Chola FY21

July 8, 2021 //2//
The Secretary The Secretary The Company vide newspaper publication dated 1st July, 2021 had informed the shareholders
National Stock Exchange of India Limited BSE Ltd. including those who are yet to register their e-mail addresses with their DPs or RTA about the
Capital Market – Listing, Exchange Plaza, 5th Floor, 25th Floor, Phiroze Jeejeebhoy Towers registration process for receipt of annual report, AGM notice and login credentials for participation
Plot No. C/1, G Block, Bandra-Kurla Complex, Dalal Street, Fort in the AGM through VC.
Bandra (E), Mumbai 400 051 Mumbai 400 001
We request you to kindly take the above on record.
NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243
Thanking you,
Dear Sir,
Yours faithfully,
Sub: Notice of the 43rd annual general meeting and Annual Report for the financial year 2020-21 For Cholamandalam Investment and Finance Company Limited
Ref: ISIN - INE121A01024
We wish to inform you that the 43rd Annual General Meeting (AGM) of the Company will be held on P Sujatha
Friday, 30th July, 2021 at 3.30 p.m. IST through Video Conference (VC). Company Secretary
Pursuant to Regulation 34(1) of Securities Exchange Board of India (Listing Obligations and Encl.: As above
Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we submit herewith a copy
of Annual Report of the Company along with the Notice of AGM. The copies of annual report and
AGM notice have been sent today to all the shareholders whose email IDs have been shared by the
Depositories as per the details registered with their Depository Participant/s (DPs) / KFin
Technologies Private Limited (KFin), the Registrar and Share Transfer Agent (RTA) for the Company.
The documents are also uploaded in the websites of the Company, www.cholamandalam.com and
RTA: https://evoting.kfintech.com/Public/Downloads.aspx.
The Company has engaged KFin for providing E-voting services and VC/OAVM facility for this AGM.
Details of e-voting are as follows:
Cut-off date for determining eligibility for Friday, 23rd July, 2021
the remote e-voting & e-voting at the AGM
E-Voting start date and time Tuesday, 27th July, 2021 (9:00 a.m. IST)
E-Voting end date and time Thursday, 29th July, 2021 (5:00 p.m. IST)
The Company is providing Video Conference facility through KFin platform for the members to
participate in the AGM. Members may access the facility at https://emeetings.kfintech.com/
through the existing login credentials provided to them for e-voting. Further, the detailed
instruction for e-voting, participation in the AGM through VC and remote e-voting have been
provided in the notice of the AGM.
Condt…2
6. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION:
RESOLVED THAT pursuant to the provisions of section 139 and other applicable provisions, if any, of the Companies

Act, 2013 and the rules made there under and RBI guidelines on appointment of statutory auditors of banks and NBFCs
(including any statutory modification(s) or re-enactment thereof for the time being in force), M/s. Sundaram & Srinivasan,
Chartered Accountants, bearing registration no.004207S be and are hereby appointed as the joint statutory auditors of the
Cholamandalam Investment and Finance Company Limited company for a period of three years from the conclusion of forty third annual general meeting till the conclusion of the
Registered Office: “Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai - 600 001. forty sixth annual general meeting.
Phone: 044 4090 7172; Fax: 044 2534 6464; RESOLVED FURTHER THAT the board of directors of the company (including any committee thereof ) be and is hereby

CIN-L65993TN1978PLC007576 authorised to fix the remuneration payable to the joint statutory auditors of the company, from time to time including
the actual travelling and out of pocket expenses incurred in connection with the audit, in addition to taxes as applicable,
E-mail ID: [email protected]; Website: www.cholamandalam.com
during the appointed period.
Notice to Members SPECIAL BUSINESS:

7. To consider and if deemed fit, to pass, the following as an ORDINARY RESOLUTION:
NOTICE is hereby given that the forty third annual general meeting (AGM) of the members of Cholamandalam Investment RESOLVED THAT pursuant to the provisions of section 152, 161 and other applicable provisions, if any, of the Companies

and Finance Company Limited will be held at 3.30 p.m. Indian Standard Time (IST) on Friday, 30 July, 2021 through video Act, 2013 (“the Act”) and the rules made there under (including any statutory modification(s) or re-enactment thereof for
conference (VC) to transact the following business: the time being in force) and pursuant to Regulation 17 of the Securities and Exchange Board of India (Listing Obligations
ORDINARY BUSINESS: and Disclosure Requirements) Regulations, 2015 and the Articles of Association of the company, Mr. Vellayan Subbiah
(holding DIN: 01138759), an additional director, holding office up to the date of this annual general meeting and in
respect of whom the company has received a notice in writing proposing his candidature for the office of a director under
RESOLVED THAT the audited standalone financial statements of the company for the year ended 31 March, 2021, the section 160 of the Act, be and is hereby appointed as a director of the company liable to retire by rotation.
board’s report including the independent auditors’ report thereon, be and are hereby considered, approved and adopted. 8. To consider and if deemed fit, to pass, the following as an ORDINARY RESOLUTION:
2. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION: RESOLVED THAT pursuant to the provisions of section 152, 161 and other applicable provisions, if any, of the Companies

ESOLVED THAT the audited consolidated financial statements of the company for the year ended 31 March, 2021,
R Act, 2013 (“the Act”) and the rules made there under (including any statutory modification(s) or re-enactment thereof for
including the independent auditors’ report thereon, be and are hereby considered, approved and adopted. the time being in force) and pursuant to Regulation 17 of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and the Articles of Association of the company, Mr. M.A.M. Arunachalam
(holding DIN: 00202958), an additional director, holding office up to the date of this annual general meeting and in respect
RESOLVED THAT an interim dividend of 65% approved by the board of directors on 29 January, 2021 on the outstanding of whom the company has received a notice in writing proposing his candidature for the office of a director under section
equity shares of ` 2/- each of the company for the year ended 31 March, 2021 and paid to those members whose names 160 of the Act, be and is hereby appointed as a director of the company liable to retire by rotation.
appeared in the register of members as on 10 February, 2021 being the record date fixed for this purpose be and are
hereby confirmed.
RESOLVED THAT pursuant to the provisions of section 149, 150, 152, 161, schedule IV and other applicable provisions, if

RESOLVED FURTHER THAT a final dividend of 35% as recommended by the board of directors be and is hereby declared

any, of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) or re-enactment
on the outstanding equity shares of ` 2/- each of the company for the year ended 31 March, 2021 and be paid to those thereof for the time being in force) and applicable provisions of the Securities and Exchange Board of India (Listing
members, in case of shares held in physical form, whose names appear in the register of members as on 30 July, 2021 Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and the Articles of Association of the
and in case of beneficial holders whose shares are held in dematerialised form as on 30 July, 2021, as per the details company, Mr. Anand Kumar (holding DIN: 00818724), an additional director, holding office up to the date of this annual
furnished by the depositories for this purpose. general meeting and in respect of whom the company has received a notice in writing proposing his candidature for the
4. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION: office of a director under section 160 of the Act be and is hereby appointed as an independent director of the company not
liable to retire by rotation, to hold office for a term of five consecutive years from 16 March, 2021 to 15 March, 2026 (both
RESOLVED THAT Mr. Ravindra Kumar Kundu (holding DIN: 07337155), who retires by rotation and being eligible has
days inclusive).
offered himself for re-appointment, be and is hereby re-appointed as a director of the company liable to retire by
rotation. 10. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION:
5. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION: RESOLVED THAT pursuant to the provisions of section 149, 150, 152, 161, schedule IV and other applicable provisions, if

any, of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) or re-enactment
RESOLVED THAT pursuant to the provisions of section 139 and other applicable provisions, if any, of the Companies
thereof for the time being in force) and applicable provisions of the Securities and Exchange Board of India (Listing
Act, 2013 and the rules made there under and RBI guidelines on appointment of statutory auditors of banks and NBFCs Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and the Articles of Association of the
(including any statutory modification(s) or re-enactment thereof for the time being in force), M/s. Price Waterhouse LLP, company, Mr. Bharath Vasudevan (holding DIN: 09104808), an additional director, holding office up to the date of this
bearing registration no.301112E/E300264 be and are hereby appointed as the joint statutory auditors of the company annual general meeting and in respect of whom the company has received a notice in writing proposing his candidature
for a period of three years from the conclusion of forty third annual general meeting till the conclusion of the forty sixth for the office of a director under section 160 of the Act be and is hereby appointed as an independent director of the
annual general meeting. company not liable to retire by rotation, to hold office for a term of five consecutive years from 16 March, 2021 to
RESOLVED FURTHER THAT the board of directors of the company (including any committee thereof ) be and is hereby 15 March, 2026 (both days inclusive).
authorised to fix the remuneration payable to the joint statutory auditors of the company, from time to time including 11. To consider and if deemed fit, to pass the following as a SPECIAL RESOLUTION:
the actual travelling and out of pocket expenses incurred in connection with the audit, in addition to taxes as applicable,
RESOLVED THAT pursuant to the provisions of sections 42, 71 and other applicable provisions, if any, of the Companies

during the appointed period.
Act, 2013 read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 and the Companies (Share Capital
and Debentures) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in
force) and in accordance with the provisions of Securities and Exchange Board of India (Issue and Listing of Debt Securities)
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Regulations, 2008, the rules, regulations, guidelines and circulars, RBI directions as amended from time to time, the 8. As an eco-friendly measure intending to benefit the environment and society at large, we request you to be a part of
Memorandum and Articles of Association of the company and subject to such other requirements as may be prescribed by the e-initiative and register your e-mail address to receive all communication and documents including annual reports
regulatory authorities from time to time, consent of the members of the company be and is hereby accorded to offer, issue from time to time in electronic form. Members holding shares in dematerialised form, may send such communication
and allot, in one or more series or tranches, secured and unsecured non-convertible debentures on a private placement to their respective DPs and those holding shares in physical form, may send such communication to RTA. In compliance
basis during the period commencing from the date of the forty third annual general meeting until the conclusion of the with the circulars, the notice of the AGM and annual report for FY 2021 are sent only through electronic mode to all those
forty fourth annual general meeting, up to an amount not exceeding ` 30,000 crores within the overall borrowing limits shareholders whose email addresses are registered with the RTA / DPs.
of the company, as approved by the members, on such terms and conditions and at such times at par or at such premium 9. Members may note that the notice of the AGM and the annual report will also be available on the company’s website,
as may be decided by the board of directors of the company (including committees thereof ), from time to time, to such www.cholamandalam.com, website of RTA: https://evoting.kfintech.com/public/Downloads.aspx and on the websites of
person or persons, including one or more companies, bodies corporate(s), statutory corporations, commercial banks,
stock exchanges: www.bseindia.com and www.nseindia.com. For any communication, the members may send requests to
lending agencies, financial institutions, insurance companies, mutual funds, pension / provident funds and individuals, as
the company’s e-mail id: [email protected].
the case may be or such other person / persons as the board of directors of the company (including committees thereof )
may determine and consider proper and most beneficial to the company including rate of interest, tenure and security 10. Members can avail the facility of nomination in respect of shares held by them in physical form pursuant to the provisions
cover thereof, the consideration for the issue, utilisation of the issue proceeds and all matters connected with or incidental of section 72 of the Act. Members desiring to avail this facility may send their nomination in the prescribed form
thereto. no. SH-13, duly filled in to the RTA. The prescribed form can be obtained from the RTA / DPs as well as downloaded from the
company’s website, www.cholamandalam.com.
RESOLVED FURTHER THAT the board of directors of the company (including any committee thereof ), be and is hereby
authorised to do all such acts, deeds and things and give such directions and further to execute such documents, deeds, 11. The company has transferred the unclaimed or un-encashed dividends for financial years up to 2013 and unclaimed shares
instruments and writings as may be deemed necessary, proper, desirable or expedient to give effect to this resolution. to the Investor Education and Protection Fund (IEPF) established by the Central Government. The company transfers the
unclaimed or un-encashed dividend to IEPF after the expiry of seven years from the date of transfer to unpaid dividend
By Order of the board account. Members who have a valid claim to any unclaimed dividends which are not yet transferred are advised to write
to the company’s RTA immediately. The dividend history, due dates for transfer to IEPF, and the details of unclaimed
amounts lying with the company in respect of dividends declared since 2014 are available on the website of the company,
Place : Chennai P. Sujatha
www.cholamandalam.com. Also, pursuant to section 124(2) of the Act, the company has uploaded details of unpaid and
Date : 5 July, 2021 Company Secretary
unclaimed amounts lying with the company in respect of dividends declared up to financial year 2020, on the website of
the company. It may be noted that a reminder has been sent for unclaimed / unpaid dividend in respect of those members
NOTES: having unclaimed dividends. Members attention is particularly drawn to the “General Shareholders Information” section of
1. Pursuant to the general circular number 02/2021 issued by the Ministry of Corporate Affairs (MCA) and circular the annual report in respect of unclaimed / unpaid dividend.
number SEBI/HO/CFD/CMD2/CIR/P/2021/11 issued by the Securities and Exchange Board of India (SEBI) (“the 12. SEBI has mandated the submission of the permanent account number (PAN) by every participant in the securities market.
Circulars”), in view of the difficulties faced due to resurgence of COVID-19, companies are allowed to hold annual Members holding shares in electronic form, are therefore, requested to submit their PAN to their respective DPs. Members
general meeting (AGM) through VC. In compliance with the circulars, the AGM of the company is being held through holding shares in physical form shall submit their details to RTA.
VC. 13. Members may note that in terms of the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividend income
2. A member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his / her will be taxable in the hands of shareholders w.e.f. 1 April, 2020 and the company is required to deduct tax at source from
behalf and the proxy need not be a member of the company. Since the AGM is being held through VC, the facility dividend paid to shareholders at the prescribed rates. For the prescribed rates for various categories, the shareholders are
for appointment of proxies by the members will not be available. Hence, proxy form, attendance slip and route map requested to refer to the Finance Act, 2020 and amendments thereof. The shareholders are requested to update their PAN
are not attached to this notice. with the company/ KFin (in case of shares held in physical mode) and depositories (in case of shares held in demat mode).
3. Corporate / institutional shareholders are required to upload in the e-voting portal, the scanned certified true copy i. A resident individual shareholder with PAN and who is not liable to pay income tax can submit a yearly declaration
(PDF Format) of the board resolution / authority letter etc., together with attested specimen signature(s) of the in Form No. 15G/15H, to avail the benefit of non-deduction of tax at source by uploading the documents on the link
duly authorised representative(s) or alternatively to e-mail, to the scrutiniser at [email protected] with a copy https://ris.kfintech.com/ form15/ on or before 20 July, 2021. Shareholders are requested to note that in case their PAN is
marked to [email protected]. The scanned image of the above mentioned documents should be in the name not registered, or his/her PAN is not linked with Aadhaar number within the due date notified by Central Government,
format “Chola – 43rd AGM”. the tax will be deducted at a higher rate of 20%.
4. The business set out in the notice will be transacted through remote electronic voting system and the company is also ii. Non-resident shareholders can avail beneficial rates under tax treaty between India and their country of residence,
providing facility for voting by electronic means in the AGM held through VC. Detailed instructions and other information subject to providing necessary documents i.e. No Permanent Establishment and Beneficial Ownership Declaration,
relating to access and participation in the AGM, voting in the AGM and remote e-voting is given as an annexure to this Tax Residency Certificate, Form 10F, and any other document which may be required to avail the tax treaty benefits by
notice. uploading the documents on the link https://ris.kfintech.com/form15/ on or before 20 July, 2021.
5. The explanatory statement pursuant to section 102 of the Companies Act, 2013 (“the Act”) and Regulation 36 of Listing iii. Dividend, if any, declared will be paid subject to deduction of income-tax at source (TDS) at applicable rates.
Regulations in respect of businesses set out above in resolution nos. 5 to 11 is annexed. In respect of resident individuals, if the dividend payment is in excess of ` 5,000 (collectively for all folios with
6. Information as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing the same PAN number) the TDS will be at the rate of 10%. For all other categories of shareholders, please refer to
Regulations) in respect of appointment / re-appointment of directors and appointment of auditors is furnished and forms the TDS rates provided in the Income Tax Act/Rules and in addition may also refer to the company’s website
a part of the notice. www.cholamandalam.com. Wherever, TDS is made, TDS certificates will be sent to the concerned shareholders through
email or post, as the case may be.
7. Pursuant to the provisions of section 91 of the Companies Act, 2013 and the listing regulations, the register of members
and share transfer books of the company will remain closed from Monday, 26 July, 2021 to Friday, 30 July, 2021 (both iv. Shareholders who have not filed returns with Income Tax Authority for the financial years 2018-19 and 2019-20 before
days inclusive). All correspondence relating to change of address, e-mail ID, transfer / transmission of shares, issue of the due date and aggregate of TDS is ` 50,000 or more in each of these two years, the TDS will be at the rate of 20% for
duplicate share certificates, bank mandates and all other matters relating to the shareholding in the company may be dividend paid on or after 1 July, 2021.
made to KFin Technologies Private Limited (KFin), the registrar and share transfer agent (RTA). The members holding shares v. The documents submitted in this regard, are subject to verification by the company and in case of ambiguity, the
in dematerialised form may send such communication to their respective depository participant/s (DPs). company reserves its right to deduct the TDS as per the provisions of the Income Tax Act, 1961.
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14. Pursuant to SEBI circular no.SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on “e-Voting facility provided by 149 of the Act, an ID shall hold office for a term up to five consecutive years on the board of a company and shall not be
Listed Companies”, e-Voting process has been enabled to all the individual demat account holders, by way of single login liable to retire by rotation. Accordingly, the board recommends the appointment of Mr. Anand Kumar as an ID for a term
credential, through their demat accounts / websites of Depositories / DPs in order to increase the efficiency of the voting of five consecutive years. In compliance with the provisions of section 149 read with schedule IV of the Act and applicable
process. Shareholders are advised to update their mobile number and e-mail ID with their DPs to access e-Voting facility. provisions of the Listing Regulations, the appointment of Mr. Anand Kumar is being placed before the members for their
15. Since shares of the company are traded on the stock exchanges compulsorily in demat mode, members holding shares in approval.
physical mode are advised to get their shares dematerialised. Effective 1 April, 2019, SEBI has disallowed listed companies Except Mr. Anand Kumar, being the appointee, none of the directors or key managerial personnel of the company or their
from accepting request for transfer of securities which are held in physical form. The shareholders who continue to hold relatives is concerned or interested, financially or otherwise in the aforesaid resolution.
shares in physical form after this date, will not be able to lodge the shares with company / its RTA for further transfer.
Shareholders shall mandatorily convert them to demat form if they wish to effect any transfer. Only the requests for Item No.10 - Appointment of Mr. Bharath Vasudevan as an independent director:
transmission and transposition of securities in physical form, will be accepted by the company / RTA. Pursuant to the provisions of section 161 of the Companies Act, 2013 (the Act) and based on the recommendation of the
16. Members desirous of obtaining any information / clarification relating to the accounts may submit their query through nomination and remuneration committee, Mr. Bharath Vasudevan (holding DIN: 09104808) was appointed as an additional
KFin video conferencing platform as mentioned in the instructions annexed to this notice so as to enable the management director of the company effective 16 March, 2021 and holds office up to the date of this AGM. Details of his qualification,
to keep the information ready. experience, expertise and the information pursuant to regulation 36(3) of Listing Regulations and Secretarial Standards on
general meetings are disclosed herein as an annexure to this statement. Mr. Bharath has given a declaration to the board
17. The Register of Directors and Key Managerial Personnel and their shareholding, maintained under section 170 of the Act,
that he meets the criteria of independence as provided under section 149 of the Act as well as under applicable provisions
and the Register of Contracts or Arrangements in which the directors are interested, maintained under section 189 of the
of the Listing Regulations. In the opinion of the board, Mr. Bharath fulfills the conditions specified in the Act and rules
Act, will be available electronically for inspection by the members during the AGM. All documents referred to in the notice
made there under for appointment as an independent director (ID). Pursuant to the provisions of section 149 of the Act,
will also be available for electronic inspection by the members up to the date of AGM, i.e. July 30, 2021. Members seeking
an ID shall hold office for a term up to five consecutive years on the board of a company and shall not be liable to retire by
to inspect such documents can send an email to [email protected].
rotation. Accordingly, the board recommends the appointment of Mr. Bharath as an ID for a term of five consecutive years.
In compliance with the provisions of section 149 read with schedule IV of the Act and applicable provisions of the Listing
By Order of the board Regulations, the appointment of Mr. Bharath is being placed before the members for their approval.
Place : Chennai P. Sujatha Except Mr. Bharath Vasudevan, being the appointee, none of the directors or key managerial personnel of the company or
Date : 5 July, 2021 Company Secretary their relatives is concerned or interested, financially or otherwise in the aforesaid resolution.
The company has received a notice in writing from a member under the provisions of section 160 of the Act proposing the
candidatures of Mr. Vellayan, Mr. Arunachalam, Mr. Anand Kumar and Mr. Bharath as directors of the company.
ANNEXURE TO THE NOTICE
Item No.11 - Issue of securities on a private placement basis:

A. EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Pursuant to the provisions of section 42 of the Companies Act, 2013 read with Companies (Prospectus and Allotment
Item No.7 - Appointment of Mr. Vellayan Subbiah as a director liable to retire by rotation:
of Securities) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force), a
Pursuant to the provisions of section 161 of the Act and based on the recommendation of the nomination and remuneration company offering or making an invitation to subscribe to non-convertible debentures (“NCDs”) on a private placement
committee, Mr. Vellayan Subbiah (holding DIN: 01138759) was appointed as an additional director of the company on basis, is required to obtain the prior approval of the shareholders by way of a special resolution. The company proposes to
11 November, 2020 and holds office up to the date of this AGM. Details of his qualification, experience, expertise and borrow up to ` 30,000 crores by way of NCDs during the period from the conclusion of 43rd AGM till the conclusion of the
the information pursuant to regulation 36(3) of Listing Regulations and Secretarial Standards on general meetings are 44th AGM. The proceeds of the issue are expected to be utilised for working capital to finance the growth of the lending
disclosed herein as an annexure to this statement. In compliance with the provisions of section 152 of the Act and the portfolio of the company in its core businesses. Further, in order to maintain its regulatory capital adequacy requirements,
Listing Regulations, the appointment of Mr. Vellayan is being placed before the members for their approval. the company would issue NCDs in the form of subordinated debt and perpetual debt instruments from time to time.
Except Mr. Vellayan Subbiah, being the appointee, none of the directors or key managerial personnel of the company or Accordingly, the approval of the members is being sought in connection with the aforesaid proposed issue of NCDs. Further,
their relatives is concerned or interested, financially or otherwise in the aforesaid resolution. members are requested to authorise the board (including any committee thereof ) to issue NCDs on a private placement
Item No.8 - Appointment of Mr. M.A.M. Arunachalam as a director liable to retire by rotation: basis, as stipulated above in one or more tranches, within the overall borrowing limits of the company, as approved by the
members from time to time. The board recommends the resolution as set out in item no.11 of the notice for approval of the
Pursuant to the provisions of section 161 of the Act and based on the recommendation of the nomination and remuneration members.
committee, Mr. M.A.M. Arunachalam (holding DIN: 00202958) was appointed as an additional director of the company
on 29 January, 2021 and holds office up to the date of this AGM. Details of his qualification, experience, expertise and None of the directors, key managerial personnel of the company or their relatives is concerned or interested in the resolution.
the information pursuant to regulation 36(3) of Listing Regulations and Secretarial Standards on general meetings are B. DISCLOSURE UNDER REGULATION 36(5) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
disclosed herein as an annexure to this statement. In compliance with the provisions of section 152 of the Act and the REGULATIONS, 2015
Listing Regulations, the appointment of Mr. Arunachalam is being placed before the members for their approval.
Item Nos. 5 & 6 – Appointment of M/s. Price Waterhouse LLP and M/s. Sundaram & Srinivasan, Chartered Accountants
Except Mr. M.A.M. Arunachalam, being the appointee, none of the directors or key managerial personnel of the company as Joint Statutory Auditors:
or their relatives is concerned or interested, financially or otherwise in the aforesaid resolution.
M/s. S.R. Batliboi and Associates (SRB) were appointed as the statutory auditors of the company at the 39th AGM of the
Item No.9 - Appointment of Mr. Anand Kumar as an independent director:
company held in July, 2017 and will be completing 4 years of continuous service at the ensuing AGM of the company
Pursuant to the provisions of section 161 of the Companies Act, 2013 (the Act) and based on the recommendation of scheduled on 30 July, 2021. Pursuant to the RBI circular dated 27 April, 2021 on Guidelines for appointment of statutory
the nomination and remuneration committee, Mr. Anand Kumar (holding DIN: 00818724) was appointed as an additional auditors of banks and NBFCs, SRB will be ineligible to continue beyond 30 September, 2021. In view of the same, SRB had
director of the company effective 16 March, 2021 and holds office up to the date of this AGM. Details of his qualification, communicated their intention to resign as statutory auditors of the company and the resignation will be effective upon
experience, expertise and the information pursuant to regulation 36(3) of Listing Regulations and Secretarial Standards signing the limited review reports for the quarter ending 30 June, 2021. Further, in compliance with the aforesaid RBI circular,
on general meetings are disclosed herein as an annexure to this statement. Mr. Anand Kumar has given a declaration to the statutory audit of the company should be conducted under joint audit of a minimum of two audit firms. Accordingly, the
the board that he meets the criteria of independence as provided under section 149 of the Act as well as under applicable Board recommends the appointment of M/s. Price Waterhouse LLP and M/s. Sundaram & Srinivasan, Chartered Accountants
provisions of the Listing Regulations. In the opinion of the board, Mr. Anand Kumar fulfills the conditions specified in the as Joint statutory auditors of the company for approval.
Act and rules made there under for appointment as an independent director (ID). Pursuant to the provisions of section
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Proposed statutory audit Up to ` 52 lakhs of statutory audit fees for the period ending 31 March, 2022 in aggregate Name of the director Mr. Vellayan Subbiah Mr. M.A.M. Arunachalam Mr. Anand Kumar Mr. Bharath Vasudevan
fee payable to auditors for both the statutory auditors of the company as may be decided by the Board of Directors Number of meetings Attended 4 out of 4 Attended 3 out of 3 Attended 2 out of 2 Attended 2 out of 2
including any committee thereof. of the board attended meetings of the board meetings of the board held meetings of the board meetings of the board
Terms of appointment M/s. Price Waterhouse LLP (PWC) and M/s. Sundaram & Srinivasan, Chartered Accountants during the year held during his tenure. during his tenure. held during his tenure. held during his tenure.
(S&S) are recommended for appointment for a term of three years from the closure of Directorships in other 1. Tube Investments of 1. Tube Investments of 1. Tube Investments of Nil
43rd Annual General Meeting till the closure of 46th Annual General Meeting. public and private India Limited (TII) India Limited (TII) India Limited (TII)
companies 2. Cholamandalam 2. Cholamandalam 2. TVS Supply Chain
Material change in fee No material change in fee for the proposed auditors. Outgoing auditors were paid a statutory Financial Holdings Home Finance Limited Solutions Limited
payable audit fees ` 47.30 lakhs for FY 21. Limited (CFHL) (CHFL) 3. DRSR Logistics
Basis of recommendation The recommendations are based on the fulfilment of the eligibility criteria prescribed by RBI 3. Ambadi Investments 3. Coromandel Services Private
and auditor credentials guidelines and the Companies Act, 2013 with regard to the full time partners, statutory and Limited (AIL) Engineering Company Limited
4. SRF Limited (SRF) Limited (CECL)
branch audit experience of the firms, capability, independence assessment, audit experience
5. Shanthi Gears Ltd. 4. Ambadi Investments
of banks and NBFCs.
6. C G Power & Industrial Limited (AIL)
PWC Solutions Limited (CG 5. Parry Enterprises India
Power) Limited (PEIL)
PWC is one of the oldest professional services firms with pan India presence. The firm has
7. Cherrytin Online 6. Shanthi Gears Ltd.
more than 2000 staff and more than 75 audit partners in India. The audit firm has valid Peer Private Ltd. 7. C G Power & Industrial
Review certificate. PWC is primarily engaged in providing audit and assurance services to its 8. DOT IOT Technologies Solutions Limited (CG
clients. Private Limited Power)
S&S 8. New Ambadi Estates
Private Limited
S&S was established in 1943 providing various audit and advisory services. The firm has 9. A R Lakshmi Achi
experience of over seven decades in various sectors including NBFCs and banks. The firm has Trust (Sec. 8 Private -
12 partners servicing more than 300 clients. The audit firm has valid peer review certificate. Company)
Memberships in board Chairman: Chairperson: Nil Nil
C. DISCLOSURE UNDER REGULATION 36 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) committees of other 1. Stakeholder 1. Stakeholders
REGULATIONS, 2015 AND SECRETARIAL STANDARDS ON GENERAL MEETINGS companies (includes Relationship Relationship
membership details of all Committee – CG Committees – TII &
Name of the director Mr. Vellayan Subbiah Mr. M.A.M. Arunachalam Mr. Anand Kumar Mr. Bharath Vasudevan committees) Power CECL
2. Risk Management 2. Shares and Debentures
DIN 01138759 00202958 00818724 09104808
Committee – CG Committee – TII
Date of Birth 7 August, 1969 18 June, 1967 14 October, 1967 24 July, 1974 Power 3. Loans Committee - TII
Date of Appointment 11 November, 2020 29 January, 2021 16 March, 2021 16 March, 2021 Member: Member:
(Initial appointment) 1. Audit Committee – 1. Audit Committee –
- Appointed as an - Appointed as an - Appointed as an - Appointed as an
CG Power and SRF PEIL, CECL & TII
additional director of the additional director of the additional director in the additional director in the
company. company. capacity of independent capacity of independent 2. Nomination and 2. Stakeholders
director of the company. director of the company. Remuneration Relationship
- Was the Managing Committee – CG Committee – CG Power
Director of the company
Power 3. Nomination and
from 19 August, 2010 to
18 August, 2017. 3. Shares & Debenture Remuneration
Committee- TII Committee – PEIL &TII
Qualification B.Tech in Civil Engineering MBA from the University MBA from Vanderbilt B.Tech in Mechanical 4. Loans Committee - TII and CG Power
from IIT Madras and holds of Chicago, USA. University, U.S.A. Engineering from IIT 5. Stakeholder 4. Risk Management
a Masters in Business Madras and MBA from Relationship Committee - TII
Administration from Indian Institute of
Committee - TII
University of Michigan. Management, Bangalore.
No. of shares held in the Nil 65,000 equity shares of Nil Nil
Expertise in specific Has rich experience Has over 15 years Has over 28 years Has over 20 years of company ` 2 each
functional areas of over 23 years in of experience in of experience in experience in Retail
consulting, technology management and investments, mergers financial services across No. of shares held in the Nil Nil Nil Nil
and financial services marketing. Is the chairman & acquisitions, equity geographies and company as a beneficial
in different positions of Tube Investments of capital markets and companies. owner
across various industries India Limited and Parry leveraged finance in
viz., McKinsey & Co, 24/7 Enterprises India Limited Southeast Asia. Inter-se relationship with Nil Nil Nil Nil
Customer Inc, Sundaram (PEIL). Was the managing any other directors or
Fasteners & Laserwords. director of PEIL till March KMP of the company
2019, a Murugappa group Details of remuneration Refer corporate Refer corporate Refer corporate Refer corporate
business arm which is
into polynets, general sought to be paid governance report governance report governance report governance report
marketing, travels and Details of remuneration Not Applicable Not Applicable Not Applicable Not Applicable
solar energy. last drawn
7 8
INSTRUCTIONS: Type of
A. Instructions for the Remote e-voting for the 43rd Annual General Meeting of the company through VC: shareholders Login Method
Pursuant to the provisions of section 108 of the Companies Act, 2013 (the Act) read with rule 20 of the Companies Individual 1. Existing user who have opted for Easi / Easiest
(Management and Administration) Rules, 2014 and the listing regulations as amended from time to time, the company is Shareholders I. Visit URL: https://web.cdslindia.com/myeasi/home/login or URL: www.cdslindia.com
pleased to offer e-voting facility to members to exercise their votes electronically on all resolutions set forth in the notice holding
II. Click on New System Myeasi.
convening the AGM scheduled to be held on Friday, the 30 July, 2021 at 3.30 p.m. securities in
demat mode III. Login with your registered user id and password.
The board of directors of the company has appointed Mr. R. Sridharan of M/s. R. Sridharan & Associates, practicing company
secretary, Chennai as the scrutiniser for conducting the remote e-voting and the e-voting process in the AGM in a fair with CDSL IV. The user will see the e-Voting Menu. The menu will have links of ESP i.e. KFin e-Voting portal.
and transparent manner. In terms of the requirements of the Act and the rules made there under, the company has fixed V. Click on e-Voting service provider name to cast your vote.
23 July, 2021 as the cut-off date. The remote e-voting / voting rights of the members / beneficial owners shall be reckoned
on the equity shares held by them as on cut-off date, i.e. 23 July, 2021. The company has engaged the services of KFin 2. User not registered for Easi/Easiest
Technologies Private Limited (KFin) to provide VC facility, remote e-voting and voting in the AGM in a secure manner. I. Option to register is available at https://web.cdslindia.com/myeasi/Registration/EasiRegistration
The remote e-voting facility begins on Tuesday, the 27 July, 2021 (9:00 a.m. IST) and ends on Thursday, the 29 July, 2021 II. Proceed with completing the required fields.
(5:00 p.m. IST). During this period, the members of the company, holding shares either in physical form or in dematerialised III. Follow the steps given in point 1.
form, as on the cut-off date, are entitled to avail the facility to cast their vote through remote e-voting.
3. Alternatively, by directly accessing the e-Voting website of CDSL
The remote e-voting will not be allowed beyond the aforesaid date and time and the e-voting module shall be disabled by
KFin upon expiry of the aforesaid period. Once the vote on a resolution is cast by the member, he shall not be allowed to I. Visit URL: www.cdslindia.com
change it subsequently or cast the vote again. II. Provide your demat account number and PAN.
B. Submission of questions prior to AGM: Members who would like to express their views/raise questions may please log III. System will authenticate user by sending OTP on registered Mobile & Email as recorded in the
into https://emeetings.kfintech.com and click on “Post your queries” and post their queries/views/questions in the window demat account.
provided by mentioning the name, demat account number/folio number, email ID, mobile number. Please note that, IV. After successful authentication, user will be provided links for the respective ESP, i.e KFin where the
questions will be answered only if the member continues to hold the shares as of cut-off date. The facility for posting e- Voting is in progress.
questions will be open from 24 July, 2021 at 9 a.m. till 27 July, 2021 at 5 p.m.
Individual I. You can also login using the login credentials of your demat account through your DP registered
C. Registration as a speaker at the AGM: Members who wish to speak at the AGM may log into https://emeetings. kfintech.
com and click on the “Speaker Registration” icon by mentioning their name, demat account number/folio number, Shareholder with NSDL /CDSL for e-Voting facility.
city, e-mail id and mobile number. The facility for registration as a speaker will be open from 24 July, 2021 at 9 a.m. till login through II. Once logged-in, you will be able to see e-Voting option. Once you click on e-Voting option, you will
27 July, 2021 at 5 p.m. The company reserves the right to limit the number of members asking questions depending on the their demat be redirected to NSDL / CDSL Depository site after successful authentication, wherein you can see
availability of time at the AGM. accounts / e-Voting feature.
D. Instructions for e-voting: Website of
III. Click on options available against company name or e-Voting service provider – KFin and you will
Depository
a) Login method for remote e-Voting for individual shareholders holding securities in demat mode. be redirected to e-Voting website of KFin for casting your vote during the remote e-Voting period
Participant without any further authentication.
Type of
Login Method Important note: Members who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot Password
shareholders
Individual 1. User already registered for Internet-based Demat Account Statement (IDeAS) facility: option available at respective websites. Helpdesk for Individual Shareholders holding securities in demat mode for any technical
Shareholders I. Visit URL: https://eservices.nsdl.com issues related to login through Depository i.e. NSDL and CDSL.
holding II. Click on the “Beneficial Owner” icon under “Login” under ‘IDeAS’ section. Login type Helpdesk details
securities in
demat mode III. On the new page, enter User ID and Password. Post successful authentication, click on “Access to Securities held with NSDL Please contact NSDL helpdesk at [email protected] or call at toll free no.: 1800 1020 990 and
with NSDL e-Voting”. 1800 22 44 30
IV. Click on company name or e-Voting service provider and you will be re-directed to e-Voting service Securities held with CDSL Please contact CDSL helpdesk at [email protected] or contact at 022- 23058738 or
provider website for casting the vote during the remote e-Voting period. 022-23058542-43
2. User not registered for IDeAS e-Services
b) Login method for e-Voting for shareholders other than Individual shareholders holding securities in demat
I. To register click on link : https://eservices.nsdl.com
mode and shareholders holding securities in physical mode.
II. Select “Register Online for IDeAS” or click at https://eservices.nsdl.com/SecureWeb/IdeasDirect
Reg.jsp 1) Members whose email IDs are registered with the company/ depository participant(s), will receive an email from KFin
III. Proceed with completing the required fields. which will include details of E-Voting Event Number (5969), USER ID and password. Members will have to follow the
following process:
IV. Follow steps given in point 1.
3. Alternatively by directly accessing the e-Voting website of NSDL i. Open your web browser during the voting period and navigate to https://evoting.kfintech.com.
I. Open URL: https://www.evoting.nsdl.com/ ii. Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN followed
II. Click on the icon “Login” which is available under ‘Shareholder/Member’ section. by folio number. In case of demat account, User ID will be your DP ID and client ID. However, if you are already
registered with KFin for e-voting, you can use your existing User ID and password for casting your vote.
III. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account
number held with NSDL), password / OTP and a verification code as shown on the screen. iii. After entering these details appropriately, click on “LOGIN”.
IV. Post successful authentication, you will requested to select the name of the company and the iv. You will now reach password change menu wherein you will be mandatorily required to change your password.
e-Voting service provider name, i.e., KFin. The new password shall comprise of minimum 8 characters with at least one upper case (A - Z), one lower
V. On successful selection, you will be redirected to KFin e-Voting page for casting your vote during case (a-z), one numeric value (0-9) and a special character (@, #, $, etc.). The system will prompt you to change
the remote e-Voting period. the password and update the contact details like mobile number, e-mail ID, etc. on first login. You may also
9 10
enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly F. Instructions for members for e-voting during the AGM session:
recommended that you do not share your password with any other person and that you take utmost care to keep Members who have not cast their vote through remote e-voting shall be eligible to cast their vote through e-voting system
your password confidential.
available during the AGM. E-voting during the AGM is integrated with the VC platform of KFin. Members may click on the
v. Login again with the new credentials. voting icon displayed on the screen to cast their votes.
vi. On successful login, the system will prompt to select the E-voting event. Other instructions:
vii. Select the EVENT of Cholamandalam Investment and Finance Company Limited and click on “SUBMIT”.
I. E-Voting Event Number - 5969 (EVEN).
viii. Now you are ready for e-voting as “Cast Vote” page opens.
II. Members may refer to the Help & Frequently Asked Questions (FAQs) section of https://evoting.kfintech.com/public/
ix. On the voting page, enter the number of shares (which represents the number of votes) as on the cut-off date Faq.aspx or write to them at [email protected] or call KFin on & Toll-free No. 1-800-3094-001 for any technical
under “FOR / AGAINST” or alternatively, you may partially enter any number in “FOR” and partially “AGAINST” but
assistance or support before or during the AGM.
the total number in “FOR / AGAINST” taken together not exceeding your total shareholding as mentioned herein
above. You may also choose the option ABSTAIN. III. You can also update your mobile number and e-mail id in the user profile details of the folio which may be used for
x. Members holding multiple folios / demat accounts shall choose the voting process separately for each folio / sending future communication(s).
demat accounts. IV. The voting rights of members shall be in proportion to their shares of the paid-up equity share capital of the company
xi. Voting has to be done for each item of the notice separately. In case you do not desire to cast your vote on any as on the cut-off date, 23 July, 2021.
specific item it will be treated as abstained. V. The members, whose names appear in the Register of Members / list of beneficial owners as on Friday, 23 July, 2021,
xii. You may then cast your vote by selecting an appropriate option and click on “SUBMIT”. being the cut-off date, are entitled to vote on the resolutions set forth in this Notice. A person who is not a member as
xiii. A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have voted on on the cut-off date should treat this Notice for information purposes only. Once the vote on a resolution(s) is cast by
the resolution, you will not be allowed to modify your vote. During the voting period, members can login any the member, the member shall not be allowed to change it subsequently.
number of times till they have voted on the resolution(s).
VI. Any person who acquires shares of the company and becomes a member of the company after dispatch of the notice
2) Members whose email IDs are not registered with the company/depository participants(s), are requested to follow the to the members and holding shares as on the cut-off date, may obtain the login ID and password by sending a request
following process: to the email ID [email protected]. However, if you are already registered with KFin for remote e-voting then
a. Members may temporarily get their email ID and mobile number registered with KFin, by accessing the link: member can use his/her existing user ID and password for casting your vote.
https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx. Members are requested to follow
VII. In case a person has become a member of the company after dispatch of AGM Notice but on or before the cut-off date
the process as guided to capture the email address and mobile number for sending the soft copy of the notice
and e-voting instructions along with the User ID and Password. In case of any queries, member may write to for E-voting, he/she may obtain the User ID and Password in the manner as mentioned below:
[email protected]. a) If the mobile number of the member is registered against Folio No./ DP ID Client ID, the member may send SMS:
b. Alternatively, member may send an e-mail request at the email id [email protected] along with scanned MYEPWD <space> E-Voting Event Number+Folio No. or DP ID Client ID to 9212993399:
copy of the signed copy of the request letter providing the email address, mobile number, self-attested PAN copy 1. Example for NSDL:
and client master copy in case of electronic folio and copy of share certificate in case of physical folio for sending the
Annual report, Notice of AGM and the e-voting instructions. 2. MYEPWD <SPACE> IN12345612345678
c. After receiving the e-voting instructions, please follow the steps from sl. no. (i) to sl. no. (xiii) in pt.1) to cast your vote 3. Example for CDSL:
by electronic means. 4. MYEPWD <SPACE> 1402345612345678
E. Instructions for the members for attending the 43rd AGM of the company through VC:
5. Example for Physical:
1. Members can attend the AGM through the link https://emeetings.kfintech.com/ by using their remote e-voting
credentials. 6. MYEPWD <SPACE> XXXX1234567890
2. The facility for joining the AGM will be opened 30 minutes before the scheduled time of the meeting on first cum first b) If e-mail address or mobile number of the member is registered against Folio No. / DP ID Client ID, then on the home
serve basis up to 2000 members. In respect of large shareholders (shareholders holding 2% or more shareholding), page of https://evoting.kfintech.com/, the member may click “Forgot Password” and enter Folio No. or DP ID Client ID
promoters, institutional investors, directors, key managerial personnel, the chairpersons of the audit committee, and PAN to generate a password.
nomination and remuneration committee and stakeholders relationship committee and auditors, the restrictions on VIII. Members who have cast their votes through remote e-voting may also attend the AGM. However, those members are
number of members will not be applicable.
not entitled to cast their vote again in the AGM.
3. Members can participate in the AGM through their desktops / smartphones / laptops etc. However, for better
experience and smooth participation, it is advisable to join the meeting through desktops / laptops with high-speed IX. A member can opt for only one mode of voting i.e., either through remote e-voting or voting at the AGM. Thus, voting
internet connectivity. It is recommended to use a stable Wi-Fi or LAN connection. facility at the AGM shall be used only by those who have not exercised their right to vote through remote e-voting.
4. The attendance of the members (members logins) attending the AGM will be counted for the purpose of reckoning X. The scrutiniser shall immediately after the conclusion of the voting at the general meeting, first count the votes cast
the quorum under section 103 of the Act. at the meeting, thereafter unblock the votes in the presence of at least two witnesses not in the employment of the
company and make a consolidated scrutiniser’s report on or before 31 July, 2021 of the total votes cast in favour or
Step 1 Access the URL https://emeetings.kfintech.com/
against, if any, to the chairman of the company or person authorised by him in writing who shall countersign the same.
Step 2 Enter the login credentials (i.e., User ID and password provided for remote e-voting)
XI. The voting results declared along with the scrutiniser’s report shall be placed on the company’s website,
Step 3 Please select the name of the meeting
www.cholamandalam.com and on the website of KFin, https://evoting.kfintech.com/public/Downloads.aspx
Step 4 Click on ‘Video Conference’ option
(Select Document Type:Results) after the result is declared by the chairman / authorised person and simultaneously
Step 5 Click on the red square box with a video icon to join the VC communicated to BSE Limited and National Stock Exchange of India Limited.
11 12
Financial Statements Cholamandalam Investment and Finance Company Limited
Corporate Overview Management Reports Annual Report 2020 - 2021
https://www.cholamandalam.com/default.aspx
Note: Across this report, the word ‘Chola’ refers to ‘Cholamandalam Investment and Finance Company Limited.’
Forward-looking statement
In this Annual Report we may have disclosed forward-looking information to enable investors to comprehend our prospects and
take informed investment decisions. This report and other statements - written and oral - that we periodically make, may contain
forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried
wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’,
‘believes’ and words of similar substance in connection with any discussion of future performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our
assumptions. The achievement of results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown
risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual results could vary materially from
those anticipated, estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future
events or otherwise.
1 2
Financial
Annual ReportStatements
2020 - 2021 Cholamandalam Investment and Finance Company Limited
CorporateInvestment
Cholamandalam Overviewand Finance Company Limited Management Reports Annual Report 2020 - 2021
CORPORATE OVERVIEW CORPORATE INFORMATION
04 Corporate Information BOARD OF DIRECTORS
09 Pan India Presence Mr. Vellayan Subbiah

12 Message From The Chairman Mr. N. Ramesh Rajan
14 Board of Directors Mr. Ashok Kumar Barat
17 Business Highlights
Mr. Anand Kumar
19 Business Review
BELIEF RELOADED
Ms. Bhama Krishnamurthy
31 CSR Initiatives
Mr. Bharath Vasudevan
34 Financial Highlights
Discovering Power From Within! Mr. M.A.M. Arunachalam
Mr. Rohan Verma

MANAGEMENT REPORTS
Mr. Ravindra Kumar Kundu
36 Board’s Report
55 Management Discussion and Analysis SECRETARY

63 Report on Corporate Governance Ms. P. Sujatha
74 General Shareholders Information Phone: 044 40907172 (B) 40907055 (D)
80 Business Responsibility Report Fax: 044 25346464
PURPOSE E-mail: [email protected]
[email protected]
We believe in our vision, staying focused and determined to fulfil the dreams and aspirations of millions of Indians,
giving them hope and enabling them to “Enter a Better Life.” FINANCIAL STATEMENTS
REGISTERED OFFICE
PEOPLE 87 Standalone Financial Statements
Dare House, No. 2, N.S.C. Bose Road, Parrys,
We believe in our people. We grow leaders from within and Chola is equipped with a fearless workforce that strives for 176 Consolidated Financial Statements Chennai - 600 001
excellence and rises up to challenges.
255 GLOSSARY
TECHNOLOGY CORPORATE IDENTITY NUMBER
We believe in the power of technology to stay relevant and accelerate the future. Technology enhancements will
redefine the way we operate and boost our connections. AUDITORS L65993TN1978PLC007576
M/s. S.R. Batliboi & Associates LLP

Chartered Accountants REGISTRAR & SHARE TRANSFER AGENT
6 & 7 Floor, “A” Block, Tidel Park,
th th
KFin Technologies Private Limited
(Module 601, 701 & 702) Selenium Tower B, Plot 31-32, Gachibowli,
No.4 Rajiv Gandhi Salai, Taramani, Financial District, Nanakramguda, Hyderabad - 500 032
Chennai - 600 113 Phone: 040 67161514 | Toll-free No.: 1800-345-4001
Phone: 044 - 66548100 | Fax: 044 - 22540120 Fax: 040 23420814
03
3 04
4
Financial
CorporateInvestment
About Chola About Murugappa Group

OUR VISION Founded in 1900, the INR 381 Billion (` 38,105 Crores) Murugappa Group is one of India's leading business conglomerates.
Enable Customers to Enter a Better Life. The Group has 29 businesses including ten listed Companies traded in NSE & BSE. Headquartered in Chennai, the major
companies of the Group include Carborundum Universal Ltd., CG Power and Industrial Solutions Ltd., Cholamandalam
Financial Holdings Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance
OUR MISSION
Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro
Customer First Improving Efficiencies People Power Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd. and Wendt (India) Ltd.
Switch from product Long term Customer focus requires People are our Primary Asset. Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm
focused to customer focused profitability and sustainability Happier people = Happier Customers Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading
international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials,
Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a
Cholamandalam Investment and Finance Company Limited (Chola), was incorporated in 1978 as the financial services
wide geographical presence all over India and spanning 6 continents.
arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today
emerged as a comprehensive financial services provider offering vehicle finance, home loans, loan against property, Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and
SME loans, insurance agency, mutual fund distribution, and a variety of other financial services to customers. Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of
Chola operates from 1,137 branches across India with Assets Under Management above INR 76,518 Crores. The over 51,000 employees.
subsidiaries of Chola are Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL).
For more details, visit https://www.murugappa.com/
Key Facts
1137 16
AUM- INR
Branches
Nationwide 76,518Crores lakh
plus customers
COMMERCIAL
VEHICLE LOANS
LOAN AGAINST
PROPERTY
05
5 06
09
6
Financial
CorporateInvestment
Chola’s Statement Of Purpose Our Journey

BELIEVE IN INDIA
Our beliefs are the heart of our passion, the genes of our genius. We believe India is rising and it will continue to rise.
Because, the wisdom of our ancient civilization is now being powered by the aspirations of one of the world's
youngest populations.
BELIEVE IN CHOLA FY 2020-21

2021
We believe that Chola is uniquely placed to fulfil these aspirations. Armed with a workforce, charged by the fearless FY 2015-20 AUM crossed ₹ 76k Cr
spirit of youth, each of our business give wings, to the dreams of millions of young Indians. Dreams that will power 2020 Increased branch network to 1,137
and propel Chola to the pinnacle of progress. We believe we will achieve this fully, by championing our values. AUM crossed ₹ 66k Cr | Increased branch network to 1091
Values that allow us to be transparent and grow, so that young India with dreams, can come to us in faith and leave Maiden issue of Masala Bonds with CDC and ECB with IFC |
fulfilled. Equity infusion of ₹ 1200 crores (QIP & Pref issue)
2019
This is our purpose. AUM crossed ₹ 57k Cr| PAT crossed ₹ 1000 Cr
And every great cause calls for great leadership. Marching under a banner of meritocracy, we believe in growing Increased branch network to 900
great leaders from within. Leaders who are young. Leaders who will make today better than yesterday. 2018
AUM Crossed ₹ 43k Cr |
Through transparency, through teamwork, we believe that each one of us is this leader. That each one of us can Increased branch network to 873 FY 2010-15
make a difference. Not just for our customers, but also for our country. 2017 2015
AUM crossed ₹ 35k Cr |
Adopted GNPA recognition at 150 Days
BELIEVE IN YOURSELF Adopted GNPA recognition at 90 days
Increased branch network to 703 | Increased branch network to 534
Only one person controls your destiny. That person is you! Chola trusts you and believes in you, so believe in
Setup of GaadiBazaar Dealer Platform
yourself. Believe that you will create Chola of the future. 2014
2016
AUM crossed ₹ 24k Cr | Commenced CE Business
Adopted GNPA recognition at 120 days
AUM crossed ₹ 30k Cr 2013
AUM crossed ₹ 19k Cr | Commenced HL Business
Increased VF branch network to 473
FY 2005-10
2012
2010
AUM crossed ₹ 13k Cr | Commenced tractor business
Sold AMC Business | Focus on Secured Lending Lines
(Vehicle Finance, Home Equity) 2011
2009 Obtained AFC status | Terminated JV with DBS
Exited Consumer Finance Business
Launch of Mobile App
2008
Rights issue of ` 200 crores
2007
Commenced Home Equity Business
2006
JV with DBS Bank, Singapore
Commenced Consumer Finance
FY 1990-2005
FY 1979 Commenced vehicle finance business
Commenced equipment financing Started Chola Securities | Started Chola Distribution
07
7 08
8
Financial
CorporateInvestment
Our Presence Believing In Dreams And Making It Happen.

PRODUCT PORTFOLIO
COMMERCIAL VEHICLE LOANS

Chola offers loans for all types of commercial vehicles ranging from
Jammu & Kashmir (5)
1.5-tonne to 49-tonne GVW (Gross Vehicle Weight) which includes small
trucks, light trucks, medium trucks and heavy trucks. Chola has tie-ups with
most of the leading Indian automobile companies to provide customers the
Punjab (23) Himachal Pradesh (17) convenience of choosing any brand, any manufacturer.
Chandigarh (2) Arunachal Pradesh (1)
Uttarakhand (16)
Haryana (32)
Delhi (5) Sikkim (1) CAR & MUV LOANS
Chola provides hassle-free car finance for both new and used cars and cater to
UP (72) Assam (25) customers living in cities, rural and semi-urban areas. For new cars Chola
Rajasthan (83)
provides on-road funding on select brands and models.
Meghalaya (3)
Bihar (43)
Mizoram (1)
Gujarat (65) Madhya Pradesh (80) Tripura (4)
West Bengal (62)
Jharkand (29)
Dadra & Nagar Haveli (1)
TWO WHEELER LOANS
Maharashtra (119)
Goa (2) Chola offers In-principle approval at customer’s doorstep to quicken the
Chhattisgarh (67)
loan sanction process. Customers can choose their repayment tenure up to
Odisha (59) 5 years.
Telangana (41)
Karnataka (62) Andhra Pradesh (52)
THREE WHEELER LOANS

Pondicherry (2) Based on customers’ requirements, Chola offers loans on a wide range of
three-wheelers and funding of Motor Insurance & Life Insurance.
Customers enjoy a repayment tenure up to 5 years.
Tamil Nadu (114)
Kerala (49)
CONSTRUCTION EQUIPMENT LOANS

• 1,137 branchesacross 31 states/Union territories Chola offers loans for the complete range of Construction Equipment both
new and used. Equipment financed include Backhoe loaders, Excavators,
• 80% locations are in Tier-III, Tier-IV, Tier V and Tier-VI towns
Cranes, Wheel Loaders, Motor Graders, Pavers, Compactors, Concrete
Mixers, Forklift, etc.
Note: Figures in brackets represents total no. of branches as on 31st March 2021.
09
9 10
Financial
CorporateInvestment
Believing In Dreams And Making It Happen.

MESSAGE FROM
THE CHAIRMAN
PRODUCT PORTFOLIO
TRACTOR LOANS
Chola offers loans for both new and used tractors and other farm Dear Shareholders,
equipment with flexible repayment based on crop pattern. Chola provides
doorstep service to assist customers in completing all the documentation The COVID-19 pandemic has cost the world millions of lives and
digitally. jobs. It has compelled people all over the world to make changes in
their way of working and living.
During the year gone by, the safety and health of our employees
has been of paramount importance for the Company. We have
LOAN AGAINST PROPERTY been continually educating them on the importance of
self-discipline and adherence to all safety directions and guidelines
Loan against property are secured long term loans offered to self- issued by the government and extending support to them and
employed and salaried professionals against a commercial or residential their families in every possible way.
property as collateral. The loan could be used for business expansion,
adding new business entities to supplement one’s income. The pandemic continues to be an unprecedented challenge that
the country and the world is facing. However, such times of crisis
also lead to points of inflection and I am happy to say that your
company continues to be on a strong platform with a solid
foundation. The inherent strengths that your company has built
HOME LOANS over the past four decades, coupled with the strong community
focus and enormous trust among stakeholders have enabled it to
Chola is of the belief that every family should own a home and is committed
sail through this year of adversity.
to the national mission of “Housing for All by 2022”. Chola with its deep
understanding of the middle income families in India offers customized Industry review
affordable home loans to suit all budgets at the doorstep of the customer
with ease and convenience. Our customized eligibility programs have FY 21 was one of the challenging years for the auto industry that
reported de-growth in sales in every segment, as the economy reeled under the impact of the COVID-19 pandemic. The
enabled thousands of Self-Employed (business owners) and Salaried
domestic commercial vehicle industry closed FY 21 with a 21% de-growth after recording a 29% negative growth in FY 20 which
employees to realize their dream of owning a home.
is predominantly on account of the disruption in sales and supply chain, negative customer sentiments and economic
slowdown. Medium and heavy commercial vehicles (MHCV’s) recorded a 22% de-growth, light commercial vehicles (LCV’s)
18% de-growth and small commercial vehicles (SCV’s) 25% de-growth. Domestic car and utility vehicle industry has witnessed
SME LOANS three years of negative growth which is the first time in a decade which were majorly attributed to muted consumer
sentiments and higher cost of ownership. Tractor industry had a growth of 27% in FY 21 due to healthy farm cash flows on the
Chola SME Loans are business loans created exclusively for Small and back of a normal monsoon and minimal COVID-19 impact in rural areas. Two-wheeler industry had a de-growth of 13% in FY 21
Medium Enterprises to grow and diversify their business. Chola offers a due to higher inflation levels and reduced discretionary spending.
range of financial solutions to meet customers specific short-term or
long-term funding and business expansion requirements. The Loan against property (LAP) segment was impacted during the first half of FY 21. Most of the players in LAP were cautious
in terms of disbursements in FY 21. Initiatives by Government of India and RBI through Emergency Credit Line Guarantees
Scheme (ECLGS), moratorium and restructuring helped the industry to rebound in the second half of FY 21 and it is expected to
continue providing momentum in FY 22.
In home loan segment, the repayments were significantly impacted especially in marginal communities and self-employed
semi-formal segments. The demand in home loan segment was subdued through FY 21 and green shoots began to emerge by
Q3 FY 21. The housing sector is expected to grow 6-10% in FY 22 and affordable housing to grow at 12-15% in the same period.
Further, lowering the threshold for NBFCs to avail debt recovery under SARFAESI from ₹ 50 Lakhs to ₹ 20 Lakhs will aid
recoveries of NPAs in LAP and Home Loan segments.
11 12
Financial
CorporateInvestment
Company review Mr. M.M. Murugappan for his guidance, approachability and
leadership as a director and Chairman of the board and Board of Directors
Despite the extreme adversities faced during the year, your Company. I would like to thank Mr. Arun Alagappan for his
Company delivered yet another strong performance. Your excellent leadership during the last three years in driving the
company achieved a growth of 16% in assets under  Holds a Bachelor of Technology in Civil Engineering from IIT Madras and a Masters in
Company to its current levels. Business Administration from the University of Michigan.
management for FY 21. The PBT registered a growth of 29% as
compared to FY 20 after considering the one-time provision of RBI and other regulators have been very supportive during this  Has over 24 years of experience in the varied fields of consulting, technology, projects,
₹ 565.78 crores. Disbursements for FY 21 were at difficult phase. Our employees continue to be the greatest financial services and engineering in different positions across different industries.
₹ 26,043 crores as against ₹ 29,091 crores in the previous year strength of Chola. They have worked with extraordinary  Has worked with Mckinsey and Company, 24/7 Customer Inc. and Sundram Fasteners.
registering a decline primarily due to lower disbursements in Q1 commitment during the year. I express my gratitude to all our
 Was a recipient of the Extraordinary Entrepreneur of the Year - TiECON 2014 Award.
and Q2 of FY 21 due to lock-down. employees and their families for their sustained contribution
and support during these tough times. I thank the Board for Mr. Vellayan Subbiah  Was the Managing Director of Chola from 19 August, 2010 to 18 August, 2017.
In line with RBI guidelines, your Company had offered their guidance and support all through. I would also like to thank
(51 years) DIN: 01138759
Chairman &  Is the chairman of CG Power & Industrial Solutions Limited and the Managing Director of
moratorium to its customers based on their eligibility for EMIs our shareholders, bankers, rating agencies and business Non-Executive Director Tube Investments of India Limited. Is also a director on the Boards of various other
falling due between 1 March, 2020 to 31 August, 2020. Further, partners for their continued trust and patronage. On behalf of companies including SRF Limited, Shanthi Gears Limited and Cholamandalam Financial
your Company had offered resolution plans to its customers the Board of Directors of Chola I wish to thank you all for your Holdings Limited.
pursuant to RBI’s guideline on ‘Resolution framework for continued trust, confidence and support.  Appointed as an additional director of Chola on 11 November, 2020.
COVID-19 related stress’.
Now is the time to step back and think about our long term
Keeping asset liability management (ALM) in focus, your direction. We have currently embarked on a journey in finding
Company monitored the liquidity closely, observed RBI’s out what we would want Chola to look like in 15-20 years. This
commentaries, market dynamics and engaged in continuous calls for building on our current business model and scaling up.  Graduate in Commerce, a fellow member of the Institute of Chartered Accountants of
dialogue with lenders to ensure a healthy ALM, resulting in It requires us to add sets of skills in analytics, technology, and India.
availability of funds at the best rates throughout the year. digital areas.  Has 39 years of experience in the fields of finance, strategy and operations.
Your company’s focus on CSR activities continued during the  Was the Chairman and Senior Partner, PwC India responsible for overall strategy and
The thinking is also to move more to a ecosystem model and to
year. As in other years we were able to fully utilise our budget. operations of all PwC entities in India.
understand how Chola can present itself in such a model. The
All the programs approved by the Board were implemented natural logical ecosystem for Chola will be vehicle ecosystem.  As Chairman & Senior Partner had represented India on the Global Strategy Council of
effectively and we also participated in the efforts of the However, this alone may not be adequate for the next 15-20 PwC International and served as a member on PwC’s Central Cluster led by PwC, UK.
Mr. N. Ramesh Rajan
government in providing support to the community in the year time frame. Therefore, we have embarked on a process of (64 years) DIN: 01628318  Is the founder and senior partner of LeapRidge Advisors LLP.
pandemic. identifying other ecosystems and evaluating how to compete Independent Director
 Is the Chairman of Indo National Limited and is also on the Boards of TTK Healthcare
effectively in each of these ecosystems. When this plan Limited Kineco Limited and Rane (Madras) Limited.
While the long term outlook continues to remain bullish,
becomes clearer, we will share the details with you. I look
forecast for FY 22 remains uncertain due to the impact of  Joined the Board of Chola in October, 2018.
forward to your continuous support as always as we enter this
second wave of COVID-19. Apart from agriculture and related
long term transformation in leading Chola to be one of the
activities, most other sectors of the economy have been
largest NBFCs in the country.
adversely impacted by the pandemic and are expected to show
de-growth. RBI continues to favour prudent liquidity enabling
 Graduate in Commerce, a Fellow member of the Institute of Chartered Accountants of
environment that will foster growth and also support economic Best wishes, India, Institute of Company Secretaries of India, Associate of the Institute of Chartered
recovery. We also used the year to review all systems of Accountants of England & Wales and CPA (Australia). Is a certified Mediator empaneled
working and become more efficient and competitive. Your Vellayan Subbiah with the Ministry of Corporate Affairs, Government of India.
company will strive to consolidate its position as a leading Chairman
player in the NBFC space on account of these favourable
 Retired in 2016 as the Managing Director and Chief Executive Officer of Forbes &
Company Limited. Has held leadership positions in various Indian and multinational
developments. We are cautiously optimistic that robust
organizations, both in India and overseas - Hindustan Lever Limited, RPG Group, Pepsi,
collection mechanism aided with a strong credit risk
Mr. Ashok Kumar Barat Electrolux, Telstra, and Heinz.
assessment framework and investment in digital platform will (64 years) DIN: 00492930
support your Company steer through the strong currents of the
 Is a director on the Boards of DCB Bank Limited, Mahindra Intertrade Limited, Bata,
Independent Director
COVID-19 pandemic in FY 22 too. Huhtamaki, Birlasoft and Cholamandalam Financial Holdings Limited. Is a Member of
Managing Committee of ASSOCHAM.
On behalf of the company and board of directors, I welcome on  Is the past President of the Bombay Chamber of Commerce and Industry and The
board, Mr. M.A.M. Arunachalam, Mr. Anand Kumar and Council of EU Chambers of Commerce in India.
Mr. Bharath Vasudevan. I also take this opportunity to thank  Joined the Board of Chola in October, 2017.
13 14
Financial
CorporateInvestment
Board of Directors Board of Directors

 Holds a Master of Business Administration degree from Vanderbilt University, United  Mr. M.A.M. Arunachalam (also referred as Mr. Arun Murugappan) studied at the Doon
States of America. School, Dehradun and is an MBA graduate from the University of Chicago, USA.
 Is a co-founder and Partner of Gateway Partners, an investment firm focused on growth  A fourth generation member of the Murugappa family, drives the business development
capital and strategic opportunities across markets in Southeast Asia, South Asia, the and strategic initiatives of Parry Enterprises India Limited (PEIL) by identifying
Middle East and Africa. opportunities for its divisions - General Marketing Division, Parry Travels and Tuflex
 Has over 28 years of experience in investments, mergers & acquisitions, equity capital India.
markets and leveraged finance in South and Southeast Asia with a strong network of  Was the managing director of PEIL from January 2008 to March 2021.
Mr. Anand Kumar relationships in the region. Mr. M.A.M. Arunachalam
(53 years) DIN: 00818724 (54 years) DIN: 00202958  Is the chairman of Tube Investments of India Limited, Cholamandalam Home Finance
Independent Director  Prior to co-founding Gateway Partners in 2014, has held leadership positions in several Non-Executive Director Limited and PEIL. He is also on the Board of Coromandel Engineering Company Limited,
leading investment banks including Standard Chartered Bank and Morgan Stanley. Shanthi Gears Limited, CG Power and Industrial Solutions Limited, Great Cycles and Creative
 Is a non-executive director of TVS Supply Chain Solutions (India) and independent Cycles.
director of Tube Investments of India Limited and a few other companies in India and  Appointed as an additional director of Chola on 29 January, 2021.
abroad.
 Appointed as an additional director of Chola on 16 March, 2021.
 Holds a Bachelor degree in Electrical Engineering from Stanford University and an MBA
from London Business School.
 Holds a masters degree in science from Mumbai University.
 Is a recipient of the President’s Award for Academic excellence in Stanford University
 Has a career spanning over 36 years in IDBI (now IDBI Bank) and SIDBI, an Apex
and Dean’s List and Distinction Award from London Business School.
Development Bank for MSMEs in India covering almost all areas of development
banking operations.  Is an Entrepreneur and a technology thought leader who created India’s very first
interactive mapping portal mapmyindia.com at the age of 19 and has since built many
 Has varied management and leadership experience in resource raising, forex, treasury
technology innovations in the maps and location space.
operations, credit dispensation and management, risk management, credit function, Mr. Rohan Verma
head of branch operations and human resources division. (35 years) DIN: 01797489  Is a director on the Board of C.E. Info Systems Private Limited (MapmyIndia), India’s
Ms. Bhama Krishnamurthy Independent Director leading maps, navigation, location technologies and GPS IoT company incorporated in
(66 years) DIN: 02196839  Was on the Boards of various venture capital companies, CIBIL, SBI Global Factors as a
1992.
Independent Director nominee director of SIDBI.
 Is the Founder and Chairman of Infidreams Industries Private Limited, focused on
 Is on the boards of various companies including Reliance Industrial Infrastructure
creating social good through technology.
Limited, Network18 Media and Investments Limited, Five Star Business Finance Limited,
Muthoot Microfin Limited, CSB Bank Limited, Thirumalai Chemicals Limited, Magma  Is a member of the FICCI Young Leaders Forum.
Housing Finance Limited and e-Eighteen.com Limited.  Joined the Board of Chola in March, 2019.
 Joined the board of Chola in July, 2019.
 Graduate in Commerce and has completed Post Graduate Programme in Management

 Holds a B.Tech in Mechanical Engineering from IIT Madras and MBA from Indian for Senior Executives from the Kellogg School of Management, Indian School of Business
Institute of Management - Bangalore. and an Executive Programme in Global Business Management from the Indian Institute
 Has over 24 years of experience in the fields of financial services, risk management, of Management Calcutta.
product management, treasury, digital marketing, data science and technology.  Over 33 years of professional experience in automobile and financial services industry
 Is the Chief Revenue Officer of Trust IQ Pvt. Ltd., an advanced data science and including 21 years in Chola.
technology company and one of the largest providers of credit risk Profile in Asia.  Joined Chola as Senior Executive - Marketing in the year 2000 and handled various
 Was the Enterprise Risk Officer and Head of Risk, Analytics and Underwriting functions Mr. Ravindra Kumar Kundu functions including credit, collections before taking up the role of Business Head of
Mr. Bharath Vasudevan (53 years) DIN: 07337155
(46 years) DIN: 09104808 of Bajaj Finance Limited between 2014 and 2018. Vehicle Finance division of Chola.
Executive Director
Independent Director Instrumental in growth of the Vehicle Finance business AUM from ` 20,000 crores to
 Was the Regional Head of Risk Analytics, Head of Portfolio Management Division in 
Standard Chartered Bank in Middle East, North Africa, Afghanistan, and Pakistan ` 50,000 crores.
(MENAP) region between 2010 and 2013 and was instrumental in setting up rigorous  Is on the Boards of Cholamandalam Securities Limited and White Data Systems India
analytics based portfolio management across MENAP region. Private Limited.
 Appointed as an additional director of Chola on 16 March, 2021.  Has been the Executive Director of Chola since January, 2020.
15 16
Financial
CorporateInvestment
Business Highlights CAGR: 9% Disbursements YOY: -10%

(� in crores)
CAGR: 20% Business AUM (Net) YOY: 16%
(� in crores)
(` in crores)
30,451 69,996
KEY FIGURES (STANDALONE) IND_AS I_GAAP 29,091
60,549
PARTICULARS FY21 FY20 FY19 FY18 FY17 26,043 54,279
Branch Network (in nos.) 1137 1091 911 870 709 25,114
42,924
Disbursement 26,043 29,091 30,451 25,114 18,591 18,591
34,167
Assets Under Management (AUM) 76,518 66,943 57,560 43,629 35,110
Net Income Margin (NIM) 4,944 4,061 3,404 2,820 2,430
FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21
3,360 2,483 2,134 1,705 1,416
(# Before considering provision for COVID impact 2,038 1,586 1,823 1,401 1,106
of ` 565.78 Cr. in FY 21 and ` 504.36 Cr. in FY 20) 2,604# 2,090#
(# Before considering provisions for COVID impact of 1,515 1,052 1,186 918 719
` 420.47 Cr. in FY 21 and ` 334.72 Cr. in FY 20 (post tax impact)) 1,935# 1,387# CAGR: 28% Profit After Tax YOY: 40% CAGR: 22% Networth YOY: 17%
Key Ratios (in %) * (� in crores) (� in crores)
NIM 7.2 6.8 6.8 7.5 8.6
Expense Ratio 2.3 2.6 2.6 3.0 3.6 9,560

**1,935
Gross NPA /Gross Stage 3 Assets 4.0 3.8 2.7 3.4 4.7 **1,387
*420 8,172
2.2 2.2 1.7 2.2 3.2 1,186 *335 6,176
918 1,515 5,098
Tier I Capital 15.1 15.3 12.4 13.2 13.6 719 4,285
1,052
Tier II Capital 3.9 5.4 4.9 5.1 5.0
Capital Adequacy Ratio 19.1 20.7 17.4 18.4 18.6

Return on Total Assets - PBT (# For FY 21 and FY 20 are before 3.0 2.7 3.7 3.7 3.9
considering provision for COVID impact) 3.8# 3.5#
Return on Equity (# For FY 21 and FY 20 are before considering 16.9 15.2
20.9 19.6 18.0
provision for COVID impact) 20.9# 20.0#
Loan Losses & Provisions PBT - ROTA %
Growth Ratios (in %)
(� in crores) (� in crores)
AUM Growth 14.3 16.3 31.9 24.8 15.6
Disbursement Growth -10.5 -4.5 21.3 35.1 13.5 **3.8%

3.7% 3.7% **3.5%
3.4% *0.8%
Book Value per Share Growth 16.9 26.2 21.1 18.9 17.1
*0.8%
**1.9% 3.0%
Disbursements per Branch 22.9 26.7 33.4 28.9 26.2 **1.5% *0.8%
1.0%
NIM per Branch 4.3 3.7 3.7 3.2 3.4 0.8% *0.8%
PAT per Branch (# post tax impact before considering one 0.6% 1.1%
1.3 1.0 2.7%
1.3 1.1 1.0 0.7%
time provision of COVID impact) 1.7# 1.3# FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21
Note: Note:
a. * Growth Ratios (in %) for FY18 is as per IGAAP, since for FY 17 Ind AS is not applicable. a. * Additional provision for COVID-19 + Macro provision during FY 20 and FY 21
b. Refer glossary section for terms and ratios b. ** PAT, Growth ratios for PAT, Loan losses and ROTA-PBT before COVID & Macro provision
c. FY 17 numbers are as per IGAAP and from FY 18 onwards numbers are as per IND AS
d. Refer glossary section for terms and ratios
17 18
10
Financial
CorporateInvestment
CAGR: 9% Disbursements YOY: -13% CAGR: 21% Business AUM (Net) YOY: 14%
BUSINESS REVIEW - VEHICLE FINANCE (� in crores) (� in crores)
DIVERSIFIED ASSET PORTFOLIO 3 Wheeler 50,415

1% 24,983 44,206
2 Wheeler 23,387 40,606

HCV CE 4% 20,540
10% 6% 20,249
31,440
23,631
14,471
LCV
20%
Used Vehicles
27%
MUV
7% CAGR: 20% Income YOY: 13% CAGR: 26% PBT YOY: 29%
CAR
MINI
10% LCV Tractor
7,388
5% 10%
6,563 ** 1,736
5,430 *449
4,190 ** 1,342
Key differentiators 3,609
1,269 * 398
988
682 1,287
 Offering vehicle finance for more than three decades 945
Strong player in the market, deep rooted in semi urban & FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21


rural markets in addition to urban markets
 Highly diversified in terms of product, geography &

customer segments
 Long standing relationships with dealers & manufacturers

“We believe in Loan Losses & Provisions
(� in crores)
PBT - ROTA %
(� in crores)
 Experienced In-house Sales, Credit Ops, Collection and

growing transportation
Legal teams entrepreneurs and 3.7%
 Digital led business model addressing the evolving fuelling a million 3.6% **3.6%
needs of customers
dreams.”
3.2%
**3.1% * 0.9%
 Offering product customization and personalization **2.3% * 0.9%

**1.8%
* 0.9%
 Data and analytics driven Underwriting and Collections 1.4% * 0.9% 2.7%
0.8% 0.8%
2.2%
1.4%
 Effective Internal Control System enhancing 0.9%
productivity and quick turnaround time
 Gaadibazaar – Digital platform for buying and selling Note:

new and used vehicles a. * Additional provision for COVID-19 + Macro provision during FY 20 and FY 21
b. ** PBT, Growth ratios for PBT, Loan losses and ROTA-PBT are before COVID & Macro provision
e. Income and PBT are reported at Business AUM level
19 20
Financial
CorporateInvestment
CAGR: 4% Disbursements YOY: -1% CAGR: 11% Business AUM (Net) YOY: 14%
BUSINESS REVIEW - LOAN AGAINST PROPERTY (� in crores) (� in crores)
3,837 14,777
For over 14 years, Loan Against Property (LAP) business
3,662 12,960
has been nurturing and helping customers build their
business dreams. Every customer relationship is being 3,627 11,626
10,095
treated as an on-going partnership and Chola takes pride 3,174
in making their growth journey successful. Conscious 9,593
reorientation of the business model towards improved 3,056
customer engagement has enabled us to deliver greater

value to the customer. By embracing digital tools like
online account management, digital on-boarding and
verification, Chola commits to provide hassle free
experience to both customers and channel partners.
CAGR: 8% Income YOY: 11% CAGR: 18% PBT YOY: 18%
PRODUCTS
**396
 Business loans against property 1,639
*90
 Balance transfer of existing property loans 1,478 **334
1,247 305
1,217 *91
1,184
221
207
CUSTOMER SEGMENT
244 306
Our focus is on the middle socio-economic class
and self-employed non-professionals.
ASSET CLASS Loan Losses & Provisions PBT - ROTA %
 Self-occupied residential property (� in crores) (� in crores)
 Self-occupied commercial property
**2.9%
Key differentiators 2.8%
**2.7% *0.6%
2.3%
2.2% *0.7%
 Quick Turn Around Time
**1.1%
 Personalized door-step service to customers 1.0%
0.8% **0.8%
*0.6%
 Easy accessibility (Pan India presence with 0.0%
*0.7%
2.0%
2.2%
243 branches and growing) 0.4%
0.0%
Note:
a. * Additional provision for COVID-19 + Macro provision during FY 20 and FY 21
“We believe in giving wings to business dreams.” b. ** PBT, Growth ratios for PBT, Loan losses and ROTA-PBT are before COVID & Macro provision
e. Income and PBT are reported at Business AUM level
21 22
Financial
CorporateInvestment
BUSINESS REVIEW - HOME LOANS Our Subsidiaries

The Home Loans business is committed to the national mission of ‘Housing for CHOLAMANDALAM SECURITIES LIMITED
All by 2022’ and has been reaching out predominantly to lower middle
income families in urban and semi-urban markets to enable them to achieve Cholamandalam Securities Limited (CSEC) is a comprehensive investment solutions provider with over 20 years of
their dream of entering a better home. 99% of the portfolio comprises Home
experience in the financial market. CSEC offers and distributes a wide range of financial products. CSEC is a member of
Loans and is focused to be end-use driven.
National Stock Exchange of India Limited & BSE Limited, a depository participant registered with National Securities
Our target group remains the Lower Middle Income Group (MIG) customer.
Depository Limited (NSDL) & Central Depository Services (India) Limited (CDSL), a corporate agent with composite licence
Our average ticket size is � 15 Lakhs with an average LTV of 60% which reflects
from Insurance Regulatory and Development Authority of India and an AMFI registered Mutual Fund Distributor.
the quality of houses and marketability. 95% of the portfolio comprises
business owners with semi-formal income and significant business vintage
buying their first home. 30% of our customers are first time borrowers. Products Offered:
Chola enjoys a significant presence in the Tier II, III, IV towns and cities. In FY 2021, Home Loans were offered across Stock Broking & Depository Participant Services
9 states (Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Maharashtra, Rajasthan and Chhattisgarh). Chola
has set up multiple channels to reach out to prospective customers. These include referral agents, Direct Sales Products Distributed:
Agents (DSAs), Online platforms as well as a feet-on-street sales team.
Mutual Funds|Bonds & Debentures|Fixed Deposits| Insurance|PMS|Sovereign Gold Bonds|Initial Public Offer (IPO)
“We believe in making Affordable Housing a reality.”

PRODUCTS Key differentiators
 Loans for purchase of ready  Doorstep service at the customer place
to occupy homes
 Unique Assessed Income Programme for business owners and a
 Balance transfer of existing customized eligibility for salaried customers
home loans
 Minimal documentation
 Home Loans for Self
 Transparent end-to-end digital onboarding
construction
 Comprehensive Self-Service App for Customers on Android,
 Mixed use for residential and
iOS and Web
commercial
CAGR: 48% Disbursements YOY: 2% CAGR: 70% Business AUM (Net) YOY: 39%
CHOLA
PERSONALIZED SMART TRADE
SERVICE (MOBILE APP)
1,542
4,345
1,505
3,125
PORTFOLIO
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CHOLAMANDALAM HOME FINANCE LIMITED
Cholamandalam Home Finance Limited is a corporate agent with composite licence from Insurance Regulatory and
Development Authority of India for distributing insurance products. The company is seeking registration with RBI for
Note:
a. FY 17 numbers are as per IGAAP and from FY 18 onwards numbers are as per IND AS HFC license.
b. Refer glossary section for terms and ratios
23 24
Financial
CorporateInvestment
Helping the organization build resilience Building A Strong Data Driven Organisation
FINANCE, TREASURY & MIS ANALYTICS
Analytics function enables Chola realise the value of the c. Supporting the development of our Gaadi Bazaar
FINANCE TREASURY
rich data that the company has built from its long portal with analytics interventions on offers and
The Finance Department continued its unstinted The Treasury function had a critical role to play in ensuring market experience in its businesses and geographies. improved repo sale decisions to reduce losses.
support to business, braving COVID-19 for another year availability of funds at an optimal cost in an economic With this data and experience, the analytics function
works with the following key objectives: d. Pricing and foreclosure analytics to improve revenue
in the changed scenario. Working around with respect environment that faced unprecedented uncertainty on per customer.
to regulatory changes like Moratorium, COVID account of COVID-19. It is noteworthy that your company 1. Improve the efficiency and quality of customer
acquisition. 3. Transaction monitoring
did not avail any moratorium during the COVID-19 period
–re-structuring, ex-gratia refund to the customers etc.,
and had adequate liquidity to honor all commitments even The analytics supported the business in the Go Live Enhanced our fraud detection and prevention
which called for constant monitoring and course monitoring using near real-time outlier dashboards.
during the months of April to August when collections of the Gen4 underwriting models. This has captured
correction at short notice not limiting itself to finance multiple variables at geo / product / asset level to
were low, with 76% of the borrowers availing moratorium. 4. Using our understanding of business environment
but extending to the IT and operational fronts. drive suitable assessment of risks and enable faster and the past performance we have developed
Through the year FY 21, a high level of liquidity was decision making.
maintained on a conservative basis to ensure risk a. Forecasts for cash flows from collections
2. Enhancing the portfolio quality
Key Contributions mitigation in case the pandemic situation went from bad to
b. Performed scenario analyses for stress scenarios for
worse. Liquidity cover ratio (LCR) was formally brought into a. Collection analytics to help business prioritize portfolio closing asset positions and cash collections
force by the regulator. In compliance with the regulations, collection efforts during the pandemic. estimations
 Expanding the on-lending borrowing space
an amount of � 1500 crores was invested in b. Cross-sell for increasing customer value.
Government securities to ensure that funds were
 Achieving better Asset Liability Management
deployed in highly liquid and non sectoral dependent
 Optimizing the cost of funds

securities.
Seeing Challenges As An Opportunity To Build & Scale
Your company rode the wave on the falling yield curve and
managed to reduce the cost of funds through prudent INFORMATION TECHNOLOGY
 Devising processes for alignment with new negotiations and sound management of the borrowing
OUR KEY INITIATIVES
initiatives plan. The cost of funds to borrowing was brought down
from 8.5% to 7.6%. The treasury department has always
explored alternate avenues of funds based on DIGITAL EXPERIENCE PROCESS AUTOMATION DATA-DRIVEN ENTERPRISE CYBER SECURITY
 Reviewing liquidity positions by stress testing
the Cash flows asset-liability requirements. Your company raised US$ 185
million through the ECB route on a fully hedged basis. Digitally connect employees, Lead with Deliver key insights Strengthen technology
partner, & customers automation-first approach from data risk management
 Developing ECL models for additional provisioning The treasury function continued to support business by
exploring new opportunities for partnerships and alliances  Seamless experience  Drive automation of  Access to cohesive and  Secure technology
for customers, processes across quality information in environment with strong
with banks in order to address underserved areas of the
 One-time restructuring as notified by RBI business and technical functions & businesses timely & secure manner threat-monitoring &
economy in response to RBI’s call to the industry. partners governance
 Progressively increase  Setup Enterprise data
MIS  Provide digital ready automation vis-à-vis repository that spans  Cover all digital assets for
 Tracking and reviewing collections periodically of
solution for all entity human-led activity in system & non-system monitoring & pro-active
Moratorium and Non-Moratorium customers MIS team supported in re-evaluating the business and categories in the business processes data review / response
financial strategies by developing scenario plans which ecosystem
 Developing new business models for Co-lending resulted in recalibrating the disbursements &
and other business opportunities. collections Targets, optimizing cost structures and
renegotiating expense contracts to support the
business during COVID scenario.
25 26
Financial
CorporateInvestment
SEAMLESS DIGITAL EXPERIENCE A Catalyst For Progress

The pandemic has helped us to gain focus on providing across functions & businesses. This is being achieved
an optimal digital experience across all aspects of the using a combination of regular software solutions, robotic ENTERPRISE RISK MANAGEMENT
enterprise spanning customers, employees, and all process automation products, and adoption of cognitive The Enterprise Risk Management (ERM) functions To augment the cyber security risk management, the
partners of our business ecosystem. This includes tools. This will also include using approaches like design include: company has conducted POCs in the areas of
co-lending partners, manufacturers, dealers, brokers, thinking to shadow the field staff and ensure major vulnerability assessment & penetration testing, patch
Valuers - technical and legal, field investigators etc. aspects of their application usage is driven by tools and  Supporting business in evaluation of risk-return management, cloud security, brand & digital risk
spanning the different lines of business as well as the solutions that significantly reduce manual intervention. trade off protection, data classification & end-point security risk
different technical and FinTech partners that the Cohesive Data: The focus here is to help eliminate any management.
 Identify risk areas for mitigation and suggest
business collaborates with. kind of data friction within the enterprise and build measures to implement the same To closely monitor the liquidity risk of the company, ERM
We are progressively building a repository of services capabilities within the organization such that
Involvement in identification of risks and its function participates in the Asset Liability Committee
that enables the company to provide a digital-ready stakeholders and key decision makers have access to 
mitigation during new product design Support Group as well as the ALCO.
and integration-easy option for all types of entities in cohesive and quality information in a timely manner. This
our ecosystem to easily work with us. This coupled with will also include putting in place appropriate alerting and The company has a well-established Business Continuity
 Working closely with business to improve
stability and agility in new functionality will help in forecasting tools for pro-active action and alignment of Plan (BCP). This enabled the company to be prepared for
operational efficiencies.
providing a standards-based integration approach in a resource for execution of the plan. Ultimately, this will continuing its critical functions during the on-going
scalable manner along with ease and speed of change. help in moving towards democratization of data while All these are done in coordination with respective cross pandemic situation.
The bouquet of such services will form the basis of user having visibility into data access controls and ability to functional project teams. The Enterprise Risk
engagement across different channels - be it via mobile enforce needs-driven access. Governance and Compliance system – CURA – went
app, web browser, Chatbot, and voice/customer Digital Risk Management: As the organization gets more live during the FY 20-21.
support. digitally mature, the need for improved oversight of cyber
As we build new digital functionalities and capabilities, security related areas becomes critical. The company will STRONG COMPLIANCE CULTURE AND EFFECTIVE MANAGEMENT
the company will also ensure that the digital solution focus on securing key digital assets of the enterprise like
being put in place is an effective and efficient data, servers, network, and endpoints. In parallel,
At Chola, stronger collaboration, integration and belief mechanism across the business verticals. During the
representation of a process that has already gone initiatives to increase awareness amongst employees on
amongst all functions, together with guidance from year, the compliance team played a vital role in
through a LEAN review. This will ensure the problem is cyber related risk are being put in place. On-going
Company’s Board and senior management make a conducting several meetings of Board / Committees
solved in the right manner and digital solution emphasis will be on ensuring secure practices across all
strong culture of compliance across the organisation. remotely. The team also effectively handled the first
amplifies the benefits rather than magnifying the stages of any initiative – from requirements, solution
waste. design, infra setup, code development, change The company continued to maintain zero tolerance ever annual general meeting of the company held
management, to on-going problem management are in towards any non-adherence to regulations, policies and through video conferencing facility, by providing a
Delivering the right Digital Experience will further procedures despite all constraints posed by the remote facility to all the shareholders for participating
hinge on three factors: place. This will be coupled with relentless focus on data
access controls, data integrity, and conformance to pandemic and the following lock downs. The clarity from and exercising their voting rights. The regulatory
Increased Automation: Drive a high level of automation regulatory guidelines. top, with an optimistic goal setting and problem solving inspections were seamlessly handled besides
in the regular business activities carried out by teams approach, reloads the confidence amongst employees, monitoring, reporting and submission of various
which results in effective compliance management amid periodical compliances and disclosures remotely. The
the challenges that are aplenty. efficient management of compliance activities in any
Internal Control Systems - Promoting Stability With the outbreak of pandemic, all the companies, given situation and circumstance will be the key and also
the way forward. The team ably managed and stood up
especially the ones in financial sector, are navigating
An internal control framework, including internal financial controls, encompassing clear delegation of authority and new compliance monitoring approaches to achieve its to the occasion handling the process changes and
standard operating procedures, are available across all business and functions. The Internal Audit function has been compliance goals. A risk based approach is exercised, tracking and complying with the stream of regulatory
playing an integral role in helping Chola to strengthen and maintain solid cultures of compliance. with focus on key compliance elements arising out of changes and reporting that followed the pandemic.
current situation, while ensuring that a high standard of During the year, over 22,000 field and other staff spread
Key Focus Areas governance is maintained at all times. The timely over 1,100 branches were trained in a systematic
 Rigorous audit calendar spanning multiple business processes implemented digitisation and automation in most areas manner on various regulatory updates relevant for the
of compliance came in handy and made compliance business, know your customer regulations, fair practices
 Independent review of the design and operating effectiveness of internal financial controls
function perform seamlessly even away from office and code, prevention of insider trading, prevention of sexual
 Internal audit managers are placed across the country to review the effectiveness of the internal controls was business as usual for the function! harassment and code of conduct for collections. The
across branches Chola has in place a well-defined compliance process, trainings were conducted in the form of various
Monitoring of internal financial control systems by in-house audit team and by the external auditors integrated with robust monitoring and reporting e-modes and periodical e-mailers.

