Shriram: Vivek Achival Company

SHRIRAM
Trenspart Finance Cornpany Limited
A WINNING RELATIONSHIP
SEC/FILING/NSE-BSE/20-21/68B July 24, 2020
The Secretary National Stock Exchange of India Limited

BSE Limited Exchange Plaza, 5th floor
P J Street Plot no. C/1, G- Block
Dalal Street, Bandra Kurla Complex
Mumbai—
Mumbai – 400
400 001. Bandra (East), Mumbai - 400 051.
Scrip Code : 511218 Scrip Code : SRTRANSFIN
Dear Sir/Madam,
Sub: Regulation
Sub: Regulation 30 and Regulation
30 and Regulation 34 of of the
theSEBI
SEBI(Listing
(ListingObligations
Obligations and
and Disclosure
Disclosure
st
Requirements) Regulations, 2015 (‘Listing Regulations’) – Notice
Requirements) Regulations, 2015 Misting Regulations') — Notice of of the 41 Annual General
41" Annual General
Meeting and Annual Report for the Financial Year 2019-20
In continuation
continuation to our letter dated June 10, 2020 and pursuant to Regulations
Regulations 30 and 34 read
paragraph A
with paragraph A of Part A ofof Schedule
Schedule III
III of
of the
the Listing
Listing Regulations,
Regulations, we are enclosing
enclosing the
Annual Report for
Annual Report for the Financial
Financial Year
Year 2019-20 also containing
2019-20 also Notice of
containing Notice 41st Annual
of the 41st Annual General
General
Meeting of the Company (including e-voting instructions) scheduled to be held on Wednesday, August
19, 2020 at 3.30 p.m. through Video Conferencing (VC)/ Other Audio Visual Means (OAVM).
41st Annual General Meeting and the Annual Report for the Financial Year 2019-20
The Notice of the 41st
is available on the Company's website at the link:
https://www.stfc.in/investors/annual-reports/
https://www.stfc.in/investors/armual-reports/
In compliance with the General

General Circular
Circular Nos.
Nos. 14/2020
14/2020 dated
dated April
April 08,
08, 2020,
2020, 17/2020
17/2020 dated
datedApri113,
April13,
2020 and 20/2020 dated May 05, 2020 issued by the Ministry of Corporate Affairs and SEBI Circular
dated May 12, 2020, electronic copies of the Annual Report for F.Y.2019-20 also containing Notice of
the 41st Annual
the 41st Annual General
General Meeting
Meeting ofof the
theCompany
Company (including
(including e-voting
e-voting instructions)
instructions) are
are being
being
dispatched to all the
dispatched the Members
Members whose
whose email
email addresses
addresses are
are registered
registered with
with the
the Company/Depository
Company/Depository
Participant(s).
Kindly take the same on record.
Thanking you,
for SHRIRAM TRANSPORT FINANCE COMPANY LIMITED
VIVEK ACHIVAL
COMPANY SECRETARY
Encl:a/a
End:a/a
Shriram Transport
Shriram Transport Finance
Finance Company
Company Limited
Limited
Corporate Office: Wockhardt
Wockhardt Towers,
Towers, Level
Level —
— 3,
3, West Wing, C-2,
West Wing, C-2, G-Block,
G-Block, Bandra
Bandra —
— Kuria Complex, Bandra
Kuria Complex, Bandra (East),
(East), Mumbai
Mumbai — 400 051.
— 400 051. Tel:
Tel: +91
+91 22
22 4095 9595 II Fax:
4095 9595 Fax: +91
+91 22
22 4095
4095 9597.
9597.
Mookambika Complex,
Registered Office: Mookambika Complex, 3,1
3,1 Floor,
Floor, No.4,
No.4, Lady
Lady Desika
Desika Road,
Road, Mylapore,
Mylapore, Chennai
Chennai — 600 004,
— 600 004, Tamil Nadu, India.
Tamil Nadu, India. Tel:
Tel: +91
+91 44
44 2499 0356 II Fax:
2499 0356 Fax: +91
+91 44
44 2499
2499 3272.
3272.
Website: www.stfc.in II Corporate
Website: www.stfc.in Corporate Identity
Identity Number
Number (CIN) — L65191TN1979PLC007874.
(CIN) — L65191TN1979PLC007874.
Shriram Transport Annual Report
Finance Company Limited 41st 2 0 1 9 - 2 0
Contents
Corporate information 1
About Us 2
Performance in numbers 4
Annual performance trends standalone basis 5
Our reach 7
Environmental, Social and Governance Report 8
Management discussion & analysis 13
Directors’ Report 21
Corporate governance report 51
BUSINESS RESPONSIBILITY REPORT 74
Standalone accounts 85
Consolidated accounts 205
notice 306
Forward looking statement
In this Annual Report, we 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, contain forward
looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible
to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of
similar substance in connection with any discussion of future performance.
We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in assumptions.
The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or
uncertainties materialise or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated,
estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events
or otherwise.
Corporate
Information
Corporate Identity Number (CIN)

Registered office
L65191TN1979PLC007874
Mookambika Complex, 3rd Floor, No. 4,
BOARD OF DIRECTORS Lady Desika Road, Mylapore, Chennai – 600 004.
Tel No. : +91 44 2499 0356 Fax: +91 44 2499 3272
Chairman (Non - Executive)
Mr. S. Lakshminarayanan (Independent)
Corporate office
Managing Director & CEO
Mr. Umesh Revankar Wockhardt Towers, West Wing, Level-3, C-2, G-Block, Bandra-Kurla
Complex, Bandra (East), Mumbai - 400 051.
Directors
Tel No. : +91 22 4095 9595, Fax: +91 22 4095 9597
Mrs. Kishori Udeshi (Independent)
Mr. S. Sridhar (Independent)
Mr. Pradeep Kumar Panja (Independent) listed at
Mr. Puneet Bhatia
Mr. D. V. Ravi National Stock Exchange of India Limited
Mr. Gerrit Lodewyk Van Heerde BSE Limited
(upto May 08, 2019)
Mr. Ignatius Michael Viljoen List of Institutions
(w.e.f. May 14, 2019)
• International Finance Corporation (IFC)
Executive Director & CFO • Life Insurance Corporation of India
• Micro Units Development and Refinance Agency Bank (MUDRA)
Mr. Parag Sharma • National Bank for Agriculture and Rural Development (NABARD)
• NEC Capital Solutions Limited
COMPANY SECRETARY • Oesterreichische Entwicklungsbank AG (OeEB)
• Proparco
Mr. Vivek Achwal • Small Industries Development Bank of India (SIDBI)
Auditors List of Banks

M/s. Haribhakti & Co., LLP, Chartered Accountants
• Allahabad Bank(Merged with Indian • Mizuho Bank Limited
M/s. Pijush Gupta & Co., Chartered Accountants
Bank) • MUFG Bank
• Andhra Bank(Merged with Union • Oriental Bank of Commerce (Merged
Registrar & Share Bank of India) with Punjab National Bank)
transfer agent • Axis Bank Limited • PT Bank Rakyat (Indonesia)Persero
• Bank of America N.A. Tbk, Singapore Branch
Integrated Registry Management Services Private • Bank of Baroda • Punjab & Sind Bank
Limited,
• Bank of India • Punjab National Bank
2nd Floor, ‘Kences Towers’, No. 1,
Ramakrishna Street, North Usman Road, • Bank of Maharashtra • Qatar National Bank Q.P.S.C
T. Nagar, Chennai - 600 017. Tel No. : +91 44 281 408 • Barclays Bank PLC • RBL Bank Limited
01/02/03, Fax: +91 44 2814 2479 • BNP Paribas SA • Shinhan Bank
• Canara Bank • South Indian Bank Limited
Debenture trusteeS • Central Bank of India • Standard Chartered Bank
• Citibank N.A. • State Bank of India
IDBI Trusteeship Services Limited
Asian Building, Ground Floor, 17, R Kamani Marg, • Credit Suisse • Sumitomo Mitsui Banking
Ballard Estate, Mumbai – 400 001. • DBS Bank Limited Corporation
Mr. Jatin Bhat • Deutsche Bank AG • Syndicate Bank
Tel No. : +91 22 40807000, Fax: + 91 22 66311776 • Doha Bank (Merged with Canara Bank)
itsl@idbitrustee.com • Emirates NBD Bank PJSC • The Hongkong and Shanghai
Axis Trustee Services Limited • FirstRand Bank Limited Banking Corporation Limited
The Ruby, 2nd Floor, SW, 29 Senapati Bapat Marg, • HDFC Bank Limited • The National Bank of Ras Al
Dadar West, Mumbai- 400 028. • ICICI Bank Limited Khamirah
Mr. Anil Grover • IDBI Bank Limited • The Zoroastrian Co-operative Bank
Tel No. : + 91 22 6230 0451, Fax: +91 22 6230 0700 • IDFC First Bank Limited Limited
debenturetrustee@axistrustee.com • Indian Bank • UCO Bank
Catalyst Trusteeship Limited (Formerly known as • Indian Overseas Bank • Union Bank of India
GDA Trusteeship Limited) • IndusInd Bank Limited • United Bank of India(Merged with
Office No. 604, 6th floor, Windsor, • ING Bank, a Branch of ING-DiBa AG Punjab National Bank)
C.S.T. Road, Kalina, Santacruz (East), Mumbai 400098. • JP Morgan Chase Bank N.A. • United Overseas Bank
Mr. Umesh Salvi
• Karnataka Bank Limited • Woori Bank
Tel No. : +91 22 – 49220555, Fax: +91 22 49220505
umesh.salvi@ctltrustee.com • KEB Hana Bank • Yes Bank Limited
• Kotak Mahindra Bank Limited
Shriram Transport Finance Company Limited 1

About US
Shriram Transport Finance Company Limited (STFC)

is the flagship company of Shriram Group – a diversified
group with interests in financial services viz. Commercial
vehicle finance, Consumer Finance, life and general
insurance, stock broking, chit funds and distribution
of financial products such as life and general insurance
products and units of mutual funds.
Established in 1979, STFC is an asset financing

Non-Banking Finance Company.*
Headquartered in Mumbai, STFC has played a

credible role in financial inclusion of millions
of First Time Buyers (FTBs) and driver-turned-
owner (DTO) by offering affordable finance on
pre-owned commercial vehicles (CVs).
*RBI has merged Asset Financing Companies, Loan Companies and Investment companies in to a new category “NBFC -
Investment and Credit Company” vide its circular no. DNBR (PD) CC. No. 097/03.10.001/2018-19 dated February 22, 2019
2 Annual Report 2019-20

A professionally managed company, STFC has fostered the culture of
entrepreneurship across all levels in the organization. Presently, the
company is driven by 28,045 employees (including business team ~22,000)
championing a unique “relationship-based” business model through a
pan-India network comprising 1,758 branches, 831 rural centers and
partnerships with ~500 private financiers.
STFC, being a pioneer in pre-owned CV segment, has institutionalized its

expertise in loan origination, valuation and collection. Over the years, STFC
has created “an ecosystem of empowerment” by expanding its products and
services to encompass similar asset classes (pre-owned and new commercial
and passenger vehicles, tractors, 3 wheelers, multi-utility vehicles, etc.) and
ancillary services (finance for working capital, engine replacement, small
business finance loans, tyre-loans and fuel loans as holistic financing support).
STFC is listed on the BSE Ltd (stock code:

511218) and the National Stock Exchange of
India Ltd (stock code: SRTRANSFIN). Its market
capitalization as on March 31, 2020 stood at
Rs. 14,770 crores.

performance in numbers
Standalone basis
Assets under management stands at Rs. 109,750 crores
Securitisation done during the year Rs. 16,581 crores
Total income for the year Rs. 16,583 crores
Profit after tax for the year Rs. 2,502 crores
Net interest income for the year Rs. 7,917 crores
Earnings per share for the year Rs. 110.27

Annual
performance trends standalone basis
Assets under management (Rs. crores) Total income (Rs. crores)
18000
16,583
16000 15,557
110000 109,750
104,482
100000 95,306 96,253 14000

13,501
102,307
108,502
79,673
96,198
90000 12,417
12000
80000 78,761 10,831
72,760 10,293
65,463
10000
61,878
70000
60000
8000
50000
40000 6000
30000
4000
20000
2000
10000
10,882
13,298
15,633
2,175
1,248
55
0 0
2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20# 2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20#
On books Off books
Net interest income (Rs. crores) Net profit (Rs. crores)
2700
2,461 2,564 2,502
2400
7,917 2100
8000
7,762
7000 6,785 1800
6,735
1,568
6000
1500
5,521
5,121
5000 1,257
1200
1,178
4000
900
3000
600
2000
300
1000
0 0
2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20# 2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20#
* Figures as per IGAAP. # Figures as per Ind AS.

Annual
performance trends standalone basis (Contd.)
EPS (Basic) (Rs.) NPA/stage 3 (%)
120
113.01 110.27
110
108.45
100
90
80
70 69.11 10
9.4
9.2
9
60 8.4 8.4
8.2
8
55.42
50
51.93 7
6.2
5.7
40 6
5.6
6.4
5
30
4 2.8
20 3
2.7
1.9
2
10
1
0
0
2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20# 2015-16* 2016-17* 2017-18* 2017-18# 2018-19# 2019-20#
*IGAAP Gross NPA net npa

#Ind AS Gross Stage 3 net Stage 3
* Figures as per IGAAP. # Figures as per Ind AS.

Our Reach
Branch Network as on March 31, 2020 : 1,758 BRANCHES
Jammu & Kashmir 10
Himachal Pradesh 22
Punjab 24 Chandigarh 2
Uttarakhand 11
Haryana 35
Delhi 11
Sikkim 3
Rajasthan 93 Uttar Pradesh 104
Bihar 63
Assam 25
Gujarat 67 Manipur 1
Meghalaya 1
Tripura 5
West Bengal 45
Madhya Pradesh 130 Jharkhand 34
Dadra and Nagar Haveli 1 Odisha 35
Chhattisgarh 54
Maharashtra 158
Telangana 73
Goa 1
Andhra Pradesh 107
Karnataka 165
Puducherry 12
Tamil Nadu 384

Kerala 82
List of branches with addresses is available on the Company’s website at the web link:
http://www.stfc.in/branch-locator.aspx

Environmental, Social
and Governance
Report
At Shriram Transport Finance Company Limited (hereinafter referred to as STFC), we are committed to report henceforth,
regularly updated information on our environmental, social and governance (ESG) performance. This section provides details of
our ESG concerns and performance, and other useful sources of information in our Annual Report and on our website.
At STFC, since last 40 years we believe in doing business responsibly, sustainably and in line with our values. This has been a key
to building a successful business in the past and over the long term. We recognise our responsibilities not only to our shareholders,
customers, lenders and employees, but also to the wider communities we serve.
We provide information about the impact of our business on people and the environment, as well as on the steps we take to ensure
good corporate governance.
You can find further information about how STFC does business and its broad approach to many ESG-related topics in the
approach section of this report, and details on Social bonds issued by STFC in this section.
The profile of ESG investing has risen rapidly in recent years. Fund managers and small and large investors are placing an
increasing emphasis on ESG issues. This reflects changing societal and consumer expectations and a growing call for businesses to
play a stronger role in tackling these issues. STFC suggests that, in addition to believing that businesses should do the right thing,
investors increasingly see ESG issues as a differentiating factor in the long-term performance of the companies they invest in.
The details of ESG requirements are described below in various paragraphs, as follows:
SHRIRAM WAY OF DOING BUSINESS

When Drivers become Owners: Changing the face of modern India from the perspective of Used-vehicle Finance
STFC started its journey in the year 1979. The journey started with the mission of serving the aspirations of a perceived undeserved
and hence neglected common man; by providing Host of Products and Services that would be helpful to him on his path to
prosperity. The aspiration of being an entrepreneur and owner brings to him and his family prosperity, social status and prestige.
STFC realised one of the most significant contradictions of credit in India. Those who needed it the most were the ones
who could not access it.

Environmental, Social and Governance Report
The stepping stone of the organisational journey was providing finance for purchase of Pre owned trucks. STFC strongly empathises
and believes that viability and liability should be in consonance with aspiration and ability. While others were not confident
of providing finance for pre owned trucks because they considered it as risky; STFC built its business model by developing
capabilities in team to do proper assessment of value of the pre-owned truck, financing with sufficient equity participation,
collection of instalments month on month by being continuously in touch, providing time to time support and guidance for
smooth running of business, management of funds and successful ownership of the income generating asset.
STFC in its 40 years of existence has been able to make its humble contribution to Society. Constant support by each and every
team member of STFC has helped the customers to become a successful owner of truck and go on to add more and more trucks
over years.
“Though the Business environment changes and Products also change, STFC’s Relationships with Customers remain the
same.”
CUSTOMERS
We aim to grow in a way that puts the customer at the centre by improving performance with digital enhancements while
maintaining strong controls on the risk of financial crime.
Our relationship with customers - We create value by providing products and services to our customers’ need and aim to do so in
a way that fits seamlessly into their lives. This helps us to build long-lasting relationships with our customers.
When it comes to relationship, collection of dues is an important aspect. Despite being an Asset Financing NBFC, with security
of a commercial asset ensuring collecting of dues, we believe in creating entrepreneurship and ownership and hence we insist
on customers’ equity and stake at the inception of credit and support customers in prudent management of their business. We
are committed and responsible towards honouring their aspiration and hence don’t take hasty decision of depriving them of
their income generating asset in the topsy-turvy’s of their transport business. Our dedicated on-roll employees are in constant
touch with the customers with the feeling of customer service and collection responsibility and they very well understand the
importance of hard earned public money deployed as credit. Besides, keeping up with the pace of technological advancements
and need of the hour, organisation on a continuous basis is enabling customers with various options of making payment of dues
and avoid penalties of delayed payments.
We maintain trust by striving to protect our customers’ data and information, and delivering fair outcomes for them. If things do
go wrong, we aim to take action in a timely manner.
Operating with high standards of conduct is central to our long-term success and underpins our ability to serve our customers.
Acting on feedback - Based on feedback, we have launched a number of measures that are currently being rolled out across all of
our products and business lines. For example:
Area of Focus Action

Improving customer service Endless efforts towards reaching out and expeditiously serving customer expectations
digitally up to the satisfaction level of serving physically has been duly recognised as need
of the hour. Besides, well drafted and communicated policy and procedures on Grievance
Redressal Mechanism aim at assuming high standards of customer service.
Making our processes Customer Service aspect in the company surpasses hierarchical bounds and every employee
of STFC is empowered to give ideas / suggestions to the management for betterment of
Easier
processes and customer service, with all deserved recognition. There is an Employee
Rewards Program serving this cause. STFC has always been highly compassionate and
thankful in hearing from its workforce serving customers through its branch network and
expeditiously acting towards their customer relationship aspects.
Enhancing customer Usage of chosen vernacular language in our communications, keeping customers updated
and enthused through newsletters, technologically connected through mobile applications,
Experience
etc.
EMPLOYEES
The philosophy of Relationship and Connect is reflected not only in customer service, but it is a Shriram Way of doing Business.
Our Employees are our highly valued and honoured Assets and we leave no stone unturned in recognising and nurturing talents
and relationships.
STFC has believed in identifying Local Talent and has built in-house facilities to Train, Nurture and Build People, and Build

Leadership for bigger responsibilities. Almost all the employees in Top Notch Roles are the ones who started their journey with
the company and with trainings, continuous guidance & mentoring have reached highly respected levels in the organisation.
STFC believes that to understand and connect with its customers with diversities of profiles, aspirations and languages, talents are
identified locally. Further, the talents are acclimatised, groomed and nurtured by their Supervisors, Training Team, Review Panels,
Seniors and Mentors. Company has built continuous Learning Platform E-Learning, Virtual Classrooms. Future Leadership
Training-Talent Pool is prepared on a periodical basis based on various performance parameters and such employees are being
trained at a regular interval to prepare themselves for leadership roles in future.
Shriram Transport Finance also has Management Learning Programmes within the company which enables employees to undergo
Management courses and build Managerial skills. The low Attrition rate supports that the Company cares for its Employees.
STFC Training Team imparts various trainings at periodical intervals, namely Induction Training- Targeting the new employees
who are inducted in to the Organization, Refresher Training-Targeting the existing employees on various products and process
to upgrade on the recent changes, Future Leadership Training-Talent Pool is prepared on a periodical basis based on various
performance parameters and such employees are being trained at a regular interval to prepare themselves for leadership roles In
future, etc.
STFC in association with Shriram Leadership Academy has developed a customized E-Learning Platform wherein STFC’s all
Products and Processes are explained in a simple pictorial easy to understand format. It serves as an Orientation Platform for not
only to new employees but also to existing employees.
Also through our Management Education Scheme, all employees are encouraged to enroll the program for improving their
managerial skills. The program not only aims at up-skilling the team, but also gives recognition to successful candidates in form
of certificates and hike of pay.
Apart from the above mentioned training programs employees are provided a ready reckoner learning materials in the form of
video or PDF in their respective employee portal.
Learning materials are also shared through SMS Links and WhatsApp for quick learning.
Name of the Program No. of Employees Covered

Induction Program 8,318
Refresher Program 3,170
E-Learning 25,927
Future Leadership Program 510
Management Education Scheme 1,295
** for FY 2019-2020
Besides Training, management also engages with the employees, as a continuous process, through periodical Reviews wherein key
stakeholders ensure that the employee is well directed and oriented towards the desired learning and performance parameters,
which ensures their confirmations, promotions, role elevations, etc.
Women Diversity in Employee Workforce:
Out of the total workforce of 5,912 employees in Support Team, Our Women representation is 1,326 which constitutes 22% of the
total support team.
ENVIRONMENT
STFC after building a strong base in funding of Pre owned Trucks started providing finance to small customers for purchase of
Construction Equipments, Cars & Passenger Vehicles, Farm Equipments used for Commercial purpose. To enable the customers
smoothly run their business, STFC started identifying its customers having other business and providing financial support for
smooth running of the other business. Thus STFC became an “END TO END SOLUTION PROVIDER” to those associated with
Transport, Construction, Farming Industry.
While building on funding of Pre owned vehicles /equipments, STFC has been responsibly shifting focus towards conscious and
contributory Environmental Management. A key initiative is to shift our policy, from providing finance to vehicles with age more
than 15 years it moved to vehicles no older than 12 years in first phase, and now only to vehicles no older than 10 years in line
with Govt of India policy for addressing the Environmental issues. Pollution Under Control (PUC) Certification & BS Norms
(EURO Norms equivalent in India) compliance takes precedence in our business sourcing, prospective customer interactions and
funding decisions.

Environmental, Social and Governance Report
In addition to our internal policy, we proactively educate drivers on the importance of environmental sustainability and the
importance to obtain and renew periodically the Pollution Under Control (“PUC”) certificate under India’s Central Motor
Vehicles Rule. The number of trainings delivered are explained in the section below. Furthermore, STFC encourages its customers
to replace their old age vehicles with younger age vehicles and thus works for its contribution to Environment.
SOCIAL
STFC has been contributing to Society by its philosophy of Empowering People, be it Customers or be it Employees it believes
“PEOPLE FIRST”. Shriram Transport Finance has been financing First Time Users/First Time Buyers who have aspiration to
become an Entrepreneur. Shriram Transport Finance has been playing pivotal role in creating Entrepreneurs in the country,
provide Employment opportunities for Drivers/Helpers /Loaders /Mechanics etc. and has never ever shifted its focus from bottom
of Economic Pyramid.
STFC beyond its Customers and Employees has been caring for Society by providing Training and Skilling Programs which helps
the Youth to get employment, e.g. Drivers Training Programme; by providing scholarships to needy children so that they can
complete their education and by providing health checkups and medicines so that the Society is healthy, educated and employed.
Besides, as a Holistic Financial Service provider STFC cares for the financial well being of the families of its customers through
Insurance Coverage; worth mentioning is the presence of SLIC (Shriram Life Insurance Company) & SGIC (Shriram General
Insurance Company) in Shriram Group.
CUSTOMER LOAN ASSET

LIFE INSURANCE – CREDIT SHIELD – COMPREHENSIVE COVER – FOR
ASSET & THIRD PARTY LOSS
LIFE CONTINUES IN CASE OF ASSET OWNERSHIP REMAINS WITH
UNFORTUNATE DEMISE OF FAMILY IN CASE OF DEMISE OF
CUSTOMER CUSTOMER
In line with STFC’s commitment to social development, STFC has established a Social Financing Framework, which aligns
STFC’s capital raising strategy with positive social impact. The Framework has been reviewed by Sustainalytics who has issued a
Second Party Opinion, deeming it credible and impactful, and by KPMG who has issued a limited assurance report. In January
2020, STFC issued its first USD500 million social bond. Details related to STFC’s social financing can be accessed through:
https://www.stfc.in/investors/social-finance-framework/
Augmenting livelihoods through vocational and skill trainings
Government of India under its “Skill India mission “has initiated a number of schemes to achieve this end. Since inception the
Government has emphasised that this vision cannot be achieved without multi-stakeholder collaboration, the corporate sector &
business houses marked as a critical contributor. STFC has contributed towards this national goal by extending trainings for the
skilling, re-skilling and up-skilling of drivers.
Key focus of STFC’s driver training project
Training is given to new drivers.
Includes training in light motor vehicles (LMVs) and heavy motor vehicles (HMVs) and stressing on Rules/regulations, Safe
Driving, Health & Hygiene, environmental protection, etc.
Jobs/placement linkages, primarily in the commercial transport industry, are provided to trained drivers.
Skill Building outreach
Year FY 2017-2018 FY 2018-2019 FY 2019-2020
LMV 318 1028 792
HMV 390 711 777
Total number of Candidates Trained 708 1739 1569
** 3892 male candidates
** 124 female candidates
Preventive Health Care Program for Truckers
Securing good health and well-being through Mobile Medical Units (MMUs) – A Good Health Ecosystem building Platform for
transport fraternity.

Guided by the National Health Mission’s (NHM) vision of ensuring that all people in the country can access quality and affordable
health services, “MMU/Clinic” provide free-of-cost medical check-ups, lab tests and medicines to truckers community, that
remain largely isolated from mainstream healthcare eco systems. STFC funded MMUs/Clinic are functional across 27 locations.
It aims at improving the accessibility to primary healthcare for the weaker sections of the society.
Key focus of STFC funded MMUs/Clinic
Free primary healthcare services.
Screening, diagnosis, treatment and referral for non-communicable, communicable diseases, and minor ailments.
Awareness, education and counselling on healthy practices, lifestyle modifications, non-communicable disease management etc.
A unique model of Tobacco Cessation Counselling and referrals program for trucking community.
Multi stakeholder partnership – Transport Associations, Government and Non – Govt. agency.
FY 2018 – 2019 FY 2019 - 2020

Unique Revisits Total Unique Revisits Total
Registrations Registrations
TOTAL 1,72,868 65,007 2,37,875 1,98,757 1,31,883 3,30,640
Enhancing futures through better opportunities for quality education
STFC has been making specific contributions towards the achievement of the global goal by extending scholarships to enable and
augment formal education and learning for children and youth from the families of transport fraternity.
EDUCATIONAL REGULAR SCHOLARSHIP
Year BELOW 8th 8th 9th 10th 11th 12th TOTAL

2018-19 1,195 15,189 9,361 6,458 6,303 1,010 39,516
2019-20 - 11,825 13,981 8,856 7,583 2,378 44,623
HIGHER EDUCATION SCHOLARSHIP

Diploma/ Polytechnic Graduation Total
248 1,473 1,721
DATA MANAGEMENT
Disclosure about Data Security and Privacy
STFC has various security controls in place to mitigate risks and safeguard the Company against security breaches and technological
lapses, including established disaster recovery centres located in different seismic zones, periodic upgrading of servers and data
storage, and accreditation from the International Organisation for Standardisation for our Company’s information security
management system.
External Auditors conducts data security audits of ISO 27001 standard, Cyber Security, Vulnerability assessment and penetration
testing (VAPT) on annual basis.

Management
Discussion
and Analysis
Indian Economy, COVID-19 pandemic and ago. The contraction of CAD was primarily on account of a
lockdown lower trade deficit and rise in net services receipts.
The Indian economy had witnessed an average GDP growth Despite the weak domestic growth outlook, Indian equity
rate of 6% over the last decade and is one of the fastest markets scaled new highs, before turning highly volatile in
growing economies in the world. early-March in tandem with global equity markets. The net
During the year 2019-20 the agriculture sector set a new FDI inflows at USD 37.8 billion during April-January 2019-20
record of food grain production on account of good were substantially higher than a year ago. Portfolio investment
monsoon. As per the third advance estimates of the Ministry recorded net outflows of USD 5.2 billion during 2019-20 (up to
of Agriculture released on May 15, 2020, the agriculture and March 25) as against USD 6.6 billion a year ago. India’s foreign
allied activities has achieved increase of 3.7 per cent in food exchange reserves surged $3.43 billion to an all-time high of
grains production. By benefiting from the bumper harvest, $493.48 billion for the week ended May 29, 2020 on the back
the Rabi crop procurement in respect of oilseeds, pulses and of strong inflow of funds by foreign portfolio investors. In May
wheat has been encouraging. alone, forex reserves jumped by a sharp $12.4 billion.
However, during April-February:2019-20, the industrial The Indian Rupee came under intensified and sustained
growth decelerated by slowdown in manufacturing activity. depreciation pressures beginning mid-January, reflecting
Services sector activity had moderated. a generalised weakening of emerging market currencies
amidst flights to safety.
Overall export and imports had shrunk by 1.5% and 7.3%
respectively. With imports declining more than exports, the The novel Corona virus outbreak originated in Wuhan
trade deficit narrowed to USD 143.1 billion in April-February province of China. The World Health Organization
2019-20 as compared to USD 173 billion in corresponding (WHO) declared novel Corona virus as pandemic on 11th
period of April-February 2018-19. The Current Account March,2020. In anticipation of lower global demand following
Deficit (CAD) narrowed to 0.2% of GDP in Q-3 2019-20 the outbreak of the COVID-19 pandemic (‘pandemic), and
from 0.9% in Q-2 of 2019-20 and from 2.7% in Q3 of a year its rapid geographical spread, the Brent crude oil prices
crashed to USD 32 per barrel on March 9, 2020, plunged to

US$ 25 per barrel on March 18, 2020 and fell further to US$ banking financial companies (NBFCs), housing finance
23 on March 30, 2020. Financial markets across the world companies (HFCs) and mutual funds (MFs):
experienced extreme volatility since January 2020 on account
(i)The government proposed to launch Rs 30,000 crore
of outbreak of the pandemic. The global equity markets and
special liquidity scheme where the government will buy
commodity prices also fell sharply since January, 2020.
investment-grade debt papers of NBFCs, HFCs, and MFIs.
The pandemic has taken its toll on not just human life, but These securities will be fully guaranteed by the Government.
business and financial markets too, the extent of which is These NBFCs, which do not have high quality debt papers,
currently indeterminable. In many countries., Including India, can now support the MSMEs dependent on them. (ii)The
there has been severe disruption to regular business operations government proposed Rs 45,000 crore liquidity infusion
due to lockdowns, disruptions in transportation, supply chain, through a partial guarantee scheme which will cover
travel bans, quarantines, social distancing and other emergency commercial papers and borrowings. The first 20 percent loss
measures. On March 24, 2020, the Indian government will be borne by Government. Double AA-rated paper and
announced 21 day lockdown which was further extended by unrated papers will all be eligible.
19 days and 14 days across the country to contain the spread
The Tax measures announced by the Hon’ble Finance Minister
of virus. The nationwide lock down had lasted for 68 days till
include reduction in TDS and TCS rated by 25% of the existing
31st May, 2020. The top 6 industrialised states that account for
rates aimed at releasing liquidity of Rs. 50,000 crore.
about 60 per cent of industrial output were largely in red or
orange zones. The pandemic led to collapse of demand across Due to pandemic the government had laid focus on relief
both urban and rural areas from March 2020. The biggest blow measures including capacity built up of medical facilities
from the pandemic has been to private consumption, which to face pandemic, control its spread and saving human life,
accounts for about 60 per cent of domestic demand. In the free distribution of food grains and cereals for two months
production sectors, industrial production shrank by close to for pandemic affected people, free railway travel of migrated
17 per cent with manufacturing activity down by 21 per cent in workers.
March 2020. The output of core industries, which constitutes The Budget 2000 provided a planned investment up to
about 40 per cent of overall industrial production, contracted Rs. 2.83 lakh crore for rural economy and Rs. 1.7 lakh
by 6.5 per cent. The production of consumer durables fell by crore for infrastructure development. The pace of highway
33 per cent in March 2020, accompanied by a 16 per cent construction had increased from 12 km/day to 27 km/day.
decline in the output of non-durables. Similar indications are The Budget also abolished dividend distribution tax. In
reflected in surveys of the fast moving consumer goods space. September 2019, the government announced reduction of
The spread of pandemic led to massive sell offs by FPIs in the corporate taxes.
Indian Equity market.
RBI measures to face challenges of the pandemic
The nationwide lockdown paralysed economic and social
The RBI has announced the following relief measures to ease
activities and resulted into severe blow to economy. In order to
the stress on the financial condition of the market due to the
strike the balance between the economic priority and to save
pandemic :
the country from recession and large scale unemployment, the
government of India took decision to progressively unwind Repo rate was reduced by 75 basis points to 4.4%, from
the lockdown (Unlocking-1) with effective from June 1, 2020. the earlier rate of 5.15%.RBI further reduced the Repo
The state governments are empowering to decide the scope Rate to 4% on May 22, 2020;
and extent of Unlocking in a phased manner depending upon
The reverse repo rate has been reduced by 90 basis
severity of the spread of the pandemic at zones classified as
points to 4%. RBI further reduced the reverse repo rate
red, orange and green zones. No relaxation/exemptions have
to 3.75% on April 17, 2020 and to 3.35% on May 22,
been given in Containment areas.
2020.
Aatma Nirbhar Bharat (Self-Reliant India)
RBI maintained the accommodative stance of monetary
The Indian Government, the Reserve Bank of India and other policy as long as necessary to revive growth, mitigate the
regulators have announced various measures and relaxations impact of the pandemic, while ensuring that inflation
acknowledging the pandemic led situation to ensure that remains within the target.
there is enough liquidity in the hands of market participants
The RBI announced various relaxations including (a)
and provided moratoriums to the borrowers in terms of their
deferment of interest for 3 months on working capital facilities;
repayments to the financial institutions.
(b) easing of working capital financing requirements by
The Hon’ble Finance Minister highlighted the government’s reducing margins or reassessment of working capital cycle; (c)
vision and though to build ‘Atma Nirbhar Bharat (Self-Reliant exemption from being classified as ‘defaulter’ in supervisory
India) to spur growth in this tough time. FM announced 14 reporting and reporting to credit information companies;
different measures including 6 for MSMEs and 2 for NBFCs. (d) extension of resolution timelines for stressed assets; and
Following measures were announced for the benefit of non- (e) the group exposure limit of banks is being increased from

Management Discussion and Analysis
25 per cent to 30 per cent of eligible capital base, for enabling receivable and most of the trusts/banks/institutions have
corporates to meet their funding requirements from banks. agreed for providing moratorium. The company will further
The increased limit will be applicable up to June 30, 2021. seek consent from these Trusts/Banks/institutions for
granting moratorium for the instalments falling due between
(f) directed the banks and NBFCs to offer to its borrower a
June 1, 2020 and August 31, 2020 from the concerned
Moratorium of three months form 1st March,2020 to May
borrowers involved in these transactions.
31,2020 for repayment of loans. Subsequently, the Moratorium
period was extended up to 31st August, 2020 in view of The Company has made provision of Rs.909.64 crore in the
extension of the lock down. Accordingly, the repayment account for the FY 2019-20 for the pandemic led losses.
schedule of the Term loans as also the residual tenor of the
RBI took measures to augment systemic liquidity, tightened
Term Loans have been shifted across the board by another three
asset and liability management framework, eased flow
months after the moratorium period. The interest rate charged
of funds by relaxing external commercial borrowings
during the Moratorium period will be the contracted rate at
(ECB) guidelines and strengthened governance and risk-
which loan agreements were entered into with the borrowers.
management structures.
The Interest charged during the moratorium period will be
collected after the revised last instalment due date based on the
Financial Services Sector
moratorium granted by the company. Such Interest amounts
would be collected in instalments and the instalment amount India’s financial services sector comprises of commercial
will be equivalent to the current instalment amount and the last banks/co-operative banks, non-banking financial companies,
instalment will be adjusted to arrive at the present contracted insurance companies, pension / mutual funds and other
rate of such loan agreements. In case of revolving working various entities. India is expected to be fourth largest private
capital credit facilities in the form of Floating Business Loans, wealth market globally by 2028.
Vehicle trade advance loans to dealers and working capital The country’s financial services sector consists of the capital
loans to borrowers (fuel, toll loans etc.), the borrowers will be markets, insurance sector and non-banking financial
allowed deferment of another three months on payment of companies (NBFCs). India’s gross national savings (GDS)
interest in respect of such facilities during the period June 1, as a percentage of Gross Domestic Product (GDP) stood at
2020 and August 31, 2020. The accumulated interest for the 30.50 per cent in 2019.
period March 1,2020 to August 31, 2020 will be converted into
a funded interest term loan and the said funded term loan on NBFC Sector
account of accumulated interest will be repayable by March NBFC sector plays important role in financial inclusion
31,2021. by meeting credit needs of retail and MSME sector. The
AFCs, LCs and ICs were merged into new category called
As of May 31, 2020, the Company had offered Moratorium
‘Investment and Credit Company (NBFC-ICC). As per RBI
to 94% of its borrowers. The Company communicated the
regulations, NBFCs with minimum Net Owned Funds of Rs.
information regarding the Moratorium to the borrowers
200 lakhs are allowed to operate. This resulted into reduction
through digital or electronic modes. It was noticed that in
in number of NBFCs from 9,856 at the end of March,2019
April, 2020, 23% borrowers repaid the loan instalments in
to 9,642 NBFCs at the end of September,2019. There are 69
part/full to save additional interest chargeable on account of
deposit accepting NBFC.
moratorium. This number was increased to 48%in the month
of May, 2020. The credit delivery of NBFC sector constituted 18 per cent
in the overall composition of total credit. It provides efficient
This measure shall not result in asset classification
credit distribution reach to untapped and under-penetrated
downgrade. The asset classification of term loans which are
regions and customer class. The primary activities of NBFCs
granted relief shall be determined on the basis of revised
are providing consumer credit, including automobile
due dates and the revised repayment schedule. Similarly,
finance, home finance and consumer durable products
working capital facilities where relief is provided, the Special
finance, wholesale finance products such as bills discounting
mention accounts (SMA) and the out of order status shall
for small and medium companies and infrastructure finance,
be evaluated considering the application of accumulated
and fee based services such as investment banking and
interest immediately after the completion of the deferment
underwriting. NBFCs have carved niche business areas for
period as well as the revised terms.
them within the financial sector space and are also popular
The Company has securitised/assigned its loan receivables for providing customized products. For instance, your
to SPVs/Banks/institutions and the company has been Company providing finance for re-possessed vehicles at the
appointed as servicer for collection of instalments from doorstep of the customer. NBFCs bring the much needed
the borrowers and remittance of the same to SPVs/Banks/ diversity to the financial sector.
Institutions. The Company had sought moratorium from the
Although the NBFC sector grew in size from Rs. 26.2 lakh
trusts/banks/institutions for the instalments due between
crore in 2017-18 to Rs. 30.9 lakh crore in 2018-19, the pace
March 1, 2020 and May 31, 2020 for securitised/assigned
of expansion was lower than in 2017-18 mainly due to rating

downgrades and liquidity stress in a few large NBFCs in the NBFCs-D registered a marginal improvement as growth in
aftermath of the a large NBFC committing default interest own funds outpaced expansion in loans and advances. At
payment and loan repayment obligation to banks and security end- September 2019, CRAR of NBFCs-ND-SI and NBFCs-D
holders. This slowdown was witnessed mainly in the NBFCs- remained above the stipulated norm despite divergent trends.
ND-SI category, whereas, NBFCs- D broadly maintained their
The default by one large NBFC has shaken the market
pace of growth. However, in 2019-20 (up to September) growth
confidence and created ripple effect over the entire NBFC
in balance-sheet size of NBFCs-ND-SI as well as NBFCs-D
sector. The crisis faced by a large prominent financial
moderated due to a sharp deceleration in credit growth.
institution of the country in September led to drying-up
Credit extended by NBFCs continued to grow in 2018-19. bank lending, thereby forcing NBFCs to scout for alternate
Industry is the largest recipient of credit provided by the sources of funding.
NBFC sector, followed by retail loans and services. Credit
In February 2019, Reserve Bank of India (RBI) had eased risk
to industry and services was subdued in relation to the
weight norms to increase credit flow to NBFCs.
previous year. However, growth in retail loans continued its
momentum. The banks are now required to assign differential risk-weights
to their exposures to NBFCs based on ratings assigned by
Over 40 per cent of the retail portfolio of NBFCs are vehicle
credit rating agencies, as against the existing practice of a
and auto loans. The slowdown in auto loans in 2018-19 could
uniform risk weight of 100%.
be attributed to a slump in aggregate demand, exacerbated
by postponement of vehicle purchases in anticipation of The move is aimed at not only freeing up capital for banks for
the implementation of BS-VI norms, the sharp increase further lending but also slash borrowing costs for well-rated
in insurance costs in case of passenger vehicles and two NBFCs, which have been grappling with a systemic liquidity
wheelers, and sizeable enhancement in permissible axle load crisis triggered by a series of defaults by a large prominent
for commercial vehicles. In the consumer durables segment, financial institution and its subsidiaries.
a decline in credit extended was observed, reflecting muted Highlights of Budget impacting NBFCs
consumer demand.
Reduced asset size of NBFCs from Rs. 500 crore to Rs. 100
NBFCs are generally well capitalised, with the system level crore to become eligible for debt recovery under SARFAESI
capital to risk-weighted assets ratio (CRAR) remaining well Act
above the stipulated norm of 15 per cent, including in 2018-
NBFCs can pursue loan recovery under SARFAESI Act for
19 when they experienced an increase in non-performing
loans starting at Rs. 50 lakhs which was earlier Rs. 100 lakhs.
assets. At the end of September 2019, the sector maintained
the capital position although there was a deterioration in This will help NBFCs check rise of non-performing assets
asset quality. ratio of NBFCs and strengthen recovery process.
The CRAR for all categories of NBFCs-ND-SI except NBFCs- Sovereign Credit Guarantee for stressed assets to help
MFI and IDF-NBFCs, decreased from 2017-18 levels, but it improve liquidity crunch in the system and boost credit
remained above the regulatory norm. For NBFCs-MFI, the growth, improvement in asset quality and CRAR of NBFCs.
CRAR improved with rising profitability. The CRAR for
Invoice Financing by NBFCs is expected to help MSME
sector to access to credit sand working capital. This is providing new source of business to NBFCs.
FINANCIAL AND OPERATIONAL PERFORMANCE (as per Ind AS)
(Rs. in Crores)
Sr.
No. Particulars 2019-20 2018-19
1 Total Income 16,582.63 15,556.66
2 Net Interest Income 7,916.77 7,762.04
3 Capital Adequacy Ratio 21.99% 20.27%
4 Assets Under Management 109,749.24 104,482.29
5 Securitization done during the year 16,581.13 15,123.06
During the F.Y. 2019-20,the Stage 3 Assets was 8.36% in F.Y. 2019-20 as compared to 8.37% in F.Y. 2018-19. The Stage 3 Assets
net of Stage 3 Provision was 5.62 % in F.Y. 2019-20 as compared to 5.65 % in F.Y. 2018-19. There are no significant changes in key
financial ratios of the Company for F.Y. 2019-20 as compared to F.Y. 2018-19. The return on equity was 14.71% as on March 31,
2020 as against 17.52 % as on March 31, 2019 due to additional expected credit loss provision of Rs 909.64 crores on account of
COVID-19 impact in the financial statement.

COMMERCIAL AND PASSENGER VEHICLE techniques, relationship-based approach, extensive branch

INDUSTRY network and strong valuation skills make our business model
The automobile industry produced a total 1,447,345 vehicles unique and sustainable as compared to other financiers.
including Passenger Vehicles, Commercial Vehicles, Three The Company believes that our business model is easily
Wheelers, Two Wheelers and Quadricycle in March 2020, scalable at local levels throughout India. The Company
as against 2,180,203 in March 2019 with a degrowth of (-) has an established track record of developing and training
33.61%. The Passenger Vehicles sales was 143,014 units recruits on our internally developed valuation techniques,
in March 2020, compared to 291,861 units in March 2019 substantial customer knowledge and relationship culture
marking a decrease by (-) 51%. The Commercial Vehicles the Company have developed over the past four decades.
sales was 13,027 units in March 2020 compared to 109,022 The Company believes this is a key strength which enables
units in March 2019 marking a decrease by (-)88.05%. us to provide finance to pre-owned commercial vehicle
The Three-wheeler sales was 27,608 units in March 2020 operators at favourable interest rates and repayment terms as
compared to 66,274 units in March 2019 marking a decrease compared to private financiers in the unorganised sector. The
by (-) 58.34%. The Two-wheeler sales was 866,849 units in Company has been engaged in the initiative to corporatize
March 2020, compared to 1,440,593 units in March 2019 the pre-owned CV financing business. We have established
marking a decrease by (-) 39.83%. its leadership in the segment and created sustainable
competitive advantage through deep understanding of the
The industry produced a total 26,362,284 vehicles including borrower profile and their credit behavior.
Passenger Vehicles, Commercial Vehicles, Three Wheelers,
Two Wheelers and Quadricycle in April-March 2020 as against
Internal Control System and its Adequacy
30,914,874 in April-March 2019 with a decline of (-)14.73%.
The Company believes that strong internal control system
The Passenger Vehicles sales was 2,775,679 units in April- and processes play a critical role in the health of the Company.
March 2020, compared to 3,377,389 units in April-March The Company’s well-defined organizational structure,
2019, down by (-)17.82%. The Commercial Vehicles sales documented policy guidelines, defined authority matrix and
was 717,688 units in April-March 2020 compared to internal controls ensure efficiency of operations, compliance
1,007,311 units in April- March 2019, down by (-) 28.75%. with internal policies and applicable laws and regulations
The Three-wheeler sales was 636,569 units in April-March as well as protection of resources. Moreover, the Company
2020 compared to 701,005 units in April-March 2019, down continuously upgrades these processes and systems in line
by (-) 9.19%. The Two-wheeler sales was 17,417,616 units in with the best available practices. The internal control system
April-March 2020, compared to 21,179,847 units in April- is supplemented by extensive internal audits, regular reviews
March 2019, down by (-) 17.76%. by the management and standard policies and guidelines
The Automobile industry witnessed one of its sharpest decline which ensure reliability of financial and all other records.
in domestic sales in March 2020 due to subdued demand and The Internal Audit reports are periodically reviewed by the
consumer sentiments which was further aggravated by the Audit Committee. The Company has, in material respect, an
pandemic in the country. adequate internal financial control over financial reporting
and such controls are operating effectively. The Company’s
PRE-OWNED COMMERCIAL VEHICLES Internal Auditor performed regular reviews of business
The impact of pandemic along with upcoming environmental processes to assess the effectiveness of internal controls.
and safety regulations (e.g. BS6), is likely to dampen the Internal Audits were carried out to review the adequacy of
demand for new vehicles. An increasing number of buyers the internal control systems, compliance with policies and
might choose to defer their new vehicle purchase or procedures.
shift towards buying pre-owned vehicles. The pre-owned
commercial vehicles segment has been the focus area for the Human Resources
Company ever since its inception. The pre-owned commercial The HR department turned the ‘Lockdown’ into a new
vehicles are affordable to aspiring owner-cum-drivers who opportunity promoting culture for using new methods of
are small road transport operators with limited banking efficient working, striking work-life balance, switching to
habits and credit history for verification of creditworthiness. Work From Home (WFH), Employee Training through
The pre-owned commercial vehicles financing industry in company’s e-learning platform “Mycoach” and video based
India is dominated by private financiers in the unorganized learnings were given prime importance and total of 24738
sector. The Company intends to continue to strategically employees were trained and assessed on their learnings.
expand our marketing and customer network by entering During the lockdown HR Department with the help of the
into partnerships and co-financing arrangements with regional teams had engaged with the employees telephonically
private financiers across India involved in commercial vehicle on various safety measures to be followed, learning options
financing. As the market for commercial vehicle financing, available with the company and on customer engagement.
especially pre-owned commercial vehicle financing, is Total of 16,402 employees were covered during the lockdown.
fragmented, the Company believe our credit evaluation The employees, in particular working in metro cities, who

spend average 3 hours on commuting, spent same time on Opportunities
discharging their official duties. The ‘Lockdown’ gave many Growth in the commercial vehicles, passenger vehicles
new learnings, ideas and experience with respect to effective and tractors market
communication techniques, efficient time management,
Meeting working capital needs of persons in commercial
thereby improving overall efficiency, cost optimization.
vehicles eco-system
The importance of focusing on digital payment and use of
advanced techniques for customer services, effective use of Partnerships with private financiers for enhancement of
Video conferencing meetings with employees, directors was reach without significant investments
also highlighted and understood during ‘Lockdown’ period. Penetration into rural markets for financing cargo light
The Company’s field employees used Mobile Application commercial vehicles
‘MNOVA’ and educated the customers to use ‘My Shriram’ On boarding customers on technology platform
Mobile Application for availing of various services in Higher budgetary allocation by the Government to give
respect of the Company’s financial products. The Company boost to infrastructure sector involving construction of
is ensuring the health and well-being of employees during roads, new airports, ports etc. creating huge demand for
the pandemic and creating awareness amongst employees Commercial Vehicle
to strictly follow the ‘Social Distancing’. Due to many of its
Cross selling of insurance products, invoice discounting
advantages, the HR department is exploring the possibilities
etc.
to progressively switching in a phased manner using the
best combination of work from place and WFH for cost Threats
optimization, increasing overall efficiency and mitigating the Competition from captive finance companies, small
associated risks of data safety and protection. banks and FinTechs
There was a net addition of 1,415 employees during the year Ad-hoc policies on phasing out of older vehicles
2019-20 and total strength of employees as on March 31, Inadequate availability of bank finance and upsurge in
2020 was 28,045. The average age of the employees is about borrowing cost
29 years. For further details please refer to the Business
External risks associated with liquidity stress, political
Responsibility Report.
uncertainties, fiscal slippage concerns, etc.
SWOT Analysis Risk Management

Strengths The Company is exposed to variety of risks such as credit
Pioneer in the pre-owned commercial vehicles financing risk, economy risk, interest rate risk, liquidity risk and cash
sector management risk, technology risks etc. The Company has
Asset Financing Company in India with Pan-India Enterprise Risk Management Framework which involves risk
presence with 1,758 branch offices. identification, risk assessment and risk mitigation planning
for the Company. The pandemic risk was unprecedented
Unique relationship-based business model with
and caused many disruptions and uncertainties globally.
extensive experience and expertise in credit appraisal
The Company swiftly activated the Business Continuity
and collection process
Plan to face challenges of pandemic. The BCP is reviewed
Strong brand name periodically.
A well-defined and scalable organizational structure
The Board of Directors has constituted a Risk Management
based on product, territory and process knowledge
Committee consisting majority of Directors. The terms
Consistent financial track record with rapid growth in of reference of the Risk Management Committee include
AUMs periodical review of the risk management policy, risk
Experienced senior management team management plan, implementing and monitoring of the
Strong relationships with public, private as well as risk management plan and mitigation of the key risks.
foreign banks, institutions and investors, The Risk owners are accountable to the Risk Committee
2.12 million customers across India for identification, assessment, aggregation, reporting and
monitoring of the risk related to their respective areas/
Weakness
functions. We have taken Directors and Officers insurance
Business and growth directly linked with the GDP policy cover to mitigate legal risks to directors and senior
growth of the country management.
Company’s Customers-SRTOs and FTUs are more
vulnerable to negative effects of economic downturn

The Company taken steps to mitigate the operations risk We ensure that cash collected from our customers by the
by use of Artificial Intelligence and Machine Learning for Field staff is deposited into the Company’s Account on same/
automated lending, customer centric approach, upskilling next day . We have tied with Post office in few states for as
and re-skilling of its manpower. Our expertise in credit a part of efficient cash management. We are also working
appraisal and collections developed over the past three with Fino Money, Airtel. Our Field staff is enabled with
decades helps mitigating credit risk. We lend on relationship MNOVA Mobile Application in which the collections can
based model applying advanced credit assessment procedures be accounted. Some of our branches are also equipped with
and maintain regular contact with customers. In order to Cash Deposit Machines for the customers. We are educating
mitigate operation risk we continuously monitor our internal and encouraging our customers to adopt advanced methods
processes and systems. of payment . We have started engaging with the customers
actively with Digital mode of collections using our MyShriram
In order to mitigate liquidity risk, we ensure that the
Mobile Application. We have enabled various modes
short term and long-term fund resources are favourably
including BBPS (Wallets) through which the customer can
matched with deployment. We resort to long-term funding
make the payment against his/her Loan accounts. We have
instruments and securitization. We continue to enjoy the
also collected NACH mandates from some of the customers.
trust and support from our investors, security holders,
The NACH mandates are sent to the Bank on respective due
depositors, banks and financial institutions, due to our
dates with an intimation to the customers. We have adopted
impeccable record in servicing its debt obligations on time.
stringent checks and internal controls across all branches. At
In order to mitigate interest rate risk, we have developed the regional level, the branch collections are monitored and
innovative resource mobilization techniques. In order to reconciled on a daily basis.
mitigate liquidity risks we have diversified the source of
fund raising and widened the borrowing options to exploit Future Strategy
opportunities and appetite in the international market for
The Board has determined the following medium-term and
bonds of reputed Indian companies. We issued U.S. Dollar
long term strategies to achieve its corporate goals over a
senior secured notes in the international market, which are
period of next 3-5 years:
fully hedged. We have adopted prudent fund management
practices. Periodical review of Business Continuity plan, liquidity
management.
The Company’s Asset Liability Management Committee
regularly reviews, among others, the interest rate and To focus on digital initiatives to effectively service
liquidity risks. customers and to educate customers on the digital
payment of EMIs.
We are diversifying our assets portfolio focusing on passenger
vehicles and tractors segment. We have also started financing Effective use and implementation of data analytics in
the working capital needs of petrol pumps, tyre dealers, the process of loan disbursement and loan recovery
vehicle body builders and workshops forming part of Further strengthening the leadership position in
ecosystem of commercial vehicle operations. financing vehicles
In order to mitigate cash management risk associated with Further enhancing quality of loan portfolio
collection of loan instalments, we have initiated steps to on
boarding our customers on technology platform. Historically, Maintaining customer loyalty through winning
substantial part of our loan recovery was in the form of cash relationship and customer satisfaction.
due to peculiar profile and business pattern of our customers. Promoting Work From Home, innovative method of
We have effectively used the Digital mode during the initial working culture, employee up-skilling and re-skilling.
lock down period and cash component of the collections has
significantly dropped during last couple of months. Our loan Outlook
instalment collection process is efficient and secured through
The damage to the global economic activity caused by the
a robust cash management network. We have been making
pandemic is estimated to be severe than the financial crises
continuous efforts to achieve efficient cash/cheque collection
of the year 2008–09. With massive dislocations in global
systems by availing Cash Management Service from private
production, supply chains, trade and tourism, the global
and public sector banks. It is not necessary for our customer
economy is projected to contract sharply (minus 3 per cent) in
to visit our branches to deposit the cash/cheque for making
2020. There is a rising probability that large parts of the global
payment of loan instalment. The Customers can visit any of
economy will slip into recession. The depth of the recession
our tie-up banks and deposit money into our account against
and the pace of recovery in 2021 would depend on the speed
their Loan accounts.
of containment of the pandemic and the efficacy of monetary

and fiscal policy actions by various countries. If the pandemic of 2020-21. Nonetheless, downside risks to this assessment
is prolonged and supply chain disruptions get accentuated, the are significant and contingent upon the containment of the
global slowdown could deepen, with adverse implications for pandemic success of Unlocking of the Social and Economic
India. restrictions being done in a phased manner. Given all these
uncertainties, GDP growth in 2020-21 is estimated to remain
Considerable worsening of key demand indicators are seen
in negative territory.
in the outlook for Q1 of 2020-21. Apart from the continuing
resilience of agriculture and allied activities, most other The Reserve Bank of India expects that the credit growth is
sectors of the Indian economy will be adversely impacted by likely to remain modest, reflecting weak demand and risk
the pandemic. From the data published by the government on aversion. Going forward, liquidity conditions would be
the COVID-19 infections, patient recovery, spread and deaths, managed under the revised liquidity management framework,
perhaps, the spread and death toll of the pandemic in India consistent with the accommodative stance of monetary policy
would not be as severe as USA and European nations. as long as necessary to revive growth and mitigate the impact
of the pandemic, while ensuring that inflation remains within
On June 01, 2020, Moody’s Investors Service (Moody’s)
the target. Better transmission of monetary policy impulses to
downgraded the Government of India’s foreign-currency and
the credit market would remain a priority of RBI.
local-currency long-term issuer ratings to Baa3 from Baa2.
Moody’s has also downgraded India’s local-currency senior The Company will continue focusing on financing of pre-owned
unsecured rating to Baa3 from Baa2, and its short-term local commercial and passenger vehicles, further strengthening
currency rating to P-3 from P-2. its presence, reach and penetration into rural and urban
centres through large network of branches and rural centres.
However, a ray of hope comes from the forecast of a normal
The Company’s business model offers multiple financing
southwest monsoon in 2020 by the India Meteorological
opportunities. The Company will explore various options to
Department (IMD). According to the initial monsoon forecast
strengthen its capital base and balance sheet to augment the
of IMD, Southwest monsoon seasonal rainfall over the
long term resources for meeting funding requirements of its
country as a whole is likely to be normal (96-104%). India is
business activities, financing the future growth opportunities,
expected to get normal monsoon rains in the year 2020. Kharif
general corporate purposes and other purposes including
sowing is higher by 44 per cent over last year’s acreage. The
effectively facing challenges of the uncertainties and
good performance of agriculture sector and allied activities
disruptions caused by COVID-19 pandemic.
will support farm incomes, improve the terms of trade facing
the farm sector and strengthen food security for the country. Our Company continues to have faith in India’s resilience and
capacity to overcome all odds.
To mitigate the economic difficulties arising out of the
virus outbreak, the Government of India has announced a
comprehensive package of Rs.1.70 lakh crore, covering cash CAUTIONARY STATEMENT
transfers and food security, for vulnerable sections of society, This report contains forward-looking statements extracted
including farmers, migrant workers, urban and rural poor, from reports of Government Authorities / Bodies, Industry
differently abled persons and women. Associations etc. available on the public domain which may
involve risks and uncertainties including, but not limited
Significant monetary and liquidity measures taken by RBI
to, economic conditions, government policies, dependence
and fiscal measures by government should mitigate adverse
on certain businesses and other factors. Actual results,
impact on domestic demand and help spur economic activity
performance or achievements could differ materially from
once normalcy is restored. It is expected that the combination
those expressed or implied in such forward-looking statements.
of fiscal, monetary and administrative measures being
This report should be read in conjunction with the financial
currently undertaken by the government of India would create
statements included herein and the notes thereto. The Company
conditions for a gradual revival in activity in the second half
does not undertake to update these statements.

Directors’
Report
To the Members,
Your Directors have pleasure in presenting their Forty-First Annual Report and the Audited Statements of Accounts for the
financial year ended March 31, 2020.
FINANCIAL HIGHLIGHTS
(Rs. in crores)
Particulars 2019-20 2018-19
Profit Before Depreciation And Taxation 3,579.72 3,821.24
Less: Depreciation, amortization and impairment 141.05 42.97
Profit Before Tax 3,438.67 3,778.27
Less: Provision for taxation 936.83 1,214.28
Profit After Tax 2,501.84 2,563.99
Add: Balance brought forward from previous year 8,070.47 6,829.82
Balance available for appropriation 10,572.31 9,393.81
Appropriations
General reserve 250.19 257.00
Statutory reserve 500.38 514.00
Debenture redemption reserve 235.79 251.47
Dividend on equity shares of Rs.10/- each 272.26 249.57
Tax on dividend 55.96 51.30
Balance carried to Balance Sheet 9,257.73 8,070.47

NOVEL CORONA VIRUS PANDEMIC disruptions on the business activities of NBFCs leading to
On 11th March, 2020, the World health Organization operational constraints. In the last week of March,2020The
(WHO) declared the novel Corona virus as pandemic. The Credit Rating Agency downgraded the ratings of some listed
Company swiftly activated the Business Continuity Plan NBFCs and some instruments issued by the NBFCs including
(BCP) to take effective measures to face disruptions due to our Company. This was followed by other Rating Agencies
the outbreak of novel Corona virus pandemic in India. As revising the credit rating to negative outlook and rating
per the assessment of a Credit Rating Agency, the pandemic watch negative. The credit rating position of the Company as
has created increasing macro-economic challenges and on date is as follows:
Credit Rating Agency Instrument Ratings

CRISIL Bank Loan Long Term CRISIL AA+/Negative
Bank Loan Short Term CRISIL A1+
Long Term Principal Protected Market Linked
CRISIL PP-MLD AA+r/Negative
Debentures
Non-Convertible Debentures CRISIL AA+/ Negative
Subordinated Debt CRISIL AA+/Negative
Short Term Debt CRISIL A1+
Fixed Deposit CRISIL FAAA/Negative
India Ratings & Research Private Limited IND AA+/ Rating Watch
Non-Convertible Debentures
Negative (RWN)
Subordinated Debt IND AA+/RWN
Commercial Paper IND A1+
CARE Non-Convertible Debentures CARE AA+/Stable
Subordinated Debt CARE AA+/Stable
Commercial Paper CARE A1+
ICRA Fixed Deposit MAA+ with Stable
Standard & Poor’s Ratings Long-Term Issuer Credit Rating BB/ Negative Outlook
Short-Term Issuer Credit Rating B
Senior Secured Notes BB
Fitch Ratings Long-Term Issuer Default Rating BB Rating Watch Negative
Short-Term Issuer Default Rating B
Senior unsecured Long Term Rating BB Rating Watch Negative
Senior secured Long Term Rating BB Rating Watch Negative
Local Currency Long Term Issuer Default BB Rating Watch Negative
Rating
The detailed discussion in this regard is covered under the Management and Discussions Report forming part of this report.
DIVIDEND contingencies created by Corona virus pandemic, the Board

Your Directors at their meeting held on October 24, 2019 of Directors have not recommended the final dividend. As
declared interim dividend of Rs. 5/- per equity share (i.e. such, the interim dividend shall be the final dividend for the
50%) for the financial year 2019-20. The interim dividend financial year 2019-20.
was paid on November 19, 2019 and involved a cash outflow The Dividend Distribution Policy forms part of the Corporate
of Rs. 136.76 crores including tax on dividend. In order Governance Report and is also available on the website of the
to conserve cash resources to face the challenges and the Company at https://bit.ly/2WzNefE

Directors’ report
TRANSFER TO RESERVES
The amounts proposed to be transferred to General Reserve, Statutory Reserve and Debenture Redemption Reserve are mentioned
in the Financial Highlights under the heading ‘Appropriations’.
CAPITAL ADEQUACY RATIO

Your Company’s total Capital Adequacy Ratio (CAR), as of March 31, 2020, stood at 21.99% of the aggregate risk weighted assets
on balance sheet and risk adjusted value of the off-balance sheet items, which is above the regulatory minimum of 15%.
OPERATIONS AND COMPANY’S PERFORMANCE

For the financial year ended March 31, 2020, your Company earned Profit Before Tax of Rs.3,438.67 crores as against Rs.3,778.27
crores in the previous financial year and the Profit After Tax of Rs.2,501.84 crores as against Rs.2,563.99 crores in the previous
financial year. The total income for the year under consideration was Rs.16,582.63 crores and total expenditure was Rs.13,143.96
crores.
Mobilization of funds from following sources/instruments was as under:

(Rs. in crores)
Sr.
No. Particulars 2019-20 2018-19
1 Non-Convertible Debentures – Institution 2,960.30 915.00
2 Subordinated Debts – Institutional - 2,360.00
3 Term Loans from Banks – Secured 19,121.64 13,507.30
4 Term Loans from Financial Institutions/ corporates – Secured - 1,569.00
5 Commercial Papers 4,130.00 24,820.00
6 Fixed Deposit 4,226.21 4,956.10
7 Inter Corporate Deposits 207.40 50.00
8 Non-Convertible Debentures Institution- Unsecured - 500.00
9 Non-Convertible Debentures Public Issue- Secured 533.61 4,792.63
10 External Commercial Borrowings (Loan) 1,636.10 2,402.33
11 U.S. Dollar Senior Secured Notes 5,202.13 2,849.90
12 Social Bonds (U.S. Dollar Senior Secured Notes) 3,542.50 -
13 Cash Credit 784.00 -
The total Assets Under Management had increased to ISSUE OF SECURITIES

Rs.109,749.24 crores from Rs.104,482.29 crores. During Share Capital
2019-20, the Company securitized its assets worth Rs.
The paid up Equity Share Capital of the Company stood
16,581.13 crores (accounting for 15.11 % of the total assets
at Rs.226.88 crores consisting of 226,882,736 fully paid-up
under management as on March 31, 2020) as against Rs.
15,123.06 crores during 2018-19. With securitisation, the shares of face value of Rs.10/- each as on March 31, 2020. It
Company ensures better borrowing profile, leading to lower is recalled that the shareholders in the 40th Annual General
interest liability owing to its lending to priority sector as per Meeting held on June 27, 2019 approved cancellation of the
RBI. The outstanding direct assigned portfolio stood at Rs. 48,000 forfeited shares in respect of which the allotment
1,247.53 crores as on March 31, 2020. money was not paid by some of the shareholders. Accordingly,
The Company continued its focus on financing of pre-owned the said 48,000 shares stood diminished from the issued and
commercial vehicles. The relationship based business model subscribed share capital of the Company and Rs.2,40,000/-
enabled us to maintain the leadership position in the prepaid towards application money in respect of the forfeited
owned commercial vehicles financing segment. For further shares was transferred from the forfeited shares account
market penetration, the Company opened 213 new Branches to capital reserve as per the applicable Indian accounting
and other offices. With this the total number of Branch and standards and provisions of the Companies Act, 2013.
other offices across India has now increased to 1,758.

Public Issue of Non-convertible Debentures The said Senior Secured Notes/Social Bonds are listed on
During the year under review, the Company through the Singapore Exchange Securities Trading Limited. All
Shelf Prospectus dated July 09, 2019 offered 10,00,00,000 Senior Secured Notes/Social Bonds issued under the U.S.$
Secured Redeemable Non-Convertible Debentures (NCDs) 3,000,000,000 GMTN Programme are fully hedged and
of face value of Rs. 1,000 each to the Public for an amount would not involve any foreign exchange risk to the Company.
aggregating up to Rs.10,000 crores pursuant to the Securities
and Exchange Board of India (Issue and Listing of Debt FIXED DEPOSITS
Securities) Regulations, 2008 as amended. As on March 31, 2020, there were 12,116 fixed deposits
The Company under the Shelf Prospectus and two Tranche aggregating to Rs.150.02 crores that have matured but
Prospectuses issued and allotted 5,336,070 NCDs aggregating remained unclaimed. There were no deposits, which were
to Rs.533.61 crores. The fund utilization was as per the objects claimed but not paid by the Company. The unclaimed deposits
of the Public Issue of NCDs. The said NCDs are listed on the have since reduced to 5,796 deposits amounting to Rs.56.40
National Stock Exchange of India Limited and BSE Limited. crores. Appropriate steps are being taken continuously to
obtain the depositors’ instructions so as to ensure renewal/
Issue of U.S. Dollar Senior Secured Notes/ Social Bonds repayment of the matured deposits in time.
On April 24, 2019, the Company issued 5.950 percent
Senior Secured Notes due 2022 aggregating to USD 500 DIRECTORS AND KEY MANAGERIAL PERSONNEL
Million to the Qualified Institutional Buyers (QIBs) under Appointment of Directors
the Rule 144A and to the eligible investors outside United
The Board of Directors in its meeting held on May 08, 2019
States under Regulation S of the U.S. Securities Act 1933.
appointed Mr. Ignatius Michael Viljoen as a director of the
Further on July 17, 2019, the Company issued Senior
Company in the category of non-executive non-independent
Secured Notes aggregating to USD 250 Million to the eligible
director in a casual vacancy caused by the resignation of Mr.
investors outside United States under Regulation S of the
Gerrit Lodewyk Van Heerde (DIN 06870337), non-executive
U.S. Securities Act 1933. These notes were issued under
non-independent director of the Company with effect from
the USD 2 Billion Global Medium Term Note Programme
May 14, 2019.The shareholders in its 40th Annual General
(GMTN Programme).The proceeds of Senior Secured Notes
Meeting held on June 27, 2019 passed necessary resolution
have been utilized for onward lending and other activities as
for his appointment as a Director in the category of non-
permitted by the ECB Directions.
executive non-independent director.
Having regard to the opportunities and appetite for the
Retirement of director by rotation
bonds of the reputed Indian companies in the international
market, the Company further updated and upsized from Mr. Puneet Bhatia (DIN 00143973), non-executive non–
USD 2 Billion Global Medium Term Note Programme to independent director of the Company will retire by rotation
USD 3 Billion Global Medium Term Note Programme on at the ensuing 41st Annual General Meeting (AGM) and
December 27, 2019. being eligible, offers himself for re-appointment. His re-
appointment at the AGM will be in the interest of the
Social Finance Framework for issuance of Social Bonds Company. The Nomination and Remuneration Committee
was set up by the Company. On January 16, 2020, the and the Board considered that the re-appointment of Mr.
Company issued 5.100 percent Senior Secured Notes (Social Puneet Bhatia is in the interest of the Company and have
Bonds) aggregating to USD 500 Million under the USD 3 recommended his re-appointment in view of financial
Billion Global Medium Term Note Programme (GMTN acumen and expertise of Mr. Puneet Bhatia.
Programme) to the Qualified Institutional Buyers (QIBs)
under the Rule 144A of the U.S. Securities Act 1933 and to There was no change (appointment/resignation) in the Key
the eligible investors outside United States under Regulation Managerial Personnel namely, Managing Director & CEO,
S of the U.S. Securities Act 1933.The Social Bonds got the Chief Financial Officer and the Company Secretary of the
overwhelming response from investors with the final order Company during the financial year.
book in excess of USD 2.20 billion and oversubscription Declaration by Independent Directors
of >4x. The order book received interest and demand from Pursuant to the provisions of Section 149 of the Companies
marquee Social Bond Investors. Act, 2013, the independent directors have submitted
The net proceeds from the issue of Social Bonds have been declarations that each of them meet the criteria of
utilized by the Company to finance investments in Eligible independence as provided in Section 149(6) of the Act along
Social Projects in accordance with International Capital with Rules framed thereunder and Regulation 16(1)(b) of the
Market Association Social Bond Principles 2018 as permitted SEBI Listing Regulations. There has been no change in the
by the ECB Guidelines.

Directors’ report
circumstances affecting their status as independent directors All the independent directors were present at the meeting.
of the Company. In the meeting, the independent directors reviewed
performance of Non–Independent Directors, the Board as
Policies on appointment of Directors and Remuneration
a whole and Chairman. They assessed the quality, quantity
Your Company recognizes the importance and benefits and timelines of flow of information between the Company
of having the diverse Board to enhance quality of its Management and the Board. The minutes of the independent
performance and has adopted a Policy on Board Diversity directors was placed before the Board and the Board took
formulated by the Nomination and Remuneration note of the same.
Committee. The Company’s Remuneration Policy has laid
down a framework for remuneration of Directors (Executive The Independent Directors expressed satisfaction over the
and Non-Executive), Key Managerial Personnel and Senior performance and effectiveness of the Board, individual
Management Personnel. These Policies are available on the Non-Independent Directors and the Chairman. They also
Company’s website at the weblink: https://bit.ly/32twQkM expressed satisfaction with regard to the flow of information
and https://bit.ly/2DQlAVb The Nomination and between the company management and the Board.
Remuneration Committee also takes into account the fit and
proper criteria for appointment of directors as stipulated by DIRECTORS’ RESPONSIBILITY STATEMENT
Reserve Bank of India. The Company has also formulated Pursuant to the provisions of Section 134(3)(c) and Section
policy on Succession Planning for Directors and Key 134(5) of the Companies Act, 2013, the Directors confirm
Managerial Personnel for continuity and smooth functioning that, to the best of their knowledge and belief:
of the Company.
a) In the preparation of the annual accounts, the applicable
Number of Meetings of the Board accounting standards have been followed along with
Six Board Meetings were held during the financial year. The proper explanation relating to material departures;
details of the Board and various Committee meetings are b) That such accounting policies as mentioned in note 6 to
given in the Corporate Governance Report. the financial statements have been selected and applied
Performance evaluation at Board and independent consistently, and judgments and estimates have been
directors meetings made that are reasonable and prudent so as to give a
The Board has carried out an annual performance evaluation true and fair view of the state of affairs of the Company
of its own performance, the directors individually as well as at March 31, 2020 and of the profit of the Company
as the evaluation of the working of its various Committees for the year ended on that date;
for the financial year 2019-20. The policy on performance c) That proper and sufficient care has been taken for
evaluation of the Directors, the Board and its Committees the maintenance of adequate accounting records in
is available on the Company’s website at the weblink: https:// accordance with the provisions of the Companies Act,
cdn.stfc.in/common/Policy_On_Performance_Evaluation. 2013, for safeguarding the assets of the Company and for
pdf The evaluation was conducted on the basis of a structured preventing and detecting fraud and other irregularities;
questionnaire which comprises performance criteria such
d) The annual accounts have been prepared on a going
as performance of duties and obligations, independence of
concern basis.
judgement, level of engagement and participation, attendance
of directors, their contribution in enhancing the Board’s e) The Company had followed the internal financial
overall effectiveness, etc. The Board has expressed their controls laid down by the directors and that such
satisfaction with the evaluation process. The observations internal financial controls are adequate and were
made during the evaluation process were noted and based on operating effectively.
the outcome of the evaluation and feedback of the Directors,
the Board and the management agreed on various action f) The directors had devised proper systems to ensure
points to be implemented in subsequent meetings. compliance with the provisions of all applicable laws
and that such systems were adequate and operating
The evaluation process endorsed cohesiveness amongst
effectively.
directors, smooth communication between the Board and
the management and the openness of the management in
RBI GUIDELINES
sharing the information with the Board and placing various
proposals for the Board’s consideration and approval. The Company continues to comply with all the requirements
The independent directors met on February 03, 2020 without prescribed by the Reserve Bank of India from time to time.
the presence of other directors or members of Management.

BUSINESS RESPONSIBILITY REPORT Contracts or Arrangements with Related Parties
Pursuant to Regulation 34(2)(f) of the Listing Regulations, All the related party transactions were entered in ordinary
Business Responsibility Report is annexed and forms part of course of business on an arm’s length basis. Hence, no
the Annual Report. disclosure in Form AOC-2 are necessary and the same does
not form part of this report. For details of the transactions
CORPORATE SOCIAL RESPONSIBILITY (CSR) with related party entered in ordinary course of business
Our Company contributed Rs.5 crore to the Prime Minister’s on an arm’s length basis refer to the Note 50 to the financial
Citizen Assistance and Relief Emergency Situations Fund statements.
(PM CARES Fund). The CSR Report for the Financial
As required under the Master Direction - Non-Banking
Year 2019-20 is annexed to this report as Annexure-I. The
Financial Company - Systemically Important Non-Deposit
composition of CSR Committee and the details of the
taking Company and Deposit taking Company (Reserve Bank)
ongoing CSR projects/ programs/activities are included in
Directions, 2016, the policy on materiality of related party
the CSR report/section. The CSR Policy is uploaded on the
transactions and dealing with related party transactions as
Company’s website at the web link: https://bit.ly/2CO7Qty
approved by the Board is uploaded on the Company’s website
EXTRACT OF ANNUAL RETURN at the web link: https://bit.ly/3jkFvMn
Pursuant to the provisions of Section 92(3) of the Act, the There are no materially significant related party transactions
extract of the annual return in form MGT-9 is annexed as made by the Company with Promoters, Directors, Key
Annexure – II. The same is also available on the website of Managerial Personnel or other designated persons which may
the company at the web link: https://www.stfc.in/investors/ have a potential conflict with the interest of the Company at
annual-reports/ large. None of the Directors has any pecuniary relationships
or transactions vis-à-vis the Company save and except the
DISCLOSURES AS PER THE SECTION 134 OF THE payment of sitting fees and commission to Independent
COMPANIES ACT, 2013 READ WITH RULE 8 OF THE
Directors.
COMPANIES (ACCOUNTS) RULES, 2014
Conservation of Energy, Technical Absorption and Foreign Risk Management
Exchange Earnings and Outgo The Company’s Risk Management Policy deals with
The information pursuant to Section 134(3)(m) of the identification, mitigation and management of risks across the
Companies Act, 2013 read with Companies (Accounts) organization. The same has been dealt with the Management
Rules, 2014 is as follows: Discussion and Analysis annexed to the Annual Report.
a. The Company has no activity involving conservation of Whistle Blower Policy/ Vigil Mechanism
energy or technology absorption. The Company’s Whistle Blower policy provides a mechanism
b. The Company does not have any Foreign Exchange under which an employee/director of the Company may
Earnings. report unethical behaviour, suspected or actual fraud,
violation of code of conduct and personnel policies of
c. Outgo under Foreign Exchange – Rs. 148.09 crores.
the Company. The Vigil Mechanism ensures standards of
Loans, guarantee or investments in securities professionalism, honesty, integrity and ethical behavior. The
The loan made, guarantee given or security provided in Whistle Blower Policy/Vigil Mechanism is uploaded on the
the ordinary course of business by a NBFC registered with Company’s website: https://bit.ly/3eH0jde
Reserve Bank of India are exempt from the applicability of Financial summary/highlights
provisions of Section 186 of the Act. As such, the particulars
The details are spread over in the Annual Report as well as
of loans and guarantee have not been disclosed in this Report.
are provided in the beginning of this report.
During the year under review the Company has invested Subsidiaries, joint ventures or associate companies
surplus funds in various securities in the ordinary course of
There were no entity(ies) which became or ceased to be
business. For details of the investments of the Company refer
subsidiaries, joint ventures or associate companies of the
to Note 13 of the financial statements.

Directors’ report
Company during the financial year ended March 31, 2020. • No equity shares (including sweat equity shares) were
Shriram Automall India Limited (SAMIL), Associate of the issued to employees of the company, under any scheme.
Company provides fee-based facilitation services for the sale • The Company has not resorted to any buy back of its
of pre-owned commercial and passenger vehicles, agricultural equity shares during the year under review.
and construction equipment, dealer’s stock of pre-owned two
• There was no change in the nature of business of the
wheelers, etc. repossessed by banks and financing companies.
Company.
SAMIL has 86 Automalls located across the Country. For
the year ended March 31, 2020, SAMIL’s total income from • There was no fraud reported by the Auditors of the
operations was Rs.187.99 crores as against Rs.164.12 crores Company under the Section 143(12) of the Act to the
in the previous year 2018-19 and the Net Profit of Rs.23.41 Audit Committee.
crores as against net profit of Rs.26.23 crores in the previous • Your Company has constituted IT Strategy committee
year 2018-19. and the committee has approved IT Strategy policy,
Internal Financial Control System Cyber Security and Crisis Management Policy and
documents to mitigate the Company’s exposure towards
The Company’s well-defined organizational structure,
IT risks. The Company is prepared to face emerging
documented policy guidelines, defined authority matrix and
cyber threats such as Zero-day attacks, remote access
internal financial controls ensure efficiency of operations,
threats and targeted threats and contains (i) Detection
protection of resources and compliance with the applicable
(ii) Response (iii) Recovery and (iv) Containment
laws and regulations. Moreover, the Company continuously
plan. Your Company has various security controls in
upgrades its systems and undertakes review of policies.
place to mitigate risks and safeguard the Company
The internal financial control is supplemented by extensive against security breaches and technological lapses,
internal audits, regular reviews by management and standard including established disaster recovery centres located
policies and guidelines to ensure reliability of financial and all in different seismic zones, periodic upgrading of servers
other records to prepare financial statements and other data. and data storage, accreditation from the International
The Audit Committee of the Board reviews internal audit Organisation for Standardisation for your Company’s
reports given along with management comments. The Audit information security management system. External
Committee also monitors the implemented suggestions. Auditors conducted data security audits of ISO 27001
Composition of Audit Committee standard, Cyber Security, Vulnerability assessment
The Audit Committee comprised of following directors and penetration testing (VAPT) on annual basis. The
namely, Mr. S. Sridhar – Chairman, Mrs. Kishori Udeshi, Mr. detailed terms of reference of the IT Strategy committee
Pradeep Kumar Panja and Mr. Puneet Bhatia. are given in the Corporate Governance Report forming
part of the Annual Report.
Others
• The Company has a policy for prevention of Sexual
• The material changes and commitments, affecting the
Harassment for Women at Workplace. An Internal
financial position of the Company which has occurred
Complaints Committee has been constituted in line
between the end of the financial year of the Company
with the Sexual Harassment of Women at Workplace
and the date of the Directors’ report – The impact of
(Prevention, Prohibition and Redressal) Act, 2013 (‘the
pandemic has been dealt with in this report under
said Act’). During the year under review, there was one
separate head and also in the Management Discussion
case filed under the said Act.
and Analysis annexed to the Annual Report.
• Disclosure regarding details relating to deposits covered
• There are no significant and material orders passed by
under Chapter V of the Act is not applicable since
the regulators or courts or tribunals impacting the going
our company is a Non-Banking Financial Company
concern status and company’s operations in future. For
regulated by Reserve Bank of India. The Company
other orders, please refer to Note 49 of the financial
accepts deposits as per Master Direction - non-banking
statement containing details of the contingent liabilities.
financial companies acceptance of public deposits
• No equity shares were issued with differential rights as (Reserve Bank) Directions, 2016.
to dividend, voting or otherwise.

• The Company has obtained a certificate from the (Appointment and Remuneration of Managerial Personnel)
statutory auditor certifying that the Company has Rules, 2014.
complied with the requirements of the Regulation 9
The Disclosure required as under Rule 5(1) and 5(2) of the
of the Master Direction – Foreign Investment in India
Companies (Appointment and Remuneration of Managerial
with regard to downstream investments.
Personnel) Rules, 2014 is annexed to this report as Annexure-III.
• The Company has complied with Secretarial Standards
issued by the Institute of Company Secretaries of India AUDITORS
on Board Meetings, Annual General Meetings and Pursuant to the provisions of Section 139 of the Act and
Dividend. the Companies (Audit and Auditors) Rules, 2014, M/s
Haribhakti & Co. LLP, Chartered Accountants, Mumbai (Firm
• The Company has complied with and obtained a
Registration No. 103523W/W100048) and M/s Pijush Gupta
certificate from the statutory auditor certifying that
& Co. Chartered Accountants, Gurugram (Firm Registration
the Company has complied with the requirements of
No. 309015E) had been appointed as joint Auditors of the
the Regulation 9 of the Master Direction – Foreign
Company at the 38th AGM held on June 29, 2017 to hold office
Investment in India with regard to downstream
from the conclusion of the 38th AGM until the conclusion of
investments.
the 43rd AGM of the Company. The Companies (Amendment)
CONSOLIDATED FINANCIAL STATEMENTS Act, 2017 has waived the requirement for ratification of the
Pursuant to Section 129 read with Rule 5 to the Companies appointment of auditor by the shareholders at every Annual
(Accounts) Rules, 2014, Statement containing salient features General Meeting with effect from May 07, 2018. Hence,
of the financial statement of associate company (Form AOC the approval of the members is not being sought for the re-
1) and a statement on consolidated financial position of the appointment of the joint Auditors in line with the resolution
Company with that of the SAMIL, an associate of the Company passed for their appointment at the 38th AGM held on June
is attached to the Annual Report. The consolidated financial 29, 2017. The joint Auditors have confirmed that they are not
statements attached to this Annual Report are prepared in disqualified to act as Auditors and are eligible to hold office
compliance with the applicable Indian Accounting Standards as Auditors of the Company. They have also confirmed that
and Listing Regulations. The annual report and the annual they hold a valid peer review certificate as prescribed under
accounts of SAMIL and the related detailed information shall Listing Regulations. Approval of the members is being sought
be made available to members of the Company seeking such for fixation of remuneration of joint Auditors of the Company
information. The annual accounts of SAMIL are available on for the financial year 2020-21.
the website of the Company viz. https://www.stfc.in/annual- The Auditors’ Report to the members for the year under
reports.aspx review does not contain any qualification, reservation or
Further, pursuant to the provisions of Section 136 of the adverse remark.
Act, the financial statements of the Company, consolidated
SECRETARIAL AUDIT
financial statements along with relevant documents and
Secretarial Audit Report pursuant to the provisions of Section
separate audited financial statements in respect of SAMIL,
204 of the Companies Act, 2013 for the financial year 2019-
are available on the website of the Company www.stfc.in.
20 issued by Mr. P. Sriram, Practicing Company Secretary
PARTICULARS OF EMPLOYEES
(Certificate of Practice No.3310) (Membership No. FCS
The Company has not employed any individual except the 4862) is annexed to this report as Annexure-IV. The report
Managing Director & CEO whose remuneration falls within does not contain any qualification, reservation or adverse
the purview of the limits prescribed under the provisions of remark.
Section 197 of the Act, read with Rule 5(2) of The Companies

Directors’ report
CORPORATE GOVERNANCE ACKNOWLEDGEMENT

Pursuant to Schedule V of the SEBI Regulations the following The Board of Directors would like to place on record their
Reports/Certificates form part of the Annual Report: gratitude for the guidance and cooperation extended by
Reserve Bank of India and the other regulatory authorities.
• the Report on Corporate Governance;
The Board takes this opportunity to express their sincere
• the Certificate duly signed by the Managing Director appreciation for the excellent patronage received from the
& CEO and Chief Financial Officer on the Financial Banks and Financial Institutions and for the continued
Statements of the Company for the year ended March enthusiasm, total commitment, dedicated efforts of the
31, 2020 as submitted to the Board of Directors at their executives and employees of the Company at all levels. We are
meeting held on June 10, 2020 ; also deeply grateful for the continued confidence and faith
• the declaration by the Managing Director & CEO reposed on us by all the Stakeholders including Shareholders,
regarding compliance by the Board members and senior Depositors, Debenture holders and Debt holders.
management personnel with the Company’s Code of
Conduct ; and
• the Management Discussion & Analysis Report
The Auditors’ Certificate on Corporate Governance is

annexed to this report as Annexure-V
AWARDS
Your Company has been awarded by BSE Limited as
Outstanding Performer on BSEBOND Platform under the
Issuer category. Your Company has been actively participating For and on behalf of the Board of Directors
in the Corporate Bond Market and has been mobilizing long S. Lakshminarayanan
term resources by issuing NCDs and getting them listed on New Delhi Chairman
the esteemed stock exchange. June 10, 2020 (DIN: 02808698)

Annexure - I
REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR 2019-2020

1. A brief outline of the Company’s CSR policy,including overview of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR policy and projects or programs:
The object of CSR Policy of the Company is to continue to contribute towards social welfare projects focusing on providing
education, vocational training, promoting health care facilities to economically weaker and underprivileged section of the
Society and to do such other activities as may be permissible under Section 135 of the Companies Act, 2013(‘the Act’) and
the Companies (Corporate Social Responsibility Policy) Rules, 2014(‘the Rules’).The Company’s CSR policy is available on
website of the company https://bit.ly/2CO7Qty
The details of the CSR activities undertaken can be accessed https://www.stfc.in/investors/annual-reports/
2. The Composition of the CSR Committee:

Name of the Member Category
Mr. Umesh Revankar - Chairman Managing Director & CEO
Mr. S. Lakshminarayanan Non Executive-Independent Director
Mrs. Kishori Udeshi Non Executive-Independent Director
Mr. Puneet Bhatia Non Executive-Non-Independent Director
Mr. Pradeep Kumar Panja Non Executive-Independent Director
3. Average net profit of the company for last three financial years:- Rs. 2,641.08 crores
4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above): Rs. 52.82 crores
5. Details of CSR spent during the financial year 2019-2020
(a) Total amount spent in the financial year:- Rs. 53.16 crores
(b) Amount unspent, if any:-Nil
(c) Manner in which the amount spent during the financial year is detailed below :-
(Rs. in crores)
Sr. Nature of CSR project or Sector in which the Projects or Amount Amount spent Cumulative Amount
No Project activity identified. Project is covered programs outlay on the projects expenditure spent: Direct
(1)Local area or (budget) or Programs upto the or through
other project or Sub-heads: (1) reporting implementing
(2) Specify the State Programs Direct period agency*
and Wise expenditure
district where on projects or
projects programs. (2)
or programs was Overheads:
undertaken
1 Ongoing Education
Project
Ongoing Project Scholarship Scheme Education Across India 17.00 19.88 19.88 Direct/
Implementing
Agency
Ongoing Project Chennai Education Chennai 5.00 5.00 5.00 Direct
Mathematical
Institute
2 Ongoing Project Training & Skill
Development

Annexure - I
(Contd.) Directors’ report
(Rs. in crores)
undertaken
Ongoing Project Drivers’ training Training and skill Maharashtra, Tamil 10.00 5.51 5.51 Implementing
development Nadu, Odisha, Agency
Madyapradesh and
Gujarat
3 Ongoing Project Preventive Health
Care
Ongoing Project Mobile Medical Preventive Health Karnataka, Odisha, 10.00 10.81 10.81 Implementing
Unit & Health Care TamilNadu, Agency
Clinic Rajasthan,
Maharashtra,
Telangana, Andhra
Pradesh, West
Bengal, Bihar, Uttar
Pradesh, Assam
Jharkhand and
Punjab.
Ongoing Project Blood Donation Preventive Health Mumbai 1.00 0.20 0.20 Implementing
activity Care Agency
Other Project Contribution to Preventive Health Across India - 5.00 5.00 Direct
PM Cares Fund Care
(COVID - 19)
Pandemic
4 Ongoing Promotion &
Project development of
traditional arts
Ongoing South India Preservation of New Delhi 6.00 4.00 4.00 Direct
Project Club for Art and art,culture and
Culture heritage
Other project Promotion of art Preservation of Mumbai and - 0.37 0.37 Direct
& culture art,culture and Bangalore
heritage
5 Other project Sanitation
Other project Swachh Bharat Sanitation Tamil Nadu 1.00 0.01 0.01 Direct
6 Other project Protection of
flora and fauna
Other project Protection of flora Tree plantation & Chennai 1.00 0.04 0.04 Direct
and fauna Programme
7 Other project Creating
Awareness
about health
hazards,road
safety etc.

