Chola FY20 PDF

July
8, 2020
We request you to kindly take the above on record.
The Secretary The Secretary
National Stock Exchange of India Limited BSE Ltd. Thanking you,
Capital Market – Listing, Exchange Plaza, 5th Floor, 25th Floor, Phiroze Jeejeebhoy Towers
Plot No. C/1, G Block, Bandra‐Kurla Complex, Dalal Street, Fort Yours faithfully,
Bandra (E), Mumbai 400 051 Mumbai 400 001 For Cholamandalam Investment and Finance Company Limited

NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243

P Sujatha
Dear Sir, Company Secretary

Sub: Notice of the 42nd annual general meeting and Annual Report for the financial year 2019‐20 Encl.: As above
Ref: ISIN ‐ INE121A01024

We wish to inform you that the 42nd Annual General Meeting (AGM) of the Company will be held on
Thursday, 30th July, 2020 at 3.30 p.m. IST through Video Conference (VC).

Pursuant to Regulation 34(1) of Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we submit herewith a copy of Annual
Report of the Company along with the Notice of AGM. The copies of annual report and AGM notice
have been sent today to all the shareholders whose email IDs are registered with their Depository
Participant/s (DPs) / KFin Technologies Private Limited (KFIN), the Registrar and Share Transfer Agent
(RTA). The above documents are also uploaded in the websites of the Company,
www.cholamandalam.com and RTA: https://evoting.karvy.com.

The Company vide newspaper publication dated 2nd July, 2020 had informed the shareholders who
have not registered their e‐mail addresses with their DPs or RTA about the registration process for
receipt of annual report, AGM notice and login credentials for participation in the AGM through VC.

The Company is providing remote e‐voting facility to all its members to cast their vote on all businesses
contained in the notice through the e‐voting platform of KFIN and facility for voting by electronic
means in the AGM. The remote e‐voting period commences on Monday, 27th July, 2020 (9:00 a.m. IST)
and ends on Wednesday, 29th July, 2020 (5:00 p.m. IST). During this period, members of the Company,
holding shares either in physical form or in dematerialised form, as on the cut‐off date i.e. 23rd July,
2020 may cast their votes electronically. The voting rights of the members shall be in proportion to the
number of shares held in the Company as on the cut‐off date.

The Company is providing Video Conference facility through KFIN platform for the members to
participate in the AGM. Members may access the facility at https://emeetings.kfintech.com through
the same login credentials provided to them for e‐voting. Further, the detailed instruction for e‐voting,
participation in the AGM through VC and remote e‐voting have been provided in the notice of the
AGM.
5. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION:
RESOLVED THAT pursuant to the provisions of sections 196, 197, 198, 203, schedule V and other applicable provisions,

if any, of the Companies Act, 2013 (the Act) and the rules made there under (including any statutory modification(s) or
Cholamandalam Investment and Finance Company Limited re-enactment thereof for the time being in force) the company hereby approves the appointment, of Mr. Arun Alagappan
Registered Office: “Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai - 600 001. (holding DIN 00291361) as the managing director of the company, by the board of directors (the board), for a period of
Phone: 044 4090 7172; Fax: 044 2534 6464; five years from 15 November, 2019 to 14 November, 2024 (both days inclusive) and be paid remuneration by way of salary,
CIN-L65993TN1978PLC007576 allowances, perquisites, amenities, facilities, incentive and other benefits as detailed below subject to an overall limit of
E-mail ID: [email protected]; Website: www.cholamandalam.com 5% of the net profits of the company for each financial year computed in the manner prescribed in section 197 of the Act:
a. Salary
Notice to Members ` 8,88,660/- per month in the scale of ` 5,90,000/- p.m. to ` 17,50,000/- p.m.
NOTICE is hereby given that the forty second annual general meeting (AGM) of the members of Cholamandalam Investment
Increments to be decided by the nomination and remuneration committee (NRC).
and Finance Company Limited will be held at 3.30 p.m. Indian Standard Time (IST) on Thursday, 30 July, 2020 through video
conference (VC) to transact the following business: b. Allowances / Perquisites / Incentive
ORDINARY BUSINESS: As may be determined by the NRC.
1. To consider and if deemed fit, to pass the following as an ORDINARY RESOLUTION: c. General
RESOLVED THAT the board’s report, the statement of profit and loss and the cash flow statement for the year ended i. In the event of inadequacy of profits in any financial year, the remuneration by way of salary, allowances, perquisites,
31 March, 2020 and the balance sheet as at that date, including the consolidated financial statements, together with the amenities, facilities, incentive and other benefits to Mr. Alagappan as may be determined by the board or NRC, be
independent auditors’ reports thereon be and are hereby considered, approved and adopted. paid in accordance with section II of part II of Schedule V of the Act and rules made there under or any statutory
modification or re-enactment thereof.
ii. Perquisites shall be valued in terms of actual expenditure incurred by the company in providing the benefits. However,
RESOLVED THAT the interim dividend of 50% approved by the board of directors on 12 December, 2019 on the

in cases where the actual amount of expenditure cannot be ascertained with reasonable accuracy (including car
outstanding equity shares of ` 2/- each of the company for the year ended 31 March, 2020 and paid to those equity
provided for official and personal purposes and loans) the perquisites shall be valued as per income tax rules.
members whose names appeared in the register of members as on 24 December, 2019 being the record date fixed
iii. The aggregate remuneration (including salary, allowances, perquisites and incentive) payable to Mr. Alagappan for
for the purpose and second interim dividend of 35% approved by the board of directors on 26 February, 2020 on the
any financial year shall be subject to an overall ceiling of 5% of the net profits of the company for that financial year
outstanding equity shares of ` 2/- each of the company for the year ended 31 March, 2020 and paid to those equity
computed in the manner prescribed under the Act.
members whose names appeared in the register of members as on 5 March, 2020 being the record date fixed for the
purpose be and are hereby confirmed as final dividend. iv. Incentive shall be determined by the NRC based on the company’s scheme in force from time to time and subject to
achievement of such performance parameters as may be stipulated by the board / NRC.
v. Mr. Alagappan will not be entitled to any sitting fees for attending meetings of the board or of any committee thereof.
RESOLVED THAT Mr. M.M. Murugappan (DIN 00170478), who retires by rotation and being eligible has offered himself
vi. Mr. Alagappan will be subject to all other service conditions as applicable to any other employee of the company.
for re-appointment, be and is hereby re-appointed as a director of the company liable to retire by rotation.
SPECIAL BUSINESS: RESOLVED FURTHER THAT the board of directors of the company including NRC, be and is hereby authorised to do all

such acts, deeds and things as may be deemed necessary, proper, desirable or expedient to give effect to this resolution
including alteration and variation in such terms of appointment and remuneration so as to not exceed the limits specified
RESOLVED THAT pursuant to the provisions of section 149, 150, 152, 161, schedule IV and other applicable provisions, if
in schedule V of the Act as may be deemed to be in the best interest of the company.
any, of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) or re-enactment
thereof for the time being in force) and applicable provisions of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and the Articles of Association of the RESOLVED THAT pursuant to the provisions of sections 196, 197, 198, 203, schedule V and other applicable provisions, if any,

company, Ms. Bhama Krishnamurthy (DIN 02196839), an additional director, holding office up to the date of this annual of the Companies Act, 2013 (the Act) and the rules made there under (including any statutory modification(s) or re-enactment
general meeting be and is hereby appointed as an independent director of the company not liable to retire by rotation, thereof for the time being in force) the company hereby approves the appointment, of Mr. Ravindra Kumar Kundu (holding
to hold office for a term of five consecutive years from 31 July, 2019 to 30 July, 2024 (both days inclusive). DIN 07337155) as the executive director of the company, by the board of directors (the board), for a period of five years from
23 January, 2020 to 22 January, 2025 (both days inclusive) and be paid remuneration by way of salary, allowances, perquisites,
amenities, facilities, incentive and other benefits as detailed below subject to an overall limit of 5% of the net profits of the
company for each financial year computed in the manner prescribed in section 197 of the Act:
1 2
a. Salary most beneficial to the company including rate of interest, tenure and security cover thereof, the consideration for the issue,
` 6,70,920/- per month in the scale of ` 6,50,000/- p.m. to ` 15,00,000/- p.m. Increments to be decided by the nomination
utilisation of the issue proceeds and all matters connected with or incidental thereto.
and remuneration committee (NRC). RESOLVED FURTHER THAT the board of directors of the company (including any committee thereof ), be and is hereby

b. Allowances / Perquisites / Incentive authorised to do all such acts, deeds and things and give such directions and further to execute such documents, deeds,
instruments and writings as may be deemed necessary, proper, desirable or expedient to give effect to this resolution.
As may be determined by the NRC.
By Order of the board
c. General
i. In the event of absence or inadequacy of profits in any financial year, the remuneration by way of salary, allowances,
Place : Chennai P. Sujatha
perquisites, amenities, facilities, incentive and retirement benefits to Mr. Ravindra Kumar Kundu as may be determined
Date : 3 June, 2020 Company Secretary
by the Board or NRC be paid in accordance with section II of part II of Schedule V of the Act and rules made there under
or any statutory modification or re-enactment thereof.
ii. Perquisites shall be valued in terms of actual expenditure incurred by the company in providing benefit to the employees. NOTES:
However, in cases where the actual amount of expenditure cannot be ascertained with reasonable accuracy (including 1. Pursuant to the general circular numbers 14, 17 and 20/2020 issued by the Ministry of Corporate Affairs (MCA) and
car provided for official and personal purposes and loans) the perquisites shall be valued as per income tax rules. circular number SEBI/HO/CFD/CMD1/CIR/P/2020/79 issued by the Securities and Exchange Board of India (SEBI)
iii. The aggregate remuneration (including salary, allowances, perquisites, incentive and other benefits) payable to (“the Circulars”), companies are allowed to hold AGM through VC. In compliance with the Circulars, the AGM of the
Mr. Ravindra Kumar Kundu for any financial year shall be subject to an overall ceiling of 5% of the net profits of the company is being held through VC.
company for that financial year computed in the manner prescribed under the Act. 2. A member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his / her
iv. Incentive shall be determined by the NRC based on the company’s scheme in force from time to time. behalf and the proxy need not be a member of the company. Since the AGM is being held through VC, the facility
for appointment of proxies by the members will not be available. Hence, proxy form and attendance slip are not
v. Mr. Ravindra Kumar Kundu will not be entitled to any sitting fees for attending meetings of the board or of any
attached to this notice
committee thereof.
3. Corporate / institutional shareholders are required to upload in the e-voting portal, the scanned certified true copy
vi. Mr. Ravindra Kumar Kundu will be subject to all other service conditions as applicable to any other employee of the
(PDF Format) of the board resolution / authority letter etc., together with attested specimen signature(s) of the
company.
duly authorised representative(s) or alternatively to e-mail, to the scrutiniser at e-mail, [email protected] with
RESOLVED FURTHER THAT the board of directors of the company including NRC, be and is hereby authorised to do all
a copy marked [email protected]. The scanned image of the above mentioned documents should be in the
such acts, deeds and things as may be deemed necessary, proper, desirable or expedient to give effect to this resolution naming format “Chola - 42nd AGM”.
including alteration and variation in such terms of appointment and remuneration so as to not exceed the limits specified
4. The business set out in the notice will be transacted through remote electronic voting system and the company is also
in schedule V of the Act as may be deemed to be in the best interest of the company.
providing facility for voting by electronic means in the AGM held through VC. Detailed instructions and other information
7. To consider and if deemed fit, to pass the following as a SPECIAL RESOLUTION: relating to access and participation in the AGM, voting in the AGM and remote e-voting is given as an annexure to this notice.
RESOLVED THAT pursuant to the provisions of sections 42, 71 and other applicable provisions, if any, of the Companies Act,
5. Information as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
2013 read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 and the Companies (Share Capital and Regulations) in respect of appointment / re-appointment of directors is furnished and forms a part of the notice.
Debentures) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) and
6. The explanatory statement pursuant to section 102 of the Companies Act, 2013 (“the Act”) in respect of businesses set out
in accordance with the provisions of Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
above in resolution nos. 4, 5, 6 & 7 is annexed.
2008, the rules, regulations, guidelines and circulars, RBI directions as amended from time to time, the Memorandum and
Articles of Association of the company and subject to such other requirements as may be prescribed by regulatory authorities 7.
All correspondence relating to change of address, e-mail ID, transfer / transmission of shares, issue of duplicate
from time to time, consent of the members of the company be and is hereby accorded to offer, issue and allot, in one or share certificates, bank mandates and all other matters relating to the shareholding in the company may be made to
more series or tranches, secured and unsecured non-convertible debentures on a private placement basis during the period KFin Technologies Private Limited (KFIN), the registrar and share transfer agent (RTA). The members holding shares in
commencing from the date of the forty second annual general meeting until the conclusion of the forty third annual general dematerialised form may send such communication to their respective depository participant/s (DPs).
meeting, up to an amount not exceeding ` 30,000 crores within the overall borrowing limits of the company, as approved 8. As an eco-friendly measure intending to benefit the environment and society at large, we request you to be a part of
by the members, on such terms and conditions and at such times at par or at such premium as may be decided by the board the e-initiative and register your e-mail address to receive all communication and documents including annual reports
of directors of the company (including committees thereof ), from time to time, to such person or persons, including one from time to time in electronic form. Members holding shares in dematerialised form, may send such communication
or more companies, bodies corporate(s), statutory corporations, commercial banks, lending agencies, financial institutions, to their respective DPs and those holding shares in physical form, may send such communication to RTA. In compliance
insurance companies, mutual funds, pension / provident funds and individuals, as the case may be or such other person / with the Circulars, the notice of the AGM and annual report for FY 2020 are sent only through electronic mode to all those
persons as the board of directors of the company (including committees thereof ) may determine and consider proper and shareholders whose email addresses are registered with the RTA / DPs.
3 4
9. Members may note that the notice of the AGM and the annual report will also be available on the company’s website, ANNEXURE TO THE NOTICE
www.cholamandalam.com, website of RTA: https://evoting.karvy.com/public/Downloads.aspx and on the websites of A. EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013:
stock exchanges: www.bseindia.com and www.nseindia.com. For any communication, the members may send requests to
Item No.4 - Appointment of Ms. Bhama Krishnamurthy as an independent director:
the company’s e-mail id: [email protected].
Pursuant to the provisions of section 161 of the Companies Act, 2013 (the Act) and based on the recommendation of
10. Members can avail the facility of nomination in respect of shares held by them in physical form pursuant to the provisions the nomination and remuneration committee, Ms. Bhama Krishnamurthy (holding DIN 02196839) was appointed as
of section 72 of the Act. Members desiring to avail this facility may send their nomination in the prescribed form no. SH-13, an additional director of the company effective 31 July, 2019 and holds office up to the date of this AGM. Details of her
duly filled in to the RTA. The prescribed form can be obtained from the RTA / DPs as well as downloaded from the company’s qualification, experience, expertise and the information pursuant to regulation 36(3) of Listing Regulations and Secretarial
Standards on general meetings are disclosed herein as an annexure to this statement. The company has received a notice
website, www.cholamandalam.com.
in writing from a member under the provisions of section 160 of the Act proposing the candidature of Ms. Krishnamurthy
11. The company has transferred the unclaimed or un-encashed dividends for financial years up to 2012 and unclaimed shares as a director. Ms. Krishnamurthy has given a declaration to the board that she meets the criteria of independence as
to the Investor Education and Protection Fund (IEPF) established by the Central Government. The company transfers the provided under section 149 of the Act as well as under applicable provisions of the Listing Regulations. In the opinion
unclaimed or un-encashed dividend to IEPF after the expiry of seven years from the date of transfer to unpaid dividend of the board, Ms. Krishnamurthy fulfills the conditions specified in the Act and rules made there under for appointment
as an independent director (ID). Pursuant to the provisions of section 149 of the Act, an ID shall hold office for a term up
account. Members who have a valid claim to any unclaimed dividends which are not yet transferred are advised to write
to five consecutive years on the board of a company and shall not be liable to retire by rotation. Accordingly, the board
to the company’s RTA immediately. The dividend history, due dates for transfer to IEPF, and the details of unclaimed recommends the appointment of Ms. Krishnamurthy as an ID for a term of five years. In compliance with the provisions
amounts lying with the company in respect of dividends declared since 2013 are available on the website of the company, of section 149 read with schedule IV of the Act and applicable provisions of the Listing Regulations, the appointment of
www.cholamandalam.com. Also, pursuant to section 124(2) of the Act, the company has uploaded details of unpaid and Ms. Krishnamurthy is being placed before the members for their approval.
unclaimed amounts lying with the company in respect of dividends declared in financial year 2019, on the website of the None of the directors, key managerial personnel of the company or their relatives is concerned or interested in the resolution
company. It may be noted that a reminder has been sent for unclaimed / unpaid dividend in respect of those members except Ms. Krishnamurthy.
having unclaimed dividends. Members attention is particularly drawn to the “General Shareholders Information” section of Item No.5 - Appointment of Mr. Arun Alagappan as the managing director:
the annual report in respect of unclaimed / unpaid dividend. The board at its meeting held on 5 November, 2019 had pursuant to the applicable provisions of the Act and based on the
12. SEBI has mandated the submission of the permanent account number (PAN) by every participant in the securities market. recommendation of the nomination and remuneration committee and subject to the approval of the members, approved
the appointment of Mr. Arun Alagappan (holding DIN 00291361) as the managing director of the company for a term of five
Members holding shares in electronic form, are therefore, requested to submit their PAN to their respective DPs. Members
years from 15 November, 2019 to 14 November, 2024 (both days inclusive). As per section 203 of the Act, managing director
holding shares in physical form shall submit their details to RTA.
is a key managerial personnel of the company.
13. Since shares of the company are traded on the stock exchanges compulsorily in demat mode, members holding shares in Mr. Alagappan has been the executive director of the company since 19 August, 2017. Mr. Alagappan has over 20 years of
physical mode are advised to get their shares dematerialised. Effective 1 April, 2019, SEBI has disallowed listed companies experience including 3 years in the company in the areas of financial services industry, retail business, sales and marketing.
from accepting request for transfer of securities which are held in physical form. The shareholders who continue to hold His rich experience in various corporate functions including human resources and commercial function will benefit the
shares in physical form after this date, will not be able to lodge the shares with company / its RTA for further transfer. company.
Shareholders shall mandatorily convert them to demat form if they wish to effect any transfer. Only the requests for Details of his qualification, experience, expertise and the information pursuant to regulation 36(3) of Listing Regulations
and Secretarial Standards on General Meetings are disclosed herein as an annexure to this explanatory statement. The
transmission and transposition of securities in physical form, will be accepted by the company / RTA.
board recommends the appointment of Mr. Alagappan as the managing director for a term of five years and the same is
14. Members desirous of obtaining any information / clarification relating to the accounts may submit their query through being placed before the members for their approval.
KFIN video conferencing platform as mentioned in the instructions annexed to this notice so as to enable the management None of the directors, key managerial personnel of the company or their relatives is concerned or interested in the resolution
to keep the information ready. except Mr. Alagappan.
15. The Register of Directors and Key Managerial Personnel and their shareholding, maintained under section 170 of the Act, Item No.6 - Appointment of Mr. Ravindra Kumar Kundu as the executive director:
and the Register of Contracts or Arrangements in which the directors are interested, maintained under section 189 of the The board at its meeting held on 23 January, 2020 had pursuant to the applicable provisions of the Act and based on the
Act, will be available electronically for inspection by the members during the AGM. All documents referred to in the notice recommendation of the nomination and remuneration committee and subject to the approval of the members, approved
will also be available for electronic inspection by the members up to the date of AGM, i.e. July 30, 2020. Members seeking the appointment of Mr. Ravindra Kumar Kundu (holding DIN 07337155) as the executive director of the company for a term
of five years from 23 January, 2020 to 22 January, 2025 (both days inclusive). As per section 203 of the Act, Mr. Kundu, being
to inspect such documents can send an email to [email protected].
a whole-time director is a key managerial personnel of the company.
By Order of the board
Mr. Kundu joined the company as Senior Executive Marketing in 2000 and handled various functions including credit,
collections before taking up the role of Business Head of Vehicle Finance division of the company. He has over 30 years of
professional experience in automotive and financial services industry including 20 years in the company.
Place : Chennai P. Sujatha
Details of his qualification, experience, expertise and the information pursuant to regulation 36(3) of Listing Regulations
Date : 3 June, 2020 Company Secretary
and Secretarial Standards on General Meetings are disclosed herein as an annexure to this statement. The company has
5 6
received a notice in writing from a member under the provisions of section 160 of the Act proposing the candidature of Name of the director Mr. M.M. Murugappan Ms. Bhama Mr. Arun Alagappan Mr. Ravindra Kumar
Mr. Kundu as a director. Accordingly, the board recommends the appointment of Mr. Kundu as the executive director for a Krishnamurthy Kundu
term of five years and the same is being placed before the members for their approval. Qualification Holds a degree in Holds a Masters in Science Graduate in Commerce, Graduate in Commerce
Bachelor of Technology from Mumbai University. completed the Owner and has completed Post
None of the directors, key managerial personnel of the company or their relatives is concerned or interested in the resolution
in Chemical Engineering President / Management Graduate Programme
except Mr. Kundu. from University of Madras Program at Harvard in Management for
Item No.7 - Issue of securities on a private placement basis: and a Master of Science Business School Senior Executives from
in Chemical Engineering the Kellogg School of
Pursuant to the provisions of section 42 of the Companies Act, 2013 read with rule 14(2)(a) of Companies (Prospectus from University of Management, Indian
and Allotment of Securities) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time Michigan School of Business and
an Executive Programme
being in force), a company offering or making an invitation to subscribe to non-convertible debentures (“NCDs”) on a
in Global Business
private placement basis, is required to obtain the prior approval of the shareholders by way of a special resolution. Such an Management from
approval by way of special resolution can be obtained once a year for all the offers and invitations proposed to be made the Indian Institute of
for such NCDs during the year. The company proposes to borrow up to ` 30,000 crores by way of NCDs during the period Management Calcutta.
from the conclusion of 42nd AGM till the conclusion of the next AGM. The proceeds of the debentures are expected to be Expertise in specific Has over 41 years of She has a career spanning He has over 20 years of He has over 30 years of
utilised for working capital to finance the growth of the lending portfolio of the company in its core businesses, vehicle functional areas experience in the diverse over 35 years in IDBI (now experience including 3 professional experience
finance and home equity. Further, in order to maintain its regulatory capital adequacy requirements, the company would areas including strategy, IDBI Bank) and SIDBI, years in the company in automotive and
planning, governance, an Apex Development in the areas of financial financial services industry
issue NCDs in the form of subordinated debt and perpetual debt instruments from time to time. Accordingly, the approval technology, management Bank for MSMEs in India services industry, retail including 20 years in
of the members is being sought in connection with the aforesaid proposed issue of NCDs. Further, members are requested and leadership. covering almost all business, sales, marketing, the company in various
to authorise the board (including any committee thereof ) to issue NCDs on a private placement basis, as stipulated above areas of development international business, functions including
banking operations and commercial function, credit, collections and
in one or more tranches, within the overall borrowing limits of the company, as approved by the members from time to has varied experience human resources and business of vehicle
time. The board recommends the resolution as set out in item no.7 of the notice for approval of the members. including resource raising credit. finance division.
and management, forex,
None of the directors, key managerial personnel of the company or their relatives is concerned or interested in the
treasury operations,
resolution. credit dispensation
and management, risk
management, credit
By Order of the board function, head of branch
operations and human
resources division.
Place : Chennai P. Sujatha Number of meetings Attended all 7 meetings Attended all 5 meetings Attended all 7 meetings Attended all 3 meetings
Date : 3 June, 2020 Company Secretary of the board attended of the board held during of the board held during during the year. of the board held during
during the year the year. her tenure. his tenure.
Directorships in other 1. Tube Investments of 1. Reliance Industrial 1. Lakshmi Machine 1. Cholamandalam
B. DISCLOSURE UNDER REGULATION 36 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
companies (including India Limited (TII) Infrastructure Limited Works Limited (LMW) Securities Limited
REGULATIONS, 2015 AND SECRETARIAL STANDARDS ON GENERAL MEETINGS foreign companies (RIIL)
2. Cholamandalam 2. Cholamandalam Home 2. White Date Systems
Financial Holdings 2. Five Star Business Finance Limited (CHFL) India Private Limited
Name of the director Mr. M.M. Murugappan Ms. Bhama Mr. Arun Alagappan Mr. Ravindra Kumar Limited (CFHL) Finance Limited 3. Southern India
Krishnamurthy Kundu 3. Cholamandalam MS (FSBFL) Chamber of Commerce
DIN 00170478 02196839 00291361 07337155 General Insurance 3. Muthoot Microfin & Industry
Date of Birth 12 November, 1955 19 December, 1954 19 July, 1976 7 July, 1968 Company Limited Limited (MML) 4. Madras Race Club
(Chola MS) 4. CSB Bank Ltd.,
Date of Appointment 31 May, 2018 - Appointed At the board meeting 19 August 2017 - At the board meeting 5. M A Alagappan
4. Carborundum (Formerly The Catholic Holdings Private
(Initial appointment) as an additional director held on 30 July, 2019, appointed as the held on 23 January, 2020,
Universal Limited Syrian Bank Ltd.) (CSB) Limited
of the company. Ms. Bhama Krishnamurthy executive director of Mr. Ravindra Kumar
(CUMI) 5. Network 18 Media &
Had served the board of was appointed as an the company. Further at Kundu was appointed as
5. Mahindra and Investments Limited
6. Gen Four Properties
the company as a non- additional director, the board meeting held the executive director for
Mahindra Limited (NMIL)
Private Limited
executive director from in the capacity of an on 5 November, 2019, a period of five years with
(M&M)
7. Roca Bathroom
January 2015 till October independent director of Mr. Arun Alagappan immediate effect. 6. Thirumalai Chemicals Products Private
2017 the company with effect was appointed as the 6. Cyient Limited (Cyient) Limited Limited
from 31 July, 2019. managing director for a 7. Coromandel
period of five years with 8. White Data Systems
International Ltd (CIL) India Private Limited
effect from 15 November,
2019. 8. Ambadi Investments
Limited (AIL)
9. Murugappa Organo
Water Solutions Private
Limited
7 8
Name of the director Mr. M.M. Murugappan Ms. Bhama Mr. Arun Alagappan Mr. Ravindra Kumar
Name of the director Mr. M.M. Murugappan Ms. Bhama Mr. Arun Alagappan Mr. Ravindra Kumar
Krishnamurthy Kundu
Krishnamurthy Kundu
10. M. M. Muthiah
No. of shares held in the 21,035 equity shares of Nil 9,50,000 equity shares of 80,235 equity shares of
Research Foundation
company ` 2 each ` 2 each ` 2 each
11. Idea Lab (India)
Inter-se relationship with Nil Nil Nil Nil
Private Limited
any other directors or
12. IIT Madras Research KMP of the company
Park
Details of remuneration Refer corporate Refer corporate Refer item no.5 Refer item no.6
13. Volzhsky Abrasive sought to be paid governance report governance report
Works
Details of remuneration Refer corporate Not Applicable Refer corporate Refer corporate
14. Chennai Willingdon
last drawn governance report governance report governance report
Corporate Foundation
(Director in casual
vacancy) INSTRUCTIONS:
Memberships in board Chairman: Chairperson: Chairman: Nil A. Instructions for the Members for attending the 42nd AGM of the company through VC:
committees of other 1. Stakeholder 1. N
omination and 1. Corporate Social 1. T he company has engaged the services of KFin Technologies Private Limited (KFIN) to provide VC facility, remote e-voting
companies (includes Relationship Remuneration Responsibility
membership details of all and voting in the AGM in a secure manner. Members can attend the AGM through the link https://emeetings.kfintech.com/
Committee - TII, CUMI Committee - CSB Committee - CHFL
committees) & CFHL
by using their remote e-voting credentials.
2. Management Member:
2. Corporate Social Committee - CSB 2. The facility for joining the AGM will be opened 30 minutes before the scheduled time of the meeting on first cum first serve
1. Audit Committee -
Responsibility Member: CHFL basis up to 1000 members. In respect of large shareholders (shareholders holding 2% or more shareholding), promoters,
Committee - CFHL & institutional investors, directors, key managerial personnel, the chairpersons of the audit committee, nomination and
CholaMS 1. A
udit Committee - RIIL, 2. Corporate Social
FSBFL, MML & NMIL Responsibility remuneration committee and stakeholders relationship committee and auditors, the restrictions on number of members
3. Risk Management Committee - LMW will not be applicable.
Committee - CFHL 2. Stakeholders
Relationship 3. Members can participate in the AGM through their desktops / smartphones / laptops etc. However, for better experience and
4. Shares and Debentures Committee - CSB
Committee - TII smooth participation, it is advisable to join the meeting through desktops / laptops with high-speed internet connectivity.
3. C
orporate Social It is recommended to use a stable Wi-Fi or LAN connection.
5. Governance, Responsibility
Nomination and Committee - RIIL, CSB 4. The attendance of the members (members logins) attending the AGM will be counted for the purpose of reckoning the
Remuneration & FSBFL quorum under section 103 of the Act.
Committee - M&M
4. N
omination and B. Procedure for members to join the AGM:
6. Business Committee - Remuneration -
CholaMS Committee - RIIL & Step 1 Access the URL https://emeetings.kfintech.com/
7. Management MML
Step 2 Enter the login credentials (i.e., User ID and password provided for remote e-voting)
Committee - CholaMS 5. R
isk Management
Step 3 Please select the name of the meeting
8. Loans Committee - TII Committee - CSB &
FSBFL Step 4 Click on ‘Video Conference’ option
9. Investment Committee
- CholaMS Step 5 Click on the red square box with a video icon to join the VC
Member:
C. Submission of questions prior to AGM: Members who would like to express their views/raise questions may please
1. Audit Committee -
M&M & Cyient
log into https://emeetings.kfintech.com and click on “Post your Questions” and post their queries/views/questions in the
window provided by mentioning the name, demat account number/folio number, email ID, mobile number. Please note
2. Nomination and
Remuneration
that, questions will be answered only if the member continues to hold the shares as of cut-off date. The facility for posting
Committee - TII, Cyient, questions will be open from 24 July, 2020 at 9 a.m. till 27 July, 2020 at 5 p.m.
CFHL & CholaMS D. Registration as a speaker at the AGM: Members who wish to speak at the AGM may log into https://emeetings.
3. CSR Committee - AIL kfintech.com and click on the ‘Speaker Registration” icon by mentioning their name, demat account number/folio number,
4. Risk Management city, e-mail id and mobile number. The facility for registration as a speaker will be open from 24 July, 2020 at 9 a.m. till
Committee - M&M, 27 July, 2020 at 5 p.m. The company reserves the right to limit the number of members asking questions depending on the
Cyient & CholaMS availability of time at the AGM.
5. Borrowing Committee
E. Instructions for members for e-voting during the AGM session:
- AIL
6. Share Transfer 1. The e-voting “Thumb sign” on the left hand corner of the video screen shall be activated upon instructions of the
Committee - AIL chairman during the AGM proceedings. Shareholders shall click on the same to take them to the “Instapoll” page for
7. R&D Committee - M&M casting their votes.
9 10
2. Members to click on the “Instapoll” icon to reach the resolution page and follow the instructions to vote on the xii. You may then cast your vote by selecting an appropriate option and click on “SUBMIT”.
resolutions. xiii. A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have voted on
3. Only those members, who are present in the AGM and have not cast their vote on the resolutions through remote the resolution, you will not be allowed to modify your vote. During the voting period, members can login any
e-voting, shall be eligible to vote through e-voting system available during the AGM. number of times till they have voted on the resolution(s).
F. Remote e-voting - Instructions b) Members holding shares in dematerialised / physical form whose e-mail Ids are not registered with the RTA /
Pursuant to the provisions of section 108 of the Companies Act, 2013 (the Act) read with rule 20 of the Companies DPs:
(Management and Administration) Rules, 2014 and the listing regulations as amended from time to time, the company is i. Members who have not registered their e-mail address, may provide their e-mail address and mobile number
pleased to offer e-voting facility to members to exercise their votes electronically on all resolutions set forth in the notice to the RTA to their e-mail id [email protected] for receiving the soft copy of the annual report, notice of
convening the AGM scheduled to be held on Thursday, the 30 July, 2020 at 3.30 p.m. AGM and e-voting instructions along with the User ID and password. In case of any queries, members may write
to [email protected]. Members may also access the link https://ris.kfintech.com/email_registration/
The board of directors of the company has appointed Mr. R. Sridharan of M/s. R. Sridharan & Associates, practicing company
and directly register their e-mail address and mobile number for receiving a soft copy of the said documents
secretary, Chennai as the scrutiniser for conducting the remote e-voting and the e-voting process in the AGM in a fair
relating to the AGM.
and transparent manner. In terms of the requirements of the Act and the rules made there under, the company has fixed
23 July, 2020 as the cut-off date. The remote e-voting / voting rights of the members / beneficial owners shall be reckoned ii. E-Voting Event Number - 5353 (EVEN).
on the equity shares held by them as on cut-off date, i.e. 23 July, 2020. iii. Please follow all steps from sl. no. (i) to sl. no. (xiii) above to cast your vote by electronic means.
The remote e-voting facility begins on Monday, the 27 July, 2020 (9:00 a.m. IST) and ends on Wednesday, the 29 July, 2020 Other instructions:
(5:00 p.m. IST). During this period, the members of the company, holding shares either in physical form or in dematerialised
i. In case of any queries, you may refer Help & FAQ section of https://evoting.karvy.com/public/Faq.aspx or call KFIN
form, as on the cut-off date, are entitled to avail the facility to cast their vote through remote e-voting.
on 040-67162222 & Toll-free No. 1800 3454 001.
The remote e-voting will not be allowed beyond the aforesaid date and time and the e-voting module shall be disabled by
ii. You can also update your mobile number and e-mail id in the user profile details of the folio which may be used
KFIN upon expiry of the aforesaid period. Once the vote on a resolution is cast by the member, he shall not be allowed to
for sending future communication(s).
change it subsequently or cast the vote again.
iii. The voting rights of members shall be in proportion to their shares of the paid-up equity share capital of the
The instructions for members voting electronically are as under:
company as on the cut-off date.
a) For members receiving an e-mail from KFIN, e-voting service provider [for members whose e-mail addresses
iv. Any person who acquires shares of the company and becomes a member of the company after dispatch of the
are registered with the RTA / DP(s)]:
notice to the members and holding shares as on the cut-off date of 23 July, 2020, may obtain the login ID and
i. Open your web browser during the voting period and navigate to https://evoting.kfintech.com. password by sending a request at [email protected]. On receipt of user ID and password, please follow the
ii. Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be E-Voting Event steps from sl. no. (i) to sl. no. (xiii) mentioned in point a) above to cast your vote by electronic means. However,
Number - 5353 (EVEN) followed by folio number. In case of demat account, User ID will be your DP ID and Client if you are already registered with KFIN for remote e-voting then you can use your existing user ID and password
ID. However, if you are already registered with KFin for e-voting, you can use your existing User ID and password for casting your vote. If you forget your password, you can reset your password by using “Forgot user details /
for casting your vote. Password” option available on https://evoting.kfintech.com.
iii. After entering these details appropriately, click on “LOGIN”. v. Members who have cast their votes through remote e-voting may also attend the AGM. However, those members
are not entitled to cast their vote again in the AGM.
iv. You will now reach password change menu wherein you are required to mandatorily change your password. The
new password shall comprise of minimum 8 characters with at least one upper case (A - Z), one lower case (a-z), vi. A member can opt for only one mode of voting i.e., either through remote e-voting or voting at the AGM. Thus,
one numeric value (0-9) and a special character (@, #, $, etc.). The system will prompt you to change your password voting facility at the AGM shall be used only by those who have not exercised their right to vote through remote
and update your contact details like mobile number, e-mail ID, etc. on first login. You may also enter a secret e-voting.
question and answer of your choice to retrieve your password in case you forget it. It is strongly recommended vii. The scrutiniser shall immediately after the conclusion of the voting at the general meeting, first count the votes
that you do not share your password with any other person and that you take utmost care to keep your password cast at the meeting, thereafter unblock the votes in the presence of at least two witnesses not in the employment
confidential. of the company and make a consolidated scrutiniser’s report on or before 31 July, 2020 of the total votes cast
v. You need to login again with the new credentials. in favour or against, if any, to the chairman of the company or person authorised by him in writing who shall
countersign the same.
vi. On successful login, the system will prompt you to select the E-voting event.
viii. The results shall be declared after the AGM of the company. The results declared along with the scrutiniser’s
vii. Select the EVENT of Cholamandalam Investment and Finance Company Limited and click on “SUBMIT”. report shall be placed on the company’s website, www.cholamandalam.com and on the website of KFIN,
viii. Now you are ready for e-voting as “Cast Vote” page opens. https://evoting.karvy.com/public/Downloads.aspx - (Select Document Type:Results) after the result is declared
ix. On the voting page, enter the number of shares (which represents the number of votes) as on the cut-off date by the chairman / authorised person and simultaneously communicated to BSE Limited and National Stock
Exchange of India Limited.
under “FOR / AGAINST” or alternatively, you may partially enter any number in “FOR” and partially “AGAINST” but
the total number in “FOR / AGAINST” taken together not exceeding your total shareholding as mentioned herein
above. You may also choose the option ABSTAIN. If the shareholder does not indicate either “FOR” or “AGAINST” it
will be treated as “ABSTAIN” and the shares held will not be counted under either head.
x. Members holding multiple folios / demat accounts shall choose the voting process separately for each folio /
demat accounts.
xi. Voting has to be done for each item of the notice separately. In case you do not desire to cast your vote on any
specific item it will be treated as abstained.
11 12
Note: Across this report, the word ‘Chola’ refers to ‘Cholamandalam Investment and Finance Company Limited.’
Forward-looking statement
In this Annual Report we may have disclosed forward-looking information to enable investors to comprehend our prospects and
take informed investment decisions. This report and other statements - written and oral - that we periodically make, may contain
forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried
wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’,
‘believes’ and words of similar substance in connection with any discussion of future performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our
assumptions. The achievement of results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown
risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual results could vary materially
from those anticipated, estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future
events or otherwise.
Cholamandalam Investment and Finance Company Limited

Annual Report 2019 - 2020
Cholamandalam Investment and Finance Company Limited Annual Report 2019 - 20 Cholamandalam Investment and Finance Company Limited Annual Report 2019 - 20
CONTENTS CORPORATE INFORMATION

CORPORATE OVERVIEW BOARD OF DIRECTORS
04 Corporate Information Mr. M.M. Murugappan

Mr. N. Ramesh Rajan
07 Pan India Presence Mr. Ashok Kumar Barat
Ms. Bhama Krishnamurthy
08 Message From The Chairman Mr. Rohan Verma
Message From The Managing Director Mr. Arun Alagappan
10
Mr. Ravindra Kumar Kundu
16 Board of Directors SECRETARY
18 Business Highlights Ms. P. Sujatha

Business Review Phone: 044 40907172 (B) 40907055 (D)
20
“Alone we can do so little, together we can do so much” Fax: 044 25346464
– Helen Keller 31 CSR Initiatives E-mail: [email protected]
34 Financial Highlights AUDITORS

Chola has embodied the spirit of togetherness in its long journey of over forty years. The very
M/s. S.R. Batliboi & Associates LLP Chartered Accountants
success of the company is by virtue of its long standing relationships with all stakeholders. While it
MANAGEMENT REPORTS 6th & 7th Floor, “A” Block, Tidel Park,
is natural for partners to share in success, it is during uncertain times that Chola feels obliged to
support its stakeholder ecosystem. The challenges posed by a softening economic growth and the (Module 601, 701 & 702)
Covid-19 pandemic have provided Chola with an opportunity to renew this commitment of working 36 Board’s Report No.4 Rajiv Gandhi Salai, Taramani, Chennai - 600 113
together with all its stakeholders. Phone: 044 - 66548100 | Fax: 044 - 22540120
66 Management Discussion and Analysis
Chola has committed itself to financial inclusion, with more than 82% branches in tier II and beyond.
Chola derives strength from its long history of financing First Time Borrowers (FTB) and New To 74 Report on Corporate Governance REGISTERED OFFICE
Credit (NTC) customers in these markets. Chola’s strong market position in its target customer
segments has enabled it to support the automobile manufacturers and their channel partners with General Shareholders Information Dare House, No. 2, N.S.C. Bose Road, Parrys,
86
customised financing solutions during times of liquidity crunch in the market. Chola has grown by Chennai - 600 001
enabling a trustworthy and symbiotic relationship with all its banking partners. Chola has grown by
92 Business Responsibility Report
virtue of sharing its prosperity with its shareholders and investors. Chola’s success over the years CORPORATE IDENTITY NUMBER
has been made possible through tireless contribution of many generations of its employees. Chola
has also acknowledged the role of society in the company’s success by giving back through many of FINANCIAL STATEMENTS L65993TN1978PLC007576
its CSR initiatives.
97 Standalone Financial Statements REGISTRAR & SHARE TRANSFER AGENT
In its stakeholder driven journey, Chola believes that the whole is greater than the sum of the parts.
Amidst the ongoing challenges facing the industry and the economy, Chola will continue to leverage KFin Technologies Private Limited
187 Consolidated Financial Statements
its relationships with stakeholders for enabling mutual success. Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda, Hyderabad - 500 032
266 GLOSSARY Phone: 040 67161514 | Toll-free No.: 1800-345-4001
Fax: 040 23420814
03 04
ABOUT MURUGAPPA GROUP

ABOUT CHOLA
Founded in 1900, the INR 381 Billion (38,105 Crores) Murugappa Group is one of India's leading business conglomerates. The Group
has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group
Cholamandalam Investment and Finance Company Limited (Chola), was incorporated in 1978 as the financial services include Carborundum Universal Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam Investment and Finance Company Ltd.,
arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D.
as a comprehensive financial services provider offering vehicle finance, home equity loans, home loans, SME loans, Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.
wealth management, stock broking and a variety of other financial services to customers.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs,
Chola operates from 1091 branches across India with assets under management above INR 66,943 Crores. The Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies
subsidiaries of Chola are Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile
(SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and
The vision of Chola is to enable customers enter a better life. Chola has a growing clientele of over 11 lakh happy
spanning 6 continents.
customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its
values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are
its corporate ambit - customers, shareholders, employees and society. from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 51,000 employees.
For more details, visit www.murugappa.com

VISION
Enable Customers to Enter a Better Life.

VALUES & BELIEFS
MISSION
The Spirit of Murugappa Group comprises “The Five Lights”, each light
representing one value of the Group.
Customer first : Switch from product focused to Customer focused
Improving Efficiencies : Long term Customer focus requires profitability and sustainability
INTEGRITY: We value professional and personal integrity above all else. We
People Power : People are our Primary Asset. Happier people = Happier Customers achieve our goals by being honest and straightforward with all our
stakeholders. We earn trust with every action, every minute of every day.
PRODUCTS WE OFFER PASSION: We play to win. We have a healthy desire to stretch, to achieve
personal goals and accelerate business growth. We strive constantly to
improve and be energetic in everything that we do.
QUALITY: We take ownership of our work. We unfailingly meet high standards

of quality in both what we do and the way we do it. We take pride in
excellence.
RESPECT: We respect the dignity of every individual. We are open and

transparent with each other. We inspire and enable people to achieve high
standards and challenging goals. We provide everyone equal opportunities to
progress and grow.
RESPONSIBILITY: We are responsible corporate citizens. We believe we can

help make a difference to our environment and change lives for the better. We
will do this in a manner that benefits our size and also reflects our humility.
05 06
MESSAGE FROM
OUR PRESENCE
THE CHAIRMAN
Dear Shareholders,
It is during the times of uncertainty and challenges,
that robust businesses with strong underlying
fundamentals stand out from the rest. The financial
Jammu & Kashmir (5) year 2019-20 has been one such challenging year
for the NBFC industry in India and its allied sectors
Himachal Pradesh (17) including automotive, real estate and MSMEs. The
Punjab (23)
year saw a significant decline in the automotive
Chandigarh (2) Uttarakhand (16) sales across product categories, especially in
Haryana (32) commercial vehicles. The real estate sector and
Delhi (5)
MSMEs were significantly affected towards the
latter half of the year due to a liquidity crunch and
Rajasthan (81) Assam (25) muted demand. The COVID-19 outbreak has
UP (72)
further extended the already underlying
Bihar (42) Meghalaya (3)
Your company challenges.
Mizoram (1) Industry review
Madhya Pradesh (80) Tripura (4) has displayed Owing to multiple headwinds, commercial vehicle
Gujarat (59)
industry closed the year FY 20 with a 29%
commendable
West Bengal (62)
Dadra and Jharkhand (28)
Nagar Haveli (1) Maharashtra (115) de-growth. Despite the expectation of an
Chattisgarh (66) improvement in rural demand due to a good Rabi
Odisha (53) tenacity in the face crop, the outbreak of COVID-19 has led to
restricted movement of goods and lesser demand
of adversity. The
Goa (2) in the Light Commercial Vehicles (LCV) segment.
Telangana (35)
Used commercial vehicle sales however, is less
likely to be impacted in FY 21 considering lower
Karnataka (60) Andhra Pradesh (48)
company was one market prices, BS VI transitioning an extended time
gap in regularization of the new vehicle supply
Pondicherry (2)
among the first in chain. Domestic Car and Utility vehicle industry
witnessed two consecutive years of decline for the
first time in a decade, with a de-growth of 18% in
Kerala (47)
Tamil Nadu (105)
the industry to FY 20. Tractor industry had a de-growth of 10% in
FY 20 due to weak farm sentiments in the first half
activate a robust of the year, together with erratic rainfall and the
onslaught of COVID-19 during March 2020. A faster
recovery of the rural sector with a good Rabi
Business Continuity harvest, normal monsoon, government support
• 1091 branches across 29 states/Union territories as on 31st March 2020 through farm subsidies and direct income support
• 82% locations are in Tier-III, Tier-IV, Tier V and Tier-VI towns Plan. to farmers is expected to aid tractor demand in
FY 21. Government’s thrust towards doubling farm
income is also expected to drive long term growth
07 08
in this segment. The two-wheelerindustry had a

de-growth of 18% in FY 20 due to weak consumer
For the year FY 20, the total income increased by
24% and the net margin increased by 19% in MESSAGE FROM
THE MANAGING
sentiment, subdued rural demand and an increase comparison with the previous year. As a matter of
in cost of ownership. abundant caution, your company has set aside an
Across the Home Equity business, NBFCs have additional provision of �534 crores (including �30
progressively lost market share in the Loan Against
Property (LAP) product post FY 17 owing to efforts
to contain asset quality deterioration and yield
crores of Macro provision created in FY 19) to meet
any contingencies that may arise. Accordingly, net
profit before tax dropped 14.6% over the previous
DIRECTOR
pressure. Growth rate of NBFCs in the Home Equity year. “If you want to go fast, go alone;
business until FY 21 is expected to be 5 - 7%, almost Looking ahead, the NBFC industry will see a definite If you want to go far, go together.”
half the overall industry growth rate of 13 - 14% stress in the short term. However, I remain - African proverb
during this period. confident of the return to normalcy in Dear Shareholders,
The Indian Housing Finance market is estimated to disbursement growth and gradual reduction of
be �21 lakh crore and grew at around 10 - 14% in stress on the assets by the second half of the The above saying embodies Chola’s approach to
FY 20. The growth in the affordable housing financial year 2021. As a financial engine that promoting togetherness with its stakeholders. The
finance segment, estimated at �3 lakh crore, services the liquidity requirements of the vast continued success of our business over the past
continued to out-pace the overall housing finance majority of rural India, the economic recovery four decades is a testament to our ability to work
market and is estimated to grow between 15 - 20% requires the NBFC industry to stay healthy. with our partners - our employees, our customers,
in the coming years. The national mission of our banking partners, our OEM relationships, our
Your company shall continue to be prudent and
‘Housing for All by 2022’ continues to be at the investors and all our well-wishers. In a world of
forefront of the Government’s initiatives. The
ensure it is adequately prepared to ride the wave
when the economic activities return to normalcy. Foremost dependencies, these relationships have been
significant contributors to the incredible growth
subsidy offered to customers through the PMAY
Your company has over a period of time invested in
objective of the
(Pradhan Mantri Awas Yojana) - CLSS (Credit Linked your company has witnessed. In the coming
upgrading itself digitally, with a strong emphasis on
Subsidy Scheme) has helped in affordable housing months, your company expects to draw strength
ramping up in-house analytics and technology
growth. Further, RERA (Real Estate (Regulations from these strategic partnerships to navigate the
capabilities. These investments will hold the
and Development) Act, 2016) brought in
transparency in housing transactions as well as
company in good stead in a post COVID-19 world. management was challenges ahead.
Addressing the elephant in the room..
allayed customer fears of investing in On behalf of the company and board of directors, I
under-construction projects thus further boosting
demand. Given this environment, the demand for
welcome on board, Ms. Bhama Krishnamurthy. I
also take this opportunity to congratulate Mr. Arun
to ensure your The COVID-19 situation has significantly impacted
businesses across industries. Your company has
affordable housing continues to remain intact and Alagappan on his elevation as managing director undertaken a host of initiatives to mitigate itself
may emerge as a favored asset class for investors. and Mr. Ravindra Kumar Kundu on his appointment
as an executive director of the company. I wish
company provides from the evolving risks. A comprehensive scenario
planning exercise has been conducted to evaluate
Company review
sufficient support
them well and great success in their new roles. the resultant impact of lockdown on
Despite the prevailing challenges, your company disbursements, collections and the dependent
has displayed commendable tenacity in the face of I would like to take this opportunity to thank all our
financial metrics. The company has also
employees for their sustained contribution.
to its employees
adversity. The company was one among the first in re-evaluated the quality of underlying assets and
the industry to activate a robust Business Further, I would like to thank the Board and RBI for
stress tested the same across vehicle finance,
Continuity Plan. Your company had initiated their guidance and support. I would also like to
home equity and home loan businesses. The
and customers at
targeted actions towards financial planning, thank our shareholders, bankers and business
company had proactively reached out to the senior
business strategy realignment, employee partners for their continued support for our
leadership of several automobile OEMs to assess
productivity re-focus, IT enablement and renewed company over the years. We will continue to stay
their strategies and accordingly re-plan our
customer engagement post the onset of COVID-19.
The company continues to exercise significant
focused and work together with all our
stakeholders to ensure we all succeed together. a time of product-wise and geography-wise disbursements.
The credit policies have been revamped to ensure
advantage owing to a strong cash balance and high
uncertainty.
Best wishes, improved sourcing quality. A targeted collection
liquidity.
strategy has been built to identify
M.M. Murugappan low/medium/high risk customer segments and
In the year gone by, your company managed to
increase its closing assets by 11% year over year. manage repayments post the moratorium period.
09 10
The company has also built adequate liquidity to Vehicle Finance than the previous year. However, the Assets Under
offer moratorium to our customers, while not This crisis too, provides an Management (AUM) for Home Equity business
having availed any moratorium from our lenders. In Focus on high yield products and gaining market
opportunity to re-shape your share
managed to grow by 11% for the year FY 20. The
addition, the company has also pruned its COVID-19 pandemic and the resultant cash flow
expenses through multiple cost reduction company’s strategies and increase The overall vehicle finance disbursement was at issues of the customers might increase the stress
measures, the effects of which shall be visible in `23,387 Cr for FY 20. The business was impacted on the collections in the coming quarters. But, a
the coming quarters. While the COVID-19 crisis has our share of business in the markets
due to a severe decline in the auto Industry, across low LTV at origination for Chola’s Home Equity
impacted the ongoing business activities in the we serve. In line with the objective, product segments including HCV, LCV, MLCV, Car portfolio provides adequate security cover against
short term, we are confident of the company’s
and MUV. Higher disbursements from Used, potential delinquencies in this segment.
business returning back to normalcy soon. multiple growth initiatives have
3-wheeler and 2-wheeler products helped the
People focus been accelerated into business to offset the drop in disbursement across In FY 20, the Home Equity business had prioritized
other traditional segments to a large extent. The reimagination of its entire loan processing journey,
Foremost objective of the management was to implementation post COVID-19. industry dynamics coupled with a conscious focus starting from customer onboarding, KYC
ensure your company provides sufficient support verification, credit analysis till disbursement. The
on high yield products resulted in a change of
to its employees and customers at a time of business has successfully developed and rolled out
The year gone by.. disbursement mix for the vehicle finance business.
uncertainty. Your company has launched an a digitized loan journey, resulting in an enhanced
The high yield products, including cars & MUV,
employee assistance program with on-call The financial year 2019-20 saw the economic 2-wheeler, 3-wheeler, tractors and used products Loan Origination System (LOS) and Loan
counselling support, setup zonal helpdesks to activity in the country grow at a tepid pace gained disbursement share at the expense of Management System (LMS).
support insurance claims and hospital admissions, throughout the year. In addition, the closing month
launched multiple touch points to provide commercial vehicles. This enabled the business
of the year faced multiple disruptions, both on the Home Loans
employees with periodic guidance and ramped up to restrict the decline in vehicle finance
supply as well as the demand side. The weakness in disbursements to 6% against FY 19. A key highlight Focus on business expansion
their IT infrastructure to provide all possible
the market was further exaggerated by the for FY 20 has been your company’s ability to
support to employees working from home. The
COVID-19 outburst, thereby shrinking the significantly increase its market share across The Affordable Home Loans business continued to
customers have been provided with moratorium
disbursements for the quarter ended Mar’20 by product categories including LCV, mini-LCV, car increase its disbursements, growing by 30% year on
facility, in line with RBI circulars and Board
36% against the same period in FY 19. Despite & MUV, 3-wheeler, 2-wheeler, tractor and year in FY 20. The business has also witnessed a
approved policy, to ensure they don’t face the
burden of loan repayment during the lockdown having registered a 9% increase in disbursements construction equipment during the year. steady increase in its number of customers, with
phase. until Q3 FY 20 over the last year, the 24,000 live accounts as of Mar’20, an increase of
On the collections front, economic slowdown along 68% over the previous year. The disbursements in
disproportionate drop in disbursements in Q4
Identifying opportunities amidst the crisis with COVID-19 pandemic led to a slowdown across FY20 continued to be focused on business owners
FY 20 had a significant impact on the overall
sectors resulting in lower cash flows among with semi-formal income and significant business
Every crisis presents an opportunity to emerge numbers for the year. The slowing demand coupled
customers during the year. Despite these vintage. The business continues to focus on
stronger, and the current scenario is no different. with an emphasis to maintain asset quality resulted
headwinds, the use of a robust early warning growing deep in the locations present, in order to
As pioneers in the NBFC industry, Chola has always in your company reducing its net disbursements by
system and an aggressive collection strategy has become a significant player in these regions. The
been at the forefront of innovation and change. 4% in the past year.
helped the business manage collections in the
This crisis too, provides an opportunity to re-shape business has also undertaken significant efforts to
your company’s strategies and increase our share Despite the difficulties in sourcing disbursements, current context and restrict the Gross Stage 3
increase efficiency of operations through various
of business in the markets we serve. In line with the your company’s closing assets have grown by 11% assets to 2.91%.
waste reduction initiatives.
objective, multiple growth initiatives have been year on year. Also, notwithstanding stress in overall Home Equity
accelerated into implementation post COVID-19. economy and resultant cashflow issues faced by As far as the industry is concerned, a conducive
These include enhanced use of digital platforms for customers, your company was able to restrict the Preserving asset quality through a conservative environment for demand growth in affordable
disbursements, collections, lead generation, increase in Stage 3 assets (90 days overdue) at 3.8% disbursement strategy housing segment persists. The affordable housing
ramping up our ability to remotely interact of the overall assets as against 2.7% as of Mar’19. segment continues to be extensively supported by
The Home Equity business witnessed a muted
with customers and field assets, enabling government policies, including the national mission
The provision coverage towards these stage 3 growth in disbursements in line with the overall
implementation of the Digital Data Centre and of ‘Housing for All by 2022’, the Pradhan Mantri
assets was increased to 41.5% as against 38% in industry trend. The business had also undertaken a
ramp up in the capabilities of our digital portal Awas Yojana – Credit Linked Subsidy Scheme,
Mar’19, in order to meet any contingencies that conservative underwriting approach to preserve
GaadiBazaar. These interventions shall ensure that implementation of RERA and substantial income
the company is ahead of the curve when the crisis may arise from a slower economic recovery and asset quality during the past year. This resulted in
resultant stress on the recovery process. tax benefits.
settles down and markets return to normal. the overall disbursements for FY 20 being 5% lower
11 12
Positive investor sentiment and strong cash flows This strong liquidity position shall be a significant Your company continues to invest in strengthening
The strong business fundamentals of your company
competitive advantage for your company in the inhouse Technology and Data Analytics capabilities. Chola has proactively managed
coming year. Above and beyond the existing Underwriting
were once again affirmed by overwhelmingly
models, your company has also relied on machine
customers’ and other stakeholders’
successful investment rounds, by both Indian and
overseas investors. Your company raised `1200 Cr learning tools and platforms for continuously experience too through technology
by way of equity infusion in FY20 to strengthen its refining the predictive models across credit, sales,
capital adequacy ratio. Of this `1200 Cr, `900 Cr As of Mar’20, your company ingestion. Digitizing ecosystem
collections and risk functions. The nuanced
was placed through a Qualified Institutional
was strongly placed with capability has helped Chola achieve best in class touchpoints, providing a consistent
Placement (QIP) process, which was oversubscribed systems to predict and strategize for credit risk,
by nearly 4 times by marque investors, both sufficient liquidity by way of omnichannel experience and
field collections efficiency, sales productivity, cross
domestic and overseas. The balance `300 Cr was presenting a bouquet of
liquid cash and sanctioned sell efficiency, audit and fraud monitoring.
subscribed by the promoters.
Significant automation efforts have helped Chola self-service features has been
Given the uncertainties in the market, your undrawn lines, which were launch process automation bots and increase
company was conservative in the year gone by with
adequate to meet our cognitive automation. The operationalization of a central to enhancing the user
respect to maintaining cash reserves. As of Mar’20,
state of the art Digital Data Centre in the coming experience.
your company was strongly placed with sufficient forthcoming commitments year will further strengthen the company’s data
liquidity by way of liquid cash and sanctioned
undrawn lines, which were adequate to meet our for the next 6 months. management capabilities.
On behalf of the Board of Directors, I would like to
forthcoming commitments for the next 6 months. Your company has not restricted its focus on thank our customers, shareholders, banking
technology enablement for its business functions partners, automobile manufacturers, channel
Transforming into a digital and analytics powered company alone. Chola has proactively managed customers’ partners and the RBI for reposing trust and faith in
and other stakeholders’ experience too through us. Last but not the least, I would like to whole
technology ingestion. Digitizing ecosystem heartedly thank my colleagues for going above and
touchpoints, providing a consistent omnichannel beyond their call of duty to support the business.
experience and presenting a bouquet of With your continued support I eagerly look forward
Process automation
self-service features has been central to enhancing to the upcoming year.
the user experience.
Best wishes,
The End to end digital integration with auto OEMs,
enhancing digital integration with channel Arun Alagappan
partners, setting up alternate digital collection
Technology ingestion
modes, evaluating options for remote investigation
Cloud infrastructure
of field assets using video PD, instituting digital KYC
process, etc. are some of the key initiatives
underway to facilitate digitization. In the year gone
by, Chola has also embraced the Cloud
infrastructure across its business functions. The
Digital integration Omnichannel experience shift to cloud technology shall help your company
with a flexi-scalable server infrastructure, a robust
software update platform, ability to collaborate,
better data management abilities and an enterprise
class technology for all business users. The
company shall fully leverage these enhancements
in the coming quarters, in order to amplify our
competitive advantage.
13 14
BOARD OF DIRECTORS
 Is the Executive Chairman of Murugappa Corporate Advisory Board.
 Has over 41 years of experience in diverse areas including strategy and business
development, technology and human resources.
 Holds a Bachelor’s degree in Chemical Engineering from the AC College of Technology,
Enabling Millions Enter A Better Life University of Madras, India and a Master of Science Degree in Chemical Engineering from
the University of Michigan, Ann Arbor, Michigan, USA.
 Is the non-executive chairman of Cholamandalam Financial Holdings Limited,
Cholamandalam MS General Insurance Company Limited, Coromandel International
Limited, Tube Investments of India Limited and Carborundum Universal Limited.
 Is a non-executive director on the boards of Mahindra & Mahindra Ltd. and Cyient Ltd.
 Served on the Board of Governors of IIT Madras, for six years till November 2011 and has
enabled many industry academic partnerships. Now serves on the board of the IIT-Madras
Mr. M.M. Murugappan Research Park and is a mentor to many companies incubated there.
(64 years) DIN: 00170478  Is a Trustee of the Group’s AMM Foundation, actively involved in the development of
Chairman & Non - Executive Director various citizenship initiatives, particularly in education, health care, performing arts and
sports.
 Has been a non - executive director of Chola since 31 May, 2018 and Chairman of the Board
since 26 July, 2018. Prior to that, had served the Board of Chola as a non - executive director
from January, 2015 till October, 2017.
 Graduate in Commerce, a Fellow member of the Institute of Chartered Accountants of India,

Institute of Company Secretaries of India and CPA (Australia). Is a certified Mediator
empaneled with the Ministry of Corporate Affairs, Government of India.
 Has long and distinguished executive career in the corporate sector until retirement in 2016
as the Managing Director and Chief Executive Officer of Forbes & Company Limited. Has
held leadership positions in various Indian and multinational organizations, both in India
and overseas - Hindustan Lever Limited, RPG Group, Pepsi, Electrolux, Telstra, and Heinz.
 Mentors budding entrepreneurs and advises companies on strategy, performance
improvement and governance initiatives.
 Is a director on the Board’s of DCB Bank Limited, Mahindra Intertrade Limited, Bata,
Huhtamaki and Wacker Metroark Chemicals Private Limited (a subsidiary of Wacker Chemie Mr. Ashok Kumar Barat
(63 years) DIN: 00492930
AG). Is the Member of Managing Committee of ASSOCHAM and President of The Council of Independent Director
EU Chambers of Commerce in India.
 Is a past President of the Bombay Chamber of Commerce and Industry.
 Joined the Board of Chola in October, 2017.
 Graduate in Commerce, a fellow member of the Institute of Chartered Accountants of India.

 Has 38 years of experience in the fields of finance, strategy and operations.
 Was the Chairman and Senior Partner, PwC India responsible for overall strategy and
operations of all PwC entities in India. As Chairman & Senior Partner had represented India
on the Global Strategy Council of PwC International and served as a member on PwC’s
Central Cluster led by PwC, UK.
 Is the founder and senior partner of LeapRidge Advisors LLP.
 Is the Chairman of Indo National Limited and is also on the Boards of TTK Healthcare Limited
and and Kineco Limited.
 Joined the Board of Chola in October, 2018.
Mr. N. Ramesh Rajan
(62 years) DIN: 01628318
Independent Director
15 16
 Holds a Bachelor degree in Electrical Engineering from Stanford University and an MBA from BUSINESS HIGHLIGHTS
London Business School.
 Is a recipient of the President’s Award for Academic excellence in Stanford University and (` in crores)
Dean’s List and Distinction Award from London Business School.
 Is an Entrepreneur and a technology thought leader who created India’s very first interactive KEY FIGURES (STANDALONE) IND_AS I_GAAP ( in crores)
mapping portal mapmyindia.com at the age of 19 and has since built many technology
innovations in the maps and location space. PARTICULARS FY20 FY19 FY18 FY17 FY16
 Is a director on the Board of C.E. Info Systems Private Limited (MapmyIndia), India’s leading Branch Network (in nos.) 1091 911 870 709 534
maps, navigation, location technologies and GPS IoT company incorporated in 1992.
 Is the Founder and Chairman of Infidreams Industries Private Limited, focused on creating Disbursement 29,091 30,451 25,114 18,591 16,380
Mr. Rohan Verma
(34 years) DIN: 01797489 social good through technology. Assets Under Management (AUM) 66,943 57,560 43,629 35,110 30,362
Independent Director  Is a member of the FICCI Young Leaders Forum.
Net Income Margin (NIM) 4,061 3,404 2,820 2,430 2,143
 Joined the Board of Chola in March, 2019.
2,483 2,134 1,705 1,416 1,298
 Holds a masters degree in science from Mumbai University (# For FY 20 before considering one time provisions 1,586
1,823 1,401 1,106 871
for COVID impact of Rs. 504.36 Cr.) 2,090#
 Has a career spanning over 35 years in IDBI (now IDBI Bank) and SIDBI, an Apex
(# For FY 20 before considering one time provisions 1,052 1,186 918 719 568
Development Bank for MSMEs in India covering almost all areas of development banking
for COVID impact of Rs. 334.72 Cr (post tax impact)) 1,387#
operations.
 Has varied management and leadership experience in resource raising, forex, treasury Key Ratios (in %) *
operations, credit dispensation and management, risk management, credit function, head NIM 6.8 6.8 7.5 8.6 8.7
of branch operations and human resources division.
Expense Ratio 2.6 2.6 3.0 3.6 3.4
 Is on the boards of various companies including Reliance Industrial Infrastructure Limited,
Network18 Media and Investments Limited, Five Star Business Finance Limited, Muthoot Gross NPA /Gross Stage 3 Assets 3.8 2.7 3.4 4.7 3.5
Microfin Limited, CSB Bank Limited and Thirumalai Chemicals Limited. Ms. Bhama Krishnamurthy
(65 years) DIN: 02196839 2.2 1.7 2.2 3.2 2.1
 Joined the board of Chola in July, 2019. Independent Director
Tier I Capital 15.3 12.4 13.2 13.6 13.3
Tier II Capital 5.4 4.9 5.1 5.0 6.4
 Graduate in Commerce and has completed Owner/President Management Program at
Harvard Business School. Capital Adequacy Ratio 20.7 17.4 18.4 18.6 19.7
 Has over 20 years of experience and has held senior management positions in various units Return on Total Assets - PBT (# For FY 20 before considering 2.7
3.7 3.7 3.9 3.6
of the group viz., Parryware, Tube products of India and lastly as the President of TI Cycles. one time provision of COVID impact) 3.5#
 Was instrumental in forging the alliance with Roca and under his leadership, TI Cycles has Return on Equity (# For Fy 20 before considering 15.2 20.9 19.6 18.0 16.7
grown into an INR 14.8 Billion business, with leading indigenous brands like BSA, Hercules, one time provision of COVID impact) 20.0#
Montra, Lady Bird and affiliation with international brands like Ridley, Bianchi, Cannondale.
Growth Ratios (in %)
 Is on the Boards of Lakshmi Machine Works Limited, Cholamandalam Home Finance
Limited, Roca Bathroom Product Private Limited, White Data Systems India Private Limited AUM Growth 16.3 31.9 24.8 15.6 15.9
Mr. Arun Alagappan and few other Murugappa group Companies.
(43 years) DIN: 00291361 Disbursement Growth -4.5 21.3 35.1 13.5 27.9
Managing Director  Was the Executive Director of the Chola between August, 2017 till 14 November, 2019.
 Appointed as the Managing Director of Chola effective 15 November, 2019. Book Value per Share Growth 26.2 21.1 18.9 17.1 15
 Graduate in Commerce and has completed Post Graduate Programme in Management for Disbursements per Branch 26.7 33.4 28.9 26.2 30.7
Senior Executives from the Kellogg School of Management, Indian School of Business and an NIM per Branch 3.7 3.7 3.2 3.4 4.0
Executive Programme in Global Business Management from the Indian Institute of
Management Calcutta. PAT per Branch (# post tax impact before considering one 1.0 1.3 1.1 1.0 1.1
time provision of COVID impact) 1.3#
 32 years of professional experience in automobile and financial services industry including
20 years in Chola.
 Joined Chola as Senior Executive Marketing in 2000 and handled various functions including Note:
credit, collections before taking up the role of Business Head of Vehicle Finance division of a. * Growth Ratios (in %) for FY18 is as per IGAAP, since for FY 17 Ind AS is not applicable.
Chola. b. Gross Stage 3 Assets and Stage 3 Assets (Net off ECL) is as per Ind AS
c. Numbers are as per Ind AS from FY18 onwards and rest of the years are as per IGAAP, hence not comparable
 Is on the Boards of Cholamandalam Securities Limited and White Data Systems India Private Mr. Ravindra Kumar Kundu d. Refer glossary section for terms and ratios
Limited. (51 years) DIN: 07337155
Executive Director
 Has been the Executive Director of Chola since January, 2020.
17 18
CHOLA - FINANCIAL SUMMARY BUSINESS REVIEW - VEHICLE FINANCE
CAGR: 15% Disbursements YOY: -4% CAGR: 20% Business AUM (Net) YOY: 12%
Diversified Asset Portfolio
(� in crores) (� in crores)
Used Vehicle Multi Utility Vehicle
26% 7%
30,451 29,091 60,549
54,279
25,114
Light Commercial Vehicle Construction Equipment
42,924
18,591
16,380 34,167
29,650 21% 5%
Heavy Commercial Vehicle Mini Light Commercial Vehicle
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 13% 5%
Car 2 Wheeler
CAGR: 25% Profit After Tax YOY: 17% CAGR: 22% Networth YOY: 32% 10% 4%
Tractor 3 Wheeler
8,172 8% 1%
**1,387
1,186 6,176
*335
918 5,098
719 1,052 4,285
3,657
568 Key Differentiators
 Stable player in the market for more than four decades

Awards
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20
 Seasoned and high vintage employees
 Strong dealer and manufacturer relationships
Loan Losses & Provisions % PBT - ROTA %  Diversified in terms of Product, Geography & Customer
segments
 Deeply rooted in the semi urban & rural markets in
addition to urban markets
1.5% **1.5% 3.7% 3.7%
3.4% **3.5%
3.1%  Experienced & In-house Sales, Credit Ops, Collection and
*0.8% Legal feet on street
1.0% *0.8%
0.8%  Quicker Turn Around Time with strong Internal Control
0.6%
Systems
2.7%
0.7%  Customized product offerings for target customers AIMA – 4th National Competition for Managers (NCM) held on
26th February, 2020 at New Delhi.
 Digital led business model offering best in class Team Chola were adjudged as the Champions in the
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 Private Category amongst 30 other Top Private Companies
stakeholder experience from across different sectors of the country.
 Data and Analytics driven Underwriting and Collections
Note: a. * One time provision for COVID 19 + Macro provision
b. ** PAT, Overall loan losses and ROTA-PBT before COVID & Macro provision
 Gaadibazaar – digital platform for buying and selling new
d. Refer glossary section for terms and ratios
and used vehicles
19 20
10
VEHICLE FINANCE - FINANCIAL SUMMARY BUSINESS REVIEW - HOME EQUITY
CAGR: 17% Disbursements YOY: -6% CAGR: 22% Business AUM (Net) YOY: 9%
(� in crores)
(� in crores)
44,206
24,983 40,606
23,387
20,540
31,440
14,471 23,631
12,383 20,100
CAGR: 20% Income YOY: 21% CAGR: 25% PBT YOY: 6%

6,563
**1,342
5,430 1,269
4,190 988 *397

3,609
3,159 682
555
945
LOAN AGAINST PROPERTY

With over 13 years of experience in loan against property business, we take pride in helping our customers realise their
business dreams. We treat every customer relationship as an on-going partnership and have grown stronger together in
Loan Losses & Provisions % PBT - ROTA % this journey. We have consciously focussed on reorienting our business model towards improved customer engagement.
By embracing digital tools like online account management, digital on-boarding and verification, etc., we commit to
provide hassle free experience to our customers and channel partners.
**1.8% 3.7%
3.6%
1.7%
3.2% Products Key Differentiators
3.0% **3.1%
1.4%
*0.9% *0.9%  Business loans against property  Quick Turn Around Time
 Balance transfer of existing property loans  Personalized door-step service to customers
0.8% 0.8%
2.2%  Easy accessibility (Pan India presence with 234
0.9% Customer Segment
branches and growing)
Our focus is on the middle socio economic
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 class and self-employed non - professionals.
Note: a. * One time provision for COVID 19 + Macro provision
c. Numbers are as per Ind AS from FY18 onwards and rest of the years are as per IGAAP, hence not comparable Asset Class
d. Refer glossary section for terms and ratios
e. Income and PBT are reported at Business AUM level
Self-occupied residential property
21 22
HOME EQUITY - FINANCIAL SUMMARY BUSINESS REVIEW - HOME LOANS
The Home Loans business is committed to the

CAGR: 1% Disbursements YOY: -5% CAGR: 10% Business AUM (Net) YOY: 11% national mission of ‘Housing for All by 2022’
(� in crores) (� in crores) and has been reaching out to underserved
customers predominately in semi-urban and
rural markets to enable them to achieve their
12,960 dream of entering a better home. 99% of the
3,837 3,662 11,626 portfolio comprises Home Loans and is
3,476
3,174 9,593 10,095 focused to be end-use driven. Our target
3,056
8,852
group remains the Middle Income Group
(MIG) customer. Our average ticket size is
`15 Lakhs with an average LTV of 60% which
reflects the quality of houses and
marketability. 95% of the portfolio comprises
business owners with semi-formal income
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 and significant business vintage buying their
first home. 30% of our customers are first
time borrowers.
Chola enjoys a significant presence in the Tier
CAGR: 7% Income YOY: 19% CAGR: 6% PBT YOY: 10% I run a dairy business. I had never taken a loan before. Chola
II, III, IV towns and cities. In FY 2020, Home
helped me through the entire process and today I am the
(� in crores) (� in crores) Loans were offered across 9 states (Tamil proud owner of this lovely independent house!”
Nadu, Andhra Pradesh, Karnataka, Kerala, -Ms. Selvi, Tiruvannamali, Tamil Nadu
Gujarat, Maharashtra, Rajasthan and
1,478 Chhattisgarh). We have a 5000+ connector
**334 network that facilitates us by passing on leads I am a labour contractor. Chola customized an EMI that was
1,217 1,184 1,247 305 comfortable for me and today my family and I have moved
1,124 and a 500+ Direct Sales Team (Feet on street)
261 *90 into our first home. It’s a dream come true!
221
members to source and offer doorstep
207 -Mr. Naushad, Rajkot, Gujarat
delivery to the customer.
244
Products Key Differentiators
 Home Loans for Self construction  In principle sanction at customer place
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20  Transparent end-to-end digital on-boarding
 Loans for purchase of ready to occupy homes
 Minimal documentation
 Balance transfer of existing home loans  PMAY subsidy upto `2.67 lakhs
Loan Losses & Provisions % PBT - ROTA %  Customized eligibility for salaried and business owners
 Top-Up loans for existing customers
CAGR: 71% Disbursements YOY: 30% CAGR: 85% Business AUM (Net) YOY: 63%
(� in crores)
(� in crores)
3.2%
1.0% 2.8% **2.7%
0.8% 2.3% 1,505 3,125
0.7% **0.7% 2.2%
*0.7%
1,157
*0.7% 1,912
2.0%
0.0% 606
0.0% 984
FY 16 FY 17 FY 18 FY 19 FY 20 325
FY 16 FY 17 FY 18 FY 19 FY 20 518
175 264
Note: a. * One time provision for COVID 19 + Macro provision FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20

d. Refer glossary section for terms and ratios Note: a. Numbers are as per Ind AS from FY18 onwards and rest of the years are as per IGAAP, hence not comparable
e. Income and PBT are reported at Business AUM level b. Refer glossary section for terms and ratios
23 24
OUR SUBSIDIARIES Finance & Treasury – Strength through partnering

CHOLAMANDALAM HOME FINANCE LIMITED (CHFL)
The finance and treasury function plays a pivotal role as it handles the critical activity of bringing funds necessary for
Cholamandalam Home Finance Limited (CHFL) is a IRDAI registered composite corporate agent distributing insurance disbursement and hence growth of the business. During FY 20, this activity assumed greater relevance as there was
products. The Company had made an application to National Housing Bank for registration as a Housing Finance Company large liquidity constraints in the domestic market. Organising funds at the optimum cost levels while balancing asset
(HFC) and currently engaging with the RBI, the new regulator for HFCs to obtain license to operate as HFC. liability management has been a tight rope walk. Apart from this the function also adds value by steering business
partnerships, strengthening investor relationships and becoming a catalyst to drive cost efficiencies within the
CHOLAMANDALAM SECURITIES LIMITED (CSEC)
organisation. Finance function is also responsible for monitoring control effectiveness and data dissemination to
regulators, rating agencies, bankers and other stake holders.
Key Highlights
 Largest equity raise through QIP and Preferential Allotment

 ECB loans of USD 270 Million with IFC and other leading Multi-national banks.
 First INR denominated Tier II Masala Bonds of `400 crores
 Highest ever quantum of Securitisation and Direct assignment of assets
 Business partnering & tie-ups for co-lending with banks
 Augmenting long term funds
 Asset Liability management and reduction in cost of funds
 Partnering with key IT related projects for business alignment.
The finance and treasury function is highly digitalized and hence the move to work from home due to COVID-19
related lockdown was implemented with least disturbance to the teams and without any compromise on the
controls and monitoring process. All systems could be remotely accessed, and all activities could be executed seam-
lessly.
The finance team constantly partners with the business teams in:
a. Evaluating business models with OEMs
b. Co-origination tie-ups with banks
c. Innovation in Cash management processes
Cholamandalam Securities Limited is a wealth management company offering investment solutions to individual clients d. Productivity drive to improve cost efficiencies
and stock broking services to High Networth Individuals and institutional investors, includingmany of the large mutual e. Loss mitigation by identifying focus segments for collection drive of overdue accounts
funds in India. Chola Securities is a member of BSE Limited and National Stock Exchange of India Limited.
f. Strategic plans for long term growth as well as tactical moves to address immediate concern areas.
Products Offered Awards
Awards
Stock Broking Services | Depository Participant Services
Products Distributed
 Mutual Funds
 Life Insurance
 General Insurance
 Bonds & Debentures
 Fixed Deposits
 PMS
 IPO
 ETF
 SIP Chola was awarded Best CFO and Best Investor Relations Professional Awards (All Asia)
NSDL Star Performer Award for 2019
Chola Securities received this award three years in a row in under BFSI category last year awarded by Institutional Investor Group
2017, 2018 & 2019.
25 26
Analytics - Building a strong data driven organisation Enterprise Risk Management - As a value center
Analytics function enables Chola realise the value of the rich data that the company has built from its long market The Enterprise Risk Management (ERM) function works with the businesses and the functions to improve risk return
experience in its businesses and geographies. With this data and experience, the analytics function works with the trade off by
following key objectives:
› Supporting business initiatives that drive profitability
1. Improve the efficiency and quality of customer acquisition › Identify risk areas for mitigation and suggest measures toimplement the same
a. Working closely with the business to implement underwriting scorecards › Involvement in new product design
b. Product reviews on profitability of customer/product and geography › Working closely with business to improve operational efficiencies
c. Pricing of risk and reward › All these are done in coordination with respective cross functional project teams. In this manner this team acts
as a value centre.
d. Process analytics to improve efficiencies in leads and sales pipelines
An enterprise risk governance and compliance system – CURA - has been put in place to improve risk identification,
2. Enhancing the portfolio quality by
assessment and mitigation process across the company. This system is being used jointly by the ERM team along with
a. Credit risk analytics for identifying potential leakages the Internal Audit team.
b. Collections analytics to help reduce delinquent portfolio The company has put in place a cyber security framework to protect the IT assets. The ERM team works with the IT to
c. Cross-sell targeting for increasing customer value support the ISMS committee that supports the development of this framework.
d. Supporting the development of our Gaadi Bazaar portal with suitable analytics interventions on offers and repo To closely monitor the liquidity risk of the company, ERM function participates in the weekly reviews of the Asset Liability
decisions Committee Support Group as well as the monthly ALCO.
3. 360 degree view and single source of data for key metrics by building the Digital Data Centre The company has a well-established Business Continuity Plan (BCP). The ERM function regularly conducts surprise drills
to ensure preparedness in case of disasters. This enabled the company to be prepared for continuing its critical functions
a. Building a data lake to capture and store all source system and non-system data
during the current pandemic situation.
b. Develop data warehouses to manage the business specific requirements
c. Designing dashboards that show key trends and insights
Compliance – Stronger when collaborated together
d. Near real-time monitoring of key metrics
e. Enabling alerts and triggers on key metrics to enhance monitoring and reviewing The turmoil in the financial services industry in the recent times caused by many failures and lapses of financial
institutions has further tightened the regulations and increased the compliance requirements manifold in the financial
services industry. At Chola, stronger collaboration and integration amongst all functions, together with guidance from
Information Technology - Strengthening digital capabilities Company’s Board and senior management make a strong culture of compliance across the organisation. The company
has zero tolerance towards any non-adherence to regulations, policies and procedures. The clarity from top makes it
Digital technology plays a key role not only as an efficiency enabler for on-going business operations but also empowers easier to achieve the compliance goals amid the challenges.
the business to transition towards being a nimble, customer-centric, and data-centric enterprise. Technology will be the Chola has in place a well-defined compliance process, integrated with robust monitoring and reporting mechanism
common fabric spanning businesses and support functions – whether it be delivering efficiency through initiatives like across the business verticals. During the year, the compliance team played a vital role in highest ever infusion of capital
robotic-process automation, customer engagement through solutions like CRM application and across channels in the company by a twin issue through a Qualified Institutional Placement for `900 crores and a preferential allotment
including web, voice, chatbots etc. and being data-driven by setting a common centralized data repository to support the for ` 300 crores. The team also implemented several new compliance initiatives during the year including paperless
risk, analytics, and business decision makers. board meetings, piloted compliance management automation tool as well as completed the process of split of equity
shares of the Company from a face value of ` 10 to ` 2 per share. Sudden proliferation in compliance activities during
Technology-led seamless process delivery will be critical in improving customer experience – through a combination of
the fag-end of the year due to COVID-19 pandemic and its effective management will continue to be the focus area in
paperless interactions; increased digitization through API based automation, agility through cloud & cloud-like
the year to come.
infrastructure & solutions, and improving service delivery & turnaround time through integrations that minimize human
intervention. Similarly, democratisation of data along with improved data quality will help in better analysis and During the year over 18,500 field and other staff spread over 1,000 branches were trained in a systematic manner on
O)
delivery / development of value added products & services. Ultimately the impact of innovation through digital various regulatory updates relevant for the business, know your customer regulations, fair practices code, prevention of
technology is to be seen through the lens of being able to deliver collective value to all customers, stakeholders and insider trading, prevention of sexual harassment and code of conduct for collections. The trainings are conducted in the
employees. form of class room sessions, e-modes and periodical e-mailers.
27 28
Operations - Combining strength of people and technology to deliver experience Human Resources – Building a strong competitive advantage
Financial services sector is undergoing an overarching shift towards an increasingly modular system. Modules of the new In order to enable our businesses to achieve a higher market Key Focus Areas
share / penetration, the key focus areas of Human Resources
financial services value chain would include customised financial products, effective customer service platforms and  Resourcing & talent planning strategies
function for FY 20 were:
robust data and infrastructure platforms for performing back-end operations. The combined strength of the digital and
 Retaining critical talent
the physical have always been a strong winning combination in the area of customer experience. The operations team Resourcing & Talent Planning
 Building capabilities across the organization
strives to keep up with the evolving customer needs by providing consistent and efficient service.
FY 20 recorded a 13% growth in overall headcount of Chola.  Enhancing digital workforce experience
New initiatives aligned with business strategy rolled out during
the year include: Digital platform hiring | Talent pool creation |  Focus on employee health & safety
Key Highlights of 2019-2020
Talent capabilities – Insights | Setting up verticals for Housing
 Enhanced Productivity Finance | Robust mechanism to enhance productivity
- 150 Kaizen projects to improve productivity in processing Retaining Critical Talent - Project Udaan Awards
 Automation & Digitization Drive Project Udaan is a career development initiative enabling
- Computation of pay-out to dealers, brokers etc.  Retention of high performers
- Customer files tracking systems  Creating talent pipelines
- Decentralization of NOCs to branches  Aligning career aspirations
- Developments in Loan Management System (LMS) Building Capabilities
 Delivering Customer Delight Continued focus on developing training content and execution
based on business challenges while exploring newer platforms
- Holistic engagement with the customers like gamification & experiential training interventions. ISO &
- Significant drop in customer complaints lead auditor programs were conducted for Human Resources
& Operations team. Awarded as winner in the Employee Relations & Employee
 Business Continuity during crisis Engagement category (Large Service Industry) at the CII
Learning Ratios for FY 20: National HR Circle Competition
During COVID-19, Operations Team successfully worked with the Risk Team in implementing
the BCP and ensured smooth functioning. Total learning programs – 295 | Total Man-days- 17,810 | Total
Man-hours – 1,42,472
CHOLA CONNECT – A digitization Journey

Awards
A complete HRMS suite CHOLA Connect (web & mobile
versions) was launched in partnership with People Strong.
Live, Learn & Lead!
Alt Worklife | Alt Messenger | Alt Learning – A complete HR

app that helps employees complete daily tasks, communicate,
seek help & learn in a engaging fun way at their convenience.
Employee Engagement
Chola won the second place for Digitization in L&D- HR at
Opinion Polls | Town Hall | Reward & Recognition Programs the CII National HR Circle Competition 2019
Employee Health & Safety
Employee Health & Safety continues to be prime focus at

Chola.
Awards: Chola won the third place at the CII SR Kaizen Competition – 14th Edition,
Chennai and Silver Award in the 2nd National CII Kaizen Competition held at Delhi. Awareness campaigns | Building a culture of Health & Safety |
Continuous employee wellness programs
29 30
Internal Control Systems - Promoting stability Sustainable and community driven water and sanitation projects
An internal control framework, including internal financial controls, encompassing clear delegation of authority and Through Chola CSR initiatives, safe drinking water is provided to communities living in areas which have little or no
standard operating procedures, are available across all business and functions. The Internal Audit function has been access to safe drinking water or the available water is contaminated with high levels of fluoride, than the permissible
playing an integral role in helping Chola to strengthen and maintain solid cultures of compliance. limit in underground water.
Key Focus Areas Area of Implementation
 Balangir, Odisha (Water & Sanitation Facilities In Villages & Schools)

