(i) There are no repatriation restrictions with respect to cash and cash equivalents as at the end of the reporting period and prior years.
(ii) Short-term deposits are made for varying periods of between seven days and three months, depending on the immediate cash requirements of the company, and to earn interest at the respective short-term deposit rates.
(iii) The company has not taken bank overdraft, therefore the cash and cash equivalents for cash flow statement is same as for cash and cash equivalents.
(i) There are no repatriation restrictions with respect to bank balances other than cash and cash equivalents as at the end of the reporting period and prior years.
(ii) The Company earns a fixed rate of interest on these term deposits.
(iii) Term deposits amounting to INR 5,957.35 millions (March 31, 2023: INR 3,908.44 millions ) are held as pledged against borrowings and other commitments.
(i) Rights, preferences and restrictions attached to equity shares:
The company has equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors in any financial year is subject to the approval of the shareholders in the ensuing annual general meeting, except interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of reserves
Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
Reserve fund u/s 45-IC of RBI Act 1934
The company creates a reserve fund in accordance with the provisions of section 45-IC of the Reserve Bank of India Act, 1934 and transfers therein an amount equal to/more than twenty per cent of its net profit of the year, before declaration of dividend. Accordingly, during the period, the Company has transferred an amount of INR 899.17 million (March 31,2023: INR 327.78 million).
Employee stock options outstanding
The account is used to recognise the grant date value of options issued to employees under Employee stock option plan and adjusted as and when such options are exercised or otherwise expire.
Loan assets through other comprehensive income
The Company recognises changes in the fair value of loan assets held with business objective of collect and sell in other comprehensive income. These changes are accumulated within the FVOCI debt investments reserve within equity. The company transfers amounts from this reserve to the statement of profit and loss when the loan assets are sold. Any impairment loss on such loans are reclassified immediately to the statement of profit and loss.
(a) Gratuity is payable to the employees on death or resignation or on retirement at the attainment of superannuation age.
(b) These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.
(c) The discount rate is based on the prevailing market yield of Government of India bonds as at the balance sheet date for the estimated terms of obligations.
(d) The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
The above sensitivity analysis is based on a change an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous year.
B. Compensated absence
(i) The Company provides encashment of compensated absence based on the approved Company policy. Employees whose service is permanent will be eligible for privilege of compensated absence on calendar year basis, and it is mandatory that a minimum of 5 leaves need to be taken in an year.
(a) Encashment of compensated absence is payable to the employees on death or resignation or on retirement at the attainment of superannuation age, and it is not applicable on termination and unserved notice period of an employee.
(b) These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.
(c) The discount rate is based on the prevailing market yield of Government of India bonds as at the balance sheet date for the estimated terms of obligations.
(d) The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
The above sensitivity analysis is based on a change an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet.
39 Contingent liabilities and commitments
Credit enhancements provided by the Company towards securitisation transactions aggregate to INR 5,498.00 million (March 31, 2023: INR 3,381.96 million).
B Fair values hierarchy
The fair value of financial instruments as referred to in note 'A' above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
The categories used are as follows:
Level 1: Quoted prices (unadjusted) for identical instruments in an active market;
Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data (unobservable inputs).
B.1 Valuation framework
Loan assets carried at fair value through other comprehensive income are categorized in Level 3 of the fair value hierarchy.
The Company's fair value methodology and the governance over its models includes a number of controls and other procedures to ensure the quality and adequacy of the fair valuation. In order to arrive at the fair value of the above instruments, the Company obtains independent valuations. The valuation techniques and specific considerations for level 3 inputs are explained in detail below. The objective of the valuation techniques is to arrive at a fair value that reflects the price that would be received to sell the asset or paid to transfer the liability in the market at any given measurement date.
The fair valuation of the financial instruments and its ongoing measurement for financial reporting purposes is ultimately the responsibility of the finance team which reports to the Chief Financial Officer. The team ensures that final reported fair value figures are in compliance with Ind AS and will propose adjustments wherever required. When relying on third-party sources, the team is also responsible for understanding the valuation methodologies and sources of inputs and verifying their suitability for Ind AS reporting requirements.