Annexure - I
(Contd.)
(Rs. in crores)
undertaken
Other project Truckers Welfare Creating Andhra Pradesh 1.00 0.67 0.67 Implementing
Awareness and Tamil Nadu Agency
about health
hazards,road
safety etc.
8 Other project Miscellaneous Food Maharashtra and - 0.70 0.70 Direct
expenses supply,medit Kerala
ation & yoga
sessions etc.
Total 52.00 52.19 52.19
Overhead 0.82 0.97 0.97
expenses
Grand Total 52.82 53.16 53.16
*Shriram Foundation, Buddy4study,Collective Good Foundation, Terna Public Chartable Trust, Indian Red Cross Society,
Piramal Swasthya Management and Research Institute were implementing agencies involved in the above projects.
6. In case the Company has failed to spend the two percent 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 Report :
Not Applicable since the Company has spent Rs.53.16 crores during the financial year 2019 -2020 as against the
prescribed CSR expenditure of Rs.52.82 crores as per item 4 of this report.
7. A responsibility statement of the CSR committee that the implementation and monitoring of CSR Policy, is in compliance
with CSR objectives and Policy of the Company :
The CSR Committee hereby confirms that the implementation and monitoring of CSR Policy is in compliance with CSR
objectives and policy of the Company.
For and on behalf of the Board of Directors

Umesh Revankar
Mumbai (Chairman, CSR Committee)
June 10, 2020 (DIN :00141189)

Annexure - II
Directors’ report
Form No. MGT-9

EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2020
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
1. REGISTRATION AND OTHER DETAILS

a. CIN L65191TN1979PLC007874
b. Registration Date June 30, 1979
c. Name of the Company Shriram Transport Finance Company Limited
d. Category/Sub-Category of the Company Non-Banking Financial Company
e. Address of the Registered office and contact details Mookambika Complex, 3rd Floor, No. 4, Lady Desika
Road, Mylapore, Chennai, Tamil Nadu – 600004,Telephone
No.: 044-24990356, Fax: 044 2499 3272
f. Whether listed company Yes / No Yes (BSE Limited and National Stock Exchange of India
Limited)
g. Name, Address and Contact details of Registrar and Integrated Registry Management Services Private
Transfer Agent, if any Limited, 2nd Floor, Kences Towers, No. 1, Ramakrishna
Street, North Usman Road, T.Nagar, Chennai – 600017,
Telephone No.: 044-28140801 to 28140803, Fax : 044-
28142479
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total As per Attachment (I)
turnover of the company
3. PARTICULARS OF HOLDING, SUBSIDIARY AND As per Attachment(II)
ASSOCIATE COMPANIES
4. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)
a. Category-wise Share Holding As per Attachment (III)
b. Shareholding of Promoters’ and Promoter Groups’ As per Attachment (IV)
c. Change in Promoters’ and Promoter Groups’ Shareholding As per Attachment (V)
(please specify, if there is no change)
d. Shareholding Pattern of top ten Shareholders (other than As per Attachment (VI)
Directors, Promoters and Holders of GDRs and ADRs)
e. Shareholding of Directors and Key Managerial Personnel As per Attachment (VII)
5. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/ As per Attachment (VIII)
accrued but not due for payment
6. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a. Remuneration to Managing Director, Whole-time As per Attachment (IX)
Directors and/or Manager
b. Remuneration to Other Directors As per Attachment (X)
c. Remuneration To Key Managerial Personnel Other Than As per Attachment (XI)
MD/Manager/WTD
7. PENALTIES / PUNISHMENT/ COMPOUNDING OF As per Attachment (XII)
OFFENCES

Annexure - II
(Contd.)
ATTACHMENT (I)
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company are given below:
Sr. Name and Description of NIC Code of the % to total turnover

No. main products / services Product/ service of the company
1 Finance for commercial vehicles 64920 Other credit granting 96.38%
and other loans
ATTACHMENT (II)
3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sr. Name and address Address of the CIN/GLN Holding/ No. of Applicable
No. of the Company Company Subsidiary / shares held section
Associate (%)
1 Shriram Automall Mookambika U50100TN2010PLC074572 Associate 44.56% 2(6)
India Limited Complex, 3rd Floor, Company
No. 4, Lady Desika
Road, Mylapore,
Chennai, Tamil Nadu,
India - 600004
ATTACHMENT (III)
a) Category-wise Share Holding

Category of Shareholder No. of shares held at the beginning of the year No. of shares held at the end of the year % Change
(01/04/2019) (31/03/2020) during the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A PROMOTERS 0 0 0 0 0 0 0 0 0
1 Indian 0 0 0 0 0 0 0 0 0
A Individual/HUF 0 0 0 0 0 0 0 0 0
B Central Government 0 0 0 0 0 0 0 0 0
C State Governments 0 0 0 0 0 0 0 0 0
D Bodies Corporate 59,173,023 0 59,173,023 26.08 59,554,984 0 59,554,984 26.25 0.17
E Banks / Fis 0 0 0 0 0 0 0 0 0
F Any other (Specify) 0 0 0 0 0 0 0 0 0
Sub Total A(1) 59,173,023 0 59,173,023 26.08 59,554,984 0 59,554,984 26.25 0.17
2 Foreign 0 0 0 0 0 0 0 0 0
A NRI – Individuals 0 0 0 0 0 0 0 0 0
B Other – Individuals 0 0 0 0 0 0 0 0 0
C Bodies Corporate 0 0 0 0 0 0 0 0 0
E Banks / Fis 0 0 0 0 0 0 0 0 0
E Any other (Specify) 0 0 0 0 0 0 0 0 0
Sub Total A(2) 0 0 0 0 0 0 0 0 0
Total shareholding of Promoter (A)= (A) 59,173,023 0 59,173,023 26.08 59,554,984 0 59,554,984 26.25 0.17
(1) +(A)(2)
B Public Shareholding
1 Institutions
A Mutual Funds 7,865,154 28,195 7,893,349 3.48 3,943,036 28,195 3,971,231 1.75 (1.73)
B Financial Institutions / Banks 931,932 210 932,142 0.41 514,773 210 514,983 0.23 (0.18)
C Central Government 0 0 0 0 0 0 0 0 0

Annexure - II
Category of Shareholder No. of shares held at the beginning of the year No. of shares held at the end of the year % Change
(01/04/2019) (31/03/2020) during the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
D State Governments 0 0 0 0 0 0 0 0 0
E Venture capital Funds 0 0 0 0 0 0 0 0 0
F Insurance Companies 0 0 0 0 1,420,553 0 1,420,553 0.63 0.63
G FIIs 5,632 0 5,632 0.00 0 0 0 0 0
H Foreign Venture Capital 0 0 0 0 0 0 0 0 0
Investors
I Any other (Specify) Foreign 115,573,094 0 115,573,094 50.94 146,693,422 0 146,693,422 64.66 13.72
Portfolio Investor
Alternate Investment Fund 0 0 0 0 221,650 0 221,650 0.10 0.10
Sub Total B(1) 124,375,812 28,405 124,404,217 54.83 152,793,434 28,405 152,821,839 67.36 12.53
2 Non-Institutions
A Bodies Corporate
(i) Indian 25,097,529 24,446 25,121,975 11.07 632,850 24,446 657,296 0.29 (10.78)
(ii) Overseas 0 0 0 0 0 0 0 0 0
B Individuals
(i) Individual Shareholders 7416065 2740742 10156807 4.48 7112982 2398083 9511065 4.19 (0.28)
holding Nominal Share
Capital upto Rs.1 Lakh
(ii) Individual Shareholders 2772164 23550 2795714 1.23 1543267 23550 1566817 0.69 (0.54)
holding Nominal Share
Capital in excess of Rs.1 Lakh
C Any other -Clearing 854,344 0 854,344 0.38 979,601 0 979,601 0.43 0.05
Members
-Trusts 349,352 0 349,352 0.15 398,221 0 398,221 0.18 0.03
-NRI 331,986 4,500 336,486 0.15 300,741 4,500 305,241 0.13 (0.02)
- Limited Liability partner ship 61,831 0 61,831 0.03 44,934 0 44,934 0.02 (0.01)
- Foreign Portfolio Investor 2,311,978 0 2,311,978 1.02 0 0 0 0 0
Category 3
- NBFC 307,909 0 307,909 0.14 110 0 110 0.00 (0.14)
- Unclaimed Securities 88,570 0 88,570 0.04 76,690 0 76,690 0.03 (0.01)
Suspense A/c
- IEPF Authority 920,530 0 920,530 0.41 965,823 0 965,823 0.43 0.02
- Foreign National 0 0 0 0 0 0 0 0 0
- Association of Persons / 0 0 0 0 115 0 115 0.00 0.00
Firms
Sub Total B(2) 40,512,258 2,793,238 43,305,496 19.09 12,055,334 2,450,579 14,505,913 6.39 (12.69)
Total Public Shareholding (B)= (B) 164,888,070 2,821,643 167,709,713 73.92 164,848,768 2,478,984 167,327,752 73.75 (0.17)
(1)+(B)(2)
C Shares held by Custodians for GDRs and 0 0 0 0 0 0 0 0 0
ADRs
Grand Total (A) + (B) + ( C) 224,061,093 2,821,643 226,882,736 100.00 224,403,752 2,478,984 226,882,736 100.00
Notes -
I. The Promoter Group as defined under Regulation 2(1)(t) of Securities and Exchange Board of India (Substantial Acquisition of Shares
and Takeovers Regulations, 2011, (SAST Regulations 2011): 1. Shriram Ownership Trust 2. Shriram Financial Ventures (Chennai)
Pvt Limited 3 Shriram Life Insurance Company Limited 4. Shriram General Insurance Company Limited 5. Shriram Credit Company
Limited 6. Shriram Asset Management Company Limited. 7. Shriram Overseas Investments Private Limited 8. Bharat Investments Pte.
Limited, Singapore 9. Shriram City Union Finance Limited 10. Shriram Fortune Solutions Limited 11. Shriram Wealth Advisors Limited
12. Shriram Insight Share Brokers Limited 13. Shriram Financial Products Solutions (Chennai) Private Limited 14. Shriram Housing
Finance Limited 15. Insight Commodities and Futures Private Limited 16. Shrilekha Business Consultancy Private Limited 17. Shriram
Seva Sankalp Foundation 18. SGI Philippines General Insurance Co Inc. 19. Shriram Value Services Limited 20. Novac Technology
Solutions Private Limited 21. Novac Digital Services Private Limited 22. Snottor Technology Services Private Limited.
II. The Persons Acting in Concert (PAC), as defined in the SAST Regulations 2011 for the purpose of Regulation 10 of SAST Regulations,
2011: (i)Sanlam Emerging Markets (Mauritius) Limited, (ii)Shriram Mutual Fund (SMF), (iii)Mr. S Krishnamurthy (Trustee of SMF), (iv)
Mr. V N Shivashankar (Trustee of SMF), (v) Dr. Qudsia Gandhi (Trustee of SMF), (vi) Mr. Mani Sridhar (Trustee of SMF) and (vii) Sanlam
Life Insurance Limited.

Annexure - II
(Contd.)
III. All the entities/persons mentioned in Note No. I and Note No. II are PACs for more than three years, except the entity at Sr. No. (19),
(20), (21) & (22) in Note No. I are PACs for less than three years.
IV. None of the above-mentioned entities/persons in Note No. I and II hold any shares in the Company except the entity at Sr. No. (2) in
Note No. I and (vii) in Note No. II.
ATTACHMENT (IV)
b) Shareholding of Promoter and Promoter Group
Sr. Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the year % change in share
No. Year (as on April 01, 2019) (as on March 31, 2020) holding during the
year (April 01, 2019
No. of % of total % of Shares Pledged / No. of % of total %of Shares Pledged /
to March 31, 2020)
shares Shares of the encumbered to total shares Shares of the encumbered to total
company shares company shares
1 Shriram Capital Limited 59,173,023 26.08 N.A 59,504,947 26.23 N.A 0.15
(Promoter)
2 Shriram Financial Ventures 0 0 N.A 50037 0.02 N.A 0.02
(Chennai) Private Limited –
(Promoter Group)
Total 59173023 26.08 N.A 59554984 26.25 N.A 0.17
ATTACHMENT (V)
c) Change in Promoter and Promoter Group Shareholding ( please specify, if there is no change)
Sr. Particular Shareholding at the beginning Cumulative Shareholding during
No. (April 01, 2019) Increase/ the year (April 01, 2019 to March
Date Decrease in Reason 31, 2020)
No. of shares % of total shares shareholding No. of % of total Shares
of the company shares of the company
1 Shriram Capital Limited 59173023 26.08 27/06/2019 124898 Purchase 59297921 26.14
(Promoter)
Shriram Capital Limited- 0 0 28/06/2019 207026 Purchase 59504947 26.23
(Promoter)
2 Shriram Financial Ventures 0 0 27/06/2019 12518 Purchase 12518 0.01
(Promoter Group)
Shriram Financial Ventures 0 0 28/06/2019 37519 Purchase 50037 0.02
(Promoter Group)
ATTACHMENT (VI)
d) Shareholding Pattern of top ten Shareholders (other than Directors Promoters and Holders of GDRs and ADRs):
Sr. Name Shareholding at the beginning of the Changes during the year Cumulative Shareholding during the
No. Year (as on April 01, 2019) year (March 31, 2020)
No. of Shares % of total shares No. of Shares % of total shares of No. of Shares % of total shares of
of the Company the Company the Company
1 PIRAMAL ENTERPRISES LIMITED
Opening Balance as on 01/04/2019 22,600,000 9.96 0 0 0 0
21/06/2019 0 0 (22,600,000) (9.96) 0 0.00
Closing Balance as on 31/03/2020 0 0 0 0 0 0.00
2 SANLAM LIFE INSURANCE LIMITED
Closing Balance as on 31/03/2020 0 0 0 0 6,757,267 2.98
3 NEW WORLD FUND INC
05/04/2019 0 0 91,580 0.04 4,380,730 1.93
12/04/2019 0 0 10,333 0.01 4,391,063 1.94
05/07/2019 0 0 (1,141,063) (0.50) 3,250,000 1.43
26/07/2019 00 0 (2,587,418) (1.14) 662,582 0.29
02/08/2019 0 0 (257,378) (0.11) 405,204 0.18

Annexure - II
09/08/2019 0 0 (357,800) (0.16) 47,404 0.02
16/08/2019 0 0 (47,404) (0.02) 000 0.00
Closing Balance as on 31/03/2020 0 0 0 0 00 0.00
4 GOVERNMENT PENSION FUND GLOBAL
19/04/2019 0 0 133,329 0.06 4,226,521 1.86
10/05/2019 0 0 76,315 0.03 4,302,836 1.90
21/06/2019 0 0 77,152 0.03 4,379,988 1.93
26/07/2019 0 0 77,129 0.03 4,457,117 1.97
30/08/2019 0 0 363,947 0.16 4,821,064 2.13
27/09/2019 0 0 137,726 0.06 4,958,790 2.19
5 SOCIETE GENERALE / SOCIETE GENERALE - ODI
05/04/2019 0 0 40,944 0.02 3,656,907 1.61
12/04/2019 0 0 (27,041) (0.01) 3,629,866 1.60
19/04/2019 0 0 36,966 0.02 3,666,832 1.62
26/04/2019 0 0 5,823 0.00 3,672,655 1.62
03/05/2019 0 0 (40,302) (0.02) 3,632,353 1.60
10/05/2019 0 0 (236,982) (0.10) 3,395,371 1.50
17/05/2019 0 0 (344,140) (0.15) 3,051,231 1.35
24/05/2019 0 0 (178,185) (0.08) 2,873,046 1.27
31/05/2019 0 0 (30,273) (0.01) 2,842,773 1.25
07/06/2019 0 0 (293,467) (0.13) 2,549,306 1.12
14/06/2019 0 0 (625,247) (0.28) 1,924,059 0.85
21/06/2019 0 0 (149,211) (0.07) 1,774,848 0.78
28/06/2019 0 0 195 0.00 1,775,043 0.78
05/07/2019 0 0 (25,434) (0.01) 1,749,609 0.77
12/07/2019 0 0 314,262 0.14 2,063,871 0.91
19/07/2019 0 0 (426,075) (0.19) 1,637,796 0.72
26/07/2019 0 0 (189,750) (0.08) 1,448,046 0.64
02/08/2019 0 0 (211,616) (0.09) 1,236,430 0.55
09/08/2019 0 0 (128,225) (0.06) 1,108,205 0.49
16/08/2019 0 0 (25,639) (0.01) 1,082,566 0.48
23/08/2019 0 0 38,550 0.02 1,121,116 0.49
30/08/2019 0 0 (110,953) (0.05) 1,010,163 0.45
06/09/2019 0 0 (289,631) (0.13) 720,532 0.32
13/09/2019 0 0 710 0.00 721,242 0.32
20/09/2019 0 0 18,892 0.01 740,134 0.33
27/09/2019 0 0 23,123 0.01 763,257 0.34
04/10/2019 0 0 28,022 0.01 791,279 0.35
11/10/2019 0 0 (10,700) (0.01) 780,579 0.34
18/10/2019 0 0 2,486 0.00 783,065 0.35
25/10/2019 0 0 27,140 0.01 810,205 0.36
01/11/2019 0 0 113,397 0.05 923,602 0.41
08/11/2019 0 0 (89,755) (0.04) 833,847 0.37
15/11/2019 0 0 (28,816) (0.01) 805,031 0.36
22/11/2019 0 0 (26,642) (0.01) 778,389 0.34
29/11/2019 0 0 63,909 0.03 842,298 0.37
06/12/2019 0 0 129,123 0.06 971,421 0.43
13/12/2019 0 0 (3,813) (0.00) 967,608 0.43
20/12/2019 0 0 8,582 0.00 976,190 0.43
27/12/2019 0 0 19,880 0.01 996,070 0.44
31/12/2019 0 0 123,191 0.05 1,119,261 0.49
03/01/2020 0 0 39,425 0.02 1,158,686 0.51
10/01/2020 0 0 (78,878) (0.04) 1,079,808 0.48
17/01/2020 0 0 (31,544) (0.01) 1,048,264 0.46
24/01/2020 0 0 (13,098) (0.01) 1,035,166 0.46
31/01/2020 0 0 (164,137) (0.07) 871,029 0.38

Annexure - II
(Contd.)
07/02/2020 0 0 565,277 0.25 1,436,306 0.63
14/02/2020 0 0 763,617 0.34 2,199,923 0.97
21/02/2020 0 0 60,664 0.03 2,260,587 1.00
28/02/2020 0 0 55,498 0.02 2,316,085 1.02
06/03/2020 0 0 40,051 0.02 2,356,136 1.04
13/03/2020 0 0 (256,052) (0.11) 2,100,084 0.93
20/03/2020 0 0 (658,760) (0.29) 1,441,324 0.64
27/03/2020 0 0 (786,115) (0.35) 655,209 0.29
31/03/2020 0 0 (71,443) (0.03) 583,766 0.26
Closing Balance as on 31/03/2020 0 0 0 0 583,766 0.26
6 ABU DHABI INVESTMENT AUTHORITY (Under different sub accounts)
05/04/2019 0 0 (146,110) (0.06) 3,224,408 1.42
12/04/2019 0 0 19,725 0.01 3,244,133 1.43
19/04/2019 0 0 42,574 0.02 3,286,707 1.45
26/04/2019 0 0 112,023 0.05 3,398,730 1.50
31/05/2019 0 0 (7,487) (0.00) 3,391,243 1.50
21/06/2019 0 0 266,926 0.12 3,658,169 1.61
28/06/2019 0 0 20 0.00 3,658,189 1.61
19/07/2019 0 0 (39,986) (0.02) 3,618,203 1.60
26/07/2019 0 0 (81,184) (0.04) 3,537,019 1.56
02/08/2019 0 0 87,337 0.04 3,624,356 1.60
30/08/2019 0 0 (4,789) (0.00) 3,619,567 1.60
13/09/2019 0 0 4,474 0.00 3,624,041 1.60
11/10/2019 0 0 (32,085) (0.01) 3,591,956 1.58
18/10/2019 0 0 (1,339) (0.00) 3,590,617 1.58
25/10/2019 0 0 (1,340) (0.00) 3,589,277 1.58
08/11/2019 0 0 12,301 0.01 3,601,578 1.59
15/11/2019 0 0 (262,763) (0.12) 3,338,815 1.47
22/11/2019 0 0 (248,451) (0.11) 3,090,364 1.36
29/11/2019 0 0 (24,400) (0.01) 3,065,964 1.35
17/01/2020 0 0 (329,507) (0.15) 2,736,457 1.21
24/01/2020 0 0 (114,913) (0.05) 2,621,544 1.16
31/01/2020 0 0 (12,352) (0.01) 2,609,192 1.15
07/02/2020 0 0 (317,315) (0.14) 2,291,877 1.01
14/02/2020 0 0 (4,300) (0.00) 2,287,577 1.01
21/02/2020 0 0 (2,850) (0.00) 2,284,727 1.01
28/02/2020 0 0 (11,580) (0.01) 2,273,147 1.00
06/03/2020 0 0 (85,320) (0.04) 2,187,827 0.96
27/03/2020 0 0 107,300 0.05 2,295,127 1.01
7 SMALLCAP WORLD FUND, INC
05/04/2019 0 0 1,874 0.00 3,180,934 1.40
12/04/2019 0 0 211 0.00 3,181,145 1.40
21/06/2019 0 0 (425,375) (0.19) 2,755,770 1.22
28/06/2019 0 0 (1,887,895) (0.83) 867,875 0.38
05/07/2019 0 0 (608,150) (0.27) 259,725 0.11
19/07/2019 0 0 (213,726) (0.09) 45,999 0.02
28/02/2020 0 0 436,268 0.19 482,267 0.21
06/03/2020 0 0 248,232 0.11 730,499 0.32
Closing Balance as on 31/03/2020 0 0 0 0 730,499 0.32
8 GOVERNMENT OF SINGAPORE
05/04/2019 0 0 (204,637) (0.09) 2,713,237 1.20
12/04/2019 0 0 79,903 0.04 2,793,140 1.23
03/05/2019 0 0 (10,073) (0.00) 2,783,067 1.23
10/05/2019 0 0 (18,615) (0.01) 2,764,452 1.22
17/05/2019 0 0 (2,035) (0.00) 2,762,417 1.22
24/05/2019 0 0 10,498 0.01 2,772,915 1.22

Annexure - II
31/05/2019 0 0 (70,095) (0.03) 2,702,820 1.19
07/06/2019 0 0 203,312 0.09 2,906,132 1.28
14/06/2019 0 0 21,418 0.01 2,927,550 1.29
05/07/2019 0 0 7,809 0.00 2,935,359 1.29
12/07/2019 0 0 21,638 0.01 2,956,997 1.30
19/07/2019 0 0 (1,593) (0.00) 2,955,404 1.30
26/07/2019 0 0 (7,470) (0.00) 2,947,934 1.30
02/08/2019 0 0 222,132 0.10 3,170,066 1.40
09/08/2019 0 0 (18,210) (0.01) 3,151,856 1.39
16/08/2019 0 0 (7,480) (0.00) 3,144,376 1.39
23/08/2019 0 0 (2,626) (0.00) 3,141,750 1.39
30/08/2019 0 0 (28,765) (0.01) 3,112,985 1.37
06/09/2019 0 0 (714) 0.00 3,112,271 1.37
13/09/2019 0 0 5,180 0.00 3,117,451 1.37
20/09/2019 0 0 4,934 0.00 3,122,385 1.38
30/09/2019 0 0 (1,413) (0.00) 3,120,972 1.38
04/10/2019 0 0 22,814 0.01 3,143,786 1.39
11/10/2019 0 0 26,023 0.01 3,169,809 1.40
18/10/2019 0 0 5,413 0.00 3,175,222 1.40
25/10/2019 0 0 (736) 0.00 3,174,486 1.40
01/11/2019 0 0 (1,448) (0.00) 3,173,038 1.40
08/11/2019 0 0 2,422 0.00 3,175,460 1.40
15/11/2019 0 0 55,551 0.02 3,231,011 1.42
22/11/2019 0 0 (599) 0.00 3,230,412 1.42
29/11/2019 0 0 (52,666) (0.02) 3,177,746 1.40
06/12/2019 0 0 (85,793) (0.04) 3,091,953 1.36
13/12/2019 0 0 (764) 0.00 3,091,189 1.36
20/12/2019 0 0 16,493 0.01 3,107,682 1.37
31/12/2019 0 0 (5,048) (0.00) 3,102,634 1.37
03/01/2020 0 0 (27,458) (0.01) 3,075,176 1.36
10/01/2020 0 0 (110,167) (0.05) 2,965,009 1.31
17/01/2020 0 0 (87,700) (0.04) 2,877,309 1.27
24/01/2020 0 0 (12,965) (0.01) 2,864,344 1.26
31/01/2020 0 0 (3,499) (0.00) 2,860,845 1.26
07/02/2020 0 0 (80,524) (0.04) 2,780,321 1.23
14/02/2020 0 0 16,503 0.01 2,796,824 1.23
21/02/2020 0 0 (1,415) (0.00) 2,795,409 1.23
28/02/2020 0 0 (376,993) (0.17) 2,418,416 1.07
06/03/2020 0 0 (705,129) (0.31) 1,713,287 0.76
13/03/2020 0 0 (88,661) (0.04) 1,624,626 0.72
20/03/2020 0 0 (145,985) (0.06) 1,478,641 0.65
31/03/2020 0 0 (7,008) (0.00) 1,471,633 0.65
9 GENERATION IM FUND PLC-GENERATION IM ASIA FUND
05/04/2019 0 0 64,799 0.03 2,965,398 1.31
21/06/2019 0 0 154,120 0.07 3,119,518 1.38
05/07/2019 0 0 33,247 0.02 3,152,765 1.39
26/07/2019 0 0 185,000 0.08 3,337,765 1.47
02/08/2019 0 0 158,900 0.07 3,496,665 1.54
04/10/2019 0 0 (334,654) (0.15) 3,162,011 1.39
03/01/2020 0 0 (151,715) (0.07) 3,010,296 1.33
28/02/2020 0 0 (275,978) (0.12) 2,734,318 1.21
20/03/2020 0 0 212,460 0.09 2,946,778 1.30
10 VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS
12/04/2019 0 0 6,233 0.00 2,710,579 1.20
10/05/2019 0 0 6,504 0.00 2,717,083 1.20
21/06/2019 0 0 (14,634) (0.01) 2,702,449 1.19

Annexure - II
(Contd.)
28/06/2019 0 0 (72,080) (0.03) 2,630,369 1.16
27/09/2019 0 0 (72,848) (0.03) 2,557,521 1.13
27/12/2019 0 0 (66,358) (0.03) 2,491,163 1.10
27/03/2020 0 0 (2,163) (0.00) 2,489,000 1.10
11 FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGING MARKETS OPPORTUNITIES FUND
10/05/2019 0 0 78,900 0.04 2,476,600 1.09
31/05/2019 0 0 31,600 0.01 2,508,200 1.11
14/06/2019 0 0 111,600 0.05 2,619,800 1.16
21/06/2019 0 0 648,698 0.29 3,268,498 1.44
05/07/2019 0 0 109,800 0.05 3,378,298 1.49
26/07/2019 0 0 (58,100) (0.03) 3,320,198 1.46
09/08/2019 0 0 210,000 0.09 3,530,198 1.56
16/08/2019 0 0 193,072 0.09 3,723,270 1.64
23/08/2019 0 0 54,000 0.02 3,777,270 1.67
27/09/2019 0 0 397,900 0.18 4,175,170 1.84
18/10/2019 0 0 68,400 0.03 4,243,570 1.87
08/11/2019 0 0 188,200 0.08 4,431,770 1.95
15/11/2019 0 0 16,200 0.01 4,447,970 1.96
22/11/2019 0 0 (41,000) (0.02) 4,406,970 1.94
20/12/2019 0 0 643,500 0.28 5,050,470 2.23
24/01/2020 0 0 (109,700) (0.05) 4,940,770 2.18
06/03/2020 0 0 238,300 0.11 5,179,070 2.28
13/03/2020 0 0 304,000 0.13 5,483,070 2.42
20/03/2020 0 0 597,400 0.26 6,080,470 2.68
27/03/2020 0 0 1,279,500 0.56 7,359,970 3.24
31/03/2020 0 0 3,206 0.00 7,363,176 3.25
Closing Balance as on 31/03/2020 0 0 7,363,176 3.25
12 T. ROWE PRICE NEW ASIA FUND
17/05/2019 0 0 112,651 0.05 2,250,074 0.99
31/05/2019 0 0 151,240 0.07 2,401,314 1.06
14/06/2019 0 0 94,242 0.04 2,495,556 1.10
21/06/2019 0 0 131,940 0.06 2,627,496 1.16
09/08/2019 0 0 130,509 0.06 2,758,005 1.22
23/08/2019 0 0 408,891 0.18 3,166,896 1.40
01/11/2019 0 0 144,681 0.06 3,311,577 1.46
15/11/2019 0 0 99,162 0.04 3,410,739 1.50
07/02/2020 0 0 (68,664) (0.03) 3,342,075 1.47
14/02/2020 0 0 (67,014) (0.03) 3,275,061 1.44
28/02/2020 0 0 165,319 0.07 3,440,380 1.52
13 MFS EMERGING MARKETS EQUITY FUND
05/04/2019 0 0 15,264 0.01 1,226,158 0.54
26/04/2019 0 0 8,339 0.00 1,234,497 0.54
03/05/2019 0 0 26,198 0.01 1,260,695 0.56
10/05/2019 0 0 19,959 0.01 1,280,654 0.56
17/05/2019 0 0 32,557 0.01 1,313,211 0.58
24/05/2019 0 0 39,224 0.02 1,352,435 0.60
07/06/2019 0 0 334,534 0.15 1,686,969 0.74
14/06/2019 0 0 156,615 0.07 1,843,584 0.81
21/06/2019 0 0 216,515 0.10 2,060,099 0.91
28/06/2019 0 0 272,803 0.12 2,332,902 1.03
05/07/2019 0 0 174,460 0.08 2,507,362 1.11
19/07/2019 0 0 23,194 0.01 2,530,556 1.12
09/08/2019 0 0 36,605 0.02 2,567,161 1.13
16/08/2019 0 0 84,039 0.04 2,651,200 1.17
23/08/2019 0 0 39,302 0.02 2,690,502 1.19

Annexure - II
30/08/2019 0 0 241,127 0.11 2,931,629 1.29
06/09/2019 0 0 28,715 0.01 2,960,344 1.31
13/09/2019 0 0 14,753 0.01 2,975,097 1.31
04/10/2019 0 0 22,219 0.01 2,997,316 1.32
11/10/2019 0 0 27,658 0.01 3,024,974 1.33
18/10/2019 0 0 11,907 0.01 3,036,881 1.34
01/11/2019 0 0 12,826 0.01 3,049,707 1.34
08/11/2019 0 0 16,465 0.01 3,066,172 1.35
22/11/2019 0 0 38,042 0.02 3,104,214 1.37
29/11/2019 0 0 15,015 0.01 3,119,229 1.38
06/12/2019 0 0 22,195 0.01 3,141,424 1.39
13/12/2019 0 0 20,235 0.01 3,161,659 1.39
27/12/2019 0 0 16,279 0.01 3,177,938 1.40
03/01/2020 0 0 (58,043) (0.03) 3,119,895 1.38
10/01/2020 0 0 14,823 0.01 3,134,718 1.38
17/01/2020 0 0 18,143 0.01 3,152,861 1.39
31/01/2020 0 0 97,411 0.04 3,250,272 1.43
07/02/2020 0 0 95,990 0.04 3,346,262 1.48
21/02/2020 0 0 31,760 0.01 3,378,022 1.49
28/02/2020 0 0 40,813 0.02 3,418,835 1.51
06/03/2020 0 0 (7,502) (0.00) 3,411,333 1.50
14 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND
26/04/2019 0 0 (30,299) (0.01) 2,581,268 1.14
17/05/2019 0 0 34,298 0.02 2,615,566 1.15
31/05/2019 0 0 38,356 0.02 2,653,922 1.17
16/08/2019 0 0 32,882 0.01 2,686,804 1.18
20/09/2019 0 0 27,397 0.01 2,714,201 1.20
10/01/2020 0 0 13,663 0.01 2,727,864 1.20
17/01/2020 0 0 25,666 0.01 2,753,530 1.21
28/02/2020 0 0 45,798 0.02 2,799,328 1.23
06/03/2020 0 0 22,449 0.01 2,821,777 1.24
20/03/2020 0 0 66,821 0.03 2,888,598 1.27
27/03/2020 0 0 34,444 0.02 2,923,042 1.29
15 INVESCO PERPETUAL FUND (Under different sub accounts)
Opening Balance as on 01/04/2019 0 0 0 0 0 0
19/07/2019 0 0 614,626 0.27 614,626 0.27
26/07/2019 0 0 877,165 0.39 1,491,791 0.66
02/08/2019 0 0 428,944 0.19 1,920,735 0.85
09/08/2019 0 0 121,464 0.05 2,042,199 0.90
23/08/2019 0 0 16,087 0.01 2,058,286 0.91
30/08/2019 0 0 15,550 0.01 2,073,836 0.91
06/09/2019 0 0 214,252 0.09 2,288,088 1.01
13/09/2019 0 0 120,100 0.05 2,408,188 1.06
20/09/2019 0 0 80,912 0.04 2,489,100 1.10
27/09/2019 0 0 200,211 0.09 2,689,311 1.19
04/10/2019 0 0 21,822 0.01 2,711,133 1.20
11/10/2019 0 0 267,878 0.12 2,979,011 1.31
25/10/2019 0 0 (92,140) (0.04) 2,886,871 1.27
22/11/2019 0 0 (56,578) (0.03) 2,830,293 1.25
06/12/2019 0 0 12,393 0.01 2,842,686 1.25
17/01/2020 0 0 49,311 0.02 2,891,997 1.28
14/02/2020 0 0 14,770 0.01 2,906,767 1.28
28/02/2020 0 0 (6,825) (0.00) 2,899,942 1.28
20/03/2020 0 0 (110,514) (0.05) 2,789,428 1.23
27/03/2020 0 0 78,939 0.04 2,868,367 1.26
31/03/2020 0 0 22,683 0.01 2,891,050 1.27

Annexure - II
(Contd.)
16 INVESTEC GLOBAL STRATEGY FUND - ASIAN EQUITY FUND
12/04/2019 0 0 219,464 0.10 2,921,676 1.29
19/04/2019 0 0 182,885 0.08 3,104,561 1.37
26/04/2019 0 0 507,361 0.22 3,611,922 1.59
21/06/2019 0 0 128,446 0.06 3,740,368 1.65
30/09/2019 0 0 (88,997) (0.04) 3,651,371 1.61
11/10/2019 0 0 (14,802) (0.01) 3,636,569 1.60
25/10/2019 0 0 (3,100) (0.00) 3,633,469 1.60
15/11/2019 0 0 130,817 0.06 3,764,286 1.66
29/11/2019 0 0 (105,129) (0.05) 3,659,157 1.61
20/12/2019 0 0 (31,582) (0.01) 3,627,575 1.60
27/12/2019 0 0 (89,731) (0.04) 3,537,844 1.56
31/12/2019 0 0 (22,684) (0.01) 3,515,160 1.55
17/01/2020 0 0 (35,363) (0.02) 3,479,797 1.53
21/02/2020 0 0 (63,063) (0.03) 3,416,734 1.51
28/02/2020 0 0 (53,270) (0.02) 3,363,464 1.48
06/03/2020 0 0 (50,898) (0.02) 3,312,566 1.46
13/03/2020 0 0 (65,430) (0.03) 3,247,136 1.43
20/03/2020 0 0 (381,999) (0.17) 2,865,137 1.26
27/03/2020 0 0 (105,531) (0.05) 2,759,606 1.22
ATTACHMENT (VII)
e) Shareholding of Directors and Key Managerial Personnel:
Sr. Name Shareholding at the beginning Changes during the year Cumulative Shareholding during
No. of the year (April 01, 2019) the year (March 31, 2020)
No. of % of total shares No. of % of total shares of No. of % of total shares of
Shares of the Company Shares the Company Shares the Company
1 Mr. Parag Sharma
PAN : ABDPS9129C
Opening Balance as on April 01, 2019 41,000 0.02 0 0 41,000 0.02
Closing Balance as on March 31, 2020 0 0 0 0 41,000 0.02
ATTACHMENT (VIII)
5. INDEBTENDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment as on March 31, 2020
(Rs. in lacs)
Particulars Secured Loans excluding Unsecured Deposits Total
deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 6,607,643.30 979,786.46 972,147.50 8,559,577.25
ii) Interest due but not paid(unclaimed) 692.09 1,349.02 2,574.44 4,615.56
iii) Interest accrued but not due 134,598.89 37,902.53 59,361.00 231,862.42
Total (i+ii+iii) 6,742,934.28 1,019,038.01 1,034,082.94 8,796,055.23
Change in Indebtedness during the financial year
• Addition 5,170,142.92 445,294.27 435,159.65 6,050,596.84
• Reduction 4,283,849.26 844,900.03 275,168.05 5,403,917.34
Net Change 886,293.66 -399,605.76 159,991.60 646,679.50
Indebtedness at the end of the financial year
i) Principal Amount 7,477,334.26 586,326.71 1,120,169.67 9,183,830.63
ii) Interest due but not paid (unclaimed) 483.60 3,072.61 2,004.89 5,561.10
iii) Interest accrued but not due 151,410.08 30,032.93 71,899.98 253,343.00
Total (i+ii+iii) 7,629,227.94 619,432.25 1,194,074.54 9,442,734.73
* Addition and reduction includes Interest

Annexure - II
ATTACHMENT (IX)
6. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a) Remuneration to Managing Director, Whole-time Directors and/or Manager
Sr. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount (in Rs.)
No. *Umesh Revankar – Managing Director
and CEO (in Rs.)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income- 96,66,667 96,66,667
tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0 0
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 0 0
2 Stock Option 0 0
3 Sweat Equity 0 0
4 Commission 0 0
- as % of profit 0 0
- others, specify... 0 0
5 Others, please specify
PF Contribution 7,20,000 7,20,000
NPS Contribution 6,00,000 6,00,000
Total (A) 1,09,86,667 1,09,86,667
Note-
Above figures do not include post retirement benefits.
(*)The Ceiling on remuneration of Managing Director and CEO as per Section 197 of the Companies Act, 2013 (the Act) is Rs. 1,71,87,62,294
i.e. 5% of the net profit computed as per Section 198 of the Act. Save and except the Managing Director no Whole-time Director or Manager is appointed.
ATTACHMENT (X)
b) Remuneration to Other Directors:
Particulars of Remuneration
Sr. Fee for attending board Commission Others, please specify Total Amount (in Rs.)
No. Particulars of Remuneration committee meetings Commission (in Rs.) (in Rs.)
1 Independent Directors
Mr. S Lakshminarayanan 4,15,000 7,50,000 Nil 11,65,000
Mrs. Kishori Udeshi 6,65,000 7,50,000 Nil 14,15,000
Mr. S. Sridhar 5,65,000 7,50,000 Nil 13,15,000
Mr.Pradeep Kumar Panja 6,65,000 7,50,000 Nil 14,15,000
Total (1) 23,10,000 30,00,000 Nil 53,10,000
2 Other Non-Executive Directors
Mr. D V Ravi Nil Nil Nil Nil
Mr. Puneet Bhatia Nil Nil Nil Nil
Mr. Gerrit Lodewyk Van Heerde
Nil Nil Nil Nil
(upto May 08, 2019)
Mr. Ignatius Michael Viljoen
Nil Nil Nil Nil
(w.e.f. May 14, 2019)
Total (2) Nil Nil Nil Nil
Total (B)=(1+2) Nil Nil Nil Nil
Total Managerial Remuneration 23,10,000 30,00,000 Nil 53,10,000
Note-
The ceiling on remuneration to Directors other than Managing Director, Whole-time Directors and/or Manager is Rs 34,37,52,459 i.e. 1% of the net profits
of the Company calculated as per Section 198 of the Act.
ATTACHMENT (XI)
c) REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD / MANAGER / WTD.
(in Rs.)
Sr. Particulars of Remuneration Key Managerial Personnel Total
no. Company Secretary CFO
Vivek M. Achwal Parag Sharma
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 46,54,408 57,03,600 1,03,58,008
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0 0 0
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 0 0 0
2 Stock Option 0 0 0
3 Sweat Equity 0 0 0

Annexure - II
(Contd.)
(in Rs.)
Sr. Particulars of Remuneration Key Managerial Personnel Total
no. Company Secretary CFO
Vivek M. Achwal Parag Sharma
4 Commission 0 0 0
- as % of profit 0 0 0
- others, specify... 0 0 0
5 Others, please specify 0 0 0
PF Contribution 1,62,000 3,24,000 4,86,000
NPS Contribution 1,35,000 2,70,000 4,05,000
Total 49,51,408 62,97,600 1,12,49,008
Note: Above figures do not include post retirement benefits

ATTACHMENT(XII)
7. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES
Type Section of the Brief Description Details of Penalty / Punishment/ Authority [RD / Appeal made, if any
Companies Act Compounding fees imposed NCLT / COURT] (give Details)
A. COMPANY
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
B. DIRECTORS
C. OTHER OFFICERS IN DEFAULT

S. Lakshminarayanan
New Delhi Chairman
June 10, 2020 (DIN: 02808698)

Annexure - III
Directors’ report
A. Details Pertaining to Remuneration as required under section 197(12) of the Companies

Act 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014
(i) (a) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company and
the percentage increase in remuneration of each Director for the Financial year 2019-20:-
Name of Independent Category *Remuneration *Remuneration % Increase in Ratio of Remuneration

Directors for FY 2018-19 for FY 2019-20 Remuneration of each Director to
( Rs. in crs) ( Rs. in crs) in FY 2019-20 Median Remuneration of
Employees
(i) (ii) (iii) (iv) (v)= (iv)- (iii) (vi)
Mr. S.Lakshminarayanan Non- Executive 0.08 0.08 - 2.48x
Chairman
Mr. S.M .Bafna Non- Executive 0.08 - @Not Applicable @Not Applicable
(upto March 31,2019)
Mr. Amitabh Chaudhry Non- Executive 0.04 - @Not Applicable @Not Applicable
(upto October 25, 2018)
Mrs. Kishori Udeshi Non- Executive 0.08 0.08 - 2.48x
Mr. S.Sridhar Non- Executive 0.08 0.08 - 2.48x
Mr. Pradeep Kumar Panja Non- Executive 0.03 0.08 @Not Applicable 2.48x
(w.e.f. October 25, 2018)
*Excludes Sitting fees. The Independent directors are entitled to Sitting fees and commission as per the statutory provisions and
within the limit approved by the Shareholders. The Non-executive Non-Independent Directors did not receive any remuneration
from the Company.
@ Mr. Pradeep Kumar Panja held the office w.e.f October 25, 2018, as such the details of percentage increase in his remuneration
in financial year 2019-20 is not given. Further Mr. Amitabh Chaudhry held the office upto October 25, 2018 and Mr. S. M. Bafna
held the office upto March 31, 2019, as such the details of percentage increase in their remuneration in financial year 2019-20 are
not given and for these reasons the ratio of their remuneration to the Median remuneration of employees is not given.
(b) The percentage increase in remuneration of Chief Executive Officer , Chief Financial Officer and Company Secretary in
the Financial year 2019-20:-
Name of KMP Category Remuneration Remuneration % Increase in Ratio of Remuneration

for FY 2018-19 for FY 2019-20 Remuneration of each Director to
( Rs. in crs) ( Rs. in crs) in FY 2019-20 Median Remuneration
of Employees
*Mr. Umesh Revankar Managing Director & CEO 0.63 1.10 74.58 36.38
Mr. Parag Sharma Chief Financial Officer 0.58 0.63 9.53 Not Applicable
Mr. Vivek Achwal Company Secretary 0.45 0.50 9.70 Not Applicable
* (The above figures do not include retirement benefits.)
(ii) In the Financial year 2019-20, there was an increase of 3.97% in the median remuneration of the employees
(iii) There were 28045 permanent employees on the role of Company as on March 31, 2020.
(iv) For employees other than Managerial Personnel who were in employment for whole of the Financial Year 2018-19 and
Financial Year 2019-20, the average increase was 21.19%. The average increase for Managerial Personnel was 9.37%. The
increase in the managerial remuneration is reasonable having regard to the performance, qualification and experience of the
managerial personnel and the same is in line with the industry standards/benchmark.
(v) It is hereby affirmed that the remuneration paid to the Directors, Key Managerial Persons and employees is as per the
Remuneration policy of the Company.

Annexure - III
(Contd.)
B. T
he Disclosure required as under Rule 5(2) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 :
Sr. Name of the Designation Remuneration Nature of Qualification and Date of Date of Age Last Relative
No Employee (Rs.in crs) Employment Experience Commencement Birth employment of any
of Employment director
1. Mr. Umesh Managing 1.16 Contractual Bachelor’s degree in business Director since October 55 years Shriram -
Revankar Director & management from Mangalore October 25, 27, 1964 Capital
CEO University and a master of 2016 Limited
business administration
(MBA) in finance. Attended
the Advanced Management
Program at Harvard Business
School. Has 33 years of
experience. For more details
refer Corporate Governance
Report.

S. Lakshminarayanan
New Delhi Chairman
June 10, 2020 (DIN: 02808698)

Annexure - IV
Directors’ report
Form No.MR-3
SECRETARIAL AUDIT REPORT

FINANCIAL YEAR ENDED 31st MARCH, 2020
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration
Personnel) Rules, 2014]
To
The Members
Shriram Transport Finance Company Limited
CIN: L65191TN1979PLC007874
Mookambika Complex, 3rd Floor
No: 4, Lady Desika Road, Mylapore
Chennai 600004
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by Shriram Transport Finance Company Limited (hereinafter called the company). Secretarial Audit was conducted
in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our
opinion thereon.
Based on my verification of Company’s books, papers, minute books, forms, statutory registers and returns filed and other records
maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives
during the conduct of secretarial audit, I hereby report that in my opinion, the company has during the audit period covering the
financial year ended on 31st March, 2020, complied with the statutory provisions listed hereunder and also that the Company
has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made
hereinafter.
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2020 according to the provisions of:
1) The Companies Act, 2013 (the Act) and the rules made there under;
2) The Securities Contracts(Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
3) The Depositories Act, 1996 and the Regulations and Bye-laws framed
4) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment.
5) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 ;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
d) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
e) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;
f) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
g) The Securities and Exchange Board of India(Buy-Back of Securities) Regulations,2018
6) Reserve Bank of India Act, 1934
7) Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016
8) Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016.
9) Master Direction - External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by
Authorised Dealers and Persons other than Authorised Dealers as amended.

Annexure - Iv
(Contd.)
10) Master Direction - Information Technology Framework for the NBFC Sector
11) Master Direction - Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016.
12) Master Direction - Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited;
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, etc.
mentioned above.
I further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors,
Independent Directors and Woman Director. The changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items
before the meeting and for meaningful participation at the meeting. All decisions were carried out with unanimous approval of
the Board and there was no instance of dissent voting by any member during the period under review.
I have examined the systems and processes of the Company in place to ensure the compliance with general laws like Labour
Laws, Employees Provident Funds Act, Employees State Insurance Act, considering and relying upon representations made by
the Company and its Officers for systems and mechanisms formed by the Company for compliance under these laws and other
applicable sector specific Acts, Laws, Rules and Regulations applicable to the Company and its observance by them.
there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor
and ensure compliance with other applicable laws on the operation of the Company and the rules made thereunder.
during the audit period apart from the instances mentioned hereunder, there were specific events / actions having major bearing
on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, etc.,
(i) Private Placement offer letter for secured and unsecured redeemable Non-Convertible Debentures pursuant to Section 42 of
the Companies Act, 2013 read with Rule 14(1) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.
(ii) Private Placement offer letter for Unsecured Redeemable Non-Convertible Subordinated Debt in the nature of Debentures
pursuant to Section 42 read with rule 14(1) of the Companies (Prospectus and Allotment of Securities) Rules 2014.
(iii) Major decisions taken by the members in pursuance to section 180 of the Companies Act, 2013.
(iv) Public issue of Secured Redeemable Non-convertible Debentures pursuant to the provisions of Securities and Exchange
Board of India (Issue and Listing of Debt Securities) Regulations, 2008, as amended (the “debt regulations”) read with the
companies Act, 2013 and the rules made thereunder.
(v) Buy back of Non convertible Debentures issued through Private Placement.
(vi) Major decisions taken by the members in pursuance to section 149 of the Companies Act, 2013 and Regulation 16(1)(b) and
17(1A) of SEBI (listing obligations and disclosure requirements) Regulations, 2015.
(P. Sriram)
Chennai P. Sriram & Associates
June 09, 2020 FCS No. 4862/C P No: 3310
UDIN : F004862B000333971
PEER REVIEW NO:S2011TN155200
This Report is to be read with my testimony of even date which is annexed as Annexure A and forms an integral part of this report.

Annexure - IV
Annexure A
To
The Members
My report of even date is to be read along with this supplementary testimony.

1. Maintenance of secretarial record is the responsibility of the management of the company. My responsibility is to express an
opinion on these secretarial records based on our audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. I believe that the processes and practices, the company had followed provide a reasonable basis for our
opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules and regulations and
happening of events etc.,
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. My examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the company.
(P. Sriram)
Chennai P. Sriram & Associates
June 09, 2020 FCS No. 4862/C P No: 3310
UDIN : F004862B000333971
PEER REVIEW NO:S2011TN155200

Annexure - v
Pijush Gupta & Co.

Chartered Accountants
GF – 17 Augusta Point,Golf Course Road, Sector – 53
Gurugram - 122002

Independent Auditor’s Certificate on Compliance with the Corporate Governance requirements under SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
To The Members Companies Act, 2013, in so far as applicable for the
Shriram Transport Finance Company Limited purpose of this certificate and as per the Guidance Note
on Reports or Certificates for Special Purposes issued by
1. This Certificate is issued in accordance with the terms of
the ICAI which requires that we comply with the ethical
our engagement letter dated June 28, 2019.
requirements of the Code of Ethics issued by the ICAI.
2. We have examined the compliance of conditions of
7. We have complied with the relevant applicable
Corporate Governance by Shriram Transport Finance
requirements of the Standard on Quality Control (SQC)
Company Limited (‘the Company’), for the year
1, Quality Control for Firms that Perform Audits and
ended on March 31, 2020, as stipulated in Regulations
Reviews of Historical Financial Information, and Other
17 to 27 and clauses (b) to (i) of regulation 46 (2) and
Assurance and Related Services Engagements issued by
paragraphs C, D and E of Schedule V of the SEBI (Listing
ICAI.
Obligations and Disclosure Requirements) Regulations,
2015 (“Listing Regulations”). Opinion
Management’s Responsibility 8. Based on our examination, as above, and to the best
of the information and explanations given to us and
3. The Management is responsible for ensuring that the
representations provided by the management, we certify
Company complies with the conditions of Corporate
that the Company has complied with the conditions
Governance. This responsibility also includes the
of Corporate Governance as stipulated in regulations
design, implementation and maintenance of internal
17 to 27 and clauses (b) to (i) of regulation 46 (2) and
controls and procedures to ensure compliance with the
paragraphs C, D and E of Schedule V of the Listing
conditions of the Corporate Governance stipulated in
Regulations during the year ended March 31, 2020.
the Listing Regulations.
9. We further state that such compliance is neither an
Auditor’s Responsibility assurance as to the future viability of the Company
4. Our responsibility is limited to examining the nor the efficiency or effectiveness with which the
procedures and implementation thereof, adopted by the management has conducted the affairs of the
Company for ensuring the compliance of the conditions Company.
of the Corporate Governance. It is neither an audit nor Restriction on Use
an expression of opinion on the financial statements of
10. The certificate is addressed and provided to the members
the Company.
of the Company solely for the purpose to enable the
5. We have examined the books of account and other Company to comply with the requirement of the Listing
relevant records and documents maintained by the Regulations, and it should not be used by any other person
Company for the purpose of providing reasonable or for any other purpose. Accordingly, we do not accept
assurance on the compliance with Corporate or assume any liability or any duty of care for any other
Governance requirements by the Company. purpose or to any other person to whom this certificate is
6. We conducted our examination in accordance with shown or into whose hands it may come without our prior
the Guidance Note on Certification of Corporate consent in writing. We have no responsibility to update
Governance issued by the Institute of the Chartered this Certificate for any events or circumstances occurring
Accountants of India (“ICAI”), the Standards on after the date of this Certificate.
Auditing specified under Section 143(10) of the
For Pijush Gupta & Co.

Chartered Accountants
ICAI Firm Registration No.309015E
Sangeeta Gupta
Partner
Membership No.:064225
UDIN: 20064225AAAABA3030
Gurugram
June 10, 2020

Report on
Corporate Governance
The Report for the financial year ended March 31, 2020 on of affairs of the Company to the Managing Director relating
compliance by the Company with the Corporate Governance to operational matters. The Board thus exercises close control
provisions as prescribed under the Securities and Exchange over the overall functioning of the Company with a view to
Board of India (Listing Obligations and Disclosure enhance the stakeholders value.
Requirements) Regulations, 2015 (“Listing Regulations”) is
The Independent Directors have made disclosures
given below.
confirming that there are no material, financial and/or
The Company’s philosophy on Corporate Governance commercial transactions between Independent Directors
is aimed at (a) enhancing long term shareholder value and the Company which could have potential conflict of
through assisting the top management in taking sound interest with the Company at large.
business decisions; and prudent financial management. (b)
achieving transparency and professionalism in all decisions BOARD MEETING AND PROCEDURES
and activities of the Company (c)achieving excellence in 1. The notes on Agenda setting out the business to be
Corporate Governance by conforming to the prevalent transacted at the Board Meeting , were sent to each
guidelines on Corporate Governance, and excelling in, Director seven days before the date of the Board Meeting.
wherever possible and reviewing periodically the existing The financial results were generally tabled at the Board
systems and controls for further improvements. meeting held as and when necessary. The Directors
were provided the facility of video conferencing to
BOARD OF DIRECTORS enable them to participate effectively in the Meeting(s),
The Company has put in place an internal governance as and when required. During the financial year the
structure. The Board of Directors of the Company consists Directors also passed some resolutions by circulation
of professionals from varied disciplines. The day to day on March 24,2020, March 30,2020 and March 31,2020
management of the affairs of the Company is entrusted for continued business affairs of the Company. The
with the senior management personnel, headed by the yearly calendar of the meetings is finalized before the
Managing Director and CEO, who functions under the beginning of the year.
overall supervision, direction and control of the Board of
During the year under review, six meetings of the Board
Directors (“the Board”) of the Company. The Board meets
of Directors were held on April 03, 2019, May 08, 2019,
regularly to discuss, review and decide upon the matters
June 27, 2019, July 24, 2019, October 24, 2019 and
such as policy formulation, setting up of goals, appraisal
February 03, 2020. The necessary quorum was present
of performances with the goals and control functions, etc.
for all the meetings.
. In order to facilitate the day-to-day operations, the Board
constitutes from time to time various committees and The maximum gap between any two meetings was
delegated necessary powers to the Committees. The Board not more than one hundred and twenty days. As
has also delegated certain powers of day-to-day management mandated by proviso under Regulation 17A(1) of the

Listing Regulations as of March 31, 2020, none of the necessary disclosures regarding Committee positions
Independent Directors of the Company served as an have been made by the Directors.
Independent Director in more than seven listed entities
The names and categories of Directors, their attendance
and as per Regulation 26 of Listing Regulations none
at Board Meetings held during the Financial Year and
of Directors is a member of more than ten Committees
at the last Annual General Meeting (AGM), number
or acting as Chairperson of more than five Committees
of Memberships/Chairmanships of Directors in
of the companies in which he/she is a Director. The
other Boards and Committees of Board, Category of
directorship and names of listed entities where person is a director are as follows:
COMPOSITION OF BOARD
The Company’s policy is to maintain an optimum combination of Executive and Non-Executive/Independent Directors. The
composition of Board of Directors is given in the table below and is in conformity with Regulation 17(1) of the Listing Regulations
and other applicable regulatory requirements.
Name of the Director and Category of No. of Whether Total no. Member-ships Chairmanships Category of director-
Directorship Board attended of Direc- in Audit / in Audit ship and Names of
Meetings the last torships Stakeholders / Stakeholders listed entities where
attended AGM held Relationship Relationship person is a director.
during the on June 27, Committee Committee
F.Y. 2020 2019
Mr. S Lakshminarayanan 5 Yes 3 1 1 Nil
Chairman
Non-Executive Independent Director,
DIN: 02808698
Mr. Umesh Revankar 6 Yes 5 3 0 NIL
Executive,
Managing Director & CEO,
DIN: 00141189
At the 40th AGM held on June 27, 2019, the
shareholders of our Company have approved
re-appointment for a period of five years
w.e.f. October 26, 2019.
Mr. Puneet Bhatia 3 No 7 1 0 Non-executive Non
Non-Executive Non-Independent Director, Independent director
DIN: 00143973 i) Havells India Limited
Mrs. Kishori Jayendra Udeshi 6 Yes 7 4 0 Non-executive
Non-Executive Independent Director, Independent Director
DIN: 01344073 (i) ION Exchange (India)
Ltd.
(ii) HALDYN Glass Ltd. ;
(iii) Thomas Cook (india)
Ltd.;
(iv) ELANTAS Beck India
Limited
*Mr. Gerrit Lodewyk Van Heerde, 2 N.A.* * * * *
Non-Executive Non-Independent Director,
DIN: 06870337
**Mr. Ignatius Michael Viljoen , 5 No 1 0 0 Non-executive Non
Non-Executive and Non-Independent Director Independent director
DIN: 08452443 i) S hriram City Union
Finance Limited

CORPORATE GOVERNANCE report
Name of the Director and Category of No. of Whether Total no. Member-ships Chairmanships Category of director-
Directorship Board attended of Direc- in Audit / in Audit ship and Names of
Meetings the last torships Stakeholders / Stakeholders listed entities where
attended AGM held Relationship Relationship person is a director.
during the on June 27, Committee Committee
F.Y. 2020 2019
Mr. Sridhar Srinivasan 6 Yes 7 1 4 Non-executive
Non-Executive Independent Director, Independent director
DIN: 00004272 i) Jubilant Life
Sciences Limited
ii) Strides Pharma
Science Limited
iii) DCB Bank
Limited
Mr. D. V. Ravi 3 Yes 5 2 0 Non-executive Non
Non-Executive Non-Independent Director, Independent director
DIN: 00171603 i) Take Solutions
Limited
Mr. Pradeep Kumar Panja 6 Yes 6 3 2 Non-executive
Non-Executive Independent Director, Independent director
DIN: 03614568 i) Omax Autos
Limited
ii) Trigyn
Technologies
Limited
iii) Brigade
Enterprises
Limited
Notes:
1. In the above table, the total number of Directorships of a Director excludes his/her Directorships in the Company, Section 8 Company, Private
Limited Companies and Foreign Companies.
2. The Memberships and Chairmanships of Directors in Committees do not include their Memberships and Chairmanships in the Company.
3. None of the above Directors are related inter- se.
4. Non-Executive Directors of the Company do not hold any shares and convertible instruments in the Company.
5. * Mr. Gerrit Lodewyk Van Heerde, Non-Executive Non-Independent Director resigned from the directorship of the Company with effect from
May 09, 2019 due to work commitments.
6 ** The Board of Directors appointed Mr. Ignatius Michael Viljoen as a Non-Executive Non- Independent Director of the Company w.e.f May 14,
2019.
A chart or a matrix setting out the skills/expertise/competence of the Board of Directors Pursuant to Regulation 34(3) read with Schedule V Part (C)
(2)(h)(ii) of Listing Regulations the Board of Directors has identified the following the requisite skills/expertise and competencies for the effective
functioning of the Company which are currently available with the Board.
Sr. Name of the Director & Designation Core skills/expertise/competencies

No.
1 Mr. S Lakshminarayanan Member of Indian Administrative Service (retired) held various senior positions
Chairman, Independent Director in government departments including Secretary in Ministry of Home Affairs.
Wide experience in the fields of administration and public relations.
2 Mr. Umesh Revankar Holds a Bachelor’s degree in Business Management from Mangalore University
Managing Director & CEO and MBA in finance. Extensive experience in the financial services business of
companies in Shriram Group, expert and in-depth knowledge and specialization
in commercial vehicle financing, business development.

3 Mrs. Kishori Jayendra Udeshi Holds Master’s degree in Economics from Bombay University. Wide experience
Independent Director in banking, non-banking sector, financial sector and regulatory matters. Retired
as a Deputy Governor of Reserve Bank of India (RBI). Represented RBI on
the core Principles Liaison Group and the Core Principles Working Group on
Capital, of the Basel Committee on Banking Supervision. As Deputy Governor
of RBI, she was on the Board of SEBI, NABARD, Exim Bank and was the
Chairperson of Bharatiya Reserve Bank Note Mudran (Pvt.) Ltd., Bangalore as
also Chairperson of the Deposit Insurance and Credit Guarantee Corporation.
Director of the Security Printing & Minting Corporation of India Limited. from
28/2/2007 to 26/6/2013. She was also a member of the court of governors of
the Administrative Staff College, Hyderabad. In 2013 the Government of India
appointed her as a member Financial Sector Legislative Reforms Commission
chaired by Justice Shri Krishna.
4 Mr. Sridhar Srinivasan Holds a degree from IIT-Delhi and Management Studies from Jamnalal Bajaj
Independent Director Institute. Wide and rich experience as Banker for more than four decades in
Commercial and Development Banking.
Retired as Chairman and Managing Director of Central Bank of India.
An innovative, market oriented banker with about 46 years’ experience in
commercial and development banking of which more than 10 years as Executive
Director/CEO at Board level. Strategic thinker having provided transformational
leadership to the organisations worked for.
5 Mr. Pradeep Kumar Panja Holds Master’s Degree in Science (Statistics) from the University of Madras. Rich
Independent Director experience in various areas of banking including corporate and international
banking, treasury management, information technology, strategic planning,
business development, risk management.
Retired as Managing Director of State Bank of India, India’s largest Bank and
ranked 55th internationally. A Career banker with State Bank of India and gained
about 4 decades of rich experience of which more than 5 years was at Board
level. He had exposure to all facets of Banking including Risk Management,
Corporate Governance principles and practices.
Currently, Member of Banks Board Bureau constituted by GOI- one of the key
roles is to advise the Banks on CG Practices.
6 Mr. Puneet Bhatia Holds a Bachelor’s degree in Commerce and MBA from IIM – Calcutta. Wide
Non-Executive and experience in the field of finance and worked with one of the first private equity
Non-Independent Director firm to invest in Asia as Managing Director and Country Head
7 Mr. D. V. Ravi Holds a Bachelor’s degree in Commerce from University of Bangalore and
Non-Executive and Post-graduate degree in Management from the Institute of Rural Management,
Non-Independent Director Anand. Wide experience in the areas of corporate strategy and services,
corporate finance, IT and process activities of Shriram Group.
8 Mr. Ignatius Michael Viljoen Holds a Master’s degree in Economics with distinction from the University
Non-Executive and Non-Independent of the Free State, South Africa. Experience in credit risk and credit portfolio
(w.e.f. May 14, 2019) management across the various entities owned by the Sanlam Group outside of
the Republic of South Africa.
The brief profiles of Directors are also available on the website of the Company https://www.stfc.in/about-us/board-of-director/
Pursuant to Clause C(2)(i) of Schedule V read with Regulation 34(3) of Listing Regulations, in the opinion of the Board the
independent directors fulfill the conditions as specified in the Listing Regulations and are independent of the management.

MEETING OF INDEPENDENT DIRECTORS COMMITTEES OF DIRECTORS

The Company’s Independent Directors met on February AUDIT COMMITTEE
03, 2020 without the presence of Executive Directors or The Audit Committee of the Company is constituted in line
members of management. The meeting was attended with the provisions of Section 177 of the Companies Act
by all the Independent Directors. In the meeting, the 2013 (‘the Act’) and Regulation 18 read with Part C of the
Independent Directors reviewed performance of Non- Schedule II of the Listing Regulations. All the members of
the Committee have wide experience in fields of Banking
Independent Directors, Board as a whole, Chairman and
& Finance, Accounts, Regulatory and Financial service
every Independent Directors. The Directors were evaluated industry.
on parameters such as functioning of the Board, frequency
Terms of reference
of meetings of the board and committees of directors, level
of participation of directors at the board and committee The terms of reference of the Audit Committee, inter alia
includes:
meetings, independence of judgments, performance of
duties and obligations by directors, implementation of 1. Overseeing the financial reporting process.
good corporate governance, safeguarding the interest of all
2. To ensure proper disclosure in the Quarterly, Half yearly
other stakeholders. They assessed the quality, quantity and
and Annual Financial Statements. To recommend
timeliness of flow of information between the Company
appointment, re-appointment of auditors, fixing of their
Management and the Board. The Independent Directors
remuneration and approval of payment to auditors for
were highly satisfied with the overall functioning of the
any other services rendered by them.
Board ,its various Committees and with the performance of
other Executive and Non-Executive directors. 3. Reviewing, with the management, the Financial
Statements before submission to the Board.
FAMILIARIZATION PROGRAMME
4. Reviewing the adequacy of internal audit function.
Pursuant to Regulation 25(7) of the Listing Regulations,
the Company has put in place a system to familiarize its 5. Reviewing the findings of any internal examinations
Independent Directors about the Company, its financial by the internal auditors into matters where there is
products, the industry and business model of the Company. suspected fraud or irregularity or a failure of internal
In addition, the Company also updates on continuous basis control systems of a material nature and reporting the
to the Independent Directors about the ongoing events matter to the Board.
and developments relating to the Company, significant 6. Discussing with statutory auditors before the audit
changes in regulatory environment and risk management commences, about the nature and scope of audit as
framework through the Board/Committee meetings and well as post-audit discussion to ascertain any area of
separate familiarisation programme(s). During the Financial concern.
Year 2019-20 the Company had conducted 7 programmes
/ meetings and the time spent by Independent Directors 7. To discuss with the management, the senior internal
was in the range of 5-7 hours. The cumulative programmes audit executives and the auditor/s the Company’s major
/ meetings conducted till date were 33 and the time spent risk exposures, guidelines and policies.
by Independent Directors was in the range of 27-29 hours. 8. To review the functioning of the Whistle Blower
Pursuant to Regulation 46 of Listing Regulations the details Mechanism.
of Familiarization Programme is uploaded on the Company’s
9. Approval of appointment of CFO (i.e., the Whole Time
website at the web link: https://bit.ly/30qWhR9
Finance Director or any other person heading the
POLICY FOR PROHIBITION OF INSIDER TRADING finance function or discharging that function) after
assessing the qualifications, experience & background
Pursuant to SEBI (Prohibition of Insider Trading)
etc. of the candidate.
Regulations 2015, as amended, the Company has adopted
Prohibition of Insider Trading Code and a Code of Practices 10. Review and monitor the Auditor’s independence,
and Procedures for Fair Disclosure of Unpublished Price performance and effectiveness of audit process.
Sensitive Information. 11. Approval or any subsequent modification of
The Code also provides for pre-clearance of transactions by transactions of the Company with related parties and
designated persons. granting omnibus approval to related party transactions
which are in the ordinary course of business and on
an arm’s length basis and to review and approve such
transactions.

12. Scrutiny of inter-corporate loans and investments. Name of the Member Status No. of Meetings
13. Valuation of undertakings or assets of the Company, Attended
Mrs. Kishori Udeshi Chairperson 3
wherever it is necessary.
Mr. S. Lakshminarayanan Member 3
14. To review the Financial Statements, in particular, the Mr. Pradeep Kumar Panja Member 3
investments made by the Unlisted Subsidiary Company. Mr. Puneet Bhatia Member 2
Carrying out any other function as is mentioned in the CRITERIA FOR PERFORMANCE EVALUATION OF
terms of reference of the Audit Committee. INDEPENDENT DIRECTORS
The Company has an Internal Audit Department which The criteria and manner for evaluation of performance
is headed by a qualified Chartered Accountant, who is of Independent Directors provide certain parameters like
responsible for conducting independent Internal Audit. The commitment to the Company’s vision, level of participation
Internal Auditor reports directly to the Audit Committee of at Board/Committee Meeting, level of engagement and
the Board. The Committee also invites the representatives of contribution, Independence of judgment, understanding
strategic shareholder to attend the Audit Committee Meeting. duties, responsibilities, qualifications, disqualifications and
During the year under review, five meetings were held on liabilities as an independent director, up-to-date knowledge /
May 08, 2019, July 18, 2019, July 24, 2019, October 24, 2019 information pertaining to business of the Company in which
and February 03, 2020. The maximum gap between any two the Company is engaged in, implementation of good corporate
meetings was not more than one hundred and twenty days. governance practices, enhancing long term shareholders’ value,
The necessary quorum was present for all the meetings. professional approach, providing guidance and counsel to senior
management in strategic matters and rendering independent
Composition
and unbiased opinion at the meetings etc., review complaince
Name of the Member Status No. of Meetings
Attended reports on applicable laws, regulations and guidelines.
Mr. S. Sridhar Chairman 5 The Board completed the performance evaluation of directors
Mrs. Kishori Udeshi Member 5
Mr. Pradeep Kumar Panja Member 5 as per requirement of law and made a few observations.
Mr. Puneet Bhatia Member 2 The Independent directors fulfilled the requirement of
independence as laid down in the Act and Listing Regulations
The Company Secretary acts as the Secretary for the Audit
and are independent of management.
Committee. The Statutory Auditors, Internal Auditor, the
Managing Director & CEO, the Chief Financial Officer, the REMUNERATION OF INDEPENDENT DIRECTORS
Head of Accounts Department of the Company and other The Company is being benefited from the expertise, advice and
invitees also attend the meeting. inputs provided by the Independent Directors. The Independent
Directors devote their valuable time in deliberating on the
NOMINATION AND REMUNERATION COMMITTEE
strategic and critical issues in the course of the Board and
The Nomination and Remuneration Committee (NRC) Committee meetings of the Company and give their valuable
has been constituted by the Board as per the requirements advice, suggestion and guidance to the management of the
of the provisions of Section 178 of the Act and Regulation Company from time to time. Independent Directors of the
19 read with Part D of the Schedule II of the Listing
Company are paid sitting fees Rs. 50,000/-for every meeting
Regulations.
of Board, Rs. 25,000/- for every Committee meeting and Rs
Terms of reference 15,000/- for every meeting of Independent Directors attended
The terms of reference of the NRC, is uploaded on the by them. No sitting fees are paid to Non-Independent Directors.
Company’s website at the weblink https://bit.ly/2DQlAVb. Equal commission is being paid to all Independent Directors.
During the year, the Committee met three times on April 03, The shareholders of the Company in their 38th Annual General
2019, May 08, 2019 and February 03, 2020. The necessary Meeting held on June 29, 2017 have approved payment of
quorum was present for all the meetings. commission to Independent Directors subject to the statutory
Composition limits. The amount of commission for every financial year is
decided by the Board of Directors.

REMUNERATION OF MANAGING DIRECTOR AND CEO:

Refer Remuneration Policy uploaded on the Company’s website https://bit.ly/2DQlAVb.
The details of sitting fees/remuneration paid to the Directors during the year 2019- 2020 are as under:
Sitting Fees Salary, Commission
Sr. for attending Perquisites & (to be paid)
No. Name of the Director Meetings (Rs.) ESOS (Rs.) (Rs.) Total (Rs.)
1 Mr. S. Lakshminarayanan (Chairman) 4,15,000 - 7,50,000 11,15,000
2 Mr. Umesh Revankar (Managing Director and CEO)* - 1,09,86,667 - 1,09,86,667
3 Mr. Puneet Bhatia - - - -
4 Mrs. Kishori Udeshi 6,65,000 - 7,50,000 14,15,000
5 Mr. Pradeep Kumar Panja 6,65,000 - 7,50,000 14,15,000
6 Mr. Gerrit Lodewyk Van Heerde (up to May 08, 2019) - - - -
7 Mr. Ignatius Michael Viljoen (w.e.f May 14, 2019) - - - -
8 Mr. Sridhar Srinivasan 5,65,000 - 7,50,000 13,15,000
9 Mr. D. V. Ravi - - - -
GST on sitting fees paid to the Directors (50% Portion) 2,07,900 - - 2,07,900
Notes:
* For further details kindly refer paragraph titled ‘Composition of Board’ forming part of this report.
Mr. Umesh Revankar is appointed as the Managing Director and CEO of the Company for a period of 3 years with effect from
October 26, 2016. His remuneration includes salary of Rs. 96,66,667, contribution to Provident Fund and NPS is Rs. 7,20,000 and
Rs 6,00,000 respectively. The appointment may be terminated by giving three months’ notice in writing or salary in lieu thereof.
No severance fees are payable on termination of employment.
The Managing Director proposed to forego his annual increment in his salary for the Financial year 2020-21 and the variable
pay in the light of COVID-19 led exigencies. His proposal was accepted by the NRC Committee. The annual increment of the
Managing Director is decided by the NRC Committee and the Board of Directors based on the performance evaluation of the
Managing Director. The performance of the Managing Director for the financial year ended 31st March 2020 was found as
excellent by the Board of Directors.
STAKEHOLDERS RELATIONSHIP COMMITTEE 4. Taking decision on waiver of requirement of obtaining

The “Stakeholders’ Relationship Committee” is constituted in the Succession Certificate/Probate of Will on case to
line with the provisions of Section 178 (5) of the Companies case basis within the parameters set out by the Board of
Act, 2013 and Regulation 20 of Listing Regulations. Directors.
5. To monitor transfer of the amounts/shares transferable
Terms of reference
to Investor Education and Protection Fund.
The Committee is responsible for assisting the Board of
6. To list the securities of the Company on Stock Exchanges.
Directors in the Board’s overall responsibilities relating to
attending and redressal of the grievances of the security 7. Review of measures taken for effective exercise of voting
holders of the Company. rights by shareholders.
8. Review of adherence to the service standards adopted
The Committee in particular looks into:
by the listed entity in respect of various services being
rendered by the Registrar and Share Transfer Agent.
1. To oversee and reviews redressal of shareholder and
9. Review of the various measures and initiatives taken by
investor grievances, on matters relating to transfer /
the listed entity for reducing the quantum of unclaimed
transmission of securities, non-receipt of annual report,
dividends and ensuring timely receipt of dividend
non-receipt of declared dividends/interests.
warrants / annual reports / statutory notices by the
2. To issue duplicate share/debenture certificate(s) shareholder of the Company.
reported lost, defaced or destroyed as per the laid down
10. Any other matters that can facilitate better investor
procedure and to resolve the grievances of security
services and relations.
holders of the Company.
During the year, the Committee met two times on May 08,
3. Attending to complaints of security holders routed by
2019 and October 24, 2019. The necessary quorum was
SEBI (SCORES)/Stock Exchanges/RBI or any other
present for all the meetings.
Regulatory Authorities.

Composition Terms of reference
Name of the Member Status No. of Meetings The terms of reference of the CSR Committee broadly
Attended comprises of:
Mr. S. Lakshminarayanan Chairman 1 1. Formulating and recommending to the Board of
Mr. Umesh Revankar Member 2 Directors the CSR Policy and monitoring the same from
Mr. Pradeep Kumar Panja Member 2 time to time.
Note: Mr. Vivek Achwal, Company Secretary also acts as the 2. The Committee will review and evaluate the
Compliance Officer of the Company. sustainability agenda, suggest modifications, discuss
and recommend action plan to take the CSR activities
The status of security holders grievances is monitored forward.
by the Committee periodically and the minutes of the
3. CSR Committee will monitor the spend on CSR
Committee are made available to the Board.
activities by the Company as well as ensure that the
Company spends at least the minimum sum as may be
SECURITY HOLDERS COMPLAINTS:
prescribed from time to time pursuant to the Act and
Particulars No. of Complaints Companies (Corporate Social Responsibility Policy)
Equity Fixed Non- Rules, 2014 or such higher sum as may be decided by
Deposit Convertible the Board of Directors of the Company.
Debentures 4. Review of Company’s Business Responsibility Policy
Complaints pending as 1 Nil Nil from time to time.
on April 1, 2019
5. Approval of Business Responsibility Report for every
Complaints received 8 1 10
financial year.
during the period April
01, 2019 to March 6. Any other matter as may be necessary for implementation
31,2020. of Business Responsibility Policy.
Complaints identified 8 1 10 During the year under review, the Committee met three
and reported under times on May 08, 2019 October 24, 2019 and January 28,
Regulation 13(3) of SEBI 2020. The necessary quorum was present for all the meetings.
(LODR) Reg. 2015.
Complaints disposed of 9 1 10 Composition
during the year ended Name of the Member Status No. of Meetings
March 31,2020. Attended
Complaints unresolved as Nil Nil Nil Mr. Umesh Revankar Chairman 3
of March 31, 2020. Mr. S. Lakshminarayanan Member 2
All the complaints received from investors were attended within Mrs. Kishori Udeshi Member 3
Mr. Puneet Bhatia Member 1
30 days. SEBI Complaints Redress System (SCORES) SEBI
Mr. Pradeep Kumar Panja Member 3
administers a centralised web-based complaints redress system
(SCORES). It enables investors to lodge and follow up complaints
and track the status of online redressal. All the activities starting RISK MANAGEMENT COMMITTEE
from lodging of a complaint till its disposal are carried online The Risk Management Committee has been constituted
in an automated environment and the status of every complaint in line with the Regulation 21 of Listing Regulations as
can be viewed online at any time. The salient features of this amended.
system are: Centralised database of all complaints, online upload The terms of reference of the Risk Management Committee
of Action Taken Reports (ATRs) by concerned companies and shall be as follows:
online viewing by investors of actions taken on the complaint
and its current status. The Company has registered itself on 1. Review of Risk Management Policy.
SCORES and endeavours to resolve all investor complaints 2. Approval of Risk Management Plan, implementing and
received through SCORES within the stipulated period of monitoring the Risk Management Plan.
receipt of the complaint. During the year, the Company received 3. Roll out and implementation of the Risk Management
16 investor complaints through SCORES, all of which were System.
resolved within 30 days of their receipt.
4. Such other matters as may be delegated by Board from
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE time to time.
The Corporate Social Responsibility (CSR) Committee has During the year under review, the Committee met four times
been constituted in line with the provisions of Section 135 of on May 17, 2019, October 24, 2019 and January 28, 2020 and
the Act and the rules made thereunder. The Committee also March 30, 2020. The necessary quorum was present for all the
monitors implementation of Business Responsibility Policy meetings.
of the Company.

Composition 7. Availing Foreign Currency Term Loan, FCNR (B).

Name of the Member Status No. of Meetings 8. Investment of Surplus funds in Fixed Deposit for Short
Attended Term/ Mutual Funds etc.
Mr. Umesh Revankar Chairman 4 9. Monitoring asset coverage of the loan and issuance of
Mr. D. V. Ravi Member 3
NOC and release of security.
Mr. S. Sridhar (w.e.f Member 3
10. Give confirmation to Bank in respect of loans availed
October 24, 2019) through Acknowledgement of Debt.
Mr. S. Sunder Member 3
11. Apply for any license/Affiliation for business purpose.
ASSET LIABILITY MANAGEMENT COMMITTEE 12. Entering into Service Provider Agreement for Electronic
Terms of reference Toll collection programme.
The terms of reference of Asset Liability Management 13. To authorise official of the Company to appear on behalf of
Committee (ALM) are as follows: the Company before various regulatory and law enforcing
authorities/government department/local administration
The ALM Committee is responsible for assisting the
or authority/market intermediaries under applicable laws,
Board of Directors in Balance Sheet planning from risk-
rules and regulations and submit documents undertaking,
return perspective including the strategic management of
affidavits, papers etc.
interest and liquidity risk. Its function includes –
14. To authorize official of the Company to sign various
1. Liquidity risk management.
agreements in connection with purchase/sale registration
2. Management of market risks. of property etc.
3. Funding and capital planning. 15. Fixing Record Date for payment of monthly, half yearly
and annual Interest and redemption of Debentures/Bonds/
4. Profit planning and growth projection. Notes.
5. Forecasting and analysing future business, 16. Revision in Terms and Conditions including interest rates
environment and preparation of contingency plans. of Fixed Deposit Scheme;
During the year under review, the Committee met four 17. Availing ‘Corporate Internet Banking’, Payment &
times on April 26, 2019, July 24, 2019, October 24, 2019 Collection Services, online viewing facility, E-commerce
and February 03, 2020. The necessary quorum was –payment gateway Merchant Account from Banks.
present for all the meetings.
18. Authorization to procure Digital Signature Certificates
Composition from e Mudhra Limited/NSEIT Limited.
Name of the Member Status No. of Meetings 19. Authorization to create the Login ID with CERSAI
Attended (Central Registry of Securitisation Asset Reconstruction
Mr. Umesh Revankar Chairman 4 and Security Interest of India).
Mrs. Kishori Udeshi Member 3
20. To give approval/authorization for the matters required for
Mr. Parag Sharma Member 4
day to day management of the affairs of the Company.
BANKING AND FINANCE COMMITTEE The Committee meets regularly to discharge its functions.
During the year under review, the Committee met 83 times.
The Banking and Finance Committee has been formed to
The necessary quorum was present for all the meetings.
monitor resource mobilisation and to ensure efficient and
timely decisions on the matters relating to Banking and Composition
Finance activities of our Company. Name of the Member Status No. of Meetings
Terms of reference Attended
Mr. Umesh Revankar Chairman 75
The terms of reference of the Banking and Finance Mr. Parag Sharma Member 79
Committee comprises of: Mr. S. Sunder Member 77
1. Opening, operating and closing of Bank Accounts. IT Strategy Committee
2. Issuance of Non-Convertible Debentures/Subordinated Terms of reference
Debentures on Private Placement basis. The terms of reference of the IT Strategy Committee shall
3. Issuance of Commercial Paper. include:
4. Borrowing of money from Bank, Financial Institutions etc. 1. Approving IT strategy and policy documents and
and proving Bank Guarantee. ensuring that the management has put an effective
strategic planning process in place;
5. Securitization of receivables by way of sell down through
PTC/ Direct Assignment. 2. Ascertaining that management has implemented
processes and practices that ensure that the IT delivers
6. Availing and giving Inter Corporate Deposit. value to the business;

3. Ensuring IT investments represent a balance of risks During the year under review, the Committee met two times
and benefits and that budgets are acceptable; on July 08, 2019 and January 3, 2020. The necessary quorum
4. Monitoring the method that management uses to was present for all the meetings.
determine the IT resources needed to achieve strategic Composition
goals and provide high-level direction for sourcing and Name of the Member Status No. of Meetings
use of IT resources;
Attended
5. Ensuring proper balance of IT investments for Mr. S. Sridhar Chairman 2
sustaining NBFC’s growth and becoming aware about Mr. Umesh Revankar Member 2
exposure towards IT risks and controls, Mr. Gayadhar Behera Member 2
6. Any other role and responsibility as per the directions of Mr. Balasundar Rao Member 2
RBI issued from time to time.
GENERAL BODY MEETING

(i) Annual General Meeting (AGM):
Details of the last three Annual General Meetings (AGM) and Special Resolutions passed thereat are given below:
Year AGM Location Date & Time Details of Special Resolutions passed
2016-17 38th AGM Narada Gana Sabha June 29, 2017 (i) To borrow monies for the purpose of the business of
(Main Hall), No.314, at 11.00 A.M Company under Section 180(1)(c) and other applicable
TTK Road, Alwarpet, provisions, if any, of the Act,
Chennai - 600 018 (ii) Creation of security in connection with borrowings
under Section 180(1)(a) and other applicable provisions,
if any, of the Act and
(iii) Issue of Non-Convertible Debentures under Section 42
of the Act on private placement basis.
2017-18 39th AGM Narada Gana Sabha July 26, 2018 There were no Special Resolutions passed at the 39th AGM.
(Main Hall), No.314, at 11.00 A.M
TTK Road, Alwarpet,
Chennai - 600 018
2018-19 40th AGM Narada Gana Sabha June 27, 2019 (i) To re-appoint Mr. S. Lakshminarayanan (DIN 02808698)
(Main Hall), No.314, at 10.30 A.M as an Independent Director of the Company for a second
TTK Road, Alwarpet, term of five consecutive years commencing from January
Chennai - 600 018 24, 2020 to January 23, 2025 and
(ii) To re-appoint Mr. S. Sridhar (DIN 00004272) as an
Independent Director of the Company for a second term
of five consecutive years commencing from October 20,
2019 to October 19, 2024.
At the ensuing 41st AGM to be held on Wednesday August 19, 2020, three special resolutions are proposed namely, (i) to enhance
the limit to sell/ assign/ securitize receivables, (ii) to approve conversion of loan into equity or other capital of the Company in
case of Event of Default and (iii) to authorize capital raising through issuance of Equity Shares and/or other Eligible Securities.
Postal Ballot
The Company had passed three special resolutions through postal ballot notice dated May 08, 2019 namely:
(i) Enhancement of limits of borrowing by the Board pursuant to Section 180(1)(c) and other applicable provisions, if any, of the
Companies Act, 2013,
(ii) Enhancement of limits for creation of security by the Board in connection with borrowing pursuant to Section 180(1)(a) and other
applicable provisions, if any, of the Companies Act, 2013 and
(iii) Renewal of limit to issue debentures on private placement basis by the Board pursuant to Section 42, Section 71 and other applicable
provisions of the Companies Act, 2013.
The Board of Directors on May 08, 2019 had appointed Mr. P. Sriram (Membership No. FCS 4862), a Practicing Company Secretary
(PCS No. 3310), Chennai as the scrutinizer to scrutinize the E-voting/Postal Ballot process in a fair and transparent manner. The
results were declared on June 13, 2019. The details of voting pattern of the Special Resolution passed through Postal Ballot:

(i) Enhancement of limits of borrowing by the Board:

Particulars Total No. of Votes Assenting % of Votes Cast Votes Dissenting % of Votes
Valid Votes the Resolution the Resolution Cast
Votes cast through 177518267 175380508 98.79 2137759 1.20
Electronic Mode
Physical Mode
Total 177535411 175397652 98.80 2137759 1.20
Special Resolution was passed by shareholders with requisite majority.
(ii) Enhancement of limits for creation of security by the Board in connection with borrowing:
Electronic Mode
Physical Mode
Total 177535411 175397651 98.80 2137760 1.20
(iii) Renewal of limit to issue debentures on private placement basis by the Board
Electronic Mode
Physical Mode
Total 177536036 175398275 98.80 2137761 1.20
The procedure for Postal Ballot /electronic voting (e-voting) for aforesaid special resolutions are mentioned in the said postal
ballot notice.
SHARE CAPITAL AUDIT
The Share Capital Audit as required under Regulation 76 of SEBI (Depositories and Participants) Regulations, 2018, read with SEBI Circular
No. D&CC/FITTC/Cir-16/2002 dated December 31, 2002 and SEBI Circular No. CIR/MRD/ DP/30/2010, a Qualified Practicing Company
Secretary carries out Capital Audit to reconcile the total admitted equity capital with National Securities Depository Limited (NSDL) and the
Central Depository Services (India) Limited (CDSL) and the total issued and listed equity capital. This audit is carried out every quarter and the
reconciliation of share capital audit report thereon is submitted to the Stock Exchanges and to the Board of Directors.
CERTIFICATION BY MANAGING DIRECTOR AND CEO AND CHIEF FINANCIAL OFFICER
In terms of Listing Regulations, the certification by the Managing Director and CEO and the Chief Financial Officer is annexed to this
Annual Report.
MEANS OF COMMUNICATION
The Board recognizes the importance of two-way communication with shareholders and giving a report of results and progress and
responding to questions and issues raised in a timely and consistent manner. The Company follows a robust process of communicating
with its investors the Audited financial results, the quarterly results and half yearly results of the Company are published in English
(Business Standard) and Tamil newspaper (Makkal Kural). Press release is also given in the leading newspapers upto date financial results,
press releases, quarterly investor updates/ presentations and presentations made to institutional investors, investors/earning conference
calls or to the analysts, official news releases and other general information about the Company are also available on the Company’s
website https://bit.ly/39mGsPO The aforesaid financial results are disseminated to the Stock Exchanges within thirty minutes from the
close of the Board meetings at which these are considered and approved. Shareholders have been provided with an opportunity to provide
their email id for receiving correspondence and annual report in electronic form. The annual report and quarterly financial results has
been sent in electronic form to shareholders, who have registered their email ids. In view of the prevailing COVID-19 situation and
consequent lockdown across the country, the Ministry of Corporate Affairs (MCA) has exempted companies from circulation of physical
copies of Annual Report for year ended March 31, 2020. Our Company does online filing with National Stock Exchange of India Ltd
(NSE) and BSE Limited (BSE) through web based application: NEAPS (NSE Electronic Application Processing System) and BSE Listing
Centre.

