Indiabulls Housing Finance Annual Report Fy 2019 20 0253611001597460978 PDF

Forward-looking statements
This Annual Report and other statements – wri en and oral – that we periodically
make contain forward-looking statements that set out an cipated results based on
the management’s plans and assump ons. We have tried, wherever possible, to
iden fy such statements by using words such as ‘an cipate’, ‘es mate’, ‘expects’,
‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connec on
with any discussion of future performance. Although we have been prudent in our
assump ons, we cannot guarantee that these forward-looking statements will be
realised. The achievement of results is subject to risks, uncertain es and even
inaccurate assump ons. Should known or unknown risks or uncertain es
materialise, or should underlying assump ons prove inaccurate, actual results
could materially vary from those an cipated, es mated or projected. Readers
should bear this in mind. We undertake no obliga on to publicly update any
forward-looking statement whether as a result of new informa on, future events
or otherwise.
A home represents physical, mental and financial
security. Indiabulls Housing Finance’s core
objec ve is to help our customers own a home.
To millions of Indian home buyers, our
technology-led offerings and hassle free-
pla orms offer an easy and seamless experience.
Our solu ons keep pace with technological
advances to deliver seamless customer
experience and efficient solu ons. We were the
first lender to launch an end-to-end home loan
fulfillment channel and it is our endeavor to
reach out to every Indian aspiring to own a home.
Through eHome Loans, our online home loan
fulfillment channel, we have successfully
managed to reach poten al customers in er II
and er III ci es. Through such customer-focused
solu ons and improved service standards, we
strive to be the preferred housing finance
partner for Indian home buyers.
Indiabulls Housing Finance Limited | Annual Report 2019-20
01-24
Corporate Informa on 03
Indiabulls Housing Finance Limited at a Glance 04
Our Pillars of Stakeholders 06
FY20 Highlights 07
Shareholder Returns Since Lis ng 08
Indiabulls e-Home Loans: Unlocking the Power of Digital 10
Powering the Digital Home Buying Ecosystem 12
Caring for the Community 14
A Glimpse into the Year 2019-20 18
Company Honours 20
Management Team 21
Message from our Vice Chairman 22
25-94
Boards Report 25
Management Discussion and Analysis Report 59
Business Responsibility Report 65
Report on Corporate Governance 73
95-296
Consolidated Financials 95
Standalone Financials 189
02 |
01-24 Company Report 25-94 Statutory Report 95-296 Financial Statement
BOARD OF DIRECTORS REGISTRAR & TRANSFER AGENT

Mr. Sameer Gehlaut (Chairman upto 12th Aug 2020) KFin Technologies Private Limited
Mr. Subhash Sheoratan Mundra (Chairman w.e.f. 12th Aug 2020) Unit: Indiabulls Housing Finance Limited,
Mr. Gagan Banga Selenium Building, Tower B, Plot No. 31-32,
Mr. Ajit Kumar Mi al Gachibowli, Financial District, Nanakramguda,
Mr. Ashwini Omprakash Kumar Serilingampally Mandal, Hyderabad - 500 032
Mr. Sachin Chaudhary
Jus ce Mrs. Gyan Sudha Misra (Retd.)
Mr. Sa sh Chand Mathur BANKERS
Mr. Achuthan Siddharth • Andhra Bank
Mr. Shamsher Singh Ahlawat • Australia and NewZealand Banking Group Ltd
Mr. Prem Prakash Mirdha • Axis Bank
• Bank of Baroda
CFO • Bank of India
Mr. Mukesh Garg • Bank of Maharashtra
• Barclays Bank
COMPANY SECRETARY • Canara Bank
Mr. Amit Jain • Catholic Syrian Bank
• Central Bank of India
INVESTOR RELATIONS • Ci bank N.A.
Mr. Ramnath Shenoy • Corpora on Bank
Tel: 022-61891444 • Deutsche Bank
Email: investor.rela ons@indiabulls.com • Federal Bank
• HDFC Bank
STATUTORY AUDITORS • ICICI Bank
S.R. Batliboi & Co. LLP • IDBI Bank
[Indian Member Firm of Ernst & Young] • IDFC Bank
Chartered Accountants • Indian Bank
12th Floor, The Ruby29 Senapa Bapat Marg, Dadar (West), • Indian Overseas Bank
Mumbai – 400 028, Maharashtra • IndusInd Bank
• Industrial and Commercial Bank of China
INTERNAL AUDITORS • Karnataka Bank
Grant Thornton India LLP • Kotak Mahindra Bank
(Formerly Grant Thornton India) • MUFG Bank Ltd.
Plot No. 19A 7th Floor, Sector - 16A, Noida - 201 301 • Oriental Bank of Commerce
• Punjab and Sind Bank
SECRETARIAL AUDITORS • Punjab Na onal Bank
Neelam Gupta & Associates Company Secretaries • RBL Bank Ltd
D-2/16, Darya Ganj, New Delhi – 110002 • Shinhan Bank
• State Bank of India
REGISTERED OFFICE • Sumitomo Mitsui Banking Corpora on
M-62&63,First Floor, Connaught Place, New Delhi - 110001 • Syndicate Bank
Email: helpdesk@indiabulls.com • The Hongkong and Shanghai Banking Corpora on
Tel: 011-30252900, Fax:011-30156901 • UCO Bank
Website: www.indiabullshomeloans.com • Union Bank of India
• United Bank of India
CORPORATE OFFICES • Yes Bank
Indiabulls House, Indiabulls Finance Centre, Senapa Bapat Marg,
Elphinstone Road, Mumbai – 400 013, Maharashtra
Indiabulls House,
448-451, Udyog Vihar, Phase-V, Gurugram – 122 016, Haryana
| 03
• To enable a hassle free and

smooth home buying experience
• To ensure housing finance is

made more accessible and
affordable
04 |
Indiabulls Housing Finance Ltd. (IBHFL) is the third largest housing finance company in the country. We have over 1 million happy
home owners, and we have totally disbursed loans of over Rs. 2.72 lakh crores.
Customer delight is and has always been a priority for us. Our competency to deliver to our customers quick solu ons and
seamless experiences lies in the exper se of our 5,400+ employees opera ng out of our na onwide network of 140+ branches,
our 8,800+ external channel partners and ahead-of-its- me digital pla orms that offer customized solu ons and round-the-clock
service to our customers.
Home Loans for Resident Indians Home Loans for NRIs

We handhold our customers through the en re home For those that dream of having a home when away
buying process, right from selec ng the perfect from home, we help Non-Resident Indians as well as
property to conduc ng due diligence, approval of the the Persons of Indian Origin with loan solu ons for
selected property and disbursal of the home loan. To purchasing a new home in their motherland.
ensure customer sa sfac on, we provide tailor-made
home loan solu ons for a seamless experience.
Loan Against Property Home Loan Balance Transfer

These loans help our customers unlock the value of These solu ons help customers transfer their balance
their property, and put this money to work. home loan or loan against property amount to
Indiabulls Housing for be er terms or for a top-
uploan amount.
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CUSTOMER CENTRIC
A ‘Customer-First’ approach is at the core of our
opera ons. Along with our focus on customer experience,
we also strive to ensure transparency in opera ons. This
has enabled us to successfully serve over 1 million happy
customers.
OUR PEOPLE
Our most valuable asset is our team of over 5,400
hardworking employees. We are proud of their
commitment to high standards of excellence, especially
when it comes to customer service and sa sfac on. The
Company gives employees opportuni es for personal
development and provides a healthy work-life balance.
STRONG RELATIONSHIPS
Our external stakeholders, including investors,
shareholders, banks and developers, have helped us build
a powerful housing finance franchise.
• Almost 600 ins tu onal partners: 18 PSU banks, 16

Private and Foreign banks and 563 Mutual Funds,
Provident Funds, Pension Funds, Insurance Companies
and Corporates.
• 11,300+ pre-approved projects across India through our
network of developers.
• Numerous domes c ins tu onal shareholders, channel
partners, investment bankers, legal firms etc.
NATIONWIDE NETWORK
Our digital pla orms (website and app) along with our
physical branches and channel partners have enabled us
to reach poten al home buyers and exis ng customers
across the world. The current pandemic has further
increased the visibility and usage of our virtual presence
(both digital and social), thereby enabling us to serve our
customers efficiently and effortlessly.
06 |
3
Largest Indian
Housing Finance Company
` 1,02,872 cr.
Balance Sheet
` 13,223 cr.
Revenue
` 4,711 cr.
NII
` 2,200 cr.
PAT
` 52
EPS
` 5,400+
Employees
| 07
Sep 2004:
IPO at ₹ 19 per share
Raised ₹ 51.7 Cr
Market cap at lis ng: ₹ 253 Cr
08 |
DIVIDENDS PAID
Total Dividend Paid (Rs. Cr.) Dividend Per Share
FY 05-06 ₹ 29 ₹ 1.8
FY 06-07 ₹ 55 ₹ 3.0
FY 07-08 ₹ 218 ₹ 8.5
FY 08-09 ₹ 51 ₹ 2.0
FY 09-10 ₹ 166 ₹ 5.0
FY 10-11 ₹ 311 ₹ 10.0
FY 11-12 ₹ 405 ₹ 13.0
FY 12-13 ₹ 625 ₹ 20.0
FY 13-14 ₹ 966 ₹ 29.0
FY 14-15 ₹ 911 ₹ 26.0
FY 15-16 ₹ 1,783 ₹ 45.0
FY 16-17 ₹ 1,142 ₹ 27.0
FY 17-18 ₹ 1,744 ₹ 41.0
FY 18-19 ₹ 1,707 ₹ 40.0
FY 19-20 ₹ 1,320 ₹ 31.0
Total ₹ 11,433 ₹ 302.3
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Smart City Home Loans

Smart City Home Loans is a technology-
leveraged, cost-effec ve loan product for
up-country loca ons. Effec ve deployment
of technology enables us to operate lean
branches helping realize be er margins and
importantly enabling us to offer efficient
lending solu ons to our customers.
10 |
Our pioneering home loan fulfillment pla orm-

eHome Loans, offers our customers a seamless and
efficient digital experience, right from the
applica on stage to loan disbursal.
e-Apply
This is a simple e-form, through which customers can submit
their applica ons online, and also upload all required
documents. It has u li es such as EMI calculators and offers
customers informa on on claiming tax deduc ons on their home
loan repayments. Customers readily have all the informa on
they need at the applica on stage of a home loan.
e-Sanc on
A real- me under wri ng module, which on consent provided by
the customer, pulls informa on from customer bank accounts,
credit bureaus etc, to be fed into an analy cs-driven
underwri ng engine. Credit decisioning is real- me and
objec ve.
e-Disbursal
Final stage of the disbursal process where the customer can
ini ate disbursal credit directly into payee account. Subsequent
tranches of disbursals for under-construc on proper es, can
also be seamlessly done in real- me, cu ng down mul -week
turn-around mes in the pen-paper mode of loan fulfillment.
e- Engage
This offers real- me, 24x7 customer service and is equipped with
AI enabled chatbots and voice recogni on so ware. It also
allows customers to apply for top up loans on their exis ng loans.
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12 |
Through superior customer experience and service, IBHFL aims

to emerge as the preferred home financier for prospec ve
homebuyers. The Company also strives to play a larger and
pivotal role in the overall housing ecosystem through analy cs
and technology-driven solu ons.
Besides home loan fulfillment and customer service, the eHome

Loans pla orm also enables the Company to interact with its
various channel partners such as developers, direct sale agents
(DSA), insurance solu on providers, etc. on one integrated
pla orm. This enables real- me disbursal of home loan monies
to developers from whom customers buy their houses, and real-
me payment of origina on fees to channel partners like DSAs.
Customers can also avail of insurance solu ons and investment

solu ons on the pla orm. As the pla orm grows, other
solu ons/ services around home purchase will also be offered.
As customers and other stakeholders use the pla orm on an

ongoing basis, analy cs on the data so collected will help us
be er an cipate their requirements to offer mely solu ons.
This will also present revenue genera on opportuni es for the
Company.
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1st APRIL 2019 - 31st MARCH 2020
IBF Scholarship
The Indiabulls Founda on Scholarship
Program encourages children from
economically challenged backgrounds to
pursue higher educa on. Many student
beneficiaries of the scholarship have
cleared the recently held UPSC exams and
will go on to become officers in the
various Indian Administra ve Services
and serve the na on. 246 students were
awarded scholarships in this financial
year, taking the total tally to 1,379
students since incep on.
Jan Swasthya Kalyan Vahika (JSKV)-Mobile Medical Vans

JanSwasthya Kalyan Vahika is a community centric project ini ated by Indiabulls Founda on, a CSR implementa on agency of
Indiabulls Housing Finance Limited. The objec ve of this project is to provide free primary healthcare services to the under-
privileged popula on through medically equipped vans. This year, with an addi on of 5 more JSK vans, IBHFL had a total of 43
mobile medical vans in its fleet, these operate in Mumbai, Thane, Raigad & Palghar districts of Maharashtra. This programme has
successfully diagnosed and treated more than 12,41,083 pa ents this financial year, taking the cumula ve count of pa ents
treated since incep on to 39,70,383 ll 31st March 2020.
14 |
Indiabulls Founda on Charitable

Clinics
Indiabulls Housing Finance Limited through its
CSR implementa on agency Indiabulls
Founda on is operates 15 Free Medical Clinics
Pan-India. These clinics cater to the primary
and preven ve healthcare needs of pa ents
from the weaker and underprivileged sec ons
of the society. These clinics are equipped with
the best primary healthcare services, well-
qualified healthcare teams, and all the
required medicines. This financial year, these
clinics have successfully diagnosed and
treated more than 4,03,031 pa ents, taking
the cumula ve count of pa ents treated to
more than 8,59,927 since incep on up ll
March 31, 2020.
Cle and Palate Surgeries

In the financial year 2019-20, Indiabulls
Housing Finance Limited, through its CSR
implementa on agency Indiabulls
Founda on, sponsored cle and palate
surgeries of 2,200 children from
underprivileged sec ons of the society. These
surgeries were performed across different
states of India such as Andhra Pradesh, Assam,
Meghalaya, Arunachal Pradesh, Haryana,
Odisha, Karnataka, U ar Pradesh,
U arakhand, Gujarat, Madhya Pradesh,
Punjab and Kerala. Since incep on, 6,000
children’s cle and palate surgeries have been
supported by Indiabulls Founda on.
BEFORE AFTER
Water Wheel
Access to potable water is a big challenge in
rural India. People, usually the women folk,
have to walk many miles to a source of water.
In the financial year 2019-20, Indiabulls
Housing Finance Limited through Indiabulls
Founda on, has distributed 10,761 water
wheel drums to the underprivileged tribals of
Raigad, Palghar and Thane districts of
Maharashtra benefi ng more than 59,000
villagers. The water wheel consists of a drum &
a handle that can carry 45 litres of water per
filling. Since incep on, more than 82,000
p e o p l e h ave b e n efi e d t h ro u g h t h e
distribu on of 15,000 such water wheels.
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Kumud- Sanitary Napkin Paush k Aahar-Nutri on Supplement

Kumud project is an ini a ve that addresses women’s health Paush k Aahar is a nutri onal supplement made of natural
and sanita on requirements. Women and adolescent girls and indigenous ingredients. Indiabulls Housing Finance
from rural areas are provided one year’s stock of sanitary Limited through Indiabulls Founda on, distributes Paush k
napkins so that they do not have to revert to unhygienic Aahar to those at risk of malnutri on, specifically children,
methods pu ng their health at risk. 50,000 women have pregnant and lacta ng women. This project has been
benefi ed in the financial year 2019-20 from this ini a ve. successfully implemented in Mumbai, Thane, Palghar, Raigad,
Since incep on, 1,95,220 women and adolescent girls have Nashik Districts. 5,81,420 individuals benefi ed in the
benefi ed from this ini a ve. financial year 2019-20 and 15,51,002 individuals have
benefi ed since incep on.
Solar Renewable Energy

With the inten on of ligh ng up Tribal Ashram schools, Indiabulls Housing
Finance Limited through its implemen ng agency Indiabulls Founda on has
installed Solar Energy Plants in 10 different tribal ashram schools in
Maharashtra. Prior to the project, the schools used to face repeated power
outages. These plants provide electricity round-the-clock to these schools, and
will do so for approximately 25 years absolutely free of cost. These 10 solar
plants will benefit approximately 16,000 students every year. Since incep on,
Indiabulls Founda on has installed 25 such solar plants in various tribal ashram
schools, which has benefi ed more than 32,000 students.
16 |
Traffic Awareness Environment and Beau fica on

To increase traffic awareness, Indiabulls Housing Finance Limited To support the "Green Mumbai Clean Mumbai"
through its implementa on agency Indiabulls Founda on, collaborated campaign of Municipal Corpora on of Greater
with local police authori es to install traffic signage boards in Navi Mumbai, Indiabulls Housing Finance Limited has
Mumbai, Vasai, Virar and Shirdi – the various suburbs of the Mumbai carried out beau fica on of key arterial roads of
Metropolitan Region. These boards carry awareness message as well as Mumbai. IBH has also carried out beau fica on work
traffic management instruc ons/designa ons. 300 traffic awareness of traffic islands, and beau fica ons of Mumbai’s
boards were installed in Navi Mumbai alone. 40 boards were placed in seaside promenades. Your company also maintains
Shirdi and 150 boards in Vasai/ Virar respec vely. othertraffic island parks that it has constructed in the
past in Mumbai.
Skill Development
In this financial year, Indiabulls Housing Finance Limited through its
implemen ng agency Indiabulls Founda on trained rural youth and
women in various domains such as electrical, automobiles, welding,
tailoring etc. 475 school dropouts between 18-30 years of age have not
only received voca onal training, but many of them have also secured
jobs in the financial year 2019-20. Since incep on 1892 youths have
been trained and provided employment.
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Vintage Awards Leadership Branch Visit
Interna onal Yoga Day
Independence Day Celebra ons Christmas Celebra ons
18 |
Indiabulls Home Loans Marathon Press Club Awards
Blood Dona on Camp
Cricket Live Screening Diwali Celebra ons
| 19
CRISIL AA
ICRA AA
CARE AA
BRICKWORKS AA+
CRISIL A1+
CARE A1+
Ranked 20th among India’s Best

Companies to Work For 2019
A study by Economic Times & Great Place to
Work ® Ins tute
India’s Best Workplaces in BFSI - 2019

By Great Place to Work ® Ins tute
India’s Best Workplaces in NBFC - 2019

By Great Place to Work ® Ins tute
20 |
Ajit Mi al Ashwini Kumar Sachin Chaudhary

Execu ve Director Deputy Managing Director Chief Opera ng Officer
Mukesh Garg Nafees Ahmed Ashwin Mallick

Chief Financial Officer Chief Informa on Officer Head, Treasury
Ramnath Shenoy M. S. Walia Ripudaman Bandral

Head, Analy cs & Director, Sales - Home Loans Na onal Sales Head - LAP
Investor Rela ons
Rajiv Gandhi Somil Rastogi Naveen Uppal

Head, Commercial Credit Head, Credit Chief Risk Officer
| 21
Vice Chairman, MD & CEO
22 |
Dear Shareholders and Friends, liquidity. Our total loan assets are at ₹ 93,021 Crores. Profit
The year 2020 will go down as annus horribilis with the en re a er tax for the year stood at ₹2,200 Crores. Adjusted for
world reeling from a once-in-a-century pandemic. The COVID- COVID-19 provisions, the PAT for the year was ₹2,904
19 virus, which countries around the world believed and Crores.
hoped could be contained through strict lockdown measures
of a few weeks, now half a year later, seems to be an all- Despite the ght liquidity condi ons, your Company
consuming juggernaut. While some countries have been able con nued to strictly adhere to its liquidity management
to bend the curve, sporadic outbreaks have driven home the principles and held cash and investments of ₹13,410 Crores at
message that in an interconnected world, no one recovers ll end of FY 2019-20, represen ng 18.4% of its loan book. Your
everyone does. Company had a fully matched ALM with no nega ve
mismatches in any bucket, and is already fully in compliance
Indian economy, which was already limping before the with guidelines issued by the RBI on November 4, 2019, which
outbreak of COVID-19, came to a grinding halt as COVID-19 permits 10% to 20% mismatch in various me buckets. Our
mandated total lockdown disrupted the social, economic and capital adequacy as at end of FY 2019-20 stood at 22.82%,
financial structures of the country. The NBFC / HFC sector, with Tier 1 at 15.05% against a regulatory requirement of 13%
which has been going through a liquidity crisis since the IL&FS and 10% respec vely. At a gearing of 4.0x, your Company is
default in September 2018, and the resultant risk aversion on one of the least levered companies among its peers.
part of the debt markets and the banking system, came under
further pressure on account of COVID-19. The government of Transforming Business Strategy to an Asset-Light Model
India and the RBI have responded swi ly, announcing The crisis of the past 21 months has made us realize that the
sweeping measures to arrest the economic slowdown by HFC business will now have to go through a cyclical shi
facilita ng credit flow to the affected sectors. Specific wherein chunky balance sheets and high leverage will have to
measures were also announced towards providing liquidity transform into leaner balance sheets by following an asset
support to HFCs, NBFCs and MFIs. The RBI provided liquidity light model of business. While your Company's total loans
boost to these sectors through its TLTRO 2.0 opera ons worth under management [AUM] will grow, the exposure on its
₹50,000 Crores; special liquidity scheme of upto ₹30,000 balance sheet will be significantly lower, thus reducing the
Crores; Par al Credit Guarantee Scheme of ₹45,000 Crores; requirement for large borrowings and high leverage. As the
and more recently ₹10,000 Crores through Addi onal earnings will be propor onal to the en re AUM, this model
Standing Liquidity Facility. Your Company also availed of will be RoE accre ve, while business risks will remain
funding through these facili es. contained.
As I have men oned in my quarterly results' calls and in other We see opportunity in co-origina ng loans with banks and
interac ons with you, running down our developer loan book credit funds, and increased por olio sell-downs. In retail loans
is a key area of priority for me and the senior management the Company will originate home loans and MSME LAP loans
team. Over the last two years we have managed to generate which it can then securi ze to banks and other financial
significant amounts of liquidity by selling down or ge ng the ins tu ons. Of all the incremental business generated, only a
developer loans on our books refinanced. Presently, we are in rela vely small propor on will stay on the Company's
the midst of a few more similar transac ons with various balance-sheet, while the rest will be off-balance sheet.
por olio investment funds, which will enable us to mone se a
large part of our wholesale por olio and generate liquidity. Mone zing Stake in OakNorth Bank
In November 2015, IBHFL acquired 39.76% stake in OakNorth
Bank for $100 Million. Since then, Oaknorth Bank has
Opera onal Performance Overview
Our balance sheet size at the end of FY2019-20 stood at ₹ emerged as one of the fastest growing banks in Europe,
1,02,872 Crores, declining from ₹1,30,104 Crores as at end leveraging technology tools for fast and efficient disbursals to
of FY 2018-19 mainly on account of decrease in loan book the Small and Medium Enterprises [SME] sector. Resource
as we sold down retail loans during the year to generate raising is also completely online, with the en re deposits for
| 23
kind bank where the bank has no physical branches. Within plans have been put on hold ll September 2020. Other non-
four years of opera ons, OakNorth Bank's deposits have risen salary opera ng expenses such as adver sing, travel and all
to just under $3 Billion and loan assets are at over $4 Billion. other discre onary expenses too have been frozen ll
A er a par al stake sale in Dec 17 to GIC - sovereign wealth September 2020.
fund of Singapore, for $121 Million [₹768 Crores], and various
equity funding rounds undertaken by OakNorth Bank, your The slowing economy and the recessionary effects will also
Company's holding in the Bank now stands at 15.71%. We affect the repayment capability of all borrowers - retail as well
believe this is an ideal me to reap the benefits of this very as wholesale. Since the moratorium on loans has been
successful investment through a complete or par al stake sale extended ll August 31, 2020, and a one- me restructuring of
which will help your Company raise liquidity in the current loans has also been allowed by the RBI, the deteriora on in
tough economic environment. Your Company will thus look to repayment capabili es of borrowers will not transpire
mone ze its stake in the Bank in the ensuing year. immediately into delinquencies in the por olio. However,
your Company decided to take an extremely conserva ve and
prudent approach towards provisioning in order to
Rewarding Shareholders strengthen the balance sheet to effec vely tackle any and all
Our shareholders have been our steadfast allies at every step poten al future con ngencies. The Company has beefed up
of our journey and in keeping with our philosophy of its provisions buffer to ₹3,741 Crores, represen ng 5.1% of its
rewarding them for their loyalty and support, the Company, loan book and 218% of its GNPAs for naviga ng through
during FY 2019-20 made a dividend pay-out of ₹31/- per COVID-19 and a er COVID-19 periods.
equity share [with a total ou low of ₹1,590 Crores, including
Corporate Dividend Tax]. On account of the ght liquidity To conclude, while these are challenging mes, I would like to
condi ons for the sector and in view of the business re-emphasize that we remain focused on crea ng a stable and
disrup on due to COVID-19, your Company in the last quarter sustainable business that creates value for all its stakeholders.
of the year decided to briefly pause on its dividend payment We will de through these unprecedented mes by
policy for a few quarters to conserve cash and capital and put con nuing to diligently follow our principles of maintaining
it back to use in the Company. However, let me assure you that healthy liquidity and capital and ensuring proper asset liability
our dividend payment policy con nues to remain an integral management. A glimpse of our performance during any of the
part of our business strategy and we intend to resume the liquidity crises of the past decade will tell you that we have
dividend pay-outs within Fiscal 2021 itself. always emerged a stronger and more resilient player a er the
crisis. And this me will be no different!
Tackling COVID-19 I would like to extend my sincere thanks and apprecia on to

In the current difficult mes where businesses have been team Indiabulls, our customers, lenders, investors, regulators
affected due to the pandemic and consequent lockdowns, and other stakeholders, for suppor ng us in our long-term
which will most definitely have an adverse effect on the top growth journey.
line and the bo om line, every organiza on has to adapt to
the new reali es and ra onalize costs. Your Company has
looked to achieve opera ng expense ra onaliza on through Gagan Banga
cost op miza on across all expense overheads. The senior Vice Chairman, MD & CEO
management has taken the lead in reducing opera ng
expense by taking voluntary salary cuts. The total monthly
opera ng expenses of your Company have been reduced from
an average of ₹70 Crores per month in FY 2019-20 to under ₹
40 Crores per month in FY 2020-21. With the excep on of a
few strategic posi ons, all incremental and replacement
hiring has been frozen ll September 2020. Rents of current
branches have been renego ated and all branch expansion
24 |
BOARD’S REPORT
Dear Shareholders,
Your Directors are pleased to present the Fifteenth Annual Report of the Company along with the audited statement of accounts for the
financial year ended March 31, 2020.
The financial year 2019-20 saw the COVID-19 pandemic further add to the economic headwinds that the Indian economy has been
facing. The pandemic is expected to substantially impact domestic and global growth, and worsen geopolitical uncertainties.
Through financial year 2019-20, the Company continued to rationalize its balance sheet following the difficult liquidity scenarios that the
NBFC/HFC sector has been facing since September 2018, following the default by the infrastructure-lending focused NBFC IL&FS. The
Company focused on managing liquidity and ALM, and conserving capital.
Financial Highlights (Standalone)
The financial highlights of the Company, for the financial year ended March 31, 2020, are as under:
Particulars Year ended March Year ended March

31,2020 (IndAS) 31, 2019 (IndAS)
(₹ in Crore) (₹ in Crore)
Profit before Depreciation, amortization and impairment expense 2,644.52 5,184.59
Less: Depreciation, amortization and impairment expense 97.80 36.97
Profit before Tax 2,546.72 5,147.62
Less: Total Tax expense 386.81 1,418.36
Profit for the Year 2,159.91 3,729.26
Add: brought forward balance 525.63 442.80
Amount available for appropriation 2,685.54 4,172.06
Appropriations:
Interim Dividend paid on Equity Shares (₹ 31.00 Per Share (Previous Year 40.00 Per Share)) 1,325.31 1,707.39
Corporate Dividend Tax on Interim Dividend paid on Equity Shares 269.64 350.96
Transferred to Reserve III (Reserve U/s 36(1)(viii), Considered as eligible transfer to Special 220.00 387.00
Reserve U/s29C of the National Housing Bank Act, 1987)
Transferred to Reserve I (Special Reserve U/s 29C of the National Housing Bank Act, 1987) 211.98 358.85
Transferred to Additional Reserve (U/s 29C of the National Housing Bank Act, 1987) - 300.00
Transferred to General Reserve 150.00 210.00
Transferred to Debenture Redemption Reserve 139.47 332.23
Balance of Profit Carried Forward 369.14 525.63
KEY FINANCIAL HIGHLIGHTS: FY19-20 (Consolidated)
Particulars FY 19-20 (IndAS) FY 18-19 (IndAS)

Total Revenues (₹ Crores) 13,223.2 17,027.0
NII (₹ Crores) 4,711.3 7,301.5
PAT (₹ Crores) 2,199.8 4,090.5
EPS (₹) 51.70 95.83
CRAR% (Standalone) (IGAAP) 22.82 20.83
| 25
FINANCIAL AND OPERATIONAL HIGHLIGHTS funding through commercial papers. As at March 31, 2020, the
Business Update Company’s consolidated outstanding borrowings, from debentures
and securities, stood at ₹ 37,304 Crores vis-à-vis ₹ 54,069 Crores
• In FY 2019-20, the Company closed the year with a balance as at March 31, 2019. The Company’s secured NCDs have been
sheet size of ₹ 102,872 Crores and total loan assets of ₹ listed on the Wholesale Debt Market segment of NSE/BSE and
93,021 Crores. have been assigned ‘AA’ rating from CRISIL, ICRA and CARE; and
• Total sold down loan assets stood at ₹ 19,956 Crores at the ‘AA+’ by Brickwork Ratings.
end of FY 2019-20. As at March 31, 2020, the Company’s outstanding subordinated
• The Profit after Tax of the Company for the Financial Year debt and perpetual debt stood at ₹ 4,587 Crores and ₹ 100 Crores
2019-20 stood at ₹ 2,200 Crores. respectively. The debt is subordinate to present and future senior
indebtedness of the Company and has been assigned the AA rating
• As at end of FY2019-20, the Total Capital Adequacy for the by CRISIL, ICRA, CARE and AA+ by Brickwork Ratings. Based on the
Company stood at 22.82% with a Tier 1 of 15.05% against balance term to maturity, as at March 31, 2020, ₹ 4,048 Crores of
regulatory requirement of 13% and 10% respectively. the book value of subordinated and perpetual debt is considered
Liquidity Management as Tier II, under the guidelines issues by the Reserve Bank of India
(RBI) and National Housing Bank (NHB), for the purpose of capital
• The NBFC/HFC sector has been facing acute stress since adequacy computation. There are no NCDs which have not been
September, 2018, battling through liquidity squeeze and claimed by the investors or not paid by the Company after the date
a crisis of confidence following the IL&FS default. The on which the NCD became due for redemption.
year ended with the situation further exacerbated due to
the COVID-19 pandemic as nationwide lockdowns were Regulatory Guidelines / Amendments
imposed to combat the situation leading to complete halt
During the year, the National Housing Bank [NHB] amended the
in economic activity.
rules with respect to capital adequacy and leverage for Housing
• Historically, as a prudent liquidity strategy, the Company Finance Companies [HFCs]. The minimum capital adequacy
has always maintained adequate cash and investments to requirement has been increased from the earlier 12% to 13%, 14%
suffice near- to mid-term debt repayment. and 15% for March 2020, March 2021 and March 2022 respectively
and the minimum Tier I requirement has been increased from 6%
• In line with the Company’s liquidity framework, the
earlier to 10% from March 2020 onwards. The total debt to Net
Company had cash and investments of ₹ 13,410 Crores
Owned Funds [NOF] is now required to be capped at 14 times, 13
as at March 31, 2020, which is 18.4% of its loan book.
times and 12 times for March 2020, March 2021 and March 2022
The Company had no reliance on commercial papers. The
respectively from the earlier cap of 16 times.
Company’s liabilities have elongated, and ample liquidity
has ensured a well-matched ALM. In August 2019, the Reserve Bank of India [RBI] took over
• The Company is moderately levered with Net Gearing as at the powers to regulate the HFCs from the NHB. However, the
March 31, 2020 at 4.0x. supervision of HFCs is still under NHB. In accordance with this,
the Company is in compliance with all regulations pertaining to
• Among its lenders, the Company now counts 597 strong Accounting Standards, Prudential norms for asset classification,
relationships: 18 PSUs, 16 Private and Foreign banks income recognition, provisioning, capital adequacy and credit
and 563 Mutual Funds, Provident Funds, Pension Funds, ratings.
Insurance Companies and Corporates.
Risk Management Framework
Stable Asset Quality
As a housing finance company, the Company is exposed to various
• Given the macroeconomic uncertainties due to COVID-19, risks like credit risk, market risk (interest rate and currency
the Company adopted a conservative & prudent approach risk), liquidity risk and operational risk (technology, employee,
to provisioning. Total provisions as on March 31, 2020 stood transaction and reputation risk). To identify and mitigate these
at ₹ 3,741 Crores, representing 5.1% of loan book and 218% risks the Company has an effective Risk Management Control
of Gross non-performing loans as of March 31, 2020. Framework that has been developed encompassing all the above
• Gross non-performing loans as of March 31, 2020 amounted areas. The Company has a Risk Management Committee (RMC)
to ₹ 1,712 Crores, equivalent to 1.84% of the portfolio. in place that comprises of its directors and members of its senior
management team, who have rich experience in the industry in
• Net non-performing loans as at March 31, 2020 amounted various domains. The RMC met multiple times during the year
to ₹ 1,155 Crores, equivalent to 1.24% of the portfolio. and kept an active watch on the emergent risks the Company was
Bank Borrowings exposed to. The Company has a robust mechanism to ensure an
ongoing review of systems, policies, processes and procedures
As on March 31, 2020, the Company’s outstanding bank loans to contain and mitigate risks that arise from time to time. The
stood at ₹ 33,570 Crores vis-à-vis ₹ 46,100 Crores as on March Company also has a system for evaluating Grievance Redressal
31, 2019. Mechanism and undertaking complete Root Cause Analysis (RCA)
Debentures and Securities to ensure recurring grievances are avoided in future leading to
improved customer service standards. Continuous evaluation
Debentures and securities form 47% of the Company’s borrowings of existing controls and requisite improvement/ strengthening
as at the end of the fiscal year. The Company has no reliance on based on the assessment is carried out to contain these risks. The
26 |
Company encourages sound risk management culture within the and Protection Fund Authority (Accounting, Audit, Transfer
organization and Refund) Second Amendment Rules, 2017 which have been
notified by MCA on February 28, 2017 and October 13, 2017
Codes and Standards
respectively (“the Amended Rules”), the Company has till date
The Company adheres to the Fair Practices Code (FPC) transferred 18,005 equity shares in respect of which dividend has
recommended by the regulator, the National Housing Bank not been received or claimed for seven consecutive years from
(NHB) as well as the RBI, to promote good and fair practices the Financial Year 2008-09 onwards to Demat Account of IEPF
by setting minimum standards in dealing with customers. The Authority, in respect of which, individual notice had also been sent
NHB has also issued comprehensive Know Your Customer (KYC) to concerned Shareholders.
Guidelines and Anti Money Laundering Standards in the context of
Further pursuant to the requirements of SEBI Circular no. SEBI/
recommendations made by the Financial Action Task Force on Anti
LAD-NRO/GN/2016-17/008 dated July 8, 2016, the Dividend
Money Laundering Standards.
Distribution Policy of the Company is available on the website
Cross Selling and Distribution of Financial Products and Services of the Company i.e. https://www.indiabullshomeloans.
com/uploads/downloads/ihfl-dividend-distribution-poli
The Company also has a state-of-the-art Customer Care set cy-0436865001502456462-0046016001552484803.pdf.
up which helps speedy resolution of customer queries and to
promptly attend to any loan requirements. Survey calling, where DIRECTORS AND KEY MANAGERIAL PERSONNEL
feedback is taken from existing and new customers, also helps in
Effective From August 12, 2020, Mr. Sameer Gehlaut has
continuous process improvement and in the generation of new
relinquished the office of Executive Chairman of the Company
leads. Continuing digitization of workflow has integrated different
and has been re-designated as Non-Executive Non-Independent
stages of loan application enabling quicker but more thorough
Director of the Company. In his place, the Board has unanimously
underwriting.
appointed Mr. Subhash Sheoratan Mundra, formerly the Deputy
Training and Human Resource Management Governor of Reserve Bank of India and an Independent Director,
on the Board of the Company, as Non-Executive Chairman of the
Learning and Development is encouraged by way of training. The Company.
trainings focus on a variety of aspects ranging from operational
efficiency, customer satisfaction, credit risk analysis, etc. The During the financial year 2019-20, the members of the Company
trainings have been conducted for 5,111 employees covering in their fourteenth Annual General Meeting (“AGM”) held on
various aspects such as customer relationship management, credit August 28, 2019 had approved the appointment of Mr. Satish
risk analysis, operational efficiency, fraud prevention and others. Chand Mathur (DIN: 03641285) (Ex-DGP of Maharashtra), as Non-
Executive Independent Director of the Company, for a period of
DIVIDEND three years w.e.f. March 8, 2019. Further, on completion of a tenure
The Company has consistently worked towards shareholders of five years, Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892),
wealth maximization. With regard to this, the Company has ceased to be the Independent Director of the Company w.e.f.
declared four interim dividends aggregate amounting to ₹ 31/- October 26, 2019. The Board places on record its appreciation for
per equity share having face value ₹ 2/- each (₹ 10/-in 1st quarter, the contributions made by him during his tenure on the Board of
₹ 8/- in 2nd quarter, ₹ 7/- in 3rd quarter and ₹ 6/- in 4th quarter) the Company.
for the financial year 2019- 20 and total outflow amounting to ₹ In accordance with the provisions of Section 152 of the Companies
1,589.9 Crores (inclusive of Corporate Dividend Tax). Act, 2013 (“Act”) and in terms of the Memorandum and Articles
During the year, the unclaimed dividend of ₹ 0.68 crore pertaining of Association (MOA) of the Company, Mr. Ajit Kumar Mittal (DIN:
to the Financial Year 2011-12 and 2012-13, got transferred to 02698115) and Mr. Ashwini Omprakash Kumar (DIN: 03341114),
Investor Education and Protection Fund after giving due notice to Whole-time Directors of the Company, liable to retire by rotation
the members. at the ensuing Annual General Meeting of the Company and being
eligible, offer themselves for reappointment.
Further, the Company has transferred 3,329 equity shares
pertaining to the Financial Year 2011-12 and 2012-13 in respect During the current financial year, Mr. Achuthan Siddharth (DIN:
of which dividend has not been received or claimed for seven 00016278), has been appointed as Non-Executive Independent
consecutive years to Demat Account of IEPF Authority, in respect Director (Additional Director) of the Company, for a period of three
of which, individual notice had also been sent to concerned years w.e.f. July 3, 2020. Mr. Achuthan Siddharth, presently being
Shareholders. Additional Director, holds office as such upto the date of ensuing
Annual General Meeting. The Board recommends his appointment
Those members who have not so far claimed their dividend for as Non-Executive Independent Director, for a period of three years
the subsequent financial years are also advised to claim it from w.e.f. July 3, 2020, not liable to retire by rotation, at the ensuing
the Company or KFin Technologies Private Limited (Formerly Annual General Meeting of the Company.
known as Karvy Fintech Private Limited). Further, in compliance
with the requirements, in terms of the notification issued by All the present Independent Directors of the Company have
the Ministry of Corporate Affairs (MCA) regarding the “Investor given declaration that they meet the criteria of Independence
Education and Protection Fund Authority (Accounting, Audit, laid down under Section 149(6) of the Act and under Regulation
Transfer and Refund) Rules, 2016” (“the Rules”) which have come 16(a)(b) of SEBI (Listing Obligations and Disclosure Requirements)
into force from September 7, 2016 and The Investor Education Regulations, 2015 (SEBI LODR). The brief resume of the Directors
and Protection Fund Authority (Accounting, Audit, Transfer and proposed to be appointed/ reappointed, nature of their expertise
Refund) Amendment Rules, 2017 and the Investor Education in specific functional areas, terms of appointment and names of
| 27
companies in which they hold directorships and memberships/ nominal amount of US$ 350 million under the updated
chairmanships of Board Committees, are provided in the Notice Secured Euro Medium Term Note Programme of the
convening the Fifteenth Annual General Meeting of the Company. Company, through the relevant common depositary. The
said Notes are listed on Singapore Exchange Securities
SHARE CAPITAL / ESOP SCHEMES
Trading Limited, Singapore (SGX).
The paid up equity share capital of the Company as on March 31,
(c) Details of NCDs which have not been claimed by the
2020 and as on the date of this Report stood at ₹ 855,148,182/-
Investors
comprising of 427,574,091 equity shares of ₹ 2/- each.
There are no NCDs which have not been claimed by the
Presently, stock options granted to the employees operate under
Investors or not paid by the Company after the date on
the schemes namely; “IBHFL-IBFSL Employees Stock Option Plan
which these NCDs became due for redemption.
– 2006”, “IBHFL-IBFSL Employees Stock Option Plan II – 2006”,
“IBHFL-IBFSL Employees Stock Option – 2008” and “Indiabulls PUBLIC DEPOSITS
Housing Finance Limited Employees Stock Option Scheme-2013”
(hereinafter individually and/or collectively referred to as the During the year under review, the Company has not accepted any
“existing Scheme(s)”). deposits from the public, falling within the ambit of Chapter V
of the Companies Act, 2013 and the Companies (Acceptance of
Further pursuant to and in terms of shareholders authorization Deposits) Rules, 2014.
dated December 23, 2019, the Company in accordance with
Securities and Exchange Board of India (Share Based Employee LISTING WITH STOCK EXCHANGES
Benefits) Regulations, 2014, as amended from time to time The Equity Shares (ISIN INE148I01020) of the Company continue
(hereinafter referred to as “SBEB Regulations”) has implemented to remain listed at BSE Limited (“BSE”) and National Stock
Employees Stock Option Scheme- 2019 (hereinafter individually Exchange of India Limited (“NSE”). The listing fees payable to
and/or collectively referred to as the “Scheme”) inter-alia both the exchanges for the financial year 2020-21 have been paid.
including ‘to transfer and/or offer and/or grant employee stock The GDRs issued by the Company continue to remain listed on
options (“ESOPs”) and/ or its fully paid-up equity shares of face Luxembourg Stock Exchange. The Secured Synthetic INR Notes are
value of ` 2 each (“Shares”) and/or stock appreciation rights listed on SGX. The NCDs issued under public issue and on Private
(“SARs” as defined in SBEB Regulations). In line with the SBEB Placement basis are listed on Debt/WDM segment of NSE and BSE.
Regulations, the Company has created an employee’s welfare
trust titled “Indiabulls Housing Finance Limited – Employees INFORMATION PURSUANT TO SECTION 134 AND SECTION 197
Welfare Trust” (the “Trust”) to efficiently manage the Scheme and OF THE COMPANIES ACT, 2013 READ WITH THE RELEVANT RULES
to acquire, purchase, hold and deal in fully paid-up equity shares AND SEBI (LODR) REGULATIONS, 2015
of the Company from the secondary market, for the purpose of The information required to be disclosed pursuant to Section 134
administration and implementation of the Scheme, as may be and Section 197 of the Companies Act, 2013 read with the relevant
permissible under the SBEB Regulations. ESOPs/ Shares/ SARs rules (to the extent applicable) and SEBI LODR, not elsewhere
granted under the Scheme would be within the total number of mentioned in this Report, are given in “Annexure A” forming part
options that may lapse under the existing Scheme(s), according to of this Report.
terms of the existing Scheme(s). Since shares granted under the
existing Scheme(s), on account of exercise of options, will be out AUDITORS
of those purchased by the Trust from the secondary market, there
(A) Statutory Auditors
will be no dilution in shareholding.
M/s. S.R. Batliboi & Co. LLP, Chartered Accountants (ICAI
The disclosures required to be made under Securities and Exchange
Registration No.: 301003E/E300005) (an Indian Firm of
Board of India (Share Based Employee Benefits) Regulation, 2014
Ernst & Young), were appointed as the Statutory Auditors of
and the Companies Act, 2013 read with Rule 12 of the Companies
the Company at the Twelfth Annual General Meeting of the
(Share Capital and Debentures) Rules, 2014, in respect of all
Company held on 8th September, 2017, for a period of five
existing ESOP Schemes of the Company have been placed on the
years i.e. until the conclusion of the Seventeenth Annual
website of the Company https://www.indiabullshomeloans.com/
General Meeting of the Company.
uploads/downloads/IHFL_Disclosure_Regulation_14_of_SEBI_
(Share_Based_Employee_Benefits)Regulations_2020.pdf Management response on the qualifications as mentioned
in the Auditor’s report on consolidated & standalone
NON-CONVERTIBLE DEBENTURES (NCDs)
Financial Statements as at March 31, 2020, of the Company,
(a) Issuance of Secured and Unsecured NCDs, by way of forming part of this Annual Report are as under:
Private Placement basis
(a) On Consolidated Financial Statement
During the FY 2019-20, the Company has successfully raised,
The outbreak of COVID–19 virus continues to spread
by way of private placement, ₹ 120 Crores of Secured NCDs
across the globe including India, resulting into a
having a face value of ₹ 1,000,000 each. The said NCDs are
significant decline and volatility in financial markets
listed on WDM segment of BSE Limited (BSE) and National
and a significant decrease in global and local India’s
Stock Exchange of India Limited (NSE).
economic activities. The Government of India
(b) Issuance of Secured Euro Medium Term Note Programme announced a strict 40-day nation-wide lockdown
During the current Financial Year, i.e. on May 28, 2019, the to contain the spread of the virus till May 3, 2020,
Company has successfully raised, Notes for an aggregate which was further extended till June 08, 2020. This
28 |
has led to significant disruptions and dislocations have been higher by ₹ 4.33 Crores at ₹ 2,204.13
for individuals and businesses. The recent directions Crores instead of the reported number of ₹ 2,199.80
from Government allows for calibrated and gradual Crores. This is as per the Company’s filing made with
withdrawal of lockdown and partial resumption of the Securities and Exchange Board of India [SEBI].
selected economic activities. The extent to which
To counter any adverse impact of COVID-19 in the
the COVID 19 pandemic will impact the Company’s
future and other contingencies, at a consolidated
business is dependent on several factors including,
level, the Company has built a robust, conservative
but not limited to, pace of easing of the lockdown
total provisioning buffer of ₹ 3,741 Crores.
restrictions.
During the quarter, in respect of Oaknorth Holdings (b) On Standalone Financial Statement
Limited (“Oaknorth” or “investee Company”), the The outbreak of COVID–19 virus continues to spread
Company has lost significant influence due to a across the globe including India, resulting into a
reduction of its effective holding in the investee significant decline and volatility in financial markets
company, which is considered a deemed disposal of and a significant decrease in global and local India’s
the Company’s investment in associate as per Ind AS economic activities. The Government of India
28 “Investments in Associates and Joint Ventures” announced a strict 40-day nation-wide lockdown
(Ind AS 28). ₹ 1,802 Crores of gain (net of tax) on to contain the spread of the virus till May 3, 2020,
deemed disposal of the Company’s investment in which was further extended till June 08, 2020. This
associate arising due to a reduction of its effective has led to significant disruptions and dislocations
holding in the associate [OakNorth Holdings Limited] for individuals and businesses. The recent directions
and consequent loss of significant influence has from Government allows for calibrated and gradual
been recorded as Other Comprehensive Income. withdrawal of lockdown and partial resumption of
The reason for the qualification is that this gain on selected economic activities. The extent to which
deemed disposal as per Ind AS 28 i.e., difference the COVID 19 pandemic will impact the Company’s
between the fair value on the date of cessation of business is dependent on several factors including,
the associate and carrying value of the associate but not limited to, pace of easing of the lockdown
should have been recognized in the Statement of restrictions.
Profit and Loss, has instead been recorded in Other
Comprehensive Income. This was done to harmonize The Company’s total amount of impairment of
the accounting with the recording of impairment of financial instruments reflects among other things,
financial instruments in the Other Comprehensive an increased risk of deterioration in macro-economic
income in the standalone financial statements of factors and the impact on the Company’s borrowers
the Company, as in the past, in the standalone caused by the COVID-19 pandemic. Accordingly,
financial statements, the Company had recorded fair during the year ended March 31, 2020 the Company
value gains and realised gains on its investment in has debited an amount of ₹ 1,798 Crores on account
OakNorth Holdings limited in Other Comprehensive of impairment on financial instruments to Other
Income. Comprehensive Income, which as per Ind AS should
have been debited to the Statement of Profit and
The Company’s total amount of impairment of Loss and is the reason for the qualification. This was
financial instruments reflects among other things, done to harmonize the accounting with the gains
an increased risk of deterioration in macroeconomic recorded on deemed disposal of OakNorth Holdings
factors and the impact on the Company’s borrowers Limited (refer note 8 of Consolidated Financial
caused by the COVID-19 pandemic. Accordingly, Results). In the past, the Company had recorded fair
during the year ended March 31, 2020 the Company value gains and realised gains on its investment in
has debited an amount of ₹ 1,798 Crores on account OakNorth Holdings limited in Other Comprehensive
of impairment on financial instruments to Other Income.
Comprehensive Income, which as per Ind AS should
have been debited to the Statement of Profit and To counter any adverse impact of COVID-19 in the
Loss and is the reason for the qualification. This was future, the Company has built a robust, conservative
done to harmonize the accounting with the gains total provisioning buffer of ₹ 3,473 Crores.
recorded on deemed disposal of OakNorth Holdings Furthermore, no frauds have been reported by the
Limited. In the past, the Company had recorded fair Auditors of the Company in terms of Section 143(12)
value gains and realised gains on its investment in of the Companies Act, 2013.
OakNorth Holdings limited in Other Comprehensive
Income in the standalone financial statements. (B) Secretarial Auditors & Secretarial Audit Report
If the Company, in accordance with Ind AS, had Pursuant to the provisions of Section 204 of the Act
recognized through the Statement of Profit and Loss, read with the rules made thereunder, the Company has
both, the gain of ₹ 1,802 Crores on deemed disposal appointed M/s Neelam Gupta & Associates, a firm of
of its holding in OakNorth Holdings Limited, and also Company Secretaries in practice, as its Secretarial Auditors,
the impairment on financial instruments of ₹ 1,798 to conduct the secretarial audit of the Company, for the
Crores, the Company’s Net Profit after Tax would financial year 2019-20. The Company has provided all
| 29
assistance, facilities, documents, records and clarifications c) that proper and sufficient care has been taken for the
etc. to the Secretarial Auditors for the conduct of their maintenance of adequate accounting records in accordance
audit. The Report of Secretarial Auditors for the FY 2019-20, with the provisions of the Companies Act, 2013, for
is annexed as “Annexure 1”, forming part of this Report. The safeguarding the assets of the Company and for preventing
Secretarial Audit Report does not contain any qualification, and detecting fraud and other irregularities;
reservation or adverse remark.
d) that the annual financial statements have been prepared on
The Secretarial Compliance Report as prescribed by SEBI is a going concern basis;
annexed as “Annexure 2”, forming part of this Report.
e) that proper internal financial controls were in place and that
(C) Cost Records such financial controls were adequate and were operating
effectively; and
The Company is not required to prepare and maintain cost
records pursuant to Section 148(1) of the Companies Act, f) that systems to ensure compliance with the provisions of
2013. all applicable laws were in place and were adequate and
operating effectively.
CORPORATE SOCIAL RESPONSIBILITY
GREEN INITIATIVES
As part of its initiatives under “Corporate Social Responsibility
(CSR)”, the Company has undertaken projects in the areas of Health, The Company’s Environmental Management System (EMS) focuses
Education, Sanitation, Rural Development, Renewal Energy, Safe on assessing the environmental cost of the Company’s services
Drinking Water and Flora & Fauna, as per its CSR Policy (available and activities, and seeks to reduce or eliminate the negative
on your Company’s website https://www.indiabullshomeloans. impact and increase their positive effects.
com/csr-policy and the details are contained in the Annual Report
The ISO 14001:2015 specifies the requirements for EMS such
on CSR Activities given in “Annexure 3”, forming part of this
that the negative environmental impact is minimized and overall
Report. These projects are in accordance with Schedule VII of the
environmental performance improves. ISO 14001 is a systematic
Companies Act, 2013 read with the relevant rules.
framework that checks adherence to environmental performance
MANAGEMENT DISCUSSION AND ANALYSIS REPORT standards and also seeks to continuously improve it.
Pursuant to Regulation 34 of the SEBI LODR, Management’s Environmental sustainability is important to the Company and
Discussion and Analysis Report, for the year under review, is is one of the reasons behind the Company’s push to digitize its
presented in a separate section forming part of this Annual Report. processes. Amongst its peers, the Company has taken the lead
in introducing an end-to-end online home loan application and
CORPORATE GOVERNANCE REPORT
fulfillment platform, doing away with the traditional pen and paper
Pursuant to Regulation 34 of the SEBI LODR, Corporate Governance process which also involved physical transfer of loan application
Practices followed by the Company, together with a certificate files. The ISO 14001:2015 certification helps the Company
from a practicing Company Secretary confirming compliance, is document its process from an environmental perspective and
presented in a separate section forming part of this Annual Report. importantly, gives it a means to measure and minimize the
environmental impact of its operations.
BUSINESS RESPONSIBILITY REPORT
Pursuant to the guidelines and notification issued by the
Pursuant to Regulation 34 of the SEBI LODR, Business Responsibility Ministry of Home Affairs, Government of India and in light of
Report (BRR) is presented in a separate section forming part of this the MCA Circulars and pursuant to applicable provisions of the
Annual Report. Companies Act and rules made thereunder and SEBI LODR and
DIRECTORS’ RESPONSIBILITY STATEMENT the MCA/SEBI Circulars, the AGM of the Company is being held
through Video Conferencing (“VC”) / Other Audio Visual Means
To the best of their knowledge and belief and according to the (“OAVM”), without the physical presence of the Members at a
information and explanations obtained by them, your Directors common venue. The proceedings of the AGM shall be deemed
make the following statement in terms of Section 134 of the to be conducted at the Registered Office of the Company which
Companies Act, 2013: shall be the deemed venue of the AGM. Electronic copies of
a) that in the preparation of the annual financial statements for the Annual Report for Financial year 2019- 20 and Notice of the
the year ended March 31, 2020, the applicable accounting Fifteenth AGM are sent to all the members whose email addresses
standards had been followed along with proper explanation are registered with the Company / Depository Participant(s). The
relating to material departures, if any; Members who have not received the said Annual Report and
Notice may download the same from the Company’s website at
b) that such accounting policies as mentioned in the Notes to https://www.indiabullshomeloans.com/ and on the websites of
the Financial Statements have been selected and applied the Stock Exchanges i.e. BSE Limited and National Stock Exchange
consistently and judgments and estimates have been made of India Limited at www.bseindia.com and www.nseindia.com/
that are reasonable and prudent so as to give a true and fair respectively.
view of the state of affairs of the Company, as at March 31,
2020 and the profit and loss of the Company for the year The Company is providing e-voting facility to all members to enable
ended on that date; them to cast their votes electronically on all resolutions set forth
in the Notice of the Fifteenth AGM. This is pursuant to section
30 |
108 of the Companies Act, 2013 and Rule 20 of the Companies improvement in all functional areas and the efficient utilization
(Management and Administration) Rules, 2014 as substituted by of all its resources for sustainable and profitable growth. Your
Companies (Management and Administration) Amendment Rules, Directors wish to place on record their appreciation of the
2015 and Regulation 44 of the SEBI LODR. The instructions for contributions made and committed services rendered by the
remote e-voting are provided in the Notice of Fifteenth AGM. The employees of the Company at various levels. Your Directors also
members may also cast their votes during the AGM. wish to express their gratitude for the continuous assistance and
support received from the investors, clients, bankers, regulatory
ACKNOWLEDGEMENT
and government authorities, during the year.
Your Company has been able to operate efficiently because of the
culture of professionalism, creativity, integrity and continuous
For Indiabulls Housing Finance Limited
Sd/- Sd/-
Place: Mumbai Gagan Banga Ajit Kumar Mittal
Date: August 12, 2020 Vice-Chairman,Managing Director & CEO Executive Director
(DIN: 00010894) (DIN: 02698115)
| 31
Annexure – A
Annexure forming part of the

Boards’ Report
EXTRACT OF ANNUAL RETURN judgment, safeguarding the interest of the Company and its
minority shareholders and implementation of the suggestions
The details forming part of extract of Annual Return, for the
offered by Directors either individually or collectively during
financial year ended March 31, 2020, pursuant to Section 92(3)
different board/committee meetings.
and 134(3) of the Companies Act, 2013 (“Act”) and rules framed
thereunder, in form MGT-9, are given in “Annexure 4” forming POLICY ON APPOINTMENT OF DIRECTORS & THEIR
part of this Report. The annual return for the financial year 2019- REMUNERATION
20 is uploaded on the website of the Company at https://www.
The Board has framed a policy for selection and appointment of
indiabullshomeloans.com/.
Directors, Senior Management and their remuneration. The brief
BOARD MEETINGS of Remuneration Policy is stated in the Corporate Governance
Report forming part of this Annual Report.
During the financial year 2019-20, 8 (Eight) Board Meetings were
convened and held. The details of such meetings are given in LOANS, GUARANTEES OR INVESTMENTS
Corporate Governance Report forming part of this Annual Report.
During the financial year 2019-20, in terms of the provisions
The intervening gap between these meetings was within the
of Section 186(1) of the Act, the Company did not make any
period prescribed under the Act. The notice and agenda including
investments through more than two layers of investment
all material information and minimum information required to
companies. Further, the Company, being a housing finance
be made available to the Board under Regulation 17 read with
company, loans given, guarantees and security provided by it,
Schedule II Part-A of the SEBI LODR, were circulated to all directors,
were not covered under the provisions of Section 186(11) of the
well within the prescribed time, before the meeting or placed at
Act. As regards investments made by the Company, the details of
the meeting. During the year under review, separate meeting of
the same are provided under note no 9 in the financial statements
the Independent Directors was held on March 20, 2020, without
of the Company for the financial year ended March 31, 2020.
the attendance of Non- Independent Directors and the members
of the Company Management. RELATED PARTY TRANSACTIONS
BOARD EVALUATION All the related party transactions, entered into by the Company,
during the financial year, were in its ordinary course of business
The Nomination and Remuneration Committee (NRC) of the
and on an arm’s length basis. There are no materially significant
Board reassessed the framework, methodology and criteria
related party transactions entered by the Company with its
for evaluating the performance of the Board as a whole,
Promoters, Key Management Personnel or other designated
including Board committee(s), as well as performance of each
persons which may have potential conflict with the interest of the
director(s)/Chairman and confirms that the existing evaluation
Company at large. None of the transactions with related parties
parameters are in compliance with the requirements as per
fall under the scope of Section 188(1) of the Act and hence the
SEBI guidance note dated January 5, 2017 on Board evaluation.
information on transactions with related parties pursuant to
The existing parameters includes effectiveness of the Board and
Section 134(3) of the Act read with rule 8(2) of the Companies
its committees, decision making process, Directors/ members
(Accounts) Rules, 2014 required to be given in the prescribed
participation, governance, independence, quality and content of
form AOC-2 are not applicable.
agenda papers, team work, frequency of meetings, discussions at
meetings, corporate culture, contribution, role of the Chairman Further, the Policy on materiality of Related Party Transactions
and management of conflict of interest. Basis these parameters, is enclosed as “Annexure 5” and is also available on the website
the NRC had reviewed at length the performance of each of the Company at https://www.indiabullshomeloans.com/
director individually and expressed satisfaction on the process of uploads/downloads/ihfl_policy-for-determining-material-
evaluation and the performance of each Director. The performance subsidiary-0856481001562586391.pdf.
evaluation of the Board as a whole and its committees namely
Audit Committee, Nomination & Remuneration Committee and INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Stakeholders Relationship Committee as well as the performance The Company has an elaborate system of internal controls
of each director individually, including the Chairman was carried commensurate with the size, scale and complexity of its
out by the entire Board of Directors. The performance evaluation operations; it also covers areas like financial reporting, fraud
of the Chairman, Vice-Chairman, Executive Directors and Non- control, compliance with applicable laws and regulations etc.
Executive Director was carried out by the Independent Directors Regular internal audits are conducted to check and to ensure
in their meeting held on March 20, 2020. The Directors expressed that responsibilities are discharged effectively. The Internal Audit
their satisfaction with the evaluation process. Department monitors and evaluates the efficacy and adequacy
Also, the Chairman of the Company, on a periodic basis, has had of internal control systems in the Company, its compliance with
one-to-one discussion with the directors for their views on the regulatory directives, efficacy of its operating systems, adherence
functioning of the Board and the Company, including discussions to the accounting procedures and policies at all branch offices of
on level of engagement and contribution, independence of the Company and its subsidiaries. Wherever required, the internal
32 |
audit efforts are supplemented by audits conducted by specialized Company has taken major initiatives for improved employee
consultants/audit firms. Based on the report of the Internal experience, by implementing innovative solutions and
Auditors, process owners undertake corrective actions, in their empowering them by providing mobile platform to manage
respective areas and thereby strengthen the controls. their work while on the go.
MATERIAL CHANGES AND COMMITMENTS The Company’s investment in technology has improved
customer services, reduced operational cost and
Apart from the information provided/disclosures made elsewhere
development of new business opportunities. No technology
in the Boards’ Report including Annexures thereof, there are no
was imported by the Company during the last three financial
material changes and commitments affecting the financial position
years including financial year 2019-20.
of the Company, occurred between the date of end of the financial
year of the Company i.e. March 31, 2020 till date of this Report. C. Foreign Exchange Earnings and Outgo
Further, no significant and material orders were passed by the During the year under review, your Company had no foreign
regulators or courts or tribunals, impacting the going concern exchange earnings. Foreign exchange outgo was ` 381.38
status and Company’s operations in future. Crores. The details of earnings and outgo are shown in the
Note No. 36 (a), of Notes to the Accounts, forming part
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
of the Standalone Financial Statements. Members are
FOREIGN EXCHANGE EARNINGS AND OUTGO
requested to refer to these Notes.
The Company being a Housing Finance Company is not required
BUSINESS RISK MANAGEMENT
to use much of energy and technology absorption, however in
compliance of Section 134(3) read with Rule - 8 of Companies Pursuant to the applicable provisions of the Companies Act, 2013
(Accounts) Rules, 2014, the necessary reporting with regard and Regulation 21 of the SEBI LODR, the Company has in place
to conservation of energy, technology absorption and foreign a Board constituted Risk Management Committee. Details of the
exchange earnings and outgo, is an under: Committee and its terms of reference are set out in the Corporate
Governance Report forming part of this report.
A. Conservation of Energy
The Company has a robust Business Risk Management framework
The Company operations do not account for substantial
to identify and evaluate business risks and opportunities. This
energy consumption. However, the Company is taking
framework seeks to create transparency, minimize adverse impact
all possible measures to conserve energy. As an ongoing
on its business objectives and enhance its competitive advantage.
process, the followings are (i) the steps taken or impact on
It defines the risk management approach across the Company and
conservation of energy; (ii) the steps taken by the company
its subsidiaries at various levels including the documentation and
for utilizing alternate sources of energy; and (iii) the capital
reporting. At present, the Company has not identified any element
investment on energy conservation equipment.
of risk which may threaten its existence.
The Company is ISO 14001:2015 certified for its
During the year, the Company has appointed Mr. Naveen Uppal,
Environmental Management Systems (EMS). The Company’s
as the Chief Risk Officer (CRO) who is inter alia responsible for
EMS measures the environmental costs of its services and
identifying, monitoring and overseeing risks, including potential
activities, and seeks to minimize the negative effects and
risks to the Company and reporting of the same to the Board.
improve the positive aspects.
Necessary measures have been put in place by the board to
Consumption of electricity and its efficient utilization is an safeguard the independence of the CRO. In accordance with the
important area of EMS and the Company has taken many norms set out by NHB, the CRO has vetted all credit products
steps to reduce its carbon footprint on this front. The offered by the Company from the perspective of inherent and
Company has been able to reduce energy consumption by control risks. The CRO did not have any reporting relationship with
using star rated appliances where possible and also through business verticals of the Company or business targets.
the replacement of CFL lights with LED lights. Monitoring
PARTICULARS OF EMPLOYEES
resource usage, improved process efficiency, reduced waste
generation and disposal costs have also supported the Pursuant to the applicable provisions of the Companies Act,
cause. 2013 read with Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, disclosures on Managerial
B. Technology Absorption
Remuneration are provided in “Annexure 6” forming part of this
The Company is investing in cutting edge technologies to Report. In terms of the provisions of Section 136(1) of the Act
upgrade its infrastructure set up and innovative technical read with the said rules, the Boards’ Report is being sent to all
solutions, thereby increasing customer delight & employee the shareholders of the Company excluding the annexure on the
efficiency. Next Generation Business Intelligence & analytics names and other particulars of employees, required in accordance
tool have been implemented to ensure that while data with Rule 5(2) of said rules, which is available for inspection by the
continues to grow, decision makers gets answers faster than members, subject to their specific written request, in advance, to
ever for timely & critical level decision making. The Company the Company Secretary of the Company. The inspection is to be
has implemented best of the breed applications to manage carried out at the Company’s Registered Office at New Delhi or at
and automate its business processes to achieve higher its Corporate Office, at Gurgaon, during business hours on working
efficiency, data integrity and data security. It has helped it days (except Saturday and Sunday) of the Company up to date of
in implementing best business practices and shorter time to ensuing Annual General Meeting.
market new schemes, products and customer services. The
| 33
FAMILIARISATION PROGRAMME FOR NON- EXECUTIVE COMMITTEES OF THE BOARD

DIRECTORS
The Company has following Board constituted committees which
Non-Executive Directors are familiarized with their roles, have been established as a part of the best corporate governance
rights and responsibilities in the Company as well as with the practices and are in compliance with the requirements of the
nature of industry and business model of the Company through relevant provisions of applicable laws and statutes.
presentations about the Company’s strategy, business model,
a) Asset Liability Management Committee
product and service offerings, customers & shareholders
profile, financial details, human resources, technology, facilities, b) Audit Committee
internal controls and risk management, their roles, rights and c) Bond Issue Committee
responsibilities in the Company. The Board is also periodically
briefed on the various changes, if any, in the regulations governing d) Compensation Committee
the conduct of non-executive directors including independent e) Corporate Social Responsibility Committee
directors. The details of the familiarization programmes have been
hosted on the website of the Company and link provided in the f) Customer Grievance Committee
Report on Corporate Governance forming part of this Report. g) Investment Committee
SUBSIDIARY & ASSOCIATES COMPANIES h) IT Strategy Committee
Pursuant to Section 129 of the Companies Act, 2013 and Indian i) Identification Committee
Accounting Standard (IND AS) - 110 on Consolidated Financial j) Internal Complaint Committee
Statements, the Company has prepared its Consolidated Financial
Statement along with all its subsidiaries, in the same form and k) Management Committee
manner, as that of the Company, which shall be laid before its l) Nomination & Remuneration Committee
ensuing Fifteen Annual General Meeting along with its Standalone
Financial Statement. The Consolidated Financial Statements of the m) Risk Management Committee
Company along with its subsidiaries, for the year ended March 31, n) Review Committee
2020, forms part of this Annual Report.
o) Reschedulement Committee
For the performance and financial position of each of the p) Reorganization Committee
subsidiaries of the Company, included in its Consolidated Financial
Statements, the Members are requested to refer to Note No. q) Stakeholders Relationship Committee
(37) (b) of the Notes to the Accounts, of Consolidated Financial r) Securities Issuance Committee
Statements of the Company .
The details with respect to composition, powers, roles, terms of
Further pursuant to the provisions of Section 136 of the Act, reference, etc. of committees constituted under the Companies
the financial statements of the Company, consolidated financial Act, 2013 and SEBI LODR are given in the Corporate Governance
statements along with relevant documents and separate audited Report forming part of this Annual Report.
accounts in respect of subsidiaries, are also available on the
website of the Company at https://www.indiabullshomeloans. SECRETARIAL STANDARDS
com/. Shareholders may write to the Company for the annual The Board of Directors state that the Company has complied with
financial statements and any further information on subsidiary the applicable Secretarial Standards (SS-1 and SS-2) respectively
companies. Further, the documents shall also be available for relating to Meetings of the Board, its Committees and the General
inspection by the shareholders at the registered office of the Meetings as issued by the Institute of Company Secretaries of
Company. India.
During the year, Indiabulls Commercial Credit Limited (ICCL) was NUMBER OF CASES FILED, IF ANY, AND THEIR DISPOSAL UNDER
material subsidiary of the Company, as per SEBI LODR. SECTION 22 OF THE SEXUAL HARASSMENT OF WOMEN AT WORK
PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company is in compliance with Regulation 24A of the SEBI
LODR. The Company’s unlisted material subsidiary ICCL undergoes The Company has zero tolerance towards sexual harassment at
Secretarial Audit. Copy of Secretarial Audit Report of ICCL is the workplace and has adopted a policy on prevention, prohibition
available on the website of the Company. The Secretarial Audit and redressal of sexual harassment at workplace in line with the
report of ICCL does not contain any qualification, reservation or provisions of the Sexual Harassment of Women at Workplace
adverse remark. (Prevention, Prohibition and Redressal) Act, 2013 and the Rules
thereunder. During the financial year 2019-20, no cases of sexual
NAMES OF THE COMPANIES WHICH HAVE BECOME OR CEASED harassment were reported.
TO BE SUBSIDIARIES OR ASSOCIATE COMPANIES
The Company has complied with provisions relating to the
During the period under review, no company has become or ceased constitution of Internal Complaints Committee (ICC) under
to be subsidiary of the Company. OakNorth Holdings Limited has the Sexual Harassment of Women at Work place (Prevention,
ceased to be an associate of the Company w.e.f. March 31, 2020. Prohibition and Redressal) Act, 2013. The Internal Complaints
Further, Indiabulls Asset Management Mauritius is currently under Committee (ICC) has been set up to redress complaints received, if
liquidation. any, regarding sexual harassment.
34 |
VIGIL MECHANISM fraud, bribery, corruption, employee misconduct, illegality,

misappropriation of Company’s funds/ assets etc. A whistle-
The Company is committed to adhere to the highest standards
blowing or reporting mechanism, as set out in the Policy, invites
of ethical, moral and legal conduct of its business operations.
all employees to act responsibly to uphold the reputation of the
To maintain these standards, the Company has implemented
Company and its subsidiaries.
the Whistle Blower Policy (the Policy), to provide an avenue for
employees to report matters without the risk of subsequent The Policy aims to ensure that serious concerns are properly
victimization, discrimination or disadvantage. The Policy applies raised and addressed and are recognized as an enabling factor
to all employees working for the Company and its subsidiaries. in administering good governance practices. The details of the
Pursuant to the Policy, the whistle blowers can raise concerns Whistle Blower Policy are available on the website of the Company
relating to matters such as breach of Company’s Code of Conduct, at https://www.indiabullshomeloans.com/.
Sd/- Sd/-
Place: Mumbai Gagan Banga Ajit Kumar Mittal
Date: August 12, 2020 Vice-Chairman,Managing Director & CEO Executive Director
(DIN: 00010894) (DIN: 02698115)
| 35
Annexure-1
FORM NO. MR-3
Secretarial Audit Report

(For the Financial Year ended March 31, 2020)
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (d) The Securities and Exchange Board of India (Share Based
The Members Employee Benefits) Regulations, 2014;
Indiabulls Housing Finance Limited (e) The Securities and Exchange Board of India (Issue and
M -62 & 63, First Floor, Connaught Place, Listing of Debt Securities) Regulations, 2008;
New Delhi- 110001
(f) The Securities and Exchange Board of India (Registrars
We have conducted the secretarial audit of the compliance to an Issue and Share Transfer Agents) Regulations, 1993
of applicable statutory provisions and the adherence to good regarding the Companies Act and dealing with client (Not
corporate practices by Indiabulls Housing Finance Limited applicable to the Company during the Audit Period);
(hereinafter called “the Company”/ “IBHFL”). Secretarial Audit
was conducted in a manner that provided us a reasonable basis (g) The Securities and Exchange Board of India (Delisting of
for evaluating the corporate conducts/statutory compliances and Equity Shares) Regulations, 2009 (Not applicable to the
expressing our opinion thereon. Company during the Audit Period);
Based on our verification of IBHFL’s books, papers, minute books, (h) The Securities and Exchange Board of India (Buyback
forms and returns filed and other records maintained by the of Securities) Regulations, 2018 (Not applicable to the
Company and also the information provided by the Company, its Company during the Audit Period); and
officers, agents and authorized representatives during the conduct (i) The Securities and Exchange Board of India (Listing
of secretarial audit, we hereby report that in our opinion, the Obligations and Disclosure Requirements) Regulations,
Company has, during the audit period covering the Financial Year 2015.
ended on March 31, 2020, complied with the statutory provisions
listed hereunder and also that the Company has proper Board VI. The National Housing Bank Act, 1987, the Company being a
processes and compliance mechanism in place to the extent, in Housing Finance Company, is also governed by this Act.
the manner and subject to the reporting made hereinafter: We have also examined compliance with the applicable clauses
We have examined the books, papers, minute books, forms of the Secretarial Standards issued by the Institute of Company
and returns filed and other records maintained by IBHFL for Secretaries of India covered under the Companies Act, 2013;
the Financial Year ended on March 31, 2020 according to the During the period under review the Company has complied
provisions of: with the provisions of the Act, Rules, Regulations, Guidelines,
I. The Companies Act, 2013 (the Act) and the Rules made Standards, etc. stated herein above.
thereunder; We further report that:
II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and a. The Board of Directors of the Company is duly constituted
the rules made thereunder; with proper balance of Executive Directors, Non-Executive
III. The Depositories Act, 1996 and the Regulations and Bye- Director, Woman Director and Independent Directors. The
laws framed thereunder; changes in the composition of the Board of Directors that
took place during the period under review were carried out
IV. Foreign Exchange Management Act, 1999 and the rules in compliance with the applicable provisions of law.
and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External b. Adequate notice is given to all directors to schedule the
Commercial Borrowings; Board Meetings, agenda and detailed notes on agenda
were sent sufficiently in advance to the Directors, and a
V. The following Regulations and Guidelines prescribed under system exists for seeking and obtaining further information
the Securities and Exchange Board of India Act, 1992 (‘SEBI and clarifications on the agenda items before the meeting
Act’):- and for meaningful participation at the meeting.
(a) The Securities and Exchange Board of India (Substantial c. Majority decision is carried through with the consent of all
Acquisition of Shares and Takeovers) Regulations, 2011; the Directors present in the meeting and members’ views
(b) The Securities and Exchange Board of India (Prohibition of are captured and recorded as part of the minutes.
Insider Trading) Regulations, 2015; We further report that there are adequate systems and processes
(c) The Securities and Exchange Board of India (Issue of Capital in the Company commensurate with the size and operations of the
and Disclosure Requirements) Regulations, 2018; Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
36 |
We further report that during the Audit period the Company has: (iv) Secondary Acquisition of upto 1,70,00,000 equity shares
of the Company of face value of INR 2/- each through an
1. Declared and paid four Interim Dividends of ` 10/-, ` 8/-,
Employee Welfare Trust under IHFL ESBS Scheme 2019;
` 7/- and ` 6/- , aggregating to ` 31/- per equity share.
(v) Implementation of IHFL ESBS Scheme 2019 through Trust
2. Decided at the 14thAnnual General Meeting of the Company
Route;
held on August 28, 2019 to shift its Registered Office from
NCT of Delhi to state of Haryana. (vi) Provision of money by the Company for purchase of its
own shares by the Trust / Trustees under IHFL ESBS Scheme
3. Allotted 1,70,752 equity shares of ` 2/- each on June 5,
2019;
2019 upon exercise of stock options under ESOP Schemes
of the Company on cash payment. (vii) Grant of Employee Stock Options/ Shares/ Stock
Appreciation Rights to the identified employees during any
4. Issued and allotted 1200 Secured Redeemable Non-
one year, equal to or exceeding one percent of the issued
Convertible Debentures of ` 10,00,000 each aggregating `
capital of the Company.
120 Crores.
This report is to be read with our letter of even date which is
5. Approved through Postal Ballot mechanism the following:
annexed as Annexure and forms integral part of this report.
(i) Issuance of non-convertible debentures along with warrants
For Neelam Gupta and Associates
to qualified institutional buyer upto INR equivalent of USD 1
billion;
(ii) Indiabulls Housing Finance Limited - Employee Stock Sd/-
Benefit Scheme 2019 (‘IHFL ESBS Scheme 2019’) and grant (Neelam Gupta)
of Employee Stock Options/ Shares/ Stock Appreciation Practicing Company Secretary
Rights to the employees of the Company; FCS : 3135 CP : 6950
PR No. : 747/2020
(iii) Grant Employee Stock Options / Shares / Stock Appreciation
Rights to the employees of the subsidiary company(ies) UDIN : F003135B000565268
under IHFL ESBS Scheme 2019 ;
Place : New Delhi
Date : 10th August, 2020
| 37
Annexure to the Secretarial Audit Report of IBHFL for financial year ended March 31, 2020
To, 4. We have not verified the correctness and appropriateness
The Members of financial records and Books of Accounts of the Company.
Indiabulls Housing Finance Limited Our examination was limited to the verification of procedure
M -62 & 63,First Floor, Connaught Place, on test basis.
New Delhi - 110001
5. Wherever required, we have obtained the Management
Management Responsibility for Compliances representation about the compliance of laws, rules and
regulations and happening of events etc.
1. The maintenance and compliance of the provisions of
Corporate and other applicable laws, rules, regulations, 6. The compliance of the provisions of Corporate and other
secretarial standards is the responsibility of the management applicable laws, rules, regulations, standards is the
of the Company. Our responsibility is to express an opinion responsibility of management. Our examination was limited
on these secretarial records based on our audit. to the verification of procedure on test basis.
2. We have followed the audit practices and process as were 7. The Secretarial Audit report is neither an assurance as to
appropriate to obtain reasonable assurance about the the future viability of the Company nor of the efficacy or
correctness of the contents of the secretarial records. The effectiveness with which the management has conducted
verification was done on test basis to ensure that correct the affairs of the Company.
facts are reflected in secretarial records. We believe that
For Neelam Gupta and Associates
the process and practices we followed provide a reasonable
basis for our opinion.
3. The review of original registers, records and documents Sd/-
of the Company has been hampered during the audit and (Neelam Gupta)
certain audit procedures cannot be performed due to Practicing Company Secretary
government restrictions of lock down and social distancing FCS : 3135 CP : 6950
in view of COVID 19 Global pandemic. We have relied upon PR No.: 747/2020
the books, records and documents made available by the UDIN : F003135B000565268
Company to us through electronic means and in digital
format. Place : New Delhi
Date : 10th August, 2020
38 |
Annexure-2
Secretarial Compliance Report of Indiabulls Housing

Finance Limited for the year ended 31st March, 2020
We, Neelam Gupta & Associates, Company Secretaries have Sr. Compliance Requirement Deviations Observations/
examined: No. (Regulations/ circulars Remarks of the
(a) all the documents and records made available to us and / guidelines including Practicing Company
explanation provided by Indiabulls Housing Finance Limited specific clause) Secretary
(“the listed entity”), Not Applicable
(b) the filings/ submissions made by the listed entity to the (b) The listed entity has maintained proper records under
stock exchanges, the provisions of the above Regulations and circulars/
(c) website of the listed entity, guidelines issued thereunder insofar as it appears from our
examination of those records.
(d) any other document/ filing, as may be relevant, which has
been relied upon to make this certification, (c) The following are the details of actions taken against the
listed entity/ its promoters/ directors/ material subsidiaries
for the year ended 31st March, 2020 (“Review Period”) in respect either by SEBI or by Stock Exchanges (including under the
of compliance with the provisions of : Standard Operating Procedures issued by SEBI through
various circulars) under the aforesaid Acts/ Regulations and
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI
circulars/ guidelines issued thereunder:
Act”) and the Regulations, circulars, guidelines issued
thereunder; and Sr. Actions Details of Details of Observations/
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), No. Taken by violation action taken remarks of
rules made thereunder and the Regulations, circulars, E.g. fines, the Practicing
warning letter, Company
guidelines issued thereunder by the Securities and Exchange debarment, Secretary, if
Board of India (“SEBI”); etc. any.
The specific Regulations, whose provisions and the circulars/ Not Applicable
guidelines issued thereunder, have been examined, include:-
(d) The listed entity has taken the following actions to comply
(a) Securities and Exchange Board of India (Listing Obligations with the observations made in previous reports:
and Disclosure Requirements) Regulations, 2015;
Sr. Observations Observations Actions Comments
(b) Securities and Exchange Board of India (Issue of Capital and No. of the made in the taken of the
Disclosure Requirements) Regulations, 2018; Practicing secretarial by the Practicing
Company compliance listed Company
(c) Securities and Exchange Board of India (Substantial Secretary in report for entity, Secretary on
Acquisition of Shares and Takeovers) Regulations, 2011; the previous the year if any the actions
reports ended… taken by the
(d) Securities and Exchange Board of India (Share Based
listed entity
Employee Benefits) Regulations, 2014;
Not Applicable
(e) Securities and Exchange Board of India (Issue and Listing of
Debt Securities) Regulations, 2008; For Neelam Gupta & Associates
Company Secretaries
(f) Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015;
(g) Securities and Exchange Board of India (Debenture Trustee) Sd/-
Regulations, 1993 (in relation to obligations of Issuer (Neelam Gupta)
Company); and circulars/ guidelines issued thereunder; Company Secretary
and based on the above examination, I hereby report that, during FCS No.: 3135
the Review Period: C P No.: 6950
UDIN : F003135B000364540
(a) The listed entity has complied with the provisions of
the above Regulations and circulars/ guidelines issued Place: New Delhi
thereunder, except in respect of matters specified below:-
Date: June 22, 2020
| 39
Annexure-3
Annual Report on Corporate Social

Responsibility (CSR) Activities
1. A brief outline of the Company’s CSR Policy, including overview of projects or programs, proposed to be undertaken and a
reference to the web-link to the CSR Policy and projects or program.
The Company focuses its CSR efforts on areas where maximum benefit accrues to society, such as education, health, sanitation,
rural development, and environmental conservation etc. The Company also engages with stakeholders including experts, NGOs,
professional bodies / forums, and the government, and takes up such CSR activities that are important for the society at large. The
Company may also undertake such CSR projects of sudden criticality such as providing relief in areas stuck by natural disasters etc.
The Company’s CSR Policy is available at https://www.indiabullshomeloans.com/csr-policy
2. Composition of the CSR Committee
Mr. Shamsher Singh Ahlawat, Chairman (Independent Director)
Mr. Gagan Banga, Member (Vice-Chairman, Managing Director & CEO)
Mr. Ashwini Omprakash Kumar, Member (Deputy Managing Director)
3. Average Net Profit of the Company for last three financial years: ₹ 40,115,720,243/-
4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above): ₹ 802,315,000/-
5. Details of CSR spend for the financial year:
(a) Total amount spent for the financial year: ₹ 802,315,000/-
(b) Amount unspent, If any: Nil
(c) Manner in which the amount spent during the financial year is detailed below:
(Figures in ₹)
(1) (2) (3) (4) (5) (6) (7) (8)

Sr. CSR Projects or Activities Sector in which Projects or programs Amount outlay Amount spent on projects Cumulative Amount spent: Direct or
No. identified the project is (budget) or programs Sub-heads: expenditure through implementing
covered project or up to the 31st agency*
District State Direct Exp. Overheads
program– wise March 2020
On Project
or Programs
wise
1 Free Medical Clinic Health PAN India PAN India 250,000,000 32,895 - 32,895 Implementing Agency
(Indiabulls Foundation)
2 Free Mobile Medical Vans Health Mumbai Maharastra 225,000,000 - - 32,895 Implementing Agency
(Janswasthya Kalyan Vahika) (Indiabulls Foundation)
Thane
Raigad
Palghar
Nashik
3 Poshtik Ahar Nutrition Mumbai Maharastra 80,000,000 - - 32,895 Implementing Agency
Thane
Raigad
Palghar
Nashik
4 Kumud (Sanitary Napkins) Sanitation Mumbai Maharastra 20,000,000 - - 32,895 Implementing Agency
Thane
Raigad
Palghar
Nashik
40 |
(1) (2) (3) (4) (5) (6) (7) (8)

Sr. CSR Projects or Activities Sector in which Projects or programs Amount outlay Amount spent on projects Cumulative Amount spent: Direct or
No. identified the project is (budget) or programs Sub-heads: expenditure through implementing
covered project or up to the 31st agency*
District State Direct Exp. Overheads
program– wise March 2020
On Project
or Programs
wise
5 Solar Power Plants Renewable Energy PAN India PAN India 75,000,000 - - 32,895 Implementing Agency
6 Cleft & Palate Surgeries Health PAN India PAN India 45,000,000 - - 32,895 Implementing Agency
(Smile Train India) (Indiabulls Foundation)
7 Skill Development Education PAN India PAN India 30,000,000 - - 32,895 Implementing Agency
Programme (Indiabulls Foundation)
8 Construction of Toilets Sanitation PAN India PAN India 7,500,000 - - 32,895 Implementing Agency
9 Water Wheels Rural Mumbai Maharastra 25,000,000 - - 32,895 Implementing Agency
Development (Indiabulls Foundation)
Thane
& Safe Drinking
Water Raigad
Palghar
10 Rural Development (Sri Rural Port Blair Port Blair 500,000 500,000 - 532,895 Implementing Agency
Pratyaksha Charitable Trust) Development (Indiabulls Foundation)
11 Scholarships Education PAN India PAN India 30,000,000 - - 532,895 Implementing Agency
12 Construction Traffic Island Flora & Fauna Mumbai Mumbai 3,351,000 - - 532,895 Implementing Agency
Parks (Indiabulls Foundation)
13 HDFC Cancer Cure Fund Health PAN India PAN India 10,964,000 10,964,000 - 11,496,895 Direct
Total 802,315,000 11,496,895 - -
*Indiabulls Foundation is a registered Trust established by the Company along with its group companies.
6. In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any part
thereof, the Company shall provide the reasons for not spending the amount in Board’s report.
During the financial year 2019-20, the Company has contributed its CSR expenditure aggregating to, ₹ 791,351,000/- to the corpus
of Indiabulls Foundation, for undertaking CSR projects, on its behalf, and additionally directly spent ₹ 10,964,000/-; the total thus
aggregated to ₹ 802,315,000/-.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with
the CSR objectives and Policy of the Company.
The Company understands that for it to continue to prosper over the long term, the community, environment and society at
large must also develop and prosper. During the financial year 2019-20, the implementation and monitoring of CSR Policy of the
Company were environment-friendly and in compliance with the applicable laws, CSR objectives and policy of the Company.
Sd/- Sd/-
Gagan Banga Shamsher Singh Ahlawat
Place: Mumbai Member (Vice-Chairman, MD & CEO) Chairman – CSR Committee
Date: August 12, 2020 (DIN: 00010894) (DIN: 00017480)
| 41
Annexure - 4
FORM NO. MGT- 9
EXTRACT OF ANNUAL RETURN

as on financial year ended on 31.03.2020
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management & Administration) Rules, 2014.
I. REGISTRATION & OTHER DETAILS:
i CIN L65922DL2005PLC136029
ii Registration Date 10-May-2005
iii Name of the Company Indiabulls Housing Finance Limited
iv Category/Sub-category of the Company Company Limited by Shares
v Address of the Registered office & contact details M - 62 & 63 First Floor,
Connaught Place, New Delhi - 110001
Tel: (011) 30252900 Fax: (011) 30252901
vi Whether listed company Yes
vii Name, Address & contact details of Registrar & KFIN Technologies Private Limited
Transfer Agent, if any. (Unit: Indiabulls Housing Finance Limited)
Selenium Building, Tower B, Plot Nos. 31-32, Gachibowli,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad – 500 032
Tel: 040-6716 2222 - Fax: 040-23001153
E-mail: murthy.psrch@kfintech.com
II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated
Sl. Name & Description of main products/services NIC Code of the % to total turnover of
No. Product / service the company
1 Carry on the business of a Housing Finance Institution without 64920 86.56%
accepting public deposits
III PARTICULARS OF HOLDING, SUBSIDIARY & ASSOCIATE COMPANIES
Sl. Name & Address of the Company CIN/GLN Holding/ % Of Applicable

