Muthoot Finance

Staying focused.
Winning together.
Annual Report 2022-23

Our Guiding
Inspiration
e e
Our founder, Our visionary chairman Late
Late Shri M. George Shri. M. G. George Muthoot
Muthoot, envisioned the was instrumental in making
prospects of gold loan in Muthoot Finance a Pan India
India long back in 1939. Company and largest gold
His business insight and loan NBFC in India. Under
vision helped transform his strategic leadership, the
India’s gold loan business. Muthoot group grew into a
Guided by his values, we multi dimensional business
have strengthened our behemoth from 31 branches
reputation over the years in 4 states in 1979 to 4600+
and established ourselves as branches across the
a trusted pan-India brand. country by 2021.
e e
Contents Corporate Overview
Corporate Snapshot
Footprint
4
8
Milestones 10
Key Performance Indicators 14
Chairman’s Message 16
Message from the Top 20
Business Review 22
Technology and Digitisation 28
Marketing 32
ESG Approach 36
Environment 38
People 42
Chairman’s Message Community 46
Governance 52
Awards and Accolades 58
Statutory Reports
Report of the Board of Directors 60
Business Responsibility &
82
Sustainability Reporting
Report on Corporate Governance 117
Management Discussion and Analysis 143
Financial Statements
Standalone Financial Statements 158
Form AOC-1 291
Consolidated Financial Statements 292
Page 16 Marketing
Community
Page 46 Page 32
Forward-looking statement
This report and other statements – written and oral – that we periodically make, may contain forward-looking statements that set out
anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by
using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection
with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we
believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate
assumptions. Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, actual
results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no
obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Staying focused.
Winning together.
2 Muthoot Finance Limited

Corporate
Overview
As the pioneers of the gold loan segment and the largest gold
loan NBFC in the country, the onus has always been on us to
lead the way. We started our business to impact the lives of
people who need access to formal credit lines. As we stand
here today, this continues to be our driving force. We have
now been able to popularise gold loan among people with
formal credit lines also.
Since our inception, we have witnessed multiple economic

and industry downturns. Despite these, we have always
focused on reaching more and more people and helping them
transform their lives.
The headwinds that marked the year under review also

impacted our growth trajectory. In most conventional cases,
the first thought that would cross the mind would be to
downsize or cut down on costs exponentially.
At Muthoot, however, we are not cut from the same cloth. We

continued focusing on improving our own capabilities and
expanding our brand recall. We roped in Mrs. Madhuri Dixit
as our brand ambassador and continued to focus on well-
curated marketing campaigns to enhance our brand recall.
In addition, we focused on expanding our presence and
improving operational efficiencies through digitisation.
Our ability to stay focused on attaining our goals will be a

winning strategy, for us and our customers.
Annual Report 2022-23 3

COR P OR AT E S N A P S HOT
Staying focused on
addressing India’s
financial needs
Established in 1887 by Shri Ninan Mathai Mission

Muthoot, we entered the gold loan To build leading customer-centric businesses
business in 1939 under the leadership of enabled by technology, maintaining the highest
standards of corporate governance and
Shri. M George Muthoot. Our primary uncompromising values.
goal was to address the credit needs of
the underserved segments of the country.
Vision
As a result of our focused efforts over the Be the most trusted, globally diversified
years, we have emerged as India’s largest institution enriching lives of the masses while
contributing back to the society.
and most reliable gold loan NBFC.
We provide access to credit for individuals who possess

gold jewellery but may need access to formal credit
Core values
We take pride in our strong foundation. Our values reflect
channels or face delays in obtaining it. In addition to
a culture of trust which is built on the following pillars:
gold loans, we offer various financial products and
services, including multiple types of loans, insurance
offerings, money transfer services, and the sale of gold
coins through our various subsidiaries.
Goodwill Ethics Values
Integrity Reliability
Trustworthiness Dependability

Corporate
Overview
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Listed diversified
Microfinance NBFC in Sri Lanka
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COR P OR AT E S N A P S HOT
Muthoot Finance STATES AND UNION

TERRITORIES WHERE MUTHOOT
at a glance FINANCE IS PRESENT
MARKET CAPITALISATION
AS ON 31ST MARCH, 2023
J393,399 mn
29
RETAIL INVESTOR BASE ACROSS DEBENTURE TEAM MEMBERS
AND SUBORDINATED DEBT PORTFOLIO
27,273
100,000+ FY23
26,716
FY22

Corporate
Overview
CUSTOMERS SERVED DAILY PAN-INDIA BRANCHES
4,739
200,000+
GOLD JEWELLERY KEPT AS SECURITY
180 tonnes
LOAN ASSETS UNDER MANAGEMENT
J632,098 mn

FOOT PR IN T
Staying
focused on
reaching more
people
Committed to financial inclusion, we continued to identify areas with
potential and strategically expanded our presence across the country,
reaching more underserved communities.
Opportunities we capitalised on:

• Rural India holds an impressive 65% share of the • To address the needs of these under-served rural
entire gold stock in the country, highlighting the and semi-urban markets, we have strategically
significant role of gold as a valuable asset and established a strong presence in these areas. By
investment choice in these regions. doing so, we aim to bridge the financial gap and
provide accessible and inclusive financial services to
• A large portion of the rural population faces limited
empower individuals and businesses in these regions.
access to credit facilities, posing challenges to their
financial growth and development. This lack of credit
options often hinders their ability to invest in their
businesses, education, or healthcare.

Corporate
Overview
State-wise branch network

Region-wise distribution of
branches (%) (as on 31st March,
2023)
7 North
17
South
59 East
17
West
Jammu & Kashmir BRANCHES ACROSS INDIA
4,739
17
Himachal Pradesh
13
Punjab
191
10 Uttarakhand
Chandigarh 23
Haryana
142 Delhi
226
Assam
Rajasthan Uttar Pradesh

34
146 194 Bihar
25 Tripura
4
Jharkhand
Gujarat Madhya Pradesh
17 West Bengal
211 106 162
Chhattisgarh
1
27
1 Odisha
Daman Maharashtra 79
& Diu
Dadra & 275
Nagar Telangana
314
Haveli
Goa Andaman
36 and Nicobar
Andhra Pradesh Islands
536 426
Karnataka
7 Puducherry
8
Tamil Nadu
980
Kerala
528

MILE S TONE S
Key events
over the years
2011
1887
• Retail loan portfolio
crossed H158 billion
Commenced operations as a trading
• Retail debenture portfolio
business in a Kerala village
crossed H47 billion
1939 • CRISIL assigned long-term

rating of AA-/Stable for
Embarked on gold loan business
H1 billion subordinated debt
2001 2010 issue and for H4 billion non-

convertible debentures
Received the RBI licence to function • Retail loan portfolio crossed
issue respectively
as an NBFC. H74 billion
• ICRA assigned long-term rating
2004 crossed H27 billion
of AA-/Stable for
H1 billion subordinated debt
Received the highest rating of F1 • CRISIL assigned P1+ rating for issue and for H2 billion non-
from Fitch Ratings for a short-term short term debt of H4 billion, convertible debentures
debt of H200 million ICRA assigned A1+ for short issue respectively
term debt of H2 billion.
2005 • Net owned funds crossed
• PE investments of
H2,556.85 million received
Retail loan and debenture
H5 billion from Matrix Partners, LLC,
portfolio crossed H5 billion
The Welcome Trust, Kotak PE,
• Gross annual income crossed
2007 H10 billion
Kotak Investments and Baring
India PE
• Retail loan portfolio crossed • Bank credit limit crossed
• Net owned funds crossed
H14 billion H17 billion
H13 billion
• Net owned funds crossed • Branch network
H1 billion crossed 1,600
H23 billion
• Accorded NBFC-ND-SI status
• Bank credit limit crossed
• Branch network crossed 500 2008 H60 billion
• Retail loan portfolio crossed • Branch network

H21 billion crossed 2,700

crossed H1 billion
• Converted into a Public

Limited Company

Corporate
Overview
2015
• Issued 25,351,062 fresh equity
shares by way of an institutional
placement programme under
Chapter VIII–A of the SEBI ICDR
Regulations, aggregating up to
2016
• Retail loan portfolio crossed
H4,182.93 million
H243 billion
2014 • Listed debenture portfolio
• Listed debenture portfolio raised
• Retail loan portfolio crossed raised through public issue
through public issue H12.39 billion
H219 billion H14.62 billion
• Net owned funds crossed • Retail loan portfolio touched
H55 billion
• Gross annual income touched
• Gross annual income touched • Net owned funds crossed
H48.75 billion
H49 billion H50 billion
• PAT for the year touched
• Branch network crossed 4,200 • Gross annual income touched
H8.10 billion
H43.25 billion
• Acquired 79% of the equity capital
2012
of Muthoot Homefin (India) Limited
H6.71 billion
(MHIL), a housing finance company
• Retail loan portfolio crossed
• Acquired 51% equity shares registered with the National
H246 billion
of Colombo-based Asia Asset Housing Bank
• Retail debenture portfolio Finance PLC (AAF)
• Acquired Muthoot Insurance
crossed H80 billion
Brokers Private Limited (MIBPL), an
• ICRA assigned long-term rating of unlisted private limited company
AA-/Stable and short-term rating holding a license to act as direct
of A1+ for H93,530 million line broker from IRDAI (Insurance
of credit Regulatory and Development
Authority of India) since 2013,
• Raised H9,012.50 million in April
as a wholly-owned subsidiary in
2011 through a successful IPO
June 2016
• Raised H6.93 billion through
• Acquired 46.83% of the capital
Non-convertible Debenture
of Belstar Investment and
Public Issue (Series I)
Finance Private Limited (BIFPL),
• Raised H4.59 billion through reclassified as an NBFC-MFI by the
Non-convertible Debenture RBI (Reserve Bank of India) with
Public Issue (Series II) effect from December 11, 2013,
in July 2016
H29 billion • CRISIL and ICRA upgraded
long-term debt rating from
AA-/Stable to AA/Stable
H45 billion
• Bank credit limit crossed

H92 billion
• Branch network
crossed 3,600

MILE S TONE S
2017 2021
• Loan assets portfolio crossed
H272 billion • Loan assets portfolio crossed
H526.00 billion
• Listed debenture portfolio raised
through public issue H18.31 billion • Listed debentures raised
through public issue of H22.93
• Net owned funds crossed H64 billion billion and through private
• Gross annual income touched placement of H36.46 billion.
H57.46 billion • Net owned funds crossed
• PAT for the year touched 2020 H151.88 billion
H11.80 billon • Loan assets portfolio crossed • Gross annual income touched
• Increased stake in BIFPL to 64.60%, H416.00 billion H105.74 billion
thus making it a subsidiary • Listed debentures raised • PAT for the year touched
• Enlarged stake in MHIL to 88.27% through public issue of H21.02 H37.22 billion
billion and through private
• Improved stake in AAF to 60% • Branch network crossed 4,600
placement of H14.25 billion
• CRISIL and ICRA upgraded
2018 H113.09 billion
long-term credit rating from
AA to AA+/Stable
• Loan assets portfolio crossed • Gross annual income touched
• Listed debenture portfolio raised • PAT for the year touched
through public issue of H19.69 billion H30.18 billion
• Net owned funds crossed H77 billion • Branch network crossed 4,500
• Gross annual income touched • Increased stake in M/s. Asia
H62.43 billion Asset Finance PLC to 72.92%.
• PAT for the year touched • Muthoot Finance was assigned
H17.20 billion issuer ratings by three
• Branch network crossed 4,300 international credit rating
agencies – Fitch Ratings at BB+/
• Increased stake in BIFPL to 66.61% Stable, S&P Global at BB/Stable
• Enlarged stake in MHIL to 100% and Moody’s Investor Service at
making it a wholly-owned subsidiary Ba2/Stable
• In October 2019, we raised $450

million by issuing 6.125% senior
secured notes and in March
2020, we raised $550 million by
issuing 4.40% senior secured
notes under both Rule 144A and
Regulation S of the US Securities
Act, 1933

Corporate
Overview
2023
• Roped in Madhuri Dixit as
the brand ambassador,
2022 alongside Amitabh Bachchan
• Loan assets portfolio crossed
H580 billion • Loan assets portfolio crossed
• Listed debentures raised through H632 billion
public issue of H17 billion and
through private placement of • Net owned funds crossed
H15.32 billion.
H208.94 billion
H182.96 billion • Gross annual income
• Gross annual income touched touched H105.44 billion
H110.98 billion
• Profit after tax for the year
H39.54 billion touched H34.74 billion
• Consolidated PAT of the group for
the year crossed H40 billion
• Branch network
• Raised fresh equity of H2,750
crossed 4,700
million in Belstar Microfinance
Limited, resulting in reduction of
Muthoot Finance’s equity stake to
60.69%

K E Y PE R FOR M A NCE INDIC ATOR S
Winning by staying
resilient amid headwinds
Revenue (H million) Profit after tax (H million)

S1,05,437 mn S34,735 mn
FY23 1,05,437 FY23 34,735
FY22 1,10,984 FY22 39,543
FY21 1,05,744 FY21 37,222
FY20 87,228 FY20 30,183
FY19 68,806 FY19 19,721
Net worth (H million) Earnings per share (H)

S2,10,619 mn S86.54
FY23 2,10,619 FY23 86.54
FY22 1,83,445 FY22 98.55
FY21 1,52,389 FY21 92.79
FY20 1,15,718 FY20 75.31
FY19 97,928 FY19 49.27
Gold loan portfolio (H billion) Gold holdings (tonnes)

S619 bn 180 tonnes
FY23 619 FY23 180
FY22 575 FY22 187
FY21 519 FY21 171
FY20 408 FY20 176
FY19 336 FY19 169
Average gold loan per branch (H million) Total employees

S130.57 mn 27,273
FY23 130.57 FY23 27,273
FY22 124.61 FY22 26,716
FY21 112.10 FY21 25,911
FY20 89.28 FY20 25,554
FY19 74.97 FY19 24,224

Corporate
Overview
10-year performance review

(H in Millions, unless specified otherwise)
FY14 FY15 FY16 FY17 FY18* FY19* FY20* FY21* FY22* FY23*
Total revenue 49,474 43,246 48,750 57,467 63,331 68,806 87,228 105,744 110,984 105,437
Profit before tax 11,936 10,279 13,168 19,210 28,447 30,768 40,574 50,065 53,094 46,664
Provision for tax 4,135 3,573 5,072 7,411 10,671 11,047 10,391 12,843 13,551 11,929
Profit after tax 7,801 6,705 8,096 11,798 17,776 19,721 30,183 37,222 39,543 34,735
Equity share capital 3,717 3,980 3,990 3,994 4,000 4,007 4,010 4,012 4,013 4,014
Reserves and 38,929 46,855 52,202 61,170 74,120 93,921 111,708 148,377 179,432 206,605
surplus
Net worth 42,646 50,835 56,192 65,164 78,120 97,928 115,718 152,389 183,445 210,619
Loan assets 218,615 234,085 243,789 272,785 291,420 342,461 416,106 526,223 580,532 632,098
Branches (no.) 4,270 4,245 4,275 4,307 4,325 4,480 4,567 4,632 4,617 4,739
Employees (no.) 25,012 22,882 22,781 24,205 23,455 24,224 25,554 25,911 26,716 27,273
*Under IND-AS
Key ratios
H in Millions
FY21 FY22 FY23
Capital adequacy (%) 27.39 29.97 31.77
Stage 3 loan assets (%) 0.88 2.99 3.79
Return on assets (%) 7.99 7.24 5.93
Return on equity (%) 27.77 23.55 17.63
Debt-equity (%) 3.02 2.72 2.36

CH A IR M A N ’ S ME S S AGE
Undeterred
focus for
decades
George Jacob Muthoot

Chairman & Whole Time Director
Dear Shareholders,
I am pleased to inform you that this was yet another
With inflation and year where we demonstrated resilience amid industry
headwinds. However, as you have noticed over
geo-political tensions the years, we continued to remain steadfast in our
focus towards promoting financial inclusion in the
looming large, gold continues country. As a result of our concerted efforts, we were
successfully able to end the seemingly slow year with
to be a safe-haven asset a record-breaking performance in the final quarter,
and will be so over the a testament to our undeterred focus irrespective of
external developments.
foreseeable future.
Operating backdrop
Before I delve into the details of our performance,
it is imperative that we talk about the economic
environment in which we operate. In the global context,
India has indeed been a silver lining; despite challenges
posed by inflation and supply chain disruptions,
the Indian economy displayed immense resilience,

Corporate
Overview
supported by the Government’s proactive measures

including infrastructure investments, promoting
private investment, and pursuing self-sufficiency.
India retained its position as the fifth-largest economy We announced an interim
in the world and I truly believe that it will continue
on this growth trajectory over the foreseeable future dividend of 220% for the fiscal
as well.
year 2023, equivalent to S22 per
The NBFC market has also been marked with
positivity over the last few years. According to a
equity share with a total payout
report by the Reserve Bank of India, non-banking of S8,832 million.
financial companies (NBFCs) have posted the highest
credit growth of 17.3% in the last five years, while net
interest margins for lenders increased by 30 basis
New products launched during the year
points due to higher yields. The profitability of NBFCs
has recorded significant improvement due to record We have introduced Small Business Loans,
disbursals and improved asset quality. In addition to recognising the crucial role of small
this, NBFCs also reported lower gross non-performing
businesses in India's economy, accounting for
90% of all businesses. These unsecured loans
assets, and credit costs continue to trend downwards.
offer up to T10 lakhs and initially operate in
metros, with plans for expansion into Tier
Gold loan opportunities continue to shine 2 and Tier 3 locations in Phase 2, subject to
Our focus on gold loan business is based on India’s progress assessment.
profound affinity for gold. This seems to be the case
Additionally, we have launched Micro
for the last several decades and continues even today,
Personal Loans as part of our strategy
and not surprisingly as well, considering the position to serve our existing customer base
of gold as a symbol of wealth and prosperity in Indian comprehensively, positioning ourselves as
society, especially among the rural populace. With a one-stop financial service provider. These
inflation and geo-political tensions looming large, gold Pre-Approved Personal Loans, termed Micro
continues to be a safe-haven asset and will be so over Personal Loans, are available to eligible
the foreseeable future. customers, featuring EMI terms of upto 12
months with a maximum loan amount of
Gold prices have surged as investors sought refuge in K100,000, and the entire process is digital.
safe-haven assets amidst banking crisis in the US and The introduction of Micro Personal Loans fills
Europe, consequently boosting the demand for gold
a gap in Muthoot Finance's product portfolio,
providing customers with a convenient
loans and resulting in increased business for the gold
EMI-based loan option, expanding our range
loan industry. It is worth noting that while customers of financial solutions, enhancing customer
now qualify for larger loan amounts per gram of gold, engagement, and addressing their diverse
the demand for gold loans is not solely influenced financial needs.
by gold prices. The current uptick in demand is also
fuelled by economic revival, highlighting that the
need-based nature of gold loans plays a significant Performance during the year
role. Besides this, there has been a tectonic shift in
The year did not get off to the start that we had in mind,
the narrative that the younger populace is not inclined
but we were able to recover and finish the year on a
towards gold loans. We have observed a hike in
remarkable note. During the year, we recorded revenues
demand from youngsters; with a spike of more than
of H1,05,437 million, a marginal decline of ~5% over the
50 per cent y-o-y, youngsters are now giving more
previous year, whereas our profit after tax also declined
preference to experiences over material possessions.
by ~12% to H34,735 million. However, our gross assets
These bode well for us and validate our belief that
under management increased to H632,098 million,
gold loan demand is here for the long run.

CH A IR M A N ’ S ME S S AGE
compared to H580,532 million, an increase of ~9% over serve our customers more effectively. Additionally,
the previous year. our focus on risk management has paid off, as we
recorded a significant reduction in Stage 3 loan assets.
The highlight of the year was the rebound in the fourth Our tech-savvy approach has been a game-changer,
quarter. We achieved a record-breaking milestone with successfully integrating with various payment gateways
our highest-ever quarterly gold loan disbursement of such as RazorPay, Virtual Account, Virtual UPI, Bharat
H518 billion. Furthermore, we witnessed an all-time Bill Payment System, and the website. Moreover, we
high gold loan growth of H50 billion during any fourth have streamlined our operations with the automation
quarter, a remarkable achievement. Additionally, our of field investigations through our Field Investigation
interest collection for the quarter reached an all-time Application, further enhancing our efficiency and
high, totalling H27 billion, surpassing any previous customer service. This year has truly marked a turning
quarter’s performance. point in our journey towards sustained growth
and success.
The rebound in performance could be attributed to our
ability to stay focused on our goals, alongside dedicated We are incredibly proud to announce the exceptional
marketing efforts like launching our Gold Loan Mela performance of Belstar Microfinance Limited this year.
campaign and roping in Madhuri Dixit to enhance our Our dedication to financial inclusion and responsible
brand recall. growth has resulted in remarkable achievements. Our
profit after tax soared to H1,303 million, marking a
Strong performance by our subsidiaries staggering 189% increase over the previous year. We
Muthoot Homefin India Limited has achieved also witnessed significant growth in our key metrics,
remarkable financial growth this year. Our profit after with total assets under management reaching H61,925
tax has soared to H104 million, marking a substantial million, a 42% increase, and gross disbursements
24% increase compared to the previous year's H84 surging to H57,951 million, aligning with pre-Covid
million. Furthermore, our commitment to providing levels, thanks to our robust branch network, which
affordable housing solutions has led to an impressive expanded to 768 branches with the addition of 120
surge in home loan disbursements, reaching H1,727 new branches this year. Additionally, we successfully
million, an extraordinary 106% surge from the completed a round of equity infusion from new
previous year. This growth is not limited to just one investors, further fortifying our financial position.
region; we have experienced a significant boost in Moreover, our commitment to compliance and staff
business volumes across Delhi NCR, Uttar Pradesh, training was evident in the successful implementation
Pondicherry, Gujarat, and South India. Our relentless of new microfinance regulations announced by RBI in
efforts in expanding our network have resulted in March 2022. Through our efforts, we have empowered
the empanelment and activation of various sourcing over 2 million women to create livelihoods and improve
partners, while also streamlining our processes to their lives.
reduce turnaround time. This year has been a testament
to our dedication and strategic focus on sustainable Our dedication to excellence has resulted in outstanding
growth in the housing finance sector. achievements across the board in Muthoot Insurance
Brokers. Total premium collection surged by an
Muthoot Money Limited staged an impressive impressive 36%, reaching H6,505 million, a testament
turnaround, posting a profit of H2 million, a substantial to our customers' trust in our services. The number
improvement from the loss of H66 million in the of policies saw a remarkable 30% increase, totalling
previous year. Our growth strategy has been on 46,86,920 policies. Furthermore, our relentless pursuit
point, with the addition of 83 branches, expanding of growth doubled our revenue, reaching H678 million,
our branch network to 149 branches, enabling us to while profit after tax experienced a staggering 68%

Corporate
Overview
boost, reaching H464 million. These extraordinary In addition to this, CSR forms an integral part of our
results reflect our commitment to delivering exceptional business and not just some statutory obligation.
insurance solutions and our unwavering focus on For years, we have been working on the upliftment
customer satisfaction. We look forward to continuing of marginalised communities, and this focus
this trajectory of success in the future. continues to prevail even today and will do so for the
foreseeable future. During the year, we spent a total
Our commitment to excellence and innovation has of H964 million, way above the statutory obligation.
resulted in impressive growth across the board in One of the significant milestones during the year was
Asia Asset Finance PLC. Our revenue surged by a the completion and handover of 200 homes through
remarkable 89% over the previous year, reaching our rehabilitation initiative - Muthoot Aashiyana. In
LKR 6,006 million, while we achieved our highest-ever celebration of this milestone, we organised a gathering
profit after tax at LKR 295 million, a 1.5x increase. for the beneficiaries on 27th July, 2022, at the Gokulam
Total gold loan assets under management increased Convention Center in Kaloor, Ernakulam. The ceremony
by 22% to reach LKR 21,201 million, and our total commenced with the inauguration by Padma Shri
assets grew by 29%, totalling LKR 25,013 million. We Jayaram, a renowned figure in the South Indian film
also strengthened our customer relationships, with industry. Myself, chaired the event, and Mr. George
the deposit portfolio increasing by LKR 4,850 million, Alexander Muthoot, the Managing Director of Muthoot
reaching LKR 13,275 million. We expanded our reach Finance, delivered the keynote address.
with the addition of 16 new branches, bringing our
island-wide branch network to 75 branches. Notably, We have already committed more than H1,000 million
our gold loan portfolio accounted for 78% of the total for the upcoming financial year, with a primary
portfolio, emphasising our expertise in this area. In focus on initiatives in the domains of environment,
addition to our financial achievements, we launched healthcare, and education. Our goal is to address
our mobile banking app ‘Luckewallet’, enhancing our poverty and elevate the socio-economic status of
digital services. Furthermore, our dedication to risk marginalised communities.
management was evident as our NPA of gold loans
improved significantly to 0.4% compared to 1.3% in the Way forward
previous year. This year has been a testament to our I truly believe that the year under review just validated
commitment to growth, innovation, and responsible something that we always knew: Our ability, grit and
financial practices, and we look forward to continuing determination to stay focused on our goals. I, on
this trajectory of success. behalf of the Board of Directors, would like to take this
opportunity to thank each and everyone associated
Responsible approach with us for their constant and unwavering support.
We have always taken extra care to ensure that This business was started with the goal of promoting
we conduct our business in the most responsible financial inclusion in the country, and we will continue
manner possible and have a positive impact on all to ensure that we are able to widen our horizons and
our stakeholders. Our focus on adopting the best continue fulfilling the aspirations of the populace.
ESG practices is a testament to that. Our employees
form the core of our success at Muthoot, and we place
great emphasis on fostering a culture of respect and
collaboration. As a result of this, we have been awarded George Jacob Muthoot
the certification of ‘Great Place to Work’ for the second Chairman & Whole Time Director
year in a row.

ME S S AGE FROM T HE TOP
Fresh thinking for a

stronger future
“Innovation has been the bedrock of our

growth journey. We undertake focused
initiatives to amplify the brand recall, build
a future-ready workforce and enhance
information security. These initiatives will
continue to drive transformation, as we
strengthen our presence in the West and
North-East.”
Alexander George
Joint Managing Director, The Muthoot Group
“At Muthoot, we have always upheld the

highest standards of corporate governance
and compliance. Our robust internal audit
and risk management system reflects
integrity and transparency and are
instrumental in making Muthoot one of
India’s most trusted financial services
brands.”
George Muthoot Jacob
Deputy Managing Director, The Muthoot Group

Corporate
Overview
“We have launched Small Business Loans and

Micro Personal Loans, which strengthens
our unsecured lending portfolio and could
be the next growth driver. Our insurance
distribution business continues to gain
traction. Our Sri Lankan subsidiary
continues to deliver profitable growth.”
George Alexander
“We continuously engage with our

stakeholders to understand their
expectations and gather insights, which feed
into our strategic decision-making. Giving
back to the society has been ingrained in the
organisational DNA, and our CSR initiatives
are designed to empower communities on
the margin.”
George Muthoot George
“At Muthoot, we deploy the best available

digital technologies to make our customer
journeys frictionless and convenient.
Today, data analytics plays a key role in
strengthening our credit assessment and
risk management, especially given that a
large section of our customers are new to
formal credit.”
Eapen Alexander
Executive Director, The Muthoot Group

BU S INE S S R E V IE W
Winning through a
diversified set of offerings
Muthoot Finance Limited Snapshot FY23

As India’s leading gold loan company, we have
the largest loan portfolio, and our focus has Income PAT
consistently been on extending financial services
to segments of society that have remained S1,05,437 mn S34,735 mn
underserved or overlooked. Our lending operations
revolve around utilising ‘Household Used Gold Branches Loan assets under
4,739
Ornaments’ (HUGO) as collateral, eschewing management
any dealings in gold bullion —our commitment
centres on comprehending the unique needs of S6,32,098 mn
individuals facilitating swift access to funds. We go
the extra mile by offering secure, insured lockers
for pledged gold, accompanied by a transparent Product portfolio
disclosure of lending rates and associated loan
charges at the outset, ensuring complete clarity Money transfer
Gold loan
and comprehension. Our ethos remains rooted in services
honesty, free from concealed fees or undisclosed
additional charges. Our services embrace digital Business loans Personal loans
innovation and encompass online gold loans,
convenient loan withdrawals, seamless renewals,
interest payments, and loan repayments. Our user- Corporate loans Collection service
friendly mobile app, iMuthoot, and the Muthoot
online platform facilitate these services.
Small Business loans
Highlights of FY23
• Net worth increased to K210,619 million, compared

to K183,445 million, an increase of 15%.
• Gross loan assets under management increased

to K632,098 million, an increase of 9% over the
previous year.
• Average gold loan per branch increased to K131

million, an increase of 5% over the previous year.
• Increased our customer base to 53,23,362,

compared to 53,16,246 in the previous year.
• Increased branch network to 4,739.

Corporate
Overview
Muthoot Homefin Snapshot FY23

(India) Limited Income PAT
Founded in 2011, Muthoot Homefin (India) Limited
(MHIL) is a housing finance company authorised by S1,548 mn S104 mn
the National Housing Bank (NHB). Subsequently, it
evolved into a wholly-owned subsidiary of Muthoot Branches Loan assets under
Finance Limited in August 2017. MHIL’s primary
108 management
endeavour revolves around extending accessible
housing finance solutions to individuals hailing S14,381 mn
from economically weaker sections (EWS) and
lower-income groups (LIG), particularly in Tier-II
and Tier-III cities. Operating on a hub-and-spoke
Product portfolio
model, MHIL has established its footprint across 16
Purchase from Improvement/
states, channelling centralised processing from its
developers/authority Balance
corporate headquarters situated in Mumbai.
Loans against Resale
residential property
Composite
Extension transfer
(land and
construction)
Balance transfer/
Top-up
Highlights of FY23
• Profit after tax increased to K104 million, compared

to K84 million in the previous year, an increase of
24% over the previous year.
• Home loan disbursements increased to K1,727

million, an increase of 106% over the previous year.
• Significant improvement in business volumes in

Delhi NCR, Uttar Pradesh, Pondicherry, Gujarat and
across South India.
• Focused on empanelment and activation of

various sourcing partners, along with reducing the
turnaround time.

Belstar Microfinance Snapshot FY23

Limited Income PAT
Incorporated in January 1988, Belstar Microfinance
Limited (BML) operates as a pivotal non-deposit- S10,379 mn S1,303 mn
taking microfinance institution (NBFC-MFI)
recognised by the RBI. Guided by a proficient
Board and skilled leadership, this subsidiary Branches Loan assets under
768
has transformed into a thriving and promising management
microfinance institution (MFI) with low credit
risk. BML offers scalable microfinance services,
S61,925 mn
predominantly catering to women clientele. It
operates through diverse models, including self- Product portfolio
help groups, pragatis*, small enterprise loans, and
other offerings designed to meet the diverse needs
Micro Small and medium
of its women borrowers. On 31st March, 2023,
enterprise loans enterprise loans
Muthoot Finance held a significant 56.97% stake in
Belstar Microfinance Limited.
Consumer
Education loans
goods loans
Highlights of FY23
• Profit after tax increased to K1,303 million, a
staggering increase of 189% over the previous year.
• Total assets under management increased to
K61,925 million, an increase of 42% over the
previous year.
• Gross disbursements increased to K57,951
million, an increase of 63%, in line with the pre-
COVID-19 levels.
• Increased branch network to 768, with the addition
of 120 branches.
• Completed remaining round of equity
infusion from the new Investors amounting to
K1,100 million.
• Implemented the new microfinance regulations
announced by the RBI in March 2022 and gave
adequate training to the staff and other members.
• Helped over two million women earn livelihoods
and uplift themselves.
• Bank loan rating of AA-/Positive outlook by CRISIL
Ratings Limited, highest MFI Grading of MFI 1 on
an eight-point scale, and highest rating of COCA
*A ‘Pragati’ is an informal group of five to ten women founded M1C1 in the code of conduct assessment.
on the basis of trust and knowledge of each other’s business
and nature.

Corporate
Overview
Muthoot Money Limited Snapshot FY23

In October 2018, Muthoot Money Limited (MML)
transitioned into a fully-owned subsidiary of Income PAT
Muthoot Finance Limited. With its headquarters
in Hyderabad, MML operates as a non-banking S564 mn S2 mn
finance company registered with the RBI,
specialising in vehicle and gold loans.
Branches Loan assets under
149 management
S3,870 mn
Product portfolio
New Two- Car (new and

wheeler loans used) loans
Construction Commercial
equipment loans vehicle (new and
used) loans
Gold loans
Highlights of FY23
• Recorded a turnaround by posting a profit of
K2 million, compared to a loss of K66 million in the
previous year.
• Increased branch network to 149, with the

addition of 83 branches.
• Recorded a significant reduction in Stage 3

loan assets.
• Integrated with all payment gateways (such as

Razorpay, virtual accounts, virtual UPIs, Bharat Bill
Payment System, and websites).
• Automated field investigations through our field
investigation application.

Muthoot Insurance Snapshot FY23

Brokers Private Limited Income PAT
Muthoot Insurance Brokers is a direct insurance
broker authorised by the Insurance Regulatory S678 mn S464 mn
and Development Authority of India (IRDAI)
to engage in life and non-life business. This
subsidiary seamlessly transitioned into becoming Premium collection Number of policies
a wholly-owned entity of Muthoot Finance in
September 2016. Operating as a dynamic entity,
S6,505 mn 46,86,920
Muthoot Insurance Brokers distributes various
life and non-life insurance products from multiple
insurance companies. Product portfolio
Health Vehicle
insurance insurance
Travel Home
insurance insurance
Life
insurance
Highlights of FY23
• Premium collection increased by 36% to reach

K6,505 million.
• Number of policies increased by an impressive
30% to reach 46,86,920 policies.
• Doubled our revenue to reach K678 million.
• Profit after tax increased by a staggering 68% to

reach K464 million.

Corporate
Overview
Asia Asset Finance PLC

Product portfolio
Asia Asset Finance PLC is a fully licensed institution
with a deposit-taking capacity, sanctioned by the
Central Bank of Sri Lanka and publicly listed on the Fixed deposits Mortgage loans
Colombo Stock Exchange. Boasting a robust history
exceeding five decades, the company specialises in
Leasing Factoring
diverse financial services, including retail finance,
hire purchase, and business loans. Its extensive
network comprises 75 branches strategically Short-term loans
Business loans
dispersed throughout Sri Lanka. Acquired as a
subsidiary in 2014, Asia Asset Finance PLC has
swiftly garnered acclaim as a highly customer- Personal loans Microfinance
centric entity in Sri Lanka. A distinctive range
of products and services, innovative initiatives,
Group Loans against
extensive experience, and well-honed financial
personal loans gold jewellery
acumen underpins this recognition. As of 31st
March, 2023, the ownership in AAF comprised
91 million equity shares, reflecting 72.92% of the Corporate loans
total capital.
Snapshot FY23
Highlights of FY23
Income PAT
S1,423 mn S70 mn • Revenue increased by 89% over the previous year

to reach LKR 6,006 million.
• Recorded the highest-ever profit after tax at

Branches Loan assets under LKR 295 million, an increase of 1.5x over the
75 management previous year.
S5,294 mn • Total gross loan assets under management

increased by 22% to reach LKR 21,201 million.
• Total assets grew by 29% to reach LKR

25,013 million.
• Customer deposit portfolio increased by LKR

4,850 million to reach LKR 13,275 million.
• Increased the island-wide branch network to 75,

adding 16 branches.
• Gold loans accounted for 78% of the

total portfolio.
• Launched the Luckewallet mobile

banking application.
• Non Performing Assets of gold loans improved

significantly to 0.4% compared to 1.3%.

T ECHNOLOG Y A ND DIG I T I S AT ION
Focusing on embracing
the latest technologies
At Muthoot, we have
always strived to improve
upon two major facets:
Enhanced customer
experience and internal
efficiencies. In line with
this, we have embraced
the latest technologies to
ensure we can fulfil these
aspirations.
1 2 3
Online gold audit - Gold Unlocker KYC data enhancement
digital surveillance Our IT division has introduced the and customer data
Gold audit constitutes a meticulous
Gold Unlocker feature as part of
our relentless focus on customer
protection
process through which Muthoot
convenience. This innovative At Muthoot Finance, safeguarding
Finance guarantees the safety and
addition enables customers to customer data’s privacy and
security of customer-held gold
seamlessly apply for new gold loans security takes precedence, and we
at its branches. To enhance the
from the comfort of their homes. continually enhance our applications
efficiency of this digital audit and
Through the mobile application, to ensure the accuracy of customer
reduce turnaround times (TAT)
customers can place loan requests, data attributes. We have introduced
and costs, we have incorporated
receive notifications, track agent multiple bank account verification
a novel feature of the online gold
movements, and monitor the channels, digital KYC verification
audit through our core financial
status of their loan applications. interfaces, and customer biometric
system (CFS). This innovation
This comprehensive application authentication methods to validate
facilitates remote gold audits. The
ecosystem, encompassing digital customer bank account details.
appraisal procedure for each gold
footprints and CFS integrations, These measures ensure that
loan is meticulously recorded and
empowers customers to obtain customer data updates are genuine
linked to corresponding gold loans.
loans effortlessly, eliminating the and authentic. Through our agent
This digital integration within the
need for branch visits. This initiative mobile application, we consistently
CFS application enables real-time
aligns with bringing branches to the refine customer address updates.
verification of gold appraisals
customers’ premises rather than the
conducted by branch staff.
customers coming to them.

Corporate
Overview
4 5 6
AI/RPA advancements Cross-selling Digital pledge form
We wholeheartedly embrace digital enhancements Digitising the pledge form has
advancements for heightened substantially reduced paper
Our CFS module leverages data
convenience and effectiveness. We stationery requirements through
insights to recommend personal
have introduced robotic process CFS, underscoring our commitment
loans to gold loan customers,
automation (RPA) to streamline to environmental conservation and
facilitating effective cross-selling of
the labour-intensive manual cost savings. By providing terms and
various products.
process with digital transaction conditions in vernacular languages,
reconciliation. Our deployment of digitisation enhances customer
artificial intelligence (AI) capabilities comprehension of various gold
and models extends to intrusion loan terms.
prevention and night vigilance.
These AI algorithms range from
simple customer name verification
to complex scenarios like image
model recognition.
7 9 10
Customer rewards Collection reminders CFS enhancements
and recognition and simplified payment Our core platform consistently
programmes options evolves to maintain availability,
reliability, adaptability, and data
We designed the Gold Milligram We have integrated outbound integrity. Key enhancements in
Reward programme to enhance calls for collection reminders and the past year include integration
customer loyalty and satisfaction. simplified payment options to capabilities for over-the-counter
Customers accumulate reward enhance customer convenience. (OTC) products, an application
points based on transactions, programming interface (API)
convertible into milligrams. platform for seamless integration
with third-party applications,
reinforced product and network
security, refined algorithms for
verifying customer bank accounts
8 with minimal human involvement,
robotic process automation (RPA)
Digital channel for digital repayment transaction
reconciliation, enrichment of the
expansion internal audit module, improved
We have optimised payment lead process for cross-selling
collection and customer options, and the introduction of
convenience through the deep link doorstep gold loan release.
facility. We enable easy repayments
via preferred payment options
by sending payment links to
customers’ mobiles.

T ECHNOLOG Y A ND DIG I T I S AT ION
Development of mobile applications

iMuthoot - Customers can access • Offering a user-friendly
loan calculator
Android and iOS several features on the
• Integrating bank accounts and
The latest iteration of the iMuthoot application, including: PANs seamlessly
mobile app, version 3.5, offers
• Applying for gold, home, • Facilitating utility bill payments
customers the convenience of
personal, and vehicle loans
applying for and repaying various • Allowing the online purchase
loan types, such as gold loans, home • Repaying gold, home, personal, of insurance and zero
loans, personal loans, and vehicle and vehicle loans interest products
loans, right from the comfort of their
• Conducting gold loan top-ups and • Locating the nearest
homes. We designed the upgraded
renewals from their homes Muthoot branch
mobile application to enhance the
overall customer experience by • Booking appointments • Receiving personalised
delivering a seamless omnichannel notifications and information in
• Making instant payments
experience. The iMuthoot mobile preferred languages
without registration
app users can conduct all their
digital transactions conveniently • Enhancing security through • Investing in non-
without visiting a physical branch. biometric authentication convertible debentures
methods, such as fingerprint and • Enrolling in the National Pension
face recognition Scheme (NPS)
iMuthoot on the Wear

OS (Android) platform
We launched iMuthoot on the Wear
OS (Android) platform, expanding
our digital ecosystem. This release
represented a significant milestone
for Muthoot Finance as we extended
our reach to another channel.
Features available in
iMuthoot (Android)
Wear OS include:
• Landing page with two menu
options (My Gold loans & Gold
Loan Calculator)
• Loan listings
• Loan details
• Loan calculator

Corporate
Overview
Collection mobile SalesNext

applications This mobile application strengthens
marketing initiatives by enabling on-
Our mobile-based collection
the-spot lead creation. It operates
application is a powerful tool
as a standalone system and extends
for tracking and collecting EMI
as an arm of our centralised
payments directly from customers
customer relationship management
at their doorsteps. It facilitates
(CRM) application.
real-time record-keeping of
customer interactions in the field.
This app provides significant Muthoot Online
advantages to the organisation
Muthoot Online serves as an
by optimising resource utilisation,
extension of Muthoot’s core
increasing debt recovery rates,
financial system. Seamlessly
Bingo mobile and enhancing transparency
integrated, this flexible and
throughout the process. Moreover,
application the EMI collection solution
standalone delivery channel offers
a responsive design across various
We introduced a multifunctional includes modules for agent
devices, including desktops, laptops,
mobile application to optimise onboarding, agent management,
mobiles, and tablets. Customers
lead management processes in the collection dashboards, and agent
can conveniently make online
current fiscal year. This application activity tracking.
repayments for loans, access user-
empowers branch users, customer friendly interfaces, and choose
care executives, and field agents Click-to-call from multiple payment options,
to generate leads, monitor their such as debit cards, direct debits
progress, and actively pursue This enterprise mobile application
through online banking, prepaid
leads until successful conversion. enables Muthoot Finance branch
cards, mobile wallets, and more.
Additionally, the application employees to contact customers
Customers can also perform online
provides comprehensive visibility and follow up on various campaigns.
top-ups, apply for loans, make bill
into lead movement for supervisory- The application allows branch users
payments, and avail of various
level users. to track customer interactions
transactions. Quick payment options
and maintain regular campaign
cater to unregistered customers,
follow-ups. The application features
Loan@Home call masking for customers and
streamlining transactions without
requiring login. Additionally, non-
application for employees to ensure data security.
registered users can directly repay
customers and agents loan amounts, eliminating the
Field verification need for logging in. Customers of
An enhanced version of the Loan@ Muthoot Finance can leverage this
Home service is now available An internal mobility application
application to link bank accounts
through a mobile app and web exclusively for Muthoot Finance
and PANs, apply for NCD/NPS, and
portal, allowing customers to apply employees streamlines the
purchase insurance products.
for gold loans conveniently. Once submission of field verification
verified and approved, a dedicated reports (FVRs). This application
agent promptly assists customers. empowers branch staff to submit
The process involves scheduling on-premises verification reports
a home visit appointment for a of customers in real time through
Muthoot Finance agent to meet mobility devices. This transparency
the customer. This application enables the credit management
empowers customers to obtain a division to refine portfolio strength.
gold loan without visiting a branch.
With Loan@Home, agents handle
all loan aspects, from initiation
to disbursement, while physically
present at the customer’s location.

M A R K E T ING
Focused on being a
household name
One of the primary reasons for our
success over the years has been our
ability to garner trust through our well-
sought-out marketing campaigns, which
highlight our services and showcase
our strengths and customer focus,
increasing our brand recall.

Corporate
Overview
A glimpse of the major highlights during the year
Roping in Madhuri Dixit as

brand ambassador
During the year, we were able to rope in the
immensely adored and highly-accomplished
actress Madhuri Dixit as a brand ambassador,
in addition to Amitabh Bachchan, to connect
with newer audience segments. She was
previously associated with us in our award-
winning marketing campaign ‘Muthoot Finance
Sunheri Soch Season-2’, wherein she shared our
customers’ real-life success stories, highlighting
our role and impact on people’s lives and in the
India growth story. Now, she will endorse our
wide bouquet of financial products and aid our
objective of putting idle-lying gold to use and
enabling people to achieve their dreams.
Kholiye Khushiyo ki Tijori

‘Kholiye Khushiyon Ki Tijori’ is a multimedia
marketing campaign launched on January
31, 2023, for Muthoot Finance Gold Loan to
engage potential and existing buyers and foster
an emotional connection with our customer
segment. The core message it encapsulates is
the advantages of Muthoot Finance Gold Loan,
portraying it as the key to unlocking happiness
in life. Across four distinct films, the campaign
showcases how Muthoot Finance Gold Loan fulfils
the dreams of a diverse society, resonating with
relatable scenarios. With our brand ambassador
of five years, Amitabh Bachchan, present in all
four films, it highlights Muthoot Finance Gold
Loan’s unique differentiators.

M A R K E T ING
Gold Loan Mela

The ‘Muthoot Finance Gold Loan Mela’ mega
campaign was inaugurated in Q3 FY23 and ran
between October 1, 2022, and December 31,
2022. This fresh marketing venture aimed to offer
comprehensive assistance to our zones, regions, and
branches and empower them to draw in a maximum
number of new customers for Muthoot to meet their
Q3 targets. This tactical initiative, featuring actress
Ishita Dutta, received robust promotion across
various platforms, encompassing print, outdoor,
cable TV, and digital media and offered lucrative
offers to new customers.
Gold Milligram Rewards

Programme
During the year, we introduced an innovative loyalty
programme named ‘Milligram Rewards,’ marking a
pioneering venture within the gold loan industry.
Through this unique initiative, customers can receive
guaranteed 24 carat gold on every product purchase,
each financial transaction conducted with us, and
even for successfully referring or introducing new
customers to our services.
Metro station branding

We extended our semi-naming rights agreement for
the Greater Kailash metro station and Nandanam
metro station in collaboration with the Delhi Metro
Rail Corporation and Chennai Metro Rail Limited,
respectively. Moreover, we initiated a comprehensive
rebranding effort at the Greater Kailash metro
station. These strategic endeavours, benefiting
from their prominent locations and high foot traffic,
have significantly bolstered our brand’s visibility.
They have also afforded us an excellent platform
to showcase our corporate strengths, flagship
products, and services, including our extensive
branch network, diverse business segments, and the
convenience of our gold loan-at-home service.

Corporate
Overview
‘Put your Gold to Work’ – ‘Goldman’ campaign

In October 2022, we launched a comprehensive
marketing campaign in South India featuring ‘Goldman,’
conveying the message ‘Put your Gold to Work’ for
diverse credit needs. The campaign highlighted the
effective utilisation of idle gold at home and the
versatility of gold loans. Employing a humorous
approach, we cast prominent South Indian comic figures
such as Johnny Antony, Brahmanand, Sadhu Kokila,
and Redin Kingsley to portray Goldman in Malayalam,
Telugu, Kannada, and Tamil versions, respectively.
This distinct campaign personified idle home gold into

the character ‘Goldman,’ showcasing how gold loans
cater to diverse financial requirements across different
classes and situations, offering greater convenience
than other credit alternatives. It employed real-life
scenarios like studying abroad, business needs, The campaign received widespread acclaim for its
and home improvement to illustrate its owners can unique style and message, being featured in the Best
leverage idle gold. The campaign, divided into multiple Ads of the Fortnight by Exchange4media and Impact
phases, employed a diverse media mix encompassing Magazine’s ‘Ads Impact Loved’ section. The ad also
print, cable TV, theatre, multiplex, OOH, BTL, on- garnered a highly positive response from viewers
ground activations, OTT, YouTube, various social on YouTube. Through this campaign, we successfully
media platforms, and various digital assets to amplify connected with a newer and younger target audience,
the message. demonstrating how customers can leverage gold assets
to fulfil dreams and aspirations.

E S G A PPROACH
The backbone
of our operations

Corporate
Overview
Financial inclusion
Operating through a vast network of 4700+
branches, mostly in unbanked regions, we
are dedicated to serving the needs of the
underprivileged. With over 2 lakh customers
benefiting daily, most of whom are newcomers Conduct and compliance
to formal credit, we bridge the gap for those
As a listed company, we adhere to Listing
struggling to access financial services promptly.
Regulations, ensuring Corporate Governance
Furthermore, our inclusive approach empowers
compliance. Our engaged management
individuals who might not have access to formal
submits timely detailed reports to the Board,
credit options, offering them much-needed
enhancing transparency and monitoring.
financial support. Additionally, our innovative
Emphasising compliance, we aim for minimal
products facilitate debt consolidation, enabling
regulatory interventions.
borrowers to manage multiple loans at reduced
costs, fostering greater financial stability.
ESG
approach
Employees
Our priorities encompass employee diversity,
inclusion, and development, along with
fostering positive employment practices. As a
major employment creator in the country, we Transparency with our
provide opportunities for many individuals,
serving as their first job experience. stakeholders
Our Code of Conduct promotes transparent
dealings with all stakeholders, both internal
and external.

E N V IRONME N T
Making an impact
in a green way
In this day and age, we understand the importance of
promoting green alternatives for a sustainable future. We have
been actively involved in creating awareness and supporting
green initiatives for our communities.
Distribution of steel water bottles

Muthoot Finance, as part of its CSR initiative, Government School Naganakulam in Madurai,
conducted a mass distribution of stainless steel Government School Hayathnagar in Hyderabad, and
water bottles to schools in Mangalore, Chennai, Jawahar Nagar Primary School in Secunderabad.
Madurai, Hyderabad, Mysore, and Secunderabad. This initiative was conceived to encourage eco-
This drive aimed to raise awareness about reducing friendly practices and discourage plastic bottle
plastic bottle usage. The bottles were provided to use, aligning with the company’s CSR focus on
financially disadvantaged students. The CSR managers environmental protection. The bottles were branded
in respective regions organised and managed with the message “Say No To Plastic – Save The
the distribution efforts. Schools included DKZP Environment” to raise awareness at the grassroots
Higher Primary School Mannagudda in Mangalore, level among students
Government School West Mambalam in Chennai,

Corporate
Overview
Donation of an E-Auto to an NGO for

the mentally challenged
Muthoot Finance, as part of its CSR initiative, has
generously donated an electric auto rickshaw to
Riya Foundation, an NGO that provides therapeutic
residential care for the mentally challenged in
Kulshekar, Mangaluru. This electric auto aims to
facilitate medical and emergency services for mentally
challenged individuals supported by the NGO. The key
was presented by Shri. Premananda Shetty, Mayor
of Mangalore City Corporation. The event saw the
presence of various Muthoot Finance representatives,
including Shri. Rahul Raghavan (Administrative
Manager), Shri. Pavitra Kumar (Mangalore Cluster
Manager), Smt. Monisha M K (Operations Manager),
Shri. Chandrasekhar U S (Branch Manager, Kadri), and
Shri. Prasad Kumar (CSR Manager, Mangalore Region),
along with regional coordinators and the directorial
team of Riya Foundation. The electric auto will serve the
beneficiaries during emergencies, transportation, village
visits, social engagements, and unforeseen situations.
Commissioning on-grid solar

project in Bangalore
Muthoot Finance, in collaboration with Samartha
Shakari Trust Mangalore JLV Energy, has successfully
launched a 2KW on-grid solar project for the
Government Transit Home Kapikad in Mangalore.
The inauguration ceremony was graced by Dr. Kumar
IAS - CEO, Dakshina Kannada Zilla Panchayat, along
with several dignitaries including Shri. Uday Shyam
Khandige (Regional Manager Mangalore), Prof. Hilda
Rayappan (Prajna Counseling Centre Mangalore),
Shri. Lancy Pinto (Corporator, Mangalore City
Corporation), Shri. Pavithra Kumar (CBM Mangalore
Cluster), Smt. Sunila K.V (BM Kottara), Shri. Kiran U.
Samartha Shakari Trust, and Shri. Prasad Kumar (CSR
Manager Mangalore Region) from Muthoot Finance.
Dr. Kumar IAS commended Muthoot Finance for its
proactive contribution towards energy conservation
and environmental protection through this solar grid
installation at the transit home.

E N V IRONME N T
Installation of EV charging points

We inaugurated Electric Vehicle (EV) charging stations of Muthoot Finance. As part of the company’s
at Narmada Apartments and NRI Apartment in commitment to sustainability and in alignment with
GK-II, New Delhi. This initiative aims to encourage the UN’s goal of achieving carbon neutrality by 2050,
the use of electric vehicles and promote a clean and these charging points are part of a larger plan to
green environment. The inauguration was led by install 100 EV charging points across various areas in
Shri. George M George, Deputy Managing Director Delhi under our CSR efforts.
Distribution of solar home

lighting kit
We distributed solar home lighting kits to 50 tribal
families in Mysore District on August 11, 2022, at
KKH Conventional Hall in Chowkur, Hunsur Taluk.
After assessing 600 tribal families across Mysore
District (Nagarhole, Kodagu, HD Kote, Hunsur, and
Periyapatna), we selected and provided solar home
lighting kits to 50 families in need of electricity.
Shri Shantaram Siddi, MLC and State Secretary of
Vanavasi Kalyana Karnataka, was the chief guest
and handed over the solar home lighting kits to
the tribal families.

Corporate
Overview
Donation of E-vehicle to specially

challenged individuals
Muthoot Finance, through the Muthoot Sneha
Sancharini Project, donated E-vehicles to a group
of specially challenged individuals in Bangalore,
Karnataka. Ten E-vehicles were provided to financially
disadvantaged individuals who required assistance
due to their special needs. The event was conducted
in partnership with Mount Carmel Education Society,
and the keys to the E-vehicles were handed over to
the beneficiaries by Shri. George Alexander, Deputy
Managing Director of The Muthoot Group, and
Shri. K. J. George, Hon’ble MLA of Sarvagnanagar.
Construction of a butterfly and

herbal garden
On the occasion of Environment Day, Muthoot
Finance, as part of its CSR initiative, established a
butterfly and herbal garden on the college grounds.
The week-long celebrations for Environment Day
were inaugurated by Shri. George M George,
Deputy Managing Director of Muthoot Finance,
and Rev. Father John Mangalath, Principal of De
Paul Institute of Science and Technology, during an
event at De Paul college campus. Muthoot Finance
collaborated with college students and NCC cadets
from Kalady Grama Panchayat to clean the college
premises. The company provided branded T-Shirts
to 130 students for their participation in the green
campaign. Demonstrating our commitment to
sustainability, we initiated a unique project that
repurposes plastic bottles to create eco-friendly
seating areas within the college campus.

PEOPLE
Winning through a
happy workforce
At Muthoot, we firmly believe that a happy
workforce equals a productive workforce. We
have been working tirelessly to foster a culture
of collaboration and inclusiveness that instils
pride among all our employees.
As a result of concerted efforts, we

have been certified as a ‘Great Place
to Work’ by the Great Place to Work
Institute for 2nd Year in a row in
December, 2022.

Corporate
Overview
Learning and development
Muthoot Career Development

Programme
We actively promote our employees to take up
managerial roles internally through a fast-track
advancement system. Our approach prioritises
offering growth prospects to top achievers who
display potential and the necessary behavioural skills
for tackling fresh challenges. This strategy propels
career progression and empowers individuals to
assume more senior positions within the company.
By doing so, we strategically position well-suited
individuals who embody our core performance
values. This acts as a powerful incentive, inspiring
employees to aim higher and expedite their career
ascent. Simultaneously, this guarantees a pool of
internally nurtured, high-calibre candidates who
possess expertise in our internal processes and
performance standards, making them suitable for
elevation to the next tier. Importantly, this approach
considerably reduces the typical training period
required for a new external hire in the same role.
Pathshala
We offer an internship programme called Pathshala,
endorsed by National Apprenticeship Promotion
Scheme and National Apprenticeship Training
Scheme under India’s Ministry of Skill Development
and Entrepreneurship Project. Aligned with the
government’s workforce improvement initiative,
Pathshala provides holistic training in the gold
loan sector, encompassing customer service,
gold valuation, loan processing, and our financial
products. Interns engage in hands-on projects
for practical experience and, upon programme
completion, can secure positions at Muthoot Finance
to start a successful career.

PEOPLE
Adhyayana
Our Buddy and Mentorship programme, Adhyayana,
boosts productivity, lowers turnover, and enhances
employee morale via knowledge sharing. It
develops employee skills and knowledge, elevating
the onboarding process, fostering two-way
communication, and standardising policies. This
programme ensures seamless new hire transitions,
operational consistency, and employee collaboration,
all while cultivating a valued and empowered work
environment for organisational success.
Skill development
We focus on cultivating a performance-oriented,
future-ready workplace that fosters learning, growth,
and collective success. Our robust Learning &
Development Function ensures people’s productivity
and operational compliance through two main
channels: in-person (Classroom) and E-learning
(Online). Utilising E-learning, we deliver micro-
learning units regularly, addressing current business
needs with dynamic training design and delivery.
These programmes instill the Muthoot Culture within
our workforce.
Internal Job Posting Programme

(IJP)
We offer abundant career growth within the
organisation, including cross-vertical advancement.
Our Internal Job Posting (IJP) programme
communicates openings internally, prioritising
current employees for these roles. This transparent,
employee-focused approach provides convenient
access to opportunities, motivating individuals to
explore new responsibilities, expand skills, and
enhance their careers. This strategy retains valuable
talent, ensuring a stable and motivated workforce.

Corporate
Overview
Rewards and remuneration

We motivate our employees through frequent
contests (daily, weekly, monthly, and quarterly) with
rewards like cash, gifts, and trips. Their achievements
are highlighted in our internal newsletter and
acknowledged in daily meetings. Additionally, we
have initiatives including Long Service Awards for
those with >5 years and monetary rewards for 10
years of service. Service Excellence awards recognise
branch staff with at least 2 years of service.
Employee engagement
Year-round, we arrange diverse Employee
engagement events like Rangoli contests,
Independence Day and Onam celebrations, Dandiya
night, Christmas parties, and cricket matches. These
activities promote creativity, cultural understanding,
holiday joy, and team spirit among employees,
fostering a positive work environment and boosting
morale. Our holistic engagement programme covers
personal, social, recreational, and sports activities,
creating a complete engagement ecosystem.
Creating a bond with our

employees’ families
Our family meet programme, Aarambha, significantly
strengthens bonds between employees, their
families, and the organisation. It integrates families
into the workplace, enhancing employee retention
through a family-oriented atmosphere. Involving
families promotes support and engagement,
extending tenures and stability. Aarambha cultivates
pride and emotional connections, transforming
families into brand ambassadors who share their
positive experiences. This programme fosters
enduring engagement and a profound sense of pride.

COMMUNI T Y
Winning together by
uplifting marginalised
communities
For years, we have been known for our focus on
corporate social responsibility and it continues to be Total CSR Spend
the same even today. We truly believe that our success S964.40 million
as a company is interlinked with the impact that we
have had on creating a positive impact in the lives of Total CSR beneficiaries
the communities we engage with. 0.55 million
Aashiyana Project
room, two bedrooms, a kitchen, a bathroom, and
200 homes milestone a sanitation unit. Among the beneficiaries, 13 are
We achieved a significant milestone with the widows and all are below the poverty line, currently
completion and handover of 200 homes through living in inadequate dwellings without proper
our rehabilitation initiative - Muthoot Aashiyana. sanitation facilities.
To mark this achievement, a gathering was held
for beneficiaries on July 27, 2022, at Gokulam Foundation laid for Edavanakkad
Convention Center, Kaloor, Ernakulam. The event was
inaugurated by Padma Shri Jayaram, a prominent In association with Shri. Hibi Eden MP, we conducted
actor in the South Indian film industry. The Chairman the foundation stone laying ceremony of 14 new
of The Muthoot Group, Mr. George Jacob Muthoot, Aashiyana homes in the tsunami flood-affected
presided over the event, and Mr. George Alexander community at Edavanakkad, Kochi during the year.
Muthoot, Managing Director of Muthoot Finance,
delivered the keynote address.
Partnered with Habitat for

Humanity India to build homes in
Haryana
We partnered with housing non-profit organisation
‘Habitat for Humanity India’ under their flagship CSR
initiative Aashiyana Housing Project. The aim is to
empower 20 families by constructing decent homes
adhering to government-approved engineering
standards. These houses will feature a living

Corporate
Overview
Cup of Life – Menstrual Health Campaign

In collaboration with Shri. Hibi Eden MP, IMA • Normalise discussions about menstruation
Kochi Chapter, and the District Administration, we across genders.
successfully executed a two-month-long menstrual
• Eradicate social stigma and misconceptions
health campaign in Kochi, Kerala, titled “Cup of
related to virginity and menstruation.
Life.” Through grassroots awareness and training
programmes, we raised awareness about menstrual • Conduct comprehensive training sessions by
health and distributed 100,000 menstrual cups to the medical professionals, awareness campaigns,
women of Kochi within 24 hours, securing a Guinness social experiments, and more to encourage
World Record. The company allocated ` 15 million for curiosity and learning.
this flagship CSR initiative.
Objectives of the Cup of Life

campaign:
• Introduce an environment friendly and cost-
effective menstrual hygiene product, the
Menstrual cup.
• Promote awareness about Menstrual cups as an

alternative to conventional sanitary pads.
• Distribute menstrual cups to 100,000 beneficiaries.
• Offer proper training and awareness to women.
• Foster awareness about high-quality menstrual

cups available in the market.
Muthoot Smart Anganwadi

Our unique CSR initiative, Muthoot Smart
Anganwadi, has established a modern Anganwadi
in Moolampilly, a coastal suburb of Kochi, in
collaboration with Shri. Hibi Eden MP. This initiative
benefits lower-income families in the area who
lack access to quality education due to limited
infrastructure. The project, costing `25 Lakhs,
encompasses a high-tech study room, modern
amenities, kitchen, bathroom, storeroom, and
fencing. The facility will also feature a secure
roofed play area for children.

COMMUNI T Y
Supporting sports activities

in Government Schools
We provided financial assistance to Sportz Village
Foundation to organise sports activities in five
government schools in Bangalore, benefiting 1,377
students. The initiative led to significant positive
changes in student access indicators. The launch
took place at KR Puram Government School.
Muthoot is proud to support #SportsForChange
programmes that offer opportunities for
government school children across India. This
aligns with our commitment to Sustainable
Development Goals and the child’s Right to Play
under the UN Convention of the Rights of the Child
(OHCHR).
Anti-drug campaign
Under our CSR campaign “Laharikkethire
Lakshyadeepam”, we partnered with Nallapadam,
the CSR wing of Malayala Manorama, to combat
drug issues. The initiative aimed to raise
awareness among students, promoting positive
lifestyles through sports and culture. It engaged
over 5000 students around Kochi. This flagship
campaign allocated `30 Lakhs for anti-drug efforts.
Contests, including creating newspapers and
composing anti-drug songs, engaged students.
State-level winners received prizes up to H50,000.
The campaign concluded with lighting 1 lakh lamps
in Kochi’s Marine Drive on January 17, 2023. Kerala
Chief Minister Shri. Pinarayi Vijayan inaugurated,
and Padmasree Bharath Mammootty, a prominent
actor, was the Chief Guest.

Corporate
Overview
Inauguration of M.G. George

Muthoot Memorial YMCA
Turf in Thiruvananthapuram
During the 150 th Anniversary of YMCA,
Muthoot Finance built a futsal turf at their
Rural Development Centre in Vettinadu,
Thiruvananthapuram. Funded entirely by Muthoot
Finance as a CSR Initiative, the project received a
budget of `45 lakhs. The initiative encompasses
the futsal turf’s development, premises setup,
flood light installation, and a spacious gallery for
spectators to enjoy sports.
Professional Scholarships
in Maharashtra
We awarded Muthoot M. George Professional
Scholarships and Gold Medals to students in Pune,
Maharashtra, including MBBS, B.Tech, and Nursing
students from Sangli District.
Computer Training Room

in Nagpur
We inaugurated a Computer Training Room at Zilla
Parishad School Hingna Isasani Nagpur to promote
the use and train students in using computers.

COMMUNI T Y
Financial aid for marriages

in Rajasthan
We extended financial assistance to 10 girls,
who were daughters of widowed mothers, for
their marriages in Jaipur, Rajasthan, under the
Vivahasammanam Project.
Donation to Sainik Welfare

Office in Gujarat
We donated medical mobility aids and
water dispensers to District Sainik Welfare &
Resettlement Office in Mehsana, Gujarat to
acknowledge their service.
Supply of medical
equipment in Mizoram
We provided a CBC Analyzer ERBA-360H to District
Hospital Lawngtlai, Mizoram, contributing to
healthcare enhancement.

Corporate
Overview
Woolen Sweater Donation

in Assam
We donated 56 woolen sweaters to the
underprivileged children at Vidya Rath School on
Wheels Government Project in Guwahati, Assam.
Water Cooler Installation in

West Bengal
A water cooler was installed at Titagarh
Municipality, Kolkata, West Bengal, which would
benefit ~1000 pedestrians.
Providing aid for an elderly

home in West Bengal
We donated clothes and personal care product
kits to residents of Bholananda Old Age Home in
Titagarh, Kolkata, West Bengal, benefiting around
50 senior citizens.

GOV E R N A NCE
Winning through
robust governance
Our Board of Directors plays a significant role in determining the organisation's
strategic direction, establishing effective governance, managing risks, and promising
long-term success.
George Jacob Muthoot George Alexander Muthoot George Thomas Muthoot Alexander George
Chairman & Whole Time Managing Director Whole Time Director Whole Time Director
Director
George Muthoot George George Alexander George Muthoot Jacob Abraham Chacko
Whole Time Director Whole Time Director Whole Time Director Independent Director
Jacob Benjamin Koshy Jose Mathew Ravindra Pisharody Usha Sunny

Independent Director Independent Director Independent Director Independent Director
Vadakkakara Antony George Chamacheril Abraham Mohan

Independent Director Independent Director

Corporate
Overview
George Jacob Muthoot

George Alexander Muthoot George Thomas Muthoot
Managing Director Whole Time Director
Education Education Experience
Degree in Civil Engineering from • Businessman by profession
• Qualified Chartered Accountant;
Manipal University ranked first in Kerala and 20th in
• >47 years of experience in
India in 1978
Experience managing business operations in
• Bachelor’s degree in Commerce the field of financial services
• >45 years of experience in
with a gold medal from • Sustainable Leadership Award
managing businesses in the field
of financial services Kerala University 2014 by the CSR Congress in the
Experience individual category
• Member of Kerala Builders
Forum, Trivandrum • >42 years of experience in
• Member of Confederation of Real
managing businesses in the field Alexander George
of financial services Whole Time Director
Estate Developers Association of
India (CREDAI) (Trivandrum) • Served as the Chairman of the Education
Kerala Non-Banking Finance • MBA Graduate from Thunderbird
• Member of Trivandrum Agenda
Companies’ Welfare Association University (USA)
Task Force, Trivandrum (South)
from 2004 to 2007
• Governing body member of • Advanced diploma holder in
• Former Member Secretary Business Administration from
the Charitable and Educational
of the Finance Companies
Society of Trivandrum Orthodox Florida International University,
Association, Chennai
Diocese, Ulloor, Trivandrum Miami (USA)
• President of Association of Gold
• Member of Trivandrum
Loan Companies in India Experience
Management Association
• Manages the entire business
• Active member of Confederation
• Member of Finance Committe of operations of North, East and
of Indian Industry (CII)
the of the Mar Dioscorus College West India of Muthoot Finance
of Pharmacy • CA Business Leader Award
• Former President of Indian
under Financial Services Sector
• Patron of the YMCA Trivandrum Subcontinent Club at Thunderbird
from the Institute of Chartered
University and has been a
• Member of Advisory Committee Accountants of India for 2013
member of various committees at
of the Swasthi Foundation, a non- the University
• Times of India group Business
profit organisation
Excellence Award in Customised • Vice-Chairman of the Paul George
• Former President of the Rotary Financial Services in March 2009 Global School – a jewel in the
Club of Trivandrum
crown of Muthoot Education (the
• Business Excellence Award 2012 education division of Muthoot
from Trivandrum Chamber Group)
of Commerce
• The JCI India Zone – Business

Leadership Award in 2020.

GOV E R N A NCE
Limited and Belstar Microfinance • Serving as an Independent

George Muthoot George Limited, subsidiaries of Muthoot Director at V-Guard Industries
Whole Time Director Finance Limited Limited, a listed company
Education in Kerala, engaged in the
• Served as the Chair for the
electrical and electronics
• Master’s degree from the Essec- Confederation of Indian Industry -
manufacturing business
Cornell University in Paris, France Young Indians Bangalore Chapter
in 2015 • Member on the Board of Muthoot
• Graduated in Hospitality
Vehicle & Asset Finance Limited,
Management from the • Former Finance Chair for the
a vehicle finance company in
Welcomgroup Graduate school of Entrepreneur’s Organisation
the Group operating in the State
Hotel Administration in Manipal Bangalore from 2016-2018
of Kerala
Experience • Was one among the ten Indians
• Oversees the Gold Loan &
chosen to represent India
• Has keen interest in the Remittance business in the
for the AIYD (Australia India
Hospitality sector United Kingdom
Youth Dialogue) at Sydney and
• Managing Director of Muthoot Melbourne in 2013 • Member of the Board of
Leisure and Hospitality Services Governors of Muthoot M George
• Currently serving on the Board
Private Limited, and Xandari Pearl of advisors at University of Institute of Technology
Beach Resorts Private Limited
North Carolina Kenan-Flagler
(formerly known as Marari
Beach Resorts Private Limited), a
Business School Abraham Chacko
Independent Director
Muthoot M George Enterprise
• Worked with many brands of George Muthoot Jacob Education
Whole Time Director • B. Com (Hons)
international repute both in India
and abroad Education • Post Graduate Diploma in
• Bachelor’s in law, BA.LLB (Hons), Business Management from XLRI
George Alexander from the National University of
Experience
Whole Time Director Advanced Legal Studies, Kochi
• >39 years of experience in the
Education • LLM in International Economic
banking sector
Law from the University of
• Master’s in Business Warwick, UK • Held various roles in HSBC for
Administration from University >14 years
of North Carolina Kenan-Flagler • Master’s in management from
Business School CASS Business School, London • Held the positions of Country
Manager and Executive Director
• Bachelor’s degree in Mechanical Experience at ABN AMRO Bank in UAE, Sri
Engineering from University • Oversees the operations of the Lanka and Singapore
of Kerala - TKM College Company in the States of Tamil
of Engineering • Held the position of Executive
Nadu and Kerala
Director at The Royal Bank of
Experience • In charge of the marketing Scotland for 2 years
• Takes care of operations across activities of the Company for
South India • Retired as the Executive Director
the states of Karnataka, Goa and at the Federal Bank
Telangana in India • Member on the Board of
• Heads the global operations of Belstar Microfinance Limited
The Muthoot Group in the USA and Muthoot Money Limited,
subsidiaries of Muthoot
• Serves on the Board of Asia Finance Limited
Asset Finance PLC, Muthoot
Insurance Brokers Private

Corporate
Overview
• Former Judge of High Court

Chamacheril Abraham Mohan of Kerala Ravindra Pisharody
• Former Executive Chairman
Education of the Kerala State Legal Education
• Qualified Chartered Accountant Services Authority • B. Tech in Electronics and
Electrical Communication, Indian
• 11th Rank CA Intermediate and • Former Chairman of the Indian
Institute of Technology Kharagpur
13th Rank CA Final Law Institute, Kerala Chapter
• Post-Graduate Diploma in
Experience • Former Chairman of the Advisory
Board constituted under the Management (PGDM), Indian
• Former Managing Director of J. Institute of Management, Calcutta
COFEPOSA Act and the National
Thomas & Company Pvt. Ltd., the
Security Act Experience
oldest and largest Tea Auctioneer
in the world. • Former Chairman of the Appellate • >38 years of experience across
Tribunal under the Prevention of diverse industries
• Former Director of J. Thomas
Money Laundering Act
Finance Private Limited, Tea • Corporate business leader and
Quotas Private Limited, J. Thomas • Former Chairperson of the Kerala management professional
Trading & Investments Private State Human Rights Commission
Limited, Tea Consultancy & • National, regional and global
Plantation Services (India) Private leadership roles in sales,
Limited, Muthoot Forex Limited Jose Mathew marketing, business management
and Muthoot Securities Limited Independent Director and strategy development
• Former members of the Education • Former Whole-time Director at

Chamber of Commerce and Tea Tata Motors Limited, where he
• Qualified Chartered Accountant
Trade Association. headed the commercial vehicles
Experience business unit
• Non-Executive Director of two
• Former Managing Director
other Companies. • Non-Executive Director on the
of M/s Kerala State
Boards of eight companies
• Significant experience in audits Drugs & Pharmaceutical
of Syndicate Bank, Canara Bank, Limited, a Government of • Adviser to two other companies
Union Bank of India, Cochin Kerala Undertaking
Refineries Limited, Cochin
• Former Secretary and
Shipyard Limited, FACT Limited
General Manager Finance of
and HMT Limited, among others.
M/s Kerala State Industrial
• Partner of Chartered Accountancy Enterprises, a Government of
Firm M/s. K J Anto & Co. Kerala Undertaking
• Former Management Committee
Jacob Benjamin Koshy member of Kerala Travel
Independent Director Mart Society, a private-public
association/ Society of Travel &
Education Tourism Fraternity
• Graduate in Law
• Former member of Kerala
Experience Tourism Advisory Committee
• Former Chief Justice of Patna • Managing Director of M/s
High Court Green Shore Holidays & Resorts
• Represented public sector Private Limited (Rainbow
undertakings like Cochin Port Cruises) Alleppey
Trust, FACT, Central Bank of • CNBC AWAAZ Award for
India, Indian Oil Corporation,
Sustainability in Responsible
Bharat Petroleum Corporation
Tourism in 2013
Limited and various private
sector undertakings like Tata Tea
Limited, Hindustan Lever Limited
and Harrison Malayalam Limited

GOV E R N A NCE
• Adjunct/Visiting Faculty in
Usha Sunny Vadakkakara Antony George several Management Institutes,
including XLRI, Jamshedpur,
Education Education Loyola Institute of Business
• Qualified Cost Accountant • Bachelor’s degree in Mechanical Administration, Chennai and
Engineering with a Post Graduate International Institute of
• Master’s Degree in Commerce
Diploma in Management Management Development (IMD),
from University of Kerala
Lausanne, Switzerland
• Associate of the Indian Institute
Experience of Banking and Finance • Executive Chairman of Thejo
• >32 years of experience in Indian Engineering Limited, Chennai
• Holder of “Advanced Certificate
and Overseas banking industry
in Corporate Governance” from • Non-Executive Director at Belstar
• Headed the Cost Accounting INSEAD, Paris Microfinance Limited, Chennai
Division of Kerala State
• “Board Director Diploma with • Chairman, Advisory Board of St.
Drugs & Pharmaceuticals
Distinction” from International Isabel’s Hospital, Chennai
Limited, Government of
Institute of Management
Kerala undertaking • Member, Advisory Board, Stella
Development, Lausanne
• Worked with Standard Chartered Maris College, Chennai
• Corporate Director Certificate
Bank, Mashreq Bank PSC • Member, Advisory Council,
from Harvard Business School,
and Indian Overseas Bank in
USA, an Advanced Certificate in Madras School of Social Work
diversified roles in Corporate &
Corporate Governance
Investment Banking
Experience
• Director of Securaplus Safety
Private Limited, a company • >42 years of experience in the
engaged in the import and corporate field in both public and
wholesale distribution of Personal private sectors
Protective Equipment • Past Chairman of Equipment
• Partner in Vasudeva Vilasam Leasing Association of India
Herbal Remedies, Kerala, one of
• Fellow of All India Management
the pioneers in the practice
Association and Institute
of Directors

Corporate
Overview
Executive Directors
Eapen Alexander K.R. Bijimon

Executive Director Executive Director
Education Education
• MBA from the Fuqua School of • BSc in Science
Business at Duke University, USA
• LLB degree from Mahatma
• MSc. in International Political Gandhi University, Kerala
Economy from London School of
• MBA from Cochin
Economics, UK
University, Kerala
• B.A. Economics (Hons) from St.
• Fellow Member of the Institute of
Xavier’s College, Mumbai
Chartered Accountants of India,
Experience New Delhi
• Currently he heads Muthoot • Associate of Indian Institute of
Homefin (India) Limited and Banking and Finance, Mumbai
Muthoot Money Limited, wholly
owned subsidiaries of Muthoot • Fellow Member of Certified
Finance Limited Management Accountants,
Institute of Sri Lanka
• He is also a Director in CRIF High
Mark Credit Information Services Experience
Private Limited, a RBI licensed • Joined Muthoot group in 1996
credit information bureau
• Possesses >27 years of
• Worked with ICRA Limited, a experience in financial services
leading credit rating agency
in India

AWA R DS A ND ACCOL A DE S
Laurels won
during the year
1 2
Alexander George Muthoot, who holds the Muthoot Finance's distinguished integrated
position of Joint Managing Director at The marketing initiative, Sunheri Soch, achieved a
Muthoot Group, was honored with the esteemed remarkable feat by securing two Gold awards at
Chanakya Award – 2022 in recognition of the e4m Golden Mikes Award 2022. The campaign
his Responsible Leadership of the Year. This was honored with the Gold award for the Best
recognition was presented during the Public Use of Branded Content (Effectiveness) and also
Relations Council of India (PRCI) 16th Global received the Gold award for the Best Use of Radio
Communication Conclave. in an Integrated Media Plan (Innovation).
3 4
Muthoot Finance was also prestigiously awarded In the latest TRA's Brand Trust Report for the
“The Best of Bharat Award” at exchange4media's year 2023, Muthoot Finance has once again
Pride of India Brands 2022. secured a ranking, marking the 7th consecutive
time that it achieved this esteemed recognition.

Corporate
Overview
5 6
Muthoot Finance's Sunheri Soch Season 2 has The Muthoot Finance Sunheri Soch Season
been honored with the 'Best Digital Brand Video' 2 Radio Campaign has received a Bronze
award at the Afaqs Media Brand Awards. award in the category of 'Best Use of Celebrity
Endorsement' at the ACEF Global Customer
Engagement Awards 2023.
7 8
Muthoot Finance was honoured with the CSR Muthoot Finance was honoured with the
Journal Excellence Award 2022 for their Cup 9th National CSR Times Award 2022 in the Silver
of Life Project in the Innovation and Corporate Category for their prominent CSR initiative
Leadership in Healthcare category. The award "Muthoot Aashiyana," focusing on sustainable
was presented to Shri. George M George, Deputy development.
Managing Director of Muthoot Finance, by
Shri. Eknath Shinde, Hon’ble Chief Minister
of Maharashtra, at the 5th Edition of the CSR
Journal Excellence Awards 2022 held at National
Stock Exchange (NSE), BKC, Mumbai.

Report of the Board of Directors
Dear Shareholders,
Your Board of Directors is pleased to share with you the 26th Annual Report of Muthoot Finance Limited (“Company”)
enumerating the business performance along with the Audited Financial Statements (standalone and consolidated) for the
financial year ended March 31, 2023.
1. Financial Summary
The summarized standalone and consolidated results for the Company with the previous year’s figures are given in the
table below:
I in Millions
Standalone Consolidated
Particulars Year Ended Year Ended Year Ended Year Ended
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Total Income 1,05,437.48 1,10,983.93 1,19,750.05 1,22,381.63
Total Expenses 58,773.22 57,890.39 70,522.25 68,279.75
Profit Before Tax 46,664.26 53,093.54 49,227.80 54,101.88
Tax expense 11,928.95 13,550.50 12,530.14 13,788.64
Profit for the year 34,735.31 39,543.04 36,697.66 40,313.24
Equity 2,10,619.28 1,83,445.72 2,16,657.52 1,87,857.24
Total Liabilities 5,15,578.86 5,22,101.16 5,84,831.68 5,75,307.50
Total Assets 7,26,198.14 7,05,546.88 8,01,489.20 7,63,164.74
2. Dividend 3. Transfer to Reserves

Your Directors, considering the good performance and Your Board of Directors has transferred an amount of
strong growth seen in the financial year 2022-23 had I 6,947.06 millions to the statutory reserve maintained
declared an interim dividend of I 22 per equity share in under Section 45 IC of the Reserve Bank of India Act, 1934.
its board meeting held on April 06, 2023 (220% of face Post transfer of profits to reserves, your Board proposes
value). The dividend payout amounted to I 8,831.86 to retain I 1,05,130.05 millions in the Retained Earnings.
million representing 25.43% of profit after tax for the
year. The Board has decided to plow back the remaining
4. Company’s Performance
profit after tax for business activities.
During the Financial Year 2022-23, your Company

The Dividend distribution policy containing the achieved a net profit of I 34,735.31 millions for the
requirements mentioned in Regulation 43 A of the year ended March 31, 2023 as compared to I 39,543.04
Securities and Exchange Board of India (Listing millions for the year ended March 31, 2022, a decline
Obligations and Disclosure Requirement) Regulations, of 12.15%, mainly on account of impact of low rate
2015 (“SEBI Listing Regulations”) is available gold loan schemes. Profit before tax was at I 46,664.26
on the website of the Company at https://www. millions for the year ended March 31, 2023 as compared
muthootfinance.com/sites/default/files/2020-08/ to I 53,093.54 millions. Total Income has declined from
Policy%20on%20Dividend%20Distribution.pdf The I 1,10,983.93 millions for the year ended March 31,2022
list of unpaid dividend is available on the Company’s to I 1,05,437.48 millions for the year ended March 31,
website at https://www.muthootfinance.com/transfer- 2023, which is mainly due to the decrease in Interest
of-shares. Shareholders are requested to check the said Income of the Company. Interest income of the Company
list and if any dividend due to them is remaining unpaid decreased to I 1,03,686.11 millions from the previous
in the said list. Shareholders can approach the Company year’s interest income of I 1,09,560.28 millions. Loan
or Registrar and Transfer Agent of the Company for the Assets Portfolio of the Company increased by I 51,565.92
release of unclaimed dividends. millions during the year reaching I 6,32,097.68 millions

Statutory
Reports
as on March 31, 2023, as against I 5,80,531.76 millions Investor Education and Protection Fund
as on March 31, 2022. The Return on Average Loan During the financial year 2022-23, the Company has
Asset stood at 5.93% in FY 2022-23 as against 7.24% in transferred the unclaimed dividends of I 7,81,428
FY 2021-22. Interest yield was 17.70% as compared to to Investor Education and Protection Fund (“IEPF”).
20.06% in FY 2021-22. Net Interest Margin was 11.38% Further, 2,980 equity shares on which the dividends
as compared to 13.03% in FY 2021-22. The Company were unclaimed for seven consecutive years were
remitted to exchequer I 13,192.86 millions as taxes. transferred to IEPF during the financial year 2022-23 as
per the requirements of IEPF Rules.
5. Share Capital
No claim will lie on Company on account of the dividend
During the financial year, no preferential issue of
after the dividend is transferred to IEPF.
shares with differential rights as to dividend, voting as
otherwise was carried out by the Company. The Company
has also not carried out any buyback of its equity shares 6. Resource Mobilization
during the financial year under review.
(a) Non-Convertible Debentures:
Your Company has successfully completed the five
Employee Stock Options
Issuances of Non-Convertible Debentures through Public
During the financial year, your Company allotted Issue during FY 2022-23 raising I 13,233.59 million. The
1,02,965 equity shares of the face value of I 10/- each company has raised I 33,958 millions through Private
under Muthoot ESOP 2013 pursuant to the exercise of Placement of Non-Convertible Debentures during the
1,02,965 stock options at an exercise price of I 50/- each financial year.
by the employees.
Subordinated Debts represent long-term source of funds
The disclosures as required under Securities and
for the Company and the amount outstanding as on 31st
Exchange Board of India (Share Based Employee March, 2023 stood at I 971.32 millions. Subordinated
Benefits and Sweat Equity) Regulations, 2021 read with Debts qualify as Tier II capital under the Non-Banking
SEBI Circular CIR/CFD/POLICY CELL/2/2015 dated Financial Company- Systemically Important Non‑
16th June 2015 is attached to this report as Annexure 1 Deposit taking Company and Deposit taking Company
and is also available on the website of the Company at (Reserve Bank) Directions, 2016.
https://www.muthootfinance.com/esop-disclosure.
Please refer note 46 of Notes forming part of Standalone
Financial Statements for further disclosures on ESOPs. (b) Bank Finance
The Company does not have any scheme to fund its Bank Finance remains an important source of funding
employees for the purchase of shares of the Company. for your Company. Commercial Banks continued their
support to your Company during Financial Year. As
A certificate from the Secretarial Auditor of the Company of 31st March, 2023, borrowings from banks stood at
certifying that the ESOP scheme is implemented in I 2,92,487.65 millions as against I 2,73,870.92 millions
accordance with the Securities and Exchange Board of in the previous year.
India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021, would be placed at the Annual General
(c) External Commercial Borrowings
Meeting for inspection by members.
Your Company has outstanding Senior Secured Notes
The Employee Stock Option Scheme is in compliance with of 4.40% USD 550 millions issued in March 2020 for
the Securities and Exchange Board of India (Share Based a period of 3 ½ years falling under Regulation 144A /
Employee Benefits and Sweat Equity) Regulations, 2021 Regulation S of the US Securities Act, 1933 as on March
and there have been no material changes to this plan 31, 2023. These Notes are listed in the International
during the Financial Year 2022-23. Securities Market of the London Stock Exchange.

7. Credit Rating The Regional Audit Offices exercise field-level control

The Company has debt credit ratings as below: over the branches through onsite visits and online audit
systems. The field-level Auditors report to Regional
Domestic Credit Ratings: Audit offices who in turn share their findings with the
Credit Audit & Inspection Department at the Registered Office
Rating Instruments Ratings of the Company.
Agency
CRISIL Commercial Paper CRISIL A1+ The Audit Committee of the Board of Directors is the apex
Subordinated Debts CRISIL AA+/Stable Audit Authority of the Company. Under the present Audit
Non-Convertible Debentures CRISIL AA+/Stable Architecture, the Internal Audit Department reports
ICRA Commercial Paper [ICRA] A1+ to the Audit Committee regarding significant audit
Short Term Bank Borrowings [ICRA] A1+ findings and also preventive and corrective measures
Long Term Bank Borrowings ICRA AA+(Stable) to protect the interests of the Company. The audit
Subordinated Debts ICRA AA+(Stable) committee undertakes an evaluation of the adequacy
Non-Convertible Debentures ICRA AA+(Stable) and effectiveness of internal control systems. It also
oversees the implementation of audit recommendations
especially involving risk management measures.
International Credit Ratings:
Credit Rating Agency Ratings In addition to reviewing the internal control systems put
Fitch Ratings BB(Stable) in place by the Audit & Inspection Department, the Audit
S&P Global Ratings BB(Stable) Committee also imparts guidance and crucial directions
Moody’s Investor Service Ba2(Stable) for the up-gradation of systems and controls on an
ongoing basis. At present, the Audit system prevalent in
the Company is a completely autonomous function and
8. Internal Audit and Internal Financial Control
built on the best corporate governance framework.
Over the years Company has evolved a robust, proper,
and adequate internal audit system in keeping with Reference is invited to Note 50 of Notes forming part
the size of the Company and its business model. Your of the standalone financial statements contained in
Company has developed well documented internal audit the annual report regarding frauds committed by
and control system for meticulous compliance from all employees/customers of the Company which are dealt
layers of the Company. The control system ensures that with according to Reserve Bank of India guidelines and
the Company’s assets are safeguarded and protected. are in nature of operation related frauds due to nature of
The audit system also takes care to see that revenue business of the Company. The company has taken or is in
leakages and losses to the Company are prevented and the process of taking disciplinary/ legal action against
our income streams are protected. The control system such employees/customers.
enables reliable financial reporting.
The Company has a well-structured Audit & 9. Human Resources

Inspection department to perform timely and frequent As at March 31, 2023, the company had 27,273 employees
internal audits to evaluate the adequacy of systems on its rolls at various levels of organizational structure.
and procedures and also to evaluate the status of At Muthoot group, we promote our top performers to
compliance with the Company’s guidelines and other managerial positions through fast track promotion. This
statutory requirements. The department is manned gives them growth opportunities and new challenges.
by a team of over 1000 dedicated personnel who are This also helps us to have role-fit resources who are
constantly engaged in safeguarding your Company’s experts in our internal processes and performance
assets, ensuring the quality of assets pledged, and also values. This reduces the training time and costs for
evaluates the adequacy of risk management systems at new joiners. Muthoot Finance is certified ‘Great Place
its operating units. In keeping with the huge network to Work’ for two years in a row, reflecting its dedication
and geographic outreach of the operating units spread to creating a positive and supportive workplace for its
across the length and breadth of the country, the audit employees. The company values employee satisfaction
functions have been decentralized through the setting up and engagement, and strives to maintain and improve
of Regional Audit offices in important Regional centers. the standards that earned it the recognition.

Statutory
Reports
10. Marketing & Promotion Initiatives d. “The Campaign - Kholiye Khushiyon Ki

It has been our conscious effort over a long period of time Tijori”
to bring about greater social inclusion by supporting and This multimedia marketing campaign for Muthoot
enabling the underserved. Our marketing and branding Finance Gold Loan was launched on 1st January
initiatives not only communicate our services but also 2023, with the objective of engaging with potential
leverage its strengths to create greater brand equity and as well as existing buyers and create an emotional
enhance brand imagery, on a continuous basis to achieve bond with them, to spur growth in Q4 of FY2022‑23.
greater brand recall.
The key takeaway message Kholiye Khushiyon Ki
In FY2022-23, the marketing and branding initiatives Tijori, is a sum-up of Muthoot Finance Gold Loan’s
were focused on creating strong brand visibility and advantages that are almost like the key to unlocking
closer engagement with people to generate top quality happiness in one’s life.
leads and significant business impact. Some of the
initiatives include the following:
e. “Muthoot Finance Sunheri Soch Season-2”
Madhuri Dixit has in the recent past narrated
a. “Goldman Campaign - Put your Gold to inspirational true stories of real-life Muthoot
work” Finance customers in our award-winning
Muthoot Finance launched a 360 degree marketing marketing campaign ‘Muthoot Finance Sunheri
campaign in South India in October 2022, where Soch Season-2’, which illustrated the unique role of
‘Goldman’ was featured and the campaign drove our brand in the lives of people and in taking India
the message ‘Put your Gold to Work’ for various forward. Our brand resonates with her on-screen
credit needs. The campaign highlighted how legacy and off-screen image, which makes her a
idle gold at home can be put to use and how gold natural and cultural fit for our brand.
loans are all weather loans. The campaign used
a comic approach and Goldman was played by
Awards & Recognitions:
some of the leading South Indian comic faces like
Johnny Antony, Brahmanand, Sadhu Kokila, and During the year, your company has received the
Redin Kingsley across four languages - Malayalam, following awards and recognitions as hereunder:
Telugu, Kannada, and Tamil respectively.
a. “The Best of Bharat Award” at
exchange4media’s Pride of India Brands 2022.
b. “Gold Milligram Reward Program”
Muthoot Finance launched this new and unique b. Muthoot Finance’s prestigious integrated
loyalty program called ‘Muthoot Finance Gold marketing campaign Sunheri Soch won
Milligram Rewards’ which is the first of its kind in two Golds at the e4m Golden Mikes Award
the gold loan industry. 2022 for the Best Use of Branded Content
(Effectiveness) and the Best Use of Radio in an
Integrated Media Plan (Innovation).
c. “Muthoot Finance Gold Loan Mela”
This mega initiative “Muthoot Finance Gold Loan c. “Great Place to Work” by the Great Place to
Mela”, for the branches was launched in Q3 FY 23 Work Institute for 2nd Year in a row in Dec’22.
from 01st Oct 2022 to 31st Dec 2022. The objective
of this new marketing initiative was to provide full d. Your Company has been ranked for the year
support to all our Zones, Regions, and Branches 2023 as per the recently released TRA’s Brand
so that they could attract and canvas maximum Trust Report. This is for the 7th time in a row
new to Muthoot customers and achieve their Q3 that Muthoot Finance has been awarded this
targets. This new tactical campaign with Ms. Ishita prestigious distinction.
Dutta was promoted heavily on all BTL & ATL
mediums including TV, Print, Outdoor, Cable TV e. Muthoot Finance Sunheri Soch Season 2 wins
and Digital platforms. ‘Best Digital Brand Video‘ by Afaqs Media
Brand Awards.

11. Capital Adequacy of the Company. The audited financial statements of

Your Company’s Capital Adequacy Ratio as of March 31, each of its subsidiaries are also available on the website
2023, stood at 31.77% of the aggregate risk-weighted of the Company at https://www.muthootfinance.com/
assets on the balance sheet and risk-adjusted value subsidiaries. The above documents will also be available
of the off-balance sheet items, which is well above the for inspection at the Registered Office of the Company
regulatory minimum of 15%. Out of the above, the Tier during business hours.
I capital adequacy ratio stood at 31.01% and the Tier II
capital adequacy ratio stood at 0.76%. During the year under review, the Board of Directors
reviewed the affairs of the subsidiaries. In accordance
with Section 129 (3) of the Act, we have prepared the
12. Public Deposits consolidated financial statements of the Company
The Company is a Systemically Important Non-Deposit which forms part of the Annual Report. The statement
Taking NBFC and has not accepted any public deposits. containing the salient features of the financial statement
of your Company’s Subsidiaries in Form AOC 1 is annexed
to Standalone Financial Statements of the Company as
13. RBI Guidelines
required under Rule 5 of The Companies (Accounts)
The Company continues to comply with the Master Rules, 2014.
Direction for Non-Banking Financial Company –
Systemically Important Non-Deposit taking Company There are no other companies that have become or
and all the applicable laws, regulations, guidelines, etc. ceased to be Subsidiaries/ Associates/ Joint Ventures of
prescribed by RBI from time to time. The Company the Company during the Financial Year 2022-23.
has been identified for categorisation as NBFC-Upper
Layer under Scale Based Regulation (SBR), a Revised There has been no material change in the nature of
Regulatory Framework for NBFCs as per the list issued by business of subsidiary companies during the financial
RBI in its Press Release 2022-2023/975 dated September year 2022-23.
30, 2022. In compliance with the requirement of Scale
Based Regulatory Framework read with Notification
The Board of Directors of your Company has
dated April 11, 2022 for Compliance Function and formulated a policy on material subsidiary, which is
Role of Chief Compliance Officer (CCO) – NBFCs, the displayed on the website of the Company at https://
Company has appointed Mr. T.M. Saithumuhammed as www.muthootfinance.com/sites/default/files/2020-
Chief Compliance Officer of the Company for a period of 0 8/147 2 5 61 5 6 8 p o l i c y % 2 0 o n % 2 0 m a t e r i a l % 2 0
3(three) years with effect from April 01, 2023. subsidiary.pdf
Your Company has complied with all the applicable As on March 31, 2023, Company did not have any
regulations prescribed by the Reserve Bank of India material subsidiary.
from time to time. Please refer note 52, 53, 54, and 55 of
Notes forming part of Standalone Financial Statements
for additional disclosures required under RBI Guidelines Financial Performance & position of
applicable to the Company. Subsidiaries
a. Asia Asset Finance PLC:

14. Subsidiaries/ Associates/ Joint Ventures Asia Asset Finance PLC (AAF), a Company listed in
As on March 31, 2023, your Company had seven Colombo Stock Exchange, is a subsidiary of your
subsidiaries namely Asia Asset Finance PLC, Muthoot Company from December 31, 2014. AAF, where
Homefin (India) Limited, Muthoot Insurance Brokers your Company holds 72.92% of equity capital, is a
Private Limited, Belstar Microfinance Limited, Muthoot registered Financial Company with Central Bank of
Money Limited, Muthoot Asset Management Private Sri Lanka and is mainly engaged in Vehicle Finance
Limited and Muthoot Trustee Private Limited. Your and Hire Purchase Activities. The Company which
Company’s subsidiaries have been contributing to has also started a business relating to lending
the overall growth of your Company during the year. against the collateral of gold jewellery and
As required under Section 136 of the Act, the audited microfinance is presently contributing a significant
financial statements, including the consolidated financial part of loan portfolio and income. AAF has
statements of your Company are available on the website operations across Sri Lanka with 75 branches as on

Statutory
Reports
March 31, 2023, AAF has made considerable progress in its business. Its major financial parameters for Financial
Year 2022-23 are as follows:
Profit Before Profit After Total Outside
Parameters Total Income Equity Total Assets
Tax Tax Liabilities
Amount in INR (in millions)LKR/ 1,423.20 85.22 69.98 751.81 6,245.63 5,493.83
INR as on 31.03.2023 – 0.24970;
Average Exchange Rate of
Financial Year 2022-23 - 0.236950
Amounts in LKR (in millions) 6,006.34 359.64 295.34 3,010.84 25,012.54 22,001.70
AAF increased its loan portfolio during the year by 22.23% at LKR 21,200.52 millions. Total Income for FY 23 stood
at LKR 6,006.34 millions as against previous year total income of LKR 3,181.73 millions. It generated a profit after
tax of LKR 295.35 millions during FY23 as against previous year profit after tax of LKR 118.00 millions.
b. Muthoot Homefin (India) Ltd:

M/s. Muthoot Homefin (India) Ltd (MHIL), a registered Housing Finance Company licensed by National Housing
Bank is a wholly owned subsidiary of your Company. Its major financial parameters for Financial Year 2022-23 are
as follows:
Profit Before Total Outside
Parameters Total Income Profit After Tax Equity Total Assets
Tax Liabilities
Amount in INR 1,548.11 140.66 103.98 4,574.67 12,110.58 7,535.91
(in millions)
MHIL’s loan portfolio stood at I 14,380.83 millions, a decrease of 2.16% during the year mainly on account of
stabilisation as well as reshaping of its business strategies post the covid pandemic. Total income for Financial Year
2022-23 stood at I 1,548.11 millions as against previous year total income of I 2,143.85 millions. It achieved a profit
after tax of I 103.98 millions in Financial Year 2022-23 as against previous year profit of I 84.04 millions.
c. Muthoot Insurance Brokers Private Limited:

Muthoot Insurance Brokers Private Limited (MIBPL), is an unlisted Private Limited Company holding a license to
act as Direct Broker from Insurance Regulatory and Development Authority of India (IRDA) since 2013. MIBPL is a
Wholly- Owned Subsidiary Company of your Company. Its major financial parameters for Financial Year 2022-23 are
as follows:
Tax Liabilities
Amount in INR 677.68 606.54 463.78 1588.10 1625.21 37.11
(in millions)
MIBPL generated a First year premium collection amounting to I 4,903.25 millions during Financial Year 2022-23
as against I 3,268.99 in the previous year. It generated a Profit after Tax of I 463.78 millions during Financial Year
2022-23 as against I 276.44 millions in the previous year.
d. Belstar Microfinance Limited:

M/s. Belstar Microfinance Limited (BML) is a micro finance Company. At end of the Financial Year 2022-23, your
Company holds 56.97% of the equity capital of BML. Its major financial parameters for Financial Year 2022-23 are
as follows:
Tax Liabilities
Amount in INR 10,379.15 1,693.07 1,303.25 10,922.99 62,269.01 51,346.02
(in millions)

BML grew its loan portfolio during Financial Year 2022-23 by 41.86% reaching I 61,925.24 millions. It achieved
a profit after tax of I 1,303 millions during Financial Year 2022-23 as against previous year profit after tax of
I 451.29 millions.
e. Muthoot Money Limited

M/s. Muthoot Money Ltd (MML), a registered Non-Banking Finance Company licensed by Reserve Bank of India is a
Wholly- Owned Subsidiary Company of your Company. Its major financial parameters for Financial Year 2022-23 are
as follows:
Tax Liabilities
Amount in INR 564.01 3.40 2.40 1,038.00 4,342.20 3,304.20
(in millions)
MML grew its loan portfolio during Financial Year 2022-23 by 86.91% during the year reaching I 3,870.20 millions
Total income for Financial Year 2022-23 stood at I 564.01 millions as against previous year total income of
I 455.58 millions. It achieved a profit of I 2.41 millions in Financial Year 2022-23 as against previous year loss of
I 65.72 millions.
f. Muthoot Asset Management Private Limited

Your Company has incorporated a wholly owned subsidiary Muthoot Asset Management Private Limited (“MAMPL”)
which is yet to commence commercial operations. Its major financial parameters for Financial Year 2022-23 are
as follows:
Tax Liabilities
Amount in INR 62.40 62.10 46.46 1,141.27 1,141.33 0.05
(in millions)
g. Muthoot Trustee Private Limited

Your Company has incorporated a wholly owned subsidiary Muthoot Trustee Private Limited (“MTPL”) which is yet
to commence commercial operations. Its major financial parameters for Financial Year 2022-23 are as follows:
Tax Liabilities
Amount in INR 448.28 333.73 272.02 10,218.56 10,244.56 26.00
(in millions)
15. Particulars Of Loans, Guarantees, or 16. Annual Return

Investments Under Section 186 of Act In accordance with the provisions of Section 92(3) read
Pursuant to Section 186(11) (a) of the Act read with with Section 134(3) (a) of the Act, the Annual Return of
Rule 11(2) of the Companies (Meetings of Board and its the Company is hosted on the website of the Company at
Powers) Rules, 2014, the loan made, guarantee given or https://cdn.muthootfinance.com/themes/bartik/pdf/
security provided in the ordinary course of business Annual-Return-2023.pdf
by a NBFC registered with RBI are exempt from the
applicability of the provisions of Section 186 of the Act. 17. Consolidated Financial Statements
As such, the particulars of loans and guarantees have not
The audited consolidated financial statements of the
been disclosed in this Report.
Company along with its subsidiaries AAF, MHIL, BML,
MML, MAMPL, MTPL and MIBPL prepared in accordance
During the year under review, the Company has invested
with the IndAS to comply with the Accounting Standards
surplus funds in various securities in the ordinary
specified under Section 133 of the Act, read with Rule 7
course of business. For details of the investments of the
of the Companies (Accounts) Rules, 2014 and the relevant
Company, refer to Note 9 of the financial statements.
provisions of the Act, is provided in the Annual Report.