B.3 Valuation techniques
B.3A Loan assets carried at fair value through other comprehensive income
Loan receivables valuation is carried out for two portfolios segregated on the basis of repayment frequency - monthly and weekly. The valuation of each portfolio is done by discounting the aggregate future cash flows with risk-adjusted discounting rate for the remaining portfolio tenor.
Following inputs have been used to calculate the fair value of loans receivables:
(i) Future cash flows: Include principal receivable, interest receivable and tenor information based on the repayment schedule agreed with the borrowers.
(ii) Risk-adjusted discount rate: This rate has been arrived using the cost of funds approach.
B.4 Fair value of instruments measured at amortised cost
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.
(i) The management assessed that fair values of the following financial instruments to be approximate their respective carrying amounts, largely due to the short-term maturities of these instruments:
Cash and cash equivalents
Bank balances other than cash and cash equivalents Other receivables Other payables
Other financial assets and liabilities
(ii) Majority of the Company's borrowings are at a variable rate interest and hence their carrying values represent best estimate of their fair value as these are subject to changes in underlying interest rate indices.
(iii) The management assessed that fair values arrived by using the prevailing interest rates at the end of the reporting periods to be approximate their respective carrying amounts in case of the following financial instruments-
Loans
Lease liabilities Debt securities
Q i i I'-v/'-v rri i I i o T'x i I i i
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, other bank balances, other receivables, loan assets, investments and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
A.1 Credit risk management
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets:
(i) Low credit risk
(ii) Moderate credit risk
(iii) High credit risk
Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a borrower become non contactable or in financial distress or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made subsequently are recognized in the statement of profit and loss.
A.3 Management of credit risk for financial assets other than loans
Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is considered to be very low as the Company only deals with high rated banks. The risk is also managed by diversifying bank deposits and accounts in different banks across the country.
Other receivables
The Company faces very less credit risk under this category as most of the transactions are entered with highly rated organisations and credit risk relating to these are managed by monitoring recoverability of such amounts continuously.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes advances to employees and security deposits. Credit risk related to these financial assets is managed by monitoring the recoverability of such amounts continuously.
A.5 Management of credit risk for loans
Credit risk on loans is the single largest risk of the Company's business, and therefore the Company has developed several processes and controls to manage it. The Company is engaged in the business of providing unsecured micro finance facilities to women having limited source of income, savings and credit histories repayable in weekly or monthly instalments.
The Company duly complies with the RBI guidelines ('Non-Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs - Directions) with regards to disbursement of loans namely:
- Microfinance loans are given to an individual having annual household income up to INR 3,00,000
- Maximum FOIR (Fixed Obligation to Income Ratio) should be 50%
The credit risk on loans can be further bifurcated into the following elements:
(i) Credit default risk
(ii) Concentration risk
(i) Management of credit default risk:
Credit default risk is the risk of loss arising from a debtor being unlikely to pay the loan obligations in full or the debtor is more than 90 days past due on any material credit obligation. The Company majorly manages this risk by following ""joint liability mechanism"" wherein the loans are disbursed to borrowers who form a part of an informal joint liability group (“JLG”), generally comprising of eight to forty five members. Each member of the JLG provide a joint and several guarantees for all the loans obtained by each member of the group.
In addition to this, there is set criteria followed by the Company to process the loan applications. Loans are generally disbursed to the identified target segments which include economically active women having regular cash flow engaged in the business such as small shops, vegetable vendors, animal husbandry business, tailoring business and other self-managed business. Out of the people identified out of target segments, loans are only disbursed to those people who meet the set criterion - both financial and non-financial as defined in the credit policy of the Company. Some of the criteria include - annual income, repayment capacity, multiple borrowings, age, group composition, health conditions, and economic activity etc. Some of the segments identified as non-target segments are not eligible for a loan. Such segments include - wine shop owners, political leaders, police & lawyers, individuals engaged in the business of running finance & chit funds and their immediate family member or people with criminal records etc.
(ii) Management of concentration risk:
Concentration risk is the risk associated with any single exposure or group of exposures with the potential to produce large enough losses to threaten Company’s core operations. It may arise in the form of single name concentration or industry concentration. In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentration risks are controlled and managed accordingly.