No. Subsidiary/ Shares Section
Associate Held
1. Indiabulls Insurance Advisors Limited U72200DL2002PLC114257 Subsidiary 100% Section 2(87) of
M - 62 & 63, First Floor, Connaught Place, Companies Act,
New Delhi-110001 2013
2. Indiabulls Capital Services Limited U65993DL2005PLC134948 Subsidiary 100% Section 2(87) of
New Delhi-110001 2013
3. Indiabulls Commercial Credit Limited U65923DL2006PLC150632 Subsidiary 100% Section 2(87) of
New Delhi-110001 2013
4. IBulls Sales Limited U67100DL2006PLC154666 Subsidiary 100% Section 2(87) of
New Delhi-110001 2013
5. Indiabulls Advisory Services Limited U51101DL2006PLC155168 Subsidiary 100% Section 2(87) of
M - 62 & 63, First Floor, Companies Act,
Connaught Place, New Delhi-110001 2013
42 |
Sl. Name & Address of the Company CIN/GLN Holding/ % Of Applicable

No. Subsidiary/ Shares Section
Associate Held
6. Indiabulls Collection Agency Ltd U93091DL2006PLC149380 Subsidiary 100% Section 2(87) of
7. Indiabulls Asset Holding Company Ltd U74900DL2007PLC164760 Subsidiary 100% Section 2(87) of
8. Indiabulls Asset Management Company Ltd, U65991DL2008PLC176627 Subsidiary 100% Section 2(87) of
9. Indiabulls Trustee Company Limited U65991DL2008PLC176626 Subsidiary 100% Section 2(87) of
10. Indiabulls Holdings Limited U74140DL2010PLC201275 Subsidiary 100% Section 2(87) of
M - 62 & 63 First Floor, Companies Act,
Connaught Place, New Delhi 110001 2013
11. Nilgiri Financial Consultants Limited U72200DL2005PLC143654 Subsidiary 100% Section 2(87) of
12. Indiabulls Venture Capital Management U74140DL2010PLC199673 Subsidiary 100% Section 2(87) of
Company Limited Companies Act,
M - 62 & 63, First Floor, 2013
Connaught Place, New Delhi-110001
13. OakNorth Holdings Limited* Foreign Company Associate 15.71% Section 2(6) of
(formerly known as Acorn OakNorth Companies Act,
Holdings Limited) 2013
Ordnance House, 31 Pier Road,
St Helier, Jersey, JE4 8PW
14. Indiabulls Asset Management Mauritius** Foreign Company Subsidiary 100% Section 2(87) of
c/o Citco (Mauritius) Limited Companies Act,
4th Floor, Tower A, 1 CyberCity Ebene, 2013
Mauritius
*Associate till March 30, 2020.
**Currently under liquidation.
IV SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAK UP AS % OF TOTAL EQUITY)
(i) Category-wise Shareholding
Category of Shareholders No. of Shares held at the beginning of the year (April No. of Shares held at the end of the year % change
1, 2019) (March 31, 2020) during the
year
Demat Physical Total % of Demat Physical Total % of Total
Total Shares
Shares
A. Promoters
(1) Indian
a) Individual/HUF 500,000 0 500,000 0.12 14,851,481* 0 14,851,481* 3.47 3.36
b) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00
c) State Govt. 0 0 0 0.00 0 0 0 0.00 0.00
d) Bodies Corporates 91,494,807 0 91,494,807 21.41 82,943,325 0 82,943,325 19.40 (2.01)
e) Bank/FI 0 0 0 0.00 0 0 0 0.00 0.00
f) Any other 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total: (A)(1) 91,994,807 0 91,994,807 21.52 97,794,806 0 97,794,806 22.87 1.35
| 43
Category of Shareholders No. of Shares held at the beginning of the year (April No. of Shares held at the end of the year % change
1, 2019) (March 31, 2020) during the
year
Demat Physical Total % of Demat Physical Total % of Total
Total Shares
Shares
(2) Foreign
a) NRI- Individuals 0 0 0 0.00 0 0 0 0.00 0.00
b) Other Individuals 0 0 0 0.00 0 0 0 0.00 0.00
c) Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00
d) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00
e) Any other 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total: (A)(2) 0 0 0 0.00 0 0 0 0.00 0.00
Total Shareholding of Promoter (A) = (A) 91,994,807 0 91,994,807 21.52 97,794,806 0 97,794,806 22.87 1.35
(1) + (A)(2)
B. PUBLIC SHAREHOLDING
(1) Institutions
a) Mutual Funds 9,532,887 0 9,532,887 2.23 2,632,358 0 2,632,358 0.62 (1.61)
b) Banks/FI 238,683 0 238,683 0.06 1,032,469 0 1,032,469 0.24 0.18
c) Central govt 0 0 0 0.00 0 0 0 0.00 0.00
d) State Govt. 0 0 0 0.00 0 0 0 0.00 0.00
e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
f) Insurance Companies 45,827,373 0 45,827,373 10.72 45,823,723** 0 45,823,723** 10.72 0
g) Foreign Venture Capital 0 0 0 0.00 0 0 0 0.00 0.00
Funds
h) Foreign Institutional 238,712,501 0 238,712,501 55.86 159,996,693 0 159,996,693 37.42 (18.44)
Investors/ Foreign
Portfolio Investors
Any Other
Alternate Investment Funds 35,032 0 35,032 0.01 72,600 0 72,600 0.02 0.01
Qualified Institutional Buyer 0 0 0 0.00 13,375 0 13,375 0.00 0.00
Sub-Total: (B)(1) 294,346,476 0 294,346,476 68.87 209,571,218 0 209,571,218 49.01 (19.86)
(2) Non Institutions
a) Bodies corporates
i) Indian 12,491,571 0 12,491,571 2.92 36,786,271 0 36,786,271 8.60 5.68
ii) Overseas 0 0 0 0.00 0 0 0 0.00 0.00
b) Individuals
i) Individual 14,050,280 7,716 14,057,996 3.29 51,060,991 7,796 51,068,787 11.94 8.65
shareholders holding
nominal share capital
upto ₹ 1 lakhs
ii) Individuals 7,726,977 0 7,726,977 1.81 8,359,575 0 8,359,575 1.96 0.15
shareholders holding
nominal share
capital in excess of
₹ 1 lakhs
c) Others (specify)
i) Non-Resident Indians 637,606 0 637,606 0.15 1,931,458 0 1,931,458 0.45 0.30
ii) Clearing Members 3,499,886 0 3,499,886 0.82 9,632,839 0 9,632,839 2.25 1.43
iii) Overseas Corporate 0 0 0 0.00 0 0 0 0.00 0.00
Bodies
iv) Foreign Bodies – DR 20,819 0 20,819 0.00 428 0 428 0.00 0.00
v) IEPF 14,676 0 14,676 0.00 18,005 0 18,005 0.00 0.00
vi) NBFCs Registered with RBI 18,673 0 18,673 0.00 5,959 0 5,959 0.00 0.00
Sub-Total: (B)(2) 38,460,488 7,716 38,468,204 9.00 107,795,526 7,796 107,803,322 25.21 16.21
Total Public Shareholding (B) = (B)(1) + (B)(2) 332,806,964 7,716 332,814,680 77.87 317,366,744 7,796 317,374,540 74.23 (3.64)
C. Shares held by Custodian for GDRs &
ADRs
Promoter and promoter group 0 0 0 0.00 0 0 0 0.00 0.00
Public 2,593,852 0 2,593,852 0.61 4004745 0 4004745 0.94 0.33
Employees Trusts 0 0 0 0.00 8400000 0 8400000 1.96 1.96
Grand Total (A + B + C) 427,395,623 7,716 427,403,339 100 427,566,295 7,796 427,574,091 100 0.00
44 |
*Of the 2,300,000 equity shares in the Company acquired by Mr. Sameer Gehlaut on 26th March, 2020 from open market, one
share short received in payout got credited to his demat account subsequent to 31st March, 2020. In addition, 2,400,000 equity
shares in the Company acquired by him on 31st March, 2020 from open market, got credited to his demat account subsequent
to 31st March, 2020. Hence, 2,400,001 equity shares are not included in his shareholding as on 31st March, 2020.
** Life Insurance Corporation of India is holding equity shares of the Company under two different categories i.e. 34,688,043
Equity Shares under the category Insurance Company and 11,135,680 Equity Shares under the category Indian Financial
Institution, under the same PAN AAACL0582H. However, to comply with the SEBI Circular dated December 19, 2017, requiring
the Company to consolidate the shareholding on the basis of PAN to avoid multiple disclosures of shareholding of same person,
the Company has consolidated entire shareholding of LIC i.e. 45,823,723 Equity Shares under the category Insurance Company
and has shown its name with entire shareholding as it is holding more than 1 percent under both categories.
(ii) Shareholding of Promoters
Sl. Shareholders Name Shareholding at the beginning of the year Shareholding at the end of the year % change
No. (April 1, 2019) (March 31, 2020) in share-
No. of % of total % of shares No. of % of total % of shares holding
shares shares pledged/ shares shares pledged/ during the
of the encumbered of the encumbered year
company to total Company to total
shares shares
1. MR. SAMEER GEHLAUT 500,000 0.12 0.00 14,851,481* 3.47 0.00 3.35*
2. ORTHIA DEVELOPERS PRIVATE 16,512,863 3.86 0.35 0 0.00 0.00 (3.86)**
LIMITED**
3. ORTHIA LAND DEVELOPMENT 17,017,165 3.98 0.00 0 0.00 0.00 (3.98)**
PRIVATE LIMITED**
4. GYAN SAGAR REAL ESTATE 10,000,000 2.34 1.76 0 0.00 0.00 (2.34)**
PRIVATE LIMITED**
5. CLETA PROPERTIES PRIVATE 10,800,000 2.53 0.00 0 0.00 0.00 (2.53)**
LIMITED**
6. CLETA BUILDTECH PRIVATE 6,020,000 1.41 0.28 0 0.00 0.00 (1.41)**
LIMITED**
7. ARBUTUS PROPERTIES PRIVATE 3,940,000 0.92 0.35 0 0.00 0.00 (0.92)**
LIMITED**
8. INUUS INFRASTRUCTURE 0 0.00 0.00 82,943,325 19.40 0.00 19.40**
PRIVATE LIMITED**
9. INUUS LAND DEVELOPMENT 0 0.00 0.00 0 0.00 0.00 0.00
PRIVATE LIMITED**
10. SG ADVISORY SERVICES PRIVATE 27,204,779 6.37 0.00 0 0.00 0.00 (6.37)**
LIMITED**
Total 91,994,807 21.52 2.74 97,794,806 22.87 0.00 1.35
*The change in % of shareholding of Mr. Sameer Gehlaut during the year is on account acquisition of 8,551,482 Equity Shares
through Inter-se and of 5,799,999 Equity Shares through Market Purchase. Of the 2,300,000 equity shares in the Company
acquired by Mr. Sameer Gehlaut on 26th March, 2020 from open market, one share short received in payout got credited to his
demat account subsequent to 31st March, 2020. In addition, 2,400,000 equity shares in the Company acquired by him on 31st
March, 2020 from open market, got credited to his demat account subsequent to 31st March, 2020. Hence, 2,400,001 equity
shares are not included in his shareholding as on 31st March, 2020.
**The erstwhile Transferor Companies namely, Orthia Developers Private Limited (Transferor Company 1), SG Advisory
Services Private Limited (Transferor Company 2), Inuus Land Development Private Limited (Transferor Company 3), Orthia Land
Development Private Limited (Transferor Company 6), Cleta Properties Private Limited (Transferor Company 7), Cleta Buildtech
Private Limited (Transferor Company 8), Gyan Sagar Real Estate Private Limited (Transferor Company 9) and Arbutus Properties
Private Limited (Transferor Company 10) being part of promoter group/PACs were holding in the aggregate 82,943,325 Equity
Shares of the Target Company i.e. Indiabulls Housing Finance Limited. Pursuant to Scheme of Amalgamation sanctioned by Order
of the Hon’ble National Company Law Tribunal (NCLT), Chandigarh Bench, Chandigarh, the Transferor Companies as aforesaid,
stand dissolved without undergoing the process of winding up, and equity shares of the Target Company held by these Transferor
Companies have been vested with the acquirer company i.e. Inuus Infrastructure Private Limited (Transferee Company), being part
of promoter group/PACs. Accordingly, the Transferee Company now holds 82,943,325 Equity Shares of the Target Company. The
Certified copy of the Order sanctioning the Scheme of Amalgamation received on March 18, 2020, was filed with the Registrar of
Companies, NCT of Delhi & Haryana on March 20, 2020.
| 45
(iii) Change in Promoters’ Shareholding (Specify if there is no change)
Sl. Shareholding at the beginning Cumulative Shareholding during

of the Year the year
No.
No. of Shares % of total No of shares % of total
shares of the shares of the
Company* Company
1. At the beginning of the year 91,994,807 21.52
Date wise increase/decrease in Promoters # #
Shareholding during the year specifying the
reasons for increase/ decrease (e.g. allotment/
transfer/bonus/ sweat equity etc)#
At the end of the year 97,794,806 22.87**
**The change in % is on account of market Purchase of 5,799,999 equity shares.
#Date wise increase/decrease in Promoters / Promoter Group Shareholding:
Sl. Name Shareholding Date Increase/ Reason Cumulative Shareholding during

Decrease in the year (01-04-19 to 31-03-20)
No. shareholding
No. of % of total No. of Shares % of total
Shares at the shares shares of
beginning of the theCompany
(01-04-19) Company
1 MR. SAMEER 500,000 0.12 01-Apr-2019 - - - -
GEHLAUT
16-Mar-2020 8,551,482 Off market inter se 9,051,482 2.12
transfer of shares
(Increase) between Promoter
Group for effecting
restructuring of their
shareholdings in the
Company
20-Mar-2020 3,500,000 Market Purchase 12,551,482 2.94
(Increase)
26-Mar-2020 2,299,999 Market Purchase 14,851,481* 3.47
(Increase)
At the end of the year (31-Mar-2020) 14,851,481* 3.47
2 ORTHIA DEVELOPERS 16,512,863 3.87 01-Apr-2019 - - - -

PRIVATE LIMITED**
20-Mar-2020 16,512,863 Transfer pursuant 0 0.00
to Scheme of
(decrease) Amalgamation
At the end of the year (31-Mar-2020) 0 0.00
3 ORTHIA LAND 17,017,165 3.99 01-Apr-2019 - - - -
DEVELOPMENT
PRIVATE LIMITED** 20-Mar-2020 17,017,165 Transfer pursuant 0 0.00
to Scheme of
4 CLETA PROPERTIES 10,800,000 2.53 01-Apr-2019 - - - -
PRIVATE LIMITED**
to Scheme of
46 |
Sl. Name Shareholding Date Increase/ Reason Cumulative Shareholding during

Decrease in the year (01-04-19 to 31-03-20)
No. shareholding
Shares at the shares shares of
beginning of the theCompany
(01-04-19) Company
5 CLETA BUILDTECH 6,020,000 1.41 01-Apr-2019 - - - -
PRIVATE LIMITED**
to Scheme of
6 ARBUTUS 3,940,000 0.92 01-Apr-2019 - - - -
PROPERTIES PRIVATE
LIMITED**
to Scheme of
7 GYAN SAGAR REAL 10,000,000 2.34 01-Apr-2019 - - - -
ESTATE PRIVATE
LIMITED**
to Scheme of
8 INUUS 0 0.00 01-Apr-2019 - - - -
INFRASTRUCTURE
20-Mar-2020 82,943,325 Acquisition pursuant 82,943,325 19.40
PRIVATE LIMITED**
to Scheme of
(Increase) Amalgamation
At the end of the year (31-Mar-2020) 82,943,325 19.40
9 INUUS LAND 0 0.00 01-Apr-2019 - - - -
DEVELOPMENT
PRIVATE LIMITED** At the end of the year (31-Mar-2020) 0 0.00
10. SG ADVISORY 27,204,779 6.37 01-Apr-2019 - - - -
SERVICES PRIVATE
LIMITED** 20-Mar-2020 27,204,779 Transfer pursuant 0 0.00
to Scheme of
shares in the Company acquired by him on 31st March, 2020 from open market, got credited to his demat account subsequent to
31st March, 2020. Hence, 2,400,001 equity shares are not included in his shareholding as on 31st March, 2020.
**The erstwhile Transferor Companies namely, Orthia Developers Private Limited (Transferor Company 1), SG Advisory Services
Private Limited (Transferor Company 2), Inuus Land Development Private Limited (Transferor Company 3), Orthia Land Development
Private Limited (Transferor Company 6), Cleta Properties Private Limited (Transferor Company 7), Cleta Buildtech Private Limited
(Transferor Company 8), Gyan Sagar Real Estate Private Limited (Transferor Company 9) and Arbutus Properties Private Limited
(Transferor Company 10) being part of promoter group/PACs were holding in the aggregate 82,943,325 Equity Shares of the
Target Company i.e. Indiabulls Housing Finance Limited. Pursuant to Scheme of Amalgamation sanctioned by Order of the Hon’ble
National Company Law Tribunal (NCLT), Chandigarh Bench, Chandigarh, the Transferor Companies as aforesaid, stand dissolved
without undergoing the process of winding up, and equity shares of the Target Company held by these Transferor Companies have
been vested with the acquirer company i.e. Inuus Infrastructure Private Limited (Transferee Company), being part of promoter
group/PACs. Accordingly, the Transferee Company now holds 82,943,325 Equity Shares of the Target Company. The Certified copy
of the Order sanctioning the Scheme of Amalgamation received on March 18, 2020, was filed with the Registrar of Companies,
NCT of Delhi & Haryana on March 20, 2020.
| 47
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters & Holders of GDRs & ADRs)$
Sl. Name Shareholding at the Shareholding at the end of

No. beginning of the year the year
No. of % of total No. of % of total

shares shares of the shares shares of the
Company Company
1. Life Insurance Corporation of India ^ 45,827,373 10.72 45,823,723 10.72
2. Star funds S.A., Sicav-SIF - Star International Fund^ 10,055,444 2.35 12,979,590 3.04
3. Franklin Mutual Series Funds - Franklin Mutual Beacon 8,676,627 2.03
Fund# 4,374,076 1.02
4. Indiabulls Housing Finance Limited-Employees Welfare 0 0.00 8,400,000 1.96
Trust#
5. BNP Paribas Arbitrage – ODI# 1,731,186 0.41 7,429,664 1.74
6. California State Teachers Retirement System-AQR Capital 6,273,083 1.47 6,736,148 1.58
Management, LLC^
7. DF International Partners# 4,985,385 1.17 6,063,065 1.42
8. Mondrian Emerging Markets Equity Fund L.P.^ 5,211,804 1.22 5,895,165 1.38
9. Steadview Capital Mauritius Limited^ 6,545,329 1.55 5,645,329 1.32
10. Vanguard Total International Stock Index Fund# 5,015,704 1.17 5,539,502 1.30
11. Jasmine Capital Investments Pte Ltd* 17,622,124 4.12 5,324,004 1.25
12. Merrill Lynch Markets Singapore Pte. Ltd* 11,180,372 2.62 506,140 0.12
13. Government Pension Fund Global* 6,238,950 1.46 3,115,676 0.73
14. Cinnamon Capital Limited* 6,000,239 1.41 0 0.00
15. College Retirement Equities Fund - Stock Account* 5,451,675 1.28 58,537 0.01
* Top 10 as on 01.04.2019 only.
#
Top 10 as on 31.03.2020 only.
^ Top 10 as on 01.04.2019 and 31.03.2020.
$
99.99% of paid-up Equity share capital of the Company are held in dematerialised form. These are traded on a daily basis at BSE
& NSE and hence, the date wise increase/decrease in shareholding is not indicated.
48 |
V) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

A) Shareholding of Directors:
Sl. Name Shareholding Date Increase/ Reason Cumulative Shareholding
No. Decrease in during the year (01-04-19 to
shareholding 31-03-20)
Shares shares shares of the
at the of the Company
beginning Company
(01-04-19)
1. Mr. Sameer Gehlaut, 500,000 0.12% 01-Apr-2019 - - - -
Founder and
Executive Chairman 16-Mar-2020 8,551,482 Off market inter se 9,051,482 2.12
(Refer Note 1) (Increase) transfer of shares
between Promoter
Group for effecting
restructuring of their
shareholdings in the
Company
20-Mar-2020 3,500,000 Market Purchase 12,551,482 2.94
(Increase)
26-Mar-2020 2,299,999 Market Purchase 14,851,481* 3.47
(Increase)
At the end of the year (31-Mar-2020) 14,851,481* 3.47
2. Mr. Gagan Banga, 3,441,105 0.81% 01-Apr-2019 - - - -
Vice-Chairman, - - 20-Mar-2020 100,000 Market Purchase 3,541,105 0.83%
Managing Director (Increase)
& CEO
At the end of the year (31-Mar-2020) 3,541,105 0.83%
3. Mr. Ajit Kumar Mittal, 92,600 0.02% 01-Apr-2019 - - - -
Executive Director 18-Jun-2019 30,000 Market 62,600
- - (Decrease) Sale 0.01%
- - 03-Dec-2019 500 Market 62,100 0.01%

(Decrease) Sale
- - 19- Mar-2020 12,400 Market Sale 49,700 0.01%
(Decrease)
At the end of the year (31-Mar-2020) 49,700 0.02%
4. Mr. Ashwini 424,713 0.10% 01-Apr-2019 - - - -
Omprakash Kumar,
- - 31-Dec-2019 200,000 Inter-se transfer to 224,713 0.05%
Deputy Managing Family Trust
(Decrease)
Director
5. Mr. Sachin Chaudhary 212,000 0.05% 01-Apr-2019 - - - -
Executive Director - - 31-May-2019 17,000 Market Sale 195,000 0.05%
to 04-Jun-2019 (Decrease)
- - 05-Jun-2019 12,500 ESOP Allotment 207,500 0.05%
(Increase)
- - 25-Jun-2019 to 10,000 Market Sale 197,500 0.05%
26-Jun-2019 (Decrease)
- - 13-Aug-2019 57,500 Market Sale 140,000 0.03%
to 16-Aug- (Decrease)
2019
- - 20-Aug-2019 12500 Market Sale 127,500 0.03%
(Decrease)
| 49

No. Decrease in during the year (01-04-19 to
shareholding 31-03-20)
Shares shares shares of the
at the of the Company
beginning Company
(01-04-19)
6. Mr. Shamsher Singh 0 0.00% 01-Apr-2019 - - - -
Ahlawat, Independent
At the end of the year (31-Mar-2020) 0 0.00%
Director
7. Dr. Kamalesh Chandra 0 0.00% 01-Apr-2019 - - - -
Chakrabarty,**
Independent Director At the end of the year (31-Mar-2020) N.A. N.A.
8. Mr. Prem Prakash 1,100 0.00% 01-Apr-2019 - - - -

Mirdha, Independent
Director At the end of the year (31-Mar-2020) 1,100 0.00%
9. Justice Gyan Sudha 0 0.00% 01-Apr-2019 - - - -
Misra (Retd. Justice
Supreme Court of
India), Independent
Director
10. Mr. Subhash 0 0.00% 01-Apr-2019
Sheoratan Mundra,
Independent Director At the end of the year (31-Mar-2020) 0 0.00%
(Refer Note 2)
11. Mr. Satish Mathur, 0 0.00% 01-Apr-2019

Independent Director
shares in the Company acquired by him on 31st March, 2020 from open market, got credited to his demat account subsequent to
31st March, 2020. Hence, 2,400,001 equity shares are not included in his shareholding as on 31st March, 2020.
**On completion of a tenure of five years, Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892), ceased to be the Independent
Director of the Company w.e.f. October 26, 2019.
Note 1: W.e.f. August 12, 2020, Mr. Sameer Gehlaut has relinquished the office of Executive Chairman of the company and has
been re-designated as Non-Executive Non-Independent Director of the Company.
Note 2: W.e.f. August 12, 2020, the Board has unanimously appointed Mr. Subhash Sheoratan Mundra, formerly the Deputy
Governor of Reserve Bank of India and an Independent Director, as Non-Executive Chairman of the Company.
50 |
B) Shareholding of KMP (Other than those mentioned above):

No. Decrease in during the yea
shareholding (01-04-19 to 31-03-20)

Shares at the shares shares of the
beginning of the Company
(01-04-19) Company
1. Mr. Mukesh Kumar 39,000 0.01% 01-Apr-2019 - - - -
Garg, CFO - - 29-May-2019 9,200 Market 29,800 0.01%
(Decrease) Sale
- - 03-Jun-2019 29,800 Market 0 0.00%
(Decrease) Sale
(Increase)
- - 19-Jun-2019 to 10,000 Market 0 0.00%
20-Jun-2019 (Decrease) Sale
2. Mr. Amit Jain, 1,500 0.01% 01-Apr-2019 - - - -
Company Secretary - - 23-May-2019 1,500 Market Sale 0 0.00%
(Decrease)
(Increase)
- - 13-Aug-2019 4,800 Market Sale 0 0.00%
(Decrease)
- - 25-Mar-2020 1,000 Market Purchase 1,000 0.00%
- - 26-Mar-2020 750 Market Purchase 1,750 0.00%
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Amount (in ₹ Crores)
Secured Loans Unsecured Deposits Total

excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial
year
i) Principal Amount 86,545.20 9,659.38 - 96,204.58
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 1,696.45 172.11 - 1,868.56
Total (i + ii + iii) 88,241.65 9,831.49 - 98,073.14
Change in Indebtedness during the financial year
i) Principal Amount (18,102.26) (5,061.68) - (23,163.94)
iii) Interest accrued but not due (420.79) 1.24 - (419.55)
Net Change (18,523.05) (5,060.44) - (23,583.49)
Indebtedness at the end of the financial year
i) Principal Amount 68,442.94 4,597.70 - 73,040.64
iii) Interest accrued but not due 1,275.66 173.35 - 1,449.01
Total (i + ii + iii) 69,718.60 4,771.05 - 74,489.65
| 51
VI. REMUNERATION OF DIRECTOR AND KEY MANAGERIAL PERSONNEL#

A. REMUNERATION TO MANAGING DIRECTOR (MD), WHOLE TIME DIRECTOR (WTD) AND/OR MANAGER:
Amount (in ₹)
Sl. Particulars of Remuneration $
Name of the MD/WTD/Manager Total
Amount
No. Mr. Sameer Mr. Gagan Mr. Ashwini Mr. Ajit Mr. Sachin
Gehlaut# Banga## Omprakash Kumar Chaudhary##
Kumar## Mittal#
1. Gross salary
(a) Salary as per provisions contained 125,105,214 101,988,764 51,112,868 19,660,095 46,866,862 344,733,803
in section 17(1) of the Income Tax,
1961.
(b)
Value of perquisites u/s 17(2) of - 8,448,413 39,600 1,276,800 39,600 9,804,413
the Income Tax Act, 1961*
(c)
Profits in lieu of salary under - - - - - -
section 17(3) of the Income Tax
Act, 1961
2. Stock option* - - - - - -
3. Sweat Equity - - - - - -
4. Commission (as % of profit/others) - - - - - -
5. Others, please specify - - - - - -
Total (A) (excludes perquisite on stock 125,105,214 110,437,177 51,152,468 20,936,895 46,906,462 354,538,216
options reported in point 2)
Ceiling as per the Act ₹ 276.98 Crores (being 10% of the net profits of the Company calculated as per Section
198 of the Companies Act, 2013)
#
To augment and support growth of the Company, Mr. Sameer Gehlaut has opted not to avail any increment with respect to his
remuneration in the last four year. Additionally, Mr. Sameer Gehlaut and Mr. Ajit Kumar Mittal, have voluntarily decided to not
draw any salary effective from October 1, 2019.
In the second half of FY 2019-20 and in the first quarter of FY 2020-21, Mr. Gagan Banga, Mr. Ashwini Omprakash Kumar and
##
Mr. Sachin Chaudhary have opted to take a 75%, 63% and 33% cut respectively, on their salaries.
* Excludes value of perquisites on exercise of stock options.
$
Excludes retirement benefits.
52 |
B. REMUNERATION TO OTHER DIRECTORS:

Amount (in ₹)
Sl. Particulars of Remuneration Name of Director Total

paid during their Tenure Amount
No.
1. Independent Directors Mr. Justice Mr. Prem Mr. Subhash Mr. Satish Dr. Kamalesh
Shamsher Mrs. Gyan Prakash Sheoratan Chand Chandra
Singh Sudha Misra Mirdha Mundra Mathur Chakrabarty*
Ahlawat (Retd.)
(a)
Fee for attending board 800,000 600,000 500,000 600,000 700,000 - 3,200,000
committee meetings
(b) Commission - - - - - - -
(c)
Others (Profit Link - - - - - 3,818,380 3,818,380
Incentive)
Total (1) 800,000 600,000 500,000 600,000 700,000 3,818,380 7,018,380
2. Other Non-Executive Director N.A.
(a)
Fee for attending board N.A.
committee meetings
(b)
Commission N.A.
(c) Others, please specify N.A.
Total (2) N.A.
Total (B) = (1 + 2) 7,018,380
Total Managerial 7,018,380
Remuneration
Ceiling as per the Act ₹ 27.70 Crores (being 1% of the net profits of the Company calculated as per Section 198 of the
Companies Act, 2013)
*On completion of a tenure of five years, Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892), ceased to be the Independent
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD:
Amount (in ₹)
Sl. Particulars of Remuneration$ Key Managerial Personnel@ Total

No. CEO Amit Kumar Jain, Mukesh Kumar
Company Secretary Garg, CFO
1. Gross Salary
(a) Salary as per provisions contained in section - 4,138,952 35,059,946 39,198,898
17(1) of the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income - 81,450 39,600 121,050
Tax Act, 1961*
(c) Profits in lieu of salary under section 17(3) - - - -
of the Income Tax Act, 1961
2. Stock Option* - - - -
3. Sweat Equity - - - -
4. Commission (as % of profit/others) - - - -
5. Others - - - -
Total - 4,220,402 35,099,546 39,319,948
@
In the second half of FY 2019-20 and in first quarter of FY 2020-21, Mr. Mukesh Kumar Garg had opted to take a 33% cut on his
salary and w.e.f. April 1, 2020, Mr. Amit Jain had opted to take a 26.5% cut on his salary.
*Excludes value of perquisites on exercise of stock options.
$
| 53
VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES

During the year under review, the Company, its directors or any of its officers were not liable for any penalty, punishment or any
compounding of offences under the Companies Act, 2013.
Sd/- Sd/-
Gagan Banga Ajit Kumar Mittal
Place: Mumbai Vice-Chairman,Managing Director & CEO Executive Director
54 |
Annexure-5
POLICY FOR DEALING WITH RELATED PARTY TRANSACTIONS
I. INTRODUCTION
Indiabulls Housing Finance Limited (the “Company” / “IHFL”) is governed, amongst others, by the rules and regulations framed
by Securities Exchange Board of India (“SEBI”). SEBI has mandated every listed company to formulate a policy on materiality of
Related Party Transactions and also on dealing with Related Party Transactions. Accordingly, Pursuant to Regulation 23 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), the Company has formulated this
policy on materiality of related party transactions and on dealing with related party transactions.
This policy aims at preventing and providing guidance in situations of potential conflict of interests in the implementation of
transactions involving such related parties.
II. DEFINITIONS
For the purposes of this Policy, the following definitions apply:
a) “Act” means the Companies Act, 2013, for the time being in force and as amended from time to time.
b) “Listing Regulations” means the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the time
being in force and as amended from time to time.
c) “Audit Committee” means Committee of Board of Directors of the Company constituted under provisions of Section 177 of
the Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
d) “Board/Board of Directors” means the board of directors of IHFL.
e) “Related Party” shall mean a person or entity that is related to the Company as defined under Section 2(76) of the
Companies Act, 2013 or under Regulation 2(zb) of the Listing Regulations, as may be amended from time to time.
f) “Related Party Transaction” shall mean all transactions as per Section 188 of the Act or under regulation 2(zc) of the Listing
Regulations or as per applicable accounting standards, as may be amended from time to time.
g) “Material transaction” means transaction(s) defined as Material Related Party Transaction(s) under Regulation 23 of the
SEBI (Listing Obligations and Disclosure Requirements), Regulation, 2015.
h) “Arm’s length transaction” means a transaction between two related parties that is conducted as if they were unrelated,
so that there is no conflict of interest.
i) “Ordinary Course of Business” - The transactions shall be in the ordinary course of business if - (a) If the transaction is
covered in the main objects or objects in furtherance of the main objects or (b) If the transaction is usual as per industry
practice or (c) If the transaction is happening frequently over a period of time and is for the business purpose of the
Company.
j) “Annual Consolidated Turnover” is defined as Total Income (including other income) of the last audited Consolidated
Financial Statements of the Company.
All capitalized terms used in this Policy but not defined herein shall have the meaning assigned to such term in the Act and
the Rules thereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), as
amended from time to time.
III. POLICY
All RPTs must be in compliance of this Policy and subject to all applicable regulatory requirements.
IV. REVIEW AND APPROVAL OF RELATED PARTY TRANSACTIONS
Approval of Related Party Transactions:
A. Audit Committee:
i. All the transactions which are identified as Related Party Transactions should be pre-approved by the Audit
Committee before entering into such transaction. The Audit Committee shall consider all relevant factors while
deliberating the Related Party Transactions for its approval.
ii. Any member of the Audit Committee who has a potential interest in any Related Party Transaction will recuse himself
and shall not participate in discussion and voting on the approval of the Related Party Transactions.
| 55
B. Board of Directors:
i. In case any Related Party Transactions are referred by the Company to the Board for its approval due to the
transaction being (i) not in the ordinary course of business, or (ii) not at an arm’s length price, the Board will consider
such factors as, nature of the transaction, material terms, the manner of determining the pricing and the business
rationale for entering into such transaction. On such consideration, the Board may approve the transaction or may
require such modifications to transaction terms as it deems appropriate under the circumstances.
ii. Any member of the Board who has any interest in any Related Party Transaction will recuse himself and shall not
participate in discussion and voting on the approval of the Related Party Transaction.
C. Shareholders:
i. If a Related Party Transaction is (i) a material transaction as per Regulation 23 of the Listing Regulations, or (ii) not
in the ordinary course of business, or not at arm’s length price and exceeds certain thresholds prescribed under the
Companies Act, 2013, it shall require shareholders’ approval by a special resolution.
ii. Any member, who is a Related Party, shall not participate in discussion and voting on resolution for approving such
Related Party Transaction.
V. OMNIBUS APPROVAL BY AUDIT COMMITTEE FOR RELATED PARTY TRANSACTIONS
The Audit Committee may grant omnibus approval for Related Party Transactions which are repetitive in nature and subject
to such criteria/conditions as mentioned under Regulation 23(3) of the Listing Regulations and such other conditions as it may
consider necessary in line with this Policy and in the interest of the Company. Such omnibus approval shall be valid for a period
not exceeding one year and shall require fresh approval after the expiry of one year.
A Related Party Transaction entered into by the Company, which is not under the omnibus approval or otherwise pre-approved
by the Audit Committee, will be placed before the Audit Committee for ratification.
VI. RELATED PARTY TRANSACTIONS NOT APPROVED UNDER THIS POLICY
In the event the Company becomes aware of a RPT with a Related Party that has not been approved under this Policy prior to its
consummation, the Company would obtain post facto approval from the Audit Committee.
In case the Company is not able to take prior approval from the Audit Committee, such a transaction shall not be deemed to
violate this Policy, or be invalid or unenforceable, so long as the transaction is informed to the Audit Committee as promptly as
reasonably practical after it is entered into or after it becomes reasonably apparent that the transaction is covered by this policy.
The Audit Committee shall consider all relevant facts and circumstances regarding the RPT and shall evaluate all options available
to the Company, including ratification, revision or termination of the RPT.
VII. THRESHOLD LIMITS FOR MATERIALITY OF RELATED PARTY TRANSACTIONS
The threshold limits for materiality of related party transactions shall be –
(a) ` 200 (Rupees Two Hundred Crores), or
(b) ten percent of the annual consolidated turnover, as per the last audited financial statements of the Company, whichever is
lower.
VIII. DISCLOSURE OF THE POLICY
This Policy will be uploaded in the website of the Company at https:// www.indiabullshomeloans.com/.
IX. POLICY REVIEW
This Policy is framed based on the provisions of Regulation 23 of the Listing Regulations. In case of any subsequent changes in
the provisions of the Listing Regulations or the Companies Act, 2013 and Rules made thereunder (Act), then the amended Listing
Regulations/Act would prevail over the Policy and the provisions in the Policy would be suitably modified in due course to make
it consistent with law.
The Board may review and amend this policy from time to time. The Audit Committee (the “Committee”) will review, modify and
approve the related party transaction to be entered by the Company.
56 |
Annexure-6
DISCLOSURE ON MANAGERIAL REMUNERATION
Details of remuneration as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, are as under:-
Ratio of the remuneration of each director to the median employees’ remuneration, for FY 2019-20
Name & Designation Ratio of remuneration to median

employees’ remuneration
Mr. Sameer Gehlaut, Executive Chairman 311 : 1
Mr. Gagan Banga, Vice Chairman, Managing Director & CEO 253 : 1
Mr. Ashwini Omprakash Kumar, Deputy Managing Director 127 : 1
Mr. Ajit Kumar Mittal, Executive Director 49 : 1
Mr. Sachin Chaudhary, Executive Director 116 : 1
It is to be noted that the above table is drawn up on the amounts of remuneration paid to the executive directors during FY2019-20. In
the second half of FY2019-20 and in the first quarter of FY2020-21, the directors took voluntary pay cuts such that:
• Executive Chairman, Mr. Sameer Gehlaut and Executive Director, Mr. Ajit Mittal, are drawing zero salary since October, 2019
• Vice Chairman, Managing Director & CEO, Mr. Gagan Banga, including pay cuts taken in Q1 FY2020-21, has voluntarily opted for
total pay cut of 75%
• Deputy Managing Director, Mr. Ashwini Omprakash Kumar, including pay cuts taken in Q1 FY2020-21, has voluntarily opted for
total pay cut of 63%
• Executive Directors, Mr. Sachin Chaudhary and Mr. Mukesh Garg, including pay cuts taken in Q1 FY2020-21, have voluntarily opted
for total pay cut of 33%
The details of fee for attending Board meetings and other incentives, if any, paid to Independent and Non- Executive Directors have been
disclosed in Corporate Governance Report, forming part of this Annual Report.
Percentage increase in remuneration of each director and Key Managerial Personnel, in FY 2019-20
Name & Designation Increase in Remuneration [%]

Mr. Sameer Gehlaut, Executive Chairman -100.0%
Mr. Gagan Banga, Vice Chairman, Managing Director & CEO -44.9%
Mr. Ashwini Omprakash Kumar, Deputy Managing Director -45.0%
Mr. Ajit Kumar Mittal, Executive Director -100.0%
Mr. Sachin Chaudhary, Executive Director -10.8%
Mr. Mukesh Garg, Chief Financial Officer -10.8%
Mr. Amit Jain, Company Secretary 0.0%
Again, the above table has been drawn up on the remuneration of the key managerial personnel in FY2019-20. Details of voluntary pay
cuts taken in the second half of FY2019-20 and Q1 FY2020-21 have been mentioned below the first table above.
Average percentile increase in the median remuneration of employees other than Managerial Personnel, in FY 2019-20
The average increase in the remuneration of all the employees, other than Managerial Personnel, was 2.2%. This was determined based
on the overall performance of the Company and internal evaluation of Key Result Areas.
Number of permanent employees on the rolls of Company
The Company had 5,405 employees on its permanent rolls, as of March 31, 2020.
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year
and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are
any exceptional circumstances for increase in the managerial remuneration
The average percentage increase made in the salaries of total employees other than the key managerial personnel, for FY 2020 is around
2.2%, while the average decrease in the remuneration of key managerial personnel is around 65% [reduction in salary due to voluntary
pay cuts].
| 57
The Company follows prudent remuneration practices under the guidance of the Board and Nomination and Remuneration Committee.
The Company’s approach to remuneration is intended to drive meritocracy and is linked to various parameters including its performance,
growth, individual performance, peer comparison of other housing finance companies, within the framework of prudent Risk
Management.
The change in remuneration of Key Managerial Personnel is based on the overall performance of the Company. With the macro-economic
headwinds facing the NBFC/HFC sector for most of the last two years, the Company has focused on conserving capital and liquidity, and
consequent rationalisation of the balance sheet. The management has also looked at cost structures, taking voluntary pay cuts and
reducing other operating expenses.
Sd/- Sd/-
Gagan Banga Ajit Kumar Mittal
Place: Mumbai Vice-Chairman,Managing Director & CEO Executive Director
58 |
Management Discussion and Analysis Report

Global Economic Outlook boost demand. In September 2019, the Government of India
slashed the corporate tax rates from 30% to 22% [15% for new
Global economic growth decelerated in CY2019 to 2.9% from 3.6%
domestic manufacturing companies – amongst the lowest in the
in CY2018. While the first half of fiscal year 2020 was affected
world] in an attempt to promote investment and boost growth.
by elevated US – China trade tensions, delays around Brexit,
This complemented aggressive rate cuts from the RBI which
and volatility in the oil market. By the end of FY2020, the world
reduced the benchmark policy rate in multiple steps from 6% in
economy was reeling from the impact of the COVID-19 pandemic.
April 2019 to 4.4% in March 2020. During most of the fiscal year
The World Health Organization [WHO] declared COVID-19 as 2020, the reduction in repo rate was moderate, ranging between
a pandemic on March 11, 2020. The pandemic has impaired 25-35 bps, and was attributed to the cyclical disturbances due to
global economy, international trade, financial structures, and muted private consumption, contracted manufacturing activities,
most importantly human health and healthcare infrastructure. sluggish investments and trade tensions. However the economic
Factoring in the adverse effect of the pandemic, the IMF, in June disruption intensified in the fourth quarter of the fiscal year 2020
2020, projected global GDP for CY2020 to contract by as much as due to the COVID-19 pandemic, and the consequent nationwide
4.9% - signalling the worst recession the world has seen since the lockdown. Amid fast-changing macroeconomic environment and a
Great Depression of the 1930s. The COVID-19 crisis threatens to deteriorating outlook for growth, the Monetary Policy Committee
reverse a significant part of the progress made in recent years, and [MPC] held off-cycle meetings in March and May, cumulatively
it is feared millions of people will be pushed back into poverty. reducing repo rate by a total of 115 basis points to 4.00%, the
lowest level since the year 2000.
Countries world over resorted to complete or partial lockdowns to
‘flatten the curve’ of the infection. Major central banks across the In the past 69 years, India has seen recession only thrice. The
globe shifted to an accommodative stance by effecting policy rate COVID-19 led recession is expected to be the worst recession
cuts to stimulate economic activity. Central banks also pumped in witnessed by the country since independence. As per estimates,
liquidity [often in the form of loans], eased countercyclical capital the Indian GDP is expected to contract anywhere between 5%
buffers, and also resorted to asset purchase schemes to increase and 10%, depending on various factors including the extent and
money supply and decrease longer term rates. duration of local, state-level lockdowns.
Output collapsed in most major economies in March, began a slow The average inflation rate for FY 2019-20 remained within RBI’s
recovery in April, and accelerated in May. However, the global comfort zone of 4% +/- 2%. However, pressures are now building
economic activity continues to remain fragile, and is in recession on both the demand and supply sides. Inflationary pressure from
in several geographies. While the uneasy and differently-paced supply disruptions, reduced availability of labour, high tariffs on
withdrawal of COVID-19 lockdown restrictions in some countries some imported commodities, and excess liquidity in the banking
enabled a sequential improvement in financial indicators, a system, will offset the deflationary pressures from subdued
renewed surge in COVID-19 infections in major economies, and demand in the economy. Owing to these factors, the CPI inflation
threat of a second wave of infections, appear to have weakened rate edged up to 6.1% in June 2020, beyond RBI’s upper margin
these early signs of revival. In June, some economies already limit of 6%. However, considering that the economy is experiencing
appear to be losing steam, with activity still well short of pre-virus unprecedented stress in a difficult global macro-economic
levels. Contractions in economic activity has been more severe environment, the need to support economic recovery was the
in Q2 of FY2021 than in Q1, and the near-term outlook points primary consideration of the monetary policy. Accordingly, the
to a stepped recovery, rather than a ‘V’ or ‘U’ shaped recovery, MPC in their latest meeting held from August 4th to August 6th,
and that too only towards the second half of the year, and with maintained an accommodative monetary policy stance.
significant downside risks.
The pandemic-induced lockdown and the depressed global
What happens to global growth in the second half will depend economic environment impacted India’s exports. However, low
on three factors: when the spread of the pandemic comes under crude oil prices reduced the import bill. The current account
control; whether sufficient stimulus is in place; and to what extent balance for India turned into a marginal surplus of 0.1% of GDP
post-pandemic caution from households and businesses restrains in quarter four of FY 2019-20, compared with a deficit of 0.7% a
economic activity. year ago. This was the first quarterly surplus for India in 13 years.
For the full FY 2019-20, the current account deficit narrowed to
Domestic Economy 0.9% of the GDP compared to 2.1% in FY 2018-19. Lower trade
Indian GDP growth continued its downward trajectory in every deficit was one of the primary reasons for improvement in current
successive quarter of FY 2019-20, expanding by a mere 3.1% in the account balances both for the March quarter as well as for the
fourth quarter and 4.2% for the entire FY 2019-20 - the slowest whole fiscal year. India’s forex reserves surged to an all-time high
growth since FY 2008-09. The downward spiral which began of $ 534.6 Billion as on July 31, 2020, enough to cover 13.4 months
with outflow of international investments soon ballooned into a of imports.
consumption slowdown led by weakening credit growth due to Government’s & RBI’s Response to COVID-19
liquidity constraints facing the NBFCs and HFCs, credit averseness
amongst banks, weak capital expenditure, and a slowdown in To reduce the impact of the pandemic, the Government of India
manufacturing. The government and the RBI announced a slew announced a slew of measures aimed at restarting the economy.
of measures during the year to revive the economy by trying to The government unveiled a ₹ 20.9 lakh Crores relief package under
| 59
the ‘Atma Nirbhar Bharat Abhiyan’ [self-reliant India]. The package sales’ velocity, and high unsold inventories. This has been made
is built around the five pillars of economy, infrastructure, system, worse by shifting buyer preference for completed projects rather
vibrant demography and demand. than under-construction projects.
To address near-term issues, in addition to direct-benefit transfers The COVID-19 pandemic further intensified the headwinds
and additional spending through MNREGA, the government already facing the housing finance and the real estate sectors. The
has mobilised transfers to micro, small and medium enterprises pandemic, and the subsequent nationwide and local lockdowns,
[MSME], agriculture, and affordable-housing sectors. as well as other restrictions to contain spread of the virus, have
taken a large toll on the economy. This has had a cascading impact
The policy also unveiled liquidity support measures for NBFCs,
on construction activity. Large scale migration of labourers back
HFCs, and MFIs. These measures include:
to their home towns and villages during the nationwide lockdown
− Long Term Repo Operations [LTRO] of ₹ 1 lakh Crores and period, and subsequent uncertainty over project execution have
Targeted Long Term Repo Operations [TLTRO] of ₹ 50,000 affected buyer sentiment with regards to under-construction
Crores projects.
− Special Liquidity Scheme offering guarantees for up to ₹ The RBI on March 27, 2020 announced a COVID-19 regulatory
30,000 Crores on investments in primary and secondary package wherein it allowed borrowers to avail moratorium for
debt papers of NBFCs/ HFCs term loan instalments falling due between March 1, 2020 and May
31, 2020. In May 2020, the moratorium was further extended for
− Partial Credit Guarantee Scheme of ₹ 45,000 Crores for 3 months i.e. up to August 31, 2020. During the moratorium, a
NBFCs rated AA and below, including unrated paper. standstill was imposed on asset classification norms to mitigate
Within this, the first 20% of the loss will be borne by the the impact on credit quality. The RBI also allowed extension of
Government of India. This will provide liquidity relief to date of commencement of commercial operations by 1 year for
small and mid-sized non-banks that were facing liquidity projects which are delayed for reasons beyond the control of
issues promoters, without asset classification downgrade.
− ₹ 10,000 Crores of Additional Standing Liquidity Facility to The government also set up an alternative investment fund to
NHB and NABARD provide last mile funding for incomplete affordable housing
The package also contained many measures for MSMEs, the most projects called the Special Window for Completion of Construction
significant of which was an allocation of up to ₹ 3 lakh Crores of Affordable and Mid-Income Housing Projects [SWAMIH
emergency line of credit from banks and NBFCs. This is expected to Investment Fund]. The fund will finally have a ₹ 25,000 Crores
provide much-needed liquidity to MSMEs. The stimulus measures corpus, with the government committing up to ₹ 10,000 Crores
will spur credit growth for both banks and non-banks and keep and the balance being contributed by public sector banks, Life
their clients’ businesses afloat. Insurance Corporation of India, amongst others investors. So far,
₹ 8,767 Crores of funding towards 81 stressed projects has been
However, the increased spending will also put upward pressure approved, enabling completion of almost 60,000 homes across
on fiscal deficit, which is in turn expected to push up yields in FY a mix of markets including large cities as well as tier-2 locations
2020-21. across India.
Housing Sector Impact of COVID-19 on Housing Finance and Non-bank Finance
‘Housing for all by 2022’ has been a headline mission of the Companies
Modi government since their first term in office. According to the The pandemic has resulted in economic and operational disruption,
Ministry of Housing and Urban Affairs, under Pradhan Mantri Awas has introduced significant uncertainties, and the RBI moratorium
Yojana [PMAY] – Prime Minister’s Housing Scheme, over one Crore has delayed collections disturbing cash flows. Non-bank financiers
homes have been sanctioned, of which 33.5 lakh houses have are in a cash conservation mode and have tightened underwriting
been completed and 64 lakh units are already under construction. standards. As growth expectations get pared, companies are also
The Credit Linked Subsidy Scheme [CLSS] – a component of the rationalising expenses, other business costs and risks, through
PMAY, has also enabled several families become homeowners. branch rent renegotiations and non-structural cost conservation
In the most recent budget, Finance Minister Nirmala Sitharaman measures, maintaining diversified funding sources, revising their
extended the additional tax deduction, of up to ₹ 1.5 lakh for underwriting and risk management practices, and raising capital
interest paid on loans taken towards purchase of a family’s first or resorting to financial deleveraging. With prolonged partial
house, by an additional year for loans sanctioned on or before lockdown, and social distancing requirements, businesses are
March 31, 2021. Further, to boost the supply of affordable housing reorienting their activities by increased reliance on digital channels
in the country, the FM also extended the tax holiday on profits to source loans and deliver customer service.
earned by developers of affordable housing projects by one year Operational Highlights
to projects approved till March 31, 2021.
The NBFC/ HFC sector has been facing headwinds for nearly two
The residential real estate market has been going through a years now, having to negotiate through the liquidity squeeze
rough phase even prior to the COVID-19 pandemic. Developers triggered by the IL&FS default. The COVID-19 pandemic and the
faced difficulty in raising incremental funds owing to the liquidity resulting worsening macro-economic environment has posed
constraints of NBFCs & HFCs, and sectoral risk averseness amongst new challenges. The Company believes that maintaining healthy
banks. Several developers were over-leveraged and troubles capital levels and liquidity buffer, is the best defence in such times
further compounded due to insufficient cash flows owing to low of heightened uncertainty – IBH’s efforts since September 2018
60 |
have been focused towards this end. As on March 31, 2020, IBH thereon] of over ₹ 13,500 Crores of which ₹ 9,268 Crores
had on-balance sheet liquidity in cash and investments of ₹ 13,410 has been distributed over last five years. The company
Crores. This is equivalent to 18.4% of its loan book and is in line distributed ₹ 1,590 Crores of dividends in FY 2019-20.
with the Company’s principle of maintaining a liquidity buffer of
• Moderate NPAs and adequate provision buffer: Moderate
15% to 20% of its loan book on its balance sheet.
Gross NPA of 1.84%. Total provision buffer of ₹ 3,741 Crores,
IBH is very well capitalized and at the end of FY2019-20 had a representing 5.1% of loan book and 218% of GNPA as of
capital adequacy ratio of 22.82% and Tier 1 of 15.05%, against March 2020.
regulatory requirement of 13% and 10% respectively.
• Strong fundamentals and foundation: At 4.0x the Company
Despite the tight liquidity environment, IBH has managed to retain has one of the lowest net gearing amongst peers. The
ample liquidity on its balance sheet through fresh borrowings and Company is also one of the best capitalized amongst peers
portfolio sell down. IBH has also availed of the various liquidity with capital adequacy ratio of 22.8%.
schemes announced by the government and the RBI. During the
• Conservative conduct of business: Cash and investments of
year, IBH continued to sell down retail loan pools and securitise/
18.4% of loan book [₹ 13,410 Crores on March 31, 2020] to
refinance wholesale loans, and generate liquidity.
mitigate risk of business disruption from liquidity squeezes.
The Company continued with its stated aim of running down its
Transforming to an Asset Light Model
developer loan book on balance sheet through refinance as well
as portfolio sell down. The Company further plans to run down its The HFC business has to go through a cyclical shift wherein balance
developer loan book to half by the end of FY2020-21. sheets that have concentrated exposures, and high leverage
business models, will have to transform into leaner, asset light
Financial Performance
models.
The Company’s focus during the year was on conserving liquidity
Going forward, the Company intends to follow an asset-light
and managing its ALM profile. As a result, the Company moderated
growth model, and work in partnership with some banks rather
incremental disbursals during the year. Despite the slowdown and
than compete with the banking sector.
the headwinds facing the NBFC/HFC and the real estate sector, IBH
ended FY 2019-20 on very strong financial footing. We see opportunity in co-originating loans with banks and
portfolio investment funds, and increased portfolio sell-downs.
The Company’s balance sheet stood at ₹ 1,02,872 Crores as at end
This model of business will provide steady revenue stream with
of FY 2019-20. Total loan assets stood at ₹ 93,021 Crores, and sold
a leaner balance sheet risk, and will also be capital light and thus
down book stood at ₹ 19,956 Crores.
RoE accretive.
The company’s revenues for the year ended March 31, 2020 were
In retail loans the Company will originate home loans and
₹ 13,223 Crores and profits for the year were ₹ 2,200 Crores.
MSME LAP loans which it can then securitize to banks and other
Adjusted for COVID-19 provisions, the PAT for the year was ₹ 2,904
financial institutions, with incremental disbursements split as
Crores.
60:40 between home loans and LAP loans to MSMEs. Of all the
In the backdrop of the COVID-19 pandemic induced depressed incremental business generated, only a relatively small proportion
economic outlook, the Company has worked to rationalise its will stay on the Company’s balance-sheet, while the rest will be
operating expenses. The senior management has taken the off-balance sheet.
lead in this by taking voluntary salary cuts. The total monthly
The RBI, in September 2018, released guidelines on the co-
operating expenses of your Company have been reduced from
origination model between banks and NBFCs for sourcing of
an average of ₹ 70 Crores per month in FY 2019-20 to under ₹
priority sector loans. The co-origination model involves the sharing
40 Crores per month in FY 2020-21. With the exception of a few
of risk and reward between banks and NBFCs, through a 80:20
strategic positions, all incremental and replacement hiring has
participation, whereby 80% of the loan resides on the partner
been frozen till September 2020. Rents of current branches have
bank’s balance sheet, and the remainder 20% on the NBFC’s
been renegotiated and all branch expansion plans have been put
balance sheet. The customer gets a rate that is a blend of 80% bank
on hold till September 2020. Other non-salary operating expenses
rate and 20% NBFC’s – enabling the NBFCs to realize healthy yield,
such as advertising, travel, and all other discretionary expenses
while the yield for the end-customer still remains very reasonable
have also been frozen till September 2020.
and competitive. The credit policy for co-originated loans will be
Asset quality remained strong with moderate Gross NPAs of 1.84% jointly drawn up by the partner Bank and the NBFC.
and Net NPAs of 1.24%. Total provisions stood at ₹ 3,741 Crores,
A key part of the strategy is to also increase portfolio sell down.
representing 5.1% of the loan book and 218% of GNPAs as of
Securitisation is an efficient means of increasing operational
March 2020.
leverage as it moves the loan off the balance sheet while
With capital adequacy of 22.8% for the period ended March 31, retaining the spread. It has the twin benefits of reducing capital
2020, IBH was amongst the best capitalized companies amongst requirements, making this lending very capital-efficient, and
its HFC, NBFC and banking peers. adding to margins, making it RoE accretive.
The company stands out on key qualitative and quantitative For well over a decade now, IBH has been consistently among
parameters: the largest sellers of mortgage pools in India, and the Company
has sell down relationships with 25 financial institutions, mainly
• Focus on stakeholder value creation: To date, IBH has banks. These banks are well acquainted with its portfolio and
distributed dividends [including Corporate Dividend Tax underwriting quality. Thus the sell down portion of the strategy
| 61
is already firmly in place and is happening on an on-going basis. Training & Development continued to be the key area of focus this
Loans are sold down at a spread to the yield received from end- year as well. Your company focused on overall capability building,
customers, this spread is earned on 100% of the sold loans, while productivity improvement, and enhancement of skill-sets for all
only 10% to 20% of this remains on the balance sheet. Going employees, cutting across verticals and hierarchy. We conducted
forward, our strategy is to further increase the proportion of the regular workshops and introduced new online modules to meet
sold portfolio compared to levels in the past. the training needs of our workforce.
While portfolio sell down along with securitization of loans has The HR team works at continuously improving employee connect
always been a core element of our business model, the regulators and employee engagement across the country to foster inclusivity,
and the rating agencies too have now recognised the importance and originality across our locations pan India.
and criticality of these transactions. Credit rating agencies
which were originally sceptical of securitization as a fund raising The health and well-being of our employees is a priority for us.
programme that could support NBFCs/ HFCs tide over liquidity We launched MITR – our Employee Assistance Program last year,
squeezes, have now turned around and have started appreciating which caters to our employees and their families. During the
it as an important source of raising funds. Even the regulators have COVID-19 lockdown period, HR formed a Quick Response Team
realized the importance of securitization/ sell down programme [QRT] that provided assistance to employees and their families in
and have worked to deepen this very important market as is need. Employees were periodically notified on health and safety
evidenced from the recently proposed new draft guidelines on measures to be taken to avoid contracting the virus, and tips to
securitization and sale of loan exposures. The draft guidelines of build their immunity. Staff that could work from home have been
RBI are in fact quite evolved and will definitely give a boost to the enabled to do so, without any compromise on branch operations.
loan sell down market. Reduction of Minimum Holding Period Employees with company-issued laptops were given secure,
[MHP] for securitization of residential mortgage backed securities remote Virtual Private Networks [VPNs] access to company
[RMBS] loans to 6 months from the earlier 12 months will result network. Employees that were using desktops, have either been
in an increase in the availability of assets eligible for securitisation. issued laptops with appropriate security control measures, or
Removal of Minimum Retention Requirement [MRR] for sale Virtual Desktop Infrastructure [VDI] with appropriate data security
of loan exposures will help generate greater liquidity for the measures were provided to connect through home PCs. Employees
originators from the same quantum of asset pool. We expect that do not have internet access at home have been provided with
portfolio sell down to contribute an increasingly larger proportion data cards.
of our funding mix going forward. We believe in employee empowerment and our efforts are focused
Subordinated Debt on creating a happy and healthy work environment. Our people
have been and will continue to be our core strength.
IBH’s outstanding subordinated debt as on March 31, 2020, stood
at ₹ 4,587 Crores. IBH’s subordinated debt is rated at ‘AA’ by Experienced Senior Management Team
CRISIL, ICRA and CARE Ratings; and at ‘AA+’ by Brickwork Ratings. IBH has a very strong senior and mid-management team which has
As per balance tenure of the debt, ₹ 4,048 Crores is considered helped build one of India’s leading Housing Finance Companies.
as Tier II capital for capital adequacy calculation under regulatory Their experience, business acumen and industry knowledge
guidelines. Tier II capital increases capital adequacy, conserving has been the key differentiators in our journey. Employees
equity capital and making its utilization more efficient. are an organisation’s greatest asset, and this is especially true
Investments of financial services companies. Business heads and heads of
various departments have been with the Company since the
The investments of the Company are monitored by the
commencement of their respective business lines. Experienced
Investments Committee of the Board of Directors. The committee
credit underwriters, sales’ and operations’ teams are reservoirs
helps the Company deploy excess funds from time to time to
of in-depth, many times location specific, market knowledge, and
generate optimal returns for the Company, while also reviewing all
represent valuable intellectual property.
investments and ensuring they comply with the investment policy
of the Company The Company has been able to provide steady career growth to
performing employees. Up-skilling and continuous training of
Human Resources
employees is a key focus area for the human resources team as the
At IBH, we believe that our employees are our most valuable Company believes in grooming talent internally to take on larger
assets, and we endeavour to help them realise their full potential. responsibilities. The Company has clear career progression plans
The Human Resource function is responsible for employee for senior and mid-level management employees, and invests in
recruitment, on-boarding, training, performance management, training them for the next phase of their career.
and in deciding compensation & benefits.
Stability in senior and mid-management teams has been an
The HR team also works at continuous enhancement of processes, important contributing factor to the Company’s growth and strong
bearing in mind the best practices in the industry in order to attract asset quality. Experience and stability of management also leads
the top talent across geographies and verticals. The department to consistency in communication with stakeholders, building
also works on developing and maintaining relationship with predictability and a reputation for reliability.
campuses across the country to hire new talent.
The Company recruits both directly from colleges and also hires
Digital adoption continues to be a major focus of our HR laterally from the industry, to bring on board capable resources
management practices. Digitisation of the HR function and that contribute to business growth. The Company has also focused
processes has enabled creation of an environment that fosters on developing a second line to the senior management team. The
learning.
62 |
middle and the senior management teams of the Company have Our Business Continuity and Disaster Recovery Plan ensured that
rich experience within the financial services industry, and form the critical business functions were available to customers even when
stable and reliable backbone of the Company. branches were not operational during the COVID-19 induced
complete lockdown phase.
Risk Management
Indiabulls Foundation
Your Company has a well-defined risk governance structure
which includes periodic reviews and close monitoring to enable At IBH, we are committed to our vision of inclusive growth. As a
building a sustainable business that takes care of the interests responsible corporate citizen, your company strives to positively
of all stakeholders. IBH has a clearly defined risk management impact communities, and leverages its reach and resources to
policy that lays down guidelines for all key operational areas. empower the underprivileged. During the year, we furthered
Comprehensive annual risk review exercises go towards continually the reach and impact of our Corporate Social Responsibility
updating the risk management policy. The policy also defines role [CSR] initiatives through our social development arm - Indiabulls
of the Company’s Risk Management Committee which oversees all Foundation.
aspects of the business, especially credit underwriting.
Indiabulls Foundation undertakes a wide gamut of activities in
Knowledgeable and trained credit officers are a lending company’s the areas of Health and Sanitation, Women’s Empowerment,
first line of defence against business risks. The Company has a Education, Skill Development and Sustainable Livelihoods, Rural
well-charted growth path for credit resources. New recruits are Development and Disaster Relief. The Foundation connects
groomed by senior managers and grow within the system handling philanthropic opportunities with demonstrated needs, and
incrementally nuanced cases. Through this, their credit authorities mobilises resources to create programmes that have tangible
get enhanced. Performance of the underwritten portfolio is closely outcomes and enable the marginalised sections of society to
monitored and constructive training is continuously imparted. improve their lives.
Career progress is assured for performing employees, average
Education
vintage with the company of mid-management credit managers
is now over seven years, and for many, Indiabulls is their first The Indiabulls Foundation Scholarship Program encourages
employer. Stability of the senior and mid-management teams of children from economically challenged backgrounds to pursue
the Company is one of the key reasons for the company’s stable higher education. Many student beneficiaries of the scholarship
asset quality and forms the bedrock of the Company’s approach have cleared the recently held UPSC exams and will go on to
to risk management. become officers in the various Indian Administrative Services
and serve the nation. 246 students were awarded scholarships
The Company has adequate system of internal controls for
in this financial year taking the total tally to 1,379 students since
business processes, with regard to operations, financial reporting,
inception.
fraud control, compliance with applicable laws and regulations,
etc. Regular internal audits and checks ensure that responsibilities Health and Sanitation
are executed effectively. The Audit Committee of the Board
of Directors actively reviews the adequacy and effectiveness Our community centric project, Jan Swasthya Kalyan Vahika
of internal control systems and from time to time suggests [mobile medical vans] provided free primary health care services
improvements for strengthening the existing control system in to over 12,41,083 under-privileged patients through 43 medically
view of changing business needs. - equipped vans. Since the inception of the programme, the fleet
has cumulatively catered to more than 39,70,383 patients in
IT Security and Customer Privacy Mumbai, Thane, Raigad and Palghar districts of Maharashtra.
Information is a valuable asset and information pertaining The foundation also operates 15 state-of-the-art, free of cost
to customers is also an immense responsibility. Safeguarding medical clinics across the country, which cater to the primary and
business information and IT Infrastructure from any kind of cyber preventive healthcare needs of the marginalised sections of the
security threat is a top priority, and this is done through effective society. During the year, the clinics treated more than 4,03,031
monitoring and implementation of risk mitigation measures. Our patients taking the cumulative patient count to more than
Information Technology Policy, Information Security Management 8,59,927 patients since inception.
System Framework and Cyber Security Policy include detailed
directions to ensure the protection of business information at all We also sponsored 2,200 cleft and palate surgeries of
levels. underprivileged children in the financial year 2019-20. These
surgeries were performed across different states of India such as
Backup and restore policy has been implemented to safeguard Andhra Pradesh, Assam, Meghalaya, Arunachal Pradesh, Haryana,
critical data. We undertake vulnerability assessment and Odisha, Karnataka, Uttar Pradesh, Uttarakhand, Gujarat, Madhya
penetration testing regularly through internal resources as Pradesh, Punjab and Kerala. Since inception, 6,000 underprivileged
well as external experts to test and improve the implemented children have benefitted from this program.
control measures. Your Company’s “Privacy Policy” ensures the
protection of customers’ personal information. The company The Indiabulls Foundation is also focused on combating
explicitly discloses the manner in which customer information is malnutrition, specifically among children, pregnant and lactating
collected, stored and used. The policy also ensures that the usage women. During the year, Paushtik Aahar, a nutrition supplement,
of customer information is in compliance with various statutory was successfully distributed to over 5,81,420 individuals.
and regulatory authorities’ requirements. One of our flagship initiatives, Kumud addresses the health and
sanitation requirements of women and adolescent girls from rural
| 63
areas by providing them with a year’s stock of sanitary products. Skill Development
Over 1,95,220 women including 50,000 women in the year under
We are committed to building an inclusive India by providing skill-
consideration have already benefitted from the programme.
based training to the underprivileged and help create sustainable
Water Wheel Project livelihood opportunities for them. In the current financial year, we
not only provided skill oriented training to 475 women and men
Shortage of potable water is a perennial problem for many of our
between the ages of 18-30 in multiple domains, but also helped
rural citizens. During the year, we continued our ‘Water Wheel’
them in securing jobs. Till date, 1,892 people have benefitted from
initiative and distributed over 10,761 water wheel drums to the
such training and placement initiatives.
underprivileged tribals of Raigad, Palghar and Thane districts
of Maharashtra benefitting more than 59,000 villagers in the Environment and Beautification
financial year 2019-20. The water wheel consists of a drum & a
To support the “Green Mumbai Clean Mumbai” campaign of
handle that can carry 45 litres of water per filling. Since inception
Municipal Corporation of Greater Mumbai, Indiabulls Housing
Indiabulls Foundation has benefitted more than 82,000 people by
Finance Limited has carried out beautification of key arterial roads
the distribution of 15,000 water wheels.
of Mumbai. IBH has also carried out beautification work of traffic
Solar Energy Plants islands, and beautifications of Mumbai’s seaside promenades.
Your company also maintains other traffic island parks that it has
With the intention of lighting up Tribal Ashram schools, Indiabulls
constructed in the past in Mumbai.
Foundation has installed Solar Energy Plants in 10 different tribal
ashram schools in Maharashtra. The schools were facing issues like At IBH, we are committed to reducing the environmental impact
blackouts, load shedding and heavy electricity crunch before the of our operations by minimising the usage of natural resources
start of the project. These plants will ensure 24 hours seamless and by striving to improve our operations in the context of our
electricity to these schools for approximately 25 years absolutely environmental, social and governance [ESG] objectives. Your
free of cost. These 10 solar plants will be benefitting over 16,000 company’s Environment Management System [EMS] framework is
students every year. Since inception Indiabulls Foundation has guided by ISO 14001:2015 which lay down processes and checks
installed 25 such solar plants in various tribal ashram schools to monitor our impact on the environment.
which have benefitted more than 32,000 students.
64 |
BUSINESS RESPONSIBILITY REPORT

Indiabulls Housing Finance Limited (IBHFL or the Company), was incorporated on May 10, 2005, under the Companies Act, 1956, and
obtained certificate for commencement of business on January 10, 2006, to enable it to carry on the business of housing finance.
In the initial years, lending operations were consolidated under the NBFC Indiabulls Financial Services Limited (IBFSL). With the housing
finance business gaining prominence and in line with the strategy of focusing on retail mortgage finance, IBFSL was reverse merged into
IBHFL. Since then, IBHFL serves as the parent lending entity and the Company ended FY2020 with a balance sheet size of over ₹ 1.02
lakh Crores.
IBHFL is particularly focused on extending home loans in the mid-income affordable housing segment. The Company has a pan-India
presence through a network of branches covering all major towns and cities across the country. The Company has a long-term credit
rating of AA from CRISIL, an S&P Global Company; ICRA, a Moody’s Investors Service Company; and CARE Ratings. The Company has
long-term credit rating of AA+ from Brickwork Ratings. The Company also has the highest short-term credit rating of A1+ from CRISIL and
CARE. The Company is ISO certified for its systems and processes.
IBHFL offers loan products such as home loans, loans against property, residential construction finance as well as lease rental discounting.
It offers loans against property to small and mid- sized businesses, partnership firms, self-employed professionals, and private or closely
held companies, as well as home loans for non-residential Indians and persons of Indian origin. IBHFL has a pan India branch network
through which it services over 3 lakh customers, supported by a workforce of over 5,000 employees.
IBHFL’s key subsidiaries include Indiabulls Commercial Credit Limited, Indiabulls Asset Management Company Limited, Indiabulls
Collection Agency Limited, Ibulls Sales Limited, Indiabulls Capital Services Limited, Indiabulls Advisory Services Limited, Indiabulls
Insurance Advisors Limited, Indiabulls Trustee Company Limited, Indiabulls Holdings Limited, and Indiabulls Asset Holding Company
Limited. Its step down subsidiaries include Nilgiri Financial Consultants Limited, Indiabulls Venture Capital Management Company
Limited and Indiabulls Asset Management Mauritius (Foreign Company).
The Company has drawn up this Business Responsibility Report based on the “National Voluntary Guidelines on Socio-Economic and
Environmental Responsibilities of Business” published by the Ministry of Corporate Affairs, Government of India in 2011, SEBI (Listing
Obligations and Disclosure Requirements) Regulation, 2015 and the circulars issued by SEBI in this regard. The subsidiary companies
have their own Business Responsibility (BR) initiatives.
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) of the Company L65922DL2005PLC136029

2. Name of the Company Indiabulls Housing Finance Limited
3. Registered office address M - 62 & 63 First Floor, Connaught Place New Delhi – 110 001
4. Corporate office address (a) ‘Indiabulls House’, Plot No. 448-451, Udyog Vihar, Phase- V,
Gurugram – 122 016, Haryana
(b) “Indiabulls House”, Indiabulls Finance Centre, Tower 1,
Elphinstone Mills, Senapati Bapat Marg, Mumbai - 400 013
5. Website https://www.indiabullshomeloans.com/
6. E-mail id investor.relations@indiabulls.com
7. Financial Year Reported April 1, 2019 to March 31, 2020
8. Sector(s) that the Company is engaged in The Company is engaged in business of a Housing Finance
Institution without accepting public deposits and its regulated by
National Housing Bank.
9. List three key products/services that the Company provides The Company offers loan products such as home loans, loans
against property, residential construction finance as well as lease
rental discounting. All other activities of the Company revolve
around its main business.
10. Total number of locations where business activity is As per the applicable regulations all lending activities are done
undertaken by the Company only in India.
a) Number of International Locations (Provide details To cater to non-resident Indians, the Company has overseas
of major 5) representative offices in London and Dubai.
b) Number of National Locations The Company has PAN-India presence. As on March 31, 2020, the
Company has total 141 branches in India.
11. Markets served by the Company – Local/State/National/ The Company has PAN-India presence. As on March 31, 2020, the
International Company has total 141 branches.
| 65
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up Capital (₹) 85.51 Crores

2. Total Turnover (₹) 11,399.23 Crores
3. Total profit after taxes (₹) 2,159.91 Crores
4. Total Spending on Corporate Social Responsibility (CSR) as 80.23 Crores, More than 2% of the average net profits during
percentage of profit after tax (%) the last three Financial Years computed as per Section 198 of the
Companies Act, 2013.
5. List of activities in which expenditure in 4 above has been Please refer Annexure-3: Annual Report on CSR Activities, to
incurred:- Board’s Report for details on CSR initiatives undertaken by the
Company.
SECTION C: OTHER DETAILS
1. Does the Company have any Subsidiary Company/ Companies?
The Company had 13 subsidiaries including one foreign subsidiary as on financial year ended March 31, 2020. The details of the
subsidiaries are well detailed in Annexure 4 to Board’s Report i.e. Form MGT-9: Extract of Annual Return.
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the
number of such subsidiary company(s).
The subsidiaries of the Company are separate legal entities and follow BR initiatives as per rules and regulations as may be
applicable.
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR
initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]
No. The Company has not mandated any supplier, distributor etc. to participate in the BR initiatives of the Company.
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
a) Details of the Director(s) responsible for implementation of the BR policy
1 DIN 00010894 02698115 03341114

2 Name Mr. Gagan Banga Mr. Ajit Kumar Mittal Mr. Ashwini Omprakash Kumar
3 Designation Vice-Chairman, Managing Executive Director Deputy Managing Director
Director & CEO
b) Details of the BR head
1 DIN 02016992
2 Name Mr. Sachin Chaudhary
3 Designation Executive Director
4 Telephone No. +91- 124 – 6681212
5 E-mail ID investor.relations@indiabulls.com
2. Principle-wise as per NVGs BR Policies
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) released by the
Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are as below:
1. Businesses should conduct and govern themselves with ethics, transparency and accountability;
2. Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle;
3. Businesses should promote the well-being of all employees;
4. Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised;
5. Businesses should respect and promote human rights;
66 |
6. Businesses should respect, protect and make efforts to restore the environment;
7. Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner;
8. Businesses should support inclusive growth and equitable development; and
9. Businesses should engage with and provide value to their customers and consumers in a responsible manner.
Details of compliance (Reply in Y/N):
No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/ policies for.... Y Y Y Y Y Y N Y Y
2. Has the policy being formulated Y Y Y Y Y Y - Y Y
in consultation with the relevant Refer Refer Refer Refer Refer Refer Refer Refer
stakeholders? Note Note Note Note Note Note Note Note
1 1 1 1 1 1 1 1
3. Does the policy conform to any national Y Y Y Y Y Y - Y Y
/ international standards? If yes, specify? Refer Refer Refer Refer Refer Refer Refer Refer
(50 words) Note Note Note Note Note Note Note Note
1 1 1 1 1 1 1 1
4. Has the policy being approved by the Y Y Y Y Y Y - Y Y
Board? If yes, has it been signed by MD/
owner/ CEO/ appropriate Board Director?
5. Does the company have a specified Y Y Y Y Y Y - Y Y
committee of the Board/ Director/ Official
to oversee the implementation of the
policy?
6. Indicate the link for the policy to be viewed Y Y Y Y Y Y - Y Y
online? Refer Refer Refer Refer Refer Refer Refer Refer
Note Note Note Note Note Note Note Note
2 2 3 2 3 3 2 3
7. Has the policy been formally Y Y Y Y Y Y - Y Y
communicated to all relevant internal and
external stakeholders?
8. Does the company have in-house structure Y Y Y Y Y Y - Y Y
to implement the policy/ policies?
9. Does the Company have a grievance Y Y Y Y Y Y - Y Y
redressal mechanism related to the
policy/ policies to address stakeholders’
grievances related to the policy/ policies?
10. Has the company carried out independent Y Y Y Y Y Y - Y Y
audit/ evaluation of the working of this Refer Refer Refer Refer Refer Refer Refer Refer
policy by an internal or external agency? Note Note Note Note Note Note Note Note
4 4 4 4 4 4 4 4
Note 1: The policies have been developed based on the best practices or as per the regulatory requirements and through
appropriate consultation with relevant stakeholders.
Note 2: May include a combination of internal policies of the Company which are accessible to all internal stakeholders and the
policies are placed on the Company’s website at https://www.indiabullshomeloans.com/.
Note 3: The policies of the Company are internal documents.
Note 4: The policies are internally evaluated by various department heads, business heads and the management.
Note 5: Details on each of the principles are provided in Section E under-mentioned.
3. Governance related to BR
The Board ensures Business Responsibility at the Bank and comprises of 10 directors, of which 5 are Executive Directors and the
remaining 5 are Independent Directors.
| 67
(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the
Company. Within 3 months, 3-6 months, Annually, More than 1 year
The BR performance of the Company is periodically assessed by the BR Head during the year.
(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is
published?
Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time-to-
time), the Company publishes a Business Responsibility Report as an Annexure to the Board’s Report on an annual basis.
Business Responsibility Report of the Company is available on the website of the company viz. https://www.indiabullshomeloans.com/
SECTION E: PRINCIPLE-WISE PERFORMANCE
Principle 1: Businesses should conduct and govern themselves with ethics, transparency and accountability
Ethics, transparency and personal accountability are core values of the Company. It focuses on high standards of corporate governance,
in the conduct of its business. It has a zero tolerance for bribery and corruption and strives to build and maintain relationships with
its lenders, borrowers, shareholders and other stakeholders in a fair, transparent and professional manner. This helps promote moral
behavior, act as a guideline for ethical decision-making, enhance reputation, prevent negative legal consequences, encourage positive
relationships, and prevent discrimination or harassment.
The Company adheres to all applicable governmental and regulatory rules in order to ensure complete transparency and accountability
in all business practices. Any and all breaches of Company guidelines are viewed very seriously by the Management, who ensures that
appropriate disciplinary action is taken.
The Company has constituted various committees such as: Audit Committee, Nomination & Remuneration Committee, Stakeholders
Relationship Committee, Compensation Committee, Risk Management Committee, Asset Liability Management Committee, Investment
Committee, Customer Grievance Committee, Corporate Social Responsibility Committee, Management Committee, Bond Issue
Committee, Reorganisation Committee and Internal Compliant Committee. These committees meet periodically to supervise, review
and advice on the relevant/respective matters.
Code of Conduct
With the objective of enhancing the standards of governance, the Company has formulated and adopted a Code of Conduct & Ethics
for its Board Members and Senior Management team. The Code is placed on the website of the Company, which provides for ethical,
transparent and accountable behavior by its Directors and Senior Management team.
The Employee Code of Conduct provides the framework within which the Company expects its business operations to be carried out and
lays down the standards and principles, to be followed by all its employees. Failure to comply with the Code leads to disciplinary action,
including dismissal from the services of the Company.
All employees are handed over a copy of the Employee Code of Conduct on their first day of joining the Company, as a part of the
employee joining kit. Additionally, the contents of the Code of Conduct are also shared in detail with the employees through a specific
module that forms part of the HR session during the employee induction training program.
The Company has also formulated and adopted various other codes and policies including Fair Practices Code, Code of Practices and
Procedures for Fair Disclosure of Unpublished Price Sensitive Information, Policy on Protection of Women Against Sexual Harassment
at Workplace, Code of Conduct for Prevention of Insider Trading, Know Your Customer Policy and Investment Policy, in terms of laws
applicable to its business, which are applicable to all its employees / directors for enforcement of ethical conduct from a governance,
regulatory and risk management perspective.
Stakeholder Complaints
The Company is committed to providing effective and prompt service to all its stakeholders. The central operations team along with the
call center records and redresses grievances and feedback from customers. Complaints and grievances are addressed in a time-bound
manner. Regular analysis of customer issues is conducted and where required corrective measures are taken in the Company’s processes.
Designated senior personnel at individual branches are responsible for ensuring efficient and effective resolution of complaints within
the prescribed turnaround time. All complaints are centrally monitored at the Head Office by the Operations team.
The Company has in–built Grievance Redressal Policy with escalation mechanism wherein complaints are escalated to the level of
Branch heads, Head Customer Care and National Head Operation/Principal Officer, Compliance. Complaints forwarded by regulatory and
supervisory authorities are tracked separately. The grievance redressal procedure recommended by National Housing Bank (NHB) is also
available on the Company website for the benefit of its customers.
During the financial year 2019-20, the Company had received 639 complaints from its stakeholders and 0 complaints were outstanding
at the beginning of the year. 100% of the complaints outstanding and received during FY 2019-20, were resolved during the year.
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The Company submits a periodic status of complaints received, redressed and outstanding from its stakeholders along with the nature
of complaints and their mode of redressal to the Board constituted Customer Grievance Committee and Stakeholders Relationship
Committee.
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
Focus on Technology: e-Home Loans
The Company launched eHomeLoans in June 2016. With the advent of technology in the banking sector almost all loan products with
the exception of home loans were being delivered via digital channels. In a first for the industry, Indiabulls developed and released
eHome Loans, a cutting edge, technology enabled, paperless, end-to-end home loan fulfillment channel from the customer’s mobile or
computer. The Company’s eHome Loans offers unmatched customer convenience and other manifold advantages both to the Company
and its customers, as it substantially reduces the paperwork and time to process the application and disbursement of loan.
Environmental Standards
The Company continuously aims to reduce the impact on the environment by optimizing the usage of various resources. The Company
works at minimizing its carbon footprint and there is particular focus on reduced resource usage. The Company has been able to reduce
energy consumption by using star rated appliances where possible and also through the replacement of CFL lights with LED lights.
Monitoring resource usage, improved process efficiency, reduced waste generation and disposal costs have also supported the cause.
The Company is ISO 14001:2015 certified for its Environmental Management Systems (EMS). ISO 14001 is an iterative framework that
helps it monitor adherence to environmental performance standards and also seeks to continuously improve upon it. The framework
helps the Company document its process from an environmental perspective and importantly, gives it a means to measure and minimize
the environmental impact of its operations. The Company has in place a stringent EMS that helps assess the environmental cost of the
Company’s services and activities, and seeks to reduce or eliminate the negative impact and increase their positive effects.
The Company’s initiative on digitization has led to the creation of a Customer Portal where Customers can access details in relation to
their loan on their laptops and mobile devices without using paper. Our adaption of e-Receipts has ensured that we issue receipts either
in the form of SMS or e-mail thus saving on paper.
In a bid to reduce the Company’s carbon footprint, video conference systems have been set up at key office locations to cut down on
unnecessary travel.
The Company continues to explore collaboration with partners that provide solutions for conservation of energy and resources. On this
front, the Company has also begun work with real estate developers that promote the use of innovative technologies such as green
buildings and other energy efficient measures for construction of their projects.
Resource Savings
The Company has undertaken initiatives and energy efficient measures at its office premises such as use of LED light fittings, provision of
centralized waste collection, etc. At most of its offices across India, the CFL light fittings have been shifted to LED light fittings to conserve
energy.
In an endeavor for quick and paperless services, the Company promotes the use of electronic means of communication with its
shareholders by sending electronic communication for confirmation of payments and such other purposes. The Company also encourages
the use of electronic mode of payment to and from all its stakeholders. Soft copies of the annual report 2018-19 along with the notice
convening the 14th Annual General Meeting and the dividend e-payment advice, dividend unpaid reminder letters were sent to over
778,774 shareholders so as to minimize the usage of paper.
Principle 3: Businesses should promote the well-being of all employees
Equitable Employment
The Company’s employee strength as on March 31, 2020 was 5,405, out of which 752 were women. As at March 31, 2020, the male:
female ratio was 86:14. The Company has always advocated a business environment that favours the concept of equal employment
opportunities for all without any discrimination with respect to caste, creed, gender, race, religion, disability or sexual orientation.
The Company provides a workplace environment that is safe, hygienic, and humane which upholds the dignity of its employees. The
Company does not use child labour directly or indirectly in any of its offices.
Enabling a Gender Friendly & Safe Workplace
For IBHFL, safety of its employees is of paramount importance and as a good corporate citizen, it is committed to ensuring safety of all
its employees at the work place.
The Company has formulated and adopted a Gender Sensitization program and has constituted an Ethics Cell and Complaint Committee.
The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and
redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the Rules thereunder.
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Also, to ensure confidentiality, a dedicated e-mail address has been created for employees to report complaints pertaining to sexual
harassment at the workplace. The complaints reported on the designated e-mail are accessible by the Chairman and the Ethical Cell
only. Mechanisms have been established to ensure that complaints received by the Ethical Cell are dealt with promptly, sensitively,
confidentially and in the most judicious and unbiased manner. During the period under review, no complaint was received.
As a Company we give utmost importance to our women employees’ safety and as part of it we have tied-up with Ola for a corporate
paid cab service to all women employees who leave office after 8:00 PM.
Policies for Employee Grievances
The Company believes in smooth and effective communication to ensure better flow of information and understanding amongst its
employees. Any employee, irrespective of hierarchy, has access to the members of senior management for sharing ideas, suggestions
or even personal grievances.
The Company has strengthened its vigilance mechanism by adopting a Whistle Blower Policy. The said policy which has been uploaded
on the Company’s website, and also communicated to all its employees, aims to promote good governance, instill faith and empower all
stakeholders to fearlessly voice their concerns.
Gender Inclusion
The Company ensures that a gender inclusive environment is provided. To create an inclusive work culture for women, the awareness for
the same is spread through special workshops and seminars. Wherever required, women employees have been provided with laptops
with the view that they can work from home. Various activities and initiatives are undertaken round the year: health check-up vouchers
provided, self-defense training sessions for women employees, sessions on breast cancer awareness etc.
Work-Life Balance
The Company’s policies are structured around promoting work- life balance which ensures improved employee productivity at work. We
give our employees the option of flexible working hours through our Flexi-time policy to enable them strike a better work-life balance.
This culture permits our employees to pursue their aspirations, passions and shape their professional and personal growth.
The Company’s Paternity Leave Policy entitles male employees who are expecting/adopting a child to leave of 10 days. Also all our female
employees are entitled to paid maternity leave for up to 26 weeks, including both pre-delivery and post-delivery leaves. Commissioning
mothers and adopting mothers are entitled to a maternity leave of up to 12 weeks. We provide our employees with 32 annual leaves
and also have a mandatory leave policy mandating employees to avail of continuous 10 days of leave in a year, which gives them quality
time off from work and help them to relax and rejuvenate.
Employee Engagement
The Company firmly believes that highly engaged employees are more productive. Besides work, the Company encourages its employees
to regularly participate in sports, outings, get-togethers, milestone celebrations, festivities, and team building programs. The Company
has a separate budgetary allocation for this purpose.
Development of Employees
The Company believes in the all-round development of its employees. Job specific knowledge gaps, skills and competencies are identified
during the performance appraisal process. Through constant learning and development interventions; the Company ensures that its
employees are adequately trained in functional and behavioural skills to sustain high standards of service. The Company nominates its
employees for self-development and leadership programs for further enhancing their competencies and skill-sets.
Digitization of the HR functions has enabled creation of an environment that fosters learning and growth. As a Company we realize the
importance of continuous learning and regular workshops are held covering key processes and procedures, customer service standards,
underwriting process, collection, credit disbursals, treasury functions, soft skills and behavioural aspects. For our vast sales force we
launched a movie-based training program - ‘The Birth of a Salesman’ and will soon have an online learning platform built around
“gamified” modules to make them more involving.
Learning and development needs are also identified on the basis of internal audit reports as well as customer feedback. On-the- job
training, job rotation or training through various programs – internal, external are offered to employees to upgrade their competencies.
Mentoring Program
The mentoring program formulated by the Company ensures that all new employees integrate into its working culture and value systems.
Such programs helps new entrants understand and blend with its existing employees in a seamless manner.
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized
Inclusive Credit Approach
In its eighteen plus years of operations, the Company has been providing home loan products that cater to the salaried and self-
employed sections in the organized sector. Housing requirements, for customers from both formal and informal segments, has been
growing rapidly largely owing to the pace of urbanization and migration of people from rural to urban areas.
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In FY17, the Company launched “Smart City Home Loans in tier-II and tier-III towns through a lean branch hub-and-spoke model that
allows for expansion into the hinterlands where full- fledged brick-and-mortar offices would have not been financially viable.
Corporate Social Responsibility
The Company strives to approach its CSR activities with the goal to identify and work across a range of social initiatives that have a long-
term sustainable impact. The Company has endeavored to choose projects keeping in mind the Human Development Index norms which
address human resource development in areas of Sanitation, Health, Education, Nutrition, Renewable Energy, and Rural Development.
The details of CSR activities undertaken by the Company are provided in the Annual Report.
Employee Welfare & Participation
To encourage employees to maintain and lead a healthy life, employee family get-togethers, sports events and medical check-ups were
organised across various branches.
Principle 5: Businesses should respect and promote Human Rights
The Company complies and adheres to all the human rights laws, guidelines of the Constitution of India, national laws and policies. The
Company treats all its stakeholders and customers with dignity, respect and due understanding. The Company takes care to be just,
patient and understanding while dealing with customers that are late on their loan repayments. The Company has put in place a code of
conduct where customers are treated with fairness. Customers who have difficulty in making regular payments are counseled and given
opportunities to recover from difficulties. In instances where the Company resorts to legal action, care is taken to treat customers and
their family with dignity and respect. Employee training programs lay emphasis on this aspect. Any complaints and grievances pertaining
to behavioral issues are attended to personally by senior officers.
Principle 6: Businesses should respect, protect and make efforts to restore the environment Green Initiatives
The Company promotes ecological sustainability and green initiatives, and adopts energy saving mechanisms, by encouraging its
employees, customers and all its other stakeholders to use electronic medium of communication and to reduce usage of papers as much
as possible.
We have also started an initiative where we are trying to reduce the use of plastic in our offices to reduce our carbon footprint. We want
to make our office environments plastic-free and we’re confident of achieving this.
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
The Company recognizes that the housing and real estate industry play an important role in the Indian economy as this industry is the
second largest employment generator after agriculture. The Company will continue to support and advocate for the development of the
housing sector, and work towards promoting home ownership.
The Company continues to makes recommendations/ representations before various regulators, forums and associations relevant to
promote the housing industry.
Principle 8: Businesses should support inclusive growth and equitable development
As a responsible corporate citizen, the Company has undertaken various social welfare initiatives for promoting Sanitation, Health,
Education, Nutrition, Renewable Energy, and Rural Development. Details of CSR activities undertaken by the Company are provided in
the Annual Report.
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner Customer
Relationship Enhancement and Managing System
The Company is committed to providing effective and prompt service to all its stakeholders. It has in place a central operation team to
record and redresses the grievances/feedback from its customers which helps in ensuring standard operating procedure and maintaining
service standards.
The Company has identified senior personnel at all its branches and made them responsible for ensuring efficient and effective resolution
of complaints within the prescribed turnaround time. All complaints are monitored at the Head Office by its Operations team.
The Company has an in–built Grievance Redressal Policy with escalation mechanism wherein complaints are escalated to the level of
Branch heads, Head Customer Care and National Head Operation/Principal Officer, Compliance. Complaints forwarded by regulatory and
supervisory authorities are tracked separately. A grievance redressal procedure recommended by National Housing Bank (NHB) is also
available on the Company website along with contact details of Grievance Redressal Officer for the benefit of its customers.
Customers are now also able to directly submit their grievances through our eHome Loans application and get immediate assistance. The
Company has created a chat-bot, accessible from the website which services customer queries.
The Company aims to reduce the number of grievances, attain operational excellence and ensure continuous improvement by doing
periodical root-cause analysis (RCA) of all the received grievances. In the scope of lending operations, the Company has been certified
for ISO 9001:2015 which focuses on the overall quality management of the process along with grievance redressal mechanism and ISO
10002:2014 which helps us to maintain a management system for customer complaint handling.
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Transparent Communication
The Company strives to ensure that transparent, correct and relevant information, pertaining to its products and services, is disseminated
through its advertising material and the information displayed on the digital platforms owned by the Company. The Company encourages
responsible and responsive communication towards all its stakeholders be it customers, media, investors, analysts, regulatory authorities,
vendors, etc.
The Company is an avid proponent of true and fair advertising and as such, discourages all kinds of means and activities that are
unethical, abusive, derogatory or anti-competitive. All the communication material released by the Company adheres to the mandated
regulatory requirements. The Company has formulated the Fair Practices Code. A copy of the said code is available on the Company’s
website and at all its offices. The Company has complied with all the advertising norms applicable to the Company.
The important product attributes, relevant information about the products and services being offered, fees and charges, benchmark
interest rates and other important notifications like Most Important Terms & Conditions and KYC documents are displayed prominently
in each of the Company offices. This information is available on the Company’s website as well.
The Company is extending its presence to various social and digital platforms to engage and connect with existing customers and also
to reach out to newer audiences through constant communication, which is in consonance with its brand values and the prescribed
regulatory framework.
The performance and financials of the Company are disclosed to the stock exchanges, BSE and NSE, and is also uploaded on the
Company’s website.
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REPORT ON CORPORATE GOVERNANCE

