Annual Report 2020 Compressed 2

LENDINGKA T
Think cash, Think Lendingkart Group!
Annual Report
FOR THE YEAR ENDED MARCH 31, 2020
LENDINGKART FINANCE LIMITED

Chairman’s Letter
Dear Shareholders & fellow Lendingkart-ians,
We are fortunate in this decade to be part of a fast-paced economy and the new generation of entrepreneurs
from ‘Bharat’ who are currently executing the businesses with flexibility and simplicity that comes with digital
technology.
Penetration of data connectivity and hardware at affordable prices is helping more and more MSMEs move
from traditional to digital methodologies. Today the rural population is at similar footing as city suburbs in
terms of business visibility, sourcing and competitive product pricing. As a result, these businesses have seen
a surge in their product/ services demands, giving rise to working capital requirements. However, majority of
businesses are from the unorganised sector, barely possessing any recorded financial history, which affects
their credit taking capability. They have to resort to informal sources to address their financial requirements
and end up paying higher rates on loans borrowed, clogging their business growth, even keeping high collateral
for their loans.
Against this backdrop, we decided to change the paradigm and address the credit gap of USD 400 Bn in this
segment. We have built the right kind of origination platform to provide them easy and convenient access,
we have tied up with right kind of data sources to evaluate their cash flows and then digitised the delivery and
collections of loans.
As of Mar 2020, Lendingkart has evaluated more than 750,000 loan applications. The customer can
conveniently reach to us either on our i) Mobile app ii) mobile web or iii) regular web, which all have a
seamless experience. He just needs to provide us his banking data as information for evaluating his cash flows.
He can either upload them on system or give us access to his data through verified sources. Once his data is
collected our system automatically translates it into machine readable format which then goes into our
proprietary decision engine to evaluate the borrower. The credit models deployed by us are self-learning. A
champion model is in continuous production while newer and more effective challenger models are being
continuously worked by the in-house team.
Lendingkart Customer Profile:
Our focus has been young and educated digitally savvy entrpreneures who are based
in non-metro cities and have growing micro enterprises, across wide range of
industries. Our customer base is comrpised of young enterpreneurs with 60% under
35 years of age and ~88% under 45 years. 81% of these businesses are based in non-
metro cities and their primary driectors are graduates and above using smart phones
and business revenue less than Rs 25 Lacs. These businesses employ <=10
employees and have been opertaional for less than 3 years at time of loan
applications. 20% customers are new to credit and hence now included in the
formal economy.
Industry
Technological improvements:
We have strived for a strong IT infrastructure to support the new age sourcing, information gathering and
processing, delivery & risk control and reporting for the lending business.
 In FY 20, we streamlined internal processes and re-designed frameworks to strengthen our end to
end funnel starting with origination by improving prioritization logics and extending the same to our
omnichannel partners for right reach.
 Based on our past learnings, a pilot straight through journey with zero touch points and 100%
transparency of the loan process to our customers and partners has been developed and implemented.
In the coming year, we have taken a self-goal to extend this platform capability for the 75 percentile
of our customers, for a loan to be offered to them within 24 hours of their application.
 For an effective and successful digitization of the customer journey, we have digitized our risk
framework by integrating our platform with best in class fraud check to identify any kind of potential
fraud in real time.
 One of the major achievements this year has been revamping our loan delivery method by adopting
optimized phygital approach and turnaround time being reduced by ~45% by leveraging technology
at every stage possible with emphasis to highlight and resolve any pendency.
 We have been at the forefront of implementing video Kyc, participating with India stack, e-NACH,
e-sign, which has tremendously enhanced our capability to deliver our offering to remotest locations
and hinterlands in the country. We have currently delivered our loans to more than 1300+ locations
pan India, with almost ‘0’ branches.
Boosting growth through innovation in distribution and partnerships:
Our aim has been to make finance solutions available to our customers either through us or through our
partners. In this effort we have taken multiple steps in FY’20.
 During the year we started making gold loan available to our customers in our distribution funnel
who either due to lack of information, different need or credit quality we could not serve.
 We have partnered in co-lending relationships with Banks & NBFCs. With these relationships we are
able to offer better loan terms to our borrowers. Further we have been able to give our partners a
chance to serve MSMEs as well through our platform and thereby increase our reach overall. These
relationships have been smoothly functioning via an inhouse developed platform that enables
seamless real-time information flow between Lendingkart and its partners for minimum turnaround
time. We aim to collaborate with them to increase our portfolio exposure to 50% with our co-lenders.
 While serving our customers we realized that a lot of their families did not have access to rightful
insurance products. We then worked with newer insur-tech startups like Digit & Acko and established
brands like HFDC Ergo, Max Life & Tata AIG to design affordable and relevant products for them.
 While working with our partners on our distribution/origination platform we realized how they faced
regular problems in registering themselves with multiple institutions, providing data and accessing
accounting and payments from them. We have taken a target to build a platform for our omnichannel
partners where they can easily access us and serve MSMEs. Also in future they get seamless access to
other partners as well who work with us in our eco-system. We currently have more than 100 active
partners working with us on our platform.
Best in class MSME portfolio:
We closely monitor the NPAs and develop model based on learnings, industry and policy changes,
LendingKart's Machine Learning Algorithm and Models works on close to 10,000 variables, and has proven
to perform better for New to Credit MSMEs than 651-700 CIBIL score @ 6MoB-30+ rate. Lendingkart has
always been proactive in evaluating the early warning triggers and formulating mitigation strategies to address
the probable risks.
Business Performance:
In context of credit growth, Lendingkart has maintained its performance and the key figures are:
 New loans booked during FY2020 were 52,835, an increase of 45% over last FY
 Assets under management (AUM) grew by 77.2% to Rs 2428.8 Crores as of 31 March 2020
 Total income in FY20 increased by 112.94% to Rs 464.3 Crores from last FY
 Lendingkart has maintained the profitability of its NBFC arm, which only a few fin-techs have
achieved in the country.
 With the continuous hard work from team, Lendingkart has secured an upgrade in Credit rating to
A-/ Stable Outlook from credit agencies.
 Lendingkart is only one of the few lenders in MSME space which has more than 80 % of its portfolio
insured under Credit Guarantee Scheme (CGTSME) of Central government. This scheme provides
almost 75 % cover on the cost of default of the company.
Business Continuity Plan in times of Crisis:
In the ongoing year, the world is seeing the COVID -19 pandemic and its impact on all sectors of the world
economy. MSMEs in India have been impacted severely by pandemic induced lockdown and RBI has
announced credit reliefs and credit guarantee schemes to push more liquidity towards MSMEs. There has
been a wide opportunity segment foreseen for MSMEs due to the disruption in global demand & supply, and
supply chain as well, especially China, leading to an enforced rigor on making Bharat Atmanirbhar.
At the start of the lockdown period, we simulated various scenarios based on industry, geographical areas,
businesses segment and their impacts for planning the business for the coming year. The fundamental idea
was to help our existing customers and be empathetic towards them since they were going through one of
the most struggling times. We spoke to all our customers during the lockdown enquiring about their and
family’s wellness and how we could help them. This approach and internal efforts have gone a long way for
us in managing our collections during these times and allowing us to achieve numbers which are again best in
class. We as a firm have come out stronger with our employees having outperformed expectations while
working from home, enabling us to deliver a resilient performance during this time.
I am confident that the series of actions being taken by the governments and companies will succeed and
show an improved performance in the MSME segment in. Lendingkart hopes to be at the forefront to support
the sector in bringing this change.
For each of the functions this year, the focus shall be on driving cost efficiencies, enhancing product delivery,
leveraging the tech infrastructure, and building a more scalable and sustainable business.
I would like to thank fellow Lendingkart-ians, our partners and lenders and all other stakeholders for their
support, belief and commitment to us during last year. Hope to continue to build Lendingkart to be a company
we are all proud of.
Wishing all of you a safe year ahead.
Hashvardhan Lunia
Chairman & Managing Director
Lendingkart Finance Limited
12th Floor, The Ruby
29 Senapati Bapat Marg
Dadar (West)
Chartered Accountants
Mumbai-400028, India
Tel: +91 22 6819 8000
INDEPENDENT AUDITOR’S REPORT
To the Members of Lendingkart Finance Limited
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of Lendingkart Finance Limited (“the
Company”), which comprise the Balance sheet as at March 31 2020, the Statement of Profit and
Loss, including Other Comprehensive Income, the Cash Flow Statement and the Statement of
Changes in Equity for the year then ended, and notes to the Ind AS financial statements, including a
summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Ind AS financial statements give the information required by the Companies Act, 2013, as
amended (“the Act”) in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2020, its profit including other comprehensive income, its cash flows and the changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Ind AS Financial
Statements’ section of our report. We are independent of the Company in accordance with the ‘Code
of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial
statements.
Emphasis of Matter
We draw attention to note 2.2 to the Ind AS financial statements, which describes the uncertainty
caused by Novel Coronavirus (COVID-19) pandemic with respect to the Company’s estimates of
impairment of loans to customers and that such estimates may be affected by the severity and
duration of the pandemic.
Our opinion is not modified in respect of this matter.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the Board of director’s report but does not include the Ind AS
financial statements and our auditor’s report thereon.
Our opinion on the Ind AS financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
Responsibility of Management for the Ind AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these Ind AS financial statements that give a true and fair view of
the financial position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the Ind AS
financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the Ind AS financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Ind AS financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether the Company has adequate internal
financial controls with reference to financial statements in place and the operating effectiveness
of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS financial statements,
including the disclosures, and whether the Ind AS financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act we give in
the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company
so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are
in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2020
taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2020 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company with reference to these Ind AS financial statements and the operating effectiveness
of such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2020 has been
paid / provided by the Company to its directors in accordance with the provisions of section
197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and
to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
For S.R. Batliboi & Co. LLP

ICAI Firm Registration Number: 301003E/E300005
per Jayesh Gandhi

Partner
Membership Number: 037924
UDIN: 20037924AAAAEC1140
Place of Signature: Mumbai

Date: June 30, 2020
Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and regulatory
requirements” of our report of even date
Re: Lendingkart Finance Limited
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year and no
material discrepancies were identified on such verification.
(c) According to the information and explanations given by the management, there are no
immovable properties, included in property, plant and equipment of the company and
accordingly, the requirements under paragraph 3(i)(c) of the Order are not applicable to the
Company.
(ii) The Company’s business does not involve inventories and, accordingly, the requirements
under paragraph 3(ii) of the Order are not applicable to the Company.
(iii) According to the information and explanations given to us, 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 Companies Act, 2013.
Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the order are not applicable to
the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, there are no
loans, investments, guarantees, and securities given in respect of which provisions of
section 185 and 186 of the Companies Act 2013 are applicable and hence not commented
upon.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the
Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly,
the provisions of clause 3(v) of the Order are not applicable.
(vi) To the best of our knowledge and as explained, the Central Government has not specified
the maintenance of cost records under Section 148(1) of the Companies Act, 2013, for the
services of the Company.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, employees’ state insurance, income-tax, goods and service
tax, cess and other statutory dues applicable to it.
As informed, the provisions of sales-tax, duty of custom, duty of excise and value added
taxes are currently not applicable to the Company.
(b) According to the information and explanations given to us, no undisputed amounts payable
in respect of provident fund, employees’ state insurance, income-tax, goods and service
tax, cess and other statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to us, there are no dues of income tax,
goods and service tax and cess which have not been deposited on account of any dispute.
(viii) In our opinion and according to the information and explanations given by the management,
the Company has not defaulted in repayment of loans or borrowing to a financial institution,
bank or dues to debenture holders.
As informed, the provisions of repayment of loans or borrowing to government are currently

not applicable to the Company.
(ix) According to the information and explanations given by the management, the Company has
not raised any money by way of initial public offer or further public offer and hence not
commented upon.
Further, monies raised by the Company by way of debt instrument and term loans were
applied for the purpose for which those were raised, though idle/surplus funds which were
not required for immediate utilization were gainfully invested in liquid assets payable on
demand.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair
view of the financial statements and according to the information and explanations given
by the management, we report that no fraud by the Company or no fraud on the Company
by the officers, and employees of the Company has been noticed or reported during the
year.
(xi) According to the information and explanations given by the management, the managerial
remuneration has been paid / provided in accordance with the cost sharing arrangement
with the holding Company. Accordingly, no specific reporting under clause 3(xi) has been
made.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause
3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with
the related parties are in compliance with section 177 and 188 of the Act where applicable
and the details have been disclosed in the notes to the financial statements, as required by
the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of
the balance sheet, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under review
and hence, reporting requirements under clause 3(xiv) are not applicable to the Company
and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has
not entered into any non-cash transactions with directors or persons connected with him
as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, we report that the Company has
registered as required, under section 45-IA of the Reserve Bank of India Act, 1934.

per Jayesh Gandhi

Partner

Date: June 30, 2020
Annexure 2 referred to in paragraph 2 (f) under the heading “Report on other legal and regulatory
requirements” of our report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Act
We have audited the internal financial controls over financial reporting of Lendingkart Finance
Limited (“the Company”) as of March 31, 2020 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants
of India. These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the Company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as required under
the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting with reference to these standalone financial statements based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10)
of the Act, to the extent applicable to an audit of internal financial controls and, both issued by the
Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting with reference to these
standalone financial statements was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls over financial reporting with reference to these standalone financial statements
and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting with
reference to these standalone financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the internal financial controls over financial reporting with reference to these
standalone financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Financial
Statements
A company's internal financial control over financial reporting with reference to these standalone
financial statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company's internal financial control over financial
reporting with reference to these standalone financial statements includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorisations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material
effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to
these Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting with
reference to these standalone financial statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls over financial
reporting with reference to these standalone financial statements to future periods are subject to
the risk that the internal financial control over financial reporting with reference to these standalone
financial statements may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls over
financial reporting with reference to these standalone financial statements and such internal
financial controls over financial reporting with reference to these standalone financial statements
were operating effectively as at March 31, 2020, based on the internal control over financial
reporting criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.

per Jayesh Gandhi

Partner

Date: June 30, 2020
Balance Sheet as at 31 March 2020 (₹ in lakhs unless otherwise stated)
As at 31 March As at 31 March As at 01 April
Particulars Notes
2020 2019 2018
Assets
Financial assets
Cash and cash equivalents 6 5,049.52 16,550.74 3,692.50
Bank balances other than cash and cash equivalents 7 11,296.78 7,303.59 5,617.05
Loans 8 2,12,688.51 1,31,262.70 42,850.40
Other financial assets 9 2,868.74 458.63 230.04
2,31,903.55 1,55,575.66 52,389.99
Non-financial assets
Tax assets (Net) 10 162.08 250.93 161.44
Deferred tax asset (Net) 11 1,858.65 1,671.82 -
Property, plant and equipment 12 307.92 226.15 130.39
Intangible assets 13 119.58 60.35 26.03
Intangible assets under development 45.45 14.76 -
Right-of-use assets 12 3,213.65 1,672.67 866.15
Other non-financial assets 14 588.50 159.09 124.79
6,295.83 4,055.77 1,308.80
Total assets 2,38,199.38 1,59,631.43 53,698.79
Liabilities and Equity

Liabilities
Financial liabilities
Debt Securities 15 44,407.37 38,795.35 3,320.18
Borrowings (Other than debt securities) 16 1,10,561.24 65,180.24 33,419.19
Subordinated Debt 17 2,528.44 2,528.14 1,008.90
Other financial liabilities 18 7,374.86 4,001.50 2,436.76
1,64,871.91 1,10,505.23 40,185.03
Non-financial liabilities
Provisions 19 378.47 334.59 202.07
Other non-financial liabilities 20 661.75 442.76 238.29
1,040.22 777.35 440.36
Equity
Equity share capital 21 4,418.79 3,898.59 2,939.13
Other equity 22 67,868.46 44,450.26 10,134.27
72,287.25 48,348.85 13,073.40
Total liabilities and equity 2,38,199.38 1,59,631.43 53,698.79

Summary of significant accounting policies 3
The accompanying notes are an integral part of the financial statements
For S. R. BATLIBOI & CO. LLP For and on behalf of the Board of Directors of
Chartered Accountants Lendingkart Finance Limited
ICAI Firm Registration number : 301003E/E300005
per Jayesh Gandhi Harshvardhan Lunia

Partner Chairman & Managing Director
Membership No. 037924 DIN No. 01189114
Mithun Sundar
Chief Executive Officer
Mohit Bajaj Umesh Navani

Chief Financial officer Company Secretary
Membership No. 401316 Membership No. A40899
Place : Mumbai Place : Mumbai
Date : 30 June 2020 Date : 30 June 2020
Statement of Profit & Loss for the year ended 31 March 2020 (₹ in lakhs unless otherwise stated)
For the year ended For the year ended