The Company discloses to the Stock Exchanges, all information required to be disclosed under Regulation 30 read with Part A of Schedule
III of the Listing Regulations including material information having a bearing on the performance / operations of the Company or other
price sensitive information.
The Board of Directors has approved a policy for determining materiality of events and a team comprising of Senior Managerial Personnel
for the purpose of determining materiality of an event or information and making disclosures to Stock Exchanges.
GENERAL SHAREHOLDER INFORMATION
41ST Annual General Meeting
Particulars As on March 31, 2020

a. Day and Date Wednesday, August 19, 2020
b. Time 3.30 p.m. (IST)
c. Venue The Company is conducting meeting through video conferencing(VC)/other

audio visual means(OAVM)pursuant to the MCA circular. For details please
refer to the Notice of 41st AGM.
d. Financial Year 2019-2020
e. Dividend Payment Date An Interim Dividend of 50% was declared by the Board of Directors at its meeting
held on October 24, 2019 and the payments thereof were effected on November 19,
2019. The Board of Directors have not recommended the final dividend as such, the
interim dividend shall be the final dividend for the Financial Year 2019-20.
f. The name and address of each stock exchange(s) BSE Limited
at which the listed entity's securities are listed P J Towers, Dalal Street, Mumbai – 400 001.
and a confirmation about payment of annual
National Stock Exchange of India Limited
listing fee to each of such stock exchange(s)
Exchange Plaza, 5th Floor,
Plot no. C/1, G Block,
Bandra- Kurla Complex,
Bandra (East), Mumbai – 400 051
The Company has paid the annual listing and custodian fees for the financial year
2020 – 2021 to the Stock Exchanges and Depositories.
g. Stock Code
BSE Limited 511218
National Stock Exchange of India Limited SRTRANSFIN
Singapore Exchange Securities Trading Masala Bonds (Regulation S)- XS1789364418 XS1789617484.
Limited
USD Bonds - XS1953982086 (Regulation S), US825547AA08 (Rule 144A),
USY7758EEC13 (Regulation S),
Social Bonds - US825547AC63 (Rule 144A), USY7758EEF44 (Regulation S)
Demat ISIN in NSDL & CDSL INE721A01013
The Company’s Non-Convertible Debentures (NCDs) offered for subscription to public under the Prospectus dated September
23, 2013, Shelf Prospectus & Tranche I Prospectus both dated June 24, 2014, Shelf Prospectus dated June 22, 2018 in tranches
vide Tranche I Prospectus dated June 25, 2018, Tranche II Prospectus dated October 8, 2018 Tranche III Prospectus dated
December 27, 2018 , Shelf Prospectus dated July 09 ,2019 & Tranche I Prospectus dated July 12,2019 and Tranche II Prospectus
dated December 26,2019 are listed on NSE and BSE. The ISIN details for these NCDs are as under:
Security Description ISIN Codes in Stock Coupon (%) p.a. Coupon Date of Maturity
Exchanges Duration and Allotment Dates
Interest Payable
NCDs 6 - September 2013
Secured NCDs (Series III) INE721A07GT7 BSE – 934917 ($$) 10.75% p.a. ANNUAL 24/10/2013 24/10/2020
NSE – Y3
Secured NCDs (Series VI) INE721A07GW1 BSE – 934920 NA (*@@@) 24/10/2013 24/10/2020
NSE – Y6

Interest Payable
NCDs 7 - June 2014
Secured NCDs (Series III) INE721A07HJ6 BSE – 935132 (**) (@@) (~~) ANNUAL 15/07/2014 15/07/2021
NSE – Y9 10.15% p.a.
Secured NCDs (Series V) INE721A07HL2 BSE – 935136 (**) (&&&) ($$$) MONTHLY 15/07/2014 15/07/2021
NSE – YB (^^^) 9.71% p.a.
Secured NCDs (Series VIII) INE721A07HO6 BSE – 935142 NA (@###) 15/07/2014 15/07/2021
NSE – YG
NCD 8 - Tranche 1 (June 2018)
Secured NCDs (Series I) INE721A07NT3 BSE - 936228 (**) (AI##) MONTHLY 12/07/2018 12/07/2023
NSE – YH 8.93% p. a.
Secured NCDs (Series II) INE721A07NU1 BSE - 936230 (**) (AI##) MONTHLY 12/07/2018 12/07/2028
NSE – YI 9.03% p. a.
Secured NCDs (Series III) INE721A07NV9 BSE - 936232 (**) (AI##) ANNUAL 12/07/2018 12/07/2021
NSE – YJ 9.10% p. a.
Secured NCDs (Series IV) INE721A07NW7 BSE - 936234 (**) (AI##) ANNUAL 12/07/2018 12/07/2023
NSE – YK 9.30% p. a.
Secured NCDs (Series V) INE721A07NX5 BSE - 936236 (**) (AI##) ANNUAL 12/07/2018 12/07/2028
NSE – YL 9.40% p. a.
Secured NCDs (Series VI) INE721A07NY3 BSE - 936238 NA ( *@# ) 12/07/2018 12/07/2021
NSE – YM Cumulative
Secured NCDs (Series VII) INE721A07NZ0 BSE - 936240 NA ( *@## ) 12/07/2018 12/07/2023
NSE – YN Cumulative
NCD 8 - Tranche 2 (October 2018)
Secured NCDs (Series I) INE721A07OB9 BSE - 936324 ( ** ) MONTHLY 02/11/2018 02/11/2023
NSE - YO 9.12% p. a.
Secured NCDs (Series II) INE721A07OC7 BSE - 936326 ( ** ) MONTHLY 02/11/2018 02/11/2028
NSE - YP 9.30% p. a
NCDs (Series III) INE721A07OD5 BSE - 936328 ( ** ) ANNUAL 02/11/2018 02/11/2021
NSE - YQ 9.40% p. a
Secured NCDs (Series IV) INE721A07OE3 BSE - 936330 ( ** ) ANNUAL 02/11/2018 02/11/2023
NSE - YR 9.50% p. a
Secured NCDs (Series V) INE721A07OF0 BSE - 936332 ( ** ) ANNUAL 02/11/2018 02/11/2028
NSE - YS 9.70% p. a
Secured NCDs (Series VI) INE721A07OG8 BSE - 936334 NA (RM##) 02/11/2018 02/11/2021
NSE - YT Cumulative ( SC**** )
Secured NCDs (Series VII) INE721A07OH6 BSE - 936336 NA (RM##) 02/11/2018 02/11/2023
NSE - YU Cumulative ( SC****)
NCD 8 - Tranche 3 (December 2018)
Secured NCDs (Series I) INE721A07OM6 BSE - 936452 (**) 9.12% p.a. MONTHLY 06/02/2019 06/02/2024
NSE – YV
Secured NCDs (Series II) INE721A07ON4 BSE - 936454 (**) 9.30% p.a. MONTHLY 06/02/2019 06/02/2029
NSE – YW
Secured NCDs (Series III) INE721A07OO2 BSE - 936456 (**) 9.40% p. a. ANNUAL 06/02/2019 06/02/2022
NSE – YX
Secured NCDs (Series IV) INE721A07OP9 BSE - 936458 (**) 9.50% p. a. ANNUAL 06/02/2019 06/02/2024
NSE – YY
Secured NCDs (Series V) INE721A07OQ7 BSE - 936460 (**) 9.70% p. a. ANNUAL 06/02/2019 06/02/2029
NSE – YZ
Secured NCDs (Series VI) INE721A07OR5 BSE - 936462 NA Cumulative (RM##) 06/02/2019 06/02/2022
NSE - Z1 (SC**** )

Interest Payable
Secured NCDs (Series VII) INE721A07OS3 BSE - 936464 NA Cumulative (RM##) 06/02/2019 06/02/2024
NSE - Z2 (SC**** )
NCD 9 - Tranche 1 (July 2019)
Secured NCDs (Series I) INE721A07OY1 BSE – 936780 (**) MONTHLY 22/08/2019 22/02/2023
NSE - Z3 9.12% p. a.
Secured NCDs (Series II) INE721A07OZ8 BSE – 936782 (**) MONTHLY 22/08/2019 22/08/2024
NSE – Z4 9.22% p.a.
Secured NCDs (Series III) INE721A07PA8 BSE – 936784 (**) MONTHLY 22/08/2019 22/08/2026
NSE – Z5 9.31% p.a.
Secured NCDs (Series IV) INE721A07PB6 BSE – 936786 (**) ANNUAL 22/08/2019 22/02/2022
NSE – Z6 9.30% p.a.
Secured NCDs (Series V) INE721A07PC4 BSE – 936788 (**) ANNUAL 22/08/2019 22/02/2023
NSE – Z7 9.50% p.a.
Secured NCDs (Series VI) INE721A07PD2 BSE – 936790 (**) ANNUAL 22/08/2019 22/08/2024
NSE – Z8 9.60% p.a.
Secured NCDs (Series VII) INE721A07PE0 BSE - 936792 (**)9.70% p.a. ANNUAL 22/08/2019 22/08/2026
NSE – Z9
Secured NCDs (Series VIII) INE721A07PF7 BSE - 936794 NA (RM%) 22/08/2019 22/02/2023
NSE - ZA Cumulative ( SC% )
Secured NCDs (Series IX) INE721A07PG5 BSE – 936796 NA (RM%) 22/08/2019 22/08/2024
NSE – ZB Cumulative (SC% )
Secured NCDs (Series X) INE721A07PH3 BSE – 936798 NA (RM%) 22/08/2019 22/08/2026
NSE – ZC Cumulative (SC% )
NCD 9 - Tranche 2 (December 2019)
Secured NCDs (Series I) INE721A07PI1 BSE – 937061 (**) MONTHLY 28/01/2020 28/01/2023
NSE – ZD 8.52% p. a.
Secured NCDs (Series II) INE721A07PJ9 BSE – 937063 (**) MONTHLY 28/01/2020 28/01/2025
NSE – ZE 8.66% p.a.
Secured NCDs (Series III) INE721A07PK7 BSE – 937065 (**) MONTHLY 28/01/2020 28/01/2027
NSE – ZF 8.75% p.a.
Secured NCDs (Series IV) INE721A07PL5 BSE – 937067 (**) ANNUAL 28/01/2020 28/01/2023
NSE – ZG 8.85% p.a.
Secured NCDs (Series V) INE721A07PM3 BSE – 937069 (**) ANNUAL 28/01/2020 28/01/2025
NSE – ZH 9.00% p.a.
Secured NCDs (Series VI) INE721A07PN1 BSE – 937071 (**) ANNUAL 28/01/2020 28/01/2027
NSE – ZI 9.10% p.a.
Secured NCDs (Series VII) INE721A07PO9 BSE – 937073 NA (RM%%) 28/01/2020 28/01/2023
NSE – ZJ Cumulative ( SC%%)
Secured NCDs (Series VIII) INE721A07PP6 BSE – 937075 NA (RM%%) 28/01/2020 28/01/2025
NSE – ZK Cumulative ( SC%%)
Note:
1. ($$) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.00% per annum for NCDs held on
any Record Date.
2. (*@@) - Subject to applicability of tax deducted at source the NCD Holders who are Individuals will be redeemed for an amount of Rs.
1,723.87 per NCDs and the NCD Holders who are Non-Individuals will be redeemed for an amount of Rs.1,666.63 per NCDs.
3. (*@@@) - Subject to applicability of tax deducted at source the NCD Holders who are Individuals will be redeemed for an amount of
Rs.2,177.70 per NCDs and the NCD Holders who are Non-Individuals will be redeemed for an amount of Rs.2,044.79 per NCDs.
4. (~~) - NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.35% per annum for NCDs held on
any Record Date for the amount outstanding.
5. (^^^) - NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.23% per annum for NCDs held
on any Record Date for the amount outstanding and NCD Holders who are Non- Individuals on any Record Date the interest will be
calculated on coupon @ 9.71% per annum for the amount outstanding.

6. (**) - Senior Citizens (only First Allottee) shall be entitled to an additional yield at the rate of 0.25 % per annum.
7. (@@) – subject to applicable tax deducted at source, if any.
8. (&&&) – For Series V, Senior citizens (only First Allottee) will get a coupon of 11.17% per annum payable monthly.
9. ($$$) – Monthly Option shall be available only to Individuals applying for Allotment of NCDs in demat form only.
10. (@###) - Subject to applicability of tax deducted at source the NCD Holders who are Individuals will be redeemed for an amount of Rs.
2,143.79 per NCDs, the NCD Holders who are Non-Individuals will be redeemed for an amount of Rs. 1,968.44 per NCDs and the NCD
Holders who are Senior Citizens (only First Allottee) will be redeemed for an amount of Rs. 2,177.70 per NCDs at the end of the 84 months
from the Date of Allotment.
11. (AI##) - Additional incentive of 0.10% available to Category III and IV investors provided the NCDs issued under the Tranche -1 Issue are
continued to be held by such investors under Category III and Category IV on the relevant Record Date applicable for payment of coupon.
12. (*@# ) - For NCD Holders who fall under Category-I and / or Category II on the record date the amount payable on redemption for NCDs
will be Rs.1,298.91 per NCD. For NCD holders who fall under Category III and / or Category IV on the record date the amount payable
on redemption for NCDs will be Rs.1,302.49 per NCD.
13. (*@## )- For NCD Holders who fall under Category I and/or Category II on the record date the amount payable on redemption for NCDs
will be Rs.1,560.30 per NCD. For NCD holders who fall under Category III and/or Category IV on the record date the amount payable on
redemption for NCDs will be Rs. 1567.45 per NCD.
14. (SC****) - The amount payable on redemption to such Senior Citizens for NCDs under Series VI and Series VII is Rs. 1,318.67 and Rs.
1,592.70 per NCD respectively provided the NCDs issued under the NCD 8 Tranche 3 are continued to be held by such investors under
Category III and Category IV on the relevant Record Date for the relevant Redemption Payment date for Series VI and Series VII.
15. (RM##) - The amount payable on redemption for NCDs under Series - VI and Series - VII are Rs. 1309.66 per NCD and Rs.1,574.63 per
NCD respectively on the relevant Record Date for the relevant Redemption Payment date for Series VI and Series VII.
16. (RM%) - The amount payable on redemption for NCDs under Series - VIII , Series IX and Series X are Rs. 1,374.75 per NCD, Rs. 1,582.25
per NCD and Rs. 1,912.80 per NCD respectively on the relevant Record Date for the relevant Redemption Payment date for Series VIII,
Series IX and Series X.
17. (SC%) - The amount payable on redemption to such Senior Citizens for NCDs under Series VIII, Series IX and Series X is Rs. 1,385.80
per NCD, Rs. 1,600.40 per NCD and Rs. 1,943.55 per NCD respectively provided the NCDs issued under the NCD 9 Tranche 1 Issue are
continued to be held by such investors under Category III and Category IV on the relevant Record Date for the relevant Redemption Date
for the Series VIII, Series IX and Series X.
18. (RM%%) - The amount payable on redemption for NCDs under Series – VII and Series VII are Rs. 1289.99 per NCD and Rs. 1,539.35 per
NCD respectively on the relevant Record Date for the relevant Redemption Payment date for Series VII and Series VIII.
19. (SC%%) - The amount payable on redemption to such Senior Citizens for NCDs under Series VII and Series VIII is Rs. 1,298.91 and Rs.
1,557.11 per NCD respectively provided the NCDs issued under the NCD 9 Tranche 2 Issue are continued to be held by such investors
under Category III and Category IV on the relevant Record Date for the relevant Redemption Date for the Series VII and Series VIII.
Wherever redemption payment due date falls on a nonworking day, then the Company will make the payment on the previous working day
and wherever NCDs interest payment due date falls on a non-working day, then the Company will make the payment on the next working day
Dividend Distribution Policy
The dividend distribution policy of the Company is enclosed. The same is also available on the website for Details click on web
link https://bit.ly/2WzNefE.
GENERAL SHAREHOLDER INFORMATION
f. Stock Market
The high and low market price and volume of shares traded during each month of the financial year ended March 31, 20 20
are given below:
Months BSE Limited National Stock Exchange of India Limited

Share Prices Volume Share Prices Volume
High (Rs.) Low (Rs.) (No. of Shares) High (Rs.) Low (Rs.) (No. of Shares)
April 2019 1287.00 1085.15 627501 1290.00 1086.00 18944981
May 2019 1217.30 981.35 1167581 1217.95 980.30 29347730
June 2019 1191.300 1006.25 3838035 1191.80 1000.00 70619243
July 2019 1104.65 909.25 1855622 1104.95 909.05 45718998
August 2019 1075.30 942.70 1484872 1065.00 942.50 26807603
September 2019 1199.45 936.05 927651 1199.65 935.80 21399207
October 2019 1188.65 1011.00 721611 1189.50 1009.10 20901875
November 2019 1182.30 1106.00 735406 1181.55 1105.15 16753881
December 2019 1189.35 1061.55 504819 1189.50 1062.00 16564855
January 2020 1213.60 1017.20 1024837 1213.40 1016.65 21868821
February 2020 1366.90 967.00 2664022 1367.00 965.55 57445932
March 2020 1328.00 440.00 3326201 1358.15 440.00 69950261

STFC Share Price performance in comparison to BSE Sensex and S & P CNX Nifty
STFC Share Price at bSE and bse sensex

5000
4700 43000
STFC Share Price at BSE (Closing)
4400 40000
4100
37000
3800
3500 34000
3200 31000
2900 28000
2600
BSE Sensex
2300 25000
2000 22000
1700 19000
1400
16000
1100
800 13000
500 10000
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
STFC Share price at BSE S & P BSE Sensex
STFC Share price at nse and cnx nifty

1500 15000
1400 14000
STFC Share Price at NSE (Closing)
1300 13000
1200 12000
1100 11000
CNX Nifty
1000 10000
900 9000
800 8000
700 7000
600 6000
500 5000
400 4000
300 3000
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
STFC Share price at NSE CNX Nifty

g. No equity shares are suspended from trading during the Financial Year 2019 - 2020.
h. Registrar to an issue and Share Transfer Agents
The Registrar and Share Transfer Agents of the Company are:
Integrated Registry Management Services Private Limited
2nd Floor, Kences Towers, No. 1, Ramakrishna Street, North Usman Road, T Nagar, Chennai - 600 017
Ph: 044 - 2814 0801 - 03 Fax no: 044 – 28142479
Email: anusha@integratedindia.in Website: www.integratedindia.in
i. Note Trustee for Masala Bonds
(a) The Hongkong and Shanghai Banking Corporation Limited, Level 30, 1 Queen’s Road Central, Hong Kong and
(b) Axis Trustee Services Limited, The Ruby, 2nd Floor, SW, 29 Senapati Bapat Marg, Dadar West, Mumbai – 400028.
j. Share Transfer System:
The authority to approve share transfers has been delegated by the Board of Directors to the Securities Transfer Committee
(STC). Shares sent for transfer in physical form are registered and returned by our Registrar & Share Transfer Agent in fifteen
days of receipt of documents, provided the documents are found to be in order. The STC considers the transfer proposals
generally on a weekly basis.
k. Distribution of shareholding as on March 31, 2020
Sr. No. of Equity Shares No of % of No of Shares % of Shareholding
No Shareholders Shareholders held
1 1 - 500 52977 90.46 4285868 1.89
2 501 - 1000 3120 5.33 2309616 1.02
3 1001 - 2000 1104 1.89 1565894 0.69
4 2001 - 3000 325 0.56 803166 0.35
5 3001 - 4000 120 0.2 419399 0.18
6 4001 - 5000 105 0.18 476812 0.21
7 5001 - 10000 181 0.31 1306758 0.58
8 10001 and above 629 1.07 215715223 95.08
Total 58561 100 226882736 100
l. Categories of shareholders as on March 31, 2020

Sr. Category Total
No. No.of Shares held % of shareholding
1 Promoters * 59554984 26.25%
2 Bank 344 0.00%
3 Bodies Corporate 657296 0.29%
4 Foreign Portfolio Investor 1&2 146693422 64.66%
5 Clearing Member 979601 0.43%
6 Association of Persons 115 0.00%
7 Fi-Others 14639 0.01%
8 Limited Liability Partnership 44934 0.02%
9 Mutual Fund 3971231 1.75%
10 Fi-Government Sponsored 500000 0.22%
11 NRI 305241 0.13%
12 Resident Indian & HUF 11077882 4.87%
13 Trusts 398221 0.18%
14 NBFCs 110 0.00%
15 Insurance Company 1420553 0.63%
16 Unclaimed Securities Suspense 76690 0.03%
17 Alternate Investment Fund 221650 0.10%
18 IEPF Authority 965823 0.43%
Grand Total 226882736 100.00%
*On June 27, 2019 and on June 28, 2019, our Promoter acquired an aggregate number of 331,924 Equity Shares in the Company
and Shriram Financial Ventures (Chennai) Private Limited, a company forming part of the promoter group, acquired an
aggregate number of 50,037 Equity Shares in the Company. Post such acquisition, SCL holds 59,504,947 Equity Shares in the
Company aggregating 26.23% of the paid-up capital and Shriram Financial Ventures (Chennai) Private Limited holds 50,037
Equity Shares in the Company aggregating 0.02% of the paid-up capital.

m. Dematerialization of shares and liquidity
The Company’s scrip forms part of the compulsory Demat segment for all investors effective from July 24, 2000. To facilitate the
investors in having an easy access to the demat system, the Company has signed up with both National Securities Depository
Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The connectivity has been established through
Integrated Registry Management Services Private Limited. As on March 31, 2020, the total of 224403752 equity shares constituting
98. 91 % of the paid up capital, have been dematerialized.
n. The Company has not issued any outstanding Global Depository Receipts or American Depository Receipts or warrants or
any convertible instruments, conversion date and likely impact on equity.
o. Commodity price risk or foreign exchange risk and hedging activities: Commodity price risk :Not Applicable. The Company has
fully hedged its foreign exchange risks associated with External Commercial Borrowings through issue of senior secured notes /
bonds in the offshore market under GMTN Program and Loans through various dervivaties/hedging products.
p. Locations
List of branches are mentioned in the “Our Reach” Section on page no. 7 in the Annual Report.
q. Address for correspondence & Registered Office:
Registered Office:
Mookambika Complex, 3rd Floor, No.4, Lady Desika Road, Mylapore, Chennai – 600 004, Tamil Nadu, India. Tel.: 91-44-
24990356 Fax: 91-44-24993272
Corporate Office:
Wockhardt Towers, Level-3, West Wing, C-2, G-Block, Bandra- Kurla Complex, Bandra - (East), Mumbai - 400 051. Phone: 91-
22 - 40959595, Fax: 91-22 - 40959597, Website: www.stfc.in
Email ID for Investor Grievance:
The following email ID has been designated for communicating investors’ grievances.
• For Equity Shares related queries/complaints: secretarial@stfc.in
• For Public Issue of Non-Convertible Debentures 2013- Prospectus related queries/complaints: stfcncd6comp@stfc.in
• For Public Issue of Non-Convertible Debentures 2014- Prospectus related queries/complaints: stfcncd7comp@stfc.in
• For Public Issue of Non-Convertible Debentures 2018 Shelf and Tranche 1 Prospectus- related queries/complaints:
stfcncd8comp@stfc.in
• For Public Issue of Non-Convertible Debentures 2018 Tranche II Prospectus - related queries/complaints:
stfcncd8t2comp@stfc.in
For Public Issue of Non-Convertible Debentures 2018 Tranche III Prospectus- related queries/complaints:
For Public Issue of Non-Convertible Debentures 2019 Tranche I Prospectus- related queries/complaints:
For Public Issue of Non-Convertible Debentures 2019 Tranche II Prospectus- related queries/complaints:
The aforesaid email ids has been displayed on the Company’s website
r. The list of all credit ratings for all debt instruments, fixed deposit, masala bonds, U.S. Dollar senior secured notes for details refer
page no. 22 in the Directors’ Report.
s. Other Disclosures
(A) There are no materially significant Related Party Transactions (RPTs) with the Company’s Promoters, Directors, Key Managerial
Personnel or their relatives, which may have potential conflict with the interests of the Company at large. Disclosures on
transactions with related parties, as required under the Indian Accounting Standard 24, have been incorporated in the Notes
to the Accounts. The statement of RPTs is placed before the Audit Committee and the Board on quarterly basis. Omnibus
approval was obtained for the transactions of repetitive nature. The Policy on Materiality of RPTs and dealing with RPTs as
approved by the Board is uploaded on the Company’s website at the web link : https://bit.ly/2CIhkGS
None of the Directors has any pecuniary relationships or transactions vis-à-vis the Company save and except the payment of
sitting fees and commission to Independent Directors. The details of the transactions with Related Party are provided in the
notes to the Financial Statements.
(B) There were no instances of non-compliance by the Company for which any penalties or strictures were imposed on the
Company by the Stock Exchanges and SEBI, or any statutory authority on any matter related to capital markets during the last
three years.

(C) The Company has adopted the Whistle Blower Policy and has established the necessary mechanism in line with the Stock
Exchanges, for employees to report concerns about unethical behavior. No person has been denied access to the Audit
Committee. The Vigil Mechanism as per Regulation 22 of Listing Regulations ensures standards of professionalism, honesty,
integrity and ethical behavior. The Whistle Blower Policy/Vigil Mechanism is uploaded on the Company’s website at the web
link of https://bit.ly/3eH0jde
(D) Details of compliance with Mandatory requirements and adoption of non-mandatory requirements
1. The Company has complied with all the applicable mandatory requirements of the Listing Regulations.
2. The Company has also adopted the non-mandatory requirement as specified in the Listing Regulations regarding
unmodified Financial Statements, separate posts of Chairperson and Chief Executive Officer and Reporting of Internal
Auditor.
(E) The Company does not have any material listed/ unlisted subsidiary companies as defined in Regulation 24 (1) of Listing
Regulations. However, the Company has framed the Policy on Material Subsidiaries and the same is uploaded on the
Company’s website at the web link: https://bit.ly/2WAS5xo
(F) The policy on dealing with related party disclosures is uploaded on the Company’s website at the web link of
https://bit.ly/2ZG5g20
(G) The disclosure of commodity price risks and commodity hedging activities: Not applicable.
(H) The Company has not raised funds through preferential allotment or qualified institutions placement under Regulation
32(7A).
(I) Pursuant to Schedule V Para C clause (10)(i) of the Listing Regulations, the Company has obtained certificate from
Martinho Ferrao & Associates practicing company secretary confirming that none of the directors on the board of the
company have been debarred or disqualified from being appointed or continuing as directors of companies by the Board/
Ministry of Corporate Affairs or any such statutory authority is annexed to this report as Annexure A
(J) In the financial year 2019 - 2020 the board has accepted all recommendations of its committees.
(K) The Company has paid all fees on a consolidated basis for all services rendered by statutory auditor.
The details of total fees for all services paid by the Company to the statutory auditor and all entities in the network firm/
network entity of which the statutory auditors is a part, are as follows -
Particulars Amount (Rs. in Lacs)

Statutory Audit Fees 88.00
Tax Audit Fees 9.00
Others 96.47(*)
Total 196.47
(*)Including 50% GST portion
(L) The disclosure in relation to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013, for details refer Directors’ Report.
(M) The Company has complied all the requirement of corporate governance report as contained in Clause C (2) to (10) of
Schedule V read with Regulation 34(3) of Listing Regulations.
(N) The Company has adopted Code of Conduct (‘Code’) for the Members of the Board and Senior Management Personnel
as required under Regulation 17(5) of the Listing Regulations. All the Board Members and the Senior Management
Personnel have affirmed compliance of the Code. The Annual Report of the Company contains a declaration to this
effect signed by the Managing Director & CEO. Further, the Code of Conduct of the Company applicable to the Board
and Senior Management Personnel is also uploaded on the Company’s website at the web link of https://bit.ly/32Ay3qD

t. Equity Shares in the Suspense Account
As required under Schedule V of Listing Regulations. The Company has opened “STFC – Unclaimed Suspense Account”
with the Depository Participants for the purpose of transferring unclaimed equity shares held in physical form. The
Company will transfer the shares lying unclaimed to the eligible shareholders as and when the request for the same
has been received after proper verification. As on March 31, 2020 there were 76690 unclaimed equity shares in the
Unclaimed Suspense Account. The voting rights on these shares shall remain frozen till the rightful owner of such
shares claims the shares.
Particulars No. of Shareholders No. of Shares

Aggregate number of Shareholders and outstanding shares held in the 277 88570
Unclaimed Suspense Account as on April 01, 2019.
Number of Shareholders / legal heirs who approached the Company for transfer 13 5630
of shares from the Unclaimed Suspense Account, for the period from April 01,
2019 to March 31, 2020.
Number of Shareholders / legal heirs to whom the shares were transferred from 13 5630
the Unclaimed Suspense Account upon receipt and verification of necessary
documents, for the period from April 01, 2019 to March 31, 2020.
Number of Shareholders / legal heirs of whom the shares were transferred from 20 6250
the Unclaimed Suspense Account to Investor Education and Protection Fund
Authority pursuant to the Government of India Gazette notification No. REGD.
NO. D. L.-33004/99 dated February 28, 2017 issued by Ministry of Corporate
Affairs (MCA), April 01, 2019 to March 31, 2020.
Aggregate number of Shareholders and outstanding shares held in the 244 76690
Unclaimed Suspense Account as on March 31, 2020.
The Company had complied all the disclosures of the compliance with Corporate Governance requirements specified
in Regulation 17 to 27 and clauses (b) to (i) of sub regulation (2) of Regulation 46 of Listing Regulations (relating to
disclosure on the website of the Company)
DIVIDEND DISTRIBUTION POLICY Category of Dividends

Preamble The Companies Act provides for two forms of Dividend- Final and
Dividend is the payment made by a Company to its shareholders, Interim. The Board shall have the absolute power to declare interim
usually in the form of distribution of its profits. The profits earned dividend during the financial year, as and when they consider it fit.
by the Company can either be retained in business and used for Normally, the Board will endeavour to declare an interim dividend
acquisitions, expansion or diversification, or it can be distributed after finalization of quarterly financial accounts. The Board may
to the shareholders. The Company may choose to retain a part declare interim dividend based on profits of the Company, one or
of its profits and distribute the balance among its shareholders as more times in a financial year as and when considered appropriate,
dividend. This Policy aims to reconcile between all these needs. in line with this policy.
The objective of this policy is to ensure a regular dividend income After the annual accounts are prepared, the Board may recommend
for the shareholders and long term capital appreciation for all final dividend to the shareholders for their approval in the General
shareholders of the Company. The Company would ensure to Meeting of the Company. In the event the Board declares more
strike the right balance between the quantum of dividend paid and than one interim dividend in a financial year, the Board may
amount of profits retained in the business for various purposes. The recommend to the shareholder to treat the last interim dividend
Board of Directors (Board) will refer to the policy while declaring/ as a final Dividend.
recommending dividends. Through this policy, the Company Recommendation / Declaration of Dividend
would endeavour fairness, consistency and sustainability while Subject to the provisions of the Companies Act, the Board shall
distributing profits to the shareholders. recommend/declare/ pay the Dividend only out of-
This policy also stipulates the process for recommendation/ i. Current financial year’s profit:
declaration of dividend and its pay-out by the Company in a) after providing for depreciation in accordance with law;
accordance with the provisions of the Companies Act,2013 (the b) after transferring to reserves such amount as may be
Companies Act) and other rules, regulations etc. as applicable to prescribed under the Companies Act or applicable law,
the Company. regulations, norms or as may be otherwise considered
appropriate by the Board at its discretion.
Class of Shares
ii. The profits for any previous financial year(s):
The Company has issued only Equity Shares and no Preference a) after providing for depreciation in accordance with law;
shares issued by the Company are outstanding. b) remaining undistributed; or

iii. out of (i) &(ii) both. vi) Fresh investments into external businesses;
iv. out of free reserves in the manner permissible under the vii) Cash flow from operations
Companies Act. viii) Cost of raising funds
Factors to be considered while declaring Dividend ix) Providing for unforeseen events and contingencies with
The decision regarding dividend is a crucial decision as it determines financial implication.
the amount of profit to be distributed among shareholders and Any other factor as deemed fit by the Board.
amount of profit to be retained in business. The Board will endeavour Process for approval of Payment of Interim and Final Dividend
to take a decision with an objective to enhance shareholders wealth  The Company will give prior intimation of 2 working days
and market value of the shares. However, the decision regarding to Stock Exchanges (excluding the date of intimation and
dividend is subject to several factors and hence any optimal policy the date of the Board meeting) of date of Board Meeting in
in this regard may be far from obvious. The Board considers a stable which the declaration / recommendation of dividend will be
dividend to constitute an important element of the Company’s considered.
investment attractiveness and shareholder return. As the Company
is operating in rapidly developing, yet volatile, markets, its primary  The Company will inform about the decision taken by Board
need is to maintain sufficient resources and financial flexibility regarding dividend to Stock Exchange within 30 minutes of
to meet financial and operational requirements. The Company the closure of the Board Meeting.
continually seeks ways to create shareholder value through both  The Company will fix Record date for the purpose of
commercial and financial strategies, which may include both determination for list of shareholders eligible to receive
organic and inorganic development as well as the Company’s capital dividend.
management practices.  The Company shall recommend or declare dividend at least 5
The shareholders of the Company may not expect dividend for working days (excluding the date of intimation and the record
a financial year(s) in the circumstances of challenging/sluggish date) before the record date is fixed for the purpose.
market conditions, tough liquidity position, losses or inadequate  The intimation for fixing Record date shall be given to
profits. exchange at least seven working days in advance (excluding
The decision regarding recommendation / declaration of dividend the date of intimation and the record date).
will depend upon various external and internal factors including In the event of any amendment in SEBI (Listing Obligations and
the following: Disclosure Requirements) Regulations, 2015 or any other applicable
External Factors:- law with respect to the process of recommendation/approval/
State of Economy- in case of uncertain or recessionary economic payment of dividend, the same shall prevail and shall be deemed to
and business conditions, the Board will endeavour to retain larger form part of this policy.
part of profits to build up reserves to absorb future shocks. Transfer of Unpaid / Unclaimed Dividend and Equity Shares to
Capital Markets- when the markets are favourable, dividend Investor Education and Protection Fund (IEPF)
pay-out can be liberal. However, in case of unfavourable market As per section 124(5) of the Companies Act, the dividend which
conditions, Board may resort to a conservative dividend pay-out in remains unpaid / unclaimed for a period of 7 years from the date
order to conserve cash outflows. of transfer to unpaid dividend account shall be transferred by the
Statutory and Contractual Restrictions- The Board needs to keep Company to IEPF.
in mind the restrictions imposed under the Companies Act and any Utilisation of Retained Earnings
other laws, the regulatory developments with regard to declaration The Retained earnings strengthen the Company’s net owned funds.
of dividend, the Company’s contractual obligations under the It will further help in maintaining Capital Adequacy Ratio (CAR)
loan agreements / debenture trust deed and other agreements, for Non-Banking Financial Companies (NBFCs) in the growth
documents, writings limiting / putting restrictions on dividend phase. The Board from time to time will decide utilization of the
pay-out. retained earnings depending upon various factors including organic
Internal Factors:- / inorganic growth strategies of the Company, market competition,
Apart from the various external factors aforementioned, the Board creating long term shareholder value etc. The Board will ensure
will take into account various internal factors while recommending judicious balancing of these factors in the interest of the Company
/ declaring Dividend, which inter alia will include- and its stakeholders.
i) Profits earned during the year; Review
ii) Present and future capital requirements of the existing This policy is in accordance with SEBI Circular No. SEBI/ LAD-
businesses; / capital expenditures and the Company’s debt NRO/GN/2016-17/008 dated 08th July, 2016. The same will be
position reviewed by the Board periodically for additions, deletions, changes
iii) Business Acquisitions opportunities; or alterations in the parameters, process of recommendation/
declaration/ pay-out of dividend considered in the policy and in
iv) Expansion/ Modernization of existing businesses; / growth
line with changes in regulations as applicable to the Company.
opportunities available to the Company
v) Additional investments in subsidiaries/associates of the
Company;

Annexure A
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015)
To,
The Members of
Mookambika Complex, 3rd floor,
No. 4, Lady Desika Road,
Mylapore, Chennai – 600004
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Shriram Transport
Finance Company Limited having CIN L65191TN1979PLC007874 and having registered office at Mookambika Complex, 3rd
floor, No. 4, Lady Desika Road, Mylapore, Chennai – 600004 (hereinafter referred to as ‘the Company’), produced before us
by the Company in electronic mode, for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with
Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015. No physical verification of any document / record was possible due to the current nationwide lockdown owing
to the outbreak of COVID-19 pandemic.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending
on 31st March 2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. Name of Director DIN Date of appointment in

No. Company
1. Lakshminarayanan Subramanian 02808698 22/09/2009
2. Umesh Govind Revankar 00141189 25/10/2016
3. Kishori Jayendra Udeshi 01344073 30/10/2012
4. Srinivasan Sridhar 00004272 20/10/2014
5. Puneet Bhatia 00143973 26/10/2006
6. Ravi Devaki Venkataraman 00171603 18/06/2015
7. Panja Pradeep Kumar 03614568 25/10/2018
8. Ignatius Michael Viljoen 08452443 08/05/2019
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance
as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the
affairs of the Company.
For Martinho Ferrao & Associates

Company Secretaries
Martinho Ferrao
Proprietor
F.C.S. No. 6221
Mumbai C.P. No. 5676
May 28, 2020 UDIN: F006221B000295675

CEO/CFO
CERTIFICATION
To,
The Board of Directors of Shriram Transport Finance Company Limited
We, to the best of our knowledge and belief, certify that-
A. We have reviewed financial statements and the cash flow statements for the year ended March 31, 2020 and that to the best
of our knowledge and belief;
1) These statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading.
2) These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. There are to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the
Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have disclosed, based on our evaluation wherever applicable to the Auditors and the Audit Committee that;
1) there were no significant changes in internal controls over financial reporting during the year;
2) there are no significant changes in accounting policies during the year, and
3) there were no instances of significant fraud of which we are become aware and the involvement therein, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting.
UMESH REVANKAR
PARAG SHARMA
Executive Director & CFO
Mumbai
June 10, 2020
DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL

WITH THE COMPANY’S CODE OF CONDUCT
The Board of Directors of Shriram Transport Finance Company Limited at its Meeting held on January 29, 2005 adopted Code
of Conduct as amended on October 27, 2010 to be followed by all Members of the Board and Senior Management Personnel of
the Company respectively in compliance with the Regulation 17(5) of Securities Exchange Board of India (Listing Obligations &
Disclosure Requirements) Regulations,2015 with the Stock Exchanges where the shares of the Company are listed.
As per Regulation 17(5) and Regulation 26(3) of Securities Exchange Board of India (Listing Obligations & Disclosure
Requirements) Regulations,2015 executed with the Stock Exchanges, all Board Members and Senior Management Personnel have
affirmed Compliance with the Code of Conduct for the year ended March 31, 2020.
UMESH REVANKAR
Mumbai
June 10, 2020

BUSINESS RESPONSIBILITY
REPORT 2019- 2020
SECTION A SECTION B
GENERAL INFORMATION FINANCIAL DETAILS OF THE COMPANY
Sr. Sr.
No. Particulars Details No. Particulars AMOUNT (Rs. In crores)
1 Corporate Identity L65191TN1979PLC007874 1 Paid up Capital 226.88
Number (CIN) of the 2 Total Turnover 16,582.63
Company 3 Total profit after taxes 2,501.84
4 Total spending on 2.12%
2 Name of the Company Shriram Transport Finance Corporate Social
Company Limited (“the Responsibility (CSR) as
Company”) percentage of profit after
tax (%)
3 Registered address Mookambika Complex, 3rd
Road, Mylapore, Chennai, 5 List of Activities in which expenditure in above point
Tamil Nadu – 600004. 4 has been incurred: Please refer Annexure – I
Tel No: +91 44 2499 0356 (Report on CSR Activities)
Fax: +91 44 2499 3272.
SECTION C
4 Website www.stfc.in
OTHER DETAILS
5 Email id vivekmadhukar.a@stfc.in Sr.
No. Particulars Details
6 Financial year reported 2019-2020 1 Company subsidiary as Nil
on March 31, 2020
7 Sector(s) that the NIC code of the products/
Company is engaged in services: 2 Subsidiaries NA
(industial activity code- 64920 – other credit granting. participating in
wise) Company’s BR
The Company holds a initiatives
certificate of registration 3 Other entities (e.g. NA
dated April 17, 2007 bearing suppliers, distributors
registration no. 07-00459 etc.) participating
issued by the Reserve Bank in Company’s BR
of India to carry on the initiatives
activities of a non-banking
financial company.
SECTION D
8 Three key products/ Financing of heavy, medium
BR INFORMATION
services of the Company and light commercial vehicles
(as in balance sheet) and passenger vehicles. 1. Details of Director/Directors responsible for BR
a. Details of the Director/Directors responsible for
9 Number of locations (i) International : Nil implementation of the BR policy/policies
(ii) National : 1758 Branches Sr.
Particulars Details
No.
10 Markets served by the Financing of pre-owned and 1. DIN 00141189
Company -Local/State/ new commercial vehicle 2 Name Mr. Umesh Revankar
National/International throughout the country. 3 Designation Managing Director
& CEO
b. Details of BR head
Sr. Particulars Details
No.
1 DIN (if applicable) Not Applicable
2 Name Mr. S. Sunder
3 Designation Executive Director
– Accounts &
Administration
4 Telephone number 91-022-40959595
5 E-mail id secretarial@stfc.in

2. Principle-wise (as per NVGs) BR Policy/Policies(Reply in Y/N)

(a) Details of Compliance (Reply in Y/N)
Stakeholders engageme
Value to customers and

Public and regulatory
Ethics, transparency
Environment policy
Inclusive growth
Product safety
Human rights
Well-being of
consumers
employees
policy
and
Sr.
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No
1 Do you have policy/policies for Y Y Y Y Y Y Y Y Y
2 Has the policy being formulated in consultation
Y N Y Y N Y N Y Y
with the relevant stakeholders?
3 Does the policy conform to any national /
international standards? If yes, specify? Y Y Y Y Y Y Y Y Y
(50 words)
4 Has the policy being approved by the Board? If
yes, has it been signed by MD/owner/CEO/ Y Y Y Y Y Y Y Y Y
appropriate Board Director?
5 Does the company have a specified committee
of the Board/ Director/Official to oversee the Y Y Y Y Y Y Y Y Y
implementation of the policy?
6 Indicate the link for the policy to be viewed (i)The Code of conduct of the Company is available at
online? https://bit.ly/32Ay3qD
(ii) The Whistle Blower Policy / Vigil Mechanism of the
Company is available at https://bit.ly/30lsOs5
(iii) The Fair practice code of the Company is available at
https://bit.ly/32yMiMn
(iv) Corporate Social Responsibility Policy
https://bit.ly/2B9TV0w
Note: The remaining policies of the Company are internal
documents and are not accessible to the public.
7 Has the policy been formally communicated to
Y Y Y Y Y Y Y Y Y
all relevant internal and external stakeholders?
8 Does the company have in-house structure to
Y Y Y Y Y Y Y Y Y
implement the policy/policies
9 Does the Company have a grievance redressal
mechanism related to the policy/policies to
Y Y Y Y Y Y N Y Y
address stakeholders’ grievances related to the
policy/policies?
10 Has the company carried out independent audit/
evaluation of the working of this policy by an N N N N N N N N N
internal or external agency?

(b) If answer to the question at Sr.No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Sr.
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No
1 The company has not understood the Principles --- --- --- --- --- --- --- --- ---
2 The company is not at a stage where it finds itself
in a position to formulate and implement the --- --- --- --- --- --- --- --- ---
policies on specified principles
3 The company does not have financial or
--- --- --- --- --- --- --- --- ---
manpower resources available for the task
4 It is planned to be done within next 6 months --- --- --- --- --- --- --- --- ---
5 It is planned to be done within the next 1 year --- --- --- --- --- --- --- --- ---
6 Any other reason (please specify) --- --- --- --- --- --- --- --- ---
3. Governance related to BR
The Business Responsibility Performence is Being Monitored by the Board of Directors of the Company. The Company has
been publishing the Business Responsibility (BR) Report annually.
SECTION E
PRINCIPLE-WISE PERFORMANCE
Ethics of The Company
Principle 1: Business should conduct and govern themselves with Ethics, Transparency and Accountability:
Our philosophy on Corporate Governance, inter alia, is aimed at enhancing long term shareholder value, achieving
transparency and professionalism in all decisions and activities of the Company and achieving excellence in corporate
governance.
The Company considers Corporate Governance as an integral part of good management. We have developed good
governance structure for our organization and formulated procedures and practices that ensure ethical conduct at all levels
of the organization. We continuously review and upgrade the procedures and practices. We maintain transparency in our
communication with our investors. We have put in place a mechanism for resolution of their grievances. We have Whistle
Blower Policy/Vigil Mechanism in place. We do not engage in any practice that is abusive, corrupt or anti-competition.
We have avoided complicity with actions of third party that violates Business Responsibility Principles. All members of the
Board of Directors and Senior Management Personnel affirm compliance with the Code of Conduct on an annual basis.
We conducted programs to familiarize the directors with changes in regulatory and business environment. We have
deployed the practice of separating the roles of the Chairman of the Board and the CEO to ensure the right focus to
governance. The Chairman of the Board is Non-executive Independent Director. Our Directors have reviewed its own
performance, the performance of Individual Directors, functioning of the Board and its Committees, based on the criteria
formulated by the Nomination and Remuneration Committee. During the process, the Board also reviewed the Corporate
Governance Practices, ethical standards in the Company.
CONTRIBUTION TO SUSTAINABILITY
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
We are engaged in the business of financing of commercial vehicles. Our focus is on financing pre-owned commercial
vehicle generally up to 10 years old. In this process we check authorization /certificates for safety, fitness and emission
of the vehicle. Our various initiatives are aimed at influencing our customers for creating awareness about environment
protection, reducing impact of emissions from on-road vehicles on the environment. We make appeal to our customers
for timely maintenance of the vehicles. We give loans to them for replacement of tyres and engine parts. Our Drivers’
training program provides training primarily to unemployed/low income youths from rural and urban areas for driving
of commercial/passenger vehicles.We have also initiated various programs for unskilled drivers such as refresher driver
training program,to ensure defensive driving,digital and financial literacy,preventive health check up and evaluation of
drivers training through Automotive Skills Development Council (ASDC) certifying the completion of advance driver
training program. The training includes holistic development of drivers from technical skills to soft skills. The objective
of this initiative in turn is to transform the entire driver employment skill segment to a well-managed professionally
empowered skill segment.

EMPLOYEES WELL-BEING
Principle 3: Business should promote wellbeing of all employees
We believe that our employees are our most valuable asset and greatest strength. We provide equal opportunity to all
employees starting from their recruitment irrespective of their caste, creed, gender, race, religion, language, disability or
sexual orientation. Our employees belong to all parts of the country and are selected based on individual merit without any
discrimination or preference. Several female employees of the Company have reached senior positions in the organization
and are involved in the decision making process. Free medical checkup camps and yoga sessions are conducted on an
ongoing basis in order to promote health consciousness among the employees. Our relationship with employees continues
to be cordial. We do not have any trade union or employee association. Our employees have free access to the management
to express their views and suggestions. The management and staff has a mutual faith and trust. We provide Group Medical/
Accident/Life Insurance policy to all employees and loan facility extended to the permanent employees of the Company.
We have “Shri Guru” a chatbot facility to employees wherein employees can raise any queries in respect of the Companys’
products and process involved. As a part of learning initiative Company endeavours to keep upgrading the skillsets of our
employees. In line with our quest for excellence, we have introduced the Mycoach E-Learning Platform. This e-learning
platform helps our employees enhance their expertise and knowledge on products and processes. We also offer the
Mybook and Quiz Platforms as additional tools to upgrade their understanding. The Company has also launched monthly
newsletter “ShriConnect” yet another initiative to communicate employees internally on various Company initiatives and
industry related updates.We have launched “Employee Rewards Program aimed to bring more employee participation in
talent building exercises and to recognize the outstanding contributions of every individual employee. The employees will
be rewarded with reward points on the basis of few predefined parameters.
We have systems in place to inculcate high performance culture in the organization. We organize periodically the training
programmes for upgrading functional and soft skills of employees. The employees who have successfully completed the
Management Education Program are acting as mentor providing on the job training and guidance to their colleagues. We
look forward to percolate this process throughout the organization. In order to ensure healthy working conditions and
prevent sexual harassment of women employees, we have constituted Internal Complaint Committees at various places.
The Committees are chaired by woman employees of the Company.
During lockdown period caused by COVID-19 pandemic, refresher training was imparted to employees which also
included educating them on safety precaution and standard operating procedures. For more details on employee training
please refer Management Discussion and Analysis report.
STAKEHOLDERS ENGAGEMENT
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized
We had already developed “MYSHRIRAM” app for enabling customers to transact all their business requirements through
digitally. We are also providing the ‘FAST TAG’ re-charge facility to all customers which helps them to pay toll charges digitally.
We also supplied POS machines to all the branches for enabling debit card swiping. We have also provided “KIOSKS” facility
at selected branches for customers to transact during closing hours of branch offices. Our customers can directly remit into the
account at the bank branches against their loan account and Company has provided the facility to transfer the amount through
electronic mode. The Company has launched monthly newsletter titled as “Shrisandesh”, yet another initiative to communicate
all customers on various initiatives of the Company and industry related updates. This newsletter is being sent to all customers
through SMS and email.
Our Fair Practice Code provides mechanism for redressal of customer complaints. Our policy is to treat all customers
in fair manner. Our entire recovery and collection operation is administered in-house and we do not outsource
loan recovery and collection operations. We have relationship based recovery procedures well-suited to our target
market in the commercial vehicle financing industry. We are regular in payment of interest and repayment of credit
facilities availed from Banks and Financial Institutions. We enjoy good reputation, goodwill and standing in the
financial markets. Our good track record has enabled us to obtain good credit ratings from the reputed Credit Rating
Institutions. This enables smooth raising of funds from investors. We continue to service our Fixed Deposit holders
on time and offer higher interest rate to senior citizens. We make periodical follow up with our investors requesting
them to collect their unpaid dividend, interest, redemption/maturity proceeds of Fixed Deposits and Debentures etc.
We have made appeal to them to update their database and to register email ids with us for faster communication
and prompt service. Our Company has a good dividend track report and has consistently declared dividends for the
past several years.

HUMAN RIGHTS
Principle 5: Businesses should respect and promote human rights
As a good corporate citizen we respect the human rights of those who we engage with. We pay fair wages to our
employees and do not discriminate between male and female employees. They are treated equally with dignity and
are given equal opportunities, rights and benefits. We comply and adhere to all the human rights laws and guidelines.
We strive to percolate these values at all levels in the organization. We provide scholarship to students from weaker
sections of the society. We do organise medical camps for the socio economically weaker sections of the society
through mobile medical units and OPD clinics.
ENVIRONMENT
Principle 6: Business should respect, protect and make efforts to restore the environment
We continue to create awareness about environment protection among employees and customers through our
environment policy. .We encourage our customers to replace their old age vehicles with younger age vehicles and
thus works for its contribution to Environment. In the process of loan disbursement we check fitness certificate of
the financed vehicle for safe driving. The loan vehicles are insured and the insurance policy is renewed regularly. We
educate our customers to obtain proper PUC certificate and renew it periodically. We provide financial assistance
to the borrowers for replacement of tyres, engine parts etc. which enables timely maintenance of loan vehicles,
safe driving, reducing accidents and pollution. We have aligned our loan disbursement policy with the applicable
environmental policies.
We are continuously making appeal to our shareholders to participate in the ‘Green initiative’ to reduce use of paper
by receiving soft copies of annual reports using internet facilities, receiving dividend by direct credit to their bank
accounts instead of physical dividend warrants etc..For payment of Interest, dividend, maturity amount of debentures
and fixed deposits etc. as far as possible we use methods of electronic remittances such as NECS, NEFT, RTGS which
also ensures faster credit of money to the bank accounts of the investors, avoids use of paper for dividend / interest
warrants, and atpar cheques. Our objective is to achieve highest level of paperless office by adopting practices,
methods and modern techniques in our internal and external communication with all stakeholders.
INFLUENCING PUBLIC & REGULATORY POLICIES
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
We take up the issues and matters impacting our business segment and give our suggestions in respect of the proposals of
the regulatory and government bodies directly as well as through chambers of commerce and industrial associations in the
best interest of the commercial vehicle financing segment of the Industry and Small Road Transport Operators.
INCLUSIVE GROWTH
Principle 8: Businesses should support inclusive growth and equitable development
We cater to the financing needs of Small Road Transport Operators (SRTOs) and First Time Buyers (FTBs) generally
belonging to the weaker sections of the society all over the country. In order to provide financial assistance for purchase of
vehicles in the regions where banking services are not easily available, we have opened several rural centers catering to their
needs. We promote the ‘financial inclusion’ which is the focus point of all welfare initiatives of the government. We provide
finance to these pre-owned commercial vehicle operators at favorable interest rates and repayment terms as compared to
private financiers in the unorganized sector.
VALUE OF CUSTOMERS
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner
We have track record of loyal customers who have achieved advancement, progress, growth of their business through
long term relationship with us. We create value by providing products and services to our customers’ need and aim to
do so in a way that fits seamlessly into their lives This helps us to build long-lasting relationships with our customers .We
effectively implement the Fair Practice Code for redressal of customer grievances. Apart from providing loans, we help
our customers with settlement of insurance claims, renewal of insurance policy, obtaining of permits from RTOs, tie-up
with service centers for refurbishing vehicles. The Company has entered into agreement with fuel marketing companies
viz. HPCL and BPCL enabling customers to purchase fuel on credit from nation-wide network of dealers of HPCL and
BPCL. We have entered into arrangements with vendors for providing credit facilities to Company’s customers for tyre
replacements. The Company also provides working capital for road tax,engine repairs/replacement of parts of the vehicles
financed by the Company.We also sponsor activities for welfare of customers and their families. We work for growth
of our customers and we focus on mutual faith and trust with our customers. We have entered into memorandum of
understanding with Indian Oil Corporation Ltd (IOCL) to enable our customers to have an efficient way of purchasing
auto fuels like diesel,petrol,lubricants on credit through wide network of IOCL.

BUSINESS RESPONSIBILTY PARAMETER INDEX

Principle-Wise Performance
Principle 1
1 Does the policy relating to ethics, bribery and Yes it covers only the Company.
corruption cover only the company? Yes/ No.
Does it extend to the Group/Joint Ventures/
Suppliers/ Contractors/NGOs /Others?
2 How many stakeholder complaints have been Nil
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.
Principle 2
1 List up to 3 of your products or services whose The Company is not engaged in manufacture of any goods. It is engaged
design has incorporated social or environmental in the business of financing of pre-owned and new commercial vehicles.
concerns, risks and/or opportunities.
2 For each such product, provide the following Not Applicable
details in respect of resource use (energy, water, raw
material etc.) per unit of product(optional):
a. Reduction during sourcing/production/ distribution
achieved since the previous year throughout the
value chain?
b. Reduction during usage by consumers (energy,
water) has been achieved since the previous year?
3 Does the company have procedures in place for Not Applicable
sustainable sourcing (including transportation)?
a. If yes, what percentage of your inputs was sourced
sustainably? Also, provide details thereof, in
about 50 words or so.
4 Has the company taken any steps to procure goods The Company provides services relating to vehicle financing through
and services from local & small producers, including its branches and rural service centers. As a matter of practice, we give
communities surrounding their place of work? preference for recruitment of local persons in our branches.
(a) If yes, what steps have been taken to improve
their capacity and capability of local and small
vendors?
5 Does the company have a mechanism to recycle Not Applicable
products and waste? If yes what is the percentage
of recycling of products and waste (separately as
<5%, 5-10%, >10%). Also, provide details thereof,
in about 50 words or so
Principle 3
1 Please indicate the Total number of employees. 28045
2 Please indicate the Total number of employees hired Not Applicable
on temporary/contractual/casual basis.
3 Please indicate the Number of permanent women 1326
employees
4 Please indicate the Number of permanent employees 22
with disabilities
5 Do you have an employee association that is No
recognized by management
6 What percentage of your permanent employees is Not Applicable
members of this recognized employee association?

7 Please indicate the Number of complaints relating
to child labour, forced labour, involuntary labour,
sexual harassment in the last financial year and
pending, as on the end of the financial year.
Child labour/forced labour/involuntary labour Nil
Sexual harassment Nil
Discriminatory employment NIL
8 What percentage of your under mentioned 42.70% employees were given safety and skill training programmes in
employees were given safety & skill up-gradation the last year
training in the last year?
(a) Permanent Employees 41.20%
(b) Permanent Women Employees 1.5%
(c) Casual/Temporary/Contractual Employees -
-
(d) Employees with Disabilities
Principle 4
1 Has the company mapped its internal and external Yes
stakeholders? Yes/No
2 Out of the above, has the company identified Yes
the disadvantaged, vulnerable & marginalized
stakeholders?
3 Are there any special initiatives taken by the Yes, please refer to the Principle 4 of the Report
company to engage with the disadvantaged,
vulnerable and marginalized stakeholders. If so,
provide details thereof, in about 50 words or so.
Principle 5
1 Does the policy of the company on human rights Yes, the policy extends only to the Company.
cover only the company or extend to the Group/ Joint
Ventures/Suppliers/Contractors/NGOs/ Others?
2 How many stakeholder complaints have been No complaint was received for human rights violation during the last
received in the past financial year and what percent financial year.
was satisfactorily resolved by the management?
Principle 6
1 Does the policy related to Principle 6 cover only the Yes, the policy extends only to the Company.
company or extends to the Group /Joint Ventures/
Suppliers/ Contractors /NGOs / others.
2 Does the company have strategies/ initiatives to Yes we have environment policy in place. We have taken green initiative
address global environmental issues such as climate through paperless office etc.
change, global warming, etc? Y/N. If yes, please give
hyperlink for webpage etc.
3 Does the company identify and assess potential No
environmental risks? Y/N
4 Does the company have any project related to Clean No
Development Mechanism? If so, provide details
thereof, in about 50 words or so. Also, if Yes, whether
any environmental compliance report is filed?
5 Has the company undertaken any other initiatives No
on – clean technology, energy efficiency, renewable
energy, etc. Y/N. If yes, please give hyperlink for
web page etc.

6 Are the Emissions/Waste generated by the company Not Applicable.

within the permissible limits given by CPCB/SPCB
for the financial year being reported?
7 Number of show cause/legal notices received from Nil
CPCB/SPCB which are pending (i.e. not resolved to
satisfaction) as on end of Financial Year.
Principle 7
1 Is your company a member of any trade and Yes, we are member of Finance Industry Development Council (FIDC),
chamber or association? If Yes, Name only those Confederation of Indian Industries (CII) and Federation of Indian
major ones that your business deals with: Chambers of Commerce and Industry (FICCI) and various other state/
city level associations.
2 Have you advocated/lobbied through above Yes, Governance and Administration
associations for the advancement or improvement of
public good? Yes/No; if yes specify the broad
areas ( drop box: Governance and Administration,
Economic Reforms, Inclusive Development Policies,
Energy security, Water, Food Security, Sustainable
Business Principles, Others)
Principle 8
1 Does the company have specified programmes/ Yes, please refer to the Principle 8 of the Report
initiatives/projects in pursuit of the policy related to
Principle 8? If yes details thereof.
2 Are the programmes/projects undertaken through Yes, the projects are undertaken through coordination and collaboration
in-house team / own foundation/external NGO/ between in-house team and external NGOs.
government structures/any other organization?
3 Have you done any impact assessment of your No
initiative
4 What is your Companys’ Direct contribution to Yes, please refer to the Section B of the Report
community development projects- Amount in INR
and the details of the projects undertaken?
5 Have you taken steps to ensure that this community Yes,we actively encourage participation of stakeholders in various
development initiative is successfully adopted by programmes. This includes both volunteering and proactive
the community? Please explain in 50 words, or so participation.
Principle 9
1 What percentages of customer complaints / 1.35% Customer complaints are pending as on the end of financial year.
consumer cases are pending as on the end of
financial year?
2 Does the company display product information on Not Applicable
the product label, over and above what is mandated
as per local laws? Yes/No/N.A. /Remarks(additional
information)
3 Is there any case filed by any stakeholder against No
the company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
behaviour during the last five years and pending
as on end of financial year. If so, provide details
thereof, in about 50 words or so
4 Did your company carry out any consumer survey/ No
consumer satisfaction trends?

SECRETARIAL COMPLIANCE REPORT OF SHRIRAM TRANSPORT FINANCE COMPANY LIMITED FOR THE
YEAR ENDED 31ST MARCH, 2020
I, P. Sriram, Proprietor of P. Sriram & Associates have examined:
(a) All the documents and records made available to us and explanation provided by Shriram Transport Finance Company
Limited (“the listed entity”),
(b) The filings/ submissions made by the listed entity to the stock exchanges,
(c) Website of the listed entity,
(d) Any other document/ filing, as may be relevant, which has been relied upon to make this certification, for the year ended 31st
March, 2020 (“Review Period”) in respect of compliance with the provisions of:
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued
thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the Regulations, circulars,
guidelines issued thereunder by the Securities and Exchange Board of India (“SEBI”);
The specific Regulations, whose provisions and the circulars/ guidelines issued thereunder, have been examined, including:-
(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, (Not Applicable
to the company during the review period);
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018;
(e) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not Applicable to the company
during the review period);
(f) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(g) Securities and Exchange Board of India(Issue and Listing of Non-Convertible and Redeemable Preference Shares)
Regulations,2013(Not Applicable to the company during the review period);
(h) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(i) Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993;
(j) Securities and Exchange Board of India (Depositories and Participant) Regulations,2018; and based on the above examination,
I hereby report that, during the Review Period:
(a) Th
e listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder,
except in respect of matters specified below:-
Sr. Compliance Requirement (Regulations/ Deviations Observations/ Remarks of the

No circulars / guidelines including specific clause) Practicing Company Secretary
1 NIL NIL NIL

(b) The listed entity has maintained proper records under the provisions of the above Regulations and circulars/ guidelines
issued thereunder insofar as it appears from my examination of those records.
(c) The following are the details of actions taken against the listed entity/ its promoters/ directors/ material subsidiaries either
by SEBI or by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through various circulars)
under the aforesaid Acts/ Regulations and circulars/ guidelines issued thereunder:
Sr. Action taken by Details of violation Details of action taken E.g. fines, Observations/ remarks of the
No. warning letter, debarment, etc. Practicing Company Secretary, if any.
NIL NIL NIL NIL NIL
(d) The listed entity has taken the following actions to comply with the observations made in previous reports:
Sr. Observations of the Observations made in the Actions taken by the Comments of the
No. Practicing Company secretarial compliance report listed entity, if any Practicing Company
Secretary in the previous for the year ended… Secretary on the actions
reports (The years are to be mentioned) taken by the listed entity
NIL NIL NIL NIL NIL
For P. Sriram & Associates
Sriram Parthasarathy
FCS No.: 4862
Chennai C P No.: 3310
June 11, 2020 UDIN : F004862B000333971

Financial Section
Standalone accounts
INDEPENDENT AUDITOR’S REPORT 85

BALANCE SHEET 94
STATEMENT OF PROFIT AND LOSS 95
STATEMENT OF CHANGES IN EQUITY 96
CASH FLOW STATEMENT 98
NOTES 100
Consolidated accounts 205

INDEPENDENT AUDITOR’S REPORT
Standalone Accounts
To the Members of our opinion thereon, and we do not provide a separate opinion
Shriram Transport Finance Company Limited on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our
Report on the Audit of the Standalone report.
Financial Statements Impairment Loss Allowance of loans and advances
Opinion Impairment loss allowance of loans and advances
We have audited the accompanying standalone financial (“Impairment loss allowance”) is a Key Audit Matter as the
statements of Shriram Transport Finance Company Limited Company has significant credit risk exposure considering the
(“the Company”), which comprise the Balance Sheet as at large loan portfolio across a wide geographical range. The value
March 31, 2020, the Statement of Profit and Loss (including of loans and advances on the balance sheet is significant and
Other Comprehensive Income), the Statement of Changes there is a high degree of complexity and judgment involved
in Equity and the Statement of Cash Flows for the year then in estimating individual and collective credit impairment
ended, and notes to the standalone financial statements provisions, write-offs against these loans and to additionally
including a summary of significant accounting policies and determine the potential impact of unprecedented COVID 19
other explanatory information (hereinafter referred to as pandemic on asset quality and provision of the Company. The
“standalone financial statements”). Company’s model to calculate expected credit loss (“ECL”) is
In our opinion and to the best of our information and inherently complex and judgment is applied in determining
according to the explanations given to us, the aforesaid the correct construction of the three-stage impairment
standalone financial statements give the information required model (“ECL Model”) including the selection and input of
by the Companies Act, 2013 (“the Act”) in the manner so forward looking information. ECL provision calculation
required and give a true and fair view in conformity with the require the use of large volumes of data. The completeness
accounting principles generally accepted in India including and reliability of data can significantly impact accuracy of the
the Indian Accounting Standards (“Ind AS”) prescribed modeled impairment provisions. The accuracy of data flows
under section 133 of the Act, of the state of affairs of the and the implementation of related controls are critical for the
Company as at March 31, 2020, its profit (including other integrity of the estimated impairment provisions.
comprehensive income), changes in equity and its cash flows Audit Procedures included but were not limited to the
for the year ended on that date. following:
Basis for Opinion We have started our audit procedures with understanding of
We conducted our audit in accordance with Standards on the internal control environment related to Impairment loss
Auditing (SAs) specified under section 143(10) of the Act. allowance. Our procedures over internal controls focused on
Our responsibilities under those Standards are further recognition and measurement of impairment loss allowance.
described in the Auditor’s Responsibilities for the Audit of We assessed the design and tested the operating effectiveness
the Standalone Financial Statements section of our report. of the selected key controls implemented by the Company.
We are independent of the Company in accordance with We also assessed whether the impairment methodology
the Code of Ethics issued by the Institute of Chartered used by the Company is in accordance with the assumptions
Accountants of India (“ICAI”) together with the ethical and methodology approved by the Board of Directors of the
requirements that are relevant to our audit of the standalone Company which is based on and in compliance with Ind AS
financial statements under the provisions of the Act and 109 “Financial Instruments”. Particularly we assessed the
Rules thereunder, and we have fulfilled our other ethical approach of the Company regarding definition of Default,
responsibilities in accordance with these requirements and Probability of Default, Loss Given Default and incorporation
the Code of Ethics. We believe that the audit evidence we of forward-looking information for the calculation of ECL.
have obtained is sufficient and appropriate to provide a basis For loans and advances which are assessed for impairment
for our opinion on the standalone financial statements. on a portfolio basis we performed particularly the following
Key Audit Matters procedures:
Key audit matters are those matters that, in our professional • We tested the reliability of key data inputs and related
judgment, were of most significance in our audit of the management controls;
standalone financial statements of the current year. These • We checked the stage classification as at the balance sheet
matters were addressed in the context of our audit of the date as per the definition of Default of the Company;
standalone financial statements as a whole, and in forming

INDEPENDENT Auditor’s Report
(Contd.)
• We validated the ECL Model and its calculation by Further, the extent to which the COVID-19 pandemic will
involving our Information Technology Expert; impact the Company’s financial performance is dependent
• We have also calculated the ECL provision manually for on future developments, which are highly uncertain. Our
selected samples; and opinion is not modified in respect of this matter.
• We have assessed the assumptions made by the Other Information
Company in making accelerated provision considering The Company’s Board of Directors is responsible for the
forward looking information and based on an event in a other information. The other information comprises the
particular geographical range. information included in the Management Discussion and
• We have reviewed the process of the Company to grant Analysis, Director’s Report and Corporate Governance
moratorium to the borrowers as per the Regulatory Report, but does not include the standalone financial
Package announced by the Reserve Bank of India statements, consolidated financial statements and our
(RBI). Further, we have relied on the assumption of the auditor’s report thereon.
management that there will be no significant increase Our opinion on the standalone financial statements does not
in the credit risk in the cases where moratorium is cover the other information and we do not express any form
given and that the staging based on the days past due of assurance conclusion thereon.
(DPD) will be considered as per the RBI COVID-19 In connection with our audit of the standalone financial
Regulatory Package. We have tested on samples basis statements, our responsibility is to read the other information
the DPD freeze for cases where moratorium is provided and, in doing so, consider whether the other information
and not provided in accordance with RBI COVID-19 is materially inconsistent with the standalone financial
Regulatory Package; statements or our knowledge obtained in the audit or
• With respect to additional provision made by the otherwise appears to be materially misstated.
Company on account of the impact of COVID-19 If, based on the work we have performed, we conclude that
pandemic, we broadly reviewed the underlying there is a material misstatement of this other information, we
assumptions and estimates used by the management are required to report that fact. We have nothing to report in
for the same but as the extent of impact is dependent this regard.
on future developments which are highly uncertain,
Responsibilities of Management and Those Charged with
we have primarily relied on those assumptions and
Governance for the Standalone Financial Statements
estimates. These assumptions and estimates are a subject
The Company’s Board of Directors is responsible for the
matter of periodic review by the Company and.
matters stated in section 134(5) of the Act with respect to
• We have checked the provision on Loan Assets as
the preparation of these standalone financial statements
per IRACP norms as required under RBI circular
that give a true and fair view of the financial position,
dated March 13, 2020. We have checked the DPD and
financial performance(including other comprehensive
provision in accordance with the RBI regulations in
income), changes in equity and cash flows of the Company in
that regard further considering the Regulatory Packages
accordance with the accounting principles generally accepted
issued by RBI dated March 27, 2020 and May 23, 2020
in India, including Ind AS prescribed under section 133 of the
and RBI circular dated April 17, 2020.
Act, read with the Companies (Indian Accounting Standards)
For loans and advances which are written off during the year Rules, 2015, as amended. This responsibility also includes
under audit, we read and understood the methodology and maintenance of adequate accounting records in accordance
policy laid down and implemented by the Company in this with the provisions of the Act for safeguarding of the assets
regards along with its compliance on sample basis. of the Company and for preventing and detecting frauds and
Emphasis of Matter other irregularities; selection and application of appropriate
We draw attention to Note 62 to the standalone financial accounting policies; making judgments and estimates that
statements which describes the classification of accounts as are reasonable and prudent; and design, implementation
on March 31, 2020 with respect to the accounts which were and maintenance of adequate internal financial controls,
overdue but standard as on February 29, 2020 and to whom that were operating effectively for ensuring the accuracy
moratorium benefit has been granted. The staging of those and completeness of the accounting records, relevant to the
accounts under Ind AS as on March 31, 2020 is based on the preparation and presentation of the standalone financial
days past due status as on February 29, 2020 in accordance statements that give a true and fair view and are free from
with the Reserve Bank of India COVID-19 regulatory package. material misstatement, whether due to fraud or error.

(Contd.) Standalone Accounts
In preparing the standalone financial statements, management significant doubt on the Company’s ability to continue
is responsible for assessing the Company’s ability to continue as a going concern. If we conclude that a material
as a going concern, disclosing, as applicable, matters related uncertainty exists, we are required to draw attention
to going concern and using the going concern basis of in our auditor’s report to the related disclosures in the
accounting unless management either intends to liquidate standalone financial statements or, if such disclosures
the Company or to cease operations, or has no realistic are inadequate, to modify our opinion. Our conclusions
alternative but to do so. are based on the audit evidence obtained up to the
Those Board of Directors are also responsible for overseeing date of our auditor’s report. However, future events or
the Company’s financial reporting process. conditions may cause the Company to cease to continue
Auditor’s Responsibilities for the Audit of the Standalone as a going concern.
Financial Statements • Evaluate the overall presentation, structure and content
Our objectives are to obtain reasonable assurance about of the standalone financial statements, including the
whether the standalone financial statements as a whole disclosures, and whether the standalone financial
are free from material misstatement, whether due to fraud statements represent the underlying transactions and
or error, and to issue an auditor’s report that includes our events in a manner that achieves fair presentation.
opinion. Reasonable assurance is a high level of assurance, We communicate with those charged with governance
but is not a guarantee that an audit conducted in accordance regarding, among other matters, the planned scope and
with SAs will always detect a material misstatement when it timing of the audit and significant audit findings, including
exists. Misstatements can arise from fraud or error and are any significant deficiencies in internal control that we identify
considered material if, individually or in the aggregate, they during our audit.
could reasonably be expected to influence the economic We also provide those charged with governance with a
decisions of users taken on the basis of this standalone statement that we have complied with relevant ethical
financial statements. As part of an audit in accordance requirements regarding independence, and to communicate
with SAs, we exercise professional judgment and maintain with them all relationships and other matters that may
professional skepticism throughout the audit. We also: reasonably be thought to bear on our independence, and
• Identify and assess the risks of material misstatement where applicable, related safeguards.
of the standalone financial statements, whether due to From the matters communicated with those charged with
fraud or error, design and perform audit procedures governance, we determine those matters that were of most
responsive to those risks, and obtain audit evidence significance in the audit of the standalone financial statements
that is sufficient and appropriate to provide a basis of the current year and are therefore the key audit matters.
for our opinion. The risk of not detecting a material We describe these matters in our auditor’s report unless law
misstatement resulting from fraud is higher than for or regulation precludes public disclosure about the matter or
one resulting from error, as fraud may involve collusion, when, in extremely rare circumstances, we determine that a
forgery, intentional omissions, misrepresentations, or matter should not be communicated in our report because
the override of internal control. the adverse consequences of doing so would reasonably be
• Obtain an understanding of internal control relevant to expected to outweigh the public interest benefits of such
the audit in order to design audit procedures that are communication.
appropriate in the circumstances. Under section 143(3) Report on Other Legal and Regulatory Requirements
(i) of the Act, we are also responsible for expressing our
(1) As required by the Companies (Auditor’s Report) Order,
opinion on whether the Company has adequate internal
2016 (“the Order”) issued by the Central Government
financial controls with reference to financial statements
of India in terms of section 143(11) of the Act, we give
in place and the operating effectiveness of such controls.
in “Annexure 1”, a statement on the matters specified in
• Evaluate the appropriateness of accounting policies paragraphs 3 and 4 of the Order, to the extent applicable.
used and the reasonableness of accounting estimates
(2) As required by section 143(3) of the Act, we report that:
and related disclosures made by management.
a. We have sought and obtained all the information
• Conclude on the appropriateness of management’s use of
and explanations which to the best of our
the going concern basis of accounting and, based on the
knowledge and belief were necessary for the
audit evidence obtained, whether a material uncertainty
purposes of our audit;
exists related to events or conditions that may cast

(Contd.)
b. In our opinion, proper books of account as required In our opinion and to the best of our information
by law have been kept by the Company so far as it and according to the explanations given to us, the
appears from our examination of those books; remuneration paid/ provided by the Company to
c. The Balance Sheet, the Statement of Profit and Loss its directors during the year is in accordance with
(including Other Comprehensive Income), the the provisions of section 197 of the Act;
Statement of Changes in Equity and the Statement h. With respect to the other matters to be included in
of Cash Flows dealt with by this report are in the Auditor’s Report in accordance with Rule 11 of
agreement with the books of account; the Companies (Audit and Auditors) Rules, 2014,
d. In our opinion, the aforesaid standalone financial in our opinion and to the best of our information
statements comply with the Ind AS prescribed and according to the explanations given to us:
under section 133 of the Act read with the (i) The Company has disclosed the impact of
Companies (Indian Accounting Standards) Rules, pending litigations on its financial position
2015, as amended; in its standalone financial statements – Refer
e. On the basis of the written representations received Note 49 on Contingent Liabilities to the
from the directors as on March 31, 2020, and taken standalone financial statements;
on record by the Board of Directors, none of the (ii) The Company has made provision, as required
directors is disqualified as on March 31, 2020 from under the applicable law or accounting
being appointed as a director in terms of section standards, for material foreseeable losses,
164(2) of the Act; if any, on long-term contracts including
f. With respect to the adequacy of the internal derivative contracts – Refer Note 10 to the
financial controls with reference to financial standalone financial statements;
statements of the Company and the operating (iii) There has been no delay in transferring
effectiveness of such controls, refer to our separate amounts, required to be transferred, to the
report in “Annexure 2”; Investor Education and Protection Fund by
g. With respect to the other matter to be included the Company.
in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act:
For Haribhakti & Co. LLP For Pijush Gupta & Co.
Chartered Accountants Chartered Accountants
ICAI Firm Registration No. 103523W/W100048 ICAI Firm Registration No. 309015E
Sumant Sakhardande Sangeeta Gupta
Partner Partner
Membership No. 034828 Membership No. 064225
UDIN: 20034828AAAACL9811 UDIN: 20064225AAAAAX2386
Place: Mumbai Place: Gurugram
Date: June 10, 2020 Date: June 10, 2020

ANNEXURE 1
TO THE INDEPENDENT AUDITOR’S REPORT Standalone Accounts
Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section in the Independent Auditor’s
Report of even date to the members of Shriram Transport Finance Company Limited on the standalone financial statements for
the year ended March 31, 2020
Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalone financial statements
of the Company and taking into consideration the information and explanations given to us and the books of account and other
records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
(b) During the year, the fixed assets of the Company have been physically verified by the management and no material
discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having
regard to the size of the Company and the nature of its assets.
(c) Based on the examination of the registered sale deed/transfer deed and other relevant records evidencing title / possession
provided to us, we report that, the title deeds of all the immovable properties comprising of land and buildings which
are freehold other than self constructed assets included in Property, Plant and Equipment, are held in the name of the
Company as at the balance sheet date.
(ii) The Company is in the business of providing services and does not have any inventory. Accordingly, clause 3(ii) of the Order
is not applicable.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or
other parties covered in the register maintained under section 189 of the Act. Accordingly, clause 3(iii) of the Order is not
applicable to the Company.
(iv) The Company has complied with the provisions of sections 185 and 186(1) of the Act in respect of grant of loans, making
investments and providing guarantees and securities, as applicable. Further, the provisions of section 186, except for section
186(1), of the Act are not applicable to the Company as it is engaged in the business of financing.
(v) In our opinion, the Company has complied with the directives issued by Reserve Bank of India, the provisions of sections
73 to 76 of the Act and the rules framed there under with regard to the acceptance of deposits. Further, no Order has been
passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
(vi) The Central Government has not prescribed the maintenance of cost records for any of the products of the Company under
sub-section (1) of section 148 of the Act and the rules framed there under.
(vii) (a) The Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident
fund, employees’ state insurance, income tax, goods and services tax (GST), cess and any other material statutory dues
applicable to it. As informed, provisions of Custom Duty are not applicable to the Company. During the year 2017-18, sales
tax, value added tax, service tax and duty of excise subsumed in GST and are accordingly reported under GST.
(b) No undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, GST, customs
duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more
than six months from the date they became payable.
(c) As informed, the provisions of customs duty and excise duty is not applicable to the Company. The dues outstanding
with respect to, income tax, sales tax, service tax, value added tax and GST on account of any dispute, are as follows:
Name of the Nature of dues Amount Period to which the amount Forum where dispute is
statute (Rs. In crores) relates pending
Income Tax Income Tax 13.44 A.Y. 2017-18 CIT (Appeals)
Act,1961 demands
Income Tax Income Tax 26.10 A.Y. 2016-17 Assessing Officer
Act,1961 demands
Income Tax Income Tax 5.46 A.Y. 2014-15 Madras High Court
Act,1961 demands
Act,1961 demands
Income Tax Income Tax 1.80 A.Y. 2014-15 CIT (Appeals)
Act,1961 demands
Act,1961 demands
Act,1961 demands

ANNEXURE 1
TO THE INDEPENDENT AUDITOR’S REPORT (Contd.)
Act,1961 demands
Act,1961 demands
Act,1961 demands
Act,1961 demands
Act,1961 demands
Act,1961 demands
Act,1961 demands
Act,1961 demands
Finance Act, 1994 Service tax on 212.30 F.Y. 2003-04 to 2009-10 CESTAT (Custom, Excise
(Service tax) hire purchase and Service tax appellate
and lease tribunal)
transaction
Finance Act, 1994 Service tax 192.88 F.Y. 2008-09 to 2014-2015 CESTAT (Custom, Excise
(Service tax) demand on and Service tax appellate
securitisation tribunal)
collection
commission
Maharashtra Value added tax 0.00# F.Y. 2005-06 Maharashtra Sales Tax
Value Added Tax Tribunal
Maharashtra Value added tax 0.00# F.Y. 2006-07 Deputy Commissioner
Value Added Tax of Sales Tax - Appeals –
Mumbai
Maharashtra Value added tax 5.40 F.Y. 2007-08 to 2013-14 Maharashtra Sales Tax
Value Added Tax Tribunal
Maharashtra Value added tax 0.79 F.Y. 2014-15 Joint Commissioner of
Value Added Tax Sales tax
Maharashtra Value added tax 0.21 F.Y. 2012-13 to 2013-14 Deputy Commissioner
Value Added Tax of Sales Tax - Appeals -
Mumbai
Andhra Pradesh Value added tax 3.48 F.Y. 2005-06 to 2008-09 High court of Telangana
Value Added Tax
Andhra Pradesh Value added tax 3.27 F.Y 2009-10 to 2010-11 and 1st High court of Telangana
Value Added Tax April 2011 to 31st August 2012
Andhra Pradesh Value added tax 0.12 F.Y. 2010-11 to 2012-13 High court of Telangana
Value Added Tax
Rajasthan Value Value added tax 1.16 F.Y. 2006-07 to 2011-12 High Court of Rajasthan
Added Tax
Rajasthan Value Value added tax 1.59 F.Y. 2012-13 to 2015-16 And Rajasthan Tax Tribunal,
Added Tax 1st April, 2016 to 4th Nov Ajmer
2016

ANNEXURE 1
TO THE INDEPENDENT AUDITOR’S REPORT (Contd.) Standalone Accounts
Karnataka Value Value added tax 8.07 F.Y. 2010-11 to 2016-17 High court of Karnataka
Added Tax
Orissa Value Value added tax 0.09 F.Y. 2008-09 to 2012-13 Orissa Tax Tribunal
Added Tax
Telangana Value Value added tax 9.81 F.Y. 2013-14 to 2016-17 and Commercial Tax officer,
Added Tax April 17 to June 17 Secunderabad
*Above amounts are net of amount paid under protest, wherever paid.
# Amounts less than Rs. 1.00 lac are presented as Rs. 0.00 crores
(viii) During the year, the Company has not defaulted in repayment of loans or borrowings to financial institutions, banks or dues
to debenture holders. The Company has not taken any loan or borrowing from government.
(ix) The Company did not raise moneys by way of initial public offer or further public offer of equity shares during the year. In
our opinion, monies raised by the Company by way of debt instruments and term loans were applied for the purposes for
which those were obtained, though idle/surplus funds which were not required for immediate utilisation were gainfully
invested in liquid assets payable on demand.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally
accepted auditing practices in India, we have neither come across any instance of fraud by the Company or any fraud on the
Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance
by the management except three fraud cases amounting to Rs. 0.18 Crores where employees of the Company has conducted
Cheating and Forgery.
(xi) Managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, clause 3(xii) of the Order is not applicable to the Company.
(xiii) All transactions entered into by the Company with the related parties are in compliance with sections 177 and 188 of Act,
where applicable, and the details have been disclosed in the standalone Ind AS financial statements as required by the
applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures
during the year. Therefore, clause 3(xiv) of the Order is not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with them during the year
and hence provisions of section 192 of the Act are not applicable.
(xvi) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and the registration
has been obtained by the Company.
Partner Partner

ANNEXURE 2
to the independent auditor’s report
[Referred to in paragraph 2(f) under ‘Report on Other Legal and about whether adequate internal financial controls with
Regulatory Requirements’ section in our Independent Auditor’s reference to financial statements was established and
Report of even date to the members of Shriram Transport maintained and if such controls operated effectively in all
Finance Company Limited on the standalone financial
material respects.
statements for the year ended March 31, 2020]
Our audit involves performing procedures to obtain audit
Report on the Internal Financial Controls with reference
evidence about the adequacy of the internal financial controls
to Financial Statements under clause (i) of sub-section 3 of
with reference to financial statements and their operating
section 143 of the Companies Act, 2013 (“the Act”)
effectiveness.
We have audited the internal financial controls with reference Our audit of internal financial controls with reference to
to financial statements of Shriram Transport Finance financial statements included obtaining an understanding
Company Limited (“the Company”) as of March 31, 2020 of internal financial controls with reference to financial
in conjunction with our audit of the standalone financial statements, assessing the risk that a material weakness
statements of the Company for the year ended on that date. exists, and testing and evaluating the design and operating
Management’s Responsibility for Internal Financial Controls effectiveness of internal controls based on the assessed risk.
The Company’s management is responsible for establishing The procedures selected depend on the auditor’s judgement,
and maintaining internal financial controls based on the including the assessment of the risks of material misstatement
internal control with reference to financial statements of the financial statements, whether due to fraud or error.
criteria established by the Company considering the We believe that the audit evidence we have obtained is
essential components of internal control stated in the sufficient and appropriate to provide a basis for our audit
Guidance Note on Audit of Internal Financial Controls Over opinion on the Company’s internal financial controls with
Financial Reporting (the “Guidance Note”) issued by the reference to financial statements.
Institute of Chartered Accountants of India (“ICAI”). These Meaning of Internal Financial Controls with reference to
responsibilities include the design, implementation and Financial Statements
maintenance of adequate internal financial controls that were
A Company’s internal financial control with reference
operating effectively for ensuring the orderly and efficient
to financial statements is a process designed to provide
conduct of its business, including adherence to Company’s
reasonable assurance regarding the reliability of financial
policies, the safeguarding of its assets, the prevention and
reporting and the preparation of financial statements for
detection of frauds and errors, the accuracy and completeness
external purposes in accordance with generally accepted
of the accounting records, and the timely preparation of
accounting principles. A Company’s internal financial
reliable financial information, as required under the Act.
control with reference to financial statements includes those
Auditors’ Responsibility policies and procedures that (1) pertain to the maintenance
Our responsibility is to express an opinion on the Company’s of records that, in reasonable detail, accurately and fairly
internal financial controls with reference to financial reflect the transactions and dispositions of the assets of the
statements based on our audit. We conducted our audit in Company;(2)provide reasonable assurance that transactions
accordance with the Guidance Note and the Standards on are recorded as necessary to permit preparation of financial
Auditing specified under section 143(10) of the Act to the statements in accordance with generally accepted accounting
extent applicable to an audit of internal financial controls, principles, and that receipts and expenditures of the Company
both issued by the ICAI. Those Standards and the Guidance are being made only in accordance with authorisations
Note require that we comply with ethical requirements and of management and directors of the Company; and (3)
plan and perform the audit to obtain reasonable assurance provide reasonable assurance regarding prevention or timely

ANNEXURE 2
to the independent auditor’s report (Contd.) Standalone Accounts
detection of unauthorised acquisition, use, or disposition of statements may become inadequate because of changes in
the Company’s assets that could have a material effect on the conditions, or that the degree of compliance with the policies
financial statements. or procedures may deteriorate.
Inherent Limitations of Internal Financial Controls with Opinion
reference to Financial Statements In our opinion, the Company has, in all material respects,
Because of the inherent limitations of internal financial adequate internal financial controls with reference to
controls with reference to financial statements, including the financial statements and such internal financial controls with
possibility of collusion or improper management override reference to financial statements were operating effectively
of controls, material misstatements due to error or fraud as at March 31, 2020, based on the internal control with
may occur and not be detected. Also, projections of any reference to financial statements criteria established by the
evaluation of the internal financial controls with reference to Company considering the essential components of internal
financial statements to future periods are subject to the risk controls stated in the Guidance Note issued by the ICAI.
that the internal financial controls with reference to financial
Partner Partner

Balance Sheet
as at March 31, 2020
(Rs. in crores)
As at As at
Particulars Notes March 31, 2020 March 31, 2019
I ASSETS
1 Financial assets
Cash and cash equivalents 8 3,088.99 1,029.14
Bank balance other than above 9 4,225.93 2,952.33
Derivative financial instruments 10 758.73 21.72
Receivables 11
(I) Trade receivables 10.50 8.48
(II) Other receivables 5.64 19.94
Loans 12 102,231.63 96,751.49
Investments 13 2,798.48 3,999.07
Other financial assets 14 45.15 36.88
2 Non-financial assets
Current tax assets (net) 15 249.10 106.58
Deferred tax assets (net) 43 62.50 75.70
Investment property 16 2.03 2.06
Property, plant and equipment 17 149.88 143.46
Right-of-use assets 18 327.84 -
Other intangible assets 19 2.67 1.97
Other non-financial assets 20 169.57 143.66
Total assets 114,128.64 105,292.48
II LIABILITIES AND EQUITY
Liabilities
1 Financial liabilities
Derivative financial instruments 10 - 83.42
Payables
(I) Trade payables 21
(i) t otal outstanding dues of micro enterprises and small enterprises 0.40 -
(ii) t otal outstanding dues of creditors other than micro enterprises and small 143.44 133.46
enterprises
(II) Other payables
(i) t otal outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises and small
1.13 2.72
enterprises
Debt securities 22 34,266.96 34,181.76
Borrowings (other than debt securities) 23 42,474.60 37,189.30
Deposits 24 11,960.12 10,341.46
Subordinated liabilities 25 5,670.07 6,201.88
Other financial liabilities 26 912.32 1,016.48
Lease liabilities 18 362.81 -
2 Non-financial liabilities
Current tax liabilities (net) 27 102.02 102.97
Provisions 28 146.33 133.26
Other non-financial liabilities 29 83.28 69.49
Total liabilities 96,123.48 89,456.20
3 Equity
Equity share capital 30 226.88 226.90
Other equity 31 17,778.28 15,609.38
Total equity 18,005.16 15,836.28
Total liabilities and equity 114,128.64 105,292.48
See accompanying notes forming part of the financial statements.
As per our report of even date

For Haribhakti & Co. LLP For Pijush Gupta & Co. For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Shriram Transport Finance Company Limited
Sumant Sakhardande Sangeeta Gupta S. Lakshminarayanan Umesh Revankar
Partner Partner Chairman Managing Director & CEO
Membership No. 034828 Membership No. 064225 DIN: 02808698 DIN: 00141189
Mumbai Gurugram New Delhi Mumbai
June 10, 2020 June 10, 2020 June 10, 2020 June 10, 2020
Parag Sharma Vivek M. Achwal

Executive Director & CFO Company Secretary
Mumbai Mumbai
June 10, 2020 June 10, 2020

Statement of Profit and Loss
for the year ended March 31, 2020 Standalone Accounts
(Rs. in crores)
Year ended Year ended
Revenue from operations
(i) Interest income 32 16,267.46 15,335.69
(ii) Dividend income 0.19 4.99
(iii) Rental income 0.22 0.22
(iv) Fee and commission income 33 194.97 126.60
(v) Net gain on fair value changes 34 - -
(vi) Other operating income 35 99.52 61.65
(I) Total Revenue from operations 16,562.36 15,529.15
(II) Other income 36 20.27 27.51
(III) Total Income (I + II) 16,582.63 15,556.66
Expenses
(i) Finance cost 37 8,270.26 7,511.26
(ii) Fee and commission expense 38 56.88 62.19
(iii) Net loss on fair value changes 34 6.75 2.58
(iv) Impairment of financial instruments 39 2,794.88 2,382.26
(v) Employee benefits expenses 40 1,010.82 883.06
(vi) Depreciation, amortisation and impairment 41 141.05 42.97
(vii) Other expenses 42 863.32 894.07
(IV) Total Expenses 13,143.96 11,778.39
(V) Profit before exceptional items and tax (III - IV) 3,438.67 3,778.27
(VI) Exceptional items - -
(VII)Profit before tax (V+ VI) 3,438.67 3,778.27
(VIII)Tax Expense:
(1) Current tax 43 921.20 1,346.37
(2) Deferred tax 43 14.79 (22.27)
(3) Tax adjustment for earlier years 43 0.84 (109.82)
(IX) Profit for the year from continuing operations (VII - VIII) 2,501.84 2,563.99
(X) Profit for the year 2,501.84 2,563.99
(XI) Other comprehensive income
A (i) Items that will not be reclassified to profit or loss
Remeasurement gain/(loss) on defined benefit plan (6.33) (3.56)
(ii) Income tax relating to items that will not be reclassified to profit or loss 1.59 1.24
Subtotal (A) (4.74) (2.32)
B (i) Items that will be reclassified to profit or loss - -
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Subtotal (B) - -
Other comprehensive income (A + B) (4.74) (2.32)
(XII)Total Comprehensive income for the year (X + XI) 2,497.10 2,561.67
(XIII)Earnings per equity share
Basic (Rs.) 44 110.27 113.01
Diluted (Rs.) 44 110.27 113.01

Mumbai Mumbai
June 10, 2020 June 10, 2020

A. Equity share capital
96
Particulars Number of shares (Rs. in crores)
As at March 31, 2018 226,882,736 226.90

Changes in Equity share capital during the year - -
As at March 31, 2019 226,882,736 226.90
Changes in Equity share capital during the year - (0.02)
As at March 31, 2020 226,882,736 226.88
B. Other equity
Annual Report 2019-20

(Rs. in crores)
Reserves and Surplus Other Total
Particulars Statutory Capital Securities Debenture Capital General Retained comprehensive
Statement of
reserve reserve premium redemption redemption reserve earnings income-

account reserve reserve retirement
benefits
Balance as at April 01, 2018 2,654.55 27.62 1,754.81 216.59 53.88 1,813.91 6,829.82 (2.60) 13,348.58
Profit for the year - - - - - - 2,563.99 - 2,563.99
Other comprehensive income for the year - - - - - - - (2.32) (2.32)
Total comprehensive income for the year - - - - - - 2,563.99 (2.32) 2,561.67
Transferred to/from 514.00 - - 158.03 - 350.44 (1,022.47) - -
for the year ended March 31, 2020
Dividends (interim and final) - - - - - - (249.57) - (249.57)

Tax on dividend (interim and final) - - - - - - (51.30) - (51.30)
Balance as at March 31, 2019 3,168.55 27.62 1,754.81 374.62 53.88 2,164.35 8,070.47 (4.92) 15,609.38
Changes in Equity
B. Other equity (Contd.)
(Rs. in crores)
Particulars Statutory Capital Securities Debenture Capital General Retained comprehensive
Statement of

benefits
Transferred to/(from) 500.38 - - 235.79 - 250.19 (986.36) - -
Transfer from share forfeiture account - 0.02 - - - - - - 0.02
Dividends (interim and final) - - - - - - (272.26) - (272.26)
Tax on dividend (interim and final) - - - - - - (55.96) - (55.96)
for the year ended March 31, 2020 (Contd.)
See accompanying notes forming part of the financial statements

Changes in Equity


Mumbai Mumbai
June 10, 2020 June 10, 2020

97
Standalone Accounts
Cash Flow Statement
(Rs. in crores)
Particulars March 31, 2020 March 31, 2019
A. Cash flow from operating activities
Profit before tax 3,438.67 3,778.27
Depreciation, amortisation and impairment 141.05 42.97
Interest on income tax refund (5.80) (6.66)
Loss on sale of investments 0.12 -
Loss/(profit) on sale of fixed assets (net) (1.17) 0.51
Impairment on loans 2,748.87 2,450.51
Impairment on investments 42.22 (0.06)
Impairment on undrawn loan commitment 4.39 6.71
Impairment on other assets (0.60) (74.90)
Net (gain)/loss on fair value changes on investment 0.87 (0.52)
Net (gain)/loss on fair value changes on derivatives 5.88 3.10
Operating profit before working capital changes 6,374.50 6,199.93
Movements in working capital:
Decrease/(increase) in loans (8,229.03) (8,456.35)
(Increase)/decrease in investments 1,157.38 (1,657.13)
Decrease/(increase) in receivables 12.28 (10.98)
Decrease/(increase) in bank deposits (1,273.60) (368.49)
Decrease/(increase) in other financial assets (7.67) 75.49
Decrease/(increase) in other non-financial assets (28.09) (3.43)
Increase/(decrease) in payables 10.38 (86.31)
Increase/(decrease) in other financial liabilities (104.04) 126.22
Increase/(decrease) in non-financial liabilities 13.79 (3.83)
Increase/(decrease) in other provision 7.69 2.31
Cash generated from operations (2,066.41) (4,182.57)
Direct taxes paid (net of refunds) (1,065.03) (1,352.41)
Net cash flows from/(used in) operating activities (A) (3,131.44) (5,534.98)
B. Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets (57.80) (77.97)
Proceeds from sale of property, plant and equipment and intangible assets 2.60 1.83
Net cash flows from/(used in) investing activities (B) (55.20) (76.14)

Cash Flow Statement
for the year ended March 31, 2020 (Contd.) Standalone Accounts
(Rs. in crores)
C. Cash flow from financing activities
Derivatives (826.31) 64.46
Amount received from deposits received (including ICDs) 4,433.61 5,006.10
Repayment of deposits (2,940.82) (3,315.19)
Amount received from debt securities 13,085.18 9,057.53
Repayment of debt securities (9,557.89) (6,562.70)
Amount received from subordinated debts - 2,360.00
Repayment of subordinated debts (449.01) (864.56)
Amount received from borrowings other than debt securities 42,569.54 56,824.89
Repayment of borrowings other than debt securities (40,683.27) (56,722.52)
Payment of lease liabilities (56.20) -
Dividend paid (272.38) (247.16)
Tax on dividend (55.96) (51.30)
Net cash flows from financing activities (C ) 5,246.49 5,549.55
Net increase in cash and cash equivalents (A+B+C) 2,059.85 (61.57)
Cash and cash equivalents at the beginning of the year 1,029.14 1,090.71
Cash and cash equivalents at the end of the year 3,088.99 1,029.14
Net cash provided by (used in) operating activities includes
Interest received on loans 14,487.74 14,842.91
Interest paid (5,923.07) (5,813.03)
Dividend received 0.19 4.99
(Rs. in crores)
As at As at
Components of cash and cash equivalents March 31, 2020 March 31, 2019
Cash and cash equivalents at the end of the year
i) Cash on hand 41.24 123.47
ii) Cheques on hand 2.38 18.18
iii) Balances with banks (of the nature of cash and cash equivalents) 1,810.59 761.67
iv) Bank deposit with original maturity less than three months 1,234.78 125.82
Total 3,088.99 1,029.14



Mumbai Mumbai
June 10, 2020 June 10, 2020

Notes forming part of the financial statements
1 Corporate Information
Shriram Transport Finance Company Limited (the Company) is a public company domiciled in India and incorporated under the
provisions of the Companies Act, 1956. Its shares are listed on BSE Limited and National Stock Exchange of India Limited. The
Company is primarily engaged in the business of financing commercial vehicles. It also provides loans for equipment and other
business purposes. The Company is registered with the Reserve Bank of India (RBI), Ministry of Corporate Affairs and Insurance
Regulatory and Development Authority of India (IRDA). The registration details are as follows:
RBI 07-00459
Corporate Identity Number (CIN) L65191TN1979PLC007874
IRDA CA0197
The Company is associate of Shriram Capital Limited.
The registered office of the Company is Mookambika Complex, 3rd floor, No.4, Lady Desika Road, Mylapore, Chennai – 600
004, Tamil Nadu. The principal place of business is Wockhardt Towers, West Wing, Level-3, C-2, G-Block, Bandra -Kurla
Complex, Bandra (East), Mumbai, Maharashtra- 400 051.
The financial statements of the Company for the year ended March 31, 2020 were approved for issue in accordance with the
resolution of the Board of Directors on June 10, 2020.
2 Basis of preparation
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The financial
statements have been prepared under the historical cost convention, as modified by the application of fair value measurements
required or allowed by relevant Accounting Standards. Accounting policies have been consistently applied to all periods
presented, unless otherwise stated.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The preparation of financial statements requires the use of certain critical accounting estimates and assumptions that affect
the reported amounts of assets, liabilities, revenues and expenses and the disclosed amount of contingent liabilities. Areas
involving a higher degree of judgement or complexity, or areas where assumptions are significant to the Company are
discussed in Note 7 - Significant accounting judgements, estimates and assumptions.
The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest crore, except when
otherwise indicated.
3 Presentation of financial statement
The financial statements of the Company are presented as per Schedule III (Division III) of the Companies Act, 2013 applicable
to NBFCs, as notified by the Ministry of Corporate Affairs (MCA). Financial assets and financial liabilities are generally
reported on a gross basis except when, there is an unconditional legally enforceable right to offset the recognised amounts
without being contingent on a future event and the parties intend to settle on a net basis in the following circumstances:
i. The normal course of business
ii. The event of default
iii. The event of insolvency or bankruptcy of the Company and/or its counterparties
Derivative assets and liabilities with master netting arrangements (e.g. International Swaps and Derivative Association
Arrangements) are presented net if all the above criteria are met.
4 Statement of compliance
These standalone or separate financial statements of the Company have been prepared in accordance with Indian Accounting
Standards as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of
the Companies Act, 2013 and the other relevant provisions of the Act.
Except for the changes below, the Company has consistently applied accounting policies to all periods.
i) The Company has adopted Ind AS 116 ‘Leases’ with the date of initial application being April 01, 2019. Ind AS 116 replaces
Ind AS 17 – Leases and related interpretation and guidance. Refer note 6.3(iii) for the Company’s policy on leases.
5 New Accounting Standards issued but not effective
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such
notification which would have been applicable from April 01, 2020.