1. THE COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE
Indiabulls Housing Finance Limited (“the Company”) is committed towards achieving the highest standards of Corporate
Governance by staying true to its core values of Customer First, Transparency, Integrity and Professionalism. The Company
continually works towards implementing robust, resilient and best-in-class corporate practices in every facet of its operations,
and in all spheres of its activities, thereby generating higher returns and maximizing shareholder value.
The Company also engages in a credible and transparent manner with all its stakeholders and clearly communicates its long-term
business strategy. All its actions are governed by its values and principles, which are reinforced at all levels of the Company.
As one of the largest housing finance companies in the country, the Company primarily focuses on home loans in the mid-income
housing segment and in making available hassle-free, convenient, and customer centric home loan offerings to aspiring home
buyers, thereby encouraging home ownership. Its transparent and robust business practices have helped the Company build
strong relationship with its investors, customers, employees, shareholders and lenders.
The Company believes that success requires the highest standards of corporate behavior and engagement with all of its
stakeholders. This is the path to consistent, competitive, profitable and responsible growth, and for creating long-term value for
its shareholders, its employees and business partners. The Board of Directors (‘the Board’) is responsible for and is committed
to sound principles of Corporate Governance of the Company. The Board plays a crucial role in overseeing how the management
serves the short and long-term interests of shareholders and other stakeholders. This belief is reflected in its governance practices,
under which it strives to maintain an effective, informed and independent Board. The Company keeps its governance practices
under continuous review and benchmark itself to best practices.
The COVID-19 pandemic has caused an unprecedented health and economic crisis across the globe. The severity of its impact on
economy and day-to-day life is still evolving. Companies are having to be nimble-footed and continuously evolve their strategies
to deal with the emergent challenges. The Board has played a critical role helping the Company navigate the issues brought on by
the COVID-19 pandemic. The Board is responsive and their depth of experience helps the management team evolve measured
responses to issues that come up. The board guided the management in implementing cost rationalization measures at every
level and across every function of the Company. The senior management of the Company has decided to lead the efforts on
expense control by volunteering to take pay cuts up to an average of 35% for the current financial year.
The Company is in compliance with the Housing Finance Companies – Corporate Governance (National Housing Bank) Directions,
2016 and the applicable SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR).
2. BOARD OF DIRECTORS (BOARD)
(A) Composition and size of the Board
The Company has a broad based Board of Directors, constituted in compliance with the Companies Act, 2013, Listing
Agreement executed by the Company with the Stock Exchange, SEBI LODR and in accordance with highest standards of
Corporate Governance in its management, which ensures an appropriate mix of Executive/Non-Executive, Woman Director
and Independent Directors with demonstrated skill sets and relevant experience. The Board members have professional
knowledge and experience, in diverse fields viz. finance, banking, public policy and legal / judicial, thereby bringing about
an enabling environment for value creation through sustainable business growth.
Presently, as on the date of this report, the Board consists of eleven directors, four of whom including the Vice-Chairman,
Managing Director and CEO are Executive Directors. Mr. Sameer Gehlaut, founder director is the Non-Executive, Non-
Independent Director. The remaining six directors Mr. Subhash Sheoratan Mundra, Mr. Satish Chand Mathur, Mr. Achuthan
Siddharth (appointed as Non-Executive Independent Director w.e.f. July 3, 2020), Justice Mrs. Gyan Sudha Misra, Mr.
Shamsher Singh Ahlawat, Mr. Prem Prakash Mirdha, are Non-Executive Independent Directors. The Chairman, Mr. Subhash
Sheoratan Mundra, being a Non-Executive Independent Director, the number of Independent Non-Executive Directors on
the Board is above 50% of the total Board strength. No Director is related to any other Director on the Board. The Board
comprises directors that bring a wide range of skills, expertise and experience which enhance overall board effectiveness.
The Board has identified skills and domain expertize required by the Directors of the Company which includes Banking &
Finance, Business Strategy, Corporate Governance, Corporate Social Responsibility, Foreign Exchange, Human Resources,
Information Technology, Legal, Marketing, Operations and Process Optimization, Policy Making, Recovery, Regulatory
Compliances, Risk Management, Stakeholder Management, Taxation, Treasury and Value Creation. The Directors of the
Company have mapped their skills based on the board skill matrix.
Details of Directors, directorship in listed companies, number of directorships held by them in other companies and
also the number of their memberships and chairmanships on various Board Committees, including skill sets/ expertise/
competencies/practical knowledge, as on March 31, 2020, are as under:
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Sl. Name of the Nature of Special Knowledge/ Names of the Category of No. of No. of No. of Memberships/
No Director Office Practical Experience/ other listed directorship Directorships Directorship Chairmanships in Board
Skills/ Expertise/ entities where in other listed in other in other Committees of various companies
Competencies the person is a entities where Listed Companies* (including this Company)**
director the person is a Companies
director Memberships Chairmanships
1. Mr. Sameer Founder and Policy Making, Banking & Indiabulls Real Non-Executive 2 9 Nil Nil
Gehlaut Executive Finance, Business Estate Limited Chairman
(DIN: 00060783) Chairman Strategy, Risk Indiabulls Ventures Non-Executive
(Refer Note 1) Management, Corporate Limited Chairman
Governance, Value
Creation
2. Mr. Gagan Banga Vice- Banking and Finance, Indiabulls Ventures Non-Executive 2 2 Nil Nil
(DIN: 00010894) Chairman, Business Strategy, Limited Director
Managing Risk Management, Indiabulls Non-Executive
Director & Treasury, Foreign Consumer Finance Director
CEO Exchange, Recovery, Limited (Formerly
Marketing, Corporate known as IVL
Governance, Corporate Finance Limited)
Social Responsibility, ***
Stakeholder Management,
Operations and Process
Optimization
3. Mr. Ajit Kumar Executive Taxation, Regulatory Indiabulls Non-Executive 3 5 4 1
Mittal (DIN: Director Compliances, Integrated Services Director
02698115) Business Strategy, Risk Limited (Formerly
Management, Marketing, known as SORIL
Corporate Governance, Holdings and
Corporate Social Ventures Limited)
Responsibility, Stakeholder Indiabulls Non-Executive
Management, Operations Commercial Credit Chairman
and Process Optimization Limited ***
Indiabulls Non-Executive
Consumer Finance Director
Limited (Formerly
known as IVL
Finance Limited)
***
4. Mr. Ashwini Executive Banking and Finance, N.A. N.A. Nil 1 1 Nil
Omprakash Director Business Strategy,
Kumar (DIN: (Deputy Risk Management,
03341114) Managing Treasury, Foreign
Director) Exchange Recovery,
Marketing, Corporate
Governance, Corporate
Social Responsibility,
Optimization
5. Mr. Sachin Executive Human Resources, N.A. N.A. Nil 2 Nil Nil
Chaudhary (DIN: Director Information Technology,
02016992) Business Strategy, Risk
Management, Marketing,
Corporate Governance,
Corporate Social
Responsibility,
Optimization
74 |
Sl. Name of the Nature of Special Knowledge/ Names of the Category of No. of No. of No. of Memberships/
No Director Office Practical Experience/ other listed directorship Directorships Directorship Chairmanships in Board
Skills/ Expertise/ entities where in other listed in other in other Committees of various companies
Competencies the person is a entities where Listed Companies* (including this Company)**
director the person is a Companies
director Memberships Chairmanships
6. Justice Gyan Non- Legal, Risk Management, Olectra Greentech Non Executive- 3 1 4 1
Sudha Misra Executive Corporate Governance, Limited Independent
(Retd. Justice Independent Operations and Process Indiabulls Real Director
Supreme Court Director Optimization Estate Limited Non Executive-
of India) (DIN: Indiabulls Independent
07577265) Integrated Services Director
Limited (Formerly Non Executive-
known as SORIL Independent
Holdings and Director
Ventures Limited)
7. Mr. Shamsher Non- Risk Management, Indiabulls Real Non-Executive- 4 3 9 4
Singh Ahlawat Executive Corporate Governance, Estate Limited Independent
(DIN: 00017480) Independent Operations and Process Indiabulls Director
Director Optimization Integrated Services Non-Executive-
Limited (Formerly Independent
known as SORIL Director
Holdings and
Ventures Limited)
Indiabulls Non-Executive-
Commercial Credit Independent
Limited *** Director
Indiabulls Non-Executive-
Infraestate Independent
Limited*** Director
8. Mr. Prem Prakash Non- Risk Management, SORIL Infra Non-Executive- 2 2 7 2
Mirdha (DIN: Executive Corporate Governance, Resources Limited Independent
01352748) Independent Operations and Process Indiabulls Director
Director Optimization Commercial Credit Non-Executive-
Limited *** Independent
Director
9. Mr. Subhash Non- Risk Management, BSE Limited Non-Executive 1 4 3 Nil
Sheoratan Executive Corporate Governance, Independent
Mundra Independent Operations and Process Director
(DIN: 00979731) Director Optimization
(Refer Note 2)
10. Mr. Satish Chand Non- Risk Management, Tilaknagar Non-Executive 1 3 Nil Nil
Mathur (DIN: Executive Corporate Governance, Industries Limited Independent
03641285) Independent Operations and Process Director
Director Optimization
(Additional
Director)
Note 1: W.e.f. August 12, 2020, Mr. Sameer Gehlaut has relinquished the office of Executive Chairman of the company and
has been re-designated as Non-Executive Non-Independent Director of the Company.
Note 2: W.e.f. August 12, 2020, the Board has unanimously appointed Mr. Subhash Sheoratan Mundra, formerly the Deputy
Governor of Reserve Bank of India and an Independent Director, as Non-Executive Chairman of the Company.
*Includes directorship(s) held in foreign companies & private limited companies and Companies under section 8 of the
Companies Act, 2013.
**Only memberships of the Audit Committee / Stakeholders’ Relationship Committee in various public limited companies
and chairmanship of the Audit Committee / Stakeholders’ Relationship Committee in various equity listed limited companies,
including this listed company are considered, as per Regulation 26 of the SEBI LODR.
***Only debt securities of these companies are listed on NSE & BSE.
The Board do hereby confirms that all the present Independent Directors of the Company fulfill the conditions specified in
the SEBI LODR and are independent of the management of the Company.
The Board had accepted all recommendations of committees of the Board which are mandatorily required, during the
financial year 2019-20.
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None of the Non-Executive Directors held any equity share and/or convertible security of the Company during the financial
year ended March 31, 2020, except Mr. Prem Prakash Mirdha who is holding 1,100 Equity shares of the Company.
The Company has familiarization programme for Independent Directors with regard to their roles, responsibilities in the
Company, nature of the industry in which the Company operates, the business model of the Company etc. The familiarization
programme along with details of the same imparted to the Independent Directors during the year are available on the
website of the Company (https://www.indiabullshomeloans.com/uploads/news/IHFL-Board_Familiarisation_programmes.
pdf, https://www.indiabullshomeloans.com/uploads/downloads/ihfl-details-of-familiarization-programmes-imparted-to-
ids-0172381001502456199-0007959001552484588.pdf).
The current tenure of five years of Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892), as Independent Director of the
Company, came to an end effective from October 26, 2019 and the necessary form DIR-12 for his cessation from the Office
of Independent Director had been filed with the Office of The Registrar of Companies, NCT of Delhi & Haryana.
(B) Number and Dates of Board Meetings held, attendance of Directors thereat and at the last AGM held
The Board meetings of the Company are held in a highly professional manner, after giving proper notice, Board papers,
agenda and other explanatory notes / relevant information to each of the directors of the Company, well in advance. At
least one meeting is held in every quarter, to review the quarterly performance and the financial results of the Company.
Senior management including the CFO, CRO and Group Head – Corporate Secretarial are invited to attend the board
meetings so as to provide additional inputs on the items being discussed by the Board. At the board meetings, the Executive
Directors and senior management make presentations on various matters including the financial results, operations related
issues, risk management, the economic and regulatory environment, compliance, investors’ perceptions etc.
During the FY 2019-20, the Board met 8 (Eight) times. Meetings were held on April 5, 2019, April 24, 2019, May 3, 2019, July
25, 2019, August 6, 2019, October 14, 2019, November 6, 2019 and February 5, 2020. During the year, separate meeting
of the Independent Directors was held on March 20, 2020, without the attendance of non-independent directors and the
members of the management. All Independent Directors attended the said meeting. At the meeting, the independent
directors assessed the quality, quantity and timeliness of the flow of information between the Company’s management
and the board.
The last Annual General Meeting of the Company was held on August 28, 2019.
Attendance of Directors at the Board Meetings held during the FY 2019-20 and at the last Annual General Meeting are as
under:
Sr. Name of the Director No. of Board Attendance at the

no. meetings attended last AGM
1. Mr. Sameer Gehlaut (DIN: 00060783) 7* No
2. Mr. Gagan Banga (DIN: 00010894) 8 No
3. Mr. Ajit Kumar Mittal (DIN: 02698115) 8 Yes
4. Mr. Ashwini Omprakash Kumar (DIN: 03341114) 8 Yes
5. Mr. Sachin Chaudhary (DIN: 02016992) 8 Yes
6. Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892) 6** No
7. Mr. Shamsher Singh Ahlawat (DIN: 00017480) 8 Yes
8. Mr. Prem Prakash Mirdha (DIN: 01352748) 5*** Yes
9. Justice Gyan Sudha Misra (Retd. Justice Supreme Court of India) 6 @
Yes
(DIN: 07577265)
10. Mr. Subhash Sheoratan Mundra (DIN 00979731) 6$ No
11. Mr. Satish Chand Mathur (DIN 03641285) 7^ Yes
*Could not attend the meeting, held on July 25, 2019, due to some pre-occupancy.
**On completion of a tenure of five years, Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892), ceased to be the Independent
***Could not attend the meetings, held on April 5, 2019, April 24, 2019 and May 3, 2019, as he was traveling.
@ Could not attend the meetings, held on July 25, 2019 and November 6, 2019 as she was traveling.
$ Could not attend the meeting, held on April 24, 2019 and October 14, 2019, as he was traveling.
^ Could not attend the meeting, held on April 5, 2019, as he was traveling.
76 |
The minutes of the board meetings of the unlisted subsidiary companies of the Company are placed in the board meetings
of the Company on a quarterly basis.
3. COMMITTEES OF THE BOARD
The Board has constituted various Committees to take informed decisions in the best interest of the Company. These Committees
monitor the activities falling within their terms of reference. Further, terms of reference were revised to align with the provisions
of Companies Act, 2013, SEBI LODR and NHB Act, 1987.
The role and the composition of these Committees including number of meetings held during the financial year and participation
of the members at the meetings of the committees, during the year are as under:
(A) Audit Committee
Composition
Effective from August 12, 2020 the Audit Committee comprises of three members, namely, Mr. Shamsher Singh Ahlawat
as the Chairman and Member, Mr. Prem Prakash Mirdha and Justice Gyan Sudha Misra (Retd.), as members. All the three
members comprising the Committee are Independent Directors. Mr. Amit Jain is the Secretary to the Audit Committee.
Terms of reference of the Audit Committee
The terms of reference of the Audit Committee, inter-alia, include:
• To oversee the financial reporting process and disclosure of financial information;
• To review with management, quarterly, half yearly and annual financial statements and ensure their accuracy and
correctness before submission to the Board;
• To review with management and internal auditors, the adequacy of internal control systems, approving the internal
audit plans/ reports and reviewing the efficacy of their function, discussion and review of periodic audit reports
including findings of internal investigations;
• To recommend the appointment of the internal and statutory auditors and their remuneration;
• To review and approve required provisions to be maintained as per IRAC norms and write off decisions;
• To hold discussions with the Statutory and Internal Auditors;
• Review and monitoring of the auditor’s independence and performance, and effectiveness of audit process;
• Examination of the auditors’ report on financial statements of the Company (in addition to the financial statements)
before submission to the Board;
• Approval or any subsequent modification of transactions of the Company with related parties;
• Scrutiny of inter-corporate loans and investments;
• Review of Credit Concurrent Audit Report;
• Valuation of undertakings or assets of the Company, wherever it is necessary;
• Monitoring the end use of funds raised through public offers and related matters as and when such funds are raised
and also reviewing with the management the utilization of the funds so raised, for purposes other than those stated
in the relevant offer document, if any and making appropriate recommendations to the Board in this regard;
• Evaluation of the risk management systems (in addition to the internal control systems);
• Review and monitoring of the performance of the statutory auditors and effectiveness of the audit process;
• To hold post audit discussions with the auditors to ascertain any area of concern;
• To review the functioning of the whistle blower mechanism;
• Approval to the appointment of the CFO after assessing the qualifications, experience and background etc. of the
candidate;
• Approval of Bad Debt Write Off in terms of the Policy;
• Review of information system audit of the internal systems and processes to assess the operational risks faced by
the Company and also ensures that the information system audit of internal systems and processes is conducted
periodically; and
• Reviewing the utilization of loans and/or advances and/or investment by the Company to its subsidiary companies,
exceeding rupees 100 Crores or 10% of the assets side of the respective subsidiary companies, whichever is lower,
including existing loans / advances / investment existing as on April 1, 2019.
| 77
Meetings and Attendance during the year

During the financial year ended March 31, 2020 the Committee met seven times. The dates of the meetings being April
5, 2019, April 24, 2019, May 5, 2019, August 6, 2019, November 6, 2019, February 4, 2020 and March 28, 2020. The
attendance of Committee members in these meetings is as under:
The attendance of Committee members in these meetings is as under:
Name of the Member No. of meetings attended

Mr. Shamsher Singh Ahlawat 7
Mr. Prem Prakash Mirdha 4$
Mr. Ajit Kumar Mittal* 7
Justice Gyan Sudha Misra (Retd. Justice Supreme Court of India) 5#
$
Could not attend the meeting, held on April 5, 2019, April 24, 2019 and May 5, 2019, as he was traveling.
# Could not attend the meeting, held on November 6, 2019 and March 28, 2020, as she was traveling.
* The Board in its meeting of August 12, 2020, reconstituted the Audit Committee with the redesignation of Mr. Ajit Kumar
Mittal from the member of the Committee to its Invitee.
The Chief Financial Officer, Statutory and Internal Auditors attended the meetings as Invitees.
(B) Nomination & Remuneration Committee
Composition
The Nomination & Remuneration Committee of the Board comprises of three Independent Directors as its members,
namely, Mr. Prem Prakash Mirdha as its Chairman and member, Mr. Shamsher Singh Ahlawat and Justice Gyan Sudha Misra
(Retd.) as the other two members.
Terms of reference
The terms of reference of Nomination & Remuneration Committee, inter-alia, include:
• Formulation of the criteria for determining qualifications, positive attributes and independence of a director
and recommend to the board of directors a policy relating to, the remuneration of the directors, key managerial
personnel and other employees;
• Formulation of criteria for evaluation of performance of independent directors and the board of directors;
• Devising a policy on diversity of board of directors;
• Identifying persons who are qualified to become directors and who may be appointed in senior management in
accordance with the criteria laid down, and recommend to the board of directors their appointment and removal;
• Whether to extend or continue the term of appointment of the independent director, on the basis of the report of
performance evaluation of independent directors;
• To ensure ‘fit and proper’ status of proposed/ existing directors; and
• To recommend to the Board all remuneration, in whatever form, payable to senior management.
During the financial year ended March 31, 2020 the Committee met Four times i.e. on April 24, 2019, July 19, 2019,
November 6, 2019 and February 4, 2020.
The attendance of Committee members in the meeting is as under:

Mr. Prem Prakash Mirdha 4
Justice Gyan Sudha Misra (Retd. Justice Supreme Court of India) 3^
^ Could not attend the meeting, held on November 6, 2019, as she was traveling.
Policy for selection and appointment of Directors
The Nomination and Remuneration Committee (N&R Committee) has adopted a charter which, inter alia, deals with the
manner of selection of the Board of Directors, senior management and their compensation. This Policy is accordingly
derived from the said Charter.
78 |
a) The incumbent for the positions of Executive Directors and/or at senior management, shall be the persons of high
integrity, possesses relevant expertise, experience and leadership qualities, required for the position.
b) The Non-Executive Directors shall be of high integrity, with relevant expertise and experience so as to have the
diverse Board with Directors having expertise in the fields of finance, banking, regulatory, taxation, law, governance
and general management.
c) In case of appointment of Independent Directors, the independent nature of the proposed appointee vis-a-vis the
Company, shall be ensured.
d) The N&R Committee shall consider qualification, experience, expertise of the incumbent, and shall also ensure that
such other criteria with regard to age and other qualification etc., as laid down under the Companies Act, 2013 or
other applicable laws are fulfilled, before recommending to the Board, for their appointment as Directors.
e) In case of re-appointment, the Board shall take into consideration, the performance evaluation of the Director and
his engagement level.
Remuneration Policy
Company’s Remuneration Policy is market led, based on the fundamental principles of payment for performance, for
potential and for growth. It also takes into account the competitive circumstances of the business, so as to attract and
retain quality talent and leverage performance significantly. The N&R Committee recommends the remuneration payable
to the Executive Directors and Key Managerial Personnel, for approval by Board of Directors of the Company, subject to the
approval of its shareholders, wherever necessary. The Remuneration Policy is also available at the website of the Company,
at web-link https://www.indiabullshomeloans.com/investor-relations/codes-policies/.
Evaluation of the Board and Directors
The Independent directors play a key role in the decision-making process of the board as they approve the overall strategy
of the Company and oversee performance of the management. The independent directors are committed to act in the
best interest of the Company and its stakeholders. The Independent Directors bring a wide range of experience, knowledge
and judgment. Their wide knowledge of both, their field of expertise and boardroom practices brings in varied, unbiased,
independent and experienced outlook. All independent directors have committed and allocated sufficient time to perform
their duties effectively. All the independent directors of the Company have confirmed that they have registered themselves
in the databank created for independent directors, well within the stipulated time frame.
The Nomination and Remuneration Committee (NRC) of the Board reassessed the framework, methodology and criteria
for evaluating the performance of the Board as a whole, including Board committee(s), as well as performance of each
Director(s)/Chairman and confirms that the existing evaluation parameters are in compliance with the requirements as
per SEBI guidance note dated January 5, 2017 on Board evaluation. The existing parameters includes effectiveness of the
Board and its committees, decision making process, Directors/members participation, governance, independence, quality
and content of agenda papers, team work, frequency of meetings, discussions at meetings, corporate culture, contribution,
role of the Chairman and management of conflict of interest. Basis these parameters, the NRC had reviewed at length the
performance of each director individually and expressed satisfaction on the process of evaluation and the performance
of each Director. The performance evaluation of the Board as a whole and its committees namely Audit Committee,
Nomination & Remuneration Committee and Stakeholders Relationship Committee as well as the performance of each
director individually, including the Chairman was carried out by the entire Board of Directors. The performance evaluation
of the Chairman, Vice-Chairman, Executive Directors and Non-Executive Director was carried out by the Independent
Directors in their meeting held on March 20, 2020. The Directors expressed their satisfaction with the evaluation process.
Also the Chairman of the Company, on a periodic basis, has had one-to-one discussion with the directors for their views
on the functioning of the Board and the Company, including discussions on level of engagement and contribution,
independence of judgment, safeguarding the interest of the Company and its minority shareholders and implementation
of the suggestions offered by Directors either individually or collectively during different board/committee meetings.
Policy on Board Diversity
The N&R Committee devises the policy to provide for having a broad experience and diversity on the Board.
Director’s Remuneration:
(i) Remuneration of Executive Directors
The Executive Chairman, Vice-Chairman, Managing Director & CEO, Deputy Managing Director and other Executive
Directors are being paid remuneration as recommended by Nomination & Remuneration Committee and approved
by the Board of Directors/Shareholders.
| 79
Details of remuneration paid to Executive Directors, during the FY 2019-20 are provided below:
Amount (in `)
Particulars of Remuneration$ Name of the Executive Director Total

Mr. Sameer Mr. Gagan Mr. Ashwini Mr. Ajit Mr. Sachin
Gehlaut, Banga, Vice- Omprakash Kumar Chaudhary,
Founder and Chairman, Kumar, Mittal, Executive
Executive Managing Executive Executive Director##
Chairman# Director & Director Director#
CEO## (Deputy
Managing
Director) ##
Gross salary
(a) Salary as per provisions 125,105,214 101,988,764 51,112,868 19,660,095 46,866,862 344,733,803
contained in section 17(1)
of the Income Tax, 1961.
(b) Value of perquisites u/s - 8,448,413 39,600 1,276,800 39,600 9,804,413
17(2) of the Income Tax Act,
1961*
(c) Profits in lieu of salary under - - - - - -
section 17(3) of the Income
Tax Act, 1961
Stock option* - - - - - -
Sweat Equity - - - - - -
Commission (as % of profit/others) - - - - - -
Others, please specify - - - - - -
Total (excludes perquisite on stock 125,105,214 110,437,177 51,152,468 20,948,895 46,906,462 354,538,216
options reported in point 2)
#
Mr. Sameer Gehlaut has not availed any increment with respect to his remuneration in the last four years, to
augment and support the growth of our Company. Additionally, Mr. Sameer Gehlaut and Mr. Ajit Kumar Mittal, have
voluntarily decided to not draw any salary effective from October 1, 2019
## Mr. Gagan Banga, Mr. Ashwini Omprakash Kumar and Mr. Sachin Chaudhary have opted to take a 79%, 67% and
34% cut respectively, on their salaries effective from October 1, 2019.
* Excludes value of perquisites on exercise of stock options.
$
(ii) Remuneration of Non-Executive Directors

With changes in the corporate governance norms brought in by the Companies Act, 2013 as well as SEBI LODR,
the role of Non-Executive Directors (NED) and the degree and quality of their engagement with the Board and the
Company has undergone significant changes over a period of time. The Company is being hugely benefited from the
expertise, advice and inputs provided by the NEDs. They devote their valuable time in deliberating on the strategic
and critical issues in the course of the Board and Committee meetings of the Company and give their valuable
advice, suggestion and guidance to the management of the Company. The Company is making payment of fee/
remuneration payable to its NEDs in accordance with the provisions of the Companies Act, 2013 and SEBI LODR.
The Company has placed on its website https://www.indiabullshomeloans.com/uploads/downloads/criteria-for-
making-payment-to-non-executive-directors_ihfl-0699938001562586522.pdf, criteria for making payment to Non-
Executive Directors. During the Financial Year ended March 31, 2020, the Non- Executive Directors have been paid,
sitting fees for attending the Board meetings of the Company, and commission, the details of which are provided
below:
80 |
Details of remuneration paid to Non-Executive Directors, during the FY 2019-20 are provided below:
Amount (in `)
Particulars of Remuneration Name of the Non-Executive Directors Total

paid during their tenure Amount
Independent Directors Mr. Justice Mrs. Mr. Mr. Dr. Kamalesh Mr. Subhash
Shamsher Gyan Sudha Prem Satish Chandra Sheoratan
Singh Misra (Retd.) Prakash Chand Chakrabarty * Mundra
Ahlawat Mirdha Mathur
(a) Fee for attending board 800,000 600,000 500,000 700,000 - 600,000 3,200,000
committee meetings
(b) Commission - - - - - -
(c) Others (Profit Link Incentive) - - - - 3,818,380 -
Total (1) 800,000 600,000 500,000 700,000 3,818,380 600,000 7,018,380
Other Non-Executive Directors
(a) Fee for attending board N.A.
committee meetings
(b) Commission N.A.
(c) Others, please specify. N.A.
Total (2) N.A. N.A.
Total =(1+2) 7,018,380
Total Managerial Remuneration 7,018,380
*On completion of five years tenure, Dr. Kamalesh Chandra Chakrabarty (DIN: 00175892), ceased to be the Independent
(C) Stakeholders Relationship Committee
Composition
The Stakeholders Relationship Committee currently comprises of three members, namely, Mr. Shamsher Singh Ahlawat
as the Chairman and Member, Mr. Prem Prakash Mirdha and Mr. Ashwini Omprakash Kumar, as members. Two out of the
three members of the Committee, namely, Mr. Shamsher Singh Ahlawat and Mr. Prem Prakash Mirdha, are Independent
Directors and Mr. Ashwini Omprakash Kumar is an Executive Director.
Terms of Reference
• To approve requests for share transfers and transmissions;
• To approve the requests pertaining to remat of shares/sub-division/consolidation/issue of renewed and duplicate
share certificates etc;
• To oversee all matters encompassing the shareholders’ / investors’ related issues;
• Resolving the grievances of the security holders of the Company, including complaints related to transfer/
transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate
certificates, general meetings etc;
• Review of measures taken for effective exercise of voting rights by shareholders;
• Review of adherence to the service standards adopted by the Company in respect of various services being rendered
by the Registrar & Share Transfer Agent; and
• Review of the various measures and initiatives taken by the Company for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of
the Company.
During the financial year ended March 31, 2020 the Committee met five times. The dates of the meetings being April 24,
2019, August 6, 2019, November 6, 2019, December 23, 2019 and February 4, 2020.
| 81
The attendance record of Committee members in respect of the meetings so held is depicted in the table given below:

Mr. Ashwini Omprakash Kumar 5
Name and designation of Compliance Officer
Mr. Amit Jain, Company Secretary is the Compliance Officer pursuant to Regulation 6(1) of SEBI (LODR) Regulations, 2015.
Details of queries / complaints received and resolved pertaining to Equity Shares of the Company during the year 2019-20:-
Sl. PARTICULARS OPENING RECEIVED DISPOSED PENDING

No.
1 Legal Cases / Cases before Consumer Forums 0 0 0 0
2 Letters from SEBI / Stock Exchange. 0 6 6 0
3 Status of applications lodged for public issue(s) 0 0 0 0
4 Non-receipt of dividend 0 521 521 0
5 Non-reciept of annual report 0 10 10 0
6 Non receipt of Refund order 0 0 0 0
7 Non credit/receipt of shares in demat account 0 0 0 0
8 Non receipt of securities after transfer 0 0 0 0
TOTAL 0 537 537 0
Details of queries / complaints received and resolved pertaining to Non-Convertible Debentures of the Company during
the year 2019-20:-
Sl. Particulars Opening Received Disposed Pending

No.
1 Legal Cases / Cases before Consumer Forums 0 0 0 0
2 Letters from SEBI / Stock Exchange. 0 7 7 0
3 Status of applications lodged for public issue(s) 0 0 0 0
4 Non-receipt of Interest 0 95 95 0
5 Non-receipt of annual report 0 0 0 0
6 Non receipt of Refund order 0 0 0 0
7 Non credit/receipt of NCDs in demat account 0 0 0 0
8 Non receipt of securities after transfer 0 0 0 0
Total 0 102 102 0
(D) Risk Management Committee
Composition
The Risk Management Committee of the Board comprises of eight members i.e. four Executive Directors, namely, Mr. Ajit
Kumar Mittal, Mr. Gagan Banga, Mr. Ashwini Omprakash Kumar and Mr. Sachin Chaudhary and two Independent Directors,
namely, Mr. Shamsher Singh Ahlawat and Mr. Prem Prakash Mirdha and Mr. Mukesh Garg, CFO & Mr. Subhankar Ghosh as
its members. Mr. Ajit Kumar Mittal is the Chairman of the Committee.
Terms of reference of the Risk Management Committee
The terms of reference of the Risk Management Committee, inter-alia, include:
• Approve the Credit/Operation Policy and its review/modification from time to time;
• Review of applicable regulatory requirements;
• Approve all the functional policies of the Company;
• Place appropriate mechanism in the system to cater Fraud while dealing with customers/approval of loans etc;
• Review of profile of the high loan Customers and periodical review of the same;
82 |
• Review of Branch Audit Report/Concurrent Audit Report of Treasury;

• Review Compliances of lapses;
• Review of implementation of FPCs, KYC and PMLA guidelines;
• Define loan sanctioning authorities, including process of vetting by credit committee, for various types/values of
loans as specified in Credit Policy approved by the BoDs;
• Review the SARFAESI cases;
• Recommend Bad Debt Write Off in terms of the Policy, for approval to Audit Committee;
• Ensure appropriate mechanisms to detect customer fraud and cyber security during the loan approval process etc.;
and
• Any other matter involving Risk to the asset/business of the Company.
During the financial year ended March 31, 2020, the Committee met Six times. The dates of the meetings being April 12,
2019, June 17, 2019, July 15, 2019, October 24, 2019, January 13, 2020 and March 28, 2020.
The attendance record of Committee members in respect of the meetings so held is depicted in the table given below:

Mr. Ajit Kumar Mittal 6
Mr. Gagan Banga 6
Mr. Sachin Chaudhary 6
Mr. Mukesh Garg 6
Mr. Subhankar Ghosh 6
(E) Corporate Social Responsibility (CSR) Committee
Composition
The Corporate Social Responsibility Committee comprises of three members, namely, Mr. Shamsher Singh Ahlawat, as the
Chairman and member, and Mr. Gagan Banga and Mr. Ashwini Omprakash Kumar as the other two members.
Terms of Reference of the Corporate Social Responsibility Committee
The Terms of reference of the CSR Committee inter-alia, include:
• To recommend to the Board, the CSR activity to be undertaken by the Company;
• To approve the expenditure to be incurred on the CSR activity;
• To oversee and review the effective implementation of the CSR activity; and
• To ensure compliance of all related applicable regulatory requirements.
During the financial year ended March 31, 2020 the Committee met two times. The date of the meetings being January 14,
2020 and March 31, 2020.

Mr. Gagan Banga 2
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4. GENERAL BODY MEETINGS

(A) Location and time of last three Annual General Meetings (AGMs) and number of special resolutions passed thereat:
Year Meeting Location Date Time Number of special

resolutions passed
2016-17 12th AGM Mapple Emerald, Rajokri, NH-8, September 8, 2017 10:00 A.M 3
New Delhi-110038
2017-18 13th AGM Mapple Emerald, Rajokri, NH-8, September 19, 2018 10:00 A.M 3
New Delhi-110038
2018-19 14th AGM Mapple Emerald, Rajokri, NH-8, August 28, 2019 11:00 A.M 2
New Delhi-110038
(B) Postal Ballot during the FY 2019-20
During the Financial Year 2019-20, under-mentioned seven resolutions as per Postal Ballot Notice dated November 18,
2019, were approved as Special Resolutions through Postal Ballot / e-voting by the shareholders of the Company with
requisite majority on December 23, 2019, results of which was declared on December 24, 2019. A snapshot of the voting
results is as under:
ITEM Particulars % of votes polled % of votes % of votes

NO. on outstanding in favour on against on
shares votes polled votes polled
1 Approval of issuance of non-convertible debentures 74.180 97.268 2.732
along with warrants to qualified institutional buyers.
2 Approval of Indiabulls Housing Finance Limited - Employee 74.179 90.718 9.282
Stock Benefit Scheme 2019 and grant of Employee Stock
Options and/or Shares and/or Stock Appreciation Rights
to the employees of the Company.
3 Approval to grant Employee Stock Options and/or Shares 74.179 90.718 9.282
and/or Stock Appreciation Rights to the employees of the
subsidiary company (ies), if any, of the Company, under
Indiabulls Housing Finance Limited - Employee Stock
Benefit Scheme 2019.
4 Grant of Employee Stock Options and/or Shares and/or 74.179 90.718 9.282
Stock Appreciation Rights to the Employees of Company
and that of the Subsidiary company (ies) by way of
Secondary Acquisition under Indiabulls Housing Finance
Limited - Employee Stock Benefit Scheme 2019.
5 Approval of Trust Route for the implementation of 74.179 90.718 9.282
Indiabulls Housing Finance Limited - Employee Stock
Benefit Scheme 2019.
6 Provision of Money by the Company for purchase of 74.179 90.833 9.167
its own shares by the Trust / Trustees for the benefit of
Employees under Indiabulls Housing Finance Limited -
Employee Stock Benefit Scheme 2019.
7 Approval for grant of Employee Stock Options and/or 63.461 88.950 11.050
Shares and/or Stock Appreciation Rights to the identified
employees during any one year, equal to or exceeding
one percent of the issued capital of the Company at the
time of grant of Employee Stock Options and/or Shares
and/or Stock Appreciation Rights.
The Company had followed-up all the applicable legal requirements as prescribed in the SEBI Listing Regulations and the
Companies Act, 2013 and rules made thereunder, for conducting of Postal Ballot which interalia included mailing / dispatch
of Postal Ballot Notice to the shareholders, appointing scrutinizer to receive and scrutinize the completed postal ballot
papers, publication of advertisement in the newspaper informing on postal ballot notice and its dispatch, opening / closing
time for exercising e voting and timeline for declaration of postal ballot results.
Mr. Amit Jain, Company Secretary was appointed as a person responsible for the entire Postal Ballot / e-voting process.
Mr. Nishant Mittal (Membership No. 553860), Proprietor of M/s. N Mittal & Associates, Practicing Chartered Accountant,
Gurugram, was appointed as the Scrutinizer for the purpose of conducting and scrutinizing the postal ballot voting process
in a fair and transparent manner. Mr. Nishant Mittal (Membership No. 553860), Proprietor of M/s. N Mittal & Associates,
Practicing Chartered Accountant conducted the process and submitted the report to the Company.
84 |
There is no immediate proposal for passing any Special Resolution through Postal Ballot on or before the ensuing AGM of
the Company.
5. MEANS OF COMMUNICATION
The Company has provided adequate and timely information to its member’s inter-alia through the following means:
(i) Publication of financial Results: The quarterly / annual results of the Company are published in the leading newspapers viz.
The Economic Times (English), Business Standard (English and Hindi), The Times of India (English) and Nav Bharat Times
(Hindi).
(ii) News, Release etc.: The Company has its own website https://www.indiabullshomeloans.com and all vital information
relating to the Company and its performance including financial results, earnings update, press releases pertaining to
important developments, performance updates and corporate presentations etc. are regularly posted on the website.
(iii) Presentation to institutional investors or analysts: The presentations made to the institutional investors or analysts, are
uploaded on the website of the Company, and also sent to the Stock Exchange for dissemination.
(iv) Management’s Discussion and Analysis Report has been included in the Annual Report, which forms a part of the Annual
Report.
6. GENERAL SHAREHOLDERS INFORMATION
(A) Company Registration Details
The Company is registered in the State of Delhi, India. The Corporate Identity Number (CIN) allotted to the Company by the
Ministry of Corporate Affairs (MCA) is L65922DL2005PLC136029.
(B) Date, Time and Venue of AGM
The 15th AGM of the Company would be held on the day, date, time and venue as mentioned in the Notice convening the
said AGM.
(C) Financial year
The financial year of the Company is a period of twelve months beginning on 1st April every calendar year and ending on
31st March the following calendar year.
(D) Dividend Payment Date
The First Interim Dividend of `10/- (Rupees Ten) per equity share was paid on/from May 08, 2019, the Second Interim
Dividend of `8/- (Rupees Eight) per equity share was paid on/from August 20, 2019, the Third Interim Dividend of `7/-
(Rupees Seven) per equity share was paid on/from November 19, 2019 and the Forth Interim Dividend of `6/- (Rupees Six)
per equity share was paid on/from February 15, 2020. The aggregate Dividend payout during the financial year 2019-20
was ` 31/- per equity share.
(E) Date of Book Closure
The dates of Book Closure are as mentioned in the Notice convening the 15th AGM of the Company.
(F) Listing on Stock Exchanges
The Company’s shares, GDRs, Bonds are listed at the following stock exchanges:
Equity Shares and NCDs Global Depository Receipts(GDRs) Secured Synthetic INR Notes Due
2019 & 2021
BSE Limited (BSE) Luxembourg Stock Exchange Singapore Exchange Securities
Phiroze Jeejeebhoy Towers, Dalal Street, Societe de la Bourse de Trading Limited
Mumbai – 400 001 Luxembourg, II av de la Porte – 11 North Buona Vista Drive
National Stock Exchange of India Limited (NSE) Neuve, L-2227, Luxembourg. #06-07 The Metropolis Tower 2
“Exchange Plaza”, Bandra-Kurla Complex, Singapore 138589
Bandra (E), Mumbai – 400 051
The listing fees for the financial year 2019-20, have been paid to BSE and NSE.
(G) Stock Code
BSE Limited – 535789
National Stock Exchange of India Limited - IBULHSGFIN/EQ
ISIN for Dematerialization – INE148I01020
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(H) Stock Market Price at National Stock Exchange of India Limited (NSE) and BSE Limited (BSE)
The monthly high and low market prices of equity shares at the National Stock Exchange of India Limited (NSE) and BSE
Limited (BSE) for the year ended March 31, 2020 are as under:
Month NSE BSE

High (`) Low (`) High (`) Low (`)
Apr-19 919.40 670.60 919.00 671.00
May-19 846.90 651.30 846.00 651.00
Jun-19 819.90 487.85 819.90 500.20
Jul-19 745.45 506.00 744.95 506.15
Aug-19 619.00 420.80 625.00 421.10
Sep-19 468.60 240.05 468.20 240.10
Oct-19 306.10 165.80 299.65 165.95
Nov-19 376.70 200.50 376.80 200.50
Dec-19 319.80 254.00 319.75 254.00
Jan-20 335.80 291.55 335.80 292.00
Feb-20 361.00 250.20 360.90 250.50
Mar-20 349.75 81.00 339.20 81.25
(I) Performance of the Company’s share in comparison to broad – based indices
IHFL Share Price on BSE Sensex
43,000
900
41,000
IHFL Share Price on BSE
750 39,000
600 37,000
Sensex
450 35,000
300 33,000
150 31,000
- 29,000
Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
19 19 19 19 19 19 19 19 19 20 20 20
Month Ended

IHFL Share Price on NSE Ni�y
900 12,900
800
12,200
700
IHFL Share Price on NSE
11,500
600
500 10,800
Ni�y
400 10,100
300
9,400
200
100 8,700
- 8,000
Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
19 19 19 19 19 19 19 19 19 20 20 20
Month Ended

86 |
(J) Registrar and Transfer Agents

(i) For Equity Shares and Secured Non-convertible Debentures and Unsecured Non-Convertible Debentures issued
under Public Issue and Private Placement basis
KFin Technologies Private Limited
(formerly Karvy Fintech Private Limited)
Unit: Indiabulls Housing Finance Limited
Selenium Building, Tower B, Plot Nos. 31-32, Gachibowli,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad – 500 032.
Tel. No.: +91 40 6716 2222; Toll Free No.: 1800-345-4001;
Fax No.: +91 40 2300 1153/ 2342 0814.
E-mail: murthy.psrch@kfintech.com or evoting@kfintech.com.
Website: www.kfintech.com
(ii) Secured Non-convertible Debentures, Unsecured Non-Convertible Debentures, and Unsecured Non- Convertible
Subordinate Debt in the nature of Debentures issued on Private Placement basis
Skyline Financial Services Private Limited
D-153 A, Ist Floor, Okhla Industrial Area, Phase – I, New Delhi – 110 020
Tel: 011-26812682, Fax: 011-26812682
E-mail: info@skylinerta.com
Website: www.skylinerta.com
(K) Share Transfer System
The Board has delegated the authority for share transfers, transmissions, remat/ demat of shares/sub-division/
consolidation/ issue of renewed and duplicate share certificates etc. to the Board constituted Stakeholders’ Relationship
Committee. For any such action request is to be made to the RTA, which after scrutinizing all such requests, forwards it for
approval by Stakeholders’ Relationship Committee.
(L) (i) Distribution of shareholding as on March 31, 2020
Sl. Category (Amount) No of % to total Total Shares Amount (in `) % of

No. holders holders Amount
1 1-5000 239,273 98.63 35,859,150 71,718,300.00 8.39
2 5001-10000 1,785 0.74 6,348,894 12,697,788.00 1.48
3 10001-20000 708 0.29 5,094,520 10,189,040.00 1.19
4 20001-30000 233 0.10 2,932,235 5,864,470.00 0.69
5 30001-40000 97 0.04 1,741,023 3,482,046.00 0.41
6 40001-50000 65 0.03 1,455,527 2,911,054.00 0.34
7 50001- 100000 157 0.06 5,540,209 11,080,418.00 1.30
8 100001 & Above 287 0.12 368,602,533 737,205,066.00 86.21
Total: 242605 100.00 427,574,091 855,148,182.00 100.00
| 87
(ii) Shareholding pattern as on March 31, 2020
S. Description No. of Shares % holding

No.
1 Promoters and Promoters Group^ 97,794,806 22.87
2 Mutual Funds/Indian Financial Institutions 13,768,038 3.22
3 Banks 1,032,469 0.24
4 Insurance Companies* 45,823,723 10.72
5 FIIs/FPIs 159,996,693 37.42
6 Bodies Corporate 36,786,271 8.6
7 Indian Public (Employees/HUF/Public/Trusts/Directors) 48,292,682 11.3
8 NRIs 1,931,458 0.45
9 GDRs (Shares underlying) 4,004,745 0.94
10 Other foreign entities(Foreign Bodies -DR) 428 0
11 NBFC 5,959 0
12 Others(Clearing Members) 9,632,839 2.25
13 Others(AIF/IEPF/EWT) 8,503,980 1.99
Total 427,574,091 100.00
Ôf the 2,300,000 equity shares in the Company acquired by Mr. Sameer Gehlaut (Promoter) on 26th March, 2020
from open market, one share short received in payout got credited to his demat account subsequent to 31st March,
2020. In addition, 2,400,000 equity shares in the Company acquired by him on 31st March, 2020 from open market,
got credited to his demat account subsequent to 31st March, 2020. Hence, 2,400,001 equity shares are not included
in his shareholding as on 31st March, 2020.
*Life Insurance Corporation of India (LIC) is holding equity shares of the Company under two different categories i.e.
34,688,043 Equity Shares under the category Insurance Company and 11,135,680 Equity Shares under the category
Indian Financial Institution, under the same PAN AAACL0582H. However, to comply with the SEBI Circular No. SEBI/
HO/CFD/CMD/CIR/P/2017/128 dated December 19, 2017, requiring the Company to consolidate the shareholding on
the basis of PAN to avoid multiple disclosures of shareholding of same person, the Company has consolidated entire
shareholding of LIC i.e. 45,823,723Equity Shares under the category Insurance Company.
(M) Dematerialization of shares and liquidity
Equity Shares of the Company are traded under compulsory dematerialized mode and are available for trading under both
the depositories i.e. NSDL and CDSL.
As on March 31, 2020, 99.998% Equity shares of the Company representing 427,566,295 out of a total of 427,574,091
Equity shares were held in dematerialized form and the balance 7,796 shares representing 0.002% of the total equity
capital of the Company were held in physical form.
The Company obtains from a Company Secretary in practice, half yearly certificate of compliance with the share transfer
formalities as required under Regulation 40(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and files a copy of the certificate with the Stock Exchanges.
(N) Outstanding GDRs/Convertible Instruments
As on March 31, 2020, the number of outstanding GDRs was 4,004,745. Each GDR represents one equity share of `2/-
each in the Company. Also as on March 31, 2020, an aggregate of 18,527,342 Employees Stock options are in force. These
options, upon exercise, are convertible into equal number of Equity Shares of the Company. As and when these options are
exercised, the paid-up share capital of the Company shall stand increased accordingly.
(O) Commodity price risk or foreign exchange risk and hedging activities
The Company does not have any exposure to commodity price risks. During FY 2019-20, the Company has managed
the foreign exchange risk by hedging the entire principal and/or interest on its foreign currency borrowings. The foreign
currency and interest rate risk on borrowings have been actively hedged through a combination of forward contracts,
options, principal only swaps, interest rate swaps and / or cross currency swaps.
88 |
(P) Plant Locations

As the Company is engaged in the business of housing finance/financial services, there is no plant location.
(Q) Address for Correspondence
(i) Registered Office:
M-62 & 63, First Floor, Connaught Place, New Delhi - 110 001
Email: helpdesk@indiabulls.com,
Tel: 0124-6681199, Fax: 0124-6681240,
Website: https://www.indiabullshomeloans.com/
(ii) Corporate Office:
(a) “Indiabulls House”
448-451, Udyog Vihar, Phase V,
Gurugram – 122 016, Haryana
(b) “Indiabulls House”, Indiabulls Finance Centre, Tower 1, Elphinstone Mills,
Senapati Bapat Marg, Mumbai - 400 013, Maharashtra
(R) Debenture Trustees
(i) Secured Non-convertible Debentures and Unsecured Non-Convertible Debentures issued under IPO and Secured
Non-convertible Debentures issued on Private Placement basis.
IDBI Trusteeship Services Limited
Contact Person: Mrs. Anjalee Athalye
Address: Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400 001
Tel: +91 22 40807018; Fax: +91 22 40807080
Website: www.idbitrustee.com
(ii) Unsecured Non-Convertible Subordinate Debt in the nature of Debentures issued on Private Placement basis.
Axis Trustee Services Limited
Contact Person: Mr. Neelesh Baheti
Address: 2nd Floor, Axis House, Bombay Dyeing Mills Compound Pandurang Budhkar Marg, Worli, Mumbai – 400
025 (Maharashtra)
Tel: (022) 24252525/ 43252525
Website: www.axistrustee.com
(S) Profiles of the directors seeking appointment / re-appointment have been captured in the Notice convening the
15th AGM of the Company.
(T) Credit Ratings and Change/ Revisions in Credit Ratings for Debt Instruments:-
Deposits Instrument Name of rating agency Date of rating Rating Borrowing limit or
/ revalidation assigned/ conditions imposed by
Reaffirmed rating agency, if any
(Amt. in ` Billion)
Cash Credit Crisil Rating Mar-20 CRISIL AA 77.95
Long-Term Bank Facility Crisil Rating Mar-20 CRISIL AA 0.33
Proposed Long-Term Bank Facility Crisil Rating Mar-20 CRISIL AA 167.22
Non-Convertible Debentures Crisil Rating Mar-20 CRISIL AA 294.80
Subordinate Debt Crisil Rating Mar-20 CRISIL AA 25.00
Retail Bonds Crisil Rating Mar-20 CRISIL AA 150.00
Short Term Non-Convertible Crisil Rating Mar-20 CRISIL A1+ 10.00
Debenture
Short Term Commercial Paper Crisil Rating Mar-20 CRISIL A1+ 250.00
Program
NCD Issue Brickwork Ratings Mar-20 BWR AA+ 270.00
Subordinate Debt Issue program Brickwork Ratings Mar-20 BWR AA+ 30.00
| 89
Deposits Instrument Name of rating agency Date of rating Rating Borrowing limit or
/ revalidation assigned/ conditions imposed by
Reaffirmed rating agency, if any
(Amt. in ` Billion)
Perpetual Debt Issue Brickwork Ratings Mar-20 BWR AA 1.50
Secured NCD Brickwork Ratings Mar-20 BWR AA+ 68.01
Unsecured Subordinated NCD Brickwork Ratings Mar-20 BWR AA+ 1.99
Long Term Debt CARE Ratings Feb-20 CARE AA 320.02
Subordinate Debt CARE Ratings Feb-20 CARE AA 50.00
Prepetual Debt CARE Ratings Feb-20 CARE AA- 2.00
Cash Credit CARE Ratings Mar-20 CARE AA 80.00
Long-Term Bank Facility CARE Ratings Mar-20 CARE AA 330.66
Short Term Bank Facility CARE Ratings Mar-20 CARE A1+ -
Proposed Long-Term/Short-Term CARE Ratings Mar-20 CARE AA 114.34
Facility
Public Issue of Non-Convertible CARE Ratings Feb-20 CARE AA 61.72
Debentures
Public Issue of Subordinate Debt CARE Ratings Feb-20 CARE AA 1.99
Short Term Commercial Paper CARE Ratings Feb-20 CARE A1+ 150.00
Program
NCD Issue ICRA Limited Feb-20 ICRA AA 373.60
Long Term Bank Facilities ICRA Limited Feb-20 ICRA AA 470.00
Subordinate Debt ICRA Limited Feb-20 ICRA AA 50.00
Short Term Debt Programme (CP) ICRA Limited Feb-20 ICRA A1+ 25.00
Long Term Corporate Family Moody’s Mar-20 B3 -
Rating
Foreign and Local Currency Senior Moody’s Mar-20 (P) B3 $ 350 Mn
Secured MTN program Rating
(U) Details of utilization of funds raised through preferential allotment or qualified institutions placement
During the Financial Year 2019-20, the Company had not raised any funds through preferential allotment or qualified
institutions placement.
(V) Fees paid to Statutory Auditors
Total fees for all services paid by the listed entity and its subsidiaries, on a consolidated basis, to the statutory auditor and
all entities in the network firm/network entity of which the statutory auditor is a part is given below:-
INR in Crores
Particulars FY 2019-20
Auditor’s remuneration 2.89 (Including GST)
7. COMPLIANCE CERTIFICATE FROM THE PRACTICING COMPANY SECRETARY
A certificate from a Practicing Company Secretary certifying the Company’s compliance with the provisions of Corporate
Governance as stipulated in Regulation 34(3) read with Schedule-V of the SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015, is annexed to and forms a part of this Report.
8. DISCLOSURES IN RELATION TO THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013:
Number of complaints filed during the Number of complaints disposed of Number of complaints pending as on
financial year 2019-20 during the financial year 2019-20 end of the financial year 2019-20
0 0 0
90 |
9. OTHER DISCLOSURES:
(i) Subsidiary Companies
Indiabulls Commercial Credit Limited was material unlisted subsidiary of the Company during the financial year 2019-20.
The Company has formulated a Policy for determining material subsidiaries, pursuant to the provisions of the SEBI (Listing
Obligation and Disclosure Requirements) Regulations, 2015, which is available on the website of the Company https://www.
indiabullshomeloans.com/uploads/downloads/ihfl_policy-for-determining-material-subsidiary-0856481001562586391.
pdf
(ii) Details of Non-Compliance/MCA Inspection
During the last three financial years, a sum of `1,439,900/- was paid to SEBI, during the FY 2017-18, towards settlement
of the Notice received by the Company on certain alleged irregularities with the filings of shareholding pattern by the
Company with Exchanges (between 2010 and 2012).
During FY 2019-2020, the office of Regional Director, Northern Region, New Delhi, Ministry of Corporate Affairs, Government
of India ( R D Office), had conducted inspection under section 206(5) of the Companies Act, 2013 (the Act) of the records
and documents of the Company pertaining to the Financial years 2015 to 2019 and issued Preliminary Findings letter inter-
alia mentioning certain technical / clerical omissions under sections i.e. 118, 128, 129 , 188 and 205 of the Act, all of which
are compoundable in nature. The Company, suo moto to buy peace, has filed compounding applications under section 441
of the Act with the office of Registrar of Companies, Ministry of Corporate Affairs, Government of India, for composition
of these alleged minor technical non-compliances. These applications are under the jurisdiction and to be compounded by
RD Office. The Company shall pay the monetary penalty, as may be adjudicated and imposed by RD Office.
(iii) Related Party Transactions
All the related party transactions, entered into by the Company, during the financial year, were in its ordinary course
of business and on an arm’s length basis. There are no materially significant related party transactions entered by the
Company with its Promoters, Key Management Personnel or other designated persons which may have potential conflict
with the interest of the Company at large. The Policy on materiality of Related Party Transactions and also on dealing with
such transactions is available on the website of the Company (https://www.indiabullshomeloans.com/).
(iv) VC, MD & CEO / CFO Certification
(a) The Vice-Chairman, Managing Director & CEO and CFO have issued certificate pursuant to the Regulation 33(2)(a)
of SEBI (LODR) Regulations, 2015, certifying that the financial statements do not contain any false or misleading
statement or figures and do not omit any material fact which may make the statements or figures contained therein
misleading.
(b) The Vice-Chairman, Managing Director & CEO and the CFO have issued certificate pursuant to the provisions of
Regulation 17(8) read with Part-B of Schedule-II of the SEBI LODR, certifying that the financial statements do not
contain any materially untrue statement and these statements represent a true and fair view of the Company’s
affairs.
(v) Codes of the Company
(a) Code of Conduct and Ethics
The Company has laid down a Code of Conduct and Ethics (the “Code”) for the Board Members and Senior
Management personnel of the Company. The Code is available on the website of the Company https://www.
indiabullshomeloans.com/.
All Board Members and Senior Management personnel have affirmed compliance with the Code. A declaration
signed by the Chief Executive Officer to this effect is enclosed at the end of this Report.
The Code seeks to ensure that the Board Members and Senior Management personnel observe a total commitment
to their duties and responsibilities while ensuring a complete adherence with the applicable statutes along with
business values and ethics.
(b) Code of Conduct for Prevention of Insider Trading
The Company has laid down a Code of Conduct for Prevention of Insider Trading, in accordance with the requirements
of The Securities and Exchange Board of India (Insider Trading) Regulations, 2015 and Companies Act, 2013, with a
view to regulate trading in Securities of the Company by its directors, designated persons and employees.
(vi) Whistle Blower Policy
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of its business operations.
To maintain these standards, the Company has implemented the Whistle Blower Policy (‘’the Policy’’), to provide an avenue
for employees to report matters without the risk of subsequent victimization, discrimination or disadvantage. The Policy
applies to all employees working for the Company and its subsidiaries. Pursuant to the Policy, the whistle blowers can
| 91
raise concerns relating to matters such as breach of Company’s Code of Conduct, fraud, bribery, corruption, employee
misconduct, illegality, misappropriation of Company’s funds/assets etc. A whistle-blowing or reporting mechanism, as set
out in the Policy, invites all employees to act responsibly to uphold the reputation of the Company and its subsidiaries. The
Policy aims to ensure that serious concerns are properly raised and addressed and are recognized as an enabling factor
in administering good governance practices. The details of the Whistle Blower Policy are available on the website of the
Company (https://www.indiabullshomeloans.com/).
(vii) Strictures and penalties
During the Financial Year 2019-20, there has been no instance of any non-compliance by the Company on any matter
related to capital markets and hence, of any penalties being imposed on the Company or strictures being passed against it,
by SEBI or the Stock Exchanges or any other statutory authorities on any such matters.
(viii) Details of compliance with mandatory requirements and adoption of the non-mandatory requirements pursuant to SEBI
(LODR) Regulations, 2015.
The Company has complied with all the mandatory requirements pursuant to SEBI (LODR) Regulations, 2015 in letter as
well as in spirit. The details of these compliances have been given in the relevant sections of this Report. The status on
compliance with the Non mandatory requirements are given at the end of the Report.
10. DISCRETIONARY REQUIREMENTS
(A) Non-Executive Chairman
As on the date of this report, the Company has Non-Executive Independent Director as its Chairman. During the FY 2019-
20 and upto the date of this Report the Company had an Executive Director as its Chairman and hence the requirements
recommended as to a Non–Executive Chairman under the Regulation 17 of SEBI (LODR) Regulations, 2015 were not
required to be adopted by the Company.
(B) Shareholders Rights
The Company would be getting its quarterly/half yearly and annual financial results published in leading newspapers with
wide circulation across the country and regularly update the same on its public domain website. In view of the same
individual communication of quarterly/annual financial results to the shareholders will not be made. Further, information
pertaining to important developments in the Company shall be brought to the knowledge of the public at large and to the
shareholders of the Company in particular, through communications sent to the stock exchanges where the shares of the
Company are listed, through press releases in leading newspapers and through regular uploads made on the Company
website.
(C) Unqualified financial statements
It has been the endeavor of the Company to have its accounting systems and controls to ensure complete adherence to
the applicable accounting standards and practices obviating the possibility of the Auditors qualifying their report on the
audited accounts of the Company. The Auditors’ Report on the audited annual accounts of the Company for the FY 2019-20
contains a qualification on which Management response has been adequately captured in the Boards’ Report forming part
of this Annual Report.
(D) Separate posts of chairperson and chief executive officer
During the FY 2019-20 and upto the date of this Report, the Company has separate Executive-Chairman and Vice-Chairman,
Managing Director and CEO.
As on the date of this Report the Company has a Non-Executive Independent Director as its Chairman.
(E) Reporting of Internal Auditor
The Internal Auditor of the Company reports to CFO and has direct access to the Audit Committee.
Except as set out above, the Company has not adopted the non-mandatory requirements as to any of the other matters
recommended under Part E of Schedule II of Regulation 27(1) of SEBI (LODR) Regulations, 2015.
(F) Unclaimed Shares lying in Demat Suspense Account
The Company was not required to transfer any shares in Demat Suspense Account. Accordingly, the disclosure required to
be made in terms of Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, in respect of shares in the demat suspense account or unclaimed suspense account, is not applicable to
the Company.
This Corporate Governance Report of the Company for the financial year ended 31st March, 2020 are in compliance with
the requirements of Corporate Governance as prescribed under Regulations 17 to 27 and clause (b) to (i) of sub- regulation
(2) of Regulation 46 of the SEBI LODR, to the extent applicable to the Company.
92 |
ANNUAL DECLARATION BY CHIEF EXECUTIVE OFFICER PURSUANT TO REGULATION 34(3) READ WITH SCHEDULE-V OF
THE SEBI (LISTING OBLIGATION AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
I confirm that for the year under review, directors and senior management have affirmed their adherence to the provisions of the Code
of Conduct.
Sd/-
Date: July 3, 2020 Gagan Banga
Place: Mumbai Vice-Chairman, Managing Director & CEO
CEO/CFO CERTIFICATION PURSUANT TO REGULATION 17(8) READ WITH PART-B OF SCHEDULE-II OF THE SEBI
(LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
To
The Board of Directors
Indiabulls Housing Finance Limited
As required by Regulation 17(8) read with Part-B of Schedule-II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, we hereby confirm to the Board that:
A. We have reviewed financial statements and the cash flow statement for the year ended March 31, 2020 and that to the best of
our knowledge and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(2) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors
and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the
steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated to the auditors and the Audit committee that:
(1) There were no significant changes in internal control over financial reporting during the year;
(2) There were no significant changes in accounting policies during the year and that the same have been disclosed in the
notes to the financial statements; and
(3) There were no instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Company’s internal control system over financial reporting.
Sd/- Sd/-
Gagan Banga Mukesh Garg
Vice-Chairman, Managing Director & CEO CFO
Date: July 3, 2020
Place: Mumbai
| 93
CERTIFICATE REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

To
The Members of
Indiabulls Housing Finance Limited
We have examined the compliance of conditions of Corporate Governance by Indiabulls Housing Finance Limited (“the Company”), for
the year ended March 31, 2020, as prescribed in Regulations 17 to 27, 46 (2) (b) to (i) and para C, D and E of Schedule V of Chapter IV of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR).
We state that the compliance of conditions of Corporate Governance is the responsibility of the Company’s management and, our
examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion, and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned SEBI LODR.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
We further state that none of the directors on the board of the company have been debarred or disqualified from being appointed or
continuing as directors of companies by the Board/Ministry of Corporate Affairs or any such statutory authority.
This certificate is issued solely for the purposes of complying with the aforesaid Regulations and may not be suitable for any other
purpose.
For S. K. Hota & Associates
Company Secretaries
Sd/-
S. K. Hota
Proprietor
Date: August 10, 2020 Membership No: ACS 16165
Place: New Delhi CP No. 6425
UDIN: A016165B000566583
94 |
INDEPENDENT AUDITOR’S REPORT

To the Members of Indiabulls Housing Finance Limited on the Company’s borrowers, the Holding Company has debited
impairment on financial instruments amounting to Rs.1,798 crores
Report on the Audit of the Consolidated Ind AS Financial
(net of tax impact) to Other Comprehensive Income which should
Statements
have been debited to the Statement of Profit and Loss as required
Qualified Opinion by Ind AS 109 “Financial Instruments”. The above pertains only
to accounting treatment as prescribed in Ind AS 109 “Financial
We have audited the accompanying consolidated Ind AS financial Instruments” and constitutes a departure therefrom. Had the
statements of Indiabulls Housing Finance Limited (hereinafter Holding Company recorded the amount of impairment on financial
referred to as “the Holding Company”), its subsidiaries (the instruments in the Statement of Profit and Loss, the profit after tax
Holding Company and its subsidiaries together referred to as “the would have reduced by Rs.1,798 crores. As noted in Note 22(11d)
Group”) and its associates comprising of the consolidated Balance of the consolidated financial statements, due to this there is no
sheet as at March 31 2020, the consolidated Statement of Profit resultant impact on the carrying value of the total equity, assets
and Loss, including other comprehensive income, the consolidated and liabilities of the Company.
Cash Flow Statement and the consolidated Statement of Changes
in Equity for the year then ended, and notes to the consolidated We conducted our audit of the consolidated Ind AS financial
Ind AS financial statements, including a summary of significant statements in accordance with the Standards on Auditing (SAs),
accounting policies and other explanatory information (hereinafter as specified under section 143(10) of the Act. Our responsibilities
referred to as “the consolidated Ind AS financial statements”). under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Consolidated Ind AS Financial
In our opinion and to the best of our information and according Statements’ section of our report. We are independent of the
to the explanations given to us and based on the consideration Group and associate in accordance with the ‘Code of Ethics’ issued
of reports of other auditors on separate financial statements by the Institute of Chartered Accountants of India together with
and on the other financial information of the subsidiaries and the ethical requirements that are relevant to our audit of the
associate, except for the effects of the matters described in the financial statements under the provisions of the Act and the Rules
‘Basis for Qualified Opinion’ section of our report, the aforesaid thereunder, and we have fulfilled our other ethical responsibilities
consolidated Ind AS financial statements give the information in accordance with these requirements and the Code of Ethics.
required by the Companies Act, 2013, as amended (“the Act”) in We believe that the audit evidence we have obtained is sufficient
the manner so required and give a true and fair view in conformity and appropriate to provide a basis for our audit opinion on the
with the accounting principles generally accepted in India, of consolidated Ind AS financial statements.
the consolidated state of affairs of the Group and its associate
as at March 31, 2020, their consolidated profit including other Emphasis of Matter
comprehensive income, their consolidated cash flows and the
In respect of Holding Company
consolidated statement of changes in equity for the year ended
on that date. a. We draw attention to Note 44(1A) of the financial
statements which describes the uncertainties relating to
Basis for Qualified Opinion
the impact of COVID-19 pandemic including the recovery
In respect of the consolidated financial statements, as explained in of the real estate sector and the Indian economy, for which
note 10(4) the gain on deemed disposal of the Holding Company’s management has considered the information available till
investment in associate arising due to a reduction of its effective the date of these financial statements in developing its
holding in the associate and consequent loss of significant estimates of the Expected credit loss provision required
influence has been recorded in other comprehensive income. as at March 31, 2020. The Company’s operations and
The above pertains only to accounting treatment as prescribed financial results will depend on future developments, which
in Ind AS 28 “Investments in Associates and Joint Ventures” and are highly uncertain and the actual credit loss could be
constitutes a departure therefrom which requires that difference different than that estimated as of the date of the financial
between the fair value on the date of cessation of the associate statements. Our opinion is not modified in respect of this
and carrying value of the associate needs to be recognized in the matter.
Statement of Profit and Loss. Had this gain on deemed disposal of
b. We draw attention to Note 22(11b) of the financial
the Company’s investment in associate recorded in the Statement
statements which states that the Company has debited
of Profit and Loss, the profit after tax would have increased by
Rs.964.71 crores for the impairment loss allowance in
Rs.1,802.33 crores. As noted in Note 10(4) of the consolidated
the Additional Reserve created under section 29 (c) of
financial statements, due to this there is no resultant impact on
NHB Act, 1987 as per NHB circular no. NHB (ND)/DRS/
the carrying value of the total equity, assets and liabilities of the
Pol-No.03/2004-05 dated August 26, 2004 (“Additional
Company.
Reserve u/s 29 (c)”) instead of recording the impairment in
In respect of Holding Company, as more fully explained in Note statement of profit and loss. Given that the utilization of
22(11a) to the consolidated financial statements, which explain the Additional Reserve u/s 29(c) is in accordance with the
the impairment on financial instruments recorded during the NHB Act, 1987, our opinion is not modified in respect of this
year ended March 31, 2020, including due to impact of COVID-19 matter.
| 95
In respect of Component – Indiabulls Commercial Credit Limited forming our opinion thereon, and we do not provide a separate
as reported by Component auditor opinion on these matters. For each matter below, our description
of how our audit addressed the matter is provided in that context.
We draw attention to Note 44(2) to the accompanying Statement
which describes the effects of uncertainties relating to COVID – We have determined the matters described below to be the key
19 pandemic outbreak on the Company’s operations, that are audit matters to be communicated in our report. We have fulfilled
dependent upon future developments, and the impact thereof the responsibilities described in the Auditor’s responsibilities for
on the Company’s estimates of impairment of loans to customers the audit of the consolidated Ind AS financial statements section
outstanding as at March 31, 2020, and that such estimates may of our report, including in relation to these matters. Accordingly,
be affected by the severity and duration of the pandemic. Our our audit included the performance of procedures designed to
opinion is not modified in respect of this matter. respond to our assessment of the risks of material misstatement of
the consolidated Ind AS financial statements. The results of audit
Key Audit Matters
procedures performed by us and by other auditors of components
Key audit matters are those matters that, in our professional not audited by us, as reported by them in their audit reports
judgment, were of most significance in our audit of the consolidated furnished to us by the management, including those procedures
Ind AS financial statements for the financial year ended March 31, performed to address the matters below, provide the basis for our
2020. These matters were addressed in the context of our audit audit opinion on the accompanying consolidated Ind AS financial
of the consolidated Ind AS financial statements as a whole, and in statements.
Key audit matters How our audit addressed the key audit matter
Impairment of financial instruments (including provision for expected credit losses) (as described in note 9 of the Ind AS financial
statements)
Ind AS 109 requires the Group to provide for impairment of its • Our audit procedures included considering the Group’s
financial assets using the expected credit loss (‘ECL’) approach accounting policies for impairment of loan receivables
involving an estimation of probability of loss on the financial and assessing compliance with the policies in terms of
assets over their life, considering reasonable and supportable Ind AS 109.
information about past events, current conditions and forecasts of
• Tested the assumptions used by the Group for grouping
future economic conditions which could impact the credit quality
and staging of loan portfolio into various categories and
of the group’s loans and advances. In the process, a significant
default buckets for determining the PD and LGD rates.
degree of judgement has been applied by the management in
respect of following matters: • Tested the operating effectiveness of the controls for
staging of loans based on their past-due status. Tested a
• The group has various loan products divided into Corporate
sample of performing (stage 1) loans to assess whether any
loan portfolio and Retail loan portfolio. Retail loans
loss indicators were present requiring them to be classified
are grouped into different categories on the basis of
under stage 2 or 3.
homogeneity and thereby expected to demonstrate similar
credit characteristics. Corporate loan portfolio is assessed • Tested the input data used for determining the PD and LGD
on a case to case basis. rates and agreed the data with the underlying books of
accounts and records.
• Estimation of losses in respect of those groups of loans
which had no/ minimal defaults in the past. • Performed inquiries with the Group’s management and
its risk management function to assess the impact of lock-
• Staging of loans and estimation of behavioral life.
down on the business activities of the Company.
• Management overlay for macro-economic factors and
• Assessed the group’s policy with respect to moratorium
estimation of their impact on the credit quality.
pursuant to the RBI circular and tested the implementation
The group has developed models that derive key assumptions of such policy on a sample basis.
used within the provision calculation such as probability of default
• Assessed the additional considerations applied by the
(PD) and loss given default (LGD).
management for staging of loans as SICR/ default in view of
The output of these models is then applied to the provision group’s policy on moratorium.
calculation with other information including and the exposure at
• Tested assumptions used by the management in
default (EAD).
determining the overlay for macro-economic factors
Additional considerations on account of CoVID-19 (including CoVID-19 pandemic).
Pursuant to the Reserve Bank of India circular dated March 27, • Tested the arithmetical accuracy of computation of ECL
2020 (“RBI circular”) allowing lending institutions to offer a provision performed by the Group in spreadsheets.
moratorium to customers on payment of instalments falling
due between March 1, 2020 and May 31, 2020, the group has
extended a moratorium to its borrower in accordance with its
Board approved policy as described in Note 44.
96 |
In accordance with the guidance from Institute of Chartered • Compared the disclosures included in the Ind AS financial
Accountants of India (ICAI), extension of the moratorium to statements in respect of expected credit losses with the
borrowers by itself is not considered to result in a SICR for a requirements of Ind AS 107 and 109. Reviewed specific
borrower, however the entity needs to evaluate whether the disclosures made in the Ind AS financial statements with
borrowers to which moratorium is granted will remain regular regards to the impact of CoVID-19 on ECL estimation.
once the moratorium period gets over. The group has recorded
a management overlay as part of its ECL, to reflect among other
things an increased risk of deterioration in macro-economic
factors caused by Novel Coronavirus (CoVID-19) pandemic. In
accordance with the guidance in Ind AS 109, the management
overlay estimate takes into account reasonably and supportable
information without incurring significant cost. The actual credit
losses for the next 12 months could be significantly different than
the ECL estimates prepared by the Company depending upon the
impact and duration of the pandemic and various regulatory and
policy measures announced by the Government.
Given the high degree of management’s judgement involved in
estimation of ECL, it is an area of material uncertainty and a key
audit matter.
Fair valuation of financial assets held at fair value through other comprehensive income (“FVTOCI”) or fair value through profit and
loss (“FVTPL”) (collectively “fair value”)
The Holding Company has classified financial assets amounting • Understood and tested the design and operating
to Rs.2,904.30 as held at fair value through OCI (FVTOCI) and effectiveness of the Company’s control over the assessment
Rs.7,878.58 crores as held at fair value through profit and loss of valuation of investments.
(FVTPL) in accordance with Ind AS 109. Additionally, the Company
• Involved the auditor’s expert to assess the reasonableness
is also required to disclose fair value of its financial assets and
of the valuation methodology and underlying assumptions
liabilities held at amortized cost in accordance with Ind AS 107.
used by the management to estimate the fair value for
The determination of the fair value of financial assets is considered sample of investments.
to be a significant area in view of the materiality of amounts
• Obtain the valuation reports from external valuers,
involved, judgements involved in selecting the valuation basis, and
information available in public domain to assess the value
use of unobservable inputs.
of investment determined by the Company.
Given the inherent subjectivity in the valuation of the above
• Validated the source data and tested the arithmetical
investments, relative significance of these investments to the
accuracy of the calculation of valuation of investments.
financial statements and the nature and extent of audit procedures
involved, we determined this to be a key audit matter. • Assessed the adequacy of disclosure in the financial
statements.
Other Information Responsibilities of Management for the Consolidated Ind AS
Financial Statements
The Holding Company’s Board of Directors is responsible for
the other information. The other information comprises the The Holding Company’s Board of Directors is responsible for the
information included in the Chairman’s speech and Director’s preparation and presentation of these consolidated Ind AS financial
Report, but does not include the consolidated Ind AS financial statements in terms of the requirements of the Act that give a true
statements and our auditor’s report thereon. and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income,
Our opinion on the consolidated Ind AS financial statements does consolidated cash flows and consolidated statement of changes
not cover the other information and we do not express any form in equity of the Group including its associate in accordance with
of assurance conclusion thereon. the accounting principles generally accepted in India, including the
In connection with our audit of the consolidated Ind AS financial Indian Accounting Standards (Ind AS) specified under section 133
statements, our responsibility is to read the other information of the Act read with the Companies (Indian Accounting Standards)
and, in doing so, consider whether such other information is Rules, 2015, as amended. The respective Board of Directors of
materially inconsistent with the consolidated financial statements the companies included in the Group and of its associate are
or our knowledge obtained in the audit or otherwise appears to responsible for maintenance of adequate accounting records
be materially misstated. If, based on the work we have performed, in accordance with the provisions of the Act for safeguarding of
we conclude that there is a material misstatement of this other the assets of the Group and of its associate and for preventing
information, we are required to report that fact. We have nothing and detecting frauds and other irregularities; selection and
to report in this regard. application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the design,
| 97
implementation and maintenance of adequate internal financial attention in our auditor’s report to the related disclosures
controls, that were operating effectively for ensuring the accuracy in the consolidated Ind AS financial statements or, if such
and completeness of the accounting records, relevant to the disclosures are inadequate, to modify our opinion. Our
preparation and presentation of the consolidated Ind AS financial conclusions are based on the audit evidence obtained up to
statements that give a true and fair view and are free from the date of our auditor’s report. However, future events or
material misstatement, whether due to fraud or error, which have conditions may cause the Group and its associate to cease
been used for the purpose of preparation of the consolidated Ind to continue as a going concern.
AS financial statements by the Directors of the Holding Company,
• Evaluate the overall presentation, structure and content of
as aforesaid.
the consolidated Ind AS financial statements, including the
In preparing the consolidated Ind AS financial statements, the disclosures, and whether the consolidated Ind AS financial
respective Board of Directors of the companies included in the statements represent the underlying transactions and
Group and of its associate are responsible for assessing the ability events in a manner that achieves fair presentation.
of the Group and of its associate to continue as a going concern,
• Obtain sufficient appropriate audit evidence regarding
disclosing, as applicable, matters related to going concern and
the financial information of the entities or business
using the going concern basis of accounting unless management
activities within the Group and its associate of which we
either intends to liquidate the Group or to cease operations, or has
are the independent auditors, to express an opinion on
no realistic alternative but to do so.
the consolidated Ind AS financial statements. We are
Those respective Board of Directors of the companies included in responsible for the direction, supervision and performance
the Group and of its associate are also responsible for overseeing of the audit of the financial statements of such entities
the financial reporting process of the Group and of its associate. included in the consolidated financial statements of which
we are the independent auditors. For the other entities
Auditor’s Responsibilities for the Audit of the Consolidated Ind
included in the consolidated Ind AS financial statements,
AS Financial Statements
which have been audited by other auditors, such other
Our objectives are to obtain reasonable assurance about whether auditors remain responsible for the direction, supervision
the consolidated Ind AS financial statements as a whole are free and performance of the audits carried out by them. We
from material misstatement, whether due to fraud or error, and remain solely responsible for our audit opinion.
to issue an auditor’s report that includes our opinion. Reasonable
We communicate with those charged with governance of
assurance is a high level of assurance, but is not a guarantee that
the Holding Company and such other entities included in the
an audit conducted in accordance with SAs will always detect a
consolidated Ind AS financial statements of which we are the
material misstatement when it exists. Misstatements can arise
independent auditors regarding, among other matters, the
from fraud or error and are considered material if, individually or
planned scope and timing of the audit and significant audit
in the aggregate, they could reasonably be expected to influence
findings, including any significant deficiencies in internal control
the economic decisions of users taken on the basis of these
that we identify during our audit.
consolidated Ind AS financial statements.
We also provide those charged with governance with a statement
As part of an audit in accordance with SAs, we exercise professional
that we have complied with relevant ethical requirements
judgment and maintain professional skepticism throughout the
regarding independence, and to communicate with them all
audit. We also:
relationships and other matters that may reasonably be thought
• Identify and assess the risks of material misstatement of to bear on our independence, and where applicable, related
the consolidated Ind AS financial statements, whether due safeguards.
to fraud or error, design and perform audit procedures
From the matters communicated with those charged with
responsive to those risks, and obtain audit evidence that is
governance, we determine those matters that were of most
sufficient and appropriate to provide a basis for our opinion.
significance in the audit of the consolidated Ind AS financial
The risk of not detecting a material misstatement resulting
statements for the financial year ended March 31, 2020 and are
from fraud is higher than for one resulting from error, as
therefore the key audit matters. We describe these matters in our
fraud may involve collusion, forgery, intentional omissions,
auditor’s report unless law or regulation precludes public disclosure
misrepresentations, or the override of internal control.
about the matter or when, in extremely rare circumstances, we
• Obtain an understanding of internal control relevant to determine that a matter should not be communicated in our
the audit in order to design audit procedures that are report because the adverse consequences of doing so would
appropriate in the circumstances. Under section 143(3)(i) of reasonably be expected to outweigh the public interest benefits
the Act, we are also responsible for expressing our opinion of such communication.
on whether the Holding Company has adequate internal
Other Matter
financial controls with reference to financial statements in
place and the operating effectiveness of such controls. (a) We did not audit the financial statements and other
financial information, in respect of 15 subsidiaries, whose
• Evaluate the appropriateness of accounting policies used
Ind AS financial statements include total assets of Rs
and the reasonableness of accounting estimates and related
16,690.02 crores as at March 31, 2020, and total revenues
disclosures made by management.
of Rs 2,267.10 crores and net cash inflows of Rs.1,526.73
• Conclude on the appropriateness of management’s use crores for the year ended on that date. These Ind AS
of the going concern basis of accounting and, based financial statement and other financial information have
on the audit evidence obtained, whether a material been audited by other auditors, which financial statements,
uncertainty exists related to events or conditions that may other financial information and auditor’s reports have been
cast significant doubt on the ability of the Group and its furnished to us by the management. The consolidated Ind
associate to continue as a going concern. If we conclude AS financial statements also include the Group’s share of
that a material uncertainty exists, we are required to draw net profit of Rs. 33.88 crores for the year ended March 31,
98 |
2020, as considered in the consolidated Ind AS financial (e) On the basis of the written representations received from
statements, in respect of 1 associate, whose financial the directors of the Holding Company as on March 31, 2020
statements, other financial information have been audited taken on record by the Board of Directors of the Holding
by other auditors and whose reports have been furnished Company and the reports of the statutory auditors who are
to us by the Management. Our opinion on the consolidated appointed under Section 139 of the Act, of its subsidiary
Ind AS financial statements, in so far as it relates to the companies and associate companies, none of the directors
amounts and disclosures included in respect of these of the Group’s companies and its associate, incorporated
subsidiaries and associate, and our report in terms of sub- in India, is disqualified as on March 31, 2020 from being
sections (3) of Section 143 of the Act, in so far as it relates appointed as a director in terms of Section 164 (2) of the
to the aforesaid subsidiaries and associate, is based solely Act;
on the reports of such other auditors.
(f) With respect to the adequacy and the operating effectiveness
(b) The accompanying consolidated Ind AS financial statements of the internal financial controls over financial reporting
include unaudited financial statements and other with reference to these consolidated Ind AS financial
unaudited financial information in respect of 1 subsidiary, statements of the group and its associate, incorporated in
whose financial statements and other financial information India, refer to our separate Report in “Annexure 1” to this
reflect total assets of Rs 0.34 crores as at March 31, 2020, report;
and total revenues of Rs 0.01 crores and net cash outflows
of Rs 0.03 crores for the year ended on that date. These (g) In our opinion and based on the based on the consideration
unaudited financial statements and other unaudited of reports of other statutory auditors of the subsidiaries,
financial information have been furnished to us by the the managerial remuneration for the year ended March
management. Our opinion, in so far as it relates amounts 31, 2020 has been paid / provided by the Company to its
and disclosures included in respect of the subsidiary, and directors in accordance with the provisions of section 197
our report in terms of sub-sections (3) of Section 143 of read with Schedule V to the Act.
the Act in so far as it relates to the aforesaid subsidiary, is Further, based on the consideration of reports of other
based solely on such unaudited financial statements and statutory auditors of the subsidiaries, the managerial
other unaudited financial information. In our opinion and remuneration for the year ended March 31, 2020 has been
according to the information and explanations given to us paid / provided by the subsidiaries incorporated in India
by the Management, these financial statements and other to their directors are in accordance with the provisions of
financial information are not material to the Group. section 197 read with Schedule V to the Act;
Our opinion above on the consolidated Ind AS financial statements, (h) With respect to the other matters to be included in
and our report on Other Legal and Regulatory Requirements below, the Auditor’s Report in accordance with Rule 11 of the
is not modified in respect of the above matters with respect to our Companies (Audit and Auditors) Rules, 2014, as amended,
reliance on the work done and the reports of the other auditors in our opinion and to the best of our information and
and the financial statements and other financial information according to the explanations given to us and based on
certified by the Management. the consideration of the report of the other auditors on
Report on Other Legal and Regulatory Requirements separate financial statements as also the other financial
information of the subsidiaries and associate:
As required by Section 143(3) of the Act, based on our audit
and on the consideration of report of the other auditors on i. The consolidated Ind AS financial statements disclose
separate financial statements and the other financial information the impact of pending litigations on its consolidated
of subsidiaries and associate, as noted in the ‘other matter’ financial position of the Group and its associate in
paragraph we report, to the extent applicable, that: its consolidated Ind AS financial statements – Refer
Note 33(vi) and Note 34 to the consolidated Ind AS
(a) We/the other auditors whose report we have relied financial statements;
upon have sought and obtained all the information and
explanations which to the best of our knowledge and ii. Provision has been made in the consolidated Ind
belief were necessary for the purposes of our audit of the AS financial statements, as required under the
aforesaid consolidated Ind AS financial statements; applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts
(b) In our opinion, except for the effects of the matter described including derivative contracts – Refer Note 7 and Note
in the basis for Qualified Opinion paragraph above proper 28 to the consolidated Ind AS financial statements in
books of account as required by law relating to preparation respect of such items as it relates to the Group;
of the aforesaid consolidation of the financial statements
have been kept so far as it appears from our examination of iii. There has been no delay in transferring amounts,
those books and reports of the other auditors; required to be transferred, to the Investor Education
and Protection Fund by the Holding Company and its
(c) The Consolidated Balance Sheet, the Consolidated subsidiaries, incorporated in India during the year
Statement of Profit and Loss including the Statement of ended March 31, 2020.
Other Comprehensive Income, the Consolidated Cash Flow
Statement and Consolidated Statement of Changes in Equity For S.R. Batliboi & Co. LLP
dealt with by this Report are in agreement with the books Chartered Accountants
of account maintained for the purpose of preparation of the ICAI Firm Registration Number: 301003E/E300005
consolidated Ind AS financial statements;
per Viren H. Mehta
(d) In our opinion, except for the effects of the matter described Partner
in the Basis for Qualified Opinion paragraph above, in Membership Number: 048749
our opinion, the aforesaid consolidated Ind AS financial UDIN: 20048749AAAAJS4725
statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended; Mumbai
July 3, 2020
| 99
Annexure 1 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 Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial referred to in the Other Matters paragraph below, is sufficient and
statements of Indiabulls Housing Finance Limited as of and for the appropriate to provide a basis for our audit opinion on the Holding
year ended March 31, 2020, we have audited the internal financial Company’s internal financial controls over financial reporting with
controls over financial reporting of Indiabulls Housing Finance reference to these consolidated financial statements.
Limited (hereinafter referred to as the “Holding Company”) and its
Meaning of Internal Financial Controls Over Financial Reporting
subsidiary companies, which are companies incorporated in India,
With Reference to these Consolidated Financial Statements
as of that date.
A company’s internal financial control over financial reporting with
Management’s Responsibility for Internal Financial Controls
reference to these consolidated financial statements is a process
The respective Board of Directors of the Holding company and its designed to provide reasonable assurance regarding the reliability
subsidiary companies, which are companies incorporated in India, of financial reporting and the preparation of financial statements
are responsible for establishing and maintaining internal financial for external purposes in accordance with generally accepted
controls based on, “the internal financial control over financial accounting principles. A company’s internal financial control over
reporting criteria established by the Company considering the financial reporting with reference to these consolidated financial
essential components of internal control stated in the Guidance statements includes those policies and procedures that (1)
Note on Audit of Internal Financial Controls Over Financial pertain to the maintenance of records that, in reasonable detail,
Reporting issued by the Institute of Chartered Accountants of India accurately and fairly reflect the transactions and dispositions of
(ICAI)”. These responsibilities include the design, implementation the assets of the company; (2) provide reasonable assurance that
and maintenance of adequate internal financial controls that were transactions are recorded as necessary to permit preparation
operating effectively for ensuring the orderly and efficient conduct of financial statements in accordance with generally accepted
of its business, including adherence to the respective company’s accounting principles, and that receipts and expenditures of the
policies, the safeguarding of its assets, the prevention and company are being made only in accordance with authorisations
detection of frauds and errors, the accuracy and completeness of management and directors of the company; and (3) provide
of the accounting records, and the timely preparation of reliable reasonable assurance regarding prevention or timely detection
financial information, as required under the Companies Act, 2013. of unauthorised acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Auditor’s Responsibility
Inherent Limitations of Internal Financial Controls Over Financial
Our responsibility is to express an opinion on the company’s
Reporting With Reference to these Consolidated Financial
internal financial controls over financial reporting with reference
Statements
to these consolidated financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note Because of the inherent limitations of internal financial controls
on Audit of Internal Financial Controls Over Financial Reporting over financial reporting with reference to these consolidated
(the “Guidance Note”) and the Standards on Auditing, specified financial statements, including the possibility of collusion
under section 143(10) of the Companies Act, 2013, to the extent or improper management override of controls, material
applicable to an audit of internal financial controls, both issued by misstatements due to error or fraud may occur and not be
the Institute of Chartered Accountants of India. Those Standards detected. Also, projections of any evaluation of the internal
and the Guidance Note require that we comply with ethical financial controls over financial reporting with reference to these
requirements and plan and perform the audit to obtain reasonable consolidated financial statements to future periods are subject to
assurance about whether adequate internal financial controls over the risk that the internal financial control over financial reporting
financial reporting with reference to these consolidated financial with reference to these consolidated financial statements may
statements was established and maintained and if such controls become inadequate because of changes in conditions, or that
operated effectively in all material respects. the degree of compliance with the policies or procedures may
deteriorate.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls Qualified Opinion
over financial reporting with reference to these consolidated
According to the information and explanations given to us and
financial statements and their operating effectiveness. Our audit
based on the report issued by other auditors on internal financial
of internal financial controls over financial reporting included
controls over financial reporting in case of its subsidiary companies,
obtaining an understanding of internal financial controls over
which are companies incorporated in India, the following have
financial reporting with reference to these consolidated financial
been identified as at March 31, 2020:
statements, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness a) The Holding Company in all material respects, maintained
of internal control based on the assessed risk. The procedures adequate internal financial controls over financial reporting
selected depend on the auditor’s judgement, including the with reference to these standalone financial statements
assessment of the risks of material misstatement of the financial as of March 31, 2020, based on the internal control over
statements, whether due to fraud or error. financial reporting criteria established by the Company
considering the essential components of internal control
We believe that the audit evidence we have obtained and the audit
stated in the Guidance Note on Audit of Internal Financial
evidence obtained by the other auditors in terms of their reports
100 |
Controls Over Financial Reporting issued by the Institute Other Matters