Particulars Notes
31 March 2020 31 March 2019
Revenue from operations
Interest income 23 44,267.85 21,254.32
Gain on assignment of loans 24 1,721.87 525.37
Total revenue from operations 45,989.72 21,779.69
Other income 25 440.56 25.07
Total income 46,430.28 21,804.76
Expenses
Finance costs 26 17,716.50 8,114.33
Fees and commission expenses 27 729.80 329.98
Impairment of financial instruments 28 11,948.23 5,068.36
Employee benefit expenses 29 4,943.77 3,083.23
Depreciation and amortisation expenses 30 629.99 249.89
Other expenses 31 6,267.71 3,039.30
Total expenses 42,236.00 19,885.09
Profit before tax 4,194.28 1,919.67
Tax Expense : 32
- Current tax 1,407.18 820.93
- Prior period tax adjustments 3.28 -
- Deferred tax charge / (credit) (185.27) (1,673.25)
1,225.19 (852.32)
Profit after tax 2,969.09 2,771.99
Other comprehensive income
(a) Items that will not be reclassified to profit or loss
- Remeasurement gain / (losses) on defined benefit plans (5.37) 4.91
- Tax impact on above 32 1.56 (1.43)
Other comprehensive income (net of tax) (3.81) 3.48
Total comprehensive income 2,965.28 2,775.47
Earning per equity share (₹):

Basic 33 7.09 8.07
Diluted 33 7.09 8.07


Mithun Sundar


Statement of changes in equity for the year ended 31st March 2020 (₹ in lakhs unless otherwise stated)
Equity share capital

Particulars No of shares Amount
Balance as at 01 April 2018 2,93,91,259 2,939.13
Changes in equity share capital during the year 95,94,661 959.46
Balance at 31 March 2019 3,89,85,920 3,898.59
Changes in equity share capital during the year 52,02,011 520.20
Balance at 31 March 2020 4,41,87,931 4,418.79
Other equity
Reserves and Surplus Other
Statutory Total other
Particulars Securities Retained Comprehensive
Reserve as per equity
premium earnings Income
RBI Act
Balance as at 01 April 2018 15,259.28 (5,125.66) 0.65 - 10,134.27
Profit after tax - 2,775.46 - - 2,775.46
Other comprehensive income (net of tax) - (3.48) - 3.48 -
Transferred to Statutory Reserve u/s section 45-IC of RBI Act, 1934 - (687.43) 687.43 - -
Premium on issue of Equity Shares 31,540.53 - - - 31,540.53
Balance at 31 March 2019 46,799.81 (3,041.11) 688.08 3.48 44,450.26
Profit after tax - 2,965.30 - - 2,965.30
Other comprehensive income (net of tax) - 3.81 - (3.81) -
Transferred to Statutory Reserve u/s section 45-IC of RBI Act, 1934 - (593.06) 593.06 - -
Premium on issue of Equity Shares 20,479.80 - - - 20,479.80
Share issue expense (26.89) - - - (26.89)
Balance at 31 March 2020 67,252.72 (665.05) 1,281.14 (0.33) 67,868.46


Mithun Sundar


Cash flow statement for the year ended 31 March 2020 (₹ in lakhs unless otherwise stated)
Particulars 31 March 2020 31 March 2019

Operating activities
Profit before tax 4,194.28 1,919.67
Adjusted for:
Impact of EIR accounting of financial assets 668.19 382.72
Impact of EIR accounting of financial liabilities (242.50) (280.12)
Upfront gain on direct assignment (1,721.87) (525.37)
Guarantee fees 1,119.08 -
Provision for gratuity 76.78 37.78
Provision for leave benefit (32.89) 94.74
Impairment of loans 1,925.10 2,397.17
Impairment of other financial assets 24.54 18.07
Bad debt written offs 10,004.49 2,653.12
Discount on commercial paper 176.97 264.21
Depreciation and amortisation 629.99 249.89
Share issue expenses - 41.62
Interest on bank deposits (1,380.87) (829.99)
Interest on borrowings and debt securities 15,904.34 7,027.49
Interest on financial lease liability 378.32 154.94
Reversal of Lease equalisation reserve (71.30) (30.46)
Loss/(profit) on sale of property, plant and equipment 3.11 15.36
Actuarial gain / ( loss) recognised in other comprehensive income (5.37) 4.91
Cash from operations before working capital changes 31,650.38 13,595.75
Changes in working capital:

- (Increase) / decrease in loans (1,02,934.76) (94,560.59)
- (Increase) / decrease in other financial assets (994.74) (61.89)
- (Increase) / decrease in other non financial assets (1,239.20) 3.37
- Increase / (decrease) in other financial liabilities 2,570.61 1,679.33
- Increase / (decrease) in other non financial liabilities 218.98 204.47
Cash generated from / (used in) operating activities (70,728.75) (79,139.56)
Income tax paid (net) (1,321.61) (910.42)
Net cash flows from / (used in) operating activities (I) (72,050.36) (80,049.98)
Investing activities:
Purchase of property, plant and equipment and intangible assets (437.64) (288.35)
Proceeds from sale of property, plant and equipment 0.10 2.44
Fixed deposit matured (3,971.16) (1,667.24)
Interest received on bank deposit 1,358.85 810.68
Net cash generated from / (used in) investing activities (II) (3,049.85) (1,142.47)
Financing activities:
Issue of equity share capital (including securities premium) 21,000.00 27,500.00
Share issue expenses (26.89) (41.62)
Proceeds from inter-corporate loan* 1,000.00 5,000.00
Repayment of inter-corporate loan (1,000.00) (0.00)
Proceeds from debt securities 30,897.50 37,000.00
Repayment of debt securities (21,908.18) (5,944.13)
Proceeds from other than debt securities 85,598.66 65,408.79
Repayment of other than debt securities (60,929.27) (38,384.24)
Proceeds from subordinated debt - 1,500.00
Change in Cash Credit / Overdraft 1,889.97 529.68
Repayment of lease liabilities (530.73) (201.02)
Proceeds from securitisation liability 22,660.56 8,021.88
Repayment of finance cost (15,052.63) (6,338.67)
Net cash generated from financing activities (III) 63,598.99 94,050.69
Cash flow statement for the year ended 31 March 2020 (₹ in lakhs unless otherwise stated)

Net increase / (decrease) in cash and cash equivalents (I+II+III) (11,501.22) 12,858.24
Cash and cash equivalents as at the beginning of the year 16,550.74 3,692.50
Cash and cash equivalents as at the end of the year 5,049.52 16,550.74
Components of cash and cash equivalents

Cash in hand - 0.28
Balances with banks
- With banks in current accounts 5,049.52 3,058.93
- In deposit accounts with original maturity of less than 3 months. - 13,491.53
Cash and cash equivalents 5,049.52 16,550.74
*During the financial year ended 31 March 2019, Inter-corporate loan from the Holding Company was converted into 14,76,101
number of equity shares of ₹ 10 each fully paid-up at a premium of ₹ 328.73 each, aggregating to ₹ 4,999.99. These items being non
cash in nature, are not reflected in the above cash flow statement.
The above cash flow statement has been prepared under the Indirect method as prescribed in Ind AS - 7 on Statement of cash-flows.


Mithun Sundar


Notes forming part of financial statements for the year ended 31 March 2020
(₹ in Lakhs unless otherwise stated)
1. Corporate information
Lendingkart Finance Limited (“the Company”) is a public limited company domiciled in India. The Company is a “Non-
Banking Financial Company” as defined under section 45-IA of the Reserve Bank of India (“RBI”) Act, 1934 and engaged
in the business of providing working capital loan to the Small and medium sized enterprises and others. The Company is
non deposit taking non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) with effect
from 15 April 2014, with Registration No. B-13.02085 (Issued in lieu of CoR No. B-09.00363). RBI, vide the circular –
‘Harmonisation of different categories of NBFCs’ issued on 22 February 2019, with a view to provide NBFCs with greater
operational flexibility and harmonisation of different categories of NBFCs into fewer categories based on the principle of
regulation by activity, merged the three categories of NBFCs viz. Asset Finance Companies (AFC), Loan Companies (LCs)
and Investment Companies (ICs) into a new category called NBFC – Investment and Credit Company (NBFC-ICC).
Accordingly, the Company has been reclassified as NBFC Investment and Credit Company (NBFC-ICC).
The Company has its registered office at A-303/304, Citi Point, Andheri-Kurla Road, Andheri (East), Mumbai, India. As
at 31 March 2020, Lendingkart Technologies Private Limited (“Holding Company”) owned 100% of the Company’s equity
share capital and has the ability to control its operating and financial policies.
2. Basis of preparation
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the
Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction – Non-Banking
Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 (‘the NBFC Master Directions’) issued by RBI. The financial statements have been prepared on a going
concern basis. The Company uses accrual basis of accounting except in case of significant uncertainties.
For all periods up to and including the year ended 31 March 2019, the company prepared its financial statements in
accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with
paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP or previous GAAP). The financial statements for the
year ended 31 March 2020 are the first financial statements, the Company has prepared in accordance with Ind AS.
The Company has applied Ind AS 101 ‘First-time Adoption of Indian Accounting Standards’, for transition from previous
GAAP to Ind AS. An explanation of how transition to Ind AS has affected the previously reported financial position,
financial performance and cash flows of the Company is provided in note no 50.
2.1 Presentation of financial statements
The Company presents its Balance Sheet in order of liquidity. An analysis regarding recovery or settlement within 12
months after the reporting date (current) and more than 12 months after the reporting date (non–current) is presented in
Note 48.
Financial assets and financial liabilities are generally reported gross in the balance sheet. They are only offset and
reported net when, in addition to having an unconditional legally enforceable right to offset the recognised amounts
without being contingent on a future event.
2.2 Estimation of uncertainties relating to the global health pandemic from COVID-19
The Company has considered all the possible effects that may result from the pandemic relating to COVID-19 on its
estimates and associated assumptions applied in preparing these financial statements, especially for determining the
impairment allowance for the company's financial assets (Loans). Estimates and assumptions are based on historical
experience and other emerging/ forward looking factors on account of the pandemic. The Company believes that the
factors considered are reasonable under the current circumstances. The Company has used early indicators of
moratorium and delayed payment metrics observed along with an estimation of potential stress on probability of default
and exposure at default due to Covid-19 situation in developing the estimates and assumptions to assess the impairment
loss allowance on Loans. Given the dynamic nature of the pandemic situation, these estimates are subject to uncertainty
and may be affected by the severity and duration of the pandemic. In the event the impacts are more severe or prolonged
than anticipated, this may have a corresponding impact on the carrying value of financial assets of the company. The
Company will continue to closely monitor material changes in markets and future economic conditions. Based on facts
and circumstances up to the date of adoption of these accounts by the Board of Directors, the Company does not
anticipate any material changes to the carrying value of assets and liabilities existing as on the Balance Sheet date.
3. Significant accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements.
(i) Recognition of interest income

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.
a. Interest income
a. The Company calculates interest income by using the effective interest rate (EIR) method to gross carrying
amount of financial asset other than credit impaired assets.
b. When a financial asset becomes credit-impaired and is, therefore, regarded as ‘Stage 3’, the company calculates
interest income by applying the effective interest rate to the net amortised cost of the financial asset. If the
financial assets cures and is no longer credit-impaired, the company reverts to calculating interest income on a
gross basis.
c. Interest income on financial assets classified as FVTPL is recognised at contractual interest rate of financial
instruments.
d. Penal/additional charges on default in payment of dues by customer is recognised on realisation basis.
The effective interest rate method

Interest income/ expense is recorded using the effective interest rate (EIR) method for all financial instruments
measured at amortised cost and debt instruments designated at FVTPL. The EIR is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter
period, to the net carrying amount of the financial instrument.
The EIR (and therefore, the amortised cost of the asset/ liability) is calculated by taking into account any discount
or premium on acquisition, commission, fees and costs incremental and directly attributable to the specific lending
arrangement.
The Company recognises interest income/ expense using a rate of return that represents the best estimate of a
constant rate of return over the expected life of the financial asset/ liability. The future cash flows are estimated
taking into account all the contractual terms of the asset/ liability. If expectations regarding the cash flows on the
financial asset/ liability are revised for reasons other than credit risk, the adjustment is booked as a positive or
negative adjustment to the carrying amount of the asset/ liability in the balance sheet. The adjustment is
subsequently amortised through Interest income/ expense in the statement of profit and loss.
b. Net gain on fair value changes

The realised gain from financial instruments at FVTPL represents the difference between the carrying amount of
a financial instrument at the beginning of the reporting period, or the transaction price if it was purchased in the
current reporting period, and its settlement price.
The unrealised gain represents the difference between the carrying amount of a financial instrument at the beginning
of the period, or the transaction price if it was purchased in the current reporting period, and its carrying amount at
the end of the reporting period.
(ii) Recognition of other income
Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) is measured at fair
value of the consideration received or receivable. Ind AS 115 Revenue from contracts with customers outlines a single
comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue
recognition guidance found within Ind ASs.
The company recognises revenue from contracts with customers based on a five-step model as set out in Ind 115:
 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
(iii) Recognition of expenditures
a. Finance costs
Borrowing costs on financial liabilities are recognised using the EIR.
b. Fees and commission expenses
Fees and commission expenses which are not directly linked to the sourcing of financial assets/ liabilities, such as
commission/incentive incurred on value added services and products distribution, recovery charges and fees payable
for management of portfolio etc., are recognised in the Statement of Profit and Loss on an accrual basis.
c. Taxes
Expensed are recognized net of the Goods and Services Tax/Service Tax, except where credit for the input tax is not
statutorily permitted.
(iv) Financial Instruments
A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
a. Date of recognition
Financial assets and liabilities, with the exception of loans, debt securities and borrowings are initially recognised
on the trade date, i.e., the date that the company becomes a party to the contractual provisions of the instrument.
Loans are recognised when funds are transferred to the customers’ account. The company recognises debt securities
and borrowings when funds are received by the company.
b. Initial measurement of financial instruments

The classification of financial instruments at initial recognition depends on their contractual terms and the business
model for managing the instruments. Financial instruments are initially measured at their fair value, except in the
case of financial assets and financial liabilities recorded at FVTPL, transaction costs are added to, or subtracted
from, this amount. When the fair value of financial instruments at initial recognition differs from the transaction
price, the company accounts for the Day 1 profit or loss, as described below.
c. Day one profit or loss

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.
d. Measurement categories of financial assets and liabilities
The company classifies all of its financial instruments based on the business model for managing the assets and the
assets contractual terms, measured at either:
 Amortised cost
 FVOCI
 FVTPL
(v) Financial assets and liabilities
a. Bank balances, Loans, Trade receivables and financial assets at amortised cost
The company measures Bank balances, Loans and other financial assets at amortised cost if both of the following
conditions are met:
 The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows.
 The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.
The details of these conditions are outlined 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.
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 financial assets going forward. The business model
of the Company for assets subsequently measured at amortised cost category is to hold and collect contractual cash
flows.
 The SPPI test

As a second step of its classification process the company assesses the contractual terms of financial 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).
The most significant elements of interest within a lending arrangement are typically the consideration for the time
value of money and credit risk. To make the SPPI assessment, the company applies judgement and considers relevant
factors such as the currency in which the financial asset is denominated, and the period for which the interest rate is
set.
b. 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 costs that are an
integral part of the EIR.
c. Financial assets and financial liabilities at fair value through profit or loss
Financial assets and financial liabilities in this category are those that are not held for trading and have been
either designated by management upon initial recognition or are mandatorily required to be measured at fair
value under Ind AS 109. Management only designates an instrument at FVTPL upon initial recognition when one
of the following criteria are met. Such designation is determined on an instrument-by-instrument basis:
 The designation eliminates, or significantly reduces, the inconsistent treatment that would otherwise arise from
measuring the assets or liabilities or recognising gains or losses on them on a different basis; Or
 The liabilities are part of a group of financial liabilities, which are managed, and their performance evaluated on
a fair value basis, in accordance with a documented risk management or investment strategy; Or
 The liabilities containing one or more embedded derivatives, unless they do not significantly modify the cash
flows that would otherwise be required by the contract, or it is clear with little or no analysis when a similar
instrument is first considered that separation of the embedded derivative(s) is prohibited
d. Financial assets at FVOCI

The Company classifies its financial assets as FVOCI, only if both of the following criteria are met:
 The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets; and
 Contractual terms of the asset give rise on specified dates to cash flows that are Solely Payments of Principal
and Interest (SPPI) on the principal amount outstanding
e. Financial guarantees and undrawn loan commitments

Financial guarantees are initially recognised in the financial statements (within Provisions) at fair value, being the
premium/deemed 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/deemed premium is recognised in the statement of profit and loss on a straight line basis over the
life of the guarantee.
Undrawn loan commitments are commitments under which, over the duration of the commitment, the Company is
required to provide a loan with pre-specified terms to the customer. Undrawn loan commitments are in the scope of
the ECL requirements.
The nominal contractual value of undrawn loan commitments, where the loan agreed to be provided is on market
terms, are not recorded in the balance sheet.
(vi) Reclassification of financial assets and liabilities
The company does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional
circumstances in which the Company acquires, disposes of, or terminates a business line. Financial liabilities are never
reclassified.
(vii) Derecognition of financial assets and liabilities
a. 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.
When assessing whether or not to derecognise a loan to a customer, amongst others, the company considers the
following factors:
 Change in the currency of loan
 Introduction of an equity feature
 Change in counterparty
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.
b. Derecognition of financial assets due to substantial modification of terms and conditions
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:
 The company has transferred its contractual rights to receive cash flows from the financial asset; Or
 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
The Company transfers its financial assets through the partial assignment route and accordingly derecognises the
transferred portion as it neither has any continuing involvement in the same nor does it retain any control. If the
Company retains the right to service the financial asset for a fee, it recognises either a servicing asset or a servicing
liability for that servicing contract. A service liability in respect of a service is recognised at fair value if the fee to
be received is not expected to compensate the Company adequately for performing the service. If the fees to be
received is expected to be more than adequate compensation for the servicing, a service asset is recognised for the
servicing right at an amount determined on the basis of an allocation of the carrying amount of the larger financial
asset.
On derecognition of a financial asset 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) is recognised in
profit or loss.
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:
 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
 The company cannot sell or pledge the original asset other than as security to the eventual recipients. 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:

