ABFL Annual Report FY 2023 New

ANNUAL REPORT
2022-23
E N R I C H I N G L I V E S,
WINNING AS
PROTECTING INVESTING FINANCING ADVISING
Aditya Birla
Finance Ltd.
Contents
01
HIGHLIGHTS
Year in review
Enriching Lives, Winning as ONE 01 ₹80,556 Cr ₹53,964 Cr
Corporate Overview 02 Total AUM Retail, SME and HNI AUM
CEO’s Message 04
Product Portfolio 06
Key Performance Indicators 08
₹49,223 Cr 323
Digital Transformation and
Data Analytics 10
HR Proposition 14 Total disbursements Branches
Board of Directors 18
Leadership Team 22
6.84% 2.45%
26 Net Interest Margin RoA
Statutory reports
Management Discussion
and Analysis 26
Board’s Report 38 14.76% 16.38%
Corporate Governance Report 74 RoE CRAR
96 ₹17,041 Cr Rated AAA/Stable

by ICRA, India
Financial statements Wealth AUA
Ratings and CARE
Credit Ratings
Note: Disbursements are non-LOC.

Enriching Lives, Winning as We offer a wide range of solutions
to enable our customers to navigate
their life needs regarding money. We
follow an omnichannel distribution
approach to let customers choose their
preferred way of dealing with us. We
are expanding our physical network
in credit-underpenetrated Tier III and
IV cities and a digital-first strategy
for product innovation, customer
At Aditya Birla Finance Limited, selection, seamless onboarding and
the guiding pillars of this approach are improving service delivery.
One Customer, One Experience and One We are getting a balanced and granular
Team. We harness leveraging data, digital product mix with improving credit.
We have embarked on a journey that
and technology to achieve quality and leaves an indelible mark on the lives
profitable growth. We focus on collaborating we touch, enriching individuals –
customers, employees, partners and
by leveraging synergies to drive cross-sell
distribution community, nurturing
and deliver complete and comprehensive communities, and fostering a brighter
solutions to our customers. future for all. Together, we shall
conquer new horizons, Winning as One.
CORPORATE OVERVIEW
For the Consumer, When They Need

Aditya Birla Finance Limited (ABFL) is a subsidiary of Aditya Birla Capital Limited
(ABCL), one of India’s most diverse financial services conglomerates. Within the NBFC
universe, Aditya Birla Finance is among India's top-five diversified NBFCs, with an AUM
of ₹80,556 Crore at the end of FY23. At ABFL, we endeavour to become a preferred
financial services brand for our diverse customers’ varied needs across their life cycles.
Our customised solutions include personal loans, business loans, check-out financing, loan against property, term loans,
working capital loans, loan against securities, project loans and wealth services. ABFL has also built digital lending platforms,
allowing an end-to-end online journeys for offering personal and business loans to captive customers, extended employee
base and MSMEs. We deliver rapid, easy, and hassle-free services to retail and MSME customers through this.
Customer segment-wise aum mix (%)
5.7 Million
19%
31%
Active customers
10%
Personal & Consumer
67%
Unsecured business
Secured business
40% Corporate/Mid-market Retail + SME + HNI Mix of AUM
Note: Values as of March 2023.
ABOUT ABCL
ABCL is a subsidiary of the Aditya Birla Group, a Fortune 500 Company, and is the holding Company for its financial services
businesses. ABCL companies offer protecting, investing, and financing solutions with 1,295 branches, over 2,00,000
agents/channel partners, various bank partners, and over 34,000 employees. ABCL had about ₹3.6 Lakh Crore in assets
under management, a consolidated lending book of over ₹94,936 Crore, and an active client base of over 38 Million via its
subsidiaries and joint ventures, as of 31st March, 2023.
Vision Values
To be a leader and role model in • Integrity • Commitment
a broad-based and integrated
• Passion • Seamlessness • Speed
financial service business.
2 Aditya Birla Finance Limited

CORPORATE STATUTORY FINANCIAL
OVERVIEW REPORTS STATEMENTS
Geographical Presence
We are expanding our omnichannel presence

by maximising the use of our branch network,
digital channels, partnerships, and presence
in various ecosystems to grow our customer
base. We are strategically spreading our
footprint to the country's Tier III and Tier IV
cities with high untapped potential.
2 4
14
6
Number of branches
16 6
19
19 4
12
7
15 7
25
8
22
35
11
17
Branches
20 (in numbers) 323
6
45
159
94
68
57
Note: Map not to scale. FY19 FY20 FY21 FY22 FY23
Annual Report 2022-23 3

CEO’S MESSAGE
Empowering Customers:
Fulfilling Aspirations Optimally
At ABFL, customer
centricity has always been
at the core of our brand
philosophy and operations.
We have developed
customized solutions to
enable a smooth financing
journey for our customers.
We are committed to
establishing ABFL as a
trusted financing partner
to the customers, who they
can count on for quick,
hassle-free loan disbursal.
Dear stakeholders, Between March 2022 and March 2023, the RBI raised the
repo rate by 250 bps to reach 6.5%. However, India remained
I am happy to present the Annual Report for FY23, another
resilient, registering 7.2% GDP growth for FY23, the highest
strong year of overall growth where we continued to design
amongst large economies. Credit off-take in India hit a 11
solutions to enable a smooth financing journey for our
year high, with a growth of 15% in FY23. Now, with inflation
customers by leveraging the strength of our parent and
cooling to two years low of 4.25% in May 2023 and the
group companies.
RBI has hit the pause button on rate hikes in the last two
monetary policy committee (MPC) meetings, things are
Year in review stabilising. The growth momentum is visible in increasing
The year gone by was challenging in terms of the global industrial output and capacity utilisation, substantial
macro environment. The Russia-Ukraine conflict led to improvement in services and manufacturing PMI and rising
inflation becoming a significant concern worldwide. The GST collections. And we expect the positive trends to
central banks in most parts of the world, including the continue for the economy and the sector in FY24.
Reserve Bank of India (RBI), responded by raising interest
rates and removing the monetary accommodation offered Focus on MSME
during the two years of the pandemic.
We launched a unique and differentiated B2B MSME digital
platform in March 2023 - “Udyog Plus”. Udyog plus is an
acquisition engine for MSMEs looking for small ticket loans.

This innovative one-stop business platform offers a wide recognition, bureau integration and e-contract facilities for
range of solutions for MSMEs, including financing, protection, KYC procedures. We utilise Voice IVR bots to handle our
investments, advisory and value-added services for managing inbound contact centre calls and email bot to respond to
and growing their businesses. We are among the leading customer emails. We have enabled self-service channels with
NBFCs in India, with a diversified portfolio, well-equipped to STP for better service journeys of our customers. We have
meet all the financing needs of the customers. activated our repayment hub with multiple digital payment
channels for EMI collections.
Performance
We ended FY23 with a robust performance. Our active We use analytics in all functions, including sourcing,
customer base grew to 5.7 Million compared to 3.6 Million underwriting and collections leading to reliable customer
last year. Our disbursements for the entire year stood at service and satisfactory outcomes. We have used digitisation
₹49,223 Crore, more than double of what we did in FY22, and and automation in customer onboarding, servicing,
AUM stood at ₹80,556 Crore, registering 46% y-o-y growth. and service interactions through process automation
Our Retail, SME and HNI segment AUM grew 57% year on and collections.
year, constituting 67% of our portfolio. RoA of the business
was 2.45%, and RoE was 14.76% in FY23. We have built an utterly agile underwriting model with
inbuilt scorecards. We have created the credit engines using
This year, we doubled our branch footprint to 323 by adding alternate data for credit decisions, STP processes for faster
164 new branches in FY23. Despite expansion in front-line TAT and predictive models for upselling.
capacity, our cost-income ratio (CIR) remained very effective.
I attribute this to our continued technological investments Way forward
to digitise processes to grow sustainably. Our net interest We will fuel our next growth phase by exponentially
income increased 43% to ₹4,410 Crore from ₹3,088 Crore. expanding our frontline distribution and strategic investments
Following a well-matched ALM and diversified borrowing mix, in digital and direct sourcing channels.
we delivered a 60 basis points year-on-year improvement
in net interest margin (NIM), taking it to 6.84% for the year. As we step into the future, we will drive the next leg of
We closed FY23 with a profit before tax of ₹2,090 Crore, growth with our enhanced frontline distribution capacity
delivering a 41% growth yearly. and investment in digital and direct sourcing channels. By
seamlessly connecting with customers on their preferred
₹80,556 Cr platforms, we aim to create unmatched experiences. We

have been driving granularity in business through ‘our
presence’ in the consumer, personal and MSME space and
Total AUM
believe it to be an ample opportunity.
₹1,554 Cr We are poised to redefine the financial services landscape

with a relentless focus on innovation, customer-centricity,
PAT and excellence. We will ‘continue’ to expand our market share
through innovative product offerings. We will be collaborating
with new partners and diversifying our digital ecosystem. We
will capitalise on secured and unsecured segments with
Credit quality a calibrated approach to risk.
The asset quality has consistently improved over the year,
with GS 2 (Gross Stage 2) + GS 3 (Gross Stage 3) coming On behalf of our Board of Directors, I express my sincerest
down from 8.98% in March 2022 to 5.84% in March 2023. gratitude to our customers, investors, vendors, collaborators,
GS 3 has reduced to 3.12% from 3.58% last year. We governing bodies, and employees for all their support over
maintain our provision coverage ratio at a healthy 46.2% as the years. I hope to receive your continued support in our
on March 2023, up from 39.5% in March 2022. exciting growth journey ahead.
Digitalisation and analytics

We have adopted the digital-first approach and continue to
Mr. Rakesh Singh
make our systems more robust and future-ready. We leverage
our technological infrastructure for customer acquisition, Managing Director and CEO
customer services, process automation and collections.
Our loan origination and management systems use facial

PRODUCT PORTFOLIO
Catering to Diverse Customer Segments

We leverage our years of experience to utilise our broad product mix to achieve greater
profitability while creating value for our customers. We offer our customers a diverse
and well-balanced range of products and services. We cater to the varied needs of
customers across retail, HNI, ultra HNI, micro-enterprises, SMEs, and mid and large
corporates.
SEGMENT-WISE PRODUCT OFFERING
PERSONAL AND CONSUMER UNSECURED BUSINESS
PRESENCE PRESENCE
Semi-urban areas Semi-urban areas
ATS ATS
~₹28,000 ~₹10.7 Lakh

FOCUS FOCUS
Salaried professionals with a focus on the emerging Business owners and self-employed professionals
income segment engaged in small/mid-sized businesses
PRODUCTS PRODUCTS
• Personal Loans • Business Loans
• Consumer Loans • Supply Chain Finance
• Checkout Financing • B2B Digital Platforms
• Credit Card • Business Overdrafts
Note: ATS - Average Ticket Size

SECURED BUSINESS CORPORATE/MID-MARKET
PRESENCE PRESENCE
Semi-urban areas/SME clusters Top six or seven cities in India
ATS ATS
~₹1.8 Cr ~₹53.5 Cr
FOCUS FOCUS
Business owners and self-employed professionals Pedigreed group corporates/Mid-market companies
engaged in small/mid-sized businesses in-focus sectors/Category A/A+ developers
PRODUCTS PRODUCTS
• Loans Against Property • Capital Expenditure
• Working Capital Loans • Working Capital Funding
• Loans Against Securities • Structured Finance
• Lease Rental Discounting • Developer Financing
• Project Finance
WEALTH SERVICES
Over the years, ABFL has enhanced and expanded its facilitate investment decisions by leveraging our strength in
portfolio and positioned itself as a one-stop shop for the capital market research.
varied financial needs of customers. Technology-enabled
ABW comprises of two verticals two verticals – Non-Retail
solutions make the business smooth, financially feasible and
and Retail, catering to different segments of the industry:
scalably expandable.
High Net-Worth Individual Business, Corporate and Treasury
Aditya Birla Wealth (ABW) offers customised solutions to a Services, Business Partner Group and Online Business.
diversified range of customers through its strong network
of relationship managers, product specialists and service
managers. ABW is amongst few wealth outfits in India to
have an independent research team, which helps us to
empower our client with the latest market updates and
₹17,041 Cr 20,766
Assets under administration Business partners

KEY PERFORMANCE INDICATORS
Delivering Consistent Performance
Total Income Net Interest Income Profit After Tax (PAT)

(in ₹ Cr) (in ₹ Cr) (in ₹ Cr)
4,410 1,554
8,268
6,089 3,088 1,108

5,622 5,528 5,797
2,481 2,508 834
2,335 805 769
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
10.1 17.2 16.8
Cost-Income Ratio (CIR) GNPA NNPA

(%) (%) (%)
36.2 3.9 2.7
31.7 32.1 3.6
29.1 30.7
3.1 2.2
2.9
1.7 1.7
1.6
1.0
Five-year CAGR %

Total AUM ROA Return On Equity (ROE)

(in ₹ Cr) (%) (%)
80,556 2.5 14.8
2.3
12.9
1.9 11.9
55,180 1.7 10.5
51,714 1.7
48,689 9.2
47,057
11.7

DIGITAL TRANSFORMATION AND DATA ANALYTICS
Digitalisation – a new way to the future

We at ABFL continue to invest in our technological and digital initiatives to accelerate
reinvention across the customer journey. We are also actively enhancing our
capabilities across data engineering, data science and analytics. ABFL has consistently
implemented the best technologies available at each stage of its journey. With these
investments, a large part of its customer acquisition and collections during the year
has been through digital platforms leading to accelerated growth.
We deliver a unique digital experience to our customers throughout the loan process, from onboarding to disbursement to payment
facilities and other services. Furthermore, we are using technology to expand our Company's presence by cross-selling, lowering
turnaround times, offering pre-approved loans, and making better-informed lending decisions. We have primarily relied on data
analytics solutions for sourcing, underwriting, and increasing efficiency in servicing and collections.
LEVERAGING TECHNOLOGY
• Deep-mine existing • Scale up Udyog Plus
customer base acquired – a differentiated B2B
through digital ecosystems digital platform for the
using analytics and MSME ecosystem.
increase cross-sell. • Differentiated offerings with
• Scorecard-based Straight- digitally assisted assessed
through processing income programme and
(STP) journeys with zero STPs, scorecard journeys for
human interventions. small-ticket loans.
• Tie up with new partners • Enhance fee income
to diversify digital opportunity through
ecosystem sourcing mix in new products and digital
personal loans. delivery channels.
• End-to-end digital channel • Integrate with the Open
for direct to corporate Network for Digital
personal loans distribution. Commerce (ONDC) and Open
Credit Enabled Network
(OCEN) platform and partner
with e-commerce players.

USE OF ANALYTICS IN OPERATIONS

Sourcing Underwriting Collections
• For new to business customers, • Analytical tools help us • Analytical tools help us in root cause
we create scorecards and apply in identifying credit- identification (for instance, inability
risk-based differential pricing. worthy customers, and in to pay) and its solutions.
• Analytical tools help us in generating custom multiple • Analytical tools help us in preparing
arranging pre-approved loans and application scorecards. base for collection by improvising
assist in cross-selling of mutual • Analytical tools help us in offering our sourcing strategy through
funds and insurance products to appropriate credit line through incorporation of collection feedback.
existing customers. calculation of fixed obligation • Customised collection process:
• We use analytical tools to assist to income ratio for income Basis multiple collection scorecard,
in cross-selling of loans and re- estimation and obligation. Preparing customised base for
engagement through competitive • Analytical tools help us establish different channels.
pricing with ex-customers. an early-stage warning system. • Track agency performance: Rank the
• We use technolgy to customise • We employ risk-based pricing and collection agencies based on recent
deals and products and employ optimise field verification through and historical target achievement.
behavioural scorecard analytics for digital processes.
new products.
DIGITAL INITIATIVES
CUSTOMER CUSTOMER PROCESS COLLECTIONS

ACQUISITION SERVICING AUTOMATION
99% 98% 83% 88%

Customer onboarding EMIs collected digitally Digital service interactions E-mail bot accuracy
11
DIGITAL TRANSFORMATION AND DATA ANALYTICS
Udyog Plus – MSME platform
Aditya Birla
Finance Ltd.
Karo business befikar
We have launched Udyog Udyog Plus, a unique and differentiated one-stop business platform for MSME
customers, offers a wealth of useful features and tools to help MSMEs seamlessly
Plus, An Innovative One- achieve their larger business goals. It offers a paperless journey for business loans
Stop Business Platform and loan disbursement of up to ₹10 Lakh.
for MSMEs in March 2023
Finance Business Solutions
Loan E-commerce Banking

Paperless digital ffline to Online
O Current account
journey for Discovery
loan sanction
KEY OFFERINGS
Secured
Business Loans
Networking Accounting
Personal Loan
Explore Accounting tool
new connects Payroll
Industry Forums Management
Eco-system Based Loan
Loan for merchants
Content Business Solutions
and resellers on
government and private Knowledge Tax filings GST
ecommerce websites forums Business travel

BUSINESS UPDATE1
3,700+
Registered users
1,800+
Loan applications
1 As on 9 May 2023
Cash flow-backed lending by using

traditional and alternate data sources
along with value-added services for the
MSME ecosystem to manage and grow
their business.
Opportunities in
ABG ecosystem
hannel financing for dealers

C
Digital journeys for dealer
onboarding, limit drawdown
ad repayments
Secured lending for dealers

Loan against property
13
HR PROPOSITION
Empowering People for Success

At ABFL, we aspire to create an engaging workplace that attracts, retains, and helps
talent flourish. Our vision of being a leader in integrated financial services and fostering
a purpose-driven culture gives meaning to our employees. We offer a diverse and
inclusive work environment, cultivate positive relationships, provide challenging
assignments, and promote growth opportunities based on meritocracy.
Talent management Age Profile of Employees (%)

In talent management, our key focus
1
is building a strong, future-ready
talent pool and establishing a robust
4,799 15
29
leadership succession pipeline. Total Employee Strength
We aim to develop well-rounded,
customer-focused leaders who excel in
execution. In FY23, we initiated a top
team effectiveness intervention with
75%
Millennials in workforce
the objective to drive alignment and
foster a collaborative culture across all
levels. Last year, we continued building
digital, technology, risk and analytics
skills through various initiatives and
12% 55
Women in workforce
partnerships with global organisations.
<30 years 30-40 years
50% 40-50 years >50 years
Senior leaders undergone

leadership development journey Our healthcare initiatives
created in partnership with Harvard
Business Publishing
87 Health camps Bone density Body composition

Employees covered under check-ups analysis
flagship Leadership Development
programme to prepare them to take
larger roles in future
265
Employees across levels moved to new
roles helping them advance their career Yoga sessions Nutritional Breast health
in last two years counselling check-up

Employee wellness
and engagement
We prioritise employee health and
holistic well-being comprising emotional,
financial, intellectual and social well-
being to foster a happier workforce that
positively impacts customer satisfaction
and retention.
To support our employees, we have

empanelled onsite doctors and
counsellors. In FY23, the employee-
integrated wellness programme
managed by our health insurance vertical
was extended to all employees with
focused health coaching for those in
the high-risk category. We conducted
wellness campaigns and comprehensive
health assessment drives across
ABFL branches, promoting employee
participation in health check-ups. We
also prioritise preventive annual health
check-ups, partnering with diagnostic
centres nationwide.
15
HR PROPOSITION
Functional Learning Behavioural Learning and Diversity, Equity and

Our Company's philosophy is culture building Inclusion (DEI)
to provide every employee with Behavioural Learning focuses on At ABFL, diversity, equity and
continuous opportunities to learn three aspects of capability building inclusion (DEI) are ingrained in
and grow. An AI-enabled learning ABG values and culture cascade, our business operations. Our
app offers employees’ easy access managerial capability, and self- understanding of diversity goes
to personalised content that meets development. Every year, we invest in beyond gender, encompassing
their unique learning requirements. interventions to sustain and reinforce respect, openness to new ideas,
Employees leveraged these resources the culture around our values through and valuing contributions from
to enhance their skills and knowledge. surveys and other mechanisms. all employees. In FY23, our DEI
The functional L&D team focused on While self-paced learning is available focus involved
• FLS productivity 24x7x365, different focus areas of
• new joinee activation self-development were built around • increasing women's representation
• workforce capability building across the ABG competency framework throughout the organisation
sales and non-sales functions enabling employees to enhance their • developing and accelerating their
skills on personal effectiveness. progression into leadership roles
62% Improvement • promoting continuous engagement
In 90-day-performance, post 1,356+ Employees

Covered through Vit V one of our core
and communication regarding
the benefits and flexible policies
Pre-Joining Functional Induction available to women employees
onboarding programme to cascade
ABG purpose and values
11%
97% Women hires in FY23, with 61% in
Imparted CRISIL training on improving

credit risk underwriting strength
2,434+ Employees
Covered through behavioural training
Sales, Credit and Collection
interventions
12%
73% Women given role movements over
Certified platinum badge level 3,000+

e-learning courses
past two years
by CRISIL
25k+
Video-based modules
Aditya Birla
Capital was
1,128 Employees awarded as one
Participated in more than 2 learning
programmes in FY23
of the ‘2022 Best
Companies for
Women in India’
by Avatar.

Celebrate Motherhood Programme

Crèche/Nanny and Motherhood programme launched to enable women
meet their personal and professional commitments.
In FY23, Aditya Birla Capital introduced the "Celebrate Motherhood" programme, aligned with our purpose of providing
support to women employees who are expecting to be a mother. The programme includes "Stay in Touch" and "Return-To-
Work" elements, enabling seamless integration of personal and professional commitments. As part of the programme,
we offered all women employees access to crèche or nanny services, allowing them to focus on their work and pursue their
career aspirations without compromising childcare. This programme provides a range of benefits to support and guide
women during pregnancy and ensures a smooth transition when they resume work.
17
BOARD OF DIRECTORS
Guiding to Achieve Excellence.

21 October 2022. She is the Chief Prior to joining Aditya Birla Group, she
Executive Officer at Aditya Birla Capital held significant leadership roles and led
Limited ("ABCL"), the holding company several strategic initiatives as part of
of the financial services businesses the ICICI Group. She was the Executive
of the Aditya Birla Group. She joined Director at ICICI Bank, overseeing their
the Aditya Birla Group in July 2022 domestic and international Wholesale
and has since been instrumental Banking, Proprietary Trading, Markets,
in scripting the transformational and Transaction Banking Group. During
journey of Aditya Birla Capital to her long career span, she also served
build accelerated growth momentum as the Group CFO of the ICICI Bank
across its various businesses and was on the Board of ICICI Lombard
while maintaining a sharp focus on General Insurance Company, served as
profitability and return of capital. the MD and CEO of ICICI Venture Funds
Under her leadership, the Company Management Company, and chaired the
embarked on a strategic roadmap Board of ICICI Bank, Canada.
MS. VISHAKHA MULYE of ‘One ABC, One P&L’ approach,
Non-Executive Director resting it on the fundamental pillars of A Chartered Accountant and a career
Vishakha Mulye is a Non-Executive 'One Customer, One Experience and banker throughout her life, Vishakha has
Director of our Company with over One Team', to maximise its share of been honoured with various prestigious
three decades of rich experience in opportunities in the financial services awards and recognitions for her valuable
banking and financial services. She space and delivering long-term, contribution to the world of business
has been on the Company Board since sustainable value for stakeholders. and finance.
MS. ALKA BHARUCHA Her core areas of expertise are mergers

and acquisitions, joint ventures,
Independent Director private equity, banking and finance.
Ms. Bharucha began her career with Ms. Bharucha’s general corporate work
Mulla & Mulla and Craigie Blunt includes establishing mutual funds and
& Caroe and joined Amarchand & providing regulatory advice to foreign
Mangaldas as partner in 1992. In institutional investors, foreign venture
2008, she co-founded Bharucha capital investors, merchant bankers
& Partners, which, since inception, and other financial intermediaries. She
has been ranked by RSG Consulting, has experience acting for financial
London, among the 30 best firms in services clients and those in the
India. For years, Ms. Bharucha has telecommunications, power, and
been rated by Chambers Global, Legal logistics sectors. She is also actively
500 and Who’s Who Legal among engaged in representing transactional
India’s leading lawyers for years. She corporations for investments in retail,
chairs the transaction practice at defence, and manufacturing space.
Bharucha & Partners.

MR. SUBHASH CHANDRA

BHARGAVA
Independent Director
Mr. Bhargava is a retired Director
(Investments) of Life Insurance
Corporation of India. He was in the
Investment Department for 13 years.
He was involved in almost all activities
related to investments, such as project
financing, short-term and long-
term loans, dealing in equity, debt,
government securities, and monitoring
of corporates, among others. He has
attended various programmes at IIM,
Manchester School of Management
and others related to Finance. He was
also a member of the technical advisory
committee of RBI on Money, Foreign
Exchange, and Government Security
Markets from May 2004 to July 2005.
MR. NAGESH PINGE ICICI Bank and its Group Companies in

Risk Management (Chief Risk Officer),
Independent Director Regulatory Compliance and Internal
Mr. Nagesh Pinge is an expert in Audit (Group Head - Internal Audit).
Ethics, Corporate Governance, Risk Mr. Pinge is the Past President of the
Management and Internal Audit. He Institute of Internal Auditors, India. He
is a Chartered Accountant and Law is a recipient of AICCA award given by
Graduate from India. He has also the Asian Confederation of Institutes
completed the Executive Education of Internal Audit for “Outstanding
Program from the Stephen M Ross Contribution in Internal Audit” for the
School at Business of the University year 2017. He is also a recipient of
of Michigan, USA. ICAI award given by the Institute of
Chartered Accountants of India for the
In a career spanning 36 years, year 2014.
Mr. Pinge has worked with many
organisations of repute. He retired Mr. Pinge is a Regular Faculty at the
from Tata Motors in November “Masterclass for Directors” conducted
2016 as Chief-Internal Audit, Risk by the Institute of Directors in India.
Management & Ethics. Prior to He has authored a technical guidance
that, he was Chief Internal Audit of note on “Risk-based Audit for Banks”
Reliance Retail Ltd. and JSW Steel published by the Institute of Chartered
Ltd. Mr. Pinge has also worked for Accountants of India.

BOARD OF DIRECTORS
knowledge partner to other Incubators thermal wear player and Securenow

in India. The primary mission is to Tech Services, a PE-funded InsureTech
impact hundreds of early-stage startup. He is also a Trustee of the
startups through proprietary PadUp Braj Foundation, an NGO focused on
mentoring programmes, leading to environment and water conservation
improved success rates and helping and an Advisor to the E&H Foundation,
them grow successfully to the next working for the education and health
level and institutional funding. Over of underprivileged kids in UP and
200 startups have been impacted by FIIB, a leading MBA school in NCR.
PadUp Ventures over the last five years Apart from this, his key work areas
and it has built up a portfolio of over include mentoring entrepreneurs and
50 such companies. After a 30-year executives alike as an angel investor
career in Corporate India in leadership and a startup mentor. Having worked
roles, Rajat is now a Non-Executive on across Consumer, Telecom, Media &
several boards and advisory boards, Technology sectors, he has acquired
MR. RAJAT JAIN including Fino Payments Bank, Droom expertise in distribution, sales and
Independent Director Technologies, Intelligent Resource commercial, understanding consumers
Group, part of the 1billion GBP UK and enterprises across various spaces,
Mr. Rajat Kumar Jain, an IIT Delhi and
group RSG and Zydex Industries building, and working with teams and
IIM Ahmedabad alum is a Founder
(Advisory Board) a speciality chemicals growing businesses that revolve around
Director of PadUp Ventures, a
conglomerate. Recently he retired services and brands. He has also built
Knowledge and Mentoring Platform
from the Board of TIMDAA, a Bennett multifunctional expertise, strong market
focusing on providing deep mentoring
Colman GMR JV for Delhi Airport, and industry knowledge and an enviable
and incubation services to early-
Neva Garments, a leading branded industry network.
stage tech startups as well as a

Mr. Singh is the Managing Director in July 2011, Mr. Singh spent 16 years
and Chief Executive Officer at Aditya with Standard Chartered Bank. He
Birla Finance Limited. He also serves started with a role in Retail Assets
as a Director on the Board of Aditya (Mumbai and Kolkata) and became
Birla Housing Finance and Aditya Birla the Head of Mortgages, India. His last
Money Mart. He has over 25 years of assignment with Standard Chartered
experience in the financial services Bank was as a General Manager and
industry, cutting across both banking Head of SME banking in India and
and non-banking financial institutions. South Asia. Mr. Singh has attended
He is a part of several industry forums, advanced management programmes
including the Confederation of Indian at the Harvard Business School and
Industry and the Federation of Indian the Indian Institute of Management,
Chambers of Commerce and Industry. Calcutta, and holds a postgraduation
He lends his expertise as a member degree in International Relations.
of FICCI's Banking and Financial
MR. RAKESH SINGH Institutions Committee. He is also on
Managing Director and the Board of Narsee Monjee Institute of
Chief Executive Officer Management Studies. Prior to joining
Aditya Birla Finance Limited
and businesses and turning them loans, mortgages, SME lending, HNI
around by placing them on a high banking and broking. He joined the bank
growth trajectory. as a management trainee and rapidly
became the Managing Director and CEO
As an integral part of the Banking – Retail at Kotak Securities Limited.
& Financial Services industry, his
experience has been shaped over In his earlier stint, Kamlesh has been
a career spanning 25 years. In his part of several prestigious committees,
previous role as the Managing Director including the NSE & BSE Advisory
and CEO – Retail at Kotak Securities Committees and Secondary Market
Limited, Kamlesh was responsible Advisory Committee (SMAC). He holds
for planning and executing strategic a degree in engineering and is also a
initiatives. He was instrumental in management graduate.
driving the growth and strategy for
secondary markets, primary markets, Kamlesh is a part of the Senior
MR. KAMLESH RAO margin funding and distribution of Management Team at Aditya Birla
Non-Executive Director investment products. Prior to joining Capital. At ABSLI, he focuses on taking
Mr. Kamlesh Rao is the MD and CEO Kotak Securities Limited, Kamlesh the Company to a leadership position
at Aditya Birla Sun Life Insurance held various roles at Kotak Mahindra within the private life insurance space.
(ABSLI). He has a successful track Bank Limited for over 19 years. His
record of entering new markets experience spans across the asset
and liability portfolios, including retail
lending, business loans, unsecured

LEADERSHIP TEAM
Driving Growth at ABFL

Key managerial personnel
MR. RAKESH SINGH MR. TUSHAR SHAH

Managing Director and Chief Executive Officer –
Chief Executive Officer PSFG and KMP
MR. PRADEEP AGRAWAL MR. ANKUR SHAH

Chief Financial Officer Company Secretary

Leadership team
MR. DEEP PAL SINGH MS. SUJATHA SUDHEENDRA MR. KUMAR ASHISH
Chief Risk Officer Head – Human Resources and Head – Retail, Consumer and
Administration Micro-business
MR. UDAYAN SHARMA MR. SANTANU BASU MR. ARNAB BASU

Head – Mid Market and Head – SME Head – Wholesale Solutions
Wealth Management
MR. AJAY SINGH MR. NIKESH GUPTA MR. JITENDRA BHATI

Head – Wholesale Risk Chief Operations Officer Chief Compliance Officer

CORPORATE INFORMATION
BOARD OF DIRECTORS KEY MANAGERIAL PERSONNEL REGISTERED OFFICE

Ms. Vishakha Mulye Mr. Rakesh Singh Indian Rayon Compound
Non-Executive Director Managing Director and Chief Veraval – 362 266
Executive Officer Gujarat
Ms. Alka Bharucha
Tel: +91 2876 243257
Independent Director Mr. Tushar Shah Fax no: +91 2876 243220
Mr. Subhash Chandra Bhargava Chief Executive Officer – CIN: U65990GJ1991PLC064603
Independent Director PSFG and KMP Email: [email protected]
Website: www.adityabirlafinance.com
Mr. Nagesh Pinge Mr. Pradeep Agrawal
Independent Director Chief Financial Officer
Mr. Rajat Jain Mr. Ankur Shah CORPORATE OFFICE
Independent Director Company Secretary One World Centre
Mr. Rakesh Singh Tower-1 C, 18th Floor,
Managing Director and Chief JOINT STATUTORY AUDITORS Jupiter Mill Compound,
Executive Officer 841, Senapati Bapat Marg,
Deloitte Haskins & Sells LLP Elphinstone Road,
Mr. Kamlesh Rao Chartered Accountants Mumbai – 400 013
Non-Executive Director Tel: +91 22 4356 7100
M/s. Singhi & Co.
Chartered Accountants
COMMITTEES OF THE BOARD
Audit SECRETARIAL AUDITORS
• Mr. Nagesh Pinge
BNP & Associates
• Ms. Alka Bharucha
Company Secretaries
• Mr. Subhash Chandra Bhargava
• Ms. Vishakha Mulye
DEBENTURES TRUSTEES
Nomination and Remuneration Vistra ITCL (India) Ltd.
• Mr. Subhash Chandra Bhargava The IL&FS Financial Centre
• Ms. Alka Bharucha Plot C-22, G-Block, 6th Floor,
Bandra Kurla Complex, Bandra (E),
Mumbai – 400 052
Tel: +91 22 69300000
Corporate Social Responsibility Fax no: +91 22 2653 3297
• Ms. Alka Bharucha Email: [email protected]
• Mr. Rakesh Singh REGISTRAR AND SHARE
Stakeholders Relationship TRANSFER AGENT
• Mr. Subhash Chandra Bhargava Link Intime India Private Limited
• Ms. Vishakha Mulye C 101, 247 Park , L B S Marg,
Vikhroli West, Mumbai - 400 083,
• Mr. Rakesh Singh
Tel: +91 22 4918 6000
Email: [email protected]

Statutory Reports
Management Discussion and Analysis 26
Board’s Report 38
Corporate Governance Report 74
Management Discussion and Analysis
OVERVIEW OF GLOBAL & DOMESTIC ECONOMY INDUSTRY STRUCTURE AND DEVELOPMENTS

The global economy witnessed tightening of monetary In FY2023, systemic credit showed strong growth on the back of
conditions in most regions. As per the International Monetary pent-up retail demand from sectors such as housing and auto.
Fund (IMF) World Economic Outlook update, the global growth Credit demand also grew due to strong demand from NBFCs
prospects for CY2023 are estimated to fall to 2.8% from and the trade segment. Overall credit grew by an estimated
3.4% in CY2022 and then increase to 3.0% in CY2024, the 13.3% and systemic retail credit by 19.2%. NBFCs have shown
impact of which is expected to be witnessed by the Indian remarkable resilience and have gained prominence in the
economy as well. Global trade is estimated to have reached a financial sector ecosystem. Their share in the overall credit pie
record level of approximately $32 trillion in CY2022; however, increased to 18% in fiscal 2023 from 12% in fiscal 2008.
growth had turned negative during the second half of CY2022.
The trade outlook for CY2023 is expected to be negatively Over the years, NBFCs have consolidated their position as a key
impacted by geopolitical frictions, persisting inflation and intermediary in the Indian financing sector with differentiated
lower global demand. Furthermore, deceleration in domestic offerings such as niche financing, last-mile connectivity and
growth could lead to some softening in imports. Consequently, an alternative to bank financing. With respect to liabilities,
there is nervousness in global financial markets with potential NBFCs have become increasingly interconnected with the
consequences for the real economy and financial stability. financial system.
The projection for global inflation has been revised downwards The COVID-19 pandemic, the consequent acceleration in the
from 8.7% in 2022 to 7.0% this year and 4.9% in 2024. The adoption of technology and change in consumer habits, and
current account deficits of major Advanced Economies are likely the increasing availability of data for credit decision-making
to widen further, reaching the highest level after 2008. While have supported the further acceleration of retail credit growth.
government debt has moderated from a post-pandemic peak Revival of economic activity, pent-up demand, strong export,
in 2020, it still remains elevated relative to historical averages. and domestic support have strengthened credit growth in the
MSME segment. The market share of NBFCs in outstanding
Central banks across the world have front loaded monetary MSME loans (including LAP) was 25% in FY2022 and is
policy tightening to restore price stability. In the United States, estimated to have increased to 27% in FY2023. In terms of
the Federal Reserve started policy tightening in March 2022 and growth, NBFCs witnessed a CAGR of 21% between fiscals 2017
has raised the federal funds rate to 5.00-5.25% up to May 2023. and 2023, compared to 8% for other players. Going forward,
Central banks of other Emerging Market along with Advanced NBFCs are expected to continue to witness rapid growth and
Economies have also started retracting accommodative stances increase their market share in this segment.
towards policy normalisation.
BUSINESS OVERVIEW
In this highly uncertain global environment, the Indian economy
Headquartered in Mumbai, Aditya Birla Finance Limited (“the
is exhibiting signs of a gradual strengthening of the growth
Company/ABFL”) offers lending and wealth services to a diverse
momentum, drawing from macroeconomic fundamentals.
set of customers. ABFL is one of the top 5 diversified Non-Bank
India continues to remain a relative “bright spot” in the world
Financier in India (in terms of AUM). ABFL is classified as an
economy, and will alone contribute 15% of the global growth in
Upper Layer NBFC, in the list issued by RBI in September 2022,
2023 as projected by International Monetary Fund. IMF expects
amongst 15 other NBFCs. ABFL has a growing branch network
India to retain a high growth rate @ 6.8% in CY2022 and a bit
with 323 branches as on March 2023, with focussed expansion
of slow down to 5.9% in CY2023 before picking up to 6.3%
in Tier III & IV cities.
in CY2024. While favourable demographics and digitisation
pulled India out from pandemic lows, prudent fiscal policy and
The Company is pursuing its strategy on the following three
significant financing for capital investments provided in the
pillars, which will drive its next level of growth.
budget helped sustain the growth momentum.

• Product-suite Expansion niche products like 'Buy Now Pay Later', 'Checkout
Financing’ and ‘Education Loans’.
The first pillar of the Company’s strategy is its product
portfolio expansion with enhanced customer segmentation.
ABFL is one of the fastest growing player in Personal
ABFL over the last three years has increased the share of
loan segment in last 5 years. ABFL has also built digital
higher yielding retail loans in its loan book by enhancing its
lending platforms, allowing an end-to-end online
product profile not only in traditional products like personal
journeys for offering personal & business loans to captive
loans, business loans and LAP, but it has also launched
customers, extended employee base and MSMEs. This
will help in building leaner operating model in long term.
Below grid represents products offering by ABFL:
Segment Personal & Consumer Unsecured Business Secured Business Corporate / Mid-Market
Presence Semi-urban Semi-urban Semi-urban/SME Clusters Top 6-7 Cities
Sourcing DSA+Direct+Ecosystem DSA+Ecosystem DSA+Direct Relationship (Direct)
ATS1 ~₹28,000 ~₹10.7 Lakh ~₹1.8 Crore ~₹53.5 Crore
Salaried Professionals with Business owners & Self Business owners & Self Pedigreed Group
focus on emerging income employed professionals employed professionals Corporates/ Mid-Market
Products segment engaged in small/mid engaged in small/mid sized Cos in focus sectors/Cat
sized businesses businesses A/A+ developers
Personal Loans Business Loans Loan Against Property Capex/WC Funding
Consumer Loans Supply Chain Finance Working Capital Loans Structured Finance
Check-out Financing B2B Digital Platform Micro - LAP Developer Financing
Credit Card Business Overdraft Loan Against Securities Project Finance
Cross-Sell Personal Loan Top Ups & Cross sell, Insurance and Wealth Solution to ABFL & ABC customer ecosystem
1 ATS as on Mar 31, 2023
• Deeper distribution journey for business loans using traditional and alternate
data sources with value added services for MSMEs to
ABFL continues to accelerate investments in its
manage and grow their businesses. This platform has been
infrastructure. This is done in a calibrated manner with
integrated with both government and private e-commerce
control on both costs and outcomes and it has supported
websites, enabling credit facilities for sellers operating on
its strategy to sharpen its focus on Retail and SME
these platforms.
segments. As a result, the Company’s branch presence
grew from 159 in March 2022 to 323 as in March 2023. The ‘ABC One Branch’ strategy enables ABFL to add
to its presence organically at a lower cost. Additionally,
The overall active customer base of the Company grew
ABFL is also expanding its distribution channels and
by 57% Y-o-Y to 5.7 million as on 31st March 2023 and
sourcing increasingly from Direct & Digital Ecosystems.
continues its journey to add more customers expand its
The Company also plans to leverage the ABC and ABG
reach in retail segment. Strong product suite and strategic
ecosystem via cross-sell and providing wealth and
penetration into new business segments has helped ABFL
Insurance solutions.
to build a strong position across competitors. ABFL is
focussed on leveraging Digital channels to increase its • Cutting-edge Technology
customer base. Our comprehensive digital platform Another pillar of the Company’s strategy is to leverage
tailored for the MSME ecosystem, offers a paperless digital technology in order to make its business future ready.

Management Discussion and Analysis (Contd.)
To that end, ABFL has consistently implemented the best technologies available at each stage of its journey. With these
investments, a large part of its customer acquisition and collections during the year has been through digital platforms
leading to accelerated growth. This share has grown significantly in the last few years and we attribute our right to win in
this segment due to our strong balance sheet, lower cost of borrowings, end-to-end agile, plug and play API tech stack,
partner specific bespoke underwriting policies and product bundling for customer’s overall financial needs.
We leverage our technological infrastructure for customer acquisition, customer services, process automation and collections,
as set forth below:
Customer Acquisition Customer Servicing Process Automation Collections
During the Financial Year 2023, During the Financial Year 2023, We have witnessed a We leverage artificial intelligence
99% of our customers were 98% of the EMIs were collected significant penetration in for risk-based collections calling.
onboarded digitally. digitally electronic national automated
clearing and personal loans.
Our loan origination system Our inbound contact center calls During the Financial Year We leverage machine learning for
and loan management system are handled by voice IVR bots. 2023, 83% of our interactions low-risk cheque dishonor cases
use facial recognition, bureau with our customers happened calling.
integration and e-contract digitally.
facilities for KYC procedures. We have enabled self-service We utilize an email bot to We have activated our repayment
channels with STP for better respond to customer emails. hub with multiple digital payment
service journey of our customers. channels for EMI collections.
Further, we employ analytics in our operations, including, sourcing, underwriting and collections. Set forth below is a brief
summary of use of analytics in our operations:
Sourcing Underwriting Collections
For new to business customers, we create Analytical tools help us in identifying Analytical tools help us in root cause
scorecards and apply risk based differential credit worthy customers, and in generating identification (for instance, inability to
pricing. custom multiple application scorecards. pay) and its solutions.
For existing customers, analytical tools help in Analytical tools help us in offering Analytical tools help us in preparing base
arranging for pre-approved loans and assist in appropriate credit line through calculation for collection by improvising our sourcing
cross-selling of mutual funds and insurance of fixed obligation to income ratio for strategy through incorporation of collection
products to our customers. income estimation and obligation. feedback.
For such customers who were previously We are able to employ risk-based pricing We can customize our collection process
associated with us, analytical tools assist in and optimize field verification through by using multiple collection scorecards and
cross-selling of loans and re-engagement digital process. preparing customized base for different
through competitive pricing. channels.
For new products, we use technology to Analytical tools help us in setting-up an We can track agency performance and rank
customize deals and products, and employ early-stage warning system. the collection agencies based on recent and
behavioral scorecard analytics. historical target achievement data.
BUSINESS PERFORMANCE customer segments and products. The AUM book of the
Company stood at ₹80,556 Crore as on 31st March 2023.
The Company caters to the following lines of businesses:
The number of customers of the Company has grown
• Personal & Consumer 1.6x over the previous year. The Company continues its
• Unsecured Business focus on growing higher margin MSME and Retail lending.
• Secured Business Diversification of our customer segments has a significant
benefit as it allows us to pick and choose segments that
• Corporate/Mid-Market
work on a risk-return basis. The Retail, SME and HNI
ABFL believes that diversification is a key method of risk segments grew to ~67% of the portfolio in the last year.
mitigation. Its exposures are diversified across sectors,

Customer segment wise portfolio details as compared to previous year is given below:
(₹ in Crore)
Customer Segment March 2023 March 2022 Change % Mix %
Personal & Consumer 15,442 5,208 196% 19%
Unsecured Business 8,409 5,349 57% 10%
Secured Business 31,944 24,428 31% 40%
Corporate/Mid-Market 24,761 20,195 23% 31%
Total AUM 80,556 55,180 46% 100%
i) Personal & Consumer: Digital Lending has further enhanced ABFL’s capability to
offer unique lending solutions to customers of strategic
ABFL caters to individuals/small business owners/micro
alliance partners. Keeping up with the rapidly evolving
enterprise segments with focus on emerging income
digital solutions, the Company has been able to create a
segment. ABFL has built an entire spectrum of lending,
vast range of lending offerings for its partner platforms
financing and wealth services including (i) Personal Loans,
and their captive customer base. It has developed a plug-
(ii) Consumer Loans, (iii) Checkout Financing, (iv) Credit Card.
and-play ecosystem which allows faster integration across
partner journeys with improved customer experience,
The Company is steadily investing in broadening its
significant cost savings, consistency in the credit approval
portfolio towards small ticket loans including Buy Now Pay
process and real-time loan disbursals. This offering not
Later, Checkout Financing, Education Loans and Merchant
only provides an extended outreach but an opportunity to
Loans. This also synchronizes well with its efforts toward
assess and service customers using alternate data and
retailization and digitalization. The contribution from the
machine learning models. ABFL also caters to the demand
small ticket loans and the customized ecosystem products
arising out of working capital requirements through its
has grown considerably in the last two years. The Company
solutions like vendor financing and channel financing.
has created a unique online financing platform with lead
acquisition, assessment and servicing performed end-to-
This segment achieved a closing portfolio of ₹8,409
end through an All-Digital Loan Origination System.
Crore as on 31st March 2023 from ₹5,349 Crore as on
31st March 2022 registering a growth of 57% y-o-y. This
This segment in line with the Company’s focus on moving
was in line with the strategy to increase granularity of the
to a granular AUM. The business grew strongly in FY2023
overall portfolio. The average ticket size for the unsecured
and closed the financial year with AUM of ₹15,442 Crore,
book declined to ₹10.67 Lakh from ₹12.13 Lakh. Overall,
recording a growth of 196%. The average ticket size is
the contribution of this segment after an absolute growth
around ₹28,000 in FY2023, from ₹15,000 in FY2022. This
of 57%, grew marginally to 10.4% of total AUM of the
segment’s contribution to the overall AUM expanded to
Company in FY2023 from 9.7% in FY2022.
19% in FY2023 from 9% in FY2022.
iii) Secured Business:

ii) Unsecured Business:
This segment caters to Business owners and self-
With the Indian economy expected to emerge as one of the
employed professionals engaged in small/mid-sized
leading economies in the world, a major impetus is being
businesses. ABFL offers funding against financial securities
given to the SME sector which acts as the backbone of
to meet needs of this client segment to expand and grow
the economy. ABFL reaches out to this segment largely
by starting new operations, entering new markets and
through relationship managers.
introducing new products or increasing stake in their
companies through warrants conversion, subscribing to
rights issues, equity infusion in other businesses etc. The
Company provides solutions in the form of Loan Against

Property (LAP), Working Capital Loans, Loan Against marginal growth to ₹53 Crore in FY2023 from ₹50 Crore
Securities, Micro-LAP etc. to allow this segment to raise in FY2022. This portfolio constitutes 31% of the overall
funds quickly. AUM in FY2023, down from 37% in FY2022. This is in line
with the Company’s objective to diversify its AUM.
ABFL caters to the needs of this segment by financing their
requirements through solutions like term loans, working WEALTH BUSINESS
capital facilities, capex funding requirements through our
Aditya Birla Wealth (ABW) offers customised solutions to
diversified product solutions. It also offers products like
a diversified range of customers through its strong network
Lease Rental Discounting (LRD) to enable clients to finance
of relationship managers, product specialists and service
business expansion and asset creation by monetizing and
managers. ABW is amongst few wealth outfits in India to have
unlocking value of their property with rent from lessees
an independent research team, which helps us to empower our
becoming the source of repayment. The Company is live
client with the latest market updates and facilitate investment
in SME industry-micro market cluster locations. This year,
decisions by leveraging our strength in capital market research.
the Company has also launched its Digital MSME platform
for sourcing across the value chain. The platform will be
ABW has been adjudged 'the Best Investment Research Company
enabling simplified processes & better TATs to enhance
in India 2023' by the prestigious AsiaMoney Private Banking
its presence in B2B digital platforms that are emerging
Awards. This recognition reinforces our constant endeavor
marketplaces for merchant ecosystems.
to pursue the path of excellence and build a sustainable and
rewarding relationship with our clients. The Assets under
This segment’s book increased by 31% during the year to
Administration (AUA) under ABW stands at ₹17,041 Crore as
reach ₹31,944 Crore as on 31st March 2023 from ₹24,428
on 31st March 2023.
Crore as on 31st March 2022. This segment contributed
40% to total AUM of the Company in FY2023. The average
ticket size of this segment has decreased to ₹1.76 Crore FINANCIAL PERFORMANCE
in FY2023 from ₹2.16 Crore in FY2022. The net interest income (including fee income) saw a 43%
increase y-o-y to ₹4,410 Crore in FY2023, driven by strong loan
iv) Corporates/Mid-Market: growth and expansion in net interest margin. The net interest
ABFL serves pedigreed corporate groups across sectors margin (including fees) increased by 60 basis points to 6.84%
such as Renewable Energy, Roads and Transport, in FY2023, supported by an increase in proportion of higher
Pharmaceuticals, FMCG, Automotive, Education, Specialty yielding personal, consumer and business loans and increase in
Chemicals etc. It caters to these segments with term lending rates, offset in part by a rise in borrowing costs. The cost
loans, project finance, as well as customized products such of borrowings increased by 37 basis points to 7.25% in FY2023
as structured finance. ABFL also caters to Mid-corporate despite a 250 basis points increase in repo rates. Operating
companies in focus sectors seeking customized solutions expenses increased by 50% y-o-y to ₹1,417 Crore, driven
to meet their long-term working capital requirements, by increase in branches, costs incurred towards growing the
short-term business loans, acquisition finance and other personal, consumer, micro-enterprises and SME business and
funding requirements, apart from conventional balance technology and digital-related expenses. The cost-to-income
sheet loans to operating companies. In select markets, ratio was 32.1% in FY2023. The pre-provisioning operating
ABFL also provides Developer finance to Category A/ profit increased by 40% to ₹2,994 Crore in FY2023. Credit
A+ developers. The project loan financing segment provisions increased by 38% y-o-y to ₹903 Crore in FY2023.
funds projects with ring fenced cash flows approach. The credit cost (provisions as a percentage of average advances)
In construction finance, ABFL deals with top category was 1.43% in FY2023 compared to 1.36% in FY2022. The Profit
developers having a significant track record. Before Tax increased by 41% y-o-y to ₹2,090 Crore in FY2023.
The Profit After Tax increased by 40% y-o-y to ₹1,554 Crore
The Corporate / Mid-Market segment closed FY2023 in FY2023. The Return on Assets increased by 15 basis points
with AUM of ₹24,761 Crore, registering a growth of 23% y-o-y to 2.45% and Return on Equity increased by 289 basis
over FY2022. The average ticket size of the loans had a points y-o-y to 14.76% in FY2023.

Key Financials
(` Crore)
Profit & Loss Statement FY2022 FY2023
Net Interest Income (Incl. fee Income) 3,088 4,410
Operating expenses 947 1,417
Credit provisioning 653 903
Profit before tax 1,487 2,090
Tax 379 536
Profit after tax 1,108 1,554
Total equity 9,860 11,426
(%)
Key Ratios FY2022 FY2023
Average yield (Incl. Fee Income) 11.72 12.76
Interest cost/Avg. Lending book 5.48 5.92
Net Interest Margin (Incl. Fee Income) 6.24 6.84
Opex/ Avg. Lending book 1.97 2.24
Cost-to-income Ratio 30.67 32.12
Credit Provisioning/ Avg. Lending book 1.36 1.43
ROA 2.30 2.45
ROE 11.87 14.76
Debt-to-equity 4.66 6.19
Capital Adequacy (CRAR) 21.79 16.38
Tier-1 ratio 18.07 13.92
• Positive ALM and Surplus Liquidity to enable Growth:

ABFL’s Asset Liability Management (ALM) is optimised for both liquidity and cost. As on 31st March, 2023, ABFL had an
accumulated surplus up to a one-year time frame from the ALM perspective. We raised ₹31,678 Crore long-term borrowing
during FY2023 of the total liabilities, 38% have fixed rates and 62% have floating rates of the total assets, 39% have fixed
rates and 61% have floating rates. Our long-term funding facilities were rated AAA and short-term funding facilities were
rated A1+ by India Ratings, ICRA and Care Ratings. In terms of liquidity, there is significant availability to meet obligations,
even under severe stress conditions.
Well matched ALM and diversified borrowing mix

(%)
100 100
81 82
Cumulative Outflows
Cumulative inflows 44
36
18 20 23 28
9 14 17
6
0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 years > 5 years
Cumulative Surplus/ (Gap)
49% 24% 17% 22% 22% 0% 0%

Funding Mix (%) Asset Liability Mix (%)
9 7
3 Floating
5 9 Fixed
7
62% 61%
Mar’22 46 Mar’23 53
28
33 38% 39%
Term Loan NCD CP ECB CC/WCDL Liability Asset
− Long-term funding facilities rated AAA & Short-term funding the cost of borrowing in a rising interest rate environment.
facilities rated A1+ by ICRA/India Ratings/CARE The cost of borrowing has increased by 37 basis points
to 7.25% in FY23 despite a 250 basis points increase in
− Raised LT borrowing of ₹31,678 Crore in FY2023
repo rates.
− Maintained comfortable Capital Adequacy (CRAR) at 16.4% • Capital Adequacy Ratio (CAR): As on 31st March 2023,
and Tier 1 ratio of 13.9% the Capital Adequacy Ratio for the Company was 16.38%
• Total Equity: The Total Equity of the Company expanded (previous year 21.77%) against a minimum of 15% as
by 16% Y-o-Y to ₹ 11,426 Crore as on 31st March 2023 required by RBI. The Tier I capital of the Company was
against ₹9,860 Crore as at 31st March 2022. Total borrowing 13.92% (previous year 18.07%) and Tier II capital was 2.46%
outstanding at amortized cost on at 31st March 2023 was (previous year 3.70%).
₹70,771 Crore (previous year ₹45,986 Crore). Being a Non- • Rating: Long-term funding facilities of the company are
deposit taking NBFC, the Company has not raised any fixed rated AAA and short-term funding facilities are rated A1+
deposits from the public. by ICRA, CARE and India Ratings. These ratings depict the
• Cost of Borrowing: ABFL has strong funding access with confidence that the company has earned by its sound financial
well diversified sources which has helped ABFL to manage management and timely repayment of financial obligations.
STAGE-WISE ASSETS AND ECL PROVISIONING (%) (ON LOAN BOOK)

Gross Stage 2 loans declined by 269 basis points to 2.72% as on 31st March 2023. Gross Stage 3 loans declined by 46 basis
points to 3.12% as on 31st March 2023. The provision coverage on Gross Stage 3 loans increased from 39.5% as on 31st March
2022 to 46.2% as on 31st March 2023.
Mar 31, 2022 Mar 31, 2023

Particulars
% ₹ Crore % ₹ Crore
Stage 1 91.02% 49,770 94.16% 75,758
Stage 2 5.41% 2,956 2.72% 2,187
Stage 3 3.58% 1,956 3.12% 2,507
Stage 2 and 3 8.98% 4,912 5.84% 4,695
Total Loan book 100% 54,682 100% 80,452
Stage 3 PCR 39.5% 46.2%

he growth of the loan book has been accompanied by strong

T operations control, fraud control, collection processes and
credit appraisal and risk management practices, which have remedial management procedures. For each product, programs
helped the Company deliver stable risk-adjusted returns, defining customer segments, underwriting standards, security
improve the quality of its book. Approximately 64% of ABFL’s structures, etc. are specified to ensure consistency of credit
loan book is secured as of March 2023, including 4% covered patterns. Proposals are approved at different levels based on
by government guarantee schemes. defined delegations of authority.
OPPORTUNITIES AND THREATS FOR THE COMPANY A robust collection infrastructure is core to ABFL’s lending
business. It has strengthened the collection capabilities by
Opportunities setting up dedicated collection teams for specific segments.
• Under-penetration of formal financial services in India
providing opportunity to expand to smaller towns with a
focus on lending to MSME & self-employed segments
INTERNAL CONTROL SYSTEMS AND THEIR
• Use of digital technologies and data to offer new products to
ADEQUACY
leverage relationships with existing customers and increase The Company has adequate internal controls, systems and
revenue per customer procedures across all lines of business and support functions,
commensurate with the complexity and nature of its business
• Evolution of FinTech ecosystem with niche technological
operations. The controls ensure that all assets are safeguarded
platforms and customer segments
and protected against loss from unauthorized use or disposition
and that the transactions are authorized, recorded and reported
Threats correctly. The Company’s management functions undergo
• Impact of ongoing geopolitical conflicts, rising inflation an independent internal audit basis the scope and calendar
and increasing interest rates on portfolio credit quality, approved by the Audit Committee of the Board. The Company’s
profitability and industry growth controls over its business operations are managed effectively by
instituting well-defined policies and procedures and adequate
RISKS MANAGEMENT FRAMEWORK supervision and reviews to ensure that the internal control
The Company’s risk management philosophy involves systems are adequate to protect the Company against any loss
developing and maintaining a strong credit portfolio within its or misuse of the Company’s assets.
risk appetite and the regulatory framework. While it is exposed
to various types of risks, the most important among them are MATERIAL DEVELOPMENTS IN HUMAN RESOURCES
credit risk, market risk (which includes liquidity risk and price (HR)
risk) and operational risk. The measurement, monitoring and
Your Company has always aspired to be an organization and
management of risks remains a key focus area for the Company.
a workplace which attracts, retains and provides a canvas for
talent to operate. The Company’s vision to be a leader and a
The Company’s risk management strategy is based on a clear
role model and a culture that is purpose driven gives meaning
understanding of various risks, disciplined risk assessment,
to our people.
measurement and mitigation procedures and continuous
monitoring. The policies and procedures established for this
We believe that meaning at work is created when people relate
purpose are continuously benchmarked against best practices
to the purpose of the organization, feel connected to their
in the market.
leaders and have a sense of belonging. Our focus stays strong
on providing our people a work environment that welcomes
For credit risk assessment, specific policies and processes
diversity, nurtures positive relationships, provides challenging
are in place, separately for each segment that the Company
work assignments and provides opportunities based on
operates in. Management of credit risk is carried out through
meritocracy for people to grow and build their careers with us
credit policy definition, portfolio diversification, appraisal and
in line with their aspirations.
approval processes, internal ratings, post sanction monitoring,

TALENT MANAGEMENT We believe that focusing on employee health and wellbeing

results in a happier workforce which further creates a positive
Building a strong future ready talent pool and robust leadership
impact on customer satisfaction and retention. Our framework
succession pipeline continue to be priority areas for us in Talent
focuses on Integrated and Holistic Wellbeing covering not just
Management. We have immense focus on creating well rounded
the Physical Wellbeing of employees but also Emotional or
leaders who are passionate about value creation for customers
Mental Wellbeing, Financial Wellbeing, Intellectual Wellbeing
and execution excellence. Leaders across businesses will
and Social Wellbeing. We have also empaneled doctors and
continue to play a pivotal role in ABC’s transformation journey
counsellors to provide preliminary medical consultations in our
and drive the achievement of ABC’s strategic goals. This will
corporate offices and on-call consultations for our employees
require them to think in new ways, enhance functional leadership
and their families in emergency cases. In FY2023 the employee
and build their teams for the future.
integrated wellness program managed by our Health Insurance
• FY2023, we initiated the top team effectiveness intervention was extended to all employees and special attention in the form
with the top leadership team with an objective to drive of health coaching was given to those in the high-risk category
alignment and cascade a culture of collaboration across to help them understand their health condition, take assisted
all levels. help to improve health and sustain it. Employee health and
• 50% of our senior leaders have undergone a bespoke well-being campaigns were driven by running wellness carnival
comprehensive leadership development journey curated in wherein exhaustive Health Assessment drives were deployed
partnership with Harvard Business Publishing. across ABFL branches, encouraging employees to participate
in health checkups. Enabling our employees to regularly check
• 87 members from our talent pool in middle management
their health and wellness levels we organized multiple health
were covered either in our flagship leadership development
camps covering Bone density check-ups, Body composition
program or development centers to prepare them to
analysis, Yoga sessions at work, Nutritional counselling, Breast
take on larger roles and create a succession pipeline for
Health check-ups and awareness drives and many more.
the organization.
• 265 employees across levels moved into new/larger roles Lastly, Preventive annual health check-ups are our way of
helping them advance in their career in the past 2 years. monitoring and ensuring a physically fit workforce. We have
partnered with diagnostic centers across the country that
Additionally, focus on building future ready skills in the areas enable a seamless experience for our employees.
of Digital, Technology, Risk and Analytics has been ongoing
for last year. Through various initiatives and partnerships with Learning
global organizations, we have continued our focus on building
Our Company’s philosophy is to provide every employee
skills in these areas.
with continuous opportunities to learn & grow. Our learning
interventions create an organization wide impact as these are
Employee Wellness and Engagement focused on enabling employees to do better at work.
Our endeavor to provide our employees diverse and engaging
ecosystem continued this year. This FY we concentrated on An AI enabled learning app provides employees easy access to
Holistic Employee Wellbeing – ABC People Agenda FY2024. To super personalized content that meets their unique individual
get insights on health risks if any, for employees we focused requirements, employees leveraged these resources to enhance
on providing physical and digital wellness ecosystem to protect their skills and knowledge.
employees’ 360-degree wellbeing needs.
The Functional L&D team during FY2023 focused on (i) FLS
Revitalizing a culture of connect and camaraderie has been yet productivity; (ii) New joinee activation; and (iii) Workforce
another area of significant attention for us. Bringing people capability building across Sales and Non-Sales functions.
together through events, townhalls, leadership connect
sessions and celebration of milestones enabled this. Through launch of the industry-first initiative of Pre-Joining
Functional Induction, we managed to achieve a 62%
At Aditya Birla Finance Limited (ABFL), we consider employee improvement in the 90-day performance of new joinees,
health and wellbeing to be a non-negotiable proposition. along with ensuring prompt alignment with the Values, Code

of Conduct and Governance mechanisms of ABC, thereby were deployed to enhance customer centric behaviors, 90%
achieving faster cultural integration of the retail sales employees in customer and operations team were covered
workforce. The Credit Risk Master Class and Retail Credit through this program. While self-paced learning is available
Certification programs ensured building up the credit risk 24x7x365, other focus areas of self development were built
underwriting strength of the organization, to provide support around the ABG competency framework enabling employees
to the burgeoning retail expansion as well as the fast-growing to enhance their skills on personal effectiveness.
mortgage book. 97% of entire credit workforce was covered,
in collaboration with CRISIL, and 73% got certified at Platinum With 3,000+ E Learning courses, 25K+ video-based modules
Badge level, issued by CRISIL after a stringent evaluation. In line and 2K+ micro-learning modules and 1.4K Sustainability
with strengthening the organizational muscle across the loan courses our employees have the flexibility to learn anytime and
process cycle and customer life cycle, we also completed two from anywhere.
key initiatives for Operations/Customer Service and Collections
teams. The License-to-Operate certification, comprising of Diversity, Equity and Inclusion (DEI)
training module as well as an evaluation, mandatory for all Ops With more than 323 branches spread across locations, diversity
team members, was rolled out for internal Ops teams as well and inclusiveness is built into the way we do business. At ABFL
as the outsourced RPC (Regional Processing Center) teams to diversity is not only limited to women but also is defined as
ensure accuracy in processing and reduced re-work. The Raise- being respectful and open to new ideas and what employees
The-Bar program for Collections was a multi-stage skill-builder bring on the table. In FY2023 DEI at ABFL the focus was around
initiative, aimed at enabling the Collections team to effectively infusing women across the organization, developing and fast-
convince the customers to repay their due accounts, and tracking women to leadership roles and creating continuous
ensuring absolute adherence to the RBI Fair Practice Code and engagement as well as communication around benefits &
all regulatory guidelines. The team also revamped the learning flexi-policies that the organizational ecosystem has to offer
tech infrastructure, phasing out the 6-year-old K-Cart LMS for women employees. This is aligned to the ABG purpose,
(Learning Management System) and deploying the ABCapital vision and values.
App, which is a mobile-first LMS.
Aditya Birla Capital was awarded as one of the 2022 Best
Behavioral Learning & Culture Building Companies for Women in India by Avatar.
Behavioral Learning focused on 3 aspects of capability building-
ABG Values and Culture cascade; Managerial Capability and Given our philosophy on hiring, promotion and succession being
Self-development. Every year, we invest in interventions to a matter of competence rather than gender, out of the total
sustain and reinforce the culture around our values, through hired employees in FY2023, 11% were women with close to
surveys and other mechanisms. In FY2023, Culture Onboarding 61% women hired were in sales, credit and collections. Special
was one of the key focus areas for the organization amidst focus was to infuse women in departments like collections
the organizational expansion and transition. More than 1,356 which is a novel initiative across industry.
employees went through the “Vitamin V-alues” program that
was curated to cascade ABG Group purpose and values & 12% women were given role movements over last 2 years
Communication across branches and corporate offices and it across levels.
continues to be one of the core onboarding programs. More than
2,434 employees went through behavioral training interventions In FY2023, Aditya Birla Capital launched the “Celebrate
and more than 1,128 employees participated in more than 2 Motherhood” program which is aligned with our purpose to
programs throughout the year. Managerial capability building provide an amicable support system to our women employees
continued to be a critical aspect to equip young managers who are mothers to be and new mothers. It offers them an
to lead teams effectively, enhance understanding of critical enriched experience throughout the most critical journey of
people processes and engage to develop. The Transcend their life called Motherhood. The program design enables
program ensured all first-time managers in junior management the women employees with an engaging “Stay in Touch”
cadre went through extensive development journey to build and “Return-To-Work” elements for them to reintegrate their
managerial capabilities. Apart from this, specific behavioral personal and professional commitments. At ABFL, we are
interventions with Operations and Customer services teams committed towards employee care and well-being. As a part of

the program, a benefit for Women employees requiring a crèche FY2024 – WAY FORWARD AND OUTLOOK
or Nanny Services was extended to all women, so that they can
Outlook
focus on their work and achieve their career aspiration without
compromising on childcare. Crèche facility is an extension of The credit demand is expected to grow with reducing uncertainty
statutory provisions with an intention of benefiting women and investment traction going forward. Credit growth of
employees at work. NBFCs is expected to be driven by rising retail consumerism,
formalisation of MSMEs, increasing financial penetration and
This program offers a combination of benefits that enable women investment focus on India's manufacturing sector.
with support and guidance during pregnancy and facilitates a
seamless transition once they resume work. The features are ABFL will focus on building a granular franchise and lending to
spread across 4 phases of Motherhood Journey- Prenatal to retail, SME and HNI customers. In the business loans segment,
Post-natal phase and then to returnity to work phase. differentiated offerings for MSMEs and will leverage Udyog
Plus platform to acquire new customers, tap into the ABG
At ABFL this benefit was extensively leveraged by 8.7% women ecosystem, focus on ecommerce partnerships and integrate
employees, wherein they opted for Creche or Nanny Policy with public infrastructures such as OCEN and ONDC to grow
benefits. In addition to the above, exclusive policy awareness the loan portfolio. In the personal and consumer loan segment,
training modules were imparted specifically curated for women ABFL will deep-mine the existing customer base acquired
employees across all levels every quarter. These training modules through digital ecosystems using analytics and drive cross-
were designed to create awareness and communicate all the selling and upsell through scorecard-based Straight Through
flexi benefits available for women and the career development Process (STP) journeys. Through tie-ups with new partners,
opportunities within the organization. ABFL plans, to diversify its digital ecosystem sourcing mix in
personal loans and aims to introduce new products such as
education loans and two-wheeler loans to increase the wallet
share among customers.
Way forward
Personal and consumer loans Business loans Distribution network

• Deep mine existing customer base • Scale up Udyog Plus - A • Focus on increasing branches in Tier
acquired through digital ecosystems differentiated B2B digital platform 3/4 cities
using analytics and increase cross- for MSME ecosystem • Build direct to customer for self-
sell • Differentiated offerings with digitally employed segment
• Scorecard based STP journeys with assisted assessed income program • Direct to Corporate Channel for
zero human interventions and STPs, scorecard journeys for Personal Loans distribution done
• Increase share of emerging salaried small ticket loans end-to-end digitally
segment in personal loans • Enhance fee income opportunity • Leveraging ABG/ABC ecosystem
• Tie up with new partners to diversify through new products and digital synergies across product segments
digital ecosystem sourcing mix in delivery channels
personal loans • Integrate with ONDC & OCEN
• Increasing wallet share through new infrastructure and partner with
products launch such as Education E-commerce players
Loans and 2W Loans

CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis describing the Company’s plan and objectives, financial conditions,
business prospects, estimates and expectations may be forward looking statements which are based on the current belief,
assumptions, projections of the Directors and the management of the Company. These statements do not guarantee the future
performance and are subject to known and unknown risks, uncertainties, and other factors some of which may be beyond
the control of the Company. Actual results may differ substantially or materially from those expressed or implied. Important
developments that could affect the Company’s operations include unavailability of finance at competitive rates, significant
changes in political and economic environment in India or key markets abroad, tax laws, litigations, exchange rate fluctuations,
interest and other costs.