 Risk and control matrices reviewed by internal auditors on a quarterly basis
27 28
Financial
CorporateInvestment
A Transformative Year CHOLA’s Pandemic Support programs

 Special paid leave for COVID affected employees  Continued Insurance coverage for the rest of the family
OPERATIONS TEAM  Interest free loans for COVID affected employees & members for a period of 12 months
The year gone by was a year of challenges and learning. In the new normal, the way we work has changed and family on easy repayment terms  Support education of deceased frontline field
The Operations team learnt to work under varied we found newer ways to stay connected to service our  Term Life insurance – 50 times of monthly gross employees’ children upto graduation
challenges by working from home and displaying internal and external stakeholders across the length and  Company hospitalization tie-up program for COVID
 Hospitalization benefit – General Medical Insurance –
breadth of the country. There is a paradigm shift in affected employees and family
boundary less culture. Within a short span of time, the Upto � 2.5 Lakhs
terms of understanding the requirements and working
team supported the implementation of moratorium and  Cash benefit for immediate relief of COVID affected
towards delivering on expectations. The team worked  Centralized COVID War room in every Region to identify
restructuring options to customers as per RBI guidelines. employees
on technology enhancements and digitally enabled hospital beds, oxygen & medication for employees and
The team displayed tremendous resilience and never say business processes to allow our customers to be their family  Additional Death cover on account of the pandemic
die spirit in the wake of the challenges and overcoming smarter, safer and be more productive. Agile, digital and  Monthly gross salary credit to the family of the  Doctor on call (24 /7)
them with single minded focus on ensuring Customer lean shall be the prevailing themes for operations in the Deceased employee upto 24 months (with retrospect  Vaccination Support program & exclusive drives
years to come. effect from April 2020 and not limited to COVID related
Satisfaction and Enabling Business.  Mission “Zero COVID in my branch” program
deaths)
 Employment opportunity on merits for the eligible
dependents
Deriving New Energy By Believing In The Future
ENABLING, ENGAGING & EMPOWERING EMPLOYEES
HUMAN RESOURCES
FY 2020-2021 has been one of the most challenging and unprecedented years. The pandemic however presented an Learning Interventions Employee Connect Engaging Teams
opportunity to re-shape and reload our core beliefs. We have undergone a major transformation in the recruiting,
on-boarding, training and engaging with employees. The role of each HR person has evolved, from being an enabler Key Highlights Key Highlights Key Highlights
to becoming a business driver. The key HR interventions this year were on the themes of preserving, protecting and No. of programs - 82  Personalized enquiries Virtual Town Hall
building for the future.
Reach 70% Employees Conducted a companywide virtual
 Increased touch points
Training Modules town hall with top management
Employee Wellness Program: Business Continuity Plan  Reaching out to 500+ team addressing employees during
 Process Assessment lockdown.
 On Call Counseling Support employees per day
 Behavioral Assessment
 Exclusive COVID Help Desk  Zippi in-house Messenger Virtual Employee Engagement
 Webinars Activities
connecting employees
 On Call Doctor Facility 37% 42%  E-learning for Engaging employees and their
 COVID Combat Insurance Plan of Employee of Employee  Chat bot, a personalized help families through virtual events such
work from office Field Process & Product Training for
 Pandemic Paid Leave Policy support functions desk support for employees as musical fest, kids’ summer camp
and other activities and virtual talk
 Frequent COVID Awareness Communication
shows with field experts.
 Publishing of Branch Functioning SOPs 21%
of Employee
work from Home ISO certification in HR Processes:
Process Strengthening & Re-alignment: Chola Human Resources function has now been certified by TUV Nord the ISO 30408:2016 and ISO 9001:2015.
 Hiring to Relieving - Automated and Digitized With the lifting of Lockdown, around 95% of branches are ISO 30408:2016
Around 500 new employees hired operational Pan India. Various protocols on work from

home, branch operations, sanitization, prevention and Indicates that adequate tools, processes and practices have been put in place in order to establish, maintain and continually
 Attrition down by 7% compared to FY 20 improve effective human governance within Chola. This certification will add to our Employer Branding with a focus on
safety measures were communicated periodically.
attracting and retaining talent and will be establishing ourselves in the industry as a people-focused organization.
 No job cuts and no compensation & benefits Virtual audits on a periodic basis for ensuring safety at
re-alignments workplace. Everyday tracking of employees, branches ISO 9001:2015 – ISO 9001
were done for management reporting to assist informed Is the international standard that confirms the availability of the quality management system (QMS). This standard is based
 Annual salary increase & performance incentives business continuity decision making.
processed on several quality management principles including a strong customer focus, the motivation and implication of top
management, the process approach, and continual improvement in our HR practices.
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CorporateInvestment
Corporate Social Responsibility

Skill Development
“Chola believes in helping people and communities enter a better life.”
Chola supports the Murugappa Polytechnic College that imparts
Cholamandalam Investment and Finance Company Limited (Chola) has been able to make a difference to the lives of quality education and training of international standards in engineering
the community through its various CSR initiatives that are sustainable in nature. The projects are implemented across and technology through continuous improvement, teamwork, growth
the operating geographies including the rural community across India. and innovation.
Chola’s CSR activities cover major themes like Preventive Health Care, Providing Water and Sanitation, Promoting
Education, Protecting Environment, Conservation of Natural Resources, Conservation of Art and Culture, Promotion
of Sports, Encouraging Technology Incubators and Rural Development Projects across 16 states and one Union Scholarship Programs
Territory. A college degree is a normal thing but for the trucking community
Some of the key focus areas where development programs have been initiated in FY 21 are as follows: children it’s still a challenge. Chola has been running the “My Dream
Scholarship Program” for children from the trucking community in
Tamilnadu and Rajasthan. Through this program hundreds of students
Disaster Management were benefited and were able to pursue higher education beyond 10th
During COVID-19 pandemic, several welfare activities were undertaken by and 12th standard.
Chola. The company provided PPE kits and protection gear to truckers,
health workers and frontline police force. Chola supported the treatment
Supporting Educational Trusts
of patients infected with COVID-19, especially children from low income
families. Chola ran awareness campaigns on hand hygiene and social A college degree is a normal thing but for the trucking community
distancing across the country for the benefit of the commercial vehicle children it’s still a challenge. Chola has been running the “My Dream
crew members. Scholarship Program” for children from the trucking community in
Tamilnadu and Rajasthan. Through this program hundreds of students
were benefited and were able to pursue higher education beyond 10th
Education and 12th standard.
Financial Literacy Program

Health
Chola has conducted several financial literacy training programs for the
trucking community- drivers, mechanics, cleaners and their families RAAHI, National Truckers Eye Health Programme
especially women to improve their overall economic well-being. The Truck driver’s occupation exposes them to several health risks and
training has been around income and expenditures, banking systems, poor eye health is a leading concern. In October 2017, Chola launched
importance of saving practices, digital transactions and financial RAAHI, National Truckers Eye Health Programme, one of the biggest
planning. eye health programmes in the country. The key strength of the
programme is real time based data management which allows truckers
to receive eye screening services at one location and spectacle pick-up
at their preferred location.
Learning through Arts and Technology
Healing Little Hearts- Supporting Free Child Heart Surgeries
Chola has been instrumental in ensuring quality education to less
privileged children through various initiatives. The focus is to make “Healing Little Hearts” is an initiative by Chola in partnership with Sree
learning fun, concentrate on the overall development of the child, use Sathya Sai Sanjeevani Hospitals. Children connected to families of road
of arts and technology to improve learning proficiency and reduce transport industry suffering from Congenital Heart Disease (CHD) are
school dropouts. provided with free of cost surgeries and treatment. They could be
children of drivers, cleaners, mechanics of large, medium and small
trucking industry or goods carrier vehicles and mini trucks. They can be
from any state in India.
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Financial
CorporateInvestment
Financial Highlights
Water & Sanitation facilities in rural areas (� in Lakhs)
Access to safe drinking water and sanitation facilities continues to be a FINANCIAL YEAR ENDED 2021 2020 2019 2018 2017
challenge amongst the poor in the rural communities. Chola adopts
OPERATING RESULTS
villages and extends interventions such as individual toilets in villages,
village-wise purified drinking water facilities, toilets and water facilities Total Income 9,51,962 8,65,289 6,99,264 5,47,966 4,66,035
in schools etc. focusing on the upliftment of rural population in the
states of Maharashtra, Odisha and Telangana. Profit Before Tax (PBT) (Before considering
provision for COVID impact of ₹ 565.78 Cr. in FY 21 and 2,60,423 2,09,009 1,82,315 1,40,137 1,10,558
₹ 504.36 Cr. in FY 20)
Profit After Tax (PAT) (Before considering

provisions for COVID impact of ₹ 420.47 Cr. in FY 21 and
Beneficiaries Speak ₹ 334.72 Cr. in FY 20 (post tax impact))
1,93,538 1,38,709 1,18,615 91,830 71,874
Assets
“I had my first eye check up in the Loans(net) - Ind AS / Receivables under

“The eye camps were held only at
camp, and realised increase in my Transport Nagar. As it was only financing activity - IGAAP 65,83,934 55,40,273 52,62,227 42,25,323 28,41,448
eye’s refractive power. Only after this, meant for truck drivers, it was
I realized that I had diabetes” convenient as we used to go in Cash, Bank and Cash Equivalents 5,23,188 6,95,910 3,67,485 88,795 47,064
groups to get our eyes checked”
- Surendar Singh Solanki, Others 3,47,720 1,64,056 1,12,918 94,855 1,70,969
a truck driver from Madhya Pradesh - Antar Singh, a truck driver at
Indore Transport Nagar
Total Assets 74,54,842 64,00,239 57,42,630 44,08,973 30,59,480
Liabilities and Equity
Borrowings 63,72,999 55,00,543 50,56,674 38,33,033 24,10,910

I am the eldest son of my family. My father is working as a lorry driver and my
mother works as an agri coolie. They did not have enough money to spend for Others 1,25,812 82,512 68,382 66,126 2,20,078
my higher education. Thanks to the “My Dream” scholarship program, i have
joined college. I feel very thankful to Cholamandalam Finance for their help to Equity 9,56,031 8,17,184 6,17,574 5,09,814 4,28,492
brighten my future and education.
Total Liabilities 74,54,842 64,00,239 57,42,630 44,08,973 30,59,480
K. Mohanasundharam
Key Indicators*
Earnings per Equity Share - Basic (₹) 18.48 13.37 15.2 11.8 9.2
Earnings per Equity Share - Diluted (₹) 18.45 13.35 15.2 11.7 9.2
I am the second daughter of my family. My father was a lorry driver who died in an accident at Maharashtra, a year
and a half ago. In this situation the “My Dream” scholarship program helped me continue my studies. I am very
100% 85% 65% 65% 55%
thankful to Cholamandalam Finance for their education support. Dividend per Equity Share (%)
R. Sabitha 116.58 99.71 78.99 65.22 54.84
Book Value per Equity Share (₹)
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Financial
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Financial Highlights
Board’s Report
(� in Lakhs)
FINANCIAL YEAR ENDED 2016 2015 2014 2013 2012
OPERATING RESULTS
Total Income 4,19,371 3,69,119 3,26,284 2,55,568 1,78,821
Profit Before Tax (PBT) (Before considering

provision for COVID impact of ₹ 565.78 Cr. in FY 21 and 87,077 65,722 55,021 45,080 29,011
₹ 504.36 Cr. in FY 20)
Your directors have pleasure in presenting the forty third annual report together with the audited accounts of the company for the year
Profit After Tax (PAT) (Before considering ended 31 March, 2021.
provisions for COVID impact of ₹ 420.47 Cr. in FY 21 and 56,845 43,516 36,401 30,655 17,254
₹ 334.72 Cr. in FY 20 (post tax impact))
FINANCIAL RESULTS
Assets ` in crores
Particulars 2020-21 2019-20
Loans(net) - Ind AS / Receivables under Gross Income 9,519.62 8,652.89
financing activity - IGAAP 25,91,013 22,18,354 19,42,813 16,62,594 12,32,990
Profit Before Tax (PBT) 2,038.44 1,585.73
Profit After Tax (PAT) 1,514.91 1,052.37
Cash, Bank and Cash Equivalents 49,047 34,066 80,084 38,897 25,840 One-time provision for COVID and Macro 565.78 504.36
Profit Before Tax before one-time provisions 2,604.23 2,090.09
Others 1,48,771 1,34,903 1,31,783 1,16,989 84,196
Profit after Tax before one-time provisions 1,935.38 1,387.09
Total Comprehensive income 1,480.13 988.92
Total Assets 27,88,831 23,87,323 21,54,680 18,18,480 13,43,026
Appropriation:
Transfer to statutory and other reserves 1060.00 720.00
Liabilities and Equity
Dividend – Equity (including Taxes) 106.56 200.32
Borrowings 22,57,622 19,47,524 18,09,319 15,28,901 11,44,411 SHARE CAPITAL management (AUM) for FY 21. The profit before tax (PBT) registered
a growth of 29% as compared to FY 20 after considering the one-
During the year, there was an increase in paid up capital by
Others 1,65,468 1,22,466 1,15,890 93,102 56,887 time provision of ₹ 565.78 crores.
₹ 0.09 crores, consequent to allotment of shares upon exercise of
stock options by employees under the company’s employee stock Vehicle Finance (VF) business witnessed a disbursement decline of
Equity 3,65,741 3,17,333 2,29,471 1,96,477 1,41,728
option schemes. 13%. Disbursements in VF for the year were at ₹ 20,249.11 crores
as against ₹ 23,387.43 crores in the previous year. The business
Total Liabilities 27,88,831 23,87,323 21,54,680 18,18,480 13,43,026 OPERATIONS recorded a growth of 14% in closing managed assets and PBT
The year began with the COVID-19 pandemic and nation-wide lock registered a growth by 36% after considering additional provision
Key Indicators* of ₹ 449 crores towards its share of one-time provision.
down resulting in halting most of the economic activities across the
Earnings per Equity Share - Basic (₹) 7.5 6.0 5.1 4.6 2.9 country and the globe. Central Banks across the globe including RBI Loan Against Property (LAP) business also witnessed a disbursement
came into action for supporting the economy. Moratoriums were decline of 1%. Disbursements in LAP for the year were at
Earnings per Equity Share - Diluted (₹) 7.5 6.0 5.1 4.6 2.9 offered to borrowers for a period of 6 months to support them to ₹ 3,626.80 crores as against ₹ 3,661.89 crores in the previous year.
overcome the impact of COVID and related lock down. Emergency The business recorded a growth of 14% in closing managed assets
Dividend per Equity Share (%) 45% 35% 35% 35% 25% Credit Guarantee Schemes and one-time restructuring of loans and PBT showed a growth of 25% after considering its share of
were other initiatives by RBI to support the borrowers in COVID-19 one-time provision of ₹ 89.71 crores.
Book Value per Equity Share (₹) 47.32 40.70 32.05 27.46 21.38 related stress. Further reduction in repo rates, Cash Reserve Ratio Disbursements in Home Loans (HL) business were at
(CRR) and Long Term Repo Operation (LRTO) action with Banks ₹ 1,542.28 crores as against ₹ 1,504.74 crores in the previous year
supported in abundant liquidity in the financial system. and Micro, Small and Medium Enterprise (MSME) business were at
Inspite of the slowdown in the automotive sector and imposition of ₹ 624.44 crores as against ₹ 537.11 crores in the previous year.
lockdown from March, 2020 to July, 2020 across majority of states, The business AUM of the company as at 31 March, 2021 increased to
*Equity shares have been divided into face value of � 2 per share, consequently previous year figures have been adjusted.
which had a significant impact on the economy, your company ₹ 69,996 crores from ₹ 60,549 crores in the previous year, recording
Note: Numbers are as per IND AS from FY 18 onwards and rest of the years are as per IGAAP. surged back and achieved a growth of 16% in assets under a growth of 16%.
35 36
In accordance with the Reserve Bank of India (RBI) guidelines Disclosure Requirement) Regulations, 2015 (Listing Regulations), The details of the schemes as on 31 March, 2021 are provided KEY MANAGERIAL PERSONNEL
related to “COVID-19 regulatory package”, your company had copy of which is available on the website of the company. (weblink: and disclosed on the website of the company (weblink:
Pursuant to the provisions of section 203 of the Act read with the
offered moratorium to its customers based on their eligibility for https://www.cholamandalam.com/company-policies.aspx) https://www.cholamandalam/esop.aspx). rules made there under, the following employees are the whole
EMIs falling due between 1 March, 2020 to 31 August, 2020. Further,
Payment of dividend time key managerial personnel of the company during FY 21:
your company had offered resolution plans to its customers DIRECTORS
pursuant to RBI’s guideline on ‘Resolution framework for COVID-19 Your company paid an interim dividend on the equity shares at the 1. Mr. Arun Alagappan, Managing Director
Appointments
related stress’. rate of 65% (₹ 1.30 per equity share) as approved by the Board on (upto 14 February, 2021)
29 January, 2021 for the year ended 31 March, 2021. Mr. Vellayan Subbiah was appointed as an additional director
Your company holds a management overlay of ₹ 1,100 crores as at 2. Mr. Ravindra Kumar Kundu, Executive Director
with effect from 11 November, 2020 by the board and elected as
31 March, 2021 which includes an additional one-time provision Your directors are pleased to recommend a final dividend of 35%
created for COVID-19 in FY 21 for ₹ 566 crores and also retaining chairman of the board effective 12 November, 2020. 3. Mr. D. Arul Selvan, Chief Financial Officer and
(₹ 0.70 per equity share) on the equity shares of the company. With
additional provision as on 31 March, 2020 ₹ 534 crores. this, the total dividend will be 100% (₹ 2.00 per equity share) for the Further, Mr. M.A.M. Arunachalam was appointed as an additional 4. Ms. P. Sujatha, Company Secretary
As required by the RBI notification dated 13 March, 2020, your year ended 31 March, 2021. director of the company effective 29 January, 2021.
DIRECTORS’ RESPONSIBILITY STATEMENT
company has complied with the requirements of Ind AS and the
TRANSFER TO RESERVES Mr. Vellayan and Mr. Arunachalam hold office up to the date
guidelines and policies approved by the board in recognition of The directors’ responsibility statement as required under section
of ensuing AGM as additional directors. Their appointment as
impairment. The overall impairment provision made under Ind The company transferred a sum of ₹ 310 crores to statutory 134(5) of the Act, reporting the compliance with accounting
reserve as required under the Reserve Bank of India Act, 1934 and non-executive directors liable to retire by rotation have been
AS is higher than the prudential floor (including the provision standards, is attached and forms part of the board’s report.
requirement specified in the above notification) prescribed by RBI. ₹ 750 crores to general reserves. recommended for approval of the shareholders at the ensuing
AGM of the company. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
Given the dynamic and evolving nature of pandemic these FIXED DEPOSITS REGULATORS
estimates include the possible impact of known events till date are Mr. Anand Kumar and Mr. Bharath Vasudevan were appointed as
The company is an NBFC - Investment and Credit Company
subject to uncertainty caused by resurgence of COVID-19 pandemic additional directors in the capacity of independent directors on There are no significant and material orders passed by the regulators
(NBFC-ICC). The company does not hold or accept deposits as of the
and related events. 16 March, 2021. They hold office up to the date of ensuing AGM or courts or tribunals which would impact the going concern status
date of balance sheet.
During the year, your company had not availed moratorium as additional directors. The appointments of Mr. Kumar and Mr. of the company and its future operations.
on its borrowings. Your company had a closing balance of cash CAPITAL ADEQUACY Vasudevan as independent directors up to 5 years from the date of MATERIAL CHANGES AND COMMITMENTS AFFECTING
and bank balances including term deposits and investments The company’s capital adequacy ratio was at 19.1% as on their appointments have been recommended for approval of the THE FINANCIAL POSITION OF THE COMPANY
in Government securities ₹ 6,428 crores, sanctioned lines of 31 March, 2021 as against the statutory minimum capital adequacy shareholders at the ensuing AGM of the company.
₹ 2,000 crores and undrawn consortium limits of ₹ 1,351 crores as on There are no significant material changes and commitments
of 15% prescribed by RBI.
31 March, 2021, ensuring no negative cumulative mismatches Mr. Ravindra Kumar Kundu, Director who retires by rotation at affecting the financial position of the company that occurred
across all time buckets. Pursuant to RBI notification on monitoring EMPLOYEE STOCK OPTION (ESOP) SCHEMES the ensuing AGM and being eligible, has offered himself for between the end of financial year and the date of this Report.
liquidity position of company, Liquidity Coverage Ratio (LCR) must ESOP 2016 re-appointment.
MANAGEMENT DISCUSSION AND ANALYSIS
be maintained at 50% and your company has been tracking this Resignation
Pursuant to the approval accorded by the shareholders on The management discussion and analysis report (MDA), highlighting
ratio for the past few months and ensured that the coverage is
amply fulfilled. 3 January, 2017 the nomination and remuneration committee Mr. M.M. Murugappan, chairman and non-executive director of the the business-wise details is attached and forms part of this report.
had formulated an employee stock option scheme 2016 company resigned as a director and chairman of the board with MDA also contains the details of the risk management framework
OUTLOOK (ESOP 2016). effect from the close of business hours of 11 November, 2020. of the company including the development and implementation
Outlook for FY 22 continues to remain uncertain, with onset of During the year, the company made a grant aggregating to Mr. Arun Alagappan, managing director stepped down from board of risk management policy and the key risks faced by the company.
second wave of COVID-19. Apart from agriculture and related 2,13,805 options to 4 employees. The total number of options of the company with effect from end of day 14 February, 2021. CORPORATE GOVERNANCE REPORT
activities, most other sectors of the economy have been adversely issued as on 31 March, 2021 under ESOP 2016 is 35,24,972.
impacted by the pandemic and are expected to show de-growth. The board places on record its deep appreciation for the guidance
ESOP 2007 A report on corporate governance as per the Listing Regulations is
and significant contribution made by Mr. Murugappan and
VF business will continue to be the mainstay for the company. attached and forms part of this report. The report also contains the
Pursuant to the approval accorded by the shareholders at the Mr. Arun Alagappan towards the success of the company during
LAP portfolio has also been a significant contributor to the details as required to be provided on the composition and category
twenty ninth annual general meeting (AGM) of the company held on their tenure.
company's growth and profitability. HL is the rising star and has of directors, number of meetings of the board, composition of the
30 July, 2007 the nomination and remuneration committee had
a great potential to be built into a solid portfolio considering the DECLARATION FROM INDEPENDENT DIRECTORS various committees, annual board evaluation, remuneration policy,
expertise of the company in handling typical customer profiles. formulated an employee stock option scheme 2007 (ESOP 2007).
All the independent directors (IDs) have submitted their declaration criteria for board nomination and senior management appointment,
The company has also collaborated and upgraded in strengthening During the year, there have been no fresh grants under the scheme
of independence, as required pursuant to section 149(7) of the whistle blower policy/vigil mechanism, disclosure of relationships
its digital applications with an aim to reduce physical touchpoint and there have been no changes in the scheme. Number of options
Act, confirming that they meet the criteria of independence as between directors inter-se, state of company’s affairs, etc.
with stakeholders especially in this pandemic situation. The outstanding as on 31 March, 2021 under the ESOP 2007 is 18,820.
company’s robust collection mechanism aided with a strong credit provided in section 149(6) of the Act. In the opinion of the board, The executive director and the chief financial officer have submitted
The schemes are in compliance with Securities and Exchange Board
risk assessment framework will help us steer through the strong the IDs fulfil the conditions specified in the Act and the rules a compliance certificate to the board regarding the financial
of India (Share Based Employee Benefits) Regulations, 2014 (SEBI
currents of the COVID-19 pandemic in FY 22. made there under for appointment as IDs including the integrity, statements and other matters as required under regulation 17(8) of
(SBEB) Regulations) and the Companies Act, 2013 (the Act).
expertise and experience and confirm that they are independent the Listing Regulations.
DIVIDEND
The certificate from the statutory auditors confirming that ESOP 2007 of the management. All the IDs of the company have registered
Dividend distribution policy and ESOP 2016 have been implemented in accordance with the SEBI their names with the data bank of IDs and are in the process of BUSINESS RESPONSIBILITY REPORT
The company has formulated a dividend distribution policy in (SBEB) Regulations and shareholders resolutions has been obtained completion of online proficiency self-assessment test as per the A business responsibility report is attached and forms part of this
compliance with regulation 43A of SEBI (Listing Obligation and and will be available for the shareholders at the ensuing AGM. timeline notified by the Ministry of Corporate Affairs (MCA). report.
37 38
CONSOLIDATED FINANCIAL STATEMENTS As per the provisions of the Act, the company is required to spend As regards investments made by the company, the details of the HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES /
The consolidated financial statement is prepared in accordance
at least 2% of the average net profits of the company made during same are provided under note 10 in standalone financial statements ASSOCIATES
the three immediately preceding financial years. This amount and notes 12 and 45 in consolidated financial statements of the
with the Act and the relevant accounting standards and forms part CHOLAMANDALAM SECURITIES LIMITED (CSEC)
aggregated to ₹ 32.07 crores and the company spent the entire company for the year ended 31 March, 2021.
of this annual report.
₹ 32.07 crores towards CSR activities during FY 21, the details of During the year, CSEC focused on creating three distinct business
AUDITORS DISCLOSURE OF REMUNERATION
which are annexed to and forms part of this report. lines for enhancing revenues and productivity - broking, wealth, and
M/s. S. R. Batliboi & Associates LLP, chartered accountants are The disclosure with respect to remuneration as required under insurance distribution. The broking business grew, wealth business
INTERNAL FINANCIAL CONTROLS section 197 of the Act read with rule 5 of the Companies
the statutory auditors of the company. They were appointed dropped by due to cap on upfront income and insurance distribution
as statutory auditors of the company at the 39th AGM held on Internal control framework including clear delegation of authority (Appointment and Remuneration of Managerial Personnel) Rules, business was scaled up significantly. CSEC achieved a gross income
27 July, 2017 for a period of five years commencing from the and standard operating procedures are established and laid out 2014 is attached and forms part of this report. of ₹ 30.14 crores for the year ended 31 March, 2021 and made a PBT
conclusion of 39th AGM till the conclusion of 44th AGM. The statutory across all businesses and functions. These are reviewed periodically of ₹ 6.84 crores as against a PBT of ₹ 3.27 crores in the previous year.
at all levels. The risk and control matrices are reviewed on a
PARTICULARS OF EMPLOYEES
audit report is attached with financial statement and forms part of The Mutual Fund AUM was at ₹ 967 crores. CSEC did not declare any
quarterly basis and control measures are tested and documented. In accordance with section 136 of the Act, the report and accounts
this report and does not contain any qualification, reservation or dividend during the year. The PBT contribution of CSEC to the overall
These measures have helped in ensuring the adequacy of internal are being sent to the members and others entitled thereto. The
adverse remarks. performance of the company was ₹ 6.84 crores during the year.
financial controls commensurate with the scale of operations of the statement prescribed under rule 5(2) and 5(3) of the Companies
RBI has issued guidelines on 27 April, 2021 for appointment of
company. (Appointment and Remuneration of Managerial Personnel) Rules, CHOLAMANDALAM HOME FINANCE LIMITED (CHFL)
statutory auditors for Banks and NBFCs applicable from second half 2014 is available for inspection. If any member is interested in
The internal financial controls with reference to the financial CHFL recorded a gross income of ₹ 37.15 crores for the year ended
of FY 22 which inter alia mandates appointment of joint auditors
statements were tested and reported adequate. obtaining a copy, such member may send an e-mail to the company 31 March, 2021 and made a profit before tax of ₹ 2.62 crores as
and tenure of the auditors shall be for 3 continuous years. The
secretary in this regard. against a loss of ₹ 0.77 crores in the previous year. CHFL did not
company will be taking necessary steps to comply with the new RELATED PARTY TRANSACTIONS declare any dividend during the year. Currently, the company
RBI guidelines. COMPLIANCE WITH SECRETARIAL STANDARDS ON
The company has in place a policy on related party transactions as continues its focus on growing insurance corporate agency
BOARD AND GENERAL MEETINGS
SECRETARIAL AUDIT approved by the board and the same is available on the website of business.
the company (weblink: https://www.cholamandalam.com/company- The company has complied with all the provisions of secretarial
Pursuant to the provisions of the Act and the rules framed there The PBT contribution of CHFL to the overall performance of the
policies.aspx). standards issued by the Institute of Company Secretaries of India in
under, M/s. R. Sridharan & Associates, company secretaries had company was ₹ 2.62 crores during the year.
respect of meetings of the board of directors and general meetings
undertaken a secretarial audit of the company for FY 21. The All transactions with related parties that were entered into during WHITE DATA SYSTEMS INDIA PRIVATE LIMITED (WDSI)
held during the year.
secretarial audit report is attached and forms part of this report and the financial year were in the ordinary course of business and
WDSI recorded a gross income of ₹ 5.77 crores for the year ended
does not contain any qualification, reservation, or adverse remarks. were on an arm’s length basis. There were no materially significant INTERNAL COMPLAINTS COMMITTEE
31 March, 2021 and made a loss of ₹ 2.30 crores as against a loss of
transactions made by the company with promoters, directors, key The company has in place a policy for prevention of sexual
COST RECORD AND COST AUDIT ₹ 1.35 crores in the previous year. WDSI did not declare any dividend
managerial personnel or other designated persons which may harassment in line with the requirements of the Sexual Harassment
Maintenance of cost records and requirements of cost audit as during the year.
have a potential conflict with the interest of the company at large. of Women at the Workplace (Prevention, Prohibition and Redressal)
prescribed under the provisions of section 148(1) of the Act is not There were no contracts or arrangements entered into with related VISHVAKARMA PAYMENTS PRIVATE LIMITED (VPPL)
Act, 2013 (POSH Act). The company has complied with the
applicable for the business activities carried out by the company. parties during the year to be disclosed under sections 188(1) provisions relating to constitution of internal complaints committee During the year, the Company joined a consortium for retail
ANNUAL RETURN and 134(h) of the Act in form AOC-2. All transactions with related (ICC) under the POSH Act. ICC has been set up to redress complaints payments – Vishvakarma Payments Private Limited (VPPL) that
parties were placed before the audit committee for prior approval received regarding sexual harassment. All employees are covered
In accordance with sections 134(3)(a) and 92(3) of the Act, the annual applied for a New Umbrella Entity (NUE) License for retail payments
at the beginning of the financial year. The transactions entered into under this policy. During the year, the company conducted
return in form MGT-7 is placed on the website of the company and with Reserve Bank of India. VPPL is a Company incorporated in India
pursuant to the approval so granted were placed before the audit workshops for employees creating awareness about POSH Act.
is available on the weblink: https://cholamandalam.com/files/MEDIA/ under the Act. FSS, Zoho, Zerodha, RazorPay, Ujjivan and Airpay
committee for its review on a quarterly basis. None of the directors
Annual-Return-2020-2021.pdf. During the calendar year ended 31 December, 2020, there were no are also part of the VPPL consortium along with the company. The
has any pecuniary relationship or transaction vis-à-vis the company.
referrals received by ICC. company holds 21% of equity share capital of VPPL. The application
CORPORATE SOCIAL RESPONSIBILITY INFORMATION AS PER SECTION 134(3)(m) OF THE ACT for NUE license is pending before RBI.
OTHER DISCLOSURES
The Murugappa group is known for its tradition of philanthropy
During the year under review, the company has no major impact There was no fraud reported by auditors of the company as given ACKNOWLEDGEMENT
and community service. The group’s philosophy is to reach out
on account of conservation of energy or technology absorption. under Section 143(12) of the Companies Act, 2013 (Read with
to the community by establishing service-oriented philanthropic The directors wish to thank the company’s customers, vehicle
Foreign currency expenditure / remittances amounting to Companies (Audit and Auditors) Rules, 2014.
institutions in the field of education and healthcare as the core focus manufacturers, vehicle dealers, channel partners, banks, mutual
₹ 143.57 crores was incurred during the year under review. Foreign
areas. The company upholds the group’s tradition by earmarking a During the year ended 31 March, 2021, the company had made funds, rating agencies and shareholders for their continued
currency remittances made during the year was ₹ 2.65 crores
part of its income for carrying out its social responsibilities. one application amounting to ₹ 1.28 crores under the Insolvency support. The directors also thank the employees of the company
towards purchase of computer equipment. The company does not
and Bankruptcy Code, 2016 (“the Code”). As at 31 March, 2021, for their contribution to the company’s operations during the year
The company has been carrying out corporate social responsibility have any foreign exchange earnings.
total number of applications filed and pending under the Code are under review.
(CSR) activities for many years now even before it was mandated
under the Act. The company has put in place a CSR policy. The policy
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS 12 amounting to ₹ 31.86 crores. No proceeding is pending against On behalf of the board
along with composition of CSR committee and projects approved Being an NBFC, the disclosures regarding particulars of loans given, the company under the Code.
by the board are available on the website of the company (weblink: guarantees given and security provided is exempted under the During the year, the company had not made any one-time Place : Chennai Vellayan Subbiah
https://www.cholamandalam.com/community-relations.aspx). provisions of section 186(11) of the Act. settlement with banks or financial institutions. Date : 7 May, 2021 Chairman
39 40
Directors’ Responsibility Annexure-I

Statement Secretarial Audit Report
for the financial year ended 31 March, 2021
[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 and Regulation 24 A of the SEBI (Listing Obligations and Disclosure Requirements),
Regulations, 2015 as amended]
To b) The Securities and Exchange Board of India (Prohibition of

The Members, Insider Trading) Regulations, 2015;
The board of directors have instituted / put in place a framework of internal financial controls and compliance systems, which is reviewed
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
by the management and the relevant board committees, including the audit committee and independently reviewed by the internal, c) The Securities and Exchange Board of India (Issue of Capital
CIN: L65993TN1978PLC007576,
statutory and secretarial auditors. and Disclosure Requirements) Regulations, 2018 (not
Dare House, No. 2 N S C Bose Road, Parrys, Chennai – 600001
applicable during the period under review);
Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, confirm that:
We have conducted the Secretarial Audit of the compliance
d) The Employee Stock Option Plan, 2016 approved under the
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and that there were no material of applicable statutory provisions and the adherence to good
corporate practices by CHOLAMANDALAM INVESTMENT AND Securities Exchange Board of India (Share Based Employee
departures therefrom;
FINANCE COMPANY LIMITED [Corporate Identification Number: Benefits) Regulations, 2014 and the Employee Stock Option
(ii) they have, in the selection of the accounting policies, consulted the statutory auditors and have applied their recommendations Scheme, 2007 approved under the Securities Exchange
L65993TN1978PLC007576] (hereinafter called “the Company”).
consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of Board of India (Employee Stock Option Scheme and
Secretarial Audit was conducted in a manner that provided us a
affairs of the company as at 31 March, 2021 and of the profit of the company for the year ended on that date; reasonable basis for evaluating the corporate conducts/statutory Employee Stock Purchase Scheme) Guidelines, 1999;
(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of compliances and expressing our opinion thereon. e) The Securities and Exchange Board of India (Issue and
the Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities Based on our verification of the Company’s books, papers, minute Listing of Debt Securities) Regulations, 2008;
(iv) they have prepared the annual accounts on a going concern basis; books, forms and returns filed and other records maintained and
f ) The Securities and Exchange Board of India (Registrars
also the information provided by the Company, its officers, agents
(v) they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate to an Issue and Share Transfer Agents) Regulations, 1993
and authorized representatives during the conduct of secretarial
and were operating effectively during the year ended 31 March, 2021; and regarding the Companies Act and dealing with client;
audit, we hereby report that in our opinion, the Company has,
(vi) proper system has been devised to ensure compliance with the provisions of all applicable laws and that such systems were during the audit period covering the financial year ended on g) The Securities and Exchange Board of India (Delisting of
adequate and operating effectively during the year ended 31 March, 2021. 31st March, 2021 complied with the statutory provisions listed Equity Shares) Regulations, 2009; (not applicable during the
hereunder and also that the Company has proper Board-processes period under review); and
and compliance mechanism in place to the extent, in the manner
h) The Securities and Exchange Board of India (Buyback of
and subject to the reporting made hereinafter:
Securities) Regulations, 2018; (not applicable during the
We have examined the books, papers, minute books, forms and period under review);
returns filed and other records maintained by the Company for
On behalf of the board the financial year ended on 31st March, 2021 according to the (vi) Other laws specifically applicable to the Company are –
provisions of: a) Reserve Bank of India Act, 1934, Rules, Regulations,
Place : Chennai Vellayan Subbiah guidelines, circulars, directions, notifications made
(i) The Companies Act, 2013 (the Act) and the rules made there
Date : 7 May, 2021 Chairman
under; thereunder.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the b) Non-Banking Financial Company – Systemically Important
rules made there under; Non-Deposit taking Company (Reserve Bank) Directions,
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws 2016
framed there under; c) Non-Banking Financial Companies Acceptance of Public
(iv) The Company has complied with the provisions of Foreign Exchange Deposits (Reserve Bank) Directions, 2016
Management Act, 1999 and the rules and regulations made there d) Non-Banking Financial (Non-Deposit Accepting or Holding)
under to the extent of External Commercial Borrowings, Foreign Companies Prudential Norms (Reserve Bank) Directions,
Direct Investment and Overseas Direct Investment during the year
2007
under review.
e) NBFC Auditors Report Reserve Bank Directions, 2008
(v) The following Regulations and Guidelines prescribed under the
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):- f ) Guidelines for Asset – Liability Management (ALM) system
a) The Securities and Exchange Board of India (Substantial in NBFC’s
Acquisition of Shares and Takeovers) Regulations, 2011; g) NBFC Public Deposits RBI Directions 1998
41 42
Annexure-II
We believe that the audit evidence which we have obtained is Further, the Circulars, Regulations and Guidelines issued by the
sufficient and appropriate to provide a basis for our audit opinion. Ministry of Corporate Affairs, Securities and Exchange Board of India
In our opinion and to the best of our information and according and other relevant regulatory authorities in view of the pandemic
to explanations given to us, we believe that the systems and
CSR Report
pertaining to Board/ Committee meetings, General Meetings
mechanisms established by the Company are adequate to ensure
and other provisions of the Act, Rules and Regulations have been
compliance of laws as mentioned above. With respect to the
complied with by the Company.
applicable financial laws such as Direct and Indirect tax laws, based
on the information & explanations provided by the Management
Annual Report on Corporate Social Responsibility (CSR) Activities:
Based on the verification of the records and minutes, the decisions
and Officers of the Company and certificates placed before the
were carried out with the consent of the Board of Directors /
Board of Directors, we report that adequate systems are in place to 1. Brief outline on CSR Policy of the Company. welfare activities for the communities at large, especially the
Committee Members and no Director / Member dissented on the
monitor and ensure compliance.
decisions taken at such Board / Committee Meetings. Further, in the Cholamandalam Investment and Finance Company Limited
trucker community. Among various welfare activities undertaken,
We have also examined compliance with the applicable clauses / Chola provided 3000 PPE kits and protection gear to health workers
minutes of the General Meeting, the number of votes cast against (Chola) has been able to make a difference in the lives of the
regulations of the following: and frontline police force. The Company supported the treatment
the resolutions has been recorded. community through its various CSR initiatives. Company believes
(i) Secretarial Standards with respect to Meetings of Board of of patients infected with COVID-19, especially children belonging
We further report that based on the review of compliance that sustainable development promotes economic growth, greater
Directors (SS-1) and General Meetings (SS-2) issued by the to poor Socio Economic sections of society. Chola ran awareness
Institute of Company Secretaries of India. mechanism established by the Company and on the basis of our social well‐being, and protection of the environment. The CSR
activities of the Company have evolved over the years through campaigns on hand hygiene and social distancing across
(ii) The Uniform Listing Agreement entered into with BSE Limited review and audit of the records and books, we are of the opinion
its multi-stakeholder engagement programmes benefiting the 12 locations in the country (Mumbai, Kanpur, Chennai, Bengaluru,
and National Stock Exchange of India Limited pursuant to that the management has adequate systems and processes
Jamshedpur, Paradip, Kolkata, Indore, Ahmedabad, Betia and
the provisions of the SEBI (Listing Obligations and Disclosure commensurate with its size and operations, to monitor and community at large.
Requirements) Regulations, 2015. Jaipur). Chola contributed an aggregate sum of ` 5.48 crores to PM
ensure compliance with all applicable laws, rules, regulations and CSR projects in Chola are sustainable by nature and not a onetime
Cares Fund and Tamil Nadu State Disaster Relief Fund during the
During the period under review, the Company generally has guidelines. activity. These projects are implemented across the operating
year to aid the fight against COVID.
complied with the provisions of the Act, Rules, Regulations, geographies including the rural community across India. Our
We further report that the above mentioned Company being a
Guidelines, Standards, etc. issued by the Ministry of Corporate Education
listed entity this report is also issued pursuant to Regulation 24A of efforts are directed towards offering the best path forward for
Affairs, Securities and Exchange Board of India and such other
regulatory authorities for such acts, rules, regulations, standards SEBI (Listing Obligations and Disclosure Requirements) Regulations, helping people and communities to Enter a Better Life. Chola has been instrumental in ensuring quality education to
etc. as mentioned above. 2015 as amended and circular No.CIR/CFD/CMD1/27/2019 dated children through its various projects / initiatives. These efforts
Chola’s CSR activities cover major themes like Preventive Health
8th February, 2019 issued by Securities and Exchange Board of India. contribute towards better access and material to students, reduce
We have not verified the correctness and appropriateness of Care, Providing Water and Sanitation, Promoting Education,
financial records and Books of Accounts of the company. dropout rate and broaden vision building. The education initiatives
We further report that as per the information and explanations Protecting Environment, Conservation of Natural Resources,
undertaken by the company are diverse and vary as per the need
We further report that provided by the Management, the Company does not have any Conservation of Art and Culture, Promotion of Sports, Encouraging
from location-to-location and community-to-community.
The Board of Directors of the company is duly constituted with Material Unlisted Subsidiary (ies) Incorporated in India as defined in Technology Incubators and Rural Development Projects across 16
proper balance of Executive Director, Non-Executive Directors, Regulation 16(1)(c) and Regulation 24A of SEBI (Listing Obligations states and one Union Territory. As part of the Financial Literacy program, Chola reached out
Woman Independent Director and Independent Directors. The and Disclosure Requirements) Regulations, 2015 during the period to 14160 Truck Drivers, Mechanics and Cleaners and their
Uplifting the lives of the community has always been the core belief
changes in the composition of Board of Directors that took place Families especially women to make them aware of Income and
under review. system behind all projects under Chola’s CSR programme. Chola
during the period under review were carried out in the compliance
expenditures, banking systems, importance of saving practices,
with the provisions of the Act, RBI and listing regulations. We further report that during the audit period, the Company has has taken a holistic approach to the well-being of the trucking
digital transactions and financial planning in a series of sessions at
Adequate notice is given to all directors before schedule of the community by focusing on General Health, Eye Health, Child
1. Issued secured redeemable non-convertible debentures for 2 blocks of Kutch District, Gujarat (Bhuj, Anjar/Gandhidham).
Board Meetings, agenda and detailed notes on agenda were sent Health, Education with scholarships, Financial literacy, Water and
`5795 Crores and unsecured redeemable non-convertible
at least seven days in advance and a system exists for seeking and Sanitation Facilities. Chola supports the Murugappa Polytechnic College that imparts
debentures for `145 Crores (PDI).
obtaining further information and clarifications on the agenda quality education and training of international standards in
Company’s Strategic Directions
items before the meeting and for meaningful participation at the 2. Redeemed secured redeemable non-convertible debentures engineering and technology through continuous improvement,
meeting. Notice for meetings called for at a shorter notice and for ` 2219 Crores and unsecured redeemable non-convertible With a vision to engage and enable people ‘Enter a Better Life’,
teamwork, growth and innovation. It offers courses in Civil
notes on agenda which are circulated less than the specified period, debentures for ` 346.50 Crores. Chola has always strived to improve and develop lives by being a
Engineering, Computer Engineering, Electrical Engineering,
necessary compliances under the Act and Secretarial Standards on For R. Sridharan & Associates responsible corporate citizen. Some of the key focus areas where
Board Meeting are complied with. Electronics and Communication Engineering and Mechanical
Company Secretaries
development programs have been initiated in FY 21 are as follows: Engineering.
During the year under review, directors have participated in the
CS. R. Sridharan Disaster Management
committees/board meetings interalia through video conferencing, Chola in partnership with Women Organization for Rural
CP No. 3239
such meetings were properly convened and recorded in compliance FCS No. 4775 The COVID-19 Pandemic has adversely affected lives and livelihoods Development (WORD) has been running the “My Dream
with the provisions of Section 173 (2) of the Act read with Rule 3 Place : Chennai UIN : S2003TN063400 of people across all segments. Due to the rapid spread and sustained Scholarship Program” for children from the trucker’s community
& 4 of Companies (Meetings of Board and its Powers) Rules, 2014. Date : May 7, 2021 UDIN: : F004775C000249734
lockdowns imposed in different parts of the country, Chola had during the past two years in Namakkal and the surrounding
to suspend all its field operations such as, its Vision Centres, Eye districts in Tamilnadu. Under a similar program in partnership with
Camps, and Surgeries etc. During the pandemic, Chola supported PRAYAS, Chola also supports children from the trucking community
43 44
in Kishangarh, Jaipur in Rajasthan. The current COVID situation and pick-up at their preferred location. Company’s approach to trucker’s 3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on
the subsequent lockdown and travel restrictions have resulted eye health is pertinent – exploring what interventions work to the website of the company.
in loss in jobs and a cash crunch for many of these truckers and provide eye health services to the most vulnerable and mobile - https://www.cholamandalam.com/community-relations.aspx
it has been a very challenging period for them. Many students groups in the community. 4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies
discontinue their studies after class 10 and 12 due to want of funds. (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
In India, 9/1000 children are born with Congenital Heart Diseases
This scholarship enables such children to continue their higher
(CHD) and it is estimated that over 240,000 children are born
education with the help of the scholarship. Chola believes that in Sl. Name of Implementing Financial About the Project Objective Findings
with CHD each year. There are approximately 60 centers that No. the project Partner Agency year
supporting such children from the trucking community enables
cater to children with congenital heart disease. Causes of CHD (IPA)
them to dream bigger and helps them find a footing in the world.
are multifactorial, both Genetic & Environmental. Various studies 1 Raahi Royal FY 19-20 The Raahi programme Increase reach to 1. 63% of the beneficiaries are
In FY 21, Chola has provided scholarships to 120 students in courses Commonwealth is designed around eyecare services among wearing the glasses provided to
highlight that the incidence of CHD is higher among lower income Society for the high intensity the trucker community. them.
of IT, Nursing, ITI etc.
families and these children do not get diagnosed timely, leading the blind aka points along Golden Ensure that refractive 2. 25% of the beneficiaries are
In addition, Chola has been supporting Educational Trusts such Sightsavers India Quadrilateral, which error and referral using the glasses all the time
to higher morbidity and mortality. Healing Little Hearts- It is an
as the AID India Foundation, Nalandaway and Isha Vidya as well is a national highway services are delivered and 41% of them are using while
initiative by Chola in partnership with Sree Sathya Sai Sanjeevani network connecting on time. driving.
over the past 6 years for providing quality education and access to many of the major
Hospitals. “Healing Little Hearts” supported surgeries of 100 Coordinate regular 3. The details of each beneficiary
economically backward sections of the society. industrial, agricultural
children connected to families of road transport industry suffering follow-up with the are digitally maintained. For
and cultural centres of
Health beneficiary. those who have refractive error
from Congenital Heart Disease (CHD) last year. They could be India. Chola has installed
Maintain the issues, the prescribed lenses are
Vision centers at 12 such
India has a large trucking population estimated at 5-6 million drivers children of drivers, cleaners, mechanics of large, medium and small compliance standards delivered within nine days.
locations in the country.
and helpers, and about 2-2.5 million are classified as long-distance trucking industry or goods carrier vehicles and mini trucks. They can of eye care distribution.
drivers. Truck drivers in India have to travel long distances in their be from any state in India. The complete treatment for Congenital 2 The Gift of life Sri Sathya Sai FY 19-20 To support the expenses The estimated number The beneficiaries include children
Health and of surgeries of the of children born with of 35 truck drivers, 14 taxi drivers,
lifetime, on an extensive spread of National and State highways Heart Disease (CHD) has been provided totally free of cost to the Education Trust children with Congenital congenital heart 3 bus drivers, 2 mechanics and
that range from well-engineered roads to a complete absence of beneficiaries under this program. Heart Disease, of families disease in India is 3 manual labours, who were
concrete roads. Their occupation predisposes them to a multitude who are connected more than 200,000 per benefited from this initiative.
Access to clean drinking water to the Road Transport year. Of these, about
of risk factors such as prolonged sitting and motor vehicle driving, The success rates of the surgeries
Sector in India. one-fifth children are are high and the children are
tight running schedules, reduced rest breaks, traffic congestion, the Access to safe drinking water still remains a major problem for most likely to have serious living a healthier life.
sedentary nature of job, and resultant physical, psychological and of the rural poor communities. While some communities lack access health issues, requiring
a surgical intervention
behavioral problems. All this affects the health status of the drivers to water facilities; some others face water contamination problems.
in the first year of
and results in a large number of road accidents on the highways. Excess fluoride in the majority of the water sources in rural areas life. Chola to support
is leading to dental and skeletal fluorosis. Water contamination surgeries for children
Chola launched RAAHI in October 2017, one of the Country’s diagnosed with CHD.
biggest Eye Health Programmes for the truck drivers’ community for is a huge problem in slum areas due to age old pipelines, mix of
3 AMM AMM Foundation FY 19-20 Murugappa Polytechnic To revamp the 1. Dedicated sports areas were
reaching out to 150,000 truckers with the prime focus to minimize water with sewer drains etc., leading to multiple health issues such Polytechnic College was established structures and create setup.
as diarrhoea, typhoid, skin diseases, and joint pains etc. Under the college in August 1957 as a more avenues for 2. Established laboratories where
road accidents. The programme has geographically evolved with government-aided effective utilisation of promising technologies can
30 locations operational currently falling on and around the golden access to clean water project, Chola worked with villages in Odisha polytechnic college space in the college. be tested. This multi-faceted,
and Telangana and extended interventions by providing purified in memory of Dewan To bring in additional
quadrilateral route in India. The key strength of the programme one-of-a-kind centre provides
Bahadur A.M. Murugappa sports facilities for the
is real time based data management which allows truckers to drinking water facilities for villages and schools. Chola installed Chettiar. The institution students with professional growth
students. workshops, internships, R&D
receive eye screening services at one location and spectacle ultra filtration water plants in 22 villages of Telangana. is affiliated with the
Tamil Nadu State Board support, and industrial consulting
of Technical Education services in a variety of fields.
2. Composition of CSR Committee (as on March 31, 2021):
and is located on a
Sl. Name of the Director Designation / Number of meetings of Number of meetings of 12.5 hectare campus in
No. Nature of Directorship CSR Committee held CSR Committee attended Chennai. The vision of
the institute is to be a
during the year during the year
world class institution
1 Mr. Vellayan Subbiah Non-executive / Promoter 2 1* by imparting quality
Director / Chairman education & training
of international
2 Ms. Bhama Krishnamurthy Non-executive / Independent 2 2 standards in engineering
Director and technology
through continuous
3 Mr. M.A.M. Arunachalam Non-executive / Promoter 2 1* improvement, team
Director work, growth and
* During their tenure as members, one meeting was held and the members have attended the same. innovation.
45 46
Sl. Name of Implementing Financial About the Project Objective Findings SN. Name of the Item Location of
Local Project Amount Amount Amount Mode Mode of
No. the project Partner Agency year Project the project
from the area duration allocated spent in trans- of Implementation -
list of for the the -ferred Imple- Through Implementing
(IPA) Agency
activities project current to -mentation
4 Infrastructure AMM Foundation FY 19-20 Ivan Stedeford hospital To upgrade the existing As a part of phase IV development in (` in financial Unspent - Direct
support to was built in the year 1966. buildings and construct - following blocks were revamped Schedule lakhs) Year CSR (Yes/No)
Sir Ivan Due to the increasing new blocks that would - New Operation Theatre Complex VII to (` in Account
Stedeford number of patients and permit delivery of all - Casualty Treatment Center the Act Yes/ State District lakhs) for the Name CSR
No project Regis-
Hospital in keeping with the multi-specialty medical - ICU and Step Down ICU
as per -tration
requirement to deliver services. - Ophthalmology Ward section number
quality patient care, it 135(6)
was decided to upgrade (` in
lakhs)
the existing buildings and
construct new blocks that 3 Support the Sports Yes Tamil Chennai 12 27.71 27.71 Nil No AMM CSR
would permit delivery training cost of Nadu months Foundation 00000050
of all multi-specialty Murugappa Youth
medical services. Football Academy
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility 4 Support Education Yes Tamil Chennai 12 150.58 150.58 Nil No AMM CSR
Policy) Rules, 2014 and amount required for set off for the financial year, if any - Nil Murugappa Nadu months Foundation 00000050
6. Average net profit of the company as per section 135(5) - ` 1,60,341.67 lakhs polytechnic
college
7. (a) Two percent of average net profit of the company as per section 135(5) - ` 3,206.83 lakhs
5 Provide Rural Health Yes Assam Guwa 12 35.00 35.00 Nil No AMM CSR
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years - Nil community with a hati months Foundation 00000050
(c) Amount required to be set off for the financial year, if any - Nil Mobile Health Van
6 Various health Health Yes Tamil Chennai 12 429.67 429.67 Nil No AMM CSR
(d) Total CSR obligation for the financial year (7a+7b-7c) - ` 3,206.83 lakhs
Development Nadu months Foundation 00000050
8. (a) CSR amount spent or unspent for the financial year: project
Total Amount Amount Unspent (in `) 7 Support Education Yes Tamil Chennai 12 21.75 21.75 Nil No AMM CSR
Spent for the Murugappa Nadu months Foundation 00000050
Financial Year Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Science Centre
(in `) Account as per section 135(6) Schedule VII as per second proviso to section 135(5) in Palathur
Amount Date of transfer NA Amount Date of transfer 8 Support AMM Education Yes Tamil Chennai 12 17.21 17.21 Nil No AMM CSR
Foundation Mobile Nadu months Foundation 00000050
3,207.48 lakhs Nil NA NA Nil NA science lab in
(b) Details of CSR amount spent against ongoing projects for the financial year: Not applicable Sivagangai and
Pudukkottai
(c) Details of CSR amount spent against other than ongoing projects for the financial year: 9 Scholarship Arts and Yes Tamil Chennai 12 10.00 10.00 Nil No India
support to Crafts Nadu months Foundation
SN. Name of the Item Location of
Implementation - promote arts for the
Project the project
from the area duration allocated spent in trans- of
list of for the the -ferred Imple- Through Implementing related higher Arts
activities project current to -mentation Agency studies
in (` in financial Unspent - Direct
Schedule lakhs) Year CSR (Yes/No) 10 COVID-19 Disaster Yes Tamil Chennai 12 25.00 25.00 Nil No Indian CSR
VII to (` in Account Containment- Face manage- Nadu months Institute of 00004320
the Act Yes/ State District lakhs) for the Name CSR Shield for Police -ment Technology
No project Regis-
as per -tration men and Health -Madras (IIT-M)
section number workers in
135(6) Chennai
(` in
lakhs) 11 Chola –Sightsavers Disaster Yes Pan Chennai 12 19.40 19.40 Nil No Royal Common CSR
1 Infrastructure Health Yes Tamil Chennai 12 365.69 365.69 Nil No AMM CSR COVID -19 Project manage- India months wealth Society for 00001381
support to expand Nadu months Foundation 00000050 -ment the Blind aka
Sir Ivan Stedeford Sightsavers India
Hospital Phase- III 12 PM Cares Fund Disaster Yes Pan Chennai 12 248.00 248.00 Nil No PM Cares
2 Supporting Health Yes Tamil Chennai 12 138.00 138.00 Nil No AMM CSR manage- India months Fund
Valliammai Achi Nadu months Foundation 00000050 -ment
hospital in its Out
13 Tamil Nadu Disaster Yes Tamil Chennai 12 300.00 300.00 Nil No Tamil Nadu
Patient Care
-State Disaster manage- Nadu months -State Disaster
Relief Fund -ment Relief Fund
47 48

Local Project Amount Amount Amount Mode Mode of SN. Name of the Item Location of
Project the project
from the area duration allocated spent in trans- of Implementation - Project the project
list of for the the -ferred Imple- Through Implementing list of for the the -ferred Imple- Through Implementing
activities project current to -mentation Agency activities project current to -mentation Agency
in (` in financial Unspent - Direct in (` in financial Unspent - Direct
Schedule lakhs) Year CSR (Yes/No) Schedule lakhs) Year CSR (Yes/No)
VII to (` in Account VII to (` in Account
the Act Yes/ State District lakhs) for the Name CSR the Act Yes/ State District lakhs) for the Name CSR
No project Regis- No project Regis-
as per -tration as per -tration
section number section number
135(6) 135(6)
(` in (` in
lakhs) lakhs)
14 Containment of Disaster Yes Tamil Chennai 12 100.00 100.00 Nil No Child Trust CSR 24 Chola - Sightsavers Health Yes Pan Pan 12 180.45 180.45 Nil No Royal Commnwealth CSR
COVID-19 Project manage- Nadu months Medical and 00002494 Eye Health Project India India months Society for the Blind 00001381
-ment Research aka Sightsavers
Foundation (CTMRF) India
15 Arts in Education Education Yes Tamil Chennai 12 16.22 16.22 Nil No Nalandaway CSR 25 SAKSHAM-Truckers Health Yes Rajas- Jaipur 12 31.29 31.29 Nil No Association for Rural CSR
Project Nadu months 00001780 Eye Health -than months Advancement 00000735
16 Scholarship Education Yes Tamil Chennai 12 13.06 13.06 Nil No Women CSR Program under through Voluntary
Program for Nadu months Organization for 00002346 Truckers Action and Local
trucking Rural Development community Liveli Involvement
community (WORD) hood Streng (ARAVALI)
Children – TN thening project
17 My Dream Chola- Education Yes Rajas- Jaipur 12 16.73 16.73 Nil No Association for CSR 26 Chola -Streng Health Yes Chhatti- Raipur 12 45.00 45.00 Nil No Sri Satya Sai CSR
Scholarship for -than months Rural Advancement 00000735 thening Maternal -sgarh months Sanjeevani Hospitals 00001048
Health Project
Truckers through Voluntary
community Action and Local 27 Choladitya Mobile Health Yes Maha- Mumbai 12 38.00 38.00 Nil No Aditya Jyot CSR
children to kindle Involvement Health care Project -rashtra months foundation 00002697
their dreams (ARAVALI) 28 Cancer treatment Health Yes Tamil Chennai 12 2.59 2.59 Nil No Tiara Haemophelia CSR
Project for Children Nadu months and Cancer 00000448
18 Support Under Education Yes Rajas- Jaipur 12 2.36 2.36 Nil No Vidya CSR Project Foundation
privileged Children -than months Bhawan 00003180 29 SAKSHAM-Truckers Health Yes Rajas- Jaipur 12 37.94 37.94 Nil No Association for Rural CSR
19 Chola- Eureka Education Yes Tamil Chennai 12 9.87 9.87 Nil No AID India CSR Eye Health -than months Advancement 00000735
school Infrastruc- Nadu months 00000027 Program under through Voluntary
Truckers comm Action and Local
-tural development
unity Livelihood Involvement
project- Computer
Strengthening (ARAVALI)
Laboratory
project
20 Multi-Dimensional Education Yes Tamil Chennai 12 8.47 8.47 Nil No United Way CSR
30 Cholamandalam- Health Yes Pan Pan 12 120.00 120.00 Nil No Sri Sai CSR
Learning Program Nadu months Chennai 00000572
The gift of life India India months Sanjeevani 00001048
in Govt School-
phase II
Science Lab
21 My dream Education Yes Tamil Salem 12 59.45 59.45 Nil No Women CSR 31 Swasthya Odisha Health Yes Odisha Cuttack 12 51.56 51.56 Nil No Women Education CSR
Gram Vikash months and Environment 00000911
Scholarship Nadu months Organization for 00002346
Project Phase - IV
program Phase -III Rural Development
(WORD) 32 Rural development Rural Yes Tamil Chennai 12 1.06 1.06 Nil No Sri Varadha
initiative in Develop- Nadu months Anjaneyar
22 Chola-Equestrian Environ- Yes Tamil Chennai 12 32.00 32.00 Nil No Madras
Vandavasi taluk -ment Alaya Trust
Sports Develop- -ment Nadu months Race Club
of Tiruvannamalai
-ment Project
district, Tamil Nadu.
23 Chola-NCF Environ- Yes Laksha- Laksha- 12 24.58 24.58 Nil No Nature Conservation CSR
33 Soft Skills Training Education Yes Tamil Chennai 12 40.00 40.00 Nil No Indian Institute of CSR
Environment -ment -dweep -dweep months Foundation (NCF) 00001665
for NPTEL Toppers Nadu months Technology 00004320
Sustainability
-Madras (IIT-M)
Project
49 50

Local Project Amount Amount Amount Mode Mode of (g) Excess amount for set off, if any-
Project the project
list of for the the -ferred Imple- Through Implementing Sl. No. Particulars Amount (in `)
activities project current to -mentation Agency
in (` in financial Unspent - Direct (i) Two percent of average net profit of the company as per section 135(5) 3,206.83 lakhs
Schedule lakhs) Year CSR (Yes/No)
VII to (` in Account
(ii) Total amount spent for the Financial Year 3,207.48 lakhs
the Act Yes/ State District lakhs) for the Name CSR (iii) Excess amount spent for the financial year [(ii)-(i)] 0.65 lakhs
No project Regis-
as per -tration (iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any -
section number
135(6) (v) Amount available for set off in succeeding financial years [(iii)-(iv)] -
(` in
lakhs) 9. (a) Details of Unspent CSR amount for the preceding three financial years: Nil
34 SwacchaTelangana WASH Yes Telan- Osmana- 12 49.60 49.60 Nil No Bala Vikasa Social CSR (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): Nil
Project Phase-III -gana -bad months Services Society 00000313
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in
35 Community Toilet WASH Yes Tamil Chennai 12 3.34 3.34 Nil No Rotary Club of
the financial year (asset-wise details) - Nil
at Vengampakkam Nadu months Madras Temple City
(a) Date of creation or acquisition of the capital asset(s).
36 Swachh Poondi WASH Yes Tamil Chennai 12 55.95 55.95 Nil No Voice CSR
Lake Project Nadu months Foundation 00000951 (b) Amount of CSR spent for creation or acquisition of capital asset.
Phase II (c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.
37 Accessible school- Education Yes Tamil Chennai 2 0.25 0.25 Nil No AID India CSR
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset).
Kolappanchery Nadu months 00000027
38 Supply of Clean WASH Yes Tamil Chennai 12 6.20 6.20 Nil No United Way CSR 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) – Not applicable
Drinking Water at Nadu months Chennai 00000572
Teynampet Police
Station
39 Research and Rural Yes Tamil Chennai 12 108.75 108.75 Nil No Shri AMM CSR On behalf of the board
Development on Develop- Nadu months Murugappa 00000057
nutritional food/ -ment Chettiar Research
supplements for Centre, Chennai
Place : Chennai Ravindra Kumar Kundu Vellayan Subbiah
rural communities (MCRC) Date : 7 May, 2021 Executive Director Chairman - CSR Committee
40 Research and Environ- Yes Tamil Chennai 12 171.01 171.01 Nil No Shri AMM CSR
Development of -ment Nadu months Murugappa 00000057
Sustainable Chettiar Research
Agricultural Centre, Chennai
Practices for Small (MCRC)
Land Holding
Farmers
41 Studies on Environ- Yes Pan Pan 12 26.01 26.01 Nil No Shri AMM CSR
bio-diversity and -ment India India months Murugappa 00000057
Climate Chettiar Research
Centre, Chennai
(MCRC)
42 Studies on Bio Environ- Yes Pan Pan 12 112.01 112.01 Nil No Shri AMM CSR
energy from agro -ment India India months Murugappa Chettiar 00000057
and other wastes Research Centre,
Chennai (MCRC)
43 Administration 55.70 55.70 Nil
Expenses
Total 3207.48 3207.48
(d) Amount spent in Administrative Overheads - ` 55.70 lakhs

(e) Amount spent on Impact Assessment, if applicable - Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e) - ` 3,207.48 lakhs
51 52
Annexure-III Nature of Disclosure

d) Number of permanent employees 7,620
on the rolls of company (as of
Particulars
Information under section 197(12) of the Companies Act, 2013 read with 31 March, 2021)
Rule 5 of the Companies (Appointment and Remuneration of Managerial e) Average percentile increase already
made in the salaries of employees
For employees other than managerial personnel who
were in employment for the whole of FY 20 and FY 21,
Personnel) Rules, 2014 and forming part of the board’s report for the year other than the managerial personnel the average increase is 8.21%. The average increase for
ended 31 March, 2021 in the last financial year and its

comparison with the percentile
managerial personnel is 8.19%.
increase in the managerial

remuneration and justification
Nature of Disclosure Particulars thereof and point out if there are
any exceptional circumstances
a) Ratio of the remuneration of each Name of the Director / Designation % increase of Ratio of for increase in the managerial
director to the median remuneration Remuneration in Remuneration to
remuneration
of the employees of the company for 2021 as compared Median
the financial year to 2020# Remuneration of f ) Affirmation that the remuneration is The remuneration is in line with the remuneration policy
employees
as per the remuneration policy of the of the company.
Non-Executive Directors
company
Mr. Vellayan Subbiah, Non-executive Director / Chairman NA NA
Mr. Ashok Kumar Barat, Non-executive / Nil 1.82:1
Note:
# Commission/Remuneration figures have been annualised.
Mr. N. Ramesh Rajan, Non-executive / Nil 2.19:1
l Remuneration to directors does not include sitting fees paid to them for attending the meetings.
Mr. Rohan Verma, Non-executive / Nil 1.82:1
Independent Director On behalf of the board
Ms. Bhama Krishnamurthy, Non-executive / Nil 1.82:1
Independent Director Place : Chennai Vellayan Subbiah
Mr. M.A.M. Arunachalam, Non-executive / NA 1.82:1
Additional Director
Mr. Anand Kumar, Non-executive / Independent / NA 1.82:1
Additional Director
Mr. Bharath Vasudevan, Non-executive / Independent / NA 1.82:1
Additional Director
Mr. M.M. Murugappan, Non-executive Director / Nil 1.82:1
Chairman (Up to 11 November, 2020)
Executive Directors
Mr. Ravindra Kumar Kundu, Executive Director 10.38% 39.82:1
Mr. Arun Alagappan, Managing Director
(Up to 14 February, 2021) 13.85% 69.76:1
b) Percentage increase in remuneration Name of the KMP / Designation % increase

of Chief Financial Officer and in remuneration in
Company Secretary in the financial 2021 as
compared to 2020
year
Mr. D. Arul Selvan, Chief Financial Officer 8.36
Ms. P. Sujatha, Company Secretary 5.83
Percentage increase in median 10% increase in median remuneration