 The company has transferred substantially all the risks and rewards of the asset; Or
 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.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration the company could be required to
pay.
If continuing involvement takes the form of a written or purchased option (or both) on the transferred asset, the
continuing involvement is measured at the value the company would be required to pay upon repurchase. In the case
of a written put option on an asset that is measured at fair value, the extent of the entity's continuing involvement is
limited to the lower of the fair value of the transferred asset and the option exercise price.
c. 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.
(viii) Impairment of financial assets
a. 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 loan commitments and 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 or LTECL), 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 (12mECL).
The 12mECL is the portion of LTECLs 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 LTECLs and 12mECLs 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 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.
Based on the above process, the company categorises its loans into Stage 1, Stage 2 and Stage 3, as described below:
The Company classifies its financial assets in three stages having the following characteristics:
 Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12-month
allowance for ECL is recognised. Stage 1 loans also include facilities where the credit risk has improved, and
the loan has been reclassified from Stage 2.
 Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised. Stage
2 loans also include facilities, where the credit risk has improved, and the loan has been reclassified from Stage
3.
 Stage 3: objective evidence of impairment and are therefore considered to be in default or otherwise credit
impaired on which a lifetime ECL is recognised.
For financial assets for which the company has no reasonable expectations of recovering either the entire outstanding
amount, or a proportion thereof, the gross carrying amount of the financial asset is reduced. This is considered a
(partial) derecognition of the financial asset.
b. The calculation of ECLs
The company calculates ECLs 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 an entity in accordance with the contract
and the cash flows that the entity 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.
 Exposure at Default (EAD)

The Exposure at Default is an estimate of the exposure at a future default date, taking into account expected
changes in the exposure after the reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise, expected drawdowns on committed facilities, and accrued interest from
missed payments.
 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 lender would expect to receive,
including from the realisation of any collateral. It is usually expressed as a percentage of the EAD.
When estimating the ECLs, the company considers three scenarios (a base case, an upside, a downside). Each of
these is associated with different PDs, EADs and LGDs. When relevant, the assessment of multiple scenarios also
incorporates how defaulted loans are expected to be recovered, including the probability that the loans will cure and
the value of collateral or the amount that might be received for selling the asset.
The maximum period for which the credit losses are determined is the contractual life of a financial instrument
unless the company has the legal right to call it earlier.
Impairment losses and releases are accounted for and disclosed separately from modification losses or gains that
are accounted for as an adjustment of the financial asset’s gross carrying value.
The mechanics of the ECL method are summarised below:
 Stage-1:
The 12mECL is calculated as the portion of LTECLs that represent the ECLs that result from default events on
a financial instrument that are possible within the 12 months after the reporting date. The company calculates
the 12mECL allowance based on the expectation of a default occurring in the 12 months following the reporting
date. These expected 12-month default probabilities are applied to a forecast EAD and multiplied by the expected
LGD. This calculation is made for each of the three scenarios, as explained above.
 Stage-2:
When a loan has shown a significant increase in credit risk since origination, the company records an allowance
for the LTECLs. The mechanics are similar to those explained above, including the use of multiple scenarios,
but PDs and LGDs are estimated over the lifetime of the instrument.
 Stage-3:
For loans considered credit-impaired, the company recognises the lifetime expected credit losses for these loans.
The method is similar to that for Stage 2 assets, with the PD set at 100%.
 Loan commitments:
When estimating LTECLs for undrawn loan commitments, the company estimates the expected portion of the
loan commitment that will be drawn down over its expected life. The ECL is then based on the present value of
the expected shortfalls in cash flows if the loan is drawn down, based on a probability-weighting of the three
scenarios. The expected cash shortfalls are discounted at an approximation to the expected EIR on the loan.
 Financial guarantee contracts:

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, and the ECL provision. For this purpose,
the company estimates ECLs based on the present value of the expected payments to reimburse the holder for a
credit loss that it incurs. The shortfalls are discounted by the risk-adjusted interest rate relevant to the exposure.
The calculation is made using a probability-weighting of the four scenarios. The ECLs related to financial
guarantee contracts are recognised within Provisions.
c. Contract assets
The company follows ‘simplified approach’ for recognition of impairment loss allowance on contract assets. The
application of simplified approach does not require the company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The
company uses a provision matrix to determine impairment loss allowance on portfolio of its assets. The provision
matrix is based on its historically observed default rates over the expected life of the assets and is adjusted for
forward-looking estimates. At every reporting date, the historical observed default rates are updated for changes in
the forward-looking estimates.
(ix) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE has been set up jointly by Ministry of MSME, Government of India and SIDBI to catalyse flow of institutional
credit to Micro & Small Enterprises (MSEs). Over the past 18 years, CGTMSE has been instrumental in providing
guarantee cover on credit extended by eligible Member Lending Institutions [MLIs] to MSEs.
The Company has also become the MLI in the same scheme and obtained sovereign guarantee cover of its portfolio.
Accordingly, the company has incorporated the benefit of this sovereign guarantee cover in calculation of impairment
of assets.
(x) Write-offs
Financial assets are written off either partially or in their entirety only when the company has stopped pursuing the
recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated
as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are
credited to impairment on financial instrument on statement of profit and loss.
(xi) Determination of fair value
The company measures financial instruments, such as, derivatives at fair value at 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:
 In the principal market for the asset or liability, or
 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.

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.

Those that include one or more unobservable input that is significant to the measurement as whole.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
(xii) Foreign Currency translation
a. Functional and presentational currency

The company financial statements are presented in Indian Rupees (₹) which is also the functional currency of the
company.
b. Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency at the spot rate of exchange ruling
at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the
spot rate of exchange at the reporting date. All differences arising on non–trading activities are taken to other
income/expense 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.
(xiii) Leases
The company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.
a. Company as a lessee
The company applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The company recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
 Right-of-use assets
The company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a
straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the company at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-
use assets are also subject to impairment.
 Lease liabilities
At the commencement date of the lease, the company recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the company and payments of
penalties for terminating the lease, if the lease term reflects the company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment
of an option to purchase the underlying asset.
 Short-term leases and leases of low-value assets

The company applies the short-term lease recognition exemption to its short-term leases i.e., those leases that
have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It
also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered
to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.
b. Company as a lessor
Leases in which the company does not transfer substantially all the risks and rewards incidental to ownership of
an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the
lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in which they are earned.
(xiv) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, highly liquid securities with an original maturity of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in
value. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
(xv) Property, plant and equipment
Property plant and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated
depreciation and accumulated impairment in value. 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.
Depreciation on property, plant and equipment is provided on the written down value method using the rates arrived
at based on useful life of the assets prescribed under Schedule II of the Act which is also as per the useful life of the
assets estimated by the management.
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.
(xvi) Intangible assets
The company’s other intangible assets mainly include the value of computer software and assets under development.
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 intangible assets acquired
in a business combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation and any accumulated impairment losses.
Intangible assets are amortised using the straight-line method over a period of three years, which is the Management’s
estimate of its useful life. The useful lives of intangible assets are reviewed at each financial year end and adjusted
prospectively, if appropriate
(xvii) Impairment of non–financial assets
The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value less costs of disposal and its
value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
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 the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are taken into account.
For assets, an assessment is made at each reporting date to determine whether there is an indication that previously
recognised impairment losses no longer exist or have decreased. If such indication exists, the company estimates the
asset’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a
revalued amount, in which case, the reversal is treated as a revaluation increase.
(xviii) Financial guarantees
Financial guarantees are initially recognised in the financial statements (within ‘other liabilities’) at fair value, being
the premium received. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.
Any increase in the liability relating to financial guarantees is recorded in the statement of profit and loss in credit loss
expense. The premium received is recognised in the statement of profit and loss in net fees and commission income
on a straight-line basis over the life of the guarantee.
(xix) Retirement and other employee benefits
a. Provident fund
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation,
other than the contribution payable to the provident fund. The company recognises contribution payable to the
provident fund scheme as an expense, when an 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. Gratuity liability
Gratuity liability is a defined benefit plan and the costs of providing benefits under the defined benefit plan is
determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability 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. Remeasurements
are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the earlier of:
 The date of the plan amendment or curtailment, and
 The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The company
recognises the following changes in the net defined benefit obligation as an expense in the consolidated statement
of profit and loss:
 Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
nonroutine settlements; and
 Net interest expense or income
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to
past service (‘past service cost’ or past service gain’) or the gain or loss on curtailment is recognised immediately
in the statement of profit and loss. The Company recognises gains and losses on the settlement of a defined benefit
plan when the settlement occurs
c. Compensated absences
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated at the reporting date.
The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at the year-end.
(xx) Provisions
Provisions are recognised when the company 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 company 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.
(xxi) Taxes
a. 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, in accordance with the Income Tax Act, 1961 and the Income Computation
and Disclosure Standards (ICDS) prescribed therein.. 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 jurisdiction 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.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
b. Deferred tax
Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
 Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss
 In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the
reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised, except:
 When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss
 In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that
it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.
c. 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:
 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
 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.
(xxii) Contingent liabilities, contingent assets and commitments
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. When there is a possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or disclosure is made
Contingent assets are neither recognised nor disclosed in the financial statements. However, it is disclosed only when
an inflow of economic benefits is highly probable.
Commitments include the amount of purchase order (net of advances) issued to the counterparties for
supplying/development of asset and amount of undisbursed portfolio loans.
Contingent assets, contingent liabilities and commitments are reviewed at each reporting date.
(xxiii) Share issue expenses

Direct expenses in connection with issue of shares are adjusted from securities premium account, to the extent
available.
(xxiv) Earnings per share
Basic earnings per share is computed by dividing profit after tax (excluding other comprehensive income) attributable
to the equity shareholders 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.
4. Critical accounting estimates and judgments
The preparation of the Company’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures,
as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Accounting estimates and judgments are used in various line items in the financial statements for e.g.:
 Business model assessment

 Fair value of financial instruments
 Effective Interest Rate (EIR)
 Impairment on financial assets
 Provisions and other contingent liabilities
 Provision for tax expenses
 Residual value and useful life of property, plant and equipment
5. Change in accounting Policy

During the year ended March 31, 2020, the Company has adjusted share issue expenses aggregating to ₹ 26.89 against
securities premium account, which was hitherto charged to statement of profit and loss. Had the Company followed the
accounting policy applicable in the year ended March 31, 2019, the profit would have been lower by ₹ 26.89.
Notes to financial statements for the period ended 31 March 2020 (₹ in lakhs unless otherwise stated)
6 Cash and cash equivalents

Particulars
2020 2019 2018
Cash on hand - 0.28 0.13
Balances with banks
- in current accounts 5,049.52 3,058.93 690.60
- in deposit accounts with maturity upto 3 months - 13,491.53 3,001.77
Total 5,049.52 16,550.74 3,692.50
Balances with banks earns interest at floating rates based on daily bank deposit 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. Fixed deposits are pledged against credit facilities of ₹ NIL (31
March 2019: ₹ 13,486.55 and 01 April 2018: ₹ NIL)
7 Bank balances other than cash and cash equivalents

Particulars
2020 2019 2018
Fixed deposits with bank*
Deposits - maturity less than 12 months 8,620.43 5,592.67 3,577.10
Deposits - maturity more than 12 months 2,676.35 1,710.92 2,039.95
Interest accrued but not due on deposits placed with banks - (0.00) -
Total 11,296.78 7,303.59 5,617.05
*Fixed deposit and other balances with banks earns interest at fixed rate or floating rates based on daily bank deposit rates.
Fixed deposits are pledged against credit facilities of ₹ 11,296.78 (31 March 2019: ₹ 5,467.64 and 01 April 2018: ₹
3,574.16)
8 Loans
Particulars
2020 2019 2018
Term loans 2,19,624.47 1,36,075.75 45,266.28
Less: Impairment loss allowance (6,935.96) (4,813.05) (2,415.88)
Total 2,12,688.51 1,31,262.70 42,850.40
(Refer note 48(C) for Credit risk)
(A) Out of Above

(i) Secured - - -
Less: Impairment loss allowance - - -
Total (i) - - -
(ii) Unsecured 2,19,624.47 1,36,075.75 45,266.28

Total (ii) 2,12,688.51 1,31,262.70 42,850.40
Total (A) = (i) + (ii) 2,12,688.51 1,31,262.70 42,850.40
(B) Out of Above

(i) Public Sector - - -
Less: Impairment loss allowance - - -
Total (i) - - -
(ii) Others 2,19,624.47 1,36,075.75 45,266.28

Total (ii) 2,12,688.51 1,31,262.70 42,850.40
Total (B) = (i) + (ii) 2,12,688.51 1,31,262.70 42,850.40

On March 11, 2020, the World Health Organization declared COVID 19 a pandemic, which has impacted almost all
countries around the world, including India. As a control measure, the Indian Government announced a lock down across
India to restrict the spread of the virus. Consequently, on 27th March, 2020, the RBI announced various regulatory
measures to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to
ensure continuity of viable businesses (Reference RBI Circular no RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-
20 dated March 27, 2020, RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 and RBI/2019-
20/244 DOR.No.BP.BC.71/21.04.048/2019-20 dated May 22, 2020). The RBI has given certain waivers to the borrowers
which include moratorium to pay principal and interest with relaxation on their classification as a non-performing asset.
The moratorium is essentially granted to help the borrowers to tide over a liquidity crisis caused by the corona disruption.
The company has also provided moratorium facility to its customer based on a board approved policy with effect from
27th March 2020 to all loans classified as standard as on 29th February 2020. Therefore, the original tenure of loans is
extended. Also, the moratorium period, wherever granted, is excluded by the company from the number of days past-due
for the purpose of asset classification under the IRAC norms.
9 Other financial assets

Particulars
2020 2019 2018
Interest receivable on assignment of loans 780.12 260.39 -
Security deposits 581.69 182.66 210.93
Receivable from co-lenders 1,311.20 - -
Others (financial assets) 226.28 33.65 19.10
Total 2,899.30 476.71 230.04
(Less) : Impairment allowance on other financial assets (30.56) (18.07) -
Total 2,868.74 458.63 230.04
10 Tax assets (net)

Particulars
2020 2019 2018
Advance income tax* 162.08 250.93 161.44
Total 162.08 250.93 161.44
*(net of provision for tax ₹ 1,902.50 (31 March 2019: ₹ 820.93 ; 01 April 2018: Nil))
11 Deferred tax asset (Net)

Particulars
2020 2019 2018
Deferred tax asset on account of:
Carry forward of unabsorbed losses - - 978.56
Provision for expenses allowed for tax purposes on payment
110.21 97.43 62.44
basis under Section 43B of Income tax Act, 1961
Provision for expected credit losses 1,750.18 1,332.08 (313.52)
EIR accounting of loan assets 221.01 103.48 14.39
Deferred tax on account of Ind AS 116 23.90 (8.19) (16.59)
Deferred tax on account of Guarantee fees 325.88 - -
Deferred tax on account of unwinding discount of Security
51.44 24.13 13.07
Deposit
Impact of difference between tax depreciation and
27.84 13.27 10.53
depreciation charged for the financial reporting
Interest on market linked debentures 111.26 - -
MAT credit entitlement 42.10 537.42 -
2,663.82 2,099.62 748.88
Deferred tax liability on account of:
Impact of accrued interest on non performing assets - - -
Deferred tax on account of securitisation and direct
562.39 249.88 (120.30)
assignment
EIR accounting of borrowings 242.78 177.93 (81.95)
805.17 427.81 (202.25)
Deferred tax assets (Net) 1,858.65 1,671.82 951.13
Deferred tax asset recognized 1,858.65 1,671.82 -
Notes to financial statements for the year ended 31 March 2020 (₹ in lakhs unless otherwise stated)
12 Property, plant and equipment

Property, plant and equipment
Right-of-use
Particulars Computers and Furniture and Office Leasehold
Total assets
Networks fixtures equipments improvements
Cost
As at 01 April 2018 61.77 42.63 13.85 12.13 130.39 866.15
Additions 191.00 6.71 19.94 - 217.65 930.70
Disposals 1.09 16.25 3.79 12.13 33.25 -
As at 31 March 2019 251.69 33.09 30.01 - 314.79 1,796.85
Additions 215.73 9.55 71.13 - 296.40 1,908.21
Disposals 3.42 1.29 1.95 - 6.66 -
As at 31 March 2020 464.00 41.35 99.18 - 604.53 3,705.07
Accumulated depreciation
As at 01 April 2018 - - - - - -
Charge for the year 75.27 10.90 8.35 9.56 104.09 124.18
Disposals 0.52 3.84 1.53 9.56 15.45 -
As at 31 March 2019 74.75 7.06 6.82 - 88.64 124.18
Charge for the year 179.05 8.00 24.37 - 211.42 367.24
Disposals 1.91 0.46 1.08 - 3.45 -
As at 31 March 2020 251.89 14.61 30.11 - 296.61 491.42
Net book value