Board’s Report
Dear Members,
The Board of Directors of Aditya Birla Finance Limited (“your Company” or “the Company” or “ABFL”) is pleased to present
the 32nd (Thirty Second) Annual Report and the Audited Financial Statements (Standalone) of the Company for the financial year
ended 31st March 2023 (“financial year under review”).
FINANCIAL SUMMARY AND HIGHLIGHTS

The Company’s financial performance for the financial year ended 31st March 2023 as compared to the previous financial year
ended 31st March 2022 is summarised below:
(₹ in Crore)
Year ended Year ended
Particulars
31st March 2023 31st March 2022
Total Income 8,268 5,797
Less: Finance cost 3,857 2,709
Net Interest Income 4,411 3,088
Less: Total Operating Expenses 1,417 947
Pre provision Operating Profit 2,994 2,141
Less: Impairment on financial instruments 904 654
Profit before Tax 2,090 1,487
Less: Tax expenses 536 379
Profit after Tax 1,554 1,108
Add: Other comprehensive income (net of tax) 7 24
Total comprehensive income (net of tax) 1,561 1,132
Transfer to Special Reserve 311 244
The above is an extract from the Standalone Financial Statements year with a growth of 43%, primarily led by growth in
prepared in accordance with Indian Accounting Standards (“IND the lending book.
AS”) as notified under Sections 129 and 133 of the Companies • The Net Interest Income grew by 43% to ₹4,411 Crore
Act, 2013 (“the Act”) read with the Companies (Accounts) Rules, from ₹3,088 Crore in the previous year. This was again
2014 and other relevant provisions of the Act and the Securities primarily led by growth in the lending book along with
and Exchange Board of India (Listing Obligations and Disclosure an increase in margins by 10%.
Requirements) Regulations, 2015 (“SEBI Listing Regulations”).
• The operating expenses grew by 50% to ₹1,417 Crore
from ₹947 Crore primarily driven by expansion in branch
The financial statements of the Company are consolidated
network and related employee costs.
with that of Aditya Birla Capital Limited (“ABCL”), the Holding
Company which has adopted Ind-AS. The Company has also • The provisions for impairment of financial instruments
prepared the financial statements in Ind-AS Fair Value format grew by 38% to ₹903 Crore from ₹654 Crore in the
which are consolidated with ABCL for further consolidation with previous year.
Grasim Industries Limited (ultimate Holding Company). • Operating profit for the year grew by 40% to ₹2,994
Crore from ₹2,141 Crore in the previous year.
RESULTS OF OPERATIONS AND THE STATE OF • With the combination of factors mentioned above, both
COMPANY’S AFFAIRS profit before tax and profit after tax increased by 40%
to ₹2,090 Crore from ₹1,487 Crore and to ₹1,554 Crore
Highlights of the Company’s performance for the financial from ₹1,108 Crore, respectively.
year ended 31st March 2023 are as under:
a) Key Highlights
• During the year under review, the total income ended
at ₹8,268 Crore as against ₹5,797 Crore in the previous

b) Business
In addition to the wealth management solutions, the Company offers lending/financing through the following products offerings:
Segment Personal & Consumer Unsecured Business Secured Business Corporate / Mid-Market
Presence Semi-urban Semi-urban Semi-urban/ SME Clusters Top 6-7 Cities
Salaried Professionals with Business owners & Self Business owners & Self Pedigreed Group Corporates/
focus on emerging income employed professionals employed professionals Midmarket Cos in focus
segment engaged in small/mid sized engaged in small/mid sized sectors/Cat A/A+ developers
businesses businesses
Products
Personal Loans Business Loans Loan Against Property Capex/WC Funding

Consumer Loans Supply Chain Finance Working Capital Loans Structured Finance
Check-out Financing B2B Digital Platform Micro - LAP Developer Financing
Credit Card Business Overdraft Loan Against Securities Project Finance
The detailed segment wise performance results are provided in the Management Discussion & Analysis report.
c) Portfolio quality RESOURCE MOBILISATION

During FY23, focused expansion in the retail, SME and During the year, the Company has been able to raise Long
HNI segments resulted in growth of 57% in this segment Term money of ₹31,679 Crore (Term Loans of ₹23,828 Crore
contributing to 67% of your Company’s Assets under from Banks, External Commercial Borrowing of ₹931 Crore and
management (AUM). During the financial year, the ₹6,920 Crore through Debentures). The External Commercial
Company also enhanced its footprint to 323 branches with Borrowings consisted of USD 50 million from Export
a focus on increasing branches in Tier 3 & 4 cities. During Development Canada and refinanced External Commercial
this period, the Company further improved the portfolio Borrowing of JPY 8,389.35 million. The Company primarily
quality through strengthening of credit underwriting and sources funds through Banks (Term Loans, WCDL/Cash Credit)
enhancement of its collection capabilities. and Debt markets (Non-Convertible Debentures (NCDs), Sub-
ordinated debt, Perpetual debt and Commercial Paper (CP)).
Gross Stage 2 book was at ₹2,187 Crore (2.72 %) as on The outstanding debt (amortized) as on 31st March 2023
31st March 2023 as compared to ₹2,956 Crore (5.41 %) was ₹70,776 Crore as compared to ₹46,052 Crore as on 31st
in the previous year. Further, the Gross Stage 3 book March 2022.
was at ₹2,507 Crore (3.12 %) as on 31st March 2023 as
against ₹1,956 Crore in the previous year, improving the As per RBI mandate, from 1st December 2022, the Company has
combined Gross Stage 2 & 3 to 5.84% from 8.98% in been maintaining liquidity of 70% in the form of High Quality
the previous year. The provision coverage ratio (PCR) for Liquid Asset (HQLA) i.e. Government securities, T-Bill, Cash, etc.
Stage 3 assets was increased to 46.2% (₹1,158 Crore)
in FY23 from 39.5% (₹773 Crore) in FY22. Consequently, The Company carries out periodic stress testing on the cash flow
the Net Stage 3 book was at ₹1,349 Crore (1.67 %) as position to determine the liquidity buffer and plan for additional
on 31st March 2023 as against ₹1,183 Crore (2.16 %) in bank lines. The Company continues to focus on diversifying
the previous year. Restructured assets at ₹1,148 Crore its funding sources. Bringing in new investors/lenders helps
comprised 1.4% of loan book as on 31st March 2023. in widening the pool of funds that the Company can tap into.
A wider range of investors removes the dependency on few
players for funds, helps in optimum pricing and reduces the
overall cost of borrowing.

Board’s Report (Contd.)
ACCOUNTING METHOD Subsidiary Company

The Standalone Financial Statements of the Company have The Company doesn’t have any Subsidiary Company.
been prepared in accordance with Indian Accounting Standards
as notified under Sections 129 and 133 of the Act read with Joint Venture/Associate Company
the Companies (Accounts) Rules, 2014, as amended and other As per the provisions of the Act, the Company did not have
relevant provisions of the Act. any Joint Ventures/ Associates during the financial year
under review.
In accordance with the provisions of the Act, applicable
Accounting Standards, the SEBI Listing Regulations, the
Audited Standalone Financial Statements of the Company
TRANSFER TO RESERVE
for the financial year ended 31st March 2023, together with For the financial year ended 31st March 2023 an amount of
the Auditors’ Report forms part of this Annual Report. The ₹311 Crore was transferred to Special Reserve in terms of
Audited Financial Statements of the Company as stated Section 45-IC of the Reserve Bank of India Act, 1934.
above are available on the Company’s website at https://abfl.
adityabirlacapital.com DIVIDEND
The Directors do not recommend any dividend for the financial
MATERIAL EVENTS DURING THE YEAR year under review.
There were no material events during the year under review
other than events covered under the RBI Regulations section. SHARE CAPITAL
As on 31st March 2023, the Company’s paid-up Equity Share
DETAILS OF HOLDING COMPANY/SUBSIDIARIES/ Capital was ₹6,62,10,08,220 divided into 66,21,00,822 Equity
JOINT VENTURES/ASSOCIATES Shares of ₹10 each.
Holding Company Due to healthy CRAR and adequate capital being available, there
During the financial year under review, Grasim Industries Limited was no capital infusion during the year in the Company.
remains the ultimate Holding Company and Aditya Birla Capital
Limited continues to be the Holding Company of the Company.
Grasim Industries Limited and Aditya Birla Capital Limited are
DEPOSITORY
listed at BSE Limited, National Stock Exchange of India Limited As on 31st March 2023, out of the Company’s total paid-
and Luxembourg Stock Exchange. As per clause 16(c) of the up Equity Share Capital comprising of 66,21,00,822 Equity
SEBI Listing Regulations, the Company is considered as a Shares, 66,21,00,796 Equity Shares (99.99%) were held in
Material Subsidiary Company of Aditya Birla Capital Limited. dematerialized mode.
CREDIT RATING
The credit ratings enjoyed by the Company from various rating agencies as on 31st March 2023 is detailed below:
(₹ in Crore)
Rated India Rated Rated

Facility ICRA CARE
Amount Rating Amount Amount
Commercial Paper ICRA A1+ 15,000.00 IND A1+ 15,000.00 NA -

Non-Convertible ICRA AAA Stable 28,686.40 IND AAA, (Stable) 30,906.60 NA -
Debentures (NCD)
Subordinate Bonds ICRA AAA Stable 2,500.00 IND AAA, (Stable) 2,150.00 CARE AAA, 195
(Stable)

(₹ in Crore)
Rated India Rated Rated

Facility ICRA CARE
Amount Rating Amount Amount
Market Linked Debentures NA NA IND PP-MLD AAA 1,523.33 NA -

Stable
Bank Lines ICRA A1+/ICRA 50,000.00 IND AAA, (Stable) 50,000.00 NA -
AAA Stable
Perpetual Debt ICRA AA+ Stable 700.00 IND AA+, (Stable) 700.00 NA -
NCD - Public Issue ICRA AAA Stable 5,000.00 IND AAA, (Stable) 5,000.00 NA -
NCD - Unsecured ICRA AAA Stable 1,500.00 NA - NA -
All the above ratings indicate a high degree of safety with regard • With a view to encourage our employees to choose
to timely payment of interest and principal. There has been environmentally friendly modes of commute, your Company
no revision in any of the above credit ratings during the year is providing concessions to employees purchasing hybrid/
under review. electric vehicles.
• The Company is associated with ViaGreen, an organization
PUBLIC DEPOSITS that helps in waste management and recycling.
The Company being a Non-deposit taking Systemically • Most of the offices of the Company have installed LED
Important Non-Banking Finance Company has not accepted lights making them very energy efficient. Further, rooftop
or renewed any deposit from the public during the financial year solar panels are installed at its Bengaluru, Noida and Pune
under review in accordance with Section 73 of the Act read with offices. Similar renewable energy installations in other office
the Companies (Acceptance of Deposits) Rules, 2014. buildings will be taken up in future.
• As a step towards further reducing the environmental
PARTICULARS OF LOANS GIVEN, INVESTMENT impact, the documents for Board and Committee meetings
MADE, GUARANTEES GIVEN OR SECURITY PROVIDED are transmitted electronically using a secure web-based
application, thereby saving paper.
Pursuant to provisions of Section 186 (11) of the Act, the
Company being a Non-Banking Finance Company registered • The energy saving measures also include selecting and
with the RBI and engaged in the business of giving loans, is designing offices to facilitate maximum natural light
exempted from the provisions of the said Section. Thus, the utilisation, video-conferencing facilities across all offices
provisions of Section 186 except sub-section (1) of the Act are to reduce the need of employee travel, digital learning
not applicable to the Company. initiatives for employees, optimised usage of lights and
continuous monitoring and control of the operations of the
air conditioning equipment as well as elimination of non-
CONSERVATION OF ENERGY & TECHNOLOGY recyclable plastic in offices.
ABSORPTION
As the Company is a Non-Banking Financial Company engaged FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
in the business of giving loans, the particulars regarding
There were no foreign exchange earnings during the financial
conservation of energy and technology absorption as required
year under review as well as during the previous financial year.
to be disclosed pursuant to provision of Section 134(3)(m) of
However, the foreign exchange outgo during the financial year
the Act read with Rule 8(3) of the Companies (Accounts) Rules,
under review was ₹81 Crore as compared to ₹118 Crore, during
2014 are not relevant to its activities.
the previous financial year.
However, some of the steps taken by the Company for

conservation of energy include: PARTICULARS OF EMPLOYEES
Disclosures pertaining to remuneration and other details, as
• The Company is committed to reducing negative
required under Section 197(12) of the Act, read with Rule 5(1)
environmental impact.

of the Companies (Appointment and Remuneration of Managerial The ABFL Scheme 2022 is in compliance with the Companies
Personnel) Rules, 2014, are attached in Annexure I of this Report. Act, 2013 (“Act”) read along with Rule 12 of the Companies
(Share Capital and Debentures) Rules, 2014 and such other
Details as required under Section 197(12) of the Act, read applicable provisions. During the year under review 21,88,875
with Rules 5(2) and 5(3) of the Companies (Appointment and options were granted to various employees of the Company.
Remuneration of Managerial Personnel) Rules, 2014, with The disclosure under Rule 12 of the Companies (Share Capital
respect to information of employees of the Company will be & Debentures) Rules, 2014 is as under:
provided upon request by a Member. In terms of the provisions Sr. As on
Features
of Section 136(1) of the Act, the Report and Accounts, as No. March 31, 2023
set out therein, are being sent to all the Members of the 1. Options Granted 21,88,875
Company, excluding the aforesaid Annexure which is available 2. Options Vested Nil
for inspection by the Members at the Registered Office of the 3. Options Exercised Nil
Company during business hours on all working days of the 4. The total number of shares arising as a result NA
Company up to the date of the Annual General Meeting. If any of exercise of option
Member is interested in obtaining a copy thereof, the Member 5. Options Lapsed 89,786
may write to the Company Secretary at the Registered Office 6. Exercise Price 283.2
of the Company in this regard. 7. Variation of terms of options Nil
8. Money realized by exercise of options NA
MATERIAL CHANGES AND COMMITMENT AFFECTING 9. Total number of options in force 20,99,089
10. Employee wise details of options granted to:
FINANCIAL POSITION
a) Key Managerial Personnel 4,58,487
There were no material changes and commitments affecting the
b) any other employee who receives a grant Nil
financial position of the Company from the end of the financial of options in any one year of option
year up to the date of this Report. amounting to five percent or more of
options granted during that year.
c) identified employees who were granted Nil
CHANGE IN NATURE OF BUSINESS option, during any one year, equal to or
During the year under review, there has been no change in the exceeding one percent of the issued
nature of business of the Company. capital (excluding outstanding warrants
and conversions) of the company at the
time of grant
EMPLOYEE STOCK OPTION
Employee Stock Options have been recognized as an effective ABCL has also formulated “Aditya Birla Capital Limited
instrument to attract talent and align the interest of employees Employee Stock Option Scheme 2017” (“Scheme 2017”) for
with that of the Company, thereby providing an opportunity the employees of the Company. The shareholders of ABCL, vide
to the employees to share in the growth of the Company, to their resolution passed on 19th July 2017 had also extended the
create long term wealth in the hands of employees and act as benefits and coverage of the Scheme 2017 to the employees of
a retention tool. its Subsidiary Companies. The shareholders of the Company at
its meeting held on 9th August 2017 had approved the extension
Pursuant to the approval of the shareholders of the Company of benefits of the Scheme 2017 to the permanent employees
at its Extra-Ordinary General Meeting held on 4th October in the management cadre of the Company.
2022, the Company has adopted “Aditya Birla Finance Limited
Employee Stock Option Scheme 2022” (“ABFL Scheme 2022”) The shareholders of Aditya Birla Capital Limited (ABCL), vide
for the benefit of the employees of the Company and to the their resolution passed on 16th October 2022, has adopted
employees of present or future holding and/or subsidiary “Aditya Birla Capital Limited Employee Stock Option and
company(ies) of the Company. Performance Stock Unit Scheme 2022” (“Scheme 2022”) and
extended the benefits of the Scheme 2022 to the employees

of its Subsidiary Companies. The shareholders of the Company The Company faces potential risks, which can be classified as
at its meeting held on 7th November 2022 had approved the credit risk, liquidity risk, operational risk, market risk and IT risk.
extension of benefits of the Scheme 2022 to the permanent Creating awareness of the risks faced by the organization is,
employees in the management cadre of the Company. we believe, an important way to manage risk and accordingly,
the Company makes all efforts to create an environment of risk
MANAGEMENT DISCUSSION AND ANALYSIS awareness at all levels.
Management Discussion and Analysis Report for the financial
The Company has policies and procedures in place to identify,
year under review, prepared as per requirements of RBI’s Non-
measure, assess, monitor, and manage these risks systematically
Banking Financial Company - Systemically Important Non-
across all its lines of business. The Company continually upgrades
Deposit taking Company and Deposit taking Company (Reserve
necessary security measures, including cybersecurity measures,
Bank) Directions, 2016, is presented as a separate section,
to ensure mitigation of cyber threats and risks.
which forms part of this Annual Report.
Risk management in ABFL is an independent function, in the

REPORT ON CORPORATE GOVERNANCE context of separation of roles of credit origination (duty cast on
The Company is committed to maintaining the highest the business functions) and evaluation and assessment (duty
standards of Corporate Governance and adhering to the cast on the credit risk function) to ensure the independence
Corporate Governance requirements set out by the Act, RBI of risk measurement, monitoring and control functions. This
and SEBI Listing Regulations. Corporate Governance principles framework also enables business units at the operating level,
form an integral part of the core values of the Company. Report with the use of technology, to identify opportunities to lend
on Corporate Governance for the year under review is presented, which fall within the risk appetite of the Company.
separately, which forms part of this Annual Report.
The various risks across the Company are monitored and reviewed
RISK MANAGEMENT through the Risk Management Committee of the Board (RMC)
– the apex body for risk management and the Executive Level
Risk Management is at the core of our business and ensuring we
Committees, which meet periodically. Some of the Executive
have the right risk-return trade-off in line with our risk appetite
Level Committees are the Asset Liability Committee (managing
is the essence of our risk management while looking to optimize
the liquidity risk and interest rate risk), Credit Committees
the returns that go with that risk. The Company has a robust
and Investment Committees (to approve credit proposals and
Risk Management framework which proactively addresses risks
investment proposals), Product Approval Committee (to approve
while looking to optimize the returns that go with that risk.
any new product being offered), Operational Risk Management
Committee (to identify, measure and monitor operational risks
The Board has constituted a Risk Management Committee as
required under Regulation 21 of the SEBI Listing Regulations in the business) and IT Strategy & Information Security Steering
and RBI Master Directions to frame, implement and monitor Committee (to oversee the robustness of the IT systems and
the risk management plan of the Company. The objectives and policies to manage cyber threats).
scope of the Risk Management Committee broadly include:
risk identification; risk assessment; risk response & risk Credit Committees not only approve counter-party credit
management strategy and risk monitoring, communication and exposures in line with the delegation of authority assigned
reporting with the objective to contain the negative impact of by the Board of Directors, but also focus on post sanction
unmitigated risks on profitability and capital. The Company is monitoring. These Committees also review the credit
exposed to various risks that are inherent to lending business. portfolios, non-performing loans, accounts under watch, over
dues and incremental sanctions on an on-going basis.
Over the years, the Company has built a strong Risk
Management Framework supported by well-established policies The Audit Committee of the Board provides directions to and
and procedures and a talented pool of Risk Professionals. The monitors the quality of the internal audit function and controls
Company was able to face the unprecedented challenges faced and also monitors compliance with observation reports of RBI,
in the previous few years and emerged stronger during these other regulators and internal & statutory auditors.
turbulent times due to some of these policies and framework.

1. Credit Risk - ABFL has put in place robust credit appraisal, ABFL during the financial year ended 31st March 2023,
assessment and approval frameworks in place for conducted online training to enhance the awareness of
identification, measurement, monitoring and controlling operational risk.
risks embedded in the business of taking credit exposures.
4. Liquidity Risk - ABFL has sharpened its liquidity risk
ABFL has an early warning monitoring mechanism to management framework. Efficient management of Assets
facilitate early identification of stress and mitigation and Liabilities (ALM) is vital for sustainable growth of
thereof. The Company through its Risk Policy & Monitoring business for the Company. ALCO monitors the ALM position
unit tracks all key components like Key financial indicators, at monthly intervals and strives to proactively review
covenants and documentation. An escalation matrix is built the market dynamics, capturing the signals emanating
in to enable continuous monitoring and timely resolution. from there and assessing the regulatory requirements to
The Risk Monitoring unit tracks the entire credit portfolio ensure stakeholder value creation. The ALCO also monitors
across all segments, including monitoring of early warning the contractual repayments of liabilities and actuarial
signals, identifies portfolio trends and generates portfolio repayment of the loans and advances to arrive at the
level MIS, covering various credit quality indicators. Further, bucket level gap between inflows and outflows.
it independently reviews credit policies and programs.
5. raud Risk - Risks associated with frauds are mitigated
F
2. Market Risk - Market risk is managed through a through a Risk Control Unit (RCU). RCU reviews matters
comprehensive Board-approved Investment Policy. The relating to fraud risk through review of cases which are
Company maintains an investment book of Fixed Income entered in the system. Various fraud control management
Instruments, mostly Corporate Bonds/PSU Bonds and activities like document sampling, property visit,
is managed through the investment policy which caps verification of stock statement, vendor profile check,
exposure to various securities through stringent trading customer profile check etc. are established.
risk limits/triggers, concentration risks and Mark to
Market thresholds. BUSINESS CONTINUITY
Your Company has a well-documented Business Continuity
3. Operational Risk - Operational Risk is the risk of loss
Management Programme which has been designed to ensure
resulting from inadequate or failed internal processes,
continuity of critical processes during any disruption. A robust
people and systems or external events. While ultimate
Disaster Recovery framework has been put in place to manage
responsibility for ORM lies with the Board, the Board has
business and technology interruption risk, ensure uninterrupted
delegated this responsibility to the Risk Management
operations and service to customers. Your Company also has
Committee of the Board (RMC). A dedicated Operational
a Business Continuity Policy to have a planned response in
Risk Management Committee (ORMC) maintains oversight
the event of any contingency, ensuring recovery of critical
over ORM and provides periodic updates to RMC. ORMC in
activities at agreed levels within agreed timeframe, thereby
turn is supported by an independent ORM Function that is
complying with various regulatory requirements and minimising
responsible for designing and deploying ORM framework
the potential business impact on the Company. All the
and processes that help Business and Support functions
business critical processes are tested in a timely manner for
identification and management of risks on proactive
business continuity.
basis, ongoing review of Systems and Controls through
risk and control self-assessment (RCSA), timely reporting
In view of the increased move to digital and adoption of new
of operational loss events and near miss events and its
technologies, there was a continued focus on Cyber Security
analysis for remediation, monitoring of Key Risk Indicators
and the Company continued to invest in a strong Cyber
(KRIs) monitoring and issue and action management
Defence Programme.
on an ongoing basis. ORM Function works closely with
all Businesses and Support Functions to facilitate
The Risk Management teams of your Company are continuously
implementation of ORM processes. Since a strong risk
scanning the internal and external environment to identify risk
culture is a pre-requisite for effective ORM, ORM Function
and also to capitalise upon the opportunities presented in
also ensures on-going ORM training and awareness.
the environment.

CONTRACTS AND ARRANGEMENTS WITH RELATED INTERNAL AUDIT

PARTY The Company has in place an effective internal audit framework
During the year under review, all transactions entered into by to monitor the efficacy of internal controls with the objective of
the Company with related parties were in ordinary course of providing to the Audit Committee and the Board of Directors,
business and on an arm’s length basis and were not considered an independent and reasonable assurance on the adequacy
material as per the provisions of Section 188 of the Act read and effectiveness of the organization’s risk management,
with the Companies (Meetings of Board and its Powers) Rules, internal control and governance processes. The framework is
2014. Hence, disclosure in form AOC-2 under Section 134(3) commensurate with the nature of the business, size, scale and
(h) of the Act, read with Rule 8 of Companies (Accounts of complexity of its operations with a Risk Based Internal Audit
Companies) Rules, 2014, is not applicable. There were no (RBIA) approach.
material transactions entered into with related parties during
the period under review, which may have had any potential The Company has implemented an RBIA Programme in
conflict with the interests of the Company at large. accordance with the requirements of RBI circular dated 3rd
February 2021. The internal audit plan is developed based on
Prior omnibus approval is obtained for Related Party Transactions the risk profile of business activities of the organization. The
(“RPTs”) which are of a repetitive nature and entered into in the audit plan covers process audits at the head office and across
ordinary course of business and at arm’s length. A statement various branches of the organization. The Internal audit plan
on RPTs specifying the details of the transactions, pursuant to is approved by the Audit Committee and Internal audits are
each omnibus approval granted, is placed on a quarterly basis undertaken on a periodic basis to independently validate the
for review by the Audit Committee. existing controls. Internal Audit Reports are regularly reviewed by
the management and corrective action is initiated to strengthen
Pursuant to Regulation 23(9) of SEBI Listing Regulations, controls and enhance the effectiveness of existing systems.
disclosures of RPTs on a standalone basis are submitted to
the stock exchanges on a half-yearly basis along with Financial Significant audit observations, if any, are presented to the Audit
Results and published on the Company’s website at https:// Committee along with the status of management actions and
abfl.adityabirlacapital.com the progress of implementation of recommendations.
The details of contracts and arrangements with related parties DIRECTORS’ RESPONSIBILITY STATEMENT
of the Company for the year under review, are given in notes Pursuant to Section 134(5) of the Act and to the best of their
to the Financial Statements, which form part of this Annual knowledge and belief and according to the information and
Report. The Policy on Related Party Transactions, as approved explanations obtained from the operating management, the
by the Board, is available on the Company’s website at: https:// Directors of the Company state that: -
abfl.adityabirlacapital.com
i) in the preparation of annual accounts for the financial
year ended 31st March 2023, the applicable accounting
INTERNAL FINANCIAL CONTROLS standards have been followed along with proper
The Company has well-established internal control systems in explanation relating to material departures, if any;
place which are commensurate with the nature of its business
and size, scale and complexity of its operations. Standard ii) the Directors had selected appropriate accounting policies
Operating Procedures (SOP) and Risk Control Matrices designed and applied them consistently and made judgments and
to provide a reasonable assurance are in place and are being estimates that are reasonable and prudent so as to give
continuously monitored and updated. a true and fair view of the state of affairs of the Company
as at 31st March 2023 and of the profit of the Company
The Company also periodically engage outside experts to carry for the year ended on that date;
out independent review of the effectiveness of various business
processes. The observations and best practices suggested iii) the Directors had taken proper and sufficient care for
are reviewed by the management and Audit Committee the maintenance of adequate accounting records in
and appropriately implemented with a view to continuously
strengthen internal controls.
accordance with the provisions of the Act for safeguarding Director(s) of the Company with effect from close of business
the assets of the Company and for preventing and hours on 8th March 2023.
detecting fraud and other irregularities;
The Board places on record its sincere appreciation for the
iv) the Directors had prepared the Statement of Accounts valuable services rendered by Mr. Ajay Srinivasan, Mr. Ashwani
for the financial year ended 31st March 2023 on a “going Puri, Mr. Jitender Balakrishnan and Mr. Darius J Kakalia during
concern basis”; their tenure as Directors of the Company.
v) the Directors had laid down internal financial controls to be Retirement by Rotation
followed by the Company and that such internal financial Pursuant to Section 152 of the Act read with the Articles
controls are adequate and operating effectively; of Association of the Company, the Board of Directors basis
the recommendation of the Nomination & Remuneration
vi) the Directors had devised proper systems to ensure Committee will recommend to the Members the Non-Executive
compliance with the provisions of all applicable laws to Director retiring from the Board by rotation. A detailed profile
the Company and that such systems were adequate and of the said Director seeking re-appointment will be provided in
operating effectively. the Notice of the 32nd Annual General Meeting of the Company.
DIRECTORS/KEY MANAGERIAL PERSONNEL Declaration by Independent Directors

Appointment/Resignation of Directors All Independent Directors have submitted their declaration of
As on 31st March 2023, the Board of Directors comprised of 7 independence, pursuant to the provisions of Section 149(7) of
(seven) Directors out of which 4 (four) are Independent Directors the Act and Regulation 25(8) of the SEBI Listing Regulations,
(including 1 Woman Director), 2 (two) Non-Executive Directors stating that they meet the criteria of independence as provided
and 1 (one) Managing Director & CEO. in Section 149(6) of the Act and Regulation 16(1)(b) of the SEBI
Listing Regulations and they are not aware of any circumstance
Further the following changes took place in the composition of or situation, which exist or may be reasonably anticipated, that
the Board of the Company during the year under review: could impair or impact their ability to discharge their duties
with an objective independent judgment and without any
Appointments external influence.
Ms. Vishakha Mulye (DIN: 00203578) was appointed as the

The Board is of the opinion that the Independent Directors
Non-Executive Director of the Company w.e.f. 21st October
of the Company possess requisite qualifications, experience,
2022, liable to retire by rotation.
expertise and hold the highest standards of integrity.
Mr. Rajat Jain (DIN: 00046053) and Mr. Nagesh Pinge (DIN:
All Independent Directors of the Company have registered their
00062900) were appointed as the Independent Directors of
name in the data bank maintained with the Indian Institute of
the Company w.e.f. 9th March 2023.
Corporate Affairs in terms of the provisions of the Companies
(Appointment and Qualification of Directors) Rules, 2014.
Cessations
Mr. Ajay Srinivasan (DIN : 00121181) tendered his resignation Key Managerial Personnel
from the directorship of the Company on 3rd August 2022 with
In terms of the provisions of Sections 2(51) and 203 of the Act,
immediate effect as he stepped down as the Chief Executive
read with the Companies (Appointment and Remuneration of
Officer of Aditya Birla Capital Limited.
Managerial Personnel) Rules, 2014, Mr. Rakesh Singh, Managing
Director & Chief Executive Officer (MD& CEO), Mr. Tushar Shah,
Mr. Ashwani Puri (DIN: 00160662), Mr. Jitender Balakrishnan
KMP & CEO – PSFG, Mr. Pradeep Agrawal, Chief Financial Officer
(DIN: 00028320) and Mr. Darius J Kakalia (DIN: 00029159)
(CFO) and Mr. Ankur Shah, Company Secretary (CS), are the Key
completed their tenure as Independent Directors of the
Managerial Personnel of the Company.
Company on 8th March 2023 and consequently ceased to be the

Fit and Proper Criteria Further details on the Board Meetings, composition and
attendance are provided in the Corporate Governance Report,
All the Directors meet the requirements of fit and proper
criteria stipulated under the Master Directions – “Non-Banking
Financial Company - Systemically Important Non-Deposit
Audit Committee
taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016”, as amended. The Company has constituted an Audit Committee with its
composition, quorum, powers, role and scope in line with the
applicable provisions of the Act, SEBI Listing Regulations and
ANNUAL PERFORMANCE EVALUATION RBI Master Directions.
The evaluation framework for assessing the performance of
the Directors of the Company comprises of assessment of During the financial year under review, the Audit Committee
their contributions at the meetings, strategic perspective or reviewed the internal controls put in place to ensure that the
inputs regarding the growth and performance of the Company, accounts of the Company are properly maintained and that the
amongst others. accounting transactions are in accordance with prevailing laws
and regulations. In conducting such reviews, the Committee
Pursuant to the provisions of the Act and SEBI Listing found no material discrepancy or weakness in the internal
Regulations and in terms of the Framework of the Board control system of the Company. The Committee also reviewed
Performance Evaluation, the Nomination and Remuneration the procedures laid down by the Company for assessing and
Committee and the Board of Directors have carried out an managing risks.
annual performance evaluation of the Board, performance of
various Committees of the Board and individual Directors. The Further details on the Audit Committee, its Meetings,
manner in which the evaluation was carried out had been set out composition and attendance are provided in the Corporate
in the Report on Corporate Governance, which forms part of this Governance Report, which forms part of this Annual Report.
Annual Report. The details of the programme for familiarisation
of the Independent Directors of your Company are available on During the financial year under review, all recommendations
your Company’s website at https://abfl.adityabirlacapital.com. made by the Audit Committee were accepted by the Board.
Outcome of the evaluation Nomination & Remuneration Committee

The Board of the Company was satisfied with the functioning The Company has constituted a Nomination and Remuneration
of the Board and its Committees. The Committees are Committee (“NRC”), with its composition, quorum, powers, role
functioning well and besides covering the Committees’ terms and scope in line with the applicable provisions of the Act, SEBI
of reference, as mandated by law, important issues are brought Listing Regulations and RBI Master Directions.
up and discussed in the committee meetings. The Board
was also satisfied with the contribution of Directors, in their Further details on the NRC, its Meetings, composition and
individual capacities. attendance are provided in the Corporate Governance Report,
MEETINGS OF THE BOARD AND ITS COMMITTEES
Board The NRC has formulated an Executive Remuneration Philosophy/
policy on remuneration under the provisions of Section 178(3) of
The Board meets at regular intervals to discuss and decide on
the Act, which is attached as Annexure II to the Board’s Report
the Company’s performance and strategies. During the financial
and the same is uploaded on the website of the Company at
year under review, a total of 7 (seven) Board Meetings were
https://abfl.adityabirlacapital.com.
held on 11th May 2022, 27th June 2022, 2nd August 2022, 28th
September 2022, 5th November 2022, 31st January 2023 and
21st March 2023.

Other Committees The observation(s) made in the Auditor’s Report are self-
explanatory and therefore do not call for any further comments
The Board of Directors has also constituted the
under Section 134(3)(f) of the Act.
following Committees:
• Corporate Social Responsibility Committee The Auditor’s Report does not contain any qualifications,
• Risk Management Committee reservations, adverse remarks or disclaimer. The Statutory
• Asset Liability Management Committee Auditors have not reported any incident of fraud to the Audit
Committee or the Board of Directors under Section 143(12) of
• IT Strategy & Information Security Steering Committee
the Act during the financial year under review.
• Stakeholders Relationship Committee
• PIT Regulation Committee Secretarial Audit and Secretarial Compliance Report
Pursuant to the requirements of Section 204(1) of the Act read
More information on all of the above Committees including with Rule 9 of Companies (Appointment and Remuneration
details of their Meetings, composition and attendance are of Managerial Personnel) Rules, 2014, the Company has
provided in the Corporate Governance Report, which forms part appointed M/s. BNP & Associates, Company Secretaries, to
of this Annual Report. conduct the Secretarial Audit for the financial year under review.
The Secretarial Audit Report in Form MR-3 for the financial
ANNUAL RETURN year under review, as received from M/s. BNP & Associates,
Pursuant to the provisions of Section 134(3)(a) of the Act, the Company Secretaries, is attached as Annexure III to the
Annual Return in Form MGT-7 of the Company for the financial Board’s Report. The Secretarial Audit Report is self-explanatory.
year 2022-23 is available on the website of the Company and
can be accessed at https://abfl.adityabirlacapital.com. Pursuant to Regulation 24A of the SEBI Listing Regulations, the
Annual Secretarial Compliance Report obtained from M/s. RS &
MP Associates, Practicing Company Secretaries for the financial
AUDITORS year under review was placed before the Audit Committee
Joint Statutory Auditors, their Report and Notes to and Board. The Annual Secretarial Compliance Report for
Financial Statements the financial year under review will be submitted to the Stock
Pursuant to the RBI Guidelines on appointment of Statutory Exchanges and uploaded on the website of the Company.
Auditors of inter alia, NBFCs (including HFCs), the Members of
the Company, on the recommendation of the Audit Committee The Secretarial Audit Report and the Annual Secretarial
and the Board of Directors, had approved the reduction of tenure Compliance Report do not contain any qualifications,
of Deloitte Haskins & Sells LLP, as the Statutory Auditors of the reservations or adverse remarks.
Company to three years at their meeting held on 16th August
2021 i.e. till the conclusion of 32nd Annual General Meeting of Cost Records and Auditors
the Company. The Board of Directors on the recommendation The provisions of Cost Records and Cost Audit as prescribed
of the Audit Committee will recommend to the Members the under Section 148 of the Companies Act, 2013 are not
new joint Statutory Auditors to be appointed at the ensuing AGM applicable to the Company.
for the vacancy caused due to conclusion of tenure of Deloitte
Haskins & Sells LLP. Reporting of Frauds by Auditors
The Auditors of your Company, i.e. the Joint Statutory Auditors
Pursuant to the above mentioned RBI Guidelines, M/s. Singhi
and Secretarial Auditors have not reported any incident of fraud
& Co., Chartered Accountants (Firm Registration No. 302049E)
to the Audit Committee or the Board of Directors under Section
had been appointed as the Joint Statutory Auditors w.e.f.
143(12) of the Act during the financial year under review.
16th December 2021, of the Company for a term of 3 (Three)
years i.e. till the conclusion of 33rd Annual General Meeting of
the Company.

CORPORATE SOCIAL RESPONSIBILITY state that during the financial year under review, two complaints
were received under the Sexual Harassment of Women at
In accordance with Section 135 of the Act, the Company has a
Workplace (Prevention, Prohibition and Redressal) Act, 2013
Corporate Social Responsibility (CSR) Committee.
which were closed as on 31st March 2023.
The CSR Committee has formulated and recommended to the

The Company has complied with the provisions of Sexual
Board, a Corporate Social Responsibility Policy (“CSR Policy”)
Harassment of Women at Workplace (Prevention, Prohibition
indicating the activities to be undertaken by the Company, which
and Redressal) Act, 2013.
has been approved by the Board. The CSR Policy is available on
the Company’s website at https://abfl.adityabirlacapital.com
RBI REGULATIONS
As a part of its initiatives under CSR, the Company has undertaken The Company has complied with all the regulations of RBI to
projects in the areas of Health Care, Education, Sustainable the extent applicable as a Non-Deposit taking Systemically
Livelihood, Women Empowerment and Promotion of Sports. Important Company.
The projects are also in line with the statutory requirements
under the Companies Act, 2013 and its CSR Policy. During The Reserve Bank of India (RBI) has issued the Scale Based
the year under review, the Company has spent /contributed Regulation for NBFCs dated 22nd October 2021 vide RBI Press
₹28.02 Crore (including administrative overheads) towards CSR release dated 30 th September 2022. The Company has been
projects along with the excess balance amount carried forward categorised under NBFC- Upper Layer (UL) under the scale
from the previous FY 22. There was no unspent amount as on based regulations.
31st March 2023. The details of the CSR projects are available
on the Company’s website at https://abfl.adityabirlacapital.com The Company is in compliance with the regulatory guidelines
applicable to NBFCs in Upper Layer, as issued by RBI from time
The required disclosure as per Rule 8 of Companies (Corporate to time. As per the requirements of circular no. RBI/2022-
Social Responsibility Policy) Rules, 2014 is attached as 23/26 DOR.ACC.REC.No.20/21.04.018/2022-23 dated 19th
Annexure IV to this report. April 2022 issued by RBI, your Board has approved the roadmap
for compliance with the disclosure requirements of a listed
WHISTLE BLOWER POLICY/VIGIL MECHANISM company under the SEBI Listing Regulations.
In compliance with the provisions of Section 177(9) of the

Act read with Rule 7 of the Companies (Meetings of Board HUMAN RESOURCES
and its Powers) Rules, 2014 and Regulation 22 of the SEBI The Company has always aspired to be an organization and a
Listing Regulations, the Company has formulated a Whistle workplace which attracts, retains and provides a canvas for
blower policy/ vigil mechanism for Directors and Employees to talent to operate. It’s vision of being a leader and a role model
report concerns, details of which are covered in the Corporate in a broad based and integrated financial services business and
Governance Report, which forms part of this Annual Report. a culture that is purpose driven gives meaning to our people.
The said policy is available on the Company’s website at https:// We believe that meaning at work is created when people relate
abfl.adityabirlacapital.com to the purpose of the organisation, feel connected to their
leaders and have a sense of belonging. Our focus stays strong
POLICY ON PREVENTION OF SEXUAL HARASSMENT on providing our people a work environment that welcomes
diversity, nurtures positive relationships, provides challenging
OF WOMEN AT WORKPLACE work assignments and provides opportunities based on
The Company has in place an appropriate policy which is in line meritocracy for people to grow and build their careers with us
with the requirements of the Sexual Harassment of Women at in line with their aspirations.
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
An Internal Complaints Committee has been set up to redress As on 31st March 2023, the employee strength of the Company
complaints, if any, received regarding sexual harassment was 4,799 employees, comprising of more than 69.5%
of women. All women employees (permanent, contractual, millennials and 11.8% women.
temporary, trainees) are covered under this policy. We further

SECRETARIAL STANDARDS OF INSTITUTE OF iii. There was no public issue, rights issue, bonus issue or
preferential issue, etc.
COMPANY SECRETARIES OF INDIA
iv. There was no issue of shares with differential rights.
The Company is in compliance with the Secretarial Standards
specified by the Institute of Company Secretaries of India v. There was no transfer of un-paid or unclaimed amount to
(“ICSI”) on Meetings of the Board of Directors (SS-1) and Investor Education and Protection Fund (IEPF).
General Meetings (SS-2). vi. There were no significant or material orders passed by the
Regulators or Hon’ble Courts or Tribunals which impact the
CODE FOR PROHIBITION OF INSIDER TRADING going concern status and Company’s operations in future.
Pursuant to SEBI (Prohibition of Insider Trading) Regulation vii. There were no proceedings for Corporate Insolvency
2015, as amended, the Company has a Board approved code Resolution Process initiated under the Insolvency and
of conduct to regulate, monitor and report trading by insiders Bankruptcy Code, 2016.
(‘Code of Conduct’) and a Code of Practices and Procedures viii. There was no failure to implement any Corporate Action.
for Fair Disclosure of Unpublished Price Sensitive Information ix. There were borrowings from Banks or financial institutions,
(‘Code of Fair Disclosure’) for its listed NCDs. in the ordinary course of its business.
Further details on the same form part of the Report on Corporate

Governance which forms part of this Annual Report.
ACKNOWLEDGEMENTS
The Directors take this opportunity to express their appreciation
for the support and co-operation extended by our various
AWARDS AND CERTIFICATIONS partners and other business associates. The Directors gratefully
• ABFL has been declared a ‘Winner-Large NBFC’ in the acknowledge the ongoing co-operation and support provided
Lending category at the Assocham 17th Annual Summit & by all Statutory and Regulatory Authorities.
Awards Banking & Financial Sector Lending Companies.
• ABFL won the ‘Excellence in Personal Loan Journey’ award at The Board also acknowledges the support and contribution of
Lentra Digital Lending Transformation Global Summit 2022, Company’s bankers, Stock Exchanges, Registrar of Companies,
in association with ET Edge Depositories, the Reserve Bank of India, Securities and
Exchange Board of India, Central and State Governments and
OTHER DISCLOSURES other regulatory bodies and the shareholders who have always
supported and helped the Company to achieve our objectives.
In terms of applicable provisions of the Act, the Company
discloses that during the year under review:
The Directors place on record their appreciation for the
i. There was no issue of shares (including sweat equity exemplary contribution made by the employees of the Company
shares) to employees of the Company under any scheme at all levels. Their dedicated efforts and enthusiasm have been
save and except under Employee Stock Option Scheme pivotal to the Company’s growth.
referred to in this Report.
ii. There was no Scheme for provision of money for the
purchase of its own shares by employees or by trustees
for the benefit of employees.
For and on behalf of the Board of Directors of

Vishakha Mulye Rakesh Singh

Place: Mumbai Director Managing Director & CEO
Date: 9th May 2023 DIN – 00203578 DIN – 07006067

Annexure I
Details to be included in the Board report as per Section 197(12) & Rule 5 (1) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 for Financial Year 2022-23
1 Ratio of remuneration of each Director to median remuneration of the employees of the company for the financial year;
The ratio of the remuneration paid to Mr. Rakesh Singh, MD & CEO, to median remuneration of the employees of the company
for the financial year is 261.24
2 Percentage increase in remuneration of each Director, CFO, CEO, CS or Manager in the FY 2022-23
Mr. Rakesh Singh, MD & CEO Mr. Tushar Shah, CEO – PSFG Mr. Pradeep Agrawal, CFO Mr. Ankur Shah, CS
10% 8% 11.6% 8.5%
3 Percentage increase in median remuneration of employees in the FY

9.33%
4 No. of permanent employees on rolls of the Company

4,799
5 Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and
point out if there are any exceptional circumstances for increase in the managerial remuneration$
Average percentile increase in the salaries of employees other than the managerial personnel in the last financial year 8.06%
Average percentile increase in the salaries of the managerial personnel in the last financial year 10.03
6 It is hereby affirmed that the remuneration paid is as per the remuneration policy of the Company
$ For the purpose of calculating managerial remuneration, only MD & CEO is to be considered.

Annexure II
EXECUTIVE REMUNERATION PHILOSOPHY/POLICY
Aditya Birla Finance Limited (“the Company"/“We”/“Our”) an Governance Structure for Compensation:
Aditya Birla Group Company adopts this Executive Remuneration
1. The Nomination and Remuneration Committee (“NRC”) is
Philosophy/ Policy in accordance with the applicable regulations
responsible for framing, review and implementation of the
from time to time including the Companies Act 2013, the
Company’s compensation policy on behalf of the Board and
Securities and Exchange Board of India (Listing Obligations
its role is as set out in the NRC Charter/Terms of Reference.
and Disclosure Requirements) Regulations, 2015 (“LODR
Regulations”) and the RBI guidelines on compensation of 2. The Nomination and Remuneration Committee may also
Key Managerial Personnel (KMP) and Senior Management co-ordinate with the Risk Management Committee with
in NBFCs vide circular no. RBI/2022-23/36 DOR.GOV.REC. the objective of suitably aligning compensation with
No.29/18.10.002/2022-23 dated 29th April, 2022 (‘Applicable prudent risk taking as applicable.
Law’). This philosophy/ policy is detailed below.
3. This Policy is subject to review by the NRC on an annual
basis or more frequently as required and approved by
Aditya Birla Finance Limited: Executive Remuneration the Board.
Philosophy/Policy
At the Aditya Birla Finance Limited, we expect our executive P rinciples for Determination of Compensation for
team to foster a culture of growth and prudent risk-taking. Our Executives:
Executive Remuneration Philosophy/Policy supports the design ompensation to Executives shall be determined based on the
C
of programs that align executive rewards (including fixed pay, following principles:
variable pay and perquisites and benefits) with the long-term
e aim to provide competitive remuneration opportunities
W
success of our stakeholders.
to our executives by positioning target total remuneration
(including fixed pay, variable pay and perquisites and benefits)
Objective: directionally between median and top quartile of the primary
Our executive remuneration program is intended to: talent market.
1. Provide for monetary and non-monetary remuneration
1. The level and composition of compensation is reasonable
elements to our executives on a holistic basis.
and sufficient to attract, retain and motivate the Executives
2. To ensure effective governance of compensation practices of the quality required to run the Company successfully,
and alignment with prudent risk taking. which means compensation takes on board:
3. To ensure that the compensation practices take on board • Market competitiveness for the role (‘market’ for every
the regulatory framework stipulated from time to time by role is defined as companies from which the Company
RBI or any other relevant regulatory body. attracts talent or companies to which the Company
loses talent).
Coverage: • The size and scope of the role (including those in control
This Policy shall be applicable to the following Executives: functions) and the market standing, skills and experience
of incumbents while positioning our executives.
1. Executive Director of the Company
• The size of the Company, complexity of the sector/
2. Key Managerial Personnel (KMP)
industry/Company’s operations and the Company’s
a)
CEO/Managing Director/Whole Time Director/ capacity to pay.
Manager
2. Linkage of compensation to appropriate performance
b) Chief Financial Officer
benchmarks.
c) Company Secretary
3.
Compensation outcomes are symmetric with risk
3. Senior Management Personnel: i.e., Officers/Personnel of
outcomes and pay-outs thereof are sensitive to the time
the company who are members of its core management
horizon of the risk.
team excluding Board of Directors comprising all members
of management one level below the Managing Director / 4.
Compensation structure will have a proper balance
Whole Time Director/CEO or Manager. between Fixed Pay and Variable Pay.

Executive Pay-Mix • We aim that the remuneration programs do not encourage

excessive risk taking. We review our remuneration programs
Our executive pay-mix aims to strike the appropriate balance
keeping in mind the balance between risk and payout and
between key components:
material portion of the variable pay is deferred spread over
three to four years in line with the risk involved.
I. Fixed Pay: Comprising of Basic Salary, Allowances,
Retirals and other benefits and will include imputed value
Malus and Clawback
of benefits like Housing and Car. It also includes cost of
retirals such as Company’s contribution to PF, Gratuity, ABFL believes in sustained business performance in tandem
superannuation and pension [Including National Pension with prudent risk taking.
System (NPS)].
Malus arrangement permits the Company to prevent vesting of
II. Variable Pay: Includes Performance bonus/Annual all or part of the variable pay which has been deferred. It does
Incentive, Long Term Incentive Pay in form of cash not reverse vesting after it has already occurred.
bonuses, all share-linked instruments (e.g. ESOP, SARS,
etc.). (The deterioration in the financial performance of Clawback is a contractual agreement between the employee
the Company/business segment/ function/ individual can and the Company in which the employee agrees to return
lead to a contraction in the total amount of variable pay, previously paid or vested compensation attributable to a given
which can even be reduced to zero for a particular year reference year.
depending on the performance outcome of the year.)
Malus and clawback is applicable to employees even after their
III. Perquisite & Benefits: Perquisite Pay/Benefits are over separation from the organisation.
and above Fixed Pay and include Medical Benefit; Life
Insurance Benefit; Personal Accident Benefit; etc. These Malus and clawback may be applied for circumstances like gross
broad-based plans may be applicable to all employees or and/or willful negligence in performance of their duty or has
select group of employees. committed fraud or has performed an act with malafide intent
or obstructs the functioning of an organisation; misconduct;
In addition to these broad-based plans, Executives are Material breach of Code of Conduct, any Non-Disclosure
eligible for perquisites and benefits plans commensurate Agreement, regulatory procedures, internal rules and regulations
with their roles. These benefits are designed to encourage and any other additional circumstances as determined by NRC.
long-term careers with the Company/Group.
In deciding the application of malus/clawback to any part or all
IV. Other Elements: Which includes Joining/ Sign on Bonus, of variable pay or incentives (whether paid, vested or unvested),
Severance package, Deferred Incentive Plans, etc. the NRC will follow due process and adhere to the principles
of natural justice and proportionality. Further, in assessing the
Salient features of the compensation structure quantum of cancellation/withdrawal, the NRC will take into
consideration all relevant factors, including inter alia, internal
• The proportion of variable pay to fixed pay is higher at senior
factors such as role and responsibilities of the employee,
levels and varies across roles based on levels of responsibility.
culpability and proximity to the misconduct as well as any
• Variable Pay payable is subject to Group, Company, Business/ external factors, including but not restricted to situations, that
Function and Individual performance. Part of variable pay is may have been beyond the control of the concerned employee.
deferred over a time horizon of 3 to 4 years in the manner
determined by NRC/Board. This may be in the form of cash
and non-cash components of the variable pay.

Annexure III
FORM NO. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (iv) R epresentations made, documents shown and

The Members information provided by the Company, its officers, agents
and authorized representatives during our conduct of
Secretarial Audit.
Regd. Office: - Indian Rayon Compound,
Veraval, We hereby report that, in our opinion, during the audit period
Gujarat- 362266 covering the financial year ended on 31st March 2023, the
Company has:
We have conducted the Secretarial Audit of the compliance
(i) Complied with the statutory provisions listed hereunder; and
of applicable statutory provisions and the adherence to good
corporate practices by Aditya Birla Finance Limited having (ii) Board processes and compliance mechanism in place
CIN U65990GJ1991PLC064603 (hereinafter called the
‘Company’) for the financial year ended on 31st March 2023 to the extent, in the manner and subject to the reporting
[(the “Audit Period”)/“(the period under review)”] made hereinafter.
We conducted the Secretarial Audit in a manner that provided The members are requested to read this report along with our
us with a reasonable basis for evaluating the Company’s letter of even date annexed to this report as Annexure-A.
corporate conducts/ statutory compliances and expressing
our opinion thereon. 1. C ompliance with specific statutory provisions
We further report that:
We are issuing this report based on:
1.1. We have examined the books, papers, minutes books,
(i) Our verification of the Company’s books, papers, minutes forms and returns filed and other records maintained by
books, soft copies of various records, scanned copies the Company during the year according to the applicable
of minutes of the Board and its Committee, forms and provisions/clauses of:
returns filed and other records maintained by the Company (i) The Companies Act, 2013 (the Act) and the Rules
during the financial year ended 31st March 2023 as well made thereunder;
as before the date of issue of this report;
(ii) The Securities Contracts (Regulation) Act, 1956 and
(ii) Our observations pursuant to visits to the office/s of the rules made thereunder to the extent of transfer
the Company; of securities;
(iii) The Depositories Act, 1996 and the Regulations and

(iii) C ompliance certificates confirming compliance with Bye-laws framed thereunder;
all laws applicable to the Company as given by the Key
Managerial Personnel/Senior Managerial Personnel of the (iv) Foreign Exchange Management Act, 1999 and the
Company and taken on record by the Audit Committee/ Rules and Regulations made thereunder to the
Board of Directors; and extent of External Commercial Borrowing made by
the Company;

(v)
The following Regulations and Guidelines prescribed (c) The Secretarial Standards on meetings of Board
under the Securities and Exchange Board of India Act, of Directors (SS-1) and Secretarial Standards
1992 (‘SEBI Act’): - on General Meetings (SS-2) mentioned under
paragraph 1.1 (vi) above to the extent applicable
(a)
The Securities and Exchange Board of to meetings of the Board and its committees
India (Listing Obligations and Disclosure held during the year and the 31st Annual
Requirements) Regulations, 2015 (LODR); General Meeting held on 25th August 2022
and Extra-Ordinary General Meetings held on
(b) The Securities and Exchange Board of India 4th October 2022, 7th November 2022,
(Issue and Listing of Non-Convertible Securities) (at a shorter notice), with the consent of the
Regulations, 2021; members and 3rd March 2023, (at a shorter
notice), with the consent of the members.
(c) The Securities and Exchange Board of India The compliance with the provisions of the
(Prohibition of Insider Trading) Regulations, Rules made under the Act with regard to the
2015*, and meetings of the Board and its committees held
through video conferencing were verified based
(vi) Secretarial Standards issued by the Institute of on the minutes of the meetings provided by
Company Secretaries of India (Secretarial Standards) the Company.
as applicable mandatorily to the Company.
(d) During the year under review, the Company had
* The Company has also maintained a Structured received 9 (Nine only) complaints under the
Digital Database (“SDD”) pursuant to the requirements Whistle Blower Mechanism and 2 cases (Two
of regulation 3 (5) and 3 (6) of Securities and only) under The Sexual Harassment of Women
Exchange Board of India (Prohibition of Insider at Workplace (Prevention, Prohibition and
Trading) Regulations, 2015. Redressal) Act, 2013 (“POSH Act, 2013”) and
after resolving the complaints, we are informed
1.2 During the period under review, and also considering the that, at the end of the year, 1 (One only)
compliance related to action taken by the Company after complaint under Whistle Blower Mechanism
31st March 2023, but before the date of issue of this was outstanding which has been resolved as
report, the Company has, to the best of our knowledge and on the date of this report and there are no cases
belief and based on the records, information, explanations outstanding under POSH Act, 2013.
and representations furnished to us:
1.3 We are informed that, during the year, the Company was
(i) Complied with the provisions of the Act, Rules, not required to initiate any compliance related action in
Regulations, Guidelines and Secretarial Standards respect of the following laws/rules/regulations/standards
as mentioned above. and was consequently not required to maintain any books,
papers, minute books or other records or file any forms/
(ii) Generally complied with the applicable provisions/ returns thereunder:
clauses of:
(i) Foreign Exchange Management Act, 1999 and the
(a) The Act and Rules mentioned under paragraph Rules and Regulations made thereunder to the
1.1 (i) extent of Foreign Direct Investment and Overseas
Direct Investment;
(b) FEMA to the extent of External Commercial
Borrowings mentioned under paragraph 1.1 (ii)
The following Regulations and Guidelines prescribed
(iv) and under the SEBI Act, 1992: -

Annexure III (Contd.)
a. The Securities and Exchange Board of India (iii) Four Non-Executive Independent Directors, including
(Issue of Capital and Disclosure Requirements) a Woman Independent Director - Mr. Subhash C.
Regulations, 2018; Bhargava (DIN 00020021), Mr. Rajat Kumar Jain (DIN
00046053), Mr. Nagesh Pinge (DIN 00062900), and
b. The Securities and Exchange Board of India Ms. Alka Bharucha (DIN 00114067)
(Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the 2.2 (A) The processes relating to the following changes in the
Companies Act, 2013 and dealing with client; composition of the Board of Directors and Key Managerial
Personnel, during the year, were carried out in compliance
c. The Securities and Exchange Board of India with the provisions of the Act and LODR:
(Delisting of Equity Shares) Regulations, 2021;
i. Resignation of Mr. Ajay Srinivasan (DIN: 00121181)
d. The Securities and Exchange Board of India as Non – Executive Non-Independent Director w.e.f
(Buyback of Securities) Regulations, 2018 August 03, 2022.
e. The Securities and Exchange Board of India ii. The Board of Directors at their meeting held on 11th
(Substantial Acquisition of Shares and May 2022 has recommended the re-appointment of
Takeovers) Regulations, 2011. Mr. Kamlesh Rao (DIN: 07665616), Director retiring
by rotation and the same has been approved by the
f. The Securities and Exchange Board of India shareholders at their 31st Annual General Meeting
(Share Based Employee Benefits and Sweat held on August 25, 2022
Equity) Regulations, 2021.
iii. The Board of Directors at their meeting held on
1.4 We have also examined, on test check basis, the relevant June 27, 2022 has approved making an application
documents and records maintained by the Company with to RBI for appointment of Ms. Vishakha Mulye (DIN:
respect to: 00203578) as a Non-Executive Director of the
Company which was approved by Reserve Bank of
(a)
Non-Banking Financial Company- Systemically India, vide its letter dated October 04, 2022. Her
Important Non-Deposit taking Company and Deposit appointment was then approved by the Board of
taking Company (Reserve Bank) Directions, 2016, Directors through circular resolution on October 21
as amended, and other relevant guidelines and 2022. and by the shareholders of the Company w.e.f.
circulars issued by the Reserve Bank of India, from October 21, 2022, at the Extra – Ordinary General
time to time. Meeting held on November 07, 2022.
2. Board processes: iv. Cessation of directorship of Mr. Darius J. Kakalia

(DIN: 00029159) as an Independent Director of the
We further report that:
Company under section 149(11) of the Companies
2.1 The Board of Directors of the Company as on March 31, Act, 2013 w.e.f March 08, 2023 on account of
2023 comprised of: completion of term.
(i) Managing Director - Mr. Rakesh Singh (DIN 07006067) v. Cessation of directorship of Mr. Jitender Balakrishnan
(DIN: 00028320) as an Independent Director of the
(ii) Two Non-Executive Non-Independent Directors - Ms Company under section 149(11) of the Companies
Vishakha Mulye (DIN 00203578) and Mr. Kamlesh Act, 2013 w.e.f March 08, 2023 on account of
Rao (DIN 07665616) and; completion of term.

vi. Cessation of directorship of Mr. Ashwani Puri (DIN: such as audited financial statement/results,
00160662) as an Independent Director of the unaudited financial results and connected papers; and
Company under section 149(11) of the Companies
Act, 2013 w.e.f March 08, 2023 on account of (ii) Additional subjects/ information/ presentations and
completion of term. supplementary notes
vii. The Board of Directors at their meeting held on 2.6 A system exists for directors to seek and obtain further
January 31 2023 has appointed Mr. Rajat Kumar information and clarifications on the agenda items before
Jain (DIN: 00046053) as Additional Non-Executive the meetings and for their meaningful participation at
Independent Director of the Company and the same the meetings.
has been approved by the shareholders w.e.f. March
09, 2023 at the Extra – Ordinary General Meeting 2.7 We note from the minutes verified that, at the meetings
held on March 03, 2023. of the Board held during the year:
viii. The Board of Directors at their meeting held on (i) Decisions were carried through majority and
January 31, 2023 has appointed Mr. Nagesh Pinge
(DIN: 00062900) as Additional Non-Executive (ii) No dissenting views were expressed by any Board
Independent Director of the Company and the same member on any of the subject matters discussed,
has been approved by the shareholders w.e.f. March that were required to be captured and recorded as a
09, 2023 at the Extra – Ordinary General Meeting part of the minutes.
held on March 03, 2023.
3. Compliance Mechanism
2.3 Adequate notice of the meetings of the Board and its
There are reasonably adequate systems and processes in
committees were sent to all the directors to enable them
the Company, commensurate with its size and operations,
to plan their schedule for the meetings of the Board or
to monitor and ensure compliance with applicable laws,
its Committees, at least seven days in advance except
rules, regulations. We observe that during the year under
for the few meetings which were convened at shorter
review, there has been a delay in filing of return DNBS
notice, with the consent of the directors /members of the
10 with the Reserve Bank of India under Non-Banking
Committee/s, to transact urgent business, at which more
Financial Company- Systemically Important Non-Deposit
than one independent director was present as required
taking Company and Deposit taking Company (Reserve
under Section 173 (3) of the Act and SS-1.
Bank) Directions, 2016 and the delay was due to reasons
beyond the control of the Company.
2.4 Agenda and detailed notes on agenda were sent to the
directors at least seven days before the meetings of the
Board and its committees, other than in respect of a few 4. Specific events/actions
meetings which were convened at a shorter notice to 4.1 During the year, the following specific events/ actions,
transact urgent business, and necessary compliance as having a major bearing on the Company’s affairs, took
required under Section 173 (3) of the Act and SS-1 was place, in pursuance of the above referred laws, rules,
in place. regulations and standards:
2.5 Agenda and detailed notes on agenda for the following a)

The Board of directors at its meeting held on
items were either circulated separately less than seven August 02, 2022 has approved revision in
days before or at the Board meetings and consent of remuneration payable to Mr. Rakesh Singh (DIN:
the Board for so circulating them was duly obtained as - 07006067) Managing Director & CEO of the
required under SS-1 Company, w.e.f. July 01, 2022. The shareholders have
approved the same at the 31st AGM of the Company
(i) Supplementary agenda notes and annexures in held on August 25, 2022.
respect of unpublished price sensitive information

b) The shareholders at the 31st AGM of the Company billing, insuring, guaranteeing, underwriting,
held on August 25, 2022, by way of special resolution, entering into agreements (either individually or
have approved the payment of interim dividend of as a member) with merchant establishments
₹1.65/- per Equity Share of ₹ 10/- each, declared (incorporated or not), managing and carrying
by the Board of Directors at their meeting held on out all actions as necessary or appropriate
March 25, 2022 for the financial year ended March in connection therewith including payment
31, 2022. products, loyalty and/or similar programs,
swipe/point of sale machines, other terminals
c) In compliance with the Reserve Bank of India Master I peripherals or accessories including pin
Direction – Credit Card and Debit Card – Issuance and cards, authorization systems and software for
Conduct Directions, 2022 dated April 21, 2022, the the same.
Board of Directors at its meeting held on September
28, 2022 has approved the proposal of the Company e) i. The Board of Directors at its meeting held on
for undertaking Credit Card business, after obtaining September 28, 2022 has proposed adoption
necessary approval from Reserve Bank of India. We of the ‘Aditya Birla Finance Limited Employee
are informed that the approval from the Reserve Bank Stock Option Scheme 2022’ (“Scheme”) for
of India is yet to be received by the Company. such number of stock options (“Options”) not
exceeding 25,57,812 (Twenty-Five Lakh Fifty-
d) The Board of Directors at its meeting held on Seven Thousand Eight Hundred and Twelve)
September 28, 2022 has recommended the Equity Shares being 0.39% of the fully paid-
approval for Alteration in the Object Clause of the up capital of the Company as on August 31,
Memorandum of Association by inserting new 2022. The shareholders have approved the said
sub-clause 4A in Clause III of the Memorandum scheme at the Extra-Ordinary General Meeting
of Association of the Company. The shareholders held on October 04, 2022.
have approved the Alteration in the Objects Clause
by way of Special Resolution at the Extra-Ordinary ii. The shareholders of the Company, at the Extra-
General Meeting held on October 04, 2022 and the Ordinary General Meeting held on October
following clause is inserted in the Object Clause of 04, 2022 have approved by way of Special
the Memorandum of Association of the Company: Resolution, extension of the benefit of Aditya
Birla Finance Limited Employee Stock Option
4A. To carry on the business of issuance and operation Scheme 2022 to the employees of present or
of various card products such as credit cards, future holding and/or subsidiary company(ies)
prepaid cards, smart cards, charge cards, stores of the Company.
value cards, any other payments products such
as travellers cheques — domestic/international, f) The Board of Directors at its meeting held on
gift vouchers etc., of any form and kind and by November 05, 2022 has approved an increase in
whatever name called for use in India or any the overall limits of borrowings by way of issuance
other country outside India and development of Non-Convertible Debentures (NCDs) for an
of such business in India either on its own or amount not exceeding ₹ 1,00,000 Crore (Rupees
in collaboration/partnership/association with One Lakh Crore Only) as against the previous limit of
other organizations — Indian or international, ₹70,000 Crore and the shareholders of the Company
in compliance with the applicable regulations have approved the increase in the borrowing limits
and subject to requisite regulatory approvals by way of special resolution at the Extra-Ordinary
as may be required from time to time and to General Meeting, held at a shorter notice, on
provide all services incidental thereto including November 07, 2022.
but not limited to servicing thereby collecting,

g) The Board of Directors at its meeting held on 4B. To carry on the business of selling, distribution,
November 05, 2022 has approved creation of Charges marketing as a Corporate Insurance agent and
on the assets of the Company for an amount not brokers, of all kinds of insurance products of
exceeding ₹ 1,00, 000 Crore (Rupees One Lakh Crore various companies in various fields of insurance
Only) at any point of time and the the shareholders such as life, pension & employee benefit, health,
of the Company have approved the same, by way fire, marine, cargo, marine hull, aviation, oil &
of Special Resolution, at the Extra-Ordinary General energy, engineering, accident, liability, motor
Meeting held on November 07, 2022. vehicles, transit & other products of non-
life insurance business and to carry on the
h) The Board of Directors at its meeting held on business of insurance, re-insurance and risk
January 31, 2023 has approved a proposal for management either directly or as an insurance
Corporate Agency License with Insurance Regulatory agent, insurance broker or otherwise and provide
Development Authority of India (IRDAI), for expansion advisory and consultancy services relating to
and diversification of its business by exploring insurance business.
opportunities for carrying on insurance agency
business as corporate agent for life/general/health/ j)
In compliance with RBI Circular bearing no:
insurance policy(ies), etc. to, inter alia, its present/ R B I / 2 0 2 2-2 3 / 2 4 R e f. N o. D o S .C O. P P G . /
future customers. We are informed that the Company SEC.01/11.01.005/2022-23 dated April 11, 2022,
has yet not applied to IRDAI as the Company is the Board of Directors at its meeting held on
awaiting the login credentials from IRDAI. March 21, 2023 has approved the remuneration to
and appointment of Mr. Jitendra Bhati as the Chief
i) The Board of Directors at its meeting held on January Compliance Officer of the Company for a minimum
31, 2023 has recommended approval for Alteration in period of 3 years w.e.f. April 18, 2023.
the Object Clause of the Memorandum of Association
by insertion of new sub-clause 4B after clause 4A k) The Board of Directors at its meeting held on March
in Clause III. The shareholders have approved the 21, 2023 has approved the issuance of equity shares,
Alteration, by way of special resolution at the Extra- on rights issue basis, to the existing shareholders
Ordinary General Meeting held on 3rd March 2023 and for an aggregate value (including premium) not
the following clause is inserted in the Object Clause exceeding ₹ 7,50,00,00,000 (Rupees Seven Hundred
of the Memorandum of Association of the Company: and Fifty Crore Only), from time to time, during the
next six months from the date of the said meeting.
I) The Company has issued, allotted and redeemed Debentures, during the year, in various tranches, as per details
given below:
Secured Unsecured Perpetual Unsecured

Non-Convertible Sub-debt Non-Convertible Non-Convertible
Type of Debentures
Debentures (K in Crore) Debentures Debentures
(K in Crore) (K in Crore) (K in Crore)
Listed at Listed at Listed at Listed at

Listing
BSE and NSE BSE and NSE BSE and NSE BSE and NSE
Opening Balance as on 01st April 2022 11,923.30 2179.00 200.00 105.00
Issued during the year 6,870.50 - - 49.00
Sub. Total 18,793.80 2,179.00 200.00 154.00
Redeemed during the year 2,647.30 35.00 - -
Outstanding balance as on 31st March 2023 16,146.50 2,144.00 200.00 154.00

m)
The Company has issued Commercial Papers o) The Company has received a Show Cause Notice
(“CPs”), in one or more tranches, which were listed (“SCN”) dated August 03, 2022 from Reserve Bank
on NSE, in accordance with the provisions of SEBI of India under the Monitoring of Frauds in NBFCs
Operational Circular bearing no. SEBI/HO/DDHS/P/ (Reserve Bank) Directions, 2016, dated September
CIR/2021/613 dated August 10, 2021. As on March 29, 2016, on failure to comply with reporting of frauds
31, 2023, CPs amounting to ₹ 6,725 Crore were in eight instances involving amounts ranging from
outstanding and listed on NSE. ₹1 lakh to ₹ 13 Lakh within the stipulated timelines
of 3 weeks from their dates of detection and their
n) Securities and Exchange Board of India (“SEBI”) - reportings were made with delay of duration ranging
Show Cause Notice received on May 25, 2021 from 8 to 70 days. The Company has accordingly filed
(“SCN”) issued by SEBI to Aditya Birla Finance its response on August 10, 2022, with RBI, where the
Limited under Section 11(1), 11(4), 11B (1), 11B Company specified the reasons for the delay which
(2) and 11(4A) of the SEBI Act in the matter were during the period of complete lockdown in the
of CG Power and Industrial Solutions Limited Country. The Company also specified that the delays
(“CG Power”). caused were inadvertent and were due to factors
which were beyond the control of the Company and
In this regard the Company had submitted an interim the Company has also presented its submission
reply dated July 15, 2021 and a final reply dated July during personal hearing/s. The RBI, vide its Speaking
29, 2021 to SEBI denying the allegations levelled Order dated January 18, 2023, has communicated
against it in the SCN and prayed for the withdrawal not to impose any monetary penalty on the Company
of the SCN. SEBI, having regard to the facts and considering the challenges faced by the Company in
circumstances of the case, vide order WTM/AB/ filing Fraud Monitoring Report/s (FMR) on account of
CFID/CFID_1/20149 /2022-23 dated October 04 COVID-19 Pandemic and that the Company has been
2022 (SEBI Order) has imposed penalty of ₹ 1 Crore submitting FMR, on time, post-pandemic.
on Aditya Birla Finance Limited under Section 15HA
of the SEBI Act, 1992. The Company had then filed
an appeal against the said order on October 21,
2022, before the Securities Appellate Tribunal (SAT), Venkataraman K
against the said Order. Subsequently, by an order Associate Partner
dated February 27, 2023 (received by the Company
ACS:8897/COP:12459
on 1st March 2023), passed in the Appeal filed by
the Company, the Securities Appellate Tribunal (SAT)
For BNP & Associates Company Secretaries
granted a stay on the operation and effect of the
SEBI Order, subject to deposit of ₹ 50 Lakh (Rupees Firm Reg No: P2014MH037400
Fifty Lakh only) by the Company with SEBI within Peer Review No.-637/2019
3 weeks from the date of the Order. The Company UDIN: A008897E000275878
has accordingly deposited the said amount of ₹ 50
Date: May 09, 2023
lakhs with SEBI on March 06, 2023 and the matter
is pending. Place: Mumbai
Note: This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

Annexure A
TO THE SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
To,
The Members,
Our Secretarial Audit Report of even date is to be read along with this letter.
1.
The Company’s management is responsible for 5. We have not verified the correctness and appropriateness
maintenance of secretarial records and compliance with of financial records and Books of Accounts of the Company.
the provisions of corporate and other applicable laws,
6. We have obtained the management’s representation
rules, regulations and standards. Our responsibility is to
about the compliance of laws, rules and regulations and
express an opinion on the secretarial records produced for
happening of events, wherever required.
our audit.
7. Our Secretarial Audit Report is neither an assurance as to
2. We have followed such audit practices and processes
the future viability of the Company nor of the efficacy or
as we considered appropriate to obtain reasonable
effectiveness with which the management has conducted
assurance about the correctness of the contents of the
the affairs of the Company.
secretarial records.
Venkataraman K
3. We have considered compliance related actions taken by
the Company based on independent legal /professional Associate Partner
opinion obtained as being in compliance with law. ACS:8897/COP:12459
4. We have verified the secretarial records furnished to us on

For BNP & Associates Company Secretaries
a test basis to see whether the correct facts are reflected
therein. We also examined the compliance procedures Firm Reg No: P2014MH037400
followed by the Company on a test basis. We believe Peer Review No.-637/2019
that the processes and practices we followed, provide a UDIN: A008897E000275878
reasonable basis for our opinion.
Date: May 09, 2023
Place: Mumbai

Annexure IV
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
1. Brief outline on CSR Policy of the Company:

CSR Policy of the Company is enunciated in accordance with Section 135 of Companies Act, 2013 read with Corporate
Social Responsibility Rules, 2014 (as amended from time to time) and CSR Voluntary Guidelines issued by Ministry of
Corporate Affairs.
Our CSR Vision is ‘to actively contribute to the social and economic development of the communities in which we operate. In
so doing build a better, sustainable way of life for the weaker sections of society and raise the country’s human development
index (Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development)’
Our CSR Activities are undertaken broadly in the area of ‘Education’, ‘Health Care’, ‘Women Empowerment & Sustainable
Livelihood’ and ‘Sports’.
Our Board of Directors, our Management and all of our employees subscribe to the philosophy of compassionate care. We
believe and act on an ethos of generosity and compassion, characterized by a willingness to build a society that works for
everyone. This is the cornerstone of our CSR policy.
2. Composition of CSR Committee:

Number of
Number of
meetings of
Sl. meetings of CSR
Name of Director Designation/Nature of Directorship CSR Committee
No. Committee held
attended during
during the year*
the year
Members
1 Ms. Alka Bharucha1&2 Chairperson (Independent Director) 1 1
2. Mr. Ashwani Puri2 Chairman (Independent Director) 1 1
3. Mr. Ajay Srinivasan1 Member (Non-Executive Director) 1 0
4. Ms. Vishakha Mulye3 Member (Non-Executive Director) 2 2
5. Mr. Rakesh Singh Member (Managing Director & CEO) 2 2
Permanent Invitees
6. Mrs. Rajashree Birla Chairperson, Aditya Birla Centre for Community Initiatives 2 2
and Rural Development
7. Dr. Pragnya Ram Group Executive President, Corporate Communications and CSR 2 2
* No. of meetings held during tenure of Committee Members is considered
1 Ms. Alka Bharucha was inducted as a Member w.e.f. 2nd August 2022 in place of Mr. Ajay Srinivasan who ceased as Member

w.e.f 3rd August 2022.
2 Ms. Alka Bharucha was re-designated as a Chairperson w.e.f. 9 th March 2023 in place of Mr. Ashwani Puri who ceased as

Chairman due to end of his tenure as an Independent Director of the Company w.e.f 8th March 2023.
3 Ms. Vishakha Mulye was inducted as a Member w.e.f 21st October 2022.