c)
remuneration of employees in the
financial year
53 54
Management Discussion
COVID-19 impact in rural areas. The momentum is expected to avail debt recovery under SARFAESI from ₹ 50 lakhs to ₹ 20 lakhs
continue in FY 22 with a moderate growth of 5% to 10% (due to a will aid recoveries of NPAs by NBFCs.
high base effect) aided by a normal monsoon healthy crop output,
The above outlook is subject to COVID-19 second wave abating
and Analysis
and increased government spend on development activities.
soon.
Two-wheeler industry had a de-growth of 13% in FY 21 due to
BUSINESS ANALYSIS
higher inflation levels and reduced discretionary spending. The
industry is expected to grow at around 10% to 15% in FY 22 on a VEHICLE FINANCE
severely contracted base.
The vehicle finance (VF) disbursements during the year were
LOAN AGAINST PROPERTY ₹ 20,249 crores as against ₹ 23,387 crores in the previous year with a
de-growth of 13% primarily due to drop in industry volumes across
MACROECONOMIC OVERVIEW 7.2% during FY 21. Mining and quarrying output expected to The MSME community was impacted majorly during the first half of
segments caused by the COVID-19 pandemic. The VF division was
contract by 8.5%. Among services sectors, trade, hotel, transport is FY 21. However, introduction of targeted initiatives by Government
The financial year 2020-21 began with unprecedented disruptions able to grow in the tractor and construction equipment segment
expected to contract 18.2%. Despite rising crude oil and auto fuel and RBI viz. Emergency Credit Line Guarantees Scheme (ECLGS),
to lives and livelihood across the world and India was no exception. over last year by 46% and 34% respectively. The PBT during the year
prices in India Consumer Price Inflation (CPI) for 2021 is expected moratorium and restructuring helped MSMEs to rebound in
A stringent nationwide lockdown was imposed in India during was ₹ 1,287 crores as against ₹ 945 crores in the previous year. The
to be at 4.9% and to 5.1% for 2022. World Bank has pegged GDP the second half of FY 21 and is expected to continue providing
the initial phase of the pandemic in March-June 2020. The impact VF division continued its focus on maintaining asset quality through
growth of India at 8.3% given the COVID-induced uncertainty from momentum in FY 22 as well.
of pandemic and lockdown was disproportionately felt across an aggressive collection strategy, which helped in restricting gross
industries. The pandemic posed unprecedented dilemma before second wave which started in mid-February 2021. India’s FY 22 GDP growth is expected to bounce sharply in double stage 3 assets to 3.08% though it was a challenging year due to
policymakers – lives vs livelihoods and flattening the twin curves Source: RBI, NSO (MOSPI) digits as per various economic forecast reports and this augurs well a stressed macro-economic environment which had impacted
of pandemic and the resultant recession. India experienced first for the MSME industry in general. Banks & Non-Banking Finance customer cash flows.
INDUSTRY GROWTH PROSPECTS Companies (NBFCs) are well placed to capitalise on the expected
economic recession in 4 decades. Indian economy shrunk by 24.4% The VF business has more than 80% of branches in the rural areas,
in Q1 FY 2020-21. MSME growth in FY 22. Most of the players in Loan Against Property
AUTO INDUSTRY towns and semi urban areas which gives a clear advantage to
(LAP) were cautious in terms of disbursements in FY 21 and this
However, the year 2020 was a year of crisis and opportunities capitalise the rebound in rural demand in terms of tractor, two-
The auto industry was hit badly in FY 21, coupled with the structural scenario is expected to change in FY 22. As per ICRA sectoral outlook
for Indian industries. Gradual lifting of lockdown and easing of wheeler and passenger vehicle business. Any uptick in the demand
slowdown which was already prevailing in the segment. This has report 2022, NBFC growth is expected to revive in FY 22 to 7-9%.
movement restrictions, pent-up and festive demand, and revival for small commercial vehicle and light commercial vehicle will help
pushed back the industry by many years. NBFCs with healthy portfolio mix of low average ticket size and Self-
of several infrastructure projects by Government helped the the business in garnering greater market share due to its presence
Occupied Residential Properties (SORP) asset class are placed in
manufacturing and construction sectors to bounce back stronger. The domestic commercial vehicle industry closed FY 21 with a 21% in rural areas. Chola is one of the largest players in used vehicle
better position to grow substantially.
RBI, akin to other central banks across the globe sprang into action de-growth after recording a 29% negative growth in FY 20 which financing with a disbursement mix of 27% in this segment which
for supporting the economy. RBI cut repo rate by 75 bps to 4.4% is predominantly on account of the disruption in sales due to Source: OECD, Fitch will enable us to balance the portfolio effectively and generate
in March 2020 and subsequently by another 40 bps to 4% in lockdown restrictions, negative customer sentiments and economic disbursement volumes during these challenging times.
HOME LOANS
May 2020 and since then it remains at 4%. Moratorium was offered slowdown. Medium and heavy commercial vehicles (MHCV’s) The business has enhanced the support for digital connectivity and
to borrowers for a period of 6 months to support them from impact recorded a 22% de-growth, light commercial vehicles (LCV’s) at 18% The Indian Housing Finance market is estimated at about ₹ 23 lakh continues its focus on productivity. A host of cyber security initiatives
of COVID and related lockdown. RBI also reduced cash reserve ratio de-growth and small commercial vehicles (SCV’s) at 25 de-growth. crores and grew at around 1-2% in FY 21. In terms of ticket size, the have been implemented to ensure uninterrupted operations during
by 100 bps and undertook Long Term Repo Operations (LTROs) Sale of domestic commercial vehicles is expected to grow in FY 22 sub 25 lakhs segment contributes more than 45% of the mortgage COVID-19 lockdown even while working remotely. The business
with banks. Calibrated fiscal and monetary support was provided, after two consecutive years of volume contraction supported by outstanding. The growth in the affordable housing finance continues to capitalize on its people, process, and technological
cushioning the vulnerable during the lockdown and boosting the low base and expectation of improved economic activity from segment continued to out-pace the housing sector. The demand capabilities to maximize returns on assets (ROA). Industry leading
consumption and investments once lockdown was progressively second half of FY 22. However the full impact of the second wave was subdued through FY 21 and green shoots began to emerge by domain experts and strategy consulting firms have been engaged
withdrawn. A favourable monetary policy ensured abundant of COVID-19 and its recovery is still not known. The vaccination Q3 FY 21. Analysts expect the Housing Sector to grow 6-10% in to create a highly productive workforce leveraging the digital credit
liquidity and immediate relief to debtors while unclogging drive and control of COVID-19 spread in the first two quarters is very FY 22 and Affordable housing to grow at 12-15% in the same period. underwriting process, cost effective collections process and digital
monetary policy transmission. critical for a positive growth trajectory in sales volumes in FY 22. The lockdown significantly impacted repayments especially in backend operations. The company has designed a multi-pronged
The Government of India provided COVID-19 Stimulus Package of marginal communities and self-employed semi-formal segments. long-term strategy to minimize the cost of operations and credit
Domestic car and utility vehicle industry has witnessed three years losses, to maximize ROA and customer experience. Operating
` 20 lakh crores amounting to 10% of the GDP. India’s economic of negative growth which is the first time in a decade which were Salaried customers too faced salary cuts and retrenchments. Both
model enhancements have been prioritized and are being
recovery has been V shaped with GDP growth of 0.5% in Q3 majorly attributed to muted consumer sentiments and higher ICRA and CRISIL projected that NPAs are expected to deteriorate
implemented for re-imagination of existing processes at a product
FY 21 and 1.6% in Q4 FY 21 after contracting 24.4% and 7.4% in cost of ownership. The car & utility vehicle industry is expected to 20-50 bps in the near term. However, with increased economic
level, to augment sales, drive operating efficiencies, reduce costs,
Q1 FY 21 and Q2 FY 21, respectively. India’s GDP for FY 21 is to activity in Q3 & Q4 collection efficiencies showed significant
post a favourable growth subject to quicker pick-up in economic and balance credit risk through better pricing. The business will
contract by 7.3% as compared to 4.0% growth in FY 20. This is the first improvement.
activity after the second wave of the pandemic, improved consumer endeavour to expand and strengthen its existing relationships with
full year contraction in the Indian economy in the last four decades
sentiments supported by resilient rural demand due to favourable Regulatory and Fiscal Environment remains conducive for the customers, manufacturers, brokers and dealers, utilizing new tools
since 1979-80, when GDP had shrunk by 5.2%. GDP at Constant
monsoons. The shift towards personal mobility from public demand in affordable housing segment. The national mission of and platforms. One such initiative is Gaadi Bazaar with the objective
Prices (2011-12) in the year 2020-21 is likely to attain a level of
transport will also help the car and utility segment in the urban ‘Housing for All by 2022’, the PMAY (Pradhan Mantri Awas Yojana) of best price discovery for used vehicles through a seamless sale-
` 135.13 trillion, as against the First Revised Estimate of GDP for
towns and cities. CLSS (Credit Linked Subsidy Scheme), implementation of Real Estate purchase process. VF Business has implemented multiple collection
the year 2019-20 of ` 145.69 trillion. Agriculture set to cushion the
Regulatory Authority (RERA), higher tax benefits for affordable processes which enable customers to shift towards alternate digital
shock of the COVID-19 pandemic on the Indian economy in FY 21 Tractor industry had a growth of 27% in FY 21 due to healthy
housing were in line with the aspirations of the government to payment modes, such as RTGS, NEFT transfers, through payment
with a growth of 3.6%. Manufacturing sector is expected to contract farm cash flows on the back of a normal monsoon and minimal
support this segment. Further, lowering the threshold for NBFCs to banks, etc. Customer awareness for making such online payments
55 56
was ensured through constant customer interactions. This is houses and marketability. 96% of the portfolio comprises business borrowings to take advantage of the downward trend in interest MOVEMENT IN INTEREST COST
expected to help the company in the new normal way of business owners with significant business vintage buying their first home. rate.
28% of customers are first time borrowers. The HL business has built The company maintained its strategy of reducing interest cost
where there might be restricted mobility in most places on account
Long-term borrowings - in the form of medium-term loans, without compromising ALM requirements. This was achieved
of the pandemic. on Chola’s inherent strength in lending to the lower middle income
segment with a customized eligibility program for business owners medium/long-term NCDs, External Commercial Borrowings (ECB) by selecting an appropriate sourcing strategy, in response to the
The business has a network of 1093 branches which will support in and Tier II - contributed ~63% of the gross incremental borrowings.
and salaried customers. Chola offers loans for self-construction, uncertain market conditions. The mix of borrowings was increased
growing market share across product segments through enhanced
purchase of resale flats/ independent houses, purchase of new Sale of receivables by way of securitisation amounting to in favour of market borrowings and regarding bank borrowings, the
dealer and geography coverage. These branches also help in
flats/independent houses, balance transfer from other financiers, ` 1,577 crores helped in the matching of inflows and outflow, over focus was to increase borrowings against Priority Sector Assets at
acquiring new customers and creating a closer proximity with
and additional loans for existing customers. Self-construction the tenure of the loan book as well as in reducing the borrowing competitive rates. As a percentage of average borrowings, interest
customers thereby improving collection efficiency and increasing
remains a strong focus of the company with significant proportion costs. cost stood at 7.6% in FY 21 as compared to 8.5% in FY 20. This
repeat business. The business has a robust collection mechanism in
of the portfolio sourced from this segment. significant cost reduction was the result of successful negotiation
place aided with a strong credit risk assessment framework. RESOURCES & TREASURY
The business has been strengthening the channel partner network of lower interest rates at the time of reset of interest rates on loans
LOAN AGAINST PROPERTY (LAP) to reach out to more customers at their doorstep. Home Loans are During the year, the company raised funds from multilateral which were linked to MCLR and other market bench marks.
serviced through 168 branches across 9 states. Given that these institutions/ banks and from money markets to support the
The focus of the LAP business during FY 21 was to stabilize Seizing the opportunity that presented itself in the last quarter
customers are mostly first-time buyers the Sales Officers guide and growth of its businesses at competitive interest rates without
disbursements, get systems and processes equipped to handle of FY 21, securitisation of ` 1,577 crores was done at competitive
facilitate the customer through the entire process. The business compromising the right mix of long and short-term borrowings
COVID induced challenges, and prioritize customers & employees’
has adopted technology to offer contact-less service delivery to its and thereby maintaining a healthy asset liability position. The rates resulting in significant savings of interest costs. The benefits
safety. The business continues to focus on a systematic approach
customers round the clock with a comprehensive customer service borrowing profile as on 31 March, 2021, is given below: of the low interest cost on these deals will continue to accrue to the
to build a healthy portfolio mix, with more than 80% of portfolio
mobile application and web portal. company in subsequent financial years.
as Self-Occupied Residential Properties (SORP) and an average
loan ticket size of less than ` 50 lakhs. Portfolio Loan-to-Value DIGITAL JOURNEY CAPITAL ADEQUACY RATIO (CAR)
(LTV) ratio at origination is consciously maintained at 52% levels With an aim to reduce physical touchpoint with stakeholders,
which provides adequate security cover to the business. Even As at the end of FY 21, the capital adequacy ratio stood at 19.1%
the business has upgraded its system with a host of integrations
with nationwide lockdown during Q1 FY 21, the business clocked (Tier I: 15.2% and Tier II: 3.9%).
covering entire stakeholder ecosystem. VideoPD, eNACH, KYC
` 3,627 crores of disbursements in FY 21, which is at par with the full verification and validation. GST and Bank statement analysis were INVESTMENTS
year disbursements of ` 3,662 crores in FY 20. Amidst a challenging introduced by keeping customer priorities in mind, apart from
macro-economic situation, Assets Under Management (AUM) for introducing a dedicated customer facing application. Also, online The company’s investments of ₹ 1,619 crores include investments
the business managed to grow by 14% to ` 14,777 crores in FY 21 payment modes for collections have been introduced to provide in G-sec of ₹ 1,545.90 crores, investments in subsidiaries of
compared to ` 12,960 crores in FY 20. customers with multiple payment options. For vendors, online ₹ 72.90 crores and investments in equity shares of ₹ 0.02 crores (net
portals have been introduced to liaise and share documents with of provisions).
The business had reached pre-COVID level of monthly
the business. Employees have been provided with mobile tablet
disbursements by the end of Q2 FY 21 with adequate credit policy
devices, and digital collaboration tools/applications have been BANK BORROWING FINANCIAL REVIEW
changes in place in tune with market challenges. Emergency Credit
introduced to minimize physical presence at branch offices. The company’s aggregate disbursements declined by 10% from
Line Guarantee Scheme (ECLGS) introduced by Government of India In FY 21, the company mobilised ` 14,921 crores (net) of medium-
₹ 29,091 crores in FY 20 to ₹ 26,043 crores in FY 21. The AUM for
was leveraged and approximately ` 800 crores was disbursed under ASSET LIABILITY MANAGEMENT term loans and ` 1,173 crores (net) as working capital / cash credit
the company grew by 14% (Y-o-Y) and the growth of on-balance
this scheme as of March 2021. The business was also proactive in / short term loan facilities from banks. The company continued
FY 21 was a year of unprecedented upheaval and uncertainty. The sheet assets was 16%. The business AUM (including on book and
providing moratorium and Ex-gratia benefit to eligible customers, getting support for its money market issuances from banks through
economies were at a standstill in the beginning of FY 21 on account assigned net of provisions) in FY 21 grew by 16% and stood at
as announced by Government of India.
of the pandemic. Even as FY 21 progressed, there was uncertainty subscription of Commercial Papers (CPs) and NCDs. During Q2, the ₹ 69,996 crores as against ₹ 60,549 crores recorded in FY 20.
To build a resilient and scalable business platform, the business has on the business outlook. The company kept ALM in focus, watching company successfully garnered $185 million by way of ECB loans
RBI’s commentaries, observing the market dynamics and engaging Asset quality as on March 2021 represented by stage 3 assets had
performed geographical restructuring activity across zones and on a fully hedged basis from the US International Development
in continuous dialogue with lenders to ensure a healthy ALM even stood at 3.96% with adequate provision coverage of 44.3% of
functions. The business, with its presence in 243 branches (as of Finance Corporation (DFC). The company continued to enjoy the
March 2021) pan India, primarily focusses on Tier 2, Tier 3 and Tier when the economy was locked down and thereafter. ECL provision, as against 3.80% last FY with provision coverage
steadfast support of the lending banks and the strong relationship of 41.5%. Stage 3 provisions for March 2021 include additional
4 cities. Out of these 243 branches, 237 branches are co-located/ The company monitored liquidity closely and ensured availability helped manage the borrowing plan for FY 21. provisions towards macro factors for ₹ 433 crores.
shared with other business verticals which will help in optimizing of funds at the best rates throughout the year. It is also to be
branch operating costs. noted that this was achieved without availing moratorium from MARKET BORROWING Profit after tax (PAT) for the year ended March, 2021 were at
HOME LOANS any of the lenders. Since a significant number of customers had ₹ 1,515 crores after creation of one-time provision of ₹ 566
During FY 21, the company raised CP of ` 12,965 crores of which
availed moratorium, liquidity had to be managed carefully. The crores (net of tax - ₹ 420 crores) towards COVID-19 contingencies
As of 31 March, 2021, the Home Loans (HL) business had company took a conservative stance and maintained an optimum ` 9,900 crores were repaid. CP outstanding as at the end of the year
and macro factors (one time provision). PAT for the year ended
34,392 live accounts (44% growth Y-o-Y) (year on year) with an AUM level of liquid assets to ensure a comfortable ALM position. This was ` 3,065 crores. Medium and long-term secured NCDs to the
March, 2021 were at ₹ 1,935 crores before considering one time
of ₹ 4,345 crores (39% growth Y-o-Y). 87% of this portfolio is in Tier conservative policy of the company helped in ensuring that tune of ` 5,795 crores were mobilised at competitive rates. At the
II, III, IV cities and towns. The disbursements grew 2% YoY in FY 21 provision, as against PAT of ₹ 1,387 crores, on a comparable basis
company met all maturities and obligations. end of FY 21, outstanding NCD stood at ` 8,936 crores. last year, registering a growth of 40%.
from ₹ 1,505 crores in FY 20 to ₹ 1,542 crores in FY 21. The portfolio
is focused to be end-use driven. The target group remains the The company continued to avail long term bank borrowings at The Tier II borrowings raised during the year was ` 145 crores of Comparable PBT-ROTA for FY 21 before adjusting one-time COVID
Lower Middle-Income Group customer. The average ticket size is competitive rates. Market borrowings were attractive on account Perpetual debt and as at the end of FY 21, Tier II borrowings stood and macro provisions was at 3.8% for the year as against 3.5% in
~₹ 15 lakhs with an average LTV of 60% which reflects the quality of of benign interest rate outlook and company raised market
at ` 4,062 crores. FY 20.
57 58
HUMAN RESOURCES (HR) Enabling, engaging & empowering employees: originations and loan management applications, these channels RISK MANAGEMENT
Learning Interventions – The pandemic crisis carved a way for huge are also integrated with the lead management and customer In its pursuit of creating value for stakeholders through sustainable
FY 2020-2021 has been one of the most challenging and
opportunity to engage employees through various Learning & service platform to ensure appropriate follow-up and resolution of business growth Chola has put in place a robust risk management
unprecedented year due to the COVID pandemic. This crisis also
Development initiatives and build potential for future. Programs on the requests. framework to promote a proactive approach in reporting, evaluating
presented CHOLA an opportunity to re-shape our strategies in
our quest to emerge stronger. This situation has brought out Process Assessment, Behavioural Assessment, Webinars, Business and resolving risks associated with the business. Given the nature
Automation continues to be a key initiative and tools are deployed
specific Process & Product e-learning Modules, customized training of the business the company is engaged in, the risk framework
major transformation in the way we are hiring, on-boarding, for automation of repetitive activities across functions wherever
for support functions. Technology solutions like Alt learning, Office recognizes that there is uncertainty in creating and sustaining such
training, and engaging employees. The role of each HR person has opportunity presents. Similarly, the usage of such tools within
– 365 enabled the possibility of reaching out to a wider audience. value as well as in identifying opportunities. Risk management is
demanded a change from being an enabler to business driver. The the function is also increasing covering areas like automated data
E-learning content for process & product gave a quick kick start therefore made an integral part of the company’s operations. .
key HR interventions this year were on the themes of preserving, health checks, continuous integration and build, and smarter
for driving the learning initiatives. Around 82 programs covering Risk Management Framework: Company’s risk management
protecting & building for the future such as application & infrastructure monitoring.
around 70% population were rolled out. framework is based on,
1) Wellness support programs Significant progress has been made on the enterprise data
TECHNOLOGY INITIATIVES (a) Clear understanding and identification of various risks,
2) Business Continuity plan put in place. repository built with the setup of a cloud-based environment to
(b) Disciplined risk assessment by evaluating the probability and
As a part of the transformation journey, the technology team handle vast volumes of data from transactional systems as well
3 Strengthening & Re-alignment of process to adopt to a impact of each risk,impact of each risk
has been focusing with renewed vigour on delivering seamless as non-system sources. While supporting varying data types and
new normal.
digital experience, automation & agility in solution delivery and formats, both relational and non-relational, the platform also (c) Measurement and monitoring of risks by establishing key risk
4) Enabling, engaging & empowering employees transitioning to a data-driven enterprise. provides stakeholders dashboards on critical business parameters, indicators with thresholds for all critical risks and
Wellness program: Employee wellness was on top of the chart view of the operational metrics for the business processes, and (d) Adequate review mechanism to monitor and control risks.
From a digital experience perspective, the objective is to engage
with on-call counselling support for preserving employee’s mental ability to drive corrective actions based on access to real-time
customers and users across channels while delivering an improved Company’s risk management division works as a value centre by
health, exclusive Help Desk for COVID impacted employees and information. This coupled with role-based and row-level access constantly engaging with the business and providing key insights
user experience, optimization of data points being provided, API-
their families, on-call doctor facility, COVID Combat plan, etc. In control mechanisms ensure broader access to data for users within into the portfolio based on data driven analysis. The key risks faced
led mechanism to validate and improve accuracy of data, and
addition to the existing Life Insurance and Medical insurance cover, the organization but in a controlled and secure manner. by the company are credit risk, liquidity risk, interest rate risk,
ultimately deliver a delightful customer experience. Better user
all employees and their dependents were extended a negotiated experience is delivered by digitizing any in-person interaction, operational risk, reputational and regulatory risk, which are broadly
The technology team has also undertaken conscious steps related
and well covered COVID protection Insurance policy. Frequent providing variety of options for digital payments, and transitioning classified as credit risk, market risk and operational risk. The company
to environmental impact of technology and related energy
from paper-based activities to appropriate digital alternatives. has a well-established risk reporting and monitoring framework.
Communication drives, publishing of branch functioning SOPs, consumption. With a clear focus on sustainability, a well defined
The in-house developed risk monitoring tool, Chola composite risk
SOPs for customer visits were enhanced protocols of the year. e-waste policy ensures that disposal of e-waste is carried out only
During the year, further functional enhancements and technology index, measures the movement of top critical risks. This provides
The Company believes that relentless efforts towards educating through authorized e-waste vendors. Similarly, optimal energy
improvements have been carried out for the Home Loan and the level and direction of risks, which are arrived at based on the
and empowering employees have helped in managing the COVID usage has been driven through infrastructure consolidation and
Loan Against Property businesses. For Vehicle Finance business, two-level risk thresholds for the identified key risk indicators and
impact to a larger extent. technology integration with manufacturers was designed and adoption of efficient compute technologies. are aligned to the overall company’s risk appetite framework
Business Continuity plan: Leveraging on Chola’s digital platforms, deployed to collectively provide improved experience and quicker Given the expanding digital footprint, strong and robust cyber approved by the Board. The company’s risk management initiatives
work from home facility was quickly put in place in consultation response spanning lead sharing, in-principle approval, and lead security management and related processes are being put in and risk MIS are reviewed monthly by the top management. This
with management. Teams were equipped with work necessities to progress update to customers. Similarly, the core VF business process enables the company to reassess the top critical risks in a
place. This includes appropriate security standards for endpoints,
avoid disruption of services. Immediately after lifting of Lockdown, related processes are undergoing technology-led transformation changing environment that need to be focused on.
servers, and network equipment and execution of comprehensive
around 95% of our branches were operational Pan India. Various to launch a scalable digital platform. Using service integrations
vulnerability assessments and penetration testing to minimize Risk Governance structure:
protocols on work from home, branch operations, sanitization, to validate the person (identity / KYC, contact detail validation
application related threats. The company has conducted awareness
etc.), financial (financial statement analysis and validation etc.), The company’s overall risk governance is handled by three lines
prevention, and safety measures were communicated periodically. on cyber security and user safety guidelines related to data of defence to ensure the effectiveness of an organization’s risk
and transactional (bank accounts, ACH mandate, wallets etc.)
Strengthening & Re-alignment of process: handling, password protection and service access. management framework including monitoring and assurance
aspects of the digitization, the platform aims to deliver a high-
functions within the organization.
l Hiring to exits are now automated and handled through digital quality experience irrespective of whether someone is a long-time There is sustained effort to train and develop skills in critical
platforms. customer or a first-time borrower. technology related areas to ensure that the deep domain a) Under the first line of defence, risk champions are identified
knowledge & expertise, robust and sustained solution delivery in each functional and business unit to take ownership,
l There were no job cuts and no compensation re-alignments. For the customers, irrespective of their stage of lifecycle with
excellence, strong data science & data architecture capability, responsibility and accountability for directly assessing,
l Around 500 new employees joined the company during the year.
the organization, technology solutions ranging from chatbot to controlling and mitigating risks.
building scalable and secure cloud-native solutions, and adopting
mobile applications are deployed to engage them across channels.
l Regrettable attrition in FY 21 was down by 7% compared to FY 20. a diligent security-first & cyber risk view of all aspects of technology b) The risk management team under the guidance of the
Chatbot-enabled platform enables them to share a lead, submit
are seen as key levers to help the digital technology team be well risk management committee acts as the second line of
l Annual Salary increments & Performance incentives were rolled a quick loan application, raise a service request, or even request
positioned to help drive the organizational transformation. defence. The risk management division has established a
out in Q4, to keep employee’s morale up. for a loan moratorium. Along with augmentation of the loan
59 60
comprehensive risk management framework across the committee. In addition, the company has put in an ALM support On compliance, a methodical system of monthly self-assessment STATEMENT OF PROFIT & LOSS
business and provides appropriate analysis and reports on group which meets frequently to review the liquidity position of exists in all functions. A robust mechanism is in place to control, ` in crores
risk exposures in its pursuit of creating awareness across the the company. detect and prevent fraud. The investigations are reviewed by a Particulars March 2021 March 2020 Growth %
company about risk management. The RMC of the board disciplinary committee comprising senior management members Disbursements 26,042.63 29,091.17 (10%)
OPERATIONAL RISK
meets minimum of four times a year and reviews the risk and chaired by the executive director. Income 9,519.62 8,652.89 10%
management policy, implementation of risk management Operational risk is the risk of loss resulting from inadequate or The internal financial control systems are constantly monitored both Cost of Funds (4575.91) (4,592.23) 0%
framework, monitoring of critical risks, and review of various failed internal processes, people, or systems, or from external by an in-house team as well as the consultants. The risk and control Net Margin 4,943.71 4,060.66 22%
other initiatives with a structured annual plan. events. The operational risks of the company are managed through Operating Expenses (1,583.44) (1,577.60) 0%
matrices are reviewed by the internal audit team on a quarterly
comprehensive internal control systems and procedures and Provisions and Losses (1,321.83) (897.33) 47%
c)
Third line of defence constitutes internal auditors, basis, control measures are tested, and results are communicated to
Profit Before Tax (PBT) 2,038.44 1,585.73 29%
consultants and statutory auditors, who provide assurance key back up processes. In order to further strengthen the control the Audit Committee. These measures have helped in ensuring the
Current and Deferred Tax (525.53) (533.36) (2%)
to the Audit Committee and senior management on the framework and effectiveness, the company has established risk adequacy and operating effectiveness of internal financial controls. Profit After Tax (PAT) 1,514.91 1,052.37 44%
effectiveness of internal governance and risk processes. control self-assessment at branches to identify process lapses
The statutory auditors of the company have also certified on the
by way of exception reporting. This enables the management to
existence and operating effectiveness of the internal financial KEY RATIOS
CREDIT RISK evaluate key areas of operational risks and the process to adequately
controls relating to financial reporting as of March, 2021.
mitigate them on an ongoing basis. The company also undertakes Particulars March 2021 March 2020
Credit risk arises when a borrower is unable to meet his financial
obligations to the lender. This could be either because of wrong risk-based audits on a regular basis across all business units / RESULT OF OPERATIONS Return on Equity - PAT 16.9% 15.2%
assessment of the borrower’s payment capabilities or due functions. While examining the effectiveness of control framework Return on Total Assets - PAT 2.2% 1.8%
The company’s balance sheet size has steadily grown, compared
through self-assessment, the risk-based audit would assure effective Assets under Management 76,518 66,943
to uncertainties in his future earning potential. The effective to the previous year. A summarised version of the same is given
implementation of self-certification and internal financial controls (₹ in crores)
management of credit risk requires the establishment of appropriate below:
adherence, thereby, reducing enterprise exposure. The company Earnings Per Share - Basic (in ₹) 18.48 13.37
credit risk policies and processes. The company has comprehensive BALANCE SHEET Market Price - as of 31 March (in ₹) 558.8 152.95
and well-defined credit policies across various businesses, products, has put in place a robust Disaster Recovery (DR) plan, which is
` in crores Market Capitalisation - as of 31 March 45,824 12,535
and segments, which encompass credit approval process for all periodically tested. Business Continuity Plan (BCP) is also in place
Particulars March 2021 March 2020 Growth % (₹ in crores)
businesses along with guidelines for mitigating the risks associated to ensure seamless continuity of operations including services
CAR 19.1% 20.7%
to customers and periodic testing is carried out to address gaps Assets
with them. The appraisal process includes detailed risk assessment of Operating Expenses to Assets 2.3% 2.6%
in the framework, if any. DR and BCP audits are conducted on a Business Assets 65,839 55,403 19%
the borrowers, physical verification and field visits. The company has Profit Before Tax to Income 21.4% 18.9%
periodical basis to provide assurance regarding the effectiveness of Cash & Bank Balances 5,232 6,959 (25%)
a robust post sanction monitoring process to identify credit portfolio
the company’s readiness. The company is continuously engaged in Other Assets 3,477 1,641 112% CONSOLIDATED RESULTS
trends and early warning signals. This enables it to implement
TOTAL 74,548 64,002 16%
necessary changes to the credit policy, whenever the need arises. creating risk awareness and culture across the organisation through The consolidated profit after tax for the year under review was
Liabilities
Also, being in asset financing business, most of the company’s training on risk management tools and communication through risk ₹ 1,520.86 crores in FY 21, as against ₹ 1,053.72 crores in FY 20.
Net worth 9,560 8,172 17%
lending is covered by adequate collaterals from the borrowers. e-newsletters.
Borrowings 59,383 50,374 18%
On behalf of the board
The company has a robust online application underwriting model INTERNAL CONTROL SYSTEMS Securitisation 4,347 4,631 (6%)
to assess the credit worthiness of the borrower for underwriting Other Liabilities 1,258 825 52% Place : Chennai Vellayan Subbiah
An internal control framework, including internal financial controls,
decisions for its vehicle finance, Loan against Property and home TOTAL 74,548 64,002 16% Date : 7 May, 2021 Chairman
encompassing clear delegation of authority and standard operating
loan business. The company also has a well-developed model for
procedures, are available across all businesses and functions.
the vehicle finance portfolio, to help business teams plan volume
Clear segregation of duties exists between various functions. Key
with adequate pricing of risk for different segments of the portfolio.
operational processes (finance and operations) are centralised at
MARKET RISK head office for better control. The company has instituted a strong
Market risk is the possibility of loss arising from changes in the IT security system to ensure information security. All policies are
value of a financial instrument due to changes in market variables reviewed and approved by the board on a periodic basis.
such as interest rates, exchange rates and other asset prices. The The company has engaged M/s. Deloitte Haskins & Sells LLP – to
company’s exposure to market risk is a function of asset liability provide an independent perspective on internal control systems.
management and interest rate sensitivity assessment. The company Further, the in-house internal audit department executes a rigorous
can be exposed to interest rate risk and liquidity risk, if the same are audit calendar spanning multiple business processes. The audit
not managed properly. The company continuously monitors these teams conduct an independent review of the design and operating
risks and manages them through appropriate risk limits. The Asset effectiveness of internal financial controls established by
Liability Management Committee (ALCO) reviews market-related the management and recommends improvements. Critical
trends and risks and adopts various strategies related to assets and audit observations are shared with the audit committee on a
liabilities, in line with the company’s risk management framework. quarterly basis to effectively monitor, controls and implement
ALCO activities are in turn monitored and reviewed by a board sub- recommendations.
61 62
Report on
Composition Formal induction and familiarisation programme for directors
The board has been constituted in a manner as per regulation The company’s independent directors are eminent professionals
17 of the SEBI (Listing Obligations and Disclosure Requirements)
Corporate Governance
with several decades of experience in banking and financial services
Regulations, 2015 (Listing Regulations) and the Companies Act,
industry, technology, finance, governance and management
2013 (the Act). The board has a mix of executive / non-executive
and independent directors, including a woman independent areas and are fully conversant and familiar with the business
director to ensure proper governance and management. The of the company. The company has an ongoing familiarisation
board members have collective experience in diverse fields like programme for all directors with regard to their roles, duties, rights,
banking and financial services, audit, finance, risk, compliance and responsibilities in the company, nature of the industry in which the
technology. The directors are appointed based on their qualification
company operates, the business model of the company, etc. The
and experience in varied fields. None of the directors are inter-se
Corporate governance is about commitment to values and ethical ã Have a transparent corporate structure driven by business programme is embedded in the regular meeting agenda where
related.
business conduct. It is also about how an organization is managed needs; and alongside the review of operations, information on the industry,
Core Skills / expertise / competencies
viz., its corporate and business structure, its culture, policies and ã Ensure compliance with applicable laws. competition and company strategy are presented on a quarterly
In terms of Listing Regulations, the following are the list of core skills
the manner in which it deals with various stakeholders. Timely and
BOARD OF DIRECTORS / expertise / competencies identified by the board in the context of basis. The details of the familiarisation programme attended by
accurate disclosure of information regarding the financial position
the company’s business and sector for effective functioning: directors are available on the website of the company (weblink:
of the company, its performance and ownership forms part of the The corporate governance practices of the company ensure that
the board of directors (the board) remains informed, independent https://www.cholamandalam.com/files/media/Familiarisation-
corporate governance.
and involved in the company and that there are ongoing efforts Core Skills / expertise / competencies Status programme-imparted-to-Independent-Directors.pdf).
CORPORATE GOVERNANCE PHILOSOPHY towards better governance to mitigate “non-business” risks. Finance Competency
At the time of induction of a director on the board of the company,
Strategy, planning and marketing available
The company is committed to the highest standards of corporate The board is fully aware of its fiduciary responsibilities and recognizes Technology a formal invitation to join the board of the company is sent out
governance in all its activities and processes. its responsibilities to shareholders and other stakeholders to uphold Governance & Risk along with a brief introduction about the company. A copy of the
the highest standards in all matters concerning the company Management and leadership
The company has always believed in and practices the highest company’s latest annual report and the schedule of the upcoming
and has empowered responsible persons to implement its broad
standards of corporate governance. The board recognizes that board / committee meetings for the calendar year are forwarded
policies and guidelines and has set up adequate review processes. The names of directors who have the above skills / expertise /
governance expectations are constantly evolving and is committed to the director. The director is explained in detail the compliances
The board is committed to representing the long-term interests of competencies are as follows:
to keep standards of transparency and dissemination of information required of him / her under the Act, the Listing Regulations and
the stakeholders and in providing effective governance over the Name of the director Skills/expertise/competencies
under continuous review to meet both letter and spirit of the law Mr. Vellayan Subbiah Finance, Strategy, planning, governance
other relevant regulations and his / her affirmation is taken with
company’s affairs and exercise reasonable business judgment on
and its own demanding levels of business ethics. & risk, technology, management and respect to the same. By way of an introduction the company
the affairs of the company.
leadership conducts a familiarisation program covering all the businesses,
The company believes that sound corporate governance practices The company’s day to day affairs are managed by the executive Mr. N. Ramesh Rajan Finance, governance & risk,
are crucial to the smooth and efficient operation of a company and management and leadership
functions and regulations impacting the company to new directors.
director (ED) and a competent management team, under the overall
its ability to attract investment, protect the rights of its stakeholders supervision of the board. The company has in place an appropriate Mr. Ashok Kumar Barat Finance, strategy, planning and Additionally, the company’s code of conduct which inter alia
marketing, governance & risk, explains the values and beliefs of the company, functions, duties
and provide shareholder value. Everything the company does is risk management system covering various risks that the company is
management and leadership
defined and conditioned by the high standards of governance, exposed to, including fraud risks, which are discussed and reviewed and responsibilities as a director of the company, including the
Ms. Bhama Krishnamurthy Finance, governance & risk,
which serve its values. The company firmly believes in and follows by the audit committee and the board every quarter. management and leadership duties of independent directors in terms of the Act is given to the
the below principle: Mr. Rohan Verma Technology, strategy, planning and director at the time of joining and on an annual basis. Further, there
The company’s commitment to ethical and lawful business conduct
marketing, management and leadership
is a fundamental shared value of the board, the senior management is a detailed quarterly discussion and presentation on review of
“The fundamental principle of economic activity is that no man you Mr. M.A.M. Arunachalam Management and leadership,
and all employees of the company. Consistent with its values and governance & risk, strategy, planning operations of the company and the regulatory updates impacting
transact with will lose; then you shall not.”
beliefs, the company has formulated a Code of Conduct applicable and marketing the business which helps the director familiarise himself / herself
The corporate governance philosophy of the company is driven by to the board and senior management. Further, the company has Mr. Anand Kumar Finance, strategy, planning and
with the company, its business and the regulatory framework in
the following fundamental principles: also adopted a Code of Conduct to regulate, monitor and report marketing, governance & risk,
management and leadership which the company operates.
ã Adhere to corporate governance standards beyond the letter trading by insiders in the securities of the company and a whistle
Mr. Bharath Vasudevan Finance, technology, strategy, planning
blower policy for reporting any concerns or grievances by directors, The details of directors as at 31 March, 2021, including the details
of law; and marketing, governance & risk,
employees / customers and vendors in their dealings with the management and leadership of their other board directorship and committee membership
ã Maintain transparency and high degree of disclosure levels;
company. In order to ensure that the whistle blower mechanism Mr. Ravindra Kumar Kundu Management and leadership, strategy, reckoned in line with regulation 26 of the Listing Regulations and
ã Maintain a clear distinction between the personal interest is effective and as prescribed, direct access to the chairman of the planning and marketing
the Act as well as their shareholdings, are given below:
and the corporate interest; audit committee is provided to the complainant.
63 64
Name of the director Executive / Non-executive / No. of directorship No. of shares No. of board and is provided with briefings and presentations on operations, AUDIT COMMITTEE
Independent / Promoter including CIFCL* held in the committee membership quarterly financial statements and other matters concerning
Terms of Reference
(Out of which as company including CIFCL** the company. Besides, information about statutory compliance,
chairman) (Out of which as minutes of all the subsidiary companies and committees of the The committee acts as a link between the board, the statutory
chairman) board and information as required under the Listing Regulations auditors and the internal auditors. The role of the audit committee
are also provided to the directors on a quarterly basis. The board at includes overseeing the financial reporting process and disclosure
Mr. Vellayan Subbiah Non-executive / Promoter director / 9(2) Nil 5(1)
every meeting also reviews the important regulatory changes and of financial information, review of financial statements, adequacy
Chairman
correspondence between two meetings. of internal financial controls and risk management systems, review
Mr. N. Ramesh Rajan Non-executive / Independent director 4(1) Nil 4(3)
and approval of transactions with related parties, findings of
Mr. Ashok Kumar Barat Non-executive / Independent director 8 Nil 7(4) The dates of the board meetings are fixed in advance for the
internal audits / investigations, whistle blower policy, monitoring
Ms. Bhama Krishnamurthy Non-executive / Independent director 8 Nil 7 calendar year to enable maximum attendance from directors.
the usage of funds from issue proceeds, review the financial
Mr. Rohan Verma Non-executive / Independent director 3(1) Nil 1 During the year, the board met 7 times on 3 June, 2020,
statements, in particular, the investments made by the unlisted
Mr. M.A.M. Arunachalam Non-executive / Promoter director 10(2) 65,000 7(2) 30 July, 2020, 29 October, 2020, 11 November, 2020,
subsidiary companies, review of usage of loans, advances received,
Mr. Anand Kumar Non- executive / Independent director 4 Nil Nil 29 January, 2021, 16 March, 2021 and 23 March, 2021. The Act,
investment in the subsidiaries exceeding ₹ 100 crore or 10% of the
Mr. Bharath Vasudevan Non-executive / Independent director 1 Nil Nil read with the relevant rules made there under, facilitates the
asset size of the subsidiary, review compliance with the provisions
participation of a director in board / committee meetings through
Mr. Ravindra Kumar Kundu Executive Director 3 1,16,635 1 of SEBI Prohibition of the Insider Trading Regulations at least once
video conferencing or other audio visual means. Accordingly, the
* for the purpose of directorship / committee membership, all public / private companies and section 8 companies have been considered. a financial year. The committee also verifies the adequacy in the
company also provides the option to participate through video
** only chairmanship / membership of audit committee and stakeholders’ relationship committee have been considered. conferencing to enable the directors’ participation at the meetings. systems for internal controls, to grant approvals for transactions
The names of the other listed entities where the directors are holding directorship as at 31 March, 2021 are given below: During the year, in view of the travel restrictions and health with related parties which are in the ordinary course of business
hazards due to COVID-19 pandemic, option to attend the board and on an arm’s length basis, scrutiny of inter-corporate loans and
Name of the director Name of the listed entity Category of directorship and committee meetings through video conferencing facility were investments, besides recommending the appointment / removal
Mr. Vellayan Subbiah SRF Limited Independent Director provided to directors to participate from their remote locations. of the statutory auditors, the internal auditors and fixing their
Tube Investments of India Limited Managing Director remuneration and review of the effectiveness of audit process.
The board periodically reviews the matters required to be placed
Cholamandalam Financial Holdings Limited Non-executive Director before it and inter alia reviews and approves the quarterly financial Composition & Meetings
Shanthi Gears Limited statements, corporate strategies, business plan, annual budgets As at 31 March, 2021 the committee comprised of three non-
CG Power and Industrial Solutions Limited Non-executive Director / Chairman and capital expenditures. It monitors the overall performance and executive independent directors and one non-executive director. The
Mr. N. Ramesh Rajan Indo - National Limited Non-executive / Independent Director / Chairman reviews other matters which require the board’s attention. committee comprised of Mr. N. Ramesh Rajan, independent director
TTK Healthcare Limited Non-executive / Independent Director as the chairman, Mr. Ashok Kumar Barat, Ms. Bhama Krishnamurthy
The board also takes on record the declarations and confirmations
Mr. Ashok Kumar Barat Cholamandalam Financial Holdings Limited Non-executive / Independent Director and Mr. M.A.M. Arunachalam, as its members and Mr. Vellayan
made by the managing director / executive director, chief financial
Bata India Limited Subbiah, chairman of the board, Mr. Rohan Verma, director and
officer and company secretary, regarding compliances of all laws
Birlasoft Limited on a quarterly basis. Mr. Ravindra Kumar Kundu, executive director as permanent invitees.
DCB Bank Limited The company secretary acts as the secretary to the committee.
Certificate from Company Secretary in Practice
Huhtamaki India Limited During the year, the committee met five times. All members of audit
Ms. Bhama Krishnamurthy Reliance Industrial Infrastructure Limited Non-executive / Independent Director Mr. R. Sridharan of M/s. R. Sridharan & Associates has issued a committee have knowledge of financial management, audit and
CSB Bank Ltd. certificate as required under the Listing Regulations, confirming accounts. The statutory auditors, the internal auditors and senior
Network 18 Media & Investments Limited that none of the directors on the board of the company has been management are invited to attend the meetings of the committee.
Thirumalai Chemicals Limited debarred or disqualified from being appointed or continuing as The company has in place a system for an independent meeting of
Mr. Rohan Verma - - director of companies by SEBI / Ministry of Corporate Affairs or the committee with the statutory and internal auditors without the
any such statutory authority. A certificate to this effect has been presence of the non-independent directors and management team.
Mr. M.A.M. Arunachalam Tube Investment of India Limited Non-executive Director / Chairman
enclosed with this report. The committee met the statutory auditors as well as internal auditors
Coromandel Engineering Company Limited Non-executive Director
during the year.
CG Power and Industrial Solutions Limited COMMITTEES OF THE BOARD
Shanthi Gears Limited NOMINATION AND REMUNERATION COMMITTEE
The board has constituted various committees to support the
Mr. Anand Kumar Tube Investments of India Limited Non-executive / Independent Director board in discharging its responsibilities. Terms of Reference
Mr. Bharath Vasudevan - -
There are seven committees constituted by the board - audit The role of the committee is to determine the company’s policy
Mr. Ravindra Kumar Kundu - -
committee, stakeholders’ relationship committee, corporate on remuneration to executive directors and senior management,
In the opinion of the board, the independent directors of the had a separate meeting on 16 March, 2021 without the presence of social responsibility committee, nomination and remuneration including periodic increments in salary. The committee is also
company fulfill the conditions specified in Listing Regulations and the non-independent directors and management team. committee, risk management committee, IT strategy committee empowered to determine the annual commission / incentives of
are independent of the management of the company. and business committee. the executive directors and the minimum remuneration of the
Board Meetings
All the board members, including independent directors, have The board at the time of constitution of each committee fixes the executive directors in the event of inadequacy of profits besides
The board meets at regular intervals with an annual calendar and terms of reference, reviews it and delegates powers from time to implementing, remuneration including commission payable
opportunity and access to interact with the management.
a formal schedule of matters specifically reserved for its attention time. Various recommendations of the committees are submitted to to non-executive directors, administering and monitoring the
Separate meeting of independent directors to ensure that it exercises full control over significant strategic, the board for approval. During the year, the Board had accepted all employee stock option plan / schemes of the company. The terms
During the year under review, in line with the requirement under financial, operational and compliance matters. The board is recommendations of the Committees. The minutes of the meetings of reference inter alia includes the role of the committee to further
section 149(8) and schedule IV of the Act, the independent directors regularly briefed and updated on the key activities of the business of all the committees are circulated to the board for its information. consider and recommend persons who are qualified for board
65 66
positions, evaluate directors performance prior to recommendation The non-executive directors are also paid sitting fees subject to the Remuneration of non-executive directors
for re-appointments, identify persons who are qualified to be statutory ceiling for all board and committee meetings attended
Directors of the company were paid sitting fees of ₹ 50,000/- for every meeting of board and audit committee and ₹ 30,000/- for every
in senior management and recommend their appointments, by them.
remuneration payable and removal, formulate the criteria for meeting of stakeholders’ relationship committee, nomination and remuneration committee, risk management committee, corporate social
determining qualifications, positive attributes and independence Criteria for Board Nomination responsibility committee, IT strategy committee and business committee during the FY 2021. The details of commission provided / sitting
of a director and devising a policy on board diversity, determine The nomination and remuneration committee is responsible fees paid to non-executive directors for the year ended 31 March, 2021 are as follows:
whether to extend or continue the terms of appointment of ` in lakhs
for identifying persons for initial nomination as directors and
independent director on the basis of the report of performance evaluating incumbent directors for their continued service. The Name of the director Commission Sitting Fees paid Total
evaluation. Decisions for selecting a director is based on the merit, committee has formulated a charter in terms of the provisions Mr. Vellayan Subbiah 3.86 3.80 7.66
qualification, competency and the company’s business needs. Such of the Act, regulation 19(4) of the Listing Regulations and RBI Mr. N. Ramesh Rajan 12.00 9.00 21.00
candidates shall be free of conflict of interest that would interfere
Regulations applicable for non-banking finance companies, which Mr. Ashok Kumar Barat 10.00 11.10 21.10
with their ability to discharge their duties. The recommendations of
inter alia, deals with the personal traits, competencies, experience, Ms. Bhama Krishnamurthy 10.00 8.10 18.10
the committee are placed before the board for its approval.
background and other fit and proper criteria. These attributes shall Mr. Rohan Verma 10.00 4.50 14.50
Composition & Meetings be considered for nominating candidates for board positions/ re-
Mr. M.A.M. Arunachalam 1.70 2.90 4.60
As at 31 March, 2021, the committee comprised Mr. N. Ramesh Rajan, appointment of directors.
Mr. Anand Kumar 0.44 1.00 1.44
independent director as the chairman, Mr. Vellayan Subbiah and
Criteria for appointment in senior management Mr. Bharath Vasudevan 0.44 1.00 1.44
Mr. Ashok Kumar Barat as its members. The majority of the members
of this committee are independent directors. The committee had The nomination and remuneration committee is responsible for Mr. M.M. Murugappan @
6.16 4.10 10.26
five meetings during the year ended 31 March, 2021. identifying and recommending persons who are qualified to be TOTAL 54.60 45.50 100.10
appointed in senior management including recommending their
REMUNERATION OF DIRECTORS @ - Resigned as chairman and director with effect from the close of business hours of 11 November, 2020.
remuneration. The committee has formulated the charter in terms
Remuneration Policy of the provisions of the Act and the Listing Regulations, which inter Note:
alia, deals with the criteria for identifying persons who are qualified Commission is provided based on the tenure the directors have served on the board and will be paid subject to deduction of tax as applicable.
The success of any organisation in achieving good performance
and governance depends on its ability to attract quality individuals to be appointed in senior management and periodical review of STAKEHOLDERS RELATIONSHIP COMMITTEE systematic identification, cyber security and assessment of the
on the board. succession planning for board and senior management. These business risks. Besides, the committee periodically monitors the
attributes shall be considered for nominating candidates for senior Terms of Reference
The company has in place a remuneration policy which is guided critical risk exposures by specialised analysis and quality reviews
by the principles and objectives as enumerated in section 178 of management position. The role of the committee includes formulation of shareholders’ and reports to the board the details of any significant developments,
the Act. Performance Evaluation servicing plans and policies, share transmissions, issue of identify and make recommendations to the board, to the extent
Currently, Mr. Ravindra Kumar Kundu is the executive director (ED) duplicate share certificates, issue of share certificates for split, necessary on resources and staffing required for effective risk
In terms of the provisions of the Act and the Listing Regulations,
on the board. The compensation to Mr. Ravindra Kumar Kundu rematerialisation, consolidation of shares, etc. The committee also management and the action taken to manage the exposures and
the board carries out an annual performance evaluation of its own
is within the scale approved by the board and shareholders. monitors and reviews the mechanism of dematerialisation of shares carry out any other function as may be necessary to ensure that an
performance, the directors individually including ED carry out
The elements of compensation comprise a fixed component, and payment of dividends, adherence to the service standards in effective risk management system is in place
a self as well as a peer evaluation and the individual committees
performance incentive and employee stock options. The respect of various services being rendered by the Registrar & Share
carry out an evaluation of the working of the committees. The Composition & Meetings
compensation is determined based on the level of responsibility
performance evaluation of the independent directors is carried Transfer Agent, measures taken for effective exercise of voting
and scales prevailing in the industry. ED is not paid sitting fees for As at 31 March, 2021 the committee comprised Mr. Ashok
out by the entire board. The performance of the chairman and the rights by shareholders, approve transfer of shares to the Investors
any board / committee meetings attended by him. Kumar Barat as the chairman, Mr. N. Ramesh Rajan, Ms. Bhama
non-independent directors are carried out by the independent Education and Protection Fund. It further looks into the redressing
The compensation to the non-executive directors takes the form Krishnamurthy, Mr. M.A.M. Arunachalam and Mr. Ravindra Kumar
directors. Chairman anchors the sessions on self, peer, committee of shareholders’ grievances like non-receipt of balance sheet, non-
of commission on profits. Though the shareholders have approved Kundu as its members and business and functional heads of the
and board effectiveness evaluations. Chairman of the nomination receipt of declared dividends and determining, monitoring and
payment of commission up to one per cent of the net profits company as permanent invitees. The committee held five meetings
of the company for each year calculated as per the provisions of and remuneration committee anchors the session on chairman reviewing the standards for resolution of shareholders’ grievances.
evaluation. during the year ended 31 March, 2021.
section 198 of the Act, the actual commission paid to the directors During the year, the company had not received any complaint
is restricted to a fixed sum within the above limit annually on the Policy on Board diversity Meetings with chief risk officer
from the shareholder / debenture holder. There were no investor
basis of their tenure in office during the financial year. The sum is
The nomination and remuneration committee has devised a policy complaints pending as at 31 March, 2021 and no complaints that During the year under review, in line with the requirement under
reviewed periodically taking into consideration various factors
on board diversity which sets out the approach to diversity on the were not solved to the satisfaction of shareholders. RBI regulations, the committee had separate meetings with
such as performance of the company, time devoted by the directors
in attending to the affairs and business of the company and the board of the company. The policy provides for having a truly diverse Mr. Shankar Subramanian, chief risk officer of the company without
Composition & Meetings
extent of responsibilities cast on the directors under various laws board, comprising of appropriately qualified people with a broad the presence of the managing director / executive director and the
and other relevant factors. range of experience relevant to the business of the company. As at 31 March, 2021, the committee comprised Mr. Vellayan management team.
Subbiah, Mr. Rohan Verma and Mr. Ravindra Kumar Kundu as its
Remuneration of executive director/s: IT STRATEGY COMMITTEE
members. Ms. P. Sujatha, company secretary is the compliance
Details of the remuneration of the managing director and executive director for the year ended 31 March, 2021 are as follows:
` in lakhs officer. During the year, the committee held two meetings. Terms of Reference
Name of the Director Salary Allowance Incentive (provisional) Perquisites & Contributions Total The role of committee includes approving Information Technology
RISK MANAGEMENT COMMITTEE
Mr. Arun Alagappan 93.31 115.77 89.50 62.35 360.93 (IT) strategy and policy documents and ensuring that the
(till 14.02.2021)$ Terms of Reference
management has put an effective strategic planning process in
Mr. Ravindra Kumar Kundu 82.63 47.66 56.05 33.10 219.44 The role of the committee includes review of the risk management place and ascertaining implementation processes and practices
Note:
policy developed by the management, review of the annual that ensure that IT delivers value to the business. Ensuring IT
Mr. Arun Alagappan and Mr. Ravindra Kumar Kundu are not eligible for any severance fee. Service contract and the notice period are as per the terms of agreement
entered into by them with the company. risk management framework document and implementation of investments represent a balance of risks and benefits, the budgets
$ - Resigned as managing director and director of the company with effect from end of day, 14 February, 2021. the actions planned in and periodical review of the process for are acceptable and monitoring the method that management uses
67 68
to determine the IT resources needed to achieve strategic goals and Composition & Meetings DETAILS OF SPECIAL RESOLUTIONS PASSED
provide high-level direction for sourcing and use of IT resources. As at 31 March, 2021, the business committee comprised Particulars of special resolutions passed in the previous three annual general meetings are given below:
Ensuring proper balance of IT investments for sustaining company’s Mr. Vellayan Subbiah as the chairman, Mr. Ashok Kumar Barat and
growth and becoming aware about exposure towards IT risks and Mr. M.A.M. Arunachalam as its members. The senior management Date of AGM Details
controls. The committee also reviews the information security is invited to attend the meetings of the committee. The committee
and cyber security framework, business continuity planning and held three meetings during the year. 26 July, 2018 - Approval for borrowing powers of the Company
disaster recovery process of the company. - Issue of securities on private placement basis under section 42 of the Act
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Composition & Meetings 30 July, 2019 - Approval for borrowing powers of the Company
Terms of Reference - Issue of securities on private placement basis under section 42 of the Act
As at 31 March, 2021, the committee comprised Mr. Ashok Kumar
The role of the committee includes formulation and - Approval for payment of commission to non-executive directors
Barat as the chairman, Mr. Rohan Verma and Mr. Vellayan Subbiah
recommendation of a corporate social responsibility (CSR) policy 30 July, 2020 - Issue of securities on private placement basis under section 42 of the Act
as its members. The committee held four meetings during the year
for the company, recommend the amount of expenditure to
ended 31 March, 2021.
be incurred on the CSR activities, monitor the CSR policy of the POSTAL BALLOT
BUSINESS COMMITTEE company from time to time and institute a transparent monitoring No postal ballot was conducted during FY 21.
Terms of Reference mechanism for implementing the CSR activities and carry out any
other function or activity as may be required to ensure that the CSR Proposed resolutions through postal ballot
The role of the committee includes review of the business of the objectives are met. No special resolution is proposed to be conducted through postal ballot.
company, including approval and review of business proposals
Composition & Meetings
beyond certain financial limits, review and recommend new COMPLIANCE REPORT window is closed. The board has further approved the code for
product note to the board for approval, approve borrowings As at 31 March, 2021, the committee comprised Mr. Vellayan practices and procedures for fair disclosure of unpublished price
within the limits prescribed by the board, approve assignment of Subbiah as the chairman, Ms. Bhama Krishnamurthy and A detailed compliance report is placed before the board every
quarter and highlights of the report is circulated to the board along sensitive information and policy governing the procedure of inquiry
receivables and oversee the asset liability management system of Mr. M.A.M. Arunachalam as its members. The committee held two
with the agenda every quarter. The company secretary submits a in case of actual or suspected leak of unpublished price sensitive
the company. meetings during the year ended 31 March, 2021.
compliance certificate to the board on a quarterly basis. The board information. The code has also been hosted on the website of the
reviews the compliance of all applicable laws every quarter and company.
ATTENDANCE AT BOARD, COMMITTEE AND GENERAL MEETINGS gives appropriate directions, wherever necessary.
COMPLIANCE CERTIFICATE ON CORPORATE
Name of the directors Board Audit Stakeholders Nomination & Business Risk Corporate IT strategy Attendance SECRETARIAL AUDIT GOVERNANCE
(Attendance committee relationship remuneration committee management social committee at last AGM The company annually conducts a secretarial audit by an The certificate on compliance of corporate governance norms from
%) committee committee committee responsibility
independent practicing company secretary. For the year ended a practicing company secretary is annexed to the report.
committee
31 March, 2021, M/s. R. Sridharan & Associates, company secretaries,
have conducted the secretarial audit and the certificate was placed CEO/CFO CERTIFICATION
Mr. Vellayan Subbiah^ 4 (100%) NA NA 2 2 NA 1 1 NA
before the board and attached to this report. Executive director and chief financial officer have given a compliance
Mr. N. Ramesh Rajan 7 (100%) 5 NA 5 NA 5 NA NA Yes
RECONCILIATION OF SHARE CAPITAL AUDIT certificate to the board with regard to financial statements and
Mr. Ashok Kumar Barat 7 (100%) 5 NA 5 3 5 NA 4 Yes internal control systems as contemplated under regulation 17(8) of
Ms. Bhama Krishnamurthy 7 (100%) 5 NA NA NA 5 2 NA Yes As required by the Securities and Exchange Board of India (SEBI), the Listing Regulations.
quarterly audit of the company’s share capital is being carried
Mr. Rohan Verma 6 (86%) NA 1 NA NA NA NA 4 Yes
out by an independent auditor with a view to reconcile the total SUBSIDIARY COMPANIES
Mr. M.A.M. Arunachalam* 3 (100%) 1 NA NA 2 1 NA NA NA share capital admitted with National Securities Depository Limited
A policy on material subsidiaries has been formulated and the
Mr. Anand Kumar# 2 (100%) NA NA NA NA NA NA NA NA (NSDL) and Central Depository Services (India) Limited (CDSL)
same is posted on the company’s website (weblink: https://
and held in physical form, with the issued and listed capital. The
Mr. Bharath Vasudevan# 2 (100%) NA NA NA NA NA NA NA NA www.cholamandalam.com/company-policies.aspx). The financial
certificate issued by an independent practicing company secretary
Mr. Ravindra Kumar Kundu 7 (100%) NA NA NA NA 1 NA NA Yes is submitted to the stock exchanges and is also placed before the statements of subsidiary companies are tabled at the audit
board of directors. committee and board meetings every quarter. The company does
Mr. M.M. Murugappan@ 4 (100%) NA 2 3 1 NA 1 NA Yes
not have any material subsidiary whose net worth exceeds 10% of
Mr. Arun Alagappan$ 5 (100%) NA 2 NA 1 3 2 3 Yes CODE OF CONDUCT the consolidated income or net worth of the company during the
^ - Appointed as an additional director effective 11 November, 2020 The board has laid down a “Code of Conduct” for all the board immediately preceding financial year.
* - Appointed as an additional director effective from 29 January, 2021 members and the senior management of the company and the DISCLOSURES
# - Appointed as an additional director effective 16 March, 2021 Code of Conduct has been posted on the website of the company.
@ - Resigned as chairman and director with effect from the close of business hours of 11 November, 2020 Annual declaration confirming compliance of the code is obtained Related party transactions
$ - Resigned as managing director and director of the company with effect from end of day 14 February, 2021 from every person covered by the code of conduct. A declaration to All transactions with related parties that were entered into during
this effect signed by Mr. Ravindra Kumar Kundu, executive director is the financial year were in the ordinary course of business and
GENERAL BODY MEETINGS
attached to this report. were on an arm’s length basis. There were no material transactions
Particulars of venue, date and time of the previous three annual general meetings are given below:
CODE FOR PREVENTION OF INSIDER TRADING with related parties i.e., transactions of the company of material
Year Date and Time Venue nature, with its promoters, the directors or the management, their
The board has adopted a code to regulate, monitor and report subsidiaries or relatives, etc., that may have potential conflict with
2018 26 July, 2018 at 4.00 p.m. The Music Academy, New No.168 (Old No.306), T.T.K Road, trading by insiders in securities of the company. The code inter alia
the interest of company at large.
requires pre-clearance for dealing in the securities of the company
Royapettah, Chennai - 600 014
and prohibits the purchase or sale of securities of the company Suitable disclosures as required in compliance with accounting
2019 30 July, 2019 at 3.30 p.m. -do- standards with related parties are disclosed in note 37 of the
while in possession of unpublished price sensitive information in
2020 30 July, 2020 at 3.30 p.m. Video Conferencing relation to the company and during the period when the trading financial statements in the annual report.
69 70
The board has put in place a policy on related party transactions and
the same has been uploaded on the company’s website (weblink:
Penalties
There were no penalties, strictures imposed on the company by Certificate from Company Secretary in Practice
https:// www.cholamandalam.com/company-policies.aspx). stock exchange(s) or SEBI or any statutory authority, on any matter
related to capital markets, during the last three years.
[Pursuant to Regulation 34 (3) read with Schedule V Para-C Sub clause (10) (i) of Securities and
Fee disclosures as required by clause 10(k), Part C, Schedule V
of the Listing Regulations: COMPLIANCE WITH CORPORATE GOVERNANCE NORMS Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015]
Total fees for all services paid by the company and its subsidiaries, The company has complied with all mandatory requirements
of corporate governance norms as enumerated in chapter IV of The Members,
on a consolidated basis, to M/s. S.R. Batliboi & Associates (Batliboi),
the Listing Regulations. The requirements of regulation 17 to CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
statutory auditors of the company and other firms in the network regulation 27 of the Listing Regulations and clauses (b) to (i) of
entity of which the statutory auditor is a part, as included in the Dare House, No. 2, N S C Bose Road,
the sub-regulation (2) of regulation 46 to the extent applicable
consolidated financial statements of the company for the year Parrys, Chennai - 600001
to the company have been complied with as disclosed in this
ended 31 March, 2021, is as follows: report. The company has also adopted the following discretionary
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of CHOLAMANDALAM
requirements specified in Part E of Schedule II in terms of regulation
` in lakhs INVESTMENT AND FINANCE COMPANY LIMITED (CIN: L65993TN1978PLC007576) having its Registered Office at Dare House No. 2,
27(1) of the Listing Regulations:
Particulars Amount N S C Bose Road, Parrys, Chennai – 600001 (hereinafter referred to as “The Company”) as produced before us by the Company for the
i. Modified opinion(s) in audit report: Company’s financial
Fees for audit and related services paid to 99.03 purpose of issuing this certificate, in accordance with Regulation 34 (3) read with Schedule V Part-C Sub clause 10 (i) of the Securities and
statements have unmodified audit opinions.
Batliboi and affiliates firms and to entities of the Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
ii. Reporting of internal auditor: The internal auditors of the
network of which the statutory auditor is a part
company directly report to the audit committee. In our opinion and according to the verifications (including Director Identification Number (DIN) Status at the portal www.mca.gov.in)
Other fees paid to Batliboi & affiliates firms 19.93 MEANS OF COMMUNICATION and based on such examination as well as information and explanations furnished to us, which to the best of our knowledge and belief
and to entities of the network of which the The audited financial results, quarterly results and other major were necessary for the purpose of issue of this certificate and based on such verification as considered necessary, we hereby certify that
statutory auditor is a part announcements like notices of board meetings, book closures were none of the Directors as stated below on the Board of the Company as on 31st March 2021 have been debarred or disqualified from being
Total fees* 118.96 published in Business Line and Dinamani and are also available on appointed or continuing as Directors of Companies by the Securities and Exchange Board India / Ministry of Corporate Affairs or any such
*Includes input tax credit expensed wherever applicable the company’s website www.cholamandalam.com. Press releases other statutory authority.
are given in the leading newspapers and also posted on the
Disclosure under Sexual Harassment of Women at Workplace company’s website. The investors’ presentations and call transcripts S.NO DIN NAME OF THE DIRECTOR DESIGNATION DATE OF APPOINTMENT
(Prevention, Prohibition and Redressal) Act, 2013: are also posted on the company’s website. The company has posted
a shareholder’s satisfaction survey on its website to ascertain the 1. 01138759 Vellayan Subbiah Non-Executive - Chairman 11/11/2020
During the year, the company had not received any complaint
level of the shareholders satisfaction. Further, the shareholding 2. 00492930 Ashok Kumar Barat Non-Executive - 31/10/2017
under the Sexual Harassment of Women at Workplace (Prevention,
pattern and presentations made to analysts and investors from Independent Director
Prohibition and Redressal) Act, 2013.
time to time are also displayed on the website of the company.
Whistle blower policy / vigil mechanism 3. 01628318 N. Ramesh Rajan Non-Executive - 30/10/2018
MANAGEMENT DISCUSSION & ANALYSIS Independent Director
The company has established a whistle blower mechanism to
A management discussion & analysis forms part of the annual 4. 01797489 Rohan Verma Non-Executive - 25/03/2019
provide an avenue to raise concerns. The mechanism provides
for adequate safeguards against victimisation of directors / report. Independent Director
employees/ customers who avail of the mechanism and also GENERAL SHAREHOLDER INFORMATION 5. 02196839 Bhama Krishnamurthy Non-Executive - 31/07/2019
for appointment of an ombudsperson who will deal with the Independent Director
A separate section on the above has been included in the annual
complaints received. The policy also lays down the process to be 6. 00202958 M.A.M. Arunachalam Non-Executive - Director - 29/01/2021
report.
followed for dealing with complaints and in exceptional cases, also Additional Director
provides for direct access to the chairperson of the audit committee. On behalf of the board
7. 00818724 Anand Kumar Non-Executive - Independent Director - 16/03/2021
During the year, no personnel have been denied access to the
audit committee. The policy is available on the website (weblink: Place : Chennai Vellayan Subbiah Additional Director
https://www.cholamandalam.com/company-policies.aspx). Date : 7 May, 2021 Chairman 8. 09104808 Bharath Vasudevan Non-Executive - Independent Director - 16/03/2021
Additional Director
9. 07337155 Ravindra Kumar Kundu Executive Director 23/01/2020
Declaration on Code of Conduct Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management of the
Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
This is to confirm that the board has laid down a Code of Conduct for all board members and senior management of the company. The
Company.
Code of Conduct has also been posted on the website of the company. It is further confirmed that all directors and senior management For R. Sridharan & Associates
personnel of the company have affirmed compliance with the Code of Conduct of the company for the year ended 31 March, 2021, as Company Secretaries
envisaged in schedule V under regulation 34 (3) of the Listing Regulations.
CS. R. Sridharan
CP No. 3239
Place : Chennai Ravindra Kumar Kundu FCS No. 4775
Date : 7 May, 2021 Executive Director Place : Chennai
UIN : S2003TN063400
Date
: May 7, 2021 UDIN : F004775C000249767
71 72
Independent certificate on compliance with the conditions of

Corporate Governance as per provisions of Chapter IV of Securities General Shareholders Information
and Exchange Board of India (Listing Obligations and Disclosure REGISTERED OFFICE
Requirements) Regulations, 2015, as amended “Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai - 600 001.
CORPORATE IDENTITY NUMBER (CIN)
L65993TN1978PLC007576
ANNUAL GENERAL MEETING
Date Time Mode

The Members, 30 July, 2021 3.30 p.m. The annual general meeting (AGM) will be held through video conference in compliance
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED with general circular numbers 20/2020 read with 02/2021 and all other applicable
guidelines and circulars issued by the Ministry of Corporate Affairs (MCA) and Securities
Dare House, No. 2, N S C Bose Road,
and Exchange Board of India (SEBI).
Parrys, Chennai - 600001
We have examined documents, books, papers, minutes, forms and returns filed and other relevant records maintained FINANCIAL YEAR
by CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED, (CIN: L65993TN1978PLC007576) having its Registered Office 1 April to 31 March.
at Dare House, No.2, N.S.C Bose Road, Parrys, Chennai- 600001, for the purpose of certifying compliance of the conditions of Corporate
DATES OF BOOK CLOSURE
Governance under Regulation 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V to the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Monday, 26 July, 2021 to Friday, 30 July, 2021 (both days inclusive).
Requirements) Regulations, 2015 for the financial year ended March 31, 2021. We have obtained all the information and explanations, DIVIDEND PAYMENT DATE
which to the best of our knowledge and belief were necessary for the purpose of certification. The board at its meeting held on 29 January, 2021 had approved payment of interim dividend on the equity shares for the year ended
31 March, 2021 at the rate of 65% (` 1.30 per equity share of ` 2 each) and fixed the record date as 10 February, 2021. The dividend was
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
paid to all the shareholders by 25 February, 2021.
the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. The board at its meeting held on 7 May, 2021 has further recommended payment of final dividend of 35% (` 0.70 per equity share of
` 2 each), for the year ended 31 March, 2021. The same will be paid within 30 days upon declaration by the shareholders at the ensuing
In our opinion and on the basis of our examination of the records produced, explanations and information furnished, we certify that annual general meeting.
the Company has complied regarding the conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and
LISTING ON STOCK EXCHANGES
Disclosure Requirements) Regulations, 2015 as amended for the financial year ended 31st March, 2021.
Equity Shares:
This Certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the
BSE Limited National Stock Exchange of India Limited
management has conducted the affairs of the Company.
Floor 25, Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No.C-1, G Block, Bandra Kurla Complex,
Dalal Street, Fort, Mumbai - 400 001. Bandra (E), Mumbai - 400 051
For R. Sridharan & Associates
Stock Code: 511243 Stock Code: CHOLAFIN EQ
Company Secretaries
Debt Securities:
CS. R. Sridharan
CP No. 3239 Debt securities are listed in the Wholesale Debt Market (WDM) Segment of NSE and F - Class Segment of BSE Limited.
FCS No. 4775 Payment of Listing fees
Place : Chennai
UIN : S2003TN063400
Date
: May 7, 2021 UDIN: F004775C000249756 The listing fees for equity shares for FY 21 were paid to the above stock exchanges.
73 74
SHARE PRICE DATA TRUSTEES FOR THE DEBENTURE HOLDERS

Month BSE Limited National Stock Exchange of India Limited The company has appointed IDBI Trusteeship Services Limited and Catalyst Trusteeship Limited debenture trustees registered with SEBI,
High Low Vol. High Low Vol.
(in `) (in `) (in `) (in `) as the trustees on behalf of the debenture holders.
April, 2020 177.40 124.65 64,42,924 176.60 124.65 17,20,396
The contact details of the Trustees are as follows:
May, 2020 158.35 122.15 1,11,45,897 159.45 122.10 18,98,719
1. IDBI Trusteeship Services Limited 2. Catalyst Trusteeship Limited
June, 2020 206.20 142.65 2,47,04,465 205.95 141.70 30,79,533
Asian Building, Ground Floor, GDA House, Plot No. 85, Bhusari Colony (Right),
July, 2020 222.45 196.70 1,26,56,621 222.55 189.40 18,41,492 Paud Road, Pune - 411 038
17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001
August, 2020 249.75 200.65 76,09,236 249.75 200.55 14,31,740 Phone : 020-2528 0081
Phone : 022-40807035
September, 2020 251.75 220.90 64,01,567 251.80 220.55 11,48,164 Website : www.catalysttrustee.com
Website :
www.idbitrustee.co.in E-mail : [email protected]
October, 2020 273.10 236.95 36,22,240 261.00 237.25 12,25,336
E-mail :
[email protected] Contact person : Ms. Madhura Gokhale - Sr. Manager
November, 2020 389.50 292.75 36,60,750 360.20 273.25 16,95,380 Contact person : Ms. Anjalee Athalye, Asst. VP (Operations)
December, 2020 387.85 354.50 40,58,638 388.70 354.85 15,63,186
Dematerialisation of shares and liquidity
January, 2021 457.55 397.30 53,30,965 457.45 387.65 17,19,045
February, 2021 531.55 439.15 62,69,145 532.75 397.85 18,71,383 The company’s shares are tradable in the electronic form only. The company has established connectivity with National Securities
March, 2021 570.55 522.15 36,93,896 570.40 518.90 12,95,123 Depository Limited and Central Depository Services (India) Limited. As of 31 March, 2021 99.88% of the company’s shares were held in
dematerialised form. The company’s shares are regularly traded on National Stock Exchange of India Limited and BSE Limited under the
ISIN: INE121A01024.
Share Transfer System

Cholamandalam share price performance in comparison
Effective 1 April, 2019, SEBI has disallowed listed companies from accepting request for transfer of securities which are held in physical
with NSE NIFTY
16000 600
form. The shareholders who continue to hold shares in physical form after this date, will not be able to lodge the shares with company / its
RTA for further transfer. Shareholders shall mandatorily convert them to demat form if they wish to effect any transfer. Only the requests
15000
for transmission and transposition of securities in physical form will be accepted by the company / RTA. There are still 2,296 shareholders
500
14000 holding 0.12% of the company’s shares in physical form. Those shareholders whose shares are held in physical mode may consider moving
13000
to dematerialised mode as they will not be able to transfer them in physical mode and also it is a safer and easier way to hold.
400
NSE NIFTY
Chola (in `)
12000
Nomination facility
300 The company is accepting nomination forms from shareholders in the prescribed form. All those who are desirous of making a nomination
11000
are requested to contact the RTA. The shareholders holding shares in dematerialised form are requested to forward their nomination
10000
200 instructions to the concerned depository participants. Nomination is optional and can be cancelled or varied by a shareholder at any time.
9000
Payment of dividend through NACH
8000 100
The company uses National Automated Clearing House (NACH) facility for payment of dividends directly to the bank accounts of
May/20
Sep/20
Jan/21
Feb/21
Mar/21
Apr/20
Jun/20
Aug/20
Oct/20
Nov/20
Jul/20
Dec/20
shareholders. The shareholders may use the facility by providing their bank account number to the depository participant / RTA, as may be
NIFTY Cholamandalam Share Price relevant, to enable the company to effect the dividend payment through the NACH mode.
Green initiative in corporate governance
REGISTRAR AND SHARE TRANSFER AGENT The Companies Act, 2013 and the underlying rules permit companies to send various documents including the financial statements
through electronic mode to the shareholders. In compliance with the circulars issued by MCA and SEBI, electronic copies of the notice
KFin Technologies Private Limited (KFin) is the Registrar and Share Transfer Agent (RTA) for handling the physical and electronic registry
of the AGM and annual report for FY2021 will be sent to all the shareholders whose email addresses are registered with the company /
work. The shareholders are requested to send their share related requests / queries to the RTA.
depository participants. Shareholders are requested to register their e-mail ID with the depository participant, if the holding is in electronic
The contact details of the RTA are as follows: mode. If shares are held in physical mode, the shareholders are requested to furnish their email addresses to RTA for receiving the above
KFIN Technologies Private Limited documents by electronic mode.
(Unit: Cholamandalam Investment and Finance Company Limited)
Details of complaints received and redressed
Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,
Hyderabad - 500 032, Telengana | Toll Free No.: 18003094001| Fax No: 040-2342 0814 During the year, there was no investor service complaints were received. No investor service complaint was pending as at 31 March, 2021.
Email: [email protected] | Website: www.kfintech.com or https://ris.kfintech.com/
Contact person: Mr. Rajkumar Kale - Senior Manager - Corporate Registry
75 76
Contact details of the designated official for assisting and handling investor grievances Transfer of Equity Shares to IEPF
In terms of regulation 46(2)(k) of the Listing Regulations, the contact details of the designated official for assisting and handling investor In accordance with the provisions of section 124 and 125 of the Act, read with Investor Education and Protection Fund Authority (Accounting,
grievances are as below: Audit, Transfer and Refund) Rules, 2016 (IEPF), the underlying shares of all dividends which remain unpaid/unclaimed for a period of seven
consecutive years be transferred to Investor Education and Protection Fund (IEPF). As required under the said rules, the company had
Ms. P. Sujatha, Company Secretary
“Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai‐600 001 published a notice in the newspapers inviting the shareholders attention to the aforesaid rules. The company had also sent out individual
Phone: 044-40907172 (bd.) 40907055 (d) | Fax: 044-25346464 communication to the concerned shareholders whose shares are liable to be transferred to IEPF Account, pursuant to the said rules and
E‐mail: [email protected] | [email protected] | [email protected] also displayed the details of such shareholders and shares due for transfer on the website of the company at www.cholamandalam.com
in line with the requirements. During the year, the company had transferred 81,800 shares pertaining to 108 shareholders to the demat
CREDIT RATING account maintained by IEPF authority. Shareholders may note that both the unclaimed dividend and corresponding shares transferred to
The credit rating details of the company as at 31 March, 2021 are as follows: IEPF including all benefits accruing on such shares, if any, can be claimed from IEPF authority, as per the procedure prescribed in the rules.
Rating Agency Term Type Rating as on 31 March, 2021 Revisions during the year Obtained during the year No claim shall lie in respect thereof with the company.
ICRA LT NCD / SD [ICRA]AA+ with Stable Outlook NA NCD MLD - September 8, 2020 Unclaimed Suspense Account
/ CC / TL NCD - February 8, 2021 In terms of regulation 34(3) of the Listing Regulations, all the shares issued in physical form pursuant to a public issue or any other issue,
LTL/CC - March 22, 2021 which remain unclaimed had been dematerialised and transferred to a folio in the name of unclaimed suspense account. The voting rights
LT PD [ICRA]AA with Stable Outlook NA PDI - March 2, 2021 of these shares shall remain frozen till the rightful owner of such shares claims the shares.
ST CP / [ICRA]A1+ NA The details regarding the shares which are in the unclaimed suspense account are given below:
WCDL
CRISIL ST CP [CRISIL]A1+ NA S. No. Description Total No. of cases Total Shares
LT SD [CRISIL]AA+ / Stable NA 1 No. of shareholders and outstanding shares lying in the unclaimed suspense account 2 950
CARE LT SD CARE AA+ NA at the beginning of the year
LT PD CARE AA NA 2 No. of shareholders who approached for transfer of shares from unclaimed suspense - -
INDIA Ratings LT NCD / SD IND AA+ with Stable Outlook NA NCD / SD - December 11, 2020 account during the year
3 No. of shareholders to whom shares were transferred from the unclaimed suspense - -
and Research LT PD IND AA with Stable Outlook NA PD - December 11, 2020
account during the year
Private Ltd 4 No. of shares transferred to IEPF authority Nil Nil
Note: Note: LT – Long term loan, ST – Short term loan, NCD – Non-convertible debenture, SD – Subordinated debt instrument, CC – Cash 5 No. of shareholders and outstanding shares lying in the unclaimed suspense 2 950
credit, TL – Term loan, CP – Commercial paper, WCDL – Working capital demand loans, PD – Perpetual debt instrument account at the end of the year
Payment of unclaimed / unpaid dividend

In respect of unclaimed dividends, the company sends periodical reminders to the shareholders before transferring the unclaimed Distribution of Shareholding as on 31 March, 2021
dividends to the investor education and protection fund (IEPF) established by the central government. The dividends that are lying
unclaimed / unpaid with the company for a period of seven consecutive years are transferred from time to time to IEPF. The company has Sl. No. Category (Shares) No. of Holders % to Holders No. of Shares % to Equity
remitted ` 1.64 lakhs to IEPF during the year.
1 1 – 500 71,715 79.45 8,386,121 1.02
Year wise details of the dividends to be transferred to IEPF are given below:
2 501 – 1000 9,866 10.93 70,92,478 0.86
FY to which the dividend relates Date of declaration Due date for transfer to IEPF 3 1001 – 3000 5,720 6.34 95,94,654 1.17
4 3001 – 10000 1,902 2.11 1,00,56,503 1.23
2014 - Final 31 July, 2014 04 September, 2021
5 10001 – 20000 401 0.44 56,93,861 0.69
2015 - Interim 27 January, 2015 03 March, 2022
6 20001 – 100000 367 0.41 1,64,87,484 2.01
- Final 31 July, 2015 04 September, 2022
7 100001 and above 291 0.32 76,27,24,028 93.01
TOTAL 90,262 100.00 82,00,35,129 100.00
- Final 27 July, 2017 31 August, 2024
- Final 26 July, 2018 30 August, 2025
2020 - Interim I 12 December, 2019 16 January, 2027
- Interim – II 26 February, 2020 02 April, 2027
77 78
Business Responsibility Report

SHAREHOLDING PATTERN
Category (Shares) As at 31 March, 2021

No. of % of
Shares shareholding
Promoter and promoter group 42,32,97,948 51.62
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Foreign Portfolio Investors 13,52,19,517 16.49
Mutual Funds / Trust / Banks / Financial Institutions / AIFs / QIBs 20,04,80,999 24.45 1. Corporate Identity Number (CIN) of the company: L65993TN1978PLC007576
Private Corporate Bodies / NBFCs 58,27,857 0.71 2. Name of the company: Cholamandalam Investment and Finance Company Limited
Resident Individuals and others 5,52,08,808 6.73 3. Registered office address: “Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai - 600001
TOTAL 82,00,35,129 100.00 4. Website: www.cholamandalam.com
5. E-mail id: [email protected]
6. Financial Year reported: 01.04.2020 - 31.03.2021
OUTSTANDING GDRs/ADRs ETC.
7. Sector(s) that the company is engaged in (industrial activity code-wise):
The company has not issued any GDR / ADR or any convertible instruments that is likely to impact the equity share capital of the company.
NIC Code Group Description
COMMODITY PRICE RISK / FOREIGN EXCHANGE RISK AND COMMODITY HEDGING ACTIVITIES K 649 Financial Services - Lending
The company is in financial services business and has no exposure to commodity price risk and commodity hedging activities and hence 8. List three key services that the company provides (as in balance sheet):
the disclosure pertaining to SEBI circular dated 15 November, 2018 is not applicable. In respect of certain computer related purchases Key services rendered by the company are
involving payment in foreign currency wherein the payment is made basis the rate prevailing on the date of payment and as per the terms 1. Vehicle Finance
mentioned in contract. To this extent, if the currency movement is adverse, the payment would be impacted by such currency exposure. 2. Loan against Property, Home Loans
LOCATION 3. SME Loans
The company's registered office is in Chennai and it operates out of 1,137 branches across the country. 9. Total number of locations where business activity is undertaken by the company:
(a) Number of international locations (Provide details of major 5): Nil
On behalf of the board (b) Number of national locations: 1,137 branches
10. Markets served by the company - local / state / national / international: National
SECTION B: FINANCIAL DETAILS OF THE COMPANY

Place : Chennai Vellayan Subbiah
1. Paid Up capital: ` 164.07 crores
2. Total turnover: ` 9,516.01 crores
3. Total profit after taxes: ` 1,514.91 crores
4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): Refer CSR report
5. List of activities in which expenditure in 4 above has been incurred: Refer CSR report
SECTION C: OTHER DETAILS

1. Does the company have any subsidiary company/companies?
Yes, the company has two subsidiaries as on 31.03.2021 namely:
1. Cholamandalam Securities Limited and
2. Cholamandalam Home Finance Limited
2. Do the subsidiary company/companies participate in the Business Responsibility (BR) initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(s):
BR initiatives of the parent company are generally followed by the subsidiary companies to the extent possible.
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%]:
Not applicable.
SECTION D: BR INFORMATION
1. Details of director/directors responsible for BR:
(a) Details of the director/director responsible for implementation of the BR policy/policies:
1. Director Identification Number (DIN): 07337155
2. Name: Mr. Ravindra Kumar Kundu
3. Designation: Executive Director
79 80
(b) Details of the BR head: SECTION E: PRINCIPLE-WISE PERFORMANCE

SN. Particulars Details Principle 1 - To conduct and govern themselves with ethics, transparency and accountability
1 DIN (if applicable) 07337155
1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/No. Does it extend to the group/joint ventures/
2 Name Mr. Ravindra Kumar Kundu
suppliers/contractors/NGOs/others?
3 Designation Executive Director
4 Telephone number 044 - 4090 7172 The policy extends to the company, its subsidiaries and its business associates. The Company’s commitment to ethical and
5 E-mail id [email protected] lawful business conduct is a fundamental shared value of the Board of Directors, the senior management and all employees of
the Company. The Company adopts highest governance standards and its employees adhere to the Robust “Code of Conduct
2. Principle-wise (as per NVGs) BR Policy/policies and Ethics Policy”. The employees are also required to comply with relevant legal, regulatory and internal compliance
requirements in letter and spirit.
(a) Details of compliance (Reply in Y/N)
2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by
SN. Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P9 the management? If so, provide details thereof, in about 50 words or so.
1 Do you have a policy/policies for all the principles? Y Y Y Y Y Y Y Y Y
Particulars Received Resolved Pending
2 Has the policy being formulated in consultation Y Y Y Y Y Y Y Y Y
Customer complaints 1,169 1,177* 0
with the relevant stakeholders?
Shareholder / Debenture holder 0 0 0
3 Does the policy conform to any national/international Y* Y* Y* Y* Y* Y* Y* Y* Y*
*8 pending complaints pertaining to FY 20 were resolved during the year.
standards?
Principle 2 - To provide services that are safe and contribute to sustainability throughout their life cycle
4 Has the policy being approved by the board? If yes, Y Y Y Y Y Y Y Y Y
has it been signed by MD/owner/CEO/ appropriate 1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
board director? he company being an NBFC is not engaged in a business concerning design of products that could raise social concerns,
T
5 Does the company have a specified committee of the Y Y Y Y Y Y Y Y Y economic risks and/or hazardous opportunities.
board /director /official to oversee the implementation However, Chola being a financial service company, has designed its financial lending activities to ensure financial inclusion of
of the policy? various marginalized sections of the society; predominantly in geographies with limited presence of organized financiers.
6 Indicate the link for the policy to be viewed online? https://www.cholamandalam.com/company-policies.aspx Chola’s Vehicle Finance business primarily focuses on transport entrepreneurs, first time buyers and first-time users thereby
7 Has the policy been formally communicated to all Y Y Y Y Y Y Y Y Y ensuring financial inclusion of various marginalised sections of society. Chola is also present in geographies where there is
relevant internal and external stakeholders?
limited presence of organized financiers thereby providing access to easy and affordable loans even in the remoter parts of the
country. A significant portion of the company’s loans are extended for “Priority Sector Lending” in line with the Government
8 Does the company have in-house structure to Y Y Y Y Y Y Y Y Y norms. Most of the customers start as drivers and Chola provides them with access to finance in order to help them acquire
implement the policy /policies? their own vehicles. Chola continues to be closely associated with the borrowers in their life journey and product life cycle by
9 Does the company have a grievance redressal Y Y Y Y Y Y Y Y Y providing loans for vehicle acquisition, vehicle maintenance, protection of asset and life by financing insurance and proving
mechanism related to the policy/policies to address loans for working capital management, refinance on assets for meeting exigencies, household expenses, festival, education,
stakeholders’ grievances related to the policy/policies? family needs etc. Chola has now entered the sphere of financing for electric vehicles to make them more prevalent in the
economy and plans to establish its presence in this domain.
10 Has the company carried out independent audit/ Y Y Y Y Y Y Y Y Y
evaluation of the working of this policy by an The Company has a strong presence in the road transportation, infrastructure & construction industry and agricultural sector.
Chola takes conscious efforts taking due account of environment and social considerations. Having said this, the company
internal or external agency?#
does not extend loans and filters out through its board approved credit policies, entities that do not meet certain strict ESG
* National standards criteria such as no child labor, borrowers lacking in appropriate governance or ethical practices, among others.
#
The Company has in place an internal task force which evaluates the working of this policy. The company emphasises on lending for the purchase of commercial vehicles, tractors, construction equipment, MUV, etc,
that add value to the economy and other products like cars, two wheelers which enhance the quality of life and augment the
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: Not applicable. social status of the borrower. The Company is one of the largest financiers in small & medium commercial vehicle segments.
Chola is also one of the largest financers of tractors, thus widely contributing to the agricultural sector, thereby boosting the
3. Governance related to BR rural economy.
(a) Indicate the frequency with which the board of directors, committee of the board or CEO to assess the BR performance of the Chola’s SME loans enable people including vegetable owners, salon owners, flour mill owners and micro business owners
company. Within 3 months, 3-6 months, Annually, More than 1 year. who may not have banking access to grow their business and thereby enhance their standard of living.
The BR performance is assessed annually. In addition to this, the ESG performance and implementation plans are discussed Chola’s LAP division offers secured long-term loans to borrowers also within Micro Small and Medium Enterprise (MSME)
during Board meetings. The Company understands the need to formalize accountability for ESG related aspects and are community, against their residential or commercial properties. Primary focus of this division is on self-employed
in the process of setting up an internal steering committee who will be primarily responsible for implementation of the non-professionals (Kirana stores, small scale manufacturing units, Retail shops, etc.) who need financial support to either
start new business or expand existing businesses. Chola is one of the key players in loan against property business in Indian
ESG policy across the company.
NBFC space and plays an important role in developing MSME community, thereby contributing positively to the growing
(b) Does the company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is Indian economy. Most of the MSME customers are unorganised and have not been catered by formal banks, thus bridging
published? the credit gap faced by them.
Yes, we publish a BR annually. https://www.cholamandalam.com/annual-reports.aspx. Hence, Chola is enabling people to enter a better life through economic upliftment and social growth.
81 82
2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product
Principle 4 - Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
(optional):
disadvantaged, vulnerable and marginalized.
Not applicable. The company’s products are structured to focus more towards social aspects.
1. Has the company mapped its internal and external stakeholders? Yes/No.
3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your
Yes.
inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.
Not applicable. 2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders.
4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding The Company has set up 89% of its branches in Tier-III, Tier-IV, Tier V and Tier-VI towns ensuring financial inclusion of
their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors? vulnerable sections of the society who are also first time buyers and first time users. Chola believes that affordable and
appropriate access to financial services is a key driver of economic growth, poverty alleviation and prosperity. Access to
Yes, the company procures goods and services from local and small producers, including communities surrounding their

formal finance can boost job creation, reduce vulnerability to economic shocks and increase investments in human capital
place of work wherever possible. The organization lays emphasis on local hiring, especially since it operates largely in Tier III,
for the less aware communities.
IV, V and VI cities it helps to connect with customers better and also contribute to the employability in the local area.
5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste 3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders.
(separately as 10%). Also, provide details thereof, in about 50 words or so. If so, provide details thereof, in about 50 words or so.
Not applicable. The Company initiatives on improving accessibility to finance are covered in point 2 above. Further to this, Chola also has a
CSR Committee in place which works on strategies to include expectations of different stakeholders including customers &
Principle 3 - To promote the well-being of all employees
communities who are at the bottom of the social pyramid. The company initiates various projects through their CSR initiatives
1. Please indicate the total number of employees - 7,620 for the upliftment of the stakeholders. The major focus areas of CSR at Chola include:
2. Please indicate the total number of employees hired on temporary/contractual/casual basis - 0
1. Healthcare
3. Please indicate the number of permanent women employees - 228
2. Access to education & rural sports.
4. Please indicate the number of permanent employees with disabilities - 0
5. Do you have an employee association that is recognized by management - No 3. WASH (Water, Sanitation and Hygiene)
6. What percentage of your permanent employees is members of this recognized employee association? - Not applicable. 4. Environmental Sustainability
7. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last 5. Rural Development
financial year and pending, as on the end of the financial year. 6. Promoting Arts, Culture and Heritage
SN. Category No. of complaints filed No. of complaints pending as 7. Supporting Senior Citizens
during the financial year on end of the financial year
8. Holistic Development of Marginalized Communities of the transport Sector
1 Child labour/forced labour/involuntary labour - -
2 Sexual harassment - - Principle 5 - Businesses should respect and promote human rights
3 Discriminatory employment - - 1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/Others?
8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?
The organization continuously strives towards establishing a safe working culture by imparting various programs. Chola
The policy on human rights covers the company, customers and its associates. Human rights are a matter of great importance
has a dedicated Environment Health and Safety team which is committed to maintaining highest standards of health, safety at Chola. The Company appreciates that human rights are inherent, universal, indivisible and interdependent in nature.
and wellbeing of employees. 15 Live webinar programs in association with external agencies for employees and their family Care is taken to integrate respect for human rights in the management systems, wherever applicable, in particular through
members have also been organized, with a focus on creating awareness on various health issues and ways to handle COVID. assessing and managing human rights impacts of operations. Access to Grievance redressal mechanisms set up for all
The company has also designed processes and practices during the year to ensure interaction with the employees on a individuals impacted by the business is provided. The Company recognizes and respects the human rights of all relevant
periodic basis to check on their safety and also to educate on precautions to be taken. This is being carried out through one stakeholders and groups within and beyond the workplace, including that of communities, consumers and vulnerable and
on one calls, mailers and posters. marginalized groups and the business units within their sphere of influence, endeavour to promote the awareness and
For the purpose of uplifting employee’s mental health during the lockdown period, various virtual engagement programs realization of human rights across their value chain and will not complicit with human rights abuses by a third party.
and celebrations were organized. Around 1,500 employees and their family members actively participated in the programs. 2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the
The company also rolled out various behavioural and emotional programs as it has been wading through the Pandemic management?
reflecting its commitment towards keeping welfare of the employees at priority.
The company received 1169 customer complaints during the financial year. 99.40% customer complaints were resolved
The organization also conducts various awareness training sessions. One such program includes Chola’s road safety training satisfactorily by the management as on 31 March 2021. These are actively reviewed and monitored on a monthly basis by a
module which was developed based on Indian road accident pattern as a pilot in North zone, with a purpose of bringing customer grievance redressal committee under the chairmanship of executive director. The Board also reviews the customer
awareness and prevent accidents.
complaints on a quarterly basis.
To reach greater heights and improve the productivity, various specialized programs were organized for employees. Around
Principle 6 - Business should respect, protect, and make efforts to restore the environment
4,400 employees attended these training programs to enhance their skills.
1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/
Various other behavioural and process related training were also organized for employees to enhance the productivity,
NGOs/ others.
process improvements and interpersonal skills. In order to upgrade the skillset, employees were also introduced to coaching
clinics in order to focus on new techniques and excel in their roles.
83 84
The ESG policy is applicable only to the company as of now. The company’s ESG policy highlights important aspects of its Yes. Representations had been submitted to the Government and regulatory authorities on various matters for the

responsibility towards environment protection. This is backed by Chola’s commitment to support businesses that have improvement of public good on areas relating to governance and administration, economic reforms, inclusive development
environment friendly business practices. Chola is also on its journey towards digitalizing all its systems aiming at resource policies and sustainable business principles.
efficiency (paper conservation) at all its office branches. Going forward, the organization aims to develop policies that
support sustainable development in every aspect. In most of the office premises, measures such as water conservation, Principle 8 - Businesses should support inclusive growth and equitable development
electricity saving and reducing emissions are effective. Company has stringent systems in place for disposal of e-waste in 1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.
all its branches. Chola has partnered with authorized vendors to ensure effective disposal and management of e-waste. The
company is also in the process of improving energy efficiency practices within the office premises. Chola actively supports Yes, please refer CSR Report.
micro businesses in the Renewable energy sector, who make spare parts or are part of value chain of renewable energy 2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other
components, ensuring that its products benefit the larger environment. Chola will be extending this policy to its subsidiaries organization?
also in the near future.
Please refer CSR Report.
2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc?
Y/N. If yes, please give hyperlink for web page etc. 3. Have you done any impact assessment of your initiative?
Yes. Chola’s efforts on environmental sustainability are primarily inclined towards the protection of endangered species of We have done impact assessment study in FY 21 for the Health, Environment, Rural Development, Arts & Culture and WASH
birds and rare animals. https://www.cholamandalam.com/community-relations.aspx projects.
3. Does the company identify and assess potential environmental risks? Y/N. 4. What is your company’s direct contribution to community development projects - Amount in INR and the details of the projects
Not applicable. undertaken?
4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Please refer CSR Report.
Also, if Yes, whether any environmental compliance report is filed? 5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain
No. in 50 words, or so.
5. Has the company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please Yes, in these projects the community is motivated to contribute. The cost will be mobilized by way of membership fee from
give hyperlink for web page etc.: the beneficiary families. The villagers also provide installation space for the machine. They have formed committees with the
Yes, in considering long-run planning, reduction of risk, and conservation of resources in administrative planning, guidance of Implementing partners and the Panchayat. These committees not only take care of the project but also create a
sustainability has a significant contributory role. Chola aims to develop policies that support sustainable development in surplus by monthly fee collection, which they use to sustain the project.
all its products and services. Measures such as water conservation, energy saving and reducing emissions are effective at all
office branches. The company also has systems and processes in place to effectively manage e -waste. Principle 9 - Businesses should engage with and provide value to their customers and consumers in a responsible manner
In addition, Chola has adopted a holistic approach with an aim to develop sustainable buildings. The proposed office building 1. What percentage of customer complaints/consumer cases are pending as on the end of the financial year.
in Guindy is being developed under the guidance of a Green consultant and will be along the lines of a Green Building. Chola There were no customer complaints pending at the end of the financial year.
is paving its way to becoming one among the leading finance companies to get all their processes on a digital platform. Chola
also supports micro businesses in the Renewable energy sector, who make spare parts or are part of value chain of renewable 2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/
energy components ensuring responsible business. N.A./Remarks (additional information)
6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being Not Applicable.
reported?
3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/ or anti-
Not applicable. competitive behaviour during the last five years and pending as at the end of the financial year. If so, provide details thereof, in about
7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of FY. 50 words or so.
Nil. No.
Principle 7 - Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner 4. Did your company carry out any consumer survey/consumer satisfaction trends?
1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with: Yes, customer satisfaction surveys are carried out periodically and trends are measured. Customer satisfaction is one of the
• Confederation of Indian Industry key focus areas at Chola, and the company regularly takes their feedback to improve its systems and processes. Over the
• Finance Industry Development Council years, the customer satisfaction survey has yielded positive results. Every branch has a strategy manager or a zonal manager
• Finance Companies’ Association (India) who deals with customer care personally.
• South India Hire Purchase Association
In addition to this, the company also strives to incorporate feedbacks from its dealership partners to improves their processes
2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify and services.
the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security,
Water, Food Security, Sustainable Business Principles, Others
85 86
Independent Auditor’s Report Independent Auditor’s Report (Contd.)