As at 01 April 2018 61.77 42.63 13.85 12.13 130.39 866.15
As at 31 March 2019 176.93 26.03 23.19 - 226.15 1,672.67
As at 31 March 2020 212.11 26.74 69.07 - 307.92 3,213.65
13 Intangible assets
Computer
Particulars
softwares
Cost
As at 01 April 2018 26.03
Additions 55.93
Disposals -
As at 31 March 2019 81.96
Additions 110.55
Disposals -
As at 31 March 2020 192.51
Accumulated amortisation
As at 01 April 2018 -
Charge for the year 21.61
Disposals -
As at 31 March 2019 21.61
Charge for the year 51.32
Disposals -
As at 31 March 2020 72.93
Net book value

As at 01 April 2018 26.03
As at 31 March 2019 60.35
As at 31 March 2020 119.58
14 Other non-financial assets

Particulars
2020 2019 2018
Indirect tax credits available for utilisation 115.65 33.18 10.38
Prepaid expenses 222.26 96.57 64.36
Other advances 250.59 29.33 50.05
Total 588.50 159.09 124.79
15 Debt Securities
Particulars
2020 2019 2018
(A) At amortised cost
(i) Secured*
Privately placed redeemable non-convertible debentures 38,785.80 31,834.90 3,320.18
(ii) Unsecured
Borrowings by issue of commercial papers 498.63 4,219.60 -
Total 39,284.43 36,054.50 3,320.18
(B) At FVTPL
(i) Secured*
Privately placed redeemable non-convertible debentures 5,122.94 2,740.85 -
Total 5,122.94 2,740.85 -
(C) Out of above

In India 36,080.13 35,739.94 280.39
Outside India 8,327.23 3,055.40 3,039.79
Total 44,407.37 38,795.35 3,320.18
*The debenture are secured by:
i) A charges by way of hypothecation of all book debts and receivables, present and future of the Company (To the extent
of 1 to 1.10 times of outstanding amount of debentures).
ii) Corporate guarantee of the Holding Company for 31 March 2020 is ₹ 38,136.36, 31 Mar 2019 is ₹ 34,337.12 and
01 April 2018 is ₹ 3,281.25.
Terms of Repayment - Debentures as at 31 March 2020

Original Maturity / Repayment frequency Monthly/Quarterly repayment
Total
Rate of interest 12%-15% 15%-18%
Due within 1 year
No. of instalments 57 - 57
Amount 14,640.49 - 14,640.49
Due 1 to 2 years
No. of instalments 33 1 34
Amount 14,495.87 1,000.00 15,495.87
Due 2 to 3 years
Amount 7,147.24 4,000.00 11,147.24
Due 3 to 4 years
No. of instalments - 1 1
Amount - 2,000.00 2,000.00
Due 4 to 5 years
No. of instalments 1 - 1
Amount 0.26 - 0.26
Interest accrued and impact of EIR 624.87
Total 36,283.86 7,000.00 43,908.73
Terms of Repayment - Debentures as at 31 March 2019

Rate of interest 12%-15% Total
Due within 1 year
No. of instalments 55 55
Amount 17,467.42 17,467.42
Due 1 to 2 years
Amount 7,975.76 7,975.76
Due 2 to 3 years
Amount 6,893.94 6,893.94
Due 3 to 4 years
Amount 2,000.00 2,000.00
Total 34,337.12 34,620.75
Terms of Repayment - Debentures as at 01 April 2018

Due within 1 year
Amount 281.25 281.25
Due 1 to 2 years
No. of instalments - -
Amount - -
Due 2 to 3 years
No. of instalments - -
Amount - -
Due 3 to 4 years
Amount 3,000.00 3,000.00
Total 3,281.25 3,320.18
Terms of Repayment - Commercial papers as at 31 March 2020

Original Maturity / Repayment frequency Bullet repayment
Rate of interest 12.90% Total
Due within 1 year
Amount 500.00 500.00
Impact of undiscounted maturity charges and EIR (1.37)
Total 498.63
Terms of Repayment - Commercial papers as at 31 March 2019

Original Maturity / Repayment frequency Bullet repayment
Rate of interest 11.25 to 13% Total
Due within 1 year
Amount 4,300.00 4,300.00
Impact of undiscounted maturity charges and EIR (80.40)
Total 4,219.60
16 Borrowings (Other than debt securities)

Particulars
2020 2019 2018
(i) Secured*
Term loans
from banks 46,233.94 26,707.72 7,004.09
from other than banks 34,639.77 25,919.44 22,389.72
Loans repayable on demand

Overdraft from bank 948.38 - 465.06
Cash credit from banks 3,941.58 3,020.14 2,005.25
Cash credit from other than banks 1,511.54 1,511.06 1,504.79
Securitisation liabilities 22,660.56 8,021.88 -
1,09,935.77 65,180.24 33,368.92
(ii) Unsecured
Term loans
from other than banks 625.46 - 50.27
625.46 - 50.27
Total 1,10,561.24 65,180.24 33,419.19
(B) Out of above

In India 1,10,561.24 65,180.24 33,419.19
Outside India - - -
Total 1,10,561.24 65,180.24 33,419.19
*The term loans/ working capital demand loans/ cash credit/ overdraft are secured by:
i) A charges by way of hypothecation of all book debts and receivables, present and future of the Company (to the extent
of 1 to 1.33 times of outstanding loan amount).
ii) Corporate guarantee of the Holding Company as at 31 March 2020 is ₹ 82,223.03, 31 Mar 2019 is ₹ 52,957.08 and 01
April 2018 is ₹ 27,817.44
iii) Guarantee by third party (15% of initial value of term loans, capped at 35% due to amortization).
iv) First loss default guarantee (FLDG) in the form of fixed deposits as at 31 March 2020 is ₹ 4,422.32, 31 Mar 2019 is ₹
2,373.00 and 01 April 2018 is ₹ 1,820.06
v) First loss default guarantee (FLDG) in the form of security deposits as at 31 March 2020 is ₹ 250.00, 31 Mar 2019 is ₹
125.00 and 01 April 2018 is ₹ 150.00
vi) Overdraft and cash credit availed from banks secured by pledge fixed deposits as at 31 March 2020 is ₹ 3,587.97, 31
Mar 2019 is ₹ 2,244.63 and 01 April 2018 is ₹ 1,754.10
Terms of Repayment - Term Loans & working capital demand loans as at 31 March 2020
Total
Rate of interest 9%-12% 12%-15%
Due within 1 year
Amount 14,271.15 31,344.46 45,615.61
Due 1 to 2 years
Amount 3,681.39 19,207.66 22,889.05
Due 2 to 3 years
Amount 208.33 10,529.86 10,738.19
Due 3 to 4 years
No. of instalments - 33 33
Amount - 1,951.39 1,951.39
Due 4 to 5 years
No. of instalments - - -
Amount - - -
Above 5 years
No. of instalments - - -
Amount - - -
Total 18,160.87 63,033.37 81,499.17
17 Subordinated Debt
Particulars
2020 2019 2018
(i) Unsecured
Term loans
from banks (subdebt) 2,528.44 2,528.14 1,008.90
Total 2,528.44 2,528.14 1,008.90
Terms of Repayment - Subordinated Debt as at 31 March 2020

Due 4 to 5 years
Amount 1,000 1,000.00
Due Above 5 years
Amount 1,500 1,500.00
Total 2,500.00 2,528.44
Terms of Repayment - Subordinated Debt as at 31 March 2019

Due Above 5 years
Amount 2,500.00 2,500.00
Total 2,500.00 2,528.14
Terms of Repayment - Subordinated Debt as at 01 April 2018

Due Above 5 years
Amount 1,000.00 1,000.00
Total 1,000.00 1,008.90
18 Other financial liabilities

Particulars
2020 2019 2018
Expense and other payables 1,388.00 1,366.25 680.79
Payable towards Co-lending 179.29 - -
Payable towards direct assignment of loans 1,383.33 406.59 512.56
Payables to employees 111.70 213.69 140.91
Payables to holding company 66.02 327.93 257.04
Lease obligation 3,336.70 1,685.52 843.86
Guarantee Liability 900.66 - -
Service obligation on account of securitisation 9.17 1.52 1.60
Total 7,374.86 4,001.50 2,436.76
19 Provisions
Particulars
2020 2019 2018
Provision for employee benefits
Provision for gratuity benefits 159.27 82.50 44.72
Provision for leave benefits 219.20 252.10 157.36
Total 378.47 334.59 202.07
20 Other non-financial liabilities

Particulars
2020 2019 2018
Advances from customers 340.74 202.41 66.66
Statutory dues 321.00 240.34 171.63
Total 661.75 442.76 238.29
21 Equity share capital

Particulars
2020 2019 2018
Authorized
Equity shares of ₹10 each 4,454.75 3,934.50 2,975.00
Total 4,454.75 3,934.50 2,975.00
Issued, subscribed and fully paid up

Equity shares of ₹10 each
At the beginning of the year 3,898.59 2,939.13 2,549.52
Add: Issued during the year 520.20 959.47 389.61
Total 4,418.79 3,898.59 2,939.13
Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ₹ 10/- per share. Each shareholder is eligible for
one vote per share held. The dividend proposed, if any, by the Board of Directors is subject to the approval of shareholders
in the ensuing Annual General Meeting. 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.
Shares held by holding / ultimate holding company and / or their subsidiaries / associates
Out of equity shares issued by the Company, shares held by its holding company i.e. Lendingkart Technologies Private
Limited, are as below:
Particulars
2020 2019 2018
No. of shares held 4,41,87,931 3,89,85,920 2,93,91,259
% of share holding 100% 100% 100%
Details of each Shareholder holding more than 5% shares and the number of share held
Holding company i.e. Lendingkart Technologies Private Limited has 100% shares of the Company
Particulars
2020 2019 2018
No. of shares held 4,41,87,931 3,89,85,920 2,93,91,259
% of share holding 100% 100% 100%
As per the records of the Company, including its register of shareholders / members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.
22 Other equity
Particulars
2020 2019 2018
Securities Premium
Balance at the beginning of the year 46,799.81 15,259.28 9,648.89
Add: Premium on issue of Equity Shares 20,479.80 31,540.53 5,610.39
(Less): Expenses on issue of shares (26.89) - -
Balance at the end of the year 67,252.72 46,799.81 15,259.28
Surplus in the statement of profit and loss

Balance at the beginning of the year (3,041.11) (5,125.66) (5,125.66)
Add: Profit for the year 2,965.30 2,775.46 -
GAAP Adjustments (P/L) - - -
Item of other comprehensive income - - -
- Remeasurement gains / (losses) on defined benefit plan (net
3.81 (3.48) -
of tax)
Less : Transferred to Statutory Reserve u/s section 45-IC of
(593.06) (687.43) -
Reserve Bank of India Act, 1934
Balance at the end of the year (665.06) (3,041.11) (5,125.66)
Other Comprehensive Income

Balance at the beginning of the year 3.48 - -
Items of other comprehensive income
- Remeasurement gains / (losses) on defined benefit plan (net
of tax) (3.81) 3.48 -
Balance at the end of the year (0.33) 3.48 -
Statutory Reserve u/s section 45-IC of Reserve Bank of

India Act, 1934
Balance at the beginning of the year 688.08 0.65 0.65
Add: Transferred during the year 593.06 687.43 -
Balance at the end of the year 1,281.14 688.08 0.65
Total other equity 67,868.47 44,450.27 10,134.27

Notes to financial statements for the year ended 31 March 2020
(₹ in lakhs unless otherwise stated)
23 Interest income
Particulars
31 March 2020 31 March 2019
On financial assets measured at Amortised Cost
Interest on term loans 42,499.50 20,118.78
Guarantee revenue from colending 122.34 -
Interest on fixed deposits with banks 1,380.87 829.99
Interest on Inter-corporate loan - 123.46
Other charges 242.06 175.20
Other interest income 23.08 6.87
Total 44,267.85 21,254.32
24 Gain on assignment of loans

Gain on assignment of loans for the year ended 31 March 2020 is ₹ 1,941.16 (31 March 2019: ₹ 632.95)
and loss on modification of loans is ₹ 219.30 (31 March 2019: ₹ 107.58) which is presented as net in Gain
on assignment of loans in the Statement of Profit and Loss.
25 Other income
Particulars
31 March 2020 31 March 2019
Commission Income from Insurance 331.21 -
Unwinding discount of security deposit 44.92 5.04
Other Income 64.43 20.03
Total 440.56 25.07
26 Finance costs
Particulars
31 March 2020 31 March 2019
On financial liabilities measured at amortised cost
On debt securities 5,302.32 2,151.28
On borrowings (other than debt securities) 11,466.65 5,254.82
On commercial papers 180.37 281.26
On lease obligation 307.03 124.48
Others 78.05 61.64
On financial liabilities measured at fair value

On debt securities (FVTPL) 382.09 240.85
Total 17,716.50 8,114.33
27 Fees and commission expenses

Particulars
31 March 2020 31 March 2019
Comission and Brokerage 729.80 329.98
Total 729.80 329.98
28 Impairment on financial instruments at amortised cost

Particulars
31 March 2020 31 March 2019
Loans 2,148.15 2,397.17
Other financial assets 24.54 18.07
Write offs 9,775.54 2,653.12
Total 11,948.23 5,068.36
Notes to financial statements for the year ended 31 March 2020
29 Employee benefit expenses

Particulars
31 March 2020 31 March 2019
Salaries and wages 4,459.99 2,584.56
Contribution to provident and other funds 152.65 85.94
Reimbursement of ESOP expenses 58.82 118.40
Leave benefit expense 17.20 127.98
Gratuity 72.06 42.69
Staff welfare expenses 183.05 123.66
Total 4,943.77 3,083.23
30 Depreciation and amortisation expenses

Particulars
31 March 2020 31 March 2019
Depreciation and amortisation expenses 629.99 249.89
Total 629.99 249.89
31 Other expenses
Particulars
31 March 2020 31 March 2019
Power and fuel 78.47 50.96
Rent 47.03 56.25
Repairs and maintenance 46.86 22.86
Insurance 17.58 38.79
Telephone and communication expense 171.25 66.10
Office administrative expenses 515.84 308.98
Marketing and sales promotion expense 57.00 41.18
Auditor's fees and expenses (Refer note 31.1 below) 30.90 24.76
Share issue expenses - 41.62
Legal and professional charges 1,211.01 557.46
Service charges of outsourced employees 1,028.36 621.14
Guarantee fees 1,266.56 -
License fees 498.33 325.69
Business support services 218.20 339.92
Printing and stationery 10.51 14.05
Travelling expenses 92.74 52.71
Bank charges 118.08 65.09
Courier expenses 58.10 33.00
Software license fees 710.60 304.95
Rates & taxes 19.54 14.23
Security expenses 12.73 7.37
Loss on sale of property, plant and equipment 3.11 15.36
Director sitting fees 2.64 1.83
Housekeeping expenses 16.17 12.26
Miscellaneous expenses 36.11 22.72
Total 6,267.71 3,039.30
31.1 Auditor's Remuneration

Audit fee 22.89 18.74
Tax audit fee 3.27 3.27
In other capacity :
Certification services 3.76 1.85
Reimbursement of expenses 0.98 0.90
Total 30.90 24.76
Notes to financial statements for the year ended 31st March 2020
32 Tax expense
Current tax expense
Current tax for the year 1,407.18 820.93
Prior period Tax adjustments 3.28 -
Total current tax expense 1,410.46 820.93
Deferred taxes
Change in deferred tax assets 562.63 2,101.05
Change in deferred tax liabilities (377.36) (427.81)
Net deferred tax expense / (income) (185.27) (1,673.25)
Total income tax expense 1,225.19 (852.31)
32.1 Tax reconciliation

Profit before income tax expense 4,194.28 1,919.67
Effective tax rate 29.12% 29.12%
Tax at statutory income tax rate @ 29.12% 1,221.37 559.01
Tax effect of amounts which are not deductible / not taxable in
calculating taxable income
Expenses disallowed 0.53 30.44
Utilisation of previously b/f business losses and unabsorbed
- (1,140.61)
depreciation
Deferred tax assets not recognised for previous years on virtual
- (301.15)
certainity
Prior period adjustments 3.28 -
Income tax expense 1,225.18 (852.31)
32.2 Deferred tax movement related to the following:

Recognised in
Recognised in
As at 31 March Other As at 31 March
Deferred tax assets (net) Statement of Profit
2020 comprehensive 2019
or loss
income
Provision for expenses allowed for tax purposes on payment basis under
110.21 (11.22) (1.56) 97.43
Section 43B of Income tax Act, 1961
Expected credit loss 1,750.18 (418.10) - 1,332.08
Unamortised processing fee 221.01 (117.53) - 103.48
Deferred tax on account of Ind AS 116 23.90 (32.09) - (8.19)
Deferred tax on account of guarantee fees 325.88 (325.88) - -
Deferred tax on account of unwinding discount of Security Deposit 51.44 (27.31) - 24.13
Difference between tax depreciation and depreciation charged for the financial
reporting 27.84 (14.57) - 13.27
Interest on market linked debentures 111.26 (111.26) - -

MAT credit entitlement 42.10 495.32 - 537.42
Total deferred tax asset 2,663.82 (562.63) (1.56) 2,099.62