3.
Web-link for the Composition of CSR Committee, CSR Policy and CSR projects approved by the Board are
disclosed on the website of the Company is www.abfl.adityabirlacapital.com
4.
Executive summary along with the web-link(s) of Impact Assessment of CSR Projects carried out in pursuance
of Sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable
(attach the report): Annexed
5. (a) Average net profit of the company as per sub-section (5) of section 135: ₹1,112.75 Crore
(b) Two percent of average net profit of the company as per sub section (5) of section 135: ₹22.26 Crore
(c) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years:
₹5.77 Crore
(d) Amount required to be set off for the Financial Year, if any: ₹0.10 Crore
(e) Total CSR obligation for the Financial Year [ (b) + (c) - (d) ]: ₹27.93 Crore
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project):
Current Project: ₹21.50 Cr.
Ongoing Project: ₹5.77 Cr.
(b) Amount spent in Administrative Overheads: ₹0.46 Crore
(c) Amount spent on Impact Assessment, if applicable: ₹0.29 Crore
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: ₹28.02 Crore
(e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (in ₹)
Total Amount Spent for Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule VII as per
the Financial Year (in ₹) CSR Account as per section 135(6) second proviso to section 135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
28,01,83,180 Nil Not applicable
(f) Excess amount for set-off, if any: Nil

Sl.
Particular Amount (in ₹)
No.
(1) (2) (3)
(i) Two percent of average net profit of the company as per sub-section (5) of section 135
(ii) Total amount spent for the Financial Year
(iii) Excess amount spent for the Financial Year [(ii)-(i)]
Nil
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)]

Annexure IV (Contd.)
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Year:
1 2 3 4 5 6 7 8
Sl. Preceding Amount Balance Amount Amount Spent Amount transferred to a Fund Amount Deficiency, if
No. Financial transferred to in Unspent CSR in the Financial as specified under Schedule VII remaining to any
Year(s) Unspent CSR Account under Year (in ₹) as per second proviso to sub- be spent in
Account under sub- section (6) section (5) of section 135, if any succeeding
sub- section (6) of section 135 Amount (in ₹) Date of Financial Years
of section 135 (in ₹) Transfer (in ₹)
(in ₹)
1 2021-2022 5,77,05,869 Nil 15,17,79,946 5,77,05,869 30/03/2022 5,77,05,869 Nil
2 2020-2021 Nil Nil 21,96,03,454 Nil NA Nil
3 2019-2020 Nil Nil 21,53,79,947 Nil NA Nil
8. W
hether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year: None
If Yes, enter the number of Capital assets created/ acquired
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:
Short particulars of the

property or asset(s) Pincode of
Sl. Amount of CSR Details of entity/ Authority/
[including complete the property Date of creation
No. amount spent beneficiary of the registered owner
address and location or asset(s)
of the property]
(1) (2) (3) (4) (5) (6)
CSR Name Registered
Registration address
Number, if
applicable
Not Applicable
(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/
Gram panchayat are to be specified and also the area of the immovable property as well as boundaries)
9. S pecify 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
Rakesh Singh Alka Bharucha

Managing Director & Chief Executive Officer Chairperson – CSR Committee
DIN – 07006067 DIN – 00114067

Impact Evaluation Summary

ADITYA BIRLA FINANCE LIMITED (ABFL) CSR PROGRAMS
ABFL Corporate Social Responsibility (CSR) policy focuses on reaching out to undeserved communities, for making a meaningful
difference in their quality of life. The CSR team ensures identification and selection of projects through community consultation
and needs assessment to prioritize areas with higher impact potential for change. On basis of this, it has chosen key focus areas
of education, healthcare, sustainable livelihood, and women development. The community-based projects are undertaken through
the Section 8 companies/NGO/Trusts for CSR activities.
CRISIL has evaluated 6 projects implemented through company’s CSR budget. These programs fall within the education,
healthcare, sustainable livelihood, and women development.
About CRISIL:
CRISIL is a global, agile and innovative analytics company driven by its mission of making markets function better. We are
India’s foremost provider of ratings, gradings, data, research, training, analytics and verification solutions. We have delivered
efficient solutions to over 100,000 customers. CRISIL’s businesses operate from India, US, UK, Argentina, Poland, China, Hong
Kong and Singapore.
CRISIL Limited is a stock exchange listed entity in India and was incorporated on 29th January 1987. CRISIL is majority owned
by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital
and commodity markets worldwide.
# Partners name Program Name Program Brief

1 Aga Khan Rural Improving Quality of Preschool The program focused on improving Anganwadi centers and schools through
Support Program and Primary School Education infrastructure development, prioritizing hygiene, sanitation, and BaLa Model wall
and Infrastructure paintings. It also included capacity building for workers and teachers to enhance
their skills in areas such as early childhood education, nutrition, and health.
2 Action Aid Nai Pahal Program The program focuses on re-enrollment and better attendance through
awareness campaigns, sensitization, and school infrastructure development.
3 Maharishi Ved Vyas Vedshree Tapovan School The organization works for promotion and preservation of Vedic Science, along
Pratishthan (MVVP) Infrastructure with development of Infrastructure.
4 WISH Foundation strengthening quality of service The program improves maternal care in PHCs by addressing infrastructure gaps,
delivery in PHCs enhancing staff skills through capacity building and mentoring.
5 Don Bosco DB Tech Skill Development DB Tech provides market-based skill training to school dropout youth in the age
Tech Society Training Institutes group of 18-35 years to find formal employment and income sources.
6 Indian Army Army Central Welfare fund The fund provides financial grant-based support to martyred soldier families for
education, marriage/remarriage, and mobility.
Evaluation Methodology
The impact analysis has been conducted using both quantitative and qualitative methods based on program structures.
• Quantitative tools- Survey based semi structured interviews.
• Qualitative tools- Key Informant Interviews (KIIs) and Focused Group Discussions (FGDs).
These tools were used to interact with key program stakeholders to identify the key program indicators along with key review
of program documents.
The framework for impact analysis has been developed under the guidance of Organization for Economic Cooperation and
Development Assistance Committee (OECD DAC) as follows:
• Relevance
• Coherence
• Effectiveness
• Efficiency
• Impact
• Sustainability

Impact Evaluation Summary (Contd.)
The indicators used to assess relevance, coherence, efficiency, and sustainability within our matrix are similar for all programs.
However, the parameters of effectiveness and impact are specific to each individual program or project.
The below section will provide a summary of key evaluation indicators for each program.
A. Aga Khan Rural Support Program- Improving Quality of Preschool and Primary Education and Infrastructure
The program involved infrastructure development in primary schools and ICDS centers, including construction or renovation
of water stations and toilets, as well as various wall paintings and library setups. ICDS centers also received e-learning
devices, including an LED TV, tablet, and cast device, with solar panels and other necessary equipment. Additionally, the
program provided training for Anganwadi workers on Nayi Pahal Modules and e-learning tools.
Partnership year: 2019-20
Location spread: Sakra Block, Muzaffarpur block, Bihar covering 62 schools with around 27706 students and 111 ICDS

centres covering 3886 students.
Sampled school: Out of 62 schools, 12 schools were sampled to interview 96 students, and out of 111 ICDS centres, 15
were sampled to interview teachers and parents.
Extremely satisfactory Satisfactory Not Satisfactory
Key Indicators Findings

• Program relevance was high since it catered for students from government school,
Relevance and Coherence wherein, infrastructure gaps existed in school. It also focused on ICDS centres which
• High program relevance were in dire need of infrastructure development.
• Adequate alignment with CSR, • It aligns strongly with the domain of education and infrastructure development of ABFL
Govt., and SDGs CSR policy. The program fulfilled all requirements from the MoU.
• The program is in line with several government schemes on education such as NEP
2020, RTE 2009, SSA and RMSA. In the case of Anganwadi development, it is in
lines with ICDS, BaLA, NIPCCD training program, Bal Swachhta Mission, and Samagra
Shiksha Abhiyan.
• The program worked towards quality education (SDG 4), industry, innovation and
infrastructure (SDG 9), gender equality (SDG 5), clean water and sanitation (SDG 6),
Reduce inequalities (SDG 10).
• The program had documentation for all program aspects such as program vision and
Efficiency objectives, strict reporting timelines and execution of annual and quarterly reports.
• Well-developed program processes • The program ensures need assessment of school and ICDS centres infrastructure
and KPIs requirements prior to execution, improving the efficiency of the initiative through a well-
• High quality program staff developed scoring tool.
• High program efficiency given the • The program had well developed key performance indicators
need assessment approach prior • The discussion with program staff revealed high awareness and involvement.
to execution In addition, around 95% of students found teachers to have adopted new
teaching techniques.
• The program covered several stakeholders from students, teachers, and panchayat
members. However, there remains scope of inclusion of parents.

• 100% of students were aware of infrastructure changes in school, and 100% of

Effectiveness Anganwadi workers stated that the changes were essential for the ICDS centres.
• Complete Beneficiary awareness • The program covered the students from government which has students from low-
• Widespread coverage of income groups and ICDS centres, which primarily function in remote and rural areas.
marginalized groups Further, the demographic profile of our sample showed that around 88% of students
• Improvement in core classroom belong to some marginalized groups such as SC, OBC or minority groups.
infrastructure of water, toilets, • The program covered 62 schools and 111 ICDS centres across Sakra block. It has been
walls etc. consistently growing its focus in the same block, making it an area of well-developed
• Improvement in ICDS infrastructure model schools and ICDS centres.
• Change in Anganwadi workers • The other program effective areas in school on improvement in drinking water
teaching style due to training facilities (97%), improvement in toilet facilities (100%), improvement and recall of
school paintings (100%), and improvement in libraries was well acknowledged by
the beneficiaries.
• In terms of ICDS centres, the improvement in drinking water facility (100%) and toilet
facility (100%) was prevalent widely. There was also change observed in Anganwadi
workers’ teaching style.
The program level impact is as per the students and teachers’ perception on,
Impact
• Increase in admission of students, which was clearly positive.
• Positive outlook among students of
• Improvement in students’ attendance, which was clearly positive.
the program outcome
• Increase in inclination to go to school, which was clearly positive due to improvement in
• Positive outlook among Anganwadi
school ambience.
workers on children’s attendance
and learning • Improvement in students’ performance in school was somewhat positive.
• Improvement in teaching • Similar positive effects were also observed in ICDS centres—with usage of pedagogy
techniques of Anganwadi workers techniques to early learning being clearly positive.
• Scope to improve digital usage • Usage of digital setup for early education was low among Anganwadi workers.
• There remains scope for the intervention to include some feedback systems with the
Sustainability key program stakeholders such as Anganwadi workers. The schools can have school
• Scope to collect feedback from management committees for maintenance of infrastructure.
key beneficiaries. • There is a need to add elements of more refresher training for usage of smart TVs and
• Need more refresher training tablets for learning.
sessions for usage of digital tools • The program has undertaken impact assessments.
B. Action Aid India- Nai Pahal Program

Action Aid’s Nai Pahal program identified and mainstreamed out of school children back to school with focus on re-enrollment
and better attendance through awareness campaigns and sensitization. Another program component was to improve school
infrastructure by constructing functional toilets, drinking water sources, and digital setups for students. In addition, the
program also facilitated learning through Mohalla classes during Covid-19 pandemic induced lockdown and restrictions.
Partnership year: 2019 -20
Location spread: 8 districts in Uttar Pradesh covering 106 schools.
Sampled school: Out of 106 schools, 12 schools were sampled to interview 96 students.


• Program relevance was high since it catered to government school, wherein
Relevance and Coherence infrastructure gaps existed. It also was in locations where dropouts were high.
• High program relevance • It aligns strongly with the domain of education and infrastructure development of ABFL
• Adequate alignment with CSR, CSR policy. The program fulfilled all requirements from the MoU.
Govt., and SDGs • The program is in line with several government schemes on education such as NEP
2020, RTE 2009, SSA and RMSA. It was also in line with governments School Har Din
Aayen (SHARDA) initiative.
• The program worked towards quality education (SDG 4), reduced inequality (SDG 10)
and infrastructure (SDG 9) and gender equality (SDG 5)
• The program had documentation for most program aspects such as program vision and
Efficiency objectives, and execution of annual and quarterly reports.
• Decent documentation of activities • The program had well-developed KPIs, especially in terms of bringing dropout students
• Well-developed KPIs back to school.
• Solid engagement of stakeholders • The several activities conducted by the students led to deep engagement of
stakeholders with the program goals. Further, the inclusion of family and community
was efficient in building a system for achievement of program goals.
• Around 15% of students had re-enrolled in school due Action Aids efforts.
Effectiveness
• Among all re-enrolled students, the prominent reasons to join were encouragement
• Led to re-enrollment of students to students to get back to school (74%) and awareness to parents and community
• Ensured continued education members on education (64%).
through monitoring and • The re-enrolled students reported high monitoring (71%) by Action aid to ensure
mohalla classes continued learning of dropout students.
• Improvement in toilet facilities • Around 33% of students engaged in Mohalla classes during covid-19—and appreciated
• Usage of smart classes to the continuation of education during testing times.
some extent • Infrastructure development was prominent in terms of toilets and digital classrooms.
The program level impact is measured as per the students and teachers’ perception on,
Impact • Increase in admission of students, which was clearly positive.
• Improvement in key • Improvement in students’ attendance, which was clearly positive.
impact indicators
• Improvement in inclination to go to school, which was clearly positive.
• Decline in dropouts, which was clearly positive.
• Improvement in student performance or understanding of concept, which was
somewhat positive.
• The program can develop feedback systems for beneficiaries.
Sustainability
• The program's engagement with parents and the community, along with regular
• Decent engagement of parents and
monitoring, is an effective and sustainable approach to building awareness around
community for spreading awareness
education. This approach has the potential to create a long-lasting impact and
around education
bring about positive change among community members. It only ensures active
• Can create systems to ensure stakeholder participation and promotes ownership and responsibility towards the
maintenance of assets community’s children.
• In terms of infrastructure maintenance, the program can create active committees in
school and collect maintenance funds to ensure sustainability.

C. Maharishi Ved Vyas Pratishthan- Vedshree Tapovan School Infrastructure Development

The CSR program contributed to building the Vedshree Tapovan School by MVVP. The school is a social institute dedicated
to the research and propagation of vedic knowledge. The school’s mission is to preserve national heritage through education
and vocational skills training for students.
Partnership year: 2019
Location spread: Moshi, Pune
Sampling: 30 students and 3 teachers at school
• The school has a clear objective of promoting and preserving the Vedic literature of India.
Relevance and Coherence • It aligns strongly with the domain of education and infrastructure development of ABFL
• Clear objective of promoting CSR policy.
vedic sciences • The program is in line with the Ministry of culture to preserve ancient learnings.
• Aligns with CSR policy, govt. • The program worked towards quality education (SDG 4)
and SDG to some extent
• The program had documentation for certain program aspects such as program vision
Efficiency and objectives.
• Decent process • The program did not need any KPIs to be tracked.
of documentation • The program does not have any data collection requirements except student
• High knowledge and interest education tracking.
of staff • The discussion with program staff revealed high knowledge and interest in Vedic sciences.
• Efficient usage of funds • The program covers all stakeholders possible.
on infrastructure with low • The school efficiency is also mapped by its fund’s distribution. Around 90% of the school's
admin expense funds are used to benefit students, such as an improved library, kitchen service, hostel etc.
Only 10% are used for administrative purposes.
• The school infrastructure is highly appreciated by the beneficiaries.

Effectiveness • The classroom infrastructure, stay, dining hall, meditation centre, and other key spaces are
• Effective usage of school used by the students effectively.
spaces by students for learning • The school is known to be the best in India for vedic education in terms of both learning and
vedic science infrastructure. It has dedicated spaces to ensure learning similar to the past.
The program level impact is measured by the satisfaction of students with the school
Impact infrastructure—which was very high. The students stated that all spaces are used for the
• High satisfaction of students dedicated tasks.
by infrastructure
The school has been constructed with an intention of long-term prevalence and sustenance. In
Sustainability this case, the sustainability of the school will be successful with a larger intake of students and
• School premise is sustainable regular maintenance of the school building.
in nature and aims for
perseverance of culture

D. WISH Foundation- Strengthening quality of service delivery in PHCs

WISH Foundation undertook the initiative of strengthening labour room infrastructure of 30 PHCs of Rajasthan, along with
staff training and mentoring support. The intention of the program was to improve the labour room services, and provide
quality antenatal, birth, and postnatal care to the young mothers while ensuring safety of new-born infants.
Location spread: 30 PHCs in 3 districts (17 PHCs in Banswara, 11 in Rajsamand, 2 in Baran) in Rajasthan.
Sampling: Out of the 30 PHCs, 10 PHCs were sampled to survey 56 patients (pregnant mothers and new mothers)

• The program aims to enhance PHC labor rooms, utilized by marginalized and lower-
Relevance and Coherence income groups for ante-natal care and delivery. It provides equipment and training to
• Extremely high relevance address service delivery gaps, resulting in high program relevance.
• Solid alignment with CSR, • It aligns with the healthcare domain of ABFL CSR Policy.
Government and SDGs • It aligns with several programs of government of India for materal health such as
PMSMA, JSSK, NHM, LaQshya, etc.
• The program aligns with good health and well-being (SDG 3), gender equality (SDG 5),
reduced inequalities (SDG 10), partnership for the goals (SDG 17)
Efficiency objectives, strict reporting timelines and execution of annual and quarterly reports.
• Program ensures smooth and • The selection of PHCs for strengthening was based on detailed needs assessment, which
efficient process for selection involved using checklists and identifying gaps. This led to the selection of those PHCs that
of PHCs were in dire need of labor room and corresponding equipment.
• Use of equipment’s improve the • The program provided several pieces of equipment, which make check-ups, diagnostic
efficiency of service delivery at the testing, and other procedures smoother and more efficient for pregnant mothers.
PHC level
• The discussion with program staff revealed high involvement and satisfaction
• High engagement of program staff from program.
• Scope to include • The program covered several stakeholders from PHCs doctors and staff to government
additional stakeholders officials. However, there remains scope of improvement by inclusion of grassroot level
ASHA workers.
• Beneficiary awareness regarding the program was low in terms of awareness about
Effectiveness NGOs/ABFL, but high in terms of awareness about changes in labor rooms, such as the
• High beneficiary awareness on labor availability of more equipment (90%), additional tests for pregnant mothers (80%), and
room changes improved knowledge of nurses/doctors (80%).
• High program effectiveness in • The program’s effectiveness is further visible by high satisfaction by both pregnant
improving labor room services mothers and mothers who have recently given birth on hospital services. Around 98% of
pregnant mothers intended to give birth in the same PHC.
• The program’s effectiveness was also visible in discussions with government officials who
stated that the equipment’s provided such as labor table, room heaters, suction apparatus,
and surgical instruments were extremely useful and relevant.
• The program staff expressed a high level of satisfaction with mentoring visits, as they
provided an opportunity for refreshing certain protocols related to hygiene.
• Certain equipment’s such as Tablets with Prasav App require more training to be used.


The program level impact is measured as per the parent’s and other stakeholders’ indications
Impact on,
• High impact of program increasing • Recognition of labor room change among repeat mothers, which was
enrollment and other critical areas completely positive.
of maternal health.
• Increased enrollment for ANC, which was completely positive.
• Increased enrollment for childbirth, which was completely positive.
• Better recognition of high risk and complicated cases, which was completely positive.
• Low maternal and infant mortality, which was somewhat positive.
• The program has the scope to develop a formal feedback system for beneficiaries. An
Sustainability element of ASHA worker within the program design can be useful for this purpose.
• Program has the scope to • The program has an undertaken internal impact assessment.
utilize ASHA workers as a
• The program has provided mentoring and guidance sessions to the PHCs, to ensure
program stakeholder for
sustenance of practices.
feedback mechanism
• Program has focused on
mentoring and guidance of PHCs
E. DB Tech Skill Development Training Institutes

DB Tech Skill Development training institute provides quality training programs to equip dropout youth with market relevant
skills and knowledge to find jobs and income sources. The key areas for training are Beauty & Wellness, Electrical General,
Electronics & IT Hardware, Information Technology Enabled Services, IT-ITES, Office Management, Textile and Clothing
Industry and Tourism and Hospitality
Location spread: Bhopal, Indore, Ashta Sehore, Ratlam and Trombay
Sampling: 70 trainees were surveyed across all centres
• The program’s focus on imparting appropriate skills and training is highly relevant to
Relevance and Coherence the current needs of marginalized and lower-income youth in India who face challenges
• Extremely high relevance in accessing quality employment opportunities. By doing so, it aims to reduce the
• Solid alignment with CSR, skills gap and improve employment prospects for these groups, making it an essential
Government and SDGs intervention in promoting inclusive growth and development.
• It aligns with the skill development domain of the CSR policy.
• It aligns with several government schemes around skilling such as PMKVY, NSDC, Skill
India Mission, DDU-GKY, NAPs etc. Additionally, the government is actively looking for
such partnerships between NGOs, CSRs and skill development centres.
• The program aligns with quality education (SDG 4), decent work and economic growth
(SDG 8), Industry, innovation, and infrastructure (SDG 9), reduced inequalities (SDG 10),
and partnership for goals (SDG 17).


Efficiency objectives, and execution of annual and quarterly reports.
• Effective mobilization process • The program utilized an effective mobilization strategy, with program staff visiting
• Motivated and quality program staff villages and slums to raise awareness about the skilling program and its benefits. They
• Extensive stakeholder coverage also provided counseling services, assessed student interest and commitment before
admissions, resulting in better efficiency and reduced dropouts.
• 100% of trainee’s had positive feedback on the program staff/trainers. Additionally,
discussions with trainers also revealed high motivation and satisfaction from the work.
• The program covers several stakeholders from students, parents, to industry connections
for placements.
• All beneficiaries had positive feedback about the course content, with 84% indicating
Effectiveness that it was well-aligned with market needs and 82% stating that it provided
• High beneficiary satisfaction from practical exposure.
the program outcome • All beneficiaries experienced improvement in soft skills, with 90.6% indicating
confidence boost in speaking and 88% indicating confidence boost for interviews.
• All beneficiaries who received placements did not have any source of income prior to
the intervention. Now, 65% are earning between INR 5000-8000 and the rest 35%,
earning between INR 8001-15000.
• All beneficiaries found the program to be beneficial for their careers and will be
recommended to others.
The program level impact is measured as per the trainee’s and other stakeholders’ indications on,
Impact
• Learnt relevant job market skills, which were completely positive.
• High impact of program in reducing
anxiety of illness • Improvement in income, which was completely true for those who got placed.
• High impact of program in making • Improvement in standard of living, which was true to some extent.
cancer care affordable • Development of future aspirations, which was completely true.
• Satisfaction with career, which was completely true
• The program had a feedback system for beneficiaries.

Sustainability
• The program conducted internal impact assessments.
• Decent systems for sustainability
• The program has the scope to develop alumni/peer groups for smooth tracking after
• Scope to develop alumni groups completion of training and placements.

F. Indian Army Central Welfare Fund

The fund provides financial grant-based support to martyred soldier families for education, marriage/remarriage, and mobility.
Sampling: 53 family members were surveyed across India
• The program focused on providing grants to martyred soldiers’ families for education,
Relevance and Coherence marriage/remarriage, and mobility. The relevant of the program is through its capacity
• Relevant in terms of providing to provide solidarity, and support.
solidarity and support • It aligns with several government schemes such as AGIF, AWFBC, CWF.
• Alignment with Government • The program aligns with Peace, justice, and strong institutions (SDG 16).
and SDG
• The program had documentation of key program components such as veterans list
Efficiency and applications.
• Decent documentation • The program can consider increase in pace of grant process—as the gap between
• Potential to increase the pace of application and disbursement is high to some extent.
grant disbursal • The stakeholder engagement is decent.
• Decent stakeholder engagement
• The outreach to beneficiary group was high.

Effectiveness
• The process of receiving grant was smooth to some extent.
• High beneficiary satisfaction from
the program outcome • The education grant was extensively used for the purpose.
• The marriage grant was used for the purpose; however, the beneficiaries were
relatively lower.
• The computer grant facilitated some portion of funds to purchase computers.
The program level impact is as per the beneficiaries and other stakeholders’ indications on,
Impact
• Reduction in financial burden, which was true to some extent.
• High sense of solidarity
among beneficiaries • Received a sense of solidarity, which to was completely true.
• Support to improve computer skills was experienced by those who received the grant.
• Led to support for education to those who received education grant.
Sustainability • The grant-based program in its design does not seem to have sustainability as a criterion.

Corporate Governance Report
OUR VISION
"To be a leader and role model in helping people meet their Company also endeavours to be a role model by fair dealing, inter
aspirations leveraging our broad based financing options." alia, with its employees, customers, partners and Regulators.
Your Company continuously strives to achieve excellence
Your Company aspires to be a leader by being amongst the top in Corporate Governance through its values – Integrity,
3 NBFCs in Book size, profitability and Retail book size. Your Commitment, Passion, Seamlessness and Speed.
OUR VALUES
Integrity Commitment Passion Seamlessness Speed
Acting and t aking On the foundation An energetic, intuitive Thinking and working Responding to internal
decisions in a manner of integrit y, doing zeal that arises from together across and external customers
t h a t is f a ir a n d all that is needed emotional engagement f u nc tio n a l grou ps, w it h a s e n s e of
honest. Following the to deliver value to with the organisation hierarchies, businesses urgency. Continuously
highest standards of all stakeholders. In that makes work joyful and geographies. striving to finish before
professionalism and the process, being and inspires each one Leveraging diverse deadlines and choosing
being recognised for accountable for our own to give his or her best. A c o m pete n cie s a n d the best rhythm to
doing so. Integrit y actions and decisions, voluntary, spontaneous perspectives to garner optimise organisational
for us means not those of our team and and relentless pursuit the benefits of synergy efficiencies.
only financial and those on the part of the of goals and objectives while promoting
intellectual integrity organisation for which with the highest level of organisational unity
but encompasses all we are responsible. energy and enthusiasm. through sharing and
other forms as are collaborative efforts.
generally understood.

COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE

“Our values provide us with our roots and they provide us with our wings.”
Mr. Kumar Mangalam Birla,

Chairman, Aditya Birla Group
The Aditya Birla Group is one of the pioneers in the field of The details of compliance with the requirements stipulated
Corporate Governance. As a part of the Group, your Company under Chapter IV read with Schedule V of the Securities and
is committed to continuously adopt and adhere to the best Exchange Board of India (Listing Obligations and Disclosure
governance practices, to achieve the goal of making the Requirements) Regulations, 2015 ("SEBI Listing Regulations")
Company a value-driven organisation. to the extent applicable and RBI circular no. DOR.ACC.
REC.No.20/21.04.018/2022-23 dated 19 th April 2022 on
Your Company is a material subsidiary of Aditya Birla ‘Disclosures in Financial Statements- Notes to Accounts of
Capital Limited. NBFCs’ under their Scale Based Regulation (SBR), as applicable
during the financial year ended 31st March 2023 ("financial year
Your Company is one of the young and new age business ventures under review”) are as follows:
of Aditya Birla Group having a strong parentage and is part of
a leading financial services conglomerate. It is a mix of solid I. BOARD OF DIRECTORS
traditional and cultural foundations along with the right perspective
Composition
to cater to the evolving financial needs of its customers.
The Board of Directors of the Company (“the Board”)
The Company’s governance practices are a product of self- comprises of 7 (seven) Directors including 2 (two) Non-
desire, reflecting the culture of trusteeship that is deeply Executive Directors, 1 (one) Managing Director & CEO and
ingrained in its value system and reflected in its strategic 4 (four) Independent Directors, of whom one is a Woman
thought process. At a macro level, your Company’s governance Director. The Companies Act, 2013 mandates one-third
philosophy rests on five basic tenets, viz., Board accountability of the total number of Directors as Independent Directors
to the Company and Members, strategic guidance and effective for the Company. The composition of the Board is in
monitoring by the Board, protection of minority interests and conformity with the requirements of the Companies Act,
rights, equitable treatment of all Members and transparency 2013 (“the Act”) and Regulation 17 of the SEBI Listing
and timely disclosures. Regulations. In terms of the provisions of the Act and the
SEBI Listing Regulations, the Directors submit requisite
The Corporate Governance framework of your Company is disclosures regarding the positions held by them on the
based on an effective and independent Board, separation of Board and/or Committees of other Companies, from
the Board’s supervisory role from the Senior Management team time to time. All the Independent Directors as per their
and constitution and functioning of the Board Committees, as disclosures, have confirmed their compliance with the Act
required under applicable laws. and SEBI Listing Regulations.
The Board functions either as a full Board or through various All Independent Directors on the Board are Non-Executive
Committees constituted to oversee specific functions. The Directors as defined under the Act and SEBI Listing
Senior Management provides your Board with detailed reports Regulations. The maximum tenure of the Independent
on the Company’s performance periodically. Directors is in compliance with the Act and SEBI Listing
Regulations. All the Independent Directors have confirmed
that they meet the criteria of independence as stipulated
COMPLIANCE WITH CORPORATE GOVERNANCE under Section 149(6) of the Act and Regulation 16(1)(b)
GUIDELINES of the SEBI Listing Regulations and have submitted the
Your Company is in compliance with the requirements stipulated declaration under Section 149(7) of the Act. Based on
under the applicable Regulatory provisions with respect to the disclosures received from the Independent Directors,
corporate governance.

Corporate Governance Report (Contd.)
it is hereby confirmed that in the opinion of the Board, the Independent Directors fulfil the conditions specified under the
Act and SEBI Listing Regulations and are independent of the management and are also in compliance with the limit on
Independent Directorships of listed Companies as prescribed under Regulation 17A of the SEBI Listing Regulations. The
Independent Directors have also submitted a declaration to the Company confirming that they have registered themselves
in the Independent Directors’ Database.
The brief profile of the present Directors on the Board is available on the Company’s website at https://abfl.adityabirlacapital.
com and is also mentioned at the beginning of this Annual Report.
Details of changes in composition of the Board during the Financial year 2021-22 & 2022-23:
Capacity
Nature of change
Sl. (i.e., Executive/ Non-Executive/
Name of Director DIN (resignation, Effective date
No. Chairman/ Promoter
appointment)
nominee/ Independent)
1. Mr. Kamlesh Rao Non-Executive Director 07665616 Appointment 07-07-2021
2. Mr. Baldev Raj Gupta Independent Director 00020066 Cessation of term as an 27-07-2021
Independent Director
3. Mr. Ajay Srinivasan Non-Executive Director 00121181 Resignation 03-08-2022
4. Ms. Vishaka Mulye Non-Executive Director 00203578 Appointment 21-10-2022
5. Mr. Darius J Kakalia Independent Director 00029159 Cessation of term as an 08-03-2023
6. Mr. Jitender Balakrishnan Independent Director 00028320 Independent Director
7. Mr. Ashwani Puri Independent Director 00160662
8. Mr. Nagesh Pinge Independent Director 00062900 Appointment 09-03-2023
9. Mr. Rajat Jain Independent Director 00046053 Appointment 09-03-2023
None of the Independent Director(s) had resigned before the expiry of their term.
The details of the Directors of the Company with regard to their outside Directorships, Committee positions, including that
in listed entities, as on 31st March 2023, are as follows:
Outside Committee Names of other No. of shares
Category/Capacity No. of outside positions held in listed entities held in and
Name of Director of Directorship Directorship(s) Audit Committee where Director is convertible
DIN and Stakeholders
the Director Since held in other Public an Independent instruments
in your Company companies1 Relationship Committee Director (excluding held in the
2 3 the Company) 3 NBFC
Member Chairperson
Ms. Vishakha Mulyea 21.10.2022 Non-Executive 00203578 6 5 0 - Nil
Non-Independent
Mr. Ajay Srinivasanb 31.07.2007 Non-Executive 00121181 NA NA NA NA Nil
Non-Independent
Mr. Darius J Kakaliac 15.03.2001 Independent 00029159 NA NA NA NA Nil
Mr. Jitender Balakrishnanc 20.07.2010 Independent 00028320 NA NA NA NA Nil
Mr. Ashwani Puric 13.09.2010 Independent 00160662 NA NA NA NA Nil
Mr. Rakesh Singh 23.07.2019 Managing 07006067 1 2 0 - Nil
Director & CEO
Mr. Subhash Chandra Bhargava 25.01.2019 Independent 00020021 7 8 0 Aditya Birla Capital Nil
Limited; A K Capital
Services Ltd.
Ms. Alka Bharucha 27.03.2015 Independent 00114067 8 10 3 Ultratech Cement Nil
Ltd.; Hindalco
Industries Ltd.;
Orient Electric Ltd.;
Honda India Power
Products Ltd.;
Birlasoft Ltd.;
Aditya Birla Sun
Life AMC Limited

Outside Committee Names of other No. of shares

Category/Capacity No. of outside positions held in listed entities held in and
Name of Director of Directorship Directorship(s) Audit Committee where Director is convertible
DIN and Stakeholders
the Director Since held in other Public an Independent instruments
in your Company companies1 Relationship Committee Director (excluding held in the
2 3 the Company) 3 NBFC
Member Chairperson
Mr. Kamlesh Rao 07.07.2021 Non-Executive 07665616 3 1 - - Nil
Non-Independent
Mr. Rajat Jaind 09.03.2023 Independent 00046053 3 1 - Mahindra Holidays Nil
& Resorts India
Limited;
Fino Payments
Bank Limited
Mr. Nagesh Pinged 09.03.2023 Independent 00062900 9 9 3 Goa Carbon Limited; Nil
Automobile
Corporation of Goa
Limited;
Arvind Fashions
Limited
Notes:
1. Excluding Directorship in the Company, Foreign Companies, Private Limited Companies and Companies formed under
Section 8 of the Act.
2. Membership(s) in all Public Limited Companies including ABFL is considered.
3. Only equity listed companies are considered.
4. Other details like no. of Board meetings held & attended and Directors remuneration are in later part of this report.
5. a Appointed w.e.f. 21st October 2022
b Ceased to be a director w.e.f. 3rd August 2022
c Retired as Directors due to end of tenure w.e.f. 8th March 2023
d Appointed w.e.f. 9th March 2023
Brief Profile of Directors:

Sr.
Name of Director Qualification Field of Specialisation
No.
1. Ms. Vishakha Mulye Chartered Accountant Banking & Financial Services
2. Ms. Alka Bharucha B.A. (Hons) and LL.B from University of Bombay & Legal
LL.M from University of London
3. Mr. Subhash Chandra Bhargava Chartered Accountant Investment and Financial Services
4. Mr. Rajat Kumar Jain Post Graduate from IIM-Ahmedabad Incubation services to early stage
BTech from IIT, Delhi tech startups
5. Mr. Nagesh Pinge Chartered Accountant and Law Graduate from India. Completed Ethics, Corporate Governance,
Executive Education Program from The Stephen M Ross School Risk Management & Internal
of Business of the University of Michigan, USA Audit
6. Mr. Rakesh Singh Post-Graduation in International Relations from University Banking & Financial Services
of Lucknow; Advance Management Program from Harvard
Business School & Executive Program in Business Management
from Indian Institute of Management, Calcutta
7. Mr. Kamlesh Rao MBA, Narsee Monjee Institute of Management Studies; B.E. Banking & Financial Services
Instrumentation, Vivekanand Education Society’s Institute of
Technology

The Board members collectively display the following and distribution of all papers submitted to the Board and
qualities: Committees thereof for consideration. The Agenda of
the Board/ Committee Meetings is set by the Company
- Integrity: fulfilling a Director’s duties and responsibilities;
Secretary in consultation with the Non-Executive Director
- Curiosity and courage: asking questions and persistence and Managing Director & Chief Executive Officer of the
in challenging management and fellow board members Company. Agenda papers are circulated a week prior to
where necessary; the date of the Meeting to enable the Board/ Committee
- Interpersonal skills: working well in a group, listening Members take informed decisions at the Meetings. The
well, tact and ability to communicate their point of Agenda for the Board and Committee Meetings covers
view frankly; items set out as per the applicable regulations, directions
- Interest: in the organisation, its business and the people; and guidelines. Prior approval is also obtained from the
Board for circulating agenda items with shorter notice
- Instinct: good business instincts and acumen, ability to
for matters that are in the nature of Unpublished Price
get to the crux of the issue quickly;
Sensitive Information (“UPSI”).
- Belief in diversity;
- Active participation: at deliberations in the Meeting 7 (Seven) Board Meetings were held during the financial
year under review.
The Board of Directors of your Company are professionals,
possessing wide experience and expertise in their areas The details of the Board Meetings held during the financial
of function and with their collective wisdom fuel your year under review, dates on which held, Board strength and
Company’s growth. number of Directors present are as follows:
No. of Directors
Board’s Functioning and Procedure Date of Board Meeting Board Strength
Present
Your Company’s Board plays a pivotal role in ensuring good 11th May 2022 8 7
governance and functioning of the Company. The Board’s 27th June 2022 8 7
role, functions, responsibilities and accountabilities are 2nd August 2022 8 6
well defined. All relevant information is regularly placed 28th September 2022 7 7
before the Board. The Members of the Board have 5th November 2022 8 8
complete freedom to express their opinion and decisions 31st January 2023 8 8
are taken after detailed discussions. 21st March 2023 7 6
The Board has unfettered and complete access to any

The Board meets at least once in every quarter to review
information within your Company. Members of the Board
the quarterly results and other items on the agenda and
have complete freedom to express their views on agenda
additional Meetings are held to address specific needs and
items and can discuss any matter at the Meeting with
business requirements of your Company. The information
the permission of the Chairperson. The Board periodically
as required under Schedule V (C) of the SEBI Listing
reviews all the relevant information, which is required to
Regulations is made available to the Board.
be placed before it pursuant to Regulation 17 read with
Part A of Schedule II of the SEBI Listing Regulations and
The Company makes available video conferencing facility or
in particular reviews and approves corporate strategies,
other audio visual means for attending the Meetings of the
business plans, annual budgets and capital expenditure,
Board and Committees. The notice of Board/ Committee
etc. The Board provides strategic direction and oversight
Meetings is given in advance to all the Directors (other than
to ensure that your Company is managed in a manner that
if held by shorter notice for which consent is obtained).
fulfils stakeholders’ aspirations and societal expectations.
The Company Secretary is responsible for collation, review

The details of attendance of each Director at the Board Meeting(s) held during the financial year under review and at the
previous Annual General Meeting (“AGM”) of the Members of the Company held on 25th August 2022, held on MS Teams,
are as follows:
No. of Board Meetings Attended
Name of the Director
Held Attended last AGM
Ms. Vishakha Mulye# 3 3 No#
Mr. Ajay Srinivasan* 3 1 No*
Mr. Darius J Kakalia& 6 6 Yes
Mr. Jitender Balakrishnan& 6 6 Yes
Mr. Ashwani Puri& 6 6 Yes
Ms. Alka Bharucha 7 6 Yes
Mr. Subhash Chandra Bhargava 7 7 No
Mr. Rakesh Singh 7 7 Yes
Mr. Kamlesh Rao 7 5 No
Mr. Rajat Jain$ 1 1 No
Mr. Nagesh Pinge$ 1 1 No
# Appointed with effect from 21st October 2022
* Resigned with effect from 3rd August 2022
& Tenure as Independent Director expired with effect from 8th March 2023
$ Appointed with effect from 9 th March 2023
Code of Conduct for Board Members and Senior The Directors are familiarised with your Company’s
Management businesses and its operations by providing business updates
of its products at its periodic Board Meeting. Interactions
In compliance with Regulations 17(5) and 26(3) of the SEBI
are held between the Directors and Senior Management of
Listing Regulations, the Company has adopted a Code of
your Company from time to time. Directors are familiarised
Conduct for the Board Members and Senior Management
with the organisational set-up, functioning of various
of the Company (“the Code”). The Code is applicable to
departments, internal control processes and relevant
all the Board Members and Senior Management of the
information pertaining to your Company. The details of
Company. The Code is available on your Company’s
the said familiarisation programmes are available on your
website at https://abfl.adityabirlacapital.com.
Company’s website at https://abfl.adityabirlacapital.com.
The Senior Management Personnel of the Company have

Performance evaluation of the Board
made disclosures to the Board confirming that there are
no material financial transactions between them and the A formal evaluation mechanism has been adopted for
Company, that could have potential conflict of interest with evaluating the performance of the Board, the Committees
the Company at large. thereof, individual Directors and Chairperson of the Board.
The evaluation is based on criteria which include, amongst
All the Board Members and Senior Management Personnel others, providing strategic perspective, time devoted
have confirmed compliance with the Code during the and preparedness for the Meetings, quality, quantity
financial year under review and a declaration to that effect and timeliness of the flow of information between the
signed by the Managing Director & CEO of the Company Board Members and the Management, contribution at
forms part of this Annual Report. the Meetings, effective decision-making ability, role and
effectiveness of the Committees, etc. The Directors duly
Board Induction, Training and Familiarisation completed and submitted the questionnaires providing
feedback on the functioning of the Board as a whole,
A letter of appointment together with an induction kit is
Committees and Chairperson of the Board.
given to the Independent Directors at the time of their
appointment setting out their roles, functions, duties
Further details are mentioned in the Board’s Report.
and responsibilities.

Performance Evaluation Criteria for Independent and preventing misuse of unpublished price sensitive
Directors information. All Designated Persons of the Company
(as defined under the Insider Code) are covered under
The Directors other than Independent Directors of your
the Insider Code, which provides inter alia for periodical
Company evaluate the following:
disclosures and obtaining pre-clearances for trading in the
• performance of Independent Directors Non-Convertible Debentures (NCDs) of your Company.
• fulfilment of the independence criteria as specified
in SEBI Listing Regulations, the Act and their Your Company has in place, a manual tracking mechanism
independence from the management for monitoring trade in the NCDs of the Company by the
Designated Persons identified under the Insider Code.
The evaluation is based on the following criteria as to how
Further, a structured digital database is maintained, which
an Independent Director:
contains the names and other particulars as prescribed,
1. Invests time in understanding the Company and its of the people covered under the Insider Code. The Board
unique requirements; has also adopted a Code of Practices and Procedures for
2. Brings in external knowledge and perspective to the Fair Disclosure of Unpublished Price Sensitive Information
table for discussions at the Meetings; (“UPSI”) which also includes details of your Company’s
3. Expresses his/her views on the issues discussed at policy for determination on ‘legitimate purposes’ as
the Board; and per the requirements of the SEBI (Prohibition of Insider
Trading) Regulations and is available on the website of the
4. Keeps himself/herself current on areas and issues
Company at https://abfl.adityabirlacapital.com.
that are likely to be discussed at the Board level.
The Board and Designated Persons covered under the

Separate Meeting of Independent Directors Insider Code have affirmed compliance with the Insider
In accordance with the provisions of Schedule IV of the Act Code. The PIT Regulation Committee was constituted
and Regulation 25 (3) of the SEBI Listing Regulations and for the purpose of monitoring compliance with the
SS 1 - 2.3 of the Secretarial Standard on the Meetings of aforesaid Code. Mr. Ankur Shah, Company Secretary is
Board of Directors, a Meeting of the Independent Directors the “Compliance Officer” in terms of the Insider Code.
of your Company was held on 21st February 2023 without
the presence of the Non-Independent Directors and the The Audit Committee reviews compliance with the
Members of the Management. The Meeting was attended provisions of the Securities and Exchange Board of
by 4 (Four) Independent Directors. They discussed matters, India (Prohibition of Insider Trading) Regulations, 2015
including the performance/ functioning of the Company, confirming that the systems for internal control for the
reviewed the performance of other Non-Executive Directors purpose are adequate and are operating effectively.
and the Managing Director & CEO, assessed the quality,
quantity and timeliness of flow of information between the
Management and the Board, that is necessary for the Board
II. COMMITTEES
to effectively and reasonably perform their duties, etc. Your Board has constituted the Committees with specific
terms of reference as per the requirements of the Act,
Prohibition of Insider Trading SEBI Listing Regulations, RBI’s Master Directions and
other applicable provisions. The Board accepted all
In terms of the provisions of the Securities and Exchange
recommendations of the Committees of the Board, during
Board of India (Prohibition of Insider Trading) Regulations,
the financial year under review.
2015 and SEBI (Prohibition of Fraudulent and Unfair Trade
Practices relating to Securities Market) Regulations, 2003,
The Board Committees play a vital role in the effective
your Company adopted a Code of Conduct to Regulate,
compliance and governance of the Company in line with
Monitor and Report trading by Designated Persons in
their specified and distinct terms of reference and role
listed or proposed to be listed securities of the Company
and responsibilities. The Chairpersons of the respective
(“the Insider Code”). The Insider Code aims at preserving
Committees report to the Board on the deliberations

and decisions taken by the Committees and conduct of the Committee have been accepted by the Board, during
themselves under the supervision of the Board. The the year under review.
minutes of the Meetings of all Committees are placed
before the Board for its perusal on a regular basis. The erstwhile Chairman of the Audit Committee, Mr. Ashwani
Puri, attended the Annual General Meeting of the Company
Your Board has presently constituted the following held on 25th August 2022.
Committees including pursuant to the provisions of the
Act, SEBI Listing Regulations and RBI Master Directions: The Audit Committee monitors and effectively supervises
1. Audit Committee; your Company’s financial reporting process with a view
to provide accurate, timely and proper disclosures and
2. Nomination and Remuneration Committee;
maintain the integrity and quality of financial reporting.
3. Stakeholders Relationship Committee;
4. Risk Management Committee; The terms of reference and powers of the Audit Committee
5. Corporate Social Responsibility Committee; are as specified in Section 177 of the Act and Regulation 18
read with Part C of Schedule II of the SEBI Listing Regulations
6. Asset Liability Management Committee;
to oversee any activity within its terms of reference, seek
7. PIT Regulation Committee; and information from any employee, obtain outside legal or other
8.
IT Strategy & Information Security Steering professional advice and secure attendance of outsiders with
Committee. relevant expertise, as considered necessary. The terms
of reference broadly include oversight of the Company’s
The details of the Committees are elaborated hereunder: financial reporting process and disclosure of its financial
information, review of financial statements, review of
1. Audit Committee compliances and review of systems and controls, approval
A qualified and independent Audit Committee has been of transactions with related parties, review compliance with
constituted pursuant to the provisions of Section 177 of SEBI (Prohibition of Insider Trading) Regulations, 2015.
the Act, Regulation 18 of the SEBI Listing Regulations and
RBI Master Directions. During the financial year under review, the Audit Committee
reviewed the internal controls put in place to ensure that
The Audit Committee acts as a link between the the accounts of your Company are properly maintained and
Management, the Statutory and Internal Auditors and that the accounting transactions are in accordance with
the Board. All the Members of the Audit Committee are applicable accounting policies and standards. In conducting
financially literate. The Chairman and Members of the such reviews, the Committee found no material discrepancy
Audit Committee have accounting or related financial or weakness in the internal control system of your Company.
management expertise.
Meetings, Composition and attendance during the financial
The Statutory and Internal Auditors of your Company year under review
are invited to attend the Audit Committee Meetings. In
addition, other Senior Management Personnel are also During the financial year under review, the Audit Committee
invited to the Audit Committee Meetings from time to met 7 (Seven) times to deliberate on various matters and
time, for providing such information as may be necessary. the gap between any two Meetings was not more than 120
The Company Secretary acts as the Secretary to the (One Hundred Twenty) days. The requisite quorum was
Audit Committee. present for all the Meetings. During the financial year under
review, Audit Committee Meetings were held on 11th May
The Audit Committee, along with the Statutory Auditor, 2022, 2nd August 2022, 5th November 2022, 28th January
reviews the quarterly, half yearly and annual financial results 2023, 31st January 2023, 20 th February 2023 and 21st
at the Audit Committee Meetings, before recommending March 2023.
them to the Board of Directors. All the recommendations The composition and attendance during the financial year

under review are as follows:

Member of Category / No. of Meetings No. of shares held
Name of the Member
Committee since capacity Held Attended in the Company
Mr. Ashwani Puri (Chairman)$ 21-01-2011 Independent 6 6 Nil

Mr. Nagesh Pinge@ (Chairman) 09-03-2023 Independent 1 1 Nil
Mr. D J Kakalia$ 09-04-2001 Independent 6 6 Nil
Mr. Ajay Srinivasan# 31-07-2007 Non-Executive 2 1 Nil
Non-Independent
Ms. Alka Bharucha 04-02-2021 Independent 7 5 Nil
Ms. Vishakha Mulye* 21-10-2022 Non-Executive 5 5 Nil
Non-Independent
Mr. Subhash Chandra Bhargava@ 09-03-2023 Independent 1 1 Nil
# Resigned w.e.f 3rd August 2022
* Appointed w.e.f 21st October 2022
$ Tenure as an Independent Director expired w.e.f 8th March 2023
@ Appointed w.e.f 9 th March 2023
2. Nomination and Remuneration Committee evaluation of performance of Independent Directors and

the Board, devising a policy on Board diversity, etc. The
The Nomination and Remuneration Committee has
Committee also reviews the remuneration of the senior
been constituted pursuant to the applicable provisions
management team. The Committee acts as a Nomination
of Section 178 of the Act and Regulation 19 read with
Committee, as per the NBFC Regulations, to ensure ‘fit
Part D of Schedule II of the SEBI Listing Regulations
and proper’ status of the directors to be appointed/
and the RBI Master Directions. The Committee is mainly
re–appointed and recommend their appointment/ re–
entrusted with the responsibility of formulating criteria
appointment to the Board.
for determining the qualifications, positive attributes and
independence of the present and proposed Directors and
Meetings, Composition and attendance during the
senior management as well as recommending a policy to
financial year under review
the Board relating to the remuneration of Directors, Key
Managerial Personnel and Senior Management Personnel. During the financial year under review, the Committee met
7 (Seven) times to deliberate on various matters and the
The terms of reference of the Nomination and Meetings were held on 11th May 2022, 27th June 2022, 2nd
Remuneration Committee, inter alia, includes formulation August 2022, 28th September 2022, 5th November 2022,
of criteria for determining qualifications, positive attributes 31st January 2023 and 21st March 2023. The requisite
and independence of a Director, recommendation quorum was present for all the Meetings.
of persons to be appointed to the Board and senior
management and specifying the manner for effective The erstwhile Chairman of the Nomination and
evaluation of performance of Board, its Committees, Remuneration Committee, Mr. Jitender Balakrishnan,
Chairperson and individual Directors, recommendation attended the Annual General Meeting of the Company
of remuneration policy for Directors, Key Managerial held on 25th August 2022. The Company Secretary acts
Personnel and other employees, formulation of criteria for as Secretary to the Committee.

The composition and attendance during the financial year under review are as follows:
Member of No. of Meetings No. of shares held
Name of the Member Category/capacity
Committee since Held Attended in the Company
Mr. Jitender Balakrishnan (Chairman)& 07-01-2015 Independent 6 6 Nil
Mr. Subhash Chandra Bhargava (Chairman)^ 02-08-2022 Independent 4 4 Nil
Ms. Alka Bharucha$ 09-03-2023 Independent 1 0 Nil
Mr. Ajay Srinivasan# 07-01-2015 Non-Executive 3 1 Nil
Non-Independent
Mr. Darius J Kakalia& 07-01-2015 Independent 6 6 Nil
Ms. Vishakha Mulye* 21-10-2022 Non-Executive 3 3 Nil
Non-Independent
# Resignedw.e.f 2nd August 2022
^ Appointed w.e.f 2nd August 2022
*Appointed w.e.f 21st October 2022
& Tenure as an Independent Director expired w.e.f 8th March 2023
$ Appointed w.e.f 9 th March 2023
Remuneration Policy The terms of reference of the Stakeholders Relationship

Committee, inter alia, includes Monitoring and resolving the
Your Company has adopted an Executive Remuneration grievances of the security holders of the Company received
Philosophy/Policy in compliance with the requirements from the shareholders, Debenture holders of the Company,
under the Companies Act, 2013, SEBI Listing Regulations other security holders, review of measures taken for effective
and RBI Circular no. RBI/2022-23/36 DOR.GOV.REC. exercise of voting rights by security holders, review of adherence
No. 29/18.10.002/2022-23 dated 29 th April 2022 for to the service standards adopted by the Company in respect
Guidelines on Compensation of Key Managerial Personnel of various services being rendered by the Registrar and Share
(KMP) and Senior Management in NBFCs, under Scale Transfer Agent.
Based Regulation (“SBR”) framework for NBFCs.
The Policy has been published as Annexure II to the Meetings, Composition and attendance during the
Board’s Report, which forms part of this Annual Report. financial year under review
During the financial year under review, the Stakeholders
Your Company has in place a Directors and Officers Liability
Insurance Policy for the Company, covering all Directors Relationship Committee met once, on 11th May 2022. The
including Independent Directors of your Company. Chairman of the Stakeholders Relationship Committee,
Mr. Subhash Chandra Bhargava is a Non-Executive Independent
3. Stakeholders Relationship Committee Director. The requisite quorum was present at the Meeting. The
Company Secretary acts as Secretary to the Committee and
The Stakeholders Relationship Committee has been
also responsible for redressal of investor complaints.
constituted pursuant to the provisions of Section 178 of
the Act and Regulation 20 read with Part D of Schedule II
of the SEBI Listing Regulations.
No. of Meeting(s) No. of shares
Member of
Name of Member Category/capacity held in the
Committee since Held Attended Company
Mr. Subhash Chandra Bhargava (Chairman) 02-02-2022 Independent 1 1 Nil
Mr. Darius J Kakalia* 25-01-2019 Independent 1 1 Nil
Mr. Rakesh Singh 04-02-2021 MD & CEO 1 1 Nil
Ms. Vishakha Mulye# 09-03-2023 Non-Executive - - Nil
Non-Independent
* Tenure as an Independent Director expired w.e.f 8th March 2023
#Appointed w.e.f 9 th March 2023

Number of Complaint received so far/number not The terms of reference of the Risk Management
solved to the satisfaction of security holders/number Committee, inter alia, include overall responsibility to
of pending complaints monitor and approve the Risk Management Framework,
The Company did not receive any complaint from any assist the Board in determining the measures that can
security holder(s) during the financial year 2022-23. be adopted to mitigate the risk, to formulate/review a
policy which shall include a framework for identification
4. Risk Management Committee of internal and external risks faced by the entity including
financial, operational, sectoral, sustainability, information,
The Risk Management Committee has been constituted
cyber security risks or any other risk as may be determined
pursuant to the provisions of Regulation 21 of the SEBI
by the Committee.
Listing Regulations and RBI Master Directions, to frame,
implement and monitor the risk management plan of
the Company.
Risk Management is the process that can contribute During the financial year under review, the Risk Management
progressively to organisational improvement by providing Committee met 4 (Four) times on 13th April 2022, 1st
Management with a greater insight into risks and their August 2022, 1st November 2022 and 30th January 2023.
impact. The Company has a robust Risk Management The requisite quorum was present for all the Meetings.
framework which proactively addresses risks and seizes The Chairman of the Audit Committee is also invited at
opportunities so as to gain competitive advantage and all Risk Management Committee meetings. Mr. Ashwani
protects and creates value for your stakeholders. Puri, the erstwhile Chairman of the Audit Committee
attended all 4 (Four) meetings of Risk Management
Committee. The Company Secretary acts as the Secretary
to the Committee.
Member of No. of Meeting(s) No. of shares held
Name of Member Category/capacity
Mr. Jitender Balakrishnan (Chairman)@ 21-01-2011 Independent Director 4 4 Nil

Mr. Subhash Chandra Bhargava 04-02-2021 Independent Director 4 4 Nil
Ms. Vishakha Mulye# 21-10-2022 Non-Executive 2 2 Nil
Non-Independent Director
Mr. Ajay Srinivasan* 27-07-2011 Non-Executive 2 1 Nil
Mr. A Dhananjaya$ 25-07-2008 CRO - ABCL 4 4 Nil
Mr. Rakesh Singh 27-07-2011 Managing Director & CEO 4 4 Nil
Mr. Deep Pal Singh 25-03-2022 CRO 4 4 Nil
Mr. Ajay Singh 18-01-2013 Risk Head - PSFG 4 4 Nil
# Appointed as a Member w.e.f 21st October 2022
*Resigned as a Member w.e.f 3rd August 2022
@ Tenure as an Independent Director expired w.e.f 8th March 2023
$ Superannuated w.e.f. 31st March 2023

5. Corporate Social Responsibility Committee Meetings, Composition and attendance during the
The Corporate Social Responsibility Committee (“CSR”)
has been constituted pursuant to the provisions of Section The Corporate Social Responsibility Committee comprises
135 of the Act read with Companies (Corporate Social of an Independent Director, a Non-Executive Director
Responsibility Policy) Rules, 2014 as amended. and the Managing Director & CEO. Mrs. Rajashree
Birla, Chairperson of Aditya Birla Centre for Community
The terms of reference of the Corporate Social Initiatives and Rural Development and Dr. Pragnya Ram,
Responsibility Committee, inter alia, include Formulation Group Executive President, CSR, are permanent invitees
of CSR policy indicating the activities to be undertaken to the Meetings of Corporate Social Responsibility
by the Company as per regulatory requirements and Committee. The Company Secretary acts as Secretary to
recommend the same to the Board, recommending to the Committee.
the Board the annual action plan and the amount to be
spent on CSR activities, review, approve and recommend During the financial year under review, the Corporate Social
to the Board of Directors, the CSR projects/programs to Responsibility Committee met 2 (Two) times on 27th June
be undertaken by the Company. 2022 and 20 th March 2023. The requisite quorum was
present for the Meetings.
The composition and attendance during the financial year are as follows:
Mr. Ashwani Puri (Chairman)^ 30-12-2014 Independent 1 1 Nil

Non-Independent
Ms. Alka Bharucha (Chairperson)& 02-08-2022 Independent 1 1 Nil
Ms. Vishakha Mulye# 21-10-2022 Non-Executive 1 1 Nil
Non-Independent
#Appointed as a Member w.e.f. 21st October 2022
^Tenure as an Independent Director expired w.e.f 8th March 2023
& Re-designated as a Chairperson w.e.f. 9 th March 2023
The Committee recommends to the Board the Corporate Liability and monitor the Sensitivity of Interest Rates,
Social Responsibility activities to be undertaken during the monitoring market risk, compliance with the asset liability
year and amount to be contributed towards such activities. management policy and prudent gaps and tolerance limits
and reporting systems set out by the Board of Directors
6. Asset-Liability Management Committee and ensuring adherence to the RBI Guidelines issued in
The Asset-Liability Management Committee has been this behalf from time to time.
constituted under RBI Master Directions and in line with
regulations/guidelines issued by the Reserve Bank of India. Meetings, Composition and attendance during the
The terms of reference of the Asset-Liability Management During the financial year under review, the Asset-Liability
Committee, inter alia, include Governance of Liquidity Risk Management Committee met 16 (Sixteen) times. The
Management by ensuring adherence to the risk tolerance/ requisite quorum was present for the Meetings.
limits set by the Board, review the Pricing of Assets and


Mr. Tushar Shah 22-10-2014 CEO - PSFG & KMP 16 9 Nil
Mr. Pradeep Agrawal 23-10-2021 CFO 16 16 Nil
Mr. Ajay Singh 30-07-2015 Risk Head - PSFG 16 15 Nil
Mr. Chandramohan Amritkar 18-01-2013 Head - Treasury 16 15 Nil
Ms. Pinky Mehta 04-02-2021 CFO - ABCL 16 13 Nil
7. PIT Regulation Committee to be included in the list of Designated Persons under

the Code of Conduct, at regular intervals, on the basis
The PIT Regulation Committee has been constituted
of their role, function and access to Unpublished Price
pursuant to the provisions of the SEBI (Prohibition of
Sensitive Information (“UPSI”), review the functioning
Insider Trading) Regulations, 2015 (“PIT Regulation”), the
of the mechanism adopted for monitoring trade in the
SEBI (Prohibition of Fraudulent and Unfair Trade Practices
securities of the Company by the Designated persons as
relating to Securities Market) 2003, the Code of Conduct
identified under the Code of Conduct.
to Regulate, Monitor and Report trading by designated
persons in the listed or proposed to be listed securities of
the Company and the Code of Practices and Procedures for
Fair Disclosure of Unpublished Price Sensitive Information
of the Company. The Company Secretary acts as the During the financial year under review, the PIT Regulation
Secretary to the Committee. Committee met once on 11th May 2022. The necessary
quorum was present in the Meeting. The Company
The terms of reference of PIT Regulation Committee, inter Secretary acts as the Secretary of the Committee.
alia, includes Identification/ reviewing the list of persons
Mr. Subhash Chandra Bhargava (Chairman) 10-09-2021 Independent Director 1 1 Nil

Mr. Jitender Balakrishnan# 10-09-2021 Independent Director 1 1 Nil
# Tenure as an Independent Director expired w.e.f 8th March 2023

8. IT Strategy & Information Security Steering Committee security arrangements and any other matter related to IT
Governance, establishment of the Information Security
Pursuant to Reserve Bank of India’s Circular on Information
Management System (ISMS) objectives.
Technology Framework for NBFCs and in line with the
Company’s initiatives to implement information security
management system, the Company has constituted
IT Strategy & Information Security Steering (ITSISS)
Committee to focus on IT Governance, IT policy along During the financial year under review, the ITSISS
with Business Continuity, Information & Cyber Security, Committee met twice on 18 th July 2022 and 19 th
IT Operations, IS Audit and IT Services Outsourcing. December 2022. The requisite quorum was present for
both the Meetings. The Chief Technology Officer/Head
The terms of reference of the ITSISS Committee, of Information Technology acts as the Secretary of
inter alia, include approval of IT strategy and policy the Committee.
documents, review and amend the IT strategies, cyber
Member of No. of Meetings No. of shares held
Name of Member Category/ Designation
Mr. Jitender Balakrishnan (Chairman)* 25-01-2019 Independent 2 2 Nil

Mr. Rajat Jain (Chairman)# 09-03-2023 Independent - - Nil
Mr. Gopakumar Panicker 26-10-2017 CISO 2 2 Nil
Mr. Nikesh Gupta 02-02-2022 COO 2 2 Nil
Mr. Ramesh Mallya# 09-03-2023 Chief Technology Officer - - Nil
*Tenure as an Independent Director expired w.e.f 8th March 2023
#Appointed as a Member w.e.f. 9 th March 2023
III. WHISTLE BLOWER POLICY/VIGIL MECHANISM and Board for their review and discussion. The Policy is
in line with the Company’s Code of Conduct, Vision and
In compliance with the provisions of Section 177(9) of
Values and is available on your Company’s website at
the Act, Regulation 22 of the SEBI Listing Regulations
https://abfl.adityabirlacapital.com
and other applicable provisions, the Company has framed
its Whistle Blower Policy. The Whistle Blower Policy/Vigil
Mechanism provides a mechanism for employees and IV. OTHER DISCLOSURES
other parties to report instances and concerns about Details of non-compliance by the Company, penalties
unethical behaviour, actual or suspected fraud or violation and strictures imposed on the Company by Stock
of the Company’s Code of Conduct. Adequate safeguards Exchange(s) or SEBI or RBI or any other statutory
are provided against victimization to those who avail the authority, on any matter relating to capital markets,
mechanism and direct access to the Chairman of the Audit during the last three years.
Committee is provided to them. During the financial year There has been no instance of non-compliance by the
under review, no personnel was denied access to the Audit Company on any matter related to capital markets during
Committee. Summary of cases as and when reported, the last three years and hence no strictures /penalties have
along with status is placed before the Audit Committee been imposed on the Company by the Stock Exchanges or
the Securities and Exchange Board of India or any other

Statutory Authority. Further, there have been no penalties Particulars of related party transactions are listed out
or stricture imposed on the Company by the Reserve under the notes to the Financial Statements forming
Bank and there has been no default in compliance with part of this Annual Report. The policy on Related Party
the requirements of Companies Act, 2013, including with Transactions is available on your Company’s website at
respect to compliance with accounting and secretarial https://abfl.adityabirlacapital.com
standards except as stated below:
Disclosure of accounting treatment
(i) SEBI had imposed a penalty of ₹1 crore on your Your Company has followed all the applicable Accounting
Company under Section 15HA of the SEBI Act, Standards while preparing the Financial Statements.
1992. The Company had then filed an appeal on
21st October 2022, before the Securities Appellate Management Discussion and Analysis
Tribunal (SAT), against the said Order. Subsequently,
1. The Management Discussion and Analysis forms part
by an order dated 27th February 2023, passed in the
of this Annual Report and is in accordance with the
Appeal filed by the Company, the Securities Appellate
requirements laid out in RBI Master Directions.
Tribunal (SAT) granted a stay on the operation and
effect of the SEBI Order, subject to deposit of ₹50
2. No material transaction has been entered into by the
Lakh (Rupees Fifty Lakh only) by the Company with
Company with its related parties that may have a
SEBI within 3 weeks from the date of the Order. The
potential conflict with the interests of the Company.
Company has accordingly deposited the said amount
of ₹50 lakhs with SEBI on 6th March 2023 and the
Remuneration of Directors
matter is pending.
Independent Directors are paid sitting fees of ₹1,00,000
Further, there have been no penalties or stricture for each Meeting of the Board, ₹75,000 for each Meeting
imposed on the Company by the Reserve Bank and of the Audit Committee and ₹50,000 for each Meeting of
there has been no default in compliance with the other Committees attended by them. Your Company does
requirements of Companies Act, 2013, including not pay commission to the Directors of the Company.
with respect to compliance with accounting and
Secretarial Standards. Further, the Company reimburses the out-of-pocket
expenses incurred by these Directors for attending
Related Party Transactions the Meetings.
During the financial year under review, your Company

The Company is paying remuneration to Mr. Rakesh Singh,
had entered into related party transactions which were
Managing Director and CEO, which is in compliance with
on an arm’s length basis and in the ordinary course of
the applicable rules and regulations. Other than the above,
business. There were no material transactions with any
the Company is not paying any kind of remuneration/
related party as per the provisions of Section 188 of the
Commission to its Directors.
Act read with the Companies (Meetings of Board and its
Powers) Rules, 2014. Under Regulation 23 of the SEBI
Listing Regulations there were no materially significant
related party transactions that may have potential conflict
with the interests of the Company at large, during the year.
All related party transactions were approved by the Audit
Committee of the Company.

