EFSL

EW/Sec/2021/147
August 11, 2021
BSE Limited National Stock Exchange of India

P J Towers, Limited
Dalal Street, Exchange Plaza,
Fort, Bandra Kurla Complex, Bandra (E),
Mumbai – 400 001. Mumbai – 400 051.
Scrip Code:- 532922 Symbol:– EDELWEISS
Dear Sir/ Madam,
Sub: Annual Report for the financial year 2020-21
Enclosed is the Annual Report of the Company for the financial year ended March 31,
2021 including the Notice convening the 26th Annual General Meeting of the Members to
be held on Friday, September 3, 2021.
Kindly take the same on record.
Thanking you,
Yours faithfully,
For Edelweiss Financial Services Limited
Tarun Khurana
Company Secretary
Encl.: as above
Edelweiss Financial Services Limited

Corporate Identity Number: L99999MH1995PLC094641
Registered Office: Edelweiss House, off. C.S.T. Road, Kalina, Mumbai - 400 098 Tel No.: +91 22 4009 4400 Fax: +91 22 4019 4890 www.edelweissfin.com
A Purposeful
Reflection
ANNUAL REPORT 2020 21

CONTENTS
F Y21 Overview 02
Our Response to Covid19 06
Our Guiding Principles 12
Our Diversified Business Model 14
Our Governance 22
Our Customer Experience 24
Our People 26
Our Technology 28
Le er from the Chairman 30
Sustainability Report 42
EdelGive Founda on 59
Board of Directors 65
Company Informa on 69
Board's Report 70
Management Discussion & Analysis 76
Integrated Repor ng 95
Corporate Governance Report 125
Consolidated Financial Statements 141
Standalone Financial Statements 296
No ce 389
Awards & Recogni on 409
The references to Zen symbols and principles in our Annual Report are
based on informa on available publicly. Readers of the Annual Report
are advised to independently verify facts and informa on.
A Purposeful Reflec on
The year gone by has been like never before, with a pandemic of epic
propor ons tes ng us, as anxiety, fear and anguish coursed through the
world. One that has united humanity together, compelling us to pause and
look inward, urging us to bring about a posi ve systemic shi that leaves
no one behind. Tapping into the reservoir of inner resilience – mentally,
physically and emo onally, it meant stepping back without stepping away,
to reflect mindfully, reset our inner compass and move ahead with
renewed vigor.
At Edelweiss as well, the last year was a journey of resilience,

determina on and persistence. As an organisa on, we have always
believed in reinven ng ourselves during downturns and coming back
stronger. While we derived strength from our values to help us stay
grounded and mindful, we resolutely went about further strengthening
our organisation, transforming it to be futureready.
In a year when the world became more conscious of the interconnected

nature of life, through this Annual Report, we find inspiration in the
principles of Zen. We set course for the future by being more mindful of
our purpose, finding greater balance in our businesses and becoming
more empathetic to the needs of all our stakeholders.
As we culminate the first 25 years of our journey, we take the inherent

strength of our businesses and the wisdom and learnings from the years
gone by and take a fresh guard as we look forward to the next 25 years!
Edelweiss Annual Report 202021 l 01

FY21
OVERVIEW
FINANCIAL HIGHLIGHTS
Revenue
(consolidated) Consolidated PAT Ex-Insurance PAT
`2.65 billion `4.61 billion
`108.49 billion
STRONG BALANCE SHEET & LIQUIDITY
Strong Net Worth Debt Equity Ratio
`85.42 2.5x
billion*
Declined from 4.4x in FY19
Strong Liquidity Reduced Borrowings
to
`68
`256.95
billion billion**
declined by 41% over FY19
*Net worth inclusive of MI and CDPQ investment in CCD; excludes EWM equity l **Borrowings are excluding CBLO & CCDs, accrued interest and EWM borrowings
02 | FY21 Overview
VALUE UNLOCKING IN EDELWEISS WEALTH MANAGEMENT (EWM)
38.5%
Successfully closed PAG Edelweiss will hold 38.5% stake Distribution of value, through the
Partnership in EWM with an option to increase demerger and subsequent listing
it to ~44%
WELL CAPITALISED BUSINESSES

High Capital Adequacy
CAPAD of 25%+ in Credit Solvency ratio of more than

and ARC businesses 200% in insurance businesses
ROBUST CUSTOMER FRANCHISEE
Growing Customer Assets Increasing Customer Base
Increased to
`2,808 ~2.1 million
billion
35% YoY growth demonstrating the 42% YoY growth

continued trust reposed by customers
Edelweiss Annual Report 2020-21 | 03

ASSET MANAGEMENT
India’s Leading Alternative Assets Platform
AuM
9x growth ~`300 Largest fund
since FY16 billion raise in a year
~ `80 billion
Among the fastest growing Asset Management companies
up 53%
Mutual Fund AuM Equity Assets Net Inflow Retail folios #5.5 lacs Investor Base ~420,000
nearly doubled to `36 billion 19x growth over last 5 years up from ~275,000 in
~`550 billion (vs outflows of `550 billion FY20
since last year for the industry)
ASSET RECONSTRUCTION: Leading ARC in the country
Steady Fee Income Robust Recoveries
`54 billion
`8 billion Total recoveries over last

five years ~`274 billion
04 | FY21 Overview
INSURANCE
Life Insurance – among the fastest General Insurance – digitally enabled

growing companies fast growing company
Crossed `4 billion 25% YoY growth 49% YoY growth in Gross 2.2 x growth in no. of
in APE in Individual APE Direct Premium Income policies issued to ~188,200
(GDPI)
CREDIT: Moving to Asset Light business
Focus on Asset Light Retail Total Retail Credit collection Rapid sell down and reduction in
Credit model, through efficiency at 96% in March’21 wholesale book, scaled down ECLF
partnership with Banks book by 35% from FY19 levels
WEALTH MANAGEMENT: 2nd Largest non-bank Wealth Manager in India
Assets under Advice(AuA) – 5.3x Strong Customer Franchise

growth in 5 years to ~`1.55 trillion UHNI: ~2,600
(`295 billion in FY16) Affluent clients: ~700,000

Our Response
to COVID-19
Extending
COMPASSION,
Delivering
HOPE
The Cherry Blossom ‘Sakura’, is a timeless exhibit of the transient nature of life, reminding us that after every fall,
there is a season of spring, urging us to revel in the promise of a better tomorrow.
06 | Our Response to COVID-19

02
OUR RESPONSE TO COVID-19
At Edelweiss, mindful of the uncertainty and unpredictability caused by COVID-19, we compassionately committed ourselves
to the well-being of all our stakeholders. We prioritised safety and well-being over all else. While our digital preparedness
enabled us to adapt nimbly, operate efficiently, empower our people, offer seamless business continuity and meet customer
expectations, we drew upon our collective strength to navigate the difficult times and reinvented ourselves to better support
the needs of our customers and society in a transitory world.
AS A RESPONSIBLE CORPORATE CITIZEN

EdelGive Foundation significantly stepped up its efforts to support vulnerable communities through its NGO partners,
offering them not only financial assistance but also working hand in hand to ensure minimum disruption to their ongoing
programmes.
In FY21, we funded and Partnered with 46 NGOs in providing aid Emphasised on providing urgent aid and relief
raised over `1 billion for and relief to people residing in difficult through our grassroot partners, who are at the
COVID-related work geographies and vulnerable communities centre of relief and response work in difficult
geographies and vulnerable communities
Edelites collectively raised Contribution directed towards helping Contributed `20 million to PM Cares Fund and
`3.2 million to support affected families with cash transfers, food `5 million to CM Relief Fund, Maharashtra
COVID-relief initiatives grains, oxygen and health supplies, etc.
EdelGive also became a founding signatory to the Common Charter for the Indian Donor and Philanthropic Community
– an initiative created to offer collective support to NGOs, signed by some of India's leading philanthropies such as
Ford Foundation, Wipro Limited, Rohini Nilekani Philanthropies and Oxfam India, agreeing to abide by a common
set of values as funders.

03
EdelGive’s
With the second wave hitting the country, declaration of emergency Approach:
Need-based
lockdowns, curfews, acute shortage of oxygen and the limitations of and Timely
our infrastructure to address the magnitude of the problem, we have Support
sensitive communities across the globe joining us in battling the crisis.
The nationwide lockdown has not only had an adverse impact on
already distressed communities but also the grassroots organisations
who continued to work with such communities while barely managing `
to survive themselves. We fear that organisations and the communities
they serve will only be pushed further to the brink.
In these times of uncertainty, it is our mission to ensure that the
relief measures trickles down to the grassroots, for the vulnerable Support to Building a network
communities, who need it the most. Thus, at EdelGive, we are Grantees across of funders for
15+ states Aiding and sustained &
looking at COVID relief through both short and long-term approaches. empowering continued support
poor, displaced &
nemployed families
u
• Short term – Support to grassroots organisations engaged in immediate relief activities such as providing emergency ration
kits, oxygen and health supplies and awareness generation activities etc.
• Launched The GROW Fund (Grassroots Resilience Ownership and Wellness) a unique collective of global and Indian
philanthropists, working towards jointly supporting and sustaining 100 grassroot organisations across India, over a period of
24 months.
OUR RESPONSIBILITY TOWARDS OUR PEOPLE

The lockdown was the first of its kind we have ever witnessed. While Edelweiss was proactive in handling the situation and
transitioning to working from home, this year, the majority of our focus was to ensure that transition smoothly. We prioritised
employee safety and well-being while at the same time ensured that business continued to operate at the same levels of
efficiency as earlier.
Our Preparation Focus areas during the transition

A Central Task Force was set in conjunction with business A three-tier people strategy has been crafted after a
teams, all businesses’ Business Continuity Plan (BCP) detailed deliberation and introspection of external and
were evaluated and associated risk assessments were internal factors. As an organisation, the primary pillars
completed. of our people strategy are:
•
Employee safety and well-being
•
Communication
•
Productivity

One of our guiding principles is – ‘We will take care of our people’ and in unprecedented times like these, the primary
element of our people strategy is Employee’s safety and well-being.
• ~90% of our employees have been operating from • Special leaves (up to 14 days) if an employee or a family
home or other remote locations member tests positive
• We have taken all the required measures for our office • Support to family of departed employees:
premises in order to make it safer for our critical • Life insurance payments up to 3x of CTC and ex-gratia
resources who are required to come to work
• Medical insurance, education assistance and offer of
• COVID-19 Helpline: An exclusive helpline was set up to employment extended to bereaved family members
connect employees with a qualified doctor who will give on a case-to-case basis
WHO/GOI verified information, quell myths and address
queries about COVID-19 • Employee Development:
• COVID-19 Counselling Helpline services: Another • Focus on online learning content that is relevant to
exclusive helpline was set up for employees where they an individual
can reach out to trained counsellors for any support • Reimbursing courses from online learning sites –
that they may need through this sensitive phase in case Coursera, Udemy, LinkedIn Learning
they experience fatigue, stress and anxiety
• Employee Wellness Sessions:
• Our Group Medical Insurance Policy covers employees
• Webinars for managing stress and anxiety,
and their insured family members for hospitalisation for
meditation, yoga, creating a collaborative and
quarantine and further treatment
positive co-parenting plan, stocking your food the
• Incident Room: 24x7 COVID helpline with on-ground smart way, foods to boost your immunity and so on
response team, tie-ups for tests, plasma, oxygen
• Virtual Events – Talent shows, jamming sessions,
concentrators, hospital admissions
fitness challenges, masterchef – an inhouse cooking
• Onsite Vaccination Drives and Inoculation competition, virtual gaming sessions and
Reimbursements for all employees and their families celebrations
Communication Productivity
• Leader connects and townhalls prioritising health and • Technology Support: Enhanced support for digital
wellness connectivity and focus on productivity along with a
• Employee Outreach/Support group set up to express host of cybersecurity initiatives
solidarity and support each other • Guidelines and Sessions on – How to manage team,
work from home – best tips, how to be productive
during lockdown and how to collaborate in virtual
world

05
Resumption
COVID-19 has been a great eye opener and has brought forth our vulnerabilities as a society. It has redefined the way we lead
our lives, the way we work and indeed the way we connect. In such changing times, with the increase in infectious and lifestyle
diseases, it is even more important that we create a safe environment and lifestyle for us and our communities.
The magnitude of the crisis has been big and there is no laid-out strategy to follow in these difficult times. However, we have
detailed out our resumption strategy and the highlights are:
• Re-evaluation and identification of critical resources and a detailed risk assessment for each employee
• Phase wise resumption plan for each business and corporate function
• SOPs and guidelines for:
• Ensuring business continuity
• Ensuring health and safety of all employees and customers
• Facilitating a uniform set of standards amongst all Edelweiss offices on safety and operating procedures
Showing empathy, being authentic, expressing care and concern towards fellow colleagues is core to our initiatives of wellness.
OUR RESPONSIBILITY TOWARDS OUR CUSTOMERS AND PARTNERS

We knew that in such unprecedented times, our customers would be anxious and would need all the hand-holding we could
provide. We went the extra mile to ensure authentic experiences. Our motto was simple – demystify the ambiguity and educate
them on the best way forward.
Edelweiss extended the EMI moratorium for MSMEs Edelweiss Tokio Life Insurance reimagined customer
experience by leveraging technology
• Extended the EMI moratorium in line with the RBI
guidelines, helping those most impacted by the • Introduced 'Dial for success', a digital tool that helped
lockdown – small businesses and entrepreneurs convert face-to-face advisory to digital advisory, making
it easier for our customers to protect themselves
• Launched special pre-approved loans as per the
Government's Aatma Nirbhar Bharat Abhiyaan, • Enhanced non-medical limits; used credit bureau
providing capital to MSMEs as they emerge out of scores and income in lieu of financial documents for
the lockdown underwriting and leveraged the scores to waive
medicals for Term and Savings plans
• Introduced a WhatsApp hotline number and facilitated
seamless online claim intimation and tracking
• Introduced a dedicated medical helpline for customers
to access GOI/WHO verified COVID-19 information
Edelweiss Mutual Fund enabled seamless digital
investments and advisories
• Leveraging digital platforms like Edelweissmf.com,
Galaxy, Bharatbond.in, Edelweiss Mutual fund enabled
seamless digital investments
• Conducted numerous investment and advisory sessions
Edelweiss Tokio Life Insurance launched
to dispel uncertainty and share expert advice
COVID Shield+
• India’s first individual COVID life insurance policy
helping policyholders to secure their savings against the
ongoing pandemic

Edelweiss General Insurance waived off the 30 day Edelweiss-Gallagher introduced a Pandemic Group
waiting period Insurance Cover for the informal sector
• Waived off the 30 day wait period to ease claim • Addressed the need for business owners to safeguard
settlement the well-being of their workforce
• Covered everything from normal hospitalisation to ICU • Covers food delivery agents, informal sector workers,
treatment factory workers, hospital frontline staff, healthcare
providers and pharmaceutical manufacturers
• Covered domiciliary hospitalisation benefit as well as
alternative treatments under AYUSH • Helped instill confidence in the community and allowed
commerce to continue

Edelweiss General Insurance gave vehicle owners
the option to SWITCH off/on their motor insurance Edelweiss Wealth Management used technology to
bridge the physical gap
• Permitted vehicle owners to switch their motor
insurance on and off, based on usage • Relationship Managers facilitated Edelweiss Mobile
Trader (EMT) adoption amongst clients, helping them
• A driver-based motor insurance policy
remain connected to markets remotely as per their
(under IRDAI's Regulatory Sandbox)
convenience
• Brought cost savings to customers who have been
• Customers and partners were equipped with advice
sparingly using their vehicles in recent times
on their physical and financial health via webinars with
• BOLT, the self-survey app, enabled remote inspections industry experts
and offered instant settlements
Edelweiss General Insurance leveraged on Edelweiss Institutional Equities enabled virtual

technological edge corporate access
• Open API gateway, data lake, enhanced partner portals • Continued to provide global investors access to
and new product customisation modules. This enables corporates and industry experts in India via virtual
us to connect and integrate with our partners delivery platforms
seamlessly
• Topics included – Economic impact of and policy choices
• First within the industry to rollout open API gateway for during COVID-19, ESG investments in a post COVID-19
the ecosystem of business partners and developers world, among others
enabling Plug & Play integration

Our Guiding
Principles
ANCHORING
the present,
NAVIGATING
the future
The stacked stones or Cairns are markers used across ages to help people stay on the right path.
Representing mindfulness, they remind us to remain aligned with the universe and stand tall in challenging times.
12 | Our Guiding Principles

OUR GUIDING PRINCIPLES
Over the last 25 years, our Guiding Principles have been our Cairns – constant, unwavering and showing us the
‘right way’. In the past year, when the pandemic posed unprecedented challenges to humankind and the business environment,
our 13 Guiding Principles brought balance to our decision making. Reflecting our ideals, culture and ethics, they enabled us to
stay true to our long-term vision of creating consistent value for all our stakeholders.
We are a Thinking Organisation. We constantly bring Our Reputation and Image is more important than
thought to everything we do. Our clients' and our any financial reward. Reputation is hard to build and
own success depends on our ability to use greater even harder to rebuild. It is impacted by our ability
ideation and more imagination in our approach. to think for our clients maintain confidentiality by
our adherence to our value system.
We are Fair to our clients, our employees and all
stakeholders. We Obey and Comply with the rules of the land.
We maintain the highest standard of integrity and
honesty. When we are unclear, we seek clarifications.
We take care of our People. Our policies – in spirit
and in letter – ensure transparency and equal
opportunity for all. We go beyond the normal goals We Respect Risk. Our business is going to be a
of attracting, recruiting, retaining and rewarding fine constant challenge of balancing risks and rewards.
talent. We ensure that every individual in Edelweiss Our ability to constantly keep one eye on risk will
has an opportunity to achieve their fullest potential. guide us through this fine balance.
We operate as a Partnership, internally and Our Financial Capital is a critical resource for
externally. Though individuals are very often growth. We endeavour to grow, protect and use
brilliant, we believe teamwork and collaboration our financial capital wisely.
always ensures a better and more balanced
organisation. We also treat our clients as partners
Our Customer Experience defines us. We strive
and show them the same respect and consideration
to make it outstanding at all times.
that we would towards our internal team members.
We focus on the Long-Term. Though the world We Listen and Fulfil our customers' needs.
will change a lot in the coming years and our Listening is the start of the relationship wherein we
assumptions for the future may not hold up, we understand their needs and fulfil them with the most
reflect on the long-term implications of our actions. appropriate products and solutions.
Even when we make short-term decisions, we are
aware of the long-term implications.
We Satisfy the Needs of all stakeholders;
shareholders who entrust us with their capital,
We focus on Growth for our clients, employees and employees who create the organisation, customers
shareholders. who are the reason we exist and society which gives
us the resources and opportunity to create value.

Our Diversified
Businesses
FORTIFYING
for the long-term,
Forging ahead
RESILIENTLY
Koi fish are an adaptable species, capable of thriving in varied bodies of freshwater. Purpose driven,
they are known for their resilience and strength, as they tenaciously swim upstream to reach their destination.
14 | Our Diversified Business Model

OUR DIVERSIFIED BUSINESS MODEL
At Edelweiss, much like the ‘Koi’ our diversified businesses have forged ahead tenaciously in testing times. They have demonstrated
resilience while seeking opportunities for sustainable and profitable growth. Powered by multiple income vectors, our vibrant, diversified,
well-capitalised and self-reliant businesses continued to be a trusted custodian of customers' assets.
Our fee-based businesses as well as insurance businesses had their best years ever, while we consolidated and strengthened our credit
business and had good recoveries in ARC, despite the challenging environment. During FY21, the Alternatives, Asset Reconstruction and
Wealth Management businesses have maintained their industry leadership, while our Mutual Fund and Retail Credit businesses are growing
franchisees. Our Life Insurance and digitally powered General Insurance businesses continue to grow and gain market share despite a
subdued performance by the industry. We continued the transition to a capital light retail credit model with a focus on Housing and SME
businesses. We have scaled down our wholesale lending book significantly over the last two years and plan to bring it down further.
Structured under ten key entities, our businesses are adequately capitalised with operationally independent and robust platforms and are
poised for scaling up. As the Indian economy enters a phase of strong economic growth, it presents exciting opportunities and headroom
for growth for each of our businesses. With robust equity, comfortable liquidity and agile operating platforms giving us a solid foundation,
we look forward to FY22 and with it, economic revival and growth, with confidence.
ASSET ASSET WEALTH

MANAGEMENT RECONSTRUCTION INSURANCE CREDIT MANAGEMENT
India's leading Largest Asset Among the fastest Capital light model 2nd Largest non-
Alternative Assets Reconstruction growing Life and focused on co-lending, bank Wealth
platform and one of Company (ARC) General insurers in on-lending, Manager in India
the fastest growing in the country the industry co-origination and
Strengths AMC's securitisation
Caisse de dépôt Tokio Marine Holdings Caisse de dépôt et Pacific Alliance

et placement du in Life Insurance placement du Québec Group (PAG)
Québec (CDPQ) Arthur J Gallagher & (CDPQ) in ECLF
Strategic Equity Co (AJG) in Insurance
Partners
Broking
Edelweiss Asset Edelweiss Asset Edelweiss Tokio Life ECL Finance Ltd (ECLF) Edelweiss
Management Ltd Reconstrucion Insurance Company Edelweiss Retail Securities Ltd
(EAML) Company Ltd Ltd (ETLI) Finance Ltd (ERFL) (ESL)
Edelweiss (EARC) Edelweiss General Edelweiss Housing
Alternative Asset Insurance Company Finance Ltd (EHFL)
Advisors Ltd. Ltd (EGICL)
Key Entities (EAAA)
Edelweiss Gallagher
Insurance Brokers
Limited (EGIBL)
EAML: `1.61 billion EARC: `22.22 billion ETLI: `5.36 billion ECLF and ERFL: ESL: `15.63 billion
EAAA: `1.52 billion EGICL: `1.19 billion `38.37 billion
Net Worth EGIBL: `1.30 billion EHFL: `7.62 billion
Numbers reported are for FY21 unless stated otherwise Edelweiss Annual Report 2020-21 | 15
Despite a challenging year for businesses globally, our total AuM grew 67% YoY to
~`850 billion. Our Asset Management Company (AMC) continued to outperform the
market seeing a 100% rise in both our Mutual Fund AuM as well as the SIP book, while
the industry equity book size shrank. Our Alternatives platform continues to be a market
Asset leader in private debt and has a robust annuity income. It also saw the largest fund raise
Management in a year – over `80 billion.
Mutual Funds
Our Mutual Fund business has had a very good year, wherein, despite the tepid business environment which encountered
overall industry outflows, our fixed income investment portfolio & equity inflows outperformed significantly. This resilient
growth also saw the business improve it’s ranking to 15th position (from 17th in FY20), making EAMC one of the fastest
growing AMCs in FY21.
Net Worth Gross Revenue Profit After Tax

`1.61 billion `1.20 billion `50 million
Expanding Customer Assets Earned Investor Trust Business Leadership

• Mutual Fund business manages assets • Bharat Bond ETF in association with • AMC’s market share increased to
worth ~`550 billion under 38 schemes Government of India collected more than 1.60% in FY21 from 1.03% in FY20
across Equity, Debt and Liquid categories `110 billion in AuM
• Fastest growing AMC in FY21 with
• Crossed `100 billion of equity assets • Equity SIP book has doubled to `1.2 billion ~99% growth in AuM over FY20,
with more than 15,000 SIPs being logged in moving up Edelweiss Mutual Fund's
• Retail folios increased by 19x over the
on a monthly basis industry ranking to 15th place
last 5 years
• Edelweiss Mutual Funds Nifty PSU Bond • Building on leadership in debt
• Net equity inflows of `36 billion in FY21
Plus SDL Index Fund-2026 – India’s First passives category
compared to industry outflows of `550
passively managed low cost debt index fund
billion in the same year
collected more than `10 billion in AUM
• Investor Base increased by 53% to
~420,000 in FY21 from ~275,000 in FY20
Launched Edelweiss MSCI India Domestic & World Healthcare Fund, India’s first thematic health care fund
Strategic Global in partnership with MSCI, the world’s largest index provider
Partnerships

Alternatives
The year saw a reinforcement of our dominance in the Alternatives business with robust annuity income.
FY21 was also the largest fund raise year for Alternatives, with `80 billion raised in a year.

`1.52 billion `1.75 billion `140 million
Demonstrating trust of our investors Strong Global Partnerships Leveraging Opportunities

• AuM ~`300 billion, 9x growth since FY16 • EAAA signed an agreement with Ontario • Steady increase in deployment across
Teachers’ Pension Plan Board (OTPP) funds
• Raised ~`66 billion in ESOF III – largest
under which the Canadian Pension Fund • Deployed `28 billion in Q4FY21
fund raise in India in 2020
will invest USD 350 mn in the performing with total deployment of `41 billion
• Closed Infrastructure Yield fund at and distressed private credit investment in FY21
~`33 billion opportunities in the Indian market
• Actively looking at deployment
• ESOF III saw significant commitments from opportunities – current dry powder
State Board Administration of Florida, at ~ `105 billion
Swedish Pension Fund – AP4 and a large
European insurance company • Focus on ESG while investing
A strong revival engine, our Asset Reconstruction business plays a key role in the redeployment of
productive assets back into the economy as well as protecting jobs. In an ever-evolving market,
Edelweiss Asset Reconstruction Company (EARC) continues to maintain its market leadership
position with a market share of ~41%, supported by strong recoveries, despite suspension of IBC.
In the post COVID environment, EARC will drive economic rehabilitation and revival, while focusing
on building retail ARC capabilities as well.
Asset
Reconstruction
Net Revenue Profit After Tax Net Worth Assets under Management
`3.42 billion* `1.86 billion `22.22 billion `408 billion
Robust Recoveries Strong Growth Potential Robust Fee Income & Profitability
FY18-FY21
• Focus on differentiating services like • Strong pipeline with focus on acquiring • Management fee 1.8% of the AuM
facilitating turnaround of portfolio assets large, viable, operating and EBITDA
• 4.7% Return on Assets (RoA)
through in-house team of specialists earning assets
• 17.0% Return on Equity (RoE)
• EARC has been able to recover more than • Increased focus on building scale in retail
`54 billion in FY21 from 179 borrowers
• Deployment of `2.43 billion towards retail
and total of ~`274 billion over last five
assets, with analytics and technology
years
being the growth drivers and `2.31 billion
• Recoveries will aid in funding fresh towards wholesale assets
acquisitions without any additional
capital requirement
* Net of finance cost and impairments Edelweiss Annual Report 2020-21 | 17

Our Insurance businesses are built on a digitally driven new age model and continue to be
amongst the fastest growing in the industry . Designing innovative products that are tailor-
made to address evolving customer needs, they leveraged their digital prowess to simplify
processes for their customers. Owing to this, both Life Insurance and General Insurance have
outperformed their peer set and grown during the recent lockdown, when the industry was
seeing single digit growth. Our insurance broking platform in partnership with US-based
Insurance Arthur J. Gallagher & Co also saw good growth this year.
Edelweiss Tokio Life Insurance (ETLI) is one of the fastest growing life insurance companies
in India. The business managed the transition to remote working speedily on the back of its
robust processes that facilitated easy and secure connectivity across branches and employee
tranches, dispelling any significant upgrades or changes. As the COVID-19 crisis raged on, ETLI
LIFE INSURANCE focused on strengthening its bouquet of protection products by adding several relevant and
innovative offerings, keeping customer needs at the forefront at all times.
Customers Agents Branches FY21 Number of Policies

~330,000* ~58,000 116 ~80,200
* Unique active customers as on date
Long-term Value creation High Quality Franchise Innovative Products

• Among the fastest growing Life Insurance • 13 month overall persistency at 76%
th
• Launched COVID Shield+, India’s first
company, the only Life Insurer to grow individual COVID life insurance policy
• Embedded Value (EV) as on 1
every month in FY21 helping policyholders to secure their
March 31, 2021 at `12.56 billion
savings against the ongoing pandemic.
• 19% growth in the Gross Premium
• Solvency Ratio at 215%
income in FY21 to `12.48 billion • Launched Active Income Plan - A
(`10.48 billion in FY20) • Individual Claims Settlement Ratio is at comprehensive insurance plan that
97% in FY21 compared to 83% in FY20 offers guaranteed income, flexibility and
• 25% growth in the Collected Individual
cash bonus, allowing customers to meet
Annualised Premium Equivalent (APE)
both short-term and long-term financial
to `4.04 billion in FY21
goals, especially under current economic
• APE CAGR of 24% since FY16 as compared conditions and volatility.
to 11% recorded by the industry
1
Embedded Value (EV) is calculated on market consistent basis.

Edelweiss General Insurance (EGIL) – our youngest business, enabled by a digital business
model, registered a robust ~49% YoY increase in premium in FY21, making it the second
fastest growing player in the Industry. Committed to make insurance disarmingly effortless,
we persistently built multi-channel distribution partnerships. Our motor portfolio saw a
GENERAL INSURANCE good growth of 46% in sharp contrast to the industry which saw de-growth of 2%.
Gross Written Premium Solvency Ratio Number of Policies

`2.26 billion 209% ~188,200
Robust growth while industry faced Technological Edge Partnerships

headwinds during COVID-19
• Launched SWITCH-an innovative on-demand Continuously expanding digital partnership
• High Share of Premium Contribution driver-based, multi vehicle, app-based Motor base through addition of new-age tech
• Private Car Insurance growth at 46% insurance OD floater policy based on players & OEMs like Okinawa
(Industry average at -2%) pay-as-you-use model
• Retail Health Insurance growth at • Open API gateway, data lake, enhanced
184% (Industry average at 29%) partner portals and new product customisation
• Share of profitable segment higher than modules enabled us to connect and integrate
industry with our partners seamlessly
• Motor Own Damage Insurance share at • First within the industry to rollout open API
gateway for the ecosystem of business partners Accolades
49% (Industry average 29%) includes
OD+Comprehensive package & developers enabling Plug & Play integration Continued to garner recognition for product
• Adopted video-based remote survey app innovation and technology adoption. Won 9
(BOLT) for motors claims awards in prominent forums across categories
Our insurance broking arm Edelweiss Gallagher Insurance Brokers Ltd (EGIBL) is one of the leading
composite insurance brokers in India providing General Insurance solutions to institutions as well as
individuals and reinsurance solutions to insurance companies.In FY21 the business placed premiums
of `8 billion. In July'21, we announced the divestment of our stake in the business. Gallagher, who
previously held 30% in the business, will now be acquiring all the remaining shares, taking its stake to
INSURANCE BROKING 100%. The transaction is subject to regulatory approvals.

Our Credit business is built on a mix of diversified and scalable businesses with focus on capital light
lending through bank collaborations. As planned, we have continued to sell down towards a much
smaller mid-corporate credit book and will scale up retail credit going forward. During the year, we
invested into building capabilities, supporting our clients through digitalisation and business process
transformation, increasing efficiencies and improving customer centricity.
CREDIT
NBFC
(ECLF & ERFL)
Net Worth AUM* Capital Adequacy

`38.37 billion `105.26 billion 27.5%
• Reduced book size in ECLF • Successful workouts of `15 • Conservative stance • Robust collections of ~`20.50
to ~`114 billion in FY21 billion in FY21, expected to on disbursements, MSME billion in FY21, Collection
(`130 billion in FY20), improve further as COVID disbursement at `3.5 efficiency of 94% in Mar’21
expected to reduce by impact subsides billion in FY21
~50% by FY23
*AuM includes loan book and securitised assets.
Housing Finance
(EHFL)
Net Worth AUM Capital Adequacy
`7.63 billion `43.85 billion 26.5%
• Collections of ~`15 billion • Adopted conservative stance • Focus on asset-light • Leveraging technology and
in FY21, Maintained on disbursements, Disbursed growth, Securitised book analytics for speed, agility
collection efficiency of ~`4.50 billion in FY21 of ~`9 billion in FY21 and resiliency
99% in Mar’21
• Long-term alliance with Caisse de dépôt et placement du Québec (CDPQ) in ECLF to participate
in India’s credit opportunities
• Co-origination tie-up with State Bank of India, Central Bank of India, Bank of Baroda and Punjab
Strategic Partnerships National Bank for priority sector lending

Our Wealth Management business has consistently outpaced market growth and made
rapid strides in industry rankings over the last five years. This has led us to become the
second largest non-bank Wealth Management company in India. Our customer AuA has
grown with a ~39% compounded annual growth rate from ~`295 billion in FY16 to ~`1.55
trillion in FY21 which is a strong testament to the trust our customers repose in us, despite
market volatility.
The Wealth Management business with a 36% YoY growth in AuA is building scale and
Wealth leveraging digitisation. During the year we sealed our partnership with PAG (Pacific
Management Alliance Group), the leading Asia-focused investment group, through a stake sale in our
Wealth Management arm. The business was built with an investment of `4 billion over 10
years and was valued at ~`44 billion during the stake sale – a testament to our ability to
build businesses that create value.

`15.63 billion `12.88 billion `2.45 billion
Expanding Customer Assets Strategic Partnerships Business Leadership

Value Unlocking in • Ranked 2nd largest non-bank wealth
Assets under Advice (AuA) Edelweiss Wealth Management (EWM) manager in India by Asian Private Banker
~`1.55 trillion in FY21
(~`295 billion in FY16) • Edelweiss Mobile Trader (EMT) continues
• Completed the stake sale to PAG in Mar’21
~5.3x growth at a valuation of ~`44 billion
to be the highest rated app in its segment
with over 1.7 million downloads
• Strong equity base for growth in EWM with
• Ranked #1 in India for QIPs in the range of
Primary Equity infusion of ~`4 billion by PAG
Number of Customers `1 billion to `10 billion in the last 5 years
• EFSL will hold 38.5% stake in EWM with an with a market share of ~16% in terms of
option to increase it to ~44% number of issues handled*
• Demerger and subsequent listing by Sept’22- • Debt Capital Markets ranked #1 in FY21
Dec’22 subject to requisite approvals in public issuance of bonds for the 7th
~702,600 in FY21 year running, lead arrangers to ~70% of
(~375,000 FY16)
the amount mobilised via this route*
~2x growth
Customer Segments
Robust Profitability
Innovative Products
• Maintained revenue yields within the
• Launched long-short AIF scheme; Edelweiss
UHNI: ~2,600 range of 70-80 bps
Dynamic Growth Equity Fund and 3rd series
Affluent clients: ~700,000 of Edelweiss Crossover Opportunities Fund • ~18 % Return on Equity for FY21
• Capital Markets & Advisory: 63 deals in FY21
across ECM, DCM, M&A, special situations
and debt syndication
Source: *Prime Database Numbers reported are for FY21 unless stated otherwise.

Our Governance
Rooted with
INTEGRITY,
STEADFAST
in Actions
Pristine and unsullied by the muddy waters in which it grows, the strong, upright stem keeps the Lotus flower anchored
but clear above the muddy waters as it continues to blossom representing trust, purity of intent, wisdom and enlightenment.
22 | Our Governance
OUR GOVERNANCE
At Edelweiss, the lotus is symbolic of our governance credo which we uphold over everything else. To us, it means discipline
internally, to ensure discipline externally. Based on integrity, and a commitment to always act transparently and fairly, it reminds
us that we are accountable to an ecosystem of stakeholders. It awakens in us a desire to live by self-defined rules of good
behaviour and urges us to go beyond statutory mandates.
Effectively harnessing technology, our governance and risk management framework tempers acceleration of opportunities with
necessary brakes, ensuring responsible growth. Adopting voluntary practices, with the highest level of propriety we have earned
the trust and respect of the fraternity. It is the reason strategic international investors have reposed their trust in us even during
periods of volatility and uncertainty.
Tenets of our Corporate Governance Philosophy
Trust Legitimacy Accountability Competence Respect

No compromise Transparency, Responsible Simplification for Upholding the laws
on ethics and authenticity decision-making enhanced of the land in letter
integrity and fairness and responsiveness effectiveness and spirit
Key Highlights
• 12-member Board of Directors comprising 7 Independent • Senior Management and Directors governed by Conflict
Directors, 2 women Directors – collectively represent over of Interest policy, in addition to the Employees’ Code of
400 years of rich and diverse experience Conduct, outlining an ethical roadmap for conduct of
business
• The Environmental, Social and Governance (ESG) Council,
spearheaded by women leaders oversees our ESG strategy • Mandatory e-workshops and e-learning modules on Group
with the aim to embed sustainability across the Group Policies for employees to ensure awareness, assimilation
and adherence
• Board-level and Group-wide holistic view of risk that helps
us assess, avoid, mitigate and manage risk events across • Active engagement with Regulators and Government,
11 risk vectors, in addition to conducting an independent representing the voice of the industry, in economic and
assurance on the effectiveness of our risk frameworks policy discussions
• All subsidiaries have adopted higher levels of governance • Enhanced Cloud and data security controls, heightened
norms and listing standards and have independent directors process standardisation have strengthened our IT
who ensure keen external oversight and transparency governance practices ensuring the right balance of
efficiency, risk and compliance
• Automation of regulatory compliance through technology-
based applications
• Analytics-driven approach enables early detection and
derailment of potential risks
To know more about our Corporate Governance initiatives, please refer to our Sustainability Report on page no.42

Our Customer
Experience
Creating
DELIGHT,
Building
ENDURING
bonds
The Red-Crowned Crane also called as the bird of happiness is symbolic of immortality and fidelity.
They are often known to dance in harmony, build relationships for life and represent hope in difficult times.
24| Our Customer Experience

OUR CUSTOMER EXPERIENCE
Just like the Red-Crowned Crane, at Edelweiss we believe in forging lasting relationships with our ~2.1 million customers, many
of which have joined the Edelweiss family in the last 2 years alone. During the pandemic, we strived further to strengthen our
relationship and build an everlasting bond with them. With a customer first culture, it is our constant endeavour to engage with
them through every stage of their life cycle, allowing us to develop a deep understanding of their unique requirements, offer
innovative solutions to meet them and provide them a superlative Customer Experience (CX). Through good times and bad,
our objectives remain the same – to stand true to the trust they repose in us, to anticipate their needs, to harness the power of
technology backed by customer insights and offer them seamless, sterling and delightful experiences.
Our ASSURED Model aligns the entire organisation towards providing a WOW Customer Experience.
A SS U R E D
We will be We will be on We will be We will We will be We will be

Accessible the Same Side Upfront and Remove Easy to Deal Dependable
to our and listen to transparent Limitations with and and take
customers our customers in our for our uncomplicate ownership
with empathy dealings customers
• Simplified the onboarding platform for Alternative • Accelerated the decision making and disbursement
Investment Funds through SWIFT, going completely process for customers through our Digital Lending
paperless and integrating it with Aadhaar based e-sign, Platform (DLP) via smart eligibility checks, paperless
e-stamp paper, smart document checklist, etc functioning and instant validation of the credit
worthiness of the applicant, thereby providing a
• Improved productivity and offered valuable insights frictionless user experience
to clients through Apollo - our integrated research
platform, which was refreshed to make it more user- • End-to-end automation of the payment process for
friendly along with simpler reports ARC clients through multiple digital payment options
including payment using virtual account number
• Enabled faster transaction processing for our Mutual
Fund clients through Virat - our renewed transaction • Facilitated timely resolution of client requests/queries/
processing with re-engineered backend processes for complaints through a service request system with an
Non Commercial Transaction (NCT) resulting into faster in-built escalation matrix
updates of bank details, address changes, e-mandates,
etc • Established a common framework to measure real-time
customer feedback for the Group, capturing
• Launched SWITCH - an innovative mobile app which is a transactional Net Promoter Score across four identified
driver based insurance where customers pay only for stages in the customer journey
the days they drive their vehicle and save on premium
when they don't use it • Our award-winning mobile trading app - Edelweiss
Mobile Trader is now available in four languages and
• Introduced several initiatives to ease customer has over one million downloads
interactions in light of the pandemic
To know more, please refer to Our Response to Covid-19 page no.06

Our People
Swiftly
ADAPTING,
Striding
PURPOSEFULLY
Symbolic of change, adaptability and self-realisation, the wings of the Dragonfly blend flexibility and strength flawlessly together,
using 20 times more power in its strokes, than other insects, to accomplish its objectives with utmost simplicity and effectiveness.
26 | Our People
02
OUR PEOPLE
Our biggest asset has been our people and just like the Dragonfly, the strength of character displayed by them during this
challenging year bears testament to the Edelweiss spirit. Our ~8,500 employees, pan India, reinvented themselves swiftly as
they adapted to a new normal and work from home with ownership, agility, and vigilance. Their persistence at work ensured
business continuity, seamless services and solutions to our customers. With a collaborative approach, courage and strength,
they fought the pandemic, standing by each other and the community in its hour of need.
Key Highlights:
• Employee well-being and safety remain our topmost • Rewards & Recognition
priority • Our value-based culture is committed to acknowledge and
• Reimagined and repurposed offices to support work appreciate efforts of employees through extensive
from home and hybrid working, enabling employees to recognition programmes. This year 135 employees who
connect, collaborate and manage work interactions in a completed 10/15/20 years at Edelweiss were felicitated for
safe environment their long-term service to the organisation
• Onsite-Vaccination Drives and reimbursements for all • Leadership development

employees and their families
Leadership development was strengthened through
• Ensuring mental and emotional well-being through inclusion and sharing of plans, decisions, information and
counselling services, leadership townhalls and support accomplishments to team members, besides using virtual
groups learning platforms extensively
• Our leadership programme identifies and grooms a pool of
• 24x7 COVID helpline, on-ground response team to provide high potential leaders. About 5% of our employees are
medical assistance for employees battling the infection, a part of this pipeline, which runs across levels to align and
extending medical insurance for home isolation, special collaborate to build an agile and ever ready Edelweiss
leaves etc
• Financial assistance for loss of life – Life insurance • Inclusion & Diversity
payments up to 3x of CTC and ex-gratia, medical insurance We believe in an inclusive workplace, with zero tolerance to
and education assistance, including offering employment any discrimination
to the next of kin • All In - our unique inclusion initiative reinforces tenets
that enable employees with different backgrounds, gender,
• Employee Engagement ways to thinking, style of operating to work effectively
Ensuring employees remained motivated, engaged and together and holistically play to their strengths
productive through a virtual model
• Sustained connection, trust and engagement through • We have a healthy gender ratio wherein 23% of our
frequent check-ins and townhalls by leaders and reach- employee base comprises of women
outs by employee support groups
• Adopted a zero-tolerance policy against sexual
• Employees encouraged to volunteer their time and
harassment. We introduced a 2-day certification
expertise in delivering high quality solutions to issues
programme for all our Internal Committees (ICs) and
faced by NGOs supported by EdelGive Foundation
launched WorkSafe – an interactive e-learning module
for employees that educates them about their rights
To read more about workplace diversity, learning and development initiatives, employee safety & welfare,
employee engagement, please refer to our sustainability section on page no. 42
Edelweiss Annual Report 2020-21

2019-20 | 27
03
Our Technology
Enabling
FLEXIBILITY,
Advancing
TRANSFORMATION
Symbolic of strength, flexibility and growth, the Bamboo holds within it a timeless lesson – stay firmly rooted, bend but don’t break.
It is one of the most versatile plants known to withstand great strain and continues to grow without breaking.
28 | Our Technology
TECHNOLOGY POWERED BUSINESS STABILITY
Technology was a standout for Edelweiss during a year where companies needed to swiftly reimagine businesses. Not only
did having a strong tech backbone ensure business continuity and provide a seamless experience to our customers, it also
helped accelerate adoption of collaborative tools. Our platform-thinking approach and migration to cloud native platforms
empowered us with the ability to tackle a never-seen-before work scenario. While we took bold steps towards reinforcing
our digital-first orientation initiatives such as 'Work from Anywhere', 'Branch in a Box' and 'Zero Trust Network Security
Model' demonstrated the efficiency, agility and resiliency of our entire IT infrastructure.
Technology resiliency
The key pillars of our technology resiliency have been:
Cloud adoption: Enabled faster and secure Enterprise API gateway: Helped leverage the
access to applications 24x7 irrespective of partner ecosystem, reduced turnaround time
device or location paving the way to work from for new product launches
anywhere model
Unified collaboration suite: Accelerated rollout Intelligent automation: Enabled development

of our collaboration suite, ensured quick of new experiences, delivery of process changes
adoption, saw increased employee productivity swiftly
Artificial Intelligence: Leveraged advanced Machine Learning algorithms to build efficiencies in business risk and
surveillance processes
Some other key initiatives undertaken across our businesses over the last year include:
• Pragati a remotely accessible digital platform for our • Heightened vigilance and risk management
Life Insurance distributors ensured no disruption to through AnMOL our customisable inhouse
their business acquisition and client engagement application for frequent and comprehensive
Anti Money Laundering (AML) checks
• Adopted cutting-edge technologies for our High
Frequency Trading (HFT) platform – Tradeweiss, • Reduced integration time for internal and partner
increasing speed 2x, which enabled handling larger systems by 1/5th through the Fiber – API
volumes of transactions management platform also helping save costs by 30%
• Strengthened scalability of our Retail trading • Enhanced cloud security and IT governance by
platform significantly, making it the only trading adopting the Zero Trust Network Security model
platform in the industry to be able to scale up that ensures strict identity verification irrespective of
transaction flow within 48-72 hours device locations
• An integrated Cloud-based Retail collection • Strengthened data security through end to end
system in our Distressed Asset Resolution business state-of-the art security solutions ensuring all
ensured automation, efficient monitoring and customer data is identified and encrypted from
tracking resulting in faster turnaround time storage to transmission
with clients
• EWM is India’s first wealth manager to fully migrate
• Facilitated faster settlement of claims via BOLT a to cloud-based services and has also launched
remote survey app, which helped carry out motor Infinity - India’s first subscription-based advisory
claims related inspections remotely platform. Further leveraged technology to simplify
customer onboarding with Edelweiss Lite program
• Our Unified Employee Master has enabled seamless for self-reliant tech savvy clients
flow of data across the internal systems by avoiding
numerous integrations with the different HR systems

Chairman’s
Letter
As we wrap-up FY21 and enter FY22, it almost feels like déjà vu. As it was 12 months ago, we are emerging from the throes of
COVID-19, albeit a much more severe second wave. The past few months have been a tough time for all of us, just as we were
slowly but steadily emerging from the ravages of the first wave. This time around, the impact has felt much more personal.
Each one of us has experienced sickness or loss personally or through colleagues, friends, and extended family. It has been a
tough and challenging time for India and now, more than ever, it is important for all of us to come together.
In the backdrop of these difficult times, it has been heartening to see the superb collective efforts that all of us have made
to help the vulnerable. I am sure each one of you has a personal story to share of how you stepped in to fill the gaps
in the infrastructure and offered aid to someone in need - whether it was hospital beds, or medical supplies or oxygen
concentrators or donations. We have also tried to rally around our employees, and our society, in these difficult times and
provide the best possible help.
Lending a helping hand

Safeguarding our people
Last year, the lockdown was the first-of-its-kind we had ever witnessed. We enabled a swift and seamless transition to
work from home, without any significant loss in productivity. It was important to ensure the safety and well-being of our
employees but also at the same time to ensure that we were connected to our clients in these challenging times, more than
ever before. Therefore, even though we went more digital, we ensured that the lack of physical connect was more than
adequately supported by enhanced virtual connects at higher frequencies than ever before.
This year, as the second wave struck, our work from home and digital connects were all well established. However, as earlier
mentioned, the severity of the pandemic’s impact meant that we were focused on a three-tier people strategy -
Pillars of
people
strategy

including 24x7 emergency services,
Enabled complete WFH with support
dedicated COVID-19 helplines,
and guidance on managing teams, being
counselling services, support for
more productive, digital detox, enhancing
medical services, insurance coverage,
collaboration
vaccination enablement and
reimbursement, amongst others.
Employee
outreach/ support groups
as well as leader connects
through regular virtual
townhalls
30 | Letter From The Chairman

As we interacted with our teams through the crisis, we realized that our employees were
facing much more than professional pressures as they navigated any given workday.
While the focus on safety and well-being from a Covid perspective was paramount, one
aspect which was largely getting ignored was the mental health aspect. Therefore, very
We drove through, across the
early on in the pandemic timeline, we focused on providing an active support group for
our people, through regular interactions and check-ins. We drove through, across the
organization, a message of empathy
organization, a message of empathy and support – none of us could really be aware
of the complete circumstances of an individual in these challenging times and hence,
and support
it was necessary, before anything else, to come from a point of view of empathy and
support when interacting with one another.
Our Social Responsibility

EdelGive Foundation significantly stepped up its efforts to support vulnerable communities:
Funded and raised over Partnered with 46 NGOs in Contribution directed

`1 billion for COVID-related providing aid and relief to people towards helping
work in FY21 residing in difficult geographies affected families
and vulnerable communities NGO with cash transfers,
food grains, oxygen and
health supplies
Launched The GROW Fund (Grassroots

Support to grassroot organisations Resilience Ownership and Wellness) a unique
engaged in immediate relief activities such as collective of global and Indian philanthropists,
providing emergency ration kits, oxygen and health working towards jointly supporting and sustaining
supplies, and awareness generation activities 100 grassroot organisations across India, over a
period of 24 months.
FY21 Rewind
FY21 was a challenging year – yet it was a rewarding one as well! All our businesses, barring Credit-linked businesses, had
their best year since inception, despite the impact of the pandemic and the subsequent lockdown. Some of these were
driven by natural inflection points in the business lifecycle, some through our agile transition to digital modes of doing
business while some others were driven by overall change in the market environment.
• Alternatives and AMC

Alternatives and AMC businesses together constitute our asset management offerings. Both these businesses had break-
out years, best-ever growth years in their history!
The Alternatives business raised more than `80 billion across two hallmark funds in structured credit and infrastructure.
The business also deployed more than `40 billion across multiple funds through the year as the swift post-pandemic
recovery by businesses provided a new growth impetus to the economy.

Our AMC, on the other hand, nearly doubled its AUM
in FY21 and is now the 15th largest AMC in the country. In fact,

the AUM has grown 35x in the last five years. We also crossed
`100 billion of equity assets in the AMC, with net equity
Most of our businesses had their best year since
inflows of ~`36 billion in FY21 compared to industry inception, despite the impact of the pandemic and
outflows of `550 billion. We also continued to stand out in
product innovation with the launch of India’s first passive the subsequent lockdown
debt index fund investing in PSU bonds and State
Development Loans (SDLs).
Mutual Fund Equity Gross Sales (` billion)

Alternatives AuM (` billion)
300 27
th
row
X G 15
~9
9
7
34 6
FY16 FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
• Life and General Insurance

Life and General Insurance businesses in Edelweiss have seen strong growth every year since inception – LI since 2012
and GI more recently since 2018. However, last year was an even more phenomenal year for both these businesses as the
transition to digital mode was one of the fastest in the insurance sector.
Edelweiss Tokio Life Insurance crossed `4 billion Annualized Premium Equivalent (APE) milestone for the first-time with
a 25% YoY growth. This was against only a 3% growth in the industry.
Similarly, Edelweiss General Insurance had an overall premium growth of 49% YoY. This was against the industry growth
of 5% YoY. Growth in our chosen segments of motor and retail health was even more impressive compared to the industry.
Life Insurance General Insurance

Individual APE - Outpaced Industry growth YoY in FY21 Strong YoY GDPI performance in Retail Lines
compared to the Industry in FY21
25% 184%
3% 46% 25%
Edelweiss Tokio Life Industry -2%

Insurance
Motor Retail Health
Edelweiss General Insurance Industry

• Edelweiss ARC
FY21 continued to be a robust year for our ARC business despite the challenges of the pandemic. We made gross
recoveries of `54 billion in FY21 spread across almost 180 borrowers. The business remains well-capitalised with a
Capital Adequacy ratio of more than 37% and a Net DE ratio of only 1.4x. This has been achieved through a 22% YoY
reduction in net debt levels, driven by strong recoveries. We intend to continue to work towards reducing leverage levels
in our ARC business as we scale up the Retail ARC franchise.
• Wealth Management
It was a strong year for the wealth management industry as strong growth in capital markets provided an impetus to all
parts of the wealth management business. Edelweiss Wealth Management also, like our businesses in asset management
and insurance, had its best year ever, clocking a profit of ~`2.5 billion and a 36% growth in Assets Under Advice (AuA).
As of Mar’21 the AuA stood at `1.5 trillion, more than a 5x growth in the last five years. Clients have also scaled up
considerably in the same period.
Wealth Management AuA (` billion) No of Clients (#)
1,550 7,02,600
h
wt
th G ro
X
ow ~2
Gr
X
.3
~5 3,75,000
295
FY16 FY21 FY16 FY21
During FY21, we entered into a partnership with PAG in our wealth management business. This transaction was done
at a valuation of `44 billion and we now hold 38.5% stake in EWM with an option to increase this to ~44%. The
transaction also enabled fresh capital infusion of `4 billion in the business to enable future growth aspirations. Our
overall plan here is to unlock value for our shareholders through the eventual demerger and listing of EWM in the next
12-15 months. This is in line with our overall strategy whereby we focus on long-term value creation and subsequently
unlocking value to enable direct benefits to our shareholders.
Similar to the EWM business, we focus on long-term value creation and subsequently
unlocking the value to enable direct benefits to our shareholders.

• Mortgages & MSME
The pandemic and subsequent lockdowns had a significant impact on the Credit markets, especially in the short-term.
Collections had been impacted during the lock-down, but we have seen significant improvement in subsequent months.
There has been some impact on asset quality, and we have pro-actively worked towards resolution on that.
In the Mortgages business, we have been conservative on disbursements, especially owing to the second wave and
possibility of a third one. We will continue to closely track the portfolio performance to ensure minimal slippages.
Collection efficiency had reached 99% by Mar’21 and despite the second wave, remains at more than 90% in June’21.
We have also worked towards building our new sell-down model in mortgages with securitization of ~`9.5 billion of
mortgages book in FY21. As we scale this book in due course, we also expect to do even higher sell-downs to build our
asset-light mortgages business model.
The MSME business followed a similar line as the Mortgages business with caution around fresh disbursements and focus
on improving collection efficiency of existing portfolio. Collection efficiency was 94% in Mar’21 and continued to be above
90% in June’21 despite the pandemic.
• Wholesale Credit
We continue to focus on reducing our Wholesale Credit loan assets and have seen significant progress in the last couple
of years with a 35% reduction as seen in the chart below. This trend will continue going forward and we expect to halve the
book in the next two years. The asset quality of the book is now under control as accelerated impairments taken earlier mean
that we are well-provided and adequately collateralized.
ECLF Wholesale Loan Assets (` billion)

177
130
114
We expect to halve the wholesale book

in the next two years
FY19 FY20 FY21
The year FY21 was unique in many respects. Even as we

were witnessing an unprecedented era of a pandemic and

lockdowns, there was another seismic change playing out
in parallel. The acceleration of digitization that came about The acceleration of digitization that came about

due to the pandemic has, in some views, achieved the expected
outcome for the next several years of ‘normal’ digitization.
due to the pandemic has, in some views, achieved

In turn, this has enhanced the productivity and efficiency
across sectors and industries. Coupled with the significant de-
the expected outcome for the next several years
leveraging being seen in multiple firms, and the added benefit of ‘normal’ digitization.
of low-cost financing, we are starting to see the first green
shoots of outperformance. In our view, these are significantly
longer-term trends which will sustain not just for
years but potentially decades.

25 Years of Edelweiss – The Good and
The Not-So-Good!
Theodore Roosevelt had once said,
The more you know about the past, the better prepared
you are for the future.
However, just knowing is not enough. What is equally important is learning from the past. It is a misnomer that the end
of formal education signals the end of learning. On the contrary, the end of formal learning marks the onset of ‘learning
by doing’, which truly is the most valuable learning of all. At Edelweiss, we believe that the process of learning is life-long
and ever-flowing. Every day has something to teach us – the value and import we give to those everyday learnings truly
determines our ability to progress and succeed.
In the same vein, as we reflect on the 25 years gone by, we celebrate ‘the good’ (and there have been many!) but even more
essentially, we highlight and learn from the ‘the not-so-good’.
The Good!
Our 25-year journey has been interspersed with several grand moments, be it our first acquisition in 2001, hitting double and
subsequently triple digits in profits, our public listing in 2007, subsequent acquisitions of Forefront, JP Morgan MF amongst
others, winning the mandate from Government of India on Bharat Bond, growing our employee base from 1 to ~9,000 and
many, many more. The list truly is endless. The value created in this journey has seen our net-worth increase from `10 million
when we started our journey to `85 billion today!
Book Value Per Share (`)

74
45
31
4
0.7
0.1
FY96 FY01 FY06 FY11 FY16 FY21
While BVPS is a good indicator, it is still not a complete reflection of the total value we have created (a significant part of
which remains bundled within the Group and will be unbundled in due course like we have done in EWM). This value creation
has been on the back of seeding and scaling multiple businesses with a long-term perspective.

The Not-So-Good – Learnings for a lifetime!
The Indian market is cyclical and while each cycle is inherently similar, it is never the same. We have seen several cycles over
our 25-year journey and each one of them us has given us some unique learnings, which continue to evolve and improve our
approach towards business.
That does not mean we will not make mistakes in the future – we feel that it is quite likely, in fact, almost certain that we will
continue to make some mistakes. However, it is our responsibility towards you to ensure that we do not repeat any of the
mistakes from the past and whatever mistakes we do make, we make them as affordable as possible!
Some of our key learnings include:
• Wholesale Credit in NBFC structure
Our wholesale credit business (comprising Structured Credit and Real Estate Credit) was launched in 2007 but truly took
wings after 2013 when the business started scaling significantly. This coincided with a liquidity-positive phase for the
Indian economy as the government and the regulator actively worked towards easing the crunch induced by the QE
tapering. The overall environment was conducive for growth and the wholesale credit business flourished. At its peak,
our wholesale credit book was over INR 200 billion. This represented a significant concentration risk, despite our multiple
business lines, if the business cycle turned.
We started working towards de-risking the business profile by tapering off fresh business build-up in our NBFCs and doing
majority of our incremental wholesale credit business through the fund structure in Alternatives. We realized that a fund
structure provided the kind of long-term, flexible capital that will help tide over interim periods of market dislocation
without any significant impact on the franchise, something that was not true for an NBFC structure. However, the ILFS
default and subsequent events since have exposed us to a challenging period as we still held a significant wholesale credit
book in our NBFC when this happened. While the tough times are largely behind us, they have exemplified the perils of
wholesale concentration in NBFCs.
• Value v/s Valuation

As a private company, one will often compare oneself to listed peers but these comparisons will never be completely
accurate and hence, not something one should give inordinate importance to. However, once we were listed
in 2007, it was natural to see how we shaped up against our peers, not just in size, scale and profitability but also on
valuation. Thankfully, the ‘memento mori’ moment for us did not take too long. As the GFC unfolded, valuations of all
companies plummeted to record low levels. Financial Services, especially, was severely impacted. In a matter of few
months, we had seen both ends of the spectrum – the dizzying heights of unprecedented valuations as well as the lowest
of lows after the market crash.
Very early on in our post-IPO evolutionary journey, we saw the fickle nature of the market. While it was tough to see, it
also steeled our resolve to not give undue importance to short-term market movements. Valuations, at any point of time,
are equivalent to the price ascribed by the market. Composed of individuals with varying psychologies and behaviours,
it is natural for the markets to be irrational – both on the upside and downside. What we focused instead was on creating
long-term value – value which eventually does get reflected in the valuation over the long-term.
• Quality precedes Growth

Growth has been a key component of our value creation journey. And across most of our businesses, this has worked well.
However, there have often been times when a lot of work has gone behind the scenes, not in creating this growth,
but building the support system for this growth. By its very nature, the Indian economy is attuned towards a healthy
growth for businesses. However, in some instances in our journey, the growth trajectory has exceeded what we have
been capable of handling. The backbone (what we call as Quality!) has often not grown at the same speed as the business,
leading to a lot of incremental effort and build-up of complexity within our system. This is something we want to work on
as we look at the next 25 years of our journey and we allude to in detail in the latter part of this letter.

• Pitfalls of Concentration
As mentioned earlier, India is a cyclical market and within market cycles, there are cycles across industries and even
within an industry itself. Hence, different parts of the financial services industry could face conflicting fortunes at different
periods of time. This is best exemplified by the current state of the industry. While equity markets-linked businesses like
broking are flourishing, lending businesses have been cautious on the growth front, preferring to see some stability
before going up the credit curve.
The need to diversify income sources was one of our key learnings early on in our journey when the business was
impacted severely during the dotcom bubble. Our profits dropped more than 75% from FY2000 to FY2001. While we
started our journey of shifting from monoline business in 2002, the real impetus to this came in the period from 2007
to 2012 when we incubated and launched several new businesses. Today, our suite of businesses truly identifies us as a
diversified financial services organization
Building Businesses – The Edelweiss Approach

At Edelweiss, we start all our businesses with a certain hypothesis on the growth opportunity and our ability to provide
resources to the new business as also to eventually build a moat for long-term success. We undertake a careful evaluation of
multiple factors before we enter any new business. While more simplistic than the actual exercise, our approach to evaluate
investment in any new business can be exemplified by SOARS. This is an evaluation we undertake not just when we launch
a new business but at subsequent intervals of inflection, to see whether the hypothesis still holds true and if not, what are
the options available to us.
S Scale potential– Will enable significant value creation in long-term

O Opportunity for Growth – Opportunity favours growth aspirations
A Availability of Resources – Availability of resources (including capital) for growth
R Right Fit – Business is the right fit for our overall portfolio
S Secret Sauce – Identifying the ‘secret sauce’ we need to win
While a qualitative and quantitative analysis is one part of the story, what truly gives us the capability to create great,
sustainable businesses is our long-term outlook. Because we have a very frugal approach to business building, typically, our
seed investments in such businesses are on the lower side. This helps us play the long-game since the overall investments
tend not to balloon significantly as to impact the overall Group. At the same time, we are also slightly stubborn people – we
don’t like to see experiments failing and usually find ways to make them work, more often than not! That is one of the key
reasons why Edelweiss stands today as one of the most diversified financial services group in the country.
Typically, our seed investments in such businesses are on the lower side.
This helps us play the long-game!

From an Investment Banking Firm to a Diversified Financial Services Group
Mortgages
MSME Credit
Life
Insurance
General
EARC Insurance
AMC EARC
Alterna�ves AMC
Wholesale Wholesale Alterna�ves

Credit Credit
Global Wealth Wealth Wholesale
Markets Management Management Credit
Ins�tu�onal Global Markets Global Markets Global Markets
Equi�es (IE)
Investment IE & IB IE & IB Wealth
Banking (IB) IB Management
1996 - 2000 2000 - 2005 2005 - 2007 2007 - 2009 2009 - 2018
Taking Flight – Project Udaan

About 10 months ago in October of last year, as we were emerging from the throes of the first wave of the pandemic, we
felt that there was a need to go back to the drawing board and re-evaluate if any of our business models warranted
a change – be it a mole-hill sized or a mountain-sized one. There were two main reasons for doing this – one, the post-
pandemic world is a very different one to what existed in the past, both in terms of customer needs as also how you
service them. Technology, if not already, was playing an even more critical role and it was important to evaluate any
shifts to the traditional business paradigms which could potentially disrupt any business. Secondly, we strongly felt that
we were at the cusp of a long-term upcycle in India’s growth journey. As it is, India’s natural compounding strength
makes it a great growth opportunity (more on that later!) but with the culmination of a long-term, medium and short-
term downcycle, the stage was set for an exponential growth trajectory. It was important that we were ready for this
growth momentum. Thus was born Project Udaan!
Project Udaan was basically a four-phase process, run over a period of six months starting October 2020.
Re-evaluated the market opportunity and defined what our aspirations were for the next
PHASE 1 five years
Worked towards identifying the set of capabilities and key differentiators we needed to
PHASE 2 build to achieve those aspirations
Ensuring that the enterprise backbone was ready for the kind of growth we were
PHASE 3 envisaging. This is something we are now focusing on in earnest and investing heavily
across our enterprise functions, especially on tech side.
PHASE 4 Financial plan and the required resourcing for it

As can be seen below, all our businesses are well-capitalised and well-resourced for growth over the next five years. Since
many of our credit businesses are scaling up on an asset-light, partnership based model, the capitalization is even more
impressive!
Business Metric Value
NBFC Capital Adequacy 27.5%

Housing Finance Capital Adequacy 36.5%
Asset Reconstruction Capital Adequacy 37.4%
Life Insurance Solvency Ratio 215%
General Insurance Solvency Ratio 209%
As part of Project Udaan, we have taken a fresh look and made tweaks where necessary to our business strategy. We are now
ready with a defined plan and armed with a strong war-chest of resources. Even as we continue to strengthen our core, we
are now also into gradual execution of the plan. As we look at the next five years, we are truly ready to take Udaan.
India – Visualizing the Next 25

The story of Edelweiss is closely aligned with the story of India. As India undertook a series of reforms in the early and mid-
1990s, it opened new windows of opportunity for entrepreneurs across industries. Financial services, especially, saw several
reforms like the setting up of SEBI as well as several fundamental changes in the industry itself, like the introduction of NSE.
It was in this backdrop that we started Edelweiss, with the confidence in India’s ability to provide very favourable tailwinds
to those with patience. And provide it has!
In the 25 years since our inception, India’s GDP has grown 8x from less than 0.4 trillion USD to 3 trillion USD. And this
growth has not just been seen in the GDP. Total credit in the system has grown 28x while total deposits are estimated to
be 38x! The mutual fund industry was non-existent at that point of time while today, the AUM stands at INR 34 trillion, still
only a fraction of the GDP and much lesser than global counterparts. The index, in the same period, has also become ~16x,
having been launched with a base value of 1,000 in 1996. These incredible growth trajectories have been driven by India’s
compounding triumvirate – ever-increasing size, strong growth rate and most importantly, the advantage of longevity. With
growth expected to be back on track by next year, the compounding juggernaut is just getting started.
In the next 25 years, we expect GDP to run in a similar trajectory, albeit on a humongous scale. With a GDP of USD 25 trillion,
India would potentially be bigger than the USA of today and probably the world’s third largest economy at that point of time.
USD billion
25,000
3,000
2046
2021
390
1996

India’s credit markets continue to be under-penetrated compared to the global economies. While the growth of credit
markets in the last 25 years has been driven by corporate credit and the evolution of the banking sector, we expect the
next 25 years to be driven by the growth of consumer and small business credit. NBFCs and new age fintechs will be at the
vanguard of this change. This transformation is already visible and will only accelerate in the time to come.
Similarly, we expect other segments of market to show significant growth as well – be it Mutual Fund and Alternatives
AUM, Housing Credit, Total Wealth – each one is expected to grow much faster than GDP as the current penetration in India
continues to lag far behind global metrics. In Jeff Bezos’ language, India is still only at Day 1!
` Trillion 2021 After 25 Years
Total Credit 125 2,000 16x
MF AuM 34 800 24x
Alternatives AuM 2.5 40 16x
Housing Credit 20 400 20x
Total Wealth 300 9,000 30x
Insurance Premium 4.5 100 22x
Next 25 Years - Our Anchoring Focus

Bob Iger, in his memoirs of his time at ABC and subsequently Disney, serving as the CEO from 2005 till 2020 (‘Ride of a
Lifetime’ – highly recommended!) mentions that as he became the CEO, while there were a lot of learnings from the past,
his focus was really on defining the future – what would be the key anchors/ priorities that would define each decision that
Disney made going forward. Our approach at Edelweiss has also been similar – while we have always been open about our
missteps and learnings from those, the focus always remains on the future. Our anchoring focus, as we look ahead at the
next 25 years, is on R+Q = G!
We are usually not into cryptic acronyms which leave our stakeholders wondering and second-guessing us on what we mean.
However, “R+Q = G” has become like a veritable mantra for us at Edelweiss, especially in the last year or so as we have looked
towards defining our approach for the next 25 years.
Resilience Quality Growth

This might look a very simplistic representation of our objectives, but a lot of thought and discussion has gone behind this
approach as also what lies underneath. Often in the past, we have worked towards growth, with the underlying assumption
that this growth will eventually lead to quality and resilience. And in many instances, it has as well! And insomuch as no
approach is perfect, we do feel that finding approaches that maximize the probability of success in long-term, even at the cost
of short-term, is what truly leads to value creation. The movie 3 idiots put it in possibly the most rustic but straightforward
manner –
Bachcha Kabil Bano, Kamyabi Toh

Jhak Maarke Peeche Bhagegi
It is therefore with the intention of attaining this ‘kaabiliyat’ that we are focused on building towards resilience and quality –
growth is a by-product which will come, partly through the quality and partly through India’s natural growth tendencies. So,
what does Resilience and Quality mean for us?
Resilience Quality
Fortress Balance Sheet Innovation
Ample Liquidity Integrity
Conservative on Risk Diversified in all aspects
Strong planning focus Culture of discussion and dissent
Margin of Safety Focus on ESG
This is obviously a journey and one which has been, in a way, underway for the last 25 years. Some of these aspects have been
accorded the highest of priority in our journey, some not so much. However, our intent is to make these the cornerstones of
our journey for the next 25 years with the underlying objective of achieving natural growth, backed by resilience and quality
of the highest order. This is the Edelweiss of the future that we will strive to create for all of you.
Yours sincerely,
Rashesh Shah
Chairman & MD

Sustainability
Report As one of India's leading diversified financial services company,
Edelweiss has always been on the forefront of sustainable growth,
both for its diverse stakeholders and for society at large.
Our 13 guiding principles, upheld by our management and
employees, have determined the values with which we operate and
conduct ourselves. Employees are frequently trained on the
adoption of these principles in their day to day operations. This
report is an extension of these values and our commitment to look
beyond our own growth, towards addressing larger societal,
environmental and governance challenges.
RESPONSIBLE PROTECTING THE

GOVERNANCE ENVIRONMENT
CONTRIBUTING
TO SOCIETY
We are early adopters of SDGs and have voluntarily

committed to uphold them across our operations.
ALIGNING WITH THE
SDG FRAMEWORK We have aligned with 9 of the 17 SDGs and we continue to
monitor our progress and the impact we create for our
multiple stakeholders across different focus areas.
42 l Sustainability Report
Sustainable Stakeholders
Development ESG Areas impacted/ Key Areas
Goals Operating of Focus
environment
Developing effective, accountable and transparent

Regulators institutions
Responsible Investors Responsive, inclusive, participatory and
Governance representative decisionmaking
Customers
PEACE, JUSTICE Promote a culture of compliance with the highest
AND STRONG Employees standards of integrity
INSTITUTIONS
Ending discrimination and violence against women
Society Promoting women empowerment
Employees Equal access to economic resources and equal
opportunities for leadership
GENDER EQUALITY
Promoting better female workforce participation
Creating a safe and healthy working environment
and enhancing efficiency and productivity
Employees Supporting job creation
Society Promoting entrepreneurship and encouraging
Economy growth of SMEs
DECENT WORK & Contribution to the economy by financing affordable
ECONOMIC GROWTH
housing and facilitating revival of stressed assets
Supporting responsible investment
Contribution Providing healthcare facilities to employees

Employees
to Society Encouraging healthy lifestyles
GOOD HEALTH
AND WELLBEING
Ensuring access to quality earlychildhood and

Society primary education
Supporting development of education
QUALITY infrastructure and teaching capabilities
EDUCATION
Supporting women to get access to rights and

entitlements
Society
Ensuring equal opportunities and reducing
REDUCED inequalities
INEQUALITIES
Aiding the development of resilience and

Economy adaptability to climaterelated changes
Society Enhancing awareness, education and capacity of
CLIMATE ACTION
climate change mitigation and adaptation
Increasing the share of renewable energy in

Protecting the Environment energy consumption
AFFORDABLE AND
Environment Improving energy efficiency
CLEAN ENERGY
Using natural resources efficiently

Environment Environmentally sound management of waste and
limiting waste generation
RESPONSIBLE
CONSUMPTION AND Reducing release of emissions and GHGs
PRODUCTION

OUR STAKEHOLDERS AND
OPERATING ENVIRONMENT
At Edelweiss, we view sustainability as an extension of our operating structures, ensuring sustainable practices are adopted across
business functions.
We engage with diverse stakeholders to understand their key requirements and concerns. Our aim is to address their needs by
instituting appropriate systems, processes and strategies across the Group, delivering high value to them.
Key Sustainable
Stakeholders/ Material Our Link to the
Topics Objectives Development Detailed
Areas of Goal Mapping
Impact Report
Adhering to the highest standards of

Corporate Governance Read More...
corporate governance practices and
Regulators Compliance ethical behaviour; Creating a safe Responsible
Ethical & transparent and reliable financial services Governance
practices
ecosystem through policy advocacy
Satisfactory services Ensuring consistent, highquality Read More...
Customers Multiple channels customer experience by creating Enhancing

Responsiveness a customer centric culture Customer
Data privacy & security focused on their needs Experience
Shareholder value
Financial performance
Protecting and increasing
Corporate Governance Read More...
Investors shareholder value and focusing
Compliance Catering to our
on sustainable growth and
Risk Management profitability Shareholders
Disclosures &
Transparency
Enriching career Enabling employees to thrive, feel

Learning, Development respected and valued, and help in
Read More...
Employees & Training achieving their full potential;
Health & Wellness Providing a safe and enabling Our People
Benefits environment with a focus on
employee wellbeing
Women empowerment
Gender equality Read More...
Society Enabling sustainable and equitable
Education Contribution to
Livelihoods development
the Society
Rural development
Contributing to the national agenda

Promotion of SMEs by supporting small businesses, Read More...
Economy Civic infrastructure financially empowering enterprises Contribution to
& housing and individuals and developing the Economy
housing infrastructure
Responsible consumption Read More...

and production Minimising adverse environmental Protecting our
Environment impacts
Efficient use of natural Environment
resources
Edelweiss is committed to adhering to the highest standards of corporate governance practices and
ethical behaviour. Our policies and procedures consider applicable national and global laws and
Responsible regulations, providing clear guidelines on expected professionalism and behaviour.
Governance
PEACE, JUSTICE AND STRONG INSTITUTIONS

BOARD COMMITTEES AND ORGANISATION
Board of Directors
Key Committees of the Board

Chairman &
Audit Risk Managing Director
Nomination & Stakeholders’ Executive Business CEOs

Remuneration Relationship Directors
Information CSR Compliance & Chief Financial

Technology Secretarial Officer
GOVERNA NC E STRUCTURE
12member Board with majority independent directors and two women directors. All major committees are dominated and
chaired by independent directors.
Balanced and rich Board composition with over 400 manyears of experience
Board members strive for 100% attendance and active participation in all Board and Board Committee meetings
Board Composition (As on March 31, 2021)
Executive Directors NonExecutive Directors Independent Directors
Rashesh Shah Vidya Shah P N Venkatachalam

(Chairman & Managing Director) (Non‐Independent Director &
Berjis Desai
Chairperson, Edelweiss ESG Council)
Venkatchalam Ramaswamy Navtej S. Nandra
(Vice Chairman & Executive Director)
Kunnasagaran Chinniah
Himanshu Kaji
Biswamohan Mahapatra
(Executive Director)
Ashok Kini
Rujan Panjwani
(Executive Director) Dr. Ashima Goyal

Responsible Age Composition of the Board
Governance Eight Board members in the age group of 2 2
50 to 64 years and four in the age group of
65 to 75 years
2
4
2 Detailed profile of our Directors and
details of the composition of the Board
committees and their terms of
5054 Yrs 5559 Yrs 6064 Yrs 6569 Yrs 7075 Yrs reference are available on our website.
ESG GOVERNANCE AT EDELWEISS

We have an ESG council in place since FY20 to provide effective governance on ESG parameters.
A women majority body, the ESG Council Brings together rich and Supported by a team of sustainability
comprises heads of various varied experience of managing champions from various enterprise
enterprise units key stakeholder relationships units who monitor and track
performance on various identified
ESG parameters
Edelweiss's ESG agenda is further augmented by a CSR Committee and EdelGive Foundation.
LEGAL AND REGULATORY COMPLIANCES

Operate with a strong culture of compliance, regulatory standards and remediation of escalations
Independent Compliance Officers for each business entity and decentralisation of ownership
Automation of regulatory compliances through technologybased applications
Periodic review of regulatory compliances, directives of sectoral regulators and the SEBI LODR by the Audit and
the Board Committees
FRAMEWORKS AND POLICIES
Code of Conduct adopted at an

organisational level for employees,
senior management and Directors Information Conflict of
Security Interest
covering critical areas such as professional
integrity, honesty and ethical conduct Data Antibribery
Privacy and
Corruption
Code of
POSH Conduct Prohibition
Policy of Insider
Trading
Whistle These polices are available for

Blower reference on our website. Additionally,
Policy AntiMoney Antifraud
our detailed report on Responsible
Laundering
and Counter Governance summarises the key
Financing of highlights and details on
Terrorism implementation of these policies.
Responsible
Governance
Compliance and risk consciousness Over 60 Internal Complaints All employees at the time of joining Edelweiss and
amongst employees Committee (IC) members thereafter on an annual basis, are required to complete
trained on POSH policy, trainings on AntiMoney Laundering and Counter Financing
investing over 1,590 of Terrorism (AML/CFT), Prevention of Sexual Harassment,
training hours Prohibition of Insider Training, Whistleblower Policy
through the SHIELD module
Reported and investigated three POSH cases in FY21, which were concluded with appropriate actions
Two whistleblower complaints received via online portal, email and post in FY21, were investigated, none of which were identified
as a whistleblower case
Periodic communication on awareness and training for all the relevant stakeholders provided
RISK MANAGEMENT
Business Risk
Board has formulated Risk Management policy to manage risks Physical & Credit Risk
and it is included in our 13 guiding principles, making it a part of Infrastructure Risk
our culture
Risk Management Committee constituted to devise and adopt risk Market Risk
management frameworks and plans for identification, evaluation Fraud Risk
and assessment of risks
Eleven Risk Framework adopted to identify, quantify and monitor
11
risk events in a comprehensive Risk Register across the Group
RISK
FRAMEWORK Liquidity Risk
Incident/Exception reporting mechanism adopted to ensure People Risk
timely reporting on deviations from the policies and processes
Mandatory Risk Management Training Programme for employees
facilitated Regulatory Risk
Operation &
Independent assurance on the effectiveness of the risk Process Risk
framework provided by Internal Audit
Reputation Risk
Technology Risk
DATA PRIVACY
Data Privacy policy and processes in place to ensure In the process of embedding the Data Privacy programme
adequate safeguards for collection, storage and processing in the enterprisewide risk management framework
of personal and sensitive information and data of customers
No reported cases of losses of customer data and breaches
and third parties
of customer privacy
Enabling firewalls, intrusion detection systems, network
monitoring, encryption and other tools to prevent and
detect cyber security attacks
SECURITY & IT GOVERNANCE
Moved to zero trust security model, given shift in working Implemented stateoftheart security solutions for data
model, which requires strict identity verification for every classification, data protection, data loss prevention, advanced
person and device, trying to access resources on a private threat protection, zeroday protection, etc.
corporate network Strengthen IT Governance and focus on process
Prioritised Cloud security framework and Governance at standardisation
Edelweiss Group for the year
Responsible
Governance
SUPPLIER AND VENDOR RELATIONSHIP MANAGEMENT

Framed Comprehensive Enterprise Procurement Guidelines in accordance with the Edelweiss Environment Social and Governance policy
Rolled out and adopted the framework across the business groups within Edelweiss
Mandatory vendor signoff on a Supplier Code of Conduct initiated, specifically enumerating vendor compliance with applicable
environmental laws, regulations and other ESG parameters
Know Your Vendor (KYV) norms adopted by Edelweiss covers all stages of the vendor lifecycle
POLICY ADVOCACY
Active participation in industry bodies and associations, policy discussions to highlight and address concerns on financial and
economic growth, sustainable development and climate change
Part of AIMA (All India Management Association) APAC ESG Working Group
INVESTOR RELATIONSHIP MANAGEMENT
We recognise our shareholders and investors to be one of our most important stakeholders and strive to create and
protect value for them. We engage proactively with our shareholders and have developed effective mechanisms and
relationship management systems that enable us to effectively plan, execute and keep a track of our investor
outreach initiatives.
Shareholder base of ~174,000 retail and institutional Eight events and outreach programmes hosted in FY21.
investors as on Mar’ 2021 Four domestic conferences and four post results analyst
Timely and accurate disclosure of regulatory compliance conference calls
w.r.t material events, updates and financial performance Ensured coverage by six research houses
Proactive engagement with shareholders Continued focus on enhancing the quality of disclosures to
Effective mechanisms and information systems enabling investors and analysts, through benchmarking with peers
planning, executing, and tracking investor outreach Proactively gathered investor feedback, channelised to
initiatives adopted the company management after analysis for potential
Multiple modes of communication adopted with investors actionable inputs
Userfriendly interface for contact through web query/request
Stock exchange filings Media interactions
form on service and information requirements
Investor collaterals Website
Robust Investor grievance redressal systems adopted
Annual General Meeting Conferences
Four investor complaints received and disposed off in FY21
Analyst calls Emails
CUSTOMER EXPERIENCE
At Edelweiss, we serve a diversified client base that includes corporations, institutions and individuals.
We put our customers at the centre of all that we do.
~2.1 million customerbase as of FY21 Robust measurement of customer experience through a

Addressing customer concerns through physical, digital, ATL combination of metrics:
and BTL engagement, across customer journey, from pre Digital Net Promoter Score
sales to servicing Customer Satisfaction Surveys
Robust Customer Experience Framework adopted Individual business led performance measures
Sophisticated complaint management systems adopted Constitution of a Customer Council comprised of senior leaders
Customer Experience Officers Forum initiated to share best
practices and drive learning across customer representatives
At Edelweiss, it is our constant endeavour to create value for all our stakeholders, but most
Contributing importantly, for society at large. Through our business and philanthropic initiatives, we aim to create
to Society an equitable and sustainable environment of growth for communities to survive and thrive.
Gender Decent work and Good health Quality Reduced

equality economic growth and wellbeing education inequalities
GENDER EQUALITY
WOMEN EMPOWERMENT & GENDER EQUALITY
Our philanthropic initiative, EdelGive Foundation, is committed to addressing the social and economic inequalities that prevent
women and girls from achieving their full potential, with a focus on the following five priority areas:
Freedom from Violence Access to Grassroots Access to Freedom from

and Discrimination Legal Justice Leadership Rights and Economic
Entitlements Dependence
EdelGive has supported 14 projects with 13 NGO partners across 9 states in India in FY21. Over the years, through our NGO
partners we have been able to create significant impact:
1,74,052 Formed 5,456 23,633 42,353 Supported 25,174 6,399

(16,618 in FY21) (2 in FY21) (3,838 in FY21) (16,527 in FY21) (5,097 in FY21) (634 in FY21)
women and girls SHGs/JLGs women and girls women supported to survivors of domestic grassroots leaders
supported in their fight supported under get access to rights violence and/or sexual developed and
for addressing Gender financial inclusion and entitlements violence in their supported
Equality related issues programmes legal journey
The Coalition for Women Empowerment was initiated by EdelGive Foundation, and the Bill and Melinda Gates
EdelGive in 2019, bringing together funding organisations and Foundation India office and Sattva seek to bring together
grassroots organisations as stakeholders, united by a common industry leaders, philanthropic organisations, and leaders
mission of facilitating social and economic empowerment of within corporations in a Women's Economic Empowerment
women and girls in India. It focuses on providing 360degree (WEE) Collective which aims to, over the next two years, work
support to grassroots organisations through enabling funding for together to make significant shifts in the women's economic
critical rightsbased programmes. participation landscape in the country.
EdelGive Foundation has launched the #UdyamStree Campaign
in Oct’ 2020 as an initiative to boost the entrepreneurial spirit in
women and gradually create a conducive ecosystem for women
to thrive.

Contributing
to Society WORKFORCE DISTRIBUTION
We have one of the better female workforce participation rates in the financial services industry in India.
Proportion of Female employees by Management level for total employees,

new hires and exits:
27% 26%
23% female employees 19%
17% 17%
in total workforce 12% 15% 13%
as of March 31, 2021
4%
21%
As on March 2021 New hires Exits
21% of the total

2,353 contract staff
are females Junior Mid Senior
DECENT WORK AND ECONOMIC GROWTH

INCLUSION AND WORKPLACE DIVERSITY
Edelweiss boasts of experienced and diverse talent across different entities of the Group. Through our unique inclusion initiative All In.,
we reinforce tenets that enable employees with different backgrounds, gender, ways to thinking, style of operating to work effectively
together and holistically play to their strengths. Our procedures ensure the absence of discrimination by providing fair and equal
opportunities to all employees and applicants.
Propagating an inclusive workplace respecting distinctive Inclusive brand – All IN ensures diversity across the Group:
skills, experiences and perspectives: You are INtegral to the Edelweiss family
Sensitivity towards inclusion strengthened across Your INdividualism makes you unique
employees and leaders Your opinions are INvaluable
Inclusion as a competitive advantage for Edelweiss You should speak up without INhibitions
Implemented through policies and practices You INspire others with your ideas
You INvolve others to get a fresh perspective
PERFORMANCE MANAGEMENT
At Edelweiss, a robust performance management system enables employees to identify areas of strength as well as improvement
and set individual goals for themselves, which are in line with the overall business objectives.
SMART Goal Midyear Annual Appraisal

Setting Review process
All eligible on roll employees Yearround assessment process Manager feedback sessions
undergo a performance review conducted through, ‘Train
excluding midyear joiners and the Trainer’ model
exits before six months
Contributing
to Society
LEARNING AND DEVELOPMENT
Our training and development initiatives enable our employees to enhance technical and behavioural
skills that are required for their professional and personal growth.
Average hours of training/employees by gender and by management level*
10.4 11.9
10.2 10.2
9.7 8.7
4.2
FY 2021 FY 2021
Male Female Overall Senior Mid Junior Overall
* Avg. number of hours = Total Training hours / Number of employees who have undergone training
~117,840 hours of training undertaken in FY21

~5% of employees belong to a Leadership Group at Edelweiss1
Diversified leadership development programmes:
Programme Particulars
Cohort of seniormost leadership

Managing
Committee Custodian of culture, values and synergies across the Group
(ManCo) Development of Programmes is bespoke and tailor made according to each leaders' needs
SLs are the connective tissue of the organisation and form the bridge between
Senior strategy and execution
Leaders (SL) Structured engagement and development opportunities provided
50% of the SLs have a tenure greater than 5 years
Cohorts of leaders specific to the businesses

Mid Level
Leaders These programmes are to build business specific functional and managerial
capabilities amongst the chosen cohorts
¹ Includes some employees who are part of the Young Leaders programme at Edelweiss Tokio Life Insurance
Educational Assistance Policy adopted to facilitate educational progress of wards of employees through financial assistance.
Availed by 48 employees
Extended support worth `20 million
EMPLOYEE WELFARE
Diverse Employee Welfare Programmes
Flexi Working Hours Work from Home Parental Leave policy Bereavement Leave Sabbatical Leave Mediclaim and COVID19
coverage in health policies

Contributing
to Society
AWARDS AND RECOGNITION
To recognise, acknowledge, appreciate and reward the stars across the organisation, Edelweiss also
has several internal awards and recognitions for employees.
135 employees felicitated with the Long Service Awards for completing 10, 15 and 20 years in the
calendar year 2020. The felicitation ceremony was conducted online due to the lockdown.
CONTRIBUTION TO THE ECONOMY
As one of India's leading diversified financial services group, our goal at Edelweiss is to achieve maximum returns to our stakeholders
while simultaneously having a positive impact on society and economy. Our strength comes from our diversified business model
which provides our customers with varied financial products and services to meet their economic goals.
Responsible Investment Employment provided by Edelweiss

Voluntarily adoption of ESG policy, anchored to Principles of
Responsible Investment (PRI) and UN Global Compact's 10
principles, by Edelweiss' Asset Management entity (EAAA) –
India's largest player in Private Debt (AuM of ~`300 billion
as of FY21)
Diverse workforce of 8,518
Material ESG issues focusing on human rights, labour,
employees as of March 31, 2021
environment, anticorruption and bribery taken into
consideration by EAAA
List of exclusionary sectors formulated
Internal and external ESG due diligences undertaken before 4%
making an investment
Published 1st EAAA ESG Report in FY20 and will continue to
publish every year showcasing performance against adopted
benchmarks
~4% of the workforce
is less than 25 years of age
SUPPORTING SMALL ENTERPRISES
Financing working capital needs of small Customised loans to purchase Salary Advance product empowers
entrepreneurs through business loans with equipment/machineries to help employees from the MSME sector to avail
average ticket size of r1.4 million and micro and small enterprises build an advance on their salary
secured business loans with average ticket their manufacturing capabilities
size of r5.5 million across 40 locations
Of the loans extended Created indirect employment opportunities to ~10,000 people

48% to Women Entrepreneurs through financing of MSMEs
25% in nonmetro cities
Contributing AFFORDABLE HOUSING
to Society
51% of the housing loans financed Serving ~15,700 customers Average Ticket Size of affordable homes
in FY21 were in affordable with an average household income financed is ~`1.4 million
housing segment of ~`0.56 million
Of the loans extended:

47% of the customers are new to credit
Over 42% of individual customers are women
Over 76% of the loan book accounts for homes ~`170 million of subsidies under PMAY scheme
in tier 2 & tier 3 locations was given to 684 borrowers in FY21
ASSET RECONSTRUCTION
Acquired distressed assets Revived 179 assets during the year Protected over 25,000 jobs
worth ~`16.5 billion for revival and with total recoveries of ~`54 billion through revival of
restructuring during the year sick companies since inception
INSURANCE
st
Covered ~9,11,700 lives as on 31 March'21 Covered ~16,51,500 individuals under our Health Insurance policies
GOOD HEALTH AND WELLBEING

EMPLOYEE HEALTH AND SAFETY
Edelweiss's biggest strength has always been its people and their wellbeing and safety is core to our culture of employee
care. With onset of remote and hybrid working, we strengthened our resolve that in mind, body and soul, we will continue to
stay #FitWithEdelweiss.
~90% of our employees We have taken all the required measures for our ~21% of employees availed
have been operating from office premises in order to make it safer for our Mediclaim benefit for self and
home or other remote locations critical resources who are required to come to work ~11% availed for their family members
COVID19 Coverage in Corporate Doctor Helpline Service – An exclusive Counselling Services for employee and their family
Health Insurance Policy dedicated helpline service that connects members. It is a nonjudgemental, confidential
for employees and their employee with a qualified doctor providing platform for employees to reach out to expert
dependent family members WHO/GOI verified information counsellors for free online consultation on variety
of wellbeing and health topics. ~600+ employees
have availed the services.
Contributing
to Society
Making wellness accessible on fingertips through Round Glass Reach App – our digital wellbeing platform engaging
employees through:
Webinar series by nutritionist and health coaches Parenting webinars
Multiple fitness routines/challenges Reading materials on variety of wellbeing topics
~2,000+ employees have been engaged on our Habit forming nudges
digital wellness platform
Reduce risks to all its employees to drugs Fire Safety Site Inspections, Building
and other illegal substances by providing Evacuation Drills and Fire Safety trainings
a Drug Free Workplace executed in regular intervals
QUALITY EDUCATION
EdelGive Foundation aspires to provide children with equal access to quality education, irrespective of background, gender and
socioeconomic standing. The Foundation works in collaboration with government systems to achieve widespread, longterm change
and empower the community to make this change sustainable. Their work is broadly categorised in four priority areas:
School Early Childhood Innovation & Research &

Transformation Education Experimentation Advocacy
Executed 17 education programmes, through 11 NGO partners of EdelGive Foundation
Reached out to 19,48,196 Supported 27,269 Worked closely with and supported over 67,854
(2,53,100 in FY21) children through our (5,086 in FY21) schools through (8,790 in FY21) teachers and
learning enhancement programmes, the Quality Education Programme Government officials for delivery
surpassing our own target this year of quality education
EdelGive launched, The Collaborators in 2016 to support the Government of Maharashtra in addressing persistent gaps in learning
outcomes of children in government schools. With a modest beginning in 4 out of 36 districts in Maharashtra, the programme has
expanded to 7 districts, with 7 funders and 3 nonprofit organisations (NPOs), reaching over 1.4 million children in five years.
Furthermore, the Government of Maharashtra signed an MoU with EdelGive Foundation for the next five years with the provision
to expand to all districts of Maharashtra.
Contributing
to Society
REDUCED INEQUALITIES
Through contextual and targeted interventions developed by EdelGive Foundation's NGO partners, we are working to develop sustainable
livelihood options for some of the most vulnerable communities, through systemic transformation in four focus areas:
Water for Financial Skill & Employability Skill

Livelihood Inclusion Institutional Building Building
Through EdelGive Foundation’s NGO partners, we
Empowered and promoted the 42,353 (16,527 in FY21) Upskilled over 13,442 farmers (2,914 in FY21)
social and economic inclusion of women supported to get access through various capacity building training
farmers, women and youth to rights and entitlements programmes in sustainable agricultural techniques
Achieved average 30% enhancement 8 Farmer Producer Companies Funded ~`1.36 billion (~`0.93 billion in FY21)
in annual income of farmers in FY21 (FPCs) supported towards Sustainable Livelihood Programmes
EdelGive became strategic partners to the Migrants Resilience Collaborative focused on ensuring safe and responsible recovery of
migrant families and their livelihoods in India post COVID19. The Collaborative will support 10 million workers and their families in
100 districts and cities over the next 5 years.