Statutory
Reports
18. Risk Management For details of the transactions with related party entered
Your Company has a well-defined risk management into in the ordinary course of business on an arm’s length
framework in place. The risk management framework basis, refer to Note 39 to the financial statements.
works at various levels across the enterprise. These levels
form the strategic defense cover of the Company’s risk The Board of Directors of your Company has put in place
management. The Company has a robust organizational a policy for related party transactions (Policy on Related
structure for managing and reporting on risks. Party Transactions and Materiality of Related Party
Transactions), which has been approved by the Board of
Your Company has constituted a Risk Management Directors. The policy provides for identification of RPTs,
Committee of the Board which is authorized to monitor necessary approvals by the Audit Committee/ Board /
and review risk management plan and risk certificate. Shareholders, reporting and disclosure requirements
The Committee is also empowered, inter alia, to review in compliance with the Act and provisions of the SEBI
and recommend to the Board modifications to the Risk Listing Regulations. Policy is available on the website
Management Policy. Your Company has developed of the Company at https://www.muthootfinance.com/
and implemented a Risk Management Policy which is sites/default/f iles/2022-02/muthoot-f inance-rpt-
approved by the Board. The Risk Management Policy, policy-v5_0.pdf
inter alia, includes identification of risks.
All contracts executed by the Company during the
financial year, with related parties, were on arm’s
19. Corporate Social Responsibility & Business length basis and in the ordinary course of business. All
Responsibility Committee such related party transactions were entered into in
The Company’s CSR policy is committed towards CSR accordance with the Policy on Related Party Transactions
activities as envisaged in Schedule VII of the Act. The and Materiality of Related Party Transactions of
Details of CSR policy of the Company are available on the the Company.
website of the Company at https://www.muthootfinance.
com/sites/default/files/pdf/CSR_Policy_May_2021.pdf. Prior omnibus approval was obtained for related party
The Annual Report on CSR activities as required under transactions, under Section 188 (1) of the Act, which
Companies (Corporate Social Responsibility Policy) are of repetitive nature and entered in the ordinary
Rules, 2014 is attached to this report as Annexure 2. course of business and at arm’s length. All related party
The details of the ongoing CSR projects/ programmes/ transactions were placed before the Audit Committee
activities are included in the CSR Report. for review and approval.
Details of the Corporate Social Responsibility and All transactions or arrangements with related parties
Business Responsibility Committee are provided referred to in Section 188 (1) of the Act, entered into
separately in the Corporate Governance Report annexed during the year were on arm’s length basis or were in
to the Board’s Report. the ordinary course of business or with approval of
the Audit Committee. During the year, your Company
had not entered into any contract / arrangement
20. Business Responsibility and Sustainability
/ transaction with related parties which could be
Report
considered material in accordance with the Policy on
Regulation 34 of the SEBI Listing Regulations mandates Related Party Transactions and Materiality of Related
the inclusion of the Business Responsibility and Party Transactions. Further, there were no material
Sustainability Report (“BRSR”) as part of the Annual related party transactions that required approval of
Report for top 1000 listed entities based on their market shareholders as required under Chapter IV of SEBI
capitalization. Pursuant to Regulation 34(2)(f) of the Listing Regulations. Form AOC 2 is attached to this
Listing Regulations, the BRSR is annexed to this report report as Annexure 4.
as Annexure 3.
22. Audit Committee

21. Particulars Of Contracts or Arrangements
Your Company has constituted an Audit Committee in
made with Related Parties
accordance with the requirements of the Companies
All the related party transactions were entered into Act, 2013, RBI directions, and SEBI Listing Regulations.
in the ordinary course of business on an arm’s length Details on Audit committee, terms of reference and
basis. Hence, no disclosure in Form AOC-2 is necessary.

meetings appear on the Report on Corporate Governance Ms. Usha Sunny was appointed as an Independent
annexed to this report. All recommendations of Audit Director on the Board on November 30, 2020, for a period
Committee were accepted by your Board during the of 3 years and the first term of office of Ms. Usha Sunny
financial year 2022-23. as an Independent Director on the Board is expiring
on November 29, 2023. The Board of Directors of the
Company, on the recommendation of the Nomination
23. Vigil Mechanism
and Remuneration Committee, has thought it fit to
The Company has established a Vigil Mechanism/ re‑appoint Ms. Usha Sunny as an Independent Director
Whistle Blower policy to enable Directors, and for the second term. Hence, the Board recommends
Stakeholders, including individual employees and their the appointment of Ms. Usha Sunny as an Independent
representative bodies to report, in good faith, unethical, Director for a second consecutive term till the 31st AGM
unlawful or improper practices, acts, or activities. The of the Company.
said mechanism ensures that the whistleblowers are
protected against victimization/ any adverse action Cessation
and/ or discrimination as a result of such a reporting
The term of office of Justice Jacob Benjamin Koshy as
and provides direct access to the Chairman of the
Independent Director on the Board of the Company
Audit Committee in exceptional cases. The Company
is expiring at the ensuing Annual General Meeting.
hereby affirms that none of its personnel have been
The Board places on record its sincere appreciation
denied access to the Audit Committee. The whistle
and gratitude to Justice Jacob Benjamin Koshy for
blower policy is available at website of the Company at
the guidance and support extended during the two
https://www.muthootfinance.com/vigil-mechanism .
consecutive terms of directorship in the Company.
24. Listing Directors Liable to retire by rotation

Equity Shares of your Company are listed on the National Mr. George Alexander Muthoot and Mr. George Jacob
Stock Exchange of India Ltd and BSE Limited. Non- Muthoot, Directors of the Company retire by rotation at
Convertible Debentures issued by the Company through the ensuing Annual General Meeting and being eligible,
public issues and Private Placements are listed on BSE offers themselves for reappointment.
Ltd and certain Non- Convertible Debentures issued by
the Company through Private Placements are listed on Your Board and the Nomination and Remuneration
the National Stock Exchange of India Ltd. Your Company Committee has evaluated the eligibility criteria under
has paid applicable listing fees to Stock Exchanges. RBI guidelines, the Act and Listing Regulations, of all
directors seeking appointment / re-appointment at the
Senior Secured Notes issued by the Company are listed ensuing Annual General Meeting and has recommended
on the International Securities Market of London the appointment / re-appointments. Your Board believes
Stock Exchange. that the proposal for appointment / re-appointment
of Directors will have the support of shareholders.
Necessary disclosures as required under the SEBI
25. Changes in Directors and Key Managerial
Listing Regulations and the Act are provided in the
Personnel
notice calling the Annual General Meeting.
Appointments
The brief profiles of Directors seeking re-appointment
In order to comply with the Corporate Governance
are also available on the website of the Company at
requirements of SEBI Listing Regulations and the Act,
https://www.muthootfinance.com/our-directors
your Board proposes to appoint Mr. Joseph Korah as
Independent Director of the Company subject to the
All the Directors of the Company have confirmed
approval of the shareholders in the upcoming Annual
that they satisfy the ‘Fit and Proper’ Criteria as
General Meeting. Mr. Joseph Korah is an experienced IT
prescribed under Chapter XI of Reserve Bank of India
professional with a demonstrated history of working
Master Direction- Non-Banking Financial Company-
in the information technology and services industry.
Systemically Important Non-Deposit taking Company
Mr. Joseph Korah is a consulting professional skilled in
and Deposit Taking Company (Reserve Bank) Directions,
Global Delivery, IT Strategy, Management, Pre-sales and
2016, as amended, and that they are not disqualified
Business Intelligence. A detailed profile of Mr. Joseph
from being appointed/continuing as Directors in terms
Korah is provided in the Notice of the AGM.
of Section 164(2) of the Act.

Statutory
Reports
During the year under review, there were no changes 28. Policy on Appointment and Remuneration
in the Key Managerial Personnel appointed pursuant to Of Directors and Performance evaluation of
Section 203 of the Companies Act, 2013. Details of Senior Board, Committees and Directors
Management Personnel of the Company are provided
in the report on Corporate Governance attached to the a) Policy on Appointment and Remuneration Of
Board’s Report. During the year under review, there Directors
were no changes in the Senior Management Personnel in
Board of Directors of your Company, on the
the Company. recommendation of Nomination and Remuneration
Committee, has formulated a policy for selection,
appointment and remuneration of the directors, senior
26. Meetings of the Board
management personnel as required under Section 178(3)
During the Financial Year 2022-23, your Board of of the Act. The policy is available on the Company’s website
Directors met seven times on April 18, 2022, May 26, at the weblink https://www.muthootfinance.com/sites/
2022, August 06, 2022, August 12, 2022, November default/files/2020-08/1452753862Nomination%20
10, 2022, February 6, 2023, March 9, 2023. Details of and%20Remuneration%20Policy.pdf
various meetings of the Board are given in the Corporate
Governance Report which is a part of this report. Terms of reference of the Nomination and Remuneration
Committee and other relevant details of Nomination and
27. Declaration from Independent Directors Remuneration Committee are provided in the Corporate
Governance Report circulated along with this report.
The Independent Directors have submitted necessary
disclosures that they meet the criteria of independence
as provided under Section 149(6) of the Act and b) Performance evaluation of Board, Committees
Regulation 16 (1) (b) of the SEBI Listing Regulations. A and Directors
statement by Managing Director confirming receipt of In compliance with the regulatory requirements, the
this declaration from Independent Directors is annexed Board carried out an annual evaluation of its own
to this report as Annexure 5. In the opinion of the Board, performance, its Committees, and of the individual
there has been no change in the circumstances which Directors based on criteria and framework adopted
may affect their status as Independent Directors of the by the Board and in accordance with regulations. The
Company and the Board is satisfied of the integrity, details of training, appointment, resignation, and
expertise, and experience (including proficiency in retirement of Directors, if any, are dealt with in the report
terms of Section 150(1) of the Act and applicable rules of Corporate Governance. Brief details of profile of each
thereunder) of all Independent Directors on the Board. director appear in the Annual Report of the Company.
Further, in terms of Section 150 read with Rule 6 of the
Companies (Appointment and Qualification of Directors)
Rules, 2014, as amended, Independent Directors of the c) Independent Directors Meeting
Company have included their names in the data bank During the year, a meeting of Independent Directors was
of Independent Directors maintained with the Indian held on February 05, 2023 as required under the Act and
Institute of Corporate Affairs. in compliance with the requirements under Schedule IV
of the Act and SEBI Listing Regulations, and discussed
During the year under review, the non-executive and deliberated matters specified therein.
directors of the Company had no pecuniary relationship
or transactions with the Company other than the sitting
d) Details of Remuneration/ Commission from
fees, commission, if any and reimbursement of expenses
Subsidiaries
incurred by them for the purpose of attending the
meetings of the Board or Committees of the Company. None of the Whole Time Directors or Managing Director
has received any remuneration or commission from any
Your Company has also received undertaking and of the subsidiaries of the Company during the financial
declaration from each director on fit and proper criteria year-2022-23.
in terms of the provisions of Non-Banking Financial
Company - Systemically Important Non-Deposit taking 29. Corporate Governance Report
Company and Deposit taking Company (Reserve Bank)

Your Company has complied with the Corporate
Directions, 2016 (“RBI NDSI Master Directions, 2016”)
Governance norms as stipulated in Chapter IV of SEBI

Listing Regulations read with RBI Circular: DOR.ACC. The Company continued its focus on various digital
REC.No.20/21.04.018/2022-23 dated April 19, 2022. transformation initiatives during the year providing
As per Regulation 34 of SEBI Listing Regulations and a great customer experience, improved business
aforementioned RBI circular, the detailed report on efficiencies, ease of operations, and effective
Corporate Governance is attached to this Report as risk management.
Annexure 6.
A few of the digital initiatives undertaken by the
Company include:
30. Management Discussion and Analysis
Statement
Management Discussion and Analysis detailing the Online gold audit
industry developments, segment wise/ product wise Gold Audit is the systematic process through which
performance and other matters is attached to this MFIN ensure the customer gold is safe and secure at the
Report as Annexure 7. branches. This digital eye of CFSS application helps to
have real time gold verification process of the appraisal
executed at the branch by the branch staff.
31. Environmental, Social, and Governance
(“ESG”)
The Board has instituted an Environmental, Social Gold Unlocker
and Governance Committee (“ESG Committee”) to Customer conveyance is the primary focus of IT division
discharge its oversight responsibility on matters related in Muthoot group. By introducing the new gold unlocker
to organization-wide ESG initiatives, priorities, and option, customers can avail new gold loan staying
leading ESG practices. Details of the constitution of the comfortably at their residence. Customers can place
ESG Committee and its terms of reference are provided the request, receive the notification, traceability of the
in the Report on Corporate Governance. agent and the status of the loan request using the mobile
application. This new application ecosystem covering
the digital foot print and the CFSS integrations, helps the
32. Conservation of energy, technology
customers to avail the loan easily even without visiting
absorption, foreign exchange earnings and
to the branch. This is been built considering the concept
outgo:
of branch will be visiting to the customer premises
The information pursuant to Section 134(3) (m) of the rather customer walks into the branch.
Act read with the Companies (Accounts) Rules, 2014 is
as follows:
AI/RPA enrichments
We constantly embrace the digital upgrades for easiness
a) Conservation of energy
and effectiveness. Introduction of RPA (Robotic Process
Your Company being a Non-Banking Finance Company, Automations) in the areas of bank reconciliation, and
has no activities involving conservation of energy. Digital transaction reconciliation ease out and stream
However, your Company has taken adequate measures line the laborious manual reconciliation process. AI
for conservation of energy and usage of alternative capabilities and the AI models are getting introduced in
source of energy, wherever required. the areas like intrusion prevention, night vigilance etc.
AI algorithms are introduced in the simple areas like
b) Technology Absorption customer name verification to the complex scenarios
like image model recognitions.
Your Company being a Non-Banking Finance Company,
has no activities involving adoption of any specific
technology. However, your Company has been in the Digital pledge form
forefront in implementing latest information technology Pledge form is an important document for the customers
and tools towards enhancing our customer convenience. and Muthoot Finance. By fully digitalizing the pledge
form option, CFSS is reducing the paper stationary
Initiatives taken by the Company in information requirement. This shows the commitment of the
technology for improved business efficiency, ease of organization to reduce the deforestation and also save
operation, improved risk management practice and the cost on printing.
for providing best stakeholders experience:

Statutory
Reports
Customer R&R programs SalesNext

Milligram reward program is introduced to improve This mobile application enables us to strengthen the
the customer loyalty and satisfaction. Based on the marketing initiatives by allowing lead creation on
transaction details, customers reward points will be the spot; it works as standalone system and acts as an
computed and allow the customers to cover the reward extended arm of our centralized CRM application.
points to the Milligram of gold.
Muthoot online web application
Digital Channel addition Muthoot Online is the extended arm of Muthoot Core

Improved the payment collection and customer Financial Services System. It is a flexible and standalone
convenience using the deep link facility. By sending the delivery channel that is seamlessly integrated with our
link to the customer mobile, customer is enjoying the Core Financial Services System. This web application
benefit of easy repayment just by taping on the link and is designed to be responsive across various devices,
pay through favorite payment options. including desktops, laptops, mobiles, and tablets,
allowing customers to conveniently make online

Collection reminders through OBD calls and easy repayments for their loans.
payment option for interested customers is also added
for better convenience of customers. Google Work Space
Muthoot Finance adopted Google Workspace as its cloud-
Mobile Applications Development based productivity suite. Google Workspace provides
our company with a number of advantages, including:
iMuthoot - Android & iOS
The latest version of iMuthoot mobile App Version 3.5 • Impeccable security: Google Workspace is a highly
allows customers to conveniently apply for and repay secure platform that meets the stringent security
various types of loans, including Gold loan, Home Loan, requirements of financial institutions.
Personal Loan, and Vehicle Loan, right from the comfort
• Improved productivity and efficiency: Google
of their homes. This improved mobile application
Workspace’s suite of productivity apps helps
aims to enhance the overall customer experience by
our company employees to be more productive
providing a seamless Omni channel experience. Users
and efficient.
of the iMuthoot mobile App can enjoy the convenience
of conducting all their digital transactions without the Seamless communication and collaboration: Google
need to visit a branch. Workspace’s collaboration tools make it easy for our
employees to communicate and collaborate with each
iMuthoot On wear OS other, regardless of their location.
We have launched iMuthoot on the Wear OS (Android) c) Foreign exchange earnings and outgo
platform. The release of our first Wear OS app marks an
Particulars I in Million
important moment for Muthoot Finance, as it adds one
Total Foreign Exchange earned 6.11
more channel to our digital ecosystem.
Total Foreign Exchange expended 4,884.76
Loan@Home application for Customers and Agents

The enhanced version of Loan@Home service is a digital 33. Audits
offering available through a mobile app and web portal,
allowing customers to apply for a gold loan conveniently. a) Statutory Audit under Section 139 of the Act
The Statutory Audit Report issued by M/s Elias George
Click-to-Call & Co (FRN: 000801S) and M/s Babu A. Kallivayalil &
This is an enterprise mobile application for Muthoot Co. (FRN: 005374S), Joint Statutory Auditors of the
Finance Branch employees to contact customers and Company, on the financial statements of the Company
do follow-up for various campaigns. This application for the year 2022-23 forms part of the Annual Report.
enables the branch users to track the customer
interactions and allows regular follow up of various b) Secretarial Audit under Section 204 of the Act
campaigns / initiatives. The application ensures data M/s KSR & Co., Company Secretaries LLP, Coimbatore
security by enabling call masking for both customers was appointed as Secretarial Auditors of the Company
and employees. for the financial year 2022-23 pursuant to Section

204 of the Act. The Secretarial Audit report issued by 34. Reporting on Sexual Harassment of Women
the Secretarial Auditors is annexed to this report as at Workplace (Prevention, Prohibition and
Annexure 8. Redressal) Act, 2013
The Company has zero tolerance for sexual harassment
c) Annual Secretarial Compliance Report
at workplace and has adopted a Policy on Prevention,
The Company has undertaken an audit for the financial Prohibition and Redressal of Sexual Harassment
year 2022-23 for all applicable compliances as per at workplace as per the requirement of the Sexual
SEBI Regulations and Circulars/ Guidelines issued Harassment of Women at workplace (Prevention,
thereunder. The Annual Secretarial Compliance Report Prohibition & Redressal) Act, 2013 (‘POSH Act’) and
was submitted to the stock exchanges within 60 days Rules made thereunder.
from the end of the financial year.
With the objective of providing a safe environment, the
d) Cost records and Cost Audit
Company has constituted Internal Committee to redress
Maintenance of cost records and requirement of cost complaints received regarding sexual harassment. All
audit as prescribed under the provisions of Section employees – permanent, contractual, temporary and
148(1) of the Act are not applicable for the business trainees are covered under this Policy.
activities carried out by the Company.

Details of cases reported to Internal Complaints
e) Auditors’ certificate on Corporate Governance Committee during the financial year 2022-23 are
The Auditors’ certificate confirming compliance with as under:
the conditions of corporate governance as stipulated
under the SEBI Listing Regulations for financial Number of complaints pending at the beginning of the 0
year 2022-23 is provided along with the Report on financial year 2022-23
Corporate Governance. Number of complaints filed during the financial year 5

2022-23
Number of complaints disposed of during the 5
f) Secretarial Auditors’ certificate on ESOP financial year 2022-23
The secretarial auditors’ certificate on the Number of complaints pending as on end of the 0
implementation of share based schemes in accordance financial year 2022-23
with the Securities and Exchange Board of India
(Share Based Employee Benefits and Sweat Equity)
35. Personnel
Regulations, 2021, will be made available at the AGM for
inspection electronically. The Disclosure required under the provisions of Section
197 of the Act read with Rule 5 (1) of the Companies
g) Certificate on Non-Disqualification of Directors (Appointment and Remuneration of Managerial
Certificate on Non-Disqualification of Directors issued Personnel) Rules, 2014 is annexed to this report as
by M/s Sunil Sankar & Associates, Practising Company Annexure 9. The statement containing particulars of
Secretaries is enclosed along with the Report on employees as required under Section 197(12) of the
Corporate Governance. Act read with Rule 5(2) and 5(3) of the Rules forms
part of the Director’s Report. Further, the Director’s
h) Explanations or comments by the Board on Report and the Accounts are being sent to the Members
qualification, reservation or adverse remark or excluding the aforesaid statement. In terms of Section
disclaimer on audits for financial year 2022-23 136 of the Act, the said statement will be open for
There are no qualifications, reservation or adverse inspection upon request by the Members. Any Member
remark or disclaimer in the audit reports issued under interested in obtaining such particulars may write to
Section 139 and Section 204 of the Act for financial year the Company Secretary
2022-23.
36. Significant and material Orders passed by
i) Information Systems Audit
Regulators or Courts or Tribunals
As per the requirements of the Master Direction of
There are no significant and material orders passed
the Information Technology Framework for the NBFC
by the regulators or courts or tribunals, which would
Sector, an Information Systems Audit was carried out for
impact the going concern status of your Company and its
the financial year 2022-23 by M/s Information Security
future operations.
Audit and Assurance Pvt Ltd.

Statutory
Reports
37. Material Changes and Commitments under the Insolvency and Bankruptcy Code, 2016 during
affecting the financial position of the the financial year 2022-23 for recovery of outstanding
Company between the end of the financial loans against any customer being Corporate Debtor.
year to which Financial Statements relate
• The details of difference between amount of the valuation
and the date of the report
done at the time of one time settlement and the valuation
No material changes and commitments affecting the done while taking loan from the Banks or Financial
financial position of your Company occurred between the Institutions along with the reasons thereof- Not Applicable.
end of the financial year to which Financial Statements
relate and the date of this report. • There has been no material change in the nature of business
of the Company during the year under review.
38. Directors’ Responsibility Statement • During the year under review, there were no instances

Pursuant to Section 134(5) of the Act, the Board of Directors, of any frauds reported by the Statutory Auditors under
to the best of its knowledge and ability, confirm that - section 143(12) of the Act.
(a) in the preparation of the annual accounts, the applicable

41. Acknowledgement
Indian Accounting Standards had been followed. There
were no material departures from applicable Indian Your Directors thank the Company’s stakeholders
Accounting Standards; including investors, customers, banks, financial
institutions, rating agencies, debenture holders, debenture
(b) they have selected such accounting policies and applied trustees and well-wishers for their continued support
them consistently and made judgments and estimates during the year. Your Directors place on record their
that are reasonable and prudent so as to give a true and appreciation of the contribution made by the employees of
fair view of the state of affairs of the Company at the end your Company and its subsidiaries at all levels. Your Board
of the financial year and of the profit of the Company for reassures that in these challenging times, your Company
that period; will continue to support you and your family at all levels.
(c) they have taken proper and sufficient care for Your Company’s consistent growth was made possible by
the maintenance of adequate accounting records their hard work, solidarity, cooperation and support. The
in accordance with the provisions of this Act for Board sincerely expresses its gratitude to Reserve Bank of
safeguarding the assets of the Company and for India, Securities and Exchange Board of India, Ministry of
preventing and detecting fraud and other irregularities; Corporate Affairs, and Stock Exchanges including various
officials there at for the guidance and support received
they have prepared the annual accounts on a going
(d) from them from time to time.
concern basis;
Your Directors mourn the loss of life due to COVID-19
(e) they have laid down internal financial controls to be pandemic and are deeply grateful and have immense
followed by the Company and such internal financial respect for every person who risked their safety and life
controls are adequate and operating effectively. to fight this pandemic.
(f) they have devised proper systems to ensure compliance
42. Forward Looking Statements
with the provisions of all applicable laws and that such
systems were adequate and operating effectively. This Report(s) contains certain forward-looking
statements within the provisions of listing agreements
39. Disclosure pursuant to Part A of Schedule V and hence reasonable caution is to be exercised by
of SEBI Listing Regulations stakeholders while relying on these statements.
Disclosure pursuant to Part A of Schedule V read with For and On Behalf of the Board of Directors
Regulation 34(3) and 53(f) of SEBI Listing Regulations is
Sd/- Sd/-
attached as Annexure 10 of this report.
George Jacob Muthoot George Alexander Muthoot
Chairman & Whole Time Director Managing Director
40. Others DIN: 00018235 DIN: 00016787
• The Company has complied with Secretarial Standards Place: Kochi,
issued by the Institute of Company Secretaries of India on Date: August 11, 2023
Board Meetings, Annual General Meetings and Dividend. Registered Office:
2nd Floor, Muthoot Chambers,
• The Company, in the capacity of Financial Creditor, has not Opposite Saritha Theatre Complex,
filed any application with National Company Law Tribunal Banerji Road, Kochi – 682 018

ANNEXURE- 1
Disclosure pursuant to the provisions of Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021 as at March 31, 2023
i) elevant disclosures in terms of the accounting standards prescribed by the Central Government in terms of section 133
R
of the Companies Act, 2013 (18 of 2013) including the ‘Guidance note on accounting for employee share-based payments’
issued by ICAI or any other relevant accounting standards in that regard from time to time are disclosed in Note 46 of
Notes forming part of Standalone Financial Statements.
ii) Description of each ESOS that existed at any time during the year, including the general terms and
conditions of each ESOS :-
ESOP 2013 - Tranche 2 ESOP 2013 - Tranche 3
Particulars
Grant A Grant B Grant A
1 Date of shareholder’s approval 27.09.2013 27.09.2013 27.09.2013
2 Number of options granted 4,56,000 3,80,900 3,25,000
3 Exercise price (Rs.) 50/- 50/- 50/-
4 Maximum term of options granted 8 years 8 years 8 years
5 Source of shares Primary Primary Primary
6 Vesting period 1-5 years 2-6 years 1-5 years
7 Vesting requirements In a graded manner over In a graded manner over In a graded manner over
a 5 year period with a 6 year period with a 5 year period with
10%,15%,20%,25% and 10%,15%,20%,25% and 10%,15%,20%,25% and
30% of the grants vesting 30% of the grants vesting 30% of the grants vesting
in each year commencing in each year commencing in each year commencing
from the end of 12 months from the end of 24 months from the end of 12 months
from the date of grant from the date of grant from the date of grant
8 Options outstanding at the beginning of the 1,860 3,000 15,000
year
9 Options granted during the year - - -
10 Options forfeited/lapsed during the year 1,860 - -
11 Options vested during the year - - -
12 Options exercised during the year - 3,000 15,000
13 Number of shares arising as a result of - 3,000 15,000
exercise of option
14 Money realised by exercise of options (Rs.) - 1,50,000 7,50,000
15 Loan repaid by the Trust during the year Not applicable Not applicable Not applicable
from exercise price received
16 Options outstanding at the end of the year - - -
17 Options exercisable at the end of the year - - -

Particulars
Grant A Grant B Grant A Grant B
1 Date of shareholder’s approval 27.09.2013 27.09.2013 27.09.2013 27.09.2013
2 Number of options granted 3,90,400 7,28,300 2,48,200 3,42,900
3 Exercise price (Rs.) 50/- 50/- 50/- 50/-
4 Maximum term of options granted 8 years 8 years 8 years 8 years
5 Source of shares Primary Primary Primary Primary
6 Vesting period 1-5 years 2-6 years 1-5 years 2-6 years
7 Vesting requirements In a graded In a graded In a graded In a graded
manner over a 5 manner over a 6 manner over a 5 manner over a 6
year period with year period with year period with year period with
10%,15%,20%,25% 10%,15%,20%,25% 10%,15%,20%,25% 10%,15%,20%,25%
and 30% of the grants and 30% of the grants and 30% of the grants and 30% of the grants
vesting in each year vesting in each year vesting in each year vesting in each year
commencing from commencing from commencing from commencing from the
the end of 12 months the end of 24 months the end of 12 months end of 24 months from
from the date of grant from the date of grant from the date of grant the date of grant

Statutory
Reports

Particulars
8 Options outstanding at the 22,520 43,645 64,925 55,915
beginning of the year
9 Options granted during the year - - - -
10 Options forfeited/lapsed during 3,400 10,115 3,790 21,250
the year
11 Options vested during the year - 30,630 53,970 19,775
12 Options exercised during the year 2,120 22,235 49,335 11,275
13 Number of shares arising as a 2,120 22,235 49,335 11,275
result of exercise of option
14 Money realised by exercise of 1,06,000 11,11,750 24,66,750 5,63,750
options (I)
15 Loan repaid by the Trust during Not applicable Not applicable Not applicable Not applicable
the year from exercise price
received
16 Options outstanding at the end of 17,000 11,295 11,800 23,390
the year
17 Options exercisable at the end of 17,000 11,295 11,800 9,350
the year
iii) Other details are as under:
18 Directors and Employees to whom options were granted during the year :-
i) Director(s) including Managing Director and Senior Managerial personnel Nil
ii) Other employee who receives a grant in any one year of option amounting to 5% or more None
of option granted during the year
iii) Identified employees who were granted option during the year, equal to or exceeding 1% None
of the issued capital (excluding outstanding warrants and conversions) of the company
at the time of grant
19 Variations of terms of Options Nil
20 Diluted EPS I 86.52/- per Share
21 i) Method of calculation of employee compensation cost Fair value method
ii) Difference between the employee compensation cost so computed at i) above and the Not Applicable
employee compensation cost that shall have been recognised if it had used the fair value
of the options
iii) The impact of this difference on profits and on EPS of the company Not Applicable
22 Weighted Average exercise price of options whose:- Grant A Grant B
i) Exercise price either equals market price (Rs.) or Nil Nil
ii) Exercise price greater than market price (Rs.) or Nil Nil
iii) Exercise price less than market price (Rs.) 50/- 50/-
23 Weighted Average fair price of options whose:- Grant A Grant B
i) Exercise price either equals market price (Rs.) or Nil Nil
ii) Exercise price greater than market price (Rs.) or Nil Nil
iii) Exercise price less than market price (Rs.)
Tranche 1 70.95/- 71.20/-
Tranche 2 128.48/- 126.92/-
Tranche 3 159.37/- NA
Tranche 4 220.05/- 217.46/-
Tranche 5 409.38/- 406.32/-

Impact of fair value method on net profit and on EPS :-

Particulars As at 31.03.2023
Net Profit as reported (I In lacs) 3,47,353.12
Proforma Net Profit based on fair value approach (I In lacs) 3,47,353.12
Basic EPS as reported (I) 86.54/- per Share
Basic EPS (Proforma) (I) 86.54/- per Share
Diluted EPS as reported (I) 86.52/- per Share
Diluted EPS (Proforma) (I) 86.52/- per Share
In computing the above information, certain estimates and assumptions have been made by the management which has
been relied upon by the auditors.
iv) Description of the method and significant assumptions used to estimate fair value: -
The Securities Exchange Board of India (SEBI) has prescribed two methods to account for employee stock options; (1)
the intrinsic value method; (2) the fair value method. The company adopts the fair value method to account for the
stock options it grants to the employees. Intrinsic value is the amount, by which the quoted closing market price of the
underlying shares as on the date of grant exceeds the exercise price of the option. The fair value of the option is estimated
on the date of grant using Black Scholes options pricing model with following assumptions:-
Year ended 31-03-2023
Particulars ESOP 2013 - Tranche 2 ESOP 2013 - Tranche 3
i) Exercise Price per share (I) 50/- 50/- 50/-
ii) Vesting Period (Years) 1-5 2-6 1-5
iii) Price of Share in market at the time of Grant of options (I) 184.30/- 184.30/- 219.05
iv) Weighted Average fair price of options (I) 128.48/- 126.92/- 159.37/-
v) Expected Volatility (%) 53.96 53.96 34.50
vi) Expected Life of the options granted (years) 1.5 -5.5 2.5-6.5 1.5 -5.5
vii) Weighted Average Contractual Life of the options granted (years) 4 5 4
viii) Risk Free Interest rate (% p.a) 8.26-8.35 8.24-8.32 7.45-7.60
ix) Expected Dividend Yield (%) 3.26 3.26 2.74
Year ended 31-03-2023

Particulars ESOP 2013 - Tranche 4 ESOP 2013 - Tranche 5
i) Exercise Price per share (I) 50/- 50/- 50/- 50/-
ii) Vesting Period (Years) 1-5 2-6 1-5 2-6
iii) P rice of Share in market at the time of Grant of 280.35/- 280.35/- 473/- 473/-
options (I)
iv) Weighted Average fair price of options (I) 220.05/- 217.46/- 409.38/- 406.32/-
v) Expected Volatility (%) 36.98 36.98 40.24 40.24
vi) Expected Life of the options granted (years) 1.5 -5.5 2.5-6.5 1.5 -5.5 2.5-6.5
vii) Weighted Average Contractual Life of the options 4 5 5 6
granted (years)
viii) Risk Free Interest rate (% p.a) 6.91-7.41 7.08-7.47 6.16-6.59 6.27-6.67
ix) Expected Dividend Yield (%) 2.14 2.14 1.27 1.27
Note :
- It is assumed that the options will be excercised within the exercise period.
- Volatility is estimated from the actual movement in share prices of the company for one year preceding the grant
date. This historical volatility is the annualised standard deviation of the continuously compounded rates of daily
stock returns.
- The risk-free rate is equated to the yield on Government of India securities corresponding to the expected life of
options in each option series.
- The market value per share is equated with the market value as observed from the adjusted closing market price on
grant date of listed shares of the Company.

Statutory
Reports
ANNEXURE- 2
Annual Report on CSR Activities
1 Brief outline of CSR Policy of the Company
(i) The objective of CSR Policy of Muthoot Finance Limited is to articulate Muthoot Finance Limited’s core philosophy
of social responsibility, to define the areas and to indicate activities chosen by Muthoot Finance Limited to impact
the society with its efforts towards Corporate Social Responsibility and to define the governance & monitoring
framework for ensuring effectiveness of the Policy.
(ii) To create a social impact nationwide by constantly giving back to the community by identifying and facilitating
growth in areas which are less privileged.
(iii) To create change where it is needed most - among India’s less privileged and to demonstrate our beliefs through an
integrated social program that seeks social inclusion.
(iv) At Muthoot Finance Limited, our Corporate Social Responsibility policy will carry out it’s activities in the economic
development, society progress and environmental hazards with the and core objective of improving quality of life.
It has been a constant endeavour of the Company to rightfully follow our vision and values up keeping it with good
corporate governance to meet the expectations of our customers, employees, shareholders and society at large.
(v) The Board will have an oversight on the adherence to this Policy. The Corporate Social & Business Responsibility
Committee (“CSR Committee”) of the Board, comprising a minimum of three Directors and at least one of whom will
be an Independent Director of the Company, shall assist the Board in the overall governance of the Policy and the CSR
Programmes pursuant thereto. The CSR Committee shall work under the superintendence and control of the Board.
(vi) The Company’s CSR policy is committed towards CSR activities as envisaged in Schedule VII of the Companies Act,
2013. The Details of CSR policy of the Company and CSR projects are available on the website of the Company at
www.muthootfinance.com
2 Composition of CSR Committee
Number of meetings
Number of meetings
of CSR Committee
Name of Directors Designation in the Committee of CSR Committee
attended during
held during the FY
the FY
Justice (Retd) Jacob Benjamin Koshy Chairman 3 3
Jose Mathew Member 3 3
George Alexander Muthoot Member 3 3
George Muthoot George* Member - -
Chamacheril Mohan Abraham* Member - -
* George Muthoot George and Chamacheril Mohan Abraham were inducted into the Committee on 10 November 2022
3 Weblink where composition of CSR Committee, CSR Policy and CSR Projects are disclosed
a) CSR Committee: https://www.muthootfinance.com/board-committees
b) CSR Policy: https://www.muthootfinance.com/sites/default/files/pdf/CSR_Policy_May_2021.pdf
c) CSR Projects: https://www.muthootfinance.com/other-disclosure
4 Details of Impact Assessment, if any carried out

Impact assessment report prepared by Rajagiri College of Social Sciences is available on the website of the Company at
https://www.muthootfinance.com/other-disclosure

5 Details of the amount available for set off in pursuance of sub-rule (3) of Rule 7 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the
financial year, if any
Amount Available for set- Amount required to be
Financial Year off from the preceeding set off for the financial
financial years (in INR) year, if any (in INR)
Nil Nil Nil
6 Average net profit of the Company as per Section 135 (5) (K in crores): 4,787.27
7 (a) Two percent of the average net profit of the Company as per Section 135 (5) (K in crores):
95.75
(b) Surplus arising out of the CSR projects or programmes of the previous financial year
(K in crores): NIL
(c) Amount required to be set off for the financial year, if any (K in crores): NIL
(d) Total CSR obligation for the financial year (7d=7a+7b+7c) (K in crores): 95.75
8 (a) CSR amount spent or unspent for the financial year.

Amount Unspent (K in crores)
Total amount spent for the financial Total amount transferred to Unspent Amount transferred to any fund specified under Schedule
year (K in crores) CSR Account as per section 135(6). VII as per second proviso to section 135(5).
Amount Date of transfer Name of the Fund Amount Date of transfer
96.44 Nil NA NA Nil NA

(b) Details of CSR amount spent against ongoing projects for the financial year:
-1 -2 -3 -4 -5 -6 -7 -8 -9 -10 -11
Reports
Item from the Amount Amount spent Amount transferred to Mode of

Statutory
Sl. Name of the list of activities Local Area Location of the Project allocated for in the current Unspent CSR Account for the Implementation Mode of Implementation -
No. Project in Schedule VII (Yes/No) project duration the project financial Year project as per Section 135 (6) - Direct Through Implementing Agency
to the Act (K in crores) (K in crores) (K in crores) (Yes/No)
CSR Registration
State District Name
Number
NA NA NA NA NA NA NA NA NA NA NA NA NA
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
-1 -2 -3 -4 -5 -7 -8
Item from the list of Amount spent Mode of
Sl. Local area Mode of Implementation - Through
Name of the Project activities in Schedule VII Location of the project for the project Implementation
No. (Yes/ No) Implementing Agency
to the Act (K in crores) - Direct (Yes/No)
CSR Registration
State District Name
Number
1 Muthoot Aashiyana Project Disaster Management Yes Kerala Ernakulam, Idukki 0.02 Yes
2 Disaster Management Disaster Management Yes All India 0.05 Yes
Programme - Covid 19
3 Cyclone and others Disaster Management Yes Tamil Nadu & Thiruvarur, Delhi 0.04 Yes
Delhi
4 Swatchh Bharat Initiative/ Environmental Yes All India Kerala, Karnataka, 0.68 Yes
Solar lamps/solar panel/canal protection Tamil Nadu & Delhi
cleaning/Waste Management/
harithatheeram, etc
5 Supporting other organisations Improving quality of Yes All India 1.52 Yes
to improve the infrastructure life
facilities of the organisation
6 Food Distribution, one time Poverty Alleviation Yes All India 2.26 Yes
support etc
7 Innovative startup program Promoting and Yes Kerala Ernakulam 0.16 Yes
supporting technology
and innovations
8 Take over of Schools/Colleges Promotion of Yes Kerala Ernakulam 50.93 No Muthoot CSR00018564
Education Educational Trust
(Charitable Trust
having 80G Regn)
9 Starting Schools for students Promotion of Yes Tamil Nadu Kanchipuram 0.06 No Muthoot CSR00020775
from low income family, Education Educational Trust
Adoption of Schools/Colleges (Tamil Nadu)
(Charitable Trust

having 80G Regn)
10 Construction of seminar halls, Promotion of Yes All India 12.13 Direct & St. Georges CSR00007408
infrastructure development, Education Indirect Education Society
79
educational support, etc (Charitable Society
having 80G Regn)
-1 -2 -3 -4 -5 -7 -8
80
Item from the list of Amount spent Mode of
Sl. Local area Mode of Implementation - Through
Name of the Project activities in Schedule VII Location of the project for the project Implementation
No. (Yes/ No) Implementing Agency
to the Act (K in crores) - Direct (Yes/No)
CSR Registration
State District Name
Number
11 Sports Promotion Activity Promotion of sports Kerala Ernakulam 0.71 Yes
12 Snehashraya Project Improving quality of Yes Kerala, All Kerala, 0.38 Yes
life Andhra Bangalore,
Pradesh, Coimbatore,
Muthoot Finance Limited

Karnataka, Chennai, Hyderabad,
Tamil Nadu, Sangli
Maharashtra
13 Poor Patients' Medical Improving quality of Yes South India South India 9.39 Direct & Muthoot M George CSR00008030
Assistance life Indirect Foundation
(Charitable Trust
having 80G Regn)
Muthoot M George CSR00008030
Charitable Trust
(Charitable Trust
having 80G Regn)

14 Skill Development Programme Employment enhancing Yes Tamil Nadu Chennai 0.23 No Hand in Hand CSR00001853
vocational skills, social (Charitable Trust
business projects having 80G Regn)
15 Cup Of Life Promoting gender Yes Kerala Ernakulam 1.52 Yes
equality and
empowering women
16 Muthoot Vivahasammanam Promoting gender Yes Jaipur, 0.42 Yes
Project equality and Maharashtra,
empowering women Delhi, Tamil
Nadu
17 Scholarships to Students Promotion of Yes All India 12.80 Direct & St. Georges CSR00007408
Education Indirect Education Society
(Charitable Society
having 80G Regn)
18 Muthoot Snehasammanam, Improving quality of Yes South India South India 1.22 Yes
Muthoot Snehasancharini life
Project, livelihood projects,
Total 94.50
nutrition kits, etc
(d) Amount spent in Administrative Overheads (K in crores): 1.94

(e) Amount spent on Impact Assessment, if applicable (K in crores): NA
(f) Total amount spent for the financial year (8f=8b+8c+8d+8e) (K in crores): 96.44
Statutory
Reports
(g) Excess amount for set off, if any (K in crores):

Sl. Amount
Particular
No (K in Crores)
(i) Two percent of average net profit of the company as per section 135(5) 95.75
(ii) Total amount spent for the Financial Year 96.44
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.69
(iv) Surplus arising out of the CSR projects or programmes of the previous financial year (I in crores): Nil
(v) Amount required to be set off for the financial years [(iii)-(iv)] Nil
9 (a) Details of Unspent CSR Amount for the preceeding three financial years:
Amount
Amount Transferred to Amount spent
remaining to be
Sl. Preceding Unspent CSR Account in the reporting Amount Transferred to any fund specificed
spent in suceeding
No Financial Year under Section 135 (6) Financial Year under Schedule VII as per Section 135 (6), if any
financial years
(K In Crores) (K In Crores)
(K In Crores)
Amount Date of
Name of Fund
(K In Crores) Transfer
1 2019-20 Nil Nil NA NA NA Nil
2 2020-21 12.05 4.4 NA NA NA 2.28
3 2021-22 Nil Nil NA NA NA Nil
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding
financial year(s):
Cumulative
Amount spent
Total Amount amount spent Status of
on the project
Sl. Project allocated for the at the end the Project
Project ID Name of the Project in the reporting
No Duration project of reporting (Completed/
Financial Year
(K in Crores) Financial Year Ongoing)
(K In Crores)
(K In Crores)
1 FY31.03.2021_1 Muthoot Aashiyana Project 3 years 5.48 2.94 3.64 Ongoing
2 FY31.03.2021_2 Disaster Management 3 years 1.46 0.07 1.31 Ongoing
Programme
3 FY31.03.2021_3 Muthoot M George Excellence 3 years 0.30 0.01 0.01 Ongoing
Award
4 FY31.03.2021_4 Sports Promotion Activity 3 years 4.81 1.38 4.81 Ongoing
Total 12.05 4.40 9.77
10 In case of creation or acquisition of capital asset, furnish the details relating to the asset so
created or acquired through CSR spent in the financial year (asset wise details):
(a) Date of creation or acquisition of the capital asset(s) NA
(b) Amount of CSR spent for creation or acquisition of capital asset (I in crores): NA
(c) Details of the entity or public authority or beneficiary under whose name such capital assets is registered, their NA
address etc.
(d) Details of the capital assets created or acquired (including complete address and location of the capital asset NA
11 Specify the reasons if the company has failed to spend two percent of the average net profit as
per Section 135 (5) Company has fully expended the CSR obligation of two percent of the average
net profits for the financial year 2022-23: NA
Sd/- Sd/-
George Alexander Muthoot Justice (Retd) Jacob Benjamin Koshy
Managing Director Chairman of Corporate Social & Business Responsibility Committee
DIN: 00016787 DIN: 07901232
Place: Kochi
Date: August 11, 2023

ANNEXURE- 3
Business Responsibility & Sustainability Reporting
SECTION A: GENERAL DISCLOSURES
1. Details of the listed entity

1. Corporate Identity Number (CIN) of the Listed Entity L65910KL1997PLC011300
2. Name of the Listed Entity MUTHOOT FINANCE LIMITED
3. Year of incorporation 1997
4. Registered office address 2ND FLOOR MUTHOOT CHAMBERS OPP SARITHA THEATRE COMPLEX
ERNAKULAM, KERALA - 682018
5. Corporate address 2ND FLOOR MUTHOOT CHAMBERS OPP SARITHA THEATRE COMPLEX
ERNAKULAM, KERALA - 682018
6. E-mail [email protected]
7. Telephone 4842394712
8. Website https://www.muthootfinance.com/
9. Financial year for which reporting is being done 2022 – 23
10. Name of the Stock Exchange(s) where shares are listed BSE & NSE
11. Paid-up Capital 4014482310
12. Name and contact details (telephone, email address) of the Rajesh A
person who may be contacted in case of any queries on the 4846690255
BRSR report [email protected]
13. Reporting boundary - Are the disclosures under this report Standalone basis
made on a standalone basis (i.e., only for the entity) or on
a consolidated basis (i.e., for the entity and all the entities
which form a part of its consolidated financial statements,
taken together).
2. Products/services
14. Details of business activities (accounting for 90% of the turnover):

S. % of the turnover
Description of the main activity Description of business activity
No. of the entity
1 Financial Service Non-Banking Financial Services 96.25
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
% of Total
S.
Product/Service NIC Code Turnover
No.
contributed
Financial Service 64990 96.25
3. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of branches Number of regional offices Total
National 4739 76 4815
International 0 0 0

Statutory
Reports
17. Markets served by the entity:
a. Number of locations
Locations Number
National (No. of States) 27
International (No. of Countries) 0
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Not Applicable
c. A brief on types of customers

Our customers are typically small businessmen, vendors, traders, farmers and salaried individuals, who for reasons of
convenience, accessibility or necessity, avail of our credit facilities by pledging their gold jewelry with us rather than by
taking loans from banks and other financial institutions. We provide retail loan products, primarily comprising Gold
Loans. Our Gold Loans have a maximum 12 month term.
4. Employees
18. Details as at the end of the Financial Year:
a. Employees and workers (including differently-abled):

S. Male Female
Particulars Total (A)
No. No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1. Permanent (D) 27273 21837 80% 5436 20%
2. Other than Permanent (E) 0 0 0% 0 0%
3. Total employees (D + E) 27273 21837 80% 5436 20%
WORKERS
4. Permanent (F) 0 0 0 0 0
5. Other than Permanent (G) 0 0 0 0 0
6. Total workers (F + G) 0 0 0 0 0
b. Differently abled Employees and workers:

Male Female
S. No. Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 0 0 0 0 0
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled 0 0 0 0 0
employees (D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 0 0 0 0 0
5. Other than Permanent (G) 0 0 0 0 0
6. Total differently abled 0 0 0 0 0
workers (F + G)
19. Participation/Inclusion/Representation of women
No. and percentage of Females

Total (A)
No. (B) % (B/A)
Board of Directors 14 1 7.14%
Key Management Personnel 2 0 0

20. Turnover rate for permanent employees and workers
FY 2022-23 FY 2021-22 FY 2020-21

Male Female Total Male Female Total Male Female Total
Permanent Employees 40.51% 25.94% 37.61% 34.52% 24.17% 32.62% 23.35% 13.27% 21.20%
Permanent Workers NA NA NA NA NA NA NA NA NA
5. Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Indicate whether
% of shares Does the entity indicated in column A,
S. Name of the holding / subsidiary / associate holding/ Subsidiary/
held by participate in the Business Responsibility
No. companies / joint ventures (A) Associate/ Joint
listed entity initiatives of the listed entity? (Yes/No)
Venture
1 ASIA ASSET FINANCE PLC Subsidiary 72.92 % No
2 MUTHOOT HOMEFIN (INDIA) LIMITED Subsidiary 100.00% No
3 MUTHOOT INSURANCE BROKERS PRIVATE Subsidiary 100.00% No
LIMITED
4 BELSTAR MICROFINANCE LIMITED Subsidiary 56.97% No
5 MUTHOOT MONEY LIMITED Subsidiary 100.00% No
6 MUTHOOT TRUSTEE PRIVATE LIMITED Subsidiary 100.00% No
7 MUTHOOT ASSET MANAGEMENT PRIVATE Subsidiary 100.00% No
LIMITED
6. CSR Details
22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes
(ii) Turnover (in K): 10,543.75 Cr
(iii) Net worth (in K): 21,061.93 Cr
7. Transparency and Disclosures Compliances
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:
FY 2022-23 FY 2021-22
Stakeholder Grievance Redressal Number of Number of

Number of
group from Mechanism in Place (If yes, complaints complaints Number of complaints
whom complaint then provide web link for pending complaints pending
filed Remarks Remarks
is received grievance redress policy) during the resolution filed during resolution at
at the close the year the close of
year
of the year the year
Communities The company has a 0 0 No complaints 0 0 No complaints
grievance redressal were received were received
policy outlined the
process and procedure
for capturing and
addressing grievances
of all the various
stakeholders. The policy
can be found on our
website, on the below
weblink:
https://cdn.
muthootfinance.com/
sites/default/files/pdf/
Grievance-Redressal-
Policy-for-Stakeholders.
pdf

Statutory
Reports
FY 2022-23 FY 2021-22
Stakeholder Grievance Redressal Number of Number of

Number of
group from Mechanism in Place (If yes, complaints complaints Number of complaints
whom complaint then provide web link for pending complaints pending
filed Remarks Remarks
is received grievance redress policy) during the resolution filed during resolution at
at the close the year the close of
year
of the year the year
Investors 18 0 No complaints 15 0 No complaints pending to be
(other than pending to be resolved
shareholders) resolved
Shareholders 6 1 Pending 2 0 The Company’s RTA redresses
complaints shareholders’ grievances and
were resolved provides share transfer related
after closure of services to shareholders and
FY 2022-23. investors. The Company has
formed a Board level Committee
i.e. Stakeholders Grievance
Committee which monitors/
oversees redressal of investors
complaints, reviews the redressal
process and the adherence to
service standard adopted by the
Company in respect of the share
registration activities by its RTA.
There is a dedicated email id for
receiving investor complaints:
[email protected]. Details
of investors complaints received
are filed on a quarterly basis with
the Stock Exchanges where the
shares of the Company are listed.
Employees and 768 7 Pending 1196 144 Pending complaints were
workers complaints resolved after closure of
were resolved FY 2021-22.
after closure of
FY 2022-23.
Customers 997 1 Pending case 1033 10 Cases which were pending at the
was resolved end of FY 2021-22 have now been
after closure of closed.
FY 2022-23
Value Chain 0 0 0 0
Partners
24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along with its financial implications.
Indicate
S. Material issue Rationale for identifying In case of risk, approach to adapt or Financial implications of
whether risk or
No. identified the risk/opportunity mitigate the risk or opportunity
opportunity
1 Access to Opportunity Muthoot Finance The Company brings about financial Positive:
Finance endeavours towards inclusion for the large masses including the - P rovision of credit to
improvement in access underprivileged and the poor who have been people who may not have
to finance by reaching brought under the ambit of banking. access to formal credit
to underprivileged Additionally, MFL by providing an within a reasonable time
population. immediate access to finance, empowers or to whom formal credit
the poor towards self-sufficiency and self- may not be available at all
sustenance for repaying their pending loans.

Indicate
whether risk or
opportunity
2 Consumer Risk The company considers MFL strives to ensure the highest level Negative:
Financial its responsibility of transparency and accountability in all - Unfair and
Protection towards mitigation of dealings with its customers, keeping their non‑transparent
potential reputational interests protected in the most inclusive practices will lead to loss
and regulatory risks way. of repeat business from
arising from unethical - MFL has aligned its corporate governance customers
lending practices or mis practice to achieve the objectives
selling financial products of principles as envisaged in SEBI
to consumers. (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“SEBI
Listing Regulations”), aiming to protect
shareholder interests and improve market
integrity.
- L
ending against security of ‘Household
Used Gold Ornaments’ (HUGO) in an
endeavour to understand the specific
requirements of individuals to be able
to make funds available to them with
eagerness.
3 Data Security & Risk/ As a consumer finance MFL is constantly in the process of Positive:
Cybersecurity Opportunity organization, MFL strengthening its business applications to - Integrating technology
considers it is our improve customer data and privacy, through into the business
responsibility to ensure strong electronic monitoring, protocols and operations gives the
both privacy-and cyber security architecture. opportunity to provide
security of data of all our A strong Data Leak Prevention (DLP) innovative solutions.
internal and external program has been implemented to ensure
stakeholders Negative:
data security
- Costs associated with
strong electronic
monitoring and
cybersecurity protocols
to protect client data.
4 Risk Risk The company has MFL is committed to identification of risks Negatives:
Management developed well to our business, and place in robust risk - Frequent regulatory
documented and management mechanisms that enable us to changes entails
robust internal audit achieve our company’s mission and vision. compliance costs from
and control system for Some of these are: NBFCs and may reduce
meticulous compliance - Centralised monitoring and surveillance their competitiveness and
from all layers of the cameras ability to protect their
Company. The control
system ensures that - Employees are regularly trained on how to margins.
the Company’s assets spot a fraud, such as unauthentic gold - Failing to manage risks
are safeguarded and The Risk Management Committee will impact profitability
protected. This is part periodically reviews the risk management and long-term value
of the risk management policy, management plan, implements and creation
protocol followed at MFL. monitors the risk management plan, and
helps mitigate key risks
5 Customer Opportunity The company has always As a consumer finance company, MFL places Positive:
Satisfaction put the customer first, prime focus on customer centricity and - Satisfied customers
aiming to provide them providing services of the highest quality. usually lead to repeat
with the best possible MFL leverages technology and digital business opportunities
services in the industry. adoption to cater to all needs of customers which result in increased
at a faster pace across the country. With revenues
a customer base of over 200,000 MFL - Improvement of overall
identifies and caters to their requirements, brand reputation
also reviewing any grievances for a root
cause analysis

Statutory
Reports
Indicate
whether risk or
opportunity
6 Emissions Risk/ MFL as an organization The company is focused to track emissions Positives:
(GHG) Opportunity recognizes the from its own operations aims to create a Reducing emissions from
importance of resource mechanism to reduce it on a Y-o-Y basis, own operations will
usage and aims to reduce improving its overall environmental improve both in helping
carbon emissions (GHG) footprint. save energy related
and manage the risks Among several initiatives from MFL, the costs and create positive
associated with its own company has replaced CFL with energy shareholder value.
operational energy use. efficient LED lamps, conventional tube light Negative:
signboards have been substituted with LED
glow signboards. - Higher operational
costs due to high energy
Going forward, MFL also intends to install consumption
inverter ACs in branches under the AC
Project and will monitor the emissions saved
from this and other such environmental
initiatives
7 Digitalisation Opportunity The company is moving MFL in line with its goal launched multiple Positives:
forward with a digital initiatives such as the - T he digital first approach
blueprint, with a goal - L oan@Home Video KYC, AI powered and embracing digital
to blur the line between chat engine, BBPS (Bharath Bill Payment architecture helps
physical and digital System) interface for transactions, achieve higher efficiency
through the integration iMuthoot, for better turnaround times in and transforming the
of technology to ensure Loan Originating System, and “Deep Link” customer experience.
creation of a contactless for single click repayment provide ease of - Digitalisation helps
and seamless ecosystem access to customers reduces the usage of
paper and reinforces the
pledge to save the natural
environment.
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1.a. W hether your entity’s Yes Yes Yes Yes Yes Yes Yes Yes Yes
policy/ policies cover
each principle and its
core elements of the
NGRBCs. (Yes/No)
b. Has the policy been Yes Yes Yes Yes Yes Yes Yes Yes Yes
approved by the Board?
(Yes/No)
c. Web Link of the https://www. https://cdn. https://cdn. https://cdn. https://cdn. https://cdn. https://cdn. https://cdn. https://cdn.
muthootfinance. muthootfinance. muthootfinance. muthootfinance. muthootfinance. muthootfinance. muthootfinance. muthootfinance. muthootfinance.
Policies, if available com/code-of- com/sites/ com/sites/ com/sites/ com/sites/ com/sites/ com/sites/ com/sites/ com/sites/
conduct default/files/ default/files/ default/files/ default/files/pdf/ default/files/pdf/ default/files/ default/files/ default/files/pdf/
pdf/Sustainable- pdf/Diversity- pdf/Grievance- Human-Rights- Environmental- pdf/Policy-on- pdf/Sustainable- Stakeholders-
Sourcing-and- Inclusion- Redressal-Policy- Policy.pdf Social-&- Responsible- Sourcing-and- Engagement-
Preferential- and-Equal- for-Stakeholders. Governance- Advocacy.pdf Preferential- Policy.pdf
Procurement- Opportunity- pdf (ESG)- Procurement-
Policy.pdf Policy.pdf Framework.pdf Policy.pdf
2. Whether the entity has Yes Yes Yes Yes Yes Yes Yes Yes Yes
translated the policy
into procedures.
(Yes/No)
3. Do the enlisted policies Yes Yes Yes Yes Yes Yes Yes Yes Yes
extend to your value
chain partners?
(Yes/No)

4. Name of the national NGRBC NGRBC NGRBC NGRBC NGRBC NGRBC NGRBC NGRBC NGRBC
and international
codes/certifications/
labels/ standards
adopted by your entity
and mapped to each
principle.
5. Specific commitments,
The company is currently in the process of thoroughly assessing and establishing its sustainability-related
goals and targets set by
goals and targets, together with a clear time frame and execution strategy to meet those goals in the near
the entity with defined
future.
timelines, if any.
6. Performance of the
entity against the
specific commitments,
Once the sustainability-related goals are established, performance in respect to them will be tracked,
goals, and targets
assessed, and reported in the coming years.
along-with reasons in
case the same are not
met.
Governance, leadership, and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG -related challenges, targets, and
achievements
As one of India’s largest Gold Loan Financing Company, MFL is committed to positively impact the environment, our customers,
employees, and the community at large. Our core values have guided our ESG practices, which seek to drive growth and empower
communities through our corporate decision-making processes.
We are committed towards pleasant customer service, operational excellence, product leadership, and people. These are in our blood.
It is not like we have opted these in just recent years, we have been carrying the same legacy for last 800 Years, with our unique slogan,
“Unchanging Values in Changing Times”.
As an organization, we aim to align our ESG approach with our strategic goals and the experience we seek to offer all our stakeholders.
ESG is an area of heightened focus and investment for us and has changed our outlook towards our business.
8. Details of the highest authority responsible George Alexander Muthoot
for implementation and oversight of the DIN - 00016787
Business Responsibility policy (ies). Managing Director
Telephone number: 0484-2394712
[email protected]
9. Does the entity have a specified Committee Yes
of the Board/ Director responsible for The ESG Committee was constituted by the MFL Directors through a board resolution
decision making on sustainability-related dated August 06, 2021 and reconstituted in the Board meeting held on August, 12, 2022.
issues? If yes, provide details Terms of reference of the ESG Committee include
a) Overseeing Company’s policies, practices, and performance with respect to ESG
matters
b) Overseeing Company’s reporting on ESG matters
c) Recommending to the Board the Company’s overall general strategy with respect to
ESG matters
d) Approving the report on ESG
e) Delegating the authority to do any acts, deeds, and matters relating to ESG.
10. Details of Review of NGRBCs by the Company:

Indicate whether review was undertaken by
Frequency (Annually/ Half yearly/ Quarterly/
Director / Committee of the Board/ Any other
Subject for Review Any other – please specify)
Committee
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against above policies and follow
Committee of the Board Annually
up action
Compliance with statutory requirements of
relevance to the principles and rectification of The company complies with all the statutory requirements as applicable
any non-compliances

Statutory
Reports
11. Has the entity carried out independent P1 P2 P3 P4 P5 P6 P7 P8 P9

assessment/ evaluation of the working
of its policies by an external agency? No No No No No No No No No
(Yes/No). If yes, provide name of the
agency.
* A n internal assessment of the working of the BRSR policies has been conducted. In due course, the Company shall have an external assurance on the
same as well.
12. If answer to question (1) above is “No” i.e., not all Principles are covered by a policy, reasons to be stated:
The entity does not consider the Principles
Not Applicable
material to its business (Yes/No)
The entity is not at a stage where it is in a
position to formulate and implement the
policies on specified principles (Yes/No)
Not Applicable
The entity does not have the financial or/human
and technical resources available for the task
(Yes/No)
It is planned to be done in the next financial
Not Applicable
year (Yes/No)
Any other reason (please specify) Not Applicable
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is
Ethical, Transparent and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Total number %age of persons in
of training and respective category
Segment Topics / principles covered under the training and its impact
awareness covered by the
programmes held awareness Programmes
Board of Directors 1 During FY 2022-23, various matters were put forward before the 100%
Board during the committee meetings. All directors, including
independent directors and Key Managerial Personnel in their capacity
as members and invitees of various committees of the Board, were
informed on developments relating diverse relevant topics such as -
regulatory, economic, business environment changes and challenges,
new business innovations, Corporate Governance, IT related initiatives
and various risk indicators.
Strategic presentations were made to the Directors, and Key
Managerial Personnel periodically on Company strategy, performance,
Key Managerial 1 and growth plans. These presentations covered the entire range of 100%
Personnel business activities market review, equity and debt performance,
earnings outlook, operational efficiencies, service and product
offerings, update on business performances etc.
Considering the above, approximately 36 hours have been spent
during FY 2022-23 by the Board of Directors on various familiarisation
programmes during Board / Committee meetings including four one-
on-one/group sessions.
Employees other 4 Our employees received training on 78%
than BoD and - Office Environment, Potential Risks & Hazards
KMPs
- Office Environment, Safe Use of Stairs & Elevators
- Basic First Aid and Hierarchy of Controls
- Health and Safety Measures, Human Rights
Workers NA NA NA

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings
(by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the
financial year:
NIL
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where
monetary or non-monetary action has been appealed:
NIL
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available,
provide a web-link to the policy.
Yes.
This policy emphasizes Muthoot Finance Limited’s Zero Tolerance towards bribery and corrupt practices and establishes
clear rules to ensure compliance with all applicable anti bribery and anti-corruption laws. The policy provides necessary
information and guidance on how to recognise and deal with bribery and corruption issues.
The objective of this policy is to ensure that neither MFL nor any of its employees (whether full time permanent
or contractual employees and including trainees and interns), agents, associates, vendors, consultants, advisors,
representatives, or intermediaries and /or stakeholders, indulge in any acts of ‘Bribery’ or ‘Corruption’ in discharge of
their official duties towards MFL, either in their own name or in the name of the Company.
The detailed policy can be accessed at: https://www.muthootfinance.com/policy-investor
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption:
FY (2022-23) FY (2021-22)
Personnel
(Current Financial Year) (Previous Financial Year)
Directors 0 0
KMPs 0 0
Employees 0 0
Workers NA NA
6. Details of complaints with regard to conflict of interest:

FY (2022-23) FY (2021-22)
Personnel (Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Directors 0 0
KMPs 0 0
7. Provide details of any corrective action taken or underway on issues related to fines/penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
Not Applicable since no such instances were reported.

Statutory
Reports
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
The company intends to implement awareness programs in an attempt to educate, engage our value chain partners/
suppliers on the various principles of BRSR, fostering a heightened understanding and commitment towards sustainable
business practices throughout the supply chain.
2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?
(Yes/No) If yes, provide details of the same.
The Company has put in place a Code of Conduct for Directors and Senior Management. This code for Directors and
Senior Management is intended to focus the Board and Senior Management on areas of ethical risk, provide guidance to
Directors and Senior Management to help them recognize and deal with ethical issues, provide mechanisms to report
unethical conduct and to help foster a culture of honesty and accountability. The Board of Directors has adopted the Code
of Conduct and the Directors and senior managers are expected to adhere to the standards of care, loyalty, good faith, and
the avoidance of conflicts of interest that follow.
PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe
1. Percentage of R&D and capital expenditure (CAPEX) investments in specific technologies to improve the
environmental and social impacts of products and processes to total R&D and CAPEX investments made by the
entity, respectively.
Current Previous
Details of improvements in environmental and social impacts
Financial Year Financial Year
R&D 0% 0% No R&D on environmental initiatives held during the year.
Capex 0% 0% Digitalisation initiatives such as Loan@Home Video KYC, AI powered chat engine,
BBPS (Bharath Bill Payment System) interface for transactions, iMuthoot have
helped create a positive E&S impact. The company has other ongoing initiatives
which have helped curb emissions and also resulted in energy savings:
• Office CFL bulb to LED light replacements (completed in FY 2021-22)
• Conventional tube light signboards substituted with LED glow sign boards
(started in 2016)
• Three windmills (combined capacity of 3.75 MW) operating in Tamil Nadu for
the last 16-17 years.
Going forward, MFL intends to install inverter ACs in branches under the
AC Project and will monitor this and other such environmentally beneficial
investments.
2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes.
b. If yes, what percentage of inputs were sourced sustainably?

The company operates in the NBFC sector providing financial products and services and has a minimal consumption
of any raw material which could be sourced locally or sustainably, and therefore this is not a material issue. However,
the company does realise the importance of conservation and reduced dependence on natural resources and follows
procedures such as use of second-hand laptops, use of LED lamps and used furniture to help reduce the stress on
the environment.

3. Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end
of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
Broadly reclamation of products for reusing, recycling, disposing at E-o-L is not applicable for the sector in which
MFL operates.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes,
whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to
Pollution Control Boards? If not, provide steps taken to address the same.
Extended Producer Responsibility does not apply for the sector in which MFL operates.
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for the
manufacturing industry) or for its services (for the service industry)? If yes, provide details:
MFL operates in the NBFC sector and mainly deals with Gold Loans and other financial services. Lifecycle assessments of
products or services does not apply to the sector MFL operates in.
2. If there are any significant social or environmental concerns and/or risks arising from production or disposal
of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other
means, briefly describe the same along-with action taken to mitigate the same.
Name of Product / Service Description of the risk / concern Action Taken
Not Applicable
3. Percentage of recycled or reused input material to total material (by value) used in production
(for manufacturing industry) or providing services (for service industry).
Recycled or re-used input material

Indicate input material to total material
FY 2022-23 FY 2021-22
Second-hand laptops - -
Used furniture - -
MFL team is working on devising a mechanism to closely monitor such input material as highlighted in the above table and
will be reporting it in the coming years.
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled,
and safely disposed:
Presently the company does not capture the below data. However, we remain committed to promoting responsible waste
management practices, environmental sustainability and stewardship in the NBFC sector.
FY 2022-23 FY 2021-22
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
Plastics (including packaging) 0 0 0 0 0 0
E-waste 0 0 0 0 0 0
Hazardous waste 0 0 0 0 0 0
Other waste 0 0 0 0 0 0
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Reclaimed products and their packaging materials
Indicate product category
as % of total products sold in respective category
NA NA

Statutory
Reports
PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in
their value chains
1. a. Details of measures for the well-being of employees:
% of employees covered by
Health Accident Maternity Paternity Day Care
Category Total insurance insurance benefits Benefits facilities
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent employees
Male 21837 6872 31% 0 0% 0 0% 0 0% 0 0%
Female 5436 1524 28% 0 0% 5436 100% 0 0% 0 0%
Total 27273 8396 31% 0 0% 5436 100% 0 0% 0 0%
Other than Permanent employees
Male 0 0 0% 0 0% 0 0% 0 0% 0 0%
Female 0 0 0% 0 0% 0 0% 0 0% 0 0%
Total 0 0 0% 0 0% 0 0% 0 0% 0 0%
b. Details of measures for the well-being of workers:

% of workers covered by
Health Accident Maternity Paternity Day Care
Category Total insurance insurance benefits Benefits facilities
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent workers
Male NA 0 0% 0 0% 0 0% 0 0% 0 0%
Female NA 0 0% 0 0% 0 0% 0 0% 0 0%
Total NA 0 0% 0 0% 0 0% 0 0% 0 0%
Other than Permanent workers
Male NA 0 0% 0 0% 0 0% 0 0% 0 0%
Female NA 0 0% 0 0% 0 0% 0 0% 0 0%
Total NA 0 0% 0 0% 0 0% 0 0% 0 0%
2. Details of retirement benefits.

FY 2022-23 FY 2021-22
No. of employees Deducted and No. of employees Deducted and
Benefits No. of workers No. of workers
covered as deposited with covered as deposited with
covered as a % covered as a %
a % of total the authority a % of total the authority
of total workers of total workers
employees (Y/N/N.A.) employees (Y/N/N.A.)
Provident Fund 70.97 NA Yes 64.77 NA Yes
Gratuity 18.99 NA Yes 24.38 NA Yes
ESI 71.25 NA Yes 68.69 NA Yes
3. Accessibility of workplaces: Are the premises / offices of the entity accessible to differently abled employees
and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any
steps are being taken by the entity in this regard.
A majority of MFL’s current offices are located on the Ground Floor. Therefore, these are generally accessible and some
branches which are part of shopping complexes / malls also have ease of accessibility through ramps, elevators etc.
Even though the branches may not have specific facilities aimed at accessibility for the differently abled, going forward
MFL is considering making the upcoming branches and offices accessible to differently abled employees and customers.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
Yes. https://cdn.muthootfinance.com/sites/default/files/pdf/Diversity-Inclusion-and-Equal-Opportunity-Policy.pdf
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers
Gender Return to Retention Return to Retention
work rate rate work rate rate
Male - - - -
Female 86% 72% - -
Total 86% 72% - -
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Yes/No If yes, then give details of the mechanism in brief

Permanent Workers No Permanent worker category is not applicable for MFL
Other than Permanent Workers No Permanent worker category is not applicable for MFL
Permanent Employees Yes Grievances if any are shared by employees to mail Id as provided -
[email protected] (North) and
[email protected] (South)
Other than Permanent Employees Yes Grievances if any are shared by employees to mail Id as provided -
[email protected] (North) and
[email protected] (South)
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
FY 2022-23 FY 2021-22
No. of employees No. of employees
Total Total
/ workers in / workers in
Category employees / employees /
respective category, respective category,
workers in % (B/A) workers in % (B/A)
who are part of who are part of
respective respective
association(s) or association(s) or
category (A) category (A)
Union (B) Union (B)
Total Permanent Employees

Male
Female Employees do not have any representative union or association.
Total
Total Permanent Workers
Male NA
Female NA
Total NA

Statutory
Reports
8. Details of training given to employees and workers:

FY 2022-23 FY 2021-22
On Health and On Skill On Health and On Skill
Category
Total (A) safety measures upgradation Total (A) safety measures upgradation
No. (B) % (B/A) No. (C) % (C/A) No. (B) % (B/A) No. (C) % (C/A)
Employees
Male 20344 15691 77% 13511 66% 20274 Monitoring mechanism was developed in
Female 4201 3370 80% 2981 71% 3530 FY 2022-23, data not captured in
FY 2021-22.
Other
Total 24545 19061 78% 16492 67% 23804 - - - -
Workers
Male NA NA
Female NA NA
Total NA NA
9. Details of performance and career development reviews of employees and worker:

FY 2022-23 FY 2021-22
Category
Total (A) No. (B) % (B/A) Total (A) No. (B) % (B/A)
Employees
Male 20344 18245 90% 20274 18742 92%
Female 4201 3506 83% 3530 3409 97%
Total 24545 21751 89% 23804 22151 93%
Workers
Male NA
Female NA
Total NA
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? If yes,
the coverage such system
Yes, an organization-wide Heath Safety system is out in place aligned to the guidelines included in the ESG framework
policy. The focus areas cover ensuring a safe and healthy work environment, which is free of any discrimination. All
MFL branches have a basic first-aid kit. Complementary medical health check ups are organised by the company
along with periodic trainings on Health and Safety conducted through the “Regional Learning Centers” and “Muthoot
Management Academies” for employees to keep them abreast with the latest developments in the area.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non‑routine
basis by the entity?
The company has always emphasized on the importance of health and safety at workplaces. Periodic trainings are
conducted to update employees on the various potential risks & hazards in an office environment, such as air quality,
noise level, lighting, fire hazards, safe usage of stairs/elevators and basic first aid training.
Additionally, there is a robust security system established based on the organization’s seven-layer security
transformation plan detects anomalies swiftly and responds instantly, thus ensuring that the security imperatives
of a pan-India NBFC like us is carried out seamlessly.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves
from such risks.
Yes, guidelines are in place for reporting work-related hazards for employees. Furthermore, there are mock drills
and safety trainings conducted periodically to create a general awareness among the organization’s employees.
d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
Yes, employees have access to non-occupational medical and healthcare services.
11. Details of safety related incidents:

Safety Incident/Number Category FY 2022-23 FY 2021-22
Lost Time Injury Frequency Rate (LTIFR) per one million-person hours Employees 0 0
worked) Workers 0 0
Total recordable work-related injuries Employees 0 0
Workers 0 0
No. of fatalities Employees 0 0
Workers 0 0
High consequence work-related injury or ill-health (excluding fatalities) Employees 0 0
Workers 0 0
12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
The company is committed to take steps to promote a safe and conducive work environment for its employees and will
provide guidance on occupational health and safety, appropriate healthcare benefits and medical cover to all its employees.
Belonging to the NBFC sector, the company has put the following provisions:
1) A Green Glass environment for all its branches.
2) All Offices are air-conditioned to maintain a stable air quality and thermal comfort index in the workplaces
3) A basic first-aid kit is provided in all branches
4) Periodic drills and monitoring of safety measures such as fire-fighting equipment.
5) The presence of at least one security guard in each of the branches of MFL
In addition to this, the company has an ESG policy which covers health & safety aspects and follows a robust business
continuity / disaster recovery plan to prepare for emergency disaster events.
13. Number of Complaints on the following made by employees and workers:

FY 2022-23 FY 2021-22
Pending Pending
Filed during Filed during
resolution at the Remarks resolution at the Remarks
the year the year
end of year end of year
Working Conditions 0 0 - 0 0 -
Health & Safety 0 0 - 0 0 -
14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices Periodic assessments on fire safety and fire-fighting equipment at offices
Working conditions Periodic assessments of the HVAC system for optimal working conditions and maintenance of
thermal comfort index.
MFL team is working on devising a mechanism to monitor such assessments on fire safety, fire-fighting equipment, mock
drills, HVAC checks etc. and will be reporting it in the coming years.

Statutory
Reports
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks/concerns arising from assessments of health & safety practices and working conditions:
Not applicable
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees
(B) Workers.
(Y/N)
Employees Y
Workers NA
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited
by the value chain partners.
The company has set up an ESG policy and understands the need to work closely with its value chain partners / suppliers
for improving ethical and sustainable business practices whereby overall operational efficiency is improved. The company
ensures that all applicable statutory dues are deposited and deducted in relation to their value chain partners / suppliers
3. Provide the number of employees / workers having suffered high consequence work-related injury / ill-health /
fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:
No. of employees/workers that are
Total no. of affected employees/ rehabilitated and placed in suitable
workers employment or whose family members
have been placed in suitable employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees Nil Nil Nil Nil
Workers NA NA NA NA
4. Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment? (Yes/ No)
No
5. Details on assessment of value chain partners:

Value chain partners have not been assessed. Going forward the company aims to devise a mechanism to implement
the same.
% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices -
Working Conditions -
The company has not conducted any assessments for its value chain partners / suppliers during the reporting period.
Going forward MFL intends to roll out evaluations for its value chain covering aspects on their working conditions and
health & safety practices.
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
Not applicable

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
1. Describe the processes for identifying key stakeholder groups of the entity.
MFL is committed to transparent and participative engagement with our internal / external stakeholders.
Our stakeholder identification and engagement process:
• Identification and prioritization of stakeholders
− Stakeholders shall be identified as individuals/groups who may either influence or be interested or affected by MFL’s
business operations. They can be categorized as under:
− people who are either directly or indirectly dependent on MFL activities and products
− people who can influence or have a bearing impression on MFL’s strategy or operations
− people who are core MFL operations with the business depending on them
− people or groups to whom MFL has an existing or may have imminent operational, commercial, legal, or moral
responsibilities.
In relation to this, the company classifies its key stakeholders into the following categories: employees, customers,
investors, suppliers, regulators and communities.
The company has also formulated a Stakeholder Engagement policy, which serves as the guiding principle for engaging
with its stakeholders in a transparent and equitable manner, removing possibilities of any biases.
The policy link can be found on our website https://cdn.muthootfinance.com/sites/default/files/pdf/Stakeholders-

Engagement-Policy.pdf
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder
group.
Whether Channels of communication

Frequency of
identified as (News, SMS, Newspaper, Email, Purpose and scope of engagement including
engagement (Annually/
Stakeholder Group Vulnerable & Pamphlets, Advertisement, key topics and concerns raised during such
Half yearly/ Quarterly /
Marginalized Community Meetings, Notice engagement
others – please specify)
Group (Yes/No) Board, Website), Other
Customers No • Meetings Others- Need- Customer - centricity is the focal point of
• E-mail based/ Quarterly our entire business model. We are in the
• Other - Customer events; Or as decided by the constant process of innovation to ensure
Customer feedback; Face committee/Board of that we are able to provide our customers a
to face interactions; Directors from time diversified set of offerings and a seamless
Periodic customer to time and unmatched experience.
satisfaction surveys We also carry out periodic customer
satisfaction surveys to gauge any
grievances or pain points that they may
have, and subsequently working towards
its redressal.

Statutory
Reports
Whether Channels of communication

Frequency of
identified as (News, SMS, Newspaper, Email, Purpose and scope of engagement including
engagement (Annually/
Stakeholder Group Vulnerable & Pamphlets, Advertisement, key topics and concerns raised during such
Half yearly/ Quarterly /
Marginalized Community Meetings, Notice engagement
others – please specify)
Group (Yes/No) Board, Website), Other
Local No • Community Meetings Others- Need The company follows its core philosophy
Communities • Other - Face to face based/ Annually Or of social responsibility, through
interactions; Project as decided by the implementation of its CSR policy and
based discussions; CSR committee/Board of positively impacting the community.
activities Directors from time MFL through its dedicated foundation,
to time focuses its CSR activities into areas
of – Environmental Development,
Projects in Public Interest, Socio-
economic development for the poor and
underprivileged, Relief & Rehabilitation
after natural disasters.
We also engage, to ensure that activities
in the economic development, society
progress and environmental hazards
and overall objective of quality of life are
carried out diligently.
Employees No • Meetings Others- need based Our employees are the biggest drivers of
• E-mails our growth, and we place great emphasis
• SMS on ensuring that we are able to create
• Notice board an environment devoid of prejudices
• Other - Face to face that focuses on the overall development
interactions; Trainings; of our employees. We regularly engage
Periodic engagement with our employees to discuss areas of
surveys improvement and other strategy plans,
career progression initiatives.
Vendors and Yes • Meetings Others- Need-based Advances, financial terms with suppliers,
Suppliers • Other - Supplier meets; availability of required supplies.
Project based discussions
Government No • E-mail Others- Need- Engagements and discussions pertaining to
authorities and • Meetings based/ Quarterly regulations, compliances.
regulatory bodies • Other - Industry and Or as decided by the
regulatory forums; committee/Board of
Need-based one-on-one Directors from time
discussions to time
Investors and No • Annual Reports Others- Need The company periodically apprises and
lenders • Earnings calls based/ Annually Or engages with their lenders and investors
• Quarterly corporate as decided by the for updating on performance aspects such
governance reports committee/Board of as overall growth, profitability, risks,
• Annual General Meetings Directors from time future strategy etc.
• Investor Meets to time
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and
social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
MFL connects with its investors during earnings calls, quarterly meets, annual general meetings to share relevant
information and to gain an understanding on their perspectives on MFL’s overall strategy.
Through the increased digitalisation strategy of MFL, it interacts with customers via e-mails, online meetings, periodic
customer satisfaction surveys and also face-to-face meetings seeking feedback on varied topics including ESG and
tailor‑make solutions and services accordingly.
Ongoing interactions are held with the employees of MFL through e-mails, meetings, periodic engagements, SMS and
other communication channels to discuss areas of improvements and align their interests in terms of MFL’s strategic
priority areas.

MFL engages with regulatory agencies at industry and regulatory forums, through emails, need based one to one meeting,
to discuss all aspects of regulations, policies and associated compliances.
Following its core philosophy of social responsibility MFL interacts with the communities, engaging with them through
various focused CSR activities. Periodic community meetings to recognize their needs and accordingly design programs
which may support it.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and
social topics. If so, provide details of instances as to how the inputs received from stakeholders on these topics
were incorporated into policies and activities of the entity.
For MFL, the stakeholder engagement policy guides consultations through which various environmental and social issues
are identified and managed, as well as a feedback and opinion are sought from stakeholders. For example, our engagement
with stakeholders and investors helps us identify key ESG material to them and requiring disclosure. These are taken
further to be incorporated into policies of the company. MFL have also established an ESG framework policy which
broadly provides the company’s strategy and overall commitment towards ESG related aspects. In general, the company
based on its foundations of a robust Code of Conduct, tries to nurture ethical business and environment-friendly practices
while keeping in mind employee wellbeing.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups.
MFL engages through its CSR strategy, by undertaking a number of programs and activities for the benefit of various social
groups, with an emphasis on the marginalized, vulnerable, and underprivileged. Please refer Principle 8 (Leadership
Disclosure) for more details.
PRINCIPLE 5: Businesses should respect and promote human rights
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity:
FY 2022-23 FY 2021-22
Category No. of employees

No. of employees /
Total (A) / workers % (B/A) Total (A) % (B/A)
workers covered (B)
covered (B)
Employees
Permanent 27273 4899 18% Monitoring mechanism was
Other than permanent 0 0 0% developed in FY 2022-23, data
Total 27273 4899 18% not captured in FY 2021-22.
Workers
Permanent NA NA
Other than permanent NA NA
Total NA NA

Statutory
Reports
2. Details of minimum wages paid to employees and workers:

FY 2022-23 FY 2021-22
Equal to Minimum More than Minimum Equal to Minimum More than Minimum
Category
Total (A) Wage Wage Total (A) Wage Wage
No. (B) % (B/A) No. (C) % (C/A) No. (B) % (B/A) No. (C) % (C/A)
Employees
Permanent
Male 21837 - - 21837 100% 15853 - - 15853 100%
Female 5436 - - 5436 100% 3538 - - 3538 100%
Other than Permanent
Male 0 - - 0 0% 4272 - - 4272 100%
Female 0 - - 0 0% 22 - - 22 100%
Workers
Permanent
Male NA - - - - NA - - - -
Female NA - - - - NA - - - -
Other than Permanent
Male NA - - - - NA - - - -
Female NA - - - - NA - - - -
3. Details of remuneration/salary/wages:
Male Female
Median remuneration/ salary/ Median remuneration/ salary/
Number Number
wages of respective category wages of respective category
Board of Directors (BoD) 13 11,512,300 1 2,090,000
Key Managerial Personnel 2 12,086,072 0 -
Employees other than BoD and KMP 21837 2,48,093 5436 2,92,658
Workers NA NA
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business?
Yes. All grievances, including human rights related grievances, are addressed through established procedure laid down
in the Grievance redressal policy. The policy can be accessed at https://cdn.muthootfinance.com/sites/default/files/pdf/
Grievance-Redressal-Policy-for-Stakeholders.pdf.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Muthoot Finance ensures it does not cause any human rights violations as a result of its operations or relationships.
1) The grievance can be reported in person or through letter/e-mail or over telephone.
2) A grievance once received will be acknowledged by the grievance owner, within three working days of the grievance
being submitted.
3) Depending on the nature and severity of the grievance, the complaints can be made to respective department heads
or branch heads.
4) The company has fixed timelines for grievance redressal based on the nature and severity of the complaint.
5) All complaints resolutions will be closed within a maximum period of 21 days.

6. Number of Complaints on the following made by employees and workers:

FY 2022-23 FY 2021-22
Filed Pending Filed Pending
during the resolution at the Remarks during the resolution at the Remarks
year end of year year end of year
Sexual Harassment 3 0 Raised complaints 5 0 Raised complaints
were resolved within were resolved within
the end of the year. the end of the year.
Discrimination at workplace Nil Nil None Nil Nil None
Child Labour Nil Nil None Nil Nil None
Forced Labour/ Involuntary Nil Nil None Nil Nil None
Labour
Wages Nil Nil None Nil Nil None
Human Rights Issues Nil Nil None Nil Nil None
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The company has a robust Vigil mechanism by way of Whistle-blower policy (https://www.muthootfinance.com/vigil-
mechanism)
i. MFL shall promote a workplace which is devoid of harassment, discrimination, threats, mistreatment, intimidation,
and victimization. Employees found violating this policy may be subjected to disciplinary procedures.
ii. The Company will ensure fair treatment of all employees, giving due respect to their personal rights, privacy
and dignity.
iii. The career progression and employment opportunities provided shall be fair and equal.
iv. Irrespective of the level, title, religion, race, belief, age, caste, color, nationality and ethnic origin, marital status,
pregnancy, gender identity, sexual orientation, political affiliation and physical (dis)ability the communication
between employees shall be kept respectful.
v. MFL will ensure maintenance of an environment where employees are always encouraged to work together
harmoniously and professionally; employees must not perceive that their background, lifestyle hinders their
opportunities for growth and development.
8. Do human rights requirements form part of your business agreements and contracts?
The company recognizes the legal and moral responsibility to respect human rights of all its stakeholders. MFL is also
committed in the compliance of the Human Rights Policy with the requirements of all applicable employment, labour and
human rights laws. The policy not only applies to every employee but has also been extended to its value chain partners
covering all operational offices/ branches under Muthoot Finance Ltd.
In line with this MFL intends to include clauses in its agreements / contracts with its value chain partners, for adherence
of all applicable human rights laws and assessments on discrimination at workplace, sexual harassment, child labour,
forced labour and minimum wages.

Statutory
Reports
9. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child labour -
Forced/involuntary labour -
Sexual harassment -
Discrimination at workplace -
Wages -
Others – please specify -
the assessments at Question 9 above.
Not Applicable
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/
complaints.
MFL continuously monitors Human rights related concerns / complaints and ensures that the overall standards of human
rights laws are adhered to. These include Prevention of sexual harassment, child labour, forced labour, discrimination at
workplaces etc. The complaints which were raised during the reporting period were resolved within the close of the year.
2. Details of the scope and coverage of any Human rights due diligence conducted.
No
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights
of Persons with Disabilities Act, 2016?
A majority of MFL’s current offices are located on the Ground Floor. Therefore, these are generally accessible and some
branches which are part of shopping complexes / malls also have ease of accessibility through ramps, elevators etc.
Even though the branches may not have specific facilities aimed at accessibility for the differently abled, going forward
MFL is considering making the upcoming branches and offices accessible to differently abled employees and customers.
4. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment -
Discrimination at workplace -
Child Labour -
Forced Labour/Involuntary Labour -
Wages -
the assessments at Question 4 above.
Not Applicable

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
1. Details of total energy consumption (Gigajoules) and energy intensity:
Parameter FY 2022-23 FY 2021-22

Total electricity consumption (A) 294,819 294,819
Total fuel consumption (B) 11,297 12,769
Energy consumption through other sources (C) - -
Total energy consumption (A+B+C) 306,117 307,589
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees) 0.0000029 0.0000028
(GJ/INR)
Energy intensity (GJ/FTE) 15.44 15.86
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
No
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? If yes, disclose whether targets set under the PAT
scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
No, none of our branches are covered under PAT scheme.
3. Provide details of the following disclosures related to water:

Water withdrawal by source (in kilolitres)
(i) Surface water - -
(ii) Groundwater - -
(iii) Third party water 133,805* 130,889*
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 133,805 130,889
Total volume of water consumption (in kilolitres) - -
Water intensity per rupee of turnover (Water consumed / turnover) (KL/INR) - -
Water intensity (optional) – (KL/FTE) 6,750 6,750
* Standard proxies have been used for this calculation – 20 litres per day per employee has been considered for general purposes (use in
toilets, handwash etc.) as per CGWA guidelines and 5 litres has been assumed for miscellaneous purpose. This was subsequently annualised
considering 270 working days on an average1.
Going forward MFL intends to devise a mechanism to monitor water consumption on an actual basis.
No
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
No. Zero Liquid Discharge does not particularly apply to the NBFC sector owing to its limited water consumption.
1 Estimation of water requirement for drinking and domestic use https://cgwa-noc.gov.in/LandingPage/Guidlines/NBC2016WatRequirement.pdf

Statutory
Reports
5. Please provide details of air emissions (other than GHG emissions) by the entity:
Parameter Please specify unit FY 2022-23 FY 2021-22
NOx Tonnes - -
SOx Tonnes - -
Particulate matter (PM) Tonnes - -
Persistent organic pollutants (POP) - - -
Volatile organic compounds (VOC) - - -
Hazardous air pollutants (HAP) - - -
Others – please specify - - -
No
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 1 emissions Metric tonnes of CO2 equivalent 11,643 11,307
CO2 Metric tonnes of CO2 828 936
CH4 Metric tonnes of CO2 equivalent 1.74 1.93
N2O Metric tonnes of CO2 equivalent 10.72 12.42
HCFCs Metric tonnes of CO2 equivalent 9800 9447.2
HFCs Metric tonnes of CO2 equivalent 1002.3 909.8
Total Scope 2 emissions (CO2) Metric tonnes of CO2 equivalent 54,936 54,954
Total Scope 1 and Scope 2 emissions per rupee of Metric tonnes of CO2 equivalent / INR 0.00000052 0.00000050
turnover of turnover
Total Scope 1 and Scope 2 emission intensity Metric tonnes of CO2 equivalent / FTE 3.35 3.41
(optional) – the relevant metric may be selected by
the entity
No
7. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
The company has undertaken some initiatives to curb energy consumption leading to reduction in greenhouse
gas emissions
• Compact Fluorescent Lamps in multiple branches of MFL were replaced with energy efficient LED lamps
• Conventional tube light signboards replaced with LED glow signboards
• Other initiatives such as buying second-hand laptops, used furniture also helps reduce the GHG emissions associated
with production of new products.
Going forward MFL aims to initiate more such projects and implement closer monitoring for these.

8. Provide details related to waste management by the entity:

Total Waste generated (in metric tonnes)
Plastic waste (A)
E-waste (B)
Bio-medical waste (C)
Construction and demolition waste (D) Data not Data not
Battery waste (E) captured yet captured yet
Radioactive waste (F)
Other Hazardous waste- ETP Sludge. (G)
Non-hazardous waste generated (H):
Total (A+B + C + D + E + F + G + H) - -
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations
(in metric tonnes)
Category of waste
(i) Recycled
(ii) Re-used
(iii) Other recovery operations
Total
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration
(ii) Landfilling
(iii) Other disposal operations (Sold to authorised recyclers)
Total - -
No
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy
adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and
the practices adopted to manage such wastes-
MFL intends to develop a robust waste management practice in line with the guidelines of the ESG framework, making
efforts to dispose of waste in the most responsible manner. MFL is in the financial services sector, and most waste streams
are non-hazardous comprising of office stationery, food waste etc.
MFL is conscious of paper usage in its operations, transactions, and customer communications. Being digitally inclusive,
MFL is continuously striving to focus on digital transformation and paperless working. To reduce plastic usage, single use
plastic water bottles are not being used in the MFL’s corporate office.
MFL will ensure that no hazardous electronic waste is sent from MFL to the landfill. Many of these are being utilised using
buyback policies with the vendor or refinishing them for extended usage. MFL have recently introduced E-pledge form
and OTP based agreements across all its branches. Across its offices and in the branches, MFL is focused to reduce paper
consumption, thereby reducing paper waste. Printing and photocopying operations by employees in the offices/branches
are constantly being monitored and they are advised to use less papers and more software’s.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
environmental approvals/clearances are required, please specify details:
Whether the conditions of environmental approval / clearance are
S.
Location of operations/offices Type of operations being complied with? (Y/N)
No.
If no, the reasons thereof and corrective action taken, if any.
Not Applicable.

Statutory
Reports
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in
the current financial year:
Name and brief EIA Notification Whether conducted by independent Results communicated in Relevant Web
Date
details of project No. external agency (Yes / No) public domain (Yes / No) link
Not Applicable.
12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India, such as the
Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
protection act and rules thereunder. If not, provide details of all such non-compliances:
The company is compliant with all the environmental rules and regulations
Specify the law / regulation Any fines / penalties / action taken by

S. Provide details of the non- Corrective action taken,
/ guidelines which was not regulatory agencies such as pollution control
No. compliance if any
complied with boards or by courts
Not Applicable
1. Provide break-up of the total energy consumed (in GJ) from renewable and non-renewable sources:
From renewable sources
Total electricity consumption (A) - -
Total fuel consumption (B) - -
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C) - -
From non-renewable sources
Total electricity consumption (D) 294,819 294,819
Total fuel consumption (E) 11,297 12,769
Energy consumption through other sources (F) - -
Total energy consumed from non-renewable sources (D+E+F) 306,117 307,589
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? If yes,

name of the external agency.
No
2. Provide the following details related to water discharged:

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment
- With treatment – please specify level of treatment
(ii) To Groundwater
- No treatment Given our nature of business, water consumption and
discharge are minimal and are not considered a significant
environmental aspect.
(iii) To Seawater
At rented facilities, discharge is managed by the owner and
- No treatment treated through respective municipal treatment facilities.
(iv) Sent to third parties
- No treatment
- With treatment – primary, secondary and tertiary
Total water discharged (in kilolitres) - -

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? If yes,
name of the external agency
No
3. Water withdrawal, consumption, and discharge in areas of water stress (in kilolitres): For each facility / plant
located in areas of water stress, provide the following information:
We do not have any operations in water stress areas
(i) Name of the area:
(ii) Nature of operations:
(iii) Water withdrawal, consumption, and discharge:
Water withdrawal by source (in kilolitres)
(i) Surface water - -
(ii) Groundwater - -
(iii) Third party water - -
(iv) Seawater / desalinated water - -
Total volume of water withdrawal (in kilolitres) - -
Total volume of water consumption (in kilolitres) - -
Water intensity per rupee of turnover (Water consumed / turnover) - -
Water intensity (optional) – the relevant metric may be selected by the entity - -
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) Into Groundwater
- No treatment - -
(iii) Into Seawater
- No treatment - -
(iv) Sent to third-parties
- No treatment - -
(v) Others
- No treatment - -
Total water discharged (in kilolitres) - -
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N)
If yes, name of the external agency.
No
4. Please provide details of total Scope 3 emissions & its intensity:

We do not measure Scope 3 emissions yet
Parameter Unit FY 2022-23 FY 2021-22
Total Scope 3 emissions Metric tonnes of - -
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 3 emissions per rupee of turnover - -
Total Scope 3 emission intensity (optional) – the relevant metric may be - -
selected by the entity
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N)

If yes, name of the external agency.
No

Statutory
Reports
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention
and remediation activities.
Not applicable since we do not have any operations in ecologically sensitive areas.
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide
details of the same as well as outcome of such initiatives:
Sr.
Initiative undertaken Details of the initiative Outcome of the initiative
No
1 - - -
2 - - -
3 - - -
4 - - -
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes, we have a detailed business continuity / disaster preparedness plan which can be found on the company website.
The objectives of disaster management are:
• Promoting a culture of prevention, preparedness and resilience at all levels through knowledge, innovation/
improvisation and education.
• Encouraging mitigation measures based on technology, traditional wisdom and environmental sustainability.
• Mainstreaming disaster management into the developmental/functional planning process.
• Establishing institutional and techno-legal frameworks to create an enabling environment and a compliance regime.
• Ensuring efficient mechanism for identification, assessment and monitoring of disaster risks.
• Following forecasting and early warning systems backed by responsive and failsafe communication with information
technology support.
• Promoting a productive partnership with the stakeholders to create awareness and contributing towards
capacity development.
• Ensuring efficient response and restoration with a caring approach towards the needs of the vulnerable/victims
and customers.
• Undertaking reconstruction as an opportunity to build disaster resilient structures for ensuring safer workplaces.
• Promoting productive and proactive partnership with the stakeholders in disaster management.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard?
The company intends to continually engage with its suppliers/value chain partners on the importance of environmental
aspects as highlighted in the ESG framework policy and in general to create awareness through trainings or workshops
as appropriate. As a part of its ongoing efforts, MFL intends to assess its value chain partners on any adverse impacts on
the environment caused from their operations.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
Data not available

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a
manner that is responsible and transparent
1. a. Number of affiliations with trade and industry chambers/ associations.

4
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such
body) the entity is a member of/ affiliated to.
S. Reach of trade and industry chambers/
Name of the trade and industry chambers/ associations
No. associations (State/National)
1 Federation of Indian Chamber of Commerce & Industries National
2 Association of Gold Loan Companies National
3 Confederation Of Indian Industry National
4 Kerala Non-Banking Finance Companies Association State
2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the
entity, based on adverse orders from regulatory authorities
Company has not received any adverse order from the regulatory authority.
Name of authority Brief of the case Corrective action taken

Not Applicable
1. Details of public policy positions advocated by the entity

Frequency of Review by Board
S. Public policy Method resorted for Whether information available Web Link, if
(Annually/ Half yearly/ Quarterly /
No. advocated such advocacy in public domain? (Yes/No) available
Others – please specify)
- - - - - -
PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current financial year.
Not Applicable
Whether conducted by Results communicated in

Name and brief SIA Notification Date of Relevant Web
independent external agency public domain
details of project No. notification link
(Yes / No) (Yes / No)
Not Applicable
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being
undertaken by your entity:
Not Applicable
S. Name of Project for which No. of Project Affected % of PAFs covered Amounts paid to PAFs in
State District
No. R&R is ongoing Families (PAFs) by R&R the FY (In INR)
Not Applicable

Statutory
Reports
3. Describe the mechanisms to receive and redress grievances of the community.

Grievances of various stakeholders including community are addressed as per the Grievance Redressal Policy for
Stakeholders available on the company website.
Weblink: https://cdn.muthootfinance.com/sites/default/files/pdf/Grievance-Redressal-Policy-for-Stakeholders.pdf
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2022-23 FY 2021-22
Directly sourced from MSMEs/ small producers
Data not yet captured
Sourced directly from within the district and neighbouring districts
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact
Assessments (Reference: Question 1 of Essential Indicators above):
Details of negative social impact identified Corrective action taken
Not Applicable
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
S. No. State Aspirational District Amount spent (In INR)
No CSR projects were undertaken in aspirational districts
3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized /vulnerable groups? (Yes/No)
Yes
(b) From which marginalized /vulnerable groups do you procure?

Data not available
(c) What percentage of total procurement (by value) does it constitute?

Data not available
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity
(in the current financial year), based on traditional knowledge.
We have not engaged with any entity during the reporting period for deriving or sharing any benefits from the intellectual
properties owned and acquired by us.
S. Intellectual Property based on Owned/ Acquired Benefit shared Basis of calculating

NO. traditional knowledge (Yes/No) (Yes / No) benefit share
Not Applicable
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge is involved.
Name of authority Brief of the Case Corrective action taken
Not Applicable

6. Details of beneficiaries of CSR Projects:

S. No. of persons benefitted from % of beneficiaries from vulnerable
CSR Project
No. CSR Projects and marginalized groups
1 Muthoot Snehasraya 108100 100%
2 Muthoot Aashiyana 184 100%
3 Muthoot Higher Education Scholarship 59 Not available
PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible
manner
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback -
The Company has a dedicated email ID viz. [email protected] and helpline numbers (South 99469 01212), (Rest
of India -78348 86464, 88006 75111, 011 46697744) to serve as contact points for raising grievances and complaints. A
grievance once received will be acknowledged by the grievance owner, within three working days of the grievance being
submitted. The mode of communication shall be in written format, over telephone, e-mail or verbal.
Complaints received from Regulators will be resolved by Principal Nodal Officer at Head Office accordingly. The timelines
as mandated by the respective regulator will be adhered to, as far as possible.
If a complaint is with respect to a particular branch, customer may contact the Branch Manager (BM) directly or by phone,
e-mail, or any other means, to get their grievance redressed. BM shall strive to resolve the complaint within the next
working day of receiving the grievance at the branch level itself.
If the grievance is not redressed within the next working day at the branch level itself, a complaint may be lodged to higher
authorities. To ensure an effective complaint redressal mechanism, the company has put in place a complaint redressal
system for all channel complaints.
To facilitate faster and complete resolution of complaints, a complaint letter /email should contain:
• Complainant’s name, address, and contact details (e-mail id, phone / mobile numbers etc.)
• Relationship information of stakeholders with the organization.
• Details of previous complaint / request lodged, if any.
• Details and nature of the complaint.
• Name of the company and branch at which the complainant had encountered the cause of action leading to the complaint.
• Copies of supporting documents, wherever applicable.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product Not Applicable
Safe and responsible usage Not Applicable
Recycling and/or safe disposal Not Applicable

Statutory
Reports
3. Number of consumer complaints in respect of the following:

FY 2022-23 FY 2021-22
Received Pending Received Pending
during the resolution at Remark during the resolution at Remark
year end of year year end of year
Data privacy 0 0 0 0
Advertising 0 0 0 0
Cyber-security 0 0 0 0
Delivery of essential services 0 0 0 0
Restrictive Trade Practices 0 0 0 0
Unfair Trade Practices 0 0 0 0
Other: Complaints were Complaints were
Loans & Advances 775 received in the 845 received in the
last month of last month of
Staff Behaviour 35 20
the year. These the year. These
Others 187 1 were resolved 168 10 were resolved
successfully successfully
immediately after immediately after
the close of the close of
FY 22-23 FY 21-22
4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall
Voluntary recalls Not Applicable Not Applicable
Forced recalls Not Applicable Not Applicable
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If
available, provide a web-link of the policy. –
Yes
The data privacy policy can be accessed at https://www.muthootfinance.com/privacy-policy
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services-
No corrective action was needed
1. Channels / platforms where information on products and services of the entity can be accessed (provide web
link, if available).
The information can be accessed through our website https://www.muthootfinance.com/
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services
The Fair Practices Code from MFL has been framed with a view to provide to all its stake holders, especially customers
an effective overview of the practices followed by the Company while offering its products and services. This has been
prepared taking into account the “Guidelines on Fair Practices Code for NBFCs” issued by the RBI and is updated from
time to time and aims to enable customers to take informed decisions in respect of the facilities and services offered by
the Company.