To the Members of Cholamandalam Investment and Finance Company Limited Key audit matters How our audit addressed the key audit matter
Financial instruments, which include loans to customers, •
Read and assessed the Company’s policy with respect to
Report on the Audit of the Standalone Ind AS Financial Statements
represent a significant portion of the total assets of the Company. moratorium and one-time restructuring pursuant to the RBI
Opinion The Company has loans aggregating ` 68,28,375 lakhs as at March circular and tested the implementation of such policy on a
sample basis.
We have audited the accompanying Standalone Ind AS financial statements of Cholamandalam Investment and Finance Company Limited 31, 2021.
• Understood the Company’s key credit processes comprising
(“the Company”), which comprise the Balance sheet as at March 31 2021, the Statement of Profit and Loss, including the statement of Estimates regarding the impairment provision against loans granting, recording and monitoring of loans as well as
Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the are based on the expected credit loss model developed by the impairment provisioning.
Standalone Ind AS financial statements, including a summary of significant accounting policies and other explanatory information. Company based on the guiding principles prescribed under Ind • Read and assessed the Company’s impairment provisioning
In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone Ind AS financial AS 109. As stated, in the notes to the financial statements for the policy as per Ind AS 109;
statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a year ended March 31, 2021, the impairment provision is based • Obtained an understanding of the Company’s Expected Credit
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at on the expected credit loss model requires the management of Loss (‘ECL’) methodology, the underlying assumptions and
March 31, 2021, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date. the Company to make significant judgments in connection with performed sample tests to assess the staging of outstanding
related computation. These include: exposures;
Basis for Opinion
• Tested the ECL model, including assumptions and underlying
(a) Segmentation of the loan portfolio into homogenous pool of
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified computation.
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for borrowers;
• Assessed the Exposure at Default used in the impairment
the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the Company in accordance with (b) Identification of exposures where there is a significant increase calculations on a test basis;
the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to in credit risk and those that are credit impaired;
• Obtained an understanding of the basis and methodology
our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical adopted by management to determine 12 month and life-time
(c) Determination of the 12 month and life-time probability of
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is probability of defaults for various homogenous segments and
default for each of the segments identified; and
sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements. performed test checks;
(d) Loss given default for various exposures based on past trends
Emphasis of Matter • Obtained an understanding of the basis and methodology
/ experience, management estimates etc., adopted by management to determine Loss Given Defaults
We draw attention to Note 2.2 of the Standalone Ind AS financial statements, which describes the impact of COVID-19 pandemic, for various homogenous segments based on past recovery
Additionally, the economic and business consequences of the
and its possible consequential implications on the Company’s operations and financial metrics, including the Company’s estimates of experience, qualitative factors etc., and performed test checks;
COVID 19 pandemic as described in Note 2.2 to the Standalone
impairment of loans and that such estimates may be affected by the severity and duration of the pandemic. Our opinion is not modified • Assessed the items of loans, credit related contingent items as
Ind AS financial statements, slowdown of economic activity,
in respect of this matter. at the reporting date which are considered in the impairment
moratoriums granted to borrowers, the related regulatory
computation as at the reporting date;
Key Audit Matters directives and also the applicable accounting directions, further
affect provisioning under the ECL approach. •
Assessed and tested the inputs used in the impairment
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Ind computation (including the data integrity of information
AS financial statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the Note 3.5 to the Standalone Ind AS Financial Statements explains extracted from the Company’s IT systems);
Standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the various matters that the management has considered for •
Enquired with the management regarding significant
these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. developing this expected credit loss model. judgments and estimates involved in the impairment
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled computation and additional management overlay provision
arising from the effects of the COVID-19 pandemic, and
the responsibilities described in the Auditor’s responsibilities for the audit of the Standalone Ind AS financial statements section of our
evaluated the reasonableness thereof;
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the Standalone Ind AS financial statements. The results of our audit procedures, • Performed analytical reviews of disaggregated data to observe
any unusual trends warranting additional audit procedures;
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
and
Standalone Ind AS financial statements.
•
Read the financial statement disclosures in respect of
impairment losses on financial assets, including the specific
Key audit matters How our audit addressed the key audit matter disclosures made with regard to the impact of COVID-19 on
Impairment of Financial Assets based on Expected Credit Loss (‘ECL’) (as described in Note 3.5 of the Standalone Ind AS Financial the ECL estimation.
Statements)
Audit in an Information Technology (IT) enabled environment – including considerations on exceptions identified in IT
As at March 31, 2021, the Company has made a provision for • R ead and assessed the Company’s impairment provision policy environment
impairment loss aggregating ` 2,44,441 Lakhs against the loans and their compliance with Ind AS 109 and the governance The Company has information technology applications which In assessing the reliability of electronic data processing, we
outstanding. Due to the significance of the judgments used in framework approved by the Board of Directors pursuant to are used across various class of transactions in its operations involved our specialized IT auditors in our audit team. Our audit
both classification of loans into various stages as well as the Reserve Bank of India guidelines issued on 13 March 2020. procedures focused on the IT infrastructure and applications
including automated and IT dependent manual controls that are
computation of expected credit losses on such financial assets as relevant to financial reporting:
embedded in them.
per Ind AS 109, this has been considered as a key audit matter.
87 88
Independent Auditor’s Report (Contd.) Independent Auditor’s Report (Contd.)

Key audit matters How our audit addressed the key audit matter Other Information
Due to the pervasive nature and complexity of the Company’s IT • Assessing the information systems and the applications that is The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in
environment, we place significant emphasis on the information available in the Company in two phases: (i) IT General Controls the Annual report, but does not include the Standalone Ind AS financial statements and our auditor’s report thereon
systems, the controls, and process around such information and (ii) Application level embedded controls; Our opinion on the Standalone Ind AS financial statements does not cover the other information and we do not express any form of
systems and the usage of information from such systems for the • The aspects covered in the IT systems General Control audit assurance conclusion thereon.
purpose of financial reporting by the management for our audit. were (i) User Access Management (ii) Change Management In connection with our audit of the Standalone Ind AS financial statements, our responsibility is to read the other information and, in
Accordingly, this has been considered as a key audit matter. (iii) Other related ITGCs; - to understand the design and the doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in
operating effectiveness of such controls in the system; the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
•
Understanding of the changes that were made to the IT misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
landscape during the audit period and assessing changes that Responsibilities of Management for the Standalone Ind AS Financial Statements
have impact on financial reporting;
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of
• Performed tests of controls (including over compensatory these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including
controls wherever applicable) on the IT Application controls other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally
and IT dependent manual controls in the system. accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records
• Wherever applicable, we also assessed through direct sample
in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
tests, the information produced from these systems which
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
were relied upon for our audit.
and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone
Pending litigations with tax authorities (as described in Note 38(a) of the Standalone Ind AS Financial Statements) Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
The Company operates in a complex tax environment and is In assessing the exposure of the Company for the tax litigations, In preparing the Standalone Ind AS financial statements, management is responsible for assessing the Company’s ability to continue
required to discharge direct and indirect tax obligations under we have performed the following procedures: as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of
various legislations such as Income Tax Act, 1961, the Finance Act, • Obtained an understanding of the process laid down by the Directors are also responsible for overseeing the Company’s financial reporting process.
1994 Goods and Services Tax Acts and VAT Acts of various states, management for performing their assessment taking into
as may be applicable. consideration past legal precedents, changes in laws and Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
regulations, expert opinions obtained from external tax / legal Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS financial statements as a whole are free from
The tax authorities under these legislations have raised certain
experts (as applicable); material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
tax demands on the Company in respect of the past periods. The
• Assessed the processes and entity level controls established high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
Company has disputed such demands and has appealed against
by the Company to ensure completeness of information with when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
them at appropriate forums. As at March 31, 2021 the Company reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Ind AS financial statements.
respect to tax litigations;
has an amount of ` 66,928 Lakhs pertaining to various pending
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
tax litigations. •
Along with our tax experts, we undertook the following
audit. We also:
procedures:
Ind AS 37 requires the Company to perform an assessment of the • Identify and assess the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error,
probability of economic outflow on account of such disputed tax •
Reading communications with relevant tax authorities design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
including notices, demands, orders, etc., relevant to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
matters and determine whether any particular obligation needs
the pending litigations, as made available to us by the from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
to be recorded as a provision in the books of account or to be
management;
disclosed as a contingent liability. Considering the significant • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
degree of judgement applied by the management in making such •
Testing the accuracy of disputed amounts from the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
assessments and the resultant impact on the financial statements, underlying communications received from tax authorities adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
and responses filed by the Company; • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
we have considered it to be a key audit matter.
• Considered the submissions made to appellate authorities made by management.
and expert opinions obtained by the Company from • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
external tax / legal experts (wherever applicable) which obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
form the basis for management’s assessment; ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
•
Assessed the positions taken by the management in auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
the light of the aforesaid information and based on the conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
examination of the matters by our tax experts.
• Evaluate the overall presentation, structure and content of the Standalone Ind AS financial statements, including the disclosures, and
Read the disclosures included in the Standalone Ind AS Financial
whether the Standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair
Statements in this regard.
presentation.
89 90
Independent Auditor’s Report (Contd.) Annexure 1 referred to in our report of even date
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and Re: Cholamandalam Investment and Finance Company Limited (“the Company”)
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding of property, plant and equipment.
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. (b) Property, plant and equipment have been physically verified by the management during the year and no material
discrepancies were identified on such verification.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the Standalone Ind AS financial statements for the financial year ended March 31, 2021 and are therefore the key audit (c) According to the information and explanations given by the management, the title deeds of immovable properties
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or included in property, plant and equipment are held in the name of the company. Immovable properties of land
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse and buildings whose title deeds have been pledged in favour of Trustees for the benefit of debenture holders as
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. security for the Redeemable Non-convertible Debentures, are held in the name of the Company based on the
Report on Other Legal and Regulatory Requirements Trust Deed executed between the Trustees and the Company.
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of (ii) The Company’s business does not involve inventories and, accordingly, the requirements under paragraph 3(ii) of the
sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of Order are not applicable to the Company.
the Order.
(iii) (a) The Company has granted loans to one subsidiary Company and one associate covered in the register maintained
2. As required by Section 143(3) of the Act, we report that: under Section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary given to us, the terms and conditions of the grant of such loans are not prejudicial to the Company's interest.
for the purposes of our audit;
(b) The schedule of repayment of principal and payment of interest has been stipulated for the loans granted and the
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our repayment/receipts are regular.
examination of those books;
(c) According to the information and explanations given by the management there are no amounts of loans which
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow are overdue for more than ninety days from a Company covered in the register maintained under Section 189 of
Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
the Companies Act, 2013.
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments,
guarantees, and securities granted in respect of which provisions of Sections 185 of the Act have not been complied
(e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of
by the Company and in our opinion, provisions of Section 186 of the Act are not applicable to the Company.
Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164
(2) of the Act; (v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Companies Act 2013 and
(f ) With respect to the adequacy of the internal financial controls with reference to Standalone Ind AS financial statements and the the Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year. Accordingly, the provisions of
operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; clause 3(v) of the Order are not applicable.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Company to its (vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost
directors in accordance with the provisions of section 197 read with Schedule V to the Act; records under Section 148(1) of the Companies Act, 2013, for the services of the Company.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and (vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident
Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given fund, employees’ state insurance, income-tax, sales tax, service tax, value added tax, goods and services tax, duty
to us: of custom, cess and other material statutory dues applicable to it. The provisions relating to wealth tax, and duty
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS financial of excise are not applicable to the Company.
statements – Refer Note 38(a) to the Standalone Ind AS financial statements;
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable provident fund, employees’ state insurance, income-tax, sales tax, service tax, value added tax, goods and services
losses, if any, on long-term contracts including derivative contracts – Refer Note 7 and 9 to the Standalone Ind AS financial tax, duty of custom, cess and other material statutory dues were outstanding, at the year end, for a period of more
statements;
than six months from the date they became payable.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company
(c) According to the records of the Company, the dues outstanding of Income tax, Sales Tax, Value Added Tax and
Service Tax which have not been deposited on account of any dispute are as follows:
` in lakhs
For S.R. BATLIBOI & ASSOCIATES LLP Name of the statute Nature of dues Amount* Period to which Forum where the
Chartered Accountants the amounts relate dispute is pending
ICAI Firm Registration Number: 101049W/E300004 Income Tax Act, 1961 Tax and interest 21,898 1990-91, 1991-92, 2009-10 Income Tax Appellate Tribunal
& 2010-11
per Aravind K 1,505 2010-11,2011-12, 2012-13 ITAT
Partner & 2016-17
Membership Number: 221268
6,746 2013-14 to 2015-16 & 2017-18 CIT(Appeal)
UDIN: 21221268AAAACQ3684
Place of Signature: Chennai Bihar Finance Act, 1981 Sales Tax 2 1992-93 & 1993-94 Sales Tax Appellate Tribunal
Date: May 7, 2021 Gujarat Sales Tax Act, 1969 Sales Tax 2 1997-98 Sales Tax Appellate Tribunal
91 92
Annexure 1 referred to in our report of even date (Contd.) Annexure 2 to the Independent Auditor’s Report of even
` in lakhs date on the Standalone Ind AS Financial Statements of
Cholamandalam Investment and Finance Company Limted
Name of the statute Nature of dues Amount not Period to which Forum where the
deposited the amounts relate dispute is pending
Rajasthan Sales Tax Act Sales Tax 14 2012-13, 2016-17 , 2017-18 Tribunal/ Assessing Officer
Karnataka Sales Tax Act Sales Tax 357 2007-08 to 2013-14 Karnataka High court
Delhi Sales Tax Act, 1975 Sales Tax 8 1991-92 Deputy Commissioner of Sales Tax
Odisha Value Added Sales Tax 303 2007-08 to 2013-2014 Sales Tax Appellate Tribunal/
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
Tax Act, 2004 Joint Commissioner
(“the Act”)
Tamil Nadu Value Added Sales Tax 1,029 2007-08 to 2013-14 Supreme Court
Tax Act, 2006 We have audited the internal financial controls with reference to Standalone Ind AS financial statements of Cholamandalam
Tamil Nadu General Sales TNGST & CST 999 1995-96 High Court of Madras
Investment and Finance Company Limited (“the Company”) as of March 31, 2021 in conjunction with our audit of the
Tax Act, 1959
Standalone Ind AS financial statements of the Company for the year ended on that date.
Finance Act, 1994 Service Tax 19,690 2005-06 to 2017-18 CESTAT Management’s Responsibility for Internal Financial Controls
*net of tax paid under protest/ refund adjusted The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal
(viii) In our opinion and according to the information and explanations given by the management, the Company has not control over financial reporting criteria established by the Company considering the essential components of internal
defaulted in repayment of loans or borrowing to a financial institution, bank or government or dues to debenture control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
holders. of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of
(ix) According to the information and explanations given by the Management, the Company has not raised any money adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
by way of initial public offer or further public offer. Further, monies raised by the Company by way of term loans
were applied for the purpose for which those were raised, though idle/surplus funds which were not required for business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of
immediate utilisation were gainfully invested in liquid assets payable on demand. frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial information, as required under the Companies Act, 2013.
statements and according to the information and explanations given by the management, we report that no fraud by
the Company or no material fraud on the Company by the officers and employees of the Company has been noticed Auditor’s Responsibility
or reported during the year.
Our responsibility is to express an opinion on the Company's internal financial controls with reference to these Standalone
(xi) According to the information and explanations given by the management, the managerial remuneration has been
paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
Schedule V to the Companies Act 2013. of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, as specified
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those
applicable to the Company and hence not commented upon. Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
(xiii) According to the information and explanations given by the management, transactions with the related parties are in obtain reasonable assurance about whether adequate internal financial controls with reference to these Standalone Ind AS
compliance with Sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed financial statements was established and maintained and if such controls operated effectively in all material respects.
in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
the company has not made any preferential allotment or private placement of shares or fully or partly convertible with reference to these Standalone Ind AS financial statements and their operating effectiveness. Our audit of internal
debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable financial controls with reference to Standalone Ind AS financial statements included obtaining an understanding of internal
to the company and, not commented upon.
financial controls with reference to these Standalone Ind AS financial statements, assessing the risk that a material weakness
(xv) According to the information and explanations given by the management, the Company has not entered into any
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The
non-cash transactions with directors or persons connected with him as referred to in Section 192 of Companies Act,
2013. procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of
(xvi) According to the information and explanations given to us, we report that the Company has registered as required, the financial statements, whether due to fraud or error.
under Section 45-IA of the Reserve Bank of India Act, 1934.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Company’s internal financial controls with reference to these Standalone Ind AS financial statements.
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants Meaning of Internal Financial Controls With Reference to these Standalone Ind AS Financial Statements
ICAI Firm Registration Number: 101049W / E300004
A company's internal financial controls with reference to Standalone Ind AS financial statements is a process designed to
per Aravind K provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
Partner
for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls
Place of signature: Chennai with reference to Standalone Ind AS financial statements includes those policies and procedures that (1) pertain to the
Date: May 7, 2021 maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
93 94
Annexure 2 to the Independent Auditor’s Report of even Standalone Ind AS Balance Sheet As at March 31, 2021
date on the Standalone Ind AS Financial Statements of Note No. As at
` in lakhs
As at
Cholamandalam Investment and Finance Company Limted

ASSETS
March 31,2021 March 31,2020
(Contd.) Financial Assets

Cash and Cash Equivalents 5 1,55,370 3,46,188
Bank balances other than Cash and Cash Equivalents 6 3,67,818 3,49,722
Derivative financial instruments 7 4,587 11,420
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Receivables 8
i) Trade Receivables 2,031 2,176
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of ii) Other Receivables 4,612 3,698
the company are being made only in accordance with authorisations of management and directors of the company; and (3) Loans 9 65,83,934 55,40,273
provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of Investments 10 1,61,882 7,292
Other Financial Assets 11 56,278 41,327
the company's assets that could have a material effect on the financial statements. 73,36,512 63,02,096
Non- Financial Assets
Inherent Limitations of Internal Financial Controls With Reference to Standalone Ind AS Financial Statements Current tax assets 14,615 15,208
Deferred tax assets (Net) 12 76,380 52,083
Because of the inherent limitations of internal financial controls with reference to Standalone Ind AS financial statements, Investment property 13 13 14
including the possibility of collusion or improper management override of controls, material misstatements due to error or Property, Plant and Equipment 14 20,302 25,599
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference Intangible assets under development 982 1,026
Other Intangible assets 15 1,645 1,747
to Standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control with Other Non-Financial Assets 16 4,393 2,466
reference to Standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the 1,18,330 98,143
degree of compliance with the policies or procedures may deteriorate. TOTAL ASSETS 74,54,842 64,00,239
LIABILITIES AND EQUITY
Opinion Financial Liabilities
Derivative financial instruments 7 12,742 -
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to Standalone Payables
(I) Trade payables
Ind AS financial statements and such internal financial controls with reference to Standalone Ind AS financial statements i) Total outstanding dues of micro and small enterprises 33 - 70
were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established ii) Total outstanding dues of creditors other than micro and small enterprises 23,601 20,220
by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal (II) Other payables
i) Total outstanding dues of micro and small enterprises - -
Financial Controls Over Financial Reporting issued by the ICAI. ii) Total outstanding dues of creditors other than micro and small enterprises 20,492 9,949
Debt securities 17 12,35,767 7,32,683
Borrowings(Other than Debt Securities) 18 47,18,226 43,27,308
Subordinated Liabilities 19 4,19,006 4,40,552
For S.R. BATLIBOI & ASSOCIATES LLP Other Financial Liabilities 20 49,217 38,621
64,79,051 55,69,403
Chartered Accountants Non-Financial Liabilities
ICAI Firm Registration Number: 01049W/E300004 Current tax Liabilities 4,225 -
Provisions 21 10,958 9,076
per Aravind K Other Non-Financial Liabilities 22 4,577 4,576
Partner 19,760 13,652
Membership Number: 221268 Equity
Place of Signature: Chennai Equity share capital 23A 16,407 16,398
Date: May 7, 2021 Other Equity 23B 9,39,624 8,00,786
9,56,031 8,17,184
TOTAL LIABILITIES AND EQUITY 74,54,842 64,00,239
The accompanying notes are integral part of the Standalone Ind AS financial statements
As per our report of even date

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Regn No. 101049W/E300004

per Aravind K Ravindra Kumar Kundu Vellayan Subbiah
Partner Executive Director Chairman
Membership No: 221268
Date : May 7, 2021 P. Sujatha D. Arul Selvan

Place : Chennai Company Secretary Chief Financial Officer
95 96

Expenses

Deferred tax
per Aravind K
- Fee Income
- Finance costs
- Sale of Services
- Interest Income
Other Income (II)
- Other expenses
Corporate Overview
Tax expense/(benefit)

Revenue from Operations
Cashflow Hedge Reserve

- Employee benefits expense
Other Comprehensive income:
For S.R. Batliboi & Associates LLP
ICAI Firm Regn No.101049W/E300004

Earnings per equity share of ₹ 2 each
- Impairment of financial Instruments
- Depreciation and amortisation expense

- Net gain on fair value change on financial instruments
Place : Chennai
Date : May 7, 2021
Re-measurement gains / (losses) on defined benefit plans (net)

Partner
Management Reports
- Net gain on derecognition of financial instruments under amortised cost category
ii)Other comprehensive income to be reclassified to profit or loss in subsequent periods:

i) Other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Total comprehensive income net of tax for the period (A + B)

Other comprehensive income/(loss) net of tax for the period (B)
Profit for the period - A = (V) - (VI)
Net tax expense (VI)
Profit before tax (V) = (III) - (IV)
Total Expenses (IV)
Total Income (III) = (I) + (II)
Total Revenue from operations (I)
- Diluted (₹)
- Basic ( ₹)
Income tax impact
Income tax impact
- Adjustment of tax relating to earlier periods
Current tax

30
25
35
12
29
28
27
26
24B
24C
24A
24D
42.8
Note No.
13, 14 & 15
Company Secretary
P. Sujatha
Executive Director
Ravindra Kumar Kundu
(4,521)
(127)
(23,127)
394
1,48,013
(3,478)
1,51,491
7,48,118
9,51,962
9,51,601
Year ended
18.45
18.48
1,138
32
75,086
73,578
9,830
74,936
1,32,183
4,57,591
361
8,037
20,685
-
9,22,416
52,353
2,03,844
463
Standalone Ind AS Statement of Profit and Loss for the year ended March 31, 2021
March 31,2021 March 31,2020

Year ended
13.35
13.37
98,892
(6,345)
3,261
(9,232)
125
(499)
1,05,237
53,336
(3,396)
-
56,732
1,58,573
7,06,716
81,506
10,754
65,500
89,733
4,59,223
8,65,289
26
8,65,263
7,570
1,563
18,987
24,727
8,12,416
` in lakhs
Chairman
Vellayan Subbiah
Chief Financial Officer

D. Arul Selvan
For and on behalf of the Board of Directors
Financial Statements
97
98
Standalone Ind AS Statement of Changes in Equity for the year ended March 31, 2021 ` in lakhs
a) Equity Share Capital

Balances as on April 01, 2019 15,643
Add: Issue of share capital 755
Balances as on March 31, 2020 16,398
Add: Issue of share capital 9
Balances as on March 31, 2021 16,407
b) Other Equity (Refer Note 23B)
` in lakhs
Reserve and Surplus Items of other
comprehensive income
Particulars Share Statutory Capital Capital Securities General Retained Share based Equity Effective Total
Cholamandalam Investment and Finance Company Limited
application Reserve Reserve Redemption Premium Reserve earnings Payments instruments portion of
money Reserve Account reserve through other cashflow
pending comprehensive hedge
allotment income
Balance as at March 31, 2020 10 1,28,046 4 3,300 2,85,678 2,98,777 89,281 3,017 (129) (7,198) 8,00,786
Profit for the year - - - - - - 1,51,491 - - - 1,51,491
Remeasurement of defined - - - - - - (95) - - - (95)
benefit plans
Total comprehensive income for
the period, net of income tax - - - - - - - - - (3,383) (3,383)
Dividend including Tax - - - - - - (10,656) - - - (10,656)
Changes during the year (10) - - - 927 136 - 428 - - 1,481
Transfer to reserves from retained - 31,000 - - - 75,000 (1,06,000) - - - -
earnings during the year
Balance as at March 31, 2021 - 1,59,046 4 3,300 2,86,605 3,73,913 1,24,021 3,445 (129) (10,581) 9,39,624
Balance as at March 31, 2019 - 1,06,046 4 3,300 1,66,849 2,48,777 76,450 1,861 (129) (1,227) 6,01,931
Profit for the year - - - - - - 1,05,237 - - - 1,05,237
Remeasurement of defined - - - - - - (374) - - - (374)
benefit plans
Total comprehensive income - - - - - - - - - (5,971) (5,971)
for the Period, net of income tax
Dividend including Tax - - - - - - (20,032) - - (20,032)
Changes during the year 10 22,000 - - 1,19,750 50,000 - 1,156 - - 1,92,916
Utilisation of securities premium - - - - (921) - - - - - (921)
Transfer to reserves from - - - - - - (72,000) - - - (72,000)
retained earnings during the year
Balance as at March 31, 2020 10 1,28,046 4 3,300 2,85,678 2,98,777 89,281 3,017 (129) (7,198) 8,00,786
Annual Report 2020 - 2021

Standalone Ind AS Cash Flow Statement for the year ended March 31, 2021 Standalone Ind AS Cash Flow Statement for the year ended March 31, 2021 (Contd.)
` in lakhs ` in lakhs
Particulars Year ended Year ended Particulars Year ended Year ended
March 31, 2021 March 31,2020 March 31, 2021 March 31, 2020
Cash Flow from Operating Activities Proceeds from issue of subordinated liabilities 14,500 45,000
Profit Before Tax 2,03,844 1,58,573 Repayment of subordinated liabilities (34,650) (29,500)
Adjustments to reconcile profit before tax to net cash flows: 8,85,407 4,44,719
Depreciation and amortisation expense 9,830 10,754 Investment in Bank Fixed Deposits (net of withdrawals) (18,800) (2,93,415)
Impairment of financial instruments 1,32,183 89,733 Dividends Paid (Including Distribution Tax) (10,655) (20,027)
Finance Costs 4,57,591 4,59,223 Net Cash From Financing Activities (C) 8,51,344 2,46,061
Loss on Sale of Property plant and equipment (Net) 54 13 Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) (1,90,818) 32,295
Net gain on fair value change in financial instrument (463) (1,563) Cash and Cash Equivalents at the Beginning of the Year 3,46,188 3,13,893
Interest Income on bank deposits and other investments (34,694) (24,285) Cash and Cash Equivalents at the End of the Year 1,55,370 3,46,188
Interest on Income Tax Refund (336) -
Share based payment expense 561 1,153 The accompanying notes are integral part of the Standalone Ind AS financial statements
5,64,726 5,35,028
Operating Profit Before Working Capital Changes 7,68,570 6,93,601
Adjustments for :-
(Increase)/Decrease in operating Assets
Loans (11,75,844) (8,03,568) Chartered Accountants
Trade receivables (769) (1,525) ICAI Firm Regn No.101049W/E300004
Other Financial Assets (14,951) (27,816)
Other Non Financial Assets (1,927) (11,93,491) (161) (8,33,070) Partner Executive Director Chairman
Proceeds from de-recognition of financial assets recognised at amortised cost - 4,35,789 Membership No: 221268
Increase/(Decrease) in operating liabilities & provisions
Payables 13,728 (3,895) Place : Chennai Company Secretary Chief Financial Officer
Other Financial liabilities 13,727 5,367
Provisions 1,882 1,674
Other Non Financial liabilities 1 29,338 (820) 2,326
Cash Flow used in Operations (3,95,583) 2,98,646
Finance Costs paid (4,54,564) (4,71,542)
Interest Received on Bank Deposits and other investments 35,399 21,575
(4,19,165) (4,49,967)
(8,14,748) (1,51,321)
Income tax paid (Net of refunds) (70,326) (57,301)
Net Cash Used in Operating Activities (A) (8,85,074) (2,08,622)
Cash Flow from Investing Activities
Purchase of Property, plant and Equipment and Intangible Assets (3,111) (6,815)
Proceeds from Sale of Property, plant and equipment. 150 108
Movement of Investment (net) (1,54,127) 1,563
Net Cash Used in Investing Activities (B) (1,57,088) (5,144)
Cash Flow from Financing Activities
Proceeds from issue of Share Capital (Including Securities Premium) 936 1,19,584
Payment of Lease liabilities (5,544) (4,800)
Proceeds from issue of Debt securities 18,76,079 19,40,525
Redemption of Debt securities (13,75,181) (26,09,365)
Proceeds from Borrowing other than debt securities 48,56,670 45,16,459
Repayment of Borrowings other than debt securities (44,52,011) (34,18,400)
99 100
Notes forming part of the Standalone Ind AS Financial Statements Notes forming part of the Standalone Ind AS Financial Statements (Contd.)
For the year ended March 31, 2021 For the year ended March 31, 2021
1. Corporate information dated March 27, 2020 and subsequent guidelines on 3. Significant accounting policies The Company's business model is not assessed on an
EMI moratorium dated April 17, 2020 and May 23, 2020 instrument-by-instrument basis, but at a higher level of

Cholamandalam Investment and Finance Company Limited 3.1 Financial instruments – initial recognition
the Company has offered moratorium to its customers aggregated portfolios and is based on observable factors
(“the Company”) (CIN L65993TN1978PLC007576) is a public 3.1.1 Date of recognition
based the eligibility for EMIs falling due between such as:
limited Company domiciled in India. The Company is listed
March 1, 2020 to August 31, 2020. Further, the Company Financial assets and liabilities, with the exception of loans, • How the performance of the business model and
on Bombay Stock Exchange and National Stock Exchange. debt securities, and borrowings are initially recognised on
offered resolution plans to its customers pursuant to RBI’s the financial assets held within that business model
The Company is one of the premier diversified non-banking the trade date, i.e., the date that the Company becomes
guideline ‘Resolution framework for Covid-19 related are evaluated and reported to the entity's key
finance companies in India, engaged in providing vehicle a party to the contractual provisions of the instrument. management personnel
finance, home loans and Loan against property. stress’ dated August 6, 2020. Loans are recognised when fund transfers are initiated to
• The risks that affect the performance of the business
The impact of COVID-19 pandemic including the ongoing the customers’ account or cheques for disbursement have
The standalone financial statements are presented in INR model (and the financial assets held within that
“second wave”, on Company’s operations and financial been prepared by the Company (as per the terms of the
which is also functional currency of the Company. business model) and, in particular, the way those risks
agreement with the borrowers). The Company recognises
metrics, will depend on the future developments, are managed
2.1 Basis of preparation debt securities and borrowings when funds reach the
which are highly uncertain. Management continues to
Company. • How managers of the business are compensated (for
The standalone financial statements of the Company have monitor the evolving situation on an ongoing basis and
3.1.2 Initial measurement of financial instruments example, whether the compensation is based on the
been prepared in accordance with Indian Accounting management has considered events up to the date of fair value of the assets managed or on the contractual
Standards (Ind AS) notified under the Companies (Indian these financial statements, to determine the financial The classification of financial instruments at initial
cash flows collected)
Accounting Standards) Rules, 2015 (as amended from time recognition depends on their contractual terms and the
implications including in respect of Expected Credit Loss
to time). business model for managing the instruments. Financial • The expected frequency, value and timing of sales are
(ECL) provisioning, as at March 31, 2021, and has made also important aspects of the Company’s assessment
instruments are initially measured at their fair value, except
The standalone financial statements have been prepared cumulative expected credit loss provision for loans as
in the case of financial assets and financial liabilities recorded The business model assessment is based on reasonably
on a historical cost basis, except for fair value through other on March 31, 2021 which aggregates to ` 2,44,441 lakhs at FVTPL (Fair value through profit and loss), transaction expected scenarios without taking 'worst case' or 'stress
comprehensive income (FVOCI) instruments, fair value (`1,52,297 lakhs for March 31, 2020). The Company holds costs are added to, or subtracted from, this amount. case’ scenarios into account. If cash flows after initial
through Profit and Loss (FVTPL) instruments, derivative a management overlay of ` 1,10,024 lakhs as at March31, recognition are realised in a way that is different from
3.1.3
Measurement categories of financial assets and
financial instruments and certain financial assets and 2021 (` 53,445 lakhs - March 31, 2020) as part of its ECL the Company's original expectations, the Company does
liabilities
financial liabilities measured at fair value (refer accounting provision. Given the dynamic and evolving nature of not change the classification of the remaining financial
The Company classifies all of its financial assets based
policy regarding financial instruments). pandemic, these estimates are subject to uncertainty assets held in that business model, but incorporates such
on the business model for managing the assets and the
The standalone financial statements are presented in caused by the ongoing Covid-19 pandemic and related information when assessing newly originated or newly
asset’s contractual terms, measured at either:
purchased financial assets going forward.
Indian Rupees (INR) and all values are rounded to the events. • Amortised cost
nearest lakhs, except when otherwise indicated. • FVTPL 3.2.1.2 The SPPI test
2.3 Presentation of financial statements
• FVOCI As a second step of its classification process the Company
The regulatory disclosures as required by Master Directions
The Company presents its balance sheet in order of 3.2 Financial assets and liabilities
for Non-Banking Financial Company - Systemically assesses the contractual terms of financial to identify
liquidity. An analysis regarding recovery or settlement 3.2.1
Bank balances, Loans, Trade receivables and financial whether they meet the SPPI test.
Important Non-Deposit taking Company Directions, 2016
within 12 months after the reporting date (current) and investments at amortised cost
issued by the RBI (‘RBI Master Directions’) to be included as ‘Principal’ for the purpose of this test is defined as the fair
more than 12 months after the reporting date (non– The Company Measures Bank balances, Loans, and other
a part of the Notes to Accounts are prepared as per the Ind value of the financial asset at initial recognition and may
current) is presented in notes to the financial statements. financial investments at amortised cost if both of the
AS financial statements, pursuant to the RBI notification change over the life of the financial asset (for example, if
following conditions are met:
Financial assets and financial liabilities are generally there are repayments of principal or amortisation of the
on Implementation of Indian Accounting Standards, dated • The financial asset is held within a business model with
reported gross in the balance sheet. They are only premium/discount).
March 13, 2020. the objective to hold financial assets in order to collect
offset and reported net when, in addition to having an contractual cash flows and The most significant elements of interest within a lending
2.2 Impact of Covid-19
unconditional legally enforceable right to offset the • The contractual terms of the financial asset give rise on arrangement are typically the consideration for the time
The Covid-19 pandemic has affected several countries recognised amounts without being contingent on a future specified dates to cash flows that are solely payments value of money and credit risk. To make the SPPI assessment,
across the world, including India, Consequent lockdowns event, the parties also intend to settle on a net basis in all of principal and interest (SPPI) on the principal amount the Company applies judgement and considers relevant
and varying restrictions imposed by the government outstanding factors such as the currency in which the financial asset is
the following circumstances:
across several jurisdictions in which the Company operates The details of these conditions are outlined below. denominated, and the period for which the interest rate is
• The normal course of business set.
has considerably impacted company’s business operations 3.2.1.1 Business model assessment
during the year ended March 31, 2021. • The event of default The Company determines its business model at the level 3.2.2 Equity instruments at FVOCI
In accordance with the Reserve bank of India • The event of insolvency or bankruptcy of the Company that best reflects how it manages Company’s of financial The Company subsequently measures all equity
(RBI) guidelines related to “Covid-19 regulatory package” and/or its counterparties assets to achieve its business objective. investments at fair value through profit or loss, unless the
101 102
Notes forming part of the Standalone Ind AS Financial Statements (Contd.) Notes forming part of the Standalone Ind AS Financial Statements (Contd.)
Company ’s management has elected to classify irrevocably gain or loss, to the extent that an impairment loss has not advances with the right to full recovery of the amount an existing financial liability is replaced by another from the
some of its equity investments as equity instruments at already been recorded. The newly recognised loans are lent plus accrued interest at market rates same lender on substantially different terms, or the terms of an
FVOCI, when such instruments meet the definition of Equity classified as Stage 1 for ECL measurement purposes, unless existing liability are substantially modified, such an exchange
• The Company cannot sell or pledge the original asset
under Ind AS 32 Financial Instruments: Presentation and are the new loan is deemed to be POCI. or modification is treated as a derecognition of the original
other than as security to the eventual recipients
not held for trading. Such classification is determined on an When assessing whether or not to derecognise a loan to liability and the recognition of a new liability. The difference
instrument-by-instrument basis. • The Company has to remit any cash flows it collects between the carrying value of the original financial liability
a customer, amongst others, the Company considers the
on behalf of the eventual recipients without material and the consideration paid is recognised in profit or loss.
Gains and losses on these equity instruments are never following factors:
delay. In addition, the Company is not entitled to
recycled to profit or loss. Dividends are recognised in profit • Change in currency of the loan reinvest such cash flows, except for investments in 3.5 Impairment of financial assets
or loss as dividend income when the right of the payment cash or cash equivalents including interest earned, 3.5.1 Overview of the ECL principles
• Introduction of an equity feature
has been established, except when the Company benefits during the period between the collection date and the
from such proceeds as a recovery of part of the cost of • Change in counterparty The Company records allowance for expected credit
date of required remittance to the eventual recipients. losses for all loans, other debt financial assets not held at
the instrument, in which case, such gains are recorded in If the modification is such that the instrument would no
OCI (Other Comprehensive Income). Equity instruments at A transfer only qualifies for derecognition if either: FVTPL, together with loan commitments, in this section all
longer meet the SPPI criterion.
FVOCI are not subject to an impairment assessment. • The Company has transferred substantially all the risks referred to as ‘financial instruments’. Equity instruments are
If the modification does not result in cash flows that are not subject to impairment under Ind AS 109.
3.2.3 Debt securities and other borrowed funds and rewards of the asset
substantially different, the modification does not result
Or The ECL allowance is based on the credit losses expected
After initial measurement, debt issued and other borrowed in derecognition. Based on the change in cash flows
to arise over the life of the asset (the lifetime expected
funds are subsequently measured at amortised cost. discounted at the original EIR, the Company records a •
The Company has neither transferred nor retained credit loss or LTECL), unless there has been no significant
Amortised cost is calculated by taking into account any modification gain or loss, to the extent that an impairment substantially all the risks and rewards of the asset, but increase in credit risk since origination, in which case, the
discount or premium on issue funds, and costs that are an loss has not already been recorded. has transferred control of the asset allowance is based on the 12 months’ expected credit loss
integral part of the EIR. 3.4.2 Derecognition of financial assets other than due to The Company considers control to be transferred if and (12mECL) as outlined in Notes.
3.2.4 Undrawn loan commitments substantial modification of terms and conditions only if, the transferee has the practical ability to sell the The 12mECL is the portion of LTECLs that represent
Undrawn loan commitments are commitments under 3.4.2.1 Financial assets asset in its entirety to an unrelated third party and is able the ECLs that result from default events on a financial
which, over the duration of the commitment, the Company to exercise that ability unilaterally and without imposing instrument that are possible within the 12 months after
A financial asset (or, where applicable, a part of a financial
is required to provide a loan with pre-specified terms to the additional restrictions on the transfer. When the Company the reporting date.
asset or part of a group of similar financial assets) is
customer. Undrawn loan commitments are in the scope of has neither transferred nor retained substantially all the
derecognised when the rights to receive cash flows Both LTECLs and 12mECLs are calculated on either an
the ECL requirements. risks and rewards and has retained control of the asset,
from the financial asset have expired. The Company also individual basis or a collective basis, depending on the
the asset continues to be recognised only to the extent
The nominal contractual value of undrawn loan derecognises the financial asset if it has both transferred the nature of the underlying portfolio of financial instruments.
of the Company’s continuing involvement, in which case,
commitments, where the loan agreed to be provided is on financial asset and the transfer qualifies for derecognition.
the Company also recognises an associated liability. The The Company has established a policy to perform an
market terms, are not recorded in the balance sheet. The The Company has transferred the financial asset if, and transferred asset and the associated liability are measured assessment, at the end of each reporting period, of
nominal values of these commitments together with the only if, either: on a basis that reflects the rights and obligations that the whether a financial instrument’s credit risk has increased
corresponding ECLs are disclosed in notes. Company has retained. significantly since initial recognition, by considering the
• The Company has transferred its contractual rights to
3.3 Reclassification of financial assets and liabilities receive cash flows from the financial asset Continuing involvement that takes the form of a guarantee change in the risk of default occurring over the remaining
The Company does not reclassify its financial assets over the transferred asset is measured at the lower of the life of the financial instrument.
Or
subsequent to their initial recognition, apart from the original carrying amount of the asset and the maximum ased on the above process, the Company categorises its
B
• It retains the rights to the cash flows, but has assumed
exceptional circumstances in which the Company amount of consideration the Company could be required loans into Stage 1, Stage 2 and Stage 3, as described below:
an obligation to pay the received cash flows in full
acquires, disposes of, or terminates a business line. to pay. Stage 1: When loans are first recognised, the Company

without material delay to a third party under a ‘pass–
Financial liabilities are never reclassified. The Company did In case where transfer of a part of financial assets recognises an allowance based on 12mECLs. Stage 1 loans
through’ arrangement.
not reclassify any of its financial assets or liabilities in 2019- qualifies for de-recognition, any difference between the also include facilities where the credit risk has improved
20 and 2020-21. Pass-through arrangements are transactions whereby the
proceeds received on such sale and the carrying value of and the loan has been reclassified from Stage 2.
Company retains the contractual rights to receive the cash
3.4 Derecognition of financial assets and liabilities flows of a financial asset (the 'original asset'), but assumes
the transferred asset is recognised as gain or loss on de- Stage 2: When a loan has shown a significant increase

3.4.1 Derecognition of financial assets due to substantial recognition of such financial asset previously carried under in credit risk since origination, the Company records
a contractual obligation to pay those cash flows to one or
modification of terms and conditions amortisation cost category. The resulting interest only strip an allowance for the LTECLs. Stage 2 loans also include
more entities, when all of the following three conditions
initially is recognised at FVTPL. facilities, where the credit risk has improved and the loan
T he Company derecognises a financial asset, such as a loan are met:
to a customer, when the terms and conditions have been 3.4.2.2 Financial liabilities has been reclassified from Stage 3.
• The Company has no obligation to pay amounts to the
renegotiated to the extent that, substantially, it becomes a eventual recipients unless it has collected equivalent A financial liability is derecognised when the obligation Stage 3: Loans considered credit-impaired. The Company

new loan, with the difference recognised as a derecognition amounts from the original asset, excluding short-term under the liability is discharged, cancelled or expires. Where records an allowance for the LTECLs.
103 104
3.5.2 The calculation of ECLs these loans. The method is similar to that for Stage 2 assets, off. Any subsequent recoveries are credited to impairment 3.9.1 Cash flow hedges
with the PD set at 100%. on financial instrument on statement of profit and loss. cash flow hedge is a hedge of the exposure to variability in
A
The Company calculates ECLs to measure the expected
cash shortfalls, discounted at an approximation to the EIR. Loan commitment: When estimating LTECLs for undrawn 3.8 Restructured, rescheduled and modified loans cash flows that is attributable to a particular risk associated
A cash shortfall is the difference between the cash flows loan commitments, the Company estimates the expected The Company sometimes makes concessions or with a recognised asset or liability (such as all or some
that are due to an entity in accordance with the contract portion of the loan commitment that will be drawn down modifications to the original terms of loans such as future interest payments on variable rate debt) or a highly
and the cash flows that the entity expects to receive. over its expected life. The ECL is then based on the present changing the instalment value or changing the tenor probable forecast transaction and could affect profit or loss.
value of the expected shortfalls in cash flows if the loan is of the loan, as a response to the borrower’s request. The For designated and qualifying cash flow hedges, the
The key elements of the ECL are summarised below:
drawn down. The expected cash shortfalls are discounted Company considers the modification of the loan only effective portion of the cumulative gain or loss on the
D: The Probability of Default is an estimate of the likelihood
P at an approximation to the expected EIR on the loan. For before the loans gets credit impaired. hedging instrument is initially recognised directly in OCI
of default over a given time horizon. A default may only an undrawn loan commitment, ECLs are calculated and
When the loan has been renegotiated or modified but not within equity (cash flow hedge reserve).
happen at a certain time over the assessed period, if the presented under provisions.
facility has not been previously derecognised and is still in derecognised, the Company also reassesses whether there The ineffective portion of the gain or loss on the hedging
the portfolio. 3.5.3 Forward looking information has been a significant increase in credit risk. The Company instrument is recognised immediately in net gain/loss on
The Company considers a broad range of forward looking also considers whether the assets should be classified as fair value changes in the profit and loss statement.
EAD: The Exposure at Default is an estimate of the exposure
information with reference to external forecasts of Stage 3. Once an asset has been classified as restructured,
at a future default date (in case of Stage 1 and Stage 2),
When the hedged cash flow affects the statement of profit
economic parameters such as GDP growth, unemployment it will remain restructured for a period of year from the
taking into account expected changes in the exposure and loss, the effective portion of the gain or loss on the
rates etc., as considered relevant so as to determine the date on which it has been restructured.
after the reporting date, including repayments of principal hedging instrument is recorded in the corresponding income
and interest, whether scheduled by contract or otherwise, impact of macroeconomic factors on the Company’s ECL Loans which have been renegotiated or modified in or expense line of the statement of profit and loss. When the
expected drawdowns on committed facilities, and accrued estimates. accordance with RBI Notifications - RBI/2020-21/16 DOR. forecast transaction subsequently results in the recognition
interest from missed payments. In case of Stage 3 loans The inputs and models used for calculating ECLs are No.BP.BC/3/21.04.048/2020-21- Resolution Framework of a non-financial asset or a non-financial liability, the gains
EAD represents exposure when the default occurred. for COVID-19 related Stress and RBI/2020-21/17 DOR. and losses previously recognised in OCI are reversed and
recalibrated periodically through the use of available
No.BP.BC/4/21.04.048/2020-21- Micro, Small and Medium included in the initial cost of the asset or liability.
LGD: The Loss Given Default is an estimate of the loss incremental and recent information. Further, internal
Enterprises (MSME) sector – Restructuring of Advances
arising in the case where a default occurs at a given time. estimates of PD, LGD rates used in the ECL model may When a hedging instrument expires, is sold, terminated,
It is based on the difference between the contractual have been classified as Stage 2 due to significant increase
not always capture all the characteristics of the market exercised, or when a hedge no longer meets the criteria
cash flows due and those that the lender would expect to in credit risk.
/ external environment as at the date of the financial for hedge accounting, any cumulative gain or loss that
receive, including from the realisation of any collateral. It is statements. To reflect this, qualitative adjustments or 3.9 Hedge accounting has been recognised in OCI at that time remains in OCI
usually expressed as a percentage of the EAD. overlays are made as temporary adjustments to reflect the and is recognised when the hedged forecast transaction

The Company makes use of derivative instruments to
Impairment losses and releases are accounted for and emerging risks reasonably manage exposures to interest rate and foreign currency. In is ultimately recognised in the statement of profit and
disclosed separately from modification losses or gains that order to manage particular risks, the Company applies hedge loss. When a forecast transaction is no longer expected to
3.6 Collateral repossessed
are accounted for as an adjustment of the financial asset’s accounting for transactions that meet specified criteria. occur, the cumulative gain or loss that was reported in OCI
gross carrying value The Company generally does not use the assets is immediately transferred to the statement of profit and
repossessed for the internal operations. The underlying At the inception of a hedge relationship, the Company
loss.
The mechanics of the ECL method are summarised below: formally designates and documents the hedge relationship
loans in respect of which collaterals have been repossessed
Stage 1: The 12mECL is calculated as the portion of
to which the Company wishes to apply hedge accounting 3.10 Recognition of interest income
with an intention to realize by way of sale are considered as
LTECLs that represent the ECLs that result from default Stage 3 assets and the ECL allowance is determined based and the risk management objective and strategy for 3.10.1 The effective interest rate method
events on a financial instrument that are possible within undertaking the hedge. The documentation includes the
on the estimated net realisable value of the repossessed Under Ind AS 109 interest income is recorded using
the 12 months after the reporting date. The Company Company’s risk management objective and strategy for
asset. The Company resorts to regular repossession of the effective interest rate (‘EIR’) method for all financial
calculates the 12mECL allowance based on the expectation undertaking hedge, the hedging/ economic relationship,
collateral provided against vehicle loans. Further, in its instruments measured at amortised cost. The EIR is the rate
of a default occurring in the 12 months following the the hedged item or transaction, the nature of the risk being
normal course of business, the Company from time to that discounts estimated future cash receipts through the
reporting date. These expected 12-month default hedged, hedge ratio and how the entity will assess the
time, also exercises its right over property through legal expected life of the financial instrument to the net carrying
probabilities are applied to a forecast EAD and multiplied effectiveness of changes in the hedging instrument’s fair
procedures which include seizure of the property. amount of the financial asset.
by the expected LGD and discounted by an approximation value in offsetting the exposure to changes in the hedged
to the original EIR. As per the Company's accounting policy, collateral item’s fair value or cash flows attributable to the hedged 3.10.2 Interest Income
repossessed are not recorded on the balance sheet. risk. Such hedges are expected to be highly effective in
Stage 2: When a loan has shown a significant increase
The EIR (and therefore, the amortised cost of the asset) is
3.7 Write-offs achieving offsetting changes in fair value or cash flows calculated by taking into account of fees and costs that
in credit risk since origination, the Company records an
and are assessed on an ongoing basis to determine that are an integral part of the EIR. For credit-impaired financial
allowance for the LTECLs PDs and LGDs are estimated over Financial assets are written off either partially or in their
they actually have been highly effective throughout the assets interest income is calculated by applying the EIR to
the lifetime of the instrument. The expected cash shortfalls entirety only when the Company has no reasonable
financial reporting periods for which they were designated. the amortised cost of the credit-impaired financial assets
are discounted by an approximation to the original EIR. expectation of recovery. If the amount to be written
Hedges that meet the strict criteria for hedge accounting (i.e. the gross carrying amount less the allowance for
Stage 3: For loans considered credit-impaired, the
off is greater than the accumulated loss allowance, the
Company recognises the lifetime expected credit losses for difference recorded as an expense in the period of write are accounted for, as described below: expected credit losses).
105 106
3.11 Taxes recognised only to the extent that it is probable that the expected from their disposal. The difference between the 3.14 Intangible assets
temporary differences will reverse in the foreseeable net disposal proceeds and the carrying amount of the
3.11.1 Current tax The Company’s other intangible assets mainly include the
future and taxable profit will be available against asset is recognised in the statement of profit and loss in value of computer software.
Current tax assets and liabilities for the current and which the temporary differences can be utilised the period of derecognition.
prior years are measured at the amount expected to An intangible asset is recognised only when its cost can
The carrying amount of deferred tax assets is reviewed 3.13 Property, plant and equipment be measured reliably and it is probable that the expected
be recovered from, or paid to, the taxation authorities.
at each reporting date and reduced to the extent that it Property plant and equipment is stated at cost excluding future economic benefits that are attributable to it will
The tax rates and tax laws used to compute the amount
is no longer probable that sufficient taxable profit will be the costs of day–to–day servicing, less accumulated flow to the Company.
are those that are enacted, or substantively enacted, by available to allow all or part of the deferred tax asset to be depreciation and accumulated impairment in value. Intangible assets acquired separately are measured on
the reporting date in the countries where the Company utilised. Unrecognised deferred tax assets are re-assessed Changes in the expected useful life are accounted for initial recognition at cost. Subsequently, they are carried at
operates and generates taxable income. at each reporting date and are recognised to the extent by changing the amortisation period or methodology, cost less accumulated amortisation and impairment losses
Current income tax relating to items recognised outside that it has become probable that future taxable profits will as appropriate, and treated as changes in accounting if any, and are amortised over their estimated useful life on
profit or loss is recognised outside profit or loss (either allow the deferred tax asset to be recovered. estimates.
the straight-line basis over a 3-year period or the license
in other comprehensive income or in equity). Current Deferred tax assets and liabilities are measured at the tax Depreciation is calculated using the straight–line method period whichever is lower.
tax items are recognised in correlation to the underlying rates that are expected to apply in the year when the asset to write down the cost of property and equipment to their
transaction either in OCI or directly in equity. Management The carrying amount of the assets is reviewed at each
is realised or the liability is settled, based on tax rates (and residual values over their estimated useful lives. Land is not
periodically evaluates positions taken in the tax returns Balance sheet date to ascertain impairment based on
tax laws) that have been enacted or substantively enacted depreciated.
internal or external factors. Impairment is recognised, if
with respect to situations in which applicable tax at the reporting date. Deferred tax relating to items Useful life of assets as per Schedule II: the carrying value exceeds the higher of the net selling
regulations are subject to interpretation and establishes recognised outside profit or loss is recognised outside
Asset Description Estimated Useful Life price of the assets and its value in use.
provisions where appropriate. profit or loss (either in other comprehensive income or in
Buildings 60 years 3.15 Impairment of non–financial assets
3.11.2 Deferred Tax equity). Deferred tax items are recognised in correlation Computer Equipment 3 years
to the underlying transaction either in OCI or directly in Other Equipment 5 years The Company assesses, at each reporting date, whether
Deferred tax is provided on temporary differences at Leasehold improvements Lease Period or 5 years,
equity. there is an indication that an asset may be impaired. If
the reporting date between the tax bases of assets and whichever is lower
Deferred tax assets and deferred tax liabilities are offset if a any indication exists, or when annual impairment testing
liabilities and their carrying amounts for financial reporting
Useful life of assets based on Management’s estimation for an asset is required, the Company estimates the asset’s
purposes. legally enforceable right exists to set off current tax assets
and which are different from those specified in schedule II: recoverable amount. An asset’s recoverable amount is the
against current tax liabilities and the deferred taxes relate
Deferred tax liabilities are recognised for all taxable higher of an asset’s or cash-generating unit’s (CGU) fair
to the same taxable entity and the same taxation authority. Asset Description Estimated Useful Life
temporary differences, except: value less costs of disposal and its value in use. Recoverable
3.12 Investment Property Furniture and Fixtures* 5 years
• In respect of taxable temporary differences associated Vehicles* 5 years amount is determined for an individual asset, unless the
with investments in subsidiaries, where the timing Investment property represents property held to earn asset does not generate cash inflows that are largely
of the reversal of the temporary differences can be rentals or for capital appreciation or both. *The Company, based on technical assessment made by technical independent of those from other assets or Group of assets.
controlled and it is probable that the temporary expert and management estimate, depreciates Furniture & When the carrying amount of an asset or CGU exceeds its
Investment properties are measured initially at cost,
differences will not reverse in the foreseeable future Fixtures and vehicles over estimated useful lives which are recoverable amount, the asset is considered impaired and
including transaction costs. Subsequent to initial recognition,
different from the useful life prescribed in Schedule II to the is written down to its recoverable amount.
Deferred tax assets are recognised for all deductible investment properties are stated at cost less accumulated
Companies Act, 2013 In assessing value in use, the estimated future cash flows
temporary differences, the carry forward of unused tax depreciation and accumulated impairment loss, if any.
credits and any unused tax losses. Deferred tax assets are The residual values, useful lives and methods of are discounted to their present value using a pre-tax
Depreciation on building classified as investment property
recognised to the extent that it is probable that taxable depreciation of property, plant and equipment are discount rate that reflects current market assessments of
has been provided on the straight-line method over a
profit will be available against which the deductible reviewed at each financial year end and adjusted the time value of money and the risks specific to the asset.
period of 60 years based on the Company’s estimate
prospectively, if appropriate In determining fair value less costs of disposal, recent
temporary differences, and the carry forward of unused of their useful lives taking into consideration technical
Property plant and equipment is derecognised on disposal market transactions are taken into account. If no such
tax credits and unused tax losses can be utilised, except: factors, which is the same as the period prescribed in Sch II
or when no future economic benefits are expected from transactions can be identified, an appropriate valuation
• When the deferred tax asset relating to the deductible to the Companies Act 2013.
its use. Any gain or loss arising on derecognition of the model is used. These calculations are corroborated by
temporary difference arises from the initial recognition Though the Company measures investment property using valuation multiples, quoted share prices for publicly traded
asset (calculated as the difference between the net
of an asset or liability in a transaction that is not cost based measurement, the fair value of investment companies or other available fair value indicators.
disposal proceeds and the carrying amount of the asset)
a business combination and, at the time of the property is disclosed in the notes. Fair values are determined
is recognised in other income / expense in the statement The Company bases its impairment calculation on detailed
transaction, affects neither the accounting profit nor based on an annual evaluation performed by an external
of profit and loss in the year the asset is derecognised. budgets and forecast calculations, which are prepared
taxable profit or loss independent valuer applying valuation models.
The date of disposal of an item of property, plant and separately for each of the Company’s CGUs to which the
•
In respect of deductible temporary differences Investment properties are derecognised either when they equipment is the date the recipient obtains control of that individual assets are allocated. These budgets and forecast
associated with investments in subsidiaries, associates have been disposed of or when they are permanently item in accordance with the requirements for determining calculations generally cover a period of five years. For
and interests in joint ventures, deferred tax assets are withdrawn from use and no future economic benefit is when a performance obligation is satisfied in Ind AS 115. longer periods, a long-term growth rate is calculated and
107 108
applied to project future cash flows after the fifth year. To Superannuation Fund administered by trustees and The cumulative expense recognised for equity-settled The fair value of an asset or a liability is measured using
estimate cash flow projections beyond periods covered managed by Life Insurance Corporation of India (“LIC”). transactions at each reporting date until the vesting date the assumptions that market participants would use
by the most recent budgets/forecasts, the Company The Company has no liability for future Superannuation reflects the extent to which the vesting period has expired when pricing the asset or liability, assuming that market
extrapolates cash flow projections in the budget using Fund benefits other than its contribution and recognizes and the Company’s best estimate of the number of equity participants act in their economic best interest.
a steady or declining growth rate for subsequent years, such contributions as an expense in the Statement of Profit instruments that will ultimately vest. The statement of A fair value measurement of a non-financial asset takes
unless an increasing rate can be justified. In any case, and Loss in the period when services are rendered by the profit and loss expense or Credit for a period represents into account a market participant’s ability to generate
this growth rate does not exceed the long-term average employees. the movement in cumulative expense recognised as at economic benefits by using the asset in its highest and
growth rate for the products, industries, or country or the beginning and end of that period and is recognised in
The Company makes contribution to a Gratuity Fund best use or by selling it to another market participant that
countries in which the entity operates, or for the market in employee benefits expense.
administered by trustees and managed by LIC. The would use the asset in its highest and best use.
which the asset is used.
Company accounts its liability for future gratuity benefits The dilutive effect of outstanding options is reflected as
Impairment losses of continuing operations, are recognised based on actuarial valuation, as at the Balance Sheet date, The Company uses valuation techniques that are
additional share dilution in the computation of diluted appropriate in the circumstances and for which sufficient
in the statement of profit and loss. determined every year by an independent actuary using earnings per share.
the Projected Unit Credit method. data are available to measure fair value, maximising the
For assets excluding goodwill, an assessment is made at
If the options vests in instalments (i.e. the options vest use of relevant observable inputs and minimising the use
each reporting date to determine whether there is an Re-measurements, comprising of actuarial gains and pro rata over the service period), then each instalment of unobservable inputs.
indication that previously recognised impairment losses losses, the effect of the asset ceiling, excluding amounts
is treated as a separate share option grant because each In order to show how fair values have been derived,
no longer exist or have decreased. If such indication included in net interest on the net defined benefit liability
instalment has a different vesting period. financial instruments are classified based on a hierarchy of
exists, the Company estimates the asset’s or CGU’s and the return on plan assets (excluding amounts included
recoverable amount. A previously recognised impairment in net interest on the net defined benefit liability), are 3.18 Provisions valuation techniques, as summarised below:
loss is reversed only if there has been a change in the recognised immediately in the balance sheet with a Provisions are recognised when the Company has a present • Level 1 financial instruments - Those where the inputs
assumptions used to determine the asset’s recoverable corresponding debit or credit to retained earnings through obligation (legal or constructive) as a result of past events, used in the valuation are unadjusted quoted prices
amount since the last impairment loss was recognised. The OCI in the period in which they occur. Remeasurements and it is probable that an outflow of resources embodying from active markets for identical assets or liabilities
reversal is limited so that the carrying amount of the asset are not reclassified to profit or loss in subsequent periods. economic benefits will be required to settle the obligation, that the Company has access to at the measurement
does not exceed its recoverable amount, nor exceed the
Past service costs are recognised in profit or loss on the and a reliable estimate can be made of the amount of the date. The Company considers markets as active only
carrying amount that would have been determined, net of
earlier of: obligation. When the effect of the time value of money is if there are sufficient trading activities with regards
depreciation, had no impairment loss been recognised for
• The date of the plan amendment or curtailment, and material, the Company determines the level of provision to the volume and liquidity of the identical assets or
the asset in prior years. Such reversal is recognised in the
by discounting the expected cash flows at a pre-tax rate liabilities and when there are binding and exercisable
statement of profit or loss unless the asset is carried at a •
The date that the Company recognises related reflecting the current rates specific to the liability. The price quotes available on the balance sheet date.
revalued amount, in which case, the reversal is treated as a restructuring costs expense relating to any provision is presented in the Level 2 financial instruments - Those where the
•
revaluation increase.
Net interest is calculated by applying the discount rate statement of profit and loss net of any reimbursement. inputs that are used for valuation and are significant,
3.16 Retirement and other employee benefits to the net defined benefit liability or asset. The Company
3.19 Dividends on ordinary shares are derived from directly or indirectly observable
Retirement benefit in the form of provident fund is a recognises the following changes in the net defined benefit
The Company recognises a liability to make cash distributions market data available over the entire period of the
defined contribution scheme. The Company has no obligation as an expense in the statement of profit and loss:
to equity holders when the distribution is authorised and the instrument’s life. Such inputs include quoted prices
obligation, other than the contribution payable to the • Service costs comprising current service costs, past- for similar assets or liabilities in active markets, quoted
provident fund. The Company recognises contribution distribution is no longer at the discretion of the Company.
service costs, gains and losses on curtailments and prices for identical instruments in inactive markets
payable to the provident fund scheme as an expense, As per the Companies Act, 2013 in India, a distribution
non-routine settlements; and and observable inputs other than quoted prices such
when an employee renders the related service. If the is authorised when it is approved by the shareholders. A
• Net interest expense or income corresponding amount is recognised directly in equity. as interest rates and yield curves, implied volatilities,
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution 3.17 Share Based Payments and credit spreads. In addition, adjustments may be
3.20 Determination of Fair value
already paid, the deficit payable to the scheme is required for the condition or location of the asset
Stock options are granted to the employees under the The Company measures financial instruments, such as,
recognised as a liability after deducting the contribution or the extent to which it relates to items that are
stock option scheme. The costs of stock options granted derivatives at fair value at each balance sheet date.
already paid. If the contribution already paid exceeds the to the employees (equity-settled awards) of the Company comparable to the valued instrument. However, if
contribution due for services received before the balance are measured at the fair value of the equity instruments Fair value is the price that would be received to sell an such adjustments are based on unobservable inputs
sheet date, then excess is recognised as an asset to the granted. For each stock option, the measurement of fair asset or paid to transfer a liability in an orderly transaction which are significant to the entire measurement, the
extent that the pre-payment will lead to, for example, a value is performed on the grant date. The grant date is the between market participants at the measurement date. Company will classify the instruments as Level 3.
reduction in future payment or a cash refund. date on which the Company and the employees agree to The fair value measurement is based on the presumption • Level 3 financial instruments - Those that include
Employees’ State Insurance: The Company contributes to the stock option scheme. The fair value so determined is that the transaction to sell the asset or transfer the liability one or more unobservable input that is significant to
Employees State Insurance Scheme and recognizes such revised only if the stock option scheme is modified in a takes place either: the measurement as whole.
contribution as an expense in the Statement of Profit manner that is beneficial to the employees. • In the principal market for the asset or liability, or
For assets and liabilities that are recognised in the financial
and Loss in the period when services are rendered by the • In the absence of a principal market, in the most
This cost is recognised, together with a corresponding statements on a recurring basis, the Company determines
employees. advantageous market for the asset or liability
increase in share-based payment (SBP) reserves in equity, whether transfers have occurred between levels in the
Superannuation: The Company contributes a sum over the period in which the performance and/or service The principal or the most advantageous market must be hierarchy by re-assessing categorisation (based on the
equivalent to 15% of eligible employees’ salary to a conditions are fulfilled in employee benefits expense. accessible by the Company. lowest level input that is significant to the fair value
109 110
measurement as a whole) at the end of each reporting 3.21.3 Contract Balances Non-monetary items that are measured in terms of transactions of non-cash nature and any deferrals or
period. historical cost in a foreign currency are translated using accruals of past or future cash receipts or payments.
Contract assets
the exchange rates at the dates of the initial transactions.
The Company evaluates the levelling at each reporting A contract asset is the right to consideration in exchange For the purpose of the Statement of Cash Flows, cash and
Non-monetary items measured at fair value in a foreign
period on an instrument-by-instrument basis and for services transferred to the customer. If the Company cash equivalents as defined above, net of outstanding
currency are translated using the exchange rates at the
reclassifies instruments when necessary based on the facts performs by transferring services to a customer before the date when the fair value is determined. The gain or loss bank overdrafts as they are considered an integral part of
at the end of the reporting period. customer pays consideration or before payment is due, a arising on translation of non-monetary items measured cash management of the Company.
3.21 Recognition of Income contract asset is recognised for the earned consideration at fair value is treated in line with the recognition of the 3.29 Cash and Cash equivalents
that is conditional. gain or loss on the change in fair value of the item (i.e.,
Revenue (other than for those items to which Ind AS 109 Cash and cash equivalent in the balance sheet comprise
Contract liabilities translation differences on items whose fair value gain or
Financial Instruments are applicable) is measured at fair loss is recognized in OCI or profit or loss are also recognized cash at banks and on hand and short-term deposits with
value of the consideration received or receivable. A contract liability is the obligation to transfer services in OCI or profit or loss, respectively). an original maturity of three months or less, which are
The Company recognises revenue from contracts with to a customer for which the Company has received subject to an insignificant risk of changes in value.
consideration (or an amount of consideration is due) from
3.25 Earnings Per Share
customers based on a five-step model as set out in 3.30 Leases
the customer. If a customer pays consideration before the Basic Earnings Per Share is calculated by dividing the
Ind AS 115:
Company transfers services to the customer, a contract net profit or loss for the period attributable to equity The Company’s lease asset consists of leases for buildings.
Step 1: Identify contract(s) with a customer: A contract is liability is recognised when the payment is made or the shareholders by the weighted average number of equity The Company assesses whether a contract contains a
defined as an agreement between two or more parties payment is due (whichever is earlier). Contract liabilities shares outstanding during the period. lease, at inception of a contract. A contract is, or contains,
that creates enforceable rights and obligations and sets are recognised as revenue when the Company performs The weighted average number of equity shares outstanding a lease if the contract conveys the right to control the use
out the criteria for every contract that must be met. under the contract. during the period and for all periods presented is adjusted of an identified asset for a period of time in exchange for
Step 2: Identify performance obligations in the contract: A 3.22 Dividend Income for events, such as bonus shares, other than the conversion consideration. To assess whether a contract conveys the
performance obligation is a promise in a contract with a of potential equity shares, that have changed the number right to control the use of an identified asset, the Company
Dividend income (including from FVOCI investments) of equity shares outstanding, without a corresponding
customer to transfer a good or service to the customer. is recognised when the Company’s right to receive assesses whether: (i) the contract involves the use of an
change in resources. For the purpose of calculating diluted identified asset (ii) the Company has substantially all of the
Step 3: Determine the transaction price: The transaction the payment is established and it is probable that the earnings per share, the net profit or loss for the period
price is the amount of consideration to which the Company economic benefits associated with the dividend will flow economic benefits from the use of the asset through the
attributable to equity shareholders and the weighted
expects to be entitled in exchange for transferring to the entity and the amount of the dividend can be period of the lease and (iii) the Company has the right to
average number of shares outstanding during the period
promised goods or services to a customer, excluding measured reliably. This is generally when the shareholders direct the use of the asset.
is adjusted for the effects of all dilutive potential equity
amounts collected on behalf of third parties. approve the dividend. shares. At the date of commencement of the lease, the Company
Step 4: Allocate the transaction price to the performance 3.23 Input Tax credit (Goods and Service Tax) 3.26 Segment Information recognises a right-to-use asset (“RTU”) and a corresponding
obligations in the contract: For a contract that has more Input Tax Credit is accounted for in the books in the period lease liability for all lease arrangements in which it is a
The accounting policies adopted for Segment reporting
than one performance obligation, the Company allocates when the underlying service / supply received is accounted lessee, except for leases with a term of twelve months or
are in line with the accounting policies of the Company
the transaction price to each performance obligation in to the extent permitted as per the applicable regulatory less (short-term leases) and low value leases. For these
with the following additional policies:
an amount that depicts the amount of consideration to laws and when there is no uncertainty in availing / utilising short-term and low value leases, the Company recognises
Revenue and expenses have been identified to segments the lease payments as an operating expense on a straight-
which the Company expects to be entitled in exchange for the same. The ineligible input credit is charged off to the
on the basis of their relationship to the operating activities
satisfying each performance obligation. respective expense or capitalised as part of asset cost as line basis over the term of the lease.
of the Segment. Revenue and expenses, which relate to the
applicable. enterprise as a whole and are not allocable to Segments Certain lease arrangements include the options to extend
Step 5: Recognise revenue when (or as) the Company
satisfies a performance obligation. 3.24 Foreign Currency transactions on a reasonable basis have been included under “Un- or terminate the lease before the end of the lease term.
allocable”. RTU assets and lease liabilities includes these options
3.21.1 Interest on overdue balances and Other Charges The Company’s financial statements are presented in Indian
Rupees (INR) which is also the Company’s functional currency. Assets and liabilities have been identified to segments on when it is reasonably certain that they will be exercised.
Overdue interest in respect of loans is recognised upon the basis of their relationship to the operating activities
Transactions in foreign currencies are initially recorded
Right-to-Use assets are depreciated from the
realisation. of the Segment. Assets and liabilities, which relate to the
by the Company at their respective functional currency commencement date on a straight-line basis over the
3.21.2 Fee Income & Sale of Service enterprise as a whole and are not allocable to Segments
spot rates at the date the transaction first qualifies for shorter of the lease term. Right to use assets are evaluated
on a reasonable basis have been included under “Un-
a) Fee income from loans are recognised upon satisfaction recognition. for recoverability whenever events or changes in the
allocable”.
of following: Income and expenses in foreign currencies are initially circumstances indicate that their carrying amounts may
3.27 Equity Investment in Subsidiaries and associates not be recoverable.
i) Completion of service recorded by the Company at the exchange rates prevailing
on the date of the transaction. Investment in Subsidiaries and Joint Ventures are carried The lease liability is initially measured at amortised cost
ii) and realisation of the fee income. at Cost in the Separate Financial Statements as permitted
Foreign currency denominated monetary assets and at the present value of the future lease payments. The
b)
Servicing and collections fees on assignment are under Ind AS 27.
liabilities are translated at the functional currency spot lease payments are discounted using the incremental
recognised upon completion of service.
rates of exchange at the reporting date and exchange 3.28 Cash Flow Statement borrowing rates in the country of domicile of the leases.
c)
Advertising income is recognised over the contract gains and losses arising on settlement and restatement are Cash flows are reported using the indirect method, where Lease liabilities are remeasured with a corresponding
period as and when related services are rendered. recognized in the statement of profit and loss. by profit / (loss) before tax is adjusted for the effects of adjustment to the related right to use asset if the Company
111 112
changes its assessment if the whether it will exercise an i Business Model Assessment required in establishing fair values. Judgements and or not to exercise the option to renew or terminate the
extension or a termination option. estimates include considerations of liquidity and model lease. That is, it considers all relevant factors that create an
The Company from time to time enters into direct bilateral
The Company has opted to present the RTU as a part of inputs related to items such as credit risk (both own and economic incentive for it to exercise either the renewal or
assignment deals, which qualify for de-recognition under
the block of asset to which the lease pertains to and counterparty), funding value adjustments, correlation and termination.
Ind AS 109. Accordingly, the assessment of the Company’s
consequently, the RTU asset has been presented as a part volatility. For further details about determination of fair
business model for managing its financial assets becomes b. Estimating the incremental borrowing rate
of Property, plant and equipment under the Buildings value please see Fair value note in Accounting policy.
a critical judgment. Further, the Company also made
iv Impairment of financial asset The Company cannot readily determine the interest rate
block, whereas the lease liability is presented under Other an investment in the Government securities in order to
implicit in the lease, therefore, it uses its incremental
Financial Liabilities in the Balance Sheet. Lease payments comply the liquidity ratio compliance as required by RBI The measurement of impairment losses across all categories
made by the Company are classified as financing cash borrowing rate (IBR) to measure lease liabilities. The IBR is
pursuant to its master directions. The Company intends to of financial assets requires judgement, in particular, the
flows. estimation of the amount and timing of future cash flows the rate of interest that the Company would have to pay to
hold these assets till maturity expects that any sale if any
necessitated by requirements are likely to be infrequent and collateral values when determining impairment losses for its borrowings.
The Company applies the short-term lease recognition
and immaterial. Accordingly the related assessment and the assessment of a significant increase in credit risk. vi Provisions and other contingent liabilities
exemption to its short-term leases of Buildings (i.e.,
becomes a critical judgement to determine the business These estimates are driven by a number of factors, changes
those leases that have a lease term of 12 months or less When the Company can reliably measure the outflow
in which can result in different levels of allowances.
from the commencement date and do not contain a model for such financial assets under Ind AS. Refer Note
of economic benefits in relation to a specific case and
purchase option). Lease payments on short-term leases 3.2.1.1 for related details. The Company’s ECL calculations are outputs of complex
models with a number of underlying assumptions considers such outflows to be probable, the Company
are recognised as expense on a straight-line basis over the ii De-recognition of Financial instruments regarding the choice of variable inputs and their records a provision against the case. Where the probability
lease term.
The Company enters into securitisation transactions where interdependencies. Elements of the ECL models that are of outflow is considered to be remote, or probable, but a
3.31 Trade receivables financial assets are transferred to a structured entity for a considered accounting estimates include: reliable estimate cannot be made, a contingent liability is
The Company follows ‘simplified approach’ for recognition consideration. The financial assets transferred qualify for • The Company’s criteria for assessing if there has been a disclosed.
of impairment loss allowance on trade receivables. The derecognition only when substantial risk and rewards are significant increase in credit risk and so allowances for Given the subjectivity and uncertainty of determining the
application of simplified approach does not require transferred. financial assets should be measured on a LTECL basis
probability and amount of losses, the Company takes into
the Company to track changes in credit risk. Rather, and the qualitative assessment

This assessment includes judgements reflecting all account a number of factors including legal advice, the
it recognises impairment loss allowance based on relevant evidence including the past performance of the • The segmentation of financial assets when their ECL is
stage of the matter and historical evidence from similar
lifetime ECLs at each reporting date, right from its initial assets transferred and credit risk that the Company has assessed on a collective basis
incidents. Significant judgement is required to conclude
recognition. The Company uses a provision matrix to been exposed to. Based on this assessment, the Company • Development of ECL models, including the various on these estimates.
determine impairment loss allowance on portfolio of believes that the credit enhancement provided pursuant formulas and the choice of inputs
its trade receivables. The provision matrix is based on its to the transfer of financial assets under securitisation are
4B. Amendments to Ind AS 116:
• Determination of temporary adjustments as qualitative
historically observed default rates over the expected life of higher than the loss incurred on the similar portfolios adjustment or overlays based on broad range of
Covid-19-Related Rent Concessions
the trade receivables and is adjusted for forward-looking of the Company hence it has been concluded that forward looking information as economic inputs The amendments provide relief to lessees from applying
estimates. At every reporting date, the historical observed securitisation transactions entered by the Company does Ind AS 116 guidance on lease modification accounting
The Company has considered the impact of Covid-19
default rates are updated for changes in the forward- not qualify de-recognition since substantial risk and pandemic and the moratorium given to borrowers for rent concessions arising as a direct consequence
looking estimates. rewards of the ownership has not been transferred. The pursuant to the Covid-19 regulatory package announced of the Covid-19 pandemic. As a practical expedient, a
4A. Significant accounting judgements, transactions are treated as financing arrangements and by Reserve Bank of India, in determination of impairment lessee may elect not to assess whether a Covid-19 related
estimates and assumptions the sale consideration received is treated as borrowings. allowance for the year. Also refer note 2.3. rent concession from a lessor is a lease modification. A
The preparation of the Company’s financial statements iii Fair value of financial instruments It has been the Company’s policy to regularly review its lessee that makes this election accounts for any change
requires management to make judgements, estimates and models in the context of actual loss experience and adjust in lease payments resulting from the Covid-19 related
The fair value of financial instruments is the price that
when necessary.
assumptions that affect the reported amount of revenues, would be received to sell an asset or paid to transfer a rent concession the same way it would account for the
expenses, assets and liabilities, and the accompanying liability in an orderly transaction in the principal (or most
v Leases change under Ind AS 116, if the change were not a lease
disclosures, as well as the disclosure of contingent advantageous) market at the measurement date under a.
Determining the lease term of contracts with modification.
liabilities. Uncertainty about these assumptions and current market conditions (i.e., an exit price) regardless renewal and termination options – Company as
The amendments are applicable for annual reporting
estimates could result in outcomes that require a material of whether that price is directly observable or estimated lessee
periods beginning on or after the 1 April 2020. In case,
adjustment to the carrying amount of assets or liabilities using another valuation technique. When the fair values The Company determines the lease term as the non- a lessee has not yet approved the financial statements
affected in future period. of financial assets and financial liabilities recorded in the cancellable term of the lease, together with any periods
for issue before the issuance of this amendment, then
In the process of applying the Company’s accounting balance sheet cannot be derived from active markets, they covered by an option to extend the lease if it is reasonably
the same may be applied for annual reporting periods
policies, management has made the following are determined using a variety of valuation techniques certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain beginning on or after the 1 April 2019. This amendment
judgements/estimates, which have a significant risk of that include the use of valuation models. The inputs to
not to be exercised. The Company applies judgement had no significant impact on the consolidated financial
causing a material adjustment to the carrying amounts of these models are taken from observable markets where
in evaluating whether it is reasonably certain whether statements of the Company.
assets and liabilities within the next financial year. possible, but where this is not feasible, estimation is
113 114
Particulars As at As at Particulars As at As at
March 31,2021 March 31,2020 March 31,2021 March 31,2020
Note : 5 CASH AND CASH EQUIVALENTS Note : 8 RECEIVABLES (Unsecured)
Cash on hand 3,179 329 (i) Trade Receivables
Balances with banks Considered Good* 2,031 2,176
- In Current Accounts 1,49,221 61,689 Subtotal (i) 2,031 2,176
- In Deposit Accounts - Original maturity of 3 months or less - 2,84,029 (ii) Other Receivables
Cheques, drafts on hand 2,970 141 Considered Good* 4,612 3,698
Total 1,55,370 3,46,188 Subtotal (ii) 4,612 3,698
Total (i)+(ii) 6,643 5,874
` in lakhs
Particulars As at As at *Includes dues from related parties (Refer note 37)
March 31,2021 March 31,2020 No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person.
Note : 6 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
` in lakhs
- In Deposit Accounts - Original maturity more than 3 months 2,78,758 3,11,805
Particulars As at As at
- In earmarked accounts March 31,2021 March 31,2020
- In Unpaid Dividend Accounts 74 73 Note : 9 LOANS (At amortised cost)
- Deposits with Banks as collateral towards securitisation loan 31,978 37,836 (A)
- Deposits with Banks as collateral towards Overdraft facility (Refer note18) 57,000 - (i) Bills Discounted 13,417 8,598
- Other Deposit Account on amalgamation of Cholamandalam Factoring Limited 8 8 (ii) Term loans 68,14,958 56,83,972
Total 3,67,818 3,49,722 Total (A) - Gross 68,28,375 56,92,570
Less: Impairment Allowance for (i) & (ii) (2,44,441) (1,52,297)
` in lakhs Total (A) - Net 65,83,934 55,40,273
As at March 31,2021 As at March 31, 2020 (B)
Particulars Notional Fair Fair Notional Fair Fair
(i) Secured by tangible assets 67,85,357 56,63,436
amounts Value Value amounts Value Value
-Assets -Liabilites -Assets -Liabilites (ii) Unsecured 43,018 29,134
Total (B) - Gross 68,28,375 56,92,570
Note : 7 DERIVATIVE FINANCIAL INSTRUMENTS
Part I Less: Impairment Allowance for (i) & (ii) (2,44,441) (1,52,297)
Total (B) - Net 65,83,934 55,40,273
(i) Other derivatives - Cross Currency Interest Rate Swap 2,24,373 2,634 914 2,34,373 11,420 -
All loans are in India and have been granted to individuals or entities other than public sector
(ii) Interest rate Swaps 1,40,286 1,953 - - - -
Secured indicates loans secured, wholly or partly, by way of hypothecation of automobile assets and / or pledge of securities and / or
(iii) Forward Contracts 1,40,286 - 11,828 - - - equitable mortgage of property and / or equipment.
Total Derivative financial Instruments 5,04,945 4,587 12,742 2,34,373 11,420 - Term loans includes unsecured short term loans to a subsidiary and associate. These loans have been classified under Stage 1 Category at
Part II the various reporting periods and related impairment provision as per the Company's accounting policy has been created. The details of
Included in above (Part I) are derivatives held for the same are disclosed below:
hedging and risk management purposes as follows:
` in lakhs
(i) Cash flow hedging:
Others - Cross currency interest rate swap 2,24,373 2,634 914 2,34,373 11,420 - March 31,2021 March 31,2020
Loan - Outstanding Value
Cholamandalam Securities Limited - 700
(iii) Forward Contracts 1,40,286 - 11,828 - - - White Data System India Private Limited 340 340
Total Derivative financial Instruments 5,04,945 4,587 12,742 2,34,373 11,420 - Impairment Allowance
Cholamandalam Securities Limited - 1
The Company has a Board approved policy for entering into derivative transactions. Derivative transaction comprises of Currency, Interest White Data System India Private Limited* 0 0
Rate Swaps and Forward Contracts. The Company undertakes such transactions for hedging interest/foreignexchange risk on borrowings. * Represents amount less than ` 50,000
The Asset Liability Management Committee and Business Committee periodically monitors and reviews the risks involved.
The notional amount for interest rate swap represents the foreign currency borrowing on which Company has entered to hedge the
variable interest rate.
115 116
Note : 9.1 LOANS Note : 9.1 LOANS (Contd.)
An analysis of changes in the gross carrying amount and corresponding ECL allowances in relations to loans ` in lakhs
Gross Carrying amount Impairment allowance
Gross Carrying amount Impairment allowance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Impact of changes on items within - - 4,489 4,489 - - 8,679 8,679
Bills discounted the same stage
Opening as on April 1, 2020 5,142 42 3,414 8,598 31 4 3,173 3,208 Write off (16,842) (7,034) (8,247) (32,123) (259) (2,221) (5,580) (8,060)
New assets originated / Increase 9,678 - 430 10,108 57 - 125 182 Closing as on March 31, 2020 52,69,033 2,02,022 2,12,917 56,83,972 39,091 23,342 86,656 1,49,089
in existing assets (Net)
ECL across stages have been computed on collective basis.
Exposure de-recognised / matured / repaid (5,142) - (147) (5,289) (31) - (103) (134)
The Company uses Days past due of the customer to determine the credit quality of loans
Transfer to Stage 3 - (42) 42 - - (4) 4 -
` in lakhs
Impact on account of exposures transferred - - - - - - 38 38
during the period between stages March 31,2021 March 31,2020
Impact of changes on items within - - - - - - 197 197 Note : 10 INVESTMENTS
the same stage Investment in Equity Instruments*
Closing as on March 31, 2021 9,678 - 3,739 13,417 57 - 3,434 3,491 a) Subsidiaries at cost
Term loans Cholamandalam Home Finance Limited 4,240 4,240
Opening as on April 1, 2020 52,69,032 2,02,024 2,12,916 56,83,972 39,091 23,342 86,656 1,49,089 (Formerly known as Cholamandalam Distribution Services Limited)
New assets originated / Increase 24,24,901 15,298 7,604 24,47,803 37,558 6,175 2,704 46,437 42,400,000 Equity shares of ₹ 10 each fully paid up
in existing assets (Net) Cholamandalam Securities Limited 2,250 2,250
Exposure de-recognised / matured / repaid (11,85,961) (58,821) (47,464) (12,92,246) (20,163) (4,486) (8,028) (32,677) 22,500,014 Equity shares of ₹ 10 each fully paid up
Transfer to Stage 1 65,509 (56,814) (8,695) - 8,889 (6,055) (2,834) - b) Associate at cost
Transfer to Stage 2 (3,52,885) 3,59,980 (7,095) - (8,308) 10,745 (2,437) - White Data System India Private Limited 800 800
Transfer to Stage 3 (81,332) (43,717) 1,25,049 - (2,120) (5,357) 7,477 - 1,275,917 Equity shares of ₹ 10 each fully paid up
Impact on account of exposures transferred 139 10,451 7,862 18,452 112 48,112 34,511 82,735 Vishvakarma Payments Private Limited 0 -
during the period between stages Acquired 2,100 Equity shares of ₹ 10 each fully paid up for Rs 21,000 in March 2021#
Impact of changes on items within - - 8,382 8,382 - - 19,077 19,077 c) Others - Unquoted - FVOCI **
the same stage Amaravathi Sri Venkatesa Paper Mills Limited - -
Write off (14,318) (5,290) (31,797) (51,405) (1,388) (1,512) (20,811) (23,711) 293,272 Equity shares of ₹ 10 each fully paid up#
Closing as on March 31, 2021 61,25,085 4,23,111 2,66,762 68,14,958 53,671 70,964 1,16,315 2,40,950 Saraswat Co-operative Bank Limited 1,000 Equity shares of ₹ 10 each fully paid up# - -
Bills Discounted The Shamrao Vithal Co-operative Bank Limited 1,000 Equity shares of ₹ 25 each fully paid up# - -
Opening as on April 1, 2019 5,367 40 3,453 8,860 13 3 3,157 3,173 Chola Insurance Services Private Ltd. 19,133 Equity shares of ₹10 each fully paid up 2 2
New assets originated / Increase 5,123 42 250 5,415 31 4 100 135 Chennai Willingdon Corporate Foundation 5 shares of ₹ 10 each : Cost ₹ 50 only# - -
in existing assets (Net) d) Investment in Indian Government Securities - amortised cost 1,54,590 -
Exposure de-recognised / matured / repaid (5,349) (39) (289) (5,677) (13) (3) (230) (246) (Issued by Government of India)
Transfer to Stage 3 - - - - - - - -
Total 1,61,882 7,292
Impact on account of exposures transferred - - - - - - - -
*Investments are made in India
during the year between stages (net)
**The Company has designated certain unquoted equity instruments as FVOCI on the basis that these are not held for trading.
Impact of changes on items within the - - - - - - 146 146
same stage (net)
Closing as on March 31, 2020 5,141 43 3,414 8,598 31 4 3,173 3,208 Analysis of changes in the gross carrying amount and corresponding ECL allowances in relation to Investment at Amortised Cost
Term loans ` in lakhs
Opening as on April 1, 2019 49,98,423 2,07,617 1,40,398 53,46,438 18,690 19,724 51,484 89,898 Particulars Gross carrying Impairment
amount - allowance -
New assets originated / Increase in 25,49,193 25,834 9,514 25,84,541 28,640 3,982 4,031 36,653
Stage 1 Stage 1
existing assets (Net) Opening as on April 1, 2020 - -
Exposure de-recognised / matured / repaid (20,60,871) (1,13,388) (48,497) (22,22,756) (13,214) (5,073) (7,497) (25,784) New assets originated 1,54,590 -
Transfer to Stage 1 59,640 (55,972) (3,668) - 6,161 (5,184) (977) - Exposure matured / repaid - -
Transfer to Stage 2 (1,84,591) 1,87,214 (2,623) - (811) 1,491 (680) - Closing as on March 31, 2021 1,54,590 -
Transfer to Stage 3 (76,058) (42,931) 1,18,989 - (348) (3,981) 4,329 -
Impact on account of exposures transferred 139 682 2,562 3,383 232 14,604 32,867 47,703 # represents amount less than ` 1 lakh.
during the year between stages
117 118
` in lakhs Note : 12 DEFERRED TAX (Contd.)
Particulars As at As at Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on 25th November, 2019, the company had exercised the option permitted
March 31,2021 March 31,2020 u/s 115BAA of the Income Tax Act, 1961, to compute income tax at revised rate (i.e., 25.17%) from financial year 2019-20 and accordingly,
Note : 11 OTHER FINANCIAL ASSETS had re-measured deferred tax as at April 1, 2019. The re-measurement has resulted in additional tax expense of ` 12,845 lakhs in the statement
Unsecured - considered good of profit and loss and additional tax benefit of ` 172 lakhs in other Comprehensive income for the previous year.
At amortised cost ` in lakhs
Security deposits 2,280 2,409 Particulars Total
Other advances 2,945 3,136 Note : 13 INVESTMENT PROPERTY
Covid Ex-gratia Claim Receivable 9,647 - Gross carrying amount as at April 1, 2019 14
Interest only strip receivable 41,406 35,782 Additions -
Total 56,278 41,327 Disposals -
Gross carrying amount as at March 31, 2020 14
` in lakhs Additions -
Particulars As at As at Disposals -
March 31,2021 March 31,2020 Gross carrying amount as at March 31, 2021 14
Note : 12 DEFERRED TAX Accumulated depreciation and impairment
Deferred Tax Assets Balance as at April 1, 2019 0
Impairment allowance for financial instruments 61,472 37,741 Depreciation for the year 0
Provision for Contingencies and Undrawn commitments 1,120 999 Depreciation on disposals -
Provision for Compensated Absences and Gratuity 1,792 1,285 Balance as at March 31, 2020** 0
Impact of Effective interest rate adjustment on Financial Assets 6,281 7,815 Depreciation for the year 1
Contract Liability as per IND AS 115 262 413 Depreciation on disposals 0
Difference between Depreciation as per Books of Account and the Income Tax Act, 1961 1,145 919 Balance as at March 31, 2021** 1
Items recognised in OCI 3,932 2,762 Net Carrying amount
Others 637 573 As at March 31, 2020 14
(A) 76,641 52,507 As at March 31, 2021 13
Deferred Tax Liability Useful Life of the asset (In Years) 60
Impact of Effective interest rate adjustment on Financial Liabilities 261 424 Method of depreciation Straight line method
(B) 261 424
Net Deferred Tax Assets (A) - (B) 76,380 52,083 The Company's investment property consists of 4 properties and has let out one property as at March 31, 2021.
** represents amount less than ` 1,00,000
` in lakhs
Year ended March 31,2021 Year ended March 31,2020 Income earned and expense incurred in connection with investment property ` in lakhs