Protecting the
Environment
Building and supporting sustainable practices is the bedrock of our stewardship towards protecting our environment.
Edelweiss is committed to adopting and supporting responsible usage of natural resources and safeguarding our
environment and climate through varied initiatives across the Group.
Climate Action Affordable and Responsible Consumption

Clean Energy and Production
CLIMATE ACTION
EdelGive Foundation works with grassroots organisations in remote parts of rural India to build resilience amongst communities.
WATERSHEDS AND LIVELIHOODS
Supported construction or repairs Brought under irrigation 1,553

of 298 (82 in FY21) watershed (342 in FY21) hectares
structures for water conservation of land, for enhanced agriculture yield
Supported 13,442 families Supported 11,568 farmers

(2,914 in FY21) through (2,121 in FY21) for climate
sustainable livelihood programmes smart agriculture/organic farming
EdelGive Foundation became a core partner to the India Climate Collaborative, a first of its kind initiative bringing together India's
top philanthropies to address the increasing and pressing climate crisis in India. Partnership aims to work towards promoting ecological
balance through a cobenefits approach. Eminent global philanthropies like MacArthur Foundation, Bloomberg Philanthropies,
Oak Foundation, to name a few, have extended their support to this alliance.
Protecting the
Environment
AFFORDABLE AND CLEAN ENERGY

We are committed to improving energy efficiency and increasing the proportion of renewable energy usage across our
operations, through investments in sustainable energy solutions.
ENERGY CONSUMPTION AND SAVINGS*
Total electricity consumption

(Mwh)
8,115
7,456
2020 2021
Reduction in total electricity consumed Through energy consumption optimisation initiatives,
by 8% to 7,456 Mwh in FY21 energy intensity reduced by 8% YoY to 136 kWh/sq.mt. p.a. in FY21
which is 19% lower than BEE standards
Renewable energy capacity

1.2 MW solar power captive generation installed capacity at Solapur generated 777 Mwh in FY21
Solar rooftop generation capacity of 0.06 MW at Fountainhead, Alibaug generated ~47 Mwh in FY21
Wind Power Purchase Agreement (PPA) for 2.8 MW capacity generated 260 Mwh units in FY21
ENERGY SAVING INITIATIVES
Default ambient temperature of all public areas

and meeting rooms set at 24°26°C as per BEE
and government regulations 85% of fixtures Automatic switches Sleep mode and night
converted from and sensors installed in mode lighting automation
HVAC schedule running operation modified, conventional lighting unmanned areas to enabled to conserve
reducing the unnecessary usage of ACs to LED reduce/optimise electricity
energy consumption
*Data for our 3 key locations (Edelweiss House, Kohinoor House and Fountainhead) which house ~33% of our total workforce

Protecting the
Environment
RESPONSIBLE CONSUMPTION AND PRODUCTION

We are committed to ensuring resource efficiency in our operations, by responsibly managing waste and
attempting to reduce the GHG emissions wherever possible.
WATER CONSUMPTION *
Total water consumption reduced by 76% YoY
Total water consumption Water consumption by source

(Megalitres) (Megalitres)
Recharging grid lines installed Installed waterless pots
for water charging from canal at all urinals
4.8 during monsoon
59.9 14.2 9.4
2020 2021 Reduction of water consumption 1.4 Megalitres of waste and

through Fine Aerators sewage water has been recycled
Water consumption ThirdParty Ground through a sewage treatment
plant at Fountainhead for
garden use
EMISSIONS * WASTE MANAGEMENT *

Reduction of 64% in both GHG emissions and GHG intensity 3Rs of Waste Management, viz. Reduce, Reuse and Recycle
via effective carbon management initiatives in FY21 have been organically incorporated in our daytoday routines
GHG emissions Kilotons Kg/sq.ft. p.a.
0.2
23.5
Plastic water bottle 3.9 tonnes of food waste
8.5 converted into compost
4.8 consumption reduced
by 12,000 bottles by composting machine
2020 2021
Scope 2 Scope 3 GHG Intensity
Scope 1 emissions was Nil during the year

During the last financial year due to COVID, we had negligible air 3.2 tonnes of paper waste converted into green Edelweiss
writing pads with the help of associated NGOs
fuel emissions as business travel got reduced drastically
*Data for our 3 key locations (Edelweiss House, Kohinoor House and Fountainhead) which house ~33% of our total workforce
EdelGive
Founded in 2008, EdelGive Foundation is the
philanthropic initiative of Edelweiss Group. Over the
last 13 years, EdelGive Foundation has emerged as
a grant-making organisation and philanthropic asset
Foundation management platform, helping to build and expand

philanthropy in India by funding and supporting the
growth of high-calibre, small to mid-sized NGOs.
Our Influence over the years
14 states and
158
123 districts of India
Over
NGO Partners supported
NGO
Dedicated
4.61through
ìnfluenced billion
~40,000
employee
~165
capacity
engagement building and skilled
commitments to NGOs hours volunteering projects
SUPPORTING THE GROWTH OF Grants

CREDIBLE NGOs To high-calibre, small to mid-size NGOs empowering
In FY21, we are proud to share that we have been

able to influence over `1.3 billion as commitments
to NGOs working across the country. Our 46 NGO
CHILDREN WOMEN VULNERABLE
partners are working tirelessly towards providing Through Through COMMUNITIES
quality education for children, ensuring social and Education Empowerment Through Resilience Building
economic empowerment of women, and building
resilient communities.
Grants are used towards both the financial and
capacity building needs of the NGO partners we
support.
Financial Support Non-financial Support
Building new Capacity Building

programmes • Finance & Sustainability
• HR & Communications
Scaling existing • Strategy & Leadership
programmes • Processes & Technology
Awareness Building

Social and Economic Women Empowerment of Women
EdelGive Foundation is committed to addressing both social and economic inequalities that
prevent women and girls from achieving their full potential, with focus on five key priority
areas:
Freedom from Access to Grassroots Access to Rights Freedom from

Violence and Legal Justice Leadership and Entitlements Economic Dependence
Discrimination
In FY21, we supported 14 projects with 13 NGO partners across 9 states in India. Our partners have been able to reach
over 1,74,052 (16,618 in FY21) women and girls in their fight for addressing Gender Equality related issues.
For more information, please refer to our Sustainability Report on page 42
Access to Quality Education

EdelGive Foundation aspires to provide children with equal access to quality education,
irrespective of background, gender and socio-economic status. We work in collaboration
with government systems to achieve widespread, long-term change and empower the
community to make this change sustainable. EdelGive Foundation broadly categorises its
work around four priority areas:
School Early Childhood Innovation & Research &

Transformation Education Experimentation Advocacy
In FY21, we have worked with 11 NGO partners while supporting 17 projects across 6 states of India. Over the years, through our
NGO partners we have been able to reach 19,48,196 (2,53,100 in FY21) children through our learning enhancement programmes,
surpassing our own target this year.
LIVELIHOODS
Through contextual and targeted interventions developed by our NGO partners, we
are working to develop sustainable livelihood options for some of the most vulnerable
communities, through systemic transformation in four focus areas:
Water for Financial Skill & Employability Skill

Livelihood Inclusion Institutional Building Building
In FY21, EdelGive has supported 17 projects of 15 NGO partners, working with the most vulnerable communities across 9 states in
India. Through our NGO partners, we have been able to create significant impact, including an average 30% (FY21) enhancement in
annual income of farmers.
60 | EdelGive Foundation
BUILDING CREDIBLE PARTNERSHIPS
Our unique philanthropic model places us at the centre of grant-making. In addition to providing grants to our partners, we also
invest our energies in sourcing and managing funding from other institutional, individual, and corporate partners. This assists both
partners – the NGOs and funders – to diversify their outreach and impact.
We follow four approaches

to grant-making
EdelGive Grants Co-Funding Pooled Funding Advisory

EdelGive individually Large funders, EdelGive builds structured EdelGive provides
funds organisations and foundations and and transparent strategic counsel to
their programmes individuals join EdelGive collaborative models organisations on
in making grants for pooled funding grant-making
EdelGive believes in a Collaborative Philanthropy Approach and is currently engaged in six collaborative initiatives:
• The Collaborators for Transforming Education – EdelGive launched The Collaborators

in 2016 to support the Government of Maharashtra in addressing persistent gaps in
learning outcomes of children in government schools. The Collaborators focuses on three
specific objectives, using the constructivism approach:
Enhancement in learning outcomes of children
Support the education system by conducting capacity building of educational
functionaries at multiple levels
Improved community engagement for sustainability
With a modest beginning in 4 out of 36 districts in Maharashtra, the programme has expanded to 7 districts, with 8 funders
and 3 non-profit organisations (NPOs), reaching over 1.4 million children in 5 years. The programme is collectively supported
by Tata Trusts, Sita Devi Malhotra Trust, Great Eastern Shipping, Dalyan Foundation, HT Parekh Foundation, Credit Suisse and
Soujanya Colors.
The Collaborators has been recognised as one of the most important Public Private Partnerships (PPP) in Maharashtra, for being
amongst the best practices in CSR.
For more information read here.
• The Coalition for Women Empowerment (CWE) – EdelGive’s second collaborative,

the Coalition for Women Empowerment, was initiated in 2019 with an aim to provide
360-degree support to grassroots organisations working on women’s rights, through
enabling diversified funding and capacity building for improved effectiveness and
efficiency. The CWE brings together funding organisations and grassroots organisations,
to support initiatives addressing gender based violence faced by women and girls,
enabling grassroots leadership, access to legal justice, rights and entitlements, and
employment and entrepreneurship assistance. The coalition is currently supported
by Ford Foundation, Chintu Gudiya Foundation, Forbes Marshall and David and Lucile
Packard Foundation and a group of prominent leaders from philanthropy, business,
media, and public service called The Influencers.
Constructivism is a theory which posits that people construct their own understanding and knowledge of the world based on observation and scientific study.
1

• India Climate Collaborative – The learnings from both the ongoing coalitions
encouraged and enabled EdelGive to become a core partner to the India Climate
Collaborative, a first of its kind initiative bringing together India’s top philanthropies
to address the critical climate crisis in India. EdelGive Foundation brings years of rich
experience of working with organisations with a deep penetration at the
grassroots, to ICC’s technical expertise. With the combined holistic understanding of
the development space from a climate lens, the partnership aims to work towards
promoting ecological balance through a co-benefits approach. Eminent global
philanthropies such as MacArthur Foundation, Bloomberg Philanthropies and Oak
Foundation to name a few have extended their support to this alliance.
• Migrants Resilience Collaborative – In 2020, amidst the COVID-19 pandemic,

EdelGive became a strategic partner to the Migrants Resilience Collaborative
(an initiative of one of our partner NGOs, Jan Sahas), which is a multi-stakeholder
collaborative of non-profit, philanthropic and private sector actors such as Michael
and Susan Dell Foundation, Laudes Foundation, HSBC, Co-Impact, UNDP, to name a
few. The Collaborative is focused on ensuring the safe and responsible recovery of
migrant families and their livelihoods in India, post COVID-19. Further, the
Collaborative will support 10 million workers and their families, in 100 districts and
cities (across source and destination) over the next 5 years.
• Pay-What-It-Takes initiative – In 2020, EdelGive joined the Pay-What-It-Takes

initiative, a multi-year initiative working towards awareness building, strategic
guidance and NGO engagement with an aim to build a resilient non-profit sector.
The initiative is led by The Bridgespan Group and five anchor partners in addition
to EdelGive: A.T.E. Chandra Foundation (ATECF), Children’s Investment Fund
Foundation (CIFF), the Ford Foundation and the Omidyar Network India. Each
partner believes strongly in the importance of better understanding true costs and
brings in their capacity building approach to the initiative.
• EdelGive Hurun India Philanthropy List and Report 2020 – On 7 November 2020,
Hurun India and EdelGive released the 7th annual ranking of the most generous
individuals in India. EdelGive Foundation has partnered with Hurun India towards
creating this list and report, to understand and acknowledge philanthropic giving in
the country from a data and evidence point of view. The report is not only significant
in understanding data of giving, but also throws light on the sectors and geographies
which are at the receiving end of this giving. Through this report, EdelGive and
Hurun India aim to bring to notice the strength of the social sector, and access areas
which require further growth.
This year, the EdelGive Hurun India Philanthropy List featured individuals who have
donated `50 million or more during the period under review.
Read the report here.
• The GROW (Grassroots Resilience Ownership and Wellness) Fund is an initiative
developed by EdelGive Foundation aimed towards building, supporting and
sustaining 100 grassroots organisations across India, over 24 months. In the context THE
GROW
of the challenges faced by these organisations during the pandemic, the Fund will
be used to create sustainable and resilient organisations by funding capability/
capacity building needs; core costs and important functions; and future-readiness. FUND
Grassroots | Resilience | Ownership | Wellness
The GROW Fund has received support from Manan Trust, Rohini Nilekani
Philanthropies, Bill and Melinda Gates Foundation, A.T.E Chandra Foundation and
Edelweiss Group, along with other partners, and is poised to garner further support
from other Indian and international philanthropies and HNIs.
UDYAM STREE – A NATIONAL CAMPAIGN TO PROMOTE

WOMEN ENTREPRENEURSHIP
Acknowledging the need to address the dismal data and trend of fewer women
being an active part of India's economy, EdelGive supported by Children’s Investment
Fund Foundation (CIFF) has launched the #UdyamStree Campaign in October 2020,
as an initiative to boost the entrepreneurial spirit in women and gradually create a
conducive ecosystem for women to thrive.
With our partner Impact PSD, a detailed research report titled ‘Landscape for Women Entrepreneurship’ was launched in April
2021, in the presence of Mr. Amitabh Kant, CEO, NITI Aayog, and Mr. Ram Mohan Mishra, Secretary, Ministry of Women and Child
Development, Government of India, and other dignitaries from the government, corporates and civil society. Serving as bedrock for
a nation-wide campaign for promoting women’s entrepreneurship in India, this report has been lauded by prominent members of
various stakeholder groups.
Udyam Stree's aim is to bridge the gap of awareness around existing government schemes and yojanas, enable more financial literacy,
facilitate better access to mentoring, markets and networks for women and most importantly, affect a multi-stakeholder interest and
commitment in ensuring an increase in women's entry and retention in the entrepreneurial world.
Report launched by Chief Guest of the event – Mr. Amitabh Kant, CEO, NITI Aayog
Mr. Ram Mohan Mishra, Secretary, facilitated the event as the event chair
Ministry of Women and Child Development

CAPACITY BUILDING
EdelGive offers non-financial support to NGOs, by providing capacity building
across four key areas: Finance and Sustainability, Human Resources and
Communication, Strategy and Leadership, and Processes and Technology.
Through our initiatives, we provided support to 70+ NGOs during the last financial
year through various trainings, workshops, Intensive support etc.
• EdelGive Foundation has partnered with 3 Capacity Building agencies to
provide support in the areas of Technology adoption, leadership and overall
impact optimisation
• EdelGive is working on 4 ongoing projects with partner-NGOs in the domains
of Financial Management, Human Resources and Communications Virtual workshop on FCRA Amendments
EMPLOYEE ENGAGEMENT
EdelGive draws on the Edelweiss employee volunteer pool and external agencies to cater to NGO needs. This year, Edelweiss
volunteering has grown with:
• 30 virtual activities including in-kind donation drives
• Outreach across 100 cities and 125 branches of the Edelweiss network
• Over `3 million raised through employee donations
• 70% (28% in FY21) Edelweiss employees engaged in financial and non-financial volunteering over the years
With lockdown imposed during most of last year, virtual volunteering has been enabled for employees across the Group:
• 25+ Edelweiss employees and their children participated in the Junior COVID Warriors campaign hosted by EdelGive in
collaboration with Campaign Gratitude and raised over `0.2 million towards supporting our partner Aajeevika Bureau.
Matched by EdelGive, the total commitment amounted to over `0.6 million
• 435 Edelweiss employees raised over `0.9 million through fundraisers for COVID-19, to support our partner organisations CORO
India, Jan Sahas, SOVA and Pragati.
• As part of ‘Daan Utsav’, 44 Edelweiss employees participated in a Virtual Run in collaboration with Giving Tuesday India. A
Charity Concert was hosted where Edelweiss employees raised funds for cancer patients at Madat Foundation. Additionally, 292
employees also wrote letters to express their gratitude towards frontline workers.
Board Of Directors
Rashesh Shah is Chairman & Managing Director of the Edelweiss Group, one of India’s leading
diversified financial services conglomerates. With more than 30 years of experience in financial
services, Rashesh is particularly enthused about the transformational role that financial services
can play in translating India’s vast savings into investments. A regular commentator on macro-
economic policies, development matters, financial markets in the mainstream and financial
media, he serves on the Boards of various companies and public institutions. He has served as the
President of FICCI, which is India’s apex industry association and is also on the Board of Directors
for the Indian Institute of Foreign Trade (IIFT) as well as the Executive Committee of IPF (Indian
Police Foundation). Rashesh has also been a member of several government and regulatory
committees including the Insolvency Law Committee on IBC.
Rashesh Shah
Chairman & An MBA from the Indian Institute of Management, Ahmedabad, Rashesh also holds a Diploma in
Managing Director International Trade from the Indian Institute of Foreign Trade, New Delhi.
Venkatchalam Ramaswamy has three decades of experience in financial markets and has been
one of the driving forces in transforming what was once India’s first new-age boutique investment
bank to a leading independent financial services company. Amongst his responsibilities, he is
also the Chairman of Edelweiss’s Asset Management Business and has oversight over Edelweiss
Asset Reconstruction Company. Using his skills at building and maintaining large institutional
relationships, including International Pension Funds and Insurance companies, the Alternative
Asset Management business has become among the largest in India over the last 5 years.
An MBA from the University of Pittsburgh, USA, he also holds a Bachelor’s Degree in Electronics
Venkatchalam Ramaswamy Engineering.
Vice Chairman &
Executive Director
Himanshu Kaji has over three decades of diverse experience in the areas of business strategy, risk,
finance, regulatory frameworks, process re-engineering, technology, strategy and implementation
across the financial services space.
At Edelweiss, he oversees Finance, Governance, Legal, Technology and other shared services. He
is co-chairperson of the FICCI Capital Markets Committee, a member of the Secondary Market
Advisory Committee of SEBI and Trading Member Advisory Committee of the NSE. He is also a
member of various CII Committees viz; National Forum on NBFCs and HFCs, Financial Markets
Committee and Taskforce on FinTech.
In the past, he has served on the board of the Bombay Stock Exchange (BSE) and played a key role
Himanshu Kaji in the overhaul of the Exchange, contributing largely to the demutualisation and corporatisation of
Executive Director BSE. He has been a Corporate Advisor to eminent Indian and global financial services companies.
A Chartered Accountant, he holds a Post-Graduate Diploma in Securities Law.

64 | Board of Directors
Rujan Panjwani has over three decades of multifaceted domain expertise in the financial sector
spanning capital markets, asset management, insurance and others. Having spent the last 2 decades
with Edelweiss, he has played a key role in setting up several flagship businesses. Today, he is in
charge of the Insurance businesses within the Group – Edelweiss Tokio Life Insurance and Edelweiss
General Insurance, where besides being on their respective boards, he has strategic oversight of key
business decisions and the development of new business models. He also oversees the Corporate
Treasury and related functions. Additionally, he has helmed multiple functions across the Group
such as Human Resources and Leadership Development. He continues to play a fundamental role in
several key initiatives including strategy, business development and incubation of new businesses.
Rujan Panjwani Rujan holds a Bachelor’s degree in Electrical Engineering from the Manipal Institute of Technology.
Executive Director
Vidya Shah is the Executive Chairperson of EdelGive Foundation, an organisation set up by Edelweiss
Group in 2008, with the aim of funding and building the capacities of grassroots organisations
across India. With over 3 decades of rich industry experience, Vidya has channelled EdelGive’s
structure of giving to include both financial and non-financial support to over 150 grassroots
organisations, scaling their budgets, impact, and reach, exponentially. She also serves on the
boards of various prominent Civil Society Organisations such as Akshaya Patra Foundation, Agastya
International Foundation, Janaagraha Centre for Citizenship and Democracy, Centre for Social
Impact and Philanthropy at Ashoka University, Olympic Gold Quest, Mann Deshi Foundation and
the Indian School of Public Policy. She is also a member of the Governing Board of the Indian
Institute of Management, Udaipur. Additionally, Vidya is also on the board of several international
organisations including WINGS and Empower Families for Innovative Philanthropy. Most recently
Vidya Shah she has joined the Asia Gender Network, a group of members curated by AVPN, committed to
Non-Executive, Non-Independent changing the future for Asian women and girls.
Director & Chairperson,
Edelweiss ESG Council She spent the first 11 years of her career in the field of investment banking with companies like
ICICI, Peregrine and NM Rothschild. She joined Edelweiss in the year 2000 and was its Chief
Financial Officer until 2007. Vidya holds an MBA degree from the Indian Institute of Management,
Ahmedabad.
P. N. Venkatachalam has close to four decades of experience in the banking sector in India and
has also worked in the banking and finance verticals of the software industry. He joined State
Bank of India in 1967 and retired in 2004 as its Managing Director. He was a member of the
Interim Pension Fund Regulatory Authority of India.
He holds a Master’s degree in Economics from the University of Madras and is a certified
associate of the Indian Institute of Bankers.
P N Venkatachalam
Independent Director
66 | Board of Directors
Berjis Desai has rich experience, spanning over three decades. He retired as the Managing
Partner of J. Sagar Associates and is now an independent legal counsel engaged in private
client practice viz. taxation & estate planning, family arrangement and resolutions and wills.
He has varied experience in the legal field, with specialisation in corporate law, mergers
and acquisitions, derivatives, securities and financial laws, international business laws and
international commercial arbitration.
He holds a Master’s degree in Law from the University of Cambridge, United Kingdom.
Berjis Desai
Navtej S. Nandra has over three decades of global growth, transformation and governance
experience. He serves on various boards including Edelweiss group, Cadence, OakNorth Bank,
Center for Governance, Institutions and Organisations. He is a venture partner at Secocha and
a distinguished visiting fellow at the National University of Singapore’s Business School. In
the past, he was President of E*TRADE and Head of MSIM International for Morgan Stanley
Investment Management. He has handled individual contributor roles in various funds, Executive
Committee roles at Merrill Lynch across Wealth Management and Investment Banking and was
Partner at Booz Allen & Hamilton. He has also served on various boards including MS Huaxin
Fund Management and Nuveen Investments.
Navtej S. Nandra
He has a Post-Graduate �iploma from the Indian Institute of Management, Ahmedabad and
holds a �achelors degree in Commerce (Hons. course) from the University of Delhi.
Kunnasagaran Chinniah has more than three decades of experience in the financial sector. He
is presently a �irector of Changi Airport International, Keppel Infrastructure Trust, Azalea Asset
Management Pte. Ltd., Hindu Endowments Board and several other companies. Kunnasagaran
joined GIC Private Limited in 1989 and after having served the company in various capacities,
he retired as the Managing Director and led SI’s Infrastructure Group and Portfolio, Strategy and
Risk Group.
He holds a Bachelor’s degree in �lectrical �ngineering from the National University of Singapore
and a �aster’s degree in �usiness �dministration from the University of California. He is also a
Kunnasagaran Chinniah Chartered Financial Analyst from the Institute of Chartered Financial Analyst.

Biswamohan Mahapatra’s career spans over three decades. He retired as an �xecutive �irector
of the RBI on August 28, 2014. Post retirement, he was an Advisor to the RBI on the new bank
licensing process. He has represented RBI at various national and international forums and
chaired several RBI committees. He was also the Member Secretary to the Committee set up to
introduce a financial holding company structure in India and was also involved in the formulation
of Basel II and Basel III regulations. He also serves as an Independent Director on the boards of
various companies and was reappointed as the Non-Executive Chairman of National Payments
Corporation of India.
He holds a Master’s degree of �cience in �anagement from Arthur D. Little Management
Education Institute, Cambridge, Massachusetts, United States of America and a Master’s degree
Biswamohan Mahapatra
in Business Administration from the University of Delhi.
Ashok Kini is the ex-Managing Director of State Bank of India.

He holds a �achelor’s degree in �cience from Mysore University and a Master’s degree in English
literature from Madras Christian College, Chennai.
Ashok Kini
Dr. Ashima Goyal has over three decades of experience. She is a �rofessor at the Indira Gandhi
Institute of Development Research. She was appointed as a member of the RBI's Monetary Policy
Committee on October 6, 2020. She was also a part-time member of the Economic Advisory
Council to the Prime Minister. She is a specialist in the areas of open economy macroeconomics,
international finance, institutional economics and development economics. She has been a
visiting fellow at the Economic Growth Centre, Yale University, USA and a Fulbright Senior
$ Research Fellow at Claremont Graduate University, USA.
An MPhil, MA and BA in Economics from the University of Delhi, she also holds a PhD in Economics
Dr. Ashima Goyal from the University of Mumbai.
68 | Board of Directors Board Composition is as on March 31, 2021

Company Information
Board of Directors Bankers Major Cities:

Mr. Rashesh Shah Bank of India Domestic
Mr. Venkatchalam Ramaswamy Agra Lucknow
Axis Bank
Mr. Himanshu Kaji Ahmedabad Ludhiana
Central Bank of India Allahabad Madurai
Mr. Rujan Panjwani
Ms. Vidya Shah DCB Bank Amritsar Mangaluru
Mr. P. N. Venkatachalam Anand Meerut
HDFC Bank
Mr. Berjis Desai Aurangabad Mehsana
IDBI Bank
Mr. Navtej S. Nandra Bangalore Mumbai
IDFC Bank Bareilly Muzaffarpur
Mr. Kunnasagaran Chinniah
Citibank N.A. Bharuch Mysore
Mr. Biswamohan Mahapatra
Bhatinda Nagpur
Mr. Ashok Kini Karur Vysya Bank
Bhavnagar Nashik
Dr. Ashima Goyal Kotak Mahindra Bank Bhopal Navi Mumbai
Chief Financial Officer Punjab & Sind Bank Bhubaneshwar New Delhi
Mr. Sarju Simaria Bhuj Noida
South Indian Bank
Bikaner Panaji
Company Secretary State Bank of India Bilaspur Patiala
Mr. Tarun Khurana
ICICI Bank Calicut Patna
Statutory Auditors Union Bank of India Chandigarh Pondicherry
M/s. S. R. Batliboi & Co. LLP, Chennai Pune
Indian Bank
Chartered Accountants Coimbatore Raipur
IndusInd Bank Cuttack Rajahmundry
Registered Office
Yes Bank Dehradun Rajkot
Edelweiss House, Off C.S.T. Road,
Dhanbad Ranchi
Kalina, Mumbai - 400 098. Bank of Baroda
Ernakulam Rourkela
CIN: L99999MH1995PLC094641 Bank of Maharashtra Gorakhpur Salem
Tel: +91 22 4063 5445/58/4086 3535 Canara Bank Gurgaon Secunderabad
Email: efsl.shareholders@ Guwahati Shimla
RBL Bank
edelweissfin.com Gwalior Siliguri
Standard Chartered Bank
Website: www.edelweissfin.com Howrah Surat
The Federal Bank Hubli Thane
Registrar & Share Transfer Agent
Karnataka Bank Hyderabad Thiruvananthapuram
Link Intime India Pvt. Ltd.
Indore Thrissur
C-101, 247 Park, L.B.S. Marg, Punjab National Bank
Jabalpur Tirupati
Vikhroli (W) - 400 083. Catholic Syrian Bank Jaipur Tiruppur
Tel: +91 22 4918 6270
Equitas Small Finance Bank Jalandhar Trichy
Fax: +91 22 4918 6060 Jalgaon Tuticorin
DBS Bank
Email: rnt.helpdesk@linkintime.co.in Jammu Udaipur
Website: www. linkintime.co.in AU Small Finance Bank Jamnagar Vadodara
Bandhan Bank Jamshedpur Vapi
Edelweiss Presence Jhansi Varanasi
SBM Bank (India) Ltd.
300+ offices covering Jodhpur Vijayawada
Ujjivan Small Finance Bank Ltd
~2 million+ clients Kanpur Visakhapatnam
Barclays PLC Karnal Warangal
Kharagpur
International
Kochi
Kolhapur Dubai
Kolkata Hong Kong

Kollam London
Kota Mauritius
Kurnool New York
Singapore
All numbers and data are as of 31st March 2021 and includes EWM Edelweiss Annual Report 2020-21 | 69
Board's Report
To the Members of Edelweiss Financial Services Limited,

Your Directors hereby present the 26th Board’s Report on the business, operations and state of affairs
of the Company together with the audited financial statements for the year ended March 31, 2021:
FINANCIAL PERFORMANCE
I Consolidated Financial Performance:
(` in million)
Particulars 2020-21 2019-20
Total Income 1,08,488.50 96,026.29
Total Expenses 1,07,025.91 1,20,592.81
Profit/(Loss) before share in profit of associates and tax 1,462.59 (24,566.52)
Share in (Loss) of associates (6.35) -
Profit/(Loss) before tax 1,456.24 (24,566.52)
Tax expense (1,082.96) (4,128.80)
Net Profit/(Loss) for the year 2,539.20 (20,437.72)
Other Comprehensive Income/(Loss) (17.97) 4,726.42
Total Comprehensive Income/(Loss) 2,521.23 (15,711.30)
Profit/(Loss) for the year attributable to the
• Owners of the parent 2,653.36 (20,452.45)
• Non-controlling interests (114.16) 14.73
Other Comprehensive Income/(Loss) for the year
attributable to the
• Owners of the parent 11.88 4,241.54
Total Comprehensive Income/(Loss) for the year attributable
to the
• Owners of the parent 2,665.24 (16,210.91)
Earnings Per Share (`) (Face Value of ` 1 each)
Basic 2.98 (23.01)
Diluted 2.97 (23.01)
II. Standalone Financial Performance:

(` in million)
Total Income 17,218.73 2,455.40
Total Expenses 10,279.54 1,659.93
Profit before tax 6,939.19 795.47
Tax expenses (222.93) (30.32)
Profit for the year 7,162.12 825.79
Other Comprehensive Income/(Loss) 9.54 (0.47)
Total Comprehensive Income 7,171.66 825.32
Earnings Per Share (`) (Face Value of ` 1 each)
Basic 8.05 0.93
Diluted 8.01 0.92
70 | Board’s Report
SHARE CAPITAL the applicable Accounting Standards and forms
During the year under review, 13,89,075 Equity part of this Report.
Shares of the face value of ₹1 each were allotted
on exercise of the Stock Options granted under
SUBSIDIARIES & ASSOCIATES
During the year ended March 31, 2021, the
various Employee Stock Incentive Plans of the
Company sold its controlling stake in the wealth
Company.
management business to PAGAC Ecstasy Pte. Ltd.,
Consequently, as at March 31, 2021, the total with effect from March 26, 2021. Consequently,
paid-up share capital of the Company stood at Edelweiss Securities Limited, Edelweiss Finance
₹ 935.80 million divided into 93,57,98,077 Equity & Investments Limited, Edelweiss Broking
Shares of Face Value of ₹ 1 each. Limited, Edelweiss Custodial Services Limited,
Except Employee Stock Options and Stock ESL Securities Limited, Edelweiss Securities (Hong
Appreciations Rights (SAR), the Company has Kong) Private Limited, Edelweiss Investment
not issued any sweat equity to the employees Advisors Pte. Limited, Edelweiss Financial
of the Company. The disclosures with regard to Services Inc., Edelweiss Financial Services (UK)
the Employee Stock Options and SAR as required Limited and Edelweiss Securities (IFSC) Limited,
under the SEBI (Share Based Employee Benefits) ceased to be the subsidiaries and became the
Regulations, 2014 is available on the website of associates of the Company.
the Company at the link: www.edelweissfin.com.
During the year under review, EFSL International
DIVIDEND Limited was dissolved and ceased to be the
During the year under review, the Board declared subsidiary with effect from April 28, 2020. EC
an interim dividend of ` 0.90 per Equity Share of Global Limited (ECG) amalgamated with EC
the face value of ` 1 each. The interim dividend International Limited with effect from September
was paid to the Members of the Company during 1, 2020 and consequently ECG ceased to be the
the month of April, 2021. subsidiary of the Company.
The Board at its meeting held on June 11, 2021, On September 1, 2020, Edel Land Limited (ELL)
recommended a final dividend of ` 0.55 per acquired Everest Securities & Finance Limited
Equity Share of the face value of ` 1 each, subject (Everest), thus Everest became the subsidiary of
to the approval of Members at the forthcoming the Company. Further, Everest merged with ELL
Annual General Meeting (AGM). with effect from May 26, 2021. Edelweiss Finvest
Pursuant to Regulation 43A of the SEBI (Listing Limited (EFL) was merged with Edel Finance
Obligations & Disclosure Requirements) Company Limited with effect from April 9, 2021
Regulations, 2015 (the Listing Regulations), and consequently EFL ceased to be the subsidiary
the Dividend Distribution Policy is provided of the Company. Lichen Metals Private Limited
as Annexure I to this Report and is available ceased to be the subsidiary of ECap Equities
on the website of the Company at the link: Limited and, in turn of the Company with effect
www.edelweissfin.com. from March 31, 2021.
Edelweiss Capital Services Limited was
INFORMATION ON THE STATE OF incorporated on February 12, 2021 as the
AFFAIRS OF THE COMPANY subsidiary of the Company.
Information on the operational and financial
performance, amongst others including the The salient features of the financial statement
impact of COVID-19, is given in the Management of each of the subsidiaries and the associates
Discussion and Analysis Report, forming part of as required under the Act is provided in
this Report, and is in accordance with the Listing the financial statements in Form AOC-1.
Regulations. The financial statement of the subsidiaries are
available on the website of the Company at
CONSOLIDATED FINANCIAL the link: www.edelweissfin.com. Any Member
STATEMENTS interested in obtaining a copy of financial
The consolidated financial statements are statement of the subsidiaries may write to the
prepared in accordance with the Companies Act, Company Secretary at the Registered Office of
2013 and Rules framed thereunder (the Act) and the Company.

FINANCE Pursuant to the recommendations of the
During the year under review, the Company Nomination and Remuneration Committee,
issued Non-convertible Debentures (NCDs) the Board have re-appointed Mr. Rashesh
through public issue which are listed on BSE Shah as the Managing Director and
Limited. Your Company also raised money by Mr. Venkatchalam Ramaswamy as an
issue of NCDs on private placement basis. Executive Director for a further period of
5 years with effect from April 1, 2022,
LOANS, INVESTMENTS AND subject to the approval of the Members at
GUARANTEES the forthcoming AGM.
Particulars of loans given, investments made, (iii) Non-executive Directors
guarantees given and securities provided are Ms. Anita M. George (DIN: 00441131)
reported in the financial statements. resigned as Director of the Company with
effect from July 13, 2020. The Board places
RELATED PARTY TRANSACTIONS on record its appreciation of the services
All the Related Party Transactions entered by the rendered by Ms. George during her tenure
Company are on arm’s length and in the ordinary as Director of the Company.
course of business. The Company has not entered
into transactions with the Promoters, Directors (iv) Retirement by rotation
and Key Managerial Personnel, which may have Mr. Venkatchalam Ramaswamy (DIN:
potential conflict of interest with the Company. 00008509) and Mr. Himanshu Kaji (DIN:
00009438), retire by rotation at the
In accordance with the provisions of the Listing
forthcoming AGM and being eligible, have
Regulations, the Company has formulated the Related
offered themselves for re-appointment.
Party Transactions Policy, which is available on the
website of the Company at www.edelweissfin.com. (v) Key Managerial Personnel (KMP)
Mr. S. Ranganathan tendered his resignation
Particulars of contracts or arrangements with the
as the Chief Financial Officer of the Company
related parties as prescribed in Section 188 of
with effect from October 31, 2020 and Mr.
the Act is provided in the financial statements in
Sarju Simaria was appointed as the Chief
Form AOC-2. All the Related Party Transactions
Financial Officer of the Company with effect
as required under the applicable Accounting
from November 1, 2020. Mr. B. Renganathan
Standard are reported in the financial statements.
tendered his resignation as the Company
DIRECTORS AND KEY MANAGERIAL Secretary of the Company with effect from
PERSONNEL April 23, 2021 and Mr. Tarun Khurana was
appointed as the Company Secretary of the
(i) Independent Directors Company with effect from April 23, 2021.
In accordance with the provisions of Section
Some of the KMPs of the Company are
149 of the Act, the Independent Directors
also the KMPs of the subsidiaries and draw
have given a declaration that they meet the
remuneration from those subsidiaries.
criteria of independence as provided in the
said Section and also in terms of the Listing
NUMBER OF BOARD MEETINGS HELD
Regulations. In the opinion of the Board,
During the year ended March 31, 2021, the Board
the Independent Directors are persons of
met 6 times. The details of the Board meetings and
integrity and possess relevant expertise,
the attendance of the Directors at the meetings
experience and proficiency as per the Act.
are provided in the Corporate Governance Report,
(ii) Managing Director and Executive Directors which forms part of this Report.
Mr. Rujan Panjwani (DIN: 00237366) was REMUNERATION POLICY
re-appointed as an Executive Director of the The Company has formulated a Remuneration
Company at the AGM held on September Policy pursuant to Section 178 of the Act and
28, 2020, for a further period of 5 years the Listing Regulations. The Policy is provided as
effective from June 24, 2021. Annexure II to this Report.
EVALUATION OF THE PERFORMANCE OF AUDIT COMMITTEE
THE BOARD The Audit Committee comprises of the following
A Board Evaluation Policy (the Policy) for Independent Directors:
evaluating the performance of the Board, its
Mr. P. N. Venkatachalam (Chairman)
Committees, the Chairman, the Managing
Mr. Berjis Desai
Director, the Executive Directors, the Non-
executive Directors and the Independent
Mr. Kunnasagaran Chinniah.
Directors has been adopted by the Company.
Further details of the Audit Committee are
The Policy inter alia provides the criteria
provided in the Corporate Governance Report
for performance evaluation such as Board
forming part of this Report.
effectiveness, quality of discussion, contribution
at the meetings, business acumen, strategic WHISTLE BLOWER POLICY/ VIGIL
thinking, time commitment, relationship with the MECHANISM
stakeholders, corporate governance practices, The Company has adopted a Whistle Blower
review of the terms of reference of the Committees Policy to report genuine concerns/grievances.
and the contribution of the Committees to the The Policy is available on the website of the
Board in discharging its functions, etc. Company at the link: www.edelweissfin.com.
A separate meeting of the Independent Directors The Policy provides for adequate safeguards
was held wherein the performance of the Non- against the victimisation of the persons who
Independent Directors, performance of the Board use the vigil mechanism. The vigil mechanism is
as a whole (including the Committees) and also overseen by the Audit Committee.
that of the Chairman in terms of the provisions of
the Act, the Listing Regulations and the Guidance CORPORATE SOCIAL RESPONSIBILITY
Note issued by the Securities and Exchange Board COMMITTEE
of India in this regard was discussed. The Board has constituted a Corporate Social
Responsibility (CSR) Committee in accordance
INTERNAL FINANCIAL CONTROLS AND with the provisions of the Act. The CSR Committee
RISK MANAGEMENT comprises of:
The Company has in place adequate internal
Mr. Venkatchalam
financial controls with reference to financial
Ramaswamy (Chairman)
statements. The Company’s internal control Executive Directors
Mr. Himanshu Kaji
system is designed to ensure operational Mr. Rujan Panjwani
efficiency, protection and conservation of Mr. P. N. Venkatachalam Independent Director.
resources, accuracy and promptness in financial
reporting and compliance with the laws and The Company has made contributions under CSR
regulations. The internal control system is also mainly through its philanthropic arm EdelGive
supported by an internal audit process. Foundation, a wholly owned subsidiary. The
CSR Projects of the Company largely focuses on
M/s. JHS & Associates LLP, Chartered Accountants, the broad areas such as sustainable livelihood,
were appointed as Internal Auditors of your quality education, women empowerment etc.
Company for the financial year 2020-21.
Risk management is an integral part of the CSR REPORT
Company’s business strategy that seeks to The CSR Report on the activities undertaken
minimise adverse impact on business objectives during the year is provided as as Annexure
and capitalise on opportunities. The Risk III to this Report. The CSR Policy is available
Committee oversees the risk management on the website of the Company at the link:
framework of the Company through regular and www.edelweissfin.com.
proactive intervention by identifying risks and
formulating mitigation plans. Further details are AUDITORS
provided in the Management Discussion and At the 23rd AGM held on July 26, 2018, the Members
Analysis Section forming part of this Report. had appointed M/s. S. R. Batliboi & Co. LLP, Chartered

Accountants (Firm Registration No. 301003E/ iii. The capital investment on energy
E300005), as the Auditors of the Company for a conservation equipments – Nil
term of 5 years to hold office until the conclusion
of the 28th AGM to be held in the year 2023. The B. Technology absorption
Auditors’ Report on the financial statements for the i. The efforts made towards technology
year ended March 31, 2021 is unmodified and is absorption: The Company extensively
annexed to the financial statements. uses the information technology in
its operations and has absorbed the
SECRETARIAL AUDIT REPORT technology required in this regard.
M/s. BNP & Associates, Company Secretaries,
ii. The benefits derived like product
were appointed as the Secretarial Auditors
improvement, cost reduction, product
to conduct the Secretarial Audit for the
development or import substitution:
financial year ended March 31, 2021. The
The Company has leveraged the
Report of the Secretarial Auditors is provided
technology to reach out to its customer
as Annexure IV to this Report. The Secretarial
in the difficult times of pandemic.
Audit Report does not contain any qualification,
reservation, adverse remarks or disclaimer. iii. In case of imported technology
(imported during the last three years
As required under the Listing Regulations, the
reckoned from the beginning of the
Secretarial Audit Report of Edelweiss Tokio Life
financial year):
Insurance Company Limited, the Material Unlisted
Subsidiary of the Company, for the year ended March (a) the details of technology
31, 2021 forms part of this Report. The Secretarial imported: Not Applicable
Audit Report does not contain any qualification, (b) the year of import: Not Applicable
reservation, adverse remarks or disclaimer. (c) whether the technology has been
fully absorbed: Not Applicable
PREVENTION OF SEXUAL HARASSMENT (d) if not fully absorbed, areas
OF WOMEN AT WORKPLACE where absorption has not taken
The Company has a Policy on Prevention of place, and the reasons thereof:
Sexual Harassment of Women at Workplace. Not Applicable
No cases were reported during the year under
iv. The expenditure incurred on Research
review. There were no complaints pending as
and Development: Not Applicable.
on March 31, 2021. The Company has complied
with the provisions relating to the constitution of C. Foreign exchange earnings and outgo
Internal Complaints Committee under the Sexual During the year under review, the Company
Harassment of Women at Workplace (Prevention, earned foreign exchange of ₹ 550.16 million
Prohibition and Redressal) Act, 2013. (previous year: ₹ 196.90 million) and there
was outgo of foreign exchange of ₹ 16.74
CONSERVATION OF ENERGY,
million (previous year: ₹ 29.40 million).
TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS/OUTGO OTHER DISCLOSURES
A. Conservation of energy • There are no significant material changes
i. The steps taken or impact on and commitments affecting the financial
conservation of energy: The operations position of the Company that occured
of the Company are not energy between the end of financial year and the
intensive. However, adequate measures date of this Report.
have been taken for conservation of • There has been no change in the nature of
energy, wherever possible. business of the Company.
ii. The steps taken by the Company for • There was no revision in the financial
utilising alternate sources of energy: statements of the Company.
Though the operations of the Company • There was no application made or proceeding
are not energy intensive, the Company pending against the Company under the
explores alternative sources of energy, Insolvency and Bankruptcy Code, 2016. There
as and when the necessity arises. was no instance of onetime settlement with
any Bank/Financial Institution in respect of loan A Business Responsibility Report pursuant to the
taken by the Company. Listing Regulations is provided as Annexure VI to
• No significant or material orders were this Report.
passed by the Regulators or Courts or
Tribunals which impact the going concern DIRECTORS’ RESPONSIBILITY STATEMENT
status and Company’s operations in future. Pursuant to Section 134 of the Act, the Directors
confirm that:
• No fraud has been reported by the Auditors
i) in the preparation of the annual accounts,
to the Audit Committee and the Board.
the applicable accounting standards have
• Disclosure pertaining to maintenance of been followed;
cost records as specified under the Act is
ii) such accounting policies have been
not applicable to the Company.
selected and applied them consistently
• The Company has not issued equity shares and made judgments and estimates that
with differential voting rights as to dividend, are reasonable and prudent so as to give
voting or otherwise. a true and fair view of the state of affairs
• The Company has not accepted any deposits of the Company as at March 31, 2021 and
covered under Chapter V of the Act. the profits of the Company for the financial
• The Company has complied with the year ended on that date;
applicable Secretarial Standards issued by iii) proper and sufficient care had been
the Institute of Company Secretaries of India. taken for the maintenance of adequate
accounting records in accordance with the
ANNUAL RETURN
provisions of the Act for safeguarding the
Pursuant to Sections 92 and 134 of the Act, the
assets of the Company and for preventing
Annual Return as at March 31, 2021 in Form MGT-
and detecting fraud and other irregularities;
7, is available on the website of the Company at
the link: www.edelweissfin.com. iv) the annual accounts have been prepared on
a going concern basis;
DISCLOSURE UNDER SECTION 197 OF v) internal financial controls have been laid
THE ACT down and the same are adequate and were
In accordance with the provisions of Rule 5 of the operating effectively; and
Companies (Appointment and Remuneration of vi) proper systems had been devised to ensure
Managerial Personnel) Rules, 2014, the particulars compliance with the provisions of all
of the employees are set out in the annexure to applicable laws and that such systems were
this Report. In terms of the provisions of Section adequate and operating effectively.
136 of the Act, the Report is being sent to the
Members of the Company excluding the annexure. ACKNOWLEDGEMENTS
Any Member interested in obtaining a copy of the The Board acknowledges the valuable guidance
annexure may write to the Company Secretary at and continued support extended by the Securities
the Registered Office of the Company. and Exchange Board of India, the Reserve Bank
of India, Stock Exchanges, Insurance Regulatory
Further, disclosures on managerial remuneration
and Development Authority of India, Ministry of
as required under Section 197 read with Rule 5 of
Corporate Affairs, other government authorities,
the Companies (Appointment and Remuneration Banks and other stakeholders. Your Directors
of Managerial Personnel) Rules, 2014 are would also like to take this opportunity to express
provided as Annexure V to this Report. their appreciation for the dedicated efforts of the
CORPORATE GOVERNANCE employees of the Company.
Pursuant to the Listing Regulations, the Report For and on behalf of the Board
on Corporate Governance together with the Edelweiss Financial Services Limited
certificate issued by M/s. BNP & Associates,
Company Secretaries, on compliance with Rashesh Shah
the conditions of Corporate Governance as Chairman & Managing Director
stipulated in the Listing Regulations forms part DIN: 00008322
of this Report.
Mumbai, June 11, 2021

Management Discussion & Analysis
MACRO ECONOMY: REVIEW AND OUTLOOK

Vladimir Lenin once said, “There are decades when nothing happens and there are weeks where decades
happen”. The year FY21 had many such weeks. It was a year which witnessed one of the worst slowdowns in real
GDP, but ironically one of the best for equity markets and corporate earnings. We witnessed dooms day scenario,
recession, recovery, and a bull run – all in 12 months.
The COVID-19 pandemic has brought out the human spirit to adapt and survive even the most challenging of
times. In-fact the crisis has compelled fiscal policy to be used more aggressively in western world and elsewhere.
This along with a large monetary support resulted in the global monetary stance being very supportive to averting
a prolonged slowdown.
India too mimicked the global response. While our lockdowns were undoubtedly more stringent, the recovery in
the unlocking phase has been robust with strong policy response from both government as well as RBI. Central
government has loosened its fiscal strings by expanding fiscal deficit by ~5% of GDP and by increasing spending
~28% YoY. While initially during lockdown spending was more towards providing relief and credit guarantee to
MSMEs, it has pivoted towards capex in the unlocking phase (H2FY21).
Further, RBI’s support has also been critical during the pandemic. RBI has generally kept system awash with
excess liquidity and brought down short-term rates leading to significant vibrancy in bond market. AAA corporate
bond spreads are close to all time low now. RBI has also announced a series of liquidity, credit and regulatory
measures on May 05, 2021 in response to the second wave/lockdowns to alleviate the impact on economy.
Going ahead, while the economy is recovering fast with projected GDP growth in FY22 around 9% (compared to
degrowth of around 7.3% in FY21), the second COVID wave or the possibility of a third wave does pose near term
challenges and its impact is yet to pan out fully. However, global recovery remains strong and should result in spill
overs to India through trade, prices, and flows channel. Macro-environment thus augurs well for India’s business
cycle as well as financial sector.
Overall Outlook
While near-term outlook is clouded owing to uncertainities of the pandemic, we believe that the medium-term
looks brighter due to vaccination drive (largest in the world) being underway, global recovery likely to remain
strong, India’s own macro vulnerabilities remaining low and domestic policy stance being most accommodative
in a decade.
INDUSTRY STRUCTURE AND DEVELOPMENTS

NBFC Industry
While the initial lockdown affected functioning of the NBFCs, post festive season many NBFCs saw an
improvement in their collection efficiency and restructuring requests were limited. They finished FY21 with first
post COVID quarter of significant disbursement growth, some unwind in credit costs due to seasonal recoveries
and significantly stronger outlook on growth/credit costs and are favourably placed for FY22. However, liability
side challenges still persist for most NBFCs.
Retail Finance
Notwithstanding a subdued performance in FY21, India has one of the lowest credit penetration among larger
economies and retail credit presents a large growth opportunity driven by long-term trends in democratisation of
credit, rising household incomes and increased consumption.
76 | Management Discussion & Analysis Report

Retail finance industry has undergone two phases in FY21. First half saw industry dealing with the repercussions
of lockdown and its impact on economy where preserving books became a necessity. Second half witnessed
rebuilding of business. Lenders adopted a cautious approach in first half of year with disbursals to targeted
customers, predominantly under ECLGS scheme launched by government. For large housing finance companies,
margin benefits were limited by a competitive loan pricing environment, but robust mortgage and SME segment
loan growth will continue into FY22.
Asset Reconstruction Industry

The (ARC) industry has come a long way since inception and evolved from a recovery oriented agency mechanism
to an attractive investment business for revival of financially broken but potentially viable business entities to
earn reasonable risk adjusted return.
During FY21 though the supply in terms of NPAs was not a constraint, banks were not enthusiastic to sell under
SR structure. For providing relief to pandemic hit businesses IBC was suspended in June 2020, eventually upto
March 2021, making unavailable the NCLT route to the industry.
In the budget for FY22, the Finance Minister announced setting up of asset reconstruction companies (ARCs) to
take over bad assets from banks. RBI has announced setting up of a task force to review the regulatory framework
governing ARCs and further action is awaited.
During FY21, top six ARCs in India acquired loans at an acquisition price (SRs issued) of ~`85 billion with their own
investment of ~`20 billion and had an AuM of ~`863 billion as on March 31, 2021. Their recoveries were ~`125
billion with redemptions of ~`92 billion during the year.
Wealth Management
Financialisation of assets, democratisation of wealth, Indian demographics and increasing sophistication are
some of the key emerging trends in the Indian Wealth Management industry.
With the investors increasingly becoming more sophisticated coupled with low interest rates and increased
investment choices, they are willing to explore the unexplored. Simultaneously, UHNIs and Affluent clients are
keen to look at advanced investment strategies and turn towards more personalised investment advisory services
in their quest for higher yields which augurs well for the industry.
Capital Markets
After a brutal end to FY20, capital markets had a very strong FY21. Nifty returned more than 70% in FY21, one of
the highest in a decade, because of strong global liquidity leading to ~USD 37 billion inflow in FY21, (last six years
combined: ~USD 30 billion) and earnings revival despite a contraction in Nominal GDP.
For Debt Capital Markets, during the pandemic affected year RBI reduced repo rate to a low of 4% and introduced
measures to infuse liquidity. As a result, overall issuances of debt was not impacted much in FY21. There was a
rise of ~32% in volume to ~`6.1 trillion in the private placement segment in FY21 while public issuance of bonds
fell to ~`105 billion in FY21 compared to ~`150 billion in FY20 (Source: Prime Database).
Asset Management
Asset management industry in India offers mutual funds and alternative investment funds (AIFs). Mutual Funds’
AuM recorded a robust growth of ~44% to stand at `32.17 trillion as on March 31, 2021 compared to `22.26
trillion as on March 31, 2020 due to a stellar recovery in the markets (Source: AMFI reports).
Alternative assets funds that focus on providing yields to investors are becoming mainstream in India. There
is an increasing demand for such funds from offshore institutional investors like pension funds and insurance
companies. Similarly, HNI investors and family offices in India, are also searching for yields as returns on traditional
debt products in India have reduced. Alternative Funds in the structured credit, stressed assets and real estate
credit space in India saw inflows of ~USD 3.2 billion during the year and their AuM stands at ~USD 52 billion at
the end of this year in India.

Life Insurance
With the impact of pandemic, insurers are grappling at many fronts. While the importance of life insurance
amongst consumers has indeed risen, it has not necessarily converted into a purchase resulting in a muted
growth for the industry.
The penetration of Life Insurance sector in India currently stands at 2.82% and per capita Insurance density of
only USD 58 while global Life Insurance penetration stands at 3.35% with density of USD 379 (source: IRDAI
Annual Report 2020). Individual Annualised Premium Equivalent (APE) growth of the industry was lower at 3%
in FY21 compared to 6% in FY20 with APE of ~`757 billion in FY21 compared to ~`735 billion in FY20. The private
sector life insurers recorded a growth of ~8% and their Individual APE market share increased marginally from
~57% to ~60% YoY (source: Life Insurance Council). We believe that the structural story for insurance remains
intact and may receive a COVID-driven boost in focusing customer needs on protection.
General Insurance
General Insurance Industry continued its two decadal track record of growth with an increase of over 5% in
FY21 YoY. The growth was driven by Health segment (13%), Fire segment (28%) while Motor segment marginally
declined by 2%.
The year also witnessed high velocity of regulatory changes, particularly, interventions in the Health segment,
in view of the ongoing pandemic to focus on ensuring comprehensive health insurance coverage and providing
prompt service to customers battling COVID related expenses.
The pandemic also caused a largescale transition to ‘work from home’ for most industries including insurance.
This was an accelerator for the digital transformation in the industry. The regulator allowed digital issuance,
digital policies and digital communication. The progressive consumer friendly changes along with new players
leveraging a tech-led model augur well for the industry and customers.
EDELWEISS OVERVIEW
Edelweiss was founded in November 1995 with an aspiration to building a quality organisation which would
be guided by our values and beliefs and to create something for the long-haul. 25 years later, Edelweiss is one
of India’s largest financial services firms, helping over 2 million customers across the country accomplish their
dreams and aspirations.
EDELWEISS STRATEGY
Edelweiss’s growth over last 25 years is a result of persistent focus on building capabilities to service diverse
customer segments with products customised to suit their needs, building leadership pool, developing culture
and agility to adapt to the ever-changing environment. At the broader level, while our strategy continues to be
to improve or build sustainability, governance, management quality, scalability and profitability, we will also
see some new paradigms of focus – process and institutionalisation, tech-oriented thinking, independent and
self-reliant businesses to build Edelweiss for the next 25 years.
EFSL FINANCIAL PERFORMANCE HIGHLIGHTS

During our journey so far, we have experienced various growth phases and downturn cycles. However, FY21 has
been a journey of resilience, determination and persistency for Edelweiss. Even during such trying times as in
this year, it is this determination and hard work that helped us complete the Edelweiss – PAG partnership in our
wealth management business as also bring us back to profitable growth. As we gain scale, we are grateful to all
stakeholders for helping us build this robust platform.

CONSOLIDATED RESULT – FY21
A summary of consolidated FY21 financial performance of EFSL and its comparison with FY20 performance is as
under:
• Total Revenue `108.49 billion (`96.03 billion for FY20), up 13%
• Profit/(Loss) post Tax and Minority `2.65 billion {`(20.45) billion for FY20}
• Group Net Worth `76.77 billion (`72.07 billion for FY20), up 7% (includes minority interest)
• Diluted EPS `2.97 {`(23.01) for FY20} (FV `1)
• Book Value per Share `73.83 (`68.90 at the end of FY20) (FV `1)
The group Net Worth is `85.42 billion as on March 31, 2021, including the amount of equity convertible
instruments (CCDs). However, it excludes Edelweiss Wealth Management equity as it ceased to be our subsidiary
with effect from March 26, 2021 consequent upon stake sale to PAG as discussed later in this Report.
Board of Directors have recommended a Final Dividend of `0.55 per share (FV `1) subject to the approval of the
members at the ensuing AGM. Total Dividend for the year stands at `1.45 per share.
FINANCIAL HIGHLIGHTS
Income
Total revenue for FY21 was `108.49 billion compared to `96.03 billion for FY20, a growth of 13%. Out of this,
interest income, which constitutes the largest component of the revenues, was `40.34 billion for FY21 (`59.02
billion for FY20), down 32%. The drop in interest income is commensurate with the degrowth of our credit book
during the year in line with our strategy to move credit business to a capital light business model.
Fee and commission revenue was lower at `16.54 billion for FY21 (`20.99 billion for FY20) because of lower
activity levels during the COVID-19 affected year despite scaling up of various advisory businesses. However, fee
income for Q4FY21 is already above the pre COVID levels.
The Net Revenue for FY21 was `70.14 billion (`48.10 billion for FY20), up 46% mainly due to higher revenues on
the back of higher Net Gain on fair value changes and higher Other Income.
Insurance business continued to grow with a net premium of `13.25 billion for FY21 (`10.57 billion for FY20), a
growth of 25%.
Our long-term strategy of having presence in large and emerging opportunities in financial services in India has
helped us diversify our earnings as well as withstand volatility in the markets.
Expenses
Total costs for FY21 was `107.03 billion (`120.59 billion in FY20), down 11% as a result of our conscious efforts to
rationalise costs during the year. Within this, we achieved overall fixed cost reduction of ~23% in FY21 over FY20
cost base.
Our largest component of costs, Finance cost, was lower at `38.34 billion for FY21 compared to `47.93 billion in
FY20 due to lower borrowings in the year in line with the degrowth in our credit book. The cost of funding was
only marginally lower in FY21, despite RBI reducing rates in the pandemic affected year, due to risk aversion of
lenders towards NBFCs. At the end of FY21, borrowings were lower at `284.36 billion compared to `366.57 billion
at the end of the previous year, degrowth of 22% consequent upon reduction in our credit book. During the year
we continued to maintain adequate level of available liquidity of around 20% of our borrowings in view of volatile
environment though it resulted in a negative carry as in the previous year.

Employee expenses increased by 15% in FY21 though fixed people cost declined by ~18% driven by process
efficiencies. We continued to rationalise our work force keeping up with the new normal in the aftermath of the
pandemic with our year end head count being ~8,518.
Operating costs fell by 29% in FY21, despite continued investment in scaling up our younger retail businesses, as
a result of focus on improving efficiency.
As regards impairment cost on financial instruments and change in valuation of credit impaired loans, despite
following our prudent and conservative approach of recognising these costs, we were able to contain these costs
to `20.74 billion only for FY21, a significant drop of 42% YoY.
Thus, as a result of active cost management and focus on improving productivity and efficiency during FY21, we
were able to reduce our total costs 11% YoY.
PROFIT AFTER TAX (PAT)

Profit/(Loss) post Tax and Minority for FY21 was `2.65 billion compared to `(20.45) billion for FY20. The
improvement was mainly due to 13% growth in revenues, sale of stake in our Wealth Management business and
11% decline in expenses in FY21 YoY. At the same time, lower business opportunities in the pandemic affected
year along with the cost of maintaining adequate available liquidity continued to impact our operations. While
the impact of the second COVID-19 wave or the possibility of a third wave is uncertain at this moment, we are
hopeful that we will continue to improve the results of our business operations in FY22.
Business-wise Analysis of Profitability

We are a diversified company across ten key entities as under:
Edelweiss Financial Services Ltd (EFSL)
NBFC Housing Mutual Alterna�ves ARC Life General Insurance Wealth

Finance Fund Insurance Insurance Broking Mgt
ECL
Finance Ltd
(ECLF) Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss
Housing Asset Alternate Asset Tokio Life General Gallagher Securi�es
Finance Ltd Management Asset Reconstuc�on Insurance Insurance Insurance Ltd (ESL)
Edelweiss (EHFL) Ltd (EAML) Advisors Company Company Company Brokers
Retail Ltd (EAAA) Ltd (EARC) Ltd (ETLI) Ltd (EGICL) Limited
Finance Ltd (EGIBL)
(ERFL)

The distribution of earnings among these businesses for the year FY21 is as under:
` in million
Businesses Edelweiss Holding Profit after Tax*
NBFC 100% 291
Housing Finance 100% 37
Mutual Fund 100% 48
Alternatives Asset Management 100% 138
Asset Reconstruction 60% 1,856
Insurance Broking 70% 146
Wealth Management 38.5% 2,451
BMU & Corporate 550
Total Ex-Insurance 5,517
Life Insurance 51% (2,067)
General Insurance 100% (910)
Total Consolidated 2,539
*The Profit after Tax numbers are including Minority Interest and are after inter-company eliminations within respective businesses.
Potential investor stake of 15-20% in NBFC after CCD conversion; we have an option to increase our stake in Wealth Management to ~44%.
Our businesses have been resilient in these testing times of the

pandemic. Customer assets have grown 35% YoY to stand at `2.81 COVID-19 and Edelweiss:
trillion at the end of FY21 demonstrating the continued trust of our • Digital operating model driving
customers. While the Alternatives, Asset Reconstruction and Wealth business growth
Management business have maintained their industry leadership, our
Mutual Fund, Retail Credit are growing franchisees. The Life Insurance • Despite trying times, partnership
and digitally powered General Insurance business continued to grow with PAG for EWM inked out
and gain market share, while recoveries in ARC continue to be strong. • Proactive liquidity management
All our businesses are well-capitalised, with operationally independent despite volatility
and robust platforms and are poised for growth. As planned, our focus
for FY21 has been on consolidation, fortification and strengthening • People practices swiftly adapted to
with three clear priorities. We concluded the stake sale in our Wealth the new normal of working from
Management business, at a valuation of `44 billion – an endorsement home with the help of technology
of the quality of businesses we have built and the value we have • We continue to prioritise safety
created. We continued the transition to a capital light retail credit and well-being of our employees
model with a focus on Housing and SME businesses. We have scaled through varied measures
down our wholesale lending book significantly over the last two years
and we plan to further bring it down in FY23. We now have a stronger • Edelweiss culture at the forefront
balance sheet with robust equity, lower debt and ample liquidity. – high levels of adaptability,
resilience, ownership and
commitment to serve the need of
customers

Balance Sheet
We continued to strengthen and deleverage balance sheet during the year. Effective Balance Sheet size (Borrowings
plus Net Worth) at the end of FY21 was `361.13 billion compared to `438.64 billion at the end of FY20. Total Net
Worth including minority interest was higher at `76.77 billion as on March 31, 2021 compared to `72.07 billion
as on March 31, 2020 due to Edelweiss Wealth Management (EWM) stake sale. Borrowings as on March 31, 2021
were lower at `284.36 billion (`366.57 billion as on March 31, 2020) reflecting the degrowth in credit book.
Including the amount of equity convertible instruments (CCDs) in our networth and excluding the liquid treasury
assets that we hold for liquidity management, the Net Gearing Ratio improves to 2.5 times as on March 31, 2021
compared to 3.5 times as on March 31, 2020.
Capital Raise during FY21

Edelweiss and PAG, the leading Asia-focused investment group, announced an investment by PAG in EWM. This
partnership will result in unlocking long-term value for shareholders, strengthening equity base and accelerating
business growth. PAG has made an investment of ~`23.66 billion in EWM, including primary and secondary
investment in March 2021.
Earlier, CDPQ had also invested in the equity of our main NBFC ECL Finance Ltd and EARC. Tokio Marine continues
to be our strategic partner in life insurance business. With this, we now have self-reliant businesses with strategic
partners, and which are well capitalised for future growth.
ANALYSIS OF SIGNIFICANT CHANGES IN FINANCIAL RATIOS

As per the SEBI Listing Obligations and Disclosure Requirements (LODR), we give below additional information in
respect of financial parameters that are applicable to our company.
1. D
etails of significant changes (i.e. change of 25% or more as compared to the immediately previous financial
year) in key financial ratios:
(a) Debt Equity Ratio
The Debt Equity Ratio as on March 31, 2021 stood at 3.7 times compared to 5.1 times as
on March 31, 2020, an improvement of 27%. This was mainly due to higher networth and
lower borrowings of `284.36 billion as on March 31, 2021 compared to `366.57 billion as on
March 31, 2020. At the same time, Net Debt Equity Ratio as mentioned above as on March
31, 2021 stood at 2.5 times compared to 3.5 times a year ago.
(b) Profit before Tax Margin (%)
The Profit before Tax Margin for FY21 was 1.3% compared to being negative in FY20 due to
the loss incurred during that year.
(c) Net Profit Margin (%)

The Profit after Tax Margin for FY21 was 2.4% compared to being negative for FY20 due to
return to profitability as explained above.
Other parameters, namely Debtors Turnover, Inventory Turnover, Interest Coverage Ratio and Current Ratio, are
not applicable to our company.
2. Details of any changes in Return on Net Worth as compared to the immediately previous financial year:
Return on Net Worth, i.e. Return on Equity (RoE), on consolidated basis for FY21 was 4.4% compared to being
negative for FY20. RoE has bounced back to positive territory due to company returning to net profit as explained
above.

BUSINESS SEGMENT-WISE PERFORMANCE
Brief highlights of business segment-wise performance in FY21 are as under:
CREDIT BUSINESS
Our Credit business is built on a mix of diversified and scalable
businesses with focus on scaling up retail credit besides having a Credit Business
smaller mid-corporate credit book.
• Grow the retail book through a
Total credit book stands at `140.59 billion at the end of FY21 capital light model (Co-lending,
compared to `210.02 billion at the end of FY20, a degrowth on-lending, co-origination and
of 33%. The book comprises of retail credit `68.13 billion and securitisation) with focus on
corporate credit `72.46 billion and excludes SRs held. The Net enhancing our digital and data
Interest Income representing the excess of interest income capabilities
over interest expense for FY21 for our major NBFCs/HFC was
• Continue to reduce the wholesale
at `650.69 million (ECLF), `833.85 million (ERFL) and `1,133.83
book and ensure release of equity
million (EHFL).
• Maintain liquidity even through
The asset quality of the credit book suffered some slippages
stressed scenarios
in the aftermath of the COVID-19 pandemic with Net NPLs at
4.46% as on March 31, 2021 compared to 4.10% a year ago. • Improve capital adequacy and
The specific Provision Coverage Ratio (PCR) on Gross NPLs was reduce debt-equity ratio
higher at 47% at the end of FY21 compared to 23% at the end
of FY20. Total Provision Cover including the expected credit loss
provision on Stage I and II assets is flat at 103% at the end of this year compared to 104% at the end of FY20.
CORPORATE CREDIT BUSINESS

Corporate credit business offers products like cash flow-based loans and structured collateralised credit to mid
corporates and real estate finance to developers. In line with our stated strategy of reducing the credit book
in ECL Finance and move this business to the fund, the total book size has been reduced to `72.46 billion in
March 2021 compared to `100.20 billion in March 2020 and `180.55 billion in March 2019. We will continue to
systematically bring down the corporate credit book in ECL Finance and release equity capital.
RETAIL CREDIT BUSINESS

As a part of our long-term strategy of diversification and to focus on large, scalable retail credit opportunities in
India, we entered this business in 2011. The retail credit business offers retail mortgages, MSME finance and Agri
& Rural finance.
Retail Mortgage Finance

Retail mortgage finance offers housing finance, small ticket housing loans, retail construction finance and loans
against property through our HFC Edelweiss Housing Finance Limited (EHFL). EHFL had a peak disbursal track
record of `30 billion in FY19 despite the IL&FS crisis in September 2018. Given the liquidity crunch thereafter
which got accentuated by the pandemic, EHFL adopted a conservative approach focusing on liquidity management
rather than asset growth during FY20 and first half of FY21.
In the hard times of COVID, we put in all possible efforts to demonstrate the value of customer centricity through
various initiatives. Recovery efforts also led to extensive communication with almost all the customers which
aided in portfolio management. Online channels for EMI payments were introduced to enable easier payments.
In the latter half of FY21, intensity was shifted from customer reachability to proactive engagement using
Analytics based bounce prediction models and enhancing collection efforts. With the improvement in business
environment, EHFL ramped up disbursals in Q4FY21. At the same time, we also pursued securitisation as an
alternative source of funds with EHFL securitising assets of over `9 billion in FY21.

EHFL also achieved a significant progress in Technology and Analytics in FY21. Digital solutions for various
underwriting stages were launched along with automation of critical dashboards such as risk, collection and legal.
We also progressed in our digital transformation journey by adopting the cloud and embracing an Application
Program Interface (API) first approach to be ready for future growth.
MSME Finance
MSME finance business caters to the underserved and highly scalable MSME market. The business has a book
size of ~`14.10 billion at the end of FY21. Including other business loans, the book size is `16.66 billion at the
end of FY21.
FY21 began with the pandemic induced lockdown, which impacted functioning of MSMEs. While it also impacted
our lending to this segment, the workforce quickly oriented itself to drive collection efficiency and help alleviate
customer pain points by reaching out to them.
During the year, we invested heavily into building capabilities, supporting our clients and navigating the market
uncertainties with minimal impact on our books by focusing on:
• Business processes transformation for better efficiency and customer centricity
• Digital transformation including building of a new lending platform using a combination of low code, agile and
platform thinking
• Data analytics and building algorithms for better risk and collection modeling
• Adopting technology for secure connectivity
• Supporting our clients through ECLGS scheme loans for re-booting their businesses
• Being an early adopter of policies like co-origination/co-lending with banks
COVID-19 crisis has had a significant impact on the credit market. Businesses with strong fundamentals and
agility will move ahead of the curve as the business outlook improves. This reflects in the good credit quality
that our business has been able to sustain through the crisis. Going forward, our business will leverage data and
technology even more intensely along with an asset light model to build a strong and profitable book.
Total Retail Credit Portfolio

Retail credit business (retail mortgages, SME and rural finance) has a total book of `63.26 billion at the end of
FY21. In addition, Agri credit and other retail loans aggregate `4.87 billion at the end of FY21. Taken together,
total retail credit portfolio stands at `68.13 billion compared to `109.82 billion at the end of FY20, a degrowth
of 38%.
Retail credit accounted for 48% of total credit at the end of
FY21 compared to 52% a year ago and is poised to increase its
Asset Management
share further going forward.
Business:
ASSET MANAGEMENT BUSINESS • Alternatives AM: Dominant yield
The Asset Management business provides clients with a focused alternatives platform
comprehensive bouquet of investment solutions including • Alternatives AuMs have grown at
bespoke alternative strategies and mutual funds. over 60% CAGR in last five years to
~`300 billion
Alternatives
AuM of our alternative assets funds including performing • Mutual Fund net equity inflows
credit, stressed assets, real estate credit and infrastructure of `36 billion in FY21 compared
yield have grown by nearly 40% to over USD4 billion in FY21 and to outflows of `550 billion for the
we continue to be a leading alternative asset manager in the industry
country. During the year, despite the challenging environment,
we announced the final close of ESOF III Fund, our performing

corporate credit fund, at ~USD900 million and EIYP I Fund, which focuses on buying operating infrastructure
assets, at ~USD450 million. The ESOF III strategy has received investments from marquee investors like the
Canadian Ontario Teachers’ Pension Plan Board, Florida’s State Board of Administration, Swedish Pension Fund
- AP4, among others.
Given the strength and depth of our investment teams, we have managed to deploy ~USD 525 million across
strategies in FY21.
Mutual Funds
Mutual Fund business manages an AuM of ~`550 billion under 38 schemes across Equity, Debt and Liquid
categories at the end of FY21, a growth of 127% over the AuM of ~`242 billion a year ago. The business has
improved its ranking to 15th from being 17th in FY20 and caters to ~420,000 unique investors, compared to
~275,000 at the end of FY20.
ASSET RECONSTRUCTION BUSINESS

Asset Reconstruction business comprises Edelweiss Asset Reconstruction Company (EARC) and turnaround
advisory services.
EARC is the largest ARC in the country which manages stressed assets with AuM of ~`408 billion. EARC adopts
multi-pronged strategy for resolution of stressed assets with primary focus to ‘Revive’ or ‘Reconstruct’ operating
assets with last mile funding needs. Based on asset specific complexities, settlement/enforcement of security
interest/resolution through IBC are also adopted with an aim to optimise stakeholder benefits.
Our acquisitions continue to generally target operating assets which can be revived. During the year we invested
`4.7 billion. The foray into the retail segment has progressed well and half of the investment during the year were
in retail segment. Retail would be a focus area in the coming years. EARC has been able to maintain its market
leadership with ~41% of market share. We have partnered with over 65 banks/NBFCs backed by our expertise
on resolution of stressed assets. EARC has been able to recover more than `54 billion in FY21 and total of ~`285
billion since inception.
INSURANCE BUSINESS
Edelweiss expanded its addressable retail markets by launching life insurance business during 2011. We completed
our insurance offering by entering general insurance business in Q4FY18.
LIFE INSURANCE
Edelweiss Tokio Life Insurance (ETLI) is a joint venture between EFSL (51%) and Tokio Marine Holdings Inc (49%),
one of the oldest and largest insurance companies in Japan. It was launched in July 2011 with a capital of `5.50
billion – among the highest start-up capital for any Indian life insurer. The company serves over 330,000 customers
through 116 branches and over 57,000 personal finance advisors as on March 31, 2021.
The awareness that has been generated in the aftermath of the pandemic has proved to be a growth catalyst
for us as we have focused on strengthening our bouquet of protection and income products by adding several
relevant innovative offerings. ETLI had the first mover-advantage in its flagship products which were the need
of the hour for our customers during the year. We launched COVID Shield+, India’s first individual COVID Life
Insurance Policy through which we helped policyholders to secure their savings against the ongoing pandemic
and several other income products and a well-received term product as well. The biggest success of the year was
Active Income Plan, which currently accounts for one-third of the business mix. We also continued our efforts
on enriching customer buying experience by tightening our processes and investing in technological solutions.
The Gross Premium income in FY21 was `12.48 billion compared to `10.48 billion in the previous year, a growth
of 19%. The Collected Individual Annualised Premium Equivalent (APE) increased by 25% to `4.04 billion in FY21
and the CAGR since FY16 is 24% compared to 11% recorded by the industry. The 13th month persistency is at

76.5% in FY21 compared to 77.6% in FY20 and Individual Claims Settlement Ratio is at 97% in FY21 compared to
83% in FY20. The Embedded Value of the business, calculated on market consistent basis, stands at `12.56 billion
as on March 31, 2021.
We are honoured to have been recognised as Life Insurer of the Year and have won awards for our product
innovation and CSR efforts given by eminent industry consortiums and platforms.
GENERAL INSURANCE
Edelweiss General Insurance (EGIL) registered a robust ~49% increase in premium in FY21 YoY, which was the
second fastest growth rate in the industry. This was a true validation of our digital operating model. What is even
more heartening is that the growth was driven by Health-Retail and Motor; especially the latter which grew at
46% for us while the Industry declined at 2%.
We continue to expand our revenue and service partnerships across motor and health segments. We are also
developing external distribution partnerships with the ecosystem as well as new-age internet economy players.
With a future ready insurance stack in place, we added capabilities to our architecture through addition of an
Open API gateway, data lake, enhanced partner portals and new product customisation modules. This enables us
to connect and integrate with our partners seamlessly.
We are engaging with partners and clients in adjacencies like preventive health and wellness as well as physical
risk management. We are committed to expanding and scaling our health and motor portfolios through an
ecosystem partnership approach.
Going by the encouraging response we received for our product, Edelweiss SWITCH, launched last year through
the sandbox initiative, we have filed for more innovative products in the next tranche.
We are proud to have won top awards for our product innovation and technology adoption efforts given by
eminent industry consortiums and platforms. We have won multiple awards for an innovative product like
Edelweiss SWITCH and other technology initiatives undertaken.
Apart from bringing innovative solutions for customers and enhancing their experience with us, we endeavour
to continuously improve operational efficiency using our digital platform and leveraging data analytics for risk
selection and pricing and are hopeful that the coming years will see higher growth for us.
EDELWEISS WEALTH MANAGEMENT BUSINESS (EWM)

As one of India’s fastest growing wealth management companies, we ranked second amongst the Indian wealth
management businesses excluding banks (Source: Asian Private Banker League Tables for FY20). We cater to the
evolving needs of ~2,600 Ultra High-Networth (UHNW) families and ~7,00,000 Affluent clients across all major
locations in India with over `1,550 billion in Assets under Advice (AuA) at the end of FY21, a growth of 36% YoY.
The AuA have demonstrated consistent growth at 43% CAGR since FY15.
Our offerings include:
• Family Governance, Wealth Structuring, Inheritance planning
• Investment Management across all asset classes
• Risk Management
• ESOP Financing and Margin Funding
• Insurance Advisory
• Philanthropy

Our competitive edge in this business emanates from our specialisation around selected client segments,
offering:
• Bespoke Value Propositions through Transparency, Simplicity and Constant Communication
• Uniform and Seamless Advisory through Expert Relationship Managers (RMs) and Teams
• Relevant Product Innovations
• Smart and Contextual Digital Platforms for Ease and Agility in Transactions
We achieved excellence in operations and customer centricity, by sharpening focus on:
• Our Customers
• Our People EWM Business:
• Our Digital Platforms • Equity raise and value unlocking
in EWM through partnership
• Our Technology with PAG
• Our Partners: • Market dominant presence:
We have continued to grow in
• Pacific Alliance Group(PAG) - our partnership with PAG,
terms of Net New Money, Fee
one of the world’s largest Asia-focused investment
Income, Franchise strength and
groups, will unlock value for shareholders and
number of customers
accelerate business growth, powered by their capital,
business expertise and global experience. • AuA grew 36% and clients grew
22% in FY21 YoY
• PAG has made an investment of ~`23.66 billion in
• AuA grew 5.3x in the last five
EWM, including primary and secondary investment in
years to touch `1.55 trillion by
March 2021. PAG is also acquiring the entire ownership
March ‘21
of prior investors in EWM, Kora Management and
Sanaka Capital, taking its stake to ~61.5%. Edelweiss
will continue to hold ~38.5% stake in EWM, with the option to increase it up to ~44%. With this, EWM
has ceased to be a subsidiary of EFSL with effect from March 26, 2021.
Edelweiss Investment Banking is a full service advisory platform with proven track record across products including
Equity/Debt capital markets, M&A, Private Equity, Special Situations and Structured Finance. It continues to be
among leaders and has executed 60+ equity and debt transactions in FY21 across marquee clients.
As a mid-size QIP player, we are ranked #1 in India for QIPs in the range of `1 billion to `10 billion in the last 5
years period from April 2016 to March 2021 with a market share of ~16% in terms of number of issues handled.
We are also ranked joint second advisor in Venture Intelligence M&A league table for CY2020 by number of deals
and ranked #1 private equity advisor in BSFI and Food & Beverages category.
Edelweiss Debt Capital Markets business maintained its Number 1 position in FY21 in public issuance of bonds
for the 7th year running. We were lead arrangers to ~70% of the amount mobilised via this route (Source: Prime
Database). In CP issuances, Edelweiss stood at 3rd position in FY21 with a market share of ~13% (Source: Prime
Database).
BALANCE SHEET MANAGEMENT UNIT (BMU)

Overview
The BMU is akin to Corporate Treasury of a commercial bank. To that end, the BMU tracks daily cash flows and
expected cash flows for near, medium and long-term. The unit also ensures maintenance of a robust liquidity
pool at group and entity level and optimises the investment on these liquid assets. The team also focuses on
optimisation of borrowing costs as well as capital allocation. These responsibilities are devolved at entity level to
ensure compliance and efficiency.

Asset Liability Management Committee (ALCO)
Each business manages its ALCO in line with their own statutory regulations. The ALCO manages allocation of
capital among businesses along with asset liability management. It also manages interest rate and liquidity risks.
Updates
Available Liquidity
BMU ensures that an adequate liquidity cushion is maintained at all times to take care of all maturing liabilities. For
Edelweiss, what stood out in FY21 was robust liquidity management and focus on optimum revenue generation
from liquid assets.
At the end of FY21, we maintained available liquidity of ~`68 billion. This included overnight liquid assets of ~`35
billion, high-quality liquid assets of over `29 billion which can be liquidated within a short span (if the need arises)
and undrawn committed bank credit lines of ~`4 billion. With this, a large part of the balance sheet is liquid and
can be converted into cash in a short period of time.
We have been able to raise funds through multiple sources and have also raised equity of ~`24 billion in FY21. We
have more than enough liquidity to manage any contingencies as well as have a strong outlook towards future
funding sources.
ALM Profile
We continue to diversify sources of borrowings and the type of instruments through which we borrow. With this
focus, ~98% of our adjusted borrowings are in the form of Term Loans & NCDs. With the help of public issues and
our retail borrowing programmes, we have also increased the proportion of funding through retail sources from
~23% to ~26% in the past one year of our adjusted borrowings. There has been a concerted effort to maintain a
higher proportion of borrowings in medium to long-term buckets. Accordingly, long-term borrowings now stand
at ~61% of the total borrowings.
On the asset side, we executed a wholesale book sell down (~`8 billion) to fortify available liquidity and we
continue to reorient our balance sheet towards retail growth. All these steps have ensured that we maintain a
positive ALM gap through all time buckets, individually as well as at consolidated level.
OPPORTUNITIES
Financial services in India continue to offer enormous and scalable opportunities for diversified companies like
Edelweiss as under notwithstanding the recent economic downturn worsened by a prolonged pandemic as the
long-term growth story of India remains intact:
• Democratisation of credit, aspirations of younger population, Government’s push for affordable housing and
increased availability of credit for SME sector will continue to present growth opportunities for companies
like ours engaged in extending retail credit.
• The financialisation of Indian household savings, low credit penetration and demand for consumption
are presenting newer opportunities in the areas like credit, wealth management, asset management and
insurance which are our major businesses. In addition, persistent stress on asset quality of banks will continue
to offer asset reconstruction opportunities where we are the market leaders.
• The monsoon is predicted to be normal for the third year in a row which will boost farm sentiments and
improve overall prospects of an economic revival.

THREATS
While the economy is gradually coming out of the shadows of the pandemic, following threats cannot be ruled
out and these, if they materialise, could reverse the current revival of the economy including financial services
industry in India:
• While the current indications are that the second COVID-19 wave may be on the wane, its resurgence or the
possibility of a third wave may reverse recovery of macro-economy, domestically as well as globally.
• If the current challenges for NBFCs to source liabilities do not resolve soon, growth will continue to be a
challenge for the sector.
• Any abnormal surge in oil prices or weak monsoon or further delay in revival of capex cycle can also inhibit
growth.
EDELWEISS OUTLOOK & STRATEGY
While the GDP growth forecast for FY22 is around 9%, threats as outlined above can quickly derail the current
momentum of the economy. Though we are in the midst of another COVID-19 wave, we are also going through
the biggest vaccination programme that the world has seen. Hopefully, impact of the second wave will not be
as severe as the first one. Our confidence in the long-term India story continues to remain intact and growth
opportunities will come back sooner than later.
EWM – New Beginnings

Last year has been a journey of resilience, determination and persistency for Edelweiss. It is this determination
and hard work that helped us complete the Edelweiss – PAG partnership in our wealth management business.
The wealth management business has a tremendous growth runway ahead and a global partner like PAG will
help us take the business to the next level in this journey. The partnership will also result in unlocking long-term
value for our shareholders and help further strengthen our capital base as we continue to scale up our leadership
businesses while simultaneously investing in our younger retail businesses.
Edelweiss Group – On to the next 25!

For the Edelweiss group this year marks the culmination of the
first quarter-century of our journey. In this journey, we have
established and nurtured businesses to scale, with the sole
Edelweiss Outlook &
objective of creating value for all our stakeholders. The PAG
Strategy
partnership is an endorsement of the quality of businesses we • Long-term India opportunity
have built to scale over the years and the value we have created. story remains intact
We are simultaneously working towards defining the contours of • PAG partnership to unlock
the Edelweiss of the future – the Edelweiss of the next 25 years. value for shareholders
With this in mind, we have taken some decisions to compromise
• Journey towards creating value
on profitability at the cost of reduced complexity. While this
for all stakeholders continues
might seem counter-intuitive at a time when profitability has
been otherwise impacted, the intention is to approach the next • Focus on culture, people,
stage of Edelweiss and India’s growth journey with minimal nurturing and scaling
complexity to enable an even stronger growth trajectory. While businesses
the basic contours of our organisation will remain the same – • New paradigms of focus –
a focus on culture, people, nurturing and scaling businesses, processes, institutionalisation,
we will also see some new paradigms of focus – process and and tech-oriented thinking
institutionalisation, tech-oriented thinking, independent and
self-sufficient businesses. • Businesses to be independent
and self sufficient

With the second wave of COVID-19 and the vaccination drive, FY22 comes with both uncertainty and hope.
During the year, we will continue to focus on strengthening balance sheet and liquidity; Invest in our retail credit,
asset management and Insurance businesses and progress on the EWM demerger, in preparation for listing by
Q3FY23, thereby unlocking value for our shareholders. Robust equity, comfortable liquidity and agile operating
platforms will give us a solid foundation as we look towards economic revival and growth in the years ahead.
GOVERNANCE
Governance is at the heart of everything we do and it transcends beyond compliance extending to ethics
and values as well because we believe that well governed organisations tend to last longer. Governance to us
means Trust covering Ethics & Integrity, Legitimacy encompassing Transparency, Authenticity and Fairness,
Accountability including Decision making, Responsiveness, Competence highlighting Simplicity, and above all
Respect for letter and Spirit of Law.
Our Board plays vital role in ensuring highest Governance level within the group by setting tone from top
throughout the fabric of our organisation. Boards of the Group set higher standards on ethics, integrity,
transparency and fairness leading us to build good framework for conduct, behaviour, and process oversights at
all levels.
In order to promote good governance culture, we have self-defined rules for good behaviour and conduct at
individual as well as at entity levels covering issues of Conflict of Interest, Insider Trading, Dealing with Sensitive
Information etc. Learning from the recent past, we are refining some of the practices to facilitate smooth
functioning while working from home through use of technology ensuring that best in class compliance standards
are met always.
RISK MANAGEMENT
Respect for risk is an integral part of business at Edelweiss. The good risk management practices of the Group
have facilitated navigating through environmentally turbulent times. Our Enterprise Risk Management (ERM)
framework has helped us strategically benchmark our practices to the best in class. We have also put in place an
in-house “Eleven-risk framework” to formalise the process of Assess, Avoid, Manage and Mitigate risks across
businesses in a continuous manner.
Business Risk Market Risk
Reputa�onal Risk Credit Risk
Regulatory Risk Fraud Risk
Opera�onal Risk
People Risk
Liquidity Risk Physical & Infra Risk
Technology Risk

A number of new initiatives were taken in these eleven risk areas during the year as under:
• For Regulatory risk, introduction of analytics to identify early warning signs has facilitated in effective
implementation of pro-active mitigant measures.
• For Operational & Process risk, all businesses have identified their critical as well as non-critical processes
with a thorough review of the standard operating procedures (SOPs).
• For Credit risk, a comprehensive framework for asset quality review was put in place and the recalibration of
the expected credit loss (ECL) model has been concluded.
• Reputational risk has been factored in all business strategies and it is managed with effective crisis
management approach and timely transparent response to all stakeholders.
• For Technology risk, significant progress has been made on IT security front to manage the risk emanating
from the changing ecosystem.
The elaborate risk governance structure at Edelweiss includes Risk Committee of the Board of the listed company.
In addition, key subsidiaries also have risk committee of their respective boards. At individual business level
we have Investment Committees, Credit Committees, and Business Risk Groups to Access, Avoid, Manage and
Mitigate various risks.
Last year the whole world has faced a tail risk event of COVID-19 pandemic. This event necessitated unique
approaches to mitigate different types of risks. Our advance preparation along with technology enablement
ensured all our businesses continued to operate seamlessly and serve customer deliverables. We are using all
our learnings from the pandemic to manage various types of emerging and newer risks in our businesses.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Edelweiss group has institutionalised a strong compliance culture across all the businesses recognising that
transparency and trust amongst all its stakeholders can be achieved only through this. We believe Compliance is
the cornerstone of good corporate citizenship.
Internal Financial Controls

The internal controls at Edelweiss are commensurate with the business requirements, its scale of operation and
applicable statutes to ensure orderly and efficient conduct of business. These controls have been designed to
ensure assurance with regard to maintaining proper accounting controls, substantiation of financial statements
and adherence to Ind AS requirements, safeguarding of resources, prevention and detection of frauds and errors,
ensuring operating effectiveness, reliability of financial reporting, compliance with applicable regulations and
relevant matters covered under Section 134 (5) (e) of the Companies Act 2013.
The Internal Control Framework of Edelweiss continue to follow the assurance practices like COSO framework,
assurance on process efficiency and reliability of internal controls being aligned to risk identified in Risk Control
Self-Assessment (RCSA) etc. to strengthen overall control.
Independent Audit and Assurance

Internal Auditors follow Standards on Internal Audit, along with guidelines issued by regulators and ensure
compliance with Section 138 of the Companies Act 2013, read with Rule 13 of the Companies (Accounts) Rules,
2014, as amended and notified from time to time. The Internal Audit function operates under the supervision of
the Audit Committee of the Board.
The Internal audits are carried out by external professionals who provide independent view and assurance by
assessing the adequacy and effectiveness of internal control, compliance to internal and external guidelines and
risk management practices across the Group.
Further, Statutory Auditors verify the systems and processes and confirm adequacy of the Internal Financial
Controls over financial reporting.