6 Significant accounting policies

6.1
Financial instruments
(i) Classification of financial instruments
The Company classifies its financial assets into the following measurement categories:
1. Financial assets to be measured at amortised cost
2. Financial assets to be measured at fair value through other comprehensive income
3. Financial assets to be measured at fair value through profit or loss account
The classification depends on the contractual terms of the cashflows of the financial assets and the Company’s business
model for managing financial assets which are explained below:
Business model assessment
The Company determines its business model at the level that best reflects how it manages groups of financial assets to
achieve its business objective.
The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated
portfolios and is based on observable factors such as:
 How the performance of the business model and the financial assets held within that business model are evaluated
and reported to the entity’s key management personnel
 The risks that affect the performance of the business model (and the financial assets held within that business
model) and the way those risks are managed
 How managers of the business are compensated (for example, whether the compensation is based on the fair value
of the assets managed or on the contractual cash flows collected)
 The expected frequency, value and timing of sales are also important aspects of the Company’s assessment. The
business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’
scenarios into account. If cash flows after initial recognition are realised in a way that is different from the Company’s
original expectations, the Company does not change the classification of the remaining financial assets held in that
business model, but incorporates such information when assessing newly originated or newly purchased financial
assets going forward.
The Solely Payments of Principal and Interest (SPPI) test
As a second step of its classification process the Company assesses the contractual terms of financial assets to identify
whether they meet the SPPI test.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change
over the life of the financial asset (for example, if there are repayments of principal or amortisation of the premium/
discount).
In making this assessment, the Company considers whether the contractual cash flows are consistent with a basic lending
arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and
a profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk
or volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified and measured at
fair value through profit or loss.
The Company classifies its financial liabilities at amortised costs unless it has designated liabilities at fair value through the
profit and loss account or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.
(ii) Financial assets measured at amortised cost
Debt instruments
These financial assets comprise bank balances, Loans, Trade receivables, investments and other financial assets.
Debt instruments are measured at amortised cost where they have:
a) contractual terms that give rise to cash flows on specified dates, that represent solely payments of principal and
interest on the principal amount outstanding; and
b) are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently
measured at amortised cost.

(iii) Financial assets measured at fair value through other comprehensive income
Debt instruments
Investments in debt instruments are measured at fair value through other comprehensive income where they have:
b) are held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets.
measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income
within a separate component of equity. Impairment losses or reversals, interest revenue and foreign exchange gains
and losses are recognised in profit and loss. Upon disposal, the cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to the statement of profit and loss. As at the reporting date, the
Company does not have any financial instruments measured at fair value through other comprehensive income.
Equity instruments
Investment in equity instruments that are neither held for trading nor contingent consideration recognised by the Company
in a business combination to which Ind AS 103 ‘Business Combination’ applies, are measured at fair value through other
comprehensive income, where an irrevocable election has been made by management and when such instruments meet
the definition of Equity under Ind AS 32 Financial Instruments: Presentation. Such classification is determined on an
instrument-by-instrument basis. As at reporting date, there are no equity instruments measured at FVOCI.
Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. Dividends on
such investments are recognised in profit or loss.
(iv) Items at fair value through profit or loss
Items at fair value through profit or loss comprise:
• Investments (including equity shares) held for trading;
• Items specifically designated as fair value through profit or loss on initial recognition; and
• debt instruments with contractual terms that do not represent solely payments of principal and interest. As at the
reporting date, the Company does not have any financial instruments measured at fair value through profit or loss.
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with transaction costs
recognised in the statement of profit and loss as incurred. Subsequently, they are measured at fair value and any gains or
losses are recognised in the statement of profit and loss as they arise.
Financial instruments held for trading
A financial instrument is classified as held for trading if it is acquired or incurred principally for selling or repurchasing
in the near term, or forms part of a portfolio of financial instruments that are managed together and for which there is
evidence of short-term profit taking, or it is a derivative not in a qualifying hedge relationship.
Trading derivatives and trading securities are classified as held for trading and recognised at fair value.
Financial instruments designated as measured at fair value through profit or loss
Upon initial recognition, financial instruments may be designated as measured at fair value through profit or loss. A
financial asset may only be designated at fair value through profit or loss if doing so eliminates or significantly reduces
measurement or recognition inconsistencies (i.e. eliminates an accounting mismatch) that would otherwise arise from
measuring financial assets or liabilities on a different basis. As at the reporting date, the Company does not have any
financial instruments designated as measured at fair value through profit or loss.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly reduces an
accounting mismatch or:
• if a host contract contains one or more embedded derivatives; or
• if financial assets and liabilities are both managed and their performance evaluated on a fair value basis in
accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value attributable to
changes in the Company’s own credit quality is calculated by determining the changes in credit spreads above observable
market interest rates and is presented separately in other comprehensive income. As at the reporting date, the Company
has not designated any financial instruments as measured at fair value through profit or loss.

(v) Derivatives
A derivative is a financial instrument or other contract with all three of the following characteristics:
 Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price,
foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided that, in the
case of a non-financial variable, it is not specific to a party to the contract (i.e., the ‘underlying’).
 It requires no initial net investment or an initial net investment that is smaller than would be required for other
types of contracts expected to have a similar response to changes in market factors.
 It is settled at a future date.
 The Company enters into derivative transactions with various counterparties to hedge its foreign currency
risks and interest rate risks. Derivative transaction consists of hedging of foreign exchange transactions, which
includes interest rate and currency swaps, interest rate options and forwards. The Company undertakes derivative
transactions for hedging on-balance sheet liabilities. Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently measured to their fair value at the end of each reporting
period. Such derivative instruments are presented as assets in case of a fair value gain and as liabilities in case of
fair value loss. Changes in the fair value of derivatives are included in net gain on fair value changes.
(vi) Embedded Derivatives
An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with
the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the Company does not
separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the entire
hybrid contract.
(vii) Debt securities and other borrowed funds
After initial measurement, debt issued and other borrowed funds are subsequently measured at amortised cost.
Amortised cost is calculated by taking into account any discount or premium on issue funds, and transaction costs that
are an integral part of the Effective Interest Rate (EIR).
(viii) Financial guarantees
Financial guarantees are initially recognised in the financial statements at fair value, being the premium received.
Subsequent to initial recognition, the Company’s liability under each guarantee is measured at the higher of the amount
initially recognised less cumulative amortisation recognised in the statement of profit and loss.
 The premium is recognised in the statement of profit and loss on a straight-line basis over the life of the guarantee.
(ix) Reclassification of financial assets and liabilities
The Company does not reclassify its financial assets subsequent to their initial recognition. Financial liabilities are never
reclassified. The Company did not reclassify any of its financial assets or liabilities in 2018-19 and until the year ended
March 31, 2020.
(x) Recognition and Derecognition of financial assets and liabilities
Recognition
a) Loans and Advances are initially recognised when the funds are transferred to the customers’ account or delivery
of assets by the dealer, whichever is earlier.
b) Investments are initially recognised on the settlement date.
c) Debt securities, deposits and borrowings are initially recognised when funds reach the Company.
d) Other Financial assets and liabilities are initially recognised on the trade date, i.e., the date that the Company
becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or
sales of financial assets that require delivery of assets within the time frame generally established by regulation or
convention in the market place.
Derecognition of financial assets due to substantial modification of terms and conditions:
The Company derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been
renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognised as a derecognition
gain or loss, to the extent that an impairment loss has not already been recorded. The newly recognised loans are
classified as Stage 1 for ECL measurement purposes, unless the new loan is deemed to be Purchased or Originated as
Credit Impaired (POCI).

If the modification does not result in cash flows that are substantially different, the modification does not result in
derecognition. Based on the change in cash flows discounted at the original EIR, the Company records a modification
gain or loss, to the extent that an impairment loss has not already been recorded.
Derecognition of financial assets other than due to substantial modification
a) Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is derecognised when the rights to receive cash flows from the financial asset have expired. The Company
also derecognises the financial asset if it has both transferred the financial asset and the transfer qualifies for
derecognition.
The Company has transferred the financial asset if, and only if, either:
i. The Company has transferred its contractual rights to receive cash flows from the financial asset, or
ii. It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a ‘pass–through’ arrangement.
Pass-through arrangements are transactions whereby the Company retains the contractual rights to receive the
cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows to
one or more entities (the ‘eventual recipients’), when all of the following three conditions are met:
i. The Company has no obligation to pay amounts to the eventual recipients unless it has collected equivalent
amounts from the original asset, excluding short-term advances with the right to full recovery of the amount
lent plus accrued interest at market rates.
ii. The Company cannot sell or pledge the original asset other than as security to the eventual recipients.
iii. The Company has to remit any cash flows it collects on behalf of the eventual recipients without material
delay. In addition, the Company is not entitled to reinvest such cash flows, except for investments in cash
or cash equivalents including interest earned, during the period between the collection date and the date of
required remittance to the eventual recipients.
A transfer only qualifies for derecognition if either:
i. The Company has transferred substantially all the risks and rewards of the asset, or
ii. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
The Company considers control to be transferred if and only if, the transferee has the practical ability to sell the
asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing
additional restrictions on the transfer.
When the Company has neither transferred nor retained substantially all the risks and rewards and has retained
control of the asset, the asset continues to be recognised only to the extent of the Company’s continuing involvement,
in which case, the Company also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Company has retained.
b) Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability. The difference between the carrying
value of the original financial liability and the consideration paid is recognised in profit or loss. As at the reporting
date, the Company does not have any financial liabilities which have been derecognised.
(xi) Impairment of financial assets
Overview of the ECL principles
The Company records allowance for expected credit losses for all loans, other debt financial assets not held at FVTPL,
together with financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments
are not subject to impairment under Ind AS 109.
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit
loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based
on the 12 months’ expected credit loss.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is the portion of Lifetime ECL that represent the ECLs that result from default events
on a financial instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis, depending
on the nature of the underlying portfolio of financial instruments. The Company has grouped its loan portfolio into
Business Loans, Secured loans for new vehicles, Secured loans for used vehicles and Equipment Finance Loans.
The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a
financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the
risk of default occurring over the remaining life of the financial instrument. The Company does the assessment of
significant increase in credit risk at a borrower level. If a borrower has various facilities having different past due status,
then the highest days past due (DPD) is considered to be applicable for all the facilities of that borrower.
Based on the above, the Company categorises its loans into Stage 1, Stage 2 and Stage 3 as described below:
Stage 1
All exposures where there has not been a significant increase in credit risk since initial recognition or that has low
credit risk at the reporting date and that are not credit impaired upon origination are classified under this stage. The
Company classifies all standard advances and advances upto 30 days default under this category. Stage 1 loans also
include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.
Stage 2
All exposures where there has been a significant increase in credit risk since initial recognition but are not credit
impaired are classified under this stage. 30 Days Past Due is considered as significant increase in credit risk.
Stage 3
All exposures assessed as credit impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that asset have occurred are classified in this stage. For exposures that have become credit impaired,
a lifetime ECL is recognised and interest revenue is calculated by applying the effective interest rate to the amortised
cost (net of provision) rather than the gross carrying amount. 90 Days Past Due is considered as default for classifying
a financial instrument as credit impaired. If an event (for e.g. any natural calamity) warrants a provision higher than as
mandated under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.
Credit-impaired financial assets
At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt financial
assets carried at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
a) Significant financial difficulty of the borrower or issuer;
b) A breach of contract such as a default or past due event;
c) The restructuring of a loan or advance by the company on terms that the company would not consider otherwise;
d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
e) The disappearance of an active market for a security because of financial difficulties.
ECL on Investment in Government securities:
The Company has invested in Government of India loans. Investment in Government securities are classified under
stage 1. No ECL has been applied on these investments as there is no history of delay in servicing of interest/repayments.
The Company does not expect any delay in interest/redemption servicing in future.
Simplified approach for trade/other receivables and contract assets
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade/other receivables that
do not contain a significant financing component. The application of simplified approach does not require the Company
to track changes in credit risk. It recognises impairment loss allowance based on lifetime ECLs at each reporting date,
right from its initial recognition. At every reporting date, the historical observed default rates are updated for changes in
the forward-looking estimates. For trade receivables that contain a significant financing component a general approach
is followed.
Financial guarantee contracts
The Company’s liability under financial guarantee is measured at the higher of the amount initially recognised less
cumulative amortisation recognised in the statement of profit and loss, and the ECL provision. For this purpose, the
Company estimates ECLs by applying a credit conversion factor.

ECL on Debt instruments measured at fair value through OCI

The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the
balance sheet, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were
measured at amortised cost is recognised in OCI as an accumulated impairment amount, with a corresponding charge
to profit or loss. The accumulated loss recognised in OCI is recycled to the profit and loss upon derecognition of the
assets. As at the reporting date, the Company does not have any debt instruments measured at fair value through OCI.
The mechanics of ECL
The Company calculates ECLs based on probability-weighted scenarios to measure the expected cash shortfalls,
discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due to the
Company in accordance with the contract and the cash flows that the Company expects to receive.
The mechanics of the ECL calculations are outlined below and the key elements are, as follows:
Probability of Default (PD) - 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. The concept of PD is further explained in Note 53.
Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure at a future default date. The
concept of EAD is further explained in Note 53.
Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising in the case where a default occurs
at a given time. It is based on the difference between the contractual cash flows due and those that the Company would
expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the EAD. The
concept of LGD is further explained in Note 53.
Forward looking information
While estimating the expected credit losses, the Company reviews macro-economic developments occurring in the
economy and market it operates in. On a periodic basis, the Company analyses if there is any relationship between key
economic trends like GDP, unemployment rates, benchmark rates set by the Reserve Bank of India, inflation etc. with
the estimate of PD, LGD determined by the Company based on its internal data. While the internal estimates of PD,
LGD rates by the Company may not be always reflective of such relationships, temporary overlays, if any, are embedded
in the methodology to reflect such macro-economic trends reasonably. Refer note 62 for impact of COVID and macro-
economic factors on PD and LGD estimation.
Collateral Valuation
To mitigate its credit risks on financial assets, the Company seeks to use collateral, wherever possible. The collateral
comes in various forms, such as movable and immovable assets, guarantees, etc. However, the fair value of collateral
affects the calculation of ECLs. To the extent possible, the Company uses active market data for valuing financial assets
held as collateral. Other financial assets which do not have readily determinable market values are valued using models.
Non-financial collateral, such as vehicles, is valued based on data provided by third parties or management judgements.
Collateral repossessed
In its normal course of business whenever default occurs, the Company may take possession of properties or other
assets in its retail portfolio and generally disposes such assets through auction, to settle outstanding debt. Any surplus
funds are returned to the customers/obligors. As a result of this practice, assets under legal repossession processes are
not recorded on the balance sheet as it does not meet the recognition criteria in other standards.

(xii) Write-offs
The Company reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof. This is generally the case when the Company determines
that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subjected to write-offs. Any subsequent recoveries against such loans are credited to the statement of profit and loss.
Write off in case of standard accounts is done by way of waiver of last one or two instalments in case the borrower pays
all the EMIs as per the due dates mentioned in the agreement.
(xiii) Determination of fair value
On initial recognition, all the financial instruments are measured at fair value. For subsequent measurement, the
Company measures certain categories of financial instruments (as explained in note 6.1(iii) to 6.1(vi)) at fair value on
each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques, as summarised below:
Level 1 financial instruments - Those where the inputs used in the valuation are unadjusted quoted prices from

active markets for identical assets or liabilities that the Company has access to at the measurement date. The Company
considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the
identical assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet date.
Level 2 financial instruments - Those where the inputs that are used for valuation and are significant, are derived from

directly or indirectly observable market data available over the entire period of the instrument’s life. Such inputs include
quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets
and observable inputs other than quoted prices such as interest rates and yield curves, implied volatilities, and credit
spreads. In addition, adjustments may be required for the condition or location of the asset or the extent to which it
relates to items that are comparable to the valued instrument. However, if such adjustments are based on unobservable
inputs which are significant to the entire measurement, the Company will classify the instruments as Level 3.
Level 3 financial instruments - Those that include one or more unobservable input that is significant to the measurement

as whole.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change has occurred. No such instances of transfers between levels of the fair value hierarchy were recorded during the
reporting period.
Difference between transaction price and fair value at initial recognition.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price (i.e. the fair
value of the consideration given or received) unless the fair value of that instrument is evidenced by comparison with
other observable current market transactions in the same instrument (i.e. without modification or repackaging) or
based on a valuation technique whose variables include only data from observable markets. When such evidence exists,
the Company recognises the difference between the transaction price and the fair value in profit or loss on initial
recognition (i.e. on day one).
When the transaction price of the instrument differs from the fair value at origination and the fair value is based on a
valuation technique using only inputs observable in market transactions, the Company recognises the difference between
the transaction price and fair value in net gain on fair value changes. In those cases where fair value is based on models
for which some of the inputs are not observable, the difference between the transaction price and the fair value is deferred
and is only recognised in profit or loss when the inputs become observable, or when the instrument is derecognised.
6.2 Revenue from operations
(i) Interest Income
Interest income is recognised by applying the Effective Interest Rate (EIR) to the gross carrying amount of financial
assets other than credit-impaired assets and financial assets classified as measured at FVTPL.
The EIR in case of a financial asset is computed
a. As the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
the gross carrying amount of a financial asset.
b. By considering all the contractual terms of the financial instrument in estimating the cash flows.
c. Including all fees received between parties to the contract that are an integral part of the effective interest rate,
transaction costs, and all other premiums or discounts.
Any subsequent changes in the estimation of the future cash flows is recognised in interest income with the corresponding
adjustment to the carrying amount of the assets.

Interest income on credit impaired assets is recognised by applying the effective interest rate to the net amortised cost
(net of provision) of the financial asset.
Interest on delayed payments by customers are treated to accrue only on realisation, due to uncertainty of realisation
and are accounted accordingly.
Interest spread under par structure of direct assignment of loan receivables is recognised upfront. On derecognition of
the loan receivables in its entirety, the difference between the carrying amount (measured at the date of derecognition)
and the consideration received (including any new asset obtained less any new liability assumed) shall be recognised
upfront in the statement of profit or loss.
(ii) Dividend Income
Dividend income is recognised
a. When the right to receive the payment is established,
b. it is probable that the economic benefits associated with the dividend will flow to the entity and
c. the amount of the dividend can be measured reliably
(iii) Rental Income
Rental income arising from operating leases is recognised on a straight-line basis over the lease term. In cases where the
increase is in line with expected general inflation, rental income is recognised as per the contractual terms.
Operating leases are leases where the Company does not transfer substantially all of the risk and benefits of ownership
of the asset.
(iv) Fees & Commission Income
Fees and commissions are recognised when the Company satisfies the performance obligation, at fair value of the
consideration received or receivable based on a five-step model as set out below, unless included in the effective interest
calculation:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more than
one performance obligation, the Company allocates the transaction price to each performance obligation in an amount
that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.
Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.

(v) Net gain on Fair value changes
Any differences between the fair values of financial assets classified as fair value through the profit or loss (refer Note
34), held by the Company on the balance sheet date is recognised as an unrealised gain / loss. In cases there is a net gain
in the aggregate, the same is recognised in “Net gains on fair value changes” under Revenue from operations and if there
is a net loss the same is disclosed under “Expenses” in the statement of Profit and Loss.
Similarly, any realised gain or loss on sale of financial instruments measured at FVTPL and debt instruments measured
at FVOCI is recognised in net gain / loss on fair value changes. As at the reporting date, the Company does not have any
financial instruments measured at FVTPL and debt instruments measured at FVOCI.
However, net gain / loss on derecognition of financial instruments classified as amortised cost is presented separately
under the respective head in the Statement of Profit and Loss.
6.3 Expenses
(i) Finance costs
Finance costs represents Interest expense recognised by applying the Effective Interest Rate (EIR) to the gross carrying
amount of financial liabilities other than financial liabilities classified as FVTPL.
The EIR in case of a financial liability is computed
a. As the rate that exactly discounts estimated future cash payments through the expected life of the financial liability
to the gross carrying amount of the amortised cost of a financial liability.

c. Including all fees paid between parties to the contract that are an integral part of the effective interest rate,
Interest expense includes issue costs that are initially recognised as part of the carrying value of the financial liability
and amortised over the expected life using the effective interest method. These include fees and commissions payable
to advisers and other expenses such as external legal costs, rating fee etc, provided these are incremental costs that are
directly related to the issue of a financial liability.
(ii) Retirement and other employee benefits
Short term employee benefit
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. These benefits include short term compensated absences such as paid annual leave. The undiscounted amount
of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised
as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia
are recognised in the period in which the employee renders the related service.
Post-employment employee benefits
a) Defined contribution schemes
All the employees of the Company are entitled to receive benefits under the Provident Fund and Employees State
Insurance scheme, defined contribution plans in which both the employee and the Company contribute monthly at
a stipulated rate. The Company has no liability for future benefits other than its annual contribution and recognises
such contributions as an expense in the period in which employee renders the related service. If the contribution
payable to the scheme for service received before the Balance Sheet date exceeds the contribution already paid,
the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the
contribution already paid exceeds the contribution due for services received before the Balance Sheet date, then
excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future
payment or a cash refund.
b) Defined Benefit schemes
The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides
for lump sum payments to employees upon death while in employment or on separation from employment
after serving for the stipulated years mentioned under ‘The Payment of Gratuity Act, 1972’. The present value
of the obligation under such defined benefit plan is determined based on actuarial valuation, carried out by an
independent actuary at each Balance Sheet date, using the Projected Unit Credit Method, which recognises each
period of service as giving rise to an additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan are based on the market yields on
Government Securities as at the Balance Sheet date.
Net interest recognised in profit or loss is calculated by applying the discount rate used to measure the defined
benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the
discount rate is recognised as part of re-measurement of net defined liability or asset through other comprehensive
income. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, attrition rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive
to changes in these assumptions. All assumptions are reviewed annually.
The Company fully contributes all ascertained liabilities to The Trustees - Shriram Transport Finance Company
Limited Employees Group Gratuity Assurance Scheme. Trustees administer contributions made to the trust and
contributions are invested in a scheme of insurance with the IRDA approved Insurance Companies.
Re-measurement, comprising of actuarial gains and losses and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-
measurements are not reclassified to the statement of profit and loss in subsequent periods.
Other long-term employee benefits
Company’s liabilities towards compensated absences to employees are accrued on the basis of valuations, as at the
Balance Sheet date, carried out by an independent actuary using Projected Unit Credit Method. Actuarial gains
and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised
immediately in the Statement of Profit and Loss.
The Company presents the provision for compensated absences under provisions in the Balance Sheet.

(iii) Rent Expense

Upto March 31, 2019
Identification of Lease
The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or
assets or whether the arrangement conveys a right to use the asset.
Recognition of lease payments
Rent Expenses representing operating lease payments are recognised as an expense in the statement of profit and loss
on a straight-line basis over the lease term, unless the increase is in line with expected general inflation, in which case
lease payments are recognised based on contractual terms.
Leases that do not transfer to the Company substantially all of the risks and benefits incidental to ownership of the
leased items are operating leases.
From April 01, 2019
The Company has adopted Ind AS 116 ‘Leases’ with the date of initial application being April 01, 2019 (transition
date).The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a
specific asset or assets or whether the arrangement conveys a right to use the asset. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. The
Company, at the inception of a contract, assesses whether the contract is a lease or not lease. For arrangements entered
into prior to April 01, 2019, the Company has determined whether the arrangement contains a lease on the basis of facts
and circumstances existing on the date of transition.
The Company’s lease asset classes consist of leases for office premises.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Company’s incremental borrowing rate at the transition date in case of leases existing as on
the date of transition date and in case of leases entered after transition date, incremental borrowing rate as on the date
of lease commencement date. In case of existing leases the said date would be the date of transition. It is remeasured
when there is a change in future lease payments arising from a change in a rate, if the Company changes its assessment
of whether it will exercise an extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced to zero.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease
term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with
these leases as an expense over the lease term.
In the comparative period, leases, lease payments and receipts under operating leases are recognised as an expense and
income respectively, on a straight line basis in the statement of profit and loss over the lease term except where the lease
payments are structured to increase in line with expected general inflation.
In case of a sub-lease, the Company accounts for its head lease and sub-lease separately.
(iv) Other income and expenses
All other income and expense are recognised in the period they occur.
(v) Impairment of non-financial assets
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and risks specific to the asset.
In determining net selling price, recent market transactions are taken into account, if available. If no such
transactions can be identified, an appropriate valuation model is used. After impairment, depreciation is provided
on the revised carrying amount of the asset over its remaining useful life.

(vi) Taxes
Current Tax
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered
from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted, or substantively enacted, by the reporting date in the countries where the Company operates and generates
taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Deferred tax

Deferred tax assets and liabilities are recognised for temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred tax assets are only recognised for temporary differences, unused tax losses and unused tax credits if it is
probable that future taxable amounts will arise to utilise those temporary differences and losses. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and
liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities are
realised simultaneously.
Minimum Alternate Tax (MAT)

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company
recognises MAT credit available as an asset only to the extent that it is probable that the Company will pay normal
income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the
year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created
by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the
MAT Credit Entitlement asset at each reporting date and writes down the asset to the extent the Company does not
have convincing evidence that it will pay normal tax during the specified period.
Goods and services tax /value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the goods and services tax/value added taxes paid, except:
i. When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which
case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as
applicable.
ii. When receivables and payables are stated with the amount of tax included.
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the balance sheet.
6.4 Foreign currency translation
(i) Functional and presentational currency
The standalone financial statements are presented in Indian Rupees which is also functional currency of the Company
and the currency of the primary economic environment in which the Company operates.
(ii) Transactions and balances
Initial recognition
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions.
Conversion
Monetary assets and liabilities denominated in foreign currency, which are outstanding as at the reporting date, are
translated at the reporting date at the closing exchange rate and the resultant exchange differences are recognised in
the Statement of Profit and Loss.


Non–monetary items that are measured at historical cost in a foreign currency are translated using the spot exchange
rates as at the date of recognition.
6.5 Cash and cash equivalents
Cash and cash equivalents comprise the net amount of short-term, highly liquid investments that are readily convertible
to known amounts of cash (short-term deposits with an original maturity of three months or less) and are subject to an
insignificant risk of change in value, cheques on hand and balances with banks. They are held for the purposes of meeting
short-term cash commitments (rather than for investment or other purposes).
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash on hand, cheques on hand,
balances with banks (of the nature of cash and cash equivalents) and short- term deposits, as defined above.
6.6 Property, plant and equipment
Property, plant and equipment (PPE) are measured at cost less accumulated depreciation and accumulated impairment, (if
any). The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by the management. Changes in the expected useful life are accounted for by changing the amortisation period or
methodology, as appropriate, and treated as changes in accounting estimates.
Subsequent expenditure related to an item of tangible asset are added to its gross value only if it increases the future benefits
of the existing asset, beyond its previously assessed standards of performance and cost can be measured reliably. Other
repairs and maintenance costs are expensed off as and when incurred.
Depreciation
Depreciation is calculated using the straight–line method to write down the cost of property and equipment to their
residual values over their estimated useful lives which is in line with the estimated useful life as specified in Schedule II of
the Companies Act, 2013 except for Leasehold improvements which are amortised on a straight-line basis over the period
of lease or estimated period of useful life of such improvement, subject to a maximum period of 60 months. Leasehold
improvements include all expenditure incurred on the leasehold premises that have future economic benefits. Land is not
depreciated.
The estimated useful lives are as follows:
Useful life as prescribed by Schedule Useful life estimated by

Particulars II of the Companies Act, 2013 Company
Building 60 years 60 years
Plant and machinery 15 years 15 years
Electrical equipment 10 years 10 years
Generator 10 years 10 years
Furniture and fixture 10 years 10 years
Air conditioner 5 years 5 years
Electronic equipment 5 years 5 years
Office equipment 5 years 5 years
Refrigerator 5 years 5 years
Motor car 8 years 8 years
Vehicles 10 years 10 years
Server and networking 6 years 6 years
Computer 3 years 3 years
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
Property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the asset
is derecognised. The date of disposal of an item of property, plant and equipment is the date the recipient obtains control of
that item in accordance with the requirements for determining when a performance obligation is satisfied in Ind AS 115.

6.7 Intangible assets

An intangible asset is recognised only when its cost can be measured reliably and it is probable that the expected future economic
benefits that are attributable to it will flow to the Company.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of an intangible asset comprises its purchase
price and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and
rebates. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated
impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised
over the useful economic life. The amortisation period and the amortisation method for an intangible asset with a finite useful
life are reviewed at least at each financial year-end. Changes in the expected useful life, or the expected pattern of consumption
of future economic benefits embodied in the asset, are accounted for by changing the amortisation period or methodology, as
appropriate, which are then treated as changes in accounting estimates. The amortisation expense on intangible assets with finite
lives is presented as a separate line item in the statement of profit and loss. Amortisation on assets acquired/sold during the year is
recognised on a pro-rata basis to the Statement of Profit and Loss from / upto the date of acquisition/sale.
Amortisation is calculated using the straight–line method to write down the cost of intangible assets to their residual values over
their estimated useful lives. Intangible assets comprising of software are amortised on a straight-line basis over a period of 3 years,
unless it has a shorter useful life.
The Company’s intangible assets consist of computer software with definite life.
Gains or losses from derecognition of intangible assets are measured as the difference between the net disposal proceeds and the
carrying amount of the asset are recognised in the Statement of Profit and Loss when the asset is derecognised.
6.8 Investment Property
Properties, held to earn rentals and/or capital appreciation are classified as investment property and measured and reported at cost,
including transaction costs.
Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual values
over their useful lives specified in Schedule II to the Companies Act, 2013 or in case of assets where the useful life was determined
by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year end to reflect
the expected pattern of consumption of the future benefits embodied in the investment property. The estimated useful life and
residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/residual value
is accounted on prospective basis.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and
no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is recognised in
the Statement of Profit and Loss in the same period.
6.9 Provisions
Provisions are recognised when the enterprise has a present obligation (legal or constructive) as a result of past events, and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
When the effect of the time value of money is material, the enterprise determines the level of provision by discounting the expected
cash flows at a pre-tax rate reflecting the current rates specific to the liability. The expense relating to any provision is presented in
the statement of profit and loss net of any reimbursement. As at reporting date, the Company does not have any such provisions
where the effect of time value of money is material.
6.10 Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not
recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The
Company does not recognise a contingent liability but discloses its existence in the financial statements.
6.11 Earning Per Share
The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share. Basic EPS is
calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend
and attributable taxes) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a
later date. In computing the dilutive earnings per share, only potential equity shares that are dilutive and that either reduces the
earnings per share or increases loss per share are included.

7 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the
disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods
are affected. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
7.1 Business Model Assessment
Classification and measurement of financial assets depends on the results of the SPPI and the business model test. The Company
determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular
business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets
is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and
how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or fair value
through other comprehensive income that are derecognised prior to their maturity to understand the reason for their disposal
and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the
Company’s continuous assessment of whether the business model for which the remaining financial assets are held continues to
be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the
classification of those assets.
7.2 Defined employee benefit assets and liabilities
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.
These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed annually.
7.3 Fair value measurement
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using various valuation techniques. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values.
Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments.
7.4 Impairment of loans portfolio
The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the estimation
of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a
significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different levels
of allowances.
It has been the Company’s policy to regularly review its models in the context of actual loss experience and adjust when necessary.
The impairment loss on loans and advances is disclosed in more detail in Note 6.1(xi) Overview of ECL principles.
7.5 Contingent liabilities and provisions other than impairment on loan portfolio
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to
change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.
7.6 Effective Interest Rate (EIR) method
The Company’s EIR methodology, recognises interest income / expense using a rate of return that represents the best estimate of
a constant rate of return over the expected behavioural life of loans given / taken and recognises the effect of potentially different
interest rates at various stages and other characteristics of the product life cycle (including prepayments and penalty interest and
charges).
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the instruments,
as well expected changes to India’s base rate and other fee income/expense that are integral parts of the instrument
7.7 Other estimates
These include contingent liabilities, useful lives of tangible and intangible assets etc.

(Rs. in crores)
As at As at
8 Cash and cash equivalents
Cash on hand 41.24 123.47
Balances with banks (of the nature of cash and cash equivalents) 1,810.59 761.67
Cheques on hand 2.38 18.18
Bank deposit with original maturity less than three months 1,234.78 125.82
Total 3,088.99 1,029.14
Balances with banks earn interest at fixed rates. Short term deposits are made for varying periods of between one day
and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective
short-term deposit rates. The Company has not taken bank overdraft, therefore the cash and cash equivalent for cash flow
statement is same as cash and for cash equivalent given above.
(Rs. in crores)
As at As at
9 Bank balance other than above
Balances with banks
Unclaimed dividend accounts 10.57 10.69
Bank deposit with original maturity for more than three months 364.16 200.37
Balances with banks to the extent held as credit enhancement or security against
3,851.20 2,741.27
the borrowings, guarantees, other commitments. *
Total 4,225.93 2,952.33
Fixed deposit and other balances with banks earns interest at fixed rate.
*Includes deposits Rs. 3,701.14 crores (March 31, 2019: Rs. 2,716.93 crores) pledged with Banks as margin for credit
enhancement, Rs. 146.83 crores (March 31, 2019: Rs. 21.28 crores) as margin for guarantees and Rs. 3.23 crores (March
31, 2019: Rs. 3.06 crores) pledged as lien against loans taken.

10 Derivative financial instruments

The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that either
meet the hedge accounting requirements or hedges that are economic hedges, but the Company has elected not to apply hedge accounting
requirements.
The table below shows the fair values of derivative financial instruments recorded as assets or liabilities together with their notional amounts.
The notional amounts indicate the value of transactions outstanding at the year end and are not indicative of either the market risk or credit
risk.
(Rs. in crores)
As at March 31, 2020 As at March 31, 2019
Notional Fair Value Notional Fair Value - Notional Fair Value Notional Fair Value -
Particulars Amounts - Assets Amounts Liabilities Amounts - Assets Amounts Liabilities
Part I
(i) Currency derivatives:
- Spots and forwards 8,018.44 378.05 - - 374.86 1.22 - -
- Currency swaps 1,769.50 11.50 - - 2,402.33 18.67 2,849.90 83.05
- Cross currency interest rate swaps 6,389.23 319.50 - - - - - -
Sub total (i) 16,177.17 709.05 - - 2,777.19 19.89 2,849.90 83.05
(ii) Interest rate derivatives:
-Forward rate agreements and
- - - - 40.00 1.83 15.00 0.37
interest rate swaps
-Interest rate swaps 8,744.63 45.77 - - - - - -
-Interest rate caps - 3.91 - - - - - -
Sub total (ii) 8,744.63 49.68 - - 40.00 1.83 15.00 0.37
(iii) Credit derivatives: - - - - - - - -
(iv) Equity linked derivatives: - - - - - - - -
(v) Other derivatives: - - - - - - - -
Total derivative financial instruments 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
(i+ii+iii+iv+v)
Part II
Included in above (Part I) are
derivatives held for hedging and
risk management purposes as
follows:
(i) Undesignated Derivatives 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
Total Derivative Financial Instruments
24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
(i)+(ii)+(iii)+(iv)

10 Derivative financial instruments (Contd.)

Hedging activities and derivatives
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments
are foreign currency risk and interest rate risk. The Company’s risk management strategy and how it is applied to manage risk are explained in
Note 53.
Derivatives designated as hedging instruments

The Company has not designated any derivatives as hedging instruments.
Derivatives not designated as hedging instruments

The Company uses cross currency interest rate swaps, interest rate swaps, principal only swaps, forward contracts, interest rate caps to manage
its interest rate risk and foreign currency risk arising from USD and EURO denominated External commercial borrowings and bonds. The
derivative instruments are entered into for periods consistent with exposure of the underlying transactions:
Details of the derivative instruments are given below:
(Rs. in crores)
Notional Derivative Notional Derivative Notional Derivative Notional Derivative
Particulars amounts assets amounts liabilities amounts assets amounts liabilities
Interest rate risk:
Interest rate swaps 8,744.63 45.77 - - 40.00 1.83 15.00 0.37
Interest rate caps - 3.91 - - - - - -
Foreign currency risk:
Principal only swaps 1,769.50 11.50 - - - - - -
Currency swaps - - - - 2,402.33 18.67 2,849.90 83.05
Forward contracts 8,018.44 378.05 - - 374.86 1.22 - -
Cross currency interest rate swaps 6,389.23 319.50 - - - - - -
Total 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42

11 Receivables
(I) Trade receivables
(Rs. in crores)
As at As at
Trade receivables considered good-secured - -
Trade receivables considered good-unsecured 10.50 8.48
Trade receivables which have significant increase in credit risk - -
Trade receivables -credit impaired - -
Total 10.50 8.48
Less: Allowances for impairment loss - -
Total 10.50 8.48
(II) Other receivables

(Rs. in crores)
As at As at
Other receivables considered good-secured - -
Other receivables considered good-unsecured * 5.64 19.94
Other receivables which have significant increase in credit risk - -
Other receivables - credit impaired 2.10 1.58
Total 7.74 21.52
Less: Allowances for impairment loss on credit impaired other receivables 2.10 1.58
Total 5.64 19.94
There is no dues from directors or other officers of the Company or any firm or private company in which any director is a
partner, a director or a member.
Trade receivables are non-interest bearing and are generally on terms of 30 days.
*Includes receivables from associate Rs. Nil (March 31, 2019: Rs. 0.58 crores).
(Rs. in crores)
1-30 days 31-60 days 61-90 days 91-360 days More than 360 Total
Trade receivables days past due Current past due past due past due past due days past due
March 31, Estimated total gross carrying
- 10.22 0.28 - - - 10.50
2020 amount at default
ECL-simplified approach - - - - - - -
Net carrying amount - 10.22 0.28 - - - 10.50
7.98 0.07 0.43 - - - 8.48
Net carrying amount 7.98 0.07 0.43 - - - 8.48

11 Receivables (Contd.)
The managements expects no default in receipt of trade receivables; also there is no history of default observed by the
management. Hence, no ECL has been recognised on trade receivables.
(Rs. in crores)
Other receivables days past due Current past due past due past due past due days past due
- 2.46 1.73 1.71 0.31 1.53 7.74
ECL-simplified approach - 0.18 0.04 0.04 0.31 1.53 2.10
Net carrying amount - 2.28 1.69 1.67 - - 5.64
0.24 19.30 0.34 0.06 0.08 1.50 21.52
ECL-simplified approach - - - - 0.08 1.50 1.58
Net carrying amount 0.24 19.30 0.34 0.06 - - 19.94
Reconciliation of impairment allowance on other receivables:

(Rs. in crores)
Particulars Amount
Impairment allowance measured as per simplified approach
Impairment allowance as per April 01, 2018 1.92
Add: Addition during the year -
(Less): Reduction during the year (0.34)
Impairment allowance as per March 31, 2019 1.58
Add: Addition during the year 0.53
(Rs. in crores)
As at As at
12 Loans
(A)
Loans (at amortised cost)
i) Term loans 105,073.08 99,444.62
ii) Others -Unsecured loans 3,428.63 2,862.87
Total (A) - Gross 108,501.71 102,307.49
Less : Impairment loss allowance 6,270.08 5,556.00
Total ( A) - Net 102,231.63 96,751.49
(B)
i) Secured by tangible assets 105,061.35 99,440.23
ii) Secured by deposits 11.73 4.39
iii) Unsecured 3,428.63 2,862.87
Total ( B) - Gross 108,501.71 102,307.49
Less : Impairment loss allowance (refer note 62) 6,270.08 5,556.00
Total ( B) - Net 102,231.63 96,751.49
(C ) Loans in India
i) Public sector - -
ii) Others
Retail 107,959.44 101,790.38
Corporates 542.27 517.11
Total ( C) - Gross 108,501.71 102,307.49
Total ( C )- Net 102,231.63 96,751.49

12 Loans (Contd.)
Credit quality of assets
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit rating system and
year-end stage classification. The amounts presented are gross of impairment allowances. Details of the Company’s internal grading system are
explained in note 53.02 and policies on whether ECL allowances are calculated on an individual or collective basis are set out in note 53.02.02.06.
(Rs. in crores)
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Particulars collective collective collective collective collective collective
Internal rating grade
Performing
High grade 71,178.65 - - 71,178.65 52,834.58 - - 52,834.58
Standard grade 15,886.32 - - 15,886.32 21,265.18 - - 21,265.18
Sub-standard grade - 10,002.10 - 10,002.10 - 13,607.30 - 13,607.30
Past due but not impaired - 2,257.56 - 2,257.56 - 5,983.97 - 5,983.97
Non- performing - - 9,177.08 9,177.08 0.13 0.06 8,616.27 8,616.46
Total 87,064.97 12,259.66 9,177.08 108,501.71 74,099.89 19,591.33 8,616.27 102,307.49
An analysis of changes in the gross carrying amount as follows:

(Rs. in crores)
Year ended March 31, 2020 Year ended March 31, 2019
Particulars
Gross carrying amount opening 74,099.89 19,591.33 8,616.27 102,307.49 70,398.28 16,865.67 8,934.46 96,198.41
balance
New assets originated or purchased 43,005.82 7,356.58 1,113.47 51,475.87 40,762.97 9,240.97 2,339.34 52,343.28
Assets derecognised or repaid (31,192.03) (8,391.85) (3,662.42) (43,246.30) (32,302.58) (8,251.76) (3,332.56) (43,886.90)
(excluding write offs and includes
interest accruals adjusted)
Transfers to stage 1 30,922.99 (27,685.66) (3,237.33) - 7,333.10 (6,292.38) (1,040.72) -
Transfers to stage 2 (26,129.73) 30,711.25 (4,581.52) - (9,506.30) 10,374.80 (868.50) -
Transfers to stage 3 (3,235.91) (9,157.36) 12,393.27 - (2,186.45) (2,112.51) 4,298.96 -
Changes to contractual cash flows - - - - - - - -
due to modifications not resulting in
derecognition
Amounts written off (406.06) (164.63) (1,464.66) (2,035.35) (399.13) (233.46) (1,714.71) (2,347.30)
Gross carrying amount closing 87,064.97 12,259.66 9,177.08 108,501.71 74,099.89 19,591.33 8,616.27 102,307.49
balance

12 Loans (Contd.)
Reconciliation of ECL balance is given below:
(Rs. in crores)
General approach General approach
Particulars
ECL allowance - opening balance 1,472.80 1,113.46 2,969.74 5,556.00 1,393.04 965.36 3,094.39 5,452.79
New assets originated or purchased 887.83 489.55 382.72 1,760.10 1,929.56 664.44 949.21 3,543.21
Transfers to stage 1 2,611.27 (1,581.05) (1,030.22) - 731.99 (376.75) (355.24) -
Transfers to stage 2 (524.43) 2,014.89 (1,490.46) - (192.27) 488.28 (296.01) -
Transfers to stage 3 (63.94) (552.01) 615.95 - (47.46) (138.55) 186.01 -
Impact on year end ECL of exposures (1,821.42) (392.13) 3,202.88 989.33 (1,942.93) (255.86) 1,106.09 (1,092.70)
transferred between stages during
the year and reversal of ECL on
account of recovery
ECL allowance - closing balance 2,156.05 928.08 3,185.95 6,270.08 1,472.80 1,113.46 2,969.74 5,556.00
The contractual amount outstanding on loans that have been written off during the financial year, but were still subject to enforcement activity
was Rs. 1,447.19 crores at March 31, 2020 (March 31, 2019: Rs. 1,802.17 crores).

13 Investments
(Rs. in crores)
Amortised At Fair Others Total Amortised At Fair Others Total
Cost value (at cost) Cost value (at cost)
Through Through
profit or profit or
Particulars loss * loss *
i) Mutual funds * - 3.02 - 3.02 - 323.82 - 323.82
ii ) Government securities (refer 1,824.46 - - 1,824.46 1,495.15 - - 1,495.15
note 64)
iii) Debt securities 52.67 - - 52.67 52.67 - - 52.67
iv) Equity instruments - 3.36 - 3.36 - 3.58 - 3.58
v) Associates (at cost) - - 13.37 13.37 - - 13.37 13.37
vi) Pass through certificates 942.79 - - 942.79 877.81 - - 877.81
(unquoted)
vii) Certificate of deposits - - - - - 1,231.71 - 1,231.71
viii) Others (venture capital fund) - 1.04 - 1.04 - 0.97 - 0.97
Total Gross (A) 2,819.92 7.42 13.37 2,840.71 2,425.63 1,560.08 13.37 3,999.08
i) Investments outside India - - - - - - - -
ii) Investments in India 2,819.92 7.42 13.37 2,840.71 2,425.63 1,560.08 13.37 3,999.08
Total Gross (B) 2,819.92 7.42 13.37 2,840.71 2,425.63 1,560.08 13.37 3,999.08
Less : Allowance for impairment (42.23) - - (42.23) (0.01) - - (0.01)
loss (C)
Total - Net D = (A) - (C ) 2,777.69 7.42 13.37 2,798.48 2,425.62 1,560.08 13.37 3,999.07
More information regarding the valuation methodologies can be found in Note 52.10
* The Company received dividend of Rs. 0.19 crores (March 31, 2019: Rs. 4.99 crores) from its investments measured at fair value through profit
or loss, recorded as dividend income.

13 Investments (Contd.)
Investments carried at amortised cost
The table below shows the credit quality and the maximum exposure to credit risk per based on the Company’s internal credit
rating system and year-end stage classification. The amounts presented are gross of impairment allowances. Details of the
Company’s internal grading system for investments carried at amortised cost are explained in note 53.02.
(Rs. in crores)
Particulars individual individual individual individual
Performing
High grade 2,767.25 - - 2,767.25 2,425.63 - - 2,425.63
Standard grade - - - - - - - -
Non-performing - - - - - - - -
Individually Impaired - 52.67 - 52.67 - - - -
Total 2,767.25 52.67 - 2,819.92 2,425.63 - - 2,425.63
An analysis of changes in gross carrying amount and the corresponding ECLs on investments carried at amortised cost is
as follows:
(Rs. in crores)
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross carrying amount – 2,425.63 - - 2,425.63 2,267.04 52.67 - 2,319.71
opening balance
New assets originated or 1,190.59 - - 1,190.59 798.22 - - 798.22
purchased
Assets derecognised or (796.51) - - (796.51) (692.10) - - (692.10)
matured (excluding write-
offs)
Change in fair value 0.21 - - 0.21 (0.20) - - (0.20)
Transfers to stage 1 - - - - 52.67 (52.67) - -
Transfers to stage 2 (52.67) 52.67 - - - - - -
Closing balance 2,767.25 52.67 - 2,819.92 2,425.63 - - 2,425.63
Investment carried at amortised cost

(Rs. in crores)
Opening balance in ECL 0.01 - - 0.01 - 0.07 - 0.07
New assets originated or - - - - - - - -
purchased
Unwinding of discount - 0.93 - 0.93 - - - -
(recognised in interest
income)
Changes to models and 23.79 17.50 - 41.29 (0.06) - - (0.06)
inputs used for ECL
calculations
Closing balance in ECL 23.79 18.44 - 42.23 0.01 - - 0.01

(Rs. in crores)
As at As at
14 Other financial assets
Security deposits* 45.15 36.88
Total 45.15 36.88
*Net of allowance for impairment loss recognised on security deposit Rs. 0.60 crore (March 31, 2019: Rs. 1.28 crores).
(Rs. in crores)
As at As at
15 Current tax assets (net)
Advance income tax 249.10 106.58
[net of provision for income tax Rs. 2,910.66 crores
(March 31, 2019: Rs. 2,909.82 crores)]
Total 249.10 106.58
(Rs. in crores)
Freehold Freehold
Particulars Land Buildings Total Land Buildings Total
16 Investment property
Gross block at cost
Opening balance 0.70 1.45 2.15 0.70 1.45 2.15
Additions - - - - - -
Disposals - - - - - -
Closing balance 0.70 1.45 2.15 0.70 1.45 2.15
Accumulated depreciation and impairment
Opening balance - 0.09 0.09 - 0.06 0.06
Depreciation charge for the year - 0.03 0.03 - 0.03 0.03
Closing balance - 0.12 0.12 - 0.09 0.09
Net carrying amount 0.70 1.33 2.03 0.70 1.36 2.06
(i) Amounts recognised in Statement of Profit and Loss for Investment property
(Rs. in crores)
Rental income from investment property 0.22 0.22
Direct operating expenses arising from investment property that generated rental
0.06 0.03
income during the year
Direct operating expenses arising from investment property that did not generate
- -
rental income during the year
Profit from investment property before depreciation 0.16 0.19
Depreciation charge for the year 0.03 0.03
Profit from investment property after depreciation 0.13 0.16
(ii)
Contractual obligations
The Company has no contractual obligations to purchase, construct or develop investment property. However, the
responsibility for its repairs, maintenance or enhancements is with the Company.
(iii)
Fair value
The fair value of the investment property as at March 31, 2020 is Rs. 6.43 crores (March 31, 2019: Rs. 6.43 crores).
(iv)
Pledged details
Investment property is not pledged.

16 Investment property (Contd.)
124
(v)
Estimation of fair value
The fair values of investment property is determined by guidance value given by the local government of the area where the investment properties are located.
(vi)
Leasing arrangements
Investment properties are leased out to tenants. Agreements provide for cancellation by either party or contain clause for escalation and renewal of agreements. The
non-cancellable operating lease agreement is for a period of 108 months.
17 Property, plant and equipment
(Rs. in crores)

Particulars Freehold Building Plant and Computers Office Furniture Vehicles Leasehold Total
Land equipment equipment and fixtures improvement
Gross block at cost
As at April 01, 2018 0.15 2.72 8.82 33.62 17.81 20.24 0.54 62.26 146.16
Additions 0.50 0.78 1.86 19.20 8.40 6.73 - 31.92 69.39
Disposals - 1.11 0.90 7.95 1.60 1.17 0.27 5.79 18.79
Adjustment* - - - - 0.01 - - (0.01) -
As at March 31, 2019 0.65 2.39 9.78 44.87 24.62 25.80 0.27 88.38 196.76
Additions - - 1.53 17.66 9.12 5.38 - 22.74 56.43
Disposals 0.06 - 0.29 8.24 2.15 0.78 0.02 6.13 17.67
Adjustment* - - 0.07 - - 0.29 - (0.36) -
As at March 31, 2020 0.59 2.39 11.09 54.29 31.59 30.69 0.25 104.63 235.52

As at April 01, 2018 - 0.04 1.00 5.70 4.66 1.96 0.03 14.54 27.93
Charge for the year - 0.05 1.36 12.37 4.98 2.84 0.08 20.24 41.92
Disposals - 0.17 0.80 7.27 1.48 1.00 0.26 5.57 16.55
Adjustment* - - - - 0.01 - - (0.01) -
As at March 31, 2019 - (0.08) 1.56 10.80 8.17 3.80 (0.15) 29.20 53.30
Disposals - - 0.23 7.44 1.98 0.66 0.01 5.92 16.24
Adjustment* - - 0.02 - - 0.10 - (0.12) -
As at March 31, 2020 - (0.03) 2.82 18.92 11.68 6.52 (0.09) 45.82 85.64
Net carrying amount as at March 31, 2019 0.65 2.47 8.22 34.07 16.45 22.00 0.42 59.18 143.46
*Adjustment is on account of regrouping of property, plant and equipment and other intangible assets.
Carrying value of property, plant and equipment pledged as collateral for liabilities as at March 31, 2020 is Rs. 0.36 crores (March 31, 2019: Rs. 0.34 crores).
18 Leases
A] This note provides information for leases where the Company is a lessee.
(i) Amounts recognised in the balance sheet
The Balance sheet shows the following amounts relating to leases
Right-of-use assets (Rs. in crores)
As at
Particulars March 31, 2020
Office premises
As at March 31, 2019 -
Right-of-use assets on transition 371.83
Additions 71.36
Depreciation charge for the year (91.17)
Deletions (24.18)
Net carrying amount as at March 31, 2020 327.84
Lease liabilities
Maturity analysis of lease liabilities (Rs. in crores)
As at
Less than 1 year 80.97
1 to 2 years 74.50
2 to 3 years 61.40
3 to 4 years 47.99
4 to 5 years 35.80
More than 5 years 62.15
Total 362.81
Effective April 01, 2019, the Company adopted Ind AS 116 “Leases” and applied the same to the lease contracts existing
on April 01, 2019 using the modified retrospective approach, recognising right-of-use assets and adjusted lease liability.
As per Ind AS 116, lease commitments are recognised as lease liability and need not be disclosed under contingent
liabilities and commitments.
The Company has taken various office premises under lease. Certain agreements provide for cancellation by either
party or certain agreements contains clause for escalation and renewal of agreements. The non-cancellable operating
lease agreements are ranging for a period 11 to 180 months. There are no restrictions imposed by lease arrangements.
(Rs. in crores)
As at
(ii) Amounts recognised in the Statement of Profit or Loss
Depreciation charge of right-of-use assets (included in depreciation, amortisation and impairment) 91.17
Interest expense (included in finance costs) 33.73
Expense relating to short-term leases (included in other expenses) 9.88
Expense relating to variable lease payments not included in lease liabilities (included in other
-
expenses).
Income from subleasing right-of-use assets(included in other income) 8.61
(iii) Gains or losses arising from sale and leaseback transactions -
(iv) The total cash outflow for leases during the year ended March 31, 2020 110.46
The weighted average incremental borrowing rate of 9.09% has been applied to lease liabilities recognised in the balance
sheet as at April 01, 2019 .
The difference between the operating lease commitments disclosed applying Ind AS 17 as of March 31, 2019 and the
value of the lease liability arrived using the incremental borrowing rate as of April 01, 2019 is primarily on account of
exclusion of short term leases in measuring the lease liability in accordance with Ind AS 116.

18 Leases (Contd.)
The Company does not face a significant liquidity risk with regard to its lease liabilities as the assets are sufficient to meet
the obligations related to lease liabilities as and when they fall due.
B] This note provides information for leases where the Company is a lessor.
The Company has given office premises under lease. The income from lease recognised in the Statement of Profit and Loss
are Rs. 0.22 crore (March 31, 2019: Rs. 0.22 crore). Agreements provide for cancellation by either party or contain clause
for escalation and renewal of agreements. The non-cancellable operating lease agreement is for a period of 108 months.
Future minimum lease receivables under non-cancellable leases as at March 31, 2020 are as follows:
(Rs. in crores)
As at As at
Within one year 0.16 0.15
After one year but not more than five years 0.42 0.58
More than five years - -
Total 0.58 0.73

(Rs. in crores)
Particulars Computer software
19 Other intangible assets #
Gross block at cost
As at April 01, 2018 2.63
Additions 1.36
Disposals 1.93
As at March 31, 2019 2.06
Additions 1.96
Disposals -
As at March 31, 2020 4.02
Accumulated amortisation and impairment:
As at April 01, 2018 0.89
Charge for the year 1.03
Disposals 1.83
Adjustment* 0.00
As at March 31, 2019 0.09
Disposals -
As at March 31, 2020 1.35
* Adjustment is on account of regrouping of property, plant and equipment and other intangible assets
# Other than internally generated
Amounts less than Rs. 1.00 lac are presented as Rs. 0.00 crores in the above statement.

(Rs. in crores)
As at As at
20 Other non-financial assets
Deferred lease rental - 8.67
Goods and services tax credit (input) receivable 66.86 52.06
Prepaid expenses 8.21 8.32
Capital advances 0.86 3.04
Duties paid under protest 86.40 64.68
Other non-financial assets 7.24 6.89
Total 169.57 143.66
21 Payables
Trade payables
(Rs. in crores)
As at As at
(i) total outstanding dues of micro enterprises and small enterprises
0.40 -
(refer note 54)
(ii) total outstanding dues of creditors other than micro enterprises
143.44 133.46
and small enterprises*
Total 143.84 133.46
*Includes payable to associate Rs. 0.41 crores (March 31, 2019: Rs. Nil).
Other payables
(Rs. in crores)
As at As at
(i) total outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises
1.13 2.72
and small enterprises
Total 1.13 2.72
(Rs. in crores)
As at As at
22Debt securities
At amortised cost
Secured
Redeemable non-convertible debentures
- Public issue ¥ 5,796.78 5,770.85
- Privately placed ¥¥ 14,204.14 19,127.33
External commercial bond 12,607.01 2,769.96
Senior secured notes 1,204.92 2,564.99
Unsecured
- Privately placed 454.11 444.83
Commercial papers - 3,503.80
Total 34,266.96 34,181.76
Debt securities in India 20,455.03 28,846.81
Debt securities outside India 13,811.93 5,334.95
Total 34,266.96 34,181.76
¥ includes Rs. 40.50 crores (March 31, 2019 Rs.14.49 crores) issued to related parties including Directors.
¥¥ includes Rs. Nil (March 31, 2019 Rs. 82.81 crores) issued to related parties.

(Rs. in crores)
As at As at
23 Borrowings (other than debt securities)
At amortised cost
Secured
Term loan from banks - INR 13,259.27 11,831.39
Term loan from banks - FCNR - 411.52
Term loan from financial institutions/corporates - INR 1,446.29 3,413.04
External commercial borrowing - FCNR 4,300.61 2,376.53
Loans repayable on demand from banks (Cash credit from banks) 2,016.39 1,418.30
Other loans - INR -Securitisation liabilities 21,452.04 17,738.52
Total 42,474.60 37,189.30
Borrowings in India 38,173.99 34,401.25
Borrowings outside India 4,300.61 2,788.05
Total 42,474.60 37,189.30
(Rs. in crores)
As at As at
24 Deposits
At amortised cost
Unsecured
Deposits
i. Public deposits * 11,768.48 10,169.76
ii. From corporate ** 152.22 145.32
iii. Inter-corporate deposits from associate 39.42 26.38
Total 11,960.12 10,341.46
* includes Rs. 1.58 crores (March 31, 2019 Rs. 1.42 crores) accepted from related parties including Director.
** includes Rs. 1.55 crores (March 31, 2019 Rs. 14.99 crores) accepted from related parties.
(Rs. in crores)
As at As at
25 Subordinated liabilities
At amortised cost
Unsecured
Subordinated debts - Debentures # 5,138.00 5,243.09
Subordinated debts - Bonds ## 532.07 958.79
Total 5,670.07 6,201.88
Subordinated debts in India 5,670.07 6,201.88
Subordinated debts outside India - -
Total 5,670.07 6,201.88
# includes Rs. 422.19 crores (March 31, 2019 Rs. 470.39 crores) issued to related parties.
## includes Rs. 3.17 crores (March 31, 2019 Rs. 5.92 crores) issued to related parties.

i Debt securities
A) Redeemable non-convertible debenture (NCD) -secured

i) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2013)-2
Terms of repayment as on March 31, 2020
(Rs. in crores)
Redeemable at par/premium Rate of interest
Total
(from the date of the Balance Sheet) < 10% >= 10% < 12% >= 12% < 14%
12-24 months - 104.94 - 104.94
Total - 104.94 - 104.94

(Rs. in crores)
Total
12-24 months - 100.99 - 100.99
Total - 100.99 - 100.99
Nature of security
Secured by specific assets covered under hypothecation loan agreements and by way of exclusive charge and equitable
mortgage of immovable property.
The Company had utilised the entire sum of Rs. 500.00 crores raised from public issue (net off expenses) towards asset
financing activities as per the objects stated in the prospectus for the issue.
Debentures may be bought back subject to applicable statutory and/or regulatory requirements, upon the terms and
conditions as may be decided by the Company.
As per the terms of the issue NCD 2013 ( 2 ) Rs. 114.68 crores were redeemed on October 23, 2018.
As per the terms of the issue Rs. 294.01 crores were redeemed on October 24, 2016.
ii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2014)

(Rs. in crores)
Redeemable at par/premium (from the date of the Rate of interest
Total
Balance Sheet) < 10% >= 10% < 12% >= 12% < 14%
12-24 months 35.05 198.45 - 233.50
Total 35.05 198.45 - 233.50

(Rs. in crores)
Total
24-36 months - 227.59 - 227.59
12-24 months 27.80 437.16 - 464.96
Total 27.80 664.75 - 692.55
Nature of security
The Company had utilised the entire sum of Rs. 1,974.85 crores raised from public issue (net off expenses) towards asset

i Debt securities (Contd.)
As per the terms of the issue Rs. 427.15 crores were redeemed on July 15, 2019.
As per the terms of the issue Rs. 1,348.33 crores were redeemed on July 15, 2017.
iii) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 1)
(Rs. in crores)
Total
over 60 months 496.11 - - 496.11
36-48 months 825.13 - - 825.13
12-24 months 2,427.46 - - 2,427.46
Total 3,748.70 - - 3,748.70

(Rs. in crores)
Total
over 60 months 609.81 - - 609.81
48-60 months 813.37 - - 813.37
24-36 months 2,407.61 - - 2,407.61
Total 3,830.79 - - 3,830.79
Nature of security
The Company had utilised the entire sum of Rs. 3,648.52 crores raised from public issue (net off expenses) towards
repayment of borrowings as per the objects stated in the prospectus for the issue.
As per the terms of the issue Rs. 107.40 crores were redeemed on December 26, 2019
iv) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 2)
(Rs. in crores)
Total
over 60 months 71.51 - - 71.51
36-48 months 262.12 - - 262.12
12-24 months - 295.02 - 295.02
Total 333.63 295.02 - 628.65

(Rs. in crores)
Total
over 60 months 71.59 - - 71.59
48-60 months 254.12 - - 254.12
24-36 months - 288.65 - 288.65
Total 325.71 288.65 - 614.36


Nature of security
The Company had utilised the entire sum of Rs. 606.79 crores raised from public issue (net off expenses) for the purpose
of onward disbursements as per the objects stated in the prospectus for the issue.
v) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 3)
(Rs. in crores)
Total
over 60 months 59.87 - - 59.87
36-48 months 232.06 - - 232.06
12-24 months - 253.76 - 253.76
Total 291.93 253.76 - 545.69

(Rs. in crores)
Total
over 60 months 59.73 - - 59.73
48-60 months 226.96 - - 226.96
24-36 months - 245.47 - 245.47
Total 286.69 245.47 - 532.16
Nature of security
vi) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2019 - 1)
(Rs. in crores)
Total
over 60 months 20.48 41.75 - 62.23
48-60 months 33.47 66.95 - 100.42
24-36 months 41.21 86.90 - 128.11
12-24 months - 54.98 - 54.98
Total 95.16 250.58 - 345.74
Outstanding as at March 31, 2019 is Rs. Nil.
Nature of security
The Company has utilised the entire sum of Rs. 339.94 crores raised from public issue (net off expenses) for the purpose

vii) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2019 - 2)
(Rs. in crores)
Total
Over 60 months 26.19 - - 26.19
48-60 Months 64.80 - - 64.80
24-36 months 78.09 20.48 - 98.57
Total 169.08 20.48 - 189.56

Nature of security
viii) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
Terms of repayment as on March 31, 2020 (Rs. in crores)
Total
(from the date of the Balance Sheet) < 10%* ¥^ >= 10% < 12% *^ >= 12% < 14% >=14% <16%
over 60 months 524.89 - - - 524.89
48-60 months 154.80 1,299.08 - - 1,453.88
36-48 months 210.38 172.02 - - 382.40
24-36 months 1,780.18 202.41 148.38 - 2,130.97
12-24 months ^ 4,481.32 804.89 - - 5,286.21
upto 12 months *¥^ 4,045.92 379.87 - - 4,425.79
Total 11,197.49 2,858.27 148.38 - 14,204.14
* Includes 1 NCD of Rs. 666.00 crores partly paid to the extent of Rs. 666,000/- (50% redeemed)
* Includes 1 NCD of Rs. 25.00 crores partly paid to the extent of Rs. 111,111.11
^NCD amounting to Rs. 1,867.30 crores issued at zero coupon rates and redeemable at premium are included in above on
the basis of IRR.
¥ Out of the above NCDs having put/call option are as under (Rs. in crores)
Sr No Rate of interest Amount Put/Call option date
1 8.87% 110.00 August 7, 2020
Total 110.00

Redeemable at par/premium (from Rate of interest
Total
the date of the Balance Sheet) < 10% *^¥ >= 10% < 12% ^ >= 12% < 14% >=14% <16%
over 60 months 692.23 1,334.80 - - 2,027.03
48-60 months 210.24 190.84 - - 401.08
36-48 months ^ 1,522.76 - 145.77 - 1,668.53
24-36 months ^¥ 4,687.66 220.02 - - 4,907.68
12-24 months*^¥ 2,227.78 980.85 199.10 13.61 3,421.34
upto 12 months ¥^ 6,701.67 - - - 6,701.67
Total 16,042.34 2,726.51 344.87 13.61 19,127.33
* Includes 1 NCD of Rs. 300.00 crores partly paid to the extent of Rs. 500,000/-

* Includes 1 NCD of Rs. 25.00 crores partly paid to the extent of Rs.111,111.11
^NCD amounting to Rs. 2,177.00 crores issued at zero coupon rates and redeemable at premium are included in above
on the basis of IRR.
1 8.87% 110.00 August 7, 2020
2 8.10% 300.00 March 23, 2020
3 8.79% 45.00 May 22, 2019
Total 455.00
Nature of security
Secured by specific assets covered under hypothecation loan and by way of exclusive charge and equitable mortgage of
immovable property.
(Rs. in crores)
As at As at
Total non-convertible debentures- secured
March 31, 2020 March 31, 2019
Public issue (i+ii+iii+iv+v+vi+vii) 5,796.78 5,770.85
Privately placed (viii) 14,204.14 19,127.33
Total non-convertible debentures- secured 20,000.92 24,898.18
B) External commercial bond (ED) Secured

Privately Placed Redeemable External commercial bond of Rs. 100,000/- each
Detail < 10% >= 10% < 12% Total
36-48 months 3,808.17 - 3,808.17
24-36 months 5,772.26 - 5,772.26
12-24 months - 3,026.58 3,026.58
Total 9,580.43 3,026.58 12,607.01

Detail Rate of interest Total
24-36 months >=10% <12% 2,769.96
Total 2,769.96
During the year ended March 31, 2020, the Company issued and allotted USD 250,000,000 5.3750% senior secured notes
due 2022 in offshore market (notes) equivalent to Rs. 1,714.38 crores under USD 2,000,000,000 Global Medium Term
Note Programme. The said notes are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the issue of the notes
have been utilised for the purpose of onward lending and other activities as may be permitted by the ECB Directions.
due 2023 in offshore market (Social Bonds) equivalent to Rs. 3,541.75 crores under USD 3,000,000,000 Global Medium
Term Note Programme. The said Social Bonds are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the
issue of the Social Bonds have been utilised for the purpose of onward lending and other activities as per the Company’s
Social Finance Framework and as may be permitted by the ECB Directions.
During the year ended March 31, 2019, the Company issued and allotted senior secured notes in offshore market (notes)
aggregating to INR 2,849.90 crores consisting of 5.70% notes due 2022 under INR 5,000 crores Medium Term Note
Programme. The notes issued by the Company are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the
issue have been utilised for the purpose of onward disbursements.

Nature of security
Secured by way of an exclusive fixed charge over hypothecation loan receivables of the Company.
C) Senior secured notes
Senior secured notes of Rs. 10,000,000/- each
Terms of repayment
(Rs. in crores)
As at As at
Detail Rate of interest
March 31, 2020 March 31, 2019
48-60 months <10% - 882.97
36-48 months <10% 885.54 -
24-36 months <10% - 317.48
12-24 months <10% - 1,364.54
upto 12 months <10% 319.38 -
Total 1,204.92 2,564.99
During the year ended March 31, 2018, the Company had issued senior secured notes in offshore market (notes) aggregating
to INR 1,160 crores consisting of INR 840 crores 8.10% notes due 2023 and INR 320 crores 7.90% notes due 2021 payable
in US dollars under INR 5,000 crores Medium Term Note Programme. The notes issued by the Company are listed on
Singapore Stock Exchange (SGX- ST).
The Company had utilised the entire sum of Rs. 1,160.00 crores raised from Senior secured notes towards asset financing
activities as per the objects stated in the prospectus for the issue.
During the year ended March 31, 2017, the Company had issued Rs. 1,350.00 crores 8.25 % senior secured notes at the
price of 100.18% that are due for repayment on February 18, 2020. The said notes (with ISIN - XS 1549374475) are listed
and traded on the Singapore Exchange (SGX-ST) with a minimum board lot size of S $200,000.
As per the terms of the issue, Rs. 1,350.00 crores were redeemed on February 18, 2020.
Nature of security
D) Redeemable non-convertible debenture (NCD) -unsecured
i) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
(Rs. in crores)
Total
48-60 months - - 454.11 454.11
Total - - 454.11 454.11

Total
over 60 months - - 444.83 444.83
Total - - 444.83 444.83

E) Commercial paper (CP) - unsecured

Privately placed redeemable commercial paper of Rs. 500,000/- each
Redeemable at par (from the date of the Rate of interest
Total
Balance Sheet) < 10% >= 10% < 12% >= 12% < 14%
upto 12 months 3,503.80 - - 3,503.80
Total 3,503.80 - - 3,503.80
II Borrowings (other than debt securities)
A) Term loans from banks -secured (INR)

As at March 31, 2020
Terms of repayment # (Rs. in crores)
Tenure (from the date of the
Rate of interest Repayment details Amount
Balance Sheet)
48-60 months 8.50% to 9.50% 20 instalments of quarterly frequency 2,265.25
36-48 months 8.91% to 9.68% 20 instalments of quarterly frequency 583.49
24-36 months 8.11% to 9.63% 1 to 36 instalments of bullet, monthly, quarterly 2,469.48
and specific frequency
12-24 months 7.00% to 9.90% 1 to 20 instalments of bullet, quarterly and specific 3,112.87
frequency
upto 12 months 7.47% to 12.25% 1 to 36 instalments of bullet, monthly, quarterly, 4,828.18
half-yearly and specific frequency
Total 13,259.27
# Loans are classified in respective time buckets based on option date.

Nature of security
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed/current assets relating
to hypothecation loans.

Balance Sheet)
48-60 months 8.50% to 10.74% 20 to 21 instalments of quarterly frequency 749.37
24-36 months 8.30% to 9.85% 12 to 20 instalments of quarterly and specific 2,169.61
frequency
12-24 months 8.45% to 10.35% 7 to 36 instalments of monthly, quarterly and 2,256.55
specific frequency
half-yearly and yearly frequency
Total 11,831.39
Nature of security
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed/current assets relating to
hypothecation loans.

II Borrowings (other than debt securities) (Contd.)
B) Term loans from banks -secured (FCNR)


Balance Sheet)
upto 12 months 2.59% to 9.37% 1 to 10 instalments of bullet, quarterly and 411.52
specific frequency
Total 411.52
Nature of security
C) Term loans from financial institutions/corporates -secured (INR)

Balance Sheet)
48-60 months 10.20% 11 instalments of specific frequency 227.76
12-24 months 7.95% to 9.21% 11 to 20 instalments of quarterly and 646.94
specific frequency
upto 12 months 8.60% to 9.29% 1 to 20 instalments of bullet and quarterly 110.57
frequency
Total 1,446.29
Nature of security
Balance Sheet)
over 60 months 10.20% 11 instalments of half-yearly and specific 320.35
frequency
48-60 months 10.50% 11 instalments of half-yearly and specific 712.29
frequency
36-48 months 8.40% to 9.98% 11 to 20 instalments of quarterly and 1,121.92
specific frequency
12-24 months 8.75% to 9.27% 1 to 20 instalments of bullet and quarterly 771.76
frequency
half-yearly frequency
Total 3,413.04
Nature of security

D) External commercial borrowing

Terms of repayment (Rs. in crores)
Balance Sheet)
over 60 months 8.63% to 11.06% 11 to 13 instalments of half-yearly and 1,694.61
specific frequency
36-48 months 9.83% to 10.02% Bullet frequency 2,606.00
Total 4,300.61
Nature of security

Balance Sheet)
Total 2,376.53
Nature of security
E) Other loans - INR -Securitisation liabilities

Balance Sheet)
above 60 months 9.40% to 10.02% 1 to 57 instalments monthly frequency 676.13
48-60 months 7.99% to 10.97% 1 to 63 instalments monthly frequency 9,882.22
36 - 48 months 8.32% to 10.56% 1 to 61 instalments monthly frequency 6,053.47
12 - 24 months 7.00% to 7.53% 1 to 55 instalments monthly frequency 303.11
below 12 months 8.28% to 10.21% 1 to 57 instalments monthly frequency 2,011.08
Total 21,452.04
Nature of security
Balance Sheet)
48-60 months 8.31% to 10.38% 1 to 61 instalments of monthly frequency 9,473.46
36 - 48 months 6.90% to 8.81% 1 to 60 instalments of monthly frequency 5,795.92
12 - 24 months 7.54% to 8.30% 1 to 55 instalments of monthly frequency 298.82
Total 17,738.52
Nature of security

F) Loans repayable on demand from banks (Cash credit from banks)

(Rs. in crores)
Particulars Rate of interest As at March 31, 2020
Secured by hypothecation of specific assets 8.00 % to 11.40 % 2,016.39
covered under hypothecation loan agreements
Total 2,016.39
(Rs. in crores)
Total 1,418.30

III Deposits
A) Deposits from public - unsecured -[refer note 64]

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 1,010.22 - 1,010.22
36-48 months 1,140.06 - 1,140.06
24-36 months 3,089.58 - 3,089.58
12-24 months 3,766.76 - 3,766.76
upto 12 months 2,761.85 - 2,761.85
Total 11,768.47 - 11,768.47

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 1,050.68 - 1,050.68
36-48 months 944.76 - 944.76
24-36 months 3,583.09 - 3,583.09
12-24 months 2,201.39 - 2,201.39
upto 12 months 2,093.31 296.53 2,389.84
Total 9,873.23 296.53 10,169.76

III Deposits (Contd.)
(Rs. in crores)
As at As at
Particulars
March 31, 2020 March 31, 2019
Total Deposits from public 11,768.47 10,169.76
B) Deposits from corporates - unsecured

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 4.53 - 4.53
36-48 months 2.16 - 2.16
24-36 months 18.08 - 18.08
12-24 months 71.44 - 71.44
upto 12 months 56.01 - 56.01
Total 152.22 - 152.22

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 16.54 - 16.54
36-48 months 6.13 - 6.13
24-36 months 24.02 - 24.02
12-24 months 35.17 - 35.17
upto 12 months 63.12 0.34 63.46
Total 144.98 0.34 145.32
C) Inter-corporate deposits from associate (Rs. in crores)

As at
Tenure (from the date of the Balance Sheet) Rate of interest Repayment details
March 31, 2020
upto 12 months 7.50% Bullet repayment 39.42
Total 39.42
(Rs. in crores)
As at
March 31, 2019
Total 26.38
Iv Subordinated liabilities
A) Subordinated liabilities -unsecured - Bonds

i) Privately placed subordinated debts of Rs. 1,000/- each
Redeemable at par (from the date Rate of interest
Total
of the Balance Sheet) <10% >=10% <12% >=12% <14%
upto 12 months - 532.07 - 532.07
Total - 532.07 - 532.07

iv Subordinated liabilities (Contd.)