A.5.1 Credit risk measurement - Expected credit loss measurement
Ind AS 109 outlines a “three stage” model for impairment based on changes in credit quality since initial recognition as summarised below:
- A financial instrument that is not credit impaired on initial recognition and whose credit risk has not increased significantly since initial recognition is classified as “Stage 1”.
- If a significant increase in credit risk since initial recognition is identified, the financial instrument is moved to “Stage 2” but is not yet deemed to be credit impaired.
- If a financial instrument is credit impaired, it is moved to “Stage 3”.
ECL for depending on the stage of financial instrument:
- Financial instrument in Stage 1 have their ECL measured at an amount equal to expected credit loss that results from default events possible within the next 12 months.
- Instruments in Stage 2 or Stage 3 criteria have their ECL measured on lifetime basis.
A.5.2 Criteria for significant increase in credit risk
The Company considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following quantitative or qualitative criteria are met.
(i) Quantitative criteria
The remaining lifetime probability of default at the reporting date has increased, compared to the residual lifetime probability of default expected at the reporting date when the exposure was first recognized. The Company considers loan assets as Stage 2 when the default in repayment is within the range of 30 to 90 days.
(ii) Qualitative criteria
If other qualitative aspects indicate that there could be a delay/default in the repayment of the loans, the Company assumes that there is significant increase in risk and loan is moved to stage 2.
The Company considers the date of initial recognition as the base date from which significant increase in credit risk is determined.
A.5.3 Criteria for default and credit-impaired assets
The Company defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it meets the following criteria:
(i) Quantitative criteria
The Company considers loan assets as Stage 3 when the default in repayment has moved beyond 90 days.
(ii) Qualitative criteria
The Company considers factors that indicate unlikeliness of the borrower to repay the loan which include instances like the significant financial difficulty of the borrower, borrower deceased or breach of any financial covenants by the borrower etc
A.5.4 Measuring ECL - explanation of inputs, assumptions and estimation techniques
Expected credit losses are the discounted product of the probability of default (PD), exposure at default (EAD) and loss given default (LGD), defined as follows:
- PD represents the likelihood of the borrower defaulting on its obligation either over next 12 months or over the remaining lifetime of the instrument.
- EAD is based on the amounts that the Company expects to be owed at the time of default over the next 12 months or remaining lifetime of the instrument.
- LGD represents the Company’s expectation of loss given that a default occurs. LGD is expressed in percentage and remains unaffected from the fact that whether the financial instrument is a Stage 1 asset, or Stage 2 or even Stage 3. However, it varies by type of borrower, availability of security or other credit support.
Probability of default (PD) computation model
The Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio.
Loss given default (LGD) computation model
The loss rate is the likely loss intensity in case a borrower defaults. It provides an estimation of the exposure that cannot be recovered in the event of a default and thereby captures the severity of the loss. The loss rate is computed by factoring the main drivers for losses (e.g. joint group liability mechanism, historical recoveries trends etc.) and arriving at the replacement cost.
The assessment of significant increase in risk and the calculation of ECL both incorporate forward-looking information.
The Company has evaluated that the analysis of forward-looking information reveal that the scenario applicable to the
Company is "Base Case Scenario" which assumes that the that Macroeconomic conditions are normal and is similar to
previous periods. In this case normal credit rating and corresponding PD & LGD is considered for ECL computation.
A.7 Loss allowance
The loss allowance recognized in the period is impacted by a variety of factors, as described below:
- Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and Lifetime ECL.
- Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments de-recognized in the period
- Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of inputs to models
- Financial assets derecognised during the period and write-offs of allowances related to assets that were written off during the period
A. 9 Write off policy
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include:
- Ceasing enforcement activity
- Where the Company's recovery method is foreclosing and there is no reasonable expectation of recovery in full.
- Specific identification by Management
The Company may write off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of such assets written off during the year ended March 31, 2024 was INR 1,319.20 million (March 31, 2023: INR 1,402.81 million). The Company still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.
B Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
B. 1 Maturities of financial liabilities
The tables below analyse the Company financial liabilities into relevant maturity groupings based on their contractual maturities.