Unamortised borrowing cost 242.78 64.85 - 177.93
On account of securitisation and direct assignment 562.39 312.51 - 249.88
Total deferred tax liability 805.17 377.36 - 427.81
Deferred tax charge/(credit) for the year 1,858.65 (185.27) (1.56) 1,671.82
Recognised in
Recognised in
As at 31 March Other
Deferred tax assets (net) Statement of Profit As at 01 April 2018
2019 comprehensive
or loss
income
Carry forward of unabsorbed losses - - - 978.56
Provision for expenses allowed for tax purposes on payment basis under
97.43 (98.86) 1.43 62.44
Section 43B of Income tax Act, 1961
Expected credit loss 1,332.08 (1,332.08) - (313.52)
Unamortised processing fee 103.48 (103.48) - 14.39
Deferred tax on account of Ind AS 116 (8.19) 8.19 - (16.59)
Deferred tax on account of unwinding discount of Security Deposit 24.13 (24.13) - 13.07
Difference between tax depreciation and depreciation charged for the financial
13.27 (13.27) - 10.53
reporting
MAT credit entitlement 537.42 (537.42) - -
Total deferred tax asset 2,099.62 (2,101.05) 1.43 748.88

Unamortised borrowing cost 177.93 177.93 - (81.95)
On account of securitisation and direct assignment 249.88 249.88 - (120.30)
Total deferred tax liability 427.81 427.81 - (202.25)
Deferred tax charge/(credit) for the year 1,671.82 (1,673.25) 1.43 -
33 Earning Per Share

Particulars
31 March 2020 31 March 2019
(A) Net profit after tax for the year 2,969.09 2,771.99
(B) Weighted average number of equity shares for basic earnings per share 4,18,71,188 3,43,59,453
(C) Weighted average number of equity shares for diluted earnings per share 4,18,71,188 3,43,59,453
Basic earning per share in ₹(A/B) 7.09 8.07
Diluted earning per share in ₹ (A/C) 7.09 8.07
[Nominal value of shares ₹ 10 each (Previous Year : ₹ 10)]
34. Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (CODM). The Company operates in a single reportable segment i.e. financing, since the nature of the
loans are exposed to similar risk and return profiles. No revenue from transactions with a single external customer or
counterparty amounted to 10% or more of the Company’s total revenue in year ended 31 March 2020 and 31 March
2019. The Company operates in a single geographical segment i.e. domestic.
35. Related party transactions
Related party disclosures as required under Indian Accounting standard 24, " Related party disclosure" are given below.
(a) List of Related parties
Nature of Relationship Name of Related Parties

Holding company Lendingkart Technologies Private Limited
Entity having significant influence in holding company Fullerton Finanical Private Limited
Independent director Mr. Gaurav Mittal
Independent director Mr. T. V. Rao
Independent director Ms. Divya Himanshu Jain
Independent director Mr. G. S. Sundararajan
Relative of chairman and managing director Anand Raichand Lunia
(b) Transactions during the year with related parties
Sr.
Nature of transactions 31 March 2020 31 March 2019
No.
1 Lendingkart Technologies Private Limited
Unsecured inter-corporate loan taken 1,000.00 5,000.00
Unsecured inter-corporate loan repaid 1,000.00 -
Interest paid on inter-corporate loans 3.54 15.27
Conversion of unsecured inter corporate loan into equity
- 5,000.00
share capital (refer note 1 below)
Issue of equity share capital (including share premium on
21,000.00 27,500.00
issue of equity shares) (refer note 2 below)
Unsecured inter-corporate loans given - 2,300.00
Interest income on inter-corporate loans - 123.46
License fee paid for use of software (Excludes 50%
reversal of goods and services tax input credit) (refer note 457.18 292.55
3 below)
Business support charges paid (Excludes 50% reversal of
200.18 294.52
goods and services tax input credit)
Reimbursement of ESOP expenses (Excludes 50% reversal
53.96 118.40
of goods and services tax input credit)
Transfer of advance given to Omnifin against
customization and implementation of the Omnifin - 6.50
Software
Reimbursement of expenses incurred on behalf of the
- 0.13
Holding Company
2 Mr. Gaurav Mittal

Director sitting fee (Excludes 50% reversal of goods and
0.90 0.88
services tax input credit)
3 Mr. T V Rao
1.50 -
Sr.
Nature of transactions 31 March 2020 31 March 2019
No.
4 Ms. Divya Himanshu Jain
- 0.81
(c) Balance receivable/(payable) to Related parties

31 March 31 March 01 April
Sr. No. Nature of transactions
2020 2019 2018
1 Lendingkart Technologies Private Limited (66.02) (327.93) (257.04)
2 Mr. Gaurav Mittal - (0.13) -
3 Ms. Divya Himanshu Jain - (0.13) (0.13)
(d) Guarantees given by holding company*

Sr. No. Nature of transactions
2020 2019 2018
Loans borrowed from financial institutions and
1 Banks guaranteed by the Holding Company 82,223.03 52,957.08 27,817.44
(including CC facility)
Non-Convertible debentures issued to financial
2 institutions, banks and other company guaranteed by 38,136.36 34,337.12 3,281.25
the Holding Company
* In respect of Guarantee fees- no payment is required to be made to Holding Company, as allowed under
ITFG issue 2 bulletin 13, no guarantee commission is recognised in books of the company
* Total sanction amount of Loans borrowed from financial institutions and banks against which guarantee is given
by holding company is ₹ 1,09,450.00 and sanction amount of Non-Convertible debentures issued to financial
institutions, banks and other company is ₹ 47,750.00
Note 1: During the financial year ended 31 March 2019, Inter-corporate loan from the Holding Company was converted
into 14,76,101 number of equity shares of ₹ 10 each fully paid-up at a premium of ₹ 328.73 each, aggregating to ₹
5,000.00.
Note 2: During the year ended 31 March 2020, the company issued 52,02,011 equity shares of ₹ 10 each fully paid-up
at a premium of ₹ 393.69 per share to Holding Company. For detailed terms of the equity shares, please refer note 21
to the Financial Statements.
During the year ended 31 March 2019, the company issued 81,18,560 equity shares of ₹ 10 each fully paid-up at a
premium of ₹ 328.73 per share to Holding Company. For detailed terms of the equity shares, please refer note 21 to
the Financial Statements.
Note 3: The Company has entered into License Agreement with Holding Company dated 19 June 2015 for a term of 5
years for use of the licensed software to digitally lend money to its customers.
The services provided by the Holding Company to the Company are of a specialised nature and hence difficult to
benchmark with other external sources. The Company has engaged the services of an expert to assess the arm’s length
price for this inter-company transaction. Based on the assessment of such expert license fees are revised from 01 April
2018 and are charged by the Holding Company to the Company and are considered at arm’s length. Until the year
ended 31 March 2018, the Company paid license fees to the Holding Company as a percentage of the interest income
earned by the Company.
36. Employee stock option plans

The Holding Company has Employee Stock Option Plans (“ESOP”) scheme in force. As per the ESOP scheme,
Holding Company has granted ESOP options to acquire its equity shares that would vest in a graded manner to
Company’s employees. Based on the group policy/ arrangement, Holding Company has cross charged the fair value of
such ESOP. The Company has recognised the same under the employee cost amounting to ₹ 58.82 for the year ended
31 March 2020 (31 March 2019: ₹ 118.40).
37. Leases
Where the company is lessee:
The Company's significant leasing arrangements are in respect of operating leases for premises which are renewable
on mutual consent at agreed terms. These leases have an average life of between one and nine years. Lease rentals have
an escalation ranging between 5% to 15%. Some of the leases for which the lease term is less than twelve months has
been accounted as short term leases.
i. Set out below are the carrying amount of right-of-use assets recognized and movement during the year:
Particulars Amount
Land & Building as at 01 April 2018 (restated) 866.15
Additions 930.70
Depreciation expense 124.18
Balance as at 31 March 2019 1,672.67
Additions 1,908.21
Closure -
Depreciation expense 367.24
Balance as at 31 March 2020 3,213.65
ii. Set out are the carrying amount of lease liabilities and movement during the year:
Opening Balance 1,685.52 843.86
Additions 1,803.59 887.74
Accretion of interest 307.03 124.48
Closure - -
Payments (459.43) (170.56)
Closing Balance 3,336.70 1,685.52
iii. The expense relating to payments not included in the measurement of the lease liability is as follows:
Short-term leases 47.03 56.25
iv. The undiscounted maturity analysis of lease liabilities at 31 March 2020 is as follows:
Lease Liability 31 March 2020 31 March 2019 01 April 2018
Not later than one year 681.08 316.05 147.90
Later than one year and not later than five years 3,309.99 1,643.79 811.35
Later than five years 1,407.48 816.42 515.28
Total undiscounted lease liabilities 5,398.55 2,776.27 1,474.54
v. The effective interest rate of lease liabilities for the year ended 31 March 2020 is 13.24% (31 March 2019: 12.64%
and 01 April 2018: 13.55%).
vi. The following are the amount recognized in statement of profit or loss.
Depreciation expense right of use of assets 367.24 124.18
Interest expense on lease liabilities 307.03 124.48
Expense relating to short term leases (included in other
47.03 56.25
expenses)
Total Amount recognized in statement of profit and
721.30 304.91
loss account
38. Expenditure in foreign currency (on accrual basis)

Professional Fees 80.77 3.57
Software Expenses 17.15 10.75
Total 97.92 14.32
39. Contingent liability and Commitments

a) Contingent Liability
Description of the contingent liability 31 March 2020 31 March 2019 01 April 2018
Credit enhancements provided by the company
towards securitisation (including corporate guarantee,
7,282.41 2,443.06 613.26
cash collateral and loan assets retained as Minimum
retention Requirement (MRR)
b) Capital and other commitments

Description of the capital and other commitments 31 March 2020 31 March 2019 01 April 2018
Loan sanctioned not yet disbursed* - 3,675.27 2,378.03
Corporate guarantee in case of co-lending transactions 6,283.15 - -
A S Software Services Private Limited (Omnifin
Software) (Excludes 50% reversal of goods and 98.55 - -
service tax input credit)
*The company has sanctioned loans amounting to ₹ 90.50 but not disbursed as on 31st March 2020, due to expiry
of agreements during lockdown declared by Government of India.
40. Retirement benefit plans
A. Defined benefit obligation
Contribution to Gratuity fund:
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, an employee who has
completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s
length of service, managerial grade and salary at retirement age.
In accordance with Indian Accounting Standard 19, actuarial valuation was done in respect of the aforesaid defined
benefit plan of gratuity based on the following assumptions:
i. Key actuarial assumptions:

Discount rate (per annum) 6.60% 7.50%
Rate of salary increase 12% 12%
18% p.a. at younger ages reducing
Rate of employee turnover
to 6% p.a. at older ages
ii. Movement in defined benefit obligation:

Defined benefit obligation at the beginning of the year 82.50 44.72
Interest on defined benefit obligation 6.17 3.37
Current service cost 65.89 39.32
Benefits paid (0.66) -
(Benefit Paid From the Fund) - -
Remeasurements due to :
Actuarial loss/(gain) arising from change in demographic assumptions (0.03) -
Actuarial loss/(gain) arising from change in financial assumptions 11.71 0.35
Actuarial loss/(gain) arising on account of experience changes (6.31) (5.26)
Present Value of obligation at the end of the year 159.27 82.50
iii. Assets and liabilities recognised in the balance sheet:

Present value of the defined benefit obligation at the end of the year 159.27 82.50
Fair Value of Plan Assets at the end of the year - -
Funded Status (Surplus/ (Deficit)) 159.27 82.50
Net liability recognised in the balance sheet 159.27 82.50
iv. Expenses recognised in the Statement of Profit and Loss:

Current Service Cost 65.89 39.32
Interest cost 6.17 3.37
Net gratuity cost recognised in the current year 72.06 42.69
v. Expenses recognised in the statement of Other comprehensive income (OCI):

Actuarial gain/ loss on post-employment benefit obligation 5.37 (4.91)
Total remeasurement cost / (credit) for the year recognised in OCI 5.37 (4.91)
vi. Reconciliation of net asset/(liability) recognised:

Net defined benefit liability/(asset) as at the beginning of the year 82.50 44.72
Expense charged to Statement of Profit and Loss 72.06 42.69
(Benefit paid directly by the employer) (0.66) -
Amount recognised in other comprehensive income 5.37 (4.91)
Net Liability/(Asset) Recognized in the Balance Sheet 159.27 82.50
vii. Sensitivity analysis:

Impact of increase in 0.5% on rate of discounting 152.59 79.11
Impact of decrease in 0.5% on rate of discounting 166.44 86.11
Impact of increase in 0.5% on rate of salary increase 163.61 84.88
Impact of decrease in 0.5% on rate of salary increase 154.92 80.24
Impact of increase in 10% on rate of employee turnover 153.76 79.46
Impact of decrease in 10% on rate of employee turnover 164.80 85.48
viii. Maturity analysis of projected benefit obligation:

Year 31 March 2020 31 March 2019
Expected benefits for year 1 3.75 0.53
Expected benefits for years 6 to 10 81.80 48.09
ix. The Experience adjustment on plan assets:

31 March 31 March 31 March 31 March 31 March
Particulars
2020 2019 2018 2017 2016
Defined benefit obligation 159.27 82.50 44.72 21.38 3.77
Plan assets - - - - -
Surplus/ (deficit) (159.27) (82.50) (44.72) (21.38) (3.77)
Experience adjustment of plan assets - - - - -
Experience adjustment of plan liabilities (6.31) (5.26) (10.45) 8.52 0.58
B. Compensated absences:
Maturity profile
Present value of unfunded obligations 219.20 223.36
Expense recognised in the Statement of Profit and Loss 17.20 127.98
Discount rate (p.a.) 6.60% 7.50%
Salary escalation rate (p.a) 12.00% 12.00%
C. Provident Fund:
The Company contributes in Provident Fund towards employees which is the defined contribution plan for qualifying
employees. Under this Scheme, the Company is required to contribute specified percentage of the payroll cost to fund
the benefits. The Company recognised ₹ 145.88 (31 March 2019: ₹ 79.72) for provident fund contributions in the
Statement of profit and loss.
41. Based on the information available with the Company, there are no micro, small and medium enterprises to whom the
Company has paid interest or any interest payable on outstanding (under the provisions of Section 16 of Micro, Small
and Medium Enterprises Development Act, 2006) during the year ended 31 March 2020.
42. The Company does not have any outstanding loans against gold jewellery as at 31 March 2020 (31 March 2019: NIL).
43. Capital:
The Company actively manages its capital base to cover risks inherent to its business and meet the capital adequacy
requirement of RBI. The adequacy of the Company’s capital is monitored using, among other measures, the regulations
issued by RBI.
i. Capital management
Objective:
The Company’s objective is to maintain appropriate levels of capital to support its business strategy taking into account
the regulatory, economic and commercial environment. The Company aims to maintain a strong capital base to support
the risks inherent to its business and growth strategies. The Company endeavours to maintain a higher capital base than
the mandated regulatory capital at all times.
Planning:
The Company’s assessment of capital requirement is aligned to its planned growth which forms part of an annual
operating plan which is approved by the Board and also a long-range strategy. These growth plans are aligned to
assessment of risks– which include credit, liquidity and interest rate.
The management monitors its capital to risk-weighted assets ratio (CRAR) on a monthly basis and the same is also
monitored in Assets Liability Management Committee (ALCO).
The Company endeavours to maintain its CRAR higher than the mandated regulatory norm. Accordingly, increase in
capital is planned well in advance to ensure adequate funding for its growth.
ii. Regulatory capital
Particulars 31 March 2020 31 March 2019 01 April 2018

Tier I capital 68,381.91 45,918.09 12,832.26
Tier II capital 4,823.82 5,636.08 2,570.70
73,205.73 51,554.17 15,402.96
Risk weighted assets (RWA) 2,02,276.70 1,32,319.12 47,738.36
Tier I CRAR 33.81% 34.70% 26.88%

Tier II CRAR 2.38% 4.26% 5.38%
CRAR 36.19% 38.96% 32.26%
44. Transfers of assets:
i. Transferred of financial assets that are not derecognised in their entirety
(a) Securitisation
The company has Securitised certain loans, however the company has not transferred substantially all risks and
rewards, hence these assets have not been de-recognised in its entirety.