Redeemable at par (from the date of Rate of interest
Total
the Balance Sheet) <10% >=10% <12% >=12% <14%
12-24 months - 492.67 - 492.67
upto 12 months - 466.12 - 466.12
Total - 958.79 - 958.79
(Rs. in crores)
As at As at
Subordinated liabilities (unsecured) - Bonds
March 31, 2020 March 31, 2019
Privately placed 532.07 958.79
Total Subordinated liabilities (unsecured) - Bonds 532.07 958.79
B) Subordinated liabilities -unsecured - Debentures

i) Privately placed subordinated liabilities of Rs. 100,000/- each
Total
upto 12 months - 74.94 - 74.94
Total - 74.94 - 74.94

Total
12-24 months - 74.92 - 74.92
upto 12 months - 67.04 - 67.04
Total - 141.96 - 141.96
ii) Privately placed subordinated liabilities of Rs. 1,000,000/- each

Total
over 60 months 1,570.91 135.51 - 1,706.42
48-60 months 40.97 531.22 1,609.30 2,181.49
36-48 months - 332.37 - 332.37
24-36 months - 308.85 - 308.85
12-24 months - - 51.86 51.86
upto 12 months - 482.07 - 482.07
Total 1,611.88 1,790.02 1,661.16 5,063.06

Total
over 60 months 1,611.01 662.08 1,580.12 3,853.21
48-60 months - 332.10 - 332.10
36-48 months - 308.59 - 308.59
24-36 months - - 51.77 51.77
12-24 months - 481.33 - 481.33
upto 12 months - 74.13 - 74.13
Total 1,611.01 1,858.23 1,631.89 5,101.13

(Rs. in crores)
As at As at
Subordinated liabilities (unsecured) - Debentures
March 31, 2020 March 31, 2019
Privately placed (i+ii) 5,138.00 5,243.09
Total Subordinated liabilities (unsecured) - Debentures 5,138.00 5,243.09
(Rs. in crores)
As at As at
26 Other financial liabilities
Investor education and protection fund shall be credited by the following
amounts (as and when due)
- Unclaimed dividend 10.57 10.69
- Unclaimed matured deposits and interest accrued thereon 150.02 173.40
- Unclaimed matured debentures and interest accrued thereon 15.45 18.33
- Unclaimed matured subordinated debts and interest accrued thereon 81.69 46.61
Temporary credit balance in bank accounts 26.63 68.95
Payable on account of assignment 78.78 131.67
Payable to dealers 0.99 6.20
Payable to employees 146.41 125.15
Retention money and other sundry liabilities 217.27 217.73
Other liabilities * 184.51 217.75
Total 912.32 1,016.48
* Other liabilities include amount payable to Banks for credit card payments, settlement dues payable to resigned employees.
(Rs. in crores)
As at As at
27 Current tax liabilities (net)
For taxation
102.02 102.97
[net of advance tax Rs. 1,077.82 crores (March 31, 2019: Rs. 2.64 crores )]
Total 102.02 102.97
(Rs. in crores)
As at As at
28 Provisions
For employee benefits
For gratuity (refer note 46 ) 3.37 1.28
For compensated absences (leave encashment and availment) 34.06 27.47
For others
For undrawn loan commitment 16.15 11.76
For taxes- contested 92.75 92.75
Total 146.33 133.26

28 Provisions (Contd.)
Financial guarantee obligation
An analysis of changes in the gross carrying amount in relation to financial guarantee exposure is, as follows:
Gross exposure reconciliation (Rs. in crores)
Opening balance of outstanding exposure - 871.76
Additions - -
Deletions - (871.76)
Closing balance of outstanding exposure - -
Reconciliation of ECL on financial guarantee obligation is given below:

(Rs. in crores)
Particulars Simplified approach Simplified approach
Financial guarantee obligation - opening balance - 72.93
Additions - -
Deletions - (72.93)
Financial guarantee obligation - closing balance - -
Loan commitments
Credit quality of exposure
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit
Company’s internal grading system are explained in Note 53.02 and policies on whether ECL allowances are calculated on
an individual or collective basis are set out in Note 53.02.02.06.
(Rs. in crores)

Particulars Stage 1 Collective Stage 1 Collective
Performing
High grade 311.87 471.92
Total 311.87 471.92
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to other
undrawn loan commitments is, as follows:
Gross exposure reconciliation
(Rs. in crores)
Particulars Stage 1 Stage 1
Opening balance of outstanding exposure 471.92 124.86
New exposures 233.39 449.02
Exposures derecognised or matured/repaid (excluding
(393.44) (101.96)
write offs)
Closing balance of outstanding exposure 311.87 471.92

Reconciliation of ECL balance in relation to other undrawn loan commitments is given below:
(Rs. in crores)
ECL allowance - opening balance 11.76 5.05
Exposures derecognised or matured (excluding write offs) (6.39) (4.42)
ECL allowance - closing balance 16.15 11.76
(Rs. in crores)
As at As at
29 Other non-financial liabilities
Statutory dues payable 73.96 54.87
Advance from customers 9.32 14.62
Total 83.28 69.49
(Rs. in crores)
As at As at
30 Equity share capital
Authorised:
647,000,000 (March 31, 2019: 647,000,000) equity shares of Rs.10/- each 647.00 647.00
95,000,000 (March 31, 2019: 95,000,000) preference shares of Rs.100/- each 950.00 950.00
1,597.00 1,597.00
Issued share capital
226,888,877 (March 31, 2019: 226,936,877) equity shares of Rs. 10/- each 226.89 226.94
Subscribed share capital
Paid up (fully paid up)
Equity shares
226,882,736 (March 31, 2019: 226,882,736) equity shares of Rs. 10/- each fully 226.88 226.88
paid up
226.88 226.88
Nil [March 31, 2019: 48,000 equity shares of Rs.10/- each (Rs. 5/- each paid up
- 0.02
forfeited)] *
Total Equity 226.88 226.90
* The shareholders in their 40th annual general meeting held on June 27, 2019 considered and approved the cancellation
of the forfeited shares from the issued and subscribed share capital of the Company.

30 Equity share capital (Contd.)
a. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year
Number of
Particulars shares (Rs. in crores)
As at March 31, 2018 226,882,736 226.88
Issued during the year - -
As at March 31, 2019 226,882,736 226.88
As at March 31, 2020 226,882,736 226.88
b. Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is
entitled to one vote per share. The dividend is subject to the approval of the shareholders in the ensuing annual general
meeting.
During the year ended March 31, 2020, the total dividend per equity share proposed for distribution to equity shareholders
is Rs. 5.00 (March 31, 2019 : Rs. 12.00). Out of the said total dividend proposed for the year ended March 31, 2020, amount
of interim dividend paid during the year was Rs. 5.00 (March 31, 2019 : Rs. 5.00) per equity share and amount of final
dividend proposed by the Board of Directors is Rs. Nil (March 31, 2019: Rs. 7.00) per equity share. The Board of Directors
at its meeting held on October 24, 2019, had declared interim dividend of Rs. 5/- per equity share of Rs. 10/- each for the
financial year 2019-2020. The payment was made on November 19, 2019. In order to conserve cash resources to face the
challenges and the contingencies created by Corona virus pandemic, the Board of Directors have not recommended the
final dividend. As such, the interim dividend shall be the final dividend for the financial year 2019-20.
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.
c. Aggregate number of equity shares issued for consideration other than cash during the period of five years immediately
preceding the reporting date:
Nil.
d. Details of shareholders holding more than 5% equity shares in the Company
Details of shareholding As at March 31, 2020 As at March 31, 2019

Number of Number of
Name of the shareholder % holding % holding
shares shares
Equity shares of Rs. 10/- each
Shriram Capital Limited 59,504,947 26.23% 59,173,023 26.08%
Piramal Enterprises Limited Nil Nil 22,600,000 9.96%
e. Refer note 51- Capital management for the Company’s objectives, policies and processes for managing capital
f. Proposed dividends on equity shares:
(Rs. in crores)
As at As at
Proposed dividend on equity shares for the year ended on
- 158.82
March 31, 2020: Rs. Nil per share (March 31, 2019: Rs. 7.00 per share)
Tax on proposed dividend - 32.65
Total - 191.47

(Rs. in crores)
As at As at
31 Other Equity
Statutory reserve (Pursuant to Section 45-IC of The RBI Act, 1934)
Opening Balance 3,168.55 2,654.55
Add: Transfer from retained earnings 500.38 514.00
Closing balance 3,668.93 3,168.55
Securities premium account 1,754.81 1,754.81
Capital reserve
Opening Balance 27.62 27.62
Add: Transfer from share forfeiture account 0.02 -
Closing balance 27.64 27.62
Capital redemption reserve 53.88 53.88
Debenture redemption reserve

Less: Transfer to retained earnings on account of redemption (109.47) -
Less: Transfer to general reserve on account of redemption - (93.44)
General reserve
Add: Transfer from debenture redemption reserve - 93.44
Other comprehensive income

Opening balance (4.92) (2.60)
Add: Other comprehensive income / (loss) for the year (net of tax) (4.74) (2.32)
Closing balance (9.66) (4.92)
Retained earnings
Opening balance 8,070.47 6,829.82
Add: Profit for the current year 2,501.84 2,563.99
Add / Less: Appropriations
Transfer to statutory reserve as per Section 45-IC of The RBI Act, 1934 (500.38) (514.00)
Transfer to general reserve (250.19) (257.00)
Transfer to/from debenture redemption reserve (235.79) (251.47)
Interim dividend (113.44) (113.44)
Tax on interim dividend (23.32) (23.32)
Final dividend (158.82) (136.13)
Tax on final dividend (32.64) (27.98)
Total appropriations (1,314.58) (1,323.34)
Retained earnings 9,257.73 8,070.47
Total 17,778.28 15,609.38
Nature and purpose of reserves
Securities premium account: The amount received in excess of face value of the equity shares is recognised in Securities
premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and
nominal value of share is accounted as securities premium. 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.
Capital reserve: Capital reserve is the excess of net assets taken over cost of consideration paid during amalgamation.
Capital redemption reserve: The Company has recognised Capital redemption reserve on redemption of non-convertible
redeemable preference shares from its retained earnings. The amount in Capital redemption reserve is equal to nominal

31 Other Equity (Contd.)

amount of the non-convertible redeemable preference shares redeemed. The Company may issue fully paid up bonus
shares to its members out of the capital redemption reserve.
Debenture redemption reserve:
(1) Pursuant to Section 71 of the Companies Act, 2013 and circular 04/2013, read with notification issued date June 19,
2016 issued by Ministry of Corporate Affairs, the Company is required to transfer 25% of the value of the outstanding
debentures issued through public issue as per the present SEBI (Issue and Listing of Debt Securities) Regulation,
2008 to Debenture redemption reserve (DRR) and no DRR is required in case of privately placed debenture. Also the
Company is required before 30th day of April of each year to deposit or invest, as the case may be, a sum which shall
not be less than 15% of the amount of its debenture issued through public issue maturing within one year from the
Balance sheet date.
(2) As per the notification G.S.R. 574(E) dated August 16, 2019, the Ministry of Corporate Affairs has amended the
Companies (Share Capital & Debentures) Rules, DRR need not be created for debentures issued by a Non-Banking
Finance Company subsequent to the notification date. The Company has not created DRR on public issue of
non-convertible debentures issued after the date of said notification.
(3) In respect of the debentures issued through public issue, the Company has created DRR of Rs. 345.26 crores
(March 31, 2019: Rs. 251.47 crores). The Company subsequent to the year end has deposited a sum of Rs. 15.84
crores (March 31, 2019: Rs. 70.00 crores) in the form of fixed deposits with scheduled banks, representing 15% of the
debenture issued through public issue, which are due for redemption within one year from the balance sheet date.
(4) On redemption of the debentures for which the DRR is created, the amounts no longer necessary to be retained in
this account need to be transferred to the Retained earnings.
General reserve: Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of
net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies
Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.
Statutory reserve: Every year the Company transfers a of sum of not less than twenty per cent of net profit of that year as
disclosed in the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.
The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(1) in The
Reserve Bank of India Act, 1934:
(1) Every non-banking financial company (NBFC) shall create a reserve fund and transfer therein a sum not less than
twenty per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is
declared.
(2) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be
specified by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty-one
days from the date of such withdrawal:
Provided that the RBI may, in any particular case and for sufficient cause being shown, extend the period of
twenty-one days by such further period as it thinks fit or condone any delay in making such report.
(3) Notwithstanding anything contained in sub-section (1), the Central Government may, on the recommendation of
the RBI and having regard to the adequacy of the paid-up capital and reserves of a NBFC in relation to its deposit
liabilities, declare by order in writing that the provisions of sub-section (1) shall not be applicable to the NBFC for
such period as may be specified in the order:
Provided that no such order shall be made unless the amount in the reserve fund under sub-section (1) together with the
amount in the share premium account is not less than the paid-up capital of the NBFC.
Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to statutory
reserve, debenture redemption reserve, general reserve, dividends distributions paid to shareholders and transfer from
debenture redemption reserve.

(Rs. in crores)
On finan- On finan- Total On finan- On finan- Total
cial assets cial assets cial assets cial assets
measured at classified at measured at classified at
amortised fair value amortised fair value
cost through cost through
Particulars profit or loss profit or loss
32 Interest income
Interest on loans 15,690.72 - 15,690.72 14,945.10 - 14,945.10
Interest income from 214.53 1.00 215.53 182.27 0.98 183.25
investments
Interest on deposits with
banks
- Margin money deposit 208.75 - 208.75 159.78 - 159.78
- Deposits with banks 66.95 - 66.95 4.08 - 4.08
Other interest income
- delayed payments by 60.52 - 60.52 33.88 - 33.88
customers
- unwinding of security 3.05 - 3.05 0.46 - 0.46
deposit
- direct assignment 21.94 - 21.94 9.14 - 9.14
Total 16,266.46 1.00 16,267.46 15,334.71 0.98 15,335.69
(Rs. in crores)
33 Fee and commission income
Income from loan related services 73.53 55.30
Income from commission services- life insurance 20.39 23.67
Income from commission services- general insurance 63.58 40.80
Income from commission services- others 37.47 6.83
Total 194.97 126.60
Revenue from contracts with customers

Set out below is the revenue from contracts with customers and reconciliation to statement of profit and loss
(Rs. in crores)
Type of services or service
Fee and commission income 194.97 126.60
Total revenue from contract with customers 194.97 126.60
Geographical markets
India 194.97 126.60
Outside India - -
Timing of revenue recognition
Services transferred at a point in time 194.97 126.60
Services transferred over time - -
Total revenue from contracts with customers 194.97 126.60

33 Fee and commission income (Contd.)
Contract balance
(Rs. in crores)
As at As at
Trade receivables 10.50 8.48
Contract assets - -
The Company does not have any contract assets or liability, hence disclosures related to it has not been presented.
(Rs. in crores)
34 Net gain/ (loss) on fair value changes
(A) Net gain/ (loss) on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments - -
- Derivatives - -
- Others - -
(ii) On financial instruments designated at fair value through profit or loss - -
(B) Others:
- Investment in shares, venture capital fund and mutual funds (0.87) 0.52
- Derivatives (5.88) (3.10)
Total Net gain/(loss) on fair value changes (C ) (6.75) (2.58)
Fair value changes:

- Realised - -
- Unrealised (6.75) (2.58)
Total Net gain/(loss) on fair value changes(D) (6.75) (2.58)
(Rs. in crores)
35 Other operating income
Bad debt recovery 80.73 24.17
Short term capital gain on sale of mutual funds and certificate of deposits 18.79 37.48
Total 99.52 61.65
(Rs. in crores)
36 Other income
Interest on income tax refund 5.80 6.66
Profit on sale of assets 1.17 -
Miscellaneous income 13.30 20.85
Total 20.27 27.51

(Rs. in crores)
37 Finance costs
On Financial liabilities measured at amortised cost
Interest on deposits 973.80 841.66
Interest on borrowings (other than debt securities)
- Loans from banks 1,251.44 1,392.08
- Loans from institutions and others 217.98 298.06
- External commercial borrowings 461.83 151.45
- Interest paid on securitisation 1,743.54 1,320.14
Interest on debt securities
- Debentures 1,950.39 2,257.32
- Senior secured notes 214.37 227.55
- External commercial bond 656.82 27.91
- Commercial paper 104.50 445.20
Interest on subordinated liabilities 661.86 549.89
Other interest expense
- Interest on lease liability 33.73 -
Total 8,270.26 7,511.26
(Rs. in crores)
38 Fee and commission expense
Brokerage 9.23 14.78
Professional charges-resource mobilisation 29.29 24.25
Processing charges on loans 1.89 2.20
Professional charges on securitisation 16.47 20.96
Total 56.88 62.19
(Rs. in crores)
39Impairment of financial instruments
On financial instruments measured at amortised cost
Loans (refer note 62) 2,748.87 2,450.51
Investments 42.22 (0.06)
Others
Undrawn commitments 4.39 6.71
Other assets (0.60) (74.90)
Total 2,794.88 2,382.26


39 Impairment of financial instruments (Contd.)
The table below shows the ECL charges on financial instruments for the year recorded in the statement of profit and
loss based on evaluation stage:
Year ended March 31, 2020 (Rs. in crores)
General approach Simplified Total
Stage 1 Stage 2 Stage 3 approach
Particulars collective collective collective
Impairment of financial
39
instruments
Loans and advances to customers 1,088.82 (20.86) 1,680.91 - 2,748.87
Debt instruments measured at amortised cost 23.78 18.44 - - 42.22
Undrawn commitments 4.39 - - - 4.39
Others - - - (0.60) (0.60)
Total impairment loss 1,116.99 (2.42) 1,680.91 (0.60) 2,794.88
Year ended March 31, 2019

(Rs. in crores)
approach
Stage 1 Stage 2 Stage 3
Loans and advances to customers 478.90 381.55 1,590.06 - 2,450.51
Debt instruments measured at amortised cost - - - (0.06) (0.06)
Others - - - (74.90) (74.90)
Total impairment loss 485.61 381.55 1,590.06 (74.96) 2,382.26
(Rs. in crores)
40 Employee benefits expenses
Salaries, other allowance and bonus 926.57 814.24
Contribution to provident and other funds 53.72 46.37
Staff welfare expenses 24.99 17.88
Gratuity expenses 5.54 4.57
Total 1,010.82 883.06
(Rs. in crores)
41 Depreciation, amortisation and impairment
Depreciation of tangible assets 48.62 41.94
Amortisation of intangible assets 1.26 1.03
Lease depreciation 91.17 -
Total 141.05 42.97

(Rs. in crores)
42 Other expenses
Rent 9.88 105.50
Rates and taxes 2.56 11.55
Energy costs 21.08 18.29
Repairs and maintenance 56.76 45.79
Communication costs 49.17 49.05
Printing and stationery 19.33 13.62
Advertisement and publicity 14.27 15.70
Director’s fees, allowances, and expenses 0.66 0.65
Auditor fees and expenses
As Auditor:
- Audit fees 0.88 0.84
- Tax audit fees 0.09 0.09
- Out of pocket 0.04 0.06
In any other manner:
- Certification 0.08 0.04
Legal and professional charges 58.18 45.82
Other expenditure:
Travelling and conveyance 123.22 127.54
Business promotion 47.71 43.72
Outsourcing expenses 75.99 42.17
Royalty 180.75 169.45
Insurance 1.38 2.36
Bank charges 43.18 52.54
Loss on sale of fixed assets (net) - 0.51
Service charges 45.67 43.49
CSR expenses [Refer note 60] 53.16 40.06
Miscellaneous expenses 59.16 65.23
Total 863.32 894.07
43 Income Tax
The components of income tax expense for the year ended March 31, 2020 and March 31, 2019 and are:
(Rs. in crores)
Current tax 921.20 1,346.37
Adjustment in respect of current income tax of prior years 0.84 (109.82)
Deferred tax relating to origination and reversal of temporary differences 14.79 (22.27)
Total tax charge 936.83 1,214.28
Current tax 922.04 1,236.55
Deferred tax 14.79 (22.27)


43 Income Tax (Contd.)
Reconciliation of the total tax charge:

The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been
charged at Indian corporate tax rate. During the year, the Company has exercised the option permitted under section
115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly,
the Company had recognised and remeasured Provision for Income Tax and Deferred Tax based on the rate prescribed
in the said section. Accordingly, total benefit derived by the Company on adoption of new tax rate is Rs. 357.44 crores in
current tax and reversal of Rs. 21.18 crores in deferred tax asset for the year ended March 31, 2020.
A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the year
ended March 31, 2020 and March 31, 2019 is, as follows:
(Rs. in crores)
Accounting profit before tax 3,438.67 3,778.27
At India’s statutory income tax rate of 25.168% (2019: 34.944%) 865.44 1,320.28
Income subject to tax at special rate
Long term capital gain on sale of property (0.07) -
Income not subject to tax
Others - (11.51)
Non-deductible expenses
Corporate social responsibility expenditure not allowable for tax purpose 13.38 0.55
Deduction under chapter VIA of the Income Tax Act, 1961 (section 80G) - 6.37
Reversal of deferred tax no longer required 26.25 -
Reversal of deferred tax asset on account of adoption of new Income Tax rate 21.18 -
Others 9.81 8.41
Income tax expense reported in the statement of profit and loss 936.83 1,214.28
The effective income tax rate for March 31, 2020 is 27.24% (March 31, 2019: 32.14%).
Deferred tax
The following table shows deferred tax recorded in the balance sheet and changes recorded in the income tax expense:
(Rs. in crores)
Deferred tax Deferred tax Income OCI
assets liabilities statement
As at As at Year ended Year ended
Particulars March 31, 2020 March 31, 2020 March 31, 2020 March 31, 2020
Property, plant and equipment, intangible assets and 19.45 - (2.65) -
investment property - carrying amount other than
on account of fair valuation
Provision for post retirement benefits 9.42 - (0.56) (1.59)
Expenses allowable for tax purposes when paid 25.45 - - -
Reversal of deferred tax no longer required - - 26.25 -
EIR impact on debt instrument in the nature of - 14.21 (13.10) -
borrowings measured at amortised cost
Impairment allowance for undrawn commitments 10.05 - (7.09) -
Fair valuation of derivative financial instrument - 1.48 - -
Right-of-use assets 8.80 - (4.78) -
Reversal of deferred tax asset on account of adoption - - 21.18 -
of new Income Tax rate
Other temporary differences 5.02 - (4.45) -
Total 78.19 15.69 14.79 (1.59)

(Rs. in crores)
Property, plant and equipment, intangible assets 23.52 - (3.05) -
and investment property - carrying amount other
than on account of fair valuation
Expenses allowable for tax purposes when paid 35.34 - 1.25 -
EIR impact on debt instrument in the nature of 36.44 - 24.68 -
advances measured at amortised cost
Impairment allowance for undrawn 4.11 - (2.35) -
commitments
Fair valuation of derivative financial instrument - 2.06 (1.08) -
Other temporary differences 6.23 0.02 (3.48) -
Total 115.69 39.99 (22.27) (1.24)
Amounts recognised in respect of current tax / deferred tax directly in equity:

(Rs. in crores)
As at As at
Amounts recognised in respect of current tax / deferred tax directly in equity - -
Tax losses
(Rs. in crores)
As at As at
Unused tax losses for which no deferred tax asset has been recognised - -
44 Earnings per share

Basic earnings per share (EPS) is calculated by dividing the net profit for the year attributable to equity holders of Company
by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit attributable to equity holders of Company (after adjusting for interest
on the convertible preference shares and interest on the convertible bond, in each case, net of tax) by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that would be
issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

Net Profit after tax as per Statement of Profit and Loss (Rs. in crores) (A) 2,501.84 2,563.99
Weighted average number of equity shares for calculating basic EPS (in crores) (B) 22.69 22.69
Weighted average number of equity shares for calculating diluted EPS 22.69 22.69
(in crores) (C)
Basic earnings per equity share (in Rupees) 110.27 113.01
(face value of Rs. 10/- per share) (A) / (B)
Diluted earnings per equity share (in Rupees) 110.27 113.01
(face value of Rs. 10/- per share) (A) / (C)

45 Investment in associates and structured entities

Associate of the Company is:
Name of the associate Country of Principal place Principal activities % equity % equity
incorporation of business interest interest
March March
31, 2020 31, 2019
Shriram Automall India India New Delhi Market leader in physical 44.56% 44.56%
Limited (SAMIL) bidding for acquisition and
disposal of pre-owned vehicles
and equipment.
The Company has recognised its investment in associate under equity method and not adjusted to fair value at the end of
each reporting period.
The Company’s share in the associate is as follows:

(Rs. in crores)
(a) share in profit or loss from continuing operations. 10.43 11.69
(b) share in post-tax profit or loss from discontinued operations. - -
(c) share in other comprehensive income. 0.25 (0.10)
(d) share in total comprehensive income. 10.68 11.59
46 Retirement benefit plan
a) Defined contribution plan

A defined contribution plan is a pension plan under which the Company pays fixed contributions; there is no legal
or constructive obligation to pay further contributions. The assets of the plan are held separately from those of the
Company in a fund under the control of trustees.
The Company makes Provident fund and Employee State Insurance Scheme contributions which are defined
contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company recognised Rs. 41.06 crores (March 31, 2019: Rs.
31.96 crores) for Provident fund contributions and Rs. 12.54 crores (March 31, 2019: Rs. 14.30 crores) for Employee
State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by
the Company are at rates specified in the rules of the schemes.
b) Defined benefit plan
Gratuity
The Company has a defined benefit gratuity plan (funded). The gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level
of benefits provided depends on the member’s length of service and last drawn salary. The fund is managed by third
party fund managers.
Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-
liability matching strategy and investment risk management policy. This includes employing the use of annuities and
longevity swaps to manage the risks. The Board of Trustees decides contribution to be made by the Company based
on the results of this annual review. The trust is in process of investing entire funds in government securities through
third party fund managers and as on March 31, 2020, 82 % funds are invested in government securities and balance
18% funds are invested in other equity and debt instruments. The Board of Trustees aim to keep annual contributions
of the Company relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

46 Retirement benefit plan (Contd.)

The following tables summarises the components of net benefit expense recognised in the statement of profit and loss
and the funded status and amounts recognised in the balance sheet for the gratuity plan.
Amount recognised in the statement of profit and loss in respect of the defined benefit plan are as follows :
(Rs. in crores)
Amounts recognised in statement of profit and loss in respect of defined
benefit plans are as follows :
Current service cost 5.45 4.72
Interest expense 3.78 3.22
Interest Income (3.68) (3.37)
Past service cost - -
Components of defined benefit costs recognised in profit or loss (A) 5.55 4.57
Remeasurement of gains/(losses) in other comprehensive income :
Return on plan assets (excluding amounts included in net interest expense) (1.18) 0.74
Actuarial changes arising from changes in demographic assumptions - -
Actuarial changes arising from changes in financial assumptions 4.80 0.56
Experience adjustments 2.71 2.26
Components of defined benefit costs recognised in other comprehensive 6.33 3.56
income (B)
Total (A+B) 11.88 8.13
Movement in the present value of the defined benefit obligation are as follows :
(Rs. in crores)
As at As at
Change in the obligation during the year ended
Present value of defined obligation at the beginning of the year 49.43 41.30
Expenses recognised in statement of profit and loss :
Interest expense/(income) 3.78 3.22
Recognised in other comprehensive income remeasurement gains/(losses) 7.51 2.83
Liability transferred in/acquisitions - 0.09
Benefits paid from the fund (2.92) (2.73)
Present value of defined obligation at the end of the year 63.25 49.43
Change in the Fair value of plan assets :

(Rs. in crores)
As at As at
Fair value of plan assets at the beginning of the year 48.15 43.23
Interest income 3.68 3.37
Contributions by the employer 9.79 5.02
Return on plan assets excluding interest income 1.18 (0.74)
Fair value of plan assets at the end of the year 59.88 48.15


Calculation of benefit liability/(asset) :
(Rs. in crores)
As at As at
Defined benefit obligation 63.25 49.43
Fair value of plan assets 59.88 48.15
Benefit liability 3.37 1.28
The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below:
(Rs. in crores)
As at As at
Expected return on plan assets 6.56% 7.64%
Rate of discounting 6.56% 7.64%
Expected rate of salary increase 5.00% 5.00%
Rate of employee turnover For service 4 years For service 4 years
and below 20.00% and below 20.00%
p.a. and for service p.a. and for service
5 years and above 5 years and above
7.50% p.a. 7.50% p.a.
Mortality rate during employment Indian Assured Indian Assured
Lives mortality Lives mortality
(2006-08) (2006-08)
Mortality rate after employment N.A. N.A.
Investments quoted in active markets:
(Rs. in crores)
As at As at
Investment funds 59.88 48.15
Total 59.88 48.15

(Rs. in crores)
Impact on defined Impact on defined
benefit obligation benefit obligation
Assumptions Sensitivity level March 31, 2020 March 31, 2019
Discount rate 1% increase (4.47) (3.32)
1% decrease 5.14 3.81
Future salary increases 1% increase 5.10 3.81
1% decrease (4.51) (3.37)
Attrition rate 1% increase 0.49 0.72
1% decrease (0.57) (0.82)

(Rs. in crores)
As at As at
Expected payment for future years March 31, 2020 March 31, 2019
Within the next 12 months (next annual reporting period) 6.35 4.99
Between 2 and 5 years 21.74 18.42
Beyond 10 years 64.26 56.02
Total expected payments 117.97 100.95
The Company expects to contribute Rs. 10.09 crores to the fund in the next financial year.
The weighted average duration of the defined benefit obligation as at March 31, 2020 is 9 years (March 31, 2019: 9 years)
Asset liability matching strategies
The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax
Rules, 1962, this generally reduces ALM risk.
c) Compensated Absences

The principal assumptions used in determining obligations for the Company are shown below:
(Rs. in crores)
As at As at
Rate of employee turnover
Service 4 years and below 20.00% 20.00%
Service 5 years and above 7.50% 7.50%
Indian Assured Indian Assured
Mortality Lives mortality Lives mortality
(2006-08) (2006-08)
(Rs. in crores)
Expenses recognised in statement of profit and loss 17.94 14.52
The Company has not funded its compensated absences liability and the same continues to remain as unfunded as at
March 31, 2020.
The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
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.

47 Maturity analysis of assets and liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or
settled.
(Rs. in crores)
Within 12 After 12 Total Within 12 After 12 Total
Particulars months months months months
Assets
Financial assets
Cash and cash equivalents 3,088.99 - 3,088.99 1,029.14 - 1,029.14
Bank balance other than above 4,204.15 21.78 4,225.93 2,233.05 719.28 2,952.33
Derivative financial instruments 758.73 - 758.73 21.72 - 21.72
Receivables
(I) Trade receivables 10.50 - 10.50 8.48 - 8.48
(II) Other receivables 5.64 - 5.64 19.94 - 19.94
Loans 28,287.31 73,944.32 102,231.63 36,655.28 60,096.21 96,751.49
Investments 361.47 2,437.01 2,798.48 2,011.10 1,987.97 3,999.07
Other financial assets - 45.15 45.15 - 36.88 36.88
Non-financial Assets
Current tax asset - 249.10 249.10 - 106.58 106.58
Deferred tax assets (net) - 62.50 62.50 - 75.70 75.70
Investment property - 2.03 2.03 - 2.06 2.06
Property, plant and equipment - 149.88 149.88 - 143.46 143.46
Right-of-use assets - 327.84 327.84 - - -
Other intangible assets - 2.67 2.67 - 1.97 1.97
Other non-financial assets 44.10 125.47 169.57 62.00 81.66 143.66
Total assets 36,760.89 77,367.75 114,128.64 42,040.71 63,251.77 105,292.48
Liabilities
Financial Liabilities
Derivative financial liabilities - - - 83.42 - 83.42
Payables
(I) Trade payables
(i) total outstanding dues of micro 0.40 - 0.40 - - -
enterprises and small enterprises
(ii) total outstanding dues of creditors 143.44 - 143.44 133.46 - 133.46
other than micro enterprises and
small enterprises
(II) Other payables
(i) total outstanding dues of micro - - - - - -
small enterprises
Debt securities 6,484.83 27,782.13 34,266.96 13,044.83 21,136.93 34,181.76
Borrowings (other than debt securities) 16,550.38 25,924.22 42,474.60 17,820.26 19,369.04 37,189.30
Deposits 2,857.28 9,102.84 11,960.12 2,479.79 7,861.67 10,341.46
Subordinated liabilities 1,114.07 4,556.00 5,670.07 670.20 5,531.68 6,201.88
Other financial liabilities 787.82 124.50 912.32 1,001.43 15.05 1,016.48
Lease liabilities 80.97 281.84 362.81 - - -
Non-financial Liabilities
Current tax liabilities (net) 102.02 - 102.02 102.97 - 102.97
Provisions 112.27 34.06 146.33 107.57 25.69 133.26
Other non-financial liabilities 83.28 - 83.28 - 69.49 69.49
Total Liabilities 28,317.89 67,805.59 96,123.48 35,446.65 54,009.55 89,456.20
Net 8,443.00 9,562.16 18,005.16 6,594.06 9,242.22 15,836.28

48 Change in liabilities arising from financing activities
(Rs. in crores)
As at Cash flows Changes in Exchange Other As at
Particulars March 31, 2019 fair value difference March 31, 2020
Debt securities 34,181.76 (831.77) - - 916.97 34,266.96
Borrowings (other than debt
37,189.30 5,139.66 - - 145.64 42,474.60
securities)
Deposits 10,341.46 1,619.31 - - (0.65) 11,960.12
Subordinated liabilities 6,201.88 (573.50) - - 41.69 5,670.07
Lease liabilities - 110.46 - - 252.35 362.81
Total liabilities from 87,914.40 5,464.16 - - 1,356.00 94,734.56
financing activities
(Rs. in crores)
Debt securities 32,432.62 1,984.43 - - (235.29) 34,181.76
36,108.54 402.56 - - 678.20 37,189.30
securities)
Deposits 8,597.75 1,733.21 - - 10.50 10,341.46
Subordinated liabilities 4,991.94 1,431.63 - - (221.69) 6,201.88
Total liabilities from 82,130.85 5,551.83 - - 231.72 87,914.40
49 Contingent liabilities, commitments and leasing arrangements

(A) Contingent Liabilities
(Rs. in crores)
As at As at
a. In respect of Income tax demands where the Company has filed appeal 133.64 78.70
before various authorities
b. VAT demand where the Company has filed appeal before various 117.21 124.30
appellates
c. Service tax demands where the Company has filed appeal before various 325.99 198.31
authorities
d. Penalty levied for Contravention of provisions of Section 6(3)(b) of 5.00 -
FEMA, 1999 read with Regulation 4 of Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident outside India)
Regulations, 2000
Total 581.84 401.31
Future cash outflows in respect of above are determinable only on receipt of judgements /decisions pending
with various forums/authorities. 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 respective proceedings. The Company does not expect any
reimbursement in respect of the above contingent liabilities. The Company is of the opinion that above demands are
not sustainable and expects to succeed in its appeals. The management believes that the ultimate outcome of these
proceedings will not have a material adverse effect on the Company’s financial position and results of operations.
Disputed income tax demands are on account of royalty, disallowance of ESOP expenses, 14A, derivatives etc.

49 Contingent liabilities, commitments and leasing arrangements (Contd.)
(B) Commitments not provided for

(Rs. in crores)
As at As at
a. Estimated amount of contracts remaining to be executed on capital 4.15 5.55
account, net of advances
b. Commitments related to loans sanctioned but undrawn 311.87 471.92
(C) Lease arrangements
As a lessee
Lease :
Future minimum lease payments under non-cancellable leases as at March 31, 2019 are as follows:
(Rs. in crores)
As at
Within one year 30.95
After one year but not more than five years 95.17
More than five years 29.99
Total 156.11
Effective April 01, 2019, the Company adopted Ind AS 116 “Leases” and applied the same to the lease contracts
existing on April 01, 2019 using the modified retrospective approach, recognising right-of-use assets and adjusted
lease liability. As per Ind AS 116, lease commitments are recognised as lease liability and need not be disclosed under
contingent liabilities and commitments.

50 Related party DISCLOSURES
Relationship Name of the party
I Promoter : Shriram Capital Limited
II Promoter group : Shriram Ownership Trust

Shriram Financial Ventures (Chennai) Private Limited
Shriram Value Services Limited
Novac Technology Solutions (P) Limited
Shriram Fortune Solutions Limited
Shriram General Insurance Company Limited
Shriram Insight Share Brokers Limited
Shriram Life Insurance Company Limited
Shriram Asset Management Company Limited
Shriram Financial Products Solutions (Chennai) Private Limited
Insight Commodities and Futures Private Limited
Shriram Credit Company Limited
Shriram Overseas Investments Private Limited
Shriram Wealth Advisors Limited
Bharath Investments Pte. Ltd., Singapore
SGI Philippines General Insurance Co. Inc.
Novac Digital Service Private Limited (from May 20, 2019)
III Associates Shriram Automall India Limited (SAMIL)

Cartradeexchange Solutions Private Limited
Adroit Inspection Service Private Limited
Augeo Asset Management Private Limited (w.e.f. January 08, 2020)
IV Key Management Personnel : Mr. Umesh Revankar, Managing Director & CEO
Mr. Amitabh Chaudhry (upto October 25, 2018)
Mr. S. Lakshminarayanan
Mrs. Kishori Udeshi
Mr. S. Sridhar
Mr. Sumatiprasad M Bafna (upto March 31, 2019)
Mr. Pradeep Kumar Panja (from October 25, 2018)
Mr. D. V. Ravi
Mr. Puneet Bhatia
Mr. Ignatius Michael Viljoen (from May 14, 2019)
Mr. Gerrit Lodewyk Van Heerde (upto May 08, 2019)
V Relatives of Key Management Personnel : Mrs. Suchita U. Revankar (spouse of Managing Director & CEO)
Mr. Shreyas U. Revankar (son of Managing Director & CEO)
Mrs. Geeta G. Revankar (mother of Managing Director & CEO)
Mr. Anil G. Revankar (brother of Managing Director & CEO)
Mr. Shirish U. Revankar (son of Managing Director & CEO)
VI Employees’ benefit plan Shriram Transport Finance Co. Ltd. Employees Group Gratuity Assurance
Scheme

50 Related party DISCLOSURES (Contd.)
162
Summary of related party transactions
(Rs. in Crores)
Promoter Promoter group Associates Employees’ benefit plan Key management Relative of key Total
personnel management personnel
March March March March March March March March March March March March March March
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Payments/Expenses
Payment to key management - - - - - - - - 1.76 1.26 - - 1.76 1.26
personnel
Royalty - - 169.69 155.46 - - - - - - - - 169.69 155.46
Service charges 41.90 39.90 - - - - - - - - - - 41.90 39.90
I.T & BPO charges - - 68.88 38.00 - - - - - - - - 68.88 38.00

Rent 0.78 - 0.02 0.02 7.04 4.44 - - - - - - 7.84 4.46
Business mobilisation expenses - - - - 0.04 1.47 - - - - - - 0.04 1.47
Other administrative expenses 0.04 - - - 11.11 0.82 - - - - - - 11.15 0.82
Insurance premium - - 8.91 7.60 - - - - - - - - 8.91 7.60
Commission - - 34.97 41.74 - - - - - - - - 34.97 41.74
Sales promotion - - 1.92 1.61 - - - - - - - - 1.92 1.61
Valuation charges - - - - 0.09 - - - - - - - 0.09 -
Interest 0.26 0.38 53.74 52.66 2.97 2.36 - - 0.33 0.17 0.01 0.01 57.32 55.59
Equity dividend 71.17 65.09 - - - - - - - - 0.00 0.00 71.17 65.09
Non-convertible debenture matured - - 80.11 1.60 - - - - - - - 0.01 80.11 1.61
Fixed deposit matured - - 14.00 - - - - - - - 0.01 0.03 14.01 0.03
Subordinated debt matured 1.72 0.54 45.00 7.07 1.39 1.15 - - - - - 0.01 48.11 8.77
Unsecured loan and advances - - - - - 7.86 - - - - - - - 7.86
Employer contribution to employees - - - - - - 9.79 5.01 - - - - 9.79 5.01
group gratuity assurance scheme
Inter corporate deposit repaid 74.00 - - - 51.50 28.35 - - - - - - 125.50 28.35
Receipts/Income
Common sharing expenses 0.01 0.01 1.17 1.16 0.65 0.52 - - - - - - 1.83 1.70
Rent & electricity 0.15 0.18 - - 4.64 4.14 - - - - - - 4.79 4.32
Other administrative expenses - - - - 0.14 2.55 - - - - - - 0.14 2.55
Commission - - 79.11 61.08 - - - - - - - - 79.11 61.08
Sale of Trade mark - Shriram - - - - - 0.06 - - - - - - - 0.06
Automall India Limited
Subordinated debt - - - 25.00 - - - - - - - - - 25.00
Non-convertible debenture - - 2.86 11.74 - - - - 0.10 2.00 - - 2.96 13.74
Fixed deposit - - 1.50 14.00 - - - - - 0.50 0.05 0.03 1.55 14.53

Unsecured loan and advances repaid - - - - 14.44 7.41 - - - - - - 14.44 7.41
Inter corporate deposit received 74.00 - - - 63.40 25.95 - - - - - - 137.40 25.95
Balance outstanding at the year end
Share capital 59.55 59.17 - - - - - - - - 0.00 0.00 59.56 59.17
Investment in equity shares - - - - 13.37 13.37 - - - - - - 13.37 13.37
receivable
Unsecured loan and advances payable - - - - 0.41 - - - - - - - 0.41 -
Rent receivable - 0.01 - 0.02 - - - - - - - - - 0.03
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Commission receivable - - 9.56 7.65 - - - - - - - - 9.56 7.65
Commission payable - - - 2.62 - - - - - - - - - 2.62
Prepaid for insurance premium - - 2.84 2.15 - - - - - - - - 2.84 2.15
Outstanding expenses 10.43 10.78 44.13 43.01 - - - - - - - - 54.55 53.78
Fixed deposit - - 1.55 14.99 - - - - 1.45 1.34 0.13 0.08 3.13 16.41
Subordinated debt 0.41 3.14 422.19 470.39 2.76 2.79 - - - - - - 425.37 476.32
Non-convertible debenture - - 15.12 95.01 22.77 - - - 2.61 2.30 - - 40.50 97.30
Expenses recoverable - 0.00 - 0.21 - - - - - - - - - 0.21
Inter corporate deposit - - - - 39.42 26.38 - - - - - - 39.42 26.38
Income /expenses are presented excluding GST
Breakup of related party transactions

(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Payments/Expenses
Employee benefits for key
management personnel
- Short term benefits - - - - - - - - 0.97 0.53 - - 0.97 0.53

- Post employment benefits - - - - - - - - 0.19 0.14 - - 0.19 0.14
Commission & sitting fee paid to
directors
- Mr. Amitabh Chaudhry - - - - - - - - 0.04 0.10 - - 0.04 0.10
- Mr. S. Lakshminarayanan - - - - - - - - 0.12 0.12 - - 0.12 0.12
- Mrs. Kishori Udeshi - - - - - - - - 0.14 0.12 - - 0.14 0.12
- Mr. S. Sridhar - - - - - - - - 0.10 0.12 - - 0.10 0.12
- Mr. Sumatiprasad M. Bafna - - - - - - - - 0.09 0.11 - - 0.09 0.11
- Mr. Pradeep Kumar Panja - - - - - - - - 0.11 0.02 - - 0.11 0.02
License Fees
- Shriram Ownership Trust - - 82.81 155.46 - - - - - - - - 82.81 155.46
- Shriram Value Services Limited - - 86.87 - - - - - - - - - 86.87 -
Service charges to Shriram Capital 41.90 39.90 - - - - - - - - - - 41.90 39.90
Limited
Voice Call services

- Shriram Value Services Limited - - 21.26 38.00 - - - - - - - - 21.26 38.00
163
Standalone Accounts
164
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Novac Technology Solutions - - 7.43 - - - - - - - - - 7.43 -
(P) Ltd.
I.T & BPO charges to Novac - - 40.18 - - - - - - - - - 40.18 -
Technology Solutions (P) Ltd.
Rent
- Shriram Automall India Limited - - - - 7.04 4.44 - - - - - - 7.04 4.44
- Shriram Capital Limited 0.78 - - - - - - - - - - - 0.78 -

- Shriram Asset Management - - 0.02 0.02 - - - - - - - - 0.02 0.02
Company Limited
Business mobilisation expenses - - - - - 0.04 1.47 - - - - - - 0.04 1.47
Shriram Automall India Limited
Other administrative expenses
Insurance premium
- Shriram Life Insurance Company - - 5.63 5.30 - - - - - - - - 5.63 5.30
Limited
- Shriram General Insurance - - 3.28 2.30 - - - - - - - - 3.28 2.30
Company Limited
Commission
- Shriram Fortune Solutions Limited - - 26.03 33.92 - - - - - - - - 26.03 33.92
- Shriram Financial Products - - 3.31 2.29 - - - - - - - - 3.31 2.29
Solutions (Chennai) Private Limited
- Shriram Insight Share Brokers - - 5.63 5.53 - - - - - - - - 5.63 5.53

Limited
Sales promotion
Limited
Interest on Inter corporate Deposit

Valuation charges paid to - Adroit - - - - 0.09 - - - - - - - 0.09 -
Inspection Service Private Limited
Interest on fixed deposit
- Key management personnel - - - - - - - - 0.11 0.09 - - 0.11 0.09
- Relative of key management - - - - - - - - - - 0.01 0.01 0.01 0.01
personnel
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Shriram Asset management - - 0.05 - - - - - - - - - 0.05 -
Company Limited
Interest on subordinated debt
- Relative of key management - - - - - - - - - - - 0.00 - 0.00
personnel
- Shriram Capital Limited 0.09 0.38 - - - - - - - - - - 0.09 0.38
- Shriram Asset Management - - - 0.70 - - - - - - - - - 0.70
Company Limited
Limited
Company Limited
Interest on non-convertible
debenture
- Key management personnel
- Mr.Umesh Revankar - - - - - - - - 0.20 0.08 - - 0.20 0.08
- Mr. S. Sridhar - - - - - - - - 0.01 0.00 - - 0.01 0.00
personnel

Limited
Company Limited
Company Limited
Limited
- Shriram Automall India Limited - - - - 0.19 - - - - - - - 0.19 -
Equity dividend
personnel
Non-convertible debenture
matured
personnel

Limited
- Shriram General Insurance - - 21.10 - - - - - - - - - 21.10 -
Company Limited
165
Standalone Accounts
166
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Shriram Insight Share Brokers - - 0.11 - - - - - - - - - 0.11 -
Limited
Fixed deposit matured
- Key management personnel - - - - - - - - - - - - - -
personnel
- Shriram Fortune Solutions Limited - - 14.00 - - - - - - - - - 14.00 -

Subordinated debt matured
-Relative of key management - - - - - - - - - - - 0.01 - 0.01
personnel
Company Limited
Company Limited
received - Shriram Automall India
Limited
Inter corporate deposit repaid
TOTAL 189.87 105.91 477.24 305.76 74.15 46.46 9.79 5.01 2.10 1.43 0.02 0.06 753.17 464.63
Receipts/Income
Recovery of common sharing
expenses
Company Limited

Limited
- Adroit Inspection Service Private - - - - 0.07 0.00 - - - - - - 0.07 0.00
Limited
Rent & electricity
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Commission
Company Limited
Limited
Subordinated debt
- Shriram Life Insurance Company - - - 25.00 - - - - - - - - - 25.00
Limited
- Mr. Umesh Revankar - - - - - - - - - 2.00 - - - 2.00

- Mr. Pradeep Kumar Panja - - - - - - - - 0.10 - - - 0.10 -
Company Limited
Limited
Fixed deposit
- Key management personnel - - - - - - - - - 0.50 - - - 0.50

personnel
- Shriram Fortune Solutions Limited - - - 14.00 - - - - - - - - - 14.00
- Shriram Asset Management - - 1.50 - - - - - - - - - 1.50 -
Company Limited
Unsecured loan and advances
repaid by
Inter corporate deposit
TOTAL 74.16 0.19 84.63 112.98 83.28 40.63 - - 0.10 2.50 0.05 0.03 242.22 156.34


167
Standalone Accounts
168
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Share capital
personnel
- Shriram Financial Ventures - - 0.05 - - - - - - - - - 0.05 -

(Chennai) Private Limited
Investment in equity shares
receivable
- Shriram Automall India Limited - - - - - 0.58 - - - - - - - 0.58
payable
Rent receivable
- Shriram Capital Limited - 0.01 - - - - - - - - - - - 0.01
Company Limited
Commission receivable
Company Limited
Limited
Commission payable
- Shriram Financial Products - - - 0.05 - - - - - - - - - 0.05
- Shriram Insight Share Brokers - - - 0.16 - - - - - - - - - 0.16
Limited
Prepaid for insurance premium
Company Limited

Limited
Outstanding expenses
- Shriram Ownership Trust - - - 41.83 - - - - - - - - - 41.83
- Novac Technology Solutions (P) - - 1.80 - - - - - - - - - 1.80 -
Limited
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Shriram Financial Products - - 0.31 - - - - - - - - - 0.31 -
Limited
Company Limited
Fixed deposit
personnel
Company Limited

- Mr. S. Sridhar - - - - - - - - 0.12 0.11 - - 0.12 0.11
Limited
- Shriram General Insurance - - - 21.67 - - - - - - - - - 21.67
Company Limited
Company Limited
Limited
Subordinated debt
Limited
Company Limited
Expenses recoverable
Limited
Inter corporate deposit received from - - - - 39.42 26.38 - - - - - - 39.42 26.38

169
Standalone Accounts
51 Capital management
The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued
equity capital, share premium and all other equity reserves attributable to equity holders of the Company.
As an NBFC, the RBI requires us to maintain a minimum capital to risk weighted assets ratio (“CRAR”) consisting of Tier I
and Tier II capital of 15% of our aggregate risk weighted assets. Further, the total of our Tier II capital cannot exceed 100%
of our Tier I capital at any point of time. The capital management process of the Company ensures to maintain a healthy
CRAR at all the times. Refer note 69 for the Company’s Capital ratios.
The primary objectives of the Company’s capital management policy are to ensure that the Company complies with
externally imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support
its business and to maximise shareholder value.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions
and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes
have been made to the objectives, policies and processes from the previous years except those incorporated on account
of regulatory amendments. However, they are under constant review by the Board. The Company has complied with the
notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 “Implementation of Indian Accounting
Standards.
52 Fair value measurement

52.01 Valuation principle
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair
values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained in
Note 6.1 (xiii).
52.02 Fair value hierarchy of assets and liabilities

The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:
(Rs. in crores)
Assets measured at fair value on a Level-1 Level-2 Level-3 Total
recurring basis
Derivative financial instruments
Forward contracts - 378.05 - 378.05
Currency swaps - 11.50 - 11.50
Interest rate swaps - 45.77 - 45.77
Cross currency interest rate swaps - 319.50 - 319.50
Interest rate caps - 3.91 - 3.91
Total derivative financial instruments - 758.73 - 758.73
Financial assets held for trading
Mutual funds - 3.02 - 3.02
Equity instruments - - 3.36 3.36
Venture capital fund - 1.04 - 1.04
Total financial assets held for trading - 4.06 3.36 7.42
Total assets measured at fair value on - 762.79 3.36 766.15
a recurring basis
Assets measured at fair value on a
non-recurring basis
Non-current assets and disposals held - - - -
for sale
Total assets measured at fair value on - - - -
a non-recurring basis
Total assets measured at fair value - 762.79 3.36 766.15

52 Fair value measurement (Contd.)
(Rs. in crores)
Liabilities measured at fair value on Level-1 Level-2 Level-3 Total
a recurring basis
Total financial liabilities measured at - - - -
fair value on a recurring basis
Liabilities measured at fair value on a
non-recurring basis
Non-current liabilities and disposals - - - -
held for sale
fair value on a non-recurring basis
Total liabilities measured at fair value - - - -
(Rs. in crores)
recurring basis
Mutual funds - 323.82 - 323.82
Certificate of deposits - 1,231.71 - 1,231.71
Total financial assets held for trading - 1,556.50 3.58 1,560.08
Total assets measured at fair value on - 1,578.22 3.58 1,581.80
a recurring basis
non-recurring basis
for sale
Total assets measured at fair value - 1,578.22 3.58 1,581.80
(Rs. in crores)
Liabilities measured at fair value on a Level-1 Level-2 Level-3 Total
recurring basis
Total financial liabilities measured at - 83.42 - 83.42

(Rs. in crores)
non-recurring basis
held for sale
Total liabilities measured at fair value - 83.42 - 83.42
52.03: Valuation techniques
Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived
at as under:
Equity instruments
Investment in units of mutual funds are measured based on their published net asset value (NAV), taking into account
redemption and/or other restrictions. Such instruments are generally Level 2. Equity instruments in non-listed entities are
initially recognised at transaction price and re-measured (to the extent information is available) and valued on a case-by-
case and classified as Level 3.
Derivative Financial Instruments
Foreign exchange contracts include foreign exchange forward and swap contracts, interest rate swaps and over- the-
counter foreign exchange options. These instruments are valued by either observable foreign exchange rates, observable
or calculated forward points and option valuation models. With the exception of contracts where a directly observable
rate is available which are disclosed as Level 1, the Company classifies derivative financial instruments as Level 2 financial
instruments when no unobservable inputs are used for their valuation or the unobservable inputs used are not significant
to the measurement (as a whole).
Certificate of deposits (CDs)
Certificate of Deposits are short-term financial instruments issued by Banks. Financial Benchmark India Private Ltd (FBIL)
has developed the FBIL- CD, a new benchmark for the money market based on traded CDs reported on the FIMMDA
Trade Reporting and Confirmation System (FTRAC) platform of The Clearing Corporation of India Ltd (CCIL). FBIL-CD
is announced for seven tenors of 14 days, 1 month, 2 months, 3 months, 6 months, 9 months and 12 months. For valuation,
the Company uses FBIL-CD benchmark and based on that benchmark the Company interpolates and calculates CD prices
corresponding to their residual maturities and such instruments are classified as Level 2.
52.05: Transfer between fair value hierarchy levels
During the year there were no transfers between level 1 and level 2. Similarly, there were no transfers from or transfer to
level 3.
52.06: Movements in Level 3 financial instruments measured at fair value
The following tables show a reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
which are recorded at fair value. Transfers from Level 3 to Level 2 occur when the market for some securities became more
liquid, which eliminates the need for the previously required significant unobservable valuation inputs. Since the transfer,
these instruments have been valued using valuation models incorporating observable market inputs. Transfers into Level 3
reflect changes in market conditions as a result of which instruments become less liquid. Therefore, the Company requires
significant unobservable inputs to calculate their fair value.

The following tables show the reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
measured at fair value:
(Rs. in crores)
Equity instruments
As at As at
Opening balance 3.58 0.86
Purchase - -
Sales - -
Issuances - -
Settlements - -
Transfers into level 3 - -
Transfers from level 3 - -
Net interest income, net trading income and other income - -
Other comprehensive income - -
Unrealised gains and losses related to balances held at the end of the year (0.22) 2.72
52.07: Impact of changes to key assumptions on fair value of level 3 financial instruments measured at fair value
The table summarises the valuation techniques together with the significant unobservable inputs used to calculate the fair
value of the Company’s level 3 assets and liabilities. The range of values indicates the highest and lowest level input used in
the valuation technique and, as such, only reflects the characteristics of the instruments as opposed to the level of uncertainty
to their valuation. Relationships between unobservable inputs have not been incorporated in this summary.
(Rs. in crores)
Particulars Fair value Valuation Significant
Level 3 assets Level 3 assets technique unobservable inputs
Equity instruments 3.36 3.58 Based on the Based on the
discounted cashflow discounted cashflow
52.08: Sensitivity of fair value measurements to changes in unobservable market data
The table below describes the effect of changing the significant unobservable inputs to reasonable possible alternatives. All
changes would be reflected in the Statement of profit and loss. Sensitivity data are calculated using a number of techniques,
including analysing price dispersion of different price sources, adjusting model inputs to reasonable changes within the
fair value methodology.
The ranges are not comparable or symmetrical as the model inputs are usually not in the middle of the favourable/
unfavourable range.
The table below shows data in relation to level 3 inputs that are already aggregated on the underlying product levels
without assuming any potential diversification effect, but including potential off-sets from economic or accounting hedge
relationships in place. The Company is of the opinion that, whilst there may be some diversification benefits, incorporating
these would not be significant to the analysis.
(Rs. in crores)
Particulars As at March 31, 2020 As at March 31, 2019
Favourable Unfavourable Favourable Unfavourable
changes 5% changes 5% changes 5% changes 5%
increase decrease increase decrease
Equity instruments based on the 3.51 3.18 3.74 3.38
discounted cashflow

52.09: 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 financial statements. This table does not include the fair values of non–financial assets
and non-financial liabilities.
(Rs. in crores)
Fair value
Carrying Level-1 Level-2 Level-3 Total
As at March 31, 2020 amount
Financial assets:
Cash and cash equivalents 1,864.78 1,864.78 - - 1,864.78
Bank balance other than cash and 5,450.14 - 5,395.64 - 5,395.64
cash equivalents
Trade receivables 10.50 - - 10.50 10.50
Other receivables 5.64 - - 5.64 5.64
Loans 108,501.71 - - 103,070.32 103,070.32
Investments at amortised cost 2,819.92 1,912.92 - 979.04 2,891.96
Other investments 13.37 - - 13.37 13.37
Other financial assets 45.15 - - 40.20 40.20
Total financial assets 118,711.21 3,777.70 5,395.64 104,119.07 113,292.41
Financial liabilities:
Trade payables 143.84 - - 143.84 143.84
Other payables 1.13 - - 1.13 1.13
Debt securities 34,266.96 - 36,510.59 - 36,510.59
Borrowings (other than debt 42,474.60 - 42,704.86 - 42,704.86
securities)
Deposits 11,960.12 - - 12,161.38 12,161.38
Subordinated liabilities 5,670.07 - 5,367.03 722.40 6,089.44
Other financial liabilities 912.32 - - 912.32 912.32
Lease liabilities 362.81 - - 362.81 362.81
Total financial liabilities 95,791.85 - 84,582.49 14,303.88 98,886.37
Off balance sheet items
Other commitments 311.87 - - 311.87 311.87
Total off-balance sheet items 311.87 - - 311.87 311.87
(Rs. in crores)
Fair value
Financial assets:
Cash and cash equivalents 914.01 914.01 - - 914.01
cash equivalents
Loans 102,307.49 - - 101,248.55 101,248.55
Trade payables 133.46 - - 133.46 133.46
Other payables 2.72 - - 2.72 2.72
Debt securities 34,181.76 - 29,030.64 - 29,030.64

(Rs. in crores)
Fair value
securities)
Deposits 10,341.46 - - 9,968.68 9,968.68
Subordinated liabilities 6,201.88 - 5,492.76 1,249.58 6,742.34
Other financial liabilities 1,016.48 - - 1,016.48 1,016.48

Note:
The management assessed that cash and cash equivalents, trade receivables, trade payables, other receivables, other
payables, bank overdrafts and other financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.
52.10: Valuation methodologies of financial instruments not measured at fair value
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for
disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables.
Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts,
which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and bank
balances, Trade receivables, other receivables, balances other than cash and cash equivalents and trade payables without
a specific maturity. Such amounts have been classified as Level 2 on the basis that no adjustments have been made to the
balances in the balance sheet.
Loans and advances to customers
The fair values of loans and receivables are estimated by discounted cash flow models based on contractual cash flows using
actual yields..
Pass through certificates
These instruments include asset backed securities. The market for these securities is not active. Therefore, the Company
uses a variety of valuation techniques to measure their fair values. Expected cash flow levels are estimated by using
quantitative and qualitative measures regarding the characteristics of the underlying assets including prepayment rates,
default rates and other economic drivers such as loan-to-value ratios, emergence period estimation, indebtedness and
rental income levels. Instruments with no comparable instruments or valuation inputs are classified as Level 3.
Investment in associate at cost
Investment in associate: As per Ind AS 28 Interest in associate are recognised at cost and not adjusted to fair value at the
end of each reporting period. Cost represents amount paid for acquisition of the said investments. Loan and other similar
arrangements with subsidiaries which are probable to be settled for a fixed number of equity share of the borrower for a
fixed price are classified as equity investment. The Company assesses at the end of each reporting period, if there are any
indications that the said investments may be impaired. If so, the Company estimates the recoverable value/amount of the
investment and provides for impairment, if any i.e. the deficit in the recoverable value over cost.
Investment in government securities at amortised cost
The fair values financial assets held-to-maturity investments are estimated using a discounted cash flow model based on
contractual cash flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit risk.
Issued debt and borrowings
The fair value of issued debt is estimated by a discounted cash flow model incorporating the Company’s own credit risk.
The Company estimates and builds its own credit spread from market-observable data such as secondary prices for its
traded debt and the credit spread on credit default swaps and traded debt of itself.

Off-balance sheet positions

Estimated fair values of off-balance sheet positions are based on discounted cash flow models, as explained above, which
incorporate the credit risk element through the discount factor.
53 Risk Management
Whilst risk is inherent in the Company’s activities, it is managed through an integrated risk management framework
including ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process
of risk management is critical to the Company’s continuing profitability and each individual within the Company is
accountable for the risk exposures relating to his or her responsibilities. The Company is exposed to credit risk, liquidity
risk and market risk. It is also subject to various operating and business risks.
53.01: Introduction and risk profile
53.01.01: Risk management structure
The Board of Directors are responsible for the overall risk management approach and for approving the risk management
strategies and principles.
The Board has constituted the Risk Management Committee which is responsible for monitoring the overall risk process
within the Company.
The Risk Management Committee has the overall responsibility for the development of the risk strategy and implementing
principles, frameworks, policies and limits. The Risk Management Committee is responsible for managing risk decisions
and monitoring risk levels.
The Chief Risk officer is responsible for implementing and maintaining risk related procedures to ensure an independent
control process is maintained. The Risk owners within each department will report to the Risk Committee.
The Risk owners are responsible for monitoring compliance with risk principles, policies and limits across the Company.
Each department has its Risk owner who is responsible for the control of risks, including monitoring the actual risk of
exposures against authorised limits and the assessment of risks.
The Company’s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also
primarily responsible for the funding and liquidity risks of the Company.
The Company’s policy is that risk management processes throughout the Company are audited annually by the Internal
Audit function, which examines both the adequacy of the procedures and the Company’s compliance with the procedures.
Internal Audit discusses the results of all assessments with management, and reports its findings and recommendations to
Risk Management Committee.
53.01.02: Risk mitigation and risk culture
As part of its overall risk management, the Company can use derivatives and other instruments to manage exposures
resulting from changes in interest rates and foreign currencies associated with foreign currency transactions.
53.01.03: Risk measurement and reporting systems
The Company’s risks are measured using a method that reflects both the expected loss likely to arise in normal circumstances
and unexpected losses, which are an estimate of the ultimate actual loss. The models make use of probabilities derived from
historical experience, adjusted to reflect the economic environment, as necessary.
The Company’s policy is to measure and monitor the overall risk-bearing capacity in relation to the aggregate risk exposure
across all risk types and activities.
Information compiled from all the departments is examined and processed in order to analyse, control and identify risks
on a timely basis. This information is presented and explained to the Risk Management Committee and the head of each
department.
The Risk Management Committee receives a comprehensive risk report once a quarter which is designed to provide all the
necessary information to assess and conclude on the risks of the Company.
It is the Company’s policy to ensure that a robust risk awareness is embedded in its organisational risk culture. Employees
are expected to take ownership and be accountable for the risks the Company is exposed to that they decide to take on.
The Company’s continuous training and development emphasises that employees are made aware of the Company’s risk
appetite and they are supported in their roles and responsibilities to monitor and keep their exposure to risk within the
Company’s risk appetite limits. Compliance breaches and internal audit findings are important elements of employees’
annual ratings and remuneration reviews.
53.01.04: Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions.
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to

53 Risk Management (Contd.)
focus on spreading its lending portfolio across all the states with a cap on maximum limit of exposure for a state and also
for an individual/Group.
53.02: Credit risk
Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their
contractual obligations. The Company manages and controls credit risk by setting limits on the amount of risk it is willing
to accept for individual counterparties and for geographical concentrations, and by monitoring exposures in relation to
such limits.
Credit risk is monitored by the credit department of the Company. It is their responsibility to review and manage credit
risk, including environmental and social risk for all types of counterparties. Credit risk consists of line credit managers
who are responsible for their business lines and manage specific portfolios and experts who support both the line credit
manager, as well as the business with tools like credit risk systems, policies, models and reporting.
The Company has established a credit quality review process to provide early identification of possible changes in the
creditworthiness of counterparties.
The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it
is exposed and take corrective actions.
The Company’s internal credit rating grades on days past due(dpd) basis:
Internal rating grade Internal rating description
Performing
High grade 0 dpd
Standard grade 1 to 30 dpd
Sub-standard grade 31 to 60 dpd
Past due but not impaired 61 to 90 dpd
Non-performing 90+ dpd
53.02.01: Derivative financial instruments
Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as
recorded on the balance sheet.
With gross–settled derivatives, the Company is also exposed to a settlement risk, being the risk that the Company honours
its obligation, but the counterparty fails to deliver the counter value.
53.02.02: Impairment assessment
The references below show where the Company’s impairment assessment and measurement approach is set out in this
report. It should be read in conjunction with the Summary of significant accounting policies.
The Company’s definition and assessment of default (Note 53.02.02.01).
- How the Company defines, calculates and monitors the probability of default, exposure at default and loss given
default (Notes 53.02.02.02 to 53.02.02.04)
- When the Company considers there has been a significant increase in credit risk of an exposure (Note 53.02.02.05)
- The Company’s policy of segmenting financial assets where ECL is assessed on a collective basis (Note 53.02.02.06)
- The details of the ECL calculations for stage 1, stage 2 and stage 3 assets (Note 6.1.xi)
53.02.02.01: Definition of default
The Company considers a financial instrument defaulted and therefore stage 3 (credit-impaired) for ECL calculations in
all cases when the borrower becomes 90 days past due on its contractual payments.
As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances
that may indicate unlikeliness to pay. When such events occur, the Company carefully considers whether the event should
result in treating the customer as defaulted and therefore assessed as stage 3 for ECL calculations or whether stage 2 is
appropriate. Such events include:
- The borrower requesting emergency funding from the Company.
- A material decrease in the underlying collateral value where the recovery of the loan is expected from the sale of the
collateral.
- A covenant breach not waived by the Company.

- The debtor (or any legal entity within the debtor’s Company) filing for bankruptcy application/protection.
- All the facilities of a borrower are treated as stage 3 when one of his facility becomes 90 days past due i.e. credit
impaired.
- The restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise.
53.02.02.02: PD estimation process
It is an estimate of the likelihood of default over a given time horizon. PD estimation process is done based on historical
internal data available with the Company. While arriving at the PD, the Company also ensures that the factors that affects
the macro economic trends are considered to a reasonable extent, wherever necessary. Company calculates the 12 month
PD by taking into account the past historical trends of the portfolio and its credit performance. In case of assets where
there is a significant increase in credit risk, lifetime PD has been applied which is computed based on survival analysis. For
credit impaired assets, a PD of 100% has been applied.
53.02.02.03: Exposure at Default (EAD)
The exposure at default (EAD) represents the gross carrying amount of the financial instruments subject to the impairment
calculation, addressing both the ability to increase its exposure while approaching default and potential early repayments
too.
To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months for the
calculation of the 12 months ECL.
For stage 2 and stage 3 financial assets, the exposure at default is considered for events over the lifetime of the instruments.
In case of undrawn loan commitments, a credit conversion factor of 100% is applied for expected drawdown.
53.02.02.04: Loss Given Default (LGD)
LGD is an estimate of the loss arising in case where a default occurs. It is based on the difference between the contractual
cash flows due and those that the Company would expect to receive, including from the realisation of any security.
53.02.02.05: Significant increase in credit risk(SICR)
The Company continuously monitors all assets subject to ECLs in order to determine whether an instrument or a portfolio
of instruments is subject to 12 month ECL or lifetime ECL. The Company assesses whether there has been an event which
could cause a significantly increase in the credit risk of the underlying asset or the customers’ ability to pay and accordingly
change the 12 month ECL to a lifetime ECL.
In certain cases, the Company may also consider that events explained in Note 53.02.02.01 are a significant increase in
credit risk as opposed to a default. Regardless of the above, if contractual payments are more than 30 days past due, the
credit risk is deemed to have increased significantly since initial recognition.
When estimating ECLs on a collective basis for a Company of similar assets (as set out in Note 53.02.02.06), the Company
applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition.
53.02.02.06: Forward looking information
The Company has incorporated forward looking information and macro-economic factors while calculating PD and LGD
rate. Refer note 62 for impact of COVID-19 on estimate of PD, LGD and SICR.
53.02.02.07: Grouping financial assets measured on a collective basis
As explained in Note 6.1.(xi) dependent on the factors below, the Company calculates ECLs only on a collective basis.
The Company segments the exposure into smaller homogeneous portfolios, based on a combination of internal and
external characteristics of the loans as described below.
1. New vehicle finance
2. Pre owned vehicle finance
3. Business Loans

53.02.03: Analysis of risk concentration

The maximum credit exposure to any individual client or counterparty as of March 31, 2020 was Rs. 51.01 crores (March
31, 2019: Rs. 49.70 crores).
Credit risk exposure analysis
(Rs. in crores)
Stage 1 Stage 2 Stage 3 Total
Normal 86,628.95 10,501.60 6,351.12 103,481.67
Restructured ** - - 1,003.23 1,003.23
Equipment finance - - 7.52 7.52
Repossessed - - 908.45 908.45
Exposure > 1 crore 436.02 130.47 519.74 1,086.23
Other risks-forced/fraud - 1,627.59 387.02 2,014.61
Grand Total 87,064.97 12,259.66 9,177.08 108,501.71
** includes repossessed assets worth Rs. 44.96 crores
53.03: Liquidity risk and funding management
In assessing the company’s liquidity position, consideration shall be given to: (1) present and anticipated asset quality (2)
present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future
funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily
liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. The
Company also enters into securitisation deals (direct assignment as well as pass through certificates) of their loan portfolio,
the funding from which can be accessed to meet liquidity needs. In accordance with the Company’s policy, the liquidity
position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in
general and specifically to the Company. Net liquid assets consist of cash, short–term bank deposits and investments in mutual
fund available for immediate sale, less issued securities and borrowings due to mature within the next month. Borrowings
from banks and financial institutions, issue of debentures and bonds and acceptance of public deposits are considered as
important sources of funds to finance lending to customers. They are monitored using the advances to borrowings ratio,
which compares loans and advances to customers as a percentage of secured and unsecured borrowings. Asset Liability
Management Committee(ALCO) reviews or monitors Asset Liability Management (ALM) mismatch. ALCO conducts
periodic reviews relating to the liquidity position and stress test assuming various what if scenarios.


180
53.03.01: Analysis of financial assets and liabilities by remaining maturities
The table below summarises the maturity profile of the Company’s financial assets and liabilities as at March 31. All derivatives used for hedging and natural hedges are shown
by maturity. Repayments which are subject to notice are treated as if notice were to be given immediately. However, the Company expects that many customers will not request
repayment on the earliest date it could be required to pay and the table does not reflect the expected cash flows indicated by its deposit retention history.
Maturity pattern of assets and liabilities as on March 31, 2020:
(Rs. in crores)
Particulars Less than 3 Over 3 months Over 6 months Over 1 year & Over 3 years & Over 5 years Total
months & upto 6 months & upto 1 year upto 3 years upto 5 years
Financial assets

Cash and cash equivalents 3,088.99 - - - - - 3,088.99
Bank balance other than above 2,480.60 934.41 789.14 21.78 - - 4,225.93
Derivative assets 758.73 - - - - - 758.73
Financial assets at fair value through - - - - - 7.42 7.42
profit and loss
Loans * 6,915.77 14,216.43 23,589.62 64,954.52 25,558.69 1,634.19 136,869.22
Financial investments at amortised cost 80.29 101.63 179.55 519.43 364.27 1,574.75 2,819.92
Trade receivables 10.50 - - - - - 10.50
Other receivables 5.64 - - - - - 5.64
Other financial assets - - - - - 45.15 45.15
Total discounted financial assets 13,340.52 15,252.47 24,558.31 65,495.73 25,922.96 3,261.51 147,831.50
Financial liabilities
Deposits * 768.95 954.94 1,704.67 8,155.32 2,701.97 - 14,285.85
Debt securities * 1,506.34 1,740.07 3,943.97 22,256.44 9,096.87 1,532.02 40,075.71

Borrowings (other than debt securities) * 3,191.71 5,818.22 10,169.69 20,844.94 7,639.45 581.01 48,245.02
Subordinated liabilities * 929.67 326.89 325.03 1,283.78 3,324.54 2,122.82 8,312.73
Trade payables 143.84 - - - - - 143.84
Other payables 1.13 - - - - - 1.13
Other financial liabilities 581.20 147.66 58.96 81.48 41.92 1.10 912.32
Lease liabilities 24.31 20.24 36.42 135.90 83.79 62.15 362.81
Total discounted financial liabilities 7,147.15 9,008.02 16,238.74 52,757.86 22,888.54 4,299.10 112,339.41
Net discounted financial assets/ 6,193.37 6,244.45 8,319.57 12,737.87 3,034.42 (1,037.59) 35,492.09
(liabilities)
* includes future interest

(Rs. in crores)
Financial assets
Bank balance other than above 903.38 1,131.13 198.54 719.28 - - 2,952.33
Financial assets at fair value through 1,552.03 - - - - 8.05 1,560.08
profit and loss
Loans * 15,224.47 12,609.29 21,693.97 55,374.68 17,941.91 1,087.14 123,931.46

Deposits * 891.68 778.19 1,498.30 7,209.38 2,570.91 - 12,948.46
Debt securities * 4,968.51 5,914.48 4,916.06 18,123.86 5,013.82 3,351.01 42,287.74
Borrowings (other than debt securities) * 5,887.43 5,128.06 9,187.54 13,040.62 6,774.54 1,661.06 41,679.25
Trade payables 133.46 - - - - - 133.46

Other payables 2.72 - - - - - 2.72
Other financial liabilities 828.34 11.98 83.77 70.01 4.43 17.95 1,016.48
Derivative liabilities 83.42 - - - - - 83.42
(liabilities)

181
Standalone Accounts
182
The table below shows the expiry by maturity of the Company’s contingent liabilities and commitments: Each undrawn loan commitment is included in the time band
containing the earliest date it can be drawn down.
(Rs. in crores)
Particulars Less than 3 Over 3 Over 6 months Over 1 year & Over 3 years Over 5 years Total
months months & upto 1 year upto 3 years & upto 5 years
& upto 6
months
In respect of Income tax demands where the Company has - - - - - 133.64 133.64
filed appeal before various authorities

VAT demand where the Company has filed appeal before - - - - - 117.21 117.21
various appellates
Service tax demands where the Company has filed appeal - - - - - 325.99 325.99
Penalty levied for Contravention of provisions of Section - - - - - 5.00 5.00
6(3)(b) of FEMA, 1999 read with Regulation 4 of Foreign
Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) Regulations, 2000
Estimated amount of contracts remaining to be executed on 4.15 - - - - - 4.15
capital account, net of advances
Commitments related to loans sanctioned but undrawn 311.87 - - - - - 311.87
Total commitments 316.02 - - - - 581.84 897.86
In respect of Income tax demands where the Company has - - - - - 78.70 78.70
filed appeal before various authorities

VAT demand where the Company has filed appeal before - - - - - 124.30 124.30
various appellates
Service tax demands where the Company has filed appeal - - - - - 198.31 198.31

53.04: Market Risk

Market risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables
such as interest rates, foreign exchange rates and equity prices. The Company classifies exposures to market risk into either
trading or non–trading portfolios and manages each of those portfolios separately.
Interest rate risk
The Company’s exposure to changes in interest rates relates to the Company’s outstanding floating rate liabilities. Most of the
Company’s outstanding liability is on fixed rate basis and hence not subject to interest rate risk. Some of the borrowings of
the Company are linked to rate benchmarks such as Bank MCLR or London Inter-bank Offered Rate (LIBOR) and Mumbai
Inter-Bank Offer Rate (MIBOR) and hence subject to interest rate risk. The Company hedges interest rate risks of foreign
currency borrowings through derivative transactions. The sensitivity of the Company’s floating rate borrowings to change in
interest rate (assuming all other variables constant) is given below:
As at March 31, 2020 (Rs. in crores)
Particulars Carrying amount Favourable change 1% Unfavourable change 1%
decrease increase
Debt instrument 175.00 9.01 (8.48)
Term loans 9,941.92 875.54 (640.63)
Total floating rate borrowings 10,116.92 884.55 (649.11)

increase decrease
Debt instrument 2,360.00 232.28 (288.97)
Term loans 10,855.48 672.97 (839.79)
Total floating rate borrowings 13,215.48 905.25 (1,128.76)
54 Disclosure under the MSME Act 2006, (as per the intimation received from the vendor)
Based on the intimation received by the Company, some of the suppliers have confirmed to be registered under “The Micro,
Small and Medium Enterprises Development (‘MSMED’) Act, 2006”. Accordingly, the disclosures relating to amounts
unpaid as at the year ended together with interest paid /payable are furnished below:
(Rs. in crores)
As at As at
The principal amount remaining unpaid to supplier as at the end of the year 0.40 -
The interest due thereon remaining unpaid to supplier as at the end of the year - -
The amount of interest paid in terms of Section 16, along with the amount of
- -
payment made to the supplier beyond the appointed day during the year
The amount of interest due and payable for the year of delay in making payment
(which have been paid but beyond the appointed day during the year) but without - -
adding the interest specified under this Act
The amount of interest accrued during the year and remaining unpaid at the end
- -
of the year
The amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
- -
small enterprise for the purpose of disallowance as a deductible expenditure under
section 23 of the Micro, Small and Medium Enterprise Development Act, 2006

55 Disclosure regarding auditors remuneration disclosed under legal and professional fees
In addition to the auditors remuneration shown in note 42 Other expenses, the Company has also incurred auditors
remuneration in connection with audit and related statutory services to be performed by auditors in connection with issue
of senior secured notes of Rs. 0.83 crores (March 31, 2019: Rs. 0.26 crores) [including out-of-pocket expenses of Rs. Nil
(March 31, 2019: Rs. Nil)] shown under Legal and professional fees in note 42 Other expenses.
56 Disclosure regarding auditors remuneration disclosed under finance cost
In addition to the auditors remuneration shown under note 42 Other expenses, the Company has also incurred auditors
remuneration in connection with audit and related statutory services to be performed by auditors in connection with
public issue of non-convertible debentures of Rs. 0.36 crores (March 31, 2019: Rs. 0.48 crores) amortised portion of which
is included in note 37 Finance Costs under interest on debentures and unamortised portion of which is included in note
22 Debt securities under Redeemable non-convertible debentures - Secured -Public issue.
57 Segment Reporting
The Company is primarily engaged in the business of financing and there are no separate reportable segments identified as
per the Ind AS 108 - Segment Reporting.
58 Transfer of financial assets
Note 58.01: Transferred financial assets that are not derecognised in their entirety
The following table provides a summary of financial assets that have been transferred in such a way that part or all of the
transferred financial assets do not qualify for derecognition, together with the associated liabilities.
(Rs. in crores)
As at As at
Securitisation
Carrying amount of transferred assets measured at amortised cost(Held as collateral) 21,612.72 17,770.52
Carrying amount of associated liabilities (Borrowings (other than debt securities)-
21,452.04 17,738.52
measured at amortised cost)
Fair value of assets 20,054.22 16,355.39
Fair value of associated liabilities 20,358.45 15,918.57
Net position at fair value (304.23) 436.82
Note 58.02: Transferred financial assets that are derecognised in their entirety
The Company has assigned loans (earlier measured at amortised cost) by way of direct assignment. As per the terms of
these deals, since substantial risk and rewards related to these assets were transferred to the extent of 90% of the assets
transferred to the buyer, the assets have been de-recognised from the Company’s Balance Sheet. The table below summarises
the carrying amount of the derecognised financial assets :
(Rs. in crores)
As at As at
Direct assignment
Carrying amount of transferred assets measured at amortised cost 1,427.81 2,428.39
Carrying amount of exposures retained by the Company at amortised cost 142.78 253.60
Note 58.03: Transferred financial assets that are derecognised in their entirety but where the Company has continuing
involvement
The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have
continuing involvement.

59 Expenditure in foreign currency (accrual basis)

(Rs. in crores)
Resource mobilisation 148.09 67.78
Legal and professional charges - 0.60
Membership fees 0.00 0.00
Total 148.09 68.39
60 Details of CSR expenses

(Rs. in crores)
a) Gross amount required to be spent by the Company during the year 52.82 39.51
b) Amount spent during the year
- On purposes other than construction/acquisition of any asset
Paid in cash 53.16 40.06
Yet to be paid in cash - -
Total 53.16 40.06
61 Movement in provisions
(Rs. in crores)
Particulars As at Additional provision Utilisation/ As at
March 31, 2019 made during the year reversal during March 31, 2020
the year
Provision for taxes- contested 92.75 - - 92.75
(Rs. in crores)
April 01, 2018 made during the year reversal during March 31, 2019
the year
The above provisions relate to disputed tax demands in relation to VAT and Service tax. Due to the very nature of such
provisions and the litigations involved, it is not possible to estimate the timing/ uncertainties relating to their outflows.
62 Note on Covid
The spread of SARS-CoV-2 virus (referred as ‘COVID-19’) across the globe and in India has contributed to a significant
decline and volatility in global and Indian financial markets and a shrink in the economic activities. The Government
of India declared 21-day nation-wide lock-down to contain the pandemic COVID-19 with effect from March 25, 2020.
The Government then extended the lockdown till May 31, 2020. However, the government relaxed the lock-down in
certain essential areas including plying commercial vehicles for transportation of essential and non-essential goods across
the country. In terms of COVID-19 regulatory package announced by Reserve Bank of India ( RBI ) on March 27, 2020
and in accordance with the Scheme approved by the Board of directors of the Company, the Company has extended
the moratorium to the eligible borrowers for instalments falling due between March 1, 2020 and May 31, 2020. Further,
pursuant to RBI notification dated May 23, 2020, the moratorium is given to eligible borrowers for a further period of
three months upto August 31, 2020. Extension of such moratorium benefit to borrowers as per the COVID-19 Regulatory
package of the RBI by itself is not considered to result in significant increase in credit risk as per Ind AS 109 for staging of
accounts. The staging of accounts as on March 31, 2020 with respect to assets which were overdue though standard and to
whom moratorium has been granted is based on the days past due as on February 29, 2020 keeping it at standstill. Further,
estimates and associated assumptions applied in preparing the financial statements, especially in respect of credit loss on
loans, are based on historical experience and other emerging/forward looking factors including those arising on account
of the COVID-19 pandemic.

62 Note on Covid (Contd.)
The Company has used relevant indicators of moratorium, considering various measures taken by Government and other
authorities along with an estimation of potential stress on probability of defaults and loss given defaults due to COVID-19
situation in developing the estimates and assumptions to assess the expected credit loss on loans, including on account of
potential macro-economic conditions. Based on such assessment, the Company has made additional expected credit loss
provision of Rs 909.64 crores on account of COVID-19 impact in the financial statement. The impairment loss provided
for on account of COVID-19 pandemic is based on the assessment of current situation and the actual impairment loss
could be different due to uncertainty over duration of pandemic and restoration of normalcy.
63 Events after reporting date
There have been no events after the reporting date except the following:
The ratings of the Company which have been downgraded by the various rating agencies after March 31, 2020 are given
below:
Credit Rating Agency Instruments As at March 31, 2020 Current Rating as on date
CRISIL Bank Loan Long-term CRISIL AA+/Stable CRISIL AA+/Negative
CRISIL Fixed deposit CRISIL FAAA/Stable CRISIL FAAA/ Negative
CRISIL Non-convertible CRISIL AA+/Stable CRISIL AA+/Negative
debenture
CRISIL Long Term Principal CRISIL PP-MLD CRISIL PP-MLD AA+r/
Protected Market AA+r/Stable Negative
Linked Debentures
CRISIL Subordinated debt CRISIL AA+/Stable CRISIL AA+/Negative
India Ratings & Research Private Limited Non-convertible IND AA+/Stable IND AA+/RWN
(Formerly known as “FITCH”) debenture Outlook
India Ratings & Research Private Limited Subordinated debt IND AA+/Stable IND AA+/RWN
(Formerly known as “FITCH”) Outlook
India Ratings & Research Private Limited Structured Non- Provisional IND This rating is now
(Formerly known as “FITCH”) Convertible AAA(CE)/Stable withdrawn
Debentures
Standard & Poor’s Ratings Offshore Rupee BB+ BB
Denominated Bond
(Masala Bond)
Standard & Poor’s Ratings U.S. Dollar Senior BB+ BB
Secured Notes
Standard & Poor’s Ratings Long-Term Issuer BB+/Negative BB/Negative
Credit Rating
RWN=Rating Watch Negative
64 Floating charge on investment in government securities
In accordance with the Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve
Bank) Directions, 2016 dated August 25, 2016, the Company has created a floating charge on the statutory liquid assets
comprising of investment in government securities (face value) to the extent of Rs. 1,758.76 crores (March 31, 2019: Rs.
1,463.76 crores) in favour of trustees representing the public deposit holders of the Company.

65 Disclosure of restructured accounts
(Rs. in crores)
Type of restructuring Others
Financial year Year ended March 31, 2020 Year ended March 31, 2019
Sr. Sub- Sub-
No. Asset classification Standard standard Doubtful Loss Total Standard standard Doubtful Loss Total
1 Restructured accounts as on April 1 No. of borrowers 8,514 8,741 5,180 97 22,532 353 14,462 6,543 1,638 22,996
Amount outstanding 228.00 535.06 271.81 4.37 1,039.24 12.99 646.01 221.71 61.76 942.47
Provision thereon 39.91 182.45 83.26 1.24 306.86 1.30 100.65 75.43 22.79 200.17
2 Fresh restructuring during the year No. of borrowers - 16,497 - - 16,497 - 9,208 - - 9,208
Amount outstanding - 756.20 - - 756.20 - 573.04 - - 573.04
Provision thereon - 254.33 - - 254.33 - 122.65 - - 122.65
3 Upgradation No. of borrowers 7,006 (5,167) (1,838) (1) - 8,514 (7,035) (1,412) (67) -
Amount outstanding 315.26 (225.21) (90.05) - - 306.44 (262.36) (42.45) (1.63) -
Provision thereon 103.25 (75.12) (28.13) - - 51.53 (37.43) (13.55) (0.55) -
4 Restructured standard advances which No. of borrowers (8,514) - - - (8,514) (353) - - - (353)
cease to attract higher provisioning
Amount outstanding (228.00) - - - (228.00) (12.99) - - - (12.99)
and/or additional risk weight at the
end of the year and hence need not be Provision thereon (39.90) - - - (39.90) (1.30) - - - (1.30)
shown as restructured advances at the
beginning of the next year
5 Downgradation of restructured No. of borrowers - (2,365) 1,805 560 - - (3,006) 3,201 (195) -
accounts during the year
Amount outstanding - (250.36) 211.55 38.81 - - (180.81) 190.02 (9.21) -
Provision thereon - (88.14) 75.64 12.50 - - (25.30) 28.64 (3.34) -

6 Write-offs of restructured accounts No. of borrowers (843) (2,046) (2,639) (80) (5,608) - (4,888) (3,152) (1,279) (9,319)
during the year
Amount outstanding (85.60) (121.97) (123.34) (3.65) (334.56) (78.44) (240.82) (97.47) (46.55) (463.28)
Provision thereon (83.58) (35.30) (37.80) (0.83) (157.51) (11.62) 21.88 (7.26) (17.66) (14.66)
7 Restructured accounts as on No. of borrowers 6,163 15,660 2,508 576 24,907 8,514 8,741 5,180 97 22,532
March 31
Amount outstanding 229.66 693.72 269.97 39.53 1,232.88 228.00 535.06 271.81 4.37 1,039.24
Provision thereon 19.68 238.22 92.97 12.91 363.78 39.91 182.45 83.26 1.24 306.86
Note:
i. The outstanding amount and number of borrowers as at March 31, 2020 and March 31, 2019 is after considering recoveries during the year.
ii. Additional facilities availed by borrowers or addition in outstanding balance in existing restructured accounts and partial repayments in existing restructured accounts are adjusted and disclosed under “Write-
offs of restructured accounts”, however, for the purpose of arithmetical accuracy the number of existing borrowers availing additional facility or partial repayments have been ignored.
iii. The Company has classified all the restructured accounts under stage 3 for ECL Calculations under Ind AS and Provision for Impairment Loss on all the restructured accounts have been provided in the books
accordingly.
iv. Since the disclosure of restructured accounts pertains to section “Others”, the first two sections namely “Under CDR Mechanism” and “Under SME Debt Restructuring Mechanism” as per the format prescribed

in the Master Directions - Non-Banking Financial Company - Systemically Important Non-Deposit taking company and Deposit Taking Company (Reserve Bank) Directions 2016 as amended are not included
above.
v. For the purpose of arithmetical accuracy, movement in provisions in the existing restructured account as compared to balance of provision as disclosed in opening balance and fresh restructuring on account
sale/ recovery/settlement (for any change in provision) is adjusted and disclosed under “Write-offs of restructured accounts” during the year.
187
Standalone Accounts
66 Asset Classification as per RBI Norms
Disclosure in Notes to Financial Statements

For the year ended March 31, 2020 (Rs. in crores)
Loss
Allowances Difference
Asset (Provisions) Provisions between Ind AS
classification Gross Carrying as required required as 109 provisions
Asset Classification as per RBI as per Ind AS Amount as per under Ind AS Net Carrying per IRACP and IRACP
Norms 109 Ind AS 109 Amount norms norms
(1) (2) (3) (4) (5) (6) (7)
Performing Assets
Standard Stage 1 87,064.97 2,156.05 84,908.92 1,495.05 661.00
Stage 2 12,259.66 928.08 11,331.58 997.81 (69.73)
Subtotal 99,324.63 3,084.13 96,240.50 2,492.86 591.27
Non-Performing Assets
(NPA)
Substandard Stage 3 6,043.64 2,118.64 3,925.00 588.01 1,530.63
Doubtful - up to 1 year Stage 3 631.93 212.40 419.53 189.79 22.61
1 to 3 years Stage 3 230.05 73.17 156.88 117.30 (44.13)
More than 3 years Stage 3 - - - - -
Subtotal for doubtful 861.98 285.57 576.41 307.09 (21.52)
Loss Stage 3 2,271.46 781.74 1,489.72 2,135.16 (1,353.42)
Subtotal for NPA 9,177.08 3,185.95 5,991.13 3,030.26 155.69
Other items such as guarantees, Stage 1 1,254.66 40.78 1,213.88 - 40.78
loan commitments, etc. which are Stage 2 52.67 18.43 34.24 - 18.43
in the scope of Ind AS 109 but not
Stage 3 2.63 2.70 (0.07) - 2.70
covered under current Income
Recognition, Asset Classification
and Provisioning (IRACP) norms
Subtotal 1,309.96 61.91 1,248.05 - 61.91
Total Stage 1 88,319.63 2,196.83 86,122.80 1,495.05 701.78
Stage 2 12,312.33 946.51 11,365.82 997.81 (51.30)
Stage 3 9,179.71 3,188.65 5,991.06 3,030.26 158.39
Total 109,811.67 6,331.99 103,479.68 5,523.12 808.87
67 Asset classification and provisioning disclosure

Disclosure as per the circular no DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 issued by Reserve Bank of India
on “COVID 19 regulatory package - Asset Classification and provisioning”
For the year ended March 31, 2020
i) Amounts in SMA/overdue categories where moratorium/deferment was extended in terms of paragraph 2 and 3 of the
above circular
(Rs. in crores)
SMA category Amount
SMA 0 23,601.37
SMA 1 13,884.42
SMA 2 4,425.63
Total 41,911.42
ii) Respective amount where asset classification benefit is extended : Rs. 1,334.38 crores
iii) Provisions made during quarter ended March 31, 2020 in terms of paragraph 5 of the above circular :
The provision made by the Company as per the ECL model is more than the provision required as per IRAC norms which
is inclusive of additional 5% provision of Rs. 2,095.57 crores as per the above circular.