TECHNOLOGY
Strong technology backbone
While the last year was unprecedented and challenging for most of the organisations worldwide, Edelweiss had
an edge because of its strong technology backbone. Even with the pandemic hitting, we were able to ensure
business continuity and provide seamless experience to our customers through the digital channels.
Technology resiliency
The key pillars of our technology resiliency have been:
Cloud adoption: Enterprise API gateway:

Migrating to the cloud ensured high This enabled us to leverage the
availability, scalability and resiliency of our partner ecosystem and accelerate
business applications with employees being the turnaround time for new product
able to securely access from anywhere, launches
using any device and at any time
Unified collaboration suite: Intelligent automation:

Deployment of a unified collaboration This enabled us to develop new
suite helped improve the employee experiences and deliver process
productivity changes rapidly through low code
software development tools
Artificial Intelligence:
Leveraging advanced Machine Learning algorithms, we have deployed over 20 models for evaluating
risks, performing AML checks, doing customer KYC, identifying frauds etc., thereby building efficiencies
in our business
A few key initiatives

Project SWIFT: SWIFT is India’s first, completely paperless onboarding platform for Alternative Investment Funds
(AIFs). It is completely integrated with Aadhaar-based e-sign, e-stamp paper etc.
Virat: Virat is our renewed Mutual Fund transaction processing system which is among the fastest in the industry
to process Mutual Fund transactions. We have also revamped our Mutual Funds website to bring out maximum
transparency in our mutual fund schemes for the investor community.
Cloud-based Retail collection system: We have developed an end-to-end integrated collection system with mobile
capabilities for our Assets Reconstruction business to improve efficiency.
Bolt: Bolt is a mobile application that enables self-inspection by workshops and customers alike through live streaming
for our General Insurance business. Bolt’s adoption remains high at 40% to 50% even now indicating changed
preference of the users for tech-enabled solutions.
SWITCH Mobile App: With SWITCH app, we enabled Driver-based Insurance where customers pay only for the days
they drive their vehicle and save on premium when they do not.
Digital Lending Platform (DLP): Digital Lending Platform for loan origination has accelerated the decision making and
disbursement via smart eligibility checks, paperless functioning, and instant validation of applicant’s credit worthiness.
Retail Trading platform: We overhauled our retail trading platform to ensure quick scaleup of our ability to push
transactions into the exchange and have also started migrating our client-side platform offering to the cloud.

Information Security & IT Governance
In order to cater to the ever changing landscape post pandemic, we have moved away from the traditional castle-
and-moat security model to Zero Trust Network Security model. This requires strict identity verification for every
person and device trying to access resources on private corporate network. Going forward, enhancing the Cloud
security framework and governance at Edelweiss �roup will continue to be a priority area. Further, even during
these trying times, we have been able to maintain 100% regulatory and policy compliance of all our IT security
controls with zero downtime.
With respect to IT Governance, we intend to continue our focus on process standardisation and strengthen our
governance practices to ensure the right balance of efficiency, risk and compliance.
HUMAN RESOURCES
Crisis begets opportunity and it is the strength of our people that has turned the pandemic and volatile economic
environment into opportunity with their energy, persistence and agile thinking. Along with this, anchored to our
guiding principles, our culture and values continue to guide our choices and keep us resilient.
People Practices
Our policies provide greater flexibility, equipping our employees to contribute with same or better productivity
and to broaden their knowledge beyond their role. A significant component of our value-based culture is also
commitment to acknowledge and appreciate efforts of employees through extensive recognition programmes.
Workplace
Our offices are reimagined and repurposed to support work from home and hybrid work feasibility enabling
employees to connect, collaborate, manage work interactions with a mix of remote, onsite and hybrid workforce,
as well as with the clients.
Well-being
We continued to remain grounded in our culture of care and our commitment to employee safety and well-
being. During this pandemic, we made medical coverage for COVID-19 accessible early on for all employees and
their dependent family members. As a family, through round-the-clock support from our Incident Room, working
towards arranging for emergency services, employee outreach programmes and 24*7 counselling services, we
hope to support our employees in the best possible way.
Leadership
In the changed context, virtual leadership emerged to ensure that plans, decisions, information and
accomplishments are shared to motivate team members while sustaining connection, trust, and engagement
with team members through frequent check-ins.
Our tiered Edelweiss Leadership Program in businesses continues to build capacities to nurture top talent in entry
and mid-level. Focus on Senior leadership cohort continues to build a strong thinking body which acts as catalyst
to shape our strategy. Over 5% of our employees are part of this pipeline.
Our ~8,518 people (including EWM), with ~23% of them being women, continue to be our strength as we embark
on our journey of the next 25 years of Edelweiss.
EDELWEISS BRAND – BEUNLIMITED

Rising to the needs of the community we operate in and giving back in a meaningful way has been a constant
endeavour at Edelweiss. COVID-19 brough to light the painful plight of migrant workers and domestic help
community. As a responsible brand, Edelweiss took the lead and started a public service initiative #HelpYourHelp
which attempts to educate and encourage individuals to empower this unorganised community over the long-
haul, through a digital repository of 20+ Government welfare schemes.

The campaign also received stellar support from people from all walks of life. Our sports ambassadors during
FY21 – Dipa Karmakar, Hima Das and Manika Batra were among the influencers who also pledged their support
and encouraged others to follow with the hope that it will encourage the target group to chase their dreams and
empower them to truly #BeUnlimited.
CUSTOMER EXPERIENCE
At Edelweiss, Customer Experience (CX) is regarded as a key pillar of business success in true spirit.
With this motto in sight, we have continued to build a culture of customer-centric businesses across the Group. To
drive this agenda, we have also implemented wide ranging measures across the Group including digital upgrade.
Through these efforts, we are responding to evolving customer needs and institutionalising these processes
across the organisation, to ensure a superlative experience for all our customers, throughout the value chain.
Cautionary Statement
Statements made in this Annual Report may contain certain words or phrases that are forward-looking statements, which are tentative,
based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associates
(“Edelweiss”). Actual results may vary from such statements contained in this report due to various risks and uncertainties. These risks
and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in
the securities market, new regulations and Government policies that may impact the businesses of Edelweiss as well as the ability to
implement its strategy. The information contained herein is as of the date referenced and Edelweiss does not undertake any obligation to
update these statements. Edelweiss has obtained all market or industry data and other information from sources believed to be reliable
or through its internal estimates unless otherwise stated, although its accuracy or completeness cannot be guaranteed. Some part of the
report relating to business wise financial performance, balance sheet, asset books of Edelweiss and industry data herein is reclassified/
regrouped based on Management estimates and may not directly correspond to published data. The numbers have also been rounded
off or approximated in the interest of easier understanding. Prior period or other figures have been regrouped/reclassified/re-casted
wherever necessary. FY18, FY19, FY20 and FY21 Numbers are as per IndAS whereas the rest are as per IGAAP. All information in this
presentation has been prepared solely by the company and has not been independently verified by anyone else.

Integrated Reporting
At Edelweiss, we realise that the true value of any organisation is based on tangible
and intangible aspects. Some, like financial performance are tangible, but others, like
intellectual capital, brand equity and culture are harder to quantify.
Our philosophy on quality and humanity is intertwined with who we are, what we do
and how we create value, adopt strategy, seize opportunities, control risks and how
we protect and take care of our employees and customers. Here is a holistic view of
us as an organisation through our performance, business model and strategy.

STRATEGY AND RESOURCE ALLOCATION RISKS AND OPPORTUNITIES
Edelweiss as a business has used the pandemic as an While the second wave of COVID-19 is on the wane, its
accelerator of strategic decisions already taken. We resurgence or a third wave can impact growth along with
are committed to creating and unlocking shareholder a slower than expected recovery of the macro-economy.
value via our diversified business model as we did However, with the financialisation of household savings,
by partnering with PAG for our Wealth Management democratisation of credit and emerging technology trends,
business. We will continue to focus on liquidity the long-term India story remains promising. FY22 comes
management, manage asset quality and recoveries both with uncertainty and hope.
with focus on digital led business model and our
responsibility to society.
GOVERNANCE PERFORMANCE IN FY21

Our businesses have been resilient in these testing times of
Governance is at the heart of everything we do the pandemic. While the Alternatives, Asset Reconstruction
and transcends compliance. Our sustainability and Wealth Management business have maintained
model is aligned to the United Nation’s Sustainable their industry leadership, our Mutual Fund, Retail Credit
Development Goals and revolves around contributing are growing franchisees. The Life Insurance and digitally
to society, protecting the environment and powered General Insurance business continued to grow
responsible governance. and gain market share, while recoveries in ARC continue
to be strong. All our businesses are well-capitalised, with
operationally independent and robust platforms.
ORGANISATIONAL OVERVIEW AND OUTLOOK BUSINESS MODEL

EXTERNAL ENVIRONMENT
This year marks the culmination of the As we enter FY22, we will continue to Our business operating
first quarter-century of our journey. We focus on strengthening balance sheet and structure with diversified
are working towards defining the contours liquidity; Invest in our retail credit, asset revenue streams keeps us
of the Edelweiss of the future. While the management and Insurance businesses and agile in any environment.
basic contours of our organisation will progress on the EWM demerger. Robust Presence in large and emerging
remain the same – a focus on culture, equity, comfortable liquidity and agile opportunities in India has
people, nurturing and scaling businesses, operating platforms will give us a solid helped us diversify our earnings
we will also see some new paradigms of foundation as we look towards economic base to be able to withstand
focus – process and institutionalisation, revival and growth in the years ahead. market volatility as well as
tech-oriented thinking, independent create value for shareholders.
and self-sufficient businesses. The
environment is gradually improving and
our businesses are poised for growth.
96 | Integrated Reporting
Annexure I
DIVIDEND DISTRIBUTION POLICY

Introduction: The Company will endeavour to maintain the
The Securities and Exchange Board of India dividend track record subject to the factors
(SEBI), has mandated certain categories of listed which the Board might appropriately consider at
companies to formulate a Dividend Distribution that point in time. When the performance of the
Policy (‘Policy’). This Policy is in accordance with Company coupled with the market conditions are
Regulation 43A of SEBI (Listing Obligations and conducive/favourable, the Board may consider
Disclosure Requirements) Regulations, 2015. declaring interim dividends too.
In order to conserve resources, the Board may
Objective:
consider recommending a lesser rate of dividend
One of the ways to reward a shareholder is by (as compared to the earlier years). The retained
distributing portion of Company’s earnings in the earnings of the Company can be inter-alia utilized
form of dividend. Besides capital appreciation, an for capex, working capital requirement, investment
investor expects a consistent cash inflow in the in growth opportunities as deemed fit by the Board
form of dividend. Towards this end, the Policy lays at appropriate time. The retained earnings may also
down parameters to be considered by the Board be utilised for payment of dividend in subsequent
of Directors of the Company for declaration of years, or other permitted means of rewarding the
Dividend from time to time. shareholders.
Definitions: In a year where the profits of the Company are
Unless repugnant to the context: inadequate or there is a loss, the Company would
“Act” shall mean the Companies Act, 2013 including like to utilise the reserves judiciously and the Board
the Rules made thereunder. may not consider payment of dividend as a viable
“Company” shall mean Edelweiss Financial Services proposition. Alternatively, in such a scenario the
Limited Board might consider declaring dividends, out of
“Board” or “Board of Directors” shall mean Board the Free Reserves or the accumulated profits and
of Directors of the Company. the dividend payment track record is maintained.
“Dividend” shall mean Dividend as defined under The amounts paid as dividend in the past does not
the Companies Act, 2013 necessarily indicate the dividend to be paid in the
“SEBI Regulations” shall mean the Securities future and so the rate and the amount of dividend
and Exchange Board of India (Listing Obligations may vary from time to time.
and Disclosure Requirements) Regulations, 2015 Provision regarding class of shares:
together with the circulars issued thereunder,
Currently, the Company has issued only Equity
including any statutory modifications or re-
Shares and this Policy shall be made applicable only
enactments thereof for the time being in force.
to Equity Shares. As and when the Company issues
Regulatory Framework other kind of shares, the Policy shall be amended
The Companies Act, 2013 provides for regulation, accordingly.
recommendation, declaration and payment of Review/Amendment:
dividend, subject to approval of the Board (interim)/
The Board shall review and amend the policy
Shareholders (final).
periodically as may be deemed necessary, keeping
Factors for considering Dividend: in view the business environment, the performance
of the Company, regulatory requirements and other
The Board of Directors of the Company (“the
relevant external factors. In case of any change/
Board”) may consider inter-alia the following factors
amendment in applicable statutes/regulations, the
viz., the financial performance of the Company, the
Policy shall stand revised to the extend thereto.
past dividend trends, the liquidity position of the
Company, capital expenditure requirements, if any, For and on behalf of the Board
business expansions (including acquisitions) if any, Edelweiss Financial Services Limited
debt obligations, the external market conditions,
the future potential etc., before considering Rashesh Shah
dividend proposition. Chairman & Managing Director
Mumbai, June 11, 2021 DIN: 00008322

Annexure to Board’s Report (continued)
Annexure II
REMUNERATION POLICY
Objective Remuneration of the Managing Director and
Executive Directors
The Companies Act, 2013 (‘the Act) and the Listing
Regulations requires a Company to frame a policy • The remuneration of the Managing Director
for determining the remuneration payable to the and Executive Directors is recommended
Directors, Key Managerial Personnel (KMPs) and by the Nomination and Remuneration
other Senior level employees. Committee (‘NRC’) to the Board. Based on
the recommendations of the NRC, the Board
The objective of the Remuneration Policy (the determines and approves the remuneration of
Policy) of the Company is to provide a framework the Managing Director and Executive Directors,
for the remuneration of the Independent Directors, subject to necessary approvals, if any.
Non-Executive Directors, Managing Directors, • The remuneration paid to the Managing
Executive Directors, KMPs, and other senior level Director and Executive Directors shall be
employees of the Company. within the limits prescribed under the Act
and approved by the shareholders of the
The Objective of the policy is to ensure that :
Company. The remuneration structure
i. The level and composition of remuneration includes fixed salary, perquisites, bonus, other
is reasonable and sufficient to attract & benefits and allowances and contribution to
retain talent required to run the Company funds, etc.
successfully; • The Executive Directors (other than the
promoter Directors) shall be eligible for stock
ii. Relationship of remuneration to performance
options.
is clear and meets appropriate benchmarks ;
and Remuneration of the KMPs (other than Executive
Directors) and Senior level employees
iii. Remuneration to the Directors, KMPs and
• The key components of remuneration
Senior level employees comprises a balance
package of the KMPs (other than Executive
of fixed and incentive pay reflecting short
Directors) and Senior level employees shall
and long term performance objectives,
comprise of fixed salary, perquisites, annual
appropriate to the working of the Company
bonus, other benefits and allowances and
and its goals.
contribution to Funds, etc. They shall be
Remuneration of the Independent Directors and eligible for stock options.
Non-executive Directors Policy Review
• The Independent Directors and Non- This Policy shall be reviewed by the Board as may
Executive Directors are eligible for sitting fees be deemed necessary and in accordance with
for attending the meetings of the Board and any statutory/regulatory requirements. In case of
the Committees thereof. any change/amendment in applicable statutes/
regulations, the Policy shall stand revised to the
• The Independent Directors and Non-Executive extend thereto.
Directors are also eligible for commission, The NRC shall implement the Policy, and may issue
subject to the limits prescribed under the Act such guidelines, lay down the process etc. as it may
and the Rules framed there under. deem fit.
• The Independent Directors are not eligible for For and on behalf of the Board
stock options. Edelweiss Financial Services Limited
• The Non-Executive Directors (other than Rashesh Shah

promoter Directors) shall be eligible for the Chairman & Managing Director
stock options. Mumbai, June 11, 2021 DIN: 00008322
Annexure III
Annual Report on Corporate Social Responsibility Activities

[As prescribed under Section 135 of the Companies Act, 2013 and
Companies (Corporate Social Responsibility Policy) Rules, 2014]
1. Brief outline on CSR Policy of the Company.
To leverage the capacity and capital to equip and enable the social sector to achieve the greatest
impact on the lives of the poor in India.
2. Composition of CSR Committee:
Sl. Name of Director De signation/Nature Number of Number of

No. of Directorship meetings meetings
of CSR of CSR
Committee Committee
held during attended
the year during the year
1 Mr. Venkatchalam Executive Director 2 2
Ramaswamy (Chairman of the
Committee)
2 Mr. Himanshu Kaji Executive Director 2 2
3 Mr. Rujan Panjwani Executive Director 2 2
4 Mr. P. N. Venkatachalam Independent Director 2 2
3. Web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board
are disclosed on the website of the Company at www.edelweissfin.com.
4. Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report):
Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies
(Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial
year, if any:
Sl. Financial Year Amount available for Amount required to be

No. set-off from preceding set-off for the financial
financial years (in `) year, if any (in `)
1 FY 2017-18
2 FY 2018-19 Nil Nil
3 FY 2019-20
Total Nil Nil
6. Average net profit of the Company as per section 135(5): ` 1,13,48,44,332

7. (a) Two percent of average net profit of the Company as per section 135(5): ` 2,26,96,887
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial
years: NIL
(c) Amount required to be set off for the financial year, if any: NIL
(d) Total CSR obligation for the financial year (7a+7b-7c): ` 2,26,96,887
8. (a) CSR amount spent or unspent for the financial year:
Total Amount Amount Unspent

Spent for the Total Amount transferred Amount transferred to any fund
Financial Year to Unspent CSR Account specified under Schedule VII as per
(in `) as per section 135(6) second proviso to section 135(5)
Amount Date of Name of Amount Date of
transfer the Fund transfer
2,27,00,000 Nil - - Nil -
(b) Details of CSR amount spent against ongoing projects for the financial year:
As per Annexure A to this Report
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
As per Annexure B to this Report
(d) Amount spent in Administrative Overheads:
NIL
(e) Amount spent on Impact Assessment, if applicable:
Not applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e):
During the year ended March 31, 2021, the Company has spent ` 2,27,00,000 on standalone
basis and ` 29,78,58,000 on consolidated basis.
(g) Excess amount for set off, if any:
Sl. Particular Amount

No. (in `)
(i) Two percent of average net profit of the Company as per section 2,26,96,887
135(5)
(ii) Total amount spent for the financial year 2,27,00,000
(iii) Excess amount spent for the financial year [(ii)-(i)] 3,113
(iv) Surplus arising out of the CSR projects or programmes or -
activities of the previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)- -
(iv)]

9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount Amount Amount transferred to Amount

No. Financial transferred spent any fund specified under remaining to
Year to Unspent in the Schedule VII as per section be spent in
CSR Account reporting 135(6), if any. succeeding
under section Financial Name Amount Date of financial
135 (6) (in `) Year of the (in `) transfer years
(in `) Fund (in `)
1 FY 2017-18
2 FY 2018-19 Nil
3 FY 2019-20
Total Nil
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Sl. Project Name Financial Year Project Total Amount Cumulative Status of
No. ID of the in which the duration amount spent on amount the project -
Project project was allocated the project spent at Completed/
commenced for the in the the end of Ongoing
project reporting reporting
(in `) Financial Financial
Year (in `) Year. (in `)
- Nil
Total Nil
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created
or acquired through CSR spent in the financial year (asset-wise details):
a) Date of creation or acquisition of the capital asset(s): None
b) Amount of CSR spent for creation or acquisition of capital asset: Nil
c) Details of the entity or public authority or beneficiary under whose name such capital asset is
registered, their address etc.: Not Applicable
d) Provide details of the capital asset(s) created or acquired (including complete address and
location of the capital asset): Not Applicable
11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as
per section 135(5): Not Applicable
Venkatchalam Ramaswamy Himanshu Kaji

Executive Director (Chairman of the CSR Committee) Executive Director
DIN: 00008509 DIN: 00009438
Date: June 11, 2021

Annexure A
Details of CSR amount spent against ongoing projects for the financial year:
1 2 3 4 5 6 7 8 9 10 11
Sl. Name of the project Item from Local Location of the project Project Amount Amount Amount Mode of Mode of implementation
No. the list of Area duration allocated spent in transferred impleme- through implementing
activities in (Yes/ for the the current to unspent ntation agency
Schedule VII No) State District project financial CSR account – Direct Name CSR
to the Act (in `) year for the project (Yes/No) Registration
(in `) as per Section
number
135(6) (in `)
1 Climate Change Livelihood Chhattisgarh Balod 3 1,03,60,581 1,03,60,581 -
Adaptation Measures
for promotion of
Livelihood of Rural
Tribal farmers through
agri & allied sector
interventions
2 Ensuring safety of Women Gujarat Kutch 1 66,64,665 66,64,665 -
women and realise the Empowerment
vision of ‘a safe district
for women is a safe
district for all No EdelGive
3 Unnitir Udaan Women West Bengal 24 Parganas 3 14,93,100 14,93,100 - No CSR00000514
Foundation
Empowerment
4 Water for Life and Livelihood Orissa Mayurbanj 3 18,81,605 18,81,605 -
Livelihood
5 Building wealthy Livelihood Tamil Nadu Pudukottai 2 2,28,541 2,28,541 -
resilient and responsible
farmers through Vrutti’s
3-fold model
6 Enhancing livelihoods Livelihood Maharashtra Nagpur 2 19,71,508 19,71,508 -
through protective
irrigation
TOTAL 2,26,00,000 2,26,00,000 -
Annexure- B
Details of CSR amount spent against other than ongoing projects for the financial year:
1 2 3 4 5 6 7 8
Sl. Name of the project Item from the list of Local Location of the project Amount Mode of Mode of implementation -
No. activities in Schedule Area spent for implementation through implementing agency
VII to the Act (Yes/ State District the project - Direct Name CSR registration
No) (in `) (Yes/No) number
1 On ground relief work Reducing inequalities Yes Maharashtra Mumbai 1,00,000 No EdelGive CSR00000514
Foundation
TOTAL 1,00,000 -

Annexure - IV
Form No. MR-3

SECRETARIAL AUDIT REPORT
For the year ended 31st March, 2021
[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
The Members
Edelweiss Financial Services Limited,
We have conducted the Secretarial Audit of the We hereby report that in our opinion, during the
compliance of the applicable statutory provisions audit period the Company has, to the extent, in
and the adherence to good corporate practices by the manner and subject to the reporting made
Edelweiss Financial Services Limited, having CIN: hereinafter:
L99999MH1995PLC094641 (hereinafter called
the ‘Company’) during the financial year from 1st (i) complied with the statutory provisions listed
April 2020 to 31st March 2021, (‘the year’/‘audit below and
period’/‘period under review’).
(ii) has Board-processes and compliance
We have conducted the Secretarial Audit in a manner mechanism in place.
that provided us a reasonable basis for evaluating
The members are requested to read this Report
the Company’s corporate conducts/statutory
along with our letter of even date annexed hereto
compliances and expressing our opinion thereon.
as Annexure- A.
We are issuing this report based on:
1. Compliance with specific statutory
(i) our verification of the books, papers, minutes provisions
books, soft copies, hard copies or scanned
1.1. We further report that:
copies by email, information provided
through virtual data room and other records a. We have examined the books, papers,
maintained by the Company and furnished minute books and other records maintained
to us, forms/returns, documents etc. filed by the Company and the forms, returns,
and other relevant records and procedures reports, disclosures and information filed or
completed by the Company during the year disseminated during the year according to
ended 31st March 2021, the applicable provisions/clauses of:
(ii) Our observations during our visits to the i. The Companies Act, 2013 ( “the Act”)
office/s of the Company, and the Rules framed thereunder;
(iii) Compliance Certificates confirming ii. The Securities Contracts (Regulation)

Compliance with all laws applicable to the Act, 1956 and the Rules framed
Company given by the Key Managerial thereunder;
Personnel of the Company and taken on
record by the Board of Directors, and iii. The Depositories Act, 1996 and the
Regulations and Bye-laws framed
(iv) Representations made, documents shown thereunder;
and information provided by the Company,
its officers, agents, and authorised iv. The Foreign Exchange Management
representatives during our conduct of the Act, 1999 and the Rules/Regulations
Secretarial Audit. framed thereunder (FEMA) to the

extent of Overseas Direct Investment, (h) The Securities and Exchange
Foreign Direct Investment and External Board of India (Delisting of
Commercial Borrowings, as applicable Equity Shares) Regulations,
to the Company; 2009;
v. The following Regulations, Guidelines (i) The Securities and Exchange

prescribed under the Securities and Board of India (Buyback of
Exchange Board of India Act, 1992 Securities) Regulations, 2018;
(‘SEBI Regulations’):
vi. The following regulations are
(a) The Securities and Exchange specifically applicable to the Company:
Board of India (Substantial
Acquisition of Shares and • The Securities and Exchange
Takeovers) Regulations, 2011; Board of India (Merchant
Banking) Regulations, 1992.
(b) The Securities and Exchange
Board of India (Prohibition of vii. Listing agreements entered into by
Insider Trading) Regulations, the Company with the National Stock
2015 (PIT Regulations); Exchange of India Limited (NSE) and
BSE Limited (BSE) (Agreements),
(c) The Securities and Exchange pursuant to the requirements of the
Board of India (Share Based Listing Regulations.
Employee Benefits) Regulations,
2014; viii. Secretarial Standards SS-1 and
SS-2 respectively in relation to the
(d) The Securities and Exchange meetings of the Board and General
Board of India (Registrars to an Meetings, issued by The Institute of
Issue and Share Transfer Agents) Company Secretaries of India, which
Regulations, 1993 regarding are mandatory in application.
the Companies Act, 2013 and
dealing with the holders of 1.2 During the period under review, the Company
securities; has, to the best of our knowledge and belief
and based on the records, information,
(e) The Securities and Exchange explanations and representations furnished
Board of India (Listing to us:
Obligations and Disclosure
Requirements) Regulations, i. Complied with the applicable
2015 (Listing Regulations); and provisions/clauses of the Act, Rules,
SEBI Regulations and Agreements
(f) The Securities and Exchange mentioned under sub-paragraphs (ii)
Board of India (Issue and Listing to (vii) of paragraph 1.1 above.
of Debt Securities) Regulations,
2008. ii. Generally complied with the applicable
provisions/clauses of:
The following Regulations were not
applicable to the Company, during the a) The Act and rules mentioned
year under review: under paragraph 1.1 (i);
(g) The Securities and Exchange b) FEMA to extent applicable

Board of India (Issue of Capital mentioned under paragraph 1.1
and Disclosure Requirements) (iv), and
Regulations, 2018;

c) The Secretarial Standards 2.2 The processes relating to appointment and

on meetings of the Board of re-appointment of the Board of Directors
Directors (SS-1) and Secretarial and the Key Managerial Personnel during
Standards on General Meetings the year were carried out in compliance
(SS-2) mentioned under with the provisions of the Act and the Listing
paragraph 1.1 (viii) above to Regulations. During the year, the following
the extent applicable to the appointment/re-appointments, resignations
meetings of the Board and its took place:
Committees held during the
year and the 25th Annual General • (i) Re-appointment of Ms. Vidya
Meeting held on 28th September Shah (DIN: 00274831) and
2020. The Compliance with the Mr. Rujan Panjwani (DIN:
provisions of the Rules made 00237366) as directors, retiring
under the Act with regard to the by rotation, in accordance with
meetings of the Board and its the provisions of the Act, at the
Committees held through Video 25th AGM;
Conferencing /Other Audio (ii) Re-appointment of Mr. Rujan
Visual Means (OAVM), during Panjwani (DIN: 00237366) as an
the period under review, was Executive Director for a further
verified based on the minutes period of 5 years w.e.f. June 24,
of the meetings provided by the 2021 at the 25th AGM;
Company;
• Resignation of Ms. Anita George
1.3. We have also examined, on test-check (DIN: 00441131), as a Director of the
basis, the relevant documents and records Company, w.e.f. July 13, 2020;
maintained by the Company according to the
• Resignation of Mr. S. Ranganathan,
following regulation, applicable specifically to
as the Chief Financial Officer of the
the Company:
Company w. e. f. October 31, 2020;
• The Securities and Exchange Board of • Appointment of Mr. Sarju Simaria
India (Merchant Banking) Regulations, as the Chief Financial Officer of the
1992. Company, w.e.f. November 1, 2020;
2. Board processes: • Further the Board at its meeting held

on March 25, 2021, accepted the
We further report that: resignation of Mr. B. Renganathan,
Company Secretary of the Company
2.1 As on March 31, 2021, in terms of the
and appointed Mr. Tarun Khurana as
provisions of the Act and the Listing
the Company Secretary. The changes
Regulations, the Board of Directors of
were effective from April 23, 2021,
Company comprised of twelve members, as
as per information provided by the
under:
Company.
i. One Managing Director, one Executive 2.3 Adequate notice with Agenda and the detailed
Director and one Non-executive notes to Agenda of at least seven days was
Non-Independent Director (Promoter given to all the directors to enable them to
Category); plan their schedule for the meetings of the
Board and the Committees constituted by the
ii. Two Executive Directors;
Board and where the meetings were held at
iii. Seven Non-executive Independent shorter notice, due compliance was ensured,
Directors, including a woman Director; as required under the Act and Secretarial
Standard relating to the Board Meetings.

2.4 A system exists for directors to seek and issuance and allotment of Equity Shares and
obtain further information and clarifications various other categories of Securities, in one
on the agenda items before the meetings or more tranches, from time to time, for an
and for their meaningful participation at the aggregate amount up to ` 1,500 crores, to
meetings. the eligible investors.
2.5. The supplementary agenda notes which were 4.1.3. The Company, vide it’s Notice of Postal
circulated less than seven days before the Ballot dated May 21, 2020, had obtained
meetings of the Board and its Committees the approval of the Shareholders by way
were considered with the consent of the of Special Resolution, for the following
members of the Board or Committees, as the purposes:
case may be, as required under SS-1.
 To increase the limit to make loans to
2.6. We note from the minutes that, decisions any person or other bodies corporate;
at the Board meetings held during the year give any guarantee or provide security
were carried through on the basis of majority in connection with a loan to any other
and no dissenting views were expressed by body corporate or person; and acquire
any member of the Board of Directors on any by way of subscription, purchase or
of the subject matters discussed. otherwise securities of any other body
corporate, from ` 10,000 crores to
3. Compliance mechanism
` 20,000 crores, under Section 186 of
There are adequate systems and processes in the Act.
the Company, which commensurate with its
size and operations, to monitor and ensure  To approve divestment/pledge/
compliance with applicable laws, rules, dilution/disposal of the Company’s
regulations and guidelines. investment(s)/asset(s)/undertaking(s).
During the year under review, the Company 4.1.4. During the year, the Company has
has entered into related party transactions,
including but not limited to sale/purchase (a) by way of Public Issue, offered, issued
of the investments to the related parties, in and allotted 20,00,000 Secured
respect of which the Company has complied Re d e e m a b l e N o n - C o nve r t i b l e
with the applicable provisions of the Act and Debentures, of face value of ` 1,000
the Listing Regulations. each (“NCDs”), at par, for an aggregate
amount of ` 200 Crores and these
4. Specific events/actions NCDs have been listed at BSE Limited,
4.1 During the year, the following specific events/ w.e.f. January 11, 2021.
actions having a major bearing on the
(b) the Board of Directors of the Company
Company’s affairs took place, in pursuance
has approved another Public issue
of the above referred laws, rules, regulations
involving issuance of 20,00,000
and standards:
Secured Redeemable Non-Convertible
4.1.1 The Company has allotted 13,89,075 Equity debentures of face value of ` 1,000
Shares of the face value of ` 1 each shares, each (“NCDs”), of different series,
to eligible employees, in pursuance of the at par, with an option to retain
employee stock option schemes of the over-subscription upto ` 200 crores
Company. aggregating to an amount of ` 400
Crores and in pursuance of the same,
4.1.2. As a source of mobilisation of funds for
filed a Prospectus dated March 26,
meeting the operations of the Company and
2021. The issue was opened for
its subsidiaries, the Company had sought
subscription on April 1, 2021 and
the approval of the Shareholders by way of
closed on April 23, 2021. We are
Special Resolution, at the 25th AGM, for offer,

informed by the Company that the For BNP & Associates

NCDs allotted pursuant to this issue Company Secretaries
were listed at BSE Limited, w.e.f. May [Firm Regn. No. P2014MH037400]
3, 2021.
PR No. 637/2019
(c) The Company has from time to time
issued various series of listed/unlisted
Non-convertible Debentures on private
placement basis for an aggregate Avinash Bagul
amount of ` 1,535.22 crores. Partner
FCS No:5578/COP No:19862
4.1.5. The Board of Directors of the Company, at their UDIN : F005578C000447184
meeting held on March 25, 2021, declared an
interim dividend of ` 0.90 per share on the Place : Mumbai
equity shares of the face value of ` 1/- each, Dated : June 11, 2021
and payable to all beneficial members of the
Company, as on the Record Date of April 8, Note: This report is to be read with our letter of
2021. The interim dividend has been paid even date which is annexed as Annexure - A and
within the prescribed time lines. forms an integral part of this report.

Annexure - A
To,
The Members,
Re: Secretarial Audit Report of even date is to be read along with this letter.
1. The Company’s management is responsible 5. We have obtained the management’s

for maintenance of secretarial records and representation about the compliance of
compliance with the provisions of corporate laws, rules and regulations and happening
and other applicable laws, rules, regulations of events wherever required.
and standards. Our responsibility is to
express an opinion on the secretarial records 6. Our Secretarial Audit Report is neither an
produced for our audit. assurance as to the future viability of the
Company nor of the efficacy or effectiveness
2. We have followed such audit practices and with which the management has conducted
processes as we considered appropriate the affairs of the Company.
to obtain reasonable assurance about the
correctness of the contents of the secretarial For BNP & Associates
records. Company Secretaries
[Firm Regn. No. P2014MH037400]
3. We have verified the secretarial records
PR No. 637/2019
furnished to us on a test basis to see whether
the correct facts are reflected therein. We also
examined the compliance procedures followed
by the Company on a test basis. We believe Avinash Bagul
that the processes and practices we followed, Partner
provides a reasonable basis for our opinion. FCS No:5578/COP No:19862
UDIN : F005578C000447184
4. We have not verified the correctness and
appropriateness of financial records and Place : Mumbai
Books of Accounts of the Company. Dated : June 11, 2021

Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Edelweiss Tokio Life Insurance Company Limited
We have conducted the secretarial audit of the (iv) Based on the representation made by the
compliance of applicable statutory provisions and Company and its officers and our verification
the adherence to good corporate practices by of the relevant records on test check basis,
Edelweiss Tokio Life Insurance Company Limited the Company has adequate system and
(hereinafter called the Company). Secretarial process in place for compliance under the
Audit was conducted in a manner that provided following laws applicable specifically to the
us a reasonable basis for evaluating the corporate Company:
conducts/statutory compliances and expressing our
opinion thereon. a) Insurance Act, 1938;
Based on our verification of the Company books, b) Insurance Regulatory and Development
papers, minute books, forms and returns filed and Authority of India Act, 1999 (“IRDAI”)
other records maintained by the Company and and the rules, regulations, circulars,
also the information provided by the Company, guidelines, instructions etc. issued by
its officers, agents and authorized representatives IRDAI;
during the conduct of secretarial audit, we hereby
c) Prevention of Money Laundering Act
report that in our opinion, the Company has,
(PMLA), 2002 as amended from time
during the audit period covering the financial
to time;
year ended on March 31, 2021, complied with
the statutory provisions listed hereunder and also d) Prevention of Money Laundering
that the Company has proper Board-processes and (Maintenance of Records) Rules, 2005
compliance-mechanism in place to the extent, in as amended from time to time; and
the manner and subject to the reporting made
hereinafter: e) IRDAI Corporate Governance
Guidelines.
We have examined the books, papers, minute
books, forms and returns filed and other records We have also examined compliance with the
maintained by the Company for the financial year applicable clauses of the following:
ended on March 31, 2021 according to the relevant
1. Secretarial Standards issued by The Institute
and applicable provisions of:
of Company Secretaries of India; and
(i) The Companies Act, 2013 (the Act) and the
2.
Listing Agreement/Regulations: The
rules made thereunder, as may be applicable;
Company is an unlisted Company and
(ii) Foreign Exchange Management Act, 1999 and therefore compliance with listing agreement/
the rules and regulations made thereunder regulations is not applicable.
to the extent of Foreign Direct Investment;
During the period under review, the Company has
(iii)
The Depositories Act, 1996 and the complied with the provisions of the Act, Rules,
Regulations and Bye-laws framed thereunder; Regulations, Guidelines, Standards, etc. mentioned
herein above.

We further report that the Board of the Company is funds from Shareholders Account to the
duly constituted with proper balance of Executive Policyholders Account.
Director, Non-Executive Directors, Independent
Directors and Woman Director. The changes in (ii) The Board of Directors at their meeting held
the composition of the Board of Directors that on January 27, 2021, inter-alia, approved the
took place during the period under review were re-appointment of Mr. Sumit Rai as Managing
carried out in compliance with the provisions of Director and Chief Executive Officer for a
the Act. During the year under review, Mr. Subhrajit period of 3 years with effect from August 1,
Mukhopadhyay was appointed as an Executive 2021 or the date when the IRDA approves.
Director w.e.f. August 10, 2020.
(iii) The Board of Directors at their meeting held
Adequate notice was given to all the Directors to on March 11, 2021, inter-alia, approved the
schedule the Board meetings, agenda and detailed proposal to issue 9.95% unlisted, unsecured,
notes on agenda were sent at least seven days in subordinated, redeemable, non-convertible
advance, in certain cases meetings were held at a debentures having face value of ` 1000 for an
shorter notice and the Company has complied with aggregate consideration of up to ` 100 crores
the applicable provisions therefor and a system on private placement, subject to approval for
exists for seeking and obtaining further information IRDAI. The application in this regard has been
and clarifications on the agenda items before filed with IRDAI.
the meeting and for meaningful participation &
For M Siroya and Company
deliberations at the meetings.
Company Secretaries
During the period under review, decisions were
carried through unanimously and no dissenting
views were observed, while reviewing the minutes. Mukesh Siroya
Proprietor
We further report that there are adequate systems
FCS No.: 5682
and processes in the Company commensurate with
CP No.: 4157
the size and operations of the Company in order
UDIN: F005682C000343118
to monitor and ensure compliance with applicable
laws, rules, regulations and guidelines. Date : May 19, 2021
Place : Mumbai
We further report that during the audit period,
(i) At the Annual General Meeting held on Note: This Report is to be read with our letter
August 27, 2020, the members approved the of even date which is annexed as ‘Annexure A’
contribution of ` 24,27,305 (in thousands) herewith and forms an integral part of this report.

Annexure A’
To,
The Members,
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the 6. The Secretarial Audit Report is neither an

responsibility of the management of the assurance as to the future viability of the
Company. Our responsibility is to express an Company nor of the efficacy or effectiveness
opinion on these Secretarial records based with which the management has conducted
on our audit. the affairs of the Company.
2. We have followed the audit practices and 7. In view of the ongoing restrictions/
processes as were appropriate to obtain advisories issued by the Government of
reasonable assurance about the correctness India/Maharashtra to contain the spread
of the contents of the Secretarial records. The of Covid-19 pandemic on the movement of
verification was done on test basis to ensure people, we have relied on electronic data for
that correct facts are reflected in Secretarial verification of the Company books, papers,
records. We believe that the processes and minute books, forms and returns filed, and
practices, we followed provide a reasonable other records maintained by the Company.
basis for our opinion.
3. We have not verified the correctness and For M Siroya and Company
appropriateness of financial records and Company Secretaries
Books of Accounts of the Company.
4. Wherever required, we have obtained the

Mukesh Siroya
Management’s representation about the
Proprietor
compliance of laws, rules and regulations and
FCS No.: 5682
happening of events etc.
CP No.: 4157
5. The compliance of the Corporate and other UDIN: F005682C000343118
applicable laws, rules, regulations, standards
is the responsibility of the management. Our
Date : May 19, 2021
examination was limited to the verification of
Place : Mumbai
the procedures on test basis.

Annexure - V
Disclosure pursuant to the Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014
The ratio of the remuneration of each Director to the median employee’s remuneration and
other details in terms of sub-section 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended is as under:
Sr. Disclosure Requirement Disclosure Details

No. Directors Title Ratio
1 Ratio of the Remuneration of Mr. Rashesh Shah Chairman & Managing 10.31
each Director to the median Director
remuneration of the employees of Mr. Venkatchalam Vice Chairman & Executive 8.37
the Company for the financial year Ramaswamy Director
Mr. Himanshu Kaji Executive Director 9.64
Mr. Rujan Panjwani Executive Director 2.02
During the year, the Independent Directors were paid commission of
` 0.50 million each, representing the ratio of 0.45 each.
Directors/ KMP Title % increase in
remuneration
2 Percentage increase in remuneration Mr. Rashesh Shah Chairman & Managing Director -9.27%
of each Director, Chief Financial Mr. Venkatchalam Vice Chairman & Executive -16.82%
Officer, Chief Executive Officer, Ramaswamy Director
Company Secretary or Manager, if
any, in the Financial year Mr. Himanshu Kaji Executive Director -9.63%
Mr. Rujan Panjwani Executive Director -91.96%
There was a increase of -50% in the remuneration (commission) paid
to Mr. P. N. Venkatachalam, Mr. Berjis Desai, Mr. Navtej S. Nandra,
Mr. Kunnasagaran Chinniah and Mr. Biswamohan Mahapatra, the
Independent Directors of the Company during FY 2020-21 as compared
to FY 2019-20*
Mr. S Ranganathan Chief Financial Officer -78.26%
(till October 31,
2020)
Mr. Sarju Simaria Chief Financial Officer Refer Note #
(w.e.f. November 1,
2020)
Mr. B Renganathan Company Secretary -29.26%
3 Percentage increase in the median
remuneration of employees in the -13.46%
Financial year
4 Number of permanent employees 69 permanent employees were on the rolls of the Company as on March
on the rolls of the Company at the 31, 2021
end of the year
5 Average percentile increase The average increase in the remuneration for the managerial personnel
already made in the salaries is -52.50% and for non-managerial personnel is -35.20%
of employees other than the
managerial personnel in the last (The employees joined/left the Company during the financial year
financial year and its comparison 2020-21 are not considered for this purpose)
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
6 Affirmations that the remuneration It is affirmed that the remuneration paid is as per the Remuneration
is as per the Remuneration Policy of Policy of the Company
the Company
*No commission was paid to Mr. Ashok Kini and Dr. Ashima Goyal, Independent Directors of the Company during the financial year 2019-20.
# Mr. Sarju Simaria was appointed as the Chief Financial Officer of the Company during the financial year 2020-21, hence no remuneration was paid during
the financial year 2019-20.
Ms. Vidya Shah, a Non-executive Non-Independent Director was not paid any remuneration during the financial year 2020-21.
For and on behalf of the Board
Rashesh Shah
Chairman & Managing Director
Mumbai, June 11, 2021 DIN: 00008322

Annexure VI
Business Responsibility Report for the year 2020-21

(Pursuant to regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing Regulations”))
Section - A
General Information about the Company
Sr. Particulars Reply

No.
1 Corporate Identity Number (CIN) of the Company L99999MH1995PLC094641
2 Name of the Company Edelweiss Financial Services Limited
3 Registered Office address of the Company Edelweiss House,
Off. C.S.T Road, Kalina,
Mumbai 400 098
4 Website www.edelweissfin.com
5 E-mail ID efsl.shareholders@edelweissfin.com
6 Financial Year reported April 1, 2020 - March 31, 2021
7 Sector (s) that the Company is engaged in Code:
(Industrial activity code-wise) 649 – Investment Banking and Advisory
Services
642 – Holding Company Activities
8 List three key products/services that the Company Investment Banking & Advisory Services
manufactures/provides (as in Balance Sheet)
9 Total number of locations where business activity is
undertaken by the Company
(a) Number of International Locations 6 (Dubai, Hong Kong, Mauritius,
(Provide details of major 5) New York, Singapore and London)
through subsidiaries and associates of
the Company.
(b) Number of National Locations 138 cities through subsidiaries and
associates of the Company.
10. Market served by the Company- Local/State/ The Company serves the Indian markets
National/International and the international markets through
its subsidiaries and associates.
114 | Business Responsibility Report

Section - B
Financial details of the Company
No.
1 Paid-up Capital (as on March 31, 2021) ` 935.80 million
2 Total Turnover/Income ` 1,08,488.50 million (on consolidated basis)
3 Total Profit After Taxes ` 2,539.20 million (on consolidated basis)
4 Total Spending on Corporate Social Responsibility
(CSR) as percentage of profit after tax (%) Please refer CSR Report annexed to the
5 List of activities in which expenditure in 4 above has Board's Report.
been incurred
Section – C
Other Details

No.
1 Does the Company have any Subsidiary Company/ Yes
Companies?
2 Do the Subsidiary Company/Companies participate in Yes
the BR Initiatives of the parent Company? If yes, then
indicate the number of such subsidiary Company(s) The Company is engaged in the Financial
Services.
The Company along with its subsidiaries

carries out the Business Responsibilities
and CSR activities.
3 Do any other entity/entities (e.g., suppliers, We encourage our associates & partners
distributors etc.) that the Company does Business to engage/participate in Business
with, participate in the BR initiatives of the Company? Responsibility (BR) initiatives. We also
If yes, then indicate the percentage of such entity/ endeavour to increase our coverage
entities? [Less than 30%, 30-60%, More than 60%] of our business partners and investee
companies etc. to ensure that fair,
sustainable, and responsible business
practices are followed.

Section - D
Business Responsibility Information
(1) Details of Director/Directors responsible for Business Responsibility

No.
(a) Details of the Director/Director Name: Vidya Shah (DIN: 00274831)
responsible for implementation of the Designation: Non-executive Non-Independent Director,
Business Responsibility Policy/policies Chairperson-ESG Council
(b) Details of the Business Responsibility Telephone No.: + 91 22- 40094400
head e-mail ID: efsl.shareholders@edelweissfin.com
In fulfilling its obligation of BR and the CSR, the Company is guided by Edelweiss Guiding Principles
which are provided in this Annual Report.
Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business
released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These
are as follows:
P1 – Businesses should conduct and govern themselves with Ethics, Transparency and
Accountability.
P2 – Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle.
P3 – Businesses should promote the well-being of all employees.
P4 – Businesses should respect the interests of, and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable and marginalized.
P5 – Businesses should respect and promote human rights.
P6 – Businesses should respect, protect, and make efforts to restore the environment.
P7 – Businesses, when engaged in influencing public and regulatory policy, should do so in

a responsible manner.
P8 – Businesses should support inclusive growth and equitable development. [CSR Policy]
P9 – Businesses should engage with and provide value to their customers and consumers
in a responsible manner.

(a) Details of compliance (Reply in Y/N)
Sr. Questions P-1 P-2 P-3 P-4 P-5 P-6 P-7 P-8 P-9
No.
1 Do you have a policy/policies for each Y N$ Y Y Y Y Y Y Y
principle stated in the NGV?
2 Has the policy being formulated Y N$ Y Y Y Y Y Y Y
in consultation with the relevant
stakeholders?
3 Does the policy conform to any Y N$ Y Y Y Y Y Y Y
national/international standards? If
yes, specify?
(50 words)
4 Has the policy being approved by the Business Responsibility Policy encompassing all
Board? If yes, has it been signed by these principles has been approved. Additionally,
MD/owner/CEO/appropriate Board we have separate policies that cover aspects related
Director? to governance, ethics, code of conduct, employee
practices, environment, human rights etc.
5 Does the Company have a specified The policies have been approved and adopted by the
committee of the Board/Director/ Board/Internal Committee(s)/Managerial Personnel and
Official to oversee the implementation are implemented and reviewed from time to time.
of the policy?
Appropriate steps shall be taken to oversee the
implementation of the policy.
6 Indicate the link for the policy to be The Policy is made available on the website of the
Viewed online? Company at www.edelweissfin.com.
7 Has the policy been formally Yes
Communicated to all relevant internal
and external stakeholders?
8 Does the Company have in-house An Internal Committee has been set up that monitors
structure to implement the policy/ the progress, reviews and implements, various aspects
policies related to environmental social and governance policies.
9 Does the Company have a Grievance Yes
redressal mechanism related to the
policy/policies to address stakeholders’
grievances related to the policy/
policies?
10 Has the Company carried out The Company may take appropriate steps in this regard.
independent audit/evaluation of the
working of this policy by an internal or
external agency?
$: Considering the nature of business of the Company, Principle - 2 may not be strictly applicable. However,
the Company endeavour to comply with all the applicable rules and regulations w.r.t. its services. We
attempt to be transparent, fair in our advice and responsive to customer requirements and feedback.

(b) If answer to the question at serial number 1 against any principle, is “No” Please explain why:
(Tick up to 2 options): Not Applicable
Sr. Questions P-1 P-2* P-3 P-4 P-5 P-6 P-7 P-8 P-9
No.
1 The Company has not understood the
Principles
2 The Company is not at a stage where
it finds itself in a position to formulate
and implement the policies on specified
principles
3 The Company does not have financial
Not Applicable
or manpower resources available for
the task
4 It is planned to be done within next 6
months
5 It is planned to be done within next 1
Year
6 Any other reason (please specify)
* Considering the nature of business of the Company, Principle - 2 may not be strictly applicable. However,
the Company endeavour to comply with all the applicable rules and regulations w.r.t. its services. We
attempt to be transparent, fair in our advice and responsive to customer requirements and feedback.
3. Governance related to BR

No.
1 Indicate the frequency with which Annually
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
2 Does the Company publish a BR or The Company has published an ESG/Sustainability
a Sustainability Report? What is the Report for the FY 2020-21. The same is available on the
hyperlink for viewing this report? How website of the Company
frequently it is published? https://www.edelweissfin.com/investor-relations/

SECTION - E
Principle-wise Performance
Principle 1: B usinesses should conduct and govern themselves with Ethics, Transparency and
Accountability
It is an integral part of the Edelweiss Guiding Principle to conduct the business in a fair and transparent
manner.

No.
1 Does the policy relating to ethics, bribery and The Company has adopted various policies in
corruption cover only the Company? Yes/No. relation to ethics, bribery and corruption viz. Anti
Money Laundering Policy, Anti-Fraud Policy, Anti
Does it extend to the Group/Joint Ventures/ Bribery and Corruption Policy, Whistle Blower
Suppliers/Contractors/NGOs/Others? Policy etc. and the same are applicable to the
Group Companies as well.
2 How many stakeholder complaints have been During the year under review
received in the past financial year and what No. of Complaints/Requests Received: 4
percentage was satisfactorily resolved by the
Resolved: 100% of the Complaints/Requests
management? If so, provide details thereof, in
about 50 words or so.
Principle 2: B
usinesses should provide goods and services that are safe and contribute to sustainability
throughout their life cycle #
#: The Company does not manufacture any goods and products and such no material impacts from
consumption of its products or production of products from a raw material perspective are there.

No.
1 List up to 3 of your products or services whose design has incorporated social
or environmental concerns, risks and/or opportunities.
2 For each such product, provide the following details in respect of resource use
(energy, water, raw material etc.) per unit of product(optional):
(a) Reduction during sourcing/production/distribution achieved since the
previous year throughout the value chain?
(b) Reduction during usage by consumers (energy, water) has been achieved
since the previous year?
3 Does the Company have procedures in place for sustainable sourcing (including
transportation)?
Not Applicable
If yes, what percentage of your inputs was sourced sustainably? Also, provide
details thereof, in about 50 words or so.
4 Has the Company taken any steps to procure goods and services from local
& small producers, including communities surrounding their place of work?
If yes, what steps have been taken to improve their capacity and capability of
local and small vendors?
5 Does the Company have a mechanism to recycle products and waste? If yes
what is the percentage of recycling of products and waste (separately as <5%,
5-10%, >10%). Also, provide details thereof, in about 50 words or so.

Principle 3: Businesses should promote the wellbeing of all employees

No.
1 Please indicate the Total number of employees (including 8,518
subsidiaries and associates)
2 Please indicate the Total number of employees hired 2,353
on temporary/contractual/casual basis. (including
subsidiaries and associates)
3 Please indicate the Number of permanent women 1,965
employees. (including subsidiaries and associates)
4 Please indicate the Number of permanent employees with Not Applicable
disabilities
5 Do you have an employee association that is recognized No
by management.
6 What percentage of your permanent employees is Not Applicable
members of this recognized employee association?
7 Please indicate the Number of complaints relating to The Company does not employ/
child labour, forced labour, involuntary labour, sexual hire child labour, forced labour or,
harassment in the last financial year and pending, as on involuntary labour.
the end of the financial year.
Sr. Category No. of No. of
No. complaints complaints
filed during the pending as
financial year on end of the
financial year
1 Child labour/forced labour/involuntary labour Not Applicable Not Applicable
2 Sexual harassment NIL NIL
3 Discriminatory employment NIL NIL
8 What percentage of your under mentioned employees
were given safety & skill up-gradation training in the last
year?
Every employee of the Company
(a) Permanent Employees
undergoes necessary training.
(b) Permanent Women Employees
(c) Casual/Temporary/Contractual Employees
(d) Employees with Disabilities

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable and marginalized.
As an Edelweiss Guiding Principle the Company focuses on Growth for its stakeholders - clients, employees
and shareholders.

No.
1 Has the Company mapped its internal and external
stakeholders?
2 Out of the above, has the Company identified the
disadvantaged, vulnerable & marginalized stakeholders. Please refer CSR Report annexed to
3 Are there any special initiatives taken by the Company the Board's Report.
to engage with the disadvantaged, vulnerable and
marginalized stakeholders. If so, provide details thereof,
in about 50 words or so.
Principle 5: Businesses should respect and promote human rights

No.
1 Does the policy of the Company on human rights cover Extends to the Company and the
only the Company or extend to the Group/Joint Ventures/ Group.
Suppliers/Contractors/NGOs/Others?
2 How many stakeholder complaints have been received in During the year under review, no
the past financial year and what percent was satisfactorily complaint has been filed with respect
resolved by the management? to human rights violation from any
stakeholder.

Principle 6: Businesses should respect, protect, and make efforts to restore the environment

No.
1 Does the policy related to Principle 6 cover only the Not Applicable
Company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others. (Considering the nature of business
2 Does the Company have strategies/initiatives to address of the Company, principle - 6 may
global environmental issues such as climate change, not be strictly applicable, however
global warming, etc? Y/N. If yes, please give hyperlink for the Company has adopted an ESG
webpage etc. Policy covering environmental
3 Does the Company identify and assess potential aspects relating to reduction of our
environmental risks? Y/N dependence on grid electricity and
4 Does the Company have any project related to Clean increase share of the renewable
Development Mechanism? If so, provide details thereof, sources of energy, reduction of our
in about 50 words or so. Also, if Yes, whether any water consumption, reduction in
environmental compliance report is filed? GHG emissions).
5 Has the Company undertaken any other initiatives on –
There have been no cases of non-
clean technology, energy efficiency, renewable energy, etc.
compliance from CPCB/MPCB during
Y/N. If yes, please give hyperlink for web page etc.
6 Are the Emissions/Waste generated by the Company the financial year.
within the permissible limits given by CPCB/SPCB for the
financial year being reported?
7 Number of show cause/legal notices received from Central
Pollution Control Board (CPCB)/State Pollution Control
Board (SPCB) which are pending (i.e. not resolved to
satisfaction) as on end of Financial Year.
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a
responsible manner

No.
1 Is your Company a member of any trade and chamber or The Company is a member of the
association? If Yes, Name only those major ones that your following chambers and associations:
business deals with. i) Federation of Indian Chambers of
Commerce and Industry
ii) Confederation of Indian Industry
2 Have you advocated/lobbied through above associations Edelweiss group presents its views
for the advancement or improvement of public good? Yes/ regularly on various regulatory
No; changes in the light of the changing
business environment.
if yes specify the broad areas (drop box: Governance and
Administration, Economic Reforms, Inclusive Development
Policies, Energy security, Water, Food Security, Sustainable
Business Principles, Others)

Principle 8: Businesses should support inclusive growth and equitable development
Sr.
Particulars Reply
No.
1 Does the Company have specified programmes/ T h e C S R a c t i v i t i e s / p r o g ra m m e s
initiatives/projects in pursuit of the policy related support inclusive growth and equitable
to Principle 8? development.
If yes details thereof. The Company being in the business of

providing financial services, conducts
various investor awareness programmes
from time to time.
Through our businesses, we also cater to

financing needs of low and middle-income
groups for affordable housing and small
enterprise finance.
Through EdelGive Foundation and our CSR

activities, we primarily work on:
a) Women Empowerment and gender
Equality
b) Education at elementary and early
childhood stage
c) Livelihood initiatives
2 Are the programmes/projects undertaken through The programmes/projects are undertaken
in-house team/own foundation/external NGO/ through EdelGive Foundation - The CSR
government structures/any other organization? arm of the Group which works with various
NGOs across the country
3 Have you done any impact assessment of your Yes, the Company continuously monitors
initiative? and assesses the impact of its CSR initiatives.
4 What is your Company’s direct contribution to Please refer CSR Report annexed to the
community development projects- Amount in INR Board’s Report.
and the details of the projects undertaken.
5 Have you taken steps to ensure that this community Yes.
development initiative is successfully adopted by
the community? Please explain in 50 words, or so. (Please refer CSR Report and the details
that has been published in our ESG/
Sustainability report/the Annual Report of
EdelGive Foundation)

Principle 9: Businesses should engage with and provide value to their customers and consumers in a
responsible manner

No.
What percentage of customer complaints/consumer
1 Nil
cases are pending as on the end of financial year.
Does the Company display product information on
the product label, over and above what is mandated
2 Not Applicable
as per local laws? Yes/No/N.A ./Remarks (additional
information)
Is there any case filed by any stakeholder against
the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
3 No
behaviour during the last five years and pending
as on end of financial year. If so, provide details
thereof, in about 50 words or so.
Did your Company carry out any consumer survey/ Consumer surveys are taken at regular
4
consumer satisfaction trends? intervals.

Rashesh Shah
DIN: 00008322

Corporate Governance Report
Company’s Philosophy on Corporate Governance
At Edelweiss, we strongly uphold good governance practices to promote fairness, transparency,

accountability and integrity. In line with this philosophy, Guiding Principles have been articulated and
these forms integral part of Company’s corporate governance practices. Processes have been designed
to run the businesses responsibly and harmonize diversified interests of various stakeholders thereby
enhancing stakeholder value.
Board of Directors
Composition, Meeting and Attendance
The Board of Directors (the Board) of the Company comprises of Executive and Non-Executive Directors
and the same is in conformity with the SEBI (Listing Obligations & Disclosure Requirements) Regulations,
2015 (the Listing Regulations) and the Companies Act, 2013 (the Act).
The annual calendar of the Board Meetings is agreed upon at the beginning of the year. The agenda for
the Board Meetings is circulated in advance and is backed by comprehensive background information to
enable the Board to take informed decisions. During the financial year 2020-21, the Board met 6 times i.e.
on: May 21, 2020, July 4, 2020, August 27, 2020, October 30, 2020, February 13, 2021 and March 25, 2021.
The names and categories of the Directors on the Board, their attendance at the Board Meetings held during
the financial year 2020-21 and at the last Annual General Meeting (AGM), the number of directorships
and committee positions held by them in other public limited companies and the name of the other listed
entities where he/she is a Director and category of directorships as on March 31, 2021, are as under:
Name and DIN of the Category No. of Attendance No. of Name of other Committee Position*
Directors Board at the directorships Listed entities Member Chairman
Meetings last AGM in other where person
Attended held on Public is Director -
September Limited Category of
28, 2020 Companies$ Directorship
Mr. Rashesh Shah Executive 6 Yes 4 - Nil Nil
[Chairman] (Promoter)
(DIN 00008322)
Mr. Venkatchalam Executive 6 Yes 5 - 2 Nil
Ramaswamy (Promoter)
[Vice Chairman]
(DIN 00008509)
Mr. Himanshu Kaji Executive 6 Yes 1 - 1 Nil
(DIN 00009438)
Mr. Rujan Panjwani Executive 6 Yes 4 - 1 Nil
(DIN 00237366)
Ms. Vidya Shah Non-Executive, 6 Yes 3 - 1 Nil
(DIN 00274831) Non-
Independent
(Promoter)
Mr. P. N. Independent 6 Yes 6 Sundaram 8 2
Venkatachalam Finance
(DIN 00499442) Limited-
Independent
Director

Corporate Governance Report (continued)
Name and DIN of the Category No. of Attendance No. of Name of other Committee Position*
Directors Board at the directorships Listed entities Member Chairman
Meetings last AGM in other where person
Attended held on Public is Director -
September Limited Category of
28, 2020 Companies$ Directorship
Mr. Berjis Desai Independent 6 Yes 8 Refer # 6 2
(DIN 00153675)
Mr. Navtej S. Nandra Independent 6 Yes 3 - 2 Nil
(DIN 02282617)
Mr. Kunnasagaran Independent 5 Yes 5 Nirlon 3 1
Chinniah Limited-
(DIN 01590108) Nominee
Director
Mr. Biswamohan Independent 6 Yes 5 - 3 1
Mahapatra
(DIN 06990345)
Mr. Ashok Kini Independent 5 Yes 3 - 1 1
(DIN 00812946)
Dr. Ashima Goyal Independent 5 Yes 1 - Nil Nil
(DIN 00233635)
Ms. Anita M. Non-Executive,
George^ Non- 2 - - - - -
(DIN 00441131) Independent
$ Only Directorships of public limited companies incorporated in India have been considered and excludes private limited
companies, section 8 companies and foreign companies.
*Only Audit Committee and Stakeholders’ Relationship Committee, in other public limited companies, have been
considered for the Committee position.
# Independent Director on the Board of Deepak Fertilisers and Petrochemicals Corporation Limited, Praj Industries
Limited, Man Infraconstruction Limited, Jubilant Foodworks Limited and also Non-executive Director on the Board of
The Great Eastern Shipping Company Limited.
^Ms. Anita M. George resigned as Director from the Board with effect from July 13, 2020.
Except for Mr. Rashesh Shah and Ms. Vidya Shah, none of the Directors are related to each other.
The Members of the Company at the 25th AGM held on September 28, 2020, approved the re-appointment
of Mr. Rujan Panjwani, as an Executive Director of the Company for a further period of 5 years with effect
from June 24, 2021.
None of the Directors hold office in more than 10 public companies as prescribed under the Act.
No Director holds Directorships in more than 7 listed companies. Further, none of the Non-executive
Directors serve as Independent Director in more than 7 listed companies as required under the Listing
Regulations. The Managing Director does not serve as an Independent Director in any listed company.
None of the Directors on the Board is a member of more than 10 Committees and Chairperson
of more than 5 Committees, across all public limited companies in which he/she is a Director.
Independent Directors are Non-executive Directors as defined under the Listing Regulations and the Act
along with Rules framed thereunder. In terms of the Listing Regulations, the Independent Directors have
confirmed that they are not aware of any circumstance or situation which exists or may be reasonably
anticipated that could impair or impact their ability to discharge their duties.
126 | Corporate Governance Report

Based on the declarations received from the Independent Directors, the Board has confirmed that they meet
the criteria of independence as prescribed under the Listing Regulations and that they are independent of
the management. Further, the Independent Directors have, in terms of Section 150 of the Act read with
Rule 6 of the Companies (Appointment & Qualification of Directors) Rules, 2014, confirmed that they
have enrolled themselves in the Independent Directors’ Databank maintained with the Indian Institute
of Corporate Affairs. In the opinion of the Board, the Independent Directors are persons of integrity and
possess relevant expertise, experience and proficiency as per the Act.
All the directors of the Company have confirmed that they are not disqualified for being appointed as
directors pursuant to Section 164 of the Companies Act, 2013.
M/s. BNP & Associates, Company Secretaries, have issued a certificate certifying 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 Securities and Exchange Board of India (SEBI), the Ministry of Corporate
Affairs and any such statutory authority.
Board skills/expertise/competence matrix

The Board have identified the following parameters with respect to the skill/expertise/competence that are
available with the Board in the context of the business and sector for it to function effectively:
Directors Industry Technical Skills/Experience Behavioural
Knowledge/ Competencies
Experience
Leadership and Mentoring Skills

Financial and Capital Markets
Understanding of laws and
International Experience
Accounting and Finance
Information Technology
Interpersonal Relations
Strategic Management
Legal and Compliance

Risk Management
Governance
regulations
Mr. Rashesh Shah * * * * * * - * * * *

Mr. Venkatchalam Ramaswamy * * * * * * - * * * *
Mr. Himanshu Kaji * * * * * * * * * * *
Mr. Rujan Panjwani * * * * * * - * * * *
Ms. Vidya Shah * * * * - * - * * * *
Mr. P. N. Venkatachalam * * * * * * * - * * *
Mr. Berjis Desai * * * * - * * - * * *
Mr. Navtej S. Nandra * * * - * * - * * * *
Mr. Kunnasagaran Chinniah * * * * * * * * * * *
Mr. Biswamohan Mahapatra * * * * * * * * * * *
Mr. Ashok Kini * * * * * * * - * * *
Dr. Ashima Goyal * * * * * * - - * * *

Committees of the Board:
A) Audit Committee
Meetings held:
During the Financial Year 2020-21, the Committee met 5 times on May 21, 2020; July 4, 2020; August
27, 2020; October 30, 2020 and February 13, 2021.
The Committee comprises of the Independent Directors only. The composition as on March 31, 2021
and attendance during the year ended March 31, 2021:
No. of Meetings
Name of the Member
Attended
Mr. P. N. Venkatachalam – Chairman 5
Mr. Berjis Desai 5
Mr. Biswamohan Mahapatra 5
Mr. Kunnasagaran Chinniah 4
All the members have financial management expertise. The constitution and terms of reference of
the Committee are in compliance with the requirements of the Act and the Listing Regulations.
Brief description of the terms of reference of the Audit Committee inter alia include:
1) Oversight of the Company’s financial reporting process and the disclosure of its financial
information to ensure that the financial statement is correct, sufficient and credible
2) Recommendation for appointment, remuneration and terms of appointment of auditors of

the Company
3) Approval of payment to the statutory auditors for any other service rendered by the statutory
auditors
4) Reviewing, with the management, the annual financial statements and auditor’s report thereon
before submission to the Board for approval with particular reference to:
a. matters required to be included in the director’s responsibility statement to be included

in the Board’s report in terms of clause (c) of sub section3 of the section 134 of the
Companies Act, 2013
b. changes if any, in the accounting policies and practices and reasons for the same
c. major accounting entries involving estimates based on the exercise of judgement by

management
d. significant adjustments made in the financial statements arising out of audit findings
e. compliance with the listing and other legal requirements relating to financial statements
f. disclosure of any related party transactions
g. qualifications in the draft audit report.
5) Reviewing, with the management, the quarterly financial statements before submission to the
Board for approval

6) Evaluation of internal financial controls and risk management systems
7) Reviewing, with the management, performance of statutory auditors and internal auditors,
adequacy of the internal control systems
8) Discussion with internal auditors of any significant findings and follow up thereon
9) Discussion with statutory auditors before the audit commences, about the nature and scope
of audit as well as post audit discussion to ascertain any area of concern
10) To review the functioning of the Whistle Blower/Vigil mechanism
11) Carrying out any other function as is mentioned in the terms of reference of the Audit
Committee.
The Auditors, Internal Auditors and the Chief Financial Officer are invited to attend the meetings of
the Committee. The Company Secretary acts as the Secretary to the Committee.
Mr. P. N. Venkatachalam, the Chairman of the Committee, was present at the last AGM held on
September 28, 2020.
B) Nomination and Remuneration Committee
Meetings held:
During the Financial Year 2020-21, the Committee met 3 times on June 26, 2020; October 30, 2020
and March 25, 2021.
The Committee comprises of the Independent Directors only. The composition as on March 31, 2021
and attendance during the year ended March 31, 2021:
No. of Meetings
Name of the Member
Attended
Mr. Berjis Desai - Chairman 3
Mr. Kunnasagaran Chinniah 3
Mr. Navtej S. Nandra 3
rief description of the terms of reference of the Nomination and Remuneration Committee
B
inter alia includes:
1) Identifying the persons who can become Directors
2) Formulating the criteria for determining the qualifications, positive attributes etc. and
independence of a Director
3) Recommending to the Board a policy relating to the remuneration for the Directors & Key
Managerial Personnel
4) Recommend to the Board, all remuneration, in whatever form, payable to senior management
5) Specify the manner for effective annual evaluation of performance of the Board, its Committees
and individual Directors.
The Company has formulated a Remuneration Policy which is annexed to the Board’s Report.

Board Evaluation
During the year, in accordance with the Board Evaluation Policy and the Guidance Note on Board Evaluation
issued by SEBI, an annual evaluation of its own performance and that of the Committees and Directors
pursuant to the provisions of the Act and the Listing Regulations was carried out by the Board on various
parameters which inter alia included composition, diversity, effectiveness, quality of discussion, contribution
at the meetings, business acumen, strategic thinking, time commitment, relationship with the stakeholders,
corporate governance practices, contribution of the Committees etc.
A separate meeting of the Independent Directors was held wherein the performance of the Non-
Independent Directors, performance of the Board as a whole (including the Committees) and also that of
the Chairman in terms of the provisions of the Act, the Listing Regulations and the Guidance Note issued
by SEBI in this regard was discussed.
Familiarisation Programme
The Independent Directors are familiarised with their roles, rights, responsibilities etc. in relation to the
nature of the financial services sector and the business model of the Company. The details are uploaded
on the website of the Company at: www.edelweissfin.com.
Remuneration to the Directors
The Company pays sitting fee of ₹ 20,000 per meeting to the Independent Directors for attending the
meetings of the Board and the Committees thereof. The commission is paid to the Non-executive Directors
inter alia based on their attendance, contribution etc. at the Board and various Committee Meetings.
The details of the remuneration paid and shareholding of the Directors during the financial year ended
March 31, 2021 are as under:
(Amount ₹ in million)
Name of the Director Salary Perquisites Sitting Commission Total No. of Equity
Fees Shares held*
Mr. Rashesh Shah 11.48 - - - 11.48 14,56,01,730
Mr. Venkatchalam Ramaswamy 9.42 0.04 - - 9.46 5,81,26,560
Mr. Himanshu Kaji 10.84 0.04 - - 10.88 38,51,500
Mr. Rujan Panjwani 2.25 - - - 2.25 1,19,51,380
Ms. Vidya Shah - - - - - 3,10,31,200
Mr. P. N. Venkatachalam - - 0.36 0.50 0.86 2,70,000
Mr. Berjis Desai - - 0.50 0.50 1.00 -
Mr. Navtej S. Nandra - - 0.28 0.50 0.78 79,74,180
Mr. Kunnasagaran Chinniah - - 0.12 0.50 0.62 2,00,000
Mr. Biswamohan Mahapatra - - 0.34 0.50 0.84 -
Mr. Ashok Kini - - 0.12 0.50 0.62 -
Dr. Ashima Goyal - - 0.12 0.50 0.62 -
* Shareholding as on March 31, 2021. Shares held singly or as a first shareholder are only considered.
Ms. Anita M. George resigned as Director from the Board with effect from July 13, 2020. No remuneration
was paid to her.
Service contract of the Managing Director and the Executive Directors is as approved by the Members and
notice period is as per the Rules of the Company. Severance fees – NA.

C) Stakeholders’ Relationship Committee
Meetings Held:
During the financial year 2020-21, the Committee met once on February 12, 2021.

The composition as on March 31, 2021 and attendance during the year ended March 31, 2021:
No. of Meetings
Name of the Member
Attended
Mr. Berjis Desai – Chairman 1
Mr. Kunnasagaran Chinniah -
Mr. Venkatchalam Ramaswamy 1
As on date of this Report, Mr. Tarun Khurana is the Company Secretary & Compliance Officer of the
Company.
Based on the report received from the Registrar & Share Transfer Agents, the Company received
4 requests/complaints during the year ended March 31, 2021 which were satisfactorily resolved/
replied. As on March 31, 2021 there were no pending requests/complaints.
Risk Management
The Risk Committee has framed and implemented a Risk Management Framework and Strategy.
The Company did not have any exposure in commodity price and hedging activities during the year
2020-21.
General Body Meetings
The date, time and venue of the last three AGMs are given below:
Financial Date Time Venue No. of Special

Year Resolutions
passed
2019-2020 September 28, 2020 4.00 p.m. Held through Video Conferencing/ 2
Other Audio Visual Means
2018-2019 July 25, 2019 3.00 p.m. Edelweiss House, Off C.S.T. Road, 2
Kalina, Mumbai- 400 098
2017-2018 July 26, 2018 1.30 p.m. Edelweiss House, Off C.S.T. Road, 2
Kalina, Mumbai- 400 098

Vide Postal Ballot Notice dated May 21, 2020, the Company had sought the approval of the Members
by way of Special Resolutions for:
i) increasing the limit to make loans and investments, give guarantee and provide security from
` 10,000 crores to ` 20,000 crores; and
ii) divestment/pledge/dilution/disposal of the Company’s investment(s)/assets/undertaking(s).
The aforesaid Resolutions were passed on June 21, 2020.
The Postal Ballot exercise was conducted by the Scrutinizer, Mr. B. Narasimhan, M/s. BN & Associates,
Company Secretaries.

Details of Voting Pattern for above mentioned Resolutions are as under:
Sr. Resolution(s) Votes cast in favour Votes cast against

No. Number % Number %
1 Increase in the limit to make loans and 58,40,90,796 85.09 10,23,77,295 14.91
investments, give guarantee and provide
security from ` 10,000 crores to ` 20,000
crores;
2 Approval of divestment/pledge/dilution/ 54,28,65,966 79.12 14,32,60,249 20.88
disposal of the Company’s investment(s)/
asset(s)/undertaking(s).
For further details please visit the website of the Company at www.edelweissfin.com
Resolution, if any, to be passed through Postal Ballot during the current financial year will be taken
up as and when necessary. The Company conducts the Postal Ballot in the manner provided in
Section 110 of the Act read with the Rules made thereunder and other applicable statutes, if any,
for conducting the Postal Ballot.
Means of Communication
The financial results, press releases and the presentation made to the Investors/Analysts
are submitted to the Stock Exchanges and also uploaded on the website of the Company at
www.edelweissfin.com. The financial results are also published in the newspapers.
I. General Shareholder Information

i. AGM: Date, time and Friday, September 3, 2021 at 4 p.m. IST through
venue/mode: Video Conferencing/Other Audio Visual Means (VC/OAVM)
ii. Financial Year: April 1, 2020 to March 31, 2021
iii. Book Closure dates: August 28, 2021 to September 2, 2021 (both days inclusive)
iv. Dividend payment date: September 7, 2021 to September 16, 2021
II. Listing of Securities on Stock Exchanges:
a. Equity Shares
The Equity Shares of the Company are listed on:
Sr. Name of the Stock Address of the Stock Trading Symbol
No. Exchange Exchange
i) BSE Limited (BSE) P J Towers, BSE – 532922
Dalal Street, Fort,
Mumbai - 400 001.
ii) National Stock Exchange Exchange Plaza, NSE – EDELWEISS
of India Limited (NSE) Bandra Kurla Complex,
Bandra (E),
Mumbai – 400 051.
The Company has paid the listing fees to the Stock Exchanges for the financial year 2021-22.
ISIN with National Securities Depository Limited and Central Depository Services (India)
Limited: INE532F01054

b. Non-convertible Debentures
The Company has issued secured Non-convertible Debentures (NCDs) on private
placement and through public issuances. Some of the NCDs are listed on BSE.
The Company has paid the listing fees to BSE for the financial year 2021-22.
Debenture Trustee:
The details of the Debenture Trustees for the NCDs issued by the Company are given
below:
Beacon Trusteeship Limited Catalyst Trusteeship Limited

4 C&D, Siddhivinayak Chambers, Windsor, 6th Floor, Office No. 604,
Gandhi Nagar, Opp. MIG Cricket Club C.S.T. Road, Kalina,
Bandra (East), Santacruz (East),
Mumbai – 400 051 Mumbai – 400 098
Tel.: +91 22 26558759 Tel.: +91 22 49220555
Email: compliance@beacontrustee.co.in Email: dt.mumbai@ctltrustee.com
Website: www.beacontrustee.co.in Website: www.catalysttrustee.com
III. Market Price Data

Stock Market price data for the financial year 2020-21 and high/low of market price of
the Company’s shares traded at BSE and NSE during each month in the financial year ended
March 31, 2021 are as under:
BSE NSE
Month High Low No. of shares High Low No. of shares
(₹) (₹) traded (₹) (₹) traded
Apr-20 44.15 33.55 23,86,181 44.35 33.50 3,52,09,502
May-20 48.75 34.60 20,18,115 48.65 34.20 3,31,88,324
Jun-20 62.65 40.55 94,23,114 62.80 40.55 5,26,80,692
Jul-20 83.45 54.70 1,02,96,592 82.90 54.65 6,93,72,269
Aug-20 87.40 71.80 39,49,693 86.90 71.75 3,68,37,638
Sep-20 81.25 55.40 89,67,482 81.30 55.45 3,07,46,247
Oct-20 65.90 55.00 16,03,361 66.30 54.90 1,85,17,177
Nov-20 69.95 50.00 35,86,919 70.00 49.95 5,74,31,980
Dec-20 83.95 65.65 38,90,764 83.80 65.75 3,97,08,087
Jan-21 72.30 61.60 18,64,645 72.35 61.20 1,72,54,668
Feb-21 72.80 61.30 94,38,549 72.80 61.75 6,20,84,253
Mar-21 91.70 63.50 1,11,99,850 91.80 63.30 13,07,70,849

IV. Performance of share price in comparison with the broad – based indices viz., NSE Nifty &
BSE Sensex:
Price Comparison with S&P BSE Sensex

90.00 55000.00
80.00 50000.00
70.00 45000.00
60.00 40000.00
50.00 35000.00
40.00 30000.00
30.00 25000.00
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
EDELWEISS S&P BSE SENSEX
Price Comparison with NIFTY50

90.00 16500.00
80.00 15000.00
70.00 13500.00
60.00 12000.00
50.00 10500.00
40.00 9000.00
30.00 7500.00
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
EDELWEISS NIFTY50
Price: Average of High & Low
V. Registrar & Share Transfer Agent:
a. Equity Shares

Link Intime India Private Limited
C 101, 247 Park, L.B.S Marg,
Vikhroli (West),
Mumbai - 400 083.
Tel: +91 22 4918 6270
Fax: +91 22 4918 6060
e-mail: rnt.helpdesk@linkintime.co.in
Website: www.linkintime.co.in

b. Non-Convertible Debentures
Link Intime India Private Limited KFin Technologies Private Limited

C 101, 247 Park, Selenium Tower B, Plot 31-32,
L.B.S Marg, Financial District, Nanakramguda,
Vikhroli (West), Serilingampally,
Mumbai - 400 083 Hyderabad - 500 032
Tel: +91 22 4918 6270 Tel: +91 40 6716 2222
Fax: +91 22 4918 6060 Fax: +91 40 2343 1551
Email: rnt.helpdesk@linkintime.co.in Email: einward.ris@kfintech.com
Website: www.linkintime.co.in Website: www.kfintech.com
VI. Share Transfer System: The Company’s shares are compulsorily traded in electronic form in
demat mode on BSE and NSE. 99.94% of the outstanding equity shares of the Company are held
in demat mode. Transfer of equity shares in electronic form are effected through the depositories
without any involvement of the Company.
VII. Distribution of shareholding as on March 31, 2021

No. of Equity Shares No. of % of Share Total No. of % of Shares
Shareholders holders shares held held
1 - 500 1,53,661 88.2308 164,27,771 1.7555
501 - 1000 9,127 5.2406 72,97,147 0.7797
1001 - 2000 5,071 2.9117 77,16,768 0.8246
2001 - 3000 1,836 1.0542 47,07,620 0.5031
3001 - 4000 861 0.4944 30,96,422 0.3309
4001 - 5000 763 0.4381 36,20,475 0.3869
5001 - 10000 1,265 0.7264 92,57,514 0.9893
10001 and above 1,574 0.9038 88,36,74,360 94.4300
Total 1,74,158 100 93,57,98,077 100
Shareholding Pattern as on March 31, 2021

Sr. Category No. of Shares % of Holding
No.
1) Promoters and Promoters Group 307,684,490 32.88
2) Mutual Funds/FIs/Banks/Insurance Companies 42,220,462 4.51
3) FII’s/FPI’s 300,517,094 32.11
4) NRIs/Foreign Nationals/Foreign Bodies Corporate 26,691,310 2.85
5) Public and Others 213,787,941 22.85
6) Non Promoter- Non Public 44,896,780 4.80
Total 93,57,98,077 100
VIII. Dematerialisation of shares: As on March 31, 2021, 93,52,16,967 equity shares representing
99.94% of the outstanding equity shares of the Company were held in dematerialised form and
5,81,110 equity shares representing 0.06% of the outstanding equity shares of the Company
were held in physical form. At the end of each quarter, reconciliation of share capital audit
is conducted by a Practicing Company Secretary to reconcile the total issued capital, listed
capital and capital held by the Depositories in dematerialised form and is submitted to the
stock exchanges.
IX. Outstanding GDRs/ADRs/Warrants or any convertible instruments, conversion date and

likely impact on equity:
The Company has not issued GDRs/ADRs/Warrants or any other instrument convertible into equity.

X. Details of equity shares lying in the suspense account pursuant to the Listing Regulations:
Sr. Particulars Details

No. No. of No. of
Shareholders equity shares
1) Aggregate number of shareholders and the outstanding 94 7,530
shares in the suspense account lying at the beginning
of the year
2) Number of shareholders who approached the - -
Company for transfer of shares from the suspense
account during the year
3) Number of shareholders to whom shares were - -
transferred from the suspense account during the year
4) Aggregate number of shareholders and the 94 7,530
outstanding shares in the suspense account lying at
the end of the year
The voting rights on the above shares shall remain frozen till the rightful owner of such shares
claims the same.
XI. Plant locations : Not Applicable
XII. Credit ratings : The credit ratings obtained by the Company during the year 2020-21 are as
under:
Rating Rating Instruments Date of revision Revised Rating

agency (if any)
Brickwork BWR AA Non-convertible November 9, 2020 BWR AA-
Rating Outlook: Negative Debentures Outlook: Stable
BWR PP-MLD AA- Principal Protected - -
Outlook: Stable Market Linked
Debentures
CARE CARE A+ Non-convertible - -
Outlook: Stable Debentures
CARE A1+ Short term borrowing - -
CRISIL CRISIL A1+ Short term borrowing - -
Acuite ACUITE AA Non-convertible - -
Outlook: Negative Debentures
Other Disclosures
i. The Company did not enter into any materially significant related party transactions having
a potential conflict with the interest of the Company at large. Transactions with the related
parties are disclosed in the financial statements.
ii. The financial statements (both consolidated and standalone) have been prepared in accordance
with the applicable Accounting Standards.
iii. SEBI had passed an Adjudication Order dated March 31, 2016 (the Order), in the matter of IPO
of Electrosteel Steels Limited, levied a penalty of ` 1 crore on the Company, along with other
two Merchant Bankers (the Merchant Bankers), which was to be paid jointly and severally.
The Merchant Bankers had filed an Appeal before Securities Appellate Tribunal (SAT) against
the Order. SAT vide its order dated November 14, 2019, had reduced the penalty amount from
` 1 crore to ` 50 lakhs. The penalty of ` 50 lakhs imposed on the Merchant Bankers was paid
jointly by the Merchant Bankers out of which the Company has paid ` 16.67 lakhs towards its
share on December 3, 2019.

iv. The Company has a Whistle Blower Policy/Vigil Mechanism to report concerns about unethical
behaviour, actual or suspected fraud or violation of our code of conduct and confirms that no
personnel have been denied access to the Audit Committee.
v. Code for Prohibition of Insider Trading of the Company, the Policy for determining
Material Subsidiaries and the Policy on Related Party Transactions are available at:
www.edelweissfin.com.
vi. There have been no instances where the Board has not accepted recommendation of any
Committee of the Board, during the financial year.
vii. The statutory auditors of the Company, M/s. S. R. Batliboi & Co, LLP, the Auditors were paid a
consolidated amount of ` 10.76 crores by the Company and its subsidiaries for all the services
provided by them.
viii. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention,

Prohibition and Redressal) Act, 2013:
a) Number of complaints filed during the Financial Year: Nil
b) Number of complaints disposed of during the Financial Year: Nil
c) Number of complaints pending as on end of the Financial Year: Nil.
ix. The Company has complied with the corporate governance requirements as prescribed in
Regulations 17 to 27, 46(2) (b) to (i) and Schedule V of Chapter IV of the Listing Regulations.
x. The Company has adopted the discretionary requirements as specified in Part E of

Schedule II - The financial statements are accompanied with an unmodified audit report.
xi. CEO/CFO Certification
The CEO and the CFO have certified to the Board, the requirements of the Listing Regulations,
with regard to financial statements.
xii. Compliance Certificate
Pursuant to the Listing Regulations, a certificate issued by M/s. BNP & Associates, Company
Secretaries, certifying the compliance by the Company with the provisions of the Corporate
Governance forms part of this Report.
Address for correspondence:
For any assistance, request or instruction regarding transfer or transmission of securities,

dematerialisation of securities, change of address, non-receipt of annual report, dividend warrant
and any other query relating to the securities of the Company, the investors may write to:
The Company Secretary Link Intime India Private Limited KFin Technologies Private Limited
Edelweiss Financial Services Limited C 101, 247 Park, Selenium Tower B,
Edelweiss House, L.B.S Marg, Plot 31-32, Financial District,
Off C.S.T. Road, Vikhroli (West), Nanakramguda, Serilingampally,
Kalina, Mumbai – 400 098 Mumbai - 400 083 Hyderabad-500 032
Tel: +91 22 4009 4400 Tel: +91 22 4918 6270 Tel: +91 40 6716 2222
Fax: +91 22 4086 3610 Fax: +91 22 4918 6060 Fax: +91 40 2343 1551
Email: efsl.shareholders@edelweissfin.com Email: rnt.helpdesk@linkintime.co.in Email: einward.ris@kfintech.com
Website: www.edelweissfin.com Website: www.linkintime.co.in Website: www.kfintech.com

eclaration by the Chairman & Managing Director under SEBI (Listing Obligations & Disclosure
D
Requirements) Regulations, 2015 regarding adherence to the Edelweiss Code of Conduct
In accordance with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, it is hereby
confirmed that for the financial year ended March 31, 2021, the Directors and the Senior Management
Personnel of the Company have affirmed compliance with the Edelweiss Code of Conduct.
For Edelweiss Financial Services Limited
Rashesh Shah
DIN: 00008322

CERTIFICATE OF COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE
To
The Members of
We have examined the compliance of conditions of Corporate Governance by Edelweiss Financial Services
Limited (“the Company”), for the financial year ended March 31, 2021, as prescribed in the 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 (the Listing Regulations).
We state that the compliance of conditions of Corporate Governance is the responsibility of the management
and our examination was limited to the procedures and implementation thereof, adopted by the Company
for ensuring the compliance of the conditions of 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 aforesaid
provisions of the Listing Regulations.
We further state that such compliance is neither an assurance as to the future viability of the Company nor
the efficiency or the effectiveness with which the management has conducted the affairs of the Company.
For BNP & Associates

Company Secretaries
[Firm Regn. No. P2014MH037400]
PR No. 637/2019
Name: Avinash Bagul

Partner
FCS No: 5578/COP No:19862
UDIN: F005578C000447239
Place : Mumbai
Date : June 11, 2021

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140 | Consolidated Financial Statements

Consolidated Financial Statements
for the year ended 31 March 2021

Independent Auditor’s Report
To the Members of Edelweiss Financial Services Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Edelweiss Financial Services Limited (hereinafter referred
to as “the Holding Company”), its subsidiaries and trusts (the Holding Company, its subsidiaries and its trusts together referred to as
“the Group”) and its associate comprising of the consolidated Balance sheet as at March 31 2021, the consolidated Statement of Profit
and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the consolidated Statement of Changes
in Equity for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as “the Consolidated Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports
of other auditors on separate financial statements and on the other financial information of the subsidiaries, trusts and associate, the
aforesaid Consolidated Financial Statements give the information required by the Companies Act, 2013, as amended (“the Act”) in
the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the
consolidated state of affairs of the Group and its associate as at March 31, 2021, their consolidated profit including other comprehensive
loss, their consolidated cash flows and the consolidated statement of changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Consolidated Financial Statements in accordance with the Standards on Auditing (SAs), as specified under
section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements’ section of our report. We are independent of the Group and associate in accordance with the
‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Financial Statements.
Emphasis of Matter
We draw attention to Note 57 to the Consolidated Financial Statements, which describes the economic and social disruption as a result
of COVID-19 pandemic of the Group’s business and financial metrics including the Group’s estimates of impairment of loans, financial
assets, investment properties, investments, intangible assets (including goodwill) and in case of life insurance business, estimate of
claims which are highly dependent on uncertain future developments.
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated
Financial Statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the
Consolidated Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor’s responsibilities for the audit of the Consolidated Financial Statements section of our
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond
to our assessment of the risks of material misstatement of the Consolidated Financial Statements. The results of audit procedures
performed by us and by other auditors of components not audited by us, as reported by them in their audit reports furnished to us by
the management, including those procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying Consolidated Financial Statements.