Inspirational campaigns such as “Sunheri Soch”, enabled MFL to extend the reach deeper into mass audiences, influencing
new and potential customers for the flagship Gold Loan product for which information was disseminated through offline
and online channels.
Other campaigns like the “Haathi Pe Bharosa Karogey Toh Pakka Jeetogey”, had a multi-media release across television,
print, outdoor, internet and point of sale, and turned out to be one of our most successful campaigns, translating into
increase in gold loan conversions and visibility on digital platforms.
Digital initiatives like the Gold Unlocker, AI Powered chat engine, iMuthoot and Muthoot online were all strengthened to
always provide customers with a seamless and safe digital experience with help within reach.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

The company tries to engage with its customers through various communication channels, and ensures they are updated
on latest services and disruptions / changes if any. Modes of communication may include digital or offline channels based
on the criticality of disruption. Information is usually disseminated through websites, letters, e-mails, SMS, various
online Apps of MFL.
4. Does the entity display product information on the product over and above what is mandated as per local
laws? If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction
relating to the major products / services of the entity, significant locations of operation of the entity or the
entity as a whole? (Yes/No)
Yes. The company maintains continuous and transparent communication with its customers and periodically conducts
customer satisfaction surveys to improve on identified pain points. Product/service-related information is readily
available on the website and also in branches. From time to time, branding and marketing campaigns also help display
such information to the consumers. Other useful apps such as the iMuthoot and Muthoot online assist with product/
service information transparency and awareness.
Going forward, the company intends to conduct annual customer satisfaction surveys to gain feedback on major products/
services.
5. Provide the following information relating to data breaches:
a. Number of instances of data breaches along-with impact

No instances of data breach were reported or observed for FY 2023.
b. Percentage of data breaches involving personally identifiable information of customers

Not applicable since there were no data breaches.
For and On Behalf of the Board of Directors
Sd/- Sd/-
DIN: 00018235 DIN: 00016787
Place: Kochi,

Statutory
Reports
ANNEXURE- 4
AOC - 2
Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014:
1. Details of contracts or arrangements or transactions not at arm’s length basis:

Nil
2. Details of material contracts or arrangement or transactions at arm’s length basis:

Duration of Salient terms of the
Name(s) of the related Nature of contracts/
the contracts / contracts or arrangements Date(s) of approval Amount paid as
party and nature of arrangement/
arrangements/ or transactions including by the Board, if any: advances, if any:
relationship transactions
transactions the value, if any:
NIL
Sd/- Sd/-
DIN: 00018235 DIN: 00016787
Place: Kochi,

ANNEXURE- 5
DECLARATION REGARDING RECEIPT OF CERTIFICATE OF INDEPENDENCE FROM ALL INDEPENDENT
DIRECTORS
I, Mr. George Alexander Muthoot, Managing Director of the Company do hereby confirm that the Company has received from all
the independent directors namely Mr. Vadakkakara Antony George, Mr. Chamacheril Mohan Abraham, Mr. Ravindra Pisharody,
Justice (Retd.) Jacob Benjamin Koshy, Mr. Jose Mathew, Ms. Usha Sunny, and Mr. Abraham Chacko a certificate stating their
independence as required under Section 149(6) of the Companies Act, 2013 and Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
Sd/-
George Alexander Muthoot
Managing Director
DIN: 00016787
Place: Kochi

Statutory
Reports
ANNEXURE- 6
Report On Corporate Governance
1. Company’s Philosophy on Corporate Your Company had aligned and have its corporate
Governance governance practice in a manner to achieve the
Good corporate governance helps to build an objectives of principles as envisaged in SEBI (Listing
environment of trust, transparency and accountability Obligations and Disclosure Requirements) Regulations,
necessary for fostering long-term investment, financial 2015 (“SEBI Listing Regulations”).
stability and business integrity, thereby supporting
stronger growth. 2. Board of Directors
Effective fundamentals of Company which is ‘unchanging A. Composition of Board
values in changing time’ is frequently lauded and The Board of Directors of your Company has an optimum
followed practice in your Company and is the founding combination of Executive and Non-Executive Directors
stone of your Company and key to effective governance in compliance with the requirements of Regulation
and business with an unblemished track record. 17 of SEBI Listing Regulations, and Section 149 of the
Companies Act, 2013 (“Act”).
The company’s Philosophy of Corporate Governance
is aimed at transparency in corporate decision- As of March 31, 2023, Company’s Board consisted of
making, value creation, and keeping the interests of all 14 Directors of which 7 Directors are Executive Non-
stakeholders protected in the most inclusive way. The Independent Directors (50%) and 7 Directors are
principal of inclusion has been the foundation of our Independent Directors (50%). Your Company believes
business and governance practices. that the Independent Directors bring with them the
rich experience, knowledge and practices followed in
Corporate Governance has always been an integral other companies resulting in imbibing the best practices
element of the Company to have a system of proper followed in the industry.
accountability, transparency, and responsiveness
and for improving efficiency and growth as well as The day-to-day management of affairs of your Company
enhancing investor confidence. The company believes is managed by Managing Director and Whole-Time
in sustainable corporate growth that emanates from Directors who function under the overall supervision
the top management down through the organisation to and guidance of the Board of Directors. The Board of
the various stakeholders which is reflected in its sound Directors of your Company plays the primary role as the
financial system and enhanced market reputation. trustees to safeguard and enhance stakeholders’ value
through its effective decisions and supervision.
The names, categories, and other details of Directors as of March 31, 2023 are as follows:
Number of Number of Committee
Directorship in other listed
Date of Directorships in Other positions held in other
entity
Name of Directors Category Present Public Companies Public Companies
Appointment Name of Listed
Chairman Member Chairman Member Category
Entity
George Jacob Muthoot Executive, 01 Apr 2020 0 3 0 1 Nil NA
Chairman & Whole Non‑Independent
Time Director (Promoter)
(DIN: 00018235)
George Executive, 01 Apr 2020 0 4 0 0 Nil NA
Alexander Muthoot Non‑Independent
Managing Director (Promoter)
(DIN: 00016787)
George Thomas Executive, 01 Apr 2020 0 3 0 0 Nil NA
Muthoot Non‑Independent
Whole Time Director (Promoter)
(DIN: 00018281)

Number of Number of Committee

Directorship in other listed
Date of Directorships in Other positions held in other
entity
Name of Directors Category Present Public Companies Public Companies
Appointment Name of Listed
Chairman Member Chairman Member Category
Entity
Alexander George Executive, 30 Sep 2020 0 1 0 0 Nil NA
Whole Time Director Non‑Independent
(DIN: 00938073) (Promoter Group)
George Muthoot Executive, 15 Dec 2021 0 2 0 0 Nil NA
George Non‑Independent
Whole Time Director (Promoter Group)
(DIN: 00018329)
George Alexander Executive, 15 Dec 2021 0 3 0 1 Nil NA
Whole Time Director Non‑Independent
(DIN: 00018384) (Promoter Group)
George Muthoot Jacob Executive, 15 Dec 2021 0 7 0 4 V Guard Independent
Whole Time Director Non‑Independent Industries Director
(DIN: 00018955) (Promoter Group) Limited
Jose Mathew Non-Executive, 30 Sep 2020 0 0 0 0 Nil NA
(DIN: 00023232) Independent
Jacob Benjamin Koshy Non-Executive, 30 Sep 2020 0 0 0 0 Nil NA
Ravindra Pisharody Non-Executive, 31 Aug 2022 0 4 1 3 Savita Oil Independent,
(DIN: 01875848) Independent Technologies Non-Executive
Limited
Vadakkakara Antony Non-Executive, 31 Aug 2022 0 2 0 1 Thejo Whole-time
George Independent Engineering Director
(DIN: 01493737) Limited
Chamacheril Mohan Non-Executive, 31 Aug 2022 0 1 1 0 Nil NA
Abraham Independent
(DIN: 00628107)*
Usha Sunny Non-Executive, 30 Nov 2020 0 0 0 0 Nil NA
Abraham Chacko Non-Executive, 18 Sep 2021 0 3 2 3 Nil NA
*Mr. Chamacheril Mohan Abraham was appointed as a Director on the Board of Muthoot Finance Limited with effect from August 31, 2022.
Other directorships mentioned above do not include and Section 149(6) of the Act along with rules framed
alternate directorships, directorships of private limited thereunder. In terms of Regulation 25(8) of SEBI Listing
companies, Section 8 companies under the Act and of Regulations, they have confirmed that they are not aware
Companies incorporated outside India. Chairmanships/ of any circumstance or situation that exists or may be
Memberships of Board Committees include only Audit reasonably anticipated that could impair or impact
Committee and Stakeholders Relationship Committees. their ability to discharge their duties. Based on the
For determination of limit of the Board Committees, declarations received from the Independent Directors,
chairpersonship and membership of the Audit the Board of Directors has confirmed that they meet the
Committee and Stakeholders’ Relationship Committee criteria of independence as mentioned under Regulation
has been considered as per Regulation 26(1)(b) of SEBI 16(1)(b) of the SEBI Listing Regulations and that they
Listing Regulations. are independent of the management. Further, the Board
is satisfied of the integrity, expertise, and experience

All Independent Directors meet the criteria of (including proficiency in terms of Section 150(1) of the
independence as specified in SEBI Listing Regulations Act and applicable rules thereunder) of all Independent
and the Act and have furnished individual declarations Directors on the Board. The Independent Directors have
to the Board that they qualify the conditions of being confirmed that they have included their names in the
an Independent Director in compliance of requirements data bank of Independent Directors maintained with
under SEBI Listing Regulations and the Act. Independent the Indian Institute of Corporate Affairs in terms of
Directors are non-executive directors as defined under Section 150 of the Act read with Rule 6 of the Companies
Regulation 16(1)(b) of the SEBI Listing Regulations (Appointment & Qualification of Directors) Rules, 2014.

Statutory
Reports
None of the Independent Directors are related to any other Directors on the Board of Directors in terms of the definition of
“relative” given under the Act. Necessary disclosures regarding committee positions in other public companies as at March 31,
2023 have been made by the Directors.
None of the Directors on the Board:
• holds directorships in more than 10 public companies;
• serves as Director or as Independent Director in more than 7 listed entities; and
• who are the Executive Directors serves as Independent Director in more than 3 listed entities.
Whole Time Directors and Managing Director on the Board are related to each other.
Details of change in composition of the Board during the current and previous financial year
Sl.
Name of Director Capacity Nature of change Effective date
No.
1 Pratip Chaudhuri Independent Director Retirement August 31, 2022
2 Chamacheril Mohan Abraham Independent Director Appointment August 31,2022
Meetings, Attendance of each of Directors and other Details

During the Financial Year 2022-23, your Board of Directors met 7 times on 18-04-2022, 26-05-2022, 06-08-2022,12-08-2022,
10-11-2022, 06-02-2023 and 09-03-2023. Your Board has met at least once in a calendar quarter and the maximum gap between
these Board Meetings did not exceed one hundred and twenty days. The requisite quorum was present for all the meetings. The
composition and attendance of the Members in the Board meetings held during the FY 2022-23 and the Annual General Meeting
(AGM) held on the 31st of August 2022 are as follows:
Board Meeting Dates

AGM Held Attended
1 2 3 4 5 6 7
Name of Directors 31 August during the during the
2022 18-04- 26-05- 06-08- 12-08- 10-11- 06-02- 09-03- FY FY
2022 2022 2022 2022 2022 2023 2023
George Jacob Muthoot P P P P P P P P 7 7
George Alexander Muthoot P P P P P P P P 7 7
George Thomas Muthoot P P A P P P P A 7 5
Alexander George P P P P P P P P 7 7
George Muthoot George P P A P A P P P 7 5
George Alexander P P P P A P P A 7 5
George Muthoot Jacob P P P P P P P P 7 7
Jose Mathew P P P P P P P A 7 6
Jacob Benjamin Koshy P P P P P A P P 7 6
Ravindra Pisharody P P P P P P P P 7 7
Vadakkakara Antony George P P A P P A P P 7 5
Pratip Chaudhuri* P P P P P - - - 4 4
Usha Sunny P P P P P P P P 7 7
Abraham Chacko P P P P P P P P 7 7
Chamacheril Mohan NA NA NA NA NA P P P 3 3
Abraham**
P = Present; A = Absent, NA = Not Applicable
*Mr. Pratip Chaudhuri retired from the position of Independent Director with effect from August 31, 2022.
**Mr. Chamacheril Mohan Abraham was appointed as a Director on the Board of Muthoot Finance Limited with effect from August 31, 2022.
During FY 2022-23, information as mentioned in Part A of Schedule II of the SEBI Listing Regulations, was placed before the
Board for its consideration.

B. Meeting of Independent Directors

In compliance with requirement under Schedule IV of the Act and SEBI Listing Regulations, a separate meeting of the
Independent Directors was held on 05 February 2023 The meeting was attended by all Independent Directors. Independent
Directors, at the meeting, reviewed and discussed various matters as required under the Act and SEBI Listing Regulations.
C. Performance Evaluation of Board, Committees and Directors

The Board of Directors carried out annual evaluation of its own performance, its Committees and individual Directors
based on the criteria and framework adopted by the Board and in accordance with the existing regulations.
The Board has identified the following skills / expertise / competencies fundamental for the effective functioning of the
Company which are currently available with the Board:
Knowledge of Financial Service Industry Understanding of the functioning of NBFC’s across the length and breadth of the country
and its regulatory jurisdictions.
Strategy and Planning Appreciation of long-term trends, strategic choices, and experience in guiding and leading
management teams to make decisions in uncertain environments.
Governance, Ethics and Regulatory Experience in developing governance practices, serving the best interests of all
Oversight stakeholders, maintaining board and management accountability, building long term
effective stakeholder engagements, and driving corporate ethics and values.
Audit, Risk Management, Internal Control Experience in both internal and external audit of Companies / body corporates in
financial services industry.
Pursuant to Regulation 34(3) read with Schedule V Part (C) (2)(h) of SEBI Listing Regulations, the Board of Directors has
identified the following requisite skills/expertise and competencies of the Board of Directors for the effective functioning
of the Company. The profiles of Directors are available on the website of the Company at https://www.muthootfinance.
com/our-directors
Skills / Expertise / Core Competencies

Governance,
Name of Directors Knowledge of Audit, Risk
Strategy and Ethics and
Financial Service Management,
Planning Regulatory
Industry Internal Control
Oversight
George Jacob Muthoot √ √ √
George Alexander Muthoot √ √ √ √
Managing Director
George Thomas Muthoot √ √ √
Whole Time Director
Alexander George √ √ √
Whole Time Director
George Muthoot George √ √ √
Whole Time Director
George Alexander √ √ √
Whole Time Director
George Muthoot Jacob √ √ √
Whole Time Director
Jose Mathew √ √ √ √
Jacob Benjamin Koshy √ √
Ravindra Pisharody √ √ √ √
Vadakkakara Antony George √ √ √ √
Chamacheril Mohan Abraham √ √ √ √
Usha Sunny √ √ √ √
Abraham Chacko √ √ √ √

Statutory
Reports
The eligibility of a person to be appointed as a Director as a whole, the Chairperson of the Company, quantity
of the Company is dependent on whether the person and timeliness of flow of information was carried out
possesses the requisite skill sets identified by the Board by independent directors of the Company. Criteria
as above and whether the person is a proven leader in for evaluation includes qualification, experience,
running a business that is relevant to the Company’s age, participation, attendance, knowledge, quality
business or is a proven academician in the field relevant of discussion, beneficial contribution etc. Annual
to the Company’s business. Being a company in the Performance Incentive and Commission payable to
financial services industry, the Company’s business Directors were decided on the basis of performance
runs across different geographical markets across review by the Board of Directors of your Company
the country. The Directors so appointed are drawn without the presence of the Director being reviewed.
from diverse backgrounds and possess special skills/
knowledge about the financial services industry.
The Committees were reviewed by the Board of
Directors and whenever necessary the required changes
The evaluation of performance of each Independent are made in Committees by way of re- constitution to
Director was carried out by all the directors except make them more effective by change in constitution
the Independent Director evaluated. The review of the and composition.
performance of non-independent directors, the Board
Brief profile of each of the directors on the Board are given below:
Sl.
Name of the Director & Designation Profile
No.
1. George Jacob Muthoot George Jacob Muthoot has a degree in civil engineering from Manipal University and is a
Chairman & Whole Time Director businessman by profession. He has over three decades of experience in managing businesses
operations in the field of financial services.
2. George Alexander Muthoot George Alexander Muthoot is a chartered accountant who qualified with first rank in Kerala
Managing Director and was ranked 20th overall in India, in 1978. He has a bachelor’s degree in commerce from
Kerala University where he was a gold medallist. He was also awarded the Times of India
group Business Excellence Award in customised Financial Services in March 2009. He has
over three decades of experience in managing businesses in the field of financial services.
3. George Thomas Muthoot George Thomas Muthoot is a businessman by profession. He is an undergraduate. He has
Whole Time Director over three decades of experience in managing businesses operating in the field of financial
services. He has received the ‘Sustainable Leadership Award 2014’ by the CSR congress in the
individual category.
4. Alexander George Alexander George is an MBA graduate from Thunderbird, The Garvin School of International
Whole Time Director Management, Glendale, Arizona, USA. He has been heading the marketing, operations, and
international expansion of the Company. Under his dynamic leadership and keen vision, the
Company has enhanced its brand visibility through innovative marketing strategies and
has also implemented various IT initiatives that have benefitted both the customers and
employees. Currently manages the entire business operations of North, East and West India
of Muthoot Finance
5. George Muthoot George George Muthoot George completed his Bachelor’s Degree in Hospitality Management from
Whole Time Director Welcome group Graduate school of Hotel Administration in Manipal and Mr. George Muthoot
George pursued his Master’s degree at the prestigious Essec-Cornell University in Paris,
France. George Muthoot George is also the recipient of the Distinguished Alumni award from
Manipal University (2015) and the ITC Chairman’s award for his contribution to the field of
hospitality
6. George Alexander George Alexander has done his Master’s in Business Administration from University of North
Whole Time Director Carolina’s Kenan & Flagler Business School and holds a Bachelor’s degree in Mechanical
Engineering from University of Kerala - TKM College of Engineering. He has over 15 years
of experience in the field of financial services. He also serves on the board of three other
subsidiary companies - Asia Asset Finance PLC, Muthoot Insurance Brokers Private Limited
and Belstar Microfinance Limited. Prior to joining his family business, George Alexander had
worked for Kotak Mahindra Bank in India.
7. George Muthoot Jacob George Muthoot Jacob completed his Bachelor’s degree in Law, BA.LLB (Hons), from the
Whole Time Director National University of Advanced Legal Studies, Kochi. Further, he did his LLM in International
Economic Law from the University of Warwick, UK and his Masters in Management from CASS
Business School, London. Mr. George Muthoot Jacob also serves as an Independent Director on
the Board of V Guard Industries Limited, one of the listed Companies from Kerala.

Sl.
No.
8. Jose Mathew Jose Mathew is a qualified chartered accountant. He was employed with Kerala State Drugs &
Independent Director Pharmaceutical Limited, a Government of Kerala undertaking from 1978 in various positions
and demitted office as managing director in 1996 – 97. He also served as the secretary
and general manager finance of Kerala State Industrial Enterprises, a holding company of
Government of Kerala as the member of the first Responsible Tourism Committee constituted
by Department of Tourism, Government of Kerala.
He has been honoured with various awards and recognitions in tourism, including
awards from Kerala Travel Mart. He was also honoured with the CNBC ‘Awaaz’ Award, for
sustainability in Responsible Tourism in the year 2013.
9. Jacob Benjamin Koshy Jacob Benjamin Koshy is the former Chief Justice of the High Court of Judicature at Patna. He
Independent Director specialized in indirect taxation, labour and industrial law and appeared in various courts
throughout India. Elevated as a judge of the High Court of Kerala, he became the Acting Chief
Justice of the High Court of Kerala in December 2008. He was appointed as chairman of the
Appellate Tribunal for Forfeited Property New Delhi on April 08, 2010. In May 2010 he was
given additional charge as chairman of the Appellate Tribunal under the Prevention of Money
Laundering Act. At the request of the then Chief Minister of Kerala, he assumed charge as the
chairperson of the Kerala State Human Rights Commission and on completion of the five-year
tenure, retired on September 04, 2016.
10. Ravindra Pisharody Ravindra Pisharody is a corporate business leader and management professional with over
Independent Director 35 years of experience across diverse industries. He super-annuated recently, in September
2017, as Whole- Time Director on the Board of Tata Motors Limited, where he was heading the
Commercial Vehicles Business Unit. During his career, he has held national/ regional/ global
leadership roles in Sales, Marketing, Business Management and Strategy Development. He
also undertakes Coaching and Mentoring assignments.
At Tata Motors, He was leading the large Commercial Vehicles Business with around I 40,000
crores revenue; the business footprint included a sizeable overseas presence across over 25
countries. He chaired Joint Ventures including Tata-Cummins and Tata–Marcopolo, as well as
overseas companies such as Tata Daewoo (Korea) and Tata Motors South Africa, and served
on the boards of Indian subsidiaries like Tata Motors Finance Limited.
His previous corporate roles include an 18-year stint with Philips India, where his last role
was Vice-President, Consumer Electronics; and 8 years in BP/ Castrol, where he was a member
of the Board of Directors of Castrol India Limited, and simultaneously Regional Director for
Africa, Middle East and India, and subsequently based in Singapore as Head, Global Marketing
for the Motorcycles and Scooters category.
He is exposed to the business environment in most parts of the world, particularly in emerging
markets as a result of overseeing the substantial growth in Tata Motor’s international
business and also his global role with BP Singapore. He has considerable expertise in retail and
distribution models in the automotive, auto accessories and consumer durables industries.
His expertise is in sales and marketing, as well as Business Strategy. He has also been active in
industry bodies- he has been a member of the Advertising Standards Council of India (ASCI),
a council member and subsequently Chairman of the Audit Bureau of Circulation (ABC), and
Vice President of the Society of Indian Automobiles Manufacturers (SIAM) in 2016-17.
11. Vadakkakara Antony George Vadakkakara Antony George (V.A. George) is a Certified Director in Corporate Governance by
Independent Director INSEAD, France. An Alumni of International Institute for Management Development (IMD),
Lausanne; Mr. George has also participated in the Management Programmes of Harvard
Business School and Stanford School of Business.
Mr. George has more than four decades of experience in the corporate field, in both Public and
Private sectors and was the Past Chairman of Equipment Leasing Association of India. Apart
from being the Whole Time Director of Thejo Engineering Limited, Chennai; Mr. George is
also an Independent Director on the Board of Belstar Microfinance Limited. He is an Adjunct
Faculty at Loyola Institute of Business Administration and is also on the Governing Boards of
three Higher Education Institutions. Mr. V.A. George holds a Bachelor’s Degree in Mechanical
Engineering and is also an Associate of the Indian Institute of Banking and Finance.
12. Usha Sunny Mrs. Usha Sunny is an experienced banking professional with more than 3 decades of
Independent Director experience. Mrs. Usha Sunny has worked with Mashreq Bank PSC, Dubai, Standard Chartered
Bank, Dubai, Indian Overseas Bank and Kerala State Drugs and Pharmaceuticals Limited in
diversified roles. Mrs. Usha Sunny is a member of the Institute of Cost Accountants of India,
New Delhi and holds a master’s degree in Commerce from University of Kerala.

Statutory
Reports
Sl.
No.
13. Abraham Chacko Mr. Abraham Chacko is an experienced banking professional with an experience of over 3
Independent Director decades in India and abroad. During his early career, he served HSBC India for a period 14
years and has held varied roles over there. He was also the Country Manager in ABN AMRO
Bank N.V before his elevation as the Executive Director at the Bank. He was also employed
as the Executive Director at The Royal Bank of Scotland for a span of 2 years and he retired
as Executive Director and the President - Treasury from The Federal Bank Limited, India,
after serving for a period 4 years. Post retirement from a full-time career, he is currently the
independent director of few companies.
14. Chamacheril Mohan Abraham Mr. Chamacheril Mohan Abraham is a senior finance professional and Chartered Accountant,
having passed Intermediate and Final Examinations securing 11th Rank (1974) and 13th Rank
(1976) respectively. He was the Vice Chairman and Managing director of J Thomas & Co. Pvt.
Ltd, the largest and oldest tea auctioneers in the world. He retired from the Company on 31st
March 2015 after putting in 38 years of service and was Consultant for the Company till 31st
March 2016. He was a trustee of VAANI, Deaf Children’s Foundation which is a registered
Trust and works towards bringing language and communication into the lives of deaf children
and their families across India. He was on the Board of Directors of J Thomas Finance Ltd.,
Tea Consultancy and Plantation Services (India) Ltd., and Tea Quotas Private Ltd. He was also
member of Committee of Tea Trade Association and Chamber of Commerce. He is presently a
Partner in Chartered Accountancy Firm, M/s. K J Anto & Co, Cochin.
Pursuant to Clause C(2)(i) of Schedule V read with the Board and, the business strategies, operations review,
Regulation 34(3) of SEBI Listing Regulations, in the quarterly and annual results, review of Internal Audit
opinion of the Board, all the independent directors Report and Action Taken Report, statutory compliances,
fulfil the conditions as specified in the SEBI Listing risk management, operations of its Subsidiaries etc.
Regulations and are independent of the management. This enables the Directors to get a deeper insight into
Certificate from Company secretary in practice the operations of the Company and its subsidiaries.
certifying that none of the Directors on the Board have Functional Heads of various departments are required
been debarred or disqualified from being appointed or to give presentation in Board Meeting to familiarise the
continuing as Director of the Company by SEBI/Ministry Board with their activities and allied matters. Company
of Corporate Affairs or any other statutory authority is held a separate training and familiarisation programme
annexed as Annexure-D to this report. for Independent Directors during the financial year
which was conducted by experts to gain familiarisation
with change in regulations especially in SEBI Listing
D. Familiarisation Programme
Regulations and the Act and on allied matters including
The Company has adopted a structured orientation of duties of Independent Directors and performance
Independent Directors at the time of their joining so as evaluation. The details of familiarisation program
to familiarise them with the Company- its operations, are available on the website of the company at www.
business, industry and environment in which it functions muthootfinance.com
and the regulatory environment applicable to it. The
Company updates the members of Board of Directors
on a continuing basis on any significant changes therein Committees and its terms of reference
and provides them an insight to their expected roles The Board has constituted various sub-committees with
and responsibilities so as to be in a position to take specific terms of reference and scope in compliance
well-informed and timely decisions and contribute with the provisions of the Act, SEBI Listing Regulations
significantly to the Company. and RBI Directions. The composition of the Board
Committees is available on the Company’s website
The Company through its Managing Director/Senior https://www.muthootfinance.com/investors/board_
Managerial Personnel makes presentations regularly to committees and are also stated herein.

Details of various committees of the Board, as required to be constituted under various acts and regulations, as at March
31, 2023 are as under:
Jose Mathew (Chairman)

Vadakkakara Antony George
Audit Committee
Usha Sunny
Jacob Benjamin Koshy (Chairman)

Nomination and
Jose Mathew
Remuneration Committee

Stakeholders Ravindra Pisharody
Relationship Committee Abraham Chacko
George Muthoot Jacob

Board of Directors Risk Management Committee George Alexander Muthoot
Chamacheril Mohan Abraham
George Alexander

Asset Liability Vadakkakara Antony George
Management Committee George Alexander Muthoot
Abraham Chacko

Jose Mathew
Corporate Social & Business
Responsibility Committee
George Muthoot George (Chairman)

ESG Committee
Ravindra Pisharody

Policy Review Committee
Usha Sunny
Abraham Chacko
Audit Committee
The Audit Committee of the Board is constituted under Section 177 of the Act read with Rule 6 & 7 of Companies (Meetings
of Board and its Powers) Rules, 2014, Regulation 18 of the SEBI Listing Regulations and Reserve Bank of India directions/
guidelines.

Statutory
Reports
Composition and Attendance

As on March 31, 2023, the Audit Committee of the Board consisted of four Members out of which three are Non - Executive
Independent Directors. All the Members of the Committee are financially literate and have accounting and financial
management expertise. The Company Secretary of the Company acts as the Secretary to the Committee.
The composition and attendance of the Members at the Audit Committee meetings held during the FY 2022-23 are
as follows:
Designation Audit Committee Meeting Dates Held Attended

Name of Nature of
in the 1 2 3 4 5 6 during the during the
Directors Directorship
Committee 18.04.2022 25.05.2022 02.08.2022 11.08.2022 09.11.2022 05.02.2023 FY FY
Jose Mathew Chairman Independent P P P P P P 6 6

Director
Vadakkakara Member Independent P P P P A P 6 5
Antony George Director
George Member Managing P P P P P P 6 6
Alexander Director
Muthoot
Usha Sunny Member Independent P P P P P P 6 6
Director
Brief Terms of reference of the Audit • Approval or any subsequent modification of

Committee: transactions of the Company with related parties;
• Oversight of the company’s financial reporting • Carrying out any other function as is mentioned in the
process and the disclosure of its financial information terms of reference of the Audit Committee.
to ensure that the financial statement is correct,
sufficient and credible; Nomination and Remuneration Committee
• Recommending to the Board, the appointment, re- The Nomination and Remuneration Committee is set
appointment and, if required, the replacement or up by the Board in compliance with the Section 178
removal of the statutory auditor and the fixation of (1) of the Act and Regulation 19 of the SEBI Listing
audit fees or any payment to statutory auditors for Regulations. The Committee is entrusted with combined
any other services; advisory responsibilities concerning the nomination for
appointment or removal of Directors and Key Managerial
• Reviewing, with the management, the annual
Personnel and recommendation of remuneration policy.
financial statements and Auditors Report thereon
The Company Secretary of the Company acts as the
before submission to the board for approval;
Secretary to the Committee.
• Discussion with internal auditors on any significant
findings and follow up there on;
Composition and attendance
• To review the functioning of the Whistle As at March 31, 2023, the Nomination and Remuneration
Blower mechanism; Committee comprise of three Non - Executive
Independent Directors.
The composition and attendance of the Members at the meetings of the Nomination and Remuneration Committee held
during the FY 2022-23 are as follows:
Nomination and Remuneration
Committee Meeting Dates Attended
Designation in the Held during
Name of Directors Nature of Directorship during the
Committee 1 2 the FY
FY
25.05.2022 02.08.2022
Jacob Benjamin Koshy Chairman Independent Director P P 2 2
Jose Mathew Member Independent Director P P 2 2
Vadakkakara Antony George Member Independent Director P P 2 2

Brief Terms of reference of the Nomination and Name Designation

Remuneration Committee: Eapen Alexander Executive Director (IT & Digital
Initiatives)
• Identifying persons who are qualified to become
K. R. Bijimon Executive Director & Chief Operating
Directors and who may be appointed as KMP’s in Officer
accordance with Criteria as laid down and recommend
Oommen K Mammen Chief Financial Officer
to Board their appointment and removal;
Rajesh A Company Secretary
• Review and carry out every Director’s performance,
There was no change in Senior Management during the
the structure, size and composition including
financial year 2022-23.
skills, knowledge and experience required of the
Board compared to its current position and make
Managerial Remuneration:
recommendations to the Board with regard to
any changes;
Board of Directors of your Company aligns the
remuneration of Directors with the long-term interest
• Plan for the succession planning for directors in the of the Company and its stakeholders. The non-executive
course of its work, taking into account the challenges Independent Directors were paid sitting fees of
and opportunities facing the Company, and what I 65,000/- for each of the Board meeting attended and
skills and expertise are therefore needed on the I 20,000/- for Committee Meetings attended. There are
Board in the future; no other pecuniary relationships or transactions by
• Determine and agree with the Board the framework Non-Executive Directors with the Company.
for broad policies for criteria for determining The Managing Director and Executive Directors of the
qualifications, positive attitudes and independence Company were paid remuneration as per terms of their
of a director and recommend to the Board policies, appointment. No other remuneration was paid to the
relating to remuneration for the Directors, Key Directors. The criteria for payment of remuneration
Managerial Personnel and other employees; to non- executive directors are in accordance with
• Review the on-going appropriateness and relevance Nomination and Remuneration Policy of the Company
of the remuneration policy; and they are eligible for commission within limits
approved by the shareholders of the Company. Company
• Formulate ESOP plans and decide on future grants; have not given any options under ESOP Plan to any
members of Board of Directors.
Senior Management:
As at March 31, 2023, the Senior Management of the Nomination and Remuneration Policy of the
Company comprise of the following officials: Company is available at website of the Company at
www.muthootfinance.com/policy/policy-investor
Details of remuneration paid to Directors including sitting fees paid during the FY 2022-23 are given below:
Rupees in Millions
No. of equity
Sl. Salary
Name of Directors Category Commission shares held as on
No. Sitting fees Allowances & Total
Paid March 31, 2023
Perquisites
1 George Jacob Muthoot Chairman & Whole ₋ 222.06 - 222.06 4,36,30,900
Time Director
2 George Alexander Muthoot Managing Director ₋ 222.06 - 222.06 2,36,30,900
3 George Thomas Muthoot Whole Time Director ₋ 222.06 - 222.06 4,36,30,900
4 Alexander George Whole Time Director - 222.06 - 222.06 2,22,89,710
5 George Muthoot George Whole Time Director - 20.74 - 20.74 2,22,89,710
6 George Alexander Whole Time Director - 20.74 - 20.74 1,75,25,000
7 George Muthoot Jacob Whole Time Director - 20.74 - 20.74 1,50,50,000
8 Jose Mathew Independent Director 0.84 - 1.45 2.29 -
9 Jacob Benjamin Koshy Independent Director 0.66 - 1.45 2.11 -
10 Ravindra Pisharody Independent Director 0.62 - 1.45 2.07 -
11 Vadakkakara Antony George Independent Director 0.61 - 1.45 2.06 -
12 Usha Sunny Independent Director 0.64 - 1.45 2.09 -
13 Abraham Chacko Independent Director 0.56 - 1.45 2.01 -
14 Chamacheril Mohan Abraham* Independent Director 0.30 0.85 1.15 100
*Mr. Chamacheril Mohan Abraham was appointed as a Director on the Board of Muthoot Finance Limited with effect from August 31, 2022.

Statutory
Reports
Stakeholders Relationship Committee

In compliance with the provisions of Section 178 (5) of the Act and Regulation 20 of the SEBI Listing Regulations, the
Board has constituted a Stakeholders Relationship Committee to redress the grievances of shareholders, debenture
holders and other stakeholders. The Company Secretary of the Company acts as the Secretary to the Committee.

The composition and attendance of the Members at the Stakeholders Relationship Committee meetings held during the
FY 2022-23 are as follows:
Stakeholders Relationship Committee Meeting Dates Attended

Designation in Nature of Held during
Name of Directors 1 2 3 4 during the
the Committee Directorship the FY
25.05.2022 11.08.2022 09.11.2022 05.02.2023 FY
Jacob Benjamin Chairman Independent P P P P 4 4

Koshy Director
George Thomas Member Whole-Time A P P NA 3 2
Muthoot* Director
Ravindra Pisharody Member Independent P P A P 4 3
Director
George Muthoot Member Whole-Time NA NA NA P 1 1
Jacob** Director
Abraham Chacko** Member Independent NA NA NA P 1 1
Director
* Mr. George Thomas Muthoot stepped down as a member of the committee with effect from November 10.2022
**Mr. George Muthoot Jacob and Mr. Abraham Chacko were appointed as members of the committee with effect from November 10, 2022
Brief Terms of reference of the Stakeholders Relationship Committee:

• To approve or otherwise deal with applications for transfer, transmission, transposition and mutation of shares and
certificates including duplicate, split, sub-division or consolidation of certificates and to deal with all related matters;
and also to deal with all the matters related to de-materialisation or re-materialisation of securities, change in the
beneficial holders of demat securities and granting of necessary approvals wherever required;
• To look into and redress shareholder’s/investors grievances.
Status of Investor Complaints:

Pursuant to Regulation 13 (3) of SEBI Listing Regulations, the status of investor complaints received and redressed
Sl.
Particulars Equity NCD’s
No.
1. Number of investor complaints pending at the beginning of the year (i.e. 01.04.2022) 00 00
2. Number of investor complaints received during the year (i.e. 01.04.2022 to 31.03.2023) 06 18
3. Number of investor complaints redressed during year (i.e. 01.04.2022 to 31.03.2023) 05 18
4. Number of investor complaints remaining unresolved at the end of the year (i.e. 31.03.2023) 01 00
Compliance Officer
Mr. Rajesh A, Company Secretary of the Company is the Compliance Officer for complying with the requirements of SEBI
Listing Regulations.
Risk Management Committee

The Board of Directors has constituted a Risk Management Committee with members of the Board. The terms of reference
of the Risk Management Committee include a periodical review of the risk management policy, risk management plan,
implementing and monitoring the risk management plan, and mitigation of the key risks.

The Risk Management Committee is constituted in line with the provisions of Regulation 21 of SEBI Listing Regulations.
The composition and attendance of the Members at the Risk Management Committee meetings held during the FY 2022-
23 are as follows:
Risk Management Committee

Designation in Meeting Dates Held during Attended
Name of Directors Nature of Directorship
the Committee 1 2 3 the FY during the FY
25.05.2022 09.11.2022 05.02.2023
Jose Mathew Chairman Independent Director P P P 3 3
Vadakkakara Antony Member Independent Director P A P 3 2
George
George Alexander Member Managing Director P P P 3 3
Muthoot
George Alexander* Member Whole-time Director NA NA P 1 1
Chamacheril Mohan Member Independent Director NA NA P 1 1
Abraham*
*Mr. George Alexander and Mr. Chamacheril Mohan Abraham were appointed as members of the committee with effect from November 10, 2022
Risk Management Department periodically places its report on risk management to the Risk Management Committee of
the Board of Directors. During the year, your Company has incorporated various practices and suggestion as directed
by the Risk Management Committee which helped the Company in attaining an improved vigilance and security system,
improved security of gold jewellery and cash, improved system of grading of branches, Regional Offices etc. The risk
owners are accountable to the Risk Management Committee for identifying, assessing, aggregating, reporting and
monitoring the risk related to their respective areas/ functions.
In line with the requirements of RBI notification, your Company has appointed a Chief Risk Officer to oversee the risk
management practices within the organization.
Asset Liability Management Committee

Your Board has created an Asset Liability Management Committee to oversee the ALM position of the Company. The
Asset Liability Management Committee is responsible for overseeing the liquidity position of the Company and liquidity
risk management.

The composition and attendance of the Members at the meetings of the Asset Liability Management Committee held
Asset Liability Management Committee Meeting Dates
Designation in Nature of Held during Attended
Name of Directors 1 2 3 4
the Committee Directorship the FY during the FY
25.05.2022 11.08.2022 09.11.2022 05.02.2023
Jose Mathew Chairman Independent P P P P 4 4
Director
Vadakkakara Antony Member Independent P P A P 4 3
George Director
George Alexander Member Managing P P P P 4 4
Muthoot Director
Abraham Chacko* Member Independent NA NA NA P 1 1
Director
*Mr. Abraham Chacko was appointed as a member of the committee with effect from November 10, 2022

Statutory
Reports
Brief Terms of reference of the Asset Liability Committee including composition are provided in the
Management Committee: Annual Report on Corporate Social Responsibility
• To ensure that the asset liability management appended to the Annual Report.
strategy and Company’s market risk management
policies are implemented. Environment, Social, and Governance Committee
• To provide a strategic framework to identify, asses, The Board instituted an Environmental, Social and
quality and manage market risk, liquidity risk, Governance Committee (“ESG Committee”), with
interest rate risk, price risk etc. effect from August 06, 2021, to discharge its oversight
responsibility on matters related to organization-wide
• To report to the Board of Directors on the adequacy
ESG initiatives, priorities, and leading ESG practices.
of the Company’s systems and controls for managing
risk, and for recommending any changes or
improvements, as necessary. Composition
• To review and assess the management of The ESG Committee consists of following members:
funding undertaken by Company and formulate Name of Member Designation
appropriate actions. Mr. George Muthoot George Chairperson
Mr. Vadakkakara Antony George Member
• To review and assess the management of the
Mr. Ravindra Pisharody Member
Company’s liquidity with the framework and policies
Mr. George Alexander Muthoot Member
established by the Board, as the case may be, and
formulate appropriate actions to be taken.
• To consider the significance of ALM of any changes Brief Terms of reference of the ESG Committee:
in customer behaviour and formulate appropriate • Overseeing Company’s policies, practices, and
actions; and performance with respect to ESG matters;
• Overseeing Company’s reporting on ESG matters;

Corporate Social & Business Responsibilit y
Committee • Recommending to the Board the Company’s overall
In line with the requirements of Section 135 of the Act, general strategy with respect to ESG matters;
your Board has constituted a Corporate Social & Business • Approving the reports on ESG;
Responsibility Committee of the Board to oversee the
CSR functions of the Company. The details of meetings • Delegating the authority to do any acts, deeds, and
of the Corporate Social & Business Responsibility matters relating to ESG;
1. General Body Meetings

i. Details of Annual General Meetings held during the previous 3 financial years and details of special businesses, if
any, transacted are as under:
Financial Year 2021-22 2020-21 2019-20

Date and Time August 31, 2022 September 18, 2021 September 30, 2020
03.30 PM 03.30 PM 10.30 AM
Place of Meeting Meeting conducted through Video Meeting conducted through Video Meeting conducted through Video
Conferencing (“VC”)/Other Audio Conferencing (“VC”)/Other Audio Conferencing (“VC”)/Other Audio
Visual Means (“OAVM”) pursuant Visual Means (“OAVM”) pursuant Visual Means (“OAVM”) pursuant
to the Ministry of Corporate to the Ministry of Corporate to the Ministry of Corporate
Affairs Circular. Affairs Circular. Affairs Circular.

ii. Special Resolutions Passed during the previous 3 Annual General Meetings:
Date of AGM Details of Special Resolution Passed
August 31, 2022 (i) Appointment of Mr. Chamacheril Mohan Abraham as an Independent Director
(ii) Re-appointment of Mr. Ravindra Pisharody as an Independent Director
(iii) Re-appointment of Mr. Vadakkakara Antony George as an Independent Director
September 18, (i) To alter Article 100 of the Articles of Association of the Company
2021 (ii) Appointment of Mr. George Muthoot George as Whole-time Director.
(iii) Appointment of Mr. George Alexander as Whole-time Director.
(iv) Appointment of Mr. George Muthoot Jacob as Whole-time Director.
(v) Approval for revision in the terms of remuneration of Mr. Alexander George, Whole Time Director.
(vi) Alteration of Clause IIIA (iii) of the Memorandum of Association of the Company
September 30, (i) Re-appointment of Mr. Alexander George as Whole Time Director of the Company for a period of 5 (five)
2020 years with effect from September 30, 2020.
(ii) Re-appointment of Mr. Jose Mathew as an Independent Director for a term of 5 years.
(iii) Re-appointment of Justice (Retd.) Jacob Benjamin Koshy as an Independent Director for a term of 3 years.
(iv) Increase in borrowing powers of the Board of Directors under Section 180 (1)(c) of the Companies Act,
2013.
(v) Consent for creation of charge, mortgage, hypothecation on the immovable and movable properties of the
Company under Section 180(1) (a) of the Companies Act, 2013.
iii. No Extraordinary General meeting was held during the Rules mandate that the shares on which dividend
the FY 2022-23. has not been claimed / encashed for seven consecutive
years or more be transferred to the IEPF. The details
iv. No ordinary nor special resolutions were proposed
of unclaimed dividend are available on the Company’s
to be conducted through postal ballot during the
website www.muthootfinance.com. During the financial
FY 2022-23.
year 2022-23, the Company had transferred 2980 equity
shares to the IEPF.
2. Remuneration to Auditors
The details of total fees paid to the Statutory Auditors In order to educate the shareholders and with an
and all entities in the network firm/ network entity of intent to protect their rights, the Company also sends
which the statutory auditor is a part, during the FY 2022- regular reminders to shareholders to claim their
23 for all the services rendered by them is given below: unclaimed dividends / shares before it is transferred
Amount to IEPF. Shareholders may note that both the unclaimed
Particulars
(K in millions) dividends and corresponding shares transferred to
Statutory audit fees (Including Limited 7.50 IEPF, including all benefits accruing on such shares, if
Review)
any, can be claimed from IEPF following the procedure
Other services 1.82
prescribed in the Rules. No claim shall lie in respect
Reimbursement of expenses -
thereof with the Company.
Total 9.32
4. General Shareholder information

3. Transfer of unclaimed/unpaid amounts to
the Investor Education and Protection Fund: a. Company Registration Details
Section 124 of the Act, read with the Investor Education The Company is registered in the state of Kerala,
and Protection Fund Authority (Accounting, Audit, India. The Corporate Identity Number allotted to
Transfer and Refund) Rules, 2016 (“the Rules”), as the Company by the Ministry of Corporate Affairs
amended, mandates that companies transfer dividend is L65910KL1997PLC011300. The Company is a
that has remained unclaimed / un-encashed for a period Systemically Important Non-Deposit Taking NBFC,
of seven years from the unpaid dividend account to the registered with Reserve Bank of India.
Investor Education and Protection Fund (IEPF). Further,

Statutory
Reports
b. 26th Annual General Meeting f. Listing Details

Date Time Venue ISIN of Equity Shares : INE414G01012
September 29, 2023 3:30 PM (IST) Through Video Status of
Conference Name and address of the Stock Listing Fee
Scrip Code
Exchange for the FY
As required under SEBI Listing Regulations, particulars 2022-23
of Directors seeking appointment/ re-appointment at BSE Limited 533398 Paid
the forthcoming Annual General Meeting are given in Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai - 400 001
the Annexure to the Notice of the 26th AGM to be held on
National Stock Exchange of MUTHOOTFIN Paid
September 29, 2023. India Limited
Exchange Plaza, Plot No. C-1,
Block G, Bandra Kurla Complex,
c. Financial Year : April 01, 2022 to March 31, Bandra (E), Mumbai - 400 051
2023
NCD’s issued by the Company through Public Issue
d. Date of Book Closure : A s mentioned in the Notice
are listed in BSE Limited and National Stock Exchange
of AGM
of India Limited and Senior Secured Notes issued by
e. Dividend Pay-out Date :
Interim dividend for the the Company are listed in the International Securities
FY 2022-23 was declared on Market of the London Stock Exchange.
April 06, 2023 and paid on
May 03, 2023. g. Annual Custody Fee to Depositories
Annual Custody/Issuer Fees for the FY 2022-23 have
been paid to CDSL and NSDL.
h. Stock market price data (in K Per share)

The high and low market price data and the volume of shares traded during each month of the FY 2022-23:
National Stock Exchange of India Limited (NSE) BSE Limited (BSE)

Month No. of shares No. of shares
High Price Low Price High Price Low Price
traded traded
April 2022 1384 1247 5,27,618 1384.00 1247.50 4,77,725
May 2022 1291.95 1026.7 7,57,985 1291.40 1029.00 7,28,118
June 2022 1151 960.4 6,59,955 1151.00 961.05 5,65,324
July 2022 1091.6 977.1 6,75,532 1091.65 976.55 6,60,510
August 2022 1213.95 1009.3 9,96,864 1212.75 1002.25 13,89,643
September 2022 1067.1 950.2 7,95,004 1067.00 950.05 9,56,177
October 2022 1074.4 1007.45 4,42,274 1074.00 1008.00 11,06,581
November 2022 1141 1036.55 6,38,089 1140.65 1040.85 7,87,322
December 2022 1158.75 1023.35 5,28,813 1158.75 1033.05 3,91,386
January 2023 1102.65 1001 4,23,811 1101.25 1001.00 2,67,380
February 2023 1057.95 947.4 5,03,621 1057.40 948.00 3,74,378
March 2023 989.35 911.25 5,02,582 989.00 911.40 3,56,882

i. Performance of the share price in comparison (based on closing prices) to broad-based indices
during the FY 2022-23
Muthoot Finance vs Sensex
64000 1300
62000 1250
1200
Muthoot Finance
60000
1150
BSE
58000
1100
56000
1050
54000 1000
52000 950
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Muthoot Finance BSE
Muthoot Finance vs Nifty
19000 1300
18500 1250
18000 1200
Muthoot Finance
17500 1150
NSE
17000 1100
16500 1050
16000 1000
15500 950
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Muthoot Finance NSE
j. Registrar and Share Transfer Agents shareholders are not allowed to transfer any shares in
Link Intime India Private Limited the physical form and hence, the dematerialisation of
Surya, 35, Mayflower Avenue the shares is mandatory for transfer of shares. Thus,
Behind Senthil Nagar, the Company encourages the holding of shares in
Sowripalayam Road, dematerialized form. The shares held in dematerialized
Coimbatore - 641 028 form can be transferred through the depositories
Tel: + 91 422 - 2314792, 2315792 without the Company’s involvement.
Fax: + 91 422 - 2314792
Email: [email protected] Pursuant to Regulation 40 (9) of the SEBI Listing
Contact Person: S Dhanalakshmi Regulations, the Company obtains a certificate from a
Company Secretary in Practice on a yearly basis to the
effect that all the transfers are completed within the
k. Share transfer system statutory stipulated period. A copy of the said certificate
The shareholders are free to hold the Company’s has been submitted to both the Stock Exchanges, where
shares either in physical form or in dematerialized the shares of the Company are listed.
form. However, with effect from April 01, 2019, the

Statutory
Reports
l. Category-wise summary of Shareholding as on o. Dematerialization of shares

March 31, 2023 The Company has arrangements with both National
Securities Depositories Limited and Central Depository
Category No. of Shares % of Holding
Services (India) Limited to establish electronic
Promoter and Promoter Group 29,44,63,872 73.35
connectivity of our shares for scrip-less trading. The
Mutual Fund 4,53,32,506 11.29
shareholders can hold the Company’s shares with any
Alternate Investment Funds 11,96,456 0.30
of the depository participants, registered with these
Foreign Portfolio Investor 3,76,05,362 09.37
depositories. The ISIN for the shares of the Company
Financial Institutions / Banks 272 0.00 is INE414G01012.
Provident Funds/ Pension Funds 18,44,947 0.46
Insurance Companies 24,45,676 0.61 As on March 31, 2023, 99.99% of shares of the Company
Others including Public 1,85,59,140 4.62 were held in dematerialized form.
Total 40,14,48,231 100.00
m. Distribution of Shareholding as on March 31, p. Shares in Suspense Account

2023 No equity shares of the Company are held in demat-
Category No. of % of No. of % of suspense account/unclaimed suspense account as on
(Shares) Holders Holders Shares Shares March 31, 2023.
1 – 500 275292 98.6752 93,28,262 2.32
501 - 1000 1,815 0.6506 13,00,957 0.32
q. Outstanding Global Depository Receipts (GDRs)
1001 - 2000 903 0.3237 12,82,710 0.32
or American Depository Receipts (ADRs) or
2001 - 3000 216 0.0774 5,30,356 0.13
Warrants or any Convertible instruments,
3001 - 4000 98 0.0351 3,47,166 0.09
conversion date and likely impact on equity:
4001 - 5000 61 0.0219 2,77,875 0.07
The Company does not have any outstanding GDRs/
5001 - 10000 188 0.0674 13,59,706 0.34
ADRs/ Warrants or any Convertible instruments as
10001 and 415 0.1488 38,70,21,199 96.41
above on date.
Total 2,78,988* 100.00 40,14,48,231 100.00
*A s on the end of March 31, 2023, the number of shareholders based r. Branch locations:
on demat accounts are 2,78,988 and based on PAN are 2,72,148.
Company has 4,739 branches as on March 31, 2023.
There is a difference in the number of shareholders based on
demat and PAN since shareholders can have multiple demat The details of locations are available on the Company’s
accounts under a single PAN. website at: https://www.muthootfinance.com/branch-
locator
n. Top ten Equity Shareholders of the Company as
on March 31, 2023
s. Commodity price risk or foreign exchange risk
Sl.
Name of the Shareholders
Number of Percentage and hedging activities:
No. Shares (%)
1. George Jacob Muthoot 4,36,30,900 10.87 The Company had no exposure to commodity and
2. George Thomas Muthoot 4,36,30,900 10.87 commodity risk during the FY 2022-23. Currency risk
3. Susan Thomas 2,99,85,068 7.47
is the risk that the value of a financial instrument will
4. Sara George 2,90,36,548 7.23
fluctuate due to changes in foreign exchange rates.
Foreign currency risk for the Company arises majorly on
5. SBI Mutual Fund 2,66,83,492 6.65
account of foreign currency borrowings and investments
6. George Alexander Muthoot 2,36,30,900 5.89
in foreign subsidiary companies. The Company’s foreign
7. Alexander George 2,22,89,710 5.55
currency exposures are managed in accordance with its
8. George Muthoot George 2,22,89,710 5.55
Foreign Exchange Risk Management Policy which has
9. Eapen Alexander 1,75,25,000 4.37
been approved by its Board of Directors. The Company
10. George Alexander 1,75,25,000 4.37
has hedged its foreign currency risk on its foreign
*Top ten equity shareholders calculated based on PAN based currency borrowings as on March 31, 2023 by entering
shareholders data as on March 31, 2023.
into cross currency swaps and forward contracts with
the intention of covering the entire term of foreign
currency exposure.

The Company’s exposure on account of Foreign Currency u. Credit Rating

Borrowings are provided in the Notes forming part of The list of all credit ratings for all debt instruments and
the financial statements. other instruments enjoyed by the Company as on March
31, 2023 are as under.
t. Address for Correspondence Credit Rating Rating as on
Instrument
Muthoot Finance Limited Agency March 31, 2023
2nd Floor, Muthoot Chambers CRISIL Commercial Paper CRISIL A1+

Opposite Saritha Theatre Complex Subordinated Debts CRISIL AA+/Stable
Banerji Road, Ernakulam - 682 018 Non-Convertible CRISIL AA+/Stable
Debentures
Kerala, India
ICRA Commercial Paper [ICRA] A1+
Tel: (+91 484) 2396478, 239 4712
Fax: (+91 484) 239 6506, 2397399 Short Term Bank [ICRA] A1+
Borrowings
Website: www.muthootfinance.com
Long Term Bank [ICRA]AA+(Stable)
Email: [email protected] Borrowings
Subordinated Debts [ICRA]AA+(Stable)
Non-Convertible [ICRA]AA+(Stable)
Debentures
International
Ratings
(i) Fitch Ratings External BB(Stable)
(ii) S&P Global Commercial BB(Negative)
Borrowings
(iii) Moody’s Ba2/(Stable)
Investors
Service
5. Other Disclosures
Website link for details/
Particulars Statutes Details
policy
Monitoring Regulation 24 of The audit committee reviews the consolidated financial statements www.muthootfinance.
of Subsidiary the SEBI Listing of the Company and the investments made by its unlisted subsidiary com/policy/policy-
Companies Regulations companies. The minutes of the Board meetings along with a report investor
on significant developments of the unlisted subsidiary companies are
periodically placed before the Board of Directors of the Company. The
Company does not have any material unlisted subsidiary company as
at March 31, 2023. The Company has a policy for determining ‘material
subsidiaries’ which is disclosed on its website. The Company does not
have any Material Subsidiaries as at March 31, 2023.
Presentation on the financial and operational performance of each of
the subsidiary companies are regularly made to the Board of Directors
of the Company.
Related Party Regulation 23 of In the opinion of the Board of Directors, there are no materially https://www.
Transaction SEBI Listing significant related party transactions during the year under review muthootfinance.com/
Regulations and made by the Company with Promoters, Directors, Key Managerial policy-investor
as defined Personnel or their relatives or other designated persons which may
under the Act have a potential conflict with the interest of the Company at large.
Further, there were no material related party transactions which
required approval of shareholders under SEBI Listing Regulations. The
details of the related party transactions are disclosed in the notes on
accounts, forming part of Financial Statements.
The Company had obtained approval of the Audit Committee for all
related party transactions. Further, all related party transactions
entered into by the Company were on arm’s length basis and are in the
ordinary course of its business. Omnibus approval was obtained for the
transactions of repetitive nature.

Statutory
Reports

policy
Proceeds of the Moneys raised through Public Issue of Equity Shares as well as Public
Public issue Issues of Secured Non-Convertible Debentures have been utilized for
the purposes, as disclosed in the Prospectus/ Offer Documents, for
which it was raised and there has been no deviation as on date in the
utilisation of the moneys so raised. Details of debentures issued through
public issues are disclosed in the financial statements of the Company.
Shares in demat Regulation 34(3) As at March 31, 2023, no equity shares of the Company are held in demat
suspense and Part F of suspense account.
account Schedule V to
the SEBI Listing
Regulations
Details of non- Schedule V (C) There were no instances of non-compliance by the Company, penalties,
compliance by 10(b) to the strictures imposed on the Company by Stock Exchanges or SEBI or
the Company, SEBI Listing any other statutory authority on any matter related to Capital Market
penalty, Regulations during the last three financial years. Company has been regular in filing
strictures necessary returns with regulators and all necessary information with
imposed on the the Stock Exchanges where the shares and securities are listed.
Company by the
stock exchange,
or Securities
and Exchange
Board of India
or any statutory
authority on
any matter
related to
capital markets
during the last
three financial
years.
Terms of Regulation 46 Terms and conditions of appointment/re-appointment of Independent https://www.
Appointment of of SEBI Listing Directors are available on the Company’s website. muthootfinance.
Independent Regulations and com/themes/bartik/
Directors Section 149 read uploads/ID_Terms_of_
with Schedule IV Appointment.pdf
to the Act
Whistle Blower Regulation 22 of The Company has formulated a comprehensive Whistle Blower Policy in https://www.
Policy & Vigil SEBI Listing line with the provisions of Section 177 (9) & 177 (10) of the Companies muthootfinance.com/
Mechanism Regulations Act, 2013 and Regulation 4 (2) (d) (iv) & 34 (3) read with Para 10 of policy-investor
Part C of Schedule V of the SEBI Listing Regulations with a view to
enabling stakeholders, including directors, individual employees and
their representative bodies to freely communicate their concerns about
illegal or unethical practices and to report genuine concerns to the
Audit Committee of the Company. It outlines the method and process
for various stakeholders to voice genuine concerns about unethical
conduct that may be in breach with the employees’ Code of Conduct.
Board of Directors affirms that no personnel were denied access to the
audit committee.
Code of Conduct Regulation 17 The Company has put in place a Code of Conduct for Directors and https://www.
(5) of the Senior Management. This code for Directors and Senior Management muthootfinance.com/
SEBI Listing is intended to focus the Board and Senior Management on areas of policy-investor
Regulations ethical risk, provide guidance to Directors and Senior Management to
help them recognize and deal with ethical issues, provide mechanisms
to report unethical conduct and to help foster a culture of honesty and
accountability.
Pursuant to the Regulation 26 (3) of SEBI Listing Regulations, all the
members of the Board and Senior Management Personnel affirmed
compliance with this code and a declaration by the Managing Director
confirming the adherence to this code is annexed as Annexure A to this
report.


policy
CEO/CFO Regulation The certificate, duly signed by the Managing Director and Chief Financial
Certification 17 (8) of the Officer for the financial year ended March 31, 2023 was reviewed by the
SEBI Listing Board of Directors. The same is annexed as Annexure B to this report.
Regulations
Compliance The Company has complied, in all material respects, with the conditions
Certificate of corporate governance, as stipulated in the SEBI Listing Regulations
on Corporate during the year ended March 31, 2023.
Governance The compliance certificate on Corporate Governance received from the
Joint Statutory Auditors of the Company confirming the compliance
with the conditions of Corporate Governance as stipulated under SEBI
Listing Regulations is annexed as Annexure C to this report.
Disclosure Section 134 of The Company has in place a Policy on Prevention, Prohibition and
under Sexual the Companies Redressal of Sexual Harassment of Women at Workplace and an
Harassment Act, 2013 read Internal Complaints Committee in line with the requirements of the
of Women at with Rule 8 Sexual Harassment of Women at Workplace (Prevention, Prohibition
Workplace of the Companies and Redressal) Act, 2013 and Rules made thereunder for reporting
(Prevention, (Accounts) and conducting inquiry into the complaints made by the victim on
Prohibition and Rules, 2014 the harassments at the work place. The functioning of the Committee
Redressal) Act, was carried out as per letter and spirit contained in the provisions of
2013 the Act.
The Internal Complaints Committee looks into the complaints of
aggrieved women employees, if any, and is instrumental in:
• romoting gender equality and justice and the universally
P
recognized human right to work with dignity; and
• Prevention of sexual harassment of women at the workplace.
Details/status of complaints filed in the FY 2022-23 are shown in the
Board’s Report of the Company.
Disclosure of Para G of The company has not entered into any agreements falling under the
certain type Schedule V of provisions of clause 5A of paragraph A of Part A of Schedule III of SEBI
of agreements SEBI Listing (Listing Obligations and Disclosure Requirements) Regulations.
binding listed Regulations read
entities with clause 5A
of para A of Part
A of Schedule III
of SEBI Listing
Regulations
General Board of Directors of your Company periodically discuss, review and
Disclosures decides upon matters related to policy formulations, appraisal of
performances, overall supervision and control of your Company, review
to Compliance Reports pertaining to compliance of all laws prepared
by the management etc. Board of Directors of your Company have also
delegated various powers to Committees which monitors day to day
activities of your Company. Notice and Agendas setting out the business
to be transacted are being sent to Directors in advance by complying
necessary regulations in this regard. In some instances, documents
which are primarily price sensitive information are tabled at meetings
and presentations are also made by Senior Executives on matters
related to them in the Board as well as Committee meetings. Your
Company also have suitable policies on Code of Conduct for Directors
and Senior Management, Code of conduct of Independent Directors,
plans for succession of Board of Directors. Your Company has complied
with Corporate Governance requirements specified in Regulation 17 to
27 and clauses (b) to (i) of sub regulation (2) of Regulation 46 of SEBI
Listing Regulations.

Statutory
Reports
6. Means of communication
The quarterly, half yearly and annual results were published in leading national dailies and regional dailies. The Company
is also maintaining a functional website https://www.muthootfinance.com/ wherein all the communications are
updated including the quarterly financial results of the Company. Presentations made to the institutional investors and
analysts after declaration of the quarterly results are also displayed on the web site of the Company. The Annual reports
containing the Audited Annual Accounts, Auditors’ Reports, Boards’ Report, the Management Discussion and Analysis
Report forming part of Boards’ Report and other material information are circulated to the members and others entitled
thereto. Annual Reports of the Company are emailed to all shareholders who have provided their email IDs in the records
of the Depository. All the disclosures and communications to be filed with the Stock Exchanges were submitted through
e-filing platform/email and there were no instances of non-compliances.
7. Adoption of Mandatory and Non-Mandatory requirements of Part E of Schedule II of SEBI Listing

Regulations:
Your Company has complied with all the mandatory requirements as stipulated in SEBI Listing Regulations and fulfilled
the following non - mandatory requirements:
• The Report of the Statutory Auditors on the financial statement of the Company for the FY 2022-23 doesn’t contain any
qualification or reservation.
• The position of Chairman and Managing Director are held by different individuals; and
• Internal Auditor of the Company directly reports to the Audit Committee of the Board.
Sd/- Sd/-
DIN: 00018235 DIN: 00016787
Place: Kochi,

ANNEXURE A
DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT
PERSONNEL WITH THE COMPANY’S CODE OF CONDUCT
To,
The Members of Muthoot Finance Limited
I hereby confirm that the Company has obtained from all the members of the Board and designated senior management
employees of the Company, affirmation that they have complied with “Code of Conduct for Board Members and Senior
Management” (“Code”) of the Company for the financial year ended March 31, 2023.
Sd/-
Place: Kochi Managing Director
Date: August 11, 2023 DIN: 00016787

Statutory
Reports
ANNEXURE B
CEO / CFO CERTIFICATION
The Board of Directors

Kochi - 18
We, George Alexander Muthoot, Managing Director, and Oommen K Mammen, Chief Financial Officer of Muthoot Finance
Limited to the best of our knowledge and belief, certify that:
A. We have reviewed financial statements and the cash flow statement for the year ended on March 31, 2023 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 listed entity 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 we are aware and the steps we 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 we 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.
Sd/- Sd/-
George Alexander Muthoot Oommen K Mammen
Managing Director Chief Financial Officer
Place: Kochi
Date: May 19, 2023

ANNEXURE C
INDEPENDENT AUDITORS’ CERTIFICATE
ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE
AS PER THE PROVISIONS OF CHAPTER IV OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 (AS AMENDED)
To,
The Members
1. This certificate is issued in accordance with the terms of our engagement letter dated January 12, 2023.
2. We have examined the compliance of conditions of Corporate Governance by Muthoot Finance Limited (“the Company”)
for the year ended March 31, 2023, as stipulated in Regulations 17 to 27 and clauses (b) to (i) & (t) of Regulation 46(2) and
Para C, D and E of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended, to the extent applicable (“Listing Regulations”).
Management’s Responsibility
3. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility
includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with
the conditions of the Corporate Governance stipulated in Listing Regulations.
Auditors’ Responsibility
4. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for
ensuring the compliance with the conditions of Corporate Governance during the year ended March 31, 2023. It is neither
an audit nor an expression of opinion on the financial statements of the Company.
5. We have examined the books of account and other relevant records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance of conditions of Corporate Governance by the Company.
6. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on
Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India (“ICAI”), the Standards
on Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this
certificate and as per the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires
that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related
Services Engagements.

Statutory
Reports
Opinion
8. Based on the procedures performed by us and to the best of our information and according to the explanations provided
to us, in our opinion, the Company has complied, in all material respects, with the conditions of corporate governance, as
stipulated in the Listing Regulations during the year ended March 31, 2023.
9. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the Management has conducted the affairs of the Company.
Restriction on Use
10. This Certificate is issued solely for the purpose of complying with the aforesaid regulations and may not be suitable for
any other purpose. Accordingly, we do not accept or assure any liability or any duty of care for any other purpose or to any
other person to whom this certificate is shown or into whose hands it may come, without our prior consent in writing.
For Elias George & Co. For Babu A. Kallivayalil & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No.: 000801S Firm Regn. No.: 005374S
Ranjit Mathews P Babu Abraham Kallivayalil
Partner Partner
Membership No.: 205377 Membership No.: 026973
UDIN:23205377BGQGIX4462 UDIN: 23026973BGUIAL9585
Place: Kochi Place: Kochi

Date: August 09, 2023 Date: August 09, 2023

ANNEXURE D
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(pursuant to Regulation 34(3) and Schedule V Para Clause (10) (i)of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015)
To,
The Members
Muthoot Chambers, Opp. Saritha Theatre Complex,
Banerji Road, Ernakulam,
Kerala-682018.
I have examined the relevant registers, records, forms returns and disclosures received from the Directors of Muthoot
Finance Limited having CIN L65910KL1997PLC011300 and having registered office at Muthoot Chambers, Opp. Saritha
Theatre Complex, Banerji Road, Ernakulam,Kerala-682018 (herein after referred to as “the Company”), produced before me
by the Company for the purpose of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V Para-C
Sub clause10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company and its
officers. We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial year ending
on 31 March, 2023 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the
Securities Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr.
Name of the Director* Designation DIN Nationality Date of Appointment **
No.#
1 George Jacob Muthoot Chairman & Whole Time Director 00018235 Indian 16-08-2005
2 George Alexander Muthoot Managing Director 00016787 Indian 20-11-2006
3 George Thomas Muthoot Whole Time Director 00018281 Indian 16-08-2005
4 Alexander George Whole Time Director 00938073 Indian 05-11-2014
5 George Muthoot George Whole Time Director 00018329 Indian 15-12-2021
6 George Muthoot Jacob Whole Time Director 00018955 Indian 15-12-2021
7 George Alexander (Jr) Whole Time Director 00018384 Indian 15-12-2021
8 Jacob Benjamin Koshy Independent Director 07901232 Indian 20-09-2017
9 Jose Mathew Independent Director 00023232 Indian 20-09-2017
10 Ravindra Pisharody Independent Director 01875848 Indian 28-09-2019
11 Vadakkakara Antony George Independent Director 01493737 Indian 28-09-2019
12 Chamacheril Mohan Abraham Independent Director 00628107 Indian 31-08-2022
13 Usha Sunny Independent Director 07215012 Indian 30-11-2020
14 Abraham Chacko Independent Director 06676990 Singapore 18-09-2021
*List of Directors as on 31st March 2023;
**the date of appointment is as per the MCA portal
Ensure the eligibility of 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 Sunil Sankar & Associates
Sunil Sankar Puthalath

Company Secretary in Practice
Place: Ernakulam, ACS No: 20171 CP No: 10613
Date: June 07, 2023 UDIN:: A020171E000468487

Statutory
Reports
ANNEXURE- 7
Management Discussion and Analysis
Global Economic Landscape World Economic Outlook July 2021
Recent resolutions of the US debt ceiling standoff and actions Growth Projections
(Real GDP growth, percent)
to stabilize the US and Swiss banking sectors have reduced
immediate risks of financial turmoil. Nevertheless, risks to Global Economy Advanced Economies Emerging Market &
global growth persist, with potential factors such as further Developing Economies
inflation shocks, geopolitical conflicts, extreme weather 4.1

4.0 4.0
events, and financial sector turbulence. China’s recovery
3.5
could also be impacted by unresolved real estate problems, 3.0
3.0
leading to negative cross-border effects. 2.7
The 2023 forecast is slightly higher than previously predicted,

but still weak by historical standards. Central banks’ efforts 1.5 1.4
to combat inflation through higher policy rates are impacting
economic activity. Inflation rates are a concern, with global
headline inflation expected to decrease from 8.7 percent in
2022 to 6.8 percent in 2023 and 5.2 percent in 2024. However, 2022 2023 2024 2022 2023 2024 2022 2023 2024
underlying inflation is projected to decline more gradually, International Monetary Fund
and there are upward revisions to inflation forecasts for 2024.
Indian Economic Landscape
Source: World Economic Outlook 2023, IMF https://www.
Amidst challenges posed by inflation and supply disruptions,
imf.org/en/Publications/WEO/Issues/2023/07/10/world-
the Indian economy remains steadfast, showing resilience and
economic-outlook-update-july-2023
a projected growth rate of 7% in FY 2023-24. The government’s
proactive measures, including infrastructure investments,
Outlook promoting private investment, and pursuing self-sufficiency,
The global economy is facing challenges with projected have positioned the economy for sustained progress.
growth expected to decline from an estimated 3.5 percent
in 2022 to 3.0 percent in both 2023 and 2024. The global The continued recovery in the manufacturing and services
economic outlook remains uncertain and presents a mix of sectors, supported by high PMI numbers, reflects improved
challenges and potential opportunities. Inflation remains a consumer and business confidence, indicating a potential
major concern, and central banks should prioritize restoring rebound in economic activity and investment. Robust GST and
price stability while strengthening financial supervision direct tax collections have provided significant resources to
and risk monitoring. Additional shocks could further impact support the economy, empowering the government to deploy
inflation, prompting more restrictive monetary policies. targeted stimulus measures and invest in critical sectors to
drive growth.
Source: https://www.imf.org/en/Publications/WEO/
Issues/2023/07/10/world-economic-outlook-update-july-2023 Affluent consumers continue to play a pivotal role in
propelling demand, as seen in the strong growth of the retail
industry and the exceptional performance of companies
in consumer staples and discretionary sectors. Moreover,
several sectors have displayed promising signs of job creation
and increased labor force participation, fostered inclusive
economic development and stimulated demand.

India Forecasts: GDP, Inflation and 2023 also emphasizes onboarding small businesses to
Unemployment Rate digital financial services, which will contribute further
to driving financial inclusion in the country.
7.5
7.0 6.9
6.4 6.5 2. Fintech - India is experiencing significant growth in the
6.0
5.3 5.4 fintech sector, with an adoption rate of 87%, making it
4.4 one of the fastest-growing fintech markets worldwide.
This growth is fuelled by substantial investments,
technological innovation, increasing internet
penetration, and the widespread adoption of the Unified
Payments Interface (UPI). The Reserve Bank of India
(RBI) also acknowledges the potential of Central Bank
Digital Currencies (CBDCs) to open up opportunities
GDP Inflation Unemployment Rate
for fintech companies to create accessible solutions for
FY23 FY24 FY25
individuals without internet access.
Source: Ministry of Statistics and Programme Implementation, CMIE,
KPMG Forecasts. 3. Digitalisation - The banking, fintech, and payment
systems are experiencing a digital revolution that is
Outlook generating increased credit demand for banks and
India’s economy has showcased exceptional resilience amid NBFCs. Furthermore, advanced technologies like
global challenges and is on track to surpass all other major artificial intelligence and machine learning are now
economies with its impressive growth rate, cementing its driving new business models in this sector, empowering
position as the world’s fastest-growing major economy. entities to process vast amounts of data and analyse
The Ministry of Statistics and Programme Implementation real-time trends.
forecasts a 7% rise in GDP for the fiscal year 2023-24,
reinforcing India’s remarkable growth trajectory. 4. Penetration of Financial Products - The increasing
adoption of financial products is bolstered by India’s
Source: Ministry of Statistics and Programme Implementation. significant smartphone and internet user base, ranking
second globally in both aspects. As the number of mobile
Industry Review and internet users continues to rise, these products
become more accessible and convenient for customers,
Financial Services Industry driving growth in the financial services industry.
The financial services industry in India is experiencing rapid
growth and transformation as it diversifies with the entry 5. Financial Services demand soars with rising incomes
of new companies offering unique services. This expansion in India - Increasing incomes in India are fueling the
is fuelled by increasing income levels, advancements in demand for financial services across various income
technology, and government-initiated reforms. brackets, encompassing insurance and retail banking
services. According to the recent Henley Global Citizens
Report, the forecast indicates that the number of dollar
Growth drivers millionaires and billionaires in India is expected to surge
1. F
inancial Inclusion - India has made significant strides by 80% over the next decade, in stark contrast to growth
in financial inclusion, as evident from the rise in the rates of 20% in the US and 10% in France, Germany, Italy,
financial inclusion index from 53.9 in March 2021 to and the UK.
56.4 in March 2022. To further promote financial
inclusion, the Reserve Bank of India (RBI) launched
NBFC Sector Overview
the “Antardrishti” financial inclusion dashboard in
June 2023. This platform aims to provide valuable The Non-Banking Financial Companies (NBFC) industry
insights to evaluate and track the progress of financial is witnessing steady growth, with the overall loan book
inclusion. Efforts are being made to expand the reach of consisting of retail and other wholesale loans (including
financial literacy centres to every block in the country infrastructure loans) projected to increase by approximately
by March 2024. Additionally, 25,000 post offices are set 13% and reach H 50 Trillion by March 2024. The Reserve Bank
to be equipped with core financial services solutions of India (RBI) has acknowledged NBFCs’ efforts in reaching
to enhance account interoperability. The Union Budget out to individuals who were previously underserved by the

Statutory
Reports
financial sector. To achieve the projected growth, NBFCs are to 9.9% at the end. Banks’ credit exposure to NBFCs crossed
expected to focus on new business areas such as unsecured four significant thresholds in the year, reaching H10 Lakh Crore
loans and the Small and Medium-sized Enterprises (SME) in January 2022, H11 Lakh Crore in June 2022, and H12 Lakh
segment, which offer higher growth prospects compared to Crore in October 2022. This growth was fuelled by the NBFC
traditional products. This growth would require additional asset book’s expansion and increased borrowings from banks
funding of around H2.9 to H3.3 Trillion in FY24. due to differentials between market yields and interest rates
offered by banks, along with reduced overseas borrowings.
The NBFC-Retail sector’s Assets Under Management are
projected to grow at a rate of 12-14% in FY24, reaching H14.7
Diversification across the NBFC Sector
Trillion by March 2024. NBFCs are leveraging technology
to enable faster paperless disbursals and expanding their Resource Diversification
reach to a wider audience. They are also concentrating on
• In FY23, NBFCs reduced their heavy dependence on bank
improving asset quality and profitability. Collaboration
borrowings by diversifying funding sources.
through technology is becoming common among NBFCs
to offer a diverse range of products, benefiting smaller and • NCD issuances by NBFCs nearly doubled from FY20 levels,
mid‑sized NBFCs to grow alongside established ones. indicating increased reliance on this financing avenue.
• Retail-focused NBFCs and Infrastructure financiers

Asset quality has shown improvement compared to the
witnessed significant growth in NCD issuances during
pre-pandemic period, as many NBFCs wrote off bad loans.
this period.
Although new write-offs will be moderate compared to
historical levels, the overall industry’s Provision Coverage • The demand for funds led to a substantial rise in
Ratio has been steadily improving over the last two years. Net securitization volumes, reaching I 1.8 trillion in FY23 to
Interest Margins for the Retail NBFC sector are expected to meet funding requirements.
remain around 7.5%-7.6% in FY24, similar to the estimates
for FY23 and actual figures for FY22. However, there might be Product Portfolio Diversification
a rise in Operating Expenses in FY24 due to recovery efforts • Several NBFCs and HFCs are expanding their
and scale expansion. product portfolio and introducing new offerings to
stimulate growth.
Share of Gross Non-Performing Assets is expected to decline
to 3.4% by March 2024, supported by improved asset quality. • NBFCs are particularly targeting underpenetrated
Credit costs are estimated to decrease to 1.5% in FY24 from segments such as affordable housing, small business loans,
1.7% in FY23 and 2.2% in FY22. Consequently, NBFCs are and used vehicles to tap into new market opportunities.
anticipated to maintain their profitability at 2.4%-2.6% in
FY24, consistent with FY23 and FY22. Diversified Service Models
• Platform Model: Collaborating with fintech companies,
NBFCs have managed to maintain adequate capitalization, NBFCs offer loan products on fintech platforms, enriching
and internal profit generation will be crucial for maintaining the platforms’ lending capabilities by leveraging
healthy capital in the future. While growth is essential for the their expertise in risk assessment, credit scoring,
sector, preserving sufficient capital alongside this growth and compliance.
will be a critical consideration.
• Enabler Model: Fintech companies offer technology
solutions to NBFCs, enabling improved operational
During the year 2022, banks’ outstanding credit to
efficiency, productivity, cost reduction, and streamlined
NBFCs increased by 35.5% year-on-year, surpassing the
processes to enhance customer services.
H13 Lakh Crore mark to reach H13.2 Lakh Crore. The
percentage of NBFC funding as a portion of total bank lending
rose significantly during the year, from 8.5% at the beginning

Key Regulatory Measures Chart 1: The changing structure of the gold

market since 1992*
1. Framework for Facilitating Small Value Digital
Payments in Offline Mode - A proposed framework
(Share %)
aims to facilitate small value digital payments in
100
offline mode by introducing a payment channel
that operates independently without reliance on 80
internet or telecom connectivity. 60
40
2. R
egulatory Framework for Microfinance Loans -
20
In the regulatory framework for microfinance loans,
all collateral-free loans granted to households 0
with an annual income up to H3,00,000 will be -20
categorized as microfinance loans.
-40
1992 1996 2000 2004 2008 2012 2016 2020
3. M
inimum Net Owned Fund Requirement - The
minimum Net Owned Fund (NOF) requirement Jewellery fabrication Technology
has been raised to H300 crore, an increase from Total bars and coins ETFS and similar products
the previous threshold of H100 crore, and will be Central banks and other institutions
applicable on an ongoing basis. *Data as at 31 December 2022.
4. R
BI goals for supervision of NBFCs in 2023-24 - Geographically, Asia’s demand has risen significantly,
RBI aims to review licensing requirements and accounting for nearly 60% of the world total, driven by
conduct impact assessments on recent changes in economic growth in India and China. Supply dynamics have
asset classification norms for NBFCs. also evolved, with annual gold mine production increasing
and becoming more evenly dispersed across regions. This
Source: BCG, https://web-assets.bcg.com/b4/26/ geographic dispersion provides stability to primary supply
e5c0876045d1ac0e51920b77deb4/nbfc-sector-update-fy23-vf.pdf and reduces the risk of supply shocks, complemented by the
abundant above-ground gold stock.
Gold Market
Chart 2: Global gold production has become more
Over the past three decades, the gold market has undergone
geographically diverse in the last 30 years*
significant changes, becoming more diverse in terms of
demand and supply. In the early 1990s, consumer-driven (% of global prod)
demand, particularly for jewelry and technology, dominated 100
the market. However, in recent years, investment and central
90
bank demand have become significant players alongside net
80
fabrication. This shift has provided gold with a unique dual
70
nature, serving as both a consumer good and an investment
asset, making it an effective diversifier. 60
50
40
30
20
10
0
1992 1996 2000 2004 2008 2012 2016 2020
Europe North America South America

Asia Africa Oceania
*Data as of 31 December 2021.
Source: Metals Focus, Refinitiv GFMS World Gold Council

Statutory
Reports
Indian Gold Market in jewellery demand to 146 tonnes, driven by increased

Gold holds a significant position in Indian society as a purchases even though gold prices fell less than international
foundation of wealth and savings. However, evolving markets due to the depreciation of the rupee against the dollar.
consumer preferences and globalization necessitate a
comprehensive reassessment of the associated issues. Notably, the growing demand for gold in India heavily relies
on imports, making it a major contributor to India’s trade
India stands as one of the largest gold markets globally, deficit and current account deficit.
with increasing affluence driving the demand for gold. In
Q2 of FY23, global gold demand rose by 4% year-on-year Demand Drivers
(y-o-y) to 453 tonnes, driven by a remarkable 49% surge
1. Economic growth remains a key driver of gold demand.
in India’s demand compared to Q2 FY22. The Indian gold
2. Urbanization will reshape consumer demand patterns.
industry contributes 1.3% to the national GDP and is mainly
3. India’s young population shows a strong affinity for gold.
composed of small and medium enterprises. The domestic
4. The gold industry in India is witnessing
market is predominantly driven by cultural, wedding, and
increased organization.
festive demand.
5. Central banks’ interest rate hikes may dampen gold
prices due to inflation control measures, but safe-
Annual Demand for Gold in India (in metric tonne)
haven demand amid global growth concerns might
1200 offer some support. From a historical and comparative
1001.71 974.02 958.58 standpoint, holding substantial gold reserves during
1000 857.24 times of heightened uncertainty makes a compelling
914.15 797.3
771.22 economic case.
800 833.09
760.4 690.4 6. The Russia-Ukraine conflict is likely to raise inflation,
600 666.09 increasing both safe-haven appeal and the inflation
hedge premium for gold, thus providing support to
400 gold prices.
446.4
7. Gold holds significant importance as an asset class in
200
rural India, representing 60% of the country’s total
0.00
annual gold consumption. However, rural demand
2008 2010 2012 2014 2016 2018 2020 2022 for gold could be affected by inflationary pressures
and an unpredictable monsoon leading to reduced
Source: Statista
farmers’ income.
While India experienced strong gold demand, China faced

a significant decline of 28% due to COVID-19 lockdowns Gold Prices
impacting economic activity and consumer spending. After During the first half of fiscal year 2022, domestic gold prices
successive declines over four years, India’s gold demand is in India saw a significant increase, rising by nearly H3,000
now on the path to recovery, reaching pre-pandemic levels. from around H48,243 in January 2022 to H51,243 in June 2022.
In the September 2022 quarter, the fall in gold prices led to The gold price remained volatile, reaching a 9-month high in
a 14% increase in demand to 192 tonnes compared to the the first week of December 2022 before stabilizing.
corresponding period last year. In 2021, gold demand reached
797.3 metric tonnes, a growth of 78.6% compared to the Gold futures contracts for February 2023 on the Multi
previous year, marking the first increase after four years of Commodity Exchange (MCX) closed at H54,325 per 10 gm on
continual annual decline. In 2022, the overall demand for December 16, 2022, showing a minor weekly gain of H30 per
gold increased by 19% in terms of value to US$10.6 billion 10 gm, while spot gold prices settled around $1,792 per ounce,
from US$9.7 billion reported the previous year. The World about $5 per ounce lower than the previous Friday’s close.
Gold Council’s Demand Trend report revealed a 17% rise

Domestic Prices* of Gold (I/10gm) 3. Anytime Liquidity - Termed as ‘ATL’ (anytime liquidity),
gold loans offer instant access to funds, usually within
60,000
30 minutes, without excessive paperwork, making them
50,000 highly convenient.
40,000 4. Voluntary Interest Payments Option - Gold loans allow

borrowers to pay voluntarily only the interest during
30,000 the loan tenure, with the option to settle the principal
amount upon loan closure.
20,000
10,000 5. ero Processing Fees - Gold loans stand out for their
Z
absence of processing charges, making them a preferred
0.00 choice for borrowers.
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
20 0
20 1
2
-1
-1
-1
-1
-1
-1
-1
-1
-2
-2
-2
11
12
13
14
15
16
17
18
19
20
21
6. No Foreclosure Charges - Unlike other loans, gold
20
*Standard, 0.995 (Mumbai) loans do not incur foreclosure charges or prepayment

Source: CMIE penalties, enabling borrowers to repay the loan early
without additional fees.
Gold prices reached a record high of I52,916 per 10 grams
in August 2020 and subsequently cooled off. By December 7. No Income Proof Required - Financial institutions
2020, gold prices dropped below the I50,000 mark and do not demand income or salary proof for gold loan
fell to I44,776 per 10 grams in March 2021. The decline in applicants, as the loan is secured against gold, making it
prices attracted retail buyers, and pent-up demand for gold accessible to all, regardless of employment status.
from delayed weddings in 2020 contributed to increased
gold demand in 2021-22. As a result, gold imports rose from 8. No Credit Score Requirement - Gold loan approval
651,240 kg in 2020-21 to 879,010 kg in 2021-22. is not contingent on the borrower’s credit score; the
loan amount is based on the market value of the gold.
The aggressive interest rate tightening by central banks However, repaying a gold loan responsibly can help build
worldwide to curb inflation is likely to keep gold prices a good credit score.
subdued. The Reserve Bank of India’s Monetary Policy
Committee recently increased the repo rate to 6.25% 9. E
nhanced Security for Gold - Lenders offer triple-
from 5.90% to focus on withdrawing accommodation layered security for the gold ornaments submitted as
while maintaining inflation within the target and collateral, ensuring their safekeeping in their vault until
supporting growth. the loan is fully repaid.
However, gold may find support due to safe-haven demand ersatile Use of Funds - Gold loan funds have no
10. V
amid concerns over slowing global growth and geopolitical restrictions on their end-use, providing borrowers the
uncertainty. Additionally, the Russia-Ukraine conflict acts as flexibility to utilize them for various purposes, such
a catalyst for higher inflation, increasing the appeal of gold as as home repairs, education, marriage expenses, or
a safe-haven asset and an inflation hedge, further supporting medical emergencies.
gold prices.
Company Review
Features of Gold Loan
Muthoot Finance is a leading non-banking financial company
1. A
ttractive Interest Rates - Gold loans typically come (NBFC) headquartered in India, with a strong presence in the
with lower interest rates compared to other financing financial services industry and is the flagship Company of The
options like personal loans or home loans, making them Muthoot Group. The Group established its gold loan business
an affordable choice. in 1939 as a partnership firm called ‘Muthoot Bankers’ which
has grown into a trusted and reliable financial institution
2. Quick Processing - Due to the backing of physical gold, over the decades, catering to the diverse needs of customers
gold loans have lenient eligibility criteria and minimal across the country. Muthoot Finance received its licence to
documentation, resulting in faster loan processing. operate as NBFC from Reserve Bank Of India in 2001 and
consequently the Group started its gold loan business in
Muthoot Finance Ltd.

Statutory
Reports
With a primary focus on gold loans, Muthoot Finance has The company’s commitment to customer-centricity is evident
become a household name in India, providing quick and through its lenient eligibility criteria, minimal documentation
hassle-free access to funds backed by physical gold. The requirements, and efficient loan processing. Muthoot Finance
company’s gold loan services are renowned for their attractive has built a reputation for delivering quick and transparent
interest rates, making them an affordable financing option services, backed by a dedicated and professional customer
for customers from various economic backgrounds. Muthoot service team.
Finance’s gold loans are a preferred choice due to their secure
and flexible features, including voluntary interest-only Muthoot Finance’s financial prowess is complemented by its
payments during the loan tenure, no foreclosure charges, and strong business ethics and corporate governance practices.
anytime liquidity for instant access to funds. The company adheres to strict compliance standards,
ensuring transparency and fairness in all its dealings.
Beyond gold loans, Muthoot Finance offers a range of financial
products and services to cater to the diverse needs of its In line with its expansion strategy, Muthoot Finance has
customers. The company provides a variety of retail loan steadily grown its branch network, establishing a wide
products, including personal loans, business loans, and two- and robust presence across various regions in India. The
wheeler loans, aimed at meeting the financial aspirations of company’s extensive reach allows it to serve customers in
individuals and businesses alike. both urban and rural areas, contributing to financial inclusion
in the country.
SCOT Analysis
Strengths Challenges
1. Established Brand - Muthoot Finance has a strong and 1. Operational challenges: Gold Loan operations are spread
reputable brand image, recognized as the largest Gold across large number of branches and are decentralised and
Loan NBFC in the country hence poses internal and external security threats to its
operations.
2. Extensive Branch Network - The company has an
extensive branch network across India, providing 2. Short term nature of Gold Loans: Since gold loans are of
convenient accessibility to customers in both urban and short duration, increasing the loan portfolio and balance
rural areas. sheet size each year poses a challenge.
3. Robust Gold Loan Portfolio - Muthoot Finance's core 3. High operational expenses: Since we deal with large
strength lies in its gold loan business, offering secured number of small ticket size loans spread over large number
loans with attractive interest rates and quick processing, of branches, our operational expenses are high
making it a preferred choice for customers.
4. Customer-Centric Approach - The company's customer-

centric approach and lenient eligibility criteria ensure a
smooth and hassle-free experience for borrowers.
5. Efficient Loan Processing - Muthoot Finance's

streamlined loan processing and minimal documentation
requirements contribute to its reputation for quick and
efficient service delivery.
Opportunities Threats
1. Diversification - Muthoot Finance has the opportunity 1. Competition - The financial services sector is highly
to diversify its loan portfolio by exploring other types of competitive, and Muthoot Finance faces competition from
secured and unsecured loans to meet the varied credit other Gold Loan players as well as from alternative loan
requirements of its large customer base. products especially the unsecured loan segment.
2. Digital Transformation - Embracing digital technologies

and expanding online services can enhance customer
convenience and broaden the company's reach to a larger
customer base.

Operational Review Capital Adequacy Ratio

Please see page 60 of the Annual report for details on We were able to maintain our capital adequacy ratio well
operational highlights. above the statutory requirement and achieved a CRAR of
31.77% in FY23 compared to 29.97% in the previous year. Our
Tier I CRAR stood at 31.01% in FY23 compared to 29.10% in
Financial Review
the previous year. Our Tier II CRAR stood at 0.76% in FY23 as
Gross loan assets under Management compared to 0.87% in the previous year.
We reached gross loan assets under management of I 632,098

million in FY23 at a y-o-y growth rate of 9% compared to Earnings per Share
I 580,532 million in the previous year We generated an Earnings per Share of I 86.54 in FY23
compared to I 98.55 in the previous year.
Gold loan assets under Management
We reached gold loan assets under management of I 618,753 Enterprise Risk Management
million at a y-o-y growth rate of 8% in FY23 compared to We strongly believe that every business entail risks, which
I 575,313 million in the previous year. can vary in terms of their impact, likelihood of occurrence,
and speed of onset. These risks are constantly evolving
Revenue and changing, and we consistently monitor the external
environment to identify potential risks and evaluate their
Our total income stood at I 105,437 million in FY23 compared
potential impact on our objectives. Our primary focus is
to I 110,984 million in the previous year.
to manage and mitigate these risks to acceptable levels.
To achieve this, we rely on the guidance of the Board’s Risk
Profit before tax Management Committee, which oversees our enterprise-
We achieved Profit Before Tax of I 46,664 million in FY23 wide risk management initiatives. We strive to leverage our
compared to I 53,094 million in the previous year. resources to convert opportunities into tangible outcomes.
Profit after tax

We achieved Profit After Tax of I 34,735 million in FY23
compared to I 39,543 million in the previous year.

Statutory
Reports
Risk management
We are committed to identification of risks to our business, and place in robust risk management mechanisms that enable us
to achieve our company’s mission and vision
Risk Definition Mitigation Measures

Operational The possibility of direct or indirect To mitigate various operational risks, we have robust systems
loss as a result of system, personnel, or and stringent processes in place. We protect our branches with
process failures, or as a result of external centralised monitoring and surveillance cameras. Employees
occurrences. are trained on how to spot a fraud, such as unauthentic gold, on
a regular basis. We have a centralised system with dedicated
audit personnel for overall risk management.
Collateral Downward fluctuation in gold prices could To address this risk, we have a policy of retaining at least 25%
lead to loss of profits of the gold price of jewellery when calculating the loan amount,
excluding design and production charges. Even if the collateral's
value falls below the repayment amount, the sentimental value
of gold jewellery drives repayment and redemption.
Credit Failure of counter-party to abide by the We have a strict loan approval and collateral evaluation process
terms and conditions of any financial in place, as well as an effective non-performing asset monitoring
contract with us and collection approach. The risk is mitigated to some extent
by the collateral's liquidity, as there is a remote chance of
recovering less than the amount due on account of adequate
security margin.
Market Fluctuations in interest rate Interest rate hikes can be passed on to borrowers; fixed rates
of interest for the bulk of borrowings, as well as all loans and
advances, reduce interest rate risk.
Liquidity The inability to raise cash from the We interact with the Asset and Liabilities Management
market at the best possible price to meet Committee (Committee of Board Of Directors) and ALCO
operational and debt servicing needs. Committee (Committee of Executives) on a regular basis to
examine the liquidity position based on future cash flows.
Due to the nature of business of the company, which employs
funds from a variety of sources, including debentures, external
commercial borrowings, and bank loans with longer maturities
than the loans given, there is less liquidity risk in operations.
Business cycle Associated with the seasonal or cyclical Our extensive presence across India enables us to alleviate
nature of an industry cyclical pressures on various regions' economic growth.

Human Resource Cautionary Statement

Please see Page 62 of the Annual report for details on Statements in this Management Discussion and Analysis
people practices. describing the Company’s objectives, projections, estimates
and expectations may be ‘forward-looking statements’ within
the meaning of applicable laws and regulations. Important
Internal Controls and Adequacy
developments that could affect the Company’s operations
The Company has an adequate internal control system in include a downtrend in the financial services industry, global
place to safeguard assets and protect against losses from or domestic or both, significant changes in the political and
any unauthorised use or disposition. The system authorises, economic environment in India or key markets abroad, tax
records and reports transactions and ensures that recorded laws, litigation, labour relations, exchange rate fluctuations,
data are reliable to prepare financial information and to interest and other factors. Actual results might differ
maintain accountability of assets. The Company’s internal substantially or materially from those expressed or implied.
controls are supplemented by an extensive programme of This report should be read in conjunction with the financial
internal audits, reviews by the management, and documented statements included herein and the notes thereto.
policies, guidelines and procedures.

Statutory
Reports
ANNEXURE- 8
SECRETARIAL AUDIT REPORT
For the Financial Year ended 31st March, 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 read with
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Opposite Saritha Theatre Complex,
Kochi – 682 018.
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Muthoot Finance Limited [CIN: L65910KL1997PLC011300] (hereinafter called “the Company”).
Secretarial Audit was conducted for the financial year ended on 31st March, 2023 in a manner that provided us reasonable
basis for evaluating the corporate conduct / statutory compliances and expressing our opinion thereon.
On the basis of our verification of documents, books, papers, minutes, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its officers, agents and authorised representatives during
the conduct of the Audit. We hereby report that in our opinion, the Company has, during the period covered under the Audit as
aforesaid, complied with the statutory provisions listed hereunder during the year under review and also that the Company
has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter.
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for
the financial year ended 31st March, 2023 according to the provisions of:
(i) The Companies Act, 2013 and the Rules made there under to the extent applicable;
(ii) The Securities Contracts (Regulation) Act, 1956 and the Rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-Laws framed there under;
(iv) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made there under to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under Securities and Exchange Board of India Act, 1992:
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
e) Securities and Exchange Board of India (Issue and Listing of Non-convertible Securities) Regulations, 2021
f) The Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Regulations, 1993.
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
h) The Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998
i) Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(vi) The other laws as applicable specifically to the company and as examined by us are stated hereunder:
a) The Reserve Bank of India Act, 1934
b) Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and
Deposit taking Company (Reserve Bank) Directions, 2016
c) Master Direction- Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016.

d) Raising Money through Private Placement of Non-Convertible Debentures (NCDs) by NBFCs - RBI Guidelines
e) Master Circular – Non-Banking Financial Companies – Corporate Governance (Reserve Bank) Directions, 2015.
(vii) We have also examined compliance with the applicable clauses of the following:
a) Secretarial Standards 1 & 2 issued by The Institute of Company Secretaries of India.
b) Listing Agreement for equity and debt securities entered into with BSE Limited and National Stock Exchange of
India Limited.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.
(viii) On the basis of the information and explanation provided, the Company had no transaction during the period under Audit
requiring the compliance of applicable provisions of Act / Regulations / Directions as mentioned above in respect of:
a) Foreign Direct Investment and External Commercial Borrowings.
b) Buy-back of securities.
c) Delisting of shares.
d) Substantial Acquisition of Shares or Takeovers.
e) Issue of securities other than Equity shares issued under Employee stock option scheme and issue of non-convertible
debt securities.
We further report that
The Board of Directors of the Company is duly constituted with the proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the
period covered under the Audit were carried out in compliance with the provisions of the Act.
Adequate notice and detailed notes on Agenda was given to all Directors at least seven days in advance to schedule the Board
Meetings. There exists a system for seeking and obtaining further information and clarifications on the Agenda items before
the Meeting and for meaningful participation at the Meeting.
Majority decision is carried through and recorded as part of the minutes. We understand that there were no dissenting
members’ views requiring to be captured in the minutes.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the period covered under the Audit, the Company has made the following specific actions
having a major bearing on the company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, referred
to above:
a) The Company had raised a sum of I 33,958 million by issue of Non-Convertible Debentures (NCDs) during the financial
year on private placement basis, in one or more series/tranches.
b) The Company had raised a sum of I 13,233.59 million from public issue of Non-Convertible Debentures during the
financial year.
For KSR & Co Company Secretaries LLP
Dr. K.S. Ravichandran

Managing Partner
(FCS: 3675; CP: 2160)
Date: 9th August, 2023 UDIN: F003675E000768186
Place: Coimbatore PR No: 2635/2022

Statutory
Reports
KSR/CBE/M-154/485/2023-24
To,
The Members,
Opposite Saritha Theatre Complex,
Kochi – 682 018.
Our Secretarial Audit Report of even date of Muthoot Finance Limited [CIN: L65910KL1997PLC011300] hereinafter called
“the Company”) is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We had conducted our audit by examining various records and documents including minutes, registers, certificates and
other records received through electronic mode as enabled by the company. We state that we have not done a physical
verification of the original documents and records. The management has confirmed that the records provided to us for
audit through electronic mode are final, true and correct.
3. Further, our audit report is limited to the verification and reporting of the statutory compliances on laws / regulations /
guidelines listed in our report and the same pertain to the Financial Year ended on 31st March, 2023.
4. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
5. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
6. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
7. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For KSR & Co Company Secretaries LLP
Dr. K.S. Ravichandran

Managing Partner
(FCS: 3675; CP: 2160)
Date: 9th August, 2023 UDIN: F003675E000768186
Place: Coimbatore PR No: 2635/2022

ANNEXURE- 9
DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE
COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND
REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
a) the ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
financial year 2022-23 ; the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive
Officer, Company Secretary or Manager, if any, in the financial year 2022-23;
% increase in Ratio of Remuneration of each
Sl.
Name of Director and KMP Designation remuneration during Director to median remuneration
No.
year 2022-23 of employees of the company
1 George Jacob Muthoot Chairman & Whole Time Director 11% 874:1
2 George Thomas Muthoot Whole Time Director 11% 874:1
3 George Alexander Muthoot Managing Director 11% 874:1
4 Alexander George Whole Time Director 11% 874:1
5 George Muthoot George Whole Time Director 289% 82:1
6 George Muthoot Jacob Whole Time Director 289% 82:1
7 George Alexander (Jr.) Whole Time Director 289% 82:1
8 Jose Mathew Independent Director 2% 9:1
9 Jacob Benjamin Koshy Independent Director 2% 8:1
10 Ravindra Pisharody Independent Director 10% 8:1
11 Pratip Chaudhuri(1) Independent Director (50%) 3:1
12 V A George Independent Director (5%) 8:1
13 Usha Sunny Independent Director 10% 8:1
14 Abraham Chacko Independent Director 105% 8:1
15 C A Mohan(2) Independent Director Not comparable 5:1
16 Oommen K Mammen Chief Financial Officer 12% Not applicable
17 Rajesh A Company Secretary 3% Not applicable
(1) Retired from Board of Directors with effect from August 31, 2022
(2) Appointed as Independent Director with effect from August 31, 2022
b) the percentage increase in the median remuneration of employees in the financial year 2022-23: 4.03%
c) The number of permanent employees on the rolls of company as on March 31, 2023: 27,273
d) 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;
The average percentile in the salaries of employees other than the managerial personnel increased by 3.91%. The total
managerial remuneration for the Financial Year 2022-23 was I 965.09 millions as against I 828.85 millions during the
previous year, an increase of 16.44%. The increase in managerial remuneration is on account of 16.50% increase in
remuneration of Managing Director and six Whole-Time Directors. This was based on the overall performance of the
Company during the year. Loan Assets under management increased by 9% reaching an all-time high of I 632,098 millions.
Though Profit after tax decreased by 12% at I 34,735 millions, this was achieved amidst extreme competition and was
higher than normal levels of profitability. Hence the Board considered increasing variable Annual Performance Incentive
of Managing Director and three Whole-Time Directors cumulatively from I 551.91 millions to I 576.08 millions due to
exceptional performance of the Company during the year amidst difficult market conditions. Commission to Non‑Executive
Directors were also increased by 7% for the above reasons. The above increase in managerial remuneration is within the
limits approved by shareholders. There is no exceptional circumstance for increase in managerial remuneration except as
stated above.
e) The remuneration paid is as per the remuneration policy of the Company.
Sd/- Sd/-
DIN: 00018235 DIN: 00016787
Place: Kochi,

Statutory
Reports
ANNEXURE- 10
Disclosure pursuant to Part A of Schedule V read with Regulation 34(3) and 53(f) of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
I in Millions
Amount Maximum Amount
Sl.
Loans and Advances in the nature of loans Outstanding as at Outstanding
No.
31.03.2023 during the year
(A) To Subsidiaries 2,600 2,600
(B) To Associates N.A N.A
(C) To Firms/Companies in which Directors are Interested (other than (A) and (B) above) Nil Nil
(D) Investments by the loanee in the shares of Parent Company and Subsidiary Company when the Nil Nil
Company has made a loan or advance in the nature of loan
Disclosures of transactions of the listed entity with any person or entity belonging to the promoter/promoter group which
hold(s) 10% or more shareholding in the listed entity:
Related Party transactions during the year:
George Thomas Muthoot George Jacob Muthoot

Particulars Year Ended Year Ended
March 31, 2023 March 31, 2023
Interest paid on Borrowings 97.70 80.06
Directors Remuneration 222.02 222.02
Loans accepted 2,086.99 1,695.42
Loans repaid 2,529.77 2,762.10
Purchase of Listed NCDs of the Company 539.00 854.00
Redemption of Listed NCDs of the Company 655.16 655.16
Dividend paid 872.62 872.62
Balance outstanding as at the year end: Asset/ (Liability)
George Thomas Muthoot George Jacob Muthoot

Particulars As at As at
March 31, 2023 March 31, 2023
NCDs - Listed (625.84) (940.84)
Borrowings (796.63) (140.34)
Directors Remuneration Payable (72.15) (72.15)
Sd/- Sd/-
DIN: 00018235 DIN: 00016787
Place: Kochi,

Independent Auditors’ Report
To the Members of MUTHOOT FINANCE LIMITED Basis for Opinion

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

1. Expected Credit Loss under IND AS 109 • Assessed the accounting policy for impairment of financial assets and its
“Financial Instruments” compliance with IND AS 109.

T he Company recognises Expected Credit Losses (ECL) • Company obtained an understanding of the Company’s Expected Credit
on loan assets under IND AS 109 “Financial Instruments” Loss (ECL) calculation and the underlying assumptions.
based on the Expected Credit Loss model developed • Tested the key controls over the assessment and identification of
by the Company. The estimation of expected credit significant increase in credit risk and staging of assets.
loss on financial instruments involves significant
judgement and estimates. Key estimates involve • Sample testing of the accuracy and appropriateness of information used in
determining Exposure at Default (EAD), Probability the estimation of Probability of Default (PD) and Loss Given Default (LGD).
at Default (PD) and Loss Given Default (LGD) using • Tested the arithmetical accuracy of the computation of PD and LGD and
historical information. Hence, we have considered also performed analytical procedures to verify the reasonableness of the
the estimation of ECL as a Key Audit Matter. computation.
Refer Note 42 (Risk Management) to the standalone • Assessed the disclosure made in relation to IND AS 109 for ECL allowance.
financial statements. Further, we also assessed whether the disclosure of key judgements and
assumptions are adequate.

Standalone
Financial
Statements

2. Related Party Transactions • Evaluated the Company’s policies, processes and procedures in respect of
We identified related party transactions as a key identifying and disclosing related party transactions.
audit matter due to the significance of related party • Read the minutes of meetings of the Shareholders, Board and Audit
transactions, regulatory compliance and risk of such Committee regarding the Company’s assessment of related party
transactions remaining undisclosed in the financial transactions for arm’s length pricing.
statements. • Assessed the compliance with the Act, including authorisation and
approvals as specified in sections 177 and 188 of the Act and Rules thereon
and the Securities and Exchange Board of India regulations with respect
to related party transactions.
• Tested on a sample basis related party transactions with the underlying
contracts and other documents.
3. Compliance and disclosure requirements • Assessed the systems and processes laid down by the Company to

Compliance and disclosure requirements under the appropriately ensure compliance and disclosures as per the applicable Ind
applicable Indian Accounting Standards (Ind AS), AS, RBI guidelines and other applicable statutory, regulatory and financial
Reserve Bank of India (RBI) guidelines and other reporting framework.
applicable statutory, regulatory and financial reporting • Designed and performed audit procedures to assess the completeness
framework. and correctness of the details disclosed having regard to the assumptions
made by the management in relation to the applicability and extent of
disclosure requirements.
• Relied on internal records of the Company and external confirmations
wherever necessary.
4. Litigations In assessing the litigations, we have:
The Company has various tax litigations pending under • Read the communications with the relevant tax authorities in respect to
the Income Tax Act 1961, Goods and Services Tax Act 2017, the pending tax litigations and also considered the submissions made by
Service Tax under Finance Act 1994 and Value Added the management to the respective appellate authorities.
Tax Acts of various states. The Company has disputed • We verified the accuracy of the disputed amounts with the relevant
these in various forums and the outcome of these cases communication from the tax authority.
will depend on significant judgements, hence we have
identified pending litigation as a Key Audit Matter.
5. IT Systems and Controls • Understood the IT systems and controls over key financial accounting and

The Company uses Information Technology (IT) reporting systems.
application for financial accounts and reporting • Tested the general IT controls for design and operating effectiveness.
process. Any gap in the financial accounting and • Understood the changes made in the IT environment during the year and
reporting process may result in a misstatement, ascertained its effect on the financial statements controls and accounts.
hence we have identified IT systems and controls
over financial reporting as a Key Audit Matter. • We also assessed, through sample tests, the information generated from
these systems which were relied upon for our audit.
Information Other than the Standalone Financial Our opinion on the standalone financial statements does not
Statements and Auditors’ Report thereon (Other cover the other information and we do not express any form
Information) of assurance conclusion thereon.
The Company’s Board of Directors is responsible for the
other information. The other information comprises the In connection with our audit of the standalone financial
information included in the Corporate Overview, Report of statements, our responsibility is to read the other information
the Board of Directors, Management Discussion and Analysis identified above when it becomes available and, in doing
Report, Business Responsibility Report and Report on so, consider whether the other information is materially
Corporate Governance in the Annual Report of the Company inconsistent with the standalone financial statements or
for the financial year 2022-23, but does not include the our knowledge obtained during the course of our audit, or
standalone financial statements and our auditors’ report otherwise appears to be materially misstated.
thereon. The reports containing the other information as
above are expected to be made available to us after the date of When we read the reports containing the other information,
this auditors’ report. if we conclude that there is a material misstatement therein,
we are required to communicate the matter to those charged
with governance and take necessary actions as per applicable
laws and regulations.