 Rigorous audit calendar spanning multiple business processes
 Independent review of the design and operating effectiveness of internal financial controls  Nanded, Maharashtra (RO Water Purification Systems)
 Internal audit managers are placed across the country to review the effectiveness of the internal controls across branches
 Poondi, Tamilnadu (Community Waste Management)
 Monitoring of internal financial control systems by in-house audit team and by the external auditors
 Risk and control matrices reviewed by internal auditors on a quarterly basis  Karunilam Village, Tamilnadu (Safe & Sustainable Smart Toilets)
Key Achievements
CORPORATE SOCIAL RESPONSIBILITY
 Increase availability of household toilets
Growing Stronger Together Through Environmental Sustainability  Improved access to safe and clean drinking water
Chola believes that sustainable development promotes economic growth, greater social well-being, and protection of  Better awareness on hygiene and sanitation
the environment. Chola’s CSR projects are designed to be sustainable in nature and are implemented across operating  Developed sustainable practices involving community participation
geographies including rural areas. Chola’s CSR efforts are directed towards offering the best path forward for helping  Given empowerment to women by providing access to water and
people and communities to “Enter a Better Life“. toilet facilities helping them maintain hygiene
Focus On Overall Health And Wellbeing Of The Trucking Community

Expanding access to quality education for the underprivileged
Chola’s CSR initiatives have been focused on improving the overall health of the Trucking community through regular
health and eye camps at ‘Transport Nagars’ (Trucker Hubs) mostly along the golden quadrilateral across India. While the Chola has been supporting Education Trusts such as the AID India foundation,
general direction is towards the under-privileged communities, specific reach is towards the trucking communities. Nalandaway and Isha Vidya over the past 5 years for providing quality education to
economically backward sections of the society.
CSR AWARDS
Eye & Health Camps for Trucking Community RAAHI Vision Centres
Reach: 10 STATES | Beneficiaries: 78,188 truckers Reach: Setup 12 Vision Centres
SICCI Rotary - CSR Awards 2020 WORLD CSR DAY CONGRESS & AWARDS
Scholarship Programme Award received for Chola’s CSR contribution Chola awarded “Best Social Media Awareness Campaign
Free Heart Surgery for Children from the Trucking Community towards Creating Sustainable Environment on Road Safety for #JaldiKyaHai by ET NOW
7 free heart surgeries completed for children from Chola supports children from the trucking community that require
trucking communities suffering from Congenital Heart Disease. educational scholarships so that they can continue their education.
31 32
FINANCIAL HIGHLIGHTS
(� in Lakhs)
FINANCIAL YEAR ENDED 2020 2019 2018 2017 2016
Operating Results
Corporate Social Responsibility Total Income 8,65,289 6,99,264 5,47,966 4,66,035 4,19,371
Profit Before Tax (PBT) (for FY 20 before considering one time 2,09,009 1,82,315 1,40,137 1,10,558 87,077
provisions for COVID impact of ₹ 504.36 Cr.)
Profit After Tax (PAT) (for FY 20 before considering one time 1,38,709 1,18,615 91,830 71,874 56,845
provisions for COVID impact of ₹ 334.72 Cr (post tax impact)
Assets
Loans(net) - Ind AS / Receivables under financing 55,40,273 52,62,227 42,25,323 28,41,448 25,91,013
activity - IGAAP
Cash, Bank and Cash Equivalents 6,95,910 3,67,485 88,795 47,064 49,047
Others 1,63,121 1,12,918 94,855 1,70,969 1,48,771
Total Assets 63,99,304 57,42,630 44,08,973 30,59,480 27,88,831
Liabilities and Equity
Borrowings 55,00,543 50,56,674 38,33,033 24,10,910 22,57,622
Others 81,577 68,382 66,126 2,20,078 1,65,468
Equity (in FY 20 Equity Infusion of ₹1,200 Cr QIP and Preferential 8,17,184 6,17,574 5,09,814 4,28,492 3,65,741
allotment)
Total Liabilities 63,99,304 57,42,630 44,08,973 30,59,480 27,88,831
Key Indicators*
Earnings per Equity Share - Basic (₹) 13.39 15.2 11.8 9.2 7.5
Earnings per Equity Share - Diluted (₹) 13.37 15.2 11.7 9.2 7.5
Dividend per Equity Share (%) 85% 65% 65% 55% 45%
Book Value per Equity Share (₹) 99.71 78.99 65.22 54.84 47.32
*Equity shares have been sub-divided into face value of ` 2 per share, consequently previous year figures have been adjusted.
- Numbers are as per Ind AS from FY18 onwards and rest of the years are as per IGAAP, hence not comparable.
33 34
FINANCIAL HIGHLIGHTS
FINANCIAL YEAR ENDED 2015 2014 2013 2012

(� in Lakhs)
2011
Board’s Report
Operating Results
Total Income 3,69,119 3,26,284 2,55,568 1,78,821 1,20,183
Profit Before Tax (PBT) (for FY 20 before considering one time 65,722 55,021 45,080 29,011 10,011
provisions for COVID impact of ₹ 504.36 Cr.)
Profit After Tax (PAT) (for FY 20 before considering one time 43,516 36,401 30,655 17,254 6,218 BOARD’S REPORT
provisions for COVID impact of ₹ 334.72 Cr (post tax impact)
Your directors have pleasure in presenting the forty second annual report together with the audited accounts of the company for the year
Assets ended 31 March, 2020.
Loans(net) - Ind AS / Receivables under financing 22,18,354 19,42,813 16,62,594 12,32,990 8,60,026 FINANCIAL RESULTS
activity - IGAAP ` in crores
Particulars 2019-20 2018-19
Cash, Bank and Cash Equivalents 34,066 80,084 38,897 25,840 16,878
Gross Income 8,652.89 6,992.64
Profit Before Tax (PBT) 1,585.73 1,823.15
Others 1,34,903 1,31,783 1,16,989 84,196 90,922
Profit After Tax (PAT) 1,052.37 1,186.15
Total Assets 9,67,826 One-time Provision for COVID and Macro 504.36 -
23,87,323 21,54,680 18,18,480 13,43,026
Profit Before Tax before one-time provisions 2,090.09 1,823.15
Liabilities and Equity Profit after Tax before one-time provisions 1,387.09 1,186.15
Total Comprehensive income 988.92 1,190.24
Borrowings 19,47,524 18,09,319 15,28,901 11,44,411 7,94,891 Appropriation:
Transfer to statutory and other reserves 720.00 840.00
Others 1,22,466 1,15,890 93,102 56,887 65,733 Dividend – Equity 166.17 101.63
Tax on dividend 34.15 20.89
Equity (in FY 20 Equity Infusion of ₹1,200 Cr QIP and Preferential 3,17,333 2,29,471 1,96,477 1,41,728 1,07,202
allotment)
SHARE CAPITAL OPERATIONS
Total Liabilities 23,87,323 21,54,680 18,18,480 13,43,026 9,67,826 During the year, pursuant to the approval of shareholders by way The financial year 2019-20 showed a slowdown in growth over
of postal ballots on 13 January, 2020 and 24 February, 2020, the previous year. It was also negative for the automotive industry with
Key Indicators* company had allotted 2,81,25,000 equity shares to 36 Qualified degrowth in commercial, passenger vehicles and two wheelers
Institutions Buyers at ₹ 320 per equity share on 31 January, 2020 segment. Despite the slowdown, your company was able to grow
Earnings per Equity Share - Basic (₹) 6.0 5.1 4.6 2.9 1.1 year on year, in terms of volume with growth in passenger vehicles
and 93,45,794 equity shares to Cholamandalam Financial Holdings
Limited, a promoter entity by way of a preferential allotment at and two-wheeler segments. Your company has also increased
Earnings per Equity Share - Diluted (₹) 6.0 5.1 4.6 2.9 1.1
₹ 321 per equity share on 7 March, 2020. its market share across all product segments except in heavy
commercial vehicles. At the end of the year, we had the COVID-19
Dividend per Equity Share (%) 35% 35% 35% 25% 15% Further, there was an increase in paid up capital during the year by
pandemic hit the global economy, bringing it to a standstill.
₹ 7.56 crores, consequent to allotment of shares upon exercise of Due to the wide-spread COVID-19 pandemic, government had
Book Value per Equity Share (₹) 40.70 32.05 27.46 21.38 17.97 stock options by employees under the company’s employee stock announced a lock-down of all businesses and all activities effective
option schemes. 25 March, 2020 which impacted disbursements of Q4 of FY 20.
The total paid up equity share capital of the company as at Pursuant to the moratorium announced by the Reserve Bank of
*Equity shares have been sub-divided into face value of ` 2 per share, consequently previous year figures have been adjusted. 31 March, 2020 is ₹ 163.98 crores. India (RBI) on EMI repayments (initially till May 2020 and further
- Numbers are as per Ind AS from FY18 onwards and rest of the years are as per IGAAP, hence not comparable. Upon approval by the shareholders and completion of other extended to August 2020), the company has framed a Board approved
regulatory procedures for the sub-division of equity shares, the policy, and accordingly offered moratorium to its customers.
equity share of face value of ₹ 10 (Rupees Ten) fully paid up has As a matter of abundant caution, your company has factored
been sub-divided into 5 equity shares of face value of ₹ 2 (Rupees in possibility of delay in customer payments post moratorium,
Two) fully paid-up with effect from 18 June, 2019. in case the economic slowdown is long drawn. Accordingly,
35 36
Corporate Overview Management Reports Financial Statements Cholamandalam Investment and Finance Company Limited Annual Report 2019 - 20
the company has created a one-time contingency provision of OUTLOOK

₹ 284 crores towards probable losses against loans which were During the year, the company made three grants aggregating DECLARATION FROM INDEPENDENT DIRECTORS
Outlook for the coming financial year continues to remain to 3,60,232 options to 8 employees. The total number of options
extended the moratorium. Over and above this, the company All the independent directors (IDs) have submitted their declaration
uncertain, with the COVID-19 situation evolving each day. Apart issued as on 31 March, 2020 under ESOP 2016 is 40,82,637.
has also created a macro provision of ₹ 250 crores to meet of independence, as required pursuant to section 149(7) of the
from agriculture and related activities, most other sectors of the
contingencies, if any that may arise post moratorium due to the ESOP 2007 Act, confirming that they meet the criteria of independence as
economy have been adversely impacted by the pandemic and are
global recession and economic slow-down. In total the company provided in section 149(6) of the Act. In the opinion of the board,
expected to show de-growth. Pursuant to the approval accorded by the shareholders at the
has set aside an additional provision of ₹ 534 crores (including the IDs fulfill the conditions specified in the Act and the rules
twenty ninth annual general meeting (AGM) of the company held
₹ 30 crores of macro provision created in FY 19) to meet any VF business will continue to be the mainstay for the company. made there under for appointment as IDs including the integrity,
on 30 July, 2007, the nomination and remuneration committee had
contingencies that may arise in future due to the COVID-19 business HE portfolio has also been a significant contributor to the expertise and experience and confirm that they are independent
formulated an employee stock option scheme 2007 (ESOP 2007).
disruptions. company's growth and profitability. HL is the rising star and has of the management. All the IDs of the company have registered
During the year, there have been no fresh grants under the scheme
a great potential to be built into a solid portfolio considering the their names with the data bank of IDs and are in the process of
The company has not availed moratorium so far on its borrowings, and there have been no changes in the scheme. Number of options
expertise of the company in handling typical customer profiles. The completion of online proficiency self-assessment test as per the
and it does not plan to avail moratorium even during the second outstanding as on 31 March, 2020 under the ESOP 2007 is 78,120.
company’s robust collection mechanism aided with a strong credit timeline notified by the Ministry of Corporate Affairs (MCA).
phase of the moratorium (June to August, 2020). The company had risk assessment framework will help us steer through the strong The schemes are in compliance with Securities and Exchange Board
closed March, 2020 with a cash balance of ₹ 6,508 crores and also currents of the COVID-19 pandemic in FY 20-21. of India (Share Based Employee Benefits) Regulations, 2014 (SEBI KEY MANAGERIAL PERSONNEL
had sanctioned lines of ₹ 4,462 crores. This adequately covers the (SBEB) Regulations) and the Companies Act, 2013 (the Act). Pursuant to the provisions of section 203 of the Act read with the
DIVIDEND
needs of the ALM process with no negative cumulative mismatches rules made there under, the following employees are the whole
The certificate from the statutory auditors confirming that ESOP 2007
across all time buckets. Even after extending the moratorium to its Dividend distribution policy time key managerial personnel of the company during FY 20:
and ESOP 2016 have been implemented in accordance with the SEBI
customers, for the second phase, the cash position of the company The company has formulated a dividend distribution policy in (SBEB) Regulations and shareholders resolutions has been obtained 1. Mr. Arun Alagappan, Managing Director
is adequate to meet all its maturities and fixed obligations till compliance with regulation 43A of SEBI (Listing Obligation and and will be available for the shareholders at the ensuing AGM. 2. Mr. Ravindra Kumar Kundu, Executive Director
September, 2020. Disclosure Requirement) Regulations, 2015 (Listing Regulations),
The details of the schemes as on 31 March, 2020 are provided and (from 23 January, 2020)
Inspite of the slowdown in the automotive sector, the lockdown of copy of which is available on the website of the company. (weblink:
https://www.cholamandalam.com/company-policies.aspx). disclosed on the website of the company (weblink: https://www. 3. Mr. D. Arul Selvan, Chief Financial Officer and
the entire nation in March, 2020, the high level of provisions made cholamandalam/esop.aspx).
towards the COVID-19 pandemic and the provision towards macro Payment of dividend 4. Ms. P. Sujatha, Company Secretary
factors, the company achieved a growth of 16% in assets under The board of directors, at their meetings held on 12 December,
DIRECTORS
DIRECTORS’ RESPONSIBILITY STATEMENT
management (AUM). The profit after tax (PAT) before considering the 2019 and 26 February, 2020 had declared interim dividends of Appointments
The directors’ responsibility statement as required under section
impact of the one time provision for COVID-19 and the macro factors ₹ 1 per equity share and ₹ 0.70 per equity share of the face value
During the year, the board at its meeting held on 30 July, 2019 134(5) of the Act, reporting the compliance with accounting
(one time provision) grew by 17%. The PAT registered a degrowth of of ₹ 2 each respectively (aggregating 85% on ₹2/- face value), for
had appointed Ms. Bhama Krishnamurthy as an additional director standards, is attached and forms part of the board’s report.
11% as compared to FY 19 after considering the one time provision. FY 20 (previous year declared 65% - ₹ 1.30 per share - at face value of
in the capacity of an independent director with effect from
Vehicle Finance (VF) business witnessed a disbursement decline
₹ 2 per share). The board of directors have recommended the same
31 July, 2019 and she shall hold office up to the date of ensuing
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
to be declared as final dividend for FY 20. REGULATORS
of 6%. Disbursements in VF for the year were at ₹ 23,387.43 crores AGM as an additional director. The appointment of Ms. Bhama
as against ₹ 24,983.24 crores in the previous year. The business TRANSFER TO RESERVES as an independent director for a term of 5 years from the date There are no significant and material orders passed by the regulators
recorded a growth of 9% in closing managed assets and profit of appointment has been recommended for the approval of or courts or tribunals which would impact the going concern status
The company transferred a sum of ₹ 220 crores to statutory
before tax (PBT) declined by 26% after considering additional shareholders at the ensuing AGM. of the company and its future operations.
reserve as required under the Reserve Bank of India Act, 1934 and
provision of ₹ 398 crores towards its share of one time provision. ₹ 500 crores to general reserves. Further, the board at its meeting held on 5 November, 2019 had MANAGEMENT DISCUSSION AND ANALYSIS
PBT before one time provision grew by 6% year on year. appointed Mr. Arun Alagappan as the managing director of the
FIXED DEPOSITS The management discussion and analysis report (MDA), highlighting
Home equity (HE) business also witnessed a disbursement decline company for a period of five years effective 15 November, 2019.
The company is an NBFC - Investment and Credit Company the business-wise details is attached and forms part of this report.
of 5%. Disbursements in HE for the year were at ₹ 3,661.89 crores as Mr. Ravindra Kumar Kundu was appointed as the executive director MDA also contains the details of the risk management framework
(NBFC-ICC). The company does not hold or accept deposits as
against ₹ 3,836.55 crores in the previous year. The business recorded of the company for a period of five years effective 23 January, 2020. of the company including the development and implementation
of the date of balance sheet.
a growth of 11% in closing managed assets and a PBT decline of 20% Both the appointments have been recommended for approval of of risk management policy and the key risks faced by the company.
CAPITAL ADEQUACY the shareholders at the ensuing AGM of the company.
after considering its share of one time provision of ₹ 90.56 crores.
The company’s capital adequacy ratio was at 20.7% as on CORPORATE GOVERNANCE REPORT
PBT before one time provisioning grew by 10% year on year. Mr. M.M. Murugappan, chairman and non-executive director retires
31 March, 2020 as against the statutory minimum capital adequacy A report on corporate governance as per the Listing Regulations is
Disbursements in home loans (HL) business were at by rotation at the ensuing AGM and being eligible, has offered
of 15% prescribed by RBI. attached and forms part of this report. The report also contains the
₹ 1,504.74 crores as against ₹ 1,156.88 crores in the previous year himself for re-appointment.
details as required to be provided on the composition and category
and Micro, Small and Medium Enterprise (MSME) business were at EMPLOYEE STOCK OPTION (ESOP) SCHEMES Retirement
of directors, number of meetings of the board, composition of the
₹ 537.11 crores as against ₹ 473.84 crores in the previous year. ESOP 2016 Ms. Bharati Rao retired at the conclusion of the 41st AGM held on various committees, annual board evaluation, remuneration policy,
The business AUM of the company as at 31 March, 2020 increased to Pursuant to the approval accorded by the shareholders on 30 July, 2019. The board places on record its deep appreciation criteria for board nomination and senior management appointment,
₹ 60,549 crores from ₹ 54,279 crores in the previous year, recording 3 January, 2017, the nomination and remuneration committee had for the immense contribution made by Ms. Bharati Rao during her whistle blower policy/vigil mechanism, disclosure of relationships
a growth of 12%. formulated an employee stock option scheme 2016 (ESOP 2016). tenure on the board and as a member of the various committees. between directors inter-se, state of company’s affairs, etc.
37 38
The managing director and the chief financial officer have submitted ₹ 28.88 crores towards CSR activities during FY 20, the details of DISCLOSURE OF REMUNERATION HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES /
a compliance certificate to the board regarding the financial which are annexed to and forms part of this report. ASSOCIATES
The disclosure with respect to remuneration as required under
statements and other matters as required under regulation 17(8) of In April, 2020 the company, contributed a sum of ₹ 1 crore to
the Listing Regulations. section 197 of the Act read with rule 5 of the Companies CHOLAMANDALAM SECURITIES LIMITED (CSEC)
The Prime Minister's Citizen Assistance and Relief in Emergency
(Appointment and Remuneration of Managerial Personnel) Rules, During the year CSEC focused on creating three distinct business
BUSINESS RESPONSIBILITY REPORT Situations Fund and ₹ 3 crores to Government of Tamil Nadu - Chief
2014 is attached and forms part of this report. lines for enhancing revenues and productivity - broking, wealth
Minister's Public Relief Fund for COVID-19 relief activities.
A business responsibility report is attached and forms part of this and insurance distribution. The broking business grew 9%, wealth
report. INTERNAL FINANCIAL CONTROLS PARTICULARS OF EMPLOYEES
business dropped by 32% due to cap on upfront income and
Internal control framework including clear delegation of authority In accordance with section 136 of the Act, the report and accounts insurance distribution business was scaled up significantly. CSEC
CONSOLIDATED FINANCIAL STATEMENTS
and standard operating procedures are established and laid out are being sent to the members and others entitled thereto. The achieved a gross income of ₹ 23.58 crores for the year ended
The consolidated financial statement is prepared in accordance across all businesses and functions. These are reviewed periodically statement prescribed under rule 5(2) and 5(3) of the Companies 31 March, 2020 and made a PBT of ₹ 3.28 crores as against a PBT
with the Act and the relevant accounting standards and forms part at all levels. The company has a co-sourced model of internal audit. (Appointment and Remuneration of Managerial Personnel) Rules, of ₹ 3.31 crores in the previous year. The Mutual Fund AUM was at
of this annual report. The risk and control matrices are reviewed on a quarterly basis and
2014 is available for inspection. If any member is interested in ₹ 846 crores. CSEC did not declare any dividend during the year.
AUDITORS control measures are tested and documented. These measures
obtaining a copy, such member may send an e-mail to the company
have helped in ensuring the adequacy of internal financial controls CHOLAMANDALAM HOME FINANCE LIMITED (CHFL)
M/s. S. R. Batliboi & Associates LLP, chartered accountants are secretary in this regard.
commensurate with the scale of operations of the company.
the statutory auditors of the company. They were appointed CHFL recorded a gross income of ₹ 38.61 crores for the year ended
as statutory auditors of the company at the 39th AGM held on RELATED PARTY TRANSACTIONS COMPLIANCE WITH SECRETARIAL STANDARDS ON 31 March, 2020 and made a loss before tax of ₹ 0.77 crores as against
27 July, 2017 for a period of five years commencing from the The company has in place a policy on related party transactions as BOARD AND GENERAL MEETINGS a loss of ₹ 11 crores in the previous year. CHFL did not declare any
conclusion of 39th AGM till the conclusion of 44th AGM. approved by the board and the same is available on the website The company has complied with all the provisions of secretarial dividend during the year. The company had made an application to
of the company (weblink: https://www.cholamandalam.com/ National Housing Bank (NHB) for registration as a Housing Finance
SECRETARIAL AUDIT standards issued by the Institute of Company Secretaries of India in
company-policies.aspx). Company (HFC) in June 2018 and currently engaging with RBI
Pursuant to the provisions of the Act and the rules framed there respect of meetings of the board of directors and general meetings
All transactions with related parties that were entered into during the new regulator for HFCs to obtain license to operate as HFC.
under, M/s. R. Sridharan & Associates, company secretaries had held during the year.
the financial year were in the ordinary course of business and Currently, the company continues its focus on growing insurance
undertaken a secretarial audit of the company for FY 20. The
were on an arm’s length basis. There are no materially significant INTERNAL COMPLAINTS COMMITTEE corporate agency business.
secretarial audit report is attached and forms part of this report and
transactions made by the company with promoters, directors, key
does not contain any qualification. The company has in place a policy for prevention of sexual ACKNOWLEDGEMENT
managerial personnel or other designated persons which may
harassment in line with the requirements of the Sexual Harassment The directors wish to thank the company’s customers, vehicle
COST RECORD AND COST AUDIT have a potential conflict with the interest of the company at large.
There are no contracts or arrangements entered into with related of Women at the Workplace (Prevention, Prohibition and Redressal) manufacturers, vehicle dealers, channel partners, banks, mutual
Maintenance of cost records and requirements of cost audit as
parties during the year to be disclosed under sections 188(1) Act, 2013 (POSH Act). The company has complied with the funds, rating agencies and shareholders for their continued
prescribed under the provisions of section 148(1) of the Act is not
and 134(h) of the Act in form AOC-2. All transactions with related provisions relating to constitution of internal complaints committee support. The directors also thank the employees of the company
applicable for the business activities carried out by the company.
parties were placed before the audit committee for prior approval (ICC) under the POSH Act. ICC has been set up to redress complaints for their contribution to the company’s operations during the year
EXTRACT OF ANNUAL RETURN at the beginning of the financial year. The transactions entered into received regarding sexual harassment. All employees are covered under review.
In accordance with section 134(3)(a) of the Act, the extract of the pursuant to the approval so granted were placed before the audit under this policy. During the year the company conducted On behalf of the board
annual return in form MGT-9 is attached and forms part of this report. committee for its review on a quarterly basis. None of the directors
workshops for employees creating awareness about POSH Act.
has any pecuniary relationship or transaction vis-à-vis the company.
CORPORATE SOCIAL RESPONSIBILITY During the calendar year ended 31 December, 2019, there were no Place : Chennai M.M. Murugappan
INFORMATION AS PER SECTION 134(3)(m) OF THE ACT referrals received by ICC. Date : June 3, 2020 Chairman
The Murugappa group is known for its tradition of philanthropy
The company has no activity relating to consumption of energy
and community service. The group’s philosophy is to reach out
or technology absorption. Foreign currency expenditure
to the community by establishing service-oriented philanthropic
amounting to ₹ 129.40 crores was incurred during the year under
institutions in the field of education and healthcare as the core focus
review. Foreign currency remittances made during the year was
areas. The company upholds the group’s tradition by earmarking a
₹ 11.02 crores towards purchase of fixed assets. The company does
part of its income for carrying out its social responsibilities.
not have any foreign exchange earnings.
The company has been carrying out corporate social responsibility
(CSR) activities for many years now even before it was mandated PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
under the Act. The company has put in place a CSR policy and Being an NBFC, the disclosures regarding particulars of loans given,
is available on the website of the company (weblink: www. guarantees given and security provided is exempted under the
cholamandalam.com/csr-policy.aspx). provisions of section 186(11) of the Act.
As per the provisions of the Act, the company is required to As regards investments made by the company, the details of the
spend at least 2% of the average net profits of the company same are provided under note 10 in standalone financial statements
made during the three immediately preceding financial years. and notes 12 and 45 in consolidated financial statements of the
This amount aggregated to ₹ 28.87 crores and the company spent company for the year ended 31 March, 2020.
39 40
Directors’ Responsibility Annexure-I

Statement Secretarial Audit Report
for the financial year ended 31 March, 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24 A of the SEBI (Listing
Obligations and Disclosure Requirements), Regulations, 2015 as amended]
To d) The Employee Stock Option Plan, 2016 approved under the
The Members, Securities Exchange Board of India (Share Based Employee
The board of directors have instituted / put in place a framework of internal financial controls and compliance systems, which is reviewed CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED Benefits) Regulations, 2014 and the Employee Stock Option
by the management and the relevant board committees, including the audit committee and independently reviewed by the internal, CIN: L65993TN1978PLC007576, Scheme, 2007 approved under the Securities Exchange
statutory and secretarial auditors. Dare House, No. 2 N S C Bose Road, Parrys, Chennai – 600001 Board of India (Employee Stock Option Scheme and
Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, confirm that: Employee Stock Purchase Scheme) Guidelines, 1999;
We have conducted the Secretarial Audit of the compliance
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and that there were no material of applicable statutory provisions and the adherence to good e) The Securities and Exchange Board of India (Issue and
corporate practices by CHOLAMANDALAM INVESTMENT Listing of Debt Securities) Regulations, 2008;
departures therefrom;
AND FINANCE LIMITED [Corporate Identification Number:
f )
The Securities and Exchange Board of India (Registrars
(ii) they have, in the selection of the accounting policies, consulted the statutory auditors and have applied their recommendations L65993TN1978PLC007576] (hereinafter called “the Company”).
to an Issue and Share Transfer Agents) Regulations, 1993
consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of Secretarial Audit was conducted in a manner that provided us a
regarding the Companies Act and dealing with client;
reasonable basis for evaluating the corporate conducts/statutory
affairs of the company as at 31 March, 2020 and of the profit of the company for the year ended on that date;
compliances and expressing our opinion thereon. g) The Securities and Exchange Board of India (Delisting of
(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions Based on our verification of the Company’s books, papers, minute Equity Shares) Regulations, 2009; (not applicable to the
of the Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other books, forms and returns filed and other records maintained and company during the audit period); and
irregularities; also the information provided by the Company, its officers, agents h)
The Securities and Exchange Board of India (Buyback
and authorized representatives during the conduct of secretarial of Securities) Regulations, 2018; (not applicable to the
(iv) they have prepared the annual accounts on a going concern basis; audit, we hereby report that in our opinion, the Company has, company during the audit period);
(v) they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate during the audit period covering the financial year ended on
31st March, 2020 complied with the statutory provisions listed (vi) Other laws specifically applicable to the Company are –
and were operating effectively during the year ended 31 March, 2020; and
hereunder and also that the Company has proper Board-processes a)
Reserve Bank of India Act, 1934, Rules, Regulations,
(vi) proper system has been devised to ensure compliance with the provisions of all applicable laws and that such systems were and compliance mechanism in place to the extent, in the manner guidelines, circulars, directions, notifications made
adequate and operating effectively during the year ended 31 March, 2020. and subject to the reporting made hereinafter: thereunder.
We have examined the books, papers, minute books, forms and Non-Banking Financial Company – Systemically Important
b)
returns filed and other records maintained by the Company for Non-Deposit taking Company (Reserve Bank) Directions, 2016
the financial year ended on 31st March, 2020 according to the
provisions of: c) Non-Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 2016
The Companies Act, 2013 (the Act) and the rules made there under;
(i)
On behalf of the board Non-Banking Financial (Non-Deposit Accepting or Holding)
d)
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the
rules made there under; Companies Prudential Norms (Reserve Bank) Directions, 2007
Place : Chennai M.M. Murugappan
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws e) NBFC Auditors Report Reserve Bank Directions, 2008
Date : June 3, 2020 Chairman
framed there under; f ) Guidelines for Asset – Liability Management (ALM) system
(iv) The Company has complied with the provisions of Foreign in NBFC’s
Exchange Management Act, 1999 and the rules and regulations g) NBFC Public Deposits RBI Directions 1998
made there under to the extent of External Commercial
Borrowings. There is no Foreign Direct Investment and Overseas We believe that the audit evidence which we have obtained is
Direct Investment during the year under review. sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according
(v) The following Regulations and Guidelines prescribed under the
to explanations given to us, we believe that the compliance
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
management system of the Company is adequate to ensure
a) The Securities and Exchange Board of India (Substantial compliance of laws as mentioned above.
Acquisition of Shares and Takeovers) Regulations, 2011;
With respect to the applicable financial laws such as direct and
b) The Securities and Exchange Board of India (Prohibition of indirect tax laws, based on the information & explanations provided
Insider Trading) Regulations, 2015; by the management and officers of the Company and certificates
c) The Securities and Exchange Board of India (Issue of Capital placed before the Board of Directors, we report that adequate
and Disclosure Requirements) Regulations, 2018; systems are in place to monitor and ensure compliance.
41 42
We have also examined compliance with the applicable clauses / We further report that during the audit period, the Company has
Annexure-II
regulations of the following: 1. Obtained the approval of the Shareholders by way of Postal
(i) Secretarial Standards with respect to Meetings of Board of Ballot on 03.06.2019 as follows:
Directors (SS-1) and General Meetings (SS-2) issued by the Approval under Section 61 (1)(d) of the Act for sub-division
•
Institute of Company Secretaries of India.
of existing each equity share of face value of ₹ 10/- fully paid
(ii) The Uniform Listing Agreement entered into with BSE Limited
and National Stock Exchange of India Limited pursuant to

into five equity shares of face value of ₹ 2/- each fully paid up.
• Approval under Section 13 read with Section 61 of the Act
Form No. MGT-9-Extract of Annual Return
the provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
for alteration of the existing capital clause V of the alteration As on the financial year ended 31 March, 2020
of the objects of the Memorandum of Association of the
During the period under review, the company has complied with company by substituting the same with a new Clause V. [Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management
the provisions of the Act, Rules, Regulations, Guidelines, Standards, and Administration) Rules, 2014]
• Approval under Section 13 of the Act for alteration of the
etc. as mentioned above.
objects to pursued by the Company - under Clause III(A) 13
We have not verified the correctness and appropriateness of (j), III(B) 10 and III (B) 11 of the Memorandum of Association I. REGISTRATION AND OTHER DETAILS
financial records and books of accounts of the company. of the Company. 1) Corporate Identity Number (CIN) L65993TN1978PLC007576
We further report that 2. Obtained the approval of the Shareholders at the 41st Annual 2) Registration Date 17 August, 1978
general meeting held on 30th July, 2019 as follows:
The Board of Directors of the company is duly constituted with 3) Name of the Company Cholamandalam Investment and Finance Company Limited
proper balance of Executive Directors, Non-Executive Directors, • Under Section 180 (1) (a) and 180 (1)(c) of the Act to borrow
Woman Independent Director and Independent Directors. The moneys from time to time upto a limit of an outstanding 4) Category / Sub-Category of the Company Public Company / Limited by shares
changes in the composition of Board of Directors that took place aggregate value of ₹ 75,000 crores. 5) Address of the Registered office and contact details "Dare House", No.2, N.S.C. Bose Road, Parrys, Chennai 600 001
during the period under review were carried out in the compliance • Under Section 42 and Section 71 of the Act to offer, issue Phone: 044 40907172 (bd.) 40907055 (d); Fax: 044 25346464
with the provisions of the Act and listing regulations. and allot, in one or more series or tranches, secured and E-mail: [email protected]
Adequate notice is given to all directors before schedule of the unsecured non-convertible debentures on a private [email protected]
Board Meetings, agenda and detailed notes on agenda were sent placement basis during the period commencing from the
date of the forty first annual general meeting until the 6) Listed Company (Yes / No) Yes
at least seven days in advance and a system exists for seeking and
obtaining further information and clarifications on the agenda conclusion of the forty second annual general meeting, 7) Name, address and contact details of Registrar and KFin Technologies Private Limited
items before the meeting and for meaningful participation at up to an amount not exceeding ₹ 26,000 crores within the Transfer Agent, if any (Unit: Cholamandalam Investment and Finance Company Limited)
the meeting. Notes on agenda which are circulated less than overall borrowing limits of the company.
Selenium Tower B, Plot 31-32, Gachibowli,
the specified period, the necessary compliances under the Act Obtained the approval of the Shareholders by way of Postal Ballot
3. Financial District Nanakramguda,
and Secretarial Standards on Board Meeting are complied with. on 13.01.2020 under Section 62 (1)(c) of the Act to offer, issue and Hyderabad - 500 032, Telangana
During the year under review, directors have participated in the allot equity shares of face value of ₹ 2/- each for an aggregate
Phone: 040 67161736 | Toll free: 1800-345-4001| Fax: 040 23420814
committees/board meetings through video conferencing, such amount not exceeding ₹ 1,000 Crores (Rupees One Thousand Crores
meetings were properly convened and recorded in compliance only), in one or more tranches, by way of qualified institutions E-mail: [email protected] | Website: www.karisma.kfintech.com
with the provisions of Section 173 (2) of the Act read with Rule placement to eligible qualified institutional buyers in accordance Contact person: Mr. Rajkumar Kale - Senior Manager - Corporate Registry
3 & 4 of Companies (Meetings of Board and its Powers) Rules, 2014. with Chapter VI of the Securities and Exchange Board of India (Issue
of Capital and Disclosure Requirements) Regulations, 2018. II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Based on the verification of the records and minutes, the decisions
were carried out with the consent of the Board of Directors / 4. Obtained the approval of the Shareholders by way of Postal All the business activities contributing 10% or more of the total turnover of the company are given below
Committee Members and no Director / Member dissented on the Ballot on 24.02.2020 under Section 62 (1)(c) of the Act to offer,
issue and allot such number of equity shares of face value of SN. Name and description of main NIC code of the product / service* % to total turnover
decisions taken at such Board / Committee Meetings. Further, in the
₹ 2/- each upto an aggregate amount of ₹ 300 Crores (Rupees products / services of the company
minutes of the General Meeting, the number of votes cast against
the resolutions has been recorded. Three Hundred Crores only), in one or more tranches, by way 1. Financial services - Lending Section K - Group 649 - Other Financial Service activities, 96.27%
of private placement on a preferential basis to Cholamandalam except insurance and pension funding activities
We further report that based on the review of compliance Financial Holdings Limited, a promoter entity or any other
mechanism established by the Company and on the basis of our promoter entity, in accordance with chapter V of the Securities *As per National Industrial Classification, Ministry of Statistics and Programme Implementation
review and audit of the records and books, we are of the opinion and Exchange Board of India (Issue of Capital and Disclosure
that the management has adequate systems and processes Requirements) Regulations, 2018. III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
commensurate with its size and operations, to monitor and
5.
Issued secured redeemable non-convertible debentures for
ensure compliance with all applicable laws, rules, regulations and SN. Name and address of the Company CIN / GLN Holding / Subsidiary % of shares Applicable
₹ 894.50 crores and unsecured redeemable non-convertible
guidelines. / Associate held section
debentures for ₹ 450 crores.
We further report that the above mentioned Company being a 1. Cholamandalam Securities Limited U65993TN1994PLC028674 Subsidiary company 100.00% Section
6. Redeemed secured redeemable non-convertible debentures for
Listed entity this report is also issued pursuant to Regulation 24A of Dare House, No.2, N.S.C. Bose Road, 2(87)
₹ 5,526.00 crores and unsecured redeemable non-convertible
SEBI (Listing Obligations and Disclosure Requirements) Regulations, debentures for ₹ 295.00 crores. Parrys, Chennai 600 001
2015 as amended and circular No.CIR/CFD/CMD1/27/2019 dated For R. Sridharan & Associates 2. Cholamandalam Home Finance Limited U67190TN2000PLC045617 Subsidiary company 100.00% Section
8th February, 2019 issued by Securities and Exchange Board of India.
Company Secretaries Dare House, No.2, N.S.C. Bose Road, 2(87)
We further report that as per the information and explanations Parrys, Chennai 600 001
provided by the Management, the Company does not have any CS. R. Sridharan 3. White Data Systems India Private Limited U72200TZ2015PTC021273 Associate company 30.87% Section
Material Unlisted Subsidiary (ies) Incorporated in India as defined in CP No. 3239
Old No. 24, New No. 39, Periaswamy Road, 2(6)
Regulation 16(1)(c) and Regulation 24A of SEBI (Listing Obligations FCS No. 4775
and Disclosure Requirements) Regulations, 2015 during the period UIN : S2003TN063400 (East), R S Puram, Coimbatore 641 002
Place : Chennai
under review.
Date : June 3, 2020 UDIN: F004775B000308045
43 44
IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Shareholding (Contd.)
(i) Category-wise Shareholding:

S. No Category of No. of Shares held at the beginning of the No. of Shares held at the end of the %
S. No Category of No. of Shares held at the beginning of the No. of Shares held at the end of the %
Shareholder year 01-04-2019 (Face value of ` 10 each) year 31-03-2020 (Face value of ` 2 each) Change
Shareholder year 01-04-2019 (Face value of ` 10 each) year 31-03-2020 (Face value of ` 2 each) Change
during
during Demat Physical Total % to Demat Physical Total % to the year

Demat Physical Total % to Demat Physical Total % to the year No. of total no. No. of total no.
No. of total no. No. of total no. Shares of shares Shares of shares
Shares of shares Shares of shares
(i) Others - Alternate 11,87,149 - 11,87,149 0.76 69,35,884 - 69,35,884 0.85 0.09
(A) PROMOTER AND PROMOTER GROUP
Investment Funds
(1) INDIAN Qualified Institutional 2,39,31,567 - 2,39,31,567 2.92 2.92
(a) Individual / HUF 25,96,069 - 25,96,069 1.66 97,78,280 - 97,78,280 1.19 (0.47) Buyer
(b)
Central Government - - - - - - - - - Sub-Total B(1) : 5,61,56,851 100 5,61,56,951 35.92 32,16,10,460 500
32,16,10,960 39.24 3.33
/State Government(s) (2) NON-INSTITUTIONS

(a) Bodies Corporate 63,83,219 1,997 63,85,216 4.08
1,23,94,058 8,985
1,24,03,043 1.51 (2.57)
(c) Bodies Corporate 7,96,72,304 - 7,96,72,304 50.95 40,77,21,704 - 40,77,21,704 49.75 (1.20)
(b) Individuals
(d)
Financial Institutions - - - - - - - - -
(i) Individuals holding 83,62,838 2,76,689 86,39,527 5.53 4,64,95,538 11,24,490 4,76,20,028 5.81 0.28
/ Banks nominal share capital
(e)
Others 6,93,877 - 6,93,877 0.44
57,78,220 -
57,78,220 0.71
0.27 upto ` 1 lakh
Sub-Total A(1) : 8,29,62,250 - 8,29,62,250 53.06 42,32,78,204 - 42,32,78,204 51.65 (1.41) (ii) Individuals holding 12,56,062 - 12,56,062 0.80 67,32,763 86,900 68,19,663 0.83 0.03
nominal share capital
(2) FOREIGN
in excess of ` 1 lakh
(a)
Individuals (NRIs/ 2,578 - 2,578 0.00 12,890 - 12,890 0.00
0.00
(c)
Others
Foreign Individuals) Clearing Members 1,41,776 - 1,41,776 0.09
26,75,690 -
26,75,690 0.33
0.24
(b)
Bodies Corporate - - - - - - - - - Foreign Nationals 370 - 370 0.00 - - - -
(0.00)
(c)
Institutions - - - - - - - - - IEPF 58,260 - 58,260 0.04 4,04,280 125 4,04,405 0.05 0.01
(d)
Qualified Foreign - - - - - - - - - NBFC 59,596 - 59,596 0.04 1,71,506 - 1,71,506 0.02
(0.02)
Non Resident Indians 3,22,015 7,702 3,29,717 0.21 18,29,536 21,260 18,50,796 0.23 0.02
Investor
Non Resident Indians 2,03,618 - 2,03,618 0.13 21,45,215 - 21,45,215 0.26 0.13
(e)
Others - - - - - - - - -
- Non-repatriable
Sub-Total A(2) : 2,578 - 2,578 0.00 12,890 - 12,890 0.00 0.00 Trusts 1,63,192 - 1,63,192 0.10 5,85,359 - 5,85,359 0.07 (0.03)
Total A=A(1)+A(2) 8,29,64,828 - 8,29,64,828 53.06 42,32,91,094 - 42,32,91,094 51.65 (1.41) (d)
Qualified Foreign - - - - - - - - -
(B) PUBLIC SHAREHOLDING Investor
Sub-Total B(2) : 1,69,50,946 2,86,388 1,72,37,334 11.02 7,34,33,945 12,41,760 7,46,75,705 9.11 (1.91)
(1) INSTITUTIONS
Total B=B(1)+B(2): 7,31,07,797 2,86,488 7,33,94,285 46.94 39,50,44,405 12,42,260 39,62,86,665 48.35 1.41
(a) Mutual Funds /UTI 2,52,98,486 100 2,52,98,586 16.18 19,04,28,071 500 19,04,28,571 23.23 7.05
Total (A+B) 15,60,72,625 2,86,488 15,63,59,113 100.00 81,83,35,499 12,42,260 81,95,77,759 100.00 0.00
(b)
Financial Institutions 49,930 - 49,930 0.03 2,79,195 - 2,79,195 0.03
0.00 (C) Shares held by- - - - - - - - - -
/Banks custodians, against
(c)
Central Government - - - - - - - - - which Depository
/ State Government(s) Receipts have been
issued
(d) Venture Capital Funds - - - - - - - - -
(1)
Promoter and - - - - - - - - -
(e) Insurance Companies - - - - - - - - -
Promoter Group
(f )
Foreign Institutional
2,96,21,286 -
2,96,21,286
18.94
10,00,35,743 -
10,00,35,743
12.21
(6.73) (2)
Public - - - - - - - - -
Investors GRAND TOTAL 15,60,72,625 2,86,488 15,63,59,113 100.00 81,83,35,499 12,42,260 81,95,77,759 100.00 0.00
(g)
Foreign Venture - - - - - - - - - (A+B+C)
Capital Investors Note:

1. Change in the percentage of shareholding is due to increase in paid-up share capital of the company on account of allotment of 3,11,400 shares under ESOP, allotment of
(h) Qualified Foreign - - - - - - - - - 2,81,25,000 shares under qualified institutions placement and 93,45,794 shares under preferential allotment.
2. Change in number of shares is due to subdivision of equity shares of ₹ 10/- each to equity shares of ₹ 2/- each w.e.f. 18 June, 2019.
Investor
45 46
(ii) Shareholding of promoters and promoter group: (iii) (a) Change in Promoters’ Shareholding (please specify, if there is no change):
SN. Shareholding at the beginning Cumulative
SN. Shareholder’s Name Shareholding at the beginning Shareholding at the end of the year % of the year Shareholding during the year
of the year change No. of Shares % of total No. of Shares % of total
No. of % of total % of Shares No. of % of total % of Shares in share Shares of the Shares of the
holding Shares Shares Pledged / Shares Shares Pledged / company company
during (Face value of the encumbered (Face value of the encumbered
of ` 10 each) company to total of ` 2 each) company to total the year 1 At the beginning of the year - Promoter 8,10,91,464 51.86 - -
shares shares 2 Date wise increase / decrease in Promoters’ Shareholding

PROMOTERS during the year specifying the reasons for increase / decrease
1. M. V. Murugappan holds shares - - - - - - - i M. V. Subbiah
At the beginning of the year 3,14,925 0.20
jointly with M. A. Alagappan and
03-Jun-2019 - Inter-se transfer by way of gift to (1,50,578) (0.10) 8,09,40,886 51.77
M. M. Murugappan
M/s. Saraswathi Trust & M/s. Shambho Trust
2. M. V. Subbiah 3,14,925 0.20 - 10,000 0.00 - (0.20) ii S. Vellayan
3. S. Vellayan 2,45,493 0.16 - 0 0.00 - (0.16) At the beginning of the year 2,45,493 0.16
4. A. Vellayan 27,157 0.02 - 1,35,785 0.02 - 0.00 03-Jun-2019 - Inter-se transfer to (2,45,493) (0.16) 82,467,318 52.74
5. V. Narayanan 50,800 0.03 - 2,54,000 0.03 - 0.00 M/s. Shambho Trust by way of gift
iii Promoter shareholding prior to sub-division 8,06,95,393 51.61
6. V. Arunachalam 48,503 0.03 - 2,42,515 0.03 - 0.00
iv 18-Jun-2019 - Consequent to the sub-division of equity shares, 40,34,76,965 51.61
7. A. Venkatachalam 41,921 0.03 - 2,09,605 0.03 - 0.00
of face value of ₹ 10/- (Rupees Ten only) fully paid up into
8. Arun Venkatachalam 80,750 0.05 - 4,03,750 0.05 - 0.00 equity shares of face value of ₹ 2/- (Rupees Two only) each
9. M. M. Murugappan 4,207 0.00 - 21,035 0.00 - 0.00 fully paid up, number of shares increased to
10.
M. M. Veerappan - - - - - - - 40,34,76,965 shares
11. M. M. Muthiah - - - - - - - v Ambadi Investments Limited
12.
M. M. Venkatachalam - - - - - - - At the beginning of the year* 3,45,96,870 4.43
25-Jun-2019 – Market sale of shares (8,75,000) (0.11) 40,26,01,965 51.50
13.
M. V. Muthiah - - - - - - -
vi Cholamandalam Financial Holdings Limited
14.
M. V. Subramanian - - - - - - -
At the beginning of the year* 36,26,65,095 46.39
15. M. A. Alagappan 5,63,546 0.36 - 28,44,610 0.35 - (0.01) 25-Jun-2019 – Market purchase of shares 8,75,000 0.11 40,34,76,965 51.61
16. Arun Alagappan 1,90,000 0.12 - 9,50,000 0.12 - 0.00 vii M. V. Subbiah
17. M. A. M. Arunachalam 13,000 0.01 - 65,000 0.01 - 0.00 As on 03-Jun-2019* 8,21,735 0.10
18. M.V. Murugappan (HUF) - - - - - - - 25-Jun-2019 – Off-market transfer of shares by way of gift (8,11,735) (0.10) 40,26,65,230 51.50
viii Cholamandalam Financial Holdings Limited
19. E.I.D. Parry (India) Ltd. 393 0.00 - 1,965 0.00 - 0.00
As on 25-Jun-2019 36,35,40,095 46.50
20. Coromandel International Ltd. - - - - - - -
07-Mar-2020 – Preferential allotment of shares 93,45,794 1.14 41,20,11,024 50.28
21. New Ambadi Estates Pvt. Ltd. - - - - - - - ix M. A. Alagappan
22. Ambadi Enterprises Ltd. 58,276 0.04 - 2,91,380 0.04 - 0.00 At the beginning of the year* 24,61,880 0.31
23. Ambadi Investments Ltd. 69,19,374 4.43 - 3,37,21,870 4.11 - (0.32) 19-Mar-2020 – Market purchase of shares 26,880 0.00 41,20,37,904 50.28
(Formerly Ambadi Investments 3 At the end of the year - Promoter 41,20,37,904 50.27
Private Limited) *Number of shares adjusted to reflect the sub-divided shares of face value of ` 2 each.
24. Tube Investments of India Limited - - - - - -
25. Cholamandalam Financial Holdings 7,25,33,019 46.39 - 37,28,85,889 45.50 - (0.89)
(iii) (b) Change in Promoters’ Debentureholding (please specify, if there is no change):
Limited (Formerly known as
SN. Debenture holding at the Cumulative Debenture
TI Financial Holdings Limited)
beginning of the year holding during the year
26. Carborundum Universal Ltd. 100 0.00 - 500 0.00 - 0.00
No. of % of total No. of % of total
27. Murugappa & Sons - - - - - - - Debenture Debenture of Debenture Debenture of
(M. V. Subbiah, M. A. Alagappan and the company the company
M. M. Murugappan hold shares on 1. At the beginning of the year - promoter - - - -
behalf of the Firm) 2. Date wise increase / decrease in Promoters’
PROMOTER (A) 8,10,91,464 51.86 - 41,20,37,904 50.28 - (1.58) debentureholding during the year specifying the reasons for
increase / decrease
PROMOTER GROUP (B) 18,73,364 1.20 - 1,12,53,190 1.37 - 0.17
Ambadi Enterprises Limited
TOTAL (A)+(B) 8,29,64,828 53.06 - 42,32,91,094 51.65 - (1.41)
At the beginning of the year - -
31-Jan-2020 – Market purchase of debentures 3 0.01
3. At the end of the year - promoter 3 0.01
47 48
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding
SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding Share Holder beginning of the year Decrease during the year
Shareholder beginning of the year Decrease during the year (01-04-2019) in share (01-04-2019 to 31-03-2020)
(01-04-2019) in share (01-04-2019 to 31-03-2020) holding
holding No. of % of total No. of % of total
No. of % of total No. of % of total shares shares of shares shares of
shares shares of shares shares of the Company the Company
the Company the Company 26-07-2019 (7,337) Sale 51,10,320 0.65
1 DSP A.C.E. FUND 1,84,258 0.12 02-08-2019 3,34,323 Purchase 54,44,643 0.70
- SERIES 1 12-04-2019 (9,269) Sale 1,74,989 0.11 02-08-2019 (32,859) Sale 54,11,784 0.69
19-04-2019 (68,782) Sale 1,06,207 0.07 09-08-2019 42,687 Purchase 54,54,471 0.70
26-04-2019 (31,926) Sale 74,281 0.05 09-08-2019 (2,46,047) Sale 52,08,424 0.67
03-05-2019 (22,215) Sale 52,066 0.03 23-08-2019 1,04,000 Purchase 53,12,424 0.68
10-05-2019 (52,066) Sale 0 0.00 30-08-2019 4,70,364 Purchase 57,82,788 0.74
31-01-2020 19,68,984 Purchase 19,68,984 0.25 30-08-2019 (82,650) Sale 57,00,138 0.73
07-02-2020 31,26,079 Purchase 50,95,063 0.63 06-09-2019 2,58,779 Purchase 59,58,917 0.76
20-03-2020 29,45,436 Purchase 80,40,499 0.98 20-09-2019 30,140 Purchase 59,89,057 0.77
31-03-2020 2,20,845 Purchase 95,01,344 1.16 27-09-2019 (9,036) Sale 65,04,571 0.83
31-03-2020 - - 95,01,344 1.16 04-10-2019 3,47,960 Purchase 68,52,531 0.88
2 UTI-MASTERSHARE 11,16,382 0.71
11-10-2019 1,49,866 Purchase 70,02,397 0.90
UNIT SCHEME 05-04-2019 27,000 Purchase 11,43,382 0.73
18-10-2019 81,596 Purchase 70,83,993 0.91
05-04-2019 (27,890) Sale 11,15,492 0.71
18-10-2019 (11,249) Sale 70,72,744 0.90
14-06-2019 (26,110) Sale 10,89,382 0.70
25-10-2019 49,834 Purchase 71,22,578 0.91
21-06-2019 43,57,528 Corporate Action* 54,46,910 0.70
01-11-2019 2,01,770 Purchase 73,24,348 0.94
26-07-2019 52,520 Purchase 54,99,430 0.70
08-11-2019 45,792 Purchase 73,70,140 0.94
13-09-2019 6,21,000 Purchase 61,20,430 0.78
08-11-2019 (2,35,805) Sale 71,34,335 0.91
13-09-2019 (6,21,000) Sale 54,99,430 0.70
22-11-2019 (1,75,940) Sale 69,58,395 0.89
27-09-2019 (3,44,000) Sale 51,55,430 0.66
29-11-2019 (5,131) Sale 69,53,264 0.89
11-10-2019 5,74,280 Purchase 57,29,710 0.73
06-12-2019 3,99,590 Purchase 73,52,854 0.94
01-11-2019 (54,000) Sale 56,75,710 0.73
13-12-2019 (1,10,456) Sale 72,42,398 0.93
08-11-2019 1,12,657 Purchase 57,88,367 0.74
20-12-2019 (1,61,474) Sale 70,80,924 0.91
20-12-2019 (47,000) Sale 57,41,367 0.73
27-12-2019 (34,621) Sale 70,46,303 0.90
13-03-2020 6,52,438 Purchase 63,93,805 0.78
10-01-2020 (11,881) Sale 70,34,422 0.90
20-03-2020 7,65,273 Purchase 71,59,078 0.87
20-03-2020 (1,35,000) Sale 70,24,078 0.86 17-01-2020 (2,75,568) Sale 67,58,854 0.86
27-03-2020 1,00,387 Purchase 71,24,465 0.87 31-01-2020 (3,760) Sale 67,55,094 0.86
31-03-2020 - - 75,67,512 0.92 28-02-2020 (8,091) Sale 69,50,668 0.86
3 INVESCO TRUSTEE 8,94,666 0.57 06-03-2020 3,05,416 Purchase 72,56,084 0.90
PRIVATE LIMITED - 05-04-2019 9,132 Purchase 9,03,798 0.58 13-03-2020 4,78,436 Purchase 77,34,520 0.94
A/C INVESCO INDIA 12-04-2019 7,862 Purchase 9,11,660 0.58 20-03-2020 1,51,876 Purchase 78,86,396 0.96
26-04-2019 83,788 Purchase 9,95,448 0.64 27-03-2020 (4,75,416) Sale 74,10,980 0.90
10-05-2019 6,466 Purchase 10,01,914 0.64 31-03-2020 (5,914) Sale 74,05,066 0.90
24-05-2019 4,921 Purchase 10,06,835 0.64 31-03-2020 - - 74,05,066 0.90
24-05-2019 (8,960) Sale 9,97,875 0.64 4 HDFC TRUSTEE 69,71,210 4.46
31-05-2019 (19,840) Sale 9,78,035 0.63 COMPANY LTD A/C 21-06-2019 2,78,84,840 Corporate Action* 3,48,56,050 4.46
07-06-2019 52,487 Purchase 10,30,522 0.66 - HDFC CHILDREN'S 26-07-2019 1,23,000 Purchase 3,49,79,050 4.47
07-06-2019 (79,981) Sale 9,50,541 0.61 GIFT 26-07-2019 (15,000) Sale 3,49,64,050 4.47
14-06-2019 15,432 Purchase 9,65,973 0.62 27-09-2019 (4,62,250) Sale 3,45,01,800 4.41
21-06-2019 38,63,892 Corporate Action* 48,29,865 0.62 10-01-2020 40,000 Purchase 3,45,41,800 4.42
21-06-2019 80,425 Purchase 49,10,290 0.63 31-01-2020 95,000 Purchase 3,46,36,800 4.43
28-06-2019 (99,410) Sale 48,10,880 0.62 13-03-2020 1,85,000 Purchase 3,48,21,800 4.25
05-07-2019 99,200 Purchase 49,10,080 0.63 27-03-2020 (17,500) Sale 3,48,04,300 4.25
12-07-2019 1,19,249 Purchase 50,29,329 0.64 31-03-2020 - - 3,48,04,300 4.25
26-07-2019 88,328 Purchase 51,17,657 0.65
49 50
SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding
Share Holder beginning of the year Decrease during the year Share Holder beginning of the year Decrease during the year
(01-04-2019) in share (01-04-2019 to 31-03-2020) (01-04-2019) in share (01-04-2019 to 31-03-2020)
holding holding
No. of % of total No. of % of total No. of % of total No. of % of total
shares shares of shares shares of shares shares of shares shares of
the Company the Company the Company the Company
5 OPPENHEIMER 69,24,201 4.43 29-11-2019 (4,20,556) Sale 70,95,701 0.91
DEVELOPING 21-06-2019 2,76,96,804 Corporate Action* 3,46,21,005 4.43 13-12-2019 (67,240) Sale 70,28,461 0.90
MARKETS FUND 22-11-2019 (18,75,606) Sale 3,27,45,399 4.19 20-12-2019 (3,26,426) Sale 67,02,035 0.86
29-11-2019 (13,90,065) Sale 3,13,55,334 4.01 31-12-2019 (13,787) Sale 66,88,248 0.86
06-12-2019 (12,86,295) Sale 3,00,69,039 3.85 24-01-2020 (85,277) Sale 66,02,971 0.84
13-12-2019 (12,64,947) Sale 2,88,04,092 3.68 07-02-2020 (27,897) Sale 65,75,074 0.81
20-12-2019 (11,22,330) Sale 2,76,81,762 3.54 31-03-2020 - - 65,75,074 0.80
27-12-2019 (3,68,199) Sale 2,73,13,563 3.49 8 ADITYA BIRLA SUN 45,87,719 2.93
31-12-2019 (1,64,530) Sale 2,71,49,033 3.47 LIFE TRUSTEE 05-04-2019 (79,600) Sale 45,08,119 2.88
03-01-2020 (2,10,555) Sale 2,69,38,478 3.45 PRIVATE LIMITED A/C 12-04-2019 (50,000) Sale 44,58,119 2.85
10-01-2020 (9,19,679) Sale 2,60,18,799 3.33 19-04-2019 18,000 Purchase 44,76,119 2.86
17-01-2020 (10,95,809) Sale 2,49,22,990 3.19 26-04-2019 (1,46,642) Sale 43,29,477 2.77
24-01-2020 (45,64,872) Sale 2,03,58,118 2.60 03-05-2019 (6,100) Sale 43,23,377 2.77
31-01-2020 (96,30,524) Sale 1,07,27,594 1.37 10-05-2019 40,500 Purchase 43,63,877 2.79
07-02-2020 (51,39,232) Sale 55,88,362 0.69 10-05-2019 (7,600) Sale 43,56,277 2.79
14-02-2020 (13,61,234) Sale 42,27,128 0.52 17-05-2019 (1,49,900) Sale 42,06,377 2.69
21-02-2020 (3,22,708) Sale 39,04,420 0.48 07-06-2019 (14,550) Sale 41,91,827 2.68
28-02-2020 (8,79,796) Sale 30,24,624 0.37 14-06-2019 (15,900) Sale 41,75,927 2.67
06-03-2020 (15,93,864) Sale 14,30,760 0.18 21-06-2019 1,67,03,708 Corporate Action* 2,08,79,635 2.67
13-03-2020 (14,30,760) Sale 0 0.00 28-06-2019 26,900 Purchase 2,09,06,535 2.67
31-03-2020 - - 0 0.00 19-07-2019 (5,57,000) Sale 2,03,49,535 2.60
6 GOVERNMENT OF 0 0.00 02-08-2019 80,100 Purchase 2,04,29,635 2.61
SINGAPORE 07-02-2020 68,59,687 Purchase 68,59,687 0.85 02-08-2019 (14,50,000) Sale 1,89,79,635 2.43
31-03-2020 - - 68,59,687 0.84 09-08-2019 1,50,000 Purchase 1,91,29,635 2.45
7 CARTICA CAPITAL 61,46,787 3.93 09-08-2019 (4,82,000) Sale 1,86,47,635 2.39
LTD 03-05-2019 (77,872) Sale 60,68,915 3.88 16-08-2019 (19,000) Sale 1,86,28,635 2.38
10-05-2019 (1,87,843) Sale 58,81,072 3.76 27-09-2019 (6,86,000) Sale 1,79,42,635 2.29
31-05-2019 (51,860) Sale 58,29,212 3.73 20-12-2019 5,00,000 Purchase 1,84,42,635 2.36
14-06-2019 (34,269) Sale 57,94,943 3.71 17-01-2020 70,000 Purchase 1,85,12,635 2.37
21-06-2019 2,31,79,772 Corporate Action* 2,89,74,715 3.71 31-01-2020 19,50,000 Purchase 2,04,62,635 2.62
21-06-2019 (1,69,404) Sale 2,88,05,311 3.68 07-02-2020 43,75,000 Purchase 2,48,37,635 3.07
19-07-2019 (7,11,613) Sale 2,80,93,698 3.59 14-02-2020 5,00,000 Purchase 2,53,37,635 3.13
26-07-2019 (16,00,579) Sale 2,64,93,119 3.39 06-03-2020 2,62,587 Purchase 2,56,00,222 3.16
02-08-2019 (63,139) Sale 2,64,29,980 3.38 06-03-2020 (3,000) Sale 2,55,97,222 3.16
09-08-2019 (1,20,968) Sale 2,63,09,012 3.37 13-03-2020 4,00,000 Purchase 2,59,97,222 3.17
16-08-2019 (10,32,000) Sale 2,52,77,012 3.23 20-03-2020 20,68,454 Purchase 2,80,65,676 3.42
23-08-2019 (13,38,914) Sale 2,39,38,098 3.06 27-03-2020 16,39,224 Purchase 2,97,04,900 3.62
30-08-2019 (3,70,000) Sale 2,35,68,098 3.01 27-03-2020 (1,06,748) Sale 2,95,98,152 3.61
13-09-2019 (27,42,039) Sale 2,08,26,059 2.66 31-03-2020 33,523 Purchase 2,96,31,675 3.62
20-09-2019 (22,06,316) Sale 1,86,19,743 2.38 31-03-2020 (3,00,000) Sale 2,93,31,675 3.58
27-09-2019 (30,00,000) Sale 1,56,19,743 2.00 31-03-2020 - - 2,93,31,675 3.58
04-10-2019 (5,84,916) Sale 1,50,34,827 1.92 9 SBI MAGNUM 43,54,951 2.79 30-03-2019
11-10-2019 (3,15,652) Sale 1,47,19,175 1.88 MIDCAP FUND 21-06-2019 1,74,19,804 Corporate Action* 2,17,74,755 2.79
18-10-2019 (7,08,462) Sale 1,40,10,713 1.79 21-06-2019 (1,43,000) Sale 2,16,31,755 2.77
25-10-2019 (1,25,496) Sale 1,38,85,217 1.78 02-08-2019 2,98,716 Purchase 2,19,30,471 2.81
01-11-2019 (7,27,047) Sale 1,31,58,170 1.68 09-08-2019 10,00,000 Purchase 2,29,30,471 2.93
08-11-2019 (25,65,700) Sale 1,05,92,470 1.35 30-08-2019 5,00,000 Purchase 2,34,30,471 3.00
15-11-2019 (24,44,037) Sale 81,48,433 1.04 06-09-2019 3,89,181 Purchase 2,38,19,652 3.05
22-11-2019 (6,32,176) Sale 75,16,257 0.96
51 52
SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding
Share Holder beginning of the year Decrease during the year Share Holder beginning of the year Decrease during the year
(01-04-2019) in share (01-04-2019 to 31-03-2020) (01-04-2019) in share (01-04-2019 to 31-03-2020)
holding holding
No. of % of total No. of % of total No. of % of total No. of % of total
the Company the Company the Company the Company
13-09-2019 24,03,819 Purchase 2,62,23,471 3.35 22-11-2019 (2,06,305) Sale 97,05,826 1.24
20-03-2020 4,67,842 Purchase 2,66,91,313 3.26 29-11-2019 (9,100) Sale 96,96,726 1.24
27-03-2020 32,158 Purchase 2,67,23,471 3.26 06-12-2019 (2,259) Sale 96,94,467 1.24
31-03-2020 - - 2,67,23,471 3.26 13-12-2019 (3,435) Sale 96,91,032 1.24
10 MATTHEWS INDIA 26,94,284 1.72 20-12-2019 34,064 Purchase 97,25,096 1.24
FUND 21-06-2019 1,07,77,136 Corporate Action* 1,34,71,420 1.72 27-12-2019 (543) Sale 97,24,553 1.24
22-11-2019 (6,44,156) Sale 1,28,27,264 1.64 31-12-2019 (394) Sale 97,24,159 1.24
06-12-2019 (11,33,642) Sale 1,16,93,622 1.50 10-01-2020 (11,563) Sale 97,12,596 1.24
13-12-2019 (1,03,574) Sale 1,15,90,048 1.48 17-01-2020 (20,133) Sale 96,92,463 1.24
27-12-2019 (42,232) Sale 1,15,47,816 1.48 24-01-2020 (8,055) Sale 96,84,408 1.24
24-01-2020 (12,68,093) Sale 1,02,79,723 1.31 31-01-2020 (8,939) Sale 96,75,469 1.24
07-02-2020 (9,27,370) Sale 93,52,353 1.15 07-02-2020 10,94,150 Purchase 1,07,69,619 1.33
28-02-2020 (1,41,972) Sale 92,10,381 1.14 14-02-2020 31,500 Purchase 1,08,01,119 1.33
06-03-2020 (11,56,518) Sale 80,53,863 0.99 21-02-2020 200 Purchase 1,08,01,319 1.33
13-03-2020 (6,35,496) Sale 74,18,367 0.91 28-02-2020 200 Purchase 1,08,01,519 1.33
20-03-2020 (10,89,027) Sale 63,29,340 0.77 06-03-2020 3,06,665 Purchase 1,11,08,184 1.37
27-03-2020 (11,73,301) Sale 51,56,039 0.63 13-03-2020 5,93,735 Purchase 1,17,01,919 1.43
31-03-2020 (2,83,941) Sale 48,72,098 0.59 20-03-2020 12,08,000 Purchase 1,29,09,919 1.58
31-03-2020 - - 48,72,098 0.59 27-03-2020 9,97,000 Purchase 1,39,06,919 1.70
11 HDFC LIFE 21,57,169 1.38 31-03-2020 (18,531) Sale 1,38,88,388 1.69
INSURANCE 05-04-2019 39 Purchase 21,57,208 1.38 31-03-2020 - - 1,38,88,388 1.69
COMPANY LIMITED 12-04-2019 785 Purchase 21,57,993 1.38 12 L AND T MUTUAL 19,43,400 1.24
19-04-2019 25 Purchase 21,58,018 1.38 FUND TRUSTEE LTD 05-04-2019 97,404 Purchase 20,40,804 1.31
10-05-2019 (6,506) Sale 21,51,512 1.38 - L AND T MID 05-04-2019 (23,312) Sale 20,17,492 1.29
24-05-2019 (30,000) Sale 21,21,512 1.36 CAP FUND 26-04-2019 1,70,596 Purchase 21,88,088 1.40
31-05-2019 (27,000) Sale 20,94,512 1.34 24-05-2019 11,554 Purchase 21,99,642 1.41
07-06-2019 37,000 Purchase 21,31,512 1.36 21-06-2019 87,98,568 Corporate Action* 1,09,98,210 1.41
14-06-2019 (3,500) Sale 21,28,012 1.36 28-06-2019 1,62,530 Purchase 1,11,60,740 1.43
21-06-2019 85,12,048 Corporate Action* 1,06,40,060 1.36 05-07-2019 4,03,702 Purchase 1,15,64,442 1.48
05-07-2019 49,077 Purchase 1,06,89,137 1.37 12-07-2019 1,90,571 Purchase 1,17,55,013 1.50
19-07-2019 4,06,080 Purchase 1,10,95,217 1.42 02-08-2019 8,39,020 Purchase 1,25,94,033 1.61
26-07-2019 1,51,522 Purchase 1,12,46,739 1.44 09-08-2019 3,57,500 Purchase 1,29,51,533 1.66
02-08-2019 (2,73,973) Sale 1,09,72,766 1.40 16-08-2019 2,497 Purchase 1,29,54,030 1.66
09-08-2019 (77,901) Sale 1,08,94,865 1.39 04-10-2019 6,40,967 Purchase 1,35,94,997 1.74
16-08-2019 (28,029) Sale 1,08,66,836 1.39 11-10-2019 3,61,103 Purchase 1,39,56,100 1.79
23-08-2019 (607) Sale 1,08,66,229 1.39 25-10-2019 1,92,000 Purchase 1,41,48,100 1.81
30-08-2019 (5,552) Sale 1,08,60,677 1.39 01-11-2019 7,64,505 Purchase 1,49,12,605 1.91
06-09-2019 58,584 Purchase 1,09,19,261 1.40 22-11-2019 6,89,605 Purchase 1,56,02,210 2.00
13-09-2019 (34,207) Sale 1,08,85,054 1.39 06-12-2019 5,00,000 Purchase 1,61,02,210 2.06
20-09-2019 (5,443) Sale 1,08,79,611 1.39 14-02-2020 (1,22,000) Sale 1,59,80,210 1.97
27-09-2019 (3,14,817) Sale 1,05,64,794 1.35 20-03-2020 4,46,100 Purchase 1,64,26,310 2.00
04-10-2019 (5,961) Sale 1,05,58,833 1.35 31-03-2020 - - 1,64,26,310 2.00
11-10-2019 (8,115) Sale 1,05,50,718 1.35 13 SMALLCAP WORLD 15,73,000 1.01
18-10-2019 (743) Sale 1,05,49,975 1.35 FUND, INC 21-06-2019 62,92,000 Corporate Action* 78,65,000 1.01
25-10-2019 (2,30,926) Sale 1,03,19,049 1.32 27-09-2019 2,36,619 Purchase 81,01,619 1.04
01-11-2019 (1,09,063) Sale 1,02,09,986 1.31 04-10-2019 73,581 Purchase 81,75,200 1.05
08-11-2019 (2,131) Sale 1,02,07,855 1.31 11-10-2019 2,76,368 Purchase 84,51,568 1.08
15-11-2019 (2,95,724) Sale 99,12,131 1.27 18-10-2019 1,33,431 Purchase 85,84,999 1.10
53 54
SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding
(v) Shareholding of Directors and Key Managerial Personnel (KMP):
Share Holder beginning of the year Decrease during the year SN. Name of the Shareholding at the Date Increase/ Reason Cumulative shareholding
(01-04-2019) in share (01-04-2019 to 31-03-2020) Share Holder beginning of the year Decrease during the year
holding (01-04-2019) in share (01-04-2019 to 31-03-2020)
No. of % of total No. of % of total holding
No. of % of total No. of % of total
the Company the Company (Face value the Company (Face value the Company
08-11-2019 4,80,001 Purchase 90,65,000 1.16 of ` 10 each) of ` 2 each)
15-11-2019 1,35,831 Purchase 92,00,831 1.18 Directors:
22-11-2019 46,60,169 Purchase 1,38,61,000 1.77
1. Mr. M.M. Murugappan 4,207 0.003
13-03-2020 (8,38,087) Sale 1,30,22,913 1.59

31-03-2020 21,035 0.003
20-03-2020 (51,57,913) Sale 78,65,000 0.96
27-03-2020 (38,99,303) Sale 39,65,697 0.48 2. Mr. Ashok Kumar Barat 0 0
31-03-2020 (12,35,693) Sale 27,30,004 0.33
31-03-2020 0 0
31-03-2020 - - 27,30,004 0.33 3. Mr. N. Ramesh Rajan 0 0
14 AXIS MUTUAL FUND 14,94,151 0.96
31-03-2020 0 0
TRUSTEE LIMITED 05-04-2019 65,565 Purchase 15,59,716 1.00
4. Ms. Bhama 0 0
A/C AXIS MUTUAL 03-05-2019 16,435 Purchase 15,76,151 1.01
FUND 24-05-2019 1,03,717 Purchase 16,79,868 1.07
Krishnamurthy*
31-03-2020 0 0
31-05-2019 33,600 Purchase 17,13,468 1.10 5. Mr. Rohan Verma 0 0
31-05-2019 (342) Sale 17,13,126 1.10
31-03-2020 0 0
07-06-2019 32,595 Purchase 17,45,721 1.12 6. Mr. Arun Alagappan 1,90,000 0.122
21-06-2019 69,82,884 Corporate Action* 87,28,605 1.12

31-03-2020
9,50,000 0.116
21-06-2019 90,025 Purchase 88,18,630 1.13
28-06-2019 (1,875) Sale 88,16,755 1.13 7. Mr. Ravindra Kumar 16,047 0.010
12-07-2019 1,70,479 Purchase 89,87,234 1.15 Kundu$
31-03-2020 80,235 0.010
23-08-2019 (1,246) Sale 89,85,988 1.15 8. Ms. Bharati Rao@ 0 0
30-08-2019 37,843 Purchase 90,23,831 1.15
31-03-2020
Not applicable
06-09-2019 59,854 Purchase 90,83,685 1.16
KMP:
13-09-2019 (473) Sale 90,83,212 1.16
9. Mr. D. Arul Selvan 14,840 0.009
20-09-2019 1,09,678 Purchase 91,92,890 1.18
27-09-2019 9,48,503 Purchase 1,01,41,393 1.30
31-03-2020 74,200 0.009
27-09-2019 (464) Sale 1,01,40,929 1.30 10. Ms. P. Sujatha 16,527 0.011
30-09-2019 2,20,000 Purchase 1,03,60,929 1.33
31-03-2020 82,635 0.010
30-09-2019 (1,00,000) Sale 1,02,60,929 1.31
25-10-2019 69,639 Purchase 1,03,30,568 1.32 Note:
25-10-2019 (1,35,000) Sale 1,01,95,568 1.30
* - Appointed as an additional director effective 31 July, 2019.
01-11-2019 3,56,008 Purchase 1,05,51,576 1.35
$ - Appointed as the executive director effective 23 January, 2020.
01-11-2019 (1,71,137) Sale 1,03,80,439 1.33
08-11-2019 (71,643) Sale 1,03,08,796 1.32 @ - Retired at the close of 41st annual general meeting held on 30 July, 2019.
22-11-2019 1,77,985 Purchase 1,04,86,781 1.34 Number of shares as at 31 March, 2020 reflects the sub-divided equity shares of face value ` 2 each.
22-11-2019 (648) Sale 1,04,86,133 1.34
29-11-2019 1,20,000 Purchase 1,06,06,133 1.36
06-12-2019 1,20,000 Purchase 1,07,26,133 1.37
17-01-2020 1,40,000 Purchase 1,08,66,133 1.39
07-02-2020 10,93,750 Purchase 1,19,59,883 1.48
07-02-2020 (1,257) Sale 1,19,58,626 1.48
14-02-2020 2,39,861 Purchase 1,21,98,487 1.51
14-02-2020 (1,164) Sale 1,21,97,323 1.51
20-03-2020 2,40,000 Purchase 1,24,37,323 1.52
27-03-2020 8,52,264 Purchase 1,32,89,587 1.62
31-03-2020 - - 1,32,89,587 1.62
Notes:
1. The shares of the company are traded on a daily basis and hence the dates above refer to the beneficiary position dates.
2. The above list comprises Top 10 shareholders as on 01-04-2019 and as on 31-03-2020.
* Corporate action for sub-division of equity shares of ₹ 10/- each to equity shares of ₹ 2/- each.
55 56
V. INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING / ACCRUED BUT NOT DUE FOR PAYMENT: B. Remuneration to other directors
` in lakhs
` in lakhs
SN. Particulars of Remuneration Name of Directors
Secured Loans Unsecured Loans Deposits Total Indebtedness
excluding deposits 1. Independent Directors N. Ramesh Ashok Bhama Rohan Bharati Total
Rajan Kumar Barat Krishnamurthy Verma Rao Amount
Indebtedness at the beginning of the financial year
i. Principal Amount@ 42,05,819 7,71,275 - 49,77,094
- Fee for attending board / 6.40 7.80 4.80 3.10 0.95 23.05
ii. Interest due but not paid - - - -
committee meetings
iii. Interest accrued but not due 61,001 18,579 - 79,580
- Commission 12.00 10.00 6.69 10.00 3.31 42.00
Total (i+ii+iii) 42,66,820 7,89,854 - 50,56,674
- Others - - - - - -
Change in indebtedness during the financial year
Total (1) 18.40 17.80 11.49 13.10 4.26 65.05
• Addition 42,51,421 19,28,419 - 61,79,840
2. Other Non-Executive M.M. Murugappan Total Amount
• Reduction 35,90,570 21,33,250 - 57,23,820
Director
Net Change 6,60,851 (2,04,831) - 4,56,020
Indebtedness at the end of the financial year - Fee for attending board 5.00 5.00
i. Principal Amount# 48,66,670 5,66,444 - 54,33,114 committee meetings
ii. Interest due but not paid - - - - - Commission 10.00 10.00
iii. Interest accrued but not due 50,057 17,373 - 67,430 - Others - -
Total (2) 15.00 15.00
Total (i+ii+iii) 49,16,727 5,83,817 - 55,00,544
Total (B)=(1+2) 80.05
@ net of unamortised charges and investment 36,107 14,745 50,852
Total Managerial 80.05
in pass through certificate
Remuneration
# net of unamortised charges and investment 35,497 7,376 42,873 Overall Ceiling as per the Act 1,597.29
in pass through certificate
C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL ` in lakhs
A. Remuneration to executive director(s) SN. Particulars of Remuneration Key Managerial Personnel Total
` in lakhs
Company Secretary Chief Financial Officer
SN. Particulars of Remuneration Arun Alagappan, Ravindra Kumar
Managing Kundu, 1. Gross salary
Director Executive Director (a) Salary as per provisions contained in section 17(1) 111.04 138.19 249.23
(w.e.f. 23-Jan-2020) of the Income-tax Act, 1961
1 Gross salary (b) Value of perquisites u/s 17(2) of the 5.54 8.44 13.98
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 335.95 22.41 Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income-tax 27.83 2.91 (c) Profits in lieu of salary under section 17(3) - - -
(c) Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961 of the Income-tax Act, 1961
2 Stock Option 2. Stock Option*
3 Sweat Equity (a) Allotment of Shares (including premium) - - -
4 Commission (b) Share application money pending allotment - - -
- as % of profit 3. Sweat Equity - - -
- others, specify 4. Commission - - -
5 Others, please specify* - as % of profit - - -
Total 363.78 25.32 - others, specify - - -
Total remuneration paid to executive director(s) 389.10 5. Others, please specify - - -
Ceiling as per the Act 15,972.91 Total 116.58 146.63 263.21
* Total does not include the value of stock options.
VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES AGAINST THE COMPANY / DIRECTORS / OFFICERS IN DEFAULT
There were no penalties, punishment or compounding of offences during the year ended 31 March, 2020.
57 58
Annexure-III
7. Supporting special children ‐ Chola believes that every child Web link to the company’s CSR policy is as follows:
deserves not just good education but also they have equal https://www.cholamandalam.com/Company‐policies.aspx
access to the best play opportunities. Chola has sponsored 2) The composition of the CSR committee:
CSR Report special playground equipment, special furniture and other

infrastructure for children with special needs.