Details of sitting fees paid to the Independent Directors for attending the Meetings of Board and the Board Committees
during the financial year under review were as follows:
Committees
Board
Name of the Director IT
Meeting Audit Risk NRC CSR Finance SRC PIT Total
Strategy
Mr. D J Kakalia 6,00,000 4,50,000 - 3,00,000 - 1,00,000 - 50,000 - 15,00,000
Mr. Jitender 6,00,000 - 2,00,000 3,00,000 - - 1,00,000 - 50,000 12,50,000
Balakrishnan
Mr. Ashwani Puri 6,00,000 4,50,000 - - 50,000 - - - - 11,00,000
Ms. Alka Bharucha 6,00,000 3,75,000 - - 50,000 - - - - 10,25,000
Mr. Subhash Chandra 7,00,000 75,000 2,00,000 2,00,000 - - - 50,000 50,000 12,75,000
Bhargava
Mr. Nagesh Pinge 1,00,000 75,000 - - - - - - - 1,75,000
Mr. Rajat Jain 1,00,000 - - - - - - - - 1,00,000
The details of remuneration paid to Managing Director through NSE Electronic Application Processing System (NEAPS)
and CEO have been provided in Note 48 (Related party portal i.e. https://neaps.nseindia.com/NEWLISTINGCORP/ and
transactions) of the Financial Statements and in form BSE portal i.e. https://listing.bseindia.com
MGT-7, uploaded on the website of the Company at
https://abfl.adityabirlacapital.com Adoption of Mandatory and Discretionary Requirements
There were no pecuniary relationships or significant During the financial year under review, the Company has
material transactions between the Company and Non- complied with all the mandatory requirements of the SEBI
Executive Directors during the financial year under review. Listing Regulations as applicable to the Company, being a High
Value Debt Listed Company.
CEO/CFO Certification The Company complied with the following discretionary
Mr. Rakesh Singh, Managing Director & Chief Executive Officer requirement of the SEBI Listing Regulations:
and Mr. Pradeep Agrawal, Chief Financial Officer of your Company 1. For the financial year 2022-23, the Company’s financial
have issued necessary certificate pursuant to the provisions of statements are with unmodified audit opinion.
Regulation 17(8) of the SEBI Listing Regulations, for financial 2. The Internal Auditors directly report to the Audit Committee.
year 2022-23 which was placed before the Audit Committee
and Board at its respective Meetings held on 9th May 2023, and Other Disclosures:
the same forms part of this Annual Report.
1. Total fees paid by the Company for all services rendered
Compliance with Corporate Governance requirements by the joint statutory auditors of the Company viz. M/s
The Company has complied with the Corporate Governance Deloitte Haskins & Sells LLP and M/s Singhi & Co during
requirements specified under Regulations 17 to 27, clauses (b) the financial year under review was as under:
to (i) and (t) of Regulation 46(2) and Para C, D and E of Schedule (` in Lakh)
V of the SEBI Listing Regulations to the extent applicable. FY 2022-23
Particulars
DHS Singhi & Co.
Confirmation of Criteria of Independence Audit Fees & Limited Review 119.00 70.00
The Board of Directors of the Company confirm that the Tax Audit 6.00 -
Independent Directors fulfil the conditions specified in Other Services 3.09 0.90
the Act, SEBI Listing Regulations and are Independent of Total 128.09 70.90
the Management.
2. During the financial year under review, 2 (two) complaints
Processing System (NEAPS) and BSE Portal for Electronic were received under the Sexual Harassment of Women
filing at Workplace (Prevention, Prohibition and Redressal) Act,
The financial results and other intimations/ disclosures required 2013, (“POSH Act, 2013”) and the same were resolved.
to be made to the Stock Exchanges are electronically filed

3. As the number of members of your Company are not 9. The Company is exposed to foreign currency exchange
exceeding 200, the provisions of passing resolution(s) rate fluctuation risk for its foreign currency borrowing. The
through postal ballot are not applicable. Company’s borrowings in foreign currency are governed by
RBI guidelines. The Company hedges its entire External
4. Only the Non-Convertible Debentures of your Company Commercial Borrowing (“ECB”) foreign currency exposure
are listed on the following Stock Exchanges: for the full tenure of the ECB as per the Board approved
Policy. The Company is not exposed to commodity
National Stock Exchange
of India Limited
BSE Limited price risk.
Listing Department, Exchange P J Towers, Dalal Street, 10.
D uring the year under review, there were no
Plaza, Bandra Kurla Complex, Mumbai - 400001
Bandra (E), Mumbai – 400051
recommendations made by any Committee of the Board
that were mandatorily required and not accepted by
5. Link Intime India Private Limited (Registration Number : the Board.
INR000004058) is the Registrar & Share Transfer Agent
11. During the year under review, no loans and advances
of your Company.
were given to any firms/ companies in which any of the
6. There are no outstanding Global Depository Receipts Directors are interested.
or American Depository Receipts or warrants or any
12. The Company has received a certificate from RS & MP,
convertible instruments that can have any impact on
Associates, Company Secretaries, to the effect that
equity of your Company.
none of the Directors on the Board of the Company has
7. The list of all credit ratings obtained by the entity is been debarred or disqualified from being appointed or
provided in the Board's Report. continuing as Director of the Company by SEBI/Ministry
of Corporate Affairs or such other statutory authority. The
8. There have been no instances of suspension of securities
said certificate forms part of this Annual Report.
for trading.
SHAREHOLDERS & GENERAL INFORMATION

a) Details of special resolutions at Annual General Meetings (AGMs) and Extra Ordinary General Meetings (EGMs)
The following special resolutions were passed in the General Meetings held in the three previous years:
Type of Meeting Date and Place Subject matter of special resolutions passed
2020
AGM (29th) 10th July 2020 (10.00 a.m.) – Indian Rayon Compound, Appointment of Mr. Rakesh Singh as the Managing
Veraval, Gujarat- 362266 Director & CEO
2021
AGM (30th) 16th August 2021 (2.00 p.m.) – Audio visual Revision of remuneration of Mr. Rakesh Singh, Managing
Director & CEO
EGM 16th December 2021 (10.45 a.m.) - One World Centre, To approve continuation of directorship of Mr. Subhash
Tower 1 C, 18th Floor, Jupiter Mill Compound, 841, Chandra Bhargava (DIN:00020021) as the Independent
Senapati Bapat Marg, Elphinstone Road, Mumbai 400 Director of the Company
013.
2022
AGM (31st) 25th August 2022 (10.30 a.m.) - Audio visual Revision of remuneration of Mr. Rakesh Singh, Managing
Director & Chief Executive Officer
EGM 4th October 2022 (2.00 p.m.) - Audio visual 1. Alteration of Object Clause in Memorandum of
Association of the Company
2. Adoption of Aditya Birla Finance Limited Employee Stock
Option Scheme 2022
3. Approve extending the Benefit of Aditya Birla Finance
Limited Employee Stock Option Scheme 2022 to
the Employees of Present or Future Holding and/or
Subsidiary Company(ies) of the Company

Type of Meeting Date and Place Subject matter of special resolutions passed
EGM 7th November 2022 (09.30 a.m.) - 1. To Approve Borrowing Limits of the Company.
ABFL Board Room, 18th Floor, Tower 1, 2. Creation of Charges on the Assets of the Company
One World Centre, Jupiter Mill Compound, Senapati 3. Private Placement of Non-Convertible Debentures
Bapat Marg, Elphinstone Road, Mumbai – 400 013 4. Adoption of Aditya Birla Capital Limited Employee
Stock Option and Performance Stock Unit Scheme
2022 (“ABCL Scheme 2022”) and the extension of
the Benefits under the ABCL Scheme 2022 to the
Employees of the Company
EGM 3rd March 2023 (10.30 a.m.) - Audio visual 1. Alteration of Object Clause in Memorandum of
Association of the Company
2. Appointment of Mr. Rajat Kumar Jain (DIN – 00046053)
as an Independent Director of the Company
3. Appointment of Mr. Nagesh Pinge (DIN – 00062900) as
an Independent Director of the Company
b) General Shareholder Information

Date, Time and Venue of the 32nd Annual General Meeting To be decided at the Board meeting to be held for approval of Q1FY24
Unaudited Financial Results
Year 2023
Corporate Identification Number (CIN)/Registration no. of the U65990GJ1991PLC064603
Company as per Companies Act with the Registrar of Companies
Dividend Payment Date Not Applicable
Annual Listing Fees Annual Listing fees for the Financial Year 2023-24 has been paid to BSE
Limited (BSE) and National Stock Exchange of India Limited (NSE)
Market Price Data Not Applicable as the company is a debt listed entity
Shareholding Pattern and the distribution of shareholding as on Name of the No. of Equity Shareholding
31st March 2023 Shareholder Shares Pattern
Aditya Birla Capital Ltd. (“ABCL”) 66,21,00,772 100
(Subsidiary of Grasim Industries
Limited)
Nominees of ABCL 50 -
Total 66,21,00,822 100
Address for correspondence One World Centre, Tower 1-C, 18th Floor, Jupiter Mill Compound,
Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013
Registration/licence/ authorisation, obtained from other financial RBI’s certificate of Registration no. N.01.00500 dated 9th August 2011
sector regulators
Plant Location The Company being a Non-Banking Finance Company does not have any
manufacturing plant.
Area and country of operation Various States in India
MEANS OF COMMUNICATION
Quarterly Results
The Company’s quarterly/ half yearly/ annual financial results are submitted to the Stock Exchanges and published in Business
Standard (all editions).
Further, the quarterly/ half yearly/ annual financial results approved by the Board at its Meeting held for this purpose, are also
simultaneously made available on Company’s website at https://abfl.adityabirlacapital.com
Website
Your Company’s website: https://abfl.adityabirlacapital.com contains a separate section where SEBI and other Regulatory disclosures
are available. Further, the Annual Report of your Company is available under this section on the website in a downloadable form.

DECLARATION
[Regulation 26(3) and Schedule V (D)]
I, Rakesh Singh, Managing Director & CEO of Aditya Birla Finance Limited, hereby declare that the Members of Board of Directors and
Senior Management Personnel have affirmed compliance with the code of conduct of board of directors and senior management.
Dated on this 9th day of May 2023

For Aditya Birla Finance Limited
Rakesh Singh
Managing Director & CEO
DIN - 07006067

COMPLIANCE CERTIFICATE
[Regulation 17(8) of SEBI LODR]
A. We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge
and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(2) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the
auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which they are
aware and the steps they have taken or propose to take to rectify these deficiencies.
D. We have indicated to the Auditors and the Audit Committee:
(1) significant changes in internal control over financial reporting during the year;
(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and
(3) instances of significant fraud of which they have become aware and the involvement therein, if any, of the management or
an employee having a significant role in the Company’s internal control system over financial reporting.
Dated on this 9th day of May 2023

For Aditya Birla Finance Limited
Rakesh Singh Pradeep Agrawal

Managing Director & CEO Chief Financial Officer
DIN - 07006067

CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS
UNDER SEBI (LISTING OBLIGATION AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
To,
The Members of
Indian Rayon Compound,
Veraval Gujrat- 362266.
We, BNP & Associates have examined all relevant records of In our opinion, and to the best of our information and according
Aditya Birla Finance Limited (hereinafter referred as “the to the explanations given to us, we certify that the Company
Company”) as provided through the virtual data room for the has complied with the conditions of Corporate Governance as
purpose of certifying the compliance ensured by the Company specified for listed company in the LODR for FY 2022-23.
for disclosure requirements and corporate governance norms
as specified for the Listed Companies, as prescribed under We further state that the above certification is neither an
Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of assurance as to the future viability of the Company nor the
Regulation 46 and Para C, D and E of Schedule V of Chapter efficiency or effectiveness with which the management has
IV of the Securities and Exchange Board of India (Listing conducted the affairs of the Company during the financial year.
Obligations and Disclosure Requirements) Regulations, 2015
(‘LODR’), for the financial year ended 31st March 2023. We have For BNP & Associates
obtained all the information and explanations, which, to the Company Secretaries
best of our knowledge and belief, necessary for the purpose of [Firm Regn. No. P2014MH037400
this certification. PR No. 637/2019
We state that completing compliance requirements of Avinash Bagul

Corporate Governance is the responsibility of the management
Partner
of the Company, and our examination is limited to procedures
FCS No. 5578
and implementation thereof as adopted by the Company for
CP No. 19862
ensuring the compliance. It is neither an audit nor an expression
UDIN: F005578E000275694
of opinion on the financial statements of the Company.
Date: May 09, 2023
Place: Mumbai

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members,
ADITYA BIRLA FINANCE LIMITED
Indian Rayon Compound, Veraval
Gujarat 362266, India.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Aditya Birla
Finance Limited, having CIN: U65990GJ1991PLC064603 and having registered office at Indian Rayon Compound, Veraval –
362266, Gujarat, India (hereinafter referred to as the ‘Company’), produced before me by the Company for the purpose of issuing
this Certificate, in accordance with Circular No. NSE/CML/2022/01 dated January 07, 2022 and BSE Notice No.20220107-16
dated January 07, 2022 read with Schedule V Para C Sub clause 10(i) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verification (including Directors identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers to
us physically and electronically, we hereby certify that none of the Directors on the Board of the Company as stated below for
the Financial Year ending on March 31, 2023 have been debarred or disqualified from being appointed or continuing as Directors
of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority:
Sr.
Name of Directors Designation DIN
No.
1. Ms. Vishakha Vivek Mulye Non-Executive Director 00203578
2. Ms. Alka Marezban Bharucha Independent Director 00114067
3. Mr. Subhash Chandra Bhargava Independent Director 00020021
4. Mr. Nagesh Dinkar Pinge Independent Director 00062900
5. Mr. Rajat Kumar Jain Independent Director 00046053
6. Mr. Rakesh Singh Managing Director 07006067
7. Mr. Kamlesh Dayanand Rao Non-Executive Director 07665616
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 Company.
For RS & MP Associates, Company Secretaries

Unique code No.: P2017MH061400
PR: 1773/2022
Rakesh Sanghani, Partner

FCS: 7647 CP No.: 6302
UDIN: F007647E000377203
Date: May 25, 2023

Place: Mumbai

Independent Auditor’s Report
To the Members of
REPORT ON THE AUDIT OF THE FINANCIAL Basis for opinion

STATEMENTS We conducted our audit of the financial statements in accordance
Opinion with the Standards on Auditing specified under section 143(10)
We have audited the accompanying financial statements of of the Act (“SA”s). Our responsibilities under those Standards
Aditya Birla Finance Limited (the “Company”), which comprise are further described in the Auditors’ Responsibility for the
the Balance Sheet as at 31st March, 2023, and the Statement Audit of the Financial Statements section of our report. We are
of Profit and Loss (including Other Comprehensive Income), independent of the Company in accordance with the Code of
the Cash Flow Statement and the Statement of Changes in Ethics issued by the Institute of Chartered Accountants of India
Equity and for the year then ended, and a summary of significant (“ICAI”) together with the ethical requirements that are relevant
accounting policies and other explanatory information to our audit of the financial statements under the provisions of
(hereinafter referred to as the ‘financial statements’). the Act and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
In our opinion and to the best of our information and according to requirements and the ICAI’s Code of Ethics. We believe that the
the explanations given to us, the aforesaid financial statements audit evidence obtained by us is sufficient and appropriate to
give the information required by the Companies Act, 2013 (the provide a basis for our audit opinion on the financial statements.
“Act”) in the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards prescribed Key audit matters
under section 133 of the Act read with the Companies (Indian Key audit matters are those matters that, in our professional
Accounting Standards) Rules, 2015, as amended, (“Ind AS”) judgment, were of most significance in our audit of the
and other accounting principles generally accepted in India, of financial statements of the current period. These matters were
the state of affairs of the Company as at 31st March, 2023, and addressed in the context of our audit of the financial statements
its profit, total comprehensive income, its cash flows and the as a whole, and in forming our opinion thereon, and we do
changes in equity for the year ended on that date. not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit
matters to be communicated in our report.

Sr.
Key audit matter Auditors’ response
No.
1. Allowances for expected credit losses (“ECL”): We performed the following audit procedures:
As at 31st March, 2023, the carrying value of loan assets measured We have examined the policies approved by the Board of Directors
at amortised cost, aggregated ₹78,84,950.10 lakh (net of of the Company that articulate the objectives of managing each
allowance of expected credit loss ₹1,60,328.71 lakh) constituting portfolio and their business models. We have also verified the
approximately 94% of the Company’s total assets. Significant methodology adopted for computation of ECL (“ECL Model”) that
judgement is used in classifying these loan assets and applying addresses policies approved by the Board of Directors, procedures
appropriate measurement principles. ECL allowance on such loan and controls for assessing and measuring credit risk on all lending
assets measured at amortised cost is a critical estimate involving a exposures measured at amortised cost.
greater level of management judgement. Additionally, we have confirmed that adjustments to the output of
As part of our risk assessment, we determined that the allowance the ECL Model is consistent with the documented rationale and
for ECL on loan assets has a high degree of estimation uncertainty, basis for such adjustments and that the amount of adjustment have
with a potential range of reasonable outcomes for the financial been approved by the Audit Committee of the Board of Directors.
statements. Our audit procedures related to the allowance for ECL included the
The elements of estimating ECL which involved increased level of following, among others:
audit focus are the following:
• Testing the design and operating effectiveness of the following:
• Qualitative and quantitative factors used in staging the loan
− completeness and accuracy of the Exposure at Default (“EAD”)
assets measured at amortised cost.
and the classification thereof into stages consistent with the
• Basis used for estimating Probabilities of Default (“PD”), Loss definitions applied in accordance with the policy approved
Given Default (“LGD”) and Exposure at Default (“EAD”) at by the Board of Directors including the appropriateness of
product level with past trends; the qualitative factors to be applied.
• Judgements used in projecting economic scenarios and − completeness, accuracy and appropriateness of information
probability weights applied to reflect future economic used in the estimation of the PD and LGD for the different
conditions; and stages depending on the nature of the portfolio; and
• Adjustments to model driven ECL results to address − accuracy of the computation of the ECL estimate including
emerging trends. reasonableness of the methodology used to determine
macro-economic overlays and adjustments to the output
(Refer Note 4.1, 10 and 52 to the Financial Statements) of the ECL Model.
• Test of details on a sample in respect of the following:
− we tested accuracy and completeness of the input data such
as ratings and period of default and other related information
used in estimating the PD;
− completeness and accuracy of the staging of the loans and
the underlying data based on which the ECL estimates have
been computed.
− we evaluated reasonableness of LGD estimates by comparing
actual recoveries post the loan asset becoming credit
impaired with estimates of LGD; and
− we evaluated the incorporation of the applicable assumptions
into the ECL Model and tested the mathematical accuracy
and computation of the allowances by using the same input
data used by the Company.
• We also evaluated the adequacy of the adjustment after
stressing the inputs used in determining the output as per the
ECL Model and ensured that the adjustment was in conformity
with the amount approved by the Audit Committee.
• We also assessed the disclosures made in relation to the ECL
allowance to confirm compliance with the provisions of Ind
AS 107.

Sr.
Key audit matter Auditors’ response
No.
2. Key information technology and general controls With the assistance of our IT specialists, we obtained an understanding
The Company is dependent on its Information Technology (“IT”) of the Company’s IT applications, databases and operating systems
systems due to the significant number of transactions that are relevant to financial reporting and the control environment. For these
processed daily across such multiple and discrete IT systems. elements of the IT infrastructure the areas of our focus included access
security (including controls over privileged access), program change
Also, IT application controls are critical to ensure that changes to controls, database management and network operations.
applications and underlying data are made in an appropriate manner
and under controlled environments. Appropriate controls contribute In particular:
to mitigating the risk of potential fraud or errors as a result of • We tested the design, implementation and operating effectiveness
changes to applications and data.
of the Company’s general IT controls over the key IT systems
On account of the pervasive use of its IT systems, the testing of the
relevant to financial reporting. This included evaluation of
general computer controls of the key IT systems used in financial
reporting was considered to be a Key Audit Matter Company’s controls over segregation of duties and access rights
being provisioned / modified based on duly approved requests,
access for exit cases being revoked in a timely manner and access
of all users being recertified during the period of audit;
• We also tested key automated business cycle controls and
logic for the reports generated through the IT infrastructure
that were relevant for financial reporting or were used in the
exercise of internal financial controls with reference to financial
statements. Our tests included testing of the compensating
controls or alternate procedures to assess whether there were
any unaddressed IT risks that would materially impact the
financial statements.
Information other than the financial statements and • If, based on the work we have performed, we conclude that
auditors’ report thereon there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report
• The Company’s Board of Directors is responsible for the
in this regard.
other information. The other information comprises the
information included in the Board’s Report including
Responsibilities of management and those charged with
Annexures thereto, Management Discussion and Analysis
governance for the financial statements
(“MD&A”) (collectively referred to as “other information”) but
does not include the financial statements and our auditors’ The Company's Board of Directors is responsible for the
report thereon. matters stated in section 134(5) of the Act with respect to
the preparation of these financial statements that give a true
• Our opinion on the financial statements does not cover
and fair view of the financial position, financial performance
the other information and we do not express any form of
including other comprehensive income, cash flows and changes
assurance conclusion thereon.
in equity of the Company in accordance with the Ind AS
• In connection with our audit of the financial statements, our and other accounting principles generally accepted in India.
responsibility is to read the other information and, in doing This responsibility also includes maintenance of adequate
so, consider whether the other information is materially accounting records in accordance with the provisions of the Act
inconsistent with the financial statements, or our knowledge for safeguarding the assets of the Company and for preventing
obtained during the course of our audit or otherwise appears and detecting frauds and other irregularities; selection
to be materially misstated. and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent;

and design, implementation and maintenance of adequate on whether the Company has adequate internal financial
internal financial controls, that were operating effectively for controls with reference to financial statements in place and
ensuring the accuracy and completeness of the accounting the operating effectiveness of such controls.
records, relevant to the preparation and presentation of the • Evaluate the appropriateness of accounting policies used
financial statement that give a true and fair view and are free and the reasonableness of accounting estimates and related
from material misstatement, whether due to fraud or error. disclosures made by the management.
• Conclude on the appropriateness of management’s use of
In preparing the financial statements, management is
the going concern basis of accounting and, based on the
responsible for assessing the Company’s ability to continue as
audit evidence obtained, whether a material uncertainty
a going concern, disclosing, as applicable, matters related to
exists related to events or conditions that may cast
going concern and using the going concern basis of accounting
significant doubt on the Company’s ability to continue as
unless management either intends to liquidate the Company or
a going concern. If we conclude that a material uncertainty
to cease operations, or has no realistic alternative but to do so.
exists, we are required to draw attention in our auditors’
report to the related disclosures in the financial statements
The Company’s Board of Directors is also responsible for
or, if such disclosures are inadequate, to modify our opinion.
overseeing the Company’s financial reporting process.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events
Auditors’ responsibility for the audit of the financial or conditions may cause the Company to cease to continue
statements as a going concern.
Our objectives are to obtain reasonable assurance about
• Evaluate the overall presentation, structure and content
whether the financial statements as a whole are free from
of the financial statements, including the disclosures, and
material misstatement, whether due to fraud or error, and to
whether the financial statements represent the underlying
issue an auditors’ report that includes our opinion. Reasonable
transactions and events in a manner that achieves
assurance is a high level of assurance but is not a guarantee that
fair presentation.
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
Materiality is the magnitude of misstatements in the
from fraud or error and are considered material if, individually or
financial statements that, individually or in aggregate, makes
in the aggregate, they could reasonably be expected to influence
it probable that the economic decisions of a reasonably
the economic decisions of users taken on the basis of these
knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and
As part of an audit in accordance with SAs, we exercise qualitative factors in (i) planning the scope of our audit
professional judgment and maintain professional skepticism work and in evaluating the results of our work; and (ii) to
throughout the audit. We also: evaluate the effect of any identified misstatements in the
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
We communicate with those charged with governance regarding,
and perform audit procedures responsive to those risks, and
among other matters, the planned scope and timing of the
obtain audit evidence that is sufficient and appropriate to
audit and significant audit findings, including any significant
provide a basis for our opinion. The risk of not detecting a
deficiencies in internal control that we identify during our audit.
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
We also provide those charged with governance with a statement
forgery, intentional omissions, misrepresentations, or the
that we have complied with relevant ethical requirements
override of internal control.
regarding independence, and to communicate with them
• Obtain an understanding of internal financial control relevant all relationships and other matters that may reasonably be
to the audit in order to design audit procedures that are thought to bear on our independence, and where applicable,
appropriate in the circumstances. Under section 143(3)(i) of related safeguards.
the Act, we are also responsible for expressing our opinion

From the matters communicated with those charged with g. With respect to the other matters to be included
governance, we determine those matters that were of most in the Auditors’ report in accordance with the
significance in the audit of the financial statements of the requirements of section 197(16) of the Act, as
current period and are therefore the Key Audit Matters. We amended, in our opinion and to the best of our
describe these matters in our auditor’s report unless law or information and according to the explanations given
regulation precludes public disclosure about the matter or when, to us the remuneration paid by the Company to its
in extremely rare circumstances, we determine that a matter directors during the year is in accordance with the
should not be communicated in our report because the adverse provisions of section 197 of the Act.
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication. h. With respect to the other matters to be included in
the Auditors’ Report in accordance with Rule 11 of
Report on other legal and regulatory requirements the Companies (Audit and Auditors) Rules, 2014,
1. As required by Section 143(3) of the Act, based on our as amended in our opinion and to the best of our
audit of the financial statements, we report that: information and according to the explanations given
to us:
a. We have sought and obtained all the information and
explanations which to the best of our knowledge and i. The Company has disclosed the impact of
belief were necessary for the purposes of our audit. pending litigations on its financial position in
its financial statements (Refer Note 46 to the
b. In our opinion, proper books of account as required financial statements);
by law have been kept by the Company so far as it
appears from our examination of those books. ii. The Company has made provision, as required
under the applicable law or accounting standards
c. The Balance Sheet, the Statement of Profit and Loss for material foreseeable losses, if any, on long-
including Other Comprehensive Income, the Cash term contracts including derivative contracts;
Flow Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the iii. There were no amounts which were required
relevant books of account. to be transferred to the Investor Education and
Protection Fund by the Company.
d. In our opinion, the aforesaid financial statements
comply with the Ind AS specified under Section 133 iv. (a) The Management has represented that,
of the Act. to the best of its’ knowledge and belief,
no funds (which are material either
e. On the basis of the written representations received individually or in the aggregate) have been
from the directors as on 31st March, 2023, taken on advanced or loaned or invested (either
record by the Board of Directors, none of the directors from borrowed funds or share premium
are disqualified as on 31st March, 2023 from being or any other sources or kind of funds) by
appointed as a director in terms of Section 164(2) the Company to or in any other person(s)
of the Act. or entity(ies), including foreign entities
(“Intermediaries”), with the understanding,
f. With respect to the adequacy of the internal financial whether recorded in writing or otherwise,
controls with reference to financial statements of the that the Intermediary shall, directly or
Company and the operating effectiveness of such indirectly lend or invest in other persons
controls, refer to our separate Report in ‘Annexure or entities identified in any manner
A’. Our report expresses an unmodified opinion on whatsoever by or on behalf of the Company
the adequacy and operating effectiveness of the (“Ultimate Beneficiaries”) or provide any
Company’s internal financial controls with reference guarantee, security or the like on behalf of
to financial statements. the Ultimate Beneficiaries.

(b) The Management has represented, that, v. The company has not declared or paid any
to the best of its’ knowledge and belief, dividend during the year and has not proposed
no funds (which are material either final dividend for the year.
individually or in the aggregate) have
been received by the Company from vi.
Proviso to Rule 3(1) of the Companies
any person(s) or entity(ies), including (Accounts) Rules, 2014 for maintaining books
foreign entities (“Funding Parties”), with of account using accounting software which
the understanding, whether recorded in has a feature of recording audit trail (edit log)
writing or otherwise, that the Company facility is applicable to the Company w.e.f.
shall, directly or indirectly, lend or invest 01st April, 2023, and accordingly, reporting
in other persons or entities identified in any under Rule 11(g) of Companies (Audit and
manner whatsoever by or on behalf of the Auditors) Rules, 2014 is not applicable for the
Funding Party (“Ultimate Beneficiaries”) or financial year ended 31st March, 2023.
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and 2. As required by the Companies (Auditor’s Report) Order,
2020 (the ‘Order’) issued by the Central Government in
(c) Based on the audit procedures performed terms of Section 143(11) of the Act, we give in “Annexure
that has been considered reasonable and B” a statement on the matters specified in paragraphs 3
appropriate in the circumstances, nothing and 4 of the Order.
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain
any material misstatement.
For DELOITTE HASKINS & SELLS LLP For SINGHI & CO.
Chartered Accountants Chartered Accountants
(Firm’s Registration No.117366W/W-100018) (Firm’s Registration No. 302049E)
Sanjiv V. Pilgaonkar Amit Hundia

Partner Partner
Membership No. 039826 Membership No. 120761
UDIN: 23039826BGXRZL8181 UDIN: 23120761BGYVTW2656
Place: Mumbai Place: Mumbai

Date: 09th May, 2023 Date: 09th May, 2023

Annexure ‘A’
To The Independent Auditors’ Report
(Referred to in paragraph 1(f) under ‘report on other legal and regulatory requirements’ section of our report of even date)
Report on the internal financial controls with reference Our audit involves performing procedures to obtain audit
to financial statements under clause (i) of sub-section evidence about the adequacy of the internal financial controls
3 of section 143 of the companies act, 2013 (the “Act”) with reference to financial statement and their operating
effectiveness. Our audit of internal financial controls with
We have audited the internal financial controls with reference
reference to financial statements included obtaining an
to financial statements of Aditya Birla Finance Limited (the
understanding of Internal Financial Controls with reference to
“Company”) as of 31st March, 2023 in conjunction with our
Financial Statement, assessing the risk that a material weakness
audit of the financial statements of the Company for the year
exists, and testing and evaluating the design and operating
ended on that date.
effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement,
Management’s responsibility for internal financial controls including the assessment of the risks of material misstatement
The Company’s management is responsible for establishing and of the financial statements, whether due to fraud or error.
maintaining internal financial controls with reference to financial
statements based on the internal control with reference to We believe that the audit evidence we have obtained is sufficient
financial statements criteria established by the Company and appropriate to provide a basis for our audit opinion on
considering the essential components of internal control the Company’s internal financial controls with reference to
stated in the Guidance Note on Audit of Internal Financial financial statements.
Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (the ‘Guidance Note’). These Meaning of internal financial controls with reference
responsibilities include the design, implementation and to financial statements
maintenance of adequate internal financial controls that were
A company's internal financial control with reference to financial
operating effectively for ensuring the orderly and efficient
statements is a process designed to provide reasonable
conduct of its business, including adherence to respective
assurance regarding the reliability of financial reporting and
Company’s policies, the safeguarding of its assets, the
the preparation of financial statements for external purposes
prevention and detection of frauds and errors, the accuracy
in accordance with generally accepted accounting principles. A
and completeness of the accounting records, and the timely
company's internal financial control with reference to financial
preparation of reliable financial information, as required under
statements includes those policies and procedures that (1)
the Companies Act, 2013.
pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of
Auditors’ responsibility the assets of the company; (2) provide reasonable assurance that
Our responsibility is to express an opinion on the Company’s transactions are recorded as necessary to permit preparation
Internal Financial Controls with reference to financial statements of financial statements in accordance with generally accepted
of the Company based on our audit. We conducted our audit accounting principles, and that receipts and expenditures
in accordance with the Guidance Note and the Standards on of the company are being made only in accordance with
Auditing prescribed under Section 143(10) of the Companies authorisations of management and directors of the company;
Act, 2013, to the extent applicable to an audit of internal and (3) provide reasonable assurance regarding prevention or
financial controls with reference to financial statements. Those timely detection of unauthorised acquisition, use, or disposition
Standards and the Guidance Note require that we comply with of the Company's assets that could have a material effect on
ethical requirements and plan and perform the audit to obtain the financial statements.
reasonable assurance about whether adequate internal financial
controls with reference to financial statements were established
and maintained and if such controls operated effectively in all
material respects.

Inherent limitations of internal financial controls with Opinion

reference to financial statements In our opinion, to the best of our information and according to
Because of the inherent limitations of internal financial controls the explanations given to us the Company has, in all material
with reference to financial statements, including the possibility respects, an adequate internal financial controls system with
of collusion or improper management override of controls, reference to financial statements and such internal financial
material misstatements due to error or fraud may occur and not controls with reference to financial statements were operating
be detected. Also, projections of any evaluation of the internal effectively as at 31st March, 2023 based on the criteria for
financial controls with reference to financial statements to internal financial control with reference to financial statement
future periods are subject to the risk that the internal financial established by the respective Company considering the essential
controls with reference to financial statements may become components of internal control stated in the Guidance Note on
inadequate because of changes in conditions, or that the degree Audit of Internal Financial Controls Over Financial Reporting
of compliance with the policies or procedures may deteriorate. issued by the Institute of Chartered Accountants of India.
(Firm’s Registration No. 117366W/W-100018) (Firm’s Registration No. 302049E)

Partner Partner


Annexure ‘B’
To The Independent Auditors’ Report
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) to
the members of Aditya Birla Finance Limited on the Financial Statements as at and for the year ended 31st March, 2023)
To the best of our information and according to the explanations physical inventories. Accordingly, paragraph 3(ii)(a)
provided to us by the Company and the books of account of the Order is not applicable.
examined by us in the normal course of audit, we state that:
(b) The Company has been sanctioned working capital
(i) In respect of the Company’s Property, Plant and Equipment: limits in excess of five crore rupees, in aggregate, by
banks or financial institutions on the basis of security
(a) (A) The Company has maintained proper records of loans (assets) during the year. As disclosed in
showing full particulars, including quantitative Note 72 to the financial statements, the differences
details and situation of its Property, Plant and between the items reported in the quarterly returns
Equipment, and the relevant details of Right-of- / statements filed by the Company (including
Use assets. subsequent revisions thereto) with such banks
or financial institutions and the books of account
(B) The Company has maintained proper records maintained by the Company, were not material.
showing full particulars of Intangible Assets. However, we have not carried out a specific audit of
such statements.
(b) The Property, Plant and Equipment, were physically
verified during the year by the Management in (iii) As explained in note 1 to the financial statements, the
accordance with a regular programme of verification Company is a non-deposit taking non-banking financial
which in our opinion, provides for physical verification company (“NBFC”) registered with the Reserve Bank
of all the property, plant and equipment at reasonable of India (“RBI”) and as part of its business activities, is
intervals. No material discrepancies were noticed on engaged in the business of lending across various types
such verification. of loans.
(c)
Based on our examination of the documents During the year, in the ordinary course of its business, the
provided to us, we report that, the title deeds of all Company has made investments in, provided guarantee/
the immovable properties, (other than immovable security to and granted loans and advances in the nature
properties where the Company is the lessee and of loans, secured and unsecured, to companies, firms,
the lease agreements are duly executed in favour of limited liability partnerships and other parties. With
the Company) disclosed in the financial statements respect to such investments, guarantees/ security and
included in are held in the name of the Company as loans and advances:
at the balance sheet date.
(a) The provisions of paragraph 3(iii)(a) of the Order
(d) The Company has not revalued any of its Property, are not applicable to the Company as its principal
Plant and Equipment (Including Right of Use assets) or business is to give loans;
intangible assets or both during the year. Accordingly,
paragraph 3(i)(d), of the Order is not applicable. (b) In our opinion, having regard to the nature of the
Company’s business, the investments made,
(e) No proceedings have been initiated during the year or guarantees provided, security given and the terms
are pending against the Company as at 31st March, and conditions for the grant of all loans and advances
2023 for holding any benami property under the in the nature of loans and guarantees provided
Benami Transactions (Prohibition) Act, 1988 (as during the year are, prima facie, not prejudicial to
amended in 2016) and rules made thereunder. the Company’s interest;
(ii) In respect of the Company’s inventories: (c) In respect of loans and advances in the nature of
loans (together referred to as “loan assets”), the
(a)
The Company is engaged primarily in lending
schedule of repayment of principal and payment
activities and consequently does not hold any

of interest has been stipulated. Note 4.1(v) to the (iv) In our opinion, the Company has complied with the
Financial Statements explains the Company’s provisions of Section 185 of the Companies Act, 2013
accounting policy relating to impairment of financial in respect of loans granted, investments made and
assets which include loans assets. In accordance guarantees provided or security given, as applicable and
with that policy, loan assets with balances as at the provisions of Section 186 of the Companies Act 2013
31st March, 2023, aggregating ₹250,709.88 lakh are not applicable to the Company.
were categorised as credit impaired (“Stage 3”) and
₹218,735.72 lakh were categorised as those where (v) In our opinion and according to the information and
the credit risk has increased significantly since initial explanations given to us, the Company being Non-Banking
recognition (“Stage 2”). Disclosures in respect of Finance Company registered with RBI, provisions of
such loans have been provided in Note 10 to the Sections 73 to 76 or any other relevant provisions of the
Financial Statements. Additionally, out of loans and Companies Act, 2013 and the Companies (Acceptance of
advances in the nature of loans with balances as at Deposits) Rules, 2014, as amended, are not applicable to
the year-end aggregating ₹75,75,784.68 lakhs, where the Company. We are informed by the management that
credit risk has not significantly increased since initial no order has been passed by the Company Law Board,
recognition (categorised as “Stage 1”), delinquencies National Company Law Tribunal or Reserve Bank of India
in the repayment of principal and payment of interest or any Court or any other Tribunal against the Company in
aggregating ₹11,393.19 lakh were also identified, this regard.
albeit for a period of less than 31 days. In all other
cases, the repayment of principal and interest is (vi) The maintenance of cost records has not been specified
regular. Having regard to the nature of the Company’s by the Central Government under Section 148(1) of the
business and the volume of information involved, it Companies Act, 2013, for business activities carried out
is not practicable to provide an itemised list of loan by the Company. Hence, reporting under paragraph 3 (vi)
assets where delinquencies in the repayment of of the order is not applicable.
principal and interest have been identified.
(vii) In respect of statutory dues:
(d) The total amount overdue for more than ninety (a)
T he Company has generally been regular in
days, in respect of loans and advances in the nature depositing undisputed statutory dues, including
of loans, as at the year-end is ₹ 1,38,898.34 lakh. Goods and Service Tax, Provident Fund, Employees’
Reasonable steps are being taken by the Company State Insurance, Income Tax, Cess and other material
for recovery of the principal and interest. statutory dues applicable to it, with the appropriate
authorities. As explained to us, the Company did
(e) The provisions of paragraph 3(iii)(e) of the Order not have any dues payable on account of sales tax,
are not applicable to the Company as its principal service tax, duty of customs, duty of excise and value
business is to give loans. added tax.
(f) The Company has not granted any loans or advances (b)
There were no undisputed amounts payable in
in the nature of loans that were either repayable on respect of Goods and Service Tax, Provident Fund,
demand or without specifying any terms or period Employees’ State Insurance, Income Tax Cess and
of repayment. any other material statutory dues in arrears as at 31st
March, 2023, for a period of more than six months
from the date they became payable.

Annexure ‘B’
(c) The Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on 31st March,
2023, on account of disputes are given below:
(₹ in Lakhs)
Nature Amount Amount Period to which
Name of the statute Forum where dispute is pending
of dues involved* unpaid the amount elates
Income Tax Act, 1961 Income Tax 55.83 55.83 AY 2007-08 Income Tax Officer (Assessing Officer)
Income Tax Act, 1961 Income Tax 5,230.44 5,230.44 AY 2011-12 Bombay High Court
Income Tax Act, 1961 Income Tax 189.43 189.43 AY 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Act, 1961 Income Tax 1,515.52 1,515.52 AY 2017-18 Commissioner of Income Tax (Appeals)
Finance Act, 1994 Service Tax 69.84 62.86 FY 2014-15 Custom, Excise and Service Tax Appellate
and 2015-16 Tribunal, Mumbai
*Includes interest and penalty
(viii) There were no transactions relating to previously (x) (a) The Company has not raised moneys by way of initial
unrecorded income that were surrendered or disclosed public offer or further public offer (including debt
as income in the tax assessments under the Income Tax instruments) during the year and hence reporting
Act, 1961 (43 of 1961) during the year. under paragraph 3(x)(a) of the Order is not applicable.
(ix) With respect to reporting requirements of paragraph 3(ix) (b) The Company has not made any preferential allotment
of the Order: or private placement of shares or convertible
debentures (fully or partially or optionally) during
(a) The Company has not defaulted in the repayment
the year under review and hence reporting under
of loans or other borrowings or in the payment of
paragraph 3(x)(b) of the Order is not applicable to
interest thereon to any lender during the year.
the Company.
(b) The Company has not been declared a willful defaulter
(xi) (a) To the best of our knowledge, no material fraud by
by any bank or financial institution or government or
the Company and no material fraud on the Company
any government authority.
has been noticed or reported during the year.
(c) In our opinion, term loans availed by the Company
(b) No report under section 143(12) of the Companies
during the year, were applied by the Company for the
Act, 2013, has been filed in Form ADT-4 as prescribed
purposes for which the loans were obtained.
under rule 13 of Companies (Audit and Auditors)
(d) On the basis of the maturity profile of financial assets Rules, 2014 with the Central Government, during
and financial liabilities provided in Note 44 to the the year and upto the date of this report.
Financial Statements, financial liabilities maturing
(c) We have taken into consideration the whistle blower
within the 12 months following the reporting date
complaints received by the Company during the year
(i.e. 31st March, 2023) falls short of the expected
(and upto the date of this report) and provided to us,
recoveries from financial assets during that period.
while determining the nature, timing and extent of
Further, funds raised on short-term basis have, prima
our audit procedures.
facie, not been used during the year for long-term
purposes by the Company. (xii) The Company is not a Nidhi Company and hence reporting
under paragraph 3(xii) of the Order is not applicable.
(e) The Company did not have any subsidiary or associate
or joint venture during the year and hence, reporting (xiii) In our opinion, the Company has complied with the
under clause (ix)(e) of the Order is not applicable. provisions of Section 177 and 188 of the Companies
Act, 2013, where applicable, for all transactions with the
(f) The Company did not have any subsidiary or associate
related parties and the details of related party transactions
or joint venture during the year and hence, reporting
have been disclosed in the financial statements, etc., as
under clause (ix)(f) of the Order is not applicable.
required by the applicable accounting standards.

(xiv) (a) In our opinion, the Company has an adequate internal (xvii) T he Company has not incurred cash losses during the
audit system commensurate with the size and the financial year covered by our audit and in the immediately
nature of its business. preceding financial year.
(b) We have considered, the internal audit reports, (xviii) There has been no resignation of the statutory auditors of
issued to the Company during the year and till date, the Company during the year.
in determining the nature, timing and extent of our
(xix) On the basis of the financial ratios, ageing and expected
audit procedures.
dates of realization of financial assets and payment of
(xv) In our opinion, during the year the Company has not financial liabilities, other information accompanying the
entered into any non-cash transactions with its directors financial statements, and our knowledge of the Board
or directors of its holding company or persons connected of Directors and Management plans and based on our
with them and hence provisions of section 192 of the examination of the evidence supporting the assumptions,
Companies Act, 2013 are not applicable to the Company. nothing has come to our attention, which causes us to
believe that any material uncertainty exists as on the date
(xvi) (a) The Company is required to be registered under
of the audit report, indicating that Company is not capable
section 45-IA of the Reserve Bank of India Act, 1934
of meeting its liabilities existing at the date of balance
(“RBI Act”) and it has obtained the registration.
sheet as and when they fall due within a period of one
(b) The Company has conducted the Non-Banking year from the balance sheet date. We, however, state that
Financial activities with a valid Certificate of this is not an assurance as to the future viability of the
Registration (“CoR”) from the RBI as per the RBI Act. Company. We further state that our reporting is based on
The Company has not conducted any housing finance the facts up to the date of the audit report and we neither
activities and is not required to obtain CoR for such give any guarantee nor any assurance that all liabilities
activities from the RBI. falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and
(c) The Company is not a Core Investment Company when they fall due.
(“CIC”) and hence reporting under paragraph 3(xvi)
(c) of the Order is not applicable to the Company. (xx) The Company has fully spent the required amount towards
Corporate Social Responsibility (CSR) and there are no
(d)
According to the information and explanations unspent CSR amount for the year requiring a transfer to
provided to us, the Group (as per the provisions of a Fund specified in Schedule VII to the Companies Act or
the Core Investment Companies (Reserve Bank) special account in compliance with the provision of sub-
Directions, 2016) has more than one CIC as part of section (6) of section 135 of the said Act. Accordingly,
the Group. The Group has 1 CIC which is registered reporting under clause (xx) of the Order is not applicable
with the Reserve Bank of India and 2 CICs which for the year.
are in the process of registration with Reserve Bank
of India. (xxi) The Company did not have any Subsidiary, Associate or
Joint Venture and hence, reporting under the clause (xxi)
of the Order is not applicable.
(Firm’s Registration No. 117366W/W-100018) (Firm’s Registration No. 302049E)

Partner Partner


Balance Sheet
as at 31st March, 2023
(₹ in Lakhs)
As at As at
Particulars Note No.
31st March, 2023 31st March, 2022
I ASSETS
1 Financial assets
(a) Cash and cash equivalents 6 38,763.43 59,571.14
(b) Bank balance other than included in (a) above 7 - 9,681.37
(c) Derivative financial instruments 8 83.64 19.02
(d) Receivable
(I) Trade receivables 9 4,030.61 1,243.96
(II) Other receivables - -
(e) Loans 10 78,84,950.10 53,60,746.02
(f) Investments 11 3,70,269.62 1,69,403.56
(g) Other financial assets 12 14,751.79 5,361.81
2 Non-financial assets
(a) Current tax assets (net) 13 15,150.75 34,239.10
(b) Deferred tax assets (net) 41 40,653.14 25,954.92
(c) Property, plant and equipment 14 5,130.16 1,881.37
(d) Right of use Lease Assets 15 18,749.72 12,187.33
(e) Intangible assets under development 16 890.07 1,089.05
(f) Other intangible assets 17 6,244.06 7,008.52
(g) Other non-financial assets 18 12,615.32 8,533.26
Total assets 84,12,282.41 56,96,920.43
II LIABILITIES AND EQUITY
Liabilities
1 Financial liabilities
(a) Derivative financial instruments 8 1,369.24 7,799.24
(b) Payables
(I) Trade Payables
(i) total outstanding dues of micro enterprises and small enterprises 19 288.81 696.87
(ii) total outstanding dues of creditors other than micro enterprises and small 19 69,467.65 23,524.76
enterprises
(II) Other Payables
(i) total outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises - -
(c) Debt securities 20 23,53,485.51 15,78,125.70
(d) Borrowings (other than debt securities) 21 44,78,597.46 27,71,715.04
(e) Subordinated liabilities 22 2,44,990.45 2,48,733.99
(f) Lease liabilities 23 19,648.20 12,910.38
(g) Other financial liabilities 24 68,919.82 47,013.29
2 Non-financial liabilities
(a) Current tax liabilities (Net) 25 13,664.09 1,513.10
(b) Provisions 26 6,463.72 10,421.69
(c) Other non-financial liabilities 27 12,766.33 8,424.39
Total liabilities 72,69,661.28 47,10,878.45
Equity
(a) Equity share capital 28 66,210.08 66,210.08
(b) Other equity 29 10,76,411.05 9,19,831.90
Total equity 11,42,621.13 9,86,041.98
Total liabilities and equity 84,12,282.41 56,96,920.43
Summary of significant accounting policies 4
The accompanying notes are forming part of the financial statements.
As per our report of even date attached.
For Deloitte Haskins & Sells LLP For Singhi & Co. For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Aditya Birla Finance Limited
ICAI Firm Reg. No: 117366W/W-100018 ICAI Firm Reg. No: 302049E
per Sanjiv V. Pilgaonkar per Amit Hundia Vishakha Mulye Rakesh Singh
Partner Partner Director Managing Director and Chief Executive Officer
Membership No: 039826 Membership No: 120761 DIN - 00203578 DIN - 07006067
Pradeep Agrawal Ankur Shah
Place: Mumbai Place: Mumbai Place: Mumbai
Date: 09th May, 2023 Date: 09th May, 2023 Date: 09th May, 2023

Statement of Profit and Loss

for the year ended 31st March, 2023
(₹ in Lakhs)
Particulars Note No.
Revenue from operations
(i) Interest income 31 7,80,603.81 5,53,128.87
(ii) Dividend income 32 284.97 285.31
(iii) Fees and commission income 33 41,098.09 24,880.80
(iv) Net gain on fair value changes 34 1,699.96 190.62
(I) Total revenue from operations 8,23,686.83 5,78,485.60
(II) Other income 35 3,080.88 1,201.65
(III) Total income (I + II) 8,26,767.71 5,79,687.25
Expenses
(i) Finance costs 36 3,85,717.77 2,70,909.59
(ii) Impairment on financial instruments 37 90,347.54 65,346.00
(iii) Employee benefit expenses 38 72,283.39 52,072.80
(iv) Depreciation, amortization and impairment 39 8,613.28 6,835.39
(v) Other expenses 40 60,787.35 35,811.83
(IV) Total expenses 6,17,749.33 4,30,975.61
(V) Profit before exceptional items and tax (III - IV) 2,09,018.38 1,48,711.64
(VI) Exceptional items - -
(VII)Profit before tax (V- VI) 2,09,018.38 1,48,711.64
(VIII)
Tax expense:
(1) Current tax 41 68,583.07 38,609.10
(2) Deferred Tax Expenses / (Benefits)- (Net) 41 (14,940.44) (730.52)
(IX) Profit for the year 1,55,375.75 1,10,833.06
(X) Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement gain on defined benefit plan 428.00 531.55
Income tax impact of above (107.72) (133.78)
320.28 397.77
Changes in fair value of equity instruments carried at FVTOCI 73.47 24.22
Income tax impact of above (18.49) (6.10)
54.98 18.12
Items that will be reclassified to profit or loss
Fair Value change on derivatives designated as cash flow hedge 460.95 2,578.79
Income tax impact on above (116.01) (649.03)
344.94 1,929.76
Other comprehensive income for the year 720.20 2,345.65
Total comprehensive income for the year 1,56,095.95 1,13,178.71
(XI) Earnings per equity share (Face Value ₹ 10 per equity share)
Basic (₹) 42 23.47 16.74
Diluted (₹) 42 23.46 16.74
Summary of significant accounting policies 4


Cash Flows Statement
(₹ in Lakhs)
Particulars
Operating activities
Profit before tax 2,09,018.38 1,48,711.64
Adjustments for reconcile profit before tax to net cash flow:
Depreciation/amortisation and impairment 8,613.28 6,835.39
Impairment on financial instruments 90,347.54 65,346.00
Interest on deposit with banks (274.52) (1,262.58)
Net loss/(gain) on fair value changes (1,699.96) (190.62)
(Gain)/loss on sale of property, plant and equipment 33.10 6.00
Dividend income (284.97) (285.31)
Interest income on investment (12,095.99) (7,336.05)
Finance cost on lease liability 1,005.54 892.61
Profit on surrender of lease liability/income from rent concession (124.76) (392.09)
Share based payment expenses 483.19 -
Operating Profit before working capital changes 2,95,020.83 2,12,324.99
Adjustment for working capital changes
(Increase) in loans (26,13,183.94) (6,69,763.97)
Decrease/(increase) in trade receivables (2,828.68) (329.79)
(Increase)/decrease in other financial assets (9,889.86) (568.03)
(Increase)/decrease in other non-financial assets (3,142.52) (12.69)
Increase in trade payables 45,534.83 13,049.32
Increase/(decrease) in other financial liabilities 21,279.01 (12,420.51)
(Decrease)/increase in provisions (3,529.97) 2,890.73
(Decrease) in other non-financial liabilities 4,341.94 3,361.16
(22,66,398.36) (4,51,468.79)
Income taxes paid (Net) (37,343.73) (48,830.08)
Net cash flow from/(used in) operating activities (23,03,742.09) (5,00,298.87)
Investing activities
Purchase of intangible assets including assets under development (2,975.69) (3,302.51)
Proceeds from sale of property, plant and equipment 74.00 155.15
Purchase of property, plant and equipment (6,009.91) (1,646.48)
Proceeds from sale of long term investments 1,841.72 1,500.91
Purchase of long term investments (25,736.84) (3,014.37)
Net (purchase)/sale of short term investments (1,71,877.62) (83,985.92)
Dividend received 284.97 285.31
Interest received on deposit with banks 306.16 1,244.03
Deposit placed/Redemption during the year 9,649.73 (7,749.73)
Interest received on investment 7,461.35 6,450.11
Net cash flow from/(used in) investing activities (1,86,982.13) (90,063.50)
Financing activities
Proceeds from long term borrowings 31,67,898.63 12,65,274.81
Repayment of long term borrowings (11,66,686.01) (9,44,403.00)
Short-term borrowings (Net) 4,71,869.05 1,91,743.51
Lease payments (3,165.16) (2,855.71)

(₹ in Lakhs)
Particulars
Dividend paid - (10,924.66)
Net cash flow from/(used in) financing activities 24,69,916.51 4,98,834.95
Net increase/(decrease) in cash and cash equivalents (20,807.71) (91,527.42)
Cash and cash equivalents at beginning of the year 59,571.14 1,51,098.56
Cash and cash equivalents at the end of the year 38,763.43 59,571.14
Components of cash and cash equivalents
Balance with banks
In current accounts 38,763.43 59,571.14
Total cash and cash equivalents 38,763.43 59,571.14
Cash Flow from Operations includes:
Interest received 7,37,452.44 5,42,780.97
Interest paid 3,78,447.38 2,98,603.08
Additional disclosure pursuant to Ind AS 7

Particulars
Opening balance of Debt securities, borrowings (other than debt securities) and subordinated 45,98,574.73 41,21,518.38
liabilities
Cash flow 24,73,081.67 5,12,615.32
Fair value adjustment (847.84) (6,972.87)
Interest accrued on borrowings 6,264.85 (28,586.10)
Closing balance of Debt securities, borrowings (other than debt securities) and subordinated 70,77,073.42 45,98,574.73
liabilities
* The above Statement of Cash Flows has been prepared under the indirect method as set out in Ind AS 7 ‘Statement of Cash Flows’.
* Purchase of investments is after adjustments of proceeds from sale / redemption of mutual fund.
* Borrowings includes proceeds and repayment of debt securities, borrowings (other than debt securities) and subordinate liabilities.
Summary of significant accounting policies: Note 4



Statement of changes in Equity
A. EQUITY SHARE CAPITAL

For the year ended 31st March, 2023
(₹ in Lakhs)
Changes in equity Restated balance Changes in equity
Balance as at 01st Balance as at
Particulars share capital due to as at 01st April, share capital
April, 2022 31st March, 2023
prior period errors 2022 during the year
Equity shares of ₹ 10 each issued, 66,210.08 - 66,210.08 - 66,210.08
subscribed and fully paid

(₹ in Lakhs)
Changes in equity Restated balance Changes in equity
Balance as at 01st Balance as at
Particulars share capital due to as at 01st April, share capital
April, 2021 31st March, 2022
prior period errors 2021 during the year
Equity shares of ₹ 10 each issued, 66,210.08 - 66,210.08 - 66,210.08
subscribed and fully paid

B. OTHER EQUITY
(₹ in Lakhs)
Total other
Reserves and Surplus Other comprehensive income
equity
Equity
Particulars Share
Securities Capital instruments Cash flow
Special Capital General Options Retained
premium redemption through other hedge
reserve reserve reserve Outstanding earnings
account reserve comprehensive reserve
Account
income
Balance as at 1st April, 2021 97,984.64 3,63,738.29 (10,452.11) 13,660.95 1,000.00 - 3,53,991.63 154.40 (2,499.94) 8,17,577.86
Changes in accounting policy or - - - - - - - - - -
prior period errors
Restated balance as at 1st 97,984.64 3,63,738.29 (10,452.11) 13,660.95 1,000.00 - 3,53,991.63 154.40 (2,499.94) 8,17,577.86
April, 2021
Profit for the year - - - - - - 1,10,833.06 - - 1,10,833.06
Fair Value change on derivatives - - - - - - - - 1,929.76 1,929.76

designated as cash flow hedge
Dividend Paid (Interim) - - - - - - (10,924.66) - - (10,924.66)
Other comprehensive income - - - - - - 397.77 18.12 - 415.89
Total comprehensive Income - - - - - - 1,00,306.17 18.12 1,929.76 1,02,254.05
Transfer to/from retained earnings 24,366.61 - - - - - (24,366.61) - - -
Balance as at 31st March, 2022 1,22,351.25 3,63,738.29 (10,452.11) 13,660.95 1,000.00 - 4,29,931.19 172.52 (570.18) 9,19,831.90
Balance as at 01st April, 2022 1,22,351.25 3,63,738.29 (10,452.11) 13,660.95 1,000.00 - 4,29,931.19 172.52 (570.18) 9,19,831.90
Changes in accounting policy or - - - - - - - - - -
prior period errors
Restated balance as at 1,22,351.25 3,63,738.29 (10,452.11) 13,660.95 1,000.00 - 4,29,931.19 172.52 (570.18) 9,19,831.90
1st April, 2022
Profit for the year - - - - - - 1,55,375.75 - - 1,55,375.75
Fair Value change on derivatives - - - - - - - - 344.94 344.94
designated as cash flow hedge
ESOP Charge for the Year - - - - - 483.19 - - - 483.19
Statement of changes in Equity
Other comprehensive income - - - - - - 320.28 54.98 - 375.26

Total comprehensive Income - - - - - 483.19 1,55,696.03 54.98 344.94 1,56,579.14
Transfer to/from retained earnings 31,075.15 - - - - - (31,075.15) - - -
Balance as at 31st March, 2023 1,53,426.40 3,63,738.29 (10,452.11) 13,660.95 1,000.00 483.19 5,54,552.07 227.50 (225.24) 10,76,411.05
Summary of significant accounting policies: Note 4
OVERVIEW
CORPORATE

REPORTS
STATUTORY

Annual Report 2022-23

FINANCIAL
STATEMENTS
113
Notes to the Financial Statements
NOTE 1: CORPORATE INFORMATION - BRIEF historical cost convention, as modified by the application of fair
value measurements required or allowed by relevant accounting
DESCRIPTION ABOUT THE COMPANY standards. Accounting policies have been consistently
Aditya Birla Finance Limited ('ABFL' or 'the Company') is a public applied to all periods presented, unless otherwise stated.
company domiciled in India incorporated on 28th August, 1991 The preparation of financial statements requires the use of
under the provisions of the Companies Act, 1956. certain critical accounting estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues
The Company is registered with Reserve Bank of India (RBI) as non- and expenses and the disclosed amount of contingent
deposit taking systematically important Non Banking Financial liabilities. Areas involving a higher degree of judgement
Company (NBFC) with Registration no. N-01.00500 and is certified or complexity, or areas where assumptions are significant
as ISO 9001: 2015 for all its Business processes by Intertek. to the Company are discussed in Note 5 - Significant
The Company is also certified with ISO 27001: 2013 - accounting judgements, estimates and assumptions.
Information security Management System (ISMS) for Human The financial statements are presented in Indian Rupees (INR)
resource and administration, Information Technology and and all values are rounded to the nearest lakh, except when
Internal audit & compliance functions. otherwise indicated.
The Company is among the leading well-diversified financial

services company in India offering end-to-end lending,
NOTE 3: PRESENTATION OF FINANCIAL
financing and wealth management solutions to a diversified STATEMENTS:
range of customers across the country. The financial statements of the Company are presented as per
Schedule III (Division III) of the Companies Act, 2013 applicable
The Company is one of the wholly owned subsidiary of Aditya to NBFCs, as notified by the Ministry of Corporate Affairs (MCA).
Birla Capital Limited and the ultimate parent company is Grasim Financial assets and financial liabilities are generally reported
Industries Limited. on a gross basis except when, there is an unconditional legally
enforceable right to offset the recognised amounts without
The registered office of the Company is Indian Rayon Compound, being contingent on a future event and the parties intend to
Veraval, Gujarat - 362266. settle on a net basis in the following circumstances:
i. The normal course of business

The audited financial statements were subject to review and
recommendation of Audit Committee and approval of Board of ii. The event of default
Directors. On 09th May, 2023 Board of Directors of the Company
iii. The event of insolvency or bankruptcy of the Company
approved and recommended the audited financial statements
and/or its counterparties
for consideration and adoption by the shareholders in its Annual
General Meeting. Functional and Presentation currency
The financial statements are presented in Indian rupees
NOTE 2: BASIS OF PREPARATION (rounded to the nearest lakhs) which is determined to be the
The financial statements of the Company have been prepared in functional currency of the Company and the currency of the
accordance with Indian Accounting Standards (Ind AS) prescribed primary economic environment in which the Company operates.
under Section 133 of the Companies Act, 2013 read together
with the Companies (Indian Accounting Standards) Rules, 2015, NOTE 4: SIGNIFICANT ACCOUNTING POLICIES:
as amended from time to time and other relevant provisions of Note 4.1: Financial Instruments
the Act and the guidelines and directives issued by the Reserve
A financial instrument is any contract that gives rise to a
Bank of India (RBI), to the extent applicable. The financial
financial asset of one entity and a financial liability or equity
statements have been prepared and presented on going concern
instrument of another entity.
basis. The financial statements have been prepared under the


Note 4.1 (i): Classification of financial instruments arrangement i.e. interest includes only consideration for the time
value of money, credit risk, other basic lending risks and a profit
The classification depends on the contractual terms of the
margin that is consistent with a basic lending arrangement.
financial assets’ cash flows and the Company’s business model
Where the contractual terms introduce exposure to risk or
for managing financial assets.
volatility that are inconsistent with a basic lending arrangement,
the related financial asset is classified and measured at fair
The Company determines its business model at the level that
value through profit or loss.
best reflects how it manages groups of financial assets to
achieve its business objective.
Sales that are infrequent and insignificant in value both
The Company classifies its financial assets into the following individually and in aggregate are considered to be consistent
measurement categories: with the business model whose objective is to hold and collect
the contractual cash flows.
1. Financial assets to be measured at amortised cost
2. Financial assets to be measured at fair value through other The Company classifies its financial liabilities at amortised costs
comprehensive income unless it has designated liabilities at fair value through the profit
and loss account or is required to measure liabilities at fair value
3. Financial assets to be measured at fair value through profit
through profit or loss.
or loss account
Note 4.1 (ii): Financial assets

The business model is assessed on the basis of aggregated
portfolios based on observable factors. These factors include: Initial recognition and measurement
All financial assets are recognised initially at fair value plus,
• Reports reviewed by the entity's key management personnel
except in the case of financial assets not recorded at fair value
on the performance of the financial assets.
through profit or loss, transaction costs that are attributable to
• The risks impacting the performance of the business model the acquisition of the financial asset. However, trade receivables
(and the financial assets held within that business model) that do not contain a significant financing component are
and its management thereof. measured at transaction price.
• The compensation of the managing teams (for example,
whether the compensation is based on the fair value of the Subsequent measurement - Financial assets measured
assets managed or on the contractual cash flows collected). at amortised cost
• The expected frequency, value and timing of trades. A ‘debt instrument’ is measured at the amortised cost if both
The business model assessment is based on reasonably the following conditions are met:
expected scenarios without taking 'worst case' or 'stress
a) The asset is held within a business model whose objective
case’ scenarios into account.
is to hold assets for collecting contractual cash flows, and
The Company also assesses the contractual terms of b) Contractual terms of the asset give rise on specified dates
financial assets on the basis of its contractual cash to cash flows that are solely for the payments of principal
flow characteristics that are solely for the payments of and interest on the principal amount outstanding.
principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently
‘Principal’ is defined as the fair value of the financial asset at
measured at amortised cost using the Effective Interest Rate
initial recognition and may change over the life of the financial
method (EIR). Amortised cost is calculated by taking into
asset (for example, if there are repayments of principal or
account any fees or costs that are an integral part of the EIR. The
amortisation of the premium/discount).
amortisation is included in Interest income in the Statement
of Profit and Loss. The losses arising from impairment are
In making this assessment, the Company considers whether
recognised in the Statement of Profit and Loss.
the contractual cash flows are consistent with a basic lending

These financial assets comprise bank balances, trade instrument, which does not meet the criteria for categorization
receivables, loans and other financial assets. as at amortized cost or as FVTOCI, is classified at FVTPL.
Subsequent measurement - Financial assets measured at In addition, the Company may elect to designate a debt
fair value through other comprehensive income instrument, which otherwise meets amortized cost or FVTOCI
Debt instruments: A ‘debt instrument’ is classified as at the criteria, at FVTPL. However, such election is allowed only if
Fair Value through Other Comprehensive Income (FVTOCI) if doing so reduces or eliminates a measurement or recognition
both of the following criteria are met: inconsistency (referred to as ‘accounting mismatch’).
a) The objective of the business model is achieved both by Debt instruments included within the FVTPL category are
collecting contractual cash flows and selling the financial measured at fair value with all changes recognized in the
assets, and Statement of Profit and Loss.
b) The asset’s contractual cash flows represent Solely Note 4.1 (iii): Financial Liabilities
Payment of Principal and Interest(SPPI).
Initial recognition and measurement
Debt instruments included within the FVTOCI category are All financial liabilities are recognised initially at fair value and,
measured initially as well as at each reporting date at fair in the case of loans and borrowings and payables, net of
value. Fair value movements are recognized in the Other directly attributable transaction costs. The Company’s financial
Comprehensive Income (OCI). However, the Company recognizes liabilities include borrowings including Company overdrafts and
interest income, impairment losses and reversals and foreign trade and other payables.
exchange gain or loss in the Statement of Profit and Loss. On
derecognition of the asset, cumulative gain or loss previously Subsequent measurement
recognised in OCI is reclassified from the equity to Statement The measurement of financial liabilities depends on
of Profit and Loss. Interest earned whilst holding FVTOCI debt their classification.
instrument is reported as interest income using the EIR method.
After initial recognition, interest-bearing loans and borrowings
Equity Instruments: All equity investments in scope of Ind AS are subsequently measured at amortised cost using the EIR
109 are measured at fair value. For all such equity investments, method. Gains and losses are recognised in Statement of
the Company may make an irrevocable election to present in Profit and Loss when the liabilities are derecognised as well as
OCI the subsequent changes in the fair value. The Company through the EIR amortisation process.
makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable. Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
If the Company decides to classify an equity instrument at part of the EIR. The EIR amortisation is included as finance costs
FVTOCI, then all fair value changes on the instrument, excluding in the Statement of Profit and Loss.
dividends, are recognized in the OCI. There is no recycling of
the amounts from OCI to Statement of Profit and Loss, even Note 4.1 (iv): Recognition and Derecognition of financial
on sale of investment. However, the Company may transfer the assets and liabilities
cumulative gain or loss within equity. Recognition:
A financial asset or financial liability is recognised in the balance
Equity instruments included within the Fair Value through Profit
sheet when the Company becomes a party to the contractual
or Loss (FVTPL) category are measured at fair value with all
provisions of the instrument, which is generally on trade date.
changes recognized in the Statement of Profit and Loss.
Loans and receivables are recognised when cash is advanced
(or settled) to the borrowers. Financial assets at fair value
Subsequent measurement - Items at fair value through
through profit or loss are recognised initially at fair value. All
profit or loss
other financial assets are recognised initially at fair value plus
FVTPL is a residual category for debt instruments. Any debt directly attributable transaction costs.