Carrying amount of transferred assets measured at amortised
33,915.58 8,603.73
cost (including loans placed as collateral)
Carrying amount of associated liabilities (Debt securities-
22,660.56 8,021.88
measured at amortised cost)
Fair value of assets 33,915.58 8,603.73
Fair value of associated liabilities 22,660.56 8,021.88
Net position at Fair Value 11,255.02 581.85
(b) Assignment deal

The Company has sold some loans and advances measured at amortised cost as per assignment deals, as a source
of finance. As per the terms of these deals, since substantial risk and rewards related to these assets were transferred
to the buyer, the assets have been derecognised from the Company’s Balance Sheet.
As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the
extent of 80-90% 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 measured at
amortised cost and the gain on derecognition, per type of asset.
Loans and advances measured at amortised cost 31 March 2020 31 March 2019
Carrying amount of derecognised financial assets 4,508.28 2,166.50
Gain from derecognition 1,721.87 525.37
ii. Transferred of financial assets that are derecognised in their entirety

The Company has not transferred any assets that are derecognised in their entirety where the Company continues to
have continuing involvement.
45. Events after reporting date:

There have been no events after the reporting date that require adjustment/disclosure in these financial statements.
46. Fair values:

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.
Valuation framework
The Company has an internal fair value assessment team which assesses the fair values for assets qualifying for fair
valuation.
The Company’s valuation framework includes:

 Benchmarking prices against observable market prices or other independent sources;
 Development and validation of fair valuation models using model logic, inputs, outputs and adjustments.
These valuation models are subject to a process of due diligence and validation before they become operational and are
continuously calibrated. These models are subject to approvals by various functions including risk, treasury and finance
functions. Finance function is responsible for establishing procedures, governing valuation and ensuring fair values are
in compliance with accounting standards. Company has an internal fair value assessment team which assesses the fair
values for assets qualifying for fair valuation.
Valuation methodologies adopted
 Fair values of financial assets and financial liabilities are measured at amortised cost except for market linked
debentures which are measured at fair value through profit and loss.
 Fair value of market linked debentures is measured at fair value through profit and loss. Fair value of Market
linked debentures is derived from independent valuer. The valuation is done based on discounted cashflow
method. The option portion is projected using Monte Carlo simulations and Geometric Brownian Motion is
used to project the Index levels into the future. The Index levels are projected based on certain assumptions and
the value of debenture is then arrived at by discounting the respective cashflows.
 The Company has determined that the carrying values of cash and cash equivalents, bank balances, expenses
payables, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and
hence their carrying value are deemed to be fair value.
47. Fair value hierarchy:
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1: valuation based on quoted market price: financial instruments with quoted prices for identical instruments in
active markets that the Company can access at the measurement date.
Level 2: valuation based on using observable inputs: financial instruments with quoted prices for similar instruments in
active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued
using models where all significant inputs are observable.
Level 3: valuation technique with significant unobservable inputs: – financial instruments valued using valuation
techniques where one or more significant inputs are unobservable. This is the case for contingent consideration and
indemnification assets.
Financial instruments by category

31 March 2020 31 March 2019 01 April 2018
Financial instruments by category Amortised Fair Amortised Fair Amortised Fair
Cost value Cost value Cost value
Financial assets:
Cash and cash equivalent 5,049.52 - 16,550.74 - 3,692.50 -
Other bank balances 11,296.78 - 7,303.59 - 5,617.05 -
Loans 2,12,688.51 - 1,31,262.70 - 42,850.40 -
Other financial assets 2,868.74 - 458.63 - 230.04 -
Total financial assets 2,31,903.54 - 1,55,575.67 - 52,389.98 -
Financial liabilities:
Debt Securities 39,284.43 5,122.94 36,054.50 2,740.85 3,320.18 -
Borrowings (other than debt securities) 1,10,561.24 - 65,180.24 - 33,419.19 -
Subordinated Debt 2,528.44 - 2,528.14 - 1,008.90 -
Other financial liabilities 7,374.86 - 4,001.50 - 2,436.76 -
Total financial liabilities 1,59,748.96 5,122.94 1,07,764.37 2,740.85 40,185.04 -
Valuation techniques
The carrying value of cash and cash equivalents, other bank balances, other financial asset, trade payables, other
payables and other financial liabilities are considered to be approximately equal to the fair value due to their short-term
maturities.
The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions
were used to estimate the fair values:
Loans - The fair value of floating rate loans are deemed to be equivalent to the carrying value. The fair value of certain
fixed rate loans is determined by discounting expected future contractual cash flows using current market interest rates
charged for similar new loans.
Borrowings - The fair value of certain fixed rate borrowings is determined by discounting expected future contractual
cash flows using current market interest rates charged for similar new loans. The fair value of floating rate borrowings
is deemed to be equivalent to the carrying value.
Fair value of Market linked debentures is derived from independent valuer. The valuation is done based on discounted
cashflow method. The option portion is projected using Monte Carlo simulations and Geometric Brownian Motion is
used to project the Index levels into the future. The Index levels are projected based on certain assumptions and the
value of debenture is then arrived at by discounting the respective cashflows.
Fair value of financial instruments measured at amortised cost:
Level of 31 March 31 March 01 April

Particulars
hierarchy 2020 2019 2018
Financial assets:
Cash and cash equivalent Level 1 5,049.52 16,550.74 3,692.50
Other bank balances Level 1 11,296.78 7,303.59 5,617.05
Loans Level 2 2,12,688.51 1,31,262.70 42,850.40
Other financial assets Level 2 2,868.74 458.63 230.04
Total financial assets 2,31,903.54 1,55,575.67 52,389.98
Financial liabilities:
Debt Securities Level 2 39,284.43 36,054.50 3,320.18
Borrowings (other than debt securities) Level 2 1,10,561.24 65,180.24 33,419.19
Subordinated Debt Level 2 2,528.44 2,528.14 1,008.90
Other financial liabilities Level 2 7,374.86 4,001.50 2,436.76
Total financial liabilities 1,59,748.96 1,07,764.37 40,185.04
Fair value of financial instruments designated at FVTPL:
Level of 31 March 31 March 01 April

Particulars
hierarchy 2020 2019 2018
Financial assets:
Debt Securities Level 2 5,122.94 2,740.85 -
48. Financial risk management:
The Company is exposed to certain financial risks namely credit risk, liquidity risk and market risk i.e. interest risk and
foreign currency risk. The Company’s primary focus is to achieve better predictability of financial markets and minimize
potential adverse effects on its financial performance by effectively managing the risks on its financial assets and
liabilities.
The Principal objective in Company 's risk management processes is to measure and monitor the various risks associated
with the Company and to follow policies and procedures to address such risks. The Company's risk management
framework is driven by its Board and its subcommittees including the Audit Committee, the Asset Liability Management
Committee and the Risk Management Committee. The Company gives due importance to prudent lending practices and
have implemented suitable measures for risk mitigation, which include verification of credit history from credit
information bureaus, personal verification of a customer’s business and residence, technical and legal verifications. For
credit risk refer note 48(c).
A. Liquidity Risk:
The Company’s ALCO monitors asset liability mismatches to ensure that there are no imbalances or excessive
concentrations on either side of the Balance Sheet.
The Company continuously monitors liquidity in the market; and as a part of its ALCO strategy, the Company maintains
a liquidity buffer managed by an active investment desk to reduce this risk.
The Company maintains a judicious mix of borrowings from banks, money markets and public and other deposits. The
Company continues to diversify its sources of borrowings with an emphasis on longer tenor borrowings. This strategy
of balancing varied sources of funds and long tenor borrowings has helped the Company to maintain a healthy asset
liability position. The Company continues to evaluate new sources of borrowing by way of new routes of funding like
rupee denominated External Commercial Borrowings (ECB) – masala bonds and Foreign currency denominated bonds.
The table below summarises the maturity profile of the undiscounted cash flows of the Company's financial
liabilities:

Financial liabilities Within 12 After 12 Within 12 After 12 Within 12 After 12
months months months months months months
Debt Securities 15,630.37 29,266.31 22,283.03 16,869.70 392.91 3,000.00
Borrowings (other than debt 68,324.75 42,090.36 39,521.58 25,969.94 12,373.68 8,529.71
securities)
Subordinated Debt - 2,500.00 30.45 2,500.00 30.45 1,000.00
Other financial liabilities 3,809.41 4,717.47 2,630.51 2,460.21 1,739.20 1,326.63
Total 87,764.54 78,574.13 64,465.57 47,799.84 14,536.24 13,856.34
The table below shows an analysis of assets and liabilities analysed (maturity analysis) according to when they
are to be recovered or settled.
Within After
As at 31 March 2020 Total
1 year 1 year
Assets
Financial assets
Cash and cash equivalents 5,049.52 - 5,049.52
Bank balances other than cash and cash equivalents 8,620.43 2,676.35 11,296.78
Loans 99,730.34 1,12,958.17 2,12,688.51
Other financial assets 1,696.01 1,172.73 2,868.74
Tax assets (net) - 162.08 162.08
Deferred tax asset (Net) - 1,858.65 1,858.65
Property, plant and equipment - 307.92 307.92
Other Intangible assets - 119.58 119.58
Intangible assets under development - 45.45 45.45
Right-of-use assets - 3,213.65 3,213.65
Other non-financial assets 533.46 55.04 588.50
Total assets 1,15,629.75 1,22,569.62 2,38,199.37
Liabilities
Debt Securities 15,357.79 29,049.58 44,407.37
Borrowings (Other than debt securities) 68,596.58 41,964.65 1,10,561.24
Subordinated Debt 30.10 2,498.34 2,528.44
Other financial liabilities 3,801.36 3,573.50 7,374.86
Current tax liabilities (net) - - -
Provisions 27.09 351.39 378.48
Other non-financial liabilities 661.75 - 661.75
Total liabilities 88,474.68 77,437.45 1,65,912.13
Within After
As at 31 March 2019 Total
1 year 1 year
Assets
Financial assets
Loans 64,599.49 66,663.21 1,31,262.70
Other financial assets 284.71 173.93 458.63
Tax assets (net) - 250.93 250.93
Deferred tax asset (Net) - 1,671.82 1,671.82
Intangible assets under development - 14.76 14.76
Right-of-use assets - 1,672.67 1,672.67
Other non-financial assets 152.44 6.65 159.09
Total assets 87,180.04 72,451.39 1,59,631.43
Liabilities
Debt Securities 22,020.71 16,774.64 38,795.35
Borrowings (Other than debt securities) 39,284.67 25,895.57 65,180.24
Subordinated Debt (0.30) 2,528.44 2,528.14
Other financial liabilities 2,420.19 1,581.31 4,001.50
Provisions 54.38 280.22 334.59
Total liabilities 64,222.41 47,060.18 1,11,282.59
Within After
As at 01 April 2018 Total
1 year 1 year
Assets
Financial assets
Loans 29,702.14 13,148.26 42,850.40
Other financial assets 199.98 30.06 230.04
Tax assets (net) - 161.44 161.44
Deferred tax asset (Net) - - -
Intangible assets under development - - -
Right-of-use assets - 866.15 866.15
Other non-financial assets 124.80 - 124.80
Total assets 37,296.52 16,402.28 53,698.80
Liabilities
Debt Securities 390.80 2,929.38 3,320.18
Borrowings (Other than debt securities) 24,929.64 8,489.56 33,419.19
Subordinated Debt (0.26) 1,009.16 1,008.90
Other financial liabilities 1,630.09 806.67 2,436.76
Provisions 24.70 177.38 202.07
Total liabilities 27,213.27 13,412.13 40,625.40
B. Market Risk:
Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due to changes in the
market variables such as interest rates, foreign exchange rates and equity prices. The Company do not have any exposure
to equity price risk.
(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign currency rates. The Company’s exposure to the risk of changes in foreign exchange rates relates
primary to certain vendors in trade payables.
Foreign currency exposure risk

The Company's exposure for foreign currency risk at the end of reporting period are as follows:

Particulars
US $ ₹ US $ ₹ US $ ₹
Expenses payable - - 560.00 0.39 - -
Note: There were no foreign currency exposure as at 31 March 2020 & 01 April 2018.
Foreign currency sensitivity

The Company’s exposure to the risk of changes in foreign exchange rates is immaterial, and therefore the sensitivity
analysis of the risk in not disclosed.
(ii) Interest rate risk

The Company is subject to interest rate risk, since the rates of loans and borrowing might fluctuate over the tenure
of instrument. Interest rates are highly sensitive to many factors beyond control, including the monetary policies of
the Reserve Bank of India, deregulation of the financial sector in India, domestic and international economic and
political conditions, inflation and other factors. In order to manage interest rate risk, the Company seek to optimize
borrowing profile between short-term and long-term loans. The liabilities are categorized into various time buckets
based on their maturities and Asset Liability Management Committee supervise an interest rate sensitivity report
periodically for assessment of interest rate risks.
Carrying value of borrowings:

Particulars
2020 2019 2018
Debt Securities (variable) 9,500.00 2,496.60 -
Debt Securities (fixed) 34,907.37 36,298.75 3,320.18
Borrowings (other than debt securities) (variable) 42,076.05 30,602.49 17,422.83
Borrowings (other than debt securities) (fixed) 68,485.19 34,577.75 15,996.36
Subordinated debts (variable) - - -
Subordinated debts (fixed) 2,528.44 2,528.14 1,008.90
Total Borrowings 1,57,497.04 1,06,503.72 37,748.27
Sensitivity analysis:
The following table demonstrates the sensitivity to a reasonably possible change in interest rates (all other variables
being constant) of the Company's Statement of profit and loss:
Impact on profit before tax
Interest rate
31 March 2020 31 March 2019
Borrowings, debt securities & subordinate debt
Increase by 50 basis points (257.88) (165.50)
Decrease by 50 basis points 257.88 165.50
C. Credit Risk:
Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment
obligations to the Company. The lending model focuses on SME Lending. The nature of the product is unsecured.
The Company assesses the credit quality of all financial instruments that are subject to credit risk.
Classification of financial assets under various stages
The Company classifies its financial assets in three stages having the following characteristics:
 Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12
month allowance for ECL is recognised.
 Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised.
 Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit
impaired on which a lifetime ECL is recognised.
Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk
when they are 30 days past due (DPD) and are accordingly transferred from stage 1 to stage 2. For stage 1 an ECL
allowance is calculated based on a 12 month Point in Time (PIT) probability weighted probability of default (PD). For
stage 2 and 3 assets a life time ECL is calculated based on a lifetime PD.
The Company has calculated ECL using three main components: a probability of default (PD), a loss given default
(LGD) and the exposure at default (EAD) along with an adjustment considering forward macro-economic conditions.
Financial instruments other than loans were subjected to simplified ECL approach under Ind AS 109 'Financial
Instruments' and accordingly were not subject to sensitivity of future economic conditions.
Below is the summary for the approach adopted by the Company for various components of ECL viz. PD, EAD and
LGD using empirical data where relevant:
 Probability of Default (PD)
The Company’s operates with its internal rating models in which its customers are rate from “A” to “F” using
internal grades. The models incorporate both qualitative and quantitative information and, in addition to
information specific to the borrower, utilise supplemental external information that could affect the borrower’s
behaviour. PDs are then adjusted for Ind AS 109 ECL calculations to incorporate forward looking information
and the Ind AS 109 Stage classification of the exposure.
PD is based on a internal rating model, days past due and various historical, current and forward-looking
information.
Stage 1: based on internal rating model

Stage 2: based on days past due
Stage 3: 100%
 Exposure at Default (EAD)
The exposure at default represents the gross carrying amount of the financial instruments subject to the
impairment calculation.
 Loss given Default (LGD)
LGD values are assessed based on key characteristics that are relevant to the estimation of future cash flows.
The applied data is based on historically collected loss data and involves a wider set of transaction
characteristics as well as borrower characteristics.
Further recent data and forward-looking economic scenarios are used in order to determine the Ind AS 109
LGD rate for each group of financial instruments. When assessing forward-looking information, the
expectation is based on multiple scenarios. Examples of key inputs involve changes in payment status,
geographical location, industrial sector or other factors that are indicative of losses in the company.
Analysis of changes in the gross carrying amount and corresponding ECL allowances in relation to loans is as
follows:
31 March 2020 31 March 2019

Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Opening balance of gross
1,31,103.53 3,205.55 1,766.67 1,36,075.75 42,423.39 1,407.00 1,435.89 45,266.28
carrying amount
Transfers during the year
Transfers to Stage 1 133.97 (133.97) - - 7.06 (7.06) - -
Transfers to Stage 2 (5,399.83) 5,399.83 - - (1,890.52) 1,890.52 - -
Transfers to Stage 3 (3,914.53) (284.47) 4,199.00 - (1,273.33) (15.67) 1,289.00 -
Changes in opening credit

exposures (additional
(82,140.95) (4,784.76) (3,080.19) (90,005.90) (30,573.20) (2,317.30) (1,912.57) (34,803.08)
disbursement net of
repayments)
New credit exposures during
1,68,110.87 3,535.86 1,907.89 1,73,554.62 1,22,410.14 2,248.06 954.35 1,25,612.55
the year, net of repayments
Closing balance of gross
2,07,893.06 6,938.04 4,793.37 2,19,624.47 1,31,103.53 3,205.55 1,766.67 1,36,075.75
carrying amount
31 March 2020 31 March 2019

Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Opening balance of ECL
allowance 3,155.42 664.49 993.15 4,813.05 1,480.29 305.52 630.07 2,415.88
Transfers during the year