Mr. M.M. Murugappan, (Chairman)
Ms. Bhama Krishnamurthy, (Independent Director)
Annual Report on Corporate Social Responsibility (CSR) Activities 8. Support towards disaster relief ‐ With a vision to enable Mr. Arun Alagappan, (Managing Director)
people ‘enter a better life’, Chola has always been a 3) Average net profits of the company for last three financial
1) A brief outline of the company’s CSR policy, including entire life. Chola has implemented a trucker’s health responsible corporate citizen supporting welfare activities years:
overview of projects or programs the company, undertakes program and successful organized eye camps across 10 and good causes and helping people grow to a healthy ` 1,44,336.67 lakhs
and a reference to the website link to the CSR policy: states benefiting over 52,500 persons from the trucking future by extending the support to disaster relief in Kerala 4) Prescribed CSR Expenditure (two per cent of the amount):

Chola believes that sustainable development promotes communities. It also supported eleven vision centers and and also towards COVID‐19 containment. ` 2,886.73 lakhs
economic growth, greater social well‐ being, and protection of eye camp in 11 state. Also have conducted 150 health
5) Details of CSR spend during the financial year:
the environment. Every CSR project in Chola is designed to be camps and Vision Center in Kishangarh. It was identified ` in lakhs
sustainable in nature and not as a onetime activity. CSR projects that almost 45% people from trucking community suffer Program Thematic Area State District Execution Amount
in Chola are implemented across the operating geographies from cataract and poor vision. They have been provided Partner
including the rural community across India. Chola’s CSR efforts with spectacles and referred for cataract surgery either Scholarship Program for Art Interns Art & Culture Tamil Nadu Chennai Dakshina Chitra (Madras 15.00
are directed towards offering the best path forward for helping free or at affordable cost. Chola have extended its health Craft Foundation)
Spreading awareness on culture and Art & Culture Tamil Nadu Chennai Hindu Spiritual 12.50
people and communities to Enter a Better Life. services to the children of truck drivers by doing surgeries history of India and Service Foundation
for children of truck drivers across India. Spreading awareness in Arts & Crafts Art & Culture Tamil Nadu Chennai Kalakshetra Foundation 26.05

In the previous financial years, Chola’s CSR activities Program to educate young children about culture Art & Culture Tamil Nadu Chennai Little Theater 5.00
encompassed major themes like Preventive Health Care, 3.
Improving the quality of education through arts and Canal De-Silting Climate & Environment Tamil Nadu Tiruvallur ETM Trust 12.92
Cauvery Calling’ Conserving the River Cauvery Climate & Environment Karnataka & In the riparian ISHA Outreach 25.00
Providing Water and Sanitation, promoting education, technology ‐ Education takes a backseat in several rural Tamil Nadu districts
conservation of natural resources, protecting environment, communities across Tamil Nadu, where the literacy rate is Innovative Sewage Treatment Plant Climate & Environment Tamil Nadu Lovedale, Lawrence Schools 25.00
conservation of art and culture, promotion of sports, providing Coonoor, Nilgiris
poor, there is a growing number of school drop outs, there Flood Disaster Relief in Kerala Climate & Environment Pan Kerala Pan Kerala Mathrubhumi 12.50
funds for technology incubators and rural development (Disaster Relief)
is a need for improvement in school infrastructure and
projects across 12 states and one union territory. Enumerating and spreading awareness Climate & Environment Pan India Spiti and Nature Conservation 11.75
there are no alternative educational opportunities for these about various bird species Lakshadweep Foundation (NCF)
Company’s Strategic Directions school children. To facilitate access to quality education for Renovation of Old Class Rooms in school Education Tamil Nadu Vembakkam, AID India 10.00
Kanchipuram
The key focus areas where development programs have been the less privileged children, the focus is to make learning Murugappa Polytechnic College Education Tamil Nadu Chennai AMM Foundation 107.50
initiated are: fun, concentrate on the overall development of the child, Mobile Science Lab Education Tamil Nadu Pudukkottai, AMM Foundation 15.33
Sivagangai
1. Access to quality health care services ‐ In several rural use of arts and technology to improve learning proficiency Murugappa Science Center Education Tamil Nadu Chennai AMM Foundation 25.00
and reduce school dropouts. Scholarships for Children of Education Rajasthan Kishangarh Aravali 16.99
and remote areas across India, gaining access to quality Trucking Community
health care services is a challenge. Bad road conditions and 4. Sports - Chola extends its support towards the young Life Skills Training Education Pan India Pan India ICT Academy 2.70
Financial Literacy of Trucking Community Education Pan India Pan India ICT Academy 34.84
limited transport facilities make even primary healthcare sportsmen training them for squash, lawn tennis for Support to girls students from slums Education Tamil Nadu Shenoy Nagar Indian Council for 5.05
facilities inaccessible. Chola has taken a step forward Olympics. Sports have a huge role to play when it comes to Slums, Chennai Child Welfare (ICCW)
to address this issue in many parts of India. Chola has Education through Art at Panchayat Education Tamil Nadu Chennai NalandaWay 15.87
nation building. Supporting sports whether at national or Union Middle Schools
implemented and supported projects that take healthcare international levels can enrich the social and cultural fabric Financial Literacy of Trucking Community Education Gujarat Kutch Prayas 35.00
facilities to the doorsteps of communities. With the help of Research Studies on Agriculture and Education Tamil Nadu Chennai Shri AMM Murugappa 424.00
of communities. Solar Energy Chettiar Research Centre
mobile medical vans and health camps that are regularly (MCRC)
conducted, people living in rural areas are able to get 5.
Environmental sustainability ‐ Chola supports training Scholarships for Children of Education Tamil Nadu Karur, Namakkal, Women’s Organisation 23.62
programs for conserving wildlife and thus part of the Trucking Community Paramathi Velur, in Rural Development
treatment for a wide range of ailments anddiseases Salem & Trichy (WORD)
ecology, and specific infrastructural support for conserving Support People with Visual Impairment (PVI) Education & Disability Tamil Nadu Chennai Al Lakshmi Achi 0.60
2. Eye & health camps for truck drivers ‐ Truck drivers have
wildlife endangered by extinction. with digitally enhanced watches empowerment Educational and
always been close to Chola’s heart and Chola is committed Charitable Trust
to their overall wellbeing. Due to the intense working 6. Rural development ‐ Chola adopts villages and extends CNC Tutor Machine for Students with disability Education & Disability Tamil Nadu Katpadi, Vellore Worth Trust 40.25
empowerment
conditions, truck drivers face various health issues like interventions such as individual toilets, purified drinking For other Education and Health Education and Health Tamil Nadu Across Tamil Nadu AMM Foundation 426.83
cataract, high blood pressure, diabetes, etc. Majority of water facilities, toilets and water facilities in schools etc. Programs (Corpus)
Valliammai Achi Hospital Health Tamil Nadu Kanyakumari AMM Foundation 29.20
truck drivers have not had any health screening in their focusing on the upliftment of rural population. New Operation Theater Block at Sir Health Tamil Nadu Chennai AMM Foundation 362.50
Ivan Stedeford Hospital
59 60
5) Details of CSR spend during the financial year: (Contd.) c. Manner in which the amount spent during the financial year is detailed below: (Contd.)
` in lakhs
(1) (2) (3) (4) (5) (6) (7) (8)
Program Thematic Area State District Execution Amount
Partner SN. CSR project or Sector in Projects or Amount Amount Cumulative Amount
activity identified which the program outlay spent on the expenditure spent: Direct
Mobile Health Clinics Health Assam Guwahati AMM Foundation 33.06 project is (1) Local area (budget) projects or up to the (D) or
Health Camps and Vision Center Health Rajasthan 150 Camps and Aravali 94.08 covered or other projects or programs reporting through
one Vision Center (2) Specify programs wise Sub-heads: period implementing
at Kishangarh the State and (1) Direct agency (IA)
Raahi Vision Centers for Trucking Community Health Pan India 11 Centres lying Sightsavers India 360.85 district expenditure
on the Golden where projects on projects
Quadrilateral or program or programs
Heart Surgeries for Children of Health Pan India Pan India Sri Satya Sai 132.00
were undertaken (2) Overheads
Trucking Community Sanjeevani Hospital
Awareness Program on Cancer Health Tamil Nadu Chennai Tiara Haemophilia and 10.00 ` in lakhs
and Haemophilia Cancer Foundation 3 Spreading awareness in Art & Culture Chennai 26.05 26.05 26.05 IA
Operation theater for Equine Hospital Health Tamil Nadu Chennai Madras Race Club 55.00 Arts & Crafts
(Animal Welfare) Equestrian Trust 4 Program to educate young Art & Culture Chennai 5.00 5.00 5.00 IA
Battery Operated Vehicle to transport Persons Health & Disability Tamil Nadu Chennai United Way 24.99 children about culture
with Disabilities (PwDs) in the premises of empowerment 5 Canal De-Silting Climate & Tiruvallur 12.92 12.92 12.92 IA
NIEPMED Environment
COVID-19 Disease Containment (Calamity) Health (Disaster Tamil Nadu Pan Tamil Nadu AMM Foundation 104.00 6 Cauvery calling conserving Climate & In the Riparian 25.00 25.00 25.00 IA
in Tamil Nadu Relief) the River Cauvery Environment districts
Swasthya Odisha Phase-I Rural Development Odisha Angul Women Education and 50.02 7 Innovative Sewage Climate & Lovedale, Coonoor, 25.00 25.00 25.00 IA
Environment (WEE) Treatment Plant Environment Nilgiris
Swasthya Odisha Phase-II Rural Development Odisha Cuttack Women Education and 52.28 8 Flood Disaster Relief in Kerala Climate & Pan Kerala 12.50 12.50 12.50 IA
Environment (WEE) Environment
Training Table Tennis Players Sports Tamil Nadu Chennai A.K.G.M. Table Tennis Trust 5.00 (Disaster Relief)
Murugappa Youth Football Academy Sports Tamil Nadu Chennai AMM Foundation 19.95 9 Enumerating and spreading Climate & Spiti and 11.75 11.75 11.75 IA
Training Lawn Tennis Players Sports West Bengal Kolkata Enrico Piperno Tennis Trust 5.00 awareness about various Environment Lakshadweep
Training a team of women for All India Sports Tamil Nadu Chennai Little Theater 5.00 bird species
Sailing Championship 10 Renovation of Old Class Education Vembakkam, 10.00 10.00 10.00 IA
Support to Tennis Players Sports Tamil Nadu Chennai Tamil Nadu Tennis 30.00 Rooms in school Kanchipuram
11 Murugappa Polytechnic Education Chennai 107.50 107.50 107.50 Group
Association
College Foundation
Training Squash Players Sports Tamil Nadu Chennai The Squash Racquet 5.00
12 Mobile Science Lab Education Pudukkottai, 15.33 15.33 15.33 Group
Federation of India
Sivagangai Foundation
Swacch Odisha WASH Odisha Nuapada Regional Center for 56.50
13 Murugappa Science Center Education Chennai 25.00 25.00 25.00 Group
Development
Foundation
Cooperation (RCDC)
14 Scholarships for Children of Education Kishangarh 16.99 16.99 16.99 IA
Swaccha Telangana–Phase II WASH Telangana Adilabad Bala Vikasa Social 47.37 Trucking Community
Service Society 15 Life Skills Training Education Pan India 2.70 2.70 2.70 IA
Administrative Expenses 77.33 16 Financial Literacy of Education Pan India 34.84 34.84 34.84 IA
TOTAL 2,888.43 Trucking Community
17 Support to girls students Education Shenoy Nagar 5.05 5.05 5.05 IA
a. Total amount to be spent for the financial year: ` 2,886.73 lakhs
from slums Slums, Chennai
b. Amount unspent, if any: Nil 18 Education through Art at Education Chennai 15.87 15.87 15.87 IA
Panchayat Union Middle Schools
c. Manner in which the amount spent during the financial year is detailed below: 19 Financial Literacy of Education Kutch 35.00 35.00 35.00 IA
(1) (2) (3) (4) (5) (6) (7) (8) Trucking Community
20 Research Studies on Education Chennai 424.00 424.00 424.00 Group
SN. CSR project or Sector in Projects or Amount Amount Cumulative Amount Agriculture and Solar Energy Foundation
activity identified which the program outlay spent on the expenditure spent: Direct 21 Scholarships for Children Education Karur, Namakkal, 23.62 23.62 23.62 IA
project is (1) Local area (budget) projects or up to the (D) or of Trucking Community
covered or other projects or programs reporting through 22 Support People with Visual Education & Chennai 0.60 0.60 0.60 IA
(2) Specify programs wise Sub-heads: period implementing Impairment (PVI) with digitally Disability
the State and (1) Direct agency (IA) enhanced watches empowerment
district expenditure 23 CNC Tutor Machine for Education & Katpadi, Vellore 40.25 40.25 40.25 IA
where projects on projects Students with disability Disability
or program or programs empowerment
were undertaken (2) Overheads 24 For other Education and Health Education Across Tamil Nadu 426.83 426.83 426.83 Group
Programs (Corpus) and Health Foundation
` in lakhs
25 Valliammai Achi Hospital Health Kanyakumari 29.20 29.20 29.20 Group
1 Scholarship Program Art & Culture Chennai 15.00 15.00 15.00 IA Foundation
for Art Interns 26 New Operation Theater Block Health Chennai 362.50 362.50 362.50 Group
2 Spreading awareness on Art & Culture Chennai 12.50 12.50 12.50 IA at Sir Ivan Stedeford Hospital Foundation
culture and history of India 27 Mobile Health Clinics Health Guwahati 33.06 33.06 33.06 Group
Foundation
61 62
Annexure-IV
c. Manner in which the amount spent during the financial year is detailed below: (Contd.)
(1) (2) (3) (4) (5) (6) (7) (8)

SN. CSR project or Sector in Projects or Amount Amount Cumulative Amount
activity identified which the program outlay spent on the expenditure spent: Direct

project is
covered
(1) Local area
or other
(budget)
projects or
projects or
programs
up to the
reporting
(D) or
through
Information under section 197(12) of the Companies Act, 2013 read with
(2) Specify programs wise Sub-heads: period implementing Rule 5 of the Companies (Appointment and Remuneration of Managerial
the State and (1) Direct agency (IA)
district expenditure Personnel) Rules, 2014 and forming part of the board’s report for the year
where projects on projects
or programs ended 31 March, 2020
(2) Overheads
` in lakhs
Nature of Disclosure Particulars
28 Health Camps and Health 150 Camps and one 94.08 94.08 94.08 IA
Vision Center Vision Center at Ratio of the remuneration of each Name of the Director / Designation
a) % increase of Ratio of
Kishangarh director to the median remuneration Remuneration in Remuneration to
29 Raahi Vision Centers for Health 11 Centres lying on 360.85 360.85 360.85 IA of the employees of the company for 2020 as compared Median
Trucking Community the Golden the financial year to 2019# Remuneration of
Quadrilateral employees
30 Heart Surgeries for Children Health Pan India 132.00 132.00 132.00 IA Non-Executive Directors
of Trucking Community
31 Awareness Program on Health Chennai 10.00 10.00 10.00 IA Mr. M.M. Murugappan, Non-executive Director / Chairman 33.33 1.64:1
Cancer and Haemophilia Mr. Ashok Kumar Barat, Non-executive 33.33 1.64:1
32 Operation theater for Health Chennai 55.00 55.00 55.00 IA
Equine Hospital (Animal Welfare) / Independent Director
33 Battery Operated Vehicle to Health & Chennai 24.99 24.99 24.99 IA Mr. N. Ramesh Rajan, Non-executive 60.00 1.97:1
transport Persons with Disability
Disabilities (PwDs) in the empowerment / Independent Director
premises of NIEPMED
Mr. Rohan Verma, Non-executive 33.33 1.64:1
34 COVID-19 Disease Health Pan Tamil Nadu 104.00 104.00 104.00 Group
Containment (Calamity) (Disaster Relief) Foundation / Independent Director
in Tamil Nadu
35 Swasthya Odisha Phase-I Rural Angul 50.02 50.02 50.02 IA Ms. Bhama Krishnamurthy, Non-executive NA NA
Development / Independent Director (Since 31 July, 2019)
36 Swasthya Odisha Phase-II Rural Cuttack 52.28 52.28 52.28 IA
Development Ms. Bharati Rao, Non-executive 33.33 1.64:1
37 Training Table Tennis Players Sports Chennai 5.00 5.00 5.00 IA / Independent Director (Up to 30 July, 2019)
38 Murugappa Youth Sports Chennai 19.95 19.95 19.95 Group
Football Academy Foundation Executive Directors
39 Training of Lawn Tennis Sports Kolkata 5.00 5.00 5.00 IA
for Olympics Mr. Arun Alagappan, Managing Director 6.42% 62.79:1
40 Training a team of women for Sports Chennai 5.00 5.00 5.00 IA
All India Sailing Championship Mr. Ravindra Kumar Kundu, Executive Director NA 6.10:1
41 Supporting Tennis Players Sports Chennai 30.00 30.00 30.00 IA (Since 23 January, 2020)
for Olympics
42 Training Squash Players Sports Chennai 5.00 5.00 5.00 IA b) Percentage increase in remuneration Name of the KMP / Designation % increase
43 Swacch Odisha WASH Nuapada 56.50 56.50 56.50 IA of Chief Financial Officer and in remuneration
44 Swaccha Telangana – Phase II WASH Adilabad 47.37 47.37 47.37 IA Company Secretary in the financial
in 2020 as
45 Administrative Expenses 77.33 77.33 77.33 D
year compared to 2019
TOTAL 2,888.43 2,888.43 2,888.43

Mr. D. Arul Selvan, Chief Financial Officer 14.30%
6) In case the company has failed to spend the two per cent of the average net profit of the last three financial years or any part
thereof, the company shall provide the reasons for not spending the amount in its Board’s report: Ms. P. Sujatha, Company Secretary 6.64%
Not applicable
Percentage increase in median 16% increase in median remuneration
c)
7) A responsibility statement of the CSR committee that the implementation and monitoring of CSR Policy, is in compliance with remuneration of employees in the
CSR objectives and Policy of the company: financial year
The CSR committee confirms that the implementation and monitoring of the CSR Policy is in compliance with the CSR objectives and
policy of the company.
On behalf of the board
Place : Chennai Arun Alagappan M.M. Murugappan

Date : June 3, 2020 Managing Director Chairman ‐ CSR Committee
63 64
Nature of Disclosure
d)
Number of permanent employees 7,873
on the rolls of company (as of
Particulars
Management Discussion
and Analysis
31 March, 2020)
e) Average percentile increase already For employees other than managerial personnel who
made in the salaries of employees were in employment for the whole of FY 19 and FY 20,
other than the managerial personnel the average increase is 10.41%. The average increase for
in the last financial year and its managerial personnel is 9.12%.
comparison with the percentile
increase in the managerial
remuneration and justification
MACROECONOMIC OVERVIEW deepen, with adverse implications for India. The fall of international
thereof and point out if there are
crude prices could, however, provide some relief in the form of
any exceptional circumstances The financial year 2019-20 began with the Lok Sabha elections in
trade gains. In addition, the government and RBI have been taking
for increase in the managerial April – May and the newly formed government took a strong stance
steps to mitigate the economic impact of the pandemic through
remuneration on economic development, with the aspiration to reach a $5 trillion
stimulus packages, cuts to repo and reverse repo rates, liquidity
economy by 2024. The Economic Survey published in July 2019 with
f ) Affirmation that the remuneration is The remuneration is in line with the remuneration policy infusion through Targeted Long Term Repo Operations (TLTROs),
the theme of wealth creation, pro-business policies and corporate
as per the remuneration policy of the of the company. and loosened the liquidity criteria for banks and NBFCs.
tax rate cuts of September 2019 were in line with the aspirations.
company
At the end of August 2019, the ministry of finance announced that INDUSTRY GROWTH PROSPECTS
10 Public Sector Banks were to be merged into 4. Meanwhile, RBI
Note: systematically reduced the repo policy rates over the course of the AUTO INDUSTRY
# Commission/Remuneration figures have been annualised. year, from 6.25% at the end of FY 19 to 4.40% at the end of FY 20. The domestic commercial vehicle industry was faced with the
Despite these interventions, FY 20 showed a slowdown in growth impact of multiple headwinds in FY 20 like reduced freight demand
from the previous year. Implied real GDP growth was estimated at 5%, due to the revised axle load norms, lesser market load availability

down from FY 19 figure of 6.1%. 2019-20 was also negative for the due to lower GDP growth, dampened BS VI pre buying in Q4 and
On behalf of the board automobile industry, with sales down in passenger vehicle by 16%, the COVID-19 impact which led to full lockdown from 24 March,
commercial vehicles by 29% and two wheelers by 18%. Similarly, 2020. The commercial vehicle industry closed FY 20 with a 29%
Place : Chennai M.M. Murugappan degrowth which is the steepest degrowth in more than 15 years
Date : June 3, 2020 Chairman Global economic activity was also consistently slow paced and
followed a downward trajectory: year over year real GDP growth was with medium and heavy commercial vehicle (MHCV’s) contributing
recorded at 2.9% as of Q3 2019 compared to 3.6% in the previous year. to 47% degrowth followed by light commercial vehicle (LCV’s) at
21% degrowth and buses with 7% degrowth. Domestic commercial
The outbreak of the COVID-19 pandemic in January, 2020 brought
vehicle sales is expected to fall by 20% - 25% in FY 21 considering
the global economy to almost a standstill, with a high possibility
the macroeconomic challenges posed by the pandemic outbreak.
of slipping into a recession. Several industries starting with travel,
The extent of recovery in construction, manufacturing, industrial
tourism and hospitality were immediately hit, with manufacturing
output and consumption demand are key factors to watch out for
and services following soon afterwards. Crude oil prices plummeted,
a quicker recovery in FY 21. MHCV (Truck) sales are expected to
and from January, 2020 panic sell-off resulted in wealth destruction
close FY 21 with further decline of 12-14%. Despite the expectation
in equity markets across advanced and emerging economies alike.
of uptick in rural demand due to good rabi output, the outbreak
In India, the government announced a nationwide lockdown from of COVID-19 has led to restricted movement of goods and lesser
March 24, 2020 in an effort to contain the spread of the disease, demand for consumption goods. Due to these factors, the LCV
which led to unprecedented economic shock. The lockdown has (Truck) segment is expected to contract further by 7-9% during
resulted in a liquidity crunch, followed by a labor shortage. RBI FY 21. The passenger carrier segment (buses) would also continue
announced three months moratorium for loans and extended it by to face challenges due to curbs in operation of schools, colleges
another three months from March 2020 till August 2020 to alleviate and offices due to the pandemic, leading to a 8-10% contraction
some of the financial burden on the public. during FY 21. Any prolonged disruptions and delay in recovery of
Outlook for the current financial year continues to remain macro-economic factors will further dampen the recovery in FY 21.
uncertain, with the COVID-19 situation evolving each day. Apart However, used commercial vehicle sales is likely to be less impacted
from agriculture and related activities, most other sectors of the in FY 21 considering lower market prices, BS VI transitioning and
economy have been adversely impacted by the pandemic and extended time gap in regularization of the new vehicle supply chain.
are expected to show de-growth. India's GDP growth for FY 21 is Domestic car and utility vehicle industry has witnessed two
now projected to reduce significantly as compared to pre-COVID consecutive years of decline first time in a decade with a degrowth
projections of around 5%. If COVID-19 is prolonged and supply of 18% in FY 20 which were majorly due to muted consumer
chain disruptions get accentuated, the global slowdown could sentiments and higher cost of ownership by way of increased fuel
65 66
prices, higher insurance outflow and higher interest rates. Car and out-pace the housing sector and is estimated between 15-20%. The uninterrupted operations during COVID-19 lockdown. The business customer onboarding, KYC verification, credit analysis till
utility vehicles might see significant drop in H1 of FY 21 considering disbursements for the year were also impacted by the COVID-19 continues to capitalize on its people, process and technological disbursement. This reimagination has resulted in the development
reduced discretionary purchases due to the COVID-19 which has related lockdown in March 2020. capabilities to maximize returns on assets (ROA). Industry leading and implementation of a new loan origination system which is
impacted individual income growth. However, repulsion to public The asset quality in the sector deteriorated largely due to stress domain and strategy consulting firms have been engaged to expected to help digitize the loan journey and support the business
transport is expected to drive some demand in the small passenger in the construction finance portfolio which faced liquidity issues, create a highly productive workforce leveraging digital credit to make better and faster underwriting decisions. The business has
vehicle space post ease of lockdown but the overall outlook for car delays in completion of projects, stress on incomes due to economic underwriting, cost effective collections processes, and digital developed an early warning system to predict defaults, which would
and utility vehicle is trending towards a degrowth of 20-24% in FY 21. slowdown and COVID epidemic. Financiers with lower exposure to backend operations. The company has designed a multi-pronged strengthen collection efforts and make data driven decisions, along
Tractor industry had a de-growth of 10% in FY 20 due to weak farm construction finance and under-construction risk with sufficient long-term strategy to minimize the cost of operations, credit losses
with a fully functional call center dedicated to collections. Online
sentiments in the first half of the year along with erratic rainfall and liquidity are better placed to navigate the current market and and maximize ROA and customer experience. Operating model
payment modes for collections have been enhanced to provide
onslaught of COVID-19 during March, 2020. A faster recovery of emerge stronger. Analysts expect the affordable housing demand enhancements have been prioritized and are being implemented
customers support with multiple payment options.
the rural sector which has been mostly insulated from the impact to continue to outpace the overall housing sector in FY 21. for re-imagination of existing processes, to augment sales, drive
of COVID-19 together with a good rabi harvest, normal monsoon, operating efficiencies, reduce costs, and balance credit risk through With an aim to improve process efficiency, the business has initiated
Regulatory and Fiscal Environment remains conducive for the a productivity drive during the year for multiple workstreams
government support through farm subsidies and direct income better pricing. The business will continue to expand and strengthen
demand in affordable housing segment. The national mission of
support to farmers will aid the tractor demand in H2 FY 21. Clearing its existing relationships with customers, manufacturers, brokers across frontline sales and credit functions. The business is also in
‘Housing for All by 2022’, the PMAY (Pradhan Mantri Awas Yojana) -
supply chain bottlenecks and availability of labor for Original and dealers, utilizing new tools and platforms such as Gaadi Bazaar the process of strengthening training capabilities to upskill sales
CLSS (Credit Linked Subsidy Scheme), implementation of Real Estate
Equipment Manufacturers (OEMs) is key to ensure supply post with the objective of best price discovery for used vehicles through teams, and in parallel have structured performance improvement
Regulatory Authority (RERA), higher tax benefits for affordable
lockdown. Tractor sales is expected to degrow in FY 21 by 5-10% a seamless sale-purchase process, create and grow a customer, programs to improve the productivity of field teams. The business
housing were in line with the aspirations of the government to
based on current trends. Government’s thrust towards doubling dealer/broker base by ensuring higher stickiness. has also strengthened its alternate channels platform to expand
support this segment.
farm income is expected to drive long term growth in this segment. The business has implemented a bunch of steps to shift more the sourcing spectrum. A dedicated call center has been set up to
BUSINESS ANALYSIS customers towards alternate modes of collections through digital increase engagement with the alternate channel partners and their
Two-wheeler industry had a degrowth of 18% in FY 20 due to weak
consumer sentiment, subdued rural demand and increase in cost VEHICLE FINANCE payment links, collection through local Kirana stores, creating sourced leads.
of ownership. The industry is staring at another year of degrowth customer awareness for making online payments through RTGS,
The Vehicle Finance (VF) disbursements during the year were In order to improve the accessibility to customers, the business
due to the impact of COVID-19 which has impacted income of NEFT transfers, PayTM etc. This will help the company in the new
₹ 23,387 crores as against ₹ 24,983 crores in the previous year has expanded its branch network pan India, with focus on Tier II,
individuals leading to lesser discretionary spends. However, normal way of business where there might be restricted mobility in
with a marginal de-growth of 6% which was directly attributable III and IV cities. Majority of these branches are co-located/ shared
expectation of better Kharif prospects and normal rainfall shall help most places on account of the pandemic.
to the drop in Industry volumes especially commercial vehicles. with other business verticals, which will help in optimising for the
the demand from rural areas which is expected to be higher when The business has a branch network of 1,091 branches which
The VF division was able to grow in segments like car, MUV (Multi branch operating costs.
compared to urban areas. will support in growing market share across product segments
Utility Vehicle), tractor, two wheeler and used vehicles business
HOME EQUITY over last year. The PBT during the year was ₹ 945 crores as against through enhanced dealer coverage. These branches will also HOME LOANS
₹ 1,269 crores in the previous year. The drop in PBT is on account of help in acquiring new customers and creates a closer proximity As of March 31, 2020, the Home Loans (HL) business had 24,000 live
The COVID-19 pandemic and the resultant lockdown is likely with customers helping in collection efficiency improvement and
additional provisions made for bracing the COVID-19 impact and its accounts (68% growth Y-o-Y) with an AUM of ₹ 3,125 crores (63%
to impact MSME credit growth majorly during first half of FY 21. increasing repeat business. The business has a robust collection
aftermath. The VF division continued its focus on maintaining asset growth Y-o-Y). 90% of this portfolio is Tier II, III, IV cities and towns.
However, the initiatives taken by Government and RBI towards mechanism in place aided with a strong credit risk assessment
quality through an aggressive collection strategy, which helped The disbursements grew 30% Y-o-Y in FY 20 from ₹ 1,157 crores in
allowing for moratorium on payment of instalments, priority sector framework which will help in steering through the strong currents
in restricting gross stage 3 assets to 2.91% inspite of being a very FY 19 to ₹ 1,505 crores in FY 20.
lending, credit guarantee scheme and clearance of past payable of the COVID-19 pandemic in the fiscal of FY 21.
challenging year due to a stressed macro-economic environment
dues to MSMEs are expected to help the sector recover. Despite 99% of the portfolio comprises HL and is focused to be end-use
which had impacted customer cash flows coupled with the HOME EQUITY
these measures, the COVID related impact is expected to affect the
COVID-19 impact in the month of March, 2020. driven. The target group remains the Middle-Income Group (MIG)
business continuity of a significant share of MSMEs in the country. The business continues to focus on a systematic approach to build customer. The average ticket size is ₹ 15 lakhs with an average
The VF division has more than 80% of branches in the rural areas, a healthy portfolio mix, with more than 80% of the portfolio as
As far as the lending institutions to the MSMEs are concerned, assets LTV of 60% which reflects the quality of houses and marketability.
towns and semi urban areas which gives a clear advantage to
with lower ticket sizes and loans against Self-Occupied Residential SORP and an average loan ticket size of less than ₹ 50 lakhs. 95% of the portfolio comprises business owners with semi-formal
capitalise the rebound in rural demand post lockdown in terms of
Properties (SORP) are expected to have lesser stress on their portfolio. Portfolio LTV ratio at origination is consciously maintained around income and significant business vintage buying their first home.
tractor, two-wheeler business. Any uptick in the demand for small
Cashflow impact is likely to remain in the short term even after the 50% levels which provides adequate security cover to the business.
commercial vehicle, three-wheeler and light commercial vehicle 30% of customers are first time borrowers. The HL business has built
lockdown eases, due to supply chain disruptions and counterparty Amidst challenging macro-economic situation, AUM for Home
will help the business in garnering greater market share due to on Chola’s inherent strength in lending to the lower middle income
debtor risk across the value chain. Asset quality concerns are Equity business managed to grow by 11% to ₹ 12,960 crores
its presence in rural areas. The business car and MUV ticket sizes (LMI) segment with a customized eligibility program for business
expected to pose challenge over the next one year. Property prices in FY 20 compared to ₹ 11,626 crores in FY 19. Disbursements
are smaller and any first shoots of demand in the small passenger owners and salaried customers.
may face downward revision in the short term, however lenders with recorded year-on-year (Y-o-Y) growth of 10% for YTD Q3 FY 20.
vehicle segment will be to its advantage in terms of financing.
optimal Loan-to-Value (LTV) ratio in their portfolio are expected to However, with the onset of COVID-19 pandemic and lockdown Chola offers loans for self-construction, purchase of resale flats/
Chola is one of the largest player in the used vehicle financing
wear out this challenge sooner than others. during Q4 FY 20, the business faced 5% decline in disbursements independent houses, purchase of new flats/independent houses,
business with a disbursement mix of almost 30% in this segment
to reach ₹ 3,662 crores for full year FY 20 compared to balance transfer from other financiers, top-up loans for existing
HOME LOANS which will enable the business to cater to this segment effectively
₹ 3,837 crores in FY 19. customers. Self-construction remains a strong focus of the
The Indian Housing Finance market is estimated about ₹ 21 lakh and generate disbursement volumes where customer preferences
might shift to used vehicles for benefits of price and supply. Focus has been on digitizing the loan journey in order to improve company with significant proportion of the portfolio and fresh
crore and grew at around 10-14% in FY 20. ₹ 3 lakh crore of the disbursements sourced from this segment. The business has no
overall customer experience and to cut down loan processing
housing finance market comprises Low Cost Housing Finance. 70% The business has enhanced support for digital connectivity
turnaround time. In line with the objective, the business has construction finance exposure. The business does not have material
of the Low Cost Housing market is located in Tier II, III , IV cities. The and focus on productivity while working remotely, a host of
reimagined its entire loan processing journey, starting from under-construction exposure to developer supplied houses.
growth in the affordable housing finance segment continued to cybersecurity initiatives have been implemented to ensure
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Chola enjoys a significant presence in the Tier II, III, IV towns and The company also leveraged the demand for priority sector assets During the year, the company raised its maiden unlisted, unrated, HUMAN RESOURCES (HR)
cities. The business has a 5,000+ connector network that facilitates and increased its securitization and direct assignment deals 10-year, Tier II rupee denominated bonds (commonly known as
In order to enable Business, achieve the plan for the year, the key
passing on leads and a 500+ direct sales team (feet on street) considerably, which also contributed to having a completely masala bonds) in the offshore market with CDC Group PLC for a
focus areas for the HR function during the past year were:
members to source and offer doorstep delivery to the customer. matched inflow and outflow of funds apart from the significant total of ₹ 400 crores.
Given that these customers are mostly first-time buyers the direct lower interest rates. 1) Resourcing & Talent planning strategies
Including the above, the Tier II borrowings during the year
sales team guides and facilitates the customer through the entire The equity capital infusion, raising of ECB loans and 10 year masala constituted ₹ 450 crores and as at the end of FY 20, stood at 2) Retaining critical talent
purchase process. bonds, sale of assets by way of securitization / direct assignment, ₹ 4,263 crores. 3) Building capabilities across the organization
and large scale medium term bank borrowings contributed to a
PMAY – CLSS (*gross borrowings) 4)
Enhancing employee experience through collaborative
healthy ALM through the year and for the near future.
Chola is a recognized primary lending institution (PLI) of HUDCO MOVEMENT IN INTEREST COST digitized tools
RESOURCES & TREASURY
and has actively participated in facilitating customers to avail the The company’s funding strategy is to minimize interest cost as 5) Employee Health & Safety
CLSS subsidy. The business actively reaches out to customers and During the year, the company raised funds from multilateral
a percentage of average borrowings, without compromising
institutions/ banks and from money markets to support the Resourcing & Talent Planning:
explain the benefits of the scheme. The form is auto-generated on the ALM requirements. Despite incremental long-term bank
through the digital on-boarding system to avoid minimal chances growth of its businesses at competitive interest rates without FY 20 recorded a 13% growth in Overall headcount of Chola. 1,966
borrowings being used to substitute long term market borrowings,
of rejection. HUDCO’s recognition of the business’ outstanding compromising the right mix of long and short-term borrowings resources were hired in FY 20. 1,418 in management grade and 548
the borrowing costs were maintained at FY 19 levels. The cost of
contribution in this regard in May, 2018 has encouraged the and thereby maintaining a healthy asset liability position. The in supervisory grade. Employee referral, referral through market,
funds was higher in the initial months of FY 20, but progressive rate
business to strive for greater heights. borrowing profile as on 31 March, 2020, is given below: walk-ins were the top 3 pools of sourcing. Online psychometric
resets of bank borrowings helped it to be lowered significantly in
Q4. The benefit of this lower rate is expected to accrue in FY 21 to assessment to evaluate candidate capabilities were mainstreamed
DIGITAL JOURNEY Bank Term Loans
across hiring requirements in the year gone by.
2.7%
8.4%
a large extent.
2.6%
HL business is built on a solid foundation of a future-proof digital Non‐Convertible Debentures
The company has continued with its program for management
CAPITAL ADEQUACY RATIO (CAR)
stack. The customer journey from lead aggregation, on-boarding, 5.3% Commercial Papers trainees in FY 20. The trainees underwent a focused induction
2.9%
online KYC validation, bank statement analysis and credit scoring As at the end of FY 20, the capital adequacy ratio stood at 20.7%
Sub‐ordinated Debt program, followed by a year-long orientation plan. As a part of
models have been automated. The business continues to integrate (Tier I: 15.3% and Tier II: 5.4%).
10.4%
Working Capital Demand Loans (incl
the orientation plan, trainees underwent on-the-job training,
latest developments in the fintech space through Application 67.6% CC)
INVESTMENTS classroom training and mentoring sessions by leadership.
Program Interfaces (APIs) to make the system more robust, customer Perpetual Debt Instruments
The company’s investments of ₹ 72.92 crores include investments A structured Performance Improvement Plan (PIP) was
friendly and efficient. Given the environment post COVID-19, Securitisation
in subsidiaries of ₹ 72.90 crores and investments in equity shares of institutionalized in the year gone by. Plan was devised at employee
the business is working on delivering better direct to customer
₹ 0.02 crores (net of provisions). level to augment their productivity, coaching clinics focused to
experience and self-service platforms that would enable a smooth
BANK BORROWING address gaps are organized, additional products and channels
contact-less, safe experience for customers and employees. FINANCIAL REVIEW
were allocated and periodic performance evaluation and feedback
In FY 20, the company mobilised ₹ 15,600 crores of medium-term The company’s aggregate disbursements declined by 4% from
ASSET LIABILITY MANAGEMENT counselling is provided by the assigned mentor.
loans and ₹ 1,450 crores (net) as working capital / cash credit / short ₹ 30,451 crores in FY 19 to ₹ 29,091 crores in FY 20. The AUM for
FY 20 was a year punctuated with volatile money market conditions. term loan facilities from banks. The company continued getting Retaining critical talent under “Project - Udaan”:
the company grew by 16% (YoY) and the growth of on-balance
Inspite of the tight liquidity position, the company was successful support for its money market issuances from banks through sheet assets was 11%. The business AUM (including on book The program offers employees an opportunity to fast track their
in ensuring optimum Asset Liability Management (ALM) with subscription of commercial papers (CPs) and NCDs. During Q1, the and assigned net of provisions) in FY 20 grew by 12% stood at career. Any front-line field employee who has been in the system
reasonable cost of funds. The company had maintained a high level company successfully raised US$ 272 million by way of ECB loans, ₹ 60,549 crores as against ₹ 54,279 crores recorded in FY 19. for a year and has consistently performed above the average
of liquid assets ensuring that there are no negative mismatches at competitive rates on fully hedged basis. This was syndicated by
Asset quality as on March, 2020 stage 3 assets had stood at 3.8% productivity benchmark for a period of 6 months shall qualify
in any of the time buckets in its structural liquidity statement International Finance Corporation (IFC), which saw participation
with adequate provision coverage 41.5% ECL provision, as against under Udaan Program. The initiative is aimed at creating a strong
and ensured the company was insulated from the vagaries of the from various banks apart from IFC. The strength of the company’s
2.7% of last FY with provision coverage of 38%. Stage 3 provisions talent pipeline and help retain high performers.
money market. banking relationship ensured that the best available opportunities
for March, 2020 include additional provisions towards macro
to borrow from banks flowed steadily and this helped to maintain Building capabilities across the organization:
The company continued to place reliance on long term bank factors for ₹ 225 crores.
liquidity and manage borrowing costs, inspite of recurring negative
borrowings, reducing its exposure to market borrowings, as the Technology solutions paved the way for major shift in the delivery
news around NBFC / HFC sector during FY 20. Profit after tax (PAT) for the year ended March, 2020 were at
tight liquidity conditions prevailing in the money market was not ₹ 1,052 crores after creation of one time provision of ₹ 504 crores of the programs and reaching out to wider audience. Alt Learning
conducive for borrowings through non-convertible debentures MARKET BORROWING (net of tax - ₹ 335 crores) towards COVID-19 contingencies and was piloted and launched in November 2019. Leveraging the
(NCDs). The company was successful in getting higher volumes of During FY 20, the company raised ₹ 18,510 crores* and repaid the macro factors (one time provision). On a comparable basis, availability of digitized content for all product and process training,
bank term loans at competitive rates and maintained a healthy ALM ₹ 16,885 crores* of CPs. CP outstanding as at the end of the year was PAT for the year ended March, 2020 were at ₹ 1,387 crores before this platform gained traction quickly.
position throughout this period. ₹ 1,625 crores. Medium and long-term secured NCDs to the tune considering one time provision, as against PAT of ₹ 1,186 crores last With primary focus on providing learning solutions to business,
During the year, the company raised a large tranche of ECB loan at of ₹ 895 crores were mobilised at competitive rates. At the end of year, registering a growth of 17%. some of the new learning initiatives launched for the year gone
competitive rates, on a fully hedged basis. Also the company made FY 20, outstanding NCD stood at ₹ 5,359 crores. Comparable PBT-ROTA for FY 20 before adjusting one-time by included gamification-based learning, behavioral training
a maiden issue of 10 year masala bonds raising unsecured Tier II New investor profiles were added to ensure no undue concentration COVID and macro provisions was at 3.5% for the year as against programs, experiential training interventions, focused workshops
subordinated bonds in INR terms at competitive rates. in any single/group of investors. 3.7% in FY 19. and ISO and lead auditor programs.
69 70
Enhancing employee experience through collaborative channels are also integrated with the lead management and Company’s risk management division works as a value center by identify credit portfolio trends and early warning signals. This
digitized tools: customer service platform to ensure appropriate follow-up and constantly engaging with the business providing reports based enables it to implement necessary changes to the credit policy,
With the objective of creating an agile organization and to enhance resolution of the requests. The company has also extended its lead on key analysis and insights. The key risks faced by the company whenever the need arises. Also, being in asset financing business,
employee experience by providing collaborative tools, a new Human management solution as a layer of integration with its partners are credit risk, liquidity risk, interest rate risk, operational risk, most of the company’s lending is covered by adequate collaterals
Resource Management System (HRMS) suite Chola Connect was like vehicle manufacturers for seamless lead sharing, in-principle reputational and regulatory risk, which are broadly classified as from the borrowers. The company has a robust online application
launched in partnership with People Strong. A robust mechanism approval, and lead progress update. This initiative makes it a seamless credit risk, market risk and operational risk. The company has a underwriting model to assess the credit worthiness of the borrower
was put in place to run the modules, test and finalize the workflows. experience for customers on the back of a strong system to system well-established risk reporting and monitoring framework. The in- for underwriting decisions for its vehicle finance, home equity and
integration. As an on-going effort, the company continually reviews house developed risk monitoring tool, Chola composite risk index, home loan business. The company also has a well-developed model
There was a renewed focus in FY 20 on strengthening the employee the human activity across operations and deploys automation tools measures the movement of top critical risks. This provides the level for the vehicle finance portfolio, to help business teams plan volume
feedback mechanism through technological interventions. to increase the digitization index. This is reflected in the outcome and direction of the risks, which are arrived at based on the two with adequate pricing of risk for different segments of the portfolio.
Employee opinion polls were widely used to gauge the pulse of across a few critical initiatives including, digital integration with level risk thresholds for the identified key risk indicators and are
employees and modify the offering based on the feedback. Open external partners, automation of payout calculation & reconciliation MARKET RISK
aligned to the overall company’s risk appetite framework approved
house interaction with leadership team at zone level and with top and rule-based generation of compliance reports. by the board. The company’s risk management initiatives and risk Market risk is the possibility of loss arising from changes in the value
management team at HO level were conducted. An online platform
A key aspect of transitioning to a data-driven enterprise is the company’s MIS are reviewed monthly by the top management. This process of a financial instrument as a result of changes in market variables
to reward and recognise employees was launched.
Digital Data Center (DDC) initiative. The DDC has been built to be a enables the company to reassess the top critical risks in a changing such as interest rates, exchange rates and other asset prices. The
Employee Health & Safety scalable platform to handle vast volumes of data from conventional environment that need to be focused on. company’s exposure to market risk is a function of asset liability
Employee Health & Safety continues to be prime focus in Chola. transactional systems as well as non-conventional sources. The DDC Risk Governance structure: management and interest rate sensitivity assessment. The company
Some of the interventions that were rolled out during FY 20 include also provides stakeholders a clear view of key business metrics across is exposed to interest rate risk and liquidity risk, if the same is not
input and output parameters, operational measures of the business The company’s overall risk governance is handled by three lines managed properly. The company continuously monitors these
initiatives to reduce road accidents - recognized accident free
processes, and quicker ability to identify trends for corresponding of defense to ensure the effectiveness of an organization’s risk risks and manages them through appropriate risk limits. The Asset
regions, categorized regions based on the number of accidents
action based on alerts and forecasts. A larger goal of the initiative is management framework including monitoring and assurance
and initiated corrective steps in regions with high accident ratios, Liability Management Committee (ALCO) reviews market-related
to drive democratisation of data within the organization by enabling functions within the organization.
created a health & safety module as part of the standard employee trends and risks and adopts various strategies related to assets and
induction, launched an exclusive employee wellness program to teams with requisite access to build their own models, analysis, and a) Under the first line of defence, risk champions are identified liabilities, in line with the company’s risk management framework.
support health and wellbeing of employees, created safety head reports. The new HRMS system along with newly deployed audit and in each functional and business unit to take ownership, ALCO activities are in turn monitored and reviewed by a board sub-
hub within the HR organization. risk management solutions digitally enable audit and risk functions to responsibility and accountability for directly assessing, committee. In addition, the company has put in an ALM support
be integrated with the data repository in the DDC. This helps the DDC controlling and mitigating risks. group which meets frequently to review the liquidity position of
Awards Received: to provide a complete view of the enterprise across business products the company.
b) The risk management team under the guidance of the
• Awarded as winner in the Employee Relations & Employee and other support functions.
risk management committee acts as the second line of
Engagement category (Large Service Industry) at the CII OPERATIONAL RISK
The company continually reviews and augments its controls defense. The risk management division has established a
National HR Circle Competition. related to different aspects of technology risk – data, applications, comprehensive risk management framework across the Operational risk is the risk of loss resulting from inadequate or
• Chola won the second place for Digitization in L&D- HR at infrastructure, network, and people. Along with the Learning business and provides appropriate reports on risk exposures failed internal processes, people or systems, or from external
the CII National HR Circle Competition 2019. & Development team, the company also focus on augmenting and analysis in its pursuit of creating awareness across the events. The operational risks of the company are managed through
skills and capability of the technology team in a new world where company about risk management. The RMC of the board comprehensive internal control systems and procedures and
TECHNOLOGY INITIATIVES cyber-security, data & analytics, cloud & cloud-native solutions, meets minimum of four times a year and reviews the risk key back up processes. In order to further strengthen the control
The strategic focus for the digital technology team is to drive and enterprise technology strategy are key levers to drive management policy, implementation of risk management framework and effectiveness, the company has established risk
the transformation of Chola to an agile and data-driven financial transformation, in tandem with an agile culture. framework, monitoring of critical risks, and review of various control self-assessment at branches to identify process lapses
services organization. other initiatives with a structured annual plan. by way of exception reporting. This enables the management to
RISK MANAGEMENT
Continuing on the effort that started with the revamp of the evaluate key areas of operational risks and the process to adequately
c) Third line of defense constitutes internal auditors, internal
In its pursuit of creating value for stakeholders through sustainable mitigate them on an ongoing basis. The company also undertakes
technology platform for the HL business, the current period external auditors and statutory auditors provide assurance
business growth Chola has put in place a robust risk management risk based audits on a regular basis across all business units /
extended and completed the digital transformation for the HE to the audit committee and senior management on the
framework to promote a proactive approach in reporting, evaluating functions. While examining the effectiveness of control framework
business. The objective to minimize / eliminate manual touchpoints effectiveness of internal governance and risk processes.
and resolving risks associated with the business. Given the nature through self-assessment, the risk-based audit would assure effective
was a clear objective along with better user experience, improved
of the business the company is engaged in, the risk framework CREDIT RISK implementation of self-certification and internal financial controls
accuracy / quality of data being captured, and ultimately greater
recognizes that there is uncertainty in creating and sustaining such adherence, thereby, reducing enterprise exposure. The company
customer satisfaction. This has been developed in partnership with Credit risk arises when a borrower is unable to meet his financial
value as well as in identifying opportunities. Risk management is has put in place a robust Disaster Recovery (DR) plan, which is
technology partners and Application Programme Interface (API) obligations to the lender. This could be either because of wrong
therefore made an integral part of the company’s operations. periodically tested. Business Continuity Plan (BCP) is further put in
service providers who help with person – identity / KYC, contact assessment of the borrower’s payment capabilities or due
detail validation etc., financial – financial statement analysis and Risk Management Framework: Company’s risk management to uncertainties in his future earning potential. The effective place to ensure seamless continuity of operations including services
validation etc., and transactional – bank accounts, wallets etc. framework is based on management of credit risk requires the establishment of appropriate to customers, when confronted with adverse events such as natural
aspects of the customer journey digitization. (a) Clear understanding and identification of various risks credit risk policies and processes. The company has comprehensive disasters, technological failures, human errors, terrorism, etc. Periodic
The customers have options to interact with the company through and well-defined credit policies across various businesses, testing is carried out to address gaps in the framework, if any. DR and
(b) Disciplined risk assessment by evaluating the probability and
multiple technology-enabled channels irrespective of their stage of products and segments, which encompass credit approval process BCP audits are conducted on a periodical basis to provide assurance
impact of each risk
lifecycle with the organization. Bot-enabled platform enables them to for all businesses along with guidelines for mitigating the risks regarding the effectiveness of the company’s readiness. The company
share a lead, submit a quick loan application, raise a service request, (c) Measurement and monitoring of risks by establishing key risk associated with them. The appraisal process includes detailed risk is continuously engaged in creating risk awareness and culture
or even request for a loan moratorium. Along with augmentation indicators with thresholds for all critical risks and assessment of the borrowers, physical verifications and field visits. across the organisation through training on risk management tools
of the loan originations and loan management applications, these (d) Adequate review mechanism to monitor and control risks. The company has a robust post sanction monitoring process to and communication through risk e-newsletters.
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Report on
INTERNAL CONTROL SYSTEMS STATEMENT OF PROFIT & LOSS
` in crores
An internal control framework, including internal financial controls,
encompassing clear delegation of authority and standard operating Particulars March 2020 March 2019 Growth %
Corporate Governance
procedures, are available across all businesses and functions. Disbursements 29,091.17 30,450.95 (4%)
Clear segregation of duties exists between various functions. Key Income 8,652.89 6,992.64 24%
operational processes (finance and operations) are centralised at Cost of Funds (4,592.23) (3,588.74) (28%)
head office for better control. The company has instituted a strong Net Margin 4,060.66 3,403.90 19%
IT security system to ensure information security. All policies are Operating Expenses (1,577.60) (1,269.55) (24%)
reviewed and approved by the board on a periodic basis. Provisions and Losses (897.33) (311.20) (188%)
The company adopts a co-sourced model of internal audit. Profit Before Tax (PBT) 1,585.73 1,823.15 (13%)
M/s. Deloitte Haskins & Sells LLP - internal auditors provide an Current and Deferred Tax (533.36) (637.00) 16% Corporate governance is about commitment to values and ethical ã Have a transparent corporate structure driven by business
independent perspective on internal control systems. Further, the Profit After Tax (PAT) 1,052.37 1186.15 (11%) business conduct. It is also about how an organisation is managed needs; and
in-house internal audit department executes a rigorous audit
KEY PARTNERSHIPS AND TIE-UPS viz., its corporate and business structure, its culture, policies and
calendar spanning multiple business processes. The audit teams ã Ensure compliance with applicable laws.
the manner in which it deals with various stakeholders. Timely and
conduct an independent review of the design and operating Particulars Institution
effectiveness of internal financial controls established by accurate disclosure of information regarding the financial position BOARD OF DIRECTORS
Life Insurance business HDFC Standard Life Insurance Company
the management and recommends improvements. Critical of the company, its performance and ownership forms part of the The corporate governance practices of the company ensure that
Limited
audit observations are shared with the audit committee on a General Insurance Cholamandalam MS General Insurance corporate governance. the board of directors (the board) remains informed, independent
quarterly basis to effectively monitor controls and implement business Company Limited
CORPORATE GOVERNANCE PHILOSOPHY and involved in the company and that there are ongoing efforts
recommendations. Manufacturer Tie ups Tata Motors Limited
Mahindra & Mahindra Limited towards better governance to mitigate “non-business” risks.
On compliance, a methodical system of monthly self-assessment The company is committed to the highest standards of corporate
Ashok Leyland Limited The board is fully aware of its fiduciary responsibilities and recognises
exists in all functions. A robust mechanism is in place to control, governance in all its activities and processes.
SML Isuzu Limited
detect and prevent fraud. The investigations are reviewed by a its responsibilities to shareholders and other stakeholders to uphold
Force Motors Limited The company has always believed in and practices the highest
disciplinary committee comprising senior management members the highest standards in all matters concerning the company
Daimler India Commercial Vehicles
and chaired by the managing director. standards of corporate governance. The board recognises that
Eicher Polaris and has empowered responsible persons to implement its broad
The internal financial control systems are constantly monitored John Deere India governance expectations are constantly evolving and is committed
policies and guidelines and has set up adequate review processes.
both by an in-house team as well as the external internal auditors. Mahindra Gujarat Tractors Limited to keep standards of transparency and dissemination of information
The risk and control matrices are reviewed by the internal audit Sany India under continuous review to meet both letter and spirit of the law The board is committed to representing the long-term interests of
Hyundai Construction Equipment India
team on a quarterly basis, control measures are tested and results and its own demanding levels of business ethics. the stakeholders and in providing effective governance over the
Escorts Construction Equipment
are communicated to the audit committee. These measures have company’s affairs and exercise reasonable business judgment on
Action Construction Equipment The company believes that sound corporate governance practices
helped in ensuring the adequacy and operating effectiveness of Terex India the affairs of the company.
internal financial controls. are crucial to the smooth and efficient operation of a company and
The statutory auditors of the company have also certified on the KEY RATIOS its ability to attract investment, protect the rights of its stakeholders The company’s day to day affairs are managed by the managing
existence and operating effectiveness of the internal financial Particulars March March and provide shareholder value. Everything the company does is director (MD) assisted by the executive director (ED) and a
controls relating to financial reporting as of March, 2020. 2020 2019 defined and conditioned by the high standards of governance, competent management team, under the overall supervision of the
Return on Equity - PAT 15.2% 20.9% which serve its values. The company firmly believes in and follows board. The company has in place an appropriate risk management
RESULT OF OPERATIONS
Return on Total Assets - PAT 1.8% 2.4% the below principle: system covering various risks that the company is exposed to,
The company’s balance sheet size has steadily grown, compared Total Assets under Management (₹ in crores) 66,943 57,861
to the previous year. A summarised version of the same Earnings Per Share - Basic in ₹ 13.37 15.17 “The fundamental principle of economic activity is that no man you including fraud risks, which are discussed and reviewed by the
is given below: Market Price - as of 31 March (in ₹) 152.95 289.60 transact with will lose; then you shall not.” audit committee and the board every quarter.
` in crores Market Capitalisation - as of 31 March 12,535 22,769
The corporate governance philosophy of the company is driven by The company’s commitment to ethical and lawful business conduct
Particulars March 2020 March 2019 Growth % (₹ in crores)
CAR 20.7 17.4 the following fundamental principles: is a fundamental shared value of the board, the senior management
Assets
Operating Expenses to Assets 2.6 2.6 and all employees of the company. Consistent with its values and
Business Assets 55,403 52,622 5% ã Adhere to corporate governance standards beyond the letter
Profit Before Tax to Income 18.9 26.4 beliefs, the company has formulated a Code of Conduct applicable
Cash & Bank Balances 6,959 3,675 89% of law;
Other Assets 1,631 1,129 44% to the board and senior management. Further, the company has
CONSOLIDATED RESULTS ã Maintain transparency and high degree of disclosure levels;
TOTAL 63,993 57,426 11% also adopted a Code of Conduct to regulate, monitor and report
The consolidated profit after tax for the year under review was
Liabilities ã Maintain a clear distinction between the personal interest trading by insiders in the securities of the company and a whistle
₹ 1,053.72 crores in FY 20, as against ₹ 1,196.59 crores in FY 19.
Net worth 8,172 6,176 32% and the corporate interest; blower policy for reporting any concerns or grievances by directors,
Borrowings 50,374 45,074 12%
On behalf of the board
Securitisation 4,631 5,493 (16%)
Other Liabilities 816 683 19% Place : Chennai M.M. Murugappan
TOTAL 63,993 57,426 11% Date : June 3, 2020 Chairman
73 74
employees / customers and vendors in their dealings with the Formal induction and familiarisation programme Name of the director Executive / Non-executive / No. of directorship No. of shares No. of board
company. In order to ensure that the whistle blower mechanism for directors Independent / Promoter including CIFCL* held in the committee membership
is effective and as prescribed, direct access to the chairman of the (Out of which as company including CIFCL**
The company’s independent directors are eminent professionals chairman) (Out of which as
audit committee is provided to the complainant. chairman)
with several decades of experience in banking and financial services
Composition industry, technology, finance, governance and management Mr. M. M. Murugappan Non-executive / Promoter director 14(6) 21,035 6(4)
/ Chairman
The board has been constituted in a manner as per reg.17 of the areas and are fully conversant and familiar with the business
Mr. N. Ramesh Rajan Non-executive / Independent director 4(1) Nil 4(3)
SEBI (Listing Obligations and Disclosure Requirements) Regulations, of the company. The company has an ongoing familiarisation Mr. Ashok Kumar Barat Non-executive / Independent director 9 Nil 7(4)
2015 (Listing Regulations) and the Companies Act, 2013 (the Act). programme for all directors with regard to their roles, duties, Ms. Bhama Krishnamurthy Non-executive / Independent director 7 Nil 6
The board has a mix of executive / non-executive and independent rights, responsibilities in the company, nature of the industry in Mr. Rohan Verma Non-executive / Independent director 3(1) Nil 1
directors, including a woman independent director to ensure which the company operates, the business model of the company, Mr. Arun Alagappan Executive / Promoter director 9 9,50,000 2
proper governance and management. The board members have Mr. Ravindra Kumar Kundu Executive director 3 80,235 Nil
etc. The programme is embedded in the regular meeting agenda
collective experience in diverse fields like banking and financial * for the purpose of directorship / committee membership, all publlic / private companies and section 8 companies have been considered.
where alongside the review of operations, information on the ** only chairmanship / membership of audit committee and stakeholders’ relationship committee have been considered.
services, audit, finance, compliance and technology. The directors
industry, competition and company strategy are presented on The names of the other listed entities where the directors are holding directorship as at 31 March, 2020 are given below:
are elected based on their qualification and experience in varied
a quarterly basis. The details of the familiarisation programme Name of the director Name of the listed entity Category of directorship
fields. None of the directors are inter-se related.
attended by directors are available on the website of the Mr. M.M. Murugappan Tube Investments of India Limited Non-Executive Chairman
Core Skills / expertise / competencies
company (web link: https://www.cholamandalam.com/files/media/ Cholamandalam Financial Holdings Limited
In terms of Listing Regulations, the following are the list of core skills Chola_Familiarisation-Programme.pdf). Cholamandalam MS General Insurance Company
/ expertise / competencies identified by the board in the context of Limited (Debt listed company)
At the time of induction of a director on the board of the company, Carborundum Universal Limited
the company’s business and sector for effective functioning:
a formal invitation to join the board of the company is sent out Coromandel International Limited
Core Skills / expertise / competencies Status along with a brief introduction about the company. A copy of the Mahindra and Mahindra Limited Non-Executive / Independent Director
Finance Competency Cyient Limited Non-Executive Director
company’s latest annual report and the schedule of the upcoming
Strategy, planning and marketing available Mr. N. Ramesh Rajan Indo - National Limited Non-Executive / Independent Director / Chairman
board / committee meetings for the calendar year are forwarded TTK Healthcare Limited Non-Executive / Independent Director
Technology
Governance to the director. The director is explained in detail the compliances Mr. Ashok Kumar Barat Cholamandalam Financial Holdings Limited Non-Executive / Independent Director
Management and leadership required of him / her under the Act, the Listing Regulations and Bata India Limited
other relevant regulations and his / her affirmation is taken with Birlasoft Limited
DCB Bank Limited
The names of directors who have the above skills / expertise / respect to the same. By way of an introduction the company
Ms. Bhama Krishnamurthy Reliance Industrial Infrastructure Limited Non-Executive / Independent Director
competencies are as follows: conducts a familiarisation program covering all the businesses, CSB Bank Ltd., (Formerly The Catholic Syrian Bank Ltd.)
functions and regulations impacting the company to new directors. Network 18 Media & Investments Limited
Name of the director Skills/expertise/competencies
Additionally, the company’s code of conduct which inter alia Thirumalai Chemicals Limited
Mr. M.M. Murugappan Strategy, planning, governance,
Mr. Rohan Verma - -
technology, management and explains the values and beliefs of the company, functions, duties
Mr. Arun Alagappan Lakshmi Machine Works Limited Non-Executive / Independent Director
leadership and responsibilities as a director of the company, including the
Mr. Ravindra Kumar Kundu - -
Mr. N. Ramesh Rajan Finance, governance, management and
duties of independent directors in terms of the Act is given to the
leadership In the opinion of the board, the independent directors of the to ensure that it exercises full control over significant strategic,
Mr. Ashok Kumar Barat Finance, technology, strategy, planning director at the time of joining and on an annual basis. Further, there
company fulfill the conditions specified in Listing Regulations and financial, operational and compliance matters. The board is
and marketing, governance, is a detailed quarterly discussion and presentation on review of are independent of the management of the company. regularly briefed and updated on the key activities of the business
management and leadership operations of the company and the regulatory updates impacting
All the board members, including independent directors, have and is provided with briefings and presentations on operations,
Ms. Bhama Krishnamurthy Finance, governance, management and
the business which helps the director familiarise himself / herself opportunity and access to interact with the management. quarterly financial statements and other matters concerning
leadership
with the company, its business and the regulatory framework in the company. Besides, information about statutory compliance,
Mr. Rohan Verma Technology, strategy, planning and Separate meeting of independent directors
minutes of all the subsidiary companies and committees of the
marketing, management and leadership which the company operates.
During the year under review, in line with the requirement under board and information as required under the Listing Regulations
Mr. Arun Alagappan Finance, technology, management and
The details of directors as at 31 March, 2020, including the details section 149(8) and schedule IV of the Act, the independent are also provided to the directors on a quarterly basis. The board at
leadership, strategy, planning and
directors had a separate meeting without the presence of the every meeting also reviews the important regulatory changes and
marketing of their other board directorship and committee membership
non-independent directors and management team. correspondence between two meetings.
Mr. Ravindra Kumar Kundu Management and leadership, strategy, reckoned in line with regulation 26 of the Listing Regulations and
planning and marketing Board Meetings The dates of the board meetings are fixed in advance for the
the Act as well as their shareholdings, are given below:
The board meets at regular intervals with an annual calendar and calendar year to enable maximum attendance from directors.
a formal schedule of matters specifically reserved for its attention During the year, the board met 7 times on 27 April, 2019,
75 76
30 July, 2019, 5 November, 2019, 12 December, 2019, a financial year. The committee also verifies the adequacy in the Composition & Meetings Criteria for Board Nomination
23 January, 2020, 26 February, 2020 and 17 March, 2020. The Act, systems for internal controls, to grant approvals for related party As at 31 March, 2020, the committee comprised Mr. N. Ramesh Rajan, The nomination and remuneration committee is responsible
read with the relevant rules made there under, facilitates the transactions which are in the ordinary course of business and
independent director as the chairman, Mr. M.M. Murugappan and for identifying persons for initial nomination as directors and
participation of a director in board / committee meetings through on an arm’s length basis, scrutiny of inter-corporate loans and
Mr. Ashok Kumar Barat as its members. The majority of the members evaluating incumbent directors for their continued service. The
video conferencing or other audio visual means. Accordingly, the investments, besides recommending the appointment / removal
of this committee are independent directors. The committee had committee has formulated a charter in terms of the provisions
company also provides the option to participate through video of the statutory auditors, the internal auditors and fixing their
four meetings during the year ended 31 March, 2020. of the Act, regulation 19(4) of the Listing Regulations and RBI
conferencing to enable the directors’ participation at the meetings. remuneration and review of the effectiveness of audit process. Regulations applicable for non-banking finance companies, which
The board periodically reviews the matters required to be placed Composition & Meetings
REMUNERATION OF DIRECTORS inter alia, deals with the personal traits, competencies, experience,
before it and inter alia reviews and approves the quarterly financial Remuneration Policy background and other fit and proper criteria. These attributes
statements, corporate strategies, business plan, annual budgets As at 31 March, 2020 the committee comprised three non-
The success of any organisation in achieving good performance shall be considered for nominating candidates for board positions
and capital expenditures. It monitors the overall performance and executive directors. All members of this committee are independent
and governance depends on its ability to attract quality individuals / re-appointment of directors.
reviews other matters which require the board’s attention. directors. The committee comprised Mr. N. Ramesh Rajan,
independent director as the chairman, Mr. Ashok Kumar Barat on the board. Criteria for appointment in senior management
The board also takes on record the declarations and confirmations
and Ms. Bhama Krishnamurthy as its members and The company has in place a remuneration policy which is guided by The nomination and remuneration committee is responsible for
made by the managing director, chief financial officer and company
Mr. M.M. Murugappan, chairman of the board, Mr. Rohan Verma, the principles and objectives as enumerated in section 178 of the Act. identifying and recommending persons who are qualified to be
secretary, regarding compliances of all laws on a quarterly basis.
director and Mr. Arun Alagappan, managing director as permanent appointed in senior management including recommending their
Certificate from Company Secretary in Practice invitees. The company secretary acts as the secretary to the committee. Currently, Mr. Arun Alagappan and Mr. Ravindra Kumar Kundu are
remuneration. The committee has formulated the charter in terms
Mr. R. Sridharan of M/s. R. Sridharan & Associates has issued a During the year, the committee met five times. All members of audit the executive directors (EDs) on the board. The compensation to
of the provisions of the Act and the Listing Regulations, which inter
certificate as required under the Listing Regulations, confirming committee have knowledge of financial management, audit and Mr. Arun Alagappan is within the scale approved by the
alia, deals with the criteria for identifying persons who are qualified
that none of the directors on the board of the company has been accounts. The statutory auditors, the internal auditors and senior shareholders. The compensation to Mr. Ravindra Kumar Kundu is
to be appointed in senior management. These attributes shall be
debarred or disqualified from being appointed or continuing as management are invited to attend the meetings of the committee. within the scale approved by the board and the same shall be placed
considered for nominating candidates for senior management
director of companies by SEBI / Ministry of Corporate Affairs or The company has in place a system for an independent meeting of for shareholders’ approval at the forthcoming general meeting.
position.
any such statutory authority. A certificate to this effect has been the committee with the statutory and internal auditors without the The elements of compensation comprise a fixed component and
enclosed with this report. a performance incentive. The compensation is determined based Performance Evaluation
presence of the non-independent directors and management team.
The committee met the statutory auditors as well as internal auditors on the level of responsibility and scales prevailing in the industry. In terms of the provisions of the Act and the Listing Regulations,
COMMITTEES OF THE BOARD
during the year. EDs are not paid sitting fees for any board / committee meetings the board carries out an annual performance evaluation of its
The board has constituted various committees to support the attended by them. own performance, the directors individually including the MD and
board in discharging its responsibilities. NOMINATION AND REMUNERATION COMMITTEE
The compensation to the non-executive directors takes the form ED carry out a self as well as a peer evaluation and the individual
There are seven committees constituted by the board - audit Terms of Reference committees carries out an evaluation of the working of the
of commission on profits. Though the shareholders have approved
committee, stakeholders’ relationship committee, corporate committees. The performance evaluation of the independent
The role of the committee is to determine the company’s policy payment of commission up to one per cent of the net profits
social responsibility committee, nomination and remuneration directors is carried out by the entire board. The performance of the
on remuneration to executive directors and senior management, of the company for each year calculated as per the provisions of
committee, risk management committee, IT strategy committee chairman and the non-independent directors are carried out by the
including periodic increments in salary. The committee is also section 198 of the Act, the actual commission paid to the directors
and business committee.
empowered to determine the annual commission / incentives of is restricted to a fixed sum within the above limit annually on the independent directors. Chairman anchors the sessions on self, peer,
The board at the time of constitution of each committee fixes the basis of their tenor in office during the financial year. The sum is committee and board effectiveness evaluations. Chairman of the
the executive directors and the minimum remuneration of the
terms of reference, reviews it and delegates powers from time to nomination and remuneration committee anchors the session on
executive directors in the event of inadequacy of profits besides reviewed periodically taking into consideration various factors
time. Various recommendations of the committees are submitted chairman evaluation.
implementing, remuneration including commission payable such as performance of the company, time devoted by the directors
to the board for approval. The minutes of the meetings of all the
to non-executive directors, administering and monitoring the in attending to the affairs and business of the company and the Policy on Board diversity
committees are circulated to the board for its information.
employee stock option plan / schemes of the company. The terms extent of responsibilities cast on the directors under various laws
The nomination and remuneration committee has devised a policy
AUDIT COMMITTEE of reference inter alia includes the role of the committee to further and other relevant factors.
on board diversity which sets out the approach to diversity on the
Terms of Reference consider and recommend persons who are qualified for board The non-executive directors are also paid sitting fees subject to the board of the company. The policy provides for having a truly diverse
positions, evaluate directors performance prior to recommendation
The committee acts as a link between the board, the statutory statutory ceiling for all board and committee meetings attended board, comprising of appropriately qualified people with a broad
for re-appointments, identify persons who are qualified to be
auditors and the internal auditors. The role of the audit committee by them. range of experience relevant to the business of the company.
in senior management and recommend their appointments,
includes overseeing the financial reporting process and disclosure
remuneration payable and removal, formulate the criteria for Remuneration of managing director/executive director:
of financial information, review of financial statements, adequacy
of internal financial controls and risk management systems, review determining qualifications, positive attributes and independence
Details of the remuneration of the managing director and executive director for the year ended 31 March, 2020 are as follows:
and approval of transactions with related parties, findings of of a director and devising a policy on board diversity, determine
` in lakhs
internal audits / investigations, whistle blower policy, monitoring whether to extend or continue the terms of appointment of
Name of the Director Salary Allowance Incentive (provisional) Perquisites & Contributions Total
the usage of funds from issue proceeds, review the financial independent director on the basis of the report of performance
Mr. Arun Alagappan 102.73 141.70 106.11 42.79 393.33
statements, in particular, the investments made by the unlisted evaluation. Decisions for selecting a director is based on the merit,
Mr. Ravindra Kumar Kundu 15.36 7.05 9.98 4.75 37.14
subsidiary companies, review of usage of loans, advances received, qualification, competency and the company’s business needs. Such
(effective 23 January 2020)
investment in the subsidiaries exceeding ₹ 100 crore or 10% of the candidates shall be free of conflict of interest that would interfere
Note:
asset size of the subsidiary, review compliance with the provisions with their ability to discharge their duties. The recommendations of Mr. Arun Alagappan and Mr. Ravindra Kumar Kundu are not eligible for any severance fee. Service contract and the notice period are as per the terms of agreement
of SEBI Prohibition of the Insider Trading Regulations at least once the committee are placed before the board for its approval. entered into by them with the company.
77 78
Remuneration of non-executive directors to determine the IT resources needed to achieve strategic goals and Composition & Meetings
provide high-level direction for sourcing and use of IT resources. As at 31 March, 2020, the business committee comprised
After the last revision five years back, the non-executive directors commission has been revised in FY 20 from ₹ 7,50,000 to ₹ 10,00,000 per
Ensuring proper balance of IT investments for sustaining company’s Mr. M.M. Murugappan as the chairman, Mr. Ashok Kumar Barat and
financial year and ₹ 12,00,000 to the chairman of audit committee reflecting their enhanced roles and responsibilities.
growth and becoming aware about exposure towards IT risks and Mr. Arun Alagappan as its members. The senior management is
The board further revised the sitting fee payable to non-executive directors. Directors of the company are paid a sitting fee of ₹ 50,000/- controls. The committee also reviews the information security invited to attend the meetings of the committee. The committee
for every meeting of board and audit committee and ₹ 30,000/- for every meeting of stakeholders’ relationship committee, nomination and cyber security framework, business continuity planning and held three meetings during the year.
and remuneration committee, risk management committee, corporate social responsibility committee, IT strategy committee and business disaster recovery process of the company.
committee. The details of commission provided / sitting fees paid to non-executive directors for the year ended 31 March, 2020 are as follows: CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
` in lakhs Composition & Meetings
Terms of Reference
Name of the director Commission Sitting Fees paid Total As at 31 March, 2020, the committee comprised
Mr. Ashok Kumar Barat as the chairman, Mr. Rohan Verma and The role of the committee includes formulation and
Mr. M. M. Murugappan 10.00 5.00 15.00 recommendation of a corporate social responsibility (CSR) policy
Mr. Arun Alagappan as its members. The committee held two
Mr. N. Ramesh Rajan 12.00 6.40 18.40 for the company, recommend the amount of expenditure to
meetings during the year ended 31 March, 2020.
Mr. Ashok Kumar Barat 10.00 7.80 17.80 be incurred on the CSR activities, monitor the CSR policy of the
Ms. Bhama Krishnamurthy 6.69 4.80 11.49 BUSINESS COMMITTEE company from time to time and institute a transparent monitoring
Mr. Rohan Verma 10.00 3.10 13.10 Terms of Reference mechanism for implementing the CSR activities and carry out any
Ms. Bharati Rao@ 3.31 0.95 4.26 other function or activity as may be required to ensure that the CSR
The role of the committee includes review of the business of the
TOTAL 52.00 28.05 80.05 objectives are met.
company, including approval and review of business proposals
@ Retired at the close of 41 annual general meeting held on 30 July, 2019
st
beyond certain financial limits, review and recommend new Composition & Meetings
Note: product note to the board for approval, approve borrowings As at 31 March, 2020, the committee comprised
Commission is provided based on the tenure the directors have served on the board and will be paid subject to deduction of tax as applicable. within the limits prescribed by the board, approve assignment of Mr. M.M. Murugappan as the chairman, Ms. Bhama Krishnamurthy
STAKEHOLDERS’ RELATIONSHIP COMMITTEE the actions planned in and periodical review of the process for receivables and oversee the asset liability management system of and Mr. Arun Alagappan as its members. The committee held two
systematic identification, cyber security and assessment of the the company. meetings during the year ended 31 March, 2020.
Terms of Reference
business risks. Besides, the committee periodically monitors the
The role of the committee includes formulation of shareholders’ critical risk exposures by specialised analysis and quality reviews
ATTENDANCE AT BOARD, COMMITTEE AND GENERAL MEETINGS
servicing plans and policies, consideration of valid share transfer and reports to the board the details of any significant developments, Name of the directors Board Audit Stakeholders Nomination & Business Risk Corporate IT strategy Attendance
requests with folios beyond 5000 shares, share transmissions, identify and make recommendations to the board, to the extent (Attendance committee relationship remuneration committee management social committee at last AGM
issue of duplicate share certificates, issue of share certificates for necessary on resources and staffing required for effective risk %) committee committee committee responsibility
split, rematerialisation, consolidation of shares, etc. The committee management and the action taken to manage the exposures and committee
also monitors and reviews the mechanism of share transfers, carry out any other function as may be necessary to ensure that an
dematerialisation of shares and payment of dividends, adherence Mr. M.M. Murugappan#
7(100%)
NA 1 2 3 1 2 NA Yes
effective risk management system is in place.
to the service standards in respect of various services being Mr. N. Ramesh Rajan 7(100%) 5 NA 4 NA 4 NA NA Yes
rendered by the Registrar & Share Transfer Agent, measures taken Composition & Meetings Mr. Ashok Kumar Barat 7(100%) 5 1 4 3 4 NA 2 Yes
for effective exercise of voting rights by shareholders, approve As at 31 March, 2020, the committee comprised Ms. Bhama Krishnamurthy* 5(100%) 3 NA NA NA 3 1 NA NA
transfer of shares to the Investors Education and Protection Fund. Mr. Ashok Kumar Barat as the chairman, Mr. N. Ramesh Rajan,
Mr. Rohan Verma 6(86%) NA 1 NA NA NA NA 2 Yes
It further looks into the redressing of shareholders’ grievances like Ms. Bhama Krishnamurthy and Mr. Arun Alagappan as its members
non-receipt of balance sheet, non-receipt of declared dividends Mr. Arun Alagappan 7(100%) NA 2 NA 3 4 2 1 Yes
and executive director, business and functional heads of the
and determining, monitoring and reviewing the standards for company as invitees. The committee held four meetings during the Mr. Ravindra Kumar Kundu$
3(100%) NA NA NA NA NA NA NA NA
resolution of shareholders’ grievances. year ended 31 March, 2020. Ms. Bharati Rao@ 1(50%) 1 1 1 NA NA 1 NA No
During the year, the company had received two complaints from Meetings with chief risk officer * - Appointed as an additional director effective 31 July, 2019.
the shareholder / debenture holder which have been resolved.
During the year under review, in line with the requirement under $ - Appointed as the executive director effective 23 January, 2020.
There were no investor complaints pending as at 31 March, 2020.
RBI regulations, the committee had separate meetings with @ - Retired at the close of 41st annual general meeting held on 30 July, 2019
Composition & Meetings Mr. Shankar Subramanian, chief risk officer of the company without # - Was a member of Risk Management Committee till 31 July, 2019 and appointed as member of Nomination and Remuneration Committee
As at 31 March, 2020, the committee comprised the presence of the managing director and the management team. on 31 July, 2019
Mr. M.M. Murugappan as the chairman and Mr. Rohan Verma
IT STRATEGY COMMITTEE GENERAL BODY MEETINGS
and Mr. Arun Alagappan as its members. Ms. P. Sujatha, company
secretary is the compliance officer. During the year, the committee Terms of Reference Particulars of venue, date and time of the previous three annual general meetings are given below:
held two meetings. The role of committee includes approving Information Technology Year Date and Time Venue
RISK MANAGEMENT COMMITTEE (IT) strategy and policy documents and ensuring that the
management has put an effective strategic planning process in 2017 27 July, 2017 at 4.00 p.m. The Music Academy, New No.168 (Old No.306), T.T.K Road,
Terms of Reference place and ascertaining implementation processes and practices Royapettah, Chennai - 600 014
The role of the committee includes review of the risk management that ensure that IT delivers value to the business. Ensuring IT 2018 26 July, 2018 at 4.00 p.m. -do-
policy developed by the management, review of the annual investments represent a balance of risks and benefits, the budgets 2019 30 July, 2019 at 3.30 p.m. -do-
risk management framework document and implementation of are acceptable and monitoring the method that management uses
79 80
DETAILS OF SPECIAL RESOLUTIONS PASSED COMPLIANCE REPORT CEO/CFO CERTIFICATION

Particulars of special resolutions passed in the previous three annual general meetings are given below: A detailed compliance report is placed before the board every Managing director and chief financial officer have given a
quarter and highlights of the report is circulated to the board along compliance certificate to the board with regard to financial
Date of AGM Details with the agenda every quarter. The company secretary submits a statements and internal control systems as contemplated under
27 July, 2017 Issue of securities on private placement basis under section 42 of the Act compliance certificate to the board on a quarterly basis. The board regulation 17(8) of the Listing Regulations.
26 July, 2018 - Approval for borrowing powers of the company reviews the compliance of all applicable laws every quarter and
- Issue of securities on private placement basis under section 42 of the Act gives appropriate directions, wherever necessary. SUBSIDIARY COMPANIES
30 July, 2019 - Approval for borrowing powers of the company A policy on material subsidiaries has been formulated and the
SECRETARIAL AUDIT
- Issue of securities on private placement basis under section 42 of the Act same is posted on the company’s website (weblink: https:// www.
- Approval for payment of commission to non-executive directors The company annually conducts a secretarial audit by an
cholamandalam.com/company-policies.aspx). The financial
independent practicing company secretary. For the year ended
31 March, 2020, M/s. R. Sridharan & Associates, company secretaries, statements of subsidiary companies are tabled at the audit
POSTAL BALLOT have conducted the secretarial audit and the certificate was placed committee and board meetings every quarter. The company does
before the board and attached to this report. not have any material subsidiary whose net worth exceeds 10% of
During the year, the company passed special resolutions for the following items through postal ballots:
the consolidated income or net worth of the company during the
• Alteration of the object clause in the Memorandum of Association (MOA) of the company. RECONCILIATION OF SHARE CAPITAL AUDIT immediately preceding financial year.
• Issue of equity shares by way of qualified institutions placement to eligible qualified institutional buyers. As required by the Securities and Exchange Board of India (SEBI),
DISCLOSURES
quarterly audit of the company’s share capital is being carried
• Issue of equity shares by way of preferential allotment to Cholamandalam Financial Holdings Limited. out by an independent auditor with a view to reconcile the total Related party transactions
The postal ballots were conducted in accordance with the procedure laid down under section 110 of the Act read with rule 22 of the share capital admitted with National Securities Depository Limited All transactions with related parties that were entered into during
Companies (Management and Administration) Rules, 2014. Mr. R. Sridharan of M/s. R. Sridharan & Associates, company secretaries acted as (NSDL) and Central Depository Services (India) Limited (CDSL) the financial year were in the ordinary course of business and
and held in physical form, with the issued and listed capital. The were on an arm’s length basis. There were no material transactions
the scrutiniser for postal ballots. All the resolutions were passed with requisite majority by the shareholders.
certificate issued by an independent practicing company secretary with related parties i.e., transactions of the company of material
The details of voting pattern of the postal ballots are as follows: is submitted to the stock exchanges and is also placed before the nature, with its promoters, the directors or the management, their
1. Special resolution pertaining to alteration of the object clause in the MOA of the company: board of directors. subsidiaries or relatives, etc., that may have potential conflict with
CODE OF CONDUCT the interest of company at large.
Particulars No. of ballots / e-voting No. of shares (votes) % on total shares (votes) received Suitable disclosures as required in compliance with accounting
The board has laid down a “Code of Conduct” for all the board
Assent 555 13,52,75,597 99.99969 members and the senior management of the company and the Code standards with related parties are disclosed in note 37 of the
Dissent 8 421 0.00031 of Conduct has been posted on the website of the company. Annual financial statements in the annual report.
Total 563 13,52,76,018 100.0000 declaration confirming compliance of the code is obtained from The board has put in place a policy on related party transactions
every person covered by the code of conduct. A declaration to this and the same has been uploaded on the company’s website
2. Special resolution pertaining to issue of equity shares by way of qualified institutions placement to eligible qualified institutional effect signed by Mr. Arun Alagappan, MD is attached to this report. (weblink: https://www.cholamandalam.com/company-policies.aspx).
buyers:
CODE FOR PREVENTION OF INSIDER TRADING Fee disclosures as required by clause 10(k), Part C, Schedule V
Particulars No. of ballots / e-voting No. of shares (votes) % on total shares (votes) received
The board has adopted a code to regulate, monitor and report of the Listing Regulations:
Assent 490 68,45,36,002 99.8005 trading by insiders in securities of the company. The code inter alia Total fees for all services paid by the company and its subsidiaries,
Dissent 15 13,68,677 0.1995 requires pre-clearance for dealing in the securities of the company on a consolidated basis, to M/s. S.R. Batliboi & Associates (Batliboi),
Total 505 68,59,04,679 100.0000
and prohibits the purchase or sale of securities of the company statutory auditors of the company and other firms in the network
while in possession of unpublished price sensitive information in entity of which the statutory auditor is a part, as included in the
relation to the company and during the period when the trading consolidated financial statements of the company for the year
3. Special resolution pertaining to issue of equity shares by way of preferential allotment to Cholamandalam Financial Holdings Limited:
window is closed. The board has further approved the code for ended 31 March, 2020, is as follows:
practices and procedures for fair disclosure of unpublished price
Particulars No. of ballots / e-voting No. of shares (votes) % on total shares (votes) received ` in lakhs
sensitive information and policy governing the procedure of inquiry
Particulars Amount
Assent 606 68,19,91,406 99.9920 in case of actual or suspected leak of unpublished price sensitive Fees for
Fees foraudit
auditandand related services
related paid paid
services to to 342.26
Dissent 19 54,360 0.0080 information. The code has also been hosted on the website of the Batliboi and
Batliboi and affiliates
affiliates firms
firms and
and to
to entities
entitiesof the
Total 625 68,20,45,766 100.0000
company. of the network of which the statutory
network of which the statutory auditorauditor
is a part
is a part
Proposed resolutions through postal ballot: COMPLIANCE CERTIFICATE ON CORPORATE
Other fees
feespaid
paidtoto Batliboi & affiliates
Batliboi firms
& affiliates firms 18.49
No special resolution is proposed to be conducted through postal ballot. GOVERNANCE
and totoentities
entitiesofofthe network
the network of which
of whichthe the
The certificate on compliance of corporate governance norms from statutory auditor is a part
a practicing company secretary is annexed to the report. Total fees* 360.75
*Includes input tax credit expensed wherever applicable
81 82
Disclosure under Sexual Harassment of Women at Workplace

(Prevention, Prohibition and Redressal) Act, 2013:
The company has also adopted the following discretionary
requirements specified in Part E of Schedule II in terms of regulation Certificate from Company Secretary in Practice
27(1) of the Listing Regulations:
During the year, the company had not received any complaint [Pursuant to Regulation 34 (3) read with Schedule V Para-C Sub clause (10) (i) of Securities and Exchange
under the Sexual Harassment of Women at Workplace (Prevention, i.
Modified opinion(s) in audit report: Company’s financial
statements have unmodified audit opinions. Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015]
Prohibition and Redressal) Act, 2013.
ii.
Reporting of internal auditor: The internal auditors of the
Whistle blower policy / vigil mechanism The Members,
company directly report to the audit committee.
The company has established a whistle blower mechanism to CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
MEANS OF COMMUNICATION Dare House, No. 2, N S C Bose Road,
provide an avenue to raise concerns. The mechanism provides for
adequate safeguards against victimisation of directors / employees The audited financial results, quarterly results and other major Parrys, Chennai - 600001
/ customers who avail of the mechanism and also for appointment announcements like notices of board meetings, book closures were
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of CHOLAMANDALAM
of an ombudsperson who will deal with the complaints received. published in Business Line and Dinamani and are also available on
INVESTMENT AND FINANCE COMPANY LIMITED (CIN: L65993TN1978PLC007576) having its Registered Office at Dare House No. 2,
The policy also lays down the process to be followed for dealing the company’s website www.cholamandalam.com. Press releases
N S C Bose Road, Parrys, Chennai – 600001 (hereinafter referred to as “The Company”) as produced before us by the Company for the
are given in the leading newspapers and also posted on the
with complaints and in exceptional cases, also provides for direct purpose of issuing this certificate, in accordance with Regulation 34 (3) read with Schedule V Part-C Sub clause 10 (i) of the Securities and
company’s website. The investors’ presentations and call transcripts
access to the chairperson of the audit committee. During the year, Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
are also posted on the company’s website. The company has posted
no personnel have been denied access to the audit committee.
a shareholder’s satisfaction survey on its website to ascertain the In our opinion and according to the verifications (including Director Identification Number (DIN) Status at the portal www.mca.gov.in)
The policy is available on the website (weblink: https://www. and based on such examination as well as information and explanations furnished to us, which to the best of our knowledge and belief
level of the shareholders satisfaction. Further, the shareholding
cholamandalam.com/company-policies.aspx).
pattern and presentations made to analysts and investors from were necessary for the purpose of issue of this certificate and based on such verification as considered necessary, we hereby certify that
Penalties time to time are also displayed on the website of the company. none of the Directors as stated below on the Board of the Company as on 31st March 2020 have been debarred or disqualified from being
appointed or continuing as Directors of Companies by the Securities and Exchange Board India / Ministry of Corporate Affairs or any such
There were no penalties, strictures imposed on the company by MANAGEMENT DISCUSSION & ANALYSIS other statutory authority.
stock exchange(s) or SEBI or any statutory authority, on any matter A management discussion & analysis forms part of the annual
related to capital markets, during the last three years. report.
S.NO DIN NAME OF THE DIRECTOR DESIGNATION DATE OF APPOINTMENT
COMPLIANCE WITH CORPORATE GOVERNANCE NORMS GENERAL SHAREHOLDER INFORMATION
The company has complied with all mandatory requirements A separate section on the above has been included in the annual 1. 00170478 M. M. Murugappan Non-Executive – Chairman 31/05/2018
report. 2. 00291361 Arun Alagappan Executive Director 19/08/2017
of corporate governance norms as enumerated in chapter IV of
(upto 14/11/2019)
the Listing Regulations. The requirements of regulation 17 to On behalf of the board
Managing Director 15/11/2019
regulation 27 of the Listing Regulations and clauses (b) to (i) of the
3. 00492930 Ashok Kumar Barat Non-Executive - 31/10/2017
sub-regulation (2) of regulation 46 to the extent applicable to the Place : Chennai M.M. Murugappan
company have been complied with as disclosed in this report. Date : June 3, 2020 Chairman
4. 01628318 N. Ramesh Rajan Non-Executive - 30/10/2018
5. 01797489 Rohan Verma Non-Executive - 25/03/2019
Declaration on Code of Conduct 6.