of Chartered Accountants of India, except for the material
Our report under Section 143(3)(i) of the Act on the adequacy
weakness relating to departure from Indian Accounting
and operating effectiveness of the internal financial controls over
Standards (Ind AS) specified under section 133 of the Act
read with the Companies (Indian Accounting Standards)
statements insofar as it relates to 12 subsidiary companies, which
Rules, 2015 for the preparation of the financial statements
are companies incorporated in India, is based on the corresponding
as more fully described in paragraph “Basis for Qualified
reports of the auditors of such companies incorporated in India.
Opinion” of our audit report dated July 3, 2020;
We also have audited, in accordance with the Standards on
A ‘material weakness’ is a deficiency, or a combination of
Auditing issued by the Institute of Chartered Accountants of India,
deficiencies, in internal financial control over financial reporting,
the consolidated financial statements of the Holding Company,
such that there is a reasonable possibility that a material
which comprise the Consolidated Balance Sheet as at March 31,
misstatement of the holding company’s annual or interim
2020, and the Consolidated Statement of Profit and Loss and
consolidated financial statements will not be prevented or
Consolidated Cash Flow Statement for the year then ended, and a
detected on a timely basis.
summary of significant accounting policies and other explanatory
In our opinion, except for the of the material weakness described information, and our report dated July 3, 2020 expressed a
above on the achievement of the objectives of the control criteria qualified opinion on those financial statements.
in respect of the Holding Company and a subsidiary Companies,
For S.R. Batliboi & CO. LLP
which are companies incorporated in India, have, maintained in
Chartered Accountants
all material respects, adequate internal financial controls over
ICAI Firm Registration Number: 301003E/E300005
statements and such internal financial controls over financial
reporting were operating effectively as at March 31, 2020, based on per Viren H. Mehta
, “the internal control over financial reporting criteria established Partner
by the Holding Company considering the essential components of Membership Number: 048749
internal control stated in the Guidance Note on Audit of Internal UDIN : 20048749AAAAJS4725
Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India”.
Mumbai
July 3, 2020
| 101
CONSOLIDATED BALANCE SHEET

of Indiabulls Housing Finance Limited Group as at March 31, 2020
(All amount in Rs. in Crore, except for share data unless stated otherwise)
Particulars Note As at As at
No. March 31, 2020 March 31, 2019
ASSETS
Financial Assets
Cash and cash equivalents 5 13,564.59 13,902.82
Bank balance other than Cash and cash equivalents 6 1,474.06 718.43
Derivative financial instruments 7 739.18 135.75
Receivables
i) Trade Receivables 8 28.84 35.95
ii) Other Receivables - -
Loans 9 70,211.44 92,387.19
Investments 10 12,277.46 19,716.61
Other financial assets 11 1,420.83 1,579.09
Non- Financial Assets
Current tax assets (net) 1,214.90 817.63
Deferred tax assets (net) 32 388.28 114.38
Property, plant and equipment 12 120.67 134.69
Goodwill 57.83 57.83
Other Intangible assets 12 18.06 21.31
Right-of-use assets 43 253.29 -
Other Non- Financial Assets 13 433.18 482.24
Non-current Assets Held for Sale 669.42 -
Total Assets 102,872.03 130,103.92
LIABILITIES AND EQUITY
LIABILITIES
Financial Liabilities
Payables
(I) Trade Payables 14
(i) total outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises and small 11.70 32.29
enterprises
Debt Securities 15 32,617.01 49,395.61
Borrowings (Other than Debt Securities) 16 42,370.02 51,687.25
Subordinated liabilities 17 4,687.46 4,673.34
Other financial liabilities 18 6,573.18 6,819.14
Non Financial Liabilities
Current tax liabilities (net) 69.31 64.40
Provisions 19 196.95 176.13
Other Non-Financial Liabilities 20 620.93 667.68
Equity
Equity share capital 21 83.83 85.48
Other equity 22 15,453.82 16,396.64
Total Liabilities and Equity 102,872.03 130,103.92
In terms of our report attached
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors
ICAI Firm registration No. 301003E/E300005 Sameer Gehlaut Gagan Banga
Chartered Accountants Chairman / Whole Time Director Vice Chairman / Managing Director & CEO
DIN : 00060783 DIN : 00010894
London Mumbai
per Viren H. Mehta Ashwini Omprakash Kumar Mukesh Garg Amit Jain
Partner Whole Time Director CFO Company Secretary
Membership No. 048749 DIN : 03341114 New Delhi Gurugram
Mumbai
Mumbai, July 3, 2020 July 3, 2020

102 |
CONSOLIDATED STATEMENT OF PROFIT AND LOSS

of Indiabulls Housing Finance Limited Group for the Year ended March 31, 2020
Particulars Note Year ended Year ended

No. March 31, 2020 March 31, 2019
Revenue from operations
Interest Income 23 11,548.60 14,855.95
Dividend Income 24 863.04 472.60
Fees and commission Income 25 351.79 449.97
Net gain on fair value changes 26 - 568.05
Net gain on derecognition of financial instruments under amortised cost category 453.01 673.05
Total revenue from operations 13,216.44 17,019.62
Other Income 27 6.79 7.42
Total Income 13,223.23 17,027.04
Expenses
Finance Costs 28 8,511.92 9,725.53
Net loss on fair value changes 26 119.96 -
Impairment on financial instruments 29 1,062.78 577.58
Employee Benefits Expenses 30 604.81 777.45
Depreciation, amortization and impairment 12 & 43(c) 107.84 42.75
Other expenses 31 255.03 299.75
Total Expenses 10,662.34 11,423.06
Profit before tax 2,560.89 5,603.98
Tax Expense:
(1) Current Tax 32 371.19 1,192.70
(2) Deferred Tax Charge / (Credit) 32 23.78 353.49
Profit for the year 2,165.92 4,057.79
Add: Share in Profit of Associate 33.88 32.74
Net Profit after Taxes, Minority Interest and Share of Profit of Associate 2,199.80 4,090.53
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss
(a) Remeasurement gain on defined benefit plan 9.58 4.98
(b) Gain on equity instrument designated at FVOCI 2,054.77 11.39
(c) Impairment allowance (2,402.72) -
(ii) Income tax impact on above 83.47 (4.18)
B (i) Items that will be reclassified
(a) Derivative instruments in Cash flow hedge relationship (126.11) (26.94)
(ii) Income tax impact on above 16.34 9.42
Other Comprehensive loss (A+B) (364.67) (5.34)
Total Comprehensive Income for the Year 1,835.13 4,085.19
Earnings per equity share
Basic (Rs.) 38 51.70 95.83
Diluted (Rs.) 38 51.69 95.26
Nominal value per share (Rs.) 2.00 2.00
DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai

| 103
CONSOLIDATED CASH FLOW STATEMENT

Year ended Year ended

March 31, 2020 March 31, 2019
A Cash flows from operating activities :
Adjustments to reconcile profit before tax to net cash flows:
Employee Stock Compensation 29.69 77.88
Provision for Gratuity, Compensated Absences and Superannuation Expense 29.99 28.33
Impairment on financial instruments 850.95 602.26
Interest Income (11,548.60) (15,529.01)
Dividend Income (863.04) (472.60)
Gain on modification of leases (1.09) -
Interest Expense 8,276.01 9,543.87
Depreciation and Amortisation 107.84 42.75
Provision for Diminution in value of Investment 636.61 0.05
Loss on sale of Property, plant and equipment 2.33 1.15
Unrealised gains on appreciation of Investments (188.75) (29.77)
Operating Loss before working capital changes (107.17) (131.11)
Working Capital Changes
Trade Receivables, Other Financial and non Financial Assets (473.62) (405.93)
Loans 17,733.83 17,048.36
Trade Payables, other financial and non Financial Liabilities 223.55 684.52
Cash from operations 17,376.59 17,195.84
Interest received on loans 11,137.72 14,958.45
Interest paid on borrowings (8,777.58) (9,519.41)
Income taxes paid (Net) (405.68) (1,428.87)
Net cash from operating activities 19,331.05 21,206.01
B Cash flows from investing activities :
Purchase of Property, plant and equipment and other intangible assets (34.58) (89.39)
Sale of Property, plant and equipment 0.86 0.53
Movement in Capital Advances 3.01 (11.54)
Investments in deposit accounts (755.63) (103.77)
Proceeds from / (Investments in) Mutual Funds / Other Investments (Net) 13,214.24 (4,737.98)
Dividend Received 863.04 472.60
Interest received on Investments 592.78 362.63
Investments in Other Investments (Net) (4,936.47) (113.54)
Investments in Subsidiary / Other Investments (682.31) (0.01)
Net cash from / (used in) investing activities 8,264.94 (4,220.47)
C Cash flows from financing activities :
Proceeds from Issue of Equity Share through ESOPs (Including Securities Premium) 4.99 23.88
Distribution of Equity Dividends (including Corporate Dividend Tax thereon) (1,592.67) (2,057.11)
Share issue expenses - (1.69)
(Repayment of) / Proceeds from bank loans and Others (Net) (11,375.88) 1,584.25
Repayment of Commercial Papers (Net) (5,330.00) (9,420.00)
Repayment of Secured Redeemable Non-Convertible Debentures (Net) (11,439.48) (2,225.61)
Net proceeds from issue of Subordinated Debt 5.00 104.83
Proceeds from Working capital loans (Net) 1,793.82 4,656.35
Net cash (used in) financing activities (27,934.22) (7,335.10)
D Net (Decrease) / Increase in cash and cash equivalents (A+B+C) (338.23) 9,650.44
E Cash and cash equivalents at the beginning of the year 13,902.82 4,252.38
F Cash and cash equivalents at the end of the year (D + E)(Refer Note 5) 13,564.59 13,902.82
Notes:
1 The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Indian Accounting Standard (Ind AS) - 7
on ‘Statement of Cash Flows’.
2 For disclosure of investing and financing activity that do not require cash and cash equivalent (Refer note 33(iv)).
DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai
104 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
a. Equity Share Capital: Numbers Amount

Equity shares of INR 2 each issued, subscribed and fully paid
At 31 March, 2018 426,535,786 85.31
Add: Issued during Financial Year 2018-19 867,553 0.17
At 1 April, 2019 427,403,339 85.48
Add: Issued during Financial Year 2019-20 170,752 0.03
Less: Investment in Treasury Shares (Own Shares) during the FY 2019-20 8,400,000 1.68
At 31 March , 2020 419,174,091 83.83
b. Other Equity:
Reserve & Surplus Other Comprehensive Income Total
Capital Capital Securities Stock General Special Reserve Reserve (II) Reserve (III) Additional Debenture Debenture Share based Foreign Retained Equity Cash flow
Reserve Redemption Premium Compensation Reserve Reserve U/s (I) As per Reserve Redemption Premium Payment Currency earnings instruments hedge
Reserve Account Adjustment 36(I)(viii) of section Fund (U/s Reserve Account reserve Translation through other reserve
Reserve the Income 29C of the 29C of the Reserve comprehensive
Tax Act, Housing National income
1961 Bank Act, Housing
1987 Bank Act,
1987
Balance at 1 April, 2018 13.92 6.36 7,483.25 94.12 745.99 130.18 1,209.21 630.42 1,571.00 664.71 502.44 1.27 1.73 - 1,336.81 (8.15) (110.38) 14,272.88
Profit for the year - - - - - - - - - - - - - - 4,090.53 - - 4,090.53
Other Comprehensive Income - - - - - - - - - - - - - - 3.25 8.74 (17.53) (5.54)
01-24 Company Report
Total comprehensive income - - - - - - - - - - - - - - 4,093.78 8.74 (17.53) 4,084.99

Add: Transferred / Addition during the year - - - 77.88 210.00 43.74 358.85 64.60 387.00 300.00 416.06 0.01 - (0.01) - - - 1,858.13
Add: during the year on Account of ESOPs - - 22.02 - - - - - - - - - - - - - - 22.02
Add: Transfer from Stock Compensation - - 7.47 - - - - - - - - - - - - - - 7.47
Adjustment A/c
Less: Transferred to Securities Premium Account - - - 7.47 - - - - - - - - - - - - - 7.47
Appropriations:-
Interim Dividend paid on Equity Shares @ Rs. 40 - - - - - - - - - - - - - - 1,707.39 - - 1,707.39
Per Share
Corporate Dividend Tax on Interim Dividend paid - - - - - - - - - - - - - - 350.96 - - 350.96
on Equity Shares
Transferred to Reserve III (Reserve U/s 36(1)(viii), - - - - - - - - - - - - - - 387.00 - - 387.00
Considered as eligible transfer to Special Reserve
U/s 29C of the NHB Act, 1987)
25-94 Statutory Report
Transferred to Reserve I (Special Reserve U/s 29C of - - - - - - - - - - - - - - 358.85 - - 358.85

the NHB Act, 1987)
Transferred to Additional Reserve (U/s 29C of the - - - - - - - - - - - - - - 300.00 - - 300.00
NHB Act, 1987)
Transferred to General Reserve - - - - - - - - - - - - - - 210.00 - - 210.00
Transferred to Debenture Redemption Reserve - - - - - - - - - - - - - - 416.06 - - 416.06
Transferred to Special Reserve u/s 36(1)(viii) of the - - - - - - - - - - - - - - 43.74 - - 43.74
Income Tax Act, 1961
Transferred to Reserve I (Special Reserve U/s 45IC - - - - - - - - - - - - - - 64.60 - - 64.60
of the Reserve Bank of India
Corporate Dividend Tax on preference shares - - - - - - - - - - - - - - 2.78 - - 2.78
Total Appropriations - - - - - - - - - - - - - - 3,841.38 - - 3,841.38
At 31 March 2019 13.92 6.36 7,512.74 164.53 955.99 173.92 1,568.06 695.02 1,958.00 964.71 918.50 1.28 1.73 (0.01) 1,589.21 0.59 (127.91) 16,396.64
95-296 Financial Statement
| 105
Profit for the year - - - - - - - - - - - - - - 2,199.80 - - 2,199.80
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
of Indiabulls Housing Finance Limited Group for the Year ended March 31, 2020 (Contd....)
106 |
b. Other Equity (Contd....)
Capital Capital Securities Stock General Special Reserve Reserve (II) Reserve (III) Additional Debenture Debenture Share based Foreign Retained Equity Cash flow
Reserve Redemption Premium Compensation Reserve Reserve U/s (I) As per Reserve Redemption Premium Payment Currency earnings instruments hedge
Reserve Account Adjustment 36(I)(viii) of section Fund (U/s Reserve Account reserve Translation through other reserve
Reserve the Income 29C of the 29C of the Reserve comprehensive
Tax Act, Housing National income
1961 Bank Act, Housing
1987 Bank Act,
1987
Other Comprehensive Income - - - - - - - - - - - - - - 7.24 (276.67) (95.24) (364.67)
Total comprehensive income - - - - - - - - - - - - - - 2,207.04 (276.67) (95.24) 1,835.13
Add: Transferred / Addition during the year - - - 27.32 150.00 - 211.98 3.96 220.00 - 302.68 - 4.40 0.03 - - - 920.37
Add: during the year on Account of ESOPs - - 4.96 - - - - - - - - - - - - - - 4.96
Add: Transfer from Stock Compensation - - 1.32 - - - - - - - - - - - - - - 1.32
Adjustment A/c
Less: Investment in Treasury Shares (Own Shares) - - 258.01 - - - - - - - - - - - - - - 258.01
Less: Transferred to Securities Premium A/c - - - 1.32 - - - - - - - - - - - - - 1.32
Less: Adjusted / Utilised during the year - - - 2.03 - - - - - 964.71 - - - - - - - 966.74
Appropriations:-
Interim Dividend paid on Equity Shares @ Rs. 31 - - - - - - - - - - - - - - 1,320.27 - - 1,320.27
Per Share
Corporate Dividend Tax on Interim Dividend paid - - - - - - - - - - - - - - 269.64 - - 269.64
on Equity Shares
Transferred to Reserve III (Reserve U/s 36(1) (viii), - - - - - - - - - - - - - - 220.00 - - 220.00
Transferred to Reserve I (Special Reserve U/s 29C of - - - - - - - - - - - - - - 211.98 - - 211.98
the NHB Act, 1987)
Transferred to General Reserve - - - - - - - - - - - - - - 150.00 - - 150.00
Transferred to Debenture Redemption Reserve - - - - - - - - - - - - - - 302.68 - - 302.68
Transferred to Special Reserve u/s 36(1)(viii) of the - - - - - - - - - - - - - - - - - -
Income Tax Act, 1961

Transferred to Reserve I (Special Reserve U/s 45IC - - - - - - - - - - - - - - 3.96 - - 3.96
of the Reserve Bank of India
Total Appropriations - - - - - - - - - - - - - - 2,478.53 - - 2,478.53
At 31 March 2020 13.92 6.36 7,261.01 188.50 1,105.99 173.92 1,780.04 698.98 2,178.00 - 1,221.18 1.28 6.13 0.02 1,317.72 (276.08) (223.15) 15,453.82
The accompanying Notes are integral part of the financial statements

DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai

NOTES
FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF INDIABULLS HOUSING FINANCE LIMITED GROUP FOR THE YEAR ENDED MARCH 31, 2020
1 Corporate information 1987, the Housing Finance Companies (NHB) Directions,
2010 and other guidelines / instructions / circulars issued
Indiabulls Housing Finance Limited is a public limited
by the National Housing Bank from time to time.
company domiciled in India with its registered office at
M-62 & 63, 1st Floor, Connaught Place, New Delhi-110001. 2 (i) Basis of preparation
The Company together with its subsidiaries (collectively,
The consolidated financial statements of the Group
‘the Group’) is primarily engaged in the business to provide
have been prepared in accordance with Indian
finance and to undertake all lending and finance to any
Accounting Standards (Ind AS) notified under the
person or persons, co-operative society, association of
Companies (Indian Accounting Standards) Rules,
persons, body of individuals, companies, institutions, firms,
2015 (as amended from time to time).
builders, developers, contractors, tenants and others either
at interest or without and/or with or without any security The consolidated financial statements have been
for construction, erection, building, repair, remodeling, prepared on a historical cost basis, except for fair
development, improvement, purchase of houses, value through other comprehensive income (FVOCI)
apartments, flats, bungalows, rooms, huts, townships and/ instruments, derivative financial instruments, other
or other buildings and real estate of all descriptions or financial assets held for trading and financial assets
convenience there on and to equip the same or part thereof and liabilities designated at fair value through profit
with all or any amenities or conveniences, drainage facility, or loss (FVTPL), all of which have been measured at
electric, telephonic, television, and other installations, fair value. Further the carrying values of recognised
either in total or part thereof and /or to purchase any free assets and liabilities that are hedged items in fair
hold or lease hold lands, estate or interest in any property value hedges, and otherwise carried at amortised
and such other activities as may be permitted under the cost, are adjusted to record changes in fair value
Main Objects of the Memorandum of Association of the attributable to the risks that are being hedged. The
Company. consolidated financial statements are presented in
Indian Rupees (INR) and all values are rounded to the
The Board of Directors of Indiabulls Housing Finance
nearest Crores, except when otherwise indicated.
Limited (100% subsidiary of “IBFSL”) and Indiabulls Financial
Services Limited (“IBFSL”, “Erstwhile Holding Company”) (ii) Presentation of financial statements
at their meeting held on April 27, 2012 had approved the
Scheme of Arrangement involving the reverse merger The Group presents its balance sheet in order of
of IBFSL with the Company in terms of the provisions liquidity. Financial assets and financial liabilities are
of Sections 391 to 394 of the Companies Act, 1956 (the generally reported gross in the balance sheet. They
“Scheme of Arrangement”). The Appointed Date of the are only offset and reported net when, in addition
proposed merger fixed under the Scheme of Arrangement to having an unconditional legally enforceable
was April 1, 2012. The Hon’ble High Court of Delhi, vide its right to offset the recognised amounts without
Order dated December 12, 2012, received by the Company being contingent on a future event, the parties also
on February 8, 2013, approved the Scheme of Arrangement. intend to settle on a net basis in all of the following
In terms of the Court approved Scheme of Arrangement, circumstances:
with the filing of the copy of the Order, on March 8, 2013, A. The normal course of business
with the office of ROC, NCT of Delhi & Haryana (the Effective
Date), IBFSL, as a going concern, stands amalgamated with B. The event of default
IBHFL with effect from the Appointed Date, being April 1, C. The event of insolvency or bankruptcy of the
2012. Group and/or its counterparties.
Indiabulls Financial Services Limited (“IBFSL”) was 3 Basis of consolidation
incorporated on January 10, 2000 as a Private Limited
Company. On March 30, 2001, the Company was registered The consolidated financial statements comprise the
under Section 45-IA of the Reserve Bank of India (RBI) Act, financial statements of the Company and its subsidiaries as
1934 to carry on the business of a Non-Banking Financial at 31 March 2020 including controlled structured entities.
Company. The Company was converted into a public limited The Group consolidates a subsidiary when it controls it.
Company pursuant to Section 44 of the Companies Act, Control is achieved when the Group is exposed, or has
1956 on February 03, 2004. rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through
Indiabulls Housing Finance Limited (“the Company”) its power over the investee.
(“IBHFL”) was incorporated on May 10, 2005. On December
28, 2005 the Company was registered under Section 29A of Generally, there is a presumption that a majority of voting
the National Housing Bank Act, 1987 to commence / carry rights result in control. To support this presumption and
on the business of a Housing Finance Institution without when the Group has less than a majority of the voting or
accepting public deposits. The Company is required to similar rights of an investee, the Group considers all relevant
comply with provisions of the National Housing Bank Act, facts and circumstances in assessing whether it has power
| 107
NOTES
over an investee, including: When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies
(i) The contractual arrangement with the other vote
in line with the Group’s accounting policies. All intra-group
holders of the investee
assets, liabilities, equity, income, expenses and cash flows
(ii) Rights arising from other contractual arrangements relating to transactions between members of the Group are
eliminated in full on consolidation.
(iii) The Group’s voting rights and potential voting rights
If the Group loses control over a subsidiary, it:
(iv) The size of the Group’s holding of voting rights
relative to the size and dispersion of the holdings of (i) Derecognises the assets (including goodwill) and
the other voting rights holders liabilities of the subsidiary
The Group re-assesses whether or not it controls an investee (ii) Derecognises the carrying amount of any non-
if facts and circumstances indicate that there are changes to controlling interests
one or more of the three elements of control. Consolidation (iii) Derecognises the cumulative translation differences
of a subsidiary begins when the Group obtains control over recorded in equity
the subsidiary and ceases when the Group loses control of
the subsidiary. Assets, liabilities, income and expenses of (iv) Recognises the fair value of the consideration
a subsidiary acquired or disposed of during the year are received
included in the consolidated financial statements from (v) Recognises the fair value of any investment retained
the date the Group gains control until the date the Group
ceases to control the subsidiary. (vi) Recognises any surplus or deficit in profit or loss.
Consolidated financial statements are prepared using (vii) Reclassifies the parent’s share of components
uniform accounting policies for like transactions and other previously recognised in OCI to profit or loss or
events in similar circumstances. retained earnings, as appropriate, as would be
required if the Group had directly disposed of the
The financial statements of all entities used for the purpose related assets or liabilities
of consolidation are drawn up to same reporting date as
that of the parent company, i.e., year ended on 31 March. A change in the ownership interest of a subsidiary, without
loss of control, is accounted for as an equity transaction.
Consolidation procedure:
4 Significant accounting policies
a. Combine like items of assets, liabilities, equity,
income, expenses and cash flows of the parent with 4.1 Significant accounting judgements, estimates and
those of its subsidiaries. For this purpose, income assumptions
and expenses of the subsidiary are based on the The preparation of Consolidated financial statements
amounts of the assets and liabilities recognised in the in conformity with Ind AS requires the management
consolidated financial statements at the acquisition to make judgments, estimates and assumptions
date. that affect the reported amounts of revenues,
b. Offset (eliminate) the carrying amount of the parent’s expenses, assets and liabilities and the disclosure
investment in each subsidiary and the parent’s of contingent liabilities, at the end of the reporting
portion of equity of each subsidiary. period. Although these estimates are based on the
management’s best knowledge of current events
c. Eliminate in full intragroup assets and liabilities, and actions, uncertainty about these assumptions
equity, income, expenses and cash flows relating to and estimates could result in the outcomes requiring
transactions between entities of the Group (profits a material adjustment to the carrying amounts of
or losses resulting from intragroup transactions that assets or liabilities in future periods.
are recognised in assets, such as inventory and fixed
A. Impairment loss on financial assets
assets, are eliminated in full). Intragroup losses may
indicate an impairment that requires recognition The measurement of impairment losses
in the consolidated financial statements. Ind AS across all categories of financial assets except
12 Income Taxes applies to temporary differences assets valued at FVTPL, enquires judgement,
that arise from the elimination of profits and losses in particular, the estimation of the amount
resulting from intragroup transactions. and timing of future cash flows and collateral
values when determining impairment losses
Profit or loss and each component of OCI are attributed to
and the assessment of a significant increase
the equity holders of the parent of the Group and to the
in credit risk. These estimates are driven by a
non-controlling interests, even if this results in the non-
number of factors, changes in which can result
controlling interests having a deficit balance.
in different levels of allowances.
108 |
NOTES
The Group’s expected credit loss (ECL) model and so a prospective change to the
calculations are outputs of complex models classification of those assets.
with a number of underlying assumptions
C. Defined employee benefit assets and
regarding the choice of variable inputs and
liabilities
their interdependencies. Elements of the
ECL models that are considered accounting The cost of the defined benefit gratuity plan
judgements and estimates include: and other post-employment benefits and the
present value of the gratuity obligation are
• The Group’s model, which assigns
determined using actuarial valuations. An
Probability of Defaults (PDs)
actuarial valuation involves making various
• The Group’s criteria for assessing if assumptions that may differ from actual
there has been a significant increase developments in the future. These include
in credit risk and so allowances for the determination of the discount rate, future
financial assets should be measured on salary increases and mortality rates. Due to
a Long Term ECL (LTECL) basis the complexities involved in the valuation
and its long-term nature, a defined benefit
• The segmentation of financial assets
obligation is highly sensitive to changes in
when their ECL is assessed on a
these assumptions. All assumptions are
collective basis
reviewed at each reporting date.
• Development of ECL models, including
D. Share Based Payments
the various formulas and the choice of
inputs Estimating fair value for share-based payment
transactions requires determination of the
• Determination of associations between
most appropriate valuation model, which
macroeconomic scenarios and,
is dependent on the terms and conditions
economic inputs, and the effect on PDs,
of the grant. This estimate also requires
Exposure at Default (EADs) and Loss
determination of the most appropriate inputs
Given Default (LGDs)
to the valuation model including the expected
• Selection of forward-looking life of the share option, volatility and dividend
macroeconomic scenarios and their yield and making assumptions about them.
probability weightings, to derive the
E. Fair value measurement
economic inputs into the ECL models.
When the fair values of financial assets and
B. Business Model Assumption
financial liabilities recorded in the balance
Classification and measurement of financial sheet cannot be measured based on quoted
assets depends on the results of the SPPI prices in active markets, their fair value
and the business model test. The Group is measured using valuation techniques
determines the business model at a level including the DCF model. The inputs to these
that reflects how groups of financial assets models are taken from observable markets
are managed together to achieve a particular where possible, but where this is not feasible, a
business objective. This assessment includes degree of judgement is required in establishing
judgement reflecting all relevant evidence fair values. Judgements include considerations
including how the performance of the assets of inputs such as liquidity risk, credit risk and
is evaluated and their performance measured, volatility. Changes in assumptions about these
the risks that affect the performance of the factors could affect the reported fair value of
assets and how these are managed and how financial instruments.
the managers of the assets are compensated.
F. Effective interest rate method
The Group monitors financial assets measured
at amortised cost that are de-recognised prior The Group’s EIR methodology, recognises
to their maturity to understand the reason for interest income using a rate of return that
their disposal and whether the reasons are represents the best estimate of a constant
consistent with the objective of the business rate of return over the expected behavioural
for which the asset was held. Monitoring is life of loans and recognises the effect of
part of the Group’s continuous assessment potentially different interest rates charged
of whether the business model for which the at various stages and other characteristics
remaining financial assets are held continues of the product life cycle. This estimation, by
to be appropriate and if it is not appropriate nature, requires an element of judgement
whether there has been a change in business regarding the expected behaviour and life-
| 109
NOTES
cycle of the instruments, as well expected d) Commission on Insurance Policies
changes to the Group’s base rate and other fee
Commission on insurance policies sold is
income/expense that are integral parts of the
recognised when the Group under its agency
instrument.
code sells the insurance policies and when the
4.2 Cash and cash equivalents same is accepted by the principal insurance
Company.
Cash and cash equivalent comprises cash in hand,
demand deposits and time deposits held with bank, e) Dividend income
debit balance in cash credit account.
Dividend income is recognized when the
4.3 Recognition of income and expense Group’s right to receive the payment is
established, it is probable that the economic
a) Interest income
benefits associated with the dividend will flow
The Group earns revenue primarily from giving to the entity and the amount of the dividend
loans. Revenue is recognized to the extent can be measured reliably. This is generally
that it is probable that the economic benefits when shareholders approve the dividend.
will flow to the Group and the revenue can
4.4 Foreign currency
be reliably measured. Interest revenue is
recognized using the effective interest method The Group’s financial statements are presented
(EIR). The effective interest method calculates in Indian Rupees (INR) which is also the Group’s
the amortized cost of a financial instrument functional currency.
and allocates the interest income. The
Transactions in foreign currencies are initially
effective interest rate is the rate that discounts
recorded by the Group at their respective functional
estimated future cash payments or receipts
currency spot rates at the date the transaction first
through the expected life of the financial
qualifies for recognition.
instrument or, when appropriate, a shorter
period, to the gross carrying amount of the Foreign currency denominated monetary assets and
financial asset or liability. The calculation liabilities are translated at the functional currency
takes into account all contractual terms spot rates of exchange at the reporting date and
of the financial instrument (for example, exchange gains and losses arising on settlement and
prepayment options) and includes any fees or restatement are recognized in the statement of profit
incremental costs that are directly attributable and loss.
to the instrument and are an integral part of
the EIR, but not future credit losses. Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
The Group calculates interest income by using the exchange rates at the dates of the initial
applying the EIR to the gross carrying amount transactions. Non-monetary items measured at fair
of financial assets other than credit-impaired value in a foreign currency are translated using the
assets. When a financial asset becomes credit- exchange rates at the date when the fair value is
impaired and is, therefore, regarded as ‘Stage determined. The gain or loss arising on translation of
3’, the Group calculates the interest to the non-monetary items measured at fair value is treated
extant recoverable. If the financial assets in line with the recognition of the gain or loss on
cures and is no longer credit-impaired, the the change in fair value of the item (i.e., translation
Group reverts to calculating interest income. differences on items whose fair value gain or loss is
recognized in OCI or profit or loss are also recognized
b) Interest expense
in OCI or profit or loss, respectively).
Interest expense includes issue costs that are
4.5 Leases
initially recognized as part of the carrying value
of the financial liability and amortized over The Group assesses at contract inception whether
the expected life using the effective interest a contract is, or contains, a lease. That is, if the
method. These include fees and commissions contract conveys the right to control the use of an
payable to arrangers and other expenses such identified asset for a period of time in exchange for
as external legal costs, provided these are consideration.
incremental costs that are directly related to
the issue of a financial liability. Company as a lessee:
c) Other charges and other interest The Group applies a single recognition and
measurement approach for all leases, except for
Additional interest and Overdue interest is short-term leases and leases of low-value assets.
recognised on realisation basis.
110 |
NOTES
The Group recognises lease liabilities to make lease Changes in accounting policies and disclosures
payments and right-of-use assets representing the
Ind AS 116 Leases
right to use the underlying assets.
Ind AS 116 supersedes Ind AS 17 Leases, Appendix C
Right-of-use assets
of Ind AS 17 Determining whether an Arrangement
The Group recognises right-of-use assets at the contains a Lease, Appendix A of Ind AS 17 Operating
commencement date of the lease (i.e., the date the Leases-Incentives and Appendix B of Ind AS 17
underlying asset is available for use). Right-of-use Evaluating the Substance of Transactions Involving
assets are measured at cost, less any accumulated the Legal Form of a Lease. Ind AS 116 sets out
depreciation and impairment losses, and adjusted the principles for the recognition, measurement,
for any remeasurement of lease liabilities. The presentation and disclosure of leases and requires
cost of right-of-use assets includes the amount lessees to recognise most leases on the balance
of lease liabilities recognised, initial direct costs sheet.
incurred, and lease payments made at or before
Lessor accounting under Ind AS 116 is substantially
the commencement date less any lease incentives
unchanged from Ind AS 17. Lessors will continue to
received. Right-of-use assets are depreciated on
classify leases as either operating or finance leases
a straight-line basis over the shorter of the lease
using similar principles as in Ind AS 17. Therefore, Ind
term and the estimated useful lives of the assets, as
AS 116 did not have an impact for leases where the
follows:
Group is the lessor.
• Office Premises – 1-12 Years
The Group adopted Ind AS 116 using the modified
The right-of-use assets are also subject to retrospective method with the initial application date
impairment. Refer to the accounting policies in as April 01, 2019. Under this method, the standard
Note 4.8 Impairment of non-financial assets. is applied retrospectively with the cumulative effect
of initially applying the standard recognised at the
Lease Liability
date of initial application. The Group elected to use
At the commencement date of the lease, the Group the transition practical expedient to not reassess
recognises lease liabilities measured at the present whether a contract is or contains a lease at 1 April
value of lease payments to be made over the lease 2019. Instead, the Group applied the standard only
term. The lease payments include fixed payments to contracts that were previously identified as leases
less any lease incentives receivable. The lease applying Ind AS 17 and Appendix C to Ind AS 17 at the
payments also include payments of penalties for date of initial application.
terminating the lease, if the lease term reflects the
The standard provides specific transition
Group exercising the option to terminate. Variable
requirements and practical expedients, which have
lease payments that do not depend on an index
been applied by the Group.
or a rate are recognised as expenses in the period
in which the event or condition that triggers the • Leases previously accounted for as operating
payment occurs. leases
In calculating the present value of lease payments, The Group recognised right-of-use assets and lease
the Group uses its incremental borrowing rate at liabilities for those leases previously classified as
the lease commencement date because the interest operating leases, except for short-term leases. The
rate implicit in the lease is not readily determinable. right-of-use assets were recognised based on the
After the commencement date, the amount of lease amount equal to the lease liabilities, adjusted for
liabilities is increased to reflect the accretion of any related prepaid and accrued lease payments
interest and reduced for the lease payments made. previously recognised. Lease liabilities were
In addition, the carrying amount of lease liabilities recognised based on the present value of the
is remeasured if there is a modification, a change in remaining lease payments, discounted using the
the lease term, a change in the lease payments or a incremental borrowing rate at the date of initial
change in the assessment of an option to purchase application.
the underlying asset.
The Group also applied the available practical
Short-term leases and leases of low-value assets expedients wherein it:
The Group applies the short-term lease recognition • Used a single discount rate to a portfolio of
exemption to its short-term leases (i.e., those leases leases with reasonably similar characteristics
that have a lease term of 12 months or less from the
• Applied the short-term leases exemptions to
commencement date and do not contain a purchase
leases with lease term that ends within 12
option).
months of the date of initial application
| 111
NOTES
• Excluded the initial direct costs from the expenditure related to PPE is capitalized only when it
measurement of the right-of-use asset at the is probable that future economic benefits associated
date of initial application. with these will flow to the Group and the cost of
item can be measured reliably. Other repairs and
• Used hindsight in determining the lease term
maintenance costs are expensed off as and when
where the contract contained options to
incurred.
extend or terminate the lease.
An item of property, plant and equipment and any
Significant accounting, judgements, estimates and significant part initially recognised is derecognised
assumptions upon disposal or when no future economic benefits
Determining the lease term of contracts with are expected from its use or disposal. Any gain or loss
renewal and termination options – Group as lessee arising on de-recognition of the asset (calculated as
the difference between the net disposal proceeds
The Group determines the lease term as the non- and the carrying amount of the asset) is included in
cancellable term of the lease, together with any the statement of profit and loss when the asset is
periods covered by an option to extend the lease if it derecognised.
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is Intangible assets
reasonably certain not to be exercised. Intangible assets acquired separately are measured
Leases - Estimating the incremental borrowing rate on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less
The Group cannot readily determine the interest rate any accumulated amortisation and accumulated
implicit in the lease, therefore, it uses its incremental impairment losses.
borrowing rate (IBR) to measure lease liabilities.
The IBR is the rate of interest that the Group would 4.7 Depreciation and amortization
have to pay to borrow over a similar term, and with Depreciation
a similar security, the funds necessary to obtain an
Depreciation on tangible fixed assets is provided on
asset of a similar value to the right-of-use asset in
straight-line method as per the useful life prescribed
a similar economic environment. The IBR therefore
in Schedule II to the Companies Act, 2013, except for
reflects what the Group ‘would have to pay’, which
Vehicles.
requires estimation when no observable rates are
available or when they need to be adjusted to reflect Vehicles are amortised on a straight line basis over
the terms and conditions of the lease. a period of five years from the date when the assets
are available for use. The life has been assessed
Accounting Policy for the Comparative Period i.e. 31
based on past usage experience and considering the
March 2019
change in technology.
Operating Leases
Depreciation on additions to fixed assets is provided
Lease arrangements where the risks and rewards on a pro-rata basis from the date the asset is put to
incidental to ownership of an asset substantially vest use. Leasehold improvements are amortised over
with the lessor are recognized as operating leases. the period of Lease. Depreciation on sale / deduction
The Group has ascertained that the payments to the from fixed assets is provided for up to the date of sale
lessor are structured to increase in line with expected / deduction, as the case may be.
general inflation to compensate for the lessor’s
The residual values, useful lives and methods of
expected inflationary cost increases and therefore,
depreciation of property, plant and equipment are
the lease payments are recognized as per terms of
reviewed at each financial year end and adjusted
the lease agreement in the Statement of Profit and
prospectively, if appropriate.
Loss.
Amortization
4.6 Property, plant and equipment (PPE) and Intangible
assets Intangible assets consisting of Software are amortised
on a straight line basis over a period of four years
PPE
from the date when the assets are available for use.
PPE are stated at cost (including incidental
The amortisation period and the amortisation
expenses directly attributable to bringing the asset
method for these softwares with a finite useful life
to its working condition for its intended use) less
are reviewed at least at each financial year-end.
accumulated depreciation and impairment losses,
if any. Cost comprises the purchase price and 4.8 Impairment of non-financial assets
any attributable cost of bringing the asset to its
The carrying amount of assets is reviewed at each
working condition for its intended use. Subsequent
balance sheet date if there is any indication of
112 |
NOTES
impairment based on internal/external factors. An The Group has unfunded defined benefit plans
impairment loss is recognised wherever the carrying Gratuity plan and Compensated absences plan
amount of an asset exceeds its recoverable amount. for all eligible employees, the liability for which
The recoverable amount is the greater of the assets, is determined on the basis of actuarial valuation
net selling price and value in use. In assessing value in at each year end. Separate actuarial valuation is
use, the estimated future cash flows are discounted carried out for each plan using the projected unit
to their present value using a pre-tax discount rate credit method. Superannuation (Pension & Medical
that reflects current market assessments of the coverage) payable to a Director on retirement is also
time value of money and risks specific to the asset. actuarially valued at the end of the year using the
In determining net selling price, recent market Projected Unit Credit Method.
transactions are taken into account, if available. If no
Remeasurements, comprising of actuarial gains
such transactions can be identified, an appropriate
and losses, the effect of the asset ceiling, excluding
valuation model is used.
amounts included in net interest on the net defined
After impairment, depreciation is provided on benefit liability and the return on plan assets
the revised carrying amount of the asset over its (excluding amounts included in net interest on the net
remaining useful life. defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit
4.9 Provisions, Contingent Liability and Contingent or credit to retained earnings through other
Assets comprehensive income in the period in which they
A provision is recognised when the Group has a occur. Remeasurements are not reclassified to profit
present obligation as a result of past events and or loss in subsequent periods.
it is probable that an outflow of resources will 4.11 Taxes
be required to settle the obligation in respect of
which a reliable estimate can be made. Provisions Tax expense comprises current and deferred tax.
(excluding retirement benefits) are not discounted Current income tax
to their present value and are determined based on
the best estimate required to settle the obligation Current income tax assets and liabilities are measured
at the balance sheet date. Contingent liability is at the amount expected to be recovered from or paid
disclosed for (1) Possible obligations which will be to the taxation authorities in accordance with Income
confirmed only by future events not wholly within tax Act, 1961, Income Computation and Disclosure
the control of the Group or (2) Present obligations Standards and other applicable tax laws. The tax
arising from past events where it is not probable that rates and tax laws used to compute the amount are
an outflow of resources will be required to settle the those that are enacted at the reporting date.
obligation or a reliable estimate of the amount of the Current income tax relating to items recognised
obligation cannot be made. Contingent Assets are outside profit or loss is recognised outside profit
not recognised in the financial statements. or loss (either in other comprehensive income
4.10 Retirement and other employee benefits or in equity). Current tax items are recognised in
correlation to the underlying transaction either in
Retirement benefit in the form of provident fund OCI or directly in equity.
and Employee State Insurance Scheme is a defined
contribution scheme. The Group has no obligation, Minimum Alternate Tax (MAT) paid in accordance with
other than the contribution payable to the provident the tax laws, which during the specified period gives
fund and Employee State Insurance scheme. The future economic benefits in the form of adjustment
Group recognizes contribution payable to the to future income tax liability, is considered as an
provident fund and Employee State Insurance asset if there is convincing evidence that the Group
scheme as an expense, when an employee renders will pay normal income tax. Accordingly, MAT is
the related service. If the contribution payable to recognised as an asset in the Balance Sheet when
the scheme for service received before the balance it is highly probable that future economic benefit
sheet date exceeds the contribution already paid, associated with it will flow to the Group.
the deficit payable to the scheme is recognized as Deferred tax
a liability after deducting the contribution already
paid. If the contribution already paid exceeds the Deferred tax is provided using the liability method
contribution due for services received before the on temporary differences between the tax bases of
balance sheet date, then excess is recognized as an assets and liabilities and their carrying amounts for
asset to the extent that the pre-payment will lead to, financial reporting purposes at the reporting date.
for example, a reduction in future payment or a cash
Deferred tax assets are recognised for all deductible
refund.
temporary differences, the carry forward of unused
| 113
NOTES
tax credits and any unused tax losses. Deferred tax a straight line basis over the vesting period, based
assets are recognised to the extent that it is probable on the Group’s estimate of equity instruments that
that taxable profit will be available against which will eventually vest, with a corresponding increase
the deductible temporary differences, and the carry in equity. At the end of each reporting period, the
forward of unused tax credits and unused tax losses Group revises its estimate of the number of equity
can be utilised. instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised
The carrying amount of deferred tax assets is
in Statement of Profit and Loss such that the
reviewed at each reporting date and reduced to the
cumulative expenses reflects the revised estimate,
extent that it is no longer probable that sufficient
with a corresponding adjustment to the Stock
taxable profit will be available to allow all or part of
Compensation Adjustment Reserve.
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting The dilutive effect of outstanding options is reflected
date and are recognised to the extent that it has as additional share dilution in the computation of
become probable that future taxable profits will diluted earnings per share.
allow the deferred tax asset to be recovered. 4.14 Financial instruments
Deferred tax assets and liabilities are measured at the A financial instrument is any contract that gives
tax rates that are expected to apply in the year when rise to a financial asset of one entity and a financial
the asset is realised or the liability is settled, based liability or equity instrument of another entity.
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. 4.14.1 Financial Assets
Deferred tax relating to items recognised outside 4.14.1.1 Initial recognition and measurement
profit or loss is recognised outside profit or loss Financial assets, with the exception of loans and
(either in other comprehensive income or in equity). advances to customers, are initially recognised
Deferred tax items are recognised in correlation to on the trade date, i.e., the date that the Group
the underlying transaction either in OCI or directly in becomes a party to the contractual provisions of
equity. the instrument. Loans and advances to customers
are recognised when funds are disbursed to the
Deferred tax assets and deferred tax liabilities are
customers. The classification of financial instruments
offset if a legally enforceable right exists to set off
at initial recognition depends on their purpose and
current tax assets against current tax liabilities and
characteristics and the management’s intention
the deferred taxes relate to the same taxable entity
when acquiring them. All financial assets are
and the same taxation authority.
recognised initially at fair value plus, in the case of
4.12 Earning per share financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable
Basic earnings per share are calculated by dividing the
to the acquisition of the financial asset.
net profit or loss for the year attributable to equity
shareholders by the weighted average number of 4.14.1.2 Classification and Subsequent measurement
equity shares outstanding during the period. Partly For purposes of subsequent measurement, financial
paid equity shares are treated as a fraction of an assets are classified in four categories:
equity share to the extent that they are entitled to
participate in dividends relative to a fully paid equity • Debt instruments at amortised cost
share during the reporting year. • Debt instruments at fair value through other
For the purpose of calculating diluted earnings per comprehensive income (FVTOCI)
share, the net profit or loss for the year attributable • Debt instruments and equity instruments at
to equity shareholders and the weighted average fair value through profit or loss (FVTPL)
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity • Equity instruments measured at fair value
shares. through other comprehensive income
(FVTOCI)
4.13 Share based payments
4.14.1.3 Debt instruments at amortised costs
Equity-settled share based payments to employees
A ‘debt instrument’ is measured at the amortised
and others providing similar services are measured
cost if both the following conditions are met:
at the fair value of the equity instruments at the
grant date. • The asset is held within a business model
whose objective is to hold assets for collecting
The fair value determined at the grant date of the
contractual cash flows, and
equity-settled share based payments is expensed on
114 |
NOTES
Contractual terms of the asset give rise on specified Debt instruments included within the FVTOCI
dates to cash flows that are solely payments of category are measured initially as well as at each
principal and interest (SPPI) on the principal amount reporting date at fair value. Fair value movements are
outstanding. recognized in the other comprehensive income (OCI).
However, the Group recognizes interest income,
Business model: The business model reflects how
impairment losses & reversals and foreign exchange
the Group manages the assets in order to generate
gain or loss in the Statement of Profit & Loss. On
cash flows. That is, where the Group’s objective is
derecognition of the asset, cumulative gain or loss
solely to collect the contractual cash flows from the
previously recognised in OCI is reclassified from
assets, the same is measured at amortized cost or
the equity to Statement of profit and loss. Interest
where the Group’s objective is to collect both the
earned whilst holding FVTOCI debt instrument is
contractual cash flows and cash flows arising from
reported as interest income using the EIR method.
the sale of assets, the same is measured at fair value
through other comprehensive income (FVTOCI). If 4.14.1.5 Debt instruments at FVTPL
neither of these is applicable (e.g. financial assets are
held for trading purposes), then the financial assets FVTPL is a residual category for debt instruments.
are classified as part of ‘other’ business model and Any debt instrument, which does not meet the
measured at FVPL. criteria for categorization as at amortized cost or as
FVTOCI, is classified as at FVTPL.
SPPI: Where the business model is to hold assets
to collect and earn contractual cash flows (i.e. In addition, the Group may elect to designate a debt
measured at amortized cost), the Group assesses instrument, which otherwise meets amortized cost or
whether the financial instruments’ cash flows FVTOCI criteria, as at FVTPL. However, such election
represent solely payments of principal and interest is allowed only if doing so reduces or eliminates a
(the ‘SPPI test’). In making this assessment, the measurement or recognition inconsistency (referred
Group considers whether the contractual cash flows to as ‘accounting mismatch’). Debt instruments
are consistent with a basic lending arrangement i.e. included within the FVTPL category are measured
interest includes only consideration for the time at fair value with all changes recognized in the
value of money, credit risk, other basic lending risks Statement of profit and loss.
and a profit margin that is consistent with a basic 4.14.1.6 Equity Investments
lending arrangement. Where the contractual terms
introduce exposure to risk or volatility that are All equity investments in scope of Ind AS 109
inconsistent with a basic lending arrangement, the are measured at fair value. Equity instruments
related financial asset is classified and measured at which are held for trading classified as at FVTPL.
fair value through profit or loss. The amortized cost, For all other equity instruments, the Group may
as mentioned above, is computed using the effective make an irrevocable election to present in other
interest rate method. comprehensive income subsequent changes in the
fair value. The Group makes such election on an
After initial measurement, such financial assets are instrument-by- instrument basis. The classification is
subsequently measured at amortised cost using the made on initial recognition and is irrevocable.
effective interest rate (EIR) method less impairment.
Amortised cost is calculated by taking into account If the Group decides to classify an equity instrument
any discount or premium on acquisition and fees as at FVTOCI, then all fair value changes on the
or costs that are an integral part of the EIR. The EIR instrument, excluding dividends, are recognized
amortisation is included in interest income in the in the Other Comprehensive Income. There is no
statement of profit or loss. The losses arising from recycling of the amounts from Other Comprehensive
impairment are recognised in the statement of profit Income to Statement of Profit &Loss, even on sale
and loss. of investment. However, the Group may transfer the
cumulative gain or loss within equity.
4.14.1.4 Debt instruments at FVOCI
Equity instruments included within the FVTPL
A ‘debt instrument’ is classified as at the FVTOCI if category are measured at fair value with all changes
both of the following criteria are met: recognized in the Statement of profit and loss.
The objective of the business model is achieved both 4.14.2 Financial Liabilities
by collecting contractual cash flows and fair value
changes relating to market movements selling the 4.14.2.1 Initial recognition and measurement
financial assets, and The asset’s contractual cash Financial liabilities are classified and measured
flows represent SPPI. at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for
trading or it is designated as on initial recognition.
| 115
NOTES
All financial liabilities are recognised initially at fair • It retains the rights to the cash flows, but has
value and, in the case of loans and borrowings and assumed an obligation to pay the received cash
payables, net of directly attributable transaction flows in full without material delay to a third
costs. party under a ‘pass-through’ arrangement
The Group’s financial liabilities include trade and Pass-through arrangements are transactions
other payables, borrowings including bank overdrafts whereby the Group retains the contractual rights
and derivative financial instruments. to receive the cash flows of a financial asset (the
4.14.2.2 Borrowings ‘original asset’), but assumes a contractual obligation
to pay those cash flows to one or more entities (the
After initial recognition, interest-bearing loans and ‘eventual recipients’), when all of the following three
borrowings are subsequently measured at amortised conditions are met:
cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are • The Group has no obligation to pay amounts to
derecognised as well as through the EIR amortisation the eventual recipients unless it has collected
process. equivalent amounts from the original asset,
excluding short-term advances with the
Amortised cost is calculated by taking into account right to full recovery of the amount lent plus
any discount or premium on acquisition and fees accrued interest at market rates.
or costs that are an integral part of the EIR. The
EIR amortisation is included as finance costs in the • The Group cannot sell or pledge the original
statement of profit and loss. This category generally asset other than as security to the eventual
applies to borrowings. recipients.
4.14.3 Derivative financial instruments • The Group has to remit any cash flows it
collects on behalf of the eventual recipients
The Group holds derivatives to mitigate the risk without material delay.
of changes in exchange rates on foreign currency
exposures as well as interest fluctuations. The In addition, the Group is not entitled to reinvest such
counterparty for these contracts is generally a bank. cash flows, except for investments in cash or cash
Derivatives that are not designated a hedge are equivalents including interest earned, during the
categorized as financial assets or financial liabilities, period between the collection date and the date of
at fair value through profit or loss. Such derivatives required remittance to the eventual recipients.
are recognized initially at fair value and attributable
transaction costs are recognized in net profit in A transfer only qualifies for derecognition if either:
the Statement of Profit and Loss when incurred. • The Group has transferred substantially all the
Subsequent to initial recognition, these derivatives risks and rewards of the asset
are measured at fair value through profit or loss
and the resulting gains or losses are included in Or
Statement of Profit and Loss. • The Group has neither transferred nor
4.14.4 Reclassification of financial assets and liabilities retained substantially all the risks and rewards
of the asset, but has transferred control of the
The Group doesn’t reclassify its financial assets asset.
subsequent to their initial recognition, apart from
the exceptional circumstances in which the Group The Group considers control to be transferred if
acquires, disposes of, or terminates a business line. and only if, the transferee has the practical ability
Financial liabilities are never reclassified. to sell the asset in its entirety to an unrelated third
party and is able to exercise that ability unilaterally
4.14.5 De recognition of financial assets and liabilities
and without imposing additional restrictions on the
4.14.5.1 Financial Assets transfer.
A financial asset (or, where applicable, a part of a When the Group has neither transferred nor
financial asset or part of a group of similar financial retained substantially all the risks and rewards and
assets) is de-recognised when the rights to receive has retained control of the asset, the asset continues
cash flows from the financial asset have expired. to be recognised only to the extent of the Group’s
The Group also de-recognised the financial asset if continuing involvement, in which case, the Group
it has transferred the financial asset and the transfer also recognises an associated liability. The transferred
qualifies for de recognition. asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
The Group has transferred the financial asset if, and
Group has retained.
only if, either:
Continuing involvement that takes the form of a
• It has transferred its contractual rights to
guarantee over the transferred asset is measured
receive cash flows from the financial asset
at the lower of the original carrying amount of the
Or asset and the maximum amount of consideration the
Group could be required to pay.
116 |
NOTES
If continuing involvement takes the form of a written Stage 2 or Stage 3.
or purchased option (or both) on the transferred
asset, the continuing involvement is measured at Stage 2: When a loan has shown a significant increase
the value the Group would be required to pay upon in credit risk since origination, the Group records an
repurchase. In the case of a written put option on allowance for the LTECLs. Stage 2 loans also include
an asset that is measured at fair value, the extent facilities, where the credit risk has improved and the
of the entity’s continuing involvement is limited to loan has been reclassified from Stage 3.
the lower of the fair value of the transferred asset Stage 3: Loans considered credit-impaired. The
and the option exercise price. The profit or loss on Group records an allowance for the LTECLs.
derecognition is recognised in the Statement of
profit and loss 4.15.2 The calculation of ECLs
4.14.5.2 Financial Liabilities The Group calculates ECLs based on a probability-

weighted scenarios and historical data to measure
A financial liability is derecognised when the the expected cash shortfalls, discounted at an
obligation under the liability is discharged, cancelled approximation to the EIR. A cash shortfall is the
or expires. Where an existing financial liability difference between the cash flows that are due to an
is replaced by another from the same lender on entity in accordance with the contract and the cash
substantially different terms or the terms of an flows that the entity expects to receive.
existing liability are substantially modified, such an
exchange or modification is treated as a derecognition The mechanics of the ECL calculations are outlined
of the original liability and the recognition of a new below and the key elements are, as follows:
liability. The difference between the carrying value of
• PD - The Probability of Default is an estimate
the original financial liability and the consideration
paid is recognised in profit or loss. of the likelihood of default over a given time
horizon. A default may only happen at a
4.15 Impairment of financial assets certain time over the assessed period, if the
4.15.1 Overview of the ECL principles facility has not been previously derecognised
and is still in the portfolio.
The Group is recording the allowance for expected
credit losses for all loans and other debt financial • EAD - The Exposure at Default is an exposure
assets not held at FVTPL, together with loan at a default date.
commitments and financial guarantee contracts, (in
this section all referred to as ‘financial instruments’). • LGD - The Loss Given Default is an estimate
Equity instruments are not subject to impairment of the loss arising in the case where a default
under IND AS 109. occurs at a given time. It is based on the
difference between the contractual cash flows
The ECL allowance is based on the credit losses due and those that the lender would expect
expected to arise over the life of the asset (the to receive, including from the realisation of
lifetime expected credit loss or LTECL), unless there
any collateral. It is usually expressed as a
has been no significant increase in credit risk since
origination, in which case, the allowance is based percentage of the EAD.
on the 12 months’ expected credit loss (12mECL) as The maximum period for which the credit losses
outlined in Note 4.15.2. The 12mECL is the portion are determined is the expected life of a financial
of LTECLs that represent the ECLs that result from
instrument.
default events on a financial instrument that are
possible within the 12 months after the reporting The mechanics of the ECL method are summarised
date. below:
Both LTECLs and 12mECLs are calculated on individual Stage 1: The 12mECL is calculated as the portion
and collective basis, depending on the nature of of LTECLs that represent the ECLs that result from
the underlying portfolio of financial instruments. default events on a financial instrument that are
The Group has established a policy to perform an possible within the 12 months after the reporting
assessment, at the end of each reporting period,
date. The Group calculates the 12mECL allowance
of whether a financial instrument’s credit risk has
increased significantly since initial recognition. based on the expectation of a default occurring in
the 12 months following the reporting date. These
Based on the above process, the Group groups its expected 12-month default probabilities are applied
loans into Stage 1, Stage 2, Stage 3, as described to an EAD and multiplied by the expected LGD.
below:
Stage 2: When a loan has shown a significant increase
Stage 1 : When loans are first recognised, the Group in credit risk since origination, the Group records an
recognises an allowance based on 12mECLs. Stage 1 allowance for the LTECLs. The mechanics are similar
loans also include facilities where the credit risk has to those explained above, but PDs and LGDs are
improved and the loan has been reclassified from
estimated over the lifetime of the instrument.
| 117
NOTES
Stage 3: For loans considered credit-impaired, the would use when pricing the asset or liability, assuming
Group recognizes the lifetime expected credit losses that market participants act in their economic best
for these loans. The method is similar to that for interest.
Stage 2 assets, with the PD set at 100%.
A fair value measurement of a non-financial asset
Loan commitments: When estimating LTECLs for takes into account a market participant’s ability to
undrawn loan commitments, the Group estimates generate economic benefits by using the asset in
the expected portion of the loan commitment that its highest and best use or by selling it to another
will be drawn down over its expected life. The ECL market participant that would use the asset in its
is then based on the present value of the expected highest and best use.
shortfalls in cash flows if the loan is drawn down.
The expected cash shortfalls are discounted at an The Group uses valuation techniques that are
approximation to the expected EIR on the loan. appropriate in the circumstances and for which
sufficient data are available to measure fair value,
For loan commitments, the ECL is recognised within maximising the use of relevant observable inputs and
Provisions. minimising the use of unobservable inputs.
4.15.3 Forward looking information All assets and liabilities for which fair value is
While estimating the expected credit losses, the measured or disclosed in the financial statements are
Group reviews macro-economic developments categorised within the fair value hierarchy, described
occurring in the economy and market it operates as follows, based on the lowest level input that is
in. On a periodic basis, the Group analyses if there significant to the fair value measurement as a whole:
is any relationship between key economic trends Level 1 — Quoted (unadjusted) market prices in
like GDP, Property Price Index, Unemployment active markets for identical assets or liabilities
rates, Benchmark rates set by the Reserve Bank of
India, inflation etc. with the estimate of PD, LGD Level 2 — Valuation techniques for which the
determined by the Group based on its internal lowest level input that is significant to the fair value
data. While the internal estimates of PD, LGD rates measurement is directly or indirectly observable
by the Group may not be always reflective of such
relationships, temporary overlays are embedded in Level 3 — Valuation techniques for which the
the methodology to reflect such macro-economic lowest level input that is significant to the fair value
trends reasonably. measurement is unobservable
4.15.4 Write-offs For assets and liabilities that are recognised in

the financial statements on a recurring basis, the
Financial assets are written off partially or in their Group determines whether transfers have occurred
entirety when the recovery of amounts due is between levels in the hierarchy by re-assessing
considered unlikely. If the amount to be written categorisation (based on the lowest level input that
off is greater than the accumulated loss allowance, is significant to the fair value measurement as a
the difference is first treated as an addition to the whole) at the end of each reporting period.
allowance that is then applied against the gross
carrying amount. Any subsequent recoveries are 4.17 Dividend
credited to Statement of Profit and Loss. The Group recognises a liability to make cash
4.16 Fair value measurement distributions to equity holders when the distribution
is authorised and the distribution is no longer at the
The Group measures financial instruments, such as, discretion of the Group. Final dividends on shares are
derivatives at fair value at each balance sheet date recorded as a liability on the date of approval by the
using valuation techniques. shareholders and interim dividends are recorded as
Fair value is the price that would be received to sell a liability on the date of declaration by the Group’s
an asset or paid to transfer a liability in an orderly Board of Directors.
transaction between market participants at the 4.18 Hedging
measurement date. The fair value measurement is
based on the presumption that the transaction to sell The Group makes use of derivative instruments
the asset or transfer the liability takes place either: to manage exposures to interest rate and foreign
currency. In order to manage particular risks, the
In the principal market for the asset or liability, or Group applies hedge accounting for transactions that
In the absence of a principal market, in the most meet specified criteria.
advantageous market for the asset or liability At the inception of a hedge relationship, the
The principal or the most advantageous market must Group formally designates and documents the
be accessible by the Group. hedge relationship to which the Group wishes to
apply hedge accounting and the risk management
The fair value of an asset or a liability is measured objective and strategy for undertaking the hedge.
using the assumptions that market participants The documentation includes the Group’s risk
118 |
NOTES
management objective and strategy for undertaking particular risk associated with a recognised asset or
hedge, the hedging/ economic relationship, the liability (such as all or some future interest payments
hedged item or transaction, the nature of the risk on variable rate debt) or a highly probable forecast
being hedged, hedge ratio and how the entity will transaction and could affect profit or loss.
assess the effectiveness of changes in the hedging
instrument’s fair value in offsetting the exposure to For designated and qualifying cash flow hedges, the
changes in the hedged item’s fair value or cash flows effective portion of the cumulative gain or loss on
attributable to the hedged risk. Such hedges are the hedging instrument is initially recognised directly
expected to be highly effective in achieving offsetting in OCI within equity (cash flow hedge reserve). The
changes in fair value or cash flows and are assessed ineffective portion of the gain or loss on the hedging
on an ongoing basis to determine that they actually instrument is recognised immediately in the profit
have been highly effective throughout the financial and loss statement.
reporting periods for which they were designated.
When the hedged cash flow affects the statement
Hedges that meet the strict criteria for hedge
accounting are accounted for, as described below: of profit and loss, the effective portion of the gain
or loss on the hedging instrument is recorded in
4.18.1 Fair value hedges the corresponding income or expense line of the
Fair value hedges hedge the exposure to changes statement of profit and loss. When the forecast
in the fair value of a recognised asset or liability or transaction subsequently results in the recognition
an unrecognised firm commitment, or an identified of a non-financial asset or a non-financial liability,
portion of such an asset, liability or firm commitment, the gains and losses previously recognised in OCI are
that is attributable to a particular risk and could reversed and included in the initial cost of the asset
affect profit or loss. or liability.
For designated and qualifying fair value hedges, the When a hedging instrument expires, is sold,
cumulative change in the fair value of a hedging terminated, exercised, or when a hedge no longer
derivative is recognised in the statement of profit and meets the criteria for hedge accounting, any
loss in net gain on fair value changes. Meanwhile, the cumulative gain or loss that has been recognised in
cumulative change in the fair value of the hedged
OCI at that time remains in OCI and is recognised
item attributable to the risk hedged is recorded as
part of the carrying value of the hedged item in the when the hedged forecast transaction is ultimately
balance sheet and is also recognised in the statement recognised in the statement of profit and loss. When
of profit and loss in net gain on fair value changes. a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in OCI
The Group classifies a fair value hedge relationship is immediately transferred to the statement of profit
when the hedged item (or group of items) is a and loss.
distinctively identifiable asset or liability hedged
by one or a few hedging instruments. The financial 4.18.3 Cost of hedging
instruments hedged for interest rate risk in a fair
value hedge relationships fixed rate debt issued and The Group also may separate forward element and
other borrowed funds. the spot element of a forward contract and designate
as the hedging instrument only the change in the
If the hedging instrument expires or is sold, terminated value of the spot element of a forward contract.
or exercised, or where the hedge no longer meets the
Similarly currency basis spread may be separated
criteria for hedge accounting, the hedge relationship
is discontinued prospectively. If the relationship and excluded from the designation of a financial
does not meet hedge effectiveness criteria, the instrument as the hedging instrument.
Group discontinues hedge accounting from the date When an entity separates the forward element
on which the qualifying criteria are no longer met.
and the spot element of a forward contract and
For hedged items recorded at amortised cost, the
accumulated fair value hedge adjustment to the designates as the hedging instrument only the change
carrying amount of the hedged item on termination in the value of the spot element of the forward
of the hedge accounting relationship is amortised contract, or when an entity separates the foreign
over the remaining term of the original hedge using currency basis spread from a financial instrument
the recalculated EIR method by recalculating the and excludes it from the designation of that financial
EIR at the date when the amortisation begins. If the instrument as the hedging instrument, such amount
hedged item is derecognised, the unamortised fair is recognised in Other Comprehensive Income and
value adjustment is recognised immediately in the accumulated as a separate component of equity
statement of profit and loss. under Cost of hedging reserve. These amounts are
4.18.2 Cash flow hedges reclassified to the statement of profit or loss account
as a reclassification adjustment in the same period
A cash flow hedge is a hedge of the exposure to or periods during which the hedged cash flows affect
variability in cash flows that is attributable to a profit or loss.
| 119
NOTES
(5) Cash and cash equivalents
As at As at
March 31, 2020 March 31, 2019
Cash-on-Hand 0.27 4.70
Balance with banks
In Current accounts# 11,570.85 10,697.76
Bank Deposits 1,993.47 3,200.36
Total 13,564.59 13,902.82
# includes Rs. 4.67 Crore (Previous Year Rs. 4.65 Crore) in designated unclaimed dividend accounts.
(6) Bank Balance other than cash and cash equivalents
As at As at
March 31, 2020 March 31, 2019
Balances with banks to the extent held as margin money or security against the 1,474.06 718.43
borrowings, guarantees, other commitments(1)
Total 1,474.06 718.43
(1) Deposits accounts with bank are held as Margin Money/ are under lien. The Group has the complete beneficial interest on the
income earned from these deposits.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
As at As at
March 31, 2020 March 31, 2019
Balances with banks:
In current accounts 11,570.85 10,697.76
Bank Deposits 1,993.47 3,200.36
Cash on hand 0.27 4.70
Total 13,564.59 13,902.82
(7) Derivative financial instruments
Part I As at March 31, 2020

Notional Fair value Notional Fair value
amounts assets amounts liabilities
Currency Derivatives:
- Forward Contracts 4,271.49 238.36 6.08 -
- Currency swaps 3,075.89 468.56 - -
- Currency options 383.24 25.81 - -
(i) 7,730.62 732.73 6.08 -
Interest rate derivatives - Interest Rate Swaps 936.55 6.45 2,285.21 187.82
(ii) 936.55 6.45 2,285.21 187.82
Total derivative financial instruments (i)+(ii) 8,667.17 739.18 2,291.29 187.82
120 |
NOTES
Part II As at March 31, 2020

Included in above are derivatives held for hedging and risk
management purposes as follows:
Fair value hedging:
Interest rate derivatives - - - -
(i) - - - -
Cash flow hedging:
- Currency swaps 3,075.89 468.56 - -
- Interest rate derivatives - - 2,285.21 186.48
(ii) 7,730.62 732.73 2,291.29 186.48
Undesignated derivatives (iii) 936.55 6.45 - 1.34
Total derivative financial instruments (i)+(ii)+(iii) 8,667.17 739.18 2,291.29 187.82

- Forward Contracts 100.00 0.87 2,267.03 34.96
-Currency swaps 1,525.27 122.63 1,650.63 13.39
(i) 1,625.27 123.50 3,917.66 48.35
Interest rate derivatives - Interest Rate Swaps 3,891.17 12.25 17,321.45 57.61
(ii) 3,891.17 12.25 17,321.45 57.61
Fair value hedging:
(i) - - - -
Cash flow hedging:
-Currency swaps 1,525.28 122.63 1,650.64 13.39
-Interest rate derivatives 204.61 3.55 2,182.89 53.72
(ii) 1,829.89 127.05 6,100.56 102.07
Undesignated derivatives (iii) 3,686.55 8.70 15,138.55 3.89
| 121
NOTES
7.1 Hedging activities and derivatives
The Group is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are interest rate risk and foreign currency risk.
7.1.1 Derivatives not designated as hedging instruments
The Group uses interest rate swaps to manage its interest rate risk arising from INR denominated borrowings . The interest rate
swaps are not designated in a hedging relationship and are entered into for periods consistent with exposure of the underlying
transactions.
7.1.2 Derivatives designated as hedging instruments
a. Cash flow hedges
The foreign currency and interest rate risk on borrowings have been actively hedged through a combination of forward
contracts, principal only swaps and interest rate swaps
The Group is exposed to interest rate risk arising from its foreign currency borrowings amounting to $ 717,630,447 (Previous
Year $ 734,297,113). Interest on the borrowing is payable at a floating rate linked to USD LIBOR. The group economically
hedged the interest rate risk arising from the debt with a ‘receive floating pay fixed’ interest rate swap (‘swap’).
The Group uses Interest Rate Swaps (IRS) Contracts (Floating to Fixed) to hedge its risks associated with interest rate
fluctuations relating interest rate risk arising from foreign currency loans / external commercial borrowings. The Group
designates such IRS contracts in a cash flow hedging relationship by applying the hedge accounting principles as per IND AS
109. These IRS contracts are stated at fair value at each reporting date. Changes in the fair value of these IRS contracts that
are designated and effective as hedges of future cash flows are recognised directly in “Cash Flow Hedge Reserve” under
Reserves and surplus and the ineffective portion is recognised immediately in the Statement of Profit and Loss. Hedge
accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies
for hedge accounting.
The Group also hedges foreign currency risk arising from its fixed rate foreign currency bond by entering into the
Forward Contracts and Principal Only Swaps. There is an economic relationship between the hedged item and the hedging
instrument as the terms of the Forward contracts/Principal Only Swaps match that of the foreign currency borrowing
(notional amount, interest payment dates, principal repayment date etc.). The Group has established a hedge ratio of
1:1 for the hedging relationships as the underlying risk of the Forward contracts/Cross currency swap are identical to the
hedged risk components.
As At March 31, 2020

Notional amount Carrying amount Line item in the Change in fair
statement of value
financial position
The impact of hedging instruments(Net) 10,021.91 546.26 Derivative (126.11)
Financial Asset/
Liability

statement of value
financial position
Financial Asset/
Liability
Change in fair Cash flow Cost of Cash flow Cost of

value hedge reserve hedging as hedge reserve hedging as
as at March at March 31, as at March at March 31,
31, 2020 2020 31, 2019 2019
The impact of hedging item (126.11) (322.73) - (196.62) -
122 |
NOTES
March, 31, 2020 Total hedging Ineffective-ness Line item in the

gain / (loss) recognised in statement of
recognised in profit or ( loss) profit or loss
OCI
Effect of Cash flow hedge (126.11) (0.82) Finance cost

OCI
Effect of Cash flow hedge 52.75 (4.53) Finance cost
b Fair value hedge
The Group uses IRS instruments to convert a proportion of its fixed rate debt to floating rates in order to hedge the interest
rate risk arising, principally, from issue of non-convertible debentures. Group designates these as fair value hedges of
interest rate risk. Changes in the fair values of derivatives designated as fair value hedges and changes in fair value of the
related hedged item are recognised directly in the Statement of Profit and Loss thus ineffective portion being recognised in
the Statement of Profit and Loss.
(8) Trade Receivables
As at As at
March 31, 2020 March 31, 2019
Unsecured considered good 28.84 35.95
28.84 35.95
(9) Loans
As at As at
March 31, 2020 March 31, 2019
Amortised Cost Amortised Cost
Term Loans (Net of Assignment)(1) to (3) 73,948.39 93,408.60
Less: Impairment loss allowance 3,736.95 1,021.41
Total (A) Net 70,211.44 92,387.19
Secured by tangible assets and intangible assets(2) & (3) 69,883.79 93,069.56
Unsecured 4,064.60 339.04
Total (B) Net 70,211.44 92,387.19
(C) (I) Loans in India
Others 73,948.39 93,408.60
Total (C )(I) Net 70,211.44 92,387.19
(C) (II)Loans outside India - -
Less: Impairment loss allowance - -
Total (C )(II) Net - -
Total C (I) and C (II) 70,211.44 92,387.19
(1) Term Loans (Net of Assignment):

Total Term Loans 93,021.06 120,525.14
Less: Loans Assigned 19,956.28 28,226.90
73,064.78 92,298.24
Add: Interest Accrued on Loans 883.61 1,110.36
Term Loans (Net of Assignment) 73,948.39 93,408.60
| 123
NOTES
(2) Secured Loans and Other Credit Facilities given to customers are secured / partly secured by :
(a) Equitable mortgage of property and / or
(b) Pledge of shares / debentures, units, other securities, assignment of life insurance policies and / or
(c) Hypothecation of assets and / or
(d) Company guarantees and / or
(e) Personal guarantees and / or
(f) Negative lien and / or Undertaking to create a security.
(3) Impairment allowance for loans and advances to customers
IBHFL’s Analytics Department has designed and operates its Internal Rating Model. The model is tested and calibrated
periodically. The model grades loans on a four-point grading scale, and incorporates both quantitative as well as qualitative
information on the loans and the borrowers. The model uses historical empirical data to arrive at factors that are indicative
of future credit risk and segments the portfolio on the basis of combinations of these parameters into smaller homogenous
portfolios from the perspective of credit behaviour. Some of the factors that the internal risk based model may consider
are:
a) Loan to value
b) Type of collatera
c) Cash-flow and income assessment of the borrower
d) Interest and debt service cover
e) Repayment track record of the borrower
f) Vintage i.e. months on books and number of paid EMIs
g) Project progress in case of project finance
In addition to information specific to the borrower and the performance of the loan, the model may also utilise
supplemental external information that could affect the borrower’s behaviour. The model is also calibrated to incorporate
external inputs such as GDP growth rate, unemployment rate and factors specific to the sector/industry of the borrower.
The Internal Rating Model is dynamic and is calibrated periodically; the choice of parameters and division into smaller
homogenous portfolios is thus also dynamic.
The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal credit
rating system and year-end stage classification*.
Risk Categorization As at March 31, 2020

Stage 1 Stage 2 Stage 3 Total
Very Good 46,888.85 - - 46,888.85
Good 1,862.72 18,924.75 - 20,787.47
Average - 3,675.97 - 3,675.97
Non-performing - - 1,712.49 1,712.49
Grand Total 48,751.57 22,600.72 1,712.49 73,064.78
124 |
NOTES

Very Good 82,828.57 - - 82,828.57
Good 3,286.61 3,204.28 - 6,490.89
Average - 1,918.08 - 1,918.08
Non-performing - - 1,060.70 1,060.70
Grand Total 86,115.18 5,122.36 1,060.70 92,298.24
*The above table does not include the amount of interest accrued but not due in all the years
An analysis of changes in the ECL allowances in relation to Loans & advances is, as follows:
Particulars As at March 31, 2020
ECL allowance opening balance 178.93 614.25 228.24 1,021.42
ECL on assets added/ change in ECL 807.41 1,931.41 71.67 2,810.49
estimates
Assets derecognised or repaid (including (50.60) (33.01) (11.34) (94.95)
write offs/ Write back)
Transfers from Stage 1 (389.28) 172.01 217.27 -
Transfers from Stage 2 1.54 (53.40) 51.86 -
Transfers from Stage 3 0.03 0.01 (0.03) 0.01
ECL allowance closing balance 548.02 2,631.27 557.67 3,736.96
The increase in ECL of the portfolio is explained by an increase in the amount of loans classified as Stage II and Stage III after
factoring stress scenario of general economic conditions.
The Group has adopted a conservative approach to expected credit loss [ECL] staging and accounts have been categorized
as Stage 2 based on analysis of stress in particular industry segments even if the loan accounts are regular in debt servicing.
IndAS ECL guidelines also do not permit creation of unattached ad-hoc provisions outside of the analytically computed ECL
provisions. Thus, this identification of stress in particular industry segments and categorizing a significantly larger number
of loans as Stage 2 has formed the basis of the provisioning the Group has created – as on March 31, 2020, the Group had
total provisions against loan book of Rs. 3,741 Crore which is 5.1% (Previous Year Rs. 1,022 Crore which is 1.1%) of the loan
book.