Derecognition: and risk exposure, the Company determines that whether

Financial assets there has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased significantly,
A financial asset (or, where applicable, a part of a financial
12-month ECL is used to provide for impairment loss. However,
asset or part of a group of similar financial assets) is primarily
if credit risk has increased significantly, lifetime ECL is used. If, in
derecognised when:
a subsequent period, credit quality of the instrument improves
such that there is no longer a significant increase in credit risk
(a) The right to receive cash flows from the asset have
since initial recognition, then the entity reverts to recognising
expired, or
impairment loss allowance based on 12-month ECL.
(b) The Company has transferred its right to receive cash
The Company has established a policy to perform an assessment
flows from the asset or has assumed an obligation to pay
at the end of each reporting period of whether credit risk has
the received cash flows in full without material delay to
increased significantly since initial recognition by considering
a third party under a ‘pass-through’ arrangement; and
the change in the risk of default occurring over the remaining
either (i) the Company has transferred substantially all
life of the financial instrument.
the risks and rewards of the asset, or (ii) the Company has
neither transferred nor retained substantially all the risks
To calculate ECL, the Company estimate the risk of a default
and rewards of the asset, but has transferred control of
occurring on the financial instrument during its expected life.
the asset.
ECLs are estimated based on the present value of all cash
shortfalls over the remaining expected life of the financial asset
Financial Liabilities
i.e., the difference between the contractual cash flows that are
A financial liability is derecognised when the obligation under due to the Company under the contract, and the cash flows that
the liability is discharged or cancelled or expires. the Company expects to receive are discounted at the effective
interest rate of the loan.
When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of The Company groups its loans into Stage 1, Stage 2 and
an existing liability are substantially modified, such an exchange Stage 3, based on the applied impairment methodology, as
or modification is treated as the derecognition of the original described below:
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in the Statement Stage 1: 12-months ECL
of Profit and Loss.
For exposures where there has not been a significant increase
in credit risk since initial recognition and that are not credit
Note 4.1 (v): Impairment of financial assets impaired upon origination, the portion of the lifetime ECL
In accordance with Ind AS 109, the Company applies expected associated with the probability of default events occurring
credit loss (ECL) model for measurement and recognition of within the next 12 months is recognised.
impairment loss on the following financial assets and credit
risk exposure: Stage 2: Lifetime ECL – not credit impaired
a) Financial assets that are debt instruments are measured For exposures where there has been a significant increase in
at amortised cost e.g., loans, debt securities, deposits, credit risk since initial recognition but are not credit impaired, a
and other balances lifetime ECL (i.e. reflecting the remaining lifetime of the financial
asset) is recognised.
b) Financial assets that are measured as at FVTOCI
c) Loan commitments which are not measured as at FVTPL Stage 3: Lifetime ECL – credit impaired
d) Financial guarantee contracts which are not measured as Exposures are assessed as credit impaired when one or more
at FVTPL. events that have a detrimental impact on the estimated future
cash flows of that asset have occurred. For exposures that
For recognition of impairment loss on other financial assets have become credit impaired, a lifetime ECL is recognised and

interest revenue is calculated by applying the effective interest Note 4.1 (viii): Derivative Financial Instruments and
rate to the amortised cost (net of provision) rather than the Hedge Accounting:
gross carrying amount.
The Company enters into forward contracts to hedge the foreign
currency risk of firm commitments and highly probable forecast
ECL impairment loss allowance (or reversal) during the period is
transactions. Derivatives are initially recognised at fair value
recognized as income/ expense in the statement of profit and
at the date the derivative contracts are entered into and are
loss. This amount is reflected under the head ‘Impairment on
subsequently re-measured to their fair value at the end of each
financial instruments’ in the Statement of Profit and Loss. On
reporting period. The resulting gain or loss is recognised in the
the other side, for financial assets measured as at amortised
Statement of Profit and Loss immediately unless the derivative
cost, ECL is presented as an allowance, i.e., as an integral part
is designated and effective as a hedging instrument, in which
of the measurement of those assets in the balance sheet.
event the timing of the recognition in the Statement of Profit
The allowance reduces the net carrying amount. Until the
and Loss depends on the nature of the hedging relationship
asset meets write-off criteria, the Company does not reduce
and the nature of the hedged item.
impairment allowance from the gross carrying amount.
The Company enters into derivative financial instruments viz.

In terms of the requirement as per RBI notification no. RBI/2019-
foreign exchange forward contracts, interest rate swaps and
20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated
cross currency swaps to manage its exposure to interest rate
13th March, 2020 on Implementation of Indian Accounting
and foreign exchange rate risks. The Company does not hold
Standards, Non-Banking Financial Companies (NBFCs) are
derivative financial instruments for speculative purposes.
required to create an impairment reserve for any shortfall
in impairment allowances under Ind AS 109 and Income
Hedge Accounting : The Company designates certain hedging
Recognition, Asset Classification and Provisioning (IRACP)
instruments in respect of foreign currency risk and interest rate
norms (including provision on standard assets). The impairment
risk as cash flow hedges. Such hedges are expected to be highly
allowances under Ind AS 109 made by the company exceeds
effective in achieving offsetting changes in fair value or cash
the total provision required under IRACP (including standard
flows, and are assessed on an ongoing basis to determine that
asset provisioning), as at 31st March, 2023 and accordingly,
they actually have been highly effective throughout the financial
no amount is required to be transferred to impairment reserve.
reporting periods for which they were designated.
Note 4.1 (vi): Offsetting of financial instruments The effective portion of changes in the fair value of the
Financial assets and financial liabilities are offset and the net designated portion of derivatives that qualify as cash flow
amount is reported in the balance sheet if there is a currently hedges is recognised in Other Comprehensive Income and
enforceable legal right to offset the recognised amounts and accumulated under the heading of cash flow hedging reserve.
there is an intention to settle on a net basis, to realise the assets The gain or loss relating to the ineffective portion is recognised
and settle the liabilities simultaneously. immediately in the Statement of Profit and Loss.
Note 4.1 (vii): Write-offs Amounts previously recognised in Other Comprehensive Income
The Company reduces the gross carrying amount of a financial and accumulated in other equity relating to (effective portion as
asset when the Company has no reasonable expectations of described above) are re-classified to the Statement of Profit and
recovering a financial asset in its entirety or a portion thereof. Loss in the periods when the hedged item affects profit or loss.
This is generally the case when the Company determines that However, when the hedged forecast transaction results in the
the borrower does not have assets or sources of income that recognition of a non-financial asset or a non-financial liability,
could generate sufficient cash flows to repay the amounts such gains and losses are transferred from equity and included
subjected to write-offs. The Company reserves the right to in the initial measurement of the cost of the non-financial asset
recover such written off amount. Any subsequent recoveries or non-financial liability.
against such loans are credited to the statement of profit
and loss.


Hedge accounting is discontinued when the hedging instrument All assets and liabilities for which fair value is measured or
expires, terminated, or exercised, without replacement or disclosed in the financial statements are categorised within the
rollover (as part of the hedging strategy), or if its designation fair value hierarchy, described as follows, based on the lowest
as a hedge is revoked, or when it no longer qualifies for hedge level input that is significant to the fair value measurement as
accounting. Any gain or loss recognised in Other Comprehensive a whole:
Income and accumulated in other equity at that time remains in
other equity and is recognised when the forecast transaction • Level 1 — Quoted (unadjusted) market prices in active
is ultimately recognised in Statement of Profit and Loss. When markets for identical assets or liabilities
a forecast transaction is no longer expected to occur, the gain • Level 2 — Valuation techniques for which the lowest level
or loss accumulated in other equity is recognised immediately input that is significant to the fair value measurement is
in the Statement of Profit and Loss. directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level
Note 4.1 (ix): Determination of fair value input that is significant to the fair value measurement
On initial recognition, all the financial instruments are measured is unobservable
at fair value. For subsequent measurement, the Company
measures certain categories of financial instruments (as For assets and liabilities that are recognised in the financial
explained in note 4.1 (ii) and (iii)) at fair value on each balance statements on a recurring basis, the Company determines
sheet date. whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation at the end of each
Fair value is the price that would be received to sell an asset reporting period.
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value Note 4.2: Revenue from operations
measurement is based on the presumption that the transaction
Note 4.2 (i): Interest Income:
to sell the asset or transfer the liability takes place either:
For all debt instruments measured either at amortised cost
• In the principal market for the asset or liability, or or at fair value through other comprehensive income, interest
• In the absence of a principal market, in the most advantageous income is recorded using the EIR. EIR is the rate that exactly
market for the asset or liability discounts the estimated future cash payments or receipts over
the expected life of the financial instrument or a shorter period,
The principal or the most advantageous market must be where appropriate, to the gross carrying amount of the financial
accessible by the Company. asset or to the amortised cost of a financial liability. When
calculating the effective interest rate, the Company estimates
The fair value of an asset or a liability is measured using the the expected cash flows by considering all the contractual terms
assumptions that market participants would use pricing the of the financial instrument (for example, prepayment, extension,
asset or liability, assuming that market participants act in their call and similar options) but does not consider the expected
economic best interest. credit losses.
A fair value measurement of a non-financial asset takes into Any subsequent changes in the estimation of the future cash
account a market participant’s ability to generate economic flows is recognised in interest income with the corresponding
benefits by using the asset in its highest and best use or by adjustment to the carrying amount of the assets.
selling it to another market participant that would use the asset
in its highest and best use. Interest income on credit impaired assets is recognised by
applying the effective interest rate to the net amortised cost
The Company uses valuation techniques that are appropriate in (net of provision) of the financial asset.
the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

Note 4.2 (ii): Dividend Income Step 5: Recognise revenue when (or as) the Company satisfies
a performance obligation.
Dividend income is recognised
a. When the right to receive the payment is established which Note 4.2 (v): Net gain/(loss) on Fair value changes
is generally when shareholders approve the dividend,
Any differences between the fair values of financial assets
b. it is probable that the economic benefits associated with classified as fair value through the profit or loss (refer Note
the dividend will flow to the entity an 34), held by the Company on the balance sheet date is
recognised as an unrealised gain/(loss). In cases there is a net
c. the amount of the dividend can be measured reliably
gain/(loss) in the aggregate, the same is recognised in “Net
gains on fair value changes” under Revenue from operations
Note 4.2 (iii): Rental Income
in the statement of Profit and Loss. Similarly, any realised
Rental income arising from operating leases is recognised gain or loss on sale of financial instruments measured at
on a straight-line basis over the lease term. In cases where FVTPL is recognised in net gain/(loss) on fair value changes.
the increase is in line with expected general inflation. Similarly, any differences between the fair values of financial
Rental Income is recognised as per the contractual terms. assets classified as fair value through other comprehensive
Operating leases are leases where the Company does not income are disclosed in the OCI.
transfer substantially all of the risk and benefits of ownership
of the asset. However, net gain/(loss) on derecognition of financial
instruments classified as amortised cost is presented separately
Note 4.2 (iv): Fees & Commission Income under the respective head in the Statement of Profit and Loss.
Fees and commissions are recognised when the Company
satisfies the performance obligation, at transaction price based Note 4.3: Expenses
on a five-step model as set out below, unless included in the Note 4.3 (i): Finance Costs
effective interest calculation:
Finance costs represents Interest expense recognised by
applying the EIR to the gross carrying amount of financial
Step 1: Identify contract(s) with a customer: A contract is
liabilities other than financial liabilities classified as FVTPL.
defined as an agreement between two or more parties that
Interest expense includes issue costs that are initially
creates enforceable rights and obligations and sets out the
recognized as part of the carrying value of the financial liability
criteria for every contract that must be met.
and amortized over the expected life using the effective
interest method. These include fees and commissions payable
Step 2: Identify performance obligations in the contract:
to advisers and other expenses such as external legal costs,
A performance obligation is a promise in a contract with a
provided these are incremental costs that are directly related
customer to transfer a good or service to the customer.
to the issue of a financial liability.
Step 3: Determine the transaction price: The transaction price

Note 4.3 (ii): Retirement and other employee benefits
is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or Short term employee benefit
services to a customer, excluding amounts collected on behalf All employee benefits payable wholly within twelve months of
of third parties. rendering the service are classified as short-term employee
benefits. These benefits include short term compensated
Step 4: Allocate the transaction price to the performance absences such as paid annual leave. The undiscounted amount
obligations in the contract. For a contract that has more of short-term employee benefits expected to be paid in exchange
than one performance obligation, the Company allocates for the services rendered by employees is recognised as an
the transaction price to each performance obligation in an expense during the period. Benefits such as salaries and wages,
amount that depicts the amount of consideration to which the etc. and the expected cost of the bonus/ex-gratia are recognised
Company expects to be entitled in exchange for satisfying each in the period in which the employee renders the related service.
performance obligation.


Post employment employee benefit period in which they occur. Remeasurements are not
a) Defined contribution schemes reclassified to profit or loss in subsequent periods.
The Company makes defined contribution to Government

Past service costs are recognised in profit or loss at the
managed Employee Provident Fund, Government managed
earliest of:
Employee Pension Fund, Employee Deposit Linked
Insurance, Employee State Insurance and Superannuation • The date of the plan amendment or curtailment, and
Schemes which are recognised in Statement of Profit and • The date that the Company recognises related
Loss on accrual basis. Payments to defined contribution restructuring costs.
retirement benefit plans are recognised as an expense
when employee have rendered the service entitling them N et interest is calculated by applying the discount
to the contribution. rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
If the contribution payable to the scheme for service net defined benefit obligation under employee benefit
received before the Balance Sheet date exceeds the expenses in the Statement of Profit and Loss.
contribution already paid, the deficit payable to the scheme • Service costs comprising current service costs, past-
is recognised as a liability after deducting the contribution service costs, gains and losses on curtailments and
already paid. If the contribution already paid exceeds the non-routine settlements,
contribution due for services received before the Balance
• Net interest expense or income.
Sheet date, then excess is recognised as an asset to the
extent that the pre-payment will lead to, for example, a
An actuarial valuation involves making various assumptions
reduction in future payment or a cash refund.
that may differ from actual developments in the future.
These include the determination of the discount rate,
b) Defined benefit expenses
attrition rate, future salary increases and mortality rates.
The Company’s liabilities under Payment of Gratuity Act Due to the complexities involved in the valuation and its
and long term compensated absences are determined long-term nature, these liabilities are highly sensitive
on the basis of actuarial valuation made at the end of to changes in these assumptions. All assumptions are
each financial year using the projected unit credit method. reviewed at each reporting date.
Actuarial gain and losses are recognised immediately
in Statement of Profit and Loss as income or expense. Other long-term employee benefits
Obligation is measured at the present value of estimated
Company’s liabilities towards compensated absences to
future cash flows using a discounted rate that is determined
employees are accrued on the basis of valuations, as at the
by reference to market yields at the Balance Sheet date on
Balance Sheet date, carried out by an independent actuary
Government bonds where the currency and terms of the
using Projected Unit Credit Method. Actuarial gains and
Government bonds are consistent with the currency and
losses comprise experience adjustments and the effects
estimated terms of the defined benefit obligation.
of changes in actuarial assumptions and are recognised
immediately in the Statement of Profit and Loss.
The Company presents the entire leave as a provision in the
The Company presents the Provision for compensated
Balance Sheet, since it does not have any unconditional
absences under provisions in the Balance Sheet.
right to defer its settlement for twelve months after the
reporting date.
Note 4.3 (iii): Share-based payments
Remeasurements, comprising of actuarial gains and losses, The Parent Company (Aditya Birla Capital Limited) issues
the effect of the asset ceiling, excluding amounts included stock options to certain employees of the Company. These
in net interest on the net defined benefit liability and the transactions are recognised as equity-settled share based
return on plan assets (excluding amounts included in net payment transactions by Parent company. The stock
interest on the net defined benefit liability), are recognised compensation expense is determined based on grant date fair
immediately in the balance sheet with a corresponding value of options and is recognised on a straight line basis over
debit or credit to retained earnings through OCI in the the vesting period in the statement of profit and loss.

Equity-settled share-based payments to employees are Certain lease arrangements includes the options to extend or
measured by reference to the fair value of the equity instruments terminate the lease before the end of the lease term. ROU
at the grant date using Black–Scholes Model. assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.
The fair value, determined at the grant date of the equity settled
share-based payments, is charged to profit and loss on the The right-of-use assets are initially recognized at cost, which
straight-line basis over the vesting period of the option, based comprises the initial amount of the lease liability adjusted for
on the Company’s estimate of equity instruments that will any lease payments made at or prior to the commencement
eventually vest, with a corresponding increase in equity. date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
In case of forfeiture/lapse stock option, which is not accumulated depreciation and impairment losses.
vested, amortised portion is reversed by credit to employee
compensation expense. In situation where the stock option Right-of-use assets are depreciated from the commencement
expires unexercised, the related balance standing to the date on a straight-line basis over the shorter of the lease term
credit of the Employee Stock Options Outstanding Account is and useful life of the under lying asset. Right of use assets
transferred within equity. are evaluated for recoverability whenever events or changes
in circumstances indicate that their carrying amounts may not
Note 4.3 (iv): Rent expense be recoverable. For the purpose of impairment testing, the
In case of short term leases and leases for which the underlying recoverable amount (i.e. the higher of the fair value less cost
asset is of low value, the company has elected not to apply the to sell and the value in use) is determined on an individual
requirements of Ind AS 116 and the lease payments associated asset basis unless the asset generates cash flows that are
with those leases are recognised as rent expense on a straight largely dependent of those from other assets. In such cases,
line basis. the recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.
Note 4.3 (v): Leases
The lease liability is initially measured at amortised cost at the
The Company as a lessee
present value of the future lease payments. The lease payments
The Company’s lease assets primarily consist of leases for are discounted using the interest rate implicit in the lease or,
office buildings. The Company assesses whether a contract if not readily determinable, using the incremental borrowing
contains a lease, at inception of a contract. A contract is, or rates in the country of domicile of the leases. Lease liabilities
contains, a lease if the contract conveys the right to control the are remeasured with a corresponding adjustment to the related
use of an identified asset for a period of time in exchange for right of use asset if the Company changes its assessment on
consideration. To assess whether a contract conveys the right exercise of an extension or a termination option.
to control the use of an identified asset, the Company assesses
whether: (1) the contract involves the use of an identified asset Lease liability and ROU asset have been separately presented
(2) the Company has substantially all of the economic benefits in the Balance Sheet and lease payments have been classified
from use of the asset through the period of the lease and (3) as financing cash flows.
the Company has the right to direct the use of the asset.
The following is the summary of practical expedients
At the date of commencement of the lease, the Company elected on initial application:
recognizes right – of – use (“ROU”) asset and a corresponding lease
1. Applied a single discount rate to a portfolio of leases
liability for all lease arrangements in which it is a lessee, except for
of similar assets in similar economic environment with a
leases with a term of twelve months or less (short-term leases) and
similar end date.
low value leases. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense
2. Applied the exemption not to recognize right-of-use assets
on a straight-line basis over the term of the lease.
and liabilities for leases with less than 12 months of lease
term on the date of initial application.


3. Applied the exemption not to recognize right-of-use Note 4.3 (vii): Impairment of non-financial assets
assets and liabilities for Space Sharing Agreements with The carrying amounts of non-financial assets are reviewed at
Group Companies. each reporting date if there is any indication of impairment based
on internal/external factors. An asset is treated as impaired when
4. Excluded the initial direct costs from the measurement of
the carrying cost of the assets exceeds its recoverable value.
the right-of-use asset at the date of initial application.
The recoverable amount is the greater of the assets, net selling
5.
Applied the practical expedient to grandfather the price and value in use. In assessing value in use, the estimated
assessment of which transactions are leases. Accordingly future cash flows are discounted to their present value using a
for all contracts as on 01st April, 2019, Ind AS 116 is pre-tax discount rate that reflects current market assessments
applied only to contracts that were previously identified of the time value of money and risks specific to the asset. In
as leases under Ind AS 17. determining net selling price, recent market transactions are
taken into account, if available. If no such transactions can
The weighted average incremental borrowing rate applied be identified, an appropriate valuation model is used. After
to lease liabilities as at 01st April, 2022 is between the impairment, depreciation is provided on the revised carrying
range of 4.83% p.a. to 7.05% p.a. for a period varying from amount of the asset over its remaining useful life.
1 to 10 years.
An impairment loss, if any, is charged to the Statement of Profit
Critical accounting judgements and key sources of estimation and Loss in the year in which an asset is identified as impaired.
uncertainty A previously recognised impairment loss is reversed only if there
Critical judgements required in the application of Ind AS 116 has been a change in the assumptions used to determine the
may include, among others, the following: asset’s recoverable amount since the last impairment loss was
• Identifying whether a contract (or part of a contract) recognised. The reversal is limited so that the carrying amount
includes a lease; of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined,
• Determining whether it is reasonably certain that an
net of depreciation, had no impairment loss been recognised
extension or termination option will be exercised;
for the asset in prior years. Such reversal is recognised in the
• Classification of lease agreements (when the entity is statement of profit or loss.
a lessor);
• Determination of whether variable payments are in Note 4.3 (viii): Borrowing Cost
substance fixed; Borrowing costs that are directly attributable to the acquisition,
• Establishing whether there are multiple leases in construction, or production of a qualifying asset are capitalised
an arrangement; as a part of the cost of such asset till such time the asset is
• Determining the stand-alone selling prices of lease and ready for its intended use. A qualifying asset is an asset that
non-lease components. necessarily requires a substantial period of time to get ready
for its intended use or sale.
ey sources of estimation uncertainty in the application
K
of Ind AS 116 may include, among others, the following: All other borrowing costs are expensed in the period in which
• Estimation of the lease term; they occur at amortised cost using Effective Interest Rate (EIR).
• Determination of the appropriate rate to discount the

Borrowing costs consist of interest and other costs that an
lease payments;
entity incurs in connection with borrowing funds.
• Assessment of whether a right-of-use asset is impaired.
Note 4.3 (ix): Taxes
Note 4.3 (vi): Other income and expenses
Current tax
All Other income and expense are recognized in the period
Current income tax relating to items recognised directly in
they occur.
equity is recognised in equity and not in the statement of profit
or loss. Management periodically evaluates positions taken in

the tax returns with respect to situations in which applicable Note 4.4: Cash and Cash Equivalents
tax regulations are subject to interpretation and establishes
provisions where appropriate. Cash and cash equivalent in the balance sheet and for the
purpose of statement of cash flows comprise cash at bank
Deferred tax and cheques in hand and short-term deposits with an original
Deferred tax is provided using the liability method on temporary maturity of three months or less, which are subject to an
differences between the tax bases of assets and liabilities and insignificant risk of changes in value. They are held for the
their carrying amounts for financial reporting purposes at the purposes of meeting short-term cash commitments (rather
reporting date. than for investment or other purposes).
The carrying amount of deferred tax assets is reviewed at each Note 4.5: Property, Plant and Equipments
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow All items of property, plant and equipments are stated at
all or part of the deferred tax asset to be utilised. Unrecognised historical cost, net of accumulated depreciation and impairment
deferred tax assets are reassessed at each reporting date loss if any. The cost comprises the purchase price and any
and are recognised to the extent that it becomes probable attributable cost of bringing the asset to its working condition
that future taxable profit will allow the deferred tax asset to for its intended use.
be recovered.
An item of property, plant and equipment and any significant part
Deferred tax assets and liabilities are measured at the tax initially recognised is derecognised upon disposal or when no
rates that are expected to apply in the year when the asset is future economic benefits are expected from its use or disposal.
realised or the liability is settled, based on tax rates (and tax Any gain or loss arising on derecognition of the asset (calculated
laws) that have been enacted or substantively enacted at the as the difference between the net disposal proceeds and the
reporting date. carrying amount of the asset) is included in the Statement of
Profit and Loss when the asset is derecognised. The date of
Deferred tax relating to items recognised outside profit or loss disposal of an item of property, plant and equipment is the date
account is recognised either in OCI or in equity. Deferred tax the recipient obtains control of that item in accordance with the
items are recognised in correlation to the underlying transaction requirements for determining when a performance obligation
either in Other Comprehensive Income (OCI) or directly in equity. is satisfied in Ind AS 115.
Deferred tax assets and deferred tax liabilities are offset if a Depreciation methods, estimated useful lives and
legally enforceable right exists to set off current tax assets residual value
against current tax liabilities and the deferred taxes relate to the
Depreciation on the property, plant and equipments is provided
same taxable entity and the same taxation authority.
on straight line method using the rates arrived as per estimates
made by the management supported by technical assessment
which coincides with the useful lives of assets as specified in
Schedule II to the Companies Act, 2013, except for the assets
specified below. The Company has used the following useful lives
of the property, plant and equipments to provide depreciation.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
Useful Life as Prescribed by Schedule II Estimated Useful
Asset
of the Companies Act, 2013 Life by Company
Office Computers and Electronic Equipments (including 3 Years 4 Years
Plant & Machinery)
Vehicles 8 Years 5 Years
Furniture, Fixtures and Other Office Equipments 10 Years 7 Years
Office equipment 5 Years 4 Years
Software 6 Years 3 years (However it may vary based on
tenure of license)
Leasehold Improvements Over the primary period of the lease Lower of 3 Years or primary period


Useful life of assets different from prescribed in Schedule Note 4.7: Provisions and Contingencies
II has been estimated by management supported by
Provisions are recognised when the Company has a present
technical assessment.
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
Depreciation on assets acquired / sold during the year is
benefits will be required to settle the obligation and a reliable
recognised on a pro-rata basis to the Statement of Profit and
estimate can be made of the amount of the obligation.
Loss from/ till the date of acquisition or sale.
When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the
The residual values, useful lives and methods of depreciation of
reimbursement is recognised as a separate asset, but only when
property, plant and equipments are reviewed at each financial
the reimbursement is virtually certain. The expense relating to
year end and adjusted prospectively, if appropriate.
a provision is presented in the Statement of Profit and Loss net
of any reimbursement.
Note 4.6: Intangible Assets
Intangible assets acquired separately are measured on initial If the effect of the time value of money is material, provisions
recognition at cost. The cost of intangible assets acquired are discounted using a current pre-tax rate that reflects, when
in a business combination is their fair value at the date of appropriate, the risks specific to the liability. When discounting
acquisition. Following initial recognition, intangible assets is used, the increase in the provision due to the passage of time
are carried at cost less any accumulated amortisation and is recognised as a finance cost.
accumulated impairment losses if any. Intangible assets are
amortised on straight line basis over a period of 3 years. The Note 4.8: Contingent Liabilities
useful lives of intangible assets are assessed as finite.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
Intangible assets with finite lives are amortised over the useful
occurrence or non-occurrence of one or more uncertain
economic life and assessed for impairment whenever there
future events beyond the control of the Company or a present
is an indication that the intangible asset may be impaired.
obligation that is not recognized because it is not probable
The amortisation period and the amortisation method for an
that an outflow of resources will be required to settle the
intangible asset with a finite useful life are reviewed at least
obligation. A contingent liability also arises in extremely rare
at the end of each reporting period. Changes in the expected
cases where there is a liability that cannot be recognized
useful life or the expected pattern of consumption of future
because it cannot be measured reliably. The Company does
economic benefits embodied in the asset are considered to
not recognize a contingent liability but discloses its existence
modify the amortisation period or method, as appropriate,
in the financial statements.
and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is
Note 4.9: Earnings Per Share
recognised in the Statement of Profit and Loss unless such
expenditure forms part of carrying value of another asset. The Company reports basic and diluted earnings per
share in accordance with Ind AS 33 on Earnings per share.
Gains or losses from derecognition of intangible assets are Basic earnings per share (EPS) is calculated by dividing
measured as the difference between the net disposal proceeds the net profit for the year attributable to ordinar y
and the carrying amount of the asset and are recognised in the equity holders of Company by the weighted average
Statement of Profit and Loss when the asset is derecognised. number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit attributable
Intangible assets not ready for the intended use on the to ordinary equity holders of Company (after adjusting for
date of Balance Sheet are disclosed as Intangible assets interest on the convertible preference shares and interest on the
under development. convertible bond, in each case, inclusive of tax) by the weighted

average number of ordinary shares outstanding during the year The difference, if any, between the amounts recorded as share
plus the weighted average number of ordinary shares that would capital issued plus any additional consideration in the form of
be issued on the conversion of all the dilutive potential ordinary cash or other assets and the amount of share capital of the
shares into ordinary shares. transferor is transferred to capital reserve and is presented
separately from other capital reserves with disclosure of its
Note 4.10: Segment Reporting nature and purpose in the notes.
The Company is engaged primarily in the business of financing
and accordingly there are no separate reportable segments as NOTE 5: SIGNIFICANT ACCOUNTING JUDGEMENTS,
per Ind AS 108 dealing with Operating Segment. The Company ESTIMATES AND ASSUMPTIONS
has its operations within India and all revenue is generated
The preparation of financial statements in conformity with Ind
within India.
AS requires the management to make judgments, estimates
and assumptions that affect the reported amounts of revenues,
Note 4.11: Dividend expenses, assets and liabilities and the accompanying disclosure
The Company recognises a liability to make cash to equity and the disclosure of contingent liabilities, at the end of the
holders of the Company when the dividend is authorised and reporting period. Estimates and underlying assumptions are
the distribution is no longer at the discretion of the Company. As reviewed on an ongoing basis. Revisions to accounting estimates
per the corporate laws in India, an interim dividend is authorised are recognised in the period in which the estimates are revised
when it is approved by the Board of Directors and final dividend and future periods are affected. Although these estimates
is authorised when it is approved by the shareholders. A are based on the management’s best knowledge of current
corresponding amount is recognised directly in equity. events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material
Note 4.12: Business Combination under Common Control adjustment to the carrying amounts of assets or liabilities in
A common control business combination, involving entities or future periods.
businesses in which all of the combining entities or businesses
are ultimately controlled by the same party or parties both In particular, information about significant areas of estimation,
before and after the business combination and where the uncertainty and critical judgments in applying accounting
control is not transitory, is accounted for in accordance policies that have the most significant effect on the amounts
with Appendix C to Ind AS 103 'Business Combinations'. recognized in the financial statements is included in the
Business combinations involving entities or businesses under following notes:
common control are accounted for using the pooling of interest
method as follows: Note 5.1: Business Model Assessment
• The assets and liabilities of the combining entities are Classification and measurement of financial assets depends on
reflected at their carrying amounts. the results of the Solely Payments of Principal and Interest and
the business model test. The Company determines the business
• No adjustments are made to reflect fair values, or recognize
model at a level that reflects how groups of financial assets are
new assets or liabilities. Adjustments are made only to
managed together to achieve a particular business objective.
harmonize significant accounting policies.
This assessment includes judgement reflecting all relevant
• The financial information in the financial statements in evidence including how the performance of the assets is
respect of prior periods are restated as if the business evaluated and their performance measured, the risks that affect
combination had occurred from the beginning of the the performance of the assets and how these are managed and
preceding period in the financial statements, irrespective of how the managers of the assets are compensated.
the actual date of the combination.
• The identity of the reserves are preserved and appear in The Company monitors financial assets measured at amortised
the financial statements of the transferee in the same cost or fair value through other comprehensive income that are
form in which they appeared in the financial statements of derecognised prior to their maturity to understand the reason
the transferor. for their disposal and whether the reasons are consistent with


the objective of the business for which the asset was held. in the ordinar y course of the Company’s business.
Monitoring is part of the Company’s continuous assessment of When the Company can reliably measure the outflow of
whether the business model for which the remaining financial economic benefits in relation to a specific case and considers
assets are held continues to be appropriate and if it is not such outflows to be probable, the Company records a
appropriate whether there has been a change in business provision against the case. Where the probability of outflow
model and so a prospective change to the classification of is considered to be remote, or probable, but a reliable
those assets. estimate cannot be made, a contingent liability is disclosed.
Given the subjectivity and uncertainty of determining the
Note 5.2: Estimation of defined benefit plans (gratuity probability and amount of losses, the Company takes into
benefits) account a number of factors including legal advice, the
Refer Note 4.3 (ii) stage of the matter and historical evidence from similar
incidents. Significant judgement is required to conclude on
Note 5.3: Fair value measurement: these estimates.
When the fair values of financial assets and financial liabilities

Note 5.6: Effective Interest Rate (EIR) method
recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured The EIR is the rate that exactly discounts estimated future
using various valuation techniques. The inputs to these cash flows of the financial instrument through the expected
models are taken from observable markets where possible, but life of the financial instrument or, where appropriate, a shorter
where this is not feasible, a degree of judgment is required in period, to the net carrying amount. The future cash flows are
establishing fair values. Judgments include considerations of estimated taking into account all the contractual terms of the
inputs such as liquidity risk, credit risk and volatility. Changes instrument. The calculation of the EIR includes all fees paid or
in assumptions about these factors could affect the reported received between parties to the contract that are incremental
fair value of financial instruments. and directly attributable to the specific lending arrangement,
transaction costs, and all other premiums or discounts. For
Note 5.4: Impairment of loans portfolio financial assets measured at fair value through profit and loss
(“FVTPL”), transaction costs are recognised in the statement
The measurement of impairment losses across all categories
of profit and loss at initial recognition.
of financial assets requires judgement, in particular, the
estimation of the amount and timing of future cash flows and
Note 5.7: Recognition of deferred tax assets for carried
collateral values when determining impairment losses and
forward losses
the assessment of a significant increase in credit risk. These
estimates are driven by a number of factors, changes which can Refer Note 4.3 (ix)
result in different levels of allowances.
Note 5.8: Estimation of useful life of property, plant
It has been the Company’s policy to regularly review its models and equipments and intangible assets
in the context of actual loss experience and adjust when Refer note 4.5 and 4.6
necessary. The impairment loss on loans and advances is
disclosed in more detail in Note 10. Note 5.9: Accounting policy for Long Term Incentive Plan
The company pays Long Term Incentives to certain employees
Note 5.5: Provisions other than impairment on loan on fulfilment of prescribed criteria/conditions. The Company’s
portfolio and contingent liabilities liability towards Long Term Incentive is determined actuarially
The Company operates in a regulator y and legal based on certain assumptions regarding rate of Interest, staff
environment that, by nature, has a heightened element attrition and mortality as per Projected Unit Credit Method.
of litigation risk inherent to its operations. As a result, it is Expenses towards long term incentive are recognised in the
involved in various litigation, arbitration and proceedings Statement of Profit and Loss.

as at 31st March 2023
NOTE 6: CASH AND CASH EQUIVALENTS

(₹ in Lakhs)
As at As at
Particulars
Balances with bank in
- Current Accounts 38,763.43 59,571.14
Total 38,763.43 59,571.14
NOTE 7: BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS

(₹ in Lakhs)
As at As at
Particulars
Fixed Deposits (with original maturity more than 3 months) - 9,681.37
Total - 9,681.37
NOTE 8: DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives held for risk management purposes include hedges that meet the hedge accounting requirements. The table below
shows the fair values of derivative financial instruments recorded as assets or liabilities together with their notional amounts.
The notional amounts indicate the value of transactions outstanding at the year end and are not indicative of either the market
risk or credit risk.
(₹ in Lakhs)
As at 31st March, 2023 As at 31st March, 2022
Particulars Notional Fair Value - Fair Value - Notional Fair Value - Fair Value -
amounts Assets Liabilities amounts Assets Liabilities
Part I
(i) Currency derivatives:
Forward - - - 7.72 - 0.52
(ii) Interest rate derivatives:
Cross Currency Interest Rate swaps 93,148.62 - 715.02 1,46,367.54 - 7,770.64
INR Interest Rate swaps 1,00,000.00 83.64 654.22 25,000.00 19.02 28.08
Total 1,93,148.62 83.64 1,369.24 1,71,375.26 19.02 7,799.24
(₹ in Lakhs)
Particulars Notional Fair Value - Fair Value - Notional Fair Value - Fair Value -
amounts Assets Liabilities amounts Assets Liabilities
Part II
Included in above (Part I) are
derivatives held for hedging and risk
management purposes as follows:
(i) Fair Value hedging
-Interest Rate derivatives 90,000.00 50.96 654.22 25,000.00 19.02 28.08
(ii) Cash flow hedging
- Cross Currency Interest Rate derivatives 93,148.62 - 715.02 1,46,367.54 - 7,770.64
- Currency derivatives - - - 7.72 - 0.52
- Interest Rate derivatives 10,000.00 32.68 - - - -
Total 1,93,148.62 83.64 1,369.24 1,71,375.27 19.02 7,799.24


Note 8.1 : Hedging activities and derivatives

The Company is exposed to certain risks relating to its external commercial borrowings and Non Convertible Debentures. The
primary risks managed using derivative instruments are foreign currency risk and interest rate risk. The Company’s risk management
strategy and how it is applied to manage risk is explained in Note 52.
Note 8.2 : Derivatives designated as hedging instruments

Cash flow hedges
The Company is exposed to foreign currency risk arising from its External Commercial Borrowings amounting to ₹ 93,148.62 lakhs.
Interest on the borrowing is payable at a floating rate. The Company economically hedged the foreign currency risk arising from
the debt with a ‘receive floating pay fixed’ cross-currency interest rate swap (‘swap’). The notional amount of swap is disclosed
in the table below. The swap contract converts the cash outflows of the foreign currency borrowing as per table below to cash
outflows in INR with a notional amount of ₹ 93,148.62 lakhs at fixed interest rate.
(₹ in Lakhs)
Foreign Currency
Notional Amount
Denominated Borrowing Interest rate type Interest rate swap type
of swap (₹)
Name of Lender Amount
31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 31st March,
2023 2022 2023 2022 2023 2022 2023 2022
JPY Denominated (in JPY lakhs) 83,893.50 189,366.25 Floating rate Floating rate 51,983.62 124,089.54 Fixed rate Fixed rate
(Maturity range : Feb 2026 to interest interest interest interest
March, 2026)
USD Denominated (in USD 500.00 300.00 Floating rate Floating rate 41,165.00 22,278.00 Fixed rate Fixed rate
lakhs) (Maturity in Mar 2026) interest interest interest interest
There is an economic relationship between the hedged item and the hedging instrument as the terms of the cross currency swap
contract match that of the foreign currency borrowing (notional amount, interest payment dates, principal repayment date etc.).
The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the cross currency swap
are identical to the hedged risk components. To test the hedge effectiveness, the Company uses the hypothetical derivative
method and compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged
items attributable to the hedged risks. The hedge ineffectiveness can arise mainly if there is a change in the credit risk of the
Company or the counterparty.
The company has also taken overnight index swap deals to hedge it’s cashflows for underlying NCDs. The details are disclosed
in the table below:
(₹ in Lakhs)
Notional Amount of
Borrowing Amount Interest rate type Interest rate swap type
swap (₹)
Name of Lender
2023 2022 2023 2022 2023 2022 2023 2022
Interest rate swaps 10,000.00 - Floating rate - 10,000.00 - Fixed rate -
interest interest

The impact of the hedging instruments and hedge items on the balance sheet is, as follows
Hedging Instruments
(₹ in Lakhs)
Change in fair value used for
Carrying amount of hedging
Line item in the Financial measuring
Notional Amounts instruments Assets/
Statement ineffectiveness for the year
Particulars (Liabilities)
(net of tax)
2023 2022 2023 2022 2023 2022 2023 2022
Cross currency 93,148.62 1,46,367.54 (715.02) (7,770.64) Derivative financial 4,474.51 (3,518.78)
interest rate swaps instruments
Currency forward - 7.72 - (0.52) Derivative financial 0.39 0.55
instruments
Interest rate swaps 10,000.00 - 32.68 - Derivative financial 20.92 -
instruments
Total 1,03,148.62 1,46,375.26 (682.34) (7,771.16) 4,495.82 (3,518.23)
Hedge Items
(₹ in Lakhs)
Change in fair value used for measuring
Cash flow hedge reserve as at
Particulars ineffectiveness for the year (net of tax)
31st March, 2023 31st March, 2022 31st March, 2023 31st March, 2022
Foreign currency denominated floating rate borrowing (4,150.88) 5,447.99 (246.16) (570.18)
Debt securities (NCDs) - - 20.92 -
Total (4,150.88) 5,447.99 (225.24) (570.18)
The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:
(₹ in Lakhs)
Total hedging gain / (loss) Hedge ineffectiveness recognised in
recognised in OCI (net of tax) statement of profit and loss (net of tax)
Particulars
Year ended Year ended Year ended Year ended
31st March, 2023 31st March, 2022 31st March, 2023 31st March, 2022
Debt securities (NCDs) - - 3.53 -
Foreign currency denominated floating rate borrowing 344.94 1,929.76 - -
Total 344.94 1,929.76 3.53 -
Movements in Cash Flow Hedging Reserve

(₹ in Lakhs)
As at Add/Less: As at As at Add/Less: As at
Add/Less: Add/Less:
Particulars 01st April, Changes in 31st March, 01st April, Changes in 31st March,
Deferred Tax Deferred Tax
2022 fair value 2023 2021 fair value 2022
Cash flow (570.18) 460.95 (116.01) (225.24) (2,499.94) 2,578.79 (649.03) (570.18)
Hedging
Reserve
Total (570.18) 460.95 (116.01) (225.24) (2,499.94) 2,578.79 (649.03) (570.18)


Fair Value Hedge

Fair value hedges hedge the exposure to changes in the fair value of a recognised asset or liability, or an identified portion of such
an asset, liability, that is attributable to a particular risk and could affect profit or loss. For designated and qualifying fair value
hedges, the cumulative change in the fair value of a hedging derivative is recognised in the statement of profit and loss under
Net gain on fair value changes. Meanwhile, the cumulative change in the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the hedged item in the balance sheet and is also recognised in the statement
of profit and loss under Net gain on fair value changes. The Company classifies a fair value hedge relationship when the hedged
item (or group of items) is a distinctively identifiable asset or liability hedged by one or a few hedging instruments.
The impact of the hedging instruments and hedged items on the balance sheet is as follows
Hedging Instruments
(₹ in Lakhs)
Carrying amount of hedging Change in fair value used for
Line item in the
Notional Amounts instruments Assets/ measuring ineffectiveness
Balance Sheet
Particulars (Liabilities) for the year
2023 2022 2023 2022 2023 2022 2023 2022
Interest rate 90,000.00 25,000.00 (603.26) (9.06) Derivative financial (594.20) (9.06)
swaps instruments
Hedge Items
(₹ in Lakhs)
Change in fair value used for
Accumulated fair value Line item in the
Notional Amounts measuring ineffectiveness
adjustment - Liability Balance Sheet
Particulars for the year
2023 2022 2023 2022 2023 2022 2023 2022
Debt securities 90,000.00 25,000.00 (575.17) (3.44) Derivative financial 578.61 (3.44)
(NCDs) instruments
The effect of the fair value hedge in the statement of profit or loss is, as follows:
(₹ in Lakhs)
Hedge ineffectiveness recognised in Line in the statement of profit and loss that
Particulars statement of profit and loss includes hedge ineffectiveness
Interest rate swaps (15.59) (12.50) Net gain on fair value changes
Note 8.3 : The following table shows the maturity profile of hedging derivatives based on their notional amounts.
(₹ in Lakhs)
Particulars 0 to 12 0 to 12
1 to 5 years Over 5 years Total 1 to 5 years Over 5 years Total
months months
(i) Cross Currency - 93,148.62 - 93,148.62 1,46,367.54 - - 1,46,367.54
Interest Rate
swaps
(ii) Currency - - - - 7.72 - - 7.72
forward
(iii) Interest Rate 40,000.00 60,000.00 - 1,00,000.00 - 25,000.00 - 25,000.00
swaps
Total 40,000.00 153,148.62 - 1,93,148.62 1,46,375.27 25,000.00 - 1,71,375.26

NOTE 9: TRADE RECEIVABLES
132
As at 31st March, 2023
(₹ in Lakhs)
Outstanding for following periods from date of transaction
Total Loss
Particulars Less than 6 months More than Total
Unbilled 1-2 Years 2-3 years Exposure Allowance
6 months -1 year 3 years
Unsecured:
(i) Undisputed Trade receivables – considered good 866.92 3,153.50 - - - - 4,020.42 (34.57) 3,985.84
(ii) Undisputed Trade Receivables – which have significant - 89.53 - - - - 89.53 (44.77) 44.77
increase in credit risk
(iii) Undisputed Trade Receivables – credit impaired - 88.68 5.10 0.58 - - 94.36 (94.36) -
(iv) Disputed Trade Receivables–considered good - - - - - - - - -

(v) Disputed Trade Receivables – which have significant - - - - - - - - -
(vi) Disputed Trade Receivables – credit impaired - - - - - - - - -
Total 866.92 3,331.71 5.10 0.58 - - 4,204.31 (173.70) 4,030.61

(₹ in Lakhs)
Total Loss
Particulars Less than 6 months More than Total
Unbilled 1-2 Years 2-3 years Exposure Allowance
6 months -1 year 3 years
Unsecured:
(i) Undisputed Trade receivables – considered good 905.23 376.80 - - - - 1,282.03 (38.08) 1,243.96
(ii) Undisputed Trade Receivables – which have significant - - - - - - - - -
(iii) Undisputed Trade Receivables – credit impaired - 24.32 26.83 1.60 28.39 12.46 93.59 (93.59) -
(iv) Disputed Trade Receivables–considered good - - - - - - - - -
(v) Disputed Trade Receivables – which have significant - - - - - - - - -
(vi) Disputed Trade Receivables – credit impaired - - - - - - - - -
Total 905.23 401.12 26.83 1.60 28.39 12.46 1,375.62 (131.67) 1,243.96
Note:
1. No Trade or other receivables are due from directors or other officers of the company either severally or jointly with any other person, nor any
trade or other receivable are due from firms or private companies in which any director is a partner, a director or a member.
2. Date of transaction considered as due date of payment.
NOTE 10: LOANS
At fair value At fair value
Designated Designated
Particulars Amortised Through Amortised Through
Through Other at through Total Through Other at through Total
Cost profit Cost profit
Comprehensive profit Sub-total Comprehensive profit Sub-total
and loss and loss
Income and loss Income and loss
account account
account account
Loans 80,45,230.28 - - - - 80,45,230.28 54,68,207.51 - - - - 54,68,207.51

Other Advances 48.53 - - - - 48.53 21.04 - - - - 21.04
Total (A) - Gross 80,45,278.81 - - - - 80,45,278.81 54,68,228.55 - - - - 54,68,228.55
Less: Impairment loss 1,60,328.71 - - - - 1,60,328.71 1,07,482.53 - - - - 1,07,482.53
allowance
Total (A) - Net 78,84,950.10 - - - - 78,84,950.10 53,60,746.02 - - - - 53,60,746.02
i) Secured by tangible 47,15,065.63 - - - - 47,15,065.63 36,91,252.56 - - - - 36,91,252.56
assets
ii) Secured by intangible - - - - - - - - - - - -
assets
iii) Covered by bank and 3,23,304.18 - - - - 3,23,304.18 3,17,075.12 - - - - 3,17,075.12
government guarantee
iv) Secured by book debts, 82,937.72 - - - - 82,937.72 1,05,876.53 - - - - 1,05,876.53
inventories, fixed deposit
and other working capital
items
v) Unsecured 29,23,971.29 - - - - 29,23,971.29 13,54,024.34 - - - - 13,54,024.34
Total (B) - Gross 80,45,278.81 - - - - 80,45,278.81 54,68,228.55 - - - - 54,68,228.55
allowance
Total (B) - Net 78,84,950.10 - - - - 78,84,950.10 53,60,746.02 - - - - 53,60,746.02
Loans in India
i) Public Sector 41,907.39 - - - - 41,907.39 42,408.79 - - - - 42,408.79
ii) Others 80,03,371.42 - - - - 80,03,371.42 54,25,819.76 - - - - 54,25,819.76
Total - Gross 80,45,278.81 - - - - 80,45,278.81 54,68,228.55 - - - - 54,68,228.55
allowance
OVERVIEW
CORPORATE
Total - Net 78,84,950.10 - - - - 78,84,950.10 53,60,746.02 - - - - 53,60,746.02

Loans outside India - - - - - - - - - - - -
Less: Impairment loss - - - - - - - - - - - -
allowance
Total - Net - - - - - - - - - - - -
REPORTS
STATUTORY
Total (C) 78,84,950.10 - - - - 78,84,950.10 53,60,746.02 - - - - 53,60,746.02
Note :

1. There are no loans or advances, in the nature of loans, which are granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act 2013),
either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.
FINANCIAL
STATEMENTS
2. Impairment loss allowance includes non-fund based exposure’s impairment loss allowance of ₹ 29.95 lakhs (refer note: 10.1(d))
133
Note 10.1: Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures“

(a) Reconciliation of Gross carrying amount - Loans:
(₹ in Lakhs)
Loans
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Opening Balance of Gross 49,77,028.10 2,95,575.99 1,95,603.41 54,68,207.50 43,53,665.99 3,65,907.30 1,42,247.24 48,61,820.53
carrying amount
New assets originated or 47,29,349.26 35,498.03 31,548.81 47,96,396.10 24,27,295.24 22,914.07 16,115.47 24,66,324.78
purchased
Assets derecognised or (20,74,466.07) (58,620.04) (39,942.71) (21,73,028.82) (17,13,767.84) (59,110.65) (23,372.08) (17,96,250.57)
repaid (excluding write offs)
Transfers to Stage 1 1,21,954.37 (1,16,005.59) (5,948.78) - 1,16,820.00 (1,13,411.08) (3,408.92) -
Transfers to Stage 2 (1,08,095.41) 1,08,692.31 (596.90) - (1,44,932.18) 1,45,473.36 (541.18) -
Transfers to Stage 3 (47,493.20) (37,833.71) 85,326.91 - (44,517.45) (57,965.63) 1,02,483.08 -
Amounts written-off (22,492.38) (8,571.26) (15,280.87) (46,344.51) (17,535.66) (8,231.37) (37,920.20) (63,687.23)
Closing Balance of Gross 75,75,784.67 2,18,735.73 2,50,709.87 80,45,230.27 49,77,028.10 2,95,575.99 1,95,603.41 54,68,207.50
carrying amount
(b) Reconciliation of loss allowance provision - Loans:

(₹ in Lakhs)
ECL
Opening Balance of ECL 15,999.84 14,194.05 77,288.64 1,07,482.53 23,022.07 20,101.02 58,995.56 1,02,118.65
allowance
Increase in new / existing 48,250.78 6,218.26 55,349.37 1,09,818.41 17,698.11 11,602.97 54,867.40 84,168.48
assets originated or
purchased
Assets derecognised or (7,980.79) (922.75) (1,776.72) (10,680.26) (8,300.97) (4,213.60) (2,602.80) (15,117.37)
repaid (excluding write offs)
Transfers to Stage 1 4,134.24 (2,708.13) (1,426.11) - 1,797.50 (975.67) (821.82) -
Transfers to Stage 2 (254.79) 501.19 (246.41) - (417.36) 468.97 (51.61) -
Transfers to Stage 3 (187.78) (1,645.72) 1,833.50 - (263.85) (4,558.27) 4,822.11 -
Amounts written-off (22,492.84) (8,571.26) (15,227.87) (46,291.97) (17,535.66) (8,231.37) (37,920.20) (63,687.23)
Closing Balance of 37,468.66 7,065.64 1,15,794.41 1,60,328.71 15,999.84 14,194.05 77,288.64 1,07,482.53
ECL allowance
(c) Expected credit loss - Loans:

(₹ in Lakhs)
Particulars
Gross carrying amount 75,75,784.67 2,18,735.73 2,50,709.87 80,45,230.27 49,77,028.10 2,95,575.99 1,95,603.41 54,68,207.50
Less: Impairment loss 37,468.66 7,065.64 1,15,794.41 1,60,328.71 15,999.84 14,194.05 77,288.64 1,07,482.53
allowance
Net carrying amount 75,38,316.01 2,11,670.09 1,34,915.46 78,84,901.56 49,61,028.26 2,81,381.94 1,18,314.77 53,60,724.97


(d) An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to
non-fund based exposures is as follows:
(₹ in Lakhs)
Non-funded exposures Total Non-fund Exposures (not included in the tables above) ECL on Non-fund exposures (included in the tables above)
Opening Balance as on 11,748.84 200.00 - 11,948.84 36.47 6.87 - 43.34

31st March, 2022
Net Movement (3,636.99) (100.00) 200.00 (3,536.99) (6.58) (6.81) - (13.39)
Closing Balance as on 8,111.85 100.00 200.00 8,411.85 29.89 0.06 - 29.95
31st March, 2023
NOTE 11: INVESTMENTS

(₹ in Lakhs)
At Fair value
Amortised Through Other Designated

Particulars Through Sub-total Others Total
Cost Comprehensive at through
profit and
profit and
Income loss account
loss account
i) Investment in Govt Securities - - 2,47,031.28 - 2,47,031.28 - 2,47,031.28
ii) Investment in Equity instruments - 308.73 34.82 - 343.55 - 343.55
iii) Investment in Preference Shares - - 3,500.00 - 3,500.00 - 3,500.00
iv) Investment in Alternate Funds - - 24,643.33 - 24,643.33 - 24,643.33
v) Investment in Debentures 7,490.86 - 85,430.31 - 85,430.31 - 92,921.17
vi) Investment in Security Receipts 2,635.00 - - - - - 2,635.00
vii) Investment in Mutual Funds - - 520.91 - 520.91 - 520.91
Total Gross (A) 10,125.86 308.73 3,61,160.65 - 3,61,469.38 - 3,71,595.24
(i) Investments in India 10,125.86 308.73 3,61,160.65 - 3,61,469.38 - 3,71,595.24
(ii) Investments outside India - - - - - - -
Total (B) 10,125.86 308.73 3,61,160.65 - 3,61,469.38 - 3,71,595.24
Less : Impairment loss allowance (C) 1,325.62 - - - - - 1,325.62
Total - Net [D= (A)-(C)] 8,800.24 308.73 3,61,160.65 - 3,61,469.38 - 3,70,269.62

(₹ in Lakhs)
At Fair value
Amortised Through Designated

Particulars Through Sub-total Others Total
Cost Other at through
profit and
Comprehensive profit and
loss account
Income loss account
i) Investment in Govt Securities - - 47,137.87 - 47,137.87 - 47,137.87
ii) Equity instruments - 235.26 45.17 - 280.43 - 280.43
iii) Investment in Preference Shares - - 3,500.00 - 3,500.00 - 3,500.00
iv) Investment in Alternate Funds - - 8,225.19 - 8,225.19 - 8,225.19
v) Investment in Debentures - - 1,10,260.07 - 1,10,260.07 - 1,10,260.07
Total Gross (A) - 235.26 1,69,168.30 - 1,69,403.56 - 1,69,403.56
(i) Investments in India - 235.26 1,69,168.30 - 1,69,403.56 - 1,69,403.56
(ii) Investments outside India - - - - - - -
Total (B) - 235.26 1,69,168.30 - 1,69,403.56 - 1,69,403.56
Less : Impairment loss allowance (C) - - - - - - -
Total - Net [D= (A)-(C)] - 235.26 1,69,168.30 - 1,69,403.56 - 1,69,403.56
Note:
1. The Company received dividends of ₹ 284.97 lakhs (31st March, 2022: ₹ 285.31st lakhs) from its FVTPL securities, recorded
as dividend income.
Note 11.1: Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures“

(a) Reconciliation of Gross carrying amount - Investment:
(₹ in Lakhs)
Loans
Opening Balance of Gross carrying amount - - - - - - - -
New assets originated or purchased 7,490.86 - 2,635.00 10,125.86 - - - -
Assets derecognised or repaid (excluding write offs) - - - - - - - -
Transfers to Stage 1 - - - - - - - -
Amounts written-off - - - - - - - -
Closing Balance of Gross carrying amount 7,490.86 - 2,635.00 10,125.86 - - - -
(b) Reconciliation of loss allowance provision - Investment:

(₹ in Lakhs)
ECL
Opening Balance of ECL allowance - - - - - - - -
Increase in new / existing assets originated or 8.12 - 1,317.50 1,325.62 - - - -
purchased
Assets derecognised or repaid (excluding write offs) - - - - - - - -
Amounts written-off - - - - - - - -
Closing Balance of ECL allowance 8.12 - 1,317.50 1,325.62 - - - -
NOTE 12: OTHER FINANCIAL ASSETS

(₹ in Lakhs)
As at As at
Particulars
Security Deposits 3,774.41 2,772.59
(Carried at amortised cost, unless otherwise stated).
Other Receivables 2,469.50 2,589.22
Collateralized Borrowing and Lending Obligation 8,507.88 -
Total 14,751.79 5,361.81
NOTE 13: CURRENT TAX ASSETS (NET)

(₹ in Lakhs)
As at As at
Particulars
Advance Payment of Taxes (Net of provision for taxation ₹ 1,17,279.69 lakhs; 31st March, 2022 15,150.75 34,239.10
₹ 1,46,294.86 lakhs)
Total 15,150.75 34,239.10


NOTE 14: PROPERTY, PLANT AND EQUIPMENTS

(₹ in Lakhs)
Plant & Furniture & Office Leasehold
Particulars Building Vehicles Total
Equipments Fixtures Equipments Improvements
Gross book value:
At 1st April, 2021 20.92 1,124.36 148.69 1,508.54 466.76 690.23 3,959.50
Additions - 139.72 64.20 485.31 172.56 414.66 1,276.45
Disposals - 83.93 25.27 435.33 119.21 62.59 726.33
At at 31st March, 2022 20.92 1,180.15 187.62 1,558.52 520.11 1,042.30 4,509.62
Additions - 2,531.50 371.67 571.60 339.43 1,256.17 5,070.37
Disposals - 227.32 24.63 312.28 55.06 155.50 774.79
As at 31st March, 2023 20.92 3,484.33 534.66 1,817.84 804.48 2,142.97 8,805.20
Depreciation and impairment:
At 1st April, 2021 1.84 913.98 101.40 720.15 295.16 461.17 2,493.70
Depreciation charge for the year 0.46 136.03 46.49 297.05 92.57 127.12 699.72
Disposals - 83.93 25.27 278.34 116.68 60.95 565.17
At at 31st March, 2022 2.30 966.08 122.62 738.86 271.05 527.34 2,628.25
Depreciation charge for the year 0.46 600.69 199.92 305.66 155.13 452.60 1,714.46
Disposals - 226.66 24.25 207.76 55.06 153.94 667.67
As at 31st March, 2023 2.76 1,340.11 298.29 836.76 371.12 826.00 3,675.04
Net book value:
At at 31st March, 2022 18.62 214.07 65.00 819.66 249.06 514.96 1,881.37
As at 31st March, 2023 18.16 2,144.22 236.37 981.08 433.36 1,316.97 5,130.16
Note:
1. Redeemable Non Convertible Debentures are secured by charge on immovable property of the Company.
NOTE 15: RIGHT OF USE LEASE ASSETS

(₹ in Lakh)
Particulars Amount
Gross book value:
As at 01st April, 2021 13,912.45
Additions 7,065.31
Disposals 4,374.94
As at 31st March, 2022 16,602.82
Additions 10,501.68
Disposals 1,429.49
As at 31st March, 2023 25,675.01
Accumulated amortisation:
As at 01st April, 2021 4,507.14
Additions 2,583.08
Disposals 2,674.73
As at 31st March, 2022 4,415.49
Additions 2,959.69
Disposals 449.89
As at 31st March, 2023 6,925.29
Net book value:
As at 31st March, 2022 12,187.33
As at 31st March, 2023 18,749.72

NOTE 16: INTANGIBLE ASSETS UNDER DEVELOPMENT

(₹ in Lakh)
Particulars Amount
Gross book value:
As at 1st April, 2021 1,197.92
Additions 932.03
Disposals -
Transfers 1,040.90
As at 31st March, 2022 1,089.05
Additions 866.08
Disposals -
Transfers 1,065.06
As at 31st March, 2023 890.07
NOTE 16: INTANGIBLE ASSETS UNDER DEVELOPMENT AGING SCHEDULE

(₹ in Lakh)
Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 866.07 24.00 - - 890.07
Total 866.07 24.00 - - 890.07

(₹ in Lakh)
Amount in Intangible assets under development for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 932.03 157.02 - - 1,089.05
Total 932.03 157.02 - - 1,089.05
The Company does not have any project temporarily suspended whose completion is overdue or has exceeded its cost compared
to its original plan.
NOTE 17: OTHER INTANGIBLE ASSETS

(₹ in Lakh)
Particulars Amount
Gross book value:
At 1st April, 2021 15,506.54
Additions 3,420.36
Disposals 8.99
At 31st March, 2022 18,917.91
Additions 3,215.55
Disposals 40.88
As at 31st March, 2023 22,092.58


(₹ in Lakh)
Particulars Amount
Accumulated
At 1st April, 2021 8,356.80
Additions 3,552.59
Disposals -
At 31st March, 2022 11,909.39
Additions 3,939.13
Disposals -
As at 31st March, 2023 15,848.52
Net book value:
As at 31st March, 2022 7,008.52
As at 31st March, 2023 6,244.06
All intangible assets are other than internally generated.
NOTE 18: OTHER NON-FINANCIAL ASSETS

(₹ in Lakhs)
As at As at
Particulars
Prepaid expenses 2,030.44 4,240.10
Capital advances 1,336.25 396.71
Goods and Service Tax/Service Tax Receivable 3,177.07 1,734.46
Reimbursement Rights of Gratuity Fund 2,735.20 2,161.99
Others 3,336.36 -
Total 12,615.32 8,533.26
NOTE 19: TRADE PAYABLES

(₹ in Lakhs)
As at As at
Particulars
- Micro and small enterprises 288.81 696.87
- Other than Micro and small enterprises 69,467.65 23,524.76
Total 69,756.46 24,221.63
NOTE 19: TRADE PAYABLES

Trade Payables ageing schedule
(₹ in Lakhs)
Particulars More than Total
Unbilled dues Less than 1 year 1-2 years 2-3 years
3 years
(i) MSME - 288.70 0.09 0.02 - 288.81
(ii) Others 57,972.87 11,342.07 100.39 5.75 46.57 69,467.65
(iii) Disputed dues – MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 57,972.87 11,630.77 100.48 5.77 46.57 69,756.46


(₹ in Lakhs)
Particulars More than Total
Unbilled dues Less than 1 year 1-2 years 2-3 years
3 years
(i) MSME - 694.04 0.02 2.81 - 696.87
(ii) Others 18,827.81 4,586.24 22.47 57.73 30.51 23,524.76
(iii) Disputed dues – MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 18,827.81 5,280.27 22.49 60.54 30.51 24,221.63
Notes:
1. Date of transaction considered as due date of payment.
2. The disclosures regarding micro and small enterprises have been determined to the extent such parties have been identified
on the basis of information available with the Company and relied upon by the auditors.
NOTE 20: DEBT SECURITIES

(₹ in Lakhs)
At fair Value At fair Value
Particulars at fair value at fair value
At amortised through profit At amortised through profit
through profit Total through profit Total
cost and loss cost and loss
and loss and loss
Account account
account account
Redeemable non-convertible 15,86,126.94 - 89,406.83 16,75,533.77 12,28,682.37 - 24,954.31 12,53,636.68
debentures (Secured)
Redeemable non-convertible 16,100.36 - - 16,100.36 10,960.04 - - 10,960.04
debentures (Unsecured)
Commercial papers (Unsecured) 6,61,851.38 - - 6,61,851.38 3,13,528.98 - - 3,13,528.98
Total 22,64,078.68 - 89,406.83 23,53,485.51 15,53,171.39 - 24,954.31 15,78,125.70
Debt securities in India 22,64,078.68 - 89,406.83 23,53,485.51 15,53,171.39 - 24,954.31 15,78,125.70
Debt securities outside India - - - - - - - -
Total 22,64,078.68 - 89,406.83 23,53,485.51 15,53,171.39 - 24,954.31 15,78,125.70
Note:
1. Redeemable Non-Convertible Debentures are secured by way of mortgage on the immovable property and/or first pari-passu
charge on certain Financial Assets of the company.