02196839 Bhama Krishnamurthy Non-Executive -
31/07/2019
7. 07337155 Ravindra Kumar Kundu Executive Director 23/01/2020

This is to confirm that the board has laid down a Code of Conduct for all board members and senior management of the company. The
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management of the
Code of Conduct has also been posted on the website of the company. It is further confirmed that all directors and senior management
Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to
personnel of the company have affirmed compliance with the Code of Conduct of the company for the year ended March 31, 2020, as
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
envisaged in schedule V under regulation 34 (3) of the Listing Regulations. Company.
Place : Chennai Arun Alagappan For R. Sridharan & Associates

Date : June 3, 2020 Managing Director
Company Secretaries

CS. R. Sridharan
CP No. 3239
FCS No. 4775
Place : Chennai
UIN : S2003TN063400
Date
: June 3, 2020 UDIN: F004775B000308067
83 84
Independent certificate on compliance with the conditions

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

Parrys, Chennai - 600001 30 July, 2020 3.30 p.m. The annual general meeting (AGM) will be held through video conference in compliance
with general circular numbers 14, 17 and 20/2020 and all other applicable laws and
circulars issued by the Ministry of Corporate Affairs (MCA) and Securities and Exchange
We have examined documents, books, papers, minutes, forms and returns filed and other relevant records maintained by Board of India (SEBI).
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED, (CIN: L65993TN1978PLC007576) having its Registered Office
FINANCIAL YEAR
at Dare House, No.2, N.S.C Bose Road, Parrys, Chennai- 600001, for the purpose of certifying compliance of the conditions of Corporate
1 April to 31 March.
Governance under Regulation 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V to the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 34(3) of the SEBI (Listing Obligations and Disclosure DIVIDEND PAYMENT DATE
Requirements) Regulations, 2015 for the financial year ended March 31, 2020. We have obtained all the information and explanations, The board at its meeting held on 12 December, 2019 had approved payment of 1st interim dividend on the equity shares for the year
which to the best of our knowledge and belief were necessary for the purpose of certification. ending 31 March, 2020 at the rate of 50% (` 1 per equity share of ` 2 each) and fixed the record date as 24 December, 2019. The dividend
was paid to all the shareholders by 1 January, 2020.
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Further, the board at its meeting held on 26 February, 2020 had approved payment of 2nd interim dividend on the equity shares for the year
ending 31 March, 2020 at the rate of 35% (` 0.70 per equity share of ` 2 each) and fixed a record date as 5 March, 2020. The dividend was
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
paid to all the shareholders by 13 March, 2020.
In our opinion and on the basis of our examination of the records produced, explanations and information furnished, we certify that
The company has accordingly paid a total of 85% (` 1.70 per equity share of ` each) as interim dividends. The board of directors have
the Company has complied regarding the conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and recommended the same to be declared as final dividend for FY 20.
Disclosure Requirements) Regulations, 2015 as amended for the financial year ended 31 March, 2020.
st
LISTING ON STOCK EXCHANGES

This Certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the
Equity Shares:
management has conducted the affairs of the Company.
BSE Limited National Stock Exchange of India Limited
Floor 25, Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No.C-1, G Block, Bandra Kurla Complex,
Dalal Street, Fort, Mumbai - 400 001. Bandra (E), Mumbai - 400 051
For R. Sridharan & Associates Stock Code: 511243 Stock Code: CHOLAFIN EQ
Company Secretaries
Sub-division and ISIN:

CS. R. Sridharan Consequent to the shareholders approval through postal ballot on 3 June, 2019 for sub-division of equity shares of the company, the face
CP No. 3239 value of equity shares ` 10/- each fully paid-up was sub-divided into equity shares of face value of ` 2/- each fully paid-up and the ISIN for
FCS No. 4775 the equity shares of the company has been changed to INE121A01024.
Place : Chennai
UIN : S2003TN063400
Date
: June 3, 2020 UDIN: F004775B000308210 Debt Securities:
Debt securities are listed in the Wholesale Debt Market (WDM) Segment of NSE and F - Class Segment of BSE Limited.
Payment of Listing fees
The listing fees for both equity shares and debt securities for FY 20 were paid to the above stock exchanges.
85 86
SHARE PRICE DATA in ` TRUSTEES FOR THE DEBENTURE HOLDERS

Month BSE NSE The company has appointed IDBI Trusteeship Services Limited and Catalyst Trusteeship Limited as debenture trustees registered with SEBI,
High Low Vol. High Low Vol. as the trustees on behalf of the debenture holders.
April, 2019 1,510.70 1,389.50 290,115 1,509.95 1,388.80 57,47,434 The contact details of the Trustees are as follows:
May, 2019 1,533.55 1,246.60 420,969 1,532.70 1,247.80 80,91,768 1. IDBI Trusteeship Services Limited 2. Catalyst Trusteeship Limited
June, 2019 Asian Building, Ground Floor, GDA House, Plot No. 85, Bhusari Colony (Right),
- Before sub-division 1,532.00 1,462.48 140,669 1,532.40 1,466.50 22,22,008 17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001 Paud Road, Pune - 411 038
Phone : 022-40807035 Phone : 020-2528 0081
- After sub-division 291.55 275.13 1,332,611 291.35 274.70 84,25,447
Cholamandalam share price performance in comparison Website : www.idbitrustee.co.in Website : www.catalysttrustee.com
July, 2019 291.85 238.10 2,040,476 291.70 with NSE NIFTY238.55 2,87,75,481 E-mail : [email protected] E-mail : [email protected]
1600
August, 2019 273.65 249.55 2,292,148 273.20 249.15 2,78,67,759 Contact person : Ms. Anjalee Athalye, Asst. VP (Operations) Contact person : Ms. Madhura Gokhale - Sr. Manager
12000
September, 2019 310.50 263.50 2,675,886 310.60 263.40 3,05,07,987 Dematerialisation of shares and liquidity
1500
October, 2019 307.05 270.70 1,638,406 307.10 270.60 2,66,27,296
11500 The company’s shares are tradable in the electronic form only. The company has established connectivity with National Securities
November, 2019 329.70 296.45 5,542,838 329.85 296.65 4,03,34,771 Depository Limited and Central Depository Services (India) Limited. As of 31 March, 2020, 99.85% of the company’s shares were held in
Chola (in Rs)
NSE NIFTY
December, 2019 316.35 299.65 522,656
11000 316.50 300.45
1400
2,60,64,595 dematerialised form. The company’s shares are regularly traded on National Stock Exchange of India Limited and BSE Limited under the
ISIN: INE121A01024.
January, 2020 332.30 291.55 2,727,803 331.65 291.50 5,14,54,770
February, 2020 342.80 306.40 807,300
10500 342.65 306.50 1300
3,41,37,158 Share Transfer System
March, 2020 305.85 136.50 5,731,614 306.20 136.05 8,32,87,010 Effective 1 April, 2019 SEBI has disallowed listed companies from accepting request for transfer of securities which are held in physical
10000 1200 form. The shareholders who continue to hold shares in physical form after this date, will not be able to lodge the shares with company / its
Note: The drop in the market price from July 2019 onwards is due to sub-division of face value of the equity shares from ` 10/- each to
Apr/19
May/19
Jun/19
RTA for further transfer. Shareholders shall mandatorily convert them to demat form if they wish to effect any transfer. Only the requests
` 2/- each where the market price was adjusted for the sub-division. for transmission and transposition of securities in physical form, will be accepted by the company / RTA. There are still 2,425 shareholders
NIFTY Cholamandalam Share Price
holding 0.15% of the company’s shares in physical form. Those shareholders whose shares are held in physical mode may consider moving
Before sub-division of shares After sub-division of shares to dematerialised mode as they will not be able to transfer them in physical mode and also it is a safer and easier way to hold.
Cholamandalam share price performance in comparison Cholamandalam share price performance in comparison Nomination facility
with NSE NIFTY with NSE NIFTY
1600 380
The company is accepting nomination forms from shareholders in the prescribed form. All those who are desirous of making a nomination
12300
12000 are requested to contact the RTA. The shareholders holding shares in dematerialised form are requested to forward their nomination
340
11500
instructions to the concerned depository participants. Nomination is optional and can be cancelled or varied by a shareholder at any time.
1500
11500
300
Payment of dividend through NACH
10700
The company uses National Automated Clearing House (NACH) facility for payment of dividends directly to the bank accounts of
Chola (in Rs)
Chola (in Rs)
260
NSE NIFTY
NSE NIFTY
1400
11000
9900
220
shareholders. The shareholders may use the facility by providing their bank account number to the depository participant / RTA, as may be
relevant, to enable the company to effect the dividend payment through the NACH mode.
9100
180
10500
1300 Green initiative in corporate governance
8300 140
The Companies Act, 2013 and the underlying rules permit companies to send various documents including the financial statements
10000 1200 7500 100 through electronic mode to the shareholders. In compliance with the circulars issued by MCA and SEBI, only electronic copies of the notice
Aug/19
Dec/19
Mar/20
Sep/19
Oct/19
Nov/19
Feb/20
Jun/19
Jan/20
Jul/19
Apr/19
May/19
Jun/19
of the AGM and annual report for FY2020 will be sent to all the shareholders whose email addresses are registered with the company /
NIFTY Cholamandalam Share Price NIFTY Cholamandalam Share Price
depository participants. Shareholders are requested to register their e-mail ID with the depository participant, if the holding is in electronic
mode. If shares are held in physical mode, the shareholders are requested to furnish their email addresses to RTA for receiving the above
documents by electronic mode.
REGISTRAR AND SHARE TRANSFER AGENT
Cholamandalam share price performance in comparison Details of complaints received and redressed
with NSE NIFTY
KFin Technologies Private Limited (KFin) is the Registrar and Share
380
Transfer Agent (RTA) for handling the physical and electronic registry During the year, two investor service complaints relating to non‐receipt of demat credit and non‐receipt interest payment were received.
12300
work (formerly Karvy Fintech Private Limited). The shareholders are requested to send their share related requests / queries to the RTA. No investor service complaint was pending as at 31 March, 2020.
340
11500
The contact details of the RTA are as follows: 300
KFIN10700
Technologies Private Limited
Chola (in Rs)
260
NSE NIFTY
(Unit: 9900
Cholamandalam Investment and Finance Company Limited)
Selenium Tower B, Plot 31-32, Gachibowli, Financial District 220
Nanakramguda,
9100 Hyderabad - 500 032, Telengana | Phone: 040-67161736
180
| Fax: 040-23420814
E-mail: [email protected] | Website: www.karisma.kfintech.com
8300 140
Contact person: Mr. Rajkumar Kale - Senior Manager - Corporate Registry
7500 100
Aug/19
Dec/19
Mar/20
Sep/19
Oct/19
Nov/19
Feb/20
Jun/19
Jan/20
Jul/19
87 88
NIFTY Cholamandalam Share Price
Contact details of the designated official for assisting and handling investor grievances Year wise details of the dividends to be transferred to IEPF are given below:
In terms of regulation 46(2)(k) of the Listing Regulations, the contact details of the designated official for assisting and handling investor FY to which the dividend relates Date of declaration Due date for transfer to IEPF
grievances are as below:
2013 - Final 31 July, 2013 04 September, 2020
Ms. P. Sujatha, Company Secretary 2014 - Interim 29 January, 2014 05 March, 2021
“Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai‐600 001 - Final 31 July, 2014 04 September, 2021
Phone: 044-40907172 (bd.) 40907055 (d) | Fax: 044-25346464 2015 - Interim 27 January, 2015 03 March, 2022
E‐mail: [email protected] | [email protected] - Final 31 July, 2015 04 September, 2022
2016 - Interim 29 January, 2016 05 March, 2023
- Final 29 July, 2016 03 September, 2023
CREDIT RATING
The credit rating details of the company as at 31 March, 2020 are as follows:
- Final 27 July, 2017 31 August, 2024
Rating Agency Term Type Rating as on 31 March, 2020 Revisions during the year Obtained during the year - Final 26 July, 2018 30 August, 2025
ICRA LT NCD / SD [ICRA]AA+ with 2019 - Interim 30 January, 2019 06 March, 2026
/ CC / TL Stable Outlook - Final 30 July, 2019 03 September, 2026
2020 - Interim I 12 December, 2019 16 January, 2027
LT PD [ICRA]AA with
- Interim - II 26 February, 2020 02 April, 2027
Stable Outlook
Transfer of Equity Shares to IEPF
ST CP / [ICRA]A1+ CP : [ICRA]A1+ on
In accordance with the provisions of section 124 and 125 of the Act, read with Investor Education and Protection Fund Authority (Accounting,
WCDL September 3, 2019
Audit, Transfer and Refund) Rules, 2016 (IEPF), the underlying shares of all dividends which remain unpaid/unclaimed for a period of seven
CRISIL ST CP [CRISIL]A1+ CP : [CRISIL]A1+ on consecutive years be transferred to Investor Education and Protection Fund (IEPF). As required under the said rules, the company had
September 5, 2019 published a notice in the newspapers inviting the shareholders attention to the aforesaid rules. The company had also sent out individual
LT SD [CRISIL]AA+ / Stable communication to the concerned shareholders whose shares are liable to be transferred to IEPF Account, pursuant to the said rules and
also displayed the details of such shareholders and shares due for transfer on the website of the company at www.cholamandalam.com
CARE LT SD CARE AA+
in line with the requirements. During the year, the company had transferred 75,251 shares pertaining to 125 shareholders to the demat
LT PD CARE AA account maintained by IEPF authority. Shareholders may note that both the unclaimed dividend and corresponding shares transferred to
INDIA Ratings LT NCD / SD IND AA+ with Stable Outlook IEPF including all benefits accruing on such shares, if any, can be claimed from IEPF authority, as per the procedure prescribed in the rules.
and Research LT PD IND AA with Stable Outlook No claim shall lie in respect thereof with the company.
Private Ltd Unclaimed Suspense Account
Note: LT – Long term loan, ST – Short term loan, NCD – Non-convertible debenture, SD – Subordinated debt instrument, CC – Cash credit, In terms of regulation 34(3) of the Listing Regulations, all the shares issued in physical form pursuant to a public issue or any other issue,
TL – Term loan, CP – Commercial paper, WCDL – Working capital demand loans, PD – Perpetual debt instrument which remain unclaimed had been transferred to a folio in the name of unclaimed suspense account and dematerialised. The voting rights
of these shares shall remain frozen till the rightful owner of such shares claims the shares. During the year, the company transferred 1 share
Payment of unclaimed / unpaid dividend to the IEPF authority for which the dividend remained unpaid/unclaimed during the seven consecutive years in the unclaimed suspense
account.
In respect of unclaimed dividends, the company sends periodical reminders to the shareholders before transferring the unclaimed
dividends to the investor education and protection fund (IEPF) established by the central government. The dividends that are lying The details regarding the shares which are in the unclaimed suspense account are given below:
unclaimed / unpaid for a period of seven consecutive years are transferred from time to time to IEPF. The company has remitted
` 5.72 lakhs to IEPF during the year. S. No. Description Total No. of cases Total Shares
1 No. of shareholders and outstanding shares lying in the unclaimed suspense account 3 191
at the beginning of the year
2 No. of shareholders who approached for transfer of shares from unclaimed suspense - -
account during the year
3 No. of shareholders to whom shares were transferred from the unclaimed suspense - -
account during the year
4 No. of shares transferred to IEPF authority 1 1
5 No. of shareholders and outstanding shares lying in the unclaimed suspense 2 950*
account at the end of the year
* The increase in the number of shares is due to sub-division of face value of the equity shares from ` 10/- each to ` 2/- each
89 90
Business Responsibility Report

Distribution of Shareholding as on 31 March, 2020
Sl. No. Category (Shares) No. of Holders % to Holders No. of Shares % to Equity
1 1 - 500 47,635 69.41 68,47,898 0.84

2 501 - 1000 10,694 15.58 76,02,731 0.93 SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
3 1001 - 3000 6,998 10.20 1,17,07,731 1.43
1. Corporate Identity Number (CIN) of the company: L65993TN1978PLC007576
4 3001 - 10000 2,208 3.22 1,14,93,136 1.40
2. Name of the company: Cholamandalam Investment and Finance Company Limited
5 10001 - 20000 482 0.70 67,23,127 0.82
3. Registered office address: “Dare House”, No.2, N.S.C. Bose Road, Parrys, Chennai - 600001
6 20001 - 100000 388 0.57 1,63,25,560 1.99
4. Website: www.cholamandalam.com
7 100001 and above 220 0.32 75,88,77,576 92.59
5. E-mail id: [email protected]
TOTAL 68,625 100.00 81,95,77,759 100.00
6. Financial Year reported: 01.04.2019 - 31.03.2020
SHAREHOLDING PATTERN 7. Sector(s) that the company is engaged in (industrial activity code-wise):
Category (Shares) As at 31 March, 2020 NIC Code Group Description

No. of Shares % of K 649 Financial Services - Lending
shareholding
Promoter and promoter group 42,32,91,094 51.65 8. List three key services that the company provides (as in balance sheet):
Foreign Portfolio Investors 10,00,35,743 12.21 Key services rendered by the company are
Mutual Funds / Trust / Banks / Financial Institutions/AIFs 19,82,29,009 24.19 1. Vehicle Finance
Private Corporate Bodies / NBFCs 1,25,74,549 1.53 2. Home Equity, Home Loans
Resident Individuals and others 8,54,47,364 10.43 3. Corporate Finance
TOTAL 81,95,77,759 100.00 9. Total number of locations where business activity is undertaken by the company:
(a) Number of international locations (Provide details of major 5): Nil
OUTSTANDING GDRs/ADRs ETC. (b) Number of national locations: 1,091 branches
The company has not issued any GDR / ADR or any convertible instruments that is likely to impact the equity share capital of the company. 10. Markets served by the company - local / state / national / international: National
COMMODITY PRICE RISK / FOREIGN EXCHANGE RISK AND COMMODITY HEDGING ACTIVITIES SECTION B: FINANCIAL DETAILS OF THE COMPANY
The company is in financial services business and has no exposure to commodity price risk and commodity hedging activities and hence 1. Paid Up capital: ` 163.98 crores
the disclosure pertaining to SEBI circular dated 15 November, 2018 is not applicable. In respect of certain computer related purchases 2. Total turnover: ` 8,652.63 crores
involving payment in foreign currency wherein the payment is made basis the rate prevailing on the date of payment and as per the terms 3. Total profit after taxes: ` 1,585.73 crores
mentioned in contract. To this extent, if the currency movement is adverse, the payment would be impacted by such currency exposure. 4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): Refer CSR report
5. List of activities in which expenditure in 4 above has been incurred: Refer CSR report
LOCATION
The company's registered office is in Chennai and it operates out of 1,091 branches across the country. SECTION C: OTHER DETAILS
1. Does the company have any subsidiary company/companies?
On behalf of the board Yes, the company has two subsidiaries as on 31.03.2020 namely:
Place : Chennai M.M. Murugappan 1. Cholamandalam Securities Limited and
Date : 3 June, 2020 Chairman 2. Cholamandalam Home Finance Limited
2. Do the subsidiary company/companies participate in the Business Responsibility (BR) initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(s):
BR initiatives of the parent company are generally followed by the subsidiary companies to the extent possible.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the company does business with, participate in the BR initiatives of
the company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]:
Not applicable.
SECTION D: BR INFORMATION
1. Details of director/directors responsible for BR:
(a) Details of the director/director responsible for implementation of the BR policy/policies:
1. Director Identification Number (DIN): 00291361
2. Name: Mr. Arun Alagappan
3. Designation: Managing Director
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(b) Details of the BR head: 2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by
the management? If so, provide details thereof, in about 50 words or so.
SN. Particulars Details
1 DIN (if applicable) 00291361 Particulars Received Resolved Pending
2 Name Mr. Arun Alagappan Customer complaints 1,338 1,341* 8
3 Designation Managing Director Shareholder / Debenture holder 2 2 0
4 Telephone number 044 - 4090 7172
*11 pending complaints pertaining to FY19 were resolved during the year.
5 E-mail id [email protected]
Principle 2 - To provide services that are safe and contribute to sustainability throughout their life cycle
2. Principle-wise (as per NVGs) BR Policy/policies 1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
(a) Details of compliance (Reply in Y/N) Not applicable - The company being a NBFC is not engaged in a business concerning design of products/services that could

SN. Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P9 raise social concerns, economic risks and/or hazardous opportunities.
1 Do you have a policy/policies for all the principles Y Y Y Y Y Y Y Y Y 2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product
2 Has the policy being formulated in consultation Y Y Y Y Y Y Y Y Y (optional):
with the relevant stakeholders?
Not applicable.
3 Does the policy conform to any national/international Y* Y* Y* Y* Y* Y* Y* Y* Y*
standards? 3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your
4 Has the policy being approved by the board? If yes, Y Y Y Y Y Y Y Y Y inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.
has it been signed by MD/owner/CEO/ appropriate Not applicable.
board director?
4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding
5 Does the company have a specified committee Y Y Y Y Y Y Y Y Y
their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
of the board/director/official to oversee the
implementation of the policy? Yes, the company procures goods and services from local and small producers, including communities surrounding their

6 Indicate the link for the policy to be viewed online? ttps://www.cholamandalam.com/company-policies.aspx
h place of work wherever possible.
7 Has the policy been formally communicated to all Y Y Y Y Y Y Y Y Y 5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste
relevant internal and external stakeholders? (separately as 10%). Also, provide details thereof, in about 50 words or so.
8 Does the company have in-house structure to Y Y Y Y Y Y Y Y Y
Not applicable.
implement the policy/policies.
9 Does the company have a grievance redressal Y Y Y Y Y Y Y Y Y Principle 3 - To promote the well being of all employees
mechanism related to the policy/policies to address
1. Please indicate the total number of employees - 7,873
stakeholders’ grievances related to the policy/policies?
10 Has the company carried out independent audit/ Y Y Y Y Y Y Y Y Y 2. Please indicate the total number of employees hired on temporary/contractual/casual basis - 0
evaluation of the working of this policy by an internal 3. Please indicate the number of permanent women employees - 223
or external agency?#
4. Please indicate the number of permanent employees with disabilities - 0
* National standards
#
The Company has in place an internal task force which evaluates the working of this policy. 5. Do you have an employee association that is recognized by management - No
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: Not applicable. 6. What percentage of your permanent employees is members of this recognized employee association? - Not applicable.
7. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last
3. Governance related to BR
financial year and pending, as on the end of the financial year.
(a) Indicate the frequency with which the board of directors, committee of the board or CEO to assess the BR performance of the
company. Within 3 months, 3-6 months, Annually, More than 1 year. SN. Category No. of complaints filed No. of complaints pending as
during the financial year on end of the financial year
The BR performance is assessed annually.
1 Child labour/forced labour/involuntary labour - -
(b) Does the company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is 2 Sexual harassment - -
published? 3 Discriminatory employment - -
Yes, https://www.cholamandalam.com/company-policies.aspx. Report is published annually.
8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?
SECTION E: PRINCIPLE-WISE PERFORMANCE The Learning & Development team created a health & safety module as part of the standard employee induction. More than 52% of
Principle 1 - To conduct and govern themselves with ethics, transparency and accountability the employees were part of this program.
1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/No. Does it extend to the group/joint ventures/ Employee Wellness program – Over 190 programs conducted during the year covering Cardiac wellness, eye check camps, dental
suppliers/contractors/NGOs/others? camps, General Health Camps, Workplace Ergonomics programs, yoga camps were conducted at the branches in addition to the
regular pre-employment checks and annual health checkups for employees.
The policy extends to the company, its subsidiaries and its business associates.
93 94
With an endeavor to reduce number of accidents, increased safety messages & touch points with employees were initiated. The Principle 7 - Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
initiatives included conversations on road safety, continued weekly mailers, SMS, publishing employee accident stories, messages
1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:
from family, desktop screensavers with Safety awareness messages, Health & Safety drives as an integral part of all Townhalls &
Training sessions. • Confederation of Indian Industry
• Finance Industry Development Council
Principle 4 - Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
• Finance Companies’ Association (India)
disadvantaged, vulnerable and marginalized.
• South India Hire Purchase Association
1. Has the company mapped its internal and external stakeholders? Yes/No.
2. 2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes
Yes. specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy
2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders. security, Water, Food Security, Sustainable Business Principles, Others
Not applicable. Yes. Representations had been submitted to the Government and regulatory authorities on various matters for the

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. improvement of public good on areas relating to governance and administration, economic reforms, inclusive development
If so, provide details thereof, in about 50 words or so. policies and sustainable business principles.
Not applicable. Principle 8 - Businesses should support inclusive growth and equitable development
Principle 5 - Businesses should respect and promote human rights 1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.
1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/ Yes, please refer CSR Report.
Contractors/NGOs/Others?
2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other
The policy on human rights covers the company, customers and its associates. organization?
2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the
Please refer CSR Report.
management?
3. Have you done any impact assessment of your initiative?
The company received 1,338 customer complaints and 1 shareholder and 1 debenture holder complaint during the financial
year. 99.40% customer complaints and 100% shareholder/debenture holder complaints were resolved satisfactorily by the We have done impact assessment study in FY 20 for the Health, Environment, Rural Development, Arts & Culture and WASH
management as on 31 March, 2020. projects.
Principle 6 - Business should respect, protect, and make efforts to restore the environment 4. What is your company’s direct contribution to community development projects - Amount in INR and the details of the projects
1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/ NGOs/ undertaken?
others. Please refer CSR Report.
The policy is applicable only to the company. 5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain
2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? in 50 words, or so.
Y/N. If yes, please give hyperlink for web page etc. Yes, in these projects the community is motivated to contribute. The cost will be mobilized by way of membership fee from
Not applicable. the beneficiary families. The villagers also provide installation space for the machine. They have formed committees with the
3. Does the company identify and assess potential environmental risks? Y/N. guidance of Implementing partners and the Panchayat. These committees not only take care of the project but also create a
surplus by monthly fee collection, which they use to sustain the project.
Not applicable.
4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Principle 9 - Businesses should engage with and provide value to their customers and consumers in a responsible manner
Also, if Yes, whether any environmental compliance report is filed? 1. What percentage of customer complaints/consumer cases are pending as on the end of the financial year.
No. 0.45% of customer complaints were pending at the end of the financial year.
5. Has the company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please 2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/
give hyperlink for web page etc.:
N.A./Remarks(additional information)
No.
Not Applicable.
6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being
3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/ or
reported?
anti-competitive behaviour during the last five years and pending as at the end of the financial year. If so, provide details thereof, in
Not applicable. about 50 words or so.
7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of FY. No.
Nil.
4. Did your company carry out any consumer survey/consumer satisfaction trends?
Yes, customer satisfaction surveys are carried out periodically and trends measured.
95 96
Independent Auditor’s Report Independent Auditor’s Report (Contd.)

Key audit matters How our audit addressed the key audit matter
To the Members of Cholamandalam Investment and Finance Company Limited the Company based on the guiding principles prescribed under •
Understood the Company’s Expected Credit Loss (‘ECL’)
Ind AS 109. As explained in the notes to the financial statements for methodology, the underlying assumptions and performed
Report on the Audit of the Standalone Ind AS Financial Statements the year ended March 31, 2020, the impairment provision is based sample tests to assess the staging of outstanding exposures;
Opinion on the expected credit loss model requires the management of • Assessed the Exposure at Default used in the impairment
the Company to make significant judgments in connection with calculations on a test basis;
We have audited the accompanying Standalone Ind AS financial statements of Cholamandalam Investment and Finance Company Limited
related computation. These include:
(“the Company”), which comprise the Balance sheet as at March 31 2020, the Statement of Profit and Loss, including the statement of • Obtained an understanding of the basis and methodology
Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the (a) Segmentation of the loan portfolio into homogenous pool of adopted by management to determine 12 month and life-time
Standalone Ind AS financial statements, including a summary of significant accounting policies and other explanatory information. borrowers; probability of defaults for various homogenous segments and
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial (b) Identification of exposures where there is a significant increase performed test checks;
statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a in credit risk and those that are credit impaired; • Obtained an understanding of the basis and methodology
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at (c) Determination of the 12 month and life-time probability of adopted by management to determine Loss Given Defaults
March 31, 2020, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date default for each of the segments identified; and for various homogenous segments based on past recovery
(d) Loss given default for various exposures based on past trends experience, qualitative factors etc., and performed test checks;
Basis for Opinion
/ experience, management estimates etc., • Assessed the items of loans, credit related contingent items as
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified
Additionally, the economic and business consequences of at the reporting date which are considered in the impairment
under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for
the COVID 19 pandemic as described in Note 2.2 & 2.3 to the computation as at the reporting date;
the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the Company in accordance with
the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to Standalone Ind AS financial statements, slowdown of economic •
Assessed the data used in the impairment computation
our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical activity, moratoriums granted to borrowers, the related regulatory (including the data integrity of information extracted from the
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is directives and also the applicable accounting directions, further Company’s IT systems);
sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements. affect loan loss provisioning under the ECL approach. •
Enquired with the management regarding significant
Emphasis of Matter Note 3.5 read with Note 2.3 to the Standalone Ind AS Financial judgments and estimates involved in the impairment
Statements explains the various matters that the management computation and additional management overlay provision
We draw attention to Note 2.2 to the accompanying Standalone Ind AS financial statements, which describes the impact of COVID-19 has considered for developing this expected credit loss model. arising from the effects of the COVID-19 pandemic, and
pandemic, and its possible consequential implications on the Company’s operations and financial metrics, including the Company’s evaluated the reasonableness thereof;
estimates of impairment of loans and that such estimates may be affected by the severity and duration of the pandemic. Our opinion is As at March 31, 2020, the Company has made a provision for
not modified in respect of this matter. impairment loss aggregating Rs. 1,52,297 Lakhs against the loans • Assessed analytical reviews of disaggregated data to observe
outstanding. Due to the significance of the judgments used in any unusual trends warranting additional audit procedures;
Key Audit Matters both classification of loans into various stages as well as the and
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Ind computation of expected credit losses on such financial assets as •
Read the financial statement disclosures in respect of
AS financial statements for the financial year ended March 31, 2020. These matters were addressed in the context of our audit of the per Ind AS 109, this has been considered as a key audit matter. impairment losses on financial assets, including the specific
Standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on disclosures made with regard to the impact of COVID-19 on
these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. the ECL estimation.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled Audit in an Information Technology (IT) enabled environment – including considerations on exceptions identified in IT
the responsibilities described in the Auditor’s responsibilities for the audit of the Standalone Ind AS financial statements section of our environment
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to Key audit matters How our audit addressed the key audit matter
our assessment of the risks of material misstatement of the Standalone Ind AS financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying The Company has information technology applications which In assessing the reliability of electronic data processing, we
Standalone Ind AS financial statements. are used across various class of transactions in its operations included specialized IT auditors in our audit team. Our audit
including automated and IT dependent manual controls that are procedures focused on the IT infrastructure and applications
Key audit matters How our audit addressed the key audit matter
embedded in them. relevant to financial reporting:
Impairment of Financial Assets based on Expected Credit Loss (‘ECL’) (as described in Note 3.5 of the Standalone Ind AS Financial
Statements) Due to the pervasive nature and complexity of the Company’s IT • Assessing the information systems and the applications that is
environment, we place significant emphasis on the information available in the Company in two phases: (i) IT General Controls
Financial instruments, which include loans to customers, • Understood the Company’s key credit processes comprising
systems, the controls, and process around such information and (ii) Application level embedded controls;
represents a significant portion of the total assets of the Company. granting, recording and monitoring of loans as well as
systems and the usage of information from such systems for the • The aspects covered in the IT systems General Control audit
The Company has loans aggregating Rs 56,92,570 lakhs as at impairment provisioning.
purpose of financial reporting by the management for our audit. were (i) User Access Management (ii) Change Management
March 31, 2020. • Read and assessed the Company’s impairment provisioning Accordingly, this has been considered as a key audit matter. (iii) Other related ITGCs; - to understand the design and the
Estimates regarding the impairment provision against financial policy as per Ind AS 109;
operating effectiveness of such controls in the system;
assets are based on the expected credit loss model developed by
97 98
Independent Auditor’s Report (Contd.) Independent Auditor’s Report (Contd.)

Audit in an Information Technology (IT) enabled environment – including considerations on exceptions identified in IT
environment
Other Information
•
Understanding of the changes that were made to the IT
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
landscape during the audit period and assessing changes that
included in the Annual report, but does not include the Standalone Ind AS financial statements and our auditor’s report
have impact on financial reporting;
thereon.
• Performed tests of controls (including over compensatory
Our opinion on the Standalone Ind AS financial statements does not cover the other information and we do not express
controls wherever applicable) on the IT Application controls
any form of assurance conclusion thereon.
and IT dependent manual controls in the system.
In connection with our audit of the Standalone Ind AS financial statements, our responsibility is to read the other information
• Wherever applicable, we also assessed through direct sample
and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our
tests, the information produced from these systems which
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
were relied upon for our audit.
we conclude that there is a material misstatement of this other information, we are required to report that fact. We have
Pending litigations with tax authorities as described in Note 38(a) of the Standalone Ind AS Financial Statements) nothing to report in this regard.
Key audit matters How our audit addressed the key audit matter Responsibilities of Management for the Standalone Ind AS Financial Statements
The Company operates in a complex tax environment and is In assessing the exposure of the Company for the tax litigations, The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
required to discharge direct and indirect tax obligations under we have performed the following procedures: preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial
various legislations such as Income Tax Act, 1961, the Finance Act, performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with
• Obtained an understanding of the process laid down by the
1994 Goods and Services Tax Acts and VAT Acts of various states, the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under
management for performing their assessment taking into
as may be applicable. Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility
consideration past legal precedents, changes in laws and
also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
The tax authorities under these legislations have raised certain regulations, expert opinions obtained from external tax / legal
tax demands on the Company in respect of the past periods. The experts (as applicable);
of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application
Company has disputed such demands and has appealed against
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design,
• Assessed the processes and entity level controls established implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
them at appropriate forums. As at March 31, 2020 the Company by the Company to ensure completeness of information with
has an amount of Rs. 67,640 Lakhs pertaining to various pending accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind
respect to tax litigations; AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
tax litigations.
•
Along with our tax experts, we undertook the following error.
Under Ind AS, the Company is required to perform an assessment of procedures:
the probability of economic outflow on account of such disputed In preparing the Standalone Ind AS financial statements, management is responsible for assessing the Company’s ability
tax matters and determine whether any particular obligation • Read communications with relevant tax authorities including to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
needs to be recorded as a provision in the books of account or to notices, demands, orders, etc., relevant to the pending basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic
be disclosed as a contingent liability. Considering the significant litigations, as made available to us by the management; alternative but to do so.
degree of judgement applied by the management in making such • Tested the accuracy of disputed amounts from the underlying Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
assessments and the resultant impact on the financial statements, communications received from tax authorities and responses
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
we have considered it to be a key audit matter. filed by the Company;
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS financial statements as a whole
• Considered the submissions made to appellate authorities
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
and expert opinions obtained by the Company from external
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
tax / legal experts (wherever applicable) which form the basis
with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
for management’s assessment;
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
• Assessed the positions taken by the management in the light decisions of users taken on the basis of these Standalone Ind AS financial statements.
of the aforesaid information and based on the examination of
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
the matters by our tax experts.
throughout the audit. We also:
•
Read the disclosures included in the Standalone Ind AS
• Identify and assess the risks of material misstatement of the Standalone Ind AS financial statements, whether due
Financial Statements in this regard.
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
99 100

on whether the Company has adequate internal financial controls with reference to financial statements in place and (f ) With respect to the adequacy of the internal financial controls over financial reporting of the Company with
the operating effectiveness of such controls. reference to these Standalone Ind AS financial statements and the operating effectiveness of such controls, refer to
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related our separate Report in “Annexure 2” to this report;
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the (g) In our opinion, the managerial remuneration for the year ended March 31, 2020 has been paid / provided by the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such (h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to
the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as
the explanations given to us:
a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Ind AS financial statements, including the i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS
disclosures, and whether the Standalone Ind AS financial statements represent the underlying transactions and events financial statements – Refer Note 38(a) to the Standalone Ind AS financial statements;
in a manner that achieves fair presentation.
ii. Provision has been made in the Standalone Ind AS financial statements, as required under the applicable law
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative
audit. contracts – Refer Note 7 and 9 to the Standalone Ind AS financial statements;
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
thought to bear on our independence, and where applicable, related safeguards. Protection Fund by the Company
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Standalone Ind AS financial statements for the financial year ended March 31, 2020 and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be For S.R. BATLIBOI & ASSOCIATES LLP
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh Chartered Accountants
the public interest benefits of such communication ICAI Firm Registration Number: 101049W/E300004
Report on Other Legal and Regulatory Requirements
per Subramanian Suresh
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India Partner
in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified Membership Number: 083673
UDIN: 20083673AAAAAY1077
in paragraphs 3 and 4 of the Order.
Place of Signature : Chennai
2. As required by Section 143(3) of the Act, we report that: Date : June 3, 2020
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as
amended;
(e) On the basis of the written representations received from the directors as on March 31, 2020 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in
terms of Section 164 (2) of the Act;
101 102
Annexure 1 referred to in our report of even date Annexure 1 referred to in our report of even date (Contd.)
Re: Cholamandalam Investment and Finance Company Limited (“the Company”) (c) According to the records of the Company, the dues outstanding of Income tax, Sales Tax, Value Added Tax and Service Tax which
have not been deposited on account of any dispute are as follows:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation ` in lacs
of property, plant and equipment. Name of the statute Nature of dues Amount not Period to which Forum where the
deposited the amounts relate dispute is pending
(b) Property, plant and equipment have been physically verified by the management during the year and no material
discrepancies were identified on such verification. Income Tax Act, 1961 Tax and interest 24,284 1990-91, 1991-92, 2008-09, Income Tax Appellate Tribunal
2012-13 & 2016-17
(c) According to the information and explanations given by the management, the title deeds of immovable properties
6,247 2012-13 to 2014-15 & 2016-17 CIT(Appeal)
included in property, plant and equipment are held in the name of the company. Immovable properties of loan
Bihar Finance Act, 1981 Sales Tax 2 1992-93 & 1993-94 Sales Tax Appellate Tribunal
and buildings whose title deeds have been pledged in favour of Trustees for the benefit of debenture holders as
Gujarat Sales Tax Act, 1969 Sales Tax 2 1997-98 Sales Tax Appellate Tribunal
security for the Redeemable Non-convertible Debentures, are held in the name of the Company based on the
Rajasthan Sales Tax Act Sales Tax 14 2012-13, 2016-17 - 2017-18 Tribunal/ Assessing Officer
Trust Deed executed between the Trustees and the Company.
Karnataka Sales Tax Act Sales Tax 357 2007-08 to 2013-14 Karnataka High court
(ii) The Company’s business does not involve inventories and, accordingly, the requirements under paragraph 3(ii) of the Delhi Sales Tax Act, 1975 Sales Tax 8 1991-92 Deputy Commissioner of Sales Tax
Order are not applicable to the Company.
Odisha Value Added Sales Tax 303 2007-08 to 2013-2014 Sales Tax Appellate Tribunal/
(iii) (a) The Company has granted loans to one subsidiary Company and one associate covered in the register maintained Tax Act, 2004 Joint Commissioner
under Section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations Tamil Nadu Value Added Sales Tax 1,029 2007-08 to 2013-14 Supreme Court
given to us, the terms and conditions of the grant of such loans are not prejudicial to the Company's interest. Tax Act, 2006
Tamil Nadu General Sales TNGST & CST 999 1994-95 High Court of Madras
(b) The schedule of repayment of principal and payment of interest has been stipulated for the loans granted and the
repayment/receipts are regular. Tax Act, 1959
Uttar Pradesh Sales Tax Act Sales Tax 62 1987-2003 UP Tribunal
(c) According to the information and explanations given by the management there are no amounts of loans which
Finance Act, 1994 Service Tax 19,690 2005-06 to 2017-18 CESTAT
are overdue for more than ninety days from a Company covered in the register maintained under Section 189 of
*net of tax paid under protest/ refund adjusted
the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, (viii) In our opinion and according to the information and explanations given by the management, the Company has not
guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Act are applicable and defaulted in repayment of loans or borrowing to a financial institution, bank or government or dues to debenture
hence not commented upon. holders.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Companies Act 2013 and (ix) According to the information and explanations given by the Management, the Company has not raised any money
the Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year. Accordingly, the provisions of by way of initial public offer or further public offer. Further, monies raised by the Company by way of term loans
clause 3(v) of the Order are not applicable. were applied for the purpose for which those were raised, though idle/surplus funds which were not required for
immediate utilisation were gainfully invested in liquid assets payable on demand.
(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial
records under Section 148(1) of the Companies Act, 2013, for the services of the Company.
statements and according to the information and explanations given by the management, we report that no fraud by
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident the Company or no material fraud on the Company by the officers and employees of the Company has been noticed
fund, employees’ state insurance, income-tax, sales tax, service tax, value added tax, goods and services tax, duty or reported during the year.
of custom, cess and other material statutory dues applicable to it. The provisions relating to wealth tax, and duty (xi) According to the information and explanations given by the management, the managerial remuneration has been
of excise are not applicable to the Company. paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with
Schedule V to the Companies Act 2013.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of
provident fund, employees’ state insurance, income-tax, sales tax, service tax, value added tax, goods and services
tax, duty of custom, cess and other material statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
103 104
Annexure 1 referred to in our report of even date (Contd.) Annexure 2 to the Independent Auditor’s Report of even
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not
applicable to the Company and hence not commented upon.
date on the Standalone Ind AS Financial Statements of
(xiii) According to the information and explanations given by the management, transactions with the related parties are in Cholamandalam Investment and Finance Company Limited
compliance with Sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed
in the notes to the financial statements, as required by the applicable accounting standards. Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(“the Act”)
(xiv) According to the information and explanations given by the management, the Company has complied with provisions
of Section 42 of the Companies Act, 2013 in respect of the preferential allotment or private placement of shares and We have audited the internal financial controls over financial reporting of Cholamandalam Investment and Finance Company
the Company has not issued fully or partly convertible debentures during the year. According to the information Limited (“the Company”) as of March 31, 2020 in conjunction with our audit of the Standalone Ind AS financial statements of
and explanations given by the management, we report that the amounts raised, have been used for the purposes for the Company for the year ended on that date.
which the funds were raised.
Management’s Responsibility for Internal Financial Controls
(xv) According to the information and explanations given by the management, the Company has not entered into any
non-cash transactions with directors or persons connected with him as referred to in Section 192 of Companies Act, The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal
2013. control over financial reporting criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
(xvi) According to the information and explanations given to us, we report that the Company has registered as required, of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate
under Section 45-IA of the Reserve Bank of India Act, 1934. internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
For S.R. BATLIBOI & ASSOCIATES LLP errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information,
Chartered Accountants as required under the Companies Act, 2013.
ICAI Firm Registration Number: 101049W/E300004
Auditor’s Responsibility
Partner Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting with reference
Membership Number: 083673 to these Standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance
Place of Signature : Chennai
Date : June 3, 2020
Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing
as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting with reference to these Standalone Ind AS financial statements
was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
over financial reporting with reference to these Standalone Ind AS financial statements and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting with reference to these Standalone Ind AS financial statements, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls over financial reporting with reference to these Standalone Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with Reference to these Financial Statements
A company's internal financial control over financial reporting with reference to these Standalone Ind AS financial statements
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles. A company's
internal financial control over financial reporting with reference to these Standalone Ind AS financial statements includes
those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
105 106
Annexure 2 to the Independent Auditor’s Report of even date Standalone Ind AS Balance Sheet
As at March 31, 2020
on the Standalone Financial Statements of Cholamandalam Note No. As at
` in lakhs
As at
Investment and Finance Company Limited (Contd.)

31.03.2020 31.03.2019
ASSETS
Financial Assets
Cash and Cash Equivalents 5 3,46,188 3,13,893
Bank Balances other than Cash and Cash Equivalents 6 3,49,722 53,592
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
Derivative financial instruments 7 11,420 8,869
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting Receivables 8
principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of i) Trade Receivables 661 441
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ii) Other Receivables 5,213 3,908
Loans 9 55,40,273 52,62,227
of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial Investments 10 7,292 7,292
statements. Other Financial Assets 11 41,327 13,512
63,02,096 56,63,734
Inherent Limitations of Internal Financial Controls Over Financial Reporting with Reference to these Standalone Ind Non - Financial Assets
AS Financial Statements Current tax assets (Net) 15,208 14,639
Deferred tax assets (Net) 12 52,083 45,300
Because of the inherent limitations of internal financial controls over financial reporting with reference to these Standalone Investment Property 13 14 14
Property, Plant and Equipment 14 25,599 14,286
Ind AS financial statements, including the possibility of collusion or improper management override of controls, material Intangible assets under development 1,026 1,310
misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal Other Intangible assets 15 1,747 1,976
financial controls over financial reporting with reference to these Standalone Ind AS financial statements to future periods Other Non-Financial Assets 16 1,531 1,371
97,208 78,896
are subject to the risk that the internal financial control over financial reporting with reference to these Standalone Ind AS
TOTAL ASSETS 63,99,304 57,42,630
financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the LIABILITIES AND EQUITY
policies or procedures may deteriorate. Financial Liabilities
Derivative financial instruments 7 - 841
Opinion Payables
(I) Trade Payables
In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with i) Total outstanding dues of micro and small enterprises 70 -
reference to these Standalone Ind AS financial statements and such internal financial controls over financial reporting with ii) Total outstanding dues of creditors other than micro and small enterprises 20,220 20,742
(II) Other Payables
reference to these Standalone Ind AS financial statements were operating effectively as at March 31, 2020, based on the i) Total outstanding dues of micro and small enterprises - -
internal control over financial reporting criteria established by the Company considering the essential components of ii) Total outstanding dues of creditors other than micro and small enterprises 9,949 12,894
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Debt Securities 17 7,32,683 14,18,431
Borrowings(Other than Debt Securities) 18 43,27,308 32,12,375
Institute of Chartered Accountants of India. Subordinated Liabilities 19 4,40,552 4,25,868
Other Financial Liabilities 20 38,621 21,207
55,69,403 51,12,358
For S.R. BATLIBOI & ASSOCIATES LLP Non - Financial Liabilities
Provisions 21 9,076 7,402
Chartered Accountants Other Non-Financial Liabilities 22 3,641 5,296
ICAI Firm Registration Number: 101049W/E300004 12,717 12,698
Equity
per Subramanian Suresh Equity share capital 23A 16,398 15,643
Partner Other Equity 23B 8,00,786 6,01,931
Membership Number: 083673 8,17,184 6,17,574
Place of Signature : Chennai TOTAL LIABILITIES AND EQUITY 63,99,304 57,42,630
Date :June 3, 2020
The accompanying notes are integral part of the financial statements.

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

per Subramanian Suresh Arun Alagappan M.M. Murugappan
Partner Managing Director Chairman
Membership No: 083673
Date : June 3, 2020 P. Sujatha D. Arul Selvan

Place : Chennai Company Secretary Chief Financial Officer
107 108

Expenses

- Fee Income
Corporate Overview
- Finance costs
- Sale of Services
- Interest Income
- Other expenses
- Other income (II)
Tax expense/(benefit)

Revenue from Operations

- Employee benefits expense
Other Comprehensive income:
For S.R. Batliboi & Associates LLP

Earnings per equity share of ₹ 2 each

- Impairment of Financial Instruments
- Depreciation and amortisation expense

For the year ended March 31, 2020
- Net gain on Fair value change on financial instruments
Date : June 3, 2020

Place : Chennai

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

i) Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Total comprehensive income net of tax for the period (A + B)

Other comprehensive income/(loss) net of tax for the period (B)
Profit for the year - A = (V) - (VI)
Net tax expense (VI)
Profit before tax (V) = (III) - (IV)
Total Expenses (IV)
Total Income (III) = (I) + (II)
Total Revenue from operations (I)
- Diluted (₹)
- Basic ( ₹)
Income tax impact
Cashflow Hedge Reserve
Income tax impact
Re-measurement gains / (losses) on defined benefit plans (net)
Deferred tax
- Adjustment of tax relating to earlier periods
Current tax

30

25
29
28
27
26
24B
24C
24A
24D
Note No.
13, 14 & 15
Company Secretary
P. Sujatha
Managing Director
Arun Alagappan
Standalone Ind AS Statement of Profit and Loss
(6,345)
1,58,573
3,261
(9,232)
(499)
(3,396)
-
89,733
24,727
98,892
1,05,237
53,336
7,06,716
8,65,289
26
8,65,263
Year ended
13.35
13.37
125
56,732
81,506
10,754
65,500
4,59,223
7,570
1,563
18,987
8,12,416
31.03.2020
Financial Statements
31.03.2019
Year ended
15.16
15.17
1,19,024
409
(456)
1,306
237
(678)
1,18,615
63,700
(9,349)
1,600
71,449
1,82,315
5,16,949
62,349
5,548
59,058
31,120
3,58,874
6,99,264
67
6,99,197
9,042
6,328
17,606
8,670
6,57,551
` in lakhs
Chairman
M.M. Murugappan
Chief Financial Officer

D. Arul Selvan
For and on behalf of the Board of Directors
109
110
Standalone Ind AS Statement of Changes in Equity
` in lakhs
a) Equity Share Capital

Balances as on April 01, 2018 15,640
Add: Issue of share capital 3
Balances as on March 31, 2019 15,643
Add: Issue of share capital 755
Balances as on March 31, 2020 16,398
b) Other Equity (Refer Note 23)

` in lakhs
Reserve and Surplus Items of other
comprehensive income
Cholamandalam Investment and Finance Company Limited
Particulars Share Statutory Capital Capital Securities General Retained Share based Fair Effective Total
application Reserve Reserve Redemption Premium Reserve earnings Payments valuation of portion of
money Reserve Account reserve Investment cashflow
pending hedge
allotment
Balance as at March 31, 2019 - 1,06,046 4 3,300 1,66,849 2,48,777 76,450 1,861 (129) (1,227) 6,01,931
Profit for the year - - - - - - 1,05,237 - - - 1,05,237
Remeasurement of defined - - - - - - (374) - - - (374)
benefit plans
Total comprehensive income for
the period, net of income tax - - - - - - - - - (5,971) (5,971)
Dividend including DDT - - - - - (20,032) - - - (20,032)
Addition during the year 10 22,000 - - 1,19,750 50,000 - 1,156 - - 1,92,916
Utilisation of securities premium - - - - (921) - - - - - (921)
Transfer to reserves from - - - - (72,000) - - - (72,000)
retained earnings during the year
Balance as at March 31, 2020 10 1,28,046 4 3,300 2,85,678 2,98,777 89,281 3,017 (129) (7,198) 8,00,786
Balance as at March 31, 2018 - 82,046 4 3,300 1,66,679 1,88,777 54,528 1,046 (129) (2,077) 4,94,174
Profit for the year - - - - - - 1,18,615 - - - 1,18,615
Remeasurement of defined - - - - - - (441) - - - (441)
benefit plans
Total comprehensive income - - - - - - - - - 850 850
for the year, net of income tax
Dividend including DDT - - - - - - (12,252) - - (12,252)
Addition during the year - - - - 170 - - 815 - - 985
Transfer to reserves from - 24,000 - - 60,000 (84,000) - - - -
Balance as at March 31, 2019 - 1,06,046 4 3,300 1,66,849 2,48,777 76,450 1,861 (129) (1,227) 6,01,931

Annual Report 2019 - 20

Standalone Ind AS Cash Flow Statement Standalone Ind AS Cash Flow Statement (Contd.)
For the year ended March 31, 2020 For the year ended March 31, 2020
` in lakhs ` in lakhs
Particulars Year ended Year ended Particulars Year ended Year ended
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Cash Flow from Operating Activities Repayment of Borrowings other than debt securities (34,18,400) (20,75,813)
Profit Before Tax 1,58,573 1,82,315 Proceeds from issue of subordinated liabilities 45,000 82,100
Adjustments to reconcile profit before tax to net cash flows:- Repayment of subordinated liabilities (29,500) (18,650)
Depreciation and amortisation expense 10,754 5,548 4,44,719 12,23,676
Impairment of financial instruments 89,733 31,120 Investment in Bank Fixed Deposits (net of withdrawals) (2,93,415) 10,385
Finance Costs 4,59,223 3,58,874 Dividends Paid (Including Distribution Tax) (20,027) (12,239)
Loss on Sale of Property plant and equipment (Net) 13 13 Net Cash From Financing Activities (C)
2,46,061 12,21,996
Net gain on fair value change in financial instruments (1,563) (6,328) Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 32,295 2,88,514
Interest Income on bank deposits (24,285) (7,928) Cash and Cash Equivalents at the Beginning of the Period 3,13,893 25,379
Share based payment expense 1,153 798 Cash and Cash Equivalents at the End of the Period 3,46,188 3,13,893
5,35,028 3,82,097
Operating Profit Before Working Capital Changes 6,93,601 5,64,412 The accompanying notes are integral part of the financial statements
Adjustments for :-
(Increase)/Decrease in operating Assets As per our report of even date
- Loans (8,03,568) (11,89,974) For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors
- Trade receivables (1,525) 5,052
- Other Financial Assets (27,816) (4,702)
- Other Non Financial Assets (161) (8,33,070) (129) (11,89,753) per Subramanian Suresh Arun Alagappan M.M. Murugappan
Proceeds from de-recognition of financial assets recognised at amortised cost 4,35,789 1,18,220 Partner Managing Director Chairman
Increase/(Decrease) in operating liabilities & provisions
- Payables (3,895) 5,850 Date : June 3, 2020 P. Sujatha D. Arul Selvan
- Other Financial liabilities 5,367 1,228 Place : Chennai Company Secretary Chief Financial Officer
- Provisions 1,674 1,047

- Other Non Financial liabilities (820) 2,326 245 8,370
Cash Flow used in Operations 2,98,646 (4,98,751)
Finance Costs paid (4,71,542) (3,68,945)
Interest Received on Bank Deposits 21,575 7,379
(4,49,967) (3,61,566)
(1,51,321) (8,60,317)
Income tax paid (Net of refunds) (57,301) (72,807)
Net Cash Used in Operating Activities (A) (2,08,622) (9,33,124)
Cash Flow from Investing Activities
Purchase of Property, plant and Equipment and Intangible Assets (6,815) (6,810)
Proceed from sale of Property, plant and Equipment 108 124
Movement of Investment (net) 1,563 6,328
Net Cash Used in Investing Activities (B) (5,144) (358)
Cash Flow from Financing Activities
Proceeds from issue of Share Capital (Including Securities Premium) 1,19,584 174
Payment of Lease liabilities (4,800) -
Proceeds from issue of Debt securities 19,40,525 17,08,570
Redemption of Debt securities (26,09,365) (17,36,533)
Proceeds from Borrowing other than debt securities 45,16,459 32,64,002
111 112
Notes forming part of the Standalone Ind AS Financial Statements Notes forming part of the Standalone Ind AS Financial Statements (Contd.)
1. Corporate information In respect of the Company's loan book, Management within 12 months after the reporting date (current) and 3.2 Financial assets and liabilities
has made impairment provisions as more fully explained more than 12 months after the reporting date (non–

Cholamandalam Investment and Finance Company Limited 3.2.1 Bank balances, Loans, Trade receivables and financial
below. However, the full extent of impact of the COVID-19 current) is presented in notes to the financial statements.
(“the Company”) (CIN L65993TN1978PLC007576) is a public investments at amortised cost
pandemic on the Company's operations, and financial Financial assets and financial liabilities are generally
limited Company domiciled in India. The Company is listed The Company Measures Bank balances, Loans, and other
metrics (including impact on impairment provisions on reported gross in the balance sheet. They are only
on Bombay Stock Exchange and National Stock Exchange. financial investments at amortised cost if both of the
loans) will further depend on government and regulatory offset and reported net when, in addition to having an
The Company is one of the premier diversified non-banking following conditions are met:
guidelines and future developments which are uncertain unconditional legally enforceable right to offset the
finance companies in India, engaged in providing vehicle
and incapable of estimation at this time. recognised amounts without being contingent on a future • The financial asset is held within a business model with
finance, home loans and Loan against property.
2.3 Impact of Covid-19 on Impairment Allowance event, the parties also intend to settle on a net basis in all the objective to hold financial assets in order to collect
The standalone financial statements are presented in INR contractual cash flows and
the following circumstances:
which is also functional currency of the Company.
In terms of the COVID-19 Regulatory Package of the RBI, vide
guidelines dated March 27, 2020 and April 17, 2020, and in • The normal course of business • The contractual terms of the financial asset give rise on
2.1 Basis of preparation specified dates to cash flows that are solely payments
accordance with the Scheme approved by the Company’s • The event of default
The standalone financial statements of the Company have Board of Directors (“Board”), the Company has granted of principal and interest (SPPI) on the principal amount
• The event of insolvency or bankruptcy of the Company outstanding.
been prepared in accordance with Indian Accounting to all eligible borrowers, moratorium of three months on
and/or its counterparties
Standards (Ind AS) notified under the Companies (Indian the payment of all loan instalments falling due between The details of these conditions are outlined below.
Accounting Standards) Rules, 2015 (as amended from time March 1, 2020 and May 31, 2020. Further, pursuant to RBI 3. Significant accounting policies
3.2.1.1 Business model assessment
to time). notification dated May 23, 2020 the moratorium is being 3.1 Financial instruments – initial recognition
extended for a further period of three months in accordance The Company determines its business model at the level
The standalone financial statements have been prepared 3.1.1 Date of recognition
with the Company’s policy approved by its Board. In this that best reflects how it manages Company’s of financial
on a historical cost basis, except for fair value through other
connection, having regard to the guidance provided by Financial assets and liabilities, with the exception of loans, assets to achieve its business objective.
comprehensive income (FVOCI) instruments, fair value
the RBI and the Institute of Chartered Accountants of India, debt securities, and borrowings are initially recognised on The Company's business model is not assessed on an
through Profit and Loss (FVTPL) instruments, derivative
extension of such moratorium benefit to borrowers as the trade date, i.e., the date that the Company becomes
financial instruments and Certain financial assets and instrument-by-instrument basis, but at a higher level of
per the COVID-19 Regulatory Package of the RBI by itself a party to the contractual provisions of the instrument.
financial liabilities measured at fair value (refer accounting aggregated portfolios and is based on observable factors
is not considered to result in significant increase in credit Loans are recognised when fund transfers are initiated to
policy regarding financial instruments) such as:
risk as per Ind AS 109. Further, estimates and associated the customers’ account or cheques for disbursement have
The standalone financial statements are presented in been prepared by the Company (as per the terms of the •
How the performance of the business model and
assumptions applied in preparing the financial statements,
Indian Rupees (INR) and all values are rounded to the agreement with the borrowers). The Company recognises the financial assets held within that business model
especially in respect of expected credit loss on loans,
nearest lakhs, except when otherwise indicated. debt securities and borrowings when funds reach the are evaluated and reported to the entity's key
are based on historical experience and other emerging/
Company. management personnel
The regulatory disclosures as required by Master Directions forward looking factors including those arising on account
for Non-Banking Financial Company - Systemically of the COVID-19 pandemic. 3.1.2 Initial measurement of financial instruments • The risks that affect the performance of the business
Important Non-Deposit taking Company Directions, 2016 model (and the financial assets held within that
The Company, inter alia, has used relevant indicators The classification of financial instruments at initial

issued by the RBI (‘RBI Master Directions’) to be included business model) and, in particular, the way those risks
of moratorium along with an estimation of potential recognition depends on their contractual terms and the
as a part of the Notes to Accounts are prepared as per the are managed
stress on probability of defaults and loss given defaults business model for managing the instruments. Financial
Ind AS financial statements pursuant to the notification on due to COVID-19 situation in developing the estimates instruments are initially measured at their fair value, except • How managers of the business are compensated (for
Implementation of Indian Accounting Standards, dated and assumptions to assess the expected credit loss on in the case of financial assets and financial liabilities recorded example, whether the compensation is based on the
March 13, 2020. loans, including on account of potential macro economic at FVTPL (Fair value through profit and loss), transaction fair value of the assets managed or on the contractual
2.2 Impact of Covid-19 on business conditions and has provided for an expected credit loss costs are added to, or subtracted from, this amount. cash flows collected)
of Rs. 59,306 lakhs for the year ended March 31, 2020. • The expected frequency, value and timing of sales are
The COVID-19 pandemic has resulted in a significant 3.1.3
Measurement categories of financial assets and
However, considering the inherent uncertainty regarding also important aspects of the Company’s assessment
decrease in economic activity across the country. The liabilities
the severity and duration of the pandemic and the resultant
Government of India and the respective State Governments The Company classifies all of its financial assets based The business model assessment is based on reasonably
economic impact the company’s actual impairment loss
announced a strict lockdown to contain the spread of on the business model for managing the assets and the expected scenarios without taking 'worst case' or 'stress
could be different from these estimates.
the virus which was further extended twice across the asset’s contractual terms, measured at either: case’ scenarios into account. If cash flows after initial
nation with some relaxations in specific areas. This has 2.4 Presentation of financial statements • Amortised cost recognition are realised in a way that is different from
had a consequential impact on the regular operations of The Company presents its balance sheet in order of • FVTPL the Company's original expectations, the Company does
the Company, including lending and collection activities. liquidity. An analysis regarding recovery or settlement • FVOCI not change the classification of the remaining financial
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Notes forming part of the Standalone Ind AS Financial Statements (Contd.) Notes forming part of the Standalone Ind AS Financial Statements (Contd.)
assets held in that business model, but incorporates such 3.2.4 Undrawn loan commitments or more entities (the'), when all of the following three proceeds received on such sale and the carrying value of
information when assessing newly originated or newly Undrawn loan commitments are commitments under conditions are met: the transferred asset is recognised as gain or loss on de-
purchased financial assets going forward. which, over the duration of the commitment, the Company • The Company has no obligation to pay amounts to the recognition of such financial asset previously carried under
is required to provide a loan with pre-specified terms to the eventual recipients unless it has collected equivalent amortisation cost category. The resulting interest only strip
3.2.1.2 The SPPI test
customer. Undrawn loan commitments are in the scope of amounts from the original asset, excluding short-term initially is recognised at FVTPL.
As a second step of its classification process the Company
the ECL requirements. advances with the right to full recovery of the amount 3.4.2 Financial liabilities
assesses the contractual terms of financial to identify
lent plus accrued interest at market rates
whether they meet the SPPI test. The nominal contractual value of undrawn loan A financial liability is derecognised when the obligation
commitments, where the loan agreed to be provided is on • The Company cannot sell or pledge the original asset under the liability is discharged, cancelled or expires. Where
‘Principal’ for the purpose of this test is defined as the fair
market terms, are not recorded in the balance sheet. The other than as security to the eventual recipients an existing financial liability is replaced by another from the
value of the financial asset at initial recognition and may
nominal values of these commitments together with the • The Company has to remit any cash flows it collects same lender on substantially different terms, or the terms of an
change over the life of the financial asset (for example, if
corresponding ECLs are disclosed in notes. on behalf of the eventual recipients without material existing liability are substantially modified, such an exchange
there are repayments of principal or amortisation of the
3.3 Reclassification of financial assets and liabilities delay. In addition, the Company is not entitled to or modification is treated as a derecognition of the original
premium/discount).
reinvest such cash flows, except for investments in liability and the recognition of a new liability. The difference
The Company does not reclassify its financial assets
The most significant elements of interest within a cash or cash equivalents including interest earned, between the carrying value of the original financial liability
subsequent to their initial recognition, apart from the
lending arrangement are typically the consideration during the period between the collection date and the and the consideration paid is recognised in profit or loss.
exceptional circumstances in which the Company
for the time value of money and credit risk. To make the date of required remittance to the eventual recipients. 3.5 Impairment of financial assets
acquires, disposes of, or terminates a business line.
SPPI assessment, the Company applies judgement and
Financial liabilities are never reclassified. The Company A transfer only qualifies for derecognition if either: 3.5.1 Overview of the ECL principles
considers relevant factors such as the currency in which
did not reclassify any of its financial assets or liabilities in • The Company has transferred substantially all the risks The Company records allowance for expected credit
the financial asset is denominated, and the period for
2019-20 and 2018-19. and rewards of the asset losses for all loans, other debt financial assets not held at
which the interest rate is set.
3.4 Derecognition of financial assets and liabilities Or FVTPL, together with loan commitments, in this section all
3.2.2 Equity instruments at FVOCI
referred to as ‘financial instruments’. Equity instruments are
3.4.1 Derecognition of financial assets other than due to •
The Company has neither transferred nor retained
The Company subsequently measures all equity not subject to impairment under Ind AS 109.
substantial modification substantially all the risks and rewards of the asset, but
investments at fair value through profit or loss, unless the
has transferred control of the asset The ECL allowance is based on the credit losses expected
3.4.1.1 Financial assets
Company’s management has elected to classify irrevocably to arise over the life of the asset (the lifetime expected
some of its equity investments as equity instruments at A financial asset (or, where applicable, a part of a financial The Company considers control to be transferred if and
credit loss or LTECL), unless there has been no significant
FVOCI, when such instruments meet the definition of asset or part of a group of similar financial assets) is only if, the transferee has the practical ability to sell the
increase in credit risk since origination, in which case, the
derecognised when the rights to receive cash flows asset in its entirety to an unrelated third party and is able
Equity under Ind AS 32 Financial Instruments: Presentation allowance is based on the 12 months’ expected credit loss
from the financial asset have expired. The Company also to exercise that ability unilaterally and without imposing
and are not held for trading. Such classification is (12mECL) as outlined in Notes.
derecognises the financial asset if it has both transferred the additional restrictions on the transfer.
determined on an instrument-by-instrument basis.
The 12mECL is the portion of LTECLs that represent
financial asset and the transfer qualifies for derecognition. When the Company has neither transferred nor retained
Gains and losses on these equity instruments are never the ECLs that result from default events on a financial
The Company has transferred the financial asset if, and substantially all the risks and rewards and has retained
recycled to profit or loss. Dividends are recognised in profit instrument that are possible within the 12 months after
only if, either: control of the asset, the asset continues to be recognised
or loss as dividend income when the right of the payment the reporting date.
only to the extent of the Company’s continuing
has been established, except when the Company benefits • The Company has transferred its contractual rights to Both LTECLs and 12mECLs are calculated on either an
involvement, in which case, the Company also recognises
from such proceeds as a recovery of part of the cost of the receive cash flows from the financial asset individual basis or a collective basis, depending on the
an associated liability. The transferred asset and the
instrument, in which case, such gains are recorded in OCI Or associated liability are measured on a basis that reflects nature of the underlying portfolio of financial instruments.
(Other Comprehensive Income) . Equity instruments at the rights and obligations that the Company has retained.
• It retains the rights to the cash flows, but has assumed The Company has established a policy to perform an
FVOCI are not subject to an impairment assessment.
an obligation to pay the received cash flows in full Continuing involvement that takes the form of a guarantee assessment, at the end of each reporting period, of
3.2.3 Debt securities and other borrowed funds without material delay to a third party under a ‘pass– over the transferred asset is measured at the lower of whether a financial instrument’s credit risk has increased
After initial measurement, debt issued and other borrowed through’ arrangement. the original carrying amount of the asset and the significantly since initial recognition, by considering the
funds are subsequently measured at amortised cost. Pass-through arrangements are transactions whereby the maximum amount of consideration the Company could be change in the risk of default occurring over the remaining
Amortised cost is calculated by taking into account any Company retains the contractual rights to receive the cash required to pay. life of the financial instrument.
discount or premium on issue funds, and costs that are an flows of a financial asset (the 'original asset'), but assumes In case where transfer of a part of financial assets Based on the above process, the Company categorises its
integral part of the EIR. a contractual obligation to pay those cash flows to one qualifies for de-recognition, any difference between the loans into Stage 1, Stage 2 and Stage 3, as described below:
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Stage 1: When loans are first recognised, the Company
The mechanics of the ECL method are summarised below: with an intention to realize by way of sale are considered as undertaking hedge, the hedging/ economic relationship,
recognises an allowance based on 12mECLs. Stage 1 loans Stage 1: The 12mECL is calculated as the portion of
Stage 3 assets and the ECL allowance is determined based the hedged item or transaction, the nature of the risk being
also include facilities where the credit risk has improved LTECLs that represent the ECLs that result from default on the estimated net realisable value of the repossessed hedged, hedge ratio and how the entity will assess the
and the loan has been reclassified from Stage 2. events on a financial instrument that are possible within asset. The Company resorts to regular repossession of effectiveness of changes in the hedging instrument’s fair
the 12 months after the reporting date. The Company collateral provided against vehicle loans. Further, in its value in offsetting the exposure to changes in the hedged
Stage 2: When a loan has shown a significant increase

calculates the 12mECL allowance based on the expectation normal course of business, the Company from time to item’s fair value or cash flows attributable to the hedged
in credit risk since origination, the Company records
of a default occurring in the 12 months following the time, also exercises its right over property through legal risk. Such hedges are expected to be highly effective in
an allowance for the LTECLs. Stage 2 loans also include achieving offsetting changes in fair value or cash flows
reporting date. These expected 12-month default procedures which include seizure of the property.
facilities, where the credit risk has improved and the loan and are assessed on an ongoing basis to determine that
probabilities are applied to a forecast EAD and multiplied As per the Company's accounting policy, collateral
has been reclassified from Stage 3. they actually have been highly effective throughout the
by the expected LGD and discounted by an approximation repossessed are not recorded on the balance sheet.
Stage 3: Loans considered credit-impaired. The Company
to the original EIR. financial reporting periods for which they were designated.
3.7 Write-offs
records an allowance for the LTECLs. Hedges that meet the strict criteria for hedge accounting
Stage 2: When a loan has shown a significant increase

Financial assets are written off either partially or in their are accounted for, as described below:
3.5.2 The calculation of ECLs in credit risk since origination, the Company records an
entirety only when the Company has no reasonable
allowance for the LTECLs PDs and LGDs are estimated over 3.9.1 Cash flow hedges
The Company calculates ECLs to measure the expected expectation of recovery. If the amount to be written
the lifetime of the instrument. The expected cash shortfalls A cash flow hedge is a hedge of the exposure to variability in
cash shortfalls, discounted at an approximation to the EIR. off is greater than the accumulated loss allowance, the
are discounted by an approximation to the original EIR. cash flows that is attributable to a particular risk associated
A cash shortfall is the difference between the cash flows difference recorded as an expense in the period of write
that are due to an entity in accordance with the contract Stage 3: For loans considered credit-impaired, the
off. Any subsequent recoveries are credited to impairment with a recognised asset or liability (such as all or some
Company recognises the lifetime expected credit losses for on financial instrument on statement of profit and loss. future interest payments on variable rate debt) or a highly
and the cash flows that the entity expects to receive.
these loans. The method is similar to that for Stage 2 assets, probable forecast transaction and could affect profit or loss.
The key elements of the ECL are summarised below: 3.8 Restructured, rescheduled and modified loans
with the PD set at 100%.
For designated and qualifying cash flow hedges, the
PD: The Probability of Default is an estimate of the likelihood The Company sometimes makes concessions or
Loan commitment: When estimating LTECLs for undrawn effective portion of the cumulative gain or loss on the
modifications to the original terms of loans such as
of default over a given time horizon. A default may only loan commitments, the Company estimates the expected hedging instrument is initially recognised directly in OCI
changing the instalment value or changing the tenor
happen at a certain time over the assessed period, if the portion of the loan commitment that will be drawn down within equity (cash flow hedge reserve).
of the loan, as a response to the borrower’s request. The
facility has not been previously derecognised and is still in over its expected life. The ECL is then based on the present
Company considers the modification of the loan only The ineffective portion of the gain or loss on the hedging
the portfolio. value of the expected shortfalls in cash flows if the loan is
before the loans gets credit impaired. instrument is recognised immediately in net gain/loss on
drawn down. The expected cash shortfalls are discounted
EAD: The Exposure at Default is an estimate of the exposure fair value changes in the profit and loss statement.
at an approximation to the expected EIR on the loan. For When the loan has been renegotiated or modified but not
at a future default date (in case of Stage 1 and Stage 2), When the hedged cash flow affects the statement of profit

an undrawn loan commitment, ECLs are calculated and derecognised, the Company also reassesses whether there
taking into account expected changes in the exposure and loss, the effective portion of the gain or loss on the
presented under provisions. has been a significant increase in credit risk. The Company
after the reporting date, including repayments of principal also considers whether the assets should be classified as hedging instrument is recorded in the corresponding income
3.5.3 Forward looking information
and interest, whether scheduled by contract or otherwise, Stage 3. Once an asset has been classified as restructured, or expense line of the statement of profit and loss. When the
expected drawdowns on committed facilities, and accrued In its ECL models, the Company relies on a broad range of it will remain restructured for a period of year from the forecast transaction subsequently results in the recognition
interest from missed payments. In case of Stage 3 loans forward looking information as economic inputs, such as: date on which it has been restructured. of a non-financial asset or a non-financial liability, the gains
EAD represents exposure when the default occurred. • GDP growth and losses previously recognised in OCI are reversed and
3.9 Hedge accounting
included in the initial cost of the asset or liability.
LGD: The Loss Given Default is an estimate of the loss • Unemployment rates

The Company makes use of derivative instruments to
When a hedging instrument expires, is sold, terminated,
arising in the case where a default occurs at a given time. The inputs and models used for calculating ECLs may manage exposures to interest rate and foreign currency. In
exercised, or when a hedge no longer meets the criteria
It is based on the difference between the contractual not always capture all characteristics of the market order to manage particular risks, the Company applies hedge
for hedge accounting, any cumulative gain or loss that
cash flows due and those that the lender would expect to at the date of the financial statements. To reflect this, accounting for transactions that meet specified criteria.
has been recognised in OCI at that time remains in OCI
receive, including from the realisation of any collateral. It is qualitative adjustments or overlays are made as temporary
At the inception of a hedge relationship, the Company and is recognised when the hedged forecast transaction
usually expressed as a percentage of the EAD. adjustments.
formally designates and documents the hedge relationship is ultimately recognised in the statement of profit and
Impairment losses and releases are accounted for and 3.6 Collateral repossessed to which the Company wishes to apply hedge accounting loss. When a forecast transaction is no longer expected
disclosed separately from modification losses or gains that The Company generally does not use the assets and the risk management objective and strategy for to occur, the cumulative gain or loss that was reported in
are accounted for as an adjustment of the financial asset’s repossessed for the internal operations. The underlying undertaking the hedge. The documentation includes the OCI is immediately transferred to the statement of profit
gross carrying value loans in respect of which collaterals have been repossessed Company’s risk management objective and strategy for and loss.
117 118
3.10 Recognition of interest income of the reversal of the temporary differences can be 3.12 Investment in Property Useful life of assets based on Management’s estimation
controlled and it is probable that the temporary and which are different from those specified in schedule II:
3.10.1 The effective interest rate method Investment property represents property held to earn
differences will not reverse in the foreseeable future
Under Ind AS 109 interest income is recorded using rentals or for capital appreciation or both.
Asset Description Estimated Useful Life
Deferred tax assets are recognised for all deductible Furniture and Fixtures* 5 years
the effective interest rate (‘EIR’) method for all financial Investment properties are measured initially at cost,
temporary differences, the carry forward of unused tax Vehicles* 5 years
instruments measured at amortised cost. The EIR is the rate including transaction costs. Subsequent to initial recognition,
credits and any unused tax losses. Deferred tax assets are
that discounts estimated future cash receipts through the investment properties are stated at cost less accumulated
recognised to the extent that it is probable that taxable *Estimated useful life of these assets based on usage and

expected life of the financial instrument to the net carrying depreciation and accumulated impairment loss, if any.
profit will be available against which the deductible replacement policy of such assets.
amount of the financial asset.
temporary differences, and the carry forward of unused Depreciation on building classified as investment property
The residual values, useful lives and methods of
3.10.2 Interest Income tax credits and unused tax losses can be utilised, except: has been provided on the straight-line method over a
depreciation of property, plant and equipment are
The EIR (and therefore, the amortised cost of the asset) is period of 60 years based on the Company’s estimate
• When the deferred tax asset relating to the deductible reviewed at each financial year end and adjusted
calculated by taking into account of fees and costs that of their useful lives taking into consideration technical
temporary difference arises from the initial recognition prospectively, if appropriate
are an integral part of the EIR. For credit-impaired financial factors, which is the same as the period prescribed in Sch II
of an asset or liability in a transaction that is not
assets interest income is calculated by applying the EIR to to the Companies Act 2013. Property plant and equipment is derecognised on disposal
a business combination and, at the time of the
the amortised cost of the credit-impaired financial assets or when no future economic benefits are expected from
transaction, affects neither the accounting profit nor Though the Company measures investment property using
(i.e. the gross carrying amount less the allowance for its use. Any gain or loss arising on derecognition of the
taxable profit or loss cost based measurement, the fair value of investment
expected credit losses). asset (calculated as the difference between the net
property is disclosed in the notes. Fair values are determined
•
In respect of deductible temporary differences disposal proceeds and the carrying amount of the asset)
3.11 Taxes based on an annual evaluation performed by an external
associated with investments in subsidiaries, associates is recognised in other income / expense in the statement
independent valuer applying valuation models.
3.11.1 Current tax and interests in joint ventures, deferred tax assets are of profit and loss in the year the asset is derecognised.
recognised only to the extent that it is probable that the Investment properties are derecognised either when they The date of disposal of an item of property, plant and
Current tax assets and liabilities for the current and
temporary differences will reverse in the foreseeable have been disposed of or when they are permanently equipment is the date the recipient obtains control of that
prior years are measured at the amount expected to
future and taxable profit will be available against withdrawn from use and no future economic benefit is item in accordance with the requirements for determining
be recovered from, or paid to, the taxation authorities.
which the temporary differences can be utilised expected from their disposal. The difference between the when a performance obligation is satisfied in Ind AS 115.
The tax rates and tax laws used to compute the amount
net disposal proceeds and the carrying amount of the
are those that are enacted, or substantively enacted, by The carrying amount of deferred tax assets is reviewed 3.14 Intangible assets
asset is recognised in the statement of profit and loss in
the reporting date in the countries where the Company at each reporting date and reduced to the extent that it
the period of derecognition. The Company’s other intangible assets mainly include the
operates and generates taxable income. is no longer probable that sufficient taxable profit will be
value of computer software.
available to allow all or part of the deferred tax asset to be 3.13 Property, plant and equipment
Current income tax relating to items recognised outside
utilised. Unrecognised deferred tax assets are re-assessed An intangible asset is recognised only when its cost can
profit or loss is recognised outside profit or loss (either Property plant and equipment is stated at cost excluding
at each reporting date and are recognised to the extent be measured reliably and it is probable that the expected
in other comprehensive income or in equity). Current the costs of day–to–day servicing, less accumulated
that it has become probable that future taxable profits will future economic benefits that are attributable to it will
tax items are recognised in correlation to the underlying depreciation and accumulated impairment in value.
allow the deferred tax asset to be recovered. flow to the Company.
transaction either in OCI or directly in equity. Management Changes in the expected useful life are accounted for
periodically evaluates positions taken in the tax returns Deferred tax assets and liabilities are measured at the tax by changing the amortisation period or methodology, Intangible assets acquired separately are measured on
with respect to situations in which applicable tax rates that are expected to apply in the year when the asset as appropriate, and treated as changes in accounting initial recognition at cost. Subsequently, they are carried at
regulations are subject to interpretation and establishes is realised or the liability is settled, based on tax rates (and estimates. cost less accumulated amortisation and impairment losses
provisions where appropriate. tax laws) that have been enacted or substantively enacted if any, and are amortised over their estimated useful life on
Depreciation is calculated using the straight–line method
at the reporting date. Deferred tax relating to items the straight-line basis over a 3-year period or the license
3.11.2 Deferred Tax to write down the cost of property and equipment to their
recognised outside profit or loss is recognised outside period whichever is lower.
Deferred tax is provided on temporary differences at residual values over their estimated useful lives. Land is not
profit or loss (either in other comprehensive income or in The carrying amount of the assets is reviewed at each
the reporting date between the tax bases of assets and depreciated.
equity). Deferred tax items are recognised in correlation Balance sheet date to ascertain impairment based on
liabilities and their carrying amounts for financial reporting to the underlying transaction either in OCI or directly in Useful life of assets as per Schedule II:
internal or external factors. Impairment is recognised, if
purposes. equity. Asset Description Estimated Useful Life the carrying value exceeds the higher of the net selling
Deferred tax liabilities are recognised for all taxable Deferred tax assets and deferred tax liabilities are offset if a Buildings 60 years
price of the assets and its value in use.
temporary differences, except: Computer Equipment 3 years
legally enforceable right exists to set off current tax assets Other Equipment 5 years 3.15 Impairment of non-financial assets
• In respect of taxable temporary differences associated against current tax liabilities and the deferred taxes relate Leasehold improvements Lease Period or 5 years,
with investments in subsidiaries, where the timing to the same taxable entity and the same taxation authority.
whichever is lower The Company assesses, at each reporting date, whether
119 120
there is an indication that an asset may be impaired. If recoverable amount. A previously recognised impairment based on actuarial valuation, as at the Balance Sheet date, and the Company’s best estimate of the number of equity
any indication exists, or when annual impairment testing loss is reversed only if there has been a change in the determined every year by an independent actuary using instruments that will ultimately vest. The statement of
for an asset is required, the Company estimates the asset’s assumptions used to determine the asset’s recoverable the Projected Unit Credit method. profit and loss expense or Credit for a period represents
recoverable amount. An asset’s recoverable amount is the amount since the last impairment loss was recognised. The the movement in cumulative expense recognised as at
Re-measurements, comprising of actuarial gains and
higher of an asset’s or cash-generating unit’s (CGU) fair reversal is limited so that the carrying amount of the asset the beginning and end of that period and is recognised in
losses, the effect of the asset ceiling, excluding amounts
value less costs of disposal and its value in use. Recoverable does not exceed its recoverable amount, nor exceed the employee benefits expense.
included in net interest on the net defined benefit liability
amount is determined for an individual asset, unless the carrying amount that would have been determined, net of The dilutive effect of outstanding options is reflected as
and the return on plan assets (excluding amounts included
asset does not generate cash inflows that are largely depreciation, had no impairment loss been recognised for additional share dilution in the computation of diluted
in net interest on the net defined benefit liability), are
independent of those from other assets or Group of assets. the asset in prior years. Such reversal is recognised in the earnings per share.
recognised immediately in the balance sheet with a
When the carrying amount of an asset or CGU exceeds its statement of profit or loss unless the asset is carried at a
corresponding debit or credit to retained earnings through If the options vests in instalments (i.e. the options vest
recoverable amount, the asset is considered impaired and revalued amount, in which case, the reversal is treated as a
OCI in the period in which they occur. Remeasurements pro rata over the service period), then each instalment
is written down to its recoverable amount. revaluation increase.
are not reclassified to profit or loss in subsequent periods. is treated as a separate share option grant because each
In assessing value in use, the estimated future cash flows 3.16 Retirement and other employee benefits instalment has a different vesting period.
Past service costs are recognised in profit or loss on the
are discounted to their present value using a pre-tax Retirement benefit in the form of provident fund is a earlier of: 3.18 Provisions
discount rate that reflects current market assessments of defined contribution scheme. The Company has no
the time value of money and the risks specific to the asset. • The date of the plan amendment or curtailment, and Provisions are recognised when the Company has a present
obligation, other than the contribution payable to the
In determining fair value less costs of disposal, recent •
The date that the Company recognises related obligation (legal or constructive) as a result of past events,
provident fund. The Company recognises contribution
market transactions are taken into account. If no such restructuring costs and it is probable that an outflow of resources embodying
payable to the provident fund scheme as an expense,
transactions can be identified, an appropriate valuation economic benefits will be required to settle the obligation,
when an employee renders the related service. If the Net interest is calculated by applying the discount rate
model is used. These calculations are corroborated by and a reliable estimate can be made of the amount of the
contribution payable to the scheme for service received to the net defined benefit liability or asset. The Company
valuation multiples, quoted share prices for publicly traded obligation. When the effect of the time value of money is
before the balance sheet date exceeds the contribution recognises the following changes in the net defined benefit
companies or other available fair value indicators. material, the Company determines the level of provision
already paid, the deficit payable to the scheme is obligation as an expense in the statement of profit and loss:
by discounting the expected cash flows at a pre-tax rate
The Company bases its impairment calculation on detailed recognised as a liability after deducting the contribution
• Service costs comprising current service costs, past- reflecting the current rates specific to the liability. The
budgets and forecast calculations, which are prepared already paid. If the contribution already paid exceeds the
service costs, gains and losses on curtailments and expense relating to any provision is presented in the
separately for each of the Company’s CGUs to which the contribution due for services received before the balance
non-routine settlements; and statement of profit and loss net of any reimbursement.
individual assets are allocated. These budgets and forecast sheet date, then excess is recognised as an asset to the
calculations generally cover a period of five years. For extent that the pre-payment will lead to, for example, a • Net interest expense or income 3.19 Dividends on ordinary shares
longer periods, a long-term growth rate is calculated and reduction in future payment or a cash refund. 3.17 Share Based Payments The Company recognises a liability to make cash distributions
applied to project future cash flows after the fifth year. To Employees’ State Insurance: The Company contributes to to equity holders when the distribution is authorised and the
Stock options are granted to the employees under the
estimate cash flow projections beyond periods covered Employees State Insurance Scheme and recognizes such distribution is no longer at the discretion of the Company.
stock option scheme. The costs of stock options granted
by the most recent budgets/forecasts, the Company contribution as an expense in the Statement of Profit As per the Companies Act, 2013 in India, a distribution
to the employees (equity-settled awards) of the Company
extrapolates cash flow projections in the budget using and Loss in the period when services are rendered by the is authorised when it is approved by the shareholders. A
are measured at the fair value of the equity instruments
a steady or declining growth rate for subsequent years, employees. corresponding amount is recognised directly in equity.
granted. For each stock option, the measurement of fair
unless an increasing rate can be justified. In any case, 3.20 Determination of Fair value
Superannuation: The Company contributes a sum value is performed on the grant date. The grant date is the
this growth rate does not exceed the long-term average
equivalent to 15% of eligible employees’ salary to a date on which the Company and the employees agree to The Company measures financial instruments, such as,
growth rate for the products, industries, or country or
Superannuation Fund administered by trustees and the stock option scheme. The fair value so determined is derivatives at fair value at each balance sheet date.
countries in which the entity operates, or for the market in
managed by Life Insurance Corporation of India (“LIC”). revised only if the stock option scheme is modified in a
which the asset is used. Fair value is the price that would be received to sell an
The Company has no liability for future Superannuation manner that is beneficial to the employees.
asset or paid to transfer a liability in an orderly transaction
Impairment losses of continuing operations, are recognised Fund benefits other than its contribution and recognizes
This cost is recognised, together with a corresponding between market participants at the measurement date.
in the statement of profit and loss. such contributions as an expense in the Statement of Profit
increase in share-based payment (SBP) reserves in equity, The fair value measurement is based on the presumption
For assets excluding goodwill, an assessment is made at and Loss in the period when services are rendered by the
over the period in which the performance and/or service that the transaction to sell the asset or transfer the liability
each reporting date to determine whether there is an employees.
conditions are fulfilled in employee benefits expense. takes place either:
indication that previously recognised impairment losses The Company makes contribution to a Gratuity Fund The cumulative expense recognised for equity-settled • In the principal market for the asset or liability, or
no longer exist or have decreased. If such indication administered by trustees and managed by LIC. The transactions at each reporting date until the vesting date •
In the absence of a principal market, in the most
exists, the Company estimates the asset’s or CGU’s Company accounts its liability for future gratuity benefits reflects the extent to which the vesting period has expired advantageous market for the asset or liability
121 122
The principal or the most advantageous market must be • Level 3 financial instruments - Those that include Step 5: Recognise revenue when (or as) the Company Foreign currency denominated monetary assets and
accessible by the Company. one or more unobservable input that is significant to satisfies a performance obligation. liabilities are translated at the functional currency spot
The fair value of an asset or a liability is measured using the measurement as whole. 3.21.1 Interest on overdue balances and Other Charges rates of exchange at the reporting date and exchange
gains and losses arising on settlement and restatement are
the assumptions that market participants would use For assets and liabilities that are recognised in the financial Overdue interest in respect of loans is recognised upon
recognized in the statement of profit and loss.
when pricing the asset or liability, assuming that market statements on a recurring basis, the Company determines realisation.
participants act in their economic best interest. whether transfers have occurred between levels in the Non-monetary items that are measured in terms of
3.21.2 Fee Income & Sale of Service
hierarchy by re-assessing categorisation (based on the historical cost in a foreign currency are translated using
A fair value measurement of a non-financial asset takes
lowest level input that is significant to the fair value a) Fee income from loans are recognised upon satisfaction the exchange rates at the dates of the initial transactions.
into account a market participant’s ability to generate
measurement as a whole) at the end of each reporting of following: Non-monetary items measured at fair value in a foreign
economic benefits by using the asset in its highest and
period. i) Completion of service currency are translated using the exchange rates at the
best use or by selling it to another market participant that
date when the fair value is determined. The gain or loss
would use the asset in its highest and best use. The Company evaluates the levelling at each reporting ii) and realisation of the fee income.
arising on translation of non-monetary items measured
The Company uses valuation techniques that are period on an instrument-by-instrument basis and b)
Servicing and collections fees on assignment are
at fair value is treated in line with the recognition of the
appropriate in the circumstances and for which sufficient reclassifies instruments when necessary based on the facts recognised upon completion of service.
gain or loss on the change in fair value of the item (i.e.,
data are available to measure fair value, maximising the at the end of the reporting period.
c)
Advertising income is recognised over the contract translation differences on items whose fair value gain or
use of relevant observable inputs and minimising the use 3.21 Recognition of Income period as and when related services are rendered. loss is recognized in OCI or profit or loss are also recognized
of unobservable inputs. in OCI or profit or loss, respectively).
Revenue (other than for those items to which Ind AS 109 3.22 Dividend Income
In order to show how fair values have been derived, Financial Instruments are applicable) is measured at fair 3.25 Earnings Per Share
Dividend income (including from FVOCI investments)
financial instruments are classified based on a hierarchy of value of the consideration received or receivable. Ind AS 115
is recognised when the Company’s right to receive Basic Earnings Per Share is calculated by dividing the
valuation techniques, as summarised below: Revenue from contracts with customers outlines a single
the payment is established and it is probable that the net profit or loss for the period attributable to equity
• Level 1 financial instruments - Those where the inputs comprehensive model of accounting for revenue arising
economic benefits associated with the dividend will flow shareholders by the weighted average number of equity
used in the valuation are unadjusted quoted prices from contracts with customers and supersedes current
to the entity and the amount of the dividend can be shares outstanding during the period.
from active markets for identical assets or liabilities revenue recognition guidance found within Ind ASs. measured reliably. This is generally when the shareholders
The weighted average number of equity shares outstanding
that the Company has access to at the measurement The Company recognises revenue from contracts with approve the dividend.
during the period and for all periods presented is adjusted
date. The Company considers markets as active only customers based on a five-step model as set out in Ind 115: 3.23 Input Tax credit (Service tax/ Goods and Service for events, such as bonus shares, other than the conversion
if there are sufficient trading activities with regards Tax)
Step 1: Identify contract(s) with a customer: A contract is of potential equity shares, that have changed the number
to the volume and liquidity of the identical assets or
defined as an agreement between two or more parties that Input Tax Credit is accounted for in the books in the period of equity shares outstanding, without a corresponding
liabilities and when there are binding and exercisable
creates enforceable rights and obligations and sets out the when the underlying service / supply received is accounted change in resources. For the purpose of calculating diluted
price quotes available on the balance sheet date.
criteria for every contract that must be met. to the extent permitted as per the applicable regulatory earnings per share, the net profit or loss for the period
Level 2 financial instruments - Those where the
• laws and when there is no uncertainty in availing / utilising attributable to equity shareholders and the weighted
Step 2: Identify performance obligations in the contract: A
inputs that are used for valuation and are significant, the same. The ineligible input credit is charged off to the average number of shares outstanding during the period
performance obligation is a promise in a contract with a
are derived from directly or indirectly observable respective expense or capitalised as part of asset cost as is adjusted for the effects of all dilutive potential equity
customer to transfer a good or service to the customer.
market data available over the entire period of the applicable. shares.
Step 3: Determine the transaction price: The transaction
instrument’s life. Such inputs include quoted prices
price is the amount of consideration to which the Company 3.24 Foreign Currency transactions 3.26 Segment Information
for similar assets or liabilities in active markets, quoted
expects to be entitled in exchange for transferring promised The Company’s financial statements are presented in Indian The accounting policies adopted for Segment reporting
prices for identical instruments in inactive markets
goods or services to a customer, excluding amounts Rupees (INR) which is also the Company’s functional currency. are in line with the accounting policies of the Company
and observable inputs other than quoted prices such
collected on behalf of third parties. Transactions in foreign currencies are initially recorded with the following additional policies:
as interest rates and yield curves, implied volatilities,
and credit spreads. In addition, adjustments may be Step 4: Allocate the transaction price to the performance by the Company at their respective functional currency Revenue and expenses have been identified to segments
required for the condition or location of the asset obligations in the contract: For a contract that has more spot rates at the date the transaction first qualifies for on the basis of their relationship to the operating activities
or the extent to which it relates to items that are than one performance obligation, the Company allocates recognition. of the Segment. Revenue and expenses, which relate to the
comparable to the valued instrument. However, if the transaction price to each performance obligation in Income and expenses in foreign currencies are initially enterprise as a whole and are not allocable to Segments
such adjustments are based on unobservable inputs an amount that depicts the amount of consideration to recorded by the Company at the exchange rates prevailing on a reasonable basis have been included under “Un-
which are significant to the entire measurement, the which the Company expects to be entitled in exchange for on the date of the transaction. allocable”.
Company will classify the instruments as Level 3. satisfying each performance obligation.
123 124
Assets and liabilities have been identified to segments on short-term and low value leases, the Company recognises recognition. The Company uses a provision matrix to securitisation transactions entered by the Company does
the basis of their relationship to the operating activities the lease payments as an operating expense on a straight- determine impairment loss allowance on portfolio of not qualify de-recognition since substantial risk and
of the Segment. Assets and liabilities, which relate to the line basis over the term of the lease. its trade receivables. The provision matrix is based on its rewards of the ownership has not been transferred. The
enterprise as a whole and are not allocable to Segments historically observed default rates over the expected life of transactions are treated as financing arrangements and
Certain lease arrangements include the options to extend
on a reasonable basis have been included under “Un- the trade receivables and is adjusted for forward-looking the sale consideration received is treated as borrowings.
or terminate the lease before the end of the lease term.
allocable”. estimates. At every reporting date, the historical observed
RTU assets and lease liabilities includes these options iii Fair value of financial instruments
default rates are updated for changes in the forward-
3.27 Equity Investment in Subsidiaries and associates when it is reasonably certain that they will be exercised. The fair value of financial instruments is the price that
looking estimates.
Investment in Subsidiaries and Joint Ventures are carried
Right-to-Use assets are depreciated from the would be received to sell an asset or paid to transfer a
4A.
Significant accounting judgements, liability in an orderly transaction in the principal (or most
at Cost in the Separate Financial Statements as permitted commencement date on a straight-line basis over the
estimates and assumptions advantageous) market at the measurement date under
under Ind AS 27. shorter of the lease term. Right to use assets are evaluated
for recoverability whenever events or changes in the The preparation of the Company’s financial statements current market conditions (i.e., an exit price) regardless
3.28 Cash Flow Statement
circumstances indicate that their carrying amounts may requires management to make judgements, estimates and of whether that price is directly observable or estimated
Cash flows are reported using the indirect method, where assumptions that affect the reported amount of revenues, using another valuation technique. When the fair values
not be recoverable.
by profit / (loss) before tax is adjusted for the effects of expenses, assets and liabilities, and the accompanying of financial assets and financial liabilities recorded in the
The lease liability is initially measured at amortised cost
transactions of non-cash nature and any deferrals or disclosures, as well as the disclosure of contingent balance sheet cannot be derived from active markets, they
at the present value of the future lease payments. The
accruals of past or future cash receipts or payments liabilities. Uncertainty about these assumptions and are determined using a variety of valuation techniques
lease payments are discounted using the incremental
For the purpose of the Statement of Cash Flows, cash and estimates could result in outcomes that require a material that include the use of valuation models. The inputs to
borrowing rates in the country of domicile of the leases.
cash equivalents as defined above, net of outstanding adjustment to the carrying amount of assets or liabilities these models are taken from observable markets where
Lease liabilities are remeasured with a corresponding
bank overdrafts as they are considered an integral part of affected in future period possible, but where this is not feasible, estimation is
adjustment to the related right to use asset if the Company
cash management of the Company. In the process of applying the Company’s accounting required in establishing fair values. Judgements and
changes its assessment if the whether it will exercise an
policies, management has made the following estimates include considerations of liquidity and model
3.29 Cash and Cash equivalents extension or a termination option.
judgements/estimates, which have a significant risk of inputs related to items such as credit risk (both own and
Cash and cash equivalent in the balance sheet comprise The Company has opted to presented the RTU as a part counterparty), funding value adjustments, correlation and
causing a material adjustment to the carrying amounts of
cash at banks and on hand and short-term deposits with of the block of asset to which the lease pertains to and volatility. For further details about determination of fair
assets and liabilities within the next financial year.
an original maturity of three months or less, which are consequently, the RTU asset has been presented as a part value please see Fair value note in Accounting policy
subject to an insignificant risk of changes in value. of Property, plant and equipment under the Buildings i Business Model Assessment
iv Impairment of financial asset
3.30 Leases block, whereas the lease liability is presented under Other The Company from time to time enters into direct bilateral
Financial Liabilities in the Balance Sheet. Lease payments assignment deals, which qualify for de-recognition under The measurement of impairment losses across all categories
The Company’s lease asset consists of leases for buildings. of financial assets requires judgement, in particular, the
made by the Company are classified as financing cash Ind AS 109. Accordingly, the assessment of the Company’s
The Company assesses whether a contract contains a estimation of the amount and timing of future cash flows
flows. business model for managing its financial assets becomes
lease, at inception of a contract. A contract is, or contains, and collateral values when determining impairment losses
a critical judgment. Refer Note 3.2.1.1 for related details.
a lease If the contract conveys the right to control the use The Company applies the short-term lease recognition
and the assessment of a significant increase in credit risk.
of an identified asset for a period of time in exchange for exemption to its short-term leases of Buildings (i.e., ii De-recognition of Financial instruments
These estimates are driven by a number of factors, changes
consideration. To assess whether a contract conveys the those leases that have a lease term of 12 months or less The Company enters into securitisation transactions where in which can result in different levels of allowances.
right to control the use of an identified asset, the Company from the commencement date and do not contain a financial assets are transferred to a structured entity for a
purchase option). Lease payments on short-term leases The Company’s ECL calculations are outputs of complex
assesses whether: (i) the contract involves the use of an consideration. The financial assets transferred qualify for
are recognised as expense on a straight-line basis over the models with a number of underlying assumptions
identified asset (ii) the Company has substantially all of the derecognition only when substantial risk and rewards are
lease term. regarding the choice of variable inputs and their
economic benefits from the use of the asset through the transferred.
interdependencies. Elements of the ECL models that are
period of the lease and (iii) the Company has the right to 3.31 Trade receivables This assessment includes judgements reflecting all
considered accounting estimates include:
direct the use of the asset. The Company follows ‘simplified approach’ for recognition relevant evidence including the past performance of the
• The Company’s criteria for assessing if there has been a
At the date of commencement of the lease, the Company of impairment loss allowance on trade receivables. The assets transferred and credit risk that the Company has
significant increase in credit risk and so allowances for
recognises a right-to-use asset (“RTU”) and a corresponding application of simplified approach does not require been exposed to. Based on this assessment, the Company
financial assets should be measured on a LTECL basis
lease liability for all lease arrangements in which it is a the Company to track changes in credit risk. Rather, believes that the credit enhancement provided pursuant
to the transfer of financial assets under securitisation are and the qualitative assessment
lessee, except for leases with a term of twelve months or it recognises impairment loss allowance based on
less (short-term leases) and low value leases. For these lifetime ECLs at each reporting date, right from its initial higher than the loss incurred on the similar portfolios • The segmentation of financial assets when their ECL is
of the Company hence it has been concluded that assessed on a collective basis
125 126
• Development of ECL models, including the various account a number of factors including legal advice, the Leases previously classified as Finance Leases • Corresponding lease liabilities of ` 12,199 lakhs were
formulas and the choice of inputs stage of the matter and historical evidence from similar The Company did not change the initial carrying amounts recognised.
• Determination of temporary adjustments as qualitative incidents. Significant judgement is required to conclude of recognised assets and liabilities at the date of initial Appendix C to Ind AS 12 Uncertainty over Income Tax