Responsibilities of Management and Those As part of an audit in accordance with SAs, we exercise
Charged with Governance for the Standalone professional judgement and maintain professional skepticism
Financial Statements throughout the audit. We also:
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to • Identify and assess the risk of material misstatement of
the preparation of these standalone financial statements that the standalone financial statements, whether due to fraud
give a true and fair view of the financial position, financial or error, design and perform audit procedures responsive
performance including other comprehensive income, cash to those risks, and obtain audit evidence that is sufficient
flows and changes in equity of the Company in accordance and appropriate to provide a basis for our opinion. The
with the accounting principles generally accepted in India, risk of not detecting a material misstatement resulting
including the Indian Accounting Standards (Ind AS) specified from fraud is higher than for one resulting from error, as
under section 133 of the Act. This responsibility also includes fraud may involve collusion, forgery, intentional omissions,
maintenance of adequate accounting records in accordance misrepresentations, or the override of internal control;
with the provisions of the Act for safeguarding of the assets • Obtain an understanding of internal control relevant
of the Company and for preventing and detecting frauds and to the audit in order to design audit procedures that are
other irregularities; selection and application of appropriate appropriate in the circumstances. Under section 143(3)
accounting policies; making judgments and estimates that (i) of the Companies Act, 2013, we are also responsible
are reasonable and prudent; and design, implementation for expressing our opinion on whether the Company has
and maintenance of adequate internal financial controls, adequate internal financial controls system in respect
that were operating effectively for ensuring the accuracy of financial statements in place and the operating
and completeness of the accounting records, relevant to the effectiveness of such controls.
preparation and presentation of the standalone financial
statements that give a true and fair view and are free from • Evaluate the appropriateness of accounting policies used
material misstatement, whether due to fraud or error. and the reasonableness of accounting estimates and
related disclosures made by the management.
In preparing the standalone financial statements, the Board of • Conclude on the appropriateness of the management’s use
Directors is responsible for assessing the Company’s ability to of the going concern basis of accounting and, based on the
continue as a going concern, disclosing, as applicable, matters audit evidence obtained, whether a material uncertainty
related to going concern and using the going concern basis exists related to events or conditions that may cast
of accounting unless the Board of Directors either intends significant doubt on the Company’s ability to continue as
to liquidate the Company or to cease operations, or has no a going concern. If we conclude that a material uncertainty
realistic alternative but to do so. exists, we are required to draw attention in our auditors’
report to the related disclosures in the standalone
The Board of Directors is also responsible for overseeing the financial statements or, if such disclosures are inadequate,
Company’s financial reporting process. to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors’
Auditors’ Responsibilities for the Audit of the report. However, future events or conditions may cause the
Standalone Financial Statements Company to cease to continue as a going concern.
Our objectives are to obtain reasonable assurance about • Evaluate the overall presentation, structure and content
whether the standalone financial statements as a whole of the standalone financial statements, including the
are free from material misstatement, whether due to fraud disclosures, and whether the standalone financial
or error, and to issue an auditors’ report that includes our statements represent the underlying transactions and
opinion. Reasonable assurance is a high level of assurance, events in a manner that achieves fair presentation.
but is not a guarantee that an audit conducted in accordance
Materiality is the magnitude of misstatements in the
with SAs will always detect a material misstatement when
standalone financial statements that individually or in
it exists. Misstatements can arise from fraud or error and
aggregate, make it probable that the economic decisions of
are considered material if, individually or in the aggregate,
a reasonably knowledgeable user of the standalone financial
they could reasonably be expected to influence the economic
statements may be influenced. We consider quantitative
decisions of users taken on the basis of these standalone
materiality and qualitative factors in
financial statements.
(i) planning the scope of our audit work and in evaluating
the results of our work; and

Standalone
Financial
Statements
(ii) to evaluate the effect of any identified misstatements in and data required for the purposes of our audit are
the standalone financial statements. available therein.
We communicate with those charged with governance c. The Standalone Balance Sheet, the Statement of
regarding, among other matters, the planned scope and Profit and Loss (including Other Comprehensive
timing of the audit and significant audit findings, including Income), the Cash Flow Statement and Statement of
any significant deficiencies in internal control that we identify Changes in Equity dealt with by this Report are in
during our audit. agreement with books of account;
We also provide those charged with governance with a d. In our opinion, the aforesaid standalone financial
statement that we have complied with relevant ethical statements comply with the Indian Accounting
requirements regarding independence, and to communicate Standards specified under section 133 of the
with them all relationships and other matters that may Act read with Companies (Indian Accounting
reasonably be thought to bear on our independence, and Standards) Rules, 2015, as amended;
where applicable, related safeguards.
e. On the basis of the written representation received
From the matters communicated with those charged with from the directors as on March 31, 2023, taken
governance, we determine those matters that were of on record by the Board of Directors, none of the
most significance in the audit of the standalone financial directors are disqualified as on March 31, 2023,
statements for the financial year ended March 31, 2023 and from being appointed as a director in terms of
are therefore the key audit matters. We describe these matters section 164(2) of the Act;
in our auditors’ report unless law or regulation precludes
public disclosure about the matter or when, in extremely f. With respect to the adequacy of the internal
rare circumstances, we determine that a matter should financial controls with reference to these
not be communicated in our report because the adverse standalone financial statements and the operating
consequences of doing so would reasonably be expected to effectiveness of such controls, refer to our separate
outweigh the public interest benefits of such communication. report in ‘Annexure B’ to this report;
g. With respect to the other matters to be included

Report on Other Legal and Regulatory
in the Auditors’ report in accordance with section
Requirements
197(16) of the Act, in our opinion and to the best of
1. As per the Companies (Auditor’s Report) Order, 2020 our information and according to the explanations
(‘the Order’), issued by the Central Government of given to us, the remuneration paid/provided by
India in terms of sub section (11) of section 143 of the the Company to its directors during the year is in
Act, we give in ‘Annexure A’, a statement on the matters accordance with the provisions of section 197 read
specified in paragraphs 3 and 4 of the Order, to the with Schedule V to the Act; and
extent applicable.
h. With respect to other matters to be included in
2. As required by section 143(3) of the Act, we report that: the Auditors’ report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
a. We have sought and obtained all the information as amended, in our opinion and to the best of our
and explanations which to the best of our knowledge information and according to the explanations
and belief were necessary for the purpose of given to us:
our audit;
i. The Company has disclosed the impact of
b. In our opinion, proper books of account as required pending litigation on its financial position in its
by law have been kept by the Company so far as it standalone financial statements – Refer Note
appears from our examination of those books. Since 38 to the standalone financial statements.
the key operations of the Company are automated
with the key applications integrated to core banking ii. The Company has made provisions, as required
system/Management Information System, the audit under the applicable law or accounting
is carried out centrally as all the necessary records standards, for material foreseeable losses,

if any, on long term contracts including been received by the Company from any
derivative contracts. person(s) or entity(ies), including foreign
entities (“Funding Parties”), with the
iii. There has been no delay in transferring understanding, whether recorded in
amounts, required to be transferred, to the writing or otherwise, that the Company
Investor Education and Protection Fund by shall, whether directly or indirectly, lend
the Company. or invest in other persons or entities
identified in any manner whatsoever
iv. With respect to clause (e) of Rule 11 of the by or on behalf of the Funding Party
Companies (Audit and Auditors) Rules, 2014, (“Ultimate Beneficiaries”) or provide any
as amended; guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
1. The Management has represented
that, to the best of its knowledge and 3. Based on the audit procedures
belief, as disclosed in the standalone performed that have been considered
financial statements, no funds have reasonable and appropriate in the
been advanced or loaned or invested circumstances, nothing has come to our
(either from borrowed funds or share notice that has caused us to believe that
premium or any other sources or kind the representations under sub-clause
of funds) by the Company to or in any (i) and (ii) of Rule 11(e) contain any
other person(s) or entity(ies), including material misstatement.
foreign entities (“Intermediaries”), with
the understanding, whether recorded v. The dividend declared/paid during the year
in writing or otherwise, that the by the Company is in compliance with section
Intermediary shall, whether directly or 123 of the Act.
indirectly lend or invest in other persons
or entities identified in any manner vi. Proviso to Rule 3(1) of the Companies
whatsoever by or on behalf of the Company (Accounts) Rules, 2014 requires maintaining
(“Ultimate Beneficiaries”) or provide any books of account using accounting software
guarantee, security or the like on behalf which has a feature of recording audit
of the Ultimate Beneficiaries. trail (edit log) facility is applicable to the
Company with effect from April 1, 2023, and
2. The Management has represented, accordingly, reporting under Rule 11(g) of
that, to the best of its knowledge and Companies (Audit and Auditors) Rules, 2014
belief, as disclosed in the standalone is not applicable for the financial year ended
financial statements, no funds have March 31, 2023.
For Elias George & Co., For Babu A. Kallivayalil& Co.,

Firm Regn. No. 000801S Firm Regn. No. 005374S
Sd/- Sd/-
Partner Partner
Membership No: 205377 Membership No: 026973
UDIN: 23205377BGQGGT8012 UDIN: 23026973BGUHZE2637
May 19, 2023 May 19, 2023

Kochi Kochi

Standalone
Financial
Statements
‘ANNEXURE A’ REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING “REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS” OF OUR INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF MUTHOOT FINANCE LIMITED FOR THE YEAR ENDED MARCH 31, 2023
i. a. A. In our opinion the Company is maintaining proper records showing full particulars including quantitative
details and situation of Property, Plant and Equipment (‘PPE’).
B. In our opinion, the Company is maintaining proper records showing full particulars of intangible assets.
b. According to the information and explanation given to us, the Company has a regular programme of physical
verification of its PPE which in our opinion is reasonable having regard to the size of the Company and nature of
its assets. Pursuant to the programme, the Management has physically verified the Property, Plant and Equipment
during the year and no material discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations given to us and on the basis of our examination of
the records of the Company, the title deeds of immovable property (other than properties where the Company is the
lessee and the lease agreements are duly executed in favour of the Company), disclosed in the financial statements
are held in the name of the Company. In respect of certain immovable properties acquired under a scheme of
amalgamation in a prior year, the title deeds continue to remain in the name of the erstwhile owners, the details of
which are as stated below:
Whether
Gross promoter, Period held –
Held in name Reason for not being held in
S.No: Description of property carrying director or indicate range,
of name of Company
value their relative where appropriate
or employee
1 Flat No: 1F in "West Gate 7,74,095.00 George Jacob Promoter From 01/04/2004 The property was acquired
Terrace" Pandit Karuppan by the Company under a
road, Thevara, Cochin 'Scheme of Arrangement
measuring 1224 Sq.ft and Amalgamation' effective
from April 01, 2004, vide
order dated January 31,
2005, by the Hon. High Court
of Kerala. The order states
that the undertakings of the
transferor company shall,
with effect from the opening
of the business as on the
transfer date and without any
further act or deed, be shall
stand transferred to or vested
in the transferee company.
Hence no further mutation of
the property is required to
be done.
2 Office Space in " Vikas 3,96,000.00 Late M. G. Promoters From 01/04/2004 -do-
Marg", Laxmi Nagar, New George,
Delhi, measuring 1,400 George
Sq. Ft Thomas,
George Jacob
and George
Alexander
3 Flat No: 4236, 5&6 Sector B 3,90,343.00 Late M. G. Promoter From 01/04/2004 -do-
in Vasant Kunj, New Delhi George
125.09 Sq.Mtr
4 Office Space in First Floor 9,64,534.00 Late M. G. Promoter From 01/04/2004 -do-
of "Nehru Place" Satkar George
Building 79-80 New Delhi
measuring 591 Sq. ft.

Whether
of name of Company
or employee
5 Office Space in "Pattom 3,14,832.00 Late M. G. Promoters From 01/04/2004 -do-
Building", Trivandrum, George,
situated in 5 cents of George
land in Sy. No: 1752/B/1 Thomas,
in Nadathuvinakkam, George Jacob
Trivandrum and George
Alexander
6 Flat No: 221 Block C, in 6,94,456.00 Late M. G. Promoter From 01/04/2004 -do-
"Sidharth Extension", New George
Delhi, measuring 900 Sq. ft.
7 Office space No: 106/107 in 16,24,616.00 Late M. G. Promoters From 01/04/2004 -do-
"NavakethaSecunderabad", George,
measuring 1446.5 Sq. ft. George
Thomas,
George Jacob
and George
Alexander
8 Office space in Kurian 9,43,088.00 George Promoter From 01/04/2004 -do-
Towers, Banerjee Road Alexander
Kochi - 682018, measuring
1,092 Sq. ft. (Sy. No. 318/7)
9 Office space in Kurian 7,73,081.00 Anna Relative of From 01/04/2004 -do-
Towers, Banerjee Road Alexander Promoter
897 Sq. ft. (Sy. No. 318/7)
10 Office space in Kurian 13,09,640.00 George Jacob Promoter From 01/04/2004 -do-
Towers, Banerjee Road
1,469.50 Sq ft. (Sy. No.
318/7)
11 Office space in Kurian 6,91,956.00 Elizabeth Relative of From 01/04/2004 -do-
Towers, Banerjee Road Jacob Promoter
781 Sq. ft. (Sy. No. 318/7)
Towers, Banerjee Road Thomas
932 Sq. ft. (Sy. No. 318/7)
Towers, Banerjee Road Thomas
1094 Sq. ft. (Sy. No. 318/7)
14 Office space in Kurian 8,57,171.00 Susan Relative of From 01/04/2004 -do-
Towers, Banerjee Road Thomas Promoter
1000 Sq. ft. (Sy. No. 318/7)
15 Office space in Kurian 18,73,724.00 Late. M G Promoter From 01/04/2004 -do-
Towers, Banerjee Road George
1,637 Sq. ft. (Sy. No. 318/7)
16 Flat No: 2B3 at B-Canty 20,38,255.00 George Jacob Promoter From 01/04/2004 -do-
Homes in 1,525 cents of
land in Shasthamangalam,
Trivandrum
17 Office space at "Alpha 16,76,642.00 Late M. G. Promoter From 01/04/2004 -do-
Plaza, Kadavanthara, George
Ernakulam measuring
1345 sq.ft

Standalone
Financial
Statements
Whether
of name of Company
or employee
18 Office space at "Alpha 12,23,635.00 George Promoter From 01/04/2004 -do-
Plaza, Kadavanthara, Alexander
Ernakulam measuring
1500 sq.ft
Ernakulam measuring
1733 sq.ft
Ernakulam measuring 213
sq.ft
Ernakulam measuring 315
sq.ft
Plaza, Kadavanthara, Thomas
Ernakulam measuring
2098 sq.ft
Plaza, Kadavanthara, Thomas
Ernakulam measuring
1375 sq.ft
24 Office space at "Alpha 24,95,574.00 George Jacob Promoter From 01/04/2004 -do-
Plaza, Kadavanthara,
Ernakulam measuring
1826 sq.ft
25 Office space at "Alpha 21,60,701.00 George Jacob Promoter From 01/04/2004 -do-
Plaza, Kadavanthara,
Ernakulam measuring
2,109 sq.ft
d. According to the information and explanations b. The Company has been sanctioned working
given to us and based on the books of account of capital limits in excess of I5 Crores in aggregate
the Company examined by us, the Company has not from banks or financial institutions on the basis
revalued its PPE (including Right of Use assets) or of security of current assets. In our opinion, the
intangible assets or both during the year. quarterly statements filed with banks or financial
institutions are in agreement with the books
e. According to the information and explanations of account.
given to us and on the basis of our examination of
the records of the Company, no proceedings iii. a. The principal business of the Company is to
have been initiated or are pending against the give loans, hence the requirement to report on
Company as at March 31, 2023, for holding any clause 3(iii) (a) of the Order is not applicable to
benami property under the Benami Transactions the Company.
(Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder. b. During the year the investments made, guarantee
provided, security given and the terms and
ii. a. The Company is a Non-Banking Finance Company conditions of the grant of all loans and advances
and its business does not require maintenance of in the nature of loans and guarantees are, in our
inventories. Accordingly, the provision of clause opinion, not prejudicial to the Company’s interest.
3(ii)(a) of the Order is not applicable to the Company.

c. In respect of loans and advances in the nature of during the year which attract the directives issued by
loans granted by the Company, the schedule of the Reserve Bank of India. Being a Non-Banking Finance
repayment of principal and payment of interest Company registered with Reserve Bank of India, the
has been stipulated. Being a Non-Banking (Non- provisions of Sections 73 to 76 or any other relevant
Deposit Taking Systematically Important) Finance provisions of the Act and the Rules framed there under
Company, there are instances where the repayment regarding acceptance of deposits are not applicable.
of principal and interest are not as per the Accordingly, paragraph 3(v) of the Order is not applicable
stipulated terms. to the Company.
d. In respect of loans and advances granted by vi. In our opinion and according to the information and
the Company, Refer notes 8(1) and 42(I) to the explanations given to us, the Central Government has
Standalone Financial Statements for the total not prescribed the maintenance of cost records under
amount overdue for more than ninety days under Section 148(1) of the Act for the Company.
the title ‘Stage 3’ loans. In our opinion and according
to the information and explanations given to us, vii. a. In our opinion and according to the information and
reasonable steps have been taken by the Company explanations given to us, the Company has generally
for recovery of the principal and interest. been regular in depositing any undisputed statutory
dues including goods and services tax, provident
e. The principal business of the Company is to fund, employees’ state insurance, income tax, sales
give loans, hence the requirement to report on tax, service tax, duty of customs, duty of excise,
clause 3(iii) (e) of the Order is not applicable to value added tax, cess and any other statutory dues
the company. to the appropriate authorities.
f. The Company has not granted any loans or According to the information and explanations
advances in the nature of loans, either repayable given to us, no undisputed amounts payable
on demand or without specifying any terms or in respect of provident fund, employees’ state
period of repayment. Hence the requirement to insurance, income tax, goods and services tax, sales
report loans granted to promoters, related parties tax, service tax, duty of customs, duty of excise,
as defined in clause 76 of section 2 of the Act or to value added tax, cess and other material statutory
any other parties on clause 3(iii) (f) of the Order is dues were in arrears as at March 31, 2023, for a
not applicable. period of more than six months from the date they
became payable.
iv. In our opinion and according to the information and
explanations given to us, the Company has complied b. In our opinion and according to the information
with the provisions of sections 185 and 186 of the Act and explanations given to us, there are no disputed
in respect of loans granted, investments made and amounts dues to be deposited in respect of goods
guarantees given, where applicable. The Company has and services tax, provident fund, employees’ state
not provided any security for which the provisions of insurance, sales tax, duty of customs, duty of excise,
sections 185 and 186 of the Act are applicable. value added tax and cess as at March 31, 2023,
except the following:
v. The Company has not accepted any deposits from the
public or amounts which are deemed to be deposits

Standalone
Financial
Statements
According to the information and explanations given to us the following disputed amounts of income tax and service
tax have not been deposited with the authorities as at March 31, 2023:
Amount
payable (Net of Period to which the
Nature of dues Statute Forum where the dispute is pending
payments made) amount relates
K in millions
Service tax Finance Act, 1994 3,004.08 2007-2008 to Customs Excise and Service Tax
(excluding interest) 2011-2012 Appellate Tribunal (Bangalore)
-do- -do- 94.21 2014-2015 High Court of Kerala
Income tax Income Tax Act, 1961 53.66 AY 2011-12 Application for rectification pending
before assessing officer
viii. In our opinion and according to the information financial statements of the Company, we report
and explanations given to us and on the basis of our that the Company has not taken any funds from
examination of the records of the Company, there are no any entity or person on account of or to meet
instances of any transactions not recorded in the books the obligations of its subsidiaries, associates or
of account which have been surrendered or disclosed as joint ventures.
income during the year in the tax assessments under the
Income Tax Act, 1961. f. According to the information and explanations
given to us and procedures performed by us, we
ix. a. In our opinion and according to the information report that the Company has not raised loans
and explanations given to us and on the basis of during the year on the pledge of securities held in its
our examination of the records of the Company, the subsidiaries, joint ventures or associate companies.
Company has not defaulted in repayment of loans
or other borrowings or in the payment of interest x. a. According to the information and explanations
thereon to any lender. provided to us and the records of the Company
examined by us, the Company has not raised monies
b. According to the information and explanations by way of initial public offer or further public offer
given to us and on the basis of our audit procedures, except for the public offer of debt instruments.
we report that the Company has not been declared a
wilful defaulter by any bank or financial institution According to the information and explanation
or any other lender. provided to us and the records of the Company
examined by us, the monies raised by way of
c. In our opinion and according to the information and public offer of debt instruments during the year
explanations given to us, the Company has utilized were applied for the purposes for which those
the money obtained by way of term loans for the were raised.
purpose for which they were obtained.
b. According to the information and explanations
d. According to the information and explanations given given to us, the Company has not made any
to us, and the procedures performed by us, and on preferential allotment/private placement of shares
an overall examination of the financial statements or convertible debentures (fully/partly/optionally
of the Company, we report that funds raised on convertible) during the year except Employee Stock
short-term basis have, prima facie not been utilized Options issued during the year.
for long-term purposes by the Company.
xi. a. To the best of our knowledge and according to the
e. According to the information and explanations information and explanations given to us, there
given to us and on an overall examination of the have been instances of fraud on the Company

amounting to I52.16 million as included in Note 50 xv. According to the information and explanations given to
to the standalone financial statements. No fraud by us, in our opinion, during the year the Company has not
the Company has been noticed or reported during entered into any non-cash transaction with its directors
the year, nor have we been informed of any such or persons connected with its directors and hence
instance by the management. reporting requirement under Clause 3 (xv) of the Order
are not applicable to the Company.
b. No report under sub-section (12) of section 143 of
the Act has been filed in Form ADT-4 as prescribed xvi. a. The Company is a Non-Banking Finance Company
under Rule 13 of Companies (Audit and Auditors) and is required to obtain Registration under
Rules, 2014 with the Central Government during section 45-IA of the Reserve Bank of India Act, 1934
the year by the Statutory Auditors and up to the and such registration has been obtained.
date of this Report.
b. The Company has a valid Certificate of Registration
c. We have taken into consideration the whistle (CoR) from the Reserve Bank of India (RBI) for
blower complaints received by the Company during conducting Non-Banking Financial activities and
the year while determining the nature, timing and no business has been conducted by the Company
extent of audit procedures. without a valid CoR.
xii. The Company is not a Nidhi company as prescribed c. The Company is not a Core Investment Company
under Section 406 of the Companies Act. Accordingly, the (CIC)as defined in the regulations made by the
reporting requirement under clause 3 (xii) of the Order Reserve Bank of India. Accordingly, the reporting
is not applicable. requirements under clause 3 (xvi)(c) of the Order is
not applicable.
xiii. In our opinion and according to the information and
explanations given to us, all transactions with related d. As per the information and explanations given to us,
parties are in compliance with Sections 177 and 188 there are no core investment companies as defined
of the Act, where applicable, and the details of such in the regulations made by the Reserve Bank of
transactions have been disclosed in the financial India as part of its group and hence the reporting
statements as required by the applicable Indian requirements under clause 3 (xvi)(d) of the Order
Accounting Standards. are not applicable.
xiv. a. In our opinion and based on our examination, xvii. T he Company has not incurred any cash losses in
the Company has an internal audit system the financial year and in the immediately preceding
commensurate with the size and nature of financial year.
its business.
xviii. T here has been no resignation of the statutory auditors
b. The internal audit is performed as per a planned of the Company during the year.
program approved by the management and those
charged with governance of the Company. We xix. According to the information and explanations given
have considered, during the course of our audit, to us and on the basis of the financial ratios, ageing
the reports of the branch internal audits for the and expected dates of realisation of financial assets
year under audit in accordance with the guidance and payment of financial liabilities, other information
provided in SA 610 ‘Using the Work of Internal accompanying the financial statements, our knowledge
Auditors’ issued by the Institute of Chartered of the Board of Directors and management plans and
Accountants of India. based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which

Standalone
Financial
Statements
causes us to believe that any material uncertainty exists b. According to the information and explanation given
as on the date of the audit report that the Company is not to us and based on our examination of the records
capable of meeting its liabilities existing at the date of of the Company, the Company has fully spent
Balance Sheet as and when they fall due within a period of the required amount towards Corporate Social
one year from the Balance Sheet date. We, however, state Responsibility and there are no unspent Corporate
that this is not an assurance as to the future viability Social Responsibility amount for the current
of the Company. We further state that our reporting is Financial Year which is required to be transferred
based on the facts up to the date of the audit report and to a fund specified in Schedule VII to the Companies
we neither give any guarantee nor any assurance that all Act, 2013 or special account in compliance with the
liabilities falling due within a period of one year from the provisions of sub Section 6 of Section 135 of the
Balance Sheet date, will get discharged by the Company said Act. However in respect of the earlier Financial
as and when they fall due. Year the Company has transferred unspent amount
under sub Section 5 of Section 135 of the Companies
xx. a. In our opinion and according to the information Act, 2013 pursuant to ongoing projects in a special
and explanations given to us, there is no unspent account in compliance with provisions of sub
amount required to be transferred to a fund Section 6 of Section 135 of the said Act.
specified in Schedule VII of the Companies Act in
compliance with second proviso to sub section 5 of
section 135 of the said Act for the year.

Sd/- Sd/-
Partner Partner
May 19, 2023 May 19, 2023

Kochi Kochi

‘ANNEXURE B’ REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING “REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS” OF OUR INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
Report on the Internal Financial Controls under prescribed under section 143(10) of the Act, to the extent
Clause (i) of Sub-section 3 of Section 143 of the applicable to an audit of internal financial controls, both
Companies Act, 2013 applicable to an audit of internal financial controls and, both
issued by the ICAI. Those Standards and the Guidance Note
Opinion require that we comply with ethical requirements and plan
We have audited the internal financial controls over financial and perform the audit to obtain reasonable assurance about
reporting of Muthoot Finance Limited (‘the Company’) whether adequate internal financial controls with reference
as of March 31, 2023, in conjunction with our audit of the to standalone financial statements was established and
standalone financial statements of the Company for the year maintained and if such controls operated effectively in all
ended on that date. material respects.
In our opinion, the Company has, in all material respects, an Our audit involves performing procedures to obtain audit
adequate internal financial controls system over financial evidence about the adequacy of the internal standalone
reporting and such internal financial controls over financial financial controls system with reference to standalone
reporting were operating effectively as at March 31, 2023, financial statements and their operating effectiveness.
based on the internal control over financial reporting criteria Our audit of internal financial controls with reference to
established by the Company considering the essential standalone financial statements included obtaining an
components of internal control stated in the Guidance Note on understanding of internal financial controls with reference
‘Audit of Internal Financial Controls Over Financial Reporting’ to standalone financial statements, assessing the risk that
issued by the Institute of Chartered Accountants of India (the a material weakness exists, and testing and evaluating the
‘Guidance Note’). design and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend on the
auditors’ judgement, including the assessment of the risks of
Management’s Responsibility for Internal
material misstatement of the standalone financial statements,
Financial Controls
whether due to fraud or error.
The Company’s management is responsible for establishing
and maintaining internal standalone financial controls based We believe that the audit evidence we have obtained is
on the internal control with reference to standalone financial sufficient and appropriate to provide a basis for our audit
statements criteria established by the Company considering opinion on the Company’s internal financial controls system
the essential components of internal control stated in the with reference to standalone financial statements.
Guidance Note. These responsibilities include the design,
implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring Meaning of Internal Financial Controls with
the orderly and efficient conduct of its business, including reference to financial statements
adherence to Company’s policies, the safeguarding of its A Company’s internal financial control over financial reporting
assets, the prevention and detection of frauds and errors, the is a process designed to provide reasonable assurance
accuracy and completeness of the accounting records, and regarding the reliability of financial reporting and the
the timely preparation of reliable financial information, as preparation of standalone financial statements for external
required under the Companies Act, 2013 (‘the Act’). purposes in accordance with generally accepted accounting
principles. A Company’s internal standalone financial control
with reference to standalone financial statements includes
Auditors’ Responsibility
those policies and procedures that:
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to standalone 1. pertain to the maintenance of records that, in reasonable
financial statements of the Company based on our audit. detail, accurately and fairly reflect the transactions and
We conducted our audit in accordance with the Guidance dispositions of the assets of the Company;
Note and the Standards on Auditing, issued by the Institute
of Chartered Accountants of India (‘ICAI’) and deemed to be

Standalone
Financial
Statements
2. provide reasonable assurance that transactions Inherent Limitations of Internal Financial

are recorded as necessary to permit preparation of Controls with reference to Financial Statements
financial statements in accordance with generally Because of the inherent limitations of internal financial
accepted accounting principles, and that receipts and controls with reference to financial statements, including the
expenditures of the Company are being made only in possibility of collusion or improper management override of
accordance with authorisations of management and controls, material misstatements due to error or fraud may
directors of the Company; and occur and not be detected. Also, projections of any evaluation
of the internal financial controls with reference to standalone
3. provide reasonable assurance regarding prevention or financial statements to future periods are subject to the risk
timely detection of unauthorised acquisition, use, or that the internal financial control with reference to financial
disposition of the Company’s assets that could have a statements may become inadequate because of changes in
material effect on the financial statements. conditions, or that the degree of compliance with the policies
or procedures may deteriorate.

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Partner Partner
May 19, 2023 May 19, 2023

Kochi Kochi

Balance Sheet
as at March 31, 2023
(` in millions, except for share data and unless otherwise stated)

As at As at
Particulars Notes
March 31, 2023 March 31, 2022
I. ASSETS
1 Financial assets
a) Cash and cash equivalents 5 64,288.01 91,785.15
b) Bank Balance other than (a) above 5 323.95 643.98
c) Derivative financial instruments 6 - 605.01
d) Receivables 7
(I) Trade receivables 16.06 21.44
(II) Other receivables - -
e) Loans 8 642,648.80 593,842.34
f) Investments 9 13,168.59 13,204.83
g) Other financial assets 10 1,336.19 1,224.98
2 Non-financial Assets
a) Deferred tax assets (Net) 32 401.54 485.45
b) Property, Plant and Equipment 11 2,682.10 2,636.92
c) Capital work-in-progress 11 674.27 456.48
d) Other intangible assets 12 35.59 37.36
e) Other non-financial assets 13 623.04 602.94
Total Assets 726,198.14 705,546.88
II. LIABILITIES AND EQUITY
LIABILITIES
1 Financial Liabilities
a) Derivative financial instruments 6 1,892.41 4,797.97
b) Payables 14
(I) Trade payables
(i) total outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises and 1,257.70 1,143.66
small enterprises
(II) Other payables

(ii) total outstanding dues of creditors other than micro enterprises and 701.68 367.92
small enterprises
c) Debt securities 15 137,383.63 124,978.88

d) Borrowings (other than debt securities) 16 358,992.41 371,709.88
e) Subordinated liabilities 17 967.03 1,423.74
f) Other financial liabilities 18 9,564.12 11,782.01
2 Non-financial Liabilities
a) Current tax liabilities (net) 789.38 1,353.28
b) Provisions 19 3,515.56 3,598.35
c) Other non-financial liabilities 20 514.94 945.47
EQUITY
a) Equity share capital 21 4,014.48 4,013.45
b) Other equity 22 206,604.80 179,432.27
Total Liabilities and Equity 726,198.14 705,546.88
Notes on accounts form part of standalone financial statements
As per our report of even date attached

For Elias George & Co. For Babu A. Kallivayalil & Co. For and on behalf of the Board of Directors
(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-
Ranjit Mathews P Babu Abraham Kallivayalil George Jacob Muthoot George Alexander Muthoot
Partner Partner Chairman & Whole-time Director Managing Director
Chartered Accountants Chartered Accountants DIN: 00018235 DIN: 00016787
Membership No. 205377 Membership No. 026973
sd/- sd/-
Oommen K. Mammen Rajesh A
Chief Financial Officer Company Secretary
Date: May 19, 2023 Date: May 19, 2023

Standalone
Financial
Statements
Statement of Profit and Loss

for the year ended March 31, 2023

Year ended Year ended
Particulars Notes
March 31, 2023 March 31, 2022
Revenue from operations
(i) Interest income 23 103,686.11 109,560.28
(ii) Dividend income 23.77 7.88
(iii) Net gain on fair value changes 24 672.70 473.93
(iv) Sale of services 25 90.70 139.69
(v) Service charges 675.21 641.46
(I) Total Revenue from operations 105,148.49 110,823.24
(II) Other Income 26 288.99 160.69
(III) Total Income (I + II) 105,437.48 110,983.93
Expenses
(i) Finance costs 27 36,991.40 38,357.62
(ii) Impairment on financial instruments 28 605.27 1,270.47
(iii) Employee benefits expenses 29 11,994.41 10,302.16
(iv) Depreciation, amortization and impairment 30 583.14 539.14
(v) Other expenses 31 8,599.00 7,421.00
(IV) Total Expenses (IV) 58,773.22 57,890.39
(V) Profit before tax (III- IV) 46,664.26 53,093.54
(VI) Tax Expense: 32
(1) Current tax 12,069.87 13,586.13
(2) Deferred tax (58.47) (35.63)
(3) Taxes relating to prior years (82.45) -
(VII) Profit for the year (V- VI) 34,735.31 39,543.04
(VIII) Other Comprehensive Income
A) (i) Items that will not be reclassified to profit or loss
- Remeasurement of defined benefit plans 48.95 23.86

- Fair value changes on equity instruments through other comprehensive (84.82) 61.51
income
- Changes in value of forward element of forward contract 405.35 (670.21)
(ii) Income tax relating to items that will not be reclassified to profit or loss (92.99) 147.19
Subtotal (A) 276.49 (437.65)
B) (i) Items that will be reclassified to profit or loss
- Effective portion of gain/(loss) on hedging instruments in cash flow 245.23 (40.34)
hedges
(ii) Income tax relating to items that will be reclassified to profit or loss (61.72) 10.15
Subtotal (B) 183.51 (30.19)
Other Comprehensive Income (A + B) (VIII) 460.00 (467.84)
(IX) Total comprehensive income for the year (VII+VIII) 35,195.31 39,075.20
(X) Earnings per equity share 33
(Face value of ₹10/- each)
Basic (₹) 86.54 98.55
Diluted (₹) 86.52 98.50
(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-
sd/- sd/-
Date: May 19, 2023 Date: May 19, 2023

174
Statement of changes in Equity
for the year ended March 31, 2023 (I in millions, except for share data and unless otherwise stated)
a. Equity Share Capital
Particulars Number Amount

Equity shares of ₹10/- each issued, subscribed and fully paid
As at April 01, 2021 401,195,856 4,011.96

As at March 31, 2022 401,345,266 4,013.45
Shares issued in exercise of Employee Stock Options during the year 149,410 1.49
As at March 31, 2023 401,448,231 4,014.48

b. Other Equity
Reserves and Surplus Other Comprehensive Income
Other Items
Debenture Equity of Other
Effective
Particulars Redemption Share instruments Cost of Comprehensive Total
Statutory Securities General Retained portion of
Reserve Option through Other Hedging Income
Reserve Premium Reserve Earnings Cash Flow
(Refer Note Outstanding Comprehensive Reserve (Remeasurement
Hedges
22.1(c)) Income of defined benefit
plans)
Balance as at April 01, 2021 33,520.29 15,016.44 35,123.97 2,676.33 105.00 61,749.05 473.04 (173.95) (156.74) 43.55 148,376.97
Interim Dividend for 2020-21 - - - - - (8,023.92) - - - - (8,023.92)
Tax on dividend - - - - - - - - - - -
Transfer to/from retained earnings 7,908.62 - - - - (7,908.62) - - - - -
Profit for the year after income tax - - - - - 39,543.04 - - - - 39,543.04
Share based payment expenses - - - - (1.98) - - - - - (1.98)
Share option exercised during - 47.26 - - (41.28) - - - - - 5.98
the year
Other Comprehensive Income - - - - - - 61.52 (40.34) (670.21) 23.86 (625.17)
(OCI) for the
year before income tax
Balance as at March 31, 2022 41,428.90 15,063.70 35,123.97 2,676.33 61.74 85,359.55 519.08 (204.14) (658.28) 61.40 179,432.27
Income Tax on OCI - - - - - - (15.48) 10.15 168.68 (6.01) 157.35
Interim Dividend for 2021-22 - - - - - (8,026.91) - - - - (8,026.91)

Transfer to/ from retained earnings 6,947.06 - - - - (6,947.06) - - - - -
Profit for the year after income tax - - - - - 34,735.31 - - - - 34,735.31
Transfer from ESOP reserves - - - - (9.16) 9.16 - - - - -
Financial
(I in millions, except for share data and unless otherwise stated)

Standalone
Statements
Reserves and Surplus Other Comprehensive Income

Other Items
Debenture Equity of Other
Effective
Particulars Redemption Share instruments Cost of Comprehensive Total
Statutory Securities General Retained portion of
Reserve Option through Other Hedging Income
Reserve Premium Reserve Earnings Cash Flow
(Refer Note Outstanding Comprehensive Reserve (Remeasurement
Hedges
22.1(c)) Income of defined benefit
plans)
Share based payment expenses - - - - - - - - - - -
Share option exercised during - 36.59 - - (32.46) - - - - - 4.13
the year
Other Comprehensive Income (OCI) - - - - - - (84.82) 245.23 405.35 48.95 614.71
for the year before income tax
Balance as at March 31, 2023 48,375.96 15,100.29 35,123.97 2,676.33 20.12 105,130.05 455.61 (20.63) (354.95) 98.03 206,604.80
Income Tax on OCI - - - - - - 21.35 (61.72) (102.02) (12.32) (154.71)

(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-


sd/- sd/-

Date: May 19, 2023 Date: May 19, 2023

175
Cash Flow Statement

Particulars
March 31, 2023 March 31, 2022
A. Cash flow from Operating activities
Profit before tax 46,664.26 53,093.54
Adjustments to reconcile profit before tax to net cash flows:
Depreciation, amortisation and impairment 583.14 539.14
Impairment on financial instruments 605.27 1,270.47
Finance cost 36,991.40 38,357.62
(Profit)/Loss on sale of mutual funds (672.69) (445.03)
(Profit)/Loss on sale of investments at amortised cost - (28.90)
(Profit)/Loss on sale of Property, plant and equipment (9.74) (14.70)
Provision for Gratuity 116.14 152.12
Provision for Compensated absences 29.38 (32.34)
Provision for Employee benefit expense - Share based payments for employees - (1.98)
Provision for refund of interest on interest - 4.55
Interest income on investments (2,139.31) (1,495.96)
Dividend income (23.77) (7.88)
Unrealised gain on investment (0.01) -
Operating Profit Before Working Capital Changes 82,144.07 91,390.65
Adjustments for:
(Increase)/Decrease in Trade receivables 5.38 13.28
(Increase)/Decrease in Bank balances other than cash and cash equivalents 319.47 87.24
(Increase)/Decrease in Loans (49,414.35) (53,854.40)
(Increase)/Decrease in Other financial assets (128.59) 37.74
(Increase)/Decrease in Other non-financial assets 74.37 95.14
Increase/(Decrease) in Other financial liabilities 206.17 (88.22)
Increase/(Decrease) in Other non-financial liabilities (430.53) 513.78
Increase/(Decrease) in Trade payables 447.82 (505.53)
Increase/(Decrease) in Provisions (176.76) (147.76)
Cash generated from/ (used in) operations 33,047.05 37,541.92
Finance cost paid (39,500.62) (35,436.02)
Income tax paid (12,563.65) (13,521.26)
Net cash from / (used in) operating activities (19,017.22) (11,415.36)
B. Cash flow from Investing activities
Purchase of Property, plant and equipment and intangible assets (Including Capital work in (941.46) (735.73)
progress)
Proceeds from sale of Property, plant and equipment 12.39 22.81
(Increase)/Decrease in Investment in mutual funds (Net) 672.69 445.03
(Increase)/Decrease in Investments at amortised cost 10.00 3,400.63
Investments in unquoted equity shares - -
Investment in Equity shares of subsidiary (50.00) (480.00)
Investment in Preference shares of subsidiary - (145.96)
Investments in quoted equity shares - -
Interest received on investments 2,148.13 1,561.66
Dividend income 23.77 7.88
Net cash from / (used in) investing activities 1,875.52 4,076.32

Standalone
Financial
Statements
Cash Flow Statement


Particulars
March 31, 2023 March 31, 2022
C. Cash flow from Financing activities
Proceeds from issue of equity share capital 5.15 7.47
Increase / (Decrease) in Debt securities 12,309.88 (13,062.49)
Increase / (Decrease) in Borrowings (other than Debt securities) (14,184.65) 49,711.83
Increase / (Decrease) in Subordinated liabilities (459.47) (675.69)
Dividend paid (8,026.35) (8,023.92)
Net cash from / (used in) financing activities (10,355.44) 27,957.20
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) (27,497.14) 20,618.16
Cash and cash equivalents at April 01, 2022/ April 01, 2021 91,785.15 71,166.99
Cash and cash equivalents at March 31, 2023/ March 31, 2022 (Refer note 5.1) 64,288.01 91,785.15

(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-

sd/- sd/-

Date: May 19, 2023 Date: May 19, 2023

Notes
forming part of Financial Statements
1. Corporate Information 2.2. Basis of measurement

Muthoot Finance Limited (“the Company”) was The financial statements have been prepared on a
incorporated as a private limited company on 14th March, historical cost basis, except for following assets and
1997 and was converted into a public limited company on liabilities which have been measured at fair value:
November 18, 2008. The Company was promoted by Late
Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, i)
fair value through other comprehensive income
Mr. George Jacob Muthoot and Mr. George Alexander (FVOCI) instruments,
Muthoot who collectively operated under the brand
name of “The Muthoot Group”. The Company obtained ii) derivative financial instruments,
permission from the Reserve Bank of India for carrying
on the business of Non-Banking Financial Institutions iii) other financial assets held for trading,
on 13-11-2001 vide Regn No. N 16.00167. The Company
is presently classified as Systemically Important Non- iv) financial assets and liabilities designated at fair
Deposit Taking NBFC (NBFC-ND-SI). The Reserve Bank value through profit or loss (FVTPL)
of India vide its press release 2022-2023/975 dated
September 30, 2022, has classified Muthoot Finance 2.3 The financial statements of the Company are presented
Limited as Upper Layer NBFC as per their “Scale based as per Schedule III (Division III) of the Companies Act,
regulatory framework”. The Registered Office of 2013 applicable to NBFCs, as notified by the Ministry of
the Company is at Second Floor, Muthoot Chambers, Corporate Affairs (MCA). Financial assets and financial
Opposite Saritha Theatre Complex, Banerji Road, Kochi liabilities are generally reported on a gross basis except
- 682 018, India. when, there is an unconditional legally enforceable
right to offset the recognised amounts without being
The Company made an Initial Public Offer of 51,500,000 contingent on a future event and the parties intend to
Equity Shares of the face value ₹10/- each at a price of settle on a net basis.
₹175/- raising ₹9,012.50 millions during the month of
April 2011. The equity shares of the Company are listed
2.4 Functional and presentation currency
on National Stock Exchange of India Limited and BSE
Limited from May 6, 2011. The financial statements are presented in Indian Rupees
(INR) which is also its functional currency and all
values are rounded to the nearest million, except when
2. Basis of preparation and presentation otherwise indicated.
2.1 Statement of Compliance

The financial statements of the Company have been 2.5 New Accounting Standards that are issued but
prepared in accordance with Indian Accounting not effective
Standards (Ind AS) notified under Section 133 of the There are no standards that are issued but not yet
Companies Act, 2013 read with the Companies (Indian effective on March 31, 2023.
Accounting Standards) Rules, 2015 (as amended from
time to time). These financial statements may require
3. Significant accounting policies
further adjustments, if any, necessitated by the guidelines
3.1. Revenue Recognition
/ clarifications / directions issued in the future by RBI,
3.1.1 Recognition of interest income
Ministry of Corporate Affairs, or other regulators, which
will be implemented as and when the same are issued The Company recognises Interest income by applying
and made applicable. the effective interest rate (EIR) to the gross carrying
amount of a financial asset except for purchased or
originated credit-impaired financial assets and other
credit-impaired financial assets.

Standalone
Financial
Statements
Notes
For purchased or originated credit-impaired financial Step 2: Identify performance obligations in the contract:
assets, the Company applies the credit-adjusted effective A performance obligation is a promise in a contract with
interest rate to the amortised cost of the financial asset a customer to transfer a good or service to the customer.
from initial recognition.
Step 3: Determine the transaction price: The transaction
For other credit-impaired financial assets, the Company price is the amount of consideration to which the
applies effective interest rate to the amortised cost of Company expects to be entitled in exchange for
the financial asset in subsequent reporting periods. transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties.
The effective interest rate on a financial asset is the
rate that exactly discounts estimated future cash Step 4: Allocate the transaction price to the performance
receipts through the expected life of the financial asset obligations in the contract: For a contract that has more
to the gross carrying amount of a financial asset. While than one performance obligation, the Company allocates
estimating future cash receipts, factors like expected the transaction price to each performance obligation in
behaviour and life cycle of the financial asset, probable an amount that depicts the amount of consideration to
fluctuation in collateral value etc. are considered which which the Company expects to be entitled in exchange
has an impact on the EIR. for satisfying each performance obligation.
While calculating the effective interest rate, the Company Step 5: Recognise revenue when (or as) the Company
includes all fees and points paid or received to and from satisfies a performance obligation
the borrowers that are an integral part of the effective
interest rate, transaction costs, and all other premiums Revenue from contract with customer for rendering
or discounts. services is recognised at a point in time when
performance obligation is satisfied.
Interest income on all trading assets and financial
assets required to be measured at FVTPL is recognised
3.1.3 Recognition of Dividend Income
using the contractual interest rate as net gain on fair
value changes. Dividend income (including from FVOCI investments)
is recognised when the Company’s right to receive the
payment is established. This is established when it is
3.1.2 Recognition of revenue from sale of goods or services probable that the economic benefits associated with the
Revenue (other than for Financial Instruments within dividend will flow to the entity and the amount of the
the scope of Ind AS 109) is measured at an amount that dividend can be measured reliably.
reflects the considerations, to which an entity expects
to be entitled in exchange for transferring goods or
3.2. Financial instruments
services to customer, excluding amounts collected on
behalf of third parties. A. Financial Assets
The Company recognises revenue from contracts with 3.2.1. Initial recognition and measurement
customers based on a five-step model as set out in Ind All financial assets are recognised initially at fair value
AS 115: when the Company becomes party to the contractual
provisions of the financial asset. In case of financial
Step 1: Identify contract(s) with a customer: A contract assets which are not recorded at fair value through profit
is defined as an agreement between two or more parties or loss, transaction costs that are directly attributable
that creates enforceable rights and obligations and sets to the acquisition or issue of the financial assets, are
out the criteria for every contract that must be met. adjusted to the fair value on initial recognition.

Notes
3.2.2. Subsequent measurement B. Financial liabilities

The Company classifies its financial assets into various
3.2.5. Initial recognition and measurement
measurement categories. The classification depends
on the contractual terms of the financial assets’ cash All financial liabilities are recognized initially at
flows and the Company’s business model for managing fair value when the company become party to the
financial assets. contractual provisions of the financial liability. In case
of financial liability which are not recorded at fair value
through profit or loss, transaction costs that are directly
a. Financial assets measured at amortised cost attributable to the acquisition or issue of the financial
A financial asset is measured at amortised cost if it liabilities, are adjusted to the fair value on initial
is held within a business model whose objective is recognition. The company’s financial liabilities include
to hold the asset in order to collect contractual cash trade and other payables, non-convertible debentures
flows and the contractual terms of the Financial loans and borrowings including bank overdrafts.
Asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the
3.2.6. Subsequent Measurement
principal amount outstanding.
Financial liabilities other than financial liabilities at fair
value through profit or loss which includes derivative
b. Financial assets measured at fair value through financial instruments are subsequently carried at
other comprehensive income (FVOCI) amortised cost using the effective interest method.
A financial asset is measured at FVOCI if it is Subsequent measurement of derivative financial
held within a business model whose objective is instruments are at fair value as detailed under Note 3.7
achieved by both collecting contractual cash flows ‘Derivative Financial Instruments’
and selling financial assets and contractual terms
of financial asset give rise on specified dates to
3.3. Derecognition of financial assets and liabilities
cash flows that are solely payments of principal and
interest on the principal amount outstanding. 3.3.1. Financial Asset
The Company derecognizes a financial asset when
c. Financial assets measured at fair value through the contractual cash flows from the asset expire or it
profit or loss (FVTPL) transfers its rights to receive contractual cash flows
A financial asset which is not classified in any of the from the financial asset in a transaction in which
above categories are measured at FVTPL. substantially all the risks and rewards of ownership
are transferred. Any rights and obligations created or
retained in the transfer of such financial assets by the
3.2.3. Investments in Subsidiaries, Associates and Joint Company is recognized as a separate asset or liability.
Ventures
The Company has accounted for its investments in
3.3.2. Financial Liability
Subsidiaries, Associates and Joint Ventures at cost less
impairment loss, if any. A financial liability is derecognised when the obligation
under the liability is discharged, cancelled or expires.
Where an existing financial liability is replaced
3.2.4. Other Equity Investments by another from the same lender on substantially
All other equity investments are measured at fair value, different terms, or the terms of an existing liability are
with value changes recognised in Statement of Profit and substantially modified, such an exchange or modification
Loss, except for those equity investments for which the is treated as de-recognition of the original liability and
Company has elected to present the changes in fair value the recognition of a new liability. The difference between
through other comprehensive income (FVOCI). the carrying value of the original financial liability and

Standalone
Financial
Statements
Notes
the consideration paid is recognised in the Statement of The Company performs an assessment, at the end of each
profit and loss. reporting period, of whether a financial assets credit
risk has increased significantly since initial recognition.
When making the assessment, the change in the risk of a
3.4. Offsetting
default occurring over the expected life of the financial
Financial assets and financial liabilities are generally instrument is used instead of the change in the amount
reported gross in the balance sheet. Financial assets and of expected credit losses.
liabilities are offset and the net amount is presented in
the balance sheet when the Company has a legal right to Based on the above process, the Company categorises its
offset the amounts and intends to settle on a net basis or loans into three stages as described below:
to realise the asset and settle the liability simultaneously
in all the following circumstances:
For non-impaired financial assets
a. The normal course of business • Stage 1 is comprised of all non-impaired financial
b. The event of default assets which have not experienced a significant
increase in credit risk since initial recognition. A
c. The event of insolvency or bankruptcy of the
12-month ECL provision is made for stage 1 financial
Company and/or its counterparties
assets. In assessing whether credit risk has increased
significantly, the Company compares the risk of a
3.5. Impairment of financial assets default occurring on the financial asset as at the
In accordance with Ind AS 109, the Company uses reporting date with the risk of a default occurring on
‘Expected Credit Loss’ model (ECL), for evaluating the financial asset as at the date of initial recognition.
impairment of financial assets other than those • Stage 2 is comprised of all non-impaired financial
measured at Fair value through profit or loss. assets which have experienced a significant increase
in credit risk since initial recognition. The Company
3.5.1. Overview of the Expected Credit Loss (ECL) model recognises lifetime ECL for stage 2 financial assets. In
subsequent reporting periods, if the credit risk of the
Expected Credit Loss, at each reporting date, is measured
financial instrument improves such that there is no
through a loss allowance for a financial asset:
longer a significant increase in credit risk since initial
recognition, then entities shall revert to recognizing
• At an amount equal to the lifetime expected credit
12 months ECL provision.
losses if the credit risk on that financial instrument
has increased significantly since initial recognition.
For impaired financial assets:
• At an amount equal to 12-month expected credit Financial assets are classified as Stage 3 when there
losses, if the credit risk on a financial instrument has is objective evidence of impairment as a result of one
not increased significantly since initial recognition. or more loss events that have occurred after initial
Lifetime expected credit losses means expected credit recognition with a negative impact on the estimated
losses that result from all possible default events over future cash flows of a loan or a portfolio of loans.
the expected life of a financial asset. The Company recognises lifetime ECL for impaired
financial assets.
12-month expected credit losses means the portion of
Lifetime ECL that represent the ECLs that result from
default events on financial assets that are possible
within the 12 months after the reporting date.

Notes
3.5.2. Estimation of Expected Credit Loss To mitigate its credit risks on financial assets, the
The mechanics of the ECL calculations are outlined Company seeks to use collateral, where possible. The
below and the key elements are as follows: collateral comes in various forms, such as cash, securities,
letters of credit/guarantees, vehicles, etc. However, the
Probability of Default (PD) - The Probability of Default
fair value of collateral affects the calculation of ECL.
is an estimate of the likelihood of default over a given The collateral is majorly the property for which the
time horizon. loan is given. The fair value of the same is based on data
provided by third party or management judgements.

The Company uses historical information where
available to determine PD. Considering the different Loans are written off (either partially or in full) when
products and schemes, the Company has bifurcated its there is no realistic prospect of recovery. This is
loan portfolio into various pools. For certain pools where generally the case when the Company determines that
historical information is available, the PD is calculated the borrower does not have assets or sources of income
considering fresh slippage of past years. For those pools that could generate sufficient cash flows to repay the
where historical information is not available, the PD/ amounts subjected to write-offs. Any subsequent
default rates as stated by external reporting agencies recoveries against such loans are credited to the
is considered. Statement of Profit and Loss.
E xposure at Default (EAD) - The Exposure at Default

3.6. Determination of fair value of Financial
is an estimate of the exposure at a future default date, Instruments
considering expected changes in the exposure after the
The Company measures financial instruments, such as,
reporting date, including repayments of principal and
investments at fair value at each balance sheet date.
interest, whether scheduled by contract or otherwise,
expected drawdowns on committed facilities, and
Fair value is the price that would be received to sell
accrued interest from missed payments.
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
Loss Given Default (LGD) – The Loss Given Default is an

measurement date. The fair value measurement is based
estimate of the loss arising in the case where a default
on the presumption that the transaction to sell the asset
occurs at a given time. It is based on the difference
or transfer the liability takes place either:
between the contractual cash flows due and those that
the lender would expect to receive, including from the
i. In the principal market for the asset or liability, or
realisation of any collateral.
ii. In the absence of a principal market, in the most

Forward looking information advantageous market for the asset or liability
While estimating the expected credit losses, the Company
reviews macro-economic developments occurring in The principal or the most advantageous market must be
the economy and market it operates. On a periodic accessible by the Company.
basis, the Company analyses if there is any relationship
between key economic trends like GDP, unemployment The fair value of an asset or a liability is measured using
rates, benchmark rates set by the Reserve Bank of India, the assumptions that market participants would use
inflation etc. with the estimate of PD, LGD determined when pricing the asset or liability, assuming that market
by the Company based on its internal data. While the participants act in their economic best interest.
internal estimates of PD, LGD rates by the Company may
not be always reflective of such relationships, temporary A fair value measurement of a non-financial asset takes
overlays, if any, are embedded in the methodology to into account a market participant’s ability to generate
reflect such macro-economic trends reasonably. economic benefits by using the asset in its highest and

Standalone
Financial
Statements
Notes
best use or by selling it to another market participant 3.7. Derivative financial instruments
that would use the asset in its highest and best use. The Company enters into derivative financial
instruments such as foreign exchange forward contracts

The Company uses valuation techniques that are and cross currency swaps to manage its exposure to
appropriate in the circumstances and for which sufficient foreign exchange rate risk and interest rate swaps to
data are available to measure fair value, maximising the manage its interest rate risk.
use of relevant observable inputs and minimising the use
of unobservable inputs. Derivatives are initially recognised at fair value on the
date when a derivative contract is entered into and are
The financial instruments are classified based on a subsequently remeasured to their fair value at each
hierarchy of valuation techniques, as summarised below: balance sheet date and carried as assets when their fair
value is positive and as liabilities when their fair value
Level 1 financial instruments −Those where the inputs is negative. The resulting gain/loss is recognised in the
used in the valuation are unadjusted quoted prices from Statement of Profit and Loss immediately unless the
active markets for identical assets or liabilities that the derivative is designated and is effective as a hedging
Company has access to at the measurement date. The instrument, in which event the timing of the recognition
Company considers markets as active only if there are in the Statement of Profit and Loss depends on the
sufficient trading activities with regards to the volume nature of the hedge relationship. The Company has
and liquidity of the identical assets or liabilities and designated the derivative financial instruments as cash
when there are binding and exercisable price quotes flow hedges of recognised liabilities and unrecognised
available on the balance sheet date. firm commitments.
Level 2 financial instruments−Those where the inputs

that are used for valuation and are significant, are Hedge accounting
derived from directly or indirectly observable market In order to manage particular risks, the Company
data available over the entire period of the instrument’s applies hedge accounting for transactions that meet
life. Such inputs include quoted prices for similar assets specific criteria.
or liabilities in active markets, quoted prices for identical
instruments in inactive markets and observable inputs At the inception of a hedge relationship, the Company
other than quoted prices such as interest rates and formally designates and documents the hedge
yield curves, implied volatilities, and credit spreads. In relationship and the risk management objective and
addition, adjustments may be required for the condition strategy for undertaking the hedge. The company enters
or location of the asset or the extent to which it relates into derivative financial instruments that have critical
to items that are comparable to the valued instrument. terms aligned with the hedged item and in accordance
However, if such adjustments are based on unobservable with the Risk management policy of the company, the
inputs which are significant to the entire measurement, hedging relationship is extended to the entire term of
the Company will classify the instruments as Level 3. the hedged item. The hedges are expected to be highly
effective if the hedging instrument is offsetting changes
Level 3 financial instruments −Those that include one in fair value or cash flows of the hedged item attributable
or more unobservable input that is significant to the to the hedged risk. The assessment of hedge effectiveness
measurement as whole. is carried out at inception and on an ongoing basis
to determine that the hedging relationship has been
effective throughout the financial reporting periods for
which they were designated.

Notes
Cash Flow Hedges and non-refundable purchase taxes, after deducting

A cash flow hedge is a hedge of the exposure to variability trade discounts and rebates, any directly attributable
in cash flows that is attributable to a particular risk cost of bringing the item to its working condition for its
associated with a recognised asset or liability (such as intended use and estimated costs of dismantling and
all or some future interest payments on variable rate removing the item and restoring the site on which it
debt) or a highly probable forecast transaction and could is located.
affect profit and loss. For designated and qualifying cash
flow hedges, the effective portion of the cumulative gain Advances paid towards the acquisition of fixed assets,
or loss on the hedging instrument is initially recognised outstanding at each reporting date are shown under
directly in Other Comprehensive Income (OCI) within other non-financial assets. The cost of property, plant
equity (cash flow hedge reserve). The ineffective and equipment not ready for its intended use at each
portion of the gain or loss on the hedging instrument is reporting date are disclosed as capital work-in-progress.
recognised immediately in the Statement of Profit and
Loss. When the hedged cash flow affects the Statement of Subsequent expenditure related to the asset are added
Profit and Loss, the effective portion of the gain or loss on to its carrying amount or recognised as a separate asset
the hedging instrument is recorded in the corresponding only if it increases the future benefits of the existing
income or expense line of the Statement of Profit and Loss. asset, beyond its previously assessed standards of
When a hedging instrument expires, is sold, terminated, performance and cost can be measured reliably. Other
exercised, or when a hedge no longer meets the criteria repairs and maintenance costs are expensed off as and
for hedge accounting, any cumulative gain or loss that when incurred.
has been recognised in OCI at that time remains in OCI
and is recognised when the hedged forecast transaction 3.9.1. Depreciation
is ultimately recognised in the Statement of Profit and
Depreciation on Property, Plant and Equipment is
Loss. When a forecast transaction is no longer expected
calculated using written down value method to write
to occur, the cumulative gain or loss that was reported in
down the cost of property, plant and equipment to their
OCI is immediately transferred to the Statement of Profit
residual values over their estimated useful lives which
and Loss.
is in line with the estimated useful life as specified in
Schedule II of the Companies Act, 2013.
3.8. Cash and cash equivalents
Cash and cash equivalents comprise of cash at banks and The estimated useful lives are as follows:
on hand and short-term deposits with a maturity of three Particulars Useful life
months or less, which are subject to an insignificant risk Furniture and fixture 10 years
of changes in value. Office equipment 5 years
Server and networking 6 years
For the purpose of the statement of cash flows, cash and Computer 3 years
cash equivalents consist of cash and short- term deposits, Building 30 years
as defined above, net of outstanding bank overdrafts Vehicles 8 years
if any, as they are considered as an integral part of the Wind Mill 22 years
Company’s cash management.

The residual values, useful lives and methods of
3.9. Property, plant and equipment depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
Property, plant and equipment are measured at cost less
prospectively, if appropriate. Changes in the expected
accumulated depreciation and accumulated impairment,
useful life are accounted for by changing the amortisation
if any. Cost of an item of property, plant and equipment
period or methodology, as appropriate, and treated as
comprises its purchase price, including import duties
changes in accounting estimates.

Standalone
Financial
Statements
Notes
Property, plant and equipment is derecognised on 3.11. Impairment of non–financial assets: Property,
disposal or when no future economic benefits are Plant and Equipment and Intangible Assets
expected from its use. Any gain or loss arising on The Company assesses, at each reporting date, whether
derecognition of the asset (calculated as the difference there is any indication that any Property, Plant and
between the net disposal proceeds and the carrying Equipment and Intangible Assets or group of assets
amount of the asset) is recognised in other income / called Cash Generating Units (CGU) may be impaired. If
expense in the Statement of Profit and Loss in the year any such indication exists, or when annual impairment
the asset is derecognised. The date of disposal of an testing for an asset is required, the Company estimates
item of property, plant and equipment is the date the the asset’s recoverable amount to determine the extent
recipient obtains control of that item in accordance with of impairment, if any.
the requirements for determining when a performance
obligation is satisfied in Ind AS 115. An asset’s recoverable amount is the higher of an
asset’s or CGU’s fair value less costs of disposal and its
3.10.Intangible assets value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate cash
An intangible asset is recognised only when its cost can
inflows that are largely independent of those from other
be measured reliably and it is probable that the expected
assets or groups of assets. When the carrying amount
future economic benefits that are attributable to it will
of an asset or CGU exceeds its recoverable amount, the
flow to the Company.
asset is considered impaired and is written down to its
recoverable amount.
Intangible assets acquired separately are measured on
initial recognition at cost. The cost of an intangible asset
In assessing value in use, the estimated future cash
comprises its purchase price including import duties and
flows are discounted to their present value using a
non-refundable purchase taxes, after deducting trade
pre-tax discount rate that reflects current market
discounts and rebates, any directly attributable cost of
assessments of the time value of money and the risks
bringing the item to its working condition for its intended
specific to the asset. In determining fair value less costs
use. Following initial recognition, intangible assets are
of disposal, recent market transactions are taken into
carried at cost less any accumulated amortisation and
account. If no such transactions can be identified, an
any accumulated impairment losses.
appropriate valuation model is used. These calculations
are corroborated by valuation multiples, quoted share
Subsequent expenditure related to the asset is added to
prices for publicly traded companies or other available
its carrying amount or recognised as a separate asset
fair value indicators.
only if it increases the future benefits of the existing
asset, beyond its previously assessed standards of
An assessment is made at each reporting date to
performance and cost can be measured reliably.
determine whether there is an indication that previously
recognised impairment losses no longer exist or have
Intangible assets comprising of software is amortised on
decreased. If such indication exists, the Company
straight line basis over a period of 5 years, unless it has a
estimates the asset’s or CGU’s recoverable amount. A
shorter useful life.
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
Gains or losses from derecognition of intangible assets
determine the asset’s recoverable amount since the last
are measured as the difference between the net disposal
impairment loss was recognised. The reversal is limited
proceeds and the carrying amount of the asset are
so that the carrying amount of the asset does not exceed
recognised in the Statement of Profit and Loss when the
its recoverable amount, nor exceed the carrying amount
asset is derecognised.
that would have been determined, net of depreciation,

Notes
had no impairment loss been recognised for the asset in Mutual Life Insurance Limited and/or ICICI Prudential
prior years. Such reversal is recognised in the Statement Life Insurance Company Limited.
of Profit and Loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a The obligation is measured at the present value of the
revaluation increase. estimated future cash flows. The discount rates used for
determining the present value of the obligation under
defined benefit plan are based on the market yields on
3.12. Employee Benefits Expenses
Government Securities as at the Balance Sheet date.
3.12.1. Short Term Employee Benefits
An actuarial valuation involves making various
The undiscounted amount of short term employee
assumptions that may differ from actual developments
benefits expected to be paid in exchange for the
in the future. These include the determination of the
services rendered by employees are recognised as an
discount rate, future salary increases and mortality rates.
expense during the period when the employees render
Due to the complexities involved in the valuation and its
the services
long-term nature, these liabilities are highly sensitive
to changes in these assumptions. All assumptions are
3.12.2. Post-Employment Benefits reviewed at each reporting date.
A. Defined contribution schemes Re-measurement, comprising of actuarial gains and

All eligible employees of the company are entitled to losses (excluding amounts included in net interest
receive benefits under the provident fund, a defined on the net defined benefit liability), are recognized
contribution plan in which both the employee and the immediately in the balance sheet with a corresponding
company contribute monthly at a stipulated percentage debit or credit to retained earnings through Other
of the covered employee’s salary. Contributions are made Comprehensive Income in the period in which they occur.
to Employees Provident Fund Organization in respect of Re-measurements are not reclassified to profit and loss
Provident Fund, Pension Fund and Employees Deposit in subsequent periods.
Linked Insurance Scheme at the prescribed rates and
are charged to Statement of Profit and Loss at actuals.
3.12.3. Other Long term employee benefits
The company has no liability for future provident fund
benefits other than its annual contribution. Accumulated compensated absences
The Company provides for liability of accumulated
B. Defined Benefit schemes compensated absences for eligible employees on the
basis of an independent actuarial valuation carried out
Gratuity at the end of the year, using the projected unit credit
The Company provides for gratuity covering eligible method. Actuarial gains and losses are recognised in
employees under which a lumpsum payment is paid to the Statement of Profit and Loss for the period in which
vested employees at retirement, death, incapacitation they occur.
or termination of employment, of an amount reckoned
on the respective employee’s salary and his tenor of
3.12.4. Employee share based payments
employment with the Company. The Company accounts
for its liability for future gratuity benefits based on Stock options granted to the employees under the stock
actuarial valuation determined at each Balance Sheet option scheme established are accounted as per the
date by an Independent Actuary using Projected Unit accounting treatment prescribed by the SEBI (Share
Credit Method. The Company makes annual contribution Based Employee Benefits) Regulations, 2014 issued by
to a Gratuity Fund administered by Trustees and Securities and Exchange Board of India.
separate schemes managed by Kotak Mahindra Old

Standalone
Financial
Statements
Notes
The Company follows the fair value method of accounting Current income tax relating to items recognised outside
for the options and accordingly, the excess of market profit or loss is recognised outside profit or loss i.e.,
value of the stock options as on the date of grant over either in other comprehensive income or in equity.
the fair value of the options is recognised as deferred Current tax items are recognised in correlation to the
employee compensation cost and is charged to the underlying transaction either in other comprehensive
Statement of Profit and Loss on graded vesting basis income or directly in equity. Management periodically
over the vesting period of the options. evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are
The dilutive effect of outstanding options is reflected as subject to interpretation and establishes provisions
additional share dilution in the computation of diluted where appropriate.
earnings per share.
3.14.2 Deferred tax
3.13. Provisions Deferred tax is provided on temporary differences at
Provisions are recognised when the enterprise has a the reporting date between the tax bases of assets and
present obligation (legal or constructive) as a result of liabilities used in the computation of taxable profit and
past events, and it is probable that an outflow of resources their carrying amounts in the financial statements for
embodying economic benefits will be required to settle financial reporting purposes.
the obligation, and a reliable estimate can be made of the
amount of the obligation. Deferred tax liabilities are recognised for all taxable
temporary differences, except:
When the effect of the time value of money is material,
the enterprise determines the level of provision by i. Where the deferred tax liability arises from the
discounting the expected cash flows at a pre-tax rate initial recognition of goodwill or of an asset or
reflecting the current rates specific to the liability. The liability in a transaction that is not a business
expense relating to any provision is presented in the combination and, at the time of the transaction,
Statement of Profit and Loss net of any reimbursement. affects neither the accounting profit nor taxable
profit or loss
3.14. Taxes
ii. In respect of taxable temporary differences
Income tax expense represents the sum of current tax associated with investments in subsidiaries,
and deferred tax. where the timing of the reversal of the temporary
differences can be controlled and it is probable that
3.14.1 Current Tax the temporary differences will not reverse in the
foreseeable future
Current tax is the amount of income taxes payable in
respect of taxable profit for a period. Taxable profit differs
Deferred tax assets are recognised for all deductible
from ‘profit before tax’ as reported in the Statement of
temporary differences, the carry forward of unused tax
Profit and Loss because of items of income or expense
credits and any unused tax losses. Deferred tax assets are
that are taxable or deductible in other years and items
recognised to the extent that it is probable that taxable
that are never taxable or deductible in accordance with
profit will be available against which the deductible
applicable tax laws.
temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilised, except:
The tax rates and tax laws used to compute the amount
are those that are enacted, or substantively enacted, by
i. When the deferred tax asset relating to the
the end of reporting date in India where the Company
deductible temporary difference arises from
operates and generates taxable income.
the initial recognition of an asset or liability in a
transaction that is not a business combination and,

Notes
at the time of the transaction, affects neither the will be required to settle the obligation. A contingent
accounting profit nor taxable profit or loss liability also arises in extremely rare cases where there
is a liability that cannot be recognized because it cannot
ii. In respect of deductible temporary differences be measured reliably. The Company does not recognize
associated with investments in subsidiaries, a contingent liability but discloses its existence in the
associates and interests in joint ventures, deferred financial statements.
tax assets are recognised only to the extent that
it is probable that the temporary differences will A contingent asset is a possible asset that arises from
reverse in the foreseeable future and taxable profit past events and whose existence will be confirmed only
will be available against which the temporary by the occurrence or non-occurrence of one or more
differences can be utilised uncertain future events not wholly within the control
of the entity. The company does not have any contingent
The carrying amount of deferred tax assets is reviewed assets in the financial statements.
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
3.16. Earnings Per Share
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re- The Company reports basic and diluted earnings per
assessed at each reporting date and are recognised to the share in accordance with Ind AS 33 on Earnings per share
extent that it has become probable that future taxable (EPS). Basic EPS is calculated by dividing the net profit
profits will allow the deferred tax asset to be recovered. or loss for the year attributable to equity shareholders
(after deducting preference dividend and attributable
Deferred tax assets and liabilities are measured at the taxes) by the weighted average number of equity shares
tax rates that are expected to apply in the year when outstanding during the year.
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or For calculating diluted earnings per share, the net profit
substantively enacted at the reporting date. or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding
Deferred tax relating to items recognised outside profit during the year are adjusted for the effects of all dilutive
or loss is recognised outside profit or loss ie., either in potential equity shares. Dilutive potential equity
other comprehensive income or in equity. Deferred tax shares are deemed converted as of the beginning of
items are recognised in correlation to the underlying the period, unless they have been issued at a later date.
transaction either in other comprehensive income or In computing the dilutive earnings per share, only
directly in equity. potential equity shares that are dilutive and that either
reduces the earnings per share or increases loss per
Deferred tax assets and deferred tax liabilities are offset share are included.
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred 3.17. Foreign currency transactions
taxes relate to the same taxable entity and the same
Transactions in foreign currencies are translated into
taxation authority.
the functional currency of the Company at the exchange
rates at the dates of the transactions or an average rate if
3.15. Contingent Liabilities and Assets the average rate approximates the actual rate at the date
A contingent liability is a possible obligation that arises of the transaction.
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more Monetary assets and liabilities denominated in foreign
uncertain future events beyond the control of the currencies are translated into the functional currency at
Company or a present obligation that is not recognized the exchange rate at the reporting date. Non-monetary
because it is not probable that an outflow of resources assets and liabilities that are measured at fair value in

Standalone
Financial
Statements
Notes
a foreign currency are translated into the functional Wherever the above exception permitted under Ind
currency at the exchange rate when the fair value was AS 116 is not applicable, the Company at the time of
determined. Non-monetary assets and liabilities that are initial recognition:
measured based on historical cost in a foreign currency
are translated at the exchange rate at the date of the • measures lease liability as present value of all
transaction. Exchange differences are recognised in the lease payments discounted using the Company’s
Statement of profit and loss. incremental cost of borrowing and directly
attributable costs. Subsequently, the lease liability
is increased by interest on lease liability, reduced
3.18. Cash-flow statement
by lease payments made and remeasured to reflect
Cash flows are reported using the indirect method, any reassessment or lease modifications specified
whereby profit before tax is adjusted for the effects of in Ind AS 116 ‘Leases’, or to reflect revised fixed
transactions of a non-cash nature and any deferrals or lease payments.
accruals of past or future cash receipts or payments. The
cash flows from regular revenue generating, investing • measures ‘Right-of-use assets’ as present value of
and financing activities of the Company are segregated. all lease payments discounted using the Company’s
incremental cost of borrowing and any initial direct
costs. Subsequently, ‘Right-of-use assets’ is measured
3.19. Leases using cost model i.e. at cost less any accumulated
Effective 01 April 2019, the Company had applied Ind AS depreciation (depreciated on straight line basis over
116 ‘Leases’ to all lease contracts existing on 01 April the lease period) and any accumulated impairment
2019 by adopting the modified retrospective approach. losses adjusted for any remeasurement of the lease
liability specified in Ind AS 116 ‘Leases’
The Company evaluates each contract or arrangement,
whether it qualifies as lease as defined under Ind AS 116. The Company as a lessor
A contract is, or contains, a lease if the contract conveys Leases under which the Company is a lessor are classified
the right to control the use of an identified asset. as finance or operating leases. Lease contracts where all
the risks and rewards are substantially transferred to
The Company as a lessee the lessee, the lease contracts are classified as finance
leases. All other leases are classified as operating leases.
The Company has elected not to recognise right-of use
Lease payments from operating leases are recognised
assets and lease liabilities for short term leases that
as an income in the Statement of Profit and Loss on
have a lease term of less than or equal to 12 months and
a straight-line basis over the lease term or another
leases with low value assets. The Company determines
systematic basis if that basis is more representative
the lease term as the non-cancellable period of a lease,
of the pattern in which benefit from the use of the
together with periods covered by an option to extend
underlying asset is diminished.
the lease, where the Company is reasonably certain to
exercise that option.
4. Significant accounting judgements, estimates
The Company recognises the lease payments associated and assumptions
with these leases as an expense in Statement of Profit The preparation of financial statements in conformity
and Loss on a straight-line basis over the lease term with the Ind AS requires the management to make
or another systematic basis if that basis is more judgments, estimates and assumptions that affect
representative of the pattern of the lessee’s benefit. The the reported amounts of revenues, expenses, assets
related cash flows are classified as operating activities. and liabilities and the accompanying disclosure and

Notes
the disclosure of contingent liabilities, at the end 4.2. Effective Interest Rate (EIR) method
of the reporting period. Estimates and underlying The Company’s EIR methodology, recognises interest
assumptions are reviewed on an ongoing basis. income using a rate of return that represents the best
Revisions to accounting estimates are recognised in the estimate of a constant rate of return over the expected
period in which the estimates are revised if the revision behavioural life of loans given and recognises the effect of
affects only that period or in the period of the revision potentially different interest rates at various stages and
and future periods if the revision affects both current other characteristics of the product life cycle (including
and future periods. Although these estimates are based prepayments and penalty interest and charges).
on the management’s best knowledge of current events
and actions, uncertainty about these assumptions and This estimation, by nature, requires an element of
estimates could result in the outcomes requiring a judgement regarding the expected behaviour and
material adjustment to the carrying amounts of assets life-cycle of the instruments, probable fluctuations in
or liabilities in future periods. collateral value as well as expected changes to India’s
base rate and other fee income/expense that are integral
In particular, information about significant areas parts of the instrument
of estimation, uncertainty and critical judgments
in applying accounting policies that have the most
significant effect on the amounts recognized in the 4.3. Impairment of loans portfolio
financial statements is included in the following notes: The measurement of impairment losses across all
categories of financial assets requires judgement, in
particular, the estimation of the amount and timing of
4.1. Business Model Assessment
future cash flows and collateral values when determining
Classification and measurement of financial assets impairment losses and the assessment of a significant
depends on the results of the Solely payments of increase in credit risk. These estimates are driven
principal and interest and the business model test. The by a number of factors, changes in which can result in
Company determines the business model at a level that different levels of allowances.
reflects how groups of financial assets are managed
together to achieve a particular business objective. This It has been the Company’s policy to regularly review
assessment includes judgement reflecting all relevant its models in the context of actual loss experience and
evidence including how the performance of the assets adjust when necessary.
is evaluated and their performance measured, the risks
that affect the performance of the assets and how these
are managed and how the managers of the assets are 4.4. Defined employee benefit assets and liabilities
compensated. The Company monitors financial assets The cost of the defined benefit gratuity plan and the
measured at amortised cost or fair value through other present value of the gratuity obligation are determined
comprehensive income that are derecognised prior using actuarial valuations. An actuarial valuation
to their maturity to understand the reason for their involves making various assumptions that may differ
disposal and whether the reasons are consistent with from actual developments in the future. These include
the objective of the business for which the asset was the determination of the discount rate, future salary
held. Monitoring is part of the Company’s continuous increases and mortality rates. Due to the complexities
assessment of whether the business model for which involved in the valuation and its long-term nature, a
the remaining financial assets are held continues to be defined benefit obligation is highly sensitive to changes
appropriate and if it is not appropriate whether there in these assumptions. All assumptions are reviewed at
has been a change in business model and so a prospective each reporting date.
change to the classification of those assets.

Standalone
Financial
Statements
Notes
4.5. Fair value measurement lease, if the use of such option is reasonably certain. The
When the fair values of financial assets and financial Company makes assessment on the expected lease term
liabilities recorded in the balance sheet cannot be on lease by lease basis and thereby assesses whether
measured based on quoted prices in active markets, it is reasonably certain that any options to extend or
their fair value is measured using various valuation terminate the contract will be exercised. In evaluating
techniques. The inputs to these models are taken from the lease term, the Company considers factors such as
observable markets where possible, but where this is not any significant leasehold improvements undertaken
feasible, a degree of judgment is required in establishing over the lease term, costs relating to the termination
fair values. Judgments include considerations of inputs of lease and the importance of the underlying to the
such as liquidity risk, credit risk and volatility. Changes Company’s operations taking into account the location
in assumptions about these factors could affect the of the underlying asset and the availability of the
reported fair value of financial instruments. suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects the
current economic circumstances.
4.6. Determination of lease term
Ind AS 116 “Leases” requires lessee to determine the
4.7. Other estimates
lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate the These include contingent liabilities, useful lives of
tangible and intangible assets etc.

Notes

Note 5.1: Cash and cash equivalents
As at As at
Particulars
March 31, 2023 March 31, 2022
Cash on hand 1,612.98 1,907.74
Balances with Banks
- in current accounts 57,632.89 35,228.96
- in fixed deposit (maturing within a period of three months) 45.00 26,660.24
Investment in TREPS 4,997.14 27,988.21
Total 64,288.01 91,785.15
Note 5.2: Bank balance other than cash and cash equivalents
As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed deposits with bank (maturing after period of three months) 140.00 141.20
Fixed deposits with bank under lien (Refer Note 5.2.1)
- Maturing within a period of three months 6.96 286.01
- Maturing after period of three months 70.19 65.27
Balance in other escrow accounts
- Unpaid (Unclaimed) Dividend Account 9.16 8.60
- Unspent CSR expenditure account 22.83 66.83
- Unpaid (Unclaimed) interest and redemption proceeds of Non- 74.81 76.07
Convertible debentures
Total 323.95 643.98
Note 5.2.1: Fixed deposits with banks under lien

Fixed Deposits with bank include fixed deposits given as security for borrowings ₹8.49 millions (March 31, 2022: ₹8.44
millions), fixed deposits given as security for guarantees ₹66.65 millions (March 31, 2022: ₹62.03 millions) and fixed deposits
on which lien is marked for other purposes ₹2.01 millions (March 31, 2022: ₹280.81 millions).
Note 5.3: The amount of Fixed deposits and Investment in TREPS in Notes 5.1 and 5.2 above does not include interest accrued
aggregating to ₹8.76 millions (March 31, 2022: ₹19.30 millions) disclosed separately under Other financial assets in Note 10.
Details of such interest accrued is as follows:
As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed deposit and Investment in TREPS (maturing within a period of three months) 2.59 12.09
Fixed deposits with bank under lien (maturing within a period of three months):
- given as security for borrowings 0.13 0.13
- given as security for guarantees 0.24 0.22
- other purposes - 0.35
Fixed deposits with bank under lien (maturing after period of three months):
- other purposes 0.08 0.03
Total 8.76 19.30

Standalone
Financial
Statements
Notes

Note 6: Derivative Financial Instruments
As at March 31, 2023 As at March 31, 2022
Notional Notional
Particulars Notional Notional
amounts Fair value- Fair value- amounts Fair value- Fair value-
amounts amounts
(USD Assets Liabilities (USD Assets Liabilities
(K millions) (K millions)
millions) millions)
(i) Currency derivatives
- Forward contracts 609.83 50,109.57 - 1,869.20 851.61 64,545.84 - 4,797.97
- Cross currency swaps - - - - 212.25 15,796.72 605.01 -
(ii) Interest Rate derivatives
- Interest rate swaps - 6,000.00 - 23.21 - - - -
Total 609.83 56,109.57 - 1,892.41 1,063.86 80,342.56 605.01 4,797.97
Included in above are derivatives
held for hedging and risk
management purposes as follows:
(i) Fair value hedging - - - - - - - -
(ii) Cash flow hedging:
- Currency derivatives 609.83 50,109.57 - 1,869.20 1,063.86 80,342.56 605.01 4,797.97
- Interest rate derivatives - 6,000.00 - 23.21
(iii) Net investment hedging - - - - - - - -
(iv) Undesignated Derivatives - - - - - - - -
Total (i)+ (ii)+(iii)+(iv) 609.83 56,109.57 - 1,892.41 1,063.86 80,342.56 605.01 4,797.97
The Company undertakes derivative transactions for hedging its exposures to interest rate risk and foreign exchange rate risk.
The management of foreign currency risk and interest rate risk is detailed in Note 42.
Note 7: Receivables
As at As at
Particulars
March 31, 2023 March 31, 2022
(I) Trade receivables
a) Receivables considered good - Secured - -
b) Receivables considered good - unsecured
Receivables from Money Transfer business 15.16 19.00
Receivables from Power Generation - Wind Mill 0.90 2.44
c) Receivables which have significant increase in Credit Risk - -
d) Receivables - credit impaired - -
Total 16.06 21.44
(II) Other receivables - -
Less: Allowance for impairment loss - -
Total Net Receivable 16.06 21.44
Trade receivables are non-interest bearing and are short-term in nature. These consist of receivable from government and
other parties, and does not involve any credit risk.
There are no dues from directors or other officers of the Company or any firm or private company in which any director is a
partner, a director or a member

Notes

7.1 Trade Receivables Ageing Schedule
As at March 31,2023
Outstanding for following periods from due date of payment
Particulars
Less than 6 months - 1-2 More than
2 - 3 years Total
6 months 1 years years 3 years
(i) Undisputed Trade receivables - 16.06 - - - - 16.06
considered good
(ii) Undisputed Trade Receivables - which - - - - - -
have significant increase in credit risk
(iii) Undisputed Trade Receivables - credit - - - - - -
impaired
(iv) Disputed Trade Receivables - - - - - - -
considered good
(v) Disputed Trade Receivables - which - - - - - -
(vi) Disputed Trade Receivables - credit - - - - - -
impaired
As at March 31,2022
Particulars
2 - 3 years Total
(i) Undisputed Trade receivables - 21.44 - - - - 21.44
considered good
impaired
considered good
impaired

Notes
Financial

Standalone
Statements
Note 8: Loans

At Fair value At Fair value
Particulars Amortised Designated Amortised Designated

Through Other Through Total Through Other Through Total
Cost at fair value Sub- Cost at fair value Sub-
Comprehensive profit or Comprehensive profit or
through total through total
Income loss Income loss
profit or loss profit or loss
(A)
i) Gold Loan 637,038.17 - - - - 637,038.17 595,873.38 - - - - 595,873.38
ii) Personal Loan 6,972.75 - - - - 6,972.75 3,206.26 - - - - 3,206.26
iii) Corporate Loan 1,185.11 - - - - 1,185.11 206.81 - - - - 206.81
iv) Business Loan 2,270.98 - - - - 2,270.98 1,058.57 - - - - 1,058.57
v) Staff Loan 30.35 - - - - 30.35 17.64 - - - - 17.64
vi) Loans to subsidiaries 2,600.00 - - - - 2,600.00 480.00 - - - - 480.00
Total (A) - Gross 650,306.42 - - - - 650,306.42 601,061.25 - - - - 601,061.25

vii) Other Loans 209.06 - - - - 209.06 218.59 - - - - 218.59
Total (A) - Net 642,648.80 - - - - 642,648.80 593,842.34 - - - - 593,842.34

Less: Impairment loss allowance 7,657.62 - - - - 7,657.62 7,218.91 - - - - 7,218.91
(B)
I) Secured by tangible assets
(including book debts)
i) Gold Loan 637,038.17 - - - - 637,038.17 595,873.38 - - - - 595,873.38
ii) Corporate Loan 1,185.11 - - - - 1,185.11 206.81 - - - - 206.81
iii) Business Loan 21.54 - - - - 21.54 31.75 - - - - 31.75
Total (I) - Gross 638,244.97 - - - - 638,244.97 596,112.09 - - - - 596,112.09

iv) Other Loans 0.15 - - - - 0.15 0.15 - - - - 0.15
Total (I) - Net 630,732.16 - - - - 630,732.16 589,007.67 - - - - 589,007.67

Less: Impairment loss allowance 7,512.81 - - - - 7,512.81 7104.42 - - - - 7,104.42

195
196
Notes

At Fair value At Fair value
Particulars Amortised Designated Amortised Designated

Through Other Through Total Through Other Through Total
Cost at fair value Sub- Cost at fair value Sub-
Comprehensive profit or Comprehensive profit or
through total through total
Income loss Income loss

II) Covered by Bank / Government
Guarantees
- - - - - - - - - - - -
III) Unsecured
i) Personal Loan 6,972.75 - - - - 6,972.75 3,206.26 - - - - 3,206.26
ii) Business Loan 2,249.44 - - - - 2,249.44 1,026.82 - - - - 1,026.82
iii) Staff Loan 30.35 - - - - 30.35 17.64 - - - - 17.64
iv) Loans to subsidiaries 2,600.00 - - - - 2,600.00 480.00 - - - - 480.00
Total (III) - Gross 12,061.45 - - - - 12,061.45 4,949.16 - - - - 4,949.16

v) Other Loans 208.91 - - - - 208.91 218.44 - - - - 218.44
Total (III) - Net 11,916.64 - - - - 11,916.64 4,834.67 - - - - 4,834.67

Less: Impairment loss allowance 144.81 - - - - 144.81 114.49 - - - - 114.49
Total (B) (I+II+III) - Net 642,648.80 - - - - 642,648.80 593,842.34 - - - - 593,842.34

(C) (I) Loans in India
i) Public Sector - - - - - - - - - - - -
(C) (II) Loans outside India

ii) Others 650,306.42 - - - - 650,306.42 601,061.25 - - - - 601,061.25
Total (C) - Gross 650,306.42 - - - - 650,306.42 601,061.25 - - - - 601,061.25

- - - - - - - - - - - -
Total (C)- Net 642,648.80 - - - - 642,648.80 593,842.34 - - - - 593,842.34

Less: Impairment loss allowance 7,657.62 - - - - 7,657.62 7,218.91 - - - - 7,218.91
Standalone
Financial
Statements
Notes

8.1 Credit Quality of Loan Assets
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit
rating system and year-end stage classification. The amounts presented are gross of impairment allowances. Details of
the Company’s internal grading system are explained in Note 42.
Particulars Stage 1 Stage 2 Stage 1 Stage 2
Stage 3 Total Stage 3 Total
Collective Collective Collective Collective
Internal rating grade
Performing
High grade 605,843.31 - - 605,843.31 552,090.89 - - 552,090.89
Standard grade 10,859.83 - - 10,859.83 10,718.16 - - 10,718.16
Sub-standard grade - 5,762.32 - 5,762.32 - 11,036.92 - 11,036.92
Past due but not impaired - 4,178.91 - 4,178.91 - 10,026.41 - 10,026.41
Non- performing
Individually impaired - - 23,985.96 23,985.96 - - 17,372.24 17,372.24
Total 616,703.14 9,941.23 23,985.96 650,630.33 562,809.05 21,063.33 17,372.24 601,244.61
EIR impact of Service charges (323.91) (183.36)
received
Gross carrying amount 650,306.42 601,061.25
closing balance net of EIR
impact of service charge
received
8.2 An analysis of changes in the gross carrying amount and the corresponding ECL allowances is, as follows:
2022-23 2021-22
Gross carrying amount 562,809.04 21,063.32 17,372.24 601,244.61 538,922.85 3,555.41 4,641.39 547,119.65
opening balance
New assets originated or 721,398.32 - - 721,398.32 663,090.58 - - 663,090.58
purchased
Assets derecognised or repaid (637,685.16) (18,839.36) (15,318.92) (671,843.44) (602,036.61) (3,282.34) (3,357.25) (608,676.19)
(excluding write offs)
Transfers to Stage 1 33.32 (31.28) (2.04) - 7.18 (6.01) (1.17) -
Transfers to Stage 2 (8,484.27) 8,485.31 (1.04) - (21,000.02) 21,000.05 (0.03) -
Transfers to Stage 3 (21,368.11) (736.76) 22,104.87 - (16,174.94) (203.79) 16,378.73 -
Amounts written off - - (169.16) (169.16) - - (289.43) (289.43)
closing balance
received
Gross carrying amount 650,306.42 601,061.25
impact of service charge
received

Notes

8.3 Reconciliation of ECL balance is given below:
2022-23 2021-22
ECL allowance - opening balance 5,169.69 209.80 1,839.42 7,218.91 5,591.56 60.42 605.51 6,257.49
New assets originated or purchased 5,859.16 - - 5,859.16 6,037.17 - - 6,037.17
Assets derecognised or repaid (5,751.47) (183.72) (1,605.91) (7,541.10) (6,155.80) (52.35) (459.78) (6,667.93)
Transfers to Stage 2 (77.31) 78.34 (1.04) (0.01) (218.67) 218.70 (0.03) -
Transfers to Stage 3 (194.91) (8.71) 203.62 - (170.15) (4.39) 174.54 -
Impact on year end ECL of exposures 80.16 9.82 2,199.84 2,289.82 83.29 (11.46) 1,809.78 1,881.61
transferred between stages during the
year
ECL allowance - closing balance 5,092.93 99.97 2,464.72 7,657.62 5,169.69 209.80 1,839.42 7,218.91
Note 9: Investments
As at March 31, 2023
At Fair value
Particulars Amortised Through Other Designated at fair
Through At cost Total
Cost Comprehensive value through Sub-total
profit or loss
Income profit or loss
i) Government securities 1,874.62 - - - - - 1,874.62
ii) Equity instruments
Subsidiaries - - - - - 9,272.32 9,272.32
Others - 1,875.66 0.03 - 1,875.69 - 1,875.69
iii) Preference shares
Subsidiaries - - - - - 145.96 145.96
Total Gross (A) 1,874.62 1,875.66 0.03 - 1,875.69 9,418.28 13,168.59
i) Investments outside India - 452.03 - - 452.03 700.10 1,152.13
ii) Investments in India 1,874.62 1,423.63 0.03 - 1,423.66 8,718.18 12,016.46
Total Gross (B) 1,874.62 1,875.66 0.03 - 1,875.69 9,418.28 13,168.59
Less: Allowance for impairment loss ( C) - - - - - - -
Total - Net D = (A) - (C ) 1,874.62 1,875.66 0.03 - 1,875.69 9,418.28 13,168.59

Standalone
Financial
Statements
Notes

At Fair value
Through At cost Total
profit or loss
i) Government securities 1,876.06 - - - - - 1,876.06
ii) Equity instruments
Subsidiaries - - - - - 9,222.32 9,222.32
Others - 1,960.47 0.02 - 1,960.49 - 1,960.49
iii) Preference shares
Subsidiaries - - - - - 145.96 145.96
Total Gross (A) 1,876.06 1,960.47 0.02 - 1,960.49 9,368.28 13,204.83
i) Investments outside India - 630.50 - - 630.50 700.10 1,330.60
ii) Investments in India 1,876.06 1,329.97 0.02 - 1,329.99 8,668.18 11,874.23
Total Gross (B) 1,876.06 1,960.47 0.02 - 1,960.49 9,368.28 13,204.83
Less: Allowance for impairment loss ( C) - - - - - - -
Total - Net D = (A) - (C ) 1,876.06 1,960.47 0.02 - 1,960.49 9,368.28 13,204.83
9.1 Details of investments are as follows :-
Government securities
Particulars
Units Amount Units Amount
State Development Loans 7,690,300 769.59 7,790,300 778.20
Central Government Securities* 11,500,000 1,105.03 11,500,000 1,097.86
Total 1,874.62 1,876.06
*Lien has been marked on Central Government Securities of face value I190 Mn as additional margin given to the Clearing Corporation of India
Limited.

Notes

Equity instruments
Particulars
Subsidiaries
Quoted
Asia Asset Finance PLC, Sri Lanka 90,558,778 554.14 90,558,778 554.14
Unquoted
Muthoot Homefin (India) Limited 119,155,843 3,639.89 119,155,843 3,639.89
Muthoot Insurance Brokers Private Limited 750,000 200.00 750,000 200.00
Belstar Microfinance Limited (formerly known as 27,825,405 2,768.81 27,678,345 2,718.81
Belstar Investment and Finance Private Limited)
Muthoot Trustee Private Limited 1,000,000 10.00 1,000,000 10.00
Muthoot Asset Management Private Limited 100,000,000 1,000.00 100,000,000 1,000.00
Muthoot Money Limited 62,170 1,099.48 62,170 1,099.48
Subtotal 9,272.32 9,222.32
Others
Quoted
Union Bank of India 454 0.03 454 0.02
Nabil Bank Limited, Nepal (Refer Note 9.2) 1,198,531 452.03 1,011,418 630.50
Unquoted
Muthoot Forex Limited 1,970,000 153.76 1,970,000 139.00
Muthoot Securities Limited 2,700,000 238.79 2,700,000 192.92
CRIF High Mark Credit Information Services Private 1,926,531 258.43 1,926,531 247.68
Limited
ESAF Small Finance Bank Limited 18,717,244 772.65 18,717,244 750.37
Subtotal 1,875.69 1,960.49
Total 11,148.01 11,182.81
Preference Shares
Particulars
Asia Asset Finance PLC, Sri Lanka 39,687,516 145.96 39,687,516 145.96
Total 145.96 145.96
9.2: The Company holds 1,198,531 equity shares of Nepalese Rupee 100/- each in Nabil Bank Limited, Nepal as at March 31,
2023. The management does not have significant influence over the entity as specified in Ind AS-28 - Investments in
Associates and Joint Ventures; and has elected to recognise and measure the investment at fair value through OCI as per
the requirements of Ind AS 109 – Financial Instruments.

Standalone
Financial
Statements
Notes

Note 10: Other financial assets
As at As at
Particulars
March 31, 2023 March 31, 2022
Security deposits 985.71 924.80
Interest accrued on fixed deposits with banks and investment in TREPS (Refer Note 5.3) 8.76 19.30
Interest accrued on CG Securities on purchase - 5.92
Interest accrued on State Securities on purchase - 0.91
Other financial assets 341.72 274.05
Total 1,336.19 1,224.98
Note 11: Property, plant and equipment

Furniture Capital-
Plant and
Particulars Land Buildings and Computer** Vehicles Wind Mill Total work-in
Equipment*
Fixtures progress
Gross block- at cost
As at April 01, 2021 692.55 655.27 827.71 1,407.65 356.66 111.40 23.35 4,074.59 384.77
Additions 150.74 38.04 190.68 290.09 73.17 - - 742.72 71.71
Disposals - 6.07 0.06 12.27 0.03 0.36 - 18.79 -
As at March 31, 2022 843.29 687.24 1,018.33 1,685.47 429.80 111.04 23.35 4,798.52 456.48
Additions - 6.35 124.87 376.51 104.87 0.59 - 613.19 217.79
Disposals - - 0.06 10.88 0.03 1.81 - 12.78 -
As at March 31, 2023 843.29 693.59 1,143.14 2,051.10 534.64 109.82 23.35 5,398.93 674.27
Accumulated depreciation
As at April 01, 2021 - 204.38 368.30 756.84 263.87 58.54 6.82 1,658.75 -
Charge for the year - 44.31 161.28 224.89 65.98 15.70 1.37 513.53 -
Disposals - 1.28 0.06 9.11 0.01 0.22 - 10.68 -
As at March 31, 2022 - 247.41 529.52 972.62 329.84 74.02 8.19 2,161.60 -
Charge for the year - 43.35 157.97 272.57 79.40 10.84 1.25 565.38 -
Disposals - - 0.06 8.53 0.01 1.55 - 10.15 -
As at March 31, 2023 - 290.76 687.43 1,236.66 409.23 83.31 9.44 2,716.83 -
Net Block
As at March 31, 2022 843.29 439.83 488.81 712.85 99.96 37.02 15.16 2,636.92 456.48
As at March 31, 2023 843.29 402.83 455.71 814.44 125.41 26.51 13.91 2,682.10 674.27
* Includes Office equipment
** Includes Server and networking
Refer note 34 for details of property pledged as security.
The Company has not revalued its Property, Plant and equipment (including Right-of-Use asset) during the year.

Notes

The title deeds of immovable property (other than the properties where the company is the lessee and the lease agreements
are duly executed in favour of the Company), disclosed in the financial statements are held in the name of the Company. In
respect of certain immovable properties acquired under a scheme of amalgamation in a prior year, the title deeds continue to
remain in the name of the erstwhile owners the details of which are as stated below:
Whether
Period held
Gross promoter,
Held in – indicate
S.No: Description of property carrying director or Reason for not being held in name of company
name of range, where
value their relative
appropriate
or employee
1 Flat No: 1F in "West Gate 0.77 George Promoter From The property was acquired by the company under a
Terrace" Pandit Cauppen Jacob 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
road, Thevara, Cochin from 01st April 2004 vide order dated 31st January 2005
measuring 1224 Sq.ft by the Hon. High Court of Kerala. The order states that
the undertakings of the transferor company shall, with
effect from the opening of the business as on the transfer
date and without any further act or deed, be shall stand
transferred to or vested in the transferee company. Hence
no further mutation of the property is required to be done.
2 Office Space in " Vikas 0.40 Late. M G Promoter From The property was acquired by the company under a
Marg", Laxmi Nagar, New George, 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Delhi, measuring 1,400 George from 01st April 2004 vide order dated 31st January 2005
Sq. Ft Thomas, by the Hon. High Court of Kerala. The order states that
George the undertakings of the transferor company shall, with
Jacob, effect from the opening of the business as on the transfer
George date and without any further act or deed, be shall stand
Alexander transferred to or vested in the transferee company. Hence
3 Flat No: 4236, 5&6 Sector 0.39 Late. M G Promoter From The property was acquired by the company under a
B in Vasanda Kunj, New George 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Delhi 125.09 Sq Mtr from 01st April 2004 vide order dated 31st January 2005
by the Hon. High Court of Kerala. The order states that
4 Office Space in First Floor 0.96 Late. M G Promoter From The property was acquired by the company under a
of "Nehru Place" Satkar George 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Building 79-80 New Delhi from 01st April 2004 vide order dated 31st January 2005
measuring 591 Sq ft. by the Hon. High Court of Kerala. The order states that
5 Office Space in "Pattom 0.31 Late. M G Promoter From The property was acquired by the company under a
Building", Trivandrum, George, 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
situated in 5 cents of George from 01st April 2004 vide order dated 31st January 2005
land in Sy. No: 1752/B/1 Thomas, by the Hon. High Court of Kerala. The order states that
in Nadathuvinakkam, George the undertakings of the transferor company shall, with
Trivandrum Jacob, effect from the opening of the business as on the transfer

Standalone
Financial
Statements
Notes

Whether
Period held
Gross promoter,
appropriate
or employee
6 Flat No: 221 Block C, in 0.69 Late. M G Promoter From The property was acquired by the company under a
"Sidharth Extension", George 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
New Delhi, measuring from 01st April 2004 vide order dated 31st January 2005
900 Sq ft. by the Hon. High Court of Kerala. The order states that
7 Office space No: 1.62 Late. M G Promoter From The property was acquired by the company under a
106/107 in "Navaketha George, 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Secunderabad", George from 01st April 2004 vide order dated 31st January 2005
measuring 1446.5 Sq ft. Thomas, by the Hon. High Court of Kerala. The order states that
George the undertakings of the transferor company shall, with
Jacob, effect from the opening of the business as on the transfer
8 Office space in Kurian 0.94 George Promoter From The property was acquired by the company under a
Towers, Banerjee Alexander 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Road Kochi - 682018, from 01st April 2004 vide order dated 31st January 2005
measuring 1,092 Sq ft. by the Hon. High Court of Kerala. The order states that
(Sy. No. 318/7) the undertakings of the transferor company shall, with
9 Office space in Kurian 0.77 Anna Relative of From The property was acquired by the company under a
Towers, Banerjee Alexander Promoter 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
measuring 897 Sq ft. (Sy. by the Hon. High Court of Kerala. The order states that
No. 318/7) the undertakings of the transferor company shall, with
Towers, Banerjee Jacob 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
measuring 1,469.50 Sq ft. by the Hon. High Court of Kerala. The order states that

Notes

Whether
Period held
Gross promoter,
appropriate
or employee
11 Office space in Kurian 0.69 Elizabeth Relative of From The property was acquired by the company under a
Towers, Banerjee Jacob Promoter 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Towers, Banerjee Thomas 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Towers, Banerjee Thomas 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
14 Office space in Kurian 0.86 Susan Relative of From The property was acquired by the company under a
Towers, Banerjee Thomas Promoter 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
15 Office space in Kurian 1.87 Late. M G Promoter From The property was acquired by the company under a
Towers, Banerjee George 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
measuring 1,637 Sq ft. by the Hon. High Court of Kerala. The order states that

Standalone
Financial
Statements
Notes

Whether
Period held
Gross promoter,
appropriate
or employee
16 Flat No: 2B3 at 2.04 George Promoter From The property was acquired by the company under a
B-Canty Homes in Jacob 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
1,525 cents of land in from 01st April 2004 vide order dated 31st January 2005
Shasthamangalam, by the Hon. High Court of Kerala. The order states that
Trivandrum the undertakings of the transferor company shall, with
17 Office space at "Alpha 1.68 Late. M G Promoter From The property was acquired by the company under a
Plaza, Kadavanthara, George 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
Ernakulam measuring from 01st April 2004 vide order dated 31st January 2005
1345 sq.ft by the Hon. High Court of Kerala. The order states that
18 Office space at "Alpha 1.22 George Promoter From The property was acquired by the company under a
Plaza, Kadavanthara, Alexander 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
transferred to or vested in the transferee company.
Hence no further mutation of the property is required
to be done.

Notes

Whether
Period held
Gross promoter,
appropriate
or employee
to be done.
Plaza, Kadavanthara, Thomas 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
to be done.
Plaza, Kadavanthara, Thomas 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
to be done.
Plaza, Kadavanthara, Jacob 01/04/2004 'Scheme of Arrangement and Amalgamation' effective
to be done.
Plaza, Kadavanthara, Jacob 01/04/2004 'Scheme of Arrangement and Amalgamation' effective

Standalone
Financial
Statements
Notes

11.1Capital work-in-progress (CWIP) ageing schedule
As at March 31,2023
Particulars Amount in CWIP for a period of
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress 217.79 71.71 97.41 287.36 674.27
Projects temporarily suspended - - - - -
As at March 31,2022
Note 12: Other Intangible Assets

Computer
Particulars
Software
As at April 01, 2021 179.16
Additions 9.39
Disposals -
As at March 31, 2022 188.55
Additions 15.99
Disposals -
As at March 31, 2023 204.54
Accumulated amortisation
As at April 01, 2021 125.58
Charge for the year 25.61
Disposals -
As at March 31, 2022 151.19
Charge for the year 17.76
Disposals -
As at March 31, 2023 168.95
Net book value
As at March 31, 2022 37.36
As at March 31, 2023 35.59
The Company has not revalued its Intangible assets during the year.