Note 20(a): Redeemable non-convertible debentures (Secured) as at 31st March, 2023

Face
Date of
Series Details Value Per Amount Interest Rate (%) Date of Redemption Redeemable Terms
Allotment
Debenture
3 Month T-bill Linked, Secured, Rated, 10,00,000 07th May, 2021 26,634.74 5.11% p.a. 05th May, 2023 Redeemable at par at
Listed, Redeemable Non-Convertible (Floating Coupon end of 728 days from
Debentures Series:ABFL NCD ‘B1’ with Quarterly the date of allotment
FY 2021-22-MATURITY DATE – Reset, Payable
05/05/2023 Annually)
7.75% SECURED RATED LISTED 10,00,000 17th April, 22,015.76 7.75% p.a. 17th May, 2023 Redeemable at par
REDEEMABLE NON-CONVERTIBLE 2020 at end of 1125 days
DEBENTURE. SERIES ABFL NCD A1 from the date of
FY 2020-21. MATURITY DATE – allotment
17/05/2023
6.15% SECURED RATED LISTED 10,00,000 25th February, 77,927.81 6.15% p.a. 30th May, 2023 Redeemable at par at
REDEEMABLE NON-CONVERTIBLE 2021 end of 824 days from
DEBENTURE. SERIES ABFL NCD K2 the date of allotment
FY 2020-21. MATURITY DATE –
30/05/2023
5.15% SECURED RATED LISTED 10,00,000 17th June, 5,201.20 5.15% p.a. 16th June, 2023 Redeemable at par at
REDEEMABLE NON CONVERTIBLE 2021 end of 729 days from
DEBENTURES.SERIES C1.DATE OF the date of allotment
MATURITY 16/06/2023
7.57% SECURED RATED LISTED 10,00,000 28th April, 24,022.93 7.75% p.a. 28th June, 2023 Redeemable at par
28/06/2023
8.90% SECURED RATED LISTED 10,00,000 11th December, 15,325.87 8.90% p.a 27th July, 2023 Redeemable at par
REDEEMABLE NON CONVERTIBLE 2018 at end of 1689 days
DEBENTURES. SERIES ABFL NCD D2 from the date of
FY 2018-19. DATE OF MATURITY allotment
27/07/2023
8.90% SECURED RATED LISTED 10,00,000 27th July, 2018 1,585.44 8.90% p.a 27th July, 2023 Redeemable at par
REDEEMABLE NON CONVERTIBLE at end of 1826 days
DEBENTURES. SERIES ABFL NCD D2 from the date of
27/07/2023
9.15% SECURED RATED LISTED 10,00,000 7th January, 1,637.07 9.15% p.a. 21st December, 2023 Redeemable at par
DEBENTURE. SERIES ABFL NCD I from the date of
1 FY 2018-19. MATURITY DATE - allotment
21/12/2023
9.15% SECURED RATED LISTED 10,00,000 27th December, 8,287.67 9.15% p.a. 21st December, 2023 Redeemable at par
21/12/2023
9.15% SECURED RATED LISTED 10,00,000 21st December, 7,162.18 9.15% p.a. 21st December, 2023 Redeemable at par
21/12/2023

Face
Date of
Allotment
Debenture
5.90% SECURED RATED LISTED 10,00,000 22nd October, 33,842.87 5.90% p.a. 29th December, 2023 Redeemable at par
DEBENTURE. SERIES ABFL NCD G1 from the date of
29/12/2023
6.15% SECURED RATED LISTED 10,00,000 31st March, 41,995.12 6.15% p.a 28th March, 2024 Redeemable at par
DEBENTURE. SERIES ABFL NCD L3 from the date of
28/03/2024
PRINCIPAL PROTECTED (10 YEAR 10,00,000 04th May, 2022 4,753.52 Coupon linked 03rd May, 2024 Redeemable at par at
G-SEC PRICE LINKED) SECURED to performance end of 730 days from
RATED LISTED REDEEMABLE NON of Underlying / the date of allotment
CONVERTIBLE DEBENTURES. ABFL Reference Index
NCD SERIES PPMLD B1 FY 2022-23 Scenario If
– MAY 04, 2022. DATE OF MATURITY performance of
03/05/2024 underlying on final
fixing date Coupon
1. Greater than
50% of Digital
Level 6.82% p.a.
(6.00% XIRR
(Annualized yield))
2. Less than or
equal to 50% of
Digital Level 0 %
8.65% SECURED RATED LISTED 10,00,000 24th July, 2019 10,534.45 8.65% p.a. 12th June, 2024 Redeemable at par
DEBENTURE. SERIES ABFL NCD C1 from the date of
12/06/2024
8.65% SECURED RATED LISTED 10,00,000 28th June, 11,911.29 8.65% p.a. 12th June, 2024 Redeemable at par
12/06/2024
12/06/2024
12/06/2024
Zero Coupon SECURED RATED LISTED 10,00,000 17th June, 8,286.26 5.75% on XIRR 14th June, 2024 Redeemable at par
DEBENTURES.SERIES C2.DATE OF from the date of
MATURITY 14/06/2024 allotment


Face
Date of
Allotment
Debenture
PRINCIPAL PROTECTED (10 YEAR 10,00,000 28th June, 2,636.50 Coupon linked 27th June, 2024 Redeemable at par at
G-SEC PRICE LINKED) SECURED 2022 to performance end of 730 days from
NCD SERIES PPMLD C4 FY 2022-23 Scenario If
– JUNE 28, 2022. DATE OF MATURITY performance of
27/06/2024 underlying on final
fixing date Coupon
1. Greater than
50% of Digital
Level 7.34% p.a.
(7.33% XIRR
(Annualized yield))
2. Less than or
equal to 50% of
Digital Level 0 %
5.85% SECURED RATED LISTED 10,00,000 05th August, 25,939.78 5.85% p.a. 02nd August, 2024 Redeemable at par
DEBENTURES.SERIES E1.DATE OF from the date of
Zero Coupon SECURED RATED LISTED 10,00,000 24th August, 14,181.33 7.26% p.a. on XIRR 23rd August, 2024 Redeemable at par at
NON CONVERTIBLE DEBENTURES. 2022 basis end of 730 days from
ABFL NCD SERIES E2 FY2022-23.DATE the date of allotment
OF MATURITY 23/08/2024
Zero Coupon SECURED RATED LISTED 10,00,000 18th November, 5,139.34 7.92% p.a. on XIRR 28th November, 2024 Redeemable at par at
NON CONVERTIBLE DEBENTURES. 2022 basis end of 741 days from
ABFL NCD SERIES H1 FY2022-23. the date of allotment
DATE OF MATURITY 28/11/2024
3M TBILL LINKED SECURED 10,00,000 21st January, 50,745.22 5.22% p.a. 21st January, 2025 Redeemable at par
RATED LISTED NON CONVERTIBLE 2022 (Floating Coupon at end of 1096 days
DEBENTURES. ABFL NCD SERIES with Quarterly from the date of
‘J1’ FY2021-22.DATE OF MATURITY Reset, Payable allotment
21/01/2025 Annually)
PRINCIPAL PROTECTED (10 YEAR 10,00,000 26th August, 10,653.96 Coupon linked 09th April, 2025 Redeemable at par at
G-SEC PRICE LINKED) SECURED 2022 to performance end of 957 days from
NCD SERIES PPMLD E3 FY 2022-23 – Scenario If
DATE OF MATURITY 09/04/2025 performance of
underlying on final
fixing date Coupon
1. Greater than
50% of Digital
Level 7.2941%
p.a. (7.31% XIRR
(Annualized yield))
2. Less than or
equal to 50% of
Digital Level 0 %
7.69% SECURED RATED LISTED 10,00,000 28th April, 2,675.51 7.69% p.a. 25th April, 2025 Redeemable at par
25/04/2025

Face
Date of
Allotment
Debenture
7.60% SECURED RATED LISTED NON 10,00,000 01st July, 2022 26,478.35 7.60% p.a. 06th June, 2025 Redeemable at par
CONVERTIBLE DEBENTURES. FURTHER at end of 1071 days
ISSUANCE II ABFL NCD SERIES C1 from the date of
FY2022-23.DATE OF MATURITY allotment
06/06/2025
7.60% SECURED RATED LISTED NON 10,00,000 14th June, 26,478.35 7.60% p.a. 06th June, 2025 Redeemable at par
CONVERTIBLE DEBENTURES. FURTHER 2022 at end of 1088 days
ISSUANCE I ABFL NCD SERIES C1 from the date of
06/06/2025
7.60% SECURED RATED LISTED NON 10,00,000 8th June, 2022 11,650.48 7.60% p.a. 06th June, 2025 Redeemable at par
CONVERTIBLE DEBENTURES. ABFL at end of 1094 days
NCD SERIES C1 FY2022-23.DATE OF from the date of
8.90% SECURED RATED LISTED 10,00,000 09th February, 3,257.51 8.90% p.a. 26th June, 2025 Redeemable at par at
DEBENTURES. FURTHER ISSUANCE the date of allotment
(IV) SERIES ABFL NCD C4 FY 2018-19.
8.90% SECURED RATED LISTED 10,00,000 29th November, 2,714.59 8.90% p.a. 26th June, 2025 Redeemable at par at
DEBENTURES. FURTHER ISSUANCE the date of allotment
(III) SERIES ABFL NCD C4 FY 2018-19.
8.90% SECURED RATED LISTED 10,00,000 28th September, 2,714.59 8.90% p.a. 26th June, 2025 Redeemable at par
DEBENTURES. FURTHER ISSUANCE from the date of
(II) SERIES ABFL NCD C4 FY 2018-19. allotment
8.90% SECURED RATED LISTED 10,00,000 12th July, 2022 32,575.08 8.90% p.a. 26th June, 2025 Redeemable at par
DEBENTURES. FURTHER ISSUANCE from the date of
(I) SERIES ABFL NCD C4 FY 2018-19. allotment
8.90% SECURED RATED LISTED 10,00,000 26th June, 2018 5,537.76 8.90 % p.a. 26th June, 2025 Redeemable at par
DEBENTURES. SERIES ABFL NCD C4 from the date of
26/06/2025
Zero Coupon SECURED RATED LISTED 10,00,000 12th July, 2022 34,289.94 7.80% p.a. on XIRR 11th July, 2025 Redeemable at par
REDEEMABLE NON CONVERTIBLE basis at end of 1095 days
DEBENTURES.SERIES D1.DATE OF from the date of
6.40% SECURED RATED LISTED 10,00,000 21st January, 35,409.31 6.40% p.a. 22nd July, 2025 Redeemable at par
DEBENTURES. SERIES J2.DATE OF from the date of
7.50% SECURED RATED LISTED 10,00,000 19th September, 48,599.59 7.50% p.a. 18th August, 2025 Redeemable at par
NON CONVERTIBLE DEBENTURES. 2022 at end of 1064 days
Further Issuance (I) ABFL NCD Series from the date of
E1 FY 2022-23.DATE OF MATURITY allotment
18/08/2025
7.50% SECURED RATED LISTED NON 10,00,000 18th August, 41,806.10 7.50% p.a. 18th August, 2025 Redeemable at par
CONVERTIBLE DEBENTURES. ABFL 2022 at end of 1096 days
NCD SERIES E1 FY2022-23.DATE OF from the date of


Face
Date of
Allotment
Debenture
7.90% SECURED RATED LISTED NON 10,00,000 14th October, 52,799.61 7.90% p.a. 19th September, 2025 Redeemable at par
NCD SERIES G1 FY2022-23.DATE OF from the date of
8.77% SECURED REDEEMABLE NON 10,00,000 19th October, 1,556.82 8.77% p.a. 17th October, 2025 Redeemable at par
CONVERTIBLE DEBENTURES. SERIES 2015 at end of 3651 days
ABFL NCD Q1 FY 2015-16. DATE OF from the date of
8.71% SECURED REDEEMABLE NON 10,00,000 03rd November, 50,647.56 8.71% p.a. 50% on 01st Redeemable in
CONVERTIBLE DEBENTURES. SERIES 2015 November, 2024 & installments at par -
ABFL NCD S1 FY 2015-16. DATE OF 50% on 31st October, 50% at end of 3286
MATURITY 31/10/2025 2025 days
and 50% at end of
3650 days from the
date of allotment
6.25% SECURED RATED LISTED 10,00,000 23rd December, 7,619.92 6.25% p.a. 23rd December, 2025 Redeemable at par
DEBENTURE. SERIES ABFL NCD I1 from the date of
23/12/2025
7.93% SECURED RATED LISTED NON 10,00,000 29th November, 31,278.46 7.93% p.a. 15th January, 2026 Redeemable at par
NCD SERIES H4 FY2022-23.DATE OF from the date of
7.88% SECURED RATED LISTED 10,00,000 02nd February, 15,259.82 7.88% p.a. 12th February, 2026 Redeemable at par
Further Issuance (I)ABFL NCD SERIES from the date of
I3 FY2022-23.DATE OF MATURITY allotment
12/02/2026
7.88% SECURED RATED LISTED 10,00,000 02nd February, 15,432.77 7.88% p.a. 12th February, 2026 Redeemable at par
Further Issuance (I)ABFL NCD SERIES from the date of
I3 FY2022-23.DATE OF MATURITY allotment
12/02/2026
7.88% SECURED RATED LISTED NON 10,00,000 30th December, 40,692.86 7.88% p.a. 12th February, 2026 Redeemable at par
NCD SERIES I3 FY2022-23.DATE OF from the date of
8.85% SECURED REDEEMABLE NON 10,00,000 23rd February, 1,007.90 8.85% p.a. 23rd February, 2026 Redeemable at par
ABFL NCD W3 FY 2015-16. DATE OF from the date of
8.90% SECURED REDEEMABLE NON 10,00,000 09th March, 1,004.63 8.90% p.a. 06th March, 2026 Redeemable at par
ABFL NCD X1 FY 2015-16. DATE OF from the date of
7.95% SECURED RATED LISTED NON 10,00,000 18th November, 61,371.00 7.95% p.a. 18th March, 2026 Redeemable at par
8.90% SECURED REDEEMABLE NON 10,00,000 21st March, 500.92 8.90% p.a. 20th March, 2026 Redeemable at par
ABFL NCD Z3 FY 2015-16. DATE OF from the date of

Face
Date of
Allotment
Debenture
6.55% SECURED RATED LISTED 10,00,000 26th July, 2021 51,790.18 6.55% p.a. 24th July, 2026 Redeemable at par
DEBENTURES.SERIES D1.DATE OF from the date of
8.30% SECURED RATED LISTED NON 1,00,000 21st March, 21,036.47 8.30% p.a. 16th September, 2026 Redeemable at par
NCD SERIES L2 FY2022-23.DATE OF from the date of
6.45% SECURED RATED LISTED 10,00,000 04th October, 11,853.91 6.45% p.a. 01st October, 2026 Redeemable at par
DEBENTURES. SERIES G2.DATE OF from the date of
8% XIRR SECURED RATED LISTED 10,00,000 13th June, 781.44 8.00% p.a. on XIRR 11st June, 2027 Redeemable at par
DEBENTURES. SERIES ABFL NCD C1 from the date of
11/06/2027
7.95% SECURED RATED LISTED NON 10,00,000 05th December, 5,121.60 7.95% p.a. 03rd December, 2027 Redeemable at par
7.92% SECURED RATED LISTED NON 10,00,000 27th December, 41,803.88 7.92% p.a. 27th December, 2027 Redeemable at par
8.12% SECURED RATED LISTED NON 1,00,000 21st March, 7,568.58 8.12% p.a. 06th March, 2028 Redeemable at par
CONVERTIBLE DEBENTURES. FURTHER 2023 at end of 1812 days
ISSUANCE (I)ABFL NCD SERIES L1 from the date of
06/03/2028
8.12% SECURED RATED LISTED NON 1,00,000 06th March, 52,428.72 8.12% p.a. 06th March, 2028 Redeemable at par
NCD SERIES L1 FY2022-23.DATE OF from the date of
9.15% SECURED RATED LISTED 10,00,000 08th September, 2,602.13 9.15% p.a. 21st December, 2028 Redeemable at par
DEBENTURE. FURTHER ISSUANCE IV from the date of
SERIES ABFL NCD I2 FY 2018-19. allotment
MATURITY DATE - 21/12/2028
9.15% SECURED RATED LISTED 10,00,000 29th March, 15,612.81 9.15% p.a. 21st December, 2028 Redeemable at par
21/12/2028
9.15% SECURED RATED LISTED 10,00,000 12th February, 4,007.29 9.15% p.a. 21st December, 2028 Redeemable at par
21/12/2028
9.15% SECURED RATED LISTED 10,00,000 27th December, 7,181.89 9.15% p.a. 21st December, 2028 Redeemable at par
21/12/2028


Face
Date of
Allotment
Debenture
9.15% SECURED RATED LISTED 10,00,000 21st December, 1,561.28 9.15% p.a. 21st December, 2028 Redeemable at par
21/12/2028
9% SECURED RATED LISTED 10,00,000 20th May, 2019 161,572.86 9.00% p.a. 50% - 19th May, 2028 Redeemable in
REDEEMABLE NON CONVERTIBLE 50% - 18th May, 2029 installments at par -
DEBENTURE. SERIES ABFL NCD B2 50% at end of 3287
FY 2019-20. MATURITY DATE – days
18/05/2029 and 50% at end of
3651 days from the
date of allotment
8.70% SECURED RATED LISTED 10,00,000 04th July, 2019 3,103.99 8.70% p.a. 04th July, 2029 Redeemable at par
DEBENTURE. SERIES ABFL NCD D1 FY from the date of
2019-2020. DATE OF MATURITY allotment
04th July, 2029
8.15% SECURED RATED LISTED 10,00,000 20th January, 101,514.96 8.15% p.a. 25% at the end of Redeemable in
REDEEMABLE NON CONVERTIBLE 2020 7th Year installments at par -
DEBENTURE. SERIES ABFL NCD J1 (Wednesday, 20th 25% at end of 2557
FY 2019-20. MATURITY DATE – January, 2027), days,
18/01/2030 25% at the end of 25% at end of 2922
8th Year days
(Thursday, 20th 25% at end of 3287
January, 2028), days
25% at the end of 25% at end of 3651
9th Year days from the date of
(Friday, 19th January, allotment
2029) &
25% at the end of
10th Year
(Friday, 18th January,
2030)
7.24% SECURED RATED LISTED 10,00,000 18th February, 2,517.25 7.24% p.a. 18th February, 2031 Redeemable at par
DEBENTURE. SERIES ABFL NCD K1 from the date of
18/02/2031
7.26% SECURED RATED LISTED 10,00,000 31st May, 2021 79,497.64 7.26% p.a. 25% at the end of Redeemable in
REDEEMABLE NON CONVERTIBLE 7th Year installments at par -
DEBENTURES.SERIES B2.DATE OF (Wednesday, 31st May, 25% at end of 2557
MATURITY 30/05/2031 2028) days,
8th Year days
(Thursday, 31st May, 25% at end of 3287
2029) days
9th Year days from the date of
(Friday, 31st May, allotment
2030)
25% at the end of
10th Year
(Friday, 30th May,
2031)
7.10% SECURED RATED LISTED 10,00,000 04th October, 5,163.59 7.10% p.a. 03rd October, 2031 Redeemable at par
DEBENTURES. SERIES G1.DATE OF from the date of

Face
Date of
Allotment
Debenture
8.12% SECURED RATED LISTED NON 10,00,000 15th March, 10,317.40 8.12% p.a. 18th November, 2032 Redeemable at par
CONVERTIBLE DEBENTURES. Further 2023 at end of 3536 days
Issuance (III) ABFL NCD Series H3 from the date of
18/11/2032
8.12% SECURED RATED LISTED NON 10,00,000 09th February, 23,214.16 8.12% p.a. 18th November, 2032 Redeemable at par
CONVERTIBLE DEBENTURES. Further 2023 at end of 3570 days
Issuance (II) ABFL NCD Series H3 from the date of
18/11/2032
8.12% SECURED RATED LISTED 10,00,000 21st December, 41,269.62 8.12% p.a. 18th November, 2032 Redeemable at par
Further Issuance (I) ABFL NCD Series from the date of
H3 FY 2022-23. DATE OF MATURITY allotment
18/11/2032
8.12% SECURED RATED LISTED NON 10,00,000 18th November, 20,634.81 8.12% p.a. 18th November, 2032 Redeemable at par
Total 1,675,533.77
Note 20(b): Redeemable non-convertible debentures (Unsecured) as on 31st March, 2023

Face
Date of
Allotment
Debenture
7.57% UNSECURED RATED LISTED 4,40,000.00 06-Aug-20 16,100.36 7.57% 03-Aug-35 Redeemable at par
PARTLY PAID DEBENTURES. SERIES from the date of
ABFL NCD ‘EP1’ FY 2020-21. DATE OF allotment
MATURITY 03/08/2035
Note 20(a): Redeemable non-convertible debentures (Secured) as at 31st March, 2022

Face
Date of Interest
Series Details Value Per Amount Date of Redemption Redeemable Terms
Allotment Rate (%)
Debenture
7.10% SECURED RATED LISTED 10,00,000 04th October, 5,163.31 7.10% p.a. 03rd October, 2031 Redeemable at par at end of
REDEEMABLE NON CONVERTIBLE 2021 3651 days from the date of
DEBENTURES. SERIES G1.DATE OF allotment
MATURITY 03/10/2031
7.26% SECURED RATED LISTED 10,00,000 31st May, 2021 79,501.44 7.26% p.a. 25% at the end of 7th Year Redeemable in instalment's
REDEEMABLE NON CONVERTIBLE (31st May, 2028) at par -
DEBENTURES.SERIES B2.DATE OF 25% at end of 2557 days,
MATURITY 30/05/2031 25% at the end of 8th Year
(31st May, 2029) 25% at end of 2922 days
25% at the end of 9th Year 25% at end of 3287 days
(31st May, 2030) 25% at end of 3652 days

from the date of allotment
25% at the end of 10th
Year
(30th May, 2031)
7.24% SECURED RATED LISTED 10,00,000 18th February, 2,517.10 7.24% p.a. 18th February, 2031 Redeemable at par at end of
REDEEMABLE NON-CONVERTIBLE 2021 3652 days from the date of
DEBENTURE. SERIES ABFL NCD K1 allotment
18/02/2031


Face
Date of Interest
Allotment Rate (%)
Debenture
8.15% SECURED RATED LISTED 10,00,000 20th January, 101,521.87 8.15% p.a. 1} 25% at the end of 7th Redeemable in instalment's
REDEEMABLE NON CONVERTIBLE 2020 Year at par -
DEBENTURE. SERIES ABFL NCD J1 (Wednesday, 20th January, 25% at end of 2557 days,
FY 2019-20. MATURITY DATE – 2027),
18/01/2030 25% at end of 2922 days
2} 25% at the end of 8th 25% at end of 3287 days
Year
25% at end of 3651 days
(Thursday, 20th January, from the date of allotment
2028),
3} 25% at the end of 9th
Year
(Friday, 19th January,
2029) &
4} 25% at the end of
10th Year
(Friday, 18th January, 2030)
8.70% SECURED RATED LISTED 10,00,000 04th July, 2019 3,104.01 8.70% p.a. 04th July, 2029 Redeemable at par at end of
REDEEMABLE NON CONVERTIBLE 3653 days from the date of
DEBENTURE. SERIES ABFL NCD D1 FY allotment
2019-2020. DATE OF MATURITY
04th July, 2029
9% SECURED RATED LISTED 10,00,000 20th May, 2019 161,585.61 9.00% p.a. 50% - 19th May, 2028 Redeemable in instalment's
REDEEMABLE NON CONVERTIBLE 50% - 18th May, 2029 at par - 50% at end of 3287
DEBENTURE. SERIES ABFL NCD B2 days
FY 2019-20. MATURITY DATE – and 50% at end of 3651
18/05/2029 days from the date of
allotment
9.15% SECURED RATED LISTED 10,00,000 21st December, 1,557.37 9.15% p.a. 21st December, 2028 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD I allotment
2 FY 2018-19. MATURITY DATE -
21/12/2028
9.15% SECURED RATED LISTED 10,00,000 27th December, 7,163.92 9.15% p.a. 21st December, 2028 Redeemable at par at end of
21/12/2028
9.15% SECURED RATED LISTED 10,00,000 12th February, 3,997.26 9.15% p.a. 21st December, 2028 Redeemable at par at end of
21/12/2028
9.15% SECURED RATED LISTED 10,00,000 29th March, 15,573.75 9.15% p.a. 21st December, 2028 Redeemable at par at end of
21/12/2028

Face
Date of Interest
Allotment Rate (%)
Debenture
8% XIRR SECURED RATED LISTED 10,00,000 13th June, 723.19 8.00% p.a. 11th June, Redeemable at par at end of
REDEEMABLE NON CONVERTIBLE 2017 2027 3650 days from the date of
DEBENTURES. SERIES ABFL NCD C1 allotment
FY 2017-18. DATE OF MATURITY
11/06/2027
6.45% SECURED RATED LISTED 10,00,000 04th October, 11,854.01 6.45% p.a. 01st October, Redeemable at par at end of
DEBENTURES. SERIES G2.DATE OF allotment
MATURITY 01/10/2026
6.55% SECURED RATED LISTED 10,00,000 26th July, 2021 52,152.76 6.55% p.a. 24th July, Redeemable at par at end of
DEBENTURES.SERIES D1.DATE OF allotment
MATURITY 24/07/2026
8.90% SECURED REDEEMABLE NON 10,00,000 21st March, 500.89 8.90% p.a. 20th March, Redeemable at par at end of
CONVERTIBLE DEBENTURES. SERIES 2016 2026 3651 days from the date of
ABFL NCD Z3 FY 2015-16. DATE OF allotment
MATURITY 20/03/2026
8.90% SECURED REDEEMABLE NON 10,00,000 09th March, 1,004.57 8.90% p.a. 06th March, Redeemable at par at end of
ABFL NCD X1 FY 2015-16. DATE OF allotment
MATURITY 06/03/2026
8.85% SECURED REDEEMABLE NON 10,00,000 23rd February, 1,007.84 8.85% p.a. 23rd February, Redeemable at par at end of
ABFL NCD W3 FY 2015-16. DATE OF allotment
MATURITY 23/02/2026
6.25% SECURED RATED LISTED 10,00,000 23rd December, 7,619.44 6.25% p.a. 23rd December, 2025 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD I1 allotment
23/12/2025
8.71% SECURED REDEEMABLE NON 10,00,000 3rd November, 50,645.32 8.71% p.a. 50% on 01st November, Redeemable in instalment's
CONVERTIBLE DEBENTURES. SERIES 2015 2024 & at par - 50% at end of 3285
ABFL NCD S1 FY 2015-16. DATE OF 50% on days
MATURITY 31/10/2025 31st October, and 50% at end of 3650
2025 days from the date of
allotment
8.77% SECURED REDEEMABLE NON 10,00,000 19th October, 1,556.76 8.77% p.a. 17th October, Redeemable at par at end of
ABFL NCD Q1 FY 2015-16. DATE OF allotment
MATURITY 17/10/2025
6.40% SECURED RATED LISTED 10,00,000 21st January, 35,403.86 6.40% p.a. 22nd July, Redeemable at par at end of
DEBENTURES. SERIES J2.DATE OF allotment
MATURITY 22/07/2025
8.90% SECURED RATED LISTED 10,00,000 26th June, 5,442.04 8.90 % p.a. 26th June, Redeemable at par at end of
26/06/2025
7.69% SECURED RATED LISTED 10,00,000 28th April, 2020 2,675.13 7.69% p.a. 25th April, 2025 Redeemable at par at end of
REDEEMABLE NON-CONVERTIBLE 1823 days from the date of
DEBENTURE. SERIES ABFL NCD A3 allotment
25/04/2025


Face
Date of Interest
Allotment Rate (%)
Debenture
3M TBILL LINKED SECURED 10,00,000 21st January, 50,464.85 5.22% p.a. 21st January, 2025 Redeemable at par at end of
RATED LISTED NON CONVERTIBLE 2022 (Floating 1096 days from the date of
DEBENTURES. ABFL NCD SERIES Coupon with allotment
‘J1’ FY2021-22.DATE OF MATURITY Quarterly
21/01/2025 Reset, Payable
Annually)
5.85% SECURED RATED LISTED 10,00,000 05th August, 25,939.67 5.85% p.a. 02nd August, 2024 Redeemable at par at end of
DEBENTURES.SERIES E1.DATE OF allotment
MATURITY 02/08/2024
Zero Coupon SECURED RATED LISTED 10,00,000 17th June, 7,834.59 Zero Coupon 14th June, 2024 Redeemable at par at end of
DEBENTURES.SERIES C2.DATE OF allotment
MATURITY 14/06/2024
8.65% SECURED RATED LISTED 10,00,000 12th June, 18,484.74 8.65% p.a. 12th June, 2024 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD C1 allotment
12/06/2024
12/06/2024
12/06/2024
8.65% SECURED RATED LISTED 10,00,000 24th July, 2019 10,545.92 8.65% p.a. 12th June, 2024 Redeemable at par at end of
12/06/2024
6.15% SECURED RATED LISTED 10,00,000 March, 31, 41,990.04 6.15% p.a. 28th March, 2024 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD L3 allotment
28/03/2024
5.90% SECURED RATED LISTED 10,00,000 22nd October, 33,835.95 5.90% p.a. 29th December, 2023 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD G1 allotment
29/12/2023
9.15% SECURED RATED LISTED 10,00,000 21st December, 7,171.61 9.15% p.a. 21st December, 2023 Redeemable at par at end of
21/12/2023
9.15% SECURED RATED LISTED 10,00,000 27th December, 8,298.58 9.15% p.a. 21st December, 2023 Redeemable at par at end of
21/12/2023

Face
Date of Interest
Allotment Rate (%)
Debenture
9.15% SECURED RATED LISTED 10,00,000 7th January, 1,639.23 9.15% p.a. 21st December, 2023 Redeemable at par at end of
21/12/2023
8.90% SECURED RATED LISTED 10,00,000 27th July, 2018 1,580.49 8.90% p.a. 27th July, 2023 Redeemable at par at end of
DEBENTURES. SERIES ABFL NCD D2 allotment
27/07/2023
8.90% SECURED RATED LISTED 10,00,000 11th December, 15,278.09 8.90% p.a. 27th July, 2023 Redeemable at par at end of
DEBENTURES. SERIES ABFL NCD D2 allotment
27/07/2023
7.57% SECURED RATED LISTED 10,00,000 28th April, 2020 24,073.08 7.75% p.a. 28th June, 2023 Redeemable at par at end of
28/06/2023
DEBENTURES.SERIES C1.DATE OF allotment
MATURITY 16/06/2023
6.15% SECURED RATED LISTED 10,00,000 25th February, 77,932.47 6.15% p.a. 30th May, 2023 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD K2 allotment
30/05/2023
7.75% SECURED RATED LISTED 10,00,000 17th April, 2020 22,009.78 7.75% p.a. 17th May, 2023 Redeemable at par at end of
17/05/2023
3Month T-bill Linked, Secured, Rated, 10,00,000 07th May, 2021 26,170.69 5.11% p.a. 05th May, 2023 Redeemable at par at end of
Listed, Redeemable Non-Convertible (Floating 728 days from the date of
Debentures Series:ABFL NCD ‘B1’ Coupon with allotment
FY 2021-22-MATURITY DATE – Quarterly
Annually)
3Month T-bill Linked, Secured, Rated, 10,00,000 19th March, 25,050.01 5.75% p.a. 17th March, 2023 Redeemable at par at end of
Listed, Redeemable Non-Convertible 2021 (Floating 728 days from the date of
Debentures Series:ABFL NCD ‘L2’ Coupon with allotment
Annually)
3Month T-bill Linked, Secured, Rated, 10,00,000 16th March, 50,124.84 5.75% p.a. 16th March, 2023 Redeemable at par at end of
Listed, Redeemable Non-Convertible 2021 (Floating 730 days from the date of
Debentures Series:ABFL NCD ‘L1’ Coupon with allotment
Annually)
7.75% SECURED RATED LISTED 10,00,000 04th December, 15,361.33 7.75% p.a. 09th December, 2022 Redeemable at par at end of
DEBENTURE. SERIES ABFL NCD I1. allotment


Face
Date of Interest
Allotment Rate (%)
Debenture
8.77% SECURED REDEEMABLE NON 10,00,000 12th October, 2,183.72 8.77% p.a. 12th October, 2022 Redeemable at par at end of
CONVERTIBLE DEBENTURES. SERIES 2015 2557 days from the date of
ABFL NCD O1 FY 2015-16. DATE OF allotment
MATURITY 12/10/2022
8.77% SECURED REDEEMABLE NON 10,00,000 07th October, 6,246.41 8.77% p.a. 07th October, 2022 Redeemable at par at end of
ABFL NCD N1 FY 2015-16. DATE OF allotment
MATURITY 07/10/2022
8.85% SECURED REDEEMABLE NON 10,00,000 10th September, 2,096.02 8.85% p.a. 09th September, 2022 Redeemable at par at end of
ABFL NCD L1 FY 2015-16. DATE OF allotment
MATURITY 09/09/2022
7.60% SECURED RATED LISTED 10,00,000 07th September, 33,865.63 7.60% p.a. 07th September, 2022 Redeemable at par at end of
DEBENTURES. SERIES ABFL NCD allotment
F1 FY 2017-18. DTE OF MATURITY
07/09/2022
7.60% SECURED RATED LISTED 10,00,000 18th August, 10,462.09 7.60% p.a. 18th August, 2022 Redeemable at par at end of
E3 FY 2017-18. DTE OF MATURITY
18/08/2022
7.70% SECURED RATED LISTED 10,00,000 14th August, 5,237.92 7.70% p.a. 12th August, 2022 Redeemable at par at end of
12/08/2022
7.60% SECURED RATED LISTED 10,00,000 23rd August, 15,680.69 7.60% p.a. 19th July, 2022 Redeemable at par at end of
19/07/2022
29/06/2022
17/06/2022
10 YEAR G-SEC LINKED PRINCIPAL 10,00,000 08th May, 2019 4,774.73 1 Greater 25th May, 2022 Redeemable at par at end of
PROTECTED SECURED RATED LISTED than 50% of 1113 days from the date of
REDEEMABLE NON CONVERTIBLE Digital Level allotment
DEBENTURE. SERIES PPMLD B1 FY 8.3026% p.a.
2019-20. (8.30% XIRR
MATURITY DATE - 25/05/2022 (Annualized
yield))
2 Less than or
equal to 50%
of Digital Level
0%

Face
Date of Interest
Allotment Rate (%)
Debenture
6.78% SECURED RATED LISTED 10,00,000 26th June, 26,288.84 6.78% p.a. 26th April, 2022 Redeemable at par at end of
26/04/2022
ZERO COUPON SECURED RATED 10,00,000 26th October, 21,707.87 Zero Coupon 08th April, 2022 Redeemable at par at end of
LISTED REDEEMABLE NON 2018 1260 days from the date of
CONVERTIBLE DEBENTURES. SERIES allotment
ABFL NCD G5 FY 2018-19. DATE OF
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 06th November, 2,443.84 Zero Coupon 08th April, 2022 Redeemable at par at end of
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 11th December, 16,246.77 Zero Coupon 08th April, 2022 Redeemable at par at end of
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 27th December, 6,826.37 Zero Coupon 08th April, 2022 Redeemable at par at end of
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 7th January, 4,368.88 Zero Coupon 08th April, 2022 Redeemable at par at end of
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 25th January, 4,164.09 Zero Coupon 08th April, 2022 Redeemable at par at end of
MATURITY 08/04/2022
ZERO COUPON SECURED RATED 10,00,000 25th April, 2019 10,239.58 Zero Coupon 08th April, 2022 Redeemable at par at end of
LISTED REDEEMABLE NON 1079 days from the date of
MATURITY 08/04/2022
Total 1,253,636.68
Note 20(b): Redeemable non-convertible debentures (Unsecured) as on 31st March, 2022
Face
Date of Date of
Series Details Value Per Amount Interest Rate (%) Redeemable Terms
Allotment Redemption
Debenture
7.57% UNSECURED RATED LISTED 3,00,000 06th August, 10,960.04 7.57 % p.a. 3rd August, 2035 Redeemable at par at end of
REDEEMABLE NON CONVERTIBLE PARTLY 2020 5475 days from the date of
PAID DEBENTURES. SERIES ABFL NCD allotment
‘EP1’ FY 2020-21. DATE OF MATURITY
03/08/2035


Note 20(c): Commercial papers (Unsecured) as at 31st March, 2023

Interest
Face Value Date of
Series Details Date of Allotment Amount Rate Redeemable Terms
Per Debenture Redemption
(%)
ABFL/2022-23/CP121 5,00,000 30th January, 49,713 7.55% 28th April, Redeemable at par at end of 88
2023 2023 days from the date of allotment
ABFL/2022-23/CP073 - 074 5,00,000 02nd November, 7.57% 02nd May, Redeemable at par at end of 181
ABFL/2022-23/CP075 5,00,000 07th November, 7.57% 2nd May, Redeemable at par at end of 176
72,025
ABFL/2022-23/CP122 5,00,000 31st January, 7.55% 2nd May, Redeemable at par at end of 91
ABFL/2022-23/CP125 5,00,000 17th February, 2,477 7.63% 15th May, Redeemable at par at end of 87
ABFL/2022-23/CP126 - 130 5,00,000 17th February, 97,501 7.63% 19th May, Redeemable at par at end of 91
ABFL/2022-23/CP131 5,00,000 24th February, 7.63% 26th May, Redeemable at par at end of 91
59,289
ABFL/2022-23/CP139 5,00,000 27th February, 7.84% 26th May, Redeemable at par at end of 88
ABFL/2022-23/CP081 - 085 5,00,000 17th November, 7.57% 31st May, Redeemable at par at end of 195
113,520
ABFL/2022-23/CP141 - 144 5,00,000 02nd March, 7.84% 31st May, Redeemable at par at end of 90
ABFL/2022-23/CP145 - 146 5,00,000 03rd March, 44,390 7.95% 02th June, Redeemable at par at end of 91
ABFL/2022-23/CP101 5,00,000 08th December, 7.57% 07th June, Redeemable at par at end of 181
ABFL/2022-23/CP113 5,00,000 13th January, 7.62% 07th June, Redeemable at par at end of 145
83,815
ABFL/2022-23/CP115 - 120 5,00,000 16th January, 7.62% 07th June, Redeemable at par at end of 142
ABFL/2022-23/CP147 5,00,000 13th March, 9,843 7.95% 12th June, Redeemable at par at end of 91
ABFL/2022-23/CP109 5,00,000 04th January, 2,951 7.47% 20th June, Redeemable at par at end of 167
ABFL/2022-23/CP110 - 111 5,00,000 13th January, 7.72% 13th July, Redeemable at par at end of 181
24,954
ABFL/2022-23/CP112 5,00,000 16th January, 7.72% 13th July, Redeemable at par at end of 178
ABFL/2022-23/CP123 - 124 5,00,000 10th February, 10,699 7.80% 10th August, Redeemable at par at end of 181
ABFL/2022-23/CP132 - 133 5,00,000 21st February, 7.99% 21st August, Redeemable at par at end of 181
ABFL/2022-23/CP134 5,00,000 22nd February, 7.99% 21st August, Redeemable at par at end of 180
50,423
ABFL/2022-23/CP135-136 5,00,000 23rd February, 7.99% 21st August, Redeemable at par at end of 179
ABFL/2022-23/CP137-138 5,00,000 24th February, 7.99% 21st August, Redeemable at par at end of 178
ABFL/2022-23/CP140 5,00,000 28th February, 19,377 7.99% 25th August, Redeemable at par at end of 178
ABFL/2022-23/CP148 -149 5,00,000 15th March, 20,874 8.14% 14th March, Redeemable at par at end of 365
Total 6,61,851.38

Note 20(c): Commercial papers (Unsecured) as at 31st March, 2022

(₹ in Lakhs)
Face Interest
Date of
Series Details Value Per Date of Allotment Amount Rate Redeemable Terms
Redemption
Debenture (%)
ABFL/2021-22/CP201 5,00,000 14th February, 19,153.81 5.10% 10th February, Redeemable at par at end of 361
ABFL/2021-22/CP196 5,00,000 07th January, 2022 9,636.28 4.91% 06th January, Redeemable at par at end of 364
2023 days from the date of allotment
ABFL/2021-22/CP195 5,00,000 04th January, 2022 19,280.35 4.91% 03rd January, Redeemable at par at end of 364
ABFL/2021-22/CP204 5,00,000 18th February, 2,410.77 4.97% 27th December, Redeemable at par at end of 312
ABFL/2021-22/CP169 5,00,000 16th December, 14,507.95 4.85% 12th December, Redeemable at par at end of 361
ABFL/2021-22/CP204 5,00,000 18th February, 14,540.01 4.97% 18th November, Redeemable at par at end of 273
ABFL/2021-22/CP092 5,00,000 26th October, 2021 19,511.90 4.50% 21st October, Redeemable at par at end of 360
ABFL/2021-22/CP041 5,00,000 12th July, 2021 4,942.40 4.40% 07th July, Redeemable at par at end of 360
ABFL/2021-22/CP208 5,00,000 15th March, 2022 32,206.78 4.40% 14th June, Redeemable at par at end of 91
ABFL/2021-22/CP206 5,00,000 24th February, 54,678.17 4.27% 20th May, Redeemable at par at end of 85
ABFL/2021-22/CP201 5,00,000 14th February, 59,719.04 4.28% 10th May, Redeemable at par at end of 85
ABFL/2021-22/CP168 5,00,000 07th December, 62,941.52 4.25% 08th April, Redeemable at par at end of 122
Total 3,13,528.98
NOTE 21: BORROWINGS OTHER THAN DEBT SECURITIES

(₹ in Lakhs)
Amortised through profit Amortised through profit
and loss and loss
account account
account account
Term Loan from Banks (Secured) 37,34,866.82 - - 37,34,866.82 21,00,005.16 - - 21,00,005.16
Cash Credit from Banks (Secured) 40,064.61 - - 40,064.61 26,262.23 - - 26,262.23
External Commercial Borrowings 1,95,022.40 - - 1,95,022.40 2,41,699.63 - - 2,41,699.63
from foreign banks (secured)
Inter Corporate borrowing 56,966.13 - - 56,966.13 - - - -
(Unsecured)
Book Overdraft 1,01,275.70 - - 1,01,275.70 1,84,848.14 - - 1,84,848.14
Collateralised borrowing and 20,002.99 - - 20,002.99 - - - -
lending obligation (CBLO) against
Government securities (secured)
Working Capital Demand Loan from 3,30,398.81 - - 3,30,398.81 2,18,899.88 - - 2,18,899.88
Bank (Secured)
Total 44,78,597.46 - - 44,78,597.46 27,71,715.04 - - 27,71,715.04
Borrowings in India 42,83,575.06 - - 42,83,575.06 25,30,015.41 - - 25,30,015.41
Borrowings outside India 1,95,022.40 - - 1,95,022.40 2,41,699.63 - - 2,41,699.63
Total 44,78,597.46 - - 44,78,597.46 27,71,715.04 - - 27,71,715.04


Note 21(a): Term Loan from Banks as at 31st March, 2023 : Secured
(₹ in Lakhs)
Repayment Term Tenure Interest Range Amount
Up to 7.00% -
7.01% - 8.00% 70,283.98
Bullet Up to 5 years
8.01% - 9.00% 67,033.68
9.01% - 10.00% -
Up to 7.00% -
7.01% - 8.00% 666,433.89
Annually Up to 5 years
8.01% - 9.00% 282,925.21
9.01% - 10.00% 100,935.46
Up to 7.00% -
7.01% - 8.00% 313,608.09
Up to 5 years
8.01% - 9.00% 1,081,065.48
9.01% - 10.00% -
Half Yearly
Up to 7.00% 45,153.92
7.01% - 8.00% 291,106.10
Above 5 Years
8.01% - 9.00% 67,844.12
9.01% - 10.00% -
Up to 7.00% -
7.01% - 8.00% 163,337.36
Up to 5 years
8.01% - 9.00% 387,702.09
9.01% - 10.00% 33,377.55
Quarterly
Up to 7.00% -
7.01% - 8.00% 23,050.58
Above 5 Years
8.01% - 9.00% 110,128.13
9.01% - 10.00% -
Up to 7.00% -
7.01% - 8.00% -
Monthly Up to 5 years
8.01% - 9.00% 12,467.18
9.01% - 10.00% 18,414.00
Total 3,734,866.82
Nature of Security: Term Loan from Bank is secured by hypothecation of receivables.
Note 21(b): External Commercial Borrowings as at 31st March, 2023 : Secured

(₹ in Lakhs)
Up to 7.00% -
Up to 5 years 7.01% - 8.00% 27,138.46
8.01% - 9.00% 65,271.11
Bullet Up to 7.00% -
Above 5 Years 7.01% - 8.00% -
8.01% - 9.00% 1,02,612.83
Total 1,95,022.40
Nature of Security: External Commercial Borrowings are secured by hypothecation of receivables.

Note 21(c): Loan repayable on Demand from Banks as at 31st March, 2023: Secured
(₹ in Lakhs)
Nature Repayment Term Tenure Interest Range Amount
Upto 7.00% -
Working Capital Demand Loan Bullet Up to 5 years
7.01% - 8.00% 3,30,398.81
Upto 7.00% -
Cash Credit Bullet Up to 5 years
7.01% - 8.00% 40,064.61
Total 3,70,463.42
Nature of Security: Loan repayable on demand from Bank is secured by hypothecation of receivables.
Note 21(d): Loan repayable on Demand from Banks as at 31st March, 2023: Unsecured
(₹ in Lakhs)
Up to 7.00% -
Inter Corporate borrowing Bullet Up to 1 year 7.01% - 8.00% 44,269.55
8.01% - 9.00% 12,696.58
Total 56,966.13
Note 21(e): Loan repayable on Demand from Banks as at 31st March, 2023: Secured
Collateralised borrowing and lending obligation (CBLO) Bullet 3 Days Up to 7.00% 20,002.99
Total 20,002.99
Nature of Security: Loan repayable on demand from Bank is secured by Government Securities.
Note 21(a): Term Loan from Banks as at 31st March, 2022 : Secured
Up to 7.00% 148,840.16
7.01% - 8.00% 167,378.68
Up to 7.00% 281,570.31
Annually Up to 5 years
7.01% - 8.00% 123,888.39
Up to 7.00% 301,658.18
Up to 5 years
Half Yearly 7.01% - 8.00% 342,180.96
Above 5 Years Up to 7.00% 122,735.57
Up to 7.00% 426,022.84
Up to 5 years
Quarterly 7.01% - 8.00% 94,294.29
Above 5 Years 7.01% - 8.00% 14,163.32
Monthly Up to 5 years Up to 7.00% 77,272.46
Total 2,100,005.16
Nature of Security: Term loan from bank is secured by hypothecation of receivables.


Note 21(b): External Commercial Borrowings as at 31st March, 2022 : Secured

Up to 7.00% 22,741.50
7.01% - 8.00% 1,17,554.55
Above 5 Years Up to 7.00% 1,01,403.58
Total 2,41,699.63
Nature of Security: External Commercial Borrowings are secured by hypothecation of receivables.
Note 21(c): Loan repayable on Demand from Banks as at 31st March, 2022: Secured
Working Capital Demand Loan Bullet Up to 5 years Upto 7.00% 2,18,899.88
Cash Credit Bullet Up to 5 years 7.01% - 8.00% 26,262.23
Total 2,45,162.11
Nature of Security: Loan repayable on demand from Bank is secured by hypothecation of receivables.
NOTE 22: SUBORDINATED LIABILITIES

Amortised through profit Amortised through profit
and loss and loss
account account
account account
Perpetual debt instruments to
the extent they do not qualify as
equity instruments (Unsecured)
(i) from banks - - - - - - - -
(ii) from other parties 21,123.13 - - 21,123.13 21,111.98 - - 21,111.98
Subordinate debt (Unsecured) 2,23,867.32 - - 2,23,867.32 2,27,622.01 - - 2,27,622.01
Total 2,44,990.45 - - 2,44,990.45 2,48,733.99 - - 2,48,733.99
Subordinate liabilities in India 2,44,990.45 - - 2,44,990.45 2,48,733.99 - - 2,48,733.99
Subordinate liabilities outside - - - - - - - -
India
Total 2,44,990.45 - - 2,44,990.45 2,48,733.99 - - 2,48,733.99
Note 22(a): Perpetual debt instruments as at 31st March, 2023

Face Value Per Date of Interest Date of
Series Details Amount Redeemable Terms
Debenture Allotment Rate (%) Redemption
ABFL Perpetual ‘PD1’ 10,00,000 21st July, 21,123.13 8.70% 21st July, Redeemable at par at end of 3652
FY2017-18 2017 2027 days from the date of allotment

Note 22(b): Subordinate debt (Unsecured) as at 31st March, 2023

Face Value Per Interest Date of
Series Details Date of Allotment Amount Redeemable Terms
Debenture Rate (%) Redemption
ABFL Sub Debt Series 10,00,000 04thJune, 10,801.83 9.85% p.a. 02ndJune, Redeemable at par at end of 3650
'1' FY 2013-14 2013 2023 days from the date of allotment
ABFL Sub Debt Series 10,00,000 12th December, 5,134.16 9.75% p.a. 12th December, Redeemable at par at end of 3653
'A' FY 2014-15 2014 2024 days from the date of allotment
ABFL Sub Debt Series 10,00,000 09th January, 4,584.93 9.45% p.a. 9th January, Redeemable at par at end of 3653
'B' FY 2014-15 2015 2025 days from the date of allotment
ABFL Sub Debt Series 10,00,000 17th June, 2,680.71 9.25% p.a. 6th June, Redeemable at par at end of 3642
'A1' FY 2015-16 2015 2025 days from the date of allotment
ABFL Sub Debt Series 10,00,000 14th July, 3,190.29 9.25% p.a. 11th July, Redeemable at par at end of 3650
'B1' FY 2015-16 2015 2025 days from the date of allotment
ABFL Sub Debt Series 10,00,000 25th August, 3,474.41 9.25% p.a. 22nd August, Redeemable at par at end of 3650
'C1' FY 2015-16 2015 2025 days from the date of allotment
ABFL Sub Debt Series 10,00,000 08th March, 2,508.55 9.10% p.a. 6th March, Redeemable at par at end of 3650
'D1' FY 2015-16 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 10th March, 803.30 9.10% p.a. 10th March, Redeemable at par at end of 3652
'E1' FY 2015-16 2016 2026 days from the date of allotment
'F1' FY 2015-16 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 23rd June, 5,602.15 9.10% p.a. 23rd June, Redeemable at par at end of 3652
'SC1' FY 2016-17 2016 2026 days from the date of allotment
'SD1' FY 2016-17 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 29th September, 20,815.42 8.90% p.a. 29th Redeemable at par at end of 3652
'SF1' FY 2016-17 2016 September, days from the date of allotment
2026
ABFL Sub Debt Series 10,00,000 21st November, 20,557.13 8.90% p.a. 20th November, Redeemable at par at end of 3651
'SH1' FY 2016-17 2016 2026 days from the date of allotment
'SL1' FY 2016-17 2017 2027 days from the date of allotment
ABFL Sub Debt Series 10,00,000 18th May, 17,654.84 8.50% p.a. 18th May, Redeemable at par at end of 3652
'SB1' FY 2017-18 2017 2027 days from the date of allotment
ABFL Sub Debt Series 10,00,000 04th December, 25,688.39 9.76% p.a 4th December, Redeemable at par at end of 3653
'SI1' FY 2018-19 2018 2028 days from the date of allotment
ABFL Sub Debt Series 10,00,000 06th June, 2019 21,516.93 8.95% p.a 6th June, Redeemable at par at end of 3653
'SC1' FY 2019-20 2029 days from the date of allotment
ABFL Sub Debt Series 10,00,000 30th December, 10,758.47 8.95% p.a. 6th June, Redeemable at par at end of 3446
ABFL Sub Debt Series 10,00,000 13th February, 5,379.23 8.95% p.a. 6th June, Redeemable at par at end of 3401
ABFL SUBDEBT Series 10,00,000 29th December, 8,111.26 7.43% p.a. 27th December, Redeemable at par at end of 3650
'SI 1' FY 20-21 2020 2030 days from the date of allotment
ABFL SUBDEBT Series 10,00,000 11th June, 7,902.16 7.34% p.a. 11th June, Redeemable at par at end of 3652
'SC 1' FY 20-21 2021 2031 days from the date of allotment
ABFL Subdebt NCD Series 1,00,00,000 06th December, 3,520.99 7.43% p.a. 5th December, Redeemable at par at end of 3651
‘S11’ FY2021-22 2021 2031 days from the date of allotment
ABFL Subdebt NCD Series 1,00,00,000 28th February, 21,125.90 7.43% p.a. 5th December, Redeemable at par at end of 3567
‘S11’ FY2021-22 2022 2031 days from the date of allotment
Total 2,23,867.32


Note 22(a): Perpetual debt instruments as at 31st March, 2022

Face Value Per Date of Interest Date of
Debenture Allotment Rate (%) Redemption
ABFL Perpetual ‘PD1’ 10,00,000 21st
July, 21,111.98 8.70% p.a. 21st
July, Redeemable at par at end of 3652
FY2017-18 2017 2027 days from the date of allotment
Note 22(b): Subordinate debt (Unsecured) as at 31st March, 2022

Face Value Per Date of Interest Rate Date of
Debenture Allotment (%) Redemption
ABFL Sub debt NCD 1,00,00,000 06th
December, 3,516.51 7.43% p.a. 05thDecember, Redeemable at par at end of 3651
Series ‘S11’ FY2021-22 2021 2031 days from the date of allotment
ABFL Sub debt NCD 1,00,00,000 28th February, 21,099.06 7.43% p.a. 05th December, Redeemable at par at end of 3567
Series ‘S11’ FY2021-22 2022 2031 days from the date of allotment
'SC 1' FY 20-21 2021 2031 days from the date of allotment
ABFL Sub debt Series 10,00,000 29th December, 8,108.50 7.43% p.a. 27th December, Redeemable at par at end of 3650
'SI 1' FY 20-21 2020 2030 days from the date of allotment
ABFL Sub Debt Series 10,00,000 30th December, 10,763.27 8.95% p.a. 06th June, Redeemable at par at end of 3446
ABFL Sub Debt Series 10,00,000 13th February, 5,381.64 8.95% p.a. 06th June, Redeemable at par at end of 3401
'SI1' FY 2018-19 2018 2028 days from the date of allotment
ABFL Sub Debt Series 10,00,000 18th May, 17,645.00 8.50% p.a. 18th May, Redeemable at par at end of 3652
'SB1' FY 2017-18 2017 2027 days from the date of allotment
'SL1' FY 2016-17 2017 2027 days from the date of allotment
ABFL Sub Debt Series 10,00,000 21st November, 20,545.15 8.90% p.a. 20th November, Redeemable at par at end of 3651
'SH1' FY 2016-17 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 29th September, 20,803.39 8.90% p.a. 29th September, Redeemable at par at end of 3652
'SF1' FY 2016-17 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 23rd June, 5,599.55 9.10% p.a. 23rd June, Redeemable at par at end of 3652
ABFL Sub Debt Series 10,00,000 10th March, 803.17 9.10% p.a. 10th March, Redeemable at par at end of 3652
'E1' FY 2015-16 2016 2026 days from the date of allotment
'F1' FY 2015-16 2016 2026 days from the date of allotment
'D1' FY 2015-16 2016 2026 days from the date of allotment
ABFL Sub Debt Series 10,00,000 25th August, 3,473.06 9.25% p.a. 22nd August, Redeemable at par at end of 3650
'C1' FY 2015-16 2015 2025 days from the date of allotment
'B1' FY 2015-16 2015 2025 days from the date of allotment

Face Value Per Date of Interest Rate Date of

Debenture Allotment (%) Redemption
ABFL Sub Debt Series 10,00,000 17thJune, 2,678.76 9.25% p.a. 06thJune, Redeemable at par at end of 3642
'A1' FY 2015-16 2015 2025 days from the date of allotment
ABFL Sub Debt Series 10,00,000 09th January, 4,584.67 9.45% p.a. 09th January, Redeemable at par at end of 3653
'B' FY 2014-15 2015 2025 days from the date of allotment
'A' FY 2014-15 2014 2024 days from the date of allotment
ABFL Sub Debt Series 10,00,000 04th June, 10,795.08 9.85% p.a. 02nd June, Redeemable at par at end of 3650
ABFL Sub Debt Series 10,00,000 22nd February, 1,117.72 10.60% p.a. 20th May, Redeemable at par at end of 3740
ABFL Sub Debt 10,00,000 25th May, 2,724.51 10.50% p.a. 20th May, Redeemable at par at end of 3647
Series '1' FY 2012-13 2012 2022 days from the date of allotment
Total 227,622.01
NOTE 23: LEASE LIABILITY

(₹ in Lakhs)
As at As at
Particulars
Lease liability for right to use assets 19,648.20 12,910.38
Total 19,648.20 12,910.38
NOTE 24: OTHER FINANCIAL LIABILITIES

(₹ in Lakhs)
As at As at
Particulars
Advance from customers 37,764.48 17,211.02
Payables for salaries, bonus and other employee benefits 14,737.46 8,708.88
Other payable 16,417.88 21,093.39
Total 68,919.82 47,013.29
NOTE 25: CURRENT TAX LIABILITIES (NET)

(₹ in Lakhs)
As at As at
Particulars
Provision for income tax (Net of advance tax ₹ 90,047.08 lakhs; 31st March, 2022 ₹ 39,672.70 lakhs) 13,664.09 1,513.10
Total 13,664.09 1,513.10
NOTE 26: PROVISIONS

(₹ in Lakhs)
As at As at
Particulars
Employee benefit
Gratuity 3,662.62 3,217.03
Provision for compensated absences 1,138.07 1,659.29
Long term Incentive Plans (LTIP) 1,663.03 5,545.37
Total 6,463.72 10,421.69


NOTE 27: OTHER NON-FINANCIAL LIABILITIES

(₹ in Lakhs)
As at As at
Particulars
Revenue received in advance 3,817.18 3,640.22
Tax deducted at source payable 2,234.52 2,213.67
Goods and service tax payable 6,253.43 2,270.42
Other statutory dues payable 461.20 300.08
Total 12,766.33 8,424.39
NOTE 28: EQUITY SHARE CAPITAL

(₹ in Lakhs)
As at As at
Particulars
Authorised
1,270,000,000 (31st March, 2022: 1,270,000,000) equity shares of ₹ 10/- each 1,27,000.00 1,27,000.00
100,00,00,000 (31st March, 2022: 100,00,00,000) Preference Shares of ₹ 10/- each 1,00,000.00 1,00,000.00
1,00,00,000 (31st March, 2022: 1,00,00,000) 8 % Compulsory Convertible Cumulative 1,000.00 1,000.00
Preference Shares of ₹ 10/- each
Total 2,28,000.00 2,28,000.00
Issued, Subscribed and fully paid up
662,100,822 (31st March, 2022: 662,100,822) equity shares of ₹ 10/- each 66,210.08 66,210.08
Total 66,210.08 66,210.08
Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of the year:
Particulars Number Amount
As at 01st April, 2021 66,21,00,822 66,210.08
Issued during the year - -
As at 31st March, 2022 66,21,00,822 66,210.08
Issued during the year - -
As at 31st March, 2023 66,21,00,822 66,210.08
Terms/ rights attached to equity shares

The Company has only one class of equity shares having a face value of ₹ 10/- per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed if any, by the Board
of Directors is subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of
the Company, the holders of equity shares will be receiving remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Shares held by holding/ultimate holding company and/or their subsidiaries/associates:

Name of Share holder
Number Amount Number Amount
Aditya Birla Capital Limited, holding company* 66,21,00,772 66,210.08 66,21,00,772 66,210.08
66,21,00,772 66,210.08 66,21,00,772 66,210.08

Details of shareholders holding more than 5% shares in the Company:

Name of Share holder % of total paid-up % of total paid-up
Number Number
equity capital equity capital
Aditya Birla Capital Limited, holding company* 66,21,00,772 100% 66,21,00,772 100%
Total 66,21,00,772 100% 66,21,00,772 100%
Details of Shareholding of Promoters:

Shares held by promoters at the end of the year
S. % Change during
Promoter name No. of Shares %of total shares
No. the year
1 Aditya Birla Capital Limited, holding company* 66,21,00,772 100% -
Total 66,21,00,772 100%
*Balance shares are held by nominees on behalf of the holding Company.
NBFC’s objectives, policies and processes for managing capital:

For above disclosures Refer Note 48.
NOTE 29: OTHER EQUITY

(₹ in Lakhs)
Particulars Amount
Securities Premium Account
As at 01st April, 2021 3,63,738.29
Add: Additions during the year -
As at 31st March, 2022 3,63,738.29
Add: Additions during the year -
As at 31st March, 2023 3,63,738.29
Special Reserve pursuant to Section 45-IC of the RBI Act, 1934

As at 01st April, 2021 97,984.64
Add: Transferred during the year 24,366.61
As at 31st March, 2022 1,22,351.25
Add: Transferred during the year 31,075.15
As at 31st March, 2023 1,53,426.40
Capital Reserve
As at 01st April, 2021 (10,452.11)
Add: Other Additions/ Deductions during the year -
As at 31st March, 2022 (10,452.11)
Add: Other Additions/ Deductions during the year -
As at 31st March, 2023 (10,452.11)
Capital Redemption Reserve

As at 01st April, 2021 1,000.00
Add: Transferred during the year -
As at 31st March, 2022 1,000.00
As at 31st March, 2023 1,000.00


(₹ in Lakhs)
Particulars Amount
Share Options Outstanding Account
As at 01st April, 2021 -
Add: Employee Stock Options Amortisation for the Year -
Less: Transferred to Securities Premium on ESOPs Exercised -
Less: On Account of Lapse of Unvested Options -
Less: Transfer to General Reserve on account of Lapse of Vested Options -
As at 31st March, 2022 -
Add: Employee Stock Options Amortisation for the Year 483.19
Less: Transferred to Securities Premium on ESOPs Exercised -
Less: On Account of Lapse of Unvested Options -
Less: Transfer to General Reserve on account of Lapse of Vested Options -
As at 31st March, 2023 483.19
General Reserve
As at 1st April, 2021 13,660.95
As at 31st March, 2022 13,660.95
As at 31st March, 2023 13,660.95
Retained Earnings
As at 01st April, 2021 3,53,991.63
Add: Profit for the year 1,10,833.06
Less: Appropriations
Re-measurement reserves on defined benefit plans 397.77
Transfer to Capital Redemption Reserve -
Dividend paid (Interim) (10,924.66)
Transfer to Special Reserve (24,366.61)
Total appropriations (34,893.50)
As at 31st March, 2022 4,29,931.19
Add: Profit for the year 1,55,375.75
Less: Appropriations
Re-measurement reserves on defined benefit plans 320.28
Dividend paid (Interim) -
Transfer to Special Reserve (31,075.15)
Total appropriations (30,754.87)
As at 31st March, 2023 5,54,552.07
Other Comprehensive Income

As at 01st April, 2021 (2,345.54)
Add: Changes in fair value of equity instruments carried at FVTOCI 18.12
Add: Fair Value change on derivatives designated as cash flow hedge 1,929.76
As at 31st March, 2022 (397.66)
Add: Changes in fair value of equity instruments carried at FVTOCI 54.98
Add: Fair Value change on derivatives designated as cash flow hedge 344.94
As at 31st March, 2023 2.26
Total other equity
As at 01st April, 2021 8,17,577.86
As at 31st March, 2022 9,19,831.90
As at 31st March, 2023 10,76,411.05

NOTE 30: NATURE AND PURPOSE OF RESERVE

Securities Premium Reserve: Security premium reserve is used to record the premium on the issue of shares. The reserve is
utilised in accordance with provisions of the Companies Act, 2013.
Special Reserve: Special reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the "RBI Act").
Appropriation from this Reserve Fund is permitted only for the purposes specified by RBI.
Capital Reserve: Capital reserve refers to difference on account of net assets taken over and purchase consideration paid for
merger of wealth management undertaking of Aditya Birla Money Mart Limited with the Company and the difference on account
of net assets taken over and purchase consideration paid for merger of transaction business of Aditya Birla Capital Technology
Services Limited, ABCTSL (formerly known as Aditya Birla My Universe Limited, ABMUL) undertaking with the Company.
Capital Redemption reserve: Preference shares of ₹ 10 Crore were redeemed at the Board meeting held on 30 th January,
2020. As per the provisions of Companies Act, 2013, the preference shares were redeemed out of the profits of the company
and therefore a sum equivalent to the nominal amount of shares redeemed were transferred to capital redemption reserve.
Share options outstanding account: Share options outstanding account is created as required by Ind AS 102 'Share Based
Payments' on the Employee Stock Option Scheme operated by the Company for employees of the Company.
General Reserve: This reserve is created on account of merger. As per court order, this reserve can be utilised for distribution
of dividends.
Retained Earnings: Retained earnings refer to the percentage of net earnings not paid out as dividends, but retained by the
Company to be reinvested in its core business, or to pay debts.
Other Comprehensive Income: The Company has elected to recognise changes in the fair value of certain instruments in
equity securities and debt instruments in other comprehensive income. These changes are accumulated with the FVTOCI reserve
within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are
de-recognised.
The Company uses hedging instruments as part of its management of foreign currency risk and interest rate risk associated on
borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts and cross
currency interest rate swaps. To the extent these hedges are effective, the change in fair value of the hedging instrument is
recognised in the cash flow hedging reserve. Amounts recognised in the cash flow hedging reserve is reclassified to the statement
of profit or loss when the hedged item affects profit or loss (e.g. interest payments).


NOTE 31: INTEREST INCOME

(₹ in Lakhs)
For the year ended 31st March, 2023 For the year ended 31st March, 2022
On Financial On Financial
On Financial On Financial On Financial On Financial
Particulars Assets Assets
Assets Assets Assets Assets
measured at Total measured at Total
classified at measured at classified at measured at
Amortised Amortised
FVTPL FVTOCI FVTPL FVTOCI
cost cost
Interest on Loans 7,62,284.20 - - 7,62,284.20 5,45,792.82 - - 5,45,792.82
Interest income from 39.17 12,056.82 - 12,095.99 - 6,073.47 - 6,073.47
investments
Interest on deposits 274.52 - - 274.52 1,262.58 - - 1,262.58
with Banks
Other interest income 5,949.10 - - 5,949.10 - - - -
Total 7,68,546.99 12,056.82 - 7,80,603.81 5,47,055.40 6,073.47 - 5,53,128.87
NOTE 32: DIVIDEND INCOME

(₹ in Lakhs)
For the year ended For the year ended
Particulars
Dividend from Long Term Investment 284.97 285.31
Total 284.97 285.31
NOTE 33: FEES AND COMMISSION INCOME

(₹ in Lakhs)
Particulars
Syndication and Other Fee Income 33,010.05 16,763.20
Brokerage and Commission Income 8,088.04 8,117.60
Total 41,098.09 24,880.80
NOTE 34: NET GAIN ON FAIR VALUE CHANGES

Net gain/ (loss) on financial instruments at fair value through profit or loss
(₹ in Lakhs)
Particulars
On Trading portfolio
- Investments 1,710.83 203.12
Derivatives 4.72 -
On financial instruments designated at fair value through profit or loss (15.59) (12.50)
Total 1,699.96 190.62
Fair Value changes:
- Realised 765.60 884.10
- Unrealised 934.36 (693.48)
Total 1,699.96 190.62

NOTE 35: OTHER INCOME

(₹ in Lakhs)
Particulars
Miscellaneous Income 3,080.88 1,201.65
Total 3,080.88 1,201.65
NOTE 36: FINANCE COSTS

(₹ in Lakhs)
Particulars liabilities liabilities
liabilities liabilities
measured at fair Total measured at fair Total
measured at measured at
value through value through
Amortised Cost Amortised Cost
profit or loss profit or loss
Interest on debt 5,549.56 1,32,712.26 1,38,261.82 181.22 1,15,731.45 1,15,912.67
securities
Interest on borrowings - 2,25,301.00 2,25,301.00 - 1,34,119.67 1,34,119.67
other than debt
securities
Interest on subordinated - 20,769.48 20,769.48 - 19,403.09 19,403.09
liabilities
Finance cost on lease - 1,005.54 1,005.54 - 892.61 892.61
liability
Others - 379.93 379.93 - 581.55 581.55
Total 5,549.56 3,80,168.21 3,85,717.77 181.22 2,70,728.37 2,70,909.59
NOTE 37: IMPAIRMENT ON FINANCIAL INSTRUMENTS

The below table shows impairment loss on financial instruments charged to statement of profit and loss based
on category of financial instrument :
(₹ in Lakhs)
On Financial On Financial On Financial On Financial
Particulars instrument instrument instrument instrument
Total Total
measured at fair measured at measured at fair measured at
value through OCI Amortised Cost value through OCI Amortised Cost
Bad debts/Advances - 36,133.71 36,133.71 - 59,897.44 59,897.44
Written off (net of
recoveries)
Loans - 52,846.18 52,846.18 - 5,363.88 5,363.88
Trade Receivable - 42.03 42.03 - 84.68 84.68
Investments - 1,325.62 1,325.62 - - -
Total - 90,347.54 90,347.54 - 65,346.00 65,346.00


NOTE 38: EMPLOYEE BENEFIT EXPENSES

(₹ in Lakhs)
Particulars
Salaries and Wages 65,197.04 47,795.93
Contribution to Provident and other Funds 2,376.80 1,670.74
Contribution to Gratuity Funds 705.01 733.07
Share based payments to Employees 1,729.90 200.76
Staff welfare expenses 2,274.64 1,672.30
Total 72,283.39 52,072.80
NOTE 39: DEPRECIATION, AMORTIZATION AND IMPAIRMENT

(₹ in Lakhs)
Particulars
Depreciation of tangible assets 1,714.46 699.72
Amortization of intangible assets 3,939.13 3,552.59
Depreciation and amortisation on lease assets 2,959.69 2,583.08
Total 8,613.28 6,835.39
NOTE 40: OTHER EXPENSES

(₹ in Lakhs)
Particulars
Rent 2,249.53 1,166.82
Repairs and maintenance
- Plant and machinery 82.30 62.91
- Others 1,526.51 1,703.33
Communication costs 690.06 512.15
Printing and stationery 506.97 320.51
Advertisement and publicity 582.71 474.81
Directors’ fees, allowances and expenses 89.34 92.41
Auditors’ fees and expenses 209.62 187.90
Legal and professional charges 9,864.94 5,820.09
Insurance 3,745.75 2,696.58
Business Support Expenses 10,706.63 8,119.76
Travelling and conveyance 2,356.60 831.67
Water and Electricity expenses 488.21 322.89
Rates and taxes 131.64 105.09
Contract Service Charges 1,243.54 655.58
Information Technology Expenses 6,042.91 3,389.62
Postage Expenses 270.23 224.97
Bank charges 253.43 88.29
Brokerage and Commission 204.66 123.42
Corporate Social Responsibility (CSR) Expenses 2,226.19 2,094.85
Sub-Brokerage and Fees 580.70 450.06

(₹ in Lakhs)
Particulars
Recruitment Expenses 703.60 436.55
Loss on property, plant and equipment’s (net) 33.10 6.00
Collection cost 13,818.66 4,468.50
Miscellaneous expenses 2,179.52 1,457.07
Total 60,787.35 35,811.83
Auditors’ Fees and Expenses

(₹ in Lakhs)
Particulars
As auditor:
For Statutory Audit (including Limited Review, Internal Control Financial Reporting (ICFR)) 198.73 169.05
For Tax audit 6.54 6.54
In any other capacity
For Other Services (including certification and other services) 4.35 12.31
Total 209.62 187.89
Details of CSR Expenditure

(₹ in Lakhs)
Particulars
a) Gross amount required to be spent by the Company during the year 2,226.19 2,085.00
b) Amount spent during the year 2,801.89 1,517.79
c) Shortfall/ (Excess spent after adjusting the shortfall of the earlier year) (8.49) *567.21
d) Total of previous years shortfall/(Excess) (8.49) -
e) Reason for shortfall NA NA
f) Nature of CSR activities Refer Note 1 Refer Note 1
g) Details of related party transactions NA NA
h) Where a provision is made with respect to a liability incurred by entering into a contractual NA NA
obligation, the movements in the provision during the year shall be shown separately
CSR Activities: Note:1

For FY 2022-23: Promoting education including for children of covid impacted families and scholarship to underprivileged girls
and children of martyred soldiers, Health care, Employment enhancing vocation skills to youths, Training to promote nationally
recognised and olympic sports including athlete mentorship programs and Empowering women.
For FY 2021-22: Promoting education including for children of covid impacted families, health care, Employment enhancing
vocation skills to youths, Training to promote nationally recognised and olympic sports, Measures for the benefit of armed forces
veterans, war widows and their dependents, Conservation of natural resources and maintaining quality of soil and water.
*There is a change in the Regulation stating that if the CSR contribution of ABFL lying in the bank account of the respective NGO
is unspent at the end of a FY, the same is required to be returned to ABFL and has to be maintained in a separate bank account
by ABFL. The balance shown here is the same unspent amounts transferred back by NGOs.