Particulars Income OCI Income OCI
Statement Statement Particulars Year ended Year ended
March 31,2021 March 31,2020
Deferred Tax Assets
Rental Income 4 4
Impairment allowance for financial instruments (23,731) - (5,311) -
Direct Operating expense from property that generated rental income 1 1
Provision for Contingencies and Undrawn commitments (121) - 342 -
Direct Operating expense from property that did not generate the rental income - -
Provision for Compensated Absences and Gratuity (507) - (34) -
Impact of Effective interest rate adjustment on Financial Assets 1,534 - 1,946 - ii) Contractual obligations
Contract Liability as per IND AS 115 151 - 582 - There are no contractual obligations to purchase, construct or develop investment property.
Difference between Depreciation as per Books of Account (226) - (282) -
iii) Leasing Arrangements
and the Income Tax Act, 1961.
Others (64) - (207) -
Certain investment properties are leased out to tenants under cancellable operating lease.
(A) (22,964) - (2,964) - ` in lakhs
Deferred Tax Liability
As at As at
Impact of Effective interest rate adjustment on Financial Liabilities 163 - 432 -
March 31,2021 March 31,2020
Re-measurement gains / (losses) on defined benefit plans (net) - 32 - 125
iv) Fair Value
Cashflow Hedge reserve - 1,138 - 3,261
Investment Property 304 299
(B) 163 1,170 432 3,386
Net deferred tax charge / (reversal) (A) - (B) (23,127) (1,170) (3,396) (3,386)
119 120
Particulars Valuation Significant Range Sensitivity of Fair value Sensitivity ` in lakhs
technique unobservable (Weighted avg) the input to (` in lakhs) (` in lakhs) Particulars Computer
inputs fair value Software
Note : 13 INVESTMENT PROPERTY (Contd.) Note : 15 INTANGIBLE ASSETS
v) Sensitivity analysis Gross carrying amount as at April 1, 2019 5,082
Investment Property Professional Price per ` 7,000 - 13,000 5% 304 15 Additions 1,340
As at March 31, 2021 valuer Sq. feet per Sq. feet Disposals 202
Gross carrying amount as at March 31, 2020 6,220
Investment Property Professional Price per ` 7,000 - 13,000
5% 299 15 Additions 1,133
As at March 31, 2020 valuer Sq. feet per Sq. feet Disposals -
Gross carrying amount as at March 31, 2021 7,353
Accumulated Amortization and impairment
` in lakhs
Balance as at April 1, 2019 3,106
Particulars Freehold Computer Office Furniture Leasehold Vehicles Buildings Total Amortization for the year 1,571
Land Equipment Equipment and Fixtures Improvements (Refer Note below)
Amortization on disposals 204
Owned Right of
Balance as at March 31, 2020 4,473
Assets Use Assets
Amortization for the period 1,235
Note : 14 PROPERTY, PLANT AND EQUIPMENT
Amortization on disposals -
Gross carrying amount 3,956 5,776 2,131 1,823 3,655 1,595 2,566 - 21,502 Balance as at March 31, 2021 5,708
as at April 1, 2019 Net Carrying amount
Additions - 2,406 709 655 1,280 572 137 14,860 20,619 As at March 31, 2020 1,747
Disposals - 8 56 85 40 194 398 - 781 As at March 31, 2021 1,645
Gross carrying amount 3,956 8,174 2,784 2,393 4,895 1,973 2,305 14,860 41,340 Useful Life of the asset (In Years) 3
Method of depreciation Straight line method
as at March 31, 2020
Additions - 1,444 164 77 132 205 - 1,504 3,526
` in lakhs
Disposals - 25 24 6 14 398 - 22 489
Gross carrying amount 3,956 9,593 2,924 2,464 5,013 1,780 2,305 16,342 44,377 March 31,2021 March 31,2020
as at March 31, 2021 Note : 16 OTHER NON FINANCIAL ASSETS
Accumulated depreciation Prepaid expenses 1,495 1,422
/ amortisation and impairment Capital advances 1,006 109
Balance as at April 1, 2019 - 3,206 918 1,115 1,467 414 96 - 7,216 GST Input Credit 1,816 935
Depreciation for the year - 2,013 555 635 998 367 425 4,190 9,183 Others 76 -
Depreciation on disposals - 8 42 67 30 113 398 - 658 Total 4,393 2,466
Balance as at March 31, 2020 - 5,211 1,431 1,683 2,435 668 123 4,190 15,741
Depreciation for the period - 1,923 527 288 885 387 43 4,553 8,606
` in lakhs
Depreciation on disposals - 18 13 5 11 214 - 11 272
Balance as at March 31, 2021 - 7,116 1,945 1,966 3,309 841 166 8,732 24,075 March 31,2021 March 31,2020
Net Carrying amount Note : 17 DEBT SECURITIES (at amortised cost)
As at March 31, 2020 3,956 2,963 1,353 710 2,460 1,305 2,182 10,670 25,599 Redeemable Non-Convertible Debentures
As at March 31, 2021 3,956 2,477 979 498 1,704 939 2,139 7,610 20,302 Medium-Term - Secured 9,34,263 5,74,418
Useful Life of the asset (In Years) - 3 5 5 5 5 60 upto 5 - Commercial Papers - Unsecured 3,01,504 1,58,265
Method of depreciation Straight-line method Total 12,35,767 7,32,683
Note All debt securities have been contracted in India

1. Details of Immovable properties of land and buildings (Owned Assets), whose title deeds have been pledged in favour of Trustees for the benefit 17.1 Security
of debenture holders as security, has been explained in Note 17.1 (i) Redeemable Non-Convertible Debentures - Medium-term is secured by way of specific charge on assets under hypothecation
relating to Vehicle Finance, Loan against property, Bills discounted and other loans and pari passu charge on immovable property
2. The Company has elected to include ROU assets pertaining to lease of buildings as part of the Property, plant and equipment as permitted under which are owned assets of the Company situated at Chennai.
paragraph 47 of Ind AS 116. (ii) The Company has not defaulted in the repayment of dues to its lenders.
121 122
Note : 17 DEBT SECURITIES (at amortised cost) (Contd.) 17.2 Details of Debentures - Contractual principal repayment value (Contd.)
17.2 Details of Debentures - Contractual principal repayment value
(ii) Secured Redeemable Non-Convertible Debentures - Redeemable at premium - No put call option
(i) Secured Redeemable Non-Convertible Debentures - Redeemable at par - No put call option
No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest % No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹
redemption redemption price ₹
₹ in lakhs ₹ in lakhs ₹ in lakhs ₹ in lakhs
250 10,00,000 2,500 2,500 Nov-26 8.55 1250 10,00,000 12,500 - Jul-25 14,61,481 4,61,481
5,000 10,00,000 50,000 - Jul-25 7.92 850 10,00,000 8,500 - Jul-25 13,53,045 3,53,045
1,500 10,00,000 15,000 - Oct-24 6.80 500 10,00,000 5,000 5,000 Jan-23 12,54,470 2,54,470
250 10,00,000 2,500 - Dec-24 12,93,960 2,93,960
3,000 10,00,000 30,000 - Jul-24 7.38
350 10,00,000 3,500 - Oct-24 13,01,025 3,01,025
1,500 10,00,000 15,000 15,000 Apr-24 8.62
1100 10,00,000 11,000 11,000 May-21 12,94,211 2,94,211
5,850 10,00,000 58,500 - Feb-24 6.45 1000 10,00,000 - 10,000 Mar-21 12,76,583 2,76,583
5,500 10,00,000 55,000 - Dec-23 6.10 1150 10,00,000 - 11,500 Dec-20 11,92,230 1,92,230
3,523 10,00,000 35,230 35,230 Sep-23 8.80 2050 10,00,000 - 20,500 May-20 12,63,916 2,63,916
1,500 10,00,000 15,000 - May-23 7.50 190 10,00,000 - 1,900 Apr-20 12,56,100 2,56,100
3,250 10,00,000 32,500 - Apr-23 6.26 500 10,00,000 - 5,000 Apr-20 13,54,976 3,54,976
8,000 10,00,000 80,000 - Mar-23 5.85 to 5.68 800 10,00,000 - 8,000 Apr-20 12,74,682 2,74,682
43,000 72,900
3,350 10,00,000 33,500 13,500 Feb-23 5.70 to 7.41
5,900 10,00,000 59,000 10,000 Dec-22 5.48 to 7.98
6,150 10,00,000 61,500 15,000 Nov-22 5.45 to 8.00 (iii) Secured Redeemable Non-Convertible Debentures - Redeemable at par - with Put option
3,523 10,00,000 35,230 35,230 Sep-22 8.70 No. of Debentures Face Value ₹ Balance as at Due date of Put option Rate of
2,000 10,00,000 20,000 - Jun-22 7.20 redemption date interest %
March 31,2021 March 31,2020
1,050 10,00,000 10,500 10,500 Mar-22 8.35 to 9.06 ₹ in lakhs ₹ in lakhs
2,000 10,00,000 20,000 - Dec-21 6.93
10 10,00,000 100 100 Aug-23 Jul-21 9.06
3,523 10,00,000 35,230 35,230 Sep-21 8.45 100 100
3,250 10,00,000 32,500 12,500 Aug-21 6.74 to 8
2,550 10,00,000 25,500 25,500 Jul-21 8.98 ` in lakhs
4,010 10,00,000 40,100 40,100 Jun-21 8.49 to 8.52 Particulars As at As at
March 31,2021 March 31,2020
4,100 10,00,000 41,000 - May-21 6.90
Note : 18 BORROWINGS (Other than Debt Securities) at amortised cost
4,770 10,00,000 47,700 47,700 Apr-21 8.09 A) Term Loans
1,500 10,00,000 - 15,000 Mar-21 8.85 i) a) From Banks - Secured
600 10,00,000 - 6,000 Feb-21 9.09 Rupee Loans 35,68,218 32,96,247
1,350 10,00,000 - 13,500 Jan-21 8.11 Foreign currency Loans - 11,788
External Commercial Borrowings 2,39,869 2,47,326
3,500 10,00,000 - 35,000 Dec-20 8.00 to 8.98
b) From Banks - Unsecured
1,750 10,00,000 - 17,500 Oct-20 7.75
Short term loans 20,000 -
2,200 10,00,000 - 22,000 Jun-20 8.10 to 9.10 ii) From Other Parties - Secured
4,800 10,00,000 - 48,000 May-20 8.12 to 8.90 Financial Institutions - Rupee Loans
800 10,00,000 - 8,000 Apr-20 8.10 to 9.02 - Rupee Loans 1,72,786 1,63,258
8,50,490 4,62,990 - External Commercial Borrowings 1,37,230 -
Securitisation - Rupee Loans 4,34,452 4,63,131
B) Loan repayable on demand - Secured 1,45,671 1,45,558
from Banks - Rupee Loans (Refer Note 6)
Total 47,18,226 43,27,308
Borrowings within India 43,41,127 40,79,982

Borrowings Outside India 3,77,099 2,47,326
123 124
Note : 18 BORROWINGS (Contd.) 18.2 Details of term loans - Contractual principal repayment value (Contd.)
` in lakhs
18.1 Security
Rate of Interest Maturity Instalments Amount outstanding
(i) Secured term loans from banks and financial institution are secured by way of specific /pari passu charge on assets under hypothecation
March 31,2021 March 31,2020
relating to automobile financing and loans against immovable property.
2 30,000 30,000
(ii) Loan repayable on demand is in the nature of Cash Credit from banks and is secured by way of floating charge on assets under
3 50,000 -
hypothecation and other assets.
4 - 72,500
(iii) The Company has not defaulted in the repayment of dues to its lenders.
6 - 12,500
(iv) Securitisation rupee loan represents the net outstanding value (Net of Investment in Pass-through Certificates) of the proceeds received
3 - 4 years 1 - 12,500
by the Company from securitisation trust in respect of loan assets transferred by the Company pursuant to Deed of Assignment. The
2 - 30,000
Company has provided Credit enhancement to the trust by way of cash collateral and Bank guarantee.
4 - 72,500
18.2 Details of term loans - Contractual principal repayment value 6 - 12,500
` in lakhs
4- 5 years 1 - -
Rate of Interest Maturity Instalments Amount outstanding
2 - 5,000
March 31,2021 March 31,2020

Base Rate / MCLR < 1year 1 86,250 1,05,833
Rate based on T Bill + Spread < 1 year 1 48,200 74,400
2 1,25,016 1,38,750
2 15,000 32,500
3 30,000 57,188
4 41,667 -
4 1,78,750 53,334
1 - 2 years 1 41,050 29,400
8 60,395 60,000
2 12,500 -
12 20,000 -
4 66,667 25,000
1 - 2 years 1 1,40,000 92,917
2 - 3 years 1 25,000 29,400
2 1,92,917 96,667
2 - 12,500
4 1,92,949 1,92,084
3 12,500 -
8 60,395 60,000
4 50,000 -
12 20,000 -
3 - 4 years 1 - -
2 - 3 years 1 33,333 1,30,000
4 - 5 years 3 - -
2 1,22,500 2,48,751
Fixed Rate < 1year 1 51,000 -
4 1,61,699 79,582
2 16,000 12,200
8 60,395 60,000
4 40,400 28,000
12 20,000 -
1 20,000 -
3 - 4 years 1 10,000 8,333
1 - 2 years 2 10,000 6,000
2 80,000 1,63,334
4 39,400 40,400
4 1,41,699 60,000
2 43,300 -
6 7,796 -
2 - 3 years 4 24,400 39,400
8 - 60,000
3 - 4 years 2 55,400 -
12 20,000 -
4 - 24,400
4 - 5 years 1 5,000 21,665
4 - 5 years 2 43,400 12,100
2 - 90,000
3Months Repo < 1year 1 42,500 -
3 57,441 -
2 15,000 -
4 25,111 40,000
3 3,333 -
7 - 9,375
4 82,976 18,000
9 15,000 -
8 36,000 -
> 5 Years 1 - 5,000
12 83,333 -
Base Rate/ MCLR + spread (0.05% to 0.92%) < 1year 1 3,85,000 3,37,500
1 - 2 years 1 8,333 30,000
2 - -
2 15,000 -
3 50,000 -
3 3,333 -
4 - 80,000
4 49,643 -
1 - 2 years 1 35,000 4,92,500
8 36,000 36,000
2 30,000 -
12 83,333 -
3 50,000 18,750
1 8,333 -
4 - 72,500
2 - 3 years 2 15,000 -
6 - 12,500
3 3,334 -
2 - 3 years 1 70,000 18,750
125 126
18.2 Details of term loans - Contractual principal repayment value (Contd.) 18.3 Loan repayable on demand represents cash credit and overdraft facilities
` in lakhs
` in lakhs
Rate of Interest Maturity Instalments Amount outstanding March 31,2021 March 31, 2020
March 31,2021 March 31,2020 Note : 19 SUBORDINATED LIABILITIES (at amortised cost)
4 49,643 - Perpetual Debt - Unsecured 1,48,920 1,49,597
6 41,667 - Subordinated Debt - Unsecured
8 - 36,000
a) Rupee Denominated Bonds
40,684 40,677
3 - 4 years 1 10,119 -
3 3,750 - b) Other Subordinated Debts
2,29,402 2,50,278
4 37,500 - Total 4,19,006 4,40,552
Total 38,50,660 35,98,513
i) All Subordinated liabilities have been contracted in India except for Rupee denominated bonds.
USD 2Y MIBOR + Spread < 1year 1 - 4,000
ii) The Company has not defaulted in the repayment of dues to its lenders.
1-2 years 1 7,500 -
USD 3M LIBOR + Spread < 1year 2 5,202 11,668
19.1 Details of Subordinated Liabilities - Contractual principal repayment value
1-2 years 1 - -
4 20,807 - (i) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt - Redeemable at par - No put call option
2-3 years 4 20,807 -
USD 6M LIBOR + Spread < 1 year 1 - - No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest %
3 - 4 years 4 20,807 - redemption
March 31,2021 March 31,2020
4 - 5 years 4 20,807 - ₹ in lakhs ₹ in lakhs
>5 Years 9 46,815 -
400 1,00,00,000 40,000 40,000 Jan-30 9.25
USD 6M LIBOR + Spread < 1year 1 36,553 -
1-2 years 1 1,31,589 37,830 3000 10,00,000 30,000 30,000 Aug-28 9.75
2-3 years 1 - 1,36,188 5300 10,00,000 53,000 53,000 Mar-28 9.05
3 - 4 years 1 67,257 - 1500 10,00,000 15,000 15,000 Aug-27 8.53
4 - 5 years 1 - 69,607 2500 10,00,000 25,000 25,000 Jun-27 8.78 to 8.80
Total 3,78,144 2,59,293 100 10,00,000 1,000 1,000 Nov-26 9.20
150 10,00,000 1,500 1,500 Jun-24 11.00
Details of Securitised loan ` in lakhs 50 10,00,000 500 500 May-24 11.00
Rate of Interest Maturity Instalments Amount outstanding*
250 10,00,000 2,500 2,500 Apr-24 11.00
March 31,2021 March 31,2020
250 10,00,000 2,500 2,500 Mar-24 11.00
Less than 1 year 1,75,343 1,58,012
200 10,00,000 2,000 2,000 Feb-24 11.00
Fixed 1-2 year 1,09,355 1,24,382
(4.9% to 8%) 2-3 year 45,570 54,213 250 10,00,000 2,500 2,500 Jan-24 11.00
3-4 year 12,428 15,261 2000 10,00,000 20,000 20,000 Nov-23 9.08 to 9.20
4-5 year 4,451 5,593 500 10,00,000 5,000 5,000 Oct-23 9.08
more than 5 years 12,990 17,222 150 10,00,000 1,500 1,500 Sep-23 11.00
Total 3,60,137 3,74,683 600 10,00,000 6,000 6,000 Dec-22 11.05 to 11.25
Less than 1 year 6,501 6,753 3,150 10,00,000 31,500 31,500 Nov-21 10.02
Floating 1-2 year 6,925 7,928 1,000 10,00,000 10,000 10,000 Jun-21 11.30
Base Rate/ MCLR - spread 2-3 year 7,459 8,439 1,000 10,00,000 10,000 10,000 May-21 11.30
(0.75% to 2.65%) 3-4 year 7,866 9,088 100 10,00,000 - 1,000 Mar-21 11.00
4-5 year 7,832 9,411 100 10,00,000 - 1,000 Feb-21 11.00
more than 5 years 37,198 46,706 150 10,00,000 - 1,500 Oct-20 11.00
Total 73,781 88,325 500 10,00,000 - 5,000 Jul-20 10.70
* Represents amounts to be paid to the securitisation trust as per the securitisation cash flows net of amounts to be 115 10,00,000 - 1,150 May-20 11.00
received against Investment in PTC. 1,000 10,00,000 - 10,000 Apr-20 11.00
750 10,00,000 - - Dec-19 11.50
2,59,500 2,79,150
127 128
19.1 Details of Subordinated Liabilities - Contractual principal repayment value (Contd.) ` in lakhs
(ii) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt -Redeemable at premium - No put call option Particulars As at As at
March 31,2021 March 31,2020
No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹
Note : 21 PROVISIONS
redemption price ₹
March 31,2021 March 31,2020 Provision for Employee Benefits
₹ in lakhs ₹ in lakhs - Compensated Absences 6,508 5,107
150 10,00,000 1,500 1,500 Nov-23 17,57,947 7,57,947 6,508 5,107
1,500 1,500 Other Provisions
Provision for contingencies and service tax claims (Refer note 39) 4,346 3,838
Provision for expected credit loss towards undrawn commitments (Refer Note 39) 104 131
(iii) Unsecured Redeemable Non-Convertible Debentures - Perpetual debt
4,450 3,969
No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest % Total 10,958 9,076
- Perpetual# (increase by 100 bps
March 31,2021 March 31,2020 if call option is not
` in lakhs
₹ in lakhs ₹ in lakhs exercised on the due date)
2000 5,00,000 10,000 - Mar-31 9.25 March 31,2021 March 31,2020
900 5,00,000 4,500 - Nov-30 9.30 Note : 22 OTHER NON FINANCIAL LIABILITIES
1000 5,00,000 5,000 5,000 Dec-29 10.75 Income received in advance 1,150 1,712
1120 5,00,000 5,600 5,600 Mar-29 10.83 Statutory liabilities 2,568 1,909
5000 5,00,000 25,000 25,000 Feb-29 10.88 Others 859 955
500 5,00,000 2,500 2,500 Aug-24 12.80 Total 4,577 4,576
174 10,00,000 1,740 1,740 Jul-24 12.90
500 5,00,000 2,500 2,500 Jun-24 12.90 ` in lakhs
500 5,00,000 2,500 2,500 Feb-24 12.90
Particulars As at March 31,2021 As at March 31,2020
Nos. Amount Nos. Amount
50 10,00,000 500 500 Jan-24 12.60
Note : 23 A) EQUITY SHARE CAPITAL
1,031 10,00,000 10,310 10,310 Dec-23 12.50 to 12.60
AUTHORISED
245 10,00,000 2,450 2,450 Oct-23 12.60
Equity Shares of ₹ 2 each with voting rights 1,20,00,00,000 24,000 1,20,00,00,000 24,000
1,000 5,00,000 5,000 5,000 Oct-23 12.90
Preference Shares of ₹ 100 each 5,00,00,000 50,000 5,00,00,000 50,000
300 10,00,000 3,000 3,000 Feb-23 12.80
74,000 74,000
1,450 10,00,000 14,500 14,500 Dec-22 12.70 to 12.80
ISSUED
860 5,00,000 4,300 4,300 Sep-22 12.75
Equity Shares of ₹ 2 each with voting rights 82,07,18,899 16,414 82,02,61,529 16,405
2,000 5,00,000 10,000 10,000 Aug-22 12.90
16,414 16,405
200 5,00,000 1,000 1,000 Mar-22 12.50
SUBSCRIBED AND FULLY PAID UP
700 5,00,000 3,500 3,500 Jan-22 12.50
Equity Shares of ₹ 2 each with voting rights 82,00,35,129 16,400 81,95,77,759 16,391
3,500 5,00,000 17,500 17,500 Dec-21 12.50 to 12.95
Add : Forfeited Shares 6,54,500 7 6,54,500 7
320 5,00,000 1,600 1,600 Aug-21 12.50
16,407 16,398
413 5,00,000 2,065 2,065 Jul-21 12.50
2,021 5,00,000 10,105 10,105 Jun-21 12.50
3,000 5,00,000 - 15,000 Oct-20 12.05 a) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year:
` in lakhs
1,45,170 1,45,670
As at March 31,2021 As at March 31,2020
# Company can redeem using Call option on the maturity date with prior approval of RBI. ` in lakhs Nos. Amount Nos. Amount
Particulars As at As at Equity Shares

March 31,2021 March 31,2020 At the beginning of the period/year (₹10/- each) 81,95,77,759 16,391 15,63,59,113 15,636
Note : 20 OTHER FINANCIAL LIABILITIES Additional shares pursuant to share split - - 62,54,36,452 -
Unpaid dividend 74 73 Issued during the year
Advance from customers 5,239 1,758 a) Qualified institutional Placement - - 2,81,25,000 563
Security deposits received 80 216 b) Preferential Issue to Holding Company - - 93,45,794 187
Collections towards derecognised assets pending remittance 18,928 15,955 c) Employees Stock Option (ESOP) Scheme 4,57,370 9 3,11,400 5
Lease liability (Refer note 48) 8,905 12,042 Outstanding at the end of the period/ year - ₹2/- each 82,00,35,129 16,400 81,95,77,759 16,391
Other liabilities 15,991 8,577 Forfeited shares
Total 49,217 38,621 Equity Shares - Amount originally paid up 6,54,500 7 6,54,500 7
129 130
Note : 23 A) EQUITY SHARE CAPITAL (Contd.) Note : 23 B) OTHER EQUITY (Contd.) ` in lakhs
a) Terms/rights attached to Equity shares
March 31,2021 March 31,2020
The Company has only one class of equity shares having a par value of ₹ 2 (March 2019 -₹10)per share. All these shares have the same General Reserve (Refer Note e)
rights and preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the Board Balance at the beginning of the year 2,98,777 2,48,777
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except for interim dividend.
Add: Amount transferred from Share Based Payment Reserve 136 -
Repayment of capital will be in proportion to the number of equity shares held. Add: Amount transferred from retained earnings 75,000 50,000
b) Equity Shares held by Holding Company Closing balance at the end of the year 3,73,913 2,98,777
Share Based Payments Reserve (Refer Note f)
As at As at
Balance at the beginning of the year 3,017 1,861
March 31,2021 March 31,2020
Addition during the year 564 1,156
Cholamandalam Financial Holdings Limited 37,28,85,889 37,28,85,889 Transfer to General reserve (136) -
(formerly known as "TI Financial Holdings Limited" )- Holding Company
Closing balance at the end of the year 3,445 3,017
Retained Earnings (Refer Note g)
c) Details of shareholding more than 5% shares in the Company Balance at the beginning of the year 89,281 76,450
` in lakhs
Equity Shares
As at March 31,2021 As at March 31,2020 Profit for the year 1,51,491 1,05,237
Nos. % holding Nos. % holding Less:
in the class in the class Dividend
Cholamandalam Financial Holdings Limited 37,28,85,889 45.47 37,28,85,889 45.50 Equity - Final - (8,798)
- Holding Company Equity - Interim (10,656) (7,819)
Distribution tax on Equity Dividend - (3,415)
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders Transfer to Statutory Reserve (31,000) (22,000)
regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares. Transfer to General Reserve (75,000) (50,000)
Re-measurement Gain / (Loss) on Defined Benefit Obligations (Net) transferred to Retained Earnings (95) (374)
d) Issue of Shares on preferential basis and Qualified institutional placements Closing balance at the end of the year 1,24,021 89,281
On January 31, 2020 the Company alloted 2,81,25,000 equity shares of ₹ 2 each at a premium of ₹ 318 per share agregating to Cash flow hedge reserve (Refer Note h)
₹ 90,000 lakhs to eligbile investors through Qualified institutional placement. Balance at the beginning of the year (7,198) (1,227)
Addition (3,383) (5,971)
On March 9, 2020 the Company alloted 93,45,794 equity shares of ₹ 2 each at a premium of ₹ 319 per share agregating to Closing balance at the end of the year (10,581) (7,198)
₹ 30,000 lakhs to the holding company under on a preferential basis. FVOCI Reserve (Refer Note i)
` in lakhs Balance at the beginning of the year (129) (129)
Particulars As at As at Addition - -
March 31,2021 March 31,2020 Closing balance at the end of the year (129) (129)
Note : 23 B) OTHER EQUITY Share Application Money pending Allotment at the end of the year (Refer Note j) - 10
Statutory Reserve (Refer Note a) Total Other Equity 9,39,624 8,00,786
Balance at the beginning of the year 1,28,046 1,06,046 a) Statutory reserve represents the reserve created as per Section 45IC of the RBI Act, 1934, pursuant to which a Non-Banking
Add: Amount transferred from retained earnings 31,000 22,000 Financial Company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit annually
Closing balance at the end of the year 1,59,046 1,28,046 as disclosed in the Statement of Profit and Loss account, before any dividend is declared.
b) Capital reserve represents the reserve created on account of amalgamation of Chola Factoring Limited in the year 2013-14.
Capital Reserve (Refer Note b) c) Capital redemption reserve represents the amount equal to the nominal value of shares that were redeemed during the prior years.
Balance at the beginning of the year 4 4 The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Add: Changes during the year - - Companies Act, 2013
Closing balance at the end of the year 4 4 d) Securities premium reserve is used to record the premium on issue of shares. The premium received during the period represents
Capital Redemption Reserve (Refer Note c) the premium received towards allotment of 4,57,370 shares. The reserve can be utilized only for limited purposes such as issuance of
Balance at the beginning of the year 3,300 3,300 bonus shares, buy back of its own shares and securities in accordance with the provisions of the Companies Act, 2013.
Add: Changes during the year - - e) The general reserve is a free reserve, retained from Company’s profits and can be utilized upon fulfilling certain conditions in
Closing balance at the end of the year 3,300 3,300 accordance with specific requirement of Companies Act, 2013.
Securities Premium Account (Refer Note d)
f ) Under IND AS 102, fair value of the options granted is required to be accounted as expense over the life of the vesting period as
Balance at the beginning of the year 2,85,678 1,66,849 employee compensation costs, reflecting the period of receipt of service.
Add: Premium on issue of shares on preferential basis (Refer note 23A) - 29,813
g) The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial
Add: Premium on issue of shares on Qualified Institutional placement) (Refer note 23A) - 89,438
position of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported in retained
Add: Premium on ESOPs exercised 927 499 earnings are not distributable in entirety.
Less: Share issue expenses - (921)
h) Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging
Closing balance at the end of the year 2,86,605 2,85,678
instruments entered into for cash flow hedges, which shall be reclassified to profit or loss only when the hedged transaction affects
the profit or loss, or included as a basis adjustment to the non-financial hedged item, consistent with the Company accounting
policies.
131 132
Note : 23 B) OTHER EQUITY (Contd.) Note : 24 REVENUE FROM OPERATIONS (Contd.)
i) FVOCI Reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value b) Movement in Contract liability during the period as follows ` in lakhs
through Other Comprehensive Income. Particulars Year ended Year ended
j) Share application money pending allotment as at March 31, 2020 represents amount received towards 5,000 equity shares of the March 31,2021 March 31,2020
Company pursuant to ESOP scheme and have been subsequently allotted. Contract liability at the beginning of the period 1,641 2,241
Proposed dividend Revenue Recognised during the period 600 600
The Board of Directors of the Company have recommended a final dividend of 35% being ₹ 0.70 per share on the equity shares of the Contract liability at the end of the period 1,041 1,641
Company, for the year ended March 31, 2021 ( ₹ Nil per share - March 31, 2020) which is subject to approval of shareholders. Consequently
c) Total Revenue from Customer ` in lakhs
the proposed dividend has not been recognised in the books in accordance with IND AS 10.
Particulars Year ended Year ended
` in lakhs March 31,2021 March 31,2020
Particulars Year ended Year ended Total Revenue from contracts with Customer* 28,722 26,557
March 31,2021 March 31,2020
*Represents fee income (note 24B) and sale of services (note 24D)
REVENUE FROM OPERATIONS
d) Due to Company’s nature of business and the type of contracts entered with the customers, there is no difference between the amount
Note : 24A
(i) Interest - on financial assets measured at amortised cost of revenue recognized in the statement of profit and loss and the contracted price.
(a) Loans e) Impairment recognised for Contract asset is Nil (Nil - March 31, 2020)
- Bills Discounting 766 721 f) Performance Obligation:
- Term loans 8,86,956 7,83,449 - Servicing and Collection fee on Assignment: to collect the receivable from the customer and transfer the same to the assignee
(b) Bank Deposits representative.
- under lien 2,147 3,845 - Other Service Income: To enable space for advertising at the branches and other related services.
- free of lien 26,947 20,440 g) There are no significant return / refund / other obligations for any of the above mentioned services.
(C) Others
- Deposits with Financial Institutions 2,299 3,961 ` in lakhs
- Investment in Government Securities 3,301 - Particulars Year ended Year ended
March 31,2021 March 31,2020
Total (A) 9,22,416 8,12,416
Note : 24B Note : 25 OTHER INCOME
(i) Fee Income* Interest on Income tax refund 336 -
-Term loans 20,685 18,987 Rent 25 17
Total (B) 20,685 18,987 Miscellaneous Income - 9
*Services are rendered at a point in time Total 361 26
Note : 24C
Net gain on fair value changes on FVTPL - Realised
` in lakhs
Investment in mutual funds 463 1,563 Particulars Year ended Year ended
Total (C) 463 1,563 March 31,2021 March 31,2020
Note : 24D
Note : 26 FINANCE COST
(i )Sale of Services
Interest on financial liabilities measured at amortised cost
(a) Servicing and Collection fee on Assignment 691 485
- Debt securities 74,325 1,01,821
(b) Other Service Income 7,346 7,085
Total (D) 8,037 7,570 - Borrowings other than debt securities 3,37,970 3,12,331
Note: Timing of revenue recognition - Subordinated liabilities 42,835 42,567
Services rendered at a point in time 7,437 6,970 Others
Services rendered over a time 600 600 - Bank charges 1,537 1,351
Total 8,037 7,570 - Interest on lease liability 924 1,153
Total 4,57,591 4,59,223
` in lakhs
Details related to services rendered over a time Particulars Year ended Year ended
a) Contract balances March 31,2021 March 31,2020
` in lakhs
Particulars As at As at Note : 27 IMPAIRMENT OF FINANCIAL INSTRUMENTS
March 31,2021 March 31,2020 Loss Assets Written Off (Net) / disposal of re-possessed assets* 40,066 30,427
Contract Liability 1,041 1,641 Impairment provision- Loans - measured at amortised cost 92,117 59,306
Total 1,32,183 89,733
Contract liability relates to payments received in advance of performance under the contract. Contract liability is recognised as revenue
as (or when) we perform under the contract. * Includes Loss on disposal of repossessed vehicles - ` 27,211 lakhs for the year ended March 31, 2021 ( ` 31,314 lakhs - March 31, 2020)
133 134
` in lakhs Note : 30
Particulars Year ended Year ended a) Earnings per share
March 31,2021 March 31,2020 Particulars Year ended Year ended
Note : 28 EMPLOYEE BENEFITS EXPENSE March 31,2021 March 31,2020
Salaries, bonus and commission 69,341 58,419 Profit After Tax (₹ in lakhs) 1,51,491 1,05,237
Contribution to provident and other funds Preference Dividend Paid (including tax thereon) (₹ in lakhs) - -
-Employees' provident fund 2,953 2,849 Profit After Tax Attributable to Equity Shareholders (₹ in lakhs) 1,51,491 1,05,237
-Superannuation fund 337 333 Weighted Average Number of Equity Shares (Basic) 81,96,69,366 78,71,82,549
Share based payment Expense 561 1,153 Add: Dilutive effect relating to ESOP 14,30,020 8,80,135
Gratuity expense (Refer note 35) 1,117 962 Weighted Average Number of Equity Shares (Diluted) 82,10,99,386 78,80,62,834
Staff welfare expenses 627 1,784 Earnings per Share - Basic (₹) 18.48 13.37
Total 74,936 65,500 Earnings per Share - Diluted (₹) 18.45 13.35
Face Value Per Share (₹) 2.00 2.00
Note:
` in lakhs Earnings per Share calculations are done in accordance with Ind AS 33 "Earnings per Share".
March 31,2021 March 31,2020
b) Income tax reconciliation
The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been charged at India
Note : 29 OTHER EXPENSES
corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India's domestic tax rate for the years
Rent and facility charges 734 1,262
ended 31 March 2021 and 2020 is, as follows:
Rates and taxes 2,047 1,114
Energy cost 1,011 1,421 ` in lakhs
Repairs and maintenance 400 426 Particulars Year ended Year ended
March 31,2021 March 31,2020
Communication costs 2,772 3,050
Accounting profit before tax from continuing operations 2,03,844 1,58,573
Printing and stationery 1,233 1,456
Income tax rate of 25.17% (31 March 2020: 25.17%) 51,308 39,913
Advertisement and publicity expenses 1,267 1,454
Effects of:
Directors fees, allowances and expenses 109 86
Impact of difference in tax base for Donations and CSR Expense 813 324
Auditors' remuneration (Refer note 32) 80 151
Share based payment expense – No deduction claimed under tax 141 290
Legal and professional charges 4,083 4,457 Impact Deduction u/s 80JJA (28) (19)
Insurance 1,591 1,534 Other Adjustments 119 (17)
Travelling and conveyance 2,641 5,625 Impact of changes to the enacted rate on opening Deferred tax asset - 12,845
Information technology expenses 3,243 2,424 Income tax expense reported in statement of profit and loss 52,353 53,336
Loss on sale of property, plant and equipment(Net) 54 13
Recovery charges 26,657 28,959 The effective income tax rate for 31 March, 2021 is 25.17% (31 March, 2020: 25.17%)
Corporate social responsibility expenditure (Refer note 29.1) 3,207 2,888 Note : 31 TRANSFER OF FINANCIAL ASSETS
Outsource cost 22,417 23,976
Miscellaneous expenses (Refer note 29.2) 289 1,443 31.1 Transferred financial assets that are not derecognised in their entirety
73,835 81,739 The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred
Less : Expenses recovered (257) (233) financial assets do not qualify for derecognition, together with the associated liabilities:
Total 73,578 81,506
A) Securitisation
` in lakhs The Company has Securitised certain loans, however the Company has not transferred substantially all risks and rewards, hence these
Particulars Year ended Year ended assets have not been de-recognised in its entirety.
March 31,2021 March 31,2020 ` in lakhs
29.1 Details of CSR expenditure Particulars As at As at
March 31,2021 March 31,2020
Gross Amount required to be spent towards CSR u/s 135 (5) of Companies Act , 2013 (A) 3,207 2,887
Securitisations
Amount spent during the year (B)
Carrying amount of transferred assets measured at amortised cost 4,75,242 4,92,803
(a) Construction/ acquisition of asset - -
Carrying amount of associated liabilities (Debt securities - measured at amortised cost) 4,63,916 4,63,131
(b) Others 3,207 2,888
Fair value of assets 4,76,131 4,85,991
Excess/(shortfall) (A-B) - -
Fair value of associated liabilities 4,37,374 4,65,551
None of the CSR projects undertaken by the Company has been fall under definition of "On-going Projects"
Net position at Fair Value 38,757 20,440
There is no amount required to be contributed to specified fund u/s 135(6)
29.2 Donation to Electoral Trust - 500
135 136
B) Direct bilateral assignment Note: 34 a) EXPENDITURE IN FOREIGN CURRENCIES
` in lakhs
The Company has transferred certain loans (measured at amortised cost) by way of direct bilateral assignment, as a source of finance. Particulars Year ended Year ended
As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the buyer, the assets have March 31,2021 March 31,2020
been de-recognised from the Company’s balance sheet. Travel - 3
Membership fees 3 3
The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain/(loss) on
Interest on borrowings 12,166 9,837
derecognition, per type of asset.
License fees 173 53
` in lakhs
Particulars As at As at Professional charges 547 349
March 31,2021 March 31,2020
34 b) REMITTANCES IN FOREIGN CURRENCIES
Assignment ` in lakhs
Carrying amount of de-recognised financial asset 4,16,042 5,12,585 Particulars Year ended Year ended
March 31,2021 March 31,2020
Carrying amount of Retained Assets at amortised cost 47,502 55,789
Purchase of Computer Equipment 265 1,112
` in lakhs Borrowing origination costs 1,468 2,695
c) There is no dividend paid in foreign currency.
March 31,2021 March 31,2020
Assignment Note : 35 RETIREMENT BENEFIT
Gain on sale of the de-recognised financial asset - 24,727
A) Defined contribution plan
31.2 Transferred financial assets that are derecognised in their entirety but where the Company has continuing involvement A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and where there is no legal
The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have continuing or constructive obligation to pay further contributions. During the year, the Company recognised ` 2,953 lakhs (Previous Year - ` 2,849 lakhs)
involvement. to Provident Fund under Defined Contribution Plan, ` 337 lakhs (Previous Year - ` 333 lakhs) for Contributions to Superannuation Fund and
` in lakhs ` 49 lakhs (Previous Year - ` 106 lakhs) for Contributions to Employee State Insurance Scheme in the Statement of Profit and Loss.
B) Gratuity
March 31,2021 March 31,2020
Note : 32 AUDITORS’ REMUNERATION The Company’s defined benefit gratuity plan requires contributions to be made to a separately administered fund. The gratuity plan is
Statutory Audit 47 47 funded with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act,
Audit of Interim financial statements - 40 employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s
Limited Review 16 10 length of service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the
Tax Audit 5 4 statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans :
Other Services 5 34 Change in Defined Benefit Obligation and Fair value of Plan assets:
Reimbursement of Expenses(incl. input tax credit expensed) 7 16 ` in lakhs
Total 80 151
March 31,2021 March 31,2020
Other services not covered in auditor remuneration in the statement of Profit and Loss
Defined Benefit Obligation at the beginning of the year 5,989 4,457
Fees paid for services in connection with Qualified institutional placement and preferential allotment - 160
Current Service Cost 1,026 891
Reimbursement of Expenses - 14 Interest Cost 386 326
Remeasurement Losses/(Gains)
Note : 33 MICRO, SMALL & MEDIUM ENTERPRISES a. Effect of changes in financial assumptions 90 312
Based on and to the extent of the information received by the Company from the suppliers during the year regarding their status under b. Effect of experience adjustments 36 165
the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, there are no amounts due c. Changes in demographic assumptions - -
to MSME as at 31 March 2021 and as at 31 March 2020. Benefits Paid (224) (162)
Transfer in/out - -
The relevant particulars are furnished below:
` in lakhs Defined Benefit Obligation at the end of the year 7,303 5,989
Particulars As at As at Change in Fair value of Plan Assets
March 31,2021 March 31,2020 Fair Value of Plan Assets at the Beginning of the Year 4,575 3,481
Principal amount due to suppliers under MSMED Act, as at the year end - 70 Expected Returns on Plan Assets 295 255
Interest accrued and due to suppliers under MSMED Act, on the above amount as at the year end - - Employer’s Contribution 664 1,023
Payment made to suppliers (other than interest) beyond the appointed day, during the year - - Benefits Paid (224) (162)
Return on plan assets (excluding interest income) - (22)
Interest paid to suppliers under MSMED Act (other than Section 16) - -
Transfer in/out - -
Interest paid to suppliers under MSMED Act (Section 16) - -
Fair Value of Plan Assets at the end of the year 5,310 4,575
Interest due and payable to suppliers under MSMED Act, for payments already made - -
Interest accrued and remaining unpaid at the year end to suppliers under MSMED Act - -
137 138
Note : 35 RETIREMENT BENEFIT (Contd.) Note: 35 RETIREMENT BENEFIT (Contd.)
` in lakhs
Particulars Year ended Year ended C) Compensated Absences
March 31,2021 March 31,2020
Amount Recognised in the Balance Sheet Assumptions March 31,2021 March 31,2020
Fair Value of Plan Assets as at the End of the Year 5,310 4,575 Discount Rate 6.25% p.a. 6.45% p.a.
Defined benefit obligation at the End of the Year (7,303) (5,989) Future salary increase 7.50% p.a. 7.50% p.a.
Amount Recognised in the Balance Sheet under Other Payables (1,993) (1,414) Attrition Rate
Cost of the Defined Benefit Plan for the Year - Senior management 13% p.a. 13% p.a.
Current Service Cost 1,026 891 - Middle management 13% p.a. 13% p.a.
Net interest Expense 386 326 - Others 13% p.a. 13% p.a.
Expected Return on Plan Assets (295) (255) Mortality Indian Assured Indian Assured
Net Cost recognized in the statement of Profit and Loss 1,117 962 Lives (2012-14) Lives (2012-14)
Remeasurement Losses/(Gains) Ultimate Ultimate
a) Effect of changes in financial assumptions 90 312
b) Effect of experience adjustments 36 165 Notes:
c) Changes in demographic assumptions - - 1. The Company has not funded its Compensated Absences liability and the same continues to remain as unfunded as at March 31, 2021.
d) Return on plan assets (excluding interest income) - 22 2. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
Net cost recognized in Other Comprehensive Income 126 499
3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
Assumptions term of the obligation.
Discount Rate 6.25% p.a. 6.45% p.a.
Future salary increase 7.50% p.a. 7.50% p.a.
Note : 36 SEGMENT INFORMATION
Attrition Rate
- Senior management 13% p.a. 13% p.a. The Company is primarily engaged in the business of financing. All the activities of the Company revolve around the main business.
- Middle management 13% p.a. 13% p.a. Further, the Company does not have any separate geographic segments other than India
- Others 13% p.a. 13% p.a. During year ending 31 March 2021, For management purposes, the Company has been organised into three operating segments based
Expected rate of return on Plan Assets 7.50% p.a. 7.50% p.a. on products and services, as follows
Mortality Indian Assured Indian Assured
Vehicle Finance Loans - Loans to customers against purchase of new/used vehicles, tractors, construction equipment and loan to
Lives (2012-14) Lives (2012-14)
automobile dealers.
Ultimate Ultimate
Maturity profile of Defined Benefit Obligations Loan against property - Loans to customer against immovable property
Weighted average duration (Based on discounted cash flows) 6 years 6 years Home Loans - loans given for acquisition of residential property
Expected Cash flows over the next (valued on undiscounted basis) Other loans - This includes, loan against shares and other unsecured loans
Within the next 12 months (next annual reporting period) 964 643
The Chief Operating Decision Maker (CODM) monitors the operating results of its business units separately for making decisions about
Between 2 and 5 years 3,478 2,937
Between 5 and 10 years 3,277 2,782 resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured
Beyond 10 Years 3,805 3,363 consistently with operating profits or losses in the financial statements. However, income taxes are managed on a entity as whole basis
Total Expected Cash flows 11,524 9,725 and are not allocated to operating segments.
` in lakhs
Sensitivity Analysis: Year ended March 31, 2021
` in lakhs Particulars Vehicle Loan against Home Loans Others Unallocable Total
Particulars March 31,2021 March 31,2020 finance property
Increase Decrease Increase Decrease
Sensitivity Analysis: Revenue from Operations
Discount Rate (+/- 1%) 6,869 7,787 5,623 6,394 - Interest Income 6,93,467 1,44,319 46,679 3,229 34,722 9,22,416
Salary Growth Rate (+/- 1%) 7,728 6,906 6,347 5,652 - Net gain on derecognition of financial instruments
Attrition Rate (+/- 50% of attrition rates) 7,117 7,576 5,787 6,253 under amortised cost category - - - - - -
Mortality Rate (+/- 10% of mortality rates) 7,303 7,303 5,988 5,988 - Fee Income 18,224 2,180 181 89 11 20,685
- Net gain on Fair value change on - - - 463 463
Notes: financial instrument
1. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors. - Sale of Services 7,096 540 401 - - 8,037
2. The Company’s best estimate of contribution during the next year is ₹ 3,034 lakhs.
- Others - - - - - -
3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated Segment revenue from Operations (I) 7,18,787 1,47,039 47,261 3,318 35,196 9,51,601
term of the obligation. Other income (II) - - - - 361 361
4. The entire Plan Assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC). Total Segment Income - (I) + (II) 7,18,787 1,47,039 47,261 3,318 35,557 9,51,962
139 140
Note : 36 SEGMENT INFORMATION (Contd.) Note : 36 SEGMENT INFORMATION (Contd.)
Year ended March 31, 2021 Particulars Vehicle Loan against Home Loans Others Unallocable Total
Particulars Vehicle Loan against Home Loans Others Unallocable Total finance property
finance property
As on March 31, 2021
Expenses
Segment Assets 48,93,657 12,71,552 3,72,558 45,828 65,83,595
- Finance costs 3,50,978 84,871 20,670 2,493 (1,421) 4,57,591
Unallocable Assets 8,71,247 8,71,247
- Impairment of financial Instruments 1,12,792 14,560 5,479 (645) (3) 1,32,183
Total Assets 74,54,842
- Employee benefits expense 61,328 7,692 4,971 695 250 74,936
Segment Liabilities 42,66,080 11,08,484 3,24,780 39,951 57,39,295
- Depreciation and amortisation expense 8,388 1,039 371 32 - 9,830
Unallocable Liabilities 7,59,516 7,59,516
- Other expenses 61,102 4,940 3,591 165 3,780 73,578
Total Liabilities
64,98,811
Segment Expenses 5,94,588 1,13,102 35,082 2,740 2,606 7,48,118
Segment Profit / (loss) before taxation 1,24,199 33,937 12,179 578 32,951 2,03,844
Segment Assets 42,15,030 10,53,555 2,44,892 25,758 55,39,235
- Tax expense 52,353
Unallocable Assets 8,61,004 8,61,004
Profit for the year 1,51,491
Total Assets 64,00,239
Segment Liabilities 36,76,874 9,19,037 2,13,624 22,469 48,31,984
` in lakhs Unallocable Liabilities 7,51,071 7,51,071
Year ended March 31, 2020
Total Liabilities
55,83,055
Particulars Vehicle Loan against Home Loans Others Unallocable Total
finance property
In computing the segment information, certain estimates and assumptions have been made by the Management, which have been relied upon.
Revenue from Operations As the assets are allocated to segment based on certain assumptions, hence additions to the Property, plant and equipment have not been
- Interest Income 6,26,829 1,25,291 29,545 2,438 28,313 8,12,416 disclosed separately for each specific segment.
- Net gain on derecognition of financial instruments 9,303 6,180 9,244 - - 24,727 There are no revenue from transactions with a single external customer or counter party which amounted to 10% or more of the Company's total
revenue in the Current year and Previous year.
under amortised cost category
- Fee Income 16,722 2,003 182 35 44 18,986 Note : 37 RELATED PARTY DISCLOSURES
- Net gain on Fair value change on financial - - - - 1,564 1,564
List of Related Parties:
instrument
l Holding Company: Cholamandalam Financial Holdings Limited (formerly known as TI Financial Holdings Limited)
- Sale of Services 6,560 731 278 1 - 7,570
l Entity having significant influence over holding Company: Ambadi Investments Limited
Segment revenue from Operations (I) 6,59,414 1,34,205 39,249 2,474 29,921 8,65,263
l Subsidiaries of the entity which has significant influence over holding Company: Parry Enterprises Limited and Parry Agro Limited.
- Other income (II) - - - - 26 26
l Fellow Subsidiaries: Cholamandalam MS General Insurance Company Limited, Cholamandalam Health Insurance Limited
Total Segment Income - (I) + (II) 6,59,414 1,34,205 39,249 2,474 29,947 8,65,289
l Joint Venture of Holding Company: Cholamandalam MS Risk services Limited
Expenses l Subsidiaries: Cholamandalam Securities Limited, Cholamandalam Home Finance Limited
- Finance costs 3,47,457 79,477 16,772 1,528 13,989 4,59,223 l Associate : White Data Systems India Private Limited, Vishvakarma Payments Private Limited (From 30 March, 2021)
- Impairment of Financial Instruments 77,581 9,591 2,162 (336) 735 89,733 l Key Managerial Personnel:
- Employee benefits expense 54,205 6,916 3,781 394 204 65,500 a. Mr. Arun Alagappan, Managing Director (upto February 14, 2021)
- Depreciation and amortisation expense 9,068 992 271 49 374 10,754 b. Mr. D. Arul Selvan, Chief Financial Officer
- Other expenses 68,481 5,610 3,068 502 3,845 81,506 c. Ms. P. Sujatha, Company Secretary
Segment Expenses 5,56,792 1,02,586 26,054 2,137 19,147 7,06,716 d. Mr. Ravindra Kumar Kundu, Executive Director (From January 23, 2020)
Segment Profit / (loss) before taxation 1,02,622 31,619 13,195 337 10,800 1,58,573 l Non-Executive Directors
Tax expense 53,336 a) Ms. Bharati Rao (up to July 30, 2019)
Profit for the year 1,05,237 b) Mr. Ashok Kumar Barat
c) Mr. M.M. Murugappan (upto November 11, 2020)
d) Mr. N. Ramesh Rajan
e) Mr. Rohan Verma
f ) Ms. Bhama Krishnamurthy (From July 30, 2019)
g) Mr. Vellayan Subbiah (From November 11, 2020)
h) Mr. M.A.M. Arunachalam (From January 29,2021)
i) Mr. Anand Kumar (From March 16, 2021)
j) Mr. Bharath Vasudevan (From March 16, 2021)
Note: Related party relationships are as identified by the Management and relied upon by the Auditors
141 142
Note : 37 RELATED PARTY DISCLOSURES (Contd.) Note : 37 RELATED PARTY DISCLOSURES (Contd.)
a) Transactions during the year e) Balances Outstanding at the year end.
Particulars Year ended Year ended Particulars As at As at
Dividend Payments (Equity Shares) Loans - Receivable
a) Cholamandalam Financial Holdings Limited 4,848 7,634 a) Cholamandalam Securities Limited - 700
b) Ambadi Investments Limited 438 708 b) White Data Systems India Private Limited 340 340
Debt Securities – Payable
c) Parry Enterprises Limited 0* 0*
a) Cholamandalam MS General Insurance Company Limited (18,527) (19,070)
Amount received towards reimbursement of expenses
Other Receivable / (Payable)
a) Cholamandalam Financial Holdings Limited 104 100
a) Cholamandalam Financial Holdings Limited 2 -
b) Cholamandalam Securities Limited 213 162 b) Cholamandalam Securities Limited (5) 1
c) Cholamandalam Home Finance Limited 3,544 3,898 c) Cholamandalam Home Finance Limited 272 140
d) Cholamandalam MS General Insurance Company Limited 5 60 d) Cholamandalam MS General Insurance Company Limited 1 16
e) Parry Enterprises Limited 1 1 e) White Data Systems India Private Limited (6) (7)
f ) Cholamandalam MS Risk Services Limited 0* 0* f ) Parry Enterprises Limited 0* 1
Expenses – Reimbursed g) Cholamandalam MS Risk Services Limited - 0*
a) Cholamandalam Securities Limited - 15 h) Key Managerial Personnel - 2
b) Cholamandalam MS General Insurance Company Limited - 2 f) Remuneration to Key Managerial Personnel
` in lakhs
c) Cholamandalam Home Finance Limited 157 77
Nature of Transaction Year ended Year ended
Services Received March 31,2021 March 31,2020
a) Cholamandalam Securities Limited 15 3 Short- term employee benefits 794 656
b) White Data Systems India Private Limited 29 32 Post - employment pension (defined Contribution) 92 66
c) Parry Enterprises Limited 72 714 Dividend Payments 17 24
d) Cholamandalam MS General Insurance Company Limited 196 164 Share based payments 27 48
Amount received towards other Reimbursements Sale of Vehicle(s) 21 -
a) Cholamandalam Securities Limited 1 - * Represents amounts less than ₹ 1 lakh
Rental Income Disclosure pursuant to Schedule V of Clause A.2 of Regulation 34 (3) and Regulation 53(f) of the SEBI (Listing Obligations and Disclosure
a) Cholamandalam Securities Limited 8 9 Requirements) Regulations, 2015.
Rental Expense I. Disclosures relating Loans and Advances /Investments ` in lakhs
a) Cholamandalam Home Finance Limited 126 90 Sl. Loans and Advances in the nature of Loans Maximum Amount Maximum Amount
Loans given No. Outstanding during Outstanding during
year March 2021 year March 2020
a) Cholamandalam Securities Limited 1,600 17,650
b) White Data Systems India Private Limited 340 340 A) To Subsidiaries
Loans recovered - Cholamandalam Securities Limited 700 2,500
- Cholamandalam Home Finance Limited 2,870 2,200
a) Cholamandalam Securities Limited 2,300 18,100
B) To Associates
b) White Data Systems India Private Limited 340 340
- White Data Systems India Private Limited 340 340
Interest Income Received
a) Cholamandalam Securities Limited 1 37 II. Cholamandalam Financial Holdings Limited (CFHL), promoter-group company holds 46% of equity shares of the company. Disclosure relating
b) White Data Systems India Private Limited 26 28 to transactions with CFHL is given above.
Loans availed Note : 38 CONTINGENT LIABILITIES AND COMMITMENTS
a) Cholamandalam Home Finance Limited 22,820 25,050 (a) Contested Claims not provided for: ` in lakhs
Loans repaid Particulars As at As at
a) Cholamandalam Home Finance Limited 22,820 25,050 March 31,2021 March 31,2020
Interest Expense Income tax and Interest on Tax issues where the Company has gone on appeal 22,465 23,104
a) Cholamandalam Home Finance Limited 80 95 Decided in the Company’s favour by Appellate Authorities and for which the 21,898 21,898
b) Cholamandalam MS General Insurance Company Limited 1,603 1,696 Department is on further appeal with respect to Income Tax
Sales Tax issues pending before Appellate Authorities in respect of which the Company is on appeal. 2,573 2,660
Commission and Sitting fees to non-executive Directors 100 80
Service Tax & GST issues pending before Appellate Authorities 19,992 19,978
in respect of which the Company is on appeal.
Disputed claims against the Company lodged by various parties under litigation 10,801 8,526
(to the extent quantifiable)
143 144
Note : 38 CONTINGENT LIABILITIES AND COMMITMENTS (Contd.) Note : 40 ESOP DISCLOSURE (Contd.)
i) The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals / defence. The movement in Stock Options during the current period are given below:
ii) It is not practicable for the Company to estimate the timings of the cashflows, if any, in respect of the above pending resolution of the
Employee Stock Option Plan 2007
respective proceedings.
iii) The Company does not expect any reimbursement in respect of the above contingent liabilities. Options Options Options
Options
iv) Future Cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various forums/ outstanding During the Year vested unvested
outstanding
authorities. but not
exercised
(b) Commitments ` in lakhs Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
Particulars As at As at Grant 31.03.2020 in number Granted Forfeited Exercised 31.03.2021 31.03.2021 31.03.2021 Price Average
March 31,2021 March 31,2020 of options / Expired and ` Remaining
on account allotted Contractual
Capital commitments 3,650 2,766 of share split* Life
Disbursements - Undrawn lines 1,24,190 84,535 GT25 25 Apr 08 - - - - - - - - - -
(c) The Code on Social Security, 2020 (‘ The Code’) relating to employee benefits during employment and post-employment benefits, Apr 2008
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which GT27 27 Jan 11 23,120 - - - 23,120 - - - 38 -
the Code will come into effect has not been notified. The Ministry of Labour and Employment has also released draft rules thereunder JAN 2011A
on 13 November 2020 and has invited suggestions from stakeholders, which are under consideration by the Ministry. The Company GT27 27 Jan 11 - - - - - - - - - -
JAN 2011B
will evaluate the rules, assess the impact, if any, and account for the same once the rules are notified and become effective.
GT30 30 Apr 11 25,240 - - - 15,000 10,240 10,240 - 33 -
Note : 39 CHANGES IN PROVISIONS APR 2011
` in lakhs
Particulars As at Additional Utilisation/ As at GT27 27 Oct 11 29,760 - - - 21,180 8,580 8,580 - 31 -
March 31,2020 Provision Reversal March 31,2021 OCT 2011
Provision for Contingencies and Service Tax claims 3,838 508 - 4,346 Total 78,120 - - - 59,300 18,820 18,820 - - -
Provision for Undrawn commitments 131 89 116 104
` in lakhs
Particulars As at Additional Utilisation/ As at Options Options Options
Options
March 31,2019 Provision Reversal March 31,2020 outstanding During the Year vested unvested
outstanding
2019-20 but not
Provision for Contingencies and Service Tax claims 3,837 1 - 3,838 exercised
Provision for Undrawn commitments 51 80 - 131 Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
Grant 31.03.2020 in number Granted Forfeited Exercised 31.03.2021 31.03.2021 31.03.2021 Price Average
Undrawn loan commitments are commitments under which the Company is required to provide a loan under pre-sanctioned terms to the of options / Expired and Remaining
customer. on account allotted Contractual
The undrawn commitments provided by the Company are predominantly in the nature of limits provided for Automobile dealers based of share split* Life
on the monthly loan conversions and partly disbursed loans for immovable properties. These undrawn limits are converted within a short GT25 25 Jan 17 21,18,600 - - 1,92,140 2,61,770 16,64,690 16,64,690 - 202 -
period of time and do not generally remain undisbursed / undrawn beyond one year from the reporting date. The undrawn commitments JAN 2017
amount outstanding as at March 31, 2021 is ₹ 1,24,190 lakhs (₹ 84,535 lakhs as at March 31, 2020).
GT30 30 Jan 18 2,38,485 - - - 34,400 2,04,085 2,04,085 - 262 -
The Company creates expected credit loss provision on the undrawn commitments outstanding as at the end of the reporting period and JAN 2018
the related expected credit loss on these commitments as at March 31, 2021 is ₹ 104 lakhs (₹ 131 lakhs as at March 31, 2020).
GT30 30 Jan 18 89,800 - - - 2,500 87,300 60,360 26,940 262 0.84 years
Note : 40 ESOP DISCLOSURE JAN 2018A
ESOP 2007 GT23 23 Apr 18 44,900 - - - 17,960 26,940 - 26,940 312 0.56 years
APR 2018
The Board at its meeting held on June 22, 2007, approved an issue of Stock Options up to a maximum of 5% of the issued Equity Capital of
the Company (before Rights Issue) aggregating to 1,904,162 Equity Shares (prior to share split) in a manner provided in the SEBI (Employee GT26 26 Jul 18 2,74,860 - - 1,31,500 3,000 1,40,360 86,600 53,760 299 0.32 years
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. JUL 2018
GT30 30 Oct 18 3,67,300 - - 44,900 25,000 2,97,400 1,03,960 1,93,440 254 1.08 years
ESOP 2016
OCT 2018
The Board at its meeting held on October 7, 2016, approved to create, and grant from time to time, in one or more tranches, not exceeding GT19 19 Mar 19 5,88,460 - - - 17,280 5,71,180 2,75,740 2,95,440 278 1.47 years
31,25,102 Employee Stock Options to or for the benefit of such person(s) who are in permanent employment of the company including MAR 2019
some of subsidiaries, managing director and whole time director, (other than promoter/promoter group of the company, independent
GT30 30 Jul 19 31,632 - - 4,860 - 26,772 13,386 13,386 248 0.33 years
directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the company), as may be decided by
JUL 2019
the Board, exercisable into not more than 31,25,102 equity shares of Face value of ` 10 each fully paid-up, on such terms and in such manner
GT05 05 Nov 19 2,75,600 - - - 25,560 2,50,040 29,560 2,20,480 316 1.73 years
as the Board may decide in accordance with the provisions of the applicable laws and the provisions of ESOP 2016.
NOV 2019
In this regard, the Company has recognised expense amounting to ` 561 lakhs for employees services received during the year, shown under GT23 23 Jan 20 53,000 - - - 10,600 42,400 - 42,400 318 1.94 years
Employee Benefit Expenses (Refer Note 28).
JAN 2020
145 146
Note : 40 ESOP DISCLOSURE (Contd.) Note : 40 ESOP DISCLOSURE (Contd.)
Options Options
Options Options
vested Options Options Options
Options
outstanding outstandingunvested During the Year vested
but not outstanding unvested
outstanding
exercised 2019-20 but not
exercised
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
of options / Expired and Remaining
of share split* Life
GT03 3 Jun 20 - - 2,11,900 - - 2,11,900 - 2,11,900 158 1.88 years
GT25 25 Jan 17 4,72,842 18,91,368 - 17,920 2,27,690 21,18,600 13,76,010 7,42,590 202 0.82 years
JUNE 2020
GT03 3 Jun 20 - - 1,905 - - 1,905 - 1,905 158 0.18 years JAN 2017
JUNE 2020A GT30 30 Jan 18 49,040 1,96,160 - - 6,715 2,38,485 1,46,535 91,950 262 0.84 years
Total 40,82,637 - 2,13,805 3,73,400 3,98,070 35,24,972 24,38,381 10,86,591 JAN 2018
GT30 30 Jan 18 17,960 71,840 - - - 89,800 35,920 53,880 262 1.34 years
Note: Includes options (vested and unvested) issued employees of subsidiary as at March 31, 2021 - 11,276 options prior to share JAN 2018A
GT23 23 Apr 18 8,980 35,920 - - - 44,900 8,980 35,920 312 1.19 years
split (March 31, 2020 - 11,276 options).
APR 2018
*Equity shares of face value of ₹ 10/- have been split into face value of ₹ 2 per share on June 18, 2019, pursuant to resolution passed GT26 26 Jul 18 54,972 2,19,888 - - - 2,74,860 68,715 2,06,145 299 0.82 years
through postal ballot on June 3, 2019. JUL 2018
GT30 30 Oct 18 73,460 2,93,840 - - - 3,67,300 73,460 2,93,840 254 1.71 years
The movement in Stock Options during the previous year are given below: OCT 2018
GT19 19 Mar 19 1,17,692 4,70,768 - - - 5,88,460 1,46,060 4,42,400 278 2.09 years
Employee Stock Option Plan 2007 MAR 2019
GT30 30 Jul 19 - - 31,632 - - 31,632 - 31,632 248 0.83 years
Options Options
Options Options JUL 2019
outstanding During the vested
outstandingunvested GT05 5 Nov 19 - - 2,75,600 - - 2,75,600 - 2,75,600 316 2.30 years
but not
Year 2019-20 exercised NOV 2019
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted GT23 23 Jan 20 - - 53,000 - - 53,000 - 53,000 317 2.52 years
Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average JAN 2020
of options / Expired and Remaining Total 7,94,946 31,79,784 3,60,232 17,920 2,34,405 40,82,637 18,55,680 22,26,957
of share split* Life Note: Includes options (vested and unvested) issued employees of subsidiary as at March 31, 2020 - 11,276 options prior to share split
GT25 25 Apr 08 - - - - - - - - 38 - (March 31, 2019 - 11,276 options)
Apr 2008 *Equity shares of face value of ₹ 10/- have been split into face value of ₹ 2 per share on June 18, 2019, pursuant to resolution passed
GT27 27 Jan 11 9,163 36,652 - - 22,695 23,120 23,120 - 38 - through postal ballot on June 3, 2019.
JAN 2011A The following tables list the inputs to the Black Scholes model used for the plans for the year ended March 31, 2021:
GT27 27 Jan 11 5,976 23,904 - - 29,880 - - - 38 -
JAN 2011B
ESOP 2007
GT30 30 Apr 11 7,948 31,792 - - 14,500 25,240 25,240 - 33 -
APR 2011 Variables
GT27 27 Oct 11 7,936 31,744 - - 9,920 29,760 29,760 - 31 - Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value
OCT 2011 Interest Rate Volatility underlying of the Option
Total 31,023 1,24,092 - - 76,995 78,120 78,120 - Share in the (₹)
Market at the time
of the Option
Grant (₹)
30 Jul 07 7.10% - 7.56% 3 - 6 years 40.64% - 43.16% 5.65% 193.40 61.42
24 Oct 07 7.87% - 7.98% 3 - 6 years 41.24% - 43.84% 5.65% 149.90 44.25
25 Jan 08 6.14% - 7.10% 3 - 6 years 44.58% - 47.63% 5.65% 262.20 78.15
25 Apr 08 7.79% - 8.00% 2.5 - 5.5 years 45.78% - 53.39% 3.97% 191.80 76.74
30 Jul 08 9.14% - 9.27% 2.5 - 5.5 years 46.52% - 53.14% 3.97% 105.00 39.22
24 Oct 08 7.54% - 7.68% 2.5 - 5.5 years 48.2% - 55.48% 3.97% 37.70 14.01
147 148
Note: ESOP 2007 (Contd.) Note : 41 SHARING OF COSTS
Variables The Company shares certain costs / service charges with other companies. These costs have been allocated between the Companies on a
Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value basis mutually agreed between them, which has been relied upon by the Auditors.
Interest Rate Volatility underlying of the Option
Share in the (₹) Note : 42 CAPITAL MANAGEMENT
Market at the time The Company maintains an actively managed capital base to cover risks inherent in the business, meeting the capital adequacy requirements of
of the Option
Reserve Bank of India (RBI), maintain strong credit rating and healthy capital ratios in order to support business and maximise shareholder value.
Grant (₹)
The adequacy of the Company’s capital is monitored by the Board using, among other measures, the regulations issued by RBI.
27 Jan 11
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk characteristics
- Tranche I 8% 4 years 59.50% 10% 187.60 94.82
of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend payment to shareholders,
- Tranche II 8% 3.4 years 61.63% 10% 187.60 90.62
return capital to shareholders or issue capital securities.
30 Apr 11 8% 4 years 59.40% 25% 162.55 73.07
28 Jul 11 8% 4 years 58.64% 25% 175.35 79.17 The Company has complied in full with the capital requirements prescribed by RBI over the reported period. Refer Note 51A(i) for disclosure of
27 Oct 11 8% 4 years 57.52% 25% 154.55 67.26 capital adequacy as per applicable RBI regulations.
The shareholders of the Company, at the 34th Annual General Meeting held on July 30, 2012, authorised extension of exercise period 42.1 RISK MANAGEMENT
from 3 years from the date of vesting to 6 years from the date of vesting. Accordingly, the Company has measured the fair value of the The company is committed to create value for its stakeholders through sustainable business growth and with that intent has put in place a robust
options using the Black Scholes model immediately before and after the date of modification to arrive at the incremental fair value
risk management framework to promote a proactive approach in reporting, evaluating and resolving risks associated with the business. Given the
arising due to the extension of the exercise period. The incremental fair value so calculated is recognised from the modification date
nature of the business the company is engaged in, the risk framework recognizes that there is uncertainty in creating and sustaining such value
over the vesting period in addition to the amount based on the grant date fair value of the stock options.
The incremental (benefit)/cost due to modification of the exercise period from 3 years to 6 years from the date of vesting for the year as well as in identifying opportunities. Risk management is therefore made an integral part of the company’s effective management practice.
ended March 31, 2021 is ₹ Nil (March 31, 2020 - ₹ Nil) Risk Management Framework:
The fair value of the options has been calculated using the Black Scholes model on the date of modification.
The assumptions considered for the calculation of the fair value (on the date of modification) are as follows: Company’s risk management framework is based on
(a) Clear understanding and identification of various risks
Variables Post Modification
Risk Free Interest Rate 7.92%-8.12% (b) Disciplined risk assessment by evaluating the probability and impact of each risk
Expected Life 0.12 years- 6.25 years (c) Measurement and monitoring of risks by establishing key risk indicators with thresholds for all critical risks and
Expected Volatility 28.28%-63.00% (d) Adequate review mechanism to monitor and control risks.
Dividend Yield 1.18% Company’s risk management division works as a value center by constantly engaging with the business providing reports based on key analysis
Price of the underlying share in market at the time of the option grant.(₹) 212.05 and insights. The key risks faced by the company are credit risk, liquidity risk, interest rate risk, operational risk, reputational and regulatory risk,
which are broadly classified as credit risk, market risk and operational risk. The company has a well-established risk reporting and monitoring
ESOP 2016
framework. The in-house developed risk monitoring tool, Chola Composite Risk Index, measures the movement of top critical risks. This provides
Variables
the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified key risk indicators and are aligned
Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value
to the overall company’s risk appetite framework approved by the board. The company’s risk management initiatives and risk MIS are reviewed
Interest Rate Volatility underlying of the Option
Share in the (₹) monthly by the top management. This process enables the company to reassess the top critical risks in a changing environment that need to be
Market at the time focused on.
of the Option
Risk Governance structure:
Grant (₹)
25 Jan 17 6.36% - 6.67% 3.5 -6.51 years 33.39% -34.47% 0.54% 1,010.00 401.29 The company’s overall risk governance is handled by three lines of defense to ensure the effectiveness of an organization’s risk management
30 Jan 18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 496.82 framework including monitoring and assurance functions within the organization.
30 Jan 18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 531.84 a) Under the first line of defence, risk champions are identified in each functional and business unit to take ownership, responsibility and
23 Apr 18 7.45%-7.81% 3.51 -6.51 years 30.33%-32.38% 0.42% 1,562.35 646.08
accountability for directly assessing, controlling and mitigating risks.
26 Jul 18 7.71%-7.92% 3.51 -5.51 years 30.56%-31.83% 0.43% 1,497.30 586.32
30 Oct 18 7.61%-7.85% 3.51 -6.51 years 32.34%-32.70% 0.51% 1,268.50 531.36 b) The risk management team under the guidance of the risk management committee acts as the second line of defense. The risk
19 Mar 19 6.91% - 7.25% 3.51 -6.51 years 32.19% -32.59% 0.47% 1,390.05 564.13 management division has established a comprehensive risk management framework across the business and provides appropriate
30 Jul 19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 248.20 83.66* reports on risk exposures and analysis in its pursuit of creating awareness across the company about risk management. The RMC of the
5 Nov 19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 316.00 112.09*
board meets minimum of four times a year and reviews the risk management policy, implementation of risk management framework,
23 Jan 20 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 317.00 109.51*
monitoring of critical risks, and review of various other initiatives with a structured annual plan.
3 Jun 20 5% 3.50 years 47.50% 1.33% 157.90 58.27*
* Fair value option of equity shares issued under this grant is post share split with a face value of ` 2/- each c) Third line of defense constitutes internal auditors, internal external auditors and statutory auditors provide assurance to the audit
committee and senior management on the effectiveness of internal governance and risk processes.
149 150
Note : 42 CAPITAL MANAGEMENT (Contd.) Note : 42 CAPITAL MANAGEMENT (Contd.)
The company has put in place a robust Disaster Recovery (DR) plan, which is periodically tested. Business Continuity Plan (BCP) is further put in
42.2 CREDIT RISK
place to ensure seamless continuity of operations including services to customers, when confronted with adverse events such as natural disasters,
Credit risk arises when a borrower is unable to meet his financial obligations to the lender. This could be either because of wrong assessment of
technological failures, human errors, terrorism, etc. Periodic testing is carried out to address gaps in the framework, if any. DR and BCP audits
the borrower’s payment capabilities or due to uncertainties in his future earning potential. The effective management of credit risk requires the
are conducted on a periodical basis to provide assurance regarding the effectiveness of the company’s readiness. The company is continuously
establishment of appropriate credit risk policies and processes. The company has comprehensive and well-defined credit policies across various
engaged in creating risk awareness and culture across the organisation through training on risk management tools and communication through
businesses, products and segments, which encompass credit approval process for all businesses along with guidelines for mitigating the risks
risk e-newsletters.
associated with them. The appraisal process includes detailed risk assessment of the borrowers, physical verifications and field visits. The company
has a robust post sanction monitoring process to identify credit portfolio trends and early warning signals. This enables it to implement necessary 42.6 LIQUIDITY RISK
changes to the credit policy, whenever the need arises. Also, being in asset financing business, most of the company’s lending is covered by
PUBLIC DISCLOSURE ON LIQUIDITY RISK -MARCH 31, 2021
adequate collaterals from the borrowers. The company has a robust online application underwriting model to assess the credit worthiness of
the borrower for underwriting decisions for its vehicle finance, Loan Against Property and home loan business. The company also has a well- (i) Funding concentration based on significant counterparty (both deposits and borrowings)
developed model for the vehicle finance portfolio, to help business teams plan volume with adequate pricing of risk for different segments of the Sr. No No. of Significant Counterparties Amount (` In lakhs) % of Total Deposits % of Total Liabilities
portfolio.
1 17 45,94,703 NA 70.70%
42.3 MARKET RISK
(ii) Top 20 large deposits (amount in ` Crore and % of total deposits)
Market Risk is the possibility of loss arising from changes in the value of a financial instrument as a result of changes in market variables such
Not Applicable
as interest rates, exchange rates and other asset prices. The company’s exposure to market risk is a function of asset liability management and
interest rate sensitivity assessment. The company is exposed to interest rate risk and liquidity risk, if the same is not managed properly. The (iii) Top 10 borrowings (amount in ` Crore and % of total borrowings)
company continuously monitors these risks and manages them through appropriate risk limits. The Asset Liability Management Committee Amount (` In Lakhs) % of Total Borrowings
(ALCO) reviews market-related trends and risks and adopts various strategies related to assets and liabilities, in line with the company’s risk
management framework. ALCO activities are in turn monitored and reviewed by a board sub-committee. In addition, the company has put in an 14,64,828 23.17%
Asset Liability Management (ALM) support group which meets frequently to review the liquidity position of the company. (iv) Funding concentration based on significant instrument / product
42.4 CONCENTRATION OF RISK/EXPOSURE
Sr. No Name of the instrument / product Amount (` In Lakhs) % of Total Liabilities
Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such counterparties 1 Rupee Term Loans 39,06,532 60.11%
are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet contractual obligations
2 NCDs (including PDI & Sub Debt) 12,59,760 19.38%
is uniformly affected by changes in economic, political or other conditions. The Company is in retail lending business on pan India basis targeting
3 CPs 3,06,500 4.72%
primarily customers who either do not get credit or sufficient credit from the traditional banking sector. Vehicle Finance (consisting of new
and used Commercial Vehicles, Passenger Vehicles, Tractors, Construction Equipment and Trade advance to Automobile dealers) is lending 4 ECB Loans 3,70,642 5.70%
against security (other than for trade advance) of Vehicle/ Tractor / Equipment and contributes to 72% of the loan book of the Company as of 5 Securitisation 4,63,916 7.14%
March 31, 2021 (73% as of March 31, 2020). Hypothecation endorsement is made in favour of the Company in the Registration Certificate in 6 Rupee Denominated Bonds 40,000 0.62%
respect of all registerable collateral. Portfolio is reasonably well diversified across South, North, East and Western parts of the country. Similarly, TOTAL 63,47,350 97.67%
sub segments within Vehicle Finance like Heavy Commercial Vehicles, Light Commercial Vehicles, Car and Multi Utility Vehicles, three wheeler
(v) Stock Ratios:
and Small Commercial Vehicles, Refinance against existing vehicles, older vehicles (first time buyers), Tractors and Construction Equipment have
portfolio share between 10% and 6% leading to well diversified sub product mix. (a) Commercial papers as a % of total public funds, total liabilities and total assets :
Loan Against Property is mortgage loan against security of existing immovable property (primarily self-occupied residential property) to self- Commercial Papers as a % of total public funds 4.83%
employed non-professional category of borrowers and contributes to 22% of the lending book of the Company as of March 31, 2021 (21% as of Commercial Papers as a % of total liabilities 4.72%
March 31, 2020). Portfolio is concentrated in North 38% with small presence in East (4%). The remaining is evenly distributed between South and Commercial Papers as a % of total assets 4.11%
Western parts of the country. South has 32% and West contributes 25%.
The Concentration of risk is managed by Company for each product by its region and its sub-segments. Company did not overly depend on few (b) Non-convertible debentures (original maturity of less than one year) as a % of total public funds, total liabilities and total assets –
regions or sub-segments as of March 31, 2021. Non-convertible debentures (original maturity of less than one year) as a % of total public funds 0%
42.5 OPERATIONAL RISK Non-convertible debentures (original maturity of less than one year) as a % of total liabilities 0%
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. The operational Non-convertible debentures (original maturity of less than one year) as a % of total assets 0%
risks of the company are managed through comprehensive internal control systems and procedures and key back up processes. In order to further
(c) Other short-term liabilities, if any as a % of total public funds, total liabilities and total assets :
strengthen the control framework and effectiveness, the company has established risk control self-assessment at branches to identify process
lapses by way of exception reporting. This enables the management to evaluate key areas of operational risks and the process to adequately Other Short-term liabilities as a % of total public funds 1.34%
mitigate them on an ongoing basis. The company also undertakes risk based audits on a regular basis across all business units / functions. While Other Short-term liabilities as a % of total liabilities 1.31%
examining the effectiveness of control framework through self-assessment, the risk-based audit would assure effective implementation of self- Other Short-term liabilities as a % of total assets 1.14%
certification and internal financial controls adherence, thereby, reducing enterprise exposure.
151 152
(vi) Institutional set-up for liquidity risk management:
Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit
settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its
recognised in Other and loss Reserve to Profit or Loss and Loss because of
payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Comprehensive Income (₹ in Lakhs) (₹ in Lakhs) the Reclassification
Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this (₹ in Lakhs)
risk, management has arranged for diversified funding sources and adopted a policy of availing funding in line with the tenor and repayment
Foreign exchange (4,521) - - NA
pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Company has developed internal control processes
risk and Interest rate risk
and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and the availability of unencumbered
receivables which could be used to secure funding by way of assignment if required. The Company also has lines of credit that it can access to
meet liquidity needs. These are reviewed by the Asset Liability Committee (ALCO) on a monthly basis. The ALCO provides strategic direction
and guidance on liquidity risk management. A sub-committee of the ALCO, comprising members from the Treasury and Risk functions, monitor As at March 31, 2020
liquidity risks on a weekly basis and decisions are taken on the funding plan and levels of investible surplus, from the ALM perspective. This sets
Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item
the boundaries for daily cash flow management. Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance
Notes: Risk on Cash Instruments Instruments Hedging used as a basis for sheet
1) A "Significant Counterparty" is defined as a single counterparty or group of connected or affiliated counterparties accounting in aggregate for Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge
more than 1% of NBFC-NDSI's, NBFC- D's total liabilities and 10% for other non deposit taking NBFCs. (₹ in Lakhs) effectiveness (₹ in Lakhs)
2) A "significant instrument/product" is defined as a single instrument/product of group of similar instruments/products which in aggregate Cross Currency Asset Liability Asset Liability September 25, 2020 11,420 (21,038) Borrowings
amount to more than 1% of the NBFC- NDSI's, NBFC-Ds total liabilities and 10% for other non-deposit taking NBFCs. Interest rate swap 9 - 2,22,953 - to June 03, 2024
3) Total Borrowing has been computed as Gross Total Debt basis extant regulatory ALM guidelines.
4) Total Liabilities has been computed as Total Assets less Equity share capital less Reserve & Surplus and computed basis extant regulatory ALM
guidelines. Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
5) Commercial Paper for stock ratio is the Gross outstanding (i.e. Maturity amount). Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit
6) Other Short-term Liabilities has been computed as Total Short-term Liabilities less Commercial paper less Non-convertible debentures recognised in Other and loss Reserve to Profit or Loss and Loss because of
(Original maturity of less than one year), basis extant regulatory ALM guidelines. Comprehensive Income (₹ in Lakhs) (₹ in Lakhs) the Reclassification
7) Public Funds = Total Liabilities as computed above. (₹ in Lakhs)
Refer Note No 47 for the summary of maturity profile of undiscounted cash flows of the Company’s financial assets and financial liabilities as at Foreign exchange (9,232) - - NA
reporting period. risk and Interest rate risk
Refer Note no 56 for Liquidity Coverage Ratio 42.9 Collateral and other Credit Enhancements
42.7 FOREIGN CURRENCY RISK Although collateral can be an important mitigation of credit risk, it is the Company’s practice to lend on the basis of the customer’s ability to meet
Foreign Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign currency the obligations out of cash flow resources other than placing primary reliance on collateral and other credit risk enhancements.
risk for the Company arise majorly on account of foreign currency borrowings. The Company manages this foreign currency risk by entering in
to cross currency swaps and forward contract. When a derivative is entered in to for the purpose of being as hedge, the Company negotiates the The Company obtains first and exclusive charge on all collateral that it obtains for the loans given. Vehicle Finance and Loan Against Property
terms of those derivatives to match with the terms of the hedge exposure. The Company’s policy is to fully hedge its foreign currency borrowings loans are secured by collateral at the time of origination. In case of Vehicle loans, Company values the vehicle either through proforma invoice
at the time of drawdown and remain so till repayment. (for new vehicles) or using registered valuer for used vehicles. In case of Loan Against Property loans, the value of the property at the time of
The Company holds derivative financial instruments such as Cross currency interest rate swap to mitigate risk of changes in exchange rate in origination will be arrived by obtaining two valuation reports from Company’s empanelled valuers.
foreign currency and floating interest rate.
The Counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for similar Hypothecation endorsement is obtained in favour of the Company in the Registration Certificate of the Vehicle/ Tractor / Equipment funded under
assets and liabilities in active markets or inputs that are directly or indirectly observable in market place. the vehicle finance category.
42.8 Disclosure of Effects of Hedge Accounting Immovable Property is the collateral for Loan Against Property loans. Security Interest in favour of the Company is created by Mortgage through
Cash flow Hedge deposit of title deed which is registered wherever required by law.
As at March 31, 2021 In respect of Other loans, Home loans follow the same process as Loan Against Property and pledge is created in favour for the Company for loan
Foreign Nominal Carrying Maturity Changes in Changes in the value Line item against securities.
Exchange Value of Hedging Value of Hedging Date Fair value of of Hedged Item in Balance
Risk on Cash Instruments Instruments Hedging used as a basis for sheet The Company does not obtain any other form of credit enhancement other than the above. 99% of the Company’s term loan are secured by way
Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge of tangible Collateral.
(₹ in Lakhs) effectiveness (₹ in Lakhs)
Any surplus remaining after settlement of outstanding debt by way of sale of collateral is returned to the customer / borrower.
Asset Liability Asset Liability
Cross Currency 6 1 1,57,501 65,152 March 18, 2022 to (1,720) (11,025) Borrowings
Interest rate swap June 03, 2024
Interest rate swaps 1 0 1,42,238 - June 20, 2028 (1,953) - Borrowings
Forward contracts 0 26 - 7,922 March 21, 2022 to 11,828 5,041 Borrowings
June 03, 2024
153 154
Note : 43 EVENTS AFTER REPORTING DATE Note : 44.2 Fair value hierarchy
There have been no events after the reporting date that require disclosure in the financial statements. The following table provides the fair value measurement hierarchy of the Company's assets and liabilities
Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2021
Note : 44
44.1 - Fair value of financial instruments not measured at fair value ` in lakhs
Fair value measurement using
Set out below is a comparison, by class, of the carrying amounts and fair values of the Company ’s financial instruments that are not carried ` in lakhs
Carrying Value Quoted price in Significant Significant
at fair value in the balance sheet. This table does not include the fair values of non–financial assets and non–financial liabilities. active markets observable unobservable
(Level 1) inputs inputs
` in lakhs
(Level 2) (Level 3)
March 31,2021 March 31,2020
Carrying Fair Carrying Fair Assets measured at Fair value
Value Value Value Value FVOCI Equity Instruments - - - -
Financial Assets Derivative financial instruments 4,587 - 4,587 -
Cash and Cash Equivalents 1,55,370 1,55,370 3,46,188 3,46,188 Assets for which fair values are disclosed
Bank balances Other than Cash and Cash Equivalents 3,67,818 3,67,818 3,49,722 3,49,722 Loans 65,83,934 - 68,38,189 -
Receivables Investments in Government securities 1,54,590 1,46,905 -
i) Trade Receivables 2,031 2,031 2,176 2,176 Investment Properties * 13 - - 304
ii) Other Receivables 4,612 4,612 3,698 3,698 There have been no transfers between different levels during the period.
Loans 65,83,934 68,38,189 55,40,273 54,70,335 * Fair value of investment property is calculated based on valuation given by external independent valuer.
Investments in Government securities 1,54,590 1,46,905 - -
Other Financial Assets 56,278 56,278 41,327 41,327 Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2021 ` in lakhs
Total Financial Assets 73,24,633 75,71,203 62,83,384 62,13,446
Fair value measurement using
Financial Liabilities
Payables active markets observable unobservable
i) Trade Payables 23,601 23,601 20,290 20,290 (Level 1) inputs inputs
ii) Other Payables 20,492 20,492 9,949 9,949 (Level 2) (Level 3)
Debt Securities 12,35,767 12,36,407 7,32,683 7,32,658 Liabilities measured at Fair value
Borrowings(Other than Debt Securities) 47,18,226 47,15,550 43,27,308 43,23,357 Derivative financial instruments 12,742 - 12,742 -
Liabilities for which fair values are disclosed
Subordinated Liabilities 4,19,006 4,20,811 4,40,552 4,40,595
Debt Securities 12,35,767 - 12,36,407 -
Other Financial Liabilities 49,217 49,217 38,621 38,621
Borrowings(Other than Debt Securities) 47,18,226 - 47,15,550 -
Total Financial Liabilities 64,66,309 64,66,078 55,69,403 55,65,470 Subordinated Liabilities 4,19,006 - 4,20,811 -
The Management assessed that cash and cash equivalents, bank balance other than Cash and cash equivalents, receivable, other financial assets, There have been no transfers between the level 1 and level 2 during the period.
payables and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments. The fair value
of the investments have been considered as the carrying value of these investments since these investments have been made in the subsidiaries Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2020 ` in lakhs
of the Company. Fair value measurement using
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction active markets observable unobservable
between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values (Level 1) inputs inputs
of financial assets or liabilities disclosed under level 2 category. (Level 2) (Level 3)
Assets measured at Fair value
i) The fair value of loans have estimated by discounting expected future cash flows using discount rate equal to the rate near to the
FVOCI Equity Instruments - - - -
reporting date of the comparable product. Derivative financial instruments 11,420 - 11,420 -
ii) The fair value of debt securities, borrowings other than debt securities and subordinated liabilities have estimated by discounting Assets for which fair values are disclosed
expected future cash flows discounting rates. Loans 55,40,273 - 54,70,335
Investment Properties * 14 - - 299
iii) Derivatives are fair valued using observable inputs / rates.
There have been no transfers between different levels during the period.
iv) The fair value of investment in Government securities are derived from rate equal to the rate near to the reporting date of the * Fair value of investment property is calculated based on valuation given by external independent valuer.
comparable product.
155 156
Note : 44.2 Fair value hierarchy (Contd.) Note : 45 MATURITY ANALYSIS (Contd.)
Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2020 ` in lakhs
` in lakhs
Maturity
Fair value measurement using Amount Within 12 After 12
Carrying Value Quoted price in Significant ` in lakhs
Significant months months
active markets observable unobservable
(Level 1) inputs inputs Non- Financial Assets
(Level 2) (Level 3) Current tax assets (Net) 14,615 - 14,615
Liabilities measured at Fair value Deferred tax assets (Net) 76,380 - 76,380
Derivative financial instruments - - - Investment Property 13 - 13
Liabilities for which fair values are disclosed Property, Plant and Equipment 20,302 - 20,302
Debt Securities 7,32,683 - 7,32,658 -
Intangible assets under development 982 - 982
Borrowings(Other than Debt Securities) 43,27,308 - 43,23,357 -
Other Intangible assets 1,645 - 1,645
Subordinated Liabilities 4,40,552 - 4,40,595 -
Other Non-Financial Assets 4,393 1,816 2,577
There have been no transfers between different levels during the period.
Total Non- Financial Assets 1,18,330 1,816 1,16,514
Note : 44.3 Summary of Financial assets and liabilities which are recognised at amortised cost Financial Liabilities
` in lakhs
Particulars As at As at Derivative financial instruments 12,742 - 12,742
March 31, 2021 March 31,2020 Payables
Financial Assets i) Trade Payables 23,601 23,601 -
Cash and Cash Equivalents 1,55,370 3,46,188
ii) Other Payables 20,492 20,492 -
Bank balances other than Cash and Cash Equivalents 3,67,818 3,49,722
Debt Securities 12,35,767 6,04,785 6,30,982
Loans 65,83,934 55,40,273
Borrowings(Other than Debt Securities) 47,18,226 16,91,807 30,26,419
Other Financial Assets 56,278 41,327
Investments in Government Securities 1,54,590 - Subordinated Liabilities 4,19,006 1,01,959 3,17,047
Financial Liabilities Other Financial Liabilities 49,217 39,718 9,499
Debt Securities 12,35,767 7,32,683 Total Financial Liabilities 64,79,051 24,82,362 39,96,689
Borrowings(Other than Debt Securities) 47,18,226 43,27,308 Non-Financial Liabilities
Subordinated Liabilities 4,19,006 4,40,552 Current tax liabilities 4,225 4,225 -
Other Financial liabilities 49,217 38,621 Provisions 10,958 10,958 -
Note: 44.4 Refer Note 13 for sensitivity analysis for investment property, whose fair value is disclosed under the level 3 category. Other Non-Financial Liabilities 4,577 3,303 1,274
Total Non-Financial Liabilities 15,535 18,486 1,274
Note : 45 MATURITY ANALYSIS
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled.
Maturity Maturity
Amount Within 12 After 12 Amount Within 12 After 12
months months months months
As on March 31, 2021 As on March 31, 2020
Financial Assets Financial Assets
Cash and Cash Equivalents 1,55,370 1,55,370 - Cash and Cash Equivalents 3,46,188 3,46,188 -
Bank balances Other than Cash and Cash Equivalents 3,67,818 3,40,303 27,515 Bank balances Other than Cash and Cash Equivalents 3,49,722 3,14,752 34,970
Derivative financial instruments 4,587 - 4,587 Derivative financial instruments 11,420 1,711 9,709
Receivables Receivables
i) Trade Receivables 2,031 2,031 - i) Trade Receivables 2,176 2,176 -
ii) Other Receivables 4,612 4,612 - ii) Other Receivables 3,698 3,698 -
Loans 65,83,934 19,71,863 46,12,071 Loans 55,40,273 12,28,603 43,11,670
Investments 1,61,882 9,714 1,52,168 Investments 7,292 - 7,292
Other Financial Assets 56,278 26,982 29,296 Other Financial Assets 41,327 13,023 28,304
Total Financial Assets 73,36,512 25,10,875 48,25,637 Total Financial Assets 63,02,096 19,10,151 43,91,945