ECL on assets added/ change in ECL 73.70 21.14 36.53 131.37
estimates
Assets derecognised or repaid( including (701.52) (106.93) (39.54) (847.99)
Transfers from Stage 1 (6.08) 5.68 0.40 -
Transfers from Stage 2 71.36 (72.94) 1.58 0.00
Transfers from Stage 3 6.21 1.20 (7.41) -
ECL allowance closing balance 178.93 614.25 228.24 1,021.42
| 125
NOTES
During the financial year 2018-19 the significant changes in the ECL allowance were on account of assets derecognised
(including from loans sell down), written off/written back amounting to Rs 24,098.65 Crore.
4. Impairment assessment
The Group’s impairment assessment and measurement approach is set out in the notes below. It should be read in
conjunction with the Summary of significant accounting policies.
4 (i) Probability of default
The Group considers a loan as defaulted and classified it as Stage 3 (credit-impaired) for ECL calculations typically when the
borrowers become 90 days past due on contract payments.
Classification of loans into Stage 2 is done on a conservative basis and typically accounts where contractual repayments
are more than 30 days past due are classified in Stage 2. Accounts usually go over 30 days past due owing to temporary
mismatch in timing of borrower’s or his/her business’ underlying cashflows, and are usually quickly resolved. The Group
may also classify a loan in Stage 2 if there is significant deterioration in the loans collateral, deterioration in the financial
condition of the borrower or an assessment that adverse market conditions may have a disproportionately detrimental
effect on the loan repayment. Thus as a part of the qualitative assessment of whether an instrument is in default, the Group
also considers a variety of instances that may indicate delay in or non-repayment of the loan. When such event occurs, the
Group carefully considers whether the event should result in treating the borrower as defaulted and therefore assessed as
Stage 3 for ECL calculations or whether Stage 2 is appropriate.
It is the Group’s policy to consider a financial instrument as ‘cured’ and therefore re-classified out of Stage 3 when none of
the default criteria are present. The decision whether to classify an asset as Stage 2 or Stage 1 once cured depends on the
updated credit grade once the account is cured, and whether this indicates there has been a significant reduction in credit
risk.
4 (ii) Internal rating model and PD Estimation process
The Group’s internal rating and PD estimation process:
IBHFL’s Analytics Department has designed and operates its Internal Rating Model that factors in both quantitative as well
as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive at factors that
are indicative of future credit risk and segments the portfolio on the basis of combinations of these parameters into smaller
homogenous portfolios from the perspective of credit behaviour. The PDs are computed for these homogenous portfolio
segments. The PDs are also used for Ind AS 109 ECL calculations and the Ind AS 109 Stage classification of the exposure.
4 (iii) Exposure at default
The outstanding balance as at the reporting date is considered as EAD by the Group. Considering that PD determined above
factors in amount at default, there is no separate requirement to estimate EAD.
4 (iv) Loss given default
The Group uses historical loss data for identified homogenous pools for the purpose of calculating LGD. The estimated
recovery cash flows are discounted such that the LGD calculation factors in the NPV of the recoveries.
4 (v) Significant increase in credit risk
The internal rating model evaluates the loans on an ongoing basis. The rating model also assesses if there has been a
significant increase in credit risk since the previously assigned risk grade One key factor that indicates significant increase
in credit risk is when contractual payments are more than 30 days past due.
4 (vi) Group’s loans measured on a collective basis
For Stage 3 loans ECL is calculated on an individual borrower basis.
For stages 1 and 2 the internal rating model analyses historical empirical data, determines parameters that are indicative of
future credit risk and segments the portfolio on the basis of a combination of these parameters into smaller homogeneous
portfolios. The loss estimation for these pools is hence done on a collective basis. In addition to information specific to
the borrower and the performance of the loan, the model may also utilise supplemental external information that could
affect the borrower’s behaviour. The model is also calibrated to incorporate external inputs such as GDP growth rate,
unemployment rate and factors specific to the sector/industry of the borrower.
126 |
NOTES
5. Inputs to the ECL model for forward looking economic scenarios
The internal rating model also provides for calibration to reflect changes in macroeconomic parameters and industry
specific factors.
6. Collateral
The Group is in the business of extending secured loans mainly backed by mortgage of property (residential or commercial).
In addition to the above mentioned collateral, the Group holds other types of collateral and credit enhancements, such as
cross-collateralisation on other assets of the borrower, share pledge, guarantees of parent/holding companies, personal
guarantees of promoters/proprietors, hypothecation of receivables via escrow account, hypothecation of receivables in
other bank accounts etc.
In its normal course of business, the Group does not physically repossess properties or other assets, but recovery efforts are
made on delinquent loans through on-rolls collection executives, along with legal means to recover due loan repayments.
Once contractual loan repayments are more than 90 days past due, repossession of property may be initiated under the
provisions of the SARFAESI Act 2002. Re-possessed property is disposed of in the manner prescribed in the SARFAESI act to
recover outstanding debt.
The Group did not hold any financial instrument for which no loss allowance is recognised because of collateral as at March
31, 2020. There was no change in the Group’s collateral policy during the year.
7. As at the year end the Group has undrawn loan commitments (after applying credit conversion factor) of Rs. 1,137.28 Crore
(Previous Year Rs. 2,125.89 Crore).
(10) Investments
As at March 31, 2020

Amortised At fair value Others Total
Cost Through other Through profit
comprehensive or loss
income
Mutual funds and Debt Funds - - 4,650.80 - 4,650.80
Government Securities 1,519.77 - - - 1,519.77
Debt Securities 21.38 - 3,086.25 - 3,107.63
Equity Instruments - 2,900.69 - - 2,900.69
Commercial Papers - - 98.57 - 98.57
Total gross (A) 1,541.15 2,900.69 7,835.62 - 12,277.46
Overseas Investments - 2,867.90 - - 2,867.90
Investments in India 1,541.15 32.79 7,835.62 - 9,409.56
Total (B) 1,541.15 2,900.69 7,835.62 - 12,277.46
Total (A) to tally with (B) - - - - -
Less: Allowance for Impairment loss (C) - - - - -
Total Net D = (A)-(C) 1,541.15 2,900.69 7,835.62 - 12,277.46
| 127
NOTES

Amortised At fair value Others* Total
income
Amount
Debt Securities 839.41 - 9,114.86 - 9,954.27
Equity Instruments - 14.35 - - 14.35
Associates - - - 482.56 482.56
Total gross (A) 2,361.21 14.35 16,858.49 482.56 19,716.61
Overseas Investments - - - 482.56 482.56
Investments in India 2,361.21 14.35 16,858.49 - 19,234.05
Total (B) 2,361.21 14.35 16,858.49 482.56 19,716.61
Less: Allowance for Impairment loss (C ) - - - - -
Total Net D = (A) -(C) 2,361.21 14.35 16,858.49 482.56 19,716.61
*At Cost
(1) On December 13, 2010 the Erstwhile Holding Company (IBFSL) had sold 26% shares held by it in Indian Commodity
Exchange Limited (ICEX) to Reliance Exchange Next Limited (R-Next) for a total consideration of Rs. 47.35 Crore against a
proportionate cost of Rs. 26.00 Crore. As a result thereof, the stake of IBFSL in ICEX has been reduced from 40% to 14% and
the same has been reclassified as a long term investment from the earlier classification of being an Associate. MMTC filed
a petition before the National Company Law Tribunal(NCLT)(Earlier known as Company Law Board)) against ICEX, R-Next
and IBFSL alleging that the transfer is null and void in terms of the Shareholders Agreement in view of the Forward Markets
Commission (FMC) guidelines. IBFSL contends that such view of MMTC is based on the old FMC guidelines and without
considering the amended FMC Guidelines dated June 17, 2010 wherein the transfer norms were relaxed. IBFSL had filed its
objections on maintainability of the petition which is pending adjudication before the NCLT.
(2) During the financial year 2016-17, the Company has invested Rs. 7.00 Crore by subscribing to 7,000,000 Equity Shares of
face value Rs. 5 per share, issued by Indian Commodity Exchange Limited through Rights issue. During the financial year
2018-19 the Company has sold 5,000,000 shares of Indian Commodity exchange for total consideration of Rs. 3.00 Crore.
(3) During the financial year 2015-16, the Company has invested Rs. 663.31 Crore in OakNorth Holdings Limited by subscribing
to 818,615 shares of face value of GBP 0.59 per share for 39.76% stake. OakNorth Bank- a licensed UK commercial bank is a
wholly owned subsidiary of OakNorth Holdings Limited. As at March 31, 2017 the Company had a stake of 38.73%. During
the financial year 2017-18 the Company has sold 277,000 shares from its stake in OakNorth Holdings Limited for Rs. 767.78
Crore and recorded a gross gain on sale of investment of Rs. 543.33 Crore in the Statement of Profit & Loss.
(4) During the year ended March 31, 2020, in respect of OakNorth Holdings Limited (“OakNorth” or “investee Company”),
the Company has lost significant influence due to a reduction of its effective holding in the Investee Company, which is
considered a deemed disposal of the Company’s investment in associate as per Ind AS 28 “Investments in Associates
and Joint Ventures” (Ind AS 28). Rs. 1,802 Crore of gain (net of tax) on deemed disposal of the Company’s investment in
associate arising due to a reduction of its effective holding and consequent loss of significant influence has been recorded
as Other Comprehensive Income. The gain on deemed disposal as per Ind AS 28 i.e., difference between the fair value on
the date of cessation of the associate and carrying value of the associate which should be recognized in the Statement of
Profit and Loss has been recorded in Other Comprehensive Income to harmonize the accounting with the recording of
impairment of financial instruments in the Other Comprehensive income in the financial statements of the Company, as
in the past, in the standalone financial statements, the Company had recorded fair value gains and realised gains on its
investment in OakNorth Holdings limited in Other Comprehensive Income. Due to above departure, there is no adverse
impact on the total equity, assets and liabilities or on the functioning of the Group.
128 |
NOTES
(11) Other financial assets (at amortised cost)
As at As at
March 31, 2020 March 31, 2019
Security Deposits 51.65 36.03
Interest only Scrip's receivable 1,155.94 1,416.73
Interest Accrued on Deposit accounts / Margin Money 106.00 81.01
Interest Accrued on investment 25.01 5.17
Other Receivable 82.23 40.15
Total 1,420.83 1,579.09
(12) Property, plant and equipment and intangible assets
Note 12.1 Property, plant and equipment
Leasehold Computers Furniture Motor Office Land* Building (1) Total

Improvements and and vehicles equipment
printers fixtures
Gross block
At April 1, 2018 37.90 48.25 25.02 81.82 19.02 0.42 8.23 220.66
Additions* 16.63 19.38 4.15 20.88 6.05 - 6.37 73.46
Disposals 2.74 0.15 0.51 2.01 0.42 - - 5.83
At March 31, 2019 51.79 67.48 28.66 100.69 24.65 0.42 14.60 288.29
Additions* 16.13 1.45 3.17 6.43 1.61 - - 28.79
Disposals 3.65 2.90 0.89 1.28 1.34 - - 10.06
At March 31, 2020 64.27 66.03 30.94 105.84 24.92 0.42 14.60 307.02
Depreciation
At April 1, 2018 21.50 34.35 12.77 38.72 13.51 - 0.29 121.14
Charge for the year 3.50 10.90 2.12 17.32 2.65 - 0.13 36.62
Disposals 1.51 0.15 0.31 1.79 0.40 - - 4.16
At March 31, 2019 23.49 45.10 14.58 54.25 15.76 - 0.42 153.60
Disposals 1.42 2.90 0.47 0.97 1.12 - - 6.88
At March 31, 2020 27.94 53.92 16.47 69.81 17.55 - 0.66 186.35
Net Block
At March 31, 2019 28.30 22.38 14.08 46.44 8.89 0.42 14.18 134.69
At March 31, 2020 36.33 12.11 14.47 36.03 7.37 0.42 13.94 120.67
| 129
NOTES
Note 12.2 Other Intangible assets
Software Total
Gross block
At April 1, 2018 37.79 37.79
Purchase 15.92 15.92
Disposals - -
At March 31, 2019 53.71 53.71
Purchase 5.79 5.79
Disposals - -
At Mar 31, 2020 59.50 59.50
Amortization
At April 1, 2018 26.27 26.27
Charge for the year 6.13 6.13
At March 31, 2019 32.40 32.40
At Mar 31, 2020 41.44 41.44
Net block
At March 31, 2019 21.31 21.31
At Mar 31, 2020 18.06 18.06
*Mortgaged as Security against Secured Non Convertible Debentures(Refer Note 15)
(1) Flat costing Re. 0.31 Crore (Previous Year Re. 0.31 Crore) Mortgaged as Security against Secured Non Convertible Debentures
(Refer Note 15)
(13) Other non financial assets
As at As at
March 31, 2020 March 31, 2019
Capital Advances 26.95 29.96
Others including Prepaid Expenses/Cenvat Credit and Employee advances 406.23 452.28
Total 433.18 482.24
(14) Trade Payables
As at As at
March 31, 2020 March 31, 2019
(a) Total outstanding dues of micro enterprises and small enterprises*; and - -
(b) Total outstanding dues of creditors other than micro enterprises and small 11.70 32.29
enterprises
11.70 32.29
* Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006:
(a) An amount of Nil and Nil was due and outstanding to suppliers as at the end of the accounting year on account of Principal
and Interest respectively.
(b) No interest was paid during the year in terms of section 16 of the Micro, Small and Medium Enterprises Development Act,
2006 and no amount was paid to the supplier beyond the appointed day.
130 |
NOTES
(c) No amount of interest is due and payable for the period of delay in making payment but without adding the interest
specified under the Micro, Small and Medium Enterprises Development Act, 2006
(d) No interest was accrued and unpaid at the end of the accounting year.
(e) No further interest remaining due and payable even in the succeeding years for the purpose of disallowance of a deductible
expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Group. This has been relied upon by the Auditors.
(15) Debt Securities
As at As at
March 31, 2020 March 31, 2019
Secured
Debentures*(Refer Note 33(i)) 32,617.01 44,065.61
Unsecured
Commercial Paper - 5,330.00
Total gross (A) 32,617.01 49,395.61
Debt securities in India 29,680.76 47,755.99
Debt securities outside India 2,936.25 1,639.62
Total (B) to tally with (A) 32,617.01 49,395.61
*Redeemable Non-Convertible Debentures are secured against Immovable Property / Other Financial Assets and pool of Current
and Future Loan Receivables of the Group (including investments).
(16) Borrowings other than debt securities*
As at As at
March 31, 2020 March 31, 2019
Secured
Loans from bank and others* (Refer Note 33(ii)) 32,028.84 41,023.39
From banks- Cash Credit Facility* 978.40 5,980.51
From banks- Working Capital Loan* 5,708.82 3,915.00
Securitisation Liability* 3,389.14 768.35
Unsecured
Lease Liability 264.82 -
Total gross (A) 42,370.02 51,687.25
Borrowings in India* 37,223.83 46,868.38
Borrowings outside India (ECB)* 5,146.19 4,818.87
*Secured by hypothecation of Loan Receivables (Current and Future) / Other financial Assets / Cash and Cash Equivalents of the
Group (including investments).
(17) Subordinated liabilities
As at As at
March 31, 2020 March 31, 2019
- 10.60% Non convertible Subordinated Perpetual Debentures* 100.00 100.00
- Subordinate Debt (Refer Note 33(iii)) 4,587.46 4,573.34
Total gross (A) 4,687.46 4,673.34
Subordinated Liabilities in India 4,687.46 4,673.34
Subordinated Liabilities outside India - -
*Put Option or Call Option exercisable at the end of 10 years from the date of allotment only with the prior approval of the
concerned regulatory authority.
| 131
NOTES
(18) Other financial liabilities (at amortised cost)
As at As at
March 31, 2020 March 31, 2019
Interest accrued but not due on borrowings 1,512.55 1,967.56
Foreign Currency Forward premium payable 512.70 295.74
Amount payable on Assigned Loans 633.53 981.46
Other liabilities 373.85 170.14
Temporary Overdrawn Balances as per books 3,377.05 3,273.07
Unclaimed Dividends* 4.67 4.65
Servicing liability on assigned loans 158.83 126.52
Total 6,573.18 6,819.14
*In respect of amounts as mentioned under Section 124 of the Companies Act, 2013, there were no dues (Previous Year Rs. Nil)
required to be credited to the Investor Education and Protection Fund as on March 31, 2020.
(19) Provisions
As at As at
March 31, 2020 March 31, 2019
Provision for employee benefits (Refer Note 30)
Provision for Compensated absences 21.71 21.47
Provision for Gratuity 56.29 49.76
Provision for Superannuation 114.76 101.13
Provisions for Loan Commitments 4.19 0.99
Corporate Dividend Tax on Preference shares - 2.78
Total 196.95 176.13
(20) Other Non-financial Liabilities
As at As at
March 31, 2020 March 31, 2019
Statutory Dues Payable and other non financial liabilities 620.93 667.68
Total 620.93 667.68
(21) Equity share capital
Details of authorized, issued, subscribed and paid up share capital
As at As at
March 31, 2020 March 31, 2019
Authorized share Capital
3,000,000,000 (March 31, 2019 3,000,000,000) Equity Shares of face value Rs. 2 each 600.00 600.00
1,000,000,000 (March 31, 2019 1,000,000,000) Preference Shares of face value Rs.10 1,000.00 1,000.00
each
1,600.00 1,600.00
Issued , Subscribed & Paid up capital
Issued and Subscribed Capital
419,174,091 (March 31, 2019 - 427,403,339) Equity Shares of Rs. 2/- each 83.83 85.48
Called-Up and Paid Up Capital
Fully Paid-Up
419,174,091 (March 31, 2019 - 427,403,339) Equity Shares of Rs. 2/- each
The Company has only one class of Equity Shares of face value Rs. 2 each (Previous Year
Rs. 2 each) fully paid up. Each holder of Equity Shares is entitled to one vote per share.
The final dividend proposed by the Board of Directors, if any, is subject to the approval
of the Shareholders in the ensuing Annual General Meeting, if applicable.
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.
Total 83.83 85.48
132 |
NOTES
(i) As at March 31, 2020 4,004,745 (Previous Year 2,593,852) GDR’s were outstanding and were eligible for conversion into
Equity Shares. The Company does not have information with respect to holders of these GDR’s. Holders of Global Depository
Receipts (GDRs) will be entitled to receive dividends, subject to the terms of the Deposit Agreement, to the same extent
as the holders of Equity Shares, less the fees and expenses payable under such Deposit Agreement and any Indian tax
applicable to such dividends. Holders of GDRs will not have voting rights with respect to the Deposited Shares. The GDRs
may not be transferred to any person located in India including Indian residents or ineligible investors except as permitted
by Indian laws and regulations.
The reconciliation of equity shares outstanding at the beginning and at the end of the reporting period.
Name of the shareholder As at March 31, 2020 As at March 31, 2019

No. of shares Rs. in Crore No. of shares Rs. in Crore
Equity Share at the beginning of period 427,403,339 85.48 426,535,786 85.31
Add:
Equity Share Allotted during the period
ESOP exercised during the period(Refer note (v)) 170,752 0.03 867,553 0.17
Less: Investment in Treasury Shares (Own Shares) 8,400,000 1.68 - -
during the FY 2019-20
Equity share at the end of period 419,174,091 83.83 427,403,339 85.48
Details of shareholders holding more than 5% shares in the Company
Name of the shareholder As at March 31, 2020

No. of shares % of holding
Promoter
Inuus Infrastructure Private Limited 82,943,325 19.40%
Non - Promoters
Life Insurance Corporation Of India 45,823,723 10.72%
Total 128,767,048 30.12%

Promoter
SG Advisory Services Private Limited 27,204,779 6.37%
Non - Promoters
Total 73,032,152 17.09%
As per 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.
(ii) Employees Stock Options Schemes:
Grants During the Year:
There has been no new grants of ESOPs during the current financial year (Previous year 10,000,000 ESOPs)
| 133
NOTES
(iii) Employee Stock Benefit Scheme 2019 (“Scheme”).
The Scheme has been adopted and approved pursuant to: (a) a resolution of the Board of Directors of INDIABULLS
HOUSING FINANCE LIMITED at its meeting held on November 6, 2019; and (b) a special resolution of the shareholders’ of
the Company passed through postal ballot on December 23, 2019, result of which were declared on December 24, 2019.
This Scheme comprises:
a. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Option Plan 2019 (“ESOP Plan 2019”
b. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Purchase Plan 2019 (“ESP Plan 2019”)
c. INDIABULLS HOUSING FINANCE LIMITED Stock Appreciation Rights Plan 2019 (“SARs Plan 2019”)
In accordance with the ESOP Regulations, the Company had set up Indiabulls Housing Finance Limited Employee Welfare
Trust (Trust) for the purpose of implementation of ESOP Scheme. The Scheme is administered through ESOP Trust, whereby
shares held by the ESOP Trust are transferred to the employees, upon exercise of stock options as per the terms of the
Scheme.
Particular As at As at As at As at As at
March 31, 2020 March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Equity shares allotted as fully paid bonus - - - - -
shares by capitalization of securities
premium
(v) The other disclosures in respect of the ESOS / ESOP Schemes are as under:-
Particulars IHFL-IBFSL IHFL-IBFSL IHFL ESOS - IHFL ESOS -

Employees Employees 2013 2013
Stock Option Stock Option
Plan II – 2006 – 2008
Total Options under the Scheme 720,000 7,500,000 39,000,000 39,000,000
Total Options issued under the Scheme 720,000 7,500,000 10,500,000 10,500,000
Vesting Period and Percentage Four Ten years,15% Five years, Five years,
years,25% First year, 20% each 20% each
each year 10% for next year year
eight years
and 5% in last
year
First Vesting Date 1st 8th 12th October, 12th August,
November, December, 2015 2018
2008 2009
Revised Vesting Period & Percentage Nine N.A. N.A. N.A.
years,11%
each year for
8 years and
12% during
the 9th year
Exercise Price (Rs.) 100.00 95.95 394.75 1,156.50
Exercisable Period 5 years from 5 years from 5 years from 5 years from
each vesting each vesting each vesting each vesting
date date date date
Outstanding at the beginning of the year (Nos.) 1,152 70,676 4,025,556 10,336,500
Options vested during the year (Nos.) - - 2,004,000 -
134 |
NOTES
Plan II – 2006 – 2008
Exercised during the year (Nos.) - 54,812 111,800 -
Expired during the year (Nos.) - - - -
Cancelled during the year - - - -
Lapsed during the year - - 124,000 2,612,500
Re-granted during the year - - - N.A
Outstanding at the end of the year (Nos.) 1,152 15,864 3,789,756 7,724,000
Exercisable at the end of the year (Nos.) 1,152 15,864 3,789,756 1,931,000
Remaining contractual Life (Weighted Months) 19 39 46 67
N.A - Not Applicable
Particulars IHFL ESOS - IHFL ESOS - IHFL-IBFSL IHFL-IBFSL
2013 2013 Employees Employees
Stock Option Stock
– 2008 Option –
-Regrant 2008-Regrant
Total Options under the Scheme 39,000,000 39,000,000 N.A. N.A.
Total Options issued under the Scheme 100,000 10,000,000 N.A. N.A.
Vesting Period and Percentage Five years, Five years, N.A. N.A.
20% each 20% each
year year
First Vesting Date 25th March, 10th March, 31st 16th July,
2019 2020 December, 2011
2010
Revised Vesting Period & Percentage N.A. N.A. Ten years, Ten years,
10% for every 10% for every
year year
Exercise Price (Rs.) 1,200.40 702.00 125.90 158.50
date date date date
Outstanding at the beginning of the year(Nos.) - 10,000,000 15,030 38,880
Options vested during the year (Nos.) - - 6,390 19,440
Exercised during the year (Nos.) - - 4,140 -
Lapsed during the year - 3,117,600 - -
Re-granted during the year N.A N.A N.A N.A
Outstanding at the end of the year (Nos.) - 6,882,400 10,890 38,880
Exercisable at the end of the year (Nos.) - - 10,890 19,440
Remaining contractual Life (Weighted Months) N.A 89 50 57
| 135
NOTES
Particulars IHFL-IBFSL IHFL-IBFSL IHFL-IBFSL

Employees Employees Employees
Stock Option Stock Option Stock Option
Plan – 2006 - – 2008 Plan II – 2006
Regrant -Regrant -Regrant
Total Options under the Scheme N.A. N.A. N.A.
Total Options issued under the Scheme N.A. N.A. N.A.
Vesting Period and Percentage N.A. N.A. N.A.
First Vesting Date 27th August, 11th January, 27th August,
2010 2012 2010
Revised Vesting Period & Percentage Ten years, Ten years, Ten years,
10% for every 10% for every 10% for every
year year year
Exercise Price (Rs.) 95.95 153.65 100.00
Exercisable Period 5 years from 5 years from 5 years from
each vesting each vesting each vesting
date date date
Outstanding at the beginning of the year(Nos.) 39,500 3,000 21,900
Options vested during the year (Nos.) 39,500 1,500 21,900
Exercised during the year (Nos.) - - -
Expired during the year (Nos.) - - -
Cancelled during the year - - -
Lapsed during the year - - -
Re-granted during the year N.A N.A N.A
Outstanding at the end of the year (Nos.) 39,500 3,000 21,900
Exercisable at the end of the year (Nos.) 39,500 1,500 21,900
Remaining contractual Life (Weighted Months) 53 63 53
The details of the Fair value of the options as determined by an Independent firm of Chartered Accountants, for the
respective plans using the Black-Scholes Merton Option Pricing Model:-
Particulars IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL
Employees Employees Employees Employees Employees
Stock Stock Stock Stock Stock
Option Option Option Option Plan Option
– 2008 – 2008 – 2006- II – 2006- – 2008
Regrant Regrant Regrant Regrant Regrant
Exercise price (Rs.) 125.90 158.50 95.95 100.00 153.65
Expected volatility* 99.61% 99.60% 75.57% 75.57% 99.60%
Option Life (Weighted Average) 9.80 Years 9.80 Years 9.80 Years 9.80 Years 9.80 Years
Expected Dividends yield 3.19% 2.89% 4.69% 4.50% 2.98%
Weighted Average Fair Value (Rs.) 83.48 90.24 106.3 108.06 84.93
Risk Free Interest rate 7.59% 7.63% 7.50% 7.50% 7.63%
136 |
NOTES
Particulars IHFL - IBFSL IHFL ESOS - IHFL ESOS - IHFL ESOS - IHFL ESOS -
Employees 2013 2013 2013 2013
Stock (Grant 1) (Grant 2) (Grant 3) (Grant 4)
Option –
2008
Exercise price (Rs.) 95.95 394.75 1,156.50 1,200.40 702.00
Expected forfeiture percentage on each vesting date Nil Nil Nil Nil Nil
Option Life (Weighted Average) 11 Years 5 Years 3 Years 3 Years 3 Years
*The expected volatility was determined based on historical volatility data.
(vi) 18,527,342 Equity Shares of Rs. 2 each (Previous Year : 24,552,194) are reserved for issuance towards Employees Stock
options as granted.
(vii) The weighted average share price at the date of exercise of these options was Rs. 682.59 per share (Previous Year Rs.
782.49 per share).
(22) Other equity
Particulars As at As at
March 31, 2020 March 31, 2019
Capital Reserve(1)
Balance as per last Balance Sheet 13.92 13.92
Add: Additions during the year - -
Closing Balance 13.92 13.92
Capital Redemption Reserve(2)
Securities Premium Account(3)
Balance as per last Balance Sheet 7,512.74 7,483.25
Add: Additions during the year on account of ESOPs 4.96 23.71
Add: Transfer from Stock compensation 1.32 7.47
7,519.02 7,514.43
Less: Share/Debenture issue expenses written off - 1.69
Less: Investment in Treasury Shares (Own Shares) 258.01 -
Closing Balance 7,261.01 7,512.74
Debenture Premium Account (4)

Add: Additions during the year on account - 0.01
| 137
NOTES
March 31, 2020 March 31, 2019
Stock Compensation Adjustment(5)
Add: Additions during the year 27.32 77.88
Less: Transferred to Share Premium account 1.32 7.47
Less: Utilised during the year 2.03 -
Special Reserve u/s 36(1)(viii) of I Tax Act, 1961 (6)

General Reserve(7)
Add: Amount Transferred during the year 150.00 210.00
Closing Balance 1,105.99 955.99
Reserve Fund
Reserve (I)(As per Section 29C of the Housing Bank Act, 1987)(8)
Balance As per last Balance Sheet 1,568.06 1,209.21
Reserve (III) (8)

Additional Reserve(8) & 11(b)
(U/s 29C of the National Housing Bank Act, 1987)
Balance As per last Balance Sheet 964.71 664.71
Add: Additions during the year - 300.00
Less: Amount utilised during the year 964.71 -
Closing Balance - 964.71
Reserve Fund
Reserve (II)(9)
Less: Amount Utilised - -
Debenture Redemption Reserve (10)

Less: Amount Utilised - -
138 |
NOTES
March 31, 2020 March 31, 2019
Share based Payment reserve(5)
Add: Additions during the year 4.40 -
Foreign Currency Translation Reserve(14)
Balance As per last Balance Sheet (0.01) -
Add: Additions during the year 0.03 (0.01)
Closing Balance 0.02 (0.01)
Retained Earnings(12)
Add: Additions during the year (including transfer from OCI to be recognised directly in 2,207.04 4,093.78
retained earnings)
Less: Amount utilised during the year 2,478.53 3,841.38
1,317.72 1,589.21
Other Comprehensive Income(13)
Balance As per last Balance Sheet (127.32) (118.53)
Less: Amount utilised during the year (11)(a)
(371.91) (8.79)
Closing Balance (499.23) (127.32)
15,453.82 16,396.64
(1) Capital reserve is created on receipt of non refundable debenture warrants exercise price.
(2) Capital redemption reserve is created on redemption of preference shares.
(3) Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
(4) Debenture premium account is used to record the premium on issue of debenture.
(5) Stock Compensation Adjustment is created as required by Ind AS 102 ‘Share Based Payments’ on the Employee Stock
Option Scheme operated by the Company for employees of the Group.
(6) This includes reserve created under section 36(1)(viii) of the Income Tax Act, 1961, by the Erstwhile Holding Company
Indiabulls Financial Services Limited, which has been transferred to IBHFL under the Scheme of Arrangement during the
year ended March 31, 2013.
(7) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.
(8) In terms of Section 29C of the National Housing Bank (“NHB”) Act, 1987, the Company is required to transfer at least 20%
of its Profit after tax to a Reserve Fund before any dividend is declared. Transfer to a Reserve Fund in terms of Section 36(1)
(viii) of the Income Tax Act, 1961 is also considered as an eligible transfer as transfer to Special Reserve under Section 29C
of the National Housing Bank (“NHB”) Act, 1987. The Company has transferred an amount of Rs. 220.00 Crore (Previous
Year Rs. 387.00 Crore) to reserve created in terms of Section 36(1)(viii) of the Income Tax Act, 1961 termed as “Reserve
(III)” and also transferred an amount of Rs. 211.98 Crore (Previous Year Rs. 358.85 Crore) to the Reserve in terms of Section
29C of the National Housing Bank (“NHB”) Act, 1987 as at the year end. Further an additional amount of Rs. Nil (Previous
Year Rs. 300.00 Crore) has been set apart by way of transfer to Additional Reserve Fund in excess of the statutory minimum
requirement as specified under Section 29C pursuant to Circular no. NHB(ND)/DRS/Pol-No. 03/2004-05 dated August 26,
| 139
NOTES
2004 issued by the National Housing Bank. The additional amount so transferred may be utilised in the future for any
business purpose.
(9) This includes reserve created under section 45-IC of the Reserve Bank of India Act 1934, by the Erstwhile Holding Company
Indiabulls Financial Services Limited, which has been transferred to IBHFL under the Scheme of Arrangement during the
year ended March 31, 2013.
(10) The Companies Act 2013 requires companies that issue debentures to create a debenture redemption reserve from annual
profits until such debentures are redeemed. The Company is required to transfer a specified percentage (as provided in the
Companies Act, 2013) of the outstanding redeemable debentures to debenture redemption reserve. The amounts credited
to the debenture redemption reserve may not be utilised except to redeem debentures. On redemption of debentures, the
amount may be transferred from debenture redemption reserve to General Reserve.
(11) The Group’s total amount of impairment of financial instruments reflects among other things, an increased risk of
deterioration in macro-economic factors and the impact on the Group’s borrowers caused by the COVID-19 pandemic.
Accordingly, during the year ended March 31, 2020 the Group has:
(a) Debited an amount of Rs. 1,798 Crores on account of impairment on financial instruments to Other Comprehensive
Income to harmonise the accounting with the gains recorded on deemed disposal of OakNorth Holdings Limited. In
the past, IBHFL had recorded fair value gains and realised gains on its investment in OakNorth Holdings limited in
Other Comprehensive Income. The amount of impairment of financial instruments includes the amount of fair value
change in Yes Bank Bond as mentioned in point C below.
(b) Debited additional special reserve created under u/s 29 (c) as per the NHB circular no. NHB (ND)/DRS/Pol-
No.03/2004-05 dated August 26, 2004 for an amount of Rs. 964.71 crores in respect of impairment of financial
instruments.
(c) Besides the total provisions of Rs. 3,741 Crore, the Group has also recorded fair value impairment of Rs. 636 Crores
on AT-1 bonds of Yes Bank Limited to record the effect of the scheme of reconstruction announced by RBI on (March
5, 2020)
(d) Due to these departures there is no adverse impact on the total equity, assets, and liabilities or the functioning of
the Group.
(12) Retained earnings represents the surplus in Profit and Loss Account and appropriations.
(13) Other comprehensive income includes fair value gain/(loss) on equity instruments and effective portion of cash flow hedge.
(14) Reserve arising on conversion of Foreign currency in INR of wholly owned subsidiary.
(23) Interest Income
Year ended March 31, 2020

Interest income On financial Total
on securities assets measured
classified at fair at Amortised
value through cost
profit and loss
Interest on Loans - 10,930.83 10,930.83
Interest on Pass Through Certificates / Bonds 214.21 144.05 358.26
Interest on deposits with Banks - 259.51 259.51
Total 214.21 11,334.39 11,548.60
140 |
NOTES

value through cost
profit and loss
Total 144.71 14,711.24 14,855.95
(24) Dividend Income

March 31, 2020 March 31, 2019
Dividend Income on Mutual Funds/Shares/etc. 863.04 472.60
Total 863.04 472.60
(25) Fees and Commission Income

March 31, 2020 March 31, 2019
Commission on Insurance 0.92 32.64
Other Operating Income 199.31 198.01
Income from Advisory Services 107.15 141.35
Income from Service Fee 44.41 77.97
Total 351.79 449.97
(26) Net gain/ (loss) on fair value changes

March 31, 2020 March 31, 2019
Net gain/ (loss) on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments (120.63) 598.58
- Derivatives 0.67 (30.53)
Total Net gain/(loss) on fair value changes (A) (119.96) 568.05
Fair Value changes:
- Realised (308.73) 543.78
- Unrealised 188.77 24.27
Total Net gain/(loss) on fair value changes(B) to tally with (A) (119.96) 568.05
(27) Other Income

March 31, 2020 March 31, 2019
Miscellaneous Income 6.52 7.09
Sundry Credit balances written back/ Bad debt recovered 0.27 0.33
Total 6.79 7.42
| 141
NOTES
(28) Finance Costs

March 31, 2020 March 31, 2019
On financial On financial
liabilities liabilities
measured at measured at
Amortised cost Amortised cost
Debt Securities 3,614.86 5,273.18
Borrowings (Other than Debt Securities)(1) 4,056.08 3,697.98
Subordinated Liabilities 447.54 425.63
Processing and other Fee 116.34 108.71
Bank Charges 2.63 2.93
FCNR Hedge Premium 157.74 151.54
Other Interest Expenses 116.73 65.56
Total 8,511.92 9,725.53
1) Includes premium on principal only swaps on foreign currency loans amounting to Rs. 133.91 Crore (Previous Year Rs.120.89
Crore).
2) Disclosure of Foreign Currency Exposures:-
Particulars Foreign Year Ended March 31, 2020

Currency Exchange Amount Amount
Rate in Foreign
Currency
I. Assets
Receivables (trade & other) N.A. - - -
Other Monetary assets N.A. - - -
Total Receivables (A) N.A. - - -
Hedges by derivative contracts (B) N.A. - - -
Unhedged receivables (C=A-B) N.A. - - -
II. Liabilities
Payables (trade & other)
Borrowings (ECB and Others) USD 75.3859 107.89 8,133.14
Total Payables (D) USD 75.3859 107.89 8,133.14
Hedges by derivative contracts (E) USD 75.3859 107.89 8,133.14
Unhedged Payables (F=D-E) USD 75.3859 - -
III. Contingent Liabilities and Commitments
Contingent Liabilities N.A. - - -
Commitments N.A. - - -
Total (G) N.A. - - -
Hedges by derivative contracts(H) N.A. - - -
Unhedged Payables (I=G-H) N.A. - - -
Total unhedged FC Exposures (J=C+F+I) N.A. - - -
Note: For the above disclosure, Interest accrued on borrowings at respective year end has not been considered
142 |
NOTES

Rate in Foreign
Currency
I. Assets
II. Liabilities
Note: For the above disclosure, Interest accrued on borrowings at respective year end has not been considered.
(29) Impairment on financial instruments

March 31, 2020 March 31, 2019
On financial assets measured at
Amortised cost
ECL on Loans / Bad Debts Written Off (Net of Recoveries) (1) 1,062.78 577.58
Total 1,062.78 577.58
(1) ECL on loans / Bad Debts Written Off (Net of Recoveries) includes;
Particulars Year ended Year ended

March 31, 2020 March 31, 2019
ECL on Loan Assets 895.16 602.26
Bad Debt /advances written off / Bad Debt Recovery* 167.62 (24.68)
Total 1,062.78 577.58
*Net of Bad Debt Recovery of Rs. 752.87 Crore (Previous Year Net of Bad Debt /advances written off of Rs. 199.94 Crore).
| 143
NOTES
(30) Employee Benefits Expenses

March 31, 2020 March 31, 2019
Salaries and wages 519.67 647.52
Contribution to provident and other funds 11.63 11.48
Share Based Payments to employees 29.70 77.88
Staff welfare expenses 9.80 10.95
Provision for Gratuity, Compensated Absences and Superannuation Expense (1)
34.01 29.62
Total 604.81 777.45
(1) Employee Benefits – Provident Fund, ESIC, Gratuity and Compensated Absences disclosures as per Indian Accounting Standard
(IndAS) 19 – Employee Benefits:
Contributions are made to Government Provident Fund and Family Pension Fund, ESIC and other statutory funds which cover
all eligible employees under applicable Acts. Both the employees and the Company make predetermined contributions to the
Provident Fund and ESIC. The contributions are normally based on a certain proportion of the employee’s salary. The Group has
recognised an amount of Rs. 11.63 Crore (Previous year Rs. 11.48 Crore) in the Statement of Profit and Loss towards Employers
contribution for the above mentioned funds.
Provision for unfunded Gratuity and Compensated Absences for all employees is based upon actuarial valuations carried out at
the end of every financial year. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.
Pursuant to the issuance of the Indian Accounting Standard (IndAS) 19 on ‘Employee Benefits’, commitments are actuarially
determined using the ‘Projected Unit Credit’ Method. Gains and losses on changes in actuarial assumptions are accounted for in
Disclosure in respect of Gratuity, Compensated Absences and Superannuation:
Particulars 2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 2018-2019

Gratuity Compensated Absences Superannuation
Reconciliation of liability recognised in the
Balance Sheet:
Present Value of commitments (as per Actuarial 56.15 49.64 21.68 21.44 114.76 101.13
valuation)
Fair value of plan assets - - - - - -
Net liability in the Balance sheet (as per 56.15 49.64 21.68 21.44 114.76 101.13
Actuarial valuation)
Movement in net liability recognised in the
Balance Sheet:
Net liability as at the beginning of the year 49.63 39.33 21.45 17.42 101.13 92.15
Amount (paid) during the year/Transfer (4.02) (1.30) - - - -
adjustment
Net expenses recognised / (reversed) in the 13.57 12.53 0.54 4.03 14.19 13.03
Statement of Profit and Loss
Actuarial changes arising from changes in 0.01 - - - - -
Demographic assumptions
Actuarial changes arising from changes in 6.70 1.25 0.07 - 6.34 1.86
financial assumptions
Experience adjustments (9.74) (2.18) (0.38) - (6.90) (5.91)
Net liability as at the end of the year 56.15 49.63 21.68 21.45 114.76 101.13
Expenses recognised in the Statement of Profit
and Loss:
Current service cost 9.66 9.23 5.15 5.78 6.34 5.71
Past service cost - - - - - -
Interest Cost 3.91 3.30 1.68 1.48 7.85 7.32
Actuarial (gains) / losses - - (6.29) (3.24) - -
144 |
NOTES
Particulars 2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 2018-2019
Gratuity Compensated Absences Superannuation
Expenses charged / (reversal) to the Statement 13.57 12.53 0.54 4.02 14.19 13.03
of Profit and Loss
Return on Plan assets:
Actuarial (gains) / losses N.A. N.A. N.A. N.A. N.A. N.A.
Actual return on plan assets N.A. N.A. N.A. N.A. N.A. N.A.
Reconciliation of defined-benefit commitments:
Commitments as at the beginning of the year 49.63 39.33 21.45 17.42 101.13 92.15
Current service cost 9.66 9.23 5.15 5.78 6.34 5.71
Past service cost - - - - - -
Interest cost 3.91 3.30 1.68 1.48 7.85 7.32
(Paid benefits) (4.02) (1.30) - - - -
Actuarial (gains) / losses - - (6.29) (3.24) - -
Actuarial changes arising from changes in 0.01 - -
Demographic assumptions
Actuarial changes arising from changes in 6.70 1.25 0.07 - 6.34 1.86
financial assumptions
Experience adjustments (9.74) (2.18) (0.38) - (6.90) (5.92)
Commitments as at the end of the year 56.15 49.63 21.68 21.44 114.76 101.12
Reconciliation of Plan assets:
Plan assets as at the beginning of the year N.A. N.A. N.A. N.A. N.A. N.A.
Contributions during the year N.A. N.A. N.A. N.A. N.A. N.A.
Paid benefits N.A. N.A. N.A. N.A. N.A. N.A.
Actuarial (gains) / losses N.A. N.A. N.A. N.A. N.A. N.A.
Plan assets as at the end of the year N.A. N.A. N.A. N.A. N.A. N.A.
N.A - not applicable
The actuarial calculations used to estimate commitments and expenses in respect of unfunded Gratuity, Compensated absences
and Superannuation (Pension & Medical coverage) are based on the following assumptions which if changed, would affect the
commitment’s size, funding requirements and expenses:
Particulars Gratuity (Unfunded) Compensated Superannuation
Absences (Unfunded) (Unfunded)
2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 2018-2019
Discount Rate 6.80% 7.65% 6.80% 7.65% 6.80% 7.65%
Expected rate of salary increase 6.00% 6.00% 6.00% 6.00% For 20- 6.00%
21 0%
thereafter
6%
Mortality IALM IALM IALM IALM IALM IALM
(2012-14) (2006-08) (2012-14) (2006-08) (2012-14) (2006-08)
Retirement Age (Years) 60 60 60 60 60 60
The employer’s best estimate of contributions expected to be paid during the annual period beginning after the Balance Sheet
date, towards Gratuity, Compensated Absences and Superannuation is Rs. 13.85 Crore (Previous Year Rs. 15.79 Crore) Rs. 6.09
Crore (Previous Year Rs. 8.08 Crore) and Rs. 14.87 Crore (Previous Year Rs. 19.16 Crore) respectively.
A quantitative sensitivity analysis for significant assumption is as shown below:
| 145
NOTES
Gratuity
March 31, 2020 March 31, 2019

Assumptions Discount rate
Sensitivity Level 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease
Impact on defined benefit obligation (3.92) 4.33 (3.49) 3.85
Gratuity
March 31, 2020 March 31, 2019

Assumptions Future salary increases
Impact on defined benefit obligation 4.34 (3.98) 3.89 (3.56)
Leave Encashment
March 31, 2020 March 31, 2019

Leave Encashment
March 31, 2020 March 31, 2019

Superannuation
March 31, 2020 March 31, 2019

Superannuation
March 31, 2020 March 31, 2019

Impact on defined benefit obligation - - - -
146 |
NOTES
The following payments are expected contributions to the defined benefit plan in future years:
Expected payment for future years Gratuity Leave Encashment Superannuation

31-Mar-20 31-Mar-19 31-Mar-20 31-Mar-19 31-Mar-20 31-Mar-19
Within the next 12 months 2.35 2.24 1.07 1.07 1.79 1.70
(next annual reporting period)
Between 1 and 2 years 1.03 0.73 0.44 0.59 1.53 1.35
Beyond 6 years 48.36 43.49 18.33 18.16 105.02 92.44
Total expected payments 56.16 49.64 21.69 21.44 114.76 101.13
(31) Other expenses

March 31, 2020 March 31, 2019
Rent 7.78 75.43
Rates & Taxes Expenses 1.90 2.79
Repairs and maintenance 32.36 30.38
Communication Costs 11.49 10.88
Membership Fee 0.05 0.12
Printing and stationery 2.65 5.24
Advertisement and publicity 33.60 17.56
Fund expenses 10.93 14.16
Audit Fee(1) 3.09 3.04
Legal and Professional charges (1)
24.91 17.59
Subscription charges 0.15 0.40
CSR expenses(2) 87.38 69.51
Director's fees 0.22 0.24
Travelling and Conveyance 10.73 12.64
Stamp Duty 9.76 14.50
Recruitment Expenses 0.58 2.30
Service Charges 0.01 0.06
Business Promotion 3.19 8.55
Electricity and water 8.34 9.72
Miscellaneous Expenses 3.58 3.49
Total 255.03 299.75
| 147
NOTES
(1) Fees paid to the auditors include:

March 31, 2020 March 31, 2019
As auditor
Audit Fee 3.09 3.04
Certification fee* 1.49 0.10
Others - -
4.58 3.14
*Included in Legal and Professional Charges
(2) In respect of Corporate Social Responsibility activities, gross amount required to be spent by the Group during the year was
Rs. 87.38 Crore (Previous Year Rs. 69.51 Crore) and Group has spent Rs. 87.38 Crore (Previous Year Rs. 69.51 Crore).
(32) Tax Expenses
The Group has elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961, as introduced by
the Taxation Laws (Amendment) Ordinance, 2019. The effective applicable corporate tax rate for the Company is now 25.17%.
Accordingly, the Group has recognized provision for Income Tax for year ended March 31, 2020 and re-measured its Deferred Tax
asset/liability basis the rate prescribed in the aforesaid section. The major components of income tax expense for the year ended
March 31, 2020 and March 31, 2019 are:
Profit or loss section Year ended Year ended

March 31, 2020 March 31, 2019
Current income tax:
Current income tax charge 371.26 1,192.71
Adjustments in respect of current income tax of previous year (0.07) (0.01)
Deferred tax:
Relating to origination and reversal of temporary differences 23.78 353.49
Income tax expense reported in the statement of profit or loss 394.97 1,546.19
Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2020:

March 31, 2020 March 31, 2019
Accounting profit before tax from continuing operations 2,560.89 5,603.98
Profit/(loss) before tax from a discontinued operation - -
Accounting profit before income tax 2,560.89 5,603.98
Tax at statutory Income Tax rate of 25.17% (Previous Year 34.94%) 657.81 1,958.56
Tax on Expenses / deductions Allowed/Disallowed in Income tax Act (262.84) (412.37)
Tax on Expenses allowed/disallowed in income Tax Act (17.07) 24.83
Deduction u/s 36(i)(viii) (53.41) (150.52)
Net Addition/deduction u/s 36(i)(viia) 13.09 0.68
Income Exempt for Tax Purpose (227.88) (190.27)
Long Term Capital Gain on Sale of Investments (1.93) (98.71)
Others 24.36 1.61
Tax expenses related to the profit for the year (a) 394.97 1,546.19
Tax on Other comprehensive income (b) 99.81 5.23
Total tax expenses for the comprehensive income (a+b) 494.78 1,551.42
148 |
NOTES
Deferred Tax
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
Particulars Deferred tax Deferred tax Income OCI

assets liability statement
March 31, 2020 March 31, 2020 Year ended Year ended
March 31, 2020 March 31, 2020
Depreciation 25.48 0.09 14.69 -
Impairment allowance for financial assets 1,097.70 - (149.96) 604.72
Fair value of financial instruments held for - 46.52 (2.79) -
trading
Remeasurement gain / (loss) on defined benefit 48.53 - (11.06) (0.51)
plan
Impact on Borrowings using effective rate of - 60.79 22.92 -
interest
Gain / loss on equity instrument designated at 0.05 516.92 - (516.92)
FVOCI
Derivative instruments in cash flow hedge 81.22 - - 12.52
relationship
Disallowance under section 35DD of the - - (0.01) -
Income Tax Act,1961
Impact on Loans using Effective Rate of Interest 14.07 - (64.41) -
Provision for dimunition in value of investment 0.53 - 0.53 -
Difference between accounting income and - 16.98 (16.01) -
taxable income on investments
Provision for bad debts under section 36(1) - 2.19 3.29 -
(viia) of the Income Tax Act,1961
Share based payments 28.02 - (10.89) -
Impact on account of EIS and Servicing assets/ - 250.96 199.89 -
liability
Right of use assets - (0.09) 0.09 -
Other temporary differences - 12.96 (10.06) -
Total 1,295.60 907.32 (23.78) 99.81
| 149
NOTES
March 31, 2019 March 31, 2019
Depreciation 10.71 0.04 2.38 -
Impairment allowance for financial assets 318.50 - (253.36) -
Fair value of financial instruments held for - 43.68 174.36 (0.01)
trading
Remeasurement gain / (loss) on defined benefit 60.10 - 9.84 (1.72)
plan
interest
Gain / loss on equity instrument designated at 126.57 - - (2.44)
FVOCI
Derivative instruments in Cash flow hedge 68.71 - - 9.41
relationship
Disallowance under section 35DD of the 0.01 - (0.01) -
Income Tax Act,1961
Impact on Loans using Effective Rate of Interest 78.48 - (78.76) -
Difference between accounting income and - 0.97 (0.47) -
taxable income on investments
Provision for bad debts under section 36(1) - 5.48 2.22 -
(viia) of the Income Tax Act,1961
Share based payments 38.91 - - -
Impact on account of EIS and Servicing assets/ - 450.85 (235.20) -
liability
Total 701.99 587.62 (353.49) 5.24
(33) Explanatory Notes
(i) Redeemable Non Convertible Debentures(payable at par unless otherwise stated)(Secured unless otherwise stated)
include:*
As at
March 31, 2020
9.10 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on 699.55
January 15, 2029
November 22, 2028
8.75% Redeemable Non convertible Debentures of Face value Rs. 1000 each Redeemable on 0.06
September 25, 2028
September 25, 2028
September 25, 2028
September 25, 2028
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on 1,023.99
August 4, 2028
February 23, 2028
February 22, 2028
150 |
NOTES
As at
March 31, 2020
September 8, 2027
8.65 % Redeemable Non convertible Debentures of Face value Rs. 1,000 each Redeemable on 13.48
September 26, 2026
September 26, 2026
September 26, 2026
September 26, 2026(1)
July 22, 2026
June 30, 2026
June 5, 2026
May 29, 2026
May 8, 2026
April 29, 2026
April 11, 2026
March 13, 2026
February 7, 2026
December 31, 2025
December 30, 2025
November 20, 2025
June 26, 2025
May 19, 2025
January 24, 2025
December 31, 2024
December 16, 2024
June 30, 2024
| 151
NOTES
As at
March 31, 2020
June 5, 2024
December 24, 2023
November 21, 2023
October 8, 2023
September 25, 2023
September 25, 2023
September 25, 2023
August 29, 2023
July 28, 2023
9.05% Redeemable Non convertible Debentures of Face value Rs.1,000,000 each Redeemable on 39.72
July 07, 2023
June 5, 2023
May 30, 2023
March 25, 2023
March 19, 2023
February 26, 2023
January 16, 2023
November 19, 2022
November 7, 2022
November 6, 2022
July 25, 2022
July 6, 2022
June 28, 2022
6.38 % Redeemable Non convertible Debentures of Face value $. 1,000 each Redeemable on May 2,622.78
28, 2022
152 |
NOTES
As at
March 31, 2020
April 6, 2022
April 3, 2022
March 30, 2022
March 22, 2022
March 21, 2022
February 27, 2022
December 31, 2021
November 22, 2021
October 22, 2021
8.75 % Redeemable Non convertible Debentures of Face value Rs. 1,000 each Redeemable on 2,857.34
September 26, 2021
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000 each Redeemable on 1,245.19
September 26, 2021
September 25, 2021
September 25, 2021
September 25, 2021
September 25, 2021
September 7, 2021
August 11, 2021
July 9, 2021
10.60% Redeemable Non convertible Debentures of Face value Rs.1,000,000 each Redeemable on -
June 29, 2021
June 22, 2021
June 15, 2021
June 7, 2021
| 153
NOTES
As at
March 31, 2020
May 29, 2021
May 21, 2021
May 10, 2021
April 12, 2021
April 8, 2021
April 8, 2021(1)
April 6, 2021
March 19, 2021
February 27, 2021
February 18, 2021
February 12, 2021(1)
February 8, 2021
January 19, 2021
January 7, 2021
December 30, 2020
November 20, 2020
September 25, 2020
September 25, 2020
September 22, 2020
September 18, 2020
September 4, 2020
August 13, 2020
August 7, 2020
154 |
NOTES
As at
March 31, 2020
8.75% Redeemable Non convertible Debentures of Face value Rs.1,000,000 each Redeemable on -
July 28, 2020
July 24, 2020
July 9, 2020
June 29, 2020(1)
June 11, 2020
June 11, 2020
June 1, 2020(1)
May 12, 2020(1)
May 5, 2020(1)
May 4, 2020(1)
April 30, 2020(1)
April 28, 2020(1)
April 20, 2020
32,617.01
(1) Redeemable at premium
*Redeemable Non-Convertible Debentures are secured against Immovable Property / Current Assets and pool of Current
and Future Loan Receivables of the Group (Including investments).
(i) Redeemable Non Convertible Debentures(payable at par unless otherwise stated)(Secured unless otherwise stated)
include:*
As at
March 31, 2019
January 15, 2029
November 22, 2028
September 25, 2028
September 25, 2028
September 25, 2028
September 25, 2028
| 155
NOTES
As at
March 31, 2019
August 4, 2028
February 23, 2028
February 22, 2028
February 21, 2028
September 8, 2027
September 26, 2026
September 26, 2026
September 26, 2026
September 26, 2026
July 22, 2026
June 30, 2026
June 5, 2026
May 29, 2026
May 8, 2026
April 29, 2026
April 11, 2026
March 13, 2026
February 7, 2026
December 31, 2025
December 30, 2025
November 20, 2025
June 26, 2025
May 19, 2025
156 |
NOTES
As at
March 31, 2019
January 24, 2025
December 31, 2024
December 16, 2024
June 30, 2024
June 5, 2024
January 25, 2024
December 24, 2023
November 21, 2023
October 8, 2023
September 25, 2023
September 25, 2023
September 25, 2023
August 29, 2023
July 28, 2023
July 07, 2023
June 5, 2023
May 30, 2023
March 25, 2023
March 19, 2023
February 26, 2023
January 25, 2023
January 16, 2023
December 31, 2022
| 157
NOTES
As at
March 31, 2019
December 29, 2022
December 18, 2022
November 20, 2022
November 19, 2022
November 7, 2022
November 6, 2022
July 25, 2022
July 6, 2022
June 28, 2022
June 10, 2022
April 28, 2022
April 6, 2022
April 3, 2022
March 30, 2022
March 22, 2022
March 21, 2022
February 27, 2022
January 25, 2022
December 31, 2021
December 29, 2021(1)
November 22, 2021
October 22, 2021
September 26, 2021
158 |
NOTES
As at
March 31, 2019
September 26, 2021
September 26, 2021
September 25, 2021
September 25, 2021
September 25, 2021
September 25, 2021
September 7, 2021
August 11, 2021
July 9, 2021
June 29, 2021
June 22, 2021
June 15, 2021
June 7, 2021
May 29, 2021
May 21, 2021
May 10, 2021
April 12, 2021
April 8, 2021
April 8, 2021(1)
April 6, 2021
March 19, 2021
February 27, 2021
February 18, 2021
| 159
NOTES
As at
March 31, 2019
February 12, 2021(1)
February 8, 2021
January 19, 2021
January 7, 2021
December 30, 2020
November 20, 2020
September 25, 2020
September 25, 2020
September 22, 2020
September 18, 2020
September 4, 2020
August 13, 2020
August 7, 2020
July 24, 2020
June 29, 2020(1)
June 15, 2020
June 11, 2020
June 11, 2020
June 1, 2020(1)
May 12, 2020(1)
May 5, 2020(1)
May 4, 2020(1)
April 30, 2020(1)
160 |
NOTES
As at
March 31, 2019
April 28, 2020(1)
April 20, 2020
March 30, 2020
March 27, 2020
March 27, 2020
March 26, 2020(1)
March 13, 2020(1)
March 13, 2020
March 2, 2020
February 28, 2020
February 21, 2020
January 24, 2020(1)
December 31, 2019
December 8, 2019
December 2, 2019(1)
November 27, 2019(1)
November 14, 2019
November 4, 2019
October 30, 2019
October 15, 2019
October 13, 2019
September 29, 2019
September 26, 2019
| 161
NOTES
As at
March 31, 2019
September 26, 2019
September 26, 2019
September 26, 2019
September 20, 2019
September 19, 2019
September 12, 2019
August 30, 2019
August 22, 2019
August 9, 2019
July 15, 2019
June 28, 2019
June 27, 2019
June 21, 2019
June 17, 2019
June 14, 2019
June 11, 2019(1)
May 27, 2019
April 15, 2019(1)
April 12, 2019
44,065.61
(1)
Redeemable at premium
*Redeemable Non-Convertible Debentures are secured against Immovable Property / Current Assets
and pool of Current and Future Loan Receivables of the Group (Including investments).
162 |
NOTES
(ii) Term Loan from banks includes as at March 31, 2020*:
As at
March 31, 2020
Term Loan taken from Bank. This loans is repayable in quarterly installment with moratorium period of 62.48
9 month from the date of disbursement. The balance tenure for this loan is 6 months from the Balance
Sheet.(1)
Term Loan taken from Bank. This loan is repayable in half yearly installment after the moratorium 999.90
of 3 years from the date of disbursement. The balance tenure for this loan is 34 months from the
Balance Sheet.(1)
Term Loan taken from Bank. This loan is Repayable in equal installments at the 49th , 61th and 72th 128.08
month from the date of the first drawdown. The balance tenure for this loan is 7 months from the
Balance Sheet.(2) & (3)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium 1,421.78
period of 1 years from the date of disbursement. These loans are secured by hypothecation of loan
receivables of the company. The balance tenure for these loans are 17 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium 1,248.37
period of 6 month from the date of disbursement. The balance tenure for these loans are 54 months
(average) from the Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in yearly installment with the moratorium 3,897.54
period of 2 years from the date of disbursement. The balance tenure for these loans are 21 months
Term Loan taken from Bank(s). These loans are repayable in bullet at the end of the tenure from the 5,336.26
date of disbursement. The balance tenure for these loans are 19 months (average) from the Balance
Sheet.(2) & (3)
Term Loan taken from Bank(s).These loans are repayable in yearly installment after the moratorium 1,049.97
Term Loan taken from Bank. This loan is repayable in monthly installment from the date of 16.67
disbursement. The balance tenure for this loan is 24 months from the Balance Sheet.(1)
Term Loan taken from Bank. This loans is repayable in quarterly installment from the date of 19.78
Term Loan taken from Bank(s). These loans are repayable in half yearly installment from the date of 740.12
disbursement. The balance tenure for these loan are 15 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable in yearly installment with the moratorium period of 399.96
4 years from the date of disbursement. The balance tenure for this loan is 66 months from the Balance
Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in yearly installment with the moratorium 5,223.48
period of 3 years from the date of disbursement. The balance tenure for these loan are 24 months
Term Loan taken from Bank(s).These loans are repayable in half yearly installment with the 3,273.71
moratorium period of 1 years from the date of disbursement. The balance tenure for these loan are
27 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank. This loans is repayable in half yearly installment with the moratorium 1,049.00
period of 1.5 years from the date of disbursement. The balance tenure for this loan is 15 months from
the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable at the end of 24 months,30th Months and 35th 50.00
month from the date of disbursement. The balance tenure for this loan is 5 months from the Balance
Sheet.(1)
| 163
NOTES
As at
March 31, 2020
Term Loan taken from Bank. This loan is repayable in half yearly installment after the moratorium of 50.00
Sheet.(1)
Term Loan taken from Bank(s). These loan are repayable in bullet at the end of the tenure. The 1,468.97
balance tenure for these loan are 3 days from the Balance Sheet.(1)
Term Loan taken from Bank(s), These loans are repayable in Monthly installment from the date of 123.98
disbursement. The average balance tenure for these loans are 18 months from the Balance Sheet
date.
Term Loan taken from Bank. These loans are repayable in half yearly installment with moratorium 6.00
from the Balance Sheet date.
Term Loans taken from financial institution. These loans are repayable in half yearly instalments. The 1,545.50
average balance tenure for these loans are 49 months from the Balance Sheet date.
Term Loan taken from Bank. This loan is repayable in quarterly instalments with moratorium period 74.98
of 1 year from the date of disbursement. The balance tenure for this loan is 6 months from the
Balance Sheet date.
Term Loan taken from Bank. This loan is repayable in quarterly instalments with moratorium period 373.63
of 3 month from the date of disbursement. The balance tenure for this loan is 39 months from the
Balance Sheet date.
Term Loan taken from Banks. These loans are repayable in quarterly instalments from the date of 64.79
disbursement. The average balance tenure for these loans are 13 months from the Balance Sheet
date.
Term Loan taken from Banks. These loans are repayable in yearly instalments with the moratorium 979.87
period of 3 years from the date of disbursement. The average balance tenure for these loans are 31
months from the Balance Sheet date.
Term Loan taken from Banks. These loans are repayable in yearly instalments with the moratorium 1,866.48
period of 2 years from the date of disbursement. The average balance tenure for these loans are 27
months from the Balance Sheet date.
Term Loan taken from Bank(s), These loans are repayable in quarterly installment with moratorium 297.84
period of 6 months from the date of disbursement. The average balance tenure for these loans are
84 months from the Balance Sheet date.
Term Loan taken from Other, This loan is repayable within 36 months from the date of disbursement 259.70
of loan.
32,028.84
(1)
Linked to base rate / MCLR of respective lenders
(2) Linked to Libor
(3) Includes External commercial borrowings from banks.
*Secured by hypothecation of Loan Receivables(Current and Future) / Current Assets / Cash and
Cash Equivalents of the Group (including investments).
164 |
NOTES
As at
March 31, 2019
period of 9 month from the date of disbursement. The balance tenure for these loans are 18 months
from the Balance Sheet.(1)
Term Loan taken from Bank, This loans is repayable in half yearly installment after the moratorium of 999.86
Sheet.(1)
Term Loan taken from Bank. This loan is Repayable in equal installments at the 49th, 61th and 72th 228.34
month from the date of the first drawdown. The balance tenure for this loan is 19 months from the
Term Loan taken from Bank(s), These loans are repayable in quarterly installment with moratorium 2,068.49
period of 1 years from the date of disbursement. These loans are secured by hypothecation of loan
receivables of the Group. The balance tenure for these loans are 29 months (average) from the
Balance Sheet.(1)
period of 6 month from the date of disbursement. The balance tenure for these loan is 47 months
Term Loan taken from Bank(s), These loans are repayable in yearly installment with the moratorium 6,179.36
Term Loan of taken from Bank(s), These loans are repayable in bullet at the end of the tenure from 1,907.25
the date of disbursement. The balance tenure for these loans are 6 months (average) from the
Balance Sheet.(1)
Term Loan of taken from Bank(s), These loans are repayable in bullet at the end of the tenure from 4,987.63
the date of disbursement. The balance tenure for these loans are 28 months (average) from the
Term Loan taken from Bank(s), These loans are repayable in yearly installment after the moratorium 1,349.91
Term Loan taken from Bank, This loan is repayable in monthly installment from the date of 25.00
disbursement. The balance tenure for this loan is 37 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank(s), These loans are repayable in quarterly installment from the date of 350.94
disbursement. The balance tenure for these loans are 10 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank(s), These loans are repayable in half yearly installment from the date of 1,573.37
Term Loan taken from Bank. This loan is repayable in yearly installment with the moratorium period of 399.95
Sheet.(1)
Term Loan taken from Bank(s), These loans are repayable in half yearly installment with the 4,040.93
moratorium period of 1 years from the date of disbursement. The balance tenure for these loans are
38 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank(s), These loans are repayable in half yearly installment with the 1,648.19
moratorium period of 1.5 years from the date of disbursement. The balance tenure for these loans
are 15 months (average) from the Balance Sheet.(1)
| 165
NOTES
As at
March 31, 2019
Term Loan taken from Bank. This loan is repayable at the end of 24 months,30th Months and 35th 149.99
month from the date of disbursement. The balance tenure for this loan is 17 months from the
Balance Sheet.(1)
Term Loan taken from Bank, The loans is repayable at the end of 24 months and 35th month from 499.99
the date of disbursement. The balance tenure for this loan is 10 months from the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable in half yearly installment after the moratorium 99.99
of 2 years from the date of disbursement. The balance tenure for this loan is 20 months from the
Balance Sheet.(1)
Term Loan taken from Bank(s). These loan are repayable in bullet at the end of the tenure. The 1,462.92
balance tenure for this loan is 7 days from the Balance Sheet.
Term Loan taken from Bank(s), These loans are repayable in bullet at the end of the tenure from the 54.83
date of disbursement. The balance tenure for this loan is 15 months from the Balance Sheet date.
Term Loan taken from Bank(s), These loans are repayable in half yearly installment with moratorium 99.99
period of 2 years from the date of disbursement. The balance tenure for this loan is 21 months from
the Balance Sheet date.
Term Loan taken from Bank(s), These loans are repayable on 31st January and 31st July till the date 1,940.00
of payment from the date of disbursement. The balance tenure for this loan is 61 months from the
Balance Sheet date.
period of 1 year from the date of disbursement. The balance tenure for this loan is 18 months from
period of 3 month from the date of disbursement. The balance tenure for this loan is 51 months from
Term Loan taken from Bank(s), These loans are repayable in quarterly installment from the date of 89.71
disbursement. The balance tenure for this loan is 26 months from the Balance Sheet date.
Term Loan taken from Bank(s), These loans are repayable in yearly installment with the moratorium 979.82
41,023.39
(1)
(2) Linked to Libor
*Secured by hypothecation of Loan Receivables (Current and Future) / Current Assets / Cash and
Cash Equivalents of the Group (including investments).
166 |
NOTES
(iii) Subordinated Debt
As at
March 31, 2020
8.80% Subordinated Debt of Face value of Rs.100,000 each Redeemable on May 2, 2028 96.92
8.85% Subordinated Debt of Face value of Rs.100,000 each Redeemable on March 28, 2028 4.46
8.85% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on March 28, 2028 100.00
8.80% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on March 27, 2028 1,462.72
8.45% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on January 05, 2028 49.96
8.45% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on November 30, 2027 39.00
8.35% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on September 8, 2027 886.07
10.65% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on June 30, 2027 47.58
0.00% Subordinated Debt of Face value of Rs. 1,000 each Redeemable on September 26, 2026(1) 1.27
10.00% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on August 3, 2025 163.24
10.10% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on July 21, 2025 8.14
10.80% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on December 23, 2023 19.57
10.85% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on October 24, 2023 4.94
9.80% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on May 23, 2023 19.50
10.10% Subordinated Debt of Face value of Rs. 100,000 each Redeemable on February 18, 2023 24.39
| 167
NOTES
As at
March 31, 2020
4,587.46
As at
March 31, 2019
8.80% Subordinated Debt of Face value of Rs.100,000 each Redeemable on May 2, 2028 96.67
168 |
NOTES
As at
March 31, 2019
4,573.34
(iv) Disclosure of investing and financing activity that do not require cash and cash equivalent*:

March 31, 2020 March 31, 2019
Property, plant and equipment and intangible assets 50.99 43.90
Investments in subsidiaries and other long-term Investments 13,057.93 (4,811.23)
Right-of-use assets (253.29) -
Equity share capital including securities premium (22.38) 5.78
Borrowings** 264.83 (0.01)
* Includes non cash movements such as effective interest rate on borrowings and investment, fair value adjustment on
investment etc.
** Represents debt securities, borrowings (other than debt securities) and subordinated liabilities.
(v) During the year, the Group has bought back non-convertible debenture having face value of Rs. 8,316.73 crores, thereby
earning a profit of Rs. 320.83 Crores which is clubbed under net gain on derecognition of financial instruments under
amortised cost category.
(vi) The Citizens Whistle Blower Forum has filed a Public Interest Litigation (“PIL”) before the Delhi High Court wherein certain
allegations have been made against the Indiabulls group. The Company has vehemently denied the frivolous allegations
that have been made without basic research or inquiry. The company has also filed a perjury application wherein notice has
been issued. The Management has concluded that the allegations made in the Writ Petition has no merit and no impact on
the financial statements. The matter is sub judice and pending with the Delhi High Court.
(34) Contingent Liability and Commitments:
(a) Demand pending u/s 143(3) of the Income Tax Act,1961
(i) For Rs. 0.82 Crore with respect to FY 2007-08 (Previous Year Rs. 0.82 Crore) against disallowances under Income Tax
Act,1961 and treating capital gain as business income, against which appeal is pending before Hon’ble Jurisdictional
High Court.
(ii) For Rs. 1.17 Crores with respect to FY 2007-08 (Previous Year Rs. 3.64 Crores) against disallowances under Income
Tax Act,1961 against which appeal is pending before CIT (Appeal).
(iii) For Rs. 1.23 Crores with respect to FY 2008-09 (Previous Year Rs. 1.23 Crores) against disallowances under Income
Tax Act,1961, against which the appeal is pending before Supreme Court.
(iv) For Rs. 1.27 Crores with respect to FY 2010-11 (Previous Year Rs. 1.27 Crores) against disallowances under Income
Tax Act, 1961, against which the department has filed appeal before the High Court.
| 169
NOTES
(v) For Rs. 0.05 Crore with respect to FY 2010-11 (Previous Year Rs. 0.05 Crore) against disallowances under Income Tax
Act,1961 against which appeal is pending before CIT (Appeal).
(vi) For Rs. 0.05 Crore with respect to FY 2010-11 (Previous Year Rs. 0.05 Crore) against disallowances under Income Tax
(vii) For Rs. 1.75 Crores with respect to FY 2011-12 (Previous Year Rs. 1.75 Crores) against disallowances under Income
Tax Act,1961,against which the appeal is pending before High Court.
(viii) For Rs. 0.00 Crore with respect to FY 2011-12 (Previous Year Rs. 0.00 Crore) against disallowances under Income Tax
(ix) For Rs. 12.03 Crores with respect to FY 2011-12 (Previous Year Rs. 12.03 Crores) against disallowances under Income
(x) For Rs. 0.11 Crore with respect to FY 2012-13 (Previous Year Rs. 0.19 Crore) against disallowances under Income Tax
(xi) For Rs. 14.16 Crores with respect to FY 2013-14 (Previous Year Rs. 14.16 Crores) against disallowances under Income
(xii) For Rs. 13.81 Crores with respect to FY 2014-15 (Previous Year Rs. 13.81 Crores) against disallowances under Income
(xiii) For Rs 20.54 Crores with respect to FY 2015-16 (Previous Year Rs. 20.54 Crores) against disallowances under Income
(xiv) For Rs. 48.66 Crores with respect to FY 2016-17 (Previous Year Rs. 48.66 Crores) against disallowances under Income
(b) Demand pending u/s of 25, 55 , 56 & 61 of The Rajasthan Value Added Tax Act, 2003 for Rs. 1.45 Crore (Including interest &
Penalty) with respect to FY 2007-08 to FY 2012-13 (Previous Year Rs. 1.45 Crore) against which appeal was pending before
Rajasthan High Court. The Company has paid tax along with interest for Rs. 0.62 Crore (Previous Year Rs. 0.62 Crore) under
protest. Further the company has deposited Rs. 0.21 Crore on May 30, 2016. Further ,the company has opted for New
Amnesty Scheme 2016 and accordingly deposited 25 % of the disputed demand amount and withdrawn appeal before the
Hon’ble High Court.
(c) Contingent liability with respect to Security deposit to the Bombay Stock Exchange (Representing 1% of the public issue
amount i.e Rs. 2,000.00 Crores) against which security deposit provided by the company to the exchange is Rs. 3.00 Crores
and the balance is in the form of a bank guarantee).
(d) Corporate counter guarantees outstanding in respect of assignment agreements entered by the Company with different
assignees as at March 31, 2020 is Rs. Nil (Previous Year Rs. 40.02 Crores) against which collateral deposit of Rs. Nil (Previous
Year Rs. 6.44 Crores) for the year ended March 31, 2020 is being provided to the assignees by the Company in the form of
Fixed Deposit Receipts. The Company does not anticipate any losses on account of the said corporate guarantees, in the
event of the rights under guarantee being exercised by the assignees.
(e) The Company in the ordinary course of business, has various cases pending in different courts, however, the management
does not expect any unfavourable outcome resulting in material adverse effect on the financial position of the Company.
(f) Capital commitments for acquisition of fixed assets at various branches as at the year end (net of capital advances paid)
Rs. 32.32 Crores (Previous Year Rs. 19.16 Crores).
(g) Corporate guarantees provided to Unique Identification Authority of India for Aadhaar verification of loan applications for
Rs. 0.25 Crore (Previous Year Rs. 0.25 Crore).
(h) Bank guarantees provided against court case for Rs. 0.05 Crore (Previous Year Rs. 0.03 Crore).
(35) Segment Reporting:
The Group’s main business is financing by way of loans for purchase or construction of residential houses, commercial real estate
and certain other purposes in India. All other activities of the Group revolve around the main business. Accordingly, there are no
separate reportable segments as per IND-AS 108 dealing with Operating Segment.
170 |
NOTES
(36) Disclosures in respect of Related Parties as per Indian Accounting Standard (IndAS) – 24 ‘Related Party Disclosures’.
(a) Detail of related party
Nature of relationship Related party

Associate Company OakNorth Holdings Limited
(Previously known as Acorn OakNorth Holdings Limited) (till March 30, 2020)
Key Management Personnel Mr. Sameer Gehlaut, Chairman & Executive Director
Mr. Gagan Banga, Vice Chairman/ Managing Director & CEO
Mr. Ashwini Omprakash Kumar, Deputy Managing Director
Mr. Ajit Kumar Mittal, Executive Director
Mr. Sachin Chaudhary, Executive Director
Dr K.C Chakrabarty, Independent Director (till October 26, 2019)
Mrs. Manjari Kacker, Non Executive Director (till September 19, 2018)
Justice Bhisheshwar Prasad Singh, Independent Director (till March 31, 2019)
Mr. Shamsher Singh Ahlawat, Independent Director
Mr. Prem Prakash Mirdha, Independent Director
Brig. Labh Singh Sitara, Independent Director (till March 31, 2019)
Justice Gyan Sudha Misra, Independent Director
Mr. Subhash Sheoratan Mundra, Independent Director
Mr. Satish Chand Mathur, Independent Director (from March 8, 2019)
(b) Significant transactions with related parties:
Nature of Transactions Year ended Year ended

March 31, 2020 March 31, 2019
Finance
Other receipts and payments
Issue of Equity Shares Under ESOP Schemes (Based on the Exercise price)
- Key Management Personnel 0.12 11.07
Total 0.12 11.07
Salary / Remuneration (Consolidated)
Total 58.72 87.99
Salary / Remuneration(Short-term employee benefits)
Total 35.83 58.54
Salary / Remuneration(Share-based payments)
Total 6.45 16.26
Salary / Remuneration(Post-employment benefits)
Total 16.12 12.94
Salary / Remuneration (Others)
Total 0.32 0.25
| 171
NOTES
(c) Outstanding balance:

March 31, 2020 March 31, 2019
Nil
(d) Statement of Partywise transactions during the Year:

March 31, 2020 March 31, 2019
Directors
– Gagan Banga - 9.62
– Ajit Kumar Mittal - 0.18
– Sachin Chaudhary 0.12 1.27
Total 0.12 11.07
Salary / Remuneration (Short-term employee benefits)
Remuneration to Directors
– Sameer Gehlaut 12.51 25.02
– Gagan Banga 11.04 15.83
– Ajit Kumar Mittal 2.09 3.67
– Ashwini Omprakash Kumar 5.12 7.23
– K C Chakraborty 0.38 1.52
Total 35.83 58.54
Salary / Remuneration (Share-based payments)
Total 6.45 16.26

March 31, 2020 March 31, 2019
Salary / Remuneration (Post-employment benefits)
– Ajit Kumar Mittal (0.01) 0.02
Total 16.12 12.94

March 31, 2020 March 31, 2019
– Manjari Kacker - 0.02
– Justice Bhisheshwar Prasad Singh - 0.05
– Shamsher Singh Ahlawat 0.08 0.04
– Prem Prakash Mirdha - 0.05
– Labh Singh Sitara 0.05 0.04
– Justice Gyan Sudha Misra 0.06 0.04
– Subhash Sheoratan Mundra - 0.01
– Satish Chand Mathur 0.07 -
– Subhash S Mundra 0.06 -
Total 0.32 0.25
172 |
NOTES
(37)(a) The consolidated financial statements include the financial statements of Group and its subsidiaries. Indiabulls Housing
Finance Limited is the ultimate parent of the Group.
Significant subsidiaries of Group are:
Name of Subsidiary Country of % equity interest % equity interest

incorporation March 31, 2020 March 31, 2019
1. Indiabulls Collection Agency Limited India 100% 100%
2. Ibulls Sales Limited India 100% 100%
3. Indiabulls Insurance Advisors Limited India 100% 100%
4. Nilgiri Financial Consultants Limited India 100% 100%
5. Indiabulls Capital Services Limited India 100% 100%
6. Indiabulls Commercial Credit Limited (formerly known as India 100% 100%
Indiabulls Infrastructure Credit Limited)
7. Indiabulls Advisory Services Limited India 100% 100%
8. Indiabulls Asset Holding Company Limited India 100% 100%
9. Indiabulls Asset Management Company Limited India 100% 100%
10. Indiabulls Trustee Company Limited India 100% 100%
11. Indiabulls Holdings Limited India 100% 100%
12. Indiabulls Venture Capital Management Company Limited India 100% 100%
13. Indiabulls Asset Management Mauritius Mauritius 100% 100%
The Company has given Corporate counter guarantees of Rs. 1,545.50 Crore (Previous Year Rs. 2,015.00 Crore) to third parties
on behalf of its wholly owned subsidiary namely Indiabulls Commercial Credit Limited to avail Loan facilities from Financial
Institutions.
Investment in Associate
The Company had 15.71% interest and a right to board seat in OakNorth Holdings Limited (Formerly known as Acorn OakNorth
Holdings Limited). OakNorth Bank- a licensed UK commercial bank is a wholly owned subsidiary of OakNorth Holdings Limited. The
Group’s interest in OakNorth Holdings Limited was accounted for using the equity method in the consolidated financial statements.
The shareholding of the Company in OakNorth Holdings Limited had reduced below 15% on a fully diluted basis during the
FY 2019-20 and the Company also relinquished its Board seat w.e.f. March 31, 2020 which has resulted in a loss of significant
influence and therefore OakNorth Holdings Limited ceases to be an Associate w.e.f. March 31, 2020.
Below is the summarised financial information of the Company’s investment in OakNorth Holdings Limited.

March 31, 2020 March 31, 2019
Amount
Profit or loss from continuing operations 33.88 32.74
Post-tax profit or loss from discontinued operations - -
Other comprehensive income 0.28 0.50
Total comprehensive income 34.16 33.24
| 173
(37) (b) Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
174 |
Net assets .i.e. total assets minus total liabilities Share in profit or loss Share in other comprehensive income Share in total comprehensive income
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
As % of Amount As % of Amount As % of Amount As % of Amount As % of Amount As % of Amount As % of total Amount As % of total Amount
Name of the entity in the Group consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in comprehensive (Rs. in comprehensive (Rs. in
NOTES
net assets Crores) net assets Crores) profit or Crores) profit or Crores) other Crores) other Crores) income Crores) income Crores)
loss loss comprehensive comprehensive
income income
Parent
Indiabulls Housing Finance Limited 62.52% 9,677.61 63.09% 10,362.81 82.37% 1,811.97 86.69% 3,546.07 100.00% (2,033.44) 451.12% (24.09) -133.19% (221.47) 86.21% 3,521.98
Subsidiaries
Indian
1. Indiabulls Collection Agency 0.14% 22.34 0.13% 21.40 0.04% 0.94 0.03% 1.06 0.00% - 0.00% - 0.57% 0.94 0.03% 1.06
Limited
2. Ibulls Sales Limited 0.07% 10.77 0.07% 11.28 -0.02% (0.49) 0.62% 25.46 0.00% (0.02) 0.19% (0.01) -0.31% (0.51) 0.62% 25.45
3. Indiabulls Insurance Advisors 0.03% 5.41 0.03% 5.25 0.01% 0.16 0.01% 0.25 0.00% - 0.00% - 0.10% 0.16 0.01% 0.25
Limited
4. Nilgiri Financial Consultants 0.14% 22.14 0.10% 16.96 0.24% 5.18 0.04% 1.46 0.00% - 0.00% - 3.12% 5.18 0.04% 1.46
Limited
5. Indiabulls Capital Services 0.08% 13.12 0.07% 11.16 0.09% 1.95 0.00% 0.19 0.00% - 0.00% - 1.17% 1.95 0.00% 0.19
Limited
6. Indiabulls Commercial Credit 37.37% 5,785.03 32.45% 5,328.96 15.13% 332.85 11.74% 480.30 0.00% (0.05) -331.09% 17.68 200.14% 332.80 12.19% 497.98
Limited (formerly known as
Indiabulls Infrastructure Credit
Limited)
7. Indiabulls Advisory Services 0.05% 7.45 0.04% 6.87 0.00% 0.10 0.00% 0.20 0.00% - 0.00% - 0.06% 0.10 0.00% 0.20
Limited
8. Indiabulls Asset Holding 0.00% 0.05 0.00% 0.05 0.00% (0.01) 0.00% - 0.00% - 0.00% - -0.01% (0.01) 0.00% -
Company Limited
9. ICCL Lender Repayment Trust 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -
10. Indiabulls Asset Management 1.27% 196.62 1.07% 175.51 0.95% 20.98 0.07% 3.05 -0.01% 0.12 -4.12% 0.22 12.69% 21.10 0.08% 3.27
Company Limited
11. Indiabulls Trustee Company 0.00% 0.50 0.00% 0.54 0.00% (0.03) 0.00% 0.06 0.00% - 0.00% - -0.02% (0.03) 0.00% 0.06
Limited
12. Indiabulls Holdings Limited 0.00% 0.05 0.00% 0.06 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% -
13. Indiabulls Venture Capital 0.00% 0.04 0.00% 0.06 0.00% (0.02) 0.00% - 0.00% - 0.00% - -0.01% (0.02) 0.00% -
Management Company Limited
14. Indiabulls Asset Management 0.00% 0.24 0.00% 0.42 -0.03% (0.75) -0.01% (0.31) 0.00% - 0.00% - -0.45% (0.75) -0.01% (0.31)
Mauritius
15. IBHFL Lender Repayment Trust 0.00% - 0.00% 0.40 0.00% - 0.00% - 0.02% (0.41) -6.74% 0.36 -0.25% (0.41) 0.01% 0.36
16. Indiabulls Housing Finance -1.69% (261.55) 0.00% - -0.31% (6.91) 0.00% - 0.00% - 0.00% - -4.16% (6.91) 0.00% -
Limited - Employees Welfare Trust
Associate (Investment as per
Equity Method)
Foreign
1. OakNorth Holdings Limited(till 0.00% - 2.94% 482.56 1.54% 33.88 0.80% 32.74 -0.01% 0.28 -9.36% 0.50 20.54% 34.16 0.81% 33.24
March 30, 2020)
Total 100.00% 15,479.82 100.00% 16,424.29 100.00% 2,199.80 100.00% 4,090.53 100.00% (2,033.52) 100.00% (5.34) 100.00% 166.28 100.00% 4,085.19
NOTES
(38) Earnings Per Equity Share
Earnings Per Equity Share (EPS) as per Indian Accounting Standard (IndAS)-33 “Earnings Per Share”,:
The basic earnings per share is computed by dividing the net profit attributable to Equity Shareholders for the year by the weighted
average number of Equity Shares outstanding during the year. Diluted earnings per share are computed using the weighted
average number of Equity Shares and also the weighted average number of Equity Shares that could have been issued on the
conversion of all dilutive potential Equity Shares. The dilutive potential Equity Shares are adjusted for the proceeds receivable,
had the shares been actually issued at fair value.
Dilutive potential Equity Shares are deemed converted as of the beginning of the year, unless they have been issued at a later
date. The number of Equity Shares and potential diluted Equity Shares are adjusted for potential dilutive effect of Employee Stock
Option Plan as appropriate.