NOTE 41: INCOME TAX

The components of income tax expense are as under:
(₹ in Lakhs)
Particulars
Current tax* 68,583.07 38,609.10
Deferred tax relating to origination and reversal of temporary differences (14,940.44) (730.52)
Total tax charge 53,642.63 37,878.58
* Includes tax of earlier years of ₹ 4,893.06 lakhs.
OCI section - Deferred tax related to items recognised in OCI are as under:
(₹ in Lakhs)
Particulars
Net loss/(gain) on remeasurements 242.22 788.91
Income tax expense charged to OCI 242.22 788.91
Reconciliation of the total tax charge:

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 enacted corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by enacted
domestic tax rate for the year ended 31st March, 2023 and 31st March, 2022 are as follows:
(₹ in Lakhs)
Particulars
Accounting profit before tax 2,09,018.38 1,48,711.64
At enacted corporate tax rate of 25.168% (As at 31st March, 2022 - 25.168%) 52,605.75 37,427.75
The effects of disallowances of earlier years net of adjustments to DTA 583.51 344.60
Tax on non deductible expenses 453.37 106.23
Income tax expense reported in the statement of profit and loss 53,642.63 37,878.58
Effective income tax rate for the year 25.66% 25.47%
Deferred Tax
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
(₹ in Lakhs)
Deferred Deferred Profit and Loss Transition
OCI
Particulars Tax Assets Tax Liabilities (Income)/Loss Reserve
31st March, 2023 31st March, 2023 31st March, 2023 31st March, 2023 31st March, 2023
Expected Credit Loss Allowances 39,057.18 - (16,540.59) - -
Employee benefit provisions and other 551.62 - 1,889.79 242.22 -
residual
Depreciation/Amortisation 1,044.34 - (289.64) - -
Total 40,653.14 - (14,940.44) 242.22 -
Net 40,653.14

(₹ in Lakhs)
Deferred Deferred Tax Profit and Loss Transition
OCI
Particulars Tax Assets Liabilities (Income)/Loss Reserve
31st March, 2022 31st March, 2022 31st March, 2022 31st March, 2022 31st March, 2022
Expected Credit Loss Allowances 22,516.59 - (1,159.30) - -
Employee benefit provisions and other residual 2,683.63 - 347.11 788.91 -
Depreciation/Amortisation 754.70 - 81.67 - -
Total 25,954.92 - (730.52) 788.91 -
Net 25,954.92
NOTE 42: EARNINGS PER SHARE

Basic earnings per share (EPS) is calculated by dividing the net profit for the year attributable to equity holders of the Company
by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of
equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion
of all the dilutive potential equity shares into equity shares of the Company.
(₹ in Lakhs)
Particulars
Net Profit after Tax 1,55,375.75 1,10,833.06
Less: Interest on Financial Liabilities (including taxes) - -
Net Profit after Tax available for equity shareholders 1,55,375.75 1,10,833.06
Weighted average number of ordinary shares for basic earnings per share 66,21,00,822 66,21,00,822
Weighted average number of ordinary shares for diluted earnings per share 66,21,89,640 66,21,00,822
Earnings per share
Basic earnings per share (₹) 23.47 16.74
Diluted earnings per share (₹) 23.46 16.74
NOTE 43(A): RETIREMENT BENEFIT PLAN

Defined Contribution Plan
The Company makes Provident Fund, Pension Fund, Superannuation Fund, Employee State Insurance Scheme, Maharashtra
Labour Welfare Fund and National Pension Scheme contributions which are defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The
contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
(₹ in Lakhs)
Particulars 31st March, 2023 31st March, 2022
(i) Contribution to Employees Provident Fund 1,683.54 1,208.10
(ii) Contribution to Employees Pension Fund 514.26 342.45
(iii) Contribution to Employees State Insurance Corporation 4.89 0.20
(iv) Contribution to Maharashtra Labour Welfare Fund 1.55 0.86
(v) Contribution to National Pension Scheme 172.56 119.13
Total 2,376.80 1,670.74
Defined Benefit Plan

The Company has a defined benefit gratuity plan (funded). The Company’s defined benefit gratuity plan is a final salary plan for
employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the
Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit.
The level of benefits provided depends on the member’s length of service and last drawn salary. The fund is managed by Aditya
Birla Sun Life Insurance Company Limited which is fellow subsidiary of the Company.
The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss and the
funded status and amounts recognized in the balance sheet for the gratuity plan.
172
Changes in the defined benefit obligation and fair value of Reimbursement Rights as at 31st March, 2023 are as under:
(₹ in Lakhs)
Gratuity cost charged to profit or loss Remeasurement gains/(losses) in other comprehensive income
Return on Actuarial Actuarial
Sub-total Reimbursement changes changes
Particulars Net Group Group Sub-total 31st
01st April, Service included Benefits Rights (excluding arising from arising from Experience Contributions Transfer
interest Company Company included March,
2022 cost in profit or paid amounts included changes in changes in variance by employer in/out
expense Allocation Allocation in OCI 2023
loss in net interest demographic financial
expense) assumptions assumptions
Defined benefit (3,217.03) (696.56) (194.49) 55.33 (835.72) (95.36) - (55.33) 22.70 356.85 161.27 485.49 - - (3,662.62)
obligation
Fair value of 2,161.98 - 130.71 - 130.71 - (57.49) - - - - (57.49) 500.00 - 2,735.20
Reimbursement
Rights
Benefit / (1,055.05) (696.56) (63.78) 55.33 (705.01) (95.36) (57.49) (55.33) 22.70 356.85 161.27 428.00 500.00 - (927.42)
(Liability)
Changes in the defined benefit obligation and fair value of Reimbursement Rights as at 31st March, 2022 are as under:
(₹ in Lakhs)
Gratuity cost charged to profit or loss Remeasurement gains/(losses) in other comprehensive income
Return on Actuarial Actuarial
Sub-total Reimbursement changes changes
Particulars Net Group Group Sub-total 31st
1st April, Service included Benefits Rights (excluding arising from arising from Experience Contributions Transfer
interest Company Company included March,
2021 cost in profit paid amounts changes in changes in variance by employer in/out
expense Allocation Allocation in OCI 2022
or loss included in net demographic financial
interest expense) assumptions assumptions
Defined benefit (3,085.29) (648.03) (194.24) (12.42) (854.68) 232.55 - 12.42 556.32 (101.71) 23.37 490.40 - - (3,217.03)
obligation
Fair value of 1,931.76 - 121.62 - 121.62 (232.55) 41.15 - - - - 41.15 300.00 - 2,161.98
Reimbursement
Rights
The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below:
(₹ in Lakhs)
Expected return on Reimbursement Rights 7.25% 6.05%
OVERVIEW
CORPORATE
Discount Rate 7.25% 6.05%

Salary Escalation Rate 7.00% 7.00%
Retirement age 60 Years 60 years
Mortality rate Indian Assured Indian Assured
REPORTS
Lives mortality Lives mortality

STATUTORY
(2012-14) (2012-14)

FINANCIAL
STATEMENTS
173
Attrition / Withdrawal rates, based on age: (per annum)

(₹ in Lakhs)
Up to 30 years 34.00% 34.00%
31 - 40 years 25.00% 25.00%
41 - 50 years 13.00% 13.00%
Above 50 years 2.00% 2.00%
Note: The above information is certified by actuary, and this has been relied upon by the auditors.
The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference
to market yields as at Balance Sheet date.
Disaggregation of Reimbursement Rights:

(₹ in Lakhs)
Unquoted investments:
Insurer managed funds (Investments with Aditya Birla Sun Life Insurance Company Limited) 2,735.20 2,161.98
Total 2,735.20 2,161.98
A quantitative sensitivity analysis for significant assumption is as shown below:

(₹ in Lakhs)
Assumptions Discount rate Salary
Sensitivity level 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease
Impact on defined benefit obligation - (31st March, 2023) 3,531.50 3,802.15 3,802.11 3,530.33
Impact on defined benefit obligation - (31st March, 2022) 3,097.68 3,344.33 3,342.82 3,097.92
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation
as a result of reasonable changes in key assumptions occurring at the end of the year.
The following payments are expected contributions to the defined benefit plan in future years:
(₹ in Lakhs)
Expected payment for future years 31st March, 2023 31st March, 2022
Within the next 12 months (next annual reporting year) 410.06 425.07
Between 2 and 5 years 1,614.09 1,312.51
Between 6 and 9 years 1,273.08 959.86
10 years and above 3,710.88 2,858.52
Total expected payments 7,008.11 5,555.96
The Company expects to contribute ₹ 1,618.73 lakhs (31st March, 2022 : ₹ 1,588.37 lakhs) to the fund in the next financial year.
The weighted average duration of the defined benefit obligation as at 31st March, 2023 is 7 years (31st March, 2022: 8 years)
Other Long Term Incentive Benefits

Liability for long term incentive benefits and for compensated absences are determined based on actuarial valuations.


Employee Stock Option Plan (ESOP) by Aditya Birla Capital Limited

Pursuant to ESOP Plan being established by the holding company (i.e. Aditya Birla Capital Limited), stock options were granted to the employees
(including key management personnel) of the Company. Total cost incurred by the holding company till date is being recovered from the Company
over the period of vesting. Accordingly, a sum of ₹ 1,244.83 lakhs (31st March, 2022 ₹ 198.86 lakhs) has been recovered from the Company during
the year, which has been charged to the Statement of Profit and Loss. The balance sum of ₹ 6,662.89 lakhs will be recovered in future years.
NOTE 43(B): SHARE BASED PAYMENTS

The Nomination and Remuneration Committee of the Company has approved the following grants to select senior level executives
of the Company in accordance with the Stock Option Scheme. Details of grants are given as under:
As on 31st March, 2023
Exercise Fair value of Options Options vested Options Options Options Options
Grant date
price (₹) Options granted and exercisable unvested exercised cancelled outstanding
05th November, 2022 283.20 131.90 21,78,706 - 21,78,706 - - 21,78,706
31st January, 2023 283.20 141.10 10,169 - 10,169 - - 10,169
21,88,875 - 21,88,875 - - 21,88,875
Weighted average fair value of stock options granted during the year is as follows:
(₹ in Lakhs)
Scheme Name : ABFL Scheme 2022
No. of options granted 21,88,875.00 -
Weighted average fair value (₹) 131.94 -
Following table depicts range of exercise prices and weighted average remaining contractual life:
Weighted average
Range of exercise Weighted average remaining
For all grants No. of options
prices (₹) exercise price (₹) contractual life
(years)
Outstanding at the beginning of the year - - - -
Granted during the year 21,88,875.00 283.20 283.20 2.11
Cancelled during the year - - - -
Exercised during the year - - - -
Outstanding at the end of the year 21,88,875.00 283.20 283.20 2.11
Exercisable at the end of the year - - - -
Method used for accounting for share based payment plan:

The Company has used the fair value method to account for the compensation cost of stock options to employees. The fair value
of options used are estimated on the date of grant using the Black–Scholes Model. The key assumptions used in Black–Scholes
Model for calculating fair value as on the date of respective grants are:
Life of Option
Grant date Risk Free Rate Dividend Yield Volatility
(in Years)
05th November, 2022 4.10 7.50% 0.70 36.3%
31st January, 2023 3.80 7.40% 0.70 37.3%

Characteristics of ESOPs issued

Grant date 05st November, 2022 31st January, 2023
Conversion On exercise, 1 ESOP converts to 1 equity on exercise, 1 ESOP ,converts to 1 equity
share of ABFL share of ABFL
Vesting date* 50% each at the end of 2nd and 3rd year 50% each at the end of 2nd and 3rd year
from Grant Date from grant date
Additional condition ESOPs can be exercise only once equity ESOPs can be exercise only once equity
share of ABFL are listed on stock exchange share of ABFL are listed on stock exchange
Exercise price (in INR) per ESOP 283.20 283.20
Exercise Period* 5 year from the date of vesting 5 year from the date of 1st grant i.e.
5th November, 2022
Settlement settlement of equity shares of ABFL Settlement in Equity shares of ABFL
* Exercise period as per management’s assessment
Details related to Share based payments for KMPs

(₹ in Lakhs)
Count of ABFL ESOP’s Granted as on 31st March, 2023 31st March, 2022
Rakesh Singh 284,742 -
Pradeep Kumar Agrawal 42,650 -
Ankur Deepak Bhai Shah 9,063 -
Tushar Shah 122,032 -
NOTE 44: MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or
settled. With regard to loans and advances to customers, the Company uses the same basis of expected repayment behaviour
as used for estimating the EIR. Issued debt reflect the contractual coupon amortisations.
(₹ in Lakhs)
Particulars Within 12 After 12 Within 12 After 12
Total Total
months months months months
Assets
Financial assets
Cash and cash equivalents 38,763.43 - 38,763.43 59,571.14 - 59,571.14
Bank balance other than cash and - - - 9,681.37 - 9,681.37
cash equivalents
Derivative financial instruments 9.81 73.83 83.64 19.02 - 19.02
Trade and Other Receivables 4,030.61 - 4,030.61 1,243.96 - 1,243.96
Loans* 21,49,618.63 57,35,331.47 78,84,950.10 13,18,611.61 40,42,134.41 53,60,746.02
Investments 3,41,516.04 28,753.58 3,70,269.62 1,57,397.94 12,005.62 1,69,403.56
Other financial assets 11,740.15 3,011.64 14,751.79 3,987.16 1,374.65 5,361.81
Non-financial Assets
Current tax asset (net) - 15,150.75 15,150.75 - 34,239.10 34,239.10
Deferred tax assets (net) - 40,653.14 40,653.14 - 25,954.92 25,954.92
Property, plant and equipments - 5,130.16 5,130.16 - 1,881.37 1,881.37
Intangible assets under development - 890.07 890.07 - 1,089.05 1,089.05
Other intangible assets - 6,244.06 6,244.06 - 7,008.52 7,008.52
Right of use Lease Assets - 18,749.72 18,749.72 - 12,187.33 12,187.33
Other non financial assets 8,345.89 4,269.43 12,615.32 6,837.64 1,695.62 8,533.26
Total assets 25,54,024.56 58,58,257.85 84,12,282.41 15,57,349.84 41,39,570.58 56,96,920.43


(₹ in Lakhs)
Particulars Within 12 After 12 Within 12 After 12
Total Total
months months months months
Liabilities
Financial Liabilities
Derivative financial instruments 27.74 1,341.50 1,369.24 7,799.24 - 7,799.24
Trade payables 69,756.46 - 69,756.46 24,221.63 - 24,221.63
Debt Securities 9,77,818.72 13,75,666.79 23,53,485.51 6,36,206.50 9,41,919.20 15,78,125.70
Borrowings (other than debt security) 14,89,474.28 29,89,123.18 44,78,597.46 11,74,711.92 15,97,003.12 27,71,715.04
Subordinated Liabilities 20,590.45 2,24,400.00 2,44,990.45 14,333.99 2,34,400.00 2,48,733.99
Lease liabilities 4,359.45 15,288.75 19,648.20 2,911.98 9,998.40 12,910.38
Other Financial liabilities 68,919.82 - 68,919.82 47,013.29 - 47,013.29
Non-financial Liabilities
Current tax liabilities (net) 13,664.09 - 13,664.09 1,513.10 - 1,513.10
Provisions 734.66 5,729.06 6,463.72 10,421.69 - 10,421.69
Other non-financial liabilities 12,766.33 - 12,766.33 8,424.39 - 8,424.39
Total Liabilities 26,58,112.00 46,11,549.28 72,69,661.28 19,27,557.73 27,83,320.72 47,10,878.47
* Stage 3 loans have been considered in after 12 months bucket.
Note: Classification of Loans under the different maturity buckets is based on the due date, which has been relied upon by the auditors.
NOTE 45: CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

(₹ in Lakhs)
As at Other As at
Particulars Cash Flows
01st April, 2022 (Non-Cash) 31st March, 2023
Debt Securities 15,78,125.70 7,81,720.00 (6,360.19) 23,53,485.51
Borrowings other than debt securities 27,71,715.04 16,94,861.67 12,020.75 44,78,597.46
Subordinate Liabilities 2,48,733.99 (3,500.00) (243.54) 2,44,990.45
Total liabilities from financing activities 45,98,574.73 24,73,081.67 5,417.02 70,77,073.42
(₹ in Lakhs)
As at Other As at
Particulars Cash Flows
01st April, 2021 (Non-Cash) 31st March, 2022
Debt Securities 16,57,875.04 (53,850.00) (25,899.34) 15,78,125.70
Borrowings other than debt securities 22,45,460.08 5,36,465.32 (10,210.36) 27,71,715.04
Subordinate Liabilities 2,18,183.26 30,000.00 550.73 2,48,733.99
Total liabilities from financing activities 41,21,518.38 5,12,615.32 (35,558.97) 45,98,574.73
Note :
1. The above amounts are including interest accrued but not due.

NOTE 46: CONTINGENT LIABILITIES, COMMITMENTS AND LEASING ARRANGEMENTS

(A) Contingent Liabilities
(₹ in Lakhs)
As at As at
Particulars
Disputed Income Tax Liability* 4,081.05 7,072.17
Disputed Service Tax Liability** 69.84 131.49
Claims against the Company not acknowledged as debts 768.47 638.00
Corporate guarantees, Guarantee on Overdraft, Letter of credit and Letter of comfort given by the 8,007.94 11,533.84
Company on behalf of the clients***
Total 12,927.30 19,375.50
* (i) Disputed Income Tax Liability

(₹ in Lakhs)
As at As at
Particulars
Disallowances of Depreciation on Intangibles, Disallowance of Donation forming part of CSR expenditure 1,049.41 806.41
u/s 80G, Disallowance of certain Expenses, Disallowance under Section 14A, Disallowance of PF/ESIC,
Disallowance of CENVAT Credit w/off.
Disallowances of exceptional losses of Wealth Business - 3,234.12
Interest on Non Performing Assets (NPA) 3,031.64 3,031.64
Total 4,081.05 7,072.17
Note: Interest and consequential changes, if any arising on settlement of those contingent liabilities are not ascertainable.
**(ii) Show Cause cum demand Notice No. ST/Audit-III/P-3/Gr-7/Aditya Birla/SCN/2016 dated 09th May, 2017 was issued to
the Company demanding Service Tax of ₹ 69.84 lakhs on penal/ default interest.
*** Represents the limit utilized by client of the Guarantee/ Overdraft/Letter of Credit and Letter of Comfort given by the
Company.
(B) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) on
account of property, plant and equipment ₹ 1,420.62 lakhs (31st March, 2022: ₹ 814.53 lakhs) and on account of intangible
assets ₹ 1,275.20 lakhs (31st March, 2022: ₹ 1,575.92 lakhs).
Undisbursed commitments where the Company does not have an unconditional rights to cancel the undrawn/un-availed/
unused portion of the loan at any time during the subsistence of the loan ₹ Nil.


(C) Lease Disclosures

(i) Following are the changes in the carrying value of right of use assets for the year ended 31st March, 2023:
Particulars Amount
Gross Carrying Value
Balance as at 1st April, 2021 13,912.45
Additions 7,065.31
Deletion 4,374.94
Balance as at 31st March, 2022 16,602.82
Additions 10,501.68
Deletion 1,429.49
Accumulated Amortisation
As at 1st April, 2021 4,507.14
Additions 2,583.08
Deletion 2,674.73
Additions 2,959.69
Deletion 449.89
Net Carrying Value as at 31st March, 2022 12,187.33
Net Carrying Value as at 31st March, 2023 18,749.72
(ii) Amounts recognised in profit and loss for the year ended 31st March, 2023
(₹ in Lakhs)
Year Ended Year Ended
Particulars
Depreciation expense on right-of-use assets 2,959.69 2,583.08
Interest expense on lease liabilities 1,005.54 892.61
Expense relating to leases of low value assets 2,249.53 1,165.56
Income from subleasing right-of-use assets (1,067.78) (373.63)
(iii) The Maturity analysis of lease liabilities as at 31st March, 2023 :

(₹ in Lakhs)
As at As at
Particulars
Within 12 months 4,359.45 2,911.98
After 12 months 15,288.75 9,998.40
Total 19,648.20 12,910.38

(iv) The following is the movement in lease liabilities during the year ended March, 31, 2023:
(₹ in Lakhs)
Particulars
Balance as at 1st April, 2022 12,910.38 10,224.64
Additions 9,944.49 6,700.12
Surrender of premises (1,047.04) (2,051.28)
Finance Cost accrued during the year 1,005.54 892.61
Payment of Lease Liabilities (3,165.16) (2,855.71)
Balance as at 31st March, 2023 19,648.21 12,910.38
(v) The table below provides details regarding the contractual maturities of lease liabilities as at 31st March, 2023
on an undiscounted basis:
(₹ in Lakhs)
As at As at
Particulars
Less than one year 4,502.29 3,009.34
One to Five years 13,968.01 9,770.89
More than Five years 5,614.53 2,942.75
Total 24,084.83 15,722.98
When measuring lease liabilities of the Company, lease payments have been discounted using its incremental borrowing rate at
01st April, 2022. The weighted average rate applied ranges between 4.83% p.a. - 7.05% p.a.
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 lease liabilities as and when they fall due.
NOTE 47: RELATED PARTY DISCLOSURES Aditya Birla Sunlife AMC Limited
I) List of Related Parties as per IND AS -24 : Aditya Birla ARC Limited
(A) Ultimate Holding Company: Aditya Birla Money Mart Limited
Grasim Industries Limited Aditya Birla Sun Life Pension Management Limited
(B) Holding Company: Aditya Birla Stressed Asset AMC Private Limited
Aditya Birla Capital Limited Aditya Birla PE Advisors Private Limited
Aditya Birla Insurance Brokers Limited
(C) Subsidiaries / Fellow Subsidiaries:
Waacox Energy Private Limited
Fellow Subsidiaries
Ultratech Cement Limited
Aditya Birla Money Limited
Essel Mining & Industries Limited
Aditya Birla Money Insurance Advisory Services Limited
Aditya Birla Special Situations Fund - I
Aditya Birla Capital Technology Services Limited
ABREL EPC Limited(ABREPC)
Aditya Birla Wellness Private Limited
Aditya Birla Sun Life Insurance Company Limited (D) Associates of holding company
Aditya Birla Financial Shared Services Limited Aditya Birla Capital Foundation
Aditya Birla Housing Finance Limited Aditya Birla Health Insurance Co. Limited (w.e.f. 21 Oct,
2022)


(E) Other related parties in which Directors of Ultimate Mr. Ajay Srinivasan (Ceased to be a Director with effect
Holding Company are interested from 3 August, 2022)
Aditya Birla Management Corporation Private Limited Mr. Baldev Raj Gupta (Ceased to be a Director with effect
from 27 July, 2021)
(F) Promoter group company Mr. S C Bhargava (Director)
Hindalco Industries Limited Mr. Rajat Jain (Director with effect from 9 march 2023)
(G) Key managerial personnel/Directors (H) Relative of key managerial personnel/Directors

Mr. Rakesh Singh (Managing Director & Chief Executive Ms. Anahita Singh (Daughter - Mr. Rakesh Singh)
Officer)
Ms. Anushka Singh (Daughter - Mr. Rakesh Singh)
Mr. Tushar Shah (Appointed as Chief Executive Officer-
Ms. Vibha Singh (Spouse - Mr. Rakesh Singh)
PFSG with effect from 08 October, 2021)
Mr. Sanjay Kumar Miranka (Ceased as Chief Financial Notes:-
Officer with effect from 22 June, 2021)
a) The related party relationships have been as identified
Mr. Pradeep Kumar Agrawal (Appointed as Chief Financial by the management on the basis of the requirements
Officer with effect from 08 October, 2021) of the Indian Accounting Standard IND AS–24
Mr. Kamlesh Rao (Director) ‘Related Party Disclosures’ and the same have been
Mr. Ankur Deepak Shah (Company Secretary) relied upon by the Auditors.
Mr. D J Kakalia (Ceased to be a Director with effect from b) The relationships disclosed above are for the entities
8 March, 2023) where control exists and with whom transactions
have taken place during the year.
Mr. Jitender Balakrishnan (Ceased to be a Director with
effect from 8 March, 2023) c) Transactions shown above are excluding GST, if any.
Mr. Ashwani Puri (Ceased to be a Director with effect from d) Managerial Remuneration excludes provision for
8 March, 2023) gratuity, pension and compensated absences, since
it is provided on actuarial basis for the company as
Ms. Alka Bharucha (Director)
a whole and includes director sitting fees.
Ms. Vishakha Mulye (Director with effect from 21 October
e) The NCD balance shown above includes purchase and
2022)
sale from secondary market and are held by related
Mr. Nagesh Pinge (Director with effect from 9 March, 2023) party as on reporting dates.

II) Disclosure in respect of transactions with related parties during the year & balance oustanding as at
reporting date:
(₹ in Lakhs)
(Audited) (Audited)
Reimbursement of Legal and Professional expenses
Aditya Birla Capital Limited - 66.50
Dividend
Aditya Birla Capital Limited - 10,924.66
Reimbursement of Employee cost
Aditya Birla Capital Limited- ESOP 1,244.83 198.86
Business Support Expenses
Aditya Birla Capital Limited 3,676.62 2,911.16
Employee Cost Recovered
Aditya Birla Capital Limited 26.96 -
Paid up Equity Share Capital Outstanding
Equity Share Premium Outstanding
Payable
Aditya Birla Capital Limited 493.77 362.45
Statutory Dues (GST)
Aditya Birla Capital Limited 37.26 35.06
Ultimate Holding Company
Reimbursement of Employee cost - -
Grasim Industries Limited 15.43 3.08
MF/FD Commission Received on Behalf of investment done by Related Party
Hindalco Industries Limited 41.86 49.55
Grasim Industries Limited 35.63 65.35
Subsidiary/Associate of Ultimate Holding Company
Sale of Assets
Grasim Industries Limited 20.97 -
Ultratech Cement Limited - 7.65
MF/FD Commission Received on Behalf of investment done by Related Party
Ultratech Cement Limited 25.99 90.89
Hindalco Industries Limited 0.78
Ultratech Cement Limited - 0.85
Remuneration to KMPs*
Mr. Rakesh Singh (MD & CEO) 1,420.60 870.79
Mr. Tushar Shah (Appointed as CEO-PFSG w.e.f. 08 October, 2021) 929.36 158.10
Mr. Sanjay Kumar Miranka (Ceased as CFO w.e.f. 22 June, 2021) - 133.25
Mr. Pradeep Kumar Agrawal (Appointed as CFO w.e.f. 08 October, 2021) 209.56 34.51
Mr. Ankur Deepak Shah (CS) 76.23 55.80
Paid to CSR Fund
Aditya Birla Capital Foundation 2,727.06 1,482.94
Brokerage Expenses/ Service Charges
Aditya Birla Money Limited 22.29 27.66
Aditya Birla Money Insurance Advisory Services Limited 911.25 782.76


(₹ in Lakhs)
(Audited) (Audited)
Reimbursement of Administrative expenses
Aditya Birla Wellness Private Limited 34.17 0.34
Aditya Birla Capital Technology Services Limited 8.29 5.70
Aditya Birla Sunlife AMC Limited 3.62 -
Aditya Birla Sun Life Insurance Company Limited 0.05 0.36
Aditya Birla Financial Shared Services Limited 475.27 428.28
Aditya Birla Management Corporation Private Limited - 1.14
Business Support Expenses
Aditya Birla Management Corporation Private Limited 3,828.25 3,162.17
Aditya Birla Financial Shared Services Limited 2,221.50 1,654.20
Aditya Birla Housing Finance Limited 159.22 199.72
Scholarship Expenses
Anahita Singh (Director’s relative) 23.81 -
IT Support Expenses
Custodian Charges Expenses
Director sitting fees
Mr. D J Kakalia 15.00 18.25
Mr. Jitender Balakrishnan 12.50 14.00
Mr. Ashwani Puri 11.00 14.75
Ms. Alka Bharucha 10.25 11.50
Mr. Baldev Raj Gupta - 2.50
Mr. Subhash Chandra Bhargava 12.75 10.00
Mr. Nagesh Pinge 1.75 -
Mr. Rajat Kumar Jain 1.00 -
Insurance Premium paid
Interest expenses
Aditya Birla Sun Life Insurance Company Limited 1,528.36 2,313.06
Reimbursement of Rent expenses
Aditya Birla Insurance Brokers Limited 2.62 3.84
Aditya Birla Health Insurance Company Limited 4.70 -
Aditya Birla Sunlife AMC Limited 208.39 41.16
MF/FD/Alternate asset Commission Received on Behalf of investment done by Related Party
Waacox Energy Private Limited 2.81 3.70
Mr. Rakesh Singh (MD & CEO) 32.36 15.68
Mr. Ajay Srinivasan-Director(Resigned w.e.f 3rd Aug’2022) 1.47 10.38
Aditya Birla Health Insurance Company Limited 1.78 2.32
Aditya Birla Wellness Private Limited - -
Aditya Birla Health Insurance Company Limited 2.43 3.03
Aditya Birla Money Insurance Advisory Services Limited - 4.35

(₹ in Lakhs)
(Audited) (Audited)
Aditya Birla ARC Limited 39.48 -
Aditya Birla Insurance Brokers Limited - 0.92
Interest Income
ABREL EPC Limited(ABREPC) 338.81 -
Waacox Energy Private Limited 394.09 388.78
Employee cost recovered
Aditya Birla Money Mart Limited 3.86 28.35
Aditya Birla Sun Life Pension Management Limited - 0.19
Grasim Industries Limited 3.51 -
Referral Fees Income
Brokerage / Commission Income
Ashwani Kumar Puri(Director) (Resigned w.e.f 8 March, 2023) 6.78 10.17
Rent recovered
Aditya Birla Money Limited 19.34 -
Aditya Birla Sun Life Insurance Company Limited 189.06 -
Administrative Expenses Recovered
Aditya Birla ARC Limited 10.02 0.21
Aditya Birla Stressed Asset AMC Private Limited 1.93 -


(₹ in Lakhs)
(Audited) (Audited)
Business Support Expenses Recovered
Sale of assets
Aditya Birla ARC Limited 0.65 -
Aditya Birla Housing Finance Limited - 22.37
Purchase of assets
Aditya Birla Capital Technology Services Limited - 4.11
Aditya Birla Money Mart Limited - 4.44
Aditya Birla Wellness Private Limited - 17.41
Redemption of NCDs
Aditya Birla Sun Life Insurance Company Limited - 15,000.00
Investment in fund made
Aditya Birla Special Situations Fund - I 20.41 15.26
Redemption from Investment
Aditya Birla Special Situations Fund - I 5.75 2.17
Prepaid Expenses
Redeemable NCDs
Aditya Birla Sun Life Insurance Company Limited 25,704.22 15,466.86
Investment in fund outstanding
Aditya Birla Special Situations Fund - I 22,535.12 33.32
Loans and Advances
ABREL EPC Limited(ABREPC) 20,507.00 -
Waacox Energy Private Limited 5,602.16 4,356.58
Repayment of Loans and Advances
Waacox Energy Private Limited 257.84 -
Payable
Aditya Birla Insurance Brokers Limited - 11.17
Aditya Birla Management Corporation Private Limited 538.86 751.16
Aditya Birla Sunlife AMC Limited - 160.60
Hindalco Industries Limited 0.78 -
Aditya Birla Health Insurance Company Limited - 3.03
Receivable

(₹ in Lakhs)
(Audited) (Audited)
Deposit Payable
Aditya Birla Housing Finance Limited 30.28 -
Deposit Receivable
Aditya Birla Management Corporation Private Limited 615.12 615.12
Deposit Placed (Transaction during the period)
Aditya Birla Sunlife AMC Limited - 120.00
Deposit Received
Aditya Birla Housing Finance Limited 30.28 -
Deposit Received back (Transaction during the period)
Aditya Birla Sun Life Insurance Company Limited - 88.30
Purchase of Aditya Birla Special Situations Fund I
Aditya Birla Money Mart Ltd 14,383.01 -
Aditya Birla Capital Technology Services Ltd 7,501.29 -
Insurance Claim Sttlement received
Loans and advances given
ABREL EPC Limited(ABREPC) 20,507.00 -
Waacox Energy Pvt Ltd 1,503.42 -
Notes:-
a) The related party relationships have been as identified by the management on the basis of the requirements of the Indian Accounting Standard
IND AS–24 ‘Related Party Disclosures’ and the same have been relied upon by the Auditors.
b) The relationships disclosed above are for the entities where control exists and with whom transactions have taken place during the year.
c) Transactions shown above are excluding GST, if any.
d) Managerial Remuneration excludes provision for gratuity, pension and compensated absences, since it is provided on actuarial basis for the
company as a whole and includes director sitting fees.
e) The NCD balance shown above includes purchase and sale from secondary market and are held by related party as on reporting dates.
*The above numbers is in the nature of short term employee benefits as per Ind AS 24


NOTE 48: CAPITAL

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other
reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to
maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a capital adequacy ratio, which is weighted assets
divided by total capital derived as per the RBI requirements. As per the RBI guidelines, Company being a Non Banking Finance
Company has to maintain 15% of capital adequacy ratio.
The actual Capital Adequacy Ratio is as under:

(₹ in Lakhs)
Capital Adequacy Ratio 16.38% 21.77%
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings. Breaches in meeting the financial covenants
would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing loans and borrowing in the current year.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2023
and 31st March, 2022.
NOTE 49: FINANCIAL INSTRUMENTS

Note 49.1: Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”:
(a) Category-wise classification for applicable financial assets:
(₹ in Lakhs)
As at As at
Particulars
(I) Measured at amortised cost:
i) Cash and cash equivalents 38,763.43 59,571.14
ii) Bank balance other than Cash and cash equivalents - 9,681.37
iii) Trade receivables 4,030.61 1,243.96
iv) Loans 78,84,950.10 53,60,746.02
v) Investment in Debentures 7,482.74 -
vi) Investment in Security Receipts 1,317.50 -
vii) Other financial assets 14,751.79 5,361.81
Sub Total 79,51,296.17 54,36,604.30
(II) Measured at fair value through profit or loss (FVTPL)
i) Investment in Govt Securities 2,47,031.28 47,137.87
ii) Investment in Equity instruments 34.82 45.17
iii) Investment in Preference Shares 3,500.00 3,500.00
iv) Investment in Alternate Funds 24,643.33 8,225.19
v) Investment in Debentures 85,430.31 1,10,260.07
vi) Investment in Mutual Funds 520.91 -
Sub Total 3,61,160.65 1,69,168.30

(₹ in Lakhs)
As at As at
Particulars
(III) Designated at fair value through profit or loss (FVTPL)
i) Derivative financial instruments 50.96 19.02
Sub Total 50.96 19.02
(IV) Measured at fair value through other comprehensive income (FVTOCI):
i) Investment in Equity instruments 308.73 235.26
ii) Derivative financial instruments 32.68
Sub Total 341.41 235.26
Total (I+II+III+IV) 83,12,849.19 56,06,026.88
(b) Category-wise classification for applicable financial liabilities:

(₹ in Lakhs)
As at As at
Particulars
(I) Measured at amortised cost:
i) Trade Payables 69,756.46 24,221.63
ii) Debt securities 22,64,078.68 15,53,171.39
iii) Borrowings (other than debt securities) 44,78,597.46 27,71,715.04
iv) Subordinated liabilities 2,44,990.45 2,48,733.99
v) Lease Liabilities 19,648.20 12,910.38
vi) Other financial liabilities 68,919.82 47,013.29
Sub Total 71,45,991.07 46,57,765.72
(II) Measured at fair value through profit or loss (FVTPL) - -
Sub Total - -
(III) Designated at fair value through profit or loss (FVTPL)
i) Derivative financial Instruments not designated as cash flow hedges 654.22 28.08
ii) Debt securities 89,406.83 24,954.31
Sub Total 90,061.05 24,982.39
(IV) Measured at fair value through other comprehensive income (FVTOCI):
i) Derivative financial Instruments designated as cash flow hedges 715.02 7,771.16
Sub Total 715.02 7,771.16
Total (I+II+III+IV) 72,36,767.14 46,90,519.27
(c) Fair value of financial assets and financial liabilities measured at amortised cost:
(₹ in Lakhs)
Particulars Carrying Carrying
Fair value Fair value
amount amount
Financial assets
Loans 78,84,950.10 78,84,950.10 53,60,746.02 53,60,746.02
Investment in Debentures 7,482.74 7,482.74 - -
Investment in Security Receipts 1,317.50 1,317.50 - -
Total 78,93,750.34 78,93,750.34 53,60,746.02 53,60,746.02


(₹ in Lakhs)
Particulars Carrying Carrying
Fair value Fair value
amount amount
Financial liabilities
Debt securities 22,64,078.68 22,58,590.22 15,53,171.39 16,00,965.62
Borrowings (other than debt securities) 44,78,597.46 44,78,597.46 27,71,715.04 27,71,715.04
Subordinated liabilities 2,44,990.45 2,39,559.35 2,48,733.99 2,55,952.13
Lease Liabilities 19,648.20 19,648.20 12,910.38 12,910.38
Total 70,07,314.79 69,96,395.23 45,86,530.80 46,41,543.17
Valuation methodologies of financial instruments not measured at fair value: Below are the methodologies and assumptions
used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the
Company’s financial statements. These fair values were calculated for disclosure purposes only.
Short-term financial assets and liabilities: The carrying amounts of cash & cash equivalents, other bank balance, trade
receivables, other financial assets, trade payables and other financial liabilities are considered to be the same as their fair values,
due to their short-term nature.
Borrowings
Floating Rate Borrowings: Floating rate borrowings are valued on the basis of Applicable Benchmark (viz; Tenor Linked T-Bill,
Repo Rate, Tenor Linked MCLR, or any external benchmark as the case may be) + Spread, if applicable.
Fixed Rate Borrowings: Fixed rated borrowing are valued on the basis of valuation report shared by ICRA.
Note 49.2: Disclosure pursuant to Ind AS 113 “Fair Value Measurement”

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given
or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in
active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation
techniques for other instruments. Valuation techniques include discounted cash flow method, market comparable method, recent
transactions happened in the company and other valuation models.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal
(or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether
that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived,
financial instruments are classified based on a hierarchy of valuation techniques, as explained below :
Level 1: hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, units of
mutual funds (open ended) and traded bonds that have quoted price. The fair value of all equity instruments (including bonds)
which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant input is not based on observable market data, the instrument is included in level 3.

(A) Fair value hierarchy of financial assets and financial liabilities

(a) Measured at amortised cost:
(₹ in Lakh)
Particulars Level 1 Level 2 Level 3 Total Valuation technique for level 3 items
Financial assets:
Loans - - 78,84,950.10 78,84,950.10 Discounted Cash Flow approach
Investment in Debentures - 7,482.74 - 7,482.74
Investment in Security Receipts - - 1,317.50 1,317.50 Discounted Cash Flow approach
Total financial assets - 7,482.74 78,86,267.60 78,93,750.34
Financial liabilities:
Debt securities - 15,96,738.84 6,61,851.38 22,58,590.22 Discounted Cash Flow approach
Borrowings (other than debt securities) - - 44,78,597.46 44,78,597.46 Discounted Cash Flow approach
Subordinated liabilities - 2,39,559.35 - 2,39,559.35
Lease Liabilities - - 19,648.20 19,648.20 Discounted Cash Flow approach
Total financial liabilities - 18,36,298.19 51,60,097.04 69,96,395.23

(₹ in Lakh)
Particulars Level 1 Level 2 Level 3 Total Valuation technique for level 3 items
Financial assets:
Loans - - 53,60,746.02 53,60,746.02 Discounted Cash Flow approach
Total financial assets - - 53,60,746.02 53,60,746.02
Debt securities - 12,87,436.64 3,13,528.98 16,00,965.62 Discounted Cash Flow approach
Borrowings (other than debt securities) - - 27,71,715.04 27,71,715.04 Discounted Cash Flow approach
Subordinated liabilities - 2,55,952.13 - 2,55,952.13
Lease Liabilities - - 12,910.38 12,910.38 Discounted Cash Flow approach
Total financial liabilities - 15,43,388.77 30,98,154.40 46,41,543.17
(b) Measured at fair value through profit or loss (FVTPL)

(₹ in Lakh)
Valuation
Particulars Level 1 Level 2 Level 3 Total technique
for level 3 items
Financial assets:
Investment in Govt Securities - 2,47,031.28 - 2,47,031.28
Investment in Equity instruments 34.82 - - 34.82
Investment in Preference Shares - 3,500.00 - 3,500.00
Investment in Alternate Funds - 24,643.33 - 24,643.33
Investment in Debentures - 85,430.31 - 85,430.31
Investment in Mutual Funds 520.91 - - 520.91
Total financial assets 555.73 3,60,604.92 - 3,61,160.65



(₹ in Lakh)
Valuation
for level 3 items
Financial assets:
Investment in Govt Securities - 47,137.87 - 47,137.87
Investment in Equity instruments 45.17 - - 45.17
Investment in Preference Shares - 3,500.00 - 3,500.00
Investment in Alternate Funds - 8,225.19 - 8,225.19
Investment in Debentures - 1,10,260.07 - 1,10,260.07
Total financial assets 45.17 1,69,123.13 - 1,69,168.30
(c) Designated at fair value through profit or loss (FVTPL)

(₹ in Lakh)
Valuation
Particulars Level 1 Level 2 Level 3 Total technique for
level 3 items
Financial assets:
Derivative financial instruments 50.96 50.96
Total financial assets - 50.96 - 50.96
Derivative financial Instruments not 654.22 654.22
designated as cash flow hedges
Debt securities 89,406.83 89,406.83
Total financial liabilities - 90,061.05 - 90,061.05
As at 31 March, 2022
(₹ in Lakh)
Valuation
for level 3 items
Financial assets:
Total financial assets - 19.02 - 19.02
Derivative financial Instruments not 28.08 28.08
designated as cash flow hedges
Debt securities 24,954.31 24,954.31

(d) Measured at fair value through other comprehensive income (FVTOCI):

(₹ in Lakh)
Valuation
Particulars Level 1 Level 2 Level 3 Total technique for
level 3 items
Financial assets:
Investment in Equity instruments - - 308.73 308.73 refer (e)
Derivative financial instruments - 32.68 - 32.68
Total financial assets - 32.68 308.73 341.41
Derivative financial Instruments designated - 715.02 - 715.02
as cash flow hedges
Total financial liabilities - 715.02 - 715.02

(₹ in Lakh)
Valuation
for level 3 items
Financial assets:
Investment in Equity instruments - - 235.26 235.26 refer (e)
Total financial assets - - 235.26 235.26
Derivative financial Instruments designated - 7,771.16 - 7,771.16
as cash flow hedges
(e) Valuation techniques

Equity instruments: The listed equity instrument are actively traded on stock exchanges with readily available active prices

on a regular basis. Such instruments are classified as Level 1. Unlisted equity securities are classified at Level 3.
Investment in Preference Shares: Investment made in preference share is not actively traded on stock exchange and
such instrument are classified as level 2.
Investment in Govt Securities : The fair values of investments made in Government Securities is based on valuation
report from ICRA as at the reporting period and the same are classified under Level 2.
Investment in Alternate funds and Mutual funds : Units held in funds of AIF and Mutual funds are measured based on
their net asset value (NAV), taking into account redemption and/or other restrictions. Such instruments are generally Level
2. NAV represents the price at which the issuer will issue further units of AIF and the price at which issuers will redeem such
units from the investors.
I nvestment in Debt Securities: Fair value of these instrument is derived based on the indicative quote of price and yields
prevailing in the market as at reporting date. Company has used quoted price of national stock exchange wherever bonds
are traded actively. In cases where debt securities are not actively traded company has used CRISIL corporate bond valuer
model for measuring fair value i.e. fair value has been computed using the Fixed Income Money Market and Derivatives
Association of India (‘FIMMDA’) data on corporate bond spreads and such instruments are classified as Level 2.


Derivative Financial Instruments : A generally accepted framework for the valuation of the swap explains the position

in each leg of the swap as a ‘bond’. Therefore, a receive floating - pay fixed swap can be viewed as a portfolio consisting
a short position in fixed bond and long position a floating rate bond. The value of the swap is the net proceeds from such
bond positions i.e. Receipt – Payment. The swaps were valued on and with inputs from the swap providers using the terms
of the swap contract.
quity shares measured at Fair Value through Other Comprehensive Income: Unquoted equity shares are measured
E
at fair value through other comprehensive income on the basis of the net worth of the investee company and are classified
as Level 3.
(B) Movements in Level 3 financial instruments measured at fair value

The following tables show a reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
which are recorded at fair value:

(₹ in Lakh)
Net interest
Transfers income, net Other
As at Purchase / At 31st March,
Particulars into / (from) trading income comprehensive
1st April, 2022 (Sales) 2023
Level 3 and other income
income
Investment in Equity Instrument 235.26 - - - 73.47 308.73
Total financial investments classified in 235.26 - - - 73.47 308.73
Level 3
Total financial assets measured at fair 235.26 - - - - 308.73
value on a recurring basis

(₹ in Lakh)
Net interest
Transfers income, net Other
As at 1st April, Purchase / At 31st March,
Particulars into / (from) trading income comprehensive
2021 (Sales) 2022
Level 3 and other income
income
Investment in Equity Instrument 211.04 - - - 24.22 235.26
Total financial investments classified in 211.04 - - - 24.22 235.26
Level 3
Total financial assets measured at fair 211.04 - - - - 235.26
value on a recurring basis
(C) Sensitivity of fair value measurements to changes in unobservable market data

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.
(₹ in Lakh)
Impact of Increase in Rates on
Fair value as at
Total Comprehensive Income statement
Rates for
Particulars 31st March, 31st March, 31st March, 31st March,
31th March, 31st March, Sensitivity
2023 2023 2022 2022
2023 2022
Favourable Unfavourable Favourable Unfavourable
Investment in 308.73 235.26 5.00% 15.44 (15.44) 11.76 (11.76)
Equity Instrument

NOTE 50: REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

Company has complied with the charge creation or satisfaction registration with ROC within the statutory year.
NOTE 51: RELATIONSHIP WITH STRUCK OFF COMPANIES

Balance outstanding Relationship with
Nature of transactions with
Name of struck off Company the Struck off
struck-off Company 31st March, 2023 31st March, 2022 company (if any)
Maxin Hydro Dynamic India Private Limited Outstanding balance (Loan given) - 3.89 -
Emirate Fashions Private Limited Outstanding balance (Loan given) 10.00 10.28 -
Thanco Natural Foods Private Limited Outstanding balance (Loan given) - 19.88 -
Bee Luxe Private Limited Outstanding balance (Loan given) - 9.34 -
Alaric Healthcare Private Limited Outstanding balance (Loan given) - 8.28 -
Chennai School Of Ship Management Private Outstanding balance (Loan given) 81.00 - -
Limited
Uttam Consultancy Private Limited Outstanding balance (Loan given) 659.00 - -
Total 750.00 51.67
The above disclosure has been prepared basis the relevant information compiled by the Company on best effort basis which has
been relied upon by the auditors.
NOTE 52: RISK MANAGEMENT and procedures and that financial risks are identified,
measured and managed in accordance with the Company’s
(a) Financial risk management objectives and policies policies and risk objectives. The Board of Directors review
The Company’s principal financial liabilities comprise and agree policies for managing each of these risks, which
borrowings (Including Debt Securities & Subordinate are summarised below.
Libilities) and trade and other payables. The main purpose
of these financial liabilities is to finance and support the
The Company has identified and implemented
company’s operations. The Company’s principal financial comprehensive policies and procedures to assess, monitor
assets include loans, investments, cash and cash and manage risk throughout the Company. The risk
equivalents and other receivables that derive directly from management process is continuously reviewed, improved
its operations. and adapted in the changing risk scenario and the agility of
the risk management process is monitored and reviewed
The Company is exposed to market risk, credit risk for its appropriateness in the changing risk landscape. The
and liquidity risk. The Company’s senior management process of continuous evaluation of risks includes taking
oversees the management of these risks. The Company’s stock of the risk landscape on an event-driven basis.
senior management is supported by a Risk Management
Committee that advises on financial risks and the The Company has an elaborate process for risk
appropriate financial risk governance framework for the management. Major risks identified by the businesses and
Company. The Risk Committee provides assurance to functions are systematically addressed through mitigating
the Company’s senior management that the Company’s actions on a continuing basis.
financial risk activities are governed by appropriate policies


Operational & Business Risk The analyses exclude the impact of movements in market
Loss of Risk that is related to activities carried out within variables on the carrying values of gratuity, other post-
an entity, arising from incomplete structure, failure retirement obligations and provisions.
of systems, untrained people, inefficient products or
processes. To make the structure more robust a Board The sensitivity of the relevant profit or loss item is the
approved Operational Risk Management Framework has effect of the assumed changes in respective market risks.
been put in place which is implemented by a dedicated This is based on the financial assets and financial liabilities
team within the Risk Management function. A bottom held at 31st March, 2023 and 31st March, 2022.
up risk control self-assessment process identifies high
risk areas, potential gaps and serves as an early warning Interest rate risk
system so that remedial measures can be initiated in a Interest rate risk is the risk of loss in company’s net income
timely manner. out of change in level of interest rates and/or their implied
volatility. To mitigate the interest rate risk, ALM policy of
Market risk the company stipulates interest rate sensitivity gap of all
Market risk is the risk that the fair value of future cash the time buckets. The Interest rate sensitivity statement
flows of a financial instrument will fluctuate because of is prepared every month and placed before ALCO. The
changes in market prices. In the case of the Company, statement captures the duration of rate sensitive assets &
market risk primarily comprises of interest rate risk. liabilities of the company. The impact of change in interest
Financial instruments affected by market risk include loans rate on the earning of the company is also measured every
and borrowings. month and same is presented to ALCO.

Particulars Change in Interest rate Impact on profit Impact on profit
Impact on equity Impact on equity
before tax before tax
25 Basis Point down 11,196.49 8,323.02 6,929.29 5,164.32
50 Basis Point down 22,392.99 16,646.03 13,858.58 10,328.64
Interest rate
25 Basis Point Up (11,196.49) (8,323.02) (6,929.29) (5,164.32)
50 Basis Point Up (22,392.99) (16,646.03) (13,858.58) (10,328.64)
Foreign Exchange Risk interest payable. Under the terms of the CCS, the Company
pays interest at the fixed rate to the swap counterparty
Foreign exchange risk is the risk of impact related to
in INR and receives the floating interest payments based
fair value or future cash flows of an exposure in foreign
on the applicable benchmark (USD SOFR or JPY TONA)
currency, which fluctuate due to changes in foreign
in foreign currency.
exchange rates. The Company’s exposure to the risk of
fluctuation in foreign exchange rates primarily relates to
Credit risk
its External Commercial Borrowings. The Company uses
derivative instruments like cross currency swaps to hedge Credit risk is the risk that the Company will incur a loss
exposure to foreign currency risk. because its customers or counterparties fail to discharge
their contractual obligations. The Company manages
The Company has taken foreign currency floating rate and controls credit risk by setting limits on the amount
borrowings, which are linked to USD SOFR or JPY TONA. of risk it is willing to accept for individual counterparties
For managing the foreign currency risk and interest rate and for geographical and industry concentrations, and by
risk, arising from changes in applicable benchmark (USD monitoring exposures in relation to such limits.
SOFR or JPY TONA) on such borrowings, the Company has
entered into Cross Currency Swap (CCS) for the entire loan The Company has established a credit quality review
liability covering the entire tenor of the loan along with the process to provide early identification of possible changes

in the creditworthiness of counterparties, including regular As a part of a qualitative assessment of whether a

collateral revisions. Counterparty limits are established by customer is in default, the Company also considers a
the use of a credit risk classification system, which assigns variety of instances that may indicate unlikeness to pay.
each counterparty a risk rating. Risk ratings are subject When such events occur, the Company carefully considers
to regular revision. The credit quality review process whether the event should result in treating the customer
aims to allow the Company to assess the potential loss as defaulted and therefore assessed as Stage 3 for ECL
as a result of the risks to which it is exposed and take calculations or whether Stage 2 is appropriate. Such
corrective action. events include:
a) Significant financial difficulty of the borrower or issuer;

Impairment assessment
The ECL model Credit loss provisioning approach has b) A breach of contract such as a default or past
now moved from incurred model. This forces entity due event;
to understand the significance of credit risk and its c)
The restructuring of a loan or advance by the
movement since its initial recognition. This model ensures company on terms that the company would not
(a) timely recognition of ECLs (b) assessment of significant consider otherwise;
increase in credit risk which will provide better disclosure
(c) ascertainment of better business ratios. d) It is becoming probable that the borrower will enter
bankruptcy or other financial reorganisation; or
The references below show where the Company’s e) The disappearance of an active market for a security
impairment assessment and measurement approach is because of financial difficulties and the customer has
set out in this report. It should be read in conjunction with delay in his repayments over a month.
the Summary of significant accounting policies in Note 4.
• An explanation of the Company’s internal grading The Company’s internal rating and PD estimation
system (Note ‘Definition of default below) process
• How the Company defines, calculates and monitors the a.
Internal Rating: A robust internal credit rating
probability of default, exposure at default and loss given framework is vital for effective credit risk management.
default) (Note ‘The Company’s internal rating and PD It is specified by RBI on credit risk management that
estimation process’, ‘Probability of Default’, ‘Exposure lenders should have an internal rating framework and
at Default’ below) the lenders must have independent Credit Risk Control
Units (CRCU) or equivalents that are responsible
• When the Company considers there has been a
for the design or selection, implementation and
significant increase in credit risk of an exposure (Note
performance of their internal rating systems.
‘Significant increase in credit risk’ below)
Accordingly the Company also have an internal rating
• The Company’s policy of segmenting financial assets framework developed along with CRISIL, with ratings
where ECL is assessed on a collective basis (Note ‘Grouping being assigned to all the customer/ portfolio pool –
financial assets measured on a collective basis’ below) (eligible customers for Ratings) and used extensively
• The details of the ECL calculations for Stage 1, Stage in internal decision-making.
2 and Stage 3 assets (Notes ‘Probability of default’,
‘Exposure at default’ and ‘loss given default’ below) b. It is further specified in the policy that Internal rating/
grading/scoring of the borrower/client is at least
Definition of default Investment grade rating as per the Company’s internal
The Company considers a financial instrument defaulted credit rating model or valid/live external rating.
and therefore Stage 3 (credit impaired) for ECL calculations
generally in most cases when the borrower becomes 90
days past due on its contractual payments.


Probability of Default (PD) b. Further, for large borrowers after assessing the
PD is calculated basis likelihood that the borrower will following Risks in totality and deterioration in
default within one year horizon (Basis for Stage 1), For each factor, it is then assessed whether there is a
Stage 2 – it is defined as significant increase in credit significant increase in credit risk
risk and probability is defined as borrower’s probability to i. Industry Risk
default in lifetime.
ii. Business Risk
Exposure at Default iii. Management Risk
Gross exposure/potential gross exposure under a facility iv. Financial Risk

(i.e. the amount that is legally owed to the lender) at the v. Banking Conduct & Facility level Conduct.
time of default by a borrower. Exposure at Default gives
c. Significant increase in credit risk is also gauged
an estimate of the amount outstanding.
through Credit rating. Credit rating is an opinion of
capacity of borrower to meet its financial obligations
Loss Given Default (LGD)
to the depositor or bondholder (i.e. lender of money)
LGD is usually shown as the percentage of Exposure at on a particular issue or type of instrument (i.e. a
Default that the lender might lose in case the borrower domestic or foreign currency: short-term or medium
defaults. It depends, among others, on the type of or long-term, etc.) in a timely manner. The rating
collateral, it’s value and the expected proceeds from measures the relative risk of an issuers ability and
the sale (e.g. sales proceeds from sales of collaterals/ willingness to repay both interest and principal over
securities) of the assets, NPV net of recovery costs. the period of the rated instrument. i.e. rating signifies
the risk of default of the borrower that is rated.
Significant increase in credit risk
a. There is significant increase in credit risk, when there
is deterioration in account performance and expected
resolution is not available.
Collateral Security:
The Company’s net exposure to credit risk, after taking into account credit risk mitigation, have been tabulated below:
Particulars Nature of Nature of

Cash Cash
Outstanding Non-cash Outstanding Non-cash
collateral collateral
collateral collateral
Financial assets
Cash and cash equivalents 38,763.43 - 59,571.14 -
Bank balance other than cash and - - 9,681.37 -
cash equivalents
Trade Receivables 4,030.61 - 1,243.96 -
Loans 7,884,950.10 - Refer footnote 5,360,746.02 - Refer footnote
below below
Investments 370,269.62 - 169,403.56 -
Other financial assets 14,751.79 - 5,361.81 -
Total 8,312,849.19 - 5,606,026.88 -

The Company by way of loan sanction letter and other For guarantee’s taken, the guarantor’s creditworthiness
loan securing documents agrees with its customers on is assessed during the credit assessment process of the
collateral security to be provided by the customers in transaction. The Company has collateral type specific
secured loan exposures that are subject to credit risk. haircuts in place which are reviewed at intervals as
Collateral security enables us to recover all or part of appropriate to the type of collateral.
the outstanding exposure by liquidating the collateral
asset provided, in cases where the borrower is unable or The Company recognises that collateral can be a credit
unwilling to fulfil its primary obligations. mitigant (alternative source of repayment), but does not
replace or dilute the underwriting standards the company
Collateral security accepted by the Company could be in
adopts to underwrite credit exposures.
the form of:
a) Financial collateral in the form of pledge of equity (b) Forward looking Information :
shares, units of mutual funds, assignment of life The Company is required to provide for impairment
insurance policies; allowance basis expected credit loss (ECL), which is
b) Current assets in the form of inventories meant calculated using empirical portfolio performance and
for sale or receivables arising out of the sale of adjusted for forward looking macroeconomic factors,
finished goods as prescribed by Ind AS. The overall provisioning made
through this approach, continues to be in excess of the
c) Fixed asset (in the form of immovable properties – floor provisions as prescribed by RBI for NBFCs.
real estate, Plant and Machinery, Equipment’s) “
d) Third-party obligation (in the form of Irrevocable The assessment of credit risk and estimation of ECL is
Unconditional Guarantee issued by Bank, Third party); statistically validated. It considers all relevant information
about past events, current conditions and some elements
e) Risk participation from Credit Guarantee Fund Trust of predicted performance of the portfolio.
for Micro and Small Enterprises (CGTMSE)
f) Assignment of borrower’s rights and interests under ECL has been calculated using three main components: a
agreements with third parties. probability of default (PD), a loss given default (LGD) and
the exposure at default (EAD).
In addition, the Company also stipulates escrow of cash
flows and a Debt Service Reserve Account (DSRA) for In the process of determining the PD, the macro economic
project loans impact is intrinsically built in in our current approach. The
overall performance through the life cycle of the loan,
Collateral serves to mitigate the inherent risk of credit loss considers the impact of macro-economic parameters like
in an exposure, by either improving recoveries in the event GDP or once in events like de-monetisation etc. Most of
of a default or substituting the borrower. the portfolios have seen one to two complete economic
cycles and hence the default probabilities experienced by
As part of the assessment of a credit transaction the the Company takes into account the upturn, downturn and
availability, adequacy and suitability of collateral for central (balanced) economic scenario.
the transaction is evaluated and decided upon. The
Company’s processes includes verification of the title to In the internally rated portfolio, the Industry rating module
the collateral offered and valuation by technical experts (sourced from CRISIL under agreement) recognizes factors
where warranted. The Company accept as collateral only like demand prediction, supply side glut / constraints,
securities of good quality and have in place legally effective impact of imports and exports and the government
and enforceable documentation. policies which are more forward looking and making the
through-the-cycle default probabilities to point-in-time
default probability.


Grouping financial assets measured on a collective basis

The Company calculates ECLs either on a collective or an individual basis.
Asset classes where the Company calculates ECL on an individual basis include:
1. Corporate Portfolio
Asset classes where the Company calculates ECL on a collective basis include:
1. Retail Portfolio
The ECL methodology allows for individual assessment for corporates and therefore these loans are generally measured
individually as each of these exposures have unique characteristics and structuring. For retail exposures and exposures which
can be clubbed in homogenous pools, ECL is measured on a collective basis. This has been arrived at based on common
characteristics like nature of product, customer profile etc.
(c) Analysis of risk concentration

Concentration analysis are presented for Portfolio pool, Location, Top borrower exposures, Group exposures etc. These are
regularly analysed and presented for further review/action. Based on the exposures of the company towards various sectors,
analysis is as follows :
As at
Top 20 Industry Sectors 31st March, 2023
(%)
Real Estate Activities - Builders and Contractors 17.28%
NBFCs 3.73%
Other Trade (Wholesale/ Retail) 3.17%
Hotels, Motels and Resorts 2.86%
Construction - Infrastructure 2.57%
Finance - Investment / Others 2.41%
Lease Rental Discounting 2.30%
Textiles, Readymade Garments, Apparels - Spinning, Mfg and Trading 2.26%
Energy Renewable 2.24%
Energy Trans & Distr 2.20%
Construction/Maintenance of Roads 2.16%
Food & Beverages 1.65%
Education 1.54%
Transportation, Logistics & Allied Services 1.44%
Hospital & medical business 1.18%
Professional Services (except Medical) 1.03%
Electricals & Electronics equipments 0.97%
Chemical & related products 0.96%
Automobiles & Ancillaries 0.95%
Metals (Mfg of Basic & Structural, casting) 0.81%
Top 20 Industry Exposures 53.71%

As at 31st March,
Top 20 Industry Sectors 2022
(%)
Real Estate Activities - Builders and Contractors 15.48%
Lease Rental Discounting 4.53%
Energy Renewable 4.05%
Construction/Maintenance of Roads 3.82%
Hotels, Motels and Resorts 3.36%
Education 3.36%
Textiles, Readymade Garments, Apparels - Spinning, Mfg and Trading 3.23%
NBFCs 3.13%
Transportation, logistics & allied services 2.54%
Food & Beverages 2.50%
Other Trade (Wholesale/ Retail) 2.10%
Domestic Commercial Banks 1.87%
Automobiles & Ancillaries 1.81%
Hospital & medical business 1.46%
Brokers / Traders - Shares, securities 1.32%
Energy Trans & Distr 1.14%
Pharmaceuticals & intermediates 1.14%
Chemical & related products 1.12%
Electricals & Electronics equipments 1.03%
Mining and Quarrying 1.03%
Top 20 Industry Exposures 60.01%
Note:
1. Industry Sectors tagging on loans is done by the Company’s management as per internal MIS which have been relied
upon by the auditors.
(d) Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that
the Company might be unable to 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 circumstances.
The Company manages its liquidity requirement by analysing the maturity pattern of Company’s cash flows of financial
assets and financial liabilities. The Asset Liability Management of the Company is periodically reviewed by its Asset Liability
Management Committee.
The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated in the
event of an unforeseen interruption in cash flow. The Company also has lines of credit that it can access to meet liquidity
needs. In accordance with the Company’s policy, the liquidity position is assessed under a variety of scenarios, giving due
consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets
consist of cash. The ratios during the year were, as follows:


Advances to borrowings ratios

(₹ in Lakhs)
Particulars 2023 2022
Year-end 111.42% 116.57%
Maximum 114.84% 118.99%
Minimum 111.42% 116.57%
Average 113.08% 118.16%
Borrowings from banks and financial institutions and issue of debentures are considered as important sources of funds
to finance lending to customers. They are monitored using the advances to borrowings ratio, which compares loans and
advances to customers as a percentage of secured and unsecured borrowings.
Analysis of financial liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company’s financial liabilities:

(₹ in Lakhs)
Particulars Within 12 months After 12 months Total
Derivative Financial Liability 27.74 1,341.50 1,369.24
Trade Payables (refer note 1 below)
- Micro and small enterprises 288.81 - 288.81
- Other than micro and small enterprises 69,467.65 - 69,467.65
Debt securities (refer note 2 below) 10,48,893.02 17,72,258.94 28,21,151.96
Borrowings (other than debt securities) 17,06,994.67 34,85,831.54 51,92,826.21
Subordinated liabilities 30,606.83 3,11,737.40 3,42,344.23
Lease liabilities 4,502.29 19,582.53 24,084.82
Other financial liabilities 68,919.82 - 68,919.82

(₹ in Lakhs)
Derivative Financial Liability 7,799.24 - 7,799.24
Trade Payables (refer note 1 below)
- Micro and small enterprises 696.87 - 696.87
- Other than micro and small enterprises 23,524.76 - 23,524.76
Debt securities (refer note 2 below) 6,53,366.24 10,31,194.25 16,84,560.49
Borrowings (other than debt securities) 13,13,012.19 17,61,219.85 30,74,232.04
Subordinated liabilities 24,513.02 3,42,344.23 3,66,857.25
Lease liabilities 3,009.34 12,713.64 15,722.98
Other financial liabilities 47,013.29 - 47,013.29
Notes :
1. Trade payables is based on the estimate of payment.

2. Commercial papers shown are net of unamortised discounting charges ₹ 10,648.62 lakhs (31st March, 2022 ₹ 4,471.02
lakhs).

The table below shows the contractual expiry by maturity of the Corporate guarantees and Letter of comfort
given by the Company on behalf of clients.
(₹ in Lakhs)
Corporate guarantees and Letter of comfort given by the Company on 4,332.94 3,675.00 8,007.94
behalf of clients
Total 4,332.94 3,675.00 8,007.94

(₹ in Lakhs)
Corporate guarantees and Letter of comfort given by the Company on 11,501.18 32.66 11,533.84
behalf of clients
Total 11,501.18 32.66 11,533.84
NOTE 53: DISCLOSURE IN TERMS OF DIRECTION 19 OF NON-BANKING FINANCIAL COMPANY -

SYSTEMICALLY IMPORTANT NON-DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE
BANK OF INDIA) DIRECTIONS, 2016.
(₹ in Lakhs)
Sr
No.
Amount Amount Amount Amount
Liabilities side :
outstanding overdue outstanding overdue
1) Loans and advances availed by the NBFCs inclusive of interest
accrued thereon but not paid:
(a) Debentures : Secured (including interest accrued but not due of 16,75,533.77 - 12,53,636.68 -
₹ 61,458.93 lakhs; 31st March, 2022 : ₹ ₹ 61,303.24 lakhs)
: Unsecured (including interest accrued but not due of ₹ 700.36 16,100.36 - 10,960.04 -
lakhs ; 31st March, 2022 : ₹ 460.04 lakhs) (other than falling within
the meaning of public deposits) (see note 1)
(b) Term Loans, External commercial borrowings and Working Capital 42,60,288.03 - 25,60,604.67 -
Demand loans (including interest accrued but not due of ₹ 6,267.57
lakhs ; 31st March, 2022 : ₹ 1,080.15 lakhs)
(c) Inter corporate Loans and borrowing (including interest accrued but 56,966.13 - - -
not due of ₹ 921.13 lakhs ; 31st March, 2022 : Nil)
(d) Commercial Paper (net of unamortised discount of ₹ 10,648.62 6,61,851.38 - 3,13,528.98 -
lakhs; 31st March, 2022 : ₹ 4,471.02 lakhs)
(e) Subordinate Debt (including interest accrued but not due of ₹ 2,23,867.32 - 2,27,622.01 -
9,467.32 lakhs; 31st March, 2022 : ₹ 9,722.01 lakhs)(see note 2)
(f) Perpetual Debts (including interest accrued but not due of ₹ 1,123.13 21,123.13 - 21,111.98 -
lakhs; 31st March, 2022 : ₹ 1,111.98 lakhs)(see note 2)
(g) Other Loans (Cash Credit, Book overdraft & CBLO) (including interest 1,61,343.30 - 2,11,110.37 -
accrued but not due of ₹ 3.84 lakhs; 31st March, 2022 : ₹ Nil)
(see note 2)
Total 70,77,073.42 - 45,98,574.73 -
Note :
1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank of
India) Directions, 1998.
2. During the year ended 31st March, 2023 the Company has raised ₹ Nil (31st March, 2022 ₹ Nil) through perpetual debt
instrument. Closing balance as on 31st March, 2023 is ₹ 21,123.13 lakhs (31st March, 2022 ₹ 21,111.98 lakhs), the same
is 1.90% (31st March, 2022 2.18%) of tier I Capital as on 31st March, 2023.