67 ASSET CLASSIFICATION AND PROVISIONING DISCLOSURE (Contd.)
iv) Provisions adjusted against the respective accounting periods for slippages and residual provisions in terms of paragraph
6 of the above circular : Not applicable
Additional disclosures required by the Reserve Bank of India (RBI)

The additional disclosures required by RBI are prepared under Indian Accounting Standards (Ind AS) issued by MCA unless
otherwise stated.
68 Ratings assigned by credit rating agencies and migration of ratings during the year
Instruments Credit rating agency As on March 31, 2020 As on March 31, 2019
Bank Loan Long-term CRISIL CRISIL AA+/Stable CRISIL AA+/Stable
Bank Loan Short-term CRISIL CRISIL A1+ CRISIL A1+
Commercial Paper India Ratings & Research IND A1+ IND A1+
Private Limited (Formerly
known as “FITCH”)
Commercial Paper CARE CARE A1+ CARE A1+
Fixed deposit CRISIL CRISIL FAAA/Stable CRISIL FAAA/Stable
Long Term Principal Protected Market CRISIL CRISIL PP-MLD AA+r/
Linked Debentures Stable
Structured Non-Convertible Debentures India Ratings & Research Provisional IND AAA(CE)/
Private Limited (Formerly Stable
Fixed deposit ICRA MAA+ with Stable outlook MAA+ with Stable
outlook
Long-Term Issuer Credit Rating Standard & Poor’s Ratings BB+/Negative Outlook BB+/Stable
Long-Term Issuer Default Rating Fitch Ratings BB/RWN BB+/Stable Outlook
Non-convertible debenture CARE CARE AA+/Stable CARE AA+/Stable
Non-convertible debenture CRISIL CRISIL AA+/Stable CRISIL AA+/Stable
Non-convertible debenture India Ratings & Research IND AA+/Stable Outlook IND AA+/Stable
Private Limited (Formerly Outlook
Offshore Rupee Denominated Bond Standard & Poor’s Ratings BB+ BB+
(Masala Bond)
U.S. Dollar Senior Secured Notes Standard & Poor’s Ratings BB+ BB+
Offshore Rupee Denominated Bond Fitch Ratings BB BB+
(Masala Bond)
U.S. Dollar Senior Secured Notes Fitch Ratings BB BB+
Short term debt CRISIL CRISIL A1+ CRISIL A1+
Short-Term Issuer Credit Rating Standard & Poor’s Ratings B B
Short-Term Issuer Default Rating Fitch Ratings B B
Subordinated debt CARE CARE AA+/Stable CARE AA+/Stable
Subordinated debt India Ratings & Research IND AA+/Stable IND AA+/Stable
Private Limited (Formerly
Subordinated debt CRISIL CRISIL AA+/Stable CRISIL AA+/Stable

69 Capital
(Rs. in crores)
As at As at
Particulars March 31, 2020 # March 31, 2019
i) CRAR (%) 21.99 20.27
ii) CRAR - Tier I capital (%) 18.13 15.62
iii) CRAR - Tier II capital (%) 3.86 4.65
iv) Amount of subordinated debt raised as Tier-II capital* 5,591.73 6,040.74
v) Amount raised by issue of Perpetual debt instruments - -
# calculated as per RBI notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 “Implementation
of Indian Accounting Standards” issued by RBI on March 13, 2020.
“Tier I capital”, “Tier II capital”, “Owned fund” are calculated as defined in Master Direction - Non-Banking Financial
Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 and notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 “Implementation of
Indian Accounting Standards” issued by RBI on March 13, 2020.
* Note:
Discounted value of Rs. 4,046.46 crores (March 31, 2019: Rs. 4,688.17 crores) considered for Tier II capital against the
book value of Rs. 5,591.73 crores (March 31, 2019: Rs. 6,040.74 crores).
70 Investments
(Rs. in crores)
As at As at
(1) Value of investments
(i) Gross value of investments
(a) In India 2,840.71 3,999.08
(b) Outside India, - -
(ii) Provisions for depreciation
(a) In India 42.23 0.01
(iii) Net value of investments
(a) In India 2,798.48 3,999.07
(2) Movement of provisions held towards depreciation on investments
(i) Opening balance 0.01 0.07
(ii) Add : Provisions made during the year 42.22 -
(iii) Less : Write-off/write-back of excess provisions during the year - 0.06
(iv) Closing balance 42.23 0.01

71 Derivatives
71.01: Forward rate agreement/Interest rate swap
(Rs. in crores)
As at As at
(i) The notional principal of swap agreements 24,921.80 5,682.09
Losses which would be incurred if counterparties failed to fulfill their - -
(ii)
obligations under the agreements
(iii) Collateral required by the NBFC upon entering into swaps - -
(iv) Concentration of credit risk arising from the swap - -
(v) The fair value of the swap book 758.73 5,682.09
71.02: Exchange traded interest rate (IR) derivatives : Nil
71.03: Disclosures on risk exposure of derivatives
Qualitative disclosures
The Company has a Board approved policy in dealing with derivative transactions. Derivative transaction consists of
hedging of foreign exchange transactions, which includes interest rate and currency swaps, interest rate options and
forwards. The Company undertakes derivative transactions for hedging on-balance sheet assets and liabilities. Such
outstanding derivative transactions are accounted on accrual basis over the life of the underlying instrument. The Asset
Liability Management Committee and Risk Management Committee closely monitors such transactions and reviews the
risks involved.
The Company has entered into derivative agreement to mitigate the foreign exchange risk and interest rate risk pertaining
to external commercial borrowings and foreign currency bonds. The description of risk policies and risk mitigation
strategies are disclosed in note 53 of the financial statements.
Quantitative Disclosures
(Rs. in crores)
As at As at
March 31, 2020 March 31, 2019
Currency Interest rate Currency Interest rate
Particulars derivatives derivatives derivatives derivatives
(i) Derivatives (Notional principal amount)
For hedging 16,177.17 8,744.63 5,682.09
(ii) Marked to market positions
a) Asset (+) 709.05 49.68 - -
b) Liability (-) - - - -
(iii) Credit exposure - - - -
(iv) Unhedged exposures - - - -

72 Disclosures relating to securitisation

72.01: Outstanding amount of securitised/assigned assets as per books of the SPVs sponsored:
The information on securitisation of the Company as an originator in respect of outstanding amount of securitised assets
is given below:
(Rs. in crores)
Sr. As at As at
No. Particulars March 31, 2020 March 31, 2019
1 No of SPVs sponsored by the NBFC for securitisation transactions (in No.) 72 65
2 Total amount of securitised assets as per books of the SPVs sponsored 20,487.93 16,376.03
Total amount of exposures retained by the NBFC to comply with MRR as on the
3
date of Balance Sheet
(a) Off-Balance Sheet exposures
First loss 35.08 9.85
Others - -
(b) On-Balance Sheet exposures
First loss 2171.17 1,708.24
Others 942.79 877.81
4 Amount of exposures to securitisation transactions other than MRR
(i) Exposure to own securitisations
First loss - -
Loss 651.41 910.43
(ii) Exposure to third party securitisations
First loss - -
Others - -

First loss - -
Others 1,441.75 964.35
(ii)Exposure to third party securitisations
First loss - -
Others - -
The information on direct assignment of the Company as an originator in respect of outstanding amount of assets assigned
under par structure is given below:
(Rs. in crores)
Sr. As at As at
1 No. of transactions assigned by the Company 3 27
2 Total amount outstanding 1,427.81 2,428.39
Total amount of exposures retained by the Company to comply with MRR as on
3
the date of Balance Sheet
First loss - -
Others - -
First loss - -
Others 142.78 253.60
4 Amount of exposures to assigned transaction other than MRR
First loss - -
Loss - -
First loss - -
Others - -
First loss - -
Others - -
First loss - -
Others - -

72 Disclosures relating to securitisation (Contd.)

The information on direct assignment of the Company as an originator in respect of outstanding amount of assets assigned
under premium structure is given below:
(Rs. in crores)
Sr. As at As at
1 No. of transactions assigned by the Company - -
2 Total amount outstanding - -
Total amount of exposures retained by the Company to comply with MRR as on
3
the date of Balance Sheet
First loss - -
Others - -
First loss - -
Others - -
4 Amount of exposures to assigned transaction other than MRR
First loss - -
Loss - -
First loss - -
Others - -
First loss - -
Others - -
First loss - -
Others - -
72.02: Details of financial assets sold to securitisation/reconstruction company for asset reconstruction
The Company has not sold any financial assets to securitisation/reconstruction company for asset reconstruction during
the year ended March 31, 2020 and March 31, 2019.
72.03: Details of assignment transactions undertaken by the Company
(Rs. in crores)
Year Ended Year Ended
i) No. of accounts - 76,129
ii) Aggregate value (net of provisions) of accounts sold - 2,725.46
iii) Aggregate consideration * - 2,735.34
Additional consideration realized in respect of accounts transferred in 22.18 1.85
iv)
earlier years
v) Aggregate gain/loss over net book value - 11.73
* Includes income on assignment transactions realised in respect of accounts transferred in previous year.
72.04: Details of non-performing financial assets purchased / sold by the Company
The Company has not purchased/sold non-performing assets for the year ended March 31, 2020 and March 31, 2019.

73 Asset liability management maturity pattern of certain items of assets and liabilities
(Rs. in crores)
Upto Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total
30/31 month months months months year & years & years
days upto 2 upto 3 & upto 6 & upto 1 upto 3 upto 5
Particulars months months months year years years
Deposits * 358.59 223.81 223.16 822.14 1,340.18 6,945.86 2,156.98 - 12,070.72
Advances ** # 56.38 668.02 2,133.62 8,688.79 16,740.50 49,917.57 22,576.28 1,450.47 102,231.63
Investments 32.37 41.38 6.54 101.63 179.55 519.43 340.48 1,577.10 2,798.48
Borrowings *** 1,398.12 709.36 2,460.27 6,374.02 11,680.97 28,621.82 11,382.49 2,916.38 65,543.43
Foreign currency
- - - - - - - - -
assets
Foreign currency
1,419.13 - 13.81 78.20 54.81 8,377.29 6,459.71 504.67 16,907.62
liabilities
# The Board of Directors of the Company have approved moratorium policy in their meeting held on June 10, 2020 for a further period
of 3 months from June 2020 to August 2020 pursuant to the Reserve Bank of India Notification no. RBI/2019-20/244 DOR.No.BP.BC.
71/ 21.04.048/ 2019-20 dated May 23, 2020 to eligible borrowers. The same is in the process of being implemented. Consequently the
effect of the further moratorium extended as mentioned above is not considered in the above ALM disclosure.
(Rs. in crores)
Upto Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total
30/31 month months months months year & years & years
days upto 2 upto 3 & upto 6 & upto 1 upto 3 upto 5
Particulars months months months year years years
Deposits * 508.86 197.78 199.01 606.07 1,115.09 5,844.07 2,017.60 - 10,488.48
Advances ** 3,305.69 5,075.97 3,095.55 9,191.82 15,986.25 43,388.41 15,745.89 961.91 96,751.49
Investments 352.80 43.75 1,268.01 149.43 197.10 460.81 330.04 1,197.13 3,999.07
Borrowings *** 2,602.60 4,251.98 3,069.79 8,990.93 12,606.78 23,169.70 8,890.43 8,870.62 72,452.83
Foreign currency - - - - - - - - -
assets
Foreign currency 17.23 (1.49) 11.30 21.95 (9.38) 2,725.08 2,381.80 - 5,146.49
liabilities
* includes deposits from corporates and unclaimed matured deposit.
** net of Impairment loss allowance.
*** excludes deposits which are shown separately and External commercial borrowings and external commercial bond which are shown
separately under Foreign currency liabilities.
74 Exposures
74.01: Exposure to real estate sector
The Company has no exposure to real estate sector.
74.02: Exposure to capital market
(Rs. in crores)
As at As at
(i) Direct investment in equity shares, convertible bonds, convertible 19.75 20.45
debentures and units of equity-oriented mutual funds the corpus of which
is not exclusively invested in corporate debt;
(ii) Advances against shares/bonds/debentures or other securities or on clean - -
basis to individuals for investment in shares (including IPOs/ESOPs),
convertible bonds, convertible debentures, and units of equity-oriented
mutual funds;

74 Exposures (Contd.)
(Rs. in crores)
As at As at
(iii) Advances for any other purposes where shares or convertible bonds or - -
convertible debentures or units of equity oriented mutual funds are taken
as primary security;
(iv) Advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds i.e. where the primary security other
than shares/convertible bonds/convertible debentures/units of equity
oriented mutual funds 'does not fully cover the advances;
(v) Secured and unsecured advances to stockbrokers and guarantees issued - -
on behalf of stockbrokers and market makers;
(vi) Loans sanctioned to corporates against the security of shares/bonds/ - -
debentures or other securities or on clean basis for meeting promoter's
contribution to the equity of new companies in anticipation of raising
resources;
(vii) Bridge loans to companies against expected equity flows/issues; - -
(viii) All exposures to Venture Capital Funds (both registered and unregistered) 1.04 0.97
Total exposure to capital market 20.79 21.42
74.03: Details of financing of parent company products
The Company does not have any Parent Company, hence not applicable.
74.04: Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the NBFC

The Company has not exceeded the prudential exposure limits for Single Borrower Limit (SGL) / Group Borrower Limit
(GBL).
74.05: Unsecured advances
The Company has not granted unsecured advances against collateral of intangible securities such as charge over the rights,
licenses or authority.
75 Additional disclosures
75.01: Provisions and contingencies
(Rs. in crores)
Break up of 'Provisions and contingencies' shown under the head Year ended Year ended
expenditure in Profit and Loss account March 31, 2020 March 31, 2019
Provisions for depreciation on investment - -
Provision towards NPA# 1,680.91 1,590.06
Provision made towards income tax 921.20 1,346.37
Provision for Standard Assets ## - -
Other Provision and contingencies (with details)
Provision towards impairment of financial instruments other than provision 1,113.97 792.20
for stage 3 assets
# Provision for stage 3 assets
## Provision for standard assets is included in provision towards impairment of financial instruments other than provision
for stage 3 assets.
75.02: Draw down from reserves
The draw down from reserves was Rs. Nil.


75 Additional disclosures (Contd.)

75.03: Concentration of Deposits, Advances, Exposures and NPAs
75.03.01: Concentration of Deposits (for deposit taking NBFCs)
(Rs. in crores)
As at As at
Total deposits of twenty largest depositors 723.28 735.67
Percentage of deposits of twenty largest depositors to total deposits of the 6.07% 7.11%
NBFC
75.03.02: Concentration of advances

(Rs. in crores)
As at As at
Total advances to twenty largest borrowers * 345.11 328.21
Percentage of advances to twenty largest borrowers to total advances of the NBFC * 0.32% 0.32%
*Excludes retained interest on direct assignment Rs. 142.78 crores (March 31, 2019: Rs. 253.60 crores)
75.03.03: Concentration of exposures
(Rs. in crores)
As at As at
Total exposure to twenty largest borrowers/customers * 347.76 328.97
Percentage of exposures to twenty largest borrowers/customers to total 0.32% 0.32%
exposure of the NBFC on borrowers/customers *
* Excludes retained interest on direct assignment Rs. 142.78 crores (March 31, 2019: Rs. 253.60 crores)
75.03.04: Concentration of NPAs
(Rs. in crores)
As at As at
Total exposure to top four NPA accounts** 132.36 102.66
** NPA accounts refer to stage 3 assets.
75.03.05: Sector-wise NPAs # $
As at As at
March 31, 2020 March 31, 2019
Percentage of NPAs Percentage of NPAs
Sr. Sector to Total Advances in to Total Advances in
No. that sector that sector
1 Agriculture & allied activities - -
2 MSME - -
3 Corporate borrowers - -
4 Services - -
5 Unsecured personal loans - -
6 Auto loans 7.68% 8.07%
7 Others 21.82% 14.14%
# The loans mentioned above include loans given to corporates.
$ NPA accounts refer to stage 3 assets.

76 Movement of NPAs $
(Rs. in crores)
(i) Net NPAs to net advances (%) 5.69% 5.68%
(ii) Movement of NPAs (Gross)
(a) Opening balance 8,616.27 8,934.46
(b) Additions during the year 13,506.74 6,638.30
(c) Reductions during the year (12,945.93) (6,956.49)
(d) Closing balance 9,177.08 8,616.27
(iii) Movement of Net NPAs
(b) Additions during the year 9,305.19 4,396.99
(c) Reductions during the year (8,960.59) (4,590.53)
(iv) Movement of provisions for NPAs (excluding provisions on standard assets)
(b) Provisions made during the year 4,201.55 2,241.31
(c) Write-off/write-back of excess provisions (3,985.34) (2,365.96)
$ NPA accounts refer to stage 3 assets.
77 Overseas assets (for those with joint ventures and subsidiaries abroad)
The Company does not have any joint venture or subsidiary abroad, hence not applicable.
78 Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
The Company has not sponsored any off-balance sheet SPV which are required to be consolidated as per accounting
norms.
79 Customer complaints

(a) Number of complaints pending at the beginning of the year 60 72
(b) Number of complaints received during the year 2,007 2,583
(c) Number of complaints redressed during the year 2,039 2,595
(d) Number of complaints pending at the end of the year 28 60
80 Information on instances of fraud
Instances of fraud for the year ended March 31, 2020: (Rs. in crores)
Amount of
Nature of fraud No. of cases fraud Recovery* Amount written-off
Fraud committed by employees 3 0.18 0.01 -
Fraud committed by borrowers and 2 0.28 0.04 0.19
outsiders
* includes Rs. 0.04 crores recovered from the fraud cases reported during the year ended March 31, 2019.
Instances of fraud for the year ended March 31, 2019: (Rs. in crores)
Amount of
Nature of fraud No. of cases Recovery Amount written-off
fraud
Fraud committed by borrowers and 13 1.08 0.22 -
outsiders

81 Disclosure of Penalties imposed by RBI and other regulators
Details of Penalties levied by various regulators for the year ended March 31, 2020: (Rs. in crores)
Sr. Authority Non-compliance/ Penalty Penalty Penalty Penalty Date of Status as on March 31,
No violation levied paid provided Waived/ payment 2020
Reduced/
Stay
Received
1 Reserve Bank of Nil Nil Nil Nil Nil Nil Nil
India
2 Insurance Clause ll(3)(ii)(a), Clause 0.15 0.15 Nil Nil October Paid
Regulatory and ll(3)(ii)(m), Clause ll(3)(ii) 31, 2019
Development (o) of Schedule-lll under
Authority of India Regulation 26 of IRDAI
(Registration of Corporate
Agents) Regulations, 2015
regarding Engagement
of persons other than
Specified Persons to
procure business
3 Enforcement Contravention of 5.00 Nil Nil Nil Nil Disclosed under Note
Directorate (ED) provisions of Section 49: Contingent liabilities,
/ Adjudicating 6(3)(b) of FEMA, 1999 commitments and
Authority/ read with Regulation leasing arrangements
Tribunal or any 4 of Foreign Exchange as the Company has
authority under Management (Transfer filed a writ petition with
FEMA or Issue of Security by a Madras High Court.
Person Resident outside
India) Regulations, 2000
4 Registrar of Nil Nil Nil Nil Nil Nil Nil
Companies/
NCLT/ CLB/
Department of
Corporate Affairs
or any Authority
under Companies
Act, 1956
5 Securities and Nil Nil Nil Nil Nil Nil Nil
Exchange Board
of India
6 Competition Nil Nil Nil Nil Nil Nil Nil
Commission of
India
No penalties have been levied by any regulator on the Company for the year ended March 31, 2019.

82 Previous year comparatives

Previous year’s figures have been regrouped/reclassified wherever necessary, to conform to current year’s classification.


Mumbai Mumbai
June 10, 2020 June 10, 2020

As required in terms of paragraph 18 of Master Direction - Non-Banking Financial Company - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
Schedule to the Balance Sheet
(Rs. in crores)
Particulars As at March 31, 2020

Liabilities side :
(1) Loans and advances availed by the NBFCs inclusive of interest accrued thereon Amount Amount
but not paid: outstanding overdue
(a) Debenture : Secured 20,016.37 15.45 #
: Unsecured 454.11 Nil
(other than falling within the meaning of public deposits*)
(b) Deferred Credits Nil Nil
(c) Term Loans 36,157.60 Nil
(d) Inter-corporate loans and borrowing 39.42 Nil
(e) Commercial Paper Nil Nil
(f) Public Deposits* @ 11,918.17 149.69 #
(g) Other Loans - Subordinated debts 5,751.76 81.69 #
- Cash Credit 2,016.39 Nil
- Deposits from corporates 152.55 0.33 #
- Senior secured notes 1,204.92 Nil
- External commercial borrowing- Secured 4,300.61 Nil
- External commercial bond -Secured 12,607.01 Nil
@ excludes deposits from corporates
*Please see note 1 below
# Represent amounts unclaimed
(Rs. in crores)
(2) Break-up of (1)(f) above (Outstanding public deposits inclusive of interest Amount Amount
accrued thereon but not paid): outstanding overdue
(a) In the form of Unsecured debentures Nil Nil
(b) In the form of partly secured debentures i.e Nil Nil
debentures where there is a shortfall in the
value of security
(c) Other public deposits @ 11,918.17 149.69 #
@ excludes deposits from corporates

*Please see note 1 below
# Represent amounts unclaimed
(Rs. in crores)
Amount
Assets side :
outstanding
(3) Break-up of loans and advances including bills receivables (other than those
included in (4) below ):
(a) Secured 105,061.35
(b) Unsecured 3,428.63


(Rs. in crores)
(4) Break up of Leased Assets and stock on hire and other assets counting towards Amount
asset financing activities € outstanding
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease Nil
(b) Operating lease Nil
(ii) Stock on hire including hire charges under sundry debtors :
(a) Assets on hire Nil
(b) Repossessed Assets Nil
(iii) Other loans counting towards asset financing activities : €
(a) Loans where assets have been repossessed Nil
(b) Loans other than (a) above Nil
€ The Company has not disclosed amount outstanding under assets financing activities under note 4(iii) and included entire
loan amount outstanding under note 3 as RBI has merged Asset Financing Companies, Loan Companies and Investment
companies in to a new category “NBFC - Investment and Credit Company” vide its circular no. DNBR (PD) CC. No.
097/03.10.001/2018-19 dated February 22, 2019.
(Rs. in crores)
Amount
(5) Break-up of investments : $
outstanding
Current investments :
1. Quoted :
(i) Shares : (a) Equity Nil
(b) Preference Nil
(ii) Debenture and bonds Nil
(iii) Units of mutual funds Nil
(iv) Government securities Nil
(v) Others (Please specify) Nil
2. Unquoted :
(i) Shares: (a) Equity Nil
(b) Preference Nil
(ii) Debentures and bonds Nil
Long term investments :
1. Quoted :
(i) Shares : (a) Equity Nil
(b) Preference Nil
(iv) Government securities 1,824.46
2. Unquoted :
(i) Shares: (a) Equity 16.73
(b) Preference Nil
(iii) Units of mutual funds 3.02
(v) Others - Venture capital fund 1.04
- Pass through certificates (unquoted) 918.99
- Investment in subordinated debts 34.24
$ The Company has not disclosed the breakup of investment into Long term investment and current investment as the
classification is not required under Indian Accounting Standards issued by MCA for NBFCs.

(6) Borrower group-wise classification of assets, financed as in (3) and (4) above :
Please see note 2 below
(Rs. in crores)
Amount ( Net of provisions )
Category
Secured Unsecured
1. Related Parties **
(a) Subsidiaries Nil Nil
(b) Companies in the same group Nil Nil
(c) Other related parties Nil Nil
2. Other than related parties 105,073.08 3,428.63
(7) Investor group-wise classification of all investments (current and long term)
in shares and securities (both quoted and unquoted): $
Please see note 3 below
(Rs. in crores)
Market Value / Book Value (Net
Category Break up or fair of Provisions)
value or NAV*
1. Related Parties **
(a) Subsidiaries Nil Nil
(b) Companies in the same group 52.81 13.37
(c) Other related parties Nil Nil
2. Other than related parties 2,933.62 2,873.58
* Disclosure is made in respect of available information.
** As per Indian Accounting Standard issued by MCA (Please see note 3)
$ The Company has not disclosed the breakup of investment into Long term investment and current investment as the
classification is not required under Indian Accounting Standards issued by MCA.
(Rs. in crores)
(8) Other information
Sr. Amount
Particulars
No.
(i) Gross non-performing assets ¥
(a) Related parties Nil
(b) Other than related parties 9,177.08
(ii) Net non-performing assets ¥
(a) Related parties Nil
(b) Other than related parties 5,991.13
(iii) Assets acquired in satisfaction of debt Nil
¥ NPA accounts refer to stage 3 assets. Stage 3 Assets includes financial assets that have objective evidence of impairment at the
reporting date as defined under IND-AS. 90 Days Past Due is considered as default for classifying a financial instrument as credit
impaired.
Notes :
1. As defined in point xxvii of paragraph 3 of Chapter II of Master Direction - Non-Banking Financial Company - Systemically
Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
2. Provisioning norms shall be applicable as prescribed in Indian Accounting Standards by MCA.
3. All Indian Accounting Standards issued by MCA are applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of debt.

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
The Company does not have any subsidiary.
Part B: Associates and joint venture (Refer note 45)

Shriram Automall
Sr. No. Particulars - Associate India Limited
1 Latest Audited Balance Sheet Date March 31, 2020
2 Shares of associate held by the Company on the year end
No. 13,369,565
Amount of investment in associate (Rs. in crores) 13.37
Extent of holding % 44.56
3 Description of how there is significant influence By virtue of holdings
being 20% or more
4 Reason why the associate is not consolidated N.A.
5 Networth attributable to shareholding as per latest audited Balance Sheet (Rs. in crores) 54.16
6 Profit/Loss for the year (Rs. in crores)
i Considered in consolidation 10.43
ii Not Considered in consolidation 12.98
The Company does not have any joint venture.
For and on behalf of the Board of Directors of

S. Lakshminarayanan Umesh Revankar

Chairman Managing Director & CEO
DIN: 02808698 DIN: 00141189
New Delhi Mumbai
June 10, 2020 June 10, 2020

Mumbai Mumbai
June 10, 2020 June 10, 2020

Consolidated accounts
INDEPENDENT AUDITOR’S REPORT 205

BALANCE SHEET 212
STATEMENT OF PROFIT AND LOSS 213
STATEMENT OF CHANGES IN EQUITY 214
CASH FLOW STATEMENT 216
NOTES 218

INDEPENDENT AUDITOR’S REPORT
Consolidated Accounts
To the Members of for our opinion on the consolidated financial statements.

Shriram Transport Finance Company Limited Key Audit Matters
Key audit matters are those matters that, in our professional
Report on the Audit of the Consolidated
judgment, were of most significance in our audit of the
Financial Statements
consolidated financial statements of the current year. These
Opinion matters were addressed in the context of our audit of the
We have audited the accompanying consolidated financial consolidated financial statements as a whole, and in forming
statements of Shriram Transport Finance Company Limited our opinion thereon, and we do not provide a separate opinion
(hereinafter referred to as “the Holding Company”)and on these matters. We have determined the matters described
its associate comprising of the Consolidated Balance Sheet below to be the key audit matters to be communicated in our
as at March 31, 2020, the Consolidated Statement of Profit report.
and Loss (including Other Comprehensive Income), the Impairment Loss Allowance of loans and advances
Consolidated Statement of Changes in Equity and the
Impairment loss allowance of loans and advances
Consolidated Statement of Cash Flows for the year then
(“Impairment loss allowance”) is a Key Audit Matter as the
ended, and notes to the consolidated financial statements
Company has significant credit risk exposure considering the
including a summary of the significant accounting policies
large loan portfolio across a wide geographical range. The value
and other explanatory information (hereinafter referred to as
of loans and advances on the balance sheet is significant and
“the consolidated financial statements”).
there is a high degree of complexity and judgment involved
In our opinion and to the best of our information and in estimating individual and collective credit impairment
according to the explanations given to us and based on the provisions, write-offs against these loans and to additionally
consideration of reports of other auditor on separate financial determine the potential impact of unprecedented COVID 19
statements and on the other financial information of the pandemic on asset quality and provision of the Company. The
associate the aforesaid consolidated financial statements Company’s model to calculate expected credit loss (“ECL”) is
give the information required by the Companies Act, 2013 inherently complex and judgment is applied in determining
(“the Act”) in the manner so required and give a true and fair the correct construction of the three-stage impairment
view in conformity with the accounting principles generally model (“ECL Model”) including the selection and input of
accepted in India including the Indian Accounting Standards forward looking information. ECL provision calculation
(“Ind AS”) prescribed under section 133 of the Act, of the require the use of large volumes of data. The completeness
consolidated state of affairs of the Holding Company and and reliability of data can significantly impact accuracy of the
its Associate as at March 31, 2020, their consolidated profit modeled impairment provisions. The accuracy of data flows
(including other comprehensive income), their consolidated and the implementation of related controls are critical for the
changes in equity and their consolidated cash flows for the integrity of the estimated impairment provisions.
year ended on that date.
Audit Procedures included but were not limited to the
Basis for Opinion following:
We conducted our audit in accordance with the Standards We have started our audit procedures with understanding of
on Auditing (SAs) specified under section 143(10) of the the internal control environment related to Impairment loss
Act. Our responsibilities under those Standards are further allowance. Our procedures over internal controls focused on
described in the Auditor’s Responsibilities for the Audit of the recognition and measurement of impairment loss allowance.
Consolidated Financial Statements section of our report. We We assessed the design and tested the operating effectiveness
are independent of the Holding Company and its Associate of the selected key controls implemented by the Company.
in accordance with the Code of Ethics issued by the Institute
We also assessed whether the impairment methodology
of Chartered Accountants of India (“ICAI”) together with
used by the Company is in accordance with the assumptions
the ethical requirements that are relevant to our audit of the
and methodology approved by the Board of Directors of the
consolidated financial statements under the provisions of the
Company which is based on and in compliance with Ind AS
Act and Rules thereunder, and we have fulfilled our other
109 “Financial Instruments”. Particularly we assessed the
ethical responsibilities in accordance with these requirements
approach of the Company regarding definition of Default,
and the Code of Ethics. We believe that the audit evidence we
Probability of Default, Loss Given Default and incorporation
have obtained is sufficient and appropriate to provide a basis

(Contd.)
of forward-looking information for the calculation of ECL. Emphasis of Matter

For loans and advances which are assessed for impairment We draw attention to Note 62 to the consolidated financial
on a portfolio basis we performed particularly the following statements which describes the classification of accounts as
procedures: on March 31, 2020 with respect to the accounts which were
• We tested the reliability of key data inputs and related overdue but standard as on February 29, 2020 and to whom
management controls; moratorium benefit has been granted. The staging of those
• We checked the stage classification as at the balance sheet accounts under Ind AS as on March 31, 2020 is based on the
date as per the definition of Default of the Company; days past due status as on February 29, 2020 in accordance
with the Reserve Bank of India COVID-19 regulatory package.
• We validated the ECL Model and its calculation by
Further, the extent to which the COVID-19 pandemic will
involving our Information Technology Expert;
impact the Company’s financial performance is dependent
• We have also calculated the ECL provision manually for
on future developments, which are highly uncertain. Our
selected samples; and
opinion is not modified in respect of this matter.
• We have assessed the assumptions made by the
Other Information
Company in making accelerated provision considering
forward looking information and based on an event in a The Holding Company’s Board of Directors is responsible
particular geographical range. for the other information. The other information comprises
• We have reviewed the process of the Company to grant the information included in the Holding Company’s
moratorium to the borrowers as per the Regulatory Management Discussion & Analysis, Director’s Report
Package announced by the Reserve Bank of India and Corporate Governance Report, but does not include
(RBI). Further, we have relied on the assumption of the the standalone financial statements, consolidated financial
management that there will be no significant increase statements and our auditor’s report thereon.
in the credit risk in the cases where moratorium is Our opinion on the consolidated financial statements does
given and that the staging based on the days past due not cover the other information and we do not express any
(DPD) will be considered as per the RBI COVID-19 form of assurance conclusion thereon.
Regulatory Package. We have tested on samples basis In connection with our audit of the consolidated financial
the DPD freeze for cases where moratorium is provided statements, our responsibility is to read the other information
and not provided in accordance with RBI COVID-19 and, in doing so, consider whether the other information
Regulatory Package; is materially inconsistent with the consolidated financial
• With respect to additional provision made by the statements or our knowledge obtained in the audit or
Company on account of the impact of COVID-19 otherwise appears to be materially misstated. If, based on the
pandemic, we broadly reviewed the underlying work we have performed and the report of other auditor, we
assumptions and estimates used by the management conclude that there is a material misstatement of this other
for the same but as the extent of impact is dependent information, we are required to report that fact. We have
on future developments which are highly uncertain, nothing to report in this regard.
we have primarily relied on those assumptions and Responsibilities of Management and Those Charged with
estimates. These assumptions and estimates are a subject Governance for the Consolidated Financial Statements
matter of periodic review by the Company and.
The Holding Company’s Board of Directors is responsible
• We have checked the provision on Loan Assets as for the preparation and presentation of these consolidated
per IRACP norms as required under RBI circular financial statements in terms of the requirements of the Act
dated March 13, 2020. We have checked the DPD and that give a true and fair view of the consolidated financial
provision in accordance with the RBI regulations in position, consolidated financial performance (including
that regard further considering the Regulatory Packages other comprehensive income), consolidated changes in
issued by RBI dated March 27, 2020 and May 23, 2020 equity and consolidated cash flows of the Holding Company
and RBI circular dated April 17, 2020. and its Associate in accordance with the accounting
For loans and advances which are written off during the year principles generally accepted in India, including Ind AS
under audit, we read and understood the methodology and prescribed under section 133 of the Act, read with the
policy laid down and implemented by the Company in this Companies (Indian Accounting Standards) Rules, 2015,
regards along with its compliance on sample basis as amended. The respective Board of Directors of the

(Contd.) Consolidated Accounts
Holding Company and its Associate are responsible for that is sufficient and appropriate to provide a basis
maintenance of adequate accounting records in accordance for our opinion. The risk of not detecting a material
with the provisions of the Act for safeguarding the assets of misstatement resulting from fraud is higher than for
the Holding Company and its Associate and for preventing one resulting from error, as fraud may involve collusion,
and detecting frauds and other irregularities; the selection forgery, intentional omissions, misrepresentations, or
and application of appropriate accounting policies; making the override of internal control.
judgments and estimates that are reasonable and prudent; • Obtain an understanding of internal control relevant to
and design, implementation and maintenance of adequate the audit in order to design audit procedures that are
internal financial controls, that were operating effectively for appropriate in the circumstances. Under section 143(3)
ensuring the accuracy and completeness of the accounting (i) of the Act, we are also responsible for expressing
records, relevant to the preparation and presentation of our opinion on whether the Holding Company and its
the respective financial statements that give a true and fair Associate, which is a company incorporated in India
view and are free from material misstatement, whether due have adequate internal financial controls with reference
to fraud or error, which have been used for the purpose of to financial statements in place and the operating
preparation of the consolidated financial statements by the effectiveness of such controls.
Directors of the Holding Company, as aforesaid. • Evaluate the appropriateness of accounting policies
In preparing the consolidated financial statements, the used and the reasonableness of accounting estimates
respective Board of Directors of the Holding Company and and related disclosures made by management.
its Associate are responsible for assessing the ability of the • Conclude on the appropriateness of management’s use of
Holding Company and its Associate to continue as a going the going concern basis of accounting and, based on the
concern, disclosing, as applicable, matters related to going audit evidence obtained, whether a material uncertainty
concern and using the going concern basis of accounting exists related to events or conditions that may cast
unless management either intends to liquidate the Holding significant doubt on the ability of the Holding Company
Company and its Associate or to cease operations, or has no and its Associate to continue as a going concern. If we
realistic alternative but to do so. conclude that a material uncertainty exists, we are
The respective Board of Directors of the Holding Company required to draw attention in our auditor’s report to
and its Associate are responsible for overseeing the financial the related disclosures in the consolidated financial
reporting process of the Holding Company and its Associate. statements or, if such disclosures are inadequate, to
Auditor’s Responsibilities for the Audit of the modify our opinion. Our conclusions are based on the
Consolidated Financial Statements audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause
Our objectives are to obtain reasonable assurance about
the Holding Company and its Associate to cease to
whether the consolidated financial statements as a whole
continue as a going concern.
are free from material misstatement, whether due to fraud
• Evaluate the overall presentation, structure and content
or error, and to issue an auditor’s report that includes our
of the consolidated financial statements, including the
opinion. Reasonable assurance is a high level of assurance,
disclosures, and whether the consolidated financial
but is not a guarantee that an audit conducted in accordance
statements represent the underlying transactions and
with SAs will always detect a material misstatement when it
events in a manner that achieves fair presentation.
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they • Obtain sufficient appropriate audit evidence regarding
could reasonably be expected to influence the economic the financial information of the Holding Company and
decisions of users taken on the basis of these consolidated its Associate to express an opinion on the consolidated
financial statements. As part of an audit in accordance financial statements. We are responsible for the
with SAs, we exercise professional judgment and maintain direction, supervision and performance of the audit of
professional skepticism throughout the audit. We also: the financial statements of such entity included in the
consolidated financial statements of which we are the
• Identify and assess the risks of material misstatement
independent auditors. For the other entity included
of the consolidated financial statements, whether due
in the consolidated financial statements, which has
to fraud or error, design and perform audit procedures
been audited by other auditors, such other auditors
responsive to those risks, and obtain audit evidence

(Contd.)
remain responsible for the direction, supervision and Report on Other Legal and Regulatory Requirements
performance of the audits carried out by them. We As required by section 143(3) of the Act, based on our audit
remain solely responsible for our audit opinion. and on the consideration of report of the other auditor
We communicate with those charged with governance of on separate financial statements and the other financial
the Holding Company regarding, among other matters, the information of the associate, as noted in the Other Matters
planned scope and timing of the audit and significant audit section above we report, to the extent applicable, that:
findings, including any significant deficiencies in internal a. We have sought and obtained all the information and
control that we identify during our audit. explanations which to the best of our knowledge and
We also provide those charged with governance with a belief were necessary for the purposes of our audit of
statement that we have complied with relevant ethical the aforesaid consolidated financial statements;
requirements regarding independence, and to communicate b. In our opinion, proper books of account as required by
with them all relationships and other matters that may law relating to preparation of the aforesaid consolidated
reasonably be thought to bear on our independence, and financial statements have been kept so far as it appears
where applicable, related safeguards. from our examination of those books and the reports of
From the matters communicated with those charged with the other auditors;
governance, we determine those matters that were of c. The Consolidated Balance Sheet, the Consolidated
most significance in the audit of the consolidated financial Statement of Profit and Loss (including Other
statements of the current year and are therefore the key Comprehensive Income), the Consolidated Statement
audit matters. We describe these matters in our auditor’s of Changes in Equity and the Consolidated Statement
report unless law or regulation precludes public disclosure of Cash Flows dealt with by this report are in agreement
about the matter or when, in extremely rare circumstances, with the relevant books of account maintained for the
we determine that a matter should not be communicated in purpose of preparation of the consolidated financial
our report because the adverse consequences of doing so statements;
would reasonably be expected to outweigh the public interest d. In our opinion, the aforesaid consolidated financial
benefits of such communication. statements comply with the Ind AS specified under
Other Matters section 133 of the Act read with the Companies (Indian
(a) The consolidated financial statements include Holding Accounting Standards) Rules, 2015, as amended;
Company’s share of net profit (including other e. On the basis of the written representations received
comprehensive income) of Rs. 10.68 Crores for the year from the directors of the Holding Company as on March
ended March 31, 2020, as considered in the consolidated 31, 2020 taken on record by the Board of Directors of
financial statements, in respect of an Associate whose the Holding Company and the report of the statutory
financial statements has not been audited by us. auditor of its associate company incorporated in India,
These financial statements have been audited by other none of the directors of the Holding Company and its
auditor whose report have been furnished to us by Associate, incorporated in India, is disqualified as on
the management and our opinion on the consolidated March 31, 2020 from being appointed as a director in
financial statements, in so far as it relates to the amounts terms of section 164(2) of the Act;
and disclosures included in respect of the Associate, and f. With respect to the adequacy of the internal financial
our report in terms of section 143(3) of the Act, in so far controls with reference to financial statements of
as it relates to the aforesaid Associate, is based solely on the Holding Company and its Associate, which is
the reports of the other auditor. incorporated in India and the operating effectiveness
Our opinion on the consolidated financial statements and of such controls, we refer our separate report in
our report on Other Legal and Regulatory Requirements “Annexure”;
below, is not modified in respect of the above matters with g. With respect to the other matters to be included in the
respect to our reliance on the work done and the report of Auditor’s Report in accordance with the requirements
the other auditor. of section 197(16) of the Act:

(Contd.) Consolidated Accounts
In our opinion and to the best of our information and financial position of the Holding Company and
according to the explanations given to us by the Holding its Associate – Refer Note 49 to the consolidated
Company and the report of the statutory auditor of its financial statements;
Associate incorporated in India, the remuneration paid/ (ii) The Holding Company and its Associate has made
provided by the Holding Company and its Associate to provision, as required under the applicable law
its directors during the year is in accordance with the or accounting standards, for material foreseeable
provisions of section 197 of the Act; losses, if any, on long-term contracts including
h. With respect to the other matters to be included in derivative contracts – Refer Note 10 to the
the Auditor’s Report in accordance with Rule 11 of consolidated financial statements.
the Companies (Audit and Auditors) Rules, 2014, in (iii) There has been no delay in transferring amounts,
our opinion and to the best of our information and required to be transferred, to the Investor
according to the explanations given to us: Education and Protection Fund by the Company.
(i) The consolidated financial statements disclose the
impact of pending litigations on the consolidated
Partner Partner
UDIN: 20034828AAAACM2363 UDIN:20064225AAAAAY4934

ANNEXURE
to the independent auditor’s report
[Referred to in paragraph f under ‘Report on Other Legal and Our audit involves performing procedures to obtain audit
Regulatory Requirements’ section in our Independent Auditor’s evidence about the adequacy of the internal financial
Report of even date to the members of Shriram Transport controls with reference to financial statements and their
Finance Company Limited on the consolidated financial operating effectiveness. Our audit of internal financial
statements for the year ended March 31, 2020] controls with reference to financial statements included
Report on the Internal Financial Controls with reference obtaining an understanding of internal financial controls
to Financial Statements under clause (i) of sub-section 3 of with reference to financial statements, assessing the risk that
section 143 of the Companies Act, 2013 (“the Act”) a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based
In conjunction with our audit of the consolidated financial
on the assessed risk. The procedures selected depend on the
statements of Shriram Transport Finance Company Limited
auditor’s judgement, including the assessment of the risks of
(“Holding Company”) as of and for the year ended March
material misstatement of the financial statements, whether
31, 2020, we have audited the internal financial controls with
due to fraud or error.
reference to financial statements of the Holding Company
and its Associate, which is a company incorporated in India, We believe that the audit evidence we have obtained and the
as of that date. audit evidence obtained by the other auditor, in terms of their
report referred to in the Other Matters paragraph below, is
Management’s Responsibility for Internal Financial Controls
sufficient and appropriate to provide a basis for our audit
The respective Board of Directors of the Holding Company
opinion on the internal financial controls with reference to
and its Associate, which is a company incorporated in
financial statements of Holding Company and its Associate.
India, are responsible for establishing and maintaining
Meaning of Internal Financial Controls with reference to
internal financial controls based on the internal control with
Financial Statements
reference to financial statements criteria established by the
Holding Company considering the essential components A company’s internal financial control with reference
of internal control stated in the Guidance Note on Audit to financial statements is a process designed to provide
of Internal Financial Controls Over Financial Reporting reasonable assurance regarding the reliability of financial
(the “Guidance Note”) issued by the Institute of Chartered reporting and the preparation of financial statements for
Accountants of India (“ICAI”). These responsibilities include external purposes in accordance with generally accepted
the design, implementation and maintenance of adequate accounting principles. A company’s internal financial
internal financial controls that were operating effectively for control with reference to financial statements includes those
ensuring the orderly and efficient conduct of its business, policies and procedures that (1) pertain to the maintenance
including adherence to the respective company’s policies, of records that, in reasonable detail, accurately and fairly
the safeguarding of its assets, the prevention and detection reflect the transactions and dispositions of the assets of the
of frauds and errors, the accuracy and completeness of the company; (2) provide reasonable assurance that transactions
accounting records, and the timely preparation of reliable are recorded as necessary to permit preparation of financial
financial information, as required under the Act. statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company
Auditor’s Responsibility
are being made only in accordance with authorisations
Our responsibility is to express an opinion on the internal
of management and directors of the company; and (3)
financial controls with reference to financial statements of
provide reasonable assurance regarding prevention or timely
Holding Company and its Associate, which is a company
detection of unauthorised acquisition, use, or disposition of
incorporated in India, based on our audit. We conducted
the company’s assets that could have a material effect on the
our audit in accordance with the Guidance Note and the
financial statements.
Standards on Auditing specified under section 143(10)
Inherent Limitations of Internal Financial Controls with
of the Act, to the extent applicable to an audit of internal
reference to Financial Statements
financial controls, both issued by the ICAI. Those Standards
and the Guidance Note require that we comply with ethical Because of the inherent limitations of internal financial
requirements and plan and perform the audit to obtain controls with reference to financial statements, including the
reasonable assurance about whether adequate internal possibility of collusion or improper management override
financial controls with reference to financial statements was of controls, material misstatements due to error or fraud
established and maintained and if such controls operated may occur and not be detected. Also, projections of any
effectively in all material respects. evaluation of the internal financial controls with reference to

ANNEXURE
to the independent auditor’s report (Contd.) Consolidated Accounts
financial statements to future periods are subject to the risk financial controls with reference to financial statements
that the internal financial control with reference to financial were operating effectively as at March 31, 2020, based on
statements may become inadequate because of changes in the internal control with reference to financial statements
conditions, or that the degree of compliance with the policies criteria established by the respective companies considering
or procedures may deteriorate. the essential components of internal control stated in the
Opinion Guidance Note issued by the ICAI.
In our opinion and to the best of our information and Other Matters
according to the explanations given to us and based on Our aforesaid report under section 143(3)(i) of the Act on
consideration of reporting of other auditor as mentioned in the adequacy and operating effectiveness of the internal
Other Matters paragraph below, the Holding Company and financial controls with reference to financial statements in so
its Associate, which is a company incorporated in India, have, far as it relates to one Associate company, which is a company
in all material respects, adequate internal financial controls incorporated in India, is based on the corresponding report
with reference to financial statements and such internal of the auditor of such company incorporated in India.
Partner Partner
UDIN: 20034828AAAACM2363 UDIN:20064225AAAAAY4934

Consolidated Balance Sheet
as at March 31, 2020
(Rs. in crores)
As at As at
I ASSETS
1 Financial assets
Cash and cash equivalents 8 3,088.99 1,029.14
Bank balance other than above 9 4,225.93 2,952.33
Derivative financial instruments 10 758.73 21.72
Receivables 11
(I) Trade receivables 10.50 8.48
(II) Other receivables 5.64 19.94
Loans 12 102,231.63 96,751.49
Investments 13 2,935.63 4,125.54
Other financial assets 14 45.15 36.88
2 Non-financial Assets
Current tax assets (net) 15 249.10 106.58
Deferred tax assets (net) 43 62.50 75.70
Investment property 16 2.03 2.06
Property, plant and equipment 17 149.88 143.46
Right-of-use assets 18 327.84 -
Other intangible assets 19 2.67 1.97
Other non-financial assets 20 169.57 143.66
Total assets 114,265.79 105,418.95
II LIABILITIES AND EQUITY
Liabilities
1 Financial liabilities
Derivative financial instruments 10 - 83.42
Payables
(I) Trade payables 21
(i) total outstanding dues of micro enterprises and small enterprises 0.40 -
(ii) total outstanding dues of creditors other than micro enterprises and small 143.44 133.46
enterprises
(II) Other payables
(ii) t otal outstanding dues of creditors other than micro enterprises and small
1.13 2.72
enterprises
Debt securities 22 34,266.96 34,181.76
Borrowings (other than debt securities) 23 42,474.60 37,189.30
Deposits 24 11,960.12 10,341.46
Subordinated liabilities 25 5,670.07 6,201.88
Other financial liabilities 26 912.32 1,016.48
Lease Liabilities 18 362.81 -
2 Non-financial liabilities
Current tax liabilities (net) 27 102.02 102.97
Provisions 28 146.33 133.26
Other non-financial liabilities 29 83.28 69.49
Total liabilities 96,123.48 89,456.20
3 Equity
Equity share capital 30 226.88 226.90
Other equity 31 17,915.43 15,735.85
Total equity 18,142.31 15,962.75
Total liabilities and equity 114,265.79 105,418.95
See accompanying notes forming part of the consolidated financial statements.


Mumbai Mumbai
June 10, 2020 June 10, 2020

Consolidated Statement of Profit and Loss
for the year ended March 31, 2020 Consolidated Accounts
(Rs. in crores)
Revenue from operations
(i) Interest income 32 16,267.46 15,335.69
(ii) Dividend income 0.19 4.99
(iii) Rental income 0.22 0.22
(iv) Fee and commission income 33 194.97 126.60
(v) Net gain on fair value changes 34 - -
(vi) Other operating income 35 99.52 61.65
(I) Total Revenue from operations 16,562.36 15,529.15
(II) Other income 36 20.27 27.51
(III) Total Income (I + II) 16,582.63 15,556.66
Expenses
(i) Finance cost 37 8,270.26 7,511.26
(ii) Fee and commission expense 38 56.88 62.19
(iii) Net loss on fair value changes 34 6.75 2.58
(iv) Impairment of financial instruments 39 2,794.88 2,382.26
(v) Employee benefits expenses 40 1,010.82 883.06
(vi) Depreciation, amortisation and impairment 41 141.05 42.97
(vii) Other expenses 42 863.32 894.07
(IV) Total Expenses 13,143.96 11,778.39
(V) Profit before exceptional items and tax (III - IV) 3,438.67 3,778.27
(VI) Exceptional items - -
(VII)Profit before tax (V+ VI) 3,438.67 3,778.27
(VIII)Tax Expense:
(1) Current tax 43 921.20 1,346.37
(2) Deferred tax 43 14.79 (22.27)
(3) Tax adjustment for earlier years 0.84 (109.82)
(IX) Profit for the year from continuing operations (VII-VIII) 2,501.84 2,563.99
(X) Share of profit of associate 10.43 11.69
(XI) Profit for the year ( IX + X) 2,512.27 2,575.68
(XII) Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss
Remeasurement gain/(loss) on defined benefit plan (6.33) (3.56)
Share of other comprehensive income from associates 0.34 (0.14)
(ii) Income tax relating to items that will not be reclassified to profit or loss 1.59 1.24
Tax on share of other comprehensive income from associates (0.09) 0.04
Subtotal (A) (4.49) (2.42)
B (i) Items that will be reclassified to profit or loss - -
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Subtotal (B) - -
Other Comprehensive Income (A + B) (4.49) (2.42)
(XIII)Total Comprehensive Income for the year (XI + XII) 2,507.78 2,573.26
(XIV) Earnings per equity share
Basic (Rs.) 44 110.73 113.52
Diluted (Rs.) 44 110.73 113.52


Mumbai Mumbai
June 10, 2020 June 10, 2020

A. Equity share capital
214
Number of shares (Rs. in crores)
Particulars
As at March 31, 2018 226,882,736 226.90
Changes in Equity share capital during the year - -
As at March 31, 2019 226,882,736 226.90
Changes in Equity share capital during the year - (0.02)
As at March 31, 2020 226,882,736 226.88
B. Other equity

(Rs. in crores)
Statutory Capital Securities Debenture Capital General Retained comprehensive
Particulars benefits
Consolidated Statement of

Transferred to/(from) 514.00 - - 158.03 - 350.44 (1,022.47) - -
Dividends (Interim and final) - - - - - - (249.58) - (249.58)

Tax on dividend (Interim and final) - - - - - - (51.30) - (51.30)
Changes in Equity
B. Other equity (Contd.)
(Rs. in crores)
Statutory Capital Securities Debenture Capital General Retained comprehensive
Particulars benefits
Consolidated Statement of
Transferred to/(from) 500.38 - - 235.79 - 250.19 (986.36) - -

Transfer from share forfeiture account - 0.02 - - - - - - 0.02
Dividends (Interim and final) - - - - - - (272.26) - (272.26)
Tax on dividend (Interim and final) - - - - - - (55.96) - (55.96)


Changes in Equity

Mumbai Mumbai
June 10, 2020 June 10, 2020

215
Consolidated Cash Flow Statement
(Rs. in crores)
A. Cash flow from Operating activities
Profit before tax 3,438.67 3,778.27
Depreciation, amortisation and impairment 141.05 42.97
Interest on income tax refund (5.80) (6.66)
Loss/(profit) on sale of fixed assets (net) (1.17) 0.51
Impairment on loans 2,748.87 2,450.51
Impairment on investments 42.22 (0.06)
Impairment on undrawn loan commitment 4.39 6.71
Impairment on other assets (0.60) (74.90)
Net (gain)/loss on fair value changes on investment 0.87 (0.52)
Net (gain)/loss on fair value changes on derivatives 5.88 3.10
Operating profit before working capital changes 6,374.50 6,199.93
Movements in Working capital:
Decrease/(increase) in loans (8,229.03) (8,456.35)
(Increase)/decrease in investments 1,157.38 (1,657.13)
Decrease/(increase) in receivables 12.28 (10.98)
Decrease/(increase) in bank deposits (1,273.60) (368.49)
Decrease/(increase) in other financial assets (7.67) 75.49
Decrease/(increase) in other non-financial assets (28.09) (3.43)
Increase/(decrease) in payables 10.38 (86.31)
Increase/(decrease) in other financial liabilities (104.04) 126.22
Increase/(decrease) in non-financial liabilities 13.79 (3.83)
Increase/(decrease) other provision 7.69 2.31
Cash generated from operations (2,066.41) (4,182.57)
Direct taxes paid (net of refunds) (1,065.03) (1,352.41)
Net cash flows from/(used in) operating activities (A) (3,131.44) (5,534.98)
B. Cash flow from Investing activities
Purchase of property, plant and equipment and intangible assets (57.80) (77.97)
Proceeds from sale of property, plant and equipment and intangible assets 2.60 1.83
Net cash flows from/(used in) investing activities (B) (55.20) (76.14)
C. Cash flow from financing activities
Derivatives (826.31) 64.46
Amount received from deposits received (including ICDs) 4,433.61 5,006.10
Repayment of deposits (2,940.82) (3,315.19)
Amount received from debt securities 13,085.18 9,057.53
Repayment of debt securities (9,557.89) (6,562.70)
Amount received from subordinated debts - 2,360.00
Repayment of subordinated debts (449.01) (864.56)
Amount received from borrowings other than debt securities 42,569.54 56,824.89
Repayment of borrowings other than debt securities (40,683.27) (56,722.52)
Payment of lease liabilities (56.20) -
Dividend paid (272.38) (247.16)
Tax on dividend (55.96) (51.30)

Consolidated Cash Flow Statement
for the year ended March 31, 2020 (Contd.) Consolidated Accounts
(Rs. in crores)
Net cash flows from financing activities (C ) 5,246.49 5,549.55
Net increase in cash and cash equivalents (A+B+C) 2,059.85 (61.57)
Cash and cash equivalents at the beginning of the year 1,029.14 1,090.71
Cash and cash equivalents at the end of the year 3,088.99 1,029.14
Net cash provided by (used in) operating activities includes
Interest received on loans 14,487.74 14,842.91
Interest paid (5,923.07) (5,813.03)
Dividend received 0.19 4.99
(Rs. in crores)
As at As at
Components of cash and cash equivalents March 31, 2020 March 31, 2019
Cash and cash equivalents at the end of the year
i) Cash on hand 41.24 123.47
ii) Cheques on hand 2.38 18.18
iii) Balances with banks (of the nature of cash and cash equivalents) 1,810.59 761.67
iv) Bank deposit with original maturity less than three months 1,234.78 125.82
Total 3,088.99 1,029.14



Mumbai Mumbai
June 10, 2020 June 10, 2020

Notes forming part of the Consolidated financial
statements for the year ended March 31, 2020
1 Basis of preparation
The Consolidated financial statements relates to M/s. Shriram Transport Finance Company Limited (the “ Company”) and its
associate. The Consolidated financial statements of the Company and its associate have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from
time to time). The Consolidated financial statements have been prepared under the historical cost convention, as modified by
the application of fair value measurements required or allowed by relevant Accounting Standards. Accounting policies have been
consistently applied to all periods presented, unless otherwise stated.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The preparation of financial statements requires the use of certain critical accounting estimates and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses and the disclosed amount of contingent liabilities. Areas involving
a higher degree of judgement or complexity, or areas where assumptions are significant to the Company are discussed in Note 7-
Significant accounting judgements, estimates and assumptions.
The Consolidated financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest crore, except
when otherwise indicated.
2 Basis of consolidation
(i) The financial statements of the associate company used in the consolidation are drawn up to the same reporting date as of the
Company i.e. year ended March 31, 2020 and are prepared based on the accounting policies consistent with those used by the
Company.
(ii) The financial statements of the Company and its associate have been prepared in accordance with the Ind AS 110-
‘Consolidated Financial Statements’ as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and
notified under Section 133 of the Companies Act, 2013 and the other relevant provisions of the Act.
(iii) The consolidated financial statements have been prepared on the following basis:
a) Investment made by the Company in an associate company is accounted under the equity method, in accordance with
the Indian Accounting Standard 28 on ‘Investments in Associates and Joint Ventures’.
b) The policies of the associate company are consistent with those of the Company.
(iv) The associate company considered in the consolidated financial statements are as below (refer note 45):
Name of the associate company Country of Share of ownership Share of ownership

incorporation interest as at March interest as at March
31, 2020 31, 2019
Shriram Automall India Limited (SAMIL) India 44.56% 44.56%
3 Presentation of financial statement

The Consolidated financial statements of the Company and its associate are presented as per Schedule III (Division III) of the
Companies Act, 2013 applicable to NBFCs, as notified by the Ministry of Corporate Affairs (MCA). Financial assets and financial
liabilities are generally reported on a gross basis except when, there is an unconditional legally enforceable right to offset the
recognised amounts without being contingent on a future event and the parties intend to settle on a net basis in the following
circumstances:
i. The normal course of business
ii. The event of default
iii. The event of insolvency or bankruptcy of the Company and its associate and/or its counterparties
Derivative assets and liabilities with master netting arrangements (e.g. International Swaps and Derivative Association
Arrangements) are presented net if all the above criteria are met.
4 Statement of compliance
These Consolidated financial statements of the Company and its associate have been prepared in accordance with Indian
Accounting Standards as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section
133 of the Companies Act, 2013 and the other relevant provisions of the Act.
Except for the changes below, the Company and its associate has consistently applied accounting policies to all periods.
The Company has adopted Ind AS 116 ‘Leases’ with the date of initial application being April 01, 2019. Ind AS 116 replaces Ind AS
17 – Leases and related interpretation and guidance. Refer note 6.3(iii) for the Company’s policy on leases.

Notes forming part of the Consolidated financial statements
5 New Accounting Standards issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such
notification which would have been applicable from April 01, 2020.
6 Significant accounting policies
6.1 Financial instruments
(i) Classification of financial instruments
The Company classifies its financial assets into the following measurement categories:
1. Financial assets to be measured at amortised cost
2. Financial assets to be measured at fair value through other comprehensive income
3. Financial assets to be measured at fair value through profit or loss account
The classification depends on the contractual terms of the cashflows of the financial assets and the Company’s business
model for managing financial assets which are explained below:
Business model assessment
The Company determines its business model at the level that best reflects how it manages groups of financial assets to achieve
its business objective.
The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated
portfolios and is based on observable factors such as:
 How the performance of the business model and the financial assets held within that business model are evaluated and
reported to the entity’s key management personnel
 The risks that affect the performance of the business model (and the financial assets held within that business model)
and the way those risks are managed
 How managers of the business are compensated (for example, whether the compensation is based on the fair value of
the assets managed or on the contractual cash flows collected)
 The expected frequency, value and timing of sales are also important aspects of the Company’s assessment. The business
model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios
into account. If cash flows after initial recognition are realised in a way that is different from the Company’s original
expectations, the Company does not change the classification of the remaining financial assets held in that business
model, but incorporates such information when assessing newly originated or newly purchased financial assets going
forward.
The Solely Payments of Principal and Interest (SPPI) test
As a second step of its classification process the Company assesses the contractual terms of financial assets to identify whether
they meet the SPPI test.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change
over the life of the financial asset (for example, if there are repayments of principal or amortisation of the premium/discount).
In making this assessment, the Company considers whether the contractual cash flows are consistent with a basic lending
arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a
profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified and measured at fair
value through profit or loss.
The Company classifies its financial liabilities at amortised costs unless it has designated liabilities at fair value through the
profit and loss account or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.
(ii) Financial assets measured at amortised cost
Debt instruments
These financial assets comprise bank balances, Loans, Trade receivables, investments and other financial assets.
Debt instruments are measured at amortised cost where they have:
b) are held within a business model whose objective is achieved by holding to collect contractual cash flows.
measured at amortised cost.

statements for the year ended March 31, 2020 (Contd.)
(iii) Financial assets measured at fair value through other comprehensive income
Debt instruments
Investments in debt instruments are measured at fair value through other comprehensive income where they have:
b) are held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets.
measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income
within a separate component of equity. Impairment losses or reversals, interest revenue and foreign exchange gains
and losses are recognised in profit and loss. Upon disposal, the cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to the statement of profit and loss. As at the reporting date, the
Company does not have any financial instruments measured at fair value through other comprehensive income.
Equity instruments
Investment in equity instruments that are neither held for trading nor contingent consideration recognised by the
Company in a business combination to which Ind AS 103 ‘Business Combination’ applies, are measured at fair value
through other comprehensive income, where an irrevocable election has been made by management and when such
instruments meet the definition of Equity under Ind AS 32 Financial Instruments: Presentation. Such classification is
determined on an instrument-by-instrument basis. As at reporting date, there are no equity instruments measured at
FVOCI.
Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. Dividends on
such investments are recognised in profit or loss.
(iv) Items at fair value through profit or loss
Items at fair value through profit or loss comprise:
• Investments (including equity shares) held for trading;
• Items specifically designated as fair value through profit or loss on initial recognition; and
• d
ebt instruments with contractual terms that do not represent solely payments of principal and interest. As at the
reporting date, the Company does not have any financial instruments measured at fair value through profit or loss.
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with transaction costs
recognised in the statement of profit and loss as incurred. Subsequently, they are measured at fair value and any gains or
losses are recognised in the statement of profit and loss as they arise.
Financial instruments held for trading
A financial instrument is classified as held for trading if it is acquired or incurred principally for selling or repurchasing in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking, or it is a derivative not in a qualifying hedge relationship. Trading derivatives and trading securities
are classified as held for trading and recognised at fair value.
Financial instruments designated as measured at fair value through profit or loss
Upon initial recognition, financial instruments may be designated as measured at fair value through profit or loss. A financial
asset may only be designated at fair value through profit or loss if doing so eliminates or significantly reduces measurement
or recognition inconsistencies (i.e. eliminates an accounting mismatch) that would otherwise arise from measuring financial
assets or liabilities on a different basis. As at the reporting date, the Company does not have any financial instruments
designated as measured at fair value through profit or loss.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly reduces an accounting
mismatch or:
• if a host contract contains one or more embedded derivatives; or
• if financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with
a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value attributable to changes
in the Company’s own credit quality is calculated by determining the changes in credit spreads above observable market
interest rates and is presented separately in other comprehensive income. As at the reporting date, the Company has not

designated any financial instruments as measured at fair value through profit or loss.
(v) Derivatives
A derivative is a financial instrument or other contract with all three of the following characteristics:
 Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price,
foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided that, in the
case of a non-financial variable, it is not specific to a party to the contract (i.e., the ‘underlying’).
 It requires no initial net investment or an initial net investment that is smaller than would be required for other
types of contracts expected to have a similar response to changes in market factors.
 It is settled at a future date.
 The Company enters into derivative transactions with various counterparties to hedge its foreign currency
risks and interest rate risks. Derivative transaction consists of hedging of foreign exchange transactions, which
includes interest rate and currency swaps, interest rate options and forwards. The Company undertakes derivative
transactions for hedging on-balance sheet liabilities. Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently measured to their fair value at the end of each reporting
period. Such derivative instruments are presented as assets in case of a fair value gain and as liabilities in case of
fair value loss. Changes in the fair value of derivatives are included in net gain on fair value changes.
(vi) Embedded Derivatives
An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with
the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the Company does not
separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the entire
hybrid contract.
(vii) Debt securities and other borrowed funds
After initial measurement, debt issued and other borrowed funds are subsequently measured at amortised cost.
Amortised cost is calculated by taking into account any discount or premium on issue funds, and transaction costs
that are an integral part of the Effective Interest Rate (EIR).
(viii) Financial guarantees
Financial guarantees are initially recognised in the financial statements at fair value, being the premium received.
Subsequent to initial recognition, the Company’s liability under each guarantee is measured at the higher of the
amount initially recognised less cumulative amortisation recognised in the statement of profit and loss.
 The premium is recognised in the statement of profit and loss on a straight-line basis over the life of the guarantee.
(ix) Reclassification of financial assets and liabilities
The Company does not reclassify its financial assets subsequent to their initial recognition. Financial liabilities are
never reclassified. The Company did not reclassify any of its financial assets or liabilities in 2018-19 and until the year
ended March 31, 2020.
(x) Recognition and Derecognition of financial assets and liabilities
Recognition
a) Loans and Advances are initially recognised when the funds are transferred to the customers’ account or delivery
of assets by the dealer, whichever is earlier.
b) Investments are initially recognised on the settlement date.
c) Debt securities, deposits and borrowings are initially recognised when funds reach the Company.
d) Other Financial assets and liabilities are initially recognised on the trade date, i.e., the date that the Company
becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or
sales of financial assets that require delivery of assets within the time frame generally established by regulation or
convention in the market place.
Derecognition of financial assets due to substantial modification of terms and conditions:
The Company derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been
renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognised as a derecognition
gain or loss, to the extent that an impairment loss has not already been recorded. The newly recognised loans are
classified as Stage 1 for ECL measurement purposes, unless the new loan is deemed to be Purchased or Originated as
Credit Impaired (POCI).

If the modification does not result in cash flows that are substantially different, the modification does not result in
derecognition. Based on the change in cash flows discounted at the original EIR, the Company records a modification
gain or loss, to the extent that an impairment loss has not already been recorded.
Derecognition of financial assets other than due to substantial modification
a) Financial assets:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is derecognised when the rights to receive cash flows from the financial asset have expired. The Company
also derecognises the financial asset if it has both transferred the financial asset and the transfer qualifies for
derecognition.
The Company has transferred the financial asset if, and only if, either:
i. The Company has transferred its contractual rights to receive cash flows from the financial asset, or
ii. It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a ‘pass–through’ arrangement.
Pass-through arrangements are transactions whereby the Company retains the contractual rights to receive the
cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows
to one or more entities (the ‘eventual recipients’), when all of the following three conditions are met:
i. The Company has no obligation to pay amounts to the eventual recipients unless it has collected equivalent
amounts from the original asset, excluding short-term advances with the right to full recovery of the
amount lent plus accrued interest at market rates.
ii. The Company cannot sell or pledge the original asset other than as security to the eventual recipients.
iii. The Company has to remit any cash flows it collects on behalf of the eventual recipients without material
delay. In addition, the Company is not entitled to reinvest such cash flows, except for investments in cash
or cash equivalents including interest earned, during the period between the collection date and the date
of required remittance to the eventual recipients.
A transfer only qualifies for derecognition if either:
i. The Company has transferred substantially all the risks and rewards of the asset, or
ii. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
The Company considers control to be transferred if and only if, the transferee has the practical ability to sell the
asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing
additional restrictions on the transfer.
When the Company has neither transferred nor retained substantially all the risks and rewards and has retained
control of the asset, the asset continues to be recognised only to the extent of the Company’s continuing involvement,
in which case, the Company also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Company has retained.
b)
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and the recognition of a new liability. The difference between the carrying value of the original
financial liability and the consideration paid is recognised in profit or loss. As at the reporting date, the Company does
not have any financial liabilities which have been derecognised.
(xi) Impairment of financial assets
Overview of the ECL principles
The Company records allowance for expected credit losses for all loans, other debt financial assets not held at FVTPL,
together with financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments
are not subject to impairment under Ind AS 109.
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit
loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is
based on the 12 months’ expected credit loss .
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12-month ECL is the portion of Lifetime ECL that represent the ECLs that result from
default events on a financial instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis, depending
on the nature of the underlying portfolio of financial instruments. The Company has grouped its loan portfolio into
Business Loans, Secured loans for new vehicles, Secured loans for used vehicles and Equipment Finance Loans
The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a
financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the
risk of default occurring over the remaining life of the financial instrument. The Company does the assessment of
significant increase in credit risk at a borrower level. If a borrower has various facilities having different past due status,
then the highest days past due (DPD) is considered to be applicable for all the facilities of that borrower.
Based on the above, the Company categorises its loans into Stage 1, Stage 2 and Stage 3 as described below:
Stage 1
All exposures where there has not been a significant increase in credit risk since initial recognition or that has low
credit risk at the reporting date and that are not credit impaired upon origination are classified under this stage. The
Company classifies all standard advances and advances upto 30 days default under this category. Stage 1 loans also
include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.
Stage 2
All exposures where there has been a significant increase in credit risk since initial recognition but are not credit
impaired are classified under this stage. 30 Days Past Due is considered as significant increase in credit risk.
Stage 3
All exposures assessed as credit impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that asset have occurred are classified in this stage. For exposures that have become credit impaired,
a lifetime ECL is recognised and interest revenue is calculated by applying the effective interest rate to the amortised
cost (net of provision) rather than the gross carrying amount. 90 Days Past Due is considered as default for classifying
a financial instrument as credit impaired. If an event (for e.g.. any natural calamity) warrants a provision higher than as
mandated under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.
Credit-impaired financial assets:
At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt financial
assets carried at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
a) Significant financial difficulty of the borrower or issuer;
b) A breach of contract such as a default or past due event;
c) The restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;
d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
e) The disappearance of an active market for a security because of financial difficulties.
ECL on Investment in Government securities:
The Company has invested in Government of India loans. Investment in Government securities are classified under
stage 1. No ECL has been applied on these investments as there is no history of delay in servicing of interest/repayments.
The Company does not expect any delay in interest/redemption servicing in future.
Simplified approach for trade/other receivables and contract assets
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade/other receivables that
do not contain a significant financing component. The application of simplified approach does not require the Company
to track changes in credit risk. It recognises impairment loss allowance based on lifetime ECLs at each reporting date,
right from its initial recognition. At every reporting date, the historical observed default rates are updated for changes in
the forward-looking estimates. For trade receivables that contain a significant financing component a general approach
is followed.
Financial guarantee contracts
The Company’s liability under financial guarantee is measured at the higher of the amount initially recognised less
cumulative amortisation recognised in the statement of profit and loss, and the ECL provision. For this purpose, the
Company estimates ECLs by applying a credit conversion factor.

ECL on Debt instruments measured at fair value through OCI

The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the
balance sheet, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were
measured at amortised cost is recognised in OCI as an accumulated impairment amount, with a corresponding charge
to profit or loss. The accumulated loss recognised in OCI is recycled to the profit and loss upon derecognition of the
assets. As at the reporting date, the Company does not have any debt instruments measured at fair value through OCI.
The mechanics of ECL:
The Company calculates ECLs based on probability-weighted scenarios to measure the expected cash shortfalls,
discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due to the
Company in accordance with the contract and the cash flows that the Company expects to receive.
The mechanics of the ECL calculations are outlined below and the key elements are, as follows:
Probability of Default (PD) - 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. The concept of PD is further explained in Note 53.
Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure at a future default date. The
concept of EAD is further explained in Note 53
Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising in the case where a default occurs
at a given time. It is based on the difference between the contractual cash flows due and those that the Company would
expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the EAD. The
concept of LGD is further explained in Note 53.
Forward looking information
While estimating the expected credit losses, the Company reviews macro-economic developments occurring in the
economy and market it operates in. On a periodic basis, the Company analyses if there is any relationship between key
economic trends like GDP, unemployment rates, benchmark rates set by the Reserve Bank of India, inflation etc. with
the estimate of PD, LGD determined by the Company based on its internal data. While the internal estimates of PD,
LGD rates by the Company may not be always reflective of such relationships, temporary overlays, if any, are embedded
in the methodology to reflect such macro-economic trends reasonably.
Refer note 62 for impact of COVID and macro-economic factors on PD and LGD estimation.
Collateral Valuation
To mitigate its credit risks on financial assets, the Company seeks to use collateral, wherever possible. The collateral
comes in various forms, such as movable and immovable assets, guarantees, etc. However, the fair value of collateral
affects the calculation of ECLs. To the extent possible, the Company uses active market data for valuing financial assets
held as collateral. Other financial assets which do not have readily determinable market values are valued using models.
Non-financial collateral, such as vehicles, is valued based on data provided by third parties or management judgements.
Collateral repossessed
In its normal course of business whenever default occurs, the Company may take possession of properties or other
assets in its retail portfolio and generally disposes such assets through auction, to settle outstanding debt. Any surplus
funds are returned to the customers/obligors. As a result of this practice, assets under legal repossession processes are
not recorded on the balance sheet.
(xii) Write-offs
The Company reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof. This is generally the case when the Company determines
that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the
amounts subjected to write-offs. Any subsequent recoveries against such loans are credited to the statement of profit
and loss.
(xiii) Determination of fair value
On initial recognition, all the financial instruments are measured at fair value. For subsequent measurement, the
Company measures certain categories of financial instruments (as explained in note 6.1(iii) to 6.1(vi)) at fair value on
each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques, as summarised below:
Level 1 financial instruments - Those where the inputs used in the valuation are unadjusted quoted prices from active
markets for identical assets or liabilities that the Company has access to at the measurement date. The Company
considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the
identical assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet date.
Level 2 financial instruments - Those where the inputs that are used for valuation and are significant, are derived from
directly or indirectly observable market data available over the entire period of the instrument’s life. Such inputs include
quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets
and observable inputs other than quoted prices such as interest rates and yield curves, implied volatilities, and credit
spreads. In addition, adjustments may be required for the condition or location of the asset or the extent to which it
relates to items that are comparable to the valued instrument. However, if such adjustments are based on unobservable
inputs which are significant to the entire measurement, the Company will classify the instruments as Level 3.
Level 3 financial instruments - Those that include one or more unobservable input that is significant to the measurement
as whole.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during
which the change has occurred. No such instances of transfers between levels of the fair value hierarchy were recorded
during the reporting period.
Difference between transaction price and fair value at initial recognition
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price (i.e. the fair
value of the consideration given or received) unless the fair value of that instrument is evidenced by comparison with
other observable current market transactions in the same instrument (i.e. without modification or repackaging) or
based on a valuation technique whose variables include only data from observable markets. When such evidence exists,
the Company recognises the difference between the transaction price and the fair value in profit or loss on initial
recognition (i.e. on day one).
When the transaction price of the instrument differs from the fair value at origination and the fair value is based on
a valuation technique using only inputs observable in market transactions, the Company recognises the difference
between the transaction price and fair value in net gain on fair value changes. In those cases where fair value is based
on models for which some of the inputs are not observable, the difference between the transaction price and the fair
value is deferred and is only recognised in profit or loss when the inputs become observable, or when the instrument is
derecognised.
6.2 Revenue from operations
(i) Interest Income
Interest income is recognised by applying the Effective Interest Rate (EIR) to the gross carrying amount of financial
assets other than credit-impaired assets and financial assets classified as measured at FVTPL.
The EIR in case of a financial asset is computed
a. As the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
the gross carrying amount of a financial asset.
c. Including all fees received between parties to the contract that are an integral part of the effective interest rate,

Interest income on credit impaired assets is recognised by applying the effective interest rate to the net amortised cost
(net of provision) of the financial asset.
Interest on delayed payments by customers are treated to accrue only on realisation, due to uncertainty of realisation
and are accounted accordingly.
Interest spread under par structure of direct assignment of loan receivables is recognised upfront. On derecognition of
the loan receivables in its entirety, the difference between the carrying amount (measured at the date of derecognition)
and the consideration received (including any new asset obtained less any new liability assumed) shall be recognised
upfront in the statement of profit or loss.
(ii) Dividend Income
Dividend income is recognised
a. When the right to receive the payment is established,
b. it is probable that the economic benefits associated with the dividend will flow to the entity and
c. the amount of the dividend can be measured reliably
(iii) Rental Income
Rental income arising from operating leases is recognised on a straight-line basis over the lease term. In cases where the
increase is in line with expected general inflation, rental income is recognised as per the contractual terms.
Operating leases are leases where the Company does not transfer substantially all of the risk and benefits of ownership
of the asset.
(iv) Fees & Commission Income
Fees and commissions are recognised when the Company satisfies the performance obligation, at fair value of the
consideration received or receivable based on a five-step model as set out below, unless included in the effective interest
calculation:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more than
one performance obligation, the Company allocates the transaction price to each performance obligation in an amount
that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.
Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.
(v) Net gain on Fair value changes
Any differences between the fair values of financial assets classified as fair value through the profit or loss (refer Note 34)
held by the Company on the balance sheet date is recognised as an unrealised gain / loss. In cases there is a net gain in
the aggregate, the same is recognised in “Net gains on fair value changes” under Revenue from operations and if there
is a net loss the same is disclosed under “Expenses” in the statement of Profit and Loss.
Similarly, any realised gain or loss on sale of financial instruments measured at FVTPL and debt instruments measured
at FVOCI is recognised in net gain / loss on fair value changes. As at the reporting date, the Company does not have any
financial instruments measured at FVTPL and debt instruments measured at FVOCI.
However, net gain / loss on derecognition of financial instruments classified as amortised cost is presented separately
under the respective head in the Statement of Profit and Loss.
6.3 Expenses
(i) Finance costs
Finance costs represents Interest expense recognised by applying the Effective Interest Rate (EIR) to the gross carrying
amount of financial liabilities other than financial liabilities classified as FVTPL.

The EIR in case of a financial liability is computed

a. As the rate that exactly discounts estimated future cash payments through the expected life of the financial liability
to the gross carrying amount of the amortised cost of a financial liability.
c. Including all fees paid between parties to the contract that are an integral part of the effective interest rate,
Interest expense includes issue costs that are initially recognised as part of the carrying value of the financial liability
and amortised over the expected life using the effective interest method. These include fees and commissions payable
to advisers and other expenses such as external legal costs, rating fee etc, provided these are incremental costs that are
directly related to the issue of a financial liability.
(ii) Retirement and other employee benefits
Short term employee benefit
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. These benefits include short term compensated absences such as paid annual leave. The undiscounted amount
of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised
as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia
are recognised in the period in which the employee renders the related service.
Post-employment employee benefits
a) Defined contribution schemes
All the employees of the Company are entitled to receive benefits under the Provident Fund and Employees State
Insurance scheme, defined contribution plans in which both the employee and the Company contribute monthly at
a stipulated rate. The Company has no liability for future benefits other than its annual contribution and recognises
such contributions as an expense in the period in which employee renders the related service. If the contribution
payable to the scheme for service received before the Balance Sheet date exceeds the contribution already paid,
the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the
contribution already paid exceeds the contribution due for services received before the Balance Sheet date, then
excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future
payment or a cash refund.
b) Defined Benefit schemes
The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides
for lump sum payments to employees upon death while in employment or on separation from employment
after serving for the stipulated years mentioned under ‘The Payment of Gratuity Act, 1972’. The present value
of the obligation under such defined benefit plan is determined based on actuarial valuation, carried out by an
independent actuary at each Balance Sheet date, using the Projected Unit Credit Method, which recognises each
period of service as giving rise to an additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan are based on the market yields on
Government Securities as at the Balance Sheet date.
Net interest recognised in profit or loss is calculated by applying the discount rate used to measure the defined
benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the
discount rate is recognised as part of re-measurement of net defined liability or asset through other comprehensive
income. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, attrition rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive
to changes in these assumptions. All assumptions are reviewed annually.
The Company fully contributes all ascertained liabilities to The Trustees - Shriram Transport Finance Company
Limited Employees Group Gratuity Assurance Scheme. Trustees administer contributions made to the trust and
contributions are invested in a scheme of insurance with the IRDA approved Insurance Companies.
Re-measurement, comprising of actuarial gains and losses and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-
measurements are not reclassified to the statement of profit and loss in subsequent periods.

Other long-term employee benefits

Company’s liabilities towards compensated absences to employees are accrued on the basis of valuations, as at the Balance
Sheet date, carried out by an independent actuary using Projected Unit Credit Method. Actuarial gains and losses comprise
experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the Statement
of Profit and Loss.
The Company presents the provision for compensated absences under provisions in the Balance Sheet.
(iii) Rent Expense:
Upto March 31, 2019
Identification of Lease:
The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or
assets or whether the arrangement conveys a right to use the asset.
Recognition of lease payments:
Rent Expenses representing operating lease payments are recognised as an expense in the statement of profit and loss
on a straight-line basis over the lease term, unless the increase is in line with expected general inflation, in which case
lease payments are recognised based on contractual terms.
Leases that do not transfer to the Company substantially all of the risks and benefits incidental to ownership of the
leased items are operating leases.
From April 01, 2019
The Company has adopted Ind AS 116 ‘Leases’ with the date of initial application being April 01, 2019 (transition
date).The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a
specific asset or assets or whether the arrangement conveys a right to use the asset. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. The
Company, at the inception of a contract, assesses whether the contract is a lease or not lease. For arrangements entered
into prior to April 01, 2019, the Company has determined whether the arrangement contains a lease on the basis of facts
and circumstances existing on the date of transition.
The Company’s lease asset classes consist of leases for office premises.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Company’s incremental borrowing rate at the transition date in case of leases existing as on
the date of transition date and in case of leases entered after transition date, incremental borrowing rate as on the date
of lease commencement date. In case of existing leases the said date would be the date of transition. It is remeasured
when there is a change in future lease payments arising from a change in a rate, if the Company changes its assessment
of whether it will exercise an extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced to zero.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease
term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with
these leases as an expense over the lease term.
In the comparative period, leases, lease payments and receipts under operating leases are recognised as an expense and
income respectively, on a straight line basis in the statement of profit and loss over the lease term except where the lease
payments are structured to increase in line with expected general inflation.
In case of a sub-lease, the Company accounts for its head lease and sub-lease separately.
(iv) Other income and expenses
All other income and expense are recognised in the period they occur.

(v) Impairment of non-financial assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and risks specific to the asset.
In determining net selling price, recent market transactions are taken into account, if available. If no such transactions
can be identified, an appropriate valuation model is used. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.
(vi) Taxes
Current Tax
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered
from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted, or substantively enacted, by the reporting date in the countries where the Company operates and generates
taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax assets and liabilities are recognised for temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred tax assets are only recognised for temporary differences, unused tax losses and unused tax credits if it is
probable that future taxable amounts will arise to utilise those temporary differences and losses. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and
liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities are
realised simultaneously.
Minimum Alternate Tax (MAT)
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company
recognises MAT credit available as an asset only to the extent that it is probable that the Company will pay normal
income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the
year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created
by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the
MAT Credit Entitlement asset at each reporting date and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified period.
Goods and services tax /value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the goods and services tax/value added taxes paid, except:
i. When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which
case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as
applicable.
ii. When receivables and payables are stated with the amount of tax included.
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the balance sheet.
6.4 Foreign currency translation
(i) Functional and presentational currency
The consolidated financial statements are presented in Indian Rupees which is also functional currency of the Company
and the currency of the primary economic environment in which the Company operates.

(ii) Transactions and balances

Initial recognition:
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions.
Conversion:
Monetary assets and liabilities denominated in foreign currency, which are outstanding as at the reporting date, are
translated at the reporting date at the closing exchange rate and the resultant exchange differences are recognised in the
Statement of Profit and Loss.
Non–monetary items that are measured at historical cost in a foreign currency are translated using the spot exchange
rates as at the date of recognition.
6.5 Cash and cash equivalents
Cash and cash equivalents comprise the net amount of short-term, highly liquid investments that are readily convertible
to known amounts of cash (short-term deposits with an original maturity of three months or less) and are subject to an
insignificant risk of change in value, cheques on hand and balances with banks. They are held for the purposes of meeting
short-term cash commitments (rather than for investment or other purposes).
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash on hand, cheques on hand, balances
with banks (of the nature of cash and cash equivalents) and short- term deposits, as defined above.
6.6 Property, plant and equipment
Property, plant and equipment (PPE) are measured at cost less accumulated depreciation and accumulated impairment, (if
any). The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by the management. Changes in the expected useful life are accounted for by changing the amortisation period or
methodology, as appropriate, and treated as changes in accounting estimates.
Subsequent expenditure related to an item of tangible asset are added to its gross value only if it increases the future benefits
of the existing asset, beyond its previously assessed standards of performance and cost can be measured reliably. Other
repairs and maintenance costs are expensed off as and when incurred.
Depreciation
Depreciation is calculated using the straight–line method to write down the cost of property and equipment to their residual
values over their estimated useful lives which is in line with the estimated useful life as specified in Schedule II of the Companies
Act, 2013 except for Leasehold improvements which are amortised on a straight-line basis over the period of lease or estimated
period of useful life of such improvement, subject to a maximum period of 60 months. Leasehold improvements include all
expenditure incurred on the leasehold premises that have future economic benefits. Land is not depreciated.
The estimated useful lives are as follows:
Useful life as prescribed by Schedule Useful life estimated by

Particulars II of the Companies Act, 2013 Company
Building 60 years 60 years
Plant and machinery 15 years 15 years
Electrical equipment 10 years 10 years
Generator 10 years 10 years
Furniture and fixture 10 years 10 years
Air conditioner 5 years 5 years
Electronic equipment 5 years 5 years
Office equipment 5 years 5 years
Refrigerator 5 years 5 years
Motor car 8 years 8 years
Vehicles 10 years 10 years
Server and networking 6 years 6 years
Computer 3 years 3 years
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.