Transfers to Stage 1 26.22 (26.22) - - 1.08 (1.08) - -
Transfers to Stage 2 (155.17) 155.17 - - (79.07) 79.07 - -
Transfers to Stage 3 (109.83) 56.49 53.34 - (74.87) (2.69) 77.57 -
Changes in opening credit

exposures (additional
(1,946.32) (42.48) 600.18 (1,388.63) (1,144.54) (175.48) (241.08) (1,561.09)
disbursement net of
repayments)
New credit exposures during
1,746.55 722.07 1,042.91 3,511.53 2,972.54 459.14 526.59 3,958.26
the year, net of repayments
Closing balance of ECL
2,716.87 1,529.51 2,689.58 6,935.96 3,155.42 664.49 993.15 4,813.05
allowance
The table below summarises the gross carrying values and the associated allowances for expected credit loss (ECL)
stage wise for loan portfolio:
As at 31 March 2020
Particulars Stage 1 Stage 2 Stage 3 Total
Gross carrying amount 2,07,893.06 6,938.04 4,793.37 2,19,624.47
Allowance for ECL 2,716.87 1,416.53 2,802.56 6,935.96
ECL Coverage ratio 1.31% 20.42% 58.47% 3.16%
As at 31 March 2019
Gross carrying amount 1,31,103.53 3,205.55 1,766.67 1,36,075.75
Allowance for ECL 3,155.42 664.49 993.15 4,813.05
As at 01 April 2018
Gross carrying amount 42,423.39 1,407.00 1,435.89 45,266.28
Allowance for ECL 1,480.29 305.52 630.07 2,415.88
Measurement uncertainty and sensitivity analysis of ECL estimates:
Expected credit loss impairment loss allowances recognised in the financial statements reflect the effect of a range of
possible economic outcomes, calculated on a probability-weighted basis, based on the economic scenarios described
below.
The recognition and measurement of ECL involves the use of estimation. It is necessary to formulate multiple forward
looking economic forecasts and its impact as an integral part of ECL model.
Methodology
The Company has adopted the use of three scenarios, representative of its view of forecast economic conditions,
required to calculate unbiased expected loss. They represent a most likely outcome i.e. central scenario and two less
likely outer scenarios referred to as the upside and downside scenarios. The Company has assigned a 10% probability
to the two outer scenarios, while the central scenario has been assigned an 80% probability. These weights are deemed
appropriate for the unbiased estimation of impact of macro factors on ECL. The key scenario assumptions are used
keeping in mind external forecasts and Management estimates which ensure that the scenarios are unbiased.
The Company has used multiple economic factors and tested their correlations with past loss trends witnessed. The
economic factors tested were GDP growth rates, growth of bank credit, wholesale price index (WPI), consumer price
index (CPI), industrial production index, crude oil prices, exchange rate and policy interest rates. Based on past
correlation trends, CPI and policy interest rates were the two factors with acceptable correlation with past loss trends
which were in line with Management views on the drivers of portfolio trends. These factors were assigned appropriate
weights to measure ECL in forecast economic conditions.
ECL sensitivity to future economic conditions
ECL coverage of financial instruments under forecast economic conditions:

Gross carrying amount of loans 2,19,624.47 1,36,075.75 45,266.28
Reported ECL 6,935.96 4,813.05 2,415.88
Reported ECL coverage 3.16% 3.54% 5.34%
ECL amounts for alternate scenario

Central scenario (80%) 5,548.77 3,850.44 1,932.70
Downside scenario (10%) 6,242.36 4,331.75 2,174.29
Upside scenario (10%) 7,629.56 5,294.36 2,657.47
ECL coverage ratios by scenario

Central scenario (80%) 2.53% 2.83% 4.27%
Downside scenario (10%) 2.84% 3.18% 4.80%
Upside scenario (10%) 3.47% 3.89% 5.87%
49. Disclosure as per RBI Master Direction DNBR. PD. 008/03.10.119/2016-17, dated September 01, 2016, as
amended from time to time (‘RBI Directions’).
As per the RBI directions the Company was classified as a Systemically Important Non-Deposit taking Company
during the previous financial year based on its assets size. Accordingly, disclosures applicable to Systemically
Important Non-Deposit taking Company as per RBI directions are given.
A. Capital Risk Asset Ratio
Sr.
Items 31 March 2020 31 March 2019 01 April 2018
No.
(a) Capital Risk Asset Ratio (%) 36.19% 38.96% 32.26%
(b) Capital Risk Asset Ratio (%) - Tier I Capital (%) 33.81% 34.70% 26.88%
(c) Capital Risk Asset Ratio (%) - Tier II Capital (%) 2.38% 4.26% 5.38%
(d) Amount of subordinated debt raised as Tier-II capital 2,500.00 2,500.00 1,000.00
B. Details of investments

Current Investments:
1. Quoted: NIL NIL NIL
i. Shares:
a. Equity
b. Preference
ii. Debentures and Bonds
iii. Units of mutual funds
iv. Government Securities
v. Others (please specify)
2. Unquoted: NIL NIL NIL

i. Shares:
a. Equity
b. Preference
Long Term investments:
1. Quoted: NIL NIL NIL
i. Shares:
a. Equity
b. Preference

2. Unquoted: NIL NIL NIL
i. Shares:
a. Equity
b. Preference
C. Disclosure for securitisation*

a. The information on securitisation of the Company as an originator in respect of outstanding amount of
assets securitised under par structure is given below:

Sr. No. Particulars
2020 2019 2018
No. of SPVs sponsored by the NBFC for securitisation
1 11 4 2
transactions
Total amount of securitised assets as per books of the
2 25,016.49 9,117.84 3,464.75
SPVs sponsored by the NBFC
Total amount of exposures retained by the NBFC to
3
comply with MRR as on the date of Balance Sheet
a. Off balance sheet exposure
First Loss 110.53 216.35 384.58
Others - - -
b. On balance sheet exposure
First Loss 3,243.67 804.37 -
Others (Overcollateralization) 3,928.21 1,422.34 -
Amount of exposures to securitisation transactions
4
other than MRR
a. Off balance sheet exposure
I. Exposure to own securitisations
First Loss - - -
Others - - -
II. Exposure to third party securitisations
First Loss - - -
Others - - -
b. On balance sheet exposure
I. Exposure to own securitisations
First Loss - - -
Others - - -
II. Exposure to third party securitisations
First Loss - - -
Others - - -
(*The above figures are based on the information duly certified by the SPV's auditors).
b. During the year, the Company has transferred loans through securitisation. The information on
securitisation activity of the Company as an originator is given below:

Total number of loans securitised 6,311 2,209 1,454
Total book value of the loans
34,064.42 12,793.84 4,573.62
securitised
Total book value of the loans
securitised including loans placed as 34,064.42 12,793.84 4,573.62
collateral
Sale consideration received for the
31,016.86 11,506.72 4,344.94
loan asset securitised
Overcollateralization of the loans
3,047.55 1,287.12 228.68
securitised
Excess interest spread recognised in
584.38 349.32 138.12
the statement of profit and loss

Credit enhancements provided and
outstanding (Gross):
Cash Collateral 2,710.27 804.37 -
Corporate Guarantee 110.53 - 384.58
Loan assets retained as MRR 3,047.55 1,287.12 228.68
D. Disclosure for direct assignment
Details of assignment transactions undertaken by the Company during the year

Particulars
2020 2019 2018
No. of accounts 6,211 2,122 -
Aggregate value (net of provisions) of accounts sold 23,322.06 4,508.28 -
Aggregate consideration 23,322.06 4,508.28 -
Additional consideration realised in respect of
- - -
accounts transferred in earlier years
Aggregate gain / loss over net book value - - -
E. Details of non-performing financial assets sold
Sr.
No.
1 No. of accounts sold 1,456 940 -
2 Aggregate outstanding - - -
3 Aggregate consideration received 157.42 177.12 -
F. Maturity pattern of certain items of assets and liabilities
Year ended 31 March 2020

Particulars
Advances Investments Borrowings
0 day to 7 days 3,779.00 - 1,588.22
8 day to 14 days 1,483.51 - 2,388.40
15 days to 1 month 6,471.04 - 4,299.62
Over 1 month to 2 months 7,233.95 - 12,130.69
Over 2 months upto 3 months 8,500.12 - 7,634.38
Over 3 months to 6 months 25,254.42 - 23,943.64
Over 6 months to 1 year 50,237.01 - 31,999.53
Over 1 year to 3 years 1,11,592.95 - 67,045.06
Over 3 years to 5 years 253.77 - 4,967.51
Over 5 years 4,818.70 - 1,500.00
Total 2,19,624.47 - 1,57,497.04

Particulars
0 day to 7 days 2,359.35 - 3,360.54
8 day to 14 days 1,116.92 - 69.67
15 days to 1 month 5,345.31 - 5,491.18
Over 1 year to 3 years 65,999.90 - 36,297.42
Over 3 years to 5 years - - 6,370.78
Over 5 years 1,601.02 - 2,500.00
Total 1,36,075.75 - 1,06,503.72
Year ended 01 April 2018

Particulars
0 day to 7 days 1,679.32 - 467.99
8 day to 14 days 1,008.17 - 69.25
15 days to 1 month 3,128.57 - 5,242.77
Over 1 year to 3 years 12,991.67 - 8,277.74
Over 3 years to 5 years - - 3,138.89
Over 5 years 1,059.30 - 1,000.00
Total 45,266.28 - 37,748.27
G. Exposures
(a) Exposure to capital market
The Company has no exposure to the capital markets directly or indirectly in the current and previous year.
(b) Exposure to Real Estate Sector

The Company has no exposure to the real estate sector directly or indirectly in the current and previous year.
H. Registration with other financial sector regulator

The company has obtained registration as a Corporate Agent (Composite) in February-2019 with Insurance
Regulatory and Department Authority of India (IRDAI). The Registration no. is CA0641 and is valid till
27-February-2022.
I. No penalties imposed on the Company by the Reserve Bank of India or any other regulator during the year
ended 31 March 2020 (31 March 2019: NIL).
J. Ratings assigned by credit rating agencies and migration of ratings during the year
The overall rating of the Company by India Ratings & research and CRISIL is BBB+/A2 positive. Further,
the Company has obtained rating from ICRA Limited, India Ratings & research and CRISIL in respect of
outstanding securitisation/ assignment transactions, Non-Convertible Debentures and Commercial Paper.
The ratings obtained for the said transactions are provided below.

Instrument
Rating Date Rating Agency Current rating assigned Valid upto
[ICRA]BBB+(Stable)/ [ICRA]A2
12-Mar-20 ICRA 12-Mar-21
Line of assigned
Credit/ Bank India Ratings &
lines 30-Sep-19 IND BBB+/Positive 29-Sep-20
Research
14-May-19 ICRA CRISIL BBB+/Positive 13-May-20
India Ratings &
30-Sep-19 IND A2 (Commercial Paper) 30-Sep-20
Non- Research
Convertible 13-Mar-20 CRISIL CRISIL PP-MLD BBB+/Positive 13-Mar-21
Debentures/ 12-Mar-20 ICRA [ICRA]BBB+(Stable); outstanding 12-Mar-21
CP India Ratings &
30-Sep-19 IND PP-MLD BBB+EMR/Positive 30-Sep-20
Research
17-Feb-20 ICRA ICRA A+ (SO)/ICRA A-(SO) NA
India Ratings &
28-Jun-19 IND A (SO)/IND BBB+(SO) NA
Research
India Ratings & Provisional IND A+
30-Aug-19 NA
Research (SO)/Provisional IND BBB+ (SO)
17-Feb-20 ICRA ICRA BBB+(SO) NA
Securitisation/ India Ratings & Provisional IND A (SO)/Provisional
14-Aug-19 NA
Assignments Research IND BBB+ (SO)
17-Feb-20 ICRA ICRA A (SO) NA
04-Feb-19 ICRA Pool Loss Estimate 4.7%-5.7% NA
30-Apr-19 ICRA Pool Loss Estimate 5%-6% NA
India Ratings &
23-Jul-19 Pool Loss Estimate 5%-5.5% PL2 NA
Research
25-Oct-19 ICRA Pool loss estimate 4.2%-5% NA

Instrument
Rating Date Rating Agency Current rating assigned Valid upto
Provisional A+(SO)[Series
28-Nov-19 CRISIL NA
A1],BBB+(SO)[Series 2]
India Ratings &
27-Dec-19 Pool loss estimate 5.25%-5.75%-PL2 NA
Research
01-Nov-19 ICRA Pool loss estimate 4.65%-5.25% NA
India Ratings & Provisional IND A(SO)/Provisional
04-Feb-20 NA
Research IND BBB+(SO)
19-Feb-20 CRISIL Provisional A (SO)(CRISIL) NA
Provisional CRISIL
27-Feb-20 CRISIL NA
A(SO)/Provisional CRISIL A-(SO)
17-Feb-20 ICRA ICRA A (SO)/ICRA BBB+ (SO) NA

Instrument
Date of rating Rating Agency Current rating assigned Valid upto
Till next
Line of 03-Dec-18 ICRA [ICRA] BBB+/ A2
rating
Credit/ Bank
India Ratings & Till next
lines 12-Jun-18 IND BBB+/Stable
Research rating
Non- Till next
03-Dec-18 ICRA [ICRA] BBB+
Convertible rating
Debentures / India Ratings & Till next
12-Jun-18 IND A2
CP Research rating
13-Jul-18 ICRA [ICRA] A- (SO) NA
30-Jan-19 ICRA Provisional [ICRA] A (SO) NA
30-Jan-19 ICRA Provisional [ICRA] BBB+ (SO) NA
India Ratings &
Securitisation/ 06-Sep-18 IND A- (SO) NA
Research
Assignments
India Ratings &
06-Sep-18 IND BBB+ (SO) NA
Research
India Ratings &
15-Jun-18 IND A- (SO) NA
Research
08-Jun-18 ICRA [ICRA] BBB- (SO) NA
Year ended 01 April 2018

Instrument
Date of rating Rating Agency Current rating assigned Valid upto
Line of
Credit/ Bank 09-Oct-17 ICRA [ICRA] BBB- 30-Jun-18
lines
India Ratings &
28-Nov-17 IND A- (SO) 27-Nov-19
Term Loans Research
26-Mar-18 ICRA [ICRA] A- (SO) 31-Mar-21
Non- 11-Dec-17 ICRA [ICRA] BBB- 21-Dec-21
Convertible 16-Mar-18 ICRA [ICRA] A (SO) 26-Jun-18
Debentures 12-Mar-18 ICRA [ICRA] A (SO) 09-Oct-18
19-Mar-18 ICRA Provisional [ICRA] BBB- (SO) 17-Dec-19
Securitisation
13-Feb-18 ICRA [ICRA] BBB- (SO) 17-Dec-18
K. Break up of ‘Impairment on financial instruments at amortised cost’ shown under the head Expenditure
in the statement of profit and loss
Break up of ‘Impairment and allowance’

shown under the head Expenditure in Profit 31 March 2020 31 March 2019
and Loss Account
Loans 2,148.15 2,397.17
Other financial assets 24.54 18.07
Write offs 9,775.54 2,653.12
L. Concentration of Deposits, Advances, Exposures and NPAs
i. Concentration of Advances
Total Advances to twenty largest
891.38 3,052.47 3,864.64
borrowers
Percentage of Advances to twenty largest
borrowers to Total Advances of the 0.41% 2.24% 8.54%
applicable NBFC
ii. Concentration of Exposures

Total Exposure to twenty largest
891.38 3,052.47 3,864.64
borrowers
Percentage of Exposure to twenty largest
borrowers to Total Advances of the 0.41% 2.24% 8.54%
applicable NBFC
iii. Concentration of NPAs

Total Exposure to top four NPA accounts 114.69 124.91 79.70
M. Sector-wise NPAs
Sr. Percentage of NPAs to Total Advances in that sector

Sector
No. 31 March 2020 31 March 2019 01 April 2018
1 Agriculture & allied activities - - -
2 MSME* 0.44% - -
3 Corporate borrowers 2.39% 0.88% 1.10%
4 Services 1.76% 1.26% 2.65%
5 Unsecured personal loans - - -
6 Auto loans - - -
7 Other personal loans - - -
8 Other retail loans 2.96% 1.45% 2.28%
*The Company does not obtain MSME certificate from its customers, and therefore cases for which MSME
certificates are obtained for internal requirements has been presented over here.
N. Movement of NPAs*
Sr.
No.
i Net NPAs to net advances (%) 0.83% 0.49% 1.03%
ii Movement of NPAs (Gross)
i) Opening balance 1,319.20 929.36 612.49
ii) Additions during the year 13,662.19 4,071.93 3,290.71
iii) Reductions during the year 11,320.38 3,682.08 2,973.84
iv) Closing balance 3,661.01 1,319.20 929.36
iii Movement of net NPAs
i) Opening balance 659.60 464.68 306.25
ii) Additions during the year 6,831.10 2,035.96 1,645.35
iii) Reductions during the year 5,660.19 1,841.04 1,486.92
iv) Closing balance 1,830.51 659.60 464.68
Movement of provisions for NPAs
iv (excluding provision on standard
assets)
i) Opening balance 659.60 464.68 306.25
ii) Provisions made during the
6,831.10 2,035.96 1,645.35
year
iii) Write-off/Write-back 5,660.19 1,841.04 1,486.92
iv) Closing balance 1,830.51 659.60 464.68
*Represents stage 3 loans
O. Classification and provisions for loan portfolio
Asset classification 31 March 2020 31 March 2019 01 April 2018

Loan outstanding
Standard assets 2,14,830.82 1,34,309.08 43,830.40
Non-performing assets 4,793.65 1,766.67 1,435.88
Loss assets 9,775.54 2,653.12 2,312.71
Less: Provision
Standard assets 4,133.40 3,820.96 1,785.81
Non-performing assets 2,802.56 992.10 630.07
Loss assets 9,775.54 2,653.12 2,312.71
Loan outstanding (net)
Standard assets 2,10,697.42 1,30,488.12 42,044.59
Non-performing assets 1,991.09 774.57 805.81
Loss assets - - -
P. Customer Complaints
Sr.
No.
No. of complaints pending at the
i 12 3 -
beginning of the year
ii No. of complaints received during the year 30 62 33
No. of complaints redressed during the
iii 41 53 30
year
No. of complaints pending at the end of the
iv 1 12 3
year
Q. As required by the RBI circular no DNBS.PD.CC. No. 256 /03.10.042 / 2011-12 dated 2nd March 2012 the
details of frauds noticed / reported are as below:

Amount involved - 72.64 142.69
Amount recovered - - 6.59
Amount written off / provided - 72.64 136.10
Balance - - -
R. Comparison between provisions required under IRACP and impairment allowances made under Ind AS
109:
Loss Difference
Gross
Asset Allocation Provision as per Ind
Carrying Net
Asset classification as per classificatio (Provisions) required as AS 109
Amount as Carrying
RBI Norms n as per Ind as required per IRACP provisions
per Ind AS Amount
AS 109 under Ind norms and IRACP
109
AS 109 norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7)=(4)-(6)
Performing Assets
Stage 1 2,07,893.06 2,716.87 2,05,176.19 831.57 1,885.12
Standard
Stage 2 6,938.04 1,416.53 5,521.51 160.46 1,256.02
Subtotal 2,14,831.10 4,133.40 2,10,697.70 992.03 3,141.37
Non-performing Assets
(NPA)
Substandard Stage 3 4,793.37 2,802.56 1,990.81 819.05 1,983.51
Doubtful - up to 1 year
1 to 3 years Stage 3 - - - - -
More than 3 Years Stage 3 - - - - -
Subtotal of Doubtful Stage 3 - - - - -
Loss Stage 3 9,775.54 9,775.54 - 9,775.54 -

Subtotal of NPA 14,568.91 12,578.10 1,990.81 10,594.59 1,983.51
Other items such as Stage 1 - - - - -

guarantees, loan Stage 2 - - - - -
commitments, etc. which are
in the scope of Ind AS 109
but not covered under current
Income Recognition, Asset Stage 3 - - - - -
Classification and
Provisioning (IRACP) norms
Subtotal - - - - -
Stage 1 2,07,893.06 2,716.87 2,05,176.19 831.75 1,885.30

Stage 2 6,938.04 1,416.53 5,521.51 160.46 1,256.08
Total
Stage 3 14,568.91 12,578.10 1,990.81 10,594.59 1,983.51
Total 2,29,400.01 16,711.50 2,12,688.51 11,586.62 5,124.88
50. First-time Adoption of Ind AS
These are the Company’s first financial statements prepared in accordance with Ind AS.
The Company has prepared its Ind AS compliant financial statements for year ended on 31 March 2020, the
comparative year ended on 31 March 2019 and an opening Ind AS Balance Sheet as at 01 April 2018, as described in
the summary of significant accounting policies. This note explains the principal adjustments made by the Company
in restating its previous GAAP financial statements, including the Balance Sheet as at 01 April 2018 and the financial
statements as at and for the year ended 31 March 2019.
For year ended up to the year ended 31 March 2019, the Company had prepared its financial statements in accordance
with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7
of the Companies (Accounts) Rules, 2014 (Previous GAAP).
A. Mandatory exceptions and optional exemptions availed
Set out below are the applicable Ind AS 101 mandatory exceptions and optional exemptions applied in the transition
from previous GAAP to Ind AS, which were considered to be material or significant by the Company.
Mandatory exceptions
The Company has adopted all relevant mandatory exceptions set out in Ind AS 101 which are as below:
(i) Estimates
Ind AS 101 prescribes that an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS
shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments
to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in
error.
The Company’s Ind AS estimates as at the transition date are consistent with the estimates as at the same date
made in conformity with previous GAAP.
(ii) Derecognition of financial assets and financial liabilities

The Company has applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition
to Ind AS.
(iii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the
facts and circumstances that exist at the date of transition to Ind AS.
(iv) Impairment of financial assets

As set out in Ind AS 101, an entity shall apply the impairment requirements of Ind AS 109 retrospectively if it
does not entail any undue cost or effort. The Company has assessed impairment of financial assets in conformity
with Ind AS 109.
Optional exemptions availed
(i) Property, plant and equipment (PPE) and intangible assets

The Company has elected to measure all the items of PPE and intangible assets at its previous GAAP carrying
values which shall be the deemed cost as at the date of transition. As per FAQs issued by Accounting Standards
Board (ASB) of ICAI, deemed cost, is the amount used as a surrogate for the cost or depreciated cost.
Accordingly, from the date of transition the deemed cost becomes the starting point for the purpose of subsequent
depreciation or amortisation. Any accumulated depreciation and provision for impairment under previous GAAP
have no relevance. Accordingly, provision for impairment provided before the date of transition as per previous
GAAP cannot be reversed in later years.
(ii) Leases
Under Ind AS 116, lessees have to recognise a lease liability reflecting future lease payments and a ‘right-of-use
asset’ for almost all lease contracts. Ind AS 116 gives lessees optional exemptions for certain short-term leases
and leases of low-value assets. The Company has recognised lease liability and ‘a right-of-use asset’ for all lease
contracts. Accordingly, interest expense on the lease liability and depreciation on the right-of-use asset portion
is adjusted in retained earnings (net of related deferred taxes) as at the date of transition and subsequently in the
statement of profit and loss for the year ended 31 March 2019.
B. Reconciliation between Ind AS and previous GAAP are given below
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for previous years. The
following table represent the reconciliations from previous GAAP to Ind AS.
(i) Reconciliation of equity as at date of transition 01 April 2018 and as at 31 March 2019
31 March 2019 01 April 2018
Particulars Notes Previous Adjustme Previous Adjustme
Ind AS Ind AS
GAAP nts GAAP nts
Assets
Financial assets
Cash and cash equivalents 16,550.74 - 16,550.74 3,692.50 - 3,692.50
Bank balances other than cash
7,303.59 - 7,303.59 5,617.05 - 5,617.05
and cash equivalents
Loans (i) to (iii) 1,27,356.21 3,906.49 1,31,262.70 44,152.31 (1,301.91) 42,850.40
Other financial assets (iii) & (iv) 319.48 139.15 458.63 274.93 (44.89) 230.04
1,51,530.02 4,045.64 1,55,575.67 53,736.78 (1,346.80) 52,389.98
Tax assets (net) 250.93 - 250.93 161.44 - 161.44
Deferred tax asset (Net) (vii) 975.09 696.73 1,671.82 - - -
Property, plant and equipment 226.15 - 226.15 130.39 - 130.39
Other Intangible assets 60.35 - 60.35 26.03 - 26.03
Intangible assets under
14.76 - 14.76 - - -
development
Right-of-use of assets (v) - 1,672.67 1,672.67 - 866.15 866.15
Other non-financial assets (iv) 138.77 20.32 159.09 124.80 - 124.80
1,666.05 2,389.72 4,055.77 442.66 866.15 1,308.81
Total 1,53,196.07 6,435.36 1,59,631.43 54,179.44 (480.65) 53,698.80
Liabilities and Equity

Liabilities
Debt Securities (i) 39,152.73 (357.38) 38,795.35 3,392.91 (72.73) 3,320.18
Borrowings (Other than debt
57,409.67 7,770.56 65,180.24 33,625.33 (206.13) 33,419.19
securities) (i) & (iii)
Subordinated Debt (i) 2,530.45 (2.31) 2,528.14 1,011.47 (2.56) 1,008.90
Other financial liabilities (iii) & (v) 3,281.13 720.37 4,001.50 1,601.80 834.96 2,436.76
1,02,373.98 8,131.24 1,10,505.22 39,631.51 553.53 40,185.04
Non-Financial liabilities
Provisions 334.59 - 334.59 202.07 - 202.07
Other non-financial liabilities 442.77 - 442.77 238.29 - 238.29
777.36 - 777.36 440.37 - 440.37
Equity
Equity Share capital 3,898.59 - 3,898.59 2,939.13 - 2,939.13
Other equity (i) to (vii) 46,146.14 (1,695.88) 44,450.26 11,168.44 (1,034.17) 10,134.27
50,044.73 (1,695.88) 48,348.85 14,107.57 (1,034.17) 13,073.39
Total 1,53,196.07 6,435.36 1,59,631.43 54,179.44 (480.65) 53,698.80

(ii) Reconciliation of equity as at 01 April 2018 and as at 31 March 2019 summarised in below table :
Particulars Notes 31 March 2019 01 April 2018
Equity as per Indian GAAP (A) 46,146.14 11,168.44
Ind AS Adjustments
Impact of EIR of borrowings measured at amortised cost (i) 611.01 281.43
Impact of EIR of loans measured at amortised cost (i) (355.37) 49.42
Impact of Securitisation of loans (iii) 617.20 413.11
Impact of assignment of loans (iii) 258.98 -
Impact of impairment of loans (ii) (3,451.62) (1,766.04)
Impact of impairment of other financial assets (ii) (18.07) -
Impact of fair valuation of security deposits (iv) (2.70) -
Impact on account of lease accounting as per Ind AS 116 (v) (52.04) (12.09)
Deferred tax on above adjustments (vii) 696.73 -
Total adjustments (1,695.88) (1,034.17)
Equity as per Ind AS (A) 44,450.26 10,134.27
(iii) Reconciliation of total comprehensive income for the year ended 31 March 2019
Previous
Particulars Notes Adjustments Ind AS
GAAP
Revenue from operations
Interest Income (i) & (iii) 24,562.66 (3,308.34) 21,254.32
Net gain on derecognition of financial instruments
under amortised cost category (iii) - 525.37 525.37
Total Revenue from operations 24,562.66 (2,782.97) 21,779.69
Other Income (iii) & (iv) 17.11 7.96 25.07
Total income 24,579.77 (2,775.01) 21,804.76
Expenses
(i), (iii), (iv)
Finance Costs 8,269.98 (155.65) 8,114.33
& (v)
Fees and commission expenses (i) 3,240.54 (2,910.56) 329.98
Impairment of financial instruments (ii) 3,334.81 1,733.56 5,068.36
Employee Benefit Expense (vi) 3,078.32 4.91 3,083.23
Depreciation, amortisation and impairment (v) 125.70 124.18 249.89
(i), (iii) &
Other Expenses 3,247.41 (208.11) 3,039.30
(v)
Total Expense 21,296.76 (1,411.67) 19,885.10
Profit Before Tax 3,283.01 (1,363.34) 1,919.67
Tax Expense :
- Current tax 820.93 - 820.93
- Deferred tax (income) / expense (vii) (975.09) (698.16) (1,673.25)
(154.16) (698.16) (852.31)
Profit after tax 3,437.17 (665.19) 2,771.98
Other comprehensive income

(a) Items that will not be reclassified to profit or
loss
- Remeasurements of the defined benefit plans (vi) - 4.91 4.91
(b) Income tax relating to items that will not be (vii) - (1.43) (1.43)
reclassified to profit or loss
Other comprehensive income, net of tax - 3.48 3.48
Total Comprehensive Income 3,437.17 (661.71) 2,775.46
(iv) Reconciliation of total comprehensive income for the year ended 31 March 2019 summarised in below table:
Particulars Notes 31 March 2019

Total net profit after tax as per Indian GAAP 3,437.17
Ind AS Adjustments
Impact of EIR of borrowings measured at amortised cost (i) 329.58
Impact of EIR of loans measured at amortised cost (i) (404.79)
Impact of impairment of loans (ii) (1,685.57)
Impact of impairment of other financial assets (ii) (18.07)
Impact of security deposit (iv) (2.70)
Impact of direct assignment (iii) 258.98
Impact of securitisation (iii) 204.09
Impact on account of lease accounting as per Ind AS 116 (v) (39.95)
Remeasurement of gains/ (losses) on defined benefit plans (vi) (4.91)
Deferred tax on above adjustments (vii) 698.16
Total adjustments (665.19)
Profit after tax as per Ind AS 2,771.98
Other Comprehensive income

Remeasurement of gains/ (losses) on defined benefit plans (vi) 4.91
Deferred tax on above adjustment (vii) (1.43)
Total 3.48
Total comprehensive income under Ind AS 2,775.46
Explanations to reconciliation
(i) EIR adjustment of transaction costs/incomes integral to the sourcing of loans/borrowings

Under previous GAAP, all the transaction costs/incomes integral to sourcing of loans/borrowings were
recognised upfront on an accrual basis. Under Ind AS, these transaction costs/incomes related to sourcing of
loans/borrowings are amortised using the effective interest rate (EIR) and the unamortised portion is adjusted in
retained earnings (net of related deferred taxes) as at the date of transition and subsequently in the statement of
profit and loss for the year ended 31 March 2019.
(ii) Impairment of financial assets

Under previous GAAP, loan losses and provisions were computed basis RBI guidelines and management
estimations. Under Ind AS, the same is required to be computed as per the impairment principles laid out in Ind
AS 109 – 'Financial Instruments' which prescribes the expected credit loss model (ECL model) for the same.
Accordingly, the difference between loan losses and provisions as computed under previous GAAP and as
computed under Ind AS is adjusted in retained earnings (net of related deferred taxes) as at the date of transition
and subsequently in the statement of profit and loss for the year ended 31 March 2019.
(iii) Service asset

Under Ind AS 109, an entity on transfer of a financial asset that qualifies for derecognition in its entirely and
retains the right to service the financial asset for a fee, shall on the date of derecognition recognise a servicing
asset at fair value of fees to be received over the contractual life in excess of its cost of the servicing obligation.
The impact of fair value change is recognised in statement of profit and loss. Under previous GAAP such
revenues were recognised in statement of profit and loss over servicing period. Accordingly, the fair value of
service asset is adjusted in retained earnings (net of related deferred taxes) as at the date of transition and
subsequently in the statement of profit and loss for the year ended 31 March 2019.
(iv) Interest free deposits:

Under Indian GAAP, interest free security deposits (that are refundable on completion of the contract) are
recorded at their transaction value. Under Ind AS, all financial assets are to be recorded at fair value. Accordingly,
the company has fair valued these security deposits under Ind AS. Difference between the fair value and the
transaction value of the security deposits has been recognised in prepaid expenses.
(v) Leases:
Under the Indian GAAP, lease rentals related to operating lease were accounted as expense in statement of profit
and loss. Under Ind AS, lease liability and right of use is recorded at present value of future contractual rent
payment on initial date of lease. Subsequently, finance cost is accrued on lease liability and lease payments are
recorded by way of reduction in lease liability. ROU is depreciated over lease term.
(vi) Components of other comprehensive income (OCI)

Under Ind AS, re-measurement gains/(losses) on defined benefit plans has been recognised in other
comprehensive income reserve (net of related deferred taxes) as at the date of transition and for the year ended
31 March 2019 and subsequently in the OCI section in the Statement of Profit and Loss for the year ended 31
March 2019. There is no impact on the total equity
(vii) Deferred taxes

Under the Indian GAAP, deferred tax was accounted as per the income statement approach which required
creation of deferred tax asset/ liability on timing differences between taxable income and accounting income.
Under Ind AS, deferred tax is accounted as per the balance sheet approach which requires creation of deferred
tax asset/ liability on temporary differences between the carrying amount of an asset/ liability in the Balance
Sheet and its corresponding tax base. The adjustments in equity and net profit, as discussed above, resulted in
additional temporary differences on which deferred taxes are calculated.
Impact of Ind AS adoption on the Statement of Cash Flows for the year ended 31 March 2019
There are no material adjustments on transition to Ind AS in the Statement of Cash Flows for the year ended 31 March
2019.
51. The Company has reclassified/regrouped previous year figures to conform to current year’s classification, where
applicable.
ICAI Firm Registration number:
301003E/E300005

Mithun Sundar

Place: Mumbai Place: Mumbai
Date: 30 June 2020 Date: 30 June 2020

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LENDINGKA T

Think cash, Think Lendingkart Group!

LENDINGKART FINANCE LIMITED

Dear Shareholders & fellow Lendingkart-ians,

Lendingkart Customer Profile:

Boosting growth through innovation in distribution and partnerships:

Best in class MSME portfolio:

Business Continuity Plan in times of Crisis:

Wishing all of you a safe year ahead.

INDEPENDENT AUDITOR’S REPORT

To the Members of Lendingkart Finance Limited

Report on the Audit of the Ind AS Financial Statements

Basis for Opinion

Our opinion is not modified in respect of this matter.

Responsibility of Management for the Ind AS Financial Statements

Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements

Report on Other Legal and Regulatory Requirements

For S.R. Batliboi & Co. LLP

per Jayesh Gandhi

Place of Signature: Mumbai

Re: Lendingkart Finance Limited

As informed, the provisions of repayment of loans or borrowing to government are currently

For S.R. Batliboi & Co. LLP

per Jayesh Gandhi

Place of Signature: Mumbai

Management’s Responsibility for Internal Financial Controls

For S.R. Batliboi & Co. LLP

per Jayesh Gandhi

Place of Signature: Mumbai

Total assets 2,38,199.38 1,59,631.43 53,698.79

Liabilities and Equity

Total liabilities and equity 2,38,199.38 1,59,631.43 53,698.79

per Jayesh Gandhi Harshvardhan Lunia

Mohit Bajaj Umesh Navani

For the year ended For the year ended

Profit before tax 4,194.28 1,919.67

Earning per equity share (₹):

Summary of significant accounting policies 3

per Jayesh Gandhi Harshvardhan Lunia

Mohit Bajaj Umesh Navani

Place : Mumbai Place : Mumbai

Equity share capital

Summary of significant accounting policies 3

per Jayesh Gandhi Harshvardhan Lunia

Mohit Bajaj Umesh Navani

Place : Mumbai Place : Mumbai

Particulars 31 March 2020 31 March 2019

Changes in working capital:

Particulars 31 March 2020 31 March 2019

Components of cash and cash equivalents

Summary of significant accounting policies 3

per Jayesh Gandhi Harshvardhan Lunia

Mohit Bajaj Umesh Navani

Place : Mumbai Place : Mumbai

2.1 Presentation of financial statements

3. Significant accounting policies

(i) Recognition of interest income

The effective interest rate method

b. Net gain on fair value changes