Independent Auditor’s Report (Continued)
Key audit matters How our audit addressed the key audit matter
Impairment of receivables from financing and other business
(as described in note 5.6, 13, 13.1, 14, 14.1 & 56.7 of the Consolidated Financial Statements)
The Group’s impairment provision for receivables from financing The audit procedures, including those reported in the auditor’s
business is based on the expected credit loss approach laid down report of respective subsidiary companies, comprised the following:
under Ind AS 109. a) Read and assessed the Group’s accounting policy for impairment
Ind AS 109 requires the Group to provide for impairment of its of financial assets and its compliance with Ind AS 109 and the
financial assets as at the reporting date using the expected credit governance framework approved by the Board of Directors
loss (ECL) approach. ECL involves an estimation of probability- pursuant to Reserve Bank of India guidelines issued on March
weighted loss on financial instruments over their life, considering 13, 2020.
reasonable and supportable information about past events, b) Read and assessed the Group’s policy with respect to OTR and
current conditions, and forecasts of future economic conditions tested the implementation of such policy on a sample basis.
which could impact the credit quality of the Group’s financial
assets (loan portfolio). c) Tested the design and operating effectiveness of the controls for
staging of loans based on their past-due status. Tested samples of
In the process, a significant degree of judgement has been applied performing (stage 1) loans to assess whether any loss indicators
by the management for: were present requiring them to be classified under stage 2 or 3.
a) Staging of financial assets (i.e. classification in ‘significant d) Performed procedures to test the inputs used in the ECL
increase in credit risk’ (“SICR”) and ‘default’ categories); computation, on a sample basis.
b) Grouping of the loan portfolio under homogenous pools in e) Tested assumptions used by the management in determining
order to determine probability of default on a collective basis; the overlay for macro-economic factors (including COVID-19
c) Assigning internal rating grades to customers for which pandemic).
external rating is not available f) Assessed the additional considerations applied by the
d) Calibrating external ratings-linked probability of default to management for staging of loans as SICR or default categories in
align with past default rates view of Company’s policy on OTR.
e) Applying assumptions regarding the probability of various g) Tested the arithmetical accuracy of computation of ECL provision
scenarios and discounting rates for different loan products performed by the Company in spreadsheets.
f) Estimation of management overlay for macro-economic factors h) Assessed disclosures included in the Consolidated Financial
bearing a correlation with the credit quality of the loans. Statements in respect of expected credit losses including the
Further, pursuant to the “Resolution Framework for COVID-19- specific disclosures made with regards to the management’s
related Stress” issued by RBI on August 6, 2020, the subsidiary evaluation of the uncertainties arising from COVID-19 and its
Companies has offered a one-time restructuring (“OTR”) facility impact on ECL estimation.
to borrowers impacted by COVID-19 pandemic. Such restructured
loans have been classified into various stages and provided for
based on subsidiary companies’ management’s assessment of
changes in credit risk of such loans since initial recognition.
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 COVID-19 pandemic. In
accordance with the guidance in Ind AS 109, the management
overlay estimate takes into account reasonable and supportable
information.
In view of such high degree of management’s judgement involved
in estimation of ECL, accentuated by the COVID-19 pandemic, it
is considered as a key audit matter.

IT systems and controls
The reliability and security of IT systems play a key role in The audit procedures assisted by our IT specialists, including those
the financial reporting process of the Group. The Group’s reported in the auditor’s report of respective subsidiary companies,
key financial accounting and reporting processes are highly comprised the following:
automated, whereby any gaps in the IT control environment
a) Tested the design and operating effectiveness of the Company’s IT
could result in a material misstatement of the financial
access controls over the information systems that are important
accounting and reporting records.
to financial reporting and various interfaces, configuration and
Therefore, the assessment of the general IT controls and the other identified application controls.
application controls specific to the accounting and preparation
b) Tested IT general controls (logical access, changes management
of financial information is considered to be a key audit matter.
and aspects of IT operational controls). This included testing
requests for access to systems were reviewed and authorized.
c)
Tested the periodic review of access rights. Also tested requests
of changes to systems for approval and authorization.
d) In addition to the above, tested the design and operating
effectiveness of certain automated controls that were considered
as key internal controls.
e) Tested the design and operating effectiveness of compensating
controls in case deficiencies were identified and, where necessary,
extended the scope of our substantive audit procedures.
Valuation of Investments in Security Receipts (SR) for Edelweiss Assets Reconstruction Company Limited
(as described in note 5.11, 14 and 55 of the Consolidated Financial Statements)
In the Group’s financial statements, total investment in SR The audit procedures, including those reported in the auditor’s
amounts to Rs. 37,478.90 million as disclosed in the Consolidated report of a subsidiary company, comprised the following:
Financial Statements.
a) Obtained and read the financial statements of a subsidiary
These investments are classified as fair value through the profit Company to identify whether accounting policies and disclosure
and loss. In accordance with Ind AS 113 Fair Value measurement for valuation of Investments in Security Receipts and its
(Ind AS 113), the objective of a fair value measurement is to compliance with Ind AS 109 are included in the consolidated
estimate the price at which an orderly transaction to sell the financial statement of the Group.
asset or to transfer the liability would take place between
b) Audit procedures included an assessment of internal controls over
market participants at the measurement date under current
measurement of fair value and evaluating the methodologies,
market conditions.
inputs, judgments made and assumptions used by management
The fair value of SRs is determined through discounted cash in determining fair values.
flow method which involves management judgement using level
c) Tested the operating effectiveness of the controls for the purpose
3 inputs such as projection of future cash flows and expenses.
of fair valuation of security receipts.
Further, the recoverability from the underlying assets of SRs could
d) Evaluated rationale of the models and accounting treatment
be impacted due to the COVID-19 situation. The management
applied. Compared observable inputs against independent
has done an assessment to ascertain future recoverability
sources and externally available market data for sample cases.
estimates of the underlying assets. In making these assessments,
the management has used several estimates, assumptions and e) Performed testing on a sample basis of key inputs as mentioned
sources of information (both internal and external) available as above to validate the reasonableness of the input values.
at the date of these financial statements. These assumptions, f) Involved our valuation specialists for the understanding the
estimates and information used by the management have an valuation process and test the fair valuation of sample cases.
inherent uncertainty of the impact of COVID-19 and the actual
results may differ from the estimates and assumptions made.

Given fair valuation of investments is significant to the g) Compared the rating provided by independent rating agencies
Consolidated Financial Statements, the degree of management’s with fair valuation determined by the Company.
judgement involved in the estimate and uncertainty of impact
h) Assessed the management’s assessment process to ascertain
of COVID-19 on the recoverability of the SRs, any error in
the impact of COVID-19 on the future recoverability estimates
the estimate could lead to material misstatement in the
of the SRs along with key inputs used and judgements made. On
Consolidated Financial Statements of the Group. Accordingly,
a sample basis tested the assumptions and inputs used for this
we have considered this area as a key audit matter.
assessment with the help of our valuation experts. The future
recoverability estimates are subject to significant uncertainty and
the actual results may vary from the assumptions and estimates
as events unfold.
i) Assessed disclosures included in the standalone Financial
Statements a subsidiary Company with respect to such fair
valuation.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Board report, but does not include the Consolidated Financial Statements and our auditor’s report thereon, which we
obtained prior to the date of this auditors report, and the Annual report, which is expected to me made available to us after that date.
Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information and, in doing
so, consider whether such other information is materially inconsistent with the Consolidated Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those Charged with Governance.
Responsibilities of Management for the Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these Consolidated Financial
Statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated cash flows and consolidated statement of changes in
equity of the Group including its associate in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. The respective Board of Directors of the companies included in the Group and of its associate are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group
and of its associate and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Consolidated Financial Statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated
Financial Statements by the Directors of the Holding Company, as aforesaid.

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

e communicate with those charged with governance of the Holding Company and such other entities included in the Consolidated
W
Financial Statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
e also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
W
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
F rom the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the Consolidated Financial Statements for the financial year ended March 31, 2021 and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
(a) We did not audit the financial statements and other financial information, in respect of:
• 28 subsidiaries, whose financial statements include total assets of Rs. 1,32,737.46 million as at March 31, 2021 and total
revenues of Rs. 30,334.35 million and net cash inflow of Rs. 195.10 million for the year ended on that date. These financial
statement and other financial information have been audited by other auditors, which financial statements, other financial
information and auditor’s reports have been furnished to us by the management;
• 7 subsidiaries, whose financial statements include total revenues of Rs. 4,762.49 million and total net loss after tax of Rs.
94.80 million for the period from April 1, 2020 to March 26, 2021, as considered in the consolidated financial statement,
whose financial statements, other financial information have been audited by other auditors and whose reports have been
furnished to us by the Management;
• 6 companies forming part of the Group, whose statements include Group’s share of net loss after tax of Rs. 3.52 million for
the period from March 27, 2021 to March 31, 2021, as considered in the consolidated financial statement, whose financial
statements, other financial information have been audited by other auditors and whose reports have been furnished to us
by the Management.
Our opinion on the Consolidated Financial Statements, in so far as it relates to the amounts and disclosures included in respect
of these subsidiaries and 6 companies, and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates
to the aforesaid subsidiaries and 6 companies, is based solely on the report(s) of such other auditors.
(b) The actuarial valuation of liabilities of Edelweiss Tokio Life Insurance Company Limited (ETLIFE) for life policies in force and for
policies in respect of which premium has been discontinued but liability exists as at March 31, 2021 is the responsibility of ETLIFE’s
Appointed Actuary. The actuarial valuation of these liabilities for life policies in force and for policies in respect of which premium
has been discontinued but liability exists as at March 31, 2021 has been duly certified by the ETLIFE ‘s Appointed Actuary and in
his opinion, the assumptions for such valuation are in accordance with Ind AS 104 “Insurance Contracts”, Ind AS 109 “Financial
Instruments”, the guidelines and norms issued by the Insurance Regulatory and Development Authority of India (‘IRDAI’) and
the Institute of Actuaries of India in concurrence with IRDAI. The auditors have relied upon the ETLIFE’s Appointed Actuary’s
certificate for expressing their conclusion in this regard.

(c) The actuarial valuation of liabilities Edelweiss General Insurance Company Limited (EGICL) for Incurred But Not Reported and
Incurred But Not Enough Reported claims of EGICL as at March 31, 2021 is the responsibility of EGICL’s Appointed Actuary. The
actuarial valuation of these liabilities has been duly certified by the EGICL’s Appointed Actuary and in his opinion, the assumptions
for such valuation are in accordance with Ind AS 104 “Insurance Contracts”, the guidelines and norms issued by the IRDAI and the
Institute of Actuaries of India in concurrence with IRDAI. The auditors have relied on the EGICL’s Appointed Actuary’s certificate
for expressing their conclusion in this regard.
Our opinion above on the Consolidated Financial Statements, and our report on Other Legal and Regulatory Requirements below, is
not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and
the financial statements and other financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditors on separate
financial statements and the other financial information of subsidiaries and associate, as noted in the ‘other matter’ paragraph we
report, to the extent applicable, that:
(a) We/the other auditors whose report we have relied upon have sought and obtained all the information and explanations which
to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Consolidated Financial
Statements;
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the financial
statements have been kept so far as it appears from our examination of those books and reports of the other auditors;
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of Other Comprehensive
Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity dealt with by this Report are
in agreement with the books of account maintained for the purpose of preparation of the Consolidated Financial Statements;
(d) In our opinion, the aforesaid Consolidated Financial Statements comply with the Accounting Standards specified under Section
133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the mail confirmation received from the directors of the Holding Company as on March 31, 2021 taken on record
by the Board of Directors of the Holding Company and the reports of the statutory auditors who are appointed under Section
139 of the Act, of its subsidiary companies and associate companies, none of the directors of the Group’s companies and its
associate, incorporated in India, is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164
(2) of the Act;
(f) With respect to the adequacy and the operating effectiveness of the internal financial controls with reference to Consolidated
Financial Statements of the Holding Company and its subsidiary companies and associate companies, incorporated in India, refer
to our separate Report in “Annexure 1” to this report;
(g) In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries and associate, the
managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Holding Company, its subsidiaries
and associate incorporated in India to their directors in accordance with the provisions of section 197 read with Schedule V to
the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to
us and based on the consideration of the report of the other auditors on separate financial statements as also the other financial
information of the subsidiaries and associate, as noted in the ‘Other matter’ paragraph:

i. The Consolidated Financial Statements disclose the impact of pending litigations on its consolidated financial position of the
Group and its associate in its Consolidated Financial Statements – Refer Note 50.1 to the Consolidated Financial Statements;
ii. Provision has been made in the Consolidated Financial Statements, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts – Refer Note 71 to the Consolidated
Financial Statements in respect of such items as it relates to the Group and its associate;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Holding Company, its subsidiaries and associate, incorporated in India during the year ended March 31, 2021.
For S.R. Batliboi & Co. LLP

Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Shrawan Jalan

Partner
Membership Number:102102
UDIN: 21102102AAAALA7288
Place of Signature: Mumbai

Date: June 11, 2021

Annexure 1 to the Independent Auditor’s report of even date on the consolidated
financial statements of Edelweiss Financial Services Limited
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 Statements of Edelweiss Financial Services Limited (hereinafter referred to
as the “Holding Company”) as of and for the year ended March 31, 2021, we have audited the internal financial controls with reference
to Consolidated Financial Statements of the Holding Company and its subsidiaries (the Holding Company and its subsidiaries together
referred to as “the Group”) and its associate, which are companies incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the companies included in the Group and its associate, which are companies incorporated in
India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting
criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Holding Company’s internal financial controls with reference to Consolidated Financial
Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, specified under section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls, both, issued by ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls with reference to Consolidated Financial Statements was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference
to Consolidated Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to
Consolidated Financial Statements included obtaining an understanding of internal financial controls with reference to Consolidated
Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports
referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal
financial controls with reference to Consolidated Financial Statements.
Meaning of Internal Financial Controls With Reference to Consolidated Financial Statements
A company’s internal financial control with reference to Consolidated Financial Statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal financial control with reference to Consolidated Financial Statements
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.

Annexure 1 to the Independent Auditor’s report of even date on the consolidated
financial statements of Edelweiss Financial Services Limited (Continued)
Inherent Limitations of Internal Financial Controls With Reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to Consolidated Financial Statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls with reference to Consolidated Financial Statements
to future periods are subject to the risk that the internal financial controls with reference to Consolidated Financial Statements may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Group and its associate, which are companies incorporated in India, have, maintained in all material respects,
adequate internal financial controls with reference to Consolidated Financial Statements and such internal financial controls with
reference to Consolidated Financial Statements were operating effectively as at March 31,2021, based on the internal control over
financial reporting criteria established by the Holding Company considering the essential components of internal control stated in the
Guidance Note issued by the ICAI.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with
reference to Consolidated Financial Statements of the Holding Company, in so far as it relates to these 19 subsidiaries, which are
companies incorporated in India, is based on the corresponding reports of the auditors of such subsidiaries incorporated in India.

per Shrawan Jalan

Partner
UDIN: 21102102AAAALA7288

Date: June 11, 2021

Consolidated balance sheet as at 31 March 2021
(Currency: Indian rupees in millions) Note 31-Mar-21 31-Mar-20

ASSETS
Financial assets
(a) Cash and cash equivalents 8 38,985.15 49,425.19
(b) Bank balances other than cash and cash equivalents 9 8,616.91 36,670.89
(c) Derivative financial instruments 10 2,902.03 5,321.87
(d) Stock in trade (Securities held for trading) 11 15,746.76 17,458.07
(e) Trade Receivables 12 5,060.49 13,052.38
(f) Loans 13 2,19,105.46 2,83,606.79
(g) Investments 14 1,14,763.02 82,666.02
(h) Other financial assets 15 12,628.07 8,302.33
Total financial assets 4,17,807.89 4,96,503.54
Non-financial assets
(a) Inventories 16 - 436.09
(b) Reinsurance assets 60 3,393.36 2,944.42
(c) Current tax assets (net) 7,218.14 5,839.78
(d) Deferred tax assets (net) 17 9,584.99 9,564.75
(e) Investment property 18 3,394.63 4,457.27
(f) Property, Plant and Equipment 19 12,281.27 15,012.58
(g) Capital work in progress 7.93 111.56
(h) Intangible assets under development 124.17 320.79
(i) Goodwill on consolidation 19.1 663.35 1,723.41
(j) Other Intangible assets 19 1,467.74 2,255.79
(k) Other non- financial assets 20 3,806.66 3,633.23
Total Non-financial assets 41,942.24 46,299.67
TOTAL ASSETS 4,59,750.13 5,42,803.21
LIABILITIES
Financial liabilities
(a) Derivative financial instruments 10 1,845.51 3,812.48
(b) Trade Payables
i. total outstanding dues of micro enterprises and small enterprises 21.1 1.22 2.21
ii. total outstanding dues of creditors other than micro enterprises and small enterprises 21.2 4,893.56 12,831.39
(c) Insurance claims payable 194.41 74.52
(d) Debt securities 22 1,74,858.54 2,07,585.06
(e) Borrowings (other than debt securities) 23 94,318.19 1,33,210.55
(f) Deposits 24 96.01 2,168.97
(g) Subordinated Liabilities 25 15,087.75 23,608.81
(h) Other financial liabilities 26 41,457.17 49,250.54
Total financial liabilities 3,32,752.36 4,32,544.53
Non-financial liabilities
(a) Current tax liabilities (net) 253.00 906.30
(b) Provisions 27 1,118.55 351.11
(c) Policyholders' liabilities 43,549.30 30,076.82
(d) Deferred tax liabilities (net) 17 2,157.62 2,643.73
(e) Other non-financial liabilities 28 3,149.35 4,209.95
Total non-financial liabilities 50,227.82 38,187.91
TOTAL LIABILITIES 3,82,980.18 4,70,732.44
EQUITY
(a) Equity Share capital 29 890.90 889.51
(b) Other equity 30 64,880.69 60,397.60
Equity attributable to owners of the parent 65,771.59 61,287.11
Equity attributable to Non-Controlling Interests 10,998.36 10,783.66
TOTAL EQUITY 76,769.95 72,070.77
TOTAL LIABILITIES AND EQUITY 4,59,750.13 5,42,803.21

The accompanying notes are an integral part of the Consolidated Financial Statements. 1 to 72
As per our report of even date attached
For S. R. Batliboi & Co. LLP For and on behalf of the Board of Directors
ICAI Firms Registration Number: 301003E/E300005
per Shrawan Jalan Rashesh Shah Himanshu Kaji
Partner Chairman, Managing Director & CEO Executive Director
Membership No: 102102 DIN: 00008322 DIN : 00009438
Sarju Simaria Tarun Khurana
Chief Financial Officer SVP & Company Secretary
Mumbai 11 June 2021 Mumbai 11 June 2021

Consolidated Statement of Profit and Loss for year ended 31 March 2021
For the year ended For the year ended

(Currency: Indian rupees in millions) Note
31-Mar-21 31-Mar-20
Revenue from operations
Interest income 31 40,344.01 59,019.46
Dividend Income 695.68 1,621.83
Fee and commission income 32 16,541.39 20,992.98
Net gain on fair value changes 33 22,208.98 1,949.58
Premium from insurance business (net) 13,246.40 10,567.76
Other operating revenue 34 537.14 981.53
Total revenue from operations 93,573.60 95,133.14
Other income 35 14,914.90 893.15

Total income 1,08,488.50 96,026.29
Expenses
Finance costs 36 38,340.33 47,930.39
Impairment on financial instruments 38 12,609.16 26,902.65
Change in valuation of credit impaired loans 8,126.08 8,712.42
Employee benefits expense 37 16,159.12 14,073.01
Depreciation, amortisation and impairment on investment property 18 & 19 2,598.81 2,322.25
Change in insurance policy liability - actuarial 13,023.25 6,421.00
Policy benefits paid 2,763.00 1,589.21
Other expenses 39 13,406.16 12,641.88
Total expenses 1,07,025.91 1,20,592.81
Profit / (loss) before share in profit of associates and tax 1,462.59 (24,566.52)
Share in profit / (loss) of associates (6.35) -
Profit / (loss) before tax 1,456.24 (24,566.52)
Tax expense: 40
Current tax 239.89 2,970.75
Deferred tax and Minimum alternate tax (1,322.85) (7,099.55)
Profit / (loss) for the year 2,539.20 (20,437.72)
Other Comprehensive Income / (loss)
(A) (i) Items that will not be reclassified to profit or loss
Re-measurements of the defined benefit plans 69.66 (46.74)
Equity Instruments through Other Comprehensive Income - (1,700.00)
Revaluation gain through Other Comprehensive Income - 7,674.77
(ii) Income tax relating to items that will not be reclassified to profit or loss 35.92 (2,531.91)
Subtotal (A) 105.58 3,396.12
(B) (i) Items that will be reclassified to profit or loss
Debt Instruments through Other Comprehensive Income (53.06) 863.64
Exchange differences in translating the financial statements of foreign operations (72.34) 466.66
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Subtotal (B) (125.40) 1,330.30
Share in profit / (loss) of associate (C) 1.85 -
Other comprehensive income / (loss) (A+B+C) (17.97) 4,726.42
Total comprehensive income / (loss) 2,521.23 (15,711.30)
Profit / (loss) for the year attributable to:

Owners of the parent 2,653.36 (20,452.45)
Non-controlling interests (114.16) 14.73
Other comprehensive income / (loss) for the year attributable to:
Owners of the parent 11.88 4,241.54
Total comprehensive income / (loss) for the year attributable to:
Owners of the parent 2,665.24 (16,210.91)
Earnings per share (Face value ` 1 each) 42

- Basic 2.98 (23.01)
- Diluted 2.97 (23.01)
The accompanying notes are an integral part of the Consolidated Financial Statements 1 to 72

Consolidated Statement of Cash Flow for the year ended 31 March 2021

(Currency : Indian rupees in millions)
31-Mar-21 31-Mar-20
A Cash flow from operating activities
Profit / (Loss)before tax 1,456.24 (24,566.52)
Adjustments for:
Depreciation, amortisation and impairment on investment property 2,598.81 2,322.25
Expense on employee stock option plans 333.75 390.79
Impairment of Goodwill 432.94 19.31
Impairment on financial instruments 3,212.56 14,047.16
Change in valuation of credit impaired loans 8,126.08 8,712.42
Interest on income tax refund (184.37) (304.73)
Dividend Income (695.68) (1,621.83)
(Profit) / loss on sale of property, plant and equipment (net)1 221.61 (4.59)
(Profit) / loss on sale of investment property (net)1 (157.33) -
Realised fair value (gain) / loss on financial instruments (38,686.78) (12,332.09)
Unrealised fair value (gain) / loss on financial instruments 2,642.86 10,382.51
Provision for policyholders liability 13,023.25 6,421.00
Finance costs 9,460.94 8,815.95
Operating cash flow before working capital changes 1,784.88 12,281.63
Adjustments for:
Decrease / (increase) in trade receivables 7,991.89 14,661.58
Decrease / (increase) in stock-in-trade and Inventory 2,047.28 22,933.83
Decrease / (increase) in Other financial/non financial assets (4,973.96) (2,598.30)
Decrease / (increase) in Derivative Financial Instruments (16.65) (1,498.00)
Decrease / (increase) in loans 49,414.69 77,557.50
Increase / (decrease) in trade payables (9,338.95) (6,919.23)
Increase / (decrease) in insurance claim payable 119.89 28.91
Increase / (decrease) in other financial liabilities (9,445.91) 9,069.43
Increase / (decrease) in Provisions (5.14) (20.40)
Increase / (decrease) in provision for policyholders' liabilities 449.23 (836.97)
Increase / (decrease) in other non-financial liabilities (1,060.59) 944.06
Cash generated from / (used in) operations 36,966.66 1,25,604.04
Income taxes paid (net of refund) (2,386.40) (4,619.94)
Net cash generated from / (used in) operating activities - A 34,580.26 1,20,984.10
B Cash flow from investing activities

Purchase of property, plant and equipment and intangibles (692.70) (1,211.27)
Proceeds from sale of property, plant and equipment 2,053.90 87.09
(Purchase) / sale of investment property1 857.96 (1,653.27)
(Purchase) / sale of investments1 9,880.31 6,422.95
Dividend on investments 695.68 1,621.83
(Investment) / Maturity of Bank deposits 28,053.97 (3,274.84)
Net cash generated from / (used in) investing activities - B 40,849.12 1,992.49

Consolidated Statement of Cash Flow for the year ended 31 March 2021 (Continued)

31-Mar-21 31-Mar-20
C Cash flow from financing activities
Proceeds from issue of shares including premium and share application money 49.61 79.93
Investment by Non Controlling Interest 432.87 390.54
Proceeds / (repayment) from Debt securities1 (30,986.53) (38,853.73)
Proceeds / (repayment) from Borrowings (other than debt securities)1 (38,892.36) (57,242.06)
Proceeds / (repayment) from Deposits1 (2,072.96) 732.21
Proceeds / (repayment) from Subordinated Liabilities1 (8,521.06) (67.77)
Dividend and dividend distribution tax paid - (368.89)
Lease payment (136.17) (785.29)
Effect of change in group interest 3,581.95 -
Finance cost paid (9,324.77) (8,594.55)
Net cash generated from / (used in) financing activities - C (85,869.42) (1,04,709.61)
Net increase in cash and cash equivalents (A+B+C) (10,440.04) 18,266.98

Cash and cash equivalents as at the beginning of the year 49,425.19 31,158.21
Cash and cash equivalents as at the end of the year 38,985.15 49,425.19
Notes:
1. Cash receipts and payments for transaction in which the turnover is quick, the amounts are large, and the maturities are short
are presented on net basis in accordance with Ind AS-7 Statement of Cash Flows
2. Cash Flow Statement has been prepared under the indirect method as set out in Ind AS 7 prescribed under the Companies
(Indian Accounting Standards) Rules, 2015 under the Companies Act, 2013
3. Net cash generated from/(used in) operating activities includes interest received ` 40,344.01 million (Previous year ` 59,019.46
million) and interest paid ` 28,879.40 million (Previous year ` 39,114.43 million)
4. Refer note 49 for changes in liabilities arising from financing activities




Consolidated Statement of changes in equity
(Currency : Indian rupees in million)
A Equity share capital1
Particulars Amount
As at 31-Mar-19 887.77
Changes in equity share capital during FY 2019-20 1.74
As at 31-Mar-20 889.51

As at 31-Mar-21 890.90
1. Edelweiss Employees' Welfare Trust and Edelweiss Employees' Incentive and Welfare Trust are extension of Edelweiss Financial Services Limited standalone financial statements, these trusts are holding
4,48,96,780 number of equity shares amounting to ` 44.90 million (Previous year ` 44.90 million). These are treasury shares and deducted from total outstanding equity shares.
2. Refer note 29 for detailed quantitative information including investors holding more than 5% of equity share capital
3. The above two Welfare Trust (s) hold an aggregate 44,896,780 equity shares of the Company for incentive and welfare benefits for group employees as per extant applicable SEBI regulations. Pursuant
to the exercise of right available under Regulation 29 of SEBI (Share Based Employee Benefits) Regulations, 2014, the Company has applied before the expiry date of 27 October 2019 for extension of the
time limit for disposing of aforesaid equity shares. The said application is under consideration and approval for extension from SEBI is awaited as at date.
B. Other equity
Particulars Reserves and Surplus Other Comprehensive Income Total Non-
attributable Controlling
Share Capital Capital Securities ESOP Special Reserve General Debenture Impairment Retained Exchange Revaluation Equity Debt
to owners of Interest
application Reserve Redemption Premium reserve/Stock Reserve under reserve redemption Reserve earnings differences Reserve instruments instruments
the parent
money Reserve Account appreciation under section reserve on through Other through Other through Other
pending rights (SAR) section 45- 29C of the translating Comprehensive Comprehensive Comprehensive
allotment IC of the National the Income Income Income
Reserve Housing financial
Bank of Bank Act, statements
India Act, 1987 of
1934 a foreign
operation
Balance as at 31-Mar-19 6.15 8,060.23 166.74 29,473.29 460.59 7,503.94 537.22 916.82 10,341.12 - 18,215.34 175.66 - - 24.93 75,882.03 10,380.11
Profit or (loss) - - - - - - - - - - (20,452.45) - - - - (20,452.45) 14.73
Other comprehensive income /(loss) - - - - - - - - - - (36.28) 467.61 5,080.88 (1,700.00) 429.33 4,241.54 484.88
Total Comprehensive Income /(loss) - - - - - - - - - - (20,488.73) 467.61 5,080.88 (1,700.00) 429.33 (16,210.91) 499.61
for the year
Dividends to equity shareholders - - - - - - - - - - (266.51) - - - - (266.51) -
Dividend distribution tax - - - - - - - - - - (102.38) - - - - (102.38) -
Transfers to securities premium on - - - 33.37 (33.37) - - - - - - - - - - - -
exercise of ESOP
Issue of equity instruments on ESOP (85.88) - - 84.14 - - - - - - - - - - - (1.74) -
Share application money received 79.92 - - - - - - - - - - - - - - 79.92 -
ESOP Charge - - - - 242.03 - - - - - - - - - - 242.03 -
Stock appreciation rights (SAR) - - - - 148.93 - - - - - - - - - - 148.93 -
Transfers to / from retained earnings - - 106.88 - - - - (90.26) (1,619.61) - 1,602.99 - - - - - -
Transfer Under 45 -IC RBI - - - - - 143.66 - - - - (143.66) - - - - - -
Transfer Under 29C NHB - - - - - - 3.12 - - - (3.12) - - - - - -
Consolidated Statement of changes in equity (Continued)
(Currency : Indian rupees in million)
B. Other equity (Continued)

Particulars Reserves and Surplus Other Comprehensive Income Total Non-
attributable Controlling
Share Capital Capital Securities ESOP Special Reserve General Debenture Impairment Retained Exchange Revaluation Equity Debt
to owners of Interest
application Reserve Redemption Premium reserve/Stock Reserve under reserve redemption Reserve earnings differences Reserve instruments instruments
the parent
money Reserve Account appreciation under section reserve on through Other through Other through Other
pending rights (SAR) section 45- 29C of the translating Comprehensive Comprehensive Comprehensive
allotment IC of the National the Income Income Income
Reserve Housing financial
Bank of Bank Act, statements
India Act, 1987 of
1934 a foreign
operation
Transfer under Lease impact - IND AS - - - - - - - - - - (209.55) - - - - (209.55) -
(Refer note 50.2)
Transfer under Impairment reserve - - - - - - - - - 1,577.37 (1,577.37) - - - - - -
Transaction with non-controlling - - - - - - - - - - - - - - - - (115.97)
interests
Transfer from securities premium - - - (528.31) - - - - - - - - - - - (528.31) -
Effect of changes in group's interest - 198.50 - - - - - - - - 1,418.69 (253.10) - - - 1,364.09 19.91
Balance as at 31-Mar-20 0.19 8,258.73 273.62 29,062.49 818.18 7,647.60 540.34 826.56 8,721.51 1,577.37 (1,554.30) 390.17 5,080.88 (1,700.00) 454.26 60,397.60 10,783.66
Profit or (loss) - - - - - - - - - - 2,653.37 - - - - 2,653.37 (114.16)
Other comprehensive income /(loss) - - - - - - - - - - 58.16 (72.31) 47.51 - (21.48) 11.88 (29.85)
Total Comprehensive Income /(loss) - - - - - - - - - - 2,711.53 (72.31) 47.51 - (21.48) 2,665.25 (144.01)
for the year
Dividends to equity shareholders - - - - - - - - - - (842.23) - - - - (842.23) -
Transfers to securities premium on - - - 25.03 (25.03) - - - - - - - - - - - -
exercise of ESOP
Issue of equity instruments on ESOP (48.10) - - 46.71 - - - - - - - - - - - (1.39) -
Share application money received 49.61 - - - - - - - - - - - - - - 49.61 -
ESOP Charge - - - - 139.42 - - - - - - - - - - 139.42 -
Stock appreciation rights (SAR) - - - - 195.71 - - - - - - - - - - 195.71 -
Transfer Under 45 -IC RBI - - - - - 71.60 - - - - (71.60) - - - - - -
Transfer Under 29C NHB - - - - - - 7.46 - - - (7.46) - - - - - -
Transfer under Impairment reserve - - - - - - - - - 251.88 (251.88) - - - - - -
Transfer under Debenture Redemption - - - - - - - - (1,955.90) - 1,955.90 - - - - - -
Reserve
Transfer under Revaluation Reserve - - - - - - - - - - 241.14 - (241.14) - - - -
Effect of changes in group's interest - 198.06 (85.75) - - (961.22) - (109.41) - - 3,886.58 (335.38) (316.16) - - 2,276.72 358.71
Balance as at 31-Mar-21 1.70 8,456.79 187.87 29,134.23 1,128.28 6,757.98 547.80 717.15 6,765.61 1,829.25 6,067.68 (17.52) 4,571.09 (1,700.00) 432.78 64,880.69 10,998.36
1. Refer note 30 for information on nature of reserves maintained at Group level


Notes to the consolidated financial statements
1. Background
The Company is principally engaged in providing investment banking services and holding company activities comprising of
development, managerial and financial support to the business of Edelweiss group entities. The Company has its registered
office at Edelweiss House, Off C.S.T. Road, Kalina, Mumbai, India.
2. Basis of preparation of consolidated financial statements
The consolidated financial statements relate to Edelweiss Financial Services Limited (‘the Company’) and its subsidiaries, trusts
(together ‘the Group’) and associates. The Group is primarily engaged in (a) agency business, which includes Broking, advisory,
product distribution and other fee based services, (b) Capital based business which includes Income from lending business,
(c) Life insurance and General insurance business (d) Asset reconstruction business and (e) Treasury business includes income
from trading and investment activities.
The consolidated financial statements of the Group have been prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). These
consolidated financial statements have been approved for issue by the Board of Directors of the Company on 11 June 2021.
These consolidated financial statements have been prepared on a historical cost basis, except for entities under liquidation/
dissolution1 and certain financial instruments such as financial asset measured at fair value through other comprehensive
income (FVOCI) instruments, derivative financial instruments, fair value through Profit or Loss and other financial assets
held for trading, certain property plant and equipment which have been measured at fair value. The consolidated financial
statements are presented in Indian Rupees (INR) and all values are rounded to the nearest million, except when otherwise
indicated.
3. Presentation of financial statements
The Group presents its balance sheet in order of liquidity in compliance with the Division III of the Schedule III to the Companies
Act, 2013. An analysis regarding recovery or settlement within 12 months after the reporting date (current) and more than
12 months after the reporting date (non-current) is presented in Note 48.
Financial assets and financial liabilities are generally reported gross in the balance sheet. They are only offset and reported
net when, in addition to having an unconditional legally enforceable right to offset the recognised amounts without being
contingent on a future event, the parties also intend to settle on a net basis in all of the following circumstances:
 The normal course of business
 The event of default
 The event of insolvency or bankruptcy of the company and or its counterparties
Derivative assets and liabilities with master netting arrangements (e.g. transactions under International Swaps and Derivative
Association (ISDA) master agreement) are only presented net when they satisfy the eligibility of netting for all of the above
criteria and not just in the event of default.
1
Refer note 58

Notes to the consolidated financial statements (Continued)
4. Basis of consolidation:
The consolidated financial statements as on 31 March 2021, comprise the financial statements of the Company and its
subsidiaries as at 31 March 2021 including any controlled structured entities. The Company consolidates a subsidiary when
it controls it. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that
a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the
voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
 The contractual arrangement with the other vote holders of the investee
 Rights arising from other contractual arrangements
 The Group’s voting rights and potential voting rights
 The size of the Group’s holding of voting rights relative to the size and dispersion of the holdings of the other voting
rights holders
The Group re-assesses whether or not it controls an investee, if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events
in similar circumstances. If a member of the Group uses accounting policies other than those adopted in the consolidated
financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that Group
member’s financial statements in preparing the consolidated financial statements to ensure conformity with the Group’s
accounting policies. However, no subsidiaries, associates and consolidated structure entities have followed different accounting
policies than those followed by the Group for the preparation of these consolidated financial statements.
The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of
the parent company, i.e., year ended on 31 March.
Consolidation procedure:
a. Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its
subsidiaries. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and
liabilities recognised in the consolidated financial statements at the acquisition date.
b. Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity
of each subsidiary. Business combinations policy explains how to account for any related goodwill, refer note no 5.25
c. Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between entities of the Group (profits or losses resulting from intragroup transactions that are recognised in assets, are
eliminated in full). Income Taxes applies to temporary differences that arise from the elimination of profits and losses
resulting from intragroup transactions.
Profit or loss and each component of Other Comprehensive Income (OCI ) are attributed to the equity holders of the
parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a
deficit balance.

4. Basis of consolidation: (Continued)
A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. With
respect to put options granted by the Group to the holders of non-controlling interests in a subsidiary, where the Group
does not have a present ownership interest in the shares subject to put, till the put remains unexercised, non-controlling
continues to be recognised including allocation of profit or loss, other comprehensive income and other changes in equity of
the subsidiary. However, at each reporting date, the non-controlling interest is derecognised as if it were acquired at that date
and a financial liability is recognised and measured at its fair value. The difference between these two amounts is recognised
as an equity transaction and attributed to owners of the parent.
Given the level of judgement required regarding consolidation of structured entities, these considerations are described further
in the significant accounting judgements in Note 6.1(c). Disclosures for investment in subsidiaries, and structured entities are
provided in Note 58.
The financial statements of all subsidiaries incorporated outside India are converted on the following basis: (a) Income and
expenses are converted at the average rate of exchange applicable for the period/year and (b) All assets and liabilities are
translated at the closing rate as on the Balance Sheet date. The exchange difference arising out of period/year end translation is
debited or credited as “Foreign Exchange Translation Reserve” forming part of Other Comprehensive Income and accumulated
as a separate component of other equity.
Investment in associates:
An associate is an entity over which the Group has the power to participate in the financial and operating policy decision of
the investee, but it’s not control or joint control over those policies.
The Group’s investments in its associate is accounted for using the equity method. Under the equity method, the investment
in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the
Group’s share of net assets of the associate since the acquisition date. The Statement of Profit and Loss reflects the Group’s
share of the results of operations of the associate. Any change in OCI of those investees is presented as part of the Group’s
OCI. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its
share of any changes, when applicable, in the Statement of Changes in Equity. Unrealised gains and losses resulting from
transactions between the Group and the associate are eliminated to the extent of the interest in the associate.
5. Significant accounting policies
5.1. Recognition of Interest, Dividend income and Donation income
Interest income is recorded using the effective interest rate (EIR) method for all financial instruments measured at amortised
cost and debt instrument measured at FVOCI. The EIR is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the gross carrying amount of the financial asset.
The EIR (and therefore, the amortised cost of the financial asset) is calculated by taking into account any discount or premium
on acquisition, fees and costs that are an integral part of the EIR. The Group recognises interest income using a rate of return
that represents the best estimate of a constant rate of return over the expected life of the loan. Hence, it recognises the effect
of potentially different interest rates charged at various stages, and other characteristics of the product life cycle (including
prepayments, penalty interest and charges).
If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment
is booked as a positive or negative adjustment to the carrying amount of the asset in the balance sheet with an increase or
reduction in interest income.

5. Significant accounting policies (Continued)
5.1. Recognition of Interest, Dividend income and Donation income (Continued)
When a financial asset becomes credit-impaired and is, therefore, regarded as ‘Stage 3’, the Group calculates interest income
by applying the effective interest rate to the amortised cost of the financial asset. If the financial assets cures and is no longer
credit-impaired, the Group reverts to calculating interest income on a gross basis.
For purchased or originated credit-impaired (POCI) financial assets, the Group calculates interest income by calculating the credit-
adjusted EIR and applying that rate to the amortised cost of the asset. The credit-adjusted EIR is the interest rate that, at original
recognition, discounts the estimated future cash flows (including credit losses) to the amortised cost of the POCI assets.
Dividend Income
Dividend income is recognised in profit or loss when the Group’s right to receive payment of the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to the entity, and the amount of the dividend can
be measured reliably.
Donation/grants received
General donations are recognised as income in the year of receipt in the statement of profit and loss. Amount received with
a specific direction from donors towards a particular project for more than a financial year is recognized as income, only to
the extent of cost incurred in that financial year and balance is recorded as liability. Amounts received with a specific direction
from donors that such amounts shall from a part of Corpus of the Foundation are credited as Corpus Fund and disclosed as a
liability in the Balance Sheet.
5.2 Financial Instruments
5.2.1 Date of recognition
Financial assets and financial liabilities, with the exception of borrowings are initially recognised on the trade date, i.e., the date
that the Group becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or
sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention
in the marketplace. The Group recognises borrowings when funds are available for utilisation to the Group.
5.2.2 Initial measurement of financial instruments
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.
5.2.3 Day 1 profit or loss
When the transaction price of the financial instrument differs from the fair value at origination and the fair value is based on
a valuation technique using only inputs observable in market transactions, the Group recognises the difference between the
transaction price and fair value in net gain on fair value changes. In those cases where fair value is based on models for which
some of the inputs are not observable, the difference between the transaction price and the fair value is deferred and is only
recognised in profit or loss when the inputs become observable, or when the instrument is derecognised.

5.3 Classification of financial instruments
5.3.1 Financial assets:
The Group classifies all its financial assets based on the business model for managing the assets and the asset’s contractual
terms, measured at either:
 Amortised cost
 Fair value through other comprehensive income [FVOCI]
 Fair value through profit or loss [FVTPL]
The Group measures debt financial assets that meet the following conditions at amortised cost:
 the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
 the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Debt financial instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (except for debt instruments that are designated as at fair value through profit or loss on initial
recognition):
 the financial asset is held within a business model whose objective is achieved both by collecting contractual cash flows
and selling the financial assets; and
 the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Other than above classification of amortised cost and FVOCI, all other financial assets are initially measured at fair value
and subsequently measured at FVTPL.
5.3.1.1 Amortised cost and Effective interest method
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the
principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that
initial amount and the maturity amount, adjusted for any loss allowance. On the other hand, the gross carrying amount of a
financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
5.3.1.2 Financial assets held for trading
The Group classifies financial assets as held for trading when they have been purchased or issued primarily for short-term
profit making through trading activities or form part of a portfolio of financial instruments that are managed together, for
which there evidence of a recent pattern of short-term profit is taking. Held-for- trading assets and liabilities are recorded and
measured in the balance sheet at fair value. Financial assets designated at FVTPL, please refer note 5.3.2.2

5.3 Classification of financial instruments (Continued)
5.3.1.3 Financial asset measured at FVOCI
Unrealised gains or losses on debt instruments measured at FVOCI are recognised in other comprehensive income, and on
derecognition of such instrument accumulated gains or losses are recycled to profit and loss statement. Interest income on
such instrument is recognised in profit and loss statements as per EIR method.
5.3.1.4 Investment in equity instruments
The Group subsequently measures all equity investments at fair value through profit or loss, unless the management has
elected to classify irrevocably some of its strategic equity investments to be measured at FVOCI, when such instruments
meet the definition of equity under Ind AS and are not held for trading. Such classification is determined on an instrument-
by-instrument basis.
5.3.2 Financial liabilities
All financial liabilities are measured at amortised cost except loan commitments, financial guarantees, and derivative financial
liabilities.
5.3.2.1 Debt securities and other borrowed funds
After initial measurement, debt issued and other borrowed funds are subsequently measured at amortised cost. Amortised
cost is calculated by taking into account any discount or premium on issue funds, and costs that are an integral part of the
instrument.
The Group issues certain non-convertible debentures, the return of which is linked to performance of specified indices over
the period of the debenture. Such debentures have a component of an embedded derivative which is fair valued at a reporting
date. The resultant ‘net unrealised loss or gain’ on the fair valuation of these embedded derivatives is recognised in the
statement of profit and loss. The debt component of such debentures is measured at amortised cost using yield to maturity
basis.
5.3.2.2 Financial assets and Financial liabilities at fair value through profit or loss
Financial assets and financial liabilities in this category are those that are not held for trading and have been either designated
by management upon initial recognition or are mandatorily required to be measured at fair value. Management only designates
an instrument at FVTPL upon initial recognition when one of the following criterias are met. Such designation is determined
on an instrument-by-instrument basis:
 The designation eliminates, or significantly reduces, the inconsistent treatment that would otherwise arise from
measuring the assets or liabilities or recognising gains or losses on them on a different basis; or
 The liabilities are part of a group of financial liabilities, which are managed and their performance evaluated on a fair
value basis, in accordance with a documented risk management or investment strategy; or
 The liabilities containing one or more embedded derivatives, unless they do not significantly modify the cash flows that
would otherwise be required by the contract, or it is clear with little or no analysis when a similar instrument is first
considered that separation of the embedded derivative(s) is prohibited.

5.3.2.2 Financial assets and Financial liabilities at fair value through profit or loss (Continued)
Financial assets and financial liabilities at FVTPL are recorded in the balance sheet at fair value. Changes in fair value are
recorded in profit and loss with the exception of movements in fair value of liabilities designated at FVTPL due to changes
in the Group’s own credit risk. Such changes in fair value are recorded in the own credit reserve through OCI and do not get
recycled to the profit or loss. Interest earned or incurred on instruments designated at FVTPL is accrued in interest income
or finance cost, respectively, using the EIR, taking into account any discount/ premium and qualifying transaction costs being
an integral part of instrument. Interest earned on assets mandatorily required to be measured at FVTPL is recorded using
contractual interest rate.
5.3.2.3 Financial guarantee:
Financial guarantees are contracts that require the Group to make specified payments to reimburse to holder for loss that it
incurs because a specified debtor fails to make payment when it is due in accordance with the terms of a debt instrument.
Financial guarantee issued or commitments to provide a loan at below market interest rate are initially measured at fair value
and the initial fair value is amortised over the life of the guarantee or the commitment. Subsequently they are measured at
higher of this amortised amount and the amount of loss allowance.
5.3.2.4 Loan commitment
Undrawn loan commitments are commitments under which, the Group is required to provide a loan with pre-specified terms
to the customer during the duration of commitment.
5.3.3 Financial liabilities and equity instruments
Financial instruments issued by the group are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a group entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised
in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Derivatives
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange
rate risks, including foreign exchange forward contracts and interest rate swaps.
Group has designed a risk strategy based to cover exposure on issuance of Benchmark Linked Debentures, by entering into
a derivative contracts either to minimise the loss or to earn a minimum committed income by entering into a combination
of derivative contracts (say for example purchased call and put options) with a wide range of strike prices. Above strategy
has been approved by the risk committee and ensures that risk is fully or partially covered, hence support to reduce the risk
exposure.
Derivatives are initially recognised at fair value and are subsequently re-measured at fair value through profit or loss. The
resulting gain or loss is recognised in profit or loss immediately.

5.3.3 Financial liabilities and equity instruments (Continued)
Embedded derivatives
An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with the
effect that some of the cash flows of the combined instrument vary in a way similar to a standalone derivative An embedded
derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to
a specified interest rate, foreign exchange rate, or other variable, provided that, in the case of a non-financial variable, it is
not specific to a party to the contract.
Derivatives embedded in all other host contracts are accounted for as separate derivatives and recorded at fair value if their
economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for
trading or designated at fair value though profit or loss. These embedded derivatives are measured at fair value with changes
in fair value recognised in profit or loss, unless designated as effective hedging instruments.
Forward Rate Agreement (FRA) and Interest Rate Futures (IRF)
The Company enters into interest rate derivative transactions i.e. Forward Rate Agreement (FRA) and Interest Rate Futures
(IRF) to hedge the interest rate risk arising out of highly probable forecasted future cash inflows.
A Forward Rate Agreement (“FRA”) is a forward contract to hedge the risk of movements in interest rates. In FRA contract, the
Company fixes the yield on the government bond for the period till the maturity of the contract. The Company has entered
into FRA to hedge interest rate risk on forecasted premium receivable from already written policies at future dates.
Forward Rate Agreement derivative contracts are over-the-counter (OTC) transactions, agreeing to buy notional value of a
debt security at a specified future date, at a price determined at the time of the contract with an objective to lock in the price
of an interest bearing security at a future date.
The Forward Rate Agreement (FRA) contract is valued at the difference between the market value of underlying bond
at the spot reference yield taken from the SEBI approved rating agency and present value of contracted forward price of
underlying bond including present value of intermediate coupon inflows from valuation date till FRA contract settlement date,
at applicable INR-OIS rate curve.
Interest rate futures are standardized interest rate derivative contracts which are permitted by IRDAI to hedge risks on
forecasted transactions. These are traded on a recognized stock exchange to buy or sell a notional security or any other
interest-bearing instrument or an index of such instruments or interest rates at a specified future date, at a price determined
at the time of the contract.
The instrument is classified as FVTPL securities and the net gain on fair value change is recognized in the Statement of Profit
and Loss.
Derivatives Instruments are initially recognized at fair value at the date of entering into the derivative contracts and are
subsequently re-measured to their fair value at the end of each reporting period. The Company follows Cash Flow Hedge
accounting. Hedge effectiveness is ascertained at the inception of the hedge and periodically thereafter.

5.3.3 Financial liabilities and equity instruments (Continued)
Forward Rate Agreement (FRA) and Interest Rate Futures (IRF) (Continued)
At the inception of the hedge, the Company documents the relationship between the hedging instrument and the hedged item,
the risk management objective, strategy for undertaking the hedge and the methods used to assess the hedge effectiveness.
Hedge effectiveness is the degree to which changes in the fair value or cash flows of the hedged item that are attributable to a
hedged risk are offset by changes in the fair value or cash flows of the hedging instrument. Hedge effectiveness is ascertained
at the time of inception of the hedge and periodically thereafter at Balance Sheet date.
The portion of fair value gain/loss on the IRD that is determined to be an effective hedge is recognized directly in appropriate
account i.e. ‘Fair value gain/loss on derivatives’ under the head Other Comprehensive Income and accumulated under the
head of Cash Flow Hedge Reserve in the Balance Sheet and the portion of IRD fair value gain/loss that gets determined as
ineffective hedge or ineffective portion of effective hedge, basis the hedge effectiveness assessment is recognized in the
Statement of Profit and Loss.
The accumulated gains or losses that were recognised directly in the Hedge Reserve are reclassified into Statement of Profit
and Loss, in the same period during which the income from hedged forecasted cash flows affect the Statement of Profit and
Loss (such as in the periods that income on the investments acquired from underlying forecasted cashflow is recognized in the
Statement of Profit and Loss). In the event that all or any portion of loss or gain, recognised directly in the Hedge Reserve is not
expected to be recovered in future periods, the amount that is not expected to be recovered is reclassified to the Statement
of Profit and Loss. Gains or losses arising from hedge ineffectiveness, if any, are recognised in the Statement of Profit and Loss.
Costs associated with derivative contracts are considered as at a point in time cost.
5.4 Reclassification of financial assets and financial liabilities
The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances
in which the Group acquires, disposes of, or terminates a business line. Financial liabilities are never reclassified.
5.5 Derecognition of financial assets and financial liabilities
5.5.1 Derecognition of financial assets due to substantial modification of terms and conditions
The Group derecognises a financial asset, such as a loan to a customer, when the terms and conditions have been renegotiated
to the extent that, substantially, it becomes a new financial assets, with the difference recognised as a derecognition gain or
loss, to the extent that an impairment loss has not already been recorded. The newly recognised financial asset are classified
as Stage 1 for ECL measurement purposes, unless the new financial asset is deemed to be POCI
When assessing whether or not to derecognise a financial asset, amongst others, the Group considers the following factors:
 Change in currency of the loan

 Introduction of an equity feature
 Change in counterparty
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition.
Based on the change in cash flows discounted at the original EIR, the Group records a modification gain or loss, to the extent
that an impairment loss has not already been recorded.

5.5 Derecognition of financial assets and financial liabilities (Continued)
5.5.2 Derecognition of financial assets (other than due to substantial modification)
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised
when the rights to receive cash flows from the financial asset have expired. The Group also derecognises the financial asset
if it has both transferred the financial asset and the transfer qualifies for derecognition.
The Group has transferred the financial asset if, and only if, either:
 The Group has transferred its contractual rights to receive cash flows from the financial asset; or
 It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass–through’ arrangement.
Pass -through arrangements are transactions whereby the Group retains the contractual rights to receive the cash flows of a
financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows to one or more entities (the
‘eventual recipients’), when all of the following conditions are met:
 The Group has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from
the original asset, excluding short-term advances with the right to full recovery of the amount lent plus accrued interest
at market rates
 The Group cannot sell or pledge the original asset other than as security to the eventual recipients
The Group has to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the
Group is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents including interest earned,
during the period between the collection date and the date of required remittance to the eventual recipients.
A transfer only qualifies for derecognition if either:
 The Group has transferred substantially all the risks and rewards of the asset; or
 The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset
The Group considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to
an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.
5.5.3 Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing financial liability are substantially modified, such an exchange or modification is treated as a derecognition of
the original financial liability and the recognition of a new financial liability. The difference between the carrying value of the
original financial liability and the consideration paid, including modified contractual cash flow recognised as new financial
liability, would be recognised in profit or loss.

5.6 Impairment of financial assets
The Group records allowance for expected credit losses for all financial assets, other than financial assets held at FVTPL,
together with loan commitment and financial guarantee contracts. Equity instruments are not subject to impairment.
The Group follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables and lease receivables.
The application of simplified approach does not require the Group to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Group uses
a provision matrix to determine impairment loss allowance on portfolio of its receivables. The provision matrix is based on
its historically observed default rates over the expected life of the receivables. However, if receivables contain a significant
financing component, the Group chooses as its accounting policy to measure the loss allowance by applying general approach
to measure ECL.
For all other financial assets, where ECL to be recognised, the Group recognises lifetime ECL when there has been a significant
increase in credit risk (SICR) since initial recognition. If, on the other hand, the credit risk has not increased significantly since
initial recognition, the Group measures the loss allowance for such instrument at an amount equal to 12-month expected
credit losses (12m ECL). The assessment of whether lifetime ECL should be recognised is based on significant increases in the
likelihood or risk of a default occurring since initial recognition instead of an evidence of a financial asset being credit-impaired
at the reporting date or an actual default occurring.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life. In
contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default events that are possible within
12 months after the reporting date.
The measurement of ECL is a function of the probability of default (PD), loss given default (LGD) (i.e. the magnitude of the
loss if there is a default) and the exposure at default (EAD). The assessment of the PD and LGD is based on historical data
adjusted by forward-looking information. As for the EAD, for financial assets, this is represented by the assets’ gross carrying
amount at the reporting date; for loan commitments and financial guarantee contracts, the exposure includes the amount
drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the future by
default date determined based on historical trend, the Group’s understanding of the specific future financing needs of the
borrowers, and other relevant forward-looking information.
For financial assets, ECL is estimated as the difference between all contractual cash flows that are due to the Group in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective
interest rate. The Group recognises an impairment loss or reversal of impairment loss in the profit and loss statement with a
corresponding adjustment to their carrying amount through a loss allowance account.
If a financial instrument includes both a loan (i.e. financial asset) and an undrawn commitment (i.e. loan commitment)
component and the Group cannot separately identify the ECL on the loan commitment component from those on the
financial asset component, the ECL on the loan commitment have been recognised together with the loss allowance for the
financial asset. To the extent that the combined ECL exceed the gross carrying amount of the financial asset, the ECL have
been recognised as a provision. Also, for other loan commitments and all financial guarantee contracts, the loss allowance
has been recognised as a provision.

5.7 Collateral valuation
To mitigate its credit risks on financial assets, the Group seeks to use collateral, where possible. The collateral comes in various
forms, such as cash, securities, letters of credit/guarantees, real estate, receivables, inventories, other non-financial assets
and credit enhancements such as netting agreements. Collateral, unless repossessed, is not recorded on the balance sheet.
However, the fair value of collateral affects the calculation of ECLs. It is generally assessed, at a minimum, at inception and re-
assessed on a periodical basis. However, some collateral, for example, cash or securities relating to margining requirements,
is valued daily
To the extent possible, the Group uses active market data for valuing financial assets held as collateral. Other financial assets
which do not have readily determinable market values are valued using models.
5.8 Collateral repossessed
The Group’s policy is to determine whether a repossessed asset can be best used for its internal operations or should be
sold. Assets determined to be useful for the internal operations are transferred to their relevant asset category at the lower
of their repossessed value or the carrying value of the original secured asset. Assets for which selling is determined to be a
better option are transferred to assets held for sale at their fair value (if financial assets) and fair value less cost to sell for
non-financial assets at the repossession date in, line with the Group’s policy.
In its normal course of business, the Group does not physically repossess properties or other assets in its retail portfolio, but
engages external agents to recover funds, generally at auction, to settle outstanding debt. Any surplus funds are returned to
the customers/obligors.
5.9 Write off
Financial assets are written off either partially or in their entirety only when the Group has no reasonable expectation of
recovery.
5.10 Forborne and modified loan
The Group sometimes makes concessions or modifications to the original terms of loans as a response to the borrower’s
financial difficulties, rather than taking possession or to otherwise enforce collection of collateral. The Group considers
a loan forborne when such concessions or modifications are provided as a result of the borrower’s present or expected
financial difficulties and the Group would not have agreed to them if the borrower had been financially healthy. Indicators of
financial difficulties include defaults on covenants, or significant concerns raised by the Credit Risk Department. Forbearance
may involve extending the payment arrangements and the agreement of new loan conditions. Once the terms have been
renegotiated, any impairment is measured using the original EIR as calculated before the modification of terms. It is the Group’s
policy to monitor forborne loans to help ensure that future payments continue to be likely to occur. Derecognition decisions
and classification between Stage 2 and Stage 3 are determined on a case- by-case basis. If these procedures identify a loss in
relation to a loan, it is disclosed and managed as an impaired Stage 3 forborne asset, until it is collected or written off.

5.11 Determination of fair value
The Group measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
 In the principal market for the asset or liability, or
 In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-
financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses
valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs. In order to show how fair
values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as summarised
below:
 Level 1 financial instruments −Those where the inputs used in the valuation are unadjusted quoted prices from active
markets for identical assets or liabilities that the Group has access at the measurement date. The Group considers
markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the identical
assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet date.
 Level 2 financial instruments−Those where the inputs that are used for valuation and are significant, are derived from
directly or indirectly observable market data available over the entire period of the instrument’s life.
 Level 3 financial instruments −Those that include one or more unobservable input that is significant to the measurement
as whole. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on
the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Group periodically reviews its valuation techniques including the adopted methodologies and model calibrations.
Therefore, the Group applies various techniques to estimate the credit risk associated with its financial instruments measured
at fair value, which include a portfolio-based approach that estimates the expected net exposure per counterparty over the
full lifetime of the individual assets, in order to reflect the credit risk of the individual counterparties for non-collateralised
financial instruments.
The Group evaluates the levelling at each reporting period on an instrument-by-instrument basis and reclassifies instruments
when necessary based on the facts at the end of the reporting period.

5.12 Revenue from contracts with customers
Revenue is measured at transaction price i.e. the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to the customer, excluding amounts collected on behalf of third parties.
The Group consider the terms of the contract and its customary business practices to determine the transaction price. Where
the consideration promised is variable, the Group excludes the estimates of variable consideration that are constrained. The
Group applies the five-step approach for the recognition of revenue:
I. Identification of contract
II. Identification of the separate performance obligation in the contract
III. Determination of transaction price
IV. Allocation of transaction price to separate performance obligation and
V. Recognition of revenue when (or as) each performance obligation is satisfied
The Group recognises revenue from the following sources:
a. Fee income including investment banking, advisory fees and syndication fees, is accounted over the period as the
customer simultaneously receives and consumes the benefits, as the services are rendered.
b. Clearing fee income arises, when the performance obligation related to trade is executed and a valid contract is
generated for the trade. Fee income is accounted for, at a point in time or over a period of time in accordance with the
terms and contracts entered into between the Group and the counterparty.
c. Brokerage income on securities and commodities broking business is recognised as per contracted rates at the execution
of transactions on behalf of the customers on the trade date and is reflected net of related sub-brokerage expenses,
goods and service tax (“GST”), transaction charges and stock exchange expenses. Brokerage income on insurance
broking business is recognised on an accrual basis at the inception of the insurance policy once the policy is issued by
the insurance company based on the terms agreed with the insurance companies and is exclusive of GST.
d. Investment management fees are recognised net of GST over the tenure in accordance with the Investment Management
Agreement with Edelweiss Mutual Fund (‘the mutual fund’) and comply with the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996 based on average Assets Under Management (‘AUM’) confirmed by the mutual fund.
e. Management fee from trusts declared by it for acquisition of financial assets and the same is accounted for over the
tenure as per terms of the relevant trust deeds and offer document issued by the Trust. Further any upside share in
excess realisation over acquisition price of financial asset is recognised at point in time basis as per terms of the relevant
trust deed/offer document. Redemption incentive and recovery incentive is accounted over the period on cash basis,
i.e. as and when received by the Group, based on terms of the relevant trust deeds and offer document issued by the
Trust.
f. Portfolio management fees are recognised over the tenure in accordance with portfolio management agreement entered
with respective clients.
g. Interest on delayed payments, warehousing charges and rental income are recognised as revenue on certainty of
realisation.

5.12 Revenue from contracts with customers (Continued)
h. Agency commission/procurement income is recorded in pursuant to terms and conditions mentioned in scope of work
or agreement.
i. Real estate advisory fee income is recognised basis the terms and conditions mentioned in the agreement.
j. Revenue from fund management services (excluding mutual fund business) is recognised over the tenure in accordance
with the terms and conditions of the investment management agreement between the Group and the Fund for which
the Group acts as a fund manager.
k. Revenue from rendering of trustee services is recognised in accordance with the terms and conditions of the
Compensation Agreement between the trustee company and the fund. The amount recognised as revenue is exclusive
of GST.
l. Commodities sales are accounted as per the terms of agreement with parties.
m. Sale during the course of import by transfer of documents of title i.e. high seas sale is booked upon transfer of documents
of title to the goods in favour of buyer before the goods cross the custom frontiers of India.
n. The Group recognises incremental costs of obtaining a contract with a customer as an asset if it expects to recover those
costs. This asset is amortised to profit or loss on a systematic basis consistent with the transfer to the customer of the
goods or services to which the asset relates.
o. Lease rentals are recognised as income in Statement of Profit and Loss on a straight-line basis over the lease term. Costs
related to operating and maintenance of investment property is recognised as expense.
p. Insurance and other claims are recognised as revenue on certainty of realisation.
q. Profit or loss on sale of investments is recognised on trade date basis.
5.13 Leases
Group as a lessee
The Group has applied IND AS 116 using the partial retrospective approach.
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period in exchange for consideration. The Group applies a single recognition and
measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease
liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
Right of use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives
of the assets.

5.13 Leases (Continued)
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. In calculating the present value of lease payments, the Group uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change
in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or
rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
Short term lease
The Group has elected not to recognise right of use asset and lease liabilities for short term leases of property that has lease
term of 12 months or less. The Company recognises lease payment associated with these leases as an expense on a straight-
line basis over lease term.
Group as lessor
The Group’s accounting policy under Ind AS 116 has not changed from the comparative period. As a lessor the Group classifies
its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of the underlying asset and classified as an operating lease if it does not.
5.14 Earnings per share
Basic earnings per share is computed by dividing the net profit after tax attributable to the equity shareholders for the year
by the weighted average number of equity shares outstanding for the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares
were exercised or converted during the year. Diluted earnings per share is computed by dividing the net profit after tax
attributable to the equity shareholders for the year by weighted average number of equity shares considered for deriving
basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all
potential equity shares.
5.15 Foreign currency transactions
The consolidated financial statements are presented in Indian Rupees which is also functional currency of the Parent.
Transactions in currencies other than Indian Rupees (i.e. foreign currencies) are recognised at the rates of exchange prevailing
at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non- monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign currency are not retranslated
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

5.16 Retirement and other employee benefit
Provident fund and national pension scheme
The Group contributes to a recognised provident fund and national pension scheme which is a defined contribution scheme.
The contributions are accounted for on an accrual basis and recognised in the statement of profit and loss.
Gratuity
The Group’s gratuity scheme is a defined benefit plan. The Group’s net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current
and prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is
deducted. The present value of the obligation under such benefit plan is determined based on independent actuarial valuation
using the Projected Unit Credit Method. Benefits in respect of gratuity are funded with an Insurance company approved by
Insurance Regulatory and Development Authority (IRDA).
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the
net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods Compensated Absences.
The eligible employees of the Group are permitted to carry forward certain number of their annual leave entitlement to
subsequent years, subject to a ceiling. The Group recognises the charge in the statement of profit and loss and corresponding
liability on such non- vesting accumulated leave entitlement based on a valuation by an independent actuary. The cost of
providing annual leave benefits is determined using the projected unit credit method.
5.17 Share-based payment arrangements
Equity-settled share- based payments to employees are granted by the ultimate parent Company. These are measured by
reference to the fair value of the equity instruments at the grant date. These includes Stock Appreciation Rights (SARs) where
the right to receive the difference between the SAR price and the market price of equity shares of the ultimate parent Company
on the date of exercise, either by way of cash or issuance of equity shares of the ultimate parent Company, is at the discretion
of the ultimate parent Company. These are classified as equity settled share-based transaction.
The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period,
based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At
the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The
impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to the ’ESOP reserve’. In cases where the share options granted vest
in instalments over the vesting period, the Group treats each instalment as a separate grant, because each instalment has a
different vesting period, and hence the fair value of each instalment differs.

5.18 Property, plant and equipment and right – of – use assets
Property plant and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated depreciation
and accumulated impairment in value. Changes in the expected useful life are accounted for by changing the amortisation
period or methodology, as appropriate, and treated as changes in accounting estimates.
Subsequent costs incurred on an item of property, plant and equipment is recognised in the carrying amount thereof when those
costs meet the recognition criteria as mentioned above. Repairs and maintenance are recognised in profit or loss as incurred.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives. Depreciation is provided on a written down value basis from the date the
asset is ready for its intended use or put to use whichever is earlier. In respect of assets sold, depreciation is provided upto
the date of disposal.
As per the requirement of Schedule II of the Companies Act, 2013, the Group has evaluated the useful lives of the respective
property, plant and equipment which are as per the provisions of Part C of the Schedule II for calculating the depreciation.
The estimated useful lives of the property, plant and equipment are as follows:
Estimated useful lives of the assets are as follows:
Nature of assets Estimated useful life

Building (other than Factory Building) 60 years
Plant and Equipments 15 years
Furniture and fixtures 10 years
Vehicles 8 years
Vessel (Boat) 13 years
Office Equipment 5 years
Computers - Servers and networks 6 years
Computers - End user devices, such as desktops, laptops, etc. 3 years
Solar power plant 15 years
Change in accounting policy for land and buildings from 31st March 2020
Land and buildings are subsequently shown at fair value based on periodic valuations by external independent valuers, less
subsequent depreciation for buildings. Valuations will be carried out on a regular basis, unless the management consider it
appropriate to have an earlier revaluation, such that the carrying amount of property does not differ materially from that
which would be determined using fair values at the end of the reporting period. Any accumulated depreciation at the date
of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued
amount of the asset (Refer note no. 19 for details).
Subsequent measurement of land and building under revaluation model
Increases in the carrying amount arising on revaluation of land and buildings are credited to other comprehensive income
and shown as a revaluation reserve in shareholders’ equity. An exception is a gain on revaluation that reverses a revaluation
decrease (impairment) on the same asset previously recognised as an expense. Decreases that offset previous increases of the
same asset are charged in other comprehensive income and debited against the revaluation reserve directly in equity; all other
decreases are charged to profit or loss. Each year the difference between depreciation based on the revalued carrying amount
of the asset charged to profit or loss and depreciation based on the asset’s original cost is transferred from the revaluation
reserve to retained earnings.

5.18 Property, plant and equipment and right – of – use assets (Continued)
Right-of-use assets are presented together with property and equipment in the statement of financial position – refer to the
accounting policy 5.13. Right-of-use assets are depreciated on a straight-line basis over the lease term.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. The carrying amount of those components which have been separately recognised
as assets is derecognised at the time of replacement thereof. Any gain or loss arising on the disposal or retirement of an item
of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in profit or loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate
5.19 Intangible assets
The Group’s intangible assets mainly include the value of computer software and management rights. An intangible asset is
recognised only when its cost can be measured reliably and it is probable that the expected future economic benefits that
are attributable to it will flow to the Group.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is their fair value as at the date of acquisition. Following initial recognition, intangible assets are carried
at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are
amortised over the useful economic life.
5.20 Impairment of non-financial assets
The Group assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal/
external factors. If any such indication exists, the Group estimates the recoverable amount of the asset. If such recoverable
amount of the asset or the recoverable amount of cash generating unit which the asset belongs to is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is
recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount
subject to a maximum of the depreciable historical cost.
5.21 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less.
5.22 Provisions and other contingent liabilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows to net present value using an appropriate pre- tax discount rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability.

5.22 Provisions and other contingent liabilities (Continued)
A present obligation that arises from past events, where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are
also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. Claims
against the Group, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent
liabilities.
Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may
never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset
and is recognised.
5.23 Income tax expenses
Income tax expense represents the sum of the tax currently payable and deferred tax.
5.23.1 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported
in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible. The Group’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
5.23.2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.
Deferred tax assets are also recognised with respect to carry forward of unused tax losses and unused tax credits to the extent
that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can
be utilised.
It is probable that taxable profit will be available against which a deductible temporary difference, unused tax loss or unused
tax credit can be utilised when there are sufficient taxable temporary differences which are expected to reverse in the period
of reversal of deductible temporary difference or in periods in which a tax loss can be carried forward or back. When this is
not the case, deferred tax asset is recognised to the extent it is probable that:
 the entity will have sufficient taxable profit in the same period as reversal of deductible temporary difference or periods
in which a tax loss can be carried forward or back; or
 tax planning opportunities are available that will create taxable profit in appropriate periods.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

5.23 Income tax expenses (Continued)
5.23.2 Deferred tax (Continued)
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end
of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in
which the subsidiaries expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.
Minimum alternate tax (MAT)
MAT paid in a year is charged to the statement of profit and loss as current tax. The Group recognises unused MAT credit as a
deferred tax asset only to the extent that it is probable that the Group will be able to utilise during the specified period, i.e.,
the period for which MAT credit is allowed to be carried forward. In the year in which the Group recognises deferred tax asset
(MAT credit) as an asset, the said asset is created by way of credit to the statement of profit and loss. The Group reviews the
MAT asset at each reporting date and writes down the asset to the extent that it is not probable that the Group will be able
to utilise it during the specified period.
5.24 Investment properties
Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment
property and are measured and reported at cost, including transaction costs.
Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual
values over their useful lives specified in Schedule II to the Companies Act, 2013 or in the case of assets where the useful
life was determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each
financial year end to reflect the expected pattern of consumption of the future benefits embodied in the investment property.
The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the
estimates of useful life/residual value is accounted on prospective basis.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from
use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is
recognised in the Statement of Profit and Loss in the same period.

5.25 Business Combination
The acquisition method of accounting is used for business combinations by the Group. The cost of an acquisition is measured as
the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling
interests in the acquiree. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at
their acquisition date fair values with certain limited exceptions. Goodwill is initially measured as the excess of the aggregate
of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over
the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is tested for impairment annually
or more frequently if impairment indicators exists. For the purpose of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit
from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
Business combination under common control
Common control business combinations includes transactions, such as transfer of subsidiaries or businesses, between entities
within a group. Group has accounted all such transactions based on pooling of interest method, which is as below:-
 The assets and liabilities of the combining entities are reflected at their carrying amounts.
 No adjustments are made to reflect fair values, or recognise any new assets or liabilities.
 The financial information in the financial statements in respect of prior periods are restated as if the business combination
had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of
the combination.
The identity of the reserves shall be preserved and shall appear in the financial statements of the transferee in the same form
in which they appeared in the financial statements of the transferor. The difference, if any, between the amount recorded as
share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of
the transferor shall be transferred to capital reserve.
5.26 Inventories:
Inventories are valued at weighted average cost or net realisable value whichever is lower.
5.27 Significant accounting policies of life insurance business (Edelweiss Tokio Life Insurance Company Limited (“ETLIFE”):
a. Product classification
Insurance contract
Insurance contracts are those contracts when ETLIFE has accepted significant insurance risk from the policyholders by
agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the
policyholders.
As a general guideline, ETLIFE determines whether it has significant insurance risk, by comparing benefits paid with
benefits payable if the insured event did not occur. Such contract remains an insurance contract for the remainder
of its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are
extinguished or expire. Contracts can be classified as insurance contracts after inception if insurance risk becomes
significant.

(Continued)
a. Product classification (Continued)

Investment contract
Investment contracts are those contracts which are not insurance contract. Investment contracts are those contracts that
transfer financial risk with no significant insurance risk. Investment contracts can, however, be reclassified as insurance
contracts after inception if insurance risk becomes significant. Some insurance and investment contracts contain a
discretionary participation feature (DPF), which is a contractual right to receive additional benefits as a supplement to
guaranteed benefits.
Insurance and investment contracts are further classified as with DPF, Linked Business and Others. Insurance contracts
and investment contracts with DPF are measured and accounted under existing accounting practices at the date of
transition to Ind AS which is in accordance with Ind AS 104.
b. Revenue recognition
 Premium Income
Premium income on insurance contracts and investment contracts with DPF are recognised as income when due
from policyholders. For regular premium contracts, receivables are recognised at the date when payments are
due.
In respect of linked business, premium income is recognised when the associated units are allotted. Top up
premiums paid by unit-linked policyholders are considered as single premium and recognised as income when
the associated units are created.
Where policies lapse due to non-receipt of premiums, then all the related premium income accrued but not
received from the date they are deemed to have lapsed is offset against premiums. Premium on lapsed policies
is recognised as income on receipt basis on reinstatement or revival of these policies.
 Reinsurance premium ceded
Reinsurance premium ceded is accounted at the time of recognition of premium income in accordance with the
treaty or in principle arrangement/agreement with the reinsurers.
 Income from Unit Linked Policies
Income from unit-linked policies, which include fund management charges, policy administration charges,
mortality charges and other charges, wherever applicable, are recovered from the unit-linked funds in accordance
with the terms and conditions of the policies issued and are recognised as and when due.
 Fee management charges of investment contract
Investments contract policyholders are charged fees for policy administration, investment management,
surrenders or other contract services. The fees may be fixed amounts or vary with the amounts being managed
and will generally be charged as an adjustment to the policyholder’s balance. The fees are recognised as revenue
in the period in which they are collected unless they relate to services to be provided in future periods, in which
case they are deferred and recognised as and when the services are provided.
 Interest income on policy loans is recognised using effective interest rate method

(Continued)
c. Acquisition costs
Acquisition cost which are primarily relatable to the acquisition of insurance and investment contracts with DPF are
expensed in the period in which they are incurred.
For investment contracts with or without DPF, acquisition costs that are directly attributable to securing an investment
contract are deferred and amortised over the period in which the service is provided.
Benefits paid:
Benefits paid consists of the policy benefit and claim settlement costs, if any.
 Non-linked business
Death, rider, withdrawals and surrender claims are accounted for on receipt of intimation. Maturity, survival
benefit and annuities are accounted when due.
 Linked-business
Death and rider are accounted for on receipt of intimation. Maturity claims and survival benefit are accounted for
on due basis. Surrenders and withdrawals are accounted for on receipt of intimation. Amount payable on lapsed/
discontinued policies are accounted for on expiry of lock in period of these policies.
 Reinsurance
Reinsurance claims receivable are accounted for in the same period as the related claim.
d. Reinsurance ceded
ETLIFE cedes reinsurance in the normal course of business, with retention limits varying by line of business. Premiums
ceded and claims reimbursed are presented on a gross basis in the statement of profit and loss.
Reinsurance assets primarily include balances due from reinsurance companies for ceded insurance. Amounts
recoverable from reinsurers are estimated in a manner consistent with the underlying contract liabilities, outstanding
claims provisions or settled claims associated with the reinsured policies and in accordance with the relevant reinsurance
contract.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of
impairment arises during the reporting period. Impairment occurs when there is objective evidence as a result of an
event that occurred after initial recognition of the reinsurance asset that the company may not receive all outstanding
amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the
company will receive from the reinsurer. The impairment loss is recorded in the statement of Profit or loss.

(Continued)
e. Liability adequacy test
ETLIFE assesses at the end of each reporting period whether its recognised insurance liabilities are adequate, using
current estimates of future cash flows under its insurance contracts. If that assessment shows that the carrying amount
of its insurance liabilities is inadequate in the light of the estimated future cash flows, the entire deficiency shall be
recognised in the statement of profit or loss.
f. Policyholder Liability
Insurance contract and investment contract with DPF.
Insurance and investment contract with DPF claims / liabilities are measured using the accounting policies consistent
with those adopted previously under existing accounting practices.
Hence, the policyholder liabilities are calculated in accordance with the accepted actuarial practice, requirements
of Insurance Act, 1938 and amendments thereafter, applicable regulations notified by the Insurance Regulatory and
Development Authority of India (IRDAI), and Actuarial Practice Standards issued by the Institute of Actuaries of India.
g. Investment contracts without DPF
Liability in respect of investment contracts is recognised in accordance with Ind AS, taking into account accepted actuarial
practices.
h. Unclaimed amount of policyholders
 Assets held for unclaimed amount of policyholders is created and maintained in accordance with the requirement
of IRDAI Regulations and Investment Regulations, 2016 as amended from time to time.
 Unclaimed amount of policyholders’ assets grouped under other financial assets is invested in money market
instruments and / or fixed deposits of scheduled banks which are valued at amortised cost.
 Income on unclaimed amount of policyholders is credited to respective unclaimed account and is accounted for
on an accrual basis.
 Amount payable on account of income earned on assets held for unclaimed amount of policyholders is accounted
for on an accrual basis and is disclosed net of fund management charges.
 Unclaimed amount of policyholders’ liability grouped under trade payables is determined on the basis of NAV of
the units outstanding as at the valuation date.
 Amounts remaining unclaimed for a period of 10 years together with all respective accretions to the fund as per
the above mentioned regulations are deposited into the Senior Citizen Welfare Fund (SCWF).

5.28 Significant accounting policies of General insurance business (Edelweiss General Insurance Company Limited “EGICL”)
Revenue recognition in general insurance business
 Premium Income
Premium income including reinsurance accepted (net of goods and service tax), is recognised as income at the
commencement of risk over the contract period or the period of risk, whichever is appropriate, on a gross basis and
for instalment basis, it is recognised on instalment due dates. Reinstatement premium is recorded as and when such
premiums are recovered. Any subsequent revisions to premium are recognised in the year in which they occur over
the remaining period of risk or contract period, as applicable. Adjustments to premium income arising on cancellation
of policies are recognised in the period in which they are cancelled. Premium received in advance represents premium
received prior to the commencement of the risk.
 Reinsurance Ceded
Insurance premium on ceding of the risk is recognised in the period in which the risk commences in accordance with
reinsurance arrangements with the reinsurers. Any subsequent revisions to, refunds or cancellations of premiums are
recognised in the year in which they occur. Premium on excess of loss reinsurance cover is accounted as per the terms
of the reinsurance arrangements. Adjustment to reinsurance premium arising on cancellation of policies is recognised
in the period in which they are cancelled.
 Commission income from reinsurance ceded
Commission from reinsurance ceded is recognised as income on ceding of reinsurance premium in the period of ceding
of risk. Profit commission under reinsurance treaties, wherever applicable, is recognised as income in the year of final
determination of profits as confirmed by reinsurers and combined with commission on reinsurance ceded.
 Reserve for Unexpired Risk
Reserve for unexpired risk represent that part of net written premium which is attributable to and allocated to the
succeeding accounting periods. Reserve for unexpired risk is calculated on net written premium on all unexpired policies
at the balance sheet date based on 1/365th method for all segments, other than Health insurance policies with Health
241 Add ON cover. In Marine Hull business it is subject to a minimum of 100%.
In Health insurance policies with Health 241 Add ON cover; the unexpired risk is calculated on net written premium on all
unexpired policies at the balance sheet date based on:
a. 1/730 basis where there is no claim reported in the 1st year of policy
b. 1/365 basis where the claim is reported in the 1st year of policy

5.28 Significant accounting policies of General insurance business (Edelweiss General Insurance Company Limited - “EGICL”)
(Continued)
 Claims Incurred
Claims incurred comprise of claims paid (net of salvage and other recoveries), change in estimated liability for outstanding
claims made following a loss occurrence reported and estimated liability for claims Incurred But Not Reported (IBNR)
and claims Incurred But Not Enough Reported (IBNER). Further, claims incurred also include specific claim settlement
costs comprising survey fees, legal expenses and other directly attributable costs. Claims (net of amounts receivable
from reinsurers/coinsurers) are recognised on the date of intimation based on internal management estimates or on
estimates from surveyors/insured in the respective revenue account(s).
Estimated liability for outstanding claims at balance sheet date is recorded net of claims recoverable from / payable to
co-insurers / reinsurers, salvage to the extent there is certainty of realisation and other recoveries. Estimated liability
for outstanding claims is determined by the management on the basis of ultimate amounts likely to be paid on each
claim, established by the management in light of past experience and progressively modified for changes as appropriate,
on availability of further information and in cases where claim payment period exceeds four years based on actuarial
valuation. These estimates include claim settlement costs likely to be incurred to settle outstanding claims.
IBNR reserves are provisions for claims that may have been incurred during the accounting period but have not been
reported or claimed. The IBNR provision also includes provision, for claims that have been incurred but are not enough
reported (IBNER). The provision for IBNR and IBNER is based on actuarial estimate duly certified by the Appointed
Actuary of EGICL. The actuarial estimate is derived in accordance with relevant IRDAI regulations and Guidance Note
GN 21 issued by the Institute of Actuaries of India. The Appointed Actuary has certified that the methodology and
assumptions used to estimate the liability are appropriate and in accordance with guidelines and norms issued by the
Institute of Actuaries of India in concurrence with the IRDAI regulations.
 Premium deficiency
Premium deficiency (‘PDR’) is recognised at segmental revenue account level, when the sum of expected net claim
costs, related expenses and maintenance costs (related to claims handling) exceed the reserve for unexpired risks. The
premium deficiency is calculated and duly certified by the Appointed Actuary.
6. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 5, the management is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.

6. Critical accounting judgements and key sources of estimation uncertainty (Continued)
6.1. Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations, that the management has made in the
process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in
the consolidated financial statements.
a. Business model assessment
Classification and measurement of financial assets depends on the results of the solely payments of principal and interest
(SPPI) and the business model test. The Group determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This assessment includes judgement
reflecting all relevant evidence including how the performance of the assets is evaluated and their performance is
measured, the risks that affect the performance of the assets and how these are managed and how the managers of the
assets are compensated. The Group monitors financial assets measured at amortised cost that are derecognised prior
to their maturity to understand the quantum, the reason for their disposal and whether the reasons are consistent with
the objective of the business for which the asset was held. Monitoring is part of the Group’s continuous assessment of
whether the business model for which the remaining financial assets are held continues to be appropriate and if it is
not appropriate whether there has been a change in business model and so a prospective change to the classification
of those assets.
b. Significant increase in credit risk
ECL is measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL for stage 2 or stage 3 assets.
An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. In assessing whether
the credit risk of an asset has significantly increased the Group takes into account qualitative and quantitative reasonable
and supportable forward-looking information.
c. Consolidation of structured entities
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in
deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant
activities are directed by means of contractual arrangements. In the context of the Group, structured entities comprise
securitisation trusts in asset reconstruction business, mutual fund schemes and alternative investment funds / schemes
thereof. The Group consolidates the structured entities that it controls. When making this judgement, the Group also
considers voting and similar rights available to itself and other parties, who may limit the Group’s ability to control,
including rights to appoint, reassign or remove members of the structured entity’s key management personnel who
have the ability to direct the relevant activities, the exposure to variability of returns and whether the Group has the
ability to use its power to affect the amount of the Group’s returns i.e. the variability of returns in relation to the total
returns of the investee entity.
d. Determining lease term for lease contracts with renewal and termination option
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised.

6.1. Critical judgements in applying accounting policies (Continued)
The Group has several lease contracts that include extension and termination options. The Group applies judgement in
evaluating whether it is reasonably certain, whether or not, to exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the
commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is
within its control that affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction
of significant leasehold improvements or significant customisation of the leased asset).
6.2 Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, as described below. The Group based its assumptions and estimates on parameters
available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group.
Such changes are reflected in the assumptions when they occur.
a. Fair value of financial instruments
The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction in the principal (or most advantageous) market at the measurement date under current
market conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated using another
valuation technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be derived from active markets, they are determined using a variety of valuation techniques that include the use of
valuation models. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, estimation is required in establishing fair values.
For Investments made into Security receipts (SRs), Group uses discounted cash flow model, given that the SRs are less
liquid instruments. Expected cash flow levels including timing of cash flows are estimated by using quantitative and
qualitative measures regarding the characteristics of the underlying assets including default rates, nature and value of
collaterals, manner of resolution and other economic drivers. For any valuation which are based on models, Judgements
and estimates are applied, which include considerations of liquidity, credit risk (both own and counterparty), funding
value adjustments, correlation and volatility.
b. Impairment of financial assets
The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the
estimation of the amount and timing of future cash flows and collateral values when determining impairment losses
and the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes
in which can result in different levels of allowances.
The Group’s ECL calculations are outputs of models with a number of underlying assumptions regarding the choice of
variable inputs and their interdependencies. Elements of the ECL models that are considered accounting judgements
and estimates include:
 PD calculation includes historical data, assumptions and expectations of future conditions.

6.2 Key sources of estimation uncertainty (Continued)

b. Impairment of financial assets (Continued)
 The Group’s criteria for assessing if there has been a significant increase in credit risk and so allowances for
financial assets should be measured on a life-time expected credit loss and the qualitative assessment
 The segmentation of financial assets when their ECL is assessed on a collective basis
 Development of ECL models, including the various formulas and the choice of inputs
 Determination of associations between macroeconomic scenarios and, economic inputs, such as unemployment
levels and collateral values, and the effect on PDs, EAD and LGD
 Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the economic
inputs into the ECL models
It is Group’s policy to regularly review its models in the context of actual loss experience and adjust when necessary.
c. Effective interest rate method
The Group’s EIR methodology, as explained in Note 5.1, recognises interest income / expense using a rate of return that
represents the best estimate of a constant rate of return over the expected behavioural life of loans given / taken and
recognises the effect of characteristics of the product life cycle.
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the
instruments, as well expected changes fee income/expense that are integral parts of the instrument.
d. Accounting for deferred taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.
The Group has recognised deferred tax assets on carried forward tax losses with respect to certain subsidiaries where the
Group believes that the said deferred tax assets shall be recoverable based on the estimated future taxable income which
in turn is based on approved business plans and budgets. The losses are allowed to be carried forward to the years in which
the Group expects that there will be sufficient taxable profits to offset these losses.
e. Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (‘IBR’) to measure lease liabilities. Incremental borrowing rate is the rate of interest that the Group would have to
pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic environment.
f. Asset liability management
Management has made an assessment of its ability to continue and is satisfied that it has the resources to continue in
business for the foreseeable future.
7. Standards issued but not yet effective
There are no new standard or amendment issued but not effective.

8. Cash and cash equivalents

31-Mar-21 31-Mar-20
Cash in hand 35.23 4.81
Cheques in hand 231.91 44.41
Balances with banks: (refer note 1 below)
- in Current accounts 24,311.51 28,234.79
- in fixed deposits with original maturity less than 3 months 14,406.50 21,141.18
Total 38,985.15 49,425.19
Note 1:
Pledged bank balance/fixed deposits aggregating to ` 802.35 million ( previous year ` 4,623.07 million) against NCD issued.
9. Bank Balance other than cash and cash equivalents

31-Mar-21 31-Mar-20
Fixed deposits at amortised cost (refer Note 1 below) 8,608.72 36,657.89
(held as margin money or security against borrowings, guarantees)
In unpaid dividend accounts 8.19 13.00
Total 8,616.91 36,670.89
Note 1:
• Pledged fixed deposit aggregating to ` 2,258.48 million (previous year ` 6,284.86 million) with bank for securing credit
facilities, obtaining bank guarantees, securitisation contracts and meeting margin requirement for trading in cross
currency swaps and forward margin.
• Pledged fixed deposit aggregating to ` 16.94 million (previous year ` 18,228.05 million) with exchange to meet margin
requirement.
• Pledged fixed deposit aggregating to ` 73.02 million (previous year ` 41.89 million) with VAT, CST and excise authorities.
• Pledged fixed deposit aggregating to ` Nil million (previous year ` 22.42 million) with exchange towards arbitration.
• Pledged fixed deposit aggregating to ` 41.88 million (previous year ` 56.39 million) with agriculture produce market
committee for obtaining Mandi license.
• Pledged fixed deposit aggregating to ` 5.00 million (previous year ` 5.00 million) with IRDA.
• Earmarked with bank for a specific purpose ` Nil million (previous year ` 6,503.70 million) and therefore not available
for immediate and general use.

10. Derivative financial instruments

31-Mar-21 Notional Fair value of Notional Fair value of
amount (Units) asset (`) amount (Units) liability (`)
(i) Currency derivatives
Spot and forwards - - 31,33,541 444.04
Currency Futures 1,22,71,000 6.15 4,72,86,000 8.71
Options purchased 10,08,16,879 125.54 - -
Options sold - - 12,06,74,406 116.87
Less: amounts offset (refer note 10.1) - (6.15) - (569.62)
Sub total (i) 125.54 -
(ii) Interest rate derivatives

Forwards and Interest Rate Swaps 8,00,56,32,250 55.01 9,64,90,14,150 77.86
Futures 32,000 0.01 35,02,000 0.36
Subtotal (ii) 55.01 77.86
(iii) Equity linked derivatives

Stock Futures 1,67,33,835 106.30 1,53,21,173 91.53
Options purchased 27,13,226 172.25 - -
Options sold (written) - - 23,25,726 31.73
Subtotal (iii) 172.25 31.73
(iv) Index linked derivatives

Index Futures 2,24,944 18.97 4,66,775 16.36
Options purchased 2,41,95,400 2,525.44 14,02,750 204.79
Options sold (written) - - 2,21,97,475 367.90
Subtotal (iv) 2,525.44 362.57
(v) Embedded derivatives

In market linked debentures Not Applicable 23.79 Not Applicable 1,373.35
Subtotal (v) 23.79 1,373.35
Total 2,902.03 1,845.51

Spot and forwards 34,39,607 0.03 1,01,84,303 216.14
Currency Futures 3,00,00,000 29.14 3,08,86,000 24.07
Options purchased 29,46,21,000 485.50 - -
Options sold - - 29,91,85,000 527.23
Sub total (i) 485.51 -

10. Derivative financial instruments (Continued)

(ii) Interest rate derivatives
Forwards and Interest Rate Swaps 4,25,00,00,000 85.65 7,75,00,00,000 162.84
Futures 10,00,000 1.31 4,39,60,000 38.74
Subtotal (ii) 85.65 162.84
(iii) Equity linked derivatives

Stock Futures 56,55,939 43.50 92,24,636 55.87
Swaps - - 1,45,550 0.24
Subtotal (iii) - -
(iv) Index linked derivatives

Index Futures 2,99,045 10.23 14,71,365 154.86
Options purchased 1,13,32,750 2,112.95 - -
Options sold (written) - - 2,28,60,665 3,331.92
Subtotal (iv) 2,112.95 2,914.63
(v) Embedded derivatives

In market linked debentures Not Applicable 2,637.76 Not Applicable 735.01
Subtotal (v) 2,637.76 735.01
Total 5,321.87 3,812.48
Notes
1. Notional amounts in the above tables refer to number of underlying equity shares in case of stock futures and options, number
of underlying index units in case of index-linked derivatives, number of underlying currency units in case of currency derivatives,
number of underlying government securities / bonds in case of interest rate futures, amount of notional currency in case of
interest rate swaps.
2. Group has designed a risk based strategy to cover exposure on issued Benchmarked Linked Debentures, by entering into a
derivative contracts either to minimise the loss or to earn a minimum committed income by entering into a combination of
derivative contracts (say for example purchased call and put options) with a wide range of strike prices. Above strategy has
been approved by the risk committee of respective subsidiary Companies in the Group and ensures that risk is fully or partially
covered, which supports to reduce the risk exposure.