Notes

Note 13: Other non-financial assets
As at As at
Particulars
March 31, 2023 March 31, 2022
Balances with government authorities 104.96 104.96
Prepaid expenses 93.01 74.38
Capital advances 107.05 12.58
Stock of gold 4.25 6.71
Balances receivable from government authorities 173.68 267.76
CSR Pre-spent account 6.95 -
Other Receivables 133.14 136.55
Total 623.04 602.94
Note 14: Payables

As at As at
Particulars
March 31, 2023 March 31, 2022
(I) Trade Payables
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises 1,257.70 1,143.66
(II) Other payables
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises 701.68 367.92
Total 1,959.38 1,511.58
14.1 Trade Payables Ageing Schedule

As at March 31,2023
Particulars Outstanding for following periods from due date of payment
(i) MSME - - - - -
(ii) Others 1,057.38 48.40 61.47 90.45 1,257.70
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues – Others - - - - -
As at March 31,2022
(i) MSME - - - - -
(ii) Others 953.22 92.11 30.42 67.91 1,143.66

Standalone
Financial
Statements
Notes

14.2 Other Payables Ageing Schedule
As at March 31,2023
(i) MSME - - - - -
(ii) Others 693.45 5.68 2.55 - 701.68
As at March 31,2022
(i) MSME - - - - -
(ii) Others 364.89 3.03 - - 367.92
Note 15: Debt Securities

At fair At fair
Designated Designated
Particulars At value At value
at fair value at fair value
amortised through Total amortised through Total
through through
cost profit or cost profit or
loss loss
Secured Non-Convertible 844.50 - - 844.50 2,194.56 - - 2,194.56
Debentures*
(Secured by mortgage of
immovable property and pari
passu floating charge on current
assets, book debts, loans &
advances and receivables
including gold loan receivables)
(Refer note 15.1)
Secured Non-Convertible 120,763.13 - - 120,763.13 113,912.67 - - 113,912.67
Debentures -Listed**
including gold loan receivables/
Secured by pari passu floating
charge on current assets, book
debts, loans & advances and
receivables including gold loan
receivables)
(Refer note 15.2 & 15.3)

Notes

At fair At fair
through through
loss loss
Principal Protected Market 8,201.00 - - 8,201.00 8,871.65 - - 8,871.65
Linked Secured Non-Convertible
Debentures - Listed**
(Refer note 15.4)
Secured Redeemable 7,575.00 - - 7,575.00 - - - -
Non-Convertible Debentures
- Listed & Separately
Transferable Redeemable
Principal Parts **
(Secured by pari passu floating
charge on current assets, book
debts, loans & advances and
receivables including gold loan
receivables) (Refer note 15.5)
Total (A) 137,383.63 - - 137,383.63 124,978.88 - - 124,978.88
Debt securities in India 137,383.63 - - 137,383.63 124,978.88 - - 124,978.88
Debt securities outside India - - - - - - - -
Total (B) 137,383.63 - - 137,383.63 124,978.88 - - 124,978.88
*Excludes unpaid (unclaimed) matured debentures of ₹199.90 millions (March 31,2022: ₹48.82 millions) shown as a part of Other financial liabilities
in Note 18.
**Includes EIR impact of transaction cost, premium/discount on issue of non-convertible debentures; excludes unpaid (unclaimed) matured listed
debentures of ₹69.84 millions (March 31,2022: ₹69.00 millions) shown as a part of Other financial liabilities in Note 18.
The amortised cost of Debt Securities in Note 15 above does not include interest accrued but not due aggregating to ₹7,312.46
millions (March 31,2022: ₹8,915.33 millions) disclosed separately under Other financial liabilities in Note 18.

Standalone
Financial
Statements
Notes

15.1 Secured Redeemable Non-Convertible Debentures
The Company had privately placed Secured Redeemable Non- Convertible Debentures for a maturity period of 60-120
months with a principal amount outstanding of ₹1,044.40 millions (March 31,2022: ₹2,243.38 millions)
Amount Amount Redemption
Series Date of allotment As at As at Period from the Interest Rate %
March 31, 2023 March 31, 2022 date of allotment
CT 14.03.2014-31.03.2014 2.50 2.50 120 months 10.50-12.50
CS 27.02.2014-14.03.2014 5.00 10.00 120 months 10.50-12.50
CR 07.02.2014-27.02.2014 2.50 10.00 120 months 10.50-12.50
CQ 04.02.2014-07.02.2014 3.00 10.50 120 months 10.50-12.50
CP 20.01.2014-04.02.2014 43.00 45.50 120 months 10.50-12.50
CO 10.01.2014-20.01.2014 96.50 105.00 120 months 10.50-12.50
CN 03.01.2014-10.01.2014 56.00 63.50 120 months 10.50-12.50
CM 24.12.2013-03.01.2014 27.50 32.50 120 months 10.50-12.50
CL 05.12.2013-24.12.2013 - 5.50 120 months 10.50-12.50
CK 18.11.2013-05.12.2013 - 5.00 120 months 10.50-12.50
CJ 29.10.2013-18.11.2013 5.00 7.50 120 months 10.50-12.50
CI 09.10.2013-29.10.2013 7.50 12.50 120 months 10.50-12.50
CH 27.09.2013 - 09.10.2013 2.50 7.50 120 months 10.50-12.50
CG 06.09.2013 - 27.09.2013 2.50 7.50 120 months 10.50-12.50
CF 31.08.2013 - 06.09.2013 2.50 2.50 120 months 10.50-12.50
CE 12.08.2013 - 31.08.2013 5.00 15.50 120 months 10.50-12.50
CD 31.07.2013 - 10.08.2013 - 2.50 120 months 10.50-12.50
CC 08.07.2013 - 31.07.2013 2.50 12.50 120 months 10.50-12.50
CB 24.06.2013 - 07.07.2013 173.10 337.06 120 months 10.50-12.50
CA 18.04.2013 - 23.06.2013 327.70 634.07 120 months 10.50-12.50
BZ 01.03.2013 - 17.04.2013 179.48 471.16 120 months 10.50-12.50
BY 18.01.2013 - 28.02.2013 65.51 394.26 120 months 10.50-12.50
BX 26.11.2012 - 17.01.2013 4.25 4.72 60 months 10.50-12.50
BW 01.10.2012 - 25.11.2012 6.52 7.37 60 months 11.50-12.50
BV 17.08.2012 - 30.09.2012 3.80 3.89 60 months 11.50-12.50
BU 01.07.2012 - 16.08.2012 1.67 2.24 60 months 11.50-12.50
BT 21.05.2012 - 30.06.2012 1.03 1.16 60 months 11.50-12.50
BS 01.05.2012 - 20.05.2012 1.47 2.14 60 months 11.50-12.50
BR 01.03.2012 - 30.04.2012 5.65 6.82 60 months 11.50-12.50
BQ 23.01.2012 - 29.02.2012 2.00 2.16 60 months 11.50-12.50
BP 01.12.2011 - 22.01.2012 2.13 2.75 60 months 11.50-12.50
BO 19.09.2011 – 30.11.2011 2.80 3.09 60 months 11.00-12.00
BN 01.07.2011 – 18.09.2011 2.49 2.88 60 months 11.00-12.00
BM 01.04.2011 – 30.06.2011 1.30 2.13 60 months 11.00-12.00
BL 01.01.2011 - 31.03.2011 - 2.83 60 months 10.00-11.50
BK 01.10.2010 - 31.12.2010 - 1.51 60 months 9.50-11.50
BJ 01.07.2010 – 30.09.2010 - 2.56 60 months 9.50-11.00
BI 01.04.2010 - 30.06.2010 - 0.57 60 months 9.00-10.50

Notes

BH 01.01.2010 - 31.03.2010 - 0.01 60 months 9.00-10.50

Sub Total 1,044.40 2,243.38
Less: Unpaid (Unclaimed) matured 199.90 48.82
debentures shown as a part of Other
financial liabilities
Total 844.50 2,194.56
15.2 Secured Redeemable Non-Convertible Debentures - Public Issue & Listed

The principal amount of outstanding Secured Redeemable Non-Convertible Listed Debentures raised through Public
Issue stood at ₹72,818.34 millions (March 31,2022: ₹71,761.40 millions).

Series Date of allotment As at As at Period from the Interest rate %
PL 26 05.05.2022 237.24 - 120 Months 7.50-8.00
PL 25 20.04.2021 2,290.47 2,290.47 120 Months 8.00-8.25
PL 22 27.12.2019 445.96 445.96 90 Months 9.67
PL 21 01.11.2019 432.00 432.00 90 Months 9.67
PL 20 14.06.2019 322.43 322.43 90 Months 9.67
PL 27 23.06.2022 356.03 - 84 Months 7.50-8.00
PL 26 05.05.2022 86.18 - 84 Months 7.25-7.75
PL 30 10.03.2023 740.73 - 61 Months 7.85-8.60
PL 29 23.12.2022 643.74 - 60 Months 7.50-8.25
PL 28 03.11.2022 997.52 - 60 Months 7.25-8.00
PL 27 23.06.2022 666.67 - 60 Months 7.00-7.75
PL 26 05.05.2022 1,184.15 - 60 Months 6.75-7.50
PL 25 20.04.2021 4,637.49 4,637.49 60 Months 7.35-7.85
PL 24 11.01.2021 1,433.72 1,433.72 60 Months 7.10-7.75
PL 23 05.11.2020 1,425.54 1,425.54 60 Months 7.50-8.00
PL 22 27.12.2019 1,488.68 1,488.68 60 Months 9.75-10.00
PL 21 01.11.2019 1,574.40 1,574.40 60 Months 9.75-10.00
PL 20 14.06.2019 3,061.02 3,061.02 60 Months 9.75-10.00
PL 19 20.03.2019 2,491.39 2,491.39 60 Months 9.75-10.00
PL 18 19.04.2018 9,839.02 9,839.02 60 Months 8.75-9.00
PL 17 24.04.2017 - 2,517.38 60 Months 8.75-9.00
PL 25 20.04.2021 6,223.12 6,223.12 38 Months 6.85-7.35
PL 24 11.01.2021 1,496.14 1,496.14 38 Months 6.75-7.40
PL 23 05.11.2020 18,574.46 18,574.46 38 Months 7.15-7.65
PL 22 27.12.2019 - 2,125.49 38 Months 9.50-9.75
PL 21 01.11.2019 - 1,327.46 38 Months 9.50-9.75
PL 20 14.06.2019 - 3,157.25 38 Months 9.50-9.75
PL 19 20.03.2019 - 3,049.07 38 Months 9.50-9.75
PL 30 10.03.2023 1,495.71 - 37 Months 7.75-8.50

Standalone
Financial
Statements
Notes

PL 29 23.12.2022 725.42 - 36 Months 7.35-8.10

PL 28 03.11.2022 1,270.23 - 36 Months 7.00-7.75
PL 27 23.06.2022 1,629.13 - 36 Months 6.75-7.50
PL 26 05.05.2022 2,269.51 - 36 Months 6.50-7.25
PL 25 20.04.2021 3,848.91 3,848.91 26 Months 6.60-6.85
PL 30 10.03.2023 340.06 - 25 Months 7.75-8.25
PL 29 23.12.2022 181.85 - 24 Months 7.25-7.75
PL 28 03.11.2022 409.42 - 24 Months 7.00-7.50
Sub Total 72,818.34 71,761.40
Less: EIR impact 159.94 244.87
Total 72,658.40 71,516.53
15.3 Secured Redeemable Non-Convertible Debentures - Private Placement & Listed

The principal amount of outstanding Secured Redeemable Non-Convertible Listed Debentures privately placed stood at
₹48,100.00 millions (March 31,2022: ₹42,400.00 millions)
Redemption
Amount Amount Period from the Interest Rate %
Series Date of allotment date of allotment
As at As at
March 31, 2023 March 31, 2022
18 31.05.2021 2,150.00 2,150.00 9 year & 364 days 7.90
9 18.06.2020 1,250.00 1,250.00 5 year 9.50
25 24.02.2023 1,600.00 - 3year+90days 8.65
23 22.12.2022 1,950.00 - 3year+15days 8.30
22 16.09.2022 2,400.00 - 3year+14days 7.75
24 19.01.2023 10,000.00 - 3year+10days 8.50
20 17.02.2022 5,000.00 5,000.00 3 year & 10 days 6.87
19 26.08.2021 4,000.00 4,000.00 3 year 8.25
16 16.10.2020 4,600.00 4,600.00 3 year 7.50
12 15.07.2020 1,000.00 1,000.00 3 year 8.40
8 02.06.2020 5,000.00 5,000.00 3 year 9.05
25 24.02.2023 4,400.00 - 2year+182days 8.60
10 25.06.2020 - 3,650.00 2 year & 9 days 8.50
14 25.09.2020 - 4,500.00 2 year & 61 days 7.15
17 09.03.2021 1,750.00 1,750.00 2 year & 49 days 6.65
7 14.05.2020 1,000.00 1,000.00 2 year & 363 days 9.00
11 07.07.2020 - 6,500.00 2 year & 32 days 8.30
21 24.02.2022 2,000.00 2,000.00 1 year & 364 days 6.17
Sub Total 48,100.00 42,400.00
(Add)/Less: EIR impact (4.73) 3.86
Total 48,104.73 42,396.14

Notes

15.4 Principal Protected Market Linked Secured Redeemable Non-Convertible Debentures - Private
Placement & Listed
The principal amount of outstanding Principal Protected Market Linked Secured Redeemable Non-Convertible Listed
Debentures privately placed stood at ₹8,201.00 millions (March 31,2022: 8,873.00 millions)
Redemption
Amount Amount Period from the Interest Rate %
Series Date of allotment date of allotment
As at As at
March 31, 2023 March 31, 2022
7 11.01.2023 1,033 - 1155 Days 8.14
6 20.09.2022 5,000 - 1157 Days 7.60
5 24.03.2022 2,168 2,168.00 3 Year & 60 Days 7.00
4 07.09.2020 - 2,000.00 760 days 7.15
3 24.07.2020 - 1,000.00 761 days 7.75
2 09.07.2020 - 2,350.00 729 days 8.25
1 12.06.2020 - 1,355.00 728 days 8.75
Sub Total 8,201.00 8,873.00
Less: EIR impact - 1.35
Total 8,201.00 8,871.65
15.5 Secured Redeemable Non-Convertible Debentures - Private Placement & Listed & Separately
Transferable Redeemable Principal Parts (STRPP)
The principal amount of outstanding STRPP Secured Redeemable Non-Convertible Listed Debentures privately placed stood at
₹7,575.00 millions (March 31,2022: NIL)
First & Final Amount Amount Redemption

Paid-up
Face value Call Amount Date of Period from Interest
Series value per As at As at
per STRPP per STRPP & allotment the date of Rate %
STRPP March 31, 2023 March 31, 2022
Date allotment
STRPP - 1A 100,000.00 100,000.00 NA 15.03.2023 5,000.00 - 2year+9months 8.65
STRPP - 1B 100,000.00 1,000.00 99,000 on 15.03.2023 50.00 - 4years, Put 8.65
December 15, option on
2025 at the December 15,
option of NCD 2025
Holder
STRPP - 2A 100,000.00 100,000.00 NA 23.03.2023 2,500.00 - 3years 8.65
STRPP - 2B 100,000.00 1,000.00 99,000 on 23.03.2023 25.00 - 4year+184days, 8.65
March 23, Put option on
2026 at the March 23, 2026
option of NCD
Holder
Sub Total 7,575.00 -
Less: EIR - -
impact
Total 7,575.00 -

Standalone
Financial
Statements
Notes

Note 16: Borrowings (other than debt securities)
Particulars At fair value Designated at fair

At amortised cost through profit value through Total
or loss profit or loss
(a) Term loan
(i) from banks*
Term loan (Secured by pari passu floating charge on 159,381.46 - - 159,381.46
current assets, book debts, Loans & advances and
receivables including gold loan receivables)
(Terms of Repayment: ₹857.14 millions in 2 half
yearly installments and ₹70,763.33 millions in
1-2-3-4 quarterly installments during FY 2023-
24, ₹857.14 millions in 2 half yearly installments,
₹52,849.53 millions in 1-2-3-4 quarterly installments
and ₹2,000.00 millions in bullet payment during FY
2024-25, ₹21,742.57 millions in 1-2-3-4 quarterly
installments during FY 2025-26, ₹7,169.96 millions
in 1-3-4 quarterly installments during FY 2026-27,
₹3,216.01 millions in 1-3-4 quarterly installments
during FY 2027-28. Rate of Interest: 7.50-9.55 % p.a.)
Term Loan (Secured by specific charge on vehicles) - - - -
(ii) from financial institutions*
(Terms of Repayment: ₹218.75 millions in 1 quarterly
installment during FY 2023-24, ₹875 millions in 4
quarterly installments during FY 2024-25, ₹656.25
millions in 3 quarterly installments during FY 2025-
26. Rate of Interest: 8.25% p.a.)
Term Loan (Secured by specific charge on vehicles) 5.37 - - 5.37
(Terms of Repayment: ₹3.90 millions during FY 2023-
24 in 6-8-12 monthly installments, ₹1.48 millions
during FY 2024-25 in 7 monthly installments Rate of
Interest: 8.90-9.90% p.a.).
(b) Loans from related party
Loan from Directors and Relatives (Unsecured) 6,150.14 - - 6,150.14
(Terms of Repayment: Repayable on demand- Rate of
Interest: 8% p.a,)
(c) Loans repayable on demand
(i) from banks*
Overdraft against Deposit with Banks (Secured by a - - - -
lien on Fixed Deposit with Banks)
Cash Credit/Short Term Loan (Secured by pari passu 132,999.92 - - 132,999.92
floating charge on current assets, book debts, Loans
& advances and receivables including gold loan
receivables)
Short term loan (Secured by pari passu floating 1,999.51 - - 1,999.51
charge on current assets, book debts, Loans &
advances and receivables including gold loan
receivables)

Notes


(d) External Commercial Borrowings
(i) Senior Secured Notes - US Dollar denominated*
(Secured by pari passu floating charge on current 45,170.78 - - 45,170.78
assets, book debts, Loans & advances and receivables
(Terms of Repayment: ₹45,193.50 millions (USD 550
million repayable on 02 September 2023-Rate of
Interest: 4.40% p.a)
(e) Commercial paper - Listed
(Unsecured and repayable within 1 year) 11,535.66 - - 11,535.66
Total (A) 358,992.41 - - 358,992.41
Borrowings in India 313,821.63 - - 313,821.63
Borrowings outside India 45,170.78 - - 45,170.78
Total (B) 358,992.41 - - 358,992.41
*Includes EIR impact of transaction cost
The amortised cost of Borrowing (other than debt securities) as at March 31, 2023 in Note 16 above does not include interest accrued but not due
amounting to ₹953.13 millions disclosed separately under Other financial liabilities in Note 18.
Where the company has borrowed funds from banks and financial institutions on the basis of security of current assets, it has filed quarterly
returns or statements of current assets with banks and financial institutions and the said returns or statements are in agreement with books of
accounts.

(a) Term loan
(i) from banks*
(Terms of Repayment: ₹857.14 millions in 2 half yearly
installments, ₹56,889.86 millions in 1-2-3-4 quarterly
installments and ₹167.50 millions in 3 monthly
installments during FY 2022-23, ₹857.14 millions in 2
half yearly installments and ₹48,026.14 millions in 1-2-
3-4 quarterly installments during FY 2023-24, ₹857.14
millions in 2 half yearly installments and ₹26,555.29
millions in 1-2-3-4 quarterly installments during FY 2024-
25, ₹5,199.35 millions in 1-2-3-4 quarterly installments
during FY 2025-26, ₹2,000.00 millions in 4 quarterly
installments during FY 2026-27. Rate of Interest: 5.79-
8.35 % p.a.)
(Terms of Repayment: ₹3.64 millions during FY 2022-23
in 8 monthly installments. Rate of interest: 8.70% p.a.)
(ii) from financial institutions
Term loan (Secured by pari passu floating charge on - - - -

Standalone
Financial
Statements
Notes


(Terms of Repayment: ₹4.40 millions during FY 2022-23
in 12 monthly installments, ₹3.90 millions during FY
2023-24 in 6-8-12 monthly installments, ₹1.48 millions
during FY 2024-25 in 7 monthly installments Rate of
Interest: 8.90-9.90% p.a.)
(Terms of Repayment: Repayable on demand- Rate of
Interest: 8.50% p.a.)
(c) Loans repayable on demand
(i) from banks*
Overdraft against Deposit with Banks (Secured by a - - - -
lien on Fixed Deposit with Banks)
Cash Credit/Short Term Loan (Secured by pari passu 132,357.64 - - 132,357.64
floating charge on current assets, book debts, Loans
& advances and receivables including gold loan
receivables)
Short term loan (Secured by pari passu floating 2,749.67 - - 2,749.67
charge on current assets, book debts, Loans &
advances and receivables including gold loan
receivables)
(d) External Commercial Borrowings
(i) Senior Secured Notes - US Dollar denominated*
(Secured by pari passu floating charge on current 75,663.21 - - 75,663.21
assets, book debts, Loans & advances and receivables
(Terms of Repayment: ₹34,106.63 millions (USD
450 million repayable on 31 October 2022-Rate of
Interest: 6.125% p.a), ₹41,685.87 millions (USD 550
million repayable on 02 September 2023-Rate of
Interest: 4.40% p.a)
(e) Commercial paper - Listed 9,892.06 - - 9,892.06
(Unsecured and repayable within 1 year) -
Total (A) 371,709.88 - - 371,709.88
Total (B) 371,709.88 - - 371,709.88
The amortised cost of Borrowing (other than debt securities) as at March 31, 2022 in Note 16 above does not include interest
accrued but not due amounting to ₹1,603.18 millions disclosed separately under Other financial liabilities in Note 18.
Where the company has borrowed funds from banks and financial institutions on the basis of security of current assets, it has
filed quarterly returns or statements of current assets with banks and financial institutions and the said returns or statements
are in agreement with books of accounts.

Notes

Note 17: Subordinated Liabilities
At fair At fair
at fair at fair
value value
through through
profit or profit or
loss loss
loss loss
Subordinated Debt* (Refer note 17.1) - - - - - - - -
Subordinated Debt- Listed** 967.03 - - 967.03 1,423.74 - - 1,423.74
(Refer note 17.2 & 17.3)
Total (A) 967.03 - - 967.03 1,423.74 - - 1,423.74
Subordinated Liabilities in India 967.03 - - 967.03 1,423.74 - - 1,423.74
Subordinated Liabilities outside India - - - - - - - -
Total (B) 967.03 - - 967.03 1,423.74 - - 1,423.74
*Excludes unpaid (unclaimed) matured debentures of ₹11.98 millions (March 31, 2022: ₹18.62 millions) shown as a part of Other financial liabilities
in Note 18.
**Includes EIR impact of transaction cost; excludes unpaid (unclaimed) matured listed debentures of ₹4.96 millions (March 31, 2022: ₹7.07 millions)
shown as a part of Other financial liabilities in Note 18.
The amortised cost of Subordinated Liabilities in Note 17 above does not include interest accrued but not due aggregating to
₹788.91 millions (March 31,2022: ₹960.06 millions) disclosed separately under Other financial liabilities in Note 18.
17.1 Subordinated Debt

Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking
Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions,2016. The principal amount of outstanding privately placed subordinated debt stood at ₹11.98 millions (March
31,2022: ₹18.62 millions)
XII 01.04.2013 - 07.07.2013 2.82 3.77 66 months 12.67
XI 01.10.2012 - 31.03.2013 4.14 5.47 66 months 12.67-13.39
X 01.04.2012 - 30.09.2012 1.58 2.67 66 months 12.67-13.39
IX 01.11.2011 - 31.03.2012 0.92 1.69 66 months 12.67-13.39
VIII 01.07.2011 - 31.10.2011 1.00 1.22 66 months 12.67
VII 01.04.2011 - 30.06.2011 0.48 0.66 66 months 12.67
VII 08.02.2011 - 31.03.2011 0.08 0.08 66 months 12.67
VII 01.01.2011 - 07.02.2011 0.43 0.48 72 months 11.61
VI 01.07.2010 - 31.12.2010 0.37 0.48 72 months 11.61
V 01.01.2010 - 30.06.2010 0.16 0.76 72 months 11.61
IV 17.08.2009 - 31.12.2009 - 0.89 72 months 11.61
IV 01.07.2009 - 16.08.2009 - 0.05 72 months 12.50
IV 01.07.2009 - 16.08.2009 - 0.40 69 months 12.12
Sub Total 11.98 18.62
Less: Unpaid (Unclaimed) matured 11.98 18.62
debentures shown as a part of Other
financial liabilities
Total - -

Standalone
Financial
Statements
Notes

17.2 Subordinated Debt -Public & Listed
The principal amount of outstanding Unsecured Redeemable Non- Convertible Listed Debentures issued as Subordinated
Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit
taking Company and Deposit taking Company (Reserve Bank) Directions,2016 issued through Public Issue stood at
₹971.32 millions (March 31, 2022: ₹1,330.79 millions).

Interest
Series Date of allotment As at As at Period from the
Rate %
PL 17 24.04.2017 187.17 187.17 96 Months 9.06
PL 16 30.01.2017 317.76 317.76 96 Months 9.06
PL 15 12.05.2016 236.00 236.00 90 Months 9.67
PL 14 20.01.2016 230.39 230.39 87 Months 10.02
PL 13 14.10.2015 - 359.47 84 Months 10.41
Sub Total 971.32 1,330.79
Less: EIR impact of transaction cost 4.29 7.05
Total 967.03 1,323.74
17.3 Subordinated Debt - Private Placement & Listed

The principal amount of outstanding privately placed Unsecured Redeemable Non-Convertible Listed Debentures
issued as Subordinated Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically
Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,2016 stood at NIL
(March 31, 2022:₹100.00 millions)
Interest
Series Date of allotment As at As at Period from the
Rate %
IA 26.03.2013 - 100.00 120 Months 12.35
Total - 100.00
Note 18: Other financial liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
Interest accrued but not due on borrowings 9,054.51 11,478.57
Unpaid (Unclaimed) dividend 9.16 8.60
Unpaid (Unclaimed) matured Non Convertible Debentures and interest accrued thereon 264.02 94.42
Unpaid (Unclaimed) matured Listed Non convertible Debentures and interest accrued thereon 74.81 76.07
Security deposits received 15.63 15.74
Auction surplus refundable 39.91 42.75
Other financial liabilities 106.08 65.86
Total 9,564.12 11,782.01

Notes

Note 19: Provisions
As at As at
Particulars
March 31, 2023 March 31, 2022
Provision in excess of ECL (Refer Note 19.1) 2,953.76 2,953.76
Provision for undrawn commitments 6.88 19.59
Provision for employee benefits
- Gratuity 67.18 128.20
- Compensated absences 380.50 351.12
Provision for unspent expenditure on Corporate Social Responsibility (Refer Note 19.2 and Note 48) 22.83 66.83
Provisions for other losses (Refer Note 19.2) 84.41 78.85
Total 3,515.56 3,598.35
19.1 Provision in excess of ECL represents the provision created on loan assets (including in prior years), which is in excess
of the amounts determined and adjusted against such assets as impairment loss on application of expected credit loss
method as per lnd AS 109 (‘Financial Instruments’), and retained in the books of account as a matter of prudence.
19.2 T he movement in Provisions for unspent expenditure on Corporate Social Responsibility and for other losses during
2022-23 and 2021-22 are as follows:
Provision
for unspent
Provisions for
Particulars expenditure on
other losses
Corporate Social
Responsibility
As at March 31, 2021 120.49 91.36
Additions - 1.94
Reversed - 10.15
Utilised 53.66 4.30
As at March 31, 2022 66.83 78.85
Additions - 10.11
Reversed - 4.55
Utilised 44.00 -
As at March 31, 2023 22.83 84.41
Note 20: Other Non-financial liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
Statutory dues payable 506.90 936.22
Advance interest received on loans 8.04 9.25
Total 514.94 945.47

Standalone
Financial
Statements
Notes

Note 21: Equity share capital
21.1 The reconciliation of equity shares outstanding at the beginning and at the end of the period
As at As at
Particulars
March 31, 2023 March 31, 2022
Authorised
450,000,000 (March 31, 2022: 450,000,000) Equity shares of ₹10/- each 4,500.00 4,500.00
5,000,000 (March 31, 2022: 5,000,000) Preference shares of ₹1000/- each 5,000.00 5,000.00
Issued, subscribed and fully paid up
401,448,231 (March 31, 2022: 401,345,266) Equity shares of ₹10/- each fully paid up 4,014.48 4,013.45
Total Equity 4,014.48 4,013.45
21.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ₹10/- per share. All these shares have the
same rights and preferences with respect to the payment of dividend, repayment of capital and voting. The Company
declares and pays dividends in Indian rupees. The interim dividend is declared and approved by Board of Directors.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.
21.3 Reconciliation of the number of Equity shares and of Equity share capital amount outstanding at the
beginning and at the end of the year
Particulars In Numbers Amount
As at April 01, 2021 401,195,856 4,011.96
As at March 31, 2022 401,345,266 4,013.45
As at March 31, 2023 401,448,231 4,014.48
21.4 Details of Promoter shareholding and Equity shareholders holding more than 5% shares in
the company
% change in % change in
Particulars shareholding shareholding
No. of % holding in No. of % holding in
of Promoters of Promoters
shares held the class shares held the class
during the during the
year year
Sara George 29,036,548 7.23% Nil 29,036,548 7.23% Not Applicable
George Alexander Muthoot (Promoter) 23,630,900 5.89% Nil 23,630,900 5.89% -45.84%
George Jacob Muthoot (Promoter) 43,630,900 10.87% Nil 43,630,900 10.87% Nil
George Thomas Muthoot (Promoter) 43,630,900 10.87% Nil 43,630,900 10.87% Nil
Susan Thomas 29,985,068 7.47% Nil 29,985,068 7.47% Not Applicable
Alexander George 22,289,710 5.55% Nil 22,289,710 5.55% Not Applicable
George M George 22,289,710 5.55% Nil 22,289,710 5.55% Not Applicable

Notes

21.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s) without
payment being received in cash, fully paid up by way of bonus shares and shares bought back.
Fully paid up
pursuant to
Fully paid up
contract(s) Shares bought
Particulars by way of bonus
without payment back
shares
being received
in cash
Equity Shares :
2022-2023 Nil Nil Nil
21.6 Shares reserved for issue under Employee Stock Option Scheme
The Company has reserved 63,485 equity shares (March 31, 2022: 206,865) for issue under the Employee Stock Option
Scheme 2013.
Note 22: Other equity

As at As at
Particulars
March 31, 2023 March 31, 2022
Statutory Reserve
Balance at the beginning of the year 41,428.90 33,520.29
Add: Transfer from Retained earnings 6,947.06 7,908.62
Balance at the end of the year 48,375.96 41,428.90
Securities Premium
Add: Securities premium on share options exercised during the year 36.59 47.26
Debenture Redemption Reserve
Add: Amount transferred from Retained earnings - -
General Reserve
Share option outstanding account
Balance at the beginning of the year 61.74 105.00
Add : Share based payment expenses - (1.98)
Less: Transfer to Securities premium on account of options exercised 32.46 41.28
Less: Transfer to Retained Earnings on account of expiry/lapse of options 9.16 -
Balance at the end of the year 20.12 61.74

Standalone
Financial
Statements
Notes

As at As at
Particulars
March 31, 2023 March 31, 2022
Retained Earnings
Add: Profit for the year 34,735.31 39,543.04
Add : Transfers from share option outstanding account 9.16 -
Less: Appropriation :-
Interim Dividend on equity shares 8,026.91 8,023.92
Tax on dividend on equity shares - -
Transfer to Statutory Reserve 6,947.06 7,908.62
Total appropriations 14,973.97 15,932.54
Other Comprehensive Income
Balance at the beginning of the year (281.95) 185.89
Add: Addition during the year 460.00 (467.84)
Balance at the end of the year 178.06 (281.95)
Total 206,604.80 179,432.27
22.1 Nature and purpose of reserve of Companies Act 2013, the requirement to mandatorily
transfer a specified percentage of the net profit to
(a) Statutory reserve general reserve has been withdrawn. However, the
Statutory Reserve represents the Reserve Fund created amount previously transferred to the general reserve
under Section 45 IC of the Reserve Bank of India Act, can be utilised only in accordance with the specific
1934. Accordingly an amount representing 20% of Profit requirements of Companies Act, 2013.
for the period is transferred to the fund for the year.
(e) Share Options outstanding account
(b) Securities Premium The fair value of equity settled share based payments
This Reserve represents the premium on issue of equity transactions is recognised in the Statement of Profit
shares and can be utilized in accordance with the and Loss with corresponding credit to Share option
provisions of the Companies Act, 2013. outstanding account.
(c) Debenture Redemption Reserve (f) Retained earnings

Pursuant to Rule 18(7)(b)(iii) of the Companies (Share This Reserve represents the cumulative profits of the
Capital and Debentures) Rules, 2014, as amended Company. This Reserve can be utilized in accordance
vide the Companies (Share Capital and Debentures) with the provisions of the Companies Act, 2013.
Amendment Rules dated August 16, 2019, the Company,
being an NBFC registered with the Reserve Bank of India (g) Other Comprehensive Income
under Section 45 IA of the RBI Act, 1934, is not required
Equity instruments through Other Comprehensive
to create a Debenture Redemption Reserve, in respect of
Income
public issue of debentures and debentures issued by it on
a private placement basis. The Company has elected to recognise changes in the
fair value of certain investments in equity securities
(d) General Reserve in other comprehensive income. These changes are
Under the erstwhile Companies Act 1956, general accumulated in the FVOCI equity investments reserve.
reserve was created through an annual transfer of profit The Company transfers amounts from this reserve to
for the period at a specified percentage in accordance retained earnings when the relevant equity securities
with applicable regulations. Consequent to introduction are derecognised.

Notes

Effective portion of Cash Flow Hedges and Cost of Remeasurement of defined benefit plans
Hedging Reserve It represents the gain/(loss) on remeasurement of
Effective portion of cash flow hedges represents the Defined Benefit Obligation and of Plan assets
cumulative gains/(losses) arising on changes in fair value
of the derivative instruments designated as cash flow
22.2 Dividend proposed to be distributed to equity
hedges through OCI. The amount recognized as effective
shareholders for the period
portion of Cash flow hedge is reclassified to profit or loss
when the hedged item affects profit or loss. The company Dividend proposed to be distributed to equity
designates the spot element of foreign currency forward shareholders for the period (not recognised as
contracts as hedging instruments. The changes in the liability)
fair value of forward element of the forward contract
on reporting date is deferred and retained in the cost of Interim dividend for 2022-23 @ ₹22/- per
hedging reserve. equity share 8,831.86
Date of declaration of interim dividend for
the period April 06, 2023
Note 23: Interest income

Year ended March 31, 2023 Year ended March 31, 2022
Interest Interest
income on income on
On Financial On Financial
On Financial financial On Financial financial
Particulars asset asset
asset assets asset assets
measured measured
measured at classified measured at classified
amortised cost at fair value amortised cost at fair value
through OCI through OCI
through profit through profit
or loss or loss
Interest on Loans :
Gold Loan - 100,274.25 - - 107,288.57 -
Personal Loan - 809.34 - - 532.84 -
Corporate Loan - 80.66 - - 25.38 -
Business Loan - 221.13 - - 122.38 -
Staff Loan - 3.84 - - 2.78 -
Loans to subsidiaries - 66.55 - - 56.58 -
Other Loans - 32.14 - - 28.26 -
Interest income from investments - 1,740.95 - - 1,228.09 -
Interest on deposits with bank - 398.36 - - 267.87 -
Other interest income - 58.89 - - 7.53 -
Total - 103,686.11 - - 109,560.28 -

Standalone
Financial
Statements
Notes

Note 24: Net gain on fair value changes
Particulars
March 31, 2023 March 31, 2022
(A) Net gain on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments 672.69 445.03
- Others - 28.90
(B) Gain on fair valuation of equity shares 0.01 -
Total Net gain on fair value changes (C) 672.70 473.93
Fair Value changes:
- Realised 672.69 473.93
- Unrealised 0.01 -
Total Net gain on fair value changes 672.70 473.93
Note 25: Sale of services

Particulars
March 31, 2023 March 31, 2022
Income from Money Transfer business 87.45 121.44
Income from Power Generation - Windmill 3.25 18.25
Total 90.70 139.69
Note 26: Other Income

Particulars
March 31, 2023 March 31, 2022
Bad debt recovered 127.18 72.11
Rental income 6.76 3.73
Others 155.05 84.85
Total 288.99 160.69
Note 27: Finance Costs

On financial On financial
Particulars liabilities liabilities
liabilities liabilities
measured at fair measured at fair
measured at measured at
value through value through
amortised cost amortised cost
Interest on borrowings (other than debt securities) - 26,941.77 - 26,522.63
Interest on debt securities - 9,839.59 - 11,541.30
Interest on subordinated liabilities - 210.04 - 293.69
Total - 36,991.40 - 38,357.62

Notes

Note 28: Impairment on financial instruments
On financial On financial On financial On financial
Particulars instruments instruments instruments instruments
measured at fair measured at measured at fair measured at
value through OCI amortised cost value through OCI amortised cost
Loan Assets - 426.00 - 979.10
Bad Debts Written Off - 169.16 - 289.43
Other Assets - 10.11 - 1.94
Total - 605.27 - 1,270.47
Note 29: Employee Benefits Expenses

Particulars
March 31, 2023 March 31, 2022
Salaries and Wages 11189.08 9,538.51
Contributions to Provident and Other Funds 663.04 661.08
Share based payments to employees - (1.98)
Staff Welfare Expenses 142.29 104.55
Total 11,994.41 10,302.16
Note 30: Depreciation, amortization and impairment

Particulars
March 31, 2023 March 31, 2022
Depreciation of tangible assets 565.38 513.53
Amortization of intangible assets 17.76 25.61
Total 583.14 539.14
Note 31: Other Expenses

Particulars
March 31, 2023 March 31, 2022
Rent 2,486.92 2,349.54
Rates & Taxes 638.28 610.16
Energy Costs 408.76 316.60
Repairs and Maintenance 504.50 568.06
Communication Costs 421.87 497.55
Printing and Stationery 191.73 149.85
Advertisement & Publicity 1,581.18 1,196.62
Directors' Sitting Fee 4.48 4.17
Commission to Non-Executive Directors 10.15 8.82
Auditors' fees and expenses (Refer Note 31.1) 9.32 7.08
Legal & Professional Charges 401.90 282.92
Insurance 83.13 101.40
Internal Audit and Inspection Expenses 144.44 113.55
Vehicle Hire & Maintenance 11.27 9.01
Travelling and Conveyance 365.00 271.12
Business Promotion Expenses 206.16 7.24

Standalone
Financial
Statements
Notes

Particulars
March 31, 2023 March 31, 2022
Bank Charges 101.65 88.42
Business Support Charges 57.54 20.61
Contribution to Political parties 5.58 0.50
Miscellaneous expense 7.69 6.38
Expenditure on Corporate Social Responsibility (Refer Note 48) 957.45 811.40
Total 8,599.00 7,421.00
Note 31.1 Auditors’ fees and expenses:

Particulars
March 31, 2023 March 31, 2022
As Auditor's (including limited review) 7.50 6.50
For Other Services 1.82 0.56
For Reimbursement of Expenses - 0.02
Total 9.32 7.08
Note 32: Income Tax

The components of income tax expense for the year ended March 31, 2023 and year ended March 31, 2022 are:

Particulars
March 31, 2023 March 31, 2022
Current tax 12,069.87 13,586.13
Adjustment in respect of current income tax of prior years (82.45) -
Deferred tax relating to origination and reversal of temporary differences (58.47) (35.63)
Income tax expense reported in statement of profit and loss 11,928.95 13,550.50
Income tax recognised in other comprehensive income (OCI)
Current tax related to items recognised in OCI during the period:
Deferred tax related to items recognised in OCI during the period:
- Fair value changes on equity instruments through other (21.35) 15.48
comprehensive income"
- Effective portion of gain on hedging instruments in cash flow hedges 61.72 (10.15)
Income tax charged to OCI 154.71 (157.35)
In accordance with the provisions of Section 115BAA of the Income Tax Act, 1961, the Company has opted to pay income tax at
a reduced rate of 22% (plus surcharge @ 10% and cess @ 4%).

Notes

Reconciliation of the total tax charge:
The tax charge shown in the Statement of Profit and Loss differ from the tax charge that would apply if all the profits had been
charged at India corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India’s
domestic tax rate for the year ended March 31, 2023 and year ended March 31, 2022 is, as follows:

Particulars
March 31, 2023 March 31, 2022
Accounting profit before tax 46,664.26 53,093.54
At India’s statutory income tax rate of 25.168% (2022: 25.168%) 11,744.46 13,362.58
Adjustments in respect of current income tax of previous year (82.45) -
Expenses disallowed in Income Tax Act 242.38 190.83
Effect of derecognition of previously recognised deferred tax assets due to change in tax rate - -
Income not subject to tax:
Dividend from Indian Company - -
Interest on income tax grouped under Current tax charge 28.34 43.09
Others (3.78) (46.00)
Income tax expense reported in the Statement of Profit and Loss 11,928.95 13,550.50
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
Deferred Tax Assets/(Liabilities)

As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed asset: Timing difference on account of Depreciation and Amortisation 279.75 256.77
On application of Expected Credit Loss method for loan loss provisions and related adjustments as 102.77 66.00
per Ind AS 109 and amortisation of net income under Effective Interest Rate Method not adjusted
under Income Tax Act, 1961
On Fair Value Changes of derivative asset not adjusted under Income Tax Act, 1961 135.20 381.05
On Amortisation of expenses under Effective Interest Rate method for financial liabilities not (74.63) (148.08)
permitted under Income Tax Act, 1961
Net gain on fair valuation of Investments not adjusted under Income Tax Act, 1961 (147.93) (169.27)
On Other Provisions/Disallowances 106.38 98.98
Deferred Tax Assets/(Liabilities) (Net) 401.54 485.45
Reconciliation of deferred tax assets/(liabilities)

As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 485.45 286.47
Tax income/(expense) during the period recognised in Statement of Profit and Loss 58.47 35.63
Tax income/(expense) during the period recognised in OCI (142.38) 163.36
Closing balance 401.54 485.45

Standalone
Financial
Statements
Notes

Note 33: Earnings per Equity share
Particulars
March 31, 2023 March 31, 2022
Net profit attributable to ordinary equity holders 34,735.31 39,543.04
Weighted average number of equity shares for basic earnings per share 401,397,883 401,268,121
Effect of dilution 60,216 196,527
Weighted average number of equity shares for diluted earnings per share 401,458,099 401,464,648
Earnings per equity share:
Basic earnings per share (₹) 86.54 98.55
Diluted earnings per share (₹) 86.52 98.50
Note 34: Assets pledged as security

The carrying amounts of assets pledged as security for secured debt securities as well as for secured borrowings other than
debt securities are as below:
Particulars
March 31, 2023 March 31, 2022
Financial assets
Cash and cash equivalents 64,288.01 91,785.15
Bank Balance other than Cash and cash equivalent 140.00 141.20
Trade Receivables 16.06 21.45
Loans(excluding the impact of EIR/ECL) 650,630.34 601,244.61
Investments(maturing within one year) 51.89 35.18
Other Financial assets 350.48 300.18
Non-financial Assets
Other non financial assets 237.35 217.65
Total 715,714.13 693,745.42
Above assets have been provided as security on first pari-passu floating charge basis for secured debt securities as well as for
secured borrowings other than debt securities excluding term loans taken by specific charge on vehicles.

Particulars
March 31, 2023 March 31, 2022
Property, Plant and Equipment
Building 5.54 7.44
Vehicle 5.39 15.43
Total 10.93 22.87
Building as above have been provided as security on first pari-passu floating charge basis for specific secured debt securities.
Vehicles as above have been provided as security for vehicle loans

Notes

Note 35: Retirement Benefit Plan
Defined Contribution Plan

The Company makes contributions to Provident Fund which are defined contribution plan for qualifying employees. The
Company recognized ₹434.13 millions (March 31, 2022: ₹404.44 millions) for Provident Fund contributions in the Statement
of Profit and Loss.
Defined Benefit Plan

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every
employee who has completed five years or more of service gets a gratuity on leaving the service of the company at 15 days
salary (last drawn salary) for each completed year of service.
Gratuity liability is funded through a Gratuity Fund managed by Kotak Mahindra Old Mutual Life Insurance Limited and ICICI
Prudential Life Insurance Company Limited.
The following tables summarise 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.
Net liability/(assets) recognised in the Balance Sheet

As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of funded obligations 1,311.44 1,327.68
Fair value of plan assets (1,244.25) (1,199.48)
Defined Benefit obligation/(asset) 67.19 128.20
Net benefit expense recognised in Statement of Profit and Loss

As at As at
Particulars
March 31, 2023 March 31, 2022
Current service cost 162.53 160.27
Net Interest on net defined benefit liability/ (asset) 9.12 4.42
Net benefit expense 171.65 164.68
Details of changes in present value of defined benefit obligations as follows:

As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of defined benefit obligation at the beginning of the year 1,327.68 1,257.31
Interest cost on benefit obligations 82.32 72.92
Re-measurements: - -
a. Actuarial loss/ (gain) arising from changes in financial assumptions (65.65) (30.07)
b. Actuarial loss/ (gain) arising from experience over the past years (8.77) (2.27)
Benefits paid (186.67) (130.48)
Present value of defined benefit obligation at the end of the year 1,311.44 1,327.68

Standalone
Financial
Statements
Notes

Details of changes in fair value of plan assets are as follows: -
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets at the beginning of the year 1,199.48 1,182.27
Interest income on plan assets 73.20 68.51
Employer contributions 183.71 87.67
Benefits paid (186.67) (130.48)
Re-measurements:
a. Return on Plan assets, excluding amount included in net interest on the net defined benefit (25.47) (8.48)
liability/(asset)
Fair value of plan assets as at the end of the year 1,244.25 1,199.48
Actual return on plan assets 47.73 60.03
Expected employer contributions for the coming year 150.00 150.00
Remeasurement gain/ (loss) in Other Comprehensive Income (OCI)

Particulars
March 31, 2023 March 31, 2022
Re-measurements on defined benefit obligation
Actuarial gain/(loss) arising from changes in financial assumptions 65.65 30.07
Actuarial gain/(loss) arising from experience over the past years 8.77 2.27
Re-measurements on plan assets
Return on Plan assets, excluding amount included in net interest on the net defined benefit (25.47) (8.48)
liability/(asset)
Actuarial gain /(loss) (through OCI) 48.95 23.86
The principal assumptions used in determining gratuity obligations for the Company’s plans are shown
below:
As at As at
Particulars
March 31, 2023 March 31, 2022
Salary Growth Rate 7.00% p.a. 7.00% p.a.
Discount Rate 7.10% p.a. 6.20% p.a.
Withdrawal Rate 15.00% p.a. 15.00% p.a.
Mortality IALM 2012-14 Ult. IALM 2012-14 Ult.
Interest rate on net DBO/ (Assets) 6.20% p.a. 5.80% p.a.
Expected weighted average remaining working life 5 years 5 years

Notes

Investments quoted in active markets:
As at As at
Particulars
March 31, 2023 March 31, 2022
Equity instruments 0.00% 0.00%
Debt instruments 0.00% 0.00%
Real estate 0.00% 0.00%
Derivatives 0.00% 0.00%
Investment Funds with Insurance Company 100.00% 100.00%
Of which, Unit Linked 100.00% 100.00%
Of which, Traditional/ Non-Unit Linked 0.00% 0.00%
Asset-backed securities 0.00% 0.00%
Structured debt 0.00% 0.00%
Cash and cash equivalents 0.00% 0.00%
Total 100.00% 100.00%
None of the assets carry a quoted market price in an active market or represent the entity’s own transferable financial
instruments or are property occupied by the entity.
A quantitative sensitivity analysis for significant assumptions as at March 31, 2023 and March 31, 2022
are as shown below:
As at As at
Assumptions Sensitivity Level
March 31, 2023 March 31, 2022
Discount Rate Increase by 1% (66.30) (69.90)
Discount Rate Decrease by 1% 73.32 77.67
Further Salary Increase Increase by 1% 72.68 76.31
Further Salary Increase Decrease by 1% (66.96) (70.03)
Employee turnover Increase by 1% (2.65) (5.75)
Employee turnover Decrease by 1% 2.68 6.10
Mortality Rate Increase in expected lifetime by 1 year 0.06 0.06
Mortality Rate Increase in expected lifetime by 3 years 0.15 0.15
The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other
parameters constant. There are no changes from the previous period to the methods and assumptions underlying the sensitivity
analyses. The weighted average duration of the defined benefit obligation as at March 31, 2023 is 5 years (2022: 5 years).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.
Description of Asset Liability Matching (ALM) Policy

The Company primarily deploys its gratuity investment assets in insurer-offered debt market-linked plans. As investment
returns of the plan are highly sensitive to changes in interest rates, the liability movement is broadly hedged by asset movement
if the duration is matched.
Description of funding arrangements and funding policy that affect future contributions
The liabilities of the fund are funded by assets. The company aims to maintain a close to full-funding position at each Balance
Sheet date. Future expected contributions are disclosed based on this principle.

Standalone
Financial
Statements
Notes

The principal assumptions used in determining leave encashment obligations for the Company’s plans are
shown below:
The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for
the estimated term of the obligations. The estimate of future salary increases considered, takes into account the inflation,
seniority, promotion, increments, mortality, withdrawals and other relevant factors.
Note 36: 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 and considering contractual terms. For Loans and advances to customers, maturity analysis is based on expected
repayment behaviour.
Particulars Within 12 After 12 Within 12 After 12
Total Total
months months months months
Assets
Financial assets
Cash and cash equivalents 64,288.01 - 64,288.01 91,785.15 - 91,785.15
Bank Balance other than above 266.75 57.20 323.95 640.63 3.35 643.98
Derivative Financial Instruments - - - 605.01 - 605.01
Trade receivables 16.06 - 16.06 21.44 - 21.44
Loans 605,961.35 37,011.36 642,972.71 579,927.26 19,477.94 599,405.20
- Adjustment on account of EIR/ECL - - (323.91) - - (5,562.86)
Investments 51.90 13,116.69 13,168.59 35.18 13,169.65 13,204.83
Other financial assets 348.52 987.67 1,336.19 299.82 925.16 1,224.98
Deferred tax assets (net) - 401.54 401.54 - 485.45 485.45
Property, plant and equipment - 2,682.10 2,682.10 - 2,636.92 2,636.92
Capital work-in-progress - 674.27 674.27 - 456.48 456.48
Other intangible assets - 35.59 35.59 - 37.36 37.36
Other non financial assets 509.04 114.00 623.04 590.36 12.58 602.94
Total assets 671,441.63 55,080.42 726,198.14 673,904.85 37,204.89 705,546.88

Total Total
Liabilities
Financial Liabilities
Derivative financial instruments 1,892.41 - 1,892.41 1,326.58 3,471.39 4,797.97
Trade payables 1,257.70 - 1,257.70 1,143.66 - 1,143.66
Other payables 701.68 - 701.68 367.92 - 367.92
Debt Securities 52,444.43 85,094.41 137,538.84 35,079.57 90,149.39 125,228.96
- Adjustment on account of EIR - - (155.21) - - (250.08)
Borrowings (other than debt securities) 269,754.39 89,367.94 359,122.33 246,854.78 125,186.32 372,041.10
Subordinated Liabilities 466.39 504.93 971.32 459.47 971.32 1,430.79
Other Financial liabilities 7,785.13 1,778.99 9,564.12 9,398.79 2,383.22 11,782.01

Notes

Total Total
Non-financial Liabilities
Current tax liabilities (net) 789.38 - 789.38 1,353.28 - 1,353.28
Provisions 3,149.17 366.39 3,515.56 3,198.45 399.90 3,598.35
Deferred tax liabilities (net) - - - - - -
Other non-financial liabilities 514.94 - 514.94 945.47 - 945.47
Total Liabilities 338,755.62 177,112.66 515,578.86 300,127.97 222,561.54 522,101.16
Net 332,686.01 (122,032.24) 210,619.28 373,776.88 (185,356.65) 183,445.72
Note 37: Change in liabilities arising from financing activities disclosed as per Ind AS 7, Cash flow
statements
As at Changes in As at
Particulars Cash Flows Others
April 01, 2022 fair value March 31, 2023
Debt Securities 124,978.88 12,309.88 - 94.87 137,383.63
Borrowings other than debt securities 371,709.88 (14,184.65) 1,265.88 201.30 358,992.41
Subordinated Liabilities 1,423.74 (459.47) - 2.76 967.03
Total liabilities from financing activities 498,112.50 (2,334.24) 1,265.88 298.93 497,343.07
As at Changes in As at
April 01, 2021 fair value March 31, 2022
Debt Securities 137,960.58 (13,062.49) - 80.79 124,978.88
Borrowings other than debt securities 319,405.81 49,711.83 2,530.40 61.84 371,709.88
Subordinated Liabilities 2,096.37 (675.69) - 3.06 1,423.74
Total liabilities from financing activities 459,462.76 35,973.65 2,530.40 145.69 498,112.50
Note 38: Contingent liabilities, commitments and leasing arrangements
(A) Contingent Liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
(a) Claims against the company not acknowledged as debt
(i) Income Tax Demands 53.66 56.24
(ii) Service Tax Demands 4,995.05 4,995.05
(iii) Others 426.97 426.97
(iv) Disputed claims against the company under litigation
not acknowledged as debts 89.77 71.26
(b) Guarantees - Counter Guarantees Provided to Banks 88.01 88.19
(c) Corporate Guarantee issued in favour of National Housing Bank for loan availed by wholly 1,940.91 1,466.41
owned subsidiary M/s Muthoot Homefin (India) Limited [Amount of Guarantee I2750
million (I2250 million as at March 31,2022)]
(d) Others - -

Standalone
Financial
Statements
Notes

(B) Commitments
As at As at
Particulars
March 31, 2023 March 31, 2022
Estimated amount of contracts remaining to be executed on capital account, net of advances 223.46 324.02
and not provided for
Commitments related to loans sanctioned but undrawn 9,549.28 18,461.96
(C) Lease Disclosures
Finance Lease :
The Company has not taken or let out any assets on financial lease.
Operating Lease :
Lease disclosures under Ind AS 116
All operating lease agreements entered into by the Company are cancellable in nature. Consequently, the Company has not
recognised any right-of-use asset and lease liability during the year.
Lease rentals received for assets let out on operating lease ₹6.76 millions (₹3.73 millions for the year ended March
31, 2022) are recognized as income in the Statement of Profit and Loss under the head ‘Other Income’ and lease rental
payments for assets taken on an operating lease ₹2,486.92 millions (₹2,349.54 millions for the year ended March 31,
2022) are recognized as ‘Rent’ in the Statement of Profit and Loss.
Note 39: Related Party Disclosures

Names of Related parties
(A) Subsidiaries
1. Asia Asset Finance PLC, Sri Lanka
2. Muthoot Homefin (India) Limited
3. Belstar Microfinance Limited (formerly Belstar Microfinance Private Limited)
4. Muthoot Insurance Brokers Private Limited
5. Muthoot Money Limited
6. Muthoot Asset Management Private Limited
7. Muthoot Trustee Private Limited

Notes
(B) Key Management Personnel (Directors) Designation

1. George Jacob Muthoot Chairman & Whole-time Director
2. George Thomas Muthoot Whole-time Director
3. George Alexander Muthoot Managing Director
4. Alexander George Whole-time Director
5. George Muthoot George Whole-time Director
6. George Muthoot Jacob Whole-time Director
7. George Alexander Whole-time Director
8. Jose Mathew Independent Director
9. Justice (Retd.) Jacob Benjamin Koshy Independent Director
10. Pratip Chaudhuri Independent Director (Retired on August 31, 2022)
11. Vadakkakara Antony George Independent Director
12. Ravindra Pisharody Independent Director
13. Usha Sunny Independent Director
14. Abraham Chacko Independent Director
15. Chamacheril Mohan Abraham Independent Director (w.e.f August 31, 2022)
(C) Enterprises owned or significantly influenced by key management personnel or their relatives (Directors)
1. Muthoot Vehicle & Asset Finance Limited 11. Muthoot Forex Limited
2. Xandari Resorts Private Limited 12. X andari Pearl Beach Resorts Private Limited
(Formerly known as Muthoot Leisure And Hospitality Services (Formerly known as Marari Beach Resorts Private
Private Limited) Limited)
3. MGM Muthoot Medical Centre Private Limited 13. Muthoot Health Care Private Limited
4. Muthoot Securities Limited 14. Muthoot Properties & Investments
5. Muthoot Housing & Infrastructure 15. Muthoot Precious Metals Corporation
6. Muthoot Gold Bullion Corporation 16. GMG Associates
7. Muthoot M George Institute of Technology 17. St. Georges Educational Society
8. Emsyne Technologies Private Limited 18. M.G. George Muthoot Charitable Trust
(Formerly known as Muthoot Systems & Technologies (Formerly known as Muthoot M George Charitable Trust)
Private Limited)
9. Muthoot Educational Trust 19. Muthoot Finance Education Trust (Tamilnadu)
10. Geem Marketing Services Private Limited
(Formerly known as Muthoot Marketing Service Private
Limited)

Standalone
Financial
Statements
Notes

(D) Relatives of Key Management Personnel (Directors)
Name of Relative Relationship Key Management Personnel
Elizabeth Jacob Spouse George Jacob Muthoot
Reshma Susan Jacob Daughter George Jacob Muthoot
Susan Thomas Spouse George Thomas Muthoot
Anna Thomas, Tania Thomas Daughter George Thomas Muthoot
Anna Alexander Spouse George Alexander Muthoot
Eapen Alexander Son George Alexander Muthoot
Radhika George Verghese, Swathy Eapen Son's wife George Alexander Muthoot
Sara George Mother Alexander George, George Muthoot George
Radhika George Verghese Spouse George Alexander
Leela Zachariah Sister George Alexander Muthoot, George Jacob Muthoot,
George Thomas Muthoot
Sindhu Mohan Spouse Chamacheril Mohan Abraham
(E) Key Management Personnel (other than Directors) Designation

1. Oommen Mammen Kaithayil Chief Financial Officer
2. Rajesh Achutha Warrier Company Secretary

Key Management Personnel Relatives of Key Management
(Directors) Personnel (Directors)
Particulars
Year Ended Year Ended Year Ended Year Ended
Purchase of Travel Tickets for Company Executives/ Directors/ - - - -
Customers
Accommodation facilities for Company Executives/ Clients/ Customers - - - -
Staff Welfare expense - - - -
Complementary Medical Health Check Up for Customers/ Employees - - - -
Brokerage paid for NCD Public Issue - - - -
Professional Charges Paid - - - -
Advertisement Expenses - - - -
Expenditure on Corporate Social Responsibility (includes payments - - - -
made on behalf of beneficiaries)
Foreign Currency purchased for travel - - - -
Interest paid on Borrowings 444.22 673.85 411.91 505.93
Interest paid on NCD - - 5.61 0.52
Interest paid on NCD - Listed 15.30 24.14 5.45 7.48
Directors Remuneration 950.18 815.68 - -
Commission and sitting fee to Non-executive Directors 14.63 12.99 - -
Salaries and Allowances - - 20.70 41.92
Loans accepted 8,279.94 5,751.92 4,927.32 4,910.81
Loans repaid 10,573.45 7,762.14 6,209.51 2,992.13
Purchase of Listed NCD of the Company 3,827.00 1,868.00 3,694.64 300.00
Redemption of NCD of the Company - - 5.00 -

Notes

Particulars
Redemption of Listed NCD of the Company 2,669.52 245.99 1,502.42 1,038.95
Interest Received on Loan - - - -
Loan Given - - - -
Loan Recovered - - - -
Rent paid - - 2.09 1.46
Rent received - - - -
Rent deposit given - - - -
Rent deposit repaid - - - -
Dividend paid 3,760.94 3,063.65 2,134.72 2,838.97
Dividend Received - - - -
Commission Received on Money Transfer business - - - -
Service Charges Collected - - - -
Purchase of Fixed asset by company - - - -
Sale of Fixed asset by company - - - -
Investment in Equity shares of Subsidiary companies - - - -
Investment in Preference shares of Subsidiary companies - - - -
Security deposit accepted - - - -
Security deposit received, adjusted against dues - - - -
Corporate Guarantee given - - - -

Entities over which Key
Management Personnel and their
Subsidiaries
relatives are able to exercise
Particulars significant influence (Directors)
Purchase of Travel Tickets for Company Executives/ Directors/ - 0.02 - -
Customers
Accommodation facilities for Company Executives/ Clients/ Customers 12.90 7.52 - -
Staff Welfare expense 0.11 0.18 - -
Complementary Medical Health Check Up for Customers/ Employees 0.88 - - -
Brokerage paid for NCD Public Issue 5.49 1.24 - -
Professional Charges Paid 4.50 - - -
Advertisement Expenses - 0.33 - -
Expenditure on Corporate Social Responsibility (includes payments 732.79 568.31 - -
Foreign Currency purchased for travel 0.92 0.17 - -
Interest paid on Borrowings 0.24 0.44 - -
Interest paid on NCD - - - -
Interest paid on NCD - Listed 28.84 31.45 - -
Directors Remuneration - - - -
Commission and sitting fee to Non-executive Directors - - - -
Salaries and Allowances - - - -

Standalone
Financial
Statements
Notes

Subsidiaries
Loans accepted - - - -
Loans repaid 2.24 2.05 - -
Purchase of Listed NCD of the Company 373.81 141.02 - -
Redemption of NCD of the Company - - - -
Redemption of Listed NCD of the Company 87.09 194.73 - -
Interest Received on Loan - - 66.55 56.58
Loan Given - - 2,600.00 1,110.00
Loan Recovered - - 480.00 2,910.00
Rent paid 26.13 25.26 - 0.14
Rent received 2.26 2.00 3.66 0.94
Rent deposit repaid 0.20 - - -
Dividend paid - - - -
Dividend Received - - 14.41 7.88
Commission Received on Money Transfer business 3.49 3.99 - -
Service Charges Collected 1.74 1.76 0.05 0.06
Purchase of Fixed asset by company - - - 0.34
Sale of Fixed asset by company - - - 29.05
Investment in Equity shares of Subsidiary companies - - 50.00 480.00
Investment in Preference shares of Subsidiary companies - - - 145.96
Corporate Guarantee given - - 500.00 -

Key Management Personnel
Others*
(other than Directors)
Particulars
Purchase of Travel Tickets for Company Executives/ Directors/ - - - -
Customers
Accommodation facilities for Company Executives/ Clients/ Customers - - - -
Staff Welfare expense - - - -
Complementary Medical Health Check Up for Customers/ Employees - - - -
Brokerage paid for NCD Public Issue - - - -
Professional Charges Paid - - - -
Advertisement Expenses - - - -
Expenditure on Corporate Social Responsibility (includes payments - - - -
Foreign Currency purchased for travel - - - -
Interest paid on Borrowings - - - -
Interest paid on NCD - - - -

Notes

Others*
Particulars
Interest paid on NCD - Listed 0.09 0.09 0.27 0.27
Directors Remuneration - - - -
Commission and sitting fee to Non-executive Directors - - - -
Salaries and Allowances 24.17 22.03 - -
Loans accepted - - - -
Loans repaid - - - -
Purchase of Listed NCD of the Company - - 5.00 -
Redemption of NCD of the Company - - - -
Redemption of Listed NCD of the Company - - - -
Interest Received on Loan - - - -
Loan Given - - - -
Loan Recovered - - - -
Rent paid - - - -
Rent received - - - -
Rent deposit repaid - - - -
Dividend paid 1.10 1.91 - -
Dividend Received - - - -
Commission Received on Money Transfer business - - - -
Service Charges Collected - - - -
Purchase of Fixed asset by company - - - -
Sale of Fixed asset by company - - - -
Investment in Equity shares of Subsidiary companies - - - -
Investment in Preference shares of Subsidiary companies - - - -
Corporate Guarantee given - - - -
*Others refers to relatives of Key Management Personnel (Other than Directors)

Particulars
As at As at As at As at
Investments in Equity Shares - - - -
Investments in Preference Shares - - - -
NCD - - - (5.00)
NCD - Listed (4,346.48) (3,183.49) (4,025.45) (1,827.23)
Security Deposit - - - -
Rent Deposit - - - -
Borrowings (2,976.22) (5,269.73) (3,173.92) (4,456.11)
Directors Remuneration Payable (288.62) (279.93) - -
Commission payable to Non-executive Directors (9.14) (8.45) - -

Standalone
Financial
Statements
Notes

Particulars
Interest payable on NCD - - - (1.45)
Interest payable on Borrowings - - - -
Corporate guarantee - - - -
Trade Payables - - - -
Loans - - - -
Trade Receivables - - - -
Other financial assets - - - -
Amounts payable (net) to related parties (7,620.46) (8,741.60) (7,199.37) (6,289.79)

Subsidiaries
Investments in Equity Shares 392.55 331.92 9,272.33 9,222.33
Investments in Preference Shares - - 145.96 145.96
NCD - - - -
NCD - Listed (553.94) (267.23) - -
Security Deposit (10.00) (10.00) - -
Rent Deposit 13.94 14.14 - -
Borrowings (1.54) (3.78) - -
Directors Remuneration Payable - - - -
Commission payable to Non-executive Directors - - - -
Interest payable on NCD - - - -
Interest payable on Borrowings (0.01) (0.02) - -
Corporate Guarantee - - (2,750.00) (2,250.00)
Trade Payables (0.11) (0.11) - -
Loans - - 2,600.00 480.00
Trade Receivables 0.28 0.38 - -
Other financial assets 0.17 0.32 - 0.14
Amounts payable (net) to related parties (158.66) 65.62 9,268.29 7,598.43

Notes

Others*
Particulars
Investments in Equity Shares - - - -
Investments in Preference Shares - - - -
NCD - - - -
NCD - Listed (1.20) (1.20) (8.00) (3.00)
Security Deposit - - - -
Rent Deposit - - - -
Borrowings - - - -
Directors Remuneration Payable - - - -
Commission payable to Non-executive Directors - - - -
Interest payable on NCD - - - -
Interest payable on Borrowings - - - -
Corporate guarantee - - - -
Trade Payables - - - -
Loans - - - -
Trade Receivables - - - -
Other financial assets - - - -
Amounts payable (net) to related parties (1.20) (1.20) (8.00) (3.00)
Note:
a) Related parties and the transactions have been identified on the basis of the declaration received by the management and
other records available.
Compensation of key management personnel of the Company:

Key management personnel are those individuals who have the authority and responsibility for planning and exercising power
to directly or indirectly control the activities of the Company and its employees. The Company considers the members of the
Board of Directors which include independent directors (and its sub-committees) to be key management personnel for the
purposes of IND AS 24 Related Party Disclosures.

Particulars
March 31, 2023 March 31, 2022
Short–term employee benefits 964.81 828.67
Total 964.81 828.67
The Company has included Key Managerial Personnel defined under Section 2(51) of the Companies Act, 2013 other than
Directors as Key Management Personnel (other than Directors) as per the disclosure requirements under RBI’s Scale Based
Regulation for NBFCs.

Standalone
Financial
Statements
Notes

Note 40: Capital
Capital Management
The primary objective of the Company’s capital management policy is to ensure that the Company complies with externally
imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support its business
and to maximise shareholder value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and
requirements of the financial covenants. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes have been
made to the objectives, policies and processes from the previous years. However, they are under constant review by the Board.
As at As at
Regulatory capital
March 31, 2023 March 31, 2022
Common Equity Tier1 capital (CET1) 208,943.81 182,960.89
Other Tier 2 capital instruments (CET2) 5,130.36 5,502.37
Total capital 214,074.17 188,463.26
Risk weighted assets 673,758.71 628,762.36
CET1 capital ratio 31.01% 29.10%
CET2 capital ratio 0.76% 0.87%
Total capital ratio 31.77% 29.97%
Regulatory capital consists of CET1 capital, which comprises share capital, share premium, statutory reserve, share option
outstanding account, retained earnings including current year profit less accrued dividends. Certain adjustments are made to
Ind AS–based results and reserves, as prescribed by the Reserve Bank of India. The other component of regulatory capital is
other Tier 2 Capital Instruments.
Note 41: Fair Value Measurement

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.
Fair Value Hierarchy of financial instruments measured at fair value
The fair value measurement hierarchy for financial instruments measured at fair value as at March 31, 2023 is as
follows:
At Fair Value Through Profit or Loss
Particulars
Level-1 Level-2 Level-3 Total
Investments 0.03 - - 0.03
At Fair Value Through Other Comprehensive Income

Particulars
Investments 452.03 1,423.63 - 1,875.66
Derivative Financial Instruments (assets) - - - -
Derivative Financial Instruments (liabilities) - 1,892.41 - 1,892.41

Notes

The fair value measurement hierarchy for financial instruments measured at fair value as at March 31, 2022 is as
follows:
Particulars
Investments 0.02 - - 0.02

Particulars
Investments 630.50 1,329.97 - 1,960.47
Derivative Financial Instruments (assets) - 605.01 - 605.01
Valuation methodologies of financial instruments measured at fair value

Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at
as under:
Investments at fair value through profit or loss

For investments at fair value through profit and loss, valuation is done using quoted prices from active markets at the
measurement date. The equity instruments which are actively traded on public stock exchanges with readily available active
prices on a regular basis are classified as Level 1.
Derivative Financial Instruments (assets/liabilities) at fair value through other comprehensive income
The financial assets/liabilities on derivative contracts have been valued at fair value through other comprehensive income
using closing rate and is classified as Level 2.
Investments at fair value through other comprehensive income

Equity instruments in non-listed entities are initially recognised at transaction price and re-measured as per fair valuation
report on a case-by-case basis and classified as Level 2. The equity instruments which are actively traded on public stock
exchanges with readily available active prices on a regular basis are classified as Level 1.
Financial instruments not measured at fair value

Set out below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments that
are initially measured at fair value and subsequently carried at amortised cost in the financial statements. This table does not
include the fair values of investments in subsidiaries measured at cost.
Carrying Value Fair Value
Particulars Level As at As at As at As at
Financial assets
Cash and cash equivalents 1 64,288.01 91,785.15 64,288.01 91,785.15
Bank Balance other than above 1 323.95 643.98 323.95 643.98
Trade receivables 3 16.06 21.44 16.06 21.44
Loans 3 642,648.80 593,842.34 642,648.80 593,842.34
Investments- at amortised cost 1 1,874.62 1,876.06 1,808.12 1,843.08
Other Financial assets 3 1,336.19 1,224.98 1,336.19 1,224.98
Financial assets 710,487.63 689,393.95 710,421.13 689,360.97

Standalone
Financial
Statements
Notes

Trade Payables 3 1,959.38 1,511.58 1,959.38 1,511.58
Debt securities 2 137,383.63 124,978.88 138,247.17 129,626.23
Borrowings (other than debt securities) 2 358,992.41 371,709.88 358,992.41 371,709.88
Subordinated liabilities 2 967.03 1,423.74 967.03 1,423.74
Other financial liabilities 3 9,564.12 11,782.01 9,564.12 11,782.01
Financial Liabilities 508,866.57 511,406.09 509,730.11 516,053.44
Valuation methodologies of financial instruments not measured at fair value
Short-term financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts,
which are net of impairment, are a reasonable approximation of their fair value. Such instruments include cash and cash
equivalents, trade receivables, balances other than cash and cash equivalents and trade payables without a specific maturity.
Loans and advances to customers

The fair values of loans and receivables are estimated by discounted cash flow models that incorporate assumptions for credit
risks, probability of default and loss given default estimates. Since comparable data is not available, Credit risk is derived using
historical experience, management view and other information used in its collective impairment models.
Fair values of portfolios are calculated using a portfolio-based approach, grouping loans as far as possible into homogenous
groups based on similar characteristics i.e., type of loan. The Company then calculates and extrapolates the fair value to
the entire portfolio using effective interest rate model that incorporate interest rate estimates considering all significant
characteristics of the loans. The credit risk is applied as a top-side adjustment based on the collective impairment model
incorporating probability of defaults and loss given defaults. Hence, the carrying amount of such financial assets at amortised
cost net of impairment loss allowance is of reasonable approximation of their fair value.
Investments- at amortised cost

For Government Securities, the market value of the respective Government stock as on the date of reporting has been considered
for fair value computations.
Debt Securities
The fair value of debt securities is estimated by a discounted cashflow model incorporating interest rate estimates from
market observable data such as secondary prices for its traded debt itself.
Financial liabilities at amortised cost

The fair values of financial liabilities held-to-maturity (financial liabilities other than trade payables and debt securities) are
estimated using effective interest rate model based on contractual cash flows using actual yields. Since the cost of borrowing
on the reporting date is not expected to be significantly different from the actual yield considered under effective interest
rate model, the carrying value of such financial liabilities at amortised cost is considered a reasonable approximation of their
fair value.

Notes

Note 42: Risk Management The Company addresses credit risk through
The Company’s principal financial liabilities comprise following processes:
borrowings and trade and other payables. The main purpose
of these financial liabilities is to finance and support the a) Credit risk on Gold loan is considerably reduced as
Company’s operations. The Company’s principal financial collateral is in the form of Gold ornaments which
assets include loans, investments, cash and cash equivalents can be easily liquidated and there is only a distant
and other receivables that are derived directly from its possibility of losses due to adequate margin of 25%
operations. As a financial lending institution, Company is or more retained while disbursing the loan. Credit
exposed to various risks that are related to lending business risk is further reduced through a quick but careful
and operating environment. The principal objective in collateral appraisal and loan approval process.
Company’s risk management processes is to measure and Hence overall, the Credit risk is normally low.
monitor the various risks that Company is subject to and to b) Sanctioning powers for Gold Loans is delegated to
follow policies and procedures to address such risks. various authorities at branches/controlling offices.
Sanctioning powers are used only for granting loans
The Company’s Risk Management Committee of the Board of for legally permitted purposes. The maximum Loan
Directors constituted in accordance with the Reserve Bank of to Value does not exceed the limit stipulated by the
India regulations has overall responsibility for overseeing the Reserve Bank of India under any circumstances.
implementation of the Risk Management Policy. The committee
meets at least twice in a year to review the Risk Management c) Gold ornaments brought for pledge is the primary
practices. Risk Management department periodically places responsibility of Branch Manager. Branch
its report to the committee for review. The committee’s executives should enquire with the customers
suggestions for improving the Risk Management Practices are about the ownership of the ornaments being
implemented by the Risk Management department. pledged for loan and the loan should be granted
only after they are convinced about the genuineness
Risk Management department shall be responsible for of the customer and his capacity to own that much
the following: quantity of gold. In addition to the above, customers
are also required to sign a declaration of ownership
a) Identifying the various risks associated with the of ornaments offered as security for the loan. Extra
activities of the Company and assessing their impact on care is taken if the gold jewellery brought for pledge
the business. by any customer at any one time or cumulatively
is more than 20 gm. The declaration should also
b) Measuring the risks and suggesting measures to contain an explanation specifically as to how the
effectively mitigate the risks. ownership was vested with the customer.
However, the primary responsibility for managing the d) Auctions are conducted as per the Auction Policy of
various risks on a day to day basis will be with the heads of the Company and the guidelines issued by Reserve
the respective business units of the Company.” Bank of India. Auction is generally conducted
before loan amount plus interest exceeds realizable
The Company is generally exposed to credit risk, liquidity value of gold. After reasonable time is given to the
risk, market risk and operational risk. customers for release after loan becomes overdue
and on exhausting all efforts for persuasive
I) Credit Risk recovery, auction is resorted to as the last measure
in unavoidable cases. Company has the right to
Credit Risk arises from the risk of loss that may occur
recover dues remaining evenafter set off of amount
from the default of Company’s customers under loan
received on auctions from the customer. Any excess
agreements. Customer defaults and inadequate collateral
amount received on auctions over and above the
may lead to loan losses.
dues are refunded to the customer.

Standalone
Financial
Statements
Notes

e) In case of loans other than Gold Loan, loans are Definition of default and cure
given whether with primary/collateral security, The Company considers a financial instrument as
like secured loans or without any primary/ defaulted and therefore Stage 3 (credit-impaired) for
collateral security like unsecured loans, more than Expected Credit Loss (ECL) calculations in all cases
ordinary care is taken such that loans are granted when the borrower becomes 91 days past due including
only to persons/firms/companies of repute with the due date on its contractual payments.
credit worthiness, future cash flows to repay the
loan and track record. As a part of a qualitative assessment of whether a
customer is in default, the Company also considers a
Impairment Assessment variety of instances that may indicate unlikeness to
pay. When such events occur, the Company carefully
The Company is mainly engaged in the business of
considers whether the event should result in treating the
providing gold loans. The tenure of the loans generally is
customer as defaulted and therefore assessed as Stage 3
for 12 months.
for ECL calculations.
The Company also provides unsecured personal loans to

It is the Company’s policy to consider a financial
salaried individuals and unsecured loans to traders and
instrument as ‘cured’ and therefore re-classified out of
self employed. The tenure of the loans ranges from 12
Stage 3 only when none of the default criteria have been
months to 60 months.
present . The decision whether to classify an asset as
Stage 2 or Stage 1 once cured depends on the updated
The Company also provides loans to corporate entities
credit grade, at the time of the cure, and whether this
which are secured/ unsecured for periods upto 3 years.
indicates there has been a significant increase in credit
risk compared to initial recognition.

The Company’s impairment assessment and
measurement approach is set out in this note. It should
be read in conjunction with the Summary of significant
accounting policies.
Company’s internal credit rating grades and staging criteria for loans are as follows:
Loans Days
past due (DPD)
Rating Stages
including the due
date
High grade Not yet due Stage 1
Standard grade 1-30 DPD Stage 1
Sub-standard grade 31-60 DPD Stage 2
Past due but not impaired 61- 90 DPD Stage 2
Individually impaired 91 DPD or More Stage 3
Exposure at Default (EAD)

The Exposure at Default is an estimate of the exposure at a future default date, considering expected changes in the
exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or
otherwise, expected drawdowns on committed facilities, and accrued interest.

Notes

Probability of Default (PD)
The Probability of Default is an estimate of the likelihood of default over a given time horizon. For Stage 1 financial assets,
the Company assesses the possible default events within 12 months for the calculation of the 12 month ECL. For Stage
2 and Stage 3 financial assets, the exposure at default is considered for events over the lifetime of the instruments. The
Company uses historical information wherever available to determine PD. PD is calculated using Incremental 91 DPD
approach considering fresh slippage using historical information. Where historical information is not available, the PD/
default rates as stated by external reporting agencies is considered.

Portfolio
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Gold Loan 8.47% 8.47% 100% 9.21% 9.21% 100%
Personal Loan 0.27% 15.13% 100% 0.29% 16.23% 100%
Corporate Loan 6.43% 6.43% 100% 10.41% 10.41% 100%
Business Loan 0.26% 16.15% 100% 0.30% 19.04% 100%
Staff Loan 0.00% 0.00% 100% 0.00% 0.00% 100%
Loan to Subsidiaries 0.00% 0.00% 100% 0.00% 0.00% 100%
Other Loans 3.86% 3.86% 100% 5.05% 5.05% 100%
Based on its review of macro-economic developments and economic outlook, the Company has assessed that no adjustment
is required for temporary overlays to determine qualitative impact on its PD’s as at March 31, 2023 and March 31, 2022.
Reference is drawn to Note 65 which explains the impact of COVID-19 pandemic.
Loss Given Default (LGD)

LGD is the estimated loss that the Company might suffer if the borrower defaults. The Company determines its recovery
(net present value) by analysing the recovery trends, borrower rating, collateral value and expected proceeds from sale
of asset/collateral.

Portfolio
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Gold Loan 9.81% 9.81% 9.81% 10.00% 10.00% 10.00%
Personal Loan 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Corporate Loan 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%
Business Loan 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Staff Loan 0.00% 0.00% 100.00% 0.00% 0.00% 100.00%
Loan to Subsidiaries 0.00% 0.00% 100.00% 0.00% 0.00% 100.00%
Other Loans 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%
LGD Rates have been computed internally based on the discounted recoveries in defaulted accounts that are closed/
written off/ repossessed and upgraded during the year.
When estimating ECLs on a collective basis for a group of similar assets, the Company applies the same principles for
assessing whether there has been a significant increase in credit risk since initial recognition.
Company has adopted 65% as the LGD which is the rate drawn reference from Internal Rating Based (IRB) approach
guidelines issued by Reserve Bank of India for Banks to calculate LGD where sufficient past information is not available.

Standalone
Financial
Statements
Notes

Credit risk exposure analysis
Stage 1 Stage 2
As at March 31, 2023 Stage 3 Total
Collective Collective
Per region
North 140,486.20 1,610.66 4,370.06 146,466.92
South 296,168.38 5,985.81 14,390.29 316,544.48
East 59,299.67 722.96 1,500.45 61,523.08
West 120,748.90 1,621.81 3,725.15 126,095.86
EIR impact on service charges received (323.91)
Gross amount net of EIR impact of service charge received 650,306.43
Stage 1 Stage 2
As at March 31, 2022 Stage 3 Total
Collective Collective
Per region
North 121,197.76 3,876.91 4,194.20 129,268.87
South 285,658.25 12,010.77 8,482.25 306,151.28
East 49,752.10 1,723.35 1,408.16 52,883.61
West 106,200.92 3,462.13 3,277.80 112,940.85
EIR impact on service charges received (183.36)
Gross amount net of EIR impact of service charge received 601,061.25

250
Notes
Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and
valuation of each type of collateral.

The tables on the following pages show the maximum exposure to credit risk by class of financial asset. They also show the total fair value of collateral, any surplus
collateral (the extent to which the fair value of collateral held is greater than the exposure to which it relates), and the net exposure to credit risk.
The main types of collateral are as follows: -
Company provides loans against security of gold ornaments. The gold ornaments are pledged with the company and based on the company policy of loan to value
ratio, the loan is provided.
Fair value of collateral and credit enhancements held
Maximum Book debts,

As at March 31, 2023 exposure to Bank and Household Inventory
Surplus Total Net Associated
credit risk Cash Securities government used Gold and other Building
collateral collateral exposure ECL
guarantees Ornaments working
capital items
Financial assets
Cash and cash equivalents 64,288.01 64,288.01 - - - - - - 64,288.01 - -
Bank Balance other than Cash and 323.95 323.95 - - - - - - 323.95 - -
cash equivalents
Loans (Gross):
i) Gold Loan 637,038.17 - - - 637,038.17 - - 347,675.80 984,713.97 - 7,454.15
ii) Personal Loan 6,972.75 - - - - - - - - 6,972.75 119.89
iii) Corporate Loan 1,185.11 - - - - 1,185.11 - 124.45 1,309.56 - 49.76
iv) Business Loan 2,270.99 - - - - 21.54 93.15 114.69 2,249.45 24.81
v) Staff Loan 30.35 - - - - - - - - 30.35 1.38
vi) Loans to subsidiaries 2,600.00 - - - - - - - - 2,600.00 -
vii) Other Loans 209.06 - 0.15 - - - - 0.44 0.59 208.91 7.63
Government securities at amortised 1,874.62 - - - - - - - - 1,874.62 -
cost
Trade receivables 16.06 - - - - - - - - 16.06 -
Total financial assets at 718,145.26 64,611.96 0.15 - 637,038.17 1,185.11 21.54 347,893.84 1,050,750.77 15,288.33 7,657.62
Other financial assets 1,336.19 - - - - - - - - 1,336.19 -
amortised cost
Notes
Financial

Standalone
Statements

Maximum Book debts,

capital items
Total financial instruments at 0.03 - - - - - - - - 0.03 -

Financial assets at FVTPL1 0.03 - - - - - - - - 0.03 -
fair value through profit or loss1

Financial assets at fair value 1,875.66 - - - - - - - - 1,875.66 -
Total financial instruments at 1,875.66 - - - - - - - - 1,875.66 -

through OCI1
fair value through OCI1

720,020.94 64,611.96 0.15 - 637,038.17 1,185.11 21.54 347,893.84 1,050,750.77 17,164.01 7,657.62
729,570.22 64,611.96 0.15 - 637,054.43 1,185.11 21.54 347,905.89 1,050,779.08 26,697.03 7,664.50
Other commitments 9,549.28 - - - 16.26 - - 12.05 28.31 9,533.02 6.88
1Including equity instruments
Maximum Book debts,

capital items
Financial assets
Cash and cash equivalents 91,785.15 91,785.15 - - - - - - 91,785.15 - -
Bank Balance other than Cash and 643.98 643.98 - - - - - - 643.98 - -
cash equivalents
Loans (Gross):
i) Gold Loan 595,873.38 - - - 595,873.38 - - 285,289.09 881,162.47 - 7,081.40
ii) Personal Loan 3,206.26 - - - - - - - - 3,206.26 89.02
iii) Corporate Loan 206.81 - - - - 206.81 - 23.69 230.50 14.08
iv) Business Loan 1,058.57 - - - - 31.86 82.83 114.69 1,026.71 19.92
v) Staff Loan 17.64 - - - - - - - - 17.64 1.24
vi) Loans to subsidiaries 480.00 - - - - - - - - 480.00 -
vii) Other Loans 218.59 - 0.12 - - - - 0.47 0.59 218.46 13.25

Government securities at amortised 1,876.06 - - - - - - - - 1,876.06 -
cost
251
252
Notes

Maximum Book debts,

capital items

Trade receivables 21.44 - - - - - - - - 21.44 -
Total financial assets at 696,612.85 92,429.13 0.12 - 595,873.38 206.81 31.86 285,396.08 973,937.38 8,071.55 7,218.91
Other financial assets 1,224.98 - - - - - - - - 1,224.98 -
amortised cost
Total financial instruments at 0.02 - - - - - - - - 0.02 -

Financial assets at FVTPL1 0.02 - - - - - - - - 0.02 -
fair value through profit or loss1

Financial assets at fair value 2,565.48 - - - - - - - - 2,565.48 -
Total financial instruments at 2,565.48 - - - - - - - - 2,565.48 -

through OCI1
fair value through OCI1

699,178.35 92,429.13 0.12 - 595,873.38 206.81 31.86 285,396.08 973,937.38 10,637.05 7,218.91
717,640.31 92,429.13 0.12 - 595,961.89 206.81 31.86 285,447.49 974,077.30 29,010.50 7,238.50
Other commitments 18,461.96 - - - 88.51 - - 51.41 139.92 18,373.45 19.59
1Including equity instruments
II) Liquidity risk

Liquidity risk is the risk of being unable to raise necessary funds from the market at optimal cost to meet operational and debt servicing requirements. The
purpose of liquidity management is to ensure sufficient cash flow to meet all financial commitments and to capitalise on opportunities for business expansion.
Board of Directors will have overall responsibility of monitoring, supervision and control of the Asset Liability Management (ALM) mechanism. Board will
have a sub-committee of Directors (ALM Committee) to review the ALM position of the Company on at least half yearly intervals. An Asset Liability Committee
(ALCO) consisting of senior executives of the Company including the Managing Director shall be responsible for the day to day as well as periodic monitoring
and control of Asset Liability management.
Notes
Financial

Standalone
Asset Liability Management (ALM)

Statements
he table below shows the maturity pattern of the assets and liabilities. In the case of loans, contracted tenor of gold loan is maximum of 12 months. However, on
T
account of high incidence of prepayment before contracted maturity, the below maturity profile has been prepared by the management on the basis of historical
pattern of repayments. In case of loans other than gold loan, the maturity profile is based on contracted maturity.
Maturity pattern of assets and liabilities as on March 31, 2023:

Upto 1 1 to 2 2 to 3 3 to 6 6 months to 3 to 5 Over 5 Not sensitive
Particulars 1 to 3 years Total
month months months months 1 year years years to ALM *
Financial assets
Cash and cash equivalents 64,206.58 30.00 - - 51.43 - - - - 64,288.01
Bank Balance other than Cash and cash 106.87 6.73 0.17 8.94 144.05 56.78 0.41 - - 323.95
equivalents
Derivative Financial Instruments - - - - - - - - - -
Trade Receivables 15.16 - - 0.90 - - - - - 16.06
Loans 130,791.37 96,983.64 78,229.61 152,121.63 147,835.10 14,148.62 22,843.39 19.35 (323.91) 642,648.80
Investments - 2.37 22.71 16.81 10.00 - - 13,116.70 - 13,168.59
Total 195,455.22 97,024.73 78,252.49 152,148.58 148,051.57 15,193.05 22,843.82 13,136.05 (323.91) 721,781.60
Other Financial assets 335.24 1.99 - 0.30 10.99 987.65 0.02 - - 1,336.19
Derivative Financial Instruments - - 53.22 1,815.98 23.21 - - - - 1,892.41
Payables 1,598.62 - - - 360.76 - - - - 1,959.38
Debt Securities 11,799.74 1,140.10 9,004.75 1,130.34 29,369.50 66,808.08 12,425.68 5,860.65 (155.21) 137,383.63
Borrowings (other than Debt Securities) 5,094.14 3,792.05 48,938.96 101,010.98 110,918.26 78,981.98 10,385.96 - (129.92) 358,992.41
Subordinated Liabilities 230.39 - - - 236.00 504.93 - - (4.29) 967.03
Total 23,046.31 5,313.19 58,726.10 104,507.07 142,709.46 147,471.18 23,413.15 5,861.94 (289.42) 510,758.98
Other Financial liabilities 4,323.42 381.04 729.17 549.77 1,801.73 1,176.19 601.51 1.29 - 9,564.12
*represents adjustments on account of EIR/ECL

253
254
Notes
Maturity pattern of assets and liabilities as on March 31, 2022:


month months months months 1 year years years to ALM *
Financial assets
Cash and cash equivalents 66,174.91 20,030.24 5,580.00 - - - - - - 91,785.15

Bank Balance other than Cash and cash 431.72 5.66 0.14 8.77 194.34 3.35 - - - 643.98
equivalents
Derivative Financial Instruments - - - - 605.01 - - - - 605.01
Trade Receivables 19.01 - - 2.43 - - - - - 21.44
Loans 107,293.72 74,463.87 63,096.11 155,860.85 179,212.71 18,737.08 713.10 27.76 (5,562.86) 593,842.34
Investments - 1.58 16.97 6.63 10.00 20.00 - 13,149.65 - 13,204.83
Total 174,196.49 94,508.92 68,701.61 155,879.08 180,028.39 19,685.59 713.10 13,177.41 (5,562.86) 701,327.73
Other Financial assets 277.13 7.57 8.39 0.40 6.33 925.16 - - - 1,224.98
Derivative Financial Instruments 25.90 - - 54.30 1,246.38 3,471.39 - - - 4,797.97
Payables 1,192.84 - - - 318.74 - - - - 1,511.58
Debt Securities 2,770.54 3,168.92 1,511.25 16,918.80 10,710.05 73,593.78 11,237.18 5,318.44 (250.08) 124,978.88
Borrowings (other than Debt Securities) 26,443.80 14,389.60 55,786.70 39,930.66 110,304.01 117,986.97 7,199.36 - (331.22) 371,709.88
Subordinated Liabilities - - - - 459.47 784.15 187.17 - (7.05) 1,423.74
Total 34,180.01 18,306.58 58,278.48 59,025.00 124,840.68 197,685.59 18,945.34 5,530.73 (588.35) 516,204.06
Other Financial liabilities 3,746.93 748.06 980.53 2,121.24 1,802.03 1,849.30 321.63 212.29 - 11,782.01
*represents adjustments on account of EIR/ECL

Standalone
Financial
Statements
Notes

The table below shows the maturity of the Company’s contingent liabilities and commitments based on estimates of the
management and contractual expiry. Each undrawn loan commitment is included in the time band containing the earliest date
it can be drawn down.
For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the
guarantee could be called.
Over Over Over 1 Over 3

On Upto 3 3months 6months year & year & Over 5
Particulars Total
Demand months & upto 6 & upto 1 upto 3 upto 5 years
months year years years
Income Tax Demands - - - - 53.66 - - 53.66
Service Tax Demands - - - - 4,995.05 - - 4,995.05
Other Claims - - - - 426.97 - - 426.97
Guarantees and counter guarantees 88.01 - - - - - - 88.01
Corporate Guarantee issued in favour of - - - - 1,940.91 - - 1,940.91
National Housing Bank for loan availed by
wholly owned subsidiary M/s Muthoot Homefin
(India) Limited
Disputed claims against the Company under - - - - 89.77 - - 89.77
litigation not acknowledged as debts
Other contingent liabilities - - - - - - - -
Commitments related to loans sanctioned but 9,549.28 - - - - - - 9,549.28
undrawn
Estimated amount of contracts remaining to be - 111.66 71.62 20.00 20.18 - - 223.46
executed on capital account, net of advances
Income Tax Demands - - - - 56.24 - - 56.24
Service Tax Demands - - - - 4,995.05 - - 4,995.05
Other Claims - - - - 426.97 - - 426.97
Guarantees and counter guarantees 88.19 - - - - - - 88.19
Corporate Guarantee issued in favour of - - - - 1,466.41 - - 1,466.41
National Housing Bank for loan availed by
wholly owned subsidiary M/s Muthoot Homefin
(India) Limited
Disputed claims against the Company under - - - - 71.26 - - 71.26
litigation not acknowledged as debts
Other contingent liabilities - - - - - - - -
Commitments related to loans sanctioned but 18,461.96 - - - - - - 18,461.96
undrawn
Estimated amount of contracts remaining to be - 150.33 102.14 71.55 - - - 324.02
executed on capital account, net of advances

Notes

III) Market risk
Market Risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of
changes in market factor. Such changes in the values of financial instruments may result from changes in the interest rates,
credit, liquidity, and other market changes. The objective of market risk management is to avoid excessive exposure of our
earnings and equity to loss and reduce our exposure to the volatility inherent in financial instruments. The Company is
exposed to four types of market risk as follows:
a) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is subject to interest rate risk, primarily since it lends to customers at
fixed rates and for maturity periods shorter than the funding sources. Majority of our borrowings are at fixed rates
. However, borrowings at floating rates gives rise to interest rate risk. Interest rates are highly sensitive to many
factors beyond control, including the monetary policies of the Reserve Bank of India, domestic and international
economic and political conditions, inflation and other factors. In order to manage interest rate risk, the Company seek
to optimize borrowing profile between short-term and long-term loans. The Company adopts funding strategies to
ensure diversified resource-raising options to minimize cost and maximize stability of funds. Assets and liabilities
are categorized into various time buckets based on their maturities and Asset Liability Management Committee
supervise an interest rate sensitivity report periodically for assessment of interest rate risks. The Interest Rate Risk
is mitigated by availing funds at very competitive rates through diversified borrowings and for different tenors.
During the year, Company has undertaken derivative transactions for hedging interest rate risk on certain domestic
currency exposures linked to external benchmark through Interest Rate Swaps as below:
As at As at
Particulars
March 31, 2023 March 31, 2022
Domestic Currency Exposure 6,000.00 -
The following table demonstrates the sensitivity to a reasonably possible change in the interest rates on the portion
of borrowings affected. With all other variables held constant, the profit before taxes affected through the impact on
floating rate borrowings are as follows:
As at As at
Impact on Profit before taxes
March 31, 2023 March 31, 2022
On Floating Rate Borrowings
1% increase in interest rates 2582.41 2,400.21
1% decrease in interest rates (2,582.41) (2,400.21)
b) Price risk
Sudden fall in the gold price and fall in the value of the pledged gold ornaments can result in some of the customers to
default if the loan amount and interest exceeds the market value of gold. This risk is in part mitigated by a minimum
25% margin retained on the value of gold jewellery for the purpose of calculation of the loan amount. Further, we
appraise the gold jewellery collateral solely based on the weight of its gold content, excluding weight and value of
the stone studded in the jewellery. In addition, the sentimental value of the gold jewellery to the customers may
induce repayment and redemption of the collateral even if the value of gold ornaments falls below the value of the
repayment amount. An occasional decrease in gold prices will not increase price risk significantly on account of our
adequate collateral security margins. However, a sustained decrease in the market price of gold can additionally
cause a decrease in the size of our loan portfolio and our interest income.

Standalone
Financial
Statements
Notes

Equity price risk is the risk that the fair value of equities decrease as the result of changes in level of equity indices
and individual stocks. The trading equity price risk exposure arises from equity securities classified at FVTPL and
the non-trading equity price risk exposure arises from equity securities classified at FVOCI.
A 10% increase/(decrease) in the equity price ( traded and non-traded) would have the impact as follows:
Increase/(Decrease) Sensitivity of Sensitivity of Other
Particulars
in percentage profit or loss Comprehensive Income
As at March 31, 2023 10/(10) 0.00/(0.00) 187.57/(187.57)
As at March 31, 2022 10/(10) 0.00/(0.00) 196.05/(196.05)
c) Foreign currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Foreign currency risk for the Company arises majorly on account of foreign currency borrowings. The
Company’s foreign currency exposures are managed in accordance with its Foreign Exchange Risk Management
Policy which has been approved by its Board of Directors. The Company has hedged its foreign currency risk on its
foreign currency borrowings as on March 31, 2023 by entering into forward contracts with the intention of covering
the entire term of foreign currency exposure . The counterparties for such hedge transactions are banks.
The Company’s exposure on account of Foreign Currency Borrowings at the end of the reporting period expressed in
Indian Rupees are as follows:
Foreign As at As at
Particulars
currency March 31, 2023 March 31, 2022
External Commercial Borrowings - Senior Secured Notes USD 45,359.21 76,815.78
(principal amount and interest accrued but not due on reporting date)
Since the foreign currency exposure is completely hedged by equivalent derivative instrument, there will not be any
significant impact on sensitivity analysis due to the possible change in the exchange rates where all other variables
are held constant. On the date of maturity of the derivative instrument, considering the hedging for the entire term
of the foreign currency exposure, the sensitivity of profit and loss to changes in the exchange rates will be Nil.
d) Prepayment risk
Prepayment risk is the risk that the Company will incur a financial loss because its customers and counterparties
repay or request repayment earlier than expected, such as fixed rate loans when interest rates fall.
IV) Operational and business risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail
to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or lead
to financial loss. The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks
through a control framework and by monitoring and responding to potential risks. Controls include effective segregation
of duties, access, authorisation and reconciliation procedures, staff education and assessment processes including the use
of internal audit.

Notes

Note 43: Disclosure with regard to dues to Micro Enterprises and Small Enterprises
Based on the information available with the Company and which has been relied upon by the auditors, none of the suppliers have
confirmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006”. Accordingly,
no disclosures relating to principal amounts unpaid as at the period ended March 31, 2023 together with interest paid /payable
are required to be furnished.
Note 44: Dividend remitted in foreign currency

There was no dividend remitted in foreign currency during the year ended March 31, 2023 and March 31, 2022.
Note 45: Segment reporting

The Company is engaged in the business segment of Financing, whose operating results are regularly reviewed by the entity’s
chief operating decision maker to make decisions about resources to be allocated and to assess its performance, and for which
discrete financial information is available. Further other business segments do not exceed the quantitative thresholds as
defined by the Ind AS 108 on “Operating Segment”. Hence, there are no separate reportable segments, as required by the
Ind AS 108 on “Operating Segment”.
Note 46: Share based payments

Pursuant to approval by the shareholders at their meeting held on September 27, 2013, the Company has established “Muthoot
ESOP 2013” scheme administered by the ESOP Committee of Board of Directors. The following options were granted as on
March 31, 2023. The fair value of the share options is estimated at the grant date using a Black-Scholes pricing model, taking
into account the terms and conditions upon which the share options were granted. However, the above performance condition
is only considered in determining the number of instruments that will ultimately vest.
I The Company has formulated various share-based payment schemes for its employees. Details of all
grants in operation during the year ended March 31, 2023 are as given below:
Particulars Tranche 1
Scheme Name Grant A Grant B
Date of grant November 09, 2013 November 09, 2013
Date of Board approval November 09, 2013 November 09, 2013
Method of settlement Equity settled Equity settled
No. of equity shares for an option One option - One share One option - One share
No. of options granted 3,711,200 1,706,700
Exercise price per option (in ₹) ₹50 ₹50
Vesting period 1-5 years 2-6 years
Manner of vesting In a graded manner over a 5 year In a graded manner over a 6 year
period with 10%,15%,20%,25% and period with 10%,15%,20%,25% and
30% of the grants vesting in each 30% of the grants vesting in each
year commencing from the end of 12 year commencing from the end of 24
months from the date of grant months from the date of grant

Standalone
Financial
Statements
Notes

A) Fixed Vesting period is as follows on following
dates :-
1st vesting "12 months from the date of grant (for November 09, 2014 November 09, 2015
Grant A & Loyalty)" and "24 months from the date
of grant (for Grant B)"
2nd vesting "On expiry of one year from the 1st November 09, 2015 November 09, 2016
vesting date"
3rd vesting "On expiry of one year from the 2nd November 09, 2016 November 09, 2017
vesting date"
4th vesting "On expiry of one year from the 3rd November 09, 2017 November 09, 2018
vesting date"
5th vesting "On expiry of one year from the 4th November 09, 2018 November 09, 2019
vesting date"
B) Conditional Vesting Service only - graded vesting Service only - graded vesting
Exercise period 8 Years
Particulars Tranche 2 Tranche 3

Scheme Name Grant A Grant B Grant A
Date of grant July 08, 2014 July 08, 2014 March 06, 2015
Date of Board approval July 08, 2014 July 08, 2014 March 06, 2015
Method of settlement Equity settled Equity settled Equity settled
No. of equity shares for an option One option - One share One option - One share One option - One share
No. of options granted 456,000 380,900 325,000
Exercise price per option (in ₹) ₹50 ₹50 ₹50
Vesting period 1-5 years 2-6 years 1-5 years
Manner of vesting In a graded manner over In a graded manner over In a graded manner over
10%,15%,20%,25% and 30% 10%,15%,20%,25% and 30% 10%,15%,20%,25% and 30%
of the grants vesting in each of the grants vesting in each of the grants vesting in each
year commencing from the year commencing from the year commencing from the
end of 12 months from the end of 24 months from the end of 12 months from the
date of grant date of grant date of grant
A) Fixed Vesting period is as follows on
following dates :-
1st vesting "12 months from the date July 08, 2015 July 08, 2016 March 06, 2016
of grant (for Grant A & Loyalty)" and
"24 months from the date of grant
(for Grant B)"
2nd vesting "On expiry of one year July 08, 2016 July 08, 2017 March 06, 2017
from the 1st vesting date"
3rd vesting "On expiry of one year July 08, 2017 July 08, 2018 March 06, 2018
from the 2nd vesting date"
4th vesting "On expiry of one year July 08, 2018 July 08, 2019 March 06, 2019
from the 3rd vesting date"
5th vesting "On expiry of one year July 08, 2019 July 08, 2020 March 06, 2020
from the 4th vesting date"
B) Conditional Vesting Service only - graded vesting Service only - graded vesting Service only - graded vesting
Exercise period 8 Years 8 Years

Notes

Scheme Name Grant A Grant B Loyalty
Date of grant June 27, 2016 June 27, 2016 June 27, 2016
Date of Board approval June 27, 2016 June 27, 2016 June 27, 2016
Manner of vesting In a graded manner over In a graded manner over In a graded manner over a 2
a 5 year period with a 6 year period with year period with 50% vesting
10%,15%,20%,25% and 30% 10%,15%,20%,25% and 30% at the end of 12 months from
of the grants vesting in each of the grants vesting in each the date of grant and the
year commencing from the year commencing from the remaining 50% of the grants
end of 12 months from the end of 24 months from the vesting at the end of 24
date of grant date of grant months from the date of grant
following dates :-
1st vesting "12 months from the date June 27, 2017 June 27, 2018 June 27, 2017
(for Grant B)"
2nd vesting "On expiry of one year June 27, 2018 June 27, 2019 June 27, 2018
3rd vesting "On expiry of one year June 27, 2019 June 27, 2020 -
4th vesting "On expiry of one year June 27, 2020 June 27, 2021 -
5th vesting "On expiry of one year June 27, 2021 June 27, 2022 -
Date of grant August 07, 2017 August 07, 2017 August 07, 2017
Date of Board approval August 07, 2017 August 07, 2017 August 07, 2017
Manner of vesting In a graded manner over In a graded manner over In a graded manner over a
a 5 year period with a 6 year period with 2 year period with 50%
10%,15%,20%,25% and 30% 10%,15%,20%,25% and 30% vesting at the end of 12
of the grants vesting in each of the grants vesting in each months from the date of grant
year commencing from the year commencing from the and the remaining 50% of
end of 12 months from the end of 24 months from the the grants vesting at the end
date of grant date of grant of 24 months from the date
of grant

Standalone
Financial
Statements
Notes

following dates :-
1st vesting "12 months from the date August 07, 2018 August 07, 2019 August 07, 2018
(for Grant B)"
2nd vesting "On expiry of one year August 07, 2019 August 07, 2020 August 07, 2019
3rd vesting "On expiry of one year August 07, 2020 August 07, 2021 -
4th vesting "On expiry of one year August 07, 2021 August 07, 2022 -
5th vesting "On expiry of one year August 07, 2022 August 07, 2023 -
II Computation of fair value of options granted during the year

The Black-Scholes Model has been used for computing the weighted average fair value considering the following:
Tranche 1
Particulars
Grant A Grant B
Share price on the date of grant (₹) 117.30 117.30
Exercise price (₹) ₹50 ₹50
Expected volatility (%) 57.68% 57.68%
Life of the options granted (years)
Expected life of options 1.5-5.5 years 2.5-6.5 years
Weighted average contractual life 4 years 5 years
Risk-free interest rate (%) 8.4% - 8.8% p.a. 8.4% - 8.95% p.a.
Expected dividend yield (%) 3.84 % p.a. 3.84 % p.a.
Model used Black-Scholes Model Black-Scholes Model
Fair value per option tranche on grant date (₹) ₹68.75 (Nov 9, 2014) ₹70.21 (Nov 9, 2015)
(corresponding vesting date shown in brackets) ₹70.21 (Nov 9, 2015) ₹71.13 (Nov 9, 2016)
₹71.13 (Nov 9, 2016) ₹71.52 (Nov 9, 2017)
₹71.52 (Nov 9, 2017) ₹71.47 (Nov 9, 2018)
₹71.47 (Nov 9, 2018) ₹71.11 (Nov 9, 2019)
The expected life of the share options is based on historical data and current expectations and is not necessarily indicative
of exercise patterns that may occur. Volatility is estimated by the actual movement in share prices of the company for
one year preceding the grant date. This historical volatility is the annualised standard deviation of the continuously
compounded rates of daily stock returns.