157 158
Note : 45 MATURITY ANALYSIS (Contd.) Note : 47 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES
` in lakhs
As at March 31, 2021 ` in lakhs
Maturity
Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
Amount Within 12 After 12
1 month months months months years years 5 years
months months
Financial Assets
Non- Financial Assets Cash and Cash Equivalents 1,55,370 - - - - - - 1,55,370
Current tax assets (Net) 15,208 - 15,208 Bank Balances other than Cash and 96,303 1,02,196 1,36,657 3,577 13,043 10,571 11,444 3,73,791
Deferred tax assets (Net) 52,083 - 52,083 Cash Equivalents
Derivative financial instruments - - - - - - 4,587 4,587
Investment Property 14 - 14
Receivables
Property, Plant and Equipment 25,599 - 25,599 i) Trade Receivables 2,031 - - - - - - 2,031
Intangible assets under development 1,026 - 1,026 ii) Other Receivables 4,612 - - - - - - 4,612
Other Intangible assets 1,747 - 1,747 Loans 5,02,874 5,38,796 7,04,685 13,47,385 37,59,707 13,26,678 19,71,659 1,01,51,784
Other Non-Financial Assets 2,466 935 1,531 Investments - 1,135 3,722 4,857 19,428 19,428 1,13,312 1,61,882
Other Financial Assets 1,641 12,851 4,368 7,475 18,298 10,630 10,672 65,935
Total Non- Financial Assets 98,143 935 97,208
Total Undiscounted financial 7,62,831 6,54,978 8,49,432 13,63,294 38,10,476 13,67,307 21,11,674 1,09,19,992
Financial Liabilities assets
Derivative financial instruments - - - Financial Liabilities
Payables Derivative financial instruments - - - - - - 12,742 12,742
Payables
i) Trade Payables 20,290 20,290 -
(I) Trade Payables
ii) Other Payables 9,949 9,949 -
i) Total outstanding dues of - - - - - - - -
Debt Securities 7,32,683 4,10,141 3,22,542 micro and small enterprises
Borrowings(Other than Debt Securities) 43,27,308 11,89,717 31,37,591 ii) Total outstanding dues of 23,601 - - - - - - 23,601
Subordinated Liabilities 4,40,552 52,023 3,88,529 creditors other than micro
and small enterprises
Other Financial Liabilities 38,621 29,023 9,598
(II) Other Payables
Total Financial Liabilities 55,69,403 17,11,143 38,58,260 i) Total outstanding dues of - - - - - - - -
Non-Financial Liabilities micro and small enterprises
Provisions 9,076 9,076 - ii) Total outstanding dues of 20,492 - - - - - - 20,492
Other Non-Financial Liabilities 4,576 2,598 1,978 creditors other than micro
Debt Securities 1,13,137 2,70,683 1,08,618 1,48,066 5,52,907 1,60,428 2,712 13,56,551
Borrowings (Other than 1,59,219 3,08,806 7,48,826 7,09,140 25,22,320 6,94,544 1,10,157 52,53,012
Note : 46 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES Debt Securities)
` in lakhs Subordinated Liabilities 273 37,967 12,769 78,271 1,66,250 76,319 15,33,381 19,05,230
Particulars April 01, 2020 Cash flows Exchange Other March 31, 2021 Other Financial Liabilities 40,771 884 1,159 1,994 9,838 583 - 55,229
Difference
Total Undiscounted 3,57,493 6,18,340 8,71,372 9,37,471 32,51,315 9,31,874 16,58,992 86,26,857
Debt Securities 7,32,683 5,00,898 - 2,186 12,35,767
financial liabilities
Borrowings other than debt securities 43,27,308 4,04,659 (13,268) (473) 47,18,226 Total net Undiscounted 4,05,338 36,638 (21,940) 4,25,823 5,59,161 4,35,433 4,52,682 22,93,135
Subordinated liabilities 4,40,552 (20,150) - (1,396) 4,19,006 financial assets/(liabilities)
Total 55,00,543 8,85,407 (13,268) 317 63,72,999
` in lakhs
Particulars April 01, 2019 Cash flows Exchange Other March 31, 2020
Difference
Debt Securities 14,18,431 (6,68,840) - (16,908) 7,32,683
Borrowings other than debt securities 32,12,375 10,98,059 20,341 (3,467) 43,27,308
Subordinated liabilities 4,25,868 15,500 - (816) 4,40,552
Total 50,56,674 4,44,719 20,341 (21,191) 55,00,543
(i) Others column represents the effect of interest accrued but not paid on borrowing, amortisation of processing fees etc
(ii) Liabilities represents of Debt securities, Borrowings (other than debt securities) and Subordinated Liabilities
159 160
Note : 47 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES (Contd.) Note : 48 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES (Contd.)
As at March 31, 2020 ` in lakhs Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included in Property,
Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total Plant and Equipment and the movements during the period:
1 month months months months years years 5 years (i) Movement in the carrying value of the Right to Use Asset ` in lakhs
Financial Assets Particulars - Buildings As on March 31, 2021 As on March 31, 2020
Cash and Cash Equivalents 3,02,482 41,302 - - - - - 3,43,784 Opening Balance 10,670 11,370
Bank Balances other than 1,966 13,029 3,02,688 6,259 22,384 4,817 16,264 3,67,407 Depreciation charge for the Period (4,542) (4,190)
Cash and Cash Equivalents
Additions during the Period 1,504 4,084
Derivative financial instruments - - 1,711 - 7,816 1,893 - 11,420
Adjustment/Deletion (22) (594)
Receivables
Closing Balance 7,610 10,670
i) Trade Receivables 2,176 - - - - - - 2,176
ii) Other Receivables 3,698 - - - - - - 3,698 (ii) Classification of current and non current liabilities of the lease liabilities ` in lakhs
Loans 1,91,707 1,15,874 2,96,355 11,97,025 34,84,077 13,32,617 15,83,534 82,01,189
Investments - - - - - - 7,292 7,292 Particulars As on March 31, 2021 As on March 31, 2020
Other Financial Assets 615 585 4,244 7,539 18,952 9,839 11,038 52,812 Current liabilities 4,330 5,057
Total Undiscounted 5,02,644 1,70,790 6,04,998 12,10,823 35,33,229 13,49,166 16,18,128 89,89,778 Non Current Liabilities 4,575 6,985
financial assets Total Lease liabilities 8,905 12,042
Derivative financial instruments - - - - - - - - (iii) Movement in the carrying value of the Lease Liability
` in lakhs
Payables
Particulars As on March 31, 2021 As on March 31, 2020
(I) Trade Payables
Opening Balance 12,042 12,199
i) Total outstanding dues of 70 - - - - - - 70
Interest Expense 924 1,153
micro and small enterprises
ii) Total outstanding dues of 20,220 - - - - - - 20,220 Lease Payments [Total Cash Outflow] (4,914) (4,800)
creditors other than micro Short term rent concession (630) -
and small enterprises Additions during the year 1,504 4,084
(II) Other Payables Adjustment/Deletion (21) (594)
i) Total outstanding dues of - - - - - - - - Closing Balance 8,905 12,042
ii) Total outstanding dues of 9,949 - - - - - - 9,949 (iv) Contractual Maturities of Lease liability outstanding
` in lakhs
creditors other than micro
and small enterprises Particulars As on March 31, 2021 As on March 31, 2020
Debt Securities 30,772 1,90,142 9,348 2,05,289 3,07,560 54,811 2,926 8,00,848 Less than one year 4,497 5,304
Borrowings (Other than 94,591 1,37,690 3,79,465 8,55,975 26,43,106 7,98,703 84,373 49,93,903 One to five Years 5,497 8,505
Debt Securities) More than Five years - -
Subordinated Liabilities 11,370 9,182 14,636 44,321 1,95,966 1,13,415 2,70,774 6,59,664 Total 9,994 13,809
Other Financial Liabilities 24,573 864 1,309 2,614 8,983 2,044 - 40,387
(v) The following are the amount recognised in the Profit or Loss statement
Total Undiscounted 1,91,545 3,37,878 4,04,758 11,08,199 31,55,615 9,68,973 3,58,073 65,25,041 ` in lakhs
financial liabilities Particulars March 31, 2021 March 31, 2020
Total net Undiscounted 3,11,099 (1,67,088) 2,00,240 1,02,624 3,77,614 3,80,193 12,60,055 24,64,737 Depreciation expense of right-of-use assets 4,542 4,190
financial assets/(liabilities) Interest expense on lease liabilities 924 1,153
Expense relating to short-term leases (included in other expenses) 109 82
Note : 48 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES Expense relating to leases of low-value assets (included in other expenses) - -
Variable lease payments (included in other expenses) - -
The Company has taken office premises on lease for its operations.
Total amount recognised in profit or loss 5,575 5,425
The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted
from assigning and subleasing the leased assets and some contracts require the Company to maintain certain financial ratios. There Lease expenses relating to short term leases aggregated to ` 109 lakhs (` 82.39 lakhs - March 31, 2020) during the year ended
are several lease contracts that include extension and termination options and variable lease payments, which are further discussed March 31, 2021.
below. Many lessors have provided rent concessions to lessees as a result of the COVID-19 pandemic. Rent concessions represents rent reductions
The Company also has certain leases of machinery with lease terms of 12 months or less. The Company applies the for a period of time. Company has applied practical expedient to Ind AS 116 rent concessions. Pursuant to this, Company has recognised
‘short-term lease’ recognition exemptions for these leases. ` 630 lakhs in Statement of Profit and loss as reversal in the financial statements.
Lease liabilities are recognised at weighted average incremental borrowing rate ranging from 8% to 12%.
161 162
Note : 48 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES (Contd.) Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED FEBRUARY 22, 2007:
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to the lease liabilities as and when they fall due. ` in lakhs
SL Particulars Amount Amount
The Company has several lease contracts that includes extension and termination contracts. These options are negotiated by the No. Outstanding Overdue
Management to provide flexibility in managing the leased-asset portfolio and align with Company's business needs. Management As at March 31,2021
exercises significant judgement in determining whether these extension and termination are reasonably certain to be exercised. Liabilities:
RBI DISCLOSURES (1) Loans and Advances availed by the NBFC inclusive of interest accrued thereon but not paid:
(a) Debentures
The regulatory disclosures provided in these financial statements are in accordance with the requirements of the RBI's notification on - Secured 9,34,263 -
implementation of Ind AS dated March 13, 2020 (wherever applicable). - Unsecured 2,70,086 -
(other than falling within the meaning of public deposits)
- Perpetual Debt Instrument 1,48,920 -
Note : 49 PURSUANT TO REVISION IN GUIDELINES ISSUED ON SECURITISATION/ ASSIGNMENT DATED MAY 7, 2012 (b) Deferred Credits - -
` in lakhs
(c) Term Loans 45,52,555 -
(d) Inter-Corporate Loans and Borrowings - -
March 31,2021 March 31,2020
(e) Commercial Paper 3,01,504 -
ASSETS DE-RECOGNISED
Other Loans 1,65,671 -
a) On Securitisation (Represents Working Capital Demand Loans and Cash Credit from Banks along with Interest
Number of Special Purpose Vehicle (SPV) sponsored for Securitisation transactions 30 29 Accrued but Not Due on above)
Outstanding securitised Assets in books of SPV 4,63,916 4,93,815
Total amount of exposure to comply with Minimum Retention Ratio (MRR) ` in lakhs
a) Off Balance Sheet Exposure SL Particulars Amount Amount
No. Outstanding Overdue
l First Loss - -
As at March 31,2020
l Others 51,136 47,553 Liabilities:
b) On Balance Sheet Exposure (1) Loans and Advances availed by the NBFC inclusive of interest accrued thereon but not paid:
l First Loss – Cash collateral 31,857 37,636 (a) Debentures
l Others - Secured 5,74,418 -
i) Second Loss – Cash Collateral - - - Unsecured 2,90,955 -
ii) Investment in PTC 29,996 30,806 (other than falling within the meaning of public deposits)
- Perpetual Debt Instrument 1,49,597 -
Amount of Exposures to Securitisation transactions Other than MRR Nil Nil
(b) Deferred Credits - -
Book value of Assets sold 9,64,026 9,53,016
(c) Term Loans 41,81,750 -
(d) Inter-Corporate Loans and Borrowings - -
` in lakhs (e) Commercial Paper 1,58,265 -
Particulars As at As at Other Loans 1,45,559 -
March 31,2021 March 31,2020 (Represents Working Capital Demand Loans & Cash Credit from Banks along with Interest
ASSETS DE-RECOGNISED Accrued but Not Due on above)
b) On Bilateral assignment
Number of Assignment Transactions 24 24 ` in lakhs
Outstanding Assigned Assets in books of Assignee 4,29,157 5,24,803 SL Particulars Amount Amount
Less: Collections not yet due to be remitted to Assignee# 13,115 12,218 No. Outstanding Outstanding
As at As at
Outstanding Assigned Assets as per books 4,16,042 5,12,585
March 31, 2021 March 31,2020
Total amount of exposure
(2) Break-up of Loans and Advances including Bills Receivables [other than those included in (3) below]:
a) Off Balance Sheet Exposure
(including interest accrued)
l First Loss - -
(a) Secured 16,80,011 13,18,806
l Others - -
(b) Unsecured 37,084 20,982
b) On Balance Sheet Exposure (3) Break up of Leased Assets and Stock on Hire and Other Assets counting towards AFC activities
l First Loss - Cash collateral - - (i) Lease Assets including Lease Rentals Accrued and Due: - -
l Others 47,502 58,364 (ii) Stock on Hire including Hire Charges under Sundry Debtors:
Book value of Assets sold 7,34,031 7,34,047 (a) Assets on hire - -
# excludes interest collected from customers on assigned assets (b) Repossessed assets - -
(iii) Other Loans counting towards AFC Activities
(a) Loans where assets have been repossessed (Net) - -
(b) Loans other than (a) above 48,66,838 42,00,485
163 164
Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED FEBRUARY 22, 2007: (Contd.) Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED FEBRUARY 22, 2007: (Contd.)
Category Amount (Net of provision for
SL Particulars Amount Amount
Non-performing assets)
No. Outstanding Overdue
Secured Unsecured Total
As at As at
March 31,2021 March 31,2020 (5) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above
As at March 31, 2021
(4) Break-up of Investments (net of provision for diminution in value):
1. Related Parties *
Current Investments: (a) Subsidiaries - 340 340
I Quoted: (b) Companies in the same Group - - -
(i) Shares: (a) Equity - - (c) Other Related Parties - - -
2. Other than Related Parties 65,46,850 36,744 65,83,594
(b) Preference - - Total 65,46,850 37,084 65,83,934
(ii) Debentures and Bonds - - As at March 31, 2020
(iii) Units of Mutual Funds - - 1. Related Parties *
(a) Subsidiaries - 700 700
(iv) Government Securities (Net of amortisation) - -
(b) Companies in the same Group - 340 340
(v) Others - - (c) Other Related Parties - - -
II Unquoted: 2. Other than Related Parties 55,19,291 19,942 55,39,233
(i) Shares: (a) Equity - - Total 55,19,291 20,982 55,40,273
* Related Parties are as identified in Note 37 above.
(b) Preference - - ` in lakhs
(ii) Debentures and Bonds - - Category Market value / Book Value
Break - up Value (Net of
(iii) Units of Mutual Funds - - or Fair Value or Provisioning)
(iv) Government Securities - - Net Asset Value
(6) Investor Group-wise Classification of all Investments (Current and Long Term) in Shares
Long-term Investments:
and Securities (both Quoted and Unquoted) :
I Quoted:
As at March 31, 2021
(i) Shares: (a) Equity - - 1. Related Parties *
(b) Preference - - (a) Subsidiaries 6,490 6,490
(ii) Debentures and Bonds - - (b) Companies in the Same Group - -
(c) Other Related Parties 800 800
(iii) Units of Mutual Funds - -
2. Other than Related Parties 1,54,592 1,54,592
(iv) Government Securities (Net of amortisation) - - Total 1,61,882 1,61,882
(v) Others - - As at March 31, 2020
II Unquoted: 1. Related Parties *
(a) Subsidiaries 6,490 6,490
(i) Shares: (a) Equity (Net of Provision for Diminution in Value of Investment) 7,292 7,292
(b) Companies in the Same Group - -
(b) Preference - -
(c) Other Related Parties 800 800
(ii) Debentures and Bonds - - 2. Other than Related Parties 2 2
(iii) Units of Mutual Funds - - Total 7,292 7,292
(iv) Government Securities 1,54,590 - ` in lakhs
(v) Others Category Amount Outstanding
As at As at
- Investment in Pass Through Certificates - -
March 31,2021 March 31,2020
- Investment property 13 14 (7) Other Information
(i) Gross Non-Performing Assets
a) With Related Parties * - -
b) With Others 2,70,501 2,16,331
(ii) Net Non-Performing Assets
b) With Others 1,50,752 1,26,502
(iii) Assets Acquired in Satisfaction of Debt
b) With Others - -
* Related Parties are as identified in Note 37 above.
165 166
Note : 51. A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR (PD) Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR
CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.)
i. Capital Adequacy Ratio ` in lakhs As at March 31, 2020 ` in lakhs
Particulars As at As at Particulars 1-7 8-14 15-30 1 to 2 2 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More Total
March 31,2021 March 31,2020 days days days months months months months years years than 5
Tier I Capital 9,39,023 8,05,516 Years
Tier II Capital 2,44,044 2,85,020 Liabilities
Total Capital 11,83,067 10,90,536 Borrowing from 27,178 4,780 40,245 22,412 73,890 2,69,063 7,22,468 23,66,850 7,33,032 67,390 43,27,308
Total Risk Weighted Assets 61,93,249 52,72,792 Banks
Capital Ratios Market Borrowings 1,202 1,254 39,416 79,621 1,14,958 14,050 2,09,589 3,97,641 1,17,230 1,98,274 11,73,235
Total 28,380 6,034 79,661 1,02,033 1,88,848 2,83,113 9,32,057 27,64,491 8,50,262 2,65,664 55,00,543
Tier I Capital as a Percentage of Total Risk Weighted Assets (%) 15.16% 15.28%
Assets
Tier II Capital as a Percentage of Total Risk Weighted Assets (%) 3.94% 5.41%
Advances (Net of 10,229 4,506 29,448 28,751 41,202 2,29,955 8,84,512 25,52,100 8,78,563 8,81,007 55,40,273
Total (%) 19.10% 20.69%
Provision for
Amount of Subordinated Debt raised as Tier – II capital during the year - 40,000
Non Performing
Amount raised by issue of Perpetual Debt instruments during the year 14,500 5,000
Assets)
ii. Investments ` in lakhs Investment (Net of - - - - - - - - - 7,306 7,306
Particulars As at As at Provision for
March 31,2021 March 31,2020 Diminution in Value
(1) Value of Investments of Investments)
(i) Gross Value of Investments
Total 10,229 4,506 29,448 28,751 41,202 2,29,955 8,84,512 25,52,100 8,78,563 8,88,313 55,47,579
(a) In India 1,62,024 7,435
(b) Outside India - -
(ii) Provisions for Depreciation
(a) In India (129) (129)
iv. Exposure to the Real Estate Sector, both Direct and Indirect
(b) Outside India - - ` in lakhs
(iii) Net Value of Investments Category As at As at
(a) In India 1,61,895 7,306 March 31,2021 March 31,2020
(b) Outside India - - (a) Direct Exposure (Net of Advances from Customers)
(2) Movement of provisions held towards depreciation on investments. (i) Residential Mortgages -
(i) Opening balance 129 129 Lending fully secured by mortgages on residential property that is or will be
(ii) Add:Provisions made during the year - -
occupied by the borrower or that is rented:
(iii) Less:Reversal of provision during the year - -
- individual housing loans upto ₹ 15 lakhs 3,11,572 1,71,278
(iv) Closing balance 129 129
- individual housing loans more than ₹ 15 lakhs 12,96,770 10,41,566
iii. Asset Liability Management (ii) Commercial Real Estate -
Maturity pattern of certain items of assets and liabilities - As at March 31, 2021 ` in lakhs Lending secured by mortgages on commercial real estates (office buildings,
Particulars 1-7 8-14 15-30 1 to 2 2 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More Total retails space, multipurpose commercial premises, multi-family residential
days days days months months months months years years than 5 buildings, multi-tenanted commercial premises, industrial or warehouse
Years
space, hotels, land acquisition, development and construction etc.).
Liabilities
- Fund Based 1,57,662 1,44,062
Borrowing from 49,041 6,295 81,993 90,975 1,83,820 6,78,690 5,98,952 22,75,340 6,52,340 94,795 47,12,241
Banks - Non Fund based - -
Market Borrowings - 62,676 50,363 1,37,029 1,65,477 1,09,063 1,82,136 5,85,067 1,49,388 2,13,575 16,54,774 (iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures -
Total 49,041 68,971 1,32,356 2,28,004 3,49,297 7,87,753 7,81,088 28,60,407 8,01,728 3,08,370 63,67,015 a. Residential - -
Assets b. Commercial Real Estate - -
Advances (Net of 37,947 36,598 89,998 1,10,950 1,21,854 6,09,041 9,65,475 26,34,376 9,18,458 10,59,237 65,83,934 (b) Indirect Exposure
Provision for Fund based and non-fund based exposures on National Housing Bank (NHB) - -
Non Performing and Housing Finance Companies (HFCs).
Assets) Total Exposure 17,66,004 13,56,906
Investment (Net of - - - - 1,135 3,722 4,857 19,428 19,428 1,13,312 1,61,882
Note:
Provision for
The above summary is prepared based on the information available with the Company.
Diminution in Value
of Investments)
Total 37,947 36,598 89,998 1,10,950 1,22,989 6,12,763 9,70,332 26,53,804 9,37,886 11,72,549 67,45,816
167 168
Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR Note : 51A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR
(PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.) (PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.)
v. Exposure to the Capital Market ` in lakhs ix. Concentration of Advances
Particulars As at As at ` in lakhs
March 31,2021 March 31,2020 Particulars As at As at
(i) Direct investment in equity shares, convertible bonds, convertible debentures and units of - - March 31,2021 March 31,2020
equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt; Total Advances to twenty largest borrowers 37,166 29,582
(ii) Advances against shares/bonds/debentures or other securities or on clean basis to individuals - - Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 0.54% 0.52%
for investment in shares (including IPOs/ ESOPs), convertible bonds, convertible debentures,
and units of equity-oriented mutual funds; x. Concentration of Exposures
(iii) Advances for any other purposes where shares or convertible bonds or convertible debentures 3,052 741 ` in lakhs
or units of equity oriented mutual funds are taken as primary security; Particulars As at As at
(iv) Advances for any other purposes to the extent secured by the collateral security of shares or - - March 31,2021 March 31,2020
convertible bonds or convertible debentures or units of equity oriented mutual funds Total Exposure to twenty largest borrowers/customers 37,802 29,582
i.e. where the primary security other than shares/convertible bonds /convertible debentures / Percentage of Exposures to twenty largest borrowers /Customers to Total Exposure of the NBFC 0.54% 0.52%
units of equity oriented mutual funds' does not fully cover the advances; on borrowers/customers.
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of - -
stock brokers and market makers; xi. Concentration of NPAs
` in lakhs
(vi) Loans sanctioned to corporates against the security of shares/bonds/ debentures or other - - Particulars As at As at
securities or on clean basis for meeting promoter's contribution to the equity of new March 31,2021 March 31,2020
companies in anticipation of raising resources; Total Exposure to top four NPA accounts 3,625 3,145
(vii) Bridge loans to companies against expected equity flows/issues; - -
(viii) All exposures to Venture Capital Funds (both registered and unregistered) - - xii. Sector-wise NPAs
Pending Disbursements 4,802 5,020
Sl. Sector Percentage Percentage
Total Exposure 7,854 5,761
No of NPAs to of NPAs to
Total Total
vi. Other Regulator Registration Advances Advances
in that in that
S. No. Regulator Registration no. sector as on sector as on
March 31,2021 March 31,2020
1 Ministry of Corporate Affairs CIN: L65993TN1978PLC007576
1. Agriculture & allied activities - 100%
2 Reserve Bank of India Certificate of Registration dt. 09/06/2011 No. 07-00306
2. MSME - -
vii. Penalties levied by the above Regulators - Nil 3. Corporate borrowers - -
4. Services - -
viii. Ratings assigned by Credit Rating Agencies 5. Unsecured personal loans - -
Particulars As at As at 6. Auto loans 3.08% 2.91%
March 31,2021 March 31,2020 7. Other loans 6.51% 6.39%
Commercial paper & Non- convertible Debentures – Short Term ICRA A1+, ICRA A1+,
CRISIL A1+ CRISIL A1+ xiii. Movement of NPAs
Working Capital Demand Loans ICRA A1+ ICRA A1+ ` in lakhs
Cash Credit ICRA AA+ ICRA AA+ Particulars March 31, 2021 March 31,2020
Bank Term Loans ICRA AA+ ICRA AA+ (i) Net NPAs to Net Advances(%) 2.25% 2.26%
Non-Convertible Debentures – Long term ICRA AA+, ICRA AA+, (ii) Movement of Gross NPA
IND AA+ IND AA+ (a) Opening balance 2,16,331 1,43,851
Subordinated Debt ICRA AA+, ICRA AA+, (b) Additions during the year 1,49,369 1,35,806
CARE AA+, CARE AA+, (c) Reductions during the year 95,199 63,326
CRISIL AA+, CRISIL AA+, (d) Closing balance 2,70,501 2,16,331
IND AA+ IND AA+ (iii) Movement of Net NPA
Perpetual Debt ICRA AA, ICRA AA, (a) Opening balance 1,26,501 89,210
CARE AA, CARE AA, (b) Additions during the year 85,237 85,654
IND AA IND AA (c) Reductions during the year 60,986 48,362
(d) Closing balance 1,50,752 1,26,502
169 170
Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR Note: 53. DISCLOSURE OF COMPARISON OF PROVISION AS PER IRAC NORMS AND ECL PURSUANT TO RBI CIRCULAR, VIDE
(PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.) DNBS.D.CC.NO.109/22.10.106/2019-20 DATED MARCH 13, 2020 FOR THE YEAR ENDED MARCH 31, 2021
Particulars March 31,2021 March 31,2020
Asset Asset Gross carrying Loss allowance Net carrying Provisions Difference
(iv) Movement of provisions for NPAs (excluding provisions on standard assets) classification classification amount as per (provision) amount required as between
(a) Opening balance 89,829 54,641 as per RBI as per Ind AS Ind As as required per IRACP Ind AS 109
(b) Provisions made during the year 64,133 50,152 Norms 109 under norms provisions and
(c) Write-off / write-back of excess provisions 34,213 14,964 Ind AS 109 IRACP norms
(d) Closing balance 1,19,749 89,829
(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)
Performing
xiv. Disclosure on Restructured Accounts Assets
` in lakhs
Standard Stage 1 61,34,764 53,730 60,81,034 22,910 30,820
Type of Restructuring asset classification details Standard Sub-standard Doubtful Loss Advances
Advances Advances Advances Stage 2 4,23,110 70,962 3,52,148 38,244 32,718
Restructured loans as Number of borrowers - 158 18 - Non Performing
on April 1, 2020 Amount Outstanding - 2,415 357 - Assets (NPA)
Provision thereon - 697 128 - Substandard Stage 3 1,35,840 47,002 88,838 13,140 33,862
Fresh Restructured during Number of borrowers 13,541 966 3 - Doubtful - Stage 3 57,540 25,787 31,753 10,028 15,759
the year Amount Outstanding 1,31,039 8,839 30 - upto 1 year
Provision thereon 16,206 1,336 0 - 1 - 3 years Stage 3 46,231 26,427 19,804 13,933 12,494
Upgradations to restructured Number of borrowers 804 3 - - More than 3 Stage 3 27,578 17,397 10,181 15,425 1,972
category Amount Outstanding 6,919 29 - - years
Provision thereon 901 11 - - Loss Stage 3 3,312 3,136 176 2,939 197
Restructured loans ceases to Number of borrowers - - - Subtotal for NPA 2,70,501 1,19,749 1,50,752 55,465 64,284
attract higher provision or Amount Outstanding - - -
Other items such Stage 1 1,24,191 104 1,24,087 - 104
additional risk weight at the Provision thereon - - -
as guarantees,
end of year
loan commitment Stage 2 - - - - -
Downgrade of restructured Number of borrowers - 356 7 -
etc., which are in
accounts during the year Amount Outstanding - 3,567 101 -
Provision thereon - 828 46 - the scope of Stage 3 - - - - -
Write-off of restructured Number of borrowers 16 29 - - Ind AS 109 but
accounts during the year Amount Outstanding 180 488 - - not covered under
Provision thereon 31 177 - - Income Recognition,
Restructured loans as Number of borrowers 13,702 641 - - Asset Classification
on March 31, 2021 Amount Outstanding 1,32,153 7,052 - - and Provisioning
Provision thereon 18,700 1,999 - - (IRACP) norms
Subtotal 1,24,191 104 1,24,087 - 104
xv. Customer Complaints
No. of Complaints Stage 1 62,58,955 53,834 62,05,121 22,910 30,924
Particulars March 31,2021 March 31,2020 Total Stage 2 4,23,110 70,962 3,52,148 38,244 32,718
Stage 3 2,70,501 1,19,749 1,50,752 55,465 64,284
(a) Pending as at beginning of the year 8 11
Total 69,52,566 2,44,545 67,08,021 1,16,619 1,27,926
(b) Received during the year 1,169 1,331
(c) Redressed during the year 1,177 1,334
(d) Pending as at end of the year 0 8 As required by the RBI Notification dated March 31, 2020, the Company has complied with the requirements of Ind AS and the Guidelines and
Policies approved by the Board in recognition of impairment of financial instruments. The overall impairment provision made under Ind AS
Note: The above summary is prepared based on the information available with the Company and relied upon by the Auditors.
is higher than the prudential floor (including the provision requirement specified in the notification referred to in Note 9 of this statement )
prescribed by RBI
Note : 52. DISCLOSURE OF FRAUDS REPORTED DURING THE YEAR ENDED MARCH 31, 2021 VIDE DNBS. PD. CC NO. 256/ 03.10.042/
2011-12 DATED MARCH 02, 2012
There were 66 cases (March 31, 2020 - 115 cases) of frauds amounting to ₹ 731 lakhs (March 31, 2020 - ₹ 668 lakhs) reported during the
year. The Company has recovered an amount of ₹ 45 lakhs (March 31, 2020 - ₹ 48 lakhs). The un-recovered amounts are either pending
settlement with the insurance companies or have been fully provided/ written off.
171 172
Note : 54. DISCLOSURE ON MORATORIUM – COVID 19 REGULATORY PACKAGE – ASSET CLASSIFICATION AND PROVISIONING Note : 56 LIQUIDITY COVERAGE RATIO
FOR THE YEAR ENDED MARCH 31, 2021 IN PURSUANT TO THE NOTIFICATION VIDE: DOR.NO.BP.BC.63/21.04.048/2019-20 DATED The Liquidity Coverage Ratio (LCR) is a key reform recommended by the Basel Committee for a resilient and stable financial sector.
APRIL 17, 2020.
In order to complement the “Sound Principles of Liquidity Risk Management and Supervision” introduced in 2008 by the Committee, the
` in lakhs Committee has further strengthened its liquidity framework by developing two minimum standards for funding liquidity. One of these
Particulars March 31,2021 March 31,2020
standards is the Liquidity Coverage Ratio and has as its objective the promotion of short-term resilience of the liquidity risk profile of
Amount in SMA/overdue categories as of February 29, 2020 13,20,164 13,20,164 financial institutions by ensuring that it has sufficient High Quality Liquid Assets (HQLA) to survive a significant stress scenario lasting for
Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended, 11,67,712 11,73,298 one month. The Liquidity Coverage Ratio is expected to improve the financial sector’s ability to absorb shocks arising from financial and
in terms of paragraph 2 and 3 (as of February 29, 2020) economic stress, whatever the source, thus reducing the risk of spillover from the financial sector to the real economy.
Respective amount where asset classification benefits is extended (net of accounts Nil 1,01,716
Compliance with the prescribed Liquidity Coverage Ratio ensures that Non-Banking Financial Companies have an adequate stock of
which have moved out of SMA/overdue category during the moratorium period)*
unencumbered High-quality liquid assets (HQLA) that can be converted easily and immediately into cash to meet their liquidity needs
Provisions made during the period (As per para 4, Applicable to NBFC’s covered under Ind AS)** Nil 12,377
for a 30 calendar day liquidity stress scenario. The cash outflows and inflows have been stressed by 115% and 75% of their respective
Provisions adjusted against slippages in terms of paragraph 6 of the circular Nil -
original values. The key drivers on the inflow side are the expected collections from the performing assets of the company and on the
Residual provision Nil 12,377
outflow side the scheduled maturities.
*there are nil accounts where asset classification benefit has been extended as on March 31, 2021. Post the moratorium period, the movement
The RBI notified the Liquidity Coverage Ratio as applicable for Non-Banking Financial Companies with effect from December 1, 2020 (vide
of aging has been at actuals.
circular dated November 4, 2019 on Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment
** The above provision does not include management overlay provision of ` 1,967 lakhs as of March 31, 2020.
Companies). The company has been monitoring liquidity from the Liquidity Coverage Ratio standpoint from Q1 of the financial year, for
Note : 55 DISCLOSURE ON ONE-TIME RESTRUCTURING FOR THE YEAR ENDED MARCH 31, 2021 PURSUANT TO RBI the purpose of disclosure, the company has reported Liquidity Coverage Ratio from December 1, 2020, the date on which the regulation
NOTIFICATION RBI/2020-21/16/DOR.NO.BP.BC/3/ 21.04.048/2020-21 DATED AUGUST 6, 2020. came into force. The disclosures on Liquidity coverage ratio are made for Q3 (comprising only December 2020) and Q4 (comprising
January, February and March 2021). The movements in the drivers of Liquidity Coverage Ratio outlined in the following paragraphs have
Type of borrower No. of accounts Exposure to Of (B) aggregate Additional funding Increase in provisions
to be read in this context.
where resolution account mentioned amount of debt that sanction, if any, on account of
plan has been in (A) before was converted into including between implementation of The Liquidity Coverage Ratio maintained by the company for the quarters ended December 31, 2020 and March 31, 2021 stand at 168%
implemented implementation of other securities invocation of the resolution plan and 99% respectively. The quarterly Liquidity Coverage Ratio is based on the simple average of monthly observations for each quarter
under this window the plan (B) the plan and - ` in lakhs and are well above the minimum regulatory requirement of 50%.
(A) - ` in lakhs implementation
The average High quality liquid assets held in Q3 and Q4 20-21 was ` 1,52,770 lakhs and ` 1,48,093 lakhs respectively and was entirely
Personal Loans 1,504 28,089 - - 1,882 held in Government Securities which are classified as Level 1 assets with no haircut.
Corporate persons # - - - - -
The net cash outflow position has gone up from ` 3,64,789 lakhs in Q3 to ` 5,98,662 lakhs in Q4. This increase of ` 2,33,873 lakhs is
Of which MSME - - - - -
Others - - - - - on account of Q4 being a heavy month in terms of loan maturities. The net cash inflow position reduced marginally from ` 5,77,852
Total 1,504 28,089 - - 1,882 lakhs in Q3 to ` 5,40,941 lakhs in Q4 driven mainly by investment surpluses in the form of term deposits and current account balances.
Contracted undrawn commitments with customers constitute 18% of the stressed cash outflows. Contingent liabilities which are likely
# As defined in section 3(7) of Insolvency and Bankruptcy Code 2016.
to materialize in 30 days constitute 2% of the stressed cash outflow. The company has fully hedged all its foreign currency borrowings at
b) enterprises (MSME ) sector – Restructuring of advances having exposure less than or equal to ` 25 crores the time of drawal of each loan. Hence there is no risk to the company on account of derivatives or collateral calls thereof or mismatch
in currency.
Type of borrower No. of accounts where resolution plan Exposure to account mentioned in (A)
has been implemented under this before implementation of the plan (B) Liquidity Management of the company is supervised by the Asset Liability Committee. The management is of the view that the company
window (A) - ` in lakhs has in place robust processes to monitor and manage liquidity risks and sufficient liquidity cover to meet its likely future short term
requirements.
MSMEs 12,610 1,18,178
The company has a diversified mix of borrowings with respect to the source, type of instrument, tenor and nature of security. The Asset
Exposure means principal outstanding and overdues.
Liability Committee constantly reviews and monitors the funding mix and ensures the optimum mix of funds based on the cash flow
requirements, market conditions and keeping the interest rate view in consideration. Additionally, the Company has lines of credit that
it can access to meet liquidity needs.
These are reviewed by the Asset Liability Committee (ALCO) on a monthly basis. The Asset Liability Committee provides strategic
direction and guidance on liquidity risk management. A sub-committee of the Asset Liability Committee, comprising members from the
Treasury and Risk functions, monitor liquidity risks on a weekly basis and decisions are taken on the funding plan and levels of investible
surplus, from the Asset Liability Management perspective. This sets the boundaries for daily cash flow management.
173 174
Notes forming part of the Standalone Ind AS Financial Statements (Contd.) Independent Auditor’s Report
For the year ended March 31, 2021
Note : 56 LIQUIDITY COVERAGE RATIO To the Members of Cholamandalam Investment and Finance Company Limited
` in lakhs
Particulars Q3 FY21-Avg Q4 FY21-Avg Report on the Audit of the Consolidated Ind AS Financial Statements

Opinion
High Quality Liquid Assets 1,52,770 1,48,093
Cash Outflows: We have audited the accompanying Consolidated Ind AS Financial Statements of Cholamandalam Investment And Finance Company
Deposits - - Limited (hereinafter referred to as “the Holding Company”), its subsidiaries (the Holding Company and its subsidiaries together referred to
Un-Secured Borrowing 92,000 1,03,450 as “the Group”) and its associates comprising of the consolidated Balance sheet as at March 31 2021, the consolidated Statement of Profit
Secured Borrowing (Incl. Securitisation Payout) 89,685 2,78,579 and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the consolidated Statement of Changes in
Additional Requirements, of which Equity for the year then ended, and notes to the Consolidated Ind AS Financial Statements, including a summary of significant accounting
(i) Outflows related to derivatives exposures and other collateral requirements. - - policies and other explanatory information (hereinafter referred to as “the Consolidated Ind AS Financial Statements ”).
(ii) Outflows related to loss of funding on debt products - - In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Ind AS
(iii) Credit and Liquidity facilities - - Financial Statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and
Other Contractual funding obligations 1,73,299 2,05,635 give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the
Other Contingent funding obligations 9,805 10,999 Group and its associates as at March 31, 2021, their consolidated profit including other comprehensive income, their consolidated cash
Total Cash outflows 3,64,789 5,98,662 flows and the consolidated statement of changes in equity for the year ended on that date.
Cash Inflows
Secured Lending - - Basis for Opinion
Inflows from fully performing exposures 2,16,065 2,18,462 We conducted our audit of the Consolidated Ind AS Financial Statements in accordance with the Standards on Auditing (SAs), as specified
Other cash inflows 3,61,787 3,22,479 under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for
Total Cash Inflows 5,77,852 5,40,941 the Audit of the Consolidated Ind AS Financial Statements ’ section of our report. We are independent of the Group and its associates
TOTAL HIGH QUALITY LIQUID ASSETS 1,52,770 1,48,093 in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements
TOTAL NET CASH FLOWS 91,197 1,49,666 that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled
LIQUIDITY COVERAGE RATIO (%) 168% 99% our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Ind AS Financial Statements.
Note: 57 PRIOR PERIOD INFORMATION Emphasis of Matter

Prior period figures have been regrouped, wherever necessary, to conform to the current period presentation. We draw attention to Note 2.2 to the accompanying Consolidated Ind AS financial statements, which describes the impact of COVID-19
pandemic, and its possible consequential implications on the Company’s operations and financial metrics, including the Company’s
estimates of impairment of loans and that such estimates may be affected by the severity and duration of the pandemic. Our opinion
is not modified in respect of this matter.
For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors Key Audit Matters
ICAI Firm Regn No.101049W/E300004 Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Ind
AS Financial Statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the
per Aravind K Ravindra Kumar Kundu Vellayan Subbiah Consolidated Ind AS Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
Partner Executive Director Chairman these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the
responsibilities described in the Auditor’s responsibilities for the audit of the Consolidated Ind AS Financial Statements section of our
Place : Chennai Company Secretary Chief Financial Officer report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the Consolidated Ind AS Financial Statements . The results of audit procedures
performed by us, including those procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying Consolidated Ind AS Financial Statements .
Key audit matters How our audit addressed the key audit matter
Impairment of Financial Assets based on Expected Credit Loss (‘ECL’) (as described in Note 5.3 of the Consolidated Ind AS Financial
Statements)
Financial instruments, which include loans to customers, • Read and assessed the Group’s impairment provision policy
represents a significant portion of the total assets of the Group. and their compliance with Ind AS 109 and the governance
The Group has loans aggregating Rs 68,28,375 lakhs as at March framework approved by the Board of Directors pursuant to
31, 2021. Reserve Bank of India guidelines issued on 13 March 2020.
Estimates regarding the impairment provision against financial •
Read and assessed the Group’s policy with respect to
assets are based on the expected credit loss model developed by moratorium and one-time restructuring pursuant to the RBI
the Group based on the guiding principles prescribed under Ind circular and tested the implementation of such policy on a
AS 109. sample basis
175 176

Key audit matters How our audit addressed the key audit matter Key audit matters How our audit addressed the key audit matter
As explained in the notes to the financial statements for the •
Understood the Group’s key credit processes comprising Audit in an Information Technology (IT) enabled environment – including considerations on exceptions identified in IT
year ended March 31, 2021, the impairment provision based on granting, recording and monitoring of loans as well as environment
the expected credit loss model requires the management of the impairment provisioning. The Group has information technology applications which are In assessing the reliability of electronic data processing, we
Group to make significant judgments in connection with related • Read and assessed the Company’s impairment provisioning used across various class of transactions in its operations including involved specialized IT auditors in our audit team. Our audit
computation. These include: policy as per Ind AS 109; automated and IT dependent manual controls that are embedded procedures focused on the IT infrastructure and applications
in them. relevant to financial reporting:
(a) Segmentation of the loan portfolio into homogenous pool of • Obtained an understanding of the Group’s Expected Credit
Due to the pervasive nature and complexity of the Group’s IT • Assessing the information systems and the applications that
borrowers; Loss (‘ECL’) methodology, the underlying assumptions and environment, we place significant emphasis on the information is available in the Group in two phases: (i) IT General Controls
performed sample tests to assess the staging of outstanding systems, the controls, and process around such information and (ii) Application level embedded controls;
(b) Identification of exposures where there is a significant increase
exposures; systems and the usage of information from such systems for the
in credit risk and those that are credit impaired; • The aspects covered in the IT systems General Control audit
• Tested the ECL model, including assumptions and underlying purpose of financial reporting by the management for our audit.
were (i) User Access Management (ii) Change Management
(c) Determination of the 12 month and life-time probability of Accordingly, this has been considered as a key audit matter.
computation. (iii) Other related ITGCs; - to understand the design and the
default for each of the segments identified; and . operating effectiveness of such controls in the system;
• Assessed the Exposure at Default used in the impairment
(d) Loss given default for various exposures based on past trends •
Understanding of the changes that were made to the IT
calculations on a test basis;
/ experience, management estimates etc., landscape during the audit period and assessing changes that
• Obtained an understanding of the basis and methodology have impact on financial reporting;
Additionally, the economic and business consequences of the adopted by management to determine 12 month and life-time
COVID 19 pandemic as described in Note 2.2 to the Consolidated • Performed tests of controls (including over compensatory
probability of defaults for various homogenous segments and
controls wherever applicable) on the IT Application controls
Ind AS financial statements, slowdown of economic activity, performed test checks; and IT dependent manual controls in the system.
moratoriums granted to borrowers, the related regulatory
• Obtained an understanding of the basis and methodology • Wherever applicable, we also assessed through direct sample
directives and also the applicable accounting directions, further
adopted by management to determine Loss Given Defaults tests, the information produced from these systems which
affect loan loss provisioning under the ECL approach. for various homogenous segments based on past recovery were relied upon for our audit.
Note 5.3 to the Consolidated Ind AS Financial Statements explains experience, qualitative factors etc., and performed test checks;
Pending litigations with tax authorities (as described in Note 40(a) of the Consolidated Ind AS Financial Statements)
the various matters that the management has considered for • Assessed the items of loans, credit related contingent items as The Group operates in a complex tax environment and is required In assessing the exposure of the Group for the tax litigations, we
developing this expected credit loss model. at the reporting date which are considered in the impairment have performed the following procedures:
to discharge direct and indirect tax obligations under various
As at March 31, 2021, the Group has made a provision for computation as at the reporting date; • Obtained an understanding of the process laid down by the
legislations such as Income Tax Act, 1961, the Finance Act, 1994
impairment loss aggregating ` 2,44,441 Lakhs against the loans •
Assessed the data used in the impairment computation Goods and Services Tax Acts and VAT Acts of various states, as may management for performing their assessment taking into
outstanding. Due to the significance of the judgments used in (including the data integrity of information extracted from the consideration past legal precedents, changes in laws and
be applicable regulations, expert opinions obtained from external tax / legal
both classification of loans into various stages as well as the Group’s IT systems); experts (as applicable);
The tax authorities under these legislations have raised certain
computation of expected credit losses on such financial assets as •
Assessed and tested the inputs used in the impairment tax demands on the Group in respect of the past periods. The • Assessed the processes and entity level controls established
per Ind AS 109, this has been considered as key audit matter. computation (including the data integrity of information by the Group to ensure completeness of information with
Group has disputed such demands and has appealed against
extracted from the Group’s IT systems); respect to tax litigations;
them at appropriate forums. As at March 31, 2021 the Group has
•
Enquired with the management regarding significant an amount of ` 66,928 Lakhs. pertaining to various pending tax •
Along with our tax experts, we undertook the following
procedures:
judgments and estimates involved in the impairment litigations.
computation and additional management overlay provision •
Reading communications with relevant tax authorities
Ind AS 37 requires the Group to perform an assessment of the including notices, demands, orders, etc., relevant to
arising from the effects of the COVID-19 pandemic, and
probability of economic outflow on account of such disputed tax the pending litigations, as made available to us by the
evaluated the reasonableness thereof management;
matters and determine whether any particular obligation needs
• Assessed analytical reviews of disaggregated data to observe to be recorded as a provision in the books of account or to be •
Testing the accuracy of disputed amounts from the
any unusual trends warranting additional audit procedures; underlying communications received from tax authorities
disclosed as a contingent liability. Considering the significant
and and responses filed by the Group;
degree of judgement applied by the management in making such
• Considered the submissions made to appellate authorities
•
Read the financial statement disclosures in respect of assessments and the resultant impact on the financial statements,
and expert opinions obtained by the Group from external
impairment losses on financial assets, including the specific we have considered it to be a key audit matter. tax / legal experts (wherever applicable) which form the
disclosures made with regard to the impact of COVID-19 on basis for management’s assessment;
the ECL estimation. •
Assessed the positions taken by the management in
the light of the aforesaid information and based on the
examination of the matters by our tax experts.
•
Read the disclosures included in the Consolidate Ind AS
Financial Statements in this regard.
177 178

Other Information Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
•
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the
the Holding Company has adequate internal financial controls with reference to financial statements in place and the
information included in the Annual report, but does not include the Consolidated Ind AS Financial Statements and our
operating effectiveness of such controls.
auditor’s report thereon.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
•
Our opinion on the Consolidated Ind AS Financial Statements does not cover the other information and we do not express disclosures made by management.
any form of assurance conclusion thereon.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
•
In connection with our audit of the Consolidated Ind AS Financial Statements , our responsibility is to read the other evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
information and, in doing so, consider whether such other information is materially inconsistent with the Consolidated on the ability of the Group and its associates to continue as a going concern. If we conclude that a material uncertainty
Ind AS Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Ind AS
based on the work we have performed, we conclude that there is a material misstatement of this other information, we are Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
required to report that fact. We have nothing to report in this regard. audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group
Responsibilities of Management for the Consolidated Ind AS Financial Statements and its associates to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Consolidated Ind AS Financial Statements , including
•
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these Consolidated
the disclosures, and whether the Consolidated Ind AS Financial Statements represent the underlying transactions and
Ind AS Financial Statements in terms of the requirements of the Act that give a true and fair view of the consolidated
events in a manner that achieves fair presentation.
financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and
consolidated statement of changes in equity of the Group and its associates in accordance with the accounting principles Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
•
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act within the Group and its associates of which we are the independent auditors to express an opinion on the Consolidated
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. The respective Board of Directors of the Ind AS Financial Statements . We are responsible for the direction, supervision and performance of the audit of the
companies included in the Group and of its associates are responsible for maintenance of adequate accounting records in financial statements of such entities included in the Consolidated Financial Statements of which we are the independent
accordance with the provisions of the Act for safeguarding of the assets of the Group and of its associates and for preventing auditors. For the other entities included in the Consolidated Ind AS Financial Statements , which have been audited
and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits
judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate carried out by them. We remain solely responsible for our audit opinion.
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Consolidated Ind AS Financial Statements that give a true and We communicate with those charged with governance of the Holding Company and such other entities included in the
fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of Consolidated Ind AS Financial Statements of which we are the independent auditors regarding, among other matters, the
preparation of the Consolidated Ind AS Financial Statements by the Directors of the Holding Company, as aforesaid. planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
In preparing the Consolidated Ind AS Financial Statements , the Board of Directors of respective companies included in the
Group and of its associates are responsible for assessing the ability of the Group and of its associates to continue as a going We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless regarding independence, and to communicate with them all relationships and other matters that may reasonably be
management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. thought to bear on our independence, and where applicable, related safeguards.
Those respective Board of Directors of the companies included in the Group and of its associates are also responsible for From the matters communicated with those charged with governance, we determine those matters that were of most
overseeing the financial reporting process of the Group and of its associates. significance in the audit of the Consolidated Ind AS Financial Statements for the financial year ended March 31, 2021 and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS Financial Statements as a whole communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. public interest benefits of such communication.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs Other Matter
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users (a) The consolidated Ind AS financial statements include the Group’s share of net loss of ` 53 lakhs for the year ended
taken on the basis of these Consolidated Ind AS Financial Statements . March 31, 2021, as considered in the consolidated financial statements, in respect of two associates whose financial
statements and other financial information have not been audited and whose unaudited financial statements, other
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism unaudited financial information have been furnished to us by the Management. Our opinion, in so far as it relates to the
throughout the audit. We also: amounts and disclosures included in respect of the associates, and our report in terms of sub-sections (3) of Section 143
Identify and assess the risks of material misstatement of the Consolidated Ind AS Financial Statements , whether due
• of the Act in so far as it relates to the aforesaid associates, is based solely on such unaudited financial statements and
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is other unaudited financial information. In our opinion and according to the information and explanations given to us by
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting the Management, these financial statements and other financial information are not material to the Group. Our opinion
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, above on the Consolidated Ind AS Financial Statements , and our report on Other Legal and Regulatory Requirements
misrepresentations, or the override of internal control. below, is not modified in respect of the above matter.
179 180
Independent Auditor’s Report (Contd.) Annexure 1 to the Independent Auditor’s Report of even date on
Report on Other Legal and Regulatory Requirements
the Consolidated ind AS Financial Statements of Cholamandalam
As required by Section 143(3) of the Act, we report, to the extent applicable, that:
Investment and Finance Company Limted
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid Consolidated Ind AS Financial Statements ; Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the (“the Act”)
financial statements have been kept so far as it appears from our examination of those books and reports of the other
auditors; In conjunction with our audit of the consolidated Ind AS financial statements of Cholamandalam Investment and Finance Company Limited
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of Other as of and for the year ended March 31, 2021, we have audited the internal financial controls over financial reporting of Cholamandalam
Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity Investment and Finance Company Limited (hereinafter referred to as the “Holding Company”) and its subsidiary companies, which are
dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the companies incorporated in India, as of that date.
Consolidated Ind AS Financial Statements ;
Management’s Responsibility for Internal Financial Controls
(d) In our opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; The respective Board of Directors of the Holding Company, its subsidiary companies, which are companies incorporated in India, are
(e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2021 responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors who are established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit
appointed under Section 139 of the Act, of its subsidiary companies and associates , none of the directors of the Group’s of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities
companies and its associates, incorporated in India, is disqualified as on March 31, 2021 from being appointed as a include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring
director in terms of Section 164 (2) of the Act;
the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets,
(f ) With respect to the adequacy and the operating effectiveness of the internal financial controls with reference to
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation
Consolidated Ind AS Financial Statements of the Holding Company and its subsidiary companies and associate companies
incorporated in India, refer to our separate Report in “Annexure 1” to this report; of reliable financial information, as required under the Act.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Holding Auditor’s Responsibility
Company, its subsidiaries and associates incorporated in India to their directors in accordance with the provisions of
Our responsibility is to express an opinion on the company's internal financial controls over financial reporting with reference to these
section 197 read with Schedule V to the Act;
consolidated Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, both, issued by Institute of
(Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the
explanations given to us Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of
i. The Consolidated Ind AS Financial Statements disclose the impact of pending litigations on its consolidated financial internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
position of the Group and its associates in its Consolidated Ind AS Financial Statements – Refer Note 40(a) to the the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these
Consolidated Ind AS Financial Statements ; consolidated Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
ii. Provision has been made in the Consolidated Ind AS Financial Statements , as required under the applicable law or Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial
accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts –
reporting with reference to these consolidated Ind AS financial statements and their operating effectiveness. Our audit of internal financial
Refer Note 9 and 11 to the Consolidated Ind AS Financial Statements in respect of such items as it relates to the Group
and its associates and controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference
to these consolidated Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Holding Company, its subsidiaries and associates incorporated in India during the year ended and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,
March 31, 2021. including the assessment of the risks of material misstatement of the Consolidated Ind AS financial statements, whether due to fraud or
error.
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the internal
ICAI Firm Registration Number: 101049W/E300004 financial controls over financial reporting with reference to these consolidated Ind AS financial statements.
per Aravind K
Partner
UDIN: 21221268AAAACR7600
Place of Signature: Chennai
Date: May 7, 2021
181 182
Annexure 1 to the Independent Auditor’s Report of even date on Consolidated Ind AS Balance Sheet
the Consolidated ind AS Financial Statements of Cholamandalam As at March 31, 2021
` in lakhs
Investment and Finance Company Limted (Contd.)

Note No. As at
March 31,2021
As at
March 31,2020
ASSETS
Financial Assets
Cash and cash equivalents 7 1,59,323 3,49,514
Meaning of Internal Financial Controls Over Financial Reporting with Reference to these Consolidated Ind AS Financial Statements Bank balances other than cash and cash equivalents 8 3,68,654 3,50,560
Derivative financial instruments 9 4,587 11,420
A company's internal financial control over financial reporting with reference to these consolidated Ind AS financial statements is a process Receivables 10
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for i) Trade receivables 5,660 3,019
ii) Other receivables 4,211 3,536
external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial Loans 11 65,83,934 55,39,573
reporting with reference to these consolidated Ind AS financial statements includes those policies and procedures that (1) pertain to the Investments
i) Associate 46 2,424 2,477
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; ii) Others 12 1,55,925 793
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance Other financial assets 13 59,445 43,913
73,44,163 63,04,805
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with Non- Financial Assets
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection Current tax assets (Net) 14,767 15,947
Deferred tax assets (Net) 14 76,897 52,747
of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Investment property 15 13 14
Property, plant and equipment 16 20,826 26,236
Inherent Limitations of Internal Financial Controls Over Financial Reporting with Reference to these Consolidated Ind AS Financial Intangible assets under development 991 1,060
Statements Other intangible assets 17 1,920 2,067
Other non-financial assets 18 4,839 2,962
Because of the inherent limitations of internal financial controls over financial reporting with reference to these consolidated Ind AS 1,20,253 1,01,033
TOTAL ASSETS 74,64,416 64,05,838
financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to
LIABILITIES AND EQUITY
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting Financial Liabilities
Derivative financial instruments 9 12,742 -
with reference to these consolidated Ind AS financial statements to future periods are subject to the risk that the internal financial control
Payables
over financial reporting with reference to these consolidated Ind AS financial statements may become inadequate because of changes in (I) Trade payables
i) Total outstanding dues of micro and small enterprises 36 - 70
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ii) Total outstanding dues of creditors other than micro and small enterprises 27,930 21,977
(II) Other payables
Opinion
i) Total outstanding dues of micro and small enterprises - -
In our opinion, the Holding Company and its subsidiary companies, which are companies incorporated in India, have, maintained in ii) Total outstanding dues of creditors other than micro and small enterprises 20,531 9,949
Debt securities 19 12,35,767 7,32,683
all material respects, adequate internal financial controls over financial reporting with reference to these consolidated Ind AS financial Borrowings(Other than Debt Securities) 20 47,18,226 43,27,308
statements and such internal financial controls over financial reporting with reference to these consolidated Ind AS financial statements Subordinated Liabilities 21 4,19,006 4,40,552
Other Financial Liabilities 22 50,268 39,485
were operating effectively as at March 31,2021, based on the internal control over financial reporting criteria established by the Holding 64,84,470 55,72,024
Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Non-Financial Liabilities
Current tax Liabilities 4,225 -
Over Financial Reporting issued by the Institute of Chartered Accountants of India. Provisions 23 11,045 9,151
Other non-financial liabilities 24 4,696 4,677
19,966 13,828
Equity
For S.R. BATLIBOI & ASSOCIATES LLP Equity share capital 25 16,407 16,398
Chartered Accountants Other equity 26 9,43,573 8,03,588
Total Equity 9,59,980 8,19,986
ICAI Firm Registration Number: 101049W/E300004 TOTAL LIABILITIES AND EQUITY 74,64,416 64,05,838
The accompanying notes are integral part of the Consolidated Ind AS financial statements
per Aravind K
Partner As per our report of even date
Membership Number: 221268 For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors
Place of Signature: Chennai Chartered Accountants
Date: May 7, 2021 ICAI Firm Regn No.101049W/E300004


183 184
earnings Payments Instruments portion of attributable

` in lakhs
` in lakhs
15,643
755
16,398
9
16,407
8,03,588
1,52,086
(100)
(2,825)
(10,656)
1,480
-
-
9,43,573
6,05,229
1,05,372
(379)
(6,595)
(20,033)
1,20,915
(921)
-
8,03,588
Vellayan Subbiah
Chairman
D. Arul Selvan
Chief Financial Officer
Consolidated Ind AS Statement of Profit and Loss
to equity
holders
Total
hedge
for the year ended March 31, 2021
` in lakhs
-
-
-
-
-
-

(3,383)
(5,971)
(7,179)
(10,562)
(1,208)
(7,179)
comprehensive
Note No. Year ended Year ended
-
-
-
-
reserve through other cashflow
Effective
comprehensive income
March 31,2021 March 31,2020
Items of other
- Interest income 27A 9,22,477 8,12,465
- Net gain on derecognition of financial instruments - 24,727
-
-
-
-
-
-

558
495
561
(624)
(63)
(63)
under amortised cost category
-
-
-
-
Ravindra Kumar Kundu
Executive Director
P. Sujatha
Company Secretary
Equity
income
- Fee & commission income 27B 26,939 24,870
- Net gain on fair value change on financial instrument 27C 487 1,569
Consolidated Ind AS Statement of Changes in Equity for the year ended March 31, 2021
- Sale of services 27D 8,037 7,570
pending
allotment
Total Revenue from operations (I) 9,57,940 8,71,201
-
-
-
-
-
-
Other income (II) 28 438 62
Retained Share based
427
1,156
3,017
3,444
1,861
3,017
Total Income (III) = (I) + (II) 9,58,378 8,71,263
Balances as on March 31, 2020
Balances as on March 31, 2021

Expenses
- Finance costs 29 4,57,554 4,59,170
- Impairment of financial instruments 30 1,32,211 89,735
- Employee benefits expense 31 79,184 70,032
(1,06,000)
-
-
1,52,086
1,05,372
89,808
76,848
89,808
(100)
(10,656)
-
(379)
(20,033)
(72,000)
1,25,138
- Depreciation and amortisation expense 15, 16 & 17 10,230 11,125
- Other expenses 32 74,409 82,379
Account
Balances as on April 1, 2019
Add: Issue of share capital
Add: Issue of share capital

Total Expenses (IV) 7,53,588 7,12,441
Profit before tax (V) = (III) - (IV) 2,04,790 1,58,822
Tax expense/(benefit) 34
75,000
Reserve
General
-
-
-
-
-
-
-
136
50,000
3,00,967
3,76,103
2,50,967
3,00,967
- Current tax
- Pertaining to profit for the current period 75,320 56,791
- Adjustment of tax relating to earlier periods 392 3
- Deferred tax 14 (23,061) (3,386)
Net tax expense (VI) 52,651 53,408
Capital Securities
Reserve Redemption Premium
-
-
-
-
-
-
-
Profit for the period - A = (V) - (VI) 1,52,139 1,05,414
927
1,19,749
2,85,678
2,86,605
1,66,850
2,85,678
(921)
Share of loss from associate (net of tax) 46 (53) (42)
Reserve and Surplus

Profit for the period 1,52,086 1,05,372
Other Comprehensive income:
i) Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Reserve
Re-measurement gains / (losses) on defined benefit obligations (net) 37 (133) (506)
-
-
-
-
-
-
3,300
3,300
3,300
3,300
Utilisation of securities premium
-
-
-
-
Income tax impact 33 127
The accompanying notes are integral part of the Consolidated IND AS financial statements
Net (Loss) / gain on equity instruments designated at FVOCI for the year 558 (624)
Income tax impact - -
ii) Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Capital
Cashflow Hedge Reserve 45.8 (4,521) (9,232)
-
-
-
-
-
-
4
Income tax impact 1,138 3,261
-
-
-
-
money
Other comprehensive income/(loss) net of tax for the period (B) (2,925) (6,974)
Total Comprehensive Income net of tax (A) + (B) 1,49,161 98,398
Profit for the period attributable to :
- Equity holders of the Parent Company 1,52,086 1,05,372
Statutory
Reserve
-
-
-
-
31,000
-
-
-
-
-
Partner
Date : May 7, 2021

Place : Chennai

- Non-Controlling Interest - -
22,000
1,28,046
1,06,046
1,28,046
1,59,046
Other Comprehensive Income (net of tax) for the period attributable to :
- Equity holders of the Parent Company (2,925) (6,974)
Total Comprehensive Income for the period attributable to :
application
- Equity holders of the Parent Company 1,49,161 98,398
-
-
-
-
-
-
-
-
Share
10
10
10
(10)
Earnings per equity share of ₹ 2 each 33
- Basic (₹) 18.55 13.39
Closing balance as at March 31,2021
Closing balance as at March 31,2020

Opening Balance as at April 01, 2020
Opening Balance as at April 01, 2019

- Diluted (₹) 18.52 13.37
For S.R. Batliboi & Associates LLP

Remeasurement of defined benefit
b) Other Equity (Refer Note 26)
benefit plans and fair value change

The accompanying notes are integral part of the financial statements.
Transfer to reserves from retained
Transfer to reserves from retained