10 Derivative financial instruments (Continued)

10.1 Offsetting:
The tables below summarise the financial assets and liabilities subject to offsetting, enforceable master netting and similar agreements, as well as financial collateral
received to mitigate credit exposures for these financial assets, and whether offset is achieved in the balance sheet:
Financial assets subject to offsetting, netting arrangements
As at 31 March 2021:
Financial assets subject to offsetting Offsetting recognised Netting potential not Assets not Total Maximum
in the balance sheet recognised in balance sheet subject assets Exposure to
to netting Risk
arrangements
Gross Amount Net asset Financial Collateral Assets after Assets Recognised After
asset offset* recognised liabilities received consideration recognised in in the consideration
before in balance of netting the balance balance of netting
offset sheet potential sheet sheet potential
Derivative financial assets 2,944.75 131.43 2,813.32 50.68 5.38 2,757.26 88.71 2,902.03 2,845.97
Cash settlement balances from 158.11 - 158.11 - - 158.11 - 158.11 158.11
clearing houses
Offset against the Margin (158.11) - (158.11) - - (158.11) - (158.11) (158.11)
(Refer to other financial asset
Receivable from exchange /
clearing house (net))
Margin placed with broker 652.18 0.30 651.88 - - 651.88 - 651.88 651.88
Financial liabilities subject to offsetting Offsetting recognised Netting potential not Liabilities Total Maximum
in the balance sheet recognised in balance not subject liabilities Exposure to
sheet to netting Risk
arrangements
Gross Amount Net Financial Collateral Liabilities Liabilities Recognised After
liability offset* liability assets paid after recognised in the consideration
before recognised consideration on balance of netting
offset in balance of netting the balance sheet potential
sheet potential sheet
Derivative financial liabilities 2,386.47 887.99 1,498.48 50.68 10.70 1,437.10 347.03 1,845.51 1,784.13

10 Derivative financial instruments (Continued)

10.1 Offsetting: (Continued)
As at 31 March 2020:
Financial assets subject to offsetting Offsetting recognised Netting potential not Assets not Total assets Maximum
in the balance sheet recognised in balance sheet subject Exposure to

to netting Risk
arrangements
Gross Amount Net asset Financial Collateral Assets after Assets Recognised After
asset offset* recognised liabilities received consideration recognised in in the consideration
before in balance of netting the balance balance of netting
offset sheet potential sheet sheet potential
Derivative financial assets 3,138.69 84.20 3,054.49 97.83 (54.82) 3,011.48 2,267.38 5,321.87 5,278.86
Cash settlement balances from 160.02 - 160.02 - - 160.02 - 160.02 160.02
clearing houses
Offset against the Margin (160.02) - (160.02) - - (160.02) - (160.02) (160.02)
(Refer to other financial asset
Receivable from exchange / clearing
house (net))
Margin placed with broker 1,310.89 67.19 1,243.70 - - 1,243.70 - 1,243.70 1,243.70
Financial liabilities subject to offsetting Offsetting recognised Netting potential not Liabilities Total Maximum
in the balance sheet recognised in balance not subject liabilities Exposure to
sheet to netting Risk
arrangements
Gross Amount Net Financial Collateral Liabilities Liabilities Recognised After
liability offset* liability assets paid after recognised in the consideration
before recognised consideration on balance of netting
offset in balance of netting the balance sheet potential
Derivative financial liabilities 4,345.35 1,434.44 2,910.91 - - 2,910.91 901.57 3,812.48 3,812.48
*As at the reporting date the amount of cash margin received that has been offset against gross derivative assets ` 131.43 million (Previous year ` 84.20
million). As at the reporting date the amount of cash margin paid that has been offset against gross derivative liability ` 887.99 million (Previous year ` 1,435.20
million).
11. Stock in trade (Securities held for trading) at FVTPL

31-Mar-21 31-Mar-20
Government Securities 8,636.63 7,462.91
Mutual Fund 1,136.21 6,500.47
Debt securities 246.93 707.83
Equity Shares 5,726.99 2,786.73
Preference Shares - 0.13
Total 15,746.76 17,458.07
Investments in India 15,160.89 16,396.11

Investments outside India 585.87 1,061.96
Total 15,746.76 17,458.07
Note: Stock in trade pledged with exchange is amounting to ` 1,477.90 million (previous year ` 1,522.19 million).
12. Trade Receivables

31-Mar-21 31-Mar-20
Receivables considered good - secured 103.17 3,121.42
Receivables considered good - unsecured 2,553.17 5,728.34
Receivables which have significant increase in credit risk 334.89 1,453.94
Receivables - credit impaired 4,235.66 5,068.92
Gross receivables 7,226.89 15,372.62
Provision for impairment - unsecured (128.84) (39.76)
Allowance for expected credit losses - Receivables which have significant increase in credit risk (285.97) (304.63)
Provision for impairment - credit impaired (1,751.59) (1,975.85)
Total receivables net of provision 5,060.49 13,052.38
Trade Receivables - Ageing

31-Mar-21 Days past due 0-90 days 91-180 days >180 days Total
ECL rate 1.74% 15.23% 39.63%
Total Gross amount 1,623.14 339.73 5,264.02 7,226.89
ECL - simplified approach (28.26) (51.76) (2,086.38) (2,166.40)
Net carrying amount 1,594.88 287.97 3,177.64 5,060.49
31-Mar-20 Days past due 0-90 days 91-180 days >180 days Total
ECL rate 0.74% 12.58% 34.25%
Total Gross amount 8,446.11 528.69 6,397.82 15,372.62
ECL - simplified approach (62.32) (66.51) (2,191.41) (2,320.24)
Net carrying amount 8,383.79 462.18 4,206.41 13,052.38
12.1 Reconciliation of impairment allowance on trade receivables:

Particulars Amount
Impairment allowance measured as per simplified approach
Impairment allowance as on 31-Mar-19 2,210.88
Add/ (less): asset originated or acquired (net) 109.36
Add/ (less): asset originated or acquired (net) (153.84)

13. Loans
31-Mar-21 31-Mar-20
Particulars at amortised at FVTPL Total at amortised at FVTPL Total
cost cost
Term Loans
Corporate and Retail Credit 2,45,717.42 2,089.30 2,47,806.72 2,95,439.63 5,479.21 3,00,918.84
Distressed Credit 13,223.15 - 13,223.15 12,882.28 - 12,882.28
Other Credit 154.43 - 154.43 140.13 - 140.13
Total Gross (A) 2,59,095.00 2,089.30 2,61,184.30 3,08,462.04 5,479.21 3,13,941.25
Less: Impairment loss allowance 42,078.84 - 42,078.84 30,334.46 - 30,334.46

Total (Net) (A) 2,17,016.16 2,089.30 2,19,105.46 2,78,127.58 5,479.21 2,83,606.79
Secured by tangible assets (Property 2,19,325.41 2,089.30 2,21,414.71 1,99,222.69 5,479.21 2,04,701.90
including land, building and project
receivables)
Secured by Inventories, fixed deposits 16,610.60 - 16,610.60 83,799.24 - 83,799.24
and other marketable securities
Unsecured 23,158.99 - 23,158.99 25,440.11 - 25,440.11
Total Gross (B) 2,59,095.00 2,089.30 2,61,184.30 3,08,462.04 5,479.21 3,13,941.25

Total (Net) (B) 2,17,016.16 2,089.30 2,19,105.46 2,78,127.58 5,479.21 2,83,606.79
Loans in India
Public sector - - - - - -
Others 2,59,095.00 2,089.30 2,61,184.30 3,08,461.65 5,479.21 3,13,940.86
Total Gross (C) 2,59,095.00 2,089.30 2,61,184.30 3,08,461.65 5,479.21 3,13,940.86

Total (Net) (C) (I) 2,17,016.16 2,089.30 2,19,105.46 2,78,127.19 5,479.21 2,83,606.40
Loans outside India - - - 0.39 - 0.39

Less: Impairment loss allowance - - - - - -
Total (Net) (C) (II) - - - 0.39 - 0.39
Total (C) (I) and (C) (II) 2,17,016.16 2,089.30 2,19,105.46 2,78,127.58 5,479.21 2,83,606.79

13 Loans (Continued)
13.1 Credit Quality
The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s internal grading and year-end stage classification. The
amounts presented are gross of impairment allowances. Details of the Group’s internal grading system are explained in Note 56.7 and policies on whether ECL
allowances are calculated on an individual or collective basis are set out in Note 56.7
Loans at amortised cost
31-Mar-21 31-Mar-20
Particulars
Stage I Stage II Stage III1,3 POCI Total Stage I Stage II Stage III1,3 POCI Total
Performing
High grade 85,292.34 - - - 85,292.34 1,50,803.15 147.38 - - 1,50,950.53
Standard grade 129.46 47,662.60 - - 47,792.06 123.26 61,441.58 45.64 - 61,610.48
Non-performing
Impaired - - 1,12,787.45 13,223.15 1,26,010.60 - - 83,018.75 12,882.28 95,901.03
Total 85,421.80 47,662.60 1,12,787.45 13,223.15 2,59,095.00 1,50,926.41 61,588.96 83,064.39 12,882.28 3,08,462.04
Gross carrying amount and corresponding ECL reconciliation – Loans

Non-credit impaired Credit impaired POCI Total
Stage I Stage II Stage III POCI
Gross Allowance Gross Allowance Gross Allowance Carrying Gross Allowance
Particulars carrying for ECL carrying for ECL carrying for ECL2 amount carrying for ECL
amount amount amount (Net of amount
Allowance
for ECL)
Balance at 31 March 2019 3,12,340.85 2,712.59 39,831.24 1,552.21 18,369.08 5,058.56 16,968.59 3,87,509.76 9,323.36
Effect of acquisitions made 14,063.46 - 3,607.85 - 4,979.04 - - 22,650.35 -

during the year
Transfers:
Transfers to 12 Month ECL 1,505.67 43.20 (1,486.58) (38.64) (19.09) (4.56) - - -
(Stage 1)
Transfers to lifetime ECL (36,377.44) (491.57) 36,422.89 498.92 (45.45) (7.35) - - -
(Stage 2)
Transfers to lifetime ECL- (45,563.42) (746.49) (25,073.88) (729.84) 70,637.30 1,476.33 - - -
Credit impaired (Stage 3)
Net re-measurement of ECL - 147.42 - 4,413.08 - 6,007.93 - - 10,568.43
arising from transfer of stage
Net new and further lending/ (95,042.71) 329.25 8,287.44 1,067.49 (10,856.49) 9,045.93 (4,086.31) (1,01,698.07) 10,442.67
(repayments) (including write-
off) and sale to ARC / AIF 3
Balance at 31 March 2020 1,50,926.41 1,994.40 61,588.96 6,763.22 83,064.39 21,576.84 12,882.28 3,08,462.04 30,334.46

13 Loans (Continued)
13.1 Credit Quality (Continued)
Gross carrying amount and corresponding ECL reconciliation – Loans
Non-credit impaired Credit impaired POCI Total
Stage I Stage II Stage III POCI
Gross Allowance Gross Allowance Gross Allowance Carrying Gross Allowance

Particulars carrying for ECL carrying for ECL carrying for ECL2 amount carrying for ECL
amount amount amount (Net of amount
Allowance
for ECL)
Effect of acquisitions made 47.01 - - - - - - 47.01 -
during the year
Transfers: - - - - - - -
Transfers to 12 Month ECL 4,691.44 810.59 (4,648.13) (803.53) (43.31) (7.06) - - -
(Stage 1)
Transfers to lifetime ECL (21,024.73) (526.76) 24,688.92 1,177.83 (3,664.19) (651.07) - - -
(Stage 2)
Transfers to lifetime ECL- (10,621.36) (25.46) (19,472.21) (737.78) 30,093.57 763.24 - - -
Credit impaired (Stage 3)
Net re-measurement of ECL - (776.89) - 481.75 - 8,753.15 - - 8,458.01
arising from transfer of stage
Net new and further lending/ (38,596.97) (195.57) (14,494.94) (2,487.22) 3,336.99 5,969.16 340.87 (49,414.05) 3,286.37
(repayments) (including write-
off) and sale to ARC / AIF3
Balance at 31 March 2021 85,421.80 1,280.31 47,662.60 4,394.27 1,12,787.45 36,404.26 13,223.15 2,59,095.00 42,078.84
1 This also includes stage III assets in EARC on distressed assets book, interest accrued on non-performing assets and stage III assets held by Group entities other than
NBFCs on trade and general purpose advances.
2 Allowance under this category also includes provision on assets as mentioned in note 1 above.
3 Refer Note 54.
14. Investments
Amortised FVOCI FVTPL Designated Others Total
31-Mar-21
cost at FVTPL at Cost
Security Receipts - - 37,478.90 - - 37,478.90
Government Securities - 13,671.98 1,256.67 8,125.37 - 23,054.02
Equity Shares 415.00 - 12,223.20 - - 12,638.20
Debt securities 1,305.81 3,159.10 3,771.26 2,600.89 - 10,837.06
AIF Fund - 11.28 9,953.39 - - 9,964.67
Mutual Fund - - 2,053.87 - - 2,053.87
Preference Shares - 15.83 1,771.44 - - 1,787.27
Associates - Equity Shares - - - - 16,755.80 16,755.80
others - - 1,184.65 - - 1,184.65
Total 1,720.81 16,858.19 69,693.38 10,726.26 16,755.80 1,15,754.44
Investments in India 1,720.34 16,772.57 69,472.19 10,726.26 16,755.80 1,15,447.16
Investments outside India 0.47 85.62 221.19 - - 307.28
Total 1,720.81 16,858.19 69,693.38 10,726.26 16,755.80 1,15,754.44
Less - Impairment Loss allowance - 11.28 980.14 - - 991.42
Total 1,720.81 16,846.91 68,713.24 10,726.26 16,755.80 1,14,763.02
Amortised FVOCI FVTPL Designated Others Total

31-Mar-20
cost at FVTPL at Cost
Security Receipts - - 42,646.81 - - 42,646.81
Government Securities - 11,653.91 923.51 5,549.92 - 18,127.34
Equity Shares - - 7,428.09 - - 7,428.09
Debt securities 243.86 3,363.24 2,407.70 1,882.93 - 7,897.73
AIF Fund - 13.10 4,275.39 - - 4,288.49
Mutual Fund - - 762.08 - - 762.08
Preference Shares - 24.58 1,916.77 13.19 - 1,954.54
Total 243.86 15,054.83 60,360.35 7,446.04 - 83,105.08
Investments in India 243.86 14,795.53 60,151.61 7,446.04 - 82,637.04
Investments outside India - 259.30 208.74 - - 468.04
Total 243.86 15,054.83 60,360.35 7,446.04 - 83,105.08
Less - Impairment Loss allowance - 439.06 - - - 439.06
Total 243.86 14,615.77 60,360.35 7,446.04 - 82,666.02
Note: Investments pledged with bank, exchange, brokers and against NCDs issued is amounting to ` 32,309.69 million(previous year ` 36,961.83
million)

14. Investments (Continued)

14.1 Investments measured at FVOCI
Credit quality of assets

The table below shows the gross carrying amount of the Group’s investments measured at FVOCI by credit risk, based on
the Group’s internal credit rating system and year-end stage classification. The amount presented are gross of impairment
allowances. Details of the Group’s internal grading system and policies on whether ECL allowances are calculated on an individual
or collective basis are set out in Note 56.7
31-Mar-21
Gross carrying Gross carrying Gross carrying Gross carrying
Particulars amount amount amount amount
(Stage 1) (Stage 2) (Stage 3) Total
High grade 16,183.92 - - 16,183.92
Standard grade - - - -
Individually impaired - - 674.27 674.27
Total 16,183.92 - 674.27 16,858.19
31-Mar-20
Gross carrying Gross carrying Gross carrying Gross carrying
Particulars amount amount amount amount
(Stage 1) (Stage 2) (Stage 3) Total
High grade 14,204.35 - - 14,204.35
Standard grade 31.23 - - 31.23
Individually impaired - - 819.25 819.25
Total 14,235.58 - 819.25 15,054.83
Reconciliation of gross carrying amount and corresponding ECL for investments measured at FVOCI
31-Mar-21
Gross Carrying 12 months Amount Gross 12 months
Particulars
Amount ECL allowance Carrying ECL allowance
(Stage 1) (Stage 1) (Stage 3) (Stage 3)
Gross carrying amount - opening balance 14,235.58 0.12 819.25 438.94
New assets originated or purchased 7,978.49 - - -
Assets derecognised or matured (excluding (7,108.47) - (156.26) (24.45)
write offs) (including gains / losses thereon)
Interest income during the year 1,119.84 - - -
Foreign Exchange (30.24) - - -
Transfer to Stage 1 - - - -
Transfer to Stage 3 (11.28) - 11.28 11.28
Impact of year end ECL of exposures transferred - - - (437.17)
between stages during the year
Gross carrying amount - closing balance 16,183.92 0.12 674.27 (11.40)

14. Investments (Continued)

14.1 Investments measured at FVOCI (Continued)
Reconciliation of gross carrying amount and corresponding ECL for investments measured at FVOCI (Continued)
31-Mar-20
Gross Carrying 12 months Gross Carrying 12 months
Particulars
Amount ECL allowance Amount ECL allowance
(Stage 1) (Stage 1) (Stage 3) (Stage 3)
Gross carrying amount - opening balance 12,826.50 21.50 - -
New assets originated or purchased 9,141.61 0.15 - -
Assets derecognised or matured (excluding write (8,320.81) - - -
offs) (including gains / losses thereon)
Interest income during the year 1,387.04 - - -
Foreign Exchange 20.49 - - -
Transfer to Stage 1 - 0.06 - -
Transfer to Stage 3 (819.25) (21.59) 819.25 21.59
Impact of year end ECL of exposures transferred - - - 417.35
between stages during the year
Gross carrying amount - closing balance 14,235.58 0.12 819.25 438.94
14.2 Investments measured at amortised cost

The table below shows the gross carrying amount of the Group’s investments measured at amortised cost by credit risk, based
on the Group’s internal credit rating system and year-end stage classification. The amount presented are gross of impairment
allowances. Details of the Group’s internal grading system and policies on whether ECL allowances are calculated on an individual
or collective basis are set out in Note 56.7
31-Mar-21 31-Mar-20
Gross carrying Gross carrying
Particulars
amount amount
(Stage 1) (Stage 1)
High grade 1,720.81 243.86
Standard grade - -
Individually impaired - -
Total 1,720.81 243.86
Reconciliation of gross carrying amount for investments measured at amortised cost

31-Mar-21 31-Mar-20
Gross carrying Gross carrying
Particulars
amount amount
(Stage 1) (Stage 1)
Gross carrying amount - opening balance 243.86 569.80
New assets originated or purchased 1,27,154.93 42,520.30
Assets derecognised or matured (excluding write offs) (including gains / losses thereon) (1,25,677.98) (42,855.17)
Changes to contractual cash flows due to modifications not resulting in derecognition - 8.93
Amounts written off - -
Transfer to Stage 1 (refer instruction above) - -
Gross carrying amount - closing balance 1,720.81 243.86

14 Investments (Continued)
14.3 Equity investment measured at FVOCI

The Group had designated its equity investments at FVOCI, since it were held for strategic purpose. No dividend was recognized
in respect of the such equity investments measured at FVOCI. The said investment were monitored on a continuous basis;
however due to deterioration in the economic activity, the reduction in the fair value amounting to ` Nil million (Previous year
` 1,700.00 million) was recognized in OCI. Fair value of the Investment at the date of derecognition was ` Nil million (Previous
year ` 1,305.00 million).
In order to protect against any further fair value loss/value erosion in respect of the said investment; such investment was
derecognized by converting these CCDs into NCDs and settled at face value of ` Nil million (Previous year ` 1,305.00 million).
The loss on the derecognition of such investment was ` Nil million (Previous year ` 1,700.00 million).
15. Other financial assets

Particulars 31-Mar-21 31-Mar-20
Receivable from Trust 6,252.87 1,712.00
Receivable towards margin trading facility - 964.01
Receivable from exchange / clearing house (net) 448.43 2,841.35
Deposits placed with/ for exchange/ depositories 130.79 535.88
Margin placed with broker 2,859.51 688.74
Rental deposits 191.85 396.63
Deposits- others 79.38 157.46
Reinsurance receivables 364.34 83.51
Unclaimed amount of policyholders 29.57 34.86
Others 2,271.33 887.89
Total 12,628.07 8,302.33
16. Inventories
Stock in trade commodities1 - 436.09
Total - 436.09
1
The above are agriculture commodity inventories. Refer note 23 for charge on inventories.
17. Deferred tax assets and liabilities

Deferred tax assets (net) 31-Mar-21 31-Mar-20
Provision for expected credit losses 2,317.78 3,912.40
Unused tax losses / credits 8,074.33 5,497.04
Employee benefits obligations 81.89 81.40
Fair valuation of Financial Assets 1,159.14 645.73
Fair valuation of Derivatives (15.53) 782.22
Property, Plant and Equipment and Intangible assets (917.91) (731.41)
Adjustment of effective interest rate on Borrowings (1,114.71) (622.63)
Total 9,584.99 9,564.75
Deferred tax liabilities (net) 31-Mar-21 31-Mar-20

Fair valuation of Financial Assets 498.17 626.65
Adjustment of effective interest rate on Loans 102.63 181.57
Adjustment of effective interest rate on Borrowings 13.52 -
Property, Plant and Equipment and Intangible assets 1,468.12 1,853.64
ESOP Perquisite (4.01) (4.01)
Employee benefits obligations (19.51) (14.10)
Unused tax losses / credits - (0.02)
Special Reserve u/s 36(1)(viii) 98.70 -
Total 2,157.62 2,643.73

18. Investment property

Gross Block Depreciation and impairment Net Block
As at Additions Deductions/ As at As at Impairment Charge for Deductions/ As at As at
Particulars 01-Apr-20 during the adjustments 31-Mar-21 01-Apr-20 charge / the year adjustments 31-Mar-21 31-Mar-21
year during the (reversals) during the
year for the year year
Investment Property
Land 1408.62 - - 1,408.62 18.27 - - - 18.27 1,390.35
Real Estate 3,445.13 272.10 1,041.23 2,676.00 378.21 348.69 - 55.18 671.72 2,004.28
Total 4,853.75 272.10 1,041.23 4,084.62 396.48 348.69 - 55.18 689.99 3,394.63
Gross Block Depreciation and impairment Net Block

As at Additions Deductions/ As at As at Impairment Charge for Deductions/ As at As at
Particulars 01-Apr-19 during the adjustments 31-Mar-20 01-Apr-19 charge / the year adjustments 31-Mar-20 31-Mar-20
year during the (reversals) during the
year for the year year
Investment Property
Land 228.35 1180.27 - 1,408.62 - - - (18.27) 18.27 1,390.35
Real Estate 2,953.83 491.30 - 3,445.13 37.67 323.03 17.51 - 378.21 3,066.92
Total 3,182.18 1,671.57 - 4,853.75 37.67 323.03 17.51 (18.27) 396.48 4,457.27
Fair value of investment properties

Property 31-Mar-21 31-Mar-20
Land 2,256.94 2,256.94
Real estate property 2,004.28 3,157.85
Total 4,261.22 5,414.79

19. Property, plant and equipment and intangibles

Gross Block Depreciation and amortisation Net Block
Particulars As at Additions/ Deductions/ As at As at Charge for Deductions/ As at As at
01-Apr-2020 adjustments adjustments 31-Mar-2021 01-Apr-2020 the year adjustments 31-Mar-2021 31-Mar-2021
during the year during the year during the year
a) Property, Plant and Equipments
Land 236.79 - - 236.79 - - - - 236.79

Leasehold Land 0.63 - 0.63 - 0.63 - 0.63 - -
Flat and Building 4,682.51 - (302.73) 4,985.24 683.40 395.23 89.00 989.63 3,995.61
Revaluation on Flat and Building & Land 7,034.62 - 466.88 6,567.74 (640.15) 214.82 (21.20) (404.13) 6,971.87
Right to use (ROU) - Flat and Building 2,687.59 252.57 1,568.56 1,371.60 623.73 442.14 351.86 714.01 657.59
Right to use (ROU) - Leasehold Premises 281.47 0.51 221.33 60.65 103.11 42.47 106.84 38.74 21.91
Plant and Equipment 197.14 82.79 31.67 248.26 115.09 84.05 35.58 163.56 84.70
Furniture and Fixtures 329.69 10.89 93.98 246.60 142.02 44.37 51.13 135.26 111.34
Vehicles 75.83 8.33 41.55 42.61 39.43 21.66 30.02 31.07 11.54
Office equipment 395.03 9.12 140.00 264.15 246.64 52.34 90.49 208.49 55.66
Vessel (Boat) 4.85 - - 4.85 0.89 0.13 0.04 0.98 3.87
Computers 1,022.83 167.45 698.42 491.86 656.04 243.92 510.29 389.67 102.19
Solar Power Equipment 62.07 - - 62.07 27.64 6.23 - 33.87 28.20
Total (A) 17,011.05 531.66 2,960.29 14,582.42 1,998.47 1,547.36 1,244.68 2,301.15 12,281.27
b) Intangibles
Software 2,704.93 426.59 1,312.52 1,819.00 1,172.64 688.31 766.32 1,094.63 724.37
Trademark/ Design and Copyright/Asset 756.55 34.32 - 790.87 33.05 14.45 - 47.50 743.37
Management Rights
Total (B) 3,461.48 460.91 1,312.52 2,609.87 1,205.69 702.76 766.32 1,142.13 1,467.74
Total (A+B) 20,472.53 992.57 4,272.81 17,192.29 3,204.16 2,250.12 2,011.00 3,443.28 13,749.01
19. Property, plant and equipment and intangibles (Continued)

Gross Block Depreciation and amortisation Net Block
Particulars As at Additions/ Deductions/ As at As at Charge for Deductions/ As at As at
01-Apr-2019 adjustments adjustments 31-Mar-2020 01-Apr-2019 the year adjustments 31-Mar-2020 31-Mar-2020
during the year during the year during the year
a) Property, Plant and Equipments
Land 236.79 - - 236.79 - - - - 236.79
Leasehold Land 43.14 - 42.51 0.63 0.70 0.01 0.08 0.63 -
Flat and Building (Refer Note 3) 4,613.90 192.78 124.17 4,682.51 477.69 224.13 18.42 683.40 3,999.11
Revaluation on Flat and Building & Land - 7,034.62 - 7,034.62 - - 640.15 (640.15) 7,674.77
(Refer Note 1)
Right to use (ROU) - Flat and Building* - 2,696.88 9.29 2,687.59 - 643.31 19.58 623.73 2,063.86
Leasehold Premises* 288.69 (288.69) - - 78.79 32.80 111.59 - -
Right to use (ROU) - Leasehold Premises* - 282.97 1.50 281.47 - - (103.11) 103.11 178.36
Plant and Equipment 74.69 122.45 - 197.14 68.97 46.12 - 115.09 82.05
Vehicles 88.25 12.11 24.53 75.83 22.40 17.22 0.19 39.43 36.40
Office equipment 273.13 172.31 50.41 395.03 185.66 94.84 33.86 246.64 148.39
Vessel (Boat) 1.07 3.78 - 4.85 0.40 0.49 - 0.89 3.96
Computers 999.25 181.32 157.74 1,022.83 514.14 237.87 95.97 656.04 366.79
Solar Power Equipment 62.07 - - 62.07 20.57 7.07 - 27.64 34.43
Total (A) 6,946.59 10,489.15 424.69 17,011.05 1,468.73 1,356.87 827.13 1,998.47 15,012.58
b) Intangibles
Software 2,296.21 596.71 187.99 2,704.93 619.32 601.09 47.77 1,172.64 1,532.29
Trademark/ Design and Copyright/Asset 668.42 88.13 - 756.55 62.73 23.75 53.43 33.05 723.50
Management Rights
Total (B) 2,964.63 684.84 187.99 3,461.48 682.05 624.84 101.20 1,205.69 2,255.79
Total (A+B) 9,911.22 11,173.99 612.68 20,472.53 2,150.78 1,981.71 928.33 3,204.16 17,268.37
*Transfer due to transition to Ind AS 116
Notes
1 The Group decided to move to revaluation model from cost model for accounting class of asset (i.e. Flats and buildings) as at 31 March 2020. The management approved revaluation of owned
flats and buildings classified under property plant and equipment after assessing the valuation made by duly appointed independent valuer. These valuations are determined basis open
market values of similar property and its intrinsic value. Flats and buildings are fair valued and recognised gain of ` 7,674.77 million. The gross carrying value of flats and building is increased
by ` 7,034.62 million after adjusting accumulated depreciation of ` 640.15 million. A revaluation surplus is accounted in other comprehensive income as revaluation reserves amounting to
` 5,139.92 million net of deferred tax liability of ` 2,534.83 million.
2 Property, plant and equipment aggregating to ` 1,447.54 million (previous year ` 844.74 million) pledged against secured NCDs and term loans.
3 hIncludes ` 12.37 million as asset held for sale.

19.1. Goodwill on consolidation

Balance at the beginning of the year 1,723.41 1,742.72
Add:- Goodwill arising on acquisitions - -
Less:- Goodwill derecognised / impaired (1,060.06) (19.31)
Balance at the end of year 663.35 1,723.41

The recoverable amount of subsidiaries/associates is based on its value in use. The value in use is estimated using discounted cash flows. Cash flows
is estimated by capitalising the future maintainable cash flows by an appropriate capitalisation rate and then discounted using pre-tax discount rate.
Operating margins and growth rates for the five year cash flow projections have been estimated based on past experience and after considering the
financial budgets/forecasts provided by the management. The values assigned to the key assumptions represent management’s assessment of future
trends in the relevant industry and have been based on historical data from both external and internal sources.
The management believes that any reasonably possible change in the key assumptions would not cause the carrying amount to exceed the recoverable
amount.
19.2. Goodwill impairment assessment

Goodwill acquired through business combinations has been allocated to following cash–generating unit (CGU), for impairment testing, as follows:
A. Impairment testing of goodwill in Broking and distribution business:
For 31 March 2021 - Refer note 67
Particulars 31-Mar-20
Goodwill 1,020.21
Carrying value of CGU (including goodwill) 1,635.35
Recoverable amount of CGU 2,655.56
Key assumptions in computing value in use:

Discount rate 13%
Total expected cash-flows for 5 years 5,370.00
The calculation of value in use is most sensitive to expected cash-flows and discount rate.
Key assumptions Basis of key assumptions and associated risk Reasonably assumed possible change
Discount rates Discount rates reflect the current market Increase/ decrease by 100 basis points
assessment of the risk associated.
Expected cash-flows Based on the projected cash-flows and Increase/ decrease by 500 basis points
expected increase in profit in the coming years.
19.2. Goodwill impairment assessment (Continued)
Sensitivity to changes in assumptions

Management performed a sensitivity analysis to assess impact of reasonable changes to key assumptions on statement of profit and loss keeping
other assumptions constant that could cause the carrying value of the CGU to exceed its recoverable amount. These are summarised in the table
below, which shows the details of the sensitivity of the above measures on the CGU’s value in use (VIU):
As at 31 March 2020
Goodwill VIU Discount rate Expected cash-flows
Amount Amount Impact Impact Impact Impact
Particulars Change Change Change Change
INR INR INR INR INR INR
bps bps bps bps
million million million million million million
1,020.21 3,490.00 100.00 (100.12) (100.00) 111.07 500.00 177.83 (500.00) (171.49)
B. Impairment testing of goodwill in Edelweiss House property
During the year ended 31 March 2021, goodwill amounting to ` 432.94 million is written off in the consolidated financial statement.
Goodwill 432.94
Carrying amount of CGU (including goodwill) 3,534.64
Recoverable amount 8,771.19
Fair value less cost of disposal is taken as the recoverable amount and compared with the carrying amount (excluding revaluation gains) for impairment testing.
Key assumptions in computing recoverable amount:

Basis of fair valuation:
Total carpet area of building (sq. feet) 1,86,550.00
Fair value of property (INR per sq. feet) 49,492.53
Total Fair value (in million) 9,232.83

Less: Cost of disposal (461.64)
Fair value less cost of disposal 8,771.19
Impairment assessment on goodwill is based on cashflow projection approved by Board of directors of respective subsidiaries.
The above fair value falls within level 3 of the fair value hierarchy.
Note: Balance goodwill recognised in the consolidated financial statements are from various legal entities and are not material.

20. Other non-financial assets

Input tax credit 1,595.28 1,548.61
Prepaid expenses 1,877.84 1,016.56
Vendor Advances 191.22 384.93
Capital Advances - 229.44
Advances to employees 9.56 29.48
Deposits - others 19.94 34.14
Other assets 112.82 390.07
Total 3,806.66 3,633.23
21.1 Trade Payables includes ` 1.22 million (Previous Year ` 2.21 million) payable to “Suppliers” registered under the Micro, Small
and Medium Enterprises Development Act, 2006. Interest paid by the Group during the year to “Suppliers” registered under
this Act is ₹ 0.003 million (Previous year: ₹ Nil million). The aforementioned is based on the responses received by the Group
to its inquiries with suppliers with regard to applicability under the said Act.
21.2 Trade payables

Total outstanding dues of creditors other than micro enterprises and small enterprises 4,893.56 12,831.39
Total 4,893.56 12,831.39
22. Debt securities

Non-Convertible Debentures (at amortised cost) 1,51,894.75 1,83,792.44
Complusory Convertible Debentures (at amortised cost) 9,443.98 11,042.44
Non-Convertible Debentures (designated at fair value through profit or loss) 8,750.76 10,779.73
Commercial paper (at amortised cost) 4,769.05 1,970.45
Total (refer Note 1 below) 1,74,858.54 2,07,585.06
(i) Debt securities in India 1,74,858.54 2,07,585.06

(ii) Debt securities outside India - -
Total 1,74,858.54 2,07,585.06
Note 1:
Out of the above, ` 14,971.91 million as at 31 March 2021 (Previous Year ` 16,179.72 million) are unsecured. For secured debt,
the Group has provided collateral in the nature of Pari Passu charge of immovable property, receivable from financing business,
securities held for trading, property (excluding intangible assets) and hypothecation of security receipts.

22. Debt securities (Continued)

Debt Securities - as at 31 March 2021
Maturities <1 years 1-3 years > 3 years Total
Rate of Interest
7.00 - 7.99% 738.80 - 6,000.00 6,738.80
8.00 - 8.99% 13,780.25 2,820.65 1,657.88 18,258.78
9.00 - 9.99% 10,097.30 17,183.86 16,419.20 43,700.36
10.00 - 10.99% 14,070.00 4,075.62 8,583.70 26,729.32
11.00 - 11.99% - 11,250.00 - 11,250.00
19.00 - 19.99% 210.00 420.00 2,870.00 3,500.00
22.00 - 22.99% 2,250.00 - - 2,250.00
Zero Coupon Debentures 688.95 1,495.86 303.16 2,487.97
Various (benchmark linked) 13,457.63 18,637.96 7,176.42 39,272.01
Accrued Interest and EIR - - - 11,227.32
Total* 55,292.93 55,883.95 43,010.36 1,65,414.56
* Complusory Convertible Debentures amounting to ` 9,443.98 million not considered for maturity pattern.

Rate of Interest
8.00 - 8.99% 5,848.58 7,529.58 12,948.14 26,326.30
9.00 - 9.99% 8,678.00 16,357.86 16,729.64 41,765.50
10.00 - 10.99% 2,067.45 16,086.82 12,170.38 30,324.65
11.00 - 11.99% - - 12,242.26 12,242.26
Zero Coupon Debentures 15,550.18 2,154.02 890.62 18,594.82
Various (benchmark linked) 11,894.70 22,592.11 20,602.56 55,089.37
Total* 44,038.91 64,720.39 75,583.60 1,96,542.62
* Complusory Convertible Debentures amounting to ` 11,042.44 million not considered for maturity pattern.
23. Borrowings (other than debt securities) at amortised cost

Secured
Term loans
(Secured against investments in debt securities and stock-in-trade and charge on
receivables of financing business, inventories and corporate guarantee)
from banks 66,551.55 86,522.48
from other parties 8,305.71 11,346.45
Bank overdraft 3,107.03 16,578.15
(Secured by pledge of fixed deposits, property, trade receivables and charge on receivables
of financing business)
Collateralised borrowing and lending obligation and Clearcorp repo order matching system 8,103.90 7,752.70
(Secured by pledge of Government Securities)
Working capital demand loan (secured by charge on receivables from financing business, 8,250.00 9,931.75
inventories and fixed deposits)
Unsecured
Loans repayable on demand - from banks - 1,079.02
94,318.19 1,33,210.55
Borrowings in india 94,318.19 1,33,210.55

Borrowings outside india - -
Total 94,318.19 1,33,210.55

23. Borrowings (other than debt securities) at amortised cost (Continued)
Following is the repayment terms of term loans:
Term loans from Banks - Secured as at 31 March 2021

Maturities <1 years 1-3 years > 3 years TOTAL
Rate of Interest
7.00 - 7.99% 363.09 601.19 247.05 1,211.33
8.00 - 8.99% 6,804.57 8,167.22 1,531.34 16,503.13
9.00 - 9.99% 19,739.32 18,037.66 2,919.45 40,696.43
10.00 - 10.99% 3,749.38 3,672.98 - 7,422.36
11.00 - 11.99% 494.40 312.49 46.88 853.77
14.00 - 14.99% 100.00 - - 100.00
Accrued Interest and EIR - - - (235.47)
Total 31,250.76 30,791.54 4,744.72 66,551.55
Term loans from Banks - Secured as at 31 March 2020

Rate of Interest
8.00 - 8.99% 11,982.87 17,823.68 660.42 30,466.97
9.00 - 9.99% 14,307.24 16,402.19 7,416.00 38,125.43
10.00 - 10.99% 6,925.65 8,702.45 1,085.06 16,713.16
11.00 - 11.99% 840.63 300.00 109.38 1,250.01
Total 34,056.39 43,228.32 9,270.86 86,522.48
Term loans from Others - Secured as at 31 March 2021

Rate of Interest
4.00 - 4.99% 119.28 318.08 197.08 634.44
5.00 - 5.99% 650.00 - - 650.00
6.00 - 6.99% 4.35 11.60 5.30 21.25
8.00 - 8.99% 37.68 54.79 41.01 133.48
9.00 - 9.99% 93.78 250.08 757.55 1,101.41
10.00 - 10.99% 2,767.00 2,824.00 175.00 5,766.00
Total 3,672.09 3,458.55 1,175.94 8,305.71
Term loans from Others - Secured as at 31 March 2020

Rate of Interest
4.00 - 4.99% 119.28 318.08 356.12 793.48
6.00 - 6.99% 4.35 11.60 11.10 27.05
8.00 - 8.99% 639.72 1,446.73 70.39 2,156.84
9.00 - 9.99% 1,604.00 3,325.08 1,188.60 6,117.68
10.00 - 10.99% 586.74 841.00 - 1,427.74
11.00 - 11.99% 375.00 450.00 - 825.00
Total 3,329.09 6,392.49 1,626.21 11,346.45

24. Deposits (at amortised cost)

Inter Corporate Deposit - from others 96.01 2,168.97
Total 96.01 2,168.97
25. Subordinated liabilities (at amortised cost)

Unsecured 31-Mar-21 31-Mar-20
Non-convertible subordinated debt 13,925.28 18,816.11
Perpetual debt 1,151.00 1,162.64
Preference share capital 11.47 3,630.06
Total 15,087.75 23,608.81
Subordinated liabilities in india 15,087.75 23,608.81

Subordinated liabilities outside india - -
Total 15,087.75 23,608.81
Terms and condition related to subordinate liabilities:
Subordinated Liabilities – 31 March 2021

Rate of Interest
9.00 - 9.99% - - 2,760.00 2,760.00
10.00 - 10.99% - - 3,370.23 3,370.23
11.00 - 11.99% - 500.00 3,648.00 4,148.00
14.00 - 14.99% - 11.47 - 11.47
Various (benchmark linked) - 2,685.80 600.00 3,285.80
Total - 3,197.27 10,378.23 15,087.75
Subordinated Liabilities – 31 March 2020

Rate of Interest
9.00 - 9.99% - 2,944.05 3,319.65 6,263.70
10.00 - 10.99% - - 3,420.73 3,420.73
11.00 - 11.99% 4,655.06 500.00 3,648.00 8,803.06
14.00 - 14.99% - 300.68 310.38 611.06
Various (benchmark linked) - - 2,826.80 2,826.80
Total 4,655.06 3,744.73 13,525.56 23,608.81

26. Other financial liabilities (at amortised cost unless otherwise specified)
Payable to client (net)1 785.20 17,823.52
Payable to exchange / clearing house (net) 42.13 1,292.54
Book overdraft 542.18 44.56
Accrued salaries and benefits 3,575.91 487.35
Provision for short sale at fair value 529.70 1,372.17
Payable to contractors - 356.59
Reinsurance payable 220.78 133.06
Deposits from sub-brokers - 112.18
Rental deposits 75.74 24.02
Retention money payable 15.92 60.71
Unclaimed dividends 8.19 13.00
Security receipts held by outsiders 7,348.17 5,420.15
Derivative liability 2,239.47 2,036.58
Lease liability payable 800.22 2,398.43
Payable on account of securitisation 9,913.20 7,881.56
Financial liability associated to financial assets that are not derecognised 11,084.53 8,446.13
Other liabilities 4,275.83 1,347.99
Total 41,457.17 49,250.54
1
includes deployed in the form of bank balances and fixed deposits.
27. Provisions
Provision for employee benefits and related costs
Gratuity 176.71 167.66
Compensated absences 67.66 124.31
Others (including interim dividend) 874.18 59.14
Total 1,118.55 351.11
28. Other non-financial liabilities

Income received in advance 1,434.41 1,416.43
Statutory dues 1,102.86 1,255.15
Advances from customers 35.64 1,026.04
Proposal deposit from insurance business 273.22 172.25
Others 303.22 340.08
Total 3,149.35 4,209.95

29. Equity share capital

As at 31-Mar-2021 As at 31-Mar-2020
Particulars
No of shares Amount No of shares Amount
Authorised :
Equity Shares of ` 1 each 1,23,00,00,000 1,230.00 1,23,00,00,000 1,230.00
Preference shares of ` 5 each 40,00,000 20.00 40,00,000 20.00
1,23,40,00,000 1,250.00 1,23,40,00,000 1,250.00
Issued, Subscribed and Paid up:
Equity Shares of ` 1 each 93,57,98,077 935.80 93,44,09,002 934.41
Less: Shares held by Edelweiss Employees Incentives (73,01,510) (7.30) (73,01,510) (7.30)
and Welfare Trust (Refer note 1)
Less: Shares held by Edelweiss Employees Welfare (3,75,95,270) (37.60) (3,75,95,270) (37.60)
Trust (Refer note 1)
89,09,01,297 890.90 88,95,12,222 889.51
A. Reconciliation of number of shares

(Before deducting treasury shares)
Particulars
Outstanding at the beginning of the year 93,44,09,002 934.41 93,26,69,564 932.67
Shares issued during the year:
-Under Employee Stock Options Plans (ESOPs) 13,89,075 1.39 17,39,438 1.74
Outstanding at the end of the year 93,57,98,077 935.80 93,44,09,002 934.41
Note :
1. Edelweiss Employees Welfare Trust and Edelweiss Employees Incentive and Welfare Trust are extension of Edelweiss
Financial Services Limited standalone financial statements and have been accordingly carried forward in consolidated
financial statements., these trusts are holding 44,896,780 number of equity shares amounting to ₹ 44.90 million (Previous
year ₹ 44.90 million). These are deducted from total outstanding equity shares.
2. The above two Employee Welfare Trust(s) hold an aggregate 44,896,780 equity shares of the Company for incentive and
welfare benefits for group employees as per extant applicable SEBI regulations. Pursuant to the exercise of right available
under Regulation 29 of SEBI (Share Based Employee Benefits) Regulations, 2014, the Company has applied before the
expiry date of 27 October 2019 for extension of the time limit for disposing of aforesaid equity shares. The said application
is under consideration and approval for extension from SEBI is awaited as at date.
B. Terms/rights attached to equity shares :
The Company has only one class of equity shares having a par value of ₹ 1 per share. Each holder of equity shares is entitled
to one vote per share.
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the
Company, after distribution of all preferential amounts, if any, in proportion to the number of equity shares held by the
shareholders.

29. Equity share capital (Continued)

C. Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
Particulars
No of shares % holding No of shares % holding
Rashesh Shah 14,56,01,730 15.56% 14,53,01,730 15.55%
Venkatchalam Ramaswamy 5,81,26,560 6.21% 5,80,26,560 6.21%
Bih Sa 4,82,57,748 5.16% 4,70,07,748 5.03%
25,19,86,038 26.93% 25,03,36,038 26.79%
Note :
The Shareholding of Mr. Rashesh Chandrakant Shah and Mr. Venkatchalam A Ramaswamy in the Promoter and Promoter Group
category does not include 300,000 equity shares and 100,000 equity shares purchased by them respectively on 31 March 2020,
as the shares were credited to the respective demat accounts post 31 March 2020, as per the settlement cycle.
30. Other equity

Share application money pending allotment 1.70 0.19
Capital reserve 8,456.79 8,258.73
Capital redemption reserve 187.87 273.62
Securities premium account 29,134.23 29,062.49
ESOP/SAR reserve 1,128.28 818.18
Special reserve under section 45-IC of the Reserve Bank of India Act, 1934 6,757.98 7,647.60
Reserve under section 29C of the National Housing Bank Act, 1987 547.80 540.34
General reserve 717.15 826.56
Debenture redemption reserve 6,765.61 8721.51
Impairment reserve 1,829.25 1,577.37
Retained earnings 6,067.68 (1,554.30)
Foreign exchange translation reserve (17.52) 390.17
Revaluation reserve through other comprehensive income 4,571.09 5,080.88
Equity instruments through other comprehensive income (1,700.00) (1,700.00)
Debt instruments through other comprehensive income 432.78 454.26
64,880.69 60,397.60
30.1 Capital reserve

Capital reserve represents the gains of capital nature which is not freely available for distribution.
30.2 Capital redemption reserve

The Group has recognised capital redemption reserve on buy back of equity share capital.
30.3 Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
30.4 Statutory reserve u/s 45-IC of The Reserve Bank of India Act, 1934
Every non-banking financial company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its
net profit every year as disclosed in the profit and loss account and before any dividend is declared.

30. Other equity (Continued)
30.5 Statutory reserve u/s 29C of The National Housing Bank Act, 1987
In terms of Section 29C of the National Housing Bank Act, 1987 every housing finance institution which is a company is required
to create a reserve fund and transfer therein a sum not less than twenty percent of its net profit every year as disclosed in the
profit and loss account before any dividend is declared. Housing Finance Companies (HFCs), are permitted to withdraw from
the said reserve fund, the excess amount credited (in excess of the statutory minimum of 20%) in the previous years for any
business purposes subject to suitable disclosure in the balance sheet and in the case of HFCs which have transferred only the
statutory minimum in the previous years to selectively permit them to withdraw from the reserve fund only for the purpose of
provisioning for non-performing assets subject to the conditions that there is no debit balance in the profit and loss account
and that the reason for such withdrawal are stated explicitly in the balance sheet.
30.6 General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. 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.
30.7 Debenture redemption reserve

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 retained earnings.
30.8 Impairment reserve

RBI notification on Implementation of Indian Accounting Standards, dated 13 March 2020 requires NBFC/ARC subsidiaries within
Group are to recognised impairment reserves where impairment allowance under Ind AS 109 is lower than the provisioning
required under IRACP (including standard asset provisioning)
30.9 Retained earnings

Retained earnings comprises of the Company's undistributed earnings after taxes.
30.10 Foreign exchange translation reserve

The exchange differences arising out of year end translation of Group entities having functional currency other than Indian
Rupees is debited or credited to this reserve.
30.11 Revaluation Reserve through other comprehensive income

Group has decided to change to revaluation model from cost model of accounting for a class of asset (i.e. flats and building)
as at 31st March 2020. Similarly, group entities have also changed their existing model for Flats and building to align with the
Group policy.
30.12 FVOCI equity investments

The Group has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive
income. These changes are accumulated within the FVOCI equity investments within equity. The Group transfers amounts from
this reserve to retained earnings when the relevant equity securities are derecognised

30. Other equity (Continued)
30.13 FVOCI debt investments

The Group recognises changes in the fair value of debt instruments held with business objective of collect and sell in other
comprehensive income. These changes are accumulated within the FVOCI debt investments within equity. The Group transfers
amounts from this reserve to the statement of profit and loss when the debt instrument is sold.
31. Interest income

For the year ended 31 March 2021
Particulars Amortised cost FVTPL FVOCI Total
Interest on loans 34,478.42 - - 34,478.42
Interest income from investments 66.57 1,442.70 1,098.09 2,607.36
Interest on deposits with Banks 2,719.33 - - 2,719.33
Other interest income 538.90 - - 538.90
Total 37,803.22 1,442.70 1,098.09 40,344.01
For the year ended 31 March 2020

Particulars Amortised cost FVTPL FVOCI Total
Interest on loans 50,630.22 - - 50,630.22
Interest income from investments 415.81 2,656.41 1,387.04 4,459.26
Interest on deposits with Banks 2,933.69 - - 2,933.69
Other interest income 996.29 - - 996.29
Total 54,976.01 2,656.41 1,387.04 59,019.46
32. Fee and commission income

Income from broking 3,760.65 3,657.09
Advisory and other fees 12,780.74 17,335.89
Total 16,541.39 20,992.98
Below is the disaggregation of the revenue from contracts with customers and its reconciliation to amounts reported in
statement of profit and loss:
Service transferred at a point in time 6,335.85 7,798.21
Service transferred over time 10,205.54 13,194.77
Total revenue from contract with customers 16,541.39 20,992.98
33. Net gain on fair value changes

Net gain /(loss) on financial instruments at fair value through profit or loss
On trading portfolio
Investment at FVTPL 7,915.59 (3,464.41)
Derivatives at FVTPL 5,637.64 1,375.09
Others
Other financial instruments 8,655.75 4,038.90
Total Net gain/(loss) on fair value changes 22,208.98 1,949.58
Fair Value changes:

Realised gain/(loss) 9,399.36 11,849.68
Unrealised gain/(loss) 12,809.62 (9,900.10)
Total 22,208.98 1,949.58

34. Other operating revenue

Warehousing income 411.42 712.35
Delayed payment charges 81.11 191.99
Income from training centre 12.02 39.49
Rental income 32.59 37.70
Total 537.14 981.53
35. Other income

Donation income 299.61 243.41
Interest on income tax refund 184.37 304.73
Profit on sale of subsidiaries (net) (Refer Note 67) 13,992.27 -
Miscellaneous income 438.65 345.01
Total 14,914.90 893.15
36. Finance cost (at amortised cost unless otherwise stated)

Interest on deposits 51.55 49.51
Interest on borrowings (other than debt securities) 11,660.20 18,458.16
Interest on debt securities 23,120.49 23,487.45
Interest on debt securities (at fair value through profit or loss) 509.43 2,717.00
Interest on subordinated liabilities 1,963.28 1,863.72
Other interest expense 1,035.38 1,354.55
Total 38,340.33 47,930.39
37. Employee benefits expense

Salaries and wages 15,166.62 12,670.31
Contribution to provident and other funds 619.73 703.04
Expense on employee stock option scheme/stock appreciation rights 333.75 390.79
Staff welfare expenses 39.02 308.87
Total 16,159.12 14,073.01
38. Impairment on financial instruments

On loans 11,782.86 26,375.73
On investments 980.14 417.56
On trade receivables (153.84) 109.36
Total 12,609.16 26,902.65

39. Other expenses

Advertisement and business promotion 1,506.55 1,282.49
Auditors' remuneration (Refer note 39(a)) 107.58 95.82
Commission and brokerage 1,437.39 1,229.06
Communication 401.89 490.91
Computer software and other expenses 1,142.71 815.47
Commission to non-executive directors 16.00 3.50
Contribution towards corporate social responsibility 477.93 484.28
Dematerialisation charges and stock exchange expenses 159.71 85.78
Directors' sitting fees 12.68 13.38
Insurance 64.24 76.70
Legal and professional fees 3,160.25 1,552.11
Membership and subscription 173.42 172.90
Mutual fund expenses 118.17 123.59
Office expenses 392.18 950.17
Printing and stationery 71.82 123.86
Rates and taxes 1,372.53 1,254.87
Rent and electricity charges 330.61 426.20
Repairs and maintenance - others 72.92 133.35
Security transaction tax 459.68 305.74
Seminar and conference expenses 22.74 193.29
Stamp duty 215.07 234.95
Travelling and conveyance 255.82 823.91
Warehousing charges 193.44 466.50
Selling and distribution expenses 515.15 952.55
Miscellaneous expenses 504.07 350.50
Loss on sale/ write-off of fixed assets (net) 221.61 -
Total 13,406.16 12,641.88
39. (a) Auditors' remuneration

As Auditors 106.53 91.46
Towards reimbursement of expenses 1.05 4.36
Total 107.58 95.82

40. Income tax

The components of income tax expense recognised in profit or loss for the years ended 31 March 2021 and 31 March 2020 are:
Current tax 1,553.13 3,243.47
Adjustment in respect of current income tax of prior years (1,313.24) (272.72)
Deferred tax relating to origination and reversal of temporary differences (2,301.74) (6,796.28)
Deferred tax relating to unused tax losses and unused tax credits (including write-downs) 978.89 (303.27)
(net)
Total tax expense (1,082.96) (4,128.80)
Total current tax 239.89 2,970.75
Total deferred tax (1,322.85) (7,099.55)
Pursuant to the introduction of Section 115BAA of the Income Tax Act, 1961, in FY 2020-21, 5 (Previous year - 15) subsidiaries
Companies in the Group have opted for the reduced tax rate of 25.17% under the said Section. Accordingly these entities have
recognised provision for income tax for the year ended March 31, 2021 and March 31, 2020 and have also re-measured their
deferred tax asset/ liabilities (net) and derecognised MAT credit (wherever applicable) resulting in tax charge of ` 449.99 million
(Previous year ` 43.76 million)
40.1. Reconciliation of the total tax expense

The tax expense shown in the statement of profit and loss differs from the tax expense that would apply if all profits had been
charged at India corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India's
domestic tax rate for the years ended 31 March 2021 and 31 March 2020 is, as follows:

Profit / (Loss) before tax 1,462.59 (24,566.52)
Tax rate 25.17% 34.94%
Income tax expense calculated based on above tax rate 3 68.13 (8,584.52)
Adjustment in respect of income tax of prior years (1,313.65) (272.72)
Effect of income not subject to tax (8,113.46) (163.20)
Effect of non-deductible expenses 848.92 1,425.31
Impact of certain items being taxed at different rates (26.09) (43.76)
Impact of tax rate changes between two accounting periods 263.26 (68.23)
Write-down / reversal of write down of deferred tax assets on unused tax credits and (194.24) 873.05
unused tax losses (net)
Effect of non-recognition of deferred tax asset on current-period losses 7,570.43 1,344.28
Different tax rates of subsidiaries (1,206.36) 1,375.56
Others 720.10 (14.57)
Tax expense recognised in profit or loss (1,082.96) (4,128.80)

41. Components of deferred tax

The following table shows deferred tax recorded in the Balance sheet and changes recorded in the income tax expense:
Opening Recognised Recognised Recognised Others Total Closing
deferred in profit or in other directly in Movement deferred
31-Mar-21
tax asset/ loss comprehensive equity tax asset/
(liability) income (liability)

Provision for expected credit losses 3,730.83 (1,515.68) - - - (1,515.68) 2,215.15
Unused tax losses / credits 5,497.06 3,318.84 - - (741.57) 2,577.27 8,074.33
Employee benefits obligations 95.50 43.13 (10.48) - (26.75) 5.90 101.40
ESOP Perquisite 4.01 - - - - 0 4.01
Fair valuation of Financial Assets 19.08 773.73 (0.20) - (131.64) 641.89 660.97
Fair valuation of Derivatives 782.22 (797.75) - - - (797.75) (15.53)
Property, Plant and Equipment and (2,585.05) 6.94 46.60 (24.39) 169.87 199.02 (2,386.03)
Intangible assets
EIR adjustment on borrowings (622.63) (505.60) - - - (505.60) (1,128.23)
Special Reserve u/s 36(1)(viii) - (0.76) - (97.94) - (98.70) (98.70)
Total 6,921.02 1,322.85 35.92 (122.33) (730.09) 506.35 7,427.37
Opening Recognised in Recognised Recognised Others Total Closing

deferred profit or loss in other directly in Movement deferred
31-Mar-20
tax asset/ comprehensive equity tax asset/
(liability) income (liability)
Provision for expected credit losses 2,885.07 878.63 - - (32.87) 845.76 3,730.83
Unused tax losses / credits 2,528.16 3,027.39 - - (58.49) 2,968.90 5,497.06
Employee benefits obligations 91.81 0.65 3.02 - 0.02 3.69 95.50
ESOP Perquisite 4.80 (0.79) - - - (0.79) 4.01
Fair valuation of Financial Assets (2,463.96) 2,421.58 (0.10) 61.52 0.04 2,483.04 19.08
Fair valuation of Derivatives (19.32) 801.54 - - - 801.54 782.22
Property, Plant and Equipment and (67.09) 6.88 (2,534.83) 9.62 0.37 (2,517.96) (2,585.05)
Intangible assets
EIR adjustment on borrowings (586.30) (36.33) - - - (36.33) (622.63)
Total 2,373.17 7,099.55 (2,531.91) 71.14 (90.93) 4,547.85 6,921.02
1. Recognition of deferred taxes are evaluated by Board in respective board meetings of Group companies.
2. Deferred tax liabilities on undistributed profit:
The Group has not created deferred tax liability on the undistributed earnings in the subsidiary companies in the consolidated financial
statements considering its ability to control the timing of the reversal of temporary differences associated with such undistributed earnings
and its probable that such difference will not reverse in the foreseeable future.
41.1. Deductible temporary differences, unused tax losses and unused tax credits on which deferred tax asset is not recognised in balance sheet
As at 31-Mar-2021
Financial Year Deductible temporary Unused tax losses Unused tax credits
to which the differences
loss related to Amount Expiry year- Unabsorbed depreciation Unabsorbed long term Unabsorbed business Total Mat Credit
financial year capital losses losses
Amount Expiry year- Amount Expiry year- Amount Expiry year- Amount Amount Expiry year-
financial year financial year financial year financial year
FY 2020-21 4,487.92 Not applicable 64.49 No expiry 3,821.98 FY 2028-29 17,088.74 FY 2028-29 20,975.21 - -
FY 2020-21 - - - - - - 21.73 FY 2025-26 21.73 - -
FY 2019-20 1,773.80 Not applicable 37.45 No expiry - - 8,506.08 FY 2027-28 8,543.53 - -
FY 2019-20 - - - - - - 10.08 FY 2024-25 10.08 - -
FY 2018-19 55.32 Not applicable 52.85 No expiry - - 3,405.07 FY 2026-27 3,457.92 - -
FY 2018-19 - - - - - - 13.68 FY 2023-24 13.68 - -
FY 2018-19 - - - - - - 387.50 No expiry 387.50 - -
FY 2017-18 - - - - - - 667.80 No expiry 667.80 - -
FY 2016-17 - - 1.66 No expiry - - 2,388.56 FY 2024-25 2,390.22 - -
FY 2016-17 - - - - - - 73.44 FY 2021-22 73.44 - -
FY 2015-16 - - 0.87 No expiry - - 1,686.29 FY 2023-24 1,687.16 - -
FY 2014-15 - - - - - - 604.13 FY 2022-23 604.13 - -
FY 2013-14 - - - - - - 650.59 FY 2021-22 650.59 - -
Total 6,401.60 177.33 3,821.98 38,426.12 42,425.43 -

41.1. Deductible temporary differences, unused tax losses and unused tax credits on which deferred tax asset is not recognised in balance sheet (Continued)
As at 31-Mar-2020
Financial Year Deductible temporary Unused tax losses Unused tax credits
to which the differences
loss related to Amount Expiry year- Unabsorbed depreciation Unabsorbed long term Unabsorbed business Total Mat Credit
financial year capital losses losses

Amount Expiry year- Amount Expiry year- Amount Expiry year- Amount Amount Expiry year-
financial year financial year financial year financial year
FY 2019-20 1,773.80 Not applicable 203.57 No expiry - - 5,277.76 FY 2027-28 5,481.33 - -
FY 2019-20 - - - - - - 10.08 FY 2024-25 10.08 - -
FY 2018-19 55.32 Not applicable 52.57 No expiry 204.97 FY 2026-27 3,316.05 FY 2026-27 3,573.59 - -
FY 2018-19 - - - - - - 366.31 No Expiry 366.31 - -
FY 2018-19 - - - - - - 13.68 FY 2023-24 13.68 - -
FY 2017-18 - - - - - - 731.26 No Expiry 731.26 - -
FY 2016-17 - - 4.73 No expiry - - 2,443.31 FY 2024-25 2,448.04 - -
FY 2016-17 - - - - - - 205.19 FY 2021-22 205.19 - -
FY 2016-17 - - - - - - 198.81 No Expiry 198.81 - -
FY 2015-16 - - 5.15 No expiry - - 1,807.30 FY 2023-24 1,812.45 - -
FY 2015-16 - - - - - - 218.92 FY 2020-21 218.92 - -
FY 2014-15 - - 1.79 No expiry - - 604.13 FY 2022-23 605.92 - -
FY 2013-14 - - - - - - 650.59 FY 2021-22 650.59 - -
FY 2012-13 - - - - - - 649.87 FY 2020-21 649.87 - -
Total 1,913.68 287.82 204.97 19,251.27 19,744.06 -

42. Earnings per share (EPS)
In accordance with Indian Accounting Standard 33 – “Earnings Per Share” prescribed by Companies (Accounts) Rules, 2015,
the computation of earnings per share is set out below:

Profit /(loss) for the year attributable to owners of the parent 2,653.36 (20,452.45)
Weighted average number of equity shares for calculating basic EPS 88,99,51,721 88,87,13,129
Number of dilutive potential equity shares 37,99,386 55,75,693
Weighted average number of equity shares for calculating diluted EPS 89,37,51,107 89,42,88,822
Earnings per share (EPS) (Face value ` 1 each)
Basic earnings share (in `) 2.98 (23.01)
Dilutive earning per share (in `)* 2.97 (23.01)
*For Financial year 2019-20 Impact of potential equity shares are anti-dilutive, hence restricted to Basic earning per share.
43. Segment information

The Group has made its consolidated segment reporting to meaningfully represent its business lines Agency, Capital business,
Asset reconstruction business, Insurance & Treasury business. Agency includes broking, advisory, product distribution and
other fee based businesses; Capital Based represents lending business; Asset reconstruction business represents purchase and
resolution of distress assets; Insurance business represents life insurance business and general insurance business. Treasury
business represents income from trading and investment activities.
Since the business operations of the Group are primarily concentrated in India, the Group is considered to operate only in the
domestic segment.
Segment information Particulars Year Ended

31-Mar-21 31-Mar-20
1 Segment revenue (Total income)2
Agency 13,365.90 11,268.50
Capital based 48,048.30 44,652.00
Insurance business 20,709.50 12,462.50
Asset reconstruction business 17,063.70 18,207.10
Treasury 8,807.90 8,839.70
Unallocated 486.85 596.49
Total income 1,08,482.15 96,026.29
2 Segment results (Profit/(loss) before tax)
Agency 1,721.50 2,560.00
Capital based (3,490.10) (27,901.00)
Insurance business (2,977.70) (3,670.10)
Treasury 4,156.70 1,161.60
Unallocated (204.26) (66.32)
Total profit/(loss) before tax 1,456.24 (24,566.52)

43. Segment information (Continued)
Segment information Particulars As at

31-Mar-21 31-Mar-20
3 Segment assets
Agency 7,326.60 45,287.70
Capital based 2,90,082.00 3,39,434.90
Treasury 27,238.50 32,773.60
Unallocated 17,948.73 15,404.21
Total assets 4,59,750.13 5,42,803.21
4 Segment liabilities
Agency 3,277.20 38,883.00
Capital based 2,68,802.00 3,28,181.60
Treasury 18,916.00 18,592.20
Unallocated 2,530.38 3,357.64
Total liabilities 3,82,980.18 4,70,732.44
1. Non-cash expenditure aggregated to ` 30,370.25 million for the year ended 31 March 2021 (Previous Year ` 42,295.45
million)
2. Segment revenue includes share in profit/(loss) in associates.
44. Transfer of Financials Asset

The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the
transferred financial assets do not qualify for derecognition, together with the associated liabilities

Securitisations
Carrying amount of transferred assets measured at amortised cost (Held as collateral ) 9,136.85 7,701.95
Carrying amount of associated liabilities (Debt securities - measured at amortised cost) 8,495.41 7,426.86
Fair value of assets 8,972.13 7,918.57

Fair value of associated liabilities 8,509.85 7,566.82
Net position at fair value 462.28 351.75

45. Unconsolidated structured entities

The Group has exposure to certain unconsolidated structured entities being securitisation trusts, alternative investment funds
and similar funds. The Group is involved in setting up of these structured entities and generally, acts as the investment manager.
However, the Group can be removed by certain specified majority of the investors. Further, the Group does not have significant
exposure to variability of returns and its remuneration is commensurate to the services provided. Therefore, these structured
entities are not consolidated by the Group.
The following tables show the carrying amount of the Group’s recorded interest in its consolidated balance sheet as well as the
maximum exposure to risk (as defined in below) due to these exposures in the unconsolidated structured entities:
31-Mar-21
Securitisation Alternative Total Maximum
Particulars
trusts Investment exposure1
Funds
Loans 923.29 - 923.29 923.29
Trade Receivables 4,386.02 96.46 4,482.48 4,482.48
Investments at fair value through profit or loss 47,730.65 4,386.46 52,117.11 52,117.11
Total Assets 53,039.96 4,482.92 57,522.88 57,522.88
Off-balance sheet exposure - 2,379.10 2,379.10 2,379.10
Size of the structured entity1 4,06,080.17 3,52,502.15 7,58,582.32 -
Income from the structured entity 5,939.40 1,932.18 7,871.58 -
31-Mar-20
Securitisation Alternative Total Maximum
Particulars
trusts Investment exposure1
Funds
Loans 895.61 - 895.61 895.61
Trade Receivables 5,404.33 344.61 5,748.94 5,748.94
Investments at fair value through profit or loss 40,098.56 856.68 40,955.24 40,955.24
Total Assets 46,398.50 1,201.29 47,599.79 47,599.79
Off-balance sheet exposure - 3,163.97 3,163.97 3,163.97
Size of the structured entity1 4,10,401.57 2,50,903.97 6,61,305.54 -
Income from the structured entity 9,686.31 1,520.82 11,207.13 -
1
In the above table, the size of the structured entity refers to the corpus in case of securitisation trusts and to the assets under
management in case of alternative investment funds. For loans, trade receivables and investments in structured entities, the
carrying value reflects the Group's maximum exposure to loss.

46. Disclosure of interest in other entities:
1. Details of non wholly subsidiaries that have material non-controlling interests.
Place of Proportion Profit(loss) allocated to non-

incorporation of ownership controlling interests
Name of subsidiary and principal interests held by 31-Mar-21 31-Mar-20
place of non-controlling
business interests
Edelweiss Asset Reconstruction Company Limited India 40.16% 745.50 1,211.01
Edelweiss Tokio life insurance Company Limited India 49.00% (1,013.02) (1,337.76)
Summarised financial information in respect of each of the Group's subsidiaries that have material non-controlling interests
is set out below. The summarised financial information below represents amounts before intra-group eliminations.
As at As at
Edelweiss Asset Reconstruction Company Limited
31-Mar-2021 31-Mar-2020
Financial assets 58,950.25 65,178.66
Non-financial assets 377.45 285.99
Financial liabilities 36,285.22 43,920.19
Non-financial liabilities 822.62 1,180.39
Equity attributable to owners of the company 15,516.48 14,222.26
Non-controlling interest 6,703.38 6,141.80

Particulars
31 March 2021 31 March 2020
Revenue from operations 8,673.60 11,653.16
Total income 8,673.82 11,660.45
Total expenses 6,221.57 8,174.38
Profit / (loss) before tax 2,452.25 3,486.07
Tax expense 595.93 470.61
Profit / (loss) for the year 1,856.32 3,015.46
Total comprehensive income / (loss) 1,855.79 3,014.74
Profit / (loss) for the year attributable to owners of the parent 1,110.82 1,804.45
Profit / (loss) for the year attributable non-controlling interests 745.50 1,211.01
Cash flows (used) / generated from operating activities 7,971.82 8,411.13

Cash flows (used) / generated from investing activities 3,272.35 8,656.56
Cash flows (used) / generated from financial activities (13,034.00) (10,975.85)
Net cash inflow/(outflow) (1,789.83) 6,091.84

46. Disclosure of interest in other entities: (Continued)

As at As at
31-Mar-2021 31-Mar-2020
Financial assets 47,243.94 35,366.05
Non-financial assets 4,967.63 5,079.39
Financial liabilities 3,842.89 3,162.42
Non-financial liabilities 43,008.23 29,794.61
Equity attributable to owners of the company 2,733.83 3,819.09
Non-controlling interest 2,626.62 3,669.32

Particulars
31 March 2021 31 March 2020
Revenue from operations 18,635.59 11,865.28
Total income 18,663.14 11,881.84
Total expenses 20,730.52 14,611.96
Profit / (loss) before tax (2,067.38) (2,730.12)
Tax expense - -
Profit / (loss) for the year (2,067.38) (2,730.12)
Total comprehensive income / (loss) (2,127.95) (1,737.31)
Profit / (loss) for the year attributable to owners of the parent (1,054.36) (1,392.36)
Profit / (loss) for the year attributable non-controlling interests (1,013.02) (1,337.76)
Cash flows (used) / generated from operating activities 4,871.00 2,195.00

Cash flows (used) / generated from investing activities (4,944.00) (1,921.00)
Cash flows (used) / generated from financial activities (116.00) (122.00)
Net cash inflow/(outflow) (189.00) 152.00
2. Details of associate
As at
Edelweiss Securities Limited (w.e.f. 27 March 2021) - Refer Note 67
31-Mar-2021
Financial assets 70,180.71
Non-financial assets 2,672.95
Financial liabilities 56,149.71
Non-financial liabilities 1,076.60
Total equity 15,627.35
For the year ended

Particulars
31 March 2021
Revenue from operations 12,901.13
Total income 12,984.06
Total expenses 11,315.77
Profit / (loss) before tax 1,668.29
Other exceptional items (5,912.77)
Profit / (loss) before tax and after exceptional items (4,244.48)
Tax expense 583.56
Profit / (loss) for the year (4,828.04)
Total comprehensive income / (loss) (4,679.03)
Share in profit / (loss) of associates (6.35)

Share in profit / (loss) of associates in other comprehensive income 1.85
Cash flows (used) / generated from operating activities (9,896.95)

Cash flows (used) / generated from investing activities (931.95)
Cash flows (used) / generated from financial activities 7,335.92
Net cash inflow/(outflow) (3,492.98)

47. Retirement benefit plan

A) Defined contribution plan (Provident fund and National Pension Scheme):
Amount of ` 474.00 million (Previous year: ` 572.45 million) is recognised as expenses and included in "Employee benefit
expense" in the statement of profit and loss
B) Defined benefit plan (Gratuity):

The following tables summarise the components of the net benefit expenses recognised in the statement of profit and
loss and the funded and unfunded status and amount recognised in the balance sheet for the gratuity benefit plan.
Statement of profit and loss
Expenses recognised in the Statement of Profit and Loss:

Current service cost 124.82 125.54
Interest on defined benefit obligation 10.09 10.36
Past service cost 2.28 2.40
Effect of Curtailment - (8.06)
Exchange rate adjustment (0.06) 0.17
Total included in 'Employee benefits expense' 137.13 130.41
Movement in Other Comprehensive Income:

Balance at start of year (Loss)/ Gain
Re-measurements on define benefit obligation (DBO) (74.75) (26.58)
a. Actuarial (Loss)/ Gain from changes in financial assumptions (14.80) (46.80)
b. Actuarial (Loss)/ Gain from experience over the past year (6.74) 34.66
Return on plan assets excluding amount included in net interest on the net defined
90.00 (31.32)
benefit liability/ (asset)
Effect of acquisition/ (divestiture) 9.93 -
Changes in the effect of limiting a net defined benefit asset to the asset ceiling
(35.12) (4.71)
excluding amount included in net interest on the net defined benefit liability/ (asset)
Balance at end of year (Loss)/ Gain (31.48) (74.75)
Balance sheet
Reconciliation of defined benefit obligation (DBO) :
Present value of DBO at the beginning of the year 729.60 625.53
Acquisition/ (Divestiture) (337.04) (8.06)
Interest cost 41.85 42.92
Current service cost 124.82 125.54
Benefits paid (94.32) (71.04)
Past service cost 2.28 2.40
Actuarial (gain)/loss 21.54 12.14
Exchange Rate Adjustment (0.06) 0.17
Present value of DBO at the end of the year 488.67 729.60

47. Retirement benefit plan (Continued)

B) Defined benefit plan (Gratuity): (Continued)
Reconciliation of fair value of plan assets:

Fair value of plan assets at the beginning of the year 573.50 506.53
Contributions by Employer 93.49 136.34
Benefits paid (94.32) (71.04)
Interest income 32.42 32.99
Acquisition/ (Divestiture)/Curtailment (260.31) -
Return on plan asset excluding amount included in net interest on the net defined 90.00 (31.32)
benefit liability/ (asset)
Fair value of plan assets at the end of the year 434.78 573.50
Net asset / (liability) recognised in the balance sheet:

Particulars 2021 2020 2019 2018 2017
Present value of DBO (488.67) (729.60) (625.53) (487.60) (380.66)
Fair value of plan assets at the end of the year 434.78 573.50 506.53 348.42 290.19
Net Liability (53.89) (156.10) (119.00) (139.18) (90.47)
Less: Effect of limiting net assets to asset ceiling (47.36) (11.56) (6.45) (5.96) (1.40)
Liability recognised in the balance sheet (101.25) (167.66) (125.45) (145.14) (91.87)
Experience adjustments:
Particulars 2021 2020 2019 2018 2017
On plan liabilities: loss / (gain) 6.74 (34.66) 18.12 (13.07) (11.37)
On plan assets: gain / (loss) 15.53
Estimated contribution for next year 1.00
Principal actuarial assumptions at the balance sheet date:

2020-21 2019-20
Discount rate 5% 5.50%-5.90%
Salary escalation 7% 7.00%
Employees attrition rate 25% 13% - 60%
Mortality Rate IALM 2012-14 (Ultimate) IALM 2012-14 (Ultimate)
Percentage Break-down of Total Plan Assets 2020-21 2019-20

Investment Funds with Insurance Company and Cash 98% 100%
Cash and cash equivalents 2% 0%
Total 100% 100%
Sensitivity Analysis for 2021:

Assumptions Discount rate Future salary increases
Sensitivity Level 1.00% 1.00% 1.00% 1.00%
increase decrease increase decrease
Impact on defined benefit obligation (29.55) 31.78 30.84 (29.26)
Sensitivity Analysis for 2020:

Assumptions Discount rate Future salary increases
Sensitivity Level 1.00% 1.00% 1.00% 1.00%
increase decrease increase decrease
Impact on defined benefit obligation (34.39) 37.38 36.57 (34.31)

48. Maturity analysis of assets and liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or
settled. With regard to loans and advances to customers, the Group uses the same basis of expected repayment behaviour as
used for estimating the EIR. Issued debt reflect the contractual coupon amortisations.
As at 31 March 2021 As at 31 March 2020

Particulars Within After Total Within After Total
12 months 12 months 12 months 12 months
ASSETS
Financial assets
(a) Cash and cash equivalents 38,985.15 - 38,985.15 49,425.19 - 49,425.19
(b) Bank balances other than cash 5,659.64 2,957.27 8,616.91 32,910.90 3,759.99 36,670.89
and cash equivalents
(c) Derivative financial instruments 2,902.03 - 2,902.03 5,223.80 98.07 5,321.87
(d) Stock in trade (securities held for 15,727.80 18.96 15,746.76 17,458.07 - 17,458.07
trading)
(e) Trade Receivables 3,679.35 1,381.14 5,060.49 9,886.37 3,166.01 13,052.38
(f) Loans 55,199.99 1,63,905.47 2,19,105.46 79,525.99 2,04,080.80 2,83,606.79
(g) Investments 34,977.31 79,785.71 1,14,763.02 12,029.33 70,636.69 82,666.02
(h) Other financial assets 11,423.86 1,204.21 12,628.07 7,082.78 1,219.55 8,302.33
Total financial assets (A) 1,68,555.13 2,49,252.76 4,17,807.89 2,13,542.43 2,82,961.11 4,96,503.54
(a) Inventories - - - 436.09 - 436.09
(b) Reinsurance assets - 3,393.36 3,393.36 - 2,944.42 2,944.42
(c) Current tax assets (net) 1,221.48 5,996.66 7,218.14 870.13 4,969.65 5,839.78
(d) Deferred tax assets (net) 7.46 9,577.53 9,584.99 - 9,564.75 9,564.75
(e) Investment property - 3,394.63 3,394.63 - 4,457.27 4,457.27
(f) Property, Plant and Equipment 0.09 12,281.18 12,281.27 128.98 14,883.60 15,012.58
(g) Capital work in progress 7.93 - 7.93 - 111.56 111.56
(h) Intangible assets under 1.32 122.85 124.17 - 320.79 320.79
development
(i) Goodwill - 663.35 663.35 - 1,723.41 1,723.41
(j) Other Intangible assets - 1,467.74 1,467.74 - 2,255.79 2,255.79
(k) Other non- financial assets 1,719.00 2,087.66 3,806.66 1,559.52 2,073.71 3,633.23
Total non-financial assets (B) 2,957.28 38,984.96 41,942.24 2,994.72 43,304.95 46,299.67
TOTAL ASSETS (C = A+B) 1,71,512.41 2,88,237.72 4,59,750.13 2,16,537.15 3,26,266.06 5,42,803.21

48. Maturity analysis of assets and liabilities (Continued)

As at 31 March 2021 As at 31 March 2020
Particulars Within 12 After 12 Total Within 12 After 12 Total
months months months months
LIABILITIES
(a) Derivative financial instruments 1,620.56 224.95 1,845.51 3,786.06 26.42 3,812.48
(b) Trade Payables 4,605.05 289.73 4,894.78 12,833.60 - 12,833.60
(c) Insurance claims payable 194.41 - 194.41 74.52 - 74.52
(d) Debt securities 55,292.93 1,19,565.61 1,74,858.54 44,038.91 1,63,546.15 2,07,585.06
(e) Borrowings (other than debt 54,383.78 39,934.41 94,318.19 72,727.10 60,483.45 1,33,210.55
securities)
(f) Deposits 96.01 - 96.01 2,168.97 - 2,168.97
(g) Subordinated Liabilities - 15,087.75 15,087.75 4,655.06 18,953.75 23,608.81
(h) Other financial liabilities 10,406.75 31,050.42 41,457.17 25,860.84 23,389.70 49,250.54
Total financial liabilities (D) 1,26,599.49 2,06,152.87 3,32,752.36 1,66,145.06 2,66,399.47 4,32,544.53
(a) Current tax liabilities (net) 237.28 15.72 253.00 626.28 280.02 906.30
(b) Provisions 975.43 143.12 1,118.55 104.94 246.17 351.11
(c) Provision for policyholders' - 43,549.30 43,549.30 - 30,076.82 30,076.82
liabilities
(d) Deferred tax liabilities (net) 0.38 2,157.24 2,157.62 - 2,643.73 2,643.73
(e) Other non-financial liabilities 3,135.67 13.68 3,149.35 4,169.82 40.13 4,209.95
Total non-financial liabilities (E) 4,348.76 45,879.06 50,227.82 4,901.04 33,286.87 38,187.91
TOTAL LIABILITIES (F = D+E) 1,30,948.25 2,52,031.93 3,82,980.18 1,71,046.10 2,99,686.34 4,70,732.44
NET TOTAL ASSETS / (LIABILITIES) (C-F) 40,564.16 36,205.79 76,769.95 45,491.05 26,579.72 72,070.77
49. Changes in liabilities arising from financing activities

Particulars 01-Apr-20 Cash flows Changes in Exchange Others** 31-Mar-21
fair values difference
Borrowings* 3,66,573.39 (89,797.69) - - 7,584.79 2,84,360.49
Total liabilities from financing 3,66,573.39 (89,797.69) - - 7,584.79 2,84,360.49
activities
Particulars 01-Apr-19 Cash flows Changes in Exchange Others** 31-Mar-20

fair values difference
Borrowings* 4,61,477.33 (1,04,025.90) - - 9,121.96 3,66,573.39
Total liabilities from financing 4,61,477.33 (1,04,025.90) - - 9,121.96 3,66,573.39
activities
* Comprises of Debt securities, Deposits, Subordinated Liabilities and other borrowings.
** Refers to interest expense for the year incurred by entities other than non-banking financial companies in the group.

50. Contingent liabilities, commitments and leasing arrangements:
50.1 Contingent liabilities and commitments

o Taxation matters in respect of which appeal is pending ₹ 1,174.52 million (Previous year: ₹ 1,488.26 million).
o Litigation pending against Group amounts to ₹ 195.61 million (Previous year: ₹ 194.78 million).
o Claims not acknowledged as debt ₹ 2.54 million (Previous year: ₹ 91.99 million).
The Group has received demand notices from tax authorities on account of disallowance of expenditure for earning exempt
income under Section 14A of Income Tax Act 1961 read with Rule 8D of the Income Tax Rules, 1962. The Group has filed appeal/s
and is defending its position. Based on the favourable outcome in Appellate proceedings in the past and as advised by the tax
advisors, Group is reasonably certain about sustaining its position in the pending cases, hence the possibility of outflow of
resources embodying economic benefits on this ground is remote.
Note - The Group's pending litigations mainly comprise of claims against the Group pertaining to proceedings pending with
Income Tax, Excise, Custom, Sales/VAT tax / GST and other authorities. The Group has reviewed all its pending litigations and
proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where
applicable, in the financial statements. The Group believes that the outcome of these proceedings will not have a materially
adverse effect on the Group financial position and results of operations.
o Undrawn committed credit lines subject to meeting of conditions, ₹ 5,409.25 million as at balance sheet date (Previous
year: ₹ 18,118.83 million).
o Estimated amount of contracts remaining to be executed on capital account and not provided for ₹ 432.60 million (Previous
year: ₹ 374.87 million).
o Uncalled liabilities on investments ₹ 2,288.36 million (Previous year: ₹ 3,357.63 million)
50.2. Operating lease
1) This note provides information for leases where the group is a lessee. Group has not given any property on lease
As at As at
Set out below are the carrying amounts of lease liabilities and the movements
31 March 2021 31 March 2020
Opening balance as at 2,398.43 2,478.92
Additions / (disposals) during year (1,454.82) 247.03
Accretion of interest 93.26 221.45
Lease payment for the year (236.65) (548.97)
Closing balance as at 800.22 2,398.43
2) The statement of profit or loss shows the following amounts relating to leases
Particulars Mar-21 Mar-20
Depreciation on ROU of assets 215.25 521.63
Reversal of lease pre-closure 52.83 -
Interest cost 93.26 221.45
Expenses related to short term lease 213.70 199.32

51. Disclosure as required by Indian Accounting Standard 24 – “Related Party Disclosure”:
(A) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control
or significant influence over the enterprise
Mr. Rashesh Shah
Mr. Venkatchalam Ramaswamy
Ms. Vidya Shah
Ms. Aparna T.C.
(B) Key Management Personnel

Mr. Rashesh Shah - Chairman, Managing Director & CEO
Mr. Venkatchalam Ramaswamy - Vice Chairman & Executive Director
Mr. Himanshu Kaji - Executive Director
Mr. Rujan Panjwani - Executive Director
Mr. S. Ranganathan - Chief Financial Officer (up to 31 October 2020)
Mr. Sarju Simaria - Chief Financial Officer (w.e.f. 01 November 2020)
(C) Relatives of individuals exercising significant influence and relatives of KMP, with whom transactions have taken place
Ms. Kaavya Venkat
Ms. Shilpa Mody
Ms. Sejal Premal Parekh
Mr. A V Ramaswamy
Ms. Sneha Sripad Desai
Mr. Neel Shah
Ms. Avanti Shah
Mr. Nalin Kaji
Ms. Shabnam Panjwani
(D) Enterprises over which Promoter / KMPs / Relatives exercise significant influence, with whom transactions have taken place
Spire Investment Advisors LLP
Mabella Investment Adviser LLP
Shah Family Discretionary Trust
Kenai Advisors LLP
(E) Associates with whom transactions have taken place

Edelweiss Securities Limited (w. e. f. 27th March 2021)
Subsidiaries of Edelweiss Securities Limited
Edelweiss Finance & Investments Limited
Edelweiss Broking Limited
Edelweiss Custodial Services Limited
Edelweiss Securities (Hong Kong) Private Limited
Edelweiss Investment Advisors Private Limited
Edelweiss Financial Services Inc
Edelweiss Financial Services (UK) Limited
Edelweiss Securities (IFSC) Limited
ESL Securities Limited
(F) Independent Directors

Mr. Berjis Desai
Mr. Kunnasagaran Chinniah
Mr. Navtej S. Nandra
Mr. P N Venkatachalam
Mr. Ashok Kini
Dr. Ashima Goyal
(G) Other Directors

Ms. Anita M George

51. Disclosure as required by Indian Accounting Standard 24 – “Related Party Disclosure” (Continued):
Transactions and balances with Related Parties:
Sr. Nature of Transaction Related Party Name 31-Mar-21 31-Mar-20
No
1 Short term loans given to Mr. Venkatchalam Ramaswamy 12.37 34.02
Ms. Aparna T. C. 649.72 353.28
Mabella Investment Advisor LLP 1,036.39 1,087.89
Kenai Advisors LLP 36.88 62.78
Mr. S. Ranganathan - 5.00
2 Redemption of Preferenc Share Mr. Rujan Panjwani 3.84 -

(including premium and dividend) Ms. Shabnam Panjwani 1.67 -
3 Short term loans given repaid by Mr. Venkatchalam Ramaswamy 22.12 24.27
Ms. Aparna T. C. 412.97 347.16
Mabella Investment Advisor LLP 1,063.09 565.03
Mr. S. Ranganathan 5.00 -
4 Dividend paid on Equity Shares Mr. Rashesh Shah - 43.59

Mr. Venkatchalam Ramaswamy - 17.41
Ms. Vidya Shah - 9.91
Shah Family Discretionary Trust - 11.63
Spire Investment Advisors LLP - 0.96
Ms. Aparna T. C. - 3.66
Ms. Kaavya Venkat - 3.54
Mr. Rujan Panjwani - 4.23
Mr. Himanshu Kaji - 1.20
Ms. Sneha Sripad Desai - 0.31
Ms. Shilpa Mody - 0.29
Ms. Sejal Premal Parekh - 0.29
Ms. Shabnam Panjwani - 0.32
Mr. A V Ramaswamy - 0.02
Mr. Navtej S. Nandra - 2.39
Ms. Avanti Shah - 0.60
Mr. P. N. Venkatachalam - 0.08
5 Interest income on loan Mr. Venkatchalam Ramaswamy 0.23 0.25

Ms. Aparna T. C. 24.72 7.82
Mabella Investment Advisor LLP 69.93 28.62
Mr. S. Ranganathan 0.21 -
6 Brokerage earned from Mabella Investment Adviser LLP - 0.14

Mr. Neel Shah - 0.01

Transactions and balances with Related Parties (Continued):
No
7 Remuneration to Mr. Rashesh Shah 11.48 50.19
Mr. Rujan Panjwani 11.29 38.19
Mr. Himanshu Kaji 10.77 36.91
Mr. Venkatchalam Ramaswamy 9.36 35.63
Ms. Shabnam Panjwani 8.29 12.92
Ms. Vidya Shah 1.84 4.24
Mr. Neel Shah - 1.27
Mr. Sarju Simaria 4.55 -
Mr. S. Ranganathan 5.79 25.18
8 Sitting fees paid to Mr. Berjis Desai 0.52 0.26

Mr. Biswamohan Mahapatra 0.86 1.02
Mr. Kunnasagaran Chinniah 1.66 0.96
Mr. Navtej S. Nandra 0.78 0.68
Mr. P N Venkatachalam 2.20 2.00
Dr. Ashima Goyal 0.12 0.10
Mr. Ashok Kini 0.30 0.47
9 Commission paid to Mr. Berjis Desai 0.50 1.00

Mr. Biswamohan Mahapatra 0.50 1.00
Mr. Kunnasagaran Chinniah 0.50 1.00
Mr. Navtej S. Nandra 0.50 1.00
Mr. P N Venkatachalam 0.50 1.00
Dr. Ashima Goyal 0.50 -
Mr. Ashok Kini 0.50 -
10 Branding fees received from Edelweiss Securities Limited 0.34 -
11 Brokerage expenses paid to Edelweiss Securities Limited 0.48 -
12 Clearing charges expenses paid to Edelweiss Custodial Services Limited 0.15 -
13 Commission and brokerage Edelweiss Finance & Investments Limited 0.08 -

received from
14 Corporate Guarantee support fee Edelweiss Finance & Investments Limited 0.02 -
income
15 Cost reimbursement received from Edelweiss Broking Limited 3.15 -

Edelweiss Custodial Services Limited 5.94 -
Edelweiss Finance & Investments Limited 0.69 -
Edelweiss Securities Limited 1.99 -
ESL Securities Limited 0.04 -

No
16 Cost reimbursement paid to Edelweiss Broking Limited (0.06) -
17 Equity segment payin Edelweiss Securities Limited 616.32 -
18 Custody Fees expenses paid to Edelweiss Custodial Services Limited 0.76 -
19 Equity segment payout Edelweiss Securities Limited 1,192.42 -
20 ESOP/SAR charges received from Edelweiss Custodial Services Limited 0.01 -

21 Fee & commision expenses paid to Edelweiss Broking Limited 9.15 -
22 Fixed assets sold to Edelweiss Broking Limited 5.64 -

23 Fund Accounting Fee expenses paid to Edelweiss Custodial Services Limited 0.09 -
24 Interest income on loan given to Edelweiss Broking Limited 0.10 -

25 Interest income on margin placed Edelweiss Custodial Services Limited 0.16 -

with
26 Interest expense on margin shortfall Edelweiss Custodial Services Limited 4.16 -

paid to
27 Interest paid on debentures to Edelweiss Finance & Investments Limited 0.27 -
28 Loan repaid by (Actual Basis) Edelweiss Broking Limited 120.00 -
29 Loan repaid by (Max Basis) Edelweiss Broking Limited 120.00 -
30 Margin placed with Edelweiss Custodial Services Limited 7,781.02 -
31 Margin placed with (Max basis) Edelweiss Custodial Services Limited 181.37 -
32 Margin placed by Edelweiss Finance & Investments Limited 5.13 -
33 Margin repaid by Edelweiss Custodial Services Limited 6,898.95 -

No
34 Margin repaid by (Max basis) Edelweiss Custodial Services Limited 511.05 -
35 Margin repaid to Edelweiss Finance & Investments Limited 0.13 -
36 Other expense Edelweiss Financial Services Inc (0.01) -
37 Sale of securities to Edelweiss Finance & Investments Limited 10.58 -
38 Reimbursements paid to Edelweiss Broking Limited 0.07 -
39 Reimbursements received from Edelweiss Broking Limited 0.16 -

Edelweiss Securities (IFSC) Limited 0.18 -
40 Research Services Fees expenses Edelweiss Securities Limited 2.10 -
Sr. Balances Related Party Name 31-Mar-21 31-Mar-20

No
1 Preference shares held by Mr. Rujan Panjwani - 2.30
2 Short Term Loan Given to Mr. Venkatchalam Ramaswamy - 9.75

Ms. Aparna T. C. 242.87 6.12
Mabella Investment Advisor LLP 496.16 522.86
3 Investment in Equity Shares of Edelweiss Securities Limited 124.52 -
4 Accrued interest income on margin Edelweiss Custodial Services Limited 7.91 -

placed with
5 Accrued interest expenses on Edelweiss Finance & Investments Limited 0.28 -

debentures issued to
6 Corporate guarantee given to Edelweiss Custodial Services Limited 14,500.00 -

7 Interest accrued on loan give to Edelweiss Broking Limited 2.01 -

8 Margin placed by Edelweiss Finance & Investments Limited 5.00 -
9 Margins receivable from clients Edelweiss Custodial Services Limited 1,537.02 -

Sr. Balances Related Party Name 31-Mar-21 31-Mar-20
No
10 Debentures issued to Edelweiss Finance & Investments Limited 90.38 -
11 Short term loans given to Edelweiss Finance & Investments Limited 3,355.00 -
12 Trade & other payable to Edelweiss Broking Limited 55.35 -

Edelweiss Financial Services Inc 0.70 -
13 Trade and other receivable from Edelweiss Broking Limited 55.71 -

Edelweiss Financial Services Inc 0.03 -
Edelweiss Financial Services (UK) Limited 0.02 -
Edelweiss Investment Advisors Private Limited 3.07 -
Edelweiss Securities (Hong Kong) Private Limited 0.04 -
Notes:
Information relating to remuneration paid to key managerial person mentioned above excludes provision made for gratuity
and provision made for bonus which are provided for group of employees on an overall basis. These are included on cash basis.
52. Capital management
The Group manages the capital structure by a balanced mix of debt and equity. The Group’s capital management strategy
is to effectively determine, raise and deploy capital so as to create value for its shareholders. The Group maintains sound
capitalisation both from an economic and regulatory perspective. The Group continuously monitors and adjusts overall capital
demand and supply in an effort to achieve an appropriate balance of the economic and regulatory considerations at all times
and from all perspectives. These perspectives include specific capital requirements from rating agencies.
Capital structure includes infusion in the form of equity and structured debt from strategic business partners in certain of Group’s
subsidiaries to fund expansion and assist in achieving expected growth in the competitive market.
No changes were made in the objectives, policies or processes during the financial years ended 31 March 2021 and 31 March 2020.
This framework is adjusted based on underlying the macro-economic factors affecting business environment, financial market
conditions and interest rates environment. Group monitors capital using debt-equity ratio, which is total debt divided by total equity.