Notes
Tranche 2 Tranche 3
Particulars
Share price on the date of grant (₹) ₹184.30 ₹184.30 ₹219.05
Exercise price (₹) ₹50 ₹50 ₹50
Expected volatility (%) 53.96% 53.96% 34.50%
Expected life of options 1.5-5.5 years 2.5-6.5 years 1.5-5.5 years
Weighted average contractual life 4 years 5 years 4 years
Risk-free interest rate (%) 8.26% - 8.35% p.a. 8.24% - 8.32% p.a. 7.45% - 7.60 % p.a.
Expected dividend yield (%) 3.26% p.a. 3.26% p.a. 2.74% p.a.
Model used Black-Scholes Model Black-Scholes Model Black-Scholes Model
Fair value per option tranche on grant ₹131.77 (July 8, 2015) ₹130.56 (July 8, 2016) ₹165.61 (Mar 6, 2016)
date (₹) (corresponding vesting date
shown in brackets) ₹130.56 (July 8, 2016) ₹129.33 (July 8, 2017) ₹163.16 (Mar 6, 2017)
₹129.33 (July 8, 2017) ₹127.91 (July 8, 2018) ₹160.66 (Mar 6, 2018)
₹127.91 (July 8, 2018) ₹126.26 (July 8, 2019) ₹158.13 (Mar 6, 2019)
₹126.26 (July 8, 2019) ₹124.39 (July 8, 2020) ₹155.57 (Mar 6, 2020)
Tranche 4
Particulars
Grant A Grant B Loyalty
Risk-free interest rate (%) 6.91% - 7.41% p.a. 7.08% - 7.47% p.a. 6.91% - 7.08% p.a.
Fair value per option tranche on grant ₹226.42 (June 27, 2017) ₹223.87 (June 27, 2018) ₹262.48 (June 27, 2017)
date (₹) (corresponding vesting date ₹223.87 (June 27, 2018) ₹221.34 (June 27, 2019) ₹257.37 (June 27, 2018)
shown in brackets)
₹221.34 (June 27, 2019) ₹218.80 (June 27, 2020) -
₹218.80 (June 27, 2020) ₹216.20 (June 27, 2021) -
₹216.20 (June 27, 2021) ₹213.54 (June 27, 2022) -

Standalone
Financial
Statements
Notes

Tranche 5
Particulars
Fair value per option tranche on grant ₹416.95 (August 7, 2018) ₹413.92 (August 7, 2019) ₹452.31 (August 7, 2018)
date (₹) (corresponding vesting date
₹413.92 (August 7, 2019) ₹410.90 (August 7, 2020) ₹447.05 (August 7, 2019)
shown in brackets)
₹410.90(August 7, 2020) ₹407.88 (August 7, 2021) -
₹407.88(August 7, 2021) ₹404.82 (August 7, 2022) -
₹404.82(August 7, 2022) ₹401.71 (August 7, 2023) -
III Reconciliation of options

Particulars Tranche 1 Tranche 2 Tranche 3
Financial Year 2022-23 Grant A Grant B Grant A Grant B Grant A
Options outstanding at April 1, 2022 - - 1,860 3,000 15,000
Granted during the year - - - - -
Forfeited during the year - - - - -
Exercised during the year - - - 3,000 15,000
Expired / lapsed during the year - - 1,860 - -
Options outstanding at March 31, 2023 - - - - -
Options exercisable at March 31, 2023 - - - - -
Weighted average remaining contractual life (in years) - - - - -
Weighted average share price at the time of exercise* - - - 992.20 1,028.08

Notes

Financial Year 2022-23 Grant A Grant B Loyalty Grant A Grant B Loyalty
Options outstanding at April 1, 2022 22,520 43,645 - 64,925 55,915 -
Granted during the year - - - - - -
Forfeited during the year - - - - - -
Exercised during the year 2,120 22,235 - 49,335 11,275 -
Expired / lapsed during the year 3,400 10,115 - 3,790 21,250 -
Options outstanding at March 31, 2023 17,000 11,295 - 11,800 23,390 -
Options exercisable at March 31, 2023 17,000 11,295 - 11,800 9,350 -
Weighted average remaining contractual life - - - - 0.35 -
(in years)
Weighted average share price at the time of 992.2 1048.18 - 1045.97 1,044.13 -
exercise*
* Disclosure of weighted average share price at the time of exercise is applicable only for plans where there has been an exercise of options in
respective financial year.
The Company has used Fair value method for accounting of Share based payments cost.
Options outstanding at April 1, 2021 10,295 5,725 2,680 3,340 27,500
Exercised during the year 2,495 2,070 310 340 12,500
Expired / lapsed during the year 7,800 3,655 510 - -
Options outstanding at March 31, 2022 - - 1,860 3,000 15,000
Options exercisable at March 31, 2022 - - 1,860 3,000 15,000
Weighted average share price at the time of exercise* 1,488.51 1,474.72 1,505.05 1,505.05 1,445.25

Options outstanding at April 1, 2021 77,920 81,425 875 115,350 90,705 -
Expired / lapsed during the year 3,095 12,835 875 8,145 22,625 -
Weighted average remaining contractual life - 0.24 - 0.35 0.90 -
(in years)
exercise*

Standalone
Financial
Statements
Notes

Note 47: Utilization of proceeds of Public Issue of Non - Convertible Debentures
The Company has during the year raised through public issue ₹13,233.59 millions of Secured Redeemable Non-Convertible
Debentures. As at March 31, 2023, the company has utilised the entire proceeds of the public issue, net of issue expenses in
accordance with the objects stated in the offer documents.
Note 48: Corporate Social Responsibility (CSR)

The Company has constituted CSR Committee and has undertaken CSR activities in accordance with Schedule VII to the Companies
Act, 2013. The gross amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 for the year
ended March 31,2023 was ₹957.45 millions (March 31, 2022: ₹808.68 millions) and the Company has spent ₹964.40 millions
during the year (March 31, 2022: ₹811.40 millions).The Board of Directors has passed a resolution to carry forward the excess
amount spent of I6.95 million for utilisation in future years upto a period of three years. Details are as below:
a) Gross amount required to be spent by the Company during the year ₹957.45 millions
b) Amount approved by the Board (CSR Committee) to be spent during the year ₹964.40 millions
c) Amount spent during the year on:
2022-23 2021-22
Sl no. Particulars Amount Amount Amount Amount
Total Total
spent unspent spent unspent
i) Construction / acquisition of any asset - - - - - -
ii) On purposes other than (i) above 957.45 - 957.45 811.40 - 811.40
iii) Amount spent carried forward for set off in 6.95 - 6.95 - - -
future years on purposes other than (i) above
Total 964.40 - 964.40 811.40 - 811.40
d) Details of related party transactions in relation to CSR expenditure is given in Note 39

e) Details of CSR Unspent Amount:
Sl no. Particulars 2022-23 2021-22
i) Opening Balance 66.83 120.49
ii) Amount deposited in Specified Fund of Schedule VII - -
iii) Amount required to be spent during the year 957.45 808.68
iv) Amount spent during the year* 1,001.45 862.34
v) Closing Balance (CSR Unspent Amount) 22.83 66.83
*Excludes amount of I6.95 million and I2.62 million spent in excess of amount required to be spent under sl no (iii) above for the year ended
March 31, 2023 and March 31,2022 respectively
f) Amounts Earmarked for Ongoing Projects

2022-23 2021-22
Particulars In Separate CSR In Separate CSR
With Company Total With Company Total
Unspent A/c Unspent A/c
Opening Balance - 66.83 66.83 120.49 - 120.49
Amount required to be spent - - - - - -
during the year
Transfer to Separate CSR unspent - - - (120.49) 120.49 -
A/c
Amount spent during the year - 44.00 44.00 - 53.66 53.66
Closing Balance - 22.83 22.83 - 66.83 66.83

Notes

g) Details of excess amounts spent carried forward for utilisation in future years:
Sl no. Particulars 2022-23
i) Opening Balance -
ii) Amount required to be spent during the year 957.45
iii) Amount spent during the year 964.40
iv) Closing Balance 6.95
There is no shortfall in the CSR amount required to be spent by the Company as per section 135(5) of the Act for the
financial year ended March 31, 2023 and March 31, 2022.
CSR activities include activities for employment enhancing vocational skills, social business projects, promotion of
education, promoting and supporting technology and innovations, promoting sports activities, medical assistance to poor
patients, environmental protection activities and activities for sustainable development, and various other activities
including assistance and support in disaster management activities which are specified under Schedule VII of Companies
Act, 2013.
Note 49: Investments in Subsidiaries

During the financial year 2022-23, the Company has acquired 1,47,060 equity shares of the face value of I10 each in Belstar
Microfinance Limited for a total consideration of I50.00 millions.
Note 50: Frauds during the year

During the year, frauds committed by employees and customers of the company amounted to ₹52.16 millions (March 31,
2022: ₹13.30 millions) which has been recovered /written off / provided for. Of the above, fraud by employees of the company
amounted to ₹39.47 millions (March 31,2022: ₹6.35 millions).
Note 51: Disclosures required as per Reserve Bank of India Circular No RBI/2019-20/88/DOR.NBFC
(PD) CC. No.102/03.10.001/2019-20 dated November 04, 2019
(i) Funding Concentration based on significant counterparty (both deposits and borrowings):
Number of
% of Total % of Total
Date Significant Amount
Deposits Liabilities
Counterparties
31/03/2023 21 319,038.28 Not Applicable 61.88%
31/03/2022 20 290,748.33 Not Applicable 55.69%
(ii) Top 20 large deposits: Not Applicable
(iii) Top 10 borrowings :

% of Total
Date Amount
Borrowings
31/03/2023 229,638.00 46.17%
31/03/2022 211,260.07 42.41%

Standalone
Financial
Statements
Notes

(iv) Funding Concentration based on significant instrument/product
As March 31,2023 As March 31,2022

Name of the instrument/product % of Total % of Total
Amount Amount
Liabilities Liabilities
Secured Non-Convertible Debentures 137,383.64 26.65% 124,978.88 23.94%
Borrowings from Banks/FIs 296,135.83 57.44% 276,428.77 52.95%
Subordinated Debt 967.03 0.19% 1,423.74 0.27%
Commercial Paper 11,535.66 2.24% 9,892.07 1.89%
External Commercial borrowings-Senior Secured Notes 45,170.77 8.76% 75,663.21 14.49%
Other Loans-Loans from Directors and relatives 6,150.14 1.19% 9,725.84 1.86%
Total 497,343.07 96.47% 498,112.51 95.41%
Note:
a) The disclosures in (i) and (iii) above excludes details of the beneficiary holders of the External Commercial
Borrowings-Senior Secured Notes.
b) Total Liabilities represent Total Liabilities and Equity as per Balance Sheet less Equity.
(v) Stock Ratios:
As at As at
Stock Ratios
March 31, 2023 March 31, 2022
Commercial Paper as a % of Total Public Funds 2.35% 2.03%
Commercial Paper as a % of Total Liabilities 2.24% 1.89%
Commercial Paper as a % of Total Assets 1.59% 1.40%
Non-convertible debentures (NCDs)(original maturity of less than one year) as a % of Total Nil Nil
Public Funds
Liabilities
Assets
Other Short-term Liabilities to Total Public Funds 66.62% 59.43%
Other Short-term Liabilities to Total Liabilities 63.47% 55.59%
Other Short-term Liabilities to Total Assets 45.06% 41.14%
Note:
a) Public Fund represents Debt Securities, Borrowings (other than debt securities) and Subordinated Liabilities and excludes
Loan from Directors and Relatives.
b) Total Liabilities represent Total Liabilities and Equity as per Balance Sheet less Equity.
c) Other Short Term Liabilities represent all liabilities (excluding Commercial Paper) maturing within a year.

Notes

(vi) Institutional set-up for Liquidity Risk Management
The Board shall have the overall responsibility for management of liquidity risk. The Board shall decide the strategy,
policies and procedures to manage liquidity risk in accordance with the liquidity risk tolerance/limits decided by it from
time to time.
The ALM Committee of the Board of Directors shall be responsible for evaluating the liquidity risk.
The Asset-Liability Management Committee (ALCO) consisting of the NBFC’s top management shall be responsible for
ensuring adherence to the risk tolerance/limits set by the Board as well as implementing the liquidity risk management
strategy of the NBFC. The Managing Director heads the Committee. The role of the ALCO with respect to liquidity risk
include, inter alia, decision on desired maturity profile and mix of incremental assets and liabilities, sale of assets as a
source of funding, the structure, responsibilities and controls for managing liquidity risk, and overseeing the liquidity
positions of the Company.
The ALM Support Group headed by Chief Financial Officer and consisting of operating staff who will be responsible for
analysing, monitoring and reporting the liquidity risk profile to the ALCO.
Note 52: Other disclosures required as per Reserve Bank of India Master Direction – Non-Banking
Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016 and under Scale Based regulation for NBFCs
Particulars As at March 31, 2023 As at March 31, 2022
Sl.
No. Amount Amount
Liabilities : Amount overdue Amount overdue
outstanding outstanding
1 Loans and advances* availed by the non-banking
financial company inclusive of interest accrued
thereon but not paid :-
(a) Debentures : Secured 144,851.31 Nil 134,144.30 Nil
: Unsecured Nil Nil Nil Nil
(other than falling within the meaning of public
deposits)
: Perpetual Debt Instrument Nil Nil Nil Nil
(b) Deferred credits Nil Nil Nil Nil
(c) Term Loans 161,692.56 Nil 141,764.39 Nil
(d) Inter-corporate loans and borrowing Nil Nil Nil Nil
(e) Commercial Paper 11,583.51 Nil 9,921.36 Nil
(f) Other Loans :
Loan from Directors/ Relatives of Directors 6,150.14 Nil 9,725.84 Nil
Subordinated Debt 1,760.23 Nil 2,390.85 Nil
Borrowings from Banks/FI 135,290.03 Nil 135,416.86 Nil
Overdraft against Deposit with Banks Nil Nil Nil Nil
External Commercial Borrowings 45,359.21 Nil 76,815.78 Nil
*Principal amounts of loans and advances availed

Standalone
Financial
Statements
Notes

As at As at
Sl.No. Assets :
March 31, 2023 March 31, 2022
2 Break-up of Loans and Advances including bills receivables
(other than those included in (3) below) :-
(including interest accrued)
(a) Secured 638,401.03 596,222.32
(b) Unsecured 14,204.59 6,871.66
As at As at
Sl.No. Assets :
March 31, 2023 March 31, 2022
3 Break-up of Leased Assets and stock on hire and other assets counting towards AFC
activities:-
(i) Lease assets including lease rentals under sundry debtors:-
(a) Financial lease Nil Nil
(b) Operating lease Nil Nil
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire Nil Nil
(b) Repossessed Assets Nil Nil
(iii) Other loans counting towards AFC activities
(a) Loans where assets have been repossessed Nil Nil
(b) Loans other than (a) above Nil Nil
As at As at
Sl.No. Assets :
March 31, 2023 March 31, 2022
4 Break-up of Investments (net of provision for diminution in value) :-
Current Investments:-
1. Quoted:
(i) Shares: (a) Equity Nil Nil
(b) Preference Nil Nil
(ii) Debentures and Bonds Nil Nil
(iii) Units of mutual funds Nil Nil
(iv) Government Securities(net of amortisation) 51.89 35.18
(v) Others Nil Nil
2. Unquoted:
(i) Shares: (a) Equity Nil Nil
(iv) Government Securities Nil Nil
(v) Others Nil Nil

Notes

As at As at
Sl.No. Assets :
March 31, 2023 March 31, 2022
Long Term Investments:-
1. Quoted:
(i) Shares: (a) Equity 1,006.20 1,184.66
(b) Preference 145.96 145.96
(iv) Government Securities(net of amortisation) 1,822.73 1,840.88
(v) Others Nil Nil
2. Unquoted:
(i) Shares: (a) Equity 10,141.81 9,998.15
(iv) Government Securities Nil Nil
(v) Others - Investment in Pass Through Certificates Nil Nil
5 Borrower Group-wise Classification of Assets Financed* as in (2) and (3) above:-

Category Amount (Principal, Net of provisioning) Amount (Principal, Net of provisioning)
Secured Unsecured Total Secured Unsecured Total
1. Related Parties
(a) Subsidiaries Nil 2,600.00 2,600.00 Nil 480.00 480.00
(b) Companies in the same group Nil Nil Nil Nil Nil Nil
(c) Other related parties Nil Nil Nil Nil Nil Nil
2. Other than related parties 612,452.65 9,387.40 621,840.06 568,448.81 4,384.04 572,832.85
Total 612,452.65 11,987.40 624,440.06 568,448.81 4,864.04 573,312.85
*Principal amounts of assets financed
6 Investor group-wise classification of all investments (current and long term ) in shares and
securities (both quoted and unquoted) :-
Market Value / Market Value /
Category Break up value or Book Value (Net of Break up value or Book Value (Net of
fair value or Net provisioning) fair value or Net provisioning)
Asset Value Asset Value
1. Related Parties
(a) Subsidiaries 9,049.57 9,418.29 8,944.51 9,368.29
(b) Companies in the same group 392.55 392.55 331.92 331.92
(c) Other related parties Nil Nil Nil Nil
2. Other than related parties 3,291.25 3,357.75 3,471.65 3,504.62
Total 12,733.37 13,168.59 12,748.08 13,204.83

Standalone
Financial
Statements
Notes

7 Other information
Amount outstanding
Sl.
No.
March 31, 2023 March 31, 2022
(i) Gross Non-Performing Assets*
(a) With Related parties Nil Nil
(b) With Others 23,985.96 17,372.24
(ii) Net Non-Performing Assets*
(b) With Others 21,521.24 15,532.83
(iii) Assets acquired in satisfaction of debt
(b) With Others Nil Nil
* Stage 3 Loan assets under Ind AS
8. Details of the Auctions conducted with respect to Gold Loan

The Company auctioned 4,60,267 loan accounts (Previous Year: 9,51,143 accounts) during the financial year. The
outstanding dues on these loan accounts were I32,244.91 millions (March 31, 2022: I74,405.94 millions) till the respective
date of auction. The Company realised I29,419.12 millions (March 31, 2022: I65,370.15 millions) on auctioning of gold
jewellery taken as collateral security on these loans. Company confirms that none of its sister concerns participated in
the above auctions.
9 a) Capital
As at As at
Particulars
March 31, 2023 March 31, 2022
i) CRAR (%) 31.77 29.97
ii) CRAR-Tier I capital (%) 31.01 29.10
iii) CRAR-Tier II capital (%) 0.76 0.87
iv) Amount of subordinated debt raised as Tier-II capital 984.54 1,449.41
v) Amount raised by issue of Perpetual Debt Instruments Nil Nil
9 b) Investments
As at As at
Particulars
March 31, 2023 March 31, 2022
1) Value of Investments
(i) Gross Value of Investments
(a) In India 12,016.46 11,874.23
(b) Outside India 1,152.13 1,330.60
(ii) Provisions for Depreciation
(a) In India Nil Nil
(b) Outside India Nil Nil
(iii) Net Value of Investments
(a) In India 12,016.46 11,874.23
(b) Outside India 1,152.13 1,330.60

Notes
As at As at
Particulars
March 31, 2023 March 31, 2022
2) Movement of provisions held towards

Depreciation on investments
(i) Opening balance Nil Nil
(ii) Add : Provisions made during the year Nil Nil
(iii) L ess : Write-off / write-back of excess provisions during the year Nil Nil
(iv) Closing balance Nil Nil
9 c) Derivatives
Forward Rate Agreement / Interest Rate Swap

The Company has entered into Cross Currency Swaps to convert the foreign currency principal and interest payment
liability to fixed Indian Rupee liabilities and Interest Rate Swaps to convert certain domestic borrowings linked to
external benchmark into fixed rate liabilities. The notional value and fair value of such swaps agreements have been
disclosed as under
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) The notional principal of swap agreements 6,000.00 15,796.72
(ii) Losses which would be incurred if counterparties failed to fulfill their obligations Nil Nil
under the agreements
(iii) Collateral required by the NBFC upon entering into swaps Nil Nil
(iv) Concentration of credit risk arising from swaps Nil Nil
(v) The fair value of the swap book (23.21) 605.01
The company has hedged its foreign currency borrowings through Cross Currency Swaps and interest rate risk on
certain domestic currency exposures linked to external benchmark through Interest Rate Swaps. For Accounting
Policy and Risk Management Policy, refer notes 3 and 42 respectively.
Exchange traded interest rate (IR) derivatives

As at As at
Particulars
March 31, 2023 March 31, 2022
Exchange traded interest rate (IR) derivatives Nil Nil
Disclosures on risk exposures of derivatives
Qualitative disclosures
The Company has a Board approved policy in dealing with derivative transactions.The Company undertakes
derivative transactions for hedging its foreign currency exposures to mitigate the foreign currency risk and interest
rate risk on certain domestic currency exposures linked to external benchmark. During the year, the company has
hedged its foreign currency borrowings through foreign exchange forward contracts and Cross Currency Swaps
and interest rate risk on certain domestic currency exposures linked to external benchmark through Interest Rate
Swaps . The Asset Liability Management Committee monitors such transactions and reviews the risks involved.

Standalone
Financial
Statements
Notes

The derivative transactions are accounted in accordance with IND AS 109 and the accounting policy for recording
hedge and non hedge transactions and valuation of outstanding contracts detailed in Note 3.7
Quantitative disclosures
Particulars Currency Interest rate Currency Interest rate
derivatives derivatives derivatives derivatives
(i) Derivatives (Notional principal amount)
For hedging 50,109.57 6,000.00 80,342.56 Nil
(ii) Marked to market positions
a) Asset Nil Nil 605.01 Nil
b) Liability 1,869.20 23.21 4,797.97 Nil
(iii) Credit exposure Nil Nil Nil Nil
(iv) Unhedged exposures Nil Nil Nil Nil
The quantitative disclosures above relate to Currency Derivatives and Interest Rate Derivatives as detailed in Note 6
9 d) Disclosure relating to securitisation

As at As at
Particulars
March 31, 2023 March 31, 2022
i) Disclosure relating to securitisation Nil Nil

274
9 e) Asset Liability Management

Maturity pattern of certain items of assets and liabilities

Non
15 days Over 1 Over 2 Over 3 Over 6
1 to 7 8 to 14 Over 1 year Over 3 to Over 5 sensitive
As at 31.03.2023 to 30/31 month to months to months to 6 months to 1 Total
days days to 3 year 5 years years to ALM
days 2 months 3 months months year
**

Liabilities
Deposits N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A
Borrowings(excluding External 2,841.71 47.04 14,235.52 4,932.15 57,943.71 56,947.82 140,523.76 146,294.98 22,811.64 5,860.65 (266.70) 452,172.30
Commercial Borrowings-Senior
Secured Notes)
Foreign Currency Liabilities(External - - - - - 45,359.21 - - - - (22.72) 45,336.49
Commercial Borrowing-Senior
Secured Notes including interest
Assets
accrued but not due)
Advances* 30,587.60 30,403.64 69,800.13 96,983.64 78,229.61 152,121.63 147,835.10 14,148.62 22,843.39 19.35 (323.91) 642,648.80
Investments - - - 2.37 22.71 16.81 10.00 - - 11,964.56 - 12,016.45
Foreign Currency assets - - - - - - - - - 1,152.13 - 1,152.13
*Contracted tenor of gold loan is maximum of 12 months. However, on account of high incidence of prepayment before contracted maturity, the above maturity profile has been prepared by the
management on the basis of historical pattern of repayments. In case of loans other than gold loan, the maturity profile is based on contracted maturity.
**represents adjustments on account of EIR/ECL
15 days Over 1 Over 2 Over 3 Over 6 Non

1 to 7 8 to 14 Over 1 year Over 3 to Over 5
As at 31.03.2022 to 30/31 month to months to months to 6 months to 1 sensitive Total
days days to 3 year 5 years years
days 2 months 3 months months year to ALM **
Liabilities
Deposits N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A
Borrowings(excluding External 13,837.98 2,018.10 13,358.25 17,558.52 57,297.96 56,849.46 87,366.90 150,679.03 18,623.70 5,318.44 (459.06) 422,449.28
Commercial Borrowings-Senior
Secured Notes)
Foreign Currency Liabilities(External - - 870.43 - - 152.85 34,106.63 41,685.88 - - (129.29) 76,686.50
Commercial Borrowing-Senior
Secured Notes including interest
Assets
accrued but not due)
Advances* 25,017.41 24,973.25 57,303.06 74,463.87 63,096.11 155,860.85 179,212.71 18,737.08 713.10 27.76 (5,562.86) 593,842.34
Investments - - - 1.58 16.97 6.63 10.00 20.00 - 11,819.05 - 11,874.23
Foreign Currency assets - - - - - - - - - 1,330.60 - 1,330.60
*Contracted tenor of gold loan is maximum of 12 months. However, on account of high incidence of prepayment before contracted maturity, the above maturity profile has been prepared by the
management on the basis of historical pattern of repayments. In case of loans other than gold loan, the maturity profile is based on contracted maturity.
**represents adjustments on account of EIR/ECL

Standalone
Financial
Statements
Notes

9 f) Exposures
i) Exposure to Real Estate Sector

As at As at
Category
March 31, 2023 March 31, 2022
i) Direct exposure (Net of Advances from Customers)
(a) Residential Mortgages -
Lending fully secured by mortgages on residential property that is or will be 21.65 31.86
occupied by the borrower or that is rented. Exposure would also include non-fund
based (NFB) limits.
(b) Commercial Real Estate -
Lending secured by mortgages on commercial real estates (office buildings, retail Nil Nil
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;
(c) Investments in Mortgage Backed Securities (MBS) and other securitised exposures
-
a. Residential, Nil Nil
b. Commercial Real Estate Nil Nil
ii) Indirect Exposure

Fund based and non-fund based exposures on National Housing Bank and Housing 1,940.91 1,466.41
Finance Companies
Total Exposure to Real Estate Sector 1,962.56 1,498.27
ii) Exposure to Capital Market

As at As at
Particulars
March 31, 2023 March 31, 2022
i) Direct investment in equity shares, convertible bonds, convertible debentures 0.03 0.02
and units of equity-oriented mutual funds the corpus of which is not exclusively
invested in corporate debt
ii) Advances against shares / bonds / debentures or other securities or on clean basis Nil Nil
to individuals 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 Nil Nil
debentures or 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 Nil Nil
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 Nil Nil
of stockbrokers and market makers
vi) Loans sanctioned to corporates against the security of shares /bonds / debentures Nil Nil
or other 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 Nil Nil
viii) Underwriting commitments taken up by the NBFCs in respect of primary issue of Nil Nil
share or convertible bonds or convertible debentures or units of equity oriented
mutual funds

Notes

As at As at
Particulars
March 31, 2023 March 31, 2022
ix) Financing to stockbrokers for margin trading Nil Nil
x) All exposures to Alternative Investment Funds:
(i) Category I Nil Nil
(ii) Category II Nil Nil
(iii) Category III Nil Nil
Total Exposure to Capital Markets 0.03 0.02
iii) Details of financing of parent company products: Not Applicable
iv) Details of Single Borrower Limit(SGL)/ Group Borrower Limit(GBL) exceeded by the Company
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Nil Nil
v) Total amount of advances for which intangible securities such as charge over the rights, licenses, authority
etc has been taken and which is to be classified as Unsecured Advances
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Nil Nil
9 g) Registration obtained from financial sector regulators

Sl.
Regulator Registration Number
No
1 Reserve Bank of India Certificate of Registration No. N 16.00167
9 h) Penalties levied by the above Regulators

Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Penalties levied by Regulators Nil Nil
9 i) Ratings assigned by Credit Rating Agencies

Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Commercial paper CRISIL A1+, ICRA A1+ CRISIL A1+, ICRA A1+
2 Bank Loans - Working Capital Demand Loans ICRA A1+ ICRA A1+
3 Bank Loans - Cash Credit ICRA AA+(Stable) ICRA AA+(Stable)
4 Bank Term Loans ICRA AA+(Stable) ICRA AA+(Stable)
5 Non Convertible Debentures- Long term CRISIL AA+/Stable, CRISIL AA+/Stable,
ICRA AA+(Stable) ICRA AA+(Stable)
6 Subordinated Debt CRISIL AA+/Stable, CRISIL AA+/Stable,
ICRA AA+(Stable) ICRA AA+(Stable)

Standalone
Financial
Statements
Notes

Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
7 International Ratings
(i) Fitch Ratings BB(Stable) BB(Stable)
(ii) S&P Global BB(Stable) BB(Negative)
(iii) Moody's Investors Service Ba2(Stable) Ba2(Stable)
Details of migration of credit ratings during the year

Sl.
Particulars Rating Agency Rating Assigned Migration in rating during the year
No
1 International Ratings S&P Global BB(Stable) Change in outlook from BB(Negative) to BB(Stable)
9 j) Provisions and Contingencies

Sl. Break up of Provisions and Contingencies shown under the head Expenses in the As at As at
No Statement of Profit and Loss March 31, 2023 March 31, 2022
1 Provisions for depreciation on Investment Nil Nil
2 Provision towards Expected Credit Loss 426.00 979.10
3 Provision for Income Tax 11,928.95 13,550.49
4 Other Provision and Contingencies (with details)
Provision for Leave Encashment 29.38 (32.34)
Provision for Other Assets 10.11 1.94
9 k) Concentration of Advances
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Total Advances to twenty largest borrowers 4,115.38 1,033.55
2 Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 0.65% 0.18%
9 l) Concentration of Exposures
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Total Exposures to twenty largest borrowers/customers 6,036.93 1,033.55
2 Percentage of Exposures to twenty largest borrowers/Customers to Total 0.95% 0.18%
Exposures of the NBFC on borrowers/Customers.
9 m) Concentration of NPAs*
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Total Exposures to top four NPA accounts 35.20 32.61
*Stage 3 loans assets under IND AS

Notes

9 n) Sector-wise NPAs
Total Exposure Percentage Total Exposure Percentage
Sl. (Includes on of Gross (Includes on of Gross
Sector
No. balance sheet Gross NPAs NPAs to Total balance sheet Gross NPAs NPAs to Total
and off-balance Exposure in and off-balance Exposure in
sheet exposure) that sector sheet exposure) that sector
1 Agriculture & allied activities - - 0.00% - - 0.00%
2 Industry
i.
ii
Others
Total of Industry - - 0.00% - - 0.00%
3 Services
Others 6,155.48 12.59 1,839.38 14.75
Total of Services 6,155.48 12.59 0.20% 1,839.38 14.75 0.80%
4 Personal Loans
Others 7,112.78 94.78 3,348.48 76.54
Total of Personal Loans 7,112.78 94.78 1.33% 3,348.48 76.54 2.29%
Others
5 Gold Loans 637,038.17 23,878.59 595,873.38 17,280.96
Total of Others 637,038.17 23,878.59 3.75% 595,873.38 17,280.96 2.90%
9 o) Movement of NPAs*
Sl. As at As at
Particulars
No. March 31, 2023 March 31, 2022
(i) Net NPAs* to Net Advances (%) 3.45% 2.71%
(ii) Movement of NPAs* (Gross)
(a) Opening balance 17,372.24 4,641.39
(b) Additions during the year 22,431.41 16,796.88
(c) Reductions during the year 15,817.70 4,066.02
(d) Closing balance 23,985.96 17,372.24
(iii) Movement of Net NPAs*
(a) Opening balance 15,532.83 4,035.88
(b) Additions during the year 21,806.11 15,562.96
(c) Reductions during the year 15,817.70 4,066.02
(iv) Movement of provisions for NPAs* (excluding Provisions on Standard Assets)
(a) Opening balance 1,839.41 605.51
(b) Provisions made during the year 625.30 1,233.91
(c) Write-off / write -back of excess provisions - -
Additions/ Reductions to NPA (Gross and Net) stated above during the year are based on year end figures.
* Stage 3 loan assets under IND AS.

Standalone
Financial
Statements
Notes

9 p) Overseas Assets As at March 31, 2023
Sl. Total assets As at Total assets As at
Name of the Entity Country
No March 31, 2023 March 31, 2022
1 Asia Asset Finance PLC Sri Lanka 700.10 700.10
2 Nabil Bank Limited Nepal 452.03 630.50
9 q) Off-balance Sheet SPVs sponsored
Sl. As at As at
Name of the Entity
No March 31, 2023 March 31, 2022
a) Domestic Nil Nil
b) Overseas Nil Nil
9 r) Disclosure of complaints
i) Summary information on complaints received by the NBFCs from customers and from the Offices of
Ombudsman
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
Complaints received by the NBFC from its customers
1 Number of complaints pending at beginning of the year 10 -
2 Number of complaints received during the year 997 1,033
3 Number of complaints disposed during the year 1,006 1,023
3.1 Of which, number of complaints rejected by the NBFC 191 -
4 Number of complaints pending at the end of the year 1 10
Maintainable complaints received by the NBFC from Office of Ombudsman
5* Number of maintainable complaints received by the NBFC from Office of 275 221
Ombudsman
5.1 Of 5, number of complaints resolved in favour of the NBFC by Office of 261 219
Ombudsman
5.2 Of 5, number of complaints resolved through conciliation/mediation/ 14 2
advisories issued by Office of Ombudsman
5.3 Of 5, number of complaints resolved after passing of Awards by Office of - -
Ombudsman against the NBFC
6* Number of Awards unimplemented within the stipulated time (other than - -
those appealed)
Note: Maintainable complaints refer to complaints on the grounds specifically mentioned in Integrated Ombudsman Scheme, 2021
(Previously The Ombudsman Scheme for Non-Banking Financial Companies, 2018) and covered within the ambit of the Scheme.
* It shall only be applicable to NBFCS which are included under The Reserve Bank - Integrated Ombudsman Scheme, 2021

Notes

ii) Top five grounds of complaints received by the NBFCs from customers
% increase/
Number of
Number of decrease in Number of Of 5, number
Grounds of complaints, complaints
complaints the number complaints of complaints
(i.e. complaints pending at the
received during of complaints pending at the end pending beyond
relating to) beginning of the
the year received over the of the year 30 days
year
previous year
(1) (2) (3) (4) (5) (6)
Loans & Advances 3 775 -8.28% - -
Staff behavior - 35 75.00% - -
Others 7 187 11.31% 1 -
Total 10 997 -3.48% 1 -
Loans and Advances - 845 9.03% 3 -
Staff behaviour - 20 122.22% - -
Others - 168 -38.46% 7 -
Total - 1,033 -2.27% 10 -
9 s) Intra-group exposures
Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
i) Total amount of intra group exposures 4,540.91 480.00
ii) Total amount of top 20 intra-group exposures 4,540.91 480.00
iii) Percentage of intra- group exposures to total exposure of the NBFC on borrowers/ 0.72% 0.08%
customers
9 t) Unhedged Foreign currency exposure

Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
1 Unhedged Foreign Currency Exposure Nil Nil
Refer note 42(iii)c & 52(9)c
10 Percentage of loans granted against collateral of gold jewellery to total assets

Sl. As at As at
Particulars
No March 31, 2023 March 31, 2022
(a) Gold Loans granted against collateral of gold jewellery 618,753.19 575,313.13
(b) Total assets of the Company 726,198.14 705,546.88
(c) Percentage of Gold Loans to Total Assets 85.20% 81.54%

Standalone
Financial
Statements
Notes

11 Breach of Covenant
During the financial year ended March 31, 2023, no bank or financial institution or debenture trustee has issued any notice
of breach of covenant in respect of loans availed or debt securities issued by the Company.
12 Divergence in Asset Classification and Provisioning as assessed/ identified by RBI

Sl. As at As at
Particulars
No March 31, 2022 March 31, 2021
(a) The additional provisioning requirements assesssed by RBI (or National Housing Bank Nil Nil
(NHB) in the case of Housing Finance Companies) exceeds 5 percent of the reported profits
before tax and impairment loss on financial instruments for the reference period or
(b) the additional Gross NPAs identified by RBI/NHB exceeds 5 per cents of the reported Nil Nil
Gross NPA for the reference period.
Note 53: Disclosure required as per Reserve Bank of India Notification No. DOR (NBFC). CC . PD.
No.109/ 22.10.106 /2019-20 dated March 13, 2020
In accordance with the regulatory guidance on implementation of Ind AS issued by RBI on March 13, 2020, the company has
computed provisions as per Income Recognition Asset Classification and Provisioning (IRACP) norms issued by RBI solely
for comparative purposes as specified therein. A comparison between provisions required under IRACP and impairment
allowances made under Ind AS 109 is given below:

Asset
Asset Classification as per RBI classification Loss Allowances Difference
Gross Carrying Provisions
Norms as per Ind AS (Provisions) as Net Carrying between Ind AS
Amount as per required as per
109 required under Amount 109 provisions
Ind AS IRACP norms
Ind AS 109 and IRACP norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7)=(4)-(6)
Performing Assets
Standard Stage 1 616,703.14 5,092.92 611,610.22 2,350.55 2,742.37
Stage 2 9,941.24 99.98 9,841.26 27.05 72.93
Subtotal 626,644.38 5,192.90 621,451.48 2,377.60 2,815.30
Non-Performing Assets
(NPA)
Substandard Stage 3 22,463.47 2,289.12 20,174.35 3,589.80 (1,300.68)
Doubtful - up to 1 year Stage 3 1,153.22 122.63 1,030.59 286.27 (163.64)
1 to 3 years Stage 3 162.79 17.84 144.95 51.62 (33.78)
More than 3 years Stage 3 206.47 35.12 171.35 125.40 (90.28)
Subtotal for doubtful 1,522.48 175.59 1,346.89 463.29 (287.70)
Loss Stage 3 - - - - -
Subtotal for NPA 23,985.95 2,464.71 21,521.24 4,053.09 (1,588.38)
Other items such Stage 1 9,549.28 6.88 9,542.40 - 6.88
as guarantees, loan
commitments, etc. which
are in the scope of Ind AS
109 but not covered under
current Income Recognition,
Asset Classification and
Provisioning (IRACP) norms

Notes

Asset
Asset Classification as per RBI classification Loss Allowances Difference
Gross Carrying Provisions
Norms as per Ind AS (Provisions) as Net Carrying between Ind AS
Amount as per required as per
109 required under Amount 109 provisions
Ind AS IRACP norms
Ind AS 109 and IRACP norms
Stage 2 - - - - -
Stage 3 - - - - -
Subtotal 9,549.28 6.88 9,542.40 - 6.88

Total Stage 1 626,252.42 5,099.80 621,152.62 2,350.55 2,749.25
Stage 2 9,941.24 99.98 9,841.26 27.05 72.93
Stage 3 23,985.95 2,464.71 21,521.24 4,053.09 (1,588.38)
Total 660,179.61 7,664.49 652,515.12 6,430.69 1,233.80
The aggregate impairment loss on application of expected credit loss method (ECL) as per lnd AS, as stated above, is more
than the provisioning required under IRACP norms (including standard asset provisioning). Further, as stated in Note 19.1 the
company has retained provision in excess of ECL in the books of account as a matter of prudence.
Note 54: Disclosure on Liquidity Coverage Ratio

Disclosure as per the circular no. RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20 dated November 04, 2019
issued by Reserve Bank of India regarding Liquidity Coverage Ratio (LCR)
Maintenance of Liquidity Coverage Ratio (LCR)

Reserve Bank Of India vide its notification no. RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/ 2019-20 dtd November
04,2019 introduced Liquidity Coverage Ratio for certain categories of NBFCs w.e.f December 01,2020 . All non-deposit taking
NBFCs with asset size of ₹10,000 crore and above, and all deposit taking NBFCs irrespective of their asset size, shall maintain a
liquidity buffer in terms of LCR which will promote resilience of NBFCs to potential liquidity disruptions by ensuring that they
have sufficient High Quality Liquid Asset (HQLA) to survive any acute liquidity stress scenario lasting for 30 days. The stock of
HQLA to be maintained by the NBFCs shall be minimum of 100% of total net cash outflows over the next 30 calendar days. The
LCR requirement shall be binding on NBFCs from December 1, 2020 with the minimum HQLAs to be held being 50% of the LCR,
progressively reaching up to the required level of 100% by December 1, 2024, as per the time-line given below:
From December 1, 2020 December 1, 2021 December 1, 2022 December 1, 2023 December 1, 2024
Minimum LCR 50% 60% 70% 85% 100%

Standalone
Financial
Statements
Notes

A) Quantitative Disclosure
Quarter ended Quarter ended Quarter ended September Quarter ended
March 31, 2023 December 31, 2022 30, 2022 June 30, 2022
Particulars Total Total Total Total Total Total Total Total

Unweighted weighted Unweighted weighted Unweighted weighted Unweighted weighted
Value Value Value Value Value Value Value Value
(Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average)
High Quality Liquid Assets
1 Total High Quality 39,191.89 39,191.89 49,388.42 49,388.42 46,242.14 46,242.14 50,115.83 50,115.83
Liquid Assets (HQLA)
Cash Outflows
2 Deposits (for deposit Not Not Not Not Not Not Not Not
taking companies) Applicable Applicable Applicable Applicable Applicable Applicable Applicable Applicable
3 Unsecured wholesale 165.01 189.76 64.82 74.55 82.43 94.80 3,278.71 3,770.51
funding
4 Secured wholesale 26,191.95 30,120.75 26,164.09 30,088.71 20,580.88 23,668.01 28,258.36 32,497.11
funding
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 8,919.96 10,257.96 8,192.50 9,421.37 11,463.30 13,182.79 18,869.83 21,700.30
facilities
6 Other contractual 4,800.00 5,520.00 4,760.00 5,474.00 4,890.00 5,623.50 4,820.00 5,543.00
funding obligations
7 Other contingent 102.18 117.51 151.36 174.06 125.39 144.20 116.33 133.79
funding obligations
8 Total Cash Outflows 40,179.10 46,205.98 39,332.77 45,232.69 37,142.00 42,713.30 55,343.23 63,644.71
Cash Inflows
9 Secured lending - - - - - - - -
10 Inflows from fully 134,026.60 100,519.95 126,881.75 95,161.31 170,079.78 127,559.83 174,055.91 130,541.94
performing exposures
11 Other cash inflows 23,138.89 17,354.17 13,196.20 9,897.15 2,866.85 2,150.14 3,887.36 2,915.52
12 Total Cash Inflows 157,165.49 117,874.12 140,077.95 105,058.46 172,946.63 129,709.97 177,943.27 133,457.46
13 Total HQLA 39,191.89 49,388.42 46,242.14 50,115.83

14 Total Net Cash 11,551.50 11,308.17 10,678.33 15,911.18
Outflows
15 Liquidity Coverage 339% 437% 433% 315%
Ratio (%)

Notes

Components of High Quality Liquid Assets
Quarter ended Quarter ended Quarter ended Quarter ended
March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022

1 Assets included as HQLA 39,191.89 39,191.89 49,388.42 49,388.42 46,242.14 46,242.14 50,115.83 50,115.83
without any haircut
2 Assets considered for HQLA - - - - - - - -
with a minimum haircut of
15%
3 Assets considered for HQLA - - - - - - - -
with a minimum haircut of
50%


High Quality Liquid Assets
1 Total High Quality 53,466.07 53,466.07 49,952.41 49,952.41 56,600.08 56,600.08 61,504.95 61,504.95
Liquid Assets (HQLA)
Cash Outflows
2 Deposits (for deposit Not Not Not Not Not Not Not Not
taking companies) Applicable Applicable Applicable Applicable Applicable Applicable Applicable Applicable
3 Unsecured wholesale 2,950.92 3,393.55 11,543.51 13,275.03 14,662.91 16,862.35 11,391.15 13,099.82
funding
4 Secured wholesale 33,573.76 38,609.82 33,571.67 38,607.42 24,994.04 28,743.15 32,488.60 37,361.89
funding
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 15,321.25 17,619.44 13,307.28 15,303.37 12,446.98 14,314.03 11,417.96 13,130.65
facilities
6 Other contractual 4,880.00 5,612.00 4,960.00 5,704.00 4,970.00 5,715.50 4,870.00 5,600.50
funding obligations
7 Other contingent 98.98 113.83 98.62 113.41 98.69 113.49 100.61 115.70
funding obligations
8 Total Cash Outflows 56,824.91 65,348.64 63,481.08 73,003.23 57,172.62 65,748.52 60,268.32 69,308.56

Standalone
Financial
Statements
Notes


Cash Inflows
9 Secured lending - - - - - - - -
10 Inflows from fully 163,068.08 122,301.06 191,224.05 143,418.04 205,417.22 154,062.92 165,329.47 123,997.11
performing exposures
11 Other cash inflows 2,544.44 1,908.33 4,923.91 3,692.93 24,195.65 18,146.74 23,763.74 17,822.80
12 Total Cash Inflows 165,612.52 124,209.39 196,147.96 147,110.97 229,612.87 172,209.66 189,093.21 141,819.91
13 Total HQLA 53,466.07 49,952.41 56,600.08 61,504.95
14 Total Net Cash 16,337.16 18,250.81 16,437.13 17,327.14
Outflows
15 Liquidity Coverage 327% 274% 344% 355%
Ratio (%)
Components of High Quality Liquid Assets

Quarter ended Quarter ended Quarter ended Quarter ended
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021

1 Assets included as 53,466.07 53,466.07 49,952.41 49,952.41 56,600.08 56,600.08 61,504.95 61,504.95
HQLA without any
haircut
2 Assets considered for - - - - - - - -
HQLA with a minimum
haircut of 15%
3 Assets considered for - - - - - - - -
HQLA with a minimum
haircut of 50%
Note:
1) Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for Cash inflows and Cash
outflows).
2) Weighted values are calculated after the application of respective haircuts (for HQLA) and stress factors (on cash inflow/
cash outflow) as per RBI guidelines.
3) ‘Average’ for all the quarters is computed as simple averages of daily observations for the quarter.
4) The figures used for the quantitative disclosure are based on the estimates and assumptions of the management, which
have been relied upon by the auditors.

Notes

B) Qualitative Disclosure
The Company has adopted Liquidity Risk Management (LRM) framework on liquidity standards as prescribed by the RBI
guidelines and has put in place requisite systems and processes to enable periodical computation and reporting of the
Liquidity Coverage Ratio (LCR). The mandated regulatory threshold is embedded into the Liquidity Risk Management
framework of the Company thus subjecting LCR maintenance to Board oversight and periodical review. The Company
computes the LCR and reports the same to the Asset Liability Management Committee (ALCO) as well as to the ALM
Committee of the Board.
The Company follows the criteria laid down by RBI for calculation of High Quality Liquid Assets (HQLA), gross cash
outflows and inflows within the next 30-day period. HQLA predominantly comprises unencumbered Cash and Bank
balances, Government securities (viz., Treasury Bills, Central and State Government securities, Investments in TREPs
(Triparty Repo trades in Government Securities provided by The Clearing Corporation of India)).
All significant outflows and inflows determined in accordance with RBI guidelines are included in the prescribed LCR
computation template.
The Company monitors the concentration of funding sources from significant counterparties, significant instruments/
products as part of the LRM framework. The Company follows internal limits on short term borrowings which form part
of the LRM framework. The Company’s funding sources are fairly dispersed across sources and maturities.
The Board shall have the overall responsibility for management of liquidity risk. The Board shall decide the strategy,
policies and procedures to manage liquidity risk in accordance with the liquidity risk tolerance/limits decided by it from
time to time.
The ALM Committee of the Board of Directors shall be responsible for evaluating the liquidity risk.
The Asset-Liability Management Committee (ALCO) consisting of the NBFC’s top management shall be responsible for
ensuring adherence to the risk tolerance/limits set by the Board as well as implementing the liquidity risk management
strategy of the NBFC. The Managing Director heads the Committee. The role of the ALCO with respect to liquidity risk
include, inter alia, decision on desired maturity profile and mix of incremental assets and liabilities, sale of assets as a
source of funding, the structure, responsibilities and controls for managing liquidity risk, and overseeing the liquidity
positions of the Company.
The ALM Support Group headed by Chief Financial Officer and consisting of operating staff will be responsible for
analysing, monitoring and reporting the liquidity risk profile to the ALCO.

Standalone
Financial
Statements
Notes

Note 55: Disclosure pursuant to RBI Notification-RBI/2020-21/16 DOR.NO.BP.BC/3/21.04.048/2020-21
dated 6 August 2020 and RBI/2021- 22/31/DOR.STR.REC.11 /21.04.048/2021-22 dated May 05, 2021
Exposure to accounts
Exposure to accounts
classified as Standard
classified as Standard
consequent to Of (A), aggregate
Of (A) amount Of (A) amount paid by consequent to
implementation of debt that slipped
Type of borrower written off during the borrowers during implementation of
resolution plan– into NPA during
the half-year (C) the halfyear (D) resolution plan –
Position as at the end the half-year (B)
Position as at the end
of the previous
of this half-year (E) *
half-year (A)
Personal Loans 0.46 0.44 - 0.02 0.44
Corporate Persons - - - - -
Of which MSMEs - - - - -
Others - - - - -
Total 0.46 0.44 - 0.02 0.44
*represents the closing balance of loan accounts as on 31 March 2023
Note 56: Details of Benami Property Held

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 rules made thereunder in the financial years ended March 31, 2023 and
March 31, 2022.
Note 57: Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial
years ended March 31, 2023 and March 31, 2022.
Note 58: Relationship with struck off Companies

The company has no transaction with the companies struck off under section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956.

Notes

Note 59: Registration of Charges or satisfaction with Registrar of Companies (ROC)
All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2023
and March 31, 2022. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.
Note 60: Compliance with number of layers of companies

The number of layers prescribed under section 2(87) of the Companies Act 2013 read with the Companies (Restriction on
number of Layers) Rules, 2017, is not applicable to the company
Note 61: Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any Scheme of Arrangements which requires the approval of the Competent Authority in
terms of sections 230 to 237 of the Companies Act,2013 for the financial years ended March 31, 2023 and March 31, 2022.
Note 62: Utilisation of Borrowed funds and Share premium

The Company, as part of its normal business, grants loans and advances, makes investment, accept non-convertible debentures
from its customers, other entities and persons and borrows money from banks, financial institutions, other entities and persons.
These transactions are part of Company’s normal non-banking finance business, which is conducted ensuring adherence to all
regulatory requirements.
We state that no funds 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 any other persons or entities, including foreign entities (“Intermediaries”) with
the understanding, whether recorded in writing or otherwise, that the Intermediary 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 to or on behalf of the ultimate beneficiaries.
The Company has not received any funds from any other persons or entities, including foreign entities (Funding Party) 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.

Standalone
Financial
Statements
Notes

Note 63: Undisclosed Income
The company does not have any transaction that are not recorded in the books of account but has been surrendered or disclosed
as income during the year in tax assessments under the Income tax Act, 1961 (such as search or survey or any other relevant
provision under Income Tax Act 1961) and there was no instance of previously unrecorded income as above to be recorded in
the books of accounts during the year.
Note 64: Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31,
2023 and March 31, 2022.
Note 65: Impact of COVID-19

The global outbreak of Coronavirus (COVID-19) pandemic has not caused any significant impact on the operations and financial
position of the Company for the year and previous year.
Hence in the opinion of the management the impairment loss as stated in Note 8 and provision as stated in Note 19.1 are
considered adequate.
Note 66: Other Developments

The Code on Social Security, 2020 (the Code) has been enacted, which would impact contribution by the Company towards
Provident Fund and Gratuity. The impact of changes if any arising on enactment of the Code will be assessed by the company
after the effective date of the same and the rules thereunder are notified.

Notes
Note 67: Previous year’s figures have been regrouped/rearranged, wherever necessary to conform to current year’s
classifications/disclosure.
(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-
sd/- sd/-
Date: May 19, 2023 Date: May 19, 2023

Standalone
Financial
Statements
Form AOC-1
“(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)”
“Statement containing salient features of the financial statement of subsidiaries/ associate companies/ joint ventures”
“Part “A”: Subsidiaries

Sl.No. Particulars Details Details Details Details Details Details Details
1 Name of the Asia Asset Muthoot Belstar Muthoot Muthoot Money Muthoot Asset Muthoot Trustee
subsidiary Finance PLC Homefin (India) Microfinance Insurance Limited Management Private Limited
Limited Limited Brokers Private Limited
Private Limited
2 Reporting period Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
for the subsidiary
concerned, if different
from the holding
company’s reporting
period
3 Reporting currency LKR , Exchange ₹ (in millions) ₹ (in millions) ₹ (in thousands) ₹ (in millions) ₹ (in thousands) ₹ (in thousands)
and Exchange rate Rate as on
as on the last date of March 31, 2023
the relevant Financial – 0.24970
year in the case of / Average
foreign subsidiaries Exchange Rate
- 0.23695*
(₹ in millions)
4 Share capital 550.70 1,191.56 488.44 7,500.00 62.17 1,000,000.00 10,000.00
5 Reserves & surplus 201.10 3,383.11 10,434.55 1,580,602.38 975.83 141,271.02 218.56
6 Total assets 6,245.63 12,110.58 62,269.01 1,625,207.99 4,342.20 1,141,325.02 10,244.56
7 Total Liabilities 5,493.83 7,535.91 51,346.02 37,105.61 3,304.20 54.00 26.00
8 Investments 917.16 44.25 528.64 313,688.40 - - -
9 Turnover 1,433.20* 1,548.11 10,379.15 677,675.96 564.01 62,399.33 448.28
10 Profit before taxation 85.22* 140.66 1,693.07 606,536.36 3.40 62,100.75 333.73
11 Provision for taxation 15.24* 36.68 389.82 142,758.78 0.99 15,641.98 61.71
12 Profit after taxation 69.98* 103.98 1,303.25 463,777.58 2.41 46,458.77 272.02
13 Proposed Dividend Nil Nil ₹ 0.60 per Nil Nil Nil Nil
share
14 % of shareholding 72.92% 100.00% 56.97% 100.00% 100.00% 100.00% 100.00%
Notes:
1 Names of subsidiaries which are yet to commence operations: Not Applicable
2 Names of subsidiaries which have been liquidated or sold during the year: Not Applicable
Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures.
Not Applicable
For and on behalf of the Board of Directors
sd/- sd/-
Chairman & Whole-time Director Managing Director
DIN: 00018235 DIN: 00016787
sd/- sd/-
Place: Kochi Oommen K. Mammen Rajesh A
Date: May 19, 2023 Chief Financial Officer Company Secretary

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

Consolidated
Financial
Statements
A) Key Audit Matters with reference to the Holding Company

1. Expected Credit Loss under IND AS 109 “Financial • Assessed the accounting policy for impairment of financial assets and its
Instruments” compliance with IND AS 109.

T he Company recognises Expected Credit Losses • Obtained an understanding of the Company’s Expected Credit Loss (ECL)
(ECL) on loan assets under IND AS 109 “Financial calculation and the underlying assumptions.
Instruments” based on the Expected Credit Loss model • Tested the key controls over the assessment and identification of
developed by the Company. The estimation of expected significant increase in credit risk and staging of assets.
credit loss on financial instruments involves significant
judgement and estimates. Key estimates involve • Sample testing of the accuracy and appropriateness of information used
determining Exposure at Default (EAD), Probability in the estimation of Probability of Default (PD) and Loss Given Default
at Default(PD) and Loss Given Default (LGD) using (LGD).
historical information. Hence, we have considered the • Tested the arithmetical accuracy of the computation of PD and LGD and
estimation of ECL as a Key Audit Matter. also performed analytical procedures to verify the reasonableness of the
Refer Note 44 (Risk Management) to the consolidated computation.
financial statements. • Assessed the disclosure made in relation to IND AS 109 for ECL
allowance. Further, we also assessed whether the disclosure of key
judgements and assumptions are adequate.
2. Related Party Transactions • Evaluated the Company’s policies, processes and procedures in respect of
We identified related party transactions as a key identifying and disclosing related party transactions.
audit matter due to the significance of related party • Read the minutes of meetings of the shareholders, Board and Audit
transactions, regulatory compliance and risk of such Committee regarding the Company’s assessment of related party
transactions remaining undisclosed in the financial transactions for arm’s length pricing.
statements. • Assessed the compliance with Companies Act 2013, including
authorisation and approvals as specified in sections 177 and 188 of the
Companies Act, 2013, and Rules thereon and the Securities and Exchange
Board of India regulations with respect to related party transactions.
• Tested on a sample basis related party transactions with the underlying
contracts and other documents.
3. Compliance and disclosure requirements • Assessed the systems and processes laid down by the Company to
Compliance and disclosure requirements under the appropriately ensure compliance and disclosures as per the applicable
applicable Indian Accounting Standards, Reserve Bank Ind AS, RBI guidelines and other applicable statutory, regulatory and
of India (RBI) guidelines and other applicable statutory, financial reporting framework.
regulatory and financial reporting framework. • Designed and performed audit procedures to assess the completeness
and correctness of the details disclosed having regard to the
assumptions made by the Management in relation to the applicability and
extent of disclosure requirements.
• Relied on internal records of the Company and external confirmations
wherever necessary.
4. Litigations In assessing the litigations, we have:
The Company has various tax litigations pending under • Read the communications with the relevant tax authorities in respect to
the Income Tax Act, 1961, Goods and Services Tax Act, the pending tax litigations and also considered the submissions made by
2017, service tax under Finance Act, 1994 and Value the management to the respective appellate authorities.
Added Tax Acts of various States. The Company has • We verified the accuracy of the disputed amounts with the relevant
disputed these in various forums and the outcome of communication from the tax authority.
these cases will depend on significant judgements,
hence we have identified pending litigation as a Key
Audit Matter.
5. IT Systems and Controls • Understood the IT systems and controls over key financial accounting
The Company uses Information Technology (IT) and reporting systems.
application for financial accounts and reporting process. • Tested the general IT controls for design and operating effectiveness.
Any gap in the financial accounting and reporting • Understood the changes made in the IT environment during the year and
process may result in a misstatement, hence we have ascertained its effect on the financial statements controls and accounts.
identified IT systems and controls over financial
reporting as a Key Audit Matter. • We also assessed, through sample tests, the information generated from
these systems which were relied upon for our audit.

B) Key Audit Matters with reference to subsidiaries
There are no specific key audit matters reported to us by the auditors of the subsidiary companies not audited by us,
except as reported by the auditors of three subsidiary companies in their standalone audit report and reproduced by us,
as below:
(i) In respect of the subsidiary, Belstar Microfinance Limited

Expected Credit Losses on loan assets Our audit focused on assessing the appropriateness of Management’s
As on March 31, 2023, the Company has reported gross loan judgement and estimates used in the impairment analysis through procedures
assets of ₹47,232.39 million against which an impairment that included, but were not limited to, the following;
loss of ₹957.03 million has been recorded. The Company • Obtain an understanding of the modelling techniques adopted by the
recognised impairment provisions for loan assets based on Company including the key inputs and assumptions. Since modelling
the Expected Credit Loss approach laid down under ‘Ind AS assumptions and parameters are based on historical data, we
109 – Financial Instruments’. assessed whether historical experience was representative of current
The Expected Credit Loss (‘ECL’) approach as required circumstances and was relevant in view of the recent impairment losses
under Ind AS 109, Financial instruments, involves high incurred within the portfolios.
degree of complexity requiring significant judgement of • Considered the Company’s accounting policies for estimation of expected
the Management and the use of the different modelling credit loss on loans and assessing compliance with the policies in terms of
techniques and assumptions which could have a material Ind AS 109.
impact on the accompanying financial statements. • Assessed and tested the design and operating effectiveness of the key
The Management is required to determine the ECL that may controls over the completeness and accuracy of the key inputs and
occur over either a 12-month period or the remaining life of assumptions considered for calculation, recording and monitoring of
an asset, depending on the categorization of the individual the impairment loss recognised. Also, evaluated the controls over the
asset. Significant management judgement and assumptions modelling process, validation of the data and related approvals.
involved in measuring ECL include: • Performed a critical assessment of assumptions and input data used
• Categorisation of loans in Stage 1, 2 and 3 based on in the estimation of Expected Credit Loss models for specific key credit
identification of exposures with Significant Increase in risk parameters, such as the transfer logic between stages, Probability of
Credit Risk (SICR) since their origination and individually Default (PD) or Loss Given Default (LGD);
impaired/default exposures. • Performed an assessment of the adequacy of the credit losses expected
• Techniques used to determine Probability of Default, within 12 months by reference to credit losses actually incurred on
Loss Given Default and Exposure at Default. similar portfolios historically.
• Factoring in future economic assumptions. • Obtained written representations from management on whether they
These parameters are derived from the Company’s internally believe significant assumptions used in calculation of expected credit
developed statistical models, other historical data and trends losses are reasonable; and
observed in macro-economic factors. • Assessed the appropriateness and adequacy of the related presentation
Considering the significance of the above matters to the and disclosures in the accompanying Standalone Financial Statements
overall standalone financial statements, and extent of the in accordance with the applicable accounting standards and related RBI
Management’s estimates and judgements involved and circulars and resolution framework.
also the significant auditor attention required to test such
complex accounting estimates, we have identified this as Key
Audit Matters for the current year audit.
Information technology (‘IT’) Systems and controls As part of our Audit, we have carried out testing of the IT general controls,
impacting financial reporting and migration to the new application controls and IT dependent manual controls.
Loan Management system We tested the design and operating effectiveness of the Company’s IT access
The financial accounting and reporting systems of the controls over the key information systems, including changes made to the IT
Company are fundamentally reliant on IT systems and landscape during the audit period, that are critical to financial reporting.
controls to process significant transactions at numerous We tested IT general controls in the nature of controls over logical access,
locations, such as loans, interest income and impairment changes management, and other aspects of IT operational controls.
of financial assets. Any significant gaps in the IT control
environment could result in a material misstatement of the
financial and accounting records.

Consolidated
Financial
Statements

Appropriate IT general controls and application controls are To obtain comfort over the completeness and accuracy of the migration
required to ensure that such IT systems are able to process process, certain additional procedures were also performed which included;
the data, as required, completely, accurately and consistently • Review of the management’s reconciliation of the closing balances as at
for reliable financial reporting. the migration date as per the legacy IT Systems and the corresponding
During the year, the Company has completely migrated to balances as per New LMS on the same date.
the new loan management software(“LMS”) in the month of • Comparison of key parameters between the legacy IT System and the new
November 2022, which required financial and other related LMS on the migration date.
information was required to be migrated from the legacy IT
systems to the new LMS. • Review of report issued by independent third party in respect of migration
audit carried out by them.
In view of the pervasive nature and complexity of the IT
environment, the assessment of the general IT controls Where deficiencies were identified, we tested compensating controls or
and the application controls specific to the accounting and performed alternate procedures.
preparation of the financial information including migration
to the new LMS is considered to be a key audit matter.
(ii) In respect of the subsidiary, Muthoot Homefin (India) Limited

1. Expected Credit Loss (ECL) on Loans and Advances Our Audit Approach:
A s at March 31, 2023, the carrying value of loan assets Our audit approach was a combination of test of internal controls and
measured at amortized cost, aggregated to Rs 10506.92 substantive procedures which included the following:
million (net of allowance of ECL ₹357.81 million). a) Testing the design and effectiveness of internal controls over the
The estimation of ECL on financial instruments involves following:
significant judgement and estimates. As part of our risk • Key controls over the completeness and accuracy to the key inputs,
assessment, we determined that the allowance for ECL on data and assumptions into the IND AS 109 impairment model.
loan assets has a high degree of estimation uncertainty,
with a potential range of reasonable outcomes for • Key controls over the application of the staging criteria consistent
financial statements. with the definitions applied including the appropriateness of the
qualitative factors.
The elements of estimating ECL which involved increased
level of audit focus are the following: • Management’s controls over authorization and calculation of post
model adjustments and management overlays to the output of ECL
a) Data inputs – The application of ECL model requires model.
several data inputs.
b) On sample basis, ECL allowance on loan assets were tested over the
b) Model estimations – Inherently judgemental models following:
are used to estimate ECL which involves determining
Probabilities of Default (“PD”), Loss Given Default • Sample testing over key inputs, data and assumptions impacting
(“LGD”), and Exposures at Default (“EAD”). The ECL calculations to assess the completeness, accuracy and relevance
PD and the LGD are the key drivers of estimation of data, reasonableness of economic forecasts, weights, and model
complexity in ECL and as a result are considered assumptions applied.
the most significant judgemental aspect of the • We evaluated reasonableness of LGD estimates by comparing actual
Company’s modelling approach. recoveries post the loan asset becoming credit impaired with
c) Qualitative and quantitative factors used in staging estimates of LGD; and
the loan assets measured at amortized cost. •
We tested the mathematical accuracy and computation of the
d) Economic scenarios – IND AS 109 requires the allowances by using the same input data used by the Company.
Company to measure ECL on an unbiased forward- c) We also evaluated the adequacy of the adjustment after stressing the
looking basis reflecting a range of future economic inputs used in determining the output as per the ECL Model.
conditions. Significant management judgement is d) Testing management’s controls on compliance with disclosures to confirm
applied determining the economic scenarios used the compliance with the relevant provisions of IND AS 109 and RBI.
and the probability weights applied to them.
e) Evaluating the appropriateness of the Company’s IND AS 109 impairment
methodologies and reasonableness of assumptions used, including
management overlays.
f) For models which were changed or updated during the year, evaluating
whether the changes were appropriate by assessing the updated model
methodology.
g) Read and assessed the disclosures included in the IND AS financial
statements in respect of expected credit losses with the requirements of
IND AS 107 and IND AS 109.

(iii) In respect of foreign subsidiary, Asia Asset Finance PLC
Impairment of loans and receivables Our procedures included the following:
The company’s gross loans and receivables amount to • We obtained an understanding of management’s process and tested
₹21.2 billion as at 31st March 2023 (2022: ₹17.34 billion) and controls over credit origination, credit monitoring and credit remediation.
impairment allowance for the year amounts to ₹556 million • We assessed the appropriateness of the accounting policies and
(2022: ₹493 million). loan impairment methodologies applied by comparing these to the
Due to the significance of loans and receivables and requirements of SLFRS 9: Financial Instruments including consideration
the significant estimates and judgement involved, the of current economic crisis and related industry responses based on the
impairment of these loans and receivables was considered to best available information up to the date of our report.
be a key audit matter. • We test-checked the underlying calculations and data.
The impairment provision is considered separately on an In addition to the above, we performed the following specific procedures:
individual and collective basis.
For loans and receivables collectively assessed for impairment:
In calculating the impairment provision on a collective basis,
statistical models are used. The following inputs to these • We assessed the completeness of the underlying information in loans and
models require significant management judgement: receivables used in the impairment calculations by agreeing details to the
company’s source documents and information in IT systems.
• the probability of default (PD);
• We also considered the reasonableness of macro-economic and other
• the exposure at default (EAD); factors used by management by comparing them with publicly available
• the loss given default (LGD); and data and information sources. This included assessing and challenging
• the effective interest rates. the reasonableness of macroeconomic scenarios considered and certain
forward looking economic data developed by the company, with a
In assessing loans and receivables on an individual basis, particular focus on the impact of current economic crisis in light of certain
significant judgements, estimates and assumptions have available information and consensus views.
been made by management to:
For loans and receivables individually assessed for impairment:
• Determine if the loan or advance is credit impaired;
• We assessed the main criteria used by the management for determining
• Evaluate the adequacy and recoverability of collateral; whether an impairment event had occurred.
• Determine the expected cash flows to be collected; and • Where impairment indicators existed, we assessed the reasonableness of
• Estimate the timing of the future cash flows. management’s estimated future recoveries including the expected future
cash flows, discount rates and the valuation of collateral held.
• Evaluating the reasonableness of the provisions made with particular
focus on the impact of economic crisis on elevated risk industries,
strategic responsive actions taken, collateral values, and the value and
timing of future cashflows.
For loans and advances affected by government stimulus and debt moratorium
relief measures granted:
Assessing the appropriateness of judgements, reasonableness of
•
calculations and data used to determine whether customer contracts
have been substantially modified or not and to determine the resulting
accounting implications; and
• Evaluating the reasonableness of the interest income recognised on such
affected loans and advances.
Information Other than the Consolidated Our opinion on the consolidated financial statements does not
Financial Statements and Auditors’ Report cover the other information and we do not express any form of
thereon assurance conclusion thereon.
The Holding Company’s Board of Directors is responsible
for the other information. The other information comprises In connection with our audit of the consolidated financial
the information included in the Corporate Overview, Board’s statements, our responsibility is to read the other information
Report, Management Discussion and Analysis Report, Business identified above when it becomes available and, in doing
Responsibility Report and Report on Corporate Governance so, consider whether the other information is materially
in the Annual Report of the Holding Company for the financial inconsistent with the consolidated financial statements or
year 2022-23, but does not include the consolidated financial our knowledge obtained during the course of our audit, or
statements, and our Auditors’ Report thereon. The reports otherwise appears to be materially misstated.
containing the other information as above are expected to be
made available to us after the date of this Auditors’ Report.

Consolidated
Financial
Statements
When we read the reports containing the other information, Auditors’ responsibilities for the audit of the
if we conclude that there is a material misstatement therein, Consolidated Financial Statements
we are required to communicate the matter to those charged Our objectives are to obtain reasonable assurance about
with governance and take necessary actions as per applicable whether the consolidated financial statements as a whole
laws and regulations. are free from material misstatement, whether due to fraud
or error, and to issue an auditors’ report that includes our
Responsibilities of Management and Those opinion. Reasonable assurance is a high level of assurance,
Charged with Governance for the consolidated but is not a guarantee that an audit conducted in accordance
financial statements with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and
The Holding Company’s Board of Directors is responsible for
are considered material if, individually or in the aggregate,
the matters stated in section 134(5) of the Act with respect
they could reasonably be expected to influence the economic
to the preparation and presentation of these consolidated
decisions of users taken on the basis of these Consolidated
financial statements that give a true and fair view of the
Financial Statements.
consolidated financial position, consolidated financial
performance including other comprehensive income,
As part of an audit in accordance with SAs, we exercise
consolidated cash flows and consolidated changes in equity
professional judgement and maintain professional skepticism
of the Group in accordance with the accounting principles
throughout the audit. We also:
generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act.
• Identify and assess the risk of material misstatements of
The respective Board of Directors of the companies included
the consolidated financial statements, whether due to fraud
in the Group are responsible for maintenance of adequate
or error, design and perform audit procedures responsive
accounting records in accordance with the provisions of the
to those risks, and obtain audit evidence that is sufficient
Act for safeguarding the assets of the Group and for preventing
and appropriate to provide a basis for our opinion. The
and detecting frauds and other irregularities; selection
risk of not detecting a material misstatement resulting
and application of appropriate accounting policies; making
from fraud is higher than for one resulting from error, as
judgements and estimates that are reasonable and prudent;
fraud may involve collusion, forgery, intentional omissions,
and design, implementation and maintenance of adequate
misrepresentations, or the override of internal control;
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting • Obtain an understanding of internal control relevant
records, relevant to the preparation and presentation of the to the audit in order to design audit procedures that are
consolidated financial statements that give a true and fair appropriate in the circumstances. Under section 143(3)
view and are free from material misstatement, whether due (i) of the Act, we are also responsible for expressing our
to fraud or error, which have been used for the purpose of opinion on whether the Holding Company has an adequate
preparation of the consolidated financial statements by the internal financial controls system in place and the
Directors of the Holding Company as aforesaid. operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used

In preparing the consolidated financial statements, the
and the reasonableness of accounting estimates and
respective Board of Directors of the companies included
related disclosures made by the Management.
in the Group are responsible for assessing the ability of the
respective entities to continue as a going concern, disclosing, • Conclude on the appropriateness of Management’s use of
as applicable, matters related to going concern and using the the going concern basis of accounting and, based on the
going concern basis of accounting unless the respective Board audit evidence obtained, whether a material uncertainty
of Directors either intends to liquidate its respective entities exists related to events or conditions that may cast
or to cease operations, or has no realistic alternative but to significant doubt on the ability of the Group to continue as
do so. a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our Auditors’
The respective Board of Directors of the companies included report to the related disclosures in the consolidated
in the Group are responsible for overseeing the financial financial statements or, if such disclosures are inadequate,
reporting process of the respective companies in the Group. to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our Auditors’
report. However, future events or conditions may cause the
Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content about the matter or when, in extremely rare circumstances,
of the consolidated financial statements including the we determine that a matter should not be communicated in
disclosures, and whether the consolidated financial our report because the adverse consequences of doing so
statements represent the underlying transactions and would reasonably be expected to outweigh the public interest
events in a manner that achieves fair presentation. benefits of such communication.
• Obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business activities Other Matters
within the Group to express an opinion on the consolidated We did not audit the financial statements/financial
financial statements. We are responsible for the direction, information of six subsidiaries (incorporated in India) and
supervision and performance of the audit of the financial one foreign subsidiary, whose financial statements reflect
statements of such entities included in the consolidated total assets of ₹87,744.23 million as at March 31, 2023, total
financial statements of which we are the independent revenue of ₹13,973.85 million and net cash flows of ₹5,216.33
auditors. For the other entities included in the consolidated million for the year ended March 31, 2023, as considered in the
financial statements, which have been audited by other consolidated financial statements. These financial statements
auditors, such other auditors remain responsible for the / financial information have been audited by other auditors
direction, supervision and performance of the audits whose reports have been furnished to us by the Management
carried out by them. We remain solely responsible for our and our opinion on the consolidated financial statements, in
audit opinion. so far as it relates to the amounts and disclosures included in
Materiality is the magnitude of misstatements in the respect of these subsidiaries, and our report in terms of sub-
consolidated financial statements that, individually or in section (3) of Section 143 of the Act, in so far as it relates to the
aggregate, makes it probable that the economic decisions of a aforesaid subsidiaries is based solely on the reports of such
reasonably knowledgeable user of the consolidated financial other auditors.
statements may be influenced. We consider quantitative
materiality and qualitative factors in Our opinion above on the consolidated financial statements,
and our report on ‘Other Legal and Regulatory Requirements’
(i) planning the scope of our audit work and in evaluating below, is not modified in respect of the above matter with
the results of our work; and respect to our reliance on the work done and reports of the
other auditors.
(ii) to evaluate the effect of any identified misstatements in
the consolidated financial statements. Report on Other Legal and Regulatory
Requirements
We communicate with those charged with governance of
1. As per the Companies (Auditor’s Report) order 2020 (‘the
the Holding Company and such other entities included in
Order’), issued by the Central Government of India in
the consolidated financial statements, of which we are the
terms of sub section (11) of section 143 of the Act, we give
independent auditors regarding, among other matters, the
in ‘Annexure A’, a statement on the matters specified in
planned scope and timing of the audit and significant audit
paragraphs 3 and 4 of the Order, to the extent applicable.
findings, including any significant deficiencies in internal
control that we identify during our audit.
2. As required by section 143(3) of the Act, based on our
audit and on the consideration of the reports of the
We also provide those charged with governance with a
other auditors on the separate financial statements of
statement that we have complied with relevant ethical
the subsidiaries referred to in the other matters section
requirements regarding independence, and to communicate
above, we report, to the extent applicable, that:
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
a. We have sought and obtained all the information and
where applicable, related safeguards.
explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit of
From the matters communicated with those charged with
the aforesaid consolidated financial statements;
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
b. In our opinion, proper books of account as required
statements for the current year and are therefore the key
by law relating to the preparation of aforesaid
audit matters. We describe these matters in our Auditors’
consolidated financial statements have been kept by
report unless law or regulation precludes public disclosure
the Group so far as it appears from our examination

Consolidated
Financial
Statements
of those books, returns and the reports of the other year is in accordance with the provisions of section
auditors. Since the key operations of the Holding 197 read with Schedule V to the Act; and
Company are automated with the key applications
integrated to Core Banking System (CBS)/ h. With respect to other matters to be included in
Management Information System (MIS), the audit the Auditors’ report in accordance with Rule 11 of
of the Holding Company is carried out centrally as the Companies (Audit and Auditors) Rules, 2014,
all the necessary records and data required for the as amended, in our opinion and to the best of our
purposes of our audit are available therein. information and according to the explanations
given to us:
c. The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss (including Other i. The Group has disclosed the impact of pending
Comprehensive Income), the Consolidated Cash litigation on its financial position in its
Flow Statement and Consolidated Statements of consolidated financial statements – Refer Note
Changes in Equity dealt with by this Report are 41 to the consolidated financial statements.
in agreement with books of account maintained
for the purpose of preparation of the consolidated ii. The Group has made provisions, as required
financial statements. under the applicable law or accounting
standards, for material foreseeable losses,
d. In our opinion, the aforesaid consolidated financial if any, on long term contracts including
statements comply with the Indian Accounting derivative contracts.
Standards specified under section 133 of the
Act read with Companies (Indian Accounting iii. There has been no delay in transferring
Standards) Rules, 2015, as amended; amounts, required to be transferred, to the
Investor Education and Protection Fund
e. On the basis of the written representations received by the Holding Company and its subsidiary
from the directors of the Holding Company as on companies incorporated in India during the
March 31, 2023 taken on record by the Board of year ended March 31, 2023.
Directors of the Holding Company and the reports of
the statutory auditors of its subsidiary companies iv. With respect to clause (e) of Rule 11 of the
incorporated in India, none of the directors of the Companies (Audit and Auditors) Rules, 2014,
Group companies, is disqualified as on March 31, as amended;
2023 from being appointed as a director in terms of
Section 164 (2) of the Act. a)
The respective Managements of the
Holding Company and its subsidiaries
f. With respect to the adequacy of the internal which are companies incorporated
financial controls with reference to financial in India whose financial statements
statements of the Group and the operating have been audited under the Act have
effectiveness of such controls, refer to our separate represented to us and the other auditors of
report ‘Annexure B’ to this report which is based such subsidiaries respectively that, to the
on the auditors’ reports of the Holding Company best of their knowledge and belief, other
and subsidiary companies incorporated in India. than as disclosed in the consolidated
Our report expresses an unmodified opinion on the financial statements, no funds (which
adequacy and operating effectiveness of internal are material either individually or in the
financial controls with reference to financial aggregate) have been advanced or loaned
statements of those companies. or invested (either from borrowed funds
or share premium or any other sources or
g. With respect to the other matters to be included kind of funds) by the Holding Company
in the Auditors’ report in accordance with section or any of its subsidiaries to or in any
197(16) of the Act, in our opinion and to the best of other person(s) or entity(ies), including
our information and according to the explanations foreign entities (“Intermediaries”), with
given to us, the remuneration paid/provided by the understanding, whether recorded
the Holding Company and Subsidiary Companies in writing or otherwise, that the
incorporated in India to its directors during the Intermediary shall, whether, directly or

indirectly lend or invest in other persons guarantee, security or the like on behalf
or entities identified in any manner of the Ultimate Beneficiaries; and
whatsoever by or on behalf of the Holding
Company or any of its subsidiaries c)
Based on the audit procedures that
(“Ultimate Beneficiaries”) or provide any have been considered reasonable and
guarantee, security or the like on behalf appropriate in the circumstances
of the Ultimate Beneficiaries; performed by us and those performed
by the auditors of the subsidiaries
b)
The respective Managements of the incorporated in India whose financial
Holding Company and its subsidiaries statements have been audited under
which are companies incorporated the Act, nothing has come to our or
in India whose financial statements other auditors’ notice that has caused
have been audited under the Act have us or the other auditors to believe that
represented to us and the other auditors the representations under sub-clause
of such subsidiaries respectively that, (i) and (ii) of Rule 11(e), as provided
to the best of their knowledge and under (a) and (b) above, contain any
belief, other than as disclosed in the material misstatement.
consolidated financial statements,
no funds (which are material either v. The dividend declared/paid during the year by
individually or in the aggregate) have the Group is in compliance with section 123 of
been received by the Holding Company the Act.
or any of its subsidiaries from any
person(s) or entity(ies), including foreign vi. Proviso to Rule 3(1) of the Companies
entities (“Funding Parties”), with the (Accounts) Rules, 2014 requires maintaining
understanding, whether recorded in books of account using accounting software
writing or otherwise, that the Holding which has a feature of recording audit
Company or any of its subsidiaries shall, trail (edit log) facility is applicable to the
whether, directly or indirectly, lend Group with effect from April 1, 2023, and
or invest in other persons or entities accordingly, reporting under Rule 11(g) of
identified in any manner whatsoever Companies (Audit and Auditors) Rules, 2014
by or on behalf of the Funding Party is not applicable for the financial year ended
(“Ultimate Beneficiaries”) or provide any March 31, 2023.

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Partner Partner
UDIN: 23205377BGQGGU8210 UDIN: 23026973BGUHZF3914
May 19, 2023 May 19, 2023

Kochi Kochi

Consolidated
Financial
Statements
‘ANNEXURE A’ REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING “REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS” OF OUR INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
In terms of the information and explanations sought by us and given by the Holding Company and the books of account
and records examined by us in the normal course of the audit and to the best of our knowledge and belief and based on the
consideration of the report of respective auditors of the subsidiary companies, incorporated in India, we state that:
xxi. There are no qualifications or adverse remarks by the respective auditors in their report on Companies (Auditors Report)
Order, 2020 of the companies included in the consolidated financial statements.

Sd/- Sd/-
Partner Partner
May 19, 2023 May 19, 2023

Kochi Kochi

‘ANNEXURE B’ REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING “REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS” OF OUR INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
Report on the Internal Financial Controls for ensuring the orderly and efficient conduct of its business,
with reference to financial statements under including adherence to the respective company’s policies,
Clause (i) of Sub-section 3 of Section 143 of the the safeguarding of its assets, the prevention and detection
Companies Act, 2013 of frauds and errors, the accuracy and completeness of the
In conjunction with our audit of the consolidated financial accounting records, and the timely preparation of reliable
statements of the Company as of and for the year ended March financial information, as required under the Companies Act,
31, 2023, we have audited the internal financial controls with 2013 (‘the Act’).
reference to the financial statements of Muthoot Finance
Limited (hereinafter referred to as “the Holding Company”) Auditors’ Responsibility
and its subsidiary companies incorporated in India, as of
Our responsibility is to express an opinion on the Holding
that date.
Company’s internal financial controls with reference to
consolidated financial statements based on our audit. We
Opinion conducted our audit in accordance with the Guidance Note
In our opinion, to the best of our information and according to and the Standards on Auditing, issued by the Institute of
the explanations given to us and based on the consideration Chartered Accountants of India and deemed to be prescribed
of the reports of the other auditors referred to in the other under section 143(10) of the Act, to the extent applicable
matters paragraph below, the Holding Company and its to an audit of internal financial controls. Those Standards
subsidiary companies incorporated in India, have, in all and the Guidance Note require that we comply with ethical
material respects, an adequate internal financial controls requirements and plan and perform the audit to obtain
system with reference to consolidated financial statements reasonable assurance about whether adequate internal
and such internal financial controls with reference to financial financial controls with reference to consolidated financial
statements were operating effectively as at March 31, 2023, statements were established and maintained and if such
based on the criteria for internal financial controls with controls operated effectively in all material respects.
reference to consolidated financial statements established
by the respective companies considering the essential Our audit involves performing procedures to obtain audit
components of internal control stated in the Guidance Note on evidence about the adequacy of the internal financial controls
‘Audit of Internal Financial Controls Over Financial Reporting’ system with reference to consolidated financial statements
issued by the Institute of Chartered Accountants of India (the and their operating effectiveness. Our audit of internal
‘Guidance Note’). financial controls with reference to consolidated financial
statements included obtaining an understanding of internal
financial controls with reference to consolidated financial
Management’s Responsibility for Internal statements, assessing the risk that a material weakness
Financial Controls exists, and testing and evaluating the design and operating
The respective Board of Directors of the Holding Company and effectiveness of internal control based on the assessed risk.
its subsidiary companies incorporated in India, are responsible The procedures selected depend on the auditors’ judgement,
for establishing and maintaining internal financial controls including the assessment of the risks of material misstatement
based on the internal control with reference to consolidated of the consolidated financial statements, whether due to fraud
financial statements criteria established by the Holding or error.
Company and its subsidiary companies incorporated in India
considering the essential components of internal control We believe that the audit evidence we have obtained and
stated in the Guidance Note. These responsibilities include the audit evidence obtained by the other auditors of the
the design, implementation and maintenance of adequate subsidiary companies incorporated in India in terms of their
internal financial controls that were operating effectively reports are sufficient and appropriate to provide a basis for

Consolidated
Financial
Statements
our audit opinion on the internal financial controls system 2. provide reasonable assurance that transactions
with reference to consolidated financial statements. are recorded as necessary to permit preparation of
financial statements in accordance with generally
accepted accounting principles, and that receipts and
Other Matter
expenditures of the company are being made only in
Our aforesaid report under Section 143(3)(i) of the Act on the accordance with authorisations of management and
adequacy and operating effectiveness of the internal financial directors of the company; and
controls with reference to consolidated financial statements
in so far as it relates to six subsidiary companies incorporated 3. provide reasonable assurance regarding prevention or
in India is based on the corresponding reports of the auditors timely detection of unauthorised acquisition, use, or
of such companies. disposition of the company’s assets that could have a
material effect on the financial statements.
Our opinion is not modified in respect of the above matter.
Inherent Limitations of Internal Financial

Meaning of Internal Financial Controls over Controls with Reference to Financial Statements
Financial Reporting Reporting
A company’s internal financial control with reference to Because of the inherent limitations of internal financial
consolidated financial statements is a process designed controls with reference to consolidated financial statements,
to provide reasonable assurance regarding the reliability including the possibility of collusion or improper management
of financial reporting and the preparation of consolidated override of controls, material misstatements due to error
financial statements for external purposes in accordance with or fraud may occur and not be detected. Also, projections
generally accepted accounting principles. A company’s internal of any evaluation of the internal financial controls with
financial control with reference to consolidated financial reference to consolidated financial statements to future
statements includes those policies and procedures that: periods are subject to the risk that the internal financial
control with reference to consolidated financial statements
1. pertain to the maintenance of records that, in reasonable may become inadequate because of changes in conditions, or
detail, accurately and fairly reflect the transactions and that the degree of compliance with the policies or procedures
dispositions of the assets of the company; may deteriorate.

Sd/- Sd/-
Partner Partner
May 19, 2023 May 19, 2023

Kochi Kochi

Consolidated Balance Sheet
as at March 31, 2023

As at As at
Particulars Notes
March 31, 2023 March 31, 2022
I. ASSETS
1 Financial assets
a) Cash and cash equivalents 5 77,701.83 100,358.14
b) Bank Balance other than (a) above 5 2,654.76 2,791.47
c) Derivative financial instruments 6 - 605.01
d) Receivables 7
(I) Trade Receivables 98.95 70.09
(II) Other Receivables - -
e) Loans 8 705,543.84 645,276.41
f) Investments 9 5,457.12 5,233.06
g) Other Financial assets 10 3,453.00 2,807.28
2 Non-financial Assets
a) Current tax assets (Net) 474.57 110.21
b) Deferred tax Assets (Net) 35 640.98 1,089.74
c) Investment Property 11 82.02 93.41
d) Property, Plant and Equipment 12 3,272.37 2,816.92
e) Right to use Assets 13 142.23 147.80
f) Capital work-in-progress 12 674.27 523.44
g) Goodwill 299.96 299.96
h) Other Intangible assets 14 58.85 58.74
i) Intangible assets under development 14 0.44 0.49
j) Other non-financial assets 15 934.01 882.57
Total Assets 801,489.20 763,164.74
II. LIABILITIES AND EQUITY
LIABILITIES
1 Financial Liabilities
a) Derivative financial instruments 6 1,921.73 4,797.97
b) Payables 16
(I) Trade Payables
(i) total outstanding dues of micro enterprises and small enterprises 7.20 -
(ii) total outstanding dues of creditors other than micro enterprises and small 1,334.01 1,204.46
enterprises
(II) Other Payables
(ii) total outstanding dues of creditors other than micro enterprises and small 817.29 367.92
enterprises
c) Debt Securities 17 146,045.79 131,740.35
d) Borrowings (other than Debt Securities) 18 405,974.58 408,553.24
e) Deposits 19 3,314.76 2,235.26
f) Subordinated Liabilities 20 2,546.55 2,997.33
g) Lease Liabilities 155.57 159.80
h) Other financial liabilities 21 12,576.39 13,323.48
2 Non-financial Liabilities
a) Current tax liabilities (Net) 811.92 1,418.15
b) Provisions 22 3,618.92 3,679.83
c) Deferred tax liabilities (Net) 35 152.86 166.36
d) Other non-financial liabilities 23 683.59 1,141.63
EQUITY
a) Equity share capital 24 4,014.48 4,013.45
b) Other equity 25 212,643.04 183,843.79
Equity attributable to the owners of the parent 216,657.52 187,857.24
c) Non-controlling interest 4,870.52 3,521.72
Total Liabilities and Equity 801,489.20 763,164.74
Notes on accounts form part of consolidated financial statements

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Date: May 19, 2023 Date: May 19, 2023

Consolidated
Financial
Statements
Consolidated Statement of Profit and Loss

for the period ended March 31, 2023

Particulars Notes
March 31, 2023 March 31, 2022
Revenue from operations
(i) Interest income 26 115,555.35 119,251.52
(ii) Dividend income 9.41 0.09
(iii) Net gain on fair value changes 27 524.14 495.74
(iv) Net gain on derecognition of financial instruments under amortised cost category 1,403.12 847.74
(v) Sale of services 28 113.26 139.69
(vi) Service charges 1,371.35 1,121.31
(I) Total Revenue from operations 118,976.63 121,856.09
(II) Other Income 29 773.42 525.54
(III) Total Income (I + II) 119,750.05 122,381.63
Expenses
(i) Finance costs 30 42,091.78 42,558.52
(ii) Impairment on financial instruments 31 2,420.07 3,842.21
(iii) Net Loss on derecognition of financial instruments - 35.19
(iv) Employee benefits expenses 32 14,882.68 12,368.09
(v) Depreciation, amortization and impairment 33 781.61 700.03
(vi) Other expenses 34 10,346.11 8,775.71
(IV) Total Expenses (IV) 70,522.25 68,279.75
(V) Profit before tax (III- IV) 49,227.80 54,101.88
(VI) Tax Expense: 35
(1) Current tax 12,341.19 14,110.96
(2) Deferred tax 294.47 (315.12)
(3) Taxes relating to prior years (105.52) (7.20)
(VII) Profit for the year (V- VI) 36,697.66 40,313.24
(VIII) Other Comprehensive Income
A) (i) Items that will not be reclassified to profit or loss
- Fair value changes on equity instruments through other comprehensive income (84.82) 61.51
(ii) Income tax relating to items that will not be reclassified to profit or loss (89.89) 146.80
Subtotal (A) 262.87 (438.01)
B) (i) Items that will be reclassified to profit or loss
- Gain/ (loss) from translating financial statements of foreign operations (17.54) (304.89)
- Fair value gain/ (loss) on debt instruments through other comprehensive income - (17.89)
- Effective portion of gain/ (loss) on hedging instruments in cash flow hedges 245.00 (40.34)
(ii) Income tax relating to items that will be reclassified to profit or loss (61.66) 16.33
Subtotal (B) 165.80 (346.79)
Other comprehensive income (A + B) (VIII) 428.67 (784.80)
(IX) Total comprehensive income for the year (VII+VIII) 37,126.33 39,528.44
Profit for the year attributable to
Owners of the parent 36,122.98 40,166.21
Non-controlling interest 574.68 147.03
Other comprehensive income attributable to
Owners of the parent 439.54 (698.15)
Non-controlling interest (10.87) (86.63)
Total comprehensive income for the year attributable to
Owners of the parent 36,562.52 39,468.05
Non-controlling interest 563.81 60.39
(X) Earnings per equity share 36
(Face value of ₹10/- each)
Basic (₹) 89.99 100.10
Diluted (₹) 89.98 100.05

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Date: May 19, 2023 Date: May 19, 2023

306
for the year ended March 31, 2023 (I in millions, except for share data and unless otherwise stated)
a. Equity Share Capital
Particulars Number Amount

Equity shares of ₹10/- each issued, subscribed and fully paid
As at April 01, 2021 401,195,856 4,011.96

As at March 31, 2022 401,345,266 4,013.45
As at March 31, 2023 401,448,231 4,014.48

b. Other Equity
Reserves and Surplus Other comprehensive income
Other Items
Income Total at-
Debenture Debts in- Equity of Other Total
Foreign Tax tributable
redemp- Share Capital struments instruments Cash Comprehen- non-con-
Particulars Secu- currency Cost of relating to equity Total
Statutory tion General Option Redemp- Capital Retained through through flow sive Income trolling
rities trans- Hedging to items holders of
reserve reserve Reserve Out- tion reserve Earnings other com- other com- hedging (Remeasure- interest
premium lation Reserve to be the parent
(Refer Note standing Reserve prehensive prehensive reserve ment of de-
reserve reclassi-
25.1(c)) income income fined benefit
fied
plans)
Balance as at April 01, 34,315.09 15,016.44 35,123.98 2,676.33 105.00 500.00 0.66 63,973.67 (79.25) 7.59 383.48 (173.95) (156.74) - 45.96 151,738.29 1,845.75 153,584.04
2021
Profit for the period - - - - - - - 40,166.20 - - - - - - - 40,166.20 147.03 40,313.23
Other comprehensive - - - - - - - - (222.32) (8.20) 46.03 (30.19) (501.53) - 18.04 (698.16) (86.63) (784.80)
income for the year (Net
of tax)
Remeasurement of the - - - - - - - - - - - - - - - - - -
net defined benefit
liability / asset, net
Adjustments to non - - - - - - - - - - - - - - - - 1,615.57 1,615.57
controlling interest
Dividend - - - - - - - (8,023.92) - - - - - - - (8,023.92) - (8,023.92)
Net gain / (loss) on - - - - - - - 657.40 - - - - - - - 657.40 - 657.40
transaction with Non-
Tax on dividend - - - - - - - - - - - - - - - - - -
Transfer to/from retained 8,062.65 - - - - - - (8,062.65) - - - - - - - - - -
earnings
Other Additions/ - - - - - - - - - - - - - - - - -
Deductions during the
year
Share based payment - - - - (1.98) - - - - - - - - - - (1.98) - (1.98)
expenses
Share options exercised - - - - (41.28) - - - - - - - - - - (41.28) - (41.28)
during the year
Share premium received - 47.26 - - - - - - - - - - - - - 47.26 - 47.26
Balance as at March 42,377.74 15,063.70 35,123.98 2,676.33 61.74 500.00 0.66 88,710.70 (301.57) (0.61) 429.51 (204.14) (658.27) - 64.00 183,843.79 3,521.72 187,365.51
during the year
31, 2022
Financial
Reserves and Surplus Other comprehensive income

Statements

Consolidated
Other Items
Income Total at-
Debenture Debts in- Equity of Other Total
Foreign Tax tributable
redemp- Share Capital struments instruments Cash Comprehen- non-con-
Particulars Secu- currency Cost of relating to equity Total
Statutory tion General Option Redemp- Capital Retained through through flow sive Income trolling
rities trans- Hedging to items holders of
reserve reserve Reserve Out- tion reserve Earnings other com- other com- hedging (Remeasure- interest
premium lation Reserve to be the parent
(Refer Note standing Reserve prehensive prehensive reserve ment of de-
reserve reclassi-
25.1(c)) income income fined benefit
fied
plans)
Profit for the period - - - - - - - 36,122.98 - - - - - - - 36,122.98 574.68 36,697.66
Other comprehensive - - - - - - - - (12.79) 0.04 (63.48) 183.38 298.26 - 34.13 439.54 (10.87) 428.67
income for the year (Net
of tax)
Adjustments to non - - - - - - - - - - - - - - - - 784.99 784.99
Dividend - - - - - - - (8,026.91) - - - - - - - (8,026.91) - (8,026.91)
Tax on dividend - - - - - - - - - - - - - - - - - -
Net gain / (loss) on - - - - - - - 259.51 - - - - - - - 259.51 - 259.51
transaction with Non-
Transfer to/from retained 7,122.21 - - - - - - (7,122.21) - - - - - - - - - -
earnings
Other Additions/ - - - - - - - - - - - - - - - - - -
Deductions during the
year
Share based payment - - - - - - - - - - - - - - - - - -
expenses
Share option exercised - - - - (32.46) - - - - - - - - - - (32.46) - (32.46)
during the year
Transfer from ESOP - - - - (9.16) - - 9.16 - - - - - - - 0.00 - 0.00
reserves
Share premium received - 36.59 - - - - - - - - - - - - - 36.59 - 36.59
Balance as at March 49,499.95 15,100.29 35,123.98 2,676.33 20.12 500.00 0.66 109,953.23 (314.36) (0.57) 366.03 (20.76) (360.01) - 98.13 212,643.04 4,870.52 217,513.56
during the year
31, 2023

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307
Date: May 19, 2023 Date: May 19, 2023
Cash Flow Statement

Particulars
March 31, 2023 March 31, 2022
A. Cash flow from Operating activities
Profit before tax 49,227.80 54,101.87
Adjustments to reconcile profit before tax to net cash flows:
Depreciation, amortisation and impairment 781.61 700.03
Impairment on financial instruments 2,420.07 3,835.21
Finance cost 42,091.78 42,558.52
(Profit)/Loss on sale of Property, plant and equipment (2.39) (7.90)
Provision for Compensated absences 31.16 (32.34)
Provision for Employee benefit expense - Share based payments for employees - (1.98)
Provision for refund of interest on interest - 4.55
Interest income on investments (2,665.79) (1,799.91)
Dividend income (9.41) (0.09)
(Profit)/Loss on sale of mutual funds (716.50) (492.84)
Unrealised (Gain)/loss on investment 192.36 4.10
Operating Profit Before Working Capital Changes 91,496.40 99,041.96
Adjustments for:
(Increase)/Decrease in Trade receivables (28.86) 27.93
(Increase)/Decrease in Bank balances other than cash and cash equivalents 136.22 (356.63)
(Increase)/Decrease in Loans (59,869.49) (61,195.18)
(Increase)/Decrease in Other financial assets (723.30) 775.58
(Increase)/Decrease in Other non-financial assets 28.64 91.13
Increase/(Decrease) in Other financial liabilities 1,542.38 113.95
Increase/(Decrease) in Other non-financial liabilities (457.46) 628.82
Increase/(Decrease) in Trade payables 586.14 (541.46)
Increase/(Decrease) in Provisions (3,011.40) (821.47)
Cash generated from/ (used in) operations 29,699.27 37,764.63
Finance cost paid (44,521.97) (39,706.33)
Income tax paid (13,217.97) (14,022.79)
Net cash from / (used in) operating activities (28,040.67) (15,964.49)
B. Cash flow from Investing activities
Purchase of Property, plant and equipment and intangible assets (1,411.43) (970.59)
Proceeds from sale of Property, plant and equipment 13.99 24.11
(Increase)/Decrease in Investment Property 8.74 4.40
(Increase)/Decrease in Investment in mutual funds (Net) 1,624.40 (8.90)
(Increase)/Decrease in Investments at amortised cost (1,160.39) 3,410.95
Interest received on investments 2,724.95 1,756.33
Dividend income 9.41 0.09
Net cash from / (used in) investing activities 1,809.67 4,216.39

Consolidated
Financial
Statements
Cash Flow Statement


Particulars
March 31, 2023 March 31, 2022
C. Cash flow from Financing activities
Proceeds from issue of equity share capital 5.15 7.47
Proceeds from issue of subsidiary shares to Non-controlling interest 1,050.00 2,276.29
Increase / (Decrease) in Debt securities 14,225.96 (14,991.44)
Increase / (Decrease) in Borrowings (other than Debt securities) (3,896.22) 55,565.48
Increase / (Decrease) in Deposits 1,143.57 432.27
Increase / (Decrease) in Subordinated liabilities (459.47) (732.83)
Payment of lease liabilities and interest on lease liabilities (86.74) (75.05)
Dividend paid (8,032.06) (8,027.30)
Net cash from / (used in) financing activities 3,950.19 34,454.89
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) (22,280.81) 22,706.79
Net foreign exchange difference (10.30) (111.38)
Cash and cash equivalents at April 01, 2022/ April 01, 2021 100,602.47 78,007.06
Cash and cash equivalents at March 31, 2023/ March 31, 2022 78,311.36 100,602.47
Notes:
a) The above Cash flow statement has been prepared under the “ Indirect Method” as set out in the Indian Accounting
Standard (Ind AS-7)- Statement of Cash Flows.
b) Components of Cash and cash equivalents as per Consolidated Cash flow statement:

Particulars
March 31 2023 March 31 2022
Cash and cash equivalents as per Consolidated Balance sheet 77,701.83 100,358.14
Add: Investment in reverse re-purchase against treasury bills and bonds (maturity less than 3 610.47 254.35
months)
78,312.30 100,612.49
Less: Bank Overdraft 0.94 10.02
Cash and cash equivalents as per Consolidated Cash flow Statement 78,311.36 100,602.47
Notes on accounts forms part of consolidated financial statements

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Date: May 19, 2023 Date: May 19, 2023

Notes
1. Corporate Information
Muthoot Finance Limited (“the Company”) was incorporated as a private limited Company on 14th March, 1997 and was
converted into a public limited company on November 18, 2008. The Company was promoted by Late Mr. M. G. George
Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and Mr. George Alexander Muthoot who collectively
operated under the brand name of “The Muthoot Group”. The Company obtained permission from the Reserve Bank of
India for carrying on the business of Non-Banking Financial Institutions on 13-11-2001 vide Regn. No. N 16.00167. The
Company is presently classified as Systemically Important Non-Deposit Taking NBFC (NBFC-ND-SI). The Reserve Bank
of India vide its press release 2022-2023/975 dated September 30, 2022, has classified Muthoot Finance Limited
as Upper Layer NBFC as per their “Scale based regulatory framework”. The Registered Office of the Company is at 2nd
Floor, Muthoot Chambers, Opposite Saritha Theatre Complex, Banerji Road, Kochi - 682 018, India.
The Company made an Initial Public Offer of 51,500,000 Equity Shares of the face value ₹10/- each at a price of ₹175/-
raising ₹9,012.50 million during the month of April 2011. The equity shares of the Company are listed on National Stock
Exchange of India Limited and BSE Limited from May 6, 2011.
Basis of Consolidation
The Consolidated financial statements relate to Muthoot Finance Limited and its subsidiaries which constitute the ‘Group’
hereinafter. Following subsidiary companies have been considered in the preparation of the consolidated financial
statements: -
Name of the Company Abbreviation % of holding as at % of holding as at
Relationship with the company
(Country of Incorporation) used March 31, 2023 March 31, 2022
Asia Asset Finance PLC (Sri Lanka) AAF Subsidiary Company 72.92 72.92
Muthoot Homefin (India) Limited (India) MHIL Wholly owned subsidiary Company 100.00 100.00
Belstar Microfinance Limited (India) BML Subsidiary Company 56.97 60.69
Muthoot Insurance Brokers Private MIBPL Wholly owned subsidiary Company 100.00 100.00
Limited (India)
Muthoot Money Limited (India) MML Wholly owned subsidiary Company 100.00 100.00
Muthoot Asset Management Private MAMPL Wholly owned subsidiary Company 100.00 100.00
Limited (India)
Muthoot Trustee Private Limited (India) MTPL Wholly owned subsidiary Company 100.00 100.00
As stated in Note 9.2 of the consolidated financial statements, the Company held 2,163,000 equity shares of Nepalese
Rupee 100/- each in United Finance Limited as at March 31, 2021. Since the management did not have significant influence
over the entity as specified in Ind AS-28 - Investments in Associates and Joint Ventures; had elected to recognise and
measure the investment at fair value through OCI as per the requirements of Ind AS 109 – Financial Instruments. On July
11, 2021, United Finance Limited was acquired by Nabil Bank Limited, Nepal in share swap 1 : 0.35 and accordingly the
Company holds 11,98,531 equity shares of Nepalese Rupee 100/-(i.e. 0.442965% shareholding) each as at March 31, 2023.
2. Basis of preparation and presentation time to time).These financial statements may require
further adjustments, if any, necessitated by the guidelines
2.1. Statement of Compliance / clarifications / directions issued in the future by RBI,
These consolidated financial statements have been Ministry of Corporate Affairs, or other regulators, which
prepared in accordance with Indian Accounting will be implemented as and when the same are issued
Standards (Ind AS) notified under Section 133 of the and made applicable.
Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, 2015, (as amended from

Consolidated
Financial
Statements
Notes
2.2. Principles of Consolidation its power over the entity. The financial statements of
2.2.1. Business Combination: subsidiaries are included in the consolidated financial
statements from the date on which control commences
The Group applies Ind AS 103, Business Combinations, to
until the date on which control ceases.
business combinations. In accordance with Ind AS 103,
the Group accounts for these business combinations using
the acquisition method when control is transferred to the 2.2.3. Non-controlling interests (NCI)
Group. The consideration transferred for the business NCI are measured at their proportionate share of
combination is generally measured at fair value as at the the acquiree’s net identifiable assets at the date of
date the control is acquired (acquisition date), as are the acquisition. Changes in the Group’s equity interest in
net identifiable assets acquired. Any goodwill that arises a subsidiary that do not result in a loss of control are
is tested annually for impairment. Any gain on bargain accounted for as equity transactions.
purchase is recognised in Other Comprehensive Income
(OCI) and accumulated in equity as capital reserve if
there exist clear evidence of the underlying reason for 2.2.4. Loss of control
classifying the business combination as resulting in When the Group loses control over a subsidiary, it
bargain purchase; otherwise the gain is recognised derecognises the assets and liabilities of the subsidiary,
directly in equity as capital reserve. Transaction cost and any related NCI and other component of equity. Any
are expensed as incurred, except to the extent related to interest retained in the former subsidiary is measured
debt or equity securities. at fair value at the date the control is lost. Any resulting
gain or loss is recognised in the Statement of Profit
The consideration transferred does not include amounts and Loss.
related to the settlement of pre-existing relationships
with the acquiree. Such amounts are generally
2.2.5. Transactions eliminated on consolidation
recognised in the statement of profit and loss.