adjustment or overlays based on broad range of on these estimates. application for leases previously classified as finance leases Treatment
forward looking information as economic inputs 4B
New Accounting standards issued and (i.e., the right-of-use assets and lease liabilities equal the The appendix addresses the accounting for income taxes
The Company has considered the impact of Covid-19 effective from April 1, 2019 lease assets and liabilities recognised under Ind AS 17). The when tax treatments involve uncertainty that affects the
requirements of Ind AS 116 were applied to these leases application of Ind AS 12 Income Taxes. It does not apply
pandemic and the moratorium given to borrowers New and amended standards and interpretations Ind

from 1st April 2019. to taxes or levies outside the scope of Ind AS 12, nor does
pursuant to the Covid-19 regulatory package announced AS 116
by Reserve Bank of India, in determination of impairment Leases previously accounted for as operating leases it specifically include requirements relating to interest and
Ind AS 116 supersedes Ind AS 17 Leases, including
allowance for the year. Also refer note 2.3. The Company recognised right-of-use assets and lease penalties associated with uncertain tax treatments. The
Appendix A of Ind AS 17 - Operating Leases-Incentives,
liabilities for those leases previously classified as operating Appendix specifically addresses the following:
It has been the Company’s policy to regularly review its Appendix B of Ind AS 17 - Evaluating the Substance of
models in the context of actual loss experience and adjust Transactions Involving the Legal Form of a Lease and leases, except for short-term leases. The Right-of-use assets • Whether an entity considers uncertain tax treatments
when necessary. Appendix C of Ind AS 17 - Determining whether an were recognised based on the amount equal to the lease separately
Arrangement contains a Lease. The standard sets out the liabilities, adjusted for any related prepaid and accrued •
The assumptions an entity makes about the
v Leases
principles for the recognition, measurement, presentation lease payments previously recognised. Lease liabilities were examination of tax treatments by taxation authorities
a.
Determining the lease term of contracts with recognised based on the present value of the remaining
and disclosure of leases and requires lessees to recognise • How an entity determines taxable profit (tax loss), tax
renewal and termination options – Company as lease payments, discounted using the incremental
most leases on the Balance Sheet. bases, unused tax losses, unused tax credits and tax
lessee borrowing rate at the date of initial application.
Lessor accounting under Ind AS 116 remains unchanged rates
The Company determines the lease term as the non- The Company also applied the available practical
from Ind AS 17. Lessors will continue to classify leases as •
How an entity considers changes in facts and
cancellable term of the lease, together with any periods expedients wherein it:
either operating or finance leases using similar principles circumstances
covered by an option to extend the lease if it is reasonably
as in Ind AS 17. Therefore, Ind AS 116 did not have an • Used a single discount rate to a portfolio of leases with
certain to be exercised, or any periods covered by an The Company determines whether to consider each
impact for leases where the Company is the lessor. reasonably similar characteristics
option to terminate the lease, if it is reasonably certain uncertain tax treatment separately or together with
not to be exercised. The Company applies judgement The Company adopted Ind AS 116 using the modified • Relied on its assessment of whether leases are onerous one or more other uncertain tax treatments and uses
in evaluating whether it is reasonably certain whether retrospective method of adoption in accordance with Para immediately before the date of initial application the approach that better predicts the resolution of the
or not to exercise the option to renew or terminate the C8 (c) (ii) to Ind AS 116 with the date of initial application • Applied the short-term leases exemptions to leases uncertainty. The Company applies significant judgement in
lease. That is, it considers all relevant factors that create an being 1st April 2019. Under this method, the standard with lease term that ends within 12 months of the date identifying uncertainties over income tax treatments. Since
economic incentive for it to exercise either the renewal or is applied retrospectively with the cumulative effect of of initial application the Company operates in a multinational environment,
termination. initially applying the standard recognised at the date it assessed whether the Appendix had an impact on its
• Excluded the initial direct costs from the measurement
b. Estimating the incremental borrowing rate of initial application. The Company elected to use the financial statements.
of the right-of-use asset at the date of initial application.
transition practical expedient to not reassess whether a Upon adoption of the Appendix C to Ind AS 12, the
The Company cannot readily determine the interest rate • Used hindsight in determining the lease term where
contract is or contains a lease at 1st April 2019. Instead, Company considered whether it has any uncertain tax
implicit in the lease, therefore, it uses its incremental the contract contained options to extend or terminate
the Company applied the standard only to contracts that positions. The Company determined, based on its tax
borrowing rate (IBR) to measure lease liabilities. The IBR is the lease
were previously identified as leases applying Ind AS 17 and compliance, that it is probable that its tax treatments will
the rate of interest that the Company would have to pay to
Appendix C to Ind AS 17 at the date of initial application Based on the above, as at 1st April 2019: be accepted by the taxation authorities. The Appendix did
for its borrowings.
The Company has lease contracts for various items of • Right-of-use assets of ` 11,370 lakhs were recognised not have an impact on the Financial Statements of the
vi Provisions and other contingent liabilities
Building. Before the adoption of Ind AS 116, the Company and presented separately in the Balance Sheet. Company.
When the Company can reliably measure the outflow of classified each of its leases (as lessee) at the inception date as
economic benefits in relation to a specific case and considers either a finance lease or an operating lease. Upon adoption
such outflows to be probable, the Company records a of Ind AS 116, the Company applied a single recognition
provision against the case. Where the probability of outflow and measurement approach for all leases except for short-
is considered to be remote, or probable, but a reliable term leases. Refer to Note 3.30 - Leases for the accounting
estimate cannot be made, a contingent liability is disclosed. policy beginning 1st April 2019. The standard provides
Given the subjectivity and uncertainty of determining the specific transition requirements and practical expedients,
probability and amount of losses, the Company takes into which have been applied by the Company.
127 128
Particulars As at As at Particulars As at As at
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Note : 5 CASH AND CASH EQUIVALENTS Note : 8 RECEIVABLES (Unsecured)
Cash on hand 329 4,996 (i) Trade Receivables
Balances with banks Considered Good* 661 441
- In Current Accounts 61,689 34,911 Subtotal (i) 661 441
- In Deposit Accounts - Original maturity of 3 months or less 2,84,029 2,66,662 (ii) Other Receivables
Cheques, drafts on hand 141 7,324 Considered Good* 5,213 3,908
Total 3,46,188 3,13,893 Subtotal (ii) 5,213 3,908
Total (i)+(ii) 5,874 4,349
` in lakhs
Particulars As at As at * Includes dues from related parties.
31.03.2020 31.03.2019 No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person.
Note : 6 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
` in lakhs
- In Deposit Accounts - Original maturity more than 3 months 3,11,805 1,471
Particulars As at As at
- In earmarked accounts 31.03.2020 31.03.2019
- In Unpaid Dividend Accounts 73 68 Note : 9 LOANS (At amortised cost)
- Deposits with Banks as collateral towards securitisation loan 37,836 52,045 (A)
- Other deposit Account on amalgamation of Cholamandalam Factoring Limited 8 8 (i) Bills Discounted 8,598 8,860
Total 3,49,722 53,592 (ii) Term loans 56,83,972 53,46,438
Total (A) - Gross 56,92,570 53,55,298
Less: Impairment Allowance for (i) & (ii) (1,52,297) (93,071)
` in lakhs Total (A) - Net 55,40,273 52,62,227
As at 31.03.2020 As at 31.03.2019 (B)
Particulars Notional Fair Fair Notional Fair Fair
(i) Secured 56,63,416 53,03,087
amounts Value Value amounts Value Value
-Assets -Liabilites -Assets -Liabilites (ii) Unsecured 29,154 52,211
Note : 7 DERIVATIVE FINANCIAL Total (B) - Gross 56,92,570 53,55,298
INSTRUMENTS Less: Impairment Allowance (1,52,297) (93,071)
Part I Total (B) - Net 55,40,273 52,62,227
(i)Other derivatives - Cross Currency Interest Rate Swap 2,34,373 11,420 - 2,26,150 8,869 841
All loans are in India granted to individuals or entities other than public sector
Total Derivative financial Instruments 2,34,373 11,420 - 2,26,150 8,869 841
Secured indicates loans secured, wholly or partly, by way of hypothecation of automobile assets and / or pledge of securities and / or
Part II equitable mortgage of property and / or advances generated out of loans.
Included in above (Part I) are derivatives held for
Term loans includes unsecured short term loans to a subsidiary and associate. These loans have been classified under Stage 1 Category at
hedging and risk management purposes as follows: the various reporting periods and related impairment provision as per the Company's accounting policy has been created. The details of
(i)Cash flow hedging: the same are disclosed below:
Others - Cross currency interest rate swap 2,34,373 11,420 - 2,26,150 8,869 841
Total Derivative financial Instruments 2,34,373 11,420 - 2,26,150 8,869 841
31.03.2020 31.03.2019
Loan - Outstanding Value
The company has a Board approved policy for entering into derivative transactions. Derivative transaction comprises of Currency and Cholamandalam Securities Limited 700 1,150
Interest Rate Swap. The company undertakes such transactions for hedging borrowings. The Asset Liability Management Committee and 340
White Data System India Private Limited 340
Business Committee periodically monitors and reviews the risks involved. Impairment Allowance
Cholamandalam Securities Limited 1 1
White Data System India Private Limited - -
129 130
Note : 9.1 LOANS ` in lakhs
An analysis of changes in the gross carrying amount and corresponding ECL allowances in relations to loans ` in lakhs Particulars As at As at
Gross Carrying amount Impairment allowance 31.03.2020 31.03.2019
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Note : 10 INVESTMENTS
Investment in Equity Instruments*
Bills discounted
a) Subsidiaries at cost
Opening as on April 1, 2019 5,367 40 3,453 8,860 13 3 3,157 3,173
Cholamandalam Home Finance Limited 4,240 4,240
New assets originated / Increase 5,123 42 250 5,415 31 4 100 135
(Formerly known as Cholamandalam Distribution Services Limited)
in existing assets (Net)
Exposure de-recognised / matured / repaid (5,349) (39) (289) (5,677) (13) (3) (230) (246) 42,400,000 Equity shares of ₹ 10 each fully paid up
Transfer to Stage 3 - - - - - - - - Cholamandalam Securities Limited 2,250 2,250
Impact on account of exposures transferred - - - - - - - - 22,500,014 Equity shares of ₹ 10 each fully paid up
during the period between stages b) Associate at cost
Impact of changes on items within - - - - - - 146 146 White Data System India Private Limited 800 800
the same stage 1,275,917 Equity shares of ₹ 10 each fully paid up
Closing as on March 31, 2020 5,141 43 3,414 8,598 31 4 3,173 3,208
(Subsidiary upto September 2018 and Associate from October 2018)
Term loans
c) Others - Unquoted - FVOCI **
Opening as on April 1, 2019 49,98,423 2,07,617 1,40,398 53,46,438 18,690 19,724 51,484 89,898
Amaravathi Sri Venkatesa Paper Mills Limited - -
New assets originated / Increase 25,49,193 25,834 9,514 25,84,541 28,640 3,982 4,031 36,653
in existing assets (Net) 293,272 Equity shares of ₹ 10 each fully paid up#
Exposure de-recognised / matured / repaid (20,60,871) (1,13,388) (48,497) (22,22,756) (13,214) (5,073) (7,497) (25,784) Saraswat Co-operative Bank Limited 1,000 Equity shares of ₹ 10 each fully paid up# - -
Transfer to Stage 1 59,640 (55,972) (3,668) - 6,161 (5,184) (977) - The Shamrao Vithal Co-operative Bank Limited 1,000 Equity shares of ₹ 25 each fully paid up# - -
Transfer to Stage 2 (1,84,591) 1,87,214 (2,623) - (811) 1,491 (680) - Chola Insurance Services Private Ltd.19,133 Equity shares of ₹10 each fully paid up 2 2
Transfer to Stage 3 (76,058) (42,931) 1,18,989 - (348) (3,981) 4,329 - Chennai Willingdon Corporate Foundation 5 shares of ₹ 10 each : Cost ₹ 50 only# - -
Impact on account of exposures transferred 139 682 2,562 3,383 232 14,604 32,867 47,703
during the period between stages Total 7,292 7,292
Impact of changes on items within - - 4,489 4,489 - - 8,679 8,679
*Investments are made in India
the same stage
Write off (16,842) (7,034) (8,247) (32,123) (259) (2,221) (5,580) (8,060) **The Company has designated certain unquoted equity instruments as FVOCI on the basis that these are not held for trading.
Closing as on March 31, 2020 52,69,033 2,02,022 2,12,917 56,83,972 39,091 23,342 86,656 1,49,089 # represents amount less than Rs 1 lakh.
Bills Discounted
New assets originated / Increase 5,352 39 892 6,283 13 3 596 612 ` in lakhs
in existing assets (Net)
Exposure de-recognised / matured / repaid (10,005) (780) (147) (10,932) (25) (57) (41) (123) 31.03.2020 31.03.2019
Transfer to Stage 3 (296) (69) 365 - (1) (5) 6 -
Note : 11 OTHER FINANCIAL ASSETS
Impact on account of exposures transferred - - - - - - 329 329
Unsecured - considered good
during the year between stages (net)
Impact of changes on items within the - - - - - - 997 997 At amortised cost
same stage (net) Security deposits 2,409 1,905
Closing as on March 31, 2019 5,367 40 3,453 8,860 13 3 3,157 3,173 Other advances (Refer Note 37) 3,136 2,545
Term loans Interest only strip receivable 35,782 9,062
Opening as on April 1, 2018 39,53,537 1,95,508 1,45,283 42,94,328 17,009 18,436 49,432 84,877 Total 41,327 13,512
New assets originated / Increase in 27,40,754 28,154 5,473 27,74,381 5,732 5,997 1,890 13,619
existing assets (Net)
Exposure de-recognised / matured / repaid (15,26,858) (1,13,192) (55,852) (16,95,902) (1,841) (3,955) (6,074) (11,870)
Transfer to Stage 1 56,448 (49,871) (6,577) - 6,206 (4,642) (1,564) -
Transfer to Stage 2 (1,71,530) 1,78,274 (6,744) - 2,298 (850) (1,448) -
Transfer to Stage 3 (44,907) (25,631) 70,538 - (250) (2,481) 2,731 -
Impact on account of exposures transferred 3 200 1,825 2,028 (6,068) 10,596 14,921 19,449
during the year between stages
Impact of changes on items within - - 4,144 4,144 (3,667) (1,457) 2,885 (2,239)
the same stage
Write off (9,024) (5,825) (17,692) (32,541) (729) (1,920) (11,289) (13,938)
Closing as on March 31, 2019 49,98,423 2,07,617 1,40,398 53,46,438 18,690 19,724 51,484 89,898
ECL across stages have been computed on collective basis.
The Company uses Days past due of the customer to determine the credit quality of loans
131 132
` in lakhs
` in lakhs Particulars Total
31.03.2020 31.03.2020 Note : 13 INVESTMENT PROPERTY
Note : 12 DEFERRED TAX Gross carrying amount as at April 1, 2018 5
Deferred Tax Assets Additions 9
Impairment allowance for financial instruments 37,741 32,430 Disposals -
Provision for Contingencies and Undrawn commitments 999 1,341 Gross carrying amount as at March 31, 2019 14
Provision for Compensated Absences and Gratuity 1,285 1,251 Additions -
Impact of Effective interest rate adjustment on Financial Assets 7,815 9,761 Disposals -
Contract Liability as per IND AS 115 413 995 Gross carrying amount as at March 31, 2020 14
Depreciation 919 637 Accumulated depreciation and impairment
Items recognised in OCI 2,762 - Balance as at April 01, 2018
Others 573 367 Depreciation for the year -
(A) 52,507 46,782 Depreciation on disposals -
Deferred Tax Liability Balance as at March 31, 2019 -
Impact of Effective interest rate adjustment on Financial Liabilities 424 856 Depreciation for the year -
Items recognised in OCI - 626 Depreciation on disposals -
(B) 424 1,482 Balance as at March 31, 2020 -
Net Deferred Tax Assets (A) - (B) 52,083 45,300 Net Carrying amount
As at March 31, 2019 14
As at March 31, 2020 14
` in lakhs Useful Life of the asset (In Years) 60
As at 31.03.2020 As at 31.03.2019 Method of depreciation Straight line method

Particulars Income OCI Income OCI
Statement Statement The Company's investment property consists of 4 properties and has let out one property as at March 31, 2020.
Deferred Tax Assets * Addition represents transfer from Property, plant and equipments.
** represents amount less than ` 100,000
Impairment allowance for financial instruments (5,311) - (3,731) -
Provision for Contingencies and Undrawn commitments 342 - - -
Provision for Compensated Absences and Gratuity (34) - (348) -
i) Income earned and expense incurred in connection with investment property ` in lakhs
Impact of Effective interest rate adjustment on Financial Assets 1,946 - (3,554) -
Contract Liability as per IND AS 115 582 - - - Particulars Year ended Year ended
31.03.2020 31.03.2019
Depreciation (282) - 107 -
Rental Income 4 4
Others (207) - (91) - Direct Operating expense from property that generated rental income 1 1
(A) (2,964) - (7,617) - Direct Operating expense from property that did not generate the rental income - -
Deferred Tax Liability
Difference between Depreciation as per Books of Account and
the Income Tax Act, 1961. ii) Contractual obligations
There are no contractual obligations to purchase, construct or develop investment property.
Impact of Effective interest rate adjustment on Financial Liabilities 432 - 328 -
Re-measurement gains / (losses) on defined benefit plans (net) - 125 - 237 iii) Leasing Arrangements
Gain on de-recognition of financial assets - - 1,404 - Certain investment properties are leased out to tenants under cancellable operating lease.
` in lakhs
Cashflow Hedge reserve - 3,261 - (456)
As at As at
(B) 432 3,386 1,732 (219) 31.03.2020 31.03.2019
Net deferred tax charge / (reversal) (A) - (B) (3,396) (3,386) (9,349) 219 iv) Fair Value
Investment Property 299 287
Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on 25th November 2019, the company had exercised the option permitted
u/s 115BAA of the Income Tax Act, 1961 ,to compute income tax at revised rate (i.e.25.17%) from current financial year and accordingly, had
re-measured deferred tax as at April 1, 2019. The re-measurement has resulted in additional tax expense of Rs 12,845 lakhs in the statement of
profit and loss and additional tax benefit of Rs 172 lakhs in other Comprehensive income for the year.
133 134
Particulars Valuation Significant Range Sensitivity of Fair value Sensitivity ` in lakhs

technique unobservable (Weighted avg) the input to ` in lakhs ` in lakhs Particulars Computer Software
inputs fair value Note : 15 INTANGIBLE ASSETS
Note : 13 INVESTMENT PROPERTY (Contd.) Gross carrying amount as at April 1, 2018 3,406
v) Sensitivity analysis Additions 1,676
Investment Property Professional Price per ` 7,000 - 13,000 5% 299 15 Disposals -
As at March 31, 2020 valuer Sq. feet per Sq. feet Gross carrying amount as at March 31, 2019 5,082
Additions 1,340
Investment Property Professional Price per ` 7,000 - 13,000
5% 287 14 Disposals 202
As at March 31, 2019 valuer Sq. feet per Sq. feet Gross carrying amount as at March 31, 2020 6,220
Accumulated Amortization and impairment
` in lakhs Balance as at April 1, 2018 1,336
Amortization for the year 1,770
Particulars Freehold Computer Office Furniture Leasehold Vehicles Buildings Total
Land Equipment Equipment and Fixtures Improvements (Refer Note below) Amortization on disposals -
Own Right of Balance as at March 31, 2019 3,106
Assets Use Asset Amortization for the period 1,571
Note : 14 PROPERTY, PLANT AND EQUIPMENT Amortization on disposals 204
Balance as at March 31, 2020 4,473
Gross carrying amount 3,956 3,869 1,618 1,381 2,940 1,250 2,575 - 17,589 Net Carrying amount
as at April 1, 2018 As at March 31, 2019 1,976
Additions - 1,911 531 445 734 583 - - 4,204 As at March 31, 2020 1,747
Disposals - 4 18 3 19 238 9 - 291 Useful Life of the asset (In Years) 3
Gross carrying amount 3,956 5,776 2,131 1,823 3,655 1,595 2,566 - 21,502 Method of depreciation Straight line method
as at March 31, 2019
Additions - 2,406 709 655 1,280 572 137 14,860 20,619 ` in lakhs
Disposals - 8 56 85 40 194 398 - 781
31.03.2020 31.03.2019
Gross carrying amount 3,956 8,174 2,784 2,393 4,895 1,973 2,305 14,860 41,340
Note : 16 OTHER NON FINANCIAL ASSETS
as at March 31, 2020
Prepaid expenses 1,422 1,146
Accumulated depreciation / amortisation and impairment Capital advances 109 225
Balance as at April 1, 2018 - 1,455 475 659 727 220 48 - 3,584 Total 1,531 1,371
Depreciation for the year - 1,753 452 458 746 321 48 - 3,778
Depreciation on disposals - 2 9 2 6 127 - - 146 ` in lakhs
Balance as at March 31, 2019 - 3,206 918 1,115 1,467 414 96 - 7,216 Particulars As at As at
Depreciation for the period - 2,013 555 635 998 367 425 4,190 9,183 31.03.2020 31.03.2019
Depreciation on disposals - 8 42 67 30 113 398 - 658 Note : 17 DEBT SECURITIES (at amortised cost)
Balance as at March 31, 2020 - 5,211 1,431 1,683 2,435 668 123 4,190 15,741 Redeemable Non-Convertible Debentures
Net Carrying amount Medium-Term - Secured 5,74,418 10,54,445
As at March 31, 2019 3,956 2,570 1,213 708 2,188 1,181 2,470 - 14,286 Commercial Papers - Unsecured 1,58,265 3,63,986
As at March 31, 2020 3,956 2,963 1,353 710 2,460 1,305 2,182 10,670 25,599 Total 7,32,683 14,18,431
Useful Life of the asset (In Years) 3 5 5 5 5 60 upto 5
Method of depreciation Straight-line method
Note
1. Details of Immovable properties of land and buildings (Owned Assets), whose title deeds have been pledged in favour of Trustees for the benefit
of debenture holders as security, has been explained in Note 17.1
2. Disposal in Buildings represents transfer to Investment property.
3. The Company has elected to include ROU assets pertaining to lease of buildings as part of the Property, plant and equipment as permitted under
paragraph 47 of Ind AS 116.
135 136
Note : 17 DEBT SECURITIES (at amortised cost) (Contd.) 17.2 Details of Debentures - Contractual principal repayment value (Contd.)
All debt securities in india (ii) Secured Redeemable Non-Convertible Debentures - Redeemable at premium - No put call option
17.1 Security
(i) Redeemable Non-Convertible Debentures - Medium-term is secured by way of specific charge on assets under hypothecation No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹
relating to Vehicle Finance, Home Equity, Bills discounted and other loans and pari passu charge on immovable property which are redemption price ₹
31.03.2020 31.03.2019
owned assets of the Company situated at Chennai.
₹ in lakhs ₹ in lakhs
(ii) The Company has not defaulted in the repayment of dues to its lenders.
500 10,00,000 5,000 - Jan-23 12,54,470 2,54,470
1100 10,00,000 11,000 11,000 May-21 12,94,211 2,94,211
17.2 Details of Debentures - Contractual principal repayment value 1000 10,00,000 10,000 10,000 Mar-21 12,76,583 2,76,583
(i) Secured Redeemable Non-Convertible Debentures - Redeemable at par - No put call option 1150 10,00,000 11,500 11,500 Dec-20 11,92,230 1,92,230
No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest % 2050 10,00,000 20,500 20,500 May-20 12,63,916 2,63,916
redemption 190 10,00,000 1,900 1,900 Apr-20 12,56,100 2,56,100
31.03.2020 31.03.2019 500 10,00,000 5,000 5,000 Apr-20 13,54,976 3,54,976
₹ in lakhs ₹ in lakhs 800 10,00,000 8,000 8,000 Apr-20 12,74,682 2,74,682
250 10,00,000 2,500 2,500 Nov-26 8.55 750 10,00,000 - 7,500 Sep-19 12,66,148 2,66,148
1,500 10,00,000 15,000 15,000 Apr-24 8.62 80 10,00,000 - 800 Jul-19 12,98,729 2,98,729
3,523 10,00,000 35,230 35,230 Sep-23 8.80 500 10,00,000 - 5,000 Jul-19 13,63,101 3,63,101
80 10,00,000 - 800 Apr-19 13,08,150 3,08,150
1,350 10,00,000 13,500 - Feb-23 7.41
250 10,00,000 - 2,500 Apr-19 13,13,730 3,13,730
1,000 10,00,000 10,000 - Dec-22 7.98
72,900 84,500
1,500 10,00,000 15,000 15,000 Nov-22 8.00
3,523 10,00,000 35,230 35,230 Sep-22 8.70
1,050 10,00,000 10,500 10,500 Mar-22 8.35 to 9.06
3,523 10,00,000 35,230 35,230 Sep-21 8.45 (iii) Secured Redeemable Non-Convertible Debentures - Redeemable at par - with Put option
1,250 10,00,000 12,500 - Aug-21 8 No. of Debentures Face Value ₹ Balance as at Due date of Put option Rate of
2,550 10,00,000 25,500 25,500 Jul-21 9.06 redemption date interest %
4,010 10,00,000 40,100 20,000 Jun-21 8.49 to 8.52 31.03.2020 31.03.2019
4,770 10,00,000 47,700 47,700 Apr-21 8.0874
15 10,00,000 - 150 Mar-21 Feb-20 8.85
1,500 10,00,000 15,000 - Mar-21 8.85
10 10,00,000 100 100 Aug-23 Jul-21 9.06
600 10,00,000 6,000 6,000 Feb-21 9.09
100 250
1,350 10,00,000 13,500 - Jan-21 8.11
3,500 10,00,000 35,000 35,000 Dec-20 8.00 to 8.98
1,750 10,00,000 17,500 17,500 Oct-20 7.75
2,200 10,00,000 22,000 22,000 Jun-20 8.10 to 9.10
4,800 10,00,000 48,000 48,000 May-20 8.12 to 8.90
800 10,00,000 8,000 8,000 Apr-20 8.11 to 9.02
500 10,00,000 - 5,000 Mar-20 9.02
9,850 10,00,000 - 98,500 Feb-20 7.97 to 8.85
5,500 10,00,000 - 55,000 Dec-19 7.97
2,750 10,00,000 - 27,500 Nov-19 8.10 to 9.10
5,750 10,00,000 - 57,500 Oct-19 8.05 to 8.20
5,850 10,00,000 - 58,500 Sep-19 8.06 to 8.46
2,250 10,00,000 - 22,500 Aug-19 7.50 to 9.90
7,300 10,00,000 - 73,000 Jul-19 7.80 to 9.90
2,750 10,00,000 - 27,500 Jun-19 9.13 to 9.90
6,750 10,00,000 - 67,500 May-19 8.03 to 9.20
1,100 10,00,000 - 11,000 Apr-19 8.00 to 9.20
4,62,990 8,81,890
137 138
` in lakhs 18.2 Details of term loans - Contractual principal repayment value (Contd.)
Particulars As at As at ` in lakhs
31.03.2020 31.03.2019 Rate of Interest Maturity Instalments Amount outstanding
Note : 18 BORROWINGS (Other than Debt Securities) at amortised cost 31.03.2020 31.03.2019
a) Term Loans 4 40,000 -
i) a) From Banks - Secured 6 - 80,000
Rupee Loans 34,41,247 21,97,592 7 9,375 -
Foreign currency Loans 11,788 2,00,467 > 5 Years 1 5,000 -
External Commercial Borrowings 2,47,326 34,629 Base Rate/ MCLR + spread (0.05% to 0.92%) < 1year 1 3,37,500 52,000
i) b) From Banks - Unsecured 4 80,000 -
Short term loans - 15,000 1 - 2 years 1 4,92,500 3,10,000
ii) From Other Parties - Secured 3 18,750 -
Financial Institutions - Rupee Loans 1,63,258 93,481 4 72,500 50,000
6 12,500 -
Securitisation - Rupee Loans 4,63,131 5,49,261
2 - 3 years 1 18,750 5,20,000
b) Loan repayable on demand - Secured 558 1,21,945
2 30,000 -
from Banks - Rupee Loans
4 72,500 1,00,000
Total 43,27,308 32,12,375
6 12,500 -
Borrowings within India 40,79,982 31,77,746 8 - 1,00,000
Borrowings Outside India 2,47,326 34,629 3 - 4 years 1 12,500 1,00,000
2 30,000 -
18.1 Security 4 72,500 -
(i) Secured term loans from banks and financial institution are secured by way of specific /pari passu charge on assets under hypothecation 6 12,500 -
relating to automobile financing and loans against immovable property. 4- 5 years 10 - 1,00,000
(ii) Loan repayable on demand is in the nature of Cash Credit from banks and is secured by way of floating charge on assets under 20 - 3,00,000
hypothecation and other assets. >5 Years 2 5,000 -
Rate based on T Bill + Spread < 1 year 1 74,400 5,000
(iii) The Company has not defaulted in the repayment of dues to its lenders.
2 32,500 -
(iv) Securitisation rupee loan represents the net outstanding value (Net of Investment in Pass-through Certificates) of the proceeds received
1 - 2 years 1 29,400 20,000
by the Company from securitisation trust in respect of loan assets transferred by the Company pursuant to Deed of Assignment. The 3 - 3,000
Company has provided Credit enhancement to the trust by way of cash collateral and Bank guarantee and also Refer note 6 4 25,000 -
5 - 8,334
18.2 Details of term loans - Contractual principal repayment value
` in lakhs 2 - 3 years 1 29,400 -
Rate of Interest Maturity Instalments Amount outstanding 2 12,500 -
31.03.2020 31.03.2019 4 - -
Base Rate / MCLR < 1year 1 1,05,833 21,000 3 - 4 years 3 - 28,200
2 1,38,750 - Fixed Rate < 1year 1 - 74,000
3 57,188 12,000 2 12,200 -
4 53,334 20,000 4 28,000 -
8 60,000 - 1 - 2 years 2 6,000 -
1 - 2 years 1 92,917 60,000 4 40,400 -
2 96,667 - 2 - 3 years 4 39,400 -
4 1,92,084 60,000 10 - 30,000
8 60,000 - 4 24,400 -
2 - 3 years 1 1,30,000 40,000 16 - 63,000
2 2,48,751 - 4 - 5 years 2 12,100 -
3 - 15,000 3Months Repo < 1year 4 18,000 -
4 79,582 - 1 - 2 years 1 30,000 -
8 60,000 - 8 36,000 -
3 - 4 years 1 8,333 - 2 - 3 years 8 36,000 30,000
2 1,63,334 - Total 35,98,513 23,26,534
4 60,000 - USD 2Y MIBOR + Spread < 1year 1 4,000 -
6 - 1,00,000 1-2 years 1 - 4,000
8 60,000 - USD 3M LIBOR + Spread < 1year 2 11,668 -
16 - 25,000 1-2 years 5 - 20,000
4 - 5 years 1 21,665 - USD 6M LIBOR + Spread < 1year 1 - 1,47,500
2 90,000 -
139 140
18.2 Details of term loans - Contractual principal repayment value (Contd.) 19.1 Details of Subordinated Liabilities - Contractual principal repayment value
` in lakhs (i) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt - Redeemable at par - No put call option
Rate of Interest Maturity Instalments Amount outstanding
31.03.2020 31.03.2019 No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest %
1-2 years 1 37,830 - - Perpetual
31.03.2020 31.03.2019
2-3 years 1 1,36,188 34,650 ₹ in lakhs ₹ in lakhs
4 - 5 years 1 69,607 - 400 1,00,00,000 40,000 - Jan-30 9.25
Total 2,59,293 2,06,150 3000 10,00,000 30,000 30,000 Aug-28 9.75
5300 10,00,000 53,000 53,000 Mar-28 9.05
1500 10,00,000 15,000 15,000 Aug-27 8.53
Details of Securitised loan 2500 10,00,000 25,000 25,000 Jun-27 8.78 to 8.80
` in lakhs
100 10,00,000 1,000 1,000 Nov-26 9.20
Rate of Interest Maturity Instalments Amount outstanding
31.03.2020 31.03.2019 150 10,00,000 1,500 1,500 Jun-24 11.00
50 10,00,000 500 500 May-24 11.00
Less than 1 year 1,58,012 1,90,854
250 10,00,000 2,500 2,500 Apr-24 11.00
Fixed 1-2 year 1,24,382 1,26,195 250 10,00,000 2,500 2,500 Mar-24 11.00
(4.9% to 8%) 2-3 year 54,213 56,971 200 10,00,000 2,000 2,000 Feb-24 11.00
3-4 year 15,261 13,886 250 10,00,000 2,500 2,500 Jan-24 11.00
4-5 year 5,593 6,506 2000 10,00,000 20,000 20,000 Nov-23 9.08 to 9.20
more than 5 years 17,222 26,700 500 10,00,000 5,000 5,000 Oct-23 9.08
Total 3,74,683 4,21,112 150 10,00,000 1,500 1,500 Sep-23 11.00
600 10,00,000 6,000 6,000 Dec-22 11.05 to 11.25
Less than 1 year 6,753 11,287
3,150 10,00,000 31,500 31,500 Nov-21 10.02
Floating 1-2 year 7,928 11,921
1,000 10,00,000 10,000 10,000 Jun-21 11.30
Base Rate/ MCLR - spread 2-3 year 8,439 12,280 1,000 10,00,000 10,000 10,000 May-21 11.30
(0.75% to 2.65%) 3-4 year 9,088 12,060 100 10,00,000 1,000 1,000 Mar-21 11.00
4-5 year 9,411 12,319 100 10,00,000 1,000 1,000 Feb-21 11.00
more than 5 years 46,706 66,786 150 10,00,000 1,500 1,500 Oct-20 11.00
Total 88,325 1,26,653 500 10,00,000 5,000 5,000 Jul-20 10.70
115 10,00,000 1,150 1,150 May-20 11.00
1,000 10,00,000 10,000 10,000 Apr-20 11.00
* Represents amounts to be paid to the securitisation trust as per the securitisation cash flows net of amounts to be received 750 10,00,000 - 7,500 Dec-19 11.50
against Investment in PTC. 700 10,00,000 - 7,000 Jun-19 11.40
1,500 10,00,000 - 15,000 May-19 11.70 to 11.75
2,79,150 2,68,650
18.3 Loan repayable on demand represents cash credit and overdraft facilities
` in lakhs

31.03.2020 31.03.2019 (ii) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt -Redeemable at premium - No put call option
Note : 19 SUBORDINATED LIABILITIES (at amortised cost)
Perpetual Debt - Unsecured 1,49,597 1,44,179 No. of Debentures Face Value ₹ Balance as at Due date of Redemption Premium ₹
redemption price ₹
Subordinated Debt - Unsecured 31.03.2020 31.03.2019
a) Rupee Denominated Bonds
40,677 - ₹ in lakhs ₹ in lakhs
b) Other Subordinated Debts 2,50,278 2,81,689 150 10,00,000 1,500 1,500 Nov-23 17,57,947 7,57,947
Total 4,40,552 4,25,868 1,500 1,500
i) All Subordinated liabilities have been contracted in India except for Rupee denominated bonds issued for ` 40,677 lakhs in FY19-20.
ii) The Company has not defaulted in the repayment of dues to its lenders.
141 142
19.1 Details of Subordinated Liabilities - Contractual principal repayment value (Contd.) ` in lakhs
(iii) Unsecured Redeemable Non-Convertible Debentures - Perpetual debt Particulars As at As at
31.03.2020 31.03.2019
No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest % Note : 21 PROVISIONS
- Perpetual (increase by 100 bps Provision for Employee Benefits
31.03.2020 31.03.2019 if call option is not - Compensated Absences 5,107 3,514
₹ in lakhs ₹ in lakhs exercised on the due date)
5,107 3,514
1000 5,00,000 5,000 - Dec-29 10.75 Other Provisions
1120 5,00,000 5,600 5,600 Mar-29 10.83 Provision for contingencies and service tax claims (Refer note 39) 3,838 3,837
5000 5,00,000 25,000 25,000 Feb-29 10.88 Provision for expected credit loss towards undrawn commitments (Refer Note 39) 131 51
500 5,00,000 2,500 2,500 Aug-24 12.80 3,969 3,888
174 10,00,000 1,740 1,740 Jul-24 12.90 Total 9,076 7,402
500 5,00,000 2,500 2,500 Jun-24 12.90
500 5,00,000 2,500 2,500 Feb-24 12.90 ` in lakhs
50 10,00,000 500 500 Jan-24 12.60 Particulars As at As at
1,031 10,00,000 10,310 10,310 Dec-23 12.50 to 12.60 31.03.2020 31.03.2019
245 10,00,000 2,450 2,450 Oct-23 12.60 Note : 22 OTHER NON FINANCIAL LIABILITIES
1,000 5,00,000 5,000 5,000 Oct-23 12.90 Income received in advance 1,712 2,303
300 10,00,000 3,000 3,000 Feb-23 12.80 Others 955 834
1,450 10,00,000 14,500 14,500 Dec-22 12.70 to 12.80 Statutory liabilities 974 2,159
860 5,00,000 4,300 4,300 Sep-22 12.75 Total 3,641 5,296
2,000 5,00,000 10,000 10,000 Aug-22 12.90
` in lakhs
200 5,00,000 1,000 1,000 Mar-22 12.50 As at 31.03.2020 As at 31.03.2019
Particulars
700 5,00,000 3,500 3,500 Jan-22 12.50 Nos. Amount Nos. Amount
3,500 5,00,000 17,500 17,500 Dec-21 12.50 to 12.95 Note : 23 A) EQUITY SHARE CAPITAL*
320 5,00,000 1,600 1,600 Aug-21 12.50 AUTHORISED
413 5,00,000 2,065 2,065 Jul-21 12.50 Equity Shares of ₹ 2 each (March 2019 - ₹10 each) with voting rights 1,20,00,00,000 24,000 24,00,00,000 24,000
2,021 5,00,000 10,105 10,105 Jun-21 12.50 Preference Shares of ₹ 100 each 5,00,00,000 50,000 5,00,00,000 50,000
3,000 5,00,000 15,000 15,000 Oct-20 12.05 74,000 74,000
1,45,670 1,40,670 ISSUED
Equity Shares of ₹ 2 each (March 2019 - ₹10 each) with voting rights 82,02,61,529 16,405 15,64,95,867 15,650
# Company can redeem using Call option on the maturity date with prior approval of RBI.
16,405 15,650
SUBSCRIBED AND FULLY PAID UP
` in lakhs Equity Shares of ₹ 2 each (March 2019 - ₹10 each) with voting rights 81,95,77,759 16,391 15,63,59,113 15,636
Particulars As at As at Add : Forfeited Shares 6,54,500 7 1,30,900 7
31.03.2020 31.03.2019 16,398 15,643
Note : 20 OTHER FINANCIAL LIABILITIES *During the current period, shares of face value of ` 10/- have been split into 5 equity shares of face value of ` 2/- each
Unpaid dividend 73 68
Advance from customers 1,758 1,789 a) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year:
` in lakhs
Security deposits received 216 221 As at 31.03.2020 As at 31.03.2019
Collections towards derecognised assets pending remittance 15,955 4,607 Nos. Amount Nos. Amount
Other liabilities 8,577 14,522 Equity Shares
Lease liability (Refer note 48) 12,042 - At the beginning of the year (₹10/- each) 15,63,59,113 15,636 15,63,31,371 15,633
Total 38,621 21,207 Additional shares pursuant to share split 62,54,36,452 - - -
Issued during the year
a) Qualified institutional Placement 2,81,25,000 563
b) Preferential Issue to the holding company 93,45,794 187
c) Employees Stock Option (ESOP) Scheme 3,11,400 5 27,742 3
Outstanding at the end of the year - ₹2/- each (PY ₹10/- each) 81,95,77,759 16,391 15,63,59,113 15,636
Forfeited shares
Equity Shares - Amount originally paid up 6,54,500 7 1,30,900 7
143 144
Note : 23 A) EQUITY SHARE CAPITAL (Contd.) Note : 23 B) OTHER EQUITY (Contd.)
` in lakhs
a) Terms/rights attached to Equity shares Particulars As at As at
31.03.2020 31.03.2019
The Company has only one class of equity shares having a par value of ₹ 2 (March 2019 -₹10)per share. All these shares have the same
rights and preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the Board Add: Amount transferred from retained earnings 50,000 60,000
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except for interim dividend. Closing balance at the end of the year 2,98,777 2,48,777
Share Based Payments Reserve (Refer Note f)
Repayment of capital will be in proportion to the number of equity shares held.
Balance at the beginning of the year 1,861 1,046
b) Equity Shares held by Holding Company Addition during the year 1,156 815
As at As at Closing balance at the end of the year 3,017 1,861
31.03.2020 31.03.2019 Retained Earnings (Refer Note g)
Cholamandalam Financial Holdings Limited 37,28,85,889 7,25,33,019 Balance at the beginning of the year 76,450 54,528
(formerly known as "TI Financial Holdings Limited") - Holding Company Profit for the year 1,05,237 1,18,615
Less:
c) Details of shareholding more than 5% shares in the Company Dividend - -
Equity Shares ` in lakhs Equity - Final (8,798) (3,127)
As at 31.03.2020 As at 31.03.2019 Equity - Interim (7,819) (7,036)
Nos. % holding Nos. % holding Distribution tax on Equity Dividend (3,415) (2,089)
in the class in the class
Transfer to Statutory Reserve (22,000) (24,000)
Cholamandalam Financial Holdings Limited 37,28,85,889 45.50 7,25,33,019 46.39
Transfer to General Reserve (50,000) (60,000)
- Holding Company Re-measurement Gain / (Loss) on Defined Benefit Obligations (Net) transferred to Retained Earnings (374) (441)
* During the current period, shares of face value of Rs 10/- have been split into 5 equity shares of face value of ` 2/- each. Closing balance at the end of the year 89,281 76,450
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders Cash flow hedge reserve (Refer Note h)
regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares. Balance at the beginning of the year (1,227) (2,077)
Addition (5,971) 850
d) Issue of Shares on preferential basis and Qualified institutional placements
Closing balance at the end of the year (7,198) (1,227)
On January 31, 2020 the Company alloted 2,81,25,000 equity shares of ₹ 2 each at a premium of ₹ 318 per share aggregating to
₹ 90,000 lakhs to eligbile investors through Qualified institutional placement. FVOCI Reserve (Refer Note i)
Balance at the beginning of the year (129) (129)
On March 9, 2020 the Company alloted 93,45,794 equity shares of ₹ 2 each at a premium of ₹ 319 per share aggregating to Addition - -
₹ 30,000 lakhs to the holding company under preferential allotment route. Closing balance at the end of the year (129) (129)
Share Application Money pending Allotment at the end of the year (Refer Note j) 10 -
` in lakhs Total Other Equity 8,00,786 6,01,931
31.03.2020 31.03.2019 a) Statutory reserve represents the reserve created as per Section 45IC of the RBI Act, 1934, pursuant to which a Non-Banking Financial
Note : 23 B) OTHER EQUITY Company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit annually as disclosed
Statutory Reserve (Refer Note a ) in the Statement of Profit and Loss account, before any dividend is declared. During the current year ended March 31, 2020, the
Balance at the beginning of the year 1,06,046 82,046 Company has transferred an amount of Rs 22,000 lakhs to the reserve created as per these provisions.
Add: Amount transferred from retained earnings 22,000 24,000
Closing balance at the end of the year 1,28,046 1,06,046 b) Capital reserve represents the reserve created on account of amalgamation of Chola Factoring Limited in the year 2013-14.
Capital Reserve (Refer Note b) c) Capital redemption reserve represents the amount equal to the nominal value of shares that were redeemed during the prior years.
Balance at the beginning of the year 4 4 The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Add: Changes during the year - -
Companies Act, 2013
Closing balance at the end of the year 4 4
Capital Redemption Reserve (Refer Note c) d) Securities premium reserve is used to record the premium on issue of shares. The premium received during the period represents
Balance at the beginning of the year 3,300 3,300 the premium received towards allotment of equity shares issued under Qualified institutional placement, Preferential allotment to
Add: Changes during the year - - holding company and ESOP scheme. The reserve can be utilized only for limited purposes such as issuance of bonus shares, buy back
Closing balance at the end of the year 3,300 3,300 of its own shares and securities in accordance with the Section 52 of the Companies Act, 2013.
Securities Premium Account (Refer Note d)
Balance at the beginning of the year 1,66,849 1,66,679 e) The general reserve is a free reserve, retained from Company’s profits and can be utilized upon fulfilling certain conditions in
Add: Premium on issue of shares on preferential basis (Refer note 23A) 29,813 - accordance with specific requirement of Companies Act, 2013.
Add: Premium on issue of shares on Qualified Institutional placement) (Refer note 23A) 89,438 -
f ) Under IND AS 102, fair value of the options granted is required to be accounted as expense over the life of the vesting period as
Add: Premium on ESOPs exercised 499 170
employee compensation costs, reflecting the period of receipt of service.
Less: Share issue expenses (Refer Note 32) (921) -
Closing balance at the end of the year 2,85,678 1,66,849 g) The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial
General Reserve (Refer Note e) position of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported in retained
Balance at the beginning of the year 2,48,777 1,88,777 earnings are not distributable in entirety.
145 146
Note : 23 B) OTHER EQUITY (Contd.) Note : 24 REVENUE FROM OPERATIONS (Contd.)
h) Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging b) Movement in Contract liability during the period as follows ` in lakhs
instruments entered into for cash flow hedges, which shall be reclassified to profit or loss only when the hedged transaction Particulars 31.03.2020 31.03.2019

affects the profit or loss, or included as a basis adjustment to the non-financial hedged item, consistent with the Company accounting
Contract liability at the beginning of the period 2,241 2,847
policies.
Revenue Recognised during the period 600 606
i) FVOCI Reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value Contract liability at the end of the period 1,641 2,241
through Other Comprehensive Income.
c) Total Revenue from Customer ` in lakhs
j) Share application money pending allotment as at March 31, 2020 represents amount received towards 5,000 equity shares of Particulars 31.03.2020 31.03.2019
the Company pursuant to ESOP scheme and have been subsequently allotted.
` in lakhs Total Revenue from contracts with Customer* 26,557 26,648
Particulars Year ended Year ended *Represents fee income (note 24B) and sale of services (note 24 D)
31.03.2020 31.03.2019 d) Due to Company’s nature of business and the type of contracts entered with the customers, the Company does not have any
REVENUE FROM OPERATIONS difference between the amount of revenue recognized in the statement of profit and loss and the contracted price.
Note :24A
e) Impairment recognised for Contract asset is Nil (Nil - March 31, 2019)
(i) Interest - on financial assets measured at amortised cost
f ) Performance Obligation:
(a) Loans
-Bills Discounting 721 1,027
- Servicing and Collection fee on Assignment: to collect the receivable from the customer and transfer the same to the assignee
-Term loans 7,83,449 6,48,596 representative.
(b) Bank Deposits - Other Service Income: To enable space for advertising at the branches and other related services.
-Bank Deposits under lien 3,845 4,384 g) There are no significant return / refund / other obligations for any of the above mentioned services.
-Other Bank Deposits free of lien 20,440 3,544
` in lakhs
(C) Other Deposits
Particulars Year ended Year ended
- Deposits with Financial Institutions 3,961 - 31.03.2020 31.03.2019
Total (A) 8,12,416 6,57,551
Note : 25 OTHER INCOME
Note :24B
Dividend Income* 0 0
(i) Fee Income*
Rent 17 29
Total (B) 18,987 17,606
*Services are rendered at a point in time Miscellaneous Income 9 38
Note :24C Total 26 67
Net gain on fair value changes on FVTPL - Realised * represents amount less than ` 50,000
Income from mutual funds 1,563 6,328 ` in lakhs
Total (C) 1,563 6,328 Particulars Year ended Year ended
Note :24D 31.03.2020 31.03.2019
(i )Sale of Services Note : 26 FINANCE COST
(a) Servicing and Collection fee on Assignment 485 242 Interest on financial liabilities measured at amortised cost
(b) Other Service Income 7,085 8,800 - Debt securities 1,01,821 1,27,527
Total (D) 7,570 9,042
- Borrowings other than debt securities 3,12,331 1,89,356
Note: Timing of revenue recognition
- Subordinated liabilities 42,567 40,621
Services rendered at a point in time 6,970 8,194
Others
Services rendered over a time 600 606
Total 7,570 8,800 - Bank charges 1,351 1,370
- Interest on lease liability 1,153 -
Total 4,59,223 3,58,874
Details related to services rendered over a time
` in lakhs
a) Contract balances ` in lakhs Particulars Year ended Year ended
Particulars As at As at 31.03.2020 31.03.2019
31.03.2020 31.03.2019
Note : 27 IMPAIRMENT ON FINANCIAL INSTRUMENTS
Contract Liabilities 1,641 2,241
Loss Assets Written Off (Net) / disposal of re-possessed assets* 30,427 24,245
Contract liability relates to payments received in advance of performance under the contract. Contract liabilities are recognised as revenue Impairment provision - Loans - measured at amortised cost 59,306 6,875
as (or when) we perform under the contract. Total 89,733 31,120
*Includes Loss on disposal of repossessed vehicles - Gross - ` 5,304 lakhs for the year ended March 31, 2020 (` 9,959 lakhs
- March 31, 2019)
147 148
` in lakhs Note : 30
Particulars Year ended Year ended a) Earnings Per Share
31.03.2020 31.03.2019
Note : 28 EMPLOYEE BENEFITS EXPENSES
31.03.2020 31.03.2019
Salaries, bonus and commission 58,419 53,553
Profit After Tax (₹ in lakhs) 1,05,237 1,18,615
Contribution to provident and other funds
Preference Dividend Paid (including tax thereon) (₹ in lakhs) - -
- Employees' provident fund 2,849 2,181
Profit After Tax Attributable to Equity Shareholders (₹ in lakhs) 1,05,237 1,18,615
- Superannuation fund 333 256
Weighted Average Number of Equity Shares (Basic) 78,71,82,549 78,17,31,200
Share based payment Expense 1,153 798
Add: Dilutive effect relating to ESOP/CCPS 8,80,135 5,77,995
Gratuity expense (Refer note 35) 962 670
Weighted Average Number of Equity Shares (Diluted) 78,80,62,834 78,23,09,195
Staff welfare expenses 1,784 1,600
Earnings per Share - Basic (₹) 13.37 15.17
Total 65,500 59,058
Earnings per Share - Diluted (₹) 13.35 15.16
Face Value Per Share (₹) 2.00 2.00
` in lakhs
Note:
31.03.2020 31.03.2019 Earnings per Share calculations are done in accordance with Ind AS 33 "Earnings per Share". Equity shares have been divided into
Note : 29 OTHER EXPENSES face value of ` 2 per share in pursuant to resolution passed through a postal ballot for which the results have been declared on
Rent and facility charges 1,262 5,278 June 3, 2019 and consequently, the number of equity shares for the year ended March 31, 2019 have been retrospectively adjusted
Rates and taxes 1,114 666 as required by Ind AS 33.
Energy cost 1,421 1,190
b) Income tax reconciliation
Repairs and maintenance 426 297
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
Communication costs 3,050 2,546
at India corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India's domestic tax rate
Printing and stationery 1,456 1,206
for the years ended 31st March 2020 and 2019 is, as follows:
Advertisement and publicity expenses 1,454 1,599 ` in lakhs
Directors fees, allowances and expenses 86 78 Particulars Year ended Year ended
Auditors' remuneration (Refer note 32) 151 63 31.03.2020 31.03.2019
Legal and professional charges 4,457 3,212 Accounting profit before tax from continuing operations 1,58,573 1,82,315
Insurance 1,534 1,154 Income tax rate of 25.17% (31 March 2019: 34.944%) 39,913 63,708
Travelling and conveyance 5,625 4,585 Effects of:
Information technology expenses 2,424 2,456 Impact of difference in tax base for Donations and CSR Expense 324 461
Loss on sale of property, plant and equipment(Net) 13 13 Share based payment expense – No deduction claimed under tax 290 279
Recovery charges 28,959 20,294 Impact of deduction u/s 35(1)(ii) - (189)
Corporate social responsibility expenditure (Refer note 29.1) 2,888 2,305 Impact Deduction u/s 80JJA (19) (360)
Outsource cost 23,976 15,245 Other Adjustments (17) (199)
Miscellaneous expenses (Refer note 29.2) 1,443 411 Enacted tax rate on opening Deferred tax asset 12,845 -
81,739 62,598 Income tax expense reported in statement of profit and loss 53,336 63,700
Less : Expenses recovered (233) (249) The effective income tax rate for 31 March 2020 is 25.17% (31 March 2019: 34.944%).
Total 81,506 62,349
Note : 31 TRANSFER OF FINANCIAL ASSETS
31.1 Transferred financial assets that are not derecognised in their entirety
31.03.2020 31.03.2019 The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred
29.1 Details of CSR expenditure financial assets do not qualify for derecognition, together with the associated liabilities:
Gross Amount required to be spent towards CSR u/s 135 (5) of Companies Act , 2013 2,887 2,305 A) Securitisation
Amount spent during the year
(a) Construction/ acquisition of asset - The company has Securitised certain loans, however the company has not transferred substantially all risks and rewards, hence these
(b) Others 2,888 2,305 assets have not been de-recognised in its entirety.
29.2 Donation to Electoral Trust 500 -
149 150
Note : 31 TRANSFER OF FINANCIAL ASSETS (Contd.) Note : 33 MICRO, SMALL & MEDIUM ENTERPRISES
` in lakhs
Particulars As at As at Based on and to the extent of the information received by the Company from the suppliers during the year regarding their status under
31.03.2020 31.03.2019 the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, there are no amounts due
Securitisations to MSME as at 31 March 2020 and as at 31 March 2019.
Carrying amount of transferred assets measured at amortised cost 4,92,803 5,64,273
4,63,131 5,49,261
The relevant particulars are furnished below:
Carrying amount of associated liabilities (Debt securities - measured at amortised cost)
4,85,991 5,87,198 ` in lakhs
Fair value of assets
Fair value of associated liabilities 4,65,551 5,50,860 31.03.2020 31.03.2019
Net position at Fair Value 20,440 36,338
Principal amount due to suppliers under MSMED Act, as at the year end 70 -
Interest accrued and due to suppliers under MSMED Act, on the above amount as at the year end - -
B) Direct bilateral assignment Payment made to suppliers (other than interest) beyond the appointed day, during the year - -
The Company has transferred certain loans (measured at amortised cost) by way of direct bilateral assignment, as a source of finance. Interest paid to suppliers under MSMED Act (other than Section 16) - -
Interest paid to suppliers under MSMED Act (Section 16) - -
As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the buyer, the assets have
Interest due and payable to suppliers under MSMED Act, for payments already made - -
been de-recognised from the Company’s balance sheet.
Interest accrued and remaining unpaid at the year end to suppliers under MSMED Act - -
The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain/(loss) on
derecognition, per type of asset. Note : 34
` in lakhs a) Expenditure in Foreign Currencies
Particulars As at As at ` in lakhs
31.03.2020 31.03.2019 Particulars Year ended Year ended
Assignment 31.03.2020 31.03.2019
Carrying amount of de-recognised financial asset 5,12,585 1,67,117 Travel 3 18
Carrying amount of Retained Assets at amortised cost 55,789 19,020 Membership fees 3 2
Interest on borrowings 9,837 28
License fees 53 47
` in lakhs
Particulars Year ended Year ended Professional charges 349 178
31.03.2020 31.03.2019
Assignment b) Remittances in Foreign Currencies
Gain on sale of the de-recognised financial asset 24,727 8,670 ` in lakhs
31.03.2020 31.03.2019
31.2 Transferred financial assets that are derecognised in their entirety but where the company has continuing involvement
Purchase of fixed assets 1,112 985
The company has not transferred any assets that are derecognised in their entirety where the company continues to have continuing Borrowing origination costs 2,695 4
involvement.
` in lakhs c) There is no dividend paid in foreign currency.
31.03.2020 31.03.2019 Note : 35 RETIREMENT BENEFIT
Note : 32 AUDITORS’ REMUNERATION A) Defined contribution plan
Statutory Audit 47 39
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and where there
Interim Audit 40 -
is no legal or constructive obligation to pay further contributions. During the year, the Company recognised Rs 2,849 lakhs (Previous
Limited Review 10 14
Year - Rs 2,181 lakhs) to Provident Fund under Defined Contribution Plan, Rs 333 lakhs (Previous Year - Rs 256 lakhs) for Contributions
Tax Audit 4 4
to Superannuation Fund and Rs 106 lakhs (Previous Year - Rs 208 lakhs) for Contributions to Employee State Insurance Scheme in the
Other Services 34 -
Statement of Profit and Loss.
Reimbursement of Expenses (incl. input tax credit expensed) 16 6
Total 151 63 B) Gratuity
Other services not covered in auditor remuneration The Company’s defined benefit gratuity plan requires contributions to be made to a separately administered fund. The gratuity plan is
Fees paid for services in connection with Qualified institutional placement and preferential allotment 160 - funded with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act,
Reimbursement of Expenses (incl. input tax credit expensed) 14 - employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s
length of service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the
statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans :
151 152
Note : 35 RETIREMENT BENEFIT (Contd.) Note : 35 RETIREMENT BENEFIT (Contd.)
Change in Defined Benefit Obligation and Fair value of Plan assets: ` in lakhs
` in lakhs
Particulars 31.03.2020 31.03.2019
Particulars Year ended Year ended Increase Decrease Increase Decrease
31.03.2020 31.03.2019
Sensitivity Analysis:
Defined Benefit Obligation at the beginning of the year 4,457 3,063
Discount Rate (+/- 1%) 5,623 6,394 4,189 4,754
Current Service Cost 891 695
Salary Growth Rate (+/- 1%) 6,347 5,652 4,725 4,204
Interest Cost 326 233
Remeasurement Losses/(Gains) Attrition Rate (+/- 50% of attrition rates) 5,787 6,253 4,342 4,574
a) Effect of changes in financial assumptions 312 83 Mortality Rate (+/- 10% of mortality rates) 5,987 5,987 4,456 4,456
b) Effect of experience adjustments 165 525
Notes:
c) Changes in demographic assumptions 0 -
Benefits paid (162) (146) 1. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
Transfer in / Out - 4
2. The Company’s best estimate of contribution during the next year is ₹ 2,396 lakhs.
Defined Benefit Obligation at the end of the year 5,989 4,457
Change in Fair Value Plan Assets 3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
Fair Value of Plan Assets at the Beginning of the year 3,481 3,398 term of the obligation.
Expected Returns on Plan Assets 255 258
Employer’s Contribution 1023 37
4. The entire Plan Assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC).
Benefits Paid (162) (146) C) Compensated Absences
Return on plan assets (excluding amount recognized in net interest expense) (22) (70)
Transfer in / Out - 4 Assumptions Year ended Year ended
Fair Value of Plan Assets at the end of the year 4,575 3,481 31.03.2020 31.03.2019
Amount Recognised in the Balance Sheet Discount Rate 6.45% p.a. 7.60% p.a.
Fair Value of Plan Assets as at the End of the year 4,575 3,481 Future salary increase 7.50% p.a. 7.50% p.a.
Defined Benefit Obligation at the End of the year (5,989) (4,457)
Attrition Rate
Amount Recognised in the Balance Sheet (1,414) (974)
Senior management 13% p.a. 13% p.a.
Cost of the Defined Benefit Plan for the year
Current Service Cost 891 695 Middle management 13% p.a. 13% p.a.
Net interest expense 326 233 Others 13% p.a. 13% p.a.
Expected Return on Plan Assets (255) (258) Mortality Indian Assured Indian Assured
Net Cost recognized in the statement of Profit and Loss 962 670 Lives (2012-14) Lives (2006-08)
Remeasurement Losses / (Gains) Ultimate Ultimate
a) Effect of changes in financial assumptions 312 83
b) Effect of experience adjustments 165 525 Notes:
c) Changes in demographic assumptions 0 -
d) Return on plan assets (excluding interest income) 22 70
1. The Company has not funded its Compensated Absences liability and the same continues to remain as unfunded as at March 31, 2020.
Net cost recognised in Other Comprehensive Income 499 678 2. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
Assumptions
3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term
Discount Rate 6.45% p.a. 7.30% p.a.
of the obligation.
Future salary increase 7.50% p.a. 7.50% p.a.
Attrition Rate
Note : 36 SEGMENT INFORMATION
- Senior management 13% p.a. 13% p.a.
- Middle management 13% p.a 13% p.a The Company is primarily engaged in the business of financing. All the activities of the Company revolve around the main business.
- Others 13% p.a. 13% p.a. Further, the Company does not have any separate geographic segments other than India
Expected rate of return on Plan Assets 7.50% p.a. 7.50% p.a. During year ending 31 March 2020, For management purposes, the Company has been organised into three operating segments based
Mortality Indian Assured Indian Assured on products and services, as follows
Lives (2012-14) Lives (2006-08)
Ultimate Ultimate Vehicle Finance Loans - Loans to customers against purchase of new/used vehicles, tractors, construction equipment and loan to
Maturity profile of Defined Benefit Obligations automobile dealers.
Weighted average duration (Based on discounted cash flows) 6 Years 6 Years Home equity - Loans to customer against immovable property
Expected Cash flows over the subsequent periods: (valued on discounted basis)
Within the next 12 months (next annual reporting period) 643 536 Other loans - This includes loans given for acquisition of residential property, loan against shares and other unsecured loans
Between 2 and 5 years 2,937 2,234 The Chief Operating Decision Maker (CODM) monitors the operating results of its business units separately for making decisions about
Between 5 and 10 years 2,782 2,202 resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured
Beyond 10 Years 3,363 2,758 consistently with operating profits or losses in the financial statements. However, income taxes are managed on a entity as whole basis
Total Expected Cash flows 9,725 7,730 and are not allocated to operating segments.
153 154
Note : 36 SEGMENT INFORMATION (Contd.) Note : 36 SEGMENT INFORMATION (Contd.) ` in lakhs
` in lakhs
Year ended March 31, 2020 Particulars Vehicle finance Home equity Others Unallocable Total
Particulars Vehicle finance Home equity Others Unallocable Total
As on March 31, 2020
Interest Income 6,26,829 1,25,291 31,983 28,313 8,12,416 Segment Assets 42,15,030 10,53,555 2,70,650 55,39,235
Net gain on derecognition of financial instruments 9,303 6,180 9,244 - 24,727 Unallocable Assets 8,60,069
8,60,069
under amortised cost category Total Assets 63,99,304
Fee Income 16,722 2,003 217 45 18,987 Segment Liabilities 36,76,775 9,19,017 2,36,087 48,31,879
- Net gain on Fair value change on financial instrument - - - 1,563 1,563 Unallocable Liabilities 7,50,241
7,50,241
Sale of Services 6,560 731 279 - 7,570 Total Liabilities 55,82,120
Segment revenue from Operations (I) 6,59,414 1,34,205 41,723 29,921 8,65,263 As on March 31, 2019
Other income (II) - - - 26 26 Segment Assets 40,60,588 9,95,439 2,04,706 52,60,733
Total Segment Income - (I) + (II) 6,59,414 1,34,205 41,723 29,947 8,65,289 Unallocable Assets 4,81,897
4,81,897
Expenses
Total Assets 57,42,630
Finance costs 3,47,457 79,477 18,300 13,989 4,59,223
Segment Liabilities 36,70,570 9,00,231 1,86,772 47,57,573
Impairment of Financial Instruments 77,581 9,591 1,826 735 89,733
Unallocable Liabilities 3,67,483
3,67,483
Employee benefits expense 54,205 6,916 4,175 204 65,500
Total Liabilities 51,25,056
Depreciation and amortisation expense 9,068 992 320 374 10,754
Other expenses 68,481 5,610 3,570 3,845 81,506 In computing the segment information, certain estimates and assumptions have been made by the management, which have been relied
Segment Expenses 5,56,792 1,02,586 28,191 19,147 7,06,716 upon.
Segment Profit / (loss) before taxation 1,02,622 31,619 13,532 10,800 1,58,573
As the asset are allocated to segment based on certain assumptions, hence additions to the Property, plant and equipment have not
Tax expense 53,336
disclosed separately for each specific segment.
Profit for the year 1,05,237
There are no revenue from transactions with a single external customer or counter party which amounted to 10% or more of the Company's
total revenue in the Current year and Previous year.
` in lakhs
Note : 37 RELATED PARTY DISCLOSURES
Year ended March 31, 2019
Particulars Vehicle finance Home equity Others Unallocable Total List of Related Parties
Revenue from Operations • Holding Company : Cholamandalam Financial Holdings Limited (formerly known as TI Financial Holdings Limited)
- Interest Income 5,19,129 1,08,421 22,007 7,994 6,57,551
• Entity having significant influence over holding company: Ambadi Investments Limited
- Net gain on derecognition of financial - 8,670 - - 8,670
instruments under amortised cost category • Subsidiaries of Entity having significant influence over holding company: Parry Enterprises Limited and Parry Agro Limited.
- Fee Income 15,788 1,711 108 (1) 17,606 • Fellow Subsidiaries: Cholamandalam MS General Insurance Company Limited, Cholamandalam Health Insurance Limited
- Net gain on Fair value change on financial instrument - - - 6,328 6,328 • Joint Venture of Holding Company: Cholamandalam MS Risk Services Limited
- Sale of Services 8,064 237 121 620 9,042
Subsidiaries: Cholamandalam Securities Limited, Cholamandalam Home Finance Limited (Formerly known as
•
Segment revenue from Operations (I) 5,42,981 1,19,039 22,236 14,941 6,99,197
- Other income (II) - - - 67 67 Cholamandalam Distribution Services Limited), White Data Systems India Private Limited (upto September 2018)
Total Segment Income - (I) + (II) 5,42,981 1,19,039 22,236 15,008 6,99,264 • Associate : White Data Systems India Private Limited (Effective October 2018)
Expenses • Key Managerial Personnel:
- Finance costs 2,80,602 70,732 12,227 (4,687) 3,58,874
a. Mr. N. Srinivasan, Executive Vice Chairman and Managing Director (upto August 18, 2018);
- Impairment of Financial Instruments 27,291 (433) 4,262 - 31,120
- Employee benefits expense 50,552 5,287 3,026 193 59,058 b. Mr. Arun Alagappan, Executive Director (From August 19, 2017) and Managing Director (From November 15, 2019)
- Depreciation and amortisation expense 4,962 513 73 - 5,548 c. Mr. D. Arulselvan, Chief Financial Officer
- Other expenses 52,667 5,228 2,117 2,337 62,349 d. Ms. P. Sujatha, Company Secretary
Segment Expenses 4,16,074 81,327 21,705 (2,157) 5,16,949
e. Mr. Ravindra Kumar Kundu, Executive Director (From January 23, 2020)
Segment Profit / (loss) before taxation 1,26,907 37,712 531 17,165 1,82,315
Tax expense 63,700
Profit for the year 1,18,615
155 156
Note : 37 RELATED PARTY DISCLOSURES (Contd.) Note : 37 RELATED PARTY DISCLOSURES (Contd.) ` in lakhs
• Non-Executive Directors Particulars Year ended Year ended
a) Mr. M B N Rao (upto July 26, 2018) 31.03.2020 31.03.2019
b) Mr. V. Srinivasa Rangan (upto March 31, 2019) Loans given
c) Ms. Bharati Rao (up to July 30, 2019) a) Cholamandalam Securities Limited 17,650 15,300
d) Mr. Ashok Kumar Barat b) White Data Systems India Private Limited 340 900
Loans recovered
e) Mr. M.M. Murugappan (From May 31, 2018)
a) Cholamandalam Securities Limited 18,100 14,150
f ) Mr. N Ramesh Rajan (From October 30, 2018)
b) White Data Systems India Private Limited 340 572
g) Mr. Rohan Verma (From March 25, 2019)
Interest Income
h) Ms. Bhama Krishnamurthy (From July 30, 2019)
a) Cholamandalam Securities Limited 37 47
Note: b) White Data Systems India Private Limited 28 18
Related party relationships are as identified by the Management and relied upon by the Auditors Loans availed
a) Cholamandalam Home Finance Limited 25,050 41,550
` in lakhs
Particulars Year ended Year ended Loans repaid
31.03.2020 31.03.2019 a) Cholamandalam Home Finance Limited 25,050 41,550
Note : 37 a) TRANSACTIONS DURING THE YEAR Interest Expense
Dividend Payments (Equity Shares) a) Cholamandalam Home Finance Limited 95 186
a) Cholamandalam Financial Holdings Limited 7,634 4,709 b) Cholamandalam MS General Insurance Company Limited 1,696 1,991
b) Ambadi Investments Limited 708 456 Commission and Sitting fees to non-executive Directors 87 68
c) Parry Enterprises Limited 0* 0*
Amount received towards reimbursement of expenses
a) Cholamandalam Financial Holdings Limited 100 73
b) Cholamandalam Securities Limited 94 88
` in lakhs
c) Cholamandalam Home Finance Limited 3,898 3,556 Particulars As at As at
d) Cholamandalam MS General Insurance company Limited 18 28 31.03.2020 31.03.2019
e) White Data Systems India Private Limited - 16 Note : 37 d) BALANCES OUTSTANDING AT THE YEAR END
Expenses – Reimbursed Rental Deposit Receivable / (Payable)
a) Cholamandalam Securities Limited 15 9
a) Cholamandalam MS General Insurance Company Limited - (21)
b) Cholamandalam MS General Insurance Company Limited 2 -
Loans - Receivable
c) Cholamandalam Home Finance Limited 77 -
Services Received a) Cholamandalam Securities Limited 700 1,150
a) Cholamandalam Securities Limited 3 6 b) White Data Systems India Private Limited 340 340
b) White Data Systems India Private Limited 32 33 Debt Securities – Payable
c) Ambadi Investments Limited - 0* a) Cholamandalam MS General Insurance Company Limited (19,070) (22,249)
d) Parry Enterprises Limited 714 748 Other Receivable / (Payable)
e) Parry Agro Limited - 2
a) Cholamandalam Financial Holdings Limited - -
f ) CE Info systems Private Limited 6 -
b) Cholamandalam Securities Limited 1 1
g) Cholamandalam MS General Insurance Company Limited 164 124
Expense recovered – Rent c) Cholamandalam Home Finance Limited 140 282
a) Cholamandalam Securities Limited 77 60 d) Cholamandalam MS General Insurance Company Limited 16 43
b) Cholamandalam MS General Insurance company Limited 42 56 e) White Data Systems India Private Limited (7) -
c) Parry Enterprises Limited 1 1 f ) Parry Enterprises Limited 1 -
d) Cholamandalam MS Risk Services Limited 0* 0*
g) Cholamandalam MS Risk services Limited 0* -
Rental Expense
h) Key Managerial Personnel 2 NA
a) Cholamandalam Home Finance Limited 90 8
157 158
Note : 37 RELATED PARTY DISCLOSURES (Contd.) Note : 38 CONTINGENT LIABILITIES AND COMMITMENTS (Contd.)
` in lakhs
Nature of Transaction Year ended Year ended (b) Commitments
31.03.2020 31.03.2019
` in lakhs
Note : 37 e) KEY MANAGERIAL PERSONNEL 31.03.2020 31.03.2019
Short- term employee benefits 656 799 Capital commitments 2,766 1,619
Post-employment pension (defined Contribution) 66 81 Disbursements - Undrawn lines 84,535 73,345
Dividend Payments 24 16
Share based payments 48 56
(c) The Supreme Court had passed judgement on 28th February 2019 that all allowances paid to employees are to be considered for the
* Represents amounts less than ₹ 1 lakh purposes of PF wage determination. There are numerous interpretative issues relating to the above judgement. The Company has
complied the same on prospective basis from the date of the SC order.
Disclosure pursuant to Schedule V of Clause A.2 of Regulation 34 (3) and Regulation 53(f) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. Note : 39 CHANGES IN PROVISIONS
` in lakhs
I. Disclosures relating Loans and Advances /Investments ` in lakhs Particulars As at Additional Utilisation/ As at
Sl No. Loans and Advances in the nature of Loans Maximum Amount Maximum Amount 31.03.2019 Provision Reversal 31.03.2020
Outstanding during Outstanding during Provision for Contingencies and Service Tax claims 3,837 1 - 3,838
year March 2020 year March 2019 Provision for Undrawn commitments 51 80 - 131
(A) To Subsidiaries
- Cholamandalam Securities Limited 2,500 2,600 Particulars As at Additional Utilisation/ As at
- Cholamandalam Home Finance Limited 2,200 - 31.03.2018 Provision Reversal 31.03.2019
(B) To Associates Provision for Contingencies and Service Tax claims 3,813 24 - 3,837
- White Data Systems India Private Limited 340 919 Provision for Undrawn commitments 12 39 - 51
II. Cholamandalam Financial Holdings Limited (CFHL), promoter-group company holds 46% of equity shares of the company. Disclosure
Undrawn loan commitments are commitments under which the Group is required to provide a loan under pre-sanctioned terms to
relating to transactions with CFHL is given above.
the customer.
Note : 38 CONTINGENT LIABILITIES AND COMMITMENTS The undrawn commitments provided by the Group are predominantly in the nature of limits provided for Automobile dealers based
(a) Contested Claims not provided for: on the monthly loan conversions and partly disbursed loans for immovable properties. These undrawn limits are converted within
` in lakhs a short period of time and do not generally remain undisbursed / undrawn beyond one year from the reporting date. The undrawn
31.03.2020 31.03.2019
commitments amount outstanding as at March 31, 2020 is ₹ 84,535 lakhs (₹ 73,345 lakhs as at March 31, 2019).
Income tax and Interest on Tax issues where the Company has gone on appeal 23,104 17,316 The Company creates expected credit loss provision on the undrawn commitments outstanding as at the end of the reporting period
Decided in the Company’s favour by Appellate Authorities and for which the 21,898 21,292 and the related expected credit loss on these commitments as at March 31, 2020 is ₹ 131 lakhs (₹ 51 lakhs as at March 31, 2019).
Department is on further appeal with respect to Income Tax
Sales Tax issues pending before Appellate Authorities in respect of which 2,660 5,081 Note : 40 ESOP DISCLOSURE
the Company is on appeal.
Service Tax issues pending before Appellate Authorities in respect of which 19,978 19,978 ESOP 2007
the Company is on appeal. The Board at its meeting held on June 22, 2007, approved an issue of Stock Options up to a maximum of 5% of the issued Equity
Disputed claims against the Company lodged by various parties under litigation 8,526 6,741 Capital of the Company (before Rights Issue) aggregating to 1,904,162 Equity Shares (prior to share split) in a manner provided in
(to the extent quantifiable)
the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines.
i) The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals / defence. ESOP 2016
ii) It is not practicable for the Company to estimate the timings of the cashflows, if any, in respect of the above pending resolution of The Board at its meeting held on October 7, 2016, approved to create, and grant from time to time, in one or more tranches, not
the respective proceedings. exceeding 31,25,102 Employee Stock Options to or for the benefit of such person(s) who are in permanent employment of the
iii) The Company does not expect any reimbursement in respect of the above contingent liabilities. company including some of subsidiaries, managing director and whole time director, (other than promoter/promoter group of the
iv) Future Cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various company, independent directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the
forums/authorities. company), as may be decided by the board, exercisable into not more than 31,25,102 equity shares of face value of ` 10/- each fully
paid-up, on such terms and in such manner as the board may decide in accordance with the provisions of the applicable laws and
the provisions of ESOP 2016.
In this regard, the Company has recognised expense amounting to Private Limited ` 1,153 lakhs for employees services received
during the year, shown under Employee Benefit Expenses (Refer Note 28).
159 160
Note : 40 ESOP Disclosure (Contd.) Note : 40 ESOP DISCLOSURE (Contd.)
The movement in Stock Options during the current year are given below: The movement in Stock Options during the previous year are given below:
Employee Stock Option Plan 2007 Employee Stock Option Plan 2007
Options Options Options Options
During the Year Options Options Options
Options
outstanding outstanding vested unvested During the Year 2018-19
vested
but not outstanding unvested
outstanding
exercised but not
exercised
Particulars Date of As at Addition Option Options Options As at As at As at Exercise Weighted
Particulars Date of As at Option Options Options As at As at As at Exercise Weighted
Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average
Grant 31.03.2018 Granted Cancelled Exercised 31.03.2019 31.03.2019 31.03.2019 Price Average
of options / Expired and Remaining
/ lapsed and Remaining
on account allotted Contractual
allotted Contractual
of share split* Life
Life
Gt 25 25-Apr-08 - - - - - - - - 38 -
Gt 30 30 Jul 07 - - - - - - -
Apr 2008
Jul 2007
GT 27 27-Jan-11 9,163 36,652 - - 22,695 23,120 23,120 - 38 -
Gt 25 25 Jan 08 - - - - - - -
JAN 2011A
Jan 2008
GT 27 27-Jan-11 5,976 23,904 - - 29,880 - - - 38 -
Gt 25 25 Apr 08 300 - - 300 - - - 192 -
JAN 2011B
Apr 2008
GT 30 30-Apr-11 7,948 31,792 - - 14,500 25,240 25,240 - 33 -
GT 27 27 Jan 11 15,625 - - 6,462 9,163 9,163 - 188 -
APR 2011
JAN 2011A
GT 27 27-Oct-11 7,936 31,744 - - 9,920 29,760 29,760 - 31 -
GT 27 27 Jan 11 5,976 - - - 5,976 5,976 - 188 -
OCT 2011
JAN 2011B
Total 31,023 1,24,092 - - 76,995 78,120 78,120 -
GT 30 30 Apr 11 14,357 - 400 6,009 7,948 7,948 - 163 -
Employee Stock Option Plan 2016 APR 2011
GT 27 27 Oct 11 8,036 - - 100 7,936 7,936 - 155 -
Options Options Options Options OCT 2011
outstanding During the Year outstanding vested unvested Total 44,294 - 400 12,871 31,023 31,023 -
but not
exercised
Particulars Date of As at Addition Option Options Options As at As at As at Exercise Weighted Employee Stock Option Plan 2016
Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average
of options / Expired and Remaining Options Options Options
Options
on account allotted Contractual outstanding During the Year 2018-19
vested unvested
outstanding
of share split* Life but not
exercised
GT 25 25-Jan-17 4,72,842 18,91,368 - 17,920 2,27,690 21,18,600 13,76,010 7,42,590 202 0.82 years Particulars Date of As at Option Options Options As at As at As at Exercise Weighted
JAN 2017 Grant 31.03.2018 Granted Cancelled Exercised 31.03.2019 31.03.2019 31.03.2019 Price Average
GT 30 30-Jan-18 49,040 1,96,160 - - 6,715 2,38,485 1,46,535 91,950 262 0.84 years / lapsed and Remaining
JAN 2018 allotted Contractual
GT 30 30-Jan-18 17,960 71,840 - - - 89,800 35,920 53,880 262 1.34 years Life
JAN 2018 A
GT25 25 Jan 17 5,22,653 - 34,940 14,871 4,72,842 1,70,418 3,02,424 1,010 1.32 years
GT 23 23-Apr-18 8,980 35,920 - - - 44,900 8,980 35,920 312 1.19 years
JAN2017
APR 2018
GT30 30 Jan 18 55,920 - 6,880 - 49,040 12,260 36,780 1,310 1.34 years
GT 26 26-Jul-18 54,972 2,19,888 - - - 2,74,860 68,715 2,06,145 299 0.82 years
JAN2018
JUL 2018
GT30 30 Jan 18 26,940 - 8,980 - 17,960 3,592 14,368 1,310 1.96 years
GT 30 30-Oct-18 73,460 2,93,840 - - - 3,67,300 73,460 2,93,840 254 1.71 years
JAN2018A
OCT 2018
GT23 23 Apr 18 - 8,980 - - 8,980 - 8,980 1,562 1.77 years
GT 19 19-Mar-19 1,17,692 4,70,768 - - - 5,88,460 1,46,060 4,42,400 278 2.09 years
APR2018
MAR 2019
GT26 26 Jul 18 - 54,972 - - 54,972 - 54,972 1,497 1.45 years
GT 30 30-Jul-19 - - 31,632 - - 31,632 - 31,632 248 0.83 years
JUL2018
JUL 2019
GT30 30 Oct 18 - 73,460 - - 73,460 - 73,460 1,269 2.29 years
GT 05 05-Nov-19 - - 2,75,600 - - 2,75,600 - 2,75,600 316 2.30 years
OCT2018
NOV 2019
GT19 19 Mar 19 - 1,17,692 - - 1,17,692 - 1,17,692 1,390 2.67 years
GT 23 23-Jan-20 - - 53,000 - - 53,000 - 53,000 317 2.52 years
MAR2019
JAN 2020
Total 6,05,513 2,55,104 50,800 14,871 7,94,946 1,86,270 6,08,676
Total 7,94,946 31,79,784 3,60,232 17,920 2,34,405 40,82,637 18,55,680 22,26,957
Note: Includes options (vested and unvested) issued to employees of subsidiary as at March 31, 2020 - 11,276 options prior to share Note: Includes options (vested and unvested) issued employees of subsidiary as at March 31, 2019 - 11,276 options prior to share
split (March 31, 2019 - 11,276 options) split (March 31, 2018 - 11,276 options).
*Equity shares of face value of ₹ 10/- have been split into face value of ₹ 2 per share on June 18, 2019, pursuant to resolution passed
through postal ballot on June 3, 2019
161 162
Note : 40 ESOP DISCLOSURE (Contd.)
ESOP 2016
The following tables list the inputs to the Black Scholes model used for the plans for the year ended 31st March 2020: Variables
ESOP 2007 Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value
Interest Rate Volatility underlying of the Option
Variables
Share in the (₹)
Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value Market at the time
Interest Rate Volatility underlying of the Option of the Option
Share in the (₹) Grant (₹)
Market at the time
of the Option 25 Jan 17 6.36% - 6.67% 3.5 -6.51 years 33.39% -34.47% 0.54% 1,010.00 401.29
Grant (₹) 30 Jan 18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 496.82
30 Jan 18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 531.84
30 Jul 07 7.10% - 7.56% 3-6 years 40.64% -43.16% 5.65% 193.40 61.42 23 Apr 18 7.45%-7.81% 3.51 -6.51 years 30.33%-32.38% 0.42% 1,562.35 646.08
24 Oct 07 7.87% -7.98% 3-6 years 41.24% -43.84% 5.65% 149.90 44.25 26 Jul 18 7.71%-7.92% 3.51 -5.51 years 30.56%-31.83% 0.43% 1,497.30 586.32
30 Oct 18 7.61%-7.85% 3.51 -6.51 years 32.34%-32.70% 0.51% 1,268.50 531.36
25 Jan 08 6.14% -7.10% 3-6 years 44.58% -47.63% 5.65% 262.20 78.15
19 Mar 19 6.91% - 7.25% 3.51 -6.51 years 32.19% -32.59% 0.47% 1,390.05 564.13
25 Apr 08 7.79% - 8.00% 2.5-5.5 years 45.78% - 53.39% 3.97% 191.80 76.74 30 Jul 19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 248.20 83.66*
30 Jul 08 9.14% - 9.27% 2.5-5.5 years 46.52% - 53.14% 3.97% 105.00 39.22 5 Nov 19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 316.00 112.09*
23 Jan 20 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 317.00 109.51*
24 Oct 08 7.54% - 7.68% 2.5-5.5 years 48.2% - 55.48% 3.97% 37.70 14.01
* Fair value option of equity shares issued under this grant is post share split with a face value of ₹ 2/- each
27 Jan 11 8% 4 years 59.50% 10% 187.60 94.82
- Tranche I Note : 41 SHARING OF COSTS
- Tranche II 8% 3.4 years 61.63% 10% 187.60 90.62 The Company shares certain costs / service charges with other companies in the Group. These costs have been allocated between the
30 Apr 11 8% 4 years 59.40% 25% 162.55 73.07
Companies on a basis mutually agreed between them, which has been relied upon by the Auditors.
28 Jul 11 8% 4 years 58.64% 25% 175.35 79.17 Note : 42 CAPITAL MANAGEMENT
27 Oct 11 8% 4 years 57.52% 25% 154.55 67.26 The Company maintains an actively managed capital base to cover risks inherent in the business, meeting the capital adequacy requirements of
Reserve Bank of India (RBI), maintain strong credit rating and healthy capital ratios in order to support business and maximise shareholder value.
The shareholders of the Company, at the 34th Annual General Meeting held on July 30, 2012, authorised extension of exercise period The adequacy of the Company’s capital is monitored by the Board using, among other measures, the regulations issued by RBI.
from 3 years from the date of vesting to 6 years from the date of vesting. Accordingly, the Company has measured the fair value of the The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk characteristics
options using the Black Scholes model immediately before and after the date of modification to arrive at the incremental fair value of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend payment to shareholders,
arising due to the extension of the exercise period. The incremental fair value so calculated is recognised from the modification date return capital to shareholders or issue capital securities.
over the vesting period in addition to the amount based on the grant date fair value of the stock options.
The Company has complied in full with the capital requirements prescribed by RBI over the reported period. Refer Note 51A(i) for disclosure of
The incremental (benefit)/cost due to modification of the exercise period from 3 years to 6 years from the date of vesting for the year capital adequacy as per applicable RBI regulations.
ended March 31, 2020 is ₹ Nil (March 31,2019- ₹ Nil)
42.1 RISK MANAGEMENT
The fair value of the options has been calculated using the Black Scholes model on the date of modification. The company is committed to create value for its stakeholders through sustainable business growth and with that intent has put in place a robust
The assumptions considered for the calculation of the fair value (on the date of modification) are as follows: risk management framework to promote a proactive approach in reporting, evaluating and resolving risks associated with the business. Given the
nature of the business the company is engaged in, the risk framework recognizes that there is uncertainty in creating and sustaining such value
Variables Post Modification as well as in identifying opportunities. Risk management is therefore made an integral part of the company’s effective management practice.
Risk Free Interest Rate 7.92% - 8.12%
Risk Management Framework:
Expected Life 0.12 years - 6.25 years
Company’s risk management framework is based on
Expected Volatility 28.28% - 63.00%
(a) Clear understanding and identification of various risks
Dividend Yield 1.18%
Price of the underlying share in market at the time of the option grant.(₹) 212.05 (b) Disciplined risk assessment by evaluating the probability and impact of each risk
(c) Measurement and monitoring of risks by establishing key risk indicators with thresholds for all critical risks and
(d) Adequate review mechanism to monitor and control risks.
Company’s risk management division works as a value center by constantly engaging with the business providing reports based on key analysis
and insights. The key risks faced by the company are credit risk, liquidity risk, interest rate risk, operational risk, reputational and regulatory risk,
which are broadly classified as credit risk, market risk and operational risk. The company has a well-established risk reporting and monitoring
framework. The in-house developed risk monitoring tool, Chola Composite Risk Index, measures the movement of top critical risks. This provides
163 164
Note : 42 CAPITAL MANAGEMENT (Contd.) Note : 42 CAPITAL MANAGEMENT (Contd.)
Small Commercial Vehicles, Refinance against existing vehicles, older vehicles (first time buyers), Tractors and Construction Equipment have
the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified key risk indicators and are aligned
portfolio share between 5% and 22% leading to well diversified sub product mix.
to the overall company’s risk appetite framework approved by the board. The company’s risk management initiatives and risk MIS are reviewed
monthly by the top management. This process enables the company to reassess the top critical risks in a changing environment that need to be Home Equity is mortgage loan against security of existing immovable property (primarily self-occupied residential property) to self-employed
focused on. non-professional category of borrowers and contributes to 22% of the lending book of the Company as of March 31, 2020 (21% as of March 31,
2019). Portfolio is concentrated in North (41%) with small presence in East (4%). The remaining is evenly distributed between South and Western
Risk Governance structure:
parts of the country.
The company’s overall risk governance is handled by three lines of defense to ensure the effectiveness of an organization’s risk management
The Concentration of risk is managed by Company for each product by its region and its sub-segments. Company did not overly depend on few
framework including monitoring and assurance functions within the organization.
regions or sub-segments as of March 31, 2020.
a) Under the first line of defence, risk champions are identified in each functional and business unit to take ownership, responsibility
42.5 OPERATIONAL RISK
and accountability for directly assessing, controlling and mitigating risks.
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. The operational
b) The risk management team under the guidance of the risk management committee acts as the second line of defense. The
risks of the company are managed through comprehensive internal control systems and procedures and key back up processes. In order to further
risk management division has established a comprehensive risk management framework across the business and provides
strengthen the control framework and effectiveness, the company has established risk control self-assessment at branches to identify process
appropriate reports on risk exposures and analysis in its pursuit of creating awareness across the company about risk
lapses by way of exception reporting. This enables the management to evaluate key areas of operational risks and the process to adequately
management. The RMC of the board meets minimum of four times a year and reviews the risk management policy, implementation
mitigate them on an ongoing basis. The company also undertakes risk based audits on a regular basis across all business units / functions. While
of risk management framework, monitoring of critical risks, and review of various other initiatives with a structured annual plan.
examining the effectiveness of control framework through self-assessment, the risk-based audit would assure effective implementation of self-
c) Third line of defense constitutes internal auditors, internal external auditors and statutory auditors provide assurance to the certification and internal financial controls adherence, thereby, reducing enterprise exposure.
audit committee and senior management on the effectiveness of internal governance and risk processes.
The company has put in place a robust Disaster Recovery (DR) plan, which is periodically tested. Business Continuity Plan (BCP) is further put in
42.2 CREDIT RISK place to ensure seamless continuity of operations including services to customers, when confronted with adverse events such as natural disasters,
Credit risk arises when a borrower is unable to meet his financial obligations to the lender. This could be either because of wrong assessment of technological failures, human errors, terrorism, etc. Periodic testing is carried out to address gaps in the framework, if any. DR and BCP audits
the borrower’s payment capabilities or due to uncertainties in his future earning potential. The effective management of credit risk requires the are conducted on a periodical basis to provide assurance regarding the effectiveness of the company’s readiness. The company is continuously
establishment of appropriate credit risk policies and processes. The company has comprehensive and well-defined credit policies across various engaged in creating risk awareness and culture across the organisation through training on risk management tools and communication through
businesses, products and segments, which encompass credit approval process for all businesses along with guidelines for mitigating the risks risk e-newsletters.
associated with them. The appraisal process includes detailed risk assessment of the borrowers, physical verifications and field visits. The company 42.6 LIQUIDITY RISK
has a robust post sanction monitoring process to identify credit portfolio trends and early warning signals. This enables it to implement necessary
Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are
changes to the credit policy, whenever the need arises. Also, being in asset financing business, most of the company’s lending is covered by
settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its
adequate collaterals from the borrowers. The company has a robust online application underwriting model to assess the credit worthiness of the
payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances.
borrower for underwriting decisions for its vehicle finance, home equity and home loan business. The company also has a well-developed model
Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this
for the vehicle finance portfolio, to help business teams plan volume with adequate pricing of risk for different segments of the portfolio.
risk, management has arranged for diversified funding sources and adopted a policy of availing funding in line with the tenor and repayment
42.3 MARKET RISK pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Company has developed internal control processes
Market Risk is the possibility of loss arising from changes in the value of a financial instrument as a result of changes in market variables such and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and the availability of unencumbered
as interest rates, exchange rates and other asset prices. The company’s exposure to market risk is a function of asset liability management and receivables which could be used to secure funding by way of assignment if required. The Company also has lines of credit that it can access to
interest rate sensitivity assessment. The company is exposed to interest rate risk and liquidity risk, if the same is not managed properly. The meet liquidity needs.
company continuously monitors these risks and manages them through appropriate risk limits. The Asset Liability Management Committee Refer Note No 47 for the summary of maturity profile of undiscounted cash flows of the Company’s financial assets and financial liabilities as at
(ALCO) reviews market-related trends and risks and adopts various strategies related to assets and liabilities, in line with the company’s risk reporting period.
management framework. ALCO activities are in turn monitored and reviewed by a board sub-committee. In addition, the company has put in an
42.7 FOREIGN CURRENCY RISK
Asset Liability Management (ALM) support group which meets frequently to review the liquidity position of the company.
Foreign Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign currency
42.4 CONCENTRATION OF RISK/EXPOSURE
risk for the Company arise majorly on account of foreign currency borrowings. The Company manages this foreign currency risk by entering in
Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such counterparties to cross currency swaps and forward contract. When a derivative is entered in to for the purpose of being as hedge, the Company negotiates the
are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet contractual obligations terms of those derivatives to match with the terms of the hedge exposure. The Company’s policy is to fully hedge its foreign currency borrowings
is uniformly affected by changes in economic, political or other conditions. The Company is in retail lending business on pan India basis targeting at the time of drawdown and remain so till repayment.
primarily customers who either do not get credit or sufficient credit from the traditional banking sector. Vehicle Finance (consisting of new and
The Company holds derivative financial instruments such as Cross currency interest rate swap to mitigate risk of changes in exchange rate in
used Commercial Vehicles, Passenger Vehicles, Tractors, Construction Equipment and Trade advance to Automobile dealers) is lending against
foreign currency and floating interest rate.
security (other than for trade advance) of Vehicle/ Tractor / Equipment and contributes to 73% of the loan book of the Company as of March
31, 2020 (74% as of March 31, 2019). Hypothecation endorsement is made in favour of the Company in the Registration Certificate in respect The Counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for similar
of all registerable collateral. Portfolio is reasonably well diversified across South, North, East and Western parts of the country. Similarly, sub assets and liabilities in active markets or inputs that are directly or indirectly observable in market place.
segments within Vehicle Finance like Heavy Commercial Vehicles, Light Commercial Vehicles, Car and Muti Utility Vehicles, three wheeler and
165 166
42.8 Disclosure of Effects of Hedge Accounting 42.9 Collateral and other Credit Enhancements
Cash flow Hedge Although collateral can be an important mitigation of credit risk, it is the Company’s practice to lend on the basis of the customer’s ability to meet
the obligations out of cash flow resources other than placing primary reliance on collateral and other credit risk enhancements.
As at March 31, 2020 The Company obtains first and exclusive charge on all collateral that it obtains for the loans given. Vehicle Finance and Home Equity loans are
Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item secured by collateral at the time of origination. In case of Vehicle loans, Company values the vehicle either through proforma invoice (for new
Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance vehicles) or using registered valuer for used vehicles. In case of Home equity loans, the value of the property at the time of origination will be
Risk on Cash Instruments Instruments Hedging used as a basis for sheet arrived by obtaining two valuation reports from Company’s empanelled valuers.
Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge
Hypothecation endorsement is obtained in favour of the Company in the Registration Certificate of the Vehicle/ Tractor / Equipment funded under
(₹ in Lakhs) effectiveness (₹ in Lakhs)
the vehicle finance category.
Cross Currency Asset Liability Asset Liability September 25, 2020 11,420 (21,038) Borrowings
Immovable Property is the collateral for Home Equity loans. Security Interest in favour of the Company is created by Mortgage through deposit of
Interest rate swap 9 - 2,22,953 - to June 03, 2024
title deed which is registered wherever required by law.
In respect of Other loans, Home loans follow the same process as Home Equity and pledge is created in favour for the Company for loan against
securities.
Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in The Company does not obtain any other form of credit enhancement other than the above. 99% of the Company’s term loan are secured by way
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit of tangible Collateral.
recognised in Other and loss Reserve to Profit or Loss and Loss because of
Comprehensive Income (₹ in Lakhs) (₹ in Lakhs) the Reclassification Any surplus remaining after settlement of outstanding debt by way of sale of collateral is returned to the customer / borrower.
(₹ in Lakhs) Note : 43 EVENTS AFTER REPORTING DATE
Foreign exchange (9,232) - - NA
There have been no events after the reporting date that require disclosure in the financial statements.
risk and Interest rate risk
Note : 44
44.1 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 company ’s financial instruments that are not carried
at fair value in the balance sheet. This table does not include the fair values of non-financial assets and non-financial liabilities.
Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item ` in lakhs
Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance 31.03.2020 31.03.2019
Risk on Cash Instruments Instruments Hedging used as a basis for sheet Carrying Fair Carrying Fair
Flow Hedge (No. of Contracts) (₹ in Lakhs) Instrument recognising hedge Value Value Value Value
(₹ in Lakhs) effectiveness (₹ in Lakhs)
Financial Assets
Cross Currency Asset Liability Asset Liability November 07,2019 to 8,028 (8,415) Borrowings
Cash and Cash Equivalents 3,46,188 3,46,188 3,13,893 3,13,893
Interest rate swap 5 1 1,82,631 35,491 March 18, 2022
Bank balances Other than Cash and Cash Equivalents 3,49,722 3,49,722 53,592 53,592
Receivables
i) Trade Receivables 661 661 441 441
ii) Other Receivables 5,213 5,213 3,908 3,908
Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit Loans 55,40,273 54,70,335 52,62,227 52,44,731
recognised in Other and loss Reserve to Profit or Loss and Loss because of Investments 7,292 7,292 7,292 7,292
Comprehensive Income (₹ in Lakhs) (₹ in Lakhs) the Reclassification Other Financial Assets 41,327 41,327 13,512 13,512
(₹ in Lakhs)
Total Financial Assets 62,90,676 62,20,738 56,54,865 56,37,369
Foreign exchange 1,306 - - NA
Financial Liabilities
Payables -
i) Trade Payables 20,290 20,290 20,742 20,742
ii) Other Payables 9,949 9,949 12,894 12,894
Debt Securities 7,32,683 7,32,658 14,18,431 14,13,496
Borrowings (Other than Debt Securities) 43,27,308 43,23,357 32,12,375 32,10,512
Subordinated Liabilities 4,40,552 4,40,595 4,25,868 4,28,174
Other Financial Liabilities 38,621 38,621 21,207 21,207
Total Financial Liabilities 55,69,403 55,65,470 51,11,517 51,07,025
The Management assessed that cash and cash equivalents, bank balance other than Cash and cash equivalents, receivable, other financial assets, payables
and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments. The fair value of the investments
have been considered as the carrying value of these investments since these investments have been made in the subsidiaries of the Company.
167 168
Note: 44.1 Fair value of financial instruments not measured at fair value (Contd.) Note : 44.2 Fair value hierarchy (Contd.)
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values of financial assets Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2019 ` in lakhs
or liabilities disclosed under level 2 category. Fair value measurement using
i) T he fair value of loans have estimated by discounting expected future cash flows using discount rate equal to the rate near to the reporting date
Carrying Value Quoted price in Significant Significant
active markets observable unobservable
of the comparable product. (Level 1) inputs inputs
ii) T he fair value of debt securities, borrowings other than debt securities and subordinated liabilities have estimated by discounting expected (Level 2) (Level 3)
future cash flows discounting rate near to report date based on comparable rate / market observable data. Assets measured at Fair value
FVOCI Equity Instruments - - - -
iii) Derivatives are fair valued using observable inputs / rates.
Derivative financial instruments 8,869 - 8,869 -
Assets for which fair values are disclosed
Note : 44.2 Fair value hierarchy Loans 52,62,227 52,44,731
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities Investment Properties * 47 - - 287
Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2020 There have been no transfers between different levels during the period.
` in lakhs * Fair value of investment property is calculated based on valuation given by external independent valuer.
Fair value measurement using
Carrying Value Quoted price in Significant ` in lakhs
Significant
active markets observable unobservable
(Level 1) inputs inputs Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2019 ` in lakhs
(Level 2) (Level 3) Fair value measurement using
Assets measured at Fair value Carrying Value Quoted price in Significant Significant
FVOCI Equity Instruments - - - - active markets observable unobservable
Derivative financial instruments 11,420 - 11,420 - (Level 1) inputs inputs
(Level 2) (Level 3)
Assets for which fair values are disclosed
Liabilities measured at Fair value
Loans 55,40,273 54,70,335
Investment Properties * 14 - - 299
Debt Securities 14,18,431 14,13,496
There have been no transfers between different levels during the period. Borrowings (Other than Debt Securities) 32,12,375 32,10,512
* Fair value of investment property is calculated based on valuation given by external independent valuer. Subordinated Liabilities 4,25,868 4,28,174
There have been no transfers between different levels during the period.
Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2020 ` in lakhs
Fair value measurement using Note : 44.3 Summary of Financial assets and liabilities which are recognised at amortised cost
` in lakhs
Carrying Value Quoted price in Significant Significant Particulars As at As at
active markets observable unobservable 31.03.2020 31.03.2019
(Level 1) inputs inputs Financial Assets
(Level 2) (Level 3)
Cash and Cash Equivalents 3,46,188 3,13,893
Liabilities measured at Fair value
Bank balances other than Cash and Cash Equivalents 3,49,722 53,592
Derivative financial instruments - - - -
Loans 55,40,273 52,62,227
Debt Securities 7,32,683 - 7,32,658
Borrowings (Other than Debt Securities) 43,27,308 - 43,23,357 Other Financial Assets 41,327 13,512
Subordinated Liabilities 4,40,552 - 4,40,595 Financial Liabilities
Debt Securities 7,32,683 14,18,431
There have been no transfers between the level 1 and level 2 during the period.
Borrowings (Other than Debt Securities) 43,27,308 32,12,375
Subordinated Liabilities 4,40,552 4,25,868
Other Financial liabilities 38,621 21,207
Note : 44.4 Refer Note 13 for sensitivity analysis for investment property, whose fair value is disclosed under the level 3 category.
169 170
Note : 45 MATURITY ANALYSIS Note : 45 MATURITY ANALYSIS (Contd.) ` in lakhs
Maturity
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled. Amount Within 12 After 12
months months
` in lakhs
Maturity As on March 31, 2019
Amount Within 12 After 12 Financial Assets
months months
Cash and Cash Equivalents 3,13,893 3,13,893 -
Financial Assets Bank balances Other than Cash and Cash Equivalents 53,592 19,682 33,910
Cash and Cash Equivalents 3,46,188 3,46,188 - Derivative financial instruments 8,869 7,229 1,640
Bank balances Other than Cash and Cash Equivalents 3,49,722 3,14,752 34,970 Receivables
Derivative financial instruments 11,420 1,711 9,709 i) Trade Receivables 441 441 -
Receivables
ii) Other Receivables 3,908 3,908 -
i) Trade Receivables 661 661 -
Loans 52,62,227 16,41,911 36,20,316
Investments 7,292 - 7,292
Loans 55,40,273 12,28,603 43,11,670
Investments 7,292 - 7,292 Other Financial Assets 13,512 4,205 9,307
Other Financial Assets 41,327 13,023 28,304 Total Financial Assets 56,63,734 19,91,269 36,72,465
Total Financial Assets 63,02,096 19,10,151 43,91,945 Non- Financial Assets
Non- Financial Assets Current tax assets (Net) 14,639 - 14,639
Current tax assets (Net) 15,208 - 15,208
Deferred tax assets (Net) 45,300 - 45,300
Deferred tax assets (Net) 52,083 - 52,083
Investment Property 14 - 47
Investment Property 14 - 14
Property, Plant and Equipment 14,286 - 14,253
Property, Plant and Equipment 25,599 - 25,599
Intangible assets under development 1,026 - 1,026 Intangible assets under development 1,310 - 1,310
Other Intangible assets 1,747 - 1,747 Other Intangible assets 1,976 - 1,976
Other Non-Financial Assets 1,531 - 1,531 Other Non-Financial Assets 1,371 1,073 298
Total Non- Financial Assets 97,208 - 97,208 Total Non- Financial Assets 78,896 1,073 77,823
Derivative financial instruments - - -
Payables
i) Trade Payables 20,290 20,290 - Payables -
ii) Other Payables 9,949 9,949 - i) Trade Payables 20,742 20,742 -