Total Debt 2,84,360.49 3,66,573.39
Equity 76,769.95 72,070.77
Net Debt to Equity 3.70 5.09

53. Share based payments: Employee Stock Option Plans and Stock Appreciation Rights Plans
Edelweiss Financial Services Limited ("EFSL" hereafter), has recognised share based payment expenses for the years ended 31
March 2021 and 31 March 2020 based on fair value as on the grant date calculated as per option pricing model. The grants
represent equity-settled options under the Employee Stock Option Plans and Stock Appreciation Rights Plans (hereafter referred
to as, "ESOP 2011" and "SAR 2019" or "ESOPs" "SARs" ).
The Edelweiss Group has granted ESOPs under the two plans viz., ESOP 2011 & SAR 2019 to its employees on an equity-settled
basis as tabulated below. The ESOPs/SARs provide a right to its holders (i.e., Edelweiss group employees) to purchase one EFSL
share for each option at a pre-determined strike price on the expiry of the vesting period. The ESOP/SAR hence represents an
European call option that provides a right but not an obligation to the employees of the Edelweiss group to exercise the option
by paying the strike price at any time on completion of the vesting period, subject to an outer boundary on the exercise period.
EFSL has granted stock options to employees of the Edelweiss group on an equity-settled basis as tabulated below.
Particulars SAR 2019 ESOP 2011

Dates of grant Varying Varying
Option Type Equity settled Equity settled
No. of outstanding options at 31 March 2021 1,67,80,500 1,82,60,651
No. of outstanding options at 31 March 2020 1,12,30,000 2,11,26,689
No. of Equity shares represented by an option 1 share for 1 option 1 share for 1 option
Fair Value per option Varies as per the grant date Varies as per the grant date
Exercise Price Varies as per the grant date Varies as per the grant date
Vesting Period 2-6 years 1-4 years
Vesting Conditions Service Service
The vesting of options is subject to the employee's continued employment with the Edelweiss group. The ESOPs shall vest as
follows:
Duration from grant date % options vesting % options vesting
12 months from the grant date - 25.00%
24 months from the grant date 33.33% 25.00%
36 months from the grant date - 25.00%
48 months from the grant date 33.33% 25.00%
60 months from the grant date - -
72 months from the grant date 33.34% -
Total 100.00% 100.00%
Plan description
Plan Name Grant Date Vesting Conditions Term of Options Payout
ESOP Plan 2011 Various As specified in tables above 1-4 years Equity settled
SAR Plan 2019 Various As specified in tables above 2-6 years Equity settled

53. Share based payments: Employee Stock Option Plans and Stock Appreciation Rights Plans (Continued)
Movement of number of Options for FY 2020-21 and 2019-20
2020-21 2019-20
Number of options
SAR 2019 ESOP 2011 Total SAR 2019 ESOP 2011 Total
Outstanding at the start of the year 1,12,30,000 2,11,26,689 3,23,56,689 - 2,05,88,627 2,05,88,627
Granted during the year* 64,25,500 19,56,500 83,82,000 1,16,25,000 40,85,000 1,57,10,000
Exercised during the year - (19,70,150) (19,70,150) - (17,46,763) (17,46,763)
Lapsed/ cancelled during the year (8,75,000) (28,52,388) (37,27,388) (3,95,000) (18,00,175) (21,95,175)
Outstanding at the end of the year* 1,67,80,500 1,82,60,651 3,50,41,151 1,12,30,000 2,11,26,689 3,23,56,689
Exercisable at the end of the year - 1,15,42,051 1,15,42,051 - 1,12,41,676 1,12,41,676
*Includes, SAR 2019 515,000, ESOP Nil (Previous year SAR 2019 515,000, ESOP 2011 1,670,825) approved but not granted.
Weighted Average Exercise Price for FY 2020-21 and 2019-20

31-Mar-21 31-Mar-20
Weighted Average Exercise Price (₹)
SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Outstanding at the start of the year 178.75 131.80 NA 117.34
Granted during the year 61.00 61.00 180.26 168.04
Exercised during the year - 35.10 - 47.27
Lapsed/ cancelled during the year 166.29 161.03 180.65 127.91
Outstanding at the end of the year 132.90 132.00 178.75 131.80
Exercisable at the end of the year NA 110.14 NA 78.84
Weighted Average Share price at the exercise date NA 35.17 NA 47.61
Outstanding Options as at 31 March 2021 and 31 March 2020

31-Mar-21 31-Mar-20
Particulars
SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Number of options outstanding 1,67,80,500 1,82,60,651 1,12,30,000 2,11,26,689
Weighted average strike price (₹) 132.90 132.00 178.75 131.80
Weighted average remaining lifetime 2.70 0.45 3.18 0.54
of options (in years)
Number of employees covered under 182 326 132 372
the scheme
Options granted during FY 2020-21 and 2019-20

31-Mar-21 31-Mar-20
Particulars
SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Number of options granted 64,25,500 19,56,500 1,16,25,000 40,85,000
Weighted average strike price (in ₹) 61.00 61.00 180.26 168.04
Weighted average remaining lifetime of options (in years) 4.00 3.50 4.00 3.50
Number of employees covered under the scheme 155 115 132 216
Weighted Average Fair value per option (in ₹) 28.23 27.24 85.08 81.21
Weighted Average Intrinsic value per option (in ₹) - - 1.44 9.03
Assumptions for Fair Value for FY 2020-21 and 2019-20

31-Mar-21 31-Mar-20
Particulars
SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Weighted average share price (in ₹) 132.93 133.01 180.17 133.12
Expected volatility (% p.a.) 56% - 72% p.a. 35% - 72% p.a. 56% - 62% p.a. 35% - 62% p.a.
Risk-free discount rate (% p.a.) 4.3% - 6.9% p.a. 4.3% - 8.5% p.a. 5.4% - 6.9% p.a. 5.4% - 8.5% p.a.
Expected dividend yield (% p.a.) 0.7% - 2.4% p.a. 0.4% - 3.1% p.a. 0.66% - 0.67% p.a. 0.4% - 3.1% p.a.

Other Disclosure
31-Mar-21 31-Mar-20
Particulars
Charges during the year due to share based 195.72 139.42 335.14 148.93 242.03 390.96
payments
Changes in fair value of share based payments due - - - - - -
to any modifications made during the year
Liability due for share based payments 344.64 783.64 1,128.28 148.93 669.25 818.18
Intrinsic value of the liability above 6.51 33.76 40.27 - - -
54. Events after reporting date

Sale of loans to Asset Reconstruction Company (ARC)
Three NBFCs in the Group had initiated sale of certain credit impaired financial assets before 31 March 2021 and for which
definitive contracts were executed post the balance sheet date. These financial assets sold after 31 March 2021, amounted to
` 6,862.40 million to asset reconstruction companies trusts (ARC Trust). As per Ind AS 109, Financial Instruments, prescribed
under section 133 of the Companies Act, 2013 significant judgement is involved in classification of assets which has been
accentuated on account of factors caused by COVID-19. Accordingly, on account of subsequent sale to and recovery from ARC
Trusts of such credit impaired assets, management has recorded such financial assets as recoverable and not as credit impaired
financial assets. EFSL, the holding Company has, undertaken substantially all risks and rewards in respect of these financial assets
aggregating to ` 5,221.70 million. As at 31 March 2021, there are no impact on the financial statements of the Group other than
expected credit loss recorded in the Profit and Loss Statement for the year ended 31 March 2021 amounting to ` 170.60 million.
Sale of loans to AIF trusts

Two NBFCs in the Group had initiated sale of certain financial assets before 31 March 2021 and for which definitive contracts
were executed post the balance sheet date. These financial assets sold after 31 March 2021, amounted to ` 3,439.60 million
to AIF trusts. As per Ind AS 109, Financial Instruments, prescribed under section 133 of the Companies Act, 2013 significant
judgement is involved in classification of assets which has been accentuated on account of factors caused by COVID-19.
Accordingly, management assessed that such loans sold by these subsidiaries after 31 March 2021 had an increased risk but
were not credit impaired. As at 31 March 2021, there are no impact on the financial statements of these subsidiaries, as they
have not incurred any loss on sale of these financial assets.
55. Fair Value Measurement

55.1. 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 (i.e., an exit price), regardless of
whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been
derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained in Note 55.4
55.2. Valuation governance :

The Group's fair value methodology and the governance over its models includes a number of controls and other procedures
to ensure appropriate safeguards are in place to ensure its quality and adequacy. All new product initiatives (including their
valuation methodologies) are subject to approvals by various functions of the Group including the risk and finance functions.
Where fair values are determined by reference to externally quoted prices or observable pricing inputs to models, independent
price determination or validation is used. For inactive markets, Company sources alternative market information, with greater
weight given to information that is considered to be more relevant and reliable.
The responsibility of ongoing measurement resides with the business and product line divisions. However Finance department is
responsible for establishing procedures governing valuation and ensuring fair values are in compliance with accounting standards.

55. Fair Value Measurement (Continued)

55.3. 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. Exchange
traded and OTC derivatives are at gross amount i.e. before offsetting margin money. The impact of offsetting is explained in
note 10.1.
31 March 2021
Particulars
Level 1 Level 2 Level 3 Total
Assets measured at fair value on a recurring basis
Derivative financial instruments (assets)
Exchange-traded derivatives 2,625.87 206.24 - 2,832.11
OTC derivatives - 177.56 - 177.56
Embedded derivatives in market-linked debentures issued - - 23.79 23.79
Total derivative financial instruments (assets) 2,625.87 383.80 23.79 3,033.46
Stock-in-trade
Government Securities 8,636.63 - - 8,636.63
Debt Securities 181.88 12.90 52.15 246.93
Mutual Fund 1,136.21 - - 1,136.21
Equity Instruments 5,721.59 - 5.40 5,726.99
Preference Shares - - - -
Stock-in-trade 15,676.31 12.90 57.55 15,746.76
Investments
Government securities 90.17 22,963.85 - 23,054.02
Debt securities 502.63 7,423.21 1,562.76 9,488.60
Mutual fund units 2,053.87 - - 2,053.87
Security receipts - - 37,472.98 37,472.98
Units of AIF 19.51 - 9,765.93 9,785.44
Equity instruments 9,763.01 1,058.71 17,393.66 28,215.38
Preference Shares 28.15 - 1,759.12 1,787.27
Others 958.17 - 226.48 1,184.65
Total investments measured at fair value 13,415.51 31,445.77 68,180.93 1,13,042.21
Loans and other financial assets measured at fair value - - 2,089.30 2,089.30
Property Plant and equipment 12,245.20 12,245.20
Total financial assets measured at fair value on a recurring basis 31,717.69 31,842.47 82,596.77 1,46,156.93


55.3. Assets and liabilities by fair value hierarchy (Continued)
Particulars 31 March 2020
Derivative financial instruments (assets)
Exchange-traded derivatives 1,061.72 1,160.73 - 2,222.45
Embedded derivatives in market-linked debentures issued - - 2,637.76 2,637.76
Total derivative financial instruments (assets) 1,061.72 1,706.59 2,637.76 5,406.07
Stock-in-trade
Government Securities 7,462.91 - - 7,462.91
Debt Securities 12.32 695.51 - 707.83
Mutual Fund 6,500.47 - - 6,500.47
Equity Instruments 1,766.73 - 1,020.00 2,786.73
Preference Shares 0.13 - - 0.13
Stock-in-trade 15,742.56 695.51 1,020.00 17,458.07
Investments
Government securities 262.08 17,865.26 - 18,127.34
Debt securities - 6,632.90 581.91 7,214.81
Mutual fund units 762.08 - - 762.08
Security receipts - - 42,646.81 42,646.81
Units of AIF 18.59 - 4,269.90 4,288.49
Equity instruments 5,319.08 1,614.21 494.80 7,428.09
Preference Shares 49.01 - 1,905.53 1,954.54
Total investments measured at fair value 6,410.84 26,112.37 49,898.95 82,422.16
Loans and other financial assets measured at fair value - 78.62 5,479.21 5,557.83
Property Plant and equipment - - 12,245.20 12,245.20
Total financial assets measured at fair value on a recurring basis 23,215.12 28,593.09 71,281.12 1,23,089.33
Particulars 31 March 2021

Liabilities measured at fair value on a recurring basis
Derivative financial instruments (liabilities):
Exchange-traded derivatives 658.50 68.33 - 726.83
Embedded derivative liabilities in market-linked debentures - - 1,373.35 1,373.35
Non convertible debentures issued - - 8,750.76 8,750.76
Short sales 529.70 - - 529.70
Total financial liabilities measured at fair value on a recurring basis 1,188.20 701.65 10,124.11 12,013.96


55.3. Assets and liabilities by fair value hierarchy (Continued)
31 March 2020
Particulars
Derivative financial instruments (liabilities):
Exchange-traded derivatives 730.89 2,874.91 - 3,605.80
OTC derivatives 1.89 904.22 - 906.11
Embedded derivative liabilities in market-linked debentures - - 735.01 735.01
Non convertible debentures issued - - 10,779.73 10,779.73
Short sales 1,372.17 - - 1,372.17
Total financial liabilities measured at fair value on a recurring basis 2,104.95 3,779.13 11,514.74 17,398.82
55.4. Fair valuation techniques :
Government debt securities

Government debt securities are financial instruments issued by sovereign governments and include both long term bonds and
short-term bills with fixed or floating rate interest payments. These instruments are generally highly liquid and traded in active
markets resulting in a Level 1 classification. In life insurance business, CRISIL security level prices are considered.
Debt securities
Whilst most of these instruments are standard fixed or floating rate securities, however nifty linked debentures have embedded
derivative characteristics. Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing
in the market as at the reporting date. Group has used quoted price of national stock exchange wherever bonds are traded
actively. In cases where debt securities are not activity traded Group has used CRISIL Corporate Bond Valuer model for measuring
fair value.
Security receipts
The market for these securities is not active. Therefore, the Group uses valuation techniques to measure their fair values.
Since the security receipts are less liquid instruments therefore they are valued by discounted cash flow models. Expected
cash flow levels are estimated by using quantitative and qualitative measures regarding the characteristics of the underlying
assets including prepayment rates, default rates and other economic drivers. Securities receipts with significant unobservable
valuation inputs are classified as Level 3.
Equity instruments
The majority of equity instruments are actively traded on recognised stock exchanges with readily available active prices on
a regular basis. Such instruments are classified as Level 1. Equity instruments in non-listed entities are initially measured at
transaction price and re-measured at each reporting date at valuation provided by external valuer at instrument level. Such
unlisted equity securities are classified at Level 3.
Units of Alternative Investment Funds and Mutual Fund.

Units held in Alternative Investment funds are measured based on fund net asset value (NAV), taking into account redemption
and/or other restrictions. Such instruments are classified at Level 3.
Open-ended funds that are redeemable at any time, and that report a daily net asset value (NAV) and for which sufficient
subscriptions and redemptions occur at NAV are measured at NAV and classified as level 1.

55.4. Fair valuation techniques : (Continued)

Loans measured at fair value through profit or loss
Loans are segregated, as far as possible, into portfolios of similar characteristics. Fair values are based on observable market
transactions, when available. When they are unavailable, fair values are estimated using valuation models incorporating range
of input assumptions. Group has determine fair value with help of internal valuation team and independent valuer on case
to case basis. Valuation is based on discounted cash flow, comparable transaction market price, market research and marked
trend as considered appropriate.
Derivatives
The Group enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit
ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, exchange
traded futures and options contracts. The most frequently applied valuation techniques include quoted price for exchange
traded derivatives and Black Scholes models (for option valuation).
OTC derivatives:
Under Interest rate swap contract, the Company agrees to exchange the difference between fixed and floating rate interest
amount calculated on agreed notional principal. Such contracts enable the Company to mitigate the risk of changing interest
rate. The fair value of interest rate swap is determined by discounting the future cash flows using the curves at the end of
reporting period and the credit risk inherent in the contract. Company classify the Interest rate swaps as level 2 instruments.
Exchange traded derivatives

Exchange traded derivatives includes index/stock options, index/stock futures, company uses exchange traded prices to value
these derivative and classify these instrument as level 1.
Embedded derivatives
An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host contract with the effect
that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
Group uses valuation models. Inputs to valuation models are determined from observable market (Indices) data wherever
possible, including prices available from exchanges, dealers, brokers. Group classify these embedded derivative as level 2
instruments.
55.5. Transfer between Level 1 and level 2

During the year there were no transfers between level 1 and level 2. Similarly, there were no transfers from or transfer to level 3.
55.6. Financial instruments not measured at fair value

The following table sets out the fair values of financial instruments not measured at fair value and analysing them by the level
in the fair value hierarchy into which each fair value measurement is categorised. The information given below is with respect to
financial assets and financial liabilities measured at amortised cost for which the fair value is different than the carrying amount.
Carrying amounts of cash and cash equivalents, trade receivables, trade and other payables as on 31 March 2021 approximate
the fair value because of their short-term nature. Difference between carrying amounts and fair values of bank deposits, other
financials assets and other financial liabilities is not significant in each of the years presented.

55 Fair Value Measurement (Continued)

55.6. Financial instruments not measured at fair value (Continued)
31-Mar-21
Total Total fair Level 1 Level 2 Level 3
Particulars
Carrying value
Amount
Financial assets:
Loans 2,17,016.16 2,12,616.84 - - 2,12,616.84
Debt securities 1,66,107.78 1,74,989.81 38,382.72 1,10,816.61 25,790.48
Borrowing (other than debt securities) 94,318.19 94,321.42 233.27 27,121.11 66,967.04
Subordinated liabilities 15,087.75 15,037.27 - 15,037.27 -
Off-balance sheet items

Loan commitments 5,235.05 4,729.19 - - 4,729.19
31-Mar-20
Particulars Total Carrying Total fair Level 1 Level 2 Level 3
Amount value
Financial assets:
Loans 2,78,127.58 2,81,767.78 - - 2,81,767.78
Debt securities 1,96,805.33 2,07,562.29 28,596.10 1,40,369.16 38,597.03
Borrowing (other than debt securities) 1,33,210.55 1,33,216.52 4,251.82 35,787.24 93,177.45
Subordinated liabilities 23,608.81 25,842.30 - 25,842.30 -
Off-balance sheet items

Loan commitments 17,916.64 16,937.41 - - 16,937.41
55.7. 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 and, as such, may
differ from the techniques as explained in Notes 55.4.
Financial assets at amortised cost

The fair values financial assets measured at amortised cost are estimated using a discounted cash flow model based on
contractual cash flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit risk.
Issued Debt
The fair value of issued debt is estimated by a discounted cash flow model.

55.8. Movement in level 3 financial instruments measured at fair value
The following tables show a reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities which are recorded at fair value.
Financial assets Financial liabilities

Security Equity & Debt AIFs Loans Derivative Others Derivative Non-
Particulars Receipts Preference Securities classified financial financial convertible
as FVTPL assets liabilities debentures
issued
As at 31 March 2020 42,646.81 3,420.33 581.91 4,269.90 5,479.21 2,637.76 - 735.01 10,779.73
Purchases 11,911.63 18,594.19 2,257.71 9,344.59 33.75 - 226.48 - -
Sales* (14,351.91) (2,942.62) (1,201.43) (4,166.90) (111.44) (1.35) - (50.41) -
Issuance - - - - - 23.92 - 507.89 -
Settlements - - - (48.09) - (1,774.13) - (626.42) (2,187.03)
Gain / (Loss) (2,733.55) 86.28 (23.28) 366.43 (3,312.22) (862.41) - 807.28 158.06
As at 31 March 2021 37,472.98 19,158.18 1,614.91 9,765.93 2,089.30 23.79 226.48 1,373.35 8,750.76
Unrealised Gain / (Loss) (3,853.54) (34.18) (75.19) 219.88 (3,268.54) (757.40) - (583.66) 1,604.11
As at 31 March 2019 53,121.56 835.99 406.50 2,957.36 5,896.70 580.81 - 1,469.09 14,212.19
Purchases 10,260.91 2,570.92 713.97 3,314.55 1,026.85 - - - -
Sales (15,407.99) (724.16) (412.29) (1,439.92) (113.73) - - - -
Issuance - - - - - (760.01) - 13.56 152.00
Settlements - - (21.50) (626.51) - 357.48 - (310.07) (2,294.94)
Gain / (Loss) (5,327.67) 737.58 (104.77) 64.42 (1,330.61) 2,459.48 - (437.57) (1,289.52)
As at 31 March 2020 42,646.81 3,420.33 581.91 4,269.90 5,479.21 2,637.76 - 735.01 10,779.73
Unrealised Gain / (Loss) (250.46) 733.17 - (5.04) (1,313.95) 2,458.91 - (467.89) 1,715.12
*includes financial assets & financial liabilities derecognised

55.9. Unobservable inputs used in measuring fair value categorised within Level 3 and sensitivity of fair value measurement to change in
unobservable market data.
As at 31 March 2021
Type of Financial Valuation Significant Range of estimates Increase Change in Decrease Change in

Instruments Techniques Unobservable for unobservable in the fair value in the fair value
input input unobservable because of unobservable because of
input increase in input decrease in
unobservable unobservable
input input
Investments in Net asset value NAV per security ` 850 to ` 987 per 5% 91.77 5% (91.77)
security receipts method receipt security receipt
Discounted Cash Flow ` 3,97,158.71 million 5% 2,254.42 5% (2,251.65)
projected cash
flow
Discount rates 12% 50 basis (278.82) 50 basis 286.70
point point
Investments in units Net Asset Fair value of ` 92,370.10 million 5% 412.22 5% (412.22)
of AIF approach underlying ` 14 to ` 2,30,419 5% 234.33 5% (234.33)
investments per Unit
NAV per unit 5% 0.38 5% (0.38)
`1,307.98 - ` 10,015
` 249.80 million 5% 12.49 5% (12.49)
Investments in Comparable Fair value per ` 1,080 per shares 5% 29.49 5% (29.49)
unquoted equity transaction and share ` 135 to ` 209,453 per 5% 10.48 5% (10.48)
shares and preference P/E share
shares categorised at ` 2 to ` 34,418 per 5% 1.05 5% (1.05)
Level 3 share
` 209,453 per share 5% 11.06 5% (11.06)
` 3,591 per unit 5% 5.37 5% (5.37)
` 42.85 per share 5% 58.47 5% (58.47)
` 50 to ` 209,453 5% 4.13 5% (4.13)
per share
5% 0.05 5% (0.05)
unobservable market data. (Continued)
As at 31 March 2021
input input
Loans classified as Comparable Discounting rate 15% - 20% 1% A one 1% A one
FVTPL transaction and percentage percentage
P/E point change point change
in the in the
discounting discounting
rate used in rate used in
fair valuation fair valuation
of Level 3 of Level 3
assets docs assets docs
not have a not have a
significant significant
impact in its impact in its
value value
Warrants Comparable Fair value of 5% 5.60 5% (5.60)

transaction and underlying
P/E investments
Debt investments Discounted cash Discount rate 17.47% 5% (1.00) 5% 1.00

classified at FVTPL flow Expected future ` 13,98,496 per NCD 5% 9.30 5% (9.30)
cash flows
Fair value per ` 98,69,011 per NCD 5% 67.25 5% (67.25)
instrument
Fair value per ` 10,000 per NCD 5% 2.00 5% (2.00)
instrument
Fair value of Price per ` 1,03,424 to ` 1,08,423 5% 2.61 5% (2.61)
index debenture per debenture

unobservable market data. (Continued)
As at 31 March 2021

input input
Embedded derivatives Fair value of Index levels 5% (56.87) 5% 56.87
in market-linked index
debentures issued Fair value using Nifty level ` 14,690.70 million 5% 77.70 5% (64.30)
(Assets/ liability) (net) Black Scholes Risk-adjusted 4.50% to 6% 1% 17.70 1% (16.60)
model or Monte discount rate
Carlo approach
based on the
embedded
derivative
Debt Securities Discounted Cash Flow ` 1,43,272.94 million 7,163.65 340.15 (7,163.65) (340.15)
(Liability) projected cash
flow
Discount rates 12% 0.50% (98.85) 0.50% 101.31
Land, Flats and Discounted Cash Flow - 5% - 5% -
Buildings projected cash Discount rates 12% 50 basis - 50 basis -
flow point point
55.9. Unobservable inputs used in measuring fair value categorised within Level 3 and sensitivity of fair value measurement to change in unobservable
market data (continued)
As at 31 March 2020
Type of Financial Valuation Significant Range of estimates for Increase in the Change in fair Decrease Change in fair
Instruments Techniques Unobservable unobservable input unobservable value because in the value because
input input of increase in unobservable of decrease in
unobservable input unobservable
input input
Investments in Net asset value NAV per security - 5% 0.0025 5% (0.0025)
security receipts method receipt
Discounted Cash Flow 5,24,105.72 5% 3,791.53 5% (3,791.53)
projected cash Discount rates 12.0% to 21.6% 50 basis point 3,606.56 50 basis point 582.50
flow
Investments in units Net Asset Fair value of ` 983 to ` 240,319 5% 22.19 5% (22.19)
of AIF approach underlying per unit
investments ` 153 to ` 240,320 5% 85.07 5% (85.07)
per unit
` 1,719.19 million to 5% 19.47 5% (19.47)
` 12,035.98 million
NAV per unit ` 498.72 5% 1.17 5% (1.17)
` 5,779.93 million 5% 244.70 5% (244.70)
- 5% 0.66 5% (0.66)
Investments in Comparable Fair value per ` 5 to ` 8,106 per unit 5% 8.36 5% (8.36)
unquoted equity transaction and share ` 84 to ` 201,509 per 5% 73.43 5% (73.43)
shares and P/E share
preference shares ` 1.40 to ` 18,117 per 5% 10.71 5% (10.71)
categorised at share
Level 3 ` 166 to ` 201,509 per 5% 30.34 5% (30.34)
share
` 1,020 per share 5% 51.00 5% (51.00)
` 7,141 per share 5% 1.85 5% (1.85)
` 2,01,509 per share 5% 1.01 5% (1.01)
- 5% 1.77 5% (1.77)

unobservable market data (Continued)
As at 31 March 2020

input input
Debt investments Comparable Fair value of the ` 10,000 per NCD 5% 2.00 5% (2.00)
classified at FVTPL transaction and instrument
P/E
Units of venture Net Asset Fair value of ` 197,289 to ` 217,942 5% 5.95 5% (5.95)
fund approach underlying per unit
investments
Warrants Comparable Fair value of ` 3.5 per unit of 5% 2.63 5% (2.63)

transaction and underlying warrants
P/E investments
- 5% 7.63 5% (7.63)
Loans classified as Comparable Discounting rate 15% - 20% 1% A one 1% A one
FVTPL transaction percentage percentage
value point change point change
in the in the
discounting discounting
rate used in rate used in
fair valuation fair valuation
of Level 3 of Level 3
assets docs assets docs
not have a not have a
significant significant
impact in its impact in its
value value
unobservable market data (Continued)
As at 31 March 2020
input input
Embedded Fair value using Nifty levels ` 8,597.75 million 5% 11.36 5% (11.36)
derivatives in Black Scholes 0.05 5% 1.99 5% (1.99)
market-linked model or Monte - 5% 28.19 5% (28.19)
debentures issued Carlo approach Discount rates 4.5 to 10% 5% (4.05) 5% 4.05
(asset) (net) based on the
embedded
derivative
Embedded Fair value using Index levels ` 8,597.75 million 5% 0.89 5% (0.89)
derivatives in Black Scholes - 5% - 5% -
market-linked model or Monte Discount rates 4.5 to 10% 5% (0.30) 5% 0.30
debentures issued Carlo approach
(liability) (net) based on the
embedded
derivative
Non-convertible Discounted Expected gross 1,68,797.22 5% 468.93 5% (468.93)
debentures issued projected cash recoveries
flow ` 12,74,436 per NCD 5% 8.48 5% (8.48)
Discount rates 12% - 17.34% 5% (123.50) 5% 123.50
Land, Flats and Discounted Cash Flow - 5% - 5% -

Buildings projected cash Discount rates 0.12 50 basis point - 50 basis point -
flow

56. Risk Management
56.1. Introduction and risk profile
The Edelweiss Group ("The Group") provides a broad range of financial products and services to a substantial and diversified client
base that includes corporations, institutions and individuals. The Group's products and services span multiple asset classes and
consumer segments across domestic and global geographies. The Group's key lines of business can broadly be classified as below
o Credit (Retail Credit, Corporate Credit and Distressed Credit)
o Franchise & Advisory (Wealth Management, Asset Management and Capital Markets)
o Insurance (Life and General)
o Asset reconstruction
o Treasury
The Group's diversified businesses acts as an inherent risk management mechanism. However, the prevailing market environment
exposes the Group to various risks like credit, market, liquidity, compliance, technology amongst others. As the Group is regulated
various regulators in the financial industry - from RBI to NHB to SEBI to IRDA, it also exposes it to regulatory and reputation risks.
56.2. Risk management strategy:
The strategy at an execution level is supported by -
1. Four-tiered risk management structure to manage and oversee risks
2. Board and Executive Level Committees to review and approve risk exposures
3. Risk Management framework to ensure each risk the Group is exposed to is given due importance and managed through
a well-defined framework and guidelines
4. Defined exposure limits and thresholds for businesses to operate
5. Well-defined Standard Operating Procedures and Product approval framework to ensure risks are mitigated at operational
level
6. Adequate segregation of duties to ensure multi-layered checks and balances
7. Exception reporting framework to ensure process and policy deviations are adequately addressed
56.3. Risk management structure
To support the risk strategy and effective risk management, the Group have the "Four-tiered risk management structure" to ensure
that there are enough defences available to control all types of risk issues. The risk structure is enumerated below
1. Three lines of defense - for accountability, oversight, and assurance
o Respective Businesses and Business Risk teams - the first line of defense own and manage the risks and are responsible
for implementation of the risk management framework

56. Risk Management (Continued)
56.3. Risk management structure (Continued)

o Group risk - the second line of defense and is responsible for overseeing the risk and defining the risk management
framework
o Corporate Controller and audit - the third line of defense to provide independent assurance of risk management framework
implementation
2. Board and Executive level Committees - for overseeing the risk management. The current Risk Management Committees
are
o Board Risk Committee
o Global Risk Committee
o Enterprise Risk Management Council
o Investment and Credit Committees
The Board Risk Committee is the overseeing body for Risk Management at the Group level. The Committee meets on regular
interval to review the risk profile of the Company.
The Enterprise Risk Management (ERM) Council and the Global Risk Committee serve as the Apex Risk bodies of the Group. The
constituents include Chairman & CEO, Executive Directors and Group Heads of Finance, Compliance, Technology, Risk, Corporate
Services as its core members. The Committee meets regularly to identify, evaluate and mitigate potential extreme risks and take
risk management decisions in relation to strategic matters.
The Investment and Credit Committee serve as the Apex bodies of the Group for all credit related decisions. Respective businesses
has formulated its own Investment and Credit Committees depending upon the exposure scale.
Risk management framework
The Group has a Risk Framework, which describes the risk management approach and provides clear accountability for managing
risk across the Group. The framework is subject to continuous evaluation based on existing internal as well external environment.
The current "Eleven risk framework" covers the following vectors of risks
o Business Risk
o Credit Risk
o Market Risk
o Liquidity Risk
o Regulatory Risk
o Reputation Risk

56.3. Risk management framework (Continued)
o Technology Risk
o Operational and Process Risk
o Fraud Risk
o People Risk
o Physical and Infrastructure Risk
The Group uses different types of tools and techniques for mitigating risk, depending upon the type of risk and quantum. For
example:
o Financial risks are mitigated through thorough counterparty, client assessment before any exposure is taken, and defined
product/program level risk limits to ensure exposure does not exceed risk appetite. Committee based approval mechanism
is adopted to ensure high exposures are approved with adequate representation and there is no bias in approvals.
o Non-financial risks viz technology, operational, fraud, etc are mitigated through process documentation defining clear
ownership for each activity, having adequate system/process level controls like maker-checker, reconciliation, testing and
reviews.
o Enterprise level risks viz. reputation, compliance, regulatory, etc are controlled through policies and framework, educating
employees through training and risk socialisation sessions.
56.4. Risk management framework of General Insurance ("EGICL")
Governance framework
The core of the EGICL risk philosophy lies in the identification, measurement, monitoring and management of risk. We believe
that enough is never enough when it comes to risk management: for us, it is a continuous, vital process that is an inalienable
part of EGICL DNA.
Risk is therefore directly overseen at all levels in EGICL. The Governance structure can thus be seen from three focal points:
1. The Business Users would form the First Line of defence. First Line of defense would ensure that risk and control environment
is established into their day to day activities. This line of defense would also:
A. Implement proactive and reactive risk management tools in their processes.
B. Review their processes for adequacy of effectiveness of controls.
C. Report on the level of the risks and effectiveness of controls to the second line of defense on periodic basis.
D. Respond to Regulatory/ Operational/ Business changes quickly and keep the second line of defense informed on the
developments.

56.4. Risk management framework of General Insurance ("EGICL") (Continued)
2. Risk Management, and Compliance team forms part of the Second Line of Defense. The second line of defense is oversight
function and would provide direction and guidance to the first line of defense for implementation of EGICL's Board driven
policies. Second line of defense would also monitor implementation efficiency of these policies and provide overall oversight
to the business processes and risks.
3. Independent assurance providers like internal auditors, external auditors, statutory auditors, regulatory auditors etc. forms
third line of defense and provides independent assurance. Independent assurance function will have direct access to the
Board of EGICL. Statutory and Regulatory auditors would have independence as per Statutory and Regulatory assurance
framework of the country.
The Insurance Regulatory and Development Authority (IRDAI) vide its circular number IRDA/F&A/GDL/CG/100/05/2016 dated 18
May 2016 has issued Guidelines on Corporate Governance for the Insurance Sector. Basis the circular, the following committees
form part of the overall risk governance framework:
o Risk Management Committee

o Audit Committee
o Investment Committee
o Policyholder protection Committee
The Risk Management Committee is responsible for periodic review of the risk management process to ensure that the process
initiatives are aligned to the desired objectives. EGICL has Chief Risk Officer who is responsible for the implementation and
monitoring of the framework. Further, the key policies adopted under the Risk Framework are as under:
o Underwriting Policy
o Investment Policy
o Asset Liability Management Policy
o Reinsurance Program
o Information Security Policy
o Outsourcing Policy
o Fraud Risk Management Policy
o Financial authority Matrix
Regulatory framework
Regulators are primarily interested in protecting the rights of policyholders and monitor them closely to ensure that the EGICL is
satisfactorily managing affairs for their benefit. At the same time, regulators are also interested in ensuring that EGICL maintains an
appropriate solvency position to meet unforeseeable liabilities arising from economic shocks or natural disasters. The operations
of EGICL are subject to regulatory requirement within the jurisdiction it operates.

Asset liability management (ALM) framework
The ALM policy adopted by EGICL helps in:
o Understanding all risks requiring the coordination of assets and liabilities.
o Quantify interest rate risks and equity risks.
o Quantify the solvency position under various stresses in terms of fall in equity markets, changes in interest rates, change
in new business mix and volumes, increase/decrease in loss ratios and expense ratios and other risks as deemed fit.
o Quantify the extent of mismatch between the assets and liabilities and thereby prescribe appropriate measures to bridge
the gap
Granularity of the exercise:
The analysis is carried out at an LOB level as per the IRDAI guidelines. If reserves held under any line of business fall below 5% of
the total reserves as at the given valuation date the corresponding line of business is excluded for the ALM exercise.
Asset Valuation:
Asset valuation and bucketing of assets basis the duration will be as per Ind AS and IRDAI regulations. Assets will be allocated to
different lines of in proportion the net technical reserves for that line of business.
Liability profiling:
The technical reserves consist of:
1. Unearned Premium Reserves (UPR)
2. Premium Deficiency Reserve (PDR)
3. Incurred But Not Reported (IBNR) reserves
4. Outstanding claims reserves
UPR and PDR can be apportioned basis the policy term outstanding. Outstanding claims reserves and IBNR will be apportioned
basis the expected reserve utilisation. Where data is available the reserving techniques like Chain Ladder method can provide
significant inputs on the development profile for the claims. Where data is not available, industry benchmarks or assumptions
related to the claims profile will be made to arrive at the suitable run off pattern for the liabilities. The emerging claims experience
will be periodically reviewed by the actuarial department to take into account any changes in the same.


Insurance risk
The principal risk, EGICL faces under insurance contracts, is that the actual claims payments or the timing thereof differ from
expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development
of long-term claims. Therefore, the objective of EGICL is to ensure that sufficient reserves are available to cover these liabilities.
EGICL has developed a risk strategy to manage the risks appropriately. EGICL's risk management strategy is to establish measures
and controls which will assist in prevention, detection and management of risks for strong risk management system. Such risk
management system will identify risk at macro as well as micro level on ongoing basis.
The risk identification, assessment and evaluation activity is followed by defining appropriate action items for ensuring effective
management of the risks. EGICL mitigates the risks by careful section of the underwriting strategy, reinsure a part of the risk with
various reinsurers, diversification of all insurance contracts and acquiring business from all parts of the Country.
The main Insurance Risks that EGICL is exposed to are as follows:
I. Product Pricing Risk: The loss ratios are assumed at the time of pricing the product. There is a risk of not pricing the products
adequately due to model error/ data selection or biases / lack of relevant data or inadequate underwriting assumptions
leading to losses greater than anticipated.
II. Fraud Risk - Excessive, invalid, duplicate or fraudulent claims.
III. Reinsurance Risk - EGICL enters into reinsurance agreements in order to mitigate insurance Risk. However, this leads to
default Risk from the reinsurer at the time of claim payment or also concentration risk if all the Risk is insured to one
reinsurer.
IV. Investment Risk - Risk of loss arising from actual returns being different than expected. Credit risk due to investee enterprise
defaulting on its debt payments.
V. Expense Risk - Risk of loss arising from expense experience being different than expected.
VI. Concentration Risk - EGICL faces concentration Risk by selling business to specific geography or by writing only single line
business etc.
Control Measures:
EGICL has set up Risk Management framework to continuously monitor EGICL's experience with regard to parameters like loss
ratios and investment returns. The underwriting team, with actuarial guidance, has set in place processes and procedures to
review proposal.
EGICL has entered into a separate agreement with reinsurers to cover the catastrophic risks to hedge against catastrophic events
leading to higher than expected claim payouts.
EGICL has been taking efforts so as to mitigate concentration risk through diversification however EGICL may still be exposed to
channel concentration risk as EGICL channels are not yet fully developed. EGICL has been acquiring business from all the parts of
India and thus has little geographical concentration. It also insulates EGICL from impact of catastrophic risk.

56.5. Risk management framework of Life Insurance business (“ETLIFE”)
a. Governance framework
The primary objective of the ETLIFE’s risk and financial management framework is to protect the ETLIFE’s shareholders as
well as policyholders from events that hinder the sustainable achievement of financial performance objectives, including
failing to exploit opportunities.
ETLIFE has an effective Risk Management Framework in place which provides for risk identification, risk assessment and
evaluation, monitoring, tracking and feedback mechanism framework to identify, evaluate business risks and opportunities.
ETLIFE has a risk balancing approach and follows the process of risk evaluation, monitoring and control. ETLIFE has
structured and uniform method of risk monitoring and control through the Risk and Control Self- Assessment (RCSA)
Framework.
ETLIFE continuously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors
has overall responsibility for the establishment and oversight of ETLIFE’s risk management framework. This is supplemented
with the clear organizational structure and documented delegated authorities and responsibilities from the board of
directors to various executive management committees.
b. Capital management objectives, policies and approach
The primary source of capital used by ETLIFE is Equity. ETLIFE’s policy is to maintain a strong capital base so as to maintain
investor, creditor and market confidence and to sustain future development of the business. The capital requirements are
routinely forecast on a periodic basis and assessed against both the forecast available capital and the expected internal
rate of return, including risk and sensitivity analysis. The process is ultimately subject to approval by the Board.
ETLIFE has established the following capital management objectives, policies and approach to managing the risks that affect
its capital position:
• To comply with the insurance capital requirements that the IRDAI require. In this respect, the IRDAI has prescribed
minimum solvency ratio of 150% (refer note on Capital Management for solvency ratio);
• To maintain the required level of stability of ETLIFE, thereby providing a degree of security to policyholders
• To allocate capital efficiently and support the development of business by ensuring that returns on capital employed
meet the requirements of its capital providers and shareholders
• To retain financial flexibility by maintaining strong liquidity and access to a range of capital markets
• To align the profile of assets and liabilities, taking account of risks inherent in the business
• To maintain financial strength to support new business growth and to satisfy the requirements of the policyholders,
regulators and stakeholders
• To maintain strong credit ratings and healthy capital ratios in order to support its business objectives and maximise
shareholders value

56.5. Risk management framework of Life Insurance business (“ETLIFE”) (Continued)
b. Capital management objectives, policies and approach (Continued)
In reporting, financial strength, capital and solvency are measured using the rules prescribed by the Insurance Regulatory
Authority of India (IRDAI). These regulatory capital tests are based upon required levels of solvency, capital and a series of
prudent assumptions in respect of the type of business written. ETLIFE’s Capital Management Policy for its business is to hold
sufficient capital to cover the statutory requirements based on the IRDAI directives and maintain a health solvency ratio.
c. Regulatory framework
Regulators are primarily interested in protecting the rights of policyholders and monitor them closely to ensure that the
ETLIFE is satisfactorily managing affairs for their benefit. At the same time, regulators are also interested in ensuring that
ETLIFE maintains an appropriate solvency position to meet unforeseeable liabilities arising from economic shocks or natural
disasters. The operations of ETLIFE are subject to regulatory requirement within the jurisdiction it operates.
d. Asset liability management (ALM) framework
Financial risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general
and specific market movements. The main risk that ETLIFE faces, due to the nature of its investments and liabilities, is
interest rate risk. ETLIFE manages these positions within an ALM framework that has been developed to achieve long-
term investment returns in excess of its obligations under insurance and investment contracts. The principal technique of
ETLIFE’s ALM is to match assets to the liabilities arising from insurance and investment contracts by reference to the type
of benefits payable to contract holders. For each distinct category of liabilities, a separate portfolio of assets is maintained.
ETLIFE’s ALM is:
• Integrated with the management of the financial risks associated with ETLIFE’s other financial assets and liabilities
not directly associated with insurance and investment liabilities.
• As an integral part of the insurance risk management policy, to ensure in each period sufficient cash flow is available
to meet liabilities arising from insurance and investment contracts.
ETLIFE undertakes Asset Liability Management to reduce interest rate risk. The company uses expected future cashflows
from already written policies and investments to assess the interest rate risk. The ETLIFE enters into interest rate derivative
contracts, solely to hedge the residual interest rate risk. Derivatives are financial instruments which attempt to mimic
the economic performance of an underlying asset, security or portfolio. Interest rate derivatives include forward rate
agreement, interest rate futures and Interest rate swaps.
ETLIFE uses Forward Rate agreements and Interest rate futures to minimise the exposure to fluctuations in interest rates
on plan assets and liabilities. ETLIFE has a Board approved Derivative policy covering strategic objectives, limits, regulatory
and operational framework. It underscores risks inherent in a derivative contract along with a system for measurement
and accounting in order to have effective monitoring and control.
Hedge effectiveness is determined based on the principles laid down in the Guidance note on Derivatives issued by The
Institute of Chartered Accountants of India. ETLIFE uses regression analysis to determine Hedge effectiveness. If the hedge
is ineffective, then the movement in the Fair Value is charged to the Profit and Loss Account. However, if the hedge is
effective, further the effective and ineffective portion of the movement in the Fair Value of the Underlying and the derivative
instrument is determined by the Dollar Offset method. The effective portion is transferred to ‘Fair Value change’ account
in Balance Sheet and Ineffective portion is transferred to Profit and Loss account.

d. Asset liability management (ALM) framework (Continued)
a. Insurance risk
ETLIFE’s main lines of business are Participating Life (Individual), Non-Participating Life (Individual and Company)
and Unit Linked Life (Individual and Company). ETLIFE has presence in Non-Participating Health (Individual), Non-
participating Non-linked Variable Insurance (Company), Participating Pension (Individual), Unit Linked Pension
(Individual) and Non-Participating Annuity (Individual) business as well. By nature of the business, ETLIFE underwrites
risks and provides financial protection. In doing so, ETLIFE is exposed to various risks.
The principal risk, ETLIFE faces under insurance contracts, is that the actual claims and benefit payments or the timing
thereof differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits
paid and subsequent development of long–term claims. Therefore, the objective of ETLIFE is to ensure that sufficient
reserves are available to cover these liabilities.
ETLIFE has developed a risk strategy to manage the risks appropriately. ETLIFE’s risk management strategy is to
establish measures and controls which will assist in prevention, detection and management of risks for strong risk
management system. Such risk management system will identify risk at macro as well as micro level on ongoing basis.
The risk identification, assessment and evaluation activity is followed by defining appropriate action items for ensuring
effective management of the risks. An action item for all the high risks is defined with clear owners and timelines.
ETLIFE mitigates the risks by careful section of the underwriting strategy, reinsure a part of the risk with various
reinsurers, diversification of all insurance contracts and acquiring business from all parts of the Country.
b. Life Insurance Contracts and Investment Contracts with and without Discretionary Participation Features:
Ind AS 104 ‘Insurance Contracts’ requires ETLIFE to separate the Financial Instruments (investment contracts) from
insurance contracts under specified conditions.
Insurance contracts are those contracts where ETLIFE has accepted significant insurance risk from the policyholders
by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely
affects the policyholders. Insurance and investment contracts are further classified as being either with or without
DPF. DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are likely
to be a significant portion of the total contractual benefits.
As a general guideline by IRDAI, ETLIFE classifies contract under insurance contract and investment contracts with
DPF, if the benefit payable on death is higher by at least 5% of the premium at any time during the life of the contract
for other than unit linked products.
All other contracts are classified under Investment Contracts.
Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of
its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are
extinguished or expire.
Investment contracts, however, can be reclassified as insurance contracts after inception if insurance risk becomes
significant.

56.5. Risk management framework of Life Insurance business (“ETLIFE”) (Continued) (Continued)
c. The main Insurance Risks that ETLIFE is exposed to are as follows:
(i) Persistency Risk - Risk of loss arising due to policyholder experiences (lapses and surrenders) being different
than expected
(ii) Mortality Risk - Risk of loss arising due to policyholder mortality experience being different than expected
(iii) Investment Risk - Risk of loss arising from actual returns being different than expected
(iv) Expense Risk - Risk of loss arising from expense experience being different than expected
(v) Reinsurance Risk - The Company enters into reinsurance agreements in order to mitigate insurance Risk.
However, this leads to default Risk from the reinsurer at the time of claim payment or also concentration risk
if all the Risk is insured to one reinsurer.
(vi) Concentration Risk - The Company faces concentration Risk by selling business to specific geography or by
writing only single line business etc.
Control Measures:
ETLIFE has set up Risk Management framework to continuously monitor the ETLIFE’s experience with regard to parameters
like policy lapses, premium persistency, maintenance expenses and investment returns. The underwriting team, with
actuarial guidance, has set in place processes and procedures to review proposal.
Further, the possible financial effect of adverse mortality and morbidity experience has been reduced by entering into
re-insurance agreements with multiple re-insurers. ETLIFE has entered into a separate agreement with reinsurers to cover
the catastrophic risks under Individual and Group business to hedge against catastrophic events leading to higher than
expected claim payouts.
ETLIFE has been taking efforts so as to mitigate concentration risk through diversification however ETLIFE may still be
exposed to channel concentration risk as company is in 10th year of operation and all the channels are not yet fully
developed. ETLIFE has been acquiring business from all the parts of India and thus has little geographical concentration. It
also insulates ETLIFE from impact of catastrophic risk.
ETLIFE has a Board approved Risk Management Policy covering underwriting, claims and reserving for policy liabilities. ETLIFE
has a detailed claims processing manual in place. Complicated and large claims are referred to ETLIFE’s Claims Committee.
Operational risks:
Operational risk is the risk of loss arising from system failure, human error, fraud or external events. When controls fail to
perform, operational risks can cause damage to reputation, have legal or regulatory implications or can lead to financial loss.
The Group cannot expect to eliminate all operational risks, but by initiating a rigorous control framework and by monitoring
and responding to potential risks, the Group is able to manage the risks. Controls include effective segregation of duties,
access controls, authorisation and reconciliation procedures, staff education and assessment processes, including the
use of internal audit. Business risks such as changes in environment, technology and the industry are monitored through
the Group’s strategic planning and budgeting process. Operational risk: A risk arising from this category is resultant of
inadequate or failed internal processes and controls, poor corporate governance or from external events such as sudden
disasters crippling the operations of the Company.

Operational risks within the Company are categorized into 6 (six) types namely:
• Fraud
• Execution, delivery and process management
• Business disruption and system failures
• Clients, products and business practices
• Damage to physical assets
• Employment practices and workplace safety
Risk control and mitigation plan forms important part of the risk management processes within the Company. The Company
ensures oversight on the risks by reviewing data, processes and by performing model checks at regular frequencies.
Operational risk impact within the Company is rated basis frequency and severity matrix. Frequency and severity matrix
is further utilized for evaluation of the risk which in turn helps in prioritization. The Company, to ensures that complete
data is being processed, reconciles number of policies, premium and sum assured. The same is done by comparing Data
Conversion System (DCS) output and on-off movement data as obtained from policy administration system.
The risk management team conducts an independent root cause analysis of operational risk incidents. Root cause analysis
is followed by actual and potential risk exposure assessment. The root cause analysis helps to identify inadequacies in the
control measures for known risks or identify new risks which need to be addressed. The resultant learning is then used to
improve processes systematically.
56.6. Excessive risk concentration
Group’s diversified business model acts as an inherent mechanism to avoid excessive concentrations of risk.
Single and Group level borrower limits for wholesale lending and program level limits for retail lending have been defined as
a proactive risk measure to avoid excess credit concentration. Business risk team monitor these limits as part of its regular
monitoring activity. Additionally, the risk team also keeps track of Group, Industry, Collateral, Geography (for retail) level exposure
concentrations. These concentrations are reviewed as part of monthly risk review meetings and also discussed in the Credit
Committee, so as to avoid further exposures or reduce exposures to sector/industry/group/geography under stress.
On the trading portfolio, limit structures have been put in place to address potential concentration risks within each trading
portfolio. Any exposure beyond the approved limits and losses exceeding the VaR limits gets reported as an Exception to the
Global Risk Committee and is monitored by the group and business risk teams.
The Company has a Board approved Risk Management Policy. The Company has a detailed claims processing manual in place.

56.7. Credit risk
Credit risk is the risk of financial loss the Group may face due to current/potential inability or unwillingness of a customer or
counterparty to meet financial /contractual obligations. Credit risk also covers the possibility of losses associated with diminution
in the credit quality of borrowers or counterparties. The Group has adopted a policy of dealing with creditworthy counterparties
and obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. In case the
loans are to be restructured, similar credit assessment process is followed by the Group.
The Group manages its credit risk through a multi-layered approach as given below
1) Review by the Board Risk and Global Risk Committee.
2) The Investment Committees (IC) for approving all credit related decisions, beyond certain levels delegated to Credit
Committees. Further, individual loan specific limits as well as concentration limits are also approved by the IC and reviewed
on a periodic basis.
3) Group risk team is responsible for industry and portfolio level monitoring and stress testing.
4) Business risk does day to day client level monitoring.
5) Independent verification of all client accounts, adherence to policies and frameworks are carried out by internal audit
team.
Counterparty, client assessment is done before any exposure is taken. Assessment covers all the aspects of risk like Borrower
profile, financials, and adequacy of collateral, promoter strength, repayment capability and cash flow generation. Discussions are
held with independent risk and compliance teams both at Business and Group level before the credit proposals are put forward to
the Committees for approval. Group has committee based approval process mechanism to ensure high exposures are approved
with adequate representation from Compliance, Credit, Legal and other relevant teams so as to get a three sixty degree view on
the proposal and there is no biasness.
The Group has separate credit origination and appraisal processes for wholesale, distressed and retail segments. For wholesale
and distressed segment, the Group adopts underwriting standards for different client segment based on risk parameter and
availability of security. For Retail segment, Group adopts underwriting standards both at product and portfolio level.
The Group uses Early Warning Signal (EWS) framework to identify risks at nascent stage. The objective is to classify the credit book
on severity of risk- standard, early stage, mid stage and high stress. The classification of risk is done basis inputs from financial
and non-financial parameter. An actionable matrix is defined, based on severity of the risk.
Credit monitoring is very important part of managing credit risk. Accordingly, the Group has dual layered independent monitoring
of credit exposures and associated risks. A team of experienced and competent professionals, at business level as well as group
level, identify and monitor these risks on an on-going basis and evolve processes/systems to monitor and control the same to
keep the risks to minimum levels. On-going monitoring by them helps in identifying the risks at an early stage and taking time
bound action to mitigate those risks.
Further, counterparty settlement risk associated in our broking business is managed by maintaining sufficient liquid collateral.
We have well established real time limit utilisation monitoring process to ensure cover is sufficient at any given point of time.

56.7. Credit risk (Continued)
Asset quality review is also performed on a regular basis by the Global Risk Committee - the apex body for all risk related
decisions. Credit Portfolio Health Check is also presented to the Board Risk Committee on a quarterly basis.
The Group applies the expected credit loss model for recognising impairment loss. For the purpose of measuring lifetime
expected credit loss (‘ECL’) the Company has used a practical expedient as permitted under Ind AS 109. This expected
credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience
and adjusted for forward-looking information.
The Group has separate credit origination and appraisal processes for wholesale, distressed and retail segments. For
wholesale and distressed segment, the Group adopts underwriting standards for different client segment based on risk
parameter and availability of security. For Retail segment, Group adopts underwriting standards both at product and
portfolio level.
The expected credit loss is a product of exposure at default, probability of default and loss given default. The Group has
devised an internal model to evaluate the probability of default and loss given default based on the parameters set out in
Ind AS 109. Accordingly, the loans are classified into various stages for different type of business. For non-distress credit
business they are classified into Stage 1 – Standard Assets with zero to thirty days past due (DPD), Stage 2 – Significant
Credit Deterioration or overdue between 31 to 90 days and Stage 3 – Default Assets with overdue for more than 90 days.
Further, ECL also takes into account forward looking factors like GDP growth, interest rates etc. along with historical trends.
The Group determines that whether there has been a significant increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used.
Credit loss is the difference between all contractual cash flows that are due to an entity in accordance with the contract
and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR (or credit-
adjusted EIR for purchased or originated credit impaired financial assets). Expected Credit Loss computation is not driven
by any single methodology, however methodology and approach used must reflect the following:
o An unbiased and probability weighted amount that evaluates a range of possible outcomes;
o Reasonable and supportable information that is available without undue cost and effort at the reporting date about
past events, current conditions and forecasts of future economic conditions;
o The time value of money.
While the time value of money element is currently being factored into ECL measurement while discounting cash
flows by the Effective Interest Rate (EIR), the objective of developing a macroeconomic model using exogenous
macroeconomic variables (MEVs) is to address the first two requirements. This will be achieved by using the model
output to adjust the PD risk component in order to make it forward looking and probability-weighted.
Group does internal grading that is based on days past due (dpd) as specified below
Internal rating grade Internal grading description

Performing
High grade 0 dpd and 1 to 30 dpd
Standard grade 31 to 90 dpd
Non-performing
Individually impaired 90+ dpd

Significant increase in credit risk (SICR)
Group considers a financial instrument defaulted, classified as Stage 3 (credit-impaired) for ECL calculations, in all cases when the
borrower becomes 90 days past due. Classification of assets form stage 1 to stage 2 has been carried out based on SICR criterion.
Accounts which are more than 30 days past due have been identified as accounts where significant increase in credit risk has been
observed. These accounts have been classified as Stage 2 assets. As a part of a qualitative assessment of whether a customer
is in default, the Group also considers a variety of instances that may indicate unlikeliness to pay. When such events occur, the
Group carefully considers whether the event should result in treating the customer as defaulted and therefore assessed as Stage
3 for ECL calculations or whether Stage 2 is appropriate.
Management evaluates the credit situation continuously and the current credit assessment of borrowers is based on the following
factors including many factors such as;
1. Whether there is actual or expected significant change in the credit situation which entails significant increase in credit risk.
2. Whether there are existing or forecasted adverse changes in borrower’s business, financial or economic conditions that
are expected to cause a significant change in the borrower’s ability to meet its debt obligations.
3. Based on information available at present, Whether in the longer term current adverse changes created by Covid-19 in
economic and business conditions can reduce the ability of the borrower to fulfil its obligations.
4. Whether there are any significant changes in the expected performance and behavior of the borrower.
5. Whether there are expected changes in the loan documentation, including an expected breach of contract that might lead
to covenant waivers or amendments, interest payment holidays, interest rate step-ups, requiring additional collateral or
guarantees, or other changes to the contractual framework of the loan.
Reasonable and supportable information that is forward-looking and that is available without undue cost or effort is used by
management to assess changes in credit risk.
However, considering that the current economic situation is continuously evolving, the management shall apply on regular basis
any favorable or detrimental change to the borrower profiles and accordingly factor in macro/micro variables that shall represent
the evolved inherent credit risk.
Probability of Default
Historical DPD data is used to calculate historic default rates for each portfolio. This is done by using transition matrix which are
calculated by assessing the transition from the one DPD state to the default DPD state 12 months from the cohort date.
Loss Given Default (LGD)
The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the
mitigating effect of collateral value at the time it is expected to be realised and the time value of money. The Loss Given Default
(LGD) has been computed with workout methodology. Workout LGD is widely considered to be the most flexible, transparent
and logical approach to build an LGD model. Along with actual recoveries, value of the underlying collateral has been factored
in to estimate future recoveries in LGD computation. Workout LGD computation involves the actual recoveries as well as future
recoveries (as a part of the workout process) on a particular facility, as a percentage of balance outstanding at the time of Default/
Restructuring. The assessment of workout LGD was then performed. Principal outstanding at NPA was assessed, which went into
the denominator of the LGD calculation. LGD computation has been done for each segment and sub-segment separately.

Exposure at Default (EAD)
The amount which the borrower will owe to the portfolio at the time of default is defined as Exposure at Default (EAD). While
the drawn credit line reflects the explicit exposure for the Group, there might be variable exposure that may increase the EAD.
These exposures are of the nature where the Group provides future commitments, in addition to the current credit. Therefore,
the exposure will contain both on and off balance sheet values. The value of exposure is given by the following formula:
EAD = Drawn Credit Line + Credit Conversion Factor * Undrawn Credit Line
Where,
Drawn Credit Line = Current outstanding amount
Credit Conversion Factor (CCF) = Expected future drawdown as a proportion of undrawn amount Undrawn Credit Line = Difference
between the total amount which the Group has committed and the drawn credit line While the drawn exposure and limits for
the customer are available, the modelling of CCF is required for computing the EAD.
Purchased or originated credit impaired (POCI)
Financial assets that are purchased or originated at a deep discount that reflects the incurred credit losses are considered to be
POCI. This population includes the recognition of a new financial instrument following a renegotiation where concessions have
been granted for economic or contractual reasons relating to the borrower’s financial difficulty, that otherwise would not have
been considered.
Forward looking adjustments
A measure of ECL is an unbiased probability-weighted amount that is determined by evaluating a range of possible outcomes
and using reasonable and supportable information that is available without undue cost or effort at the reporting date about past
events, current conditions and forecasts of future economic conditions.
To fulfil the above requirement Group has incorporated forward looking information into its measurement of ECL. The objective of
developing a macroeconomic model using exogenous macroeconomic variables (MEVs) is to address the requirements of unbiased,
probability weighted outcomes while taking into account current conditions as well as future economic conditions. This will be
achieved by using the model output to adjust the PD risk component in order to make it forward looking and probability-weighted.
Exogenous macroeconomic parameters were used as independent (X) variables to predict the dependent (Y) variable. Keeping
in mind Ind AS requirements around obtaining reliable and supportable information, without incurring undue cost or effort-
based on advice of risk committee members and economic experts and consideration of a variety of external actual and forecast
information, the group formulates base case view of the future direction of relevant economic variable as well as a representative
range of other possible forecast scenario. This process involves developing two or more additional economic scenarios and
considering the relative probabilities of each outcome.
Data sourcing: External information includes economic data and forecasts published by governmental bodies and monetary
authorities in the country, supranational organisations such as the OECD and the IMF, and selected private sector and academic
forecasters. Macroeconomic information was aggregated from Economic Intelligence Unit (EIU), Bloomberg, World Bank, RBI
database. The EIU data has a database of around 150 macroeconomic variables as well as their forecasted values. Beyond 2022
macro-economic variables are forecasted by mean reverting the values to their long term average.

Probability weighted scenario creations: To incorporate macroeconomic impact into probability-weighted, each scenario has
an associated probability. In order to ensure consistency across macroeconomic models, these probabilities were calculated at
an overall level for both Retail and Non-Retail portfolios, keeping in mind that though the impact of a scenario across different
portfolios may differ based on endogenous factors, the probability of a scenario unfolding is purely exogenous, and hence should
not vary.
The group has identified and documented key drivers of credit risk and credit losses for each portfolio of financial instruments
and using an analysis of historical data, has estimated relationship between macro-economic variables and credit risk and credit
losses.
The significant economic parameters scenarios are as below:
Key Economic Parameter Base FY +1 Base FY +2

Debt-to-GDP ratio: 18.3-18.7% 18.7-19.2%
Total factor productivity 4.0-4.5 4.4-5.0
Labor productivity growth: 5.1-5.5% 5.5-6.3%
Unemployment rate 8.5-8.8% 8.5-8.8%
Gross Domestic Product 7.0-7.5% 7.5-8.0%
Apart from the above significant economic parameters, the Group has also identified and used few other economic parameter
to build up the forward looking scenarios. These indicators include inflation, forecasted growth in real estate sector, expectation
of industry performance, collateral coverage movement, conduct of accounts and expectation of market liquidity.
Above explained indicators have supported in measurement of ECL, and behaviours of such indicators will suitably support going
forward in measurement of forward looking scenarios.
Predicted relationship between the key indicators and default and loss rates on various portfolios of financial assess have been
developed based on analysing historical data over the past 5 years.
56.7.1.Overview of modified and forborne loans
From a risk management point of view, once an asset is forborne or modified, the Group’s special department for distressed
assets continues to monitor the exposure until it is completely and ultimately derecognised.
The table below includes Stage 2 and 3 assets that were modified and, therefore, treated as forborne during the period, with the
related modification loss suffered by the Group.

Amortised costs of financial assets modified during the period 7,101.90 80.19
Net modification gains (117.69) (3.23)

56.7.2. Analysis of risk concentration
The following table shows the risk concentration by industry for the components of the balance sheet. Additional disclosures for credit quality and
the maximum exposure for credit risk per categories based on the Group's internal grading system and year-end stage classification are further

disclosed in Note 13.1.
Industry analysis - Risk concentration for 31 March 2021

Financial Government Manufacturing Retail and Construction Oil & gas Services Others Total
Components
services wholesale
Cash and bank 47,221.29 - - - - - 380.77 - 47,602.06
balances
Derivative financial 2,902.03 - - - - - - - 2,902.03
instruments
Stock in trade 2,618.02 8,636.63 1,155.70 3.06 60.97 6.13 957.39 2,308.86 15,746.76
Trade receivables 187.01 - 1,511.81 491.06 1,154.88 - 1,534.72 181.01 5,060.49
Loans 6,465.87 - 8,038.79 66,955.55 1,19,618.82 - 5,556.99 12,469.44 2,19,105.46
Investments 43,610.86 24,134.57 24,830.00 859.07 12,554.42 21.71 5,414.37 3,338.02 1,14,763.02
Other financial assets 11,811.78 287.84 - 164.29 86.22 - 3.79 274.15 12,628.07
Total 1,14,816.86 33,059.04 35,536.30 68,473.03 1,33,475.31 27.84 13,848.03 18,571.48 4,17,807.89
Other Commitments - - - 1,340.64 - - - - 1,340.64
Industry analysis - Risk concentration for 31 March 2020

Financial Government Manufacturing Retail and Construction Oil & gas Services Others Total
Components
services wholesale
Cash and bank 86,064.80 - - - - - 31.28 - 86,096.08
balances
Derivative financial 5,321.87 - - - - - - - 5,321.87
instruments
Stock in trade 8,474.61 7,462.91 23.58 - 1.39 61.91 556.18 877.49 17,458.07
Trade receivables 5,538.81 - 2,415.95 1,898.30 1,358.87 - 1,163.12 677.33 13,052.38
Loans 3,610.77 - 8,972.52 1,13,918.73 1,26,330.14 493.62 10,409.83 19,871.18 2,83,606.79
Investments 22,424.01 18,755.10 21,183.34 914.17 11,650.37 14.91 1,716.68 6,007.44 82,666.02
Other financial assets 6,649.97 287.80 - 1,060.46 78.62 - 139.83 85.65 8,302.33
Total 1,38,084.84 26,505.81 32,595.39 1,17,791.66 1,39,419.39 570.44 14,016.92 27,519.09 4,96,503.54
Other Commitments - - - 4,491.93 505.16 - - - 4,997.09
56.7.3. Collateral and other credit enhancements

The tables on the following pages show the maximum exposure to credit risk by class of financial asset.
Maximum exposure to credit risk
Particulars Principal type of collateral
31 March 2021 31 March 2020
Financial assets
Loans:
Retail Loans and Wholesale loans 2,03,638.58 2,65,105.17 Equity shares and Mutual fund units, Bonds,
Property; book receivables, Land, real
estate property securities, and Tangible
assets , Inventories, fixed deposits & other
marketable securities,Surrender Value of the
Policy
Distressed assets 13,223.15 12,882.28 Tangible assets
Other credits 154.43 140.13
Trade receivables 5,060.49 13,052.37 Equity shares, fixed deposits and bank
guarantees, Securities etc.
Debt instruments at amortised cost 1,305.81 243.86 Government security and Book debts
(including Highly liquid Central/State
Government securities & high rated
Corporate Bonds)
Total financial assets at amortised cost 2,23,382.46 2,91,423.81
Derivative financial instruments 2,902.03 5,321.87 Margin money

Financial assets at FVTPL 70,802.54 66,840.26 Tangible assets, Warrants
Financial instrument designated at fair 10,726.26 7,446.04 Tangible assets and Highly liquid Central/
value through profit or loss State Government securities, high rated
Corporate Bonds and liquid Mutual fund units
Total financial instruments at fair value 84,430.83 79,608.17
through profit or loss
Debt instruments at fair value through OCI 16,846.91 14,615.77 Government security and Book debts
Total debt instruments at fair value 16,846.91 14,615.77
through OCI
Other commitments (max exposure) 5,301.84 16,556.52 Property, book receivables, Tangible Assets,
Equity Shares, Mutual Fund units, Land,
Office Space, Flats, Bungalow, Penthouse,
Row house and Commodities.
Total 3,29,962.04 4,02,204.27
The Group has not entered in to any credit derivative to mitigate above credit risk


56.7.4. Fair value of collateral held for stage 3 assets
The below tables provide an analysis of the current fair values of collateral held and credit enhancements for stage 3 assets.
Dependent on the level of collateral, some Stage 3 exposures may not have individual ECLs when the expected value of the
collateral is greater than the LGD, even in if the future value of collateral is forecast using multiple economic scenarios.
As at 31 March 2021
Maximum Associated ECL Carrying amount Fair value of
exposure to collateral
credit risk
Particulars
(carrying
amount before
ECL)
Financial assets
Loans:
Retail and wholesale loans 60,248.59 13,515.54 46,733.06 51,894.87
Distressed assets 3,207.01 517.04 2,689.97 10,054.61
Total financial assets at amortised cost 63,455.60 14,032.58 49,423.03 61,949.48
Debt instruments at fair value through OCI 674.27 (11.40) 685.67 685.67
Total 64,129.87 14,021.18 50,108.70 62,635.15
Loan commitments 138.98 1.40 137.58 20.28
Financial guarantee contracts - - - -
Total 64,268.85 14,022.58 50,246.28 62,655.43
As at 31 March 2020
Maximum Associated ECL Carrying amount Fair value of
exposure to collateral
credit risk
Particulars
(carrying
amount before
ECL)
Financial assets
Loans:
Retail and wholesale loans 56,625.97 8,413.81 48,212.16 65,513.60
Distressed assets 3,288.03 537.37 2,750.66 13,657.64
Total financial assets at amortised cost 59,914.00 8,951.18 50,962.82 79,171.24
Debt instruments at fair value through OCI 1,258.00 438.94 819.06 819.06
Total 61,172.00 9,390.12 51,781.88 79,990.30
Loan commitments 127.38 0.19 127.19 134.96
Financial guarantee contracts - - - -
Total 61,299.38 9,390.31 51,909.07 80,125.26

56.7.5 Margin received from clients

Particulars 31 March 2021* 31 March 2020
Cash margin A - 17,699.53
Non cash margin
Securities** - 24,470.53
Fixed deposits - 13,127.90
Bank guarantee - 2,054.23
Total non cash margin B - 39,652.66
Total margin received (A+B) - 57,352.19
* Refer Note 67
** Securities received as non cash margin from clients as collateral are held in the a subsidiary’s client demat account
56.8 Liquidity risk and funding management
Liquidity risk emanates from the mismatches existing on the balance sheet due to differences in maturity and repayment profile
of assets and liabilities. These mismatches could either be forced in nature due to market conditions or created with an interest
rate view. Such risk can lead to a possibility of unavailability of funds to meet upcoming obligations arising from liability maturities.
To avoid such a scenario, Edelweiss has ensured maintenance of a Liquidity Cushion in the form of Fixed Deposits, Mutual
Funds, Cash, G-Sec, etc. These assets carry minimal credit risk and can be liquidated in a very short period of time. A liquidity
cushion amounting to 10-12% of the borrowings is sought to be maintained through such assets. These would be to take care of
immediate obligations while continuing to honour our commitments as a going concern. There are available lines of credit from
banks which are drawable on notice which further augment the available sources of funds. Funding is raised through diversified
sources including Banks, Retail issue, Mutual Funds, ECB, Sub Debt etc to maintain a healthy mix.
Group has a Liquidity Contingency Policy in place to ensure various liquidity parameters are defined and tracked regularly. Liquidity
Management Team is provided with update on expected liquidity shortfalls in Normal as well as Stress scenario. A detailed set
of activities have been defined to be executed during stress scenario.
56.8.1.Analysis of financial liabilities, financial assets, derivatives and financial commitments by remaining contractual maturities
The table below summarises the maturity profile of the undiscounted cash flows of the Group’s financial liabilities, financial
assets, derivatives and financial commitments as at 31 March.
The tables have been drawn up based on the undiscounted cash flows i.e. the tables include both interest and principal cashflows.
The contractual maturity with respect to financial liabilities is based on the earliest date on which the Group can be required to
pay. To the extent that interest flows are at floating rate, the undiscounted amount is derived based on the interest rates in force
at the balance sheet date. Further, with regards to amounts payable in currencies other than Indian Rupees, the amounts are
determined based on the spot exchange rates at the balance sheet date. The analysis with respect to financial assets is based
on expected maturities. All derivatives which are entered into for trading purposes are shown in the earliest time band. With
respect to other derivatives, the remaining contractual maturity information has been given based on undiscounted cash flows.


56.8.1. Analysis of financial liabilities, financial assets, derivatives and financial commitments by remaining contractual maturities
(Continued)
As at 31 March 2021
Upto Between Between 6 Between More than Total
Non-derivative financial liabilities 3 months 3 to 6 months to 1 1 year to 3 3 years
months year years
Trade payables 2,865.23 714.42 1,025.60 197.80 91.73 4,894.78
Borrowings (other than debt securities) 34,791.55 12,343.26 19,934.53 38,318.34 6,300.57 1,11,688.25
Debt securities 7,343.32 14,710.24 42,818.97 79,343.38 81,349.29 2,25,565.20
Subordinated financial liabilities 315.25 67.82 1,702.04 6,014.60 13,835.67 21,935.38
Deposits 96.01 - - - - 96.01
Lease liabilities 52.87 65.07 90.38 420.43 305.25 934.00
Other financial liabilities 5,971.51 3,232.87 1,538.08 9,286.23 22,548.73 42,577.42
Total undiscounted non-derivative 51,435.74 31,133.68 67,109.60 1,33,580.78 1,24,431.24 4,07,691.04
financial liabilities
Upto 3 Between Between Between More than Total

Non-derivative financial assets months 3 to 6 months 1 year to 3 years
6 months to 1 year 3 years
Cash and cash equivalent and other bank 40,452.74 199.98 1,844.94 520.77 5,247.99 48,266.42
balances
Stock-in-trade 13,739.20 1,758.68 320.03 4.50 14.46 15,836.87
Trade receivables 2,103.50 840.16 1,294.20 3,188.03 - 7,425.89
Loans 50,966.15 13,240.26 31,178.66 95,561.14 1,05,814.88 2,96,761.09
Investments at fair value through profit or loss 1,967.86 7,185.97 10,136.33 23,567.55 22,060.69 64,918.40
Investments at fair value through profit or loss 808.51 1,618.45 4,139.25 18,601.85 31,159.90 56,327.96
pledged as collateral
Investments at designated fair value through 211.37 166.37 385.33 3,353.42 17,940.98 22,057.47
profit or loss
Investments at FVOCI 458.59 175.60 1,066.74 2,447.63 41,652.72 45,801.28
Investments at FVOCI pledged as collateral - - - - - -
Investments at amortised cost 350.48 82.55 868.92 - 418.39 1,720.34
Investments at amortised cost pledged as - - - - - -
collateral
Other financial assets 10,915.54 300.00 145.04 530.21 737.36 12,628.15
Total undiscounted non-derivative financial 1,21,973.94 25,568.02 51,379.44 1,47,775.10 2,25,047.37 5,71,743.87
assets
Upto Between Between Between More than Total

Derivatives 3 months 3 to 6 6 months 1 year to 3 3 years
months to 1 year years
Net settled derivatives entered into for trading 1,696.86 - - - - 1,696.86
purposes
Other net settled derivatives 151.67 (12.69) (427.72) (662.08) (39.91) (990.73)
Total 1,848.53 (12.69) (427.72) (662.08) (39.91) 706.13
Upto 3 Between Between Between More than Total

Commitments months 3 to 6 6 months 1 year to 3 years
months to 1 year 3 years
Undrawn loan and other commitments 3,838.13 118.14 4,144.86 938.99 323.20 9,363.32
The Group has undrawn lines of credit available aggregating ₹ 5,856.88 million as at 31 March 2021 to meet any possible liquidity
shortfall.

56.8.1. Analysis of financial liabilities, financial assets, derivatives and financial commitments by remaining contractual maturities
(Continued)
As at 31 March 2020
Upto Between Between Between More than Total
Non-derivative financial liabilities 3 months 3 to 6 6 months 1 year to 3 years
months to 1 year 3 years
Trade payables 11,256.29 902.20 571.41 103.73 - 12,833.63
Borrowings (other than debt securities) 28,590.53 12,286.70 34,885.71 52,777.65 11,297.61 1,39,838.20
Debt securities 34,613.77 9,381.40 25,959.02 85,511.34 98,281.62 2,53,747.15
Subordinated financial liabilities 5,173.95 574.90 523.28 4,184.58 14,931.56 25,388.27
Deposits 2,615.49 - - - - 2,615.49
Lease liabilities 144.97 113.00 217.89 965.48 586.75 2,028.09
Other financial liabilities 4,013.79 583.62 2,093.48 4,593.35 2,838.75 14,122.99
Total undiscounted non-derivative 86,408.79 23,841.82 64,250.79 1,48,136.13 1,27,936.29 4,50,573.82
Upto 3 Between Between 6 Between More than Total

Non-derivative financial assets months 3 to 6 months to 1 year to 3 years
months 1 year 3 years
Cash and cash equivalent and other bank 60,576.50 6,884.90 10,679.90 478.07 5,124.01 83,743.38
balances
Stock-in-trade 12,355.29 221.10 4,941.33 4.45 12.91 17,535.08
Trade receivables 7,422.74 1,607.02 2,945.43 3,208.08 4.59 15,187.86
Loans 23,382.18 21,241.83 43,642.30 1,01,060.42 1,20,484.61 3,09,811.34
Investments at fair value through profit or loss 699.68 168.62 1,310.20 11,189.22 31,958.41 45,326.13
Investments at fair value through profit or loss 2,372.03 1,060.57 6,497.96 15,959.27 31,837.66 57,727.49
pledged as collateral
Investments at designated fair value through 211.54 30.15 279.39 1,834.55 15,041.73 17,397.36
profit or loss
Investments at FVOCI 429.74 402.37 775.26 2,830.82 34,542.89 38,981.08
Investments at FVOCI pledged as collateral - - - - - -
Investments at amortised cost 240.00 - - - - 240.00
Investments at amortised cost pledged as - - - - - -
collateral
Other financial assets 6,457.29 470.15 1,186.99 866.25 175.43 9,156.11
Total undiscounted non-derivative financial 1,14,146.99 32,086.71 72,258.76 1,37,431.13 2,39,182.24 5,95,105.83
assets
Upto 3 Between Between Between More than 3 Total

Derivatives months 3 to 6 6 months to 1 year to years
Net settled derivatives entered into for trading (1,437.14) - - - - (1,437.14)
purposes
Other net settled derivatives 2,016.29 (466.09) 47.02 1,091.99 (4.37) 2,684.84
Total 579.15 (466.09) 47.02 1,091.99 (4.37) 1,247.70
Upto 3 Between Between Between More Total

Commitments months 3 to 6 6 months to 1 year to than 3 years
Undrawn loan and other commitments 1,695.87 15,785.86 4,820.94 807.28 931.00 24,040.95
The Group has undrawn lines of credit available aggregating ₹ 20,423.68 million as at 31 March 2020 to meet any possible liquidity
shortfall.
56.9. Market Risk:
Market risk is the risk which can affect the Group's income or the value of its holdings of financial instruments due to adverse
movements in market prices of instrument due to interest rates, equity prices, foreign exchange rates and credit spreads. The
objective of the Group's market risk management is to manage and control market risk exposures within acceptable parameters.
The Group separates its exposure to market risks between trading and non-trading portfolios.
Exposure to market risk
Interest rate risk - The principal risk to which non-trading portfolios are exposed is the risk of loss from fluctuations in the future
cash flows or fair values of financial instruments because of a change in market interest rates. Interest rate risk is managed
principally through monitoring interest rate gaps and by having pre-approved limits for repricing bands.
ALCO is the monitoring body for compliance with these limits. ALCO reviews the interest rate gap statement and the mix of floating
and fixed rate assets and liabilities. Balance Sheet Management Unit is in-charge for day to day management of interest rate risk.
Foreign exchange risk - Our foreign exposure is limited to capital investment in our Group entities outside India and profits/loss
generated by these entities. The Treasury Unit aggregates the foreign exchange exposure emerging out these outflows/inflows
and the same is hedged to ensure we do not run any foreign exchange risk in our books. Positions are regularly monitored by
the Treasury Unit and rebalanced based on the inflow and outflow of funds.
Equity price risk - The Treasury and Balance Sheet Management Units effectively evaluates various risks involved in underlying
assets in trading and non-trading books respectively
Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial
instruments. The Group's policy is to monitor positions on a daily basis and hedging strategies are used to ensure positions are
maintained within the established limits.
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 and equity. The sensitivity to profit before tax is the effect of the assumed
changes in interest rates on the profit before tax for the year, based on the floating rate financial assets and financial liabilities
held at reporting date. Thus, the sensitivity analysis has been prepared assuming the amount of the floating-rate financial
liability and financial assets outstanding at the end of the reporting period was outstanding for the whole year. The sensitivity
of equity is calculated by revaluing the fixed rate FVOCI, including the effect at reporting date for the effects of the assumed
changes in interest rates.
Currency of item 2020-21

Increase in Effect on Effect on Decrease in Effect on Effect on
basis points profit before Equity basis points profit before Equity
tax tax
INR 25.00 (264.82) (423.24) 25.00 264.82 423.24
INR 5.00 0.15 - 5.00 (0.15) -
Currency of item 2019-20

basis points profit before Equity basis points profit before Equity
tax tax
INR 25.00 (483.18) (383.89) 25.00 483.18 383.89


56.9. Market Risk: (Continued)
Currency risk:
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Foreign currency risk arise majorly on account of foreign currency borrowings.
The table below indicates the currencies to which the Group had significant exposure at the end of the reported periods.
2020-21
Increase in Effect on Decrease in Effect on
Currency Effect on Effect on
exchange profit before exchange profit before
Equity Equity
rate (%) tax rate (%) tax
US dollar 5.00 (221.29) - 5.00 221.29 -
Others 5.00 2.25 - 5.00 (2.25) -
Currency 2019-20
exchange rate profit before Equity exchange rate profit before Equity
(%) tax (%) tax
US dollar 5.00 0.50 - 5.00 (0.50) -
INR* 5.00 (10.15) - 5.00 10.15 -
Others 5.00 (43.02) - 5.00 43.02 -
* This is on account of items denominated in Indian Rupees held by certain foreign companies in the Group having functional
currency other than INR
Equity Price risk:

Equity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
the level of individual investment in equity share prices.
2020-21
Impact on
equity price profit before Equity equity price profit before Equity
(%) tax (%) tax
Derivatives 5.00 537.19 (1.97) 5.00 (537.19) 1.97
Others 5.00 670.76 0.06 5.00 (670.76) (0.06)
2019-20
Impact on
equity price profit before Equity equity price profit before Equity
(%) tax (%) tax
Derivatives 5.00 (103.10) (1.32) 5.00 103 1.32
Others 5.00 512.59 0.06 5.00 (512.59) (0.06)

56.9. Market Risk: (Continued)
Index price risk:

Index price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
the level of equity indices.
2020-21
Impact on
index price profit before Equity index price profit before Equity
(%) tax (%) tax
Derivatives 5.00 11.68 - 5.00 (11.68) -
Others 5.00 (50.89) - 5.00 50.89 -
Impact on 2019-20
index price profit before Equity index price profit before Equity
(%) tax (%) tax
Derivatives 5.00 (435.78) - 5.00 435.78 -
Others 5.00 38.37 - 5.00 (38.37) -
Other price risk:

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
the level of market prices other than equity and index prices.
2020-21
Impact on
price (%) profit before Equity price (%) profit before Equity
tax tax
Security receipts of ARC trusts 5.00 91.77 - 5.00 (91.77) -
Units of AIFs and Trusts 5.00 3.17 - 5.00 (3.17) -
Others 5.00 471.74 31.71 5.00 (471.74) (31.71)
2019-20
Impact on
price (%) profit before Equity price (%) profit before Equity
tax tax
Security receipts of ARC trusts 5.00 23.93 - 5.00 (23.93) -
Units of AIFs and Trusts 5.00 25.22 - 5.00 (25.22) -
Others 5.00 397.06 132.70 5.00 (397.06) (132.70)

57. Impact of Covid
The COVID-19 pandemic outbreak across the world including India has resulted in most countries announcing lockdowns and
quarantine measures that have sharply stalled economic activities across the world. The Indian Government too has imposed
lockdowns starting from 24 March 2020. Subsequently, the national lockdown was lifted by the government for certain activities
in a phased manner outside specified containment zones, but regional lockdowns/restrictions continued to be implemented in
areas with a significant number of COVID-19 cases. The Indian economy is impacted and would continue to be impacted by this
pandemic and the resultant lockdown, due to the contraction in industrial and services output across small and large businesses.
The impact of the COVID-19 pandemic , including the current “second wave” on Group’s financial statements, including credit
quality and provisions, gain/loss on fair value changes, investment, remains uncertain and dependent on the current and further
spread of COVID-19, steps taken by the government, RBI and other regulators to mitigate the economic impact and also the
time it takes for economic activities to resume and reach the normal levels. Further, the Group has assessed the impact of the
COVID-19 pandemic on its liquidity and ability to repay its obligations as and when they are due. Management has considered
various financial support from banks and other fundraising opportunities in determining the Group liquidity position over the
next 12 months. Based on the foregoing and necessary stress tests considering various scenarios, management believes that the
Group will be able to pay its obligations as and when these become due in the foreseeable future. In assessing the recoverability
of loans, receivables, deferred tax assets and investments, the Group has considered internal and external sources of information,
including credit reports, economic forecasts and industry reports up to the date of approval of these financial statements. Since
the situation continue to evolve, its effect on the operations of the Group may be different from that estimated as at the date
of approval of these financial statements. The Group will continue to closely monitor material changes in markets and future
economic conditions.
58. Composition of the Group

Note Country of Proportion Proportion
Incorporation of ownership of ownership
Sr. Name of the Entity
interest as at interest as at
31-Mar-2021 31-Mar-2020
Subsidiaries
1 ECL Finance Limited - India 100.00% 100.00%
2 Edelcap Securities Limited - India 100.00% 100.00%
3 Edelweiss Asset Management Limited - India 100.00% 100.00%
4 ECap Equities Limited - India 100.00% 100.00%
5 Edelweiss Trusteeship Company Limited - India 100.00% 100.00%
6 Edelweiss Housing Finance Limited - India 100.00% 100.00%
7 Edelweiss Investment Adviser Limited - India 100.00% 100.00%
8 EC Commodity Limited - India 100.00% 100.00%
9 Edel Land Limited - India 100.00% 100.00%
10 Edel Investments Limited - India 100.00% 100.00%
11 Edelweiss Rural & Corporate Services Limited - India 100.00% 100.00%
12 Edelweiss Comtrade Limited i India 100.00% 100.00%
13 Edel Finance Company Limited - India 100.00% 100.00%
14 Edelweiss Retail Finance Limited - India 100.00% 100.00%
15 Edelweiss Multi Strategy Fund Advisors LLP k India 100.00% 100.00%
16 Edelweiss Resolution Advisors LLP - India 100.00% 100.00%
17 Edelweiss General Insurance Company Limited - India 100.00% 100.00%
18 Edelweiss Securities and Investments Private Limited - India 100.00% 100.00%
19 EC International Limited - Mauritius 100.00% 100.00%
20 EAAA LLC - Mauritius 100.00% 100.00%
21 Edelweiss Capital (Singapore) Pte. Limited g Singapore - 100.00%

58. Composition of the Group (Continued)

Note Country of Proportion Proportion
Sr. Name of the Entity
31-Mar-2021 31-Mar-2020
Subsidiaries (Continued)
22 Edelweiss Alternative Asset Advisors Pte. Limited - Singapore 100.00% 100.00%
23 Edelweiss International (Singapore) Pte. Limited - Singapore 100.00% 100.00%
24 Aster Commodities DMCC h United Arab 100.00% 100.00%
Emirates
25 Edelgive Foundation - India 100.00% 100.00%
26 Edelweiss Alternative Asset Advisors Limited - India 99.05% 95.00%
27 Edelweiss Gallagher Insurance Brokers Limited - India 70.00% 74.00%
28 Edelweiss Private Equity Tech Fund - India 95.60% 88.90%
29 Edelweiss Value and Growth Fund - India 70.05% 88.90%
30 Edelweiss Asset Reconstruction Company Limited - India 59.84% 59.84%
31 EW Special Opportunities Advisors LLC j Mauritius 67.00% 67.00%
32 Edelweiss Tokio Life Insurance Company Limited - India 51.00% 51.00%
33 Allium Finance Private Limited - India 70.00% 70.00%
34 Edelweiss Securities Limited m India - 100.00%
35 Edelweiss Finance & Investments Limited m India - 100.00%
36 Edelweiss Broking Limited m India - 100.00%
37 Edelweiss Custodial Services Limited m India - 100.00%
38 Edelweiss Securities (IFSC) Limited m India - 100.00%
39 ESL Securities Limited m India - 100.00%
40 Edelweiss Investment Advisors Private Limited m Singapore - 100.00%
41 Edelweiss Financial Services (UK) Limited m United Kingdom - 100.00%
42 Edelweiss Financial Services Inc. m United States of - 100.00%
America
43 Edelweiss Securities (Hong Kong) Private Limited m Hong Kong - 100.00%
44 Edelweiss Global Wealth Management Limited l India 100.00% 100.00%
45 Edelweiss Finvest Limited a India - 100.00%
46 EC Global Limited b Mauritius - 100.00%
47 Lichen Metals Private Limited c India - 100.00%
48 Edelweiss Capital Services Limited d India 51.00% -
49 India Credit Investments Fund - II e India 100.00% -
Associate
1 Edelweiss Securities Limited m India 38.53% -
Group stake in trusts

Country of Proportion Proportion
Trust Name
interest as at interest as at 31-
31-Mar-2021 Mar-2020
1 EARC SAF - 2 Trust - India 100.00% 100.00%
2 EARC Trust - SC 6 - India 100.00% 100.00%


Group stake in trusts (Continued)
Trust Name
31-Mar-2021 31-Mar-2020


Group stake in trusts (Continued)
Trust Name
31-Mar-2021 31-Mar-2020
65 EARC Trust SC 406 - India 100.00% -
Notes:
a) With effect from 01 April 2019, Edelweiss Finvest Limited have been merged with Edel Finance Company Limited, a
subsidiary of the Group, pursuant to the scheme of arrangement approved by National Company Law Tribunal vide its
Order dated 22 February 2021.
b) With effect from 01 September 2020, EC Global Limited have been merged with EC International Limited , a subsidiary of
the Group, pursuant to the scheme of arrangement approved by National Company Law Tribunal.
c) With effect from 30 March 2021, Lichen Metals Private Limited is sold and ceased to become the subsidiary of the Group
and has not been consolidated from the said date.
d) On 12 February 2021, a new subsidiary namely Edelweiss Capital Services Limited is incorporated under Group. Edelweiss
Financial Services Limited holds 51% stake of Edelweiss Capital Services Limited and has been consolidated from the said
date.