Intra group balances and transactions, and any

Any contingent consideration is measured at fair unrealised income and expenses arising from intra
value at the date of acquisition. If an obligation to pay group transactions are eliminated.
contingent consideration that meets the definition of a
financial instrument is classified as equity, then it is not 2.2.6. Foreign operations
remeasured subsequently and settlement is accounted

The assets and liabilities of foreign operations,
for within equity. Other contingent consideration is
including goodwill and fair value adjustments arising on
remeasured at fair value at each reporting date and
acquisition, are translated into at the exchange rates at
changes in the fair value of the contingent consideration
the reporting date. The income and expenses of foreign
are recognised in the statement of profit and loss.
operations are translated into at the exchange rates at
the dates of the transactions.
If business combination is achieved in stages, any
previously held equity interest of the acquirer in the
The Group recognises foreign currency translation
acquiree is remeasured to its acquisition date fair
differences in OCI and accumulated in equity (as
value and any resulting gain or loss is recognised in the
exchange difference on translating the financial
Statement of Profit and Loss or OCI, as appropriate.
statements of foreign operations), except to the extent
that the exchange differences are allocated to NCI.
2.2.2. Subsidiaries
Subsidiaries are entities controlled by the Group. The When a foreign operation is disposed off in its entirety or
Group controls an entity when it is exposed to, or has partially such that control or significant influence is lost,
right to, variable returns from its involvement with the the cumulative amount in the translation reserve related
entity and has the ability to affect those returns through to that foreign operation is reclassified to the Statement
of Profit and Loss as part of the gain or loss on disposal. If

Notes
the Group disposes off part of its interest in a subsidiary 2.6. New Accounting Standards that are issued but
but retains control, then the relevant proportion of the not effective
cumulative amount is reattributed to NCI. There are no standards that are issued but not yet
effective on March 31, 2023.
2.2.7. T he financial statement of the subsidiary companies
used in the consolidation are drawn up to the same
reporting date as that of the Company i.e., year ended 3. Significant accounting policies
March 31, 2023.
3.1. Revenue Recognition
2.2.8. Consolidated financial statements are prepared using 3.1.1. Recognition of interest income
uniform accounting policies except as stated in Notes
The Group recognises Interest income by applying
3.9 and 3.10 of Consolidated Financial Statements.
the effective interest rate (EIR) to the gross carrying
The adjustments arising out of the same are not
amount of a financial asset except for purchased or
considered material.
originated credit-impaired financial assets and other
credit-impaired financial assets.
2.3. Basis of measurement
The consolidated financial statements have been For purchased or originated credit-impaired financial
prepared on a historical cost basis, except for following assets, the Group applies the credit-adjusted effective
assets and liabilities which have been measured at interest rate to the amortised cost of the financial asset
fair value: from initial recognition.
fair value through other comprehensive income

i) For other credit-impaired financial assets, the Group
(FVOCI) instruments, applies effective interest rate to the amortised cost of
the financial asset in subsequent reporting periods.
ii) derivative financial instruments,
iii) other financial assets held for trading The effective interest rate on a financial asset is the
iv) financial assets and liabilities designated at fair rate that exactly discounts estimated future cash
value through profit or loss (FVTPL) receipts through the expected life of the financial asset
to the gross carrying amount of a financial asset. While
2.4. The financial statements of the Group are presented estimating future cash receipts, factors like expected
as per Schedule III (Division III) of the Companies Act, behaviour and life cycle of the financial asset, probable
2013 applicable to NBFCs, as notified by the Ministry of fluctuation in collateral value etc are considered which
Corporate Affairs (MCA). Financial assets and financial has an impact on the EIR.
liabilities are generally reported on a gross basis except
when, there is an unconditional legally enforceable While calculating the effective interest rate, the Group
right to offset the recognised amounts without being includes all fees and points paid or received to and from
contingent on a future event and the parties intend to the borrowers that are an integral part of the effective
settle on a net basis. interest rate, transaction costs, and all other premiums
or discounts.
2.5. Functional and presentation currency

Interest income on all trading assets and financial
The consolidated financial statements are presented in assets required to be measured at FVTPL is recognised
Indian Rupees (₹) which is also its functional currency using the contractual interest rate as net gain on fair
and all values are rounded to the nearest million, except value changes.
when otherwise indicated.

Consolidated
Financial
Statements
Notes
3.1.2. Recognition of revenue from sale of goods or services right to receive the payment is established. This is
Revenue (other than for Financial Instruments within established when it is probable that the economic benefits
the scope of Ind AS 109) is measured at an amount that associated with the dividend will flow to the entity and
reflects the considerations, to which an entity expects the amount of the dividend can be measured reliably.
to be entitled in exchange for transferring goods or
services to customer, excluding amounts collected on 3.2. Financial instruments
behalf of third parties.
A. Financial Assets
The Group recognises revenue from contracts with
customers based on a five-step model as set out in Ind 3.2.1. Initial recognition and measurement
AS 115: All financial assets are recognised initially at fair
value when the Group become party to the contractual
Step 1: Identify contract(s) with a customer: A contract provisions of the financial asset. In case of financial
is defined as an agreement between two or more parties assets which are not recorded at fair value through profit
that creates enforceable rights and obligations and sets or loss, transaction costs that are directly attributable
out the criteria for every contract that must be met. to the acquisition or issue of the financial assets, are
adjusted to the fair value on initial recognition.
Step 2: Identify performance obligations in the contract:
A performance obligation is a promise in a contract with
3.2.2. Subsequent measurement
a customer to transfer a good or service to the customer.
The Companies in the Group classify its financial assets
Step 3: Determine the transaction price: The transaction into various measurement categories. The classification
price is the amount of consideration to which the depends on the contractual terms of the financial assets’
respective company expects to be entitled in exchange cash flows and the respective company’s business model
for transferring promised goods or services to a for managing financial assets.
customer, excluding amounts collected on behalf of
third parties. a. Financial assets measured at amortised cost
A financial asset is measured at Amortised Cost if it
Step 4: Allocate the transaction price to the performance
is held within a business model whose objective is
obligations in the contract: For a contract that has
to hold the asset in order to collect contractual cash
more than one performance obligation, the respective
flows and the contractual terms of the Financial
company allocates the transaction price to each
Asset give rise on specified dates to cash flows that
performance obligation in an amount that depicts
are solely payments of principal and interest on the
the amount of consideration to which the company
principal amount outstanding.
expects to be entitled in exchange for satisfying each
performance obligation.
b. Financial assets measured at fair value through
Step 5: Recognise revenue when (or as) the respective other comprehensive income (FVOCI)
company satisfies a performance obligation. A financial asset is measured at FVOCI if it is
held within a business model whose objective is
Revenue from contract with customer for rendering achieved by both collecting contractual cash flows
services is recognised at a point in time when the and selling financial assets and contractual terms
performance obligation is satisfied. of financial asset give rise on specified dates to
cash flows that are solely payments of principal and
3.1.3. Recognition of Dividend Income interest on the principal amount outstanding.
Dividend income (including from FVOCI investments) is

recognised by the Group when the respective Company’s

Notes
c. Financial assets measured at fair value through retained in the transfer of such financial assets by the
profit or loss (FVTPL) Group is recognized as a separate asset or liability.
A financial asset which is not classified in any of the
above categories are measured at FVTPL. An entity has transferred the financial asset if, and only
if, either:
3.2.3. Other Equity Investments a) it has transferred its contractual rights to receive
All other equity investments are measured at fair value, cash flows from the financial asset or
with value changes recognised in Statement of Profit and
Loss, except for those equity investments for which the b) It retains the rights to the cash flows, but has
Group has elected to present the changes in fair value assumed an obligation to pay the received cash
through other comprehensive income (FVOCI) flows in full without material delay to a third party
under a ‘pass-through’ arrangement
B. Financial liabilities
Pass-through arrangements are transactions whereby
3.2.4. Initial recognition and measurement the respective Company retains the contractual rights to
receive the cash flows of a financial asset (the ‘original
All financial liabilities are recognized initially at
asset’), but assumes a contractual obligation to pay
fair value when the company become party to the
those cash flows to one or more entities (the ‘eventual
contractual provisions of the financial liability. In case
recipients’), on satisfying specific conditions.
of financial liability which are not recorded at fair
value through profit or loss, transaction cost that are
directly attributable to the acquisition or issue of the 3.3.2. Financial Liability
financial liability are adjusted to the fair value on initial A financial liability is derecognised when the obligation
recognition. The Group’s financial liabilities include under the liability is discharged, cancelled or expires.
trade and other payables, Non-Convertible Debentures Where an existing financial liability is replaced
loans and borrowings including bank overdrafts. by another from the same lender on substantially
different terms, or the terms of an existing liability are
3.2.5. Subsequent Measurement substantially modified, such an exchange or modification
is treated as de-recognition of the original liability and
Financial liabilities other than financial liabilities at fair
the recognition of a new liability. The difference between
value through profit or loss which includes derivative
the carrying value of the original financial liability and
financial instruments are subsequently carried at
the consideration paid is recognised in the Statement of
amortized cost using the effective interest method.
profit and loss.
Subsequent measurement of derivative financial
instruments are at fair value as detailed under Note 3.7
‘Derivative Financial Instruments’. 3.4. Offsetting
Financial assets and financial liabilities are generally
3.3. Derecognition of financial assets and liabilities reported gross in the balance sheet. Financial assets and
liabilities are offset and the net amount is presented in
3.3.1. Financial Asset the balance sheet when the Group has a legal right to
The Group derecognizes a financial asset when the offset the amounts and intends to settle on a net basis or
contractual cash flows from the asset expire or it to realise the asset and settle the liability simultaneously
transfers its rights to receive contractual cash flows in all the following circumstances:
from the financial asset in a transaction in which
substantially all the risks and rewards of ownership a. The normal course of business
are transferred. Any rights and obligations created or
b. The event of default

Consolidated
Financial
Statements
Notes
c. The event of insolvency or bankruptcy of the Group Based on the above process, the Group categorises its
and/or its counterparties loans into three stages as described below:
3.5. Impairment of financial assets For non-impaired financial assets

In accordance with Ind AS 109, the Group uses ‘Expected • Stage 1 is comprised of all non-impaired financial
Credit Loss’ model (ECL), for evaluating impairment of assets which have not experienced a significant
financial assets other than those measured at Fair value increase in credit risk since initial recognition.
through profit or loss. The Group follows simplified A 12-month ECL provision is made for stage 1
approach for recognition of impaired loss allowance on: financial assets. In assessing whether credit risk
has increased significantly, The Companies in the
a)
Trade Receivables or contract revenue Group compares the risk of a default occurring on
receivables; and the financial asset as at the reporting date with the
risk of a default occurring on the financial asset as
b) All lease receivables resulting from transactions at the date of initial recognition.
within the scope of Ind AS 116.
• Stage 2 is comprised of all non-impaired financial
assets which have experienced a significant
3.5.1. Overview of the Expected Credit Loss (ECL)model
increase in credit risk since initial recognition. The
Expected Credit Loss, at each reporting date, is measured Companies in the Group recognises lifetime ECL for
through a loss allowance for a financial asset: stage 2 financial assets. In subsequent reporting
periods, if the credit risk of the financial instrument
- At an amount equal to the lifetime expected credit improves such that there is no longer a significant
losses if the credit risk on that financial instrument increase in credit risk since initial recognition,
has increased significantly since initial recognition. then entities shall revert to recognizing 12 months
ECL provision.
- At an amount equal to 12-month expected credit
losses, if the credit risk on a financial instrument has
not increased significantly since initial recognition. For impaired financial assets:
Financial assets are classified as Stage 3 when there
Lifetime expected credit losses means expected credit is objective evidence of impairment as a result of one
losses that result from all possible default events over or more loss events that have occurred after initial
the expected life of a financial asset. recognition with a negative impact on the estimated
future cash flows of a loan or a portfolio of loans.
12-month expected credit losses means the portion of The Group recognises lifetime ECL for impaired
Lifetime ECL that represent the ECLs that result from financial assets.
default events on financial assets that are possible
within the 12 months after the reporting date.
3.5.2. Estimation of Expected Credit Loss
The Group performs an assessment, at the end of each The mechanics of the ECL calculations are outlined
reporting period, of whether a financial asset’s credit below and the key elements are as follows:
risk has increased significantly since initial recognition.
When making the assessment, the change in the risk of a Probability of Default (PD) - The Probability of Default

default occurring over the expected life of the financial is an estimate of the likelihood of default over a given
instrument is used instead of the change in the amount time horizon.
of expected credit losses.

Notes
The Group uses historical information where available Loans are written off (either partially or in full) when
to determine PD. Considering the different products there is no realistic prospect of recovery. This is
and schemes, the Group has bifurcated its loan generally the case when the Group determines that the
portfolio into various pools. For certain pools where borrower does not have assets or sources of income that
historical information is available, the PD is calculated could generate sufficient cash flows to repay the amounts
considering fresh slippage of past years. For those pools subjected to write-offs. Any subsequent recoveries
where historical information is not available, the PD/ against such loans are credited to the Statement of Profit
default rates as stated by external reporting agencies and Loss.
is considered.
3.6. Determination of fair value of Financial

E xposure at Default (EAD) - The Exposure at Default

Instruments
is an estimate of the exposure at a future default date,
considering expected changes in the exposure after the The Group measures financial instruments, such as,
reporting date, including repayments of principal and investments at fair value at each balance sheet date.
interest, whether scheduled by contract or otherwise,
expected draw downs on committed facilities, and Fair value is the price that would be received to sell
accrued interest from missed payments. an asset or paid to transfer a liability in an orderly
transaction between market participants at the
Loss Given Default (LGD) - The Loss Given Default is an
measurement date. The fair value measurement is based
estimate of the loss arising in the case where a default on the presumption that the transaction to sell the asset
occurs at a given time. It is based on the difference or transfer the liability takes place either:
between the contractual cash flows due and those that
the lender would expect to receive, including from the i. In the principal market for the asset or liability, or
realisation of any collateral.
ii. In the absence of a principal market, in the most
advantageous market for the asset or liability
Forward looking information
While estimating the expected credit losses, the Group The principal or the most advantageous market must be
reviews macro-economic developments occurring in accessible by the Group.
the economy and market it operates. On a periodic
basis, the Group analyses if there is any relationship The fair value of an asset or a liability is measured using
between key economic trends like GDP, unemployment the assumptions that market participants would use
rates, benchmark rates set by the Reserve Bank of India, when pricing the asset or liability, assuming that market
inflation etc. with the estimate of PD, LGD determined participants act in their economic best interest.
by the Group based on its internal data. While the
internal estimates of PD, LGD rates by the Group may A fair value measurement of a non-financial asset takes
not be always reflective of such relationships, temporary into account a market participant’s ability to generate
overlays, if any, are embedded in the methodology to economic benefits by using the asset in its highest and
reflect such macro-economic trends reasonably. best use or by selling it to another market participant
that would use the asset in its highest and best use.
To mitigate its credit risks on financial assets, the Group
seeks to use collateral, where possible. The collateral The Group uses valuation techniques that are appropriate
comes in various forms, such as cash, securities, letters in the circumstances and for which sufficient data are
of credit/guarantees, vehicles, etc. However, the fair available to measure fair value, maximising the use of
value of collateral affects the calculation of ECLs. The relevant observable inputs and minimising the use of
collateral is majorly the property for which the loan unobservable inputs.
is given. The fair value of the same is based on data
provided by third party or management judgements.

Consolidated
Financial
Statements
Notes
The financial instruments are classified based on a derivative is designated and is effective as a hedging
hierarchy of valuation techniques, as summarised below: instrument, in which event the timing of the recognition
in the Statement of Profit and Loss depends on the
Level 1 financial instruments −Those where the inputs nature of the hedge relationship. The Company has
used in the valuation are unadjusted quoted prices from designated the derivative financial instruments as cash
active markets for identical assets or liabilities that the flow hedges of recognised liabilities and unrecognised
Group has access to at the measurement date. The Group firm commitments.
considers markets as active only if there are sufficient
trading activities with regards to the volume and
Hedge accounting
liquidity of the identical assets or liabilities and when
there are binding and exercisable price quotes available In order to manage particular risks, the Company
on the balance sheet date. applies hedge accounting for transactions that meet
specific criteria.
Level 2 financial instruments−Those where the inputs
that are used for valuation and are significant, are At the inception of a hedge relationship, the Company
derived from directly or indirectly observable market formally designates and documents the hedge
data available over the entire period of the instrument’s relationship and the risk management objective and
life. Such inputs include quoted prices for similar assets strategy for undertaking the hedge. The company enters
or liabilities in active markets, quoted prices for identical into derivative financial instruments that have critical
instruments in inactive markets and observable inputs terms aligned with the hedged item and in accordance
other than quoted prices such as interest rates and with the Risk management policy of the company, the
yield curves, implied volatilities, and credit spreads. In hedging relationship is extended to the entire term of
addition, adjustments may be required for the condition the hedged item. The hedges are expected to be highly
or location of the asset or the extent to which it relates effective if the hedging instrument is offsetting changes
to items that are comparable to the valued instrument. in fair value or cash flows of the hedged item attributable
However, if such adjustments are based on unobservable to the hedged risk. The assessment of hedge effectiveness
inputs which are significant to the entire measurement, is carried out at inception and on an ongoing basis
the Group will classify the instruments as Level 3. to determine that the hedging relationship has been
effective throughout the financial reporting periods for
Level 3 financial instruments −Those that include one which they were designated.
or more unobservable input that is significant to the
measurement as whole. Cash Flow Hedges
A cash flow hedge is a hedge of the exposure to variability
3.7. Derivative financial instruments in cash flows that is attributable to a particular risk
The Group enters into derivative financial instruments associated with a recognised asset or liability (such as
such as foreign exchange forward contracts and cross all or some future interest payments on variable rate
currency swaps to manage its exposure to foreign debt) or a highly probable forecast transaction and could
exchange rate risk and interest rate swaps to manage its affect profit and loss. For designated and qualifying cash
interest rate risk. flow hedges, the effective portion of the cumulative gain
or loss on the hedging instrument is initially recognised
Derivatives are initially recognised at fair value on the directly in OCI within equity (cash flow hedge reserve).
date when a derivative contract is entered into and are The ineffective portion of the gain or loss on the hedging
subsequently remeasured to their fair value at each instrument is recognised immediately in the Statement
balance sheet date and carried as assets when their fair of Profit and Loss. When the hedged cash flow affects the
value is positive and as liabilities when their fair value Statement of Profit and Loss, the effective portion of the
is negative. The resulting gain/loss is recognised in the gain or loss on the hedging instrument is recorded in the
Statement of Profit and Loss immediately unless the corresponding income or expense line of the Statement

Notes
of Profit and Loss. When a hedging instrument expires, repairs and maintenance costs are expensed off as and
is sold, terminated, exercised, or when a hedge no longer when incurred.
meets the criteria for hedge accounting, any cumulative
gain or loss that has been recognised in OCI at that time
3.9.1. Depreciation
remains in OCI and is recognised when the hedged
forecast transaction is ultimately recognised in the Depreciation on Property, Plant and Equipment is
Statement of Profit and Loss. When a forecast transaction calculated by the Company and subsidiary companies
is no longer expected to occur, the cumulative gain or incorporated in India using written down value method
loss that was reported in OCI is immediately transferred (WDV) to write down the cost of property and equipment
to the Statement of Profit and Loss. to their residual values over their estimated useful lives
which is in line with the estimated useful life as specified
in Schedule II of the Companies Act, 2013 or useful life
3.8. Cash and cash equivalents estimated by the respective management based on
Cash and cash equivalents comprise of cash at banks and technical evaluation.
on hand and short-term deposits with a maturity of three
months or less, which are subject to an insignificant risk The estimated useful lives are as follows:
of changes in value. Particulars Useful life
Leasehold Improvements 10 years
For the purpose of the Statement of Cash Flows, cash and Furniture and fixture 10 years
cash equivalents consist of cash and short- term deposits, Plant 15 years
as defined above and investment in reverse re-purchase
Office equipment (MML, MHIL, BML, MFL) 5 years
against treasury bills and bonds, net of outstanding bank
Office equipment (MIBPL) 10 years
overdrafts if any, as they are considered an integral part
Server and networking 6 years
of the Group’s cash management.
Computers 3 years
Building 30 years
3.9. Property, plant and equipment Vehicles (MML, MFL) 8 years
Property, plant and equipment (PPE) are measured at Vehicles (MIBPL, BML) 10 years
cost less accumulated depreciation and accumulated Wind Mill 22 years
impairment, if any. Cost of an item of property, plant
and equipment comprises its purchase price, including In respect of foreign subsidiary AAF, the Property, Plant
import duties and non-refundable purchase taxes, after and Equipment are depreciated on straight line method
deducting trade discounts and rebates, any directly over the estimated useful life of the assets.
attributable cost of bringing the item to its working
condition for its intended use and estimated costs of The estimated useful lives are as follows:
dismantling and removing the item and restoring the
site on which it is located. Particulars Useful life
Building 8 years
Advances paid towards the acquisition of fixed assets, Plant 8 years
outstanding at each reporting date are shown under Furniture and fixture 6 years
other non-financial assets. The cost of property, plant Office equipment 6 years
and equipment not ready for its intended use at each Vehicles 6.5 years
reporting date are disclosed as capital work-in-progress. Computers 6 years
Subsequent expenditure related to the asset are added

The residual values, useful lives and methods of
to its carrying amount or recognised as a separate asset depreciation of property, plant and equipment are
only if it increases the future benefits of the existing reviewed at each financial year end and adjusted
asset, beyond its previously assessed standards of prospectively, if appropriate. Changes in the expected
performance and cost can be measured reliably. Other

Consolidated
Financial
Statements
Notes
useful life are accounted for by changing the amortisation Gains or losses from derecognition of intangible assets
period or methodology, as appropriate, and treated as are measured as the difference between the net disposal
changes in accounting estimates. proceeds and the carrying amount of the asset are
recognised in the Statement of Profit and Loss when the
Property plant and equipment is derecognised on asset is derecognised.
disposal or when no future economic benefits are
expected from its use. Any gain or loss arising on
3.11. Investment Property
derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
Properties, held to earn rentals and/or capital
amount of the asset) is recognised in other income/ appreciation are classified as investment property
expense in the Statement of Profit and Loss in the year and measured and reported at cost, including
the asset is derecognised. The date of disposal of an transaction costs.
item of property, plant and equipment is the date the
recipient obtains control of that item in accordance with An investment property is derecognised upon disposal
the requirements for determining when a performance or when the investment property is permanently
obligation is satisfied in Ind AS 115. withdrawn from use and no future economic benefits are
expected from the disposal. Any gain or loss arising on
derecognition of property is recognised in the Statement
3.10. Intangible assets of Profit and Loss in the same period.
An intangible asset is recognised only when its cost can
be measured reliably and it is probable that the expected The fair value of investment property is disclosed in
future economic benefits that are attributable to it will the notes accompanying the consolidated financial
flow to the Group. statements. Fair value has been determined by
independent valuer who holds a recognised and relevant
Intangible assets acquired separately are measured on professional qualification and has recent experience in
initial recognition at cost. The cost of an intangible asset the location and category of the investment property
comprises its purchase price including import duties and being valued. The estimated useful life is 15 years.
non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of
3.12. Impairment of non–financial assets: Property,
bringing the item to its working condition for its intended
Plant and Equipment, Intangible Assets and
use. Following initial recognition, intangible assets are
Investment property
carried at cost less any accumulated amortisation and
any accumulated impairment losses. The Group assesses, at each reporting date, whether
there is any indication that any Property, Plant and
Subsequent expenditure related to the assets added to Equipment, Intangible Assets, investment property or
its carrying amount or recognised as a separate asset group of assets called Cash Generating Units (CGU) may
only if it increases the future benefits of the existing be impaired. If any such indication exists, or when annual
asset, beyond its previously assessed standards of impairment testing for an asset is required, the Group
performance and cost can be measured reliably. estimates the asset’s recoverable amount to determine
the extent of impairment, if any.
Intangible assets comprising of software is amortised
by the Company and MML and MIBPL on straight line An asset’s recoverable amount is the higher of an asset’s
basis over a period of 5 years, unless it has a shorter or cash-generating unit’s (CGU) fair value less costs
useful life. In respect of BML and AAF computer of disposal and its value in use. Recoverable amount is
software are amortized over a period of 3 years and 8 determined for an individual asset, unless the asset does
years respectively. In respect of MHIL, intangible assets not generate cash inflows that are largely independent
are amortised on a WDV basis over a period of 5 years, of those from other assets or groups of assets. When
unless it has a shorter useful life. the carrying amount of an asset or CGU exceeds its

Notes
recoverable amount, the asset is considered impaired contribution plan in which both the employee and the
and is written down to its recoverable amount. Group contribute monthly at a stipulated percentage of
the covered employee’s salary. Contributions are made
In assessing value in use, the estimated future cash to Employees Provident Fund Organization in respect of
flows are discounted to their present value using a Provident Fund, Pension Fund and Employees Deposit
pre-tax discount rate that reflects current market Linked Insurance Scheme at the prescribed rates and are
assessments of the time value of money and the risks charged to Statement of Profit and Loss at actuals. The
specific to the asset. In determining fair value less costs Group has no liability for future provident fund benefits
of disposal, recent market transactions are taken into other than its annual contribution.
account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations
B. Defined Benefit schemes
are corroborated by valuation multiples, quoted share
prices for publicly traded companies or other available Gratuity
fair value indicators.
The Company and its subsidiaries BML, MHIL and MML
provides for gratuity covering eligible employees under
An assessment is made at each reporting date to
which a lump sum payment is paid to vested employees
determine whether there is an indication that previously
at retirement, death, incapacitation or termination of
recognised impairment losses no longer exist or have
employment, of an amount reckoned on the respective
decreased. If such indication exists, the Group estimates
employee’s salary and his tenor of employment with the
the asset’s or CGU’s recoverable amount. A previously
Group. The said companies in the Group accounts for its
recognised impairment loss is reversed only if there has
liability for future gratuity benefits based on actuarial
been a change in the assumptions used to determine the
valuation determined at each Balance Sheet date by
asset’s recoverable amount since the last impairment
an Independent Actuary using Projected Unit Credit
loss was recognised. The reversal is limited so that
Method. The Companies makes annual contribution to
the carrying amount of the asset does not exceed its
a Gratuity Fund administered by Trustees and separate
recoverable amount, nor exceed the carrying amount
schemes managed by Kotak Mahindra Old Mutual
that would have been determined, net of depreciation,
Life Insurance Limited and/or ICICI Prudential Life
had no impairment loss been recognised for the asset in
Insurance Company Limited. In respect of subsidiary
prior years. Such reversal is recognised in the Statement
BML, contribution to gratuity fund is made through Life
of Profit and Loss unless the asset is carried at a revalued
Insurance Corporation of India group gratuity fund. In
amount, in which case, the reversal is treated as a
respect of subsidiaries MHIL and MML gratuity liability
revaluation increase.
is not funded. In respect of its foreign subsidiary AAF,
future gratuity benefits are accounted for as liability
3.13. Employee Benefits Expenses based on actuarial valuation by Project Unit Credit
Method in accordance with LKAS 19. The gratuity
3.13.1. Short Term Employee Benefits liability is not externally funded.
The undiscounted amount of short term employee
benefits expected to be paid in exchange for the The obligation is measured at the present value of the
services rendered by employees are recognised as an estimated future cash flows.
expense during the period when the employees render
the services An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
3.13.2. Post-Employment Benefits
discount rate, future salary increases and mortality rates.
A. Defined contribution schemes Due to the complexities involved in the valuation and its
long-term nature, these liabilities are highly sensitive
All eligible employees of the Group are entitled to
receive benefits under the provident fund, a defined

Consolidated
Financial
Statements
Notes
to changes in these assumptions. All assumptions are embodying economic benefits will be required to settle
reviewed at each reporting date. the obligation, and a reliable estimate can be made of the
amount of the obligation.
Re-measurement, comprising of actuarial gains and
losses (excluding amounts included in net interest When the effect of the time value of money is material,
on the net defined benefit liability), are recognized the enterprise determines the level of provision by
immediately in the balance sheet with a corresponding discounting the expected cash flows at a pre-tax rate
debit or credit to retained earnings through Other reflecting the current rates specific to the liability. The
Comprehensive Income in the period in which they occur. expense relating to any provision is presented in the
Re-measurements are not reclassified to profit and loss Statement of Profit and Loss net of any reimbursement.
in subsequent periods.
3.15. Taxes
3.13.3. Other Long term employee benefits Income tax expense represents the sum of current tax
and deferred tax.
Accumulated compensated absences
The Group provides for liability of accumulated
compensated absences for eligible employees on the 3.15.1. Current Tax
basis of an independent actuarial valuation carried out Current tax is the amount of income taxes payable in
at the end of the year, using the projected unit credit respect of taxable profit for a period. Taxable profit differs
method. Actuarial gains and losses are recognised in from ‘profit before tax’ as reported in the Statement of
the Statement of Profit and Loss for the period in which Profit and Loss because of items of income or expense
they occur. that are taxable or deductible in other years and items
that are never taxable or deductible in accordance with
applicable tax laws.
3.13.4. Employee share based payments
Stock options granted to the employees of the Company The tax rates and tax laws used to compute the amount
under the stock option scheme established are accounted are those that are enacted, or substantively enacted, by
as per the accounting treatment prescribed by the SEBI the end of reporting date where the respective Company
(Share Based Employee Benefits) Regulations, 2014 operates and generates taxable income.
issued by Securities and Exchange Board of India.
Current income tax relating to items recognised outside
The Company follows the fair value method of accounting profit or loss is recognised outside profit or loss i.e.,
for the options and accordingly, the excess of market either in other comprehensive income or in equity.
value of the stock options as on the date of grant over Current tax items are recognised in correlation to the
the fair value of the options is recognised as deferred underlying transaction either in other comprehensive
employee compensation cost and is charged to the income or directly in equity. Management periodically
Statement of Profit and Loss on graded vesting basis evaluates positions taken in the tax returns with respect
over the vesting period of the options. to situations in which applicable tax regulations are
subject to interpretation and establishes provisions
The dilutive effect of outstanding options is reflected as where appropriate.
additional share dilution in the computation of diluted
earnings per share.
3.15.2. Deferred tax
Deferred tax is provided on temporary differences at
3.14. Provisions (other than employee benefits)
the reporting date between the tax bases of assets and
Provisions are recognised when the enterprise has a liabilities used in the computation of taxable profit and
present obligation (legal or constructive) as a result of
past events, and it is probable that an outflow of resources

Notes
their carrying amounts in the consolidated financial to be utilised. Unrecognised deferred tax assets are re-
statements for financial reporting purposes. assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable
Deferred tax liabilities are recognised for all taxable profits will allow the deferred tax asset to be recovered.
temporary differences, except:
Deferred tax assets and liabilities are measured at the
i. Where the deferred tax liability arises from the tax rates that are expected to apply in the year when
initial recognition of goodwill or of an asset or the asset is realised or the liability is settled, based
liability in a transaction that is not a business on tax rates (and tax laws) that have been enacted or
combination and, at the time of the transaction, substantively enacted at the reporting date.
affects neither the accounting profit nor taxable
profit or loss Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss i.e., either in
ii. In respect of taxable temporary differences other comprehensive income or in equity. Deferred tax
associated with investments in subsidiaries, items are recognised in correlation to the underlying
where the timing of the reversal of the temporary transaction either in other comprehensive income or
differences can be controlled and it is probable that directly in equity.
the temporary differences will not reverse in the
foreseeable future Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
Deferred tax assets are recognised for all deductible assets against current tax liabilities and the deferred
temporary differences, the carry forward of unused tax taxes relate to the same taxable entity and the same
credits and any unused tax losses. Deferred tax assets are taxation authority.
recognised to the extent that it is probable that taxable
profit will be available against which the deductible
3.16. Contingent Liabilities and Assets
temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilised, except: A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
i. When the deferred tax asset relating to the by the occurrence or non-occurrence of one or more
deductible temporary difference arises from uncertain future events beyond the control of the Group
the initial recognition of an asset or liability in a or a present obligation that is not recognized because
transaction that is not a business combination and, it is not probable that an outflow of resources will be
at the time of the transaction, affects neither the required to settle the obligation. A contingent liability
accounting profit nor taxable profit or loss also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot
ii. In respect of deductible temporary differences be measured reliably. The Group does not recognize
associated with investments in subsidiaries, a contingent liability but discloses its existence in the
associates and interests in joint ventures, deferred financial statements.
tax assets are recognised only to the extent that
it is probable that the temporary differences will A contingent asset is a possible asset that arises from
reverse in the foreseeable future and taxable profit past events and whose existence will be confirmed only
will be available against which the temporary by the occurrence or non-occurrence of one or more
differences can be utilised uncertain future events not wholly within the control
of the entity. The Group does not have any contingent
The carrying amount of deferred tax assets is reviewed assets in the financial statements.
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset

Consolidated
Financial
Statements
Notes
3.17. Earnings Per Share cash flows from regular revenue generating, investing
The Group reports basic and diluted earnings per share and financing activities of the Group are segregated.
in accordance with Ind AS 33 on Earnings per share.
Basic EPS is calculated by dividing the net profit or 3.20. Leases
loss for the year attributable to equity shareholders
Effective 01 April 2019, the Group had applied Ind
(after deducting preference dividend and attributable
AS 116 ‘Leases’/SLFRS 16 to all lease contracts
taxes) by the weighted average number of equity shares
existing on 01 April 2019 by adopting the modified
outstanding during the year.
retrospective approach.
For calculating diluted earnings per share, the net profit
The Group evaluates each contract or arrangement,
or loss for the year attributable to equity shareholders
whether it qualifies as lease as defined under Ind AS 116/
and the weighted average number of shares outstanding
SLFRS 16. A contract is, or contains, a lease if the contract
during the year are adjusted for the effects of all dilutive
conveys the right to control the use of an identified asset.
potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of
the period, unless they have been issued at a later date. The Group as a lessee
In computing the dilutive earnings per share, only The Group has elected not to recognise right-of use
potential equity shares that are dilutive and that either assets and lease liabilities for short term leases that
reduces the earnings per share or increases loss per have a lease term of less than or equal to 12 months
share are included. and leases with low value assets. The Group determines
the lease term as the non-cancellable period of a lease,
3.18. Foreign currency transactions together with periods covered by an option to extend the
lease, where the Group is reasonably certain to exercise
Transactions in foreign currencies are translated into
that option.
the functional currency of the Group at the exchange
rates at the dates of the transactions or an average rate if
The Group recognises the lease payments associated
the average rate approximates the actual rate at the date
with these leases as an expense in Statement of Profit
of the transaction.
and Loss on a straight-line basis over the lease term
or another systematic basis if that basis is more
Monetary assets and liabilities denominated in foreign
representative of the pattern of the lessee’s benefit. The
currencies are translated into the functional currency at
related cash flows are classified as operating activities.
the exchange rate at the reporting date. Non-monetary
assets and liabilities that are measured at fair value in
Wherever the above exception permitted under Ind AS
a foreign currency are translated into the functional
116 is not applicable/or as per SLFRS 16, the Group at the
currency at the exchange rate when the fair value was
time of initial recognition:
determined. Non-monetary assets and liabilities that are
measured based on historical cost in a foreign currency
- measures lease liability as present value of all lease
are translated at the exchange rate at the date of the
payments discounted using the Group’s incremental
transaction. Exchange differences are recognised in the
cost of borrowing and directly attributable costs.
Statement of Profit and Loss.
Subsequently, the lease liability is increased by
interest on lease liability, reduced by lease payments
3.19. Cash-flow statement made and remeasured to reflect any reassessment
Cash flows are reported using the indirect method, or lease modifications specified in the standard, or
whereby profit before tax is adjusted for the effects of to reflect revised fixed lease payments.
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The - measures ‘Right-of-use assets’ as present value of
all lease payments discounted using the Group’s

Notes
incremental cost of borrowing and any initial significant effect on the amounts recognized in the
direct costs. Subsequently, ‘Right-of-use assets’ consolidated financial statements is included in the
is measured using cost model i.e. at cost less following notes:
any accumulated depreciation (depreciated on
straight line basis over the lease period) and any
4.1. Business Model Assessment
accumulated impairment losses adjusted for any
re-measurement of the lease liability specified in Classification and measurement of financial assets
the standard. depends on the results of the solely payments of
principal and interest test, and the business model test.
The respective companies in the Group determines
The Group as a lessor the business model at a level that reflects how groups
Leases under which the Group is a lessor are classified of financial assets are managed together to achieve a
as finance or operating leases. Lease contracts where all particular business objective. This assessment includes
the risks and rewards are substantially transferred to judgement reflecting all relevant evidence including
the lessee, the lease contracts are classified as finance how the performance of the assets is evaluated and
leases. All other leases are classified as operating leases. their performance measured, the risks that affect the
Lease payments from operating leases are recognised performance of the assets and how these are managed
as an income in the Statement of Profit and Loss on and how the managers of the assets are compensated. The
a straight-line basis over the lease term or another Group monitors financial assets measured at amortised
systematic basis if that basis is more representative cost or fair value through other comprehensive income
of the pattern in which benefit from the use of the that are derecognised prior to their maturity to
underlying asset is diminished. understand the reason for their disposal and whether
the reasons are consistent with the objective of the
business for which the asset was held. Monitoring is
4. Significant accounting judgements, estimates
part of the Group’s continuous assessment of whether
and assumptions
the business model for which the remaining financial
The preparation of financial statements in conformity assets are held continues to be appropriate and if it is not
with the Ind AS requires the management to make appropriate whether there has been a change in business
judgments, estimates and assumptions that affect model and so a prospective change to the classification
the reported amounts of revenues, expenses, assets of those assets.
and liabilities and the accompanying disclosure and
the disclosure of contingent liabilities, at the end
of the reporting period. Estimates and underlying 4.2. Effective Interest Rate (EIR) method
assumptions are reviewed on an ongoing basis. The Group’s EIR methodology, recognises interest
Revisions to accounting estimates are recognised in the income using a rate of return that represents the best
period in which the estimates are revised if the revision estimate of a constant rate of return over the expected
affects only that period or in the period of the revision behavioural life of loans given and recognises the effect of
and future periods if the revision affects both current potentially different interest rates at various stages and
and future periods. Although these estimates are based other characteristics of the product life cycle (including
on the management’s best knowledge of current events prepayments and penalty interest and charges).
and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a This estimation, by nature, requires an element of
material adjustment to the carrying amounts of assets judgement regarding the expected behaviour and
or liabilities in future periods. life-cycle of the instruments, probable fluctuations in
collateral value as well as expected changes to India’s
In particular, information about significant areas base rate and other fee income/expense that are integral
of estimation, uncertainty and critical judgments parts of the instrument.
in applying accounting policies that have the most

Consolidated
Financial
Statements
Notes
4.3. Impairment of loans portfolio measured based on quoted prices in active markets,
The measurement of impairment losses across all their fair value is measured using various valuation
categories of financial assets requires judgement, in techniques. The inputs to these models are taken from
particular, the estimation of the amount and timing of observable markets where possible, but where this is not
future cash flows and collateral values when determining feasible, a degree of judgment is required in establishing
impairment losses and the assessment of a significant fair values. Judgments include considerations of inputs
increase in credit risk. These estimates are driven such as liquidity risk, credit risk and volatility. Changes
by a number of factors, changes in which can result in in assumptions about these factors could affect the
different levels of allowances. reported fair value of financial instruments.
It has been the Group’s policy to regularly review its 4.6. Determination of lease term
models in the context of actual loss experience and
Ind AS 116 “Leases” requires lessee to determine the
adjust when necessary.
lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate the lease,
4.4. Defined employee benefit assets and liabilities if the use of such option is reasonably certain. The Group
The cost of the defined benefit gratuity plan and the makes assessment on the expected lease term on lease by
present value of the gratuity obligation are determined lease basis and thereby assesses whether it is reasonably
using actuarial valuations. An actuarial valuation certain that any options to extend or terminate the
involves making various assumptions that may differ contract will be exercised. In evaluating the lease term,
from actual developments in the future. These include the Group considers factors such as any significant
the determination of the discount rate, future salary leasehold improvements undertaken over the lease
increases and mortality rates. Due to the complexities term, costs relating to the termination of lease and the
involved in the valuation and its long-term nature, a importance of the underlying to the Group’s operations
defined benefit obligation is highly sensitive to changes taking into account the location of the underlying asset
in these assumptions. All assumptions are reviewed at and the availability of the suitable alternatives. The lease
each reporting date. term in future periods is reassessed to ensure that the
lease term reflects the current economic circumstances.
4.5. Fair value measurement

4.7. Other estimates
When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be These include contingent liabilities, useful lives of
tangible and intangible assets etc.

Notes

Note 5.1: Cash and cash equivalents
As at As at
Particulars
March 31, 2023 March 31, 2022
Cash on hand 1,699.11 1,957.21
Balances with Banks
- in current accounts 59,057.12 36,409.48
- in fixed deposit (maturing within a period of three months) 11,948.46 34,003.24
Investment in TREPS 4,997.14 27,988.21
Total 77,701.83 100,358.14
Note 5.2: Bank balance other than cash and cash equivalents
As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed deposits with bank (Maturing after period of three months) 1,861.29 857.02
Fixed deposits with bank under lien ( Refer Note 5.2.1)
- Maturing within a period of three months 6.96 549.01
- Maturing after period of three months 679.71 1,233.87
Balance in other escrow accounts
- Unpaid (Unclaimed) Dividend Account 9.16 8.67
- Unspent CSR expenditure account 22.83 66.83
- Unpaid (Unclaimed) interest and redemption proceeds of Non-Convertible debentures - Public 74.81 76.07
Issue
Total 2,654.76 2,791.47
Note 5.2.1 Fixed deposits with bank under lien

As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed Deposits given as Security for borrowings 381.56 1,202.61
Fixed Deposits given as Security for guarantees 303.10 298.46
Fixed Deposits on which lien is marked for other purposes 2.01 281.81
Total 686.67 1,782.88
Note 5.3: The amount of Fixed deposits and Investment in TREPS in Notes 5.1 and 5.2 above does not include interest accrued
aggregating to ₹64.36 millions (March 31,2022: ₹139.18 millions) disclosed separately under Other financial assets in Note 10.
Details of such interest accrued is as follows :
As at As at
Particulars
March 31, 2023 March 31, 2022
Fixed deposit and Investment in TREPS (maturing within a period of three months) 22.12 18.23
Fixed deposits with bank under lien (maturing within a period of three months):
Fixed deposits with bank under lien (maturing after period of three months):
Total 64.36 139.18

Consolidated
Financial
Statements
Notes

Note 6: Derivative financial instruments
Notional Notional Notional Notional
Particulars Fair Fair Fair Fair
amounts amounts amounts amounts
value- value- value- value-
(USD (INR (USD (INR
Assets Liabilities Assets Liabilities
Millions) Millions) Millions) Millions)
(i) Currency derivatives
- Forward contracts 643.07 52,876.63 - 1,898.52 851.61 64,545.84 - 4,797.97
- Cross currency swaps - - - - 212.25 15,796.72 605.01 -
(ii) Interest Rate derivatives
- Interest rate swaps - 6,000.00 - 23.21 - - - -
Total 643.07 58,876.63 - 1,921.73 1,063.86 80,342.56 605.01 4,797.97
Included in above are derivatives held for hedging
and risk management purposes as follows:
(i) Fair value hedging - - - - - - - -
(ii) Cash flow hedging:
- Currency derivatives 643.07 52,876.63 - 1,898.52 1,063.86 80,342.56 605.01 4,797.97
- Interest rate derivatives - 6,000.00 - 23.21 - - -
(iii) Net investment hedging - - - - - - - -
(iv) Undesignated Derivatives - - - - - - - -
Total (i)+ (ii)+(iii)+(iv) 643.07 58,876.63 - 1,921.73 1,063.86 80,342.56 605.01 4,797.97
Note 7: Receivables
As at As at
Particulars
March 31, 2023 March 31, 2022
(I) Trade Receivables
a) Receivables Considered good - secured - -
b) Receivables Considered good - unsecured
Receivables from Money Transfer business 15.16 19.00
Receivable from Power generation - Windmill 0.90 2.44
c) Receivables which have significant increase in credit risk - -
d) Receivables - Credit impaired - -
e) Other trade receivables 82.89 45.19
f) Commission receivable - 3.46
Total 98.95 70.09
(II) Other Receivables - -
Less: Allowance for impairment loss - -
Total Net receivable 98.95 70.09
Trade receivables are non-interest bearing and are short-term in nature. These consist of receivable from government,
insurance business and other parties, and does not involve any credit risk.

Notes

7.1 Trade Receivable Ageing Schedule
As at 31st March, 2023
Particulars
Less than 6 6 months - 1-2 More than
2 - 3 years Total
months 1 years years 3 years
(i) Undisputed Trade receivables - 96.22 0.31 2.42 - - 98.95
considered good
impaired
considered good
impaired
As at 31st March, 2022

Particulars
2 - 3 years Total
(i) Undisputed Trade receivables - 69.97 0.12 - - - 70.09
considered good
impaired
considered good
impaired

Notes
Financial

Statements
Note 8: Loans
Consolidated

At Fair value
Particulars Amortised Designated
Through Other Total
Cost Through profit at fair value
Comprehensive Sub-total
or loss through profit
Income
or loss
(A)
i) Gold Loan 643,544.27 - - - - 643,544.27
ii) Corporate Loan 1,437.32 - - - - 1,437.32
iii) Personal Loan 7,434.38 - - - - 7,434.38
iv) Staff Loan 35.21 - - - - 35.21
v) Housing Loan 9,152.87 - - - - 9,152.87
vi) Project finance Loan 0.17 - - - - 0.17
vii) Mortgage Loan 323.26 - - - - 323.26
viii) Pledge Loan 67.36 - - - - 67.36
ix) Business Loan 2,270.98 - - - - 2,270.98
x) Vehicle Loan 1,286.24 - - - - 1,286.24
xi) Micro finance Loan 47,410.41 - - - - 47,410.41
Total (A) - Gross 715,024.02 - - - - 715,024.02

xii) Other Loans 2,061.55 - - - - 2,061.55
Total ( A) - Net 705,543.84 - - - - 705,543.84

Less : Impairment loss allowance 9,480.18 - - - - 9,480.18
(B)
I) Secured by tangible assets (including book debts)
i) Gold Loan 643,544.27 - - - - 643,544.27
ii) Corporate Loan 1,437.32 - - - - 1,437.32
iii) Housing Loan 9,152.87 - - - - 9,152.87
iv) Mortgage Loan 323.26 - - - - 323.26
v) Vehicle Loan 1,286.24 - - - - 1,286.24
vi) Business Loan 21.54 - - - - 21.54
vii) Micro finance Loan 218.42 - - - - 218.42
Total (I) - Gross 657,697.42 - - - - 657,697.42

viii) Other Loans 1,713.50 - - - - 1,713.50

Total (I) - Net 649,539.29 - - - - 649,539.29
329
330
Notes

At Fair value
Particulars Amortised Designated
Through Other Total
Cost Through profit at fair value
Income
or loss
II) Covered by Bank / Government Guarantees

III) Unsecured
- - - - - -
i) Corporate Loan - - - - - -
ii) Personal Loan 7,434.38 - - - - 7,434.38
iii) Staff Loan 35.21 - - - - 35.21
iv) Project finance Loan 0.17 - - - - 0.17
v) Pledge Loan 67.36 - - - - 67.36
vi) Business Loan 2,249.44 - - - - 2,249.44
vii) Micro finance Loan 47,191.99 - - - - 47,191.99
Total (III) - Gross 57,326.60 - - - - 57,326.60

viii) Other Loans 348.05 - - - - 348.05
Total (III) - Net 56,004.55 - - - - 56,004.55

Total (I+II+III) - Net 705,543.84 - - - - 705,543.84

i) Public Sector - - - - - -
(II) Loans outside India

ii) Others 709,730.25 - - - - 709,730.25
Total ( C) - Gross 715,024.02 - - - - 715,024.02

ii) Others 5,293.77 - - - - 5,293.77
Total ( C )- Net 705,543.84 - - - - 705,543.84

Less: Impairment Loss Allowance ( C ) 9,480.18 - - - - 9,480.18
Notes
Financial

Statements

Consolidated
At Fair value
Particulars Designated
Amortised Cost Through Other Through profit at fair value Total
Income
or loss
(A)
i) Gold Loan 599,079.01 - - - - 599,079.01
ii) Corporate Loan 206.81 - - - - 206.81
iii) Personal Loan 3,745.76 - - - - 3,745.76
iv) Staff Loan 26.38 - - - - 26.38
v) Housing Loan 9,202.57 - - - - 9,202.57
vi) Project finance Loan 1.06 - - - - 1.06
vii) Mortgage Loan 371.29 - - - - 371.29
viii) Pledge Loan 27.06 - - - - 27.06
ix) Business Loan 1,058.57 - - - - 1,058.57
x) Vehicle Loan 1,868.26 - - - - 1,868.26
xi) Micro finance Loan 37,963.51 - - - - 37,963.51
Total (A) - Gross 655,444.37 - - - - 655,444.37

xii) Other Loans 1,894.09 - - - - 1,894.09
Total ( A) - Net 645,276.41 - - - - 645,276.41

(B)
I) Secured by tangible assets (including book debts)
i) Gold Loan 599,079.01 - - - - 599,079.01
ii) Corporate Loan 206.81 - - - - 206.81
iii) Housing Loan 9,202.57 - - - - 9,202.57
iv) Mortgage Loan 371.29 - - - - 371.29
v) Vehicle Loan 1,868.26 - - - - 1,868.26
vi) Business Loan 31.75 - - - - 31.75
vii) Micro finance Loan 12.06 12.06
Total (I) - Gross 612,122.07 - - - - 612,122.07

viii) Other Loans 1,350.32 - - - - 1,350.32

Total (I) - Net 604,680.12 - - - - 604,680.12
331
332
Notes

At Fair value
Particulars Designated
Amortised Cost Through Other Through profit at fair value Total
Income
or loss
II) Covered by Bank / Government Guarantees

III) Unsecured
- - - - - -
i) Corporate Loan - - - - - -
ii) Personal Loan 3,745.76 - - - - 3,745.76
iii) Staff Loan 26.38 - - - - 26.38
iv) Project finance Loan 1.06 - - - - 1.06
v) Pledge Loan 27.06 - - - - 27.06
vi) Business Loan 1,026.82 - - - - 1,026.82
vii) Micro finance Loan 37,951.45 - - - - 37,951.45
Total (III) - Gross 43,322.30 - - - - 43,322.30

viii) Other Loans 543.77 - - - - 543.77
Total (III) - Net 40,596.29 - - - - 40,596.29

Total B (I+II+III) - Net 645,276.41 - - - - 645,276.41

(II) Loans outside India

ii) Others 650,985.52 - - - - 650,985.52
-
Total ( C) - Gross 655,444.37 - - - - 655,444.37

ii) Others 4,458.85 - - - - 4,458.85
Total ( C )- Net 645,276.41 - - - - 645,276.41

Less: Impairment Loss Allowance ( C ) 10,167.96 - - - - 10,167.96
Consolidated
Financial
Statements
Notes

8.1 Disclosures on Credit quality and analysis of ECL allowance of the company and its subsidiaries
incorporated in India
8.1.1 Muthoot Finance Limited
Credit Quality of Loan Assets
rating system and year-end stage classification. The amounts presented are gross of impairment allowances. Details of
the Company’s internal grading system are explained in Note 44.

Performing
High grade 605,843.31 - - 605,843.31 552,090.89 - - 552,090.89
Standard grade 10,859.83 - - 10,859.83 10,718.16 - - 10,718.16
Sub-standard grade - 5,762.32 - 5,762.32 - 11,036.92 - 11,036.92
Past due but not impaired - 4,178.91 - 4,178.91 - 10,026.41 - 10,026.41
Non- performing
Total 616,703.14 9,941.23 23,985.96 650,630.33 562,809.05 21,063.33 17,372.24 601,244.62
received
Gross carrying amount closing 650,306.42 601,061.25
balance net of EIR impact of
service charge received
A n analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to

receivables under financing activities is, as follows:
2022-23 2021-22
opening balance
purchased
Assets derecognised or repaid (637,685.16) (18,839.36) (15,318.92) (671,843.44) (602,036.61) (3,282.34) (3,357.25) (608,676.19)
Transfers to Stage 2 (8,484.27) 8,485.31 (1.04) - (21,000.02) 21,000.05 (0.03) -
Transfers to Stage 3 (21,368.11) (736.76) 22,104.87 - (16,174.94) (203.79) 16,378.73 -
closing balance
received
Gross carrying amount closing 650,306.42 601,061.26
service charge received

Notes

Reconciliation of ECL balance is given below:
2022-23 2021-22
ECL allowance - opening balance 5,169.69 209.80 1,839.42 7,218.91 5,591.56 60.42 605.51 6,257.49
New assets originated or purchased 5,859.16 - - 5,859.16 6,037.17 - - 6,037.17
Transfers to Stage 2 (77.31) 78.34 (1.04) (0.01) (218.67) 218.70 (0.03) -
Impact on year end ECL of exposures 80.16 9.82 2,199.84 2,289.82 83.29 (11.46) 1,809.78 1,881.61
transferred between stages during the year
ECL allowance - closing balance 5,092.93 99.97 2,464.72 7,657.62 5,169.69 209.80 1,839.42 7,218.91
8.1.2 Muthoot Money Limited

rating system and year-end stage classification. The amounts presented are gross of impairment allowances.

Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Performing
High grade 3,527.30 - - 3,527.30 915.88 0.44 - 916.32
Standard grade 182.25 - - 182.25 425.39 0.32 - 425.71
Sub-standard grade - 59.97 - 59.97 - 305.45 - 305.45
Past due but not impaired - 13.66 - 13.66 - 286.18 - 286.18
Non- performing
Individually impaired - - 144.31 144.31 - - 136.89 136.89
Total 3,709.54 73.63 144.31 3,927.49 1,341.27 592.39 136.89 2,070.54
EIR impact of Service Charges (0.86) 0.03 0.05 (0.78) 0.71 0.12 0.03 0.86
Received and Commission Paid
Gross carrying amount 3,708.69 73.67 144.36 3,926.71 1,341.98 592.51 136.92 2,071.41
impact of service charges
received

Consolidated
Financial
Statements
Notes

An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to
2022-23 2021-22
Particulars
opening balance
New assets originated or 3,176.69 11.09 4.13 3,191.91 319.63 1.09 - 320.72
purchased
Assets derecognised or repaid (874.60) (369.06) (91.31) (1,334.97) (1,113.76) (538.87) (33.68) (1,686.31)
Transfers to Stage 2 (30.25) 32.57 (2.32) - (524.07) 535.91 (11.84) -
Changes to contractual cash - - - - - - - -
flows due to modifications not
resulting in derecognition
Amounts written off - - - - - (294.60) (294.60)
closing balance
EIR impact of Service Charges (0.86) 0.03 0.05 (0.78) 0.71 0.12 0.03 0.86
Received and Commission Paid
Gross carrying amount closing 3,708.69 73.66 144.35 3,926.71 1,341.99 592.50 136.92 2,071.41
service charges received
2022-23 2021-22
Particulars
ECL allowance - opening 6.43 2.81 51.35 60.59 20.43 21.72 129.43 171.58
balance
Changes in ECL rates 3.37 33.17 1.64 38.17 (10.08) (18.44) (7.44) (35.96)
New assets originated or 14.37 0.67 1.34 16.39 2.34 0.00 - 2.35
purchased
Assets derecognised or repaid (5.58) (22.41) (35.33) (63.32) (4.46) (2.16) (12.63) (19.24)
Transfers to Stage 1 0.82 (6.49) (3.85) (9.52) 0.58 (0.50) (7.26) (7.18)
Transfers to Stage 2 (0.20) 1.78 (0.90) 0.68 (2.10) 2.57 (4.44) (3.96)
Transfers to Stage 3 (0.14) (5.25) 41.08 35.69 (0.29) (0.40) 64.16 63.48
Impact on year end ECL (0.99) - - (0.99) - - - -
of exposures transferred
between stages during the year
Amounts written off - - - - - - (110.48) (110.48)
ECL allowance - closing 18.09 4.27 55.32 77.68 6.43 2.81 51.35 60.59
balance

Notes

8.1.3 Belstar Microfinance Limited
Credit Quality of Assets


Particulars
Performing
High grade 45,599.87 - - 45,599.87 33,246.69 - - 33,246.69
Standard grade 170.27 - - 170.27 587.50 - - 587.50
Past due but not impaired - 143.43 - 143.43 - 1,118.05 - 1,118.05
Non - performing
Total 45,770.14 317.44 1,144.81 47,232.39 33,834.19 1,800.93 2,145.00 37,780.12
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to
2022-23 2021-22
Particulars
Gross carrying amount 33,834.19 1,800.93 2,145.00 37,780.12 27,699.10 335.41 783.18 28,817.69
opening balance
purchased (net of repayment)
Transfers to Stage 2 (634.69) 637.71 (3.02) - (1,698.50) 1,699.65 (1.15) -
Transfers to Stage 3 (2,203.98) (1,547.66) 3,751.64 - (1,564.59) (55.20) 1,619.79 -
Changes to contractual cash - - - - - - - -
flows due to modifications not
resulting in derecognition
Amounts written off (Refer - - (2,719.46) (2,719.46) - - (228.31) (228.31)
Note 9.1)
Gross carrying amount 45,770.14 317.44 1,144.81 47,232.39 33,834.19 1,800.93 2,145.00 37,780.12
closing balance

Consolidated
Financial
Statements
Notes

2022-23 2021-22
Particulars
ECL allowance - opening 114.09 504.25 1,619.25 2,237.59 264.76 97.77 617.69 980.22
balance
New assets originated or 175.44 - - 175.44 71.13 - - 71.13
purchased
Assets derecognised or repaid (111.81) (92.24) (186.98) (391.03) (126.47) (32.69) (78.74) (237.90)
Impact on year end ECL 3.41 85.56 1,565.52 1,654.49 20.92 443.85 1,187.68 1,652.45
of exposures transferred
between stages during the year
Amounts written off (Refer - - (2,719.46) (2,719.46) - - (228.31) (228.31)
Note 9.1)
ECL allowance - closing 30.77 86.72 839.54 957.03 114.09 504.25 1,619.25 2,237.59
balance

ECL Povision is not created on staff loan as there is no credit risk. Any amount due if not paid is deducted from salary.
8.1.4 Muthoot Homefin (India) Limited

Performing
High grade 9,451.05 - - 9,451.05 8,402.95 - - 8,402.95
Standard grade 310.79 - - 310.79 518.91 - 518.91
Past due but not impaired - 446.72 - 446.72 - 901.17 - 901.17
Non- performing
Individually impaired - - 436.33 436.33 - - 309.21 309.21
Total 9,761.84 690.35 436.33 10,888.52 8,921.86 1,365.48 309.21 10,596.55
Ind AS Adjustment (23.79) (43.80)
Gross Carrying Amount 10,864.73 10,552.75

Notes

A n analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to

2022-23 2021-22
Gross carrying amount - opening 8,921.86 1,365.48 309.21 10,596.55 12,319.18 1,102.95 680.94 14,103.07
balance
New assets originated or purchased/ 2,288.26 - 2,288.26 1,435.87 32.88 - 1,468.75
further increase in existing assets
Moratorium and Restructuring - - - - - - -
Assets derecognised or repaid (1,808.94) (164.58) (22.77) (1,996.29) (4,144.23) (95.53) (38.00) (4,277.76)
Gross carrying amount - closing 9,761.84 690.35 436.33 10,888.52 8,921.86 1,365.48 309.21 10,596.55
balance
Ind AS Adjustment (23.79) (43.80)
Gross Carrying Amount 10,864.73 10,552.75
2022-23 2021-22
ECL allowance - opening balance 36.37 43.13 177.62 257.12 37.46 16.23 207 260.69
ECL Remeasurements due to changes in (0.41) (2.52) (20.02) (22.95) (0.87) (6.42) (3.00) (10.29)
EAD / assumptions
Transfers to Stage 1 (0.50) (7.69) (81.96) (90.15) 0.09 (24.65) (2.53) (27.09)
Transfers to Stage 2 0.14 2.77 (10.52) (7.61) (0.23) 78.03 (3.61) 74.19
Transfers to Stage 3 0.06 (2.90) 224.24 221.40 (0.08) (20.06) 34.89 14.75
ECL allowance - closing balance 35.66 32.79 289.36 357.81 36.37 43.13 177.62 257.12

Consolidated
Financial
Statements
Notes

8.2 Belstar Microfinance Limited
During the year, Belstar Microfinance Limited (BML) has sold financial assets being stressed loan receivables (>180
days past due) having a gross carrying amount of ₹2,500.96 million to an Asset Reconstruction Company (“ARC”) for a
consideration of ₹830.00 million. The net carrying amount of these loan receivables as on the effective date of transfer
was ₹636.94 million (net of impairment allowance of ₹1,864.02 million). In accordance with Ind AS 109, BML has written
off ₹1670.96 million (i.e ₹2,500.96 million less ₹830.00 million) against the corresponding impairment allowance, being
the portion of gross carrying amount in respect of which any reasonable expectation of recovery stands extinguished
with the above mentioned sale transaction. Further, the residual excess provision carried under impairment allowance
Rs 193.06 million has been written back during the year with corresponding impact in Note No. 31.
As per the agreed terms, BML has subscribed to the Security Receipts (“SRs”) issued by the ARC trust amounting to
₹721.70 million, which is classified under Fair Value through Profit or Loss Account. Since the transaction had
consummated on 28th March, 2023, obtaining recovery ratings and declaration of the Net Asset Value (NAV) by the ARC
Trust would commence from the half year ended September 30, 2023 only. As at March 31, 2023, BML has also applied
the principles prescribed under the Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions,
2021 dated September 24, 2021 in determining the fair value of the SR’s and accordingly, a loss on fair value changes
considering the notional provisioning rate applicable if these loans had continued in the books of BML amounting to
₹193.06 million has been recognised against the face value of these SRs, as disclosed under Note No. 27.
The gross and net carrying amounts stated above does not include unrealised interest on these NPA loans recognised by
BML amounting to ₹162.36 million. Upon completion of the sale transaction, the same has also been de-recognised with
corresponding impact in Note No. 26.
Note 9: Investments
At Fair value
Through Total
profit or loss
i) Mutual funds - - 45.69 - 45.69 45.69
ii) Government securities 1,874.62 - - - - 1,874.62
iii) Other approved securities 179.56 - - - - 179.56
iv) Debt securities 298.21 - - - - 298.21
v) Equity instruments - 1,875.66 0.03 - 1,875.69 1,875.69
vi) Others
Investment in reverse re-purchase against treasury 610.47 - - - - 610.47
bills and bonds
Investment in Security Receipts - - 765.95 765.95 765.95
Total Gross (A) 2,962.86 1,875.66 811.67 - 2,687.33 5,650.19
i) Investments outside India 890.24 452.03 - - 452.03 1,342.27
ii) Investments in India 2,072.62 1,423.63 811.67 - 2,235.30 4,307.92
Total Gross (B) 2,962.86 1,875.66 811.67 - 2,687.33 5,650.19
Less : Allowance for impairment loss ( C) - - (193.07) - (193.07) (193.07)
Total - Net D = (A) - (C ) 2,962.86 1,875.66 618.60 - 2,494.26 5,457.12

Notes

At Fair value
Through Total
profit or loss
i) Mutual funds - - 952.90 - 952.90 952.90
ii) Government securities 1,876.06 - - - - 1,876.06
iii) Debt securities 10.00 - - - - 10.00
iv) Equity instruments - 1,960.47 0.02 - 1,960.49 1,960.49
v) Others
Investment in reverse re-purchase against treasury 254.35 - - - - 254.35
bills and bonds
Investment in Security Receipts - - 186.27 - 186.27 186.27
Total Gross (A) 2,140.41 1,960.47 1,139.19 - 3,099.66 5,240.06
i) Investments outside India 254.35 630.50 - - 630.50 884.85
ii) Investments in India 1,886.06 1,329.97 1,139.19 - 2,469.16 4,355.21
Total Gross (B) 2,140.41 1,960.47 1,139.19 - 3,099.66 5,240.06
Less : Allowance for impairment loss ( C) - - (7.00) - (7.00) (7.00)
Total - Net D = (A) - (C ) 2,140.41 1,960.47 1,132.19 - 3,092.66 5,233.06
9.1 Details of investments are as follows :

Mutual funds
Particulars
Units* Amount Units* Amount
SBI Crisil IBX SDL index Fund 4,404,333.12 45.69
Aditya Birla Sunlife Mutual fund - - 174,657.00 200.80
SBI Mutual fund - - 58,105.00 201.14
DSP Mutual fund - - 87,872.00 100.03
ICICI Prudential Mutual fund - - 437,092.00 50.09
L&T Mutual Fund - - 60,319.00 100.03
Tata Mutual Fund - - 89,199.00 100.03
Union Mutual Fund - - 179,389.00 200.78
Total 45.69 952.90
Government securities
Particulars
Gujarat State Development Loan - - 50,000 5.12
Kerala State Development Loan 100,000.00 10.09 100,000 10.08
Karnataka State Development Loan 1,490,300.00 151.55 1,540,300 156.66
Tamilnadu State Development Loan 100,000.00 10.27 100,000 10.27
Punjab State Development Loan 2,000,000.00 203.92 2,000,000.00 203.89
Maharashtra State Development Loan 4,000,000.00 393.76 4,000,000.00 392.18
Central Government Securities 11,500,000.00 1,105.03 11,500,000.00 1,097.86
Total 1,874.62 1,876.06

Consolidated
Financial
Statements
Notes

Other approved securities
Particulars
Investment in Unit Trust 23,910,916.21 179.56 - -
Total 179.56 -
Debt securities
Particulars
MLD - Shriram City Union Finance Limited 19.00 138.00 - -
NCD - Muthoot Fincorp Limited 10,000.00 60.00 10,000.00 10.00
Investment in Commercial Paper 1.00 100.21 - -
Total 298.21 10.00
Equity instruments
Particulars
Quoted
Union Bank of India 454 0.03 454 0.02
Nabil Bank Limited, Nepal (Refer Note 9.2) 1,198,531 452.03 1,011,418 630.50
Subtotal 452.06 630.52
Unquoted
Muthoot Forex Limited 1,970,000 153.76 1,970,000 139.00
Muthoot Securities Limited 2,700,000 238.79 2,700,000 192.92
ESAF Small Finance Bank Limited 18,717,244 772.65 18,717,244 750.37
CRIF Highmark Credit Information Service Private 1,926,531 258.43 1,926,531 247.68
Limited
Subtotal 1423.63 1,329.97
Total 1875.69 1,960.49
*The number of units are in whole numbers
9.2 : T he Company holds 1,198,531 equity shares of Nepalese Rupee 100/- each in Nabil Bank Limited, Nepal as at March 31,
2023. The management does not have significant influence over the entity as specified in Ind AS-28 - Investments in
Associates and Joint Ventures; and has elected to recognise and measure the investment at fair value through OCI as per
the requirements of Ind AS 109 – Financial Instruments.

Notes

Note 10: Other financial assets
As at As at
Particulars
March 31, 2023 March 31, 2022
Security deposits 1,054.44 972.49
Interest accrued on fixed deposits with banks and investment in TREPS (Refer Note 5.3) 64.36 139.18
Interest accrued on Investments 6.64 -
Interest only strip 1,047.19 427.58
Receivable towards assignment transactions 907.34 963.34
Interest accrued on CG Securities on purchase - 5.92
Interest accrued on State Securities on purchase - 0.91
Other financial assets 373.03 297.86
Total 3,453.00 2,807.28
Note 11: Investment property

As at As at
Particulars
March 31, 2023 March 31, 2022
Gross carrying amount
As at April 01, 2022/ April 01, 2021 95.49 139.45
Additions during the year 0.17 -
Asset transferred to Investment property - -
Disposal during the year (8.81) (2.31)
Expense capitalised during the year - -
Exchange differences (2.70) (41.65)
As at March 31, 2023/ March 31, 2022 84.15 95.49
Accumulated depreciation
As at April 01, 2022/ April 01, 2021 2.08 -
Charge for the year 0.30 2.96
Disposal (0.21) -
Impairment for the year - -
As at March 31, 2023/ March 31, 2022 2.13 2.08
Net carrying amount 82.02 93.41
The fair value of investment property is ₹119.82 millions (31 March 2022: ₹137.75 millions) as determined by valuations
carried out by independent valuer.
Amounts recognised in Statement of Profit and Loss for Investment property

As at As at
Particulars
March 31, 2023 March 31, 2022
Rental income from investment property 0.01 -
Direct operating expenses arising from investment property that generated rental income during - -
the year
Direct operating expenses arising from investment property that did not generate rental income - -
during the year
Profit from investment property before depreciation 0.01 -
Depreciation charge for the year 0.30 2.96
Profit/ (loss) from investment property after depreciation (0.29) (2.96)

Consolidated
Financial
Statements
Notes

Note 12: Property, plant and equipment
Capital
Leasehold Furniture Plant and Wind
Land Buildings Computer ** Vehicles Total work-in-
improvements and Fixtures Equipment* Mill
progress
As at April 01, 2021 691.45 67.17 658.43 882.02 1,557.23 521.38 128.12 23.35 4,529.16 384.77
Additions 150.74 4.73 38.04 220.82 324.86 114.68 2.60 - 856.47 138.67
Disposals - (12.69) (6.07) (1.78) (15.40) (0.03) (0.79) - (36.76) -
Exchange differences - - - (3.69) (25.73) (6.39) (6.63) - (42.44) -
As at March 31, 2022 842.19 59.21 690.40 1,097.37 1,840.96 629.64 123.30 23.35 5,306.42 523.44
Additions - 18.62 325.24 220.98 435.04 147.01 0.66 - 1,147.55 217.79
Disposals - (18.26) - (4.41) (20.04) (0.05) (3.00) - (45.76) (66.96)
As at March 31, 2023 842.19 59.57 1,015.64 1,313.64 2,253.93 775.99 120.46 23.35 6,404.77 674.27
Accumulated
depreciation
As at April 01, 2021 - 33.21 205.39 399.74 843.11 395.23 70.54 6.82 1,954.04 -
Charge for the year - 8.19 44.51 170.11 255.97 90.33 17.40 1.37 587.88 -
Disposals - (6.97) (1.28) (0.98) (11.38) (0.01) (0.65) - (21.27) -
As at March 31, 2022 - 34.43 248.62 566.15 1,069.66 480.84 81.61 8.19 2,489.50 -
Charge for the year - 6.32 50.25 185.16 307.53 117.52 12.49 1.25 680.52 -
Disposals - (13.49) - (2.75) (17.11) (0.03) (2.53) - (35.91) -
As at March 31, 2023 - 27.26 298.87 748.45 1,359.02 598.14 91.22 9.44 3,132.40 -
Net Block
As at March 31, 2022 842.19 24.78 441.78 531.22 771.30 148.80 41.69 15.16 2,816.92 523.44
As at March 31, 2023 842.19 32.31 716.77 565.19 894.91 177.85 29.24 13.91 3,272.37 674.27
*Includes Office equipment
**Includes Server and networking
The Group has not revalued its Property, Plant and equipment (including Right-of-Use asset) during the year.
12.1 Capital work-in-progress (CWIP) aging schedule

As at March 31,2023
As at March 31,2022

Notes

Note 13: Right to use assets
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening carrying value 147.80 170.01
Addition during the year 68.72 77.20
Deductions (0.47) (13.72)
Exchange Gain/(Loss) (2.27) (17.44)
Depreciation for the year (71.55) (68.25)
Closing Carrying value 142.23 147.80
Note 14: Other Intangible Assets

Intangible
Computer
Total asset under
software
developments

As at April 01, 2021 296.64 296.64 0.55
Additions 17.39 17.39 0.49
Disposal (0.80) (0.80) (0.55)
Exchange differences (6.10) (6.10) -
As at March 31, 2022 307.13 307.13 0.49
Additions 31.84 31.84 0.44
Disposal (5.40) (5.40) (0.49)
As at March 31, 2023 333.09 333.09 0.44
Accumulated amortisation
As at April 01, 2021 210.33 210.33 -
Charge for the year 40.94 40.94 -
Disposal (0.68) (0.68) -
Impairment for the year - - -
As at March 31, 2022 248.39 248.39 -
Charge for the year 29.24 29.24 -
Disposal (3.36) (3.36) -
Impairment for the year - - -
As at March 31, 2023 274.24 274.24 -
Net Block
As at March 31, 2022 58.74 58.74 0.49
As at March 31, 2023 58.85 58.85 0.44

Consolidated
Financial
Statements
Notes

14.1 Intangible assets under development aging schedule
As at March 31,2023
Particulars Amount in intangible assets under development for a period of
Projects in progress 0.44 - - - 0.44
As at March 31,2022
Particulars Amount in intangible assets under development for a period of
Projects in progress 0.49 - - - 0.49
Note 15: Other Non-financial assets

As at As at
Particulars
March 31, 2023 March 31, 2022
Balances with government authorities 120.33 104.96
Prepaid expenses 184.31 134.47
Capital advances 130.60 48.84
Advance to supplier 51.09 58.53
Stock of gold 4.25 6.71
Balances receivable from government authorities 173.70 288.65
Insurance claim receivable 17.43 10.83
CSR Pre-spent account 7.80 -
Other Receivables 244.50 229.58
Total 934.01 882.57
Note 16: Payables

As at As at
Particulars
March 31, 2023 March 31, 2022
Trade Payables
(i) total outstanding dues of micro enterprises and small enterprises 7.20 -
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises 1,334.01 1,204.46
Total 1,341.21 1,204.46
As at As at
Particulars
March 31, 2023 March 31, 2022
Other Payables
(ii) total outstanding dues of creditors other than micro enterprises and small enterprises 817.29 367.92
Total 817.29 367.92

Notes

16.1 Trade Payables Ageing Schedule
As at March 31,2023
(i) MSME 7.20 - - - 7.20
(ii) Others 1,131.97 48.42 61.47 92.15 1,334.01
As at March 31,2022
(i) MSME - - - - -
(ii) Others 1,012.32 92.12 30.65 69.37 1,204.46
Note 17: Debt Securities

Designated
Particulars At fair value
At amortised at fair value
through profit Total
cost through profit
or loss
or loss
Secured Non-Convertible Debentures* Refer note 17.1 & 17.2 1,390.73 - - 1,390.73
(Secured by mortgage of immovable property and paripassu floating
charge on current assets, book debts and Loans & advances and
Secured Non-Convertible Debentures -Listed ** 128,879.06 - - 128,879.06
Refer note 17.3 , 17.4, 17.5, 17.6 & 17.7
(Secured by mortgage of immovable property and pari passu
floating charge on current assets, book debts , loans & advances and
receivables including gold loan receivables/Secured by pari passu
Principle Protected Market Linked Secured Non Convertable 8,201.00 - - 8,201.00
Debentures- Listed** Refer note 17.8
Secured Redeemable Non-Convertible Debentures - Listed & 7,575.00 - - 7,575.00
Separately Transferable Redeemable Principal Parts ** Refer
note 17.9
(Secured by pari passu floating charge on current assets, book
debts, loans & advances and receivables including gold loan
receivables)
Total (A) 146,045.79 - - 146,045.79
Debt securities in India 145,499.56 - - 145,499.56
Debt securities outside India 546.23 - - 546.23
Total (B) 146,045.79 - - 146,045.79

Consolidated
Financial
Statements
Notes

* Exclude unpaid (unclaimed) matured debentures of ₹199.90 million shown as part of Other Financial Liabilities in Note 21.
**Includes EIR impact of transaction cost, premium/discount on issue of non-convertible debentures; excludes unpaid (unclaimed) matured listed
debentures of ₹69.84 millions (March 31,2022: ₹69.00 millions) shown as a part of Other financial liabilities in Note 21.
**The amortised cost of Debt Securities as at March 31, 2023 in Note 17 above does not include interest accrued but not due aggregating to ₹7,874.88
millions disclosed separately under Other financial liabilities in Note 21.

Designated
Particulars At fair value
At amortised at fair value
through profit Total
cost through profit
or loss
or loss
Secured Non-Convertible Debentures* Refer note 17.1& 17.2 2,727.46 - - 2,727.46
Secured Non-Convertible Debentures -Listed ** Refer note 17.3 , 120,141.24 - - 120,141.24
17.4, 17.5, 17.6 & 17.7
(Secured by mortgage of immovable property and pari passu
receivables including gold loan receivables/Secured by pari passu
Principle Protected Market Linked Secured Non Convertable 8,871.65 - - 8,871.65
Debentures-Listed** Refer note 17.8
Total (A) 131,740.35 - - 131,740.35
Debt securities in India 131,207.45 - - 131,207.45
Debt securities outside India 532.90 - - 532.90
Total (B) 131,740.35 - - 131,740.35
* Exclude unpaid (unclaimed) matured debentures of ₹48.82 million shown as part of Other Financial Liabilities in Note 21.
**Includes EIR impact of transaction cost; excludes unpaid (unclaimed) matured listed debentures of ₹69.00 millions shown as a part of Other
financial liabilities in Note 21.
**The amortised cost of Debt Securities as at March 31, 2022 in Note 17 above does not include interest accrued but not due aggregating to ₹9,340.72
millions disclosed separately under Other financial liabilities in Note 21.

Notes

17.1 Secured Redeemable Non-Convertible Debentures
The Company had privately placed Secured Redeemable Non- Convertible Debentures for a maturity period of 60-120
months with a principal amount outstanding of ₹1,044.40 millions (March 31,2022: ₹2,243.38 millions)
Amount Amount Redemption Period

Interest Rate
Series Date of allotment As at As at from the date of %
March 31, 2023 March 31, 2022 allotment
CT 14.03.2014-31.03.2014 2.50 2.50 120 months 10.50-12.50
CS 27.02.2014-14.03.2014 5.00 10.00 120 months 10.50-12.50
CR 07.02.2014-27.02.2014 2.50 10.00 120 months 10.50-12.50
CQ 04.02.2014-07.02.2014 3.00 10.50 120 months 10.50-12.50
CP 20.01.2014-04.02.2014 43.00 45.50 120 months 10.50-12.50
CO 10.01.2014-20.01.2014 96.50 105.00 120 months 10.50-12.50
CN 03.01.2014-10.01.2014 56.00 63.50 120 months 10.50-12.50
CM 24.12.2013-03.01.2014 27.50 32.50 120 months 10.50-12.50
CL 05.12.2013-24.12.2013 - 5.50 120 months 10.50-12.50
CK 18.11.2013-05.12.2013 - 5.00 120 months 10.50-12.50
CJ 29.10.2013-18.11.2013 5.00 7.50 120 months 10.50-12.50
CI 09.10.2013-29.10.2013 7.50 12.50 120 months 10.50-12.50
CH 27.09.2013 - 09.10.2013 2.50 7.50 120 months 10.50-12.50
CG 06.09.2013 - 27.09.2013 2.50 7.50 120 months 10.50-12.50
CF 31.08.2013 - 06.09.2013 2.50 2.50 120 months 10.50-12.50
CE 12.08.2013 - 31.08.2013 5.00 15.50 120 months 10.50-12.50
CD 31.07.2013 - 10.08.2013 - 2.50 120 months 10.50-12.50
CC 08.07.2013 - 31.07.2013 2.50 12.50 120 months 10.50-12.50
CB 24.06.2013 - 07.07.2013 173.10 337.06 120 months 10.50-12.50
CA 18.04.2013 - 23.06.2013 327.70 634.07 120 months 10.50-12.50
BZ 01.03.2013 - 17.04.2013 179.48 471.16 120 months 10.50-12.50
BY 18.01.2013 - 28.02.2013 65.51 394.26 120 months 10.50-12.50
BX 26.11.2012 - 17.01.2013 4.25 4.72 60 months 10.50-12.50
BW 01.10.2012 - 25.11.2012 6.52 7.37 60 months 11.50-12.50
BV 17.08.2012 - 30.09.2012 3.80 3.89 60 months 11.50-12.50
BU 01.07.2012 - 16.08.2012 1.67 2.24 60 months 11.50-12.50
BT 21.05.2012 - 30.06.2012 1.03 1.16 60 months 11.50-12.50
BS 01.05.2012 - 20.05.2012 1.47 2.14 60 months 11.50-12.50
BR 01.03.2012 - 30.04.2012 5.65 6.82 60 months 11.50-12.50
BQ 23.01.2012 - 29.02.2012 2.00 2.16 60 months 11.50-12.50
BP 01.12.2011 - 22.01.2012 2.13 2.75 60 months 11.50-12.50
BO 19.09.2011 – 30.11.2011 2.80 3.09 60 months 11.00-12.00
BN 01.07.2011 – 18.09.2011 2.49 2.88 60 months 11.00-12.00
BM 01.04.2011 – 30.06.2011 1.30 2.13 60 months 11.00-12.00
BL 01.01.2011 - 31.03.2011 - 2.83 60 months 10.00-11.50

Consolidated
Financial
Statements
Notes

Amount Amount Redemption Period
Interest Rate
Series Date of allotment As at As at from the date of %
March 31, 2023 March 31, 2022 allotment
BK 01.10.2010 - 31.12.2010 - 1.51 60 months 9.50-11.50

BJ 01.07.2010 – 30.09.2010 - 2.56 60 months 9.50-11.00
BI 01.04.2010 - 30.06.2010 - 0.57 60 months 9.00-10.50
BH 01.01.2010 - 31.03.2010 - 0.01 60 months 9.00-10.50
Sub Total 1,044.40 2,243.38
Less: Unpaid (Unclaimed) 199.90 48.82
matured debentures shown
as a part of Other financial
liabilities
Total 844.50 2,194.56
17.2 Secured Reedemable Non-Convertible Debentures
Asia Assets Finance

Type A 05.10.2020 120.40 123.06 3 Years 10.28%
Type B 05.10.2020 154.19 144.16 3 Years 10.76%
Debenture -Type A2 20.08.2021 26.42 27.04 3 Years 8.76%
Debenture -Type B2 20.08.2021 84.23 85.85 3 Years 11.89%
Debenture - Type C 20.08.2021 0.41 0.42 3 Years 9.26%
Debenture - Type D 20.08.2021 160.58 152.37 3 Years 9.43%
Total 546.23 532.90

issue by the Company stood at ₹72,818.34 millions (March 31,2022: ₹71,761.40 millions).
PL 26 05.05.2022 237.24 - 120 Months 7.50-8.00
PL 25 20.04.2021 2,290.47 2,290.47 120 Months 8.00-8.25
PL 22 27.12.2019 445.96 445.96 90 Months 9.67
PL 21 01.11.2019 432.00 432.00 90 Months 9.67
PL 20 14.06.2019 322.43 322.43 90 Months 9.67
PL 27 23.06.2022 356.03 - 84 Months 7.50-8.00
PL 26 05.05.2022 86.18 - 84 Months 7.25-7.75
PL 30 10.03.2023 740.73 - 61 Months 7.85-8.60
PL 29 23.12.2022 643.74 - 60 Months 7.50-8.25
PL 28 03.11.2022 997.52 - 60 Months 7.25-8.00
PL 27 23.06.2022 666.67 - 60 Months 7.00-7.75
PL 26 05.05.2022 1,184.15 - 60 Months 6.75-7.50

Notes

PL 25 20.04.2021 4,637.49 4,637.49 60 Months 7.35-7.85

PL 24 11.01.2021 1,433.72 1,433.72 60 Months 7.10-7.75
PL 23 05.11.2020 1,425.54 1,425.54 60 Months 7.50-8.00
PL 22 27.12.2019 1,488.68 1,488.68 60 Months 9.75-10.00
PL 21 01.11.2019 1,574.40 1,574.40 60 Months 9.75-10.00
PL 20 14.06.2019 3,061.02 3,061.02 60 Months 9.75-10.00
PL 19 20.03.2019 2,491.39 2,491.39 60 Months 9.75-10.00
PL 18 19.04.2018 9,839.02 9,839.02 60 Months 8.75-9.00
PL 17 24.04.2017 - 2,517.38 60 Months 8.75-9.00
PL 25 20.04.2021 6,223.12 6,223.12 38 Months 6.85-7.35
PL 24 11.01.2021 1,496.14 1,496.14 38 Months 6.75-7.40
PL 23 05.11.2020 18,574.46 18,574.46 38 Months 7.15-7.65
PL 22 27.12.2019 - 2,125.49 38 Months 9.50-9.75
PL 21 01.11.2019 - 1,327.46 38 Months 9.50-9.75
PL 20 14.06.2019 - 3,157.25 38 Months 9.50-9.75
PL 19 20.03.2019 - 3,049.07 38 Months 9.50-9.75
PL 30 10.03.2023 1,495.71 - 37 Months 7.75-8.50
PL 29 23.12.2022 725.42 - 36 Months 7.35-8.10
PL 28 03.11.2022 1,270.23 - 36 Months 7.00-7.75
PL 27 23.06.2022 1,629.13 - 36 Months 6.75-7.50
PL 26 05.05.2022 2,269.51 - 36 Months 6.50-7.25
PL 25 20.04.2021 3,848.91 3,848.91 26 Months 6.60-6.85
PL 30 10.03.2023 340.06 - 25 Months 7.75-8.25
PL 29 23.12.2022 181.85 - 24 Months 7.25-7.75
PL 28 03.11.2022 409.42 - 24 Months 7.00-7.50
Sub Total 72,818.34 71,761.40
Total 72,658.40 71,516.53

The principal amount outstanding of Secured Redeemable Non-Convertible Listed Debentures privately placed by the
Company stood at ₹48,100.00 millions (March 31,2022: ₹42,400.00 millions)

18 31.05.2021 2,150.00 2,150.00 9 year & 364 days 7.90
9 18.06.2020 1,250.00 1,250.00 5 year 9.50
25 24.02.2023 1,600.00 - 3year+90days 8.65
23 22.12.2022 1,950.00 - 3year+15days 8.30
22 16.09.2022 2,400.00 - 3year+14days 7.75
24 19.01.2023 10,000.00 - 3year+10days 8.50
20 17.02.2022 5,000.00 5,000.00 3 year & 10 days 6.87

Consolidated
Financial
Statements
Notes

19 26.08.2021 4,000.00 4,000.00 3 year 8.25

16 16.10.2020 4,600.00 4,600.00 3 year 7.50
12 15.07.2020 1,000.00 1,000.00 3 year 8.40
8 02.06.2020 5,000.00 5,000.00 3 year 9.05
25 24.02.2023 4,400.00 - 2year+182days 8.60
10 25.06.2020 - 3,650.00 2 year & 9 days 8.50
14 25.09.2020 - 4,500.00 2 year & 61 days 7.15
17 09.03.2021 1,750.00 1,750.00 2 year & 49 days 6.65
7 14.05.2020 1,000.00 1,000.00 2 year & 363 8.90
days
11 07.07.2020 - 6,500.00 2 year & 32 days 8.30
21 24.02.2022 2,000.00 2,000.00 1 year & 364 days 6.17
Sub Total 48,100.00 42,400.00
(Add)/Less: EIR impact (4.73) 3.86
Total 48,104.73 42,396.14
17.5 Secured Reedemable Non-Convertible Debentures

The principal amount of outstanding Rated Secured Reedemable Non-Convertible Debentures privately placed by Belstar
Micro Finance Limited stood at ₹6,250.00 millions (March 31,2022: ₹3,826.78 millions)
Amount Amount
Date of Interest
Particulars As at As at redemption rate %
March 31, 2023 March 31, 2022
9.5% Senior, Secured, Redeemable, Rated, Listed, Taxable, - 400.00 13-May-22 9.50
9.35% Senior, Secured, Redeemable, Rated, Listed, Taxable, - 62.50 03-Jun-22 9.35
10.5% Senior, Secured, Redeemable, Rated, Listed, Taxable, - 114.29 15-Sep-22 10.50
10.58% Senior, Secured, Redeemable, Rated, Listed, Taxable, 500.00 500.00 21-Apr-23 10.58
11% Senior, Secured, Redeemable, Rated, Listed, Taxable, Non- 250.00 250.00 16-May-23 11.00
Convertible Debentures
11% Senior, Secured, Redeemable, Rated, Listed, Taxable, Non- 200.00 200.00 17-Jun-23 11.00
11% Senior, Secured, Redeemable, Rated, Listed, Taxable, Non- 700.00 700.00 30-Jun-23 11.00
11% Senior, Secured, Redeemable, Rated, Listed, Taxable, Non- 350.00 350.00 07-Jul-23 11.00
8.50% Senior, Secured, Redeemable, Rated, Listed, Taxable, 1,250.00 1,250.00 28-Feb-24 8.50
9.35%Senior,Secured,Redeemable,Rated,Listed,Taxable,Non- 3,000.00 - 21-Aug-24 9.35
Sub Total 6,250.00 3,826.79
Total 6,215.71 3,807.89

Notes

Issue by Muthoot Homefin (India) Limited (MHIL) stood at ₹1,150.20 millions (March 31,2022: ₹2,170.68 million)

II 13.05.2019 - 356.83 38 Months 9.00-10.00
III 13.05.2019 457.97 457.96 60 Months 9.00-10.00
V 13.05.2019 - 290.95 38 Months 9.00-10.00
VI 13.05.2019 420.60 420.59 60 Months 9.00-10.00
VIII 13.05.2019 - 372.70 38 Months NA
IX 13.05.2019 89.78 89.78 60 Months NA
X 13.05.2019 181.87 181.87 90 Months NA
Total 1,150.22 2,170.68

The principal amount of outstanding Secured Redeemable Non-Convertible Listed Debentures privately placed by
Muthoot Homefin (India) Limited stood at ₹750 millions (March 31, 2022: 250 millions).

Series Date of allotment As at As at period from the Interest Rate %
I 17.06.2020 250.00 250.00 36 Months 8.00-9.00
II 20.09.2022 500.00 - 120 Months 8.00-9.00
Total 750.00 250.00
17.8 Principal Protected Market Linked Secured Redeemable Non-Convertible Debentures - Private
Placement & Listed
The principal amount of outstanding Principal Protected Market Linked Secured Redeemable Non-Convertible Listed
Debentures privately placed by the Company stood at ₹8,201.00 millions (March 31,2022: ₹8,873.00 millions )

Series Date of allotment As at March 31, As at March 31, Period from the Interest Rate %
2023 2022 date of allotment
7 11.01.2023 1,033.00 - 1155 Days 8.14
6 20.09.2022 5,000.00 - 1157 Days 7.60
5 24.03.2022 2,168.00 2,168.00 3 Year & 60 Days 7.00
4 07.09.2020 - 2,000.00 760 days 7.15
3 24.07.2020 - 1,000.00 761 days 7.75
2 09.07.2020 - 2,350.00 729 days 8.25
1 12.06.2020 - 1,355.00 728 days 8.75
Sub Total 8,201.00 8,873.00
Less: EIR impact - 1.35
of transaction cost
Total 8,201.00 8,871.65

Consolidated
Financial
Statements
Notes

17.9 Secured Redeemable Non-Convertible Debentures - Private Placement & Listed & Separately
Transferable Redeemable Principal Parts (STRPP)
The principal amount of outstanding STRPP Secured Redeemable Non-Convertible Listed Debentures privately placed by
the Company stood at ₹7,575.00 millions (March 31,2022: NIL)
Paid-up First & Final Amount Amount Redemption

Face value Date of Interest
Series value per Call Amount per As at As at Period from the
per STRPP allotment Rate %
STRPP STRPP & Date March 31, 2023 March 31, 2022 date of allotment
STRPP - 1A 100,000.00 100,000.00 NA 15.03.2023 5,000.00 - 2year+9months 8.65
STRPP - 1B 100,000.00 1,000.00 99,000 on 15.03.2023 50.00 - 4years, Put 8.65
December 15, option on
2025 at the December 15,
option of NCD 2025
Holder
STRPP - 2A 100,000.00 100,000.00 NA 23.03.2023 2,500.00 - 3years 8.65
STRPP - 2B 100,000.00 1,000.00 99,000 on 23.03.2023 25.00 - 4year+184days, 8.65
March 23, 2026 Put option on
at the option of March 23, 2026
NCD Holder
Sub Total 7,575.00 -
Less: EIR - -
impact
Total 7,575.00 -
Note 18: Borrowings (other than debt securities)

Designated
Particulars At At fair value
at fair value
amortised through Total
through
cost profit or loss
profit or loss
(a) Term loan
(i) from banks*
Term Loans (Secured by paripassu floating charge on current assets, book 159,381.46 - - 159,381.46
debts, Loans & advances and receivables including gold loan receivables)
(Terms of Repayment: ₹857.14 millions in 2 half yearly installments and
₹70,763.33 millions in 1-2-3-4 quarterly installments during
FY 2023-24, ₹857.14 millions in 2 half yearly installments, ₹52,849.53
millions in 1-2-3-4 quarterly installments and ₹2,000.00 millions in bullet
payment during FY 2024-25, ₹21,742.57 millions in 1-2-3-4 quarterly
installments during FY 2025-26, ₹7,169.96 millions in 1-3-4 quarterly
installments during FY 2026-27, ₹3,216.01 millions in 1-3-4 quarterly
installments during FY 2027-28. Rate of Interest: 7.50-9.55 % p.a.)
Term Loan (Secured by way of specific charge on receivables created out 40,085.32 - - 40,085.32
of the proceeds of the loan)
(Terms of Repayment: ₹18,978.85 millions in 12 monthly installment,
₹21,106.47 millions in 1-2-3-4 quartely installment. Rate of Interest 8.00
% - 12.00 % p.a)
Term Loan (Secured by paripassu floating charge on housing loan 2,819.39 - - 2,819.39
receivables, credit and current assets)

Notes

Designated
at fair value
through
cost profit or loss
profit or loss
(Terms of Repayment: ₹169.05 millions in 12 monthly installments,
₹189.08 millions in 1-2-3-4 quarterly installments,₹417.07 millions in
2 half yearly installments & ₹166.67 millions in yearly installments
during FY 2023-24, ₹169.05 millions in 12 monthly installments, ₹189.02
millions in 1-2-3-4 quarterly installments,₹313.00 millions in 2 half yearly
installments & ₹166.67 millions in yearly installments during FY 2024-25,
₹169.05 millions in 12 monthly installments, ₹35.71 millions in 1-2-3-4
quarterly installments,₹249.23 millions in 2 half yearly installments
& ₹166.20 millions in yearly installments during FY 2025-26, ₹169.05
millions in 12 monthly installments,₹83.33 millions in 2 half yearly
installments during FY 2026-27, and ₹84.52 millions in 12 monthly
installments,₹82.70 millions in 2 half yearly installments during FY 2027-
28. Rate of Interest : 8.00 % - 9.00% p.a)
Term Loan (Secured by promissory notes, loans, lease and hire purchase 293.52 - - 293.52
receivables, Mortgage bond over loan recoverable consist of business loan,
corporate loan and mortgage loan)
(Terms of Repayment: ₹133.13 millions in 12 monthly installments during
FY 2023-24, ₹124.36 millions in 12 monthly installments during FY 2024-
25 and ₹36.03 millions in 12 monthly installments during FY 2025-26 .
Rate of interest 24.90%)
(Terms of Repayment: ₹3.90 millions during FY 2023-24 in 6-8-12
monthly installments, ₹1.48 millions during FY 2024-25 in 7 monthly
installments. Rate of Interest: 8.90-9.90% p.a.).
Term loan (Secured by pari passu floating charge on current assets, book 1,749.57 - - 1,749.57
(Terms of Repayment: ₹218.75 millions in 1 quarterly installment during
FY 2023-24, ₹875 millions in 4 quarterly installments during FY 2024-25,
₹656.25 millions in 3 quarterly installments during FY 2025-26. Rate of
Interest: 8.25% p.a.)
Term Loan (Secured by specific charge on receivables created out of the 309.47 - - 309.47
proceeds of the loan)
(Terms of Repayment: ₹193.25 millions in 12 monthly installment, ₹116.22
millions in 1-2-3-4 quartely installment. Rate of Interest 8.00 % -12.00 % p.a)
(iii) Pass through certificates payable - - - -
(iv) From National Housing Bank 1,882.31 - - 1,882.31
(Terms of Repayment : for FY 2023-24, ₹197.46 millions in quarterly
installments, for FY 2024-25, ₹263.26 millions in quarterly installments
for FY 2025-26, ₹263.26 millions in quarterly installments, for FY 2026-
27, ₹263.26 millions in quarterly installments and ₹895.09 millions
payable in 38 installments in 5 - 10 years. Rate of interest 7.00 % - 8.00 %)
(Terms of Repayment: Repayable on demand- Rate of Interest: 8% p.a,)

Consolidated
Financial
Statements
Notes

Designated
at fair value
through
cost profit or loss
profit or loss
(c) Securitised Loans 1,220.27 - - 1,220.27
(Secured by lease and hire purchase assets and receivables)
FY 2023-24, ₹438.25 millions in 12 monthly installments during FY 2024-25 .
(d) Loans repayable on demand
(i) from banks *
Overdraft against Deposit with Banks (Secured by a lien on Fixed Deposit 365.20 - - 365.20
with Banks)
Cash Credit/ Short term loan (Secured by paripassu floating charge on 133,006.60 - - 133,006.60
current assets, book debts, Loans & advances and receivables including
gold loan receivables)
(ii) f rom financial institutions *
Short term loan (Secured by paripassu floating charge on current assets, 1,999.51 - - 1,999.51
book debts, Loans & advances and receivables including gold loan
receivables)
(e) External Commercial Borrowings -
(i) Senior Secured Notes - US Dollar denominated * 45,170.78 - - 45,170.78
(Secured by paripassu floating charge on current assets, book debts,
Loans & advances and receivables including gold loan receivables)
(Terms of Repayment: ₹45,193.50 millions (USD 550 million repayable on
02 September 2023-Rate of Interest: 4.40% p.a))
(f) Commercial paper - Listed 11,535.66 - - 11,535.66
(Unsecured and repayable within 1 year)
Total (A) 405,974.58 - - 405,974.58
Total (B) 405,974.58 - - 405,974.58

**The amortised cost of Borrowings (other than debt securities) in Note 18 above does not include interest accrued but not due
aggregating to ₹1,030.80 millions disclosed separately under Other financial liabilities in Note 21.