March 31, 2020 March 31, 2019
Profit available for Equity Shareholders (Rs.) 2,199.80 4,090.53
Weighted average number of Shares used in computing Basic Earnings per Equity Share 425,455,242 426,849,544
(Nos.)
Add: Potential number of Equity share that could arise on exercise of Employee Stock 89,074 2,539,129
Options (Nos.)
Weighted average number of shares used in computing Diluted Earnings per Equity 425,544,315 429,388,673
Share (Nos.)
Face Value of Equity Shares - (Rs.) 2.00 2.00
Basic Earnings Per Equity Share - (Rs.) 51.70 95.83
Diluted Earnings Per Equity Share - (Rs.) 51.69 95.26
(39) Fair value measurement
39.1 Valuation principles
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 , 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.
39.2 Valuation governance
The Group’s process to determine fair values is part of its periodic financial close process. The Audit Committee exercises
the overall supervision over the methodology and models to determine the fair value as part of its overall monitoring
of financial close process and controls. The responsibility of ongoing measurement resides with business units . Once
submitted, fair value estimates are also reviewed and challenged by the Risk and Finance functions.
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39.3 Assets and liabilities by fair value hierarchy
The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:
Level 1 Level 2 Level 3 Total
Assets measured at fair value on a recurring basis

Derivative financial instruments
Forward contracts - 238.36 - 238.36
Interest rate swaps - 6.45 - 6.45
Currency swaps - 468.56 - 468.56
Currency options - 25.81 - 25.81
Total derivative financial instruments - 739.18 - 739.18
Financial investment measured at FVTPL
Government Debt Securities - - - -
Debt Securities - 3,086.25 - 3,086.25
Mutual Funds - 4,650.80 - 4,650.80
Commercial Papers - 98.57 - 98.57
Total Financial investment measured at FVTPL - 8,574.80 - 8,574.80
Financial investments measured at FVOCI
Equities - 2,900.69 - 2,900.69
Total Financial investments measured at FVOCI - 2,900.69 - 2,900.69
Total assets measured at fair value on a recurring - 11,475.49 - 11,475.49
basis
Liabilities measured at fair value on a recurring basis
Forward contracts - - - -
Currency swaps - - - -
176 |
NOTES

Amount
Debt Securities - 9,114.86 - 9,114.86
Mutual Funds - 7,498.90 - 7,498.90
Total Financial investment measured at FVTPL - 16,994.24 - 16,994.24
Equities - 14.35 - 14.35
Total Financial investments measured at FVOCI - 14.35 - 14.35
basis
39.4 Valuation techniques

Government debt securities
Government securities are financial instruments issued by Central and State Governments. Fair value of these instruments
is derived based on the indicative quotes of price and are classified under level 2.
Debenture and Bonds, Commercial Papers, Certificate of Deposits
Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at
reporting date and are classified as Level 2.
Equity instruments
Equity instruments in non-listed entities are initially recognised at transaction price and re-measured and valued on a case-
by-case and classified as Level 2. Fair value is the price of recent transaction as there has not been a significant lapse of time
since the last transaction took place.
Mutual Funds
Open ended mutual funds are valued at NAV declared by respective fund house and are classified under Level 2.
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NOTES
Interest rate swaps, Currency swaps and Forward rate contracts
The fair value of Interest rate swaps is calculated as the present value of estimated cash flows based on observable yield
curves. The fair value of Forward foreign exchange contracts and currency swaps is determined using observable foreign
exchange rates and yield curves at the balance sheet date.
39.5 There have been no transfers between Level 1, Level 2 and Level 3 for the year ended March 31, 2020 and March 31, 2019.
39.6 Fair value of financial instruments not measured at fair value
Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial instruments that
are not carried at fair value in the financial statements. This table does not include the fair values of non–financial assets
and non–financial liabilities.

Carrying Value Fair Value
Financial Assets:
Cash and cash equivalent 13,564.59 - - - *
Bank balances other than cash and cash 1,474.06 - - - *
equivalent
Trade Receivables 28.84 - - - *
Loans and advances: 70,211.44 - - - *
Investments – at amortised cost: 1,541.15 - 1,542.70 - 1,542.70
Other Financial assets: 1,420.83 - - - *
Total financial assets 88,240.91 - 1,542.70 - 1,542.70
Financial Liabilities:
Trade payables 11.70 - - - *
Debt securities 32,617.01 - 32,410.92 - 32,410.92
Borrowing other than debt securities 42,370.02 - - - *
Subordinated Liabilities 4,687.46 - 4,935.11 - 4,935.11
Other financial liability 6,573.18 - - - *
Total financial liabilities 86,259.37 - 37,346.04 - 37,346.04

Financial Assets:
Bank balances other than cash and cash 718.43 - - - *
equivalent
Debt securities 49,395.61 - 50,244.19 - 50,244.19
178 |
NOTES
39.7 Valuation methodologies of financial instruments not measured at fair value
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the Group’s financial statements. These fair values were calculated for
disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables
Debt Securities & Subordinated liabilities
These includes Subordinated debt, secured debentures, unsecured debentures. The fair values of such liabilities are
estimated using a discounted cash flow model based on contractual cash flows using actual or estimated yields and
discounting by yields incorporating the credit risk. These instrument are classified in Level 2.
Investments - at amortised cost
These includes Government Securities and Corporate Bonds which are held for maturity. Fair value of these instruments is
derived based on the indicative quotes of price and are classified under level 2.
*Assets and Liabilities other than above
The carrying value of assets and liabilities other than investments at amortised cost, debt securities and subordinated
liabilities represents a reasonable approximation of fair value.
(40) Transfers of financial assets
Transfers of financial assets that are not derecognised in their entirety
Securitisations: The Group uses securitisations as a source of finance. Such transaction resulted in the transfer of contractual cash
flows from portfolios of financial assets to holders of issued debt securities. Such deals resulted in continued recognition of the
securitised assets since the Group retains substantial risks and rewards.
The table below outlines the carrying amounts and fair values of all financial assets transferred that are not derecognised in their
entirety and associated liabilities.
March 31, 2020 March 31, 2019
Amount
Securitisations
Carrying amount of transferred assets measured at amortised cost 1,495.23 770.68
Carrying amount of associated liabilities (1,545.18) (768.35)
The carrying amount of above assets and liabilities is a reasonable approximation of
fair value
Transfers of financial assets that are derecognised in their entirety
The Group has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
Thus, Pre-transition securitisation deals continues to be de-recognised in their entirety.
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NOTES
The table below outlines details for each type of continued involvement relating to transferred assets derecognised in their
entirety.
Carrying amount of Fair value of continuing Maximum

continuing involvement involvement exposure to
in statement of financial loss
position
Balance with Liabilities Balance with Liabilities
banks banks
Type of continuing involvement
Securitisation
March 31, 2020 601.46 - 601.46 - 601.46
March 31, 2019 936.63 - 936.63 - 936.63
Assignment Deals
During the year ended 31st March 2020, the Group has sold some loans and advances measured at amortised cost as per
assignment deals, as a source of finance. As per the terms of deal, since the derecognition criteria as per IND AS 109, including
transfer of substantially all the risks and rewards relating to assets being transferred to the buyer being met, the assets have been
derecognised.
The management has evaluated the impact of the assignment transactions done during the year for its business model. Based on
the future business plans, the Group’s business model remains to hold the assets for collecting contractual cash flows.
The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain/
(loss) on derecognition, per type of asset.
Loans and advances measured at amortised cost For the year For the year
ended ended
March 31, 2020 March 31, 2019
Carrying amount of derecognised financial assets 19,354.83 22,574.86
Gain from derecognition 132.18 703.32
Since the group transferred the above financial asset in a transfer that qualified for derecognition in its entirety therefore the
whole of the interest spread ( over the expected life of the asset) is recognised on the date of derecognition itself as interest-only
strip receivable (“Receivables on assignment of loan”) and correspondingly recognised as profit on derecognition of financial
asset.
During the period ended 31st March 2020, the Group has sold some loans and advances measured at amortised cost as per
transfer of substantially all the risks and rewards relating to assets being transferred to the buyer not being met, the assets have
been re-recognised.
Loans and advances measured at amortised cost For the year For the year
ended ended
March 31, 2020 March 31, 2019
Carrying amount of transferred assets measured at amortised cost 1,794.08 -
Carrying amount of associated liabilities (1,843.96) -
The carrying amount of above assets and liabilities is a reasonable approximation of fair value.
Sale of Investments measured at amortised cost
The Group derecognised investment in bonds measured at Amortised cost having carrying value of Rs. 830.83 crore due to sale
of these investments, resulting in a loss of Rs. 28.38 crore. The sale of such Investments is infrequent and was made due to the
unanticipated funding needs and thus this sale does not impact the hold to collect objective of the Group and the asset portfolio
continues to be classified and measured at amortised cost.
180 |
NOTES
(41) Capital management-
For the purpose of the Group’s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders of the Group. The primary objective of the Group’s capital management is to maximise
the shareholder value. IBHFL monitors capital using a capital adequacy ratio as prescribed by the NHB guidelines and ICCL monitors
capital using a capital adequacy ratio as prescribed by the RBI guidelines.
(42) Risk Management
Introduction and risk profile
Indiabulls Housing Finance Ltd. (IBHFL) is a housing finance company in India and is regulated by the National Housing Bank
(NHB). In view of the intrinsic nature of operations, the company is exposed to a variety of risks, which can be broadly classified
as credit risk, market risk, liquidity risk and operational risk. It is also subject to various regulatory risks.
Risk management structure and policies
As a lending institution, Group is exposed to various risks that are related to lending business and operating environment. The
Principal Objective in Group ‘s risk management processes is to measure and monitor the various risks that Group is subject
to and to follow policies and procedures to address such risks. Group ‘s risk management framework is driven by Board and its
subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk Management Committee.
Group 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, conservative loan to value, and required term cover for insurance. The major types of risk Group
face in businesses are liquidity risk, credit risk, interest rate risk.
(A) Liquidity risk
Liquidity risk is the potential for loss to an entity arising from either its inability to meet its obligations or to fund increases
in assets as they fall due without incurring unacceptable cost or losses.
The Group manages liquidity risk by maintaining sufficient cash and cash equivalents (including marketable securities)
to meet its obligations at all times. It also ensures having access to funding through an adequate amount of committed
credit lines. The Group’s treasury department is responsible for liquidity and funding as well as settlement management. In
addition, processes and policies related to such risks are overseen by senior management and the management regularly
monitors the position of cash and cash equivalents vis-à-vis projections. Assessment of maturity profiles of financial assets
and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered
while reviewing the liquidity position.
The table below summarises the maturity profile of the undiscounted cash flows of the company’s financial liabilities. In
FY 2019-20 ‘Upto one month borrowings from banks and others’ includes repo borrowings of Rs. 1468.97 Crore (Previous
Year Rs. 1,462.92 Crore) with specific collateral of investments in government securities:
March 31, 2020 Upto One Over one 2 years to more than Total
month months to 2 5 years 5 years
years
Borrowings from Banks & Others 4,401.25 47,913.36 23,647.10 20,767.09 96,728.80
Lease liability recognised under Ind AS 116 5.79 126.84 137.81 70.45 340.88
Trade Payables - 11.70 - - 11.70
Amount payable on Assigned Loans 633.53 - - - 633.53
Other liabilities 292.43 76.05 5.37 - 373.85
Temporary Overdrawn Balances as per books 3,377.05 - - - 3,377.05
Unclaimed Dividends 4.67 - - - 4.67
Undrawn Loan Commitments - 2,274.56 - - 2,274.56
Servicing liability on assigned loans 4.96 86.42 57.63 9.82 158.83
8,719.68 50,488.93 23,847.91 20,847.36 103,903.88
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NOTES
March 31, 2019 Upto One Over one 2 years to more than Total
month months to 2 5 years 5 years
years
Borrowings from Banks & Others 3,258.68 64,200.91 41,586.41 20,072.84 129,118.84
Other liabilities 168.52 1.64 (0.02) - 170.14
Temporary Overdrawn Balances as per books 3,273.07 - - - 3,273.07
Derivatives 2.30 (111.29) 118.84 - 9.85
7,693.12 68,456.92 41,738.09 20,080.46 137,968.59
(B) Credit Risk
Credit Risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform
such obligation is impaired resulting in economic loss to the Group. IBHFL’s Credit Risk Management framework is
categorized into following main components:
- Board and senior management oversight
- Organization structure
- Systems and procedures for identification, acceptance, measurement, monitoring and controlling risks.
It is the overall responsibility of the board appointed Risk Management Committee to approve the Group’s credit risk
strategy and lending policies relating to credit risk and its management. The policies are based on the Group’s overall
business strategy and the same is reviewed periodically.
The Board of Directors constituted Risk Management Committee keeps an active watch on emerging risks the Group is
exposed to. The Risk Management Committee defines loan sanctioning authorities, including process of vetting by credit
committees for various types/values of loans. The RMC approves credit policies, reviews regulatory requirements, and also
periodically reviews large ticket loans and overdue accounts from this pool.
The Risk Management Committee approves the ‘Credit Authority Matrix’ that defines the credit approval hierarchy and the
approving authority for each group of approving managers/ committees in the hierarchy.
To maintain credit discipline and to enunciate credit risk management and control process there is a separate Risk
Management department independent of loan origination function. The Risk Management department performs
the function of Credit policy formulation, credit limit setting, monitoring of credit exceptions / exposures and review /
monitoring of documentation.
Derivative financial Instruments
Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as recorded
on the balance sheet. With gross–settled derivatives, the Group is also exposed to a settlement risk, being the risk that the
Group honours its obligation, but the counterparty fails to deliver the counter value.
Analysis of risk concentration
The Group’s concentrations of risk for loans are managed by counterparty and type of loan (i.e. Housing and Non-Housing
as defined by NHB). Housing and Non housing loans are given to both individual and corporate borrowers. The table below
shows the concentration of risk by type of loan.
March 31, 2020 March 31, 2019

Housing 47,607.57 73,340.61
Non Housing 22,603.87 19,046.57
The Group’s concentrations of risk ( for financial assets other than loans and advances) are managed by industry sector.
182 |
NOTES
The following table shows the risk concentration by industry for the financial assets of the Group:-
March 31, 2020 Financial Government* Others Total

services
Financial asset
Cash and cash equivalents 13,564.59 - - 13,564.59
Bank balance other than Cash and cash equivalents 1,474.06 - - 1,474.06
Derivative financial instruments 739.18 - - 739.18
Receivables 28.84 - - 28.84
Investments 9,038.13 3,165.23 74.10 12,277.46
Other financial assets 1,420.83 - - 1,420.83
* Government sector includes exposure to Central Government, State Governments, Government Corporations and
Government Companies.
March 31, 2019 Financial Government Others Total

services
Financial asset
Bank balance other than Cash and cash equivalents 718.43 - - 718.43
Investments 18,194.81 1,521.80 - 19,716.61
(C ) Market Risk
Market Risk is the risk that the value of on and off-balance sheet positions of a financial institution will be adversely
affected by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit spreads
and/or commodity prices resulting in a loss to earnings and capital.
Financial institutions may be exposed to Market Risk in variety of ways. Market risk exposure may be explicit in portfolios
of securities / equities and instruments that are actively traded. Conversely it may be implicit such as interest rate risk due
to mismatch of loans and deposits. Besides, market risk may also arise from activities categorized as off-balance sheet item.
Therefore market risk is potential for loss resulting from adverse movement in market risk factors such as interest rates,
forex rates, equity and commodity prices.
The Group’s exposure to market risk is primarily on account of interest rate risk and Foreign exchange risk.
(i) Interest Rate Risk:-
Interest rate risk arises when there is a mismatch between positions, which are subject to interest rate adjustment
within a specified period. The Group’s lending, funding and investment activities give rise to interest rate risk. The
immediate impact of variation in interest rate is on the Group’s net interest income, while a long term impact is
on the Group’s net worth since the economic value of the assets, liabilities and off-balance sheet exposures are
affected. While assessing interest rate risks, signals given to the market by RBI and government departments from
time to time and the financial industry’s reaction to them shall be continuously monitored.
Due to the very nature of housing finance, the Group is exposed to moderate to higher Interest Rate Risk. This risk
has a major impact on the balance sheet as well as the income statement of the Group. Interest Rate Risk arises due
to:
i) Changes in Regulatory or Market Conditions affecting the interest rates
ii) Short term volatility
iii) Prepayment risk translating into a reinvestment risk
iv) Real interest rate risk.
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NOTES
In short run, change in interest rate affects Group’s earnings (measured by NII or NIM) and in long run it affects
Market Value of Equity (MVE) or net worth. It is essential for the Group to not only quantify the interest rate risk but
also to manage it proactively. The Group mitigates its interest rate risk by keeping a balanced portfolio of fixed and
variable rate loans and borrowings. Further Group carries out Earnings at risk analysis and maturity gap analysis at
quarterly intervals to quantify the risk.
Interest Rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates (all other variables
being constant) of the Group’s statement of profit and loss:
Particulars Basis Effect on Profit / Effect on Profit /

Points Loss and Equity Loss and Equity
for the year for the year
2019-20 2018-19
Borrowings*
Increase in basis points +25 (111.62) (157.10)
Decrease in basis points -25 111.62 157.10
Advances
Increase in basis points +25 209.36 266.42
Decrease in basis points -25 (209.36) (266.42)
Investments
Increase in basis points +25 - (61.00)
Decrease in basis points -25 - 61.00
*The impact of borrowings is after considering the impact on derivatives contracts entered to hedge the interest rate
fluctuation on borrowings.
(ii) 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 Group’s exposure to the risk of changes in foreign exchange rates relates
primary to the foreign currency borrowings taken from banks through the FCNR route and External Commercial
Borrowings (ECB).
The Group follows a conservative policy of hedging its foreign currency exposure through Forwards and / or Currency
Swaps in such a manner that it has fixed determinate outflows in its function currency and as such there would be
no significant impact of movement in foreign currency rates on the Group’s profit before tax (PBT) and equity.
(iii) Equity Price Risk
Equity price risk is the risk that the fair value of equities decreases as the result of changes in the level of equity
indices and individual stocks. The non–trading equity price risk exposure arises from equity securities classified as
FVOCI. A 10 per cent increase in the value of the company’s FVOCI equities at March 31, 2020 would have increased
equity by Rs. 290.43 Crore (Previous Year Rs. 280.58 Crore). An equivalent decrease would have resulted in an
equivalent but opposite impact.
(D) Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from
external events. Operational risk is associated with human error, system failures and inadequate procedures and controls.
It is the risk of loss arising from the potential that inadequate information system; technology failures, breaches in internal
controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation
problems. Operational risk exists in all products and business activities.
184 |
NOTES
IBHFL recognizes that operational risk event types that have the potential to result in substantial losses includes Internal
fraud, External fraud, employment practices and workplace safety, clients, products and business practices, business
disruption and system failures, damage to physical assets, and finally execution, delivery and process management.
The Group cannot expect to eliminate all operational risks, but it endeavours to manage these risks through a control
framework and by monitoring and responding to potential risks. Controls include effective segregation of duties, access,
authorisation and reconciliation procedures, staff education and assessment processes, such as the use of internal audit.
(43) (i) Adoption of new accounting standard on Leases – Ind AS 116
The Group has adopted the new standard, Ind AS 116 Leases with effect from 1st April, 2019 using the modified
retrospective approach as per para C8 (c)(i) of Ind AS 116. The Group has taken the cumulative impact of applying the
standard to retained earnings as on the date of initial application (1st April, 2019). Accordingly, the Group has not restated
the comparative information.
On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of INR 310.87 Crore and
a lease liability of INR 310.87 Crore.
In statement of profit and loss for the current period, the nature of expenses in respect of operating leases has changed
from lease rent in previous periods to depreciation cost for the right-to-use asset and finance cost for interest accrued on
lease liability
In the context of initial application, the Group has exercised the option not to apply the new recognition requirements to
short-term leases.
(ii) The lease liabilities as at 1 April 2019 can be reconciled to the operating lease commitments as of 31 March 2019, as
follows:
March 31, 2019 Amount

Operating lease commitments as at 31 March 2019 396.41
Weighted average incremental borrowing rate as at 1 April 2019 9.00%
Lease liabilities as at 1 April 2019 310.87
(iii) For leases previously accounted for as operating lease, the Company availed following practical expedients transition:
The Group also applied the available practical expedients wherein it:
• Used a single discount rate to a portfolio of leases with reasonably similar characteristics
• Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial
application
• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application
• Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease
(iv) Leases where the Company is a Lessee
(a) The Group has lease contracts for various office premises used in its operations. Leases of office premises
generally have lease terms between 1 to 12 years. The Group’s obligations under its leases are secured by the
lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets.
The Group also has certain leases of office premises with lease terms of 12 months or less. The Group applies the
‘short-term lease’ recognition exemptions for these leases.
| 185
NOTES
(b) Leases are shown as follows in the Group’s balance sheet and profit & loss account
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
Particulars Building - Office Total

Premises Amount
Amount
Opening balance as at 1 April 2019 on implementation of IndAS 116 310.87 310.87
Additions 20.90 20.90
Deletion (Terminated during the period) (19.30) (19.30)
Depreciation expense 59.18 59.18
Closing net carrying balance 31 March 2020 253.29 253.29
Set out below are the carrying amounts of lease liabilities (included under Borrowings (Other than Debt Securities))
and the movements during the period:
Particulars Amount
Opening balance as at 1 April 2019 on implementation of IndAS 116 310.87
Additions 20.90
Deletion (Terminated during the period) (20.38)
Accretion of interest 26.48
Payments (73.04)
As at 31 March 2020 264.82
Current 46.55
Non-current 218.28
(c) Amounts recognized in the Statement of Profit and Loss for the financial Year 2019-20
Particulars Amount
Depreciation expense of right-of-use assets 59.18
Interest expense on lease liabilities 26.48
Gain on termination of leases (1.08)
Expense relating to short-term leases (included in other expenses) 7.78
Total amount recognised in profit or loss 92.36
(V) Lease disclosures under Ind-AS 17 for the comparative year ended 31 March 2019
The total lease payments recognised in the Statement of Profit and Loss towards the said leases are as follows:
Particulars Year ended

March 31, 2019
Amount
Lease Payment (Rent) 70.84
(vi) Lease Commitment as on 31 March 2019
The Group has taken office premises on Lease and Leave & License basis at various locations in India. Lease rent / License
fees aggregating to Rs. 70.84 Crore in respect of the same have been charged to the Statement of Profit and Loss. The
agreements are executed for periods ranging from 11 months to 12 years with a renewable clause. In many cases, the
agreements also provide for termination at will by either party by giving a prior notice period between 30 to 90 days. The
minimum lease rentals outstanding as at March 31, 2019, are as under:
186 |
NOTES
Particulars Minimum Lease

Rentals
Year ended
March 31, 2019
Amount
Not later than One year 78.97
Later than One year but not later than Five years 223.10
Later than Five Years 94.34
Total 396.41
(44) (1) In respect of IBHFL, the outbreak of COVID–19 virus continues to spread across the globe including India, resulting into a
significant decline and volatility in financial markets and a significant decrease in global and India’s economic activities. The
Government of India announced a strict 40-day nation-wide lockdown till May 3, 2020 to contain the spread of the virus,
which was further extended till June 08, 2020. This has led to significant disruptions and dislocations for individuals and
businesses. The recent directions from Government allows for calibrated and gradual withdrawal of lockdown and partial
resumption of selected economic activities. The extent to which the COVID 19 pandemic will impact the Holding Company’s
business is dependent on several factors including, but not limited to, pace of easing of the lockdown restrictions.
A. In accordance with RBI guidelines relating to CoVID-19 Regulatory Package dated 27 March 2020 and 17 April
2020, the Holding Company has granted moratorium of three months on the payment of all instalments falling due
between 1 March 2020 and 31 May 2020 to all eligible borrowers who have requested for the moratorium. The RBI
via press release dated May 22, 2020 has permitted lending institutions to extend the moratorium by another three
months, i.e., from June 1, 2020 to August 31, 2020. The Holding Company will be providing option for extending the
moratorium to its eligible borrowers’ basis its Board approved policy. In accordance with the guidance from Institute
of Chartered Accountant of India (“ICAI”), extension of the moratorium to borrowers by the Holding Company
pursuant to the RBI guidelines relating to COVID 19 Regulatory Package dated March 27, 2020 and April 17, 2020
and RBI press conference, by itself is not considered to result in a SICR for a borrower.
The Holding Company is mainly engaged in providing individual housing loans, loans against property (LAP) and
project finance for real estate development. Operations of all these segments were impacted over the past few
years and consequent to COVID 19 pandemic are expected to be further significantly impacted, including erosion
in the asset values of the collateral held by the Holding Company. The Holding Company has assessed each of its
loan portfolios and performed a comprehensive analysis of the staging of each of its borrower segment. Further,
for project finance loans, the Holding Company has reviewed the project status, funding plans and analysis of the
borrowers for large projects. Further, the Holding Company has also analysed its outstanding exposures viz a viz the
valuation of the collateral/underlying property based on third party valuation reports. Based on the above analysis,
the Holding Company has recorded an expected credit loss provision of Rs. 3,473 Crore in respect of its loans and
advances at 31 March 2020, to reflect, among other things, an increased risk of deterioration in macro-economic
factors caused by COVID-19 pandemic. The ECL provision has been determined based on estimates using information
available as of the reporting date and given the unique nature and scale of the economic impact of this pandemic,
the expected credit loss including management overlay is based on various variables and assumptions, which could
result in actual credit loss being different than that being estimated. Further, as a result of this pandemic, the credit
performance and repayment behaviour of the customers needs to be monitored closely. In the event the impact of
pandemic is more severe or prolonged than anticipated, this will have a corresponding impact on the carrying value
of the financial assets, results of operation and the financial position of the Holding Company.
B. The Holding Company has considered the following key matters in determining its liquidity position for the next 12
months:
a. Schemes announced by the Government of India, which will directly benefit Non-Banking Financial Companies
through guarantees from the Government of India. The Company has evaluated these schemes and is
considering applications to seek fund under the schemes;
b. Current status / outcomes of discussions with the Company’s lenders, seeking moratorium on the Holding
Company’s debt service obligations to such lenders;
c. Status of its requests for additional funding, from existing lenders as well as others.
Based on the detailed assessment of the monthly cash inflows and outflows for next 12 months and the management
has concluded that it will be able to meet its obligations.
| 187
NOTES
(2) In respect of Indiabulls Commercial Credit Limited (‘ICCL’, ‘the Company’), the outbreak of COVID–19 virus continues
to spread across the globe including India, resulting into a significant decline and volatility in financial markets and a
significant decrease in global and India’s economic activities. The Government of India announced a strict 40-day nation-
wide lockdown to contain the spread of the virus till May 3, 2020, which was further extended till June 08, 2020. This has
led to significant disruptions and dislocations for individuals and businesses. The recent directions from Government allows
for calibrated and gradual withdrawal of lockdown and partial resumption of selected economic activities. The extent
to which the COVID 19 pandemic will impact Indiabulls Commercial Credit Limited (‘ICCL’, ‘the Company’)’s business is
dependent on several factors including, but not limited to, pace of easing of the lockdown restrictions.
A. In accordance with the Reserve Bank of India’s guidelines relating to CoVID-19 Regulatory Package dated 27 March
2020 and 17 April 2020, ICCL has granted moratorium of three months on the payment of all instalments falling due
between 1 March 2020 and 31 May 2020 to all eligible borrowers who have requested for the moratorium, as per
its Board approved policy. The RBI via press release dated May 22, 2020 has permitted lending institutions to extend
the moratorium by another three months, i.e., from June 1, 2020 to August 31, 2020. ICCL has extended the EMI
moratorium to its customers based on requests received from such customers, as per its Board approved policy. In
accordance with the guidance from the ICAI and in management’s view, the extension of the moratorium to the
Company’s borrowers by the Company pursuant to the RBI guidelines relating to COVID 19 Regulatory Package dated
March 27, 2020 and April 17, 2020 and RBI press release, by itself is not considered to result in a significant credit
risk (SICR) of such borrowers.
ICCL is mainly engaged in the business of financing by way of loans against property (LAP), mortgage backed SME
loans, and certain other purposes in India. Operations of all these segments were impacted over the past few years
and consequent to COVID 19 pandemic are expected to be further significantly impacted, including erosion in the
asset values of the collaterals held by the Company. The Company has assessed each of its loan portfolios and
performed a comprehensive analysis of the staging of each of its borrower segments. Further, the Company has also
analysed its outstanding exposures viz a viz the valuation of the collateral/underlying property based on third party
valuation reports. Based on the above analysis, ICCL has recorded a provision for impairment due to expected credit
loss (ECL), of Rs. 267.77 crores in respect of its loans and advances as at 31 March 2020, to reflect, among other
things, an increased risk of deterioration in macro-economic factors caused by COVID-19 pandemic. The ECL provision
has been determined based on estimates using information available as of the reporting date and given the unique
nature and scale of the economic impact of this pandemic, the expected credit loss is based on various variables and
assumptions, which could result in actual credit loss being different than that being estimated. As a result of this
pandemic, the credit performance and repayment behaviour of the customers’ needs to be monitored closely. In the
event the impact of pandemic is more severe or prolonged than anticipated, this will have a corresponding impact
on the carrying value of the financial assets, results of operations and the financial position of the Company.
B. Indiabulls Commercial Credit Limited (‘ICCL’, ‘the Company’) has considered the following key matters in determining
its liquidity position for the next 12 months:
through guarantees from the Government of India. The Company has evaluated these schemes and is
considering applications to seek fund under the schemes;
b. Current status / outcomes of discussions with the Company’s lenders, seeking moratorium on the Company’s
debt service obligations to such lenders;
Based on the detailed assessment of the monthly cash inflows and outflows for next 12 months and the management
has concluded that it will be able to meet its obligations.
(45) Previous Year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification
/ disclosures.
For and on behalf of the Board of Directors
Sameer Gehlaut Gagan Banga Ashwini Omprakash Kumar Mukesh Garg Amit Jain
Chairman / Whole Time Director Vice Chairman / Managing Whole Time Director CFO Company Secretary
DIN : 00060783 Director & CEO DIN : 03341114 New Delhi Gurugram
London DIN : 00010894 Mumbai
Mumbai
July 3, 2020
188 |
INDEPENDENT AUDITOR’S REPORT

To the Members of Indiabulls Housing Finance Limited in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and
Report on the Audit of the Standalone Ind AS Financial Statements
appropriate to provide a basis for our qualified audit opinion on
Qualified Opinion the standalone Ind AS financial statements.
We have audited the accompanying standalone Ind AS financial Emphasis of Matter
statements of Indiabulls Housing Finance Limited (“the
a. We draw attention to Note 47(A) of the financial statements
Company”), which comprise the Balance sheet as at March 31
which describes the uncertainties relating to the impact of
2020, the Statement of Profit and Loss, including the statement
COVID-19 pandemic including the recovery of the real estate
of Other Comprehensive Income, the Cash Flow Statement and
sector and the Indian economy, for which management
the Statement of Changes in Equity for the year then ended, and
has considered the information available till the date of
notes to the standalone Ind AS financial statements, including a
these financial statements in developing its estimates of
summary of significant accounting policies and other explanatory
the expected credit loss provision required as at March
information.
31, 2020. The Company’s operations and financial results
In our opinion and to the best of our information and according to will depend on future developments, which are highly
the explanations given to us, except for the effects of the matters uncertain and the actual credit loss could be different than
described in the ‘Basis for Qualified Opinion’ section of our report, that estimated as of the date of the financial statements.
the aforesaid standalone Ind AS financial statements give the Our opinion is not modified in respect of this matter.
information required by the Companies Act, 2013, as amended
b. We draw attention to Note 21(12b) of the standalone
(“the Act”) in the manner so required and give a true and fair view
financial statements which states that the Company has
in conformity with the accounting principles generally accepted in
debited Rs.964.71 crores for the impairment loss allowance
India, of the state of affairs of the Company as at March 31, 2020,
in the Additional Reserve created under section 29 (c) of
its profit including other comprehensive income, its cash flows
NHB Act, 1987 as per NHB circular no. NHB (ND)/DRS/
and the changes in equity for the year ended on that date.
Pol-No.03/2004-05 dated August 26, 2004 (“Additional
Basis for Qualified Opinion Reserve u/s 29 (c)”) instead of recording the impairment in
statement of profit and loss. Given that the utilization of
As more fully explained in Note 21(12a) to the financial statement, the Additional Reserve u/s 29(c) is in accordance with the
regarding the impairment on financial instruments recorded NHB Act, 1987, our opinion is not modified in respect of this
during the year ended March 31, 2020, which includes the matter.
impact of COVID-19 on the Company’s borrowers, the Company
has debited impairment on financial instruments amounting to Key Audit Matters
Rs.1,798 crores to Other Comprehensive Income which should
Key audit matters are those matters that, in our professional
have been debited to the Statement of Profit and Loss as required
judgment, were of most significance in our audit of the standalone
by Ind AS 109 “Financial Instruments”. The above pertains only
Ind AS financial statements for the financial year ended March 31,
to accounting treatment as prescribed in Ind AS 109 “Financial
2020. These matters were addressed in the context of our audit
Instruments” and constitutes a departure therefrom. Had the
of the standalone Ind AS financial statements as a whole, and in
Company recorded the amount of impairment on financial
forming our opinion thereon, and we do not provide a separate
instruments in the Statement of Profit and Loss, the profit after tax
opinion on these matters. In addition to the matter described
would have reduced by Rs.1,798 crores. As noted in Note 21(12d)
in the ‘Basis for Qualified Opinion’ section we have determined
of the financial statements, due to this there is no resultant impact
the matters described below to be the key audit matters to
on the carrying value of the total equity, assets and liabilities of
be communicated in our report. For each matter below, our
the Company.
description of how our audit addressed the matter is provided in
We conducted our audit of the standalone Ind AS financial that context.
statements in accordance with the Standards on Auditing (SAs),
We have fulfilled the responsibilities described in the Auditor’s
as specified under section 143(10) of the Act. Our responsibilities
responsibilities for the audit of the standalone Ind AS financial
under those Standards are further described in the ‘Auditor’s
statements section of our report, including in relation to these
Responsibilities for the Audit of the standalone Ind AS Financial
matters. Accordingly, our audit included the performance of
Statements’ section of our report. We are independent of the
procedures designed to respond to our assessment of the risks
Company in accordance with the ‘Code of Ethics’ issued by
of material misstatement of the standalone Ind AS financial
the Institute of Chartered Accountants of India together with
statements. The results of our audit procedures, including the
the ethical requirements that are relevant to our audit of the
procedures performed to address the matters below, provide the
financial statements under the provisions of the Act and the Rules
basis for our audit opinion on the accompanying standalone Ind
thereunder, and we have fulfilled our other ethical responsibilities
AS financial statements.
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Impairment of financial instruments (including provision for expected credit losses) (as described in note 8 of the Ind AS financial
statements)
Ind AS 109 requires the Company to provide for impairment of • Our audit procedures included considering the Company's
its financial assets using the expected credit loss (‘ECL’) approach accounting policies for impairment of loan receivables
involving an estimation of probability of loss on the financial and assessing compliance with the policies in terms of
assets over their life, considering reasonable and supportable Ind AS 109.
information about past events, current conditions and forecasts of
• Tested the assumptions used by the Company for grouping
future economic conditions which could impact the credit quality
and staging of loan portfolio into various categories and
of the Company’s loans and advances. In the process, a significant
default buckets for determining the PD and LGD rates.
degree of judgement has been applied by the management in
respect of following matters: • Tested the operating effectiveness of the controls for
staging of loans based on their past-due status. Tested a
• The Company has various loan products divided into
sample of performing (stage 1) loans to assess whether any
Corporate loan portfolio and Retail loan portfolio. Retail
loss indicators were present requiring them to be classified
loans are grouped into different categories on the basis of
under stage 2 or 3.
homogeneity and thereby expected to demonstrate similar
credit characteristics. Corporate loan portfolio is assessed • Tested the input data used for determining the PD and LGD
on a case to case basis. rates and agreed the data with the underlying books of
accounts and records.
• Estimation of losses in respect of those groups of loans
which had no/ minimal defaults in the past. • Performed inquiries with the Company’s management and
its risk management function to assess the impact of lock-
• Staging of loans and estimation of behavioral life.
down on the business activities of the Company.
• Management overlay for macro-economic factors and
• Assessed the Company’s policy with respect to moratorium
estimation of their impact on the credit quality.
pursuant to the RBI circular and tested the implementation
The Company has developed models that derive key assumptions of such policy on a sample basis.
used within the provision calculation such as probability of default
• Assessed the additional considerations applied by the
(PD) and loss given default (LGD).
management for staging of loans as SICR/ default in view of
The output of these models is then applied to the provision Company’s policy on moratorium.
calculation with other information including and the exposure at
• Tested assumptions used by the management in
default (EAD).
determining the overlay for macro-economic factors
Additional considerations on account of COVID-19 (including CoVID-19 pandemic).
Pursuant to the Reserve Bank of India circular dated March 27, • Tested the arithmetical accuracy of computation of ECL
2020 (“RBI circular”) allowing lending institutions to offer a provision performed by the Company in spreadsheets.
moratorium to customers on payment of instalments falling due
• Compared the disclosures included in the Ind AS financial
between March 1, 2020 and May 31, 2020, the Company has
statements in respect of expected credit losses with the
extended a moratorium to its borrower in accordance with its
requirements of Ind AS 107 and 109. Reviewed specific
Board approved policy as described in Note 47(A).
disclosures made in the Ind AS financial statements with
In accordance with the guidance from Institute of Chartered regards to the impact of CoVID-19 on ECL estimation.
Accountants of India (ICAI), extension of the moratorium to
borrowers by itself is not considered to result in a SICR for a
borrower, however the entity needs to evaluate whether the
borrowers to which moratorium is granted will remain regular
once the moratorium period gets over. The Company has recorded
a management overlay as part of its ECL, to reflect among other
things an increased risk of deterioration in macro-economic
factors caused by Novel Coronavirus (CoVID-19) pandemic. In
accordance with the guidance in Ind AS 109, the management
overlay estimate takes into account reasonably and supportable
information without incurring significant cost. The actual credit
losses for the next 12 months could be significantly different than
the ECL estimates prepared by the Company depending upon the
impact and duration of the pandemic and various regulatory and
policy measures announced by the Government.
Given the high degree of management’s judgement involved in
estimation of ECL, it is an area of material uncertainty and a key
audit matter.
190 |
Fair valuation of financial assets held at fair value through other comprehensive income (“FVTOCI”) or fair value through profit and
loss (“FVTPL”) (collectively “fair value”)
The Company has classified financial assets amounting to • Understood and tested the design and operating
Rs.2,904.30 as held at fair value through OCI (FVTOCI) and effectiveness of the Company’s control over the assessment
Rs.7,878.58 crores as held at fair value through profit and loss of valuation of investments.
(FVTPL) in accordance with Ind AS 109. Additionally, the Company
• Involved the auditor’s expert to assess the reasonableness
is also required to disclose fair value of its financial assets and
of the valuation methodology and underlying assumptions
liabilities held at amortized cost in accordance with Ind AS 107.
used by the management to estimate the fair value for
The determination of the fair value of financial assets is considered sample of investments.
to be a significant area in view of the materiality of amounts
• Obtain the valuation reports from external valuers,
involved, judgements involved in selecting the valuation basis,
information available in public domain to assess the value
and use of unobservable inputs.
of investment determined by the Company.
Given the inherent subjectivity in the valuation of the above
• Validated the source data and tested the arithmetical
investments, relative significance of these investments to
accuracy of the calculation of valuation of investments.
the financial statements and the nature and extent of audit
procedures involved, we determined this to be a key audit matter. • Assessed the adequacy of disclosure in the financial
statements.
Other Information
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Chairman’s speech and Director’s Report, but does In preparing the standalone Ind AS financial statements,
not include the standalone Ind AS financial statements and our management is responsible for assessing the Company’s ability
auditor’s consideration. to continue as a going concern, disclosing, as applicable, matters
Our opinion on the standalone Ind AS financial statements does related to going concern and using the going concern basis of
not cover the other information and we do not express any form accounting unless management either intends to liquidate the
of assurance conclusion thereon. Company or to cease operations, or has no realistic alternative but
to do so.
In connection with our audit of the standalone Ind AS financial
statements, our responsibility is to read the other information Those Board of Directors are also responsible for overseeing the
and, in doing so, consider whether such other information is Company’s financial reporting process.
materially inconsistent with the financial statements or our Auditor’s Responsibilities for the Audit of the standalone Ind AS
knowledge obtained in the audit or otherwise appears to be Financial Statements
materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other Our objectives are to obtain reasonable assurance about whether
information, we are required to report that fact. We have nothing the standalone Ind AS financial statements as a whole are free
to report in this regard. from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable
Responsibilities of the Management for the standalone Ind AS assurance is a high level of assurance, but is not a guarantee that
Financial Statements an audit conducted in accordance with SAs will always detect a
The Company’s Board of Directors is responsible for the matters material misstatement when it exists. Misstatements can arise
stated in section 134(5) of the Act with respect to the preparation from fraud or error and are considered material if, individually or
of these standalone Ind AS financial statements that give a true in the aggregate, they could reasonably be expected to influence
and fair view of the financial position, financial performance the economic decisions of users taken on the basis of these
including other comprehensive income, cash flows and changes standalone Ind AS financial statements.
in equity of the Company in accordance with the accounting As part of an audit in accordance with SAs, we exercise professional
principles generally accepted in India, including the Indian judgment and maintain professional skepticism throughout the
Accounting Standards (Ind AS) specified under section 133 of the audit. We also:
Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. This responsibility also includes maintenance • Identify and assess the risks of material misstatement of
of adequate accounting records in accordance with the provisions the standalone Ind AS financial statements, whether due
of the Act for safeguarding of the assets of the Company and for to fraud or error, design and perform audit procedures
preventing and detecting frauds and other irregularities; selection responsive to those risks, and obtain audit evidence that is
and application of appropriate accounting policies; making sufficient and appropriate to provide a basis for our opinion.
judgments and estimates that are reasonable and prudent; and The risk of not detecting a material misstatement resulting
the design, implementation and maintenance of adequate internal from fraud is higher than for one resulting from error, as
financial controls, that were operating effectively for ensuring the fraud may involve collusion, forgery, intentional omissions,
accuracy and completeness of the accounting records, relevant misrepresentations, or the override of internal control.
to the preparation and presentation of the standalone Ind AS
• Obtain an understanding of internal control relevant to
financial statements that give a true and fair view and are free
the audit in order to design audit procedures that are
from material misstatement, whether due to fraud or error.
appropriate in the circumstances. Under section 143(3)(i) of
| 191
the Act, we are also responsible for expressing our opinion (c) The Balance Sheet, the Statement of Profit and Loss
on whether the Company has adequate internal financial including Other Comprehensive Income, the Cash
controls with reference to financial statements in place and Flow Statement and Statement of Changes in Equity
the operating effectiveness of such controls. dealt with by this Report are in agreement with the
• Evaluate the appropriateness of accounting policies used books of account;
and the reasonableness of accounting estimates and related (d) In our opinion, except for the effects of the matter
disclosures made by management. described in the Basis for Qualified Opinion
• Conclude on the appropriateness of management’s use of paragraph above, the aforesaid standalone Ind AS
the going concern basis of accounting and, based on the financial statements comply with the Accounting
audit evidence obtained, whether a material uncertainty Standards specified under Section 133 of the Act,
exists related to events or conditions that may cast read with Companies (Indian Accounting Standards)
significant doubt on the Company’s ability to continue as Rules, 2015, as amended;
a going concern. If we conclude that a material uncertainty (e) On the basis of the written representations received
exists, we are required to draw attention in our auditor’s from the directors as on March 31, 2020 taken
report to the related disclosures in the financial statements on record by the Board of Directors, none of the
or, if such disclosures are inadequate, to modify our opinion. directors is disqualified as on March 31, 2020 from
Our conclusions are based on the audit evidence obtained being appointed as a director in terms of Section 164
up to the date of our auditor’s report. However, future (2) of the Act;
events or conditions may cause the Company to cease to (f) With respect to the adequacy of the internal financial
continue as a going concern. controls over financial reporting of the Company
• Evaluate the overall presentation, structure and content of with reference to these standalone Ind AS financial
the standalone Ind AS financial statements, including the statements and the operating effectiveness of such
disclosures, and whether the standalone Ind AS financial controls, refer to our separate Report in “Annexure
statements represent the underlying transactions and 2” to this report;
events in a manner that achieves fair presentation. (g) In our opinion, the managerial remuneration for the
We communicate with those charged with governance regarding, year ended March 31, 2020 has been paid / provided
among other matters, the planned scope and timing of the audit by the Company to its directors in accordance with
and significant audit findings, including any significant deficiencies the provisions of section 197 read with Schedule V to
in internal control that we identify during our audit. the Act.
We also provide those charged with governance with a statement (h) With respect to the other matters to be included
that we have complied with relevant ethical requirements in the Auditor’s Report in accordance with Rule 11
regarding independence, and to communicate with them all of the Companies (Audit and Auditors) Rules, 2014,
relationships and other matters that may reasonably be thought as amended in our opinion and to the best of our
to bear on our independence, and where applicable, related information and according to the explanations given
safeguards. to us:
From the matters communicated with those charged with i. The Company has disclosed the impact of
governance, we determine those matters that were of most pending litigations on its financial position
significance in the audit of the standalone Ind AS financial in its standalone Ind AS financial statements
statements for the financial year ended March 31, 2020 and are – Refer Note 32(vii) and Note 33 to the
therefore the key audit matters. We describe these matters in our standalone Ind AS financial statements;
auditor’s report unless law or regulation precludes public disclosure ii. The Company has made provision, as required
about the matter or when, in extremely rare circumstances, we under the applicable law or accounting
determine that a matter should not be communicated in our standards, for material foreseeable losses,
report because the adverse consequences of doing so would if any, on long-term contracts including
reasonably be expected to outweigh the public interest benefits derivative contracts – Refer Note 6 and
of such communication. Note 27 to the standalone Ind AS financial
Report on Other Legal and Regulatory Requirements statements;
1. As required by the Companies (Auditor’s Report) Order, iii. There has been no delay in transferring
2016 (“the Order”), issued by the Central Government of amounts, required to be transferred, to the
India in terms of sub-section (11) of section 143 of the Act, Investor Education and Protection Fund by the
we give in the “Annexure 1” a statement on the matters Company.
specified in paragraphs 3 and 4 of the Order.
For S.R. Batliboi & Co. LLP
2. As required by Section 143(3) of the Act, we report that: Chartered Accountants
(a) We have sought and obtained all the information and ICAI Firm Registration Number: 301003E/E300005
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit; per Viren H. Mehta
(b) In our opinion, except for the effects of the matter Partner
described in the basis for Qualified Opinion paragraph Membership Number: 048749
above, proper books of account as required by law UDIN: 20048749AAAAJO8334
have been kept by the Company so far as it appears
from our examination of those books; Mumbai
July 3, 2020
192 |
Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and regulatory requirements” of our report of even
date
Re: Indiabulls Housing Finance Limited (iii) According to the information and explanations given
to us, the Company has not granted any loans, secured
(i) (a) The Company has maintained proper records
or unsecured to companies, firms, Limited Liability
showing full particulars, including quantitative
Partnerships or other parties covered in the register
details and situation of fixed assets.
maintained under section 189 of the Companies Act, 2013.
(b) The fixed assets were physically verified by the Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of
management in the year in accordance with a planned the Order are not applicable to the Company and hence not
phased programme of verifying them over a period commented upon.
of three years which, in our opinion, is reasonable
(iv) In our opinion and according to the information and
having regard to the size of the Company and the
explanations given to us, there are no loans, investments,
nature of its assets. No material discrepancies were
guarantees, and securities given in respect of which
noticed on such verification.
provisions of section 185 and 186 of the Act are applicable
(c) According to the information and explanations given and hence not commented upon.
by the management, the title deeds of immovable
(v) The Company has not accepted any deposits within the
properties included in property, plant and equipment
meaning of Sections 73 to 76 of the Act and the Companies
are held in the name of the Company, except as
(Acceptance of Deposits) Rules, 2014 (as amended).
follows:
Accordingly, the provisions of clause 3(v) of the Order are
1. Freehold land located at Lal Dora village of Bijwasan, not applicable.
New Delhi, having carrying amount of Rs.1,131,270
(vi) To the best of our knowledge and as explained, the Central
as at March 31, 2020, mortgaged as security towards
Government has not specified the maintenance of cost
Secured Non-Convertible Debentures issued by the
records under section 148(1) of the Act, for the services of
Company.
the Company.
2. Freehold land located at District. Mehsana,
(vii) (a) Undisputed statutory dues including provident fund,
Ahmedabad having carrying amount of Rs.912,000
employees’ state insurance, income-tax, goods
as at March 31, 2020, mortgaged as security towards
and services tax, cess and other statutory dues
Secured Non- Convertible Debentures issued by the
have generally been regularly deposited with the
Company.
appropriate authorities though there has been a
Wherein, the title deeds are in the name of Indiabulls slight delay in a few cases. The provisions relating to
Financial Services Limited, (erstwhile Holding duty of excise and sales-tax are not applicable to the
Company) that was merged with the Company under Company.
Section 391 to 394 of the Companies Act, 1956 in
(b) According to the information and explanations given
terms of the approval of the Honourable High court
to us, no undisputed amounts payable in respect of
of judicature.
provident fund, employees’ state insurance, income-
Further, based on the information and explanation tax, goods and service tax, duty of custom, duty of
given to us, immovable property consisting of a excise, value added tax, cess and other statutory
freehold land and a flat (building) whose title deeds dues applicable to the Company were outstanding,
have been mortgaged as security towards Secured at the year end, for a period of more than six months
Non-Convertible Debentures issued by the Company from the date they became payable.
and are held in the name of the Company.
(c) According to the records of the Company, the dues
(ii) The Company’s business does not involve inventories and, outstanding of income-tax, sales-tax, service tax,
accordingly, the requirements under clause 3(ii) of the duty of custom, duty of excise, value added tax and
Order are not applicable to the Company and hence not cess on account of any dispute, are as follows:
commented upon.
| 193
Name of the Statute Nature of Amount under Amount unpaid Period to which its Forum where dispute
dues dispute (Rs.) relates is pending
The Income Tax Act, 1961 Income Tax 12,301,239 12,301,239 Financial year 2008-09 Supreme Court
The Income Tax Act, 1961 Income Tax 12,737,519 12,737,519 Financial year 2010-11 High Court of Delhi
The Income Tax Act, 1961 Income Tax 491,992 491,992 Financial year 2010-11 CIT (Appeals)
The Income Tax Act, 1961 Income Tax 1,144,660 1,144,660 Financial year 2012-13 CIT (Appeals)
The Rajasthan Value Added Value Added 14,505,873 6,206,103 Year ended March 31, Rajasthan High Court
Tax Act, 2003 Tax 2008 to October 31,
2012
(viii) In our opinion and according to the information and (xiii) According to the information and explanations given by
explanations given by the management, the Company the management, transactions with the related parties are
has not defaulted in repayment of loans or borrowing to in compliance with section 177 and 188 of the Act where
a financial institution, bank or dues to debenture holders. applicable and the details have been disclosed in the notes
The Company does not have any due of loans or borrowing to the financial statements, as required by the applicable
to government during the year. accounting standards.
(ix) According to the information and explanations given by the (xiv) According to the information and explanations given to
management, the Company has not raised any money by us and on an overall examination of the balance sheet,
way of initial public offer or further public offer. the company has not made any preferential allotment or
Further, monies raised by the Company by way of term private placement of shares or fully or partly convertible
loans and non-convertible debenture were applied for the debentures during the year under review and hence,
purpose for which those were raised, though idle/surplus reporting requirements under clause 3(xiv) are not
funds which were not required for immediate utilization applicable to the company and, not commented upon.
were gainfully invested in liquid investments payable on (xv) According to the information and explanations given by the
demand. management, the Company has not entered into any non-
(x) Based upon the audit procedures performed for the cash transactions with directors or persons connected with
purpose of reporting the true and fair view of the the directors as referred to in section 192 of the Act.
financial statements and according to the information and (xvi) According to the information and explanations given to us,
explanations given by the management, we report that no the provisions of section 45-IA of the Reserve Bank of India
fraud by the Company or no material fraud on the Company Act, 1934 are not applicable to the Company.
by the officers and employees of the Company has been
noticed or reported during the year. For S.R. Batliboi & Co. LLP
Chartered Accountants
(xi) According to the information and explanations given by the ICAI Firm Registration Number: 301003E/E300005
management, the managerial remuneration has been paid
and provided in accordance with the requisite approvals per Viren H. Mehta
mandated by the provisions of section 197, read with Partner
Schedule V to the Act. Membership Number: 048749
UDIN: 20048749AAAAJO8334
(xii) In our opinion, the Company is not a nidhi company.
Therefore, the provisions of clause 3(xii) of the Order are Mumbai
not applicable to the Company and hence not commented July 3, 2020
upon.
194 |
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- accurately and fairly reflect the transactions and dispositions of
section 3 of Section 143 of the Companies Act, 2013 (“the Act”) the assets of the company; (2) provide reasonable assurance that
We have audited the internal financial controls over financial transactions are recorded as necessary to permit preparation
reporting of Indiabulls Housing Finance Limited (“the Company”) of financial statements in accordance with generally accepted
as of March 31, 2020, in conjunction with our audit of the accounting principles, and that receipts and expenditures of the
standalone financial statements of the Company for the year company are being made only in accordance with authorisations
ended on that date. of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection
Management’s Responsibility for Internal Financial Controls of unauthorised acquisition, use, or disposition of the company’s
The Company’s management is responsible for establishing and assets that could have a material effect on the financial statements.
maintaining internal financial controls based on the internal Inherent Limitations of Internal Financial Controls Over Financial
control over financial reporting criteria established by the Reporting With Reference to these Standalone Financial
Company considering the essential components of internal control Statements
stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Because of the inherent limitations of internal financial controls
Accountants of India (the ‘IFC framework”). These responsibilities over financial reporting with reference to these standalone financial
include the design, implementation and maintenance of adequate statements, including the possibility of collusion or improper
internal financial controls that were operating effectively for management override of controls, material misstatements due to
ensuring the orderly and efficient conduct of its business, error or fraud may occur and not be detected. Also, projections
including adherence to the Company’s policies, the safeguarding of any evaluation of the internal financial controls over financial
of its assets, the prevention and detection of frauds and errors, reporting with reference to these standalone financial statements
the accuracy and completeness of the accounting records, and the to future periods are subject to the risk that the internal financial
timely preparation of reliable financial information, as required control over financial reporting with reference to these standalone
under the Companies Act, 2013. financial statements may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
Auditor’s Responsibility procedures may deteriorate.
Our responsibility is to express an opinion on the Company’s Qualified Opinion
internal financial controls over financial reporting with reference
to these standalone financial statements based on our audit. According to the information and explanations given to us and
We conducted our audit in accordance with the Guidance Note based on our audit, in our opinion, the Company has, in all material
on Audit of Internal Financial Controls Over Financial Reporting respects, maintained adequate internal financial controls over
(the “Guidance Note”) and the Standards on Auditing as specified financial reporting with reference to these standalone financial
under section 143(10) of the Companies Act, 2013, to the statements as of March 31, 2020, based on the internal control
extent applicable to an audit of internal financial controls and, over financial reporting criteria established by the Company
both issued by the Institute of Chartered Accountants of India. considering the essential components of internal control stated
Those Standards and the Guidance Note require that we comply in the Guidance Note on Audit of Internal Financial Controls
with ethical requirements and plan and perform the audit to Over Financial Reporting issued by the Institute of Chartered
obtain reasonable assurance about whether adequate internal Accountants of India, except for the material weakness relating
financial controls over financial reporting with reference to these to departure from Indian Accounting Standards (Ind AS) specified
standalone financial statements was established and maintained under section 133 of the Act read with the Companies (Indian
and if such controls operated effectively in all material respects. Accounting Standards) Rules, 2015 for the preparation of the
An audit involves performing procedures to obtain audit evidence financial statements as more fully described in paragraph “Basis
about the adequacy of the internal financial controls over for Qualified Opinion” of our audit report dated July 3, 2020.
financial reporting with reference to these standalone financial Explanatory paragraph
statements and their operating effectiveness. Our audit of internal We also have audited, in accordance with the Standards on
financial controls over financial reporting included obtaining an Auditing issued by the Institute of Chartered Accountants of India,
understanding of internal financial controls over financial reporting as specified under Section 143(10) of the Act, the standalone
with reference to these standalone financial statements, assessing financial statements of Indiabulls Housing Finance Limited , which
the risk that a material weakness exists, and testing and evaluating comprise the Balance Sheet as at March 31, 2020, and the related
the design and operating effectiveness of internal control based Statement of Profit and Loss and Cash Flow Statement for the
on the assessed risk. The procedures selected depend on the year then ended, and a summary of significant accounting policies
auditor’s judgement, including the assessment of the risks of and other explanatory information. This material weakness was
material misstatement of the financial statements, whether due considered in determining the nature, timing, and extent of audit
to fraud or error. tests applied in our audit of the standalone financial statements
We believe that the audit evidence we have obtained is sufficient of Indiabulls Housing Finance Limited and this report affect our
and appropriate to provide a basis for our qualified audit opinion report dated July 3, 2020, which expressed a qualified opinion on
on the internal financial controls over financial reporting with those financial statements.
reference to these standalone financial statements.
For S.R. Batliboi & Co. LLP
Meaning of Internal Financial Controls Over Financial Reporting Chartered Accountants
With Reference to these Standalone Financial Statements
ICAI Firm Registration Number: 301003E/E300005
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 per Viren H. Mehta
of financial reporting and the preparation of financial statements Partner
for external purposes in accordance with generally accepted Membership Number: 048749
accounting principles. A company’s internal financial control over UDIN: 20048749AAAAJO8334
financial reporting with reference to these standalone financial
statements includes those policies and procedures that (1) Mumbai
pertain to the maintenance of records that, in reasonable detail, July 3, 2020
| 195
STANDALONE BALANCE SHEET

of Indiabulls Housing Finance Limited as at March 31, 2020
Particulars Note As at As at
No. March 31, 2020 March 31, 2019
ASSETS
Financial Assets
Cash and cash equivalents 4 11,491.60 13,356.59
Bank balance other than Cash and cash equivalents 5 1,421.69 665.90
Receivables
i) Trade Receivables 7 5.32 12.12
ii) Other Receivables - -
Loans 8 59,093.37 76,884.36
Investments 9 16,166.76 25,925.95
Other Financial Assets 10 1,387.32 1,460.84
Non- Financal Assets
Current tax assets (net) 968.45 708.79
Deferred tax assets (net) 31 349.95 -
Property, plant and equipment 11 113.41 125.18
Right-of-use Assets 46 247.93 -
Other Intangible assets 11 14.23 15.34
Other Non- Financial Assets 12 564.46 811.89
Non current assets held for sale 88.90 -
Total Assets 92,652.57 120,102.71
LIABILITIES
Payables
(I) Trade Payables 13
(i) total outstanding dues of micro enterprises and small enterprises - -
(ii) total outstanding dues of creditors other than micro enterprises and small 11.56 27.14
enterprises
Debt Securities 14 32,092.12 48,188.39
Borrowings (Other than Debt Securities) 15 36,609.92 43,686.81
Subordinated liabilities 16 4,338.60 4,329.38
Other Financial Liabilities 17 3,639.11 5,089.58
Non Financial Liabilities
Current tax liabilities (net) 60.81 53.02
Provisions 18 189.43 166.14
Deferred tax liabilities (net) 31 - 553.91
Other Non-Financial Liabitilies 19 593.60 643.46
Equity
Equity share capital 20 85.51 85.48
Other equity 21 14,844.09 17,173.44
Total Liabilities and Equity 92,652.57 120,102.71
DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai
196 |
STANDALONE STATEMENT OF PROFIT AND LOSS

of Indiabulls Housing Finance Limited for the Year ended March 31, 2020
Particulars Note Year ended Year ended

No. March 31, 2020 March 31, 2019
Revenue from operations
Interest Income 22 9,881.51 13,538.10
Dividend Income 23 816.82 385.12
Fees and commission Income 24 256.15 258.22
Net gain on fair value changes 25 - 616.78
Net gain on derecognition of financial instruments under amortised cost category 444.75 609.13
Total revenue from operations 11,399.23 15,407.35
Other Income 26 16.07 31.77
Total Income 11,415.30 15,439.12
Expenses
Finance Costs 27 7,709.60 9,057.11
Net loss on fair value changes 25 169.47 -
Impairment on financial instruments 28 109.26 213.12
Employee Benefits Expense 29 556.97 723.08
Depreciation, amortization and impairment 11 & 46(c) 97.80 36.97
Other expenses 30 225.48 261.22
Total Expenses 8,868.58 10,291.50
Tax Expense:
(1) Current Tax 31 319.20 1,079.20
(2) Deferred Tax Charge/ (Credit) 31 67.61 339.16
Profit for the Year 2,159.91 3,729.26
Other Comprehensive Income
A (i) Items that will not be reclassified to statement of profit or loss
(a) Remeasurement gain on defined benefit plan 9.57 4.63
(b) (Loss) / Gain on equity instrument designated at FVOCI (89.64) (45.25)
(c) impairment allowance (2,402.72) -
B (i) Items that will be reclassified to statement of profit or loss
(a) Derivative instruments in Cash flow hedge relationship (126.11) (54.02)
Other Comprehensive (loss) / Income (A+B) (1,961.88) (66.84)
Total Comprehensive Income for the Year 198.03 3,662.42
Earnings per equity share
Basic (Rs.) 37 50.52 87.37
Diluted (Rs.) 37 50.51 86.85
Nominal value per share (Rs.) 2.00 2.00
DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai
| 197
STANDALONE CASH FLOW STATEMENT


March 31, 2020 March 31, 2019
A Cash flows from operating activities :
Adjustments to reconcile profit before tax to net cash flows:
Employee Stock Compensation 27.32 75.85
Provision for Gratuity, Compensated Absences and Superannuation Expense 29.67 27.32
Impairment on Financial Instruments 816.25 436.50
Interest Expense 7,600.84 8,812.87
Interest Income (10,005.43) (14,147.23)
Dividend Received (816.82) (385.12)
Gain on Modification of Leases (0.77) -
Lease Rent Payment (68.57) -
Depreciation and Amortisation 97.80 36.97
Guarantee Income (12.43) -
Unrealised gains on appreciation of Investments (124.05) (27.02)
Operating Gain / (Loss) before working capital changes 92.53 (21.09)
Working Capital Changes
Trade Receivable, Other Financial and non Financial Assets (329.59) (610.37)
Loans 14,196.27 24,779.49
Trade Payables, other financial and non Financial Liabilities (1,005.55) (752.09)
Cash from / (used in) operations 12,953.66 23,395.94
Interest received on loans 9,375.60 13,842.34
Interest paid on borrowings (7,746.52) (8,598.25)
Income taxes paid (Net) (571.07) (1,214.28)
Net cash flow from operating activities 14,011.67 27,425.75
B Cash flows from investing activities
Purchase of Property, plant and equipment and other intangible assets (32.39) (82.15)
Sale of Property, plant and equipment 0.67 0.53
Movement in Capital Advances 2.84 12.03
Dividend Received 816.82 385.12
Investment in deposit accounts (755.79) (81.74)
Proceeds from / (Investments in) Subsidiaries / other Investments 9,071.53 (8,016.73)
Interest received on Investments 622.61 336.89
Net cash flow from / (used in) investing activities 9,726.29 (7,446.05)
C Cash flows from financing activities
Proceeds from Issue of Equity Share through ESOPs (Including Securities Premium) 4.99 23.88
Distribution of Equity Dividends (including Corporate Dividend Tax thereon) (1,594.93) (2,057.11)
Loan to Subsidiary Companies (341.42) (167.00)
(Repayment of) / Proceeds from bank loans and Others (Net) (9,131.32) 3,056.74
(Repayment of) from Commercial Papers (Net) (5,330.00) (7,125.00)
(Repayment of) Secured Redeemable Non-Convertible Debentures (Net) (10,989.09) (3,450.21)
Proceeds from issue of Perpetual Debt - 8.37
Proceeds from / (Repayment of) from Working capital loans (Net) 1,778.82 (795.84)
Net cash (used in) / from financing activities (25,602.95) (10,506.17)
D Net (Decrease) / Increase in cash and cash equivalents (A+B+C) (1,864.99) 9,473.53
E Cash and cash equivalents at the beginning of the year 13,356.59 3,883.06
F Cash and cash equivalents at the end of the year (D + E)(Refer Note 4) 11,491.60 13,356.59
Notes:
1. The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Indian Accounting Standard (Ind AS) - 7
on ‘Statement of Cash Flows’.
2 For disclosure of investing and financing activity that do not require cash and cash equivalent, refer note 32(iv).

DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai
198 |
STANDALONE STATEMENT OF CHANGES IN EQUITY
a. Equity Share Capital: Numbers Amount
Equity shares of INR 2 each issued, subscribed and fully paid
At 31 March , 2018 426,535,786 85.31
Add: Issued during the FY 2018-19 867,553 0.17
At 31 March , 2019 427,403,339 85.48
Add: Issued during the FY 2019-20 170,752 0.03
At 31 March , 2020 427,574,091 85.51
b. Other Equity:
Capital Capital Securites Stock General Special Reserve (I) As Reserve (II) Reserve (III) Additional Debenture Debenture Retained Equity Cash flow
reserve Redemption premium Compensation reserve Reserve U/s per section Reserve Fund Redemption Premium earnings instruments hedge reserve
Reserve Account Adjustment 36(I)(viii) of 29C of the (U/s 29C of Reserve Account through other
Reserve the Income Tax Housing Bank the National comprehensive
Act, 1961 Act, 1987 Housing Bank income
Act, 1987
At 31 March 2018 13.75 0.36 7,459.55 94.12 745.99 89.00 1,209.21 505.48 1,571.00 664.71 502.44 1.27 452.53 2,253.17 (92.76) 15,469.82
Profit for the period - - - - - - - - - - - - 3,729.26 - - 3,729.26
Other Comrehensive Income - - - - - - - - - - - - 3.01 (34.71) (35.14) (66.84)
Total comprehensive income - - - - - - - - - - - - 3,732.27 (34.71) (35.14) 3,662.42
Add: Transferred / Addition during the year - - - 75.85 210.00 - 358.85 - 387.00 300.00 332.23 0.01 - - - 1,663.94
01-24 Company Report
Add: during the year on Account of ESOPs - - 23.70 - - - - - - - - - - - - 23.70

Add: Transfer from Stock Comentation Adjustment - - 7.47 - - - - - - - - - - - - 7.47
A/c
Less: Transferred to Securities Premium Account - - - 7.47 - - - - - - - - - - - 7.47
Interim Dividend paid on Equity Shares @ Rs. 40 - - - - - - - - - - - - 1,707.39 - - 1,707.39
Per Share
Corporate Dividend Tax on Interim Dividend paid - - - - - - - - - - - - 350.97 - - 350.97
on Equity Shares
Transferred to Reserve III (Reserve U/s 36(1) (viii), - - - - - - - - - - - - 387.00 - - 387.00
Transferred to Reserve I (Special Reserve U/s 29C of - - - - - - - - - - - - 358.85 - - 358.85
25-94 Statutory Report
the NHB Act, 1987)

Transferred to Additional Reserve (U/s 29C of the - - - - - - - - - - - - 300.00 - - 300.00
National Housing Bank Act, 1987)
Transferred to General Reserve - - - - - - - - - - - - 210.00 - - 210.00
Transferred to Debenture Redemption Reserve - - - - - - - - - - - - 332.23 - - 332.23
Total Appropriations - - - - - - - - - - - 3,646.44 - - 3,646.44
As at 31 March, 2019 13.75 0.36 7,490.72 162.50 955.99 89.00 1,568.06 505.48 1,958.00 964.71 834.67 1.28 538.36 2,218.46 (127.90) 17,173.44
Profit for the period - - - - - - - - - - - - 2,159.91 - - 2,159.91
Other Comrehensive Income - - - - - - - - - - - - 5.25 (1,857.36) (109.77) (1,961.88)
95-296 Financial Statement
| 199
200 |
STANDALONE STATEMENT OF CHANGES IN EQUITY
of Indiabulls Housing Finance Limited for the Year ended March 31, 2020 (Contd.)

Capital Capital Securites Stock General Special Reserve (I) As Reserve (II) Reserve (III) Additional Debenture Debenture Retained Equity Cash flow
reserve Redemption premium Compensation reserve Reserve U/s per section Reserve Fund Redemption Premium earnings instruments hedge reserve
Reserve Account Adjustment 36(I)(viii) of 29C of the (U/s 29C of Reserve Account through other
Reserve the Income Tax Housing Bank the National comprehensive
Act, 1961 Act, 1987 Housing Bank income
Act, 1987
Total comprehensive income - - - - - - - - - - - - 2,165.16 (1,857.36) (109.77) 198.03
Add: Transferred / Addition during the year - - - 27.32 150.00 - 211.98 - 220.00 - 139.47 - - - - 748.77
Add: during the year on Account of ESOPs - - 4.96 - - - - - - - - - - - - 4.96
Add: Transfer from Stock Comentation Adjustment - - 1.32 - - - - - - - - - - - - 1.32
A/c
Less:Transferred to Securities Premium Account - - - 1.32 - - - - - - - - - - - 1.32
Less: Adjused / Utilised during the year - - - - - - - - - 964.71 - - - - - 964.71
Appropriations:-
Interim Dividend paid on Equity Shares @ Rs. 31 - - - - - - - - - - - - 1,325.31 - - 1,325.31
Per Share
Corporate Dividend Tax on Interim Dividend paid - - - - - - - - - - - - 269.64 - - 269.64
on Equity Shares
Transferred to Reserve III (Reserve U/s 36(1) (viii), - - - - - - - - - - - - 220.00 - - 220.00
Transferred to Reserve I (Special Reserve U/s 29C of - - - - - - - - - - - - 211.98 - - 211.98
the NHB Act, 1987)
Transferred to General Reserve - - - - - - - - - - - - 150.00 - - 150.00
Transferred to Debenture Redemption Reserve - - - - - - - - - - - - 139.47 - - 139.47

Total Appropriations - - - - - - - - - - - - 2,316.40 - - 2,316.40
At 31 March 2020 13.75 0.36 7,497.00 188.50 1,105.99 89.00 1,780.04 505.48 2,178.00 - 974.14 1.28 387.12 361.10 (237.67) 14,844.09
DIN : 00060783 DIN : 00010894
London Mumbai
Mumbai

NOTES
FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS OF INDIABULLS HOUSING FINANCE LIMITED FOR THE YEAR ENDED MARCH 31, 2020
1 Corporate information and other guidelines / instructions / circulars issued by the
National Housing Bank from time to time.
Indiabulls Housing Finance Limited (“the Company”)
("IBHFL") ("IHFL") is a public limited company domiciled 2 (i) Basis of preparation
in India with its registered office at M-62 & 63, Ist Floor,
The standalone financial statements of the Company
Connaught Place, New Delhi-110001. The Company
have been prepared in accordance with Indian
is engaged in the business to provide finance and to
Accounting Standards (Ind AS) notified under the
undertake all lending and finance to any person or
Companies (Indian Accounting Standards) Rules,
persons, co-operative society, association of persons, body
2015 (as amended from time to time).
of individuals, companies, institutions, firms, builders,
developers, contractors, tenants and others either at The standalone financial statements have been
interest or without and/or with or without any security prepared on a historical cost basis, except for fair
for construction, erection, building, repair, remodeling, value through other comprehensive income (FVOCI)
development, improvement, purchase of houses, instruments, derivative financial instruments, other
apartments, flats, bungalows, rooms, huts, townships and/ financial assets held for trading and financial assets
or other buildings and real estate of all descriptions or and liabilities designated at fair value through profit
convenience there on and to equip the same or part thereof or loss (FVTPL), all of which have been measured at
with all or any amenities or conveniences, drainage facility, fair value. Further the carrying values of recognised
electric, telephonic, television, and other installations, assets and liabilities that are hedged items in fair
either in total or part thereof and /or to purchase any free value hedges, and otherwise carried at amortised
hold or lease hold lands, estate or interest in any property cost, are adjusted to record changes in fair value
and such other activities as may be permitted under the attributable to the risks that are being hedged. The
Main Objects of the Memorandum of Association of the standalone financial statements are presented in
Company. Indian Rupees (INR). The figures are rounded off to
the neaest crore.
The Board of Directors of Indiabulls Housing Finance
Limited (100% subsidiary of "IBFSL") and Indiabulls Financial (ii) Presentation of financial statements
Services Limited "IBFSL", ("Erstwhile Holding Company")
at their meeting held on April 27, 2012 had approved the The Company presents its balance sheet in order of
Scheme of Arrangement involving the reverse merger liquidity. Financial assets and financial liabilities are
of IBFSL with the Company in terms of the provisions generally reported gross in the balance sheet. They
of Sections 391 to 394 of the Companies Act, 1956 (“the are only offset and reported net when, in addition
Scheme of Arrangement”). The Appointed Date of the to having an unconditional legally enforceable
proposed merger fixed under the Scheme of Arrangement right to offset the recognised amounts without
was April 1, 2012. The Hon’ble High Court of Delhi, vide its being contingent on a future event, the parties also
Order dated December 12, 2012, received by the Company intend to settle on a net basis in all of the following
on February 8, 2013, approved the Scheme of Arrangement. circumstances:
In terms of the Court approved Scheme of Arrangement, A. The normal course of business
with the filing of the copy of the Order, on March 8, 2013,
with the office of ROC, NCT of Delhi & Haryana (the Effective B. The event of default
Date), IBFSL, as a going concern, stands amalgamated with C. The event of insolvency or bankruptcy of the
IBHFL with effect from the Appointed Date, being April 1, Company and/or its counterpartie.
2012.
3 Significant accounting policies
Indiabulls Financial Services Limited (“IBFSL”) was incorporated
on January 10, 2000 as a Private Limited Company. On March 3.1 Significant accounting Judgements, estimates and
30, 2001, the Company was registered under Section 45-IA assumptions
of the Reserve Bank of India (RBI) Act, 1934 to carry on the
The preparation of Standalone financial statements
business of a Non-Banking Financial Company. The Company
in conformity with Ind AS requires the management
was converted into a public limited Company pursuant to
to make judgments, estimates and assumptions
Section 44 of the Companies Act, 1956 on February 03, 2004.
that affect the reported amounts of revenues,
The Company was incorporated on May 10, 2005. On expenses, assets and liabilities and the disclosure
December 28, 2005 the Company was registered under of contingent liabilities, at the end of the reporting
Section 29A of the National Housing Bank Act, 1987 to period. Although these estimates are based on the
commence / carry on the business of a Housing Finance management's best knowledge of current events
Institution without accepting public deposits. The Company and actions, uncertainty about these assumptions
is required to comply with provisions of the National and estimates could result in the outcomes requiring
Housing Bank Act, 1987, the Housing Finance Companies a material adjustment to the carrying amounts of
(NHB) Directions, 2010 (as amended from time to time) assets or liabilities in future periods.
| 201
NOTES
A. Impairment loss on financial assets assets and how these are managed and how the
managers of the assets are compensated. The
The measurement of impairment losses
Company monitors financial assets measured
across all categories of financial assets except
at amortised cost that are de-recognised prior
assets valued at FVTPL, enquires judgment,
to their maturity to understand the reason for
in particular, the estimation of the amount
their disposal and whether the reasons are
and timing of future cash flows and collateral
consistent with the objective of the business
values when determining impairment losses
for which the asset was held. Monitoring is
and the assessment of a significant increase
part of the Company’s continuous assessment
in credit risk. These estimates are driven by a
of whether the business model for which the
number of factors, changes in which can result
remaining financial assets are held continues
in different levels of allowances.
to be appropriate and if it is not appropriate
The Company’s expected credit loss (ECL) whether there has been a change in business
calculations are outputs of complex models model and so a prospective change to the
with a number of underlying assumptions classification of those assets.
regarding the choice of variable inputs and
C. Defined employee benefit assets and
their interdependencies. Elements of the
liabilities
ECL models that are considered accounting
judgments and estimates include: The cost of the defined benefit gratuity plan
and other post-employment benefits and the
• The Company’s model, which assigns present value of the gratuity obligation are
Probability of Defaults (PDs) determined using actuarial valuations. An
actuarial valuation involves making various
• The Company’s criteria for assessing if
assumptions that may differ from actual
there has been a significant increase developments in the future. These include
in credit risk and so allowances for the determination of the discount rate, future
financial assets should be measured on salary increases and mortality rates. Due to
a Long Term ECL (LTECL) basis the complexities involved in the valuation
and its long-term nature, a defined benefit
• The segmentation of financial assets
obligation is highly sensitive to changes in
when their ECL is assessed on a these assumptions. All assumptions are
collective basis reviewed at each reporting date.
• Development of ECL models, including D. Share Based Payments
the various formulas and the choice of
inputs Estimating fair value for share-based payment
transactions requires determination of the
• Determination of associations between most appropriate valuation model, which
macroeconomic scenarios and, is dependent on the terms and conditions
economic inputs, and the effect on PDs, of the grant. This estimate also requires
Exposure at Default (EADs) and Loss determination of the most appropriate inputs
Given Default (LGDs) to the valuation model including the expected
• Selection of forward-looking life of the share option, volatility and dividend
macroeconomic scenarios and their yield and making assumptions about them.
probability weightings, to derive the E. Fair value measurement
economic inputs into the ECL models.
When the fair values of financial assets and
B. Business Model Assumption financial liabilities recorded in the balance
Classification and measurement of financial sheet cannot be measured based on quoted
assets depends on the results of the SPPI prices in active markets, their fair value
and the business model test. The Company is measured using valuation techniques
determines the business model at a level including the DCF model. The inputs to these
that reflects how groups of financial assets models are taken from observable markets
are managed together to achieve a particular where possible, but where this is not feasible, a
business objective. This assessment includes degree of judgment is required in establishing
judgment reflecting all relevant evidence fair values. Judgments include considerations
including how the performance of the assets of inputs such as liquidity risk, credit risk and
is evaluated and their performance measured, volatility. Changes in assumptions about these
the risks that affect the performance of the factors could affect the reported fair value of
financial instruments.
202 |
NOTES
F. Effective interest rate method and is no longer credit-impaired, the Company
reverts to calculating interest income.
The Company’s EIR methodology, recognises
interest income using a rate of return that b) Interest expense
represents the best estimate of a constant
Interest expense includes issue costs that are
rate of return over the expected behavioural
initially recognized as part of the carrying value
life of loans and recognises the effect of
of the financial liability and amortized over
potentially different interest rates charged
the expected life using the effective interest
at various stages and other characteristics
method. These include fees and commissions
of the product life cycle. This estimation, by
payable to arrangers and other expenses such
nature, requires an element of judgement
as external legal costs, provided these are
regarding the expected behavior and life-cycle
incremental costs that are directly related to
of the instruments, as well expected changes
the issue of a financial liability.
to the company’s base rate and other fee
income/expense that are integral parts of the c) Other charges and other interest
instrument.
Additional interest and Overdue interest is
G. Investment in Associates recognised on realization basis.
The company accounts for its investments in d) Commission on Insurance Policies
associates as per IndAS 109 and designates
such investment as FVOCI investment Commission on insurance policies sold is
recognised when the Company under its
3.2 Cash and cash equivalents agency code sells the insurance policies and
when the same is accepted by the principal
Cash and cash equivalent comprises cash in hand,
insurance company.
demand deposits and time deposits held with bank,
debit balance in cash credit account. e) Dividend income
3.3 Recognition of income and expense Dividend income is recognized when the
Company’s right to receive the payment is
a) Interest income
established, it is probable that the economic
The Company earns revenue primarily from benefits associated with the dividend will flow
giving loans. Revenue is recognized to the to the entity and the amount of the dividend
extent that it is probable that the economic can be measured reliably. This is generally
benefits will flow to the Company and the when shareholders approve the dividend.
revenue can be reliably measured. Interest
3.4 Foreign currency
revenue is recognized using the effective
interest method (EIR). The effective interest The Company’s financial statements are presented
method calculates the amortized cost of a in Indian Rupees (INR) which is also the Company’s
financial instrument and allocates the interest functional currency.
income. The effective interest rate is the rate
that discounts estimated future cash payments Transactions in foreign currencies are initially
or receipts through the expected life of the recorded by the Company at their respective
financial instrument or, when appropriate, functional currency spot rates at the date the
a shorter period, to the gross carrying transaction first qualifies for recognition.
amount of the financial asset or liability. The Foreign currency denominated monetary assets and
calculation takes into account all contractual liabilities are translated at the functional currency
terms of the financial instrument (for example, spot rates of exchange at the reporting date and
prepayment options) and includes any fees or exchange gains and losses arising on settlement and
incremental costs that are directly attributable restatement are recognized in the statement of profit
to the instrument and are an integral part of and loss.
the EIR, but not future credit losses.
Non-monetary items that are measured in terms of
The Company calculates interest income by historical cost in a foreign currency are translated
applying the EIR to the gross carrying amount using the exchange rates at the dates of the initial
of financial assets other than credit-impaired transactions. Non-monetary items measured at fair
assets. When a financial asset becomes credit- value in a foreign currency are translated using the
impaired and is, therefore, regarded as ‘Stage exchange rates at the date when the fair value is
3’, the Company calculates the interest to the determined. The gain or loss arising on translation of
extant recoverable. If the financial assets cures non-monetary items measured at fair value is treated
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NOTES
in line with the recognition of the gain or loss on the lease commencement date because the interest
the change in fair value of the item (i.e., translation rate implicit in the lease is not readily determinable.
differences on items whose fair value gain or loss is After the commencement date, the amount of lease
recognized in OCI or profit or loss are also recognized liabilities is increased to reflect the accretion of
in OCI or profit or loss, respectively). interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
3.5 Leases
is remeasured if there is a modification, a change in
The company assesses at contract inception whether the lease term, a change in the lease payments or a
a contract is, or contains, a lease. That is, if the change in the assessment of an option to purchase
contract conveys the right to control the use of an the underlying asset.
identified asset for a period of time in exchange for
Short-term leases and leases of low-value assets
consideration.
The Company applies the short-term lease
Company as a lessee
recognition exemption to its short-term leases (i.e.,
The Company applies a single recognition and those leases that have a lease term of 12 months
measurement approach for all leases, except for or less from the commencement date and do not
short-term leases and leases of low-value assets. The contain a purchase option).
Company recognises lease liabilities to make lease
Changes in accounting policies and disclosures
payments and right-of-use assets representing the
right to use the underlying assets. Ind AS 116 Leases
Right-of-use assets Ind AS 116 supersedes Ind AS 17 Leases, Appendix C
of Ind AS 17 Determining whether an Arrangement
The Company recognises right-of-use assets at the
contains a Lease, Appendix A of Ind AS 17 Operating
commencement date of the lease (i.e., the date the
Leases-Incentives and Appendix B of Ind AS 17
underlying asset is available for use). Right-of-use
Evaluating the Substance of Transactions Involving
assets are measured at cost, less any accumulated
the Legal Form of a Lease. Ind AS 116 sets out
depreciation and impairment losses, and adjusted
the principles for the recognition, measurement,
for any remeasurement of lease liabilities. The
presentation and disclosure of leases and requires
cost of right-of-use assets includes the amount
lessees to recognise most leases on the balance
of lease liabilities recognised, initial direct costs
sheet.
incurred, and lease payments made at or before
the commencement date less any lease incentives Lessor accounting under Ind AS 116 is substantially
received. Right-of-use assets are depreciated on unchanged from Ind AS 17. Lessors will continue to
a straight-line basis over the shorter of the lease classify leases as either operating or finance leases
term and the estimated useful lives of the assets, as using similar principles as in Ind AS 17. Therefore, Ind
follows: AS 116 did not have an impact for leases where the
Company is the lessor.
• Office Premises – 1-12 Years
The Company adopted Ind AS 116 using the modified
The right-of-use assets are also subject to
retrospective method with the initial application date
impairment. Refer to the accounting policies
as April 01, 2019. Under this method, the standard
in note 3.8 Impairment of non-financial assets.
is applied retrospectively with the cumulative effect
Lease Liability of initially applying the standard recognised at the
date of initial application. The Company elected to
At the commencement date of the lease, the use the transition practical expedient to not reassess
Company recognises lease liabilities measured at the whether a contract is or contains a lease at 1 April
present value of lease payments to be made over 2019. Instead, the Company applied the standard
the lease term. The lease payments include fixed only to contracts that were previously identified as
payments less any lease incentives receivable. The leases applying Ind AS 17 and Appendix C to Ind AS
lease payments also include payments of penalties 17 at the date of initial application.
for terminating the lease, if the lease term reflects
the Company exercising the option to terminate. The standard provides specific transition
Variable lease payments that do not depend on an requirements and practical expedients, which have
index or a rate are recognised as expenses in the been applied by the Company.
period in which the event or condition that triggers
• Leases previously accounted for as operating
the payment occurs.
leases
In calculating the present value of lease payments,
The Company recognised right-of-use assets
the Company uses its incremental borrowing rate at
and lease liabilities for those leases previously
204 |
NOTES
classified as operating leases, except for with the lessor are recognized as operating leases.
short-term leases. The right-of-use assets The Company has ascertained that the payments
were recognised based on the amount to the lessor are structured to increase in line with
equal to the lease liabilities, adjusted for any expected general inflation to compensate for the
related prepaid and accrued lease payments lessor’s expected inflationary cost increases and
previously recognised. Lease liabilities were therefore, the lease payments are recognized as per
recognised based on the present value of the terms of the lease agreement in the Statement of
remaining lease payments, discounted using Profit and Loss.
the incremental borrowing rate at the date of
3.6 Property, plant and equipment (PPE) and Intangible
initial application.
assets
The Company also applied the available
PPE
practical expedients wherein it:
PPE are stated at cost (including incidental
• Used a single discount rate to a portfolio of
expenses directly attributable to bringing the asset
leases with reasonably similar characteristics
to its working condition for its intended use) less
• Applied the short-term leases exemptions to accumulated depreciation and impairment losses,
leases with lease term that ends within 12 if any. Cost comprises the purchase price and
months of the date of initial application any attributable cost of bringing the asset to its
working condition for its intended use. Subsequent
• Excluded the initial direct costs from the
expenditure related to PPE is capitalized only when it
measurement of the right-of-use asset at the
is probable that future economic benefits associated
date of initial application.
with these will flow to the Company and the cost of
• Used hindsight in determining the lease term item can be measured reliably. Other repairs and
where the contract contained options to maintenance costs are expensed off as and when
extend or terminate the lease incurred.
Significant accounting, judgements, estimates and An item of property, plant and equipment and any
assumptions significant part initially recognised is derecognised
upon disposal or when no future economic benefits
Determining the lease term of contracts with renewal are expected from its use or disposal. Any gain or loss
and termination options – Company as lessee arising on de-recognition of the asset (calculated as
The Company determines the lease term as the non- the difference between the net disposal proceeds
cancellable term of the lease, together with any and the carrying amount of the asset) is included in
periods covered by an option to extend the lease if it the statement of profit and loss when the asset is
is reasonably certain to be exercised, or any periods derecognised.
covered by an option to terminate the lease, if it is Intangible assets
reasonably certain not to be exercised.
Intangible assets acquired separately are measured
Leases - Estimating the incremental borrowing rate on initial recognition at cost. Following initial
The Company cannot readily determine the interest recognition, intangible assets are carried at cost less
rate implicit in the lease, therefore, it uses its any accumulated amortisation and accumulated
incremental borrowing rate (IBR) to measure lease impairment losses.
liabilities. The IBR is the rate of interest that the 3.7 Depreciation and amortization
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary Depreciation
to obtain an asset of a similar value to the right-of-
Depreciation on tangible fixed assets is provided on
use asset in a similar economic environment. The IBR
straight-line method as per the useful life prescribed
therefore reflects what the Company ‘would have to
in Schedule II to the Companies Act, 2013, except for
pay’, which requires estimation when no observable
Vehicles.
rates are available or when they need to be adjusted
to reflect the terms and conditions of the lease. Vehicles are amortised on a straight line basis over
a period of five years from the date when the assets
Accounting Policy for the Comparative Period i.e. 31
are available for use. The life has been assessed
March 2019
based on past usage experience and considering the
Operating Leases change in technology.
Lease arrangements where the risks and rewards Depreciation on additions to fixed assets is provided
incidental to ownership of an asset substantially vest on a pro-rata basis from the date the asset is put to
| 205
NOTES
use. Leasehold improvements are amortised over 3.10 Retirement and other employee benefits
the period of Lease. Depreciation on sale / deduction
Retirement benefit in the form of provident fund
from fixed assets is provided for up to the date of sale
and Employee State Insurance Scheme is a defined
/ deduction, as the case may be.
contribution scheme. The Company has no obligation,
The residual values, useful lives and methods of other than the contribution payable to the provident
depreciation of property, plant and equipment are fund and Employee State Insurance scheme. The
reviewed at each financial year end and adjusted Company recognizes contribution payable to the
prospectively, if appropriate provident fund and Employee State Insurance
scheme as an expense, when an employee renders
Amortization
the related service. If the contribution payable to
Intangible assets consisting of Software are amortised the scheme for service received before the balance
on a straight line basis over a period of four years sheet date exceeds the contribution already paid,
from the date when the assets are available for the deficit payable to the scheme is recognized as
use. The amortisation period and the amortisation a liability after deducting the contribution already
method for these softwares with a finite useful life paid. If the contribution already paid exceeds the
are reviewed at least at each financial year-end. contribution due for services received before the
balance sheet date, then excess is recognized as an
3.8 Impairment of non-financial assets asset to the extent that the pre-payment will lead to,
The carrying amount of assets is reviewed at each for example, a reduction in future payment or a cash
balance sheet date if there is any indication of refund.
impairment based on internal/external factors. An The Company has unfunded defined benefit plans
impairment loss is recognised wherever the carrying Gratuity plan and Compensated absences plan
amount of an asset exceeds its recoverable amount. for all eligible employees, the liability for which
The recoverable amount is the greater of the assets, is determined on the basis of actuarial valuation
net selling price and value in use. In assessing value in at each year end. Separate actuarial valuation is
use, the estimated future cash flows are discounted carried out for each plan using the projected unit
to their present value using a pre-tax discount rate credit method. Superannuation (Pension & Medical
that reflects current market assessments of the coverage) payable to a Director on retirement is also
time value of money and risks specific to the asset. actuarially valued at the end of the year using the
In determining net selling price, recent market Projected Unit Credit Method.
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate Remeasurements, comprising of actuarial gains
valuation model is used. and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
After impairment, depreciation is provided on benefit liability and the return on plan assets
the revised carrying amount of the asset over its (excluding amounts included in net interest on the net
remaining useful life. defined benefit liability), are recognised immediately
3.9 Provisions, Contingent Liability and Contingent in the balance sheet with a corresponding debit
Assets or credit to retained earnings through OCI in the
period in which they occur. Remeasurements are not
A provision is recognised when the Company has reclassified to profit or loss in subsequent periods.
a present obligation as a result of past events and
it is probable that an outflow of resources will be 3.11 Taxes
required to settle the obligation in respect of which a Tax expense comprises current and deferred tax.
reliable estimate can be made. Provisions (excluding
retirement benefits) are not discounted to their Current income tax
present value and are determined based on the
Current income tax assets and liabilities are measured
best estimate required to settle the obligation at the
at the amount expected to be recovered from or paid
balance sheet date. Contingent liability is disclosed
to the taxation authorities in accordance with Income
for (1) Possible obligations which will be confirmed
tax Act, 1961, Income Computation and Disclosure
only by future events not wholly within the control
Standards and other applicable tax laws. The tax
of the Company or (2) Present obligations arising
rates and tax laws used to compute the amount are
from past events where it is not probable that an
those that are enacted at the reporting date.
outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the Current income tax relating to items recognised
obligation cannot be made. Contingent Assets are outside profit or loss is recognised outside profit
not recognised in the financial statements. or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
206 |
NOTES
correlation to the underlying transaction either in shareholders by the weighted average number of
OCI or directly in equity. equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an
Minimum Alternate Tax (MAT) paid in accordance
equity share to the extent that they are entitled to
with the tax laws, which during the specified
participate in dividends relative to a fully paid equity
period gives future economic benefits in the form
share during the reporting year.
of adjustment to future income tax liability, is
considered as an asset if there is convincing evidence For the purpose of calculating diluted earnings per
that the Company will pay normal income tax. share, the net profit or loss for the year attributable
Accordingly, MAT is recognised as an asset in the to equity shareholders and the weighted average
Balance Sheet when it is highly probable that future number of shares outstanding during the period are
economic benefit associated with it will flow to the adjusted for the effects of all dilutive potential equity
Company. shares.
Deferred tax 3.13 Share based payments
Deferred tax is provided using the liability method Equity-settled share based payments to employees
on temporary differences between the tax bases of and others providing similar services are measured
assets and liabilities and their carrying amounts for at the fair value of the equity instruments at the
financial reporting purposes at the reporting date. grant date.
Deferred tax assets are recognised for all deductible The fair value determined at the grant date of the
temporary differences, the carry forward of unused equity-settled share based payments is expensed on
tax credits and any unused tax losses. Deferred tax a straight line basis over the vesting period, based on
assets are recognised to the extent that it is probable the Company`s estimate of equity instruments that
that taxable profit will be available against which will eventually vest, with a corresponding increase
the deductible temporary differences, and the carry in equity. At the end of each reporting period, the
forward of unused tax credits and unused tax losses Company revises its estimate of the number of
can be utilised. equity instruments expected to vest. The impact
of the revision of the original estimates, if any, is
The carrying amount of deferred tax assets is
recognised in Statement of Profit and Loss such
reviewed at each reporting date and reduced to the
that the cumulative expenses reflects the revised
extent that it is no longer probable that sufficient
estimate, with a corresponding adjustment to the
taxable profit will be available to allow all or part of
Stock Compensation Adjustment Reserve.
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting The dilutive effect of outstanding options is reflected
date and are recognised to the extent that it has as additional share dilution in the computation of
become probable that future taxable profits will diluted earnings per share.
allow the deferred tax asset to be recovered.
3.14 Financial instruments
Deferred tax assets and liabilities are measured at the
A financial instrument is any contract that gives
tax rates that are expected to apply in the year when
rise to a financial asset of one entity and a financial
the asset is realised or the liability is settled, based
liability or equity instrument of another entity.
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. 3.14.1 Financial Assets
Deferred tax relating to items recognised outside 3.14.1.1 Initial recognition and measurement
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Financial assets, with the exception of loans and
Deferred tax items are recognised in correlation to advances to customers, are initially recognised
the underlying transaction either in OCI or directly in on the trade date, i.e., the date that the Company
equity. becomes a party to the contractual provisions of
the instrument. Loans and advances to customers
Deferred tax assets and deferred tax liabilities are are recognised when funds are disbursed to the
offset if a legally enforceable right exists to set off customers. The classification of financial instruments
current tax assets against current tax liabilities and at initial recognition depends on their purpose and
the deferred taxes relate to the same taxable entity characteristics and the management’s intention
and the same taxation authority. when acquiring them. All financial assets are
recognised initially at fair value plus, in the case of
3.12 Earning per share
financial assets not recorded at fair value through
Basic earnings per share are calculated by dividing the profit or loss, transaction costs that are attributable
net profit or loss for the year attributable to equity to the acquisition of the financial asset.
| 207
NOTES
3.14.1.2Classification and Subsequent measurement After initial measurement, such financial assets are
subsequently measured at amortised cost using the
For purposes of subsequent measurement, financial
effective interest rate (EIR) method less impairment.
assets are classified in four categories:
Amortised cost is calculated by taking into account
• Debt instruments at amortised cost any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
• Debt instruments at fair value through other amortisation is included in interest income in the
comprehensive income (FVTOCI) statement of profit or loss. The losses arising from
• Debt instruments and equity instruments at impairment are recognised in the statement of profit
fair value through profit or loss (FVTPL) and loss.
• Equity instruments measured at fair value 3.14.1.4 Debt instruments at FVOCI