Property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the asset is
derecognised. The date of disposal of an item of property, plant and equipment is the date the recipient obtains control of that
item in accordance with the requirements for determining when a performance obligation is satisfied in Ind AS 115.
6.7 Intangible assets
An intangible asset is recognised only when its cost can be measured reliably and it is probable that the expected future economic
benefits that are attributable to it will flow to the Company.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of an intangible asset comprises its
purchase price and any directly attributable expenditure on making the asset ready for its intended use and net of any trade
discounts and rebates. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and
any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised
over the useful economic life. The amortisation period and the amortisation method for an intangible asset with a finite useful
life are reviewed at least at each financial year-end. Changes in the expected useful life, or the expected pattern of consumption
of future economic benefits embodied in the asset, are accounted for by changing the amortisation period or methodology, as
appropriate, which are then treated as changes in accounting estimates. The amortisation expense on intangible assets with finite
lives is presented as a separate line item in the statement of profit and loss. Amortisation on assets acquired/sold during the year
is recognised on a pro-rata basis to the Statement of Profit and Loss from / upto the date of acquisition/sale.
Amortisation is calculated using the straight–line method to write down the cost of intangible assets to their residual values
over their estimated useful lives. Intangible assets comprising of software are amortised on a straight-line basis over a period of
3 years, unless it has a shorter useful life.
The Company’s intangible assets consist of computer software with definite life.
Gains or losses from derecognition of intangible assets are measured as the difference between the net disposal proceeds and the
carrying amount of the asset are recognised in the Statement of Profit and Loss when the asset is derecognised.
6.8 Investment Property
Properties, held to earn rentals and/or capital appreciation are classified as investment property and measured and reported at
cost, including transaction costs.
Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual
values over their useful lives specified in Schedule II to the Companies Act, 2013 or in case of assets where the useful life was
determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year
end to reflect the expected pattern of consumption of the future benefits embodied in the investment property. The estimated
useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful
life/residual value is accounted on prospective basis.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use
and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is
recognised in the Statement of Profit and Loss in the same period.
6.9 Provisions
Provisions are recognised when the enterprise has a present obligation (legal or constructive) as a result of past events, and it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
When the effect of the time value of money is material, the enterprise determines the level of provision by discounting the
expected cash flows at a pre-tax rate reflecting the current rates specific to the liability. The expense relating to any provision is
presented in the statement of profit and loss net of any reimbursement. As at reporting date, the Company does not have any
such provisions where the effect of time value of money is material.
6.10 Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not
recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The
Company does not recognise a contingent liability but discloses its existence in the financial statements.
6.11 Earning Per Share
The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share. Basic EPS is
calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend
and attributable taxes) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity

shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at
a later date. In computing the dilutive earnings per share, only potential equity shares that are dilutive and that either reduces
the earnings per share or increases loss per share are included.
6.12 Share Based Payment Transactions
As per Ind AS 101, the entity is encouraged, but not required, to apply Ind AS 102 Share-based payment to equity instruments
that vested before date of transition to Ind-AS. The Company has decided to avail this exemption and have decided not to apply
the requirements of Ind AS 102 to equity instruments that vested before date of transition to Ind-AS.
7 Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the
disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods
are affected. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
7.1 Business Model Assessment
Classification and measurement of financial assets depends on the results of the SPPI and the business model test. The Company
determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular
business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the
assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed
and how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or
fair value through other comprehensive income that are derecognised prior to their maturity to understand the reason for their
disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is
part of the Company’s continuous assessment of whether the business model for which the remaining financial assets are held
continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective
change to the classification of those assets.
7.2 Defined employee benefit assets and liabilities
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.
These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed annually.
7.3 Fair value measurement:
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using various valuation techniques. The inputs to these models are
taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing
fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.
7.4 Impairment of loans portfolio
The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the estimation
of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of
a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different
levels of allowances.
It has been the Company’s policy to regularly review its models in the context of actual loss experience and adjust when necessary.
The impairment loss on loans and advances is disclosed in more detail in Note 6.1(xi) Overview of ECL principles.
7.5 Contingent liabilities and provisions other than impairment on loan portfolio
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition
and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject
to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts
and circumstances.

7.6 Effective Interest Rate (EIR) method

The Company’s EIR methodology, recognises interest income / expense using a rate of return that represents the best estimate of
a constant rate of return over the expected behavioural life of loans given / taken and recognises the effect of potentially different
interest rates at various stages and other characteristics of the product life cycle (including prepayments and penalty interest and
charges).
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the instruments,
as well expected changes to India’s base rate and other fee income/expense that are integral parts of the instrument
7.7 Other estimates
These include contingent liabilities, useful lives of tangible and intangible assets etc.
(Rs. in crores)
As at As at
8 Cash and cash equivalents
Cash on hand 41.24 123.47
Balances with banks (of the nature of cash and cash equivalents) 1,810.59 761.67
Cheques on hand 2.38 18.18
Bank deposit with original maturity less than three months 1,234.78 125.82
Total 3,088.99 1,029.14
Balances with banks earn interest at fixed rates. Short term deposits are made for varying periods of between one day
and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective
short-term deposit rates. The Company has not taken bank overdraft, therefore the cash and cash equivalent for cash flow
statement is same as cash and for cash equivalent given above.
(Rs. in crores)
As at As at
9 Bank balance other than above
Balances with banks
Unclaimed dividend accounts 10.57 10.69
Bank deposit with original maturity for more than three months 364.16 200.37
Balances with banks to the extent held as credit enhancement or security against
3,851.20 2,741.27
the borrowings, guarantees, other commitments. *
Total 4,225.93 2,952.33
Fixed deposit and other balances with banks earns interest at fixed rate.
*Includes deposits Rs. 3,701.14 crores (March 31, 2019: Rs. 2,716.93 crores) pledged with Banks as margin for credit
enhancement, Rs. 146.83 crores (March 31, 2019: Rs. 21.28 crores) as margin for guarantees and Rs. 3.23 crores (March
31, 2019: Rs. 3.06 crores) pledged as lien against loans taken.

10 Derivative financial instruments

The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that either meet
the hedge accounting requirements or hedges that are economic hedges, but the Company has elected not to apply hedge accounting requirements.
The table below shows the fair values of derivative financial instruments recorded as assets or liabilities together with their notional amounts.
The notional amounts indicate the value of transactions outstanding at the year end and are not indicative of either the market risk or credit risk.

(Rs. in crores)
Notional Fair Value Notional Fair Value - Notional Fair Value Notional Fair Value -
Particulars Amounts - Assets Amounts Liabilities Amounts - Assets Amounts Liabilities
Part I
(i) Currency derivatives:
- Spots and forwards 8,018.44 378.05 - - 374.86 1.22 - -
- Currency swaps 1,769.50 11.50 - - 2,402.33 18.67 2,849.90 83.05
- Cross currency interest rate swaps 6,389.23 319.50 - - - - - -
Sub total (i) 16,177.17 709.05 - - 2,777.19 19.89 2,849.90 83.05
(ii) Interest rate derivatives:
-Forward rate agreements and
- - - - 40.00 1.83 15.00 0.37
interest rate swaps
-Interest rate swaps 8,744.63 45.77 - - - - - -
-Interest rate caps - 3.91 - - - - - -
Sub total (ii) 8,744.63 49.68 - - 40.00 1.83 15.00 0.37
(iii) Credit derivatives: - - - - - - - -
(iv) Equity linked derivatives: - - - - - - - -
(v) Other derivatives: - - - - - - - -
Total derivative financial instruments 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
(i+ii+iii+iv+v)
Part II
Included in above (Part I) are
derivatives held for hedging and
risk management purposes as
follows:
(i) Undesignated Derivatives 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
Total Derivative Financial Instruments
24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
(i)+(ii)+(iii)+(iv)
Hedging activities and derivatives
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are foreign currency risk and interest rate risk. The Company’s risk management strategy and how it is applied to
manage risk are explained in Note 53.
Derivatives designated as hedging instruments
The Company has not designated any derivatives as hedging instruments.
Derivatives not designated as hedging instruments
The Company uses cross currency interest rate swaps, interest rate swaps, principal only swaps, forward contracts, interest rate
caps to manage its interest rate risk and foreign currency risk arising from USD and EURO denominated External commercial
borrowings and bonds. The derivative instruments are entered into for periods consistent with exposure of the underlying
transactions.

10 Derivative financial instruments (Contd.)
Details of the derivative instruments are given below:

(Rs. in crores)
Notional Derivative Notional Derivative Notional Derivative Notional Derivative
Particulars amounts assets amounts liabilities amounts assets amounts liabilities
Interest rate risk:
Interest rate swaps 8,744.63 45.77 - - 40.00 1.83 15.00 0.37
Interest rate caps - 3.91 - - - - - -
Foreign currency risk:
Principal only swaps 1,769.50 11.50 - - - - - -
Currency swaps - - - - 2,402.33 18.67 2,849.90 83.05
Forward contracts 8,018.44 378.05 - - 374.86 1.22 - -
Cross currency interest rate swaps 6,389.23 319.50 - - - - - -
Total 24,921.80 758.73 - - 2,817.19 21.72 2,864.90 83.42
11 Receivables
(I) Trade receivables
(Rs. in crores)
As at As at
Trade receivables considered good-secured - -
Trade receivables considered good-unsecured 10.50 8.48
Trade receivables which have significant increase in credit risk - -
Trade receivables -credit impaired - -
Total 10.50 8.48
Less: Allowances for impairment loss - -
Total 10.50 8.48
(II) Other receivables

(Rs. in crores)
As at As at
Other receivables considered good-secured - -
Other receivables considered good-unsecured * 5.64 19.94
Other receivables which have significant increase in credit risk - -
Other receivables - credit impaired 2.10 1.58
Total 7.74 21.52
Less: Allowances for impairment loss on credit impaired other receivables 2.10 1.58
Total 5.64 19.94
There is no dues from directors or other officers of the Company or any firm or private company in which any director is a
partner, a director or a member.
Trade receivables are non-interest bearing and are generally on terms of 30 days.
*Includes receivables from associate Rs. Nil (March 31, 2019: Rs. 0.58 crores).

11 Receivables (Contd.)
(Rs. in crores)
Trade receivables days past due Current past due past due past due past due days past due
March 31, 2020 Estimated total gross carrying
- 10.22 0.28 - - - 10.50
amount at default
Net carrying amount - 10.22 0.28 - - - 10.50
7.98 0.07 0.43 - - - 8.48
amount at default
Net carrying amount 7.98 0.07 0.43 - - - 8.48
The managements expects no default in receipt of trade receivables; also there is no history of default observed by the management.
Hence, no ECL has been recognised on trade receivables.
(Rs. in crores)
Other receivables days past due Current past due past due past due past due days past due
- 2.46 1.73 1.71 0.31 1.53 7.74
amount at default
ECL-simplified approach - 0.18 0.04 0.04 0.31 1.53 2.10
Net carrying amount - 2.28 1.69 1.67 - - 5.64
March 31, 2019 Estimated total gross
0.24 19.30 0.34 0.06 0.08 1.50 21.52
carrying amount at default
ECL-simplified approach - - - - 0.08 1.50 1.58
Net carrying amount 0.24 19.30 0.34 0.06 - - 19.94
Reconciliation of impairment allowance on other receivables:

(Rs. in crores)
Particulars Amount
Impairment allowance measured as per simplified approach
Impairment allowance as per April 01, 2018 1.92
Add: Addition during the year -
Add: Addition during the year 0.53

(Rs. in crores)
As at As at
12 Loans
(A)
Loans (at amortised cost)
i) Term loans 105,073.08 99,444.62
ii) Others -Unsecured loans 3,428.63 2,862.87
Total (A) - Gross 108,501.71 102,307.49
Less : Impairment loss allowance 6,270.08 5,556.00
Total ( A) - Net 102,231.63 96,751.49
(B)
i) Secured by tangible assets 105,061.35 99,440.23
ii) Secured by deposits 11.73 4.39
iii) Unsecured 3,428.63 2,862.87
Total ( B) - Gross 108,501.71 102,307.49
Total ( B) - Net 102,231.63 96,751.49
(C ) Loans in India
i) Public sector - -
ii) Others
Retail 107,959.44 101,790.38
Corporates 542.27 517.11
Total ( C) - Gross 108,501.71 102,307.49
Total ( C )- Net 102,231.63 96,751.49
Credit quality of assets

The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit rating system and
year-end stage classification. The amounts presented are gross of impairment allowances. Details of the Company’s internal grading system are
explained in note 53.02 and policies on whether ECL allowances are calculated on an individual or collective basis are set out in note 53.02.02.06.
(Rs. in crores)
Particulars collective collective collective collective collective collective
Performing
High grade 71,178.65 - - 71,178.65 52,834.58 - - 52,834.58
Standard grade 15,886.32 - - 15,886.32 21,265.18 - - 21,265.18
Sub-standard grade - 10,002.10 - 10,002.10 - 13,607.30 - 13,607.30
Past due but not impaired - 2,257.56 - 2,257.56 - 5,983.97 - 5,983.97
Non- performing - - 9,177.08 9,177.08 0.13 0.06 8,616.27 8,616.46
Total 87,064.97 12,259.66 9,177.08 108,501.71 74,099.89 19,591.33 8,616.27 102,307.49

12 Loans (Contd.)
An analysis of changes in the gross carrying amount as follows:
(Rs. in crores)
Particulars
Gross carrying amount opening 74,099.89 19,591.33 8,616.27 102,307.49 70,398.28 16,865.67 8,934.46 96,198.41
balance
New assets originated or purchased 43,005.82 7,356.58 1,113.47 51,475.87 40,762.97 9,240.97 2,339.34 52,343.28
Assets derecognised or repaid (31,192.03) (8,391.85) (3,662.42) (43,246.30) (32,302.58) (8,251.76) (3,332.56) (43,886.90)
(excluding write offs and includes
interest accruals adjusted)
Transfers to stage 1 30,922.99 (27,685.66) (3,237.33) - 7,333.10 (6,292.38) (1,040.72) -
Transfers to stage 2 (26,129.73) 30,711.25 (4,581.52) - (9,506.30) 10,374.80 (868.50) -
Transfers to stage 3 (3,235.91) (9,157.36) 12,393.27 - (2,186.45) (2,112.51) 4,298.96 -
Changes to contractual cash flows - - - - - - - -
due to modifications not resulting in
derecognition
Gross carrying amount closing 87,064.97 12,259.66 9,177.08 108,501.71 74,099.89 19,591.33 8,616.27 102,307.49
balance

(Rs. in crores)
Particulars
ECL allowance - opening balance 1,472.80 1,113.46 2,969.74 5,556.00 1,393.04 965.36 3,094.39 5,452.79
New assets originated or purchased 887.83 489.55 382.72 1,760.10 1,929.56 664.44 949.21 3,543.21
Transfers to stage 1 2,611.27 (1,581.05) (1,030.22) - 731.99 (376.75) (355.24) -
Transfers to stage 2 (524.43) 2,014.89 (1,490.46) - (192.27) 488.28 (296.01) -
Transfers to stage 3 (63.94) (552.01) 615.95 - (47.46) (138.55) 186.01 -
Impact on year end ECL of exposures (1,821.42) (392.13) 3,202.88 989.33 (1,942.93) (255.86) 1,106.09 (1,092.70)
transferred between stages during
the year and reversal of ECL on
account of recovery
ECL allowance - closing balance 2,156.05 928.08 3,185.95 6,270.08 1,472.80 1,113.46 2,969.74 5,556.00
The contractual amount outstanding on loans that have been written off during the financial year, but were still subject to enforcement activity
was Rs. 1,447.19 crores at March 31, 2020 ( March 31, 2019: Rs. 1,802.17 crores).

13 Investments
(Rs. in crores)
Amortised At Fair Others Total Amortised At Fair Others Total
Cost value (at cost) Cost value (at cost)
Through Through
profit or profit or
Particulars loss * loss *
i) Mutual funds * - 3.02 - 3.02 - 323.82 - 323.82
ii ) Government securities 1,824.46 - - 1,824.46 1,495.15 - - 1,495.15
(refer note 64)
iii) Debt securities 52.67 - - 52.67 52.67 - - 52.67
iv) Equity instruments - 3.36 - 3.36 - 3.58 - 3.58
v) Associates (at cost) - - 150.52 150.52 - - 139.84 139.84
vi) Pass through certificates 942.79 - - 942.79 877.81 - - 877.81
(unquoted)
vii) Certificate of deposits - - - - - 1,231.71 - 1,231.71
viii) Others (venture capital - 1.04 - 1.04 - 0.97 - 0.97
fund)
Total Gross (A) 2,819.92 7.42 150.52 2,977.86 2,425.63 1,560.08 139.84 4,125.55
i) Investments outside India - - - - - - - -
ii) Investments in India 2,819.92 7.42 150.52 2,977.86 2,425.63 1,560.08 139.84 4,125.55
Total Gross (B) 2,819.92 7.42 150.52 2,977.86 2,425.63 1,560.08 139.84 4,125.55
Less : Allowance for (42.23) - - (42.23) (0.01) - - (0.01)
impairment loss (C)
Total - Net D = (A) - (C ) 2,777.69 7.42 150.52 2,935.63 2,425.62 1,560.08 139.84 4,125.54
More information regarding the valuation methodologies can be found in Note 52.10
* The Company received dividend of Rs. 0.19 crores (March 31, 2019: Rs. 4.99 crores) from its investments measured at fair value through profit
or loss, recorded as dividend income.
Investments carried at amortised cost
The table below shows the credit quality and the maximum exposure to credit risk per based on the Company’s internal credit rating system and
year-end stage classification. The amounts presented are gross of impairment allowances. Details of the Company’s internal grading system for
investments carried at amortised cost are explained in note 53.02.
(Rs. in crores)
Particulars individual individual individual individual
Performing
High grade 2,767.25 - - 2,767.25 2,425.63 - - 2,425.63
Standard grade - - - - - - - -
Non-performing - - - - - - - -
Individually Impaired - 52.67 - 52.67 - - - -
Total 2,767.25 52.67 - 2,819.92 2,425.63 - - 2,425.63

13 Investments (Contd.)
An analysis of changes in gross carrying amount and the corresponding ECLs on investments carried at amortised cost is
as follows:
(Rs. in crores)
Gross carrying amount – 2,425.63 - - 2,425.63 2,267.04 52.67 - 2,319.71
opening balance
New assets originated or 1,190.59 - - 1,190.59 798.22 - - 798.22
purchased
Assets derecognised or (796.51) - - (796.51) (692.10) - - (692.10)
matured (excluding write-
offs)
Change in fair value 0.21 - - 0.21 (0.20) - - (0.20)
Closing balance 2,767.25 52.67 - 2,819.92 2,425.63 - - 2,425.63

(Rs. in crores)
Opening balance in ECL 0.01 - - 0.01 - 0.07 - 0.07
New assets originated or - - - - - - - -
purchased
Unwinding of discount - 0.93 - 0.93 - - - -
(recognised in interest
income)
Changes to models and 23.79 17.50 - 41.29 (0.06) - - (0.06)
inputs used for ECL
calculations
Closing balance in ECL 23.79 18.44 - 42.23 0.01 - - 0.01
Reconciliation of gross carrying value of investment in associate is given below:

(Rs. in crores)
As at As at
Share of profit of associate 10.43 11.69
Share of other comprehensive income from associates (net of tax) 0.25 (0.10)
(Rs. in crores)
As at As at
14 Other financial assets
Security deposits * 45.15 36.88
Total 45.15 36.88
* Net of allowance for impairment loss recognised on security deposit Rs. 0.60 crore (March 31, 2019: Rs. 1.28 crores).

(Rs. in crores)
As at As at
15 Current tax assets (net)
Advance income tax 249.10 106.58
[net of provision for income tax Rs. 2,910.66 crores (March 31, 2019: Rs.
2,909.82 crores)]
Total 249.10 106.58
(Rs. in crores)
Freehold Freehold
Particulars Land Buildings Total Land Buildings Total
16 Investment property
Gross block at cost
Opening balance 0.70 1.45 2.15 0.70 1.45 2.15
Additions - - - - - -
Closing balance 0.70 1.45 2.15 0.70 1.45 2.15
Opening balance - 0.09 0.09 - 0.06 0.06
Depreciation charge for the year - 0.03 0.03 - 0.03 0.03
Closing balance - 0.12 0.12 - 0.09 0.09
Net carrying amount 0.70 1.33 2.03 0.70 1.36 2.06
(i) Amounts recognised in Statement of Profit and Loss for Investment property
(Rs. in crores)
Rental income from investment property 0.22 0.22
Direct operating expenses arising from investment property that generated rental
0.06 0.03
income during the year
Direct operating expenses arising from investment property that did not generate
- -
rental income during the year
Profit from investment property before depreciation 0.16 0.19
Depreciation charge for the year 0.03 0.03
Profit from investment property after depreciation 0.13 0.16
(ii) Contractual obligations

The Company has no contractual obligations to purchase, construct or develop investment property. However, the
responsibility for its repairs, maintenance or enhancements is with the Company.
(iii) Fair value
The fair value of the investment property as at March 31, 2020 is Rs. 6.43 crores (March 31, 2019: Rs. 6.43 crores).
(iv) Pledged details
Investment property is not pledged.
(v) Estimation of fair value
The fair values of investment property is determined by guidance value given by the local government of the area
where the investment properties are located.
(vi) Leasing arrangements
Investment properties are leased out to tenants. Agreements provide for cancellation by either party or contain
clause for escalation and renewal of agreements. The non-cancellable operating lease agreement is for a period of
108 months.

17 Property, plant and equipment
242
(Rs. in crores)
Particulars Freehold Building Plant and Computers Office Furniture Vehicles Leasehold Total
Land equipment equipment and fixtures improvement
Gross block at cost
As at April 01, 2018 0.15 2.72 8.82 33.62 17.81 20.24 0.54 62.26 146.16
Additions 0.50 0.78 1.86 19.20 8.40 6.73 - 31.92 69.39
Disposals - 1.11 0.90 7.95 1.60 1.17 0.27 5.79 18.79
Adjustment* - - - - 0.01 - - (0.01) -
As at March 31, 2019 0.65 2.39 9.78 44.87 24.62 25.80 0.27 88.38 196.76
Additions - - 1.53 17.66 9.12 5.38 - 22.74 56.43
Disposals 0.06 - 0.29 8.24 2.15 0.78 0.02 6.13 17.67

Adjustment* - - 0.07 - - 0.29 - (0.36) -
Notes
As at March 31, 2020 0.59 2.39 11.09 54.29 31.59 30.69 0.25 104.63 235.52

As at April 01, 2018 - 0.04 1.00 5.70 4.66 1.96 0.03 14.54 27.93
Disposals - 0.17 0.80 7.27 1.48 1.00 0.26 5.57 16.55
Adjustment* - - - - 0.01 - - (0.01) -
As at March 31, 2019 - (0.08) 1.56 10.80 8.17 3.80 (0.15) 29.20 53.30
Disposals - - 0.23 7.44 1.98 0.66 0.01 5.92 16.24
Adjustment* - - 0.02 - - 0.10 - (0.12) -
As at March 31, 2020 - (0.03) 2.82 18.92 11.68 6.52 (0.09) 45.82 85.64
* Adjustment is on account of regrouping of property, plant and equipment and other intangible assets.
Carrying value of property, plant and equipment pledged as collateral for liabilities as at March 31, 2020 is Rs. 0.36 crores (March 31, 2019: Rs. 0.34 crores).

forming part of the Consolidated financial
18 Leases
A] This note provides information for leases where the Company is a lessee.
(i) Amounts recognised in the balance sheet
The Balance sheet shows the following amounts relating to leases
Right-of-use assets (Rs. in crores)
As at
Office premises
As at March 31, 2019 -
Right-of-use assets on transition 371.83
Additions 71.36
Depreciation charge for the year (91.17)
Deletions (24.18)
Lease liabilities
Maturity analysis of lease liabilities (Rs. in crores)
As at
Less than 1 year 80.97
1 to 2 years 74.50
2 to 3 years 61.40
3 to 4 years 47.99
4 to 5 years 35.80
More than 5 years 62.15
Total 362.81
Effective April 01, 2019, the Company adopted Ind AS 116 “Leases” and applied the same to the lease contracts existing
on April 01, 2019 using the modified retrospective approach, recognising right-of-use assets and adjusted lease liability.
As per Ind AS 116, lease commitments are recognised as lease liability and need not be disclosed under contingent
liabilities and commitments.
The Company has taken various office premises under lease. Certain agreements provide for cancellation by either
party or certain agreements contains clause for escalation and renewal of agreements. The non-cancellable operating
lease agreements are ranging for a period 11 to 180 months. There are no restrictions imposed by lease arrangements.
(Rs. in crores)
As at
(ii) Amounts recognised in the Statement of Profit or Loss
Depreciation charge of right-of-use assets (included in depreciation, amortisation and impairment) 91.17
Interest expense (included in finance costs) 33.73
Expense relating to short-term leases (included in other expenses) 9.88
Expense relating to variable lease payments not included in lease liabilities (included in other
-
expenses).
Income from subleasing right-of-use assets(included in other income) 8.61
(iii) Gains or losses arising from sale and leaseback transactions -
(iv) The total cash outflow for leases during the year ended March 31, 2020 110.46
The weighted average incremental borrowing rate of 9.09% has been applied to lease liabilities recognised in the balance
sheet as at April 01, 2019 .
The difference between the operating lease commitments disclosed applying Ind AS 17 as of March 31, 2019 and the
value of the lease liability arrived using the incremental borrowing rate as of April 01, 2019 is primarily on account of
exclusion of short term leases in measuring the lease liability in accordance with Ind AS 116.

18 Leases (Contd.)
The Company does not face a significant liquidity risk with regard to its lease liabilities as the assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.
B] This note provides information for leases where the Company is a lessor.
The Company has given office premises under lease. The income from lease recognised in the Statement of Profit and Loss
are Rs. 0.22 crore (March 31, 2019: Rs. 0.22 crore). Agreements provide for cancellation by either party or contain clause for
escalation and renewal of agreements. The non-cancellable operating lease agreement is for a period of 108 months.
Future minimum lease receivables under non-cancellable leases as at March 31, 2020 are as follows:
(Rs. in crores)
As at As at
Within one year 0.16 0.15
After one year but not more than five years 0.42 0.58
More than five years - -
Total 0.58 0.73

(Rs. in crores)
Particulars Computer software
19 Other intangible assets #
Gross block at cost
As at April 01, 2018 2.63
Additions 1.36
Disposals 1.93
As at March 31, 2019 2.06
Additions 1.96
Disposals -
As at March 31, 2020 4.02
Accumulated amortisation and impairment:
As at April 01, 2018 0.89
Disposals 1.83
Adjustment* 0.00
As at March 31, 2019 0.09
Disposals -
As at March 31, 2020 1.35
* Adjustment is on account of regrouping of property, plant and equipment and other intangible assets
# Other than internally generated

(Rs. in crores)
As at As at
20 Other non-financial assets
Deferred lease rental - 8.67
Goods and services tax credit (input) receivable 66.86 52.06
Prepaid expenses 8.21 8.32
Capital advances 0.86 3.04
Duties paid under protest 86.40 64.68
Other non-financial assets 7.24 6.89
Total 169.57 143.66
21 Payables
Trade payables
(Rs. in crores)
As at As at
(i) total outstanding dues of micro enterprises and small enterprises (refer note
0.40 -
54)
(ii) t otal outstanding dues of creditors other than micro enterprises and small
143.44 133.46
enterprises *
Total 143.84 133.46
*Includes payable to associate Rs. 0.41 crores (March 31, 2019: Rs. Nil).
Other payables
(Rs. in crores)
As at As at
(ii) total outstanding dues of creditors other than micro enterprises and small
1.13 2.72
enterprises
Total 1.13 2.72
(Rs. in crores)
As at As at
22Debt securities
At amortised cost
Secured
- Public issue ¥ 5,796.78 5,770.85
- Privately placed ¥¥ 14,204.14 19,127.33
External commercial bond 12,607.01 2,769.96
Senior secured notes 1,204.92 2,564.99
Unsecured
- Privately placed 454.11 444.83
Commercial papers - 3,503.80
Total 34,266.96 34,181.76
Debt securities in India 20,455.03 28,846.81
Debt securities outside India 13,811.93 5,334.95
Total 34,266.96 34,181.76
¥ includes Rs. 40.50 crores (March 31, 2019 Rs.14.49 crores) issued to related parties including Directors.
¥¥ includes Rs. Nil (March 31, 2019 Rs. 82.81 crores) issued to related parties.

(Rs. in crores)
As at As at
23 Borrowings (other than debt securities)
At amortised cost
Secured
Term loan from banks - INR 13,259.27 11,831.39
Term loan from banks - FCNR - 411.52
Term loan from financial institutions/corporates - INR 1,446.29 3,413.04
External commercial borrowing - FCNR 4,300.61 2,376.53
Loans repayable on demand from banks (Cash credit from banks) 2,016.39 1,418.30
Other loans - INR -Securitisation liabilities 21,452.04 17,738.52
Total 42,474.60 37,189.30
Borrowings in India 38,173.99 34,401.25
Borrowings outside India 4,300.61 2,788.05
Total 42,474.60 37,189.30
(Rs. in crores)
As at As at
24 Deposits
At amortised cost
Unsecured
Deposits
i. Public deposits * 11,768.48 10,169.76
ii. From corporate ** 152.22 145.32
iii. Inter-corporate deposits from associate 39.42 26.38
Total 11,960.12 10,341.46
* includes Rs. 1.58 crores (March 31, 2019 Rs. 1.42 crores) accepted from related parties including Director.
** includes Rs. 1.55 crores (March 31, 2019 Rs. 14.99 crores) accepted from related parties.
(Rs. in crores)
As at As at
25 Subordinated liabilities
At amortised cost
Unsecured
Subordinated debts - Debentures # 5,138.00 5,243.09
Subordinated debts - Bonds ## 532.07 958.79
Total 5,670.07 6,201.88
Subordinated debts in India 5,670.07 6,201.88
Subordinated debts outside India - -
Total 5,670.07 6,201.88
# includes Rs. 422.19 crores (March 31, 2019 Rs. 470.39 crores) issued to related parties.
## includes Rs. 3.17 crores (March 31, 2019 Rs. 5.92 crores) issued to related parties.

I Debt securities
A) Redeemable non-convertible debenture (NCD) -secured

i) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2013)-2
(Rs. in crores)
Total
12-24 months - 104.94 - 104.94
Total - 104.94 - 104.94

(Rs. in crores)
Total
12-24 months - 100.99 - 100.99
Total - 100.99 - 100.99
Nature of security
The Company had utilised the entire sum of Rs. 500.00 crores raised from public issue (net off expenses) towards asset
As per the terms of the issue NCD 2013 ( 2 ) Rs. 114.68 crores were redeemed on October 23, 2018.
As per the terms of the issue Rs. 294.01 crores were redeemed on October 24, 2016.
ii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2014)

(Rs. in crores)
Total
12-24 months 35.05 198.45 - 233.50
Total 35.05 198.45 - 233.50

(Rs. in crores)
Total
24-36 months - 227.59 - 227.59
12-24 months 27.80 437.16 - 464.96
Total 27.80 664.75 - 692.55
Nature of security
The Company had utilised the entire sum of Rs. 1,974.85 crores raised from public issue (net off expenses) towards asset
As per the terms of the issue Rs. 427.15 crores were redeemed on July 15, 2019.
As per the terms of the issue Rs. 1,348.33 crores were redeemed on July 15, 2017.

iii) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 1)
(Rs. in crores)
Total
over 60 months 496.11 - - 496.11
36-48 months 825.13 - - 825.13
12-24 months 2,427.46 - - 2,427.46
Total 3,748.70 - - 3,748.70

(Rs. in crores)
Total
over 60 months 609.81 - - 609.81
48-60 months 813.37 - - 813.37
24-36 months 2,407.61 - - 2,407.61
Total 3,830.79 - - 3,830.79
Nature of security
The Company had utilised the entire sum of Rs. 3,648.52 crores raised from public issue (net off expenses) towards
repayment of borrowings as per the objects stated in the prospectus for the issue.
As per the terms of the issue Rs. 107.40 crores were redeemed on December 26, 2019
iv) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 2)
(Rs. in crores)
Total
over 60 months 71.51 - - 71.51
36-48 months 262.12 - - 262.12
12-24 months - 295.02 - 295.02
Total 333.63 295.02 - 628.65

(Rs. in crores)
Total
over 60 months 71.59 - - 71.59
48-60 months 254.12 - - 254.12
24-36 months - 288.65 - 288.65
Total 325.71 288.65 - 614.36
Nature of security

v) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2018 - 3)

(Rs. in crores)
Total
over 60 months 59.87 - - 59.87
36-48 months 232.06 - - 232.06
12-24 months - 253.76 - 253.76
Total 291.93 253.76 - 545.69

(Rs. in crores)
Total
over 60 months 59.73 - - 59.73
48-60 months 226.96 - - 226.96
24-36 months - 245.47 - 245.47
Total 286.69 245.47 - 532.16
Nature of security
vi) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2019 - 1)
(Rs. in crores)
Total
over 60 months 20.48 41.75 - 62.23
48-60 months 33.47 66.95 - 100.42
24-36 months 41.21 86.90 - 128.11
12-24 months - 54.98 - 54.98
Total 95.16 250.58 - 345.74
Nature of security

vii) Public issue of Non-convertible debentures (NCD) of Rs. 1,000/- each-(IPO 2019 - 2)
(Rs. in crores)
Total
Over 60 months 26.19 - - 26.19
48-60 Months 64.80 - - 64.80
24-36 months 78.09 20.48 - 98.57
Total 169.08 20.48 - 189.56

Nature of security
viii) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
Total
(from the date of the Balance Sheet) < 10%* ¥^ >= 10% < 12% *^ >= 12% < 14% >=14% <16%
over 60 months 524.89 - - - 524.89
48-60 months 154.80 1,299.08 - - 1,453.88
36-48 months 210.38 172.02 - - 382.40
24-36 months 1,780.18 202.41 148.38 - 2,130.97
12-24 months ^ 4,481.32 804.89 - - 5,286.21
upto 12 months *¥^ 4,045.92 379.87 - - 4,425.79
Total 11,197.49 2,858.27 148.38 - 14,204.14
* Includes 1 NCD of Rs. 666.00 crores partly paid to the extent of Rs. 666,000/- (50% redeemed)
* Includes 1 NCD of Rs. 25.00 crores partly paid to the extent of Rs. 111,111.11
the basis of IRR.
1 8.87% 110.00 August 7, 2020
Total 110.00

Total
(from the date of the Balance Sheet) < 10% *^¥ >= 10% < 12% ^ >= 12% < 14% >=14% <16%
over 60 months 692.23 1,334.80 - - 2,027.03
48-60 months 210.24 190.84 - - 401.08
36-48 months ^ 1,522.76 - 145.77 - 1,668.53
24-36 months ^¥ 4,687.66 220.02 - - 4,907.68
12-24 months*^¥ 2,227.78 980.85 199.10 13.61 3,421.34
upto 12 months ¥^ 6,701.67 - - - 6,701.67
Total 16,042.34 2,726.51 344.87 13.61 19,127.33

* Includes 1 NCD of Rs. 25.00 crores partly paid to the extent of Rs.111,111.11
the basis of IRR.
1 8.87% 110.00 August 7, 2020
2 8.10% 300.00 March 23, 2020
3 8.79% 45.00 May 22, 2019
Total 455.00
Nature of security
Secured by specific assets covered under hypothecation loan and by way of exclusive charge and equitable mortgage of
immovable property.
(Rs. in crores)
As at As at
Total non-convertible debentures- secured
March 31, 2020 March 31, 2019
Public issue (i+ii+iii+iv+v+vi+vii) 5,796.78 5,770.85
Privately placed (viii) 14,204.14 19,127.33
Total non-convertible debentures- secured 20,000.92 24,898.18
B) External commercial bond (ED) Secured

Privately Placed Redeemable External commercial bond of Rs. 100,000/- each
Detail < 10% >= 10% < 12% Total
36-48 months 3,808.17 - 3,808.17
24-36 months 5,772.26 - 5,772.26
12-24 months - 3,026.58 3,026.58
Total 9,580.43 3,026.58 12,607.01

Detail Rate of interest Total
24-36 months >=10% <12% 2,769.96
Total 2,769.96
due 2022 in offshore market (notes) equivalent to Rs. 1,714.38 crores under USD 2,000,000,000 Global Medium Term
Note Programme. The said notes are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the issue of the notes
have been utilised for the purpose of onward lending and other activities as may be permitted by the ECB Directions.
due 2023 in offshore market (Social Bonds) equivalent to Rs. 3,541.75 crores under USD 3,000,000,000 Global Medium
Term Note Programme. The said Social Bonds are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the
issue of the Social Bonds have been utilised for the purpose of onward lending and other activities as per the Company’s
Social Finance Framework and as may be permitted by the ECB Directions.

During the year ended March 31, 2019, the Company issued and allotted senior secured notes in offshore market (notes)
aggregating to INR 2,849.90 crores consisting of 5.70% notes due 2022 under INR 5,000 crores Medium Term Note
Programme. The notes issued by the Company are listed on Singapore Stock Exchange (SGX- ST). The proceeds of the
issue have been utilised for the purpose of onward disbursements.
Nature of security
C) Senior secured notes
Senior secured notes of Rs. 10,000,000/- each
Terms of repayment
(Rs. in crores)
As at As at
Detail Rate of interest
March 31, 2020 March 31, 2019
48-60 months <10% - 882.97
36-48 months <10% 885.54 -
24-36 months <10% - 317.48
12-24 months <10% - 1,364.54
upto 12 months <10% 319.38 -
Total 1,204.92 2,564.99
During the year ended March 31, 2018, the Company had issued senior secured notes in offshore market (notes) aggregating
to INR 1,160 crores consisting of INR 840 crores 8.10% notes due 2023 and INR 320 crores 7.90% notes due 2021 payable
in US dollars under INR 5,000 crores Medium Term Note Programme. The notes issued by the Company are listed on
Singapore Stock Exchange (SGX- ST).
During the year ended March 31, 2017, the Company had issued Rs. 1,350.00 crores 8.25 % senior secured notes at the
price of 100.18% that are due for repayment on February 18, 2020. The said notes (with ISIN - XS 1549374475) are listed
and traded on the Singapore Exchange (SGX-ST) with a minimum board lot size of S $200,000.
As per the terms of the issue, Rs. 1,350.00 crores were redeemed on February 18, 2020.
Nature of security
D) Redeemable non-convertible debenture (NCD) -unsecured
i) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
(Rs. in crores)
Total
48-60 months - - 454.11 454.11
Total - - 454.11 454.11

Total
over 60 months - - 444.83 444.83
Total - - 444.83 444.83

E) Commercial paper (CP) - unsecured

Privately placed redeemable commercial paper of Rs. 500,000/- each
Total
Balance Sheet) < 10% >= 10% < 12% >= 12% < 14%
upto 12 months 3,503.80 - - 3,503.80
Total 3,503.80 - - 3,503.80
II Borrowings (other than debt securities)
A) Term loans from banks -secured (INR)

Balance Sheet)
36-48 months 8.91% to 9.68% 20 instalments of quarterly frequency 583.49
24-36 months 8.11% to 9.63% 1 to 36 instalments of bullet, monthly, quarterly 2,469.48
and specific frequency
12-24 months 7.00% to 9.90% 1 to 20 instalments of bullet, quarterly and specific 3,112.87
frequency
half-yearly and specific frequency
Total 13,259.27
Nature of security

Balance Sheet)
48-60 months 8.50% to 10.74% 20 to 21 instalments of quarterly frequency 749.37
24-36 months 8.30% to 9.85% 12 to 20 instalments of quarterly and specific 2,169.61
frequency
12-24 months 8.45% to 10.35% 7 to 36 instalments of monthly, quarterly and 2,256.55
specific frequency
half-yearly and yearly frequency
Total 11,831.39

Nature of security

B) Term loans from banks -secured (FCNR)


Balance Sheet)
specific frequency
Total 411.52
Nature of security
C) Term loans from financial institutions/corporates -secured (INR)
Balance Sheet)
12-24 months 7.95% to 9.21% 11 to 20 instalments of quarterly and 646.94
specific frequency
upto 12 months 8.60% to 9.29% 1 to 20 instalments of bullet and quarterly 110.57
frequency
Total 1,446.29
Nature of security
Balance Sheet)
over 60 months 10.20% 11 instalments of half-yearly and specific 320.35
frequency
48-60 months 10.50% 11 instalments of half-yearly and specific 712.29
frequency
36-48 months 8.40% to 9.98% 11 to 20 instalments of quarterly and 1,121.92
specific frequency
12-24 months 8.75% to 9.27% 1 to 20 instalments of bullet and quarterly 771.76
frequency
half-yearly frequency
Total 3,413.04
Nature of security

D) External commercial borrowing

Balance Sheet)
over 60 months 8.63% to 11.06% 11 to 13 instalments of half-yearly and 1,694.61
specific frequency
Total 4,300.61
Nature of security

Balance Sheet)
Total 2,376.53
Nature of security
E) Other loans - INR -Securitisation liabilities

Balance Sheet)
above 60 months 9.40% to 10.02% 1 to 57 instalments monthly frequency 676.13
48-60 months 7.99% to 10.97% 1 to 63 instalments monthly frequency 9,882.22
12 - 24 months 7.00% to 7.53% 1 to 55 instalments monthly frequency 303.11
below 12 months 8.28% to 10.21% 1 to 57 instalments monthly frequency 2,011.08
Total 21,452.04
Nature of security
Balance Sheet)
48-60 months 8.31% to 10.38% 1 to 61 instalments of monthly frequency 9,473.46
12 - 24 months 7.54% to 8.30% 1 to 55 instalments of monthly frequency 298.82
Total 17,738.52
Nature of security

F) Loans repayable on demand from banks (Cash credit from banks)

(Rs. in crores)
Total 2,016.39
(Rs. in crores)
Total 1,418.30

III Deposits
A) Deposits from public - unsecured -[refer note 64]

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 1,010.22 - 1,010.22
36-48 months 1,140.06 - 1,140.06
24-36 months 3,089.58 - 3,089.58
12-24 months 3,766.76 - 3,766.76
upto 12 months 2,761.85 - 2,761.85
Total 11,768.47 - 11,768.47

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 1,050.68 - 1,050.68
36-48 months 944.76 - 944.76
24-36 months 3,583.09 - 3,583.09
12-24 months 2,201.39 - 2,201.39
upto 12 months 2,093.31 296.53 2,389.84
Total 9,873.23 296.53 10,169.76
(Rs. in crores)
As at As at
Particulars
March 31, 2020 March 31, 2019
Total Deposits from public 11,768.47 10,169.76

III Deposits (Contd.)
B) Deposits from corporates - unsecured

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 4.53 - 4.53
36-48 months 2.16 - 2.16
24-36 months 18.08 - 18.08
12-24 months 71.44 - 71.44
upto 12 months 56.01 - 56.01
Total 152.22 - 152.22

Total
Balance Sheet) < 10% >= 10% < 12%
48-60 months 16.54 - 16.54
36-48 months 6.13 - 6.13
24-36 months 24.02 - 24.02
12-24 months 35.17 - 35.17
upto 12 months 63.12 0.34 63.46
Total 144.98 0.34 145.32
C) Inter-corporate deposits from associate (Rs. in crores)

As at
March 31, 2020
Total 39.42
(Rs. in crores)
As at
March 31, 2019
Total 26.38
Iv Subordinated liabilities
A) Subordinated liabilities -unsecured - Bonds

i) Privately placed subordinated debts of Rs. 1,000/- each
Redeemable at par (from the date Rate of interest
Total
of the Balance Sheet) <10% >=10% <12% >=12% <14%
upto 12 months - 532.07 - 532.07
Total - 532.07 - 532.07


Total
12-24 months - 492.67 - 492.67
upto 12 months - 466.12 - 466.12
Total - 958.79 - 958.79
(Rs. in crores)
As at As at
Subordinated liabilities (unsecured) - Bonds
March 31, 2020 March 31, 2019
Privately placed 532.07 958.79
Total Subordinated liabilities (unsecured) - Bonds 532.07 958.79
B) Subordinated liabilities -unsecured - Debentures

i) Privately placed subordinated liabilities of Rs. 100,000/- each
Total
upto 12 months - 74.94 - 74.94
Total - 74.94 - 74.94

Total
12-24 months - 74.92 - 74.92
upto 12 months - 67.04 - 67.04
Total - 141.96 - 141.96
ii) Privately placed subordinated liabilities of Rs. 1,000,000/- each

Total
over 60 months 1,570.91 135.51 - 1,706.42
48-60 months 40.97 531.22 1,609.30 2,181.49
36-48 months - 332.37 - 332.37
24-36 months - 308.85 - 308.85
12-24 months - - 51.86 51.86
upto 12 months - 482.07 - 482.07
Total 1,611.88 1,790.02 1,661.16 5,063.06

Total
over 60 months 1,611.01 662.08 1,580.12 3,853.21
48-60 months - 332.10 - 332.10
36-48 months - 308.59 - 308.59
24-36 months - - 51.77 51.77
12-24 months - 481.33 - 481.33
upto 12 months - 74.13 - 74.13
Total 1,611.01 1,858.23 1,631.89 5,101.13

(Rs. in crores)
As at As at
Subordinated liabilities (unsecured) - Debentures
March 31, 2020 March 31, 2019
Privately placed (i+ii) 5,138.00 5,243.09
Total Subordinated liabilities (unsecured) - Debentures 5,138.00 5,243.09
(Rs. in crores)
As at As at
26 Other financial liabilities
Investor education and protection fund shall be credited by the following
amounts (as and when due)
- Unclaimed dividend 10.57 10.69
- Unclaimed matured deposits and interest accrued thereon 150.02 173.40
- Unclaimed matured debentures and interest accrued thereon 15.45 18.33
- Unclaimed matured subordinated debts and interest accrued thereon 81.69 46.61
Temporary credit balance in bank accounts 26.63 68.95
Payable on account of assignment 78.78 131.67
Payable to dealers 0.99 6.20
Payable to employees 146.41 125.15
Retention money and other sundry liabilities 217.27 217.73
Other liabilities * 184.51 217.75
Total 912.32 1,016.48
* Other liabilities include amount payable to Banks for credit card payments, settlement dues payable to resigned employees.
(Rs. in crores)
As at As at
27 Current tax liabilities (net)
For taxation
102.02 102.97
[net of advance tax Rs. 1,077.82 crores (March 31, 2019: Rs. 2.64 crores )]
Total 102.02 102.97
(Rs. in crores)
As at As at
28 Provisions
For employee benefits
For gratuity (refer note 46 ) 3.37 1.28
For compensated absences (leave encashment and availment) 34.06 27.47
For others
For undrawn loan commitment 16.15 11.76
For taxes- contested 92.75 92.75
Total 146.33 133.26

Financial guarantee obligation

An analysis of changes in the gross carrying amount in relation to financial guarantee exposure is, as follows:
(Rs. in crores)
Opening balance of outstanding exposure - 871.76
Additions - -
Deletions - (871.76)
Closing balance of outstanding exposure - -
Reconciliation of ECL on financial guarantee obligation is given below:

(Rs. in crores)
Particulars Simplified approach Simplified approach
Financial guarantee obligation - opening balance - 72.93
Additions - -
Deletions - (72.93)
Financial guarantee obligation - closing balance - -
Loan commitments
Credit quality of exposure
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit
Company’s internal grading system are explained in Note 53.02 and policies on whether ECL allowances are calculated on
an individual or collective basis are set out in Note 53.02.02.06.
(Rs. in crores)

Particulars Stage 1 Collective Stage 1 Collective
Performing
High grade 311.87 471.92
Total 311.87 471.92
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to other
undrawn loan commitments is, as follows:
(Rs. in crores)
Opening balance of outstanding exposure 471.92 124.86
Exposures derecognised or matured/repaid (excluding
(393.44) (101.96)
write offs)
Closing balance of outstanding exposure 311.87 471.92

Reconciliation of ECL balance in relation to other undrawn loan commitments is given below:
(Rs. in crores)
ECL allowance - opening balance 11.76 5.05
Exposures derecognised or matured (excluding write offs) (6.39) (4.42)
ECL allowance - closing balance 16.15 11.76
(Rs. in crores)
As at As at
29 Other non-financial liabilities
Statutory dues payable 73.96 54.87
Advance from customers 9.32 14.62
Total 83.28 69.49
(Rs. in crores)
As at As at
30 Equity share capital
Authorised:
647,000,000 (March 31, 2019: 647,000,000) equity shares of Rs.10/- each 647.00 647.00
95,000,000 (March 31, 2019: 95,000,000) preference shares of Rs.100/- each 950.00 950.00
1,597.00 1,597.00
Issued share capital
Subscribed share capital
Paid up (fully paid up)
Equity shares
226,882,736 (March 31, 2019: 226,882,736) equity shares of Rs. 10/- each fully 226.88 226.88
paid up
226.88 226.88
Nil [March 31, 2019: 48,000 equity shares of Rs.10/- each (Rs. 5/- each paid up
- 0.02
forfeited)] *
Total Equity 226.88 226.90
* The shareholders in their 40th annual general meeting held on June 27, 2019 considered and approved the cancellation
of the forfeited shares from the issued and subscribed share capital of the Company.

30 Equity share capital (Contd.)
a. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year
Number of
Particulars shares (Rs. in crores)
As at March 31, 2018 226,882,736 226.88
As at March 31, 2019 226,882,736 226.88
As at March 31, 2020 226,882,736 226.88
b. Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is
entitled to one vote per share. The dividend is subject to the approval of the shareholders in the ensuing annual general
meeting.
During the year ended March 31, 2020, the total dividend per equity share proposed for distribution to equity shareholders
is Rs. 5.00 (March 31, 2019 : Rs. 12.00). Out of the said total dividend proposed for the year ended March 31, 2020, amount
of interim dividend paid during the year was Rs. 5.00 (March 31, 2019 : Rs. 5.00) per equity share and amount of final
dividend proposed by the Board of Directors is Rs. Nil (March 31, 2019: Rs. 7.00) per equity share. The Board of Directors
at its meeting held on October 24, 2019, had declared interim dividend of Rs. 5/- per equity share of Rs. 10/- each for the
financial year 2019-2020. The payment was made on November 19, 2019. In order to conserve cash resources to face the
challenges and the contingencies created by Corona virus pandemic, the Board of Directors have not recommended the
final dividend. As such, the interim dividend shall be the final dividend for the financial year 2019-20.
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.
c. Aggregate number of equity shares issued for consideration other than cash during the period of five years immediately
preceding the reporting date:
Nil.
d. Details of shareholders holding more than 5% equity shares in the Company
Details of shareholding As at March 31, 2020 As at March 31, 2019

Number of Number of
Name of the shareholder % holding % holding
shares shares
Equity shares of Rs. 10/- each
Shriram Capital Limited 59,504,947 26.23% 59,173,023 26.08%
Piramal Enterprises Limited Nil Nil 22,600,000 9.96%
e. Refer note 51- Capital management for the Company’s objectives, policies and processes for managing capital
f. Proposed dividends on equity shares:
(Rs. in crores)
As at As at
Proposed dividend on equity shares for the year ended on March 31, 2020: Rs.
- 158.82
Nil per share (March 31, 2019: Rs. 7.00 per share)
Tax on proposed dividend - 32.65
Total - 191.47

(Rs. in crores)
As at As at
31 Other Equity
Statutory reserve (Pursuant to Section 45-IC of The RBI Act, 1934)
Securities premium account 1,754.81 1,754.81
Capital reserve 27.62 27.62

Add: Transfer from share forfeiture account 0.02 -
Add: On account of sale of subsidiary - -
Capital redemption Reserve 53.88 53.88
Debenture redemption Reserve

Less: Transfer to retained earnings on account of redemption (109.47) -
Less: Transfer to general reserve on account of redemption - (93.44)
General reserve
Add: Transfer from debenture redemption reserve - 93.44
Other comprehensive income

Opening balance (4.83) (2.41)
Add: Other comprehensive income / (loss) for the year (net of tax) (4.74) (2.32)
Add: Share of other comprehensive income from associates (net of tax) 0.25 (0.10)
Closing balance (9.32) (4.83)
Retained earnings
Opening balance 8,196.85 6,944.52
Add: Profit for the current year 2,512.27 2,575.68
Add / Less: Appropriations
Transfer to statutory reserve as per Section 45-IC of The RBI Act, 1934 (500.38) (514.00)
Transfer to general reserve - (257.00)
Transfer to/from debenture redemption reserve (235.79) (251.47)
Interim dividend (113.44) (113.44)
Tax on interim dividend (23.32) (23.32)
Final dividend (158.82) (136.14)
Tax on final dividend (32.64) (27.98)
Total appropriations (1,314.58) (1,323.35)
Retained earnings 9,394.54 8,196.85
Total 17,915.43 15,735.85
Nature and purpose of reserves
Securities premium account: The amount received in excess of face value of the equity shares is recognised in Securities
premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and
nominal value of share is accounted as securities premium. 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.
Capital reserve: Capital reserve is the excess of net assets taken over cost of consideration paid during amalgamation.

31 Other Equity (Contd.)
Capital redemption reserve: The Company has recognised Capital redemption reserve on redemption of non-convertible
redeemable preference shares from its retained earnings. The amount in Capital redemption reserve is equal to nominal
amount of the non-convertible redeemable preference shares redeemed. The Company may issue fully paid up bonus
shares to its members out of the capital redemption reserve.
Debenture redemption reserve:
(1) Pursuant to Section 71 of the Companies Act, 2013 and circular 04/2013, read with notification issued date June 19,
2016 issued by Ministry of Corporate Affairs, the Company is required to transfer 25% of the value of the outstanding
debentures issued through public issue as per the present SEBI (Issue and Listing of Debt Securities) Regulation,
2008 to Debenture redemption reserve (DRR) and no DRR is required in case of privately placed debenture. Also the
Company is required before 30th day of April of each year to deposit or invest, as the case may be, a sum which shall
not be less than 15% of the amount of its debenture issued through public issue maturing within one year from the
Balance sheet date.
(2) As per the notification G.S.R. 574(E) dated August 16, 2019, the Ministry of Corporate Affairs has amended the
Companies (Share Capital & Debentures) Rules, DRR need not be created for debentures issued by a Non-Banking
Finance Company subsequent to the notification date. The Company has not created DRR on public issue of non-
convertible debentures issued after the date of said notification.
(3) In respect of the debentures issued through public issue, the Company has created DRR of Rs. 345.26 crores (March
31, 2019: Rs. 251.47 crores). The Company subsequent to the year end has deposited a sum of Rs. 15.84 crores (March
31, 2019: Rs. 70.00 crores) in the form of fixed deposits with scheduled banks, representing 15% of the debenture
issued through public issue, which are due for redemption within one year from the balance sheet date.
(4) On redemption of the debentures for which the DRR is created, the amounts no longer necessary to be retained in
this account need to be transferred to the Retained earnings.
General reserve: Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of
net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies
Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.
Statutory reserve: Every year the Company transfers a of sum of not less than twenty per cent of net profit of that year as
disclosed in the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.
The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(1) in The
Reserve Bank of India Act, 1934:
(1) Every non-banking financial Company (NBFC) shall create a reserve fund and transfer therein a sum not less than
twenty per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is
declared.
(2) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be
specified by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty-one
days from the date of such withdrawal:
Provided that the RBI may, in any particular case and for sufficient cause being shown, extend the period of twenty-one
days by such further period as it thinks fit or condone any delay in making such report.
(3) Notwithstanding anything contained in sub-section (1), the Central Government may, on the recommendation of
the RBI and having regard to the adequacy of the paid-up capital and reserves of a NBFC in relation to its deposit
liabilities, declare by order in writing that the provisions of sub-section (1) shall not be applicable to the NBFC for
such period as may be specified in the order:
Provided that no such order shall be made unless the amount in the reserve fund under sub-section (1) together with the
amount in the share premium account is not less than the paid-up capital of the NBFC.
Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to statutory
reserve, debenture redemption reserve, general reserve, dividends distributions paid to shareholders and transfer from
debenture redemption reserve.

(Rs. in crores)
On finan- On finan- Total On finan- On finan- Total
cial assets cial assets cial assets cial assets
measured at classified at measured at classified at
amortised fair value amortised fair value
cost through cost through
Particulars profit or loss profit or loss
32 Interest income
Interest on loans 15,690.72 - 15,690.72 14,945.10 - 14,945.10
Interest income from 214.53 1.00 215.53 182.27 0.98 183.25
investments
Interest on deposits with
banks
- Margin money deposit 208.75 - 208.75 159.78 - 159.78
- Deposits with banks 66.95 - 66.95 4.08 - 4.08
Other interest income
- delayed payments by 60.52 - 60.52 33.88 - 33.88
customers
- unwinding of security 3.05 - 3.05 0.46 - 0.46
deposit
- direct assignment 21.94 - 21.94 9.14 - 9.14
Total 16,266.46 1.00 16,267.46 15,334.71 0.98 15,335.69
(Rs. in crores)
33 Fee and commission income
Income from loan related services 73.53 55.30
Income from commission services- life insurance 20.39 23.67
Income from commission services- general insurance 63.58 40.80
Income from commission services- others 37.47 6.83
Total 194.97 126.60
Revenue from contracts with customers

Set out below is the revenue from contracts with customers and reconciliation to statement of profit and loss
(Rs. in crores)
Type of services or service
Fee and commission income 194.97 126.60
Geographical markets
India 194.97 126.60
Outside India - -
Timing of revenue recognition
Services transferred at a point in time 194.97 126.60
Services transferred over time - -
Total revenue from contracts with customers 194.97 126.60

33 Fee and commission income (Contd.)
Contract balance
(Rs. in crores)
As at As at
Trade receivables 10.50 8.48
Contract assets - -
The Company does not have any contract assets or liability, hence disclosures related to it has not been presented.
(Rs. in crores)
34 Net gain/ (loss) on fair value changes
(A) Net gain/ (loss) on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments - -
- Derivatives - -
- Others - -
(ii) On financial instruments designated at fair value through profit or loss - -
(B) Others:
- Investment in shares, venture capital fund and mutual funds (0.87) 0.52
- Derivatives (5.88) (3.10)
Total Net gain/(loss) on fair value changes (C ) (6.75) (2.58)
Fair value changes:

- Realised - -
- Unrealised (6.75) (2.58)
Total Net gain/(loss) on fair value changes(D) (6.75) (2.58)
(Rs. in crores)
35 Other operating income
Bad debt recovery 80.73 24.17
Short term capital gain on sale of mutual funds and certificate of deposits 18.79 37.48
Total 99.52 61.65
(Rs. in crores)
36 Other income
Interest on income tax refund 5.80 6.66
Profit on sale of assets 1.17 -
Miscellaneous income 13.30 20.85
Total 20.27 27.51

(Rs. in crores)
37 Finance costs
On financial liabilities measured at amortised cost
Interest on deposits 973.80 841.66
Interest on borrowings (other than debt securities)
- Loans from banks 1,251.44 1,392.08
- Loans from institutions and others 217.98 298.06
- External commercial borrowings 461.83 151.45
- Interest paid on securitisation 1,743.54 1,320.14
Interest on debt securities
- Debentures 1,950.39 2,257.32
- Senior secured notes 214.37 227.55
- External commercial bond 656.82 27.91
- Commercial paper 104.50 445.20
Interest on subordinated liabilities 661.86 549.89
Other interest expense
- Interest on lease liability 33.73 -
Total 8,270.26 7,511.26
(Rs. in crores)
38 Fee and commission expense
Brokerage 9.23 14.78
Professional charges-resource mobilisation 29.29 24.25
Processing charges on loans 1.89 2.20
Professional charges on securitisation 16.47 20.96
Total 56.88 62.19
(Rs. in crores)
39Impairment of financial instruments
On financial instruments measured at amortised cost
Loans (refer note 62) 2,748.87 2,450.51
Investments 42.22 (0.06)
Others
Undrawn commitments 4.39 6.71
Other assets (0.60) (74.90)
Total 2,794.88 2,382.26


39 Impairment of financial instruments (Contd.)
The table below shows the ECL charges on financial instruments for the year recorded in the statement of profit and
loss based on evaluation stage:
Year ended March 31, 2020 (Rs. in crores)
Stage 1 Stage 2 Stage 3 approach
Impairment of financial
39
instruments
Loans and advances to customers 1,088.82 (20.86) 1,680.91 - 2,748.87
Debt instruments measured at amortised cost 23.78 18.44 - - 42.22
Others - - - (0.60) (0.60)
Total impairment loss 1,116.99 (2.42) 1,680.91 (0.60) 2,794.88
Year ended March 31, 2019

(Rs. in crores)
approach
Stage 1 Stage 2 Stage 3
Loans and advances to customers 478.90 381.55 1,590.06 - 2,450.51
Debt instruments measured at amortised cost - - - (0.06) (0.06)
Others - - - (74.90) (74.90)
Total impairment loss 485.61 381.55 1,590.06 (74.96) 2,382.26
(Rs. in crores)
40 Employee benefits expenses
Salaries, other allowance and bonus 926.57 814.24
Contribution to provident and other funds 53.72 46.37
Staff welfare expenses 24.99 17.88
Gratuity expenses 5.54 4.57
Total 1,010.82 883.06
(Rs. in crores)
41 Depreciation, amortisation and impairment
Depreciation of tangible assets 48.62 41.94
Amortisation of intangible assets 1.26 1.03
Lease depreciation 91.17 -
Total 141.05 42.97

(Rs. in crores)
42 Other expenses
Rent 9.88 105.50
Rates and taxes 2.56 11.55
Energy costs 21.08 18.29
Repairs and maintenance 56.76 45.79
Communication costs 49.17 49.05
Printing and stationery 19.33 13.62
Advertisement and publicity 14.27 15.70
Director’s fees, allowances, and expenses 0.66 0.65
Auditor fees and expenses
As Auditor:
- Audit fees 0.88 0.84
- Tax audit fees 0.09 0.09
- Out of pocket 0.04 0.06
In any other manner:
- Certification 0.08 0.04
Legal and professional charges 58.18 45.82
Other expenditure:
Travelling and conveyance 123.22 127.54
Business promotion 47.71 43.72
Outsourcing expenses 75.99 42.17
Royalty 180.75 169.45
Insurance 1.38 2.36
Bank charges 43.18 52.54
Loss on sale of fixed assets (net) - 0.51
Service charges 45.67 43.49
CSR expenses [Refer note 60] 53.16 40.06
Miscellaneous expenses 59.16 65.23
Total 863.32 894.07
43 Income Tax
The components of income tax expense for the year ended March 31, 2020 and March 31, 2019 and are:
(Rs. in crores)
Current tax 921.20 1,346.37
Deferred tax relating to origination and reversal of temporary differences 14.79 (22.27)
Total tax charge 936.83 1,214.28
Current tax 922.04 1,236.55
Deferred tax 14.79 (22.27)


Reconciliation of the total tax charge:

The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been
charged at Indian corporate tax rate. During the year, the Company has exercised the option permitted under section
115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly,
the Company had recognised and remeasured Provision for Income Tax and Deferred Tax based on the rate prescribed
in the said section. Accordingly, total benefit derived by the Company on adoption of new tax rate is Rs. 357.44 crores in
current tax and reversal of Rs. 21.18 crores in deferred tax asset for the year ended March 31, 2020.
A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the year
ended March 31, 2020 and March 31, 2019 is, as follows:
(Rs. in crores)
Accounting profit before tax 3,438.67 3,778.27
At India’s statutory income tax rate of 25.168% (2019: 34.944%) 865.44 1,320.28
Income subject to tax at special rate
Long term capital gain on sale of property (0.07) -
Income not subject to tax
Others - (11.51)
Non-deductible expenses
Corporate social responsibility expenditure not allowable for tax purpose 13.38 0.55
Deduction under chapter VIA of the Income Tax Act, 1961 (section 80G) - 6.37
Reversal of deferred tax no longer required 26.25 -
Reversal of deferred tax asset on account of adoption of new Income Tax rate 21.18 -
Others 9.81 8.41
Income tax expense reported in the statement of profit and loss 936.83 1,214.28
The effective income tax rate for March 31, 2020 is 27.24% (March 31, 2019: 32.14%).
Deferred tax
The following table shows deferred tax recorded in the balance sheet and changes recorded in the income tax expense:
(Rs. in crores)
Expenses allowable for tax purposes when paid 25.45 - - -
Reversal of deferred tax no longer required - - 26.25 -
Fair valuation of derivative financial instrument - 1.48 - -
Right-of-use assets 8.80 - (4.78) -
Reversal of deferred tax asset on account of adoption - - 21.18 -
of new Income Tax rate
Other temporary differences 5.02 - (4.45) -
Total 78.19 15.69 14.79 (1.59)

(Rs. in crores)
Expenses allowable for tax purposes when paid 35.34 - 1.25 -
EIR impact on debt instrument in the nature of 36.44 - 24.68 -
advances measured at amortised cost
Fair valuation of derivative financial instrument - 2.06 (1.08) -
Other temporary differences 6.23 0.02 (3.48) -
Total 115.69 39.99 (22.27) (1.24)
Amounts recognised in respect of current tax / deferred tax directly in equity:

(Rs. in crores)
As at As at
Amounts recognised in respect of current tax / deferred tax directly in equity - -
Tax losses
(Rs. in crores)
As at As at
Unused tax losses for which no deferred tax asset has been recognised - -
44 Earnings per share

Basic earnings per share (EPS) is calculated by dividing the net profit for the year attributable to equity holders of Company
by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit attributable to equity holders of Company (after adjusting for interest
on the convertible preference shares and interest on the convertible bond, in each case, net of tax) by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that would be
issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

Net Profit after tax as per Statement of Profit and Loss (Rs. in crores) (A) 2,512.27 2,575.68
Weighted average number of equity shares for calculating basic EPS (in crores) (B) 22.69 22.69
Weighted average number of equity shares for calculating diluted EPS (in crores) (C) 22.69 22.69
Basic earnings per equity share (in Rupees) (face value of Rs. 10/- per share) (A) / (B) 110.73 113.52
Diluted earnings per equity share (in Rupees) (face value of Rs. 10/- per share) (A) / (C) 110.73 113.52

45 Investment in associates and structured entities

Associate of the Company is:
Name of the associate Country of Principal place Principal activities % equity % equity
incorporation of business interest interest
March March
31, 2020 31, 2019
Shriram Automall India India New Delhi Market leader in physical 44.56% 44.56%
Limited (SAMIL) bidding for acquisition and
disposal of pre-owned vehicles
and equipment.
The Company has recognised its investment in associate under equity method and not adjusted to fair value at the end of
each reporting period.
The Company’s share in the associate is as follows:
(Rs. in crores)
(a) share in profit or loss from continuing operations. 10.43 11.69
(b) share in post-tax profit or loss from discontinued operations. - -
(c) share in other comprehensive income. 0.25 (0.10)
(d) share in total comprehensive income. 10.68 11.59
46 Retirement benefit plan
a) Defined contribution plan

A defined contribution plan is a pension plan under which the Company pays fixed contributions; there is no legal
or constructive obligation to pay further contributions. The assets of the plan are held separately from those of the
Company in a fund under the control of trustees.
The Company makes Provident fund and Employee State Insurance Scheme contributions which are defined
contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company recognised Rs. 41.06 crores (March 31, 2019: Rs.
31.96 crores) for Provident fund contributions and Rs. 12.54 crores (March 31, 2019: Rs. 14.30 crores) for Employee
State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by
the Company are at rates specified in the rules of the schemes.
b) Defined benefit plan
Gratuity
The Company has a defined benefit gratuity plan (funded). The gratuity plan is governed by the Payment of Gratuity Act,
1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits
provided depends on the member’s length of service and last drawn salary. The fund is managed by third party fund managers.
Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-
liability matching strategy and investment risk management policy. This includes employing the use of annuities and
longevity swaps to manage the risks. The Board of Trustees decides contribution to be made by the Company based on
the results of this annual review. The trust is in process of investing entire funds in government securities through third
party fund managers and as on March 31, 2020, 82 % funds are invested in government securities and balance 18%
funds are invested in other equity and debt instruments. The Board of Trustees aim to keep annual contributions of the
Company relatively stable at a level such that no plan deficits (based on valuation performed) will arise.


e following tables summarises the components of net benefit expense recognised in the statement of profit and
Th
loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.
Amount recognised in the statement of profit and loss in respect of the defined benefit plan are as follows :
(Rs. in crores)
Amounts recognised in statement of profit and loss in respect of defined
benefit plans are as follows :
Interest expense 3.78 3.22
Interest Income (3.68) (3.37)
Components of defined benefit costs recognised in profit or loss (A) 5.55 4.57
Remeasurement of gains/(losses) in other comprehensive income :
Return on plan assets (excluding amounts included in net interest expense) (1.18) 0.74
Actuarial changes arising from changes in demographic assumptions - -
Actuarial changes arising from changes in financial assumptions 4.80 0.56
Experience adjustments 2.71 2.26
Components of defined benefit costs recognised in other comprehensive 6.33 3.56
income (B)
Total (A+B) 11.88 8.13
Movement in the present value of the defined benefit obligation are as follows :
(Rs. in crores)
As at As at
Change in the obligation during the year ended
Present value of defined obligation at the beginning of the year 49.43 41.30
Expenses recognised in statement of profit and loss :
Interest expense/(income) 3.78 3.22
Recognised in other comprehensive income remeasurement gains/(losses) 7.51 2.83
Liability transferred in/acquisitions - 0.09
Present value of defined obligation at the end of the year 63.25 49.43
Change in the Fair value of plan assets :

(Rs. in crores)
As at As at
Fair value of plan assets at the beginning of the year 48.15 43.23
Interest income 3.68 3.37
Contributions by the employer 9.79 5.02
Return on plan assets excluding interest income 1.18 (0.74)
Fair value of plan assets at the end of the year 59.88 48.15


Calculation of benefit liability/(asset) :
(Rs. in crores)
As at As at
Defined benefit obligation 63.25 49.43
Fair value of plan assets 59.88 48.15
Benefit liability 3.37 1.28
The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below:
As at As at
Expected return on plan assets 6.56% 7.64%
Rate of employee turnover For service 4 For service 4 years
years and below and below 20.00%
20.00% p.a. and p.a. and for service
for service 5 5 years and above
years and above 7.50% p.a.
7.50% p.a.
Mortality rate during employment Indian Assured Indian Assured
Lives mortality Lives mortality
(2006-08) (2006-08)
Mortality rate after employment N.A. N.A.
Investments quoted in active markets:
(Rs. in crores)
As at As at
Investment funds 59.88 48.15
Total 59.88 48.15

(Rs. in crores)
Impact on defined Impact on defined
benefit obligation benefit obligation
Assumptions Sensitivity level March 31, 2020 March 31, 2019
Discount rate 1% increase (4.47) (3.32)
1% decrease 5.14 3.81
Future salary increases 1% increase 5.10 3.81
1% decrease (4.51) (3.37)
Attrition rate 1% increase 0.49 0.72
1% decrease (0.57) (0.82)

(Rs. in crores)
As at As at
Expected payment for future years March 31, 2020 March 31, 2019
Within the next 12 months (next annual reporting period) 6.35 4.99
Beyond 10 years 64.26 56.02
Total expected payments 117.97 100.95
The Company expects to contribute Rs. 10.09 crores to the fund in the next financial year.
The weighted average duration of the defined benefit obligation as at March 31, 2020 is 9 years (March 31, 2019: 9 years)
Asset liability matching strategies
The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules,
1962, this generally reduces ALM risk.
c) Compensated Absences
The principal assumptions used in determining obligations for the Company are shown below:
(Rs. in crores)
As at As at
Rate of employee turnover
Service 4 years and below 20.00% 20.00%
Service 5 years and above 7.50% 7.50%
Indian Assured Indian Assured
Mortality Lives mortality Lives mortality
(2006-08) (2006-08)
(Rs. in crores)
Expenses recognised in statement of profit and loss 17.94 14.52
The Company has not funded its compensated absences liability and the same continues to remain as unfunded as at
March 31, 2020.
The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.
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.

47 Maturity analysis of assets and liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or
settled.
(Rs. in crores)
Within 12 After 12 Total Within 12 After 12 Total
Particulars months months months months
Assets
Financial assets
Cash and cash equivalents 3,088.99 - 3,088.99 1,029.14 - 1,029.14
Bank balance other than above 4,204.15 21.78 4,225.93 2,233.05 719.28 2,952.33
Derivative financial instruments 758.73 - 758.73 21.72 - 21.72
Receivables
(I) Trade receivables 10.50 - 10.50 8.48 - 8.48
(II) Other receivables 5.64 - 5.64 19.94 - 19.94
Loans 28,287.31 73,944.32 102,231.63 36,655.28 60,096.21 96,751.49
Investments 361.47 2,574.16 2,935.63 2,011.10 2,114.44 4,125.54
Other financial assets - 45.15 45.15 - 36.88 36.88
Non-financial Assets
Current tax asset - 249.10 249.10 - 106.58 106.58
Deferred tax assets (net) - 62.50 62.50 - 75.70 75.70
Investment property - 2.03 2.03 - 2.06 2.06
Property, plant and equipment - 149.88 149.88 - 143.46 143.46
Right-of-use assets - 327.84 327.84 - - -
Other intangible assets - 2.67 2.67 - 1.97 1.97
Other non-financial assets 44.10 125.47 169.57 62.00 81.66 143.66
Total assets 36,760.89 77,504.90 114,265.79 42,040.71 63,378.24 105,418.95
Liabilities
Financial Liabilities
Derivative financial liabilities - - - 83.42 - 83.42
Payables
(I) Trade payables
(i) total outstanding dues of micro 0.40 - 0.40 - - -
small enterprises
(II) Other payables
(i) total outstanding dues of micro - - - - - -
small enterprises
Debt securities 6,484.83 27,782.13 34,266.96 13,044.83 21,136.93 34,181.76
Borrowings (other than debt securities) 16,550.38 25,924.22 42,474.60 17,820.26 19,369.04 37,189.30
Deposits 2,857.28 9,102.84 11,960.12 2,479.79 7,861.67 10,341.46
Subordinated liabilities 1,114.07 4,556.00 5,670.07 670.20 5,531.68 6,201.88
Other financial liabilities 787.82 124.50 912.32 1,001.43 15.05 1,016.48
Lease liabilities 80.97 281.84 362.81 - - -
Non-financial Liabilities
Current tax liabilities (net) 102.02 - 102.02 102.97 - 102.97
Provisions 112.27 34.06 146.33 107.57 25.69 133.26
Other non-financial liabilities 83.28 - 83.28 - 69.49 69.49
Total Liabilities 28,317.89 67,805.59 96,123.48 35,446.65 54,009.55 89,456.20
Net 8,443.00 9,699.31 18,142.31 6,594.06 9,368.69 15,962.75

48 Change in liabilities arising from financing activities
(Rs. in crores)
Debt securities 34,181.76 (831.77) - - 916.97 34,266.96
37,189.30 5,139.66 - - 145.64 42,474.60
securities)
Deposits 10,341.46 1,619.31 - - (0.65) 11,960.12
Subordinated liabilities 6,201.88 (573.50) - - 41.69 5,670.07
Lease liabilities - 110.46 - - 252.35 362.81
Total liabilities from 87,914.40 5,464.16 - - 1,356.00 94,734.56
(Rs. in crores)
Debt securities 32,432.62 1,984.43 - - (235.29) 34,181.76
36,108.54 402.56 - - 678.20 37,189.30
securities)
Deposits 8,597.75 1,733.21 - - 10.50 10,341.46
Subordinated liabilities 4,991.94 1,431.63 - - (221.69) 6,201.88
Total liabilities from 82,130.85 5,551.83 - - 231.72 87,914.40
49 Contingent liabilities, commitments and leasing arrangements

(A) Contingent liabilities
(Rs. in crores)
As at As at
a. In respect of Income tax demands where the Company and its associate 133.80 78.79
have filed appeal before various authorities
b. VAT demand where the Company and its associate have filed appeal 117.54 125.16
before various appellates
c. Service tax demands where the Company and its associate have filed 326.21 198.53
appeal before various authorities
d. Penalty levied for Contravention of provisions of Section 6(3)(b) of 5.00 -
FEMA, 1999 read with Regulation 4 of Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident outside India)
Regulations, 2000
Total 582.55 402.48
Future cash outflows in respect of above are determinable only on receipt of judgements /decisions pending with
various forums/authorities. It is not practicable for the Company and its associate to estimate the timings of the
cashflows, if any, in respect of the above pending resolution of the respective proceedings. The Company and its
associate do not expect any reimbursement in respect of the above contingent liabilities. The Company and its
associate are of the opinion that above demands are not sustainable and expects to succeed in its appeals. The
management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the
financial position and results of operations of the Company and its associate.
Disputed income tax demands are on account of royalty, disallowance of ESOP expenses, 14A, derivatives etc.

49 Contingent liabilities, commitments and leasing arrangements (Contd.)
(B) Commitments not provided for

(Rs. in crores)
As at As at
a. Estimated amount of contracts remaining to be executed on capital 4.15 5.78
account, net of advances
b. Commitments related to loans sanctioned but undrawn 311.87 471.92
(C) Lease arrangements
As a lessee
Lease :
Future minimum lease payments under non-cancellable leases as at March 31, 2019 are as follows:
(Rs. in crores)
As at
Within one year 30.95
After one year but not more than five years 95.17
More than five years 29.99
Total 156.11
Effective April 01, 2019, the Company adopted Ind AS 116 “Leases” and applied the same to the lease contracts
existing on April 01, 2019 using the modified retrospective approach, recognising right-of-use assets and adjusted
lease liability. As per Ind AS 116, lease commitments are recognised as lease liability and need not be disclosed under
contingent liabilities and commitments.

50 Related party DISCLOSURES
Relationship Name of the party
I Promoter : Shriram Capital Limited
II Promoter group : Shriram Ownership Trust

Shriram Financial Ventures (Chennai) Private Limited
Shriram Value Services Limited
Novac Technology Solutions (P) Limited
Shriram Fortune Solutions Limited
Shriram General Insurance Company Limited
Shriram Insight Share Brokers Limited
Shriram Life Insurance Company Limited
Shriram Asset Management Company Limited
Shriram Financial Products Solutions (Chennai) Private Limited
Insight Commodities and Futures Private Limited
Shriram Credit Company Limited
Shriram Overseas Investments Private Limited
Shriram Wealth Advisors Limited
Bharath Investments Pte. Ltd., Singapore
SGI Philippines General Insurance Co. Inc.
Novac Digital Service Private Limited (from May 20, 2019)
III Associates : Shriram Automall India Limited (SAMIL)

Cartradeexchange Solutions Private Limited
Adroit Inspection Service Private Limited
Augeo Asset Management Private Limited (w.e.f. January 08, 2020)
IV Key Management Personnel : Mr. Umesh Revankar, Managing Director & CEO
Mr. Amitabh Chaudhry (upto October 25, 2018)
Mr. S. Lakshminarayanan
Mrs. Kishori Udeshi
Mr. S. Sridhar
Mr. Sumatiprasad M Bafna (upto March 31, 2019)
Mr. Pradeep Kumar Panja (from October 25, 2018)
Mr. D. V. Ravi
Mr. Puneet Bhatia
Mr. Ignatius Michael Viljoen (from May 14, 2019)
Mr. Gerrit Lodewyk Van Heerde (upto May 08, 2019)
V Relatives of Key Management Personnel : Mrs. Suchita U. Revankar (spouse of Managing Director & CEO)
Mr. Shreyas U. Revankar (son of Managing Director & CEO)
Mrs. Geeta G. Revankar (mother of Managing Director & CEO)
Mr. Anil G. Revankar (brother of Managing Director & CEO)
Mr. Shirish U. Revankar (son of Managing Director & CEO)
VI Employees’ benefit plan Shriram Transport Finance Co. Ltd. Employees Group Gratuity
Assurance Scheme

280
Summary of related party transactions
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Payments/Expenses
Payment to key management - - - - - - - - 1.76 1.26 - - 1.76 1.26
personnel
Royalty - - 169.69 155.46 - - - - - - - - 169.69 155.46
Service charges 41.90 39.90 - - - - - - - - - - 41.90 39.90
I.T & BPO charges - - 68.88 38.00 - - - - - - - - 68.88 38.00

Rent 0.78 - 0.02 0.02 7.04 4.44 - - - - - - 7.84 4.46
Business mobilisation expenses - - - - 0.04 1.47 - - - - - - 0.04 1.47
Other administrative expenses 0.04 - - - 11.11 0.82 - - - - - - 11.15 0.82
Notes
Insurance premium - - 8.91 7.60 - - - - - - - - 8.91 7.60

Commission - - 34.97 41.74 - - - - - - - - 34.97 41.74
Sales promotion - - 1.92 1.61 - - - - - - - - 1.92 1.61
Valuation charges - - - - 0.09 - - - - - - - 0.09 -
Interest 0.26 0.38 53.74 52.66 2.97 2.36 - - 0.33 0.17 0.01 0.01 57.32 55.59
Equity dividend 71.17 65.09 - - - - - - - - 0.00 0.00 71.17 65.09
Non-convertible debenture matured - - 80.11 1.60 - - - - - - - 0.01 80.11 1.61
Fixed deposit matured - - 14.00 - - - - - - - 0.01 0.03 14.01 0.03
Subordinated debt matured 1.72 0.54 45.00 7.07 1.39 1.15 - - - - - 0.01 48.11 8.77
Inter corporate deposit repaid 74.00 - - - 51.50 28.35 - - - - - - 125.50 28.35
Receipts/Income
Common sharing expenses 0.01 0.01 1.17 1.16 0.65 0.52 - - - - - - 1.83 1.70
Rent & electricity 0.15 0.18 - - 4.64 4.14 - - - - - - 4.79 4.32
Other administrative expenses - - - - 0.14 2.55 - - - - - - 0.14 2.55
Commission - - 79.11 61.08 - - - - - - - - 79.11 61.08
Subordinated debt - - - 25.00 - - - - - - - - - 25.00

Non-convertible debenture - - 2.86 11.74 - - - - 0.10 2.00 - - 2.96 13.74
Fixed deposit - - 1.50 14.00 - - - - - 0.50 0.05 0.03 1.55 14.53
Unsecured loan and advances repaid - - - - 14.44 7.41 - - - - - - 14.44 7.41
Inter corporate deposit received 74.00 - - - 63.40 25.95 - - - - - - 137.40 25.95

Share capital 59.55 59.17 - - - - - - - - 0.00 0.00 59.56 59.17
Investment in equity shares - - - - 150.52 139.84 - - - - - - 150.52 139.84
receivable
Unsecured loan and advances payable - - - - 0.41 - - - - - - - 0.41 -
Rent receivable - 0.01 - 0.02 - - - - - - - - - 0.03
(Rs. in Crores)
Notes
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Commission receivable - - 9.56 7.65 - - - - - - - - 9.56 7.65
Commission payable - - - 2.62 - - - - - - - - - 2.62
Prepaid for insurance premium - - 2.84 2.15 - - - - - - - - 2.84 2.15
Outstanding expenses 10.43 10.78 44.13 43.01 - - - - - - - - 54.55 53.78
Fixed deposit - - 1.55 14.99 - - - - 1.45 1.34 0.13 0.08 3.13 16.41
Subordinated debt 0.41 3.14 422.19 470.39 2.76 2.79 - - - - - - 425.37 476.32
Non-convertible debenture - - 15.12 95.01 22.77 - - - 2.61 2.30 - - 40.50 97.30
Expenses recoverable - 0.00 - 0.21 - - - - - - - - - 0.21
Inter corporate deposit - - - - 39.42 26.38 - - - - - - 39.42 26.38
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Payments/Expenses
Employee benefits for key
management personnel
- Short term benefits - - - - - - - - 0.97 0.53 - - 0.97 0.53
- Post employment benefits - - - - - - - - 0.19 0.14 - - 0.19 0.14
Commission & sitting fee paid to
directors
- Mr. Amitabh Chaudhry - - - - - - - - 0.04 0.10 - - 0.04 0.10
- Mr. S. Lakshminarayanan - - - - - - - - 0.12 0.12 - - 0.12 0.12
forming part of the Consolidated financial statements
- Mrs. Kishori Udeshi - - - - - - - - 0.14 0.12 - - 0.14 0.12

- Mr. S. Sridhar - - - - - - - - 0.10 0.12 - - 0.10 0.12
- Mr. Sumatiprasad M. Bafna - - - - - - - - 0.09 0.11 - - 0.09 0.11
License Fees
- Shriram Ownership Trust - - 82.81 155.46 - - - - - - - - 82.81 155.46
- Shriram Value Services Limited - - 86.87 - - - - - - - - - 86.87 -
Service charges to Shriram Capital 41.90 39.90 - - - - - - - - - - 41.90 39.90

Limited
Voice Call services
281
282
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Novac Technology Solutions - - 7.43 - - - - - - - - - 7.43 -
(P) Ltd.
I.T & BPO charges to Novac - - 40.18 - - - - - - - - - 40.18 -
Technology Solutions (P) Ltd.
Rent

Company Limited
Notes
Business mobilisation expenses - - - - - 0.04 1.47 - - - - - - 0.04 1.47

Insurance premium
Limited
Company Limited
Commission
Limited
Sales promotion
Limited
Interest on Inter corporate Deposit

Valuation charges paid to - Adroit - - - - 0.09 - - - - - - - 0.09 -

Inspection Service Private Limited
Interest on fixed deposit
personnel
- Shriram Asset management - - 0.05 - - - - - - - - - 0.05 -
Company Limited
(Rs. in Crores)
Notes
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Interest on subordinated debt
personnel
Company Limited
Limited
Company Limited
Interest on non-convertible
debenture

- Mr. S. Sridhar - - - - - - - - 0.01 0.00 - - 0.01 0.00
personnel
Limited
Company Limited
Company Limited
Limited
Equity dividend

personnel
Non-convertible debenture matured
personnel
Limited

Company Limited
Limited
Fixed deposit matured
283
284
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
personnel
Subordinated debt matured
-Relative of key management - - - - - - - - - - - 0.01 - 0.01
personnel

Notes

Company Limited
Company Limited
received - Shriram Automall India
Limited
Inter corporate deposit repaid
TOTAL 189.87 105.91 477.24 305.76 74.15 46.46 9.79 5.01 2.10 1.43 0.02 0.06 753.17 464.63
Receipts/Income
Recovery of common sharing
expenses
Company Limited
Limited
- Adroit Inspection Service Private - - - - 0.07 0.00 - - - - - - 0.07 0.00
Limited
Rent & electricity
Commission
(Rs. in Crores)
Notes
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Company Limited
Limited
Subordinated debt
Limited
- Mr. Umesh Revankar - - - - - - - - - 2.00 - - - 2.00
- Mr. Pradeep Kumar Panja - - - - - - - - 0.10 - - - 0.10 -

Company Limited
Limited
Fixed deposit
- Key management personnel - - - - - - - - - 0.50 - - - 0.50
personnel
Company Limited
repaid by
Inter corporate deposit

TOTAL 74.16 0.19 84.63 112.98 83.28 40.63 - - 0.10 2.50 0.05 0.03 242.22 156.34

285
286
(Rs. in Crores)
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
Share capital
personnel

- Shriram Financial Ventures - - 0.05 - - - - - - - - - 0.05 -
(Chennai) Private Limited
Notes
Investment in equity shares

receivable
- Shriram Automall India Limited - - - - - 0.58 - - - - - - - 0.58
payable
Rent receivable
Company Limited
Commission receivable
Company Limited
Limited
Commission payable
- Shriram Financial Products - - - 0.05 - - - - - - - - - 0.05
Limited
Prepaid for insurance premium

Company Limited
Limited
Outstanding expenses
- Shriram Ownership Trust - - - 41.83 - - - - - - - - - 41.83
- Novac Technology Solutions (P) - - 1.80 - - - - - - - - - 1.80 -
Limited
(Rs. in Crores)
Notes
Particulars 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019
- Shriram Financial Products - - 0.31 - - - - - - - - - 0.31 -
Limited
Company Limited
Fixed deposit
personnel
Company Limited
- Mr. S. Sridhar - - - - - - - - 0.12 0.11 - - 0.12 0.11
Limited
- Shriram General Insurance - - - 21.67 - - - - - - - - - 21.67
Company Limited
Company Limited
Limited
Subordinated debt

Limited
Company Limited
Expenses recoverable
Limited
Inter corporate deposit received from - - - - 39.42 26.38 - - - - - - 39.42 26.38

287
51 Capital management
The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued
equity capital, share premium and all other equity reserves attributable to equity holders of the Company.
The primary objectives of the Company’s capital management policy are to ensure that the Company complies with
externally imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support
its business and to maximise shareholder value.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions
and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes
have been made to the objectives, policies and processes from the previous years except those incorporated on account of
regulatory amendments. . However, they are under constant review by the Board.
52 Fair value measurement

52.01 Valuation principle
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair
values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained in
Note 6.1 (xiii).
52.02: Fair value hierarchy of assets and liabilities

The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:
(Rs. in crores)
recurring basis
Cross currency interest rate swaps - 319.50 - 319.50
Interest rate caps - 3.91 - 3.91
Mutual funds - 3.02 - 3.02
Total financial assets held for trading - 4.06 3.36 7.42
Total assets measured at fair value on - 762.79 3.36 766.15
a recurring basis
non-recurring basis
for sale
Total assets measured at fair value - 762.79 3.36 766.15

(Rs. in crores)
Liabilities measured at fair value on Level-1 Level-2 Level-3 Total
a recurring basis
Liabilities measured at fair value on a
non-recurring basis
held for sale
Total liabilities measured at fair value - - - -
(Rs. in crores)
recurring basis
Mutual funds - 323.82 - 323.82
Certificate of deposits - 1,231.71 - 1,231.71
Total financial assets held for trading - 1,556.50 3.58 1,560.08
Total assets measured at fair value on - 1,578.22 3.58 1,581.80
a recurring basis
non-recurring basis
for sale
Total assets measured at fair value - 1,578.22 3.58 1,581.80
(Rs. in crores)
recurring basis
Total financial liabilities measured at - 83.42 - 83.42

(Rs. in crores)
non-recurring basis
held for sale
Total liabilities measured at fair value - 83.42 - 83.42
52.03: Valuation techniques
Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived
at as under:
Equity instruments
Investment in units of mutual funds are measured based on their published net asset value (NAV), taking into account
redemption and/or other restrictions. Such instruments are generally Level 2. Equity instruments in non-listed entities are
initially recognised at transaction price and re-measured (to the extent information is available) and valued on a case-by-
case and classified as Level 3.
Derivative Financial Instruments
Foreign exchange contracts include foreign exchange forward and swap contracts, interest rate swaps and over- the-
counter foreign exchange options. These instruments are valued by either observable foreign exchange rates, observable
or calculated forward points and option valuation models. With the exception of contracts where a directly observable
rate is available which are disclosed as Level 1, the Company classifies derivative financial instruments as Level 2 financial
instruments when no unobservable inputs are used for their valuation or the unobservable inputs used are not significant
to the measurement (as a whole).
Certificate of deposits (CDs)
Certificate of Deposits are short-term financial instruments issued by Banks. Financial Benchmark India Private Ltd (FBIL)
has developed the FBIL- CD, a new benchmark for the money market based on traded CDs reported on the FIMMDA
Trade Reporting and Confirmation System (FTRAC) platform of The Clearing Corporation of India Ltd (CCIL). FBIL-CD
is announced for seven tenors of 14 days, 1 month, 2 months, 3 months, 6 months, 9 months and 12 months. For valuation,
the Company uses FBIL-CD benchmark and based on that benchmark the Company interpolates and calculates CD prices
corresponding to their residual maturities and such instruments are classified as Level 2.
52.05: Transfer between fair value hierarchy levels
During the year there were no transfers between level 1 and level 2. Similarly, there were no transfers from or transfer to
level 3.
52.06: Movements in Level 3 financial instruments measured at fair value
The following tables show a reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
which are recorded at fair value. Transfers from Level 3 to Level 2 occur when the market for some securities became more
liquid, which eliminates the need for the previously required significant unobservable valuation inputs. Since the transfer,
these instruments have been valued using valuation models incorporating observable market inputs. Transfers into Level 3
reflect changes in market conditions as a result of which instruments become less liquid. Therefore, the Company requires
significant unobservable inputs to calculate their fair value.