Notes

Designated
at fair value
through
cost profit or loss
profit or loss
(a) Term loan
(i) from banks*
Term Loans (Secured by paripassu floating charge on current assets, book 141,308.04 - - 141,308.04
(Terms of Repayment: ₹857.14 millions in 2 half yearly installments,
₹56,889.86 millions in 1-2-3-4 quarterly installments and ₹167.50
millions in 3 monthly installments during FY 2022-23, ₹857.14 millions
in 2 half yearly installments and ₹48,026.14 millions in 1-2-3-4 quarterly
installments during FY 2023-24, ₹857.14 millions in 2 half yearly
installments and ₹26,555.29 millions in 1-2-3-4 quarterly installments
during FY 2024-25, ₹5,199.35 millions in 1-2-3-4 quarterly installments
during FY 2025-26, ₹2,000.00 millions in 4 quarterly installments during
FY 2026-27. Rate of Interest: 5.79%-8.35 % p.a.)
Term Loan (Secured by way of specific charge on receivables created 28,925.83 - - 28,925.83
out of the proceeds of the loan)
(Terms of Repayment: ₹12,335.31 millions in 12 monthly installments,
₹5,323.12 millions in 1-2-3-4 quarterly installments, ₹250.40 millions
in 2 half yearly installments, ₹450.29 millions in an yearly repayment,
& ₹500.91 millions at the end of tenure during FY 2022-23, ₹5,104.28
millions in 12 monthly installments,& ₹3,160.01 millions in 1-2-3-4
quarterly installments during FY 2023-24, and ₹580.73 millions in
12 monthly installments, & ₹1,220.77 millions in 1-2-3-4 quarterly
installments during FY 2024-25. Rate of Interest 8.00 % -12.00 % p.a)
Term Loan (Secured by paripassu floating charge on housing loan 3,755.26 - - 3,755.26
receivables, credit and current assets)
(Terms of Repayment: ₹169.05 millions in 12 monthly installments,
₹204.70 millions in 1-2-3-4 quarterly installments,₹395.83 millions
in 2 half yearly installments & ₹166.67 millions in yearly installments
during FY 2022-23, ₹169.05 millions in 12 monthly installments, ₹189.08
millions in 1-2-3-4 quarterly installments,₹417.07 millions in 2 half yearly
installments & ₹166.67 millions in yearly installments during FY 2023-24,
₹169.05 millions in 12 monthly installments, ₹189.05 millions in 1-2-3-4
quarterly installments,₹313.00 millions in 2 half yearly installments
& ₹166.67 millions in yearly installments during FY 2024-25, ₹169.05
millions in 12 monthly installments, ₹35.71 millions in 1-2-3-4 quarterly
installments,₹249.27 millions in 2 half yearly installments & ₹166.25
millions in yearly installments during FY 2025-26, ₹169.05 millions in
12 monthly installments,₹83.33 millions in 2 half yearly installments
during FY 2026-27, and ₹84.52 millions in 12 monthly installments,
₹83.33 millions in 2 half yearly installments during FY 2027-28.
Rate of Interest : 7.00 % - 8.00% p.a)
Term Loans(Secured by paripassu floating charge on current assets, 39.95 - - 39.95
book debts, Loans & advances)
(Term of repayment : 2 Equal installments at the end of 15th and 18 th
month from the date of first disbursement and Rate of interest : 8.50%)
Term Loan (Secured by promissory notes, loans, lease and hire purchase 409.88 - - 409.88
receivables, Mortgage bond over loan recoverable consist of business loan,
corporate loan and mortgage loan)

Consolidated
Financial
Statements
Notes

Designated
at fair value
through
cost profit or loss
profit or loss
(Terms of Repayment: ₹158.23 millions in 12 monthly installments
during FY 2022-23, ₹120.77 millions in 12 monthly installments during FY
2023-24, ₹109.82 millions in 12 monthly installments during FY 2024-25
and ₹21.05 millions in 12 monthly installments during FY 2025-26 .
(Terms of Repayment: ₹3.64 millions during FY 2022-23 in 8 monthly -
installments. Rate of interest: 8.70% p.a.)
(Terms of Repayment: ₹4.40 millions during FY 2022-23 in 12 monthly -
installments, ₹3.90 millions during FY 2023-24 in 6-8-12 monthly
installments, ₹1.48 millions during FY 2024-25 in 7 monthly installments.
Rate of Interest: 8.90-9.90% p.a.).
Term Loan (Secured by specific charge on receivables created out of 1,170.14 - - 1,170.14
the proceeds of the loan)
(Terms of Repayment: ₹744.54 millions in 12 monthly installments,&
₹116.32 millions in 1-2-3-4 quarterly installments during FY 2022-23, and
₹192.79 millions in 12 monthly installments, & ₹116.50 millions in 1-2-3-4
quarterly installments during FY 2023-24. Rate of Interest 8.00 % -12.00
% p.a)
(iii) Pass through certificates payable - - - -
(iv) From National Housing Bank 1,466.41 - - 1,466.41
(Terms of Repayment : For FY 2022-23, ₹187.18 millions in quarterly
installments, for FY 2023-24, ₹180.12 millions in quarterly installments,
for FY 2024-25, ₹180.12 millions in quarterly installments for FY 2025-
26, ₹180.12 millions in quarterly installments, for FY 2026-27, ₹180.12
millions in quarterly installments and ₹558.75 millions payable in 38
installments in 5 - 10 years. Rate of interest 6.00 % - 7.00 %)
(b) Loans from related party -
(Terms of Repayment: Repayable on demand- Rate of Interest: 8.50% p.a,)
(c) Securitised Loans 993.31 - - 993.31
(Secured by lease and hire purchase assets and receivables)
FY 2022-23, ₹116.22 millions in 12 monthly installments during FY 2023-24,
₹131.23 millions in 12 monthly installments during FY 2024-25 , ₹142.99
millions in 12 monthly installments during FY 2025-26 and ₹16.17 millions
in 12 monthly installments during FY 2026-27 . Rate of interest 13.48%)

Notes

Designated
at fair value
through
cost profit or loss
profit or loss
(d) Loans repayable on demand
(i) from banks *
Overdraft against Deposit with Banks 76.43 - - 76.43
(Secured by a lien on Fixed Deposit with Banks)
Cash Credit/ Short term loan (Secured by paripassu floating charge on 132,363.78 - - 132,363.78
current assets, book debts, Loans & advances and receivables including
gold loan receivables)
(ii) f rom financial institutions *
Short term loan (Secured by paripassu floating charge on current assets, 2,749.67 - - 2,749.67
book debts, Loans & advances and receivables including gold loan
receivables)
(e) External Commercial Borrowings -
(i) Senior Secured Notes - US Dollar denominated * 75,663.21 - - 75,663.21
(Secured by paripassu floating charge on current assets, book debts,
Loans & advances and receivables including gold loan receivables)
(Terms of Repayment: ₹34,106.63 millions (USD 450 million repayable on
31 October 2022-Rate of Interest: 6.125% p.a), ₹41,685.87 millions (USD
550 million repayable on 02 September 2023-Rate of Interest: 4.40 % p.a)
(f) Commercial paper - Listed 9,892.07 - - 9,892.07
(Unsecured and repayable within 1 year)
Total (A) 408,553.24 - - 408,553.24
Total (B) 408,553.24 - - 408,553.24
**The amortised cost of Borrowings (other than debt securities) in Note 18 above does not include interest accrued but not due aggregating to
₹1,678.01 millions disclosed separately under Other financial liabilities in Note 21.
Note 19: Deposits


Deposits
(i) Public deposits 3,314.76 - - 3,314.76
(ii) From Banks - - - -
(iii) From Others - - - -
Total (A) 3,314.76 - - 3,314.76
Deposits in India - - - -
Deposits outside India 3,314.76 - - 3,314.76
Total (B) 3,314.76 - - 3,314.76

Consolidated
Financial
Statements
Notes


Deposits
(i) Public deposits 2,235.26 - - 2,235.26
(ii) From Banks - - - -
(iii) From Others - - - -
Total (A) 2,235.26 - - 2,235.26
Deposits in India - - - -
Deposits outside India 2,235.26 - - 2,235.26
Total (B) 2,235.26 - - 2,235.26
19.1 Due to customers ( Fixed Deposits)

As at As at
Particulars
March 31, 2023 March 31, 2022
Redeemable from the Balance Sheet date
36-60 months 132.32 20.38
12-36 months 334.40 108.37
Upto 12 months 2,848.04 2,106.51
Total 3,314.76 2,235.26
Note 20: Subordinated Liabilities


Subordinated Debt* Refer note 20.1 - - - -
Subordinated Debt - Listed** Refer note 20.2 ,20.3 & 20.4 1,709.39 - - 1,709.39
Subordinated Debt Others Refer note 20.5 587.94 - - 587.94
Subordinated Loan Refer note 20.6 249.22 - - 249.22
Total (A) 2,546.55 - - 2,546.55
Subordinated Liabilities in India 2,546.55 - - 2,546.55
Subordinated Liabilities outside India - - - -
Total (B) 2,546.55 - - 2,546.55
*Excludes unpaid (unclaimed) matured debentures of ₹11.98 millions shown as a part of Other financial liabilities in Note 21.
**Includes EIR impact of transaction cost; excludes unpaid (unclaimed) matured listed debentures of ₹4.96 millions (March 31, 2022: ₹7.07 millions)
shown as a part of Other financial liabilities in Note 21.

Notes

The amortised cost of Subordinated Liabilities as at March 31, 2023 in Note 20 above does not include interest accrued but not due aggregating to
₹789.17 millions disclosed separately under Other financial liabilities in Note 21.

Subordinated Debt* Refer note 20.1 - - - -
Subordinated Debt - Listed** Refer note 20.2, 20.3& 20.4 2,161.03 - - 2,161.03
Subordinated Debt Others Refer note 20.5 587.33 - - 587.33
Subordinated Loan Refer note 20.6 248.97 - - 248.97
Total (A) 2,997.33 - - 2,997.33
Subordinated Liabilities in India 2,997.33 - - 2,997.33
Subordinated Liabilities outside India - - - -
Total (B) 2,997.33 - - 2,997.33
*Excludes unpaid (unclaimed) matured debentures of ₹18.62 millions shown as a part of Other financial liabilities in Note 21.
**Includes EIR impact of transaction cost; excludes unpaid (unclaimed) matured listed debentures of ₹7.07 millions (March 31, 2021: ₹42.46
millions) shown as a part of Other financial liabilities in Note 21.
The amortised cost of Subordinated Liabilities as at March 31, 2022 in Note 20 above does not include interest accrued but not due aggregating to
₹965.59 millions disclosed separately under Other financial liabilities in Note 21.
20.1 Subordinated Debt

Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking
Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016. The principal amount of outstanding privately placed subordinated debt issued by the Company stood
at ₹11.98 millions (March 31,2022: ₹18.62 millions)

XII 01.04.2013 - 07.07.2013 2.82 3.77 66 months 12.67
XI 01.10.2012 - 31.03.2013 4.14 5.47 66 months 12.67-13.39
X 01.04.2012 - 30.09.2012 1.58 2.67 66 months 12.67-13.39
IX 01.11.2011 - 31.03.2012 0.92 1.69 66 months 12.67-13.39
VIII 01.07.2011 - 31.10.2011 1.00 1.22 66 months 12.67
VII 01.04.2011 - 30.06.2011 0.48 0.66 66 months 12.67
VII 08.02.2011 - 31.03.2011 0.08 0.08 66 months 12.67
VII 01.01.2011 - 07.02.2011 0.43 0.48 72 months 11.61
VI 01.07.2010 - 31.12.2010 0.37 0.48 72 months 11.61
V 01.01.2010 - 30.06.2010 0.16 0.76 72 months 11.61

Consolidated
Financial
Statements
Notes

IV 17.08.2009 - 31.12.2009 - 0.89 72 months 11.61

IV 01.07.2009 - 16.08.2009 - 0.05 72 months 12.50
IV 01.07.2009 - 16.08.2009 - 0.40 69 months 12.12
Sub Total 11.98 18.62
Less: Unpaid (Unclaimed) 11.98 18.62
matured debentures shown
as a part of Other financial
liabilities
Total - -
20.2 Subordinated Debt -Public & Listed

The principal amount of outstanding Unsecured Redeemable Non- Convertible Listed Debentures issued by the Company
as Subordinated Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important
Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,2016 issued through Public Issue
stood at ₹971.32 millions (March 31, 2022: ₹1330.79 millions).

PL 17 24.04.2017 187.17 187.17 96 Months 9.06

PL 16 30.01.2017 317.76 317.76 96 Months 9.06
PL 15 12.05.2016 236.00 236.00 90 Months 9.67
PL 14 20.01.2016 230.39 230.39 87 Months 10.02
PL 13 14.10.2015 - 359.47 84 Months 10.41
Sub Total 971.32 1,330.79
Less: EIR impact of 4.29 7.05
transaction cost
Total 967.03 1,323.74
20.3 Subordinated Debt - Private Placement & Listed

The Company has principal amount outstanding of privately placed Unsecured Redeemable Non-Convertible Listed
Debentures issued as Subordinated Debt which qualifies as Tier II capital under the Non-Banking Financial Company
- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
stood at NIL (March 31, 2022: ₹100 millions).

IA 26.03.2013 - 100.00 120 Months 12.35

Total - 100.00

Notes

20.4 Subordinated Liabilities - Debentures - Listed
BML has principal outstanding Unsecured Redeemable Non Convertible Debentures issued as Subordinated Debt which
qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve Bank) Directions, 2016 stood at ₹750.00 millions (March 31, 2022:
₹750.00 millions)
Amount Amount
Date of Nominal value Total number of
Redemption per debenture# debentures#
March 31, 2023 March 31, 2022
14.50% Unsecured, Redeemable, Rated, 500.00 500.00 30.09.2027 1,000,000.00 500.00
listed, Subordinated, Taxable,Non-
11.5% Unsecured, Redeemable, Rated, listed, 250.00 250.00 31.05.2023 1,000.00 250,000.00
Subordinated, Taxable, Non-Convertible
Debentures
Sub Total 750.00 750.00
Total 742.36 737.29
#Nominal value per debenture and total number of debentures are in full numbers.
20.5 Subordinated Liabilities - Debentures - Unlisted

BML has principal outstanding Unsecured Redeemable Non Convertible Debentures issued as Subordinated
Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 stood at ₹590 millions
(March 31, 2022: ₹590 millions)
Amount Amount
Date of Nominal value Total number of
Redemption per debenture # debentures#
March 31, 2023 March 31, 2022
Subordinated Debt (Tier II Capital)
14.50% Unsecured, Redeemable, Rated, 240.00 240.00 03.12.2025 100,000.00 2,400.00
Unlisted, Subordinated, Taxable,Non-
14.50% Unsecured, Redeemable, Rated, 150.00 150.00 15.05.2026 100,000.00 1,500.00
14% Unsecured, Redeemable, Rated, 200.00 200.00 11.09.2025 1,000,000.00 200.00
Sub Total 590.00 590.00
Total 587.94 587.33
#Nominal value per debenture and total number of debentures are in full numbers.

Consolidated
Financial
Statements
Notes

20.6 Subordinated Liabilities - Loan
Belstar Microfinance Limited

Amount Amount
Particulars As at As at Date of Redemption Interest rate %
March 31, 2023 March 31, 2022”
14.50% Unsecured, Subordinated loan 250.00 250.00 23.12.2025 14.50
Sub Total 250.00 250.00
Total 249.22 248.97
Note 21: Other Financial liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
Interest accrued but not due on borrowings 9,694.85 11,984.32
Unpaid (Unclaimed) dividends 9.23 8.68
Unpaid (Unclaimed) matured Non Convertible Debentures and interest accrued thereon 264.02 94.42
Payable towards assignment transactions 2,003.20 866.81
Unpaid (Unclaimed) matured Listed Non convertible Debentures and interest accrued thereon 74.81 76.07
Direct assignment portfolio collection payable 103.87 96.56
Security deposits received 15.63 15.75
Auction surplus refundable 39.91 42.76
Others 370.87 138.11
Total 12,576.39 13,323.48
Note 22: Provisions

As at As at
Particulars
March 31, 2023 March 31, 2022
Provision in excess of ECL ( Refer Note 22.1) 2,953.76 2,953.76
Provision for undrawn commitments 6.88 19.59
Provision for employee benefits
- Gratuity 93.87 147.41
- Compensated absences 386.51 356.19
- Others 63.99 49.65
Provision for unspent expenditure on Corporate Social Responsibility (Refer Note 22.2) 22.83 66.83
Provisions for other losses (Refer Note 22.2) 91.08 86.40
Total 3,618.92 3,679.83
22.1 Provision in excess of ECL represents the provision created on loan assets (including in prior years), which is in excess
of the amounts determined and adjusted against such assets as impairment loss on application of expected credit loss
method as per lnd AS 109 (‘Financial Instruments’), and retained in the books of account as a matter of prudence.

Notes

22.2 The movement in provisions for unspent expenditure on Corporate Social Responsibility and other losses during
2022-23 and 2021-22 is as follows:
Provision
for unspent
Provisions for
Particular expenditure on
other losses
Corporate Social
Responsibility
As at April 01, 2021 120.49 96.83
Additions - 4.35
Reversed - (10.15)
Utilised (53.66) (4.63)
As at March 31, 2022 66.83 86.40
Additions - 10.36
Reversed - (4.55)
Utilised (44.00) (1.13)
As at March 31, 2023 22.83 91.08
Note 23: Other Non-financial liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
Statutory dues payable 577.95 983.22
Insurance premium payable 2.15 12.06
Advance interest received on loans 8.04 9.25
Other non financial liabilities 95.45 137.10
Total 683.59 1,141.63
Note 24: Equity share capital
24.1 The reconciliation of equity shares outstanding at the beginning and at the end of the period
As at As at
Particulars
March 31, 2023 March 31, 2022
Authorised
450,000,000 (March 31, 2022 : 450,000,000) Equity shares of ₹10/- each 4,500.00 4,500.00
5,000,000 (March 31, 2022 : 5,000,000) Preference shares of ₹1000/- each 5,000.00 5,000.00
Issued, subscribed and fully paid up
March 31, 2023: 40,14,48,231 (March 31, 2022: 401,345,266) Equity shares of ₹10/- each fully 4,014.48 4,013.45
paid up
Total Equity 4,014.48 4,013.45
24.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ₹10/- per share. All these shares have the same
rights and preferences with respect to the payment of dividend, repayment of capital and voting. The Company declares
and pays dividends in Indian rupees. The interim dividend is declared and approved by Board of Directors.

Consolidated
Financial
Statements
Notes

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.
24.3 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of
the year
Particulars In Numbers Amount
As at April 01, 2021 401,195,856 4,011.96
As at March 31, 2022 401,345,266 4,013.45
As at March 31, 2023 401,448,231.00 4,014.48
24.4 Details of Equity shareholder holding more than 5% shares in the company
% change in % change in
Particulars shareholding shareholding
No. of % holding in No. of % holding in
of Promoters of Promoters
shares held the class shares held the class
during the during the
year year
Sara George 29,036,548 7.23% Nil 29,036,548 7.23% Not Applicable
George Alexander Muthoot (Promoter) 23,630,900 5.89% Nil 23,630,900 5.89% -45.84%
George Jacob Muthoot (Promoter) 43,630,900 10.87% Nil 43,630,900 10.87% Nil
George Thomas Muthoot (Promoter) 43,630,900 10.87% Nil 43,630,900 10.87% Nil
Susan Thomas 29,985,068 7.47% Nil 29,985,068 7.47% Not Applicable
Alexander George 22,289,710 5.55% Nil 22,289,710 5.55% Not Applicable
George M George 22,289,710 5.55% Nil 22,289,710 5.55% Not Applicable
24.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s) without
payment being received in cash, fully paid up by way of bonus shares and shares bought back
Fully paid up
pursuant to
Fully paid up
contract(s) Shares bought
Particulars by way of bonus
without payment back
shares
being received in
cash
Equity Shares :
24.6 Shares reserved for issue under Employee Stock Option Scheme
The Company has reserved 63,485 equity shares (March 31, 2022: 206,865) for issue under the Employee Stock Option
Scheme 2013.
Notes

Note 25: Other equity
As at As at
Particulars
March 31, 2023 March 31, 2022
Statutory reserve
Add: Transfer from Retained earnings 7,122.21 8,062.65
Securities Premium
Add: Securities premium on share options exercised during the year 36.59 47.26
Securities premium on share options exercised during the year
Debenture Redemption Reserve
Less: Amount transferred to surplus in the statement of profit and loss -
General Reserve
Share option outstanding account
Add: Share based payment expenses - (1.98)
Less: Transfer To Secuties premium on account of options exercised - (41.28)
Deduction on allotment during the year (41.62)
Capital reserve
Capital Redemption reserve
Retained Earnings

Consolidated
Financial
Statements
Notes
As at As at
Particulars
March 31, 2023 March 31, 2022
Add: Profit for the year 36,122.98 40,166.20
Add : Transfers from ESOP Reserves 9.16
Add: Adjustments to non controlling interest 259.51 657.40
Less: Appropriation
Dividend on equity shares (8,026.91) (8,023.92)
Transfer to Statutory Reserve (7,122.21) (8,062.65)
Total appropriations (15,149.12) (16,086.57)
Other Comprehensive Income
Balance at the beginning of the year (671.06) 27.10
Add/Less: Other comprehensive income for the year 439.54 (698.16)
Balance at the end of the year (231.52) (671.06)
Total 212,643.04 183,843.79
25.1 Nature and purpose of reserve (d) General Reserve

Under the erstwhile Companies Act 1956, general
(a) Statutory reserve
reserve was created through an annual transfer
Statutory Reserve represents the Reserve Fund of profit for the period at a specified percentage
created under Section 45 IC of the Reserve Bank of in accordance with applicable regulations.
India Act, 1934. Accordingly an amount representing Consequent to introduction of Companies Act 2013,
20% of Profit for the period is transferred to the the requirement to mandatorily transfer a specified
fund for the year. percentage of the net profit to general reserve has
been withdrawn. However, the amount previously
(b) Securities Premium transferred to the general reserve can be utilised
only in accordance with the specific requirements
This Reserve represents the premium on issue of
of Companies Act, 2013.
equity shares and can be utilized in accordance
with the provisions of the Companies Act, 2013.”
(e) Share Options outstanding account
(c) Debenture Redemption Reserve The fair value of equity settled share based
payments transactions is recognised in the
Pursuant to Rule 18(7)(b)(iii) of the Companies
Statement of Profit and Loss with corresponding
(Share Capital and Debentures) Rules, 2014, as
credit to Share option outstanding account.
amended vide the Companies (Share Capital and
Debentures) Amendment Rules, August 16, 2019,
the Company, being an NBFC registered with the (f) Retained earnings
Reserve Bank of India under Section 45 IA of the This Reserve represents the cumulative profits
RBI Act, 1934, is not required to create a Debenture of the Company. This Reserve can be utilized in
Redemption Reserve, in respect of public issue of accordance with the provisions of the Companies
debentures and debentures issued by it on a private Act, 2013.
placement basis.

Notes

(g) Capital Redemption Reserve Remeasurement of defined benefit plans
The amount in Capital Redemption Reserve is It represents the gain/(loss) on remeasurement of
equal to nominal arnount of the Non-Convertible Defined Benefit Obligation and of Plan assets
Redeemable Preference Shares redeemed. The
Group may issue fully paid up bonus shares
Gain/ (loss) from translating financial
to its members out of the capital redemption
statements of foreign operations
reserve account.
The Group is required to convert the financial
statements of its foreign operations into its
(h) Capital Reserve functional currency, which is the Indian Rupee.
A capital reserve is used for contingencies or to offset This translation process involves using the
capital losses. It is derived from the accumulated exchange rates at the end of the reporting period
capital surplus created out of capital profit. for assets and liabilities and the exchange rates at
the transaction dates for income and expenses. The
resulting exchange differences from this translation
(i) Other Comprehensive Income
are not recognized in the Statement of Profit and
Equity instruments through Other Loss. Instead, they are recorded separately as a
Comprehensive Income component of other equity known as the Foreign
Currency Translation Reserve (FCTR).
The Company has elected to recognise changes in the
fair value of certain investments in equity securities
However, there are two exceptions to this approach.
in other comprehensive income. These changes
Firstly, if the exchange differences pertain to a non-
are accumulated in the FVOCI equity investments
controlling interest (NCI) in a subsidiary, the Group
reserve. The Company transfers amounts from this
allocates the relevant portion of these differences
reserve to retained earnings when the relevant
to the NCI. Secondly, if the Group disposes of a
equity securities are derecognised.
foreign operation, either wholly or partially, the
cumulative amount of exchange differences in the
Effective portion of Cash Flow Hedges and Cost FCTR is transferred to the Statement of Profit and
of Hedging Reserve Loss. This transfer becomes a part of the gain or
Effective portion of cash flow hedges represents loss on disposal.
the cumulative gains/(losses) arising on changes in
fair value of the derivative instruments designated 25.2 Dividend proposed to be distributed to equity
as cash flow hedges through OCI. The amount shareholders for the period
recognized as effective portion of Cash flow hedge
is reclassified to profit or loss when the hedged item Dividend proposed to be distributed to equity
affects profit or loss. The company designates the shareholders for the period (not recognised as
spot element of foreign currency forward contracts liability)
as hedging instruments. The changes in the fair
Interim dividend for 2022-23 @ ₹22/- per
value of forward element of the forward contract on
equity share 8,831.86
reporting date is deferred and retained in the cost
of hedging reserve. Date of declaration of interim dividend for
the period April 06, 2023

Consolidated
Financial
Statements
Notes

Note 26: Interest income
Interest Interest
income on income on
On Financial On Financial
On Financial financial On Financial financial
Particulars asset asset
asset assets asset assets
measured measured
measured at classified measured at classified
amortised cost at fair value amortised cost at fair value
through OCI through OCI
through profit through profit
or loss or loss
Interest on Loans
Gold Loan - 101,460.63 - - 107,851.23 -
Corporate Loans - 80.36 - - 26.31 -
Personal Loan - 833.91 - - 603.60 -
Staff Loan - 3.90 - - 2.82 -
Housing Loans - 1,322.97 - - 1,602.66 -
Mortgage loans - 38.04 - - 93.16 -
Pledge loans - 10.75 - - 3.59 -
Business Loans - 225.11 - - 126.30 -
Vehicle Loan - 213.01 - - 352.82 -
Microfinance loans - 8,539.83 - - 6,622.79 -
Other loans - 32.14 - - 28.25 -
Interest on hire purchase - 0.66 - - 0.11 -
Interest on leases - 32.68 - - 122.60 -
Interest income from investments - 1,746.34 - - 1,228.59 -
Interest on deposits with banks - 812.60 - - 504.72 -
Interest on treasury bills - 97.09 - - 22.83 -
Interest Income on Unit Trust - 9.45 - - 18.38 -
Other interest income - 95.88 - - 40.76 -
Total - 115,555.35 - - 119,251.52 -
Note 27: Net gain/(loss) on fair value changes

Particulars
March 31, 2023 March 31, 2022
(A) Net gain on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments 716.51 466.84
- Others - 28.90
Net gain/ (loss) on fair value changes -
(ii) On financial instruments designated at fair value through profit or loss (192.38) -
(B) Gain on fair valuation of equity shares 0.01 -
Total Net gain/(loss) on fair value changes (C) 524.14 495.74
Fair Value changes:
- Realised 716.51 495.74
- Unrealised (192.37) -
Total Net gain(loss) on fair value changes 524.14 495.74

Notes

Note 28: Sale of services
Particulars
March 31, 2023 March 31, 2022
Income from Money Transfer business 110.02 121.44
Income from Power Generation Windmill 3.24 18.25
Total 113.26 139.69
Note 29: Other Income

Particulars
March 31, 2023 March 31, 2022
Profit on settled contracts - 13.60
Bad debt recovered 430.05 169.70
Rental income 3.10 2.54
Others 340.27 339.69
Total 773.42 525.54
Note 30: Finance Costs

Particulars liabilities liabilities
liabilities liabilities
measured at fair measured at fair
measured at measured at
value through value through
amortised cost amortised cost
(a) Interest on deposits - 494.89 - 244.42
(b) Interest on borrowing (other than debt securities) - 30,559.24 - 29,380.14
(c ) Interest on debt securities - 10,573.87 - 12,382.17
(d) Interest on subordinate liabilities - 434.95 - 520.91
(e) Interest on lease liabilities - 18.46 - 13.48
(f) Other interest expense - 10.37 - 17.40
Total - 42,091.78 - 42,558.52
Note 31: Impairment on financial instruments

On financial On financial On financial On financial
Particulars instruments instruments instruments instruments
measured at fair measured at measured at fair measured at
value through OCI amortised cost value through OCI amortised cost
Loans - 2,117.10 - 2,599.23
Bad Debts Written Off - 169.16 - 1,225.07
Investments Written Off - 115.94 - 7.00
Other Assets - 10.11 - 1.62
Provison for Interest only Strip - 7.76 - 9.19
Total - 2,420.07 - 3,842.21

Consolidated
Financial
Statements
Notes

Note 32: Employee Benefits Expenses
Particulars
March 31, 2023 March 31, 2022
Salaries and Wages 13,831.22 11,426.89
Contributions to Provident and Other Funds 870.54 815.96
Share based payments to employees - (1.98)
Staff Welfare Expenses 180.92 127.22
Total 14,882.68 12,368.09
Note 33: Depreciation, amortization and impairment

Particulars
March 31, 2023 March 31, 2022
Depreciation of Tangible Assets 680.52 587.88
Depreciation of Invesment Property 0.30 2.96
Amortization of Intangible Assets 29.24 40.94
Depreciation on Right to Use Assets 71.55 68.25
Total 781.61 700.03
Note 34: Other Expenses

Particulars
March 31, 2023 March 31, 2022
Rent 2,621.18 2,434.78
Rates & Taxes 651.94 618.83
Energy Costs 430.57 336.65
Repairs and Maintenance 621.22 642.21
Communication Costs 488.06 554.63
Printing and Stationery 243.13 175.31
Advertisement & Publicity 1,613.03 1,213.48
Directors' Sitting Fee 14.83 21.09
Commission to Non-Executive Directors 10.15 8.82
Auditors' fees and expenses (Refer note 34.1) 15.99 13.44
Legal & Professional Charges 599.03 409.44
Insurance 136.72 144.79
Internal Audit and Inspection Expenses 146.65 113.55
Vehicle Hire & Maintenance 11.69 9.28
Travelling and Conveyance 690.35 425.52
Business Promotion Expenses 221.33 67.25
Bank Charges 156.60 117.29
Donation to Political Parties 5.58 0.50
Business Support Charges 57.54 18.04
Loss on Sale of property, plant and equipment 21.16 6.47
Membership and subscription 9.52 8.64
Cloud Charges 50.83 29.10
Establishment Charges 10.33 0.15
Miscellaneous expense 533.42 560.49
Expenditure on Corporate Social Responsibility (Refer note 34.2) 985.26 845.96
Total 10,346.11 8,775.71

Notes

Note 34.1 Auditors’ fees and expenses:
Particulars
March 31, 2023 March 31, 2022
As Auditors' (including limited review) 13.85 12.58
For Other Services 2.13 0.80
For Reimbursement of Expenses 0.01 0.06
Total 15.99 13.44
Note 34.2 Expenditure on Corporate Social Responsibility:

Particulars
March 31, 2023 March 31, 2022
a) Gross amount required to be spent by the Group during the year 984.51 841.63
b) Amount spent during the period
i) Construction/acquisition of any asset
- In Cash - -
-Yet to be paid in cash - -
ii) On purpose other than (i) above -
- In Cash 985.26 845.96
- Yet to be paid in cash - -
Total 985.26 845.96
Note 35: Income Tax

The components of income tax expense for the year ended March 31, 2023 and year ended March 31, 2022 are:

Particulars
March 31, 2023 March 31, 2022
Current tax 12,341.19 14,110.96
Adjustment in respect of current income tax of prior years (105.52) (7.20)
Deferred tax relating to origination and reversal of temporary differences 294.47 (315.12)
Income tax expense reported in statement of Profit and Loss 12,530.14 13,788.64
OCI Section
Current tax related to items recognised in OCI during the period:
Deferred tax related to items recognised in OCI during the period:
- Remeasurement of defined benefit plans (0.86) 0.40
- Fair value changes on equity instruments through other comprehensive income (21.35) 15.48
- Change in Value of forward elememts of forward contract 99.78 (168.68)
-Effective portion of gain on hedging instruments in cash flow hedges 61.66 (10.15)
-Fair value gain on debt instruments through other comprehensive income - (6.18)
Income tax charged to OCI 151.55 (169.13)
In accordance with the provisions of Section 115BAA of the Income Tax Act, 1961, the companies in the Group incorporated in
India have opted to pay income tax at a reduced rate of 22% (plus surcharge @ 10% and cess @ 4%).

Consolidated
Financial
Statements
Notes

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 tax rate applicable to the companies in the Group. A reconciliation between the tax expense and the accounting profit
multiplied by substantively enacted tax rate for the year ended March 31, 2023 and year ended March 31, 2022 is, as follows:
Particulars
March 31, 2023 March 31, 2022
Accounting profit before tax 49,227.80 54,101.87
At India’s statutory income tax rate of 25.168% (2022: 25.168%) 12,389.65 13,616.36
Effect of derecognition of previously recognised deferred tax assets - -
Effect of unrecognised deferred tax assets (0.02) (3.54)
Effect of derecognition of previously recognised deferred tax assets (0.86) -
Effect of income that is exempt from taxation 6.98 10.51
Income of Subsidiaries taxed at diff tax rates (net) (6.21) 11.71
Income taxed at different rate (Capital Gains) - -
Impact of allowance of Provision 5% as per Section 36(1)(viia)(d) of IT act, 1961 - -
Adjustments in respect of current income tax of previous year (94.95) (7.20)
Effect of change in tax law, rate or tax status - -
Expenses disallowed in Income Tax Act 249.13 198.54
Interest on income tax grouped under Current tax charge 30.72 43.09
Others (44.31) (80.83)
Income tax expense reported in the Statement of Profit and Loss 12,530.14 13,788.64
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
As at As at
Deferred Tax Assets/(Liabilities)
March 31, 2023 March 31, 2022
Fixed asset: Timing difference on account of Depreciation and Amortisation 308.69 281.09
ROU Asset : Timing difference on account of depreciation and amortisation 1.41 (0.70)
On application of Expected Credit Loss method for loan loss provisions and related adjustments as 552.06 702.71
per Ind AS 109 and amortisation of net income under Effective Interest Rate Method not adjusted
under Income Tax Act, 1961
On Fair Value Changes of derivative liability not adjusted under Income Tax Act, 1961 135.20 381.05
On Amortisation of expenses under Effective Interest Rate method for financial liabilities not (109.95) (169.34)
permitted under Income Tax Act, 1961
Net gain on fair valuation of Investments not adjusted under Income Tax Act, 1961 (148.83) (170.00)
Impact due to gain/loss on fair value of securitisation (248.81) (109.93)
Impact of expenditure charged to the Statement of Profit and Loss in the current year but claimed as 2.98 12.91
expense for tax purpose on payment basis.
Tax Losses relating to foreign subsidiary 0.05 20.98
Transitional adjustment 51.00 95.62
Statutory reserve as per NHB (67.54) (62.31)
Interest Spread on assignment (177.34) (215.97)
On Other Provisions 189.20 157.27
Net deferred tax assets / (liabilities) 488.12 923.38
Deferred tax Assets (Net as per Balance Sheet) 640.98 1,089.74
Deferred tax Liabilities (Net as per Balance Sheet) 152.86 166.36
Net deferred tax assets / (liabilities) 488.12 923.38

Notes

Reconciliation of deferred tax assets/(liabilities): -
Particulars
March 31, 2023 March 31, 2022
Opening balance 923.38 450.54
Tax income/(expense) during the period recognised in profit or loss (294.47) 315.12
Tax income/(expense) during the period recognised in OCI (139.23) 169.14
Closing balance 488.12 923.38
Note 36: Earnings per share

Basic earnings per share (EPS) is calculated by dividing the net profit for the year attributable to equity holders of Parent
Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit attributable to equity holders of Parent Company (after adjusting for interest
on the convertible preference shares and interest on the convertible bond, in each case, net of tax, if any) 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 the conversion of all the dilutive potential ordinary shares into ordinary shares.

Particulars
March 31, 2023 March 31, 2022
Net profit attributable to ordinary equity holders 36,122.98 40,166.20
Weighted average number of equity shares for basic earnings per share 401,397,883 401,268,121
Effect of dilution 60,216 196,527
Weighted average number of equity shares for diluted earnings per share 401,458,099 401,464,648
Earnings per equity share
Basic earnings per share ₹ 89.99 100.10
Diluted earnings per share ₹ 89.98 100.05
Note 37: Segment Information

The Group is engaged primarily in the business of Financing, where operating results are regularly reviewed by the respective
entity’s chief operating decision maker to make decisions about resources to be allocated and to assess its performance, and for
which discrete financial information is available. Further other business segments do not exceed the quantitative thresholds
as defined by the Ind AS 108 on “Operating Segment”. Hence, there are no separate reportable segments, as required by the Ind
AS 108 on “Operating Segment”.
Note 38: Retirement Benefit Plan
Defined Contribution Plan

The Group makes contributions to Provident Fund which are defined contribution plan for qualifying employees.
Defined Benefit Plan

The Company and five subsidiaries (AAF, BML, MHIL ,MML and MIBPL) have defined benefit gratuity plans. The gratuity plan is
governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity
on leaving the service of the Group at 15 days salary (last drawn salary) for each completed year of service.
Gratuity schemes are funded by Insurance companies except in the case of AAF.

Consolidated
Financial
Statements
Notes

The following tables summaries 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.
Net liability/(assets) recognised in the Balance Sheet

As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of funded obligations 1,426.10 1,415.52
Fair value of planned assets (1,332.23) (1,268.10)
Defined Benefit obligation/(asset) 93.87 147.42
Muthoot Money Limited : Net liability/(assets) recognised in the Balance Sheet

As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of funded obligations 2.31 1.68
Fair value of planned assets (3.88) (3.43)
Defined Benefit obligation/(asset) (1.57) (1.75)
Net benefit expense recognised in Statement of Profit and Loss

As at As at
Particulars
March 31, 2023 March 31, 2022
Past service cost - (0.16)
Net Interest on net defined benefit liablity/ (asset) 10.52 5.73
Net benefit expense 192.98 182.56
Details of changes in present value of defined benefit obligations as follows:

As at As at
Particulars
March 31, 2023 March 31, 2022
Present value of defined benefit obligation at the beginning of the year 1,417.20 1,333.98
Past Service Cost - (0.16)
Interest cost on benefit obligation 88.23 77.70
Re-measurements:
a. Actuarial loss/ (gain) arising from changes in financial assumptions (67.43) (29.02)
b. Actuarial loss/ (gain) arising from experience over the past years 3.34 (3.14)
Benefits paid (195.35) (135.52)
FCTR Adjustments (0.08) (3.63)
Present value of Defined Benefit obligation at the end of the year 1,428.41 1,417.20

Notes

Details of changes in fair value of plan assets are as follows: -
As at As at
Particulars
March 31, 2023 March 31, 2022
Fair value of plan assets at the beginning of the year 1,271.53 1,238.79
Interest income on plan assets 77.71 71.97
Employer contributions 206.14 103.72
Benefits paid (194.30) (134.70)
Re-measurements:
a. Return on Plan assets, excluding amount included in net interest on the net defined benefit (24.97) (8.25)
liablity/(asset)
Fair value of plan assets as at the end of the year 1,336.11 1,271.53
Actual return on plan assets 52.74 63.72
Expected employer contribution for the coming year 175.99 172.27
Remeasurement (gain)/ loss in Other Comprehensive Income (OCI)

Particulars
March 31, 2023 March 31, 2022
Remeasurements on defined benefit obligation
Actuarial gain/(loss) arising from changes in financial assumptions 67.43 34.33
Actuarial gain/(loss) arising from experience over the past years (1.34) (2.19)
Remeasurements on plan assets
Return on Plan assets, excluding amount included in net interest on the net defined benefit (24.97) (8.25)
liablity/(asset)
Actuarial gain /(loss) (through OCI) 41.12 23.89
As at March 31, 2023 and March 31, 2022, plan assets of the Group, where applicable, were primarily invested in insurer
managed funds.
The principal assumptions used in determining gratuity obligations for the Group’s plans are shown below:

Particulars
March 31, 2023 March 31, 2022
Salary Growth Rate 7.00% - 15.00% P.a 6.00% - 10.00% p.a
Discount Rate 7.10% - 15.00% 4.60% - 13.10% p.a
Withdrawal Rate 15.00% - 38.00% p.a. 15.00% - 38.00% p.a.
Mortality IALM 2012-14 Ult. IALM 2012-14 Ult.
Interest rate on net DBO/ (Assets) 4.60% - 6.20% p.a. 4.30% - 6.25% p.a.
Expected weighted average remaining working life 2 - 5 Years 2 - 5 Years

Consolidated
Financial
Statements
Notes

A quantitative sensitivity analysis for significant assumption As at March 31, 2023 and March 31, 2022 of
the Parent Company, MHIL ,MML and MIBPL are as below:
As at As at
March 31, 2023 March 31, 2022
Employee turnover Increase by 1% (2.74) (5.89)
Employee turnover Decrease by 1% 2.77 6.24
Mortality Rate Increase in expected lifetime by 1 year 0.06 0.06
Mortality Rate Increase in expected lifetime by 3 years 0.15 0.15
BML are as below:
As at As at
March 31, 2023 March 31, 2022
Discount Rate Increase by 0.50% (1.07) (0.86)
Discount Rate Decrease by 0.50% 1.10 0.89
Further Salary Increase Increase by 1% 2.14 -
Further Salary Increase Decrease by 1% (2.06) -
Further Salary Increase Increase by 0.50% - 1.71
Further Salary Increase Decrease by 0.50% - (1.64)
The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining
other parameters constant. There are no changes from the previous period to the methods and assumptions underlying the
sensitivity analyses. The weighted average duration of the defined benefit obligation As at March 31, 2023 is 5 years for the
Company , BML, & MIBPL and 2 years for MML & MHIL (As at 31, March 2022; 5 Years for the company, BML & MIBPL and 2
years for MML & MHIL) .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.
AAF are as below:
As at As at
March 31, 2023 March 31, 2022
Discount Rate Increase by 5% - (7.51)
Discount Rate Decrease by 5% - 9.65
Description of Asset Liability Matching (ALM) Policy

The Group primarily deploys its gratuity investment assets in insurer-offered debt market-linked plans. As investment returns
of the plan are highly sensitive to changes in interest rates, liability movement is broadly hedged by asset movement if the
duration is matched.

Notes

Description of funding arrangements and funding policy that affect future contributions
The liabilities of the fund are funded by assets. The Group aims to maintain a close to full-funding position at each Balance
Sheet date. Future expected contributions are disclosed based on this principle.
The principal assumptions used in determining leave encashment obligations for the Group’s plans are
shown below:
The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for
the estimated term of the obligations. The estimate of future salary increases considered, takes into account the inflation,
seniority, promotion, increments, mortality, withdrawals and other relevant factors.
Note 39: Maturity analysis of assets and liabilities

The table below shows the maturity analysis of assets and liabilities according to when they are expected to be recovered or
settled. For Loans and advances to customers, the Group uses the same basis of expected repayment behaviour as used for
estimating the EIR. Issued debt reflect the contractual coupon amortisations.
Particulars
Within 12 months After 12 months Total
Assets
Financial assets
Cash and cash equivalents 77,701.83 - 77,701.83
Bank Balance other than Cash and cash equivalents 1,870.21 784.55 2,654.76
Derivative Financial instruments - - -
Trade receivables 98.95 - 98.95
Loans 640,736.41 65,131.34 705,867.75
- Adjustment on account of EIR/ECL - - (323.91)
Investments 946.56 4,510.56 5,457.12
- Adjustment on account of EIR/ECL - - -
Other financial assets 1,758.47 1,694.53 3,453.00
Non-financial Assets - - -
Current tax assets (net) 112.42 362.15 474.57
Deferred tax assets (net) 9.34 631.64 640.98
Investment property 12.84 69.18 82.02
Property, plant and equipment - 3,272.37 3,272.37
Right to use assets 14.13 128.10 142.23
Capital Work In Progress - 674.27 674.27
Goodwill - - -
Other intangible assets - 58.85 58.85
Intangible Asset under Development - 0.44 0.44
Other non financial assets 696.67 237.34 934.01
Total assets 723,957.83 77,555.32 801,189.24
Liabilities
Derivative financial instruments 1,921.73 - 1,921.73
Trade payables 1,341.21 - 1,341.21
Other Payables 817.29 - 817.29

Consolidated
Financial
Statements
Notes

Particulars
Debt Securities 56,198.86 90,002.14 146,201.00
- Adjustment on account of EIR - - (155.21)
Borrowings (other than debt securities) 294,093.74 112,010.76 406,104.50
Deposits 2,848.48 466.28 3,314.76
- Adjustment on account of EIR - - -
Subordinated Liabilities 713.50 1,837.34 2,550.84
Lease Liabilities 64.99 90.58 155.57
Other Financial liabilities 10,652.02 1,924.37 12,576.39
- - -
Non-financial Liabilities - - -
Current tax liabilities (net) 811.92 - 811.92
Provisions 3,233.80 385.12 3,618.92
Deferred tax liabilities (net) - 152.86 152.86
Other non-financial liabilities 635.92 47.67 683.59
Total Liabilities 373,333.45 206,917.12 579,961.16
Net 350,624.38 (129,361.79) 221,228.09

Particulars
Assets
Financial assets
Cash and cash equivalents 100,358.14 - 100,358.14
Bank Balance other than Cash and cash equivalents 2,048.93 742.54 2,791.47
Derivative Financial instruments 605.01 - 605.01
Trade receivables 70.09 - 70.09
Loans 608,721.48 42,117.79 650,839.27
- Adjustment on account of EIR/ECL - - (5,562.86)
Investments 1,352.43 3,880.62 5,233.06
- Adjustment on account of EIR/ECL - - -
Other financial assets 1,053.01 1,754.26 2,807.28
Current tax assets (net) 110.21 - 110.21
Deferred tax assets (net) 15.42 1,074.32 1,089.74
Investment property 9.07 84.33 93.41
Property, plant and equipment 0.88 2,816.05 2,816.92
Right to use assets 12.80 135.00 147.80
Capital Work In Progress 66.97 456.47 523.44
Goodwill - - -
Other intangible assets - 58.74 58.74
Intangible Asset under Development - 0.49 0.49
Other non financial assets 768.94 113.63 882.57
Total assets 715,193.39 53,234.24 762,864.77

Notes

Particulars
Liabilities
Derivative financial instruments 1,326.58 3,471.39 4,797.97
Trade payables 1,570.20 - 1,570.20
Other Payables 3.46 - 3.46
Debt Securities 36,688.89 95,301.54 131,990.43
Borrowings (other than debt securities) 268,565.98 140,318.48 408,884.46
Deposits 2,106.50 128.75 2,235.26
- Adjustment on account of EIR - - -
Subordinated Liabilities 459.47 2,544.91 3,004.38
Lease Liabilities 58.39 101.41 159.80
Other Financial liabilities 10,830.35 2,493.13 13,323.48
Non-financial Liabilities
Current tax liabilities (net) 1,418.15 - 1,418.15
Provisions 3,265.16 414.67 3,679.83
Deferred tax liabilities (net) 0.82 165.54 166.36
Other non-financial liabilities 1,081.18 59.18 1,140.36
Total Liabilities 327,375.14 244,999.00 571,785.79
Net 387,818.25 (191,764.76) 191,078.97
Note 40: Change in liabilities arising from financing activities disclosed as per Ind AS 7, Cash flow
statements
As at Exchange Change in fair As at
April 01, 2022 difference value March 31, 2023
Debt Securities 131,740.35 14,225.96 - - 79.48 146,045.79
Borrowings other than debt 408,553.24 (3,896.22) (55.78) 1,254.62 118.72 405,974.58
securities
Deposits 2,235.26 1,143.57 (64.07) - - 3,314.76
Subordinated Liabilities 2,997.33 (459.47) - - 8.69 2,546.55
Total liabilities from financing 545,526.18 11,013.84 (119.85) 1,254.62 206.89 557,881.68
activities
As at Exchange Change in fair As at

April 01, 2021 difference value March 31, 2022
Debt Securities 146,669.90 (14,991.44) - - 61.89 131,740.35
Borrowings other than debt 351,009.78 55,565.48 (645.76) 2,530.40 93.34 408,553.24
securities
Deposits 2,579.53 432.27 (776.53) - - 2,235.26
Subordinated Liabilities 3,706.89 (732.83) - - 23.27 2,997.33
Total liabilities from financing 503,966.10 40,273.48 (1,422.29) 2,530.40 178.50 545,526.18
activities

Consolidated
Financial
Statements
Notes

Note 41: Contingent liabilities, commitments and leasing arrangements
(A) Contingent Liabilities

As at As at
Particulars
March 31, 2023 March 31, 2022
(a) Claims against the Group not acknowledged as debt
(i) Income Tax Demands 446.17 446.25
(ii) Service Tax Demands 4,995.05 4,995.05
(iii) Others 426.97 426.97
(iv) Disputed claims against the Group under litigation not acknowledged as debts 89.77 71.26
(b) Guarantees - Counter Guarantees Provided to Banks 349.42 317.26
(c) Corporate Guarantee issued in favour of National Housing Bank for loan availed by wholly 1,940.91 1,466.41
owned subsidiary M/s Muthoot Homefin (India) Limited [Amount of Guarantee ₹2,750.00
millions (₹2,250.00 millions as at March 31, 2022)]
(d) Others - -
(B) Commitments
As at As at
Particulars
March 31, 2023 March 31, 2022
(i) Estimated amount of contracts remaining to be executed on capital account, net of advances, and 223.46 584.11
not provided for
(ii) Promissory notes 112.37 179.95
(iii) Commitments related to loans sanctioned but undrawn 9,779.85 18,683.62
(iv) Capital commitments 1.01 3.98
(C) Lease Disclosures
Finance Lease:
The Group has not taken or let out any assets on financial lease.
Operating Lease :
Lease disclosures under Ind AS 116

For the operating lease agreements entered into by the Group which are considered as short term leases under Ind AS 116,
right-of-use asset and lease liability has not been recognised during the year. The lease rental payments for such short
term leases amounting to ₹2,621.18 millions (₹2,434.78 millions for the year ended March 31, 2022) are recognised as
‘Rent’ in the Statement of Profit and Loss. For all other lease arrangements under Ind AS 116, the Group has recognised
right-of-use asset and lease liability.
Lease rentals received for assets let out on operating lease ₹3.10 millions (₹2.53 millions for the year ended March 31,
2022) are recognized as income in the Statement of Profit and Loss under the head ‘Other Income’.

Notes

Maturity Analysis of lease liabilities
As at As at
Particulars
March 31, 2023 March 31, 2022
Less than one year 64.99 58.39
One to five years 87.74 101.41
More than five years 2.84 -
Total 155.57 159.80
Interest on lease liabilities amounting to ₹18.46 millions (₹13.48 millions for the year ended March 31, 2022) are
recognised under Finance Cost in the Statement of Profit and Loss.
Carrying value of Right-of-Use Assets
As at As at
Particulars
March 31, 2023 March 31, 2022
Balance as at April 01, 2022/ April 01, 2021 147.80 170.01
Additions during the year 68.72 77.20
Deductions (0.47) (13.72)
Exchange Gain /(Loss) (2.27) (17.44)
Less: Depreciation charge for the year (71.55) (68.25)
Balance as at March 31, 2023/ March 31, 2022 142.23 147.80
Note 42: Related Party Disclosures
Names of Related Parties

(A) Key Management Personnel (Directors) Designation
1. George Jacob Muthoot Chairman & Whole-time Director
2. George Thomas Muthoot Whole-time Director
3. George Alexander Muthoot Managing Director
4. Alexander George Whole-time Director
5. George Muthoot George Whole-time Director
6. George Muthoot Jacob Whole-time Director
7. George Alexander Whole-time Director
8. Jose Mathew Independent Director
9. Justice (Retd.) Jacob Benjamin Koshy Independent Director
10. Pratip Chaudhuri Independent Director (Retired on August 31, 2022)
11. Vadakkakara Antony George Independent Director
12. Ravindra Pisharody Independent Director
13. Usha Sunny Independent Director
14. Abraham Chacko Independent Director
15. Chamacheril Mohan Abraham Independent Director (w.e.f August 31, 2022)

Consolidated
Financial
Statements
Notes

(B) Enterprises owned or significantly influenced by key management personnel or their relatives (Directors)
1. Muthoot Vehicle & Asset Finance Limited 11. Muthoot Forex Limited
2. Xandari Resorts Private Limited (Formerly known as Muthoot 12. X andari Pearl Beach Resorts Private Limited (Formerly
Leisure And Hospitality Services Private Limited) known as Marari Beach Resorts Private Limited)
3. MGM Muthoot Medical Centre Private Limited 13. Muthoot Health Care Private Limited
4. Muthoot Securities Limited 14. Muthoot Properties & Investments
5. Muthoot Housing & Infrastructure 15. Muthoot Precious Metals Corporation
6. Muthoot Gold Bullion Corporation 16. GMG Associates
7. Muthoot M George Institute of Technology 17. St. Georges Educational Society
8. Emsyne Technologies Private Limited (Formerly known as 18. M.G. George Muthoot Charitable Trust (Formerly known
Muthoot Systems & Technologies Private Limited) as Muthoot M George Charitable Trust)
9. Muthoot Educational Trust 19. Muthoot Finance Education Trust (Tamilnadu)
10. Geem Marketing Services Private Limited (Formerly known as
Muthoot Marketing Service Private Limited)
(C) Relatives of Key Management Personnel (Directors)

Name of Relative Relationship Key Management Personnel
Elizabeth Jacob Spouse George Jacob Muthoot
Reshma Susan Jacob Daughter George Jacob Muthoot
Susan Thomas Spouse George Thomas Muthoot
Anna Thomas, Tania Thomas Daughter George Thomas Muthoot
Anna Alexander Spouse George Alexander Muthoot
Eapen Alexander Son George Alexander Muthoot
Radhika George Verghese, Swathy Eapen Son's wife George Alexander Muthoot
Sara George Mother Alexander George, George Muthoot George
Radhika George Verghese Spouse George Alexander
Leela Zachariah Sister George Alexander Muthoot, George Jacob Muthoot, George
Thomas Muthoot
Sindhu Mohan Spouse Chamacheril Mohan Abraham
(D) Key Management Personnel (other than Directors) Designation

1. Oommen Mammen Kaithayil Chief Financial Officer
2. Rajesh Achutha Warrier Company Secretary

384
Notes


Management Personnel and
Key Management Personnel Relatives of Key Management Key Management Personnel
their relatives are able to Others*
(Directors) Personnel (Directors) (other than Directors)
Particulars exercise significant influence
(Directors)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022

Purchase of Travel Tickets for - - - - - 0.02 - - - -
Company Executives/ Directors/
Customers
Accommodation facilities for - - - - 12.90 7.52 - - - -
Company Executives/ Clients/
Customers
Staff Welfare expense - - - - 0.11 0.18 - - - -
Complementary Medical Health - - - - 0.88 - - - - -
Check Up for Customers/
Employees
Brokerage paid for NCD Public - - - - 5.49 1.24 - - - -
Issue
Professional Charges Paid - - - - 4.50 - - - - -
Advertisement Expenses - - - - - 0.33 - - - -
Expenditure on Corporate - - - - 732.79 568.31 - - - -
Social Responsibility (includes
payments made on behalf of
beneficiaries)
Foreign Currency purchased for - - - - 0.92 0.17 - - - -
travel
Interest paid on Borrowings 444.22 673.85 411.91 505.93 0.24 0.44 - - - -
Interest paid on NCD - - 5.61 0.52 - - - - - -
Interest paid on NCD - Listed 15.30 24.14 5.45 7.48 28.84 31.45 0.09 0.09 0.27 0.27
Directors Remuneration 950.18 815.68 - - - - - - - -
Commission and sitting fee to 14.63 12.99 - - - - - - - -
Non-executive Directors
Salaries and Allowances - - 20.70 41.92 - - 24.17 22.03 - -
Loans accepted 8,279.94 5,751.92 4,927.32 4,910.81 - - - - - -
Loans repaid 10,573.45 7,762.14 6,209.51 2,992.13 2.24 2.05 - - - -
Purchase of Listed NCD of the 3,827.00 1,868.00 3,694.64 300.00 373.81 141.02 - - 5.00 -
Company
Redemption of NCD of the - - 5.00 - - - - - - -
Company
Redemption of Listed NCD of the 2,669.52 245.99 1,502.42 1,038.95 87.09 194.73 - - - -
Company
Rent paid - - 2.09 1.46 26.13 25.26 - - - -
Rent received - - - - 2.26 2.00 - - - -
Rent deposit given - - - - - - - - - -
Rent deposit repaid - - - - 0.20 - - - - -
Dividend paid 3,760.94 3,063.65 2,134.72 2,838.97 - - 1.10 1.91 - -
Commission Received on Money - - - - 3.49 3.99 - - - -
Transfer business
Service Charges Collected - - - - 1.74 1.76 - - - -
Notes
Financial

Statements
Balance outstanding as at the year end: Asset/ (Liability) :

Consolidated

Key Management Personnel Relatives of Key Management Management Personnel and their Key Management Personnel
Others*
(Directors) Personnel (Directors) relatives are able to exercise (other than Directors)
As at As at As at As at As at As at As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Investments in Equity - - - - 392.55 331.92 - - - -
Shares
NCD - - - (5.00) - - - - - -
NCD - Listed (4,346.48) (3,183.49) (4,025.45) (1,827.23) (553.94) (267.23) (1.20) (1.20) (8.00) (3.00)
Security Deposit - - - - (10.00) (10.00) - - - -
Rent Deposit - - - - 13.94 14.14 - - - -
Borrowings (2,976.22) (5,269.73) (3,173.92) (4,456.11) (1.54) (3.78) - - - -
Directors (288.62) (279.93) - - - - - - - -
Remuneration
Payable
Commission payable (9.14) (8.45) - - - - - - - -
to Non-executive
Directors
Interest payable on - - - (1.45) - - - - - -
NCD
Interest payable on - - - - (0.01) (0.02) - - - -
Borrowings
Trade Payables - - - - (0.11) (0.11) - - - -
Loans - - - - - - - - - -
Trade Receivables - - - - 0.28 0.38 - - - -
Amounts (7,620.46) (8,741.60) (7,199.37) (6,289.79) (158.66) 65.62 (1.20) (1.20) (8.00) (3.00)
Other financial assets - - - - 0.17 0.32 - - - -
payable (net) to
related parties
Note
a) Related parties have been identified on the basis of the declaration received by the management and other records available.

385
Notes

Compensation of key management personnel of the Group :
Key management personnel are those individuals who have the authority and responsibility for planning and exercising power
to directly or indirectly control the activities of the Company and its employees. The Company considers the members of the
Board of Directors which include independent directors (and its sub-committees) to be key management personnel for the
purposes of IND AS 24 Related Party Disclosures.
Particulars
March 31, 2023 March 31, 2022
Short–term employee benefits 964.81 828.67
Total 964.81 828.67
The Company has included Key Managerial Personnel defined under Section 2(51) of the Companies Act, 2013 other than
Directors as Key Management Personnel (other than Directors) as per the disclosure requirements under RBI’s Scale Based
Regulation for NBFCs.
Note 43: Fair Value Measurement

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.
Fair Value Hierarchy of financial instruments measured at fair value
I. The following table shows an analysis of financial instruments recorded at fair value
The fair value measurement hierarchy for financial instruments measured at fair value as at March 31, 2023 is
as follows:
Particulars
Investments 45.72 44.24 528.64 618.60

Particulars
Investments 452.03 1,423.63 - 1,875.66
Derivative Financial Instruments (assets) - - - -
The fair value measurement hierarchy for financial instruments measured at fair value as at March 31, 2022 is
as follows:
Particulars
Investments 952.92 179.26 - 1,132.18

Particulars
Investments 630.50 1,329.97 - 1,960.47
Derivative Financial Instruments (assets) - 605.01 - 605.01

Consolidated
Financial
Statements
Notes

Valuation methodologies of financial instruments measured at fair value
Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at
as under :
Investment at fair value through profit and loss

For investment at fair value through profit and loss, valuation is done using quoted prices from active markets at the
measurement date. The equity instruments which are actively traded on public stock exchanges with readily available
active prices on a regular basis are classified as Level 1. Units held in mutual funds are measured based on their published
net asset value (NAV), taking into account redemption and/or other restrictions are generally Level 1.
The fair valuation technique for investments in Security receipts (SRs) by Belstar Microfinance Limited is classified under
Level 3. Since the investment was made in the month of March 2023 and the investment value approximates the net asset
value as at March 31, 2023 as confirmed by the Asset Reconstruction Company (ARC), disclosure of sensitivity of fair
value measurement in unobservable inputs is not considered relevant.
Derivative Financial Instruments (assets/liabilities) at fair value through other comprehensive income
The financial assets/liabilities on derivative contracts has been valued at fair value through other comprehensive income
using closing rate and is classified as Level 2.
Investments at fair value through other comprehensive income

Equity instruments in non-listed entities are initially recognised at transaction price and re-measured as per fair
valuation report on a case-by-case and classified as Level 2 . The equity instruments which are actively traded on public
stock exchanges with readily available active prices on a regular basis are classified as Level 1.
II. The following tables show the reconciliation of the opening and closing amounts of Level 3 financial assets and
liabilities measured at fair value:
Issuances and Transfers Transfers Net Other
As at As at
March 31,2023 Settlements into from interest Comprehensive
April 01, 2022 March 31, 2023
(Net) Level 3 Level 3 income Income
Financial assets at FVOCI
Loans - - - - - - -
Financial assets at FVTPL
Investment - 528.64 - - - - 528.64
Issuances and Transfers Transfers Net Other

As at As at
March 31,2022 Settlements into from interest Comprehensive
April 01, 2021 March 31, 2022
(Net) Level 3 Level 3 income Income
Financial assets at FVOCI
Loans 1,034.45 (1,016.56) - - - (17.89) -
Financial assets at FVTPL
Investment - - - - - - -

Notes

Fair value of financial instruments not measured at fair value
Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial instruments that
are initially measured at fair value and subsequently carried at amortised cost in the financial statements.
Financial Assets
Cash and cash equivalents 1 77,701.83 100,358.14 77,701.83 100,358.14
Bank Balance other than above 1 2,654.76 2,791.47 2,654.76 2,791.47
Trade receivables 3 98.95 70.09 98.95 70.09
Loans 3 705,543.84 645,276.41 705,543.84 645,276.41
Investments 3 1,088.24 264.36 1,088.24 264.36
Investments 1 1,874.62 1,876.06 1,808.12 1,843.08
Other Financial assets 3 3,453.00 2,807.28 3,453.00 2,807.28
Total Financial Assets 792,415.24 753,443.81 792,348.74 753,410.83
Trade Payable 3 2,158.50 1,572.38 2,158.50 1,572.38
Debt Securities 2 146,045.79 131,740.35 146,909.34 136,387.70
Borrowings (other than debt securities) 2 405,974.58 408,553.24 405,974.58 408,553.24
Deposits 2 3,314.76 2,235.26 3,314.76 2,235.26
Subordinated Liabilities 2 2,546.55 2,997.33 2,546.55 2,997.33
Other Financial liabilities 3 12,576.39 13,323.48 12,576.39 13,323.48
Total Financial Liabilities 572,616.57 560,422.04 573,480.12 565,069.39
Valuation methodologies of financial instruments Fair values of portfolios are calculated using a portfolio-
not measured at fair value based approach, grouping loans as far as possible into
homogenous groups based on similar characteristics i.e.,
Short-term financial assets and liabilities type of loan. The respective company then calculates and
For financial assets and financial liabilities that have extrapolates the fair value to the entire portfolio using
a short-term maturity (less than twelve months), effective interest rate model that incorporate interest
the carrying amounts, which are net of impairment, rate estimates considering all significant characteristics
are a reasonable approximation of their fair value. of the loans. The credit risk is applied as a top-side
Such instruments include: cash and cash equivalents, adjustment based on the collective impairment model
trade receivables, balances other than cash and incorporating probability of defaults and loss given
cash equivalents and trade payables without a defaults. Hence, the carrying amount of such financial
specific maturity. assets at amortised cost net of impairment loss allowance
is of reasonable approximation of their fair value.
Loans and advances to customers

The fair values of loans and receivables are estimated Investments- at amortised cost
by discounted cash flow models that incorporate For Government Securities,the market value of the
assumptions for credit risks, probability of default and respective Government stock as on the date of reporting
loss given default estimates. Since comparable data is has been considered for fair value computations.
not available, Credit risk is derived using, historical
experience, management view and other information
used in its collective impairment models.

Consolidated
Financial
Statements
Notes

Debt Securities customers and investments in debt securities that are an
The fair value of debt securities is estimated by a asset position. The Group considers all elements of credit
discounted cash flow model incorporating interest risk exposure such as counterparty default risk, risk of
rate estimates from market observable data such as not taking collateral against loans, geographical risk and
secondary prices for its traded debt itself. sector risk for risk management purposes. The Group
also follow a systematic methodology in the opening
of new branches, which takes into account factors such
Financial liabilities at amortised cost as demand for credit in the area; income and market
The fair values of financial liabilities held-to-maturity potential; and socio-economic and law and order risks in
(financial liabilities other than trade payables and debt the proposed area.
securities) are estimated using effective interest rate
model based on contractual cash flows using actual
I. Policies and procedures for credit risk for different
yields. Since the cost of borrowing on the reporting
products
date is not expected to be significantly different from
the actual yield considered under effective interest The Group addresses credit risk by following different
rate model, the carrying value of financial liabilities at processes for different products:
amortised cost is considered a reasonable approximation
of their fair value. a) Gold Loan
a) Credit risk on Gold loan is considerably reduced as
Note 44: Risk Management collateral is Gold ornaments which can be easily
Risk is an integral part of the Group’s business and sound liquidated and there is only a distant possibility
risk management is critical to the success. Further, the Group of losses due to adequate margin of 25% or more
is exposed to risks that are particular to its lending and the retained while disbursing the loan. Credit risk
environment within which it operates and primarily includes is further reduced through a quick but careful
credit, liquidity and market risks. The companies in the Group collateral appraisal and loan approval process.
has a risk management policy which covers risk associated Hence overall, the credit risk is normally low.
with the financial assets like loans, investments, cash and cash
equivalents, other receivables, etc. and financial liabilities b) Sanctioning powers for Gold Loans is delegated to
like borrowings, debt securities, subordinate liabilities, trade various authorities at branches/controlling offices.
and other payables. The risk management policy is approved Sanctioning power is used only for granting loans
by the Board of Directors. for legally permitted purposes. The maximum Loan
to Value does not exceed the limit stipulated by the
The Group has an elaborate process for risk management. Reserve Bank of India under any circumstances.
Major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a c) Gold ornaments brought for pledge is the primary
continuing basis. The Group is generally exposed to credit responsibility of Branch Manager. Branch
risk, liquidity risk, market risk and operational risk. executives should enquire with the customers
about the ownership of the ornaments being
pledged for loan and the loan should be granted
A. Credit Risk only after they are convinced about the genuineness
Credit risk is the risk that a customer or counterparty of the customer and his capacity to own that much
will default on its contractual obligations resulting in quantity of gold. In addition to the above, customers
financial loss to the Group. The Group’s major income are also required to sign a declaration of ownership
generating activity is gold loan, housing loan, receivables of ornaments offered as security for the loan. Extra
through financing activity, vehicle loan, personal loans care is taken if the gold jewellery brought for pledge
and others. Therefore credit risk is a principal risk. by any customer at any one time or cumulatively
Credit risk mainly arises from loans and advances to is more than 20 gm. The declaration should also

Notes

contain an explanation specifically as to how the Risk assessment and measurement
ownership was vested with the customer. Group is having a robust risk assessment framework
to address each of the identified risks. The following
d) Auctions are conducted as per the Auction Policy is the framework implemented in order to ensure
of the Group and the guidelines issued by Reserve completeness and robustness of the risk assessment for
Bank of India. Auction is generally conducted housing loan and receivables under financing activity.
before loan amount plus interest exceeds realizable
value of gold. After reasonable time is given to the • Selection of client base - Adequate due diligence is
customers for release after loan becomes overdue carried out for selection of customers.
and exhausting all efforts for persuasive recovery,
• Credit assessment - credit rating and credit
auction is resorted to as the last measure in
bureau check.
unavoidable cases. Group has the right to recover
dues remaining evenafter set off of amount received • Follow up and regular monitoring of the group.
on auctions from the customer. Any excess received
on auctions are refunded to the customer. Risk Mitigation
The following risk mitigation measures have been
e) In case of loans other than Gold Loan, loans are suggested at each stage of loan life cycle:
given whether with primary/collateral security,
like secured loans or without any primary/ • Loan Origination - site screening, independent visit
collateral security like unsecured loans, more than by manager, adequate training to officers.
ordinary care is taken such that loans are granted
• Loan underwriting - Risk rating, independent
only to persons/firms/companies of repute with
assessment, etc.
credit worthiness, future cash flows to repay the
loan and track record. • Loan Pre and Post Disbursement - disbursement at
the branch premises and in the bank account only,
tracking to avoid misuse of funds.
b) Housing loan and Vehicle loan
The credit risk management policy of the Group seeks • Loan monitoring - credit officers to attend group
to have following controls and key metrics that allows meeting, reminder of payment of EMI’s on time, etc.
credit risks to be identified, assessed, monitored and • Loan collection and recovery - monitor repayments,
reported in a timely and efficient manner in compliance confirmation of balances.
with regulatory requirements:
c) Receivables under financing activity
• Standardize the process of identifying new risks and
designing appropriate controls for these risks. Risk Identification
• Minimize losses due to defaults or untimely payments Credit risk may originate in one or multiple of following
by borrowers. ways mentioned below:
• Maintain an appropriate credit administration and
loan review system. • Adverse selection of members for group formation eg.
(bogus members, defaulters, etc.).
• Establish metrics for portfolio monitoring.
• Design appropriate credit risk mitigation techniques. • Adverse selection of groups for undertaking lending
activity (unknown members due to geographical
vicinity, etc.).

Consolidated
Financial
Statements
Notes

• Gap in credit assessment of borrower’s credit Risk Mitigation
worthiness (Failure to collect KYC documents, verify • Loan Origination - site screening, independent visit
residential address, assess income source, etc. by manager, adequate training to officers.
• Undue Influence of Animator/Representative on • Loan underwriting - Risk rating, independent
group members (misuses of savings of group, etc.). assessment, etc.
• Sanction of higher loan amount. • Loan Pre and Post Disbursement - disbursement at
• Improper use of loan amount than the the branch premises and in the bank account only,
designated activity. tracking to avoid misuse of funds.
• Over-concentration in any geography/branch/ • Loan monitoring - credit officers to attend group

zone etc. meeting, reminder of payment of EMI on time, etc.
• Change in the savings pattern/meeting pattern of • Loan collection and recovery - monitor repayments,
group post availing loan (eg. failure of members confirmation of balances.
to deposit minimum savings amount each month,
absence of members from meetings, etc.). II. Impairment assessment
Definition of default and cure

Risk assessment and measurement
The Group considers a financial instrument defaulted
Group is having a robust risk assessment framework
and therefore stage 3 (credit - impaired) for ECL
to address each of the identified risks. The following
calculations in all cases when the borrower becomes
is the framework implemented in order to ensure
90 days past due on its contractual payments.
completeness and robustness of the risk assessment.
As a part of a qualitative assessment of whether a
customer is in default, the Group also considers a
• Selection of client base for group formation - Adequate
variety of instances that may indicate unlikeness to pay.
due diligence is carried out for selection of women
When such event occurs, the Group carefully considers
borrowers who are then brought together for SHG
whether the event should result in treating the customer
formation. (eg. members with same level of income,
as defaulted and therefore assessed as stage 3 for
only one member from family, annual per capita
ECL calculations.
income, etc.).
• Adequate Training and Knowledge of SHG operations. It is the Group’s policy to consider a financial instrument
as ‘cured’ and therefore re-classified out of Stage 3 only
• Credit assessment - credit rating and credit
when none of the default criterias have been present.
bureau check.
The decision whether to classify an asset as Stage 2 or
• Follow up and regular monitoring of the Group. Stage 1 once cured depends on the updated credit grade,
at the time of the cure, and whether this indicates there
has been a significant increase in credit risk compared to
initial recognition.
Group’s internal credit rating grades and staging criteria for loans are as follows:
Loans Days past
Rating Stages
due (DPD)
High grade Not yet due Stage 1
Standard grade 1-30 DPD Stage 1
Sub-standard grade 31-60 DPD Stage 2
Past due but not impaired 61-90 DPD Stage 2
Impaired 91 DPD or More Stage 3

Notes

Exposure at Default (EAD) the year. When estimating ECLs on a collective basis for
The Exposure at Default is an estimate of the exposure group of similar assets , the group applies same principles
at a future default date, considering expected changes for assessing whether there has been a significant
in the exposure after the reporting date, including increase in credit risk since initial recognition.
repayments of principal and interest, whether scheduled
by contract or otherwise, expected drawdowns on B. Liquidity Risk
committed facilities, and accrued interest.
Liquidity risk refers to the risk that the Group may
not meet its financial obligations. Liquidity risk arises
Probability of Default (PD) due to the unavailability of adequate funds at an
The Probability of Default is an estimate of the likelihood appropriate cost or tenure. The objective of liquidity
of default over a given time horizon. For Stage 1 financial risk management, is to maintain sufficient liquidity
assets, the Group assesses the possible default events and ensure that funds are available for use as per
within 12 months for the calculation of the 12 month requirements. The Group consistently generates
ECL. For Stage 2 and Stage 3 financial assets, the sufficient cash flows from operating and financial
exposure at default is considered for over the lifetime of activities to meet its financial obligations as and when
the instruments. The Group uses historical information they fall due. The Group mobilises funds from multiple
where available to determine PD. Considering the sources, including from banks, financial institutions and
different products and schemes, the Group has bifurcated capital markets to maintain a healthy mix of sources.
its loan portfolio into various pools. PD is calculated The focus is on diversifying fund raising sources,
using Incremental 91 DPD approach considering fresh managing interest rate risks and maintaining a strong
slippage using historical information. Where historical relationship with banks, financial institutions, mutual
information is not available , the PD/default rates as funds, insurance companies, other domestic and foreign
stated by external reporting agencies is considered. financial institutions and rating agencies to ensure that
credit concerns are addressed and thereby liquidity risk
Based on its review of macro-economic developments is well addressed.
and economic outlook, the Group has assessed that
no adjustment is required for temporary overlays to The maturity schedule for all financial liabilities and
determine qualitative impact on its PD’s as at March 31, assets are regularly reviewed and monitored. The
2023 and March 31, 2022. companies in the Group has an asset liability management
(ALM) policy and ALM Committee to review and monitor
the liquidity risk and ensure the compliance with the
Loss Given Default (LGD) prescribed regulatory requirement. The ALM Policy
LGD is the estimated loss that the Group might suffer prescribes the detailed guidelines for managing the
if the borrower defaults. The Group determines its liquidity risk.
recovery (net present value ) by analysing the recovery
trends, borrower rating, collateral value and expected
The table below provide details regarding the
proceeds from sale of asset. contractual maturities of significant financial assets
and liabilities (including balances on account of
The LGD rates have been computed internally based on Inter-company transactions) of the Company, BML,
the discounted recoveries in default accounts that are MHIL, MML and AAF as on:-
closed / written off / repossessed and upgrade during

Notes
Financial
Maturity pattern of assets and liabilities as on March 31, 2023 :

Statements

Consolidated

month months months months 1 year years years to ALM
Derivative Financial Instruments 3.05 26.27 53.22 1,815.98 23.21 - - - - 1,921.73
Payables 2,068.61 425.01 364.63 615.34 1,348.95 334.13 132.16 - - 5,288.83
Debt Securities 12,297.49 1,387.84 10,152.58 1,474.46 30,608.11 70,766.09 12,607.55 6,360.65 (155.21) 145,499.56
Borrowings (other than Debt Securities) 6,999.70 5,392.25 51,572.08 107,605.59 127,767.92 101,393.68 11,453.74 631.78 (130.51) 412,686.23
Deposits - - - - - - - - - -
Subordinated Liabilities 230.39 - - 387.10 236.00 1,189.67 647.67 - (4.29) 2,686.54
Financial assets
Other Financial liabilities 4,577.24 562.51 867.69 587.11 1,803.88 1,218.05 695.98 1.29 - 10,313.75
Cash and cash equivalents 77,010.77 246.74 - - 51.43 - - - - 77,308.94

Bank Balance other than Cash and cash 106.87 6.73 0.17 66.55 228.89 350.63 12.91 - - 772.75
equivalents
Derivative Financial Instruments - - - - - - - - - -
Receivables 22.77 - - 0.90 - - - - - 23.67
Loans 137,023.99 100,528.47 81,348.36 160,800.25 165,358.15 36,660.98 25,340.16 4,108.89 (347.71) 710,821.54
Investments 917.16 2.37 22.71 16.81 14.42 568.46 - 4,908.43 - 6,450.36
Other Financial assets 536.43 12.60 10.77 32.77 71.36 1,227.80 240.11 121.81 - 2,253.65

393
394
Notes
Maturity pattern of assets and liabilities as on March 31, 2022 :


month months months months 1 year years years to ALM
Derivative Financial Instruments 25.90 - - 54.30 1,246.38 3,471.39 - - - 4,797.97

Payables 1,194.60 2.83 1.06 1.42 318.74 - - - - 1,518.65
Debt Securities 2,771.90 3,569.36 1,635.97 17,999.56 10,712.09 78,410.52 11,572.59 5,318.44 (250.08) 131,740.35
Borrowings (other than Debt Securities) 28,686.94 15,698.03 58,060.51 47,317.57 118,803.47 131,144.14 8,448.31 725.49 (331.22) 408,553.24
Deposits 692.73 500.02 32.28 317.91 563.57 108.37 20.38 - - 2,235.26
Subordinated Liabilities - - - - 459.47 1,022.06 1,023.69 499.16 (7.05) 2,997.33
Financial assets
Other Financial liabilities 3,887.77 866.78 1,029.92 2,247.29 1,802.03 1,879.96 391.54 212.38 - 12,317.67
Cash and cash equivalents 72,570.29 21,183.21 5,668.61 - 2.31 - - - - 99,424.42

Bank Balance other than Cash and cash 434.28 256.90 9.42 83.48 794.84 409.74 15.60 - - 2,004.26
equivalents
Derivative Financial Instruments - - - - 605.01 - - - - 605.01
Receivables 22.47 - - 2.44 - - - - - 24.91
Loans 112,109.35 76,902.83 65,619.32 162,271.93 191,824.73 34,299.10 3,037.09 4,879.16 (5,667.25) 645,276.26
Investments 70.00 280.93 196.97 714.53 90.00 89.26 - 3,781.37 - 5,223.06
Other Financial assets 302.80 22.14 18.39 31.80 66.33 1,165.16 245.08 277.99 - 2,129.69
Consolidated
Financial
Statements
Notes

C. Market Risk
Market Risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of
changes in market factor. Such changes in the values of financial instruments may result from changes in the interest
rates, credit, liquidity, and other market changes. The objective of market risk management is to avoid excessive exposure
of our earnings and equity to loss and reduce our exposure to the volatility inherent in financial instruments. The Group
is exposed to four types of market risk as follows:
(a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group is subject to interest rate risk, primarily since it lends to customers at fixed
rates and for maturity periods shorter than the funding sources. Majority of our borrowings are at fixed rates . However,
borrowings at floating rates gives rise to interest rate risk. Interest rates are highly sensitive to many factors beyond
control, including the monetary policies of the Reserve Bank of India, domestic and international economic and political
conditions, inflation and other factors. In order to manage interest rate risk, the Group seek to optimize borrowing profile
between short-term and long-term loans. The Group adopts funding strategies to ensure diversified resource-raising
options to minimize cost and maximize stability of funds. Assets and liabilities are categorized into various time buckets
based on their maturities and Asset Liability Management Committee supervises an interest rate sensitivity report
periodically for assessment of interest rate risks. The Interest Rate Risk is mitigated by availing funds at very competitive
rates through diversified borrowings and for different tenors.
During the year , Group has undertaken derivative transactions for hedging interest rate risk on certain domestic currency
exposures linked to external benchmark through Interest Rate Swaps as below:
As at As at
Particulars
March 31, 2023 March 31, 2022
Domestic Currency Exposure 6,000.00 -
The following table demonstrates the sensitivity to a reasonably possible change in the interest rates on the portion
of borrowings affected. With all other variables held constant, the profit before taxes affected through the impact on
floating rate borrowings are as follows:

Effect on Effect on
Statement of Statement of
Particulars Profit and Loss Profit and Loss
for the year for the year
2022-23 2021-22
1% increase in interest rates 2,582.41 2,400.21
1% decrease in interest rates (2,582.41) (2,400.21)

Effect on Effect on
2022-23 2021-22
0.50% increase in interest rates (202.00) (150.59)
0.50% decrease in interest rates 202.00 150.59

Notes

Muthoot Money Limited
Effect on Effect on
2022-23 2021-22
1% increase in interest rates 32.67 11.86
1% decrease in interest rates (32.67) (11.86)
Muthoot Homefin (India) Limited

Effect on Effect on
2022-23 2021-22
1% increase in interest rates 70.33 97.33
1% decrease in interest rates (70.33) (97.33)
(b) Price Risk
For Gold loan

Sudden fall in the gold price and fall in the value of the pledged gold ornaments can result in some of the customers to
default if the loan amount and interest exceeds the market value of gold. This risk is in part mitigated by a minimum 25%
margin retained on the value of jewellery for the purpose of calculation of the loan amount. Further, we appraise the
jewellery collateral solely based on the weight of its gold content, excluding weight and value of the stone studded in the
jewellery. In addition, the sentimental value of the gold jewellery to the customers may induce repayment and redemption
of the collateral even if the value of gold ornaments falls below the value of the repayment amount. An occasional decrease
in gold prices will not increase price risk significantly on account of our adequate collateral security margins. However, a
sustained decrease in the market price of gold can additionally cause a decrease in the size of our loan portfolio and our
interest income.
Equity price risk is the risk that the fair value of equities decrease as the result of changes in level of equity indices and
individual stocks. The trading equity price risk exposure arises from equity securities classified at FVTPL and the non-
trading equity price risk exposure arises from equity securities classified at FVOCI.
A 10% increase/(decrease) in the equity price ( traded and non-traded) would have the impact as follows:
Increase / (Decrease) Sensitivity of profit Sensitivity of other

Particulars
in percentage or loss comprehensive income
As at March 31, 2023 10/(10) 0.00/(0.00) 187.57/(187.57)
As at March 31, 2022 10/(10) 0.00/(0.00) 196.05/(196.05)
For Housing loan and receivables under financing activity

The Group’s exposure to price risk is not material and it is primarily on account of investment of temporary treasury
surplus in the highly liquid debt funds for very short durations. The Group has a board approved policy of investing its
surplus funds in highly rated debt mutual funds and other instruments having insignificant price risk, not being equity
funds/ risk bearing instruments.

Consolidated
Financial
Statements
Notes

(c) Prepayment risk
Prepayment risk is the risk that the Group will incur a financial loss because its customers and counterparties repay or
request repayment earlier than expected, such as fixed rate loans like ours when interest rates fall.
(d) Foreign currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Foreign currency risk for the Company arises majorly on account of foreign currency borrowings. The Company’s foreign
currency exposures are managed in accordance with its Foreign Exchange Risk Management Policy which has been
approved by its Board of Directors. The Company has hedged its foreign currency risk on its foreign currency borrowings
as on March 31, 2023 by entering into cross currency swaps and forward contracts with the intention of covering the
entire term of foreign currency exposure . The counterparties for such hedge transactions are banks.
The Company’s exposure on account of Foreign Currency Borrowings at the end of the reporting period expressed in
Indian Rupees are as follows:
Foreign As at As at
Particulars
currency March 31, 2023 March 31, 2022
External Commercial Borrowings - Senior Secured Notes (principal amount USD 45,359.21 76,815.78
and interest accrued but not due on reporting date)
Since the foreign currency exposure is completely hedged by equivalent derivative instrument, there will not be any
significant impact on sensitivity analysis due to the possible change in the exchange rates where all other variables are
held constant. On the date of maturity of the derivative instrument, considering the hedging for the entire term of the
foreign currency exposure, the sensitivity of profit and loss to changes in the exchange rates will be Nil.
D. Operational and business risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls
fail to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or
lead to financial loss. The Group cannot expect to eliminate all operational risks, but it endeavours to manage these risks
through a control framework and by monitoring and responding to potential risks. Controls include effective segregation
of duties, access, authorisation and reconciliation procedures, staff education and assessment processes, including the
use of internal audit.

Notes

Note 45: Disclosure with regard to dues to Micro Enterprises and Small Enterprises
Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006 are given as follows:
Particulars March 31, 2023 March 31, 2022
a) Principal amount due 7.20 -

Interest due on the above - -
b) Interest paid during the period beyond the appointed day - -
c) Amount of payment made to the supplier beyond the appointed day during the accounting year - -
d) Amount of interest due and payable for the period of delay in making payment without adding - -
the interest specified under the Act.
e) Amount of interest accrued and remaining unpaid at the end of the period - -
f) 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 deductible expenditure under section 23 of the Act.
Note 46: Dividend remitted in foreign currency

Dividend remitted in foreign currency during the year ended March 31, 2023 is ₹3.42 Millions and ₹1.24 Millions in March
31, 2022.
Note 47: Frauds during the year

During the year , frauds committed by employees and customers of the Group amounted to ₹52.41 million (March 31, 2022:
₹44.17 million) which has been recovered /written off / provided for. Of the above, fraud by employees of the Group amounted
to ₹39.72 million (March 31, 2022: ₹6.55 million).
Note 48: Corporate Social Responsibility (CSR)

The gross amount required to be spent by the respective companies in the Group for CSR activities undertaken in accordance
with Schedule VII and as per Section 135 of the Companies Act, 2013 is ₹984.51 million (March 31, 2022: ₹841.63 million) and
the total amount spent ( including amount spent by foreign subsidiary - AAF ) is ₹993.05 million (March 31, 2022: ₹845.96
million) as detailed below:
Sl Amount required
Particulars Amount spent Amount unspent*
No. to be spent
i) MFL 957.45 964.40 22.83
ii) BML 16.43 16.43 -
iii) MHIL 4.39 4.39 -
iv) MIBPL 6.24 6.24 -
v) MAMPL NA 0.85 -
vi) AAF NA 0.74 NA
984.51 993.05 22.83
There is no shortfall in the CSR amount required to be spent by the group as per section 135(5) of the Act for the financial year
ended March 31, 2023.

Consolidated
Financial
Statements
Notes

The Group although was not required to spend under the provisions of Section 135 of Company’s Act, 2013 for the financial
year ended March 31, 2023, has spent ₹7.80 millions in excess of requirement provided under sub-section (5) of section 135 of
Company’s Act, 2013. The Group has decided to carry forward the same to set off against future requirement to spend under
sub-section (5) of section 135 of Company’s Act, 2013 up to immediate succeeding three financial years. The Board of Directors
has passed a resolution to that effect. The details of Pre Spent CSR is detailed below :
Sl No. Particulars Amount Pre spent

i) MFL 6.95
ii) MAMPL 0.85
CSR activities include activities for employment enhancing vocational skills, social business projects, promotion of education,
promoting and supporting technology and innovations, promoting sports activities, medical assistance to poor patients,
environmental protection activities and activities for sustainable development, and various other activities including
assistance and support in disaster management activities which are specified under Schedule VII of the Companies Act, 2013.
Note 49: Utilization of proceeds of Public Issue of Non - Convertible Debentures

The Group has during the year raised through public issue ₹13233.59 million of Secured Redeemable Non-Convertible
Debentures. As at March 31, 2023, the Group has utilised the entire proceeds of the public issue, net of issue expenses in
accordance with the objects stated in the offer documents.
Note 50: Share based payments

Pursuant to approval by the shareholders at their meeting held on September 27, 2013, the Company has established “Muthoot
ESOP 2013” scheme administered by the ESOP Committee of Board of Directors. The following options were granted as on
March 31, 2023. The fair value of the share options is estimated at the grant date using a Black-Scholes pricing model, taking
into account the terms and conditions upon which the share options were granted. However, the above performance condition
is only considered in determining the number of instruments that will ultimately vest.
I The Company has formulated various share-based payment schemes for its employees. Details of all
grants in operation during the year ended March 31, 2023 are as given below:
Date of grant November 09, 2013 November 09, 2013
Date of Board approval November 09, 2013 November 09, 2013
Method of settlement Equity settled Equity settled
No. of equity shares for an option One option - One share One option - One share
No. of options granted 3,711,200 1,706,700
Exercise price per option (in ₹) ₹50 ₹50
Vesting period 1-5 years 2-6 years
Manner of vesting In a graded manner over a 5 year In a graded manner over a 6 year
period with 10%,15%,20%,25% period with 10%,15%,20%,25%
and 30% of the grants vesting in and 30% of the grants vesting in
each year commencing from the each year commencing from the
end of 12 months from the date end of 24 months from the date
of grant of grant

Notes

A) Fixed Vesting period is as follows on following dates :-
1st vesting "12 months from the date of grant (for Grant A & November 09, 2014 November 09, 2015
Loyalty)" and "24 months from the date of grant (for Grant B)
2nd vesting "On expiry of one year from the 1st vesting date November 09, 2015 November 09, 2016
3rd vesting "On expiry of one year from the 2nd vesting date November 09, 2016 November 09, 2017
4th vesting "On expiry of one year from the 3rd vesting date November 09, 2017 November 09, 2018
5th vesting "On expiry of one year from the 4th vesting date November 09, 2018 November 09, 2019
B) Conditional Vesting Service only - graded vesting Service only - graded vesting
Exercise period 8 Years

Scheme Name Grant A Grant B Grant A
Date of grant July 08, 2014 July 08, 2014 March 06, 2015
Date of Board approval July 08, 2014 July 08, 2014 March 06, 2015
10%,15%,20%,25% and 10%,15%,20%,25% and 10%,15%,20%,25% and
30% of the grants vesting in 30% of the grants vesting 30% of the grants vesting
each year commencing from in each year commencing in each year commencing
the end of 12 months from from the end of 24 months from the end of 12 months
the date of grant from the date of grant from the date of grant
following dates :-
1st vesting "12 months from the date of July 08, 2015 July 08, 2016 March 06, 2016
grant (for Grant A & Loyalty)" and "24
months from the date of grant (for Grant
B)"
2nd vesting "On expiry of one year from July 08, 2016 July 08, 2017 March 06, 2017
the 1st vesting date"
3rd vesting "On expiry of one year from July 08, 2017 July 08, 2018 March 06, 2018
the 2nd vesting date"
4th vesting "On expiry of one year from July 08, 2018 July 08, 2019 March 06, 2019
the 3rd vesting date"
5th vesting "On expiry of one year from July 08, 2019 July 08, 2020 March 06, 2020
the 4th vesting date"
B) Conditional Vesting Service only - Service only - Service only -
graded vesting graded vesting graded vesting

Consolidated
Financial
Statements
Notes

Date of grant June 27, 2016 June 27, 2016 June 27, 2016
Date of Board approval June 27, 2016 June 27, 2016 June 27, 2016
a 5 year period with a 6 year period with a 2 year period with 50%
10%,15%,20%,25% and 10%,15%,20%,25% and vesting at the end of 12
30% of the grants vesting in 30% of the grants vesting in months from the date of
each year commencing from each year commencing from grant and the remaining
the end of 12 months from the end of 24 months from 50% of the grants vesting at
the date of grant the date of grant the end of 24 months from
the date of grant
following dates :-
1st vesting "12 months from the date of June 27, 2017 June 27, 2018 June 27, 2017
B)"
2nd vesting "On expiry of one year from June 27, 2018 June 27, 2019 June 27, 2018
3rd vesting "On expiry of one year from June 27, 2019 June 27, 2020 -
4th vesting "On expiry of one year from June 27, 2020 June 27, 2021 -
5th vesting "On expiry of one year from June 27, 2021 June 27, 2022 -
Date of grant August 07, 2017 August 07, 2017 August 07, 2017
Date of Board approval August 07, 2017 August 07, 2017 August 07, 2017
a 5 year period with a 6 year period with a 2 year period with 50%
10%,15%,20%,25% and 10%,15%,20%,25% and vesting at the end of 12
30% of the grants vesting 30% of the grants vesting months from the date of
in each year commencing in each year commencing grant and the remaining
from the end of 12 months from the end of 24 months 50% of the grants vesting
from the date of grant from the date of grant at the end of 24 months
from the date of grant

Notes

following dates :-
1st vesting "12 months from the date of August 07, 2018 August 07, 2019 August 07, 2018
B)"
2nd vesting "On expiry of one year from August 07, 2019 August 07, 2020 August 07, 2019
3rd vesting "On expiry of one year from August 07, 2020 August 07, 2021 -
4th vesting "On expiry of one year from August 07, 2021 August 07, 2022 -
5th vesting "On expiry of one year from August 07, 2022 August 07, 2023 -
II Computation of fair value of options granted during the year

The Black-Scholes Model has been used for computing the weighted average fair value considering the following:
Tranche 1
Particulars
Grant A Grant B
Share price on the date of grant (₹) 117.30 117.30
Exercise price (₹) ₹50 ₹50
Expected volatility (%) 57.68% 57.68%
Expected life of options 1.5-5.5 years 2.5-6.5 years
Weighted average contractual life 4 years 5 years
Risk-free interest rate (%) 8.4% - 8.8% p.a. 8.4% - 8.95% p.a.
Expected dividend yield (%) 3.84 % p.a. 3.84 % p.a.
Model used Black-Scholes Model Black-Scholes Model
Fair value per option tranche on grant date (₹) (corresponding ₹68.75 (Nov 9, 2014) ₹70.21 (Nov 9, 2015)
vesting date shown in brackets)
₹70.21 (Nov 9, 2015) ₹71.13 (Nov 9, 2016)
₹71.13 (Nov 9, 2016) ₹71.52 (Nov 9, 2017)
₹71.52 (Nov 9, 2017) ₹71.47 (Nov 9, 2018)
₹71.47 (Nov 9, 2018) ₹71.11 (Nov 9, 2019)

Consolidated
Financial
Statements
Notes

Tranche 2 Tranche 3
Particulars
Risk-free interest rate (%) 8.26% - 8.35% p.a. 8.24% - 8.32% p.a. 7.45% - 7.60 % p.a.
Fair value per option tranche on grant date ₹131.77 (July 8, 2015) ₹130.56 (July 8, 2016) ₹165.61 (Mar 6, 2016)
(₹) (corresponding vesting date shown in
brackets)
₹130.56 (July 8, 2016) ₹129.33 (July 8, 2017) ₹163.16 (Mar 6, 2017)
₹129.33 (July 8, 2017) ₹127.91 (July 8, 2018) ₹160.66 (Mar 6, 2018)
₹127.91 (July 8, 2018) ₹126.26 (July 8, 2019) ₹158.13 (Mar 6, 2019)
₹126.26 (July 8, 2019) ₹124.39 (July 8, 2020) ₹155.57 (Mar 6, 2020)
Tranche 4
Particulars
Fair value per option tranche on grant date ₹226.42 (June 27, 2017) ₹223.87 (June 27, 2018) ₹262.48 (June 27, 2017)
brackets)
₹223.87 (June 27, 2018) ₹221.34 (June 27, 2019) ₹257.37 (June 27, 2018)
₹221.34 (June 27, 2019) ₹218.80 (June 27, 2020) -
₹218.80 (June 27, 2020) ₹216.20 (June 27, 2021) -
₹216.20 (June 27, 2021) ₹213.54 (June 27, 2022) -

Notes

Tranche 5
Particulars
Fair value per option tranche on grant date ₹416.95 (August 7, 2018) ₹413.92 (August 7, 2019) ₹452.31 (August 7, 2018)
brackets)
₹413.92 (August 7, 2019) ₹410.90 (August 7, 2020) ₹447.05 (August 7, 2019)
₹410.90(August 7, 2020) ₹407.88 (August 7, 2021) -
₹407.88(August 7, 2021) ₹404.82 (August 7, 2022) -
₹404.82(August 7, 2022) ₹401.71 (August 7, 2023) -
III Reconciliation of options

Options outstanding at April 1, 2022 - - 1,860 3,000 15,000
Exercised during the year - - - 3,000 15,000
Expired / lapsed during the year - - 1,860 - -
Options outstanding at March 31, 2023 - - - - -
Options exercisable at March 31, 2023 - - - - -
Weighted average share price at the time of exercise* - - - 992.20 1,028.08

Consolidated
Financial
Statements
Notes

Options outstanding at April 1, 2022 22,520 43,645 - 64,925 55,915 -
Expired / lapsed during the year 3,400 10,115 - 3,790 21,250 -
Weighted average remaining contractual life - - - - 0.35 -
(in years)
exercise*

Options outstanding at April 1, 2021 10,295 5,725 2,680 3,340 27,500
Exercised during the year 2,495 2,070 310 340 12,500
Expired / lapsed during the year 7,800 3,655 510 - -
Options outstanding at March 31, 2022 - - 1,860 3,000 15,000
Options exercisable at March 31, 2022 - - 1,860 3,000 15,000
Weighted average share price at the time of exercise* 1,488.51 1,474.72 1,505.05 1,505.05 1,445.25

Options outstanding at April 1, 2021 77,920 81,425 875 115,350 90,705 -
Expired / lapsed during the year 3,095 12,835 875 8,145 22,625 -
Weighted average remaining contractual life - 0.24 - 0.35 0.90 -
(in years)
exercise*
*Disclosure of weighted average share price at the time of exercise is applicable only for plans where there has been an exercise of options in

406
Notes
Note 51: Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial
Statements to Schedule III to the Companies Act, 2013
Net assets, i.e. total assets minus Share in other comprehensive Share in total comprehensive
Share in profit or loss for the
total liabilities as at income for the year ended income for the year ended
year ended March 31, 2023
March 31, 2023 March 31, 2023 March 31, 2023
Name of the entity in the Group As a % of As a % of

As a % of As a % of
consolidated other consolidated total
consolidated net Amount consolidated Amount Amount Amount
comprehensive comprehensive
assets profit/loss
income income
Parent
Subsidiaries
Muthoot Finance Limited 90.96% 201,500.98 94.58% 34,707.52 107.31% 460.00 94.72% 35,167.52
Indian
1. Muthoot Insurance Brokers Private 0.72% 1,588.10 1.26% 463.78 0.26% 1.12 1.25% 464.90
Limited
2. Belstar Micro Finance Limited 2.81% 6,222.59 2.04% 747.54 (1.68%) (7.20) 1.99% 740.34
3. Muthoot Homefin (India) Limited 2.07% 4,574.67 0.28% 103.98 (0.02%) (0.07) 0.28% 103.91
4. Muthoot Money Limited 0.47% 1,038.00 0.01% 2.41 0.09% 0.39 0.01% 2.80
5. Muthoot Asset Management Private 0.52% 1,141.27 0.13% 46.46 - - 0.13% 46.46
Limited
Foreign
6. Muthoot Trustee Private Limited 0.00% 10.22 0.00% 0.27 - - 0.00% 0.27
Non-controlling interests in all subsidiaries

1. Asia Asset Finance PLC, Srilanka 0.26% 581.69 0.14% 51.03 (3.43%) (14.70) 0.10% 36.33
Indian
Foreign
1. Belstar Micro Finance Limited 2.12% 4,700.40 1.51% 555.72 (1.26%) (5.41) 1.48% 550.31
Total 221,528.04 36,697.66 428.67 37,126.33

1. Asia Asset Finance PLC, Srilanka 0.08% 170.12 0.05% 18.95 (1.27%) (5.46) 0.04% 13.49
Note : The amounts stated above have been considered from the respective financial statements of the companies, without adjusting the intercompany transactions.
Consolidated
Financial
Statements
Notes
Note 52: Details of Benami Property Held Note 58: Utilisation of Borrowed funds and Share
No proceedings have been initiated or pending against the premium
Group for holding any benami property under the Benami The Group, as part of its normal business, grants loans
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules and advances, makes investment, accept non-convertible
made thereunder in the financial years ended March 31, 2023 debentures from its customers, other entities and persons
and March 31, 2022. and borrows money from banks, financial institutions, other
entities and persons. These transactions are part of Group’s
normal non-banking finance business, which is conducted
Note 53: Wilful Defaulter
ensuring adherence to all regulatory requirements.
The Group has not been declared as a wilful defaulter by any
bank or financial institution or other lender in the financial We state that no funds have been advanced or loaned or invested
years ended March 31, 2023 and March 31, 2022. (either from borrowed funds or share premium or any other
sources or kind of funds) by the Group to any other persons
Note 54: Relationship with struck off Companies or entities, including foreign entities (“Intermediaries”)
with the understanding, whether recorded in writing or
The Group has no transaction with the companies struck off
otherwise, that the Intermediary shall directly, or indirectly
under section 248 of Companies Act, 2013 or section 560 of
lend or invest in other persons or entities identified in any
Companies Act, 1956.
manner whatsoever by or on behalf of the Group (Ultimate
Beneficiaries) or provide any guarantee, security or the like
Note 55: Registration of Charges or satisfaction to or on behalf of the ultimate beneficiaries.
with Registrar of Companies (ROC)
All charges or satisfaction are registered with ROC within the The Group has not received any funds from any other persons
statutory period for the financial years ended March 31, 2023 or entities, including foreign entities (Funding Party) with the
and March 31, 2022. No charges or satisfactions are yet to be understanding whether recorded in writing or otherwise, that
registered with ROC beyond the statutory period. the Group 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”)
Note 56: Compliance with number of layers of or provide any guarantee, security or the like on behalf of the
companies Ultimate Beneficiaries.
The number of layers prescribed under section 2(87) of the
Companies Act 2013 read with the Companies (Restriction
Note 59: Undisclosed Income
on number of Layers) Rules, 2017, is not applicable to
the company. The Group does not have any transaction that are not recorded
in the books of account but has been surrendered or disclosed
as income during the year in tax assessments under the
Note 57: Compliance with approved Scheme(s) of Income tax Act, 1961 (such as search or survey or any other
Arrangements relevant provision under Income Tax Act 1961) and there was
The Group has not entered into any Scheme of Arrangements no instance of previously unrecorded income as above to be
which requires the approval of the Competent Authority recorded in the books of accounts during the year.
in terms of sections 230 to 237 of the Companies Act,
2013 for the financial years ended March 31, 2023 and
Note 60: Details of Crypto Currency or Virtual
March 31, 2022.
Currency
The Group has not traded or invested in Crypto currency or
Virtual currency during the financial years ended March 31,
2023 and March 31, 2022.

Notes
Note 61: Impact of COVID-19

The global outbreak of Coronavirus (COVID-19) pandemic has not caused any significant impact on the operations and financial
position of the Company for the year and previous year.
Hence in the opinion of the management of the Company, the impairment loss as stated in Note 8 and provision as stated in Note
22.1 is considered adequate.
Note 62: Business combinations and acquisition of non-controlling interests

During the year, the company acquired 1,47,060 shares of Belstar Microfinance Limited(BML) from promoters for a consideration
of ₹50.00 Millions, resulted an increase in company’s stake to 61.01% of BML’s equity share capital. Subsequently BML issued
32,35,295 equity shares to external share holders, by which company’s stake in BML’s equity share capital reduced to 56.97%
as at March 31, 2023 (March 31, 2022: 60.69%).
Note 63: Previous year’s figures have been regrouped/rearranged, wherever necessary to conform to current year’s
classifications/disclosure.

(FRN : 000801S) (FRN : 005374S)
sd/- sd/- sd/- sd/-

sd/- sd/-

Date: May 19, 2023 Date: May 19, 2023

Corporate Information
Board of Directors Registered office Registrar & Transfer Agent

George Jacob Muthoot 2nd Floor, Muthoot Chambers Equity Shares
Chairman & Whole Time Director Opposite Saritha Theatre Complex Link Intime India Private Limited
Banerji Road, Kochi 682 018 Surya, 35, Mayflower Avenue
Kerala, India Behind Senthil Nagar,
Managing Director
CIN: L65910KL1997PLC011300 Sowripalayam Road
George Thomas Muthoot Coimbatore – 641 028
RBI Regn. No: N.16.00167
Whole Time Director Tel: (91 422) – 231 4792, 231 5792
Tel: (91 484) 239 4712
Alexander George Fax: (91 484) 239 6506 Fax: (91 422) – 231 4792
Whole Time Director Email (General) Email: [email protected]
[email protected] Website: www.linkintime.co.in
Whole Time Director Email (Investors)
Listed Non-Convertible Debentures
[email protected]
George Alexander Link Intime India Private Limited
Email (Institutional Investors)
Whole Time Director C-101, 247 Park, L.B.S. Marg,
investorrelations@muthootfinance.
Vikhroli (West), Mumbai - 400 083
George Muthoot Jacob com
Tel: (91 22) 4918 6000
Whole Time Director Website: www.muthootfinance.com
Fax: (91 22) 4918 6060
Abraham Chacko Chief Financial Officer Email: [email protected]
Independent Director Website: www.linkintime.co.in
Oommen K Mammen
Jacob Benjamin Koshy
Independent Director Company Secretary Debenture Trustee (Listed Non-
Rajesh A Convertible Debentures)
Jose Mathew
Independent Director Joint Statutory Auditors IDBI Trusteeship Services Limited
Asian Building, Ground Floor
Chamacheril Mohan Abraham M/s. Elias George & Co.,
17 R, Kamani Marg, Ballard Estate
Independent Director Chartered Accountants,
Mumbai 400 001, India
(Firm Registration No. 000801S)
Ravindra Pisharody Tel: (91 22) 4080 7000
38/1968A, EGC House, HIG Avenue,
Independent Director Fax: (91 22) 6631 1776
Gandhi Nagar, Kochi 682 020
Email: [email protected]
Usha Sunny
Independent Director Website: www.idbitrustee.co.in
M/s. Babu A. Kallivayalil & Co.,
Vadakkakara Antony George Chartered Accountants,
Trustee (Senior Secured Notes)
Independent Director (Firm Registration No. 05374S)
II Floor, Manchu Complex, P T Usha DB Trustees (Hong Kong) Limited
Road, Kochi-682 011 Level 52, International
Commerce Centre
Listing 1 Austin Road West, Kowloon
Equity Shares Hong Kong
National Stock exchange of India
Limited & BSE Limited
Non-convertible Debentures
BSE Limited
Commercial Papers
BSE Limited
Senior Secured Notes

International Securities Market
London Stock Exchange
Muthoot Chambers
Opp Saritha Theatre Complex, Banerji Road, Kochi 682 018
Tel: +91 - 484 - 2396 478/2394
www.muthootfinance.com

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Staying focused.

Annual Report 2022-23

2 Muthoot Finance Limited

Since our inception, we have witnessed multiple economic

The headwinds that marked the year under review also

At Muthoot, however, we are not cut from the same cloth. We

Our ability to stay focused on attaining our goals will be a

Annual Report 2022-23 3

Established in 1887 by Shri Ninan Mathai Mission

We provide access to credit for individuals who possess

Goodwill Ethics Values

4 Muthoot Finance Limited

Annual Report 2022-23 5

Muthoot Finance STATES AND UNION

6 Muthoot Finance Limited

CUSTOMERS SERVED DAILY PAN-INDIA BRANCHES

LOAN ASSETS UNDER MANAGEMENT

Annual Report 2022-23 7

Opportunities we capitalised on:

8 Muthoot Finance Limited

State-wise branch network

Jammu & Kashmir BRANCHES ACROSS INDIA

Rajasthan Uttar Pradesh

Annual Report 2022-23 9

1939 • CRISIL assigned long-term

2001 2010 issue and for H4 billion non-

• Retail loan portfolio crossed • Branch network

• Retail debenture portfolio

• Converted into a Public

10 Muthoot Finance Limited

• Bank credit limit crossed

Annual Report 2022-23 11

• In October 2019, we raised $450

12 Muthoot Finance Limited

Annual Report 2022-23 13

Revenue (H million) Profit after tax (H million)

Net worth (H million) Earnings per share (H)

Gold loan portfolio (H billion) Gold holdings (tonnes)

Average gold loan per branch (H million) Total employees

14 Muthoot Finance Limited

10-year performance review

FY21 FY22 FY23

Capital adequacy (%) 27.39 29.97 31.77

Stage 3 loan assets (%) 0.88 2.99 3.79

Return on assets (%) 7.99 7.24 5.93

Return on equity (%) 27.77 23.55 17.63

Debt-equity (%) 3.02 2.72 2.36

Annual Report 2022-23 15

George Jacob Muthoot

16 Muthoot Finance Limited

supported by the Government’s proactive measures

Annual Report 2022-23 17

18 Muthoot Finance Limited

Annual Report 2022-23 19

Fresh thinking for a

“Innovation has been the bedrock of our

“At Muthoot, we have always upheld the

20 Muthoot Finance Limited

“We have launched Small Business Loans and

“We continuously engage with our