C Market risk - Interest rate risk C.1 Liabilities
The Company’s policy is to minimize interest rate cash flow risk exposures on long-term financing. At March 31,2023, the Company is exposed to changes in market interest rates through borrowings at variable interest rates.
C.2 Assets
The Company’s fixed deposits are carried at amortised cost and are fixed rate deposits. The Company's loan assets are at fixed interest rate. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
42 Capital management
The Company’s capital management objectives are
- to ensure the Company’s ability to continue as a going concern
- to provide an adequate return to shareholders
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure the Company may issue new shares, or sell assets to reduce debt.
43 Share based payments
The Company has implemented Employee Stock Option Plan under Muthoot Microfin Employee Stock Option Plan 2016 ("ESOP 2016") and Muthoot Microfin Limited Employee Stock Option Plan 2022 ("ESOP 2022"). The objective is to reward employees for their association with the Company, their performance as well as to attract, retain and motivate employees to contribute to the growth and profitability of the Company.
44 Operating segments
The company is primarily engaged in business of micro finance and the business activity falls within one operating segment, as this is how the chief operating decision maker of the Company looks at the operations. All activities of the Company revolve around the main business. Hence the disclosure requirement of Indian Accounting Standard 108 of “Segment Reporting” is not considered applicable.
45 Transfer of financial assets
Transferred financial assets that are derecognised in their entirety
During the year ended March 31, 2024, the Company has sold some loans and advances measured at fair value through other comprehensive income as per assignment deals, as a source of finance. As per the terms of these deals, since substantial risks and rewards related to these assets were transferred to the buyer, the assets have been derecognised from the Company’s balance sheet.
The Company has assessed the business model under Ind AS 109 "Financial Instruments" and consequently the financial assets are measured at fair value through other comprehensive income.
The gross carrying value of the loan assets derecognised during the year ended March 31,2024 amounts to INR 27,133.93 millions (March 31, 2023: INR 18,322.48 millions) and the gain from derecognition during the year ended March 31, 2024 amounts to INR 2,231.66 millions (March 31,2023: INR 1,363.16 millions)
Transferred financial assets that are not derecognised in their entirety
In the course of its micro finance or lending activity, the company makes transfers of financial assets, where legal rights to the cash flows from the asset are passed to the counterparty and where the company retains the rights to the cash flows but assumes a responsibility to transfer them to the counterparty.
Other receivables are non-interest bearing and are generally on terms of 30 to 90 days. During the year ended March 31, 2024 an amount of Nil (March 31, 2023: Nil) was recognised as provision for expected credit losses on other receivable.
Revenue recognition for contract with customers - Commission income:
The Contract with customers through which the Company earns a commission income includes the following promises:
(i) Sourcing of loans
(ii) Servicing of loans
Both these promises are separable from each other and do not involve significant integration. Therefore, these promises constitute
separate performance obligations.
No allocation of the consideration between both the promises was required as the management believes that the contracted price
are close to the standalone fair value of these services.
Revenue recognition for both the promises:
(i) Sourcing of loans: The consideration for this service is arrived based on an agreed percentage/fee on the loans disbursed during the year. Revenue for sourcing of loans shall be recognized as and when the loans are disbursed. The revenue therefore, for this service, shall be recognized based on the disbursements actually made during each year.
(ii) Servicing of loans: The consideration for this service is arrived based on an agreed percentage on the actual collections during the year. The Company receives servicing commission only on actual collections. Revenue for servicing of loans shall be recognized over a period of time, as the customer benefits from the services as and when it is delivered by the Company. However, since the Company has a right to consideration from a customer in an amount that corresponds directly with the value of service provided to date, applying the practical expedient available under the standard, the Company shall recognise revenue for the amount to which it has a right to invoice.
49 Additional Regulatory information as per amendments in Schedule III of Companies Act, 2013 (MCA notification dated March 24, 2021)
(i) The Company doesn't have any immovable property whose title deeds are not held in the name of the Company.
(ii) Investments made by the Company is carried at amortized cost in the financials.
(iii) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) during the year or previous year.