through other comprehensive income A ‘debt instrument’ is classified as at the FVTOCI if
(FVTOCI) both of the following criteria are met:
3.14.1.3 Debt instruments at amortised costs The objective of the business model is achieved both
A ‘debt instrument’ is measured at the amortised by collecting contractual cash flows and fair value
cost if both the following conditions are met: changes relating to market movements selling the
financial assets, and The asset’s contractual cash
• The asset is held within a business model flows represent SPPI.
whose objective is to hold assets for collecting
contractual cash flows, and Debt instruments included within the FVTOCI
category are measured initially as well as at each
• Contractual terms of the asset give rise on reporting date at fair value. Fair value movements are
specified dates to cash flows that are solely recognized in the other comprehensive income (OCI).
payments of principal and interest (SPPI) on However, the Company recognizes interest income,
the principal amount outstanding. impairment losses & reversals and foreign exchange
Business model: The business model reflects how the gain or loss in the Statement of Profit and Loss. On
Company manages the assets in order to generate derecognition of the asset, cumulative gain or loss
cash flows. That is, where the Company’s objective is previously recognised in OCI is reclassified from
solely to collect the contractual cash flows from the the equity to Statement of Profit and Loss. Interest
assets, the same is measured at amortized cost or earned whilst holding FVTOCI debt instrument is
where the Company’s objective is to collect both the reported as interest income using the EIR method.
contractual cash flows and cash flows arising from 3.14.1.5 Debt instruments at FVTPL
the sale of assets, the same is measured at fair value
through other comprehensive income (FVTOCI). If FVTPL is a residual category for debt instruments.
neither of these is applicable (e.g. financial assets are Any debt instrument, which does not meet the
held for trading purposes), then the financial assets criteria for categorization as at amortized cost or as
are classified as part of ‘other’ business model and FVTOCI, is classified as at FVTPL.
measured at FVPL. In addition, the company may elect to designate a
SPPI: Where the business model is to hold assets to debt instrument, which otherwise meets amortized
collect and earn contractual cash flows (i.e. measured cost or FVTOCI criteria, as at FVTPL. However,
at amortized cost), the Company assesses whether such election is allowed only if doing so reduces
the financial instruments’ cash flows represent solely or eliminates a measurement or recognition
payments of principal and interest (the ‘SPPI test’). inconsistency (referred to as ‘accounting mismatch’).
In making this assessment, the Company considers Debt instruments included within the FVTPL category
whether the contractual cash flows are consistent are measured at fair value with all changes recognized
with a basic lending arrangement i.e. interest includes in the Statement of Profit and Loss.
only consideration for the time value of money, credit 3.14.1.6 Equity Investments
risk, other basic lending risks and a profit margin
that is consistent with a basic lending arrangement. All equity investments in scope of Ind AS 109 are
Where the contractual terms introduce exposure to measured at fair value. Equity instruments which
risk or volatility that are inconsistent with a basic are held for trading classified as at FVTPL. For
lending arrangement, the related financial asset is all other equity instruments, the Company may
classified and measured at fair value through profit make an irrevocable election to present in other
or loss. The amortized cost, as mentioned above, is comprehensive income subsequent changes in the
computed using the effective interest rate method. fair value. The Company makes such election on an
instrument-by- instrument basis. The classification is
208 |
NOTES
made on initial recognition and is irrevocable. 3.14.4 Reclassification of financial assets and
liabilities
If the company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on The company doesn’t reclassify its financial assets
the instrument, excluding dividends, are recognized subsequent to their initial recognition, apart from
in the OCI. There is no recycling of the amounts from the exceptional circumstances in which the company
Other Comprehensive Income to Statement of Profit acquires, disposes of, or terminates a business line.
and Loss, even on sale of investment. However, the Financial liabilities are never reclassified.
company may transfer the cumulative gain or loss
3.14.5 De recognition of financial assets and liabilities
within equity.
3.14.5.1 Financial Assets
Equity instruments included within the FVTPL
category are measured at fair value with all changes A financial asset (or, where applicable, a part of a
recognized in the Statement of Profit and Loss. financial asset or part of a group of similar financial
assets) is de-recognised when the rights to receive
3.14.2 Financial Liabilities
cash flows from the financial asset have expired. The
3.14.2.1 Initial recognition and measurement Company also de-recognised the financial asset if it
has transferred the financial asset and the transfer
Financial liabilities are classified and measured
qualifies for de recognition.
at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for The Company has transferred the financial asset if,
trading or it is designated as on initial recognition. All and only if, either:
financial liabilities are recognised initially at fair value
• It has transferred its contractual rights to
and, in the case of borrowings and payables, net of
receive cash flows from the financial asset, or
directly attributable transaction costs.
• It retains the rights to the cash flows, but has
The company’s financial liabilities include trade and
assumed an obligation to pay the received cash
other payables, loans and borrowings including bank
flows in full without material delay to a third
overdrafts and derivative financial instruments.
party under a ‘pass-through’ arrangement
3.14.2.2 Borrowings
Pass-through arrangements are transactions
After initial recognition, interest-bearing borrowings whereby the Company retains the contractual
are subsequently measured at amortised cost using rights to receive the cash flows of a financial
the EIR method. Gains and losses are recognised in asset (the 'original asset'), but assumes a
Statement of Profit and Loss when the liabilities are contractual obligation to pay those cash
derecognised as well as through the EIR amortisation flows to one or more entities (the 'eventual
process. recipients'), when all of the following three
conditions are met:
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees • The Company has no obligation to pay
or costs that are an integral part of the EIR. The amounts to the eventual recipients unless it
EIR amortisation is included as finance costs in the has collected equivalent amounts from the
statement of profit and loss. This category generally original asset, excluding short-term advances
applies to borrowings. with the right to full recovery of the amount
lent plus accrued interest at market rates.
3.14.3 Derivative financial instruments
• The Company cannot sell or pledge the original
The Company holds derivatives to mitigate the risk
asset other than as security to the eventual
of changes in exchange rates on foreign currency
recipients.
exposures as well as interest fluctuations. The
counterparty for these contracts is generally a bank. • The Company has to remit any cash flows it
Derivatives that are not designated a hedge are collects on behalf of the eventual recipients
categorized as financial assets or financial liabilities, without material delay..
at fair value through profit or loss. Such derivatives
In addition, the Company is not entitled to reinvest
are recognized initially at fair value and attributable
such cash flows, except for investments in cash or
transaction costs are recognized in the Statement of
cash equivalents including interest earned, during
Profit and Loss when incurred. Subsequent to initial
the period between the collection date and the date
recognition, these derivatives are measured at fair
of required remittance to the eventual recipients.
value through profit or loss and the resulting gains or
losses are included in Statement of Profit and Loss. A transfer only qualifies for derecognition if either:
| 209
NOTES
• The Company has transferred substantially all financial assets not held at FVTPL, together with loan
the risks and rewards of the asset, Or commitments and financial guarantee contracts, (in
this section all referred to as ‘financial instruments’).
• The Company has neither transferred nor
Equity instruments are not subject to impairment
retained substantially all the risks and rewards
under IND AS 109.
of the asset, but has transferred control of the
asset. The ECL allowance is based on the credit losses
expected to arise over the life of the asset (the
The Company considers control to be transferred if
lifetime expected credit loss or LTECL), unless there
and only if, the transferee has the practical ability
has been no significant increase in credit risk since
to sell the asset in its entirety to an unrelated third
origination, in which case, the allowance is based
party and is able to exercise that ability unilaterally
on the 12 months’ expected credit loss (12mECL) as
and without imposing additional restrictions on the
outlined in Note 3.15.2). The 12mECL is the portion of
transfer.
LTECL that represent the ECL that result from default
When the Company has neither transferred nor events on a financial instrument that are possible
retained substantially all the risks and rewards and within the 12 months after the reporting date.
has retained control of the asset, the asset continues
Both LTECL and 12mECL are calculated on individual
to be recognised only to the extent of the Company's
and collective basis, depending on the nature of
continuing involvement, in which case, the Company
the underlying portfolio of financial instruments.
also recognises an associated liability. The transferred
The Company has established a policy to perform
asset and the associated liability are measured on a
an assessment, at the end of each reporting period,
basis that reflects the rights and obligations that the
of whether a financial instrument’s credit risk has
Company has retained.
increased significantly since initial recognition..
Continuing involvement that takes the form of a
Based on the above process, the Company groups
guarantee over the transferred asset is measured
its loans into Stage 1, Stage 2, Stage 3, as described
at the lower of the original carrying amount of the
below:
asset and the maximum amount of consideration the
Company could be required to pay. Stage 1 : When loans are first recognised, the
Company recognises an allowance based on 12mECL.
If continuing involvement takes the form of a written
Stage 1 loans also include facilities where the credit
or purchased option (or both) on the transferred
risk has improved and the loan has been reclassified
asset, the continuing involvement is measured at the
from Stage 2 or Stage 3.
value the Company would be required to pay upon
repurchase. In the case of a written put option on Stage 2: When a loan has shown a significant increase
an asset that is measured at fair value, the extent in credit risk since origination, the company records
of the entity's continuing involvement is limited to an allowance for the LTECL. Stage 2 loans also include
the lower of the fair value of the transferred asset facilities, where the credit risk has improved and the
and the option exercise price. The profit or loss on loan has been reclassified from Stage 3.
derecognition is recognized in the Statement of
Stage 3: Loans considered credit-impaired. The
profit and loss.
Company records an allowance for the LTECL.
3.14.5.2 Financial Liabilities
3.15.2 The calculation of ECL
A financial liability is derecognised when the
The Company calculates ECL based on a probability-
obligation under the liability is discharged, cancelled
weighted scenarios and historical data to measure
or expires. Where an existing financial liability
the expected cash shortfalls, discounted at an
is replaced by another from the same lender on
approximation to the EIR. A cash shortfall is the
substantially different terms or the terms of an
difference between the cash flows that are due to an
existing liability are substantially modified, such an
entity in accordance with the contract and the cash
exchange or modification is treated as a derecognition
flows that the entity expects to receive.
of the original liability and the recognition of a new
liability. The difference between the carrying value of The mechanics of the ECL calculations are outlined
the original financial liability and the consideration below and the key elements are, as follows:
paid is recognised in profit or loss.
• PD - The Probability of Default is an estimate
3.15 Impairment of financial assets of the likelihood of default over a given time
horizon. A default may only happen at a
3.15.1 Overview of the ECL principles
certain time over the assessed period, if the
The Company is recording the allowance for facility has not been previously derecognised
expected credit losses for all loans and other debt and is still in the portfolio.
210 |
NOTES
• EAD - The Exposure at Default is an exposure determined by the Company based on its internal
at a default date. data. While the internal estimates of PD, LGD rates
by the Company may not be always reflective of such
• LGD - The Loss Given Default is an estimate
relationships, temporary overlays are embedded in
of the loss arising in the case where a default
the methodology to reflect such macro-economic
occurs at a given time. It is based on the
trends reasonably.
difference between the contractual cash flows
due and those that the lender would expect 3.15.4 Write-offs
to receive, including from the realisation of
Financial assets are written off partially or in their
any collateral. It is usually expressed as a
entirety when the recovery of amounts due is
percentage of the EAD.
considered unlikely. If the amount to be written
The maximum period for which the credit losses off is greater than the accumulated loss allowance,
are determined is the expected life of a financial the difference is first treated as an addition to the
instrument. allowance that is then applied against the gross
carrying amount. Any subsequent recoveries are
The mechanics of the ECL method are summarised
credited to Statement of Profit and Loss.
below:
3.16 Fair value measurement
Stage 1: The 12mECL is calculated as the portion of
LTECL that represent the ECL that result from default The Company measures financial instruments, such
events on a financial instrument that are possible as, derivatives at fair value at each balance sheet
within the 12 months after the reporting date. The date using valuation techniques.
Company calculates the 12mECL allowance based
Fair value is the price that would be received to sell
on the expectation of a default occurring in the 12
an asset or paid to transfer a liability in an orderly
months following the reporting date. These expected
transaction between market participants at the
12-month default probabilities are applied to an EAD
measurement date. The fair value measurement is
and multiplied by the expected LGD.
based on the presumption that the transaction to sell
Stage 2: When a loan has shown a significant increase the asset or transfer the liability takes place either:
in credit risk since origination, the Company records
• In the principal market for the asset or liability,
an allowance for the LTECL. The mechanics are
or
similar to those explained above, but PDs and LGDs
are estimated over the lifetime of the instrument. • In the absence of a principal market, in the
most advantageous market for the asset or
Stage 3: For loans considered credit-impaired , the
liability
Company recognizes the lifetime expected credit
losses for these loans. The method is similar to that The principal or the most advantageous market must
for Stage 2 assets, with the PD set at 100%. be accessible by the Company. The fair value of an
asset or a liability is measured using the assumptions
Loan commitments: When estimating LTECL for
that market participants would use when pricing the
undrawn loan commitments, the Company estimates
asset or liability, assuming that market participants
the expected portion of the loan commitment that
act in their economic best interest. A fair value
will be drawn down over its expected life. The ECL
measurement of a non-financial asset takes into
is then based on the present value of the expected
account a market participant’s ability to generate
shortfalls in cash flows if the loan is drawn down.
economic benefits by using the asset in its highest
The expected cash shortfalls are discounted at an
and best use or by selling it to another market
approximation to the expected EIR on the loan.
participant that would use the asset in its highest and
For loan commitments, the ECL is recognised within best use.
Provisions.
The Company uses valuation techniques that are
3.15.3 Forward looking information appropriate in the circumstances and for which
sufficient data are available to measure fair value,
While estimating the expected credit losses, the
maximising the use of relevant observable inputs and
Company reviews macro-economic developments
minimising the use of unobservable inputs.
occurring in the economy and market it operates in.
On a periodic basis, the Company analyses if there All assets and liabilities for which fair value is
is any relationship between key economic trends measured or disclosed in the financial statements are
like GDP, Property Price Index, Unemployment categorised within the fair value hierarchy, described
rates, Benchmark rates set by the Reserve Bank of as follows, based on the lowest level input that is
India, inflation etc. with the estimate of PD, LGD significant to the fair value measurement as a whole:
| 211
NOTES
• Level 1 — Quoted (unadjusted) market prices Hedges that meet the strict criteria for hedge
in active markets for identical assets or accounting are accounted for, as described below.
liabilities
3.18.1 Fair value hedges
• Level 2 — Valuation techniques for which the
Fair value hedges hedge the exposure to changes
lowest level input that is significant to the fair
in the fair value of a recognised asset or liability or
value measurement is directly or indirectly
an unrecognised firm commitment, or an identified
observable
portion of such an asset, liability or firm commitment,
• Level 3 — Valuation techniques for which the that is attributable to a particular risk and could
lowest level input that is significant to the fair affect profit or loss.
value measurement is unobservable
For designated and qualifying fair value hedges, the
For assets and liabilities that are recognised in cumulative change in the fair value of a hedging
the financial statements on a recurring basis, the derivative is recognised in the statement of profit and
Company determines whether transfers have loss in net gain on fair value changes. Meanwhile, the
occurred between levels in the hierarchy by re- cumulative change in the fair value of the hedged
assessing categorisation (based on the lowest level item attributable to the risk hedged is recorded as
input that is significant to the fair value measurement part of the carrying value of the hedged item in the
as a whole) at the end of each reporting period. balance sheet and is also recognised in the statement
of profit and loss in net gain on fair value changes.
3.17 Dividend
The Company classifies a fair value hedge relationship
The Company recognises a liability to make cash
when the hedged item (or group of items) is a
distributions to equity holders when the distribution
distinctively identifiable asset or liability hedged
is authorised and the distribution is no longer at the
by one or a few hedging instruments. The financial
discretion of the Company. Final dividends on shares
instruments hedged for interest rate risk in a fair
are recorded as a liability on the date of approval by
value hedge relationships fixed rate debt issued and
the shareholders and interim dividends are recorded
other borrowed funds.
as a liability on the date of declaration by the
Company’s Board of Directors. If the hedging instrument expires or is sold, terminated
or exercised, or where the hedge no longer meets the
3.18 Hedging
criteria for hedge accounting, the hedge relationship
The Company makes use of derivative instruments is discontinued prospectively. If the relationship
to manage exposures to interest rate and foreign does not meet hedge effectiveness criteria, the
currency. In order to manage particular risks, the Company discontinues hedge accounting from the
Company applies hedge accounting for transactions date on which the qualifying criteria are no longer
that meet specified criteria. met. For hedged items recorded at amortised cost,
the accumulated fair value hedge adjustment to the
At the inception of a hedge relationship, the carrying amount of the hedged item on termination
Company formally designates and documents the of the hedge accounting relationship is amortised
hedge relationship to which the Company wishes to over the remaining term of the original hedge using
apply hedge accounting and the risk management the recalculated EIR method by recalculating the
objective and strategy for undertaking the hedge. EIR at the date when the amortisation begins. If the
The documentation includes the Company’s risk hedged item is derecognised, the unamortised fair
management objective and strategy for undertaking value adjustment is recognised immediately in the
hedge, the hedging/ economic relationship, the statement of profit and loss..
hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will 3.18.2 Cash flow hedges
assess the effectiveness of changes in the hedging
A cash flow hedge is a hedge of the exposure to
instrument’s fair value in offsetting the exposure to
variability in cash flows that is attributable to a
changes in the hedged item’s fair value or cash flows
particular risk associated with a recognised asset or
attributable to the hedged risk. Such hedges are
liability (such as all or some future interest payments
expected to be highly effective in achieving offsetting
on variable rate debt) or a highly probable forecast
changes in fair value or cash flows and are assessed
transaction and could affect profit or loss.
on an ongoing basis to determine that they actually
have been highly effective throughout the financial For designated and qualifying cash flow hedges, the
reporting periods for which they were designated. effective portion of the cumulative gain or loss on
the hedging instrument is initially recognised directly
in OCI within equity (cash flow hedge reserve). The
ineffective portion of the gain or loss on the hedging
212 |
NOTES
instrument is recognised immediately in net gain/ 3.18.3 Cost of hedging
loss on fair value changes in the profit and loss
The Company may separate forward element and the
statement.
spot element of a forward contract and designate as
When the hedged cash flow affects the statement the hedging instrument only the change in the value
of profit and loss, the effective portion of the gain of the spot element of a forward contract. Similarly
or loss on the hedging instrument is recorded in currency basis spread may be separated and excluded
the corresponding income or expense line of the from the designation of a financial instrument as the
statement of profit and loss. When the forecast hedging instrument.
transaction subsequently results in the recognition
When an entity separates the forward element
of a non-financial asset or a non-financial liability,
and the spot element of a forward contract and
the gains and losses previously recognised in OCI are
designates as the hedging instrument only the change
reversed and included in the initial cost of the asset
in the value of the spot element of the forward
or liability.
contract, or when an entity separates the foreign
When a hedging instrument expires, is sold, currency basis spread from a financial instrument
terminated, exercised, or when a hedge no longer and excludes it from the designation of that financial
meets the criteria for hedge accounting, any instrument as the hedging instrument, such amount
cumulative gain or loss that has been recognised in is recognised in Other Comprehensive Income and
OCI at that time re-mains in OCI and is recognised accumulated as a separate component of equity
when the hedged forecast transaction is ultimately under Cost of hedging reserve. These amounts are
recognised in the statement of profit and loss. When reclassified to the statement of profit or loss account
a forecast transaction is no longer expected to occur, as a reclassification adjustment in the same period
the cumulative gain or loss that was reported in OCI or periods during which the hedged cash flows affect
is immediately transferred to the statement of profit profit or loss.
and loss.
| 213
NOTES
(4) Cash and cash equivalents
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Cash-on-Hand 0.24 4.37
Balance with banks
In Current accounts# 9,546.86 10,364.25
Bank Deposits 1,944.50 2,987.97
Total 11,491.60 13,356.59
# includes Rs. 4.67 Crore (Previous Year Rs. 4.65 Crore) in designated unclaimed dividend accounts.
(5) Bank Balance other than cash and cash equivalents
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Balances with banks to the extent held as margin money or security against the 1,421.69 665.90
borrowings, guarantees, other commitments(1)
Total 1,421.69 665.90
(1) Deposits accounts with bank are held as Margin Money/ are under lien. The Company has the complete beneficial interest
on the income earned from these deposits.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Balances with banks:
In current accounts 9,546.86 10,364.25
Bank Deposits 1,944.50 2,987.97
Cash on hand 0.24 4.37
Total 11,491.60 13,356.59
(6) Derivative financial instruments

Amount Amount
- Currency swaps 3,075.89 468.56 - -
(i) 7,730.62 732.73 6.08 -
Interest rate derivatives - Interest Rate Swaps 936.55 6.45 2,285.21 187.82
(ii) 936.55 6.45 2,285.21 187.82
214 |
NOTES
Part II As at March 31, 2020
Amount Amount
Fair value hedging:
(i) - - - -
Cash flow hedging:
- Currency swaps 3,075.89 468.56 - -
- Currency options 383.24 25.81
- Interest rate derivatives - - 2,285.21 186.48
(ii) 7,730.62 732.73 2,291.29 186.48
Undesignated derivatives (iii) 936.55 6.45 - 1.34

Amount Amount
- Currency swaps 1,525.27 122.63 1,650.63 13.39
(i) 1,625.27 123.50 3,917.66 48.35
Interest rate derivatives - Interest Rate Swaps 3,891.17 12.25 17,321.45 57.61
(ii) 3,891.17 12.25 17,321.45 57.61
Fair value hedging:
(i) - - - -
Cash flow hedging:
- Currency swaps 1,525.27 122.63 1,650.63 13.39
- Interest rate derivatives 204.62 3.55 2,182.90 53.72
(ii) 1,829.89 127.05 6,100.56 102.07
Undesignated derivatives (iii) 3,686.55 8.70 15,138.55 3.89
| 215
NOTES
6.1 Hedging activities and derivatives
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are interest rate risk and foreign currency risk.
6.1.1 Derivatives not designated as hedging instruments
The Company uses interest rate swaps to manage its interest rate risk arising from INR denominated borrowings . The interest rate
swaps are not designated in a hedging relationship and are entered into for periods consistent with exposure of the underlying
transactions.
6.1.2 Derivatives designated as hedging instruments
a. Cash flow hedges
The foreign currency and interest rate risk on borrowings have been actively hedged through a combination of forward
contracts, principal only swaps and interest rate swaps
The company is exposed to interest rate risk arising from its foreign currency borrowings amounting to $ 717,630,447
(Previous Year $ 734,297,113). Interest on the borrowing is payable at a floating rate linked to USD LIBOR. The company
economically hedged the interest rate risk arising from the debt with a ‘receive floating pay fixed’ interest rate swap
(‘swap’).
The Company uses Interest Rate Swaps (IRS) Contracts (Floating to Fixed) to hedge its risks associated with interest rate
fluctuations relating interest rate risk arising from foreign currency loans / external commercial borrowings. The Company
designates such IRS contracts in a cash flow hedging relationship by applying the hedge accounting principles as per IND AS
109. These IRS contracts are stated at fair value at each reporting date. Changes in the fair value of these IRS contracts that
are designated and effective as hedges of future cash flows are recognised directly in “Cash Flow Hedge Reserve” under
Reserves and surplus and the ineffective portion is recognised immediately in the Statement of Profit and Loss. Hedge
accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies
for hedge accounting.
The Company also hedges foreign currency risk arising from its fixed rate foreign currency bond by entering into the
Forward Contracts and Principal Only Swaps. There is an economic relationship between the hedged item and the hedging
instrument as the terms of the Forward contracts/Principal Only Swaps match that of the foreign currency borrowing
(notional amount, interest payment dates, principal repayment date etc.). The Company has established a hedge ratio of
1:1 for the hedging relationships as the underlying risk of the Forward contracts/Cross currency swap are identical to the
hedged risk components.

statement of value
financial position
Financial Asset/
Liability

statement of value
financial position
Financial Asset/
Liability
Change in fair Cash flow Cost of Cash flow Cost of

value hedge reserve hedging as hedge reserve hedging as
as at March at March 31, as at March at March 31,
31, 2020 2020 31, 2019 2019
The impact of hedged item (126.11) (322.73) - (196.62) -
216 |
NOTES

OCI
Effect of Cash flow hedge (126.11) (0.82) Finance cost

OCI
Effect of Cash flow hedge 52.75 (4.53) Finance cost
b. Fair value hedge
The Company uses IRS instruments to convert a proportion of its fixed rate debt to floating rates in order to hedge the
interest rate risk arising, principally, from issue of non-convertible debentures. Company designates these as fair value
hedges of interest rate risk. Changes in the fair values of derivatives designated as fair value hedges and changes in fair
value of the related hedged item are recognised directly in Statement of Profit and Loss thus ineffective portion being
recognised in the Statement of Profit and Loss.
(7) Trade Receivables
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Unsecured considered good 5.32 12.12
Receivables which have significant increase in credit risk - -
Receivables – credit impaired - -
5.32 12.12
(8) Loans
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Term Loans (Net of Assignment) (1) to (4) 62,562.56 77,814.30
Less: Impairment loss allowance 3,469.19 929.94
Total (A) Net 59,093.37 76,884.36
Secured by tangible assets and intangible assets (2),(3) & (4)
60,786.25 77,632.37
Unsecured 1,776.31 181.93
Total (B) Net 59,093.37 76,884.36
(C) (I) Loans in India
Others 62,562.56 77,814.30
Total (C )(I) Net 59,093.37 76,884.36
(C) (II)Loans outside India - -
Less: Impairment loss allowance - -
Total (C )(II) Net - -
Total C (I) and C (II) 59,093.37 76,884.36
| 217
NOTES
As at As at
March 31, 2020 March 31, 2019
Amount Amount
(1) Term Loans(Net of Assignment):
Total Term Loans 81,223.07 104,160.32
Less: Loans Assigned 19,392.48 27,310.42
61,830.59 76,849.90
Add: Interest Accrued on Loans 731.97 964.40
Term Loans(Net of Assignment) 62,562.56 77,814.30
(2) Secured Loans and Other Credit Facilities given to customers are secured / partly secured by :
(a) Equitable mortgage of property and / or,
(b) Pledge of shares / debentures, units, other securities, assignment of life insurance policies and / or,
(c) Hypothecation of assets and / or,
(d) Company guarantees and / or,
(e) Personal guarantees and / or,
(f) Negative lien and / or Undertaking to create a security.
(3) Includes Loan to Subsidiary for Rs. 588.42 Crore (March 31, 2019 Rs. 247.00 Crore).
(4) Impairment allowance for loans and advances to customers
IHFL’s Analytics Department has designed and operates its Internal Rating Model. The model is tested and calibrated
periodically. The model grades loans on a four-point grading scale, and incorporates both quantitative as well as qualitative
information on the loans and the borrowers. The model uses historical empirical data to arrive at factors that are indicative
of future credit risk and segments the portfolio on the basis of combinations of these parameters into smaller homogenous
portfolios from the perspective of credit behaviour. Some of the factors that the internal risk based model may consider are:
a) Loan to value
b) Type of collateral
c) Cash-flow and income assessment of the borrower
d) Interest and debt service cover
e) Repayment track record of the borrower
f) Vintage i.e. months on books and number of paid EMIs
g) Project progress in case of project finance
In addition to information specific to the borrower and the performance of the loan, the model may also utilise supplemental
external information that could affect the borrower’s behaviour. The model is also calibrated to incorporate external inputs
such as GDP growth rate, unemployment rate and factors specific to the sector/industry of the borrower.
218 |
NOTES
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit
rating system and year-end stage classification.*

Amount
Very Good 39,278.11 - - 39,278.11
Good 1,862.72 16,709.97 - 18,572.69
Average - 2,614.67 - 2,614.67
Non-performing - - 1,365.12 1,365.12
Grand Total 41,140.83 19,324.64 1,365.12 61,830.59

Amount
Very Good 68,206.48 - - 68,206.48
Good 3,115.87 2,900.47 - 6,016.34
Average - 1,763.38 - 1,763.38
Non-performing - - 863.70 863.70
Grand Total 71,322.35 4,663.85 863.70 76,849.90
*The above table does not include the amount of interest accrued but not due in all the years
An analysis of changes in the ECL allowances in relation to Loans & advances is, as follows:
Amount
ECL allowance opening balance 139.13 610.92 179.89 929.94
ECL on assets added/ change in ECL 710.46 1,821.12 71.39 2,602.97
estimates
Assets derecognised or repaid( including (32.79) (30.93) - (63.72)
Transfers from Stage 1 (334.67) 143.34 191.32 (0.01)
Transfers from Stage 3 0.02 0.01 (0.03) -
ECL allowance closing balance 483.65 2,504.53 481.01 3,469.19
The increase in ECL of the portfolio is explained by an increase in the amount of loans classified as Stage II and Stage III after
factoring stress scenario of general economic conditions.
The Company has adopted a conservative approach to expected credit loss (ECL) staging and accounts have been categorized
as Stage 2 based on analysis of stress in particular industry segments – even if the loan accounts are regular in debt
servicing.
IndAS ECL guidelines also do not permit creation of unattached ad-hoc provisions outside of the analytically computed ECL
provisions. Thus, this identification of stress in particular industry segments and categorizing a significantly larger number
of loans as Stage 2 has formed the basis of the provisioning the Company has created – as on March 31, 2020, the company
had total provisions against loan book of Rs 3,469.19 Crores which is 5.6% (Previous Year Rs. 929.92 Crore which is 1.20%)
of the loan book.
Refer to Note 41 for details of loans where the Company has offered moratorium for loans and asset classification benefit
has been applied.
| 219
NOTES
Amount
ECL on assets added/ change in ECL 37.61 18.24 - 55.85
estimates
Assets derecognised or repaid( including (693.18) (106.76) (39.54) (839.48)
Transfers from Stage 1 (5.64) 5.40 0.24 0.00
Transfers from Stage 3 5.72 1.20 (6.93) (0.01)
ECL allowance closing balance 139.13 610.92 179.89 929.94
During the financial year 2018-19 the significant changes in the ECL allowance were on account of assets derecognised
(including from loans sell down), written off/written back amounting to Rs 23,010.49 Crore.
5. Impairment assessment
The Company’s impairment assessment and measurement approach is set out in the notes below. It should be read in
conjunction with the Summary of significant accounting policies.
5. (i) Probability of default
The Company considers a loan as defaulted and classified it as Stage 3 (credit-impaired) for ECL calculations typically
when the borrowers become 90 days past due on contract payments.
Classification of loans into Stage 2 is done on a conservative basis and typically accounts where contractual
repayments are more than 30 days past due are classified in Stage 2. Accounts usually go over 30 days past due
owing to temporary mismatch in timing of borrower’s or his/her business’ underlying cashflows, and are usually
quickly resolved. The Company may also classify a loan in Stage 2 if there is significant deterioration in the loans
collateral, deterioration in the financial condition of the borrower or an assessment that adverse market conditions
may have a disproportionately detrimental effect on the loan repayment. Thus as a part of the qualitative assessment
of whether an instrument is in default, the Company also considers a variety of instances that may indicate delay in
or non-repayment of the loan. When such event occurs, the Company carefully considers whether the event should
result in treating the borrower as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage
2 is appropriate.
It is the company’s policy to consider a financial instrument as ‘cured’ and therefore re-classified out of Stage 3
when none of the default criteria are present. The decision whether to classify an asset as Stage 2 or Stage 1 once
cured depends on the updated credit grade once the account is cured, and whether this indicates there has been a
significant reduction in credit risk.
5. (ii) Internal rating model and PD Estimation process
The company’s internal rating and PD estimation process:
IHFL’s Analytics Department has designed and operates its Internal Rating Model that factors in both quantitative
as well as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive
at factors that are indicative of future credit risk and segments the portfolio on the basis of combinations of these
parameters into smaller homogenous portfolios from the perspective of credit behaviour. The PDs are computed for
these homogenous portfolio segments. The PDs are also used for Ind-AS 109 ECL calculations and the Ind AS 109
Stage classification of the exposure.
The Internal Rating Model is dynamic and is calibrated periodically; the choice of parameters and division into
smaller homogenous portfolios is thus also dynamic.
220 |
NOTES
5. (iii) Exposure at default
The outstanding balance as at the reporting date is considered as EAD by the company. Considering that PD
determined above factors in amount at default, there is no separate requirement to estimate EAD.
5. (iv) Loss given default
The Company uses historical loss data for identified homogenous pools for the purpose of calculating LGD. The
estimated recovery cash flows are discounted such that the LGD calculation factors in the NPV of the recoveries.
5. (v) Significant increase in credit risk
The internal rating model evaluates the loans on an ongoing basis. The rating model also assesses if there has been
a significant increase in credit risk since the previously assigned risk grade One key factor that indicates significant
increase in credit risk is when contractual payments are more than 30 days past due.
5. (vi) Company’s loans measured on a collective basis
For Stage 3 loans ECL is calculated on an individual borrower basis.
For stages 1 and 2 the internal rating model analyzes historical empirical data, determines parameters that are
indicative of future credit risk and segments the portfolio on the basis of a combination of these parameters into
smaller homogeneous portfolios. The loss estimation for these pools is hence done on a collective basis. In addition
to information specific to the borrower and the performance of the loan, the model may also utilise supplemental
external information that could affect the borrower’s behaviour. The model is also calibrated to incorporate external
inputs such as GDP growth rate, unemployment rate and factors specific to the sector/industry of the borrower.
6. Inputs to the ECL model for forward looking economic scenarios
The internal rating model also provides for calibration to reflect changes in macroeconomic parameters and industry
specific factors.
7. Collateral
The company is in the business of extending secured loans mainly backed by mortgage of property (residential or
commercial).
In addition to the above mentioned collateral, the Company holds other types of collateral and credit enhancements, such
as cross-collateralisation on other assets of the borrower, share pledge, guarantees of parent/holding companies, personal
guarantees of promoters/proprietors, hypothecation of receivables via escrow account, hypothecation of receivables in
other bank accounts etc.
In its normal course of business, the Company does not physically repossess properties or other assets, but recovery
efforts are made on delinquent loans through on-rolls collection executives, along with legal means to recover due loan
repayments. Once contractual loan repayments are more than 90 days past due, repossession of property may be initiated
under the provisions of the SARFAESI Act 2002. Re-possessed property is disposed of in the manner prescribed in the
SARFAESI act to recover outstanding debt.
The Company did not hold any financial instrument for which no loss allowance is recognised because of collateral at March
31, 2020. There was no change in the Company’s collateral policy during the year.
8. As at the year end the Company has undrawn loan commitments (after applying credit conversion factor) of Rs. 1,134.72
Crore(Previous Year Rs. 2,011.01 Crore).
| 221
NOTES
(9) Investments

income
Amount
Debt Securities 21.38 - 4,394.15 - 4,415.53
Equity Instruments - 2,904.30 - - 2,904.30
Subsidiaries - - - 3,847.78 3,847.78
Associates - - - - -
Total gross (A) 1,541.15 2,904.30 7,878.58 3,847.78 16,171.81
Investments in India 1,541.15 36.40 7,878.58 3,847.78 13,303.91
Total (B) 1,541.15 2,904.30 7,878.58 3,847.78 16,171.81
Less: Allowance for Impairment loss (C ) - - - 5.05 5.05
Total Net D = (A) -(C) 1,541.15 2,904.30 7,878.58 3,842.73 16,166.76
*At Cost
income
Amount
Debt Securities 839.41 - 9,989.69 - 10,829.10
Equity Instruments - 18.00 - - 18.00
Subsidiaries - - - 3,838.02 3,838.02
Associates - 2,787.78 - - 2,787.78
Total gross (A) 2,361.21 2,805.78 16,925.99 3,838.02 25,931.00
Investments in India 2,361.21 18.00 16,925.99 3,838.02 23,143.22
Total (B) 2,361.21 2,805.78 16,925.99 3,838.02 25,931.00
Less: Allowance for Impairment loss (C ) - - - 5.05 5.05
Total Net D = (A) -(C) 2,361.21 2,805.78 16,925.99 3,832.97 25,925.95
*At Cost
222 |
NOTES
(1) As at March 31, 2020, the Company holds 100% of the Equity Share capital of Indiabulls Insurance Advisors Limited and
Indiabulls Capital Services Limited, these are considered as strategic and long term in nature and are held at a cost of Rs.
0.05 Crore and Rs. 5.00 Crore respectively. Based on the audited financials of these companies, as at March 31, 2020,
there has been an erosion in the value of investment made in these companies as the operations in this company have
not yet commenced / are in the process of being set up. During the financial year 2016-17 provision of Rs. 5.05 Crore for
diminution in the carrying value was made for these companies in the books of accounts.
(2) On December 13, 2010 the Erstwhile Holding Company (IBFSL) had sold 26% shares held by it in Indian Commodity
Exchange Limited (ICEX) to Reliance Exchange Next Limited (R-Next) for a total consideration of Rs. 47.35 Crore against a
proportionate cost of Rs. 26.00 Crore. As a result thereof, the stake of IBFSL in ICEX has been reduced from 40% to 14% and
the same has been reclassified as a long term investment from the earlier classification of being an Associate. MMTC filed
a petition before the National Company Law Tribunal (NCLT) (Earlier known as Company Law Board) against ICEX, R-Next
and IBFSL alleging that the transfer is null and void in terms of the Shareholders Agreement in view of the Forward Markets
Commission (FMC) guidelines. IBFSL contends that such view of MMTC is based on the old FMC guidelines and without
considering the amended FMC Guidelines dated June 17, 2010 wherein the transfer norms were relaxed. IBFSL had filed its
objections on maintainability of the petition which is pending adjudication before the CLB.
(3) During the financial year 2016-17, the Company has invested Rs. 7.00 Crore by subscribing to 7,000,000 Equity Shares of
face value Rs. 5 per share, issued by Indian Commodity Exchange Limited through Rights issue. During the financial year
2018-19 the Company has sold 5,000,000 shares of Indian Commodity exchange for total consideration of Rs.3.00 Crore.
(4) During the financial year 2015-16, the Company has invested Rs. 663.31 Crore in OakNorth Holdings Limited by subscribing
to 818,615 shares of face value of GBP 0.59 per share for 39.76% stake. OakNorth Bank- a licensed UK commercial bank
is a wholly owned subsidiary of OakNorth Holdings Limited. As at March 31, 2017 the Company had a stake of 38.73%.
During the year 2017-18 the Company has sold 277,000 shares from its stake in Acorn OakNorth Holdings Limited for Rs.
767.78 Crore and recorded a gross gain on sale of investment of Rs. 543.33 Crore in other comprehensive income. During
the year ended March 31, 2020, in respect of Oaknorth Holdings Limited , the Company has lost significant influence due
to a reduction of its effective holding in the Investee Company, which is considered a deemed disposal of the Company’s
investment in associate as per Ind AS 28 “Investments in Associates and Joint Ventures” (Ind AS 28).
(5) During the current financial year, the Company has invested Rs. Nil (Previous Year Rs. 2,725.05 Crore) by subscribing to Nil
(Previous Year 164,727,923) Equity Shares of face value Rs. 10 per share, issued by Indiabulls Commercial Credit Limited.
(6) During the financial year 2018-19, the Company converted its Investment in preference shares of Indiabulls Commercial
Credit Limited of Rs. 202.50 Crore in to equity shares of Indiabulls Commercial Credit Limited having face value of Rs. 10 per
share at Rs. 80 per equity share fully paid (including securities premium of Rs. 70 per share). The same has been converted
at cost at which the same was invested.
(10) Other financial assets (at amortised cost)
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Security Deposit 47.26 31.33
Interest receivable on Derivate Assets - -
Interest only Strip receivable 1,064.67 1,267.24
Interest Accrued on Deposit accounts / Margin Money 200.71 125.68
Other Receivable 74.68 36.59
Total 1,387.32 1,460.84
| 223
NOTES
11. Property, plant and equipment and intangible assets
Note 11.1 Property, plant and equipment
Leasehold Computers Furniture Motor Office Land* Building (1) Total

Improvements and and vehicles equipment
printers fixtures
Gross block
At March 31, 2019 50.63 64.66 27.78 88.47 23.81 0.32 14.60 270.27
Additions* 15.91 1.38 3.15 5.74 1.55 - - 27.73
Disposals 3.26 2.88 0.82 1.26 1.21 - - 9.43
At March 31, 2020 63.28 63.16 30.11 92.95 24.15 0.32 14.60 288.57
Depreciation
At March 31, 2019 23.38 42.78 14.34 48.87 15.29 - 0.43 145.09
Disposals 1.37 2.88 0.46 0.97 1.08 - - 6.76
At March 31, 2020 27.75 51.33 16.15 62.25 17.01 - 0.67 175.16
Net Block
At March 31, 2019 27.25 21.88 13.44 39.60 8.52 0.32 14.17 125.18
At March 31, 2020 35.53 11.83 13.96 30.70 7.14 0.32 13.93 113.41
Note 11.2 Other Intangible assets
Software Total
Gross block
At March 31, 2019 40.75 40.75
Purchase 4.67 4.67
Disposals - -
At March 31, 2020 45.42 45.42
Amortization
At March 31, 2019 25.41 25.41
At March 31, 2020 31.19 31.19
Net block
At March 31, 2019 15.34 15.34
At March 31, 2020 14.23 14.23
*Mortgaged as Security against Secured Non Convertible Debentures (Refer Note 14)
(1) Flat costing Rs. 0.31 Crore Mortgaged as Security against Secured Non Convertible Debentures (Refer Note 14)
224 |
NOTES
(12) Other non financial assets
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Capital Advances 26.94 29.78
Others including Prepaid Expenses/Cenvat Credit and Employee advances 537.52 782.11
Total 564.46 811.89
(13) Trade Payables
As at As at
March 31, 2020 March 31, 2019
Amount Amount
(a) Total outstanding dues of micro enterprises and small enterprises*; and - -
(b) Total outstanding dues of creditors other than micro enterprises and small 11.56 27.14
enterprises
11.56 27.14
* Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006:
(a) An amount of Nil and Nil was due and outstanding to suppliers as at the end of the accounting year on account of Principal
and Interest respectively.
(b) No interest was paid during the year in terms of section 16 of the Micro, Small and Medium Enterprises Development Act,
2006 and no amount was paid to the supplier beyond the appointed day.
(c) No amount of interest is due and payable for the period of delay in making payment but without adding the interest
specified under the Micro, Small and Medium Enterprises Development Act, 2006.
(d) No interest was accrued and unpaid at the end of the accounting year.
(e) No further interest remaining due and payable even in the succeeding years for the purpose of disallowance of a deductible
expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have
been identified on the basis of information available with the Company. This has been relied upon by the Auditors.
(14) Debt Securities
As at As at
March 31, 2020 March 31, 2019
Amount Amount
At Amortised Cost
Secured
Debentures*(Refer Note 32(i)) 32,092.12 42,858.39
Unsecured
Commercial Paper - 5,330.00
Total gross (A) 32,092.12 48,188.39
Debt securities in India 29,155.87 46,548.77
Debt securities outside India 2,936.25 1,639.62
*Redeemable Non-Convertible Debentures are secured against Immovable Property / Other financial Assets and pool of Current
and Future Loan Receivables of the Company(Including Investments).
| 225
NOTES
(15) Borrowings other than debt securities*
As at As at
March 31, 2020 March 31, 2019
Amortised Cost
Amount
Secured
Loans from bank and others*#(Refer Note 32(ii)) 26,436.06 35,195.76
From banks- Cash Credit Facility* 978.40 3,807.70
From banks- Working Capital Loan* 5,693.82 3,915.00
Securitisation Liability* 3,242.54 768.35
Unsecured
Lease Liability 259.10 -
Total gross (A) 36,609.92 43,686.81
Borrowings in India* 31,463.73 38,867.94
Borrowings outside India (ECB)* 5,146.19 4,818.87
*Secured by hypothecation of Loan Receivables(Current and Future) / Other financial Assets / Cash and Cash Equivalents of the
Company(including investments).
(16) Subordinated Liabilities
As at As at
March 31, 2020 March 31, 2019
Amortised Cost
Amount
- 10.60% Non convertible Subordinated Perpetual Debentures* 100.00 100.00
- Subordinate Debt(Refer Note 32(iii)) 4,238.60 4,229.38
Total gross (A) 4,338.60 4,329.38
Subordinated Liabilities in India 4,338.60 4,329.38
Subordinated Liabilities outside India - -
*Put Option or Call Option exercisable at the end of 10 years from the date of allotment only with the prior approval of the
concerned regulatory authority
(17) Other financial liabilities (at amortised cost)
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Interest accrued but not due on borrowings 1,449.01 1,868.56
Foreign Currency Forward premium payable 512.70 295.74
Amount payable on Assigned Loans 438.18 935.02
Other liabilities 325.96 162.83
Temporary Overdrawn Balances as per books 759.87 1,712.13
Unclaimed Dividends(Refer Note 38) 4.67 4.65
Servicing liability on assigned loans 148.72 110.65
Total 3,639.11 5,089.58
226 |
NOTES
(18) Provisions
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Provision for employee benefits (Refer Note 29)
Provision for Compensated absences 19.84 19.53
Provision for Gratuity 50.65 44.48
Provision for Superannuation 114.76 101.14
Provisions for Loan Commitments 4.18 0.99
Total 189.43 166.14
(19) Other Non-financial liabilities
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Statutory Dues Payable and other non financial liabilities 593.60 643.46
Total 593.60 643.46
(20) Equity share capital
Details of authorized, issued, subscribed and paid up share capital
As at As at
March 31, 2020 March 31, 2019
Amount Amount
Authorized share Capital
3,000,000,000(Previous Year 3,000,000,000) Equity Shares of face value Rs. 2 each 600.00 600.00
1,000,000,000(Previous Year 1,000,000,000) Preference Shares of face value Rs.10 each 1,000.00 1,000.00
1,600.00 1,600.00
Issued, Subscribed & Paid up capital
Issued and Subscribed Capital
427,574,091 (Previous Year 427,403,339) Equity Shares of Rs. 2/- each 85.51 85.48
Called-Up and Paid Up Capital
Fully Paid-Up
427,574,091 (Previous Year 427,403,339) Equity Shares of Rs. 2/- each
The Company has only one class of Equity Shares of face value Rs. 2 each (Previous Year
Rs. 2 each) fully paid up. Each holder of Equity Shares is entitled to one vote per share.
The final dividend proposed by the Board of Directors, if any, is subject to the approval
of the Shareholders in the ensuing Annual General Meeting, if applicable.
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.
Total 85.51 85.48
(i) As at March 31, 2020 4,004,745 (Previous Year 2,593,852) GDR’s were outstanding and were eligible for conversion
into Equity Shares. The Company does not have information with respect to holders of these GDR’s. Holders of Global
Depository Receipts (GDRs) will be entitled to receive dividends, subject to the terms of the Deposit Agreement, to the
same extent as the holders of Equity Shares, less the fees and expenses payable under such Deposit Agreement and any
Indian tax applicable to such dividends. Holders of GDRs will not have voting rights with respect to the Deposited Shares.
The GDRs may not be transferred to any person located in India including Indian residents or ineligible investors except as
permitted by Indian laws and regulations.
| 227
NOTES
The reconciliation of equity shares outstanding at the beginning and at the end of the reporting period.
Name of the shareholder As at March 31, 2020 As at March 31, 2019

No. of shares Amount No. of shares Amount
Equity Share at the beginning of period 427,403,339 85.48 426,535,786 85.31
Add:
Equity Share Allotted during the period
ESOP exercised during the period(Refer note (v)) 170,752 0.03 867,553 0.17
Equity share at the end of period 427,574,091 85.51 427,403,339 85.48

Promoter
Inuus Infrastructure Private Limited 82,943,325 19.40%
Non - Promoters
Total 128,767,048 30.12%

Promoter
SG Advisory Services Private Limited 27,204,779 6.37%
Non - Promoters
Total 73,032,152 17.09%
As per 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.
(ii) Employees Stock Options Schemes:
Grants During the Year:
There has been no new grants of Esops during the current financial year(Previous year 10,000,000 Esops)
(iii) “Employee Stock Benefit Scheme 2019 (“Scheme”).
The Scheme has been adopted and approved pursuant to: (a) a resolution of the Board of Directors of INDIABULLS
HOUSING FINANCE LIMITED at its meeting held on November 6, 2019; and (b) a special resolution of the shareholders’ of
the Company passed through postal ballot on December 23, 2019, result of which were declared on December 24, 2019.
This Scheme comprises:
a. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Option Plan 2019
(“ESOP Plan 2019”)
b. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Purchase Plan 2019
(“ESP Plan 2019”)
c. INDIABULLS HOUSING FINANCE LIMITED Stock Appreciation Rights Plan 2019
(“SARs Plan 2019”)
228 |
NOTES
In accordance with the ESOP Regulations, the Company had set up Indiabulls Housing Finance Limited Emplyee Welfare
Trust (Trust) for the purpose of implementation of ESOP Scheme. The Scheme is administered through ESOP Trust, whereby
shares held by the ESOP Trust are transferred to the employees, upon exercise of stock options as per the terms of the
Scheme
(iv) Particulars As at As at As at As at As at
March 31, 2020 March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Equity shares allotted as fully paid bonus - - - - -
shares by capitalization of securities
premium
(v) The other disclosures in respect of the ESOS / ESOP Schemes are as under:-

Plan II – 2006 – 2008
Total Options under the Scheme 720,000 7,500,000 39,000,000 39,000,000
Total Options issued under the Scheme 720,000 7,500,000 10,500,000 10,500,000
Vesting Period and Percentage Four Ten years,15% Five years, Five years,
years,25% First year, 20% each 20% each
each year 10% for next year year
eight years
and 5% in last
year
First Vesting Date 1st 8th 12th October, 12th August,
November, December, 2015 2018
2008 2009
Revised Vesting Period & Percentage Nine N.A. N.A. N.A.
years,11%
each year for
8 years and
12% during
the 9th year
Exercise Price (Rs.) 100.00 95.95 394.75 1,156.50
date date date date
Outstanding at the beginning of the year(Nos.) 1,152 70,676 4,025,556 10,336,500
Options vested during the year (Nos.) - - 2,004,000 -
Exercised during the year (Nos.) - 54,812 111,800 -
Lapsed during the year - - 124,000 2,612,500
Re-granted during the year - - - N.A
Outstanding at the end of the year (Nos.) 1,152 15,864 3,789,756 7,724,000
Exercisable at the end of the year (Nos.) 1,152 15,864 3,789,756 1,931,000
Remaining contractual Life (Weighted Months) 19 39 46 67
| 229
NOTES
Particulars IHFL ESOS - IHFL ESOS - IHFL-IBFSL IHFL-IBFSL
2013 2013 Employees Employees
Stock Option Stock
– 2008 Option –
-Regrant 2008-Regrant
Total Options under the Scheme 39,000,000 39,000,000 N.A. N.A.
Total Options issued under the Scheme 100,000 10,000,000 N.A. N.A.
Vesting Period and Percentage Five years, Five years, N.A. N.A.
20% each 20% each
year year
First Vesting Date 25th March, 10th March, 31st 16th July,
2019 2020 December, 2011
2010
Revised Vesting Period & Percentage N.A. N.A. Ten years, Ten years,
10% for every 10% for every
year year
Exercise Price (Rs.) 1,200.40 702.00 125.90 158.50
date date date date
Outstanding at the beginning of the year(Nos.) - 10,000,000 15,030 38,880
Options vested during the year (Nos.) - - 6,390 19,440
Exercised during the year (Nos.) - - 4,140 -
Lapsed during the year - 3,117,600 - -
Re-granted during the year N.A N.A N.A N.A
Outstanding at the end of the year (Nos.) - 6,882,400 10,890 38,880
Exercisable at the end of the year (Nos.) - - 10,890 19,440
Remaining contractual Life (Weighted Months) N.A 89 50 57

Plan – 2006 - – 2008 Plan II – 2006
Total Options under the Scheme N.A. N.A. N.A.
Total Options issued under the Scheme N.A. N.A. N.A.
Vesting Period and Percentage N.A. N.A. N.A.
First Vesting Date 27th August, 11th January, 27th August,
2010 2012 2010
Revised Vesting Period & Percentage Ten years, Ten years, Ten years,
10% for every 10% for every 10% for every
year year year
Exercise Price (Rs.) 95.95 153.65 100.00
Exercisable Period 5 years from 5 years from 5 years from
each vesting each vesting each vesting
date date date
Outstanding at the beginning of the year(Nos.) 39,500 3,000 21,900
230 |
NOTES
Plan – 2006 - – 2008 Plan II – 2006
Options vested during the year (Nos.) 39,500 1,500 21,900
Exercised during the year (Nos.) - - -
Expired during the year (Nos.) - - -
Cancelled during the year - - -
Lapsed during the year - - -
Re-granted during the year N.A N.A N.A
Outstanding at the end of the year (Nos.) 39,500 3,000 21,900
Exercisable at the end of the year (Nos.) 39,500 1,500 21,900
Remaining contractual Life (Weighted Months) 53 63 53
The details of the Fair value of the options as determined by an Independent firm of Chartered Accountants, for the
respective plans using the Black-Scholes Merton Option Pricing Model:-
Particulars IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL IHFL - IBFSL
Employees Employees Employees Employees Employees
Stock Stock Stock Stock Stock
Option Option Option Option Plan Option
– 2008 – 2008 – 2006- II – 2006- – 2008
Regrant Regrant Regrant Regrant Regrant
Exercise price (Rs.) 125.90 158.50 95.95 100.00 153.65
Option Life (Weighted Average) 9.80 Years 9.80 Years 9.80 Years 9.80 Years 9.80 Years
Particulars IHFL - IBFSL IHFL ESOS - IHFL ESOS - IHFL ESOS - IHFL ESOS -
Employees 2013 2013 2013 2013
Stock (Grant 1) (Grant 2) (Grant 3) (Grant 4)
Option –
2008
Exercise price (Rs.) 95.95 394.75 1,156.50 1,200.40 702.00
Option Life (Weighted Average) 11 Years 5 Years 3 Years 3 Years 3 Years
*The expected volatility was determined based on historical volatility data.
(vi) 18,527,342 Equity Shares of Rs. 2 each (Previous Year : 24,552,194) are reserved for issuance towards Employees
Stock options as granted.
(vii) The weighted average share price at the date of exercise of these options was Rs. 682.59 per share(Previous Year Rs.
782.49 per share).
| 231
NOTES
(21) Other equity
March 31, 2020 March 31, 2019
Amount Amount
Capital Reserve(1)
Capital Redemption Reserve (2)

Securities Premium Account(3)
Balance as per last Balance Sheet 7,490.72 7,459.55
Add: Additions during the year on account of Esops 4.96 23.70
Add: Transfer from Stock compensation 1.32 7.47
Debenture Premium Account (4)

Stock Compensation Adjustment (5)

Less: Transferred to Share Premium account 1.32 7.47
Special Reserve u/s 36(1)(viii) of I Tax Act, 1961(6)
General Reserve (7)

Reserve Fund
Reserve (I)(As per Section 29C of the Housing Bank Act, 1987) (8) & (9)
232 |
NOTES
March 31, 2020 March 31, 2019
Amount Amount
Reserve Fund
Reserve (II)(10)
Add: Amount Transferred during the year - -
Reserve Fund
Reserve (III) (8) & (9)
Additional Reserve(8) & (12(b))
(U/s 29C of the National Housing Bank Act, 1987)
Add: Additions during the year - 300.00
Less: Amount utilised during the year 964.71 -
Closing Balance - 964.71
Debenture Redemption Reserve(11)
Other Comprehensive Income(13)
Less: Amount utiilised during the year(12(a)) (1,967.13) (69.85)
Closing Balance 123.43 2,090.56
Retained Earnings(14)
Balance at the beginning of the year 538.36 452.53
Add: Additions during the year (including transfer from OCI to be recognised directily 2,165.16 3,732.27
in retained earnings)
Less: Amount utilised during the year 2,316.40 3,646.44
14,844.09 17,173.44
(1) Capital reserve is created on receipt of non refundable debenture warrants exercise price.
(2) Capital redemption reserve is created on redemption of prefrence shares.
(3) Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
(4) Debenture premium account is used to record the premium on issue of debenture.
(5) Stock Compensation Adjustment is created as required by Ind AS 102 ‘Share Based Payments’ on the Employee Stock Option
Scheme operated by the Company for employees of the Group.
(6) This pertains to reserve created under section 36(1)(viii) of the Income Tax Act, 1961, by the Erstwhile Holding Company
Indiabulls Financial Services Limited, which has been transferred to the Company under the Scheme of Arrangement during
the year ended March 31, 2013.
(7) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
| 233
NOTES
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.
(8) In terms of Section 29C of the National Housing Bank (“NHB”) Act, 1987, the Company is required to transfer at least 20%
of its Profit after tax to a Reserve Fund before any dividend is declared. Transfer to a Reserve Fund in terms of Section 36(1)
(viii) of the Income Tax Act, 1961 is also considered as an eligible transfer as transfer to Special Reserve under Section 29C
of the National Housing Bank (“NHB”) Act, 1987. The Company has transferred an amount of Rs. 220.00 Crore (Previous
Year Rs. 387.00 Crore) to reserve created in terms of Section 36(1)(viii) of the Income Tax Act, 1961 termed as “Reserve
(III)” and also transferred an amount of Rs. 211.98 Crore (Previous Year Rs. 358.85 Crore) to the Reserve in terms of Section
29C of the National Housing Bank (“NHB”) Act, 1987 as at the year end. Further an additional amount of Rs. Nil (Previous
Year Rs. 300.00 Crore) has been set apart by way of transfer to Additional Reserve Fund in excess of the statutory minimum
requirement as specified under Section 29C pursuant to Circular no. NHB(ND)/DRS/Pol-No. 03/2004-05 dated August 26,
2004 issued by the National Housing Bank. The additional amount so transferred may be utilised in the future for any
business purpose.
(9) Disclosure in terms of Circular No. NHB(ND)/ DRS/ Pol.Circular.61/ 2013-14 dated April 7, 2014 and NHB notification No.
NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017:-
March 31, 2020 March 31, 2019
Amount Amount
Balance at the beginning of the year
a) Statutory Reserve U/s 29C of the National Housing Bank Act, 1987 1,568.06 1,209.21
b) Amount of Reserve U/s 36(1)(viii) of Income Tax Act, 1961 taken into 1,958.00 1,571.00
account for the purposes of Statutory Reserve under Section 29C of the
NHB Act, 1987
c) Total 3,526.06 2,780.21
Addition / Appropriation / Withdrawal during the year
Add:
a) Amount transferred U/s 29C of the NHB Act, 1987 211.98 358.85
b) Amount of Reserve U/s 36(1)(viii) of Income Tax Act, 1961 taken into 220.00 387.00
NHB Act, 1987
Less:
a) Amount appropriated from the Statutory Reserve U/s 29C of the NHB Act,
1987
b) Amount withdrawn from the Reserve U/s 36(1)(viii) of Income Tax Act,
1961 which has been taken into account for the purpose of provision U/s
29C of the NHB Act, 1987
Balance at the end of the year
a) Statutory Reserve U/s 29C of the National Housing Bank Act, 1987 1,780.04 1,568.06
b) Amount of Reserve U/s 36(1)(viii) of Income Tax Act, 1961 taken into 2,178.00 1,958.00
NHB Act, 1987
c) Total 3,958.04 3,526.06
(10) This pertains to reserve created under section 45-IC of the Reserve Bank of India Act 1934, by the Erstwhile Holding Company
Indiabulls Financial Services Limited, which has been transferred to the Company under the Scheme of Arrangement during
the year ended March 31, 2013.
(11) The Companies Act 2013 requires companies that issue debentures to create a debenture redemption reserve from annual
profits until such debentures are redeemed. The Company is required to transfer a specified percentage (as provided in the
234 |
NOTES
Companies Act, 2013) of the outstanding redeemable debentures to debenture redemption reserve. The amounts credited
to the debenture redemption reserve may not be utilised except to redeem debentures. On redemption of debentures, the
amount may be transferred from debenture redemption reserve to General Reserve.
(12) The Company’s total amount of impairment of financial instruments reflects among other things, an increased risk of
deterioration in macro-economic factors and the impact on the Company’s borrowers caused by the COVID-19 pandemic.
Accordingly, during the year ended March 31, 2020 the Company has:
(a) Debited an amount of Rs. 1,798 Crores on account of impairment on financial instruments to Other Comprehensive
Income to harmonize the accounting with the gains recorded on deemed disposal of OakNorth Holdings Limited.
In the past, the Company had recorded fair value gains and realised gains on its investment in OakNorth Holdings
limited in Other Comprehensive Income. The amount of impairment of financial instruments includes the amount of
fair value change in Yes Bank Bond as mentioned in point C below.
(b) Debited additional special reserve created under u/s 29 (c) as per the NHB circular no. NHB (ND)/DRS/Pol-
No.03/2004-05 dated August 26, 2004 for an amount of Rs. 964.71 crores in respect of impairment of financial
instruments.
(c) Besides the total provisions of Rs. 3,473 Crores, the Company has also recorded fair value impairment of Rs.636
crores on AT-1 bonds of Yes Bank Limited to record the effect of the scheme of reconstruction announced by RBI on
March 5, 2020.
(d) Due to these departures there is no adverse impact on the total equity, assets, and liabilities or the functioning of the
Company.
(13) Other comprehensive income includes fair value gain/(loss) on equity instruments and effective portion of cash flow hedge.
(14) Retained earnings represents the surplus in Profit and Loss Account and appropriations.
(22) Interest Income

value through cost
profit and loss
Amount
Total 300.59 9,580.92 9,881.51

value through cost
profit and loss
Amount
Total 167.47 13,370.63 13,538.10
| 235
NOTES
(23) Dividend Income

March 31, 2020 March 31, 2019
Amount Amount
Dividend Income on Mutual Funds/Shares/ etc. 816.82 371.58
Dividend Income From Subsidiary - 13.54
816.82 385.12
(24) Fee and Commission Income

March 31, 2020 March 31, 2019
Amount Amount
Commission on Insurance 0.92 32.64
Other Operating Income 158.79 162.94
Income from Advisory Services 53.29 27.76
Income from Service Fee 43.15 34.88
256.15 258.22
(25) Net gain/ (loss) on fair value changes

March 31, 2020 March 31, 2019
Amount Amount
Net gain/ (loss) on financial instruments at fair value through profit or loss
(i) On trading portfolio
- Investments (169.47) 617.89
- Derivatives - (1.11)
Total Net gain/(loss) on fair value changes (A) (169.47) 616.78
Fair Value changes:
Net gain/ (loss) on fair value changes
- Realised (293.52) 589.76
- Unrealised 124.05 27.02
Total Net gain/(loss) on fair value changes (B) (169.47) 616.78
(26) Other Income

March 31, 2020 March 31, 2019
Amount Amount
Miscellaneous Income 15.81 31.51
Sundry Credit balances written back/ Bad debt recovered 0.26 0.26
16.07 31.77
236 |
NOTES
(27) Finance Costs

March 31, 2020 March 31, 2019
On financial On financial
liabilities liabilities
measured at measured at
Amortised cost Amortised cost
Amount
Debt Securities 3,496.54 5,036.11
Borrowings (Other than Debt Securities)(1) 3,414.86 3,319.79
Subordinated Liabilities 416.26 395.69
Processing and other Fee 107.21 90.35
Bank Charges 1.54 2.35
FCNR Hedge Premium 157.74 151.54
Other Interest Expenses 115.45 61.28
Total 7,709.60 9,057.11
1) Includes premium on principal only swaps on foreign currency loans amounting to Rs. 133.91 Crore (Previous Year
Rs.120.89 Crore).
(2) Disclosure of Foreign Currency Exposures:-

Rate in Foreign
Currency
I. Assets
II. Liabilities
| 237
NOTES

Rate in Foreign
Currency
I. Assets
II. Liabilities
(3) Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017
Clause 3.4 for Derivatives are as follows(Refer Note 48):-
3.4.1. Forward Rate Agreement (FRA) / Interest Rate Swap (IRS):-

March 31, 2020 March 31, 2019
Amount Amount
(i) The notional principal of swap agreements 3,221.76 21,212.62
(ii) Losses which would be incurred if counterparties failed to fulfill their 6.45 12.25
obligations under the agreements
(iii) Collateral required by the FC upon entering into swaps Nil Nil
(iv) Concentration of credit risk arising from the swaps Counterparty for all Swaps entered
into by the company are Scheduled
Commercial Banks
(v) The fair value of the swap book Receivable/(Payable) (181.37) (58.97)
238 |
NOTES
3.4.2 Exchange Traded Interest Rate (IR) Derivative:-
Currency Interest Rate

Derivatives Derivatives
(i) Notional principal amount of exchange traded IR derivatives undertaken N.A. N.A.
during the year
(ii) Notional principal amount of exchange traded IR derivatives outstanding N.A. N.A.
as on 31st March 2020
(iii) Notional principal amount of exchange traded IR derivatives outstanding N.A. N.A.
and not "highly effective"
(iv) Mark-to-market value of exchange traded IR derivatives outstanding and N.A. N.A.
not "highly effective"
3.4.3. (A) Qualitative Disclosure:-
The Company’s activities expose it to the financial risks of changes in foreign exchange rates and interest rates. The
Company uses derivative contracts such as foreign exchange forward, cross currency contracts, interest rate swaps, foreign
currency futures, options and swaps to hedge its exposure to movements in foreign exchange and interest rates. The use
of these derivative contracts reduce the risk or cost to the Company and the Company does not use those for trading or
speculation purposes.
The Company uses hedging instruments that are governed by the policies of the Company which are approved by the Board
of Directors, which provide written principles on the use of such financial derivatives consistent with the risk management
strategy of the Company. The Board constituted Risk Management Committee (RMC) of the company manages risk on the
company’s derivative portfolio. The officials authorized by the board to enter into derivative transactions for the company
are kept separate from the authorized signatories to confirm the derivative transactions. All derivative transactions that are
entered into by the company are reported to the board, and the mark-to-market on its portfolio is monitored regularly by
the senior management. The company uses Bloomberg to monitor and value its derivative portfolio to ascertain its hedge
effectiveness vis-à-vis the underlying.
To hedge its risks on the principal and/ or interest amount for foreign currency borrowings on its balance sheet, the
company has currently used cross currency derivatives, forwards and principal only swaps. Additionally, the company has
entered into Interest Rate Swaps (IRS) to hedge its basis risk on fixed rate borrowings and LIBOR risk on its foreign currency
borrowings.
Derivative financial instruments are initially measured at fair value on the contract date and are subsequently re-measured
to fair value at each reporting date. Derivatives are classified as assets when the fair value is positive (positive marked
to market value) or as liabilities when the fair value is negative (negative marked to market value). Derivative assets and
liabilities are recognized on the balance sheet at fair value. Fair value of derivatives is ascertained from the mark to market
and accrual values received from the counterparty banks. These values are cross checked against the valuations done
internally on Bloomberg. Changes in the fair value of derivatives other than those designated as hedges are recognized in
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, no longer
qualifies for hedge accounting or the Company chooses to end the hedging relationship.
3.4.3. (B)
Particulars Currency Interest Rate

Derivatives Derivatives
Amount Amount
(i) Derivatives (Notional Principal Amount) 7,736.70 3,221.76
(ii) Marked to Market Positions 732.73 (181.37)
(a) Assets (+) 732.73 6.45
(b) Liabilities (-) (0.00) (187.82)
(iii) Credit Exposure Nil Nil
(iv) Unhedged Exposures Nil Nil
| 239
NOTES
(28) Impairment on financial instruments

March 31, 2020 March 31, 2019
Amount Amount
On financial assets measured at
Amortised cost
ECL on Loans / Bad Debts Written Off(Net of Recoveries) (1) 109.26 213.12
Total 109.26 213.12
(1) ECL on loans / Bad Debts Written Off(Net of Recoveries) includes;

March 31, 2020 March 31, 2019
Amount Amount
ECL on Loan Assets 718.87 348.64
Bad Debt Recovery* (609.61) (135.52)
109.26 213.12
*Net of Bad Debt /advances written off of Rs. 97.38 Crore (Previous Year Net of Bad Debt /advances written off of Rs. 89.50 Crore).
(29) Employee Benefits Expenses

March 31, 2020 March 31, 2019
Amount Amount
Salaries and wages 476.51 597.15
Contribution to provident and other funds 10.64 10.88
Share Based Payments to employees 27.32 75.85
Staff welfare expenses 9.71 10.87
Provision for Gratuity, Compensated Absences and Superannuation Expense(1) 32.79 28.33
Total 556.97 723.08
(1) Employee Benefits – Provident Fund, ESIC, Gratuity and Compensated Absences disclosures as per Indian Accounting
Standard (IndAS) 19 – Employee Benefits:
Contributions are made to Government Provident Fund and Family Pension Fund, ESIC and other statutory funds which cover
all eligible employees under applicable Acts. Both the employees and the Company make predetermined contributions to
the Provident Fund and ESIC. The contributions are normally based on a certain proportion of the employee’s salary. The
Company has recognised an amount of Rs. 10.64 Crore (Previous year Rs. 10.88 Crore) in the Statement of Profit and Loss
towards Employers contribution for the above mentioned funds.
Provision for unfunded Gratuity and Compensated Absences for all employees is based upon actuarial valuations carried
out at the end of every financial year. Major drivers in actuarial assumptions, typically, are years of service and employee
compensation. Pursuant to the issuance of the Indian Accounting Standard (IndAS) 19 on ‘Employee Benefits’, commitments
are actuarially determined using the ‘Projected Unit Credit’ Method. Gains and losses on changes in actuarial assumptions
are accounted for in the Statement of Profit and Loss.
240 |
NOTES
Disclosure in respect of Gratuity, Compensated Absences and Superannuation:
Particulars Gratuity Compensated Absences

(Unfunded) (Unfunded)
2019-2020 2018-2019 2019-2020 2018-2019
Amount Amount
Reconciliation of liability recognised in the Balance Sheet:
Present Value of commitments (as per Actuarial valuation) 50.65 44.48 19.84 19.54
Fair value of plan assets - - - -
Net liability in the Balance sheet (as per Actuarial valuation) 50.65 44.48 19.84 19.54
Movement in net liability recognised in the Balance Sheet:
Net liability as at the beginning of the year 44.48 34.76 19.53 15.54
Amount (paid) during the year/Transfer adjustment (3.12) (1.00) - -
Net expenses recognised / (reversed) in the Statement of 12.28 11.30 0.31 4.00
Profit and Loss
Actuarial changes arising from changes in Demographic 0.01 1.14 - -
assumptions
Actuarial changes arising from changes in financial 6.04 -
assumptions
Experience adjustments (9.04) (1.72) - -
Net liability as at the end of the year 50.65 44.48 19.84 19.54
Expenses recognised in the Statement of Profit and Loss:
Current service cost 8.79 8.37 4.77 5.34
Past service cost - - - -
Interest Cost 3.49 2.93 1.54 1.33
Actuarial (gains) / losses - - (6.00) (2.67)
Expenses charged / (reversal) to the Statement of Profit 12.28 11.30 0.31 4.00
and Loss
Actuarial (gains) / losses N.A. N.A. N.A. N.A.
Actual return on plan assets N.A. N.A. N.A. N.A.
Commitments as at the beginning of the year 44.48 34.76 19.53 15.54
Current service cost 8.79 8.37 4.77 5.34
Past service cost - - - -
Interest cost 3.49 2.93 1.54 1.33
(Paid benefits) (3.12) (1.00) - -
Actuarial (gains) / losses - - (6.00) (2.67)
Actuarial changes arising from changes in Demographic 0.01 -
assumptions
Actuarial changes arising from changes in financial 6.04 1.14 - -
assumptions
Experience adjustments (9.04) (1.72) - -
Commitments as at the end of the year 50.65 44.48 19.84 19.54
Plan assets as at the beginning of the year N.A. N.A. N.A. N.A.
Expected return on plan assets N.A. N.A. N.A. N.A.
Contributions during the year N.A. N.A. N.A. N.A.
Paid benefits N.A. N.A. N.A. N.A.
Actuarial (gains) / losses N.A. N.A. N.A. N.A.
Plan assets as at the end of the year N.A. N.A. N.A. N.A.
| 241
NOTES
Particulars Superannuation
(Unfunded)
2019-2020 2018-2019
Amount
Reconciliation of liability recognised in the Balance Sheet:
Present Value of commitments (as per Actuarial valuation) 114.76 101.13
Fair value of plan assets - -
Net liability in the Balance sheet (as per Actuarial valuation) 114.76 101.13
Movement in net liability recognised in the Balance Sheet:
Net liability as at the beginning of the year 101.13 92.16
Amount (paid) during the year/Transfer adjustment - -
Net expenses recognised / (reversed) in the Statement of Profit and Loss 14.19 13.03
Actuarial changes arising from changes in financial assumptions 6.34 1.86
Experience adjustments (6.90) (5.91)
Net liability as at the end of the year 114.76 101.14
Expenses recognised in the Statement of Profit and Loss:
Current service cost 6.34 5.71
Past service cost - -
Interest Cost 7.85 7.32
Actuarial (gains) / losses - -
Expenses charged / (reversal) to the Statement of Profit and Loss 14.19 13.03
Actuarial (gains) / losses N.A. N.A.
Actual return on plan assets N.A. N.A.
Commitments as at the beginning of the year 101.13 92.15
Current service cost 6.34 5.71
Past service cost - -
Interest cost 7.85 7.32
Paid benefits - -
Actuarial (gains) / losses - -
Actuarial changes arising from changes in financial assumptions 6.34 1.86
Experience adjustments (6.90) (5.91)
Commitments as at the end of the year 114.76 101.13
Plan assets as at the beginning of the year N.A. N.A.
Expected return on plan assets N.A. N.A.
Contributions during the year N.A. N.A.
Paid benefits N.A. N.A.
Actuarial (gains) / losses N.A. N.A.
Plan assets as at the end of the year N.A. N.A.
242 |
NOTES
The actuarial calculations used to estimate commitments and expenses in respect of unfunded Gratuity, Compensated absences
and Superannuation (Pension & Medical coverage) are based on the following assumptions which if changed, would affect the
commitment’s size, funding requirements and expenses:
Particulars Gratuity (Unfunded) Compensated Absences (Unfunded)

2019-2020 2018-2019 2019-2020 2018-2019
Discount Rate 6.80% 7.65% 6.80% 7.65%
Expected Return on plan assets N.A. N.A. N.A. N.A.
Expected rate of salary increase 6.00% 6.00% 6.00% 6.00%
Mortality IALM (2012-14) IALM (2006-08) IALM (2012-14) IALM (2006-08)
Retirement Age (Years) 60 60 60 60
Particulars Superannuation (Unfunded)

2019-2020 2018-2019
Discount Rate 6.80% 7.65%
Expected Return on plan assets N.A. N.A.
Expected rate of salary increase For 20-21 0% 6.00%
thereafter 6%
Mortality IALM (2012-14) IALM (2006-08)
Retirement Age (Years) 60 60
The employer’s best estimate of contributions expected to be paid during the annual period beginning after the Balance Sheet
date, towards Gratuity, Compensated Absences and Superannuation is Rs. 12.63 Crore (Previous Year Rs. 12.67 Crore), Rs. 5.62
Crore (Previous Year Rs. 6.04 Crore) and Rs. 14.87 Crore (Previous Year Rs.19.16 Crore) respectively.
A quantitative sensitivity analysis for significant assumption is as shown below:
Gratuity
March 31, 2020 March 31, 2019

Gratuity
March 31, 2020 March 31, 2019

Leave Encashment
March 31, 2020 March 31, 2019

| 243
NOTES
Leave Encashment
March 31, 2020 March 31, 2019

Superannuation
March 31, 2020 March 31, 2019

Superannuation
March 31, 2020 March 31, 2019

Impact on defined benefit obligation - - - -
The following payments are expected contributions to the defined benefit plan in future years:
Expected payment for future years Gratuity Leave Encashment

March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Amount Amount
Within the next 12 months (next annual 2.21 2.09 1.02 1.02
reporting period)
Between 1 and 2 years 0.91 0.64 0.40 0.55
Beyond 6 years 43.52 38.95 16.70 16.48
Total expected payments 50.65 44.48 19.84 19.52
Expected payment for future years Superannuation

March 31, 2020 March 31, 2019
Amount
Within the next 12 months (next annual reporting period) 1.79 1.70
Between 1 and 2 years 1.53 1.35
Beyond 6 years 105.02 92.44
Total expected payments 114.76 101.13
244 |
NOTES
(30) Other expenses