Debt Securities 7,32,683 4,10,141 3,22,542 ii) Other Payables 12,894 12,894 -
Borrowings (Other than Debt Securities) 43,27,308 11,89,717 31,37,591 Debt Securities 14,18,431 9,59,024 4,59,407
Subordinated Liabilities 4,40,552 52,023 3,88,529 Borrowings (Other than Debt Securities) 32,12,375 8,65,072 23,47,303
Other Financial Liabilities 38,621 29,023 9.598
Subordinated Liabilities 4,25,868 47,164 3,78,704
Total Financial Liabilities 55,69,403 17,11,143 38,58,260
Other Financial Liabilities 21,207 21,128 79
Non-Financial Liabilities
Provisions 9,076 9,076 - Total Financial Liabilities 51,12,358 19,26,024 31,86,334
Other Non-Financial Liabilities 3,641 1,663 1,978 Non-Financial Liabilities

Total Non-Financial Liabilities 12,717 10,739 1,978 Provisions 7,402 7,402 -
Other Non-Financial Liabilities 5,296 3,211 2,085
Total Non-Financial Liabilities 12,698 10,613 2,085
171 172
Note : 47 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES (Contd.)
Note : 46 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
` in lakhs As at March 31, 2019 ` in lakhs
Particulars 01.04.2019 Cash flows Exchange Other 31.03.2020 Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
Difference 1 month months months months years years 5 years
Liabilities 50,56,674 4,44,719 12,623 (13,473) 55,00,543 Financial Assets
Cash and Cash Equivalents 87,458 2,29,834 - - - - - 3,17,292
` in lakhs
Particulars 01.04.2018 Cash flows Exchange Other 31.03.2019 Bank Balances other than 370 6,810 3,997 11,702 22,226 2,172 19,394 66,671
Difference Cash and Cash Equivalents
Liabilities 38,33,033 12,19,933 13,779 (10,071) 50,56,674
Derivative financial instruments - - - 7,229 1,640 - - 8,869
(i) Others column represents the effect of interest accrued but not paid on borrowing, amortisation of processing fees etc Receivables
(ii) Liabilities represents of Debt securities, Borrowings (other than debt securities) and Subordinated Liabilities i) Trade Receivables 441 - - - - - - 441
ii) Other Receivables 3,908 - - - - - - 3,908
Note : 47 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES
Loans 3,48,886 4,01,295 5,55,041 10,37,025 28,11,745 8,93,363 12,75,688 73,23,043
As at March 31, 2020 ` in lakhs
Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total Investments - - - - - - 7,292 7,292
1 month months months months years years 5 years Other Financial Assets - 1,423 1,006 1,775 5,452 1,051 1,723 12,430
Financial Assets Total Undiscounted 4,41,063 6,39,362 5,60,044 10,57,731 28,41,063 8,96,586 13,04,097 77,39,946
Cash and Cash Equivalents 3,02,482 41,302 - - - - - 3,43,784
financial assets
Bank Balances other than 1,966 13,029 3,02,688 6,259 22,384 4,817 16,264 3,67,407
Cash and Cash Equivalents Financial Liabilities
Derivative financial instruments - - 1,711 - 7,816 1,893 - 11,420 Derivative financial instruments - - - - 841 - - 841
Receivables Payables
i) Trade Receivables 661 - - - - - - 661
(I) Trade Payables
Loans 1,91,707 1,15,874 2,96,355 11,97,025 34,84,077 13,32,617 15,83,534 82,01,189 i) Total outstanding dues of - - - - - - - -
Investments - - - - - - 7,292 7,292 micro and small enterprises
Other Financial Assets 615 585 4,244 7,539 18,952 9,839 11,038 52,812
ii) Total outstanding dues of 20,742 - - - - - - 20,742
Total Undiscounted 5,02,644 1,70,790 6,04,998 12,10,823 35,33,229 13,49,166 16,18,128 89,89,778
financial assets creditors other than micro
Financial Liabilities and small enterprises
Derivative financial instruments - - - - - - - - (II) Other Payables
Payables
i) Total outstanding dues of - - - - - - - -
(I) Trade Payables
i) Total outstanding dues of 70 - - - - - - 70 micro and small enterprises
micro and small enterprises ii) Total outstanding dues of 12,894 - - - - - - 12,894
ii) Total outstanding dues of 20,220 - - - - - - 20,220 creditors other than micro
creditors other than micro
and small enterprises
(II) Other Payables Debt Securities 1,35,795 1,85,058 3,04,085 3,85,148 4,18,809 95,999 19,429 15,44,323
i) Total outstanding dues of - - - - - - - - Borrowings (Other than 1,75,149 1,04,374 2,30,379 5,70,299 20,56,987 3,77,195 1,32,833 36,47,216
micro and small enterprises Debt Securities)
Subordinated Liabilities 1,366 31,953 8,427 31,516 1,98,024 1,42,836 2,31,807 6,45,929
and small enterprises Other Financial Liabilities 21,128 - - - 58 21 - 21,207
Debt Securities 30,772 1,90,142 9,348 2,05,289 3,07,560 54,811 2,926 8,00,848 Total Undiscounted 3,67,074 3,21,385 5,42,891 9,86,963 26,74,719 6,16,051 3,84,069 58,93,152
Borrowings (Other than 94,591 1,37,690 3,79,465 8,55,975 26,43,106 7,98,703 84,373 49,93,903 financial liabilities
Debt Securities)
Total net Undiscounted 73,989 3,17,977 17,153 70,768 1,66,344 2,80,535 9,20,028 18,46,794
Subordinated Liabilities 11,370 9,182 14,636 44,321 1,95,966 1,13,415 2,70,774 6,59,664
Other Financial Liabilities 24,573 864 1,309 2,614 8,983 2,044 - 40,387 financial assets/(liabilities)
financial liabilities
Total net Undiscounted 3,11,099 (1,67,088) 2,00,240 1,02,624 3,77,614 3,80,193 12,60,055 24,64,737
financial assets/(liabilities)
173 174
Note : 48 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES Note : 48 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES (Contd.)
Lease expenses relating to short term leases aggregated to Rs. 82.39 lakhs during the year ended March 31, 2020.
The Company has taken office premises on lease for its operations. Lease liabilities are recognised at weighted average incremental borrowing rate ranging from 8% to 12%.
The Company has taken office premises on lease for its operations.
T he Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted
from assigning and subleasing the leased assets and some contracts require the Company to maintain certain financial ratios. There are The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
several lease contracts that include extension and termination options and variable lease payments, which are further discussed below. obligations related to the lease liabilities as and when they fall due.
The Company has several lease contracts that includes extension and termination contracts. These options are negotiated by the
The Company also has certain leases of machinery with lease terms of 12 months or less. The Company applies the short-term lease’ Management to provide flexibility in managing the leased-asset portfolio and align with Company's business needs. Management
recognition exemptions for these leases. exercises significant judgement in determining whether these extension and termination are reasonably certain to be exercised. Also
Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included in Refer note 4B
Property, Plant and Equipment and the movements during the period:
RBI Disclosures
The regulatory disclosures provided in these financial statements are in accordance with the requirements of the RBI's notification
Other Disclosures on implementation of Ind AS dated March 13, 2020 (wherever applicable). The corresponding figures for the previous year ended
March 31, 2019 have been restated in line with this notification for comparability purposes.
(i) Movement in the carrying value of the Right to Use Asset for the year ended March 31, 2020 ` in lakhs
Particulars - Buildings Amount Note : 49 PURSUANT TO GUIDELINES ISSUED FOR SECURITISATION/ ASSIGNMENT 2006
Opening Balance 11,370 ` in lakhs
Depreciation charge for the Period (4,190) Particulars As at As at
31.03.2020 31.03.2019
Additions during the Period 4,084
Adjustment/Deletion (594) Note : 49 ASSETS DE-RECOGNISED
Closing Balance 10,670 a) On Securitisation
Number of Special Purpose Vehicle (SPV) sponsored for Securitisation transactions 29 35
Outstanding securitised Assets in books of SPV 4,93,815 5,79,896
(ii) Classification of current and non current liabilities of the lease liabilities as at March 31, 2020 ` in lakhs Total amount of exposure to comply with Minimum Retention Ratio (MRR)
Particulars Amount a) Off Balance Sheet Exposure
Current liabilities 5,057
First Loss - -
Non Current Liabilities 6,985
Others 47,553 46,574
Total Lease liabilities 12,042
b) On Balance Sheet Exposure
First Loss – Cash collateral 37,636 51,832
(iii) Movement in the carrying value of the Lease Liability for the period ended March 31, 2020 ` in lakhs Others - -
Particulars Amount i) Second Loss – Cash Collateral - -
Opening Balance 12,199 ii) Investment in PTC 30,806 32,132
Interest Expense 1,153
Amount of Exposures to Securitisation transactions Other than MRR Nil Nil
Lease Payments [Total Cash Outflow] (4,800)
Book value of Assets sold 9,53,016 11,54,307
Additions during the year 4,084
Adjustment/Deletion (594) * excludes interest collected from customers on securitised assets.
` in lakhs
Closing Balance 12,042
31.03.2020 31.03.2019
(iv) Contractual Maturities of Lease liability outstanding as at March 31, 2020 ` in lakhs Note : 49 ASSETS DE-RECOGNISED
Particulars Amount b) On Bilateral assignment
Less than one year 5,304 Number of Assignment Transactions 24 7
One to five Years 8,505 Outstanding Assigned Assets in books of Assignee* 5,24,803 1,69,976
More than Five years - Less: Collections not yet due to be remitted to Assignee# 12,217 2,858
Total 13,809 Outstanding securitised Assets as per books 5,12,585 1,67,118
Total amount of exposure
(v) The following are the amount recognised in the Profit or Loss statement ` in lakhs a) Off Balance Sheet Exposure
First Loss - -
Particulars Amount
Depreciation expense of right-of-use assets 4,190 Others - -
Interest expense on lease liabilities 1,153 b) On Balance Sheet Exposure
Expense relating to short-term leases (included in other expenses) 82 First Loss - Cash collateral - -
Expense relating to leases of low-value assets (included in other expenses) - Others 58,364 18,569
Variable lease payments (included in other expenses) - Book value of Assets sold 7,34,047 2,98,244
Total amount recognised in profit or loss 5,425 #excludes interest collected from customers on assigned assets
175 176
Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED FEBRUARY 22, 2007: Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED
` in lakhs FEBRUARY 22, 2007: (Contd.) ` in lakhs
SL Particulars Amount Amount SL Particulars Amount Amount
No. Outstanding Overdue No. Outstanding Overdue
As at 31.03.2020 As at As at
Liabilities: 31.03.2020 31.03.2019
(1) Loans and Advances availed by the NBFC inclusive of interest accrued thereon but not paid: (4) Break-up of Investments (net of provision for diminution in value):
(a) Debentures
Current Investments:
- Secured 5,74,418 -
- Unsecured 2,90,955 - I Quoted:
(other than falling within the meaning of public deposits) (i) Shares: (a) Equity - -
- Perpetual Debt Instrument 1,49,597 -
(b) Preference - -
(b) Deferred Credits - -
(c) Term Loans 41,81,750 - (ii) Debentures and Bonds - -
(d) Inter-Corporate Loans and Borrowings - - (iii) Units of Mutual Funds - -
(e) Commercial Paper 1,58,265 - (iv) Government Securities (Net of amortisation) - -
Other Loans 1,45,559 -
(v) Others - -
(Represents Working Capital Demand Loans and Cash Credit from Banks along with Interest
Accrued but Not Due on above) II Unquoted:
` in lakhs (i) Shares: (a) Equity - -

SL Particulars Amount Amount (b) Preference - -
No. Outstanding Overdue
As at 31.03.2019 (ii) Debentures and Bonds - -
Liabilities: (iii) Units of Mutual Funds - -
(1) Loans and Advances availed by the NBFC inclusive of interest accrued thereon but not paid: (iv) Government Securities - -
(a) Debentures
Long-term Investments:
- Secured 10,54,445 -
- Unsecured 2,81,689 - I Quoted:
(other than falling within the meaning of public deposits) (i) Shares: (a) Equity - -
- Perpetual Debt Instrument 1,44,179 - (b) Preference - -
(b) Deferred Credits - -
(ii) Debentures and Bonds - -
(c) Term Loans 30,40,430 -
(d) Inter-Corporate Loans and Borrowings - - (iii) Units of Mutual Funds - -
(e) Commercial Paper 3,63,986 - (iv) Government Securities (Net of amortisation) - -
Other Loans 1,71,945 -
(v) Others - -
(Represents Working Capital Demand Loans and Cash Credit from Banks along with Interest
Accrued but Not Due on above) II Unquoted:
(i) Shares: (a) Equity (Net of Provision for Diminution in Value of Investment) 7,292 7,292
` in lakhs (b) Preference - -
SL Particulars Amount Amount (ii) Debentures and Bonds - -
No. Outstanding Overdue
As at As at (iii) Units of Mutual Funds - -
31.03.2020 31.03.2019
(iv) Government Securities - -
(2) Break-up of Loans and Advances including Bills Receivables [other than those included in (3) below]: (v) Others - -
(including interest accrued)
- Investment in Pass Through Certificates - -
(a) Secured 13,18,806 11,94,458
(b) Unsecured 20,982 43,827 - Investment property 14 14
(3) Break up of Leased Assets and Stock on Hire and Other Assets counting towards AFC activities
(i) Lease Assets including Lease Rentals Accrued and Due: - -
(ii) Stock on Hire including Hire Charges under Sundry Debtors:
(a) Assets on hire - -
(b) Repossessed assets - -
(iii) Other Loans counting towards AFC Activities
(a) Loans where assets have been repossessed (Net) - -
(b) Loans other than (a) above 42,00,485 40,23,942
177 178
Note : 50 DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) - 2007 DATED
Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR
FEBRUARY 22, 2007: (Contd.)
` in lakhs (PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014:
Category Amount (Net of provision for Non-performing assets) i. Capital Adequacy Ratio
Secured Unsecured Total ` in lakhs
(5) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above 31.03.2020 31.03.2019
As at March 31, 2020 Tier I Capital 8,05,516 6,13,410
1. Related Parties * Tier II Capital 2,85,020 2,42,509
(a) Subsidiaries - 700 700
Total Capital 10,90,536 8,55,919
(b) Companies in the same Group - - -
Total Risk Weighted Assets 52,72,792 49,28,399
(c) Other Related Parties - 340 340
2. Other than Related Parties 55,19,291 19,942 55,39,233 Capital Ratios
Total 55,19,291 20,982 55,40,273 Tier I Capital as a Percentage of Total Risk Weighted Assets (%) 15.28% 12.45%
As at March 31, 2019 Tier II Capital as a Percentage of Total Risk Weighted Assets (%) 5.41% 4.92%
1. Related Parties * Total (%) 20.69% 17.37%
(a) Subsidiaries - 1,150 1,150 Amount of Subordinated Debt raised as Tier – II capital during the year 40,000 51,500
(b) Companies in the same Group - - -
Amount raised by issue of Perpetual Debt instruments during the year 5,000 30,600
(c) Other Related Parties - 340 340
2. Other than Related Parties 52,18,400 42,337 52,60,737 ii. Investments ` in lakhs
Total 52,18,400 43,827 52,62,227 Particulars As at As at
31.03.2020 31.03.2019
* Related Parties are as identified in Note 37 above. (1) Value of Investments
` in lakhs
Category Market value / Book Value (i) Gross Value of Investments
Break - up Value (Net of (a) In India 7,435 7,435
or Fair Value or Provisioning) (b) Outside India - -
Net Asset Value (ii) Provisions for Depreciation
(6) Investor Group-wise Classification of all Investments (Current and Long Term) in Shares (a) In India (129) (129)
and Securities (both Quoted and Unquoted) : (b) Outside India - -
As at March 31, 2020 (iii) Net Value of Investments
1. Related Parties * (a) In India 7,306 7,306
(b) Outside India - -
(a) Subsidiaries 6,490 6,490
(2) Movement of provisions held towards depreciation on investments.
(b) Companies in the Same Group - -
(i) Opening balance 129 129
(c) Other Related Parties 800 800 (ii) Add:Provisions made during the year - -
2. Other than Related Parties 2 2 (iii) Less:Reversal of provision during the year - -
Total 7,292 7,292 (iv) Closing balance 129 129
1. Related Parties * iii. Asset Liability Management
(a) Subsidiaries 6,490 6,490 Maturity pattern of certain items of assets and liabilities - As at March 31, 2020 ` in lakhs
(b) Companies in the Same Group - - Particulars 1-7 8-14 15-30 1 to 2 2 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More Total
(c) Other Related Parties 800 800 days days days months months months months years years than 5
2. Other than Related Parties 2 2 Years
Total 7,292 7,292 Liabilities
Borrowing from 27,178 4,780 40,245 22,412 73,890 2,69,063 7,22,468 23,66,850 7,33,032 67,390 43,27,308
` in lakhs Banks
Category Amount Outstanding
Market Borrowings 1,202 1,254 39,416 79,621 1,14,958 14,050 2,09,589 3,97,641 1,17,230 1,98,274 11,73,235
As at As at
31.03.2020 31.03.2019 Total 28,380 6,034 79,661 1,02,033 1,88,848 2,83,113 9,32,057 27,64,491 8,50,262 2,65,664 55,00,543
Assets
(7) Other Information
(i) Gross Non-Performing Assets Advances (Net of 10,229 4,506 29,448 28,751 41,202 2,29,955 8,84,512 25,52,100 8,78,563 8,81,007 55,40,273
a) With Related Parties * - - Provision for
b) With Others 2,16,331 1,43,851 Non Performing
(ii) Net Non-Performing Assets Assets)
a) With Related Parties * - - Investment (Net of - - - - - - - - - 7,306 7,306
b) With Others 1,26,502 89,210
Provision for
(iii) Assets Acquired in Satisfaction of Debt
Diminution in Value
a) With Related Parties * - -
b) With Others - - of Investments)
Total 10,229 4,506 29,448 28,751 41,202 2,29,955 8,84,512 25,52,100 8,78,563 8,88,313 55,47,579
* Related Parties are as identified in Note 37 above.
179 180
Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR
(PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.) (PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.)
v. Exposure to the Capital Market ` in lakhs
As at March 31, 2019 ` in lakhs Particulars As at As at
Particulars 1-7 8-14 15-30 1 to 2 2 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More Total 31.03.2020 31.03.2019
days days days months months months months years years than 5 (i) Direct investment in equity shares, convertible bonds, convertible debentures and units of - -
Years
equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt;
Liabilities
(ii) Advances against shares/bonds/debentures or other securities or on clean basis to individuals - -
Borrowing from 1,21,945 6,066 26,294 27,975 38,637 1,69,969 4,75,202 18,41,638 4,11,290 93,359 32,12,375
for investment in shares (including IPOs/ ESOPs), convertible bonds, convertible debentures,
Banks
and units of equity-oriented mutual funds;
Market Borrowings - 65,243 71,082 1,31,209 80,462 2,94,367 3,65,440 4,79,126 1,79,020 1,78,350 18,44,299
(iii) Advances for any other purposes where shares or convertible bonds or convertible debentures 741 1,659
Total 1,21,945 71,309 97,376 1,59,184 1,19,099 4,64,336 8,40,642 23,20,764 5,90,310 2,71,709 50,56,674
or units of equity oriented mutual funds are taken as primary security;
Assets
(iv) Advances for any other purposes to the extent secured by the collateral security of shares or - -
Advances (Net of 84,302 21,075 56,742 1,02,461 94,537 4,91,691 7,91,103 21,56,460 6,66,901 7,96,955 52,62,227
convertible bonds or convertible debentures or units of equity oriented mutual funds i.e.
Provision for
where the primary security other than shares/convertible bonds /convertible debentures /
Non Performing
units of equity oriented mutual funds' does not fully cover the advances;
Assets)
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of - -
Investment (Net of - - - - - - - - - 7,306 7,306
stock brokers and market makers;
Provision for
(vi) Loans sanctioned to corporates against the security of shares/bonds/ debentures or - -
Diminution in Value
other securities or on clean basis for meeting promoter's contribution to the equity of
of Investments)
new companies in anticipation of raising resources;
Total 84,302 21,075 56,742 1,02,461 94,537 4,91,691 7,91,103 21,56,460 6,66,901 8,04,261 52,69,533
(vii) Bridge loans to companies against expected equity flows/issues; - -
(viii) All exposures to Venture Capital Funds (both registered and unregistered) - -
Pending Disbursements 5,020 2,391
iv. Exposure to the Real Estate Sector, both Direct and Indirect Total Exposure 5,761 4,050
` in lakhs
Category As at As at
31.03.2020 31.03.2019 vi. Other Regulator Registration
(a) Direct Exposure (Net of Advances from Customers)
S. No. Regulator Registration no.
(i) Residential Mortgages -
Lending fully secured by mortgages on residential property that is or will be 1 Ministry of Company Affairs CIN: L65993TN1978PLC007576
occupied by the borrower or that is rented: 2 Reserve Bank of India Certificate of Registration dt. 09/06/2011, No. 07-00306
- individual housing loans upto ₹ 15 lakhs 1,71,278 1,70,835
- individual housing loans more than ₹ 15 lakhs 10,41,566 9,47,516 vii. Penalties levied by the above Regulators - Nil
(ii) Commercial Real Estate -
viii. Ratings assigned by Credit Rating Agencies
Lending secured by mortgages on commercial real estates (office buildings, retails
space, multipurpose commercial premises, multi-family residential buildings,
31.03.2020 31.03.2019
multi-tenanted commercial premises, industrial or warehouse space, hotels, Commercial paper & Non- convertible Debentures - Short Term ICRA A1+, ICRA A1+
land acquisition, development and construction etc.). CRISIL A1+, CRISIL A1+
- Fund Based 1,44,062 1,17,964 CARE A1+
- Non Fund based - - Working Capital Demand Loans ICRA A1+ ICRA A1+
(iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures - Cash Credit ICRA AA+ ICRA AA+
a. Residential - - Bank Term Loans ICRA AA+ ICRA AA+
b. Commercial Real Estate - - Non-Convertible Debentures – Long Term ICRA AA+, ICRA AA+,
(b) Indirect Exposure IND AA+ IND AA+
Fund based and non-fund based exposures on National Housing Bank (NHB) and - - Subordinated Debt ICRA AA+, ICRA AA+,
Housing Finance Companies (HFCs) CARE AA+, CARE AA+,
Total Exposure 13,56,906 12,36,315 CRISIL AA+, CRISIL AA+,
Note: IND AA+ IND AA+
The above summary is prepared based on the information available with the Company. Perpetual Debt ICRA AA, ICRA AA,
CARE AA, CARE AA,
IND AA IND AA
181 182
Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR Note : 51 A. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION RBI/2014-15/299 DNBR
(PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.) (PD) CC.NO.002/03.10.001/2014-15 DATED NOVEMBER 10, 2014: (Contd.)
ix. Concentration of Advances
` in lakhs
Particulars As at As at xiii. Movement of NPAs (Contd.)
31.03.2020 31.03.2019 ` in lakhs
Total Advances to twenty largest borrowers 29,582 24,299 Particulars As at As at
31.03.2020 31.03.2019
Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 0.53% 0.51%
(iv) Movement of provisions for NPAs (excluding provisions on standard assets)
x. Concentration of Exposures (a) Opening balance 54,641 50,702
` in lakhs (b) Provisions made during the year 50,152 24,355
Particulars As at As at (c) Write-off / write-back of excess provisions 14,964 20,416
31.03.2020 31.03.2019
(d) Closing balance 89,829 54,641
Total Exposure to twenty largest borrowers/customers 29,582 24,299
Percentage of Exposures to twenty largest borrowers /Customers to Total Exposure of the NBFC 0.53% 0.51%
on borrowers/customers.
xiv. Disclosure on Restructured Accounts ` in lakhs
xi. Concentration of NPAs Type of Restructuring asset classification details Standard Sub-standard Doubtful Loss Advances
` in lakhs Advances Advances Advances
Particulars As at As at Restructured loans as Number of borrowers - 96 - -
31.03.2020 31.03.2019 on April 1, 2019 Amount Outstanding - 1,021 - -
Total Exposure to top four NPA accounts 3,145 3,004 Provision thereon - 243 - -
Fresh Restructured during Number of borrowers 94 89 15 -
xii. Sector-wise NPAs the year Amount Outstanding 1,486 1,347 322 -
Provision thereon 193 283 68 -
Sl. Sector Percentage Percentage Upgradations to restructured Number of borrowers 71 - - -
No of NPAs to of NPAs to category Amount Outstanding 308 - - -
Total Total
Advances Advances Provision thereon 40 - - -
in that in that Restructured loans ceases to Number of borrowers - - -
sector as on sector as on attract higher provision or Amount Outstanding - - -
31.03.2020 31.03.2019 additional risk weight at the Provision thereon - - -
1. Agriculture & allied activities 100% 100% end of year
2. MSME - - Downgrade of restructured Number of borrowers - 83 4 -
3. Corporate borrowers - - accounts during the year Amount Outstanding - 1,287 37 -
4. Services - - Provision thereon - 347 14 -
Write-off of restructured Number of borrowers 8 15 - -
5. Unsecured personal loans - -
accounts during the year Amount Outstanding 96 166 - -
6. Auto loans 2.91% 1.79%
Provision thereon 23 37 - -
7. Other loans 6.39% 5.40% Restructured loans as Number of borrowers - 158 18 -
on March 31, 2020 Amount Outstanding - 2,415 357 -
xiii. Movement of NPAs
Provision thereon - 697 128 -
` in lakhs
Particulars 31.03.2020 31.03.2019
(i) Net NPAs to Net Advances(%) 2.26% 1.68%

(ii) Movement of Gross NPA xv. Customer Complaints
No. of Complaints
(a) Opening balance 1,43,851 1,47,627
Particulars 31.03.2020 31.03.2019
(b) Additions during the year 1,35,806 83,237
(c) Reductions during the year 63,326 87,013 (a) Pending as at beginning of the year 11 9
(d) Closing balance 2,16,331 1,43,851 (b) Received during the year 1,331 1,428
(c) Redressed during the year 1,334 1,426
(iii) Movement of Net NPA
(d) Pending as at end of the year 8 11
(a) Opening balance 89,210 96,924
Note: The above summary is prepared based on the information available with the Company and relied upon by the Auditors.
(b) Additions during the year 85,653 58,883
(c) Reductions during the year 48,361 66,597
(d) Closing balance 1,26,502 89,210
183 184
Note : 52. DISCLOSURE OF FRAUDS REPORTED DURING THE YEAR ENDED MARCH 31, 2020 VIDE DNBS. PD. CC NO. 256/ Note : 54. DISCLOSURE ON MORATORIUM – COVID 19 REGULATORY PACKAGE – ASSET CLASSIFICATION AND PROVISIONING
03.10.042/ 2011-12 DATED MARCH 02, 2012 FOR THE YEAR ENDED MARCH 31, 2020 IN PURSUANT TO THE NOTIFICATION VIDE: DOR.NO.BP.BC.63/21.04.048/2019-20 DATED
APRIL 17, 2020
There were 115 cases (March 31, 2019 - 180 cases) of frauds amounting to ₹668 lakhs (March 31, 2019 - ₹ 657 lakhs) reported during the
year. The Company has recovered an amount of ₹48 lakhs (March 31, 2019 - ₹ 125 lakhs). The un-recovered amounts are either pending ` in lakhs
settlement with the insurance companies or have been fully provided/ written off. Particulars Outstanding value of loans – Outstanding value of loans –
Moratorium extended Asset classification benefit extended
Note : 53. DISCLOSURE OF COMPARISON OF PROVISION AS PER IRAC NORMS AND ECL PURSUANT TO RBI CIRCULAR, VIDE
DNBS.PD.CC.NO.109/22.10.106/2019-20 DATED MARCH 13, 2020 FOR THE YEAR ENDED MARCH 31, 2020. Stage I 41,54,811 3,68,118
Stage II 1,88,056 1,88,056
` in lakhs
Stage III 26,786 -
Asset Asset Gross carrying Loss allowance Net carrying Provisions Difference
classification classification amount as per (provision) amount required as between
Note : 55. PRIOR PERIOD INFORMATION
as per RBI as per Ind AS Ind As as required per IRACP Ind AS 109
Norms 109 under norms provisions and Prior period figures have been regrouped, wherever necessary, to conform to the current period presentation.
Ind AS 109 IRACP norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)

Performing
Assets
Standard Stage 1 52,74,174 39,122 52,35,052 35,282 3,840
Stage 2 2,02,066 23,346 1,78,720 8,916 14,429 As per our report of even date
Non Performing
Assets (NPA) ICAI Firm Regn No.101049W/E300004
Substandard Stage 3 1,17,231 42,974 74,257 11,668 31,307
Doubtful - Stage 3 37,017 15,814 21,203 8,509 7,305 Partner Managing Director Chairman
upto 1 year Membership No: 083673
1 - 3 years Stage 3 38,433 17,689 20,744 14,240 3,449
More than 3 Stage 3 20,886 10,588 10,298 12,004 (1,416) Place : Chennai Company Secretary Chief Financial Officer
years
Loss Stage 3 2,764 2,764 - 2,764 -
Subtotal for NPA 2,16,331 89,829 1,26,502 49,185 40,645
Other items such Stage 1 84,535 131 84,404 - 131
as guarantees,
loan commitment Stage 2 - - - - -
etc., which are in
the scope of Stage 3 - - - - -
Ind AS 109 but
not covered under
Income Recognition,
Asset Classification
and Provisioning
(IRACP) norms
Subtotal 84,535 131 84,404 - 131
Total Stage 1 53,58,709 39,253 53,19,456 35,282 3,971
Stage 2 2,02,066 23,346 1,78,720 8,916 14,429
Stage 3 2,16,331 89,829 1,26,502 49,185 40,645
Total 57,77,106 1,52,428 56,24,678 93,383 59,045
185 186
Independent Auditor’s Report Independent Auditor’s Report (Contd.)

To the Members of Cholamandalam Investment and Finance Company Limited Key audit matters How our audit addressed the key audit matter
Impairment of Financial Assets based on Expected Credit Loss (‘ECL’) (as described in Note 5.3 of the Consolidated Ind AS
Report on the Audit of the Consolidated Ind AS Financial Statements Financial Statements)
Opinion Financial instruments, which include loans to customers, • Understood the Company’s key credit processes comprising
We have audited the accompanying Consolidated Ind AS financial statements of Cholamandalam Investment and Finance Company represents a significant portion of the total assets of the Company. granting, recording and monitoring of loans as well as
Limited (hereinafter referred to as “the Holding Company”), its subsidiaries (the Holding Company and its subsidiaries together referred The Company has loans aggregating Rs 56,91,870lakhs as at impairment provisioning.
to as “the Group”) its associate comprising of the consolidated Balance sheet as at March 31 2020, the consolidated Statement of Profit March 31, 2020. • Read and assessed the Company’s impairment provisioning
and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the consolidated Statement of Changes in Estimates regarding the impairment provision against financial policy as per Ind AS 109;
Equity for the year then ended, and notes to the Consolidated Ind AS financial statements, including a summary of significant accounting assets are based on the expected credit loss model developed by
policies and other explanatory information (hereinafter referred to as “the Consolidated Ind AS financial statements”). •
Understood the Company’s Expected Credit Loss (‘ECL’)
the Company based on the guiding principles prescribed under methodology, the underlying assumptions and performed
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Ind AS Ind AS 109. sample tests to assess the staging of outstanding exposures;
financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and
As explained in the notes to the financial statements for the • Assessed the Exposure at Default used in the impairment
give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the
year ended March 31, 2020, the impairment provision based calculations on a test basis;
Group, its associate as at March 31, 2020, their consolidated profit including other comprehensive income, their consolidated cash flows
on the expected credit loss model requires the management of
and the consolidated statement of changes in equity for the year ended on that date. • Obtained an understanding of the basis and methodology
the Company to make significant judgments in connection with
Basis for Opinion adopted by management to determine 12 month and life-time
related computation. These include:
probability of defaults for various homogenous segments and
We conducted our audit of the Consolidated Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified (a) Segmentation of the loan portfolio into homogenous pool of performed test checks;
under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for borrowers;
the Audit of the Consolidated Ind AS Financial Statements’ section of our report. We are independent of the Group and associates in • Obtained an understanding of the basis and methodology
(b) Identification of exposures where there is a significant increase adopted by management to determine Loss Given Defaults
accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that
in credit risk and those that are credit impaired; for various homogenous segments based on past recovery
are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have (c) Determination of the 12 month and life-time probability of experience, qualitative factors etc., and performed test checks;
obtained is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Ind AS financial statements. default for each of the segments identified; and • Assessed the items of loans, credit related contingent items as
Emphasis of Matter (d) Loss given default for various exposures based on past trends at the reporting date which are considered in the impairment
/ experience, management estimates etc., computation as at the reporting date;
We draw attention to Note 2.2 to the accompanying Consolidated Ind AS financial statements, which describes the impact of COVID-19
pandemic, and its possible consequential implications on the Company’s operations and financial metrics, including the Company’s Additionally, the economic and business consequences of •
Assessed the data used in the impairment computation
estimates of impairment of loans and that such estimates may be affected by the severity and duration of the pandemic. Our opinion the COVID 19 pandemic as described in Note 2.2 & 2.3 to the (including the data integrity of information extracted from the
is not modified in respect of this matter. Consolidated Ind AS financial statements, slowdown of economic Company’s IT systems);
activity, moratoriums granted to borrowers, the related regulatory •
Enquired with the management regarding significant
Key Audit Matters
directives and also the applicable accounting directions, further judgments and estimates involved in the impairment
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Ind
affect loan loss provisioning under the ECL approach. computation and additional management overlay provision
AS financial statements for the financial year ended March 31, 2020. These matters were addressed in the context of our audit of the
Note 5.3 read with note 2.3 to the Consolidated Ind AS Financial arising from the effects of the COVID-19 pandemic, and
Consolidated Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. Statements explains the various matters that the management evaluated the reasonableness thereof
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the has considered for developing this expected credit loss model. • Assessed analytical reviews of disaggregated data to observe
responsibilities described in the Auditor’s responsibilities for the audit of the Consolidated Ind AS financial statements section of our As at March 31, 2020, the Company has made a provision for any unusual trends warranting additional audit procedures;
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to impairment loss aggregating Rs. 1,52,297 Lakhs against the loans and
our assessment of the risks of material misstatement of the Consolidated Ind AS financial statements. The results of audit procedures outstanding. Due to the significance of the judgments used in •
Read the financial statement disclosures in respect of
performed by us, including those procedures performed to address the matters below, provide the basis for our audit opinion on the
both classification of loans into various stages as well as the impairment losses on financial assets, including the specific
accompanying Consolidated Ind AS financial statements.
computation of expected credit losses on such financial assets as disclosures made with regard to the impact of COVID-19 on
per Ind AS 109, this has been considered as key audit matter. the ECL estimation.
187 188

Key audit matters How our audit addressed the key audit matter Key audit matters How our audit addressed the key audit matter
Audit in an Information Technology (IT) enabled environment - including considerations on exceptions identified in IT Pending litigations with tax authorities (as described in Note 39 of the Ind AS Financial Statements)
environment
• Considered the submissions made to appellate authorities
The Company has information technology applications which In assessing the reliability of electronic data processing, we and expert opinions obtained by the Company from external
are used across various class of transactions in its operations included specialized IT auditors in our audit team. Our audit tax / legal experts (wherever applicable) which form the basis
including automated and IT dependent manual controls that are procedures focused on the IT infrastructure and applications for management’s assessment;
embedded in them. relevant to financial reporting: • Assessed the positions taken by the management in the light
Due to the pervasive nature and complexity of the Company’s IT • Assessing the information systems and the applications that is of the aforesaid information and based on the examination of
environment, we place significant emphasis on the information available in the Company in two phases: (i) IT General Controls the matters by our tax experts.
systems, the controls, and process around such information and (ii) Application level embedded controls; •
Read the disclosures included in the Consolidate Ind AS
systems and the usage of information from such systems for the • The aspects covered in the IT systems General Control audit Financial Statements in this regard.
purpose of financial reporting by the management for our audit. were (i) User Access Management (ii) Change Management
Accordingly, this has been considered as a key audit matter. (iii) Other related ITGCs; - to understand the design and the Other Information
operating effectiveness of such controls in the system;
The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the
•
Understanding of the changes that were made to the IT information included in the Annual report, but does not include the Consolidated Ind AS financial statements and our
landscape during the audit period and assessing changes that auditor’s report thereon.
have impact on financial reporting;
Our opinion on the Consolidated Ind AS financial statements does not cover the other information and we do not express
• Performed tests of controls (including over compensatory
controls wherever applicable) on the IT Application controls
any form of assurance conclusion thereon.
and IT dependent manual controls in the system. In connection with our audit of the Consolidated Ind AS financial statements, our responsibility is to read the other
• Wherever applicable, we also assessed through direct sample information and, in doing so, consider whether such other information is materially inconsistent with the consolidated
tests, the information produced from these systems which financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on
were relied upon for our audit. the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Pending litigations with tax authorities (as described in Note 40(a) of the Consolidated Ind AS Financial Statements)
The Company operates in a complex tax environment and is In assessing the exposure of the Company for the tax litigations,
Responsibilities of Management for the Consolidated Ind AS Financial Statements
required to discharge direct and indirect tax obligations under we have performed the following procedures: The Holding Company’s Board of Directors is responsible for the preparation and presentation of these Consolidated Ind AS
various legislations such as Income Tax Act, 1961, the Finance Act, • Obtained an understanding of the process laid down by the financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position,
1994 Goods and Services Tax Acts and VAT Acts of various states, management for performing their assessment taking into consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated
as may be applicable consideration past legal precedents, changes in laws and statement of changes in equity of the Group including its associate in accordance with the accounting principles generally
The tax authorities under these legislations have raised certain regulations, expert opinions obtained from external tax / legal accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the
tax demands on the Company in respect of the past periods. The experts (as applicable); Companies (Indian Accounting Standards) Rules, 2015, as amended. The respective Board of Directors of the companies
Company has disputed such demands and has appealed against • Assessed the processes and entity level controls established included in the Group and of its associate are responsible for maintenance of adequate accounting records in accordance
them at appropriate forums. As at March 31, 2020 the Company by the Company to ensure completeness of information with with the provisions of the Act for safeguarding of the assets of the Group and of its associate and for preventing and
has an amount of Rs. 67,708 Lakhs. pertaining to various pending respect to tax litigations; detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments
tax litigations. and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal
•
Along with our tax experts, we undertook the following
Under Ind AS, the Company is required to perform an assessment of procedures: financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
the probability of economic outflow on account of such disputed
• Read communications with relevant tax authorities including
relevant to the preparation and presentation of the Consolidated Ind AS financial statements that give a true and fair view
tax matters and determine whether any particular obligation
notices, demands, orders, etc., relevant to the pending and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation
needs to be recorded as a provision in the books of account or to litigations, as made available to us by the management; of the Consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid.
be disclosed as a contingent liability. Considering the significant
degree of judgement applied by the management in making such • Tested the accuracy of disputed amounts from the underlying In preparing the Consolidated Ind AS financial statements, the respective Board of Directors of the companies included
assessments and the resultant impact on the financial statements, communications received from tax authorities and responses in the Group and of its associate are responsible for assessing the ability of the Group and of its associate to continue as a
filed by the Company; going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
we have considered it to be a key audit matter.
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those respective Board of Directors of the companies included in the Group and of its associate are also responsible for
overseeing the financial reporting process of the Group and of its associate.
189 190

Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Consolidated Ind AS financial statements for the financial year ended March 31, 2020 and
Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS financial statements as a whole
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered public interest benefits of such communication.
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these Consolidated Ind AS financial statements. Other Matter
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism The Consolidated Ind AS financial statements include the Group’s share of net loss of Rs. 42 lakhs for the year ended
throughout the audit. We also: March 31, 2020, as considered in the Consolidated Ind AS financial statements, in respect of one associate, whose financial
statements, other financial information have not been audited and whose unaudited financial statements, other unaudited
• Identify and assess the risks of material misstatement of the Consolidated Ind AS financial statements, whether due financial information have been furnished to us by the Management. Our opinion, in so far as it relates amounts and
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is disclosures included in respect of this associate, and our report in terms of sub-sections (3) of Section 143 of the Act in so far
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting as it relates to the aforesaid associate, is based solely on such unaudited financial statements and other unaudited financial
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, information. In our opinion and according to the information and explanations given to us by the Management, these
misrepresentations, or the override of internal control. financial statements and other financial information are not material to the Group.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate Our opinion above on the Consolidated Ind AS financial statements, and our report on Other Legal and Regulatory
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and
the Holding Company has adequate internal financial controls with reference to financial statements in place and the the reports of the other auditors and the financial statements and other financial information certified by the Management.
operating effectiveness of such controls.
Report on Other Legal and Regulatory Requirements
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant necessary for the purposes of our audit of the aforesaid Consolidated Ind AS financial statements;
doubt on the ability of the Group and its associate to continue as a going concern. If we conclude that a material (b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated financial statements have been kept so far as it appears from our examination of those books and reports of the other
Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on auditors;
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and its associate to cease to continue as a going concern. (c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of Other
Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity
• Evaluate the overall presentation, structure and content of the Consolidated Ind AS financial statements, including dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the
the disclosures, and whether the Consolidated Ind AS financial statements represent the underlying transactions and Consolidated Ind AS financial statements;
events in a manner that achieves fair presentation.
(d) In our opinion, the aforesaid Consolidated Ind AS financial statements comply with the Accounting Standards specified
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
within the Group and its associate of which we are the independent auditors, to express an opinion on the Consolidated
Ind AS financial statements. We are responsible for the direction, supervision and performance of the audit of the (e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2020
financial statements of such entities included in the consolidated financial statements of which we are the independent taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors who are
auditors. For the other entities included in the Consolidated Ind AS financial statements, which have been audited by appointed under Section 139 of the Act, of its subsidiary companies and associate company, none of the directors of the
other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits Group’s companies and its associate, incorporated in India, is disqualified as on March 31, 2020 from being appointed
carried out by them. We remain solely responsible for our audit opinion. as a director in terms of Section 164 (2) of the Act;
We communicate with those charged with governance of the Holding Company and such other entities included in the (f ) With respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting
Consolidated Ind AS financial statements of which we are the independent auditors regarding, among other matters, the with reference to these Consolidated Ind AS financial statements of the Holding Company and its subsidiary companies
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control and associate company, incorporated in India, refer to our separate Report in “Annexure 2” to this report;
that we identify during our audit. (g) The provisions of Section 197 read with Schedule V of the Act are not applicable to the Holding Company, its subsidiaries
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements and associate incorporated in India for the year ended March 31, 2020;
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
191 192
Independent Auditor’s Report (Contd.) Annexure 1 to the Independent Auditor’s Report of even date on
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
the Consolidated Ind AS Financial Statements of Cholamandalam
(Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the
explanations given to us:
Investment and Finance Company Limited
i. The Consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidated
financial position of the Group and its associate in its consolidated Ind AS financial statements – Refer Note 40(a) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
to the Consolidated Ind AS financial statements; (“the Act”)
ii. Provision has been made in the Consolidated Ind AS financial statements, as required under the applicable In conjunction with our audit of the consolidated Ind AS financial statements of Cholamandalam Investment and Finance Company Limited
law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative as of and for the year ended March 31, 2020, we have audited the internal financial controls over financial reporting of Cholamandalam
contracts – Refer (a) Note 9 and 11 to the Consolidated Ind AS financial statements in respect of such items as it Investment and Finance Company Limited (hereinafter referred to as the “Holding Company”) and its subsidiary companies, which are
relates to the Group and its associate and (b) the Group’s share of net loss in respect of its associate; companies incorporated in India, as of that date.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Management’s Responsibility for Internal Financial Controls
Protection Fund by the Holding Company, its subsidiaries and associate, incorporated in India during the year
ended March 31, 2020. The respective Board of Directors of the Holding Company, its subsidiary companies, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
For S.R. BATLIBOI & ASSOCIATES LLP established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit
Chartered Accountants of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities
ICAI Firm Registration Number: 101049W/E300004 include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring
the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets,
Partner the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation
Membership Number: 083673 of reliable financial information, as required under the Act.
UDIN: 20083673AAAAAZ1465
Place of Signature : Chennai Auditor’s Responsibility
Date : June 03, 2020
Our responsibility is to express an opinion on the company's internal financial controls over financial reporting with reference to these
consolidated Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, both, issued by Institute of
Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these
consolidated Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial
reporting with reference to these consolidated Ind AS financial statements and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference
to these consolidated Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the Consolidated Ind AS financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the internal
financial controls over financial reporting with reference to these consolidated Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with Reference to these Consolidated Ind AS Financial Statements
A company's internal financial control over financial reporting with reference to these consolidated Ind AS financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial
193 194
Annexure 1 to the Independent Auditor’s Report of even date on Consolidated Ind AS Balance Sheet
the Consolidated Ind AS Financial Statements of Cholamandalam Note No. As at
` in lakhs
As at
Investment and Finance Company Limited (Contd.)

ASSETS
March 31, 2020 March 31, 2019
Financial Assets
Cash and Cash Equivalents 7 3,49,514 3,16,435
reporting with reference to these consolidated Ind AS financial statements includes those policies and procedures that (1) pertain to the Bank balances other than Cash and Cash Equivalents 8 3,50,560 54,411
Derivative financial instruments 9 11,420 8,869
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
Receivables 10
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance i) Trade Receivables 1,503 4,128
ii) Other Receivables 5,052 3,908
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with Loans 11 55,39,573 52,61,077
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection Investments
i) Associate 47 2,477 2,519
of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. ii) Others 12 793 1,631
Other Financial Assets 13 43,913 14,976
Inherent Limitations of Internal Financial Controls Over Financial Reporting with Reference to these Consolidated Ind AS Financial 63,04,805 56,67,954
Statements Non- Financial Assets
Current tax assets (Net) 15,947 15,101
Because of the inherent limitations of internal financial controls over financial reporting with reference to these consolidated Ind AS Deferred tax assets (Net) 14 52,747 46,012
Investment property 15 14 14
financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to Property, plant and equipment 16 26,236 14,497
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting Intangible assets under development 1,060 1,397
Other intangible assets 17 2,067 2,220
with reference to these consolidated Ind AS financial statements to future periods are subject to the risk that the internal financial control Other non-financial assets 18 2,027 1,817
over financial reporting with reference to these consolidated Ind AS financial statements may become inadequate because of changes in 1,00,098 81,058
TOTAL ASSETS 64,04,903 57,49,012
conditions, or that the degree of compliance with the policies or procedures may deteriorate. LIABILITIES AND EQUITY
Opinion Derivative financial instruments 9 - 841
Payables
In our opinion, the Holding Company and its subsidiary companies, which are companies incorporated in India, have, maintained in (I) Trade payables
all material respects, adequate internal financial controls over financial reporting with reference to these consolidated Ind AS financial i) Total outstanding dues of micro and small enterprises 70 -
ii Total outstanding dues of creditors other than micro and small enterprises 21,977 23,145
statements and such internal financial controls over financial reporting with reference to these consolidated Ind AS financial statements (II) Other payables
were operating effectively as at March 31,2020, based on the internal control over financial reporting criteria established by the Holding i) Total outstanding dues of micro and small enterprises - -
ii) Total outstanding dues of creditors other than micro and small enterprises 9,949 12,894
Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Debt securities 19 7,32,683 14,18,431
Over Financial Reporting issued by the Institute of Chartered Accountants of India. Borrowings(Other than Debt securities) 20 43,27,308 32,12,375
Subordinated liabilities 21 4,40,552 4,25,868
Other financial liabilities 22 39,485 21,676
55,72,024 51,15,230
Provisions 23 9,151 7,466
Other Non-Financial Liabilities 24 3,742 5,445
For S.R. BATLIBOI & ASSOCIATES LLP
12,893 12,911
Chartered Accountants Equity
ICAI Firm Registration Number: 101049W/E300004 Equity share capital 25 16,398 15,642
Other equity 26 8,03,588 6,05,229
per Subramanian Suresh Total Equity 8,19,986 6,20,871
Partner TOTAL LIABILITIES AND EQUITY 64,04,903 57,49,012
Membership Number: 083673
Place of Signature : Chennai The accompanying notes are integral part of the financial statements.
Date : June 3, 2020 As per our report of even date


195 196
` in lakhs
` in lakhs
15,640
3
15,643
755
16,398
application Reserve Reserve Redemption Premium Reserve earnings payments valuation of portion of attributable
M.M. Murugappan
Chairman
D. Arul Selvan
Chief Financial Officer
6,05,229
1,05,372
(379)
(6,595)
(20,033)
1,20,915
(921)
-
8,03,588
4,96,906
1,19,806
(466)
250
985
(12,252)
-
6,05,229
Consolidated Ind AS Statement of Profit and Loss
to equity
holders
Total
hedge
` in lakhs
(5,971)
869
-
-
-
-
-
(921)
-
-
(1,208)
(7,179)
(2,077)
(1,208)
Note No. Year ended Year ended
cashflow
Effective
comprehensive income
31.03.2020 31.03.2019
pending
Items of other
- Interest Income 27A 8,12,465 6,57,622
- Net gain on derecognition of financial instruments under amortised cost category 24,727 8,670
-
561
(63)
1,180
- Fee & Commission income 27B 24,870 23,701
Investment
-
-
(624)
-
-
(619)
-
-
561
Arun Alagappan
P. Sujatha
Company Secretary
Managing Director
- Net gain on Fair value change on financial instrument 27C 1,569 6,334
Fair
- Sale of Services 27D 7,570 12,435
Total Revenue from operations (I) 8,71,201 7,08,762
- Other income (II) 28 62 2,121
Total Income (III) = (I) + (II) 8,71,263 7,10,883
Share based
1,156
815
-
-
1,861
3,017
1,046
1,861
-
-
Expense
reserve

- Finance costs 29 4,59,170 3,58,814
Balances as on March 31, 2019
Balances as on March 31, 2020

- Impairment of Financial Instruments 30 89,735 31,134
- Employee benefits expense 31 70,032 60,468
- Depreciation and amortisation expense 15, 16 & 17 11,125 5,699
1,05,372
(379)
-
76,848
89,808
53,760
(20,033)
-
(72,000)
1,19,806
(466)
-
(12,252)
(84,000)
76,848
- Other expenses 32 82,379 71,615
Retained
Total Expenses (IV) 7,12,441 5,27,730
Consolidated Ind AS Statement of Changes in Equity

Profit before tax (V) = (III) - (IV) 1,58,822 1,83,153
Balances as on April 1, 2018

Add: Issue of share capital
Add: Issue of share capital
Account
Tax expense/(benefit)
- Current tax
- Pertaining to profit for the current period 56,791 71,532
50,000
-
-
-
60,000
2,50,967
1,90,967
2,50,967
-
-
3,00,967
- Adjustment of tax relating to earlier periods 3 1,596
General
- Deferred tax (3,386) (9,669)
Net tax expense (VI) 53,408 63,459
Profit for the period - A = (V) - (VI) 1,05,414 1,19,694
Share of loss from associate (net of tax) 47 (42) (35)
1,19,749
-
-
170
-
-
1,66,850
2,85,678
1,66,680
1,66,850
-
-
Profit for the period 1,05,372 1,19,659
Securities
Reserve and Surplus
Other Comprehensive income:
i) Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Re-measurement gains / (losses) on defined benefit obligations (net) (506) (706)
Income tax impact 127 245
-
-
-
-
-
-
-
Net (Loss) / gain on equity instrument designated at FVOCI for the year (624) (619)
3,300
3,300
3,300
3,300
-
Utilisation of securities premium

-
Capital
Reserve
Income tax impact - -
ii) Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Cashflow Hedge Reserve (9,232) 1,306
Income tax impact 3,261 (437)
Other comprehensive income/(loss) net of tax for the period (B) (6,974) (211)
-
-
-
-
-
-
-
4
4
-
-
Total comprehensive income net of tax (A + B) 98,398 1,19,448
Capital
Profit for the year attributable to :
money
- Equity holders of the Parent Company 1,05,372 1,19,806
- Non-Controlling Interest - (147)
Partner
Place : Chennai
Other Comprehensive Income (net of tax) for the period attributable to :
Date : June 3, 2020

-
-
-
22,000
-
-
-
-
24,000
1,06,046
1,28,046
82,046
1,06,046
-
- Equity holders of the Parent Company (6,974) (211)
Statutory
- Non-Controlling Interest - -
Total Comprehensive Income for the period attributable to :
- Equity holders of the Parent Company 98,398 1,19,595
- Non-Controlling Interest - (147)
Earnings per equity share of ₹ 2 each 33
-
10
-
-
-
-
-
10
-
-
-
-
-
allotment
- Basic ( ₹) 13.39 15.31
Particulars Share
- Diluted (₹) 13.37 15.30

For S.R. Batliboi & Associates LLP

b) Other Equity (Refer Note 26)
Total comprehensive income
Total comprehensive income


Re-measurement of defined
Re-measurement of defined

Transfer to reserves from
Transfer to reserves from

Addition during the year
Addition during the year

Dividend including DDT
Dividend including DDT

Opening Balance as at
Opening balance as at

a) Equity Share Capital
Closing balance as at
Closing balance as at

Profit for the year
Profit for the year
retained earnings
benefit plans and
benefit plans and

fair value change
fair value change

March 31, 2020
March 31, 2019

during the year
April 01, 2018

April 01, 2019




197 198
Ind-AS Consolidated Cash Flow Statement Ind-AS Consolidated Cash Flow Statement (Contd.)
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Cash Flow from Operating Activities Cash Flow from Financing Activities
Profit Before Tax 1,58,822 1,83,153 Proceeds from issue of Share Capital (Including Securities Premium) 1,19,584 174
Adjustments to reconcile profit before tax to net cash flows: Payment of Lease liabilities (4,877) -
Depreciation and amortisation expense 11,125 5,699 Proceeds from issue of debt securities 19,40,525 17,08,570
Impairment of financial instruments 89,735 31,134 Redemption of Debt securities (26,09,365) (17,36,533)
Finance Costs 4,59,170 3,58,814 Borrowing - Other than debt securities 44,91,409 29,85,062
Loss on Sale of Property plant and equipment ( Net ) 13 17 Repayment of borrowing - Other than debt securities (33,93,350) (18,00,501)
Fair value gain on loss of control in Subsidiary - (2,029) Proceeds from issue of subordinated liabilities 45,000 82,100
Change in fair value of financial instruments - Loss 140 - Repayment of subordinated liabilities (29,500) (18,650)
Net gain on fair value change in financial instruments (1,569) (6,334) 4,44,719 12,20,048
Interest Income on bank deposits (24,371) (8,044) Investment in Bank Fixed Deposits (Net of withdrawals) (2,94,218) 11,076
Dividend on Investments (37) (23) Dividends Paid (Including Distribution Tax) (20,027) (12,239)
Share based payment expense 1,161 811 Net Cash Flow From Financing Activities (C) 2,45,181 12,19,059
5,35,367 3,80,045 Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) 32,299 2,86,239
Operating Profit Before Working Capital Changes 6,94,189 5,63,198 Cash and Cash Equivalents at the Beginning of the year (Refer Note below) 3,16,158 29,969
Adjustments for :- Less: Cash and bank balances on loss of control in subsidiary during the year (50)
(Increase)/Decrease in operating Assets Cash and Cash Equivalents at the End of the year (Refer Note Below) 3,48,457 3,16,158
- Loans (8,04,020) (11,86,025) Note:
- Trade Receivables 1,481 2,915 Cash and Cash Equivalents at the End of the year as per Balance Sheet 3,49,514 3,16,435
- Other Financial Assets (28,937) (3,629) Less: On Other bank balances 1,057 277
- Other Non Financial Assets (210) (8,31,686) (553) (11,87,292) Cash and cash equivalents for cashflow purpose 3,48,457 3,16,158
Proceeds from de-recognition of financial assets recognised at amortised cost 4,35,789 1,18,220
Increase/(Decrease) in operating liabilities & Provisions The accompanying notes are integral part of the financial statements.
- Payables (4,567) 5,882
- Other Financial liabilities 5,384 1,257 As per our report of even date
- Provisions 1,685 1,093
- Other Non-Financial liabilities (873) 1,629 351 8,583 ICAI Firm Regn No.101049W/E300004
Cash Flow used in Operations 2,99,921 (4,97,291)
Finance Costs paid (4,71,458) (3,68,772)
Interest Received on Bank Deposits and Other Investments 21,660 7,496 Membership No: 083673
Dividend received 37 23
(4,49,761) (3,61,253)
(1,49,840) (8,58,544)
Income tax paid (Net of refunds) (57,637) (73,190)
Net Cash Used in Operating Activities (A) (2,07,477) (9,31,734)
Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Intangible Assets (7,156) (7,686)
Proceeds from Sale of Property, Plant and Equipment 108 292
Movement in investments (net) 1,643 6,308
Net Cash Used in Investing Activities (B) (5,405) (1,086)
199 200
Notes forming part of the Consolidated Ind AS Financial Statements Notes forming part of the Consolidated Ind AS Financial Statements (Contd.)
1. Corporate Information •
The contractual arrangement with the other vote consolidated financial statements. Ind AS 12 Income 2.3. Impact of Covid-19 on Impairment Allowance
holders of the investee Taxes applies to temporary differences that arise from