Utilisation of securities premium
Total comprehensive income for
for the period, net of income tax

the period, net of income tax
Total comprehensive income

Remeasurement of defined
plans and fair value change

earnings during the period
earnings during the period

a) Equity Share Capital
Addition during the year
Addition during the year

Dividend including DDT
Dividend including DDT
Profit for the period

Profit for the year

per Aravind K

Particulars

185 186
Consolidated Ind AS Cash Flow Statement Consolidated Ind AS Cash Flow Statement (Contd.)
for the year ended March 31, 2021 for the year ended March 31, 2021
Particulars Year ended Year ended Particulars Year ended Year ended
Cash Flow from Operating Activities Cash Flow from Financing Activities
Profit Before Tax 2,04,790 1,58,822 Proceeds from issue of Share Capital (Including Securities Premium) 936 1,19,584
Adjustments to reconcile profit before tax to net cash flows: Payment of Lease liabilities (5,656) (4,877)
Depreciation and amortisation expense 10,230 11,125 Proceeds from issue of debt securities 18,76,079 19,40,525
Impairment of financial instruments 1,32,211 89,735 Redemption of Debt securities (13,75,181) (26,09,365)
Finance Costs 4,57,554 4,59,170 Borrowing - Other than debt securities 48,33,850 44,91,409
Loss on Sale of Property plant and equipment ( Net ) 54 13 Repayment of borrowing - Other than debt securities (44,29,191) (33,93,350)
Change in fair value of financial instruments - Loss - 140 Proceeds from issue of subordinated liabilities 14,500 45,000
Net gain on fair value change in financial instruments (487) (1,569) Repayment of subordinated liabilities (34,650) (29,500)
Interest Income on bank deposits and other investments (34,756) (24,371) 8,85,407 4,44,719
Dividend on Investments (13) (37) Investment in Bank Fixed Deposits (Net of withdrawals) (18,445) (2,94,218)
Income tax refund (378) - Dividends Paid (Including Distribution Tax) (10,655) (20,027)
Share based payment expense 564 1,161 Net Cash Flow From Financing Activities (C) 8,51,587 2,45,181
5,64,979 5,35,367 Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) (1,89,836) 32,299
Operating Profit Before Working Capital Changes 7,69,769 6,94,189 Cash and Cash Equivalents at the Beginning of the Year (Refer Note below) 3,48,457 3,16,158
Adjustments for :- Cash and Cash Equivalents at the End of the period (Refer Note Below) 1,58,621 3,48,457
(Increase)/Decrease in operating Assets Note:
- Loans (11,76,572) (8,04,020) Cash and Cash Equivalents at the End of the period as per Balance Sheet 1,59,323 3,49,514
- Trade Receivables (3,316) 1,481 Less: On Other bank balances 702 1,057
- Other Financial Assets (15,532) (28,937) Cash and cash equivalents for cashflow purpose 1,58,621 3,48,457
- Other Non Financial Assets (1,877) (11,97,297) (210) (8,31,686) The accompanying notes are integral part of the Consolidated financial statements
Proceeds from de-recognition of financial assets recognised at amortised cost - 4,35,789
Increase/(Decrease) in operating liabilities & Provisions
- Payables 16,332 (4,567)
- Other Financial liabilities 13,954 5,384 As per our report of even date
- Provisions 1,894 1,685
- Other Non-Financial liabilities 19 32,199 (873) 1,629 ICAI Firm Regn No.101049W/E300004
Cash Flow used in Operations (3,95,329) 2,99,921
Finance Costs paid (4,54,493) (4,71,458)
Interest Received on Bank Deposits and Other Investments 35,543 21,660 Membership No: 221268
Dividend received 13 37
(4,18,937) (4,49,761)
(8,14,266) (1,49,840)
Income tax paid (Net of refunds) (69,929) (57,637)
Net Cash Used in Operating Activities (A) (8,84,195) (2,07,477)
Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Intangible Assets (3,289) (7,156)
Proceeds from Sale of Property, Plant and Equipment 150 108
Movement in investments (net) (1,54,089) 1,643
Net Cash Used in Investing Activities (B) (1,57,228) (5,405)
187 188
Notes forming part of the Consolidated Ind AS Financial Statements Notes forming part of the Consolidated Ind AS Financial Statements (Contd.)
1. Corporate Information • Rights arising from other contractual arrangements Consolidated financial statements. Ind AS 12 Income 2020. Further, the Company offered resolution plans to its
• The Group’s voting rights and potential voting rights Taxes applies to temporary differences that arise from customers pursuant to RBI’s guideline ‘Resolution framework
Cholamandalam Investment and Finance Company
the elimination of profits and losses resulting from for Covid-19 related stress’ dated August 6, 2020.
Limited (“the Company”) (CIN L65993TN1978PLC007576) is • The size of the Group’s holding of voting rights relative
a public limited Company domiciled in India and the equity intragroup transactions. The impact of COVID-19 pandemic including the ongoing
to the size and dispersion of the holdings of the other
shares of the Company is listed on Bombay Stock Exchange and voting rights holders Profit or loss and each component of OCI are attributed to “second wave”, on Company’s operations and financial
National Stock Exchange. The Company and its subsidiaries viz. the equity holders of the parent of the Group and to the metrics, will depend on the future developments, which are
The Group re-assesses whether or not it controls an
Cholamandalam Securities Limited and Cholamandalam Home non-controlling interests, even if this results in the non- highly uncertain. Management continues to monitor the
Finance Limited (together hereinafter referred to as “Group”). investee if facts and circumstances indicate that there are
controlling interests having a deficit balance. evolving situation on an ongoing basis and management
The Group is one of the premier diversified financial services changes to one or more of the three elements of control.
has considered events up to the date of these financial
companies in India, engaged in providing vehicle finance, Consolidation of a subsidiary begins when the Group When necessary, adjustments are made to the financial statements, to determine the financial implications including
home loans and Loan against property, business of broking and obtains control over the subsidiary and ceases when the statements of subsidiaries to bring their accounting in respect of Expected Credit Loss (ECL) provisioning, as
distribution of financial products. Group loses control of the subsidiary. Assets, liabilities, policies in line with the Group’s accounting policies. All at March 31, 2021, and has made cumulative expected
income and expenses of a subsidiary acquired or disposed intra-group assets, liabilities, equity, income, expenses
The Consolidated Ind AS financial statements are presented in credit loss provision for loans as on March 31, 2021 which
of during the period are included in the Consolidated and cash flows relating to transactions between members
INR which is also functional currency of the Group. aggregates to ` 2,44,441 lakhs (` 1,52,297 lakhs for March
financial statements from the date the Group gains control
of the Group are eliminated in full on consolidation. 31, 2020). The Company holds a management overlay of
2.1 Basis of Consolidation until the date the Group ceases to control the subsidiary.
If the Group loses control over a subsidiary, it: ` 1,10,024 lakhs as at March31, 2021 (` 53,445 lakhs - March
The Consolidated Ind AS financial statements of the Consolidated financial statements are prepared using 31, 2020) as part of its ECL provision.
• Derecognises the assets (including goodwill) and
Company have been prepared in accordance with uniform accounting policies for like transactions and other
liabilities of the subsidiary Given the dynamic and evolving nature of pandemic, these
Indian Accounting Standards (Ind AS) notified under the events in similar circumstances. If a member of the Group
estimates are subject to uncertainty caused by the ongoing
Companies (Indian Accounting Standards) Rules, 2015 (as uses accounting policies other than those adopted in the • Derecognises the carrying amount of any non-
Covid-19 pandemic and related events.
amended from time to time). Consolidated financial statements for like transactions and controlling interests
The Consolidated Ind AS financial statements have been events in similar circumstances, appropriate adjustments 3A Particulars of consolidation
• Derecognises the cumulative translation differences
prepared in accordance with Ind AS. The Consolidated are made to that Group member’s financial statements in The financial statements of the following subsidiaries/
recorded in equity
Ind AS financial statements have been prepared on a preparing the Consolidated financial statements to ensure associates (all incorporated in India) have been considered
historical cost basis, except for fair value through other conformity with the Group’s accounting policies. • Recognises the fair value of the consideration received for consolidation:
comprehensive income (FVOCI) instruments, fair value The financial statements of all entities used for the purpose • Recognises the fair value of any investment retained
through profit and loss (FVTPL) instruments, derivative Name of the Company Percentage of Voting Power as on
of consolidation are drawn up to same reporting date as • Recognises any surplus or deficit in profit or loss March 31, March 31,
financial instruments and certain financial assets and that of the parent company, i.e., year ended on March 31. 2021 2020
financial liabilities measured at fair value (refer accounting Reclassifies the parent’s share of components previously Cholamandalam Securities 100.00% 100.00%
Consolidation procedure:
policy regarding financial instruments). recognised in OCI to profit or loss or retained earnings, as Limited (CSEC)
The Consolidated Ind AS financial statements are presented (a) Combine like items of assets, liabilities, equity, income, appropriate, as would be required if the Group had directly Cholamandalam Home Finance 100.00% 100.00%
in Indian Rupees (INR) and all values are rounded to the expenses and cash flows of the parent with those of its disposed of the related assets or liabilities Limited (CHFL)
subsidiaries. For this purpose, income and expenses of White Data Systems 30.87% 30.87%
nearest lakhs, except when otherwise indicated. A change in the ownership interest of a subsidiary, without
the subsidiary are based on the amounts of the assets India Private Limited
The Consolidated Ind AS financial statements comprise loss of control, is accounted for as an equity transaction. Vishvakarma Payments 21.00% -
and liabilities recognised in the Consolidated financial
the financial statements of the Company, its subsidiaries Private Limited
statements at the acquisition date. 2.2 . Impact of COVID-19 on Business
(being the entity that it controls) and its Associates as at
March 31, 2021. Control is evidenced when the Group (b) Offset (eliminate) the carrying amount of the parent’s The COVID-19 pandemic has affected several countries
is exposed, or has rights, to variable returns from its investment in each subsidiary and the parent’s portion across the world, including India, Consequent lockdowns 3B Investment in Associates
involvement with the investee and has the ability to affect of equity of each subsidiary. Business combinations and varying restrictions imposed by the government across An associate is an entity over which the Group has
those returns through its power over the investee. policy explains how to account for any related several jurisdictions in which the Company operates has significant influence. Significant influence is the power to
goodwill. considerably impacted company’s business operations
Generally, there is a presumption that a majority of voting participate in the financial and operating policy decisions
rights result in control. To support this presumption and (c) Eliminate in full intra-group assets and liabilities, during the year ended March 31, 2021. of the investee.
when the Group has less than a majority of the voting equity, income, expenses and cash flows relating to In accordance with the Reserve bank of India (RBI) guidelines The Group’s investments in its associates are accounted
or similar rights of an investee, the Group considers all transactions between entities of the Group (profits related to “Covid-19 regulatory package” dated March for using the equity method. Under the equity method,
relevant facts and circumstances in assessing whether it or losses resulting from intra-group transactions that 27, 2020 and subsequent guidelines on EMI moratorium the investment in an associates is initially recognised at
has power over an investee, including: are recognised in assets, such as inventory and fixed dated April 17, 2020 and May 23, 2020 the Company has cost. The carrying amount of the investment is adjusted
•
The contractual arrangement with the other vote assets, are eliminated in full). Intra-group losses may offered moratorium to its customers based the eligibility to recognise changes in the Group’s share of net assets of
holders of the investee indicate an impairment that requires recognition in the for EMIs falling due between March 1, 2020 to August 31, the associates since the acquisition date. Goodwill relating
189 190
Notes forming part of the Consolidated Ind AS Financial Statements (Contd.) Notes forming part of the Consolidated Ind AS Financial Statements (Contd.)
to the associates is included in the carrying amount of the 4. Presentation of financial statements 5.1.4 Financial assets and liabilities 5.1.4.1.2 The SPPI test
investment and is not tested for impairment individually. 5.1.4.1 Bank balances, Loans, Trade receivables and financial As a second step of its classification process the Group
The Group presents its balance sheet in order of liquidity.
The statement of profit and loss reflects the Group’s share An analysis regarding recovery or settlement within investments at amortised cost assesses the contractual terms of financial instruments
of the results of operations of the associates. Any change 12 months after the reporting date (current) and more The Group measures Bank balances, Loans, and other to identify whether they meet the SPPI test.
in OCI of those investees is presented as part of the Group’s than 12 months after the reporting date (non–current) is financial investments at amortised cost if both of the ‘Principal’ for the purpose of this test is defined as the
OCI. In addition, when there has been a change recognised presented in notes to the financial statements. following conditions are met: fair value of the financial asset at initial recognition
directly in the equity of the associates, the Group Financial assets and financial liabilities are generally and may change over the life of the financial asset
• The financial asset is held within a business model with
recognises its share of any changes, when applicable, in reported gross in the balance sheet. They are only offset and the objective to hold financial assets in order to collect (for example, if there are repayments of principal or
the statement of changes in equity. Unrealised gains and reported net when, in addition to having an unconditional contractual cash flows and amortisation of the premium/discount).
losses resulting from transactions between the Group and legally enforceable right to offset the recognised amounts
• The contractual terms of the financial asset give rise on The most significant elements of interest within a
the associates are eliminated to the extent of the interest without being contingent on a future event, the parties specified dates to cash flows that are solely payments lending arrangement are typically the consideration
in the associates. also intend to settle on a net basis in all of the following of principal and interest (SPPI) on the principal amount for the time value of money and credit risk. To make
If an entity’s share of losses of an associates equal or circumstances: outstanding. the SPPI assessment, the Group applies judgement
exceeds its interest in the associates (which includes any • The normal course of business The details of these conditions are outlined below. and considers relevant factors such as the currency
long-term interest that, in substance, form part of the • The event of default in which the financial asset is denominated, and the
5.1.4.1.1 Business model assessment
Group’s net investment in the associates), the entity period for which the interest rate is set.
• The event of insolvency or bankruptcy of the Group The Group determines its business model at the level
discontinues recognising its share of further losses.
and/or its counterparties that best reflects how it manages Group’s of financial 5.1.5 Equity instruments
Additional losses are recognised only to the extent that
the Group has incurred legal or constructive obligations 5. Significant accounting policies assets to achieve its business objective. The Group subsequently measures all equity investments
or made payments on behalf of the associates. If the 5.1 Financial instruments – initial recognition The Group's business model is not assessed on an at fair value through profit or loss, unless the Group’s
associates subsequently reports profits, the entity resumes instrument-by-instrument basis, but at a higher level management has elected to classify irrevocably some of
5.1.1 Date of recognition
recognising its share of those profits only after its share of of aggregated portfolios and is based on observable its equity investments as equity instruments at FVOCI,
the profits equals the share of losses not recognised. F inancial assets and liabilities, with the exception of loans, factors such as: when such instruments meet the definition of Equity
debt securities, and borrowings are initially recognised under Ind AS 32 Financial Instruments: Presentation and are
The aggregate of the Group’s share of profit or loss of an • How the performance of the business model and
on the trade date, i.e., the date that the Group becomes not held for trading. Such classification is determined on
associates is shown on the face of the statement of profit the financial assets held within that business model
a party to the contractual provisions of the instrument. an instrument-by-instrument basis.
and loss. are evaluated and reported to the entity's key
Loans are recognised when fund transfers are initiated
management personnel Gains and losses on these equity instruments are never
The financial statements of the associates are prepared for to the customers’ account or cheques for disbursement
• The risks that affect the performance of the business recycled to profit or loss. Dividends are recognised in profit
the same reporting period as the Group. When necessary, have been prepared by the Group (as per the terms of the
model (and the financial assets held within that or loss as dividend income when the right of the payment
adjustments are made to bring the accounting policies in agreement with the borrowers). The Group recognises debt
business model) and, in particular, the way those has been established, except when the Group benefits
line with those of the Group. securities and borrowings when funds reach the Group.
risks are managed from such proceeds as a recovery of part of the cost of
After application of the equity method, the Group 5.1.2 Initial measurement of financial instruments the instrument, in which case, such gains are recorded in
• How managers of the business are compensated
determines whether it is necessary to recognise an All financial instruments are recognised initially at fair OCI (Other Comprehensive Income). Equity instruments at
(for example, whether the compensation is based
impairment loss on its investment in its associates. At each value, including transaction costs that are attributable on the fair value of the assets managed or on the FVOCI are not subject to an impairment assessment.
reporting date, the Group determines whether there is to the acquisition of financial instrument, except in the contractual cash flows collected) 5.1.6 Debt securities and other borrowed funds
objective evidence that the investment in the associates case of financial instruments which are FVTPL (Fair value
The expected frequency, value and timing of sales are After initial measurement, debt issued and other borrowed
is impaired. If there is such evidence, the Group calculates through profit and loss),where the transaction costs are
also important aspects of the Group’s assessment funds are subsequently measured at amortised cost.
the amount of impairment as the difference between the charged to the statement of profit and loss.
recoverable amount of the associates and its carrying The business model assessment is based on reasonably Amortised cost is calculated by taking into account any
5.1.3 Measurement categories of financial assets and
value, and then recognises the impairment loss with expected scenarios without taking 'worst case' or discount or premium on issue funds, and costs that are an
liabilities
respect to the Group’s investment in an associates. 'stress case’ scenarios into account. If cash flows after integral part of the EIR.
The Group classifies all of its financial assets based on the initial recognition are realised in a way that is different
Upon loss of significant influence over the associates, the 5.1.7 Undrawn loan commitments
business model for managing the assets and the asset’s from the Group's original expectations, the Group
Group measures and recognises any retained investment contractual terms, measured at either: does not change the classification of the remaining Undrawn loan commitments are commitments under
at its fair value. Any difference between the carrying financial assets held in that business model, but which, over the duration of the commitment, the Group is
• Amortised cost
amount of the associates upon loss of significant influence incorporates such information when assessing newly required to provide a loan with pre-specified terms to the
and the fair value of the retained investment and proceeds • FVTPL originated or newly purchased financial assets going customer. Undrawn loan commitments are in the scope of
from disposal is recognised in profit or loss. • FVOCI forward. the ECL requirements.
191 192
The nominal contractual value of undrawn loan The Group has transferred the financial asset if, and only if, are measured on a basis that reflects the rights and whether a financial instrument’s credit risk has increased
commitments, where the loan agreed to be provided is on either: obligations that the Group has retained. significantly since initial recognition, by considering the
market terms, are not recorded in the balance sheet. The • The Group has transferred its contractual rights to Continuing involvement that takes the form of a guarantee change in the risk of default occurring over the remaining
nominal values of these commitments together with the receive cash flows from the financial asset over the transferred asset is measured at the lower of the life of the financial instrument.
corresponding ECLs are disclosed in notes. Based on the above process, the Group categorises its
Or original carrying amount of the asset and the maximum
5.1.8 Reclassification of financial assets and liabilities amount of consideration the Group could be required to pay. loans into Stage 1, Stage 2 and Stage 3, as described below:
• It retains the rights to the cash flows but has assumed
The Group does not reclassify its financial assets subsequent an obligation to pay the received cash flows in full In case where transfer of a part of financial assets Stage 1: When loans are first recognised, the Group
to their initial recognition, apart from the exceptional without material delay to a third party under a ‘pass– qualifies for de-recognition, any difference between the recognises an allowance based on 12mECLs. Stage 1 loans
circumstances in which the Group acquires, disposes of, through’ arrangement. proceeds received on such sale and the carrying value of also include facilities where the credit risk has improved
or terminates a business line. Financial liabilities are never the transferred asset is recognised as gain or loss on de- and the loan has been reclassified from Stage 2.
reclassified. The Group did not reclassify any of its financial Pass-through arrangements are transactions whereby the
recognition of such financial asset previously carried under Stage 2: When a loan has shown a significant increase
assets or liabilities during the reporting period. Group retains the contractual rights to receive the cash
amortisation cost category. The resulting interest only strip in credit risk since origination, the Group records an
flows of a financial asset (the 'original asset'), but assumes a
5.2 Derecognition of financial assets and liabilities initially is recognised at FVTPL. allowance for the LTECLs. Stage 2 loans also include
contractual obligation to pay those cash flows to one or more
5.2.1 Derecognition of financial assets due to substantial entities when all of the following three conditions are met: 5.2.2.2 Financial liabilities facilities, where the credit risk has improved and the loan
modification has been reclassified from Stage 3.
• The Group has no obligation to pay amounts to the A financial liability is derecognised when the obligation
The Group derecognises a financial asset, such as a loan eventual recipients unless it has collected equivalent under the liability is discharged, cancelled or expires. Where Stage 3: Loans that has been credit-impaired are based on
to a customer, when the terms and conditions have been amounts from the original asset, excluding short-term an existing financial liability is replaced by another from the the following, for which it records an allowance for the LTECLs.
renegotiated to the extent that, substantially, it becomes a advances with the right to full recovery of the amount same lender on substantially different terms, or the terms a)
Contractual payments of either principal or interest are
new loan, with the difference recognised as a derecognition lent plus accrued interest at market rates of an existing liability are substantially modified, such an past due for more than 90 days;
gain or loss, to the extent that an impairment loss has not exchange or modification is treated as a derecognition of
• The Group cannot sell or pledge the original asset b)
The loan is considered to be in default by the management.
already been recorded. The newly recognised loans are the original liability and the recognition of a new liability.
other than as security to the eventual recipients
classified as Stage 1 for ECL measurement purposes, unless The difference between the carrying value of the original The calculation of ECLs
the new loan is deemed to be POCI. • The Group has to remit any cash flows it collects on financial liability and the consideration paid is recognised The Group calculates ECLs to measure the expected cash
behalf of the eventual recipients without material in profit or loss.
When assessing whether or not to derecognise a loan shortfalls, discounted at an approximation to the EIR. A
delay. In addition, the Group is not entitled to reinvest
to a customer, amongst others, the Group considers the 5.3 Impairment of financial assets cash shortfall is the difference between the cash flows that
such cash flows, except for investments in cash or
following factors: are due to an entity in accordance with the contract and
cash equivalents including interest earned, during the 5.3.1 Overview of the ECL principles
• Change in currency of the loan the cash flows that the entity expects to receive.
period between the collection date and the date of The Group records allowance for expected credit losses
• Introduction of an equity feature required remittance to the eventual recipients. The key elements of the ECL are summarised below:
for all loans, other debt financial assets not held at FVTPL,
• Change in counterparty A transfer only qualifies for derecognition if either: together with loan commitments, in this section all PD:
• The Group has transferred substantially all the risks referred to as ‘financial instruments’. Equity instruments are The Probability of Default is an estimate of the likelihood
If the modification is such that the instrument would no
and rewards of the asset not subject to impairment under Ind AS 109. of default over a given time horizon. A default may only
longer meet the SPPI criterion.
The ECL allowance is based on the credit losses expected happen at a certain time over the assessed period, if the
If the modification does not result in cash flows that Or
to arise over the life of the asset (the lifetime expected facility has not been previously derecognised and is still in
are substantially different, the modification does not • The Group has neither transferred nor retained
credit loss or LTECL), unless there has been no significant the portfolio.
result in derecognition. Based on the change in cash substantially all the risks and rewards of the asset, but
flows discounted at the original EIR, the Group records a increase in credit risk since origination, in which case, the EAD:
has transferred control of the asset
modification gain or loss, to the extent that an impairment allowance is based on the 12 months’ expected credit loss
The Exposure at Default is an estimate of the exposure at a
The Group considers control to be transferred if and only if, (12mECL) as outlined in these notes.
loss has not already been recorded. future default date (in case of Stage 1 and Stage 2), taking
the transferee has the practical ability to sell the asset in its
5.2.2 Derecognition of financial assets other than due to The 12mECL is the portion of LTECLs that represent into account expected changes in the exposure after the
entirety to an unrelated third party and is able to exercise
substantial modification the ECLs that result from default events on a financial reporting date, including repayments of principal and
that ability unilaterally and without imposing additional
instrument that are possible within the 12 months after interest, whether scheduled by contract or otherwise,
5.2.2.1 Financial assets restrictions on the transfer.
the reporting date. expected drawdowns on committed facilities, and accrued
A financial asset (or, where applicable, a part of a financial When the Group has neither transferred nor retained interest from missed payments. In case of Stage 3 loans
Both LTECLs and 12mECLs are calculated on either an
asset or part of a group of similar financial assets) is substantially all the risks and rewards and has retained
individual basis or a collective basis, depending on the EAD represents exposure when the default occurred.
derecognised when the rights to receive cash flows from the control of the asset, the asset continues to be recognised
nature of the underlying portfolio of financial instruments. LGD:
financial asset have expired. The Group also derecognises only to the extent of the Group’s continuing involvement,
the financial asset if it has both transferred the financial in which case, the Group also recognises an associated The Group has established a policy to perform an The Loss Given Default is an estimate of the loss arising in
asset and the transfer qualifies for derecognition. liability. The transferred asset and the associated liability assessment, at the end of each reporting period, of the case where a default occurs at a given time. It is based
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on the difference between the contractual cash flows estimates of PD, LGD rates used in the ECL model may have been classified as Stage 2 due to significant increase are reversed and included in the initial cost of the asset or
due and those that the lender would expect to receive, not always capture all the characteristics of the market in credit risk. liability.
including from the realisation of any collateral. It is usually / external environment as at the date of the financial 5.7 Hedge accounting When a hedging instrument expires, is sold, terminated,
expressed as a percentage of the EAD. statements. To reflect this, qualitative adjustments or exercised, or when a hedge no longer meets the criteria
overlays are made as temporary adjustments to reflect the The Group makes use of derivative instruments to manage
Impairment losses and releases are accounted for and for hedge accounting, any cumulative gain or loss that
exposures to interest rate and foreign currency. In order
disclosed separately from modification losses or gains that emerging risks reasonably. has been recognised in OCI at that time remains in OCI
to manage particular risks, the Group applies hedge
are accounted for as an adjustment of the financial asset’s 5.4 Collateral repossessed and is recognised when the hedged forecast transaction
accounting for transactions that meet specified criteria.
gross carrying value is ultimately recognised in the statement of profit and
In connection with recovery of outstanding dues from At the inception of a hedge relationship, the Group formally loss. When a forecast transaction is no longer expected to
The mechanics of the ECL method are summarised below: borrowers, the Group from time to time and in the normal designates and documents the hedge relationship to occur, the cumulative gain or loss that was reported in OCI
Stage 1: The 12mECL is calculated as the portion of LTECLs
course of business, resorts to regular repossession of which the Group wishes to apply hedge accounting is immediately transferred to the statement of profit and
that represent the ECLs that result from default events collateral provided against vehicle loans and in certain and the risk management objective and strategy for loss.
on a financial instrument that are possible within the 12 cases, also exercises its right over property through legal undertaking the hedge. The documentation includes 5.8 Recognition of interest income
months after the reporting date. The Group calculates the procedures which include seizure of property (wherever the Group’s risk management objective and strategy for
12mECL allowance based on the expectation of a default applicable). Such assets repossessed are not used for the 5.8.1 The effective interest rate method
undertaking hedge, the hedging/ economic relationship,
occurring in the 12 months following the reporting date. internal operations. As per the Group’s accounting policy, the hedged item or transaction, the nature of the risk being Under Ind AS 109 interest income is recorded using
These expected 12-month default probabilities are applied repossessed assets are not recorded in the balance sheet, hedged, hedge ratio and how the entity will assess the the effective interest rate (‘EIR’) method for all financial
to a forecast EAD and multiplied by the expected LGD and and instead their estimated realisable value is considered effectiveness of changes in the hedging instrument’s fair instruments measured at amortised cost. The EIR is the rate
discounted by an approximation to the original EIR. in determining the ECL allowance for the related Stage 3 value in offsetting the exposure to changes in the hedged that discounts estimated future cash receipts through the
financial assets. item’s fair value or cash flows attributable to the hedged expected life of the financial instrument to the net carrying
Stage 2: When a loan has shown a significant increase
5.5 Write-offs risk. Such hedges are expected to be highly effective in amount of the financial asset.
in credit risk since origination, the Group records an
allowance for the LTECLs PDs and LGDs are estimated over achieving offsetting changes in fair value or cash flows Interest Income
Financial assets are written off either partially or in their
the lifetime of the instrument. The expected cash shortfalls and are assessed on an ongoing basis to determine that
entirety only when the Group has no reasonable expectation The EIR (and therefore, the amortised cost of the asset)
are discounted by an approximation to the original EIR. they actually have been highly effective throughout the
of recovery. If the amount to be written off is greater than the is calculated by taking into account the fees and costs
financial reporting periods for which they were designated. that are an integral part of the EIR. The Group recognises
Stage 3: For loans considered credit-impaired, the Group accumulated loss allowance, the difference recorded as an
recognises the lifetime expected credit losses for these expense in the period of write off. Any subsequent recoveries Hedges that meet the strict criteria for hedge accounting interest income using a rate of return that represents the
loans. The method is similar to that for Stage 2 assets, with are credited to impairment on financial instrument in the are accounted for, as described below: best estimate of a constant rate of return over the life of the
the PD set at 100%. Consolidated statement of profit and loss. loan. For credit-impaired financial assets interest income
5.7.1 Cash flow hedges
is calculated by applying the EIR to the amortised cost of
Loan commitment: 5.6 Restructured, rescheduled and modified loans A cash flow hedge is a hedge of the exposure to variability the credit-impaired financial assets (i.e. the gross carrying
When estimating LTECLs for undrawn loan commitments, The Group sometimes makes concessions or modifications in cash flows that is attributable to a particular risk amount less the allowance for expected credit losses).
the Group estimates the expected portion of the loan to the original terms of loans such as changing the associated with a recognised asset or liability (such as all
5.9 Taxes
commitment that will be drawn down over its expected instalment value or changing the tenor of the loan, as a or some future interest payments on variable rate debt)
life. The ECL is then based on the present value of the or a highly probable forecast transaction and could affect 5.9.1 Current Tax
response to the borrower’s request. The Group considers
expected shortfalls in cash flows if the loan is drawn the modification of the loan only before the loans gets profit or loss. Current tax assets and liabilities for the current and
down. The expected cash shortfalls are discounted at credit impaired. For designated and qualifying cash flow hedges, the prior years are measured at the amount expected to be
an approximation to the expected EIR on the loan. For effective portion of the cumulative gain or loss on the recovered from, or paid to, the taxation authorities. The
When the loan has been renegotiated or modified but not
an undrawn loan commitment, ECLs are calculated and hedging instrument is initially recognised directly in OCI tax rates and tax laws used to compute the amount are
derecognised, the Group also reassesses whether there
presented under provision. within equity (cash flow hedge reserve). those that are enacted, or substantively enacted, by the
has been a significant increase in credit risk. The Group also reporting date in the countries where the Group operates
5.3.2 Forward looking information considers whether the assets should be classified as Stage The ineffective portion of the gain or loss on the hedging and generates taxable income.
The Group considers a broad range of forward looking 3. Once an asset has been classified as restructured, it will instrument is recognised immediately in net gain/loss on
Current income tax relating to items recognised outside
information with reference to external forecasts of remain restructured for a period of year from the date on fair value changes in the profit and loss statement.
profit or loss is recognised outside profit or loss (either
economic parameters such as GDP growth, unemployment which it has been restructured.
When the hedged cash flow affects the statement of profit in other comprehensive income or in equity). Current
rates etc., as considered relevant so as to determine the Loans which have been renegotiated or modified in and loss, the effective portion of the gain or loss on the tax items are recognised in correlation to the underlying
impact of macro-economic factors on the Group’s ECL accordance with RBI Notifications - RBI/2020-21/16 DOR. hedging instrument is recorded in the corresponding transaction either in OCI or directly in equity. Management
estimates. No.BP.BC/3/21.04.048/2020-21- Resolution Framework income or expense line of the statement of profit and loss. periodically evaluates positions taken in the tax returns
The inputs and models used for calculating ECLs are for COVID-19 related Stress and RBI/2020-21/17 DOR. When the forecast transaction subsequently results in with respect to situations in which applicable tax
recalibrated periodically through the use of available No.BP.BC/4/21.04.048/2020-21- Micro, Small and Medium the recognition of a non-financial asset or a non-financial regulations are subject to interpretation and establishes
incremental and recent information. Further, internal Enterprises (MSME) sector – Restructuring of Advances liability, the gains and losses previously recognised in OCI provisions where appropriate.
195 196
5.9.2 Deferred Tax profit or loss (either in other comprehensive income or in asset is recognised in the statement of profit and loss in the The date of disposal of an item of property, plant and
Deferred tax is provided on temporary differences at equity). Deferred tax items are recognised in correlation period of derecognition. equipment is the date the recipient obtains control of that
the reporting date between the tax bases of assets and to the underlying transaction either in OCI or directly in item in accordance with the requirements for determining
5.11 Property, plant and equipment
liabilities and their carrying amounts for financial reporting equity. when a performance obligation is satisfied in Ind AS 115.
Property, plant and equipment is stated at cost excluding
purposes. Deferred tax assets and deferred tax liabilities are offset if a Right-of-use assets are depreciated from the
the costs of day–to–day servicing, less accumulated
Deferred tax liabilities are recognised for all taxable legally enforceable right exists to set off current tax assets commencement date on a straight-line basis over the
depreciation and accumulated impairment in value.
temporary differences, except: against current tax liabilities and the deferred taxes relate shorter of the lease term and useful life of the underlying
Changes in the expected useful life are accounted for
to the same taxable entity and the same taxation authority. asset.
• In respect of taxable temporary differences associated by changing the amortisation period or methodology,
with investments in subsidiaries, where the timing 5.9.3 Minimum Alternative Tax (MAT) as appropriate, and treated as changes in accounting 5.12 Intangible assets
of the reversal of the temporary differences can be Minimum alternate tax (MAT) paid in a year is charged estimates. The Group’s other intangible assets mainly include the value
controlled and it is probable that the temporary to the statement of profit and loss as current tax for the Depreciation is calculated using the straight–line method of computer software. An intangible asset is recognised
differences will not reverse in the foreseeable future year. The deferred tax asset is recognised for MAT credit to write down the cost of property and equipment to their only when its cost can be measured reliably and it is
Deferred tax assets are recognised for all deductible available only to the extent that it is probable that the residual values over their estimated useful lives which is probable that the expected future economic benefits that
temporary differences, the carry forward of unused concerned company will pay normal income tax during similar to those provided under Schedule II. Land is not are attributable to it will flow to the Group. Intangible assets
tax credits and any unused tax losses. Deferred tax the specified period, i.e., the period for which MAT credit depreciated. acquired separately are measured on initial recognition at
assets are recognised to the extent that it is probable is allowed to be carried forward. In the year in which the cost. Subsequently, they are carried at cost less accumulated
Useful life of assets which is same as those prescribed as
that taxable profit will be available against which Group recognizes MAT credit as an asset, it is created by amortisation and impairment losses if any, and are
per Schedule II of the Companies Act, 2013:
the deductible temporary differences, and the carry way of credit to the statement of profit and loss and shown amortised over their estimated useful life on the straight line
forward of unused tax credits and unused tax losses as part of deferred tax asset. The Group reviews the “MAT Asset Description Estimated Useful Life basis over a 3 year period or the license period whichever
can be utilised, except: credit entitlement” asset at each reporting date and writes Buildings 60 years is lower. The carrying amount of the assets is reviewed at
Computer Equipment 3 years
down the asset to the extent that it is no longer probable each Balance sheet date to ascertain impairment based on
• When the deferred tax asset relating to the deductible Other Equipment 5 years
that it will pay normal tax during the specified period. Leasehold improvements Lease Period or 5 years, internal or external factors. Impairment is recognised, if the
temporary difference arises from the initial recognition
whichever is lower carrying value exceeds the higher of the net selling price of
of an asset or liability in a transaction that is not 5.10 Investment Property
a business combination and, at the time of the Useful life of assets based on Management’s estimation the assets and its value in use.
Investment property represents property held to earn
transaction, affects neither the accounting profit nor rentals or for capital appreciation or both. and which are different from those specified in schedule II: 5.13 Impairment of non–financial assets
taxable profit or loss
Investment properties are measured initially at cost, The Group assesses, at each reporting date, whether
Asset Description Estimated Useful Life
• In respect of deductible temporary differences there is an indication that an asset may be impaired. If
including transaction costs. Subsequent to initial Furniture and Fixtures* 5 years
associated with investments in subsidiaries, associates Vehicles* 5 years any indication exists, or when annual impairment testing
recognition, investment properties are stated at cost less
and interests in joint ventures, deferred tax assets Membership card of stock 10 years for an asset is required, the Group estimates the asset’s
accumulated depreciation and accumulated impairment
are recognised only to the extent that it is probable exchanges recoverable amount. An asset’s recoverable amount is the
loss, if any.
that the temporary differences will reverse in the higher of an asset’s or cash-generating unit’s (CGU) fair
foreseeable future and taxable profit will be available Depreciation on building classified as investment property
*The Group, based on technical assessment made by value less costs of disposal and its value in use. Recoverable
against which the temporary differences can be has been provided on the straight-line method over a
technical expert and management estimate, depreciates amount is determined for an individual asset, unless the
utilised period of 60 years based on the Group’s estimate of their
Furniture & Fixtures and vehicles over estimated useful asset does not generate cash inflows that are largely
useful lives taking into consideration technical factors,
The carrying amount of deferred tax assets is reviewed lives which are different from the useful life prescribed in independent of those from other assets or Group of assets.
which is the same as the period prescribed in Sch II to the
at each reporting date and reduced to the extent that it Schedule II to the Companies Act, 2013. When the carrying amount of an asset or CGU exceeds its
Companies Act 2013.
is no longer probable that sufficient taxable profit will be recoverable amount, the asset is considered impaired and
Though the Group measures investment property using The residual values, useful lives and methods of
available to allow all or part of the deferred tax asset to be is written down to its recoverable amount.
cost based measurement, the fair value of investment depreciation of property, plant and equipment are
utilised. Unrecognised deferred tax assets are re-assessed In assessing value in use, the estimated future cash flows
property is disclosed in the notes. Fair values are reviewed at each financial year end and adjusted
at each reporting date and are recognised to the extent are discounted to their present value using a pre-tax
that it has become probable that future taxable profits will determined based on an annual evaluation performed prospectively, if appropriate.
discount rate that reflects current market assessments of
allow the deferred tax asset to be recovered. by an external independent valuer applying valuation Property, plant and equipment is derecognised on disposal the time value of money and the risks specific to the asset.
models. or when no future economic benefits are expected from
Deferred tax assets and liabilities are measured at the tax In determining fair value less costs of disposal, recent
rates that are expected to apply in the year when the asset Investment properties are derecognised either when they its use. Any gain or loss arising on derecognition of the market transactions are taken into account. If no such
is realised or the liability is settled, based on tax rates (and have been disposed of or when they are permanently asset (calculated as the difference between the net transactions can be identified, an appropriate valuation
tax laws) that have been enacted or substantively enacted withdrawn from use and no future economic benefit is disposal proceeds and the carrying amount of the asset) model is used. These calculations are corroborated by
at the reporting date. Deferred tax relating to items expected from their disposal. The difference between the is recognised in other income / expense in the statement valuation multiples, quoted share prices for publicly traded
recognised outside profit or loss is recognised outside net disposal proceeds and the carrying amount of the of profit and loss in the year the asset is derecognised. companies or other available fair value indicators.
197 198
The Group bases its impairment calculation on detailed than the contribution payable to the provident fund. The benefit obligation as an expense in the Consolidated 5.16.1 Provision for Claw Back of Commission Income
budgets and forecast calculations, which are prepared Group recognises contribution payable to the provident statement of profit and loss:
The estimated liability for claw back of commission
separately for each of the Group’s CGUs to which the fund scheme as an expense, when an employee renders • Service costs comprising current service costs, past- income is recorded in the period in which the underlying
individual assets are allocated. These budgets and forecast the related service. If the contribution payable to the service costs, gains and losses on curtailments and revenue is recognised. These estimates are established
calculations generally cover a period of five years. For scheme for service received before the balance sheet date non-routine settlements; and using historical information on the nature, frequency and
longer periods, a long-term growth rate is calculated and exceeds the contribution already paid, the deficit payable
• Net interest expense or income. expected average cost of claw back and management
applied to project future cash flows after the fifth year. To to the scheme is recognised as a liability after deducting
5.15 Share Based Payments estimates regarding possible future incidence. The
estimate cash flow projections beyond periods covered by the contribution already paid. If the contribution already
the most recent budgets/forecasts, the Group extrapolates estimates used for accounting of claw back claims are
paid exceeds the contribution due for services received Stock options are granted to the employees under the
cash flow projections in the budget using a steady or before the balance sheet date, then excess is recognised as reviewed periodically and revisions are made as required.
stock option scheme. The costs of stock options granted
declining growth rate for subsequent years, unless an an asset to the extent that the pre-payment will lead to, for to the employees (equity-settled awards) of the Group 5.17 Dividends on ordinary shares
increasing rate can be justified. In any case, this growth example, a reduction in future payment or a cash refund. are measured at the fair value of the equity instruments The Group recognises a liability to make cash distributions
rate does not exceed the long-term average growth rate granted. For each stock option, the measurement of fair
Employees’ State Insurance: The Group contributes to to equity holders of the parent when the distribution
for the products, industries, or country or countries in value is performed on the grant date. The grant date is
Employees State Insurance Scheme and recognizes such is authorised and the distribution is no longer at the
which the entity operates, or for the market in which the the date on which the Group and the employees agree
contribution as an expense in the Statement of Profit discretion of the Group. As per the Companies Act, 2013
asset is used. to the stock option scheme. The fair value so determined
and Loss in the period when services are rendered by the in India, a distribution is authorised when it is approved by
Impairment losses of continuing operations, are recognised is revised only if the stock option scheme is modified in a
employees. the shareholders. A corresponding amount is recognised
in the statement of profit and loss. manner that is beneficial to the employees.
Superannuation: The Group contributes a sum equivalent directly in equity.
For assets excluding goodwill, an assessment is made at This cost is recognised, together with a corresponding
to 15% of eligible employees’ salary to a Superannuation 5.18 Determination of Fair value
each reporting date to determine whether there is an increase in share-based payment (SBP) reserves in equity,
Fund administered by trustees and managed by Life
over the period in which the performance and/or service The Group measures financial instruments, such as,
indication that previously recognised impairment losses no Insurance Corporation of India (“LIC”). The Group has no
conditions are fulfilled in employee benefits expense. derivatives at fair value at each balance sheet date.
longer exist or have decreased. If such indication exists, the liability for future Superannuation Fund benefits other
The cumulative expense recognised for equity-settled
Group estimates the asset’s or CGU’s recoverable amount. than its contribution and recognizes such contributions Fair value is the price that would be received to sell an
transactions at each reporting date until the vesting date
A previously recognised impairment loss is reversed only as an expense in the Statement of Profit and Loss in the asset or paid to transfer a liability in an orderly transaction
reflects the extent to which the vesting period has expired
if there has been a change in the assumptions used to period when services are rendered by the employees. between market participants at the measurement date.
and the Group’s best estimate of the number of equity
determine the asset’s recoverable amount since the last
The Group makes contribution to a Gratuity Fund instruments that will ultimately vest. The statement of The fair value measurement is based on the presumption
impairment loss was recognised. The reversal is limited so
administered by trustees and managed by LIC. The Group profit and loss expense or Credit for a period represents that the transaction to sell the asset or transfer the liability
that the carrying amount of the asset does not exceed its
accounts its liability for future gratuity benefits based the movement in cumulative expense recognised as at takes place either:
recoverable amount, nor exceed the carrying amount that
on actuarial valuation, as at the Balance Sheet date, the beginning and end of that period and is recognised in
would have been determined, net of depreciation, had • In the principal market for the asset or liability, or
determined every year by an independent actuary using employee benefits expense.
no impairment loss been recognised for the asset in prior • In the absence of a principal market, in the most
the Projected Unit Credit method. The dilutive effect of outstanding options is reflected as
years. Such reversal is recognised in the statement of profit advantageous market for the asset or liability
or loss unless the asset is carried at a revalued amount, in Re-measurements, comprising of actuarial gains and additional share dilution in the computation of diluted
which case, the reversal is treated as a revaluation increase. losses, the effect of the asset ceiling, excluding amounts earnings per share. The principal or the most advantageous market must be
included in net interest on the net defined benefit liability If the options vests in instalments (i.e. the options vest accessible by the Group.
Goodwill is tested for impairment annually and when
and the return on plan assets (excluding amounts included pro rata over the service period), then each instalment The fair value of an asset or a liability is measured using
circumstances indicate that the carrying value may be
in net interest on the net defined benefit liability), are is treated as a separate share option grant because each the assumptions that market participants would use
impaired. Impairment is determined for goodwill by
recognised immediately in the balance sheet with a instalment has a different vesting period. when pricing the asset or liability, assuming that market
assessing the recoverable amount of each CGU (or group of
corresponding debit or credit to retained earnings through 5.16 Provisions participants act in their economic best interest.
CGUs) to which the goodwill relates. When the recoverable
OCI in the period in which they occur. Remeasurements
amount of the CGU is less than its carrying amount, an Provisions are recognised when the Group has a present A fair value measurement of a non-financial asset takes
are not reclassified to profit or loss in subsequent periods.
impairment loss is recognised. Impairment losses relating obligation (legal or constructive) as a result of past events, into account a market participant’s ability to generate
to goodwill cannot be reversed in future periods. Past service costs are recognised in profit or loss on the and it is probable that an outflow of resources embodying economic benefits by using the asset in its highest and
earlier of: economic benefits will be required to settle the obligation,
Intangible assets with indefinite useful lives are tested for best use or by selling it to another market participant that
impairment annually at the CGU level, as appropriate, and • The date of the plan amendment or curtailment, and and a reliable estimate can be made of the amount of the would use the asset in its highest and best use.
when circumstances indicate that the carrying value may obligation. When the effect of the time value of money
• The date that the Group recognises related The Group uses valuation techniques that are appropriate
be impaired. is material, the Group determines the level of provision
restructuring costs in the circumstances and for which sufficient data are
by discounting the expected cash flows at a pre-tax rate
5.14 Retirement and other employee benefits Net interest is calculated by applying the discount rate available to measure fair value, maximising the use of
reflecting the current rates specific to the liability. The
Retirement benefit in the form of provident fund is a defined to the net defined benefit liability or asset. The Group expense relating to any provision is presented in the relevant observable inputs and minimising the use of
contribution scheme. The Group has no obligation, other recognises the following changes in the net defined statement of profit and loss net of any reimbursement. unobservable inputs.
199 200
In order to show how fair values have been derived, The Group recognises revenue from contracts with customer pays consideration or before payment is due, a Non-monetary items measured at fair value in a foreign
financial instruments are classified based on a hierarchy of customers based on a five step model as set out in contract asset is recognised for the earned consideration currency are translated using the exchange rates at the
valuation techniques, as summarised below: Ind AS 115: that is conditional. date when the fair value is determined. The gain or loss
Step 1: Identify contract(s) with a customer: A contract arising on translation of non-monetary items measured
Level 1 financial instruments − Those where the inputs
• Contract liabilities
is defined as an agreement between two or more parties at fair value is treated in line with the recognition of the
used in the valuation are unadjusted quoted prices A contract liability is the obligation to transfer services to a
that creates enforceable rights and obligations and sets gain or loss on the change in fair value of the item (i.e.,
from active markets for identical assets or liabilities customer for which the Group has received consideration
out the criteria for every contract that must be met. translation differences on items whose fair value gain or
that the Group has access to at the measurement date.
(or an amount of consideration is due) from the customer. loss is recognized in OCI or profit or loss are also recognized
The Group considers markets as active only if there are Step 2: Identify performance obligations in the contract:
If a customer pays consideration before the Group transfers in OCI or profit or loss, respectively).
sufficient trading activities with regards to the volume A performance obligation is a promise in a contract with a
services to the customer, a contract liability is recognised
and liquidity of the identical assets or liabilities and customer to transfer a good or service to the customer. 5.23 Earnings Per Share
when the payment is made or the payment is due
when there are binding and exercisable price quotes Step 3: Determine the transaction price: The transaction Basic Earnings Per Share is calculated by dividing the
(whichever is earlier). Contract liabilities are recognised as
available on the balance sheet date. price is the amount of consideration to which the Group net profit or loss for the period attributable to equity
revenue when the Group performs under the contract.
Level 2 financial instruments −Those where the
• expects to be entitled in exchange for transferring shareholders by the weighted average number of equity
promised goods or services to a customer, excluding 5.20 Dividend Income
inputs that are used for valuation and are significant, shares outstanding during the period.
amounts collected on behalf of third parties. Dividend income (including from FVOCI investments) is
are derived from directly or indirectly observable The weighted average number of equity shares outstanding
market data available over the entire period of the Step 4: Allocate the transaction price to the performance recognised when the Group’s right to receive the payment during the period and for all periods presented is adjusted
instrument’s life. Such inputs include quoted prices obligations in the contract: For a contract that has more is established and it is probable that the economic benefits for events, such as bonus shares, other than the conversion
for similar assets or liabilities in active markets, quoted than one performance obligation, the Group allocates the associated with the dividend will flow to the entity and the of potential equity shares, that have changed the number
prices for identical instruments in inactive markets transaction price to each performance obligation in an amount of the dividend can be measured reliably. This is of equity shares outstanding, without a corresponding
amount that depicts the amount of consideration to which generally when the shareholders approve the dividend.
and observable inputs other than quoted prices such change in resources. For the purpose of calculating diluted
the Group expects to be entitled in exchange for satisfying
as interest rates and yield curves, implied volatilities, 5.21 Input Tax credit (Goods and Service Tax) earnings per share, the net profit or loss for the period
each performance obligation.
and credit spreads. In addition, adjustments may be attributable to equity shareholders and the weighted
Input Tax Credit is accounted for in the books in the period
required for the condition or location of the asset Step 5: Recognise revenue when (or as) the Group satisfies average number of shares outstanding during the period
a performance obligation. when the underlying service / supply received is accounted
or the extent to which it relates to items that are is adjusted for the effects of all dilutive potential equity
to the extent permitted as per the applicable regulatory
comparable to the valued instrument. However, if such 5.19.1 Interest on overdue balances and Other Charges shares.
laws and when there is no uncertainty in availing / utilising
adjustments are based on unobservable inputs which Overdue interest in respect of loans is recognised upon 5.24 Segment Information
the same. The ineligible input credit is charged off to the
are significant to the entire measurement, the Group realisation. respective expense or capitalised as part of asset cost as The accounting policies adopted for Segment reporting
will classify the instruments as Level 3.
5.19.2 Fee Income & Sale of Services applicable. are in line with the accounting policies of the Group with
Level 3 financial instruments − Those that include
• the following additional policies:
a) Fee income from loans are recognised upon satisfaction 5.22 Foreign Currency transactions
one or more unobservable input that is significant to
of following: Revenue and expenses have been identified to segments
the measurement as whole. The Group’s financial statements are presented in Indian
i) Completion of service on the basis of their relationship to the operating activities
Rupees (INR) which is also the Group’s functional currency.
For assets and liabilities that are recognised in the financial of the Segment. Revenue and expenses, which relate to the
ii) and realisation of the fee income. Transactions in foreign currencies are initially recorded by
statements on a recurring basis, the Group determines enterprise as a whole and are not allocable to Segments
whether transfers have occurred between levels in the b) Servicing and collections fees on assignment are the Group at their respective functional currency spot rates on a reasonable basis have been included under “Un-
hierarchy by re-assessing categorisation (based on the recognised upon completion of service. at the date the transaction first qualifies for recognition. allocable”.
lowest level input that is significant to the fair value c) Advertising income is recognised over the contract Income and expenses in foreign currencies are initially Assets and liabilities have been identified to segments on
measurement as a whole) at the end of each reporting period as and when related services are rendered. recorded by the Group at the exchange rates prevailing on the basis of their relationship to the operating activities
period. d) Revenue from contract with customer is recognised the date of the transaction. of the segment. Assets and liabilities, which relate to the
The Group evaluates the levelling at each reporting period point in time when performance obligation is satisfied Foreign currency denominated monetary assets and enterprise as a whole and are not allocable to segments
on an instrument-by-instrument basis and reclassifies (when the trade is executed). These include brokerage liabilities are translated at the functional currency spot on a reasonable basis have been included under “Un-
instruments when necessary based on the facts at the end fees which is charged per transaction executed. allocable”.
rates of exchange at the reporting date and exchange
of the reporting period. 5.19.3 Contract Balances gains and losses arising on settlement and restatement are 5.25 Cash and Cash equivalents
5.19 Recognition of Income Contract assets recognized in the statement of profit and loss. Cash and cash equivalent in the balance sheet comprise
Revenue (other than for those items to which Ind AS 109 A contract asset is the right to consideration in exchange Non-monetary items that are measured in terms of cash at banks and on hand and short-term deposits with
Financial Instruments are applicable) is measured at fair for services transferred to the customer. If the Group historical cost in a foreign currency are translated using an original maturity of three months or less, which are
value of the consideration received or receivable. performs by transferring services to a customer before the the exchange rates at the dates of the initial transactions. subject to an insignificant risk of changes in value.
201 202
5.26 Cash Flow Statement Lease liabilities are remeasured with a corresponding i) De-recognition of Financial instruments The Group’s ECL calculations are outputs of complex
adjustment to the related right to use asset if the Group The Group enters into securitisation transactions where models with a number of underlying assumptions
Cash flows are reported using the indirect method, where
changes its assessment if the whether it will exercise an financial assets are transferred to a structured entity for a regarding the choice of variable inputs and their
by profit / (loss) before tax is adjusted for the effects of
extension or a termination option. consideration. The financial assets transferred qualify for interdependencies. Elements of the ECL models that are
transactions of non-cash nature and any deferrals or
derecognition only when substantial risk and rewards are considered accounting estimates include:
accruals of past or future cash receipts or payments. ROU asset has been presented under Property, plant and
equipment while lease liability is presented under Other transferred. • The Group’s criteria for assessing if there has been a
For the purpose of the Statement of Cash Flows, cash and
Financial Liabilities in the Balance Sheet. Lease payments This assessment includes judgements reflecting all significant increase in credit risk and so allowances for
cash equivalents as defined above, net of outstanding
made by the Group are classified as financing cash flows. relevant evidence including the past performance of financial assets should be measured on a LTECL basis
bank overdrafts as they are considered an integral part of
the assets transferred and credit risk that the Group has and the qualitative assessment
cash management of the Group. The Group applies the short-term lease recognition
exemption to its short-term leases of Buildings (i.e., been exposed to. Based on this assessment, the Group • The segmentation of financial assets when their ECL is
5.27 Leases believes that the credit enhancement provided pursuant assessed on a collective basis
those leases that have a lease term of 12 months or less
The Group’s lease asset consists of leases for buildings. to the transfer of financial assets under securitisation are
from the commencement date and do not contain a • Development of ECL models, including the various
The Group assesses whether a contract contains a lease, higher than the loss incurred on the similar portfolios of
purchase option). Lease payments on short-term leases formulas and the choice of inputs
at inception of a contract. A contract is, or contains, a the Group hence it has been concluded that securitisation
are recognised as expense on a straight-line basis over the • Determination of temporary adjustments as qualitative
transactions entered by the Group does not qualify de-
lease if the contract conveys the right to control the use lease term.
recognition since substantial risk and rewards of the adjustment or overlays based on broad range of
of an identified asset for a period of time in exchange for
5.28 Trade receivable ownership has not been transferred. The transactions forward looking information as economic inputs
consideration. To assess whether a contract conveys the
The Group follows 'simplified approach' for recognition are treated as financing arrangements and the sale The Company has considered the impact of Covid-19
right to control the use of an identified asset, the Group
of impairment loss allowance on trade receivables. The consideration received is treated as borrowings. pandemic and the moratorium given to borrowers
assesses whether: (i) the contract involves the use of an
application of simplified approach does not require the ii) Fair value of financial instruments pursuant to the Covid-19 regulatory package announced
identified asset (ii) the Group has substantially all of the
Group to track changes in credit risk. Rather, it recognises by Reserve Bank of India, in determination of impairment
economic benefits from the use of the asset through the The fair value of financial instruments is the price that
impairment loss allowance based on lifetime ECLs at allowance for the year. Also refer note 2.3.
period of the lease and (iii) the Group has the right to would be received to sell an asset or paid to transfer a
each reporting date, right from its initial recognition. The liability in an orderly transaction in the principal (or most It has been the Group’s policy to regularly review its
direct the use of the asset.
Group uses a provision matrix to determine impairment advantageous) market at the measurement date under models in the context of actual loss experience and adjust
At the date of commencement of the lease, the Group loss allowance on portfolio of its trade receivables. The when necessary.
current market conditions (i.e., an exit price) regardless
recognises a right-of-use asset (“ROU”) and a corresponding provision matrix is based on its historically observed of whether that price is directly observable or estimated iv) Leases
lease liability for all lease arrangements in which it is a default rates over the expected life of the trade receivables using another valuation technique. When the fair values
lessee, except for leases with a term of twelve months or a.
Determining the lease term of contracts with
and is adjusted for forward-looking estimates. At every of financial assets and financial liabilities recorded in the
less (short-term leases) and low value leases. For these renewal and termination options – Group as lessee
reporting date, the historical observed default rates are balance sheet cannot be derived from active markets, they
short-term and low value leases, the Group recognises the updated for changes in the forward-looking estimates. are determined using a variety of valuation techniques The Group determines the lease term as the non-
lease payments as an operating expense on a straight-line that include the use of valuation models. The inputs to cancellable term of the lease, together with any
6A. Significant accounting judgements,
basis over the term of the lease. these models are taken from observable markets where periods covered by an option to extend the lease
estimates and assumptions
possible, but where this is not feasible, estimation is if it is reasonably certain to be exercised, or any
Certain lease arrangements include the options to extend

The preparation of the Group’s financial statements required in establishing fair values. Judgements and periods covered by an option to terminate the lease,
or terminate the lease before the end of the lease term.
requires management to make judgements, estimates and estimates include considerations of liquidity and model if it is reasonably certain not to be exercised. The
ROU assets and lease liabilities includes these options
assumptions that affect the reported amount of revenues, inputs related to items such as credit risk (both own and Group applies judgement in evaluating whether it
when it is reasonably certain that they will be exercised.
expenses, assets and liabilities, and the accompanying counterparty), funding value adjustments, correlation and is reasonably certain whether or not to exercise the
Right-of-Use assets are depreciated from the disclosures, as well as the disclosure of contingent volatility. For further details about determination of fair option to renew or terminate the lease. That is, it
commencement date on a straight-line basis over the liabilities. Uncertainty about these assumptions and value please see Fair value note in Accounting policy. considers all relevant factors that create an economic
shorter of the lease term. Right to use assets are evaluated estimates could result in outcomes that require a material incentive for it to exercise either the renewal or
iii) Impairment of financial asset
for recoverability whenever events or changes in the adjustment to the carrying amount of assets or liabilities termination.
The measurement of impairment losses across all categories
circumstances indicate that their carrying amounts may affected in future period. b. Estimating the incremental borrowing rate
of financial assets requires judgement, in particular, the
not be recoverable.
In the process of applying the Group’s accounting policies, estimation of the amount and timing of future cash flows The Group cannot readily determine the interest rate
The lease liability is initially measured at amortised cost management has made the following judgements/ and collateral values when determining impairment losses implicit in the lease, therefore, it uses its incremental
at the present value of the future lease payments. The estimates, which have a significant risk of causing a and the assessment of a significant increase in credit risk. borrowing rate (IBR) to measure lease liabilities. The IBR
lease payments are discounted using the incremental material adjustment to the carrying amounts of assets and These estimates are driven by a number of factors, changes is the rate of interest that the Group would have to pay
borrowing rates in the country of domicile of the leases. liabilities. in which can result in different levels of allowances. to for its borrowings.
203 204
v) Provisions and other contingent liabilities Accordingly the related assessment becomes a critical ` in lakhs
judgement to determine the business model for such Particulars As at As at
When the Group can reliably measure the outflow of March 31,2021 March 31,2020
economic benefits in relation to a specific case and financial assets under Ind AS.
Note : 7 CASH AND CASH EQUIVALENTS
considers such outflows to be probable, the Group records Refer Note 5.1.4.1.1 for related details. Cash on hand 3,180 330
a provision against the case. Where the probability of Balances with banks
6B. Amendments to Ind AS 116: COVID-19-
outflow is considered to be remote, or probable, but a - In Current Accounts 1,49,570 61,856
reliable estimate cannot be made, a contingent liability is
Related Rent Concessions - In Deposit Accounts - Original maturity 3 months or less 2,901 2,86,130
disclosed. The amendments provide relief to lessees from applying Cheques, drafts on hand 2,970 141
Ind AS 116 guidance on lease modification accounting for On other bank balances
Given the subjectivity and uncertainty of determining the
rent concessions arising as a direct consequence of the - On client and exchange related accounts & other deposits 702 1,057
probability and amount of losses, the Group takes into
Total 1,59,323 3,49,514
account a number of factors including legal advice, the COVID-19 pandemic. As a practical expedient, a lessee
Cash and cash equivalents 1,59,323 3,49,514
stage of the matter and historical evidence from similar may elect not to assess whether a COVID-19 related
Less: Other bank balances 702 1,057
incidents. Significant judgement is required to conclude rent concession from a lessor is a lease modification. A
Cash and cash equivalents for cashflow purpose 1,58,621 3,48,457
on these estimates. lessee that makes this election accounts for any change
in lease payments resulting from the COVID-19 related ` in lakhs
vi) Business Model Assessment. Particulars As at As at
rent concession the same way it would account for the March 31,2021 March 31,2020
The Group from time to time enters into direct bilateral
change under Ind AS 116, if the change were not a lease Note 8 : BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
assignment deals, which qualify for de-recognition under
modification. - In Deposit Accounts - Original maturity more than 3 months 2,78,758 3,11,805
Ind AS 109. Accordingly, the assessment of the business
The amendments are applicable for annual reporting - Non current bank balances 836 837
model for managing its financial assets becomes a critical
- In earmarked accounts
judgement. periods beginning on or after the 1 April 2020. In case,
- In Unpaid Dividend Accounts 74 73
Further, the Group also made an investment in the a lessee has not yet approved the financial statements
- Deposits with Banks as collateral towards securitisation loan 31,978 37,837
Government securities in order to comply the liquidity for issue before the issuance of this amendment, then - Deposits with Banks as collateral towards Overdraft facility (Refer Note 20) 57,000 -
ratio compliance as required by RBI pursuant to its master the same may be applied for annual reporting periods - Other deposit Account on amalgamation of Cholamandalam Factoring Limited 8 8
directions. The Group intends to hold these assets till beginning on or after the 1 April 2019. This amendment Total 3,68,654 3,50,560
maturity expects that any sale if any necessitated by had no significant impact on the Consolidated financial
requirements are likely to be infrequent and immaterial. statements of the group. ` in lakhs
As at 31st March 2021 As at 31st March 2020
Particulars Notional Fair Fair Notional Fair Fair
amounts Value Value amounts Value Value
-Assets -Liabilites -Assets -Liabilites
Note 9 : DERIVATIVE FINANCIAL INSTRUMENTS
Part I
(i) Other derivatives - Cross Currency Interest Rate Swap 2,24,373 2,634 914 2,34,373 11,420 -
(iii) Forward Contracts 1,40,286 - 11,828 - - -
Total Derivative financial Instruments 5,04,945 4,587 12,742 2,34,373 11,420 -
Part II
Included in above (Part I) are derivatives held for hedging and risk
management purposes as follows:
(i) Cash flow hedging:
Others - Cross currency interest rate swap 2,24,373 2,634 914 2,34,373 11,420 -
(iii) Forward Contracts 1,40,286 - 11,828 - - -
Total Derivative financial Instruments 5,04,945 4,587 12,742 2,34,373 11,420 -
205 206
Note 9 : DERIVATIVE FINANCIAL INSTRUMENTS (Contd.) Note : 11 LOANS (At amortised cost)
` in lakhs
The Group has a Board approved policy for entering into derivative transactions. Derivative transaction represents Currency ,Interest Rate
Swaps and forward contracts . The Group undertakes such transactions for hedging interest/foreign exchange risk on borrowings. The March 31,2021 March 31,2020
Asset Liability Management Committee and Business Committee periodically monitors and reviews the risks involved. Loan - Oustanding Value
The notional amount for interest rate swap represents the foreign currency borrowing on which Company has entered to hedge the White Data System India Private Limited - Associate 340 340
variable interest rate. Impairment Provision
` in lakhs White Data System India Private Limited - Associate* 0 0
Particulars As at As at * Represents amount less than ` 50,000
March 31,2021 March 31,2020
Note : 11.1 LOANS
Note : 10 RECEIVABLES
An analysis of changes in the gross carrying amount and corresponding ECL allowances in relations to loans
(i) Trade Receivables ` in lakhs
Considered Good* 5,064 2,687 Gross Carrying amount Impairment allowance
Unsecured - Considered good 597 332 Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
5,661 3,019
Provision for Impairment on receivables (1) - Bills discounted
5,660 3,019 Opening as on April 1, 2020 5,141 43 3,414 8,598 31 4 3,173 3,208
Trade Receivables credit impaired 44 17 New assets originated / Increase in 9,678 - 430 10,108 57 - 125 182
Provision for Impairment on receivables (44) (17) existing assets (Net)
Total Trade receivables Exposure de-recognised / matured / repaid (5,141) - (147) (5,288) (31) - (103) (134)
Considered good 5,661 3,019 Transfer to Stage 3 - (43) 42 (1) - (4) 4 -
Trade Receivables credit impaired 44 17 Impact on account of exposures transferred - - - - - - 38 38
Total 5,705 3,036 during the period between stages
Provision for Impairment on receivables (45) (17) Impact of changes on items within - - - - - - 197 197
Subtotal (i) 5,660 3,019
the same stage
(ii) Other Receivables
Closing as on March 31, 2021 9,678 - 3,739 13,417 57 - 3,434 3,491
Considered Good* 4,211 3,536
Subtotal (ii) 4,211 3,536 Term loans
Total (i)+(ii) 9,871 6,555 Opening as on April 1, 2020 52,68,333 2,02,022 2,12,917 56,83,272 39,091 23,342 86,656 1,49,089
New assets originated / Increase 24,24,901 15,298 7,604 24,47,803 37,558 6,175 2,704 46,437
*Includes dues from related parties(Refer Note 39) in existing assets (Net)
No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Exposure de-recognised / matured / repaid (11,85,261) (58,821) (47,464) (12,91,546) (20,163) (4,486) (8,028) (32,677)
` in lakhs Transfer to Stage 1 65,509 (56,814) (8,695) - 8,889 (6,055) (2,834) -
Particulars As at As at Transfer to Stage 2 (3,52,885) 3,59,980 (7,095) - (8,308) 10,745 (2,437) -
March 31,2021 March 31,2020 Transfer to Stage 3 (81,332) (43,717) 1,25,049 - (2,120) (5,357) 7,477 -
Note : 11 LOANS (At amortised cost) Impact on account of exposures transferred 139 10,451 7,862 18,452 112 48,112 34,511 82,735
(A) during the period between stages
(i) Bills Discounted 13,417 8,598
Impact of changes on items within the - - 8,382 8,382 - - 19,077 19,077
(ii) Term loans 68,14,958 56,83,272
same stage
Total (A) - Gross 68,28,375 56,91,870
Write off (14,318) (5,290) (31,797) (51,405) (1,388) (1,512) (20,811) (23,711)
Less: Impairment Allowance for (i) & (ii) (2,44,441) (1,52,297) Closing as on March 31, 2021 61,25,086 4,23,109 2,66,763 68,14,958 53,671 70,964 1,16,315 2,40,950
Total (A) - Net 65,83,934 55,39,573 Bills Discounted
(B) Opening as on April 1, 2019 5,367 40 3,453 8,860 13 3 3,157 3,173
(i) Secured 67,85,357 56,63,436 New assets originated / Increase in 5,123 42 250 5,415 31 4 100 135
(ii) Unsecured 43,018 28,434 existing assets (Net)
Total (B) - Gross 68,28,375 56,91,870 Exposure de-recognised / matured / repaid (5,349) (39) (289) (5,677) (13) (3) (230) (246)
Less: Impairment Allowance (2,44,441) (1,52,297) Transfer to Stage 3 - - - - - - - -
Total (B) - Net 65,83,934 55,39,573 Impact on account of exposures transferred - - - - - - - -
All loans are in India and have been granted to individuals or entities other than public sector. during the year between stages (net)
Secured indicates loans secured, wholly or partly, by way of hypothecation of automobile assets and / or pledge of securities and / or Impact of changes on items within the - - - - - - 146 146
equitable mortgage of property and / or advances generated out of loans and / or equipments same stage (net)
Term loans includes unsecured short term loan to an associate. The loans have been classified under Stage 1 Category at the various Closing as on March 31, 2020 5,141 43 3,414 8,598 31 4 3,173 3,208
reporting periods and related impairment provision as per the Group's accounting policy has been created. The details of the same are
disclosed below:
207 208
Note : 11.1 LOANS (Contd.) Note : 12 INVESTMENTS (Contd.)
` in lakhs
Gross Carrying amount Impairment allowance Analysis of changes in the gross carrying amount and corresponding ECL allowances in relation to Investment at Amortised Cost
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Particulars Gross carrying Impairment
amount - Stage 1 allowance -
Term loans Stage 1
Opening as on April 1, 2019 49,97,273 2,07,617 1,40,398 53,45,288 18,690 19,724 51,484 89,898
Opening as on April 1, 2020 - -
New assets originated / Increase in 25,49,193 25,834 9,514 25,84,541 28,640 3,982 4,031 36,653
New assets originated 1,54,589 -
existing assets (Net)
Exposure matured / repaid - -
Exposure de-recognised / matured / repaid (20,60,421) (1,13,388) (48,497) (22,22,306) (13,214) (5,073) (7,497) (25,784)
Closing as on March 31, 2021 1,54,589 -
Transfer to Stage 1 59,640 (55,972) (3,668) - 6,161 (5,184) (977) -
# represents amount less than ` 1 lakh.
Transfer to Stage 2 (1,84,591) 1,87,214 (2,623) - (811) 1,491 (680) -
Transfer to Stage 3 (76,058) (42,931) 1,18,989 - (348) (3,981) 4,329 -
Impact on account of exposures transferred 139 682 2,562 3,383 232 14,604 32,867 47,703
` in lakhs
during the year between stages
March 31,2021 March 31,2020
Impact of changes on items within - - 4,489 4,489 - - 8,679 8,679
Note : 13 OTHER FINANCIAL ASSET
the same stage
At amortised cost
Write off (16,842) (7,034) (8,247) (32,123) (259) (2,221) (5,580) (8,060)
Unsecured - considered good (unless otherwise stated)
Closing as on March 31, 2020 52,68,333 2,02,022 2,12,917 56,83,272 39,091 23,342 86,656 1,49,089
Security deposits 5,397 4,949
ECL across stages have been computed on collective basis.
Interest only strip receivable 41,406 35,782
The Group uses Days past due of the customer to determine the credit quality of loans
Covid Ex-gratia Claim Receivable 9,647 -
` in lakhs Other advances (Refer Note 39) 2,995 3,182
Total 59,445 43,913
March 31,2021 March 31,2020
Note : 12 INVESTMENTS
Investment in Equity Instruments*
a) Unquoted - FVOCI**
` in lakhs
Amaravathi Sri Venkatesa Paper Mills Limited
293,272 Equity shares of ₹ 10 each fully paid up# - - March 31,2021 March 31,2020
Saraswat Co-operative Bank Limited Note : 14 DEFERRED TAX
1,000 Equity shares of ₹ 10 each fully paid up# - - Deferred Tax Assets
The Shamrao Vithal Co-operative Bank Limited Impairment allowance for financial instruments 61,471 37,741
1,000 Equity shares of ₹ 25 each fully paid up# - - Provision for Contingencies and undrawn commitments 1,132 1,004
Chennai Willingdon Corporate Foundation Provision for Claw back - 1
5 shares of ₹ 10 each: cost ₹ 50 only# - - Provision for Compensated Absences and Gratuity 1,812 1,313
Chola Insurance Services Private Ltd. Impact of Effective interest rate adjustment on Financial Assets 6,281 7,815
Contract liability as per IND AS 115 262 413
19,133 Equity shares of ₹10 each fully paid up 2 2
Difference in depreciation as per Books of Accounts and Income Tax Act, 1961 1,604 968
b) Unquoted - FVTPL
Carry forward of tax losses - 254
Faering Capital India Evolving Fund
MAT credit entitlement 26 293
21,662 units ( as on March 31, 2020 - 27,263 units ) of ₹10 each fully paid up 288 302 Items recognised in OCI 3,933 2,762
c) Quoted - FVOCI Others 637 607
Bombay Stock Exchange Limited (A) 77,158 53,171
65,000 Equity shares of ₹ 1 each( as on March 31, 2020) of ₹ 2 each fully paid up 371 194 Deferred Tax Liability
Madras Enterprises Limited Impact of Effective interest rate adjustment on Financial Liabilities 261 424
2,85,000 Equity shares of ₹ 1 each fully paid up# - - (B) 261 424
Coromandel Engineering Co. Ltd Net Deferred Tax Assets (A) - (B) 76,897 52,747
25,00,100 Equity shares of ₹ 10 each fully paid up 675 295
d) Investment in Government Securities - amortised cost 1,54,589 -
(Issued by Government of India)
Total 1,55,925 793
*Investments are made in India
** The Group has designated certain unquoted investments as FVOCI on the basis that these are not held for trading.
209 210
Note : 14 DEFERRED TAX (Contd.) Note : 15 INVESTMENT PROPERTIES (Contd.)
` in lakhs
i) Income earned and expense incurred in connection with Investment Property
Particulars Year ended March 31,2021 Year ended March 31,2020 ` in lakhs
Income OCI Income OCI Particulars Year ended Year ended
Statement Statement 31.03.2021 31.03.2020
Deferred Tax Assets Rental Income 4 4
Impairment allowance for financial instruments (23,730) - (5,311) - Direct Operating expense from property that generated rental income 1 1
Direct Operating expense from property that did not generated rental income - -
Provision for Contingencies and undrawn commitments (128) - 375 -
Provision for Claw back 1 - 4 - ii) Contractual obligations
Provision for Compensated Absences and Gratuity (499) - (33) - There are no contractual obligations to purchase, construct or develop investment property.
Impact of Effective interest rate adjustment on Financial Assets 1,534 - 1,946 - iii) Leasing Arrangements
Contract liability as per IND AS 115 151 - 582 - Certain investment properties are leased out to tenants under cancellable operating lease.
Difference in depreciation as per Books of Accounts and Income Tax Act, 1961 (636) - (297) - iv) Fair Value ` in lakhs
Carry forward of tax losses and MAT entitlement credit 439 - 11 - Particulars As at As at
Others (30) - (231) - March 31,2021 March 31,2020
(A) (22,898) - (2,954) - Investment Property 304 299
Deferred Tax Liability
v) Sensitivity analysis
Impact of Effective interest rate adjustment on Financial Liabilities 163 - 432 -
Re-measurement gains / (losses) on defined benefit plans (Net) - 33 - 127 Particulars Valuation Significant Range Sensitivity of Fair value Sensitivity
technique unobservable (Weighted avg) the input to (` in lakhs) (` in lakhs)
Cashflow Hedge Reserve - 1,138 - 3,261
inputs fair value
(B) 163 1,171 432 3,388
Investment property Based on Price per `7,000 - `13,000 5% 304 15
Net deferred tax charge / (reversal) (A) - (B) (23,061) (1,171) (3,386) (3,388)
As at March 31 2021 Market value Sq. feet per Sq. feet
Investment property Based on Price per `7,000 - `13,000 5% 299 15
Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on 25th November 2019, the Group had exercised the option As at March 31 2020 Market value Sq. feet per Sq. feet
permitted u/s 115BAA of the Income Tax Act, 1961, to compute income tax at revised rate (i.e.25.17%) from current financial
` in lakhs
year and accordingly, had re-measured deferred tax as at April 1, 2019. The re-measurement has resulted in additional tax charge of
` 12,845 lakhs in the statement of profit and loss and additional tax benefit of ` 172 lakhs in other Comprehensive income for the Particulars Freehold Computer Office Furniture Leasehold Vehicles Buildings Total
previous year. Land Equipment Equipment and Fixtures Improvements (Refer Note below)
` in lakhs Own Right of
Particulars Total Assets Use Asset
Note : 16 PROPERTY, PLANT AND EQUIPMENT
Note : 15 INVESTMENT PROPERTIES
Gross carrying amount as at 3,956 5,946 2,170 1,863 3,722 1,607 2,566 - 21,830
Gross carrying amount as at April 1, 2019 14
April 1, 2019
Additions -
Additions - 2,463 735 685 1,359 580 137 15,289 21,248
Disposals - Disposals - 18 57 85 40 201 398 - 799
Gross carrying amount as at March 31, 2020 14 Gross carrying amount as at 3,956 8,391 2,848 2,463 5,041 1,986 2,305 15,289 42,279
Additions - March 31, 2020
Disposals - Additions - 1,447 169 81 142 218 - 1,563 3,620
Gross carrying amount as at March 31, 2021 14 Disposals - 25 24 6 14 408 - 37 514
Accumulated depreciation and impairment Gross carrying amount as at 3,956 9,813 2,993 2,538 5,169 1,796 2,305 16,815 45,385
Balance as at April 1, 2019 0 March 31, 2021
Depreciation for the year 0 Accumulated depreciation /
Depreciation on disposals - amortisation and impairment
Balance as at March 31, 2020** Balance as at April 1, 2019 - 3,274 931 1,134 1,478 420 96 - 7,333
Depreciation for the period 1 Depreciation for the year - 2,076 567 657 1,031 373 425 4,259 9,388
Depreciation on disposals 0 Depreciation on disposals - 20 42 67 30 121 398 - 678
Balance as at March 31, 2021** 1 Balance as at March 31, 2020 - 5,330 1,456 1,724 2,479 672 123 4,259 16,043
Net Carrying amount Depreciation for the period - 1,975 539 296 911 390 43 4,645 8,799
As at March 31, 2020 14 Depreciation on disposals - 17 13 6 12 224 - 11 283
As at March 31, 2021 13 Balance as at March 31, 2021 - 7,288 1,982 2,014 3,378 838 166 8,893 24,559
Useful Life of the asset (In Years) 60 Net Carrying amount
As at March 31, 2020 3,956 3,061 1,392 739 2,562 1,314 2,182 11,030 26,236
As at March 31, 2021 3,956 2,525 1,011 524 1,791 958 2,139 7,922 20,826
The Group's investment property consists of 4 properties and has let out one property as at March 31, 2021 Useful Life of the asset (In Years) 3 5 5 5 5 60 upto 5
** represents amount less than ` 100,000 Method of depreciation Straight-line method
211 212
Note : 16 PROPERTY, PLANT AND EQUIPMEN (Contd.) Note : 17 INTANGIBLE ASSETS (Contd.)
All debt securities have been contracted in India
Note
19.1 Security
1. Details of Immovable properties of land and buildings, whose title deeds have been pledged in favour of Trustees for the benefit of
(i) Redeemable Non-Convertible Debentures - Medium-term is secured by way of specific charge on assets under hypothecation
debenture holders as security, has been explained in Note 19.1 relating to Vehicle Finance, Loan against property, Bills discounted and other loans and pari passu charge on immovable property
2. The Group has elected to include ROU assets pertaining to lease of buildings as part of the Property, plant and equipment as permitted situated at Chennai.
under paragraph 47 of Ind AS 116. (ii) The Group has not defaulted in the repayment of dues to its lenders.
` in lakhs 19.2 Details of Debentures - Contractual principal repayment value
Particulars Computer Software (i) Secured Redeemable Non-Convertible Debentures - Redeemable at par - No put call option
Note : 17 INTANGIBLE ASSETS No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest %
Gross carrying amount as at March 31, 2019 5,377 redemption
Additions 1,587 March 31,2021 March 31,2020
Disposals 204 ₹ in lakhs ₹ in lakhs
Gross carrying amount as at March 31, 2020 6,760 250 10,00,000 2,500 2,500 Nov-26 8.55
Additions 1,284
5,000 10,00,000 50,000 - Jul-25 7.92
Disposals -
Gross carrying amount as at March 31, 2021 8,044 1,500 10,00,000 15,000 - Oct-24 6.80
Accumulated Amortization and impairment 3,000 10,00,000 30,000 - Jul-24 7.38
Balance as at April 1, 2019 3,159 1,500 10,00,000 15,000 15,000 Apr-24 8.62
Amortization for the year 1,738
5,850 10,00,000 58,500 - Feb-24 6.45
Amortization on disposals 204
Balance as at March 31, 2020 4,693 5,500 10,00,000 55,000 - Dec-23 6.10
Amortization for the period 1,431 3,523 10,00,000 35,230 35,230 Sep-23 8.80
Amortization on disposals - 1,500 10,00,000 15,000 - May-23 7.50
Balance as at March 31, 2021 6,124
3,250 10,00,000 32,500 - Apr-23 6.26
Net Carrying amount
As at March 31, 2020 2,067 8,000 10,00,000 80,000 - Mar-23 5.85 to 5.68
As at March 31, 2021 1,920 3,350 10,00,000 33,500 13,500 Feb-23 5.70 to 7.41
Useful Life of the asset (In Years) 3 5,900 10,00,000 59,000 10,000 Dec-22 5.48 to 7.98
6,150 10,00,000 61,500 15,000 Nov-22 5.45 to 8.00
3,523 10,00,000 35,230 35,230 Sep-22 8.70
` in lakhs 2,000 10,00,000 20,000 - Jun-22 7.20
Particulars As at As at 1,050 10,00,000 10,500 10,500 Mar-22 8.35 to 9.06
March 31,2021 March 31,2020
2,000 10,00,000 20,000 - Dec-21 6.93
Note : 18 OTHER NON FINANCIAL ASSETS
Unsecured - considered good 3,523 10,00,000 35,230 35,230 Sep-21 8.45
Prepaid expenses 1,563 1,489 3,250 10,00,000 32,500 12,500 Aug-21 6.74 to 8
Capital advances 1,012 114 2,550 10,00,000 25,500 25,500 Jul-21 8.98
Other assets 81 424 4,010 10,00,000 40,100 40,100 Jun-21 8.49 to 8.52
GST Input Credit 2,183 935
4,100 10,00,000 41,000 - May-21 6.90
Total 4,839 2,962
4,770 10,00,000 47,700 47,700 Apr-21 8.09
1,500 10,00,000 - 15,000 Mar-21 8.85
` in lakhs 600 10,00,000 - 6,000 Feb-21 9.09
1,350 10,00,000 - 13,500 Jan-21 8.11
March 31,2021 March 31,2020
Note : 19 DEBT SECURITIES (at amortised cost) 3,500 10,00,000 - 35,000 Dec-20 8.00 to 8.98
Redeemable Non-Convertible Debentures Medium - Term - Secured 9,34,263 5,74,418 1,750 10,00,000 - 17,500 Oct-20 7.75
Commercial Papers - Unsecured 3,01,504 1,58,265 2,200 10,00,000 - 22,000 Jun-20 8.10 to 9.10
Total 12,35,767 7,32,683 4,800 10,00,000 - 48,000 May-20 8.12 to 8.90
800 10,00,000 - 8,000 Apr-20 8.10 to 9.02
8,50,490 4,62,990
213 214
Note : 19 DEBT SECURITIES (at amortised cost) (Contd.) Note : 20 BORROWINGS (Contd.)
20.1 Security
(ii) Secured Redeemable Non-Convertible Debentures - Redeemable at premium - No put call option (i) Secured term loans from banks and financial institution are secured by way of specific /pari passu charge on assets under
` in lakhs
No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹ hypothecation relating to automobile financing and loans against immovable property.
redemption price ₹ (ii) Loan repayable on demand is in the nature of Cash Credit from banks and is secured by way of floating charge on assets under
March 31,2021 March 31,2020 hypothecation and other assets.
₹ in lakhs ₹ in lakhs
(iii) The Group has not defaulted in the repayment of dues to its lenders.
1250 10,00,000 12,500 - Jul-25 14,61,481 4,61,481
(iv) Securitisation borrowing represents the net outstanding value (Net of Investment in Pass-through Certificates) of the proceeds
850 10,00,000 8,500 - Jul-25 13,53,045 3,53,045
received by the Group from securitisation trust in respect of loan assets transferred by the Group pursuant to Deed of Assignment.
500 10,00,000 5,000 5,000 Jan-23 12,54,470 2,54,470
The Group has provided Credit enhancement to the trust by way of cash collateral and Bank guarantee and also refer note 8
250 10,00,000 2,500 - Dec-24 12,93,960 2,93,960
350 10,00,000 3,500 - Oct-24 13,01,025 3,01,025
20.2 Details of term loans - Contractual principal repayment value
` in lakhs
1100 10,00,000 11,000 11,000 May-21 12,94,211 2,94,211 Rate of Interest Maturity Instalments Amount outstanding
1000 10,00,000 - 10,000 Mar-21 12,76,583 2,76,583 March 31,2021 March 31,2020
1150 10,00,000 - 11,500 Dec-20 11,92,230 1,92,230 Base Rate / MCLR < 1year 1 86,250 1,05,833
2050 10,00,000 - 20,500 May-20 12,63,916 2,63,916 2 1,25,016 1,38,750
190 10,00,000 - 1,900 Apr-20 12,56,100 2,56,100 3 30,000 57,188
500 10,00,000 - 5,000 Apr-20 13,54,976 3,54,976 4 1,78,750 53,334
800 10,00,000 - 8,000 Apr-20 12,74,682 2,74,682 8 60,395 60,000
43,000 72,900 12 20,000 -
1 - 2 years 1 1,40,000 92,917
2 1,92,917 96,667
(iii) Secured Redeemable Non-Convertible Debentures - Redeemable at par - with Put option 4 1,92,949 1,92,084
No. of Debentures Face Value ₹ Balance as at Due date of Put option Rate of 8 60,395 60,000
redemption date interest % 12 20,000 -
March 31,2021 March 31,2020 2 - 3 years 1 33,333 1,30,000
2 1,22,500 2,48,751
10 10,00,000 100 100 Aug-23 Jul-21 9.06 4 1,61,699 79,582
100 100 8 60,395 60,000
12 20,000 -
3 - 4 years 1 10,000 8,333
` in lakhs
2 80,000 1,63,334
March 31,2021 March 31,2020 4 1,41,699 60,000
Note : 20 BORROWINGS (Other than Debt Securities) at amortised cost 6 7,796 -
A) Term Loans 8 - 60,000
(i) (a) From Banks - Secured 12 20,000 -
- Rupee Loans 35,68,218 32,96,247 4 - 5 years 1 5,000 21,665
- Foreign currency Loans - 11,788 2 - 90,000
- External Commercial Borrowings 2,39,869 2,47,326 3 57,441 -
(b) From Banks - Unsecured 4 25,111 40,000
- Short term loans 20,000 - 7 - 9,375
ii) From Other Parties - Secured 9 15,000 -
(a) Financial Institutions - Rupee Loans 1,72,786 1,63,258 > 5 Years 1 - 5,000
(b) External Commercial Borrowings 1,37,230 - Base Rate/ MCLR + spread (0.05% to 0.92%) < 1year 1 3,85,000 3,37,500
(c) Securitisation - Rupee Loans 4,34,452 4,63,131 2 - -
B) Loan repayable on demand - Secured from Banks - Rupee Loans (Refer Note 8) 1,45,671 1,45,558 3 50,000 -
Total 47,18,226 43,27,308 4 - 80,000
1 - 2 years 1 35,000 4,92,500
Borrowings within India 43,41,127 40,79,982
2 30,000 -
Borrowings Outside India 3,77,099 2,47,326
3 50,000 18,750
215 216
20.2 Details of term loans - Contractual principal repayment value (Contd.) 20.2 Details of term loans - Contractual principal repayment value (Contd.)
Rate of Interest Maturity Instalments Amount outstanding Rate of Interest Maturity Instalments Amount outstanding*
4 - 72,500 3 - 4 years 1 10,119 -
6 - 12,500 3 3,750 -
2 - 3 years 1 70,000 18,750 4 37,500 -
2 30,000 30,000 Total 38,50,660 35,98,513
3 50,000 - USD 2Y MIBOR + Spread < 1year 1 - 4,000
4 - 72,500 1-2 years 1 7,500 -
6 - 12,500 USD 3M LIBOR + Spread < 1year 2 5,202 11,668
3 - 4 years 1 - 12,500 1-2 years 1 - -
2 - 30,000 4 20,807 -
4 - 72,500 2-3 years 4 20,807 -
6 - 12,500 USD 6M LIBOR + Spread < 1 year 1 - -
4- 5 years 1 - - 3 - 4 years 4 20,807 -
2 - 5,000 4 - 5 years 4 20,807 -
>5 Years - - >5 Years 9 46,815 -
Rate based on T Bill + Spread < 1 year 1 48,200 74,400 USD 6M LIBOR + Spread < 1year 1 36,553 -
2 15,000 32,500 1-2 years 1 1,31,589 37,830
4 41,667 2-3 years 1 - 1,36,188
1 - 2 years 1 41,050 29,400 3 - 4 years 1 67,257 -
2 12,500 4 - 5 years 1 - 69,607
4 66,667 25,000 Total 3,78,144 2,59,293
2 - 3 years 1 25,000 29,400
2 - 12,500 Details of Securitised loan
3 12,500 -
Rate of Interest Maturity Amount outstanding*
4 50,000 -
March 31,2021 March 31,2020
3 - 4 years 1 - -
4 - 5 years 3 - - Less than 1 year 1,75,343 1,58,012
Fixed Rate < 1year 1 51,000 - Fixed 1-2 year 1,09,355 1,24,382
2 16,000 12,200 (4.9% to 8%) 2-3 year 45,570 54,213
4 40,400 28,000 3-4 year 12,428 15,261
1 - 2 years 1 20,000 - 4-5 year 4,451 5,593
2 10,000 6,000 more than 5 years 12,990 17,222
4 39,400 40,400 Total 3,60,137 3,74,683
2 - 3 years 2 43,300 - Less than 1 year 6,501 6,753
4 24,400 39,400 Floating 1-2 year 6,925 7,928
3 - 4 years 2 55,400 - Base Rate/ MCLR - spread 2-3 year 7,459 8,439
4 - 24,400 (0.75% to 2.65%) 3-4 year 7,866 9,088
4 - 5 years 2 43,400 12,100 4-5 year 7,832 9,411
3Months Repo < 1year 1 42,500 - more than 5 years 37,198 46,706
2 15,000 - Total 73,781 88,325
3 3,333 - * Represents amounts to be paid to the securitisation trust as per the securitisation cash flows net of amounts to be received
4 82,976 18,000 against Investment in PTC.
8 36,000 -
12 83,333 - 20.3 Loan repayable on demand represents cash credit and overdraft facilities
1 - 2 years 1 8,333 30,000 ` in lakhs
2 15,000 - Particulars As at As at
3 3,333 - March 31,2021 March 31,2020
4 49,643 - Note : 21 SUBORDINATED LIABILITIES (at amortised cost)
8 36,000 36,000 Perpetual Debt - Unsecured 1,48,920 1,49,597
12 83,333 - Subordinated Debt - Unsecured
1 8,333 -
a) Rupee Denominated Bonds 40,684 40,677
2 - 3 years 2 15,000 -
3 3,334 - b) Other Subordinated Debts 2,29,402 2,50,278
4 49,643 - Total 4,19,006 4,40,552
6 41,667 -
(i) All Subordinated liabilities have been contracted in India except for Rupee denominated bonds.
8 - 36,000
(ii) The Group has not defaulted in the repayment of dues to its lenders.
217 218
21.1 Details of Subordinated Liabilities - Contractual principal repayment value
21.1 Details of Subordinated Liabilities - Contractual principal repayment value (Contd.)
(i) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt - Redeemable at par - No put call option
No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest % No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest %
redemption - Perpetual (increase by 100 bps
March 31,2021 March 31,2020 31.03.2021 31.03.2020 # if call option is not
₹ in lakhs ₹ in lakhs ₹ in lakhs ₹ in lakhs exercised on the due date)
400 1,00,00,000 40,000 40,000 Jan-30 9.25 1,031 10,00,000 10,310 10,310 Dec-23 12.50 to 12.60
3000 10,00,000 30,000 30,000 Aug-28 9.75 245 10,00,000 2,450 2,450 Oct-23 12.60
5300 10,00,000 53,000 53,000 Mar-28 9.05 1,000 5,00,000 5,000 5,000 Oct-23 12.90
1500 10,00,000 15,000 15,000 Aug-27 8.53 300 10,00,000 3,000 3,000 Feb-23 12.80
2500 10,00,000 25,000 25,000 Jun-27 8.78 to 8.80 1,450 10,00,000 14,500 14,500 Dec-22 12.70 to 12.80
100 10,00,000 1,000 1,000 Nov-26 9.20 860 5,00,000 4,300 4,300 Sep-22 12.75
150 10,00,000 1,500 1,500 Jun-24 11.00 2,000 5,00,000 10,000 10,000 Aug-22 12.90
50 10,00,000 500 500 May-24 11.00 200 5,00,000 1,000 1,000 Mar-22 12.50
250 10,00,000 2,500 2,500 Apr-24 11.00 700 5,00,000 3,500 3,500 Jan-22 12.50
250 10,00,000 2,500 2,500 Mar-24 11.00 3,500 5,00,000 17,500 17,500 Dec-21 12.50 to 12.95
200 10,00,000 2,000 2,000 Feb-24 11.00 320 5,00,000 1,600 1,600 Aug-21 12.50
250 10,00,000 2,500 2,500 Jan-24 11.00 413 5,00,000 2,065 2,065 Jul-21 12.50
2000 10,00,000 20,000 20,000 Nov-23 9.08 to 9.20 2,021 5,00,000 10,105 10,105 Jun-21 12.50
500 10,00,000 5,000 5,000 Oct-23 9.08 3,000 5,00,000 - 15,000 Oct-20 12.05
150 10,00,000 1,500 1,500 Sep-23 11.00 1,45,170 1,45,670
600 10,00,000 6,000 6,000 Dec-22 11.05 to 11.25 # Company can redeem using Call option on the maturity date with prior approval of RBI.
3,150 10,00,000 31,500 31,500 Nov-21 10.02 ` in lakhs
1,000 10,00,000 10,000 10,000 Jun-21 11.30 Particulars As at As at
1,000 10,00,000 10,000 10,000 May-21 11.30 March 31,2021 March 31,2020
100 10,00,000 - 1,000 Mar-21 11.00 Note : 22 OTHER FINANCIAL LIABILITIES
100 10,00,000 - 1,000 Feb-21 11.00
Unpaid dividend 74 73
150 10,00,000 - 1,500 Oct-20 11.00
500 10,00,000 - 5,000 Jul-20 10.70 Advance from customers 5,529 1,999
115 10,00,000 - 1,150 May-20 11.00 Security deposits received 80 216
1,000 10,00,000 - 10,000 Apr-20 11.00 Collections towards derecognised assets pending remittance 18,928 15,955
750 10,00,000 - - Dec-19 11.50 Lease liability (Refer Note 49) 9,253 12,425
2,59,500 2,79,150
Other liabilities 16,404 8,817
(ii) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt -Redeemable at premium - No put call option Total 50,268 39,485
No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹ ` in lakhs
redemption price ₹ Particulars As at As at
Note : 23 PROVISIONS
150 10,00,000 1,500 1,500 Nov-23 17,57,947 7,57,947 Provision for Employee Benefits
1,500 1,500
Compensated absences 6,594 5,182
6,594 5,182
(iii) Unsecured Redeemable Non-Convertible Debentures - Perpetual debt
Other Provisions
No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest % Provision for contingencies and service tax claims (Refer note 41) 4,347 3,838
- Perpetual (increase by 100 bps Provision for expected credit loss towards undrawn commitments (Refer note 41) 104 131
March 31,2021 March 31,2020 # if call option is not
4,451 3,969
₹ in lakhs ₹ in lakhs exercised on the due date)
Total 11,045 9,151
2000 5,00,000 10,000 - Mar-31 9.25
900 5,00,000 4,500 - Nov-30 9.30 ` in lakhs
1000 5,00,000 5,000 5,000 Dec-29 10.75 Particulars As at As at
1120 5,00,000 5,600 5,600 Mar-29 10.83 March 31,2021 March 31,2020
5000 5,00,000 25,000 25,000 Feb-29 10.88 Note : 24 OTHER NON FINANCIAL LIABILITIES
500 5,00,000 2,500 2,500 Aug-24 12.80 Income received in advance 1,150 1,712
174 10,00,000 1,740 1,740 Jul-24 12.90
Statutory liabilities 2,687 2,010
500 5,00,000 2,500 2,500 Jun-24 12.90
500 5,00,000 2,500 2,500 Feb-24 12.90 Others 859 955
50 10,00,000 500 500 Jan-24 12.60 Total 4,696 4,677
219 220
Note : 25 EQUITY SHARE CAPITAL (Contd.)
` in lakhs
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders

Nos. Amount Nos. Amount regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
Note : 25 EQUITY SHARE CAPITAL d) Issue of Shares on preferential basis and Qualified institutional placements
AUTHORISED On January 31, 2020 the Company alloted 2,81,25,000 equity shares of ₹ 2 each at a premium of ₹ 318 per share aggregating to
Equity Shares of ₹ 2 each with voting rights 1,20,00,00,000 24,000 1,20,00,00,000 24,000 ₹ 90,000 lakhs to eligbile investors through Qualified institutional placement.
Preference Shares of ₹ 100 each 5,00,00,000 50,000 5,00,00,000 50,000 On March 9, 2020 the Company alloted 93,45,794 equity shares of ₹ 2 each at a premium of ₹ 319 per share aggregating to
74,000 74,000 ₹ 30,000 lakhs to the holding company on preferential basis.
ISSUED ` in lakhs
Equity Shares of ₹ 2 each with voting rights 82,07,18,899 16,407 82,02,61,529 16,405 Particulars As at As at
March 31,2021 March 31,2020
16,407 16,405
SUBSCRIBED AND FULLY PAID UP Note : 26 OTHER EQUITY
Equity Shares of ₹ 2 each with voting rights 82,00,35,129 16,400 81,95,77,759 16,391 Statutory Reserve (Refer Note a)
Add : Forfeited Shares 6,54,500 7 6,54,500 7 Balance at the beginning of the year 1,28,046 1,06,046
16,407 16,398 Add: Amount transferred from retained earnings 31,000 22,000
Closing balance at the end of the year 1,59,046 1,28,046
a) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year/period: Capital Reserve (Refer Note b)
` in lakhs Balance at the beginning of the year 4 4

Nos. Amount Nos. Amount Add: Changes during the year - -
Equity Shares Closing balance at the end of the year 4 4
At the beginning of the period 81,95,77,759 16,391 15,63,59,113 15,636 Capital Redemption Reserve (Refer Note c)
Additional shares pursuant to share split during the period 62,54,36,452 - Balance at the beginning of the year 3,300 3,300
Issued during the year Add: Changes during the year - -
a) Qualified institutional Placement - 2,81,25,000 563 Closing balance at the end of the year 3,300 3,300
b) Preferential Issue to the Holding Company - 93,45,794 187 Securities Premium Account (Refer Note d)
c) Employees Stock Option (ESOP) Scheme 4,57,370 9 3,11,400 5
Balance at the beginning of the year 2,85,678 1,66,850
Outstanding at the end of the period/ year 82,00,35,129 16,400 81,95,77,759 16,391
Add: Premium on issue of shares on preferential basis (Refer note 25A) - 29,813
Forfeited shares
Equity Shares - Amount originally paid up 6,54,500 7 6,54,500 7 Add: Premium on issue of shares on Qualified Institutional placement) (Refer note 25A) - 89,437
Add: Premium on ESOPs exercised 927 499
Terms/rights attached to Equity shares Less: Share issue expenses - (921)
The Company has only one class of equity shares having a par value of ₹ 2 per share. All these shares have the same rights and Closing balance at the end of the year 2,86,605 2,85,678
preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the Board of Directors General Reserve (Refer Note e)
is subject to the approval of the shareholders in the ensuing Annual General Meeting except for interim dividend. Balance at the beginning of the year 3,00,967 2,50,967
Repayment of capital will be in proportion to the number of equity shares held. Add: Amount transferred from retained earnings 75,000 50,000
Add: Amount transferred from Share Based Payment Reserve 136 -
b) Equity Shares held by Holding Company
Closing balance at the end of the year
3,76,103 3,00,967
Share Based Payments Reserve (Refer Note f)
March 31,2021 March 31,2020
Balance at the beginning of the year 3,017 1,861
Cholamandalam Financial Holdings Limited (formerly known as 37,28,85,889 37,28,85,889
"TI Financial Holdings Limited") - Holding Company Addition during the year 563 1,156
Transfer to General reserve (136) -
Closing balance at the end of the year 3,444 3,017
Retained Earnings (Refer Note g)
c) Details of shareholding more than 5% shares in the Company ` in lakhs Balance at the beginning of the year 89,808 76,848

Particulars As at March 31,2021 As at March 31,2020 Profit for the year 1,52,086 1,05,372
Nos. % holding Nos. % holding
Less:
in the class in the class
Dividend
Equity Shares
Equity - Final - (8,798)
Cholamandalam Financial Holdings Limited - Holding Company 37,28,85,889 45.47 37,28,85,889 45.50
Equity - Interim (10,656) (7,819)
221 222
` in lakhs
March 31,2021 March 31,2020 Particulars
Particulars Year ended As atYear ended
As at
31.03.2021 March 31,2021 March 31,2020
31.03.2020
Distribution tax on Equity Dividend - (3,416)
REVENUE FROM OPERATIONS
Transfer to Statutory Reserve (31,000) (22,000) Note: 27A
Transfer to General Reserve (75,000) (50,000) (i) Interest - on financial assets measured at amortised cost
Re-measurement Gain / (Loss) on Defined Benefit Obligation (Net) transferred to Retained Earnings (100) (379) (a) Loans
Closing balance at the end of the year 1,25,138 89,808 - Bills Discounting 766 721
- Term Loans 8,86,955 7,83,412
Cashflow hedge reserve (Refer Note h)
(b) Bank Deposits
Balance at the beginning of the year (7,179) (1,208) - under lien 2,147 3,845
Addition (3,383) (5,971) - free of lien 27,009 20,526
Closing balance at the end of the year (10,562) (7,179) (c) Other Deposits
FVOCI Reserve (Refer Note i) - Deposits with Financial Institutions 2,299 3,961
Balance at the beginning of the year (63) 561 - Investment in Government Securities 3,301 -
Total (A) 9,22,477 8,12,465
Addition 558 (624)
Note: 27B
Deduction - - (i) Fee & Commission income *
Closing balance at the end of the year 495 (63) - Term loans 20,685 18,987
Share Application Money pending Allotment at the end of the period /year (Refer note j) - 10 - Others 6,254 5,883
Total Other Equity 9,43,573 8,03,588 Total (B) 26,939 24,870
*Services are transferred at a point in time
a) Statutory reserve represents the reserve created as per Section 45IC of the RBI Act, 1934, pursuant to which a Non-Banking Note: 27C
Financial Company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every Net gain on fair value changes on FVTPL - Realised
year as disclosed in the Statement of Profit and Loss account, before any dividend is declared. - Income from mutual funds 487 1,569
Total (C) 487 1,569
b) Capital reserve represents the reserve created on account of amalgamation of Chola Factoring Limited in the year 2013-14.
Note: 27D
c) Capital redemption reserve represents the amount equal to the nominal value of shares that were redeemed during the prior (i) Sale of Services (Refer note below)
years. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions (a) Servicing and Collection fee on Assignment 691 485
of the Companies Act, 2013 (b) Other Service Income 7,346 7,085
d) Securities premium reserve is used to record the premium on issue of shares. The premium received during the period represents Total (D) 8,037 7,570
the premium received towards allotment of equity shares issued under Qualified institutional placement, Preferential allotment to Note: Timing of revenue recognition
holding company and ESOP scheme. The reserve can be utilized only for limited purposes such as issuance of bonus shares, buy back Services transferred at a point in time 7,437 6,970
of its own shares and securities in accordance with the Section 52 of the Companies Act, 2013 Services transferred over a time 600 600
e) The general reserve is a free reserve, retained from Group’s profits and can be utilized upon fulfilling certain conditions in Total 8,037 7,570
accordance with specific requirement of Companies Act, 2013. Details related to services transferred over a time
f ) Under IND AS 102, fair value of the options granted is required to be accounted as expense over the life of the vesting year as a) Contract balances
employee compensation costs, reflecting the year of receipt of service. ` in lakhs
g) The amount that can be distributed by the Group as dividends to its equity shareholders is determined based on the financial
March 31, 2021 March 31, 2021
position of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported in
retained earnings are not distributable in entirety. Contract Liabilities 1,041 1,641
h) Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of Contract liability relates to payments received in advance of performance under the contract. Contract liability is recognised as revenue
hedging instruments entered into for cash flow hedges, which shall be reclassified to profit or loss only when the hedged as (or when) we perform under the contract.
transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item, consistent with the
Group accounting policies. b) Movement in Contract liability during the period as follows ` in lakhs
i) FVOCI Reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair Particulars Year ended Year ended
value through Other Comprehensive Income. March 31,2021 March 31,2020
j) Share application money pending allotment as at March 31, 2020 represents amount received towards 5000 equity Contract liability at the beginning of the period 1,641 2,241
shares of the Company pursuant to ESOP scheme and have been subsequently allotted. Revenue Recognised during the period 600 600
Contract liability at the end of the period 1,041 1,641
Proposed Dividend
c) Total Revenue from contracts with Customer ` in lakhs
The Board of Directors of the Company have recommended a final dividend of 35% being ₹ 0.70 per share on the equity shares of Particulars Year ended Year ended
the Company, for the year ended March 31, 2021 ( ₹ nil per share - March 31, 2020) which is subject to approval of shareholders. March 31,2021 March 31,2020
Consequently the proposed dividend has not been recorded in the books in accordance with IND AS 10.
Total Revenue from contracts with Customer* 34,976 32,440
*Represents fee income (note 27 B) and sale of services (note 27 D)
223 224
Note : 27 REVENUE FROM OPERATIONS (Contd.) ` in lakhs
d) Due to Group’s nature of business and the type of contracts entered with the customers, the Group does not have any
March 31,2021 March 31,2020
difference between the amount of revenue recognized in the statement of profit and loss and the contracted price.
Note : 32 OTHER EXPENSES
e) Impairment recognised for Contract asset is Nil (Nil - March 31, 2020)
Rent and facility charges 625 1,187
f) Performance Obligation:
Rates and Taxes 2,098 1,197
- Servicing and Collection fee on Assignment: to collect the receivable from the customer and transfer the same to the assignee
representative. Energy cost 1,011 1,444
- Other Service Income: To provide required details to the customer and enable space for advertising at the branches. Repairs and Maintenance 360 409
` in lakhs Communication Costs 2,814 3,104
g) There are no significant return / refund / other obligations for any of the above mentioned services.
Business development expense 34 27
Particulars Year ended Year ended Brokerage 290 161
March 31,2021 March 31,2020
Printing and Stationery 1,233 1,456
Note : 28 OTHER INCOME
Advertisement and publicity Expenses 1,267 1,454
Interest Income
Directors Fees, allowances and expenses 110 87
on Income tax refund 378 -
Dividend Income from long-term investments 13 37 Auditors' Remuneration 99 169
Rent 25 9 Legal and Professional Charges 4,277 4,527
Profit on sale of Fixed Assets (Net) 2 - Insurance 1,647 1,579
Miscellaneous Income 20 16 Travelling and Conveyance 2,677 5,683
Total 438 62 Information Technology Expenses 3,309 2,569
` in lakhs Loss on Sale of Property, Plant and Equipment (Net) 54 13
Particulars Year ended Year ended Change in fair value of financial instruments - 140
March 31,2021 March 31,2020 Recovery Charges 26,657 28,959
Note : 29 FINANCE COSTS Corporate Social Responsibility Expenditure((Refer Note 32.1) 3,207 2,888
Interest on financial liabilities measured at amortised cost Outsource cost 22,469 24,017
- Debt Securities 74,325 1,01,821 Miscellaneous Expenses (Refer note 32.2) 293 1,452
- Borrowings Other than Debt securities 3,37,890 3,12,236 74,531 82,522
- Subordinated Liabilities 42,835 42,567 Less : Expenses Recovered (122) (143)
Others
Total 74,409 82,379
- Bank charges 1,546 1,363
- Interest on lease liability 958 1,183 32.1 Details of CSR expenditure
Total 4,57,554 4,59,170 Year ended Year ended
March 31,2021 March 31,2020
` in lakhs Gross Amount required to be spent towards CSR u/s 135 (5) of Companies Act , 2013 (A) 3,207 2,887
Particulars Year ended Year ended Amount spent during the year (B)
March 31,2021 March 31,2020
(a) Construction/ acquisition of asset - -
Note : 30 IMPAIRMENT ON FINANCIAL INSTRUMENTS (b) Others 3,207 2,888
Loss Assets Written Off (Net) / disposal of repossessed assets* 40,066 30,427 Excess/(shortfall) (A-B) - -
Impairment provision- Loans - measured at amortised cost 92,145 59,308 None of the CSR projects undertaken by the Company has been fall under definition of "On-going Projects"
Total 1,32,211 89,735 There is no amount required to be contributed to specified fund u/s 135(6)
* Includes Loss on disposal of repossessed vehicles - Gross - Lakhs for the year ended March 31, 2021 - ` 27,211 (` 31,314 lakhs - March 31, 2020) 32.2 Donation to electoral trust - 500
Note : 33 EARNINGS PER SHARE
` in lakhs
March 31,2021 March 31,2020
March 31,2021 March 31,2020
Profit After Tax (₹ in lakhs) 1,52, 086 1,05,372
Note : 31 EMPLOYEE BENEFITS EXPENSE
Preference Dividend Paid (including tax thereon) (₹ in lakhs) - -
Salaries, Bonus and Commission 73,482 62,799
Profit After Tax Attributable to Equity Shareholders (₹ in lakhs) 1,52,086 1,05,372
Contribution to Provident and Other Funds Weighted Average Number of Equity Shares (Basic) 81,96,69,366 78,71,82,549
- Employees' Provident Fund 3,006 2,913 Add: Dilutive effect relating to ESOP/CCPS 14,30,020 8,80,135
- Superannuation Fund 344 333 Weighted Average Number of Equity Shares (Diluted) 82,10,99,386 78,80,62,834
Share based employee payments 564 1,161 Earnings per Share - Basic (₹) 18.55 13.39
Gratuity Expense (Refer note 37) 1,136 982 Earnings per Share - Diluted (₹) 18.52 13.37
Staff Welfare Expenses 652 1,844 Face Value Per Share (₹) 2.00 2.00
Total 79,184 70,032 Note: Earnings per Share calculations are done in accordance with Ind AS 33 "Earnings per Share".
225 226
Note : 34 INCOME TAX RECONCILIATION Note : 35 TRANSFER OF FINANCIAL ASSETS (Contd.)
The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been charged at 35.2 Transferred financial assets that are derecognised in their entirety but where the Group has continuing involvement
Indian corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the
year ended March 31, 2021 and March 31, 2020, is as follows The Group has not transferred any assets that are derecognised in their entirety where the Group continues to have continuing involvement.
` in lakhs
Particulars Year ended Year ended Note : 36 MICRO, SMALL & MEDIUM ENTERPRISES
March 31,2021 March 31,2020
Based on and to the extent of the information received by the Group from the suppliers during the year regarding their status under the
Accounting profit before tax from continuing operations 2,04,790 1,55,882
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, there are no amounts due to
Income tax rate of 25.17% (March 31, 2020: 25.17%) 51,546 39,235
MSME as at March 31, 2021 and as at March 31, 2020
Effects of:
Impact of difference in tax base for Donations & CSR expense 813 324 The relevant particulars are furnished below:
Share based payment expense – No deduction claimed under tax 141 290
` in lakhs
Impact of Deduction u/s 80JJA (28) (19) Particulars As at As at
Other adjustments 179 733 March 31,2021 March 31,2020
Impact of changes to enacted rate on opening Deferred tax asset - 12,845 Principal amount due to suppliers under MSMED Act, as at the year end - 70
Income tax expense reported in Consolidated statement of Profit and Loss 52,651 53,408 Interest accrued and due to suppliers under MSMED Act, on the above amount as at the year end - -
Payment made to suppliers (other than interest) beyond the appointed day, during the year - -
The effective income tax rate for March 31, 2021 is 25.17% (March 31, 2020: 25.17%). Interest paid to suppliers under MSMED Act (other than Section 16) - -
Note : 35 TRANSFER OF FINANCIAL ASSETS Interest paid to suppliers under MSMED Act (Section 16) - -
Interest due and payable to suppliers under MSMED Act, for payments already made - -
35.1 Transferred financial assets that are not derecognised in their entirety
Interest accrued and remaining unpaid at the year end to suppliers under MSMED Act - -
The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred
financial assets do not qualify for derecognition, together with the associated liabilities: Note : 37 RETIREMENT BENEFIT
A) Securitisation A) Defined contribution plan
The Group has Securitised certain loans, however the Group has not transferred substantially all risks and rewards, hence these assets A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions and where there is no legal or
have not been de-recognised. ` in lakhs constructive obligation to pay further contributions. During the period, the Group recognised ` 3,006 lakhs (Previous year - ` 2,913 lakhs) to
Provident Fund under Defined Contribution Plan, ` 344 lakhs (Previous year - ` 333 lakhs) for Contributions to Superannuation Fund and ` 50
March 31,2021 March 31,2020
lakhs (Previous year - ` 108 lakhs) for Contributions to Employee State Insurance Scheme in the Statement of Profit and Loss.
Securitisations
Carrying amount of transferred assets measured at amortised cost 4,75,242 4,92,803 B) Gratuity
Carrying amount of associated liabilities (Borrowings other than Debt securities - measured at amortised cost) 4,63,916 4,63,131 The Group’s defined benefit gratuity plan requires contributions to be made to a separately administered fund. The gratuity plan is funded
Fair value of assets 4,76,131 4,85,991 with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee
Fair value of associated liabilities 4,37,374 4,65,551 who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of
Net position at Fair Value 38,757 20,440 service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the statement
B) Direct bilateral assignment of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:
The Group has transferred certain loans (measured at amortised cost) by way of direct bilateral assignment, as a source of finance.
Change in Defined Benefit Obligation and Fair Value of Plan assets:
As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the buyer, the assets have
been de-recognised from the Group’s balance sheet. ` in lakhs
The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain/(loss) on March 31,2021 March 31,2020
derecognition, per type of asset.
Defined Benefit Obligation at the beginning of the year 6,118 4,586
` in lakhs
Particulars As at As at Current Service Cost 1,042 908
March 31,2021 March 31,2020 Interest Cost 395 334
Assignment Remeasurement Losses/(Gains)
Carrying amount of de-recognised financial asset 4,16,042 5,12,585 a. Effect of changes in financial assumptions 89 174
Carrying amount of Retained Assets at amortised cost 47,502 55,789 b. Effect of experience adjustments 37 (4)
c. Changes in demographic assumptions - -
` in lakhs Benefits Paid (230) (174)
Particulars Year ended Year ended Transfer in/out - (18)
March 31,2021 March 31,2020
Defined Benefit Obligation at the end of the year 7,451 6,118
Assignment
Gain on sale of the de-recognised financial asset - 24,727
227 228
Note : 37 RETIREMENT BENEFIT (Contd.) ` in lakhs Note : 37 RETIREMENT BENEFIT (Contd.)
Particulars Year ended Year ended Particulars March 31, 2021 March 31, 2020
March 31,2021 March 31,2020 Increase Decrease Increase Decrease
Change in Fair value of Plan Assets Sensitivity Analysis:
Fair Value of Plan Assets at the Beginning of the Year 4,679 3,555 Discount Rate (+/- 1%) 6,831 7,946 6,866 7,775
Expected Returns on Plan Assets 301 260 Salary Growth Rate (+/- 1%) 7,884 7,049 7,718 6,901
Employer’s Contribution 677 1,062 Attrition Rate (+/- 50% of attrition rates) 7,262 7,731 7,050 7,636
Benefits Paid (230) (174) Mortality Rate (+/- 10% of mortality rates) 7,303 7,303 5,987 5,987
Return on plan assets (excluding interest income) (5) (24)
Notes:
Transfer in/out - -
1. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
Fair Value of Plan Assets at the end of the year 5,422 4,679
Amount Recognised in the Balance Sheet
2. The Company’s best estimate of contribution during the next year is ₹ 3,086 lakhs
Fair Value of Plan Assets as at the End of the Year 5,422 4,679 3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
Defined benefit obligation at the End of the Year (7,451) (6,118) term of the obligation.
Amount Recognised in the Balance Sheet under Other Payables (2,029) (1,439) 4. The entire Plan Assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC).
Cost of the Defined Benefit Plan for the Year
C) Compensated Absences
Current Service Cost 1,042 908
Net interest Expense 395 334 Assumptions March 31, 2021 March 31, 2020
Expected Return on Plan Assets (301) (260)
Net Cost recognized in the statement of Profit and Loss 1,136 982 Discount Rate 6.25% p.a. 6.45% p.a.
Remeasurement Losses/(Gains) Future salary increase 7.50% p.a. 7.50% p.a.
a) Effect of changes in financial assumptions 89 312 Attrition Rate
b) Effect of experience adjustments 37 174 - Senior management 13% p.a. 13% p.a.
- Middle management 13% p.a. 13% p.a.
c) Changes in demographic assumptions - (4)
- Others 13% p.a. 13% p.a.
d) Return on plan assets (excluding interest income) 7 24
Mortality Indian Assured Indian Assured
Net cost recognized in Other Comprehensive Income 133 506
Lives (2012-14) Lives (2012-14)
Assumptions
Ultimate Ultimate
Discount Rate 6.25% p.a. 6.45% p.a.
Future salary increase 7.50% p.a. 7.50% p.a.
Attrition Rate Notes:
- Senior management 13% p.a. 13% p.a. 1. The Group has not funded its Compensated Absences liability and the same continues to remain as unfunded as at March 31, 2021.
- Middle management 13% p.a. 13% p.a. 2. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
- Others 13% p.a. 13% p.a. 3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
Expected rate of return on Plan Assets 6.25% 7.50% p.a. term of the obligation.
-7.10%p.a.
Mortality Indian Indian
Assured Lives Assured Lives Note : 38 SEGMENT INFORMATION
(2012-14) Ultimate (2012-14) Ultimate
The Group is primarily engaged in the business of financing. All the activities of the Group revolve around the main business. Further, the
Maturity profile of Defined Benefit Obligations
Group does not have any separate geographic segments other than India
Weighted average duration (Based on discounted cash flows) 6 Years 6 Years
Expected Cash flows over the next (valued on undiscounted basis) During year ended March 31, 2021, for management purposes, the Group has been organised into the following operating segments
Within the next 12 months (next annual reporting period) 988 664 based on products and services, as follows
Between 2 and 5 years 3,559 3,008 - Vehicle Finance Loans - Loans to customers against purchase of new/used vehicles, tractors, construction equipments and loan to
Between 5 and 10 years 3,379 2,874 automobile dealers.
Beyond 10 Years 3,805 3,363
- Loan against property - Loans to customer against immovable property
Total Expected Cash flows 11,731 9,909
- Home Loans - loans given for acquisition of residential property
- Others -Loan against shares, and other unsecured loans & security broking and insurance agency business.
The Chief Operating Decision Maker (CODM) monitors the operating results of its business units separately for making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured
consistently with operating profits or losses in the financial statements. However, income taxes are managed on an entity as whole basis
and are not allocated to operating segments.
229 230
Note : 38 SEGMENT REPORTING (Contd.) Note : 38 SEGMENT REPORTING (Contd.) ` in lakhs
` in lakhs
Year ended March 31, 2021 Particulars Vehicle Loan against Home Loans Others Unallocable Total
Particulars Vehicle Loan against Home Loans Others Unallocable Total finance property
finance property As on March 31, 2021
Revenue from Operations Segment Assets 48,93,657 12,71,552 3,72,558 55,402 65,93,169
Interest Income 6,93,467 1,44,319 46,679 3,290 34,722 9,22,477 Unallocable Assets 8,71,247 8,71,247
Net gain on derecognition of financial instruments - - - - - - Total Assets 74,64,416
under amortised cost category Segment Liabilities 42,66,080 11,08,484 3,24,780 45,576 57,44,920
Fee Income 18,224 2,180 181 6,343 11 26,939 Unallocable Liabilities 7,59,516 7,59,516
- Net gain on Fair value change on - - - 487 487 Total Liabilities 65,04,436
financial instrument As on March 31, 2020
Sale of Services 7,096 540 401 - - 8,037 Segment Assets 42,15,030 10,53,555 2,44,892 31,357 55,44,834
Segment revenue from Operations (I) 7,18,787 1,47,039 47,261 9,633 35,220 9,57,940 Unallocable Assets 8,61,004 8,61,004
Other income (II) - - - 101 337 438 Total Assets 64,05,838
Total Segment Income - (I) + (II) 7,18,787 1,47,039 47,261 9,734 35,557 9,58,378 Segment Liabilities 36,76,854 9,19,037 2,13,624 25,266 48,34,781
Expenses Unallocable Liabilities 7,51,071 7,51,071
Finance costs 3,50,978 84,871 20,670 2,456 (1,421) 4,57,554 Total Liabilities 55,85,852
Impairment of Financial Instruments 1,12,792 14,560 5,479 (617) (3) 1,32,211
In computing the segment information, certain estimates and assumptions have been made by the management, which have been relied upon.
Employee benefits expense 61,328 7,692 4,971 4,943 250 79,184
As the asset are allocated to segment based on certain assumptions, hence additions to the Property, plant and equipment have not disclosed
Depreciation and amortisation expense 8,388 1,039 371 432 - 10,230 separately for each specific segment.
Other expenses 61,102 4,940 3,591 996 3,780 74,409 There are no revenue from transactions with a single external customer or counter party which amounted to 10% or more of the Group's total
Segment Expenses 5,94,588 1,13,102 35,082 8,210 2,606 7,53,588 revenue in the Current year and Previous year.
Segment Profit before taxation 1,24,199 33,937 12,179 1,524 32,951 2,04,790
Note : 39 RELATED PARTY DISCLOSURES
Tax expense 52,651
List of Related Parties
Share of loss from associate (53) (53)
• Holding Company: Cholamandalam Financial holdings limited (formerly known as TI Financial Holdings Limited)
• Entity having significant influence over holding Company: Ambadi Investments Limited
• Subsidiaries of entity which has significant influence over holding Company: Parry Enterprises Limited and Parry Agro Limited.
` in lakhs • Fellow Subsidiaries: Cholamandalam MS General Insurance Company Limited, Cholamandalam Health Insurance Limited
Year ended March 31, 2020 • Joint Venture of Holding Company: Cholamandalam MS Risk services Limited
Particulars Vehicle Loan against Home Loans Others Unallocable Total
• Associates : White Data Systems India Private Limited Vishvakarma Payments Private Limited (From 30th March 2021)
finance property
• Key Managerial Personnel:
- Interest Income 6,26,829 1,25,291 29,545 2,487 28,313 8,12,465 a. Mr. Arun Alagappan, Managing Director (upto February 14, 2021)
- Net gain on derecognition of financial 9,303 6,180 9,244 - - 24,727 b. Mr. D. Arulselvan, Chief Financial Officer
instruments under amortised cost category c. Ms. P. Sujatha, Company Secretary
- Fee Income 16,722 2,003 182 5,919 44 24,870 d. Mr. Ravindra Kumar Kundu, Executive Director (From January 23, 2020)
- Net gain on Fair value change on financial - - - 5 1,564 1,569 • Non-Executive Directors
instrument a) Ms. Bharati Rao (up to July 30, 2019)
- Sale of Services 6,560 731 278 1 - 7,570 b) Mr. Ashok Kumar Barat
Segment revenue from Operations (I) 6,59,414 1,34,205 39,249 8,412 29,921 8,71,201
c) Mr. M. M. Murugappan (upto November 11, 2020)
- Other income (II) - - - 36 26 62
Total Segment Income (I) + (II) 6,59,414 1,34,205 39,249 8,448 29,947 8,71,263 d) Mr. N. Ramesh Rajan
Expenses e) Mr. Rohan Verma
- Finance costs 3,47,457 79,477 16,772 1,475 13,989 4,59,170 f ) Ms. Bhama Krishnamurthy (From July 30, 2019)
- Impairment of Financial Instruments 77,581 9,591 2,162 (334) 735 89,735 g) Mr. Vellayan Subbiah (From November 11, 2020)
- Employee benefits expense 54,205 6,916 3,781 4,926 204 70,032 h) Mr. M. A. M. Arunachalam (From January 29, 2021)
- Depreciation and amortisation expense 9,068 992 271 420 374 11,125 i) Mr. Anand Kumar (From March16, 2021)
- Other expenses 68,481 5,610 3,068 1,375 3,845 82,379 j) Mr. Bharath Vasudevan (From March16, 2021)
Segment Expenses 5,56,792 1,02,586 26,054 7,862 19,147 7,12,441
Note:
Segment Profit before taxation 1,02,622 31,619 13,195 586 10,800 1,58,822
Related party relationships are as identified by the Management and relied upon by the Auditors
Tax expense 53,408
Share of loss from associate (42) (42)
231 232
Note : 39 RELATED PARTY DISCLOSURES (Contd.) Note : 39 RELATED PARTY DISCLOSURES (Contd.)
` in lakhs
` in lakhs Nature of Transaction Year ended Year ended
Particulars Year ended Year ended March 31,2021 March 31,2020
March 31,2021 March 31,2020 Note : 39 c) REMUNERATION TO KEY MANAGERIAL PERSONNEL
Note : 39 a) TRANSACTIONS DURING THE PERIOD Short- term employee benefits 794 656
Dividend Payments (Equity Shares) Post - employment pension (defined Contribution) 92 66
a) Cholamandalam Financial Holdings Limited 4,848 7,634 Dividend Payments 17 24
b) Ambadi Investments Limited 438 708 Share based payments 27 48
c) Parry Enterprises Limited 0* 0* Sale of Vehicle(s) 21 -
Amount received towards reimbursement of expenses * Represents amounts less than ₹ 1 lakh
a) Cholamandalam Financial Holdings Limited 104 100
Note : 40 CONTINGENT LIABILITIES AND COMMITMENTS
b) Cholamandalam MS General Insurance Company Limited 5 60
(a) Contested Claims not provided for: ` in lakhs
c) Parry Enterprises Limited 1 1
d) Cholamandalam MS Risk Services Limited 0* 0* Particulars As at As at
March 31,2021 March 31,2020
Services Received
Income tax and Interest on Tax issues where the Group has gone on appeal 22,465 23,104
a) Cholamandalam MS General Insurance Company Limited 201 164
Decided in the Group’s favour by Appellate Authorities and for which the 21,898 21,898
b) Parry Enterprises Limited 74 714
Department is on further appeal with respect to Income Tax
c) White Data Systems India Private Limited 29 32 Sales Tax issues pending before Appellate Authorities in respect of which the Group is on appeal. 2,573 2,660
Services rendered Service Tax & GST issues pending before Appellate Authorities in respect of which the Group is on appeal. 19,992 19,978
a) Cholamandalam MS General Insurance Company Limited 4,008 3,616 Disputed claims against the Group lodged by various parties under litigation (to the extent quantifiable) 10,801 8,526
b) Cholamandalam Financial Holdings Limited 0* 0* Order in respect of alleged violations of the Provisions of SEBI Act - 2
c) Ambadi Investments Limited 0* - Disputed claims pertaining to Service Tax payable on turnover charges and ineligible - 21
d) Key Managerial Personnel 0* - Service Tax Input Credit
Loans given i) The Group is of the opinion that the above demands are not sustainable and expects to succeed in its appeals / defence.
a) White Data Systems India Private Limited 340 340 ii) It is not practicable for the Group to estimate the timings of the cashflows, if any, in respect of the above pending resolution of the
Loans recovered respective proceedings.
a) White Data Systems India Private Limited 340 340 iii) The Group does not expect any reimbursement in respect of the above contingent liabilities.
Interest Expense iv) Future Cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various
forums/authorities.
a) Cholamandalam MS General Insurance Company Limited 1,603 1,696
Interest Income (b) Commitments ` in lakhs
a) White Data Systems India Private Limited 26 28 Particulars As at As at
Commission and Sitting fees to non-executive Directors 102 80 March 31,2021 March 31,2020
Capital commitments 3,678 2,834
Investment commitment to Faering Capital India Evolving Fund - -
Disbursements - Undrawn lines 1,24,190 84,535
` in lakhs
March 31,2021 March 31,2020 (c) The Code on Social Security, 2020 (‘ The Code’) relating to employee benefits during employment and post-employment benefits,
Note : 39 b) BALANCES OUTSTANDING AT THE PERIOD END received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which
Loans - Receivable the Code will come into effect has not been notified. The Ministry of Labour and Employment has also released draft rules thereunder
a) White Data Systems India Private Limited 340 340 on 13 November 2020 and has invited suggestions from stakeholders, which are under consideration by the Ministry. The Group will
Debt Securities - Payable evaluate the rules, assess the impact, if any, and account for the same once the rules are notified and become effective.
a) Cholamandalam MS General Insurance Company Limited (18,527 ) (19,070)
Other Receivable / (Payable) (d) Bank Guarantee: ` in lakhs
a) Cholamandalam Financial Holdings Limited 2 - Particulars As at As at
b) Cholamandalam MS General Insurance Company Limited 340 250 March 31,2021 March 31,2020
c) White Data Systems India Private Limited (6) (7) Outstanding bank guarantees given to stock exchanges/stock holding corporation 1,485 1,625
d) Parry Enterprises Limited 1 1 of India limited to meet margin requirements
e) Cholamandalam MS Risk services Limited - 0*
f ) Key Managerial personnel - 2
233 234
Note : 41 CHANGES IN PROVISIONS Note : 42 ESOP DISCLOSURE (Contd.)
` in lakhs
Particulars As at Additional Utilisation/ As at
March 31,2020 Provision Reversal March 31,2021 Options Options Options
Options
outstanding During the Year vested unvested
outstanding
Provision for Contingencies and Service Tax claims 3,838 508 - 4,346 but not
exercised
Provision for Expected credit loss allowance towards Undrawn commitments 131 89 116 104 Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
` in lakhs Grant 31.03.2020 in number Granted Forfeited Exercised 31.03.2021 31.03.2021 31.03.2021 Price Average
Particulars As at Additional Utilisation/ As at
March 31,2019 Provision Reversal March 31,2020
Provision for Contingencies and Service Tax claims 3,837 1 - 3,838
GT25 25 Jan 17 21,18,600 - - 1,92,140 2,61,770 16,64,690 16,64,690 - 202 -
Provision for Expected credit loss allowance towards Undrawn commitments 51 80 - 131 JAN 2017
Undrawn loan commitments are commitments under which the Group is required to provide a loan under pre-sanctioned terms to the GT30 30 Jan 18 2,38,485 - - - 34,400 2,04,085 2,04,085 - 262 -
customer. JAN 2018
GT30 30 Jan 18 89,800 - - - 2,500 87,300 60,360 26,940 262 0.84 years
The undrawn commitments provided by the Group are predominantly in the nature of limits provided for Automobile dealers based on the
JAN2018A
monthly loan conversions and partly disbursed loans for immovable properties. These undrawn limits are converted within a short period
GT23 23 Apr 18 44,900 - - - 17,960 26,940 - 26,940 312 0.56 years
of time and do not generally remain undisbursed / undrawn beyond one year from the reporting date. The undrawn commitments amount
APR 2018
outstanding as at March 31, 2021 is ₹ 1,24,190 lakhs (₹84,535 lakhs as at March 31, 2020).
GT26 26 Jul 18 2,74,860 - - 1,31,500 3,000 1,40,360 86,600 53,760 299 0.32 years
The Group creates expected credit loss provision on the undrawn commitments outstanding as at the end of the reporting period and the JUL 2018
related expected credit loss on these commitments as at March 31, 2021 is ₹ 104 lakhs (₹ 131 lakhs as at March 31, 2020). GT30 30 Oct 18 3,67,300 - - 44,900 25,000 2,97,400 1,03,960 1,93,440 254 1.08 years
OCT 2018
Note : 42 ESOP DISCLOSURE GT19 19 Mar 19 5,88,460 - - - 17,280 5,71,180 2,75,740 2,95,440 278 1.47 years
ESOP 2007 MAR 2019
GT30 30 Jul 19 31,632 - - 4,860 - 26,772 13,386 13,386 248 0.33 years
The Board at its meeting held on June 22, 2007, approved an issue of Stock Options up to a maximum of 5% of the issued Equity Capital of JUL 2019
the Company (before Rights Issue) aggregating to 1,904,162 Equity Shares (prior to share split) in a manner provided in the SEBI (Employee GT05 5 Nov 19 2,75,600 - - - 25,560 2,50,040 29,560 2,20,480 316 1.73 years
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. NOV2019
ESOP 2016 GT23 23 Jan 20 53,000 - - - 10,600 42,400 - 42,400 318 1.94 years
JAN2020
The Board at its meeting held on October 7, 2016, approved to create, and grant from time to time, in one or more tranches, not exceeding
GT03 3 Jun 20 - - 2,11,900 - - 2,11,900 - 2,11,900 158 1.88 years
31,25,102 Employee Stock Options to or for the benefit of such person(s) who are in permanent employment of the company including
JUNE2020
some of subsidiaries, managing director and whole time director, (other than promoter/promoter group of the company, independent
GT03 3 Jun 20 - - 1,905 - - 1,905 - 1,905 158 0.18 years
directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the company), as may be decided by
JUNE2020A
the board, exercisable into not more than 31,25,102 equity shares of face value of `10/- each fully paid-up, on such terms and in such manner
as the board may decide in accordance with the provisions of the applicable laws and the provisions of ESOP 2016. Total 40,82,637 - 2,13,805 3,73,400 3,98,070 35,24,972 24,38,381 10,86,591
In this regard, the Group has recognised expense amounting to ` 564 lakhs for employees services received during the year, shown under *Equity shares of face value of ` 10/- have been split into face value of ` 2 per share on June 18, 2019, pursuant to resolution passed
Employee Benefit Expenses (Refer Note 31). through postal ballot on June 3, 2019
The movement in Stock Options during the current period are given below:
The movement in Stock Options during the previous year are given below:
Employee Stock Option Plan 2007 Employee Stock Option Plan 2007
Options Options Options Options
outstanding During the Year outstandingvested unvested Options Options Options
Options
but not outstanding During the Year 2019-20 vested unvested
outstanding
exercised but not
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted exercised
Grant 31.03.2020 in number Granted Forfeited Exercised 31.03.2021 31.03.2021 31.03.2021 Price Average Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted
of options / Expired and Remaining Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average
on account allotted Contractual of options / Expired and Remaining
of share split* Life on account allotted Contractual
GT25 25 Apr 08 - - - - - - - - - - of share split* Life
Apr 2008 GT25 25 Apr 08 - - - - - - - - 38 -
Apr 2008
GT27 27 Jan 11 23,120 - - - 23,120 - - - 38 -
GT27 27 Jan 11 9,163 36,652 - - 22,695 23,120 23,120 - 38 -
JAN 2011A JAN 2011A
GT27 27 Jan 11 - - - - - - - - - GT27 27 Jan 11 5,976 23,904 - - 29,880 - - - 38 -
JAN 2011B JAN 2011B
GT30 30 Apr 11 7,948 31,792 - - 14,500 25,240 25,240 - 33 -
GT30 30 Apr 11 25,240 - - - 15,000 10,240 10,240 - 33 -
APR 2011
APR 2011 GT27 27 Oct 11 7,936 31,744 - - 9,920 29,760 29,760 - 31 -
GT27 27 Oct 11 29,760 - - - 21,180 8,580 8,580 - 31 - OCT 2011
OCT 2011 Total 31,023 1,24,092 - - 76,995 78,120 78,120 -
Total 78,120 - - - 59,300 18,820 18,820 -
235 236
Note : 42 ESOP DISCLOSURE (Contd.) Note : 42 ESOP DISCLOSURE (Contd.)
Employee Stock Option Plan 2016 The shareholders of the Company, at the 34th Annual General Meeting held on July 30, 2012, authorised extension of exercise period
from 3 years from the date of vesting to 6 years from the date of vesting. Accordingly, the Company has measured the fair value of the
Options Options
Options Options
outstanding During the Year vested
outstanding unvested options using the Black Scholes model immediately before and after the date of modification to arrive at the incremental fair value
2019-20 but not arising due to the extension of the exercise period. The incremental fair value so calculated is recognised from the modification date
exercised
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted over the vesting period in addition to the amount based on the grant date fair value of the stock options.
The incremental (benefit)/cost due to modification of the exercise period from 3 years to 6 years from the date of vesting for the year
on account allotted Contractual ended March 31, 2021 is ₹ Nil (March 31, 2020- ₹ Nil)
of share split* Life The fair value of the options has been calculated using the Black Scholes model on the date of modification.
GT2525 25 Jan 17 4,72,842 18,91,368 - 17,920 2,27,690 21,18,600 13,76,010 7,42,590 202 0.82 years
JAN2017 The assumptions considered for the calculation of the fair value (on the date of modification) are as follows:
GT3030 30 Jan 18 49,040 1,96,160 - - 6,715 2,38,485 1,46,535 91,950 262 0.84 years
JAN2018 Variables Post Modification
GT30 30 Jan 18 17,960 71,840 - - - 89,800 35,920 53,880 262 1.34 years
Risk Free Interest Rate 7.92%-8.12%
JAN2018A
GT23 23 Apr 18 8,980 35,920 - - - 44,900 8,980 35,920 312 1.19 years Expected Life 0.12 years- 6.25 years
APR2018
GT26 26 Jul 18 54,972 2,19,888 - - - 2,74,860 68,715 2,06,145 299 0.82 years Expected Volatility 28.28%-63.00%
JUL2018 Dividend Yield 1.18%
GT30 30 Oct 18 73,460 2,93,840 - - - 3,67,300 73,460 2,93,840 254 1.71 years
OCT2018 Price of the underlying share in market at the time of the option grant.(₹) 212.05
GT19 19 Mar 19 1,17,692 4,70,768 - - - 5,88,460 1,46,060 4,42,400 278 2.09 years
MAR2019 ESOP 2016
GT30 30 Jul 19 - - 31,632 - - 31,632 - 31,632 248 0.83 years Variables
JUL2019
GT05 5 Nov 19 - - 2,75,600 - - 2,75,600 - 2,75,600 316 2.30 years Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value
NOV2019 Interest Rate Volatility underlying of the Option
GT23 23 Jan 20 - - 53,000 - - 53,000 - 53,000 317 2.52 years Share in the (₹)
JAN2020 Market at the time
Total 7,94,946 31,79,784 3,60,232 17,920 2,34,405 40,82,637 18,55,680 22,26,957 of the Option
*Equity shares of face value of ` 10/- have been split into face value of ` 2 per share on June 18, 2019, pursuant to resolution passed Grant (₹)
through postal ballot on June 3, 2019
25-Jan-17 6.36% - 6.67% 3.5 -6.51 years 33.39% -34.47% 0.54% 1,010.00 401.29
The following tables list the inputs to the Black Scholes model used for the plans for the year ended March 31, 2021 30-Jan-18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 496.82
ESOP 2007 30-Jan-18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 531.84
Variables 23-Apr-18 7.45%-7.81% 3.51 -6.51 years 30.33%-32.38% 0.42% 1,562.35 646.08
Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value 26-Jul-18 7.71%-7.92% 3.51 -5.51 years 30.56%-31.83% 0.43% 1,497.30 586.32
Interest Rate Volatility underlying of the Option 30-Oct-18 7.61%-7.85% 3.51 -6.51 years 32.34%-32.70% 0.51% 1,268.50 531.36
Share in the (₹) 19-Mar-19 6.91% - 7.25% 3.51 -6.51 years 32.19% -32.59% 0.47% 1,390.05 564.13
Market at the time
30-Jul-19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 248.20 83.66*
of the Option
05-Nov-19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 316.00 112.09*
Grant (₹)
23-Jan-20 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 317.00 109.51*
30-Jul-07 7.10% - 7.56% 3-6 years 40.64% -43.16% 5.65% 193.40 61.42
3-Jun-20 5% 3.50 years 47.50% 1.33% 157.90 58.27*
24-Oct-07 7.87% -7.98% 3-6 years 41.24% -43.84% 5.65% 149.90 44.25
* Fair value option of equity shares issued under this grant is post share split with a face value of ` 2/- each
25-Jan-08 6.14% -7.10% 3-6 years 44.58% -47.63% 5.65% 262.20 78.15
25-Apr-08 7.79% - 8.00% 2.5-5.5 years 45.78% - 53.39% 3.97% 191.80 76.74 Note 43 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
` in lakhs
30-Jul-08 9.14% - 9.27% 2.5-5.5 years 46.52% - 53.14% 3.97% 105.00 39.22
24-Oct-08 7.54% - 7.68% 2.5-5.5 years 48.2% - 55.48% 3.97% 37.70 14.01 Difference
27-Jan-11 Debt Securities 7,32,683 5,00,898 - 2,186 12,35,767
Borrowings other than debt securities 43,27,308 4,04,659 (13,268) (473) 47,18,226
- Tranche I 8% 4 years 59.50% 10% 187.60 94.82
Subordinated liabilities 4,40,552 (20,150) - (1,396) 4,19,006
- Tranche II 8% 3.4 years 61.63% 10% 187.60 90.62
Total 55,00,543 8,85,407 (13,268) 317 63,72,999
30-Apr-11 8% 4 years 59.40% 25% 162.55 73.07
28-Jul-11 8% 4 years 58.64% 25% 175.35 79.17
27-Oct-11 8% 4 years 57.52% 25% 154.55 67.26
237 238
Note : 43 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES (Contd.) Note : 44 MATURITY ANALYSIS
` in lakhs
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled. ` in lakhs
Difference Maturity
Particulars Amount Within After
Debt Securities 14,18,431 (6,68,840) - (16,908) 7,32,683 12 months 12 months
Borrowings other than debt securities 32,12,375 10,98,059 20,341 (3,467) 43,27,308
Subordinated liabilities 4,25,868 15,500 - (816) 4,40,552
Financial Assets
Total 50,56,674 4,44,719 20,341 (21,191) 55,00,543
Cash and Cash Equivalents 3,49,514 3,49,514 -
(i) Others column represents the effect of interest accrued but not paid on borrowing, amortisation of processing fees etc
Bank balances Other than Cash and 3,50,560 3,15,590 34,970
(ii) Liabilities represents of Debt securities, Borrowings (other than debt securities) and Subordinated Liabilities Cash Equivalents
Derivative financial instruments 11,420 1,711 9,709
Note : 44 MATURITY ANALYSIS
Receivables - -
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled.
i) Trade Receivables 1,503 1,503 -
` in lakhs
Maturity ii) Other Receivables 5,052 5,052 -
Particulars Amount Within After Loans 55,39,573 12,27,903 43,11,670
12 months 12 months
Investments
i) Associate 2,477 - 2,477
Financial Assets
Cash and Cash Equivalents 1,59,323 1,59,323 - ii) Others 793 - 793
Bank balances Other than Cash and Cash Equivalents 3,68,654 3,41,140 27,514 Other Financial Assets 43,913 15,470 28,443
Derivative financial instruments 4,587 - 4,587 Total Financial Assets 63,04,805 19,16,743 43,88,062
Receivables
Non- Financial Assets
i) Trade Receivables 5,660 5,660 -
Current tax assets (Net) 15,947 - 15,947
ii) Other Receivables 4,211 4,211 -
Loans 65,83,934 19,71,863 46,12,071 Deferred tax assets (Net) 52,747 - 52,747
Investments - - Investment Property 14 - 14
i) Associate 2,424 - 2,424 Property, Plant and Equipment 26,236 - 26,236
ii) Others 1,55,925 9,714 1,46,211
Intangible assets under development 1,060 - 1,060
Other Financial Assets 59,445 30,006 29,439
Total Financial Assets 73,44,163 25,21,917 48,22,246 Other Intangible assets 2,067 - 2,067
Non- Financial Assets Other Non-Financial Assets 2,962 78 2,884
Current tax assets (Net) 14,767 - 14,767 Total Non- Financial Assets 1,01,033 78 1,00,955
Deferred tax assets (Net) 76,897 - 76,897 Financial Liabilities
Investment Property 13 - 13
Derivative financial instruments - - -
Property, Plant and Equipment 20,826 - 20,826
Intangible assets under development 991 - 991 Payables
Other Intangible assets 1,920 - 1,920 i) Trade Payables 22,047 22,047 -
Other Non-Financial Assets 4,839 1,894 2,945 ii) Other Payables 9,949 9,949 -
Total Non- Financial Assets 1,20,253 1,894 1,18,359 Debt Securities 7,32,683 4,10,141 3,22,542
Derivative financial instruments 12,742 - 12,742
Payables Subordinated Liabilities 4,40,552 52,023 3,88,529
i) Trade Payables 27,930 27,930 - Other Financial Liabilities 39,485 29,374 10,111
ii) Other Payables 20,531 20,531 - Total Financial Liabilities 55,72,024 17,13,251 38,58,773
Debt Securities 12,35,767 6,04,785 6,30,982 Non-Financial Liabilities
Provisions 9,151 9,151 -
Subordinated Liabilities 4,19,006 1,01,959 3,17,047
Other Financial Liabilities 50,268 40,260 10,008 Other Non-Financial Liabilities 4,677 2,699 1,978
Total Financial Liabilities 64,84,470 24,87,272 39,97,198 Total Non-Financial Liabilities 13,828 11,850 1,978
Non-Financial Liabilities
Current tax liabilities 4,225 4,225 -
Provisions 11,045 11,044 1
Other Non-Financial Liabilities 4,696 3,422 1,274
239 240
Note : 45 CAPITAL MANAGEMENT Note : 45 CAPITAL MANAGEMENT (Contd.)
The Group maintains an actively managed capital base to cover risks inherent in the business, meeting the capital adequacy requirements physical verifications and field visits. The Group has a robust post sanction monitoring process to identify credit portfolio trends and
of Reserve Bank of India (RBI), maintain strong credit rating and healthy capital ratios in order to support business and maximise shareholder early warning signals. This enables it to implement necessary changes to the credit policy, whenever the need arises. Also, being in asset
value. The adequacy of the Group’s capital is monitored by the Board using, among other measures, the regulations issued by RBI. financing business, most of the Group’s lending is covered by adequate collaterals from the borrowers. The Group has a robust online
The Group manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk application underwriting model to assess the credit worthiness of the borrower for underwriting decisions for its vehicle finance, Loan
characteristics of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment against property and home loan business. The Group also has a well-developed model for the vehicle finance portfolio, to help business
to shareholders, return capital to shareholders or issue capital securities. teams plan volume with adequate pricing of risk for different segments of the portfolio
45.1 Risk Management Credit risk arises when a borrower is unable to meet financial obligations to the lender. This could be either because of wrong assessment
of the borrower’s payment capabilities or due to uncertainties in future. The effective management of credit risk requires the establishment
The Group is committed to create value for its stakeholders through sustainable business growth and with that intent has put in place
of appropriate credit risk policies and processes.
a robust risk management framework to promote a proactive approach in reporting, evaluating and resolving risks associated with the
business. Given the nature of the business the Group is engaged in, the risk framework recognizes that there is uncertainty in creating and 45.3 Market Risk
sustaining such value as well as in identifying opportunities. Risk management is therefore made an integral part of the Group’s effective Market Risk is the possibility of loss arising from changes in the value of a financial Market Risk is the possibility of loss arising from
management practice. changes in the value of a financial instrument as a result of changes in market variables such as interest rates, exchange rates and other
Risk Management Framework: asset prices. The Group’s exposure to market risk is a function of asset liability management and interest rate sensitivity assessment. The
Group is exposed to interest rate risk and liquidity risk, if the same is not managed properly. The Group continuously monitors these risks
Group’s risk management framework is based on
and manages them through appropriate risk limits. The Asset Liability Management Committee (ALCO) reviews market-related trends and
(a) Clear understanding and identification of various risks risks and adopts various strategies related to assets and liabilities, in line with the Group’s risk management framework. ALCO activities
(b) Disciplined risk assessment by evaluating the probability and impact of each risk are in turn monitored and reviewed by a board sub-committee. In addition, the Group has put in an Asset Liability Management (ALM)
support group which meets frequently to review the liquidity position of the Group.
(c) Measurement and monitoring of risks by establishing key risk indicators with thresholds for all critical risks and
45.4 Concentration of Risk/Exposure
(d) Adequate review mechanism to monitor and control risks.
Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such
Group’s risk management division works as a value center by constantly engaging with the business providing reports based on key
counterparties are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet
analysis and insights. The key risks faced by the Group are credit risk, liquidity risk, interest rate risk, operational risk, reputational and
contractual obligations is uniformly affected by changes in economic, political or other conditions. The Group is in retail lending business
regulatory risk, which are broadly classified as credit risk, market risk and operational risk. The Group has a well-established risk reporting
on pan India basis targeting primarily customers who either do not get credit or sufficient credit from the traditional banking sector. Vehicle
and monitoring framework. The in-house developed risk monitoring tool, Chola Composite Risk Index, measures the movement of top
Finance (consisting of new and used Commercial Vehicles, Passenger Vehicles, Tractors, Construction Equipment and Trade advance to
critical risks. This provides the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified
Automobile dealers) is lending against security (other than for trade advance) of Vehicle/ Tractor / Equipment and contributes to 72% of
key risk indicators and are aligned to the overall Group’s risk appetite framework approved by the board. The Group’s risk management
the loan book of the Group as of March 31, 2021 (73% as of March 31, 2020). Hypothecation endorsement is made in favour of the Group
initiatives and risk MIS are reviewed monthly by the top management. This process enables the Group to reassess the top critical risks in a
in the Registration Certificate in respect of all registerable collateral. Portfolio is reasonably well diversified across South, North, East and
changing environment that need to be focused on.
Western parts of the country. Similarly, sub segments within Vehicle Finance like Heavy Commercial Vehicles, Light Commercial Vehicles,
Risk Governance structure: Car and Muti Utility Vehicles, three wheeler and Small Commercial Vehicles, Refinance against existing vehicles, older vehicles (first time
The Group’s overall risk governance is handled by three lines of defense to ensure the effectiveness of an organization’s risk management buyers), Tractors and Construction Equipment have portfolio share between 10% and 6% leading to well diversified sub product mix.
framework including monitoring and assurance functions within the organization. Loan against property is mortgage loan against security of existing immovable property (primarily self-occupied residential property)
a) Under the first line of defence, risk champions are identified in each functional and business unit to take ownership, responsibility and to self-employed non-professional category of borrowers and contributes to 22% of the lending book of the Group as of March 31, 2021
accountability for directly assessing, controlling and mitigating risks. (21% as of March 31, 2020). Portfolio is concentrated in North (38%) with small presence in East (4%). The remaining is evenly distributed
between South and Western parts of the country. South has 32% and West contributes 25%.
b) The risk management team under the guidance of the risk management committee acts as the second line of defense. The risk
management division has established a comprehensive risk management framework across the business and provides appropriate The Concentration of risk is managed by Group for each product by its region and its sub-segments. Group did not overly depend on few
reports on risk exposures and analysis in its pursuit of creating awareness across the Group about risk management. The RMC of the regions or sub-segments as of March 31, 2021.
board meets minimum of four times a year and reviews the risk management policy, implementation of risk management framework, 45.5 Operational Risk
monitoring of critical risks, and review of various other initiatives with a structured annual plan.
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. The
c) Third line of defense constitutes internal auditors, internal external auditors and statutory auditors provide assurance to the audit operational risks of the Group are managed through comprehensive internal control systems and procedures and key back up processes.
committee and senior management on the effectiveness of internal governance and risk processes. In order to further strengthen the control framework and effectiveness, the Group has established risk control self-assessment at branches
45.2 Credit Risk to identify process lapses by way of exception reporting. This enables the management to evaluate key areas of operational risks and
the process to adequately mitigate them on an ongoing basis. The Group also undertakes risk based audits on a regular basis across all
Credit risk arises when a borrower is unable to meet his financial obligations to the lender. This could be either because of wrong
business units / functions. While examining the effectiveness of control framework through self-assessment, the risk-based audit would
assessment of the borrower’s payment capabilities or due to uncertainties in his future earning potential. The effective management of
assure effective implementation of self-certification and internal financial controls adherence, thereby, reducing enterprise exposure.
credit risk requires the establishment of appropriate credit risk policies and processes. The Group has comprehensive and well-defined
credit policies across various businesses, products and segments, which encompass credit approval process for all businesses along The Group has put in place a robust Disaster Recovery (DR) plan, which is periodically tested. Business Continuity Plan (BCP) is further
with guidelines for mitigating the risks associated with them. The appraisal process includes detailed risk assessment of the borrowers, put in place to ensure seamless continuity of operations including services to customers, when confronted with adverse events such as
241 242
natural disasters, technological failures, human errors, terrorism, etc. Periodic testing is carried out to address gaps in the framework, if 45.8 Disclosure of Effects of Hedge Accounting
any. DR and BCP audits are conducted on a periodical basis to provide assurance regarding the effectiveness of the Group’s readiness. The Cash flow Hedge
Group is continuously engaged in creating risk awareness and culture across the organisation through training on risk management tools As at March 31, 2021
and communication through risk e-newsletters. Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item
Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance
45.6 Liquidity Risk Risk on Cash Instruments Instruments Hedging used as a basis for sheet
Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge
Liquidity risk is defined as the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities that (₹ in lakhs) effectiveness (₹ in lakhs)
are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Group might be unable to Asset Liability Asset Liability
meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress Cross Currency 6 1 1,57,501 65,152 March 18, 2022 (1,720) (11,025) Borrowings
circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Group on acceptable Interest rate swap to June 03, 2024
terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of availing funding in line with Interest rate swaps 1 0 1,42,238 - June 20, 2028 (1,953) - Borrowings
the tenor and repayment pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Group has developed Forward contracts 0 26 - 7,922 March 21, 2022 to 11,828 5,041 Borrowings
internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and June 03, 2024
the availability of unencumbered receivables which could be used to secure funding by way of assignment if required. The Group also has
lines of credit that it can access to meet liquidity needs.
Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
Refer Note No 48 for the summary of maturity profile of undiscounted cash flows of the Group’s financial assets and financial liabilities as Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit
at reporting period recognised in Other and loss Reserve to Profit or Loss and Loss because of
Comprehensive Income the Reclassification
45.7 Foreign Currency Risk (₹ in Lakhs)
Foreign Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign
currency risk for the Group arise majorly on account of foreign currency borrowings. The Group manages this foreign currency risk by
entering in to cross currency swaps and forward contract. When a derivative is entered in to for the purpose of being as hedge, the Group As at March 31, 2020
negotiates the terms of those derivatives to match with the terms of the hedge exposure. The Group’s policy is to fully hedge its foreign Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item
currency borrowings at the time of drawdown and remain so till repayment. Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance
Risk on Cash Instruments Instruments Hedging used as a basis for sheet
The Group holds derivative financial instruments such as Cross currency interest rate swap to mitigate risk of changes in exchange rate in Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge
foreign currency and floating interest rate. (₹ in lakhs) effectiveness (₹ in lakhs)
Asset Liability Asset Liability
The Counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for
Cross Currency 9 0 2,22,953 - September 25, 2020 11,420 (21,038) Borrowings
similar assets and liabilities in active markets or inputs that are directly or indirectly observable in market place.
Interest rate swap to June 03, 2024

Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit
recognised in Other and loss Reserve to Profit or Loss and Loss because of
Comprehensive Income the Reclassification
(₹ in Lakhs)
45.9 Collateral and Other Credit Enhancements
Although collateral can be an important mitigation of credit risk, it is the Group’s practice to lend on the basis of the customer’s ability
to meet the obligations out of cash flow resources other than placing primary reliance on collateral and other credit risk enhancements.
The Group obtains first and exclusive charge on all collateral that it obtains for the loans given. Vehicle Finance and Home Equity secured
by collateral at the time of origination. In case of Vehicle loans, Group values the vehicle either through proforma invoice (for new vehicles)
or using registered valuer for used vehicles. In case of Home equity loans, the value of the property at the time of origination will be
arrived by obtaining two valuation reports from Group’s empanelled valuers.
Hypothecation endorsement is obtained in favour of the Group in the Registration Certificate of the Vehicle/ Tractor / Equipment funded
under the vehicle finance category.
Immovable Property is the collateral for Loan against Property loans. Security Interest in favour of the Group is created by Mortgage
through deposit of title deed which is registered wherever required by law.
243 244
Note : 45 CAPITAL MANAGEMENT (Contd.) NOTE : 47
In respect of other loans, Home loans follow the same process as Loan against property and pledge is created in favour for the Group for Note 47.1 FAIR VALUE OF FINANCIAL INSTRUMENTS
loan against securities. The Group does not obtain any other form of credit enhancement other than the above. 99% of the Group’s term
loan are secured by way of tangible Collateral. Any surplus remaining after settlement of outstanding debt by way of sale of collateral is Set out below is a comparison, by class, of the carrying amounts and fair values of the Group ’s financial instruments that are not carried
returned to the customer / borrower. at fair value in the financial statements. This table does not include the fair values of non–financial assets and non–financial liabilities.
Note 46 : INVESTMENT IN AN ASSOCIATE ` in lakhs

The Group had recognised the value of investment in associate - White Data Systems India Private Limited (WDSI) at fair value on the date of loss Particulars March 31,2021 March 31,2020
Carrying Fair Carrying Fair
of control and the same is carried at cost as at reporting date.
` in lakhs Value Value Value Value
Particulars As at As at Financial Assets
March 31,2021 March 31,2020 Cash and Cash Equivalents 1,59,323 1,59,323 3,49,514 3,49,513
Value of Investment in Subsidiary on the date of loss of control 2,554 2,554
Bank balances Other than Cash and Cash Equivalents 3,68,654 3,68,654 3,50,560 3,50,559
Less: Cumulative Share of Loss of from Associate (130) (77)
Receivables
Closing value of Investment 2,424 2,477
i) Trade Receivables 5,660 5,660 3,019 3,019
The Group has a 30.87% interest in White Data Systems India Private Limited, which is in the business of providing freight data solutions
encompassing technology, certification and finance offering in India. The WDSI has dedicated logistics platform “i-loads”, seamlessly ii) Other Receivables 4,211 4,211 3,536 3,536
connects load providers, logistics agents, brokers and transporters through its disruptive technology. It is accounted for using the equity Loans 65,83,934 68,38,189 55,39,573 54,69,635
method in the consolidated financial statements. The following table illustrates the summarised financial information of the Group’s
Investments other than associates 1,55,925 1,48,239 793 790
investment in White Data Systems India Private Limited:
` in lakhs Other Financial Assets 59,445 59,445 43,913 43,913
Particulars March 31,2021 March 31,2020 Total Financial Assets 73,37,152 75,83,721 62,90,908 62,20,965
Current assets 2,483 6,458 Financial Liabilities
Non-current assets 1,713 1,027 Payables
Current liabilities (700) (3,709)
i) Trade Payables 27,930 27,930 22,047 22,047
Non-current liabilities (47) (64)
ii) Other Payables 20,531 20,531 9,949 9,949
Equity 3,449 3,712
Proportion of the Group’s ownership 30.87% 30.87% Debt Securities 12,35,767 12,36,407 7,32,683 7,32,658
Group's share in the Equity of the associate 1,065 1,146 Borrowings(Other than Debt Securities) 47,18,226 47,15,550 43,27,308 43,23,357
Subordinated Liabilities 4,19,006 4,20,811 4,40,552 4,40,595
` in lakhs
Particulars Year ended Other Financial Liabilities 50,268 50,268 39,485 39,485
March 31, 2021
Total Financial Liabilities 64,71,728 64,71,497 55,72,024 55,68,091
Revenue from contracts with customers 411
Other Income 166
Depreciation & amortization 104 The Management assessed that cash and cash equivalents, bank balance other than Cash and cash equivalents, receivable, other financial
Finance cost 29 assets, payables and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments.
Employee benefit 188
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
Other expense 475
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
Profit before tax (219)
Income tax expense (11) estimate the fair values of financial assets or liabilities
Profit for the year (continuing operations) (230) i) Derivatives are fair valued using market observable rates and publishing prices
Other comprehensive loss that may be reclassified to profit or loss in subsequent periods, net of tax - ii) The fair value of loans have estimated by discounting expected future cash flows using discount rate equal to the rate near to the
Other comprehensive income that will not be reclassified to profit or loss in the subsequent periods, net of tax - reporting date of the comparable product.
Total comprehensive income for the year (continuing operations) (230)
iii) The fair value of debt securities, borrowings other than debt securities and subordinated liabilities have estimated by discounting
Group’s share of loss for the year (71)
Adjustment relating to prior periods. 18 expected future cash flows discounting rate near to report date based on comparable rate / market observable data.
Group’s share of loss considered in the consolidated statement of Profit and loss for the year ended March 31, 2021 (53) iv) The fair values of quoted equity investments are derived from quoted market prices in active markets.
v) The fair value of investment in Government securities are derived from rate near to the reporting date of the comparable product.
The associate has no contingent liabilities or capital commitments as at March 31, 2021 and March 31, 2020.
b) Vishvakarma Payments Private Limited (VPPL) is a consortium of 7 entities formed for the purpose of applying to the Reserve Bank of India (RBI)
for an NUE (New Umbrella Entity) license within the framework of RBI circular. The licensed NUE is to focus on retail payment systems by developing
interoperable infrastructure which will cater to banks and non-banks and enable innovative use-cases to solve the diversity, depth and width of
consumers and small businesses in India. VPPL is incorporated with an equity capital of ` 1 lakh and its networth as March 31, 2021 is ` 1 lakh. It can
commence operations only on receipt of license from RBI. The Group holds 21% stake in VPPL.
245 246
Note : 47 (Contd.) Note : 47 (Contd.)
Note : 47.2 Fair Value Hierarchy Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2020 ` in lakhs
The following table provides the fair value measurement hierarchy of the Group's assets and liabilities Particulars Fair value measurement using
Carrying Quoted price in Significant Significant
Value active markets observable unobservable
` in lakhs (Level 1) inputs inputs
(Level 2) (Level 3)
Particulars Fair value measurement using
Liabilities measured at Fair value
Carrying Quoted price in Significant Significant
Derivative financial instruments - - - -
(Level 1) inputs inputs Liabilities for which fair values are disclosed
(Level 2) (Level 3) Debt Securities 7,32,683 - 7,32,658 -
Assets measured at Fair value Borrowings(Other than Debt Securities) 43,27,308 - 43,23,357 -
FVTOCI Equity Instruments 1,046 1,046 - Subordinated Liabilities 4,40,552 - 4,40,595 -
FVTPL Equity Instruments 288 - - 288 There have been no transfers between different levels during the period.
Derivative financial instruments 4,587 - 4,587 -
Note 47.3 Summary of Financial assets and liabilities which are recognised at amortised cost ` in lakhs
Assets for which fair values are disclosed
Loans 65,83,934 - 68,38,189 - March 31,2021 March 31, 2020
Investments in Government Securities 1,55,925 - 1,46,905 - Financial Assets
Investment Properties * 13 - - 304 Cash and Cash Equivalents 1,59,323 3,49,514
There have been no transfers between different levels during the period. Bank balances other than Cash and Cash Equivalents 3,68,654 3,50,560
* Fair value of investment property is calculated based on valuation given by external independent valuer. Loans 65,82,784 55,39,573
Investments other than associates 1,55,925 793
Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2021 ` in lakhs Other Financial Assets 59,445 43,913
Particulars Fair value measurement using Financial Liabilities
Carrying Quoted price in Significant Significant Debt Securities 12,35,767 7,32,683
Borrowings(Other than Debt Securities) 47,18,226 7,32,683
(Level 1) inputs inputs
(Level 2) (Level 3) Subordinated Liabilities 4,19,006 4,40,552
Liabilities measured at Fair value Other Financial liabilities 50,268 39,485
Derivative financial instruments 12,742 - 12,742 - Note : 47.4 Refer Note 15 for sensitivity analysis for investment property, whose fair value is disclosed under the level 3 category.
Liabilities for which fair values are disclosed
Debt Securities 12,35,767 - 12,36,407 - Note : 48 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES
Borrowings (Other than Debt Securities) 47,18,226 - 47,15,550 - As at March 31, 2021 ` in lakhs
Subordinated Liabilities 4,19,006 - 4,20,811 - Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
1 month months months months years years 5 years
There have been no transfers between different levels during the period. Financial Assets
Cash and Cash Equivalents 1,59,322 - - - - - - 1,59,322
Bank balances other than 96,373 1,02,355 1,36,807 4,033 13,043 10,571 11,444 3,74,626
` in lakhs Cash and Cash Equivalents
Particulars Fair value measurement using Derivative financial instruments - - - - - - 4,587 4,587
Carrying Quoted price in Significant Significant Receivables - - - - - - -
Value active markets observable unobservable i) Trade Receivables 5,660 - - - - - - 5,660
(Level 1) inputs inputs ii) Other Receivables 4,211 - - - - - - 4,211
(Level 2) (Level 3)
Loans 5,02,874 5,38,796 7,04,685 13,47,385 37,59,707 13,26,678 19,71,659 1,01,51,784
Assets measured at Fair value Investments
FVTOCI Equity Instruments 1,248 818 430 - i) Associate - - - - - - 2,424 2,424
Derivative financial instruments 40 40 - ii) Others - 1,135 3,722 4,857 19,716 19,428 1,07,068 1,55,926
Derivative financial instruments 11,420 - 11,420 - Other Financial Assets 4,605 12,851 4,368 7,535 18,303 10,630 10,810 69,102
Assets for which fair values are disclosed Total Undiscounted 7,73,045 6,55,137 8,49,582 13,63,810 38,10,769 13,67,307 21,07,992 1,09,27,642
Loans 55,39,573 - 54,69,635 - financial assets
Investment Properties * 14 - - 299 Financial Liabilities
There have been no transfers between different levels during the period. Derivative financial instruments - - - - - - 12,742 12,742
* Fair value of investment property is calculated based on valuation given by external independent valuer. Payables - - - - - - - -
247 248
Note : 48 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES (Contd.) Note : 48 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES (Contd.)
As at March 31, 2021 ` in lakhs ` in lakhs

Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
1 month months months months years years 5 years 1 month months months months years years 5 years
(I) Trade Payables (II) Other Payables - - - - - - -
i) Total outstanding dues of micro - - - - - - - - i) Total outstanding dues of - - - - - - - -
and small enterprises micro and small enterprises
ii) Total outstanding dues of 27,930 - - - - - - 27,930 ii) Total outstanding dues of 9,949 - - - - - - 9,949
creditors other than micro and creditors other than
small enterprises micro and small enterprises
(II) Other Payables - - - - - - - Debt Securities 30,772 1,90,142 9,348 2,05,289 3,07,560 54,811 2,926 8,00,848
i) Total outstanding dues of - - - - - - - - Borrowings(Other than Debt Securities) 94,591 1,37,690 3,79,465 8,55,975 26,43,106 7,98,703 84,373 49,93,903
micro and small enterprises Subordinated Liabilities 11,370 9,182 14,636 44,321 1,95,966 1,13,415 2,70,774 6,59,664
ii) Total outstanding dues of 20,492 - - - - - - 20,492 Other Financial Liabilities 24,825 890 1,335 2,665 9,542 2,071 - 41,328
creditors other than micro Total Undiscounted 1,93,554 3,37,904 4,04,784 11,08,250 31,56,174 9,69,000 3,58,073 65,27,739
and small enterprises financial liabilities
Debt Securities 1,13,137 2,70,683 1,08,618 1,48,066 5,52,907 1,60,428 2,712 13,56,551 Total net Undiscounted) 3,14,891 (1,67,043) 2,00,524 1,02,927 3,77,357 3,80,166 12,55,868 24,64,690
Borrowings(Other 1,59,219 3,08,806 7,48,826 7,09,140 25,22,320 6,94,544 1,10,157 52,53,012 financial assets/(liabilities)
than Debt Securities)
Note 49: DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES
Subordinated Liabilities 273 37,967 12,769 78,271 1,66,250 76,319 15,33,381 19,05,230
Other Financial Liabilities 41,066 913 1,302 2,069 10,402 583 - 56,335 The Group has taken office premises on lease for its operations.
Total Undiscounted 3,62,117 6,18,369 8,71,515 9,37,546 32,51,879 9,31,874 16,58,992 86,32,292 The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Group is restricted from
financial liabilities assigning and subleasing the leased assets and some contracts require the Group to maintain certain financial ratios. There are several
Total net Undiscounted 4,10,928 36,768 (21,933) 4,26,264 5,58,890 4,35,433 4,49,000 22,95,350 lease contracts that include extension and termination options and variable lease payments, which are further discussed below.
financial assets/(liabilities)
The Group also has certain leases of machinery with lease terms of 12 months or less. The Group applies the ‘short-term lease’
recognition exemptions for these leases.
Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included in Property,
1 month months months months years years 5 years Plant and Equipment and the movements during the period:
Financial Assets
Cash and Cash Equivalents 3,05,807 41,302 - - - - - 3,47,109 Other Disclosures
Bank balances other than 2,068 13,100 3,02,998 6,613 22,384 4,817 16,264 3,68,244
Cash and Cash Equivalents (i) Movement in the carrying value of the Right to Use Asset
` in lakhs
Derivative financial instruments - - 1,711 - 7,816 1,893 - 11,420 Particulars - Buildings As at As at
Receivables March 31,2021 March 31,2020
i) Trade Receivables 3,019 - - - - - - 3,019 Opening Balance 11,030 11,591
ii) Other Receivables 3,536 - - - - - - 3,536 Depreciation charge for the Period (4,634) (4,259)
Loans 1,91,007 1,15,874 2,96,355 11,97,025 34,84,077 13,32,617 15,83,534 82,00,489 Additions during the Period 1,563 4,292
Investments Adjustment/Deletion (37) (594)
i) Associate - - - - - - 2,477 2,477 Closing Balance 7,922 11,030
ii) Others - - - - 302 - 490 792
Other Financial Assets 3,008 585 4,244 7,539 18,952 9,839 11,176 55,343
Total Undiscounted 5,08,445 1,70,861 6,05,308 12,11,177 35,33,531 13,49,166 16,13,941 89,92,429
financial assets (ii) Classification of current and non current liabilities of the lease liabilities
` in lakhs
Financial Liabilities Particulars As at As at
Derivative financial instruments - - - - - - - - March 31,2021 March 31, 2020
Payables - - - - - - - Current liablities 4,450 5,158
(I) Trade Payables - - - - - - - Non Current Liabilities 4,803 7,267
i) Total outstanding dues of 70 - - - - - - 70
Total Lease liabilities 9,253 12,425
ii) Total outstanding dues of 21,977 - - - - - - 21,977
creditors other than micro
249 250
Note 49: DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES (Contd.) NOTE 50: ADDITIONAL INFORMATION AS REQUIRED BY PARAGRAPH 2 OF THE GENERAL INSTRUCTIONS FOR PREPARATION OF
(iii) Movement in the carrying value of the Lease Liability CONSOLIDATED FINANCIAL STATEMENTS TO SCHEDULE III TO THE COMPANIES ACT, 2013 AS AT AND FOR THE YEAR ENDED MARCH
` in lakhs
31, 2021 AND MARCH 31, 2020
March 31,2021 March 31,2020
Opening Balance 12,425 12,421 As at March 31, 2021 ` in lakhs
Interest Expense 958 1,183 Net Assets (i.e total assets Share in Profit and Other Comprehensive Total Comprehensive
Lease Payments [Total Cash Outflow] (5,026) (4,877) less total liabilities) Loss Income Income
Name of the As % of As % of As % of As % of
Short term rent concession (630) -
entities Consolidated Consolidated Consolidated Consolidated
Additions during the year 1,563 4,292 Net Assets Profit and Loss Other Total
Adjustment/Deletion (37) (594) Comprehensive Comprehensive
Closing Balance 9,253 12,425 Amount Amount Income Amount Income Amount
I. Parent
Cholamandalam Investment and 99% 9,48,743 100% 1,51,410 119% (3,478) 99% 1,47,932
(iv) Contractual Maturities of Lease liability outstanding Finance Company Limited
` in lakhs
II. Subsidiaries
March 31,2021 March 31,2020 Cholamandalam Securities Limited 0% 3,437 0% 492 -6% 175 0% 667
Less than one year 4,618 5,410 Cholamandalam Home 1% 5,376 0% 236 -13% 379 0% 615
One to five Years 5,780 8,859 Finance Limited
Total 10,398 14,269 Minority Interests 0% 0 0% 0 0% 0 0% -
in all subsidiaries
(v) The following are the amount recognised in the Profit or Loss statement III. Associates (Investment
` in lakhs as per equity method)
Particulars Year ended Year ended White Data Systems India 0% 2,424 0% (53) 0% 0 0% (53)
March 31,2021 March 31,2020
Private Limited
Depreciation expense of right-of-use assets 4,634 4,259
Vishvakarma Payments 0% 0 0% 0 0% 0 0% 0
Interest expense on lease liabilities 958 1,183
Private Limited
Expense relating to short-term leases (included in other expenses) 3 8
100% 9,59,980 100% 1,52,085 100% (2,924) 100% 1,49,161
Expense relating to leases of low-value assets (included in other expenses) - -
Variable lease payments (included in other expenses) - -
Total amount recognised in profit or loss 5,595 5,450
Lease expenses relating to short term leases aggregated to ` 3 Lakhs during the year ended March 31, 2021 Net Assets (i.e total assets Share in Profit and Other Comprehensive Total Comprehensive
Lease liabilities are recognised at weighted average incremental borrowing rate ranging from 8% to 12%. less total liabilities) Loss Income Income
The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations Name of the As % of As % of As % of As % of
entities Consolidated Consolidated Consolidated Consolidated
related to the lease liabilities as and when they fall due. Net Assets Profit and Loss Other Total
Many lessors have provided rent concessions to lessees as a result of the Covid-19 pandemic. Rent concessions represents rent reductions Comprehensive Comprehensive
for a period of time. Company has applied practical expedient to Ind AS 116 rent concessions. Pursuant to this, Group has recognised Rs 630 Amount Amount Income Amount Income Amount
lakhs in Statement of Profit and loss as reversal in the financial statements. I. Parent
The Group has several lease contracts that includes extension and termination contracts. These options are negotiated by the Management Cholamandalam Investment 99% 8,09,197 100% 1,05,107 91% (6,344) 100% 98,763
to provide flexibility in managing the leased-asset portfolio and align with Group's business needs. Management exercises significant and Finance Company Limited
judgement in determining whether these extension and termination are reasonably certain to be exercised. Also refer note 6B II. Subsidiaries
Cholamandalam Securities Limited 0% 3,471 0% 261 3% (210) 0% 51
Cholamandalam Home 1% 4,841 0% 46 6% (420) 0% (374)
Finance Limited
Minority Interests in all 0% - 0% - 0% - 0% -
subsidiaries
III. Associates (Investment
as per equity method)
White Data Systems 0% 2,477 0% (42) 0% - 0% (42)
India Private Limited
100% 8,19,986 100% 1,05,372 100% (6,974) 100% 98,398
251 252
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Notes forming part of the Consolidated Ind AS Financial Statements (Contd.) Statement containing salient features of the financial statement of subsidiaries/ associate companies/ joint ventures
For the year ended March 31, 2021
Part “A”: Subsidiaries ` in lakhs
Note : 51 EVENTS AFTER REPORTING DATE
Name of the subsidiary Cholamandalam Home Finance Limited Cholamandalam Securities Limited
There have been no events after the reporting date that require disclosure in the financial statements.
Reporting period for the subsidiary concerned, if March 31, 2021 March 31, 2021
Note : 52 PRIOR PERIOD INFORMATION different from the holding company’s reporting
period
Prior period figures have been regrouped, wherever necessary, to conform to the current period presentation.
Reporting currency and Exchange rate as on the Not applicable Not applicable
last date of the relevant Financial year in the case of
As per our report of even date foreign subsidiaries.
For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors Share capital 4,240 2,250
ICAI Firm Regn No.101049W/E300004 Reserves & surplus 1,136 1,187
Total assets 6,172 8,670
Total Liabilities 796 5,233
Membership No: 221268 Investments 963 371
Turnover 3,715 3,014
Place : Chennai Company Secretary Chief Financial Officer Profit/(Loss) before taxation 262 684
Provision for taxation 84 192
Profit/(Loss) after taxation 178 492
Proposed Dividend - -
% of shareholding 100.00% 100.00%
Names of subsidiaries which are yet to commence Not applicable Not applicable
operations
Names of subsidiaries which have been liquidated Not applicable Not applicable
or sold during the year.
Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Name of Associates White Data Systems Vishvakarma payments
Private Limited Private Limited
Latest Balance Sheet Date March 31, 2021 March 31, 2021
Shares of Associate/Joint Ventures held by the company on the year end
No. 12,75,917 2,100
Amount of Investment in Associates/Joint Venture (` in lakhs) 800 0.21
Extend of Holding % 30.87% 21.00%
Description of how there is significant influence By way of shareholding By way of shareholding
Reason why the associate/joint venture is not consolidated Not applicable Not applicable
Networth attributable to Shareholding as per latest Balance Sheet 1,065 1.00
Profit / (Loss) for the year - ` in lakhs (230) 0*
Considered in Consolidation - ` in Lakhs (53) 0*
Not Considered in Consolidation – ` in Lakhs (177) 0*
Names of associates or joint ventures which are yet to commence operations Not applicable Yet to commence
Names of associates or joint ventures which have been liquidated or sold Not applicable Not applicable
during the year.
*represents amount less than ` 50,000
Vellayan Subbiah
Chairman
Date : May 7, 2021 P. Sujatha D. Arul Selvan Ravindra Kumar Kundu
Place : Chennai Company Secretary Chief Financial Officer Executive Director
253 254
Notes:
GLOSSARY
A. TERMS
Assets Under Management (AUM) Business AUM and Investments
Business AUM On - Balance sheet Business assets and Off - Balance sheet Business assets
Business AUM(Net) Business AUM less Expected Credit Losses(ECL) provisions
Net credit Losses (NCL) Loan losses and ECL provision
B. PERFORMANCE RATIOS
Operating Expenses to Assets Total Expenses (Less: Finance Costs & Impairment of Financial Instruments)/Average
of Closing Assets
Loan Losses % Impairment of Financial instruments/Average of Closing Assets
PBT-ROTA Profit Before Tax/Average of Closing Assets
Prot Before Tax to Income Profit Before Tax/Total Income
Return on Total Assets - PAT Profit After Tax/Average of Closing Assets
Return on Equity - PAT Profit After Tax/Average of Shareholder's funds
Closing assets Represents Business AUM for Respective Business and represents on-balance sheet business assets and Investment at
Company’s level for computing ratios
C. INVESTOR RATIOS
Earnings per Equity share Profit After Tax/Weighted Average number of shares
Book value per Equity share Networth/Total Number of Shares
Dividend per Equity share Interim Dividend paid & Final Dividend proposed per Equity share
CAR (Capital Adequacy Ratio) Tier I & Tier II Capital/Risk Weighted Assets
255 256
Notes: Notes:
257 258
259 260

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July 8, 2021 //2//

Notice to Members SPECIAL BUSINESS:

CORPORATE OVERVIEW CORPORATE INFORMATION

04 Corporate Information BOARD OF DIRECTORS

09 Pan India Presence Mr. Vellayan Subbiah

Mr. Rohan Verma

55 Management Discussion and Analysis SECRETARY

M/s. S.R. Batliboi & Associates LLP

About Chola About Murugappa Group

Chola’s Statement Of Purpose Our Journey

BELIEVE IN CHOLA FY 2020-21

Our Presence Believing In Dreams And Making It Happen.

COMMERCIAL VEHICLE LOANS

Karnataka (62) Andhra Pradesh (52)

THREE WHEELER LOANS

CONSTRUCTION EQUIPMENT LOANS

Believing In Dreams And Making It Happen.

Board of Directors Board of Directors

 Graduate in Commerce and has completed Post Graduate Programme in Management

Business Highlights CAGR: 9% Disbursements YOY: -10%

NIM 7.2 6.8 6.8 7.5 8.6

Expense Ratio 2.3 2.6 2.6 3.0 3.6 9,560

Tier II Capital 3.9 5.4 4.9 5.1 5.0

Capital Adequacy Ratio 19.1 20.7 17.4 18.4 18.6

Disbursement Growth -10.5 -4.5 21.3 35.1 13.5 **3.8%

DIVERSIFIED ASSET PORTFOLIO 3 Wheeler 50,415

2 Wheeler 23,387 40,606

Strong player in the market, deep rooted in semi urban & FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21

 Highly diversiﬁed in terms of product, geography &

 Long standing relationships with dealers & manufacturers

 Experienced In-house Sales, Credit Ops, Collection and

 Oﬀering product customization and personalization **2.3% * 0.9%

 Gaadibazaar – Digital platform for buying and selling Note:

customer engagement has enabled us to deliver greater

ASSET CLASS Loan Losses & Provisions PBT - ROTA %

 Self-occupied residential property (� in crores) (� in crores)

 Self-occupied commercial property

BUSINESS REVIEW - HOME LOANS Our Subsidiaries

“We believe in making Affordable Housing a reality.”

 Optimizing the cost of funds

SEAMLESS DIGITAL EXPERIENCE A Catalyst For Progress

A Transformative Year CHOLA’s Pandemic Support programs

Corporate Social Responsibility

Financial Literacy Program

Profit After Tax (PAT) (Before considering

“I had my ﬁrst eye check up in the Loans(net) - Ind AS / Receivables under

Liabilities and Equity

Borrowings 63,72,999 55,00,543 50,56,674 38,33,033 24,10,910

FINANCIAL YEAR ENDED 2016 2015 2014 2013 2012

Total Income 4,19,371 3,69,119 3,26,284 2,55,568 1,78,821

Profit Before Tax (PBT) (Before considering

Directors’ Responsibility Annexure-I

To b) The Securities and Exchange Board of India (Prohibition of

SN. Name of the Item Location of

SN. Name of the Item Location of

(d) Amount spent in Administrative Overheads - ` 55.70 lakhs

Annexure-III Nature of Disclosure

ended 31 March, 2021 in the last financial year and its

increase in the managerial

b) Percentage increase in remuneration Name of the KMP / Designation % increase

b) Percentage increase in remuneration Name of the KMP / Designation % increase