March 31, 2020 March 31, 2019
Amount Amount
Rent 7.62 70.72
Rates & Taxes Expenses 1.31 1.76
Repairs and maintenance 30.24 28.27
Communication Costs 11.25 10.59
Printing and stationery 2.46 4.79
Advertisement and publicity 31.05 17.16
Auditor's remuneration
Audit Fee(1) 2.89 2.73
Legal and Professional charges(1) 23.02 12.24
CSR expenses(2) 80.23 65.49
Travelling and Conveyance 10.02 11.82
Stamp Duty 8.59 12.79
Recruitment Expenses 0.52 1.53
Business Promotion 2.90 7.68
Loss on sale of Fixed Assets 2.00 1.15
Electricity and water 8.01 9.30
Miscellaneous Expenses 3.37 3.20
Total 225.48 261.22
(1) Fees paid to the auditors include:

March 31, 2020 March 31, 2019
Amount Amount
As auditor
Audit Fee 2.89 2.73
Certification fee* 1.49 0.10
Others - -
4.38 2.83
*Included in Legal and Professional Charges
(2) In respect of Corporate Social Responsibility activities, gross amount required to be spent by the Company during the year
was Rs. 80.23 Crore (Previous Year Rs. 65.49 Crore) and Company has spent Rs. 80.23 Crore (Previous Year Rs. 65.49 Crore).
| 245
NOTES
(31) Tax Expenses
The Company has elected to exercise the option permitted under 115BAA of the Income Tax Act, 1961, as introduced by the
Taxation Laws (Amendment) Ordinance, 2019. The effective applicable corporate tax rate for the company is now 25.17%.
Accordingly, the Company has recognized provision for Income Tax for year ended March 31, 2020 and re-measured its Deferred
Tax asset/liability basis the rate prescribed in the aforesaid section. The major components of income tax expense for the year
ended March 31, 2020 and March 31, 2019 are:
Profit or loss section Year ended Year ended

March 31, 2020 March 31, 2019
Amount Amount
Current income tax:
Current income tax charge 319.20 1,079.20
Adjustments in respect of current income tax of previous year - -
Deferred tax:
Relating to origination and reversal of temporary differences 67.61 339.16
Income tax expense reported in the statement of profit or loss 386.81 1,418.36
Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2020:

March 31, 2020 March 31, 2019
Amount Amount
Accounting profit before tax from continuing operations 2,546.72 5,147.62
Profit/(loss) before tax from a discontinued operation - -
Accounting profit before income tax 2,546.72 5,147.62
Tax at statutory Income Tax rate of 25.17%(Previous Year 34.94%) 640.96 1,798.78
Tax on Expenses / deductions Allowed/Disallowed in Income tax Act (254.15) (380.42)
Tax on Expenses allowed/disallowed in income Tax Act (10.16) 22.86
Deduction u/s 36(i)(viii) (53.41) (135.23)
Net Addition/deduction u/s 36(i)(viia) 13.09 1.85
Income Exempt for Tax Purpose (216.25) (154.97)
Long Term Capital Gain on Sale of Investments 2.51 (114.66)
Others 10.07 (0.27)
Tax expenses related to the profit for the year (a) 386.81 1,418.36
Tax on Other comprehensive income (b) (647.02) (27.80)
Total tax expenses for the comprehensive income (a+b) (260.21) 1,390.56
246 |
NOTES
Deferred Tax
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:

March 31, 2020 March 31, 2020
Amount Amount
Depreciation 24.71 - 14.09 -
Impairment allowance for financial assets 1,020.59 - (194.58) 604.72
Fair value of financial instruments held for - 46.25 (3.33) -
trading
Remeasurement gain / (loss) on defined benefit 46.62 - (10.59) (0.50)
plan
Interest
Gain / loss on equity instrument designated at - 516.92 - 30.28
FVOCI
relationship
Share based Payments 28.02 - (10.89) -
Impact on Loans using effective rate of Interest 9.11 - (55.80) -
Impact on account of EIS and Servicing assets/ - 230.53 173.63 -
liability
Total 1,210.27 860.32 (67.61) 647.02

March 31, 2019 March 31, 2019
Amount Amount
Depreciation 10.62 - 1.80 -
Impairment allowance for financial assets 286.00 - (276.78) -
Fair value of financial instruments held for - 42.93 175.19 -
trading
Remeasurement gain / (loss) on defined benefit 57.71 - 9.55 (1.62)
plan
Interest
Gain / loss on equity instrument designated at - 547.20 - 10.54
FVOCI
relationship
Share based Payments 38.91 - - -
Impact on Loans using effective rate of Interest 64.91 - (61.36) -
Impact on account of EIS and Servicing assets/ - 404.16 (212.86) -
liability
Total 526.86 1,080.77 (339.16) 27.80
| 247
NOTES
(32) Explanatory Notes
(i) Redeemable Non Convertible Debentures (payable at par unless otherwise stated) (Secured unless otherwise stated)
includes:*
As at
March 31, 2020
Amount
9.10 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on January 15, 699.55
2029
9.30 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on November 999.06
22, 2028
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on August 4, 2028 1,023.99
8.43 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on February 23, 24.97
2028
8.43 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on February 22, 3,059.01
2028
8.03 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on September 1,448.89
8, 2027
8.65 % Redeemable Non convertible Debentures of Face value Rs. 1,000 each Redeemable on September 26, 13.48
2026
2026
2026
2026(1)
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on July 22, 2026 24.69
9.30 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on June 30, 2026 196.15
9.30 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on May 29, 2026 24.60
9.30 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on April 29, 2026 204.24
9.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on March 13, 24.73
2026
2026
9.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on December 9.91
31, 2025
30, 2025
20, 2025
2025
31, 2024
16, 2024
248 |
NOTES
As at
March 31, 2020
Amount
24, 2023
21, 2023
10.25 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on October 8, 24.61
2023
11.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on August 29, 998.61
2023
2023
2023
2023
2023
31, 2022
29, 2022
18, 2022
20, 2022
19, 2022
7.77 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on November 7, 287.66
2022
6, 2022
6.38 % Redeemable Non convertible Debentures of Face value $. 1,000 each Redeemable on May 28, 2022 2,622.78
2022
2022
2022
| 249
NOTES
As at
March 31, 2020
Amount
2022
31, 2021
22, 2021
2021
8.75 % Redeemable Non convertible Debentures of Face value Rs. 1,000 each Redeemable on September 26, 3,374.12
2021
2021
2021(1)
10.65 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on September 499.34
7, 2021
2021
0.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on April 8, 2021(1) 168.80
2021
2021
2021
2021(1)
2021
2021
2021
30, 2020
20, 2020
250 |
NOTES
As at
March 31, 2020
Amount
22, 2020
18, 2020
4, 2020
2020
9.15 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on August 7, 2020 14.98
0.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on June 29, 2020(1) 54.78
0.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on May 12, 2020(1) 38.91
0.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on May 4, 2020 (1)
6.41
32,092.12

*Redeemable Non-Convertible Debentures are secured against Immovable Property / Other financial Assets and pool of
Current and Future Loan Receivables of the Company (Including Investments).
As at
March 31, 2019
Amount
2029
22, 2028
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on August 4, 2028 1,023.96
2028
8.43 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on February 22, 3,059.02
2028
2028
8, 2027
2026
2026
| 251
NOTES
As at
March 31, 2019
Amount
2026
2026
2026
2026
31, 2025
30, 2025
20, 2025
2025
31, 2024
16, 2024
2024
24, 2023
21, 2023
2023
2023
2023
252 |
NOTES
As at
March 31, 2019
Amount
2023
2023
2023
2023
31, 2022
29, 2022
18, 2022
20, 2022
19, 2022
2022
6, 2022
2022
2022
2022
2022
2022
31, 2021
0.00 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on December 29, 206.05
2021(1)
22, 2021
2021
2021
| 253
NOTES
As at
March 31, 2019
Amount
2021
2021
7, 2021
2021
2021
2021
2021
2021(1)
2021
2021
2021
30, 2020
20, 2020
22, 2020
18, 2020
4, 2020
2020
254 |
NOTES
As at
March 31, 2019
Amount
2020
2020
2020
2020(1)
2020(1)
2020
8.55 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on March 2, 2020 59.90
2020
2020
2020(1)
31, 2019
2019
2019(1)
27, 2019(1)
14, 2019
2019
2019
8.57 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on October 15, 1,327.60
2019
2019
| 255
NOTES
As at
March 31, 2019
Amount
29, 2019
26, 2019
26, 2019
26, 2019
26, 2019
20, 2019
19, 2019
12, 2019
3, 2019(1)
2019
8.65 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on August 22, 2,182.22
2019
8.90 % Redeemable Non convertible Debentures of Face value Rs. 1,000,000 each Redeemable on June 17, 2019 1,797.41
42,858.39

*Redeemable Non-Convertible Debentures are secured against Immovable Property / Other financial Assets and pool of
Current and Future Loan Receivables of the Company (Including Investments).
256 |
NOTES
As at
March 31, 2020
Amount
Term Loan taken from Bank. This loans is repayable in quarterly installment with moratorium period of 9 month 62.48
from the date of disbursement. The balance tenure for this loan is 6 months from the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable in half yearly installment after the moratorium of 3 years from 999.90
Term Loan taken from Bank. This loan is Repayable in equal installments at the 49th , 61th and 72th month from 128.08
the date of the first drawdown The balance tenure for this loan is 7 months from the Balance Sheet.(2) & (3)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium period of 1 1,421.78
years from the date of disbursement. These loan are secured by hypotication of loan receivables of the company.
The balance tenure for these loans are 17 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium period of 1,248.37
6 month from the date of disbursement. The balance tenure for these loans are 54 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in yearly installment with the moratorium period of 3,897.54
2 years from the date of disbursement. The balance tenure for these loans are 21 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in bullet at the end of the tenure from the date of 5,336.26
disbursement. The balance tenure for these loans are 19 months (average) from the Balance Sheet.(2) & (3)
Term Loan taken from Bank(s).These loans are repayable in yearly installment after the moratorium period of 1,049.97
Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable in monthly installment from the date of disbursement. The 16.67
balance tenure for this loan is 24 months from the Balance Sheet.(1)
Term Loan taken from Bank. This loans is repayable in quarterly installment from the date of disbursement. The 19.78
Term Loan taken from Bank(s). These loans are repayable in half yearly installment from the date of disbursement. 740.12
Term Loan taken from Bank. This loan is repayable in yearly installment with the moratorium period of 4 years 399.96
Balance Sheet.(1)
Term Loan taken from Bank(s).These loans are repayable in half yearly installment with the moratorium period 3,273.71
of 1 years from the date of disbursement. The balance tenure for these loans are 27 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank. This loans is repayable in half yearly installment with the moratorium period of 1.5 1,049.00
years from the date of disbursement. The balance tenure for this loan is 15 months from the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable at the end of 24 months,30th Months and 35th month from 50.00
Term Loan taken from Bank(s). These loan are repayable in bullet at the end of the tenure. The balance tenure 1,468.96
for these loans are 3 days from the Balance Sheet.(1)
26,436.06
(1)
(2) Linked to Libor

*Secured by hypothecation of Loan Receivables(Current and Future) / Other financial Assets / Cash and Cash Equivalents of the
Company (including investments).
| 257
NOTES
As at
March 31, 2019
Amount
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium period of 187.45
9 months from the date of disbursement. The balance tenure for these loans is 18 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank. This loan is Repayable in equal installments at the 49th , 61st and 72nd month from 228.34
the date of the first drawdown. The balance tenure for this loan is 19 months from the Balance Sheet.(2) & (3)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium period of 2,068.49
1 year from the date of disbursement. These loans are secured by hypothecation of loan receivables of the
company. The balance tenure for these loans are 29 months (average) from the Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in quarterly installment with moratorium period of 6 748.80
month from the date of disbursement. The balance tenure for these loan is 47 months (average) from the Balance
Sheet.(1)
Balance Sheet.(1)
Term Loan of taken from Bank(s). These loans are repayable in bullet at the end of the tenure from the date of 1,907.25
Term Loan of taken from Bank(s). These loans are repayable in bullet at the end of the tenure from the date of 4,987.63
disbursement. The balance tenure for these loans are 28 months (average) from the Balance Sheet.(2) & (3)
Term Loan taken from Bank(s). These loans are repayable in yearly installment after the moratorium period of 1,349.91
1 year from the date of disbursement. The balance tenure for these loans are 23 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable in monthly installment from the date of disbursement. The 25.00
Term Loan taken from Bank(s). These loans are repayable in quarterly installment from the date of disbursement. 350.94
Term Loan taken from Bank(s). These loans are repayable in half yearly installment from the date of disbursement. 1,573.37
Term Loan taken from Bank. This loan is repayable in yearly installment with the moratorium period of 4 years 399.95
Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in half yearly installment with the moratorium period 4,040.93
of 1 year from the date of disbursement. The balance tenure for these loans are 38 months (average) from the
Balance Sheet.(1)
Term Loan taken from Bank(s). These loans are repayable in half yearly installment with the moratorium period 1,648.19
of 1.5 years from the date of disbursement. The balance tenure for these loans are 15 months (average) from
the Balance Sheet.(1)
Term Loan taken from Bank. This loan is repayable at the end of 24 months,30th Months and 35th month from 149.99
Term Loan taken from Bank. This loans is repayable at the end of 24 months and 35th month from the date of 499.99
Term Loan taken from Bank(s). These loan are repayable in bullet at the end of the tenure. The balance tenure 1,462.92
for these loans is 7 days (average) from the Balance Sheet.
35,195.75
(1) Linked to base rate / MCLR of respective lenders

(2) Linked to Libor
*Secured by hypothecation of Loan Receivables(Current and Future) / Other financial Assets / Cash and Cash Equivalents
of the Company (including investments).
258 |
NOTES
As at
March 31, 2020
Amount
4,238.60
(1)
| 259
NOTES
As at
March 31, 2019
Amount
4,229.38
(1)
260 |
NOTES
(iv) Disclosure of investing and financing activity that do not require cash and cash equivalent*:

March 31, 2020 March 31, 2019
Property, plant and equipment and intangible assets (44.61) (38.12)
Investments in subsidiaries and other long-term Investments (598.75) (18.22)
Right-of-use assets 247.93 -
Equity share capital including securities premium 1.32 7.47
Borrowings** 507.65 293.22
* Includes non cash movements such as effective interest rate on borrowings and investment, fair value adjustment on
investment etc.
** Represents debt securities, borrowings (other than debt securities) and subordinated liabilities.
(v) Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017
for Investment are as follows(Refer Note 48):-
Clause 3.3

March 31, 2020 March 31, 2019
Amount Amount
Value of Investments
(i) Gross value of Investments
(a) In India 13,959.40 23,110.89
(b) Outside India 438.86 438.86
(ii) Provisions for Depreciation
(a) In India 667.54 30.58
(b) Outside India - -
(iii) Net value of Investments
(a) In India 13,291.86 23,080.31
(b) Outside India 438.86 438.86
Movement of provisions held towards depreciation on investments
(i) Opening balance 30.58 30.58
(ii) Add: Provisions made during the year 658.69 -
(iii) Less: Write-off / Written-back of excess provisions during the year 21.73 -
(iv) Closing balance 667.54 30.58
(g) Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017
are as follows(Refer Note 48):-
Clause 5.5 Overseas Assets

March 31, 2020 March 31, 2019
Amount Amount
Investment in shares of OakNorth Holdings Limited 438.86 438.86
Bank Balances 0.08 0.17
| 261
NOTES
(h) Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017
are as follows(Refer Note 48):-
Clause 5.6 Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting Norms)
Name of the SPV sponsored
Domestic Overseas
None None
(vi) During the year, the Company has bought back non-convertible debenture having face value of Rs.8,281.73 crores, thereby
earning a profit of Rs.320.83 crores which is clubbed under net gain on derecognition of financial instruments under
amortized cost category.
(vii) The Citizens Whistle Blower Forum has filed a Public Interest Litigation (“PIL”) before the Delhi High Court wherein certain
allegations have been made against the Indiabulls group. The Company has vehemently denied the frivolous allegations
that have been made without basic research or inquiry. The company has also filed a perjury application wherein notice has
been issued. The Management has concluded that the allegations made in the Writ Petition has no merit and no impact on
the financial statements. The matter is sub judice and pending with the Delhi High Court.
(33) Contingent Liability and Commitments:
(a) Demand pending u/s 143(3) of the Income Tax Act,1961
(i) For Rs. 1.23 Crore with respect to FY 2008-09 (Previous Year Rs. 1.23 Crore) against disallowances under Income Tax
Act,1961,against which appeal is pending before Supreme Court.
(ii) For Rs.1.27 Crore with respect to FY 2010-11 (Previous Year Rs.1.27 Crore) against disallowances under Income Tax
Act,1961, against which the department has filed appeal before High Court.
(iii) For Rs. 0.05 Crore with respect to FY 2010-11 (Previous Year Rs. 0.05 Crore) against disallowances under Income Tax
Act,1961 against which appeal is pending before CIT ( Appeal ).
(iv) For Rs. 0.00 Crore with respect to FY 2011-12 (Previous Year Rs. 0.00 Crore) against disallowances under Income Tax
(v) For Rs. 0.11 Crore with respect to FY 2012-13 (Previous Year Rs. 0.19 Crore) against disallowances under Income Tax
(vi) For Rs. 14.16 Crore with respect to FY 2013-14 (Previous Year Rs. 14.16 Crore) against disallowances under Income
(vii) For Rs. 13.81 Crore with respect to FY 2014-15 (Previous Year Rs. 13.81 Crore) against disallowances under Income
(viii) For Rs 20.54 Crore with respect to FY 2015-16 (Previous Year Rs. 20.54 Crore) against disallowances under Income
(ix) For Rs. 48.66 Crore with respect to FY 2016-17 (Previous Year Rs. 48.66 Crore) against disallowances under Income
(x) For Rs. 0.05 Crore with respect to FY 2010-11 (Previous Year Rs. 0.05 Crore) against disallowances under Income Tax
(xi) For Rs. 12.03 Crore with respect to FY 2011-12 (Previous Year Rs. 12.03 Crore) against disallowances under Income
(b) (i) Demand pending u/s of 25, 55 , 56 & 61 of The Rajasthan Value Added Tax Act, 2003 for Rs. 1.45 Crore (Including
interest & Penalty) with respect to FY 2007-08 to FY 2012-13 (Previous Year Rs. 1.45 Crore) against which appeal was
pending before Rajasthan High Court. The Company has paid tax along with interest for Rs. 0.62 Crore (Previous
Year Rs. 0.62 Crore) under protest. Further the company has deposited Rs. 0.21 Crore on May 30, 2016. Further ,the
company has opted for New Amnesty Scheme 2016 and accordingly deposited 25 % of the disputed demand amount
and withdrawn appeal before the Hon’ble High Court.
(c) Corporate counter guarantees outstanding in respect of assignment agreements entered by the Company with different
assignees as at March 31, 2020 is Rs. Nil ( Previous Year Rs. 40.02 Crore) against which collateral deposit of Rs. Nil ( Previous
262 |
NOTES
Year Rs. 6.44 Crore) for the year ended March 31, 2020 is being provided to the assignees by the Company in the form of
Fixed Deposit Receipts. The Company does not anticipate any losses on account of the said corporate guarantees, in the
event of the rights under guarantee being exercised by the assignees.
(d) The Company in the ordinary course of business, has various cases pending in different courts, however, the management
does not expect any unfavourable outcome resulting in material adverse effect on the financial position of the Company.
(e) Capital commitments for acquisition of fixed assets at various branches as at the year end (net of capital advances paid)
(f) Corporate guarantees provided to Unique Identification Authority of India for Aadhaar verification of loan applications for
(g) Bank guarantees provided against court case for Rs. 0.05 Crore (Previous Year Rs. 0.03 Crore).
(h) Corporate guarantees provided to NABARD for loan taken by Indiabulls Commercial Credit Limited for Rs. 1,545.50 Crore
(Previous Year Rs. 2,015 Crore).
(34) Segment Reporting:
The Company’s main business is financing by way of loans for purchase or construction of residential houses, commercial real
estate and certain other purposes in India. All other activities of the Company revolve around the main business. Accordingly,
there are no separate reportable segments as per IND AS 108 dealing with Operating Segment.
(35) Disclosures in respect of Related Parties as per Indian Accounting Standard (IndAS) – 24 ‘Related Party Disclosures’.
(a) Detail of related party

Subsidiary Companies Indiabulls Commercial Credit Limited
(formerly Indiabulls Infrastructure Credit Limited)
Indiabulls Insurance Advisors Limited
Indiabulls Capital Services Limited
Indiabulls Collection Agency Limited
Ibulls Sales Limited
Indiabulls Advisory Services Limited
Indiabulls Asset Holding Company Limited
Indiabulls Asset Management Company Limited
Indiabulls Trustee Company Limited
Indiabulls Holdings Limited
Indiabulls Venture Capital Management Company Limited
(Subsidiary of Indiabulls Holdings Limited)
Indiabulls Venture Capital Trustee Company Limited(till March 8, 2019)
(Subsidiary of Indiabulls Holdings Limited)
Indiabulls Asset Management (Mauritius)
(Subsidiary of Indiabulls Commercial Credit Limited)
Nilgiri Financial Consultants Limited
(Subsidiary of Indiabulls Insurance Advisors Limited)
IHFL Lender Repayment Trust
ICCL Lender Repayment Trust
(Subsidiary of Indiabulls Commercial Credit Limited)
Indiabulls Housing Finance Limited- Employees Welfare Trust (from December 3, 2019)
| 263
NOTES
Associate Company OakNorth Holdings Limited
(Previously known as Acorn OakNorth Holdings Limited)(till March 30, 2020)
Key Management Personnel Mr. Sameer Gehlaut, Chairman & Executive Director
Mr. Gagan Banga, Vice Chairman/ Managing Director & CEO
Mr. Ashwini Omprakash Kumar, Deputy Managing Director
Mr. Ajit Kumar Mittal, Executive Director
Mr. Sachin Chaudhary, Executive Director
Dr K.C Chakrabarty, Independent Director (till October 26, 2019)
Mrs. Manjari Kacker, Non Executive Director (till September 19, 2018)
Justice Bhisheshwar Prasad Singh, Independent Director (till March 31, 2019)
Mr. Shamsher Singh Ahlawat, Independent Director
Mr. Prem Prakash Mirdha, Independent Director
Brig. Labh Singh Sitara, Independent Director (till March 31, 2019)
Justice Gyan Sudha Misra, Independent Director
Mr. Subhash Sheoratan Mundra, Independent Director
Mr. Satish Chand Mathur, Independent Director(from March 8, 2019)
(b) Significant transactions with related parties:

March 31, 2020 March 31, 2019
Finance
Secured Loans given
(Maximum balance outstanding during the year)*
- Subsidiary Companies 4,171.45 3,705.23
Total 4,171.45 3,705.23
-Key Management Personnel 0.12 11.07
Total 0.12 11.07
Investment in Equity Shares
- Subsidiary Companies - 2,725.05
Total - 2,725.05
Payment made for Redemption of Bonds to:
- Subsidiary Companies 500.00 230.00
Total 500.00 230.00
Corporate counter guarantees given to third parties for:(1)
Total 2,300.00 2,015.00
Assignment of Loans from
- Subsidiary Companies 5,408.47 -
Total 5,408.47 -
264 |
NOTES
March 31, 2020 March 31, 2019
Assignment of Loans to
- Subsidiary Companies - 1,071.49
Total - 1,071.49
Income
Income from Service Fee
Total 0.07 24.05
Interest Income on Loan
Total 215.69 125.96
Interest Income on Bonds
- Subsidiary Companies 41.07 -
Total 41.07 -
Dividend Income
- Subsidiary Companies - 13.54
Total - 13.54
Interest Expense on Bonds
Total 14.59 3.00
Salary / Remuneration (Consolidated)
Total 58.72 87.99
Total 35.83 58.54
Total 6.45 16.26
Total 16.12 12.94
Total 0.32 0.25
* Represents Maximum balance of loan outstanding during the year/period
| 265
NOTES
(c) Outstanding balance:

March 31, 2020 March 31, 2019
Secured Loans given:
Total 588.42 247.00
Investment in Bonds of:
- Subsidiary Companies 1,386.41 901.74
Total 1,386.41 901.74
Outstanding Balance of Borrowings in Bonds held by:
Total 552.96 97.50
Corporate counter guarantees given to third parties for:
Total 1,545.50 2,015.00
Assignment (Payable)/ Receivable (Net)
- Subsidiary Companies 109.12 (60.77)
Total 109.12 (60.77)
(d) Statement of Partywise transactions during the Year:
Nature of Transactions For the Year For the Year

ended ended
March 31, 2020 March 31, 2019
Amount Amount
Secured Loans Given*
Subsidiaries
– Indiabulls Commercial Credit Limited 4,171.45 3,705.23
Total 4,171.45 3,705.23
Directors
– Gagan Banga - 9.62
– Ajit Kumar Mittal - 0.18
Total 0.12 11.07
Investment in Equity Shares
Subsidiaries
– Indiabulls Commercial Credit Limited - 2,725.05
Total - 2,725.05
Payment made for Redemption of Bonds to:
Subsidiaries
– Indiabulls Commercial Credit Limited 500.00 230.00
Total 500.00 230.00
Corporate counter guarantees given to third parties for: (1) )
Subsidiaries
– Indiabulls Commercial Credit Limited 2,300.00 2,015.00
Total 2,300.00 2,015.00
266 |
NOTES
ended ended
March 31, 2020 March 31, 2019
Amount Amount
Assignment of Loans from
Subsidiaries
– Indiabulls Commercial Credit Limited 5,408.47 -
Total 5,408.47 -
Assignment of Loans to
Subsidiaries
– Indiabulls Commercial Credit Limited - 1,071.49
Total - 1,071.49
Income from Service Fee
Subsidiaries
– Ibulls Sales Limited - 24.00
Total 0.07 24.05
Interest Income on Loan
Subsidiaries
Total 215.69 125.96
Interest Income on Bonds
Subsidiaries
Total 41.07 125.96
Dividend Income
Subsidiaries
– Indiabulls Commercial Credit Limited - 13.54
Total - 13.54
Interest Expense on Bonds
Subsidiaries
Total 14.59 3.00
Remuneration to Directors
– K C Chakraborty 0.38 1.52
Total 35.83 58.54
Total 6.45 16.26
| 267
NOTES

ended ended
March 31, 2020 March 31, 2019
Amount Amount
– Ajit Kumar Mittal (0.01) 0.02
Total 16.12 12.94
– Manjari Kacker - 0.02
– Justice Bhisheshwar Prasad Singh - 0.05
– Shamsher Singh Ahlawat 0.08 0.04
– Prem Prakash Mirdha 0.05 0.05
– Labh Singh Sitara - 0.04
– Justice Gyan Sudha Misra 0.06 0.04
– Subhash Sheoratan Mundra - 0.01
– Satish Chand Mathur 0.07 -
– Subhash S Mundra 0.06 -
Total 0.32 0.25
* Represents Maximum balance of loan outstanding during the year
(e) The Company has established IBHFL lender repayment trust to which it transfers funds solely for the purpose of timely
repayment of its borrowings. As at March 31 , 2020, total funds amounting to Rs. 154.48 Crore (Previous Year Rs. 368.59
Crore) were lying with the trust for future repayments which have been included in Other financial assets.
(f) Breakup of outstanding Balances
Particulars For the Year For the Year

ended ended
March 31, 2020 March 31, 2019
Amount Amount
Secured Loan given
Subsidiaries
Investment in Bonds of:
Subsidiaries
– Indiabulls Commercial Credit Limited 1,386.41 901.74
Outstanding Balance of Borrowings in Bonds held by:
Subsidiaries
Assignment Receivable/ (Payable)
Subsidiaries
- Indiabulls Commercial Credit Limited 109.12 (60.77)
Corporate counter guarantees given to third parties for the Company
- Indiabulls Commercial Credit Limited 1,545.50 2,015.00
Related Party relationships as given above are as identified by the Company.
268 |
NOTES
(1) Disclosure related to Fair value of Corporte Gurantee given to Subsidiary as per IND AS 109, “Financial Instruments”:
Particulars For the Year For the Year

ended March 31, ended March 31,
2020 2019
Amount Amount
Fair Value Income on Corporate Gurantee
Subsidiaries
Total 12.43 1.47
Investment in
Subsidiaries
Total 9.76 41.63
Outstanding Balance of Unamortised Corporate Gurantee Income
Total 37.49 40.15
(36) (a) Expenditure in Foreign Currency:

March 31, 2020 March 31, 2019
Amount Amount
Legal & Professional Charges 7.67 1.64
Travelling & Conveyance 0.11 0.24
Direct Selling Agents Commission 0.05 0.30
Interest on Loans 353.36 243.94

March 31, 2020 March 31, 2019
Amount Amount
Fees on Bonds and ECB 15.75 11.08
Overseas Representative Office Expenses 0.32 0.56
Advertisement 0.04 0.16
Rent and Other Charges 0.14 0.24
Salaries 3.94 4.52
Miscellaneous Expenses - 0.09
Total 381.38 262.77
(b) Remittances during the year in foreign currency on account of dividends:
(i) Remittance during the Financial Year 2019-20
Pertains to Financial Year Interim No of Shareholders No. of Shares Amount

2019-20 1st Interim 2019-20 1 2,530,617 2.53
2019-20 2nd Interim 2019-20 1 1,483,932 1.19
2019-20 3rd Interim 2019-20 1 3,066,469 2.15
2019-20 4th Interim 2019-20 1 4,004,745 2.40
Total 11,085,763 8.27
| 269
NOTES
(ii) Remittance during the Financial Year 2018-19

Pertains to Financial Year Interim No of Shareholders No. of Shares Amount
2018-19 1st Interim 2018-19 1 2,756,581 2.76
2018-19 2nd Interim 2018-19 1 2,815,968 2.82
2018-19 3rd Interim 2018-19 1 2,740,614 2.74
2018-19 4th Interim 2018-19 1 2,701,506 2.70
Total 11,014,669 11.02
(37) Earnings Per Equity Share
Earnings Per Equity Share (EPS) as per Indian Accounting Standard (IndAS)-33 “Earnings Per Share”,:
The basic earnings per share is computed by dividing the net profit attributable to Equity Shareholders for the year by the weighted
average number of Equity Shares outstanding during the year. Diluted earnings per share are computed using the weighted
average number of Equity Shares and also the weighted average number of Equity Shares that could have been issued on the
conversion of all dilutive potential Equity Shares. The dilutive potential Equity Shares are adjusted for the proceeds receivable, had
the shares been actually issued at fair value.
Dilutive potential Equity Shares are deemed converted as of the beginning of the year, unless they have been issued at a later
date. The number of Equity Shares and potential diluted Equity Shares are adjusted for potential dilutive effect of Employee Stock
Option Plan as appropriate.

March 31, 2020 March 31, 2019
Profit available for Equity Shareholders (Amount) 2,159.91 3,729.26
Weighted average number of Shares used in computing Basic Earnings per Equity Share 427,543,766 426,849,544
(Nos.)
Add: Potential number of Equity share that could arise on exercise of Employee Stock 89,074 2,539,129
Options (Nos.)
Weighted average number of shares used in computing Diluted Earnings per Equity 427,632,840 429,388,673
Share (Nos.)
Face Value of Equity Shares - (Rs.) 2.00 2.00
Basic Earnings Per Equity Share - (Rs.) 50.52 87.37
Diluted Earnings Per Equity Share - (Rs.) 50.51 86.85
(38) In respect of amounts as mentioned under Section 124 of the Companies Act, 2013, there were no dues (Previous Year Rs. Nil)
required to be credited to the Investor Education and Protection Fund as on March 31, 2020.
(39) (1) Disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017(Refer Note 48):
(i) Disclosure for Capital to Risk Assets Ratio (CRAR)* :-
CRAR As at As at
March 31, 2020 March 31, 2019
Items
i) CRAR (%) 22.82% 20.83%
ii) CRAR - Tier I capital (%) 15.05% 14.33%
iii) CRAR - Tier II Capital (%) 7.77% 6.50%
iv) Amount of subordinated debt raised as Tier- II Capital 4,321.29 4,321.29
v) Amount raised by issue of Perpetual Debt Instruments 100.00 100.00
*The above CRAR has been computed after considering provisioning requirement as per NHB prudential norms and additional
ad-hoc provision as considered necessary by management on a prudent basis but not as per Ind AS ECL model.
270 |
NOTES
(ii) Exposure to Real Estate Sector:-
Category As at As at
March 31, 2020 March 31, 2019
a) Direct exposure 34,447.15 54,987.46
(i) Residential Mortgages -
Lending fully secured by mortgages on residential property that is
or will be occupied by the borrower or that is rented. Individual
housing loans up to Rs.15 lakh Rs. 1,649.34 crore(Previous Year
Rs.2,572.82 crore)
(ii) Commercial Real Estate - 13,879.66 16,885.21
Lending secured by mortgages on commercial real estates
(iii) Investments in Mortgage Backed Securities (MBS) and other

securitised exposures -
a. Residential 1.41 1.97
b. Commercial Real Estate. 456.76 125.26
b) Indirect Exposure - -
Fund based and non-fund based exposures on National Housing Bank
(NHB) and Housing Finance Companies (HFCs).
Note: The above computation is based on management’s estimates, assumptions and adjustments / Borrower’s
confirmation which have been relied upon by the auditors
(iii) Exposure to Capital Market
March 31, 2020 March 31, 2019
(i) direct investment in equity shares, convertible bonds, convertible 645.02 2,302.58
debentures and units of equity oriented mutual funds the corpus of which
is not exclusively invested in corporate debt;
(ii) advances against shares / bonds / debentures or other securities or on - -
clean basis to individuals for investment in shares (including IPOs / ESOPs),
convertible bonds, convertible debentures, and units of equity-oriented
mutual funds;
(iii) advances for any other purposes where shares or convertible bonds or - -
convertible debentures or units of equity oriented mutual funds are taken
as primary security;
(iv) advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds i.e. where the primary security other
than shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds 'does not fully cover the advances;
(v) secured and unsecured advances to stockbrokers and guarantees issued - -
on behalf of stockbrokers and market makers;
(vi) loans sanctioned to corporates against the security of shares / bonds / - -
debentures or other securities or on clean basis for meeting promoter's
contribution to the equity of new companies in anticipation of raising
resources;
(vii) bridge loans to companies against expected equity flows / issues; - -
(viii) All exposures to Venture Capital Funds (both registered and unregistered) - -
Total Exposure to Capital Market 645.02 2,302.58
| 271
NOTES
(iv) Asset Liability Management
Maturity Pattern of Assets and Liabilities as at March 31, 2020*:-
1 day to Over one Over 2 Over 3 to 6

30/31 days (1 month to 2 months to 3 months
month) months months
Liabilities
1,221.76 465.69 1,453.40 1,707.89
Borrowing from banks
1,485.85 162.36 1,030.32 1,876.27
46.20 55.50 503.00 3,065.00
Market borrowings
787.00 1,150.00 3,200.00 3,984.55
- - - -
Foreign Currency Liabilities
- - - -
Assets
4,150.39 1,543.92 1,287.23 3,636.39
Advances
2,465.32 1,885.95 1,342.19 3,927.39
5,608.28 81.18 151.75 467.43
Investments
17,123.06 7.74 148.35 769.93
207.25 35.74 37.60 1.22
Foreign Currency Assets
- - - 5.18
Over 6 Over 1 to 3 Over 3 to 5 Over 5 to 7
months to 1 years years years
year
Liabilities
4,248.99 17,319.88 6,384.03 283.33
5,047.75 22,347.07 10,576.15 466.67
1,518.50 14,369.60 2,660.00 4,337.00
Market borrowings
4,304.33 16,649.69 7,692.50 1,988.15
28.45 187.51 296.74 -
- 215.96 79.78 -
Assets
6,956.27 24,252.22 10,683.80 3,645.16
Advances
8,334.08 29,297.10 14,094.19 6,688.57
862.19 1,975.26 3,064.33 75.77
Investments
2,180.79 553.21 64.43 216.47
35.01 187.42 221.94 -
- 129.71 9.49 -
Over 7 to 10 Over 10 years Grand Total
years
Liabilities
62.50 - 33,147.47
- - 42,992.44
9,953.23 - 36,508.03
Market borrowings
12,737.13 - 52,493.35
- - 512.70
- - 295.74
Assets
3,972.61 3,182.53 63,310.52
Advances
6,788.87 7,940.22 82,763.88
561.35 4,249.37 17,096.91
Investments
1,163.05 4,946.02 27,173.05
- - 726.18
- - 144.38
*In addition to the investments shown in the table above, the company also had cash, cash equivalents and bank balances
of Rs. 9,547.09 Crores (previous year Rs. 10,368.62 Crores)
Note: In computing the above information certain estimates, assumptions and adjustments have been made by the
Management for its regulatory submission which have been relied upon by the auditors.
(Figures in respect of previous years are stated in italics)
272 |
NOTES
(2) Capital to Risk Assets Ratio (CRAR)(Proforma) as per IGAAP (considering Nil risk weightage on Mutual fund investments):-
CRAR As at As at
March 31, 2020 March 31, 2019
Items
i) Adjusted CRAR - (Total) (%) - 22.92% 22.84%
ii) Adjusted CRAR - Tier I capital (%) - 15.12% 15.71%
iii) Adjusted CRAR - Tier II Capital (%) - 7.80% 7.13%
Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017 are
as follows(Refer Note 48):-
(i) Break up of ‘Provisions and Contingencies’
Particulars Year Ended Year Ended

March 2020 March 2019
1. Provisions for depreciation on Investment 636.96 -
2. Provision made towards Income tax 399.69 1,233.35
3. Provision towards NPA(including Counter Cyclical provisions) 1,250.87 547.63
4. Provision for Standard Assets (including provision on Teaser Loan Rs. Nil (532.00) (198.99)
Crores, CRE-RH for Rs. Nil Crores & CRE for Rs. Nil Crores (Previous Year
Teaser Loan Rs. Nil Crores, CRE-RH for Rs. Nil Crores & CRE for Rs. Nil
Crores).
5. Other Provision and Contingencies:- 23.22 23.70
i) Gratuity Expense 9.28 10.72
ii) Leave Encashment Expense 0.31 4.00
iii) Superannuation Expense 13.62 8.98
(ii) Break up of Loan & Advances and Provisions thereon
Particulars Housing Loans Non Housing Loans

Standard Assets Year Ended Year Ended Year Ended Year Ended
March 2020 March 2019 March 2020 March 2019
a) Total Outstanding Amount 43,375.68 64,920.82 14,689.41 11,466.73
b) Provisions made 319.47 428.25 171.53 103.65
Sub-Standard Assets
a) Total Outstanding Amount 607.92 221.27 429.58 179.32
Doubtful Assets – Category-I
Doubtful Assets – Category-II
Doubtful Assets – Category-III
a) Total Outstanding Amount 0.24 0.27 0.42 -
b) Provisions made 0.24 0.27 0.42 -
| 273
NOTES
Particulars Housing Loans Non Housing Loans

Standard Assets Year Ended Year Ended Year Ended Year Ended
March 2020 March 2019 March 2020 March 2019
Loss Assets
a) Total Outstanding Amount
b) Provisions made
TOTAL
a) Total Outstanding Amount 43,996.42 65,467.06 15,428.02 11,781.86
b) Provisions 414.30 544.30 334.35 164.79
Further as at March 31, 2020 , the Company has additional provision of Rs 83.64 Crore ( Previous Year Rs.66.22 Crore ) and
Rs 702.08 Crore (Previous Year Rs.144.92 Crore) for Standard Assets/other contingencies and for non standard assets (
including Doubtful and loss assets) respectively.
(iii) Concentration of Public Deposits

Total Deposits of twenty largest depositors NA NA
Percentage of Deposits of twenty largest depositors to Total Deposits of the HFC NA NA
(iv) Concentration of Loans & Advances

Total exposure to twenty largest borrowers/customers 13,942.19 13,063.42
Percentage of Loans & Advances to twenty largest borrowers to Total Advances 23.75% 17.12%
of the HFC
(v) Concentration of all Exposure (including off-balance sheet exposure)

Total Exposure to twenty largest borrowers / customers 13,942.19 13,063.42
Percentage of Exposures to twenty largest borrowers / customers to Total 23.75% 17.12%
Exposure of the HFC on borrowers / customers
(vi) Concentration of NPAs

Total Exposure to top ten NPA accounts 1,051.69 675.09
274 |
NOTES
(vii) Sector-wise NPAs
Sl. Sector Percentage of

No NPAs to Total
Advances in that
sector as on
March, 31 2020
A. Housing Loans:
1 Individuals 1.42%
2 Builders/Project Loans 1.70%
3 Corporates -
4 Others -
B. Non-Housing Loans:
1 Individuals 1.47%
2 Builders/Project Loans 6.59%
3 Corporates 5.94%
4 Others -
(viii) Movement of NPAs

(I) Net NPAs to Net Advances (%) 1.80% 0.71%
(II) Movement of NPAs (Gross)
a) Opening balance 863.70 898.77
b) Additions during the year* 1,059.66 402.94
c) Reductions during the year* 564.01 438.01
d) Closing balance 1,359.35 863.70
(III) Movement of Net NPAs
b) Additions during the year 474.13 154.66
c) Reductions during the year - -
d) Closing balance 1,015.73 541.60
(IV) Movement of provisions for NPAs (excluding provisions on standard
assets)
b) Provisions made during the year 1,250.87 547.63
c) Write-off/write-back of excess provisions 1,231.70 737.36
d) Closing balance 341.28 322.11
*Net off NPA written off during the year
| 275
NOTES
(ix) Rating assigned by Credit Rating Agencies and migration of rating during the year :-
Deposits Instrument Name of rating Date of rating / Rating assigned Borrowing limit
agency revalidation or conditions
imposed by
rating agency, if
any (Amt. in Rs.
Billion)
Cash Credit Crisil Rating 24-Mar-20 CRISIL AA 77.95
Long-Term Bank Facility Crisil Rating 24-Mar-20 CRISIL AA 0.33
Proposed Long-Term Bank Facility Crisil Rating 24-Mar-20 CRISIL AA 167.22
Non-Convertible Debentures Crisil Rating 24-Mar-20 CRISIL AA 294.80
Subordinate Debt Crisil Rating 24-Mar-20 CRISIL AA 25.00
Retail Bonds Crisil Rating 24-Mar-20 CRISIL AA 150.00
Short Term Non-Convertible Debenture Crisil Rating 24-Mar-20 CRISIL A1+ 10.00
Short Term Commercial Paper Program Crisil Rating 24-Mar-20 CRISIL A1+ 250.00
NCD Issue Brickwork 23-Mar-20 BWR AA+ 270.00
Ratings
Subordinate Debt Issue program Brickwork 23-Mar-20 BWR AA+ 30.00
Ratings
Perpetual Debt Issue Brickwork 23-Mar-20 BWR AA 1.50
Ratings
Secured NCD Brickwork 23-Mar-20 BWR AA+ 68.01
Ratings
Unsecured Subordinated NCD Brickwork 23-Mar-20 BWR AA+ 1.99
Ratings
Long Term Debt CARE Ratings 14-Feb-20 CARE AA 320.02
Subordinate Debt CARE Ratings 14-Feb-20 CARE AA 50.00
Prepetual Debt CARE Ratings 14-Feb-20 CARE AA- 2.00
Cash Credit CARE Ratings 7-Mar-20 CARE AA 80.00
Long-Term Bank Facility CARE Ratings 7-Mar-20 CARE AA 330.66
Short Term Bank Facility CARE Ratings 7-Mar-20 CARE A1+ -
Proposed Long-Term/Short-Term Facility CARE Ratings 7-Mar-20 CARE AA 114.34
Public Issue of Non-Convertible CARE Ratings 14-Feb-20 CARE AA 61.72
Debentures
Public Issue of Subordinate Debt CARE Ratings 14-Feb-20 CARE AA 1.99
Short Term Commercial Paper Program CARE Ratings 14-Feb-20 CARE A1+ 150.00
NCD Issue ICRA Limited 17-Feb-20 ICRA AA 373.60
Long Term Bank Facilities ICRA Limited 17-Feb-20 ICRA AA 470.00
Subordinate Debt ICRA Limited 17-Feb-20 ICRA AA 50.00
Short Term Debt Programme (CP) ICRA Limited 17-Feb-20 ICRA A1+ 25.00
Long Term Corporate Family Rating Moody’s 24-Mar-20 B3 -
Foreign and Local Currency Senior Moody’s 24-Mar-20 (P) B3 $ 350 Mn
Secured MTN program Rating
276 |
NOTES
(x) Customers Complaints

March 31, 2020 March 31, 2019
a) No. of complaints pending at the beginning of the year 2 5
b) No. of complaints received during the year 1,094 685
c) No. of complaints redressed during the year 1,086 688
d) No. of complaints pending at the end of the year 10 2
(xi) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the HFC
The Company has not exceeded the limits for SGL / GBL
(xii) Disclosure of Penalties imposed by NHB and other regulators
An amount of Rs. 5,000(Rupees Five thousand only) (Previous Year Rs. 5,000(Rupees Five thousand only)) has been levied
as penalty by National Housing Bank in terms of provisions of paragraph 29(5) of the Housing Finance Companies(NHB)
Directions, 2010 on account of Submission of incorrect information on “nature & tenure of credit rating & sourcing fee
amortized” as on March 31, 2018 (Previous Year Non classification of investment in associates under Capital Market
Exposure as on March 31, 2017).
(xiii) Gold loan
The Company has not granted any loans against collateral of gold jewellery (Previous Year: Nil).
(40) Additional disclosures required by the NHB notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017 for
Securitisation are as follows (Refer Note 48):-
3.5.1 Outstanding amount of securitised assets as per books of the SPVs sponsored by the HFC and total amount of exposures
retained by the HFC as on the date of balance sheet towards the Minimum Retention Requirements (MRR)

March 31, 2020 March 31, 2019
(1) No of SPVs sponsored by the HFC for securitisation transactions* NA NA
(2) Total amount of Securitised assets as per books of SPVs Sponsored NA NA
(3) Total amount of exposures retained by the HFC towards the MRR as on the date NA NA
of balance sheet
I) Off-balance sheet exposures towards Credit Concentration NA NA
II) On-balance sheet exposures towards Credit Concentration NA NA
(4) Amount of exposures to securitisation transactions other than MRR NA NA
I) Off-balance sheet exposures towards Credit Concentration NA NA
II) On-balance sheet exposures towards Credit Concentration NA NA
3.5.2 Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction

March 31, 2020 March 31, 2019
(i) No. of accounts 846.00 139.00
(ii) Aggregate value (net of provisions and write offs) of accounts sold to SC / RC 802.69 379.96
(iii) Aggregate consideration* 776.95 371.97
(iv) Additional consideration realized in respect of accounts transferred in earlier NA NA
years
(v) Aggregate gain/loss over net book value (25.74) (7.99)
| 277
NOTES
During the current financial year, the company sold Rs. 776.95 Crore [Previous Year Rs.371.97 Crore] of loan assets to IB ARC. The
transactions are conducted on an arm’s length basis. IB ARC as a part of its appraisal process conducts separate, independent
external valuations, and also obtains a recovery rating by a SEBI registered credit rating agency. To date IB ARC has recovered
Rs. 441.53 Crore, representing 32.44% of the total loan assets of Rs.1361.23 Crore sold to IB ARC to date. Strong recovery track
underlines the Company’s appraisal and valuation processes.
3.5.3 Details of Assignment transactions undertaken by HFCs

March 31, 2020 March 31, 2019
(i) No. of accounts(nos) 23,164 92,090
(ii) Aggregate value (net of provisions) of accounts assigned 4,776.49 21,768.92
(iii) Aggregate consideration 4,776.49 21,768.92
(iv) Additional consideration realized in respect of accounts transferred in earlier Nil Nil
years
(v) Aggregate gain / loss over net book value Nil Nil
3.5.4 (A) Details of non-performing financial assets purchased:

March 31, 2020 March 31, 2019
1) (a) No. of accounts purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2) (a) Of these, number of accounts restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil
3.5.4 (B) Details of non-performing financial assets sold:

March 31, 2020 March 31, 2019
1) No. of accounts sold Nil Nil
2) Aggregate outstanding Nil Nil
3) Aggregate consideration received Nil Nil
(41) Disclosure on Moratorium – COVID 19 Regulatory Package – Asset Classification And Provisioning for the year ended March 31,
2020 pursuant to the Notification Vide:DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020:
Particulars Amount Rs.

(i) Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended, 5,039.72
in terms of paragraph 2 and 3 of the above mentioned RBI circular.*
(ii) Respective amount where asset classification benefits is extended* 1,434.98
(iii) Provisions made during the quarter ended 31 March 2020 in terms of paragraph 5 of the above 71.75
circular
(iv) Provisions adjusted during the respective accounting periods against slippages and the residual -
provisions in terms of paragraph 6
*excludes loan which is assigned or securitized by the Company
278 |
NOTES
(42) Fair value measurement
42.1 Valuation principles
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, 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.
42.2 Valuation governance
The Company’s process to determine fair values is part of its periodic financial close process. The Audit Committee
exercises the overall supervision over the methodology and models to determine the fair value as part of its overall
monitoring of financial close process and controls. The responsibility of ongoing measurement resides with business units.
Once submitted, fair value estimates are also reviewed and challenged by the Risk and Finance functions.
42.3 Assets and liabilities by fair value hierarchy
The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:

Amount
Currency options - 25.81 - 25.81
Debt Securities - 4,394.15 - 4,394.15
Mutual Funds - 3,385.86 - 3,385.86
Total financial investment measured at FVTPL - 8,617.76 - 8,617.76
Equities 18.40 2,885.90 - 2,904.30
Total financial investments measured at FVOCI 18.40 2,885.90 - 2,904.30
Total assets measured at fair value on a recurring 18.40 11,503.66 - 11,522.06
basis
Forward contracts - - - -
Currency swaps - - - -
Total financial liabilities measured at fair value - 187.82 - 187.82
| 279
NOTES

Amount
Debt Securities - 9,989.69 - 9,989.69
Mutual Funds - 6,691.57 - 6,691.57
Total financial investment measured at FVTPL - 17,061.74 - 17,061.74
Equities - 2,805.78 - 2,805.78
Total financial investments measured at FVOCI - 2,805.78 - 2,805.78
basis
Total financial liabilities measured at fair value - 105.96 - 105.96
42.4 Valuation techniques
Government debt securities
Government securities are financial instruments issued by Central and State Govenments. Fair value of these instruments
is derived based on the indicative quotes of price and are classified under level 2.
Debenture and Bonds, Commercial Papers, Certificate of Deposits
Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at
reporting date and are classified as Level 2.
Equity instruments
Equity instruments in non-listed entities are initially recognised at transaction price and re-measured and valued on a case-
by-case and classified as Level 2. Fair value is the price of recent transaction as there has not been a significant lapse of time
since the last transaction took place.
Mutual Funds
Open ended mutual funds are valued at NAV declared by respective fund house and are classified under Level 2.
280 |
NOTES
Interest rate swaps, Currency swaps and Forward rate contracts
The fair value of Interest rate swaps is calculated as the present value of estimated cash flows based on observable yield
curves. The fair value of Forward foreign exchange contracts and currency swaps is determined using observable foreign
exchange rates and yield curves at the balance sheet date.
42.5 There have been no transfers between Level 1, Level 2 and Level 3 for the year ended March 31, 2020 and March 31, 2019.
42.6 Fair value of financial instruments not measured at fair value
Set out below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments that
are not carried at fair value in the financial statements. This table does not include the fair values of non–financial assets
and non–financial liabilities.

Amount
Financial Assets:
Bank balances other than cash and cash 1,421.69 - - - *
equivalent
Debt securities 32,092.12 - 31,834.17 - 31,834.17

Amount
Financial Assets:
Bank balances other than cash and cash 665.90 - - - *
equivalent
| 281
NOTES

Amount
Debt securities 48,188.39 - 48,014.47 - 48,014.47
42.7 Valuation methodologies of financial instruments not measured at fair value
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the company’s financial statements. These fair values were calculated for
disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables.
Debt Securities & Subordinated liabilities
These includes Subordinated debt, secured debentures,unsecured debentures. The fair values of such liabilities are
estimated using a discounted cash flow model based on contractual cash flows using actual or estimated yields and
discounting by yields incorporating the credit risk. These instrument are classified in Level 2.
Investments - at amortised cost
These includes Government Securities and Corporate Bonds which are held for maturity. Fair value of these instruments is
derived based on the indicative quotes of price and are classified under level 2.
*Assets and Liabilities other than above
The carrying value of assets and liabilities other than investments at amortised cost, debt securities and subordinated
liabilities represents a reasonable approximation of fair value.
(43) Transfers of financial assets
Securitisations: The company uses securitisations as a source of finance. Such transaction resulted in the transfer of contractual
cash flows from portfolios of financial assets to holders of issued debt securities. Such deals resulted in continued recognition of
the securitised assets since the company retains substantial risks and rewards.
The table below outlines the carrying amounts and fair values of all financial assets transferred that are not derecognised in their
entirety and associated liabilities.
March 31, 2020 March 31, 2019
Securitisations
Carrying amount of transferred assets measured at amortised cost 1,355.36 770.68
Carrying amount of associated liabilities (1,398.58) (768.35)
The carrying amount of above assets and liabilities is a reasonable approximation of
fair value
Transfers of financial assets that are derecognised in their entirety
The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
Thus, Pre-transition securitisation deals continues to be de-recognised in their entirety
282 |
NOTES
The table below outlines details for each type of continued involvement relating to transferred assets derecognised in their
entirety.
Carrying amount of Fair value of continuing Maximum

continuing involvement involvement exposure to
in statement of financial loss
position
Balance with Liabilities Balance with Liabilities
banks banks
Amount
Type of continuing involvement
Securitisation
March 31, 2020 601.46 - 601.46 - 601.46
March 31, 2019 936.63 - 936.63 - 936.63
Assignment Deals
During the period ended 31st March 2020, the Company has sold some loans and advances measured at amortised cost as per
transfer of substantially all the risks and rewards relating to assets being transferred to the buyer being met, the assets have been
derecognised.
The management has evaluated the impact of the assignment transactions done during the year for its business model. Based on
the future business plans, the Company’s business model remains to hold the assets for collecting contractual cash flows.
Loans and advances measured at amortised cost Year Ended Year Ended
Carrying amount of derecognised financial assets 18,791.01 26,373.79
Gain/(loss) from derecognition (for the respective financial year) 123.92 606.96
Since the company transferred the above financial asset in a transfer that qualified for derecognition in its entirety therefore the
whole of the interest spread ( over the expected life of the asset) is recognised on the date of derecognition itself as interest-only
strip receivable (“Receivables on assignment of loan”) and correspondingly recognised as profit on derecognition of financial
asset.
During the period ended 31st March 2020, the Company has sold some loans and advances measured at amortised cost as per
transfer of substantially all the risks and rewards relating to assets being transferred to the buyer not being met, the assets have
been re-recognised.
Loans and advances measured at amortised cost As at As at

Carrying amount of transferred assets measured at amortised cost 1,794.08 -
Carrying amount of associated liabilities (1,843.96) -
The carrying amount of above assets and liabilities is a reasonable approximation of fair value
Sale of Investments measured at amortised cost
The Company derecognised investment in bonds measured at Amortised cost having carrying value of Rs. 830.83 crores due to
sale of these investments, resulting in a loss of Rs. 28.38 crores. The sale of such Investments is infrequent and was made due to
the unanticipated funding needs and thus this sale does not impact the hold to collect objective of the Company and the asset
portfolio continues to be classified and measured at amortised cost.
| 283
NOTES
(44) Capital management-
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders of the Company.The primary objective of the Company’s capital management is to
maximise the shareholder value. The Company monitors capital using a capital adequacy ratio as prescribed by the NHB guidelines.
Refer note 39(1)(i) for details.
(45) Risk Management
Introduction and risk profile
Indiabulls Housing Finance Ltd. (IBHFL) is a housing finance company in India and is regulated by the National Housing Bank (NHB).
In view of the intrinsic nature of operations, the company is exposed to a variety of risks, which can be broadly classified as credit
risk, market risk, liquidity risk and operational risk. It is also subject to various regulatory risks.
Risk management structure and policies
As a lending institution, Company is exposed to various risks that are related to lending business and operating environment.
The Principal Objective in Company ‘s risk management processes is to measure and monitor the various risks that Company is
subject to and to follow policies and procedures to address such risks. Company ‘s risk management framework is driven by Board
and its subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk Management
Committee. 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, conservative loan to value, and required term cover for insurance. The
major types of risk Company face in businesses are liquidity risk, credit risk, interest rate risk.
(A) Liquidity risk
Liquidity risk is the potential for loss to an entity arising from either its inability to meet its obligations or to fund increases
in assets as they fall due without incurring unacceptable cost or losses.
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents (including marketable securities) to
meet its obligations at all times. It also ensures having access to funding through an adequate amount of committed credit
lines. The Company’s treasury department is responsible for liquidity and funding as well as settlement management. In
addition, processes and policies related to such risks are overseen by senior management and the management regularly
monitors the position of cash and cash equivalents vis-à-vis projections. Assessment of maturity profiles of financial assets
and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered
while reviewing the liquidity position.
The table below summarises the maturity profile of the undiscounted cash flows of the company’s financial liabilities.
In FY2019-20 ‘Upto one month borrowings from banks and others’ includes repo borrowings of Rs. 1,468.97 Crores
(Previous Year Rs. 1,462.92 Crores) with specific collateral of investments in government securities:
Particulars As At March 31, 2020

Upto One Over one 2 years to 5 more than 5 Total
month months to 2 years years
years
Borrowings from Banks and Others 4,365.71 42,908.23 21,693.18 20,100.54 89,067.66
Lease liability recognised under Ind 5.54 125.21 135.38 69.04 335.16
AS 116
Other liabilities 252.28 68.31 5.37 - 325.96
Temporary Overdrawn Balances as 759.87 - - - 759.87
per books
Corporate Guarantee for Subsidiary - 1,324.00 221.50 - 1,545.50
5,830.66 46,784.61 22,112.05 20,179.40 94,906.71
284 |
NOTES

Upto One Over one 2 years to 5 more than 5 Total
month months to 2 years years
years
Borrowings from Banks and Others 3,179.72 58,055.79 36,671.58 19,534.25 117,441.34
Other liabilities 121.28 41.57 (0.02) - 162.83
Temporary Overdrawn Balances as 1,712.13 - - - 1,712.13
per books
Derivatives 2.30 (111.29) 118.84 - 9.85
Corporate Guarantee for Subsidiary 16.74 1,478.79 519.47 - 2,015.00
5,975.66 63,581.14 37,341.96 19,541.87 126,440.63
(B) Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities according to when they are expected to be recovered or settled
after factoring in rollover and prepayment assumptions.
Particulars Balance as at March 31, 2020

Within 12 After 12 Months Total
Months
ASSETS
Financial Assets
Cash and cash equivalents 11,491.60 - 11,491.60
Bank balance other than cash and cash equivalents 553.00 868.69 1,421.69
Derivative financial instruments 329.82 409.36 739.18
Receivables
(i) Trade Receivables 5.32 - 5.32
(ii) Other Receivables - - -
Loans 17,146.32 41,947.05 59,093.37
Investments 4,778.78 11,387.98 16,166.76
Other Financial Assets 616.87 770.45 1,387.32
Non-financial Assets
Current tax assets (net) - 968.45 968.45
Deferred tax assets (net) - 349.95 349.95
Property, Plant and Equipment - 113.41 113.41
Rou Assets 56.03 191.90 247.93
Other Intangible assets - 14.23 14.23
Other non-financial assets 391.90 172.56 564.46
Non-current asset held for sale 88.90 - 88.90
Total Assets 35,458.54 57,194.03 92,652.57
| 285
NOTES
Months
Payables
(I) Trade Payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 11.56 - 11.56
enterprises and small enterprises
Debt Securities 5,263.18 26,828.94 32,092.12
Borrowings (Other than Debt Securities) 9,455.39 27,154.53 36,609.92
Subordinated Liabilities - 4,338.60 4,338.60
Other financial liabilities 2,994.01 645.10 3,639.11
Non-Financial Liabilities
Current tax liabilities (net) 60.81 - 60.81
Provisions 3.23 186.20 189.43
Deferred tax liabilities (net) - - -
Other non-financial liabilities 593.60 - 593.60
Equity
Equity Share capital - 85.51 85.51
Other Equity - 14,844.09 14,844.09
Total Liabilities and Equity 18,382.90 74,269.67 92,652.57
The table below shows an analysis of assets and liabilities according to when they are expected to be recovered or settled
after factoring in rollover and prepayment assumptions.

Months
ASSETS
Financial Assets
Cash and cash equivalents 13,356.59 - 13,356.59
Bank balance other than cash and cash equivalents 450.21 215.69 665.90
Derivative financial instruments - 135.75 135.75
Receivables - -
(i) Trade Receivables 12.12 - 12.12
(ii) Other Receivables - - -
Loans 17,040.31 59,844.05 76,884.36
Investments 16,785.85 9,140.10 25,925.95
Other Financial Assets 486.75 974.09 1,460.84
Non-financial Assets
Current tax assets (net) - 708.79 708.79
Deferred tax assets (net) - - -
Property, Plant and Equipment - 125.18 125.18
Rou Assets - - -
286 |
NOTES

Months
Other Intangible assets - 15.34 15.34
Other non-financial assets 680.15 131.74 811.89
Non-current asset held for sale - - -
Total Assets 48,811.98 71,290.73 120,102.71
Payables
(I) Trade Payables
(i) total outstanding dues of micro enterprises and - - -
small enterprises
(ii) total outstanding dues of creditors other than 27.14 - 27.14
micro enterprises and small enterprises
Debt Securities 13,458.37 34,730.02 48,188.39
Borrowings (Other than Debt Securities) 9,619.95 34,066.86 43,686.81
Subordinated Liabilities - 4,329.38 4,329.38
Other financial liabilities 4,640.06 449.52 5,089.58
Non-Financial Liabilities
Current tax liabilities (net) 53.02 - 53.02
Provisions 3.11 163.03 166.14
Deferred tax liabilities (net) - 553.91 553.91
Other non-financial liabilities 643.24 0.22 643.46
Equity
Equity Share capital - 85.48 85.48
Other Equity - 17,173.44 17,173.44
Total Liabilities and Equity 28,445.52 91,657.19 120,102.71
(C) Credit Risk
Credit Risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform
such obligation is impaired resulting in economic loss to the company. IBHFL’s Credit Risk Management framework is
categorized into following main components:
- Board and senior management oversight
- Organization structure
- Systems and procedures for identification, acceptance, measurement, monitoring and controlling risks.
It is the overall responsibility of the board appointed Risk Management Committee to approve the company’s credit risk
strategy and lending policies relating to credit risk and its management. The policies are based on the company’s overall
business strategy and the same is reviewed periodically.
The Board of Directors constituted Risk Management Committee keeps an active watch on emerging risks the company is
exposed to. The Risk Management Committee(“RMC”) defines loan sanctioning authorities, including process of vetting by
credit committees for various types/values of loans. The RMC approves credit policies, reviews regulatory requirements,
and also periodically reviews large ticket loans and overdue accounts from this pool.
| 287
NOTES
The Risk Management Committee approves the ‘Credit Authority Matrix’ that defines the credit approval hierarchy and the
approving authority for each group of approving managers/ committees in the hierarchy.
To maintain credit discipline and to enunciate credit risk management and control process there is a separate Risk
Management department independent of loan origination function. The Risk Management department performs
the function of Credit policy formulation, credit limit setting, monitoring of credit exceptions / exposures and review /
monitoring of documentation.
Derivative financial Instruments
Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as recorded
on the balance sheet. With gross–settled derivatives, the company is also exposed to a settlement risk, being the risk that
the company honours its obligation, but the counterparty fails to deliver the counter value.
Analysis of risk concentration
The Company’s concentrations of risk for loans are managed by counterparty and type of loan (i.e. Housing and Non-
Housing as defined by NHB). Housing and Non housing loans are given to both individual and corporate borrowers.The
table below shows the concentration of risk by type of loan.
Year Ended Year Ended

March 31, 2020 March 31, 2019
Housing 44,306.74 65,060.03
Non Housing 14,786.64 11,824.32
The Company’s concentrations of risk ( for financial assets other than loans and advances ) are managed by industry sector.
The following table shows the risk concentration by industry for the financial assets of the company:-

Financial Government* Others Total
services
Financial asset
Bank balance other than Cash and cash 1,421.69 - - 1,421.69
equivalents
Investments 12,927.43 3,165.23 74.10 16,166.76
* Government sector includes exposure to Central Government, State Governments, Government Corporations and
Government Companies.

Financial Government Others Total
services
Financial asset
Bank balance other than Cash and cash 665.90 - - 665.90
equivalents
Investments 24,404.15 1,521.80 - 25,925.95
288 |
NOTES
(D) Market Risk
Market Risk is the risk that the value of on and off-balance sheet positions of a financial institution will be adversely
affected by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit spreads
and/or commodity prices resulting in a loss to earnings and capital.
Financial institutions may be exposed to Market Risk in variety of ways. Market risk exposure may be explicit in portfolios
of securities / equities and instruments that are actively traded. Conversely it may be implicit such as interest rate risk due
to mismatch of loans and deposits. Besides, market risk may also arise from activities categorized as off-balance sheet item.
Therefore market risk is potential for loss resulting from adverse movement in market risk factors such as interest rates,
forex rates, equity and commodity prices.
The Company’s exposure to market risk is primarily on account of interest rate risk and Foreign exchange risk.
(i) Interest Rate Risk:-
Interest rate risk arises when there is a mismatch between positions, which are subject to interest rate adjustment
within a specified period. The company’s lending, funding and investment activities give rise to interest rate risk. The
immediate impact of variation in interest rate is on the company’s net interest income, while a long term impact is
on the company’s net worth since the economic value of the assets, liabilities and off-balance sheet exposures are
affected. While assessing interest rate risks, signals given to the market by RBI and government departments from
time to time and the financial industry’s reaction to them shall be continuously monitored.
Due to the very nature of housing finance, the company is exposed to moderate to higher Interest Rate Risk. This risk
has a major impact on the balance sheet as well as the income statement of the company. Interest Rate Risk arises
due to:
i) Changes in Regulatory or Market Conditions affecting the interest rates
ii) Short term volatility
iii) Prepayment risk translating into a reinvestment risk
iv) Real interest rate risk.
In short run, change in interest rate affects Company’s earnings (measured by NII or NIM) and in long run it affects
Market Value of Equity (MVE) or net worth. It is essential for the company to not only quantify the interest rate risk
but also to manage it proactively. The company mitigates its interest rate risk by keeping a balanced portfolio of
fixed and variable rate loans and borrowings. Further company carries out Earnings at risk analysis and maturity gap
analysis at quarterly intervals to quantify the risk.
Interest Rate sensitivity
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:
Particulars Basis Points Effect on Profit / Effect on Profit /

loss and Equity loss and Equity
for the year for the year
2019-20 2018-19
Borrowings*
Increase in basis points +25 (94.91) (144.39)
Decrease in basis points -25 94.91 144.39
Advances
Increase in basis points +25 179.04 238.53
Decrease in basis points -25 (179.04) (238.53)
Investments
Increase in basis points +25 0.34 (60.63)
Decrease in basis points -25 (0.34) 60.63
*The impact of borrowings is after considering the impact on derivatives contracts entered to hedge the interest rate
fluctuation on borrowings.
| 289
NOTES
(ii) 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 the
foreign currency borrowings taken from banks through the FCNR route and External Commercial Borrowings (ECB).
The Company follows a conservative policy of hedging its foreign currency exposure through Forwards and / or Currency
Swaps in such a manner that it has fixed determinate outflows in its function currency and as such there would be no
significant impact of movement in foreign currency rates on the company’s profit before tax (PBT) and equity.
(iii) Equity Price Risk
Equity price risk is the risk that the fair value of equities decreases as the result of changes in the level of equity indices and
individual stocks. The non–trading equity price risk exposure arises from equity securities classified as FVOCI. A 10 per cent
increase in the value of the company’s FVOCI equities at March 31, 2020 would have increased equity by Rs. 290.43 Crore
(Previous Year Rs. 280.58 Crore). An equivalent decrease would have resulted in an equivalent but opposite impact.
(E ) Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external
events. Operational risk is associated with human error, system failures and inadequate procedures and controls. It is the
risk of loss arising from the potential that inadequate information system; technology failures, breaches in internal controls,
fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation problems.
Operational risk exists in all products and business activities.
IBHFL recognizes that operational risk event types that have the potential to result in substantial losses includes Internal
fraud, External fraud, employment practices and workplace safety, clients, products and business practices, business
disruption and system failures, damage to physical assets, and finally execution, delivery and process management.
The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks through a control
framework and by monitoring and responding to potential risks. Controls include effective segregation of duties, access,
authorisation and reconciliation procedures, staff education and assessment processes, such as the use of internal audit.
(46) (i) Adoption of new accounting standard on Leases – Ind AS 116
The Company has adopted the new standard, Ind AS 116 Leases with effect from 1st April, 2019 using the modified
retrospective approach as per para C8 (c)(i) of Ind AS 116. The Company has taken the cumulative impact of applying
the standard to retained earnings as on the date of initial application (1st April, 2019). Accordingly, the Company has not
restated the comparative information.
On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of Rs. 295.67 Crore and
a lease liability of Rs. 295.67 Crore.
In statement of profit and loss for the current period, the nature of expenses in respect of operating leases has changed
from lease rent in previous periods to depreciation cost for the right-to-use asset and finance cost for interest accrued on
lease liability.
In the context of initial application, the Company has exercised the option not to apply the new recognition requirements
to short-term leases.
(ii) The lease liabilities as at 1 April 2019 can be reconciled to the operating lease commitments as of 31 March 2019, as
follows:
Amount
Operating lease commitments as at 31 March 2019 379.50
Weighted average incremental borrowing rate as at 1 April 2019 9.00%
Lease liabilities as at 1 April 2019 295.67
290 |
NOTES
(iii) For leases previously accounted for as operating lease, the Company availed following practical expedients transition:
The Company also applied the available practical expedients wherein it:
• Used a single discount rate to a portfolio of leases with reasonably similar characteristics
• Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial
application
• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application
• Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease
(iv) Leases where the Company is a Lessee
(a) The Company has lease contracts for various office premises used in its operations. Leases of office premises generally
have lease terms between 1 to 12 years. The Company’s obligations under its leases are secured by the lessor’s title
to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.
The Company also has certain leases of office premises with lease terms of 12 months or less. The Company applies
the ‘short-term lease’ recognition exemptions for these leases.
(b) Leases are shown as follows in the Company’s balance sheet and profit & loss account
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
Particulars Building - Office Total

Premises
Opening balance as at 1 April 2019 on implementation of Ind AS 116 295.67 295.67
Additions 20.90 20.90
Deletion (Terminated during the period) (13.45) (13.45)
Depreciation expense 55.19 55.19
Closing net carrying balance 31 March 2020 247.93 247.93
Set out below are the carrying amounts of lease liabilities (included under Borrowings (Other than Debt Securities))
and the movements during the period:
Particulars Amount
Opening balance as at 1 April 2019 on implementation of Ind AS 116 295.67
Additions 20.90
Deletion (Terminated during the period) (14.23)
Accretion of interest 25.33
Particulars Amount
Payments (68.57)
As at 31 March 2020 259.10
Current 45.34
Non-current 213.76
| 291
NOTES
(c) Amounts recognized in the Statement of Profit and Loss for the financial Year 2019-20
Particulars Amount
Depreciation expense of right-of-use assets 55.19
Interest expense on lease liabilities 25.33
Gain on termination of leases (0.77)
Expense relating to short-term leases (included in other expenses) 7.62
Total amount recognised in profit or loss 87.37
(v) Lease disclosures under Ind-AS 17 for the comparative year ended 31 March 2019
The total lease payments recognised in the Statement of Profit and Loss towards the said leases are as follows:
Particulars Year ended

March 31, 2019
Lease Payment (Rent) 66.26
(vi) Lease Commitment as on 31 March 2019
The Company has taken office premises on Lease and Leave & License basis at various locations in India. Lease rent /
License fees aggregating to Rs. 66.26 Crore in respect of the same have been charged to the Statement of Profit and Loss.
The agreements are executed for periods ranging from 11 months to 12 years with a renewable clause. In many cases, the
agreements also provide for termination at will by either party by giving a prior notice period between 30 to 90 days. The
minimum lease rentals outstanding as at March 31, 2019, are as under:
Particulars Minimum Lease

Rentals
Year ended
March 31, 2019
Not later than One year 74.71
Later than One year but not later than Five years 215.28
Later than Five Years 89.51
Total 379.50
(47) The outbreak of COVID–19 virus continues to spread across the globe including India, resulting into a significant decline and
volatility in financial markets and a significant decrease in global and India’s economic activities. The Government of India
announced a strict 40-day nation-wide lockdown till May 3, 2020 to contain the spread of the virus, which was further extended
till June 08, 2020. This has led to significant disruptions and dislocations for individuals and businesses. The recent directions from
Government allows for calibrated and gradual withdrawal of lockdown and partial resumption of selected economic activities. The
extent to which the COVID 19 pandemic will impact the Company’s business is dependent on several factors including, but not
limited to, pace of easing of the lockdown restrictions.
A. In accordance with RBI guidelines relating to CoVID-19 Regulatory Package dated 27 March 2020 and 17 April 2020, the
Company has granted moratorium of three months on the payment of all instalments falling due between 1 March 2020
and 31 May 2020 to all eligible borrowers who have requested for the moratorium. The RBI via press release dated May
22, 2020 has permitted lending institutions to extend the moratorium by another three months, i.e., from June 1, 2020 to
August 31, 2020. The Company will be providing option for extending the moratorium to its eligible borrowers’ basis its
Board approved policy. In accordance with the guidance from Institute of Chartered Accountant of India (“ICAI”), extension
of the moratorium to borrowers by the Company pursuant to the RBI guidelines relating to COVID 19 Regulatory Package
dated March 27, 2020 and April 17, 2020 and RBI press conference, by itself is not considered to result in a SICR for a
borrower.
The Company is mainly engaged in providing individual housing loans, loans against property (LAP) and project finance
for real estate development. Operations of all these segments were impacted over the past few years and consequent to
COVID 19 pandemic are expected to be further significantly impacted, including erosion in the asset values of the collateral
held by the Company. The Company has assessed each of its loan portfolios and performed a comprehensive analysis of the
staging of each of its borrower segment. Further, for project finance loans, the Company has reviewed the project status,
292 |
NOTES
funding plans and analysis of the borrowers for large projects. Further, the Company has also analysed its outstanding
exposures viz a viz the valuation of the collateral/underlying property based on third party valuation reports. Based on the
above analysis, the Company has recorded an expected credit loss provision of Rs.3,473.37 Crs in respect of its loans and
advances at 31 March 2020, to reflect, among other things, an increased risk of deterioration in macro-economic factors
caused by COVID-19 pandemic. The ECL provision has been determined based on estimates using information available
as of the reporting date and given the unique nature and scale of the economic impact of this pandemic, the expected
credit loss including management overlay is based on various variables and assumptions, which could result in actual
credit loss being different than that being estimated. Further, as a result of this pandemic, the credit performance and
repayment behaviour of the customers needs to be monitored closely. In the event the impact of pandemic is more severe
or prolonged than anticipated, this will have a corresponding impact on the carrying value of the financial assets, results of
operation and the financial position of the Company.
B. The Company has considered the following key matters in determining its liquidity position for the next 12 months:
through guarantees from the Government of India. The Company has evaluated these schemes and is considering
applications to seek fund under the schemes;
b. Current status / outcomes of discussions with the Company’s lenders, seeking moratorium on the Company’s debt
service obligations to such lenders;
Based on the detailed assessment of the monthly cash inflows and outflows for next 12 months and the management has
concluded that it will be able to meet its obligations.
(48) The Company has complied with the NHB Directions, 2010 including Prudential Norms and as amended from time to time.
Additional information required in terms of Housing Finance Companies – Corporate Governance (National Housing Bank)
Directions, 2016 NHB(ND)/DRS/REG/ MC-07/2018, 02 July, 2018 and Notification no. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated
February 09, 2017 read with NHB circular no. NHB(ND)/DRS/Policy Circular No.89/2017-18 dated June 14, 2018 have been
presented based on information compiled by management in accordance with accounting standards notified under section 133
of the Companies Act 2013 (“the Act”), read together with paragraph 7 of the Companies (Accounts) Rule 2014; the Companies
(Accounting Standards) Amendment Rules, 2016 and the guidelines issued by the National Housing Bank to the extent applicable
(previous GAAP).
(49) Previous Year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification
/ disclosures.
Mumbai
July 3, 2020
| 293
Annexure: Statement containing the salient features of the financial statements of subsidiaries / associate companies / joint ventures
[Pursuant to first proviso to Sub-section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the Companies (Accounts) Rules, 2014 - AOC-1]
294 |
Part "A" Subsidiaries
(Amount ₹ in Crores)
Name of the Subsidiary Date of Year Currency Share Other Total Assets Total Details of Turnover Profit Provision Profit / Proposed % of
Companies acquisition of Capital Equity Liabilities Investments / Total / (Loss) for (Loss) after Dividend Shareholding
Subsidiary (Surplus / Revenue before Taxation Taxation (including as on March
(Deficit)) Taxation Corporate 31
Dividend Tax)
1. Indiabulls Collection Agency 08-03-2013* 2019-20 ₹ 0.15 22.19 22.67 0.33 - 1.31 1.26 0.32 0.94 - 100%
Limited 2018-19 0.15 21.25 21.77 0.42 0.05 1.52 1.48 0.42 1.06 -
2. Ibulls Sales Limited 08-03-2013* 2019-20 ₹ 0.05 10.72 11.18 0.41 - 0.63 (0.47) 0.02 (0.49) - 100%
2018-19 0.05 11.23 0.96 0.44 10.76 27.97 2.08 0.61 1.47 -
3. Indiabulls Insurance Advisors 08-03-2013* 2019-20 ₹ 0.05 (102.12) 5.50 107.62 0.05 0.30 0.22 0.06 0.16 - 100%
Limited 2018-19 0.05 (102.28) 5.32 107.65 0.10 0.41 0.34 0.09 0.25 -
4. Nilgiri Financial Consultants 08-03-2013* 2019-20 ₹ 0.05 22.09 14.10 0.80 8.84 7.76 6.94 1.77 5.17 - 100%
Limited 2018-19 0.05 16.91 12.43 0.64 5.17 4.57 3.78 1.08 2.70 -
5. Indiabulls Capital Services 08-03-2013* 2019-20 ₹ 5.00 (11.70) 8.16 20.58 5.72 2.86 2.53 0.57 1.96 - 100%
Limited 2018-19 5.00 (13.66) 11.39 20.10 0.05 0.62 0.25 0.07 0.18 -
6. Indiabulls Commercial Credit 08-03-2013* 2019-20 ₹ 247.80 4,159.15 14,796.87 11,980.35 1,590.43 2,191.28 27.25 7.44 19.81 - 100%
Limited (Formerly Indiabulls 2018-19 247.80 4,127.25 16,688.61 12,730.78 417.22 1,760.60 447.28 124.28 323.00 -
Infrastructure Credit Limited)
7. Indiabulls Advisory Services 08-03-2013* 2019-20 ₹ 2.55 4.90 0.39 0.26 7.32 0.88 0.77 0.19 0.58 - 100%
Limited 2018-19 2.55 4.32 6.91 0.09 0.05 0.46 0.29 0.09 0.20 -
8. Indiabulls Asset Holding 08-03-2013* 2019-20 ₹ 0.05 - 0.05 - - - (0.01) - (0.01) - 100%
Company Limited 2018-19 0.05 - 0.06 0.01 - 0.01 - - - -
9. Indiabulls Asset Management 08-03-2013* 2019-20 ₹ 170.00 26.62 50.92 6.29 151.99 64.80 27.98 7.00 20.98 - 100%
Company Limited 2018-19 170.00 5.51 54.22 7.61 128.90 47.82 4.22 1.17 3.05 -
10. Indiabulls Trustee Company 08-03-2013* 2019-20 ₹ 0.50 - 0.51 0.01 - 0.13 (0.03) - (0.03) - 100%
Limited 2018-19 0.50 0.04 0.56 0.02 - 0.15 0.08 0.02 0.06 -
11. Indiabulls Holdings Limited 08-03-2013* 2019-20 ₹ 0.15 (0.05) 0.05 - 0.05 - - - - - 100%
2018-19 0.15 (0.04) 0.06 - 0.05 - - - - -
12. Indiabulls Venture Capital 08-03-2013* 2019-20 ₹ 0.05 (0.01) 0.05 0.01 - - (0.02) - (0.02) - 100%
Management Company 2018-19 0.05 0.01 0.06 - - - - - - -
Limited
13. Indiabulls Venture Capital 08-03-2013* 2019-20 ₹ N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Trustee Company Limited** For the period from 0.05 (0.05) - - - - - - - - 0%
01 April 2018 to 08
March 2019
14. Indiabulls Asset Management 18/07/2016 2019-20 ₹ 2.12 (1.87) 0.34 0.09 - 0.01 (0.75) - (0.75) - 100%
Mauritius 2018-19 1.55 (1.14) 0.53 0.12 - - (0.31) - (0.31) -
*These Companies became subsidiary of Indiabulls Housing Finance Limited (IBHFL) consequent upon amalgamation of Indiabulls Financial Services Limited with IBHFL w.e.f. 8th March, 2013
**Struck off during the previous year
Mumbai
July 3, 2020
Annexure: Statement containing the salient features of the financial statements of subsidiaries / associate companies / joint
ventures
[Pursuant to first proviso to Sub-section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the Companies
(Accounts) Rules, 2014 - AOC-1]
Part "B" Associates
(Amount ₹ in Crores)
SI Name of Associate OakNorth Holdings Limited

No.
1 Latest audited Balance Sheet date March-20 March-19
2 Date on which the Associate was associated or acquired November 13, 2015 November 13, 2015
3 Share of Associate/Joint Venture Held by the Company on the year end
Number 541,615 541,615
Amount of Investment in Associate/Joint Venture 438.86 438.86
Extend of Holding% 15.71% 16.70%
4 Description of how there is significant influence Note- A Note- A
5 Reason why associate/joint venture is not consolidated N.A. N.A.
6 Networth attributable to shareholding as per latest audited Balance Sheet N.A. 4,994.26
7 Profit & Loss for the Year
i. Considered in Consolidation 33.88 32.74
ii. Not Considered in Consolidation 179.19 143.07
Note-A: There is significant influence due to precentage (%) of share capital
Chairman / Whole Time Vice Chairman / Managing Whole Time Director CFO Company Secretary
Director Director & CEO DIN : 03341114 New Delhi Gurugram
DIN : 00060783 DIN : 00010894 Mumbai
London Mumbai
July 3, 2020
| 295
Detail of property(ies) owned by the Company:-

1. Plot KH. No. 478, Village Bijwasan, New Delhi, Delhi.
2. A-703, The lshwar C.G.H.S. Ltd., Plot No. 4, Dwarka Sector-12, New Delhi, Delhi.
3. Plot No. 12, Mehsana, Ahmedabad”. GUJRAT (Ahemdabad).
4. Plot No.19, Mehsana, Ahemdabad.
5. Flat No. B-2002, Indiabulls Green, Tower-B2, Chennai Tamilnadu.
6. Commercial Shop -Shop No. 101, Lower Ground Floor Elite Arcade, Mall Road, Ludhiana, Punjab.
7. Saideep Bungalow, Plot No. 169, Shree Krishna Nagar, Boriwali (East), Mumbai, Maharashtra.
296 |
Printone Solu ons
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Indiabulls House
Indiabulls Finance Centre, Senapa Bapat Marg, Elphinstone Road,
Mumbai - 400 013.
www.indiabullshomeloans.com

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Forward-looking statements

BOARD OF DIRECTORS REGISTRAR & TRANSFER AGENT

• To enable a hassle free and

• To ensure housing ﬁnance is

Home Loans for Resident Indians Home Loans for NRIs

Loan Against Property Home Loan Balance Transfer

• Almost 600 ins tu onal partners: 18 PSU banks, 16

Market cap at lis ng: ₹ 253 Cr

Total Dividend Paid (Rs. Cr.) Dividend Per Share

Total ₹ 11,433 ₹ 302.3

Smart City Home Loans

Our pioneering home loan fulﬁllment pla orm-

Through superior customer experience and service, IBHFL aims

Besides home loan fulﬁllment and customer service, the eHome

Customers can also avail of insurance solu ons and investment

As customers and other stakeholders use the pla orm on an

1st APRIL 2019 - 31st MARCH 2020

Jan Swasthya Kalyan Vahika (JSKV)-Mobile Medical Vans

Indiabulls Founda on Charitable

Cle and Palate Surgeries

Kumud- Sanitary Napkin Paush k Aahar-Nutri on Supplement

Solar Renewable Energy

Traﬃc Awareness Environment and Beau ﬁca on

Vintage Awards Leadership Branch Visit

Interna onal Yoga Day

Independence Day Celebra ons Christmas Celebra ons

Indiabulls Home Loans Marathon Press Club Awards

Blood Dona on Camp

Cricket Live Screening Diwali Celebra ons

Ranked 20th among India’s Best

India’s Best Workplaces in BFSI - 2019

India’s Best Workplaces in NBFC - 2019

Ajit Mi al Ashwini Kumar Sachin Chaudhary

Mukesh Garg Nafees Ahmed Ashwin Mallick

Ramnath Shenoy M. S. Walia Ripudaman Bandral

Rajiv Gandhi Somil Rastogi Naveen Uppal

Vice Chairman, MD & CEO

Tackling COVID-19 I would like to extend my sincere thanks and apprecia on to

Particulars Year ended March Year ended March

Particulars FY 19-20 (IndAS) FY 18-19 (IndAS)

For Indiabulls Housing Finance Limited

Annexure forming part of the

FAMILIARISATION PROGRAMME FOR NON- EXECUTIVE COMMITTEES OF THE BOARD

VIGIL MECHANISM fraud, bribery, corruption, employee misconduct, illegality,

Secretarial Audit Report

Secretarial Compliance Report of Indiabulls Housing

Annual Report on Corporate Social

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

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

FORM NO. MGT- 9

EXTRACT OF ANNUAL RETURN

Sl. Name & Address of the Company CIN/GLN Holding/ % Of Applicable

Sl. Name & Address of the Company CIN/GLN Holding/ % Of Applicable

(iii) Change in Promoters’ Shareholding (Specify if there is no change)

Sl. Shareholding at the beginning Cumulative Shareholding during

Sl. Name Shareholding Date Increase/ Reason Cumulative Shareholding during

2 ORTHIA DEVELOPERS 16,512,863 3.87 01-Apr-2019 - - - -

Sl. Name Shareholding Date Increase/ Reason Cumulative Shareholding during

Sl. Name Shareholding at the Shareholding at the end of