Cholamandalam Investment and Finance Company In terms of the COVID-19 Regulatory Package of the RBI, vide
• Rights arising from other contractual arrangements the elimination of profits and losses resulting from
Limited (“the Company”) (CIN L65993TN1978PLC007576) guidelines dated March 27, 2020 and April 17, 2020, and in
intragroup transactions.
is a public limited Company domiciled in India and the • The Group’s voting rights and potential voting rights accordance with the Scheme approved by the Company’s
equity shares of the Company is listed on Bombay Stock Profit or loss and each component of OCI are attributed to Board of Directors (“Board”), the Company has granted
• The size of the Group’s holding of voting rights relative the equity holders of the parent of the Group and to the
Exchange and National Stock Exchange. The Company to all eligible borrowers, moratorium of three months on
to the size and dispersion of the holdings of the other non-controlling interests, even if this results in the non-
and its subsidiaries viz. Cholamandalam Securities Limited the payment of all loan instalments falling due between
voting rights holders controlling interests having a deficit balance.
and Cholamandalam Home Finance Limited (together March 1, 2020 and May 31, 2020. Further, pursuant to RBI
The Group re-assesses whether or not it controls an When necessary, adjustments are made to the financial notification dated May 23, 2020 the moratorium is being
hereinafter referred to as “Group”). The Group is one of
investee if facts and circumstances indicate that there are statements of subsidiaries to bring their accounting extended for a further period of three months in accordance
the premier diversified financial services companies in
changes to one or more of the three elements of control. policies in line with the Group’s accounting policies. All with the Company’s policy approved by its Board. In this
India, engaged in providing vehicle finance, home loans
Consolidation of a subsidiary begins when the Group intra-group assets, liabilities, equity, income, expenses and connection, having regard to the guidance provided by
and Loan against property, business of broking and
obtains control over the subsidiary and ceases when the cash flows relating to transactions between members of the RBI and the Institute of Chartered Accountants of India,
distribution of financial products.
Group loses control of the subsidiary. Assets, liabilities, the Group are eliminated in full on consolidation. extension of such moratorium benefit to borrowers as
The consolidated Ind AS financial statements are presented income and expenses of a subsidiary acquired or disposed per the COVID-19 Regulatory Package of the RBI by itself
in INR which is also functional currency of the Group. of during the period are included in the consolidated If the Group loses control over a subsidiary, it:
is not considered to result in significant increase in credit
2.1 Basis of Consolidation financial statements from the date the Group gains control • Derecognises the assets (including goodwill) and risk as per Ind AS 109. Further, estimates and associated
until the date the Group ceases to control the subsidiary. liabilities of the subsidiary assumptions applied in preparing the financial statements,
The consolidated Ind AS financial statements of the
Consolidated financial statements are prepared using • Derecognises the carrying amount of any non especially in respect of expected credit loss on loans,
Company have been prepared in accordance with
uniform accounting policies for like transactions and other controlling interests are based on historical experience and other emerging/
Indian Accounting Standards (Ind AS) notified under the
events in similar circumstances. If a member of the Group forward looking factors including those arising on account
Companies (Indian Accounting Standards) Rules, 2015 (as • Derecognises the cumulative translation differences
uses accounting policies other than those adopted in the of the COVID-19 pandemic.
amended from time to time). recorded in equity
consolidated financial statements for like transactions and The Company, inter alia, has used relevant indicators
The consolidated Ind AS financial statements have been events in similar circumstances, appropriate adjustments • Recognises the fair value of the consideration received
of moratorium along with an estimation of potential
prepared in accordance with Ind AS. The consolidated are made to that Group member’s financial statements in • Recognises the fair value of any investment retained stress on probability of defaults and loss given defaults
Ind AS financial statements have been prepared on a preparing the consolidated financial statements to ensure due to COVID-19 situation in developing the estimates
• Recognises any surplus or deficit in profit or loss
historical cost basis, except for fair value through other conformity with the Group’s accounting policies. and assumptions to assess the expected credit loss on
comprehensive income (FVOCI) instruments, fair value Reclassifies the parent’s share of components previously
The financial statements of all entities used for the purpose loans, including on account of potential macro economic
through profit and loss (FVTPL) instruments, derivative recognised in OCI to profit or loss or retained earnings,
of consolidation are drawn up to same reporting date as conditions and has provided for an expected credit loss
as appropriate, as would be required if the Group had
financial instruments and Certain financial assets and that of the parent company, i.e., year ended on March 31. of Rs. 59,306 lakhs for the year ended March 31, 2020.
directly disposed of the related assets or liabilities
financial liabilities measured at fair value (refer accounting However, considering the inherent uncertainty regarding
Consolidation procedure: A change in the ownership interest of a subsidiary, without
policy regarding financial instruments). the severity and duration of the pandemic and the resultant
(a) Combine like items of assets, liabilities, equity, income, loss of control, is accounted for as an equity transaction. economic impact the company’s actual impairment loss
The consolidated Ind AS financial statements are presented
expenses and cash flows of the parent with those of its 2.2 . Impact of Covid-19 could be different from these estimates.
in Indian Rupees (INR) and all values are rounded to the
subsidiaries. For this purpose, income and expenses of
nearest lakhs, except when otherwise indicated. The COVID-19 pandemic has resulted in a significant decrease 3A Particulars of consolidation
the subsidiary are based on the amounts of the assets
The consolidated Ind AS financial statements comprise and liabilities recognised in the consolidated financial in economic activity across the country. The Government The financial statements of the following subsidiaries/
the financial statements of the Company, its subsidiaries statements at the acquisition date. of India and the respective State Governments announced associates (all incorporated in India) have been considered
(being the entity that it controls) and its Associate as at a strict lockdown to contain the spread of the virus which for consolidation:
(b) Offset (eliminate) the carrying amount of the parent’s was further extended twice across the nation with some
March 31, 2020. Control is evidenced when the Group Name of the Company Percentage of Voting Power as on
investment in each subsidiary and the parent’s portion relaxations in specific areas. This has had a consequential
is exposed, or has rights, to variable returns from its March 31, March 31,
of equity of each subsidiary. Business combinations impact on the regular operations of the Company, including 2020 2019
involvement with the investee and has the ability to affect policy explains how to account for any related goodwill. Cholamandalam Securities 100.00% 100.00%
lending and collection activities. In respect of the Company's
those returns through its power over the investee. Limited (CSEC)
(c)
Eliminate in full intra-group assets and liabilities, loan book, Management has made impairment provisions as Cholamandalam Home Finance 100.00% 100.00%
Generally, there is a presumption that a majority of voting equity, income, expenses and cash flows relating to more fully explained below. However, the full extent of impact Limited (CHFL) (formerly known
rights result in control. To support this presumption and transactions between entities of the Group (profits of the COVID-19 pandemic on the Company's operations, as Cholamandalam Distribution
when the Group has less than a majority of the voting or losses resulting from intra-group transactions that and financial metrics (including impact on impairment Services Limited
White Data Systems 30.87% 30.87% from
or similar rights of an investee, the Group considers all are recognised in assets, such as inventory and fixed provisions on loans) will further depend on government and India Private Limited Oct 2018
relevant facts and circumstances in assessing whether it assets, are eliminated in full). Intra-group losses may regulatory guidelines and future developments which are (63.00% up to
has power over an investee, including: indicate an impairment that requires recognition in the uncertain and incapable of estimation at this time. Sep 2018)
201 202
Notes forming part of the Consolidated Ind AS Financial Statements (Contd.) Notes forming part of the Consolidated Ind AS Financial Statements (Contd.)
3B Investment in an Associate and then recognises the impairment loss with respect to 5.1.3 Measurement categories of financial assets and The business model assessment is based on reasonably
the Group’s investment in an associate. liabilities expected scenarios without taking 'worst case' or 'stress
An associate is an entity over which the Group has
The Group classifies all of its financial assets based on the case’ scenarios into account. If cash flows after initial
significant influence. Significant influence is the power to Upon loss of significant influence over the associate, the
recognition are realised in a way that is different from the
participate in the financial and operating policy decisions Group measures and recognises any retained investment business model for managing the assets and the asset’s
Group's original expectations, the Group does not change
of the investee. at its fair value. Any difference between the carrying contractual terms, measured at either:
the classification of the remaining financial assets held in
The Group’s investments in its associate are accounted amount of the associate upon loss of significant influence • Amortised cost that business model, but incorporates such information
for using the equity method. Under the equity method, and the fair value of the retained investment and proceeds
• FVTPL when assessing newly originated or newly purchased
the investment in an associate is initially recognised at from disposal is recognised in profit or loss.
financial assets going forward.
cost. The carrying amount of the investment is adjusted • FVOCI
4. Presentation of financial statements 5.1.7 The SPPI test
to recognise changes in the Group’s share of net assets of 5.1.4 Financial assets and liabilities
the associate since the acquisition date. Goodwill relating The Group presents its balance sheet in order of liquidity. As a second step of its classification process the Group
An analysis regarding recovery or settlement within 5.1.5 Bank balances, Loans, Trade receivables and financial
to the associate is included in the carrying amount of the assesses the contractual terms of financial instruments to
12 months after the reporting date (current) and more investments at amortised cost
investment and is not tested for impairment individually. identify whether they meet the SPPI test.
than 12 months after the reporting date (non–current) is The Group measures Bank balances, Loans, and other
The statement of profit and loss reflects the Group’s share ‘Principal’ for the purpose of this test is defined as the fair
presented in notes to the financial statements. financial investments at amortised cost if both of the
of the results of operations of the associate. Any change in value of the financial asset at initial recognition and may
following conditions are met:
OCI of those investees is presented as part of the Group’s Financial assets and financial liabilities are generally change over the life of the financial asset (for example, if
OCI. In addition, when there has been a change recognised reported gross in the balance sheet. They are only offset and • The financial asset is held within a business model with there are repayments of principal or amortisation of the
directly in the equity of the associate, the Group recognises reported net when, in addition to having an unconditional the objective to hold financial assets in order to collect premium/discount).
its share of any changes, when applicable, in the statement legally enforceable right to offset the recognised amounts contractual cash flows and
The most significant elements of interest within a lending
of changes in equity. Unrealised gains and losses resulting without being contingent on a future event, the parties • The contractual terms of the financial asset give rise on arrangement are typically the consideration for the time value
from transactions between the Group and the associate also intend to settle on a net basis in all of the following specified dates to cash flows that are solely payments of money and credit risk. To make the SPPI assessment, the
are eliminated to the extent of the interest in the associate. circumstances: of principal and interest (SPPI) on the principal amount Group applies judgement and considers relevant factors such
If an entity’s share of losses of an associate equal or exceeds • The normal course of business outstanding. as the currency in which the financial asset is denominated,
its interest in the associate (which includes any long- The details of these conditions are outlined below. and the period for which the interest rate is set.
• The event of default
term interest that, in substance, form part of the Group’s
5.1.6 Business model assessment 5.1.8 Equity instruments
net investment in the associate), the entity discontinues • The event of insolvency or bankruptcy of the Group
recognising its share of further losses. Additional losses are and/or its counterparties The Group determines its business model at the level that The Group subsequently measures all equity investments
recognised only to the extent that the Group has incurred best reflects how it manages Group’s of financial assets to at fair value through profit or loss, unless the Group’s
5. Significant accounting policies management has elected to classify irrevocably some of
legal or constructive obligations or made payments on achieve its business objective.
behalf of the associate. If the associate subsequently 5.1 Financial instruments - initial recognition its equity investments as equity instruments at FVOCI,
The Group's business model is not assessed on an
reports profits, the entity resumes recognising its share of when such instruments meet the definition of Equity
5.1.1 Date of recognition instrument-by-instrument basis, but at a higher level of
those profits only after its share of the profits equals the under Ind AS 32 Financial Instruments: Presentation and
F inancial assets and liabilities, with the exception of loans, aggregated portfolios and is based on observable factors
share of losses not recognised. are not held for trading. Such classification is determined
debt securities, and borrowings are initially recognised such as:
on an instrument-by-instrument basis.
The aggregate of the Group’s share of profit or loss of an
on the trade date, i.e., the date that the Group becomes • How the performance of the business model and
associate is shown on the face of the statement of profit Gains and losses on these equity instruments are never
a party to the contractual provisions of the instrument. the financial assets held within that business model
and loss. recycled to profit or loss. Dividends are recognised in profit
Loans are recognised when fund transfers are initiated are evaluated and reported to the entity's key
or loss as dividend income when the right of the payment
The financial statements of the associate are prepared for to the customers’ account or cheques for disbursement management personnel
has been established, except when the Group benefits
the same reporting period as the Group. When necessary, have been prepared by the Group (as per the terms of the • The risks that affect the performance of the business from such proceeds as a recovery of part of the cost of
adjustments are made to bring the accounting policies in agreement with the borrowers). The Group recognises debt model (and the financial assets held within that the instrument, in which case, such gains are recorded in
line with those of the Group. securities and borrowings when funds reach the Group. business model) and, in particular, the way those risks OCI (Other Comprehensive Income). Equity instruments at
After application of the equity method, the Group are managed FVOCI are not subject to an impairment assessment.
5.1.2 Initial measurement of financial instruments
determines whether it is necessary to recognise an
All financial instruments are recognised initially at fair • How managers of the business are compensated (for 5.1.9 Debt securities and other borrowed funds
impairment loss on its investment in its associate. At each
value, including transaction costs that are attributable example, whether the compensation is based on the
reporting date, the Group determines whether there is After initial measurement, debt issued and other borrowed
to the acquisition of financial instrument, except in the fair value of the assets managed or on the contractual
objective evidence that the investment in the associate is funds are subsequently measured at amortised cost.
case of financial instruments which are FVTPL (Fair value cash flows collected) Amortised cost is calculated by taking into account any
impaired. If there is such evidence, the Group calculates
the amount of impairment as the difference between the through profit and loss),where the transaction costs are The expected frequency, value and timing of sales are also discount or premium on issue funds, and costs that are an
recoverable amount of the associate and its carrying value, charged to the statement of profit and loss. important aspects of the Group’s assessment integral part of the EIR.
203 204
5.1.10 Undrawn loan commitments advances with the right to full recovery of the amount same lender on substantially different terms, or the terms a) Contractual payments of either principal or interest are
Undrawn loan commitments are commitments under lent plus accrued interest at market rates of an existing liability are substantially modified, such an past due for more than 90 days;
which, over the duration of the commitment, the Group is • The Group cannot sell or pledge the original asset exchange or modification is treated as a derecognition of b) The loan is considered to be in default by the
required to provide a loan with pre-specified terms to the other than as security to the eventual recipients the original liability and the recognition of a new liability. management.
customer. Undrawn loan commitments are in the scope of The difference between the carrying value of the original
• The Group has to remit any cash flows it collects on The calculation of ECLs
the ECL requirements. financial liability and the consideration paid is recognised
behalf of the eventual recipients without material The Group calculates ECLs to measure the expected cash
in profit or loss.
The nominal contractual value of undrawn loan delay. In addition, the Group is not entitled to reinvest shortfalls, discounted at an approximation to the EIR. A
commitments, where the loan agreed to be provided is on such cash flows, except for investments in cash or 5.3 Impairment of financial assets
cash shortfall is the difference between the cash flows that
market terms, are not recorded in the balance sheet. The cash equivalents including interest earned, during the 5.3.1 Overview of the ECL principles are due to an entity in accordance with the contract and
nominal values of these commitments together with the period between the collection date and the date of the cash flows that the entity expects to receive.
The Group records allowance for expected credit losses
corresponding ECLs are disclosed in notes. required remittance to the eventual recipients.
for all loans, other debt financial assets not held at FVTPL, The key elements of the ECL are summarised below:
5.1.11 Reclassification of financial assets and liabilities A transfer only qualifies for derecognition if either: together with loan commitments, in this section all
PD:
The Group does not reclassify its financial assets subsequent • The Group has transferred substantially all the risks referred to as ‘financial instruments’. Equity instruments are
not subject to impairment under Ind AS 109. The Probability of Default is an estimate of the likelihood
to their initial recognition, apart from the exceptional and rewards of the asset
of default over a given time horizon. A default may only
circumstances in which the Group acquires, disposes of, Or The ECL allowance is based on the credit losses expected
happen at a certain time over the assessed period, if the
or terminates a business line. Financial liabilities are never to arise over the life of the asset (the lifetime expected
• The Group has neither transferred nor retained facility has not been previously derecognised and is still in
reclassified. The Group did not reclassify any of its financial credit loss or LTECL), unless there has been no significant
substantially all the risks and rewards of the asset, the portfolio.
assets or liabilities during the reporting period. increase in credit risk since origination, in which case, the
but has transferred control of the asset EAD:
5.2 Derecognition of financial assets and liabilities allowance is based on the 12 months’ expected credit loss
The Group considers control to be transferred if and only if, (12mECL) as outlined in these notes. The Exposure at Default is an estimate of the exposure at a
5.2.1 Derecognition of financial assets other than due to the transferee has the practical ability to sell the asset in its
The 12mECL is the portion of LTECLs that represent future default date (in case of Stage 1 and Stage 2), taking
substantial modification entirety to an unrelated third party and is able to exercise
the ECLs that result from default events on a financial into account expected changes in the exposure after the
5.2.1.1 Financial assets that ability unilaterally and without imposing additional reporting date, including repayments of principal and
instrument that are possible within the 12 months after
restrictions on the transfer. interest, whether scheduled by contract or otherwise,
A financial asset (or, where applicable, a part of a financial the reporting date.
asset or part of a group of similar financial assets) is When the Group has neither transferred nor retained expected drawdowns on committed facilities, and accrued
Both LTECLs and 12mECLs are calculated on either an interest from missed payments. In case of Stage 3 loans
derecognised when the rights to receive cash flows from the substantially all the risks and rewards and has retained
individual basis or a collective basis, depending on the EAD represents exposure when the default occurred.
financial asset have expired. The Group also derecognises control of the asset, the asset continues to be recognised
nature of the underlying portfolio of financial instruments.
the financial asset if it has both transferred the financial only to the extent of the Group’s continuing involvement, LGD:
asset and the transfer qualifies for derecognition. in which case, the Group also recognises an associated The Group has established a policy to perform an
The Loss Given Default is an estimate of the loss arising in
liability. The transferred asset and the associated liability assessment, at the end of each reporting period, of
The Group has transferred the financial asset if, and only if, the case where a default occurs at a given time. It is based
are measured on a basis that reflects the rights and whether a financial instrument’s credit risk has increased
either: on the difference between the contractual cash flows
obligations that the Group has retained. significantly since initial recognition, by considering the
due and those that the lender would expect to receive,
• The Group has transferred its contractual rights to change in the risk of default occurring over the remaining
Continuing involvement that takes the form of a guarantee including from the realisation of any collateral. It is usually
receive cash flows from the financial asset life of the financial instrument.
over the transferred asset is measured at the lower of the expressed as a percentage of the EAD.
Or original carrying amount of the asset and the maximum Based on the above process, the Group categorises its
Impairment losses and releases are accounted for and
• It retains the rights to the cash flows but has assumed amount of consideration the Group could be required to pay. loans into Stage 1, Stage 2 and Stage 3, as described below:
disclosed separately from modification losses or gains that
an obligation to pay the received cash flows in full In case where transfer of a part of financial assets Stage 1: When loans are first recognised, the Group are accounted for as an adjustment of the financial asset’s
without material delay to a third party under a ‘pass– qualifies for de-recognition, any difference between the recognises an allowance based on 12mECLs. Stage 1 loans gross carrying value
through’ arrangement. proceeds received on such sale and the carrying value of also include facilities where the credit risk has improved
The mechanics of the ECL method are summarised below:
Pass-through arrangements are transactions whereby the the transferred asset is recognised as gain or loss on de- and the loan has been reclassified from Stage 2.
recognition of such financial asset previously carried under Stage 1: The 12mECL is calculated as the portion of LTECLs
Group retains the contractual rights to receive the cash Stage 2: When a loan has shown a significant increase
amortisation cost category. The resulting interest only strip that represent the ECLs that result from default events
flows of a financial asset (the 'original asset'), but assumes a in credit risk since origination, the Group records an
initially is recognised at FVTPL. on a financial instrument that are possible within the 12
contractual obligation to pay those cash flows to one or more allowance for the LTECLs. Stage 2 loans also include
months after the reporting date. The Group calculates the
entities when all of the following three conditions are met: 5.2.1.2 Financial liabilities facilities, where the credit risk has improved and the loan
12mECL allowance based on the expectation of a default
• The Group has no obligation to pay amounts to the has been reclassified from Stage 3.
A financial liability is derecognised when the obligation occurring in the 12 months following the reporting date.
eventual recipients unless it has collected equivalent under the liability is discharged, cancelled or expires. Where Stage 3: Loans that has been credit-impaired are based on These expected 12-month default probabilities are applied
amounts from the original asset, excluding short-term an existing financial liability is replaced by another from the the following, for which it records an allowance for the LTECLs. to a forecast EAD and multiplied by the expected LGD and
205 206
discounted by an approximation to the original EIR. 5.5 Write-offs 5.7.1 Cash flow hedges is calculated by applying the EIR to the amortised cost of
A cash flow hedge is a hedge of the exposure to variability the credit-impaired financial assets (i.e. the gross carrying
Stage 2: When a loan has shown a significant increase Financial assets are written off either partially or in their
in cash flows that is attributable to a particular risk amount less the allowance for expected credit losses).
in credit risk since origination, the Group records an entirety only when the Group has no reasonable expectation
allowance for the LTECLs PDs and LGDs are estimated over of recovery. If the amount to be written off is greater than the associated with a recognised asset or liability (such as all 5.9 Taxes
the lifetime of the instrument. The expected cash shortfalls accumulated loss allowance, the difference recorded as an or some future interest payments on variable rate debt) 5.9.1 Current Tax
expense in the period of write off. Any subsequent recoveries or a highly probable forecast transaction and could affect
are discounted by an approximation to the original EIR. Current tax assets and liabilities for the current and
are credited to impairment on financial instrument in the profit or loss.
Stage 3: For loans considered credit-impaired, the Group prior years are measured at the amount expected to be
consolidated statement of profit and loss. For designated and qualifying cash flow hedges, the
recognises the lifetime expected credit losses for these recovered from, or paid to, the taxation authorities. The
5.6 Restructured, rescheduled and modified loans effective portion of the cumulative gain or loss on the tax rates and tax laws used to compute the amount are
loans. The method is similar to that for Stage 2 assets, with hedging instrument is initially recognised directly in OCI
The Group sometimes makes concessions or modifications those that are enacted, or substantively enacted, by the
the PD set at 100%. within equity (cash flow hedge reserve). reporting date in the countries where the Group operates
to the original terms of loans such as changing the
Loan commitment: The ineffective portion of the gain or loss on the hedging and generates taxable income.
instalment value or changing the tenor of the loan, as a
When estimating LTECLs for undrawn loan commitments, instrument is recognised immediately in net gain/loss on Current income tax relating to items recognised outside
response to the borrower’s request. The Group considers
fair value changes in the profit and loss statement. profit or loss is recognised outside profit or loss (either
the Group estimates the expected portion of the loan the modification of the loan only before the loans gets
commitment that will be drawn down over its expected credit impaired. When the hedged cash flow affects the statement of profit in other comprehensive income or in equity). Current
life. The ECL is then based on the present value of the and loss, the effective portion of the gain or loss on the tax items are recognised in correlation to the underlying
When the loan has been renegotiated or modified but not
expected shortfalls in cash flows if the loan is drawn hedging instrument is recorded in the corresponding income transaction either in OCI or directly in equity. Management
derecognised, the Group also reassesses whether there
or expense line of the statement of profit and loss. When the periodically evaluates positions taken in the tax returns
down. The expected cash shortfalls are discounted at has been a significant increase in credit risk. The Group also
forecast transaction subsequently results in the recognition with respect to situations in which applicable tax
an approximation to the expected EIR on the loan. For considers whether the assets should be classified as Stage of a non-financial asset or a non-financial liability, the gains regulations are subject to interpretation and establishes
an undrawn loan commitment, ECLs are calculated and 3. Once an asset has been classified as restructured, it will and losses previously recognised in OCI are reversed and provisions where appropriate.
presented under provision. remain restructured for a period of year from the date on included in the initial cost of the asset or liability. 5.9.2 Deferred Tax
5.3.2 Forward looking information which it has been restructured.
When a hedging instrument expires, is sold, terminated, Deferred tax is provided on temporary differences at
In its ECL models, the Group relies on a broad range of 5.7 Hedge accounting exercised, or when a hedge no longer meets the criteria the reporting date between the tax bases of assets and
forward looking information as economic inputs, such as: The Group makes use of derivative instruments to manage for hedge accounting, any cumulative gain or loss that liabilities and their carrying amounts for financial reporting
exposures to interest rate and foreign currency. In order has been recognised in OCI at that time re-mains in OCI purposes.
• GDP growth and is recognised when the hedged forecast transaction
to manage particular risks, the Group applies hedge
is ultimately recognised in the statement of profit and Deferred tax liabilities are recognised for all taxable
• Unemployment rates accounting for transactions that meet specified criteria.
loss. When a forecast transaction is no longer expected to temporary differences, except:
The inputs and models used for calculating ECLs may At the inception of a hedge relationship, the Group formally occur, the cumulative gain or loss that was reported in OCI • In respect of taxable temporary differences associated
not always capture all characteristics of the market designates and documents the hedge relationship to is immediately transferred to the statement of profit and with investments in subsidiaries, where the timing
at the date of the financial statements. To reflect this, which the Group wishes to apply hedge accounting loss. of the reversal of the temporary differences can be
qualitative adjustments or overlays are made as temporary and the risk management objective and strategy for controlled and it is probable that the temporary
5.8 Recognition of interest income
adjustments. undertaking the hedge. The documentation includes differences will not reverse in the foreseeable future
the Group’s risk management objective and strategy for 5.8.1 The effective interest rate method
5.4 Collateral repossessed Deferred tax assets are recognised for all deductible
undertaking hedge, the hedging/ economic relationship, Under Ind AS 109 interest income is recorded using temporary differences, the carry forward of unused
In connection with recovery of outstanding dues from the hedged item or transaction, the nature of the risk being the effective interest rate (‘EIR’) method for all financial tax credits and any unused tax losses. Deferred tax
borrowers, the company from time to time and in the hedged, hedge ratio and how the entity will assess the instruments measured at amortised cost. The EIR is the rate assets are recognised to the extent that it is probable
normal course of business, resorts to regular repossession effectiveness of changes in the hedging instrument’s fair that discounts estimated future cash receipts through the that taxable profit will be available against which
of collateral provided against vehicle loans and in certain value in offsetting the exposure to changes in the hedged expected life of the financial instrument to the net carrying the deductible temporary differences, and the carry
cases, also exercises its right over property through legal item’s fair value or cash flows attributable to the hedged amount of the financial asset. forward of unused tax credits and unused tax losses
procedures which include seizure of property (wherever risk. Such hedges are expected to be highly effective in Interest Income can be utilised, except:
applicable). Such assets repossessed are not used for the achieving offsetting changes in fair value or cash flows
The EIR (and therefore, the amortised cost of the asset) is • When the deferred tax asset relating to the deductible
internal operations. As per the Group’s accounting policy, and are assessed on an ongoing basis to determine that
calculated by taking into account of fees and costs that are temporary difference arises from the initial recognition
repossessed assets are not recorded in the balance sheet, they actually have been highly effective throughout the
an integral part of the EIR. The Group recognises interest of an asset or liability in a transaction that is not
and instead their estimated realisable value is considered financial reporting periods for which they were designated.
income using a rate of return that represents the best a business combination and, at the time of the
in determining the ECL allowance for the related Stage 3 Hedges that meet the strict criteria for hedge accounting estimate of a constant rate of return over the life of the transaction, affects neither the accounting profit nor
financial assets. are accounted for, as described below: loan. For credit-impaired financial assets interest income taxable profit or loss
207 208
• In respect of deductible temporary differences recognition, investment properties are stated at cost less * Estimated useful life of these assets based on usage and recoverable amount, the asset is considered impaired and
associated with investments in subsidiaries, associates accumulated depreciation and accumulated impairment replacement policy of such assets. is written down to its recoverable amount.
and interests in joint ventures, deferred tax assets are loss, if any. The residual values, useful lives and methods of In assessing value in use, the estimated future cash flows
recognised only to the extent that it is probable that the Depreciation on building classified as investment property depreciation of property, plant and equipment are are discounted to their present value using a pre-tax
temporary differences will reverse in the foreseeable has been provided on the straight-line method over a reviewed at each financial year end and adjusted discount rate that reflects current market assessments of
future and taxable profit will be available against which period of 60 years based on the Group’s estimate of their prospectively, if appropriate. the time value of money and the risks specific to the asset.
the temporary differences can be utilised useful lives taking into consideration technical factors, In determining fair value less costs of disposal, recent
Property plant and equipment is derecognised on disposal
The carrying amount of deferred tax assets is reviewed which is the same as the period prescribed in Sch II to the or when no future economic benefits are expected from market transactions are taken into account. If no such
at each reporting date and reduced to the extent that it Companies Act 2013. its use. Any gain or loss arising on derecognition of the transactions can be identified, an appropriate valuation
is no longer probable that sufficient taxable profit will be Though the Group measures investment property using asset (calculated as the difference between the net model is used. These calculations are corroborated by
available to allow all or part of the deferred tax asset to be cost based measurement, the fair value of investment disposal proceeds and the carrying amount of the asset) valuation multiples, quoted share prices for publicly traded
utilised. Unrecognised deferred tax assets are re-assessed property is disclosed in the notes. Fair values are determined is recognised in other income / expense in the statement companies or other available fair value indicators.
at each reporting date and are recognised to the extent based on an annual evaluation performed by an external of profit and loss in the year the asset is derecognised. The Group bases its impairment calculation on detailed
that it has become probable that future taxable profits will independent valuer applying valuation models. The date of disposal of an item of property, plant and budgets and forecast calculations, which are prepared
allow the deferred tax asset to be recovered. equipment is the date the recipient obtains control of that
Investment properties are derecognised either when they separately for each of the Group’s CGUs to which the
Deferred tax assets and liabilities are measured at the item in accordance with the requirements for determining individual assets are allocated. These budgets and forecast
have been disposed of or when they are permanently
tax rates that are expected to apply in the year when the when a performance obligation is satisfied in Ind AS 115. calculations generally cover a period of five years. For
withdrawn from use and no future economic benefit is
asset is realised or the liability is settled, based on tax rates expected from their disposal. The difference between the Right-of-use assets are depreciated from the commencement longer periods, a long-term growth rate is calculated and
(and tax laws) that have been enacted or substantively net disposal proceeds and the carrying amount of the date on a straight-line basis over the shorter of the lease applied to project future cash flows after the fifth year. To
enacted at the reporting date. Deferred tax relating to items asset is recognised in the statement of profit and loss in term and useful life of the underlying asset. estimate cash flow projections beyond periods covered by
recognised outside profit or loss is recognised outside profit the period of derecognition. the most recent budgets/forecasts, the Group extrapolates
5.12 Intangible assets
or loss (either in other comprehensive income or in equity). cash flow projections in the budget using a steady or
Deferred tax items are recognised in correlation to the 5.11 Property, plant and equipment The Group’s other intangible assets mainly include the value declining growth rate for subsequent years, unless an
underlying transaction either in OCI or directly in equity. Property plant and equipment is stated at cost excluding of computer software. An intangible asset is recognised increasing rate can be justified. In any case, this growth
the costs of day–to–day servicing, less accumulated only when its cost can be measured reliably and it is rate does not exceed the long-term average growth rate
Deferred tax assets and deferred tax liabilities are offset if a
depreciation and accumulated impairment in value. probable that the expected future economic benefits that for the products, industries, or country or countries in
legally enforceable right exists to set off current tax assets
Changes in the expected useful life are accounted for are attributable to it will flow to the Group. Intangible assets
against current tax liabilities and the deferred taxes relate which the entity operates, or for the market in which the
by changing the amortisation period or methodology, acquired separately are measured on initial recognition at
to the same taxable entity and the same taxation authority. asset is used.
as appropriate, and treated as changes in accounting cost. Subsequently, they are carried at cost less accumulated
5.9.3 Minimum Alternative Tax (MAT) amortisation and impairment losses if any, and are Impairment losses of continuing operations, are recognised
estimates.
amortised over their estimated useful life on the straight line in the statement of profit and loss.
Minimum alternate tax (MAT) paid in a year is charged
Depreciation is calculated using the straight–line method basis over a 3 year period or the license period whichever
to the statement of profit and loss as current tax for the For assets excluding goodwill, an assessment is made at
to write down the cost of property and equipment to their is lower. The carrying amount of the assets is reviewed at
year. The deferred tax asset is recognised for MAT credit each reporting date to determine whether there is an
residual values over their estimated useful lives which is each Balance sheet date to ascertain impairment based on
available only to the extent that it is probable that the indication that previously recognised impairment losses no
similar to those provided under Schedule II. Land is not internal or external factors. Impairment is recognised, if the
concerned company will pay normal income tax during longer exist or have decreased. If such indication exists, the
depreciated. carrying value exceeds the higher of the net selling price of
the specified period, i.e., the period for which MAT credit Group estimates the asset’s or CGU’s recoverable amount.
Useful life of assets which is same as those prescribed as the assets and its value in use.
is allowed to be carried forward. In the year in which the A previously recognised impairment loss is reversed only
per Schedule II of the Companies Act, 2013:
Group recognizes MAT credit as an asset, it is created by 5.13 Impairment of non–financial assets if there has been a change in the assumptions used to
Asset Description Estimated Useful Life
way of credit to the statement of profit and loss and shown determine the asset’s recoverable amount since the last
Buildings 60 years The Group assesses, at each reporting date, whether
as part of deferred tax asset. The Group reviews the “MAT Computer Equipment 3 years impairment loss was recognised. The reversal is limited so
there is an indication that an asset may be impaired. If
credit entitlement” asset at each reporting date and writes Other Equipment 5 years that the carrying amount of the asset does not exceed its
any indication exists, or when annual impairment testing
Leasehold improvements Lease Period or 5 years, recoverable amount, nor exceed the carrying amount that
down the asset to the extent that it is no longer probable for an asset is required, the Group estimates the asset’s
whichever is lower
that it will pay normal tax during the specified period. would have been determined, net of depreciation, had
recoverable amount. An asset’s recoverable amount is the
Useful life of assets based on Management’s estimation no impairment loss been recognised for the asset in prior
5.10 Investment Property higher of an asset’s or cash-generating unit’s (CGU) fair
and which are different from those specified in schedule II: years. Such reversal is recognised in the statement of profit
value less costs of disposal and its value in use. Recoverable
Investment property represents property held to earn Asset Description Estimated Useful Life or loss unless the asset is carried at a revalued amount, in
amount is determined for an individual asset, unless the
rentals or for capital appreciation or both. Furniture and Fixtures* 5 years which case, the reversal is treated as a revaluation increase.
asset does not generate cash inflows that are largely
Vehicles* 5 years
Investment properties are measured initially at cost, independent of those from other assets or Group of assets. Goodwill is tested for impairment annually and when
Membership card of stock 10 years
including transaction costs. Subsequent to initial exchanges When the carrying amount of an asset or CGU exceeds its circumstances indicate that the carrying value may be
209 210
impaired. Impairment is determined for goodwill by recognised immediately in the balance sheet with a If the options vests in instalments (i.e. the options vest The principal or the most advantageous market must be
assessing the recoverable amount of each CGU (or group of corresponding debit or credit to retained earnings through pro rata over the service period), then each instalment accessible by the Group.
CGUs) to which the goodwill relates. When the recoverable OCI in the period in which they occur. Remeasurements is treated as a separate share option grant because each The fair value of an asset or a liability is measured using
amount of the CGU is less than its carrying amount, an are not reclassified to profit or loss in subsequent periods. instalment has a different vesting period. the assumptions that market participants would use
impairment loss is recognised. Impairment losses relating when pricing the asset or liability, assuming that market
Past service costs are recognised in profit or loss on the 5.16 Provisions
to goodwill cannot be reversed in future periods. participants act in their economic best interest.
earlier of: Provisions are recognised when the Group has a present
Intangible assets with indefinite useful lives are tested for A fair value measurement of a non-financial asset takes
• The date of the plan amendment or curtailment, and obligation (legal or constructive) as a result of past events,
impairment annually at the CGU level, as appropriate, and into account a market participant’s ability to generate
and it is probable that an outflow of resources embodying
when circumstances indicate that the carrying value may • The date that the Group recognises related
economic benefits will be required to settle the obligation, economic benefits by using the asset in its highest and
be impaired. restructuring costs
and a reliable estimate can be made of the amount of the best use or by selling it to another market participant that
5.14 Retirement and other employee benefits Net interest is calculated by applying the discount rate obligation. When the effect of the time value of money would use the asset in its highest and best use.
Retirement benefit in the form of provident fund is a defined to the net defined benefit liability or asset. The Group is material, the Group determines the level of provision The Group uses valuation techniques that are appropriate
contribution scheme. The Group has no obligation, other recognises the following changes in the net defined by discounting the expected cash flows at a pre-tax rate in the circumstances and for which sufficient data are
than the contribution payable to the provident fund. The benefit obligation as an expense in the consolidated reflecting the current rates specific to the liability. The available to measure fair value, maximising the use of
Group recognises contribution payable to the provident statement of profit and loss: expense relating to any provision is presented in the relevant observable inputs and minimising the use of
fund scheme as an expense, when an employee renders statement of profit and loss net of any reimbursement. unobservable inputs.
• Service costs comprising current service costs, past-
the related service. If the contribution payable to the service costs, gains and losses on curtailments and 5.16.1 Provision for Claw Back of Commission Income In order to show how fair values have been derived,
scheme for service received before the balance sheet date
non-routine settlements; and The estimated liability for claw back of commission financial instruments are classified based on a hierarchy of
exceeds the contribution already paid, the deficit payable
income is recorded in the period in which the underlying valuation techniques, as summarised below:
to the scheme is recognised as a liability after deducting • Net interest expense or income.
the contribution already paid. If the contribution already revenue is recognised. These estimates are established Level 1 financial instruments − Those where the inputs
•
5.15 Share Based Payments
paid exceeds the contribution due for services received using historical information on the nature, frequency and used in the valuation are unadjusted quoted prices
Stock options are granted to the employees under the expected average cost of claw back and management from active markets for identical assets or liabilities
before the balance sheet date, then excess is recognised as
stock option scheme. The costs of stock options granted estimates regarding possible future incidence. The that the Group has access to at the measurement date.
an asset to the extent that the pre-payment will lead to, for
example, a reduction in future payment or a cash refund. to the employees (equity-settled awards) of the Group estimates used for accounting of claw back claims are The Group considers markets as active only if there are
are measured at the fair value of the equity instruments reviewed periodically and revisions are made as required. sufficient trading activities with regards to the volume
Employees’ State Insurance: The Group contributes to
granted. For each stock option, the measurement of fair and liquidity of the identical assets or liabilities and
Employees State Insurance Scheme and recognizes such 5.17 Dividends on ordinary shares
value is performed on the grant date. The grant date is when there are binding and exercisable price quotes
contribution as an expense in the Statement of Profit and Loss The Group recognises a liability to make cash distributions
the date on which the Group and the employees agree available on the balance sheet date.
in the period when services are rendered by the employees. to equity holders of the parent when the distribution
to the stock option scheme. The fair value so determined Level 2 financial instruments −Those where the
•
Superannuation: The Group contributes a sum equivalent is authorised and the distribution is no longer at the
is revised only if the stock option scheme is modified in a inputs that are used for valuation and are significant,
to 15% of eligible employees’ salary to a Superannuation discretion of the Group. As per the Companies Act, 2013
manner that is beneficial to the employees. are derived from directly or indirectly observable
Fund administered by trustees and managed by Life in India, a distribution is authorised when it is approved by
This cost is recognised, together with a corresponding market data available over the entire period of the
Insurance Corporation of India (“LIC”). The Group has no the shareholders. A corresponding amount is recognised
increase in share-based payment (SBP) reserves in equity, instrument’s life. Such inputs include quoted prices
liability for future Superannuation Fund benefits other directly in equity.
over the period in which the performance and/or service for similar assets or liabilities in active markets, quoted
than its contribution and recognizes such contributions 5.18 Determination of Fair value prices for identical instruments in inactive markets
as an expense in the Statement of Profit and Loss in the conditions are fulfilled in employee benefits expense.
The Group measures financial instruments, such as, and observable inputs other than quoted prices such
period when services are rendered by the employees. The cumulative expense recognised for equity-settled
derivatives at fair value at each balance sheet date. as interest rates and yield curves, implied volatilities,
transactions at each reporting date until the vesting date
The Group makes contribution to a Gratuity Fund and credit spreads. In addition, adjustments may be
reflects the extent to which the vesting period has expired Fair value is the price that would be received to sell an
administered by trustees and managed by LIC. The Group required for the condition or location of the asset
and the Group’s best estimate of the number of equity asset or paid to transfer a liability in an orderly transaction
accounts its liability for future gratuity benefits based or the extent to which it relates to items that are
on actuarial valuation, as at the Balance Sheet date, instruments that will ultimately vest. The statement of between market participants at the measurement date.
comparable to the valued instrument. However, if such
determined every year by an independent actuary using profit and loss expense or Credit for a period represents The fair value measurement is based on the presumption
adjustments are based on unobservable inputs which
the Projected Unit Credit method. the movement in cumulative expense recognised as at that the transaction to sell the asset or transfer the liability
are significant to the entire measurement, the Group
the beginning and end of that period and is recognised in takes place either:
Re-measurements, comprising of actuarial gains and will classify the instruments as Level 3.
employee benefits expense. • In the principal market for the asset or liability, or
losses, the effect of the asset ceiling, excluding amounts Level 3 financial instruments − Those that include
•
included in net interest on the net defined benefit liability The dilutive effect of outstanding options is reflected as • In the absence of a principal market, in the most one or more unobservable input that is significant to
and the return on plan assets (excluding amounts included additional share dilution in the computation of diluted advantageous market for the asset or liability the measurement as whole.
in net interest on the net defined benefit liability), are earnings per share.
211 212
For assets and liabilities that are recognised in the 5.19.2 Fee Income & Sale of Services the exchange rates at the dates of the initial transactions. by profit / (loss) before tax is adjusted for the effects of
financial statements on a recurring basis, the Group a) Fee income from loans are recognised upon satisfaction Non-monetary items measured at fair value in a foreign transactions of non-cash nature and any deferrals or
determines whether transfers have occurred between of following: currency are translated using the exchange rates at the accruals of past or future cash receipts or payments
levels in the hierarchy by re-assessing categorisation date when the fair value is determined. The gain or loss
i) Completion of service For the purpose of the Statement of Cash Flows, cash and
(based on the lowest level input that is significant to arising on translation of non-monetary items measured
cash equivalents as defined above, net of outstanding
the fair value measurement as a whole) at the end of ii) and realisation of the fee income. at fair value is treated in line with the recognition of the
bank overdrafts as they are considered an integral part of
each reporting period. b) Servicing and collections fees on assignment are gain or loss on the change in fair value of the item (i.e.,
cash management of the Group.
recognised upon completion of service. translation differences on items whose fair value gain or
The Group evaluates the levelling at each reporting period
loss is recognized in OCI or profit or loss are also recognized 5.27 Leases
on an instrument-by-instrument basis and reclassifies c) Advertising income is recognised over the contract in OCI or profit or loss, respectively). The Group’s lease asset consists of leases for buildings.
instruments when necessary based on the facts at the end period as and when related services are rendered.
of the reporting period. 5.23 Earnings Per Share The Group assesses whether a contract contains a lease,
d) Revenue from contract with customer is recognised at inception of a contract. A contract is, or contains, a
5.19 Recognition of Income point in time when performance obligation is satisfied Basic Earnings Per Share is calculated by dividing the
net profit or loss for the period attributable to equity lease If the contract conveys the right to control the use
Revenue (other than for those items to which Ind AS 109 (when the trade is executed). These include brokerage
shareholders by the weighted average number of equity of an identified asset for a period of time in exchange for
Financial Instruments are applicable) is measured at fair fees which is charged per transaction executed.
shares outstanding during the period. consideration. To assess whether a contract conveys the
value of the consideration received or receivable. Ind AS 115 5.20 Dividend Income right to control the use of an identified asset, the Group
Revenue from contracts with customers outlines a single The weighted average number of equity shares outstanding
Dividend income (including from FVOCI investments) is assesses whether: (i) the contract involves the use of an
comprehensive model of accounting for revenue arising during the period and for all periods presented is adjusted
recognised when the Group’s right to receive the payment identified asset (ii) the Group has substantially all of the
from contracts with customers and supersedes current for events, such as bonus shares, other than the conversion
is established and it is probable that the economic benefits economic benefits from the use of the asset through the
revenue recognition guidance found within Ind ASs. of potential equity shares, that have changed the number of
associated with the dividend will flow to the entity and the period of the lease and (iii) the Group has the right to
equity shares outstanding, without a corresponding change
The Group recognises revenue from contracts with amount of the dividend can be measured reliably. This is direct the use of the asset.
in resources. For the purpose of calculating diluted earnings
customers based on a five step model as set out in Ind 115: generally when the shareholders approve the dividend. At the date of commencement of the lease, the Group
per share, the net profit or loss for the period attributable
Step 1: Identify contract(s) with a customer: A contract 5.21 Input Tax credit (Goods and Service Tax) to equity shareholders and the weighted average number recognises a right-of-use asset (“ROU”) and a corresponding
is defined as an agreement between two or more parties Input Tax Credit is accounted for in the books in the period of shares outstanding during the period is adjusted for the lease liability for all lease arrangements in which it is a
that creates enforceable rights and obligations and sets when the underlying service / supply received is accounted effects of all dilutive potential equity shares. lessee, except for leases with a term of twelve months or
out the criteria for every contract that must be met. to the extent permitted as per the applicable regulatory less (short-term leases) and low value leases. For these
5.24 Segment Information
Step 2: Identify performance obligations in the contract: laws and when there is no uncertainty in availing / utilising short-term and low value leases, the Group recognises the
The accounting policies adopted for Segment reporting
A performance obligation is a promise in a contract with a the same. The ineligible input credit is charged off to the lease payments as an operating expense on a straight-line
are in line with the accounting policies of the Group with
customer to transfer a good or service to the customer. respective expense or capitalised as part of asset cost as basis over the term of the lease.
the following additional policies:
applicable. Certain lease arrangements include the options to extend
Step 3: Determine the transaction price: The transaction Revenue and expenses have been identified to segments
price is the amount of consideration to which the Group 5.22 Foreign Currency transactions or terminate the lease before the end of the lease term.
on the basis of their relationship to the operating activities
expects to be entitled in exchange for transferring ROU assets and lease liabilities includes these options
The Group’s financial statements are presented in Indian of the Segment. Revenue and expenses, which relate to the
promised goods or services to a customer, excluding Rupees (INR) which is also the Group’s functional currency. when it is reasonably certain that they will be exercised.
enterprise as a whole and are not allocable to Segments on
amounts collected on behalf of third parties. a reasonable basis have been included under “Un-allocable”. Right-of-Use assets are depreciated from the
Transactions in foreign currencies are initially recorded by
Step 4: Allocate the transaction price to the performance the Group at their respective functional currency spot rates Assets and liabilities have been identified to segments on commencement date on a straight-line basis over the
obligations in the contract: For a contract that has more at the date the transaction first qualifies for recognition. the basis of their relationship to the operating activities shorter of the lease term. Right to use assets are evaluated
than one performance obligation, the Group allocates the of the segment. Assets and liabilities, which relate to the for recoverability whenever events or changes in the
Income and expenses in foreign currencies are initially
transaction price to each performance obligation in an enterprise as a whole and are not allocable to segments on circumstances indicate that their carrying amounts may
recorded by the Group at the exchange rates prevailing on
amount that depicts the amount of consideration to which a reasonable basis have been included under “Un-allocable”. not be recoverable.
the date of the transaction.
the Group expects to be entitled in exchange for satisfying The lease liability is initially measured at amortised cost
Foreign currency denominated monetary assets and 5.25 Cash and Cash equivalents
each performance obligation. at the present value of the future lease payments. The
liabilities are translated at the functional currency spot Cash and cash equivalent in the balance sheet comprise
Step 5: Recognise revenue when (or as) the Group satisfies lease payments are discounted using the incremental
rates of exchange at the reporting date and exchange cash at banks and on hand and short-term deposits with
a performance obligation. borrowing rates in the country of domicile of the leases.
gains and losses arising on settlement and restatement are an original maturity of three months or less, which are
5.19.1 Interest on overdue balances and Other Charges recognized in the statement of profit and loss. Lease liabilities are remeasured with a corresponding
subject to an insignificant risk of changes in value.
adjustment to the related right to use asset if the Group
Overdue interest in respect of loans is recognised upon Non-monetary items that are measured in terms of 5.26 Cash Flow Statement changes its assessment if the whether it will exercise an
realisation. historical cost in a foreign currency are translated using
Cash flows are reported using the indirect method, where extension or a termination option.
213 214
ROU asset has been presented under Property, plant and This assessment includes judgements reflecting all financial assets should be measured on a LTECL basis and Given the subjectivity and uncertainty of determining the
equipment while lease liability is presented under Other relevant evidence including the past performance of the qualitative assessment probability and amount of losses, the Group takes into
Financial Liabilities in the Balance Sheet. Lease payments the assets transferred and credit risk that the Group has The segmentation of financial assets when their ECL is account a number of factors including legal advice, the
made by the Group are classified as financing cash flows. been exposed to. Based on this assessment, the Group assessed on a collective basis stage of the matter and historical evidence from similar
believes that the credit enhancement provided pursuant incidents. Significant judgement is required to conclude
The Group applies the short-term lease recognition Development of ECL models, including the various
to the transfer of financial assets under securitisation are on these estimates.
exemption to its short-term leases of Buildings (i.e., formulas and the choice of inputs
higher than the loss incurred on the similar portfolios of
those leases that have a lease term of 12 months or less vi) Business Model Assessment.
the Group hence it has been concluded that securitisation Determination of temporary adjustments as qualitative
from the commencement date and do not contain a The Group from time to time enters into direct bilateral
transactions entered by the Group does not qualify de- adjustment or overlays based on broad range of forward
purchase option). Lease payments on short-term leases assignment deals, which qualify for de-recognition under
recognition since substantial risk and rewards of the looking information as economic inputs
are recognised as expense on a straight-line basis over the Ind AS 109. Accordingly, the assessment of the business
ownership has not been transferred. The transactions
lease term. The Company has considered the impact of Covid-19
are treated as financing arrangements and the sale model for managing its financial assets its financial assets
pandemic and the moratorium given to borrowers
5.28 Trade receivable consideration received is treated as borrowings. becomes a critical judgement. Refer Note 5.1.6 for related
pursuant to the Covid-19 regulatory package announced
The Group follows ‘simplified approach’ for recognition details.
ii) Fair value of financial instruments by Reserve Bank of India, in determination of impairment
of impairment loss allowance on trade receivables. The allowance for the year. Also refer note 2.3. 6B. New Accounting standards issued and
The fair value of financial instruments is the price that
application of simplified approach does not require the effective from April 1, 2019
would be received to sell an asset or paid to transfer a It has been the Group’s policy to regularly review its
Group to track changes in credit risk. Rather, it recognises New and amended standards and interpretations Ind
liability in an orderly transaction in the principal (or most models in the context of actual loss experience and adjust
impairment loss allowance based on lifetime ECLs at AS 116
advantageous) market at the measurement date under when necessary.
each reporting date, right from its initial recognition. The
current market conditions (i.e., an exit price) regardless Ind AS 116 supersedes Ind AS 17 Leases, including
Group uses a provision matrix to determine impairment iv) Leases
of whether that price is directly observable or estimated Appendix A of Ind AS 17 - Operating Leases-Incentives,
loss allowance on portfolio of its trade receivables. The a.
Determining the lease term of contracts with
using another valuation technique. When the fair values Appendix B of Ind AS 17 - Evaluating the Substance of
provision matrix is based on its historically observed renewal and termination options - Group as lessee
of financial assets and financial liabilities recorded in the Transactions Involving the Legal Form of a Lease and
default rates over the expected life of the trade receivables
balance sheet cannot be derived from active markets, they The Group determines the lease term as the non- Appendix C of Ind AS 17 - Determining whether an
and is adjusted for forward-looking estimates. At every
are determined using a variety of valuation techniques cancellable term of the lease, together with any Arrangement contains a Lease. The standard sets out the
reporting date, the historical observed default rates are
that include the use of valuation models. The inputs to periods covered by an option to extend the lease principles for the recognition, measurement, presentation
updated for changes in the forward-looking estimates.
these models are taken from observable markets where if it is reasonably certain to be exercised, or any and disclosure of leases and requires lessees to recognise
6A. Significant accounting judgements, possible, but where this is not feasible, estimation is periods covered by an option to terminate the lease, most leases on the Balance Sheet.
estimates and assumptions required in establishing fair values. Judgements and if it is reasonably certain not to be exercised. The
Lessor accounting under Ind AS 116 remains unchanged

The preparation of the Group’s financial statements estimates include considerations of liquidity and model Group applies judgement in evaluating whether it
from Ind AS 17. Lessors will continue to classify leases as
requires management to make judgements, estimates and inputs related to items such as credit risk (both own and is reasonably certain whether or not to exercise the
either operating or finance leases using similar principles
assumptions that affect the reported amount of revenues, counterparty), funding value adjustments, correlation and option to renew or terminate the lease. That is, it
as in Ind AS 17. Therefore, Ind AS 116 did not have an
expenses, assets and liabilities, and the accompanying volatility. For further details about determination of fair considers all relevant factors that create an economic
impact for leases where the Group is the lessor.
disclosures, as well as the disclosure of contingent value please see Fair value note in Accounting policy incentive for it to exercise either the renewal or
liabilities. Uncertainty about these assumptions and termination. The Group adopted Ind AS 116 using the modified
iii) Impairment of financial asset
estimates could result in outcomes that require a material retrospective method of adoption in accordance with Para
The measurement of impairment losses across all categories b. Estimating the incremental borrowing rate
adjustment to the carrying amount of assets or liabilities C8 (c) (ii) to Ind AS 116 with the date of initial application
of financial assets requires judgement, in particular, the The Group cannot readily determine the interest rate being 1st April 2019. Under this method, the standard
affected in future period
estimation of the amount and timing of future cash flows implicit in the lease, therefore, it uses its incremental is applied retrospectively with the cumulative effect of
In the process of applying the Group’s accounting policies, and collateral values when determining impairment losses borrowing rate (IBR) to measure lease liabilities. The IBR initially applying the standard recognised at the date
management has made the following judgements/ and the assessment of a significant increase in credit risk. is the rate of interest that the Group would have to pay of initial application. The Company elected to use the
estimates, which have a significant risk of causing a These estimates are driven by a number of factors, changes to for its borrowings. transition practical expedient to not reassess whether a
material adjustment to the carrying amounts of assets and in which can result in different levels of allowances.
v) Provisions and other contingent liabilities contract is or contains a lease at 1st April 2019. Instead,
liabilities.
The Group’s ECL calculations are outputs of complex the Company applied the standard only to contracts that
When the Group can reliably measure the outflow of
i) De-recognition of Financial instruments models with a number of underlying assumptions were previously identified as leases applying Ind AS 17 and
economic benefits in relation to a specific case and
The Group enters into securitisation transactions where regarding the choice of variable inputs and their Appendix C to Ind AS 17 at the date of initial application
considers such outflows to be probable, the Group records
financial assets are transferred to a structured entity for a interdependencies. Elements of the ECL models that are
a provision against the case. Where the probability of The Group has lease contracts for various items of Building.
consideration. The financial assets transferred qualify for considered accounting estimates include:
outflow is considered to be remote, or probable, but a Before the adoption of Ind AS 116, the Company classified
derecognition only when substantial risk and rewards are The Group’s criteria for assessing if there has been a reliable estimate cannot be made, a contingent liability is each of its leases (as lessee) at the inception date as either
transferred. significant increase in credit risk and so allowances for disclosed. a finance lease or an operating lease. Upon adoption of
215 216
Ind AS 116, the Company applied a single recognition Based on the above, as at 1st April 2019: ` in lakhs
and measurement approach for all leases except for short- Particulars As at As at
• Right-of-use assets of Rs 11,591 lakhs. were recognised 31.03.2020 31.03.2019
term leases. Refer to Note 3.30 - Leases for the accounting
and presented separately in the Balance Sheet. Note : 7 CASH AND CASH EQUIVALENTS
policy beginning 1st April 2019. The standard provides
• Corresponding lease liabilities of Rs.12,421 lakhs were Cash on hand 330 4,997
specific transition requirements and practical expedients,
recognised. Balances with banks
which have been applied by the Company.
- In Current Accounts 61,856 35,075
Leases previously classified as Finance Leases Appendix C to Ind AS 12 Uncertainty over Income Tax - In Deposit Accounts - Original maturity 3 months or less 2,86,130 2,68,762
The Company did not change the initial carrying amounts Treatment Cheques, drafts on hand 141 7,324
of recognised assets and liabilities at the date of initial The appendix addresses the accounting for income taxes On other bank balances
application for leases previously classified as finance leases when tax treatments involve uncertainty that affects the - On client and exchange related accounts & other deposits 1,057 277
(i.e., the right-of-use assets and lease liabilities equal the application of Ind AS 12 Income Taxes. It does not apply Total 3,49,514 3,16,435
lease assets and liabilities recognised under Ind AS 17). The to taxes or levies outside the scope of Ind AS 12, nor does Cash and cash equivalents 3,49,514 3,16,435
requirements of Ind AS 116 were applied to these leases it specifically include requirements relating to interest and Less: Other bank balances 1,057 277
from 1st April 2019. Cash and cash equivalents for cashflow purpose 3,48,457 3,16,158
penalties associated with uncertain tax treatments. The
Leases previously accounted for as operating leases Appendix specifically addresses the following: ` in lakhs
The Company recognised right-of-use assets and lease Particulars As at As at
• Whether an entity considers uncertain tax treatments
31.03.2020 31.03.2019
liabilities for those leases previously classified as operating separately
Note : 8 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
leases, except for short-term leases. The Right-of-use
• The assumptions an entity makes about the examination - In Deposit Accounts - Original maturity more than 3 months including interest accrued 3,11,805 1,521
assets were recognised based on the amount equal to
of tax treatments by taxation authorities - Non current bank balances 837 819
the lease liabilities, adjusted for any related prepaid and
- In earmarked accounts
accrued lease payments previously recognised. Lease • How an entity determines taxable profit (tax loss), tax
- In Unpaid Dividend Accounts 73 68
liabilities were recognised based on the present value bases, unused tax losses, unused tax credits and tax rates
- Deposits with Banks as collateral towards securitisation loan 37,837 51,995
of the remaining lease payments, discounted using
• How an entity considers changes in facts and circumstances - Other deposit Account on amalgamation of Cholamandalam Factoring Limited 8 8
the incremental borrowing rate at the date of initial
The Company determines whether to consider each Total 3,50,560 54,411
application.
uncertain tax treatment separately or together with
The Company also applied the available practical ` in lakhs
one or more other uncertain tax treatments and uses
expedients wherein it: As at 31.03.2020 As at 31.03.2019
the approach that better predicts the resolution of the
• sed a single discount rate to a portfolio of leases with
U Particulars Notional Fair Fair Notional Fair Fair
uncertainty. The Company applies significant judgement in amounts Value Value amounts Value Value
reasonably similar characteristics
identifying uncertainties over income tax treatments. Since -Assets -Liabilites -Assets -Liabilites
• Relied on its assessment of whether leases are onerous the Company operates in a multinational environment, Note 9 : DERIVATIVE FINANCIAL INSTRUMENTS
immediately before the date of initial application it assessed whether the Appendix had an impact on its Part I
• Applied the short-term leases exemptions to leases financial statements. (i) Other derivatives - Cross Currency Interest Rate Swap 2,34,373 11,420 - 2,26,150 8,869 841
with lease term that ends within 12 months of the date Total Derivative financial Instruments 2,34,373 11,420 - 2,26,150 8,869 841
Upon adoption of the Appendix C to Ind AS 12, the
of initial application Part II
Company considered whether it has any uncertain tax
Included in above (Part I) are derivatives held for hedging and risk
• Excluded the initial direct costs from the measurement positions. The Company determined, based on its tax
management purposes as follows:
of the right-of-use asset at the date of initial application. compliance, that it is probable that its tax treatments will
(i) Cash flow hedging:
• Used hindsight in determining the lease term where be accepted by the taxation authorities. The Appendix did
Others - Cross currency interest rate swap 2,34,373 11,420 - 2,26,150 8,869 841
the contract contained options to extend or terminate not have an impact on the Financial Statements of the Total Derivative financial Instruments 2,34,373 11,420 - 2,26,150 8,869 841
the lease Company.
The Group has a Board approved policy for entering into derivative transactions. Derivative transaction represents Currency and Interest
Rate Swaps. The Group undertakes such transactions for hedging borrowings. The Asset Liability Management Committee and Business
Committee periodically monitors and reviews the risks involved.
217 218
` in lakhs Note : 11.1 LOANS (Contd.)
Particulars As at As at An analysis of changes in the gross carrying amount and corresponding ECL allowances in relations to loans ` in lakhs
31.03.2020 31.03.2019
Gross Carrying amount Impairment allowance
Note : 10 RECEIVABLES
(i) Trade Receivables Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Considered Good* 1,503 4,128 Transfer to Stage 3 - - - - - - - -
Subtotal (i) 1,503 4,128 Impact on account of exposures transferred - - - - - - - -
(ii) Other Receivables during the period between stages
Considered Good* 5,052 3,908
Impact of changes on items within - - - - - - 146 146
Subtotal (ii) 5,052 3,908
the same stage
Total (i)+(ii) 6,555 8,036
Closing as on March 31, 2020 5,141 43 3,414 8,598 31 4 3,173 3,208
*Includes dues from related parties. Term loans
No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Opening as on April 1, 2019 49,97,273 2,07,617 1,40,398 53,45,288 18,690 19,724 51,484 89,898
` in lakhs New assets originated / Increase 25,49,193 25,834 9,514 25,84,541 28,640 3,982 4,031 36,653
Particulars As at As at in existing assets (Net)
31.03.2020 31.03.2019 Exposure de-recognised / matured / repaid (20,60,421) (1,13,388) (48,497) (22,22,306) (13,214) (5,073) (7,497) (25,784)
Note : 11 LOANS (At amortised cost) Transfer to Stage 1 59,640 (55,972) (3,668) - 6,161 (5,184) (977) -
(A) Transfer to Stage 2 (1,84,591) 1,87,214 (2,623) - (811) 1,491 (680) -
(i) Bills Discounted 8,598 8,860 Transfer to Stage 3 (76,058) (42,931) 1,18,989 - (348) (3,981) 4,329 -
(ii) Term loans 56,83,272 53,45,288
Impact on account of exposures transferred 139 682 2,562 3,383 232 14,604 32,867 47,703
Total (A) - Gross 56,91,870 53,54,148
during the period between stages

Impact of changes on items within the - - 4,489 4,489 - - 8,679 8,679
Less: Impairment Allowance for (i) & (ii) (1,52,297) (93,071)
Total (A) - Net 55,39,573 52,61,077 same stage
(B) Write off (16,842) (7,034) (8,247) (32,123) (259) (2,221) (5,580) (8,060)
(i) Secured 56,63,436 53,03,106 Closing as on March 31, 2020 52,68,333 2,02,022 2,12,917 56,83,272 39,091 23,342 86,656 1,49,089
(ii) Unsecured 28,434 51,042 Bills Discounted
Total (B) - Gross 56,91,870 53,54,148 Opening as on April 1, 2018 10,316 850 2,343 13,509 26 62 1,270 1,358
Less: Impairment Allowance (1,52,297) (93,071) New assets originated / Increase in 5,352 39 892 6,283 13 3 596 612
Total (B) - Net 55,39,573 52,61,077 existing assets (Net)
Exposure de-recognised / matured / repaid (10,005) (780) (147) (10,932) (25) (57) (41) (123)
All loans are in India and have been granted to individuals or entities other than public sector.
Transfer to Stage 3 (296) (69) 365 - (1) (5) 6 -
Secured indicates loans secured, wholly or partly, by way of hypothecation of automobile assets and / or pledge of securities and / or Impact on account of exposures transferred - - - - - - 329 329
equitable mortgage of property and / or advances generated out of loans.
during the year between stages (net)
Term loans includes unsecured short term loan to an associate. The loans have been classified under Stage 1 Category at the various Impact of changes on items within the - - - - - - 997 997
reporting periods and related impairment provision as per the Group's accounting policy has been created. The details of the same are same stage (net)
disclosed below: Closing as on March 31, 2019 5,367 40 3,453 8,860 13 3 3,157 3,173
` in lakhs
Term loans
31.03.2020 31.03.2019 Opening as on April 1, 2018 39,53,537 1,95,508 1,45,283 42,94,328 17,009 18,436 49,432 84,877
Loan - Oustanding Value New assets originated / Increase in 27,39,605 28,154 5,473 27,73,232 5,732 5,997 1,890 13,619
White Data System India Private Limited - Associate 340 340 existing assets (Net)
Impairment Provision Exposure de-recognised / matured / repaid (15,26,859) (1,13,192) (55,852) (16,95,903) (1,841) (3,955) (6,074) (11,870)
White Data System India Private Limited - Associate - - Transfer to Stage 1 56,448 (49,871) (6,577) - 6,206 (4,642) (1,564) -
Transfer to Stage 2 (1,71,530) 1,78,274 (6,744) - 2,298 (850) (1,448) -
Note : 11.1 LOANS
Transfer to Stage 3 (44,907) (25,631) 70,538 - (250) (2,481) 2,731 -
An analysis of changes in the gross carrying amount and corresponding ECL allowances in relations to loans
` in lakhs Impact on account of exposures transferred 3 200 1,825 2,028 (6,068) 10,596 14,921 19,449
Gross Carrying amount Impairment allowance during the year between stages
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Impact of changes on items within - - 4,144 4,144 (3,667) (1,457) 2,885 (2,239)
the same stage
Bills discounted
Write off (9,024) (5,825) (17,692) (32,541) (729) (1,920) (11,289) (13,938)
Closing as on March 31, 2019 49,97,273 2,07,617 1,40,398 53,45,288 18,690 19,724 51,484 89,898
New assets originated / Increase in 5,123 42 250 5,415 31 4 100 135
existing assets (Net) ECL across stages have been computed on collective basis.
Exposure de-recognised / matured / repaid (5,349) (39) (289) (5,677) (13) (3) (230) (246) The Company uses Days past due of the customer to determine the credit quality of loans.
219 220
Particulars As at As at Particulars As at As at
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Note : 12 INVESTMENTS Note : 14 DEFERRED TAX
Investment in Equity Instruments* Deferred Tax Assets
a) Unquoted - FVOCI** Impairment allowance for financial instruments 37,741 32,430
Amaravathi Sri Venkatesa Paper Mills Limited Provision for Contingencies and undrawn commitments 1,004 1,379
293,272 Equity shares of ₹ 10 each fully paid up# - - Provision for Claw back 1 5
Saraswat Co-operative Bank Limited Provision for Compensated Absences and Gratuity 1,313 1,280
Impact of Effective interest rate adjustment on Financial Assets 7,815 9,761
1,000 Equity shares of ₹ 10 each fully paid up# - -
Contract liability as per IND AS 115 413 995
The Shamrao Vithal Co-operative Bank Limited
Depreciation 968 671
1,000 Equity shares of ₹ 25 each fully paid up# - -
Carry forward of tax losses 254 299
Chennai Willingdon Corporate Foundation MAT credit entitlement 293 327
5 shares of ₹ 10 each: cost ₹ 50 only# - - Items recognised in OCI 2,762 -
Chola Insurance Services Private Ltd. Others 607 376
19,133 Equity shares of ₹10 each fully paid up 2 2 (A) 53,171 47,523
Faering Capital India Evolving Fund Deferred Tax Liability
29,037 units ( as on March 31, 2019 - 30,781 units ) of ₹10 each fully paid up 302 516 Impact of Effective interest rate adjustment on Financial Liabilities 424 856
b) Quoted - FVOCI Items recognised in OCI - 655
Bombay Stock Exchange Limited (B) 424 1,511
Net Deferred Tax Assets (A) - (B) 52,747 46,012
65,000 Equity shares of ₹ 1 each fully paid up 194 398
Madras Enterprises Limited
` in lakhs
2,85,000 Equity shares of ₹ 1 each fully paid up# - - Particulars Year ended 31.03.2020 Year ended 31.03.2019
Coromandel Engineering Co. Ltd Income OCI Income OCI
25,00,100 Equity shares of ₹ 10 each fully paid up 295 715 Statement Statement
Total 793 1,631 Deferred Tax Assets
Impairment allowance for financial instruments (5,311) - 3,730 -
*Investments are made in India Provision for Contingencies and undrawn commitments 375 - (10) -
** The Group has designated certain unquoted investments as FVOCI on the basis that these are not held for trading. Provision for Claw back 4 - 5 -
# represents amount less than Rs 1 lakh. Provision for Compensated Absences and Gratuity (33) - 360 -
Impact of Effective interest rate adjustment on Financial Assets 1,946 - 3,554 -
Contract liability as per IND AS 115 582 - - -
` in lakhs Depreciation (297) - (100) -
Particulars As at As at Carry forward of tax losses and MAT entitlement credit 11 - 299 -
31.03.2020 31.03.2019 Others (231) - 99 -
Note : 13 OTHER FINANCIAL ASSET (A) (2,954) - 7,937 -
At amortised cost Deferred Tax Liability
Unsecured - considered good (unless otherwise stated) Impact of Effective interest rate adjustment on Financial Liabilities 432 - (328) -
Security deposits 4,949 3,298 Gain on de-recognition of loans - - (1,404) -
Interest only strip receivable 35,782 9,062 Re-measurement gains / (losses) on defined benefit plans (Net) - 127 - (245)
Other advances (Refer Note 39) 3,182 2,616 Cashflow Hedge Reserve - 3,261 - 437
Total 43,913 14,976 (B) 432 3,388 (1,732) 192
Net deferred tax charge / (reversal) (A) - (B) (3,386) (3,388) 9,669 (192)
Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on 25th November 2019, the Company had exercised the option permitted
u/s 115BAA of the Income Tax Act, 1961 ,to compute income tax at revised rate (i.e.25.17%) from current financial year and accordingly,
had re-measured deferred tax as at April 1, 2019. The re-measurement has resulted in additional tax charge of ₹ 12,845 lakhs in the
statement of profit and loss and additional tax benefit of ₹ 172 lakhs in other Comprehensive income for the year.
221 222
` in lakhs Note : 15 INVESTMENT PROPERTIES (Contd.)
Particulars Total Particulars Valuation Significant Range Sensitivity of Fair value Sensitivity
Note : 15 INVESTMENT PROPERTIES technique unobservable (Weighted avg) the input to (` in lakhs) (` in lakhs)
inputs fair value
Gross carrying amount as at April 1, 2018 5
Additions* 9 v) Sensitivity analysis
Disposals - Investment property Based on Price per `7,000 - `13,000 5% 299 15
Gross carrying amount as at March 31, 2019 14 As at March 31 2020 Market value Sq. feet per Sq. feet
Additions - Investment property Based on Price per `7,000 - `13,000 5% 287 14
Disposals - As at March 31 2019 Market value Sq. feet per Sq. feet
Gross carrying amount as at March 31, 2020 14
Accumulated depreciation and impairment ` in lakhs
Balance as at April 1, 2018 - Particulars Freehold Computer Office Furniture Leasehold Vehicles Buildings Total
Depreciation for the year - Land Equipment Equipment and Fixtures Improvements (Refer Note below)
Depreciation on disposals - Own Right of
Balance as at March 31, 2019 - Assets Use Asset
Depreciation for the period - Note : 16 PROPERTY, PLANT AND EQUIPMENT
Depreciation on disposals - Gross carrying amount as at 3,956 3,959 1,626 1,382 2,940 1,273 2,575 - 17,711
Balance as at March 31, 2020** - April 1, 2018
Net Carrying amount Additions - 1,991 563 484 801 592 - 4,431
As at March 31, 2019 14 Disposals - 4 19 3 19 258 9 312
As at March 31, 2020 14 Gross carrying amount as at 3,956 5,946 2,170 1,863 3,722 1,607 2,566 - 21,830
Useful Life of the asset (In Years) 60 March 31, 2019
Method of depreciation Straight line method Additions 2,463 735 685 1,359 580 137 15,289 21,248
Disposals 18 57 85 40 201 398 - 799
Gross carrying amount as at 3,956 8,391 2,848 2,463 5,041 1,986 2,305 15,289 42,279
Note: The Group's investment property consists of 4 properties and has let out one property as at March 31, 2020. March 31, 2020
*Additions represents transfer from Property, plant and equipments. Accumulated depreciation /
amortisation and impairment
** represents amount less than ₹ 100,000
Balance as at April 1, 2018 - 1,486 477 659 727 226 48 - 3,623
Depreciation for the year 1,790 463 477 757 327 48 3,862
Depreciation on disposals 2 9 2 6 133 - 152
i) Income earned and expense incurred in connection with Investment Property Balance as at March 31, 2019 - 3,274 931 1,134 1,478 420 96 - 7,333
` in lakhs
Particulars Year ended Year ended Depreciation for the year 2,076 567 657 1,031 373 425 4,259 9,388
31.03.2020 31.03.2019 Depreciation on disposals 20 42 67 30 121 398 - 678
Rental Income 4 4 Balance as at March 31, 2020 - 5,330 1,456 1,724 2,479 672 123 4,259 16,043
Direct Operating expense from property that generated rental income 1 1 Net Carrying amount
Direct Operating expense from property that did not generated rental income - - As at March 31, 2019 3,956 2,672 1,239 729 2,244 1,187 2,470 - 14,497
As at March 31, 2020 3,956 3,061 1,392 739 2,562 1,314 2,182 11,030 26,236
ii) Contractual obligations Useful Life of the asset (In Years) 3 5 5 5 5 60 upto 5
There are no contractual obligations to purchase, construct or develop investment property. Method of depreciation Straight-line method
iii) Leasing Arrangements

Note
Certain investment properties are leased out to tenants under cancellable operating lease.
` in lakhs 1. Details of Immovable properties of land and buildings, whose title deeds have been pledged in favour of Trustees for the benefit of
debenture holders as security, has been explained in Note 19.1
31.03.2020 31.03.2019 2. Disposal represents transfer to Investment property.
iv) Fair Value 3. The Group has elected to include ROU assets pertaining to lease of buildings as part of the Property, plant and equipment as permitted
Investment Property 299 287 under paragraph 47 of Ind AS 116.
223 224
` in lakhs 19.2 Details of Debentures - Contractual principal repayment value
Particulars Computer Software
(i) Secured Redeemable Non-Convertible Debentures - Redeemable at par - No put call option
Note : 17 INTANGIBLE ASSETS
Deemed cost as at April 1, 2018 3,463 No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest %
Additions 1,914 redemption
Disposals - 31.03.2020 31.03.2019
Gross carrying amount as at March 31, 2019 5,377 ₹ in lakhs ₹ in lakhs
Additions 1,587 250 10,00,000 2,500 2,500 Nov-26 8.55
Disposals 204
1,500 10,00,000 15,000 15,000 Apr-24 8.62
Gross carrying amount as at March 31, 2020 6,760
Accumulated Amortization and impairment 3,523 10,00,000 35,230 35,230 Sep-23 8.80
Balance as at April 1, 2018 1,361 1,350 10,00,000 13,500 - Feb-23 7.41
Amortization for the year 1,798 1,000 10,00,000 10,000 - Dec-22 7.98
Amortization on disposals -
1,500 10,00,000 15,000 15,000 Nov-22 8.00
Balance as at March 31, 2019 3,159
Amortization for the period 1,738 3,523 10,00,000 35,230 35,230 Sep-22 8.70
Amortization on disposals 204 1,050 10,00,000 10,500 10,500 Mar-22 8.35 to 9.06
Balance as at March 31, 2020 4,693 3,523 10,00,000 35,230 35,230 Sep-21 8.45
Net Carrying amount
1,250 10,00,000 12,500 - Aug-21 8
As at March 31, 2019 2,220
As at March 31, 2020 2,067 2,550 10,00,000 25,500 25,500 Jul-21 9.06
Useful Life of the asset (In Years) 3 4,010 10,00,000 40,100 20,000 Jun-21 8.49 to 8.52
Method of depreciation Straight line method 4,770 10,00,000 47,700 47,700 Apr-21 8.0874
1,500 10,00,000 15,000 - Mar-21 8.85
` in lakhs
Particulars As at As at 600 10,00,000 6,000 6,000 Feb-21 9.09
31.03.2020 31.03.2019 1,350 10,00,000 13,500 - Jan-21 8.11
Note : 18 OTHER NON FINANCIAL ASSETS
3,500 10,00,000 35,000 35,000 Dec-20 8.00 to 8.98
Unsecured - considered good
1,750 10,00,000 17,500 17,500 Oct-20 7.75
Prepaid expenses 1,489 1,195
Capital advances 114 224 2,200 10,00,000 22,000 22,000 Jun-20 8.10 to 9.10
Other assets 424 398 4,800 10,00,000 48,000 48,000 May-20 8.12 to 8.90
Total 2,027 1,817 800 10,00,000 8,000 8,000 Apr-20 8.11 to 9.02
500 10,00,000 - 5,000 Mar-20 9.02
` in lakhs
Particulars As at As at 9,850 10,00,000 - 98,500 Feb-20 7.97 to 8.85
31.03.2020 31.03.2019 5,500 10,00,000 - 55,000 Dec-19 7.97
Note : 19 DEBT SECURITIES (at amortised cost) 2,750 10,00,000 - 27,500 Nov-19 8.10 to 9.10
Redeemable Non-Convertible Debentures Medium - Term - Secured 5,74,418 10,54,445
5,750 10,00,000 - 57,500 Oct-19 8.05 to 8.20
Commercial Papers - Unsecured 1,58,265 3,63,986
5,850 10,00,000 - 58,500 Sep-19 8.06 to 8.46
Total 7,32,683 14,18,431
2,250 10,00,000 - 22,500 Aug-19 7.50 to 9.90
All debt securities in india 7,300 10,00,000 - 73,000 Jul-19 7.80 to 9.90
19.1 Security 2,750 10,00,000 - 27,500 Jun-19 9.13 to 9.90
(i) Redeemable Non-Convertible Debentures - Medium-term is secured by way of specific charge on assets under hypothecation 6,750 10,00,000 - 67,500 May-19 8.03 to 9.20
relating to Vehicle Finance, Home Equity, Bills discounted and other loans and pari passu charge on immovable property
1,100 10,00,000 - 11,000 Apr-19 8.00 to 9.20
situated at Chennai.
(ii) The Group has not defaulted in the repayment of dues to its lenders. 4,62,990 8,81,890
225 226
Note : 19 DEBT SECURITIES (at amortised cost) (Contd.) 20.1 Security
(ii) Secured Redeemable Non-Convertible Debentures - Redeemable at premium - No put call option (i) Secured term loans from banks and financial institution are secured by way of specific /pari passu charge on assets under
` in lakhs hypothecation relating to automobile financing and loans against immovable property.
o. of Debentures
N Face Value ₹ Balance as at Due date of Redemption Premium ₹ (ii) Loan repayable on demand is in the nature of Cash Credit from banks and is secured by way of floating charge on assets under
redemption price ₹ hypothecation and other assets.
31.03.2020 31.03.2019
₹ in lakhs ₹ in lakhs (iii) The Group has not defaulted in the repayment of dues to its lenders.
500 10,00,000 5,000 - Jan-23 12,54,470 2,54,470 (iv) Securitisation borrowing represents the net outstanding value (Net of Investment in Pass-through Certificates) of the proceeds
1100 10,00,000 11,000 11,000 May-21 12,94,211 2,94,211 received by the Company from securitisation trust in respect of loan assets transferred by the Company pursuant to Deed of
1000 10,00,000 10,000 10,000 Mar-21 12,76,583 2,76,583 Assignment. The Company has provided Credit enhancement to the trust by way of cash collateral and Bank guarantee and also
Refer note 8
1150 10,00,000 11,500 11,500 Dec-20 11,92,230 1,92,230
2050 10,00,000 20,500 20,500 May-20 12,63,916 2,63,916
20.2 Details of term loans - Contractual principal repayment value
` in lakhs
190 10,00,000 1,900 1,900 Apr-20 12,56,100 2,56,100 Rate of Interest Maturity Instalments Amount outstanding
500 10,00,000 5,000 5,000 Apr-20 13,54,976 3,54,976 31.03.2020 31.03.2019
800 10,00,000 8,000 8,000 Apr-20 12,74,682 2,74,682 Base Rate / MCLR < 1year 1 1,05,833 21,000
750 10,00,000 - 7,500 Sep-19 12,66,148 2,66,148 2 1,38,750 -
80 10,00,000 - 800 Jul-19 12,98,729 2,98,729 3 57,188 12,000
500 10,00,000 - 5,000 Jul-19 13,63,101 3,63,101 4 53,334 20,000
80 10,00,000 - 800 Apr-19 13,08,150 3,08,150 8 60,000 -
250 10,00,000 - 2,500 Apr-19 13,13,730 3,13,730 1 - 2 years 1 92,917 60,000
72,900 84,500 2 96,667 -
4 1,92,084 60,000
(iii) Secured Redeemable Non-Convertible Debentures - Redeemable at par - with Put option 8 60,000 -
No. of Debentures Face Value ₹ Balance as at Due date of Put option Rate of 2 - 3 years 1 1,30,000 40,000
redemption date interest % 2 2,48,751 -
31.03.2020 31.03.2019 3 - 15,000
4 79,582 -
15 10,00,000 - 150 Mar-21 Feb-20 8.85 8 60,000 -
10 10,00,000 100 100 Aug-23 Jul-21 9.06 3 - 4 years 1 8,333 -
100 250 2 1,63,334 -
4 60,000 -
` in lakhs
6 - 1,00,000
31.03.2020 31.03.2019 8 60,000 -
Note : 20 BORROWINGS (Other than Debt Securities) at amortised cost 16 - 25,000
A) Term Loans 4 - 5 years 1 21,665 -
(i) (a) From Banks - Secured 2 90,000 -
- Rupee Loans 34,41,247 21,97,592 4 40,000 -
- Foreign currency Loans 11,788 2,00,467 6 - 80,000
- External Commercial Borrowings 2,47,326 34,629 7 9,375 -
(b) From Banks - Unsecured > 5 Years 1 5,000 -
- Short term loans - 15,000 Base Rate/ MCLR + spread (0.05% to 0.92%) < 1year 1 3,37,500 52,000
ii) From Other Parties - Secured 4 80,000 -
(a) Financial Institutions - Rupee Loans 1,63,258 93,481 1 - 2 years 1 4,92,500 3,10,000
(b) Securitisation - Rupee Loans 4,63,131 5,49,261 3 18,750 -
B) Loan repayable on demand - Secured from Banks - Rupee Loans 558 1,21,945 4 72,500 50,000
Total 43,27,308 32,12,375 6 12,500 -
2 - 3 years 1 18,750 5,20,000
Borrowings within India 40,79,982 31,77,746 2 30,000 -
Borrowings Outside India 2,47,326 34,629 4 72,500 1,00,000
227 228
20.2 Details of term loans - Contractual principal repayment value (Contd.) Details of Securitised loan
Rate of Interest Maturity Instalments Amount outstanding Rate of Interest Maturity Amount outstanding*
31.03.2020 31.03.2019 31.03.2020 31.03.2019
6 12,500 - Less than 1 year 1,58,012 1,90,854
8 - 1,00,000 Fixed 1-2 year 1,24,382 1,26,195
(4.9% to 8%) 2-3 year 54,213 56,971
3 - 4 years 1 12,500 1,00,000
3-4 year 15,261 13,886
2 30,000 - 4-5 year 5,593 6,506
4 72,500 - more than 5 years 17,222 26,700
6 12,500 - Total 3,74,683 4,21,112
4- 5 years 10 - 1,00,000 Less than 1 year 6,753 11,287
Floating 1-2 year 7,928 11,921
20 - 3,00,000
Base Rate/ MCLR - spread 2-3 year 8,439 12,280
>5 Years 2 5,000 - (0.75% to 2.65%) 3-4 year 9,088 12,060
Rate based on T Bill + Spread < 1 year 1 74,400 5,000 4-5 year 9,411 12,319
2 32,500 - more than 5 years 46,706 66,786
1 - 2 years 1 29,400 20,000 Total 88,325 1,26,653
3 - 3,000 * Represents amounts to be paid to the securitisation trust as per the securitisation cash flows net of amounts to be received
4 25,000 - against Investment in PTC.
5 - 8,334 20.3 Loan repayable on demand represents cash credit and overdraft facilities
2 - 3 years 1 29,400 - ` in lakhs
2 12,500 - Particulars As at As at
4 - - 31.03.2020 31.03.2019
3 - 4 years 3 - 28,200 Note : 21 SUBORDINATED LIABILITIES (at amortised cost)
Fixed Rate < 1year 1 - 74,000 Perpetual Debt - Unsecured 1,49,597 1,44,179
2 12,200 Subordinated Debt - Unsecured
4 28,000 - a) Rupee Denominated Bonds 40,677 -
1 - 2 years 2 6,000 - b) Other Subordinated Debts 2,50,278 2,81,689
4 40,400 - Total 4,40,552 4,25,868
2 - 3 years 4 39,400 -
(i) All Subordinated liabilities have been contracted in India except for Rupee denominated bonds issued for ` 40,677 lakhs in FY19-20.
10 - 30,000
(ii) The Group has not defaulted in the repayment of dues to its lenders.
4 24,400
16 - 63,000 21.1 Details of Subordinated Liabilities - Contractual principal repayment value
4 - 5 years 2 12,100 - (i) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt - Redeemable at par - No put call option
3Months Repo < 1year 4 18,000 No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest %
1 - 2 years 1 30,000 redemption
8 36,000 31.03.2020 31.03.2019
2 - 3 years 8 36,000 30,000
Total 35,98,513 23,26,534 400 1,00,00,000 40,000 - Jan-30 9.25
3000 10,00,000 30,000 30,000 Aug-28 9.75
USD 2Y MIBOR + Spread < 1year 1 4,000 -
5300 10,00,000 53,000 53,000 Mar-28 9.05
1-2 years 1 - 4,000 1500 10,00,000 15,000 15,000 Aug-27 8.53
USD 3M LIBOR + Spread < 1year 2 11,668 - 2500 10,00,000 25,000 25,000 Jun-27 8.78 to 8.80
1-2 years 5 - 20,000 100 10,00,000 1,000 1,000 Nov-26 9.20
USD 6M LIBOR + Spread < 1year 1 - 1,47,500 150 10,00,000 1,500 1,500 Jun-24 11.00
50 10,00,000 500 500 May-24 11.00
1-2 years 1 37,830 -
250 10,00,000 2,500 2,500 Apr-24 11.00
2-3 years 1 1,36,188 34,650 250 10,00,000 2,500 2,500 Mar-24 11.00
4 - 5 years 1 69,607 - 200 10,00,000 2,000 2,000 Feb-24 11.00
Total 2,59,293 2,06,150 250 10,00,000 2,500 2,500 Jan-24 11.00
2000 10,00,000 20,000 20,000 Nov-23 9.08 to 9.20
500 10,00,000 5,000 5,000 Oct-23 9.08
229 230
` in lakhs
21.1 Details of Subordinated Liabilities - Contractual principal repayment value (Contd.) Particulars As at As at
31.03.2020 31.03.2019
No. of Debentures Face Value ₹ Balance as at Due date of Rate of interest %
redemption Note : 22 OTHER FINANCIAL LIABILITIES
31.03.2020 31.03.2019 Unpaid dividend 73 68
₹ in lakhs ₹ in lakhs Advance from customers 1,999 1,991
150 10,00,000 1,500 1,500 Sep-23 11.00 Security deposits received 216 221
600 10,00,000 6,000 6,000 Dec-22 11.05 to 11.25 Collections towards derecognised assets pending remittance 15,955 4,607
3,150 10,00,000 31,500 31,500 Nov-21 10.02 Other liabilities 8,817 14,789
1,000 10,00,000 10,000 10,000 Jun-21 11.30
Lease liability (Refer Note 50) 12,425 -
1,000 10,00,000 10,000 10,000 May-21 11.30
100 10,00,000 1,000 1,000 Mar-21 11.00 Total 39,485 21,676
100 10,00,000 1,000 1,000 Feb-21 11.00
150 10,00,000 1,500 1,500 Oct-20 11.00 ` in lakhs
500 10,00,000 5,000 5,000 Jul-20 10.70 Particulars As at As at
115 10,00,000 1,150 1,150 May-20 11.00 31.03.2020 31.03.2019
1,000 10,00,000 10,000 10,000 Apr-20 11.00 Note : 23 PROVISIONS
750 10,00,000 - 7,500 Dec-19 11.50
Provision for Employee Benefits
700 10,00,000 - 7,000 Jun-19 11.40
1,500 10,00,000 - 15,000 May-19 11.70 to 11.75 Compensated absences 5,182 3,578
2,79,150 2,68,650 5,182 3,578
Other Provisions
(ii) Unsecured Redeemable Non-Convertible Debentures - Subordinated debt -Redeemable at premium - No put call option
Provision for contingencies and service tax claims (Refer note 41) 3,838 3,837
o. of Debentures
N Face Value ₹ Balance as at Due date of Redemption Premium ₹ Provision for expected credit loss towards undrawn commitments (Refer note 41) 131 51
redemption price ₹
31.03.2020 31.03.2019 3,969 3,888
₹ in lakhs ₹ in lakhs Total 9,151 7,466
150 10,00,000 1,500 1,500 Nov-23 17,57,947 7,57,947
1,500 1,500
` in lakhs
(iii) Unsecured Redeemable Non-Convertible Debentures - Perpetual debt Particulars As at As at
31.03.2020 31.03.2019
No. of Debentures Face Value ₹ Balance as at Maturity Date Rate of interest %
- Perpetual (increase by 100 bps Note : 24 OTHER NON FINANCIAL LIABILITIES
31.03.2020 31.03.2019 # if call option is not Income received in advance 1,712 2,303
₹ in lakhs ₹ in lakhs exercised on the due date) Others 955 834
1000 5,00,000 5,000 - Dec-29 10.75 Statutory liabilities 1,075 2,308
1120 5,00,000 5,600 5,600 Mar-29 10.83 Total 3,742 5,445
5000 5,00,000 25,000 25,000 Feb-29 10.88
500 5,00,000 2,500 2,500 Aug-24 12.80
174 10,00,000 1,740 1,740 Jul-24 12.90 ` in lakhs
500 5,00,000 2,500 2,500 Jun-24 12.90 As at 31.03.2020 As at 31.03.2019
Particulars
500 5,00,000 2,500 2,500 Feb-24 12.90 Nos. Amount Nos. Amount
50 10,00,000 500 500 Jan-24 12.60 Note : 25 EQUITY SHARE CAPITAL*
1,031 10,00,000 10,310 10,310 Dec-23 12.50 to 12.60
AUTHORISED
245 10,00,000 2,450 2,450 Oct-23 12.60
1,000 5,00,000 5,000 5,000 Oct-23 12.90 Equity Shares of ₹ 2 each (March 2019 - ₹ 10 each) with voting rights 1,20,00,00,000 24,000 24,00,00,000 24,000
300 10,00,000 3,000 3,000 Feb-23 12.80 Preference Shares of ₹ 100 each 5,00,00,000 50,000 5,00,00,000 50,000
1,450 10,00,000 14,500 14,500 Dec-22 12.70 to 12.80 74,000 74,000
860 5,00,000 4,300 4,300 Sep-22 12.75 ISSUED
2,000 5,00,000 10,000 10,000 Aug-22 12.90
Equity Shares of ₹ 2 each (March 2019 - ₹ 10 each) with voting rights 82,02,61,529 16,405 15,64,95,867 15,650
200 5,00,000 1,000 1,000 Mar-22 12.50
700 5,00,000 3,500 3,500 Jan-22 12.50 16,405 15,650
3,500 5,00,000 17,500 17,500 Dec-21 12.50 to 12.95 SUBSCRIBED AND FULLY PAID UP
320 5,00,000 1,600 1,600 Aug-21 12.50 Equity Shares of ₹ 2 each (March 2019 - ₹ 10 each) with voting rights 81,95,77,759 16,391 15,63,59,113 15,636
413 5,00,000 2,065 2,065 Jul-21 12.50 Add : Forfeited Shares 6,54,500 7 1,30,900 6
2,021 5,00,000 10,105 10,105 Jun-21 12.50
16,398 15,642
3,000 5,00,000 15,000 15,000 Oct-20 12.05
1,45,670 1,40,670
# Company can redeem using Call option on the maturity date with prior approval of RBI.
231 232
a) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year/period: ` in lakhs
` in lakhs Particulars As at As at