Notes: (Continued)
e) With effect from 31 March 2021, Ecap Equities Limited and Edelweiss Rural & Corporate Services Limited, subsidiaries of
the Group has invested in the Fund namely, India Credit Investments Fund - II, whereby 100% stake is owned by the Group.
Accordingly, India Credit Investments Fund - II is fully controlled by the Group and accordingly has been consolidated from
the said date.
f) With effect from 01 September 2020, Edel Land Limited a subsidiary of the Group has acquired 100% stake in Everest
Securities & Finance Limited. Subsequently, with effect from 26 March 2021 Everest Securities & Finance Limited got
merged into Edel Land Limited. Accordingly same has been consolidated from said dated.
g) With effect from 23 December 2020 Edelweiss Capital (Singapore) Pte. Limited, subsidiary of the Group has windup and
accordingly consolidated till the said date.
h) Aster Commodities DMCC, a subsidiary of the Group has changed its basis of accounting for periods subsequent to March
30, 2021 from the going concern basis to a liquidation basis.
i) Edelweiss Comtrade Limited, a subsidiary of the Group has ceased its operation and does not have any business activity
planned for future. Accordingly the financial statements for the year have been prepared on a non-going concern basis.
j) EW Special Opportunities Advisors LLC, a subsidiary of the Group has changed its basis of accounting for periods subsequent
to 31 December 2020 from the going concern basis to a liquidation basis.
k) Edelweiss Multi Strategy Fund Advisors LLP, a subsidiary of the Group has ceased its operation and does not have any
business activity planned for future. Accordingly the Financial Statements for the year have been prepared on a non-going
concern basis.
l) Edelweiss Financial Services Limited holds 100% of share capital of Edelweiss Global Wealth Management Limited (EGWML)
before considering the effect of compulsory convertible debentures (CCD) issued by EGWML.
m) Refer note 67

59 Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiary
Sr. Name of the Entity Net Assets i.e. Total Assets Share in Profit or Loss Share in Other Share in Total
No. minus Total Liabilities Comprehensive Income Comprehensive Income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (` in Million) consolidated (` in Million) consolidated (` in Million) consolidated (` in Million)
net assets profit or loss other total
comprehensive comprehensive

income income
Parent
Edelweiss Financial Services Limited 53.74% 41,259.86 282.06% 7,162.08 (53.09)% 9.54 284.45% 7,171.63
Subsidiaries
Indian
1 Edelweiss Securities Limited* - - 21.08% 535.30 (333.99)% 60.04 23.61% 595.34
2 Edelweiss Finance & Investments Limited* - - 4.75% 120.53 (14.96)% 2.69 4.89% 123.22
3 ECL Finance Limited 32.33% 24,823.27 0.88% 22.34 (96.46)% 17.34 1.57% 39.68
4 Edelweiss Global Wealth Management Limited* - - (7.39)% (187.62) 1.59% (0.29) (7.45)% (187.91)
5 Edelweiss Gallagher Insurance Brokers Limited 1.70% 1,304.34 5.74% 145.69 (2.47)% 0.44 5.80% 146.13
6 Edelcap Securities Limited 0.68% 519.40 (22.71)% (576.73) 33.01% (5.93) (23.11)% (582.66)
7 Edelweiss Asset Management Limited 2.10% 1,611.99 1.88% 47.81 (11.96)% 2.15 1.98% 49.96
8 ECap Equities Limited 1.45% 1,113.47 (158.79)% (4,031.88) 4.35% (0.78) (159.95)% (4,032.66)
9 Edelweiss Broking Limited* - - 1.24% 31.44 (43.93)% 7.90 1.56% 39.34
10 Edelweiss Trusteeship Company Limited 0.01% 4.93 0.01% 0.16 0.06% (0.01) 0.01% 0.15
11 Edelweiss Housing Finance Limited 9.94% 7,627.99 1.47% 37.34 12.28% (2.21) 1.39% 35.13
12 Edelweiss Investment Adviser Limited (10.33)% (7,933.17) (207.97)% (5,280.88) (0.17)% 0.03 (209.46)% (5,280.85)
13 EC Commodity Limited (0.20)% (153.09) (3.38)% (85.79) (0.03)% 0.01 (3.40)% (85.78)
14 Edel Land Limited 0.10% 76.18 (10.06)% (255.38) (1.57)% 0.28 (10.12)% (255.10)
15 Edelweiss Custodial Services Limited* - - 38.54% 978.58 3.00% (0.54) 38.79% 978.05
16 Edel Investments Limited 3.39% 2,599.35 0.24% 6.19 1.12% (0.20) 0.24% 5.99
17 Edelweiss Rural & Corporate Services Limited 5.91% 4,538.25 (361.34)% (9,175.15) (63.49)% 11.41 (363.46)% (9,163.74)
18 Edelweiss Comtrade Limited 0.02% 16.25 (0.59)% (15.06) 13.77% (2.48) (0.70)% (17.54)
19 Edel Finance Company Limited 16.10% 12,359.86 (48.89)% (1,241.43) 2.28% (0.41) (49.26)% (1,241.84)
20 Edelweiss Retail Finance Limited 6.38% 4,899.26 10.58% 268.54 (1.81)% 0.32 10.66% 268.86
21 Edelweiss Multi Strategy Fund Advisors LLP 0.01% 7.75 (0.63)% (16.09) 0.00% 0.00 (0.64)% (16.09)
22 Edelweiss Resolution Advisor LLP 0.00% 0.72 0.20% 4.96 0.00% 0.00 0.20% 4.96
23 Edelweiss General Insurance Company Limited 1.55% 1,190.95 (35.85)% (910.34) 7.01% (1.26) (36.16)% (911.60)
24 Edelweiss Securities (IFSC) Limited* - - (0.54)% (13.66) 25.38% (4.56) (0.72)% (18.23)
25 Edelweiss Securities and Investments Private Limited 1.03% 789.15 1.13% 28.82 0.00% 0.00 1.14% 28.82
26 Edelweiss Alternative Asset Advisors Limited 1.32% 1,011.56 6.06% 153.94 (28.06)% 5.04 6.31% 158.99
27 Edelgive Foundation 0.31% 234.96 3.84% 97.39 (0.01)% 0.00 3.86% 97.39
28 Lichen Metals Private Limited 0.00% - (3.71)% (94.11) 0.00% 0.00 (3.73)% (94.11)
29 Edelweiss Private Equity Tech Fund 0.80% 615.32 (0.70)% (17.69) 0.00% 0.00 (0.70)% (17.69)
30 Edelweiss Value and Growth Fund 1.97% 1,511.79 0.03% 0.73 0.00% 0.00 0.03% 0.73
59 Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiary (Continued)
Sr. Name of the Entity Net Assets i.e. Total Assets Share in Profit or Loss Share in Other Share in Total
No. minus Total Liabilities Comprehensive Income Comprehensive Income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (` in Million) consolidated (` in Million) consolidated (` in Million) consolidated (` in Million)
net assets profit or loss other total
comprehensive comprehensive
income income
Subsidiaries (Continued)
Indian (Continued)
31 Edelweiss Asset Reconstruction Company Limited 28.94% 22,219.80 73.11% 1,856.31 2.99% (0.54) 73.61% 1,855.78
32 Edelweiss Tokio Life Insurance Company Limited 6.98% 5,360.46 (81.42)% (2,067.38) 336.94% (60.57) (84.40)% (2,127.95)
33 Allium Finance Private Limited 1.33% 1,018.77 2.64% 67.07 0.14% (0.03) 2.66% 67.05
34 ESL Securities Limited* - - (2.02)% (51.29) (0.75)% 0.14 (2.03)% (51.16)
35 Edelweiss Capital Services Limited 0.66% 503.78 (0.63)% (16.02) 1.09% (0.20) (0.64)% (16.22)
36 India Credit Investment Fund – II 4.14% 3,179.48 0.07% 1.75 0.00% 0.00 0.07% 1.75
Foreign
37 EC International Limited (0.13)% (101.00) 10.48% 266.03 116.55% (20.95) 9.72% 245.08
38 EAAA LLC 0.03% 24.55 (1.03)% (26.05) 7.40% (1.33) (1.09)% (27.38)
39 EW Special Opportunities Advisors LLC 0.00% 0.51 (0.11)% (2.76) 0.58% (0.10) (0.11)% (2.87)
40 Edelweiss Capital (Singapore) Pte. Limited 0.00% 0.00 2.11% 53.50 (14.07)% 2.53 2.22% 56.03
41 Edelweiss Alternative Asset Advisors Pte. Limited 0.62% 475.57 0.39% 9.97 (75.15)% 13.51 0.93% 23.48
42 Edelweiss International (Singapore) Pte. Limited 2.45% 1,877.97 13.64% 346.35 263.97% (47.45) 11.86% 298.90
43 Edelweiss Investment Advisors Private Limited* 0.00% 0.00 0.34% 8.68 (9.78)% 1.76 0.41% 10.44
44 Aster Commodities DMCC 0.26% 197.20 (1.34)% (34.03) 85.75% (15.41) (1.96)% (49.45)
45 Edelweiss Financial Services (UK) Limited* - - 0.05% 1.31 (9.95)% 1.79 0.12% 3.10
46 Edelweiss Financial Services Inc.* - - 2.27% 57.75 37.24% (6.70) 2.03% 51.06
47 Edelweiss Securities (Hong Kong) Private Limited* - - 0.29% 7.30 8.57% (1.54) 0.23% 5.76
48 Controlled Trusts (1.01)% (778.94) 7.11% 180.64 0.00% 0.00 7.16% 180.64
Non-Controlling Interests 14.33% 10,998.36 99.29% 2,521.23 635.07% (114.16) (1.18)% (29.85)
Adjustments arising out of consolidation (88.90)% (68,232.40) 457.83% 11,625.16 (728.12)% 130.91 562.94% 14,192.97
Associate (Investment as per the equity method)
- Indian
Edelweiss Securities Limited (w.e.f. 27 March 2021) (0.01)% (4.50) (0.25)% (6.35) (10.30)% 1.85 (0.18)% (4.50)
Total 100.00% 76,769.95 100.00% 2,539.20 100.00% (17.97) 100.00% 2,521.23

0.00 indicated amount less than ` 0.01 million
* Refer note 67

60. Key disclosures related to life insurance business
a Life insurance and Investment Contract Liability

With DPF Linked Others Total gross With DPF Linked Others Total gross
Business liabilities Business liabilities
Insurance Contract Liability
Life 7,257.89 12,594.42 20,917.85 40,770.16 4,894.47 6,692.92 16,391.52 27,978.91
Health - - 53.61 53.61 - - 46.88 46.88
Annuity - - 383.12 383.12 - - 365.63 365.63
Pension 1,047.07 349.59 - 1,396.66 851.73 271.47 - 1,123.20
Total 8,304.96 12,944.01 21,354.58 42,603.55 5,746.20 6,964.39 16,804.03 29,514.62
Investment Contract Liability

Life - 786.35 440.57 1,226.92 - 652.88 322.09 974.97
Health - - - - - - - -
Annuity - - - - - - - -
Pension - - - - - - - -
Total - 786.35 440.57 1,226.92 - 652.88 322.09 974.97
b Movement of life insurance contract liabilities

With DPF Linked Others Total With DPF Linked Others Total
Business Business
Gross Liability at the 5,746.20 6,964.39 16,804.03 29,514.62 3,869.05 6,051.42 13,333.65 23,254.12
beginning of the year
Add/(Less)
Premium 3,650.46 3,144.03 5,446.32 12,240.81 2,327.17 2,790.09 5,180.95 10,298.21
Unwinding of the discount / 774.79 3,796.94 1,111.35 5,683.08 590.87 (1,237.80) 879.12 232.19
Interest credited
Changes in valuation for (1,631.68) (445.68) (1,379.61) (3,456.97) (887.59) (394.79) (1,333.61) (2,615.99)
expected future benefits
Insurance liabilities released (377.29) (564.07) (879.68) (1,821.04) (256.47) (268.58) (1,326.09) (1,851.14)
Undistributed Participating 13.49 - - 13.49 11.36 - - 11.36
Policyholders surplus (UPPS)
Others - - - - - - - -
Change in other Liabilities 128.97 48.40 252.20 429.57 91.81 24.05 70.01 185.87
Gross Liability at the end of 8,304.94 12,944.01 21,354.61 42,603.56 5,746.20 6,964.39 16,804.03 29,514.62
the year

60. Key disclosures related to life insurance business (Continued)
c. Investment contract liabilities without DPF are stated at fair value.

The investment contracts measured at fair value are mainly unit linked in structure and the fair value of the liability is equal to
the unit reserve plus additional non-unit reserves, if required, on a fair value basis. These contracts are classified as Level 1 in
the fair value hierarchy when the unit reserve is calculated as the publicly quoted unit price multiplied by the number of units
in issue and any non-unit reserve is insignificant. Where the unit price is not publicly-available these contracts are classified
as Level 2 in the fair value hierarchy provided the additional non-unit reserve is an insignificant input to the valuation. Where
the non-unit reserve is a significant input in the valuation, the contracts are classified at Level 3 in the fair value hierarchy. The
Group takes credit risk into account in assessing the fair value of the liabilities.
Investment contract liabilities without DPF are further analysed as follows:

Particulars 31 March 2021 31March 2020
Linked Others Total Linked Others Total
Business Business
At the beginning of the 652.88 322.09 974.97 574.82 261.27 836.09
year
Additions
Premium 22.67 218.91 241.58 141.58 45.05 186.63
Interest and Bonus 157.37 20.16 177.53 7.19 21.80 28.99
credited to policyholders
Others 0.17 1.35 1.52 0.13 0.06 0.19
Deductions - -
Withdrawals / Claims (35.28) (120.49) (155.77) (61.85) (4.60) (66.45)
Fee Income and Other (11.44) (1.46) (12.90) (8.99) (1.49) (10.48)
Expenses
At the end of the year 786.37 440.56 1,226.93 652.88 322.09 974.97
Change in insurance contract liabilities

Particulars 31 March 2021 31March 2020
With DPF Linked Others Total With DPF Linked Others Total
Business Business
a) Policy Liabilities 2,558.76 5,979.61 4,550.58 13,088.95 1,877.15 912.97 3,470.39 6,260.51
(Gross)
b) Amount ceded in - 0.37 (449.32) (448.95) - (0.27) (92.54) (92.81)
reinsurance
c) Amount accepted in - - - - - - - -
reinsurance
Net change in insurance 2,558.76 5,979.98 4,101.26 12,640.00 1,877.15 912.70 3,377.85 6,167.70
contract liabilities

60 Key disclosures related to life insurance business (Continued)

Change in Reinsurance assets
Particulars 31 March 2021 31 March 2020
Opening Reinsurance Assets 2,944.41 2,851.60
Premium 358.33 446.04
Unwinding of the Discount/Interest Credited 176.08 169.70
Change in Valuation for expected future benefits (177.95) (145.23)
Insurance Liabilities released 92.49 (377.69)
Closing Reinsurance Assets 3,393.36 2,944.42
As at 31 March 2021, the Company conducted an impairment review of the reinsurance assets and there is no impairement
loss for the year.
During the year, the Company entered into reinsurance arrangements that resulted in profit of ` 124.64 million for the financial
year 2020-21 (Previous Year ` 54.18 million). This profit has been reflected in the statement of profit or loss.
As at 31 March 2021 and 31 March 2020, there are no impaired reinsurance assets.
d. Key Assumptions
Liabilities for life insurance policies are determined by the Appointed Actuary in accordance with the IRDAI regulations and
relevant actuarial practice standards & guidance notes issued by the Institute of Actuaries of India.
The reserves/ liabilities under non-linked business is calculated using a prospective gross premium method of valuation. The
reserves are established having regard to the assumptions as to future experience, including the interest rate that will be earned
on premiums not yet received and future bonus rates for participating business. Assumptions as to the future bonus rates are
set to be consistent with the interest rate assumptions. For participating policies, the valuation interest rate used is 6.00% (no
change from last year). For non-par policies, the valuation interest rate ranges between 5.58% - 6.75% (no change from last year)
for the first 5 years and 4.00% - 6.00% (no change from last year) thereafter (for annuity, 2% assumed for year greater than 50
years). For one-year individual non-par plan, the valuation interest rate used is 4.00% (not applicable for last year).
The lapse assumptions are based on various factors namely the actual experience, credibility of the experience, pricing
assumptions, trend from actual experience and consistency from past year’s assumptions. For lapsed policies, revival reserves
are maintained (till the policies are within the revival year) assuming 10.00% (previous year 10.00%) of them will get revived.
Mortality assumptions are set with reference to the published IALM (2012-2014) Ultimate Mortality Table. The mortality
assumptions are based on various factors namely the actual experience, credibility of the experience, pricing assumptions,
trend from actual experience and consistency from past year’s assumptions. For annuity product, mortality rates are set with
reference to the Modified Mortality for Annuitants - LIC (a) (1996-98) Ultimate Rates. Assumptions for morbidity and incidence
of accidental death are based on terms available from reinsurers and the standard morbidity rate table CIBT 93 (Critical Illness
Base Table for year 93).
Assumptions for future expenses are considered as per the file & use assumptions (which are derived from long term business
plan of the Company) and these expenses escalated each year by 5.00% p.a. (previous year 5.00%) to allow for inflation. An
additional reserve has been included to allow for the contingency of closure to new business and to cover maintenance expense
overrun.
Commission has been allowed for at the rates specified in the products file and use.
Further it has been ensured that for each policy the reserve is sufficient to pay the surrender value.

d. Key Assumptions (Continued)
For participating products, terminal bonuses are provisioned such that the reserves are at least equal to asset share at product
level.
The provisions have been made for incurred but not reported death claims (IBNR), free look reserve, unearned premium reserve
of the extra premium collected etc.
Free look assumption has been set based on the actual cancellation experience observed by the company for all lines of business,
trend of the experience in the last few years and consistency of the rate in comparison to the past year. The assumption of free
look rate is set at 4% this year (no change from last year).
For riders, both unearned premium and gross premium reserves are calculated and the higher of these two is held as reserve. For
OYRGTL plan (One Year Renewable Group Term Life), the Unearned Premium Reserve is calculated as premium for the unexpired
duration. In addition, the premium deficiency reserve and IBNR is also kept for OYRGTL.
The Company has continued to provision for additional margin for adverse deviation (MAD) to mitigate the risk due to Covid-19
pandemic risk under Actuarial Liability. Further, the Company has kept additional Covid-19 related provision in anticipation of
elevated COVID related claims.
Portfolio assumptions impacting net liabilities Range FY 2021 FY 2020

Mortality rates (as a % of Indian Assured Lives Max 215% (Without MAD)* 215% (Without MAD)*
Mortality (2006-08))**
Min 21% (Without MAD) 20% (Without MAD)
Discount/ interest rates*** Max 7.75% (Without MAD) 7.75% (Without MAD)
Min 5% (Without MAD) 7.00% (Without MAD)
Expense**** Max 9308 (INFL @5%) (without MAD) 8865 (INFL @5%) (without MAD)
18 (INFL @ 5%) (without MAD) 17 (INFL @ 5%) (without MAD)
for micro Insurance plan for micro Insurance plan
Min 276 (INFL @ 5%) (without MAD) 263 (INFL @ 5%) (without MAD)
11 (INFL @ 5%) (without MAD) 11 (INFL @ 5%) (without MAD)
for micro Insurance plan for micro Insurance plan
MAD* Mortality: 10%; additional Mortality: 10%; additional 5%
5% MAD to cater COVID19 MAD to cater COVID19 pandemic
pandemic risk risk
Interest: 75 - 550 bps Interest: 75 - 550 bps
Expenses: 10% Expenses: 10%
* Margin for Adverse Deviation (MAD) is over and above the base rate mentioned above.
** Mortality rates (excluding annuity products) are expressed as % of Indian Assured LivesMortality (2012-14) and for annuity
it is expressed as % of Modified Mortality for Annuitants - LIC (a) (1996-98) Ultimate Rates.
*** Under Unit linked, for unit growth rate (i.e. Investment return) weighted average growth rate of various unit funds is used.
**** The value of future expenses has been derived to allow for all the future maintenance expenses as applicable namely
fixed per policy, renewal premium (0%-2%)/ commission (0%-25%) related, fund (0%-0.25%) related etc. The limits for fixed per
policy expenses are as mentioned above in the table.

e. Sensitivity Analysis
The following analysis is performed for reasonably possible movements in key assumptions with all other assumptions held
constant, showing the impact on gross liabilities.
The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the
impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements
in these assumptions are non–linear. The method used for deriving sensitivity information and significant assumptions made
did not change from the previous period. The sensitivities are same as shared with Regulators during annual reporting.
For Year Ended 31 March 2021
Gross Liability
Sensitivity Parameters Insurance Contracts Investment Contracts
With DPF Linked Others Linked Others
Mortality increased by 10% 8,308.80 12,946.17 22,455.41 786.35 440.57
Mortality decreased by 10% 8,301.09 12,942.63 20,257.58 786.35 440.57
Lapses increased by 10% 8,303.77 12,943.74 21,058.91 786.35 440.57
Lapses decreased by 10% 8,306.17 12,944.31 21,671.76 786.35 440.57
Expenses increased by 10% 8,309.07 12,944.45 21,485.17 786.35 440.57
Expenses decreased by 10% 8,300.84 12,943.67 21,224.21 786.35 440.57
Interest Rate increased by 100 bps 7,640.58 12,854.89 17,475.55 757.41 440.57
Interest Rate decreased by 100 bps 9,110.47 13,038.49 26,404.71 817.78 440.57
Inflation Rate increased by 100 bps 8,307.61 12,944.36 21,476.28 786.35 440.57
Inflation Rate decreased by 100 bps 8,302.53 12,943.85 21,250.38 786.35 440.57
For Year Ended 31 March 2020

Gross Liability
Sensitivity Parameters Insurance Contracts Investment Contracts
With DPF Linked Others Linked Others
Mortality increased by 10% 5,750.39 6,968.23 17,764.85 652.86 322.11
Mortality decreased by 10% 5,742.00 6,962.06 15,863.84 652.86 322.11
Lapses increased by 10% 5,744.83 6,963.97 16,552.07 652.86 322.11
Lapses decreased by 10% 5,747.60 6,964.88 17,075.63 652.86 322.11
Expenses increased by 10% 5,750.63 6,965.38 16,919.17 652.86 322.11
Expenses decreased by 10% 5,741.78 6,963.62 16,689.49 652.86 322.11
Interest Rate increased by 100 bps 5,221.24 6,898.09 13,592.26 635.12 322.11
Interest Rate decreased by 100 bps 6,382.52 7,036.88 21,035.01 672.28 322.11
Inflation Rate increased by 100 bps 5,749.25 6,965.06 16,913.79 652.86 322.11
Inflation Rate decreased by 100 bps 5,743.44 6,964.11 16,710.94 652.86 322.11

e. Sensitivity Analysis (Continued)

Gross premiums on insurance contracts and investment contracts with DPF
Life Insurance 12,240.81 10,298.21
Total Gross Premiums 12,240.81 10,298.21
Premiums ceded to reinsurers on insurance contracts and investment contracts with DPF
Life Insurance (358.33) (446.04)
Total premiums ceded to reinsurers (358.33) (446.04)
Net benefits and claims

a. Gross benefits and claims paid
Life insurance contracts 2,011.29 1,187.26
Investment contracts with DPF - -
Total gross benefits and claims paid 2,011.29 1,187.26
b. Claims ceded to reinsurers
Life insurance contracts (520.94) (373.29)
Investment contracts with DPF - -
Total claims ceded to reinsurers (520.94) (373.29)
Net benefits and claims 1,490.35 813.97
61. Key disclosures related to General Insurance business
Contract Liability for General Insurance business
Premium earned
Gross Premium on insurance contracts

Particular 2020-21 2019-20
Gross written Premium 2,264.46 1,586.05
Change in reserve for unexpired risks (267.73) (476.69)
Gross Earned Premium (a) 1,996.73 1,109.36
Premium ceded to reinsurers on insurance contracts

Particular 2020-21 2019-20
Premium on reinsurance ceded 424.73 268.30
Change in reserve for unexpired risks (50.39) (84.40)
Premium ceded to reinsurers (b) 374.34 183.90
Total Premium Earned (net) (a - b) 1,622.39 925.46

61. Key disclosures related to General Insurance business (Continued)

Change in actuarial liability
Particular 2020-21 2019-20
Gross Claim Paid 1,285.48 686.12
Claims Ceded to reinsurer on Gross Claims Paid (89.32) (52.78)
Net Claims Paid 1,196.16 633.34
Change in Gross Claims Outstanding 149.39 151.51
Change in Cededing to reinsurer on Gross Claims Outstanding (72.89) (9.61)
Net Claims Outstanding 1,272.66 775.24
Change in Gross IBNR 500.52 341.61

Change in Cededing to reinsurer on Gross IBNR (115.56) (55.30)
Net IBNR 384.96 286.31
Change in Gross Premium deficiency Reserve (1.41) (33.00)
Change in Cededing to reinsurer on Premium deficiency Reserve - -
Net Premium deficiency Reserve (1.41) (33.00)
Change in actuarial liability 383.55 253.31
Reinsurance asset
Particular 31-Mar-21 31-Mar-20
Reinsurance on Insurance Contract 370.32 133.37
Gross Insurance contract liabilities 2,946.56 2,030.33
Reinsurance asset relating to Insurance contracts 666.99 428.14
Net Insurance contract liabilities 2,279.57 1,602.19
Gross Insurance contract liabilities 31-Mar-21 31-Mar-20

Gross Claims Outstanding 359.78 210.39
Gross IBNR 1,112.77 612.25
Gross Premium deficiency Reserve 38.36 39.77
Gross Reserve for unexpired risks 1,435.65 1,167.92
Gross Insurance contract liabilities 2,946.56 2,030.33
Reinsurance asset relating to Insurance contracts 31-Mar-21 31-Mar-20

Reinsurance of Claims Outstanding 84.88 11.98
Reinsurance of IBNR 205.38 89.83
Reinsurance of Premium deficiency Reserve - -
Reinsurance of Reserve for unexpired risks 376.73 326.33
Reinsurance of Insurance contract liabilities 666.99 428.14


Net Insurance contract liabilities 2020-21 2019-20
Net Claims Outstanding 274.90 198.41
Net IBNR 907.38 522.42
Net Premium deficiency Reserve 38.36 39.78
Net Reserve for unexpired risks 1,058.92 841.58
Net Insurance contract liabilities 2,279.56 1,602.19
Reconciliation of Claims Outstanding 2020-21 2019-20

Gross Claims Outstanding at the beginning of year 210.39 58.88
Gross Change in claims reserve 149.39 151.51
Gross Claims Outstanding at the end of year 359.78 210.39
Reinsurance of Claims Outstanding at the beginning of year 11.99 2.38

Reinsurance of Change in claims reserve 72.88 9.61
Reinsurance of Claims Outstanding at the end of year 84.87 11.99
Net Claims Outstanding at the beginning of year 198.41 56.50

Net Change in claims reserve 76.49 141.91
Net Claims Outstanding at the end of year 274.90 198.41
Reconciliation of Incurred but not reported (IBNR) 2020-21 2019-20

Gross IBNR Outstanding at the beginning of year 612.25 270.65
Gross Change in IBNR reserve 500.52 341.60
Gross IBNR Outstanding at the end of year 1,112.77 612.25
Reinsurance of IBNR Outstanding at the beginning of year 89.83 34.53

Reinsurance of Change in IBNR reserve 115.56 55.30
Reinsurance of IBNR Outstanding at the end of year 205.39 89.83
Net IBNR Outstanding at the beginning of year 522.42 236.11

Net Change in IBNR reserve 384.96 286.31
Net IBNR Outstanding at the end of year 907.38 522.42
Reconciliation of Premium deficiency Reserve 2020-21 2019-20

Gross Premium deficiency Reserve Outstanding at the beginning of year 39.78 72.78
Gross Change in Premium deficiency reserve (1.42) (33.00)
Gross Premium deficiency Reserve Outstanding at the end of year 38.36 39.78
Reinsurance of Premium deficiency Reserve Outstanding at the beginning of year - -
Reinsurance of Change in Premium deficiency reserve - -

Reinsurance of Premium deficiency Reserve Outstanding at the end of year - -
Net Premium deficiency Reserve Outstanding at the beginning of year 39.78 72.78
Net Change in Premium deficiency reserve (1.41) (33.00)
Net Premium deficiency Reserve Outstanding at the end of year 38.37 39.78


Reserve for unexpired risks 2020-21 2019-20
Gross Reserve for unexpired risks Outstanding at the beginning of year 1,167.91 691.22
Gross Change in Reserve for unexpired risks reserve 267.73 476.69
Gross Reserve for unexpired risks Outstanding at the end of year 1,435.64 1,167.91
Reinsurance of Reserve for unexpired risks Outstanding at the beginning of year 326.33 241.93
Reinsurance of Change in Reserve for unexpired risks reserve 50.39 84.40
Reinsurance of Reserve for unexpired risks Outstanding at the end of year 376.72 326.33
Net Reserve for unexpired risks Outstanding at the beginning of year 841.59 449.29
Net Change in Reserve for unexpired risks reserve 217.33 392.30
Net Reserve for unexpired risks Outstanding at the end of year 1,058.92 841.59
Geographical concentration:
The Company has its operation only in India.
Sensitivity Analysis to key assumptions
The following analysis is performed for reasonably possible movements in ‘Ultimate Loss ratio’ with all other assumptions held
constant, showing the impact on gross and net liabilities, profit before tax and equity.
The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate
the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that
movements in these assumptions are linear. The method used for deriving sensitivity information and significant assumptions
made did not change from the previous period.
2020-21 Change in Increase / Increase / Increase / Increase /

Assumption (Decrease) on (Decrease) on (Decrease) on (Decrease) on
Gross Liability Net Liability Profit Before Tax Equity
Ultimate Loss Ratio 10.00% 294.66 227.96 227.96 -
Ultimate Loss Ratio (10.00)% (294.66) (227.96) (227.96) -
2019-20 Change in Increase / Increase / Increase / Increase /

Assumption (Decrease) on (Decrease) on (Decrease) on (Decrease) on
Gross Liability Net Liability Profit Before Tax Equity
Ultimate Loss Ratio 10.00% 203.03 160.22 160.22 -
Ultimate Loss Ratio (10.00)% (203.03) (160.22) (160.22) -
62. The Board of Directors at their meeting held on 11 June 2021, have recommended a final dividend of ` 0.55 per equity share (on
face value of ` 1 per equity share), subject to the approval of the members at the ensuing Annual General Meeting.
63. The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and the Gratuity Act
and rules there under. The Ministry of Labour and Employment has also released draft rules thereunder on 13 November 2020
and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will evaluate
the rules, assess the impact if any, and account for the same once the rules are notified and become effective.

64. During earlier years and for the year ended 31 March 2021, four subsidiaries of the Group had sold certain financial assets
amounting to ` 61,568.90 million (net of provisions) and ` 10,711.50 million (net of provisions) respectively to various asset
reconstructions company trusts (‘ARC Trusts’) and acquired security receipts (SR) amounting to ` 49,858.40 million and
` 8,801.10 million respectively from these ARC Trusts. Ind AS 109 – ‘Financial Instruments’, prescribed under section 133 of the
Companies Act, 2013, requires substantially all risks and rewards to be transferred for the purpose of de-recognition of such
financial assets from these subsidiaries’ financial statements. Edelweiss Financial Services Limited (EFSL), the holding company,
and Edelweiss Rural and Corporate Services Limited (ERCSL) a subsidiary, had undertaken substantially all risks and rewards in
respect of such financial assets. As a result, these financial assets were de-recognized in subsidiaries’ financial statements.
Based on a review performed by management of these subsidiaries and EFSL, with effect from 01 January 2021, has directly
undertaken substantially all risks and rewards and consequently ERCSL is relieved of its obligations. Further, pursuant to such
review, with effect from 01 January 2021, certain terms and conditions of risk and reward agreements have been amended. The
Board of Directors of subsidiaries, ERCSL and EFSL in their respective meetings held on 04 June 2021, 10 June 2021 and 11 June
2021 have approved such changes to risk and reward agreements. As the risks and rewards continues in the Group, these are
accounted as financial assets in the consolidated financial statements and the consequent expected credit loss are recorded in
the consolidated financial statements.
During the year ended 31 March 2021, the Group re-assessed probability of default, loss given default in respect of these financial
assets and due to various factors viz. operational challenges for exposures to certain sectors, increase in credit and market risks
for certain counter parties relative to such risks at initial recognition, continued impact of COVID-19 factors. Such re-assessments
resulted in recognition of higher amount of loan loss provisioning for the year ended 31 March 2021. Accordingly, the Group has
recorded for the year ended 31 March 2021 an amount of ` 5,051.50 million towards expected credit loss on these financial assets.
65. Pursuant to amendments in risk and reward agreement between the subsidiaries, ERCSL and EFSL (as mentioned in note 64 above),
with effect from 01 January 2021, fees payable on security receipts (ARC Fee) has been agreed to be borne by EFSL, as the risks and
rewards are undertaken by EFSL. Accordingly, an amount of ` 489.30 million towards such expenses has been recorded by the EFSL.
66. Edelweiss Custodial Services Limited (“”ECdSL””), a group company of Edelweiss Financial Services Company (“”EFSL””) challenged
an order, by an investigating agency, marking lien on its clearing account, before the 47th Additional Chief Metropolitan Magistrate
Court, Mumbai. Since the investigation against Anugrah Stock and Broking Pvt. Ltd. (“trading member”), for which ECdSL was a
clearing member, is still under process, the said investigative agency contended that it had no objection to setting aside the lien
order upon ECdSL providing an undertaking to keep sufficient assets unencumbered. ECdSL has since provided undertaking to
keep sufficient assets amounting to ` 4,603.20 million belonging to the Group and associate unencumbered and the said lien
order has been set aside. The matter has been listed for further hearing.
The MCSGF Committee of NSE Clearing Limited (“NCL”) vide its order dated 20 October 2020 has directed ECdSL to adhere to
instructions of National Stock Exchange (“NSE”) / NCL, to appropriately reinstate the securities wherever trading member’s clients
had credit balance, but the securities got liquidated. ECdSL filed an appeal against the impugned order with Securities Appellate
Tribunal (“SAT”). SAT vide its order dated 05 November 2020 has directed ECdSL to give an undertaking to NCL that it will deposit
` 2,120.00 million or other amount as directed by the SAT after disposal of Appeal. ECdSL has since provided the declaration to
NCL. The matter has been listed for further hearing.
Various Arbitration/Writ Petitions have been filed before the Hon’ble Bombay High Court (“Hon’ble Court”) by various end clients
of the trading member and/or his associate. ECdSL has been made party to the same. All the Writ Petitions have been tagged
together and common orders have been passed in all the Writ Petitions. The next date of hearing is yet to be assigned by the
Hon’ble Court.
ECdSL believes that it has acted in accordance with the agreement entered with the trading member and in accordance with
applicable laws and regulations. Accordingly, there is no adjustment required in the financial statements for year ended 31 March
2021.

67. During the year ended 31 March 2021, EFSL sold its controlling stake in the wealth management business (Edelweiss Securities
Limited) to Edelweiss Global Wealth Management Limited, its wholly owned subsidiary, in accordance with the transaction
consummated with PAGAC ECSTACY PTE. LTD (PAG), a private investment firms. Since the Company has sold controlling interest
over the wealth management business, it has accounted for the sale as loss of control with effect from 26 March 2021 under
the requirements of Ind AS 110 – ‘Consolidated Financial Statements’. Accordingly, included in other income is an amount of
` 14,063.50 million for the year ended 31 March 2021 towards realized gain representing difference between consideration
received and net assets derecognized pertaining to the wealth management business (including related net goodwill) and non
controlling interests in other investments that were sold. Further, EFSL’s retained interest in the wealth management business
meets the definition of an associate and has been recorded at fair value at 26 March 2021 under net fair value changes pursuant
to paragraph 25 under Ind AS 110 – ‘Consolidation Financial Statements’.
68. Under the Shareholders’ Agreement dated 05 March 2019, entered between Edelweiss Financial Services Limited (EFSL), CDPQ
Private Equity Asia PTE. Limited (CDPQ) and ECL Finance Limited (together referred as Parties), EFSL had agreed, pursuant to
clause 8.1 & 8.2 to make equity investment of an amount equivalent to the amount of losses on Select real estate/structured
finance Loans (Select Loans) into ECL Finance Limited within six months of the default leading to loss incurred by the ECL Finance
Limited on or before the date of the conversion of the Investor CCDs into Equity Shares. The rationale for this undertaking was to
keep the total equity/net worth of ECL Finance Limited unimpacted on account of impairment in these loan accounts. During the
year ended 31 March 2021, Parties have agreed and concluded that loss event for two of the borrowers in the Select Loans have
crystalized and hence, EFSL has agreed to make good the loss amounting to ` 1,400.10 million incurred by ECL Finance Limited
in earlier years. Accordingly, EFSL has recorded such loss in its profit and loss for the year ended 31 March 2021. The Parties have
agreed that no loss event has been crystalized in respect of other Select Loans amounts mentioned in above said clauses of the
agreement and hence as at 31 March 2021 there is no obligation EFSL has as at 31 March 2021.
69. EC Commodity Limited (ECCL), a wholly owned subsidiary of the Company, has entered into an agreement dated 28 November
2019, pursuant to which upon happening of a contingency whereupon if the investors who have subscribed for a majority in the
Alternative Investment Fund (AIF) to which ECL Finance Limited (ECLF) and Edelweiss Housing Finance Limited (EHFL), subsidiaries
of the Group have sold financial assets does not receive the agreed IRR (IRR) as per the agreement in which case ECCL shall be
required to either arrange for a buyer thereof and/or purchase the assets at IRR.
70. CDPQ Private Equity Asia Pte. Ltd. (CDPQ), holder of cumulative convertible preference shares (CCPS) of Edelweiss Asset
Reconstruction Company Limited (EARC), a subsidiary, had on 15 July 2019 given a put intimation notice to Group entities
viz., Edelweiss Custodial Services Limited (ECSL) and ECL Finance Limited (ECL) in accordance with Option Agreement dated 14
November 2017. The Option Agreement required ECSL and ECLF to buy these CCPS at an agreed fair value. EARC had applied to
Reserve Bank of India (RBI) which gave its no objection on 17 February 2020 in the name of fellow subsidiaries Edelweiss Rural
and Corporate Services and Ecap Equities Limited. As the companies and CDPQ have not completed fair value of the put security
in accordance with the put agreement, CDPQ has not exercised its put option.

71. The Group and its associate has process whereby periodically all long term contract (including derivative contracts) are assessed
for material foreseeable losses. At the year end, the Group and its associate has reviewed and ensured that adequate provisions
as required under any law / accounting standard for material foreseeable losses on such long terms contracts (including derivative
contract) has been made in the books of accounts.
72. Previous year’s figures have been regrouped / reclassified to conform to current year presentation.
The accompanying notes are an integral part of financial statements.



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296 | Standalone Financial Statements

Standalone Financial Statements
for the year ended 31 March 2021

INDEPENDENT AUDITOR’S REPORT
To the Members of Edelweiss Financial Services Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Edelweiss Financial Services Limited (“the Company”), which
comprise the Balance Sheet as at March 31 2021, the Statement of Profit and Loss, including the statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial
statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2021, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under
section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the
Audit of the Standalone Financial Statements’ section of our report. We are independent of the Company in accordance with the
‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to note 52 of the standalone financial statements, which describes the economic and social disruption as a result of
COVID-19 pandemic of the Company’s business and financial metrics including the Company’s estimates of impairment of investments
and other financial assets, which are highly dependent on uncertain future developments. Our opinion is not modified in respect of
this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For
each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the
responsibilities described in the Auditor’s responsibilities for the audit of the standalone financial statements section of our report,
including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone
financial statements.

INDEPENDENT AUDITOR’S REPORT (Continued)
Impairment of investments in subsidiary companies (as described in Note 1.4.1.3 and note 7 of the standalone financial statements)
The Company has investments in various subsidiaries aggregating Our audit procedures included considering the appropriateness
Rs. 43,789.92 million which are not listed or quoted. These of the processes laid down by the management for assessment of
investments are valued at cost and are required to be assessed impairment in the value of investments in subsidiaries combined
for impairment in accordance with Ind AS 36, when any indicators with procedures performed as follows:
of impairment are observed.
• We considered management’s assessment of impairment
In carrying out such impairment assessment, a significant from the management experts wherever considered
judgement of the management is involved in estimating the necessary and assessed whether any impairment indicators
investee company’s “value in use”, in accordance with Ind AS 36. existed for investment in individual subsidiaries.
Estimation of the value in use requires the management to apply
appropriate assumptions with respect to the growth rates for • We traced the net-worth of the individual subsidiaries to
future cash flow projections of the investee company and discount their audited financial statements to assess whether any
rates for determining present value of such cash flows. impairment indicators were present.
In view of the high degree of management’s judgement involved • We assessed information used to determine the key
in estimation of the recoverable amount of investments in assumptions, including growth rates and discount rates.
unlisted subsidiaries and the inherent uncertainty relating to the
• We assessed the disclosures relating to investments in
assumptions supporting such estimates, we considered this area
subsidiaries included in the standalone financial statements
as a key audit matter.
in accordance with the requirements of Ind AS.
IT systems and controls
Financial accounting and reporting processes, especially in the Our audit procedures focused on the IT infrastructure and
financial services sector, are fundamentally reliant on IT systems applications relevant to financial reporting of the Company:
and IT controls to process significant transaction, hence we
identified IT systems and controls as a key audit matter for the • We tested the design and operating effectiveness of the
Company. Company’s IT access controls over the information systems
that are important to financial reporting and various
Automated accounting procedures and IT environment controls, interfaces, configuration and other identified application
which include IT governance, general IT controls over program controls.
development and changes, access to programs and data and IT
operations, are required to be designed and to operate effectively • We tested IT general controls (logical access, changes
to ensure reliable financial reporting. management and aspects of IT operational controls).
This included testing requests for access to systems were
reviewed and authorized.
• We tested the Company’s periodic review of access rights.

We also tested requests of changes to systems for approval
and authorization.
• In addition to the above, we tested the design and operating

effectiveness of certain automated controls that were
considered as key internal controls.
• We tested the design and operating effectiveness of

compensating controls in case deficiencies were identified
and, where necessary, extended the scope of our substantive
audit procedures.

Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in
the Board report, but does not include the standalone financial statements and our auditor’s report thereon, which we obtained prior
to the date of this auditors report, and the Annual report, which is expected to be made available to us after that date.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing
so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance.
Responsibilities of Management for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements for the financial year ended March 31, 2021 and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3
and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash
Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section
133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of the email confirmation received from the directors as on March 31, 2021 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section
164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements
and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Company
to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations
given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements – (Refer Note 40 (a) and (b) to the standalone financial statements);
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts – (Refer Note 54 to the standalone
financial statements);
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company

per Shrawan Jalan

Partner
UDIN: 21102102AAAAKZ4950

Date: June 11, 2021

Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and
regulatory requirements” of our report of even date
Re: Edelweiss Financial Services Limited (‘the Company’)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management and based upon the audit procedures performed,
the title deeds of immovable properties included in property, plant and equipment are held in the name of the company.
(ii) The Company’s business does not involve inventories and, accordingly, the requirements under paragraph 3(ii) of the Order are
not applicable to the Company.
(iii) According to the information and explanations given to us and based upon the audit procedures performed, the Company has
not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the
register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of
the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given by the management, provisions of section 185 and 186
of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans
and advances given, investments made and, guarantees, and securities given have been complied with by the company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance
of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) To the best of our knowledge and as explained, the Company is not in the business of sale of any goods. Therefore, in our opinion,
the provisions of clause 3(vi) of the Order are not applicable to the Company.
(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, goods and service tax, cess
and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been
a slight delay in a few cases. The provisions relating to duty of custom, duty of excise, value added tax and sales tax are not
applicable to the Company.
(b) According to the information and explanations given to us and based upon the audit procedures performed, no undisputed
amounts payable in respect of provident fund, employees’ state insurance, income-tax, goods and service tax, cess and
other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became
payable. The provisions relating to duty of custom, duty of excise, value added tax and sales tax are not applicable to the
Company.

regulatory requirements” of our report of even date (Continued)
(c) According to the information and explanations given to us and based upon the audit procedures performed, the dues of
income-tax, goods and service tax, and cess on account of any dispute, are given below. The provisions relating to duty of
custom, duty of excise, value added tax and sales tax are not applicable to the Company.
Name of the statute Nature of Amount Period to which the Forum where the dispute is pending
the dues (Rs. In amount relates
million)
Income Tax Act, 1961 Income Tax 3.23 AY 2001-02 High Court
Income Tax Act, 1961 Income Tax 45.30 AY 2018-19 Commissioner of Income Tax (Appeals)
Service Tax Service Tax 414.60 2008-09 to 2011-12 CESTAT, Mumbai
Service Tax Service Tax 119.75 2009-10 up to Jun 2012 CESTAT, Mumbai
Service Tax Service Tax 979.56 October 2010 to March 2015 CESTAT, Mumbai
(viii) In our opinion and according to the information and explanations given by the management and based upon the audit procedures
performed, the Company has not defaulted in repayment of loans or borrowing to a financial institution and banks, government
or dues to debenture holders.
(ix) In our opinion and according to the information and explanations given by the management, the Company has utilized the monies
raised by way of debt instruments for the purposes for which they were raised.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the information and explanations given to us by the Management, we have
neither come across any instances of material fraud by the Company or on the Company by the officers and employees, noticed
or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given by the management and based upon the audit procedures performed, the
Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V of the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to
the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management and based upon the audit procedures performed,
transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and
the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given by the management. the Company has complied with provisions of section
42 of the Companies Act, 2013 in respect of the private placement of Non convertible debentures during the year. According to
the information and explanations given by the management, we report that the amounts raised, have been used for the purposes
for which the funds were raised, though idle/surplus funds which were not required for immediate utilization were gainfully
invested in liquid assets payable on demand.

regulatory requirements” of our report of even date (Continued)
(xv) According to the information and explanations given by the management and based upon the audit procedures performed, the
Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section
192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us and based upon the audit procedures performed, the provisions of
section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

per Shrawan Jalan

Partner

Date: June 11, 2021

Annexure 2 to the Independent Auditor’s Report of even date on the Standalone
Financial Statements of Edelweiss Financial Services Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls with reference to standalone financial statements of Edelweiss Financial Services Limited
(“the Company”) as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal control
over financial reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India
(“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to these standalone financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls, both issued by ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls with reference to these standalone financial statements was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference
to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to
standalone financial statement included obtaining an understanding of internal financial controls with reference to these standalone
financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls with reference to these standalone financial statements.
Meaning of Internal Financial Controls With Reference to these Standalone Financial Statements
A Company’s internal financial controls with reference to standalone financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A Company’s internal financial controls with reference to standalone financial statements
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
Company’s assets that could have a material effect on the financial statements.

Annexure 2 to the Independent Auditor’s Report of even date on the Standalone
Financial Statements of Edelweiss Financial Services Limited date (Continued)
Inherent Limitations of Internal Financial Controls With Reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to these standalone financial statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to
future periods are subject to the risk that the internal financial control with reference to standalone financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone financial
statements and such internal financial controls with reference to standalone financial statements were operating effectively as at
March 31, 2021, based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by ICAI.

per Shrawan Jalan

Partner

Date: June 11, 2021

Balance Sheet as at March 31, 2021
As at As at
(Currency:Indian rupees in million) Note
March 31, 2021 March 31, 2020
I. ASSETS
(1) Financial assets
(a) Cash and cash equivalents 2 1,481.81 13.66
(b) Bank balances other than cash and cash equivalents 2A 8.19 9.55
(c) Trade receivables 5 191.00 316.80
(d) Loans 6 12,472.43 6.73
(e) Investments 7 43,817.32 34,672.87
(f) Other financial assets 8 629.35 695.42
58,600.10 35,715.03
(2) Non-financial assets
(a) Current tax assets (net) 9 688.06 618.59
(b) Deferred tax assets (net) 10 & 32 378.08 291.13
(c) Property, Plant and Equipment 11 5.99 8.36
(d) Intangible assets under development - 9.16
(e) Other Intangible assets 11 1.19 16.83
(f) Other non- financial assets 12 135.88 133.78
1,209.20 1,077.85
TOTAL ASSETS 59,809.30 36,792.88
II. LIABILITIES AND EQUITY
LIABILITIES
(1) Financial liabilities
(a) Derivative financial instruments 3&4 - -
(b) Trade payables
(i) total outstanding dues of micro enterprises and 13&41 - 0.90
small enterprises
(ii) total outstanding dues of creditors other than micro 13 2,354.43 52.45
enterprises and small enterprises
(c) Debt securities 14 7,288.95 734.12
(d) Borrowings other than debt securities 15 1,091.16 732.51
(e) Other financial liabilities 16 6,841.48 577.09
17,576.02 2,097.07
(2) Non-financial liabilities
(a) Current tax liabilities (net) 17 7.26 69.84
(b) Provisions 18 845.81 9.08
(c) Other non-financial liabilities 19 120.33 71.19
973.40 150.11
EQUITY
(a) Equity share capital 20 890.90 889.51
(b) Other equity 21 40,368.98 33,656.19
41,259.88 34,545.70
TOTAL LIABILITIES AND EQUITY 59,809.30 36,792.88
The accompanying notes are an integral part of financial statements 1 to 62
As per our report of even date attached.


Mumbai June 11, 2021 Mumbai June 11, 2021

Statement of Profit and Loss for year ended March 31, 2021

(Currency:Indian rupees in million) Note
March 31, 2021 March 31, 2020
Revenue from operations
Interest income 22 834.96 121.16
Dividend income 23 1,365.31 694.72
Fee and commission income 24 991.19 959.81
Other operating income 25 244.60 437.57
Total Revenue from operations 3,436.06 2,213.26
Other income 26 13,782.67 242.14
Total Revenue 17,218.73 2,455.40
Expenses
Finance costs 27 973.34 323.11
Net loss / (gain) on fair value changes 28 4,422.85 (134.66)
Impairment on financial instruments 29 1,486.98 18.73
Employee benefits expense 30 1,912.18 797.67
Depreciation, amortisation and impairment 11 14.04 32.16
Other expenses 31 1,470.15 622.92
Total expenses 10,279.54 1,659.93
Tax expenses 32
Current tax (135.98) 1.90
Deferred tax (net) (86.95) (32.22)
Profit for the year 7,162.12 825.79
Other Comprehensive Income

Items that will not be reclassified to profit or loss
Remeasurement gain / (loss) on defined benefit plans 9.54 (0.47)
Total 9.54 (0.47)
Total Comprehensive Income 7,171.66 825.32
Earnings Per Share (₹) (Face Value of ₹ 1/- each) 35

(1) Basic 8.05 0.93
(2) Diluted 8.01 0.92
The accompanying notes are an integral part of financial statements 1 to 62




Cash Flow Statement for the year ended March 31, 2021

(Currency:Indian rupees in million)
March 31, 2021 March 31, 2020
A Cash flow from operating activities
Adjustments for :
Depreciation and amortisation expenses 14.04 32.16
Fair value change in investments (3.45) 3.03
Fair value change in provisions 4,426.30 -
Profit on sale of investments (net) (13,714.85) (156.58)
Impairment / (reversal) on financial instruments 1,486.98 18.73
Dividend on investments (1,365.31) (694.72)
(Profit)/loss on sale of property, plant and equipment 9.16 (1.44)
Interest income (834.96) (116.93)
ESOP and SAR cost 84.68 99.65
Finance costs 973.34 323.11
Operating cash flow before working capital changes (1,984.88) 302.48
Add/(Less): Adjustments for working capital changes
Decrease /(Increase) in trade receivables 47.28 192.14
Decrease/(Increase) in derivative financial instruments - (2.48)
(Decrease)/increase in in trade payables 900.99 (37.31)
Decrease /(Increase) in other financial assets 316.52 71.68
Decrease /(Increase) in other non-financial assets 7.34 (28.97)
Decrease /(Increase) in other bank balances 1.36 50.42
(Decrease)/increase in provisions and other financial liabilities 1,832.60 (27.08)
(Decrease)/increase in other non-financial liabilities 49.14 49.55
Cash generated from /(used in) operations 1,170.35 570.43
Income taxes paid/(refund) during the year 3.93 (170.71)
Net cash generated from / (used in ) operating activities - A 1,174.28 399.72
B Cash flow from investing activities
Purchase of property, plant and equipment (3.93) (11.70)
Sale of property, plant and equipment 7.90 2.56
Purchase of investments (16,618.52) (1,558.22)
Sale of investments 21,186.33 431.42
Dividend on investments 1,365.31 694.72
Loan (given) / Repayment of loans ( Refer note 1 below) (12,467.93) 2,390.67
Interest received 834.96 258.21
Net cash generated from / (used in) investing activities - B (5,695.88) 2,207.66
C Cash flow from financing activities
Proceeds from issuance of Share capital (including securities premium) 49.61 79.92
Repayment of non convertible debentures (12,734.12) -
Proceeds from debt securities 19,230.83 734.12
Proceeds from/(repayment of) borrowing (Refer note 1 below) 358.65 (2,928.12)
Dividend paid - (266.51)
Finance costs (915.22) (323.11)
Net cash generated from / (used in) financing activities - C 5,989.75 (2,703.70)
Net (decrease) / increase in cash and cash equivalents (A+B+C) 1,468.15 (96.32)
Cash and cash equivalents as at the beginning of the year 13.66 109.98
Cash and cash equivalents as at the end of the year 1,481.81 13.66

Cash Flow Statement for the year ended March 31, 2021 (Continued)
Notes:
1 Cash receipts and payments for transaction with group companies in which the turnover is quick, the amounts are large, and
the maturities are short are presented on net basis in accordance with Ind AS-7 Statement of Cash Flows.
2 Cash Flow Statement has been prepared under the indirect method as set out in Ind AS 7 prescribed under the Companies Act
(Indian Accounting Standard) Rules, 2015 under the Companies Act, 2013.


Cash Flow Disclosure

Change in Liabilities arising from financing activities

As at Cash Flows Changes in Others* As at
Particulars
April 01, 2020 Fair value March 31, 2021
Debt Securities 734.12 6,496.71 - 58.12 7,288.95

Borrowings other than Debt Securities 732.51 358.65 - - 1,091.16
1,466.63 6,855.36 - 58.12 8,380.11
As at Cash Flows Changes in Others* As at

Particulars
April 01, 2019 Fair value March 31, 2020
Debt Securities - 733.92 - 0.20 734.12

Borrowings other than Debt Securities 3,660.63 (3,251.03) - 322.91 732.51
3,660.63 (2,517.11) - 323.11 1,466.63

*Other column includes the effect of interest accrued during the period.

Statement of Changes in Equity for the year ended March 31, 2021
A. Equity Share Capital

Particulars Amount
As at April 01, 2019 887.77
As at March 31, 2020 889.51

As at March 31, 2021 890.90
Note :
1. Edelweiss Employees' Welfare Trust and Edelweiss Employees' Incentive and Welfare Trust are extension of Company's financial statements, these trusts are
holding 4,48,96,780 number of equity shares as on March 31, 2021 amounting to ₹ 44.90 million (as at March 31, 2020: ₹ 44.90 million). These are deducted
from total outstanding equity shares.
2. Refer note 20 for detailed quantitative information including investors holding more than 5% of equity share capital.
3. The above two Employee Welfare Trust(s) hold an aggregate 44,896,780 equity shares of the Company for incentive and welfare benefits for group employees
as per extant applicable SEBI regulations. Pursuant to the exercise of right available under Regulation 29 of SEBI (Share Based Employee Benefits) Regulations,
2014, the Company has applied before the expiry date of 27 October 2019 for extension of the time limit for disposing of aforesaid equity shares. The said
application is under consideration and approval for extension from SEBI is awaited as at date.
B. Other Equity
Securities Retained General Capital Employee Share Total
Premium Earnings Reserve Redemption Stock Option application Attributable
Particulars Reserve Plan (ESOP) money to equity
& (SAR) pending holders
reserve allotment
Balance as at April 01, 2019 30,057.56 1,593.27 508.64 2.03 460.59 6.15 32,628.24
Profit for the year - 825.79 - - - - 825.79

Other Comprehensive Income - (0.47) - - - - (0.47)
Total comprehensive income - 825.32 - - - - 825.32
Statement of Changes in Equity for the year ended March 31, 2021
B. Other Equity (Continued)

Securities Retained General Capital Employee Share Total
Premium Earnings Reserve Redemption Stock Option application Attributable
Particulars Reserve Plan (ESOP) money to equity
& (SAR) pending holders
reserve allotment
Final dividends to equity shareholders - (266.51) - - - - (266.51)
Issue of equity instruments on ESOP 84.14 - - - - (85.88) (1.74)
ESOP charge - - - - 242.03 - 242.03
Transfers to securities premium on exercise of ESOP 33.37 - - - (33.37) - -
Share application money received during the year - - - - - 79.92 79.92
Stock appreciation rights (SAR) - - - - 148.93 - 148.93
Balance as at March 31, 2020 30,175.07 2,152.08 508.64 2.03 818.18 0.19 33,656.19
Profit for the year - 7,162.12 - - - - 7,162.12

Other Comprehensive Income - 9.54 - - - - 9.54
Total comprehensive income - 7,171.66 - - - - 7,171.66
Interim dividends to equity shareholders - (842.22) - - - - (842.22)

Issue of equity instruments on ESOP 46.71 - - - - (48.10) (1.39)
ESOP charge - - - - 139.42 - 139.42
Transfers to securities premium on exercise of ESOP 25.03 - - - (25.03) - -
Share application money received during the year - - - - - 49.61 49.61
Stock appreciation rights (SAR) - - - - 195.71 - 195.71
Balance as at March 31, 2021 30,246.81 8,481.52 508.64 2.03 1,128.28 1.70 40,368.98



Notes to the financial statements
1. Background
Edelweiss Financial Services Limited (‘the Company’) is registered with Securities and Exchange Board of India (SEBI) as Category
I – Merchant Banker. The Company was incorporated on November 21, 1995 and is the ultimate holding company of Edelweiss
group of companies. The Company has its registered office at Edelweiss House, Off C.S.T. Road, Kalina, Mumbai, India.
The Company is principally engaged in providing investment banking services and holding company activities comprising of
development, managerial and financial support to the business of Edelweiss group entities.
Significant Accounting Policies
1.1 Basis of preparation of financial statements
The standalone financial statements of the Company has been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).
These standalone financial statements have been prepared on a historical cost basis, except for derivative financial instruments
and other financial assets held for trading, which have been measured at fair value. The standalone financial statements are
presented in Indian Rupees (INR) and all values are rounded to the nearest million, except when otherwise indicated.
1.2 Presentation of financial statements
The Company presents its balance sheet in order of liquidity in compliance with the Division III of the Schedule III to the
Companies Act, 2013. An analysis regarding recovery or settlement within 12 months after the reporting date (current) and
more than 12 months after the reporting date (noncurrent) is presented in Note no 46.
Financial assets and financial liabilities are generally reported gross in the balance sheet. They are only offset and reported
net when, in addition to having an unconditional legally enforceable right to offset the recognised amounts without being
contingent on a future event, the parties also intend to settle on a net basis in all of the following circumstances:
• The normal course of business
• The event of default
• The event of insolvency or bankruptcy of the company and or its counterparties
1.3 Financial Instruments
1.3.1 Date of recognition
Financial assets and financial liabilities, with the exception of borrowings are initially recognised on the trade date, i.e., the
date that the Company becomes a party to the contractual provisions of the instrument. This includes regular way trades
purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation
or convention in the market place. The Company recognises borrowings when funds reach the Company.
1.3.2 Initial measurement of financial instruments
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.

Notes to the financial statements (Continued)
Significant Accounting Policies (Continued)
1.4 Classification of financial instruments
1.4.1 Financial assets:
The Company classifies all its financial assets based on the business model for managing the assets and the asset’s contractual
terms, measured at either:
Financial assets carried at amortized cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding. The changes in carrying value
of financial assets is recognised in profit and loss account.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding. The changes in fair value
of financial assets is recognised in Other Comprehensive Income.
Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL. The Company measures all
financial assets classified as FVTPL at fair value at each reporting date. The changes in fair value of financial assets is recognised
in Profit and loss account.
1.4.1.1 Amortized cost and Effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant period.
For financial instruments the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all
fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums
or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a
shorter period, to the gross carrying amount of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the
principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that
initial amount and the maturity amount, adjusted for any loss allowance. On the other hand, the gross carrying amount of a
financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
1.4.1.2 Financial assets held for trading
The Company classifies financial assets as held for trading when they have been purchased or issued primarily for short-term
profit making through trading activities or form part of a portfolio of financial instruments that are managed together, for
which there is evidence of a recent pattern of short-term profit is taking. Held-for-trading assets and liabilities are recorded
and measured in the balance sheet at fair value.

1.4.1.3 Investment in equity instruments
The Company measures all equity investments at fair value through profit or loss except, for Investment in subsidiaries
and associates are recognised at cost, subject to impairment if any at the end of each reporting period. Cost of investment
represents amount paid for acquisition of the investment.
1.4.2 Financial liabilities
All financial liabilities are measured at amortised cost except for financial guarantees, and derivative financial liabilities.
1.4.2.1 Debt securities and other borrowed funds
After initial measurement, debt issued, and other borrowed funds are subsequently measured at amortised cost. Amortised
cost is calculated by taking into account any discount or premium on issue funds, and costs that are an integral part of the
EIR.
1.4.2.2 Financial assets and Financial liabilities at fair value through profit or loss
Financial assets and financial liabilities in this category are those that are not held for trading and have been either designated by
management upon initial recognition or are mandatorily required to be measured at fair value under Ind AS 109. Management
only designates an instrument at FVTPL upon initial recognition when one of the following criteria are met. Such designation
is determined on an instrument-by-instrument basis:
• The designation eliminates, or significantly reduces, the inconsistent treatment that would otherwise arise from
measuring the assets or liabilities or recognising gains or losses on them on a different basis; or
• The liabilities are part of a group of financial liabilities, which are managed, and their performance evaluated on a fair
value basis, in accordance with a documented risk management or investment strategy; or
• The liabilities containing one or more embedded derivatives, unless they do not significantly modify the cash flows that
would otherwise be required by the contract, or it is clear with little or no analysis when a similar instrument is first
considered that separation of the embedded derivative(s) is prohibited.
Financial assets and financial liabilities at FVTPL are recorded in the balance sheet at fair value. Changes in fair value are
recorded in profit and loss with the exception of movements in fair value of liabilities designated at FVTPL due to changes in
the Company’s own credit risk. Such changes in fair value are recorded in the Own credit reserve through OCI and do not get
recycled to the profit or loss. Interest earned or incurred on instruments designated at FVTPL is accrued in interest income
or finance cost, respectively, using the EIR, taking into account any discount/ premium and qualifying transaction costs being
an integral part of instrument. Interest earned on assets mandatorily required to be measured at FVTPL is recorded using
effective interest rate.

1.4.2.3 Financial guarantee:
Financial guarantees are contract that requires the Company to make specified payments to reimburse to holder for loss that
it incurs because a specified debtor fails to make payment when it is due in accordance with the terms of a debt instrument.
Financial guarantee issued or commitments to provide a loan at below market interest rate are initially measured at fair value
and the initial fair value is amortised over the life of the guarantee or the commitment. Subsequently they are measured at
higher of this amortised amount and the amount of loss allowance.
1.4.3 Financial liabilities and equity instruments
Financial instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
1.4.4 Derivative contracts (Derivative assets / Derivative liability)
The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign
exchange rate risks, including foreign exchange forward contracts and interest rate swaps.
Derivatives are initially recognised at fair value and are subsequently re-measured at fair value through profit or loss. The
resulting gain or loss is recognised in profit or loss immediately.
1.5 Reclassification of financial assets and financial liabilities
The Company does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional
circumstances in which the Company acquires, disposes of, or terminates a business line. Financial liabilities are never
reclassified.
1.6 Employee welfare trust
The Company is a sponsor to two trusts namely: (i) Edelweiss Employees’ Welfare Trust; and (ii) Edelweiss Employees’
Incentives and Welfare Trust. These trusts have been formed exclusively to provide benefits to employees of the Company
and its subsidiaries and associates. These trusts have been treated as an extension of the Company for the purpose of these
financial statements. Accordingly, the equity shares of the Company held by these trusts have been treated as treasury shares.
The excess of the cost of such shares over the face value of shares has been reduced from the securities premium account of
the Company.

1.7 Derecognition of financial assets and financial liabilities
1.7.1 Derecognition of financial assets due to substantial modification of terms and conditions
The Company derecognises a financial asset when the terms and conditions have been renegotiated to the extent that,
substantially, it becomes a new loan, with the difference recognised as a derecognition gain or loss, to the extent that an
impairment loss has not already been recorded.
If the modification does not result in cash flows that are substantially different, the modification does not result in derecognition.
Based on the change in cash flows discounted at the original EIR, the Company records a modification gain or loss, to the
extent that an impairment loss has not already been recorded.
1.7.2 Derecognition of financial assets (other than due to substantial modification)
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is derecognised
when the rights to receive cash flows from the financial asset have expired. The Company also derecognises the financial asset
if it has both transferred the financial asset and the transfer qualifies for derecognition.
The Company has transferred the financial asset if, and only if, either:
• The Company has transferred its contractual rights to receive cash flows from the financial asset; or
• It retains the rights to the cash flows but has assumed an obligation to pay the received cash flows in full without material
delay to a third party under a ‘pass–through’ arrangement.
A transfer only qualifies for derecognition if either:
• The Company has transferred substantially all the risks and rewards of the asset; or
• The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset
The Company considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its
entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions
on the transfer.
1.7.3 Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and
the consideration paid, including modified contractual cash flow recognised as new financial liability, would be recognised in
profit or loss.

1.8 Impairment of financial assets
The Company records allowance for expected credit losses for all amortised cost financial assets and financial guarantee
contracts, in this section all referred to as ‘financial instruments. Equity instruments are not subject to impairment under Ind
AS 109.
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables and lease
receivables. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The
Company uses a provision matrix to determine impairment loss allowance on portfolio of its receivables. The provision matrix
is based on its historically observed default rates over the expected life of the receivables.
For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk
since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses (12m ECL). The assessment of whether lifetime ECL should be recognised is based on significant increases
in the likelihood or risk of a default occurring since initial recognition instead of on evidence of a financial asset being credit-
impaired at the reporting date or an actual default occurring.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the
original effective interest rate. The Company recognises an impairment gain or loss in profit or loss for all financial instruments
with a corresponding adjustment to their carrying amount through a loss allowance account.
1.9 Write off
Financial assets are written off either partially or in their entirety only when the Company has stopped pursuing the recovery.
If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to
the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to impairment
on financial instruments in statement of profit and loss.
1.10 Determination of fair value
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

1.10 Determination of fair value (Continued)
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a
non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. In order
to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques,
as summarised below:
• Level 1 financial instruments −Those where the inputs used in the valuation are unadjusted quoted prices from active
markets for identical assets or liabilities that the Company has access to at the measurement date. The Company
considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the
identical assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet
date.
• Level 2 financial instruments−Those where the inputs that are used for valuation and are significant, are derived from
directly or indirectly observable market data available over the entire period of the instrument’s life.
• Level 3 financial instruments −Those that include one or more unobservable input that is significant to the measurement
as whole. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on
the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Company periodically reviews its valuation techniques including the adopted methodologies and model calibrations.
1.11 Revenue from contract with customer
Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as) the
Company satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset
is transferred when (or as) the customer obtains control of that asset. When (or as) a performance obligation is satisfied, the
Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration) that is
allocated to that performance obligation. The Company applies the five-step approach for recognition of revenue:
i. Identification of contract(s) with customers;
ii. Identification of the separate performance obligations in the contract;
iii. Determination of transaction price;
iv. Allocation of transaction price to the separate performance obligations; and
v. Recognition of revenue when (or as) each performance obligation is satisfied

1.11 Revenue from contract with customer (Continued)
Revenue Recognition for different heads of Income are as under:
(i) Investment banking advisory fees, Syndication fees (net of tax)
Advisory/Syndication fees are recognised on an accrual basis in accordance with agreement entered into with respective
investment managers / advisors.
(ii) Interest income
Interest income is recognized using the effective interest rate.
(iii) Dividend income
Dividend income is recognized in the statement of profit or loss on the date that the Company’s right to receive payment
is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the
amount of dividend can be reliably measured. This is generally when the Shareholders approve the dividend.
(iv) Profit or loss on sale of investments
Profit or loss on sale of investments is recognised on trade date basis. Difference between the sale price and average
cost of acquisition is recognized as profit or loss on sale of investments.
1.12 Earnings per share
Basic earnings per share is computed by dividing the net profit after tax attributable to the equity shareholders for the year
by the weighted average number of equity shares outstanding for the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares
were exercised or converted during the year. Diluted earnings per share is computed by dividing the net profit after tax
attributable to the equity shareholders for the year by weighted average number of equity shares considered for deriving
basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all
potential equity shares.
1.13 Foreign currency transactions
These financial statements are presented in Indian Rupees which is also the functional currency of the Company. Transactions
in currencies other than Indian Rupees (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

1.14 Retirement and other employee benefit
Provident fund and national pension scheme
The Company contributes to a recognised provident fund and national pension scheme which is a defined contribution scheme.
The contributions are accounted for on an accrual basis and recognised in the statement of profit and loss.
Gratuity
The Company’s gratuity scheme is a defined benefit plan. The Company’s net obligation in respect of the gratuity benefit
scheme is calculated by estimating the amount of future benefit that the employees have earned in return for their service in
the current and prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets,
if any, is deducted. The present value of the obligation under such benefit plan is determined based on independent actuarial
valuation using the Projected Unit Credit Method. Benefits in respect of gratuity are funded with an Insurance company
approved by Insurance Regulatory and Development Authority (IRDA).
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the
net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Compensated Absences
The eligible employees of the Company are permitted to carry forward certain number of their annual leave entitlement to
subsequent years, subject to a ceiling. The Company recognises the charge in the statement of profit and loss and corresponding
liability on such non-vesting accumulated leave entitlement based on a valuation by an independent actuary. The cost of
providing annual leave benefits is determined using the projected unit credit method.
The liability is provided based on the number of days of unutilised leave at each balance sheet date based on a valuation by
an independent actuary.
1.15 Share-based payment arrangements
Equity-settled share-based payments to employees of the Group and others providing similar services that are granted by
the Company are measured by reference to the fair value of the equity instruments at the grant date. These includes Stock
Appreciation Rights (SARs) which are equity settled share-based payments.
a. with respect to Company’s employees:
The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting
period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase
in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that
the cumulative expense reflects the revised estimate, with a corresponding adjustment to the Employee Stock Option
Plan Reserve and Stock Appreciation Rights Reserve. In cases where the share options granted vest in installments over
the vesting period, the Company treats each installment as a separate grant, because each installment has a different
vesting period, and hence the fair value of each installment differs.

1.15 Share-based payment arrangements (Continued)
b. with respect to employees of the Group:
The fair value determined at the grant date of the equity-settled share-based payments is accounted as a capital
contribution (deemed investment) to the respective subsidiaries over the vesting period, based on the Company’s
estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each
reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact
of the revision of the original estimates, if any, is recognised such that the cumulative capital contribution (deemed
investment) is increased so that it reflects the revised estimate, with a corresponding adjustment to the Employee Stock
Option Plan Reserve. In cases where the share options granted vest in installments over the vesting period, the Company
treats each installment as a separate grant, because each installment has a different vesting period, and hence the fair
value of each installment differs. Whenever, these estimates are expected to get settle between the subsidiaries and
the Company, they are accounted as receivable/payable.
1.16 Property, plant and equipment
Property plant and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated depreciation,
and accumulated impairment in value. Changes in the expected useful life are accounted for by changing the amortisation
period or methodology, as appropriate, and treated as changes in accounting estimates.
Subsequent costs incurred on an item of property, plant and equipment is recognised in the carrying amount thereof when
those costs meet the recognition criteria as mentioned above. Repairs and maintenance are recognised in profit or loss as
incurred.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives. Depreciation is provided on a written down value basis from the date the
asset is ready for its intended use or put to use whichever is earlier. In respect of assets sold, depreciation is provided up to
the date of disposal.
As per the requirement of Schedule II of the Companies Act, 2013, the Company has evaluated the useful lives of the respective
fixed assets which are as per the provisions of Part C of the Schedule II for calculating the depreciation.
Estimated useful lives of the assets are as follows:
Nature of assets Estimated useful life

Building (other than Factory Building) 60 years
Furniture and fixtures 10 years
Vehicles 8 years
Office equipment 5 years
Computers - servers and networks 6 years
Computers - end user devices, such as desktops, laptops, etc. 3 years
Leasehold improvements are amortised on a straight-line basis over the estimated useful lives of the assets or the period of
lease, whichever is shorter.

1.16 Property, plant and equipment (Continued)
Amount of those components which have been separately recognised as assets is derecognised at the time of replacement
thereof. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as
the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
1.17 Intangible assets
Intangible assets are recorded at the consideration paid for the acquisition of such assets and are carried at cost less
accumulated amortization and impairment, if any. Intangibles such as software are amortised over a period of 3 years based
on its estimated useful life.
1.18 Impairment of non-financial assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on
internal/external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of cash generating unit which the asset belongs to is less than
its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment
loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of the depreciable historical cost.
1.19 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less.
1.20 Provisions and other contingent liabilities
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of
the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where
the probability of outflow is considered to be remote, or probable, but a reliable estimate cannot be made, a contingent liability
is disclosed. Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes
into account a number of factors including legal advice, the stage of the matter and historical evidence from similar incidents.

1.21 Income tax expenses
Income tax expense represents the sum of the tax currently payable and deferred tax.
1.21.1 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported
in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
1.21.2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.
Deferred tax assets are also recognised with respect to carry forward of unused tax losses and unused tax credits (including
Minimum Alternative Tax credit) to the extent that it is probable that future taxable profit will be available against which the
unused tax losses and unused tax credits can be utilised.
It is probable that taxable profit will be available against which a deductible temporary difference, unused tax loss or unused
tax credit can be utilised when there are sufficient taxable temporary differences which are expected to reverse in the period
of reversal of deductible temporary difference or in periods in which a tax loss can be carried forward or back. When this is
not the case, deferred tax asset is recognised to the extent it is probable that:
• the entity will have sufficient taxable profit in the same period as reversal of deductible temporary difference or periods
in which a tax loss can be carried forward or back; or
• tax planning opportunities are available that will create taxable profit in appropriate periods.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end
of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in
which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
1.21.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.

1.22 Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company’s accounting policies, which are described above, the management is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.
1.23 Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations, that the management has made in the
process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised
in the standalone financial statements.
1.23.1 Business model assessment
Classification and measurement of financial assets depends on the results of the solely payments for principal and interest
(SPPI) and the business model test. The Company determines the business model at a level that reflects how Group of financial
assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all
relevant evidence including how the performance of the assets is evaluated and their performance is measured, the risks that
affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The
Company monitors financial assets measured at amortised cost that are derecognised prior to their maturity to understand
the quantum, the reason for their disposal and whether the reasons are consistent with the objective of the business for which
the asset was held. Monitoring is part of the Company’s continuous assessment of whether the business model for which the
remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change
in business model and so a prospective change to the classification of those assets.
1.24 Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, as described below. The Company based its assumptions and estimates on parameters
available when these financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such
changes are reflected in the assumptions when they occur.
1.24.1 Fair value of financial instruments
The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions
(i.e., an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active
markets, they are determined using a variety of valuation techniques that include the use of valuation models. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in
establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to items such
as credit risk (both own and counterparty), funding value adjustments, correlation, and volatility.

1.24 Key sources of estimation uncertainty (Continued)
1.24.2 Impairment of financial assets
The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the estimation
of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of
a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different
levels of allowances.
The Company’s ECL calculations are outputs of models with a number of underlying assumptions regarding the choice of
variable inputs and their interdependencies.
It is Company’s policy to regularly review its models in the context of actual loss experience and adjust when necessary.
1.25 Standards issued but not yet effective
There are no new standard or amendment issued but not effective.

As at As at
Particulars
March 31, 2021 March 31, 2020
2. Cash and cash equivalents
Cash in hand 0.01 0.10
Balances with banks
- in current accounts 1,481.80 13.56
Total 1,481.81 13.66
2.A Bank balances other than cash and cash equivalents

Unpaid dividend accounts 8.19 9.55
Total 8.19 9.55
3. Derivative financial instruments
The Company enters into derivative transactions to hedge its interest rate risks and currency risks.
These derivatives are held for risk management purposes i.e. economic hedges but the Company has elected not to apply
hedge accounting requirements.
March 31, 2021

Particulars Unit Currency Notional Fair value Unit Currency Notional Fair value
amount* Asset amount* liability
Currency Futures Number of USDINR 1,22,71,000 6.15 Number of USDINR - -
currency currency
units units
GBPINR 3,00,000 (0.03)
Less: Amounts (6.15) 0.03
Offset (refer
note. 4 offsetting
disclosure)
Forwards Number of USDINR - -
currency
units
Total Derivative Total - Total -
Financial
Instruments

3. Derivative financial instruments (Continued)

March 31, 2020
Particulars Unit Currency Notional Fair value Unit Currency Notional Fair value
amount* Asset amount* liability
Currency Futures Number of USDINR - - Number of USDINR 58,95,000 0.77
currency currency
units units
GBPINR 3,00,000 1.12
Less: Amounts - (1.89)
Offset (refer note.4
offsetting disclosure)
(ii) Currency forwards
Forwards Number of USDINR - -
currency
units
Total Derivative Total - Total -
Financial
Instruments
* Notional amount represents quantity in case of currency linked derivatives
4. Offsetting
Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of
insolvency, derivative financial assets and financial liabilities will be settled on a net basis. The tables below summarise the
financial assets and liabilities subject to offsetting, enforceable master netting and similar agreements, as well as financial
collateral received to mitigate credit exposures for these financial assets, and whether offset is achieved in the balance sheet:
Financial assets subject to offsetting March 31, 2021

Offsetting recognised Netting potential not Assets not Total
in the balance sheet recognised in balance subject assets
sheet to netting
arrangements
Particulars Gross asset Amount Net asset Financial Assets after Assets Recognised
before offset* recognised liabilities consideration recognised in the
offset in balance of netting on the balance
sheet potential balance sheet
sheet
Derivative financial assets 6.15 6.15 - - - - -
Financial liabilities subject to offsetting March 31, 2021

Offsetting recognised Netting potential not Liabilities Total
in the balance sheet recognised in balance not subject liabilities
sheet to netting
arrangements
Particulars Gross Amount Net Financial Liabilities Liabilities Recognised
liability offset* liability assets after recognised in the
before recognised consideration on the balance
offset in balance of netting balance sheet
Derivative financial liabilities 0.03 0.03 - - - - -
* As at the reporting date, the amount of cash margin received that has been offset against the gross derivative assets is ₹ 6.15 million. Also, at
the reporting date, the amount of cash margin paid that has been offset against the gross derivative liabilities is ₹ 0.03 million.

4. Offsetting (Continued)
Financial assets subject to offsetting March 31, 2020
Offsetting recognised Netting potential not Assets not Total assets
in the balance sheet recognised in balance subject
sheet to netting
arrangements
Particulars
Gross asset Amount Net asset Financial Assets after Assets Recognised
before offset* recognised liabilities consideration recognised on in the
offset in balance of netting the balance balance
sheet potential sheet sheet
Derivative financial assets - - - - - - -
Financial liabilities subject to offsetting March 31, 2020

Offsetting recognised Netting potential not Liabilities Total
in the balance sheet recognised in balance not subject liabilities
sheet to netting
arrangements
Particulars Gross Amount Net liability Financial Liabilities Liabilities Recognised
liability offset* recognised assets after recognised on in the
before in balance consideration the balance balance
offset sheet of netting sheet sheet
potential
Derivative financial liabilities 1.89 1.89 - - - - -
* As at the reporting date, the amount of cash margin received that has been offset against the gross derivative assets is ₹ Nil. Also, at the
reporting date, the amount of cash margin paid that has been offset against the gross derivative liabilities is ₹1.89 million.
5. Trade receivables
As at As at
Particulars
March 31, 2021 March 31, 2020
a) Trade receivables
Receivables considered good - Unsecured 305.98 355.18
Less : Allowance for expected credit losses (114.98) (38.38)
Total 191.00 316.80
b) Reconciliation of impairment allowance on trade receivables:

Particulars
March 31, 2021 March 31, 2020
Impairment allowance measured as per simplified approach
Impairment allowance - Opening Balance (38.38) (97.05)
(Add)/ less: asset originated or acquired (net) (76.60) 58.67
Impairment allowance - Closing Balance (114.98) (38.38)
Notes:
1) No trade or other receivables are due from directors or other officers of the company either severally or jointly with any other person.
2) No trade or other receivables are due from firms or private companies in which directors is partner, a director or a member.
3) Trade receivables are non-interest earing and are generally on terms of 1 to 30 days.

5. Trade receivables (Continued)
c) Trade receivables days past due

0-90 91-180 181-270 270- 360 > 360 Total
As at March 31, 2021
days days days days days
ECL Rates 0.54% 98.92% 99.91% 100% 100%
Estimated total gross carrying amount at default 191.59 36.53 53.15 0.65 24.06 305.98
ECL - Simplified approach 1.03 36.14 53.10 0.65 24.06 114.98
Net carrying amount 190.56 0.39 0.05 - - 191.00
0-90 91-180 181-270 270- 360 > 360 Total

days days days days days
ECL Rates 0.55% 17.37% 56.10% 88.16% 100%
Estimated total gross carrying amount at default 300.23 21.70 - 16.30 16.95 355.18
ECL - Simplified approach 3.29 3.77 - 14.37 16.95 38.38
Net carrying amount 296.94 17.93 - 1.93 - 316.80
6. Loans
As at As at
Particulars
March 31, 2021 March 31, 2020
(at Amortised cost)
Loans to related parties 12,474.13 -
Loans to employees 0.53 6.73
Total Gross 12,474.66 6.73
Less: Impairment loss allowance (2.23) -

Total (Net) 12,472.43 6.73
Unsecured 12,474.66 6.73

Total Gross 12,474.66 6.73

Total (Net) 12,472.43 6.73
Loans outside India

Others - -
Loans in India
Public sector - -
Others 12,474.66 6.73
Total Gross 12,474.66 6.73

Total (Net) 12,472.43 6.73
Note :
These loans are considered to have low credit risk based on credit evaluation undertaken by the Company. There is no history of any defaults
on these loans. Since the counter-parties are subsidiaries and employees of the Company, the Company regularly monitors to ensure that
these entities have enough liquidity which safeguards the interest of investors and lenders. Accordingly, there is very minimal Expected credit
loss allowance on the aforesaid loans.

7. Investments
At Amortised At fair value At cost Total
cost Through P&L (subsidiaries,
As at March 31, 2021 (subsidiaries, associates and
associates and others)
others)
Equity instruments - 27.40 40,895.95 40,923.35
Compulsory Convertible Debentures 250.12 - - 250.12
Non-cumulative redeemable Preference Shares
- - 1,000.00 1,000.00
Investment
Compulsory Convertible Preference Shares - - 1,650.00 1,650.00
TOTAL - Gross (A) 250.12 27.40 43,545.95 43,823.47
(i) Investments outside India - - 6.15 6.15
(ii) Investment in India 250.12 27.40 43,539.80 43,817.32
Total (B) 250.12 27.40 43,545.95 43,823.47
Less: Allowance for impairment (C) - - 6.15 6.15
Total Net (A-C) 250.12 27.40 43,539.80 43,817.32
Aggregate amount of quoted investments 2.04
Aggregate market value of quoted investments 2.04
Aggregate amount of unquoted investments 43,815.28
At Amortised cost At fair value At cost Total

Through P&L (subsidiaries,
associates and
others)
Equity instruments - 23.95 34,648.92 34,672.87
TOTAL - Gross (A) - 23.95 34,648.92 34,672.87
(i) Investments outside India - - 534.37 534.37
(ii) Investment in India - 23.95 34,114.55 34,138.50
Total (B) - 23.95 34,648.92 34,672.87
Less: Allowance for impairment (C) - - - -
Total Net (A-C) - 23.95 34,648.92 34,672.87
Aggregate amount of quoted investments 0.80
Aggregate market value of quoted investments 0.80
Aggregate amount of unquoted investments 34,672.07
Note :
1) The Company has Employee Stock Option Plans (ESOP) in force. Based on such ESOP schemes, the Company has granted options to
acquire equity shares of the Company that would vest in a graded manner to certain employees of subsidiaries. To the extent that the
Company has not charged and recovered the fair value of such stock options from its subsidiaries, it has been included in the above
carrying value of investment in the those subsidiaries.
2) Impairment on investment has been assessed based on business projection approved by Board of directors of respective subsidiaries /
associates. Impairment recognised, based on management assessment, if the recoverable value is less than carrying amount.

8. Other financial assets

As at As at
Particulars
March 31, 2021 March 31, 2020
Deposits- others 20.64 21.41
Margin placed with broker 29.20 15.28
Corporate guarantee fees receivable 324.63 356.59
Advances recoverable in cash or in kind or for value to be received 254.88 302.14
Total 629.35 695.42
9. Current tax assets (net)

Advance income taxes (net of provision for tax) 688.06 618.59
Total 688.06 618.59
10. Deferred tax assets (net)

Deferred tax assets
Trade receivables
Provision for expected credit loss 29.50 13.41
Property, plant and equipment and intangibles

Difference between book and tax depreciation 12.00 16.40
Investments and other financial instruments

Unrealised loss on derivatives - 0.66
Fair valuation of investments - loss in valuation 0.68 1.06
Employee benefit obligations

Disallowances under section 43B of the Income Tax Act, 1961 0.90 3.20
Unused tax losses

Accumulated Losses 336.54 256.40
379.62 291.13
Deferred tax liabilities
Investments and other financial instruments
Unrealised gain on derivatives 1.54 -
1.54 -
Total 378.08 291.13

11. Property, plant and equipment and intangible assets

Gross Block Depreciation / Amortization / Impairment Net Block
As at Additions Deductions As at As at Charge for Deductions As at As at
Description of assets
April 01, during the during the March 31, April 01, the year during the March 31, March 31,
2020 year year 2021 2020 year 2021 2021

Property, Plant and Equipment
Freehold Building 1.75 - - 1.75 0.25 0.08 - 0.33 1.42
Leasehold Improvements 0.63 - 0.63 - 0.63 - 0.63 - -
Furniture and Fixtures 0.15 - - 0.15 0.03 0.03 - 0.06 0.09
Vehicles 4.79 - 1.05 3.74 3.25 0.43 0.78 2.90 0.84
Office Equipment 1.70 0.26 - 1.96 0.72 0.44 - 1.16 0.80
Computers 18.45 1.31 4.21 15.55 14.23 2.30 3.82 12.71 2.84
Total: A 27.47 1.57 5.89 23.15 19.11 3.28 5.23 17.16 5.99
Intangible assets
Computer software 101.85 2.36 26.13 78.08 85.02 10.76 18.89 76.89 1.19
Total: B 101.85 2.36 26.13 78.08 85.02 10.76 18.89 76.89 1.19
Grand total [A+B] 129.32 3.93 32.02 101.23 104.13 14.04 24.12 94.05 7.18
11. Property, plant and equipment and intangible assets (previous year) (Continued)
Gross Block Depreciation / Amortization / Impairment Net Block
As at Additions Deductions As at As at Deductions As at As at
Description of assets Charge for
April 01, during the during the March 31, April 01, during the March 31, March 31,
the year
2019 year year 2020 2019 year 2020 2020
Property, Plant and Equipment
Freehold Building 1.75 - - 1.75 0.17 0.08 - 0.25 1.50
Leasehold Improvements 0.63 - - 0.63 0.62 0.01 - 0.63 -
Vehicles 6.81 - 2.02 4.79 3.66 0.97 1.38 3.25 1.54
Office Equipment 2.28 0.76 1.34 1.70 1.40 0.65 1.33 0.72 0.98
Computers 20.77 1.07 3.39 18.45 12.75 4.40 2.92 14.23 4.22
Total: A 32.41 1.87 6.81 27.47 18.66 6.14 5.69 19.11 8.36
Intangible assets
Computer software 91.23 10.62 - 101.85 59.00 26.02 - 85.02 16.83
Total: B 91.23 10.62 - 101.85 59.00 26.02 - 85.02 16.83
Grand total [A+B] 123.64 12.49 6.81 129.32 77.66 32.16 5.69 104.13 25.19

12. Other non-financial assets

As at As at
Particulars
March 31, 2021 March 31, 2020
Input tax credit 83.85 -
Contribution to gratuity fund (net) 13.41 -
Prepaid expenses 25.80 133.78
Vendor advances 12.82 -
Total 135.88 133.78
13. Trade Payables

Total outstanding dues of micro enterprises and small enterprises (Refer note 41) - 0.90
Total outstanding dues of creditors other than micro enterprises and small enterprises 2,354.43 52.45
(includes sundry creditors, provision for expenses, customer payables)
Total 2,354.43 53.35
14. Debt securities

Secured
Non-convertible redeemable Debentures (at amortised cost)
Non-convertible Debentures - privately placed 3,432.22 -
Non-Convertible Debentures - Public Issue 2,024.16 -
Market Linked Debentures 1,832.57 -
7,288.95 -
Unsecured
Commercial paper - 734.12
7,288.95 734.12
Debt Securities in India 7,288.95 734.12

Debt Securities outside India - -
Total 7,288.95 734.12
For secured debt, the Company has provided collateral in the nature of specific and Pari Passu charge of receivables and
investments .
Rate of Interest
7.00 - 7.99% - - - -
8.00 - 8.99% - - - -
9.00 - 9.99% - 738.88 1,261.12 2,000.00
10.00 - 10.99% - - - -
11.00 - 11.99% - - - -
19.00-19.99% 210.00 420.00 2,870.00 3,500.00
Zero Coupon Debentures - - - -
Various (benchmark linked) - 1,331.09 501.48 1,832.57
Accrued Interest and EIR (43.62)
Total 210.00 2,489.97 4,632.60 7,288.95

Rate of Interest
10.00 - 10.99% 734.12 - - 734.12
Total 734.12 - - 734.12

15. Borrowings other than Debt Securities

As at As at
Particulars
March 31, 2021 March 31, 2020
(at Amortised Cost)
Unsecured
Loan from related parties (repayable on demand) 1,091.16 732.51
(Interest rate payable @ 14.50% for March 31,
2021 and 11.75% for March 31, 2020)
1,091.16 732.51
Borrowings in India 1,091.16 732.51

Borrowings outside India - -
Total 1,091.16 732.51
16. Other financial liabilities

Other payables 7.95 0.02
Unpaid dividends 8.19 9.55
Accrued salaries and benefits 1,606.90 210.93
Financial guarantee obligation 324.63 356.59
Risk and Reward undertaking (Refer note 56 ) 4,426.30 -
Other Advances 467.51 -
Total 6,841.48 577.09
17. Current tax liabilities (net)

Provision for taxation (net of advance tax) 7.26 69.84
Total 7.26 69.84
18. Provisions
Provision for employee benefits
Gratuity - 2.13
Compensated leave absences 3.59 6.95
Interim dividend 842.22 -
Total 845.81 9.08
19. Other non-financial liabilities

Statutory liabilities* 111.87 69.28
Others 8.46 1.91
Total 120.33 71.19
* includes withholding taxes, provident fund, profession tax and other statutory dues payables

20. Equity share capital

As at March 31, 2021 As at March 31, 2020
Particulars
Authorised :
Equity Shares of ₹ 1 each 1,23,00,00,000 1,230.00 1,23,00,00,000 1,230.00
Preference shares of ₹ 5 each 40,00,000 20.00 40,00,000 20.00
1,23,40,00,000 1,250.00 1,23,40,00,000 1,250.00
Issued, Subscribed and Paid up:
Equity Shares of ₹ 1 each 93,57,98,077 935.80 93,44,09,002 934.41
Less: Shares held by Edelweiss Employees Incentives and
(73,01,510) (7.30) (73,01,510) (7.30)
Welfare Trust
Less: Shares held by Edelweiss Employees Welfare Trust (3,75,95,270) (37.60) (3,75,95,270) (37.60)
(Refer Note.1.6)
89,09,01,297 890.90 88,95,12,222 889.51
A. Reconciliation of number of shares

(Before deducting treasury shares)
Outstanding at the beginning of the year 93,44,09,002 934.41 93,26,69,564 932.67
Shares issued during the year:
-Under Employee Stock Options Plans (ESOPs) 13,89,075 1.39 17,39,438 1.74
Outstanding at the end of the year 93,57,98,077 935.80 93,44,09,002 934.41
Note :
1. Edelweiss Employees’ Welfare Trust and Edelweiss Employees’ Incentive and Welfare Trust are extension of
Company’s financial statements, these trusts are holding 4,48,96,780 number of equity shares as on March 31, 2021
amounting to ₹ 44.90 million (as at March 31, 2020: ₹ 44.90 million). These are deducted from total outstanding
equity shares.
2. The above two Employee Welfare Trust(s) hold an aggregate 4,48,96,780 equity shares of the Company for incentive
and welfare benefits for group employees as per extant applicable SEBI regulations. Pursuant to the exercise of
right available under Regulation 29 of SEBI (Share Based Employee Benefits) Regulations, 2014, the Company has
applied before the expiry date of 27 October 2019 for extension of the time limit for disposing of aforesaid equity
shares. The said application is under consideration and approval for extension from SEBI is awaited as at date.
B. Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of ₹ 1 per share. Each holder of equity shares is
entitled to one vote per share.
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of
the Company, after distribution of all preferential amounts, if any, in proportion to the number of equity shares held by
the shareholders.
C. Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
Particulars
No of shares % holding No of shares % holding
Rashesh Shah 14,56,01,730 15.56% 14,53,01,730 15.55%
Venkatchalam Ramaswamy 5,81,26,560 6.21% 5,80,26,560 6.21%
BIH SA 4,82,57,748 5.16% 4,70,07,748 5.03%
25,19,86,038 26.93% 25,03,36,038 26.79%
Note :
The Shareholding of Mr. Rashesh Chandrakant Shah and Mr. Venkatchalam A Ramaswamy in the Promoter and Promoter
Group category as at March 31 2020, does not include 3,00,000 equity shares and 1,00,000 equity shares purchased
by them respectively on March 31, 2020, as the shares were credited to the respective demat accounts post March 31,
2020, as per the settlement cycle.