Sr
No.
Amount Amount
Assets side :
outstanding outstanding
2) Break-up of Loans and Advances including bills receivables (other than those included in
(4) below) :
(a) Secured : 51,21,307.52 41,14,204.21
(b) Unsecured : 29,23,971.29 13,54,024.34
(includes those in nature of loans and excludes Advances Recoverable in cash or kind or for value to
be received, Advance Payment of Taxes and Other Deposits)
80,45,278.81 54,68,228.55
3) Break up of Leased Assets and stock on hire and hypothecation loans counting towards
AFC activities :
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease - -
(b) Operating lease - -
(ii) Stock on hire including hire charges under sundry debtors:
(a) Assets on hire - -
(b) Repossessed Assets - -
(iii) Other loans counting towards AFC activities
(a) Loans where assets have been repossessed - -
(b) Loans other than (a) above - -
Total 80,45,278.81 54,68,228.55
4) Break-up of Investments:
Short Term investments:
1. Quoted :
(i) Shares : (a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds 520.91 -
(iv) Government Securities - -
(v) Others - -
2. Unquoted :
(i) Shares : (a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds 92,913.05 1,10,260.07
(iii) Units of mutual funds - -
(iv) Government Securities 2,47,031.28 47,137.87
(v) Others (Alternate Fund) 1,050.80 -
Long Term investments :
1. Quoted :
(i) Shares : (a) Equity 34.82 45.17
(b) Preference 3,500.00 3,500.00
(v) Others (Please specify) - -

Sr
No.
Amount Amount
Assets side :
outstanding outstanding
2. Unquoted :
(i) Shares : (a) Equity 308.73 235.26
(b) Preference - -
(v) Others (Securiy Receipts and Alternate Fund) 24,910.03 8,225.19
Total 3,70,269.62 1,69,403.56

Category
Secured Unsecured Total Secured Unsecured Total
5) Borrower group-wise classification of
assets financed as in (2) and (3) above :
1) Related Parties
(a) Subsidiaries - - - - - -
(b) Companies in the same group 26,109.16 - 26,109.16 4,356.58 - 4,356.58
(c) Other related parties - - - - - -
2) Other than related parties
(a) Companies in the same group - - - - - -
(b) Other 50,95,198.36 29,23,971.29 80,19,169.65 41,09,847.63 13,54,024.34 54,63,871.97
Total 51,21,307.52 29,23,971.29 80,45,278.81 41,14,204.21 13,54,024.34 54,68,228.55
Category Market Value / Book Value (Net of Market Value /

Book Value
Break up or fair Provisions) Break up or fair
(Net of Provisions)
value or NAV (see note 1) value or NAV
6) Investor group-wise classification of all investments
(current and long term) in shares and securities (both
quoted and unquoted):
1) Related Parties
(a) Subsidiaries - - - -
(b) Companies in the same group 22,535.12 22,535.12 - -
(c) Other related parties - - - -
2) Other than related parties
(a) Companies in the same group 829.64 829.64 337.30 336.32
(b) Other 3,46,904.86 3,46,904.86 1,69,066.26 1,67,473.92
Total 3,70,269.62 3,70,269.62 1,69,403.56 1,67,810.24
Note:
1. Book value represents carrying value of investment.


Category 31st March, 2023 31st March, 2022

7) Other information :
(i) Gross Non-Performing Assets (Stage 3) :
(a) Related parties - -
(b) Other than related parties 250,709.87 195,603.41
(ii) Net Non-Performing Assets (Stage 3) :
(a) Related parties - -
(b) Other than related parties 134,915.46 118,314.77
(iii) Assets acquired in satisfaction of debt : - -
The above amounts are including Interest Accrued.

a) Capital Risk Adequacy Ratio (CRAR)
Sr.
No.
(i) CRAR (%) 16.38 21.77
(ii) CRAR - Tier I capital (%) 13.92 18.07
(iii) CRAR - Tier II Capital (%) 2.46 3.70
(iv) Tier I capital 11,13,219.98 9,68,727.75
(v) Tier II capital 1,96,679.02 1,98,090.07
(vi) Amount of subordinated debt raised as Tier-II capital 2,23,867.32 2,27,622.01
(vii) Amount raised by issue of Perpetual Debt Instruments 21,123.13 21,111.98
Notes :
1) Amount of Subordinated debt and Perpetual Debt shown above are outstanding balances (including interest accrued thereon)
as on 31st March, 2023 and 31st March, 2022.
b) Derivatives
Forward Rate Agreement / Interest Rate Swap (also includes currency interest rate swaps)
Sr.
No.
(i) The notional principal of swap agreements 1,93,148.62 1,71,375.26
(ii) Losses which would be incurred if counterparties failed to fulfil their obligations under the agreements 83.64 19.02
(iii) Collateral required by the applicable NBFC upon entering into swaps - -
(iv) Concentration of credit risk arising from the swaps - -
(v) The fair value of the swap book (1,285.60) (7,780.22)
Exchange Traded Interest Rate (IR) Derivatives: The Company has not traded in Exchange Traded Interest Rate Derivative
during the financial year ended 31st March,2023 (Previous year: NIL).
Disclosures on Risk Exposure in Derivatives

Qualitative Disclosure - The Company enters into derivative agreements to mitigate the foreign exchange risk and interest rate
risk pertaining to its external commercial borrowings & Non convertible debenture. Detailed description of the policies and risk
mitigation strategies are also disclosed in Note 4.1(viii), Note 8 and Note 52 to the financial statements.

Quantitative Disclosures -
(₹ in Lakhs)
Sr.
Particulars Currency Interest Rate Currency Interest Rate
No.
Derivatives Derivatives Derivatives Derivatives
(i) Derivatives (Notional Principal Amount) for Hedging - 1,93,148.62 7.72 1,71,367.54
(ii) Marked to Market Positions
(a) Asset (+) - 83.64 - 19.02
(b) Liability (-) - (1,369.24) (0.52) (7,798.72)
(iii) Credit Exposure - - - -
(iv) Unhedged Exposures - - - -
Note: The above disclosure includes non convertible debentures in Indian currency at variable interest rate amounting to
₹ 10,000 lakhs, which is hedged.
c) Unsecured Advances
(₹ in Lakhs)
Sr.
No.
(i) Unsecured Advances (Inclusive of doubtful advances) 29,23,971.29 13,54,024.34
Out of the above amount, advances for which intangible securities such as charge over the rights, licences, authority, etc. are
taken as collateral : NIL
d) Exposures
d. i) Exposure to Real Estate Sector
(₹ in Lakhs)
Category 31st March, 2023 31st March, 2022
Direct exposure
i) Residential Mortgages (see note) - -
Lending fully secured by mortgages on residential property that is or will be occupied by the
borrower or that is rented Exposure would also include non-fund based (NFB) limits.
ii) Commercial Real Estate 21,85,344.20 15,48,981.87
Lending secured by mortgages on commercial real estates
(office buildings, retail space, multipurpose commercial premises, multi-family residential
buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.)
Exposure would also include non-fund based (NFB) limits
iii) Investments in Mortgage Backed Securities (MBS) and other securitised exposures
a. Residential - -
b. Commercial Real Estate - -
Indirect exposure
i) Fund based and non-fund-based exposures on National Housing Bank and Housing Finance Companies. - -
Total Exposure to Real Estate Sector 21,85,344.20 15,48,981.87
Note : The above excludes loan against property which are not for the purpose of acquiring residential property that is or will be
occupied by the borrower or that is rented.


d. ii) Exposure to Capital Market

(₹ in Lakhs)
i) Direct investment in equity shares, convertible bonds, convertible debentures and units of equity- 34.82 45.17
oriented mutual funds the corpus of which is not exclusively invested in corporate debt; (see note)
(ii) Advances against shares / bonds / debentures or other securities or on clean basis to individuals 45,540.16 37,392.88
for investment in shares (including IPOs / ESOPs), convertible bonds, convertible debentures, and
units of equity-oriented mutual funds;
(iii) Advances for any other purposes where shares or convertible bonds or convertible debentures or 2,41,871.36 2,50,602.33
units of equity oriented mutual funds are taken as primary security;
(iv) Advances for any other purposes to the extent secured by the collateral security of shares or - -
convertible bonds or convertible debentures or units of equity oriented mutual funds i.e. where the
primary security other than shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds does not fully cover the advances;
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers 392.77 1,157.57
and market makers;
(vi) Loans sanctioned to corporates against the security of shares / bonds / debentures or other - 58,108.53
securities or on clean basis for meeting promoter's contribution to the equity of new companies in
anticipation of raising resources.
(vii) Bridge loans to companies against expected equity flows / issues; - -
(viii) Underwriting commitments taken up by the NBFCs in respect of primary issue of shares or - -
convertible bonds or convertible debentures or units of equity oriented mutual funds
(ix) Financing to stockbrokers for margin trading - -
(x) All exposures to Alternative Investment Funds:
(i) Category I - -
(ii) Category II 24,643.33 8,225.19
(iii) Category III - -
Total Exposure to Capital Market 3,12,482.44 3,55,531.67
Note : The amount comprises investment in listed securities only.

d. iii) Asset Liability Management
208
Maturity pattern of certain items of Assets and Liabilities
(₹ in Lakhs)
Over 1 Over 2 Over 3 Over 3
Over 6 Over 1 year
8 to 14 15 day to month and months months years and Over 5
Particulars 1 to 7 days months and and up to 3 Total
days 30 days up to 2 and up to 3 and up to 6 up to 5 years
up to 1 year years
months months months years
Deposits 713.67 - - - - 17.83 31.27 1,948.36 400.20 663.08 3,774.41
Advances** 2,03,564.26 26,629.00 83,161.55 2,18,979.94 2,05,818.85 4,68,292.18 12,10,666.86 21,07,819.22 12,45,536.60 21,14,481.64 78,84,950.10
Investments 2,47,552.19 - - - 92,913.05 - 1,050.80 1,057.41 - 27,696.17 3,70,269.62
Borrowings* 1,08,906.97 1,02,666.67 2,15,095.68 6,00,266.34 3,07,713.98 4,54,433.04 6,98,767.46 27,39,435.07 13,19,718.20 5,30,070.01 70,77,073.42
Foreign Currency - - - - - - - - - -

Assets
Foreign Currency - - - - - 95.92 2,259.84 192,666.64 - - 195,022.40
Liabilities (also
included
in borrowings above)

(₹ in Lakhs)
Over 1 Over 2 Over 3 Over 3
Over 6 Over 1 year
8 to 14 15 day to month and months months years and Over 5
Particulars 1 to 7 days months and and up to 3 Total
days 30 days up to 2 and up to 3 and up to 6 up to 5 years
up to 1 year years
months months months years
Deposits - 1,266.58 17.90 37.75 - 36.49 39.23 190.63 861.98 322.03 2,772.59
Advances** 1,36,006.59 17,338.91 78,363.63 1,89,721.39 1,02,377.40 2,34,242.14 6,22,369.59 14,72,617.02 8,60,946.05 16,46,763.30 53,60,746.02
Investments - 47,137.87 - - 1,12,865.41 - 2,862.70 2,084.13 4,070.98 382.47 1,69,403.56
Borrowings* 1,03,399.97 1,96,105.49 3,02,290.61 1,59,004.72 1,41,558.02 3,57,615.08 5,68,510.59 15,55,508.37 6,24,188.68 5,90,393.19 45,98,574.73
Foreign Currency - - - - - - - - - - -
Assets
Foreign Currency - - - 738.91 - 71,298.53 68,258.61 - - - 1,40,296.05
Liabilities
(also included in
borrowings above)
Note: Classification of assets and liabilities under the different maturity buckets is based on the same estimates and assumptions as used by the
Company for Compiling the return submitted to RBI.
* Commercial papers shown net of unamortised discounting charges ₹ 10,648.62 lakhs (31st March, 2022 ₹ 4,471.02 lakhs).
** a) Overdue Receivable on account of Corporate Finance Activities have been slotted in respective time bucket category as per instructions
contained in Appendix 1 of Guidelines for Assets Liabilities Management (ALM) system in NBFC.
b) Advances includes Loan and Advances in the nature of Loans (net of ECL provisions) and excludes deposits.
d. iv) The Company has no specific program for financing its parent company products. However, in its general lending business, the Company
may have funded some entities which may have been customer(s) of its ultimate parent company: Grasim Industries Limited. Single
Borrower Limit (SGL) or Group Borrower Limit (GBL) did not exceed the limits prescribed under the prudential norms.

NOTE 55: DISCLOSURE ON LIQUIDITY RISK UNDER RBI CIRCULAR NO. RBI/2019-20/88 DOR.NBFC (PD) CC.
NO.102/03.10.001/2019-20 DATED 04TH NOVEMBER, 2019 ON LIQUIDITY RISK MANAGEMENT FRAMEWORK
FOR NON-BANKING FINANCIAL COMPANIES AND CORE INVESTMENT COMPANIES AS ON 31ST MARCH, 2023.
i) Funding Concentration based on significant counterparty (both deposits and borrowings)
Sr. Amount % of total % of Total
No of Significant Counterparties
No (see note 2) Deposits Liabilities
1 19 53,56,021.13 NA 73.68%

Sr. Amount % of total % of Total
No of Significant Counterparties
No (see note 2) Deposits Liabilities
1 22 33,68,770.36 NA 71.51%
Notes:
1. A “Significant counterparty” is defined as a single counterparty or group of connected or affiliated counterparties
accounting in aggregate for more than 1% of the NBFCNDSI’s, NBFC-Ds total liabilities and 10% for other non-deposit
taking NBFCs.
2. The amount represents the outstanding principals as of the reporting date.
ii) Top 20 large deposits – Not Applicable for 31st March, 2023 & 31st March, 2022
iii) Top 10 Borrowings
Amount (see note 1) % of Total Liabilities
44,72,669.95 61.53%

Amount (see note 1) % of Total Liabilities
24,31,255.26 51.61%
1. The amount represents the outstanding principals as of the reporting date.

iv) Funding Concentration based on significant instrument/product

Sr. Name of the instrument Amount % of Total Amount % of Total
(see note 3) Liabilities (see note 3) Liabilities
1 Term Loan 37,34,866.82 51.38% 21,00,005.16 44.58%
2 Non Convertible Debentures (secured) 16,75,533.77 23.05% 12,53,636.68 26.61%
3 Commercial Paper 6,61,851.38 9.10% 3,13,528.98 6.66%
4 Working capital / short term facilities 4,47,432.54 6.15% 2,45,162.11 5.20%
5 External Commercial Borrowings 1,95,022.40 2.68% 2,41,699.63 5.13%
6 Subordinate Debt 2,23,867.32 3.08% 2,27,622.01 4.83%
Total 69,38,574.23 95.45% 43,81,654.57 93.01%
Note:
1. A “Significant instrument/product” is defined as a single counterparty or group of connected or affiliated counterparties
accounting in aggregate for more than 1% of the NBFCNDSI’s, NBFC-Ds total liabilities and 10% for other non-deposit
taking NBFCs.
2. Above table does not includes Book overdraft.
3. Amount includes accrued interest.
v) Stock Ratios
Sr As at As at
Particulars
No 31st March, 2023 31st March, 2022
1 Commercial Papers to Total Liabilities 9.10% 6.66%
2 Commercial Papers to Total Assets 7.87% 5.50%
3 NCDs (Original Maturity < 1 year) to Total Liabilities Nil Nil
4 NCDs (original Maturity < 1 year) to Total Assets Nil Nil
5 Other Short Term Liabilities** to Total Liabilities 27.45% 34.03%
6 Other Short Term Liabilities** to Total Assets 23.72% 28.14%
** Other Short Term Liabilities excludes Commercial Paper as considered in 1 & 2.
vi) Institutional set-up for liquidity risk management:

The Company has an Asset Liability Management Committee (ALCO), a management level committee to handle liquidity risk
management. The ALCO meetings are held at periodic intervals. At the apex level, the Risk Committee (RC), a sub-committee
of the Board of Directors of the Company, oversees the liquidity risk management. The RC subsequently updates the Board
of Directors on the same.

NOTE 56: LIQUIDITY COVERAGE RATIO : THE DAILY AVERAGE LCR OF THE COMPANY FOR THE QUARTER ENDED 31ST
MARCH, 2023 WAS 153% VIS-À-VIS 71% FOR THE QUARTER ENDED 31ST MARCH, 2022. THE CALCULATION OF THE LAST
FOUR QUARTER AS BELOW.
A)
(₹ in Lakh)
Quarter ended Quarter ended Quarter ended Quarter ended
31st March, 2023 31st December, 2022 30st September, 2022 30st June, 2022
Sr.
Particulars Total Total Total Total
No. Total Weighted Total Weighted Total Weighted Total Weighted
Unweighted Unweighted Unweighted Unweighted
(Average) (Average) (Average) (Average)
Total High Quality Liquid
Assets (HQLA)
1 Total High Quality Liquid Assets 4,13,207.80 4,13,207.80 2,26,268.86 2,18,951.17 1,44,603.13 1,24,621.21 1,06,902.57 1,06,902.57
(HQLA)
Cash Outflows
2 Deposits (for deposit taking - - - - - - - -
companies)
3 Unsecured wholesale funding 2,14,200.85 2,46,330.98 1,96,253.20 2,25,691.18 1,29,870.14 1,49,350.66 1,51,544.34 1,74,275.99
4 Secured wholesale funding 1,32,207.36 1,52,038.47 74,802.26 86,022.60 1,01,313.96 1,16,511.05 82,417.90 94,780.59
5 Additional requirements, of which - - - - - - - -
(i) Outflows related to - - - - - - - -
derivative exposures and other
collateral requirements
(ii) Outflows related to loss of - - - - - - - -
funding on debt products
(iii) Credit and liquidity facilities - - - - - - - -
6 Other contractual funding 4,28,236.78 4,92,472.30 38,899.43 44,734.35 2,32,968.01 2,67,913.21 1,62,799.35 1,87,219.25
obligations
7 Other contingent funding 32,009.77 36,811.24 3,00,299.18 3,45,344.05 28,139.31 32,360.20 39,475.79 45,397.16
obligations
8 Total Cash Outflows 8,06,654.76 9,27,652.99 6,10,254.07 7,01,792.18 4,92,291.42 5,66,135.12 4,36,237.38 5,01,672.99
Cash Inflow
OVERVIEW
9 Secured lending - - - - - - - -
CORPORATE
10 Inflows from fully performing 2,76,156.39 2,07,117.29 2,31,165.23 1,73,373.93 2,13,769.21 1,60,326.91 1,92,577.78 1,44,433.34
exposures
11 Other cash inflows 6,00,726.65 4,50,544.99 6,01,906.56 4,51,429.92 5,37,748.44 4,03,311.33 5,12,296.48 3,84,222.36
REPORTS
12 Total Cash Inflows 8,76,883.04 6,57,662.28 8,33,071.79 6,24,803.85 7,51,517.65 5,63,638.24 7,04,874.26 5,28,655.70
STATUTORY
Total Adjusted Value

13 Total HQLA 4,13,207.80 4,13,207.80 2,26,268.86 2,18,951.17 1,44,603.13 1,24,621.21 1,06,902.57 1,06,902.57

14 Total Net Cash Outflows (70,228.28) 2,69,990.71 (2,22,817.72) 1,75,448.04 (2,59,226.24) 1,41,533.78 (2,68,636.88) 1,25,418.25
15 Liquidity Coverage Ratio (%) 153% 125% 88% 85%
FINANCIAL
STATEMENTS
211
212
31st March, 2022 31st December, 2021 30th September, 2021 30th June, 2021
Sr.
Particulars Total Total Total Total
No. Total Weighted Total Weighted Total Weighted Total Weighted
Unweighted Unweighted Unweighted Unweighted
Total High Quality Liquid
Assets (HQLA)
1 Total High Quality Liquid Assets 1,74,510.91 1,74,510.91 2,19,542.96 2,19,542.96 1,61,177.91 1,61,177.91 1,07,974.74 1,07,974.74
(HQLA)
Cash Outflows
2 Deposits (for deposit taking - - - - - - - -
companies)
3 Unsecured wholesale funding 1,03,177.84 1,18,654.52 1,21,401.11 1,39,611.28 2,53,170.57 2,91,146.15 1,13,901.40 1,30,986.61
4 Secured wholesale funding 1,05,875.79 1,21,757.16 53,645.45 61,692.27 76,193.25 87,622.24 1,11,961.72 1,28,755.98

5 Additional requirements, of which - - - - - - - -
(i) Outflows related to derivative - - - - - - - -
exposures and other collateral
requirements
(ii) Outflows related to loss of - - - - - - - -
funding on debt products
(iii) Credit and liquidity facilities - - - - - - - -
6 Other contractual funding 1,40,420.70 1,61,483.81 3,78,963.31 4,35,807.80 1,85,389.56 2,13,198.00 1,33,486.52 1,53,509.50
obligations
7 Other contingent funding 1,44,683.95 1,66,386.54 15,809.49 18,180.92 20,072.97 23,083.91 390.65 449.25
obligations
8 Total Cash Outflows 4,94,158.27 5,68,282.03 5,69,819.36 6,55,292.27 5,34,826.35 6,15,050.30 3,59,740.29 4,13,701.33
Cash Inflow
9 Secured lending - - - - - - - -
10 Inflows from fully performing 1,87,393.40 1,40,545.05 3,16,047.14 2,37,035.36 3,62,216.53 2,71,662.40 2,18,853.67 1,64,140.25
exposures
11 Other cash inflows 2,42,426.23 1,81,819.67 1,42,612.90 1,06,959.68 1,67,079.37 1,25,309.52 3,04,666.67 2,16,119.32
12 Total Cash Inflows 4,29,819.63 3,22,364.72 4,58,660.04 3,43,995.04 5,29,295.90 3,96,971.92 5,23,520.34 3,80,259.57
Total Adjusted Value
13 Total HQLA 1,74,510.91 1,74,510.91 2,19,542.96 2,19,542.96 1,61,177.91 1,61,177.91 1,07,974.74 1,07,974.74
14 Total Net Cash Outflows 64,338.64 2,45,917.29 1,11,159.32 3,11,297.24 5,530.45 2,18,078.38 (1,63,780.05) 1,03,425.33
15 Liquidity Coverage Ratio (%) 71% 71% 74% 104%
Notes:
1. In computing the above information, certain estimates/ assumptions have been made by the Company’s management.
2. Unweighted values have been calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows).
3. Weighted values have been calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow.
4. The calculation has been arrived based on average daily computation.

B) Qualitative Disclosure
a) The main drivers of their LCR results and the evolution of the contribution of inputs to the LCR’s calculation over
time : RBI had introduced the liquidity coverage ratio (LCR) to ensure that NBFC has an adequate stock of unencumbered
high-quality liquid assets (HQLA) to survive a significant liquidity stress lasting for a period of 30 days. LCR is defined as
a ratio of HQLA to the total net cash outflows estimated for the next 30 calendar days. At March 31, 2023, the applicable
minimum LCR required to be maintained by NBFC is 70%.
The Company has an Asset Liability Management Committee (ALCO), a management level committee to handle liquidity
risk. The ALCO meets at periodic intervals. At the apex level, the Risk Committee (RC), a sub-committee of the Board of
Directors of the Company, oversees the liquidity risk management. The RC subsequently updates the Board of Directors on
the same.
b) Intra-period changes as well as changes over time: The details for the four quarter ended 30 th June 2022, 30 th
September 2022, 31st December 2022 and year ended 31st March 2023 are disclosed in 56-A).
c) The composition of HQLAs:

(₹ in Lakh)
Quarter ended Quarter ended Quarter ended
Quarter ended 30th June, 2022
High-Quality Liquid 31st March, 2023 31st December, 2022 30th September, 2022
Assets (HQLA) Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Amount Amount Amount Amount Amount Amount Amount Amount
Total 4,13,207.80 4,13,207.80 2,26,268.86 2,18,951.17 1,44,603.13 1,24,621.21 1,06,902.57 1,06,902.57
Cash & callable FDs 54,044.41 54,044.41 38,365.16 38,365.16 31,481.29 31,481.29 32,054.34 32,054.34
G-sec/T-bills 1,55,103.78 1,55,103.78 51,395.41 51,395.41 39,202.31 39,202.31 45,903.07 45,903.07
Others 2,04,059.61 2,04,059.61 1,36,508.29 1,29,190.61 73,919.54 53,937.62 28,945.16 28,945.16
(₹ in Lakh)
High-Quality Liquid 31st March, 2022 31st December, 2021 30th September, 2021 30th June, 2021
Assets (HQLA) Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Amount Amount Amount Amount Amount Amount Amount Amount
Total 1,74,510.91 1,74,510.91 2,19,542.96 2,19,542.96 1,61,177.91 1,61,177.91 1,07,974.74 1,07,974.74
Cash & callable FDs 1,00,538.80 1,00,538.80 1,75,271.60 1,75,271.60 1,26,357.83 1,26,357.83 88,122.98 88,122.98
G-sec/T-bills 73,972.11 73,972.11 44,271.36 44,271.36 34,820.08 34,820.08 19,851.75 19,851.75
Others - - - - - - - -
d) Concentration of funding sources

Name of the Source % of Total Liabilities
Bank 72.67%
Mutual Fund 8.12%
Insurance 6.79%
PF & Others 6.50%
Corporates 4.47%
FII 1.45%
Total 100.00%


Name of the Source % of Total Liabilities
Bank 68.23%
Mutual Fund 10.20%
Insurance 10.09%
PF & Others 7.39%
Corporates 1.79%
FII 2.30%
Total 100.00%
e) Currency mismatch in the LCR : The Company has taken foreign currency borrowings. The Company has entered into
cross currency swap and forward contracts to hedge the foreign currency risk on such borrowing.
f) Other inflows and outflows in the LCR calculation that are not captured in the LCR common template but which
the institution considers to be relevant for its liquidity profile: All inflows/ outflows considered relevant has been
considered for LCR calculation.
NOTE 57: Disclosure in terms of RBI Circular - RBI/2018-19/100 DBR.No.BP.BC.18/21.04.048/2018-19 dated 01st
January, 2019; RBI/2019-20/160 DOR.No.BP.BC.34/21.04.048/2019-20 dated 11st February, 2020 ; RBI/2020-21/17
DOR.No.BP.BC/4/21.04.048/2020-21 dated 06th August, 2020; RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-
22 dated 05th May, 2021 (for restructuring of accounts of Micro, Small and Medium Enterprises (MSME) sector–
Restructuring of Advances’ having exposure less than or equal to ₹ 25 crores).
(₹ in Lakhs)
Type of Borrower No. of accounts No. of accounts
Amount Amount
restructured restructured
MSMEs 449 50,468.86 2,422 82,593.16
NOTE 58: DISCLOSURE IN TERMS OF RBI CIRCULAR - RBI/2020-21/16 DOR.NO.BP.BC/3/21.04.048/2020-21

DATED 06TH AUGUST, 2020; RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 DATED 05TH MAY, 2021.
For the half year ended 31st March, 2023
(₹ in Lakhs)
(A) (B) (C) (D) (E)
Exposure to accounts
Exposure to accounts
classified as Standard
classified as Standard
consequent to Of (A), aggregate
Type of borrower Of (A) amount Of (A) amount paid consequent to
implementation of debt that slipped
written off during by the borrowers implementation of
resolution plan – Position into NPA during the
the half-year during the half-year resolution plan – Position
as at the end of the half-year
as at the end of this half-
previous half-year i.e
year i.e. 31st March, 2023
30th September, 2022
Personal Loans 9,736.06 641.23 228.08 1,763.33 7,103.42
Corporate persons* 15,270.27 1,021.95 231.86 1,477.97 12,538.48
Of which MSMEs 15,270.27 1,021.95 231.86 1,477.97 12,538.48
Others 1,712.56 - - 13.54 1,699.02
Total 26,718.89 1,663.18 459.94 3,254.84 21,340.92
* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016


NOTE 59: DISCLOSURES PURSUANT TO MASTER DIRECTION — RESERVE BANK OF INDIA (TRANSFER
OF LOAN EXPOSURES) DIRECTIONS, 2021 IN TERMS OF RBI CIRCULAR RBI/DOR/2021-22/86 DOR.STR.
REC. 51/21.04.048/2021-22 DATED 24TH SEPTEMBER, 2021.
(a) (i) Details of Loans not in default that are acquired during the year ended 31st March, 2023
Count of Loan Account acquired 1,24,878
Amount of Loan Account acquired (₹ In lakhs) 3,22,220.15
Weighted Average Maturity (Residual maturity) (In Month) 104.00
Weighted Average Holding period (Up to date of acquisition) 12.00
Retention of beneficial economic interest (MRR of assignor)* 7.62%
Coverage of tangible security coverage* 72.72%
Rating wise distribution of loans acquired by value
A- 10.85%
A 11.79%
A+ 0.99%
AA 6.20%
A(SO) 8.26%
A+(SO) 6.82%
BBB- 3.03%
BBB+ 2.54%
Unrated 49.52%
* Ratio is computed basis weighted average of loans acquired.
(a) (ii) Details of Loans not in default that are transferred during the year ended 31st March, 2023:
Count of Loan Account transferred 1
Amount of Loan Account transferred (₹in lakhs) 7,444.00
Weighted Average Maturity (Residual maturity) 127.00
Weighted Average Holding period (Up to date of acquisition) 22.00
Retention of beneficial economic interest 0.00%
Coverage of tangible security coverage 100%
Rating-wise distribution of rated loans
A+ 100%
(b) Details of stressed loans transferred during the year ended 31st March, 2023:
To permitted To other
Partculars To ARCs
transferees transferees
No. of accounts 2.00 - -
Aggregate principal outstanding of loans transferred (₹ In lakhs) 7,340.32 - -
Weighted average residual tenor of the loans transferred - - -
Net book value of loans transferred (at the time of transfer) 4,672.71 - -
Aggregate consideration (₹ In lakhs) 4,400.00 - -
Additional consideration realized in respect of accounts transferred in earlier years - - -
Note : Aggregate consideration includes ₹ 2,635 lakhs received from the transferee in the form of security receipt which has
been classified as investments.


i) Registration/ license/ authorization obtained from financial sector regulators:
The Company has received certificate of registration as a non-deposit taking systematically important Non-Banking Financial
Company from Reserve Bank of India dated 9th August, 2011 having COR number N-01.00500 in lieu of earlier COR number
B-13.01163 dated 12th February, 1999.
The Company is registered with AMFI for distribution of Mutual fund products having certificate number ARN-118681 valid
from 04th February, 2023 to 03rd February, 2026.
ii) Penalties levied if any during the year: Nil

iii) Investments
(₹ in Lakhs)
Value of Investments
(i) Gross Value of Investments
(a) In India 3,71,595.24 1,69,403.56
(b) Outside India, - -
(ii) Provision for Depreciation
(a) In India 1,325.62 -
(b) Outside India, - -
(iii) Net value of Investment
(a) In India 3,70,269.62 1,69,403.56
(b) Outside India - -
Movement of provisions held towards depreciation on investments.
(i) Opening balance - -
(ii) Add : Provisions made during the year 1,325.62 -
(iii) Less : Write-off / write-back of excess provisions during the year - -
(iv) Closing balance 1,325.62 -
iv) Provisions and Contingencies

(₹ in Lakhs)
Break up of ‘Provisions and Contingencies’ shown under the head Expenditure in Statement of P&L 31 March, 2023 31 March, 2022
Provisions for depreciation on Investment 1,325.62 -
Provision towards NPA* 38,505.77 18,293.08
Provision made towards Income tax 53,642.63 37,878.58
Other Provision and Contingencies (with details) - -
Provision for Standard Assets** 14,340.42 (12,929.21)
*This does not include provision created and written off during the year.
**Represents impairment loss allowance on stage 1 and stage 2 loan assets.
v) Concentration of Advances
(₹ in Lakhs)
Total Advances to twenty largest borrowers (including interest accrued) 5,53,363.93 4,79,174.37
Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 6.88% 8.76%


vi) Concentration of Exposures

(₹ in Lakhs)
Total Exposure to twenty largest borrowers / customers (including interest accrued) 5,58,058.06 4,82,844.79
Percentage of Exposures to twenty largest borrowers / customers to Total Exposure of the NBFC on 6.63% 8.56%
borrowers / customers
vii) Concentration of NPAs

(₹ in Lakhs)
Total Exposure to top four NPA (Stage 3) accounts (including interest accrued) 47,189.91 45,614.05
viii) Sector-wise NPAs (Stage 3)
Sr Percentage of NPAs Percentage of NPAs

Sector (Stage 3 loans) to (Stage 3 loans) to
No.
Total Advances in Total Advances in
that sector that sector
1 Agriculture & allied activities 1.18% 5.76%
2 MSME 4.29% 4.50%
3 Corporate borrowers 3.40% 3.88%
4 Services 3.60% 3.16%
5 Unsecured working capital loans 1.99% 7.54%
6 Auto loans 0.00% 0.00%
7 Other personal loans 1.61% 1.81%
ix) Movement of NPAs (Stage 3)

(₹ in Lakhs)
(i) Net NPAs to Net Advances (%) 1.70% 2.19%
(ii) Movement of NPAs (Gross Stage 3 assets)
(a) Opening balance 1,95,603.41 1,42,247.24
(b) Additions during the year 1,16,875.72 1,18,598.55
(c) Reductions during the year (61,769.26) (65,242.38)
(d) Closing balance 2,50,709.87 1,95,603.41
(iii) Movement of Net NPAs (Net Stage 3 assets)
(a) Opening balance 1,18,314.77 83,251.68
(b) Additions during the year 59,692.84 58,909.04
(c) Reductions during the year (43,092.15) (23,845.95)
(d) Closing balance 1,34,915.46 1,18,314.77
(iv) Movement of provisions for NPAs (Stage 3 Provision)
(a) Opening balance 77,288.64 58,995.56
(b) Provisions made during the year 57,182.88 59,689.51
(c) Write-off / write-back of excess provisions (18,677.11) (41,396.43)
(d) Closing balance 1,15,794.41 77,288.64
Note : 1. The above amounts are including Interest Accrued.

x) Credit Rating
Instrument Credit Rating Agency 31st March, 2023 31st March, 2022
Commercial Paper ICRA Limited [ICRA] A1+ [ICRA] A1+
India Ratings & Research Private Limited IND A1+ IND A1+
Non Convertible Debentures (NCD) ICRA Limited [ICRA] AAA Stable [ICRA] AAA Stable
India Ratings & Research Private Limited IND AAA Stable IND AAA Stable
Sub Debt CARE Limited CARE AAA Stable CARE AAA Stable
ICRA Limited [ICRA] AAA Stable [ICRA] AAA Stable
Unsecured NCD ICRA Limited [ICRA] AAA Stable [ICRA] AAA Stable
Perpetual Debt ICRA Limited [ICRA] AA+ Stable [ICRA] AA+ Stable
India Ratings & Research Private Limited IND AA+ Stable IND AA+ Stable
Principal Protected Market Linked India Ratings & Research Private Limited IND PP-MLD AAA Stable IND PP-MLD AAA Stable
Debenture
Public Issue of NCDs ICRA Limited [ICRA] AAA Stable [ICRA] AAA Stable
Long Term Bank Loans ICRA Limited [ICRA] A1+ / [ICRA] AAA [ICRA] A1+ / [ICRA] AAA
Short Term Bank Loans ICRA Limited [ICRA] A1+ / [ICRA] AAA [ICRA] A1+ / [ICRA] AAA
xi) Customer Complaints

Sr.
No.
(a) No. of complaints pending at the beginning of the year 105 73
(b) No. of complaints received during the year 4,456 2,666
(c) No. of complaints redressed during the year 4,351 2,634
(d) No. of complaints pending at the end of the year 210 105
Note: The above information has been extracted from complaint management system (CMS).
xii) During FY 2023, there were no draw down from Reserves (Previous year: Nil)
xiii) Overseas assets (for those with joint ventures and subsidiaries abroad): Nil (Previous year: Nil)
xiv) Off Balance Sheet SPVs sponsored: Nil (Previous year: Nil)
xv) Frauds committed against the Company:
(₹ in Lakhs)
No. of cases of fraud which occurred during the year 25 13
Amount involved (₹) 192.21 66.09
Amount recovered (₹) 6.00 12.45
Amount provided/loss (₹) 126.67 55.53
xvi) The disclosures given in the above notes pursuant to RBI Notification are only to the extent they are applicable to the Company.


NOTE 61: DISCLOSURE PURSUANT TO RBI NOTIFICATION NO. DOR (NBFC).CC.PD.NO.109/22.10.106/2019-

20 DATED MARCH, 13TH, 2020.
(₹ in Lakhs)
Loss Difference
Asset Gross Carrying Allowances Provisions between
Net Carrying
Asset Classification as per RBI Norms classification as Amount as per (Provisions) as required as per Ind AS 109
Amount
per Ind AS 109 Ind AS required under IRACP norms provisions and
Ind AS 109 IRACP norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)
Performing Assets
Standard Stage 1 75,67,191.38 37,273.37 75,29,918.01 34,520.92 2,752.45
Stage 2 2,08,390.31 7,018.93 2,01,371.38 4,689.25 2,329.68
Subtotal 77,75,581.69 44,292.30 77,31,289.38 39,210.17 5,082.13
Non-Performing Assets (NPA)
Substandard Stage 1 16,132.82 173.51 15,959.31 1,652.10 (1,478.59)
Stage 2 10,345.41 46.67 10,298.74 1,024.48 (977.81)
Stage 3 84,482.09 34,049.95 50,432.14 4,207.06 29,842.89
Doubtful - up to 1 year Stage 3 1,00,102.38 49,918.71 50,183.67 44,876.76 5,041.95

1 to 3 years Stage 3 42,778.44 22,374.01 20,404.43 14,421.98 7,952.03
More than 3 years Stage 3 25,981.84 10,769.24 15,212.60 13,059.05 (2,289.80)
Subtotal for doubtful 1,68,862.66 83,061.96 85,800.70 72,357.79 10,704.18
Loss Stage 3 - - - - -
Subtotal for NPA 2,79,822.98 1,17,332.09 1,62,490.89 79,241.43 38,090.67
Other items such as guarantees, loan Stage 1 8,111.85 29.89 8,081.96 3.44 26.45
commitments, etc. which are in the scope
of Ind AS 109 but not covered under current
Income Recognition, Asset Classification and
Provisioning (IRACP) norms
Stage 2 100.00 0.06 99.94 0.40 (0.34)
Stage 3 200.00 - 200.00 20.00 (20.00)
Subtotal 8,411.85 29.95 8,381.90 23.84 6.11
Stage 1 75,91,436.05 37,476.77 75,53,959.28 36,176.46 1,300.31
Total Stage 2 2,18,835.72 7,065.66 2,11,770.06 5,714.13 1,351.53
Stage 3 2,53,544.75 1,17,111.91 1,36,432.84 76,584.85 40,527.06
Total 80,63,816.52 1,61,654.34 79,02,162.18 1,18,475.44 43,178.90
Notes:
1. In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22.10.106/2019-
20 dated March, 13, 2020 on Implementation of Indian Accounting Standards, Non Banking Finance Companies (NBFCs)
are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income
Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment
allowances under Ind AS 109 made by the corporation exceeds the total provision required under IRACP (including standard
asset provisioning), as at March, 31, 2023 and accordingly, no amount is required to be transferred to impairment reserve.
2. Amounts in NPA that have been classified otherwise than as stage-3 represent loan assets that were restructured but have
not completed one year of satisfactory performance as at the reporting date.


(₹ in Lakhs)
Loss Difference
Asset Gross Carrying Allowances Provisions between
Net Carrying
Asset Classification as per RBI Norms classification as Amount as per (Provisions) as required as per Ind AS 109
Amount
per Ind AS 109 Ind AS required under IRACP norms provisions and
Ind AS 109 IRACP norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)
Performing Assets
Standard Stage 1 49,76,890.04 15,959.53 49,60,930.51 22,925.46 (6,965.93)
Stage 2 2,64,739.13 12,650.36 2,52,088.77 8,527.12 4,123.24
Subtotal 52,41,629.17 28,609.89 52,13,019.28 31,452.58 (2,842.69)
Non-Performing Assets (NPA)
Substandard Stage 1 159.10 0.91 158.19 16.55 (15.64)
Stage 2 30,836.87 1,532.29 29,304.58 3,207.03 (1,674.74)
Stage 3 1,15,316.99 44,474.08 70,842.91 9,637.86 34,836.22
Doubtful - up to 1 year Stage 3 28,171.93 11,614.73 16,557.20 12,216.03 (601.30)

1 to 3 years Stage 3 41,594.88 17,333.64 24,261.24 14,301.00 3,032.64
More than 3 years Stage 3 10,519.61 3,866.19 6,653.42 5,313.94 (1,447.75)
Subtotal for doubtful 80,286.42 32,814.56 47,471.86 31,830.97 983.59
Loss Stage 3 - - - - -
Subtotal for NPA 2,26,599.38 78,821.84 1,47,777.54 44,692.41 34,129.43
Other items such as guarantees, loan Stage 1 11,748.84 39.40 11,709.44 4.00 35.40
commitments, etc. which are in the scope
of Ind AS 109 but not covered under current
Income Recognition, Asset Classification and
Provisioning (IRACP) norms
Stage 2 200.00 11.40 188.60 0.80 10.60
Stage 3 - - - - -
Subtotal 11,948.84 50.80 11,898.04 4.80 46.00
Total Stage 1 49,88,797.98 15,999.84 49,72,798.14 22,946.01 (6,946.17)
Stage 2 2,95,776.00 14,194.05 2,81,581.95 11,734.95 2,459.10
Stage 3 1,95,603.41 77,288.64 1,18,314.77 41,468.83 35,819.81
Total 54,80,177.39 1,07,482.53 53,72,694.86 76,149.79 31,332.74


NOTE 62: INFORMATION IN RESPECT OF RESTRUCTURED ASSETS IN ACCORDANCE WITH REVIEW

OF GUIDELINES ON RESTRUCTURING OF ADVANCES BY NBFC (RBI/2013-14/459) DNBS. CO. PD. NO.
367/03.10.01/2013-14.
The following tables set forth, for the year indicated, details of loan assets subjected to restructuring:-
(₹ in Lakhs)
Type of Restructuring Under CDR Mechanism Under SME Debt Restructuring Mechanism
Sr.
no. Sub- Sub-
Asset Classification Details Standard Doubtful Loss Total Standard Doubtful Loss Total
Standard Standard
1 Restructured Accounts at 01st
April, 2022
No. of borrowers - - - - - - - - - -
Amount outstanding - - - - - - - - - -
Provision thereon - - - - - - - - - -
2 Movement in balance for account
appearing in opening balance
No. of borrowers - - - - - - - - - -
3 Fresh restructuring during the year ended
31st March, 2023
No. of borrowers - - - - - - - - - -
4 Upgradations to restructured standard
category during the year ended 31st
March, 2023
No. of borrowers - - - - - - - - - -
5 Restructured standard advances at 01st
April, 2022, which cease to attract higher
provisioning and/or additional risk weight
at 31st March, 2023 and hence need
not be shown as restructured standard
advances at 01st April, 2023
No. of borrowers - - - - - - - - - -
6 Downgradations of restructured accounts
during the year ended 31st March, 2023
No. of borrowers - - - - - - - - - -
7 Write-offs of restructured accounts
during the year ended 31st March, 2023
No. of borrowers - - - - - - - - - -
8 Restructured Accounts at 31st March, 2023
No. of borrowers - - - - - - - - - -

The following tables set forth, for the year indicated, details of loan assets subjected to restructuring :
(₹ in Lakhs)
Type of Restructuring Others Total
Sr.
no. Sub- Sub-
Standard Standard
1 Restructured Accounts at
01st April, 2022
No. of borrowers 9,899 3,715 191 - 13,805 9,899 3,715 191 - 13,805
Amount outstanding 1,15,769.53 61,505.71 1,962.01 - 1,79,237.25 1,15,769.53 61,505.71 1,962.01 - 1,79,237.25
Provision thereon 4,420.66 9,580.17 752.45 - 14,753.28 4,420.66 9,580.17 752.45 - 14,753.27
2 Movement in balance for
account appearing in opening
balance
No. of borrowers (7,070) (2,003) (170) - (9,243) (7,070) (2,003) (170) - (9,243)
Amount outstanding (41,165.85) (15,336.07) (1,920.18) - (58,422.10) (41,165.85) (15,336.07) (1,920.18) - (58,422.10)
Provision thereon 236.53 (959.40) (730.13) - (1,453.00) 236.53 (959.40) (730.13) - (1,453.00)
3 Fresh restructuring during the
year ended 31st March, 2023
No. of borrowers 1 11 - - 12 1 11 - - 12
Amount outstanding 206.21 1,247.33 - - 1,453.54 206.21 1,247.33 - - 1,453.54
Provision thereon 7.24 3.09 - - 10.33 7.24 3.09 - - 10.33
4 Upgradations to restructured
standard category during the
No. of borrowers 17 (17) - - - 17 (17) - - -
Amount outstanding 1,006.47 (1,006.47) - - - 1,006.47 (1,006.47) - - -
Provision thereon 16.49 (16.49) - - - 16.49 (16.49) - - -
5 Restructured standard advances
at 01st April, 2022, which cease
to attract higher provisioning
and/or additional risk weight at
31st March, 2023 and hence need
not be shown as restructured
standard advances at
01st April, 2023
No. of borrowers - - - - - - - - - -
6 Downgradations of restructured
accounts during the year ended
31st March, 2023
No. of borrowers (289) 107 182 - - (289) 107 182 - -
Amount outstanding (11,752.62) (2,678.04) 14,430.66 - - (11,752.62) (2,678.04) 14,430.66 - -
Provision thereon (3,224.38) (1,846.83) 5,071.21 - - (3,224.38) (1,846.83) 5,071.21 - -
7 Write-offs of restructured
31st March, 2023
No. of borrowers (1,851) (1,492) (21) - (3,364) (1,851) (1,492) (21) - (3,364)
Amount outstanding (4,305.85) (3,162.26) (41.83) - (7,509.94) (4,305.85) (3,162.26) (41.83) - (7,509.94)
Provision thereon (694.36) (1,453.49) (22.32) - (2,170.17) (694.36) (1,453.49) (22.32) - (2,170.18)
March, 2023
No. of borrowers 707 321 182 - 1,210 707 321 182 - 1,210
Amount outstanding 59,757.88 40,570.21 14,430.66 - 1,14,758.75 59,757.88 40,570.21 14,430.66 - 1,14,758.75
Provision thereon 762.17 5,307.05 5,071.21 - 11,140.43 762.17 5,307.05 5,071.21 - 11,140.43


The following tables set forth, for the year indicated, details of loan assets subjected to restructuring:-
(₹ in Lakhs)
Type of Restructuring Under CDR Mechanism Under SME Debt Restructuring Mechanism
Sr.
no. Sub- Sub-
Standard Standard
01st April, 2021
No. of borrowers - - - - - - - - - -
2 Movement in balance for
account appearing in opening
balance
No. of borrowers - - - - - - - - - -
3 Fresh restructuring during the
No. of borrowers - - - - - - - - - -
4 Upgradations to restructured
standard category during the
No. of borrowers - - - - - - - - - -
5 Restructured standard
advances at 01st April, 2021,
which cease to attract higher
provisioning and/or additional
risk weight at 31st March,
2022 and hence need not
be shown as restructured
standard advances at 01st
April, 2022
No. of borrowers - - - - - - - - - -
31st March, 2022
No. of borrowers - - - - - - - - - -
7 Write-offs of restructured
accounts during the year
ended 31st March, 2022
No. of borrowers - - - - - - - - - -
March, 2022
No. of borrowers - - - - - - - - - -

The following tables set forth, for the year indicated, details of loan assets subjected to restructuring :
(₹ in Lakhs)
Type of Restructuring Others Total
Sr.
Sub- Sub-
no. Asset Classification Details Standard Doubtful Loss Total Standard Doubtful Loss Total
Standard Standard
01st April, 2021
No. of borrowers 19,451.00 1,627.00 1.00 - 21,079.00 19,451.00 1,627.00 1.00 - 21,079.00
Amount outstanding 1,07,375.58 12,081.64 11.16 - 1,19,468.38 1,07,375.58 12,081.64 11.16 - 1,19,468.38
2 Movement in balance for account
appearing in opening balance
No. of borrowers (1,084.00) (129.00) - - (1,213.00) (1,084.00) (129.00) - - (1,213.00)
Amount outstanding (33,277.00) (1,775.04) - - (35,052.04) (33,277.00) (1,775.04) - - (35,052.04)
Provision thereon (1,357.85) (452.61) - - (1,810.46) (1,357.85) (452.61) - - (1,810.46)
3 Fresh restructuring during the year
ended 31st March, 2022
No. of borrowers 4,232.00 974.00 4.00 - 5,210.00 4,232.00 974.00 4.00 - 5,210.00
Amount outstanding 76,866.84 32,929.83 312.69 - 1,10,109.36 76,866.84 32,929.83 312.69 - 1,10,109.36
4 Upgradations to restructured standard
category during the year ended 31st
March, 2022
No. of borrowers - - - - - - - - - -
5 Restructured standard
advances at 1st April, 2022,
which cease to attract higher
provisioning and/or additional
risk weight at 31st March,
2022 and hence need not be
shown as restructured standard
advances at 1st April, 2022
No. of borrowers - - - - - - - - - -
accounts during the year ended 31st
March, 2022
No. of borrowers (2,487.00) 2,300.00 187.00 - - (2,487.00) 2,300.00 187.00 - -
Amount outstanding (21,562.73) 19,913.41 1,649.32 - - (21,562.73) 19,913.41 1,649.32 - -
Provision thereon (743.89) 283.41 460.48 - - (743.89) 283.41 460.48 - -
7 Write-offs of restructured accounts
during the year ended 31st March,
2022
No. of borrowers (10,213.00) (1,057.00) (1.00) - (11,271.00) (10,213.00) (1,057.00) (1.00) - (11,271.00)
Amount outstanding (13,633.16) (1,644.13) (11.16) - (15,288.45) (13,633.16) (1,644.13) (11.16) - (15,288.45)
Provision thereon (1,242.68) (761.28) (5.58) - (2,009.54) (1,242.68) (761.28) (5.58) - (2,009.54)
31st March, 2022
No. of borrowers 9,899.00 3,715.00 191.00 - 13,805.00 9,899.00 3,715.00 191.00 - 13,805.00
Amount outstanding 1,15,769.53 61,505.71 1,962.01 - 1,79,237.25 1,15,769.53 61,505.71 1,962.01 - 1,79,237.25
Note: Amount outstanding includes interest receivable.

NOTE 63: RELATED PARTY DISCLOSURE
Related party transactions
(₹ in Lakhs)
Holding/ultimate Associates of holding Key Management
Related Party Fellow Subsidiaries Relatives of Director Directors Others Total
holding company company** Personnel
31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March,
Items
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Borrowings# - - 25,704.22 15,466.86 - - - - - - - - - - 25,704.22 15,466.86
Deposits# - - 109.85 - 21.69 - - - - - - - - - 131.54 -
Placement of deposits# - - 283.26 94.60 3.68 - - - - - - - 615.12 615.12 902.06 709.72
Advances# - - 26,109.16 4,356.58 - - - - - - - - - - 26,109.16 4,356.58
Investments# - - 22,535.12 33.32 - - - - - - - - - - 22,535.12 33.32
Purchase of Aditya - - 21,884.31 - - - - - - - - - - - 21,884.31 -

Birla Special Situations
Fund I *
Purchase of fixed/other - - 34.60 27.11 - - - - - - - - - 0.56 34.60 27.67
assets
Sale of fixed/other assets 20.97 - 0.65 30.02 - - - - - - - - - - 21.62 30.02
Interest paid - - 1,528.36 2,313.06 - - - - - - - - - - 1,528.36 2,313.06
Interest received - - 732.90 388.78 - - - - - - - - - - 732.90 388.78
Business support 3,676.62 2,911.16 2,380.72 1,853.92 - - - - - - - - 3,828.25 3,162.17 9,885.59 7,927.25
expenses*
Other transactions 1,360.11 11,293.51 29,383.32 20,028.63 2,840.37 1,488.29 1,215.15 381.66 23.81 - 1,525.46 978.02 42.64 52.15 36,390.86 34,222.26
Maximum balance outstanding balance during the year

(₹ in Lakhs)
Holding/ultimate Associates of holding Key Management
Related Party Fellow Subsidiaries Relatives of Director Directors Others Total
holding company company** Personnel
31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March, 31 March,
Items
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Borrowings - - 25,704.22 30,898.99 - - - - - - - - 25,704.22 30,898.99
Deposits - - 109.85 - 21.69 - - - - - - - - - 131.54 -
Placement of deposits - - 283.26 94.60 3.68 - - - - - - - 615.12 615.12 902.06 709.72
Advances - - 26,221.05 4,356.58 - - - - - - - - - - 26,221.05 4,356.58
OVERVIEW
Investments - - - - 22,535.12 33.32 - - - - - - - - 22,535.12 33.32

CORPORATE
* Item shown seprately as its total aggregate value exceeds 5% of total related party transactions during the period
** T
he above number includes transactions with Aditya Birla Health Insurance Company Limited which has become associate w.e.f. 21st Oct 2022 . Earlier, it was a fellow
subsidiary company. All the figures shown here pertains to respective financial year
REPORTS
# items represents balances outstanding at the end of the reporting period

STATUTORY

FINANCIAL
STATEMENTS
225
NOTE 64: BREACH OF COVENANT

There are no instances of breach of covenant of loan availed or debt securities issued.
NOTE 65: DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING

(₹ in Lakhs)
Sr.
Particulars 31st March, 2022
No.
1 Gross NPAs as reported by the Company 1,95,603.41
2 Gross NPAs as assessed by the Reserve Bank of India 1,95,603.41
3 Divergence in Gross NPAs (2-1) -
4 Net NPAs as reported by the Company 1,18,314.77
5 Net NPAs as assessed by Reserve Bank of India 1,18,314.77
6 Divergence in Net NPAs (5-4) -
7 Provisions for NPAs as reported by the Company 77,288.64
8 Provisions for NPAs as assessed by Reserve Bank of India 77,288.64
9 Divergence in provisioning (8-7) -
10 Reported Profit before tax and impairment loss on financial instruments for the year 2,14,057.64
11 Reported Net Profit after Tax (PAT) for the year ended 1,10,833.06
12 Adjusted (notional) Net Profit after Tax (PAT) for the year ended after considering the divergence in provisioning 1,10,833.06
NOTE 66: SECTORAL EXPOSURE

(₹ in Lakhs)
Total Exposure Total Exposure
Percentage of Percentage of
Sectors (includes on (includes on
Gross Gross NPAs to Gross Gross NPAs to
balance sheet and balance sheet and
NPAs total exposure in NPAs total exposure in
off-balance off-balance
sheet exposure) sheet exposure)
1. Agriculture and Allied Activities 26,728.93 315.22 1.18% 20,541.38 1,183.70 5.76%
2. Industry (2.1 to 2.4)
2.1 Micro and Small 5,49,382.02 16,422.84 2.99% 4,25,613.93 23,226.29 5.46%
2.2 Medium 27,539.68 770.20 2.80% 34,645.78 750.00 2.16%
2.3 Large 9,77,873.12 35,437.93 3.62% 7,52,923.19 43,373.71 5.76%
2.4 Others, if any, Please specify 0.00 0.00 0.00% 0.00 0.00 0.00%
Total of Industry 15,54,794.82 52,630.97 3.39% 12,13,182.91 67,349.99 5.55%
3. Services (3.1 to 3.10)
3.1 Transport Operators 26,555.08 710.73 2.68% 22,834.97 541.95 2.37%
3.2 Computer Software 54,240.27 11,682.91 21.54% 40,386.05 10,759.94 26.64%
3.3 Tourism, Hotel and Restaurants 1,76,179.94 921.88 0.52% 1,71,155.51 1,514.64 0.88%
3.4 Shipping 0.00 0.00 0.00% 0.00 0.00 0.00%
3.5 Professional Services 4,29,707.55 33,148.21 7.71% 3,25,788.38 31,167.96 9.57%
3.6 Trade 4,02,341.31 25,597.68 6.36% 3,55,785.83 21,578.66 6.07%
3.7 Commercial Real Estate 11,32,546.06 26,214.54 2.31% 7,35,650.19 5,962.98 0.81%
3.8 NBFCs 1,96,862.26 9,650.10 4.90% 1,43,817.16 10,739.05 7.47%
3.9 Aviation 0.00 0.00 0.00% 21,504.22 0.00 0.00%
3.10 Other Services 9,17,434.44 19,146.25 2.09% 8,06,391.45 5,053.08 0.63%


(₹ in Lakhs)
Total Exposure Total Exposure
Percentage of Percentage of
Sectors (includes on (includes on
Gross Gross NPAs to Gross Gross NPAs to
balance sheet and balance sheet and
NPAs total exposure in NPAs total exposure in
off-balance off-balance
sheet exposure) sheet exposure)
Total of Services 33,35,866.91 1,27,072.30 3.81% 26,23,313.75 87,318.26 3.33%
4. Retail Loans (4.1 to 4.10)
4.1 Housing Loans (incl. priority sector Housing) 0.00 0.00 0.00% 0.00 0.00 0.00%
4.2 Consumer Durables 0.00 0.00 0.00% 0.00 0.00 0.00%
4.3 Credit Card Receivables 0.00 0.00 0.00% 0.00 0.00 0.00%
4.4 Vehicle/Auto Loans 0.00 0.00 0.00% 0.00 0.00 0.00%
4.5 Education Loans 0.00 0.00 0.00% 0.00 0.00 0.00%
4.6 Advances against Fixed Deposits (incl. FCNR(B), 0.00 0.00 0.00% 0.00 0.00 0.00%
etc.)
4.7 Advances to Individuals against Shares, Bonds 3,009.41 - 0.00% 2,920.67 0.96 0.03%
4.8 Advances to Individuals against Gold 0.00 0.00 0.00% 0.00 0.00 0.00%
4.9 Micro finance loan/SHG Loan 0.00 0.00 0.00% 0.00 0.00 0.00%
4.10 Other Retail loans , if any, Please specify 24,52,502.62 65,037.83 2.65% 11,11,255.85 37,194.96 3.35%
Total of Personal Loans 24,55,512.03 65,037.83 2.65% 11,14,176.52 37,195.91 3.34%
5. Other Non-food Credit, if any 6,72,327.59 5,653.56 0.84% 4,96,992.96 2,555.54 0.51%
Total Loans & advances 80,45,230.28 2,50,709.88 3.12% 54,68,207.51 1,95,603.41 3.58%
NOTE 67: INTRA-GROUP EXPOSURES

(₹ in Lakhs)
Total amount of intra-group exposures 48,644.28 4,389.90
Total amount of top twenty intra-group exposures 48,644.28 4,389.90
Percentage of intra-group exposures to total exposure of the Company on borrowers/customers 0.58% 0.08%
NOTE 68: UNHEDGED FOREIGN CURRENCY EXPOSURE

Company does not have any unhedged foreign currency exposures. Please refer Note 52: Risk management.

NOTE 69: DISCLOSURE OF COMPLAINTS

(A) Summary information on complaints received by the NBFCs from customers and from the Offices of
Ombudsman
(₹ in Lakhs)
Sr.
No.
Complaints received by the Company from its customers
1 Number of complaints pending at beginning of the year 105 73
2 Number of complaints received during the year 4,456 2,666
3 Number of complaints disposed during the year 4,351 2,634
3.1 Of which, number of complaints rejected by the Company - -
4 Number of complaints pending at the end of the year 210 105
Maintainable complaints received by the Company from Office of Ombudsman
5 Number of maintainable complaints received by the Company from Office of Ombudsman 1,644 766
5.1 Of 5, number of complaints resolved in favour of the Company by Office of Ombudsman 1,582 747
5.2 Of 5, number of complaints resolved through conciliation/mediation/advisories issued by Office of 62 19
Ombudsman
5.3 Of 5, number of complaints resolved after passing of Awards by Office of Ombudsman against the - -
Company
6 Number of Awards unimplemented within the stipulated time (other than those appealed) - -
(B)Top five grounds of complaints received by the Company from customers

% increase/
Number of
Number of decrease in Number of Of 5, number
complaints
Grounds of complaints, complaints the number complaints of complaints
pending at the
(i.e. complaints relating to) received during of complaints pending at the end pending beyond
beginning of the
the year received over the of the year 30 days
year
previous year
1 2 3 4 5 6
31st March, 2023
Bureau Related 31 1764 142% 57 6
Pre-Closure/Closure 37 1117 38% 49 10
Payment Related 14 780 86% 58 12
Alleged Fraud 6 273 194% 15 1
Customer Experience 0 292 1% 18 3
Other 17 230 (30%) 13 5
Total 105 4456 67% 210 37
31st March, 2022
Bureau Related 1 728 215% 31 8
Pre-Closure/Closure 40 808 122% 37 11
Payment Related 7 420 (23%) 14 6
Alleged Fraud 2 93 11% 6 3
Customer Experience 7 290 (62%) 0 0
Other 16 327 17% 17 9
Total 73 2666 18% 105 37
Note : The above disclosure in Note 69 (A) and (B) has been extracted by the Company from complaint management system (CMS).


NOTE 70: DUES TO MICRO ENTERPRISES AND SMALL ENTERPRISES:

(₹ in Lakhs)
1. The principal amount and the interest due thereon remaining unpaid to any supplier as at the end 288.81 696.87
of each accounting year;
2. The amount of interest paid by the Company in terms of section 16 of MSMED Act, 2006, along - -
with the amounts of the payment made to the suppliers beyond the appointed day during the year;
3. Amounts of the payment made to the suppliers beyond the appointed day during the year; the - -
amount of interest due and payable for the period of delay in making payment (which have been
paid but beyond the appointed day during the year) but without adding the interest specified under
MSMED Act, 2006;
4. The amount of interest accrued and remaining unpaid at the end of each accounting year; - -
5. The amount of further interest remaining due and payable even in the succeeding years, until such - -
date when the interest dues as above are actually paid to the small enterprise, for the purpose of
disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006.
The disclosure regarding micro and small enterprises have been determined to the extent such parties have been identified on
the basis of information available with the Company and relied upon by the auditors.
NOTE 71: EXPENDITURE IN FOREIGN CURRENCY

(₹ in Lakhs)
Finance Cost 8,009.78 11,554.27
Employee Benefit Expenses 48.39 20.59
Intangible Assets under Development 40.28 36.37
Legal and Professional Charges 20.43 198.99
Miscellaneous Expenses 12.87 7.98
Total 8,131.75 11,818.20
Unhedged foreign currency payable & receivable as at 31st March, 2023 & 31st March, 2022 are Nil.
NOTE 72: DISCLOSURE PERTAINING TO STOCK STATEMENT FILED WITH BANKS OR FINANCIAL INSTITUTIONS
The Company has availed of the facility (Secured borrowing) from the lenders interalia on the condition that, the company shall
provide or create or arrange to provide or have created, security interest by way of a first pari pasu charge of the loans.
Details reported in the quarterly stock statement and as per book of accounts in financial year 2022-2023
As per Statement As per Book of
Quarter ended
filed with Bank accounts
June 2022 50,64,848.25 50,64,848.34
September 2022 57,39,729.70 57,39,730.07
December 2022 64,31,269.35 64,31,268.98
March 2023 73,11,607.37 73,11,607.37
Details reported in the quarterly stock statement and as per book of accounts in financial year 2021-2022
As per Statement As per Book of
Quarter ended
filed with Bank accounts
June 2021 43,42,495.00 43,48,960.87
September 2021 46,10,894.00 46,26,444.78
December 2021 48,44,432.00 48,16,907.06
March 2022 53,34,821.00 53,35,301.88

NOTE 73: EVENTS AFTER REPORTING DATE

There have been no events after the reporting date that require adjustments or disclosure in these financial statements.
NOTE 74: Money raised by way of borrowing from bank and financial institution have been applied by the Company for the
purposes for which they were raised, other than temporary deployment pending application of proceeds.
NOTE 75: ULTIMATE BENEFICIARY

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or
entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
NOTE 76: The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
NOTE 77: No proceedings have been initiated or pending against the company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
NOTE 78: The Reserve Bank of India vide its press release dated 30 th September, 2022 has categorised the Company in
the Upper layer under Scale Based Regulation (SBR) for NBFCs. The Company is taking necessary steps in complying with the
requirements of SBR as applicable.
NOTE 79: The company has not defaulted in repayment of principal and interest during the year end and as at Balance sheet
date March, 31, 2023
NOTE 80: AMENDMENTS IN PREVAILING STANDARDS BUT NOT EFFECTIVE

On March, 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015. The effective date for adoption
of these amendments is annual period beginning on or after 1st April, 2023. The significant amendments are as below.
(i) Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant
accounting policies. The Company has evaluated the amendment and the impact of the amendment is insignificant on its


(ii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help
entities distinguish changes in accounting policies from changes in accounting estimates. The Company has evaluated the
amendment and the impact of the amendment is insignificant on its financial statements.
(iii) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that
give rise to equal and offsetting temporary differences. The Company has evaluated the amendment and the impact of the
amendment is insignificant on its financial statements.
NOTE 81: The figures for previous year have been regrouped/rearranged/recasted wherever necessary to conform to current
period presentation.
Partner Partner Director Managing Director and
Chief Executive Officer



NOTES
NOTES
NOTES
CIN: U65990GJ1991PLC064603
Registered Office: Indian Rayon Compound, Veraval - 362 266, Gujarat

+91 2876 243257 | (F) +91 2876 243220
Corporate Office: One World Centre, Tower 1, 18th Floor, Jupiter Mill Compound,
841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013
+91 22 4356 7100 | (F) +91 22 4356 7266
[email protected] | www.adityabirlafinance.com

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ANNUAL REPORT

PROTECTING INVESTING FINANCING ADVISING

96 ₹17,041 Cr Rated AAA/Stable

Note: Disbursements are non-LOC.

For the Consumer, When They Need

Customer segment-wise aum mix (%)

Note: Values as of March 2023.

2 Aditya Birla Finance Limited

We are expanding our omnichannel presence

Note: Map not to scale. FY19 FY20 FY21 FY22 FY23

Annual Report 2022-23 3

4 Aditya Birla Finance Limited

₹80,556 Cr platforms, we aim to create unmatched experiences. We

₹1,554 Cr We are poised to redefine the financial services landscape

Digitalisation and analytics

Annual Report 2022-23 5

Catering to Diverse Customer Segments

SEGMENT-WISE PRODUCT OFFERING

PERSONAL AND CONSUMER UNSECURED BUSINESS

~₹28,000 ~₹10.7 Lakh

Note: ATS - Average Ticket Size

6 Aditya Birla Finance Limited

SECURED BUSINESS CORPORATE/MID-MARKET

Annual Report 2022-23 7

Delivering Consistent Performance

Total Income Net Interest Income Profit After Tax (PAT)

6,089 3,088 1,108

10.1 17.2 16.8

Cost-Income Ratio (CIR) GNPA NNPA

8 Aditya Birla Finance Limited

Total AUM ROA Return On Equity (ROE)

Annual Report 2022-23 9

Digitalisation – a new way to the future

10 Aditya Birla Finance Limited

USE OF ANALYTICS IN OPERATIONS

CUSTOMER CUSTOMER PROCESS COLLECTIONS

99% 98% 83% 88%

Udyog Plus – MSME platform

for MSMEs in March 2023

Finance Business Solutions

Loan E-commerce Banking

12 Aditya Birla Finance Limited

Cash flow-backed lending by using

 hannel financing for dealers

Secured lending for dealers

Empowering People for Success

Talent management Age Profile of Employees (%)

50% 40-50 years >50 years

Senior leaders undergone

87 Health camps Bone density Body composition

14 Aditya Birla Finance Limited

To support our employees, we have

Functional Learning Behavioural Learning and Diversity, Equity and

62% Improvement • promoting continuous engagement

In 90-day-performance, post 1,356+ Employees

Imparted CRISIL training on improving

Certified platinum badge level 3,000+

16 Aditya Birla Finance Limited

Celebrate Motherhood Programme

Guiding to Achieve Excellence.

hannel financing for dealers

he growth of the loan book has been accompanied by strong