The following tables show the reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
measured at fair value:
(Rs. in crores)
Equity instruments
As at As at
Purchase - -
Sales - -
Issuances - -
Settlements - -
Transfers into level 3 - -
Transfers from level 3 - -
Net interest income, net trading income and other income - -
Other comprehensive income - -
Unrealised gains and losses related to balances held at the end of the year (0.22) 2.72
52.07: Impact of changes to key assumptions on fair value of level 3 financial instruments measured at fair value
The table summarises the valuation techniques together with the significant unobservable inputs used to calculate the fair
value of the Company’s level 3 assets and liabilities. The range of values indicates the highest and lowest level input used in
the valuation technique and, as such, only reflects the characteristics of the instruments as opposed to the level of uncertainty
to their valuation. Relationships between unobservable inputs have not been incorporated in this summary.
(Rs. in crores)
Particulars Fair value Valuation Significant
Level 3 assets Level 3 assets technique unobservable inputs
Equity instruments 3.36 3.58 Based on the Based on the
discounted cashflow discounted cashflow
52.08: Sensitivity of fair value measurements to changes in unobservable market data
The table below describes the effect of changing the significant unobservable inputs to reasonable possible alternatives. All
changes would be reflected in the Statement of profit and loss. Sensitivity data are calculated using a number of techniques,
including analysing price dispersion of different price sources, adjusting model inputs to reasonable changes within the
fair value methodology.
The ranges are not comparable or symmetrical as the model inputs are usually not in the middle of the favourable/
unfavourable range.
The table below shows data in relation to level 3 inputs that are already aggregated on the underlying product levels
without assuming any potential diversification effect, but including potential off-sets from economic or accounting hedge
relationships in place. The Company is of the opinion that, whilst there may be some diversification benefits, incorporating
these would not be significant to the analysis.
(Rs. in crores)
Particulars As at March 31, 2020 As at March 31, 2019
Favourable Unfavourable Favourable Unfavourable
changes 5% changes 5% changes 5% changes 5%
increase decrease increase decrease
Equity instruments based on the 3.51 3.18 3.74 3.38
discounted cashflow

52.09: 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 financial statements. This table does not include the fair values of non–financial assets
and non-financial liabilities.
(Rs. in crores)
Fair value
Financial assets:
Cash and cash equivalents 1,864.78 1,864.78 - - 1,864.78
cash equivalents
Loans 108,501.71 - - 103,070.32 103,070.32
Trade payables 143.84 - - 143.84 143.84
Other payables 1.13 - - 1.13 1.13
Debt securities 34,266.96 - 36,510.59 - 36,510.59
securities)
Deposits 11,960.12 - - 12,161.38 12,161.38
Subordinated liabilities 5,670.07 - 5,367.03 722.40 6,089.44
Other financial liabilities 912.32 - - 912.32 912.32
Lease liabilities 362.81 - - 362.81 362.81
(Rs. in crores)
Fair value
Financial assets:
Cash and cash equivalents 914.01 914.01 - - 914.01
cash equivalents
Loans 102,307.49 - - 101,248.55 101,248.55
Trade payables 133.46 - - 133.46 133.46
Other payables 2.72 - - 2.72 2.72
Debt securities 34,181.76 - 29,030.64 - 29,030.64

(Rs. in crores)
Fair value
securities)
Deposits 10,341.46 - - 9,968.68 9,968.68
Subordinated liabilities 6,201.88 - 5,492.76 1,249.58 6,742.34
Other financial liabilities 1,016.48 - - 1,016.48 1,016.48

Note:
The management assessed that cash and cash equivalents, trade receivables, trade payables, other receivables, other
payables, bank overdrafts and other financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.
52.10: Valuation methodologies of financial instruments not measured at fair value
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for
disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables.
Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts,
which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and bank
balances, Trade receivables, other receivables, balances other than cash and cash equivalents and trade payables without
a specific maturity. Such amounts have been classified as Level 2 on the basis that no adjustments have been made to the
balances in the balance sheet.
Loans and advances to customers
The fair values of loans and receivables are estimated by discounted cash flow models based on contractual cash flows using
actual yields..
Pass through certificates
These instruments include asset backed securities. The market for these securities is not active. Therefore, the Company uses
a variety of valuation techniques to measure their fair values. Expected cash flow levels are estimated by using quantitative
and qualitative measures regarding the characteristics of the underlying assets including prepayment rates, default rates
and other economic drivers such as loan-to-value ratios, emergence period estimation, indebtedness and rental income
levels. Instruments with no comparable instruments or valuation inputs are classified as Level 3.
Investment in associate at cost
Investment in associate: As per Ind AS 28 Interest in associate are recognised at cost and not adjusted to fair value at the
end of each reporting period. Cost represents amount paid for acquisition of the said investments. Loan and other similar
arrangements with subsidiaries which are probable to be settled for a fixed number of equity share of the borrower for a
fixed price are classified as equity investment. The Company assesses at the end of each reporting period, if there are any
indications that the said investments may be impaired. If so, the Company estimates the recoverable value/amount of the
investment and provides for impairment, if any i.e. the deficit in the recoverable value over cost.
Investment in government securities at amortised cost
The fair values financial assets held-to-maturity investments are estimated using a discounted cash flow model based on
contractual cash flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit
risk.
Issued debt and borrowings
The fair value of issued debt is estimated by a discounted cash flow model incorporating the Company’s own credit risk.
The Company estimates and builds its own credit spread from market-observable data such as secondary prices for its

traded debt and the credit spread on credit default swaps and traded debt of itself.
Off-balance sheet positions
Estimated fair values of off-balance sheet positions are based on discounted cash flow models, as explained above, which
incorporate the credit risk element through the discount factor.
53 Risk Management
Whilst risk is inherent in the Company’s activities, it is managed through an integrated risk management framework
including ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process
of risk management is critical to the Company’s continuing profitability and each individual within the Company is
accountable for the risk exposures relating to his or her responsibilities. The Company is exposed to credit risk, liquidity
risk and market risk. It is also subject to various operating and business risks.
53.01: Introduction and risk profile
53.01.01: Risk management structure
The Board of Directors are responsible for the overall risk management approach and for approving the risk management
strategies and principles.
The Board has constituted the Risk Management Committee which is responsible for monitoring the overall risk process
within the Company.
The Risk Management Committee has the overall responsibility for the development of the risk strategy and implementing
principles, frameworks, policies and limits. The Risk Management Committee is responsible for managing risk decisions
and monitoring risk levels.
The Chief Risk officer is responsible for implementing and maintaining risk related procedures to ensure an independent
control process is maintained. The Risk owners within each department will report to the Risk Committee.
The Risk owners are responsible for monitoring compliance with risk principles, policies and limits across the Company.
Each department has its Risk owner who is responsible for the control of risks, including monitoring the actual risk of
exposures against authorised limits and the assessment of risks.
The Company’s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also
primarily responsible for the funding and liquidity risks of the Company.
The Company’s policy is that risk management processes throughout the Company are audited annually by the Internal
Audit function, which examines both the adequacy of the procedures and the Company’s compliance with the procedures.
Internal Audit discusses the results of all assessments with management, and reports its findings and recommendations to
Risk Management Committee.
53.01.02: Risk mitigation and risk culture
As part of its overall risk management, the Company can use derivatives and other instruments to manage exposures
resulting from changes in interest rates and foreign currencies associated with foreign currency transactions.
53.01.03: Risk measurement and reporting systems
The Company’s risks are measured using a method that reflects both the expected loss likely to arise in normal circumstances
and unexpected losses, which are an estimate of the ultimate actual loss. The models make use of probabilities derived from
historical experience, adjusted to reflect the economic environment, as necessary.
The Company’s policy is to measure and monitor the overall risk-bearing capacity in relation to the aggregate risk exposure
across all risk types and activities.
Information compiled from all the departments is examined and processed in order to analyse, control and identify risks
on a timely basis. This information is presented and explained to the Risk Management Committee and the head of each
department.
The Risk Management Committee receives a comprehensive risk report once a quarter which is designed to provide all the
necessary information to assess and conclude on the risks of the Company.
It is the Company’s policy to ensure that a robust risk awareness is embedded in its organisational risk culture. Employees
are expected to take ownership and be accountable for the risks the Company is exposed to that they decide to take on.
The Company’s continuous training and development emphasises that employees are made aware of the Company’s risk
appetite and they are supported in their roles and responsibilities to monitor and keep their exposure to risk within the
Company’s risk appetite limits. Compliance breaches and internal audit findings are important elements of employees’
annual ratings and remuneration reviews.

53.01.04: Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions.
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to
focus on spreading its lending portfolio across all the states with a cap on maximum limit of exposure for a state and also
for an individual/Company.
53.02: Credit risk
Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their
contractual obligations. The Company manages and controls credit risk by setting limits on the amount of risk it is willing
to accept for individual counterparties and for geographical concentrations, and by monitoring exposures in relation to
such limits.
Credit risk is monitored by the credit department of the Company. It is their responsibility to review and manage credit
risk, including environmental and social risk for all types of counterparties. Credit risk consists of line credit managers
who are responsible for their business lines and manage specific portfolios and experts who support both the line credit
manager, as well as the business with tools like credit risk systems, policies, models and reporting.
The Company has established a credit quality review process to provide early identification of possible changes in the
creditworthiness of counterparties.
The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it
is exposed and take corrective actions.
The Company’s internal credit rating grades on days past due(dpd) basis:
Internal rating grade Internal rating description

Performing
High grade 0 dpd
Standard grade 1 to 30 dpd
Sub-standard grade 31 to 60 dpd
Past due but not impaired 61 to 90 dpd
Non-performing 90+ dpd

53.02.01: Derivative financial instruments
Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as
recorded on the balance sheet.
With gross–settled derivatives, the Company is also exposed to a settlement risk, being the risk that the Company honours
its obligation, but the counterparty fails to deliver the counter value.
53.02.02: Impairment assessment
The references below show where the Company’s impairment assessment and measurement approach is set out in this
report. It should be read in conjunction with the Summary of significant accounting policies.
The Company’s definition and assessment of default (Note 53.02.02.01).
- How the Company defines, calculates and monitors the probability of default, exposure at default and loss given default
(Notes 53.02.02.02 to 53.02.02.04)
- When the Company considers there has been a significant increase in credit risk of an exposure (Note 53.02.02.05)
- The Company’s policy of segmenting financial assets where ECL is assessed on a collective basis (Note 53.02.02.06)
- The details of the ECL calculations for stage 1, stage 2 and stage 3 assets (Note 6.1.xi)
53.02.02.01: Definition of default
The Company considers a financial instrument defaulted and therefore stage 3 (credit-impaired) for ECL calculations in
all cases when the borrower becomes 90 days past due on its contractual payments.
As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances
that may indicate unlikeliness to pay. When such events occur, the Company carefully considers whether the event should
result in treating the customer as defaulted and therefore assessed as stage 3 for ECL calculations or whether stage 2 is
appropriate. Such events include:
-The borrower requesting emergency funding from the Company.

- A material decrease in the underlying collateral value where the recovery of the loan is expected from the sale of the
collateral.
- A covenant breach not waived by the Company.
- The debtor (or any legal entity within the debtor’s Company) filing for bankruptcy application/protection.
- All the facilities of a borrower are treated as stage 3 when one of his facility becomes 90 days past due i.e. credit impaired.
- The restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise.
53.02.02.02: PD estimation process
It is an estimate of the likelihood of default over a given time horizon. PD estimation process is done based on historical
internal data available with the Company. While arriving at the PD, the Company also ensures that the factors that affects
the macro economic trends are considered to a reasonable extent, wherever necessary. Company calculates the 12 month
PD by taking into account the past historical trends of the portfolio and its credit performance. In case of assets where
there is a significant increase in credit risk, lifetime PD has been applied which is computed based on survival analysis. For
credit impaired assets, a PD of 100% has been applied.
53.02.02.03: Exposure at Default (EAD)
The exposure at default (EAD) represents the gross carrying amount of the financial instruments subject to the impairment
calculation, addressing both the ability to increase its exposure while approaching default and potential early repayments
too.
To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months for the
calculation of the 12 months ECL.
For stage 2 and stage 3 financial assets, the exposure at default is considered for events over the lifetime of the instruments.
In case of undrawn loan commitments, a credit conversion factor of 100% is applied for expected drawdown.
53.02.02.04: Loss Given Default (LGD)
LGD is an estimate of the loss arising in case where a default occurs. It is based on the difference between the contractual
cash flows due and those that the Company would expect to receive, including from the realisation of any security.
53.02.02.05: Significant increase in credit risk(SICR)
The Company continuously monitors all assets subject to ECLs in order to determine whether an instrument or a portfolio
of instruments is subject to 12 month ECL or lifetime ECL. The Company assesses whether there has been an event which
could cause a significantly increase in the credit risk of the underlying asset or the customers’ ability to pay and accordingly
change the 12 month ECL to a lifetime ECL.
In certain cases, the Company may also consider that events explained in Note 53.02.02.01 are a significant increase in
credit risk as opposed to a default. Regardless of the above, if contractual payments are more than 30 days past due, the
credit risk is deemed to have increased significantly since initial recognition.
When estimating ECLs on a collective basis for a Company of similar assets (as set out in Note 53.02.02.06), the Company
applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition.
53.02.02.06: Forward looking information
The Company has incorporated forward looking information and macro-economic factors while calculating PD and LGD
rate. Refer note 62 for impact of COVID-19 on estimate of PD, LGD and SICR.
53.02.02.07: Grouping financial assets measured on a collective basis
As explained in Note 6.1.(xi) dependent on the factors below, the Company calculates ECLs only on a collective basis.
The Company segments the exposure into smaller homogeneous portfolios, based on a combination of internal and
external characteristics of the loans as described below.
1. New vehicle finance
2. Pre owned vehicle finance
3. Business Loans
53.02.03: Analysis of risk concentration
The maximum credit exposure to any individual client or counterparty as of March 31, 2020 was Rs. 51.01 crores (March
31, 2019: Rs. 49.70 crores).

Credit risk exposure analysis

(Rs. in crores)
Stage 1 Stage 2 Stage 3 Total
Normal 86,628.95 10,501.60 6,351.12 103,481.67
Restructured ** - - 1,003.23 1,003.23
Equipment finance - - 7.52 7.52
Repossessed - - 908.45 908.45
Exposure > 1 crore 436.02 130.47 519.74 1,086.23
Other risks-forced/fraud - 1,627.59 387.02 2,014.61
Grand Total 87,064.97 12,259.66 9,177.08 108,501.71
** includes repossessed assets worth Rs. 44.96 crores
53.03: Liquidity risk and funding management
In assessing the Company’s liquidity position, consideration shall be given to: (1) present and anticipated asset quality (2)
present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future
funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily
liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. The
Company also enters into securitisation deals (direct assignment as well as pass through certificates) of their loan portfolio,
the funding from which can be accessed to meet liquidity needs. In accordance with the Company’s policy, the liquidity
position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in
general and specifically to the Company. Net liquid assets consist of cash, short–term bank deposits and investments in mutual
fund available for immediate sale, less issued securities and borrowings due to mature within the next month. Borrowings
from banks and financial institutions, issue of debentures and bonds and acceptance of public deposits are considered as
important sources of funds to finance lending to customers. They are monitored using the advances to borrowings ratio,
which compares loans and advances to customers as a percentage of secured and unsecured borrowings. Asset Liability
Management Committee(ALCO) reviews or monitors Asset Liability Management (ALM) mismatch. ALCO conducts
periodic reviews relating to the liquidity position and stress test assuming various what if scenarios.


298
53.03.01: Analysis of financial assets and liabilities by remaining maturities
The table below summarises the maturity profile of the Company’s financial assets and liabilities as at March 31. All derivatives used for hedging and natural hedges are shown
by maturity. Repayments which are subject to notice are treated as if notice were to be given immediately. However, the Company expects that many customers will not request
repayment on the earliest date it could be required to pay and the table does not reflect the expected cash flows indicated by its deposit retention history.
(Rs. in crores)
Financial assets

Bank balance other than above 2,480.60 934.41 789.14 21.78 - - 4,225.93
Notes

Financial assets at fair value through - - - - - 7.42 7.42
profit and loss
Loans * 6,915.77 14,216.43 23,589.62 64,954.52 25,558.69 1,634.19 136,869.22
Deposits * 768.95 954.94 1,704.67 8,155.32 2,701.97 - 14,285.85
Debt securities * 1,506.34 1,740.07 3,943.97 22,256.44 9,096.87 1,532.02 40,075.71
Borrowings (other than debt securities) * 3,191.71 5,818.22 10,169.69 20,844.94 7,639.45 581.01 48,245.02
Trade payables 143.84 - - - - - 143.84
Other payables 1.13 - - - - - 1.13
Other financial liabilities 581.20 147.66 58.96 81.48 41.92 1.10 912.32
Lease liabilities 24.31 20.24 36.42 135.90 83.79 62.15 362.81
(liabilities)

(Rs. in crores)
Notes
Financial assets
Bank balance other than above 903.38 1,131.13 198.54 719.28 - - 2,952.33
Financial assets at fair value through 1,552.03 - - - - 8.05 1,560.08
profit and loss
Loans * 15,224.47 12,609.29 21,693.97 55,374.68 17,941.91 1,087.14 123,931.46

Deposits * 891.68 778.19 1,498.30 7,209.38 2,570.91 - 12,948.46
Debt securities * 4,968.51 5,914.48 4,916.06 18,123.86 5,013.82 3,351.01 42,287.74
Borrowings (other than debt securities) * 5,887.43 5,128.06 9,187.54 13,040.62 6,774.54 1,661.06 41,679.25
Trade payables 133.46 - - - - - 133.46
Other payables 2.72 - - - - - 2.72
Other financial liabilities 828.34 11.98 83.77 70.01 4.43 17.95 1,016.48
Derivative liabilities 83.42 - - - - - 83.42
(liabilities)

299
300
The table below shows the expiry by maturity of the contingent liabilities and commitments of the Company and its associate: Each undrawn loan commitment is included in
the time band containing the earliest date it can be drawn down.
(Rs. in crores)
Particulars Less than 3 Over 3 Over 6 months Over 1 year & Over 3 years Over 5 years Total
months months & upto 1 year upto 3 years & upto 5 years
& upto 6
months
In respect of Income tax demands where the Company and - - - - - 133.80 133.80
its associate have filed appeal before various authorities

VAT demand where the Company and its associate have - - - - - 117.54 117.54
Notes
filed appeal before various appellates

Service tax demands where the Company and its associate - - - - - 326.21 326.21
Penalty levied for Contravention of provisions of Section - - - - - 5.00 5.00
6(3)(b) of FEMA, 1999 read with Regulation 4 of Foreign
Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) Regulations, 2000
In respect of Income tax demands where the Company and - - - - - 78.79 78.79
its associate have filed appeal before various authorities
VAT demand where the Company and its associate have - - - - - 125.16 125.16
filed appeal before various appellates
Service tax demands where the Company and its associate - - - - - 198.53 198.53


53.04: Market Risk

Market risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such
as interest rates, foreign exchange rates and equity prices. The Company classifies exposures to market risk into either trading or
non–trading portfolios and manages each of those portfolios separately.
Interest rate risk
The Company’s exposure to changes in interest rates relates to the Company’s outstanding floating rate liabilities. Most of the
Company’s outstanding liability is on fixed rate basis and hence not subject to interest rate risk. Some of the borrowings of the
Company are linked to rate benchmarks such as Bank MCLR or London Inter-bank Offered Rate (LIBOR) and Mumbai Inter-
Bank Offer Rate (MIBOR) and hence subject to interest rate risk. The Company hedges interest rate risks of foreign currency
borrowings through derivative transactions. The sensitivity of the Company’s floating rate borrowings to change in interest rate
(assuming all other variables constant) is given below:
decrease increase
Debt instrument 175.00 9.01 (8.48)
Term loans 9,941.92 875.54 (640.63)
Total floating rate borrowings 10,116.92 884.55 (649.11)

increase decrease
Debt instrument 2,360.00 232.28 (288.97)
Term loans 10,855.48 672.97 (839.79)
Total floating rate borrowings 13,215.48 905.25 (1,128.76)
54 Disclosure under the MSME Act 2006, (as per the intimation received from the vendor)
Based on the intimation received by the Company, some of the suppliers have confirmed to be registered under “The Micro,
Small and Medium Enterprises Development (‘MSMED’) Act, 2006”. Accordingly, the disclosures relating to amounts
unpaid as at the year ended together with interest paid /payable are furnished below:
(Rs. in crores)
Particulars As at As at
March 31, 2020 March 31, 2019
The principal amount remaining unpaid to supplier as at the end of the year 0.40 -
The interest due thereon remaining unpaid to supplier as at the end of the year - -
The amount of interest paid in terms of Section 16, along with the amount of
- -
payment made to the supplier beyond the appointed day during the year
The amount of interest due and payable for the year of delay in making payment
(which have been paid but beyond the appointed day during the year) but without - -
adding the interest specified under this Act
The amount of interest accrued during the year and remaining unpaid at the end
- -
of the year
The amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
- -
small enterprise for the purpose of disallowance as a deductible expenditure under
section 23 of the Micro, Small and Medium Enterprise Development Act, 2006
55 Disclosure regarding auditors remuneration disclosed under legal and professional fees
In addition to the auditors remuneration shown in note 42 Other expenses, the Company has also incurred auditors
remuneration in connection with audit and related statutory services to be performed by auditors in connection with issue
of senior secured notes of Rs. 0.83 crores (March 31, 2019: Rs. 0.26 crores) [including out-of-pocket expenses of Rs. Nil
(March 31, 2019: Rs. Nil)] shown under Legal and professional fees in note 42 Other expenses.

56 Disclosure regarding auditors remuneration disclosed under finance cost

In addition to the auditors remuneration shown under note 42 Other expenses, the Company has also incurred auditors
remuneration in connection with audit and related statutory services to be performed by auditors in connection with
public issue of non-convertible debentures of Rs. 0.36 crores (March 31, 2019: Rs. 0.48 crores) amortised portion of which
is included in note 37 Finance Costs under interest on debentures and unamortised portion of which is included in note
22 Debt securities under Redeemable non-convertible debentures - Secured -Public issue.
57 Segment Reporting
The Company operates in a single reporting segment i.e. financing. Its associate is primarily engaged in the business
of facilitation service. Since, it does not meet the quantitative thresholds laid down under the Ind AS 108 – “Segment
Reporting” for reportable segments, it has not been considered for segment reporting.
58 Transfer of financial assets
Note 58.01: Transferred financial assets that are not derecognised in their entirety
The following table provides a summary of financial assets that have been transferred in such a way that part or all of the
transferred financial assets do not qualify for derecognition, together with the associated liabilities.
(Rs. in crores)
As at As at
Securitisation
Carrying amount of transferred assets measured at amortised cost(Held as collateral) 21,612.72 17,770.52
Carrying amount of associated liabilities (Borrowings (other than debt securities)-
21,452.04 17,738.52
measured at amortised cost)
Fair value of assets 20,054.22 16,355.39
Fair value of associated liabilities 20,358.45 15,918.57
Net position at fair value (304.23) 436.82
Note 58.02: Transferred financial assets that are derecognised in their entirety
The Company has assigned loans (earlier measured at amortised cost) by way of direct assignment. As per the terms of
these deals, since substantial risk and rewards related to these assets were transferred to the extent of 90% of the assets
transferred to the buyer, the assets have been de-recognised from the Company’s Balance Sheet. The table below summarises
the carrying amount of the derecognised financial assets:
(Rs. in crores)
As at As at
Direct assignment
Carrying amount of transferred assets measured at amortised cost 1,427.81 2,428.39
Carrying amount of exposures retained by the Company at amortised cost 142.78 253.60
Note 58.03: Transferred financial assets that are derecognised in their entirety but where the Company has
continuing involvement
The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have
continuing involvement.
59 Expenditure in foreign currency (accrual basis)

(Rs. in crores)
Resource mobilisation 148.09 67.78
Legal and professional charges - 0.60
Membership fees 0.00 0.00
Total 148.09 68.39

60 Details of CSR expenses

(Rs. in crores)
a) Gross amount required to be spent by the Company during the year 52.82 39.51
b) Amount spent during the year
- On purposes other than construction/acquisition of any asset
Paid in cash 53.16 40.06
Yet to be paid in cash - -
Total 53.16 40.06
61 Movement in provisions
(Rs. in crores)
March 31, 2019 made during the year reversal during March 31, 2020
the year
(Rs. in crores)
Particulars As at April 01, Additional provision Utilisation/ As at March 31, 2019
2018 made during the year reversal during
the year
The above provisions relate to disputed tax demands in relation to VAT and Service tax. Due to the very nature of such
provisions and the litigations involved, it is not possible to estimate the timing/ uncertainties relating to their outflows.
62 Note on Covid
The spread of SARS-CoV-2 virus (referred as ‘COVID-19’) across the globe and in India has contributed to a significant
decline and volatility in global and Indian financial markets and a shrink in the economic activities. The Government
of India declared 21-day nation-wide lock-down to contain the pandemic COVID-19 with effect from March 25, 2020.
The Government then extended the lockdown till May 31, 2020. However, the government relaxed the lock-down in
certain essential areas including plying commercial vehicles for transportation of essential and non-essential goods across
the country. In terms of COVID-19 regulatory package announced by Reserve Bank of India ( RBI ) on March 27, 2020
and in accordance with the Scheme approved by the Board of directors of the Company, the Company has extended
the moratorium to the eligible borrowers for instalments falling due between March 1, 2020 and May 31, 2020. Further,
pursuant to RBI notification dated May 23, 2020, the moratorium is given to eligible borrowers for a further period of
three months upto August 31, 2020. Extension of such moratorium benefit to borrowers as per the COVID-19 Regulatory
package of the RBI by itself is not considered to result in significant increase in credit risk as per Ind AS 109 for staging of
accounts. The staging of accounts as on March 31, 2020 with respect to assets which were overdue though standard and to
whom moratorium has been granted is based on the days past due as on February 29, 2020 keeping it at standstill. Further,
estimates and associated assumptions applied in preparing the financial statements, especially in respect of credit loss on
loans, are based on historical experience and other emerging/forward looking factors including those arising on account
of the COVID-19 pandemic.
The Company has used relevant indicators of moratorium, considering various measures taken by Government and other
authorities along with an estimation of potential stress on probability of defaults and loss given defaults due to COVID-19
situation in developing the estimates and assumptions to assess the expected credit loss on loans, including on account of
potential macro-economic conditions. Based on such assessment, the Company has made additional expected credit loss
provision of Rs 909.64 crores on account of COVID-19 impact in the financial statement. The impairment loss provided
for on account of COVID-19 pandemic is based on the assessment of current situation and the actual impairment loss
could be different due to uncertainty over duration of pandemic and restoration of normalcy.

63 Events after reporting date
There have been no events after the reporting date except the following:
The ratings of the Company which have been downgraded by the various rating agencies after March 31, 2020 are given
below:
Credit Rating Agency Instruments As at March 31, 2020 Current Rating as on date
CRISIL Bank Loan Long-term CRISIL AA+/Stable CRISIL AA+/Negative
CRISIL Fixed deposit CRISIL FAAA/Stable CRISIL FAAA/ Negative
CRISIL Non-convertible CRISIL AA+/Stable CRISIL AA+/Negative
debenture
CRISIL Long Term Principal CRISIL PP-MLD CRISIL PP-MLD AA+r/
Protected Market AA+r/Stable Negative
Linked Debentures
CRISIL Subordinated debt CRISIL AA+/Stable CRISIL AA+/Negative
India Ratings & Research Private Limited Non-convertible IND AA+/Stable IND AA+/RWN
(Formerly known as "FITCH") debenture Outlook
India Ratings & Research Private Limited Subordinated debt IND AA+/Stable IND AA+/RWN
(Formerly known as "FITCH") Outlook
India Ratings & Research Private Limited Structured Non- Provisional IND This rating is now
(Formerly known as "FITCH") Convertible AAA(CE)/Stable withdrawn
Debentures
Standard & Poor's Ratings Offshore Rupee BB+ BB
Denominated Bond
(Masala Bond)
Standard & Poor's Ratings U.S. Dollar Senior BB+ BB
Secured Notes
Standard & Poor's Ratings Long-Term Issuer BB+/Negative BB/Negative
Credit Rating
RWN=Rating Watch Negative
64 Floating charge on investment in government securities
In accordance with the Master Direction - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve
Bank) Directions, 2016 dated August 25, 2016, the Company has created a floating charge on the statutory liquid assets
comprising of investment in government securities (face value) to the extent of Rs. 1,758.76 crores (March 31, 2019: Rs.
1,463.76 crores) in favour of trustees representing the public deposit holders of the Company.
65 Previous year comparatives

Previous year’s figures have been regrouped/reclassified wherever necessary, to conform to current year’s classification.


Mumbai Mumbai
June 10, 2020 June 10, 2020

Additional information as required by paragraph 2 of the general instructions for preparation of Consolidated Financial
statements to schedule III to the Companies Act, 2013.
Net Asset, i.e, total assets minus

total liabilities Shares in profit or loss
As % of As % of
Consolidated Amount Consolidated Amount
Name of the entity in the Group net assets (Rs. in crore) profit or loss (Rs. in crore)
1 2 3 4 5
Parent
Shriram Transport Finance Company Limited 99.24% 18,005.16 99.58% 2,501.84
Subsidiaries
Indian Not applicable Not applicable Not applicable Not applicable
Foreign Not applicable Not applicable Not applicable Not applicable
Minority interests in all subsidiaries Not applicable Not applicable Not applicable Not applicable
Associates (Investment as per the equity method)
Indian
Shriram Automall India Limited 0.70% 126.46 0.42% 10.43
Inter-company eliminations and consolidation 0.06% 10.68 0.00% -
adjustments
Joint Ventures (as per proportionate consolidation
/ investment as per the equity method)
Indian Not applicable Not applicable Not applicable Not applicable
Total 100.00% 18,142.30 100.00% 2,512.27
For and on behalf of the Board of Directors of

S. Lakshminarayanan Umesh Revankar

Chairman Managing Director & CEO
DIN: 02808698 DIN: 00141189
New Delhi Mumbai
June 10, 2020 June 10, 2020

Mumbai Mumbai
June 10, 2020 June 10, 2020

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED
CIN: L65191TN1979PLC007874
Regd. Office: Mookambika Complex, 3rd Floor, No.4, Lady Desika Road, Mylapore, Chennai -
600 004 Tel No: +91 44 2499 0356 Fax: +91 44 2499 3272.
Website: www.stfc.in Email id: secretarial@stfc.in.
NOTICE
NOTICE is hereby given that the Forty-First Annual General confirmed as the Final Dividend for the Financial Year
Meeting of the Members of SHRIRAM TRANSPORT 2019-20.
FINANCE COMPANY LIMITED (the Company) will be 3. To appoint Mr. Puneet Bhatia (DIN 00143973), who
held on Wednesday, August 19, 2020 at 3.30 p.m. through retires by rotation as a Director and in this regard, to
Video Conferencing (VC)/ Other Audio Visual Means pass the following resolution as an Ordinary Resolution:
(OAVM) facility to transact the following business:
“RESOLVED THAT pursuant to the provisions of
ORDINARY BUSINESS Section 152 of the Companies Act, 2013, Mr. Puneet
1. To receive, consider and adopt: Bhatia (DIN 00143973), who retires by rotation at
a. the Audited Financial Statements of the Company for this meeting and being eligible has offered himself for
the financial year ended March 31, 2020, together with re-appointment, be and is hereby re-appointed as a
the Reports of the Board of Directors and the Auditors Director of the Company, liable to retire by rotation.”
thereon; and 4. To fix remuneration of joint Auditors of the Company
b. the Audited Consolidated Financial Statements of the and in this regard, to pass the following resolutions as
Company for the financial year ended March 31, 2020, Ordinary Resolutions:
together with the Report of the Auditors thereon and (a) “RESOLVED THAT pursuant to the provisions of
in this regard, to pass the following resolutions as Section 142 and other applicable provisions, if any,
Ordinary Resolutions: of the Companies Act, 2013 (“the Act”), and the
Companies (Audit and Auditors) Rules, 2014 (including
(a) “RESOLVED THAT the audited financial statements
any statutory modification(s) or re-enactment thereof,
including Balance Sheet of the Company as at March
for the time being in force), M/s Haribhakti & Co.
31, 2020, the Statement of Profit and Loss, the Statement
LLP, Chartered Accountants Firm (Firm Registration
of Changes in Equity and the Cash Flow Statement for
No.103523W/W100048), who were appointed as joint
the year ended on that date together with all the notes
Auditors of the Company at the 38th Annual General
annexed and the Directors’ and Auditors’ Reports
Meeting (AGM) held on June 29, 2017 to hold office
thereon, placed before the meeting, be and are hereby
from conclusion of 38th AGM until the conclusion of
considered and adopted.”
43rd AGM of the Company, be paid remuneration of
(b) “RESOLVED THAT the audited consolidated financial Rs. 58,00,000/- (exclusive of certification fees, goods
statements including Balance Sheet of the Company as and services tax and reimbursement of out of pocket
at March 31, 2020, the Consolidated Statement of Profit expenses) for the financial year 2020-21.”
and Loss, the Consolidated Statement of Changes in
(b) “RESOLVED THAT pursuant to the provisions of
Equity and the Cash Flow Statement for the year ended
Section 142 and other applicable provisions, if any,
on that date together with all the notes annexed and the
of the Companies Act, 2013 (“the Act”), and the
Auditors’ Reports thereon, placed before the meeting,
Companies (Audit and Auditors) Rules, 2014 (including
be and are hereby considered and adopted.”
any statutory modification(s) or re-enactment thereof,
2. To confirm the payment of Interim Dividend of Rs.5 per for the time being in force), M/s Pijush Gupta & Co.
equity share already paid during the year as the Final Chartered Accountants, Gurugram (Firm Registration
Dividend for the Financial Year 2019-20 and in this No. 309015E), who were appointed as joint Auditors of
regard, to pass the following resolution as an Ordinary the Company at the 38th Annual General Meeting (AGM)
Resolution: held on June 29, 2017 to hold office from conclusion
“RESOLVED THAT an Interim Dividend of Rs.5/- per of 38th AGM until the conclusion of 43rd AGM of the
equity share of face value of Rs.10/- each absorbing Company, be paid remuneration of Rs.34,80,000/-
Rs. 136.76 crores including dividend distribution (exclusive of certification fees, goods and services tax
tax, for the financial year ended March 31, 2020 paid and reimbursement of out of pocket expenses) for the
on November 19, 2019 be and is hereby noted and financial year 2020-21.”
306 Notice 2019-20

NOTICE
SPECIAL BUSINESS the same on behalf the Company in favour of the

5. To enhance the limit to sell/ assign/ securitize lenders(s) and to do all such acts, deeds, matters and
receivables and in this regard, to pass the following things including issue, allotment of further shares in
resolution as a Special Resolution: the subscribed capital of the Company and to settle all
such matters, issues, doubts, at its absolute discretion,
“RESOLVED THAT pursuant to Section 180(1)(a) and
to facilitate the process of conversion of the Loan(s) as
other applicable provisions, if any, of the Companies
aforesaid in the Event of Default to give effect to this
Act, 2013, (hereinafter referred to as the “Act”), consent
resolution.”
of the Company be and is hereby accorded to the Board
of Directors of the Company or its Committee as may 7. To authorize capital raising through issuance of
be authorised by the Board of Directors to sell / assign Equity Shares and/or other Eligible Securities and
/ securitize receivables of hypothecation / hire purchase in this regard, to pass the following resolution as a
/ lease / loan agreements/contracts due from the hirers Special Resolution:
/ lessees / loanees / borrowers of the Company from “RESOLVED THAT pursuant to the provisions of
time to time provided that the aggregate amounts of Sections 23, 42, 62,71 and other applicable provisions,
such transactions outstanding at any point of time shall if any, of the Companies Act, 2013 (the “Companies
not exceed Rs. 40,000 crores (Rupees Forty Thousand Act”), the Companies (Prospectus and Allotment of
Crores Only). Securities) Rules, 2014, the Companies (Share Capital
RESOLVED FURTHER THAT the Board of Directors and Debentures) Rules, 2014 and other applicable
or such Committee/ or person/(s) as authorised by the rules made thereunder (including any amendment(s),
Board of Directors be and are hereby authorised to statutory modification(s) or re-enactment thereof), the
finalise the form, extent and manner of, and to sign all Securities and Exchange Board of India (Issue of Capital
such documents, deeds, and writings for giving effect to and Disclosure Requirements) Regulations, 2018, as
this resolution.” amended (the “SEBI ICDR Regulations”), Securities
and Exchange Board of India (Listing Obligations
6. To approve conversion of loan into equity or other
and Disclosure Requirements) Regulations, 2015, as
capital of the Company in case of Event of Default
amended (the “SEBI LODR Regulations”), the enabling
and in this regard, to pass the following resolution as
provisions of the Memorandum of Association and
a Special Resolution:
Articles of Association of the Company, the uniform
“RESOLVED THAT pursuant to Section 62(3) and listing agreements entered into by the Company with
other applicable provisions, if any, of the Companies the BSE Limited and National Stock Exchange of India
Act, 2013 (‘the Act’), the consent of the Company be Limited, (the “Stock Exchanges”), the Foreign Exchange
and is hereby accorded to increase subscribed capital of Management Act, 1999 and the rules and regulation
the Company caused in the event of exercise of rights by framed thereunder, as amended, including Foreign
the lenders of the company to convert the whole or part Exchange Management (Non-debt Instruments)
of the outstanding amount(s) of Loan(s) in to equity or Rules, 2019, the Depository Receipts Scheme, 2014,
other capital of the Company in the Event of Default as amended, the current Consolidated FDI Policy and
by the Company to repay the Loan(s) in terms of the in accordance with the rules, regulations, guidelines,
Financing Document(s) executed or to be executed notifications, circulars and clarifications issued thereon
by the Company in favour of the Lender(s) at a price from time to time by Government of India (the “GoI”),
to be determined in accordance with the applicable the Reserve Bank of India (the “RBI”), and the Securities
regulations of Securities and Exchange Board of India and Exchange Board of India (the “SEBI”), Stock
or the directions of Reserve Bank of India and in Exchanges, Ministry of Corporate Affairs (“MCA”), the
accordance with the applicable regulatory guidelines of Registrar of Companies, Tamil Nadu at Chennai and/
the regulatory authorities. or any other competent authorities, whether in India
RESOLVED FURTHER THAT the Board of Directors or abroad, (hereinafter singly or collectively referred
of the Company (which term shall include the Banking to as the “Appropriate Authorities”) and subject
and Finance Committee or any other Committee to necessary approvals, permissions, consents and
constituted by the Board) be and are hereby authorized sanctions as may be necessary from the Appropriate
to negotiate and finalize on behalf of the Company Authorities in this regard and further subject to such
all the terms and conditions and the agreement(s), terms, conditions, alterations, corrections, changes,
undertaking(s), declaration(s), indemnity(ies), variations and/ or modifications as may be prescribed or
affidavit(s), document(s), paper(s) and to execute imposed by the Appropriate Authorities while granting

any such approvals, permissions, consents and sanctions institutions, mutual funds, pension funds and/or
and which may be agreed to by the Board of Directors any other categories of investors or persons who are
of the Company (hereinafter referred to as “the Board”, authorized to invest in the Company’s Equity Shares or
which term shall include Securities Issuance Committee other Eligible Securities as per the extant regulations
constituted by the Board to exercise its powers, or guidelines, whether they be holders of Equity Shares
including the powers conferred by this resolution), the of the Company or not (collectively referred to as
approval of the Members of the Company be and is “Investors”) or any combination of the above as may
hereby accorded to the Board and the Board be and is be deemed appropriate by the Board in its absolute
hereby authorised on behalf of the Company to create, discretion in consultation with book running lead
offer, issue and allot (including with provisions for managers appointed for this purpose on such terms
reservation on firm and/or competitive basis, of such and conditions including securities premium and green
part of the Issue and for such categories of persons shoe option attached thereto, at such price or prices
as maybe permitted), such number of equity shares (at prevailing market price or at permissible discount
of the Company of face value of Rs.10 each (“Equity or premium to market price in terms of applicable
Shares”) and/or other Eligible Securities defined under regulations) at the Board’s absolute discretion including
Regulation 171(a) of SEBI ICDR Regulations, including the discretion to decide the categories of Investors to
Foreign Currency Convertible Bonds (FCCBs), fully whom the offer, issue and allotment of Equity Shares
convertible debentures/partly convertible debentures, and/or other Eligible Securities shall be made to the
non-convertible debentures with warrants convertible exclusion of others, subject to applicable law, considering
into Equity Shares, preference shares convertible into prevailing market conditions and other relevant factors
Equity Shares, and/or any other financial instruments wherever necessary.
convertible into Equity Shares (including warrants, or RESOLVED FURTHER THAT subject to the provisions
otherwise, in registered or bearer form) and/or any of the SEBI ICDR Regulations, in the event the Issue is
security convertible into Equity Shares and/or securities undertaken by way of Qualified Institutions Placement
linked to Equity Shares and/or securities with or (“QIP”) to Qualified Institutional Buyers (“QIBs”) in
without detachable warrants with right exercisable by terms of Chapter VI of the SEBI ICDR Regulations:
the warrant holders to convert or subscribe to Equity
(a) the allotment of Equity Shares and/or other Eligible
Shares (other “Eligible Securities”) up to an aggregate
Securities shall only be to Qualified Institutional
amount of Rs. 2,500 crore (Rupees Two Thousand and
Buyers as defined in the SEBI ICDR Regulations
Five Hundred crore only) or equivalent thereof in one
(“QIBs”)
or more currencies, at such price or prices, at a discount
or premium to market price or prices, as permitted (b) the allotment of such Equity Shares and/or other
under applicable laws (Issue), in any combination in Eligible Securities, or any combination of Eligible
one or more tranches, whether Rupee denominated Securities as may be decided by the Board to be
or denominated in foreign currency, in the course of completed within a period of 365 days from the
international and/or domestic offering(s) in one or more date of passing of the Special Resolution by the
foreign markets and/or domestic market, through one Members or such other time as may be allowed
or more public issue(s), private placement(s), qualified under the SEBI ICDR Regulations from time to
institutions placement(s) and/or any combination time;
thereof or any other method as may be permitted under (c) The Equity Shares and/or other Eligible Securities
applicable laws to eligible investors in the course of (excluding warrants) shall be allotted as fully paid
domestic or international offerings through issue of up.
placement document and/or a letter of offer and /or (d) in case of allotment of Equity Shares, the relevant
circular or other permissible/requisite offer document date for the purpose of pricing of the Equity Shares
to Qualified Institutional Buyers (QIBs) as defined to be issued, shall be the date of the meeting in which
under the SEBI ICDR Regulations in accordance with the Board decides to open the QIP for subscription
Chapter VI of the SEBI ICDR Regulations including and in case of allotment of eligible convertible
resident or non-resident/foreign investors (whether securities, either the date of the meeting in which
institutions and/or incorporated bodies and/or trusts the Board decides to open the Issue of such other
or otherwise), venture capital funds (foreign or Indian), Eligible Securities or the date on which the holders
alternate investment funds, foreign institutional of such other Eligible Securities become entitled to
investors, foreign portfolio investors, banks, qualified apply for Equity Shares, as may be determined by
foreign investors, Indian and/or multilateral financial the Board;
308 Notice 2019-20

NOTICE
(e) no single allottee shall be allotted more than RESOLVED FURTHER THAT for the purpose of
fifty per cent of the Issue size and the minimum giving effect to any offer, issue or allotment of Equity
number of allottees shall be as per the SEBI ICDR Shares and/or other Eligible Securities or instruments
Regulations; representing the same, as described above, the Board be
(f) to determine and finalize price for issuance of any and is hereby authorized to (i) do all such acts, deeds,
Equity Shares and/or other Eligible Securities, matters and things, as it may, in its absolute discretion,
subject to the price being not less than the price deem necessary or desirable for such purpose, including
determined in accordance with the pricing formula without limitation, the determination of terms and
provided under Chapter VI of the SEBI ICDR conditions for issuance of the Equity Shares and/or other
Regulations (the QIP Floor Price); Eligible Securities, the number of Equity Shares and/or
Eligible Securities that may be offered in domestic and
Provided however, that the Board may, at its
international markets and proportion thereof, timing
absolute discretion, in consultation with the book
for issuance of such Equity Shares and/or other Eligible
running lead managers, offer a discount of not
Securities (ii) to vary, modify or alter any of the terms and
more than 5% or such other discount as permitted
conditions as it may deem expedient, (iii) entering into
under applicable law on the QIP Floor Price,
and executing agreements in relation to arrangements
calculated in accordance with the pricing formula
made for managing, marketing, listing, trading and
provided under the SEBI ICDR Regulations;
providing legal advice as well as acting as depository,
(g) any subsequent QIP of Equity Shares and/or other custodian, registrar, trustee, escrow agent (iv) to execute
Eligible Securities shall not be made until the any amendments or supplements thereto, as may be
expiry of two weeks or such other period as may be necessary or appropriate (v) to finalize, approve and
permitted by SEBI, from the date of the prior QIP issue placement document(s), prospectus and/or offer
made pursuant to this Special Resolution. document and/or circular(vi) filing of placement
(h) The Equity Shares and/or other Eligible Securities documents(s), prospectus and other documents (in
shall not be eligible to be sold by the allottee(s) for preliminary or final form) with any Indian or foreign
a period of one year from the date of allotment, regulatory authority or stock exchanges (vii) to sign
except on a recognized stock exchange, or except all deeds, documents and writings and to pay any fees,
as may be permitted from time to time. commissions, remuneration, expenses relating thereto
RESOLVED FURTHER THAT in case of offering of (viii) to settle all questions, difficulties or doubts that
any other Eligible Securities convertible into Equity may arise in regard to the issue, offer or allotment of
Shares, consent of the shareholders be and is hereby Equity Shares and/or other Eligible Securities and (ix)
accorded to the Board to issue and allot such number take all steps which are incidental and ancillary in this
of Equity Shares as may be required to be issued and connection, including in relation to utilization of the
allotted upon conversion, redemption or cancellation Issue proceeds, as it may in its absolute discretion deem
of any such Eligible Securities referred to above in fit without being required to seek further consent or
accordance with the terms of issue/ offering in respect approval of the Members or otherwise to the end and
of such Eligible Securities. intent that the Members shall be deemed to have given
RESOLVED FURTHER THAT for the purpose of their approval thereto expressly by the authority of this
giving effect to any offer, issue or allotment of Equity resolution.
Shares and/or other Eligible Securities or instruments RESOLVED FURTHER THAT the Board be and is
representing the same, as described above, the Board hereby authorised to seek any approval that is required
be and is hereby authorized on behalf of the Company in relation to the creation, issuance and allotment
to seek listing of any or all of such Equity Shares and/ and listing of the Equity Shares and/or other Eligible
or other Eligible Securities on one or more Stock Securities, from any statutory or regulatory authority or
Exchanges in India or abroad, as necessary. the stock exchanges in India or abroad, as necessary and
RESOLVED FURTHER THAT the Equity Shares that that any approvals that may have been applied for by the
may be issued and allotted, including upon conversion Board in relation to the creation, issuance and allotment
of any other Eligible Securities in accordance with the and listing of the Equity Shares and/ or other Eligible
terms of the offering, shall rank pari passu with the Securities be and are hereby approved and ratified by
existing Equity Shares of the Company in all respects the members.”
including entitlement to dividend, voting rights or
otherwise.

Notes: 36(3) of the SEBI Listing Regulations and as per
1. In view of the continuing Covid-19 pandemic, the provisions of the Act.
Ministry of Corporate Affairs (“MCA”) has vide its 7. The Board of Directors at its meeting held on October
Circular No. 14/2020 dated April 08, 2020, Circular 24, 2019, had declared interim dividend of Rs.5/- per
No. 17/2020 April 13, 2020 and Circular No. 20/2020 equity share of Rs.10/- each for the financial year 2019-
dated May 05, 2020 (collectively referred to as “MCA 20. The payment was made on November 19, 2019. In
Circulars”) permitted to hold the Annual General order to conserve cash resources to face the challenges
Meeting (“AGM”) for the calendar year 2020 through and the contingencies created by Corona virus pandemic,
Video Conferencing (VC)/ Other Audio Visual Means the Board of Directors have not recommended the final
(OAVM), without the physical presence of the Members dividend. As such, the interim dividend shall be the final
at a common venue. In compliance with the provisions dividend for the financial year 2019-20.
of the Companies Act, 2013 (the “Act”), SEBI (Listing The Board of Directors recommend for consideration of
Obligations and Disclosure Requirements) Regulations, the members the above referred interim dividend as final
2015 (“SEBI Listing Regulations”) and MCA Circulars, dividend for the financial year ended March 31, 2020.
the 41st AGM of the Company is being held through
8. At the 38th AGM held on June 29, 2017 the Members
VC / OAVM. The deemed venue for the 41st AGM shall
approved appointment of M/s. Haribhakti & Co. LLP,
be the Registered Office of the Company.
Chartered Accountants Firm (Firm Registration
2. Pursuant to the provisions of the Act, a Member entitled No.103523W/W100048) and M/s. Pijush Gupta & Co.
to attend and vote at the 41st AGM is entitled to appoint Chartered Accountants, Gurugram (Firm Registration
a proxy to attend and vote on his/her behalf and the No. 309015E) as joint Auditors of the Company to
proxy need not be a Member of the Company. Since this hold office from the conclusion of 38th AGM till the
41st AGM is being held pursuant to the MCA Circulars conclusion of the 43rd AGM, subject to ratification
through VC / OAVM facility, physical attendance of of their appointment by Members at every AGM. The
Members has been dispensed with. Accordingly, the requirement to place the matter relating to appointment
facility for appointment of proxies by the Members will of auditors for ratification by Members at every AGM
not be available for the 41st AGM and hence the Proxy has been done away by the Companies (Amendment)
Form and Attendance Slip are not annexed to this Notice. Act, 2017 with effect from May 7, 2018. Accordingly,
3. Institutional / Corporate Shareholders (i.e. other than no resolution is being proposed for ratification of
individuals / HUF, NRI, etc.) are required to send a appointment of joint auditors at the 41st AGM.
scanned copy (pdf/jpg format) of its board or governing’s 9. The facility of joining the 41st AGM through VC/OAVM
body resolution/authorization etc., authorizing their will be opened 30 minutes before and will be open upto
representative to attend the 41st AGM through VC 15 minutes after the scheduled start time of the 41st
/ OAVM on its behalf and to vote through remote AGM, i.e., from 03.00 p.m. to 03.45 p.m. and will be
e-voting. The said resolution/authorization shall be sent available for 1,000 members on a first-come first-served
to the Scrutinizer by email through its registered email basis. This rule would however not apply to participation
address to srirampcs@gmail.com and may also upload of shareholders holding 2% or more shareholding,
the same at https://evoting.karvy.com. promoters, institutional investors, directors, key and
4. The Explanatory Statement pursuant to Section 102(1) senior managerial personnel, auditors, etc.
of the Act, in respect of the item no. 5 to 7 is annexed 10. Institutional investors, who are members of the
and forms a part of this Notice. The Board of Directors, Company, are encouraged to attend and vote at the 41st
at their meeting held on June 10, 2020 and June 15, 2020, AGM of the Company.
has decided that the special business set out under item
11. In terms of sections 101 and 136 of the Act read with the
nos. 5 to 7, being considered unavoidable, be transacted
rules made thereunder, the listed companies may send
at the 41st AGM of the Company.
the notice of 41st AGM and the annual report, including
5. Pursuant to the provisions of Section 91 of the Act, the financial statements, boards’ report, etc. by electronic
Register of Members and the Share Transfer Books of mode. In compliance with the aforesaid MCA Circulars
the Company will remain closed from Thursday, August and SEBI Circular dated May 12, 2020, Notice of the 41st
13, 2020 to Wednesday, August 19, 2020 (both days AGM along with the Annual Report 2019-20 is being
inclusive) for the purpose of 41st AGM of the Company. sent only through electronic mode to those Members
6. A brief detail of the director, who is being re-appointed, whose email addresses are registered with the Company/
is annexed hereto as per the requirements of regulation Depositories. Members may note that the Notice and
310 Notice 2019-20

NOTICE
Annual Report for F.Y.2019-20 will also be available on 20. As per Regulation 40 of SEBI Listing Regulations, as
the Company’s website www.stfc.in, websites of the Stock amended, securities of listed companies can be transferred
Exchanges i.e. BSE Limited and National Stock Exchange only in dematerialized form with effect from, April 1,
of India Limited at www.bseindia.com and www.nseindia. 2019, except in case of request received for transmission or
com respectively, and on the website of KFin Technologies transposition of securities. In view of this and to eliminate
Private Limited (‘KFin’) at https://evoting.karvy.com. all risks associated with physical shares and for ease of
portfolio management, members holding shares in physical
12. Further, those Members who have not registered
form are requested to consider converting their holdings to
their email addresses may temporarily get themselves
dematerialized form. Members can contact the Company
registered with Company’s Registrar and Share Transfer
at secretarial@stfc.in or Company’s Registrars and Share
Agent, Integrated Registry Management Services
Transfer Agents, Integrated Registry Management Services
Private Limited (“Integrated”) by clicking the link: Private Limited (“Integrated”) at csdstd@integratedindia.
https://www.integratedindia.in/emailupdation.aspx in for assistance in this regard.
for receiving the Annual Report for F.Y.2019-20 also
21. To support the ‘Green Initiative’, Members who have
containing Notice of the AGM.
not yet registered their email addresses are requested
13. Members attending the 41st AGM through VC/OAVM to register their e-mail address with their Depository
shall be counted for the purpose of reckoning the Participant (s)(DP) in case the shares are held by them
quorum under Section 103 of the Act. in electronic form and with Integrated in case the
14. The voting rights of members shall be in proportion shares are held by them in physical form for receiving
to their shares of the paid up equity share capital of the all communication including Annual Report, Notices,
Company as on August 12, 2020 being Cut-off Date. Financial Results etc. from the Company electronically.
15. Any person, who acquires shares of the Company and 22. Members are requested to intimate changes, if any,
becomes a Member after dispatch of the Notice, but pertaining to their name, postal address, email address,
telephone/ mobile numbers, Permanent Account
holds shares as on the Cut-off Date for remote e-voting
Number (PAN), mandates, nominations, power of
i.e. August 12, 2020, may obtain the login Id and
attorney, bank details such as, name of the bank and
password by sending a request at evoting@kfintech.com
branch details, bank account number, MICR code, IFSC
or csdstd@integratedindia.in or secretarial@stfc.in.
code, etc., to their DPs in case the shares are held by
16. In case of joint holders, the Member whose name them in electronic form and to Integrated in case the
appears as the first holder in the order of names as per shares are held by them in physical form.
the Register of Members of the Company will be entitled
23. Members holding shares in physical form, in identical
to vote at the 41st AGM.
order of names, in more than one folio are requested
17. Since the 41st AGM will be held through VC / OAVM, to send to the Company or Integrated, the details of
the Route Map is not annexed in this Notice. such folios together with the share certificates for
18. The Company has been maintaining, inter alia, the consolidating their holdings in one folio. A consolidated
following statutory registers at its registered office at share certificate will be issued to such Members after
Chennai, Tamil Nadu - 600 004: making requisite changes.
i) Register of contracts or arrangements in which 24. Members are requested to note that, dividends if not
directors are interested under Section 189 of the Act. encashed for a consecutive period of 7 years from the
date of transfer to Unpaid Dividend Account of the
ii) Register of directors and key managerial personnel
Company, are liable to be transferred to the Investor
and their shareholding under Section 170 of the Act. Education and Protection Fund (“IEPF”). The shares in
In accordance with the MCA Circulars, the Statutory respect of such unclaimed dividends are also liable to be
Registers will be made accessible for inspection through transferred to the demat account of the IEPF Authority.
electronic mode and shall remain open and be accessible In view of this, Members are requested to claim their
to any Member during the continuance of the 41st AGM. dividends from the Company, within the stipulated
19. The Board of Directors has appointed Mr. P. Sriram, timeline. The Members, whose unclaimed dividends/
Practising Company Secretary (Membership No. FCS shares have been transferred to IEPF, may claim the same
by making an online application to the IEPF Authority
4862), Chennai as the Scrutinizer to scrutinize the
in web Form No. IEPF-5 available on www.iepf.gov.in.
e-voting process (remote e-voting and Insta Poll at the
For details, please refer to corporate governance report
41st AGM) and at the 41st AGM in a fair and transparent
which is a part of this Annual Report.
manner and he has consented to act as scrutinizer.

25. Transfer of unclaimed dividend transferred to Investor Education and Protection Fund
i. Pursuant to the provisions of Section 125 of the Companies Act, 2013, the dividends which remain unclaimed for a
period of 7 years will be transferred by the Company to the “Investor Education and Protection Fund” (IEPF) established
by the Central Government as and when they fall due. Shareholders who have not encashed their dividend warrant/
payment instrument(s) so far are requested to make their claim to the Company’s Corporate Office or to Integrated
Registry Management Services Private Limited, 2nd Floor, Kences Towers, No. 1, Ramakrishna Street North Usman
Road, T Nagar, Chennai - 600 017 before transfer to IEPF on the respective dates mentioned below. The intimation in
this regard is being sent to the concerned shareholders.
Year ending Dividend to be transferred to IEPF Year ending on Dividend to be transferred to IEPF
on March 31 March 31
Final Dividend Interim Dividend Final Dividend Interim Dividend
2013 10/08/2020 - 2017 04/08/2024 30/11/2023
2014 14/08/2021 04/12/2020 2018 31/08/2025 07/12/2024
2015 05/09/2022 25/11/2021 2019 02/08/2026 30/11/2025
2016 01/09/2023 04/12/2022 2020 - 29/11/2026
ii) Transfer of Equity Shares to Investor Education and Protection Fund –As per Government of India Gazette
notification No. REGD. NO. D. L.-33004/99 dated February 28, 2017 issued by Ministry of Corporate Affairs(MCA),
the Company is required to transfer the shares to Investor Education and Protection Fund Authority (IEPF Authority),
the shares on which dividend remains unclaimed for seven consecutive years will be transferred to the IEPF Authority
as per Section 124 of the Act, and the applicable rules. Accordingly, during the financial year 2019-2020 the Company
had transferred 56,128 Equity shares of Rs. 10/- each in respect of which the following dividend is not claimed/remains
unpaid for seven consecutive years as per the below mentioned table.
Financial Year Type of Dividend No. of Shares Transferred to IEPF 4 Form Filing date
IEPF Authority
2011-2012 Final Dividend 24,715 01/10/2019
2012-2013 Interim Dividend 31,413 27/03/2020
The Members who have a claim on above dividends remote e-voting services provided by M/s KFin
and equity shares may claim the same from IEPF Technologies Private Limited (‘KFin’), on all the
Authority by submitting an online application resolutions set forth in this Notice. A person, whose
in the prescribed Form No. IEPF-5. During the name is recorded in the Register of Members (in
financial year ended March 31, 2020, the Company case of physical shareholding) or in the register of
had received requests from investors for claiming beneficial owners maintained by the depositories
dividends, fixed deposits and equity shares from (in case of dematerialized shares) as on the cut-off
IEPF Authority. Information on the procedures date i.e. Wednesday, August 12, 2020 only shall
to be followed for claiming the dividend/shares/ be entitled to avail the facility of remote e-voting
fixed deposits are available on the weblink: or for participation at the 41st AGM and voting
http://www.iepf.gov.in/IEPF/refund.html through Insta Poll. A person who is not a Member
as on the Cut-off Date should treat this Notice for
No claims shall lie against the Company in respect information purpose only.
of the dividend, shares, etc. so transferred. The
The remote e-voting period commences on Sunday,
Members/ Claimants can file only one consolidated
August 16, 2020 (9.00 a.m. IST) and ends on
claim in a financial year as per the IEPF Rules.
Tuesday, August 18, 2020 (5:00 p.m. IST). The
Voting through electronic means e-voting module shall be disabled by Kfin for voting
In compliance with the provisions of Section 108 thereafter. Those shareholders, who will be present
of the Act read with Rule 20 of the Companies in the 41st AGM through VC/OAVM facility and
(Management and Administration) Rules, 2014, have not cast their vote on the Resolutions through
as amended and Regulation 44 of the SEBI Listing remote e-voting and are otherwise not barred from
Regulations, the Members are provided the facility doing so, shall be eligible to vote through e-voting
to cast their vote electronically, through the system during the 41st AGM.
312 Notice 2019-20

NOTICE
I. Procedure and Instructions for remote e-voting are same in the e-voting module in their login. The
as under: scanned image of the above documents should be
(i) Initial password is provided in the body of the in the naming format ‘STFCL_EVENT No.’.
email. (xii) In case of any queries/grievances, related to
(ii) Launch internet browser and type the URL: https:// e-voting, the Member may contact the following
evoting.karvy.com in the address bar. person or may refer the Frequently Asked
Questions (FAQs) for Members and e-voting
(iii) Enter the login credentials i.e. User ID and
User Manual available at the ‘download’ section of
password mentioned in your email. Your Folio No./
https://evoting.karvy.com :
DP ID Client ID will be your User ID. However, if
you are already registered with KFin for e-voting, Name : Mr. D S Nagaraja
use your existing User ID and password for casting Designation : Deputy Manager,
your votes. KFin Technologies Private Limited
(iv) After entering the details appropriately, click on Unit: Shriram Transport Finance Company
LOGIN. Limited
(v) You will reach the password change menu wherein Selenium Tower B, Plot 31-32
you will be required to mandatorily change your Gachibowli Financial District,
password. The new password shall comprise of Nanakramguda,
minimum 8 characters with at least one upper case Hyderabad – 500 032
(A-Z), one lower case (a-z), one numeric value (0- Email ID: evoting@kfintech.com
9) and a special character (@,#,$,etc.). It is strongly Tel: 040 6716 1582/ Toll free No. 1-800-3454-001
recommended not to share your password with Alternatively, Members may also write to Company
any other person and take utmost care to keep your Secretary at secretarial@stfc.in.
password confidential.
In case of any other queries/grievances, the Member
(vi) You need to login again with the new credentials. may send an email at csdstd@integratedindia.in to
(vii) On successful login, the system will prompt you to Integrated Registry Management Services Private
select the EVENT i.e. Shriram Transport Finance Limited, Registrar and Share Transfer Agents of
Company Limited the Company.
(viii) On the voting page, the number of shares (which II. Process for those shareholders whose email addresses
represents the number of votes) held by you as on are not registered with the depositories for obtaining
the cut-off date will appear. If you desire to cast all login credentials for e-voting for the resolutions
the votes assenting/dissenting to the resolution, proposed in this Notice:
enter all shares and click ‘FOR’/‘AGAINST’ as the 1. For Physical shareholders- please provide necessary
case may be or partially in ‘FOR’ and partially in details like Folio No., Name of shareholder,
‘AGAINST’, but the total number in ‘FOR’ and/or scanned copy of the share certificate (front and
‘AGAINST’ taken together should not exceed your back), PAN (self-attested scanned copy of PAN
total shareholding as on the cut-off date. You may card), AADHAR (self-attested scanned copy of
also choose the option ‘ABSTAIN’ and the shares Aadhar Card) by email to secretarial@stfc.in /
held will not be counted under either head. csdstd@integratedindia.in
(ix) Members holding multiple folios/demat accounts 2. For Demat shareholders -, please provide Demat
shall choose the voting process separately for each account detials (CDSL-16 digit beneficiary
folio/demat account. ID or NSDL-16 digit DPID + CLID), Name,
(x) Cast your votes by selecting an appropriate option client master or copy of Consolidated Account
and click on ‘SUBMIT’. A confirmation box will be statement, PAN (self-attested scanned copy of
displayed. Click ‘OK’ to confirm, else ‘CANCEL’ to PAN card), AADHAR (self-attested scanned copy
modify. Once you confirm, you will not be allowed of Aadhar Card) to secretarial@stfc.in/csdstd@
to modify your vote subsequently. During the voting integratedindia.in
period, you can login multiple times till you have III. Instructions for attending/joining the 41st AGM
confirmed that you have voted on the resolution. through VC/OAVM are as under:
(xi) Corporate/institutional members (i.e. other than 1. Members will be able to attend the 41st AGM
individuals, HUF, NRI, etc.) are required to send through VC/OAVM facility provided by KFin at
scanned image (pdf/jpg format) of certified true https://emeetings.kfintech.com by clicking on the
copy of relevant board resolution/authority letter tab ‘Video Conference’ and using their remote
etc. together with attested specimen signature e-voting login credentials. The link for 41st AGM
of the duly authorised signatory(ies) who is/are will be available in members login where the EVENT
authorised to vote, to the Scrutinizer through email and the name of the Company can be selected.
at srirampcs@gmail.com and may also upload the

2. Members who do not have User ID and Password 8. A video guide assisting the members attending 41st
for e-voting or have forgotten the User ID and AGM either as a speaker or participant is available for
Password may retrieve the same by following the quick reference at:
remote e-voting instructions mentioned under https://emeetings.kfintech.com/video/howitworks.aspx
heading ‘I’ above.
9. Members who need technical assistance before or
3. Members are encouraged to join the meeting during the 41st AGM can contact KFin at emeetings@
through Laptops with Google Chrome for better kfintech.com or helpline – 1800 345 4001.
experience.
IV. Instructions for e-voting at the 41st AGM are as under:-
4. Further, members will be required to allow camera,
1. The e-Voting “Thumb sign” on the left hand
if any, and hence use internet with a good speed to
corner of the video screen shall be activated upon
avoid any disturbance during the meeting.
instructions of the Chairman during the 41st AGM
5. While all efforts will be made to make the VC/ proceedings. Members shall click on the same to
OAVM meeting smooth, participants connecting take them to the “instapoll” page.
through mobile devices, tablets, laptops, etc.
2. Members to click on the “Instapoll” icon to reach
may, at times, experience audio/video loss due to
the resolution page and follow the instructions to
fluctuation in their respective networks. Use of a
vote on the resolutions.
stable Wi-Fi or LAN connection can mitigate some
of the technical glitches. 3. Only those Members, who will be present in the 41st
AGM through video conferencing facility and have
6. AGM Questions prior to 41st AGM: Members who would
not cast their vote through remote e-voting and are
like to express their views/ask questions during the 41st
otherwise not barred from doing so, shall be eligible
AGM may log into https://emeetings.kfintech.com/ and
to vote through e-voting at the 41st AGM.
click on “Post your Questions”. Thereafter, the Members
may post their queries/views in the window provided V. Scrutinizer’s Report and declaration of results:
by mentioning the name, demat account number/folio i. The Scrutinizer shall, immediately after the conclusion
number, email id, mobile number. “Post your Questions” of voting at the 41st AGM, first count the votes cast at the
shall commence on Sunday, August 09, 2020 (9:00 a.m. IST) meeting, thereafter unblock the votes through e-voting
and close on Wednesday, August 12, 2020 (5:00 p.m. IST). and make a consolidated Scrutinizers’ report of the total
Please note that only questions of the members holding the votes cast in favour or against, not later than 48(forty
shares as on cut-off date will be considered. eight) hours of the conclusion of the 41st AGM, to the
7. Speaker Registration during 41st AGM session: Chairman or a person authorized by him in writing,
Members who would to express their views/ask questions who shall countersign the same and declare the result of
during the 41st AGM may log into https://emeetings. the voting forthwith.
kfintech.com/ and click on “Speaker Registration” by ii. The results declared along with the Scrutinizer’s Report
mentioning the demat account number/folio number, shall be placed on the Company’s website www.stfc.in
city, email id, mobile number and submit. The speaker and on the website of Karvy at https://evoting.karvy.com/
registration shall commence on Sunday, August 09, 2020 immediately after the declaration of results by the Chairman
(9:00 a.m. IST) and close on Wednesday, August 12, 2020 and communicate to the National Stock Exchange of India
(5:00 p.m. IST). Only those Members who have registered Limited and BSE Limited. The resolutions shall be deemed
themselves as a speaker will be allowed to express their to be passed at the 41st AGM of the Company.
views/ask questions during the 41st AGM. The Company
reserves the right to restrict the number of speakers
depending on the availability of time for the 41st AGM.
By Order of the Board

For Shriram Transport Finance Company Ltd.
Mumbai Vivek Achwal

June 15, 2020 Company Secretary
Membership No. : ACS 8061
CIN: L65191TN1979PLC007874
Regd. Office: Mookambika Complex, 3rd Floor, No.4,
Lady Desika Road, Mylapore, Chennai - 600 004
Tel No: +91 44 2499 0356 Fax: +91 44 2499 3272.
314 Notice 2019-20

NOTICE
ANNEXURE TO NOTICE
Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013
ITEM NO. 5 ITEM NO. 6

Section 180(1)(a) of the Companies Act, 2013 (‘the Act’), The Company is one of the leading asset financing non-
provides that the Board of Directors of a company shall not banking financial companies (NBFC), primarily engaged
except with the consent of the Company in General Meeting, in the business of financing of the pre-owned commercial
by way of Special Resolution, sell, lease or otherwise dispose vehicles in the goods and passenger transportation sector of
of the whole, or substantially the whole, of the undertaking of the country. Being NBFC, the Company borrows funds from
the Company. Explanation of “undertaking” for the purpose the lenders by availing various fund-based and non-fund
of Section 180(1)(a) of the Act, shall mean an undertaking in based credit facilities including terms loans, demand loans,
which the investment of the company exceeds twenty percent working capital loans, letter(s) of credit, bill discounting,
of its net worth as per the audited balance sheet of the corporate guarantee (Loan(s)) in the ordinary course of its
preceding financial year or an undertaking which generates business from bank(s) and financial institution(s) (Lender(s))
twenty percent of the total income of the company during the for onward lending, from time to time. In this connection,
previous financial year. the Company has executed/will be required to execute loan
The Company is required to raise funds by way of securitization agreement(s), deed(s) of hypothecation, mortgage deed(s),
of receivables by way of sale /assignment. The outstanding undertaking(s), indemnity(ies), declaration(s), affidavit(s),
Securitization assets portfolio of the Company as on March document(s) and papers (‘Financing Documents’) to provide
31, 2020 was Rs. 21,612.72 crores and outstanding direct security to the Lenders for due repayment and serving of the
assigned portfolio stood at Rs. 1,247.53 crores. The members Loan(s) from time to time. The Company is also required to
of the Company by way of special resolution passed on July agree and accept modification(s) in the Financing Documents
09, 2014 through postal ballot/e-voting had authorised the from time to time as may be required by the lender(s). As
Board of Directors to securitize receivables by way of sale / on March 31, 2020, the outstanding amount of the Loans
assignment from time to time provided that outstanding availed by the Company from the Lenders was Rs. 21,022.56
amounts of such securitization at any point of time shall not crores. This amount may increase or decrease in the course of
exceed Rs. 30,000 crores. business of the Company within the limit(s) approved by the
Members pursuant to provisions of Section 180(1)(c) of the
During the current financial year 2020-21 the Company will
Companies Act, 2013 (‘the Act’).
continuously review its borrowing options for optimization
of borrowing costs, maintaining good liquidity for its One of the standard clauses of the Financing Documents
business growth and timely servicing of liabilities. Therefore, executed/to be executed by the Company in favour of the
depending upon the market conditions, the Company may Lender(s) provide that in case of the occurrence of an Event of
require higher limits for securitization than the existing limit Default which is not corrected/cured by the Company within
of Rs. 30,000 crore. The limit of Rs. 40,000 as proposed in the the period stipulated in the Financing Document(s) or in case
Special Resolution at item no. 5 of the Notice will give adequate of restructuring of debt, the Lender(s) shall have the right
flexibility to the Company to change its borrowing profile to convert the outstanding amounts of the Loan(s) together
depending upon market conditions. With securitization, the with all interest, default interest, additional interest, costs, fees,
Company ensures better borrowing profile, leading to lower charges and other monies in relation to the Loan(s), to equity
interest liability owing to its lending to priority sector as or other capital of the Company. The price of the shares for
per Reserve Bank of India. The securitization of receivables conversion of the Loan(s) will be determined in accordance
may result into disposal of undertaking as defined in the with the applicable regulations of Securities and Exchange
Explanation to Section 180(1)(a) of the Act. The resolution Board of India or the directions of Reserve Bank of India, in
proposed at item no.5 is to seek the permission of the members accordance with the applicable regulatory guidelines.
for enhancement of limits for selling, assigning, securitizing Pursuant to the proviso to Section 62(3) of the Act approval of
Receivables under Section 180(1) (a) of the Act by the Board the company by way passing Special Resolution is necessary
of Directors of the Company or its Committee as may be to convert the loan into shares in the Company.
authorised by the Board of Directors. The Company has a good track record of timely repayment
The Board of Directors commend passing of the said resolution. of Loan(s) and interest due thereon. In the opinion of the
None of the directors, key managerial personnel of the Board, there are no events or circumstances causing or
Company nor their relatives are concerned or interested, likely to cause occurrence of the Event of Default resulting
financially or otherwise in the said resolution. into conversion of Loan(s) into equity or other capital of the
Company in the near future.

This enabling special resolution is proposed to be passed as The issue of Equity Shares and /or other Eligible Securities
per the requirement of the Financing Documents executed shall be made having due regard to the prevailing market
and/or to be executed by the Company in favour of the conditions and any other relevant factors. The detailed terms
Lender(s). Hence, approval of the members of the Company and conditions for the issue(s)/offering(s) including price and
by way of passing Special Resolution is sought as per timing of the Issue will be determined by the Board (which
requirement of the provision of Section 62(3) or any other shall mean and include the Securities Issuance Committee)
applicable provisions of the Act. in its sole discretion in consultation with the advisors,
The Board commends passing of the special resolution as per book running lead managers and such other authority or
item 6 of the Notice. authorities as may be necessary.
None of the directors, key managerial personnel of the The allotment of the Equity Shares and/or other Eligible
Company nor their relatives are concerned or interested, Securities shall be completed within a period of 365 days
financially or otherwise in the said resolution. from passing of this resolution or such other time as may be
allowed under SEBI-ICDR Regulations.
ITEM NO. 7 The resolutions proposed are enabling approvals and the
The Board of Directors in its meeting held on June 15, 2020 exact combination of instrument(s), exact price, proportion
approved fund raising up to Rs.4,000 crores consisting of Rights and timing of the issue of the Equity Shares and/or or other
Issue of Equity Shares up to Rs. 1,500 crores to be offered to the Eligible Securities in one or more tranches and/or issuances
existing Eligible Equity Shareholders on the Record Date to be and the detailed terms and conditions of such tranche(s)/
announced in due course. The Board of Directors had further issuances will be decided by the Board in consultation with
approved an issuance of Equity Shares and/or other Eligible lead managers, advisors and such other authorities and
Securities aggregating to Rs. 2,500 crores through various agencies as may be required to be consulted by the Company
permissible modes including qualified institution placement in due consideration of prevailing market conditions and
(QIP), public issue, private placement, etc. other relevant factors after meeting the specific requirements
The Board considers that strengthening the Company’s capital in a manner that the aggregate amount of proceeds in one or
base and balance sheet is important and the proposal of fund more issuances or tranches shall not exceed overall limit of
raising up to Rs. 2,500 crores will help the Company to augment Rs. 2,500 crores or its equivalent in other currency(ies).
the long term resources for meeting funding requirements The proposals therefore seek to confer upon the Board the
of its business activities, financing the future growth absolute discretion and adequate flexibility to determine the
opportunities, general corporate purposes and other purposes terms of issue(s) and to take all steps which are incidental
including effectively facing challenges of the uncertainties and and ancillary. As the pricing of the offer cannot be decided
disruptions caused by COVID-19 pandemic. except at a later stage, it is not possible to state upfront the
The type of securities could be Equity shares and/or fully price of Equity Shares and/or other Eligible Securities to be
convertible debentures/partly convertible debentures, issued. However, the same would be in accordance with the
secured and/or unsecured Foreign Currency Convertible provisions of the Securities and Exchange Board of India (Issue
Bonds (FCCBs), non-convertible debentures with warrants of Capital and Disclosure Requirements) Regulations, 2018
convertible into Equity Shares, preference shares convertible (the “ICDR Regulations”), the Securities and Exchange Board
into Equity Shares, and/or any other financial instruments of India (Issue and Listing of Debt Securities) Regulations,
convertible into Equity Shares (including warrants, or 2008, the Securities and Exchange Board of India (Listing
otherwise, in registered or bearer form) and/or any security Obligations and Disclosure Requirements) Regulations,
convertible into Equity Shares and/or securities linked to Equity 2015, the Foreign Exchange Management Act, 1999, the
Shares and/or securities with or without detachable warrants Companies Act, the Issue of Foreign Currency Convertible
with right exercisable by the warrant holders to convert or Bonds and Ordinary Shares (Through Depository Receipt
subscribe to Equity Shares or any combination thereof (‘other Mechanism) Scheme, 1993, the Depository Receipts Scheme,
Eligible Securities’) depending upon the prevailing market 2014, the Foreign Exchange Management (Borrowing and
conditions. One or more Qualified Institutions Placement(s), Lending) Regulations, 2018, the Master Direction - External
public issue(s), private placement(s) could be used to issue Commercial Borrowings, Trade Credits and Structured
such Equity shares or other Eligible Securities in one or Obligations, 2019, the Foreign Exchange Management (Debt
more tranches and/or one or more issuances for an aggregate Instruments) Regulations, 2019, the Foreign Exchange
amount up to and not exceeding Rs. 2500 crores. Management (Non-debt Instruments) Rules, 2019 or any
other guidelines/ regulations/ consents, each as amended, as
It is proposed to seek approval of the shareholders through
may be applicable or required.
the enabling resolution for raising of funds for an amount up
to Rs. 2,500 crores or its equivalent in any other currency(ies) In the event of the issue of the Equity Shares and/or other
Eligible Securities as aforesaid by way of a QIP, the Special
316 Notice 2019-20

NOTICE
Resolution also seeks to empower the Board to undertake a of time and shall be disclosed by the Company under the
QIP as defined by ICDR Regulations, where pricing will be applicable regulations in due course (at appropriate times
determined in terms of the SEBI ICDR Regulations. and modes). Accordingly, it is proposed to authorize the
The ‘relevant date’ shall be determined in accordance Board to identify the investor(s), issue such number of Equity
with Regulation 171 of the SEBI ICDR Regulations, that Shares and/or other Eligible Securities, negotiate, finalize and
is, for Equity Shares, it shall be the date of the meeting of execute such documents and agreements as may be required
the Board where the decision for opening of the QIP issue and do all such acts, deeds and things in this regard for and
for subscription is taken. For other Eligible Securities, the on behalf of the Company. The issue/ allotment/ conversion
‘relevant date’ shall be the date of the meeting of the Board would be subject to the applicable regulatory approvals,
decides to open the issue of such eligible other Eligible if any. The conversion of other Eligible Securities held by
Securities or the date on which the holders of such other foreign investors into Equity Shares would be subject to
Eligible Securities become entitled to apply for the Equity the applicable foreign investment cap and relevant foreign
Shares. exchange regulations.
Further, Section 62(1)(a) of the Companies Act, 2013 The Board commends passing of the Special Resolution as
(the “Companies Act”) provides, inter alia, that when it is per item 7 of the Notice.
proposed to increase the subscribed capital of the company None of the Directors, key managerial personnel of the
by issue of further shares, such further shares shall be Company and their relatives is concerned or interested in
offered to existing Members of such company in the manner this resolution, except to the extent of Equity Shares and /
laid down therein unless the Members by way of a Special or other Eligible Securities issued/allotted to the entities in
Resolution decide otherwise. Since the Special Resolution which they are directors or members.
proposed at item No. 7 of the Notice may result in the issue This Notice does not constitute an offer or invitation or
of Equity shares of the Company to persons other than solicitation of an offer of securities to the public within or
existing Members of the Company, approval of Members is outside India. Nothing in this Notice constitutes an offer of
being sought pursuant to provisions of Section 62(1)(c) and securities for sale or solicitation in any jurisdiction in which
other applicable provisions of the Companies Act as well as such offer or solicitation is not authorized or where it is
applicable rules notified by the Ministry of Corporate Affairs unlawful to do so.
and in terms of SEBI-LODR Regulations. The approval of
the Members is being sought pursuant to the provisions This announcement is not an offer of securities for sale in the
of Section 23, 42, 71 and other applicable provisions of the United States. Any securities referred to herein have not been
Companies Act and Rules notified under the Act, applicable and will not be registered under the United States Securities
regulations of SEBI including the SEBI ICDR Regulations, to Act of 1933, as amended (‘the Securities Act’) or any United
the extent applicable. States state securities laws, and may not be offered or sold in
the United States except pursuant to an exemption from or in a
The Board will take all steps to implement the proposal
transaction not subject to, the registration requirements of the
including but not limited to appointment of merchant bankers
Securities Act and in accordance with any applicable United
, book running lead managers, lead managers, legal advisors,
States state securities laws. There is no intention to register any
depository, custodians, registrar, escrow agents and other
securities referred to herein in the United States or to make a
intermediaries to advise and assist the Company regarding
public offering of the securities in the United States.
the issue of Equity Shares and/or other Eligible Securities,
meeting and negotiating with the potential investors.
The Equity Shares to be allotted would be listed on one or By Order of the Board
more stock exchanges. The offer/ issue/ allotment of the
Equity Shares and/or other Eligible Securities would be For Shriram Transport Finance Company Ltd.
subject to the availability of the regulatory approvals, if any.
In connection with the proposed issue of the Equity Shares Mumbai Vivek Achwal
and/ or the other Eligible Securities, the Company is June 15, 2020 Company Secretary
required, inter alia, to prepare various documentations and CIN: L65191TN1979PLC007874
execute various agreements. The Company is yet to identify Regd. Office: Mookambika Complex, 3rd Floor, No.4,
the investor(s) and decide the quantum of Equity Share and/ Lady Desika Road, Mylapore, Chennai - 600 004
or other Eligible Securities to be issued to them. Hence, the
Tel No: +91 44 2499 0356 Fax: +91 44 2499 3272.
details of the proposed allottees, percentage of post offer
holding that may be held by them and post offer holding
pattern of Equity Shares and /or other Eligible Securities of
the Company and other details are not available at this point

Information as required under Regulation 36(3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations 2015 and SS2 - Secretarial Standard on General Meetings with respect to Director’s re-appointment:
Name of Director Mr. Puneet Bhatia (Non-Executive/ Non Independent Director)

Date of Birth and Age 16/12/1966 and 53 years
DIN 00143973
Date of appointment / first appointment on the October 26, 2006
Board
Nationality Indian
Expertise in specific functional areas Wide experience in the field of finance and worked with one of the first private equity
firm to invest in Asia as Managing Director and Country Head
Qualifications Bachelor’s degree in Commerce and MBA from IIM – Calcutta.
Directorship held in other companies 1.Havells India Limited.
2.Sai Life Sciences Limited.
3.R R Kabel Limited.
4.Ram Ratna Electricals Limited.
5.Jana Small Finance Bank Limited.
6.Shriram Capital Limited.
7.Jana Capital Limited.
8.TPG Capital India Private Limited.
9.Flare Estate Private Limited.
10.Campus Activewear Private Limited.
11.Manipal Health Enterprises Private Limited.
Membership/ Chairmanship of Committees of other Shriram Capital Limited
public companies (includes only Audit Committees Member – Audit Committee
and Stakeholders Relationship Committee)
Shareholdings in the Company NIL
Disclosure of relationships between directors/Key There is no inter-se relationship between Mr. Puneet Bhatia and the directors on the
Managerial Personnel inter-se. Board of Directors of the Company and Key Managerial Personnel.
Remuneration to be paid and received from the Nil being a Non-Executive Non- Independent Director.
Company in the F.Y. 2019-20
Terms and conditions of re-appointment along with Director liable to retirement by rotation. No Remuneration is paid to Non-Executive
details of remuneration sought to be paid Non-Independent Director.
The number of Meetings of the Board attended 3 Meetings attended out 6 Board Meetings held.
during the F.Y. 2019-20
BRIEF PROFILE OF MR. PUNEET BHATIA

Puneet Bhatia is the Co-Managing Partner for TPG Capital Asia and the head of TPG Capital India. He has created and led over
a dozen transactions and invested close to $2bn for TPG Capital in India including Matrix Laboratories, Vishal Retail, invested
over $500m in the Shriram group in four of the group companies, in Manipal Hospitals, Union Bank of Colombo PLC and Jana
Capital Ltd and recently in the largest private equity transaction in India in UPL, Sai Pharma and RR Kabel. He currently serves
on the Board of Directors of these companies.
Prior to joining TPG in April 2002, Mr. Bhatia was Chief Executive, Private Equity Group for GE Capital India (“GE Capital”),
where he was responsible for conceptualizing and creating its direct and strategic private equity investment group. As Chief
Executive, he created and handled a portfolio of almost a dozen companies such as TCS, Patni Computers, BirlaSoft, Sierra
Atlantic, iGate, Indus Software and Rediff. He was also responsible for consummating some of GE Capital’s joint ventures in
India. Prior to this, Mr. Bhatia was with ICICI Ltd from 1990 to 1995 in the Project and Corporate Finance group and worked as
Senior Analyst with Crosby Securities from 1995 to 1996. Mr. Bhatia was born, grew up in and is based in India. He has a B.Com
Honors degree from the Sriram College of Commerce, Delhi and an MBA from the Indian Institute of Management, Calcutta. The
Nomination and Remuneration Committee in its meeting held on April 29, 2020 as well as the Board of Directors in its meeting
held on June 10, 2020 recommend re-appointment of Mr. Puneet Bhatia a non-executive non-independent director, liable to retire
by rotation. Except Mr. Puneet Bhatia, none of the Directors, Key Managerial Personnel of the Company nor their relatives are
concerned or interested, financially or otherwise in the proposed resolution as set out in item no. 3 of the Notice.
318 Notice 2019-20

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Shriram: Vivek Achival Company

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SHRIRAM

Trenspart Finance Cornpany Limited

SEC/FILING/NSE-BSE/20-21/68B July 24, 2020

The Secretary National Stock Exchange of India Limited

In compliance with the General

Kindly take the same on record.

Forward looking statement

Corporate Identity Number (CIN)

Auditors List of Banks

Shriram Transport Finance Company Limited 1

Shriram Transport Finance Company Limited (STFC)

Established in 1979, STFC is an asset financing

Headquartered in Mumbai, STFC has played a

2 Annual Report 2019-20

STFC, being a pioneer in pre-owned CV segment, has institutionalized its

STFC is listed on the BSE Ltd (stock code:

Shriram Transport Finance Company Limited 3

Assets under management stands at Rs. 109,750 crores

Securitisation done during the year Rs. 16,581 crores

Total income for the year Rs. 16,583 crores

Profit after tax for the year Rs. 2,502 crores

Net interest income for the year Rs. 7,917 crores

Earnings per share for the year Rs. 110.27

4 Annual Report 2019-20

Assets under management (Rs. crores) Total income (Rs. crores)

100000 95,306 96,253 14000

On books Off books

Net interest income (Rs. crores) Net profit (Rs. crores)

* Figures as per IGAAP. # Figures as per Ind AS.

Shriram Transport Finance Company Limited 5

EPS (Basic) (Rs.) NPA/stage 3 (%)

*IGAAP Gross NPA net npa

* Figures as per IGAAP. # Figures as per Ind AS.

6 Annual Report 2019-20

Branch Network as on March 31, 2020 : 1,758 BRANCHES

Jammu & Kashmir 10

Madhya Pradesh 130 Jharkhand 34

Dadra and Nagar Haveli 1 Odisha 35

Tamil Nadu 384

Shriram Transport Finance Company Limited 7

SHRIRAM WAY OF DOING BUSINESS

8 Annual Report 2019-20

Area of Focus Action

Shriram Transport Finance Company Limited 9

Name of the Program No. of Employees Covered

10 Annual Report 2019-20

CUSTOMER LOAN ASSET

Shriram Transport Finance Company Limited 11

FY 2018 – 2019 FY 2019 - 2020

EDUCATIONAL REGULAR SCHOLARSHIP

Year BELOW 8th 8th 9th 10th 11th 12th TOTAL

HIGHER EDUCATION SCHOLARSHIP

12 Annual Report 2019-20

Shriram Transport Finance Company Limited 13

14 Annual Report 2019-20

Shriram Transport Finance Company Limited 15

FINANCIAL AND OPERATIONAL PERFORMANCE (as per Ind AS)

16 Annual Report 2019-20

COMMERCIAL AND PASSENGER VEHICLE techniques, relationship-based approach, extensive branch

Name of Independent Category Remuneration Remuneration % Increase in Ratio of Remuneration