Particulars As at 31.03.2020 As at 31.03.2019 31.03.2020 31.03.2019
Nos. Amount Nos. Amount
Note : 26 OTHER EQUITY (Contd.)
Equity Shares Capital Reserve (Refer Note b)
At the beginning of the period 15,63,59,113 15,636 15,63,31,371 15,633 Balance at the beginning of the year 4 4
Additional shares pursuant to share split during the period 62,54,36,452 - - - Add: Changes during the year - -
Issued during the year Closing balance at the end of the year 4 4
a) Qualified institutional Placement 2,81,25,000 563 - - Capital Redemption Reserve (Refer Note c)
b) Preferential Issue to the holding company 93,45,794 187 - - Balance at the beginning of the year 3,300 3,300
c) Employees Stock Option (ESOP) Scheme 3,11,400 5 27,742 3 Add: Changes during the year - -
Outstanding at the end of the period/ year 81,95,77,759 16,391 15,63,59,113 15,636 Closing balance at the end of the year 3,300 3,300
Forfeited shares Securities Premium Account (Refer Note d)
Equity Shares - Amount originally paid up 6,54,500 7 1,30,900 7 Balance at the beginning of the year 1,66,850 1,66,680
Add: Premium on issue of shares on preferential basis (Refer note 25a) 29,813 -
Terms/rights attached to Equity shares Add: Premium on issue of shares on Qualified Institutional placement (Refer note 25a) 89,437
The Company has only one class of equity shares having a par value of ₹ 2 (March 2019 - ₹10) per share. All these shares have the Add: Premium on ESOPs exercised 499 170
Less: Share issue expenses (921) -
same rights and preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the
Closing balance at the end of the year 2,85,678 1,66,850
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except for interim dividend.
General Reserve (Refer Note e)
Repayment of capital will be in proportion to the number of equity shares held. Balance at the beginning of the year 2,50,967 1,90,967
Add: Amount transferred from retained earnings 50,000 60,000
b) Equity Shares held by Holding Company Closing balance at the end of the year 3,00,967 2,50,967
Share Based Payments Reserve (Refer Note f)
31.03.2020 31.03.2019
Addition during the year 1,156 815
Cholamandalam Financial Holdings Limited (formerly known as 37,28,85,889 7,25,33,019 Closing balance at the end of the year 3,017 1,861
"TI Financial Holdings Limited") - Holding Company Retained Earnings (Refer Note g)
c) Details of shareholding more than 5% shares in the Company Profit for the year 1,05,372 1,19,806
` in lakhs
Less:

Particulars As at 31.03.2020 As at 31.03.2019 Dividend
Nos. % holding Nos. % holding
Equity - Final (8,798) (3,127)
in the class in the class
Equity - Interim (7,819) (7,036)
Equity Shares Distribution tax on Equity Dividend (3,416) (2,089)
Cholamandalam Financial Holdings Limited - Holding Company 37,28,85,889 45.50 7,25,33,019 46.39 Transfer to Statutory Reserve (22,000) (24,000)
Transfer to General Reserve (50,000) (60,000)
*During the current period, shares of face value of ₹ 10/- each have been split into 5 equity shares of face value of ₹ 2/- each Re-measurement Gain / (Loss) on Defined Benefit Obligation (Net) transferred to Retained Earnings (379) (466)
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders Closing balance at the end of the year 89,808 76,848
regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares. Cashflow hedge reserve (Refer Note h)
Balance at the beginning of the year (1,208) (2,077)
d) Issue of Shares on preferential basis and Qualified institutional placement Addition (5,971) 869
On January 31, 2020 the Company alloted 2,81,25,000 equity shares of ₹ 2 each at a premium of ₹ 318 per share aggregating to Closing balance at the end of the year (7,179) (1,208)
FVOCI Reserve (Refer Note i)
₹ 90,000 lakhs to eligible investors through Qualified institutional placement.
Balance at the beginning of the year 561 1,180
On March 9, 2020 the Company alloted 93,45,794 equity shares of ₹ 2 each at a premium of ₹ 319 per share aggregating to Addition (624) (619)
₹ 30,000 lakhs to the holding company under preferential allotment route. Deduction - -
Closing balance at the end of the year (63) 561
` in lakhs Share Application Money pending Allotment at the end of the year (Refer note j) 10 -
Particulars As at As at Total Other Equity 8,03,588 6,05,229
31.03.2020 31.03.2019
Note : 26 OTHER EQUITY a) Statutory reserve represents the reserve created as per Section 45IC of the RBI Act, 1934, pursuant to which a Non-Banking Financial
Statutory Reserve (Refer Note a) Company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every year as disclosed
Balance at the beginning of the year 1,06,046 82,046 in the Statement of Profit and Loss account, before any dividend is declared. During the current year ended March 31, 2020, the
Add: Amount transferred from retained earnings 22,000 24,000 Company has transferred an amount of Rs 22,000 lakhs to the reserve created as per these provisions.
Closing balance at the end of the year 1,28,046 1,06,046 b) Capital reserve represents the reserve created on account of amalgamation of Chola Factoring Limited in the year 2013-14.
233 234
c) Capital redemption reserve represents the amount equal to the nominal value of shares that were redeemed during the prior Note : 27 REVENUE FROM OPERATIONS (Contd.)
years. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions Details related to services transferred over a time.
of the Companies Act, 2013 a) Contract balances ` in lakhs
d) Securities premium reserve is used to record the premium on issue of shares. The premium received during the period represents Particulars As at 31.03 2020 As at 31.03.2019
the premium received towards allotment of equity shares issued under Qualified institutional placement, Preferential allotment to Contract Liabilities 1,641 2,241
holding company and ESOP scheme. The reserve can be utilized only for limited purposes such as issuance of bonus shares, buy back Contract liability relates to payments received in advance of performance under the contract. Contract liabilities are recognised as
of its own shares and securities in accordance with the Section 52 of the Companies Act, 2013.
revenue as (or when) we perform under the contract.
e) The general reserve is a free reserve, retained from Group’s profits and can be utilized upon fulfilling certain conditions in accordance b) Movement in Contract liability during the period as follows ` in lakhs
with specific requirement of Companies Act, 2013.
Particulars 2019-20 2018-19
f ) Under IND AS 102, fair value of the options granted is required to be accounted as expense over the life of the vesting year as
Contract liability at the beginning of the period 2,241 2,847
employee compensation costs, reflecting the year of receipt of service.
Revenue Recognised during the period 600 606
g) The amount that can be distributed by the Group as dividends to its equity shareholders is determined based on the financial position
of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported in retained earnings Contract liability at the end of the period 1,641 2,241
are not distributable in entirety. c) Total Revenue from contracts with Customer ` in lakhs
h) Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging Particulars 2019-20 2018-19
instruments entered into for cash flow hedges, which shall be reclassified to profit or loss only when the hedged transaction affects Total Revenue from contracts with Customer* 32,440 36,136
the profit or loss, or included as a basis adjustment to the non-financial hedged item, consistent with the Group accounting policies. *Represents fee income (note 27 B) and sale of services (note 27 D)
i) FVOCI Reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value d) Due to Group’s nature of business and the type of contracts entered with the customers, the Company does not have any difference
through Other Comprehensive Income. between the amount of revenue recognized in the statement of profit and loss and the contracted price.
j) Share application money pending allotment as at March 31, 2020 represents amount received towards 5000 equity shares of the e) Impairment recognised for Contract asset is Nil (Nil - March 31, 2019)
Company pursuant to ESOP scheme and have been subsequently allotted. f) Performance Obligation:
` in lakhs - Servicing and Collection fee on Assignment: to collect the receivable from the customer and transfer the same to the assignee
Particulars Year ended Year ended representative.
31.03.2020 31.03.2019
- Other Service Income: To provide required details to the customer and enable space for advertising at the branches.
REVENUE FROM OPERATIONS
Note: 27A
g) There are no significant return / refund / other obligations for any of the above mentioned services.
(i) Interest - on financial assets measured at amortised cost ` in lakhs
(a) Loans Particulars Year ended Year ended
- Bills Discounting 721 1,027 31.03.2020 31.03.2019
- Term Loans 7,83,412 6,48,551 Note : 28 OTHER INCOME
(b) Bank Deposits Dividend Income from long-term investments 37 23
- Bank Deposits under lien 3,845 4,384 Gain on loss of control in Subsidiary - 2,029
- Other Bank Deposits free of lien 20,526 3,660 Rent 9 29
(c) Other Deposits Miscellaneous Income 16 40
- Deposits with Financial Institutions 3,961 - Total 62 2,121
Total (A) 8,12,465 6,57,622 ` in lakhs
Note: 27B Particulars Year ended Year ended
i) Fee & Commission income * 31.03.2020 31.03.2019
- Term loans 18,987 17,606 Note : 29 FINANCE COSTS
- Others 5,883 6,095 Interest on financial liabilities measured at amortised cost
Total (B) 24,870 23,701 - Debt Securities 1,01,821 1,36,560
*Services are transferred at a point in time - Borrowings Other than Debt securities 3,12,236 1,89,283
Note: 27C - Subordinated Liabilities 42,567 31,588
Net gain on fair value changes on FVTPL - Realised Others
Income from mutual funds 1,569 6,334 - Bank charges 1,363 1,383
Total (C) 1,569 6,334 - Interest on lease liability 1,183 -
Note: 27D Total 4,59,170 3,58,814
(i) Sale of Services (Refer note below) ` in lakhs
(a) Servicing and Collection fee on Assignment 485 242 Particulars Year ended Year ended
(b) Other Servicing Income 7,085 8,800 31.03.2020 31.03.2019
(c) Freight Income - 3,393
Note : 30 IMPAIRMENT ON FINANCIAL INSTRUMENTS
Total (D) 7,570 12,435
Loss Assets Written Off (Net) / disposal of repossessed assets* 30,427 24,248
Note: Timing of revenue recognition
Services transferred at a point in time 6,970 8,194 Impairment provision- Loans - measured at amortised cost 59,308 6,886
Services transferred over a time 600 606 Total 89,735 31,134
Total 7,570 8,800 * Includes Loss on disposal of repossessed vehicles - Gross - ` 5,304 lakhs for the year ended March 31, 2020 (` 9,959 lakhs - March 31, 2019)
235 236
` in lakhs Note : 33 Earnings per share
31.03.2020 31.03.2019 Particulars Year ended Year ended
31.03.2020 31.03.2019
Note : 31 EMPLOYEE BENEFITS EXPENSES
Profit After Tax (₹ in lakhs) 1,05,372 1,19,659
Salaries, Bonus and Commission 62,799 54,782
Preference Dividend Paid (including tax thereon) (₹ in lakhs) - -
Contribution to Provident and Other Funds
Profit After Tax Attributable to Equity Shareholders (₹ in lakhs) 1,05,372 1,19,659
- Employees' Provident Fund 2,913 2,257
Weighted Average Number of Equity Shares (Basic) 78,71,82,549 78,17,31,200
- Superannuation Fund 333 256
Add: Dilutive effect relating to ESOP/CCPS 8,80,135 5,77,995
Share based employee payments 1,161 811
Weighted Average Number of Equity Shares (Diluted) 78,80,62,834 78,23,09,195
Gratuity Expense (Refer note 37) 982 689
Earnings per Share - Basic (₹) 13.39 15.31
Staff Welfare Expenses 1,844 1,673 Earnings per Share - Diluted (₹) 13.37 15.30
Total 70,032 60,468 Face Value Per Share (₹) 2 2
` in lakhs Note:
Particulars Year ended Year ended Earnings per Share calculations are done in accordance with Ind AS 33 "Earnings per Share". Equity shares have been divided into face value
31.03.2020 31.03.2019 of ` 2 per share in pursuant to resolution passed through a postal ballot for which the results have been declared on June 3, 2019 and
Note : 32 OTHER EXPENDITURE consequently, the number of equity shares for the year ended March 31, 2019 have been retrospectively adjusted as required by Ind AS 33.
Rent and facility charges 1,187 5,349
Rates and Taxes 1,197 755 Note : 34 Income tax reconciliation
Energy cost 1,444 1,216 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
Repairs and Maintenance 409 319 Indian corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the
Communication Costs 3,104 2,557 year ended March 31, 2020 and March 31, 2019, is as follows:
` in lakhs
Business development expense 27 34 Particulars Year ended Year ended
Brokerage 161 177 31.03.2020 31.03.2019
Deputation charges - 3,575 Accounting profit before tax from continuing operations 1,55,882 1,83,153
Freight charges - 3,369 Income tax rate of 25.168% (March 31, 2019: 34.944%) 39,235 64,000
Printing and Stationery 1,456 1,255 Effects of:
Advertisement and publicity Expenses 1,454 1,600 Impact of difference in tax base for Donations & CSR expense 324 461
Directors Fees, allowances and expenses 87 69 Share based payment expense – No deduction claimed under tax 290 279
Auditors' Remuneration 169 81 Impact of Deduction u/s 35(1)(ii) (189)
Legal and Professional Charges 4,527 4,710 Impact of Deduction u/s 80JJA (19) (360)
Insurance 1,579 1,192 Other adjustments 733 (732)
Travelling and Conveyance 5,683 4,672 Enacted tax rate on opening Deferred tax asset 12,845 -
Information Technology Expenses 2,569 2,581 Income tax expense reported in consolidated statement of Profit and Loss 53,408 63,459
Loss on Sale of Property, Plant and Equipment (Net) 13 17 The effective income tax rate for March 31, 2020 is 25.17% (March 31, 2019: 34.944%).
Change in fair value of financial instruments 140 - Note : 35 TRANSFER OF FINANCIAL ASSETS
Recovery Charges 28,959 20,294
35.1 Transferred financial assets that are not derecognised in their entirety
Corporate Social Responsibility Expenditure (Refer Note 32.1) 2,888 2,318
Outsource cost 24,017 15,294 The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred
Miscellaneous Expenses (Refer note 32.2) 1,452 430 financial assets do not qualify for derecognition, together with the associated liabilities:
82,522 71,864 A) Securitisation
Less : Expenses Recovered (143) (249)
The Group has Securitised certain loans, however the Group has not transferred substantially all risks and rewards, hence these assets
Total 82,379 71,615
have not been de-recognised.
32.1 Details of CSR expenditure ` in lakhs
Year ended Year ended Particulars As at As at
31.03.2020 31.03.2019
31.03.2020 31.03.2019
Securitisations
Gross Amount required to be spent towards CSR u/s 135 (5) of Companies Act , 2013 2,887 2,305
Carrying amount of transferred assets measured at amortised cost 4,92,803 5,64,273
Amount spent during the year
Carrying amount of associated liabilities (Borrowings other than Debt securities - measured at amortised cost) 4,63,131 5,49,261
(a) Construction/ acquisition of asset - -
Fair value of assets 4,85,991 5,87,198
(b) Others 2,888 2,305
Fair value of associated liabilities 4,65,551 5,50,860
32.2 Donation to electoral trust 500 - Net position at Fair Value 20,440 36,338
237 238
B) Direct bilateral assignment Note : 37 RETIREMENT BENEFIT
The Company has transferred certain loans (measured at amortised cost) by way of direct bilateral assignment, as a source of finance. A) Defined contribution plan
As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the buyer, the assets have A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions and where there is no legal or
been de-recognised from the Group’s balance sheet. constructive obligation to pay further contributions. During the period, the Group recognised Rs 2,913 lakhs (Previous year - Rs 2,257 lakhs) to
Provident Fund under Defined Contribution Plan, Rs 333 lakhs (Previous year - Rs 256 lakhs) for Contributions to Superannuation Fund and Rs
The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain/(loss) on
108 lakhs (Previous year - Rs 208 lakhs) for Contributions to Employee State Insurance Scheme in the Statement of Profit and Loss.
derecognition, per type of asset.
B) Gratuity
` in lakhs
Particulars As at As at The Group’s defined benefit gratuity plan requires contributions to be made to a separately administered fund. The gratuity plan is funded
31.03.2020 31.03.2019 with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee
Assignment who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of
Carrying amount of de-recognised financial asset 5,12,585 1,67,117 service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the statement
Carrying amount of Retained Assets at amortised cost 55,789 19,020 of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:
Change in Defined Benefit Obligation and Fair Value of Plan assets:
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Assignment Defined Benefit Obligation at the beginning of the year 4,586 3,152
Gain on sale of the de-recognised financial asset 24,727 8,670 Current Service Cost 908 716
Interest Cost 334 240
35.2 Transferred financial assets that are derecognised in their entirety but where the Group has continuing involvement Remeasurement Losses/(Gains)
The Group has not transferred any assets that are derecognised in their entirety where the Group continues to have continuing a) Effect of changes in financial assumptions 312 88
involvement.
c) Changes in demographic assumptions (4) -
Benefits paid (174) (177)
Transfer in / Out (18) 17
Note : 36 Micro, Small & Medium Enterprises Defined Benefit Obligation at the end of the year 6,118 4,586
Based on and to the extent of the information received by the Group from the suppliers during the year regarding their status under the Change in Fair Value Plan Assets
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, there are no amounts due to Fair Value of Plan Assets at the Beginning of the year 3,555 3,480
MSME as at March 31, 2020 and as at March 31, 2019 Expected Returns on Plan Assets 260 264
Employer’s Contribution 1062 43
The relevant particulars are furnished below: Benefits Paid (174) (177)
` in lakhs Return on plan assets (excluding amount recognized in net interest expense) (24) (72)
Transfer in / Out - 17
31.03.2020 31.03.2019
Fair Value of Plan Assets at the end of the year 4,679 3,555
Principal amount due to suppliers under MSMED Act, as at the year end 70 -
Amount Recognised in the Balance Sheet
Interest accrued and due to suppliers under MSMED Act, on the above amount as at the year end - - Fair Value of Plan Assets as at the End of the year 4,679 3,555
Payment made to suppliers (other than interest) beyond the appointed day, during the year - - Defined Benefit Obligation at the End of the year (6,118) (4,586)
Interest paid to suppliers under MSMED Act (other than Section 16) - - Amount Recognised in the Balance Sheet (1,439) (1,031)
Interest paid to suppliers under MSMED Act (Section 16) - - Cost of the Defined Benefit Plan for the year
Interest due and payable to suppliers under MSMED Act, for payments already made - - Current Service Cost 908 716
Interest accrued and remaining unpaid at the year end to suppliers under MSMED Act - - Net interest expense 334 240
Expected Return on Plan Assets (260) (264)
Net Cost recognized in the statement of Profit and Loss 982 692
Remeasurement Losses /(Gains)
a) Effect of changes in financial assumptions 312 87
c) Changes in demographic assumptions (4)
d) Return on plan assets (excluding interest income) 24 72
Net cost recognised in Other Comprehensive Income 506 709
Assumptions
Future salary increase 7.50% p.a. 7.50% p.a.
239 240
Note : 37 RETIREMENT BENEFIT (Contd.)
` in lakhs Note : 38 SEGMENT INFORMATION
The Group is primarily engaged in the business of financing. All the activities of the Group revolve around the main business. Further, the
31.03.2020 31.03.2019
Group does not have any separate geographic segments other than India
Attrition Rate
- Senior management 13% p.a. 13% p.a. During year ended March 31, 2020, for management purposes, the Group has been organised into three operating segments based on
- Middle management 13% p.a 13% p.a products and services, as follows
- Others 13% p.a. 13% p.a. - Vehicle Finance Loans - Loans to customers against purchase of new/used vehicles, tractors, construction equipments and loan to
Expected rate of return on Plan Assets 7.50% p.a. 7.50% p.a.
automobile dealers.
Mortality Indian Assured Indian Assured
Lives (2012-14) Lives (2006-08) - Home Equity - Loans to customer against immovable property
Ultimate Ultimate - Others - Loans given for acquisition of residential property, loan against shares, and other unsecured loans & security broking and
Maturity profile of Defined Benefit Obligations insurance agency business.
Weighted average duration (Based on discounted cash flows) 6 Years 6 Years
The Chief Operating Decision Maker (CODM) monitors the operating results of its business units separately for making decisions about
Expected Cash flows over the subsequent periods: (valued on discounted basis)
Within the next 12 months (next annual reporting period) 664 555 resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured
Between 2 and 5 years 3,008 2,300 consistently with operating profits or losses in the financial statements. However, income taxes are managed on an entity as whole basis
Between 5 and 10 years 2,874 2,289 and are not allocated to operating segments..
Beyond 10 Years 3,363 2,758
Total Expected Cash flows 9,909 7,902 ` in lakhs
` in lakhs
Particulars Vehicle Home Others Unallocable Total
Particulars 31.03.2020 31.03.2019
finance equity
Increase Decrease Increase Decrease
Sensitivity Analysis: Revenue from Operations
Discount Rate (+/- 1%) 6,866 7,775 4,297 4,825 - Interest Income 6,26,829 1,25,291 32,032 28,313 8,12,465
Salary Growth Rate (+/- 1%) 7,718 6,901 4,844 4,279 - Net gain on derecognition of financial instruments 9,303 6,180 9,244 - 24,727
Attrition Rate (+/- 50% of attrition rates) 7,050 7,636 4,454 4,648 under amortised cost category
Mortality Rate (+/- 10% of mortality rates) 5,987 5,987 4,456 4,456 - Fee Income 16,722 2,003 6,101 44 24,870
Notes: - Net gain on Fair value change on financial instrument - - 6 1,563 1,569
1. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors. - Sale of Services 6,560 731 279 - 7,570
2. The Group’s best estimate of contribution during the next year is ₹ 2,623 lakhs (March 31, 2019 -1,793 lakhs). Segment revenue from Operations (I)
3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
- Other income (II) - - 35 27 62
term of the obligation.
Total Segment Income - (I) + (II) 6,59,414 1,34,205 47,697 29,947 8,71,263
4. The entire Plan Assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC).
Expenses
C) Compensated Absences - Finance costs 3,47,457 79,477 18,247 13,989 4,59,170
Particulars Year ended Year ended - Impairment of Financial Instruments 77,581 9,591 1,828 735 89,735
31.03.2020 31.03.2019
- Employee benefits expense 54,205 6,916 8,707 204 70,032
Assumptions
- Depreciation and amortisation expense 9,068 992 691 374 11,125
Future salary increase 7.50% p.a. 7.50% p.a. - Other expenses 68,481 5,610 4,443 3,845 82,379
Attrition Rate Segment Expenses 5,56,792 1,02,586 33,916 19,147 7,12,441
- Senior management 13% p.a. 13% p.a. Segment Profit before taxation 1,02,622 31,619 13,781 10,800 1,58,822
- Middle management 13% p.a. 13% p.a.
Tax expense 53,408
- Others 13% p.a. 13% p.a.
Mortality Indian Assured Indian Assured Share of loss from associate (42) (42)
Lives (2012-14) Lives (2006-08) Profit for the year 1,05,372
Ultimate Ultimate
Notes:
1. The Group has not funded its Compensated Absences liability and the same continues to remain as unfunded as at March 31, 2020.
2. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated
term of the obligation.
241 242
Note : 38 SEGMENT INFORMATION (Contd.) ` in lakhs Note : 39 RELATED PARTY DISCLOSURES
Year ended March 31, 2019 List of Related Parties
Particulars Vehicle Home Others Unallocable Total
• Holding Group : Cholamandalam Financial holdings Limited (formerly known as TI Financial Holdings Limited)
finance equity
• Entity having significant influence over holding Group: Ambadi Investments Limited
• Subsidiaries of Entity having significant influence over holding Group: Parry Enterprises Limited and Parry Agro Limited.
- Interest Income 5,19,129 1,08,421 22,078 7,994 6,57,622
• Fellow Subsidiaries: Cholamandalam MS General Insurance Company Limited, Cholamandalam Health Insurance Limited
- Net gain on derecognition of financial instruments - 8,670 - - 8,670
• Joint Venture of Holding Group: Cholamandalam MS Risk Services Limited
under amortised cost category
• Associate : White Data Systems India Private Limited (Effective Oct’ 2018)
- Fee Income 15,788 1,711 6,203 (1) 23,701
• Key Managerial Personnel:
- Net gain on Fair value change on financial instrument - - 6 6,328 6,334
- Sale of Services 8,064 237 3,514 620 12,435 • Mr. N Srinivasan, Executive Vice Chairman and Managing Director (upto August 18, 2018);
Segment revenue from Operations (I) • Mr. Arun Alagappan, Executive Director (From August 19, 2017) and Managing Director (From November 15, 2019)
- Other income (II) - - 2,054 67 2,121 • Mr. D. Arulselvan, Chief Financial Officer
Total Segment Income - (I) + (II) 5,42,981 1,19,039 33,855 15,008 7,10,883 • Ms. P. Sujatha, Company Secretary
Expenses • Mr. Ravindra Kumar Kundu, Executive Director (From January 23, 2020)
- Finance costs 2,80,602 70,732 12,167 (4,687) 3,58,814 • Non-Executive Directors
- Impairment of Financial Instruments 27,291 (433) 4,276 - 31,134 1. Mr. M B N Rao (upto July 26, 2018)
- Employee benefits expense 50,552 5,287 4,436 193 60,468 2. Mr. V Srinivasa Rangan (upto March 31, 2019)
- Depreciation and amortisation expense 4,962 513 224 - 5,699 3. Ms. Bharati Rao (up to July 30, 2019)
- Other expenses 52,667 5,228 11,383 2,337 71,615 4. Mr. Ashok Kumar Barat
Segment Expenses 4,16,074 81,327 32,486 (2,157) 5,27,730 5. Mr. M M Murugappan (From May 31, 2018)
Segment Profit before taxation 1,26,907 37,712 1,369 17,165 1,83,153 6. Mr. N Ramesh Rajan (From October 30, 2018)
Tax expense 63,459 7. Mr. Rohan Verma (From March 25, 2019)
Share of loss from associate - - (35) - (35) 8. Ms. Bhama Krishnamurthy (From July 30, 2019)
Profit for the year - - - - 1,19,659 Note:
Related party relationships are as identified by the Management and relied upon by the Auditors
Particulars Vehicle Home Others Unallocable Total 31.03.2020 31.03.2019
finance equity Note : 39 a) TRANSACTIONS DURING THE YEAR
As on March 31, 2020 Dividend Payments (Equity Shares)
Segment Assets 42,15,030 10,53,555 2,76,249 55,44,834 a) Cholamandalam Financial Holdings Limited 7,634 4,709
Unallocable Assets 8,60,069 8,60,069 b) Ambadi Investments Limited 708 456
c) Parry Enterprises Limited 0* 0*
Amount received towards reimbursement of expenses
a) Cholamandalam Financial Holdings Limited 100 73
Unallocable Liabilities 7,50,241 7,50,241 b) Cholamandalam MS General Insurance Company Limited 18 28
Total Liabilities 55,84,917 c) White Data Systems India Private Limited - 16
As on March 31, 2019 Services Received
Segment Assets 40,60,588 9,95,439 2,11,088 52,67,115 a) Cholamandalam MS General Insurance Company Limited 164 124
Unallocable Assets 4,81,897 4,81,897 b) Parry Enterprises Limited 714 748
c) CE Info systems Private Limited 6 -
d) White Data Systems India Private Limited 32 33
Services rendered
Unallocable Liabilities 3,67,483 3,67,483 a) Cholamandalam MS General Insurance Company Limited 3,616 1,653
Total Liabilities 51,28,141 b) Cholamandalam Financial Holdings Limited 0* 0*
In computing the segment information, certain estimates and assumptions have been made by the management, which have been relied upon. Expense recovered – Rent
a) Cholamandalam MS General Insurance Company Limited 42 56
As the asset are allocated to segment based on certain assumptions, hence additions to the Property, plant and equipment have not disclosed
separately for each specific segment. b) Parry Enterprises Limited 1 1
c) Cholamandalam MS Risk Services Limited 0* 0*
There are no revenue from transactions with a single external customer or counter party which amounted to 10% or more of the Group's total
revenue in the Current year and Previous year.
243 244
` in lakhs i) The Group is of the opinion that the above demands are not sustainable and expects to succeed in its appeals / defence.
Particulars Year ended Year ended ii) It is not practicable for the Group to estimate the timings of the cashflows, if any, in respect of the above pending resolution of the
31.03.2020 31.03.2019
respective proceedings.
Note : 39 a) TRANSACTIONS DURING THE YEAR (Contd.)
iii) The Group does not expect any reimbursement in respect of the above contingent liabilities.
Loans given
iv) Future Cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various
a) White Data Systems India Private Limited 340 900
forums/authorities.
Loans recovered
a) White Data Systems India Private Limited 340 572 (b) Commitments ` in lakhs
Interest Expense Particulars As at As at
a) Cholamandalam MS General Insurance company Limited 1,696 1,991 31.03.2020 31.03.2019
Interest Income Capital commitments 2,883 1807
a) White Data Systems India Private Limited 28 18 Investment commitment to Fearing Capital India Evolving Fund - 16
Commission and Sitting fees to non-executive Directors 87 68 Disbursements - Undrawn lines 84,535 73,345
` in lakhs (c) The Supreme Court had passed judgement on 28th February 2019 that all allowances paid to employees are to be considered for
Particulars Year ended Year ended the purposes of PF wage determination. There are numerous interpretative issues relating to the above judgement. The Group has
31.03.2020 31.03.2019
complied the same on prospective basis from the date of the SC order.
Note : 39 b) BALANCES OUTSTANDING AT THE PERIOD END
Rental Deposit Receivable / (Payable) (d) Bank Guarantee: ` in lakhs
a) Cholamandalam MS General Insurance Limited - (21) Particulars As at As at
Loans - Receivable 31.03.2020 31.03.2019
a) White Data Systems India Private Limited 340 340 Outstanding bank guarantees given to stock exchanges/stock holding corporation 1,625 1,639
Debt Securities - Payable of India limited to meet margin requirements
a) Cholamandalam MS General Insurance Company Limited (19,070) (22,249)
Note : 41 CHANGES IN PROVISIONS
Other Receivable / (Payable) ` in lakhs
a) Cholamandalam Financial Holdings Limited 0* - Particulars As at Additional Utilisation/ As at
b) Cholamandalam MS General Insurance Company Limited 250 650 31.03.2019 Provision Reversal 31.03.2020
c) White Data Systems India Private Limited (7) - Provision for Contingencies and Service Tax claims 3,837 1 - 3,838
d) Parry Enterprises Limited 1 - Provision for Expected credit loss allowance towards Undrawn commitments 51 80 - 131
e) Cholamandalam MS Risk services Limited 0* -
` in lakhs
f ) Key Managerial personnel 2 NA
Particulars As at Additional Utilisation/ As at
31.03.2018 Provision Reversal 31.03.2019
` in lakhs
Provision for Contingencies and Service Tax claims 3,813 24 - 3,837
Nature of Transaction Year ended Year ended
31.03.2020 31.03.2019 Provision for Expected credit loss allowance towards Undrawn commitments 12 39 - 51
Note : 39 c) KEY MANAGERIAL PERSONNEL Undrawn loan commitments are commitments under which the Group is required to provide a loan under pre-sanctioned terms to
Short- term employee benefits 656 799 the customer.
Post - employment pension (defined Contribution) 66 81 The undrawn commitments provided by the Group are predominantly in the nature of limits provided for Automobile dealers based
Dividend Payments 24 16 on the monthly loan conversions and partly disbursed loans for immovable properties. These undrawn limits are converted within
Share based payments 48 56 a short period of time and do not generally remain undisbursed / undrawn beyond one year from the reporting date. The undrawn
commitments amount outstanding as at March 31, 2020 is ₹ 84,535 lakhs (₹ 73,345 lakhs as at March 31, 2019).
* Represents amounts less than ₹ 1 lakh
The Group creates expected credit loss provision on the undrawn commitments outstanding as at the end of the reporting period
Note : 40 CONTINGENT LIABILITIES AND COMMITMENTS and the related expected credit loss on these commitments as at March 31, 2020 is ₹ 131 lakhs (₹ 51 lakhs as at March 31, 2019).
(a) Contested Claims not provided for: ` in lakhs Note : 42 ESOP DISCLOSURE
ESOP 2007
31.03.2020 31.03.2019
Income tax and Interest on Tax issues where the Group has gone on appeal 23,104 17,316 The Board at its meeting held on June 22, 2007, approved an issue of Stock Options up to a maximum of 5% of the issued Equity
Decided in the Group’s favour by Appellate Authorities and for which the Department is on further 21,898 21,292 Capital of the Company (before Rights Issue) aggregating to 1,904,162 Equity Shares (prior to share split) in a manner provided in
appeal with respect to Income Tax the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines.
Sales Tax issues pending before Appellate Authorities in respect of which the Group is on appeal. 2,660 5,081 ESOP 2016
Service Tax issues pending before Appellate Authorities in respect of which the Group is on appeal. 19,978 19,978 The Board at its meeting held on October 7, 2016, approved to create, and grant from time to time, in one or more tranches, not
Disputed claims against the Group lodged by various parties under litigation (to the extent quantifiable) 8,526 6,761 exceeding 31,25,102 Employee Stock Options to or for the benefit of such person(s) who are in permanent employment of the
Order in respect of alleged violations of the Provisions of SEBI Act 7 7 company including some of subsidiaries, managing director and whole time director, (other than promoter/promoter group of the
Disputed claims pertaining to Service Tax payable on turnover charges and ineligible Service Tax Input Credit 68 68 company, independent directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the
245 246
company), as may be decided by the board, exercisable into not more than 31,25,102 equity shares of face value of ` 10/- each fully The movement in Stock Options during the previous year are given below:
paid-up, on such terms and in such manner as the board may decide in accordance with the provisions of the applicable laws and Employee Stock Option Plan 2007
the provisions of ESOP 2016.
In this regard, the Group has recognised expense amounting to ` 1,161 lakhs for employees services received during the year, outstanding During the Year 2018-19
vested unvested
outstanding
shown under Employee Benefit Expenses (Refer Note 31). but not
exercised
The movement in Stock Options during the current period are given below: Particulars Date of As at Options Options Options As at As at As at Exercise Weighted
Employee Stock Option Plan 2007 Grant 31.03.2018 Granted Cancelled Exercised 31.03.2019 31.03.2019 31.03.2019 Price Average
/ lapsed and Remaining
Options Options
Options Options allotted Contractual
outstanding During the Year vested unvested
outstanding
but not Life
exercised GT 30 30-Jul-07 - - - - - - -
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted JUL 2007
Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average GT 25 25-Jan-08 - - - - - - -
of options / Expired and Remaining JAN 2008
on account allotted Contractual GT 25 25-Apr-08 300 - - 300 - - - 192 -
of share split* Life APR 2008
GT 25 25-Apr-08 - - - - - - - - 38 - GT 27 27-Jan-11 15,625 - - 6,462 9,163 9,163 - 188 -
APR 2008 JAN 2011A
GT 27 27-Jan-11 9,163 36,652 - - 22,695 23,120 23,120 - 38 - GT 27 27-Jan-11 5,976 - - - 5,976 5,976 - 188 -
JAN 2011A JAN 2011B
GT 27 27-Jan-11 5,976 23,904 - - 29,880 - - - 38 - GT 30 30-Apr-11 14,357 - 400 6,009 7,948 7,948 - 163 -
JAN 2011B APR 2011
GT 30 30-Apr-11 7,948 31,792 - - 14,500 25,240 25,240 - 33 - GT 27 27-Oct-11 8,036 - - 100 7,936 7,936 - 155 -
APR 2011 OCT 2011
GT 27 27-Oct-11 7,936 31,744 - - 9,920 29,760 29,760 - 31 - Total 44,294 - 400 12,871 31,023 31,023 -
OCT 2011
Total 31,023 1,24,092 - - 76,995 78,120 78,120 -
Employee Stock Option Plan 2016
Employee Stock Option Plan 2016
Options Options
Options Options outstanding During the Year 2018-19
vested unvested
outstanding
outstanding During the Year vested unvested
outstanding but not
but not exercised
exercised Particulars Date of As at Options Options Options As at As at As at Exercise Weighted
Particulars Date of As at Addition Options Options Options As at As at As at Exercise Weighted Grant 31.03.2018 Granted Cancelled Exercised 31.03.2019 31.03.2019 31.03.2019 Price Average
Grant 31.03.2019 in number Granted Forfeited Exercised 31.03.2020 31.03.2020 31.03.2020 Price Average / lapsed and Remaining
of options / Expired and Remaining allotted Contractual
on account allotted Contractual Life
of share split* Life
GT 25 25-Jan-17 5,22,653 - 34,940 14,871 4,72,842 1,70,418 3,02,424 1,010 1.32 years
GT 25 25-Jan-17 4,72,842 18,91,368 - 17,920 2,27,690 21,18,600 13,76,010 7,42,590 202 0.82 years
JAN 2017
JAN 2017
GT 30 30-Jan-18 49,040 1,96,160 - - 6,715 2,38,485 1,46,535 91,950 262 0.84 years GT 30 30-Jan-18 55,920 - 6,880 - 49,040 12,260 36,780 1,310 1.34 years
JAN 2018 JAN 2018
GT 30 30-Jan-18 17,960 71,840 - - - 89,800 35,920 53,880 262 1.34 years GT 30 30-Jan-18 26,940 - 8,980 - 17,960 3,592 14,368 1,310 1.96 years
JAN 2018A JAN 2018A
GT 23 23-Apr-18 8,980 35,920 - - - 44,900 8,980 35,920 312 1.19 years GT 23 23-Apr-18 - 8,980 - - 8,980 - 8,980 1,562 1.77 years
APR 2018 APR 2018
GT 26 26-Jul-18 54,972 2,19,888 - - - 2,74,860 68,715 2,06,145 299 0.82 years GT 26 26-Jul-18 - 54,972 - - 54,972 - 54,972 1,497 1.45 years
JUL 2018
GT 30 30-Oct-18 73,460 2,93,840 - - - 3,67,300 73,460 2,93,840 254 1.71 years JUL 2018
OCT 2018 GT 30 30-Oct-18 - 73,460 - - 73,460 - 73,460 1,269 2.29 years
GT 19 19-Mar-19 1,17,692 4,70,768 - - - 5,88,460 1,46,060 4,42,400 278 2.09 years OCT 2018
MAR2019 GT 19 19-Mar-19 - 1,17,692 - - 1,17,692 - 1,17,692 1,390 2.67 years
GT 30 30-Jul-19 - - 31,632 - - 31,632 - 31,632 248 0.83 years MAR 2019
JUL 2019 Total 6,05,513 2,55,104 50,800 14,871 7,94,946 1,86,270 6,08,676
GT 05 05-Nov-19 - - 2,75,600 - - 2,75,600 - 2,75,600 316 2.30 years
NOV 2019
GT 23 23-Jan-20 - - 53,000 - - 53,000 - 53,000 317 2.52 years
JAN 2020
Total 7,94,946 31,79,784 3,60,232 17,920 2,34,405 40,82,637 18,55,680 22,26,957
*Equity shares of face value of ₹ 10/- have been split into face value of ₹ 2 per share on June 18, 2019, pursuant to resolution passed
through postal ballot on June 3, 2019
247 248
Note : 42 ESOP DISCLOSURE (Contd.) Note : 42 ESOP DISCLOSURE (Contd.)
The following tables list the inputs to the Black Scholes model used for the plans for the year ended March 31, 2020 ESOP 2016
ESOP 2007 Variables

Variables Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value
Interest Rate Volatility underlying of the Option
Date of Grant Risk Free Expected Life Expected Dividend Yield Price of the Fair Value Share in the (₹)
Interest Rate Volatility underlying of the Option Market at the time
Share in the (₹) of the Option
Market at the time
of the Option Grant (₹)
Grant (₹) 25-Jan-17 6.36% - 6.67% 3.5 -6.51 years 33.39% -34.47% 0.54% 1,010.00 401.29
30-Jul-07 7.10% - 7.56% 3-6 years 40.64% -43.16% 5.65% 193.40 61.42 30-Jan-18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 496.82
30-Jan-18 7.11%-7.45% 3.5 – 5.50 years 30.16%-31.46% 0.42% 1,309.70 531.84
24-Oct-07 7.87% -7.98% 3-6 years 41.24% -43.84% 5.65% 149.90 44.25
23-Apr-18 7.45%-7.81% 3.51 -6.51 years 30.33%-32.38% 0.42% 1,562.35 646.08
25-Jan-08 6.14% -7.10% 3-6 years 44.58% -47.63% 5.65% 262.20 78.15 26-Jul-18 7.71%-7.92% 3.51 -5.51 years 30.56%-31.83% 0.43% 1,497.30 586.32
25-Apr-08 7.79% - 8.00% 2.5-5.5 years 45.78% - 53.39% 3.97% 191.80 76.74 30-Oct-18 7.61%-7.85% 3.51 -6.51 years 32.34%-32.70% 0.51% 1,268.50 531.36
30-Jul-08 9.14% - 9.27% 2.5-5.5 years 46.52% - 53.14% 3.97% 105.00 39.22 19-Mar-19 6.91% - 7.25% 3.51 -6.51 years 32.19% -32.59% 0.47% 1,390.05 564.13
24-Oct-08 7.54% - 7.68% 2.5-5.5 years 48.2% - 55.48% 3.97% 37.70 14.01 30-Jul-19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 248.20 83.66*
05-Nov-19 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 316.00 112.09*
27-Jan-11
23-Jan-20 6.15% - 6.27% 3.51 -4.51 years 32.21% -32.93% 0.52% 317.00 109.51*
- Tranche I 8% 4 years 59.50% 10% 187.60 94.82
* Fair value option of equity shares issued under this grant is post share split with a face value of ₹ 2/- each
- Tranche II 8% 3.4 years 61.63% 10% 187.60 90.62
30-Apr-11 8% 4 years 59.40% 25% 162.55 73.07 Note : 43 CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
` in lakhs
28-Jul-11 8% 4 years 58.64% 25% 175.35 79.17 Particulars April 01, 2019 Cash flows Exchange Other March 31, 2020
27-Oct-11 8% 4 years 57.52% 25% 154.55 67.26 Difference
Liabilities 50,56,674 4,44,719 12,623 (13,473) 55,00,543
The shareholders of the Company, at the 34th Annual General Meeting held on July 30, 2012, authorised extension of exercise period
` in lakhs
from 3 years from the date of vesting to 6 years from the date of vesting. Accordingly, the Company has measured the fair value of the
Particulars April 01, 2018 Cash flows Exchange Other March 31, 2019
options using the Black Scholes model immediately before and after the date of modification to arrive at the incremental fair value Difference
arising due to the extension of the exercise period. The incremental fair value so calculated is recognised from the modification date Liabilities 38,33,034 12,20,048 13,779 (10,072) 50,56,674
over the vesting period in addition to the amount based on the grant date fair value of the stock options.
(i) Others column represents the effect of interest accrued but not paid on borrowing, amortisation of processing fees etc
The incremental (benefit)/cost due to modification of the exercise period from 3 years to 6 years from the date of vesting for the year
(ii) Liabilities represents of Debt securities, Borrowings (other than debt securities) and Subordinated Liabilities
ended March 31, 2020 is ₹ Nil (March 31,2019- ₹ Nil)
Note : 44 MATURITY ANALYSIS

The fair value of the options has been calculated using the Black Scholes model on the date of modification.
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled.
The assumptions considered for the calculation of the fair value (on the date of modification) are as follows: ` in lakhs
Maturity
Variables Post Modification Particulars Amount Within After
12 months 12 months
Risk Free Interest Rate 7.92% - 8.12%
Expected Life 0.12 years - 6.25 years Financial Assets
Expected Volatility 28.28% - 63.00% Cash and Cash Equivalents 3,49,514 3,49,514 -
Dividend Yield 1.18% Bank balances Other than Cash and Cash Equivalents 3,50,560 3,15,590 34,970
Derivative financial instruments 11,420 1,711 9,709
Price of the underlying share in market at the time of the option grant.(₹) 212.05
Receivables
i) Trade Receivables 1,503 1,503 -
Loans 55,39,573 12,27,903 43,11,670
Investments
i) Associate 2,477 - 2,477
ii) Others 793 - 793
249 250
Maturity Maturity
Particulars Amount Within After Particulars Amount Within After
12 months 12 months 12 months 12 months
Note : 44 MATURITY ANALYSIS (Contd.) Note : 44 MATURITY ANALYSIS (Contd.)
Other Financial Assets 43,913 15,470 28,443 Other Non-Financial Assets 1,817 1,121 696
Total Financial Assets 63,04,805 19,16,743 43,88,062 Total Non- Financial Assets 82,138 1,121 81,017
Non- Financial Assets Financial Liabilities
Current Tax Assets (Net) 15,947 - 15,947 Derivative Financial Instruments 841 - 841
Deferred Tax Assets (Net) 52,747 - 52,747 Payables
Investment Property 14 - 14 i) Trade Payables 23,145 23,145 -
Property, Plant and Equipment 26,236 - 26,236 ii) Other Payables 12,894 12,894 -
Intangible Assets Under Development 1,060 - 1,060 Debt Securities 14,18,431 9,59,024 4,59,407
Other Intangible Assets 2,067 - 2,067 Borrowings (Other than Debt Securities) 32,12,375 8,65,072 23,47,303
Other Non-Financial Assets 2,027 78 1,949 Subordinated Liabilities 4,25,868 47,164 3,78,704
Total Non- Financial Assets 1,00,098 78 1,00,020 Other Financial Liabilities 21,676 21,404 272
Financial Liabilities Total Financial Liabilities 51,15,230 19,28,703 31,86,527
Derivative Financial Instruments - - - Non-Financial Liabilities
Payables Provisions 7,466 7,466 -
i) Trade Payables 22,047 22,047 - Other Non-Financial Liabilities 5,445 3,360 2,085
ii) Other Payables 9,949 9,949 - Total Non-Financial Liabilities 12,911 10,826 2,085
Debt Securities 7,32,683 4,10,141 3,22,542
Borrowings (Other than Debt Securities) 43,27,308 11,89,717 31,37,591 Note : 45 CAPITAL MANAGEMENT
Subordinated Liabilities 4,40,552 52,023 3,88,529 The Group maintains an actively managed capital base to cover risks inherent in the business, meeting the capital adequacy requirements
Other Financial Liabilities 39,485 29,374 10,111 of Reserve Bank of India (RBI), maintain strong credit rating and healthy capital ratios in order to support business and maximise shareholder
Total Financial Liabilities 55,72,024 17,13,251 38,58,773 value. The adequacy of the Group’s capital is monitored by the Board using, among other measures, the regulations issued by RBI.
Provisions 9,151 9,151 - The Group manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk
Other Non-Financial Liabilities 3,742 1,764 1,978 characteristics of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment
Total Non-Financial Liabilities 12,893 10,915 1,978 to shareholders, return capital to shareholders or issue capital securities.
As on March 31, 2019 45.1 Risk Management
Financial Assets
The Group is committed to create value for its stakeholders through sustainable business growth and with that intent has put in place
Cash and Cash Equivalents 3,16,435 3,16,435 -
a robust risk management framework to promote a proactive approach in reporting, evaluating and resolving risks associated with the
Bank Balances Other than Cash and Cash Equivalents 54,411 20,500 33,911
Derivative Financial Instruments 8,869 7,229 1,640 business. Given the nature of the business the Group is engaged in, the risk framework recognizes that there is uncertainty in creating and
Receivables - sustaining such value as well as in identifying opportunities. Risk management is therefore made an integral part of the Group’s effective
i) Trade Receivables 4,128 4,128 - management practice.
ii) Other Receivables 3,908 3,908 - Risk Management Framework:
Loans 52,61,077 16,40,761 36,20,316
Group’s risk management framework is based on
Investments
i) Associate 2,519 - 2,519 (a) Clear understanding and identification of various risks
ii) Others 1,631 - 1,631
(b) Disciplined risk assessment by evaluating the probability and impact of each risk
Other Financial Assets 13,896 5,506 8,390
Total Financial Assets 56,66,874 19,98,467 36,68,407 (c) Measurement and monitoring of risks by establishing key risk indicators with thresholds for all critical risks and
Non- Financial Assets (d) Adequate review mechanism to monitor and control risks.
Current Tax Assets (Net) 16,181 - 16,181
Group’s risk management division works as a value center by constantly engaging with the business providing reports based on key
Deferred Tax Assets (Net) 46,012 - 46,012
Investment Property 47 - 47 analysis and insights. The key risks faced by the Group are credit risk, liquidity risk, interest rate risk, operational risk, reputational and
Property, Plant and Equipment 14,464 - 14,464 regulatory risk, which are broadly classified as credit risk, market risk and operational risk. The Group has a well-established risk reporting
Intangible Assets Under Development 1,397 - 1,397 and monitoring framework. The in-house developed risk monitoring tool, Chola Composite Risk Index, measures the movement of top
Other Intangible Assets 2,220 - 2,220 critical risks. This provides the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified
key risk indicators and are aligned to the overall Group’s risk appetite framework approved by the board. The Group’s risk management
initiatives and risk MIS are reviewed monthly by the top management. This process enables the Group to reassess the top critical risks in a
changing environment that need to be focused on.
251 252
Risk Governance structure: Car and Muti Utility Vehicles, three wheeler and Small Commercial Vehicles, Refinance against existing vehicles, older vehicles (first time
buyers), Tractors and Construction Equipment have portfolio share between 5% and 22% leading to well diversified sub product mix.
The Group’s overall risk governance is handled by three lines of defense to ensure the effectiveness of an organization’s risk management
framework including monitoring and assurance functions within the organization. Home Equity is mortgage loan against security of existing immovable property (primarily self-occupied residential property) to self-
employed non-professional category of borrowers and contributes to 22% of the lending book of the Group as of March 31, 2020 (21% as
a) Under the first line of defence, risk champions are identified in each functional and business unit to take ownership, responsibility and
of March 31, 2019). Portfolio is concentrated in North (41%) with small presence in East (4%). The remaining is evenly distributed between
accountability for directly assessing, controlling and mitigating risks.
South and Western parts of the country.
b) The risk management team under the guidance of the risk management committee acts as the second line of defense. The risk
The Concentration of risk is managed by Group for each product by its region and its sub-segments. Group did not overly depend on few
management division has established a comprehensive risk management framework across the business and provides appropriate
regions or sub-segments as of March 31, 2020.
reports on risk exposures and analysis in its pursuit of creating awareness across the Group about risk management. The RMC of the
board meets minimum of four times a year and reviews the risk management policy, implementation of risk management framework, 45.5 Operational Risk
monitoring of critical risks, and review of various other initiatives with a structured annual plan. Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. The
c) Third line of defense constitutes internal auditors, internal external auditors and statutory auditors provide assurance to the audit operational risks of the Group are managed through comprehensive internal control systems and procedures and key back up processes.
committee and senior management on the effectiveness of internal governance and risk processes. In order to further strengthen the control framework and effectiveness, the Group has established risk control self-assessment at branches
to identify process lapses by way of exception reporting. This enables the management to evaluate key areas of operational risks and
45.2 Credit Risk
the process to adequately mitigate them on an ongoing basis. The Group also undertakes risk based audits on a regular basis across all
Credit risk arises when a borrower is unable to meet his financial obligations to the lender. This could be either because of wrong business units / functions. While examining the effectiveness of control framework through self-assessment, the risk-based audit would
assessment of the borrower’s payment capabilities or due to uncertainties in his future earning potential. The effective management of assure effective implementation of self-certification and internal financial controls adherence, thereby, reducing enterprise exposure.
credit risk requires the establishment of appropriate credit risk policies and processes. The Group has comprehensive and well-defined
The Group has put in place a robust Disaster Recovery (DR) plan, which is periodically tested. Business Continuity Plan (BCP) is further
credit policies across various businesses, products and segments, which encompass credit approval process for all businesses along with
put in place to ensure seamless continuity of operations including services to customers, when confronted with adverse events such as
guidelines for mitigating the risks associated with them. The appraisal process includes detailed risk assessment of the borrowers, physical
natural disasters, technological failures, human errors, terrorism, etc. Periodic testing is carried out to address gaps in the framework, if
verifications and field visits. The Group has a robust post sanction monitoring process to identify credit portfolio trends and early warning
any. DR and BCP audits are conducted on a periodical basis to provide assurance regarding the effectiveness of the Group’s readiness. The
signals. This enables it to implement necessary changes to the credit policy, whenever the need arises. Also, being in asset financing
Group is continuously engaged in creating risk awareness and culture across the organisation through training on risk management tools
business, most of the Group’s lending is covered by adequate collaterals from the borrowers. The Group has a robust online application
and communication through risk e-newsletters.
underwriting model to assess the credit worthiness of the borrower for underwriting decisions for its vehicle finance, home equity and
home loan business. The Group also has a well-developed model for the vehicle finance portfolio, to help business teams plan volume 45.6 Liquidity Risk
with adequate pricing of risk for different segments of the portfolio Liquidity risk is defined as the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities that
Credit risk arises when a borrower is unable to meet financial obligations to the lender. This could be either because of wrong assessment are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Group might be unable to
of the borrower’s payment capabilities or due to uncertainties in future. The effective management of credit risk requires the establishment meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress
of appropriate credit risk policies and processes. circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Group on acceptable
terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of availing funding in line with
45.3 Market Risk
the tenor and repayment pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Group has developed
Market Risk is the possibility of loss arising from changes in the value of a financial Market Risk is the possibility of loss arising from internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and
changes in the value of a financial instrument as a result of changes in market variables such as interest rates, exchange rates and other the availability of unencumbered receivables which could be used to secure funding by way of assignment if required. The Group also has
asset prices. The Group’s exposure to market risk is a function of asset liability management and interest rate sensitivity assessment. The lines of credit that it can access to meet liquidity needs.
Group is exposed to interest rate risk and liquidity risk, if the same is not managed properly. The Group continuously monitors these risks
Refer Note No 49 for the summary of maturity profile of undiscounted cash flows of the Group’s financial assets and financial liabilities as
and manages them through appropriate risk limits. The Asset Liability Management Committee (ALCO) reviews market-related trends and
at reporting period.
risks and adopts various strategies related to assets and liabilities, in line with the Group’s risk management framework. ALCO activities
are in turn monitored and reviewed by a board sub-committee. In addition, the Group has put in an Asset Liability Management (ALM) 45.7 Foreign Currency Risk
support group which meets frequently to review the liquidity position of the Group. Foreign Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign
45.4 Concentration of Risk/Exposure currency risk for the Group arise majorly on account of foreign currency borrowings. The Group manages this foreign currency risk by
entering in to cross currency swaps and forward contract. When a derivative is entered in to for the purpose of being as hedge, the Group
Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such
negotiates the terms of those derivatives to match with the terms of the hedge exposure. The Group’s policy is to fully hedge its foreign
counterparties are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet
currency borrowings at the time of drawdown and remain so till repayment.
contractual obligations is uniformly affected by changes in economic, political or other conditions. The Group is in retail lending business
on pan India basis targeting primarily customers who either do not get credit or sufficient credit from the traditional banking sector. Vehicle The Group holds derivative financial instruments such as Cross currency interest rate swap to mitigate risk of changes in exchange rate in
Finance (consisting of new and used Commercial Vehicles, Passenger Vehicles, Tractors, Construction Equipment and Trade advance to foreign currency and floating interest rate.
Automobile dealers) is lending against security (other than for trade advance) of Vehicle/ Tractor / Equipment and contributes to 73% of The Counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted prices for
the loan book of the Group as of March 31, 2020 (74% as of March 31, 2019). Hypothecation endorsement is made in favour of the Group similar assets and liabilities in active markets or inputs that are directly or indirectly observable in market place.
in the Registration Certificate in respect of all registerable collateral. Portfolio is reasonably well diversified across South, North, East and
Western parts of the country. Similarly, sub segments within Vehicle Finance like Heavy Commercial Vehicles, Light Commercial Vehicles,
253 254
45.8 Disclosure of Effects of Hedge Accounting ` in lakhs
Cash Flow Hedge 31.03.2020 31.03.2019
As at March 31, 2020 Note : 46 NON-CONTROLLING INTEREST
Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item Balance at the beginning of the year - 34
Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance Share of loss - (147)
Risk on Cash Instruments Instruments Hedging used as a basis for sheet Share of other comprehensive income - -
Adjustment on account of loss of control in subsidiary* - 113
(₹ in lakhs) effectiveness (₹ in lakhs)
Balance at the end of the year - -
Cross Currency Asset Liability Asset Liability September 25, 2020 11,420 (21,038) Borrowings
Interest rate swap 9 0 2,22,953 - to June 03, 2024 *During the previous year ended March 31, 2019, pursuant to investment by another entity in WDSI, the Group's interest in WDSI has
reduced from 63% to 30.87%, consequently resulting in loss of control of the Group in WDSI. In view of this change in status, the retained
Year ended March 31, 2020 interest of the Group in WDSI, Company has de-recognised the non-controlling interest.
Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit Note : 47 INVESTMENT IN AN ASSOCIATE
recognised in Other and loss Reserve to Profit or Loss and Loss because of As at March 31, 2018, the Group had 63% interest in White Data Systems India Private Limited ("WDSI") and this entity was treated as a
Comprehensive Income the Reclassification
subsidiary in the consolidated financial statements. During the Financial year ended March 31, 2019, pursuant to investment by another
(₹ in Lakhs)
entity in WDSI, the Group's interest in WDSI had reduced from 63% to 30.87%, consequently resulting in loss of control of the Group in
Foreign exchange (9,232) - - NA
WDSI (w.e.f October 01, 2018). In view of this change in status, the retained interest of the Group in WDSI aggregating to 30.87% interest
had been fair valued and a resultant fair value gain of ₹ 2,029 lakhs had been recognised in the consolidated statement of profit and loss
As at March 31, 2019 for the year ended March 31, 2019.
Foreign Nominal Carrying Maturity Date Changes in Changes in the value Line item Particulars ` in lakhs
Exchange Value of Hedging Value of Hedging Fair value of of Hedged Item in Balance Fair value of Net assets on the date of Investment by other entity 8,274
Risk on Cash Instruments Instruments Hedging used as a basis for sheet Group's share on the date of loss of control 30.87%
(₹ in lakhs) effectiveness (₹ in lakhs) Fair value of Net assets attributable to Group 2,554
Add: Net liabilities on the date of loss of control 278
Cross Currency Asset Liability Asset Liability November 07, 2019 8,028 (8,415) Borrowings
Less: Minority Interest (103)
Interest rate swap 5 1 1,82,631 35,491 to March 18, 2022
Less: Goodwill recognised earlier on acquisition of WDSI (700)
Fair value gain on loss of control in subsidiary 2,029
Cash flow Hedge Change in the value of Hedge Effectiveness Amount reclassified Line item affected in The Group had recognised the value of investment in associate at fair value on the date of loss of control and the same is carried at cost
Hedging Instrument recognised in profit from Cash Flow Hedge Statement of Profit as at reporting date.
recognised in Other and loss Reserve to Profit or Loss and Loss because of ` in lakhs
Comprehensive Income the Reclassification Particulars As at As at
(₹ in Lakhs) 31.03.2020 31.03.2019
Foreign exchange 1,306 - - NA Value of Investment in Subsidiary on the date of loss of control 2,554 2,554
risk and Interest rate risk Less: Cumulative Share of Loss of from Associate (77) (35)
Closing value of Investment 2,477 2,519
45.9 COLLATERAL AND OTHER CREDIT ENHANCEMENTS
Although collateral can be an important mitigation of credit risk, it is the Group’s practice to lend on the basis of the customer’s ability The Group has a 30.87% interest in White Data Systems India Private Limited, which is in the business of providing freight data solutions
to meet the obligations out of cash flow resources other than placing primary reliance on collateral and other credit risk enhancements. encompassing technology, certification and finance offering in India. The WDSI has dedicated logistics platform “i-loads”, seamlessly
The Group obtains first and exclusive charge on all collateral that it obtains for the loans given. Vehicle Finance and Home Equity loans are connects load providers, logistics agents, brokers and transporters through its disruptive technology. It is accounted for using the equity
secured by collateral at the time of origination. In case of Vehicle loans, Group values the vehicle either through proforma invoice (for new method in the consolidated financial statements. The following table illustrates the summarised financial information of the Group’s
vehicles) or using registered valuer for used vehicles. In case of Home equity loans, the value of the property at the time of origination will investment in White Data Systems India Private Limited:
be arrived by obtaining two valuation reports from Group’s empanelled valuers. ` in lakhs
Particulars 31.03.2020 31.03.2019
Hypothecation endorsement is obtained in favour of the Group in the Registration Certificate of the Vehicle/ Tractor / Equipment funded
under the vehicle finance category. Current assets 6,458 4,333
Non-current assets 1,027 540
Immovable Property is the collateral for Home Equity loans. Security Interest in favour of the Group is created by Mortgage through
deposit of title deed which is registered wherever required by law. Current liabilities (3,709) (1,067)
Non-current liabilities (64) (28)
In respect of Other loans, Home loans follow the same process as Home Equity and pledge is created in favour for the Group for loan
Equity 3,712 3,778
against securities. The Group does not obtain any other form of credit enhancement other than the above. 99% of the Group’s term
Proportion of the Group’s ownership 30.87% 30.87%
loan are secured by way of tangible Collateral. Any surplus remaining after settlement of outstanding debt by way of sale of collateral is
returned to the customer / borrower. Group's share in the Equity of the associate 1,146 1,166
255 256
Note : 47 INVESTMENT IN AN ASSOCIATE (Contd.) Note : 48 (Contd.)
` in lakhs The Management assessed that cash and cash equivalents, bank balance other than Cash and cash equivalents, receivable, other financial
Particulars Year ended assets, payables and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments.
31.03.2020
Revenue from contracts with customers 4,733 The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
Other Income 19 transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
Depreciation & amortization 98 estimate the fair values of financial assets or liabilities.
Finance cost 29
Employee benefit 225 i) Derivatives are fair valued using market observable rates and publishing prices.
Other expense 4,553 ii) The fair value of loans have estimated by discounting expected future cash flows using discount rate equal to the rate near to the
Profit before tax (153) reporting date of the comparable product.
Income tax expense 18
Profit for the year (continuing operations) (135) iii) The fair value of debt securities, borrowings other than debt securities and subordinated liabilities have estimated by discounting
Other comprehensive loss that may be reclassified to profit or loss in subsequent periods, net of tax - expected future cash flows discounting rate near to report date based on comparable rate / market observable data.
Other comprehensive income that will not be reclassified to profit or loss in the subsequent periods, net of tax (18) iv) The fair values of quoted equity investments are derived from quoted market prices in active markets.
Total comprehensive income for the year (continuing operations) (153)
Group’s share of loss considered in the consolidated statement of Profit and loss for the year ended March 31, 2020 (42)
Note : 48.2 FAIR VALUE HIERARCHY
The associate has no contingent liabilities or capital commitments as at March 31, 2020 and March 31, 2019.
The following table provides the fair value measurement hierarchy of the Group's assets and liabilities
Note : 48
Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2020 ` in lakhs
Note : 48.1 FAIR VALUE OF FINANCIAL INSTRUMENTS
Particulars Fair value measurement using
Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial instruments that are not carried at Carrying Quoted price in Significant Significant
fair value in the financial statements. This table does not include the fair values of non–financial assets and non-financial liabilities. Value active markets observable unobservable
(Level 1) inputs inputs
` in lakhs
(Level 2) (Level 3)
Particulars 31.03.2020 31.03.2019
Carrying Fair Carrying Fair Assets measured at Fair value
Value Value Value Value FVTOCI Equity Instruments 1,248 818 430 -
Financial Assets FVTPL Equity Instruments 40 40 - -
Cash and Cash Equivalents 3,49,514 3,49,513 3,16,435 3,16,435 Derivative financial instruments 11,420 - 11,420 -
Bank balances Other than Cash and Cash Equivalents 3,50,560 3,50,559 54,411 54,411 Assets for which fair values are disclosed
Loans 55,39,573 - 54,69,635 -
Receivables
i) Trade Receivables 1,503 1,503 4,128 4,128
ii) Other Receivables 5,052 5,052 3,908 3,908
* Fair value of investment property is calculated based on valuation given by external independent valuer.
Loans 55,39,573 54,69,635 52,61,077 52,80,975
Other Financial Assets 43,913 43,912 13,896 13,896 Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2020
` in lakhs
Total Financial Assets 62,90,115 62,20,174 56,53,855 56,73,753
Carrying Quoted price in Significant Significant
Payables Value active markets observable unobservable
i) Trade Payables 22,047 22,047 23,145 23,145
(Level 2) (Level 3)
ii) Other Payables 9,949 9,949 12,894 12,894 Liabilities measured at Fair value
Debt Securities 7,32,683 7,32,658 14,18,431 14,13,496 Derivative financial instruments - - - -
Borrowings (Other than Debt Securities) 43,27,308 43,23,357 32,12,375 32,10,512 Liabilities for which fair values are disclosed
Subordinated Liabilities 4,40,552 4,40,595 4,25,868 4,28,174 Debt Securities 7,32,683 - 7,32,658 -
Borrowings (Other than Debt Securities) 43,27,308 - 43,23,357 -
Other Financial Liabilities 39,485 39,485 21,676 21,676
Subordinated Liabilities 4,40,552 - 4,40,595 -
Total Financial Liabilities 55,72,024 55,68,091 51,14,389 51,09,897
257 258
Note : 48 (Contd.) Note : 49 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES
Quantitative disclosure fair value measurement hierarchy of assets as at March 31, 2019 As at March 31, 2020 ` in lakhs
` in lakhs Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
1 month months months months years years 5 years
Carrying Quoted price in Significant Significant Financial Assets
Value active markets observable unobservable Cash and Cash Equivalents 3,05,807 41,302 - - - - - 3,47,109
Bank Balances Other than Cash 2,068 13,100 3,02,998 6,613 22,384 4,817 16,264 3,68,244
(Level 2) (Level 3)
Assets measured at Fair value and Cash Equivalents
FVTOCI Equity Instruments 1,631 1,113 518 - Derivative Financial Instruments - - 1,711 - 7,816 1,893 - 11,420
Derivative financial instruments 8,869 - 8,869 - Receivables
Assets for which fair values are disclosed i) Trade Receivables 1,503 - - - - - - 1,503
Loans 52,61,077 - 52,80,975 -
Loans 1,91,007 1,15,874 2,96,355 11,97,025 34,84,077 13,32,617 15,83,534 82,00,489
There have been no transfers between different levels during the period. Investments
* Fair value of investment property is calculated based on valuation given by external independent valuer.
i) Associate - - - - - - 2,477 2,477
Quantitative disclosure fair value measurement hierarchy of liabilities as at March 31, 2019 ii) Others - - - - 302 - 490 792
` in lakhs
Other Financial Assets 3,008 585 4,244 7,539 18,952 9,839 11,176 55,343
Carrying Quoted price in Significant Significant Total Undiscounted 5,08,445 1,70,861 6,05,308 12,11,177 35,33,531 13,49,166 16,13,941 89,92,429
Value active markets observable unobservable Financial Assets
(Level 2) (Level 3) Financial Liabilities
Liabilities measured at Fair value Derivative Financial Instruments - - - - - - - -
Derivative financial instruments 841 - 841 - Payables
Liabilities for which fair values are disclosed (I) Trade Payables
Debt Securities 14,18,431 - 14,13,496 - i) Total outstanding dues of 70 - - - - - - 70
Borrowings(Other than Debt Securities) 32,12,375 - 32,10,512 -
micro and small enterprises
Subordinated Liabilities 4,25,868 - 4,28,174 -
Note 48.3 Summary of Financial assets and liabilities which are recognised at amortised cost (II) Other Payables
` in lakhs i) Total outstanding dues of - - - - - - - -
31.03.2020 31.03.2019 micro and small enterprises
Financial Assets ii) Total outstanding dues of 9,949 - - - - - - 9,949
Cash and Cash Equivalents 3,49,514 3,16,435 creditors other than micro
Bank balances other than Cash and Cash Equivalents 3,50,560 54,411
Loans 55,38,423 52,59,927
Debt Securities 30,772 1,90,142 9,348 2,05,289 3,07,560 54,811 2,926 8,00,848
Other Financial Assets 43,913 13,896
Financial Liabilities Borrowings (Other than 94,591 1,37,690 3,79,465 8,55,975 26,43,106 7,98,703 84,373 49,93,903
Debt Securities 7,32,683 14,18,431 Debt Securities)
Borrowings (Other than Debt Securities) 43,27,308 32,12,375 Subordinated Liabilities 11,370 9,182 14,636 44,321 1,95,966 1,13,415 2,70,774 6,59,664
Subordinated Liabilities 4,40,552 4,25,868 Other Financial Liabilities 24,825 890 1,335 2,665 9,542 2,071 - 41,328
Other Financial liabilities 39,485 21,676
48.4 Refer Note 15 for sensitivity analysis for investment property, whose fair value is disclosed under the level 3 category.
Total net Undiscounted 3,14,891 (1,67,043) 2,00,524 1,02,927 3,77,357 3,80,166 12,55,868 24,64,690
Financial Assets/(Liabilities)
259 260
Note : 49 ANALYSIS OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY REMAINING CONTRACTUAL MATURITIES (Contd.) Note : 50 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES
As at March 31, 2019 ` in lakhs
Particulars Upto 1 to 3 3 to 6 6 to 12 1 to 3 3 to 5 More than Total
1 month months months months years years 5 years The Group has taken office premises on lease for its operations.
Financial Assets The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Group is restricted from
Cash and Cash Equivalents 89,996 2,29,834 - - - - - 3,19,830 assigning and subleasing the leased assets and some contracts require the Group to maintain certain financial ratios. There are
several lease contracts that include extension and termination options and variable lease payments, which are further discussed
Bank Balances Other than 370 6,810 3,997 12,521 22,226 2,172 19,394 67,490
below.
Cash and Cash Equivalents
The Group also has certain leases of machinery with lease terms of 12 months or less. The Group applies the ‘short-term lease’
Derivative Financial Instruments - - - 7,229 1,640 - - 8,869
recognition exemptions for these leases.
Receivables
Set out below are the carrying amounts of lease liabilities included under financial liabilities and right to use asset included in
i) Trade Receivables 4,128 - - - - - - 4,128
Property, Plant and Equipment and the movements during the period:
Loans 3,47,736 4,01,295 5,55,041 10,37,025 28,11,745 8,93,363 12,75,688 73,21,893
Investments Other Disclosures

i)
Associate - - - - - - 2,519 2,519

ii)
Others - - - - - - 1,631 1,631 (i) Movement in the carrying value of the Right to Use Asset for the year ended March 31, 2020 ` in lakhs
Other Financial Assets - 1,461 1,006 1,775 5,487 1,051 3,117 13,897 Particulars - Buildings Amount
Total Undiscounted 4,46,138 6,39,400 5,60,044 10,58,550 28,41,098 8,96,586 13,02,349 77,44,165 Opening Balance 11,591
Depreciation charge for the Period (4,259)
financial assets
Additions during the Period 4,292
Financial Liabilities Adjustment/Deletion (594)
Derivative Financial Instruments - - - - 841 - - 841 Closing Balance 11,030
Payables
(I)
Trade Payables -
(ii) Classification of current and non current liabilities of the lease liabilities as at March 31, 2020 ` in lakhs
Particulars Amount
micro and small enterprises
Current liablities 5,158
ii) Total outstanding dues of 23,145 - - - - - - 23,145 Non Current Liabilities 7,267
creditors other than micro Total Lease liabilities 12,425
(II)
Other Payables
(iii) Movement in the carrying value of the Lease Liability for the year ended March 31, 2020 ` in lakhs
Particulars Amount
micro and small enterprises Opening Balance 12,421
ii) Total outstanding dues of 12,894 - - - - - - 12,894 Interest Expense 1,183
creditors other than micro Lease Payments [Total Cash Outflow] (4,877)
Additions during the year 4,292
Adjustment/Deletion (594)
Debt Securities 1,35,795 1,85,058 3,04,085 3,85,148 4,18,809 95,999 19,429 15,44,323 Closing Balance 12,425
Borrowings (Other 1,75,149 1,04,374 2,30,379 5,70,299 20,56,987 3,77,195 1,32,833 36,47,216
than Debt Securities)
Subordinated Liabilities 1,366 31,953 8,427 31,516 1,98,024 1,42,836 2,31,807 6,45,929 (iv) Contractual Maturities of Lease liability outstanding as at March 31, 2020 ` in lakhs
Other Financial Liabilities 21,362 - - - 252 21 - 21,635 Particulars Amount
Less than one year 5,410
One to five Years 8,859
Financial Liabilities Total 14,269
Total net Undiscounted 76,427 3,18,015 17,153 71,587 1,66,185 2,80,535 9,18,280 18,48,182
Financial Assets/(Liabilities)
261 262
Note : 50 DISCLOSURES IN CONNECTION WITH IND AS 116 - LEASES (Contd.) 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 AS AT AND FOR THE YEAR ENDED
(v) The following are the amount recognised in the Profit or Loss statement
` in lakhs MARCH 31, 2020 AND MARCH 31, 2019 (Contd.)
Particulars Amount As at March 31, 2019
Depreciation expense of right-of-use assets 4,259 ` in lakhs
Interest expense on lease liabilities 1,183 Net Assets (i.e total assets Share in Profit and Other Comprehensive Total Comprehensive
less total liabilities) Loss Income Income
Expense relating to short-term leases (included in other expenses) 8
Name of the As % of As % of As % of As % of
Expense relating to leases of low-value assets (included in other expenses) - entities Consolidated Consolidated Consolidated Consolidated
Variable lease payments (included in other expenses) - Net Assets Profit and Loss Other Total
Total amount recognised in profit or loss 5,450 Comprehensive Comprehensive
Amount Amount Income Amount Income Amount
Lease expenses relating to short term leases aggregated to Rs.7.93 Lakhs during the year ended March 31, 2020. I. Parent
Cholamandalam Investment 98% 6,09,139 101% 1,20,412 (194%) 409 101% 1,20,820
Lease liabilities are recognised at weighted average incremental borrowing rate ranging from 8% to 12%.
and Finance Company Limited
The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the II. Subsidiaries
obligations related to the lease liabilities as and when they fall due. Cholamandalam Securities Limited 1% 3,904 0% 255 53% (112) 0% 143
Cholamandalam Home 1% 5,309 (1%) (762) 241% (508) (1%) (1,270)
The Group has several lease contracts that includes extension and termination contracts. These options are negotiated by the Finance Limited
Management to provide flexibility in managing the leased-asset portfolio and align with Group's business needs. Management Minority Interests in all 0% - 0% (147) 0% - 0% (147)
exercises significant judgement in determining whether these extension and termination are reasonably certain to be exercised. Also subsidiaries
refer note 6B III. Associates (Investment
as per equity method)
White Data Systems 0% 2,519 0% (98) 0% - 0% (98)
Note : 51 ADDITIONAL INFORMATION AS REQUIRED BY PARAGRAPH 2 OF THE GENERAL INSTRUCTIONS FOR PREPARATION India Private Limited
OF CONSOLIDATED FINANCIAL STATEMENTS TO SCHEDULE III TO THE COMPANIES ACT, 2013 AS AT AND FOR THE YEAR ENDED 100% 6,20,871 100% 1,19,659 100% (211) 100% 1,19,448
MARCH 31, 2020 AND MARCH 31, 2019
Note : 52 EVENTS AFTER REPORTING DATE
As at March 31, 2020 There have been no events after the reporting date that require disclosure in the financial statements.
` in lakhs
Net Assets (i.e total assets Share in Profit and Other Comprehensive Total Comprehensive Note : 53 PRIOR PERIOD INFORMATION
less total liabilities) Loss Income Income
Prior period figures have been regrouped, wherever necessary, to conform to the current period presentation.
Name of the As % of As % of As % of As % of
entities Consolidated Consolidated Consolidated Consolidated
Net Assets Profit and Loss Other Total
Comprehensive Comprehensive As per our report of even date
Amount Amount Income Amount Income Amount For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors
I. Parent
Cholamandalam Investment 99% 8,09,197 100% 1,05,107 91% (6,344) 100% 98,763
and Finance Company Limited per Subramanian Suresh Arun Alagappan M.M. Murugappan
II. Subsidiaries Partner Managing Director Chairman
Cholamandalam Securities Limited 0% 3,471 0% 261 3% (210) 0% 51 Membership No: 083673
Cholamandalam Home 1% 4,841 0% 46 6% (420) 0% (374) Date : June 3, 2020 P. Sujatha D. Arul Selvan
Finance Limited Place : Chennai Company Secretary Chief Financial Officer
Minority Interests in all 0% - 0% - 0% - 0% -
subsidiaries
III. Associates (Investment
as per equity method)
White Data Systems 0% 2,477 0% (42) 0% - 0% (42)
India Private Limited
100% 8,19,986 100% 1,05,372 100% (6,974) 100% 98,398
263 264
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 ` in lakhs
Name of the subsidiary Cholamandalam Home Finance Limited Cholamandalam Securities Limited
Reporting period for the subsidiary concerned, if March 31, 2020 March 31, 2020
different from the holding company’s reporting
period
Reporting currency and Exchange rate as on the Not applicable Not applicable
last date of the relevant Financial year in the case of GLOSSARY
foreign subsidiaries.
Share capital 4,240 2,250 A. TERMS
Reserves & surplus 579 521 Assets Under Management (AUM) Business AUM and Investments
Total assets 5,465 5,825 Business AUM On - Balance sheet Business assets and Off - Balance sheet Business assets
Total Liabilities 646 3,054 Business AUM(Net) Business AUM less Expected Credit Losses(ECL) provisions
Investments 597 193 Total Assets Under Management Total Balance sheet assets and Off Balance sheet Business assets
Turnover 3,861 2,359 Net credit Losses (NCL) Loan losses and ECL provision
Profit/(Loss) before taxation (77) 327
Provision for taxation 7 101 B. PERFORMANCE RATIOS
Profit/(Loss) after taxation (70) 226 Operating Expenses to Assets Total Expenses (Less: Finance Costs & Impairment of Financial Instruments)/Average
Proposed Dividend - - of Closing Assets
% of shareholding 100.00% 100.00%
Loan Losses % Impairment of Financial instruments/Average of Closing Assets
PBT-ROTA Profit Before Tax/Average of Closing Assets
Names of subsidiaries which are yet to commence Not applicable Not applicable
operations Prot Before Tax to Income Profit Before Tax/Total Income
Names of subsidiaries which have been liquidated Not applicable Not applicable Return on Total Assets - PAT Profit After Tax/Average of Closing Assets
or sold during the year. Return on Equity - PAT Profit After Tax/Average of Shareholder's funds
Part “B”: Associates and Joint Ventures Closing assets Represents Business AUM for Respective Business and represents on-balance sheet business assets and Investment at
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures Company’s level for computing ratios
Name of Associates White Data Systems Private Limited

Latest audited Balance Sheet Date March 31, 2020
C. INVESTOR RATIOS
Earnings per Equity share Profit After Tax/Weighted Average number of shares
Shares of Associate/Joint Ventures held by the company on the year end
Book value per Equity share Networth/Total Number of Shares
No. 12,75,917
Dividend per Equity share Interim Dividend paid & Final Dividend proposed per Equity share
Amount of Investment in Associates/Joint Venture (₹ in lakhs) 800
CAR (Capital Adequacy Ratio) Tier I & Tier II Capital/Risk Weighted Assets
Extend of Holding % 30.87%
Description of how there is significant influence By way of shareholding
Reason why the associate/joint venture is not consolidated Not applicable
Networth attributable to Shareholding as per latest audited Balance Sheet 1,146
Profit / (Loss) for the year - ₹ in lakhs (135)
Considered in Consolidation - ₹ in Lakhs (42)
Not Considered in Consolidation - ₹ in Lakhs (93)
Names of associates or joint ventures which are yet to commence operations Not applicable
Names of associates or joint ventures which have been liquidated or sold during the year. Not applicable
M.M. Murugappan
Chairman
Date : June 3, 2020 P. Sujatha D. Arul Selvan Arun Alagappan

Place : Chennai Company Secretary Chief Financial Officer Managing Director
265 266
Corporate Overview Management Reports Financial Statements
Notes:
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED

Dare House, No. 2, N.S.C Bose Road, Parrys, Chennai - 600 001.
Phone : 044 4090 7172; Fax : 044 2534 6464
E - mail : [email protected] | Website : www.cholamandalam.com
267
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July

ORDINARY BUSINESS: As may be determined by the NRC.

Cholamandalam Investment and Finance Company Limited

CONTENTS CORPORATE INFORMATION

04 Corporate Information Mr. M.M. Murugappan

18 Business Highlights Ms. P. Sujatha

34 Financial Highlights AUDITORS

ABOUT MURUGAPPA GROUP

For more details, visit www.murugappa.com

Enable Customers to Enter a Better Life.

QUALITY: We take ownership of our work. We unfailingly meet high standards

RESPECT: We respect the dignity of every individual. We are open and

RESPONSIBILITY: We are responsible corporate citizens. We believe we can

in this segment. The two-wheelerindustry had a

 Graduate in Commerce, a Fellow member of the Institute of Chartered Accountants of India,

 Graduate in Commerce, a fellow member of the Institute of Chartered Accountants of India.

CHOLA - FINANCIAL SUMMARY BUSINESS REVIEW - VEHICLE FINANCE

Heavy Commercial Vehicle Mini Light Commercial Vehicle

 Stable player in the market for more than four decades

VEHICLE FINANCE - FINANCIAL SUMMARY BUSINESS REVIEW - HOME EQUITY

CAGR: 20% Income YOY: 21% CAGR: 25% PBT YOY: 6%

4,190 988 *397

LOAN AGAINST PROPERTY

HOME EQUITY - FINANCIAL SUMMARY BUSINESS REVIEW - HOME LOANS

The Home Loans business is committed to the

Note: a. * One time provision for COVID 19 + Macro provision FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20

OUR SUBSIDIARIES Finance & Treasury – Strength through partnering

 Largest equity raise through QIP and Preferential Allotment

- Computation of pay-out to dealers, brokers etc.  Retention of high performers

- Customer ﬁles tracking systems  Creating talent pipelines

- Decentralization of NOCs to branches  Aligning career aspirations

- Developments in Loan Management System (LMS) Building Capabilities

CHOLA CONNECT – A digitization Journey

Live, Learn & Lead!

Alt Worklife | Alt Messenger | Alt Learning – A complete HR

Employee Health & Safety

Employee Health & Safety continues to be prime focus at

Key Focus Areas Area of Implementation

 Balangir, Odisha (Water & Sanitation Facilities In Villages & Schools)

Focus On Overall Health And Wellbeing Of The Trucking Community

FINANCIAL YEAR ENDED 2020 2019 2018 2017 2016

Others 1,63,121 1,12,918 94,855 1,70,969 1,48,771

Total Assets 63,99,304 57,42,630 44,08,973 30,59,480 27,88,831

Liabilities and Equity

Borrowings 55,00,543 50,56,674 38,33,033 24,10,910 22,57,622

Others 81,577 68,382 66,126 2,20,078 1,65,468

Total Liabilities 63,99,304 57,42,630 44,08,973 30,59,480 27,88,831

FINANCIAL YEAR ENDED 2015 2014 2013 2012

Total Income 3,69,119 3,26,284 2,55,568 1,78,821 1,20,183

the company has created a one-time contingency provision of OUTLOOK

Directors’ Responsibility Annexure-I

(i) Category-wise Shareholding:

/State Government(s) (2) NON-INSTITUTIONS

Capital Investors Note:

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD

CSR Report special playground equipment, special furniture and other

(1) (2) (3) (4) (5) (6) (7) (8)

Place : Chennai Arun Alagappan M.M. Murugappan

DETAILS OF SPECIAL RESOLUTIONS PASSED COMPLIANCE REPORT CEO/CFO CERTIFICATION

Place : Chennai Arun Alagappan For R. Sridharan & Associates