(iv) The Company has not revalued its intangible assets during the year or previous year.
(v) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are a) repayable on demand; or b) without specifying any terms or year of repayment.
(vi) Capital Work in Progress & Intangible Assets under Development are nil for current year and Previous year.
(vii) The company doen't hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder and no proceedings have been initiated or pending against the company for the same.
(viii) The Company has not made any default in repayment of its financial obligations and is not declared wilful defaulter by any bank or financial Institution or other lender.
(ix) The company has reviewed transactions to identify if there are any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956. To the extent information is available on struck off companies, there are no transaction with struck off companies.
(x) There is no charges or satisfaction to be registered with ROC beyond the statutory period.
(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
(xii) Company has not traded/invested in crypto currency or virtual currency during the current year and previous year.
(xiii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(xiv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(xv) Liquidity Coverage Ratio:-
The Company follows the criteria laid down by RBI for calculation of High Quality Liquid Assets (HQLA), gross outflows and inflows within the next 30-day period. HQLA predominantly comprises cash and balance with other banks in current account. All significant outflows and inflows determined in accordance with RBI guidelines are included in the prescribed LCR computation template.
50 The Company have accounting software to manage its books of account, incorporating an audit trail (edit log) feature. This feature is consistently utilized throughout the year for all transactions recorded in the software, and backup is taken periodically of these transactions. Additionally, measures are in place to establish necessary controls aimed at preventing or identifying any tampering with the audit trail feature.
(ii) Investments
The Investment of the company as on March 31, 2024 : INR 467.09 million (March 31, 2023: INR 633.59 Million). (Refer Note -6)
(iii) Derivatives
The Company has no transactions / exposure in derivatives in the current and previous years.
The Company has no unhedged foreign currency exposure as on March 31, 2024 (March 31, 2023: Nil).
(vii) Details of non-performing financial assets purchased/sold
The Company has not purchased /sold non-performing financial assets in the current and previous year, except the sale of non performing assets to Asset Reconstruction Company as mentioned in Note 50 (A)(v).
(viii) Exposures:-
The Company has no exposure to the real estate sector and capital market directly or indirectly in the current and previous year.
There is no intra group exposure in the current and previous year.
(ix) Details of financing of parent company products
The Company does not finance the products of the parent / holding company.
(x) Unsecured advances
The Company has not given any Loans and advances against intangible securities during the current and previous year
(xi) Registration obtained from other financial sector regulators:-
The Company is not registered with any other financial sector regulators.
(xii) Disclosure of Penalties imposed by RBI & other regulators:-
No penalty has been imposed by RBI or any other lending institutions in connection with any lending arrangements during current and previous year.
(xiii) Draw down from reserves:-
There has been no draw down from reserve during the period ended March 31,2024 (31 March 2023: Nil).
(xiv) Divergence in Asset classification and provisioning:-
There is no Divergence assessed by Reserve Bank of India.
(e) Institutional set-up for liquidity risk management
The Board has the overall responsibility for management of liquidity risk. The Company has a risk management committee responsible for evaluating the overall risks faced by the Company including liquidity risk. The asset liability management committee is also responsible for ensuring adherence to the risk tolerance and implementing the liquidity risk management strategy.
(xxviii) Breach of Covenant:-
There was no breach of covenants of loans availed or debt securities issued by the Company during the year ended March 31, 2024.
During preceding year ended March 31,2023, there was a delay of two days for the interest payment of Rs.64.86 million towards ISIN- INE046W07180. As that payment was made within the curing period, it has not been considered as default as per terms of the respective agreement. Also, there were three cases of non-compliance of key performance indicators as required by the lenders and the company has got the waiver confirmation from them.
(xxix) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the NBFC
The Company did not exceed the limits prescribed for single and group borrower during the current and previous year.
(xxx) Overseas assets
The Company did not have any joint ventures and subsidiaries abroad.
(xxxi) Off-balance sheet SPVs sponsored
There are no off-balance sheet SPVs sponsored which are required to be consolidated as per accounting norms as at end of current and previous year.
53 Previous year's figures have been regrouped and reclassified, wherever necessary to conform to current year's presentation / classification.
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