21. Other Equity

As at As at
Particulars
March 31, 2021 March 31, 2020
Securities premium account 30,246.81 30,175.07
General reserve 508.64 508.64
Capital redemption reserve 2.03 2.03
Retained earnings 8,481.52 2,152.08
Stock options outstanding 783.64 669.25
Shares Appreciation Rights outstanding 344.64 148.93
Share application money pending allotment 1.70 0.19
Total 40,368.98 33,656.19
Movement in Other Equity

I. Securities premium account
Opening Balance 30,175.07 30,057.56
Add : On issue of shares on exercise of Employee Stock Options Plans (ESOPs) 46.71 84.14
Add : On transfer from ESOP reserve on exercise of Employee Stock Options Plans (ESOPs) 25.03 33.37
Total 30,246.81 30,175.07
II. General Reserve
Opening Balance 508.64 508.64
Add : Additions during the year - -
Total 508.64 508.64
III. Capital Redemption Reserve
Add : Additions during the year - -
Total 2.03 2.03
IV. Retained earnings
Opening Balance 2,152.08 1,593.27
Add: Profit for the year 7,162.12 825.79
Add: Other Comprehensive Income 9.54 (0.47)
Amount available for appropriation 9,323.74 2,418.59
Appropriations:
Interim dividend (842.22) -
Final dividend - (266.51)
Total (842.22) (266.51)
Total 8,481.52 2,152.08

V. Stock options outstanding (Refer note 38)
Add : Additions during the year 139.42 242.03
Less : Transfer to securities premium account on exercise of ESOPs (25.03) (33.37)
Total 783.64 669.25
VI. SAR outstanding (Refer note 38)
Opening Balance 148.93 -
Add : Additions during the year 195.71 148.93
Total 344.64 148.93
VII. Share application money pending allotment 1.70 0.19
(Received against ESOP exercised by employees. For details of ESOP plan refer note 38)
Total 1.70 0.19
Total 40,368.98 33,656.19


Particulars
March 31, 2021 March 31, 2020
22. Interest Income
On Financial assets measured at Amortised Cost
Interest on loans 833.17 116.93
Interest on deposits with bank - 2.39
Other interest income 1.79 1.84
Total 834.96 121.16
23. Dividend Income

Dividend on investment 1,365.31 694.72
Total 1,365.31 694.72
24. Fee and commission income (Refer Note 48)

Advisory and other fees 991.19 959.81
Total 991.19 959.81
25. Other operating income

Fee income from group (Refer note 36) 244.60 437.57
Total 244.60 437.57
26. Other income

Foreign exchange gain - 131.12
Miscellaneous income 67.82 92.13
Profit on sale of subsidiaries (net) ( Refer note 53) 13,714.85 18.89
Total 13,782.67 242.14
27. Finance cost

On Financial Liabilities measured at Amortised Cost
Interest on deposits
Interest on Inter-corporate deposits 2.76 -
Interest on borrowings
Interest on bank overdraft 1.76 -
Interest on loan from subsidiaries - 315.99
Interest on debt securities

Cost of benchmark linked debentures 35.08 -
Discount on commercial paper 33.05 0.20
Interest on debentures 900.07 -
Other interest expense

Financial and bank charges 0.61 6.89
Interest - others 0.01 0.03
Total 973.34 323.11


Particulars
March 31, 2021 March 31, 2020
28. Net loss/(gain) on fair value changes
Net (gain)/ loss on financial instruments at FVTPL
Investments
Fair value (gain) / loss (unrealised) (3.45) 3.03
Others
Profit on sale of investments (realised) - (137.69)
Fair Value loss on risk and reward undertaking (Refer note 56) 4,426.30 -
Total 4,422.85 (134.66)
29. Impairment on financial instruments

Trade receivables 78.52 18.73
Impairment in value of investments 6.15 -
Provision for expected credit loss 2.21 -
Others (Refer note 55) 1,400.10 -
Total 1,486.98 18.73
30. Employee benefit expenses

Salaries and wages 1,803.52 653.66
Contribution to provident and other funds 19.88 20.86
Expense on Employee Stock Option Scheme (ESOP) & Stock Appreciation Rights 84.68 99.65
(Refer note.38)
Staff welfare expenses 4.10 23.50
Total 1,912.18 797.67
31. Other expenses

Advertisement and business promotion 6.11 42.54
Auditors' remuneration (Refer note 31.A) 18.09 8.97
Commission and brokerage 39.92 28.28
Communication 5.42 6.53
Directors' sitting fees 1.84 1.82
Commission to non-executive directors 16.00 3.50
Insurance 20.79 36.76
Legal and professional fees 409.60 168.03
Management Fees (Refer note 57 ) 489.25 -
Printing and stationery 1.73 5.68
Rates and taxes 7.14 2.39
Rent (Refer Note 31.C) 61.36 83.32
Repairs and maintenance 0.60 0.51
Foreign exchange loss (net) 75.63 -
Computer software 24.76 46.48
Corporate social responsibility -Donation (Refer Note 31.B) 22.70 28.70
Donation - 0.30

31. Other expenses (Continued)

March 31, 2021 March 31, 2020
Clearing & custodian charges 2.72 4.85
Loss on sale of fixed assets 7.06 -
Membership and subscription 18.49 15.41
Office expenses 230.14 61.71
Postage and courier 0.13 2.62
Seminar & Conference 0.12 0.65
Goods & Service tax expenses 6.47 14.70
Travelling and conveyance 3.71 54.00
Miscellaneous expenses 0.37 5.17
Total 1,470.15 622.92
31.A Auditors' remuneration:

As an Auditor
Statutory Audit of the Company 4.40 4.40
Limited Review 3.60 3.60
Certification 0.36 0.51
Fees for debenture issuances 9.60 -
Towards reimbursement of expenses 0.13 0.46
Total 18.09 8.97
31.B Details of CSR Expenditure:

As per the provisions of Section 135 of Companies Act 2013,
Gross Amount required to be spent by the Company 22.70 28.01
Amount Spent (Paid in Cash)
Construction/ Acquisition of any assets - -
on purpose other than (i) above 22.70 28.70
Amount Spent (Yet to be paid in Cash)
Construction/ Acquisition of any assets - -
on purpose other than (i) above - -
Total 22.70 28.70
31.C Operating leases

Rental expenses for the year ended March 31, 2021 aggregated to ₹ 61.36 million (Previous year: ₹ 83.32 million) which has
been included under the head other expenses – Rent in the Statement of profit and loss. The Company does not have any
non-cancellable operating lease.

32. Income Tax
32.A Component of Income Tax Expenses

For the year ended for the year ended
Particulars
March 31, 2021 March 31, 2020
Current Tax - 45.59
Adjustment in respect of income tax of prior years (135.98) (43.69)
Deferred tax relating to temporary differences (86.95) (32.22)
Total Tax Charge for the year (222.93) (30.32)
Current Tax (135.98) 1.90

Deferred Tax (Refer Note 32.C) (86.95) (32.22)
32.B The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit before Taxes 6,939.19 795.47
Statutory Income Tax rate 25.17% 34.94%
Tax Charge at Statutory Rate 1,746.59 277.94
Tax effect of :
Adjustment in respect of current income tax of prior year (135.98) (43.69)
Income not charged to tax or chargeable to lower tax rate (3,795.68) (271.98)
DTA not created on

Current year taxable loss 1,555.12 -
Expenditure of current year 450.05 -
DTA created on expenses of earlier year (151.83) -

-
Tax impact due to revaluation of deferred tax due to change in Income tax rate* 81.40
Non Deductible Expenses 27.40 7.41
Income Tax Expenses Reported in Statement of Profit and Loss (222.93) (30.32)
Effective Income Tax Rate (3.21%) (3.81%)
* The government of India, on September 20, 2019 vide the Taxation Laws ( Amendment Ordinance) 2019 the Ordinance), inserted a new Section
115BAA in the Income Tax Act, 1961, which provides an option to the Company for paying Income tax at reduced rates. Accordingly, the Company
has remeasured its deferred tax assets (net) basis the rate prescribed in the aforesaid section resulting in additional charge of ₹ 81.40 millions.

32. Income Tax (Continued)
32.C Table below shows deferred tax recorded in the balance sheet and changes recorded in Income tax expenses:
For the Year Ended March 2021 As at Recognised Recognised Recognised As at

March 31, in profit in OCI directly in March 31,
2020 or loss equity 2021
Deferred Tax Assets
Difference between book and tax depreciation 16.40 (4.40) - - 12.00
(including intangibles)
Trade receivables - Expected credit loss 13.41 16.09 - - 29.50
Fair valuation of investments - loss in valuation 1.06 (0.38) - - 0.68
Disallowances under section 43B of the Income 3.20 (2.30) - - 0.90
Tax Act, 1961
Accumulated Losses 256.40 80.14 - - 336.54
Unrealised loss on derivatives 0.66 (0.66) - - 0.00
Deferred Tax Liabilities

Fair valuation of investments- gain in valuation - - - - -
Unrealised gain on derivatives - (1.54) - - (1.54)
Deferred Tax Asset (net) 291.13 86.95 - - 378.08
For the Year Ended March 2020 As at Recognised Recognised Recognised As at

March 31, in profit in OCI directly in March 31,
2019 or loss equity 2020
Deferred Tax Assets
Difference between book and tax depreciation 13.66 2.74 - - 16.40
(including intangibles)
Trade receivables - Expected credit loss 40.10 (26.69) - - 13.41
Fair value of investments - 1.06 - - 1.06
Disallowances under section 43B of the Income 3.60 (0.66) 0.26 - 3.20
Tax Act, 1961
Accumulated Losses 219.54 36.86 - - 256.40
Deferred Tax Liabilities

Fair valuation of investments- gain in valuation (35.52) 35.52 - - -
Unrealised gain on derivatives 17.27 (16.61) - - 0.66
Deferred Tax Asset (net) 258.65 32.22 0.26 - 291.13

33. Segment reporting
Primary Segment (Business Segment)
The Company’s business is organised and management reviews the performance based on the business segments as mentioned
below:
Segment Activities Covered

Agency business Advisory and transactional services
Holding company activities Development, managerial and financial support to the businesses of Edelweiss group entities
Income for each segment has been specifically identified. Expenditure, assets and liabilities are either specifically identified with
individual segments or have been allocated to segments on a systematic basis.
Based on such allocations, segment disclosures relating to revenue, results, assets and liabilities have been prepared.
Secondary Segment
Since the business operations of the Company are primarily concentrated in India, the Company is considered to operate only in
the domestic segment and therefore there is no reportable geographic segment.
The following table gives information as required under the Indian Accounting Standard -108 on “Segment Reporting”:

Particulars
March 31, 2021 March 31, 2020
I Segment Revenue
a) Agency business 664.08 808.18
b) Holding company activities 16,486.83 1,638.85
c) Unallocated 67.82 8.37
Total Income 17,218.73 2,455.40
II Segment Results
a) Agency business (142.71) (33.78)
b) Holding company activities 7,014.08 820.88
Profit before taxation 6,939.19 795.47
Less: Provision for taxation (222.93) (30.32)
Profit after taxation 7,162.12 825.79
Particulars March 31, 2021 March 31, 2020

III Segment Assets
c) Unallocated 1,066.14 919.24
Total 59,809.30 36,792.88
IV Segment Liabilities
Total 18,549.42 2,247.18

33. Segment reporting (Continued)

Particulars March 31, 2021 March 31, 2020
V Capital Expenditure
(Including intangible assets under development)
b) Holding company activities 3.31 9.71
c) Unallocated - -
Total 3.93 12.49
VI Depreciation and Amortization

b) Holding company activities 11.81 23.62
c) Unallocated - -
Total 14.04 32.16
VII Significant Non-Cash Expenses Other than Depreciation and Amortization

b) Holding company activities 5,793.35 81.72
c) Unallocated - -
Total 5,871.38 121.41
34. Disclosure as required by Indian Accounting Standard 24 - “Related Party Disclosure”:

(A) Subsidiaries which are controlled by the Company:
1 Edelweiss Securities Limited (upto March 26, 2021)
2 Edelweiss Finance & Investments Limited (upto March 26, 2021)
3 ECL Finance Limited
4 Edelweiss Global Wealth Management Limited
5 Edelweiss Gallagher Insurance Brokers Limited
6 Edelweiss Trustee Services Limited (Merged with ECap Equities Limited) (w.e.f November 30, 2019)
7 Edelcap Securities Limited (through ECap Equities Limited)
8 Edelweiss Asset Management Limited
9 ECap Equities Limited
10 Edelweiss Broking Limited (upto March 26, 2021)
11 Edelweiss Trusteeship Company Limited
12 Edelweiss Alternative Asset Advisors Limited
13 Edelweiss Housing Finance Limited
14 Edelweiss Investment Adviser Limited (through Edelweiss Rural & Corporate Services Limited)
15 EC Commodity Limited (through Edelweiss Rural & Corporate Services Limited)
16 Edel Land Limited
17 Edelweiss Custodial Services Limited (through Edelweiss Securities Limited) (upto March 26, 2021)
18 Edelweiss Investment Advisors Private Limited (up to March 26, 2021)
19 EC International Limited, Mauritius
20 Edelweiss Capital (Singapore) Pte. Limited
21 Edelweiss Alternative Asset Advisors Pte. Limited (through Edelweiss Capital (Singapore) Pte. Limited)
22 Edelweiss International (Singapore) Pte. Limited (through Edelweiss Capital (Singapore) Pte. Limited)
23 Aster Commodities DMCC, United Arab Emirates (through EC International Limited, Mauritius)
24 EAAA LLC, Mauritius (through EC International Limited)
25 EW Special Opportunities Advisors LLC, Mauritius (through EAAA LLC)
26 Edel Investments Limited

34. Disclosure as required by Indian Accounting Standard 24 - “Related Party Disclosure”: (Continued)
(A) Subsidiaries which are controlled by the Company: (Continued)
27 Edelweiss Tokio Life Insurance Company Limited
28 Edelweiss Rural & Corporate Services Limited (through Edel Finance Company Limited)
29 Edelweiss Comtrade Limited (through Edelweiss Rural & Corporate Services Limited)
30 Edel Finance Company Limited
31 Edelweiss Retail Finance Limited (through Edelcap Securities Limited)
32 Edelweiss Securities (Hong Kong) Private Limited (through Edelweiss Securities Limited- up to March 26, 2021)
33 Edelweiss Financial Services Inc (up to March 26, 2021)
34 Edelweiss Finvest Limited (Merged with Edel Finance Company Limited w.e.f. February 22, 2021)
35 Lichen Metals Private Limited (up to March 30, 2021)
36 Edelweiss Capital Services Limited (Incorporated as on February 12, 2021)
37 EdelGive Foundation
38 Edelweiss Resolution Advisors LLP (through Edelweiss Rural and Corporate Services Limited)
39 Edelweiss Multi Strategy Fund Adivsors LLP (through Edelweiss Rural and Corporate Services Limited)
40 EFSL International Limited, Mauritius (through EC International Limited)
41 Edelweiss Financial Services (UK) Limited, (through Edelweiss Securities Limited) (upto March 26, 2021)
42 Edelweiss General Insurance Company Limited
43 Edelweiss Asset Reconstruction Company Limited (through Edelweiss Custodial Services Limited)
44 Edelweiss Private Equity Tech Fund (through Ecap Equities Limited)
45 Edelweiss Securities (IFSC) Limited (upto March 26, 2021)
46 Edelweiss Value and Growth Fund (through Ecap Equities Limited)
47 Allium Finance Private Limited (through Edelweiss Rural and Corporate Services Limited)
48 Edelweiss Securities and Investments Private Limited (through Edelweiss Securities Limited)
49 ESL Securities Limited (through Edelweiss Securities Limited) (upto March 26, 2021)
50 Edelweiss Employees Welfare Trust
51 EC Global Limited (merged with EC international Limited w.e.f Septemeber 01, 2020)
52 Everest Securities & Finance Limited (w.e.f September 01, 2020 upto March 26, 2021)
53 India Credit Investment Fund – II (w.e.f. March 31, 2021)
54 EW India Special Assets Advisors LLC, Mauritius (through EAAA LLC) (upto June 30, 2019)
55 Edelweiss Holdings Limited (Merged with ECap Equities Limited w.e.f November 30, 2019)
56 Edelweiss AIF Fund I - EW Clover Scheme -1 (through Edelcap Securities Limited) ( closed w.e.f. February 29,2020)
57 Retra Ventures Private Limited (through Ecap Equities Limited) (ceased to become subsidiary w.e.f. March 19, 2020)
58 Edelweiss Securities Trading and Management Private Limited (Merged with Edelweiss Securities and Investments Private
Limited w.e.f. November 19, 2019)
59 Alternative Investment Market Advisors Private Limited (Merged with Ecap Equities Limited w.e.f November 22, 2019)
60 Edelweiss Employees Incentive and Welfare Trust
(B) Enterprises over which control is exercised by the Company:

Trust name :
1 ESAF - I Trust
2 EARC SAF - 2 Trust
3 EARC SAF - 3 Trust
4 EARC Trust SC 6
5 EARC Trust SC 7
6 EARC Trust SC 9
7 EARC Trust SC 102
8 EARC Trust SC 109
9 EARC Trust SC 112

(B) Enterprises over which control is exercised by the Company: (Continued)
Trust name : (Continued)
10 EARC Trust SC 130

(B) Enterprises over which control is exercised by the Company: (Continued)
Trust name : (Continued)
(C) Individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them control or
significant influence over the Company:
1 Mr. Rashesh Shah
2 Mr. Venkatchalam Ramaswamy
3 Ms. Vidya Shah
4 Ms. Aparna T. C.
(D) Key managerial personnel :

1 Mr. Rashesh Shah - Chairman, Managing Director & CEO
2 Mr. Venkatchalam Ramaswamy - Vice Chairman and Executive Director
3 Mr. Himanshu Kaji - Executive Director
4 Mr. Rujan Panjwani - Executive Director
5 Mr. S Ranganathan - Chief Financial Officer (up to October 31, 2020)
6 Mr. Sarju Simaria - Chief Financial Officer (w.e.f. November 01, 2020)
(E) Relatives of Individuals exercising significant influence

1 Ms. Kaavya Venkat
2 Ms. Shilpa Mody
3 Ms. Sejal Premal Parekh
4 Mr. A V Ramaswamy
5 Ms. Sneha Sripad Desai
6 Ms. Shabnam Panjwani
(F) Independent Directors

1 Mr. Berjis Desai
2 Mr. Biswamohan Mahapatra
3 Mr. Kunnasagaran Chinniah
4 Mr. Navtej S. Nandra
5 Mr. P. N. Venkatachalam
6 Mr. Ashok Kini
7 Dr. Ashima Goyal
(G) Other Director
1 Ms. Anita M George
(H) Associates with whom transactions have taken place

1 Edelweiss Securities Limited (w. e. f. March 27, 2021)
(I) Subsidiaries of Edelweiss Securities Limited

1 Edelweiss Finance & Investments Limited
2 Edelweiss Broking Limited
3 Edelweiss Custodial Services Limited
4 Edelweiss Investment Advisors Private Limited
5 Edelweiss Financial Services Inc
6 Edelweiss Financial Services (UK) Limited
7 Edelweiss Securities (IFSC) Limited
8 ESL Securities Limited
9 Edelweiss Securities (Hong Kong) Private Limited
(J) Transactions and balances with related parties

Sr. Nature of Transaction Related Party Name March 31, 2021 March 31, 2020
No.
Capital Account Transactions during the year
1 Sale of Equity shares to Edelweiss Securities Limited 3,837.51 189.63
Edel Finance Company Limited 1,654.97 -
Edelweiss Rural & Corporate Services Limited 0.10 -
Edelweiss Global Wealth Management Limited 15,495.91 -
2 Amount received on winding Edelweiss Capital (Singapore) Pte. Limited 72.83 -

up of Subsidiary
3 Purchase of Equity shares from Ecap Equities Limited 4,100.76 -

Edel Land Limited 922.46 -
4 Investment in Compulsory Edelweiss Alternative Asset Advisors Limited 250.00 -

Convertible Debentures of
5 Investments in Compulsory Edel Finance Company Limited 1,650.00 -

Convertible Pref Shares
6 Investment in Compulsory Edelweiss Global Wealth Management Limited 125.00 -

Convertible Debenture of
7 Investment in Equity shares of Edel Finance Company Limited 300.00 473.21

Edelweiss General Insurance Company Limited 850.00 1,000.00
Edelweiss Securities (IFSC) Limited - 15.00
Edelweiss Global Wealth Management Limited - 70.00

(J) Transactions and balances with related parties (Continued)
No.
Capital Account Transactions during the year (Continued)
8 Investment in Non-cumulative Ecap Equities Limited 1,000.00 -
redeemable preference share
9 Reimbursement of Loss ( Refer ECL Finance Limited 1,400.10 -

note 55)
10 Basis Absolute value - Short Edelweiss Rural & Corporate Services Limited 4,032.94 1,08,309.00
term loans taken from (Refer ECap Equities Limited 5,750.00 -
note 1)
11 Basis Absolute value - Short Edelweiss Rural & Corporate Services Limited 4,032.94 1,05,386.00
term loans repaid to (Refer ECap Equities Limited 4,658.84 -
note 1)
12 Basis Max value - Short term Edelweiss Rural & Corporate Services Limited 750.00 8,080.00
loans taken from (Refer note 1) ECap Equities Limited 5,159.20 -
13 Basis Max value - Short term Edelweiss Rural & Corporate Services Limited 750.00 8,007.49
loans repaid to (Refer note 1) ECap Equities Limited 5,159.20 -
14 Basis Absolute value - Short ECap Equities Limited 20,112.85 -

term loans given to (Refer Edelweiss Rural & Corporate Services Limited 21,430.85 0.19
note 1) Edelweiss Finance and Investments Limited 4,434.50 -
ECL Finance Limited 7,006.70 -
Edelweiss Global Wealth Management Limited 383.10 -
15 Basis Absolute value - Short ECap Equities Limited 20,112.85 -

term loans repaid by (Refer Edelweiss Rural & Corporate Services Limited 19,233.77 6.20
note 1) Edelweiss Finance and Investments Limited 1,079.50 -
EC International Limited - 380.96
Edelweiss Capital (Singapore) Pte. Limited - 1,972.34
16 Basis Max value - Short term ECap Equities Limited 10,346.55 -

loans given to (Refer note 1) Edelweiss Rural & Corporate Services Limited 7,876.58 0.19
Edelweiss Finance and Investments Limited 2,000.00 -

No.
Capital Account Transactions during the year (Continued)
17 Basis Max value - Short term ECap Equities Limited 10,300.00 -
loans repaid by (Refer note 1) Edelweiss Rural & Corporate Services Limited 4,605.00 6.20
Edelweiss Finance and Investments Limited 1,079.50 -
Edelweiss Capital (Singapore) Pte. Limited - 1,972.34
18 Sale of Fixed Assets to Edelweiss Finance and Investments Limited 0.01 0.01
Edelweiss Rural & Corporate Services Limited 0.15 0.15
Edelweiss Broking Limited 0.14 0.13
Edelweiss Securities Limited 0.27 0.07
ECL Finance Limited 0.00 0.07
Edelweiss Custodial Services Limited 0.02 0.04
Edelweiss Investment Advisors Limited 0.00 0.01
Edelweiss General Insurance Company Limited 0.02 -
ECap Equities Limited 0.00 -
Edelcap Securities Limited 0.00 0.04
Edelweiss Alternative Asset Advisors Limited 0.00 0.02
Edelweiss Housing Finance Limited - 0.02
Edelweiss Gallagher Insurance Brokers Limited - 0.01
Edelweiss Asset Reconstruction Company Limited - 0.06
19 Purchase of Fixed Assets from Edelweiss Housing Finance Limited 0.01 0.00
Edelweiss Investment Advisors Limited - 0.02
20 Dividend paid to Mr. Rashesh Shah - 43.59

Mr. Venkat Ramaswamy - 17.41
Ms. Vidya Shah - 9.91
Shah Family Discretionary Trust - 11.63
Spire Investment Advisors LLP - 0.96
Mr. Rujan Panjwani - 3.89
Mr. Himanshu Kaji - 1.20

No.
20 Dividend paid to (Continued) Ms. Kaavya Venkat - 3.54

Ms. Sneha Sripad Desai - 0.31
Ms. Shilpa Mody - 0.29
Ms. Sejal Premal Parekh - 0.29
Mr. A V Ramaswamy - 0.02
Mr. Navtej S. Nandra - 2.39
Mr. P. N. Venkatachalam - 0.08
21 Remuneration paid to Mr. Rashesh Shah 11.48 12.69

Mr. Venkat Ramaswamy 9.36 11.20
Mr. Himanshu Kaji 10.77 11.91
Mr. Rujan Panjwani 2.25 27.97
Mr. S. Ranganathan 5.79 25.18
Mr. Sarju Simaria 4.55 -
22 Dividend Income received EC International Limited 526.47 196.67

from
23 Rating support fee earned from ECL Finance Limited 0.44 1.66
Edelweiss Retail Finance Limited 0.04 0.14
Edelweiss Housing Finance Limited 0.07 0.25
ECap Equities Limited 0.03 0.13
Edelweiss Finance and Investments Limited 0.06 0.22
Edel Finance Company Limited 0.07 0.25
Edelweiss Asset Reconstruction Company Limited 0.06 0.23
24 Fee / commission paid to Edelweiss Securities Limited 192.64 42.75

ECL Finance Limited (Refer note 57 ) 669.15 -
Edelweiss Housing Finance Limited (Refer note 57 ) 12.06 -
Edelweiss Retail Finance Limited (Refer note 57 ) 8.05 -
25 Royalty Fees received from Edelweiss Gallagher Insurance Brokers Limited 5.00 10.00
Edelweiss Tokio Life Insurance Company Limited 30.00 -
Edelweiss General Insurance Company Limited 4.26 -

No.
26 Fee / Guarantee commission Edel Finance Company Limited 2.33 5.75

earned from Edelweiss Finance and Investments Limited 4.50 9.72
Edelweiss Tokio Life Insurance Company Limited - 25.10
Edelweiss General Insurance Company Limited - 2.85
Edelweiss Rural & Corporate Services Limited 125.39 -
Edelweiss International (Singapore) Pte. Limited - 0.24
Edelweiss Housing Finance Limited 1.17 -
Edelweiss Retail Finance Limited 0.81 -
Edelweiss Asset Management Limited 0.23 -
27 Business Service Charges Edelweiss General Insurance Company Limited 0.59 1.44
income earned from Edelweiss Asset Reconstruction Company Limited 3.09 2.87
Edel Investments Limited 0.02 0.68
Edelweiss Tokio Life Insurance Company Limited 1.24 1.32
Edelweiss Global Wealth Management Limited 0.11 1.59
Edelweiss Gallagher Insurance Brokers Limited 0.07 0.71
Edelweiss Asset Management Limited 0.51 1.41
Allium Finance Private Limited 0.00 0.00
EC Commodity Limited 0.00 0.00
Edelweiss Comtrade Limited 0.02 0.00
Lichen Metals Private Limited 0.00 0.00
Edel Land Limited 0.01 0.00
Edelgive Foundation 0.02 0.00

No.
28 Enterprise / Corporate Edelweiss Securities Limited 8.85 22.30

allocation income earned from Edelweiss Finance and Investments Limited 4.15 5.55
Edelgive Foundation 0.16 0.01
Edelweiss General Insurance Company Limited 4.91 8.87
29 Enterprise Cost - In Edelweiss Rural & Corporate Services Limited - 49.80
30 Enterprise Cost - Out ECL Finance Limited - 22.15

Edelweiss Rural & Corporate Services Limited - 3.19
Edelweiss Securities Limited - 6.68
Edelweiss Gallagher Insurance Brokers Limited - 0.50
EdelGive Foundation* - 0.00
ECap Equities Limited - 0.82
Edelweiss Global Wealth Management Limited - 3.39
Edelweiss Broking Limited - 5.37
Edelweiss Asset Management Limited - 3.03
Edel Investments Limited - 0.82
Edelweiss Finance and Investments Limited - 2.08
Edelweiss Alternative Asset Advisors Limited - 3.52
Edelweiss Custodial Services Limited - 2.26

No.
31 Corporate Cost - In Edelweiss Rural & Corporate Services Limited 220.69 5.33
32 Corporate Cost - Out ECap Equities Limited - 1.40

ECL Finance Limited - 51.79
Edelweiss Rural & Corporate Services Limited - 1.80
33 Interest income on margin Edelweiss Custodial Services Limited 1.45 0.81

from
34 Margins placed with Edelweiss Custodial Services Limited 13.25 263.64

35 Margins withdrawn by Edelweiss Custodial Services Limited 0.79 314.52

36 Interest expense on short term Edelweiss Rural & Corporate Services Limited 30.81 316.27
loan taken
37 Interest Income on short term ECap Equities Limited 430.32 -

loan given
Edelweiss Finance and Investments Limited 47.69 -
ECL Finance Limited 1.82 -
Edel Finance Company Limited 7.87 -
38 Other expenses paid to Edelweiss Custodial Services Limited 0.03 2.85
39 Cost reimbursements paid to Edelweiss Rural & Corporate Services Limited 53.02 62.60
Edelweiss Financial Services Inc. 1.81 8.97

No.
39 Cost reimbursements paid to Edelweiss Securities (Hong Kong) Private Limited 0.03 -
(Continued) Edel Finance Company Limited - 0.00
Edelweiss Asset Management Limited - 0.06
40 Cost reimbursements Edelweiss Securities Limited 7.53 9.41

recovered from Edelweiss Rural & Corporate Services Limited 26.78 22.12
EdelGive Foundation 0.47 0.12
Edelweiss Alternative Asset Advisors Pte. Limited 0.00 -
Edelweiss Investment Advisors Pte. Limited 0.05 0.01
Aster Commodities DMCC 0.01 -
EAAA LLC 0.01 -
Edelweiss International (Singapore) Pte. Limited 0.07 0.01
Edelweiss Securities (Hong Kong) Private Limited 0.03 0.00
Edelweiss Financial Services (UK) Limited 0.02 0.00
Edelweiss Trusteeship Company Limited 0.00 -
Edelweiss Securities And Investments Private 0.02 -
Limited

No.
40 Cost reimbursements Edelweiss Capital Services Limited 0.03 -

recovered from (Continued) Edelweiss Securities (IFSC) Limited* - 0.00
EC Global Limited* - 0.00
41 Directors' sitting fees paid to Mr Berjis Desai 0.50 0.26

Mr Biswamohan Mahapatra 0.34 0.34
Mr Kunnasagaran Chinniah 0.12 0.40
Mr Navtej S. Nandra 0.28 0.28
Mr P N Venkatachalam 0.36 0.34
Mr Dr. Ashima Goyal 0.12 0.10
Mr Ashok Kini 0.12 0.10
42 Commission paid to Non Mr Berjis Desai 0.50 1.00

executive directors Mr Biswamohan Mahapatra 0.50 1.00
Mr Kunnasagaran Chinniah 0.50 1.00
Mr Navtej S. Nandra 0.50 1.00
Mr P N Venkatachalam 0.50 1.00
Mr Dr. Ashima Goyal 0.50 -
Mr Ashok Kini 0.50 -
43 Contribution towards Edelgive Foundation 22.70 28.00

corporate social responsibility
Balances with related parties

44 Investments in Equity Shares in ECL Finance Limited 15,492.85 8,786.68
Edelweiss Tokio Life Insurance Company Limited 6,025.58 6,025.58
Edelweiss Finance and Investments Limited - 1,536.67
Edelweiss Alternative Asset Advisors Limited - 141.70
Edelweiss Asset Management Limited 1,892.16 1,558.60
Edelweiss Broking Limited - 3,197.95
Edelweiss Rural & Corporate Services Limited - 1,656.05
EC International Limited 6.15 6.15
ECap Equities Limited 1,289.95 1,289.95
Edelweiss Capital Services Limited 265.20 -
Edelweiss Housing Finance Limited 1,188.96 1,188.96
Edelweiss Trusteeship Company Limited 1.00 1.00
Edelweiss General Insurance Company Limited 3,936.16 3,086.16

No.
Balances with related parties (Continued)
44 Investments in Equity Shares in Edel Finance Company Limited 7,871.55 3,355.42
(Continued) Edelweiss Securities (IFSC) Limited - 162.54
Limited
Edelweiss Capital (Singapore) Pte. Limited - 528.21
45 Gratuity Payable to Edelweiss Securities Limited 2.20 -

Edelweiss Gallagher Insurance Brokers Limited 0.01 -
Edelweiss Broking Limited 2.55 -
Edelweiss Alternative Asset Advisors Limited 1.40 -
Edelweiss Asset Reconstruction Company Limited 0.42 -
46 Gratuity Receivable from ECL Finance Limited 0.21 -

47 ESOP Charges Payable to Edelweiss Housing Finance Limited 0.90 -

48 ESOP Charges Receivable from Edelweiss Securities Limited 60.20 41.35

Edelweiss Investment Advisors Limited 0.00 -
Edelweiss Alternative Asset Advisors Pte. Limited 1.87 2.13

No.
48 ESOP Charges Receivable from Edelweiss International (Singapore) Pte. Limited 0.03 -
(Continued) Edelweiss Investment Advisors Pte. Limited 2.60 2.41
Edelweiss Financial Services Inc. 0.01 -
Edel Finance Company Limited - 0.38
EC Commodity Limited - 0.34
49 Accrued interest on loans Edelweiss Rural & Corporate Services Limited 51.13 -
given to Edelweiss Finance and Investments Limited 7.32 -
ECL Finance Limited 1.68 -
50 Accrued interest on loans Edelweiss Rural & Corporate Services Limited 0.00 13.42
taken from
51 Short term loans given to Edelweiss Finance and Investments Limited 3,355.00 -
Edelweiss Rural & Corporate Services Limited 2,197.08 -
52 Short term loans taken from ECap Equities Limited 1,091.16 -
53 Debt Securities Edelweiss Finance and Investments Limited 18.70 -

54 Trade payables to Edelweiss Comtrade Limited 0.07 0.04

Edelweiss Capital (Singapore) Pte. Limited - 0.01
Edelweiss Finance and Investments Limited - 3.93
ECL Finance Limited 2,079.21 69.69
Edelweiss Securities (IFSC) Limited 0.06 2.65

No.
55 Trade receivables from Edelweiss Tokio Life Insurance Company Limited 37.95 75.62
Edelweiss Securities (IFSC) Limited - 0.00
Edelweiss Alternative Asset Advisors Pte. Limited 0.00 -
EC Commodity Limited - 0.00
Edelweiss Broking Limited - 7.49
Edelweiss Securities (Hong Kong) Private Limited 0.03 0.00
Edelweiss Financial Services (UK) Limited 0.02 0.00
Edelweiss Investment Advisors Pte. Limited 0.06 0.01
Edelweiss Investment Advisors Limited 0.05 -
Lichen Metals Private Limited - 0.00
EC Global Limited - 0.00
Aster Commodities DMCC 0.01 0.00
Edelweiss International (Singapore) Pte. Limited 0.07 0.25
Edelweiss Trusteeship Company Limited 0.00 -
EAAA LLC 0.01 -
Limited
EC International Limited - -
56 Margin placed with broker Edelweiss Custodial Services Limited 29.15 15.29

No.
57 Risk and Reward undertaking Edelweiss Retail Finance Limited 648.89 -
Edelweiss Housing Finance Limited 1,446.16 -
58 Corporate guarantee given on Edelweiss Rural & Corporate Services Limited - 35,570.00
behalf of Edelweiss Custodial Services Limited 6,950.00 14,405.00
ECap Equities Limited 1,879.70 4,751.10
Edelweiss Asset Reconstruction Company Limited 21,901.50 26,509.30
Edel Finance Company Limited 780.40 2,749.30
Edelweiss Housing Finance Limited 1,890.18 2,384.83
Edelweiss Investment Advisors Limited 2,250.00 -
ECL Finance Limited 2,375.00 3,174.17
Edelweiss Securities Limited - 1,170.00
Note:
1 As part of fund based activities, intergroup company loans and advances activities undertaken are generally in the nature
of revolving demand loans. Such loans and advances, voluminous in nature, are carried on at arm’s length and in the
ordinary course of business. Pursuant to Ind AS 24 – Related Party Disclosures, maximum amount of loans given and
repaid alongwith the transaction volume are disclosed above as in the view of the management it provides meaningful
reflection of such related party transactions on the financial statements. Interest income and expenses on such loans and
advances are disclosed on the basis of full amounts of such loans and advances given and repaid
2 Information relating to remuneration paid to key managerial person mentioned above excludes provision made for gratuity
and provision made for bonus which are provided for group of employees on an overall basis.
3 With effect from 01 April 2019, Edelweiss Finvest Limited have been merged with Edel Finance Company Limited , a wholly
owned subsidiary of the Company, pursuant to the scheme of arrangement approved by National Company Law Tribunal
vide its Order dated 22 February 2021
4 With effect from 01 September 2020, EC Global Limited have been merged with EC International Limited , a wholly owned
subsidiary of the Company, pursuant to the scheme of arrangement approved by National Company Law Tribunal.
5 With effect from 30 March 2021, Lichen Metals Private Limited is sold and ceased to become the subsidiary of the Company
6 On 12 February 2021, a new subsidiary namely Edelweiss Capital Advisory Services Limited is incorporated under Group.
Edeweiss Financial Services Limited holds 51% stake of Edelweiss Capital Advisory Services Limited
7 With effect from 31 March 2021, Ecap Equities Limited and Edelweiss Rural & Corporate Services Limited, wholly subsidiaries
of the Company has invested in the Fund namely, India Credit Investments Fund - II

35. Earnings per share
In accordance with Indian Accounting Standard 33 – “Earnings Per Share” prescribed by Companies (Accounts) Rules, 2014, the
computation of earnings per share is set out below:
Particulars 2021 2020

a. Shareholders earnings (as per statement of profit and loss) 7,162.12 825.79
b. Calculation of weighted average number of equity shares of ` 1 each:
- Number of shares outstanding at the beginning of the year 889,512,222 887,772,784
- Number of shares issued during the year 1,389,075 1,739,438
Total number of equity shares outstanding at the end of the year 890,901,297 889,512,222
Weighted average number of equity shares outstanding during the year
889,951,721 888,713,129
(based on the date of issue of shares)
c. Number of dilutive potential equity shares 3,799,386 5,575,693
d. Basic earnings per share (in ₹) {a/b} 8.05 0.93
e. Diluted earnings per share (in ₹) {a/(b+c)} 8.01 0.92
36. Cost sharing
Edelweiss Financial Services and it’s group companies provide necessary business and management oversights to its various
subsidiaries inter-alia in the form of business and strategy planning, stake holder relation, marketing & publication, technology
support, HR Policies including leadership & development of employees, governance and regulatory policies, policy advocacy, legal
& litigation handling framework etc. (here in after collectively referred to as “Business and Management oversight”). Subsidiaries
of Edelweiss group thus get benefitted from the oversight of expenses incurred by group companies. It is therefore imperative
that expenses if incurred on providing such oversight, to be shared by its subsidiaries.
The group companies provide business and support services to each other basis of the signed agreed terms. The services provided
are with the intent to create synergies at group level for e.g. sharing of empty spaces with the group companies, having common
HR and admin teams, using one’s available resource for the benefit of the group.
In consideration of the business and management oversight by Edelweiss group, the beneficiaries shall share and pay towards the
costs, as agreed. It is expressly agreed between the parties that sharing of these cost shall be on the total cost over the financial
year (April to March) adequate to compensate the function performed , assets employed and risks assumed by group companies
and will be determined by the beneficiaries and edelweiss group companies. The amount payable by the beneficiaries will be
reviewed intermittently and any amendment to the same will be mutually agreed upon in writing by the parties. For the purpose
of total cost means all operating expense including but not limited to, normal recurring cost such as office rent, communication
charges, salaries, employee benefits, cost of approved third-party vendor, deprecation on assets used and amortization.
37. Employee Benefits
a) Defined contribution plan - Provident funds
In accordance with Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, employees of the Company are
entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and
the Company contribute monthly at a determined rate. These contributions are made to a recognized provident fund
administered by Regional Provident Fund Commissioner. The employees contribute 12% of their basic salary and the
Company contributes an equal amount.
The Company recognised ` 16.30 million (Previous year: ` 20.92 million) for provident fund and other contributions in the
statement of profit and loss.

37. Employee Benefits (Continued)
b) Defined benefit plan - Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit plan covering
all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment in
accordance with the rules laid down in the Payment of Gratuity Act, 1972. The gratuity benefit is partially provided through
funded plan and annual expense is charged to the statement of profit and loss on the basis of actuarial valuation.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at 31 March 2021.The present value of the defined benefit obligations and the related current service cost
and past service cost, were measured using the Projected Unit Credit Method.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and
the amounts recognised in the Company’s financial statements as at balance sheet date:
Reconciliation of Defined Benefit Obligation (DBO)

March 31 ,2021 March 31 ,2020
Present Value of DBO at Start of the year 42.93 48.30
Service Cost
a. Current Service Cost 3.78 4.71
b. Past Service Cost - -
c Loss/(Gain) from Settlement - -
Interest Cost 2.20 3.33
Benefits Paid (4.00) (6.84)
Re-measurements
a. Actuarial Loss/(Gain) from changes in demographic assumptions (1.55) -
b. Actuarial Loss/(Gain) from changed in financials assumptions 1.58 2.24
c. Actuarial Loss/(Gain) from experience over last past year (2.95) (3.08)
Effect of acquisition / (divestiture) -
Changes in foreign exchange rate -
Transfer In / (Out) (5.57) (0.70)
Present Value of DBO at end of the year 36.42 42.93
Reconciliation of Fair Value of Plan Assets

March 31 ,2021 March 31 ,2020
Fair Value of Plan Assets at start of the year 40.80 47.37
Contributions by Employer 4.00 0.03
Benefits Paid (4.00) (6.84)
Interest Income Plan Assets 2.40 3.07
Re-measurements
Return on plan assets excluding amount including in net interest on the net defined
6.62 (2.83)
benefit liability / (asset)
Effect of acquisition / (divestiture) -
Changes in foreign exchange rate -
Fair Value of Plan Assets at end of the year 49.82 40.80
Actual Return on Plan Assets 90.22 0.23
Expected Employer Contributions for the coming year - 2.00


b) Defined benefit plan - Gratuity (Continued)
Expenses recongnised in the Profit or Loss
March 31 ,2021 March 31 ,2020
Service Cost
Current Service Cost 3.78 4.71
Net Interest on net defined benefit liability / (asset) (0.20) 0.25
Employer Expenses 3.58 (0.07)
Net Liability / (Asset) recognised in the Balance sheet

March 31 ,2021 March 31 ,2020
Present Value of DOB 36.42 42.93
Fair Value of Plan Assets 49.82 40.80
Liability / (Asset) recongised in the Balance Sheet (13.40) 2.13
Funded Status [Surplus/ (Deficit)] 13.40 (2.13)
Experience Adjustment on Plan Liabilities:(Gain)/Loss (2.95) (3.08)
Percentage Break-down of Total Plan Assets

March 31 ,2021 March 31 ,2020
Equity instruments 0.0% 0.0%
Debt instruments 0.0% 0.0%
Real estate 0.0% 0.0%
Derivatives 0.0% 0.0%
Investment Funds with Insurance Company 99.9% 100%
Of which, Unit Linked 99.9% 100%
Of which, Traditional/ Non-Unit Linked 0.0% 0.0%
Asset-backed securities 0.0% 0.0%
Structured debt 0.0% 0.0%
Cash and cash equivalents 0.1% 0.0%
Total 100% 100%
Actuarial assumptions:
March 31 ,2021 March 31 ,2020
Salary Growth Rate (% p.a) 7% p.a 7% p.a
Discount Rate (% p.a) 5% p.a 5.90% p.a
Withdrawal Rate (% p.a) 25%p.a 13%-25% p.a
IALM 2012-14 IALM 2012-14
Mortality Rate
(Ultimate) (Ultimate)
Interest Rate on Net DBO / (Asset ) (%) 5.9% p.a 7.3% p.a
Expected weighted average remaining working life (years) 2 Years 3 Years
Movement in Other Comprehensive Income

March 31 ,2021 March 31 ,2020
Balance at start of year (Loss)/ Gain (0.73) 1.26
Re-measurements on DBO
a. Actuarial Loss/(Gain) from changes in demographic assumptions 1.55 -
b. Actuarial Loss/(Gain) from changed in financials assumptions (1.58) (2.24)
c. Actuarial Loss/(Gain) from experience over last past year 2.95 3.08


b) Defined benefit plan - Gratuity (Continued)
Movement in Other Comprehensive Income (Continued)
March 31 ,2021 March 31 ,2020
Re-measurements on Plan Assets - -
Return on plan assets excluding amount including in net interest on the net defined
6.62 (2.83)
benefit liability / (asset)
Balance at end of year (Loss)/ Gain 8.81 (0.73)
Sensitivity Analysis
DOB increases / (decreases ) by March 31 ,2021 March 31 ,2020
1 % Increase in Salary Growth Rate 0.76 1.56
1 % Decrease in Salary Growth Rate (0.72) (1.42)
1 % Increase in Discount Rate (0.73) (1.43)
1 % Decrease in Discount Rate 0.78 1.59
1 % Increase in Withdrawal Rate (0.05) (0.09)
1 % Decrease in Withdrawal Rate 0.06 0.09
Mortality (Increase in expected lifetime by 1 year) 1 2
Mortality (Increase in expected lifetime by 3 year) 3 5
Note: The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other
parameters constant there are no changes from the previous period to the methods and assumptions underlying the sensitivity analyses.
Movement in Surplus / (Deficit)

March 31 ,2021 March 31 ,2020
Surplus / (Deficit) at start of year (2.12) (0.93)
Net (Acquisition) / Divestiture - -
Net Transfer (In)/ Out 5.57 0.70
Movement during the year - -
Current Service Cost (3.78) (4.71)
Past Service Cost - -
Effect of Curtailment - 5.03
Net Interest on net DBO 0.20 (0.25)
Changes in foreign exchange rate - -
Re-measurements 9.54 (1.99)
Contributions / Benefits 4.00 0.03
Surplus / (Deficit) at end of year 13.41 (2.12)
c) Compensated absences :
The Company provides for accumulated compensated absences as at the balance sheet date using projected unit credit
method based on actuarial valuation.
Other Disclosures
Description of Asset Liability Matching (ALM) Policy
The Company has an insurance plans invested in market linked bonds. The investment returns of the market-linked plan are
sensitive to the changes in interest rates. The liabilities’ duration is not matched with the assets’ duration.
Description of funding arrangements and funding policy that affect future contributions
The liabilities of the fund are funded by assets. The Company aims to maintain a close to full-funding position at each Balance
Sheet date. Future expected contributions are disclosed based on this principle.
Maturity profile
The average expected remaining lifetime of the plan members is 2 years (March 31, 2020: 5 years) as at the date of valuation.
This represents the weighted average of the expected remaining lifetime of all plan participants.

38. Share based payments: Employee Stock Option Plans and Stock Appreciation Rights Plans
Edelweiss Financial Services Limited (“EFSL” hereafter), has recognised share based payment expenses for the years ended 31
March 2021 and 31 March 2020 based on fair value as on the grant date calculated as per option pricing model. The grants
represent equity-settled options under the Employee Stock Option Plans and Stock Appreciation Rights Plans (hereafter referred
to as, “ESOP 2011” and “SAR 2019” or “ESOPs” “SARs”).
The Edelweiss Group has granted ESOPs under the two plans viz., ESOP 2011 SAR 2019 to its employees on an equity-settled
basis as tabulated below. The ESOPs/SARs provide a right to its holders (i.e., Edelweiss group employees) to purchase one EFSL
share for each option at a pre-determined strike price on the expiry of the vesting period. The ESOP/SAR hence represents an
European call option that provides a right but not an obligation to the employees of the Edelweiss group to exercise the option
by paying the strike price at any time on completion of the vesting period, subject to an outer boundary on the exercise period.
EFSL has granted stock options to employees of the Edelweiss group on an equity-settled basis as tabulated below.

Dates of grant Varying Varying
Option Type Equity settled Equity settled
No. of outstanding options at 31 March 2021 16,780,500 18,260,651
No. of outstanding options at 31 March 2020 11,230,000 21,126,689
No. of Equity shares represented by an option 1 share for 1 option 1 share for 1 option
Fair Value per option Varies as per the grant date Varies as per the grant date
Exercise Price Varies as per the grant date Varies as per the grant date
Vesting Period 2-6 years 1-4 years
Vesting Conditions Service Service
The vesting of options is subject to the employee’s continued employment with the Edelweiss group. The ESOPs shall vest as
follows:

Duration from grant date % options vesting % options vesting
12 months from the grant date 0% 25%
24 months from the grant date 33.33% 25%
Total 100% 100%
Plan description
Plan Name Grant Date Vesting Conditions Term of Options Payout
ESOP Plan 2011 Various As specified in tables above 1-4 years Equity settled
SAR Plan 2019 Various As specified in tables above 2-6 years Equity settled

Movement of number of Options for FY 2020-21 and 2019-20
2020-21 2019-20
Number of options
Outstanding at the start of the year 11,230,000 21,126,689 32,356,689 - 20,588,627 20,588,627
Granted during the year* 6,425,500 1,956,500 8,382,000 11,625,000 4,085,000 157,100,00
Exercised during the year - (1,970,150) (1,970,150) - (1,746,763) (1,746,763)
Lapsed/ cancelled during the year (875,000) (2,852,388) (3,727,388) (395,000) (1,800,175) (2,195,175)
Outstanding at the end of the year* 16,780,500 18,260,651 35,041,151 11,230,000 21,126,689 32,356,689
Exercisable at the end of the year - 11,542,051 11,542,051 - 11,241,676 11,241,676
*Includes, SAR 2019: 515,000, (Previous year SAR 2019: 515,000, ESOP 2011: 1,670,825) approved but not granted.
Weighted Average Exercise Price for FY 2020-21 and 2019-20
March 31, 2021 March 31, 2020

Weighted Average Exercise Price (₹)
SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Outstanding at the start of the year 178.75 131.80 NA 117.34
Granted during the year 61.00 61.00 180.26 168.04
Exercised during the year - 35.10 - 47.27
Lapsed/ cancelled during the year 166.29 161.03 180.65 127.91
Outstanding at the end of the year 132.90 132.00 178.75 131.80
Exercisable at the end of the year NA 110.14 NA 78.84
Weighted Average Share price at the exercise date NA 35.17 NA 47.61
Outstanding Options as at March 31, 2021 and March 31, 2020
March 31, 2021 March 31, 2020

SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Number of options outstanding 16,780,500 18,260,651 11,230,000 21,126,689
Weighted average strike price (₹) 132.90 132.00 178.75 131.80
Number of employees covered under the scheme 182.00 326.00 132 372
Options granted during FY 2020-21 and 2019-20
March 31, 2021 March 31, 2020

SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Number of options granted 6,425,500 1,956,500 11,625,000 4,085,000
Number of employees covered under the scheme 155.00 115.00 132.00 216.00
Weighted Average Fair value per option (in ₹) 28.23 27.24 85.08 81.21
Weighted Average Intrinsic value per option (in ₹) - - 1.44 9.03

Assumptions for Fair Value for FY 2020-21 and 2019-20
March 31, 2021 March 31, 2020

SAR 2019 ESOP 2011 SAR 2019 ESOP 2011
Weighted average share price (in ₹) 132.93 133.01 180.24 176.39
Weighted average remaining lifetime of options
2.70 0.45 3.18 0.54
(in years)
Expected volatility (% p.a.) 56% - 72% p.a. 35% - 72% p.a. 56% - 62% p.a. 56% - 62% p.a.
Risk-free discount rate (% p.a.) 4.3% - 6.9% p.a. 4.3% - 8.5% p.a. 5.4% - 6.9% p.a. 5.4% - 6.8% p.a.
Expected dividend yield (% p.a.) 0.7% - 2.4% p.a. 0.4% - 3.1% p.a. 0.66% - 0.67% p.a. 0.66% - 0.67% p.a.
Other Disclosures
March 31, 2021 March 31, 2020

Charges during the year due to share based
195.72 139.42 335.14 148.93 242.03 390.96
payments
Changes in fair value of share based payments
- - - - - -
due to any modifications made during the year
Liability due for share based payments 344.64 783.64 1,128.28 148.93 669.25 818.18
Intrinsic value of the liability above 6.51 33.76 40.27 - - -
39. Capital commitment
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) ₹ Nil (Previous
year: ₹ 0.92 million).
40. Contingent liabilities
a) Claims against the Company not acknowledged as debt:

i) Income tax matters in respect of which appeal is pending is ₹ 11.30 million for the year (Previous year: ₹ 11.30
million).
ii) Service tax matters in respect of which appeal is pending is ₹ 534.36 million for the year (Previous year: ₹ 534.36
million).
b) Other claim not acknowledged as debt:
The Company’s pending litigations mainly comprise of claims against the Company pertaining to proceedings pending
with Income tax, service tax and other authorities. The Company has reviewed all its pending litigations and proceedings
and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in
the financial statements. The Company believes that the outcome of these proceedings will not have a materially adverse
effect on the Company’s financial position and results of operations.
The Company has received demand notices from tax authorities on account of disallowance of expenditure for earning
exempt income under Section 14A of Income Tax Act 1961 read with Rule 8D of the Income Tax Rules, 1962. The company
has filed appeal/s and is defending its position. Based on the favorable outcome in Appellate proceedings in the past and
as advised by the tax advisors, company is reasonably certain about sustaining its position in the pending cases, hence the
possibility of outflow of resources embodying economic benefits on this ground is remote.
40. Contingent liabilities (Continued)
c) Corporate/other guarantee not acknowledged as debt:
Corporate/other guarantee given by the Company on behalf of its subsidiaries and associate companies and to third party
which is outstanding as at March 31, 2021 and March 31, 2020 is given below:
Sr.
Nature of Guarantee 2021 2020
No
1 Guarantee to trustees of non convertible debentures holders 26,707.50 34,124.10
2 Guarantee to Banks for loan taken by subsidiaries and associates 11,465.18 21,330.00
3 Guarantee given to investors for loan sold by subsidiary Company to
- 35,570.00
Asset Re-construction Company
Total 38,172.68 91,024.10
41. Details of dues to micro, small and medium enterprises
Trade Payables includes ₹Nil (Previous year: ₹ 0.90) payable to “Suppliers” registered under the Micro, Small and Medium
Enterprises Development Act, 2006. Interest paid by the Company during the year to “Suppliers” registered under this Act is
₹ 0.003 million (Previous year: ₹ Nil). The aforementioned is based on the responses received by the Company to its inquiries
with suppliers with regard to applicability under the said Act.
42. Disclosure of loans and advances given pursuant to requirements of Regulation 34(3) of Securities and Exchange Board of India
(Listing Obligation and Disclosure Requirements) Regulations, 2015.
Sr. Entity 2021 2020

no. Loan Maximum Loan Maximum
outstanding amount outstanding amount
outstanding outstanding
during the year during the year
1 Edelweiss Rural and Corporate Services Limited 2,248.21 7,735.33 - 6.20
2 Edelweiss Finance & Investments Limited 3,362.32 3,362.32 - -
3 ECL Finance Limited 3,801.68 3,801.68 - -
4 Edelweiss Global Wealth Management Limited 152.76 250.00 - -
5 Edel Land Limited 791.89 790.00 - -
6 Edel Finance Company Limited 2,117.27 2,117.28 - -
7 Ecap Equities Limited - 15,487.85 - -
8 Edelweiss Capital (Singapore) Pte. Limited - - - 2,019.05
9 EC International Limited - - - 384.62
Total 12,474.13 33,544.46 - 2,409.87
All the above loans are repayable on demand as per contracted terms.
43. Capital Management
The Company manages the capital structure by a balanced mix of debt and equity. The Company’s capital management strategy
is to effectively determine, raise and deploy capital so as to create value for its shareholders. The Company maintains sound
capitalisation both from an economic and regulatory perspective. The Company continuously monitors and adjusts overall capital
demand and supply in an effort to achieve an appropriate balance of the economic and regulatory considerations at all times and
from all perspectives. These perspectives include specific capital requirements from rating agencies.

43. Capital Management (Continued)
Capital structure includes infusion in the form of equity and structured debt from strategic business partners in certain of
Company’s subsidiaries to fund expansion and assist in achieving expected growth in the competitive market.
No changes were made in the objectives, policies or processes during the financial years ended March 31, 2021 and March 31,
2020.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market
conditions and interest rates environment. Company monitors capital using debt-equity ratio, which is total debt divided by total
equity.
As at As at
Particulars
March 31, 2021 March 31, 2020
Total Debt 8,380.11 1,466.63
Equity 41,259.88 34,545.70
Net Debt to Equity 0.20 0.04
44. Risk management
The Company has operations in India. Whilst risk is inherent in the Company’s activities, it is managed through an integrated
risk management framework, including ongoing identification, measurement and monitoring, subject to risk limits and other
controls. This process of risk management is critical to the Company’s continuing profitability. The Company is exposed to credit
risk, liquidity risk and market risk. It is also subject to various operating and business risks.
Risk management structure
The Board of Directors are responsible for the overall risk management approach and for approving the risk management
strategies and principles.
The Board has appointed the Risk Committee which is responsible for monitoring the overall risk process within the Company
and reports to the Audit Committee.
The Risk Committee has the overall responsibility for the development of the risk strategy and implementing principles,
frameworks, policies and limits.
The Company is responsible for implementing and maintaining risk related procedures to ensure an independent control process
is maintained. The Company works closely with and reports to the Risk Committee, to ensure that procedures are compliant with
the overall framework.
Credit risk
Credit risk is the risk of financial loss the Company may face due to current/potential inability or unwillingness of a customer or
counterparty to meet financial /contractual obligations. Credit risk also covers the possibility of losses associated with diminution
in the credit quality of borrowers or counterparties. The Company has adopted a policy of dealing with creditworthy counterparties
and obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.
Credit risk is measured as the amount that could be lost if a customer or counterparty fails to make repayments. Credit risk
is monitored using various internal risk management measures and within limits approved by the board within a framework
of delegated authorities. It is managed through a robust risk control framework, which outlines clear and consistent policies,
principles and guidance for risk managers. Presently Company has credit exposure only to it’s subsidiaries where adequate control
and monitoring is ensured.

44. Risk management (Continued)
Liquidity risk
Liquidity risk emanates from the possible mismatches due to differences in maturity and repayment profile of assets and liabilities.
To avoid such a scenario, the Company has maintained cash reserves in the form of Fixed Deposits, Cash, Loans which are callable
any time at the Company’s discretion, etc. These assets carry minimal credit risk and can be liquidated in a very short period of
time. These would be to take care of immediate obligations while continuing to honour commitments as a going concern.
Analysis of financial assets and liabilities by remaining contractual maturities
The table below at note number 47 summarises the maturity profile of the undiscounted cash flows of the Company’s financial
assets and liabilities as at March 31. All OTC derivatives used for hedging are shown by maturity, based on their contractual
undiscounted payment obligations. All exchange traded derivatives held for trading are analyzed based on expected maturity.
Market Risk:
Market risk is the risk which can affect the Company’s profit/(loss) due to adverse movements in market prices of instrument due
to interest rates, equity prices, foreign exchange rates. The objective of the Company’s market risk management is to manage
and control market risk exposures within acceptable parameters.
Foreign exchange risk – Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes
in foreign exchange rates. The Company’s foreign exposure is limited to investments and loans to Group entities outside India.
The Company aggregates the foreign exchange exposure emerging out of these loans and the same is hedged using OTC and
exchange traded derivatives. Positions are regularly monitored by the Company and rebalanced/ rolled over based on the inflow
and outflow of funds.
Currency 2020-21
currency rate (%) profit before tax currency rate (%) profit before tax
USD 5 (43.53) 5 43.53
Currency 2019-20
currency rate (%) profit before tax currency rate (%) profit before tax
USD 5 (20.95) 5 20.95
45. Fair Value measurement:
A. Valuation governance framework
Where fair values are determined by reference to externally quoted prices or observable pricing inputs to models,
independent price determination or validation is used. For inactive markets, Company sources alternative market
information, with greater weight given to information that is considered to be more relevant and reliable.
B. Fair value hierarchy
Fair values of financial assets and liabilities are determined according to the following hierarchy
Level 1 – valuation technique using quoted market price: financial instruments with quoted prices for identical instruments
in active markets that company can access at the measurement date.

45. Fair Value measurement: (Continued)
B. Fair value hierarchy (Continued)
Level 2 – valuation technique using observable inputs: Those where the inputs that are used for valuation and are significant,
are derived from directly or indirectly observable market data available over the entire period of the instrument’s life.
Level 3 – valuation technique with significant unobservable inputs: Those that include one or more unobservable input
that is significant to the measurement as whole.
C. Financial instruments not measured at fair value:
Carrying amounts of cash and cash equivalents, trade receivables, loans and trade and other payables as on March 31,
2021 approximate the fair value because of their short-term nature. Difference between carrying amounts and fair values
of bank deposits, other financials assets, other financial liabilities and borrowings subsequently measured at amortised
cost is not significant in each of the years presented.
D. The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy
As at March 31, 2021 Level 1 Level 2 Level 3 Total

Derivative financial instruments
Exchange-traded derivatives 6.15 - - 6.15
Total derivative financial instruments - A 6.15 - - 6.15
Investments
Equity instruments 2.04 25.36 - 27.40
Total investments measured at fair value - B 2.04 25.36 - 27.40
Total (A+B) 8.19 25.36 - 33.55

OTC derivatives - - - -
Total derivative financial instruments 0.03 - - 0.03
0.03 - - 0.03


D. The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy
(Continued)
As at March 31, 2020 Level 1 Level 2 Level 3 Total

Exchange-traded derivatives - - - -
Total derivative financial instruments - A - - - -
Investments
Equity instruments 0.80 23.15 - 23.95
Total investments measured at fair value - B 0.80 23.15 - 23.95
Total (A+B) 0.80 23.15 - 23.95

Total derivative financial instruments 1.89 - - 1.89
1.89 - - 1.89
E. There have been no transfers between levels during the year ended March 31, 2021 and March 31, 2020.
Note :
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal
(or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of
whether that price is directly observable or estimated using a valuation technique. The Company uses valuation techniques that
are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.
The Company’s fair value methodology and the governance over its models includes a number of controls and other procedures
to ensure appropriate safeguards are in place to ensure its quality and adequacy. Where fair values are determined by reference
to externally quoted prices or observable pricing inputs to models, independent price determination or validation is used. For
inactive markets, Company sources alternative market information, with greater weight given to information that is considered
to be more relevant and reliable.
Unquoted equity instruments:
Equity instruments in non-listed entities are re-measured at each reporting date at valuation provided by external valuer at
instrument level.
Derivatives:
The Company enters into certain derivative financial instruments primarily with banks with investment grade credit ratings.
Derivatives valued using valuation techniques with market observable inputs are mainly forward exchange contracts.

Exchange traded derivatives:
Company has entered into certain exchange-traded currency futures. The Company uses latest traded prices at the reporting
date to value these derivatives and classifies these instruments as Level 1 in the hierarchy.
46. Maturity Analysis of assets and liabilities
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or
settled.
Particulars As at March 31, 2021 As at March 31, 2020
Within 12 After 12 Within 12 After 12
Total Total
months months months months
Financial Assets
Cash and cash equivalents 1,481.81 - 1,481.81 13.66 - 13.66
Bank balances other than cash and cash 8.19 - 8.19 9.55 - 9.55
equivalents
Trade receivables 191.00 - 191.00 316.80 - 316.80
Loans 12,472.43 - 12,472.43 6.73 - 6.73
Investments 2,137.19 41,680.13 43,817.32 8,338.58 26,334.29 34,672.87
Other financial assets 304.72 324.63 629.35 317.42 378.00 695.42
Current tax assets (net) - 688.06 688.06 - 618.59 618.59
Deferred tax assets (net) - 378.08 378.08 - 291.13 291.13
Property, Plant and Equipment - 5.99 5.99 - 8.36 8.36
Intangible assets under development - - - - 9.16 9.16
Other Intangible assets - 1.19 1.19 - 16.83 16.83
Other non- financial assets - 135.88 135.88 - 133.78 133.78
Total Assets 16,595.34 43,213.96 59,809.30 9,002.74 27,790.15 36,792.88
Financial Liabilities
Trade payables 2,354.43 - 2,354.43 53.35 - 53.35
Debt securities 234.81 7,054.14 7,288.95 734.12 - 734.12
Borrowings (other than debt securities) 1,091.16 - 1,091.16 732.51 - 732.51
Other financial liabilities 855.04 5,986.44 6,841.48 220.50 356.59 577.09
Current tax liabilities (net) - 7.26 7.26 - 69.84 69.84
Provisions 845.81 - 845.81 1.36 7.72 9.08
Other non-financial liabilities 120.33 - 120.33 71.19 - 71.19
Total Liabilities 5,501.58 13,047.84 18,549.42 1,813.03 434.15 2,247.18
Net 11,093.76 30,166.12 41,259.88 7,189.71 27,356.00 34,545.70

Note :
The Company in addition to generating operating income from merchant banking activities, is also a holding Company of
profitable subsidiaries involved in diviersified businesses and receives dividend distribution at regular interval and will be
comfortably able to meet it's obligations at all points of time.

47. Remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company’s financial assets and liabilities
as at 31 March. All OTC derivatives used for hedging are shown by maturity, based on their contractual undiscounted payment
obligations. All exchange traded derivatives held for trading are analyzed based on expected maturity.
A. Analysis of non-derivative financial liabilities and assets by remaining contractual maturities

As at March 31, 2021 Up to 3 3 months Equal to or Equal to or Over 3 Total
months to 6 more than more than years
months 6 months 12 months
but less but less
than 12 than 3
months years
Trade payables 2,354.43 - - - - 2,354.43
Debt securities 57.09 52.02 125.71 2,423.92 4,630.22 7,288.95
Borrowings other than debt securities 1,091.16 - - - - 1,091.16
Other financial liabilities 855.04 - - 5,986.44 - 6,841.48
Total undiscounted non-derivative 4,357.72 52.02 125.71 8,410.36 4,630.22 17,576.02

but less but less
than 12 than 3
months years
Cash and cash equivalent and other bank 1,490.00 - - - - 1,490.00
balances
Trade receivables 191.00 - - - - 191.00
Loans 12,472.43 - - - - 12,472.43
Investments at fair value through profit 2,137.19 - - - 41,680.13 43,817.32
or loss
Other financial assets 304.72 - - 324.63 - 629.35
Total undiscounted non-derivative 16,595.34 - - 324.63 41,680.13 58,600.10
financial assets
As at March 31, 2020 Up to 3 3 months Equal to or Equal to Over 3 Total

months to 6 more than or more years
months 6 months than 12
but less months but
than 12 less than 3
months years
Trade payables 53.35 - - - - 53.35
Debt securities 734.12 - - - - 734.12
Borrowings other than debt securities 732.51 - - - - 732.51
Other financial liabilities 577.09 - - - - 577.09
Total undiscounted non-derivative 2,097.07 - - - - 2,097.07

47. Remaining contractual maturities (Continued)

A. Analysis of non-derivative financial liabilities and assets by remaining contractual maturities (Continued)
but less months but
than 12 less than 3
months years
Cash and cash equivalent and other bank 23.21 - - - - 23.21
balances
Trade receivables 316.80 - - - - 316.80
Loans 6.73 - - - - 6.73
Investments at fair value through profit 8,338.58 - - - 26,334.29 34,672.87
or loss
Other financial assets 317.42 - - 378.00 - 695.42
Total undiscounted non-derivative 9,002.74 - - 378.00 26,334.29 35,715.03
financial assets
Note :
The Company in addition to generating operating income from merchant banking activities, is also a holding Company of profitable
subsidiaries involved in diversified businesses and receives dividend distribution at regular interval and will be comfortably able to meet
it's obligations at all points of time.
B. Maturity analysis for derivatives:

All derivatives which are entered into for trading purposes are shown in the earliest time band. With respect to other
derivatives, the remaining contractual maturity information has been given based on undiscounted cash flows.

but less but less
than 12 than 3
months years
Net settled derivatives entered into for 6.12 - - - - 6.12
trading purposes
Other net settled derivatives (other than - - - - - -
those entered into for trading purposes)
Total 6.12 - - - - 6.12

but less months but
than 12 less than 3
months years
Net settled derivatives entered into for (1.89) - - - - (1.89)
trading purposes
Other net settled derivatives (other than - - - - - -
those entered into for trading purposes)
Total (1.89) - - - - (1.89)

47. Remaining contractual maturities (Continued)

C. The table below shows the contractual expiry by maturity of the Company’s contingent liabilities and commitments.
but less but less
than 12 than 3
months years
Financial guarantee contracts issued - - - 38,172.68 - 38,172.68
Total - - - 38,172.68 - 38,172.68

but less months but
than 12 less than 3
months years
Financial guarantee contracts issued - - - 91,024.10 - 91,024.10
Total - - - 91,024.10 - 91,024.10
Note :
1) The Company has undrawn line of credit amounting to ₹.Nil as at March 31, 2021 (previous year ₹.Nil).
2) Outstanding Guarantees issued by the Company are reflected in the respective time bucket as these could be invoked
any time on the Company.
48. Other Ind AS 115 disclosures -Revenue from contract with customers
Set out below is the disaggregation of the revenue from contracts with customers.
Type of Services or service March 31, 2021 March 31, 2020
Advisory fees 991.19 959.81
Total revenue from contracts with customers

Geographical markets
India 967.40 954.76
Outside India 23.79 5.05
Total revenue from contracts with customers 991.19 959.81
Timing of revenue recognition

Services transferred at point in time 991.19 959.81
Services transferred over time - -
Total revenue from contract with customers 991.19 959.81
Note :
The Company satisfies its performance obligations on completion of service with regards to investment banking, advisory and other fees.
The payments on these contracts is due on completion of service, the contracts do not contain a significant financing component and the
consideration is not variable.
Further, at the end of the reporting period, there are no unsatisfied performance obligations with respect to existing contracts.

49. Total market risk exposure

Fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates,
foreign exchange rates and equity prices. The Company classifies exposures to market risk into either trading or non–trading
portfolios and manages each of those portfolios separately. Such risks the market risk for the trading portfolio is managed and
monitored based on a VaR methodology that reflects the interdependency between risk variables. Non–trading positions are
managed and monitored using other sensitivity analyses.

Particulars Carrying Non-traded Carrying Non-traded
Traded risk Traded risk
amount risk amount risk
Assets
Cash and cash equivalent and other bank
1,490.00 - 1,490.00 23.21 - 23.21
balances
Trade receivables 191.00 - 191.00 316.80 - 316.80
Loans at amortised cost 12,472.43 - 12,472.43 6.73 - 6.73
Financial investments– FVTPL 27.40 27.40 - 23.95 23.95 -
Financial investments– at cost 43,789.92 - 43,789.92 34,648.92 - 34,648.92
Other Financial assets 629.35 - 629.35 695.42 15.28 680.14
Total 58,600.10 27.40 58,572.70 35,715.03 39.23 35,675.80
Liability
Borrowings (other than debt securities) 1,091.16 - 1,091.16 732.51 - 732.51
Derivative financial instruments - - - - - -
Debt securities 7,288.95 - 7,288.95 734.12 - 734.12
Trade payables 2,354.43 - 2,354.43 53.35 - 53.35
Other financial liabilities 6,841.48 - 6,841.48 577.09 - 577.09
Total 17,576.02 - 17,576.02 2,097.07 - 2,097.07
50. Disclosure related to collateral

Following table sets out availability of Company's assets to support funding
Pledge as Available as Total carrying
collateral collateral amount
Cash and cash equivalent including bank balance - 647.78 647.78
Trade receivables 191.00 - 191.00
Loans 3,811.57 8,660.86 12,472.43
Investments 448.64 43,368.68 43,817.32
Other financial assets - 304.72 304.72
Property, plant and equipment - 5.99 5.99
Other non financial assets - 135.88 135.88
Total assets 4,451.21 53,123.91 57,575.12
Pledge as Available as Total carrying

collateral collateral amount
Cash and cash equivalent including bank balance - 23.21 23.21
Trade receivables - 316.80 316.80
Loans - 6.73 6.73
Investments - 34,672.87 34,672.87
Other financial assets - 338.83 338.83
Property, plant and equipment - 8.36 8.36
Capital work in progress - 9.16 9.16
Other non financial assets - 133.78 133.78
Total assets - 35,509.74 35,509.74

51. Analysis of risk concentration

Industry analysis - risk concentration for March 31, 2021
Particulars Financial services Others Total
Financial assets
Cash and cash equivalent and other bank balances 1,490.00 - 1,490.00
Loans 12,472.43 - 12,472.43
Investments 43,817.32 - 43,817.32
Other financial assets 629.35 - 629.35
Total 58,600.10 - 58,600.10
Industry analysis - risk concentration for March 31, 2020

Particulars Financial services Others Total
Financial assets
Cash and cash equivalent and other bank balances 23.21 - 23.21
Loans 6.73 - 6.73
Investments 34,672.87 - 34,672.87
Other financial assets 695.42 - 695.42
Total 35,715.03 - 35,715.03
52. The COVID-19 pandemic outbreak across the world including India has resulted in most countries announcing lockdowns and
quarantine measures that have sharply stalled economic activities across the world. The Indian Government too has imposed
lockdowns starting from 24 March 2020. Subsequently, the national lockdown was lifted by the government for certain activities
in a phased manner outside specified containment zones, but regional lockdowns/restrictions continued to be implemented in
areas with a significant number of COVID-19 cases. The Indian economy is impacted and would continue to be impacted by this
pandemic and the resultant lockdown, due to the contraction in industrial and services output across small and large businesses.
The impact of the COVID-19 pandemic, including the current “second wave” on Company’s results, including gain/loss on fair
value changes, investment, remains uncertain and dependent on the current and further spread of COVID-19, steps taken by the
government and other regulators to mitigate the economic impact and also the time it takes for economic activities to resume
and reach the normal levels. Further, the Company has assessed the impact of the COVID-19 pandemic on its liquidity and ability
to repay its obligations as and when they are due. Management has considered various financial support from banks and other
fundraising opportunities in determining the Company’s liquidity position over the next 12 months. Based on the foregoing and
necessary stress tests considering various scenarios, management believes that the Company will be able to pay its obligations
as and when these become due in the foreseeable future. In assessing the recoverability of loans, receivables, deferred tax assets
and investments, the Company has considered internal and external sources of information, including credit reports, economic
forecasts and industry reports up to the date of approval of these financial results. Since the situation continue to evolve, its effect
on the operations of the Company may be different from that estimated as at the date of approval of these financial results. The
Company will continue to closely monitor material changes in markets and future economic conditions.
53. During the year ended 31 March 2021, EFSL sold its controlling stake in Edelweiss Securities Limited to Edelweiss Global Wealth
Management Limited (wholly owned subsidiary), in accordance with the transaction consummated with PAGAC ECSTACY PTE.
LTD (PAG), a private investment firm. The difference between the carrying value of equity sold and proceeds received on sale
have been accounted for as a gain amounting to ₹ 15,378.70 million in the statement of profit and loss as ‘other income’.

54. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material
foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/
accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made
in the books of accounts.
55. Under the Shareholders’ Agreement dated 05 March 2019, entered between Edelweiss Financial Services Limited (EFSL), CDPQ
Private Equity Asia PTE. Limited (CDPQ) and ECL Finance Limited (together referred as Parties), EFSL had agreed, pursuant to
clause 8.1 & 8.2 to make equity investment of an amount equivalent to the amount of losses on Select real estate/structured
finance Loans (Select Loans) into ECL Finance Limited within six months of the default leading to loss incurred by the ECL Finance
Limited on or before the date of the conversion of the Investor CCDs into Equity Shares. The rationale for this undertaking was to
keep the total equity/net worth of ECL Finance Limited unimpacted on account of impairment in these loan accounts. During the
year ended 31 March 2021, Parties have agreed and concluded that loss event for two of the borrowers in the Select Loans have
crystalized and hence, EFSL has agreed to make good the loss amounting to ₹ 1,400.10 million incurred by ECL Finance Limited
in earlier years. Accordingly, EFSL has recorded such loss in its profit and loss for the year ended 31 March 2021. The Parties have
agreed that no loss event has been crystalized in respect of other Select Loans amounts mentioned in above said clauses of the
agreement and hence there is no obligation EFSL has as at 31 March 2021.
56. During earlier years and for the year ended 31 March 2021, four subsidiaries of the Company had sold certain financial assets
amounting to ₹ 61,568.90 million (net of provisions) and ₹ 10,711.50 million (net of provisions) respectively to various asset
reconstructions company trusts (‘ARC Trusts’) and acquired security receipts (SR) amounting to ₹ 49,858.40 million and ₹ 8,801.10
million respectively from these ARC Trusts. Ind AS 109 – ‘Financial Instruments’, prescribed under section 133 of the Companies
Act, 2013, requires substantially all risks and rewards to be transferred for the purpose of de-recognition of such financial assets
from these subsidiaries’ financial statements. The Company and Edelweiss Rural and Corporate Services Limited (ERCSL), another
subsidiary, had undertaken substantially all risks and rewards in respect of such financial assets. As a result, these financial assets
were de-recognized in subsidiaries’ financial statements.
Based on a review performed by management of these subsidiaries and the Company, with effect from 01 January 2021, has
directly undertaken substantially all risks and rewards and consequently ERCSL is relieved of its obligations. Further and pursuant
to such review, with effect from 01 January 2021, certain terms and conditions of risk and reward agreements have been amended.
The Board of Directors of subsidiaries, ERCSL and the Company in their respective meetings held on 04 June 2021, 10 June 2021
and 11 June 2021 have approved such changes to risk and reward agreements.
During the year ended 31 March 2021, the Company re-assessed probability of default, loss given default in respect of these
financial assets and in light of various factors viz. operational challenges for exposures to certain sectors, increase in credit and
market risks for certain counter parties relative to such risks at initial recognition, continued impact of COVID-19 factors. Such re-
assessments resulted in recognition of higher amount of loss on fair value changes for the year ended 31 March 2021. Accordingly,
the Company has recorded for the year ended 31 March 2021 an amount of ₹ 4,426.30 million towards net loss as substantially
all risks and rewards are undertaken by the Company. Accordingly, profit before tax of the Company for the year ended 31 March
2021 is lower by ₹ 4,426.30 million.
57. Pursuant to amendments in risk and rewards agreement between the subsidiaries, ERCSL and the Company (as mentioned in
note above), with effect from 01 January 2021, fees payable on security receipts (ARC Fee) has been agreed to be borne by the
Company, as the risk and rewards are undertaken by the Company. Accordingly, an amount of ₹ 489.25 million towards such
expenses have been recorded by the Company. Accordingly, profit before tax of the Company for the year ended 31 March 2021
is lower by ₹ 489.25 million.

58. The Board of Directors at their meeting held on 11 June 2021, have recommended a final dividend of ₹ 0.55 per equity share (on
face value of ₹ 1 per equity share), subject to the approval of the members at the ensuing Annual General Meeting.
59. The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and the Gratuity Act
and rules there under. The Ministry of Labour and Employment has also released draft rules thereunder on 13 November 2020
and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will evaluate
the rules, assess the impact if any, and account for the same once the rules are notified and become effective.
60. Previous year figures have been reclassified to conform to this year’s classification..
61. All amounts disclosed in the financial statements and notes have been rounded off to the nearest million as per the requirements
of Schedule III, unless otherwise stated.
62. These financial statements have been approved for issue by the Board of Directors of the Company on June 11, 2021.
The accompanying notes are an integral part of financial statements.



Form AOC-I
(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)
Statement containing salient features of the financial statements of subsidiaries/ associate companies/ joint ventures
Part “A”: Subsidiaries

Name of the Subsidiary Company ECL Finance Edelcap Edelweiss ECap Equities Edelweiss Edelweiss Edelweiss EC Commodity Edel Land Edel
Limited Securities Asset Limited Trusteeship Housing Investment Limited Limited Investments
Limited Management Company Finance Adviser Limited
Limited Limited Limited Limited
Reporting currency INR INR INR INR INR INR INR INR INR INR
Exchange rate
Paid-up Equity Share Capital 2,138.27 3.00 733.43 4,007.40 1.00 693.50 1,005.50 300.00 783.89 350.22
Reserves of the Subsidiary 22,685.03 516.41 878.58 (2,893.93) 3.93 6,934.38 (8,938.67) (453.09) (707.70) 2,249.13
Total Assets of the Subsidiary 189,790.72 7,891.87 1,971.97 38,003.71 5.99 49,311.00 6,003.19 1,126.38 4,129.91 2,976.91
Total Liabilities of the Subsidiary 164,967.42 7,372.46 359.96 36,890.24 1.06 41,683.12 13,936.36 1,279.47 4,053.73 377.56
Investments 55,676.11 2,733.99 747.11 18,449.47 4.56 1,600.86 - 19.51 829.07 2,348.12
Total Turnover 20,120.44 1,628.09 1,204.07 12,086.34 1.86 5,510.54 (2,833.39) 372.36 1,777.26 116.90
Profit/(Loss) before taxation (1,601.07) (483.46) 47.82 (4,392.73) 0.21 (80.72) (5,067.32) (89.70) (378.17) 20.28
Provision for taxation (1,623.42) 93.25 - (360.85) 0.04 (118.01) 213.57 (3.91) (122.79) 14.09
Profit/(Loss) after taxation 22.35 (576.71) 47.82 (4,031.88) 0.16 37.29 (5,280.88) (85.79) (255.38) 6.19
Proposed dividend - - - - - - - - - -
% of shareholding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Form AOC-I
Part “A”: Subsidiaries (Continued)

Name of the Subsidiary Company Edelweiss Edelweiss Edel Finance Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss EC EAAA LLC
Rural & Comtrade Company Retail Finance Multi Strategy Resolution General Securities and International
Corporate Limited Limited Limited Fund Advisors Advisors LLP Insurance Investments Limited
Services LLP Company Private
Limited Limited Limited

Reporting currency INR INR INR INR INR INR INR INR USD USD
Exchange rate 73.50 73.50
Paid-up Equity Share Capital 9,897.75 290.00 7,216.75 429.50 5.97 0.10 3,930.00 1.57 6.20 62.47
Reserves of the Subsidiary (5,360.03) (273.75) 5,143.10 4,469.76 1.78 0.62 (2,739.05) 787.58 (107.20) (37.92)
Total Assets of the Subsidiary 44,739.01 37.17 30,418.47 15,184.83 7.96 0.73 4,277.72 1,426.31 219.99 28.44
Total Liabilities of the Subsidiary 40,201.29 20.91 18,058.62 10,285.57 0.21 0.02 3,086.77 637.16 320.99 3.89
Investments 13,079.57 - 20,040.21 957.91 - - 3,429.52 950.47 219.74 0.00
Total Turnover 7,666.16 5.35 1,877.84 2,500.73 0.80 6.08 2,046.40 813.54 381.98 6.09
Profit/(Loss) before taxation (8,899.47) (13.51) (1,484.05) 329.60 (16.58) 5.94 (910.34) 73.86 266.86 (26.05)
Provision for taxation 275.71 1.56 (242.49) 61.05 (0.48) 0.98 - 45.04 0.82 0.00
Profit/(Loss) after taxation (9,175.18) (15.06) (1,241.56) 268.55 (16.09) 4.96 (910.34) 28.82 266.03 (26.05)
% of shareholding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Form AOC-I

Name of the Subsidiary Company Edelweiss Edelweiss Aster Edelgive Edelweiss Edelweiss Edelweiss Edelweiss Edelweiss Asset EW Special
Alternative International Commodities Foundation Alternative Gallagher Private Equity Value and Reconstruction Opportunities
Asset Advisors (Singapore) DMCC Asset Advisors Insurance Tech Fund Growth Fund Company Advisors LLC
Pte. Limited Pte. Limited Limited Brokers Limited
Limited
Reporting currency SGD USD AED INR INR INR INR INR INR USD
Exchange rate 54.39 73.50 19.91 73.50
Paid-up Equity Share Capital 446.64 2,063.31 133.73 104.20 1,223.75 52.86 263.40 908.15 2,437.26 21.27
Reserves of the Subsidiary 28.93 (185.33) 63.47 130.76 (212.19) 1,251.75 351.92 603.64 19,782.60 (20.76)
Total Assets of the Subsidiary 972.45 2,643.15 206.82 348.49 1,266.25 2,455.91 615.70 1,513.22 59,327.70 1.19
Total Liabilities of the Subsidiary 496.88 765.17 9.61 113.53 254.68 1,151.31 0.37 1.43 37,107.84 0.69
Investments 0.47 74.34 - 15.83 195.90 502.63 610.69 1,513.17 47,730.67 0.01
Total Turnover 495.93 673.04 0.43 598.86 1,444.54 631.07 (16.17) 4.65 8,673.82 -
Profit/(Loss) before taxation 11.37 350.93 (34.03) 97.39 148.52 172.63 (17.69) 0.73 2,452.25 (2.76)
Provision for taxation 1.40 4.58 - - (5.43) 26.69 - 0.00 595.93 -
Profit/(Loss) after taxation 9.97 346.35 (34.03) 97.39 153.94 145.95 (17.69) 0.73 1,856.32 (2.76)
% of shareholding 100% 100% 100% 100% 99.05% 70.00% 95.60% 70.05% 59.84% 67.00%

Form AOC-I

Name of the Subsidiary Company Edelweiss Allium Finance Edelweiss Edelweiss India Credit
Tokio Life Private Global Wealth Capital Investment
Insurance Limited Management Services Fund II
Company Limited Limited
Limited

Reporting currency INR INR INR INR INR
Exchange rate
Paid-up Equity Share Capital 3,126.21 68.26 22,274.00 520.00 3,177.93
Reserves of the Subsidiary 2,235.68 950.51 411.01 (16.22) 1.54
Total Assets of the Subsidiary 52,213.00 1,023.26 23,447.15 509.04 3,183.05
Total Liabilities of the Subsidiary 46,851.11 4.49 1,584.16 5.26 3.57
Investments 41,147.00 186.60 21,969.59 - 3,180.26
Total Turnover 18,664.00 96.27 333.99 1.47 2.74
Profit/(Loss) before taxation (2,067.00) 90.82 (215.09) (16.02) 1.75
Provision for taxation 0.00 23.74 (14.76) - -
Profit/(Loss) after taxation (2,067.00) 67.07 (200.33) (16.02) 1.75
Proposed dividend - - - - -
% of shareholding 51.00% 70.00% 100% 51.00% 100%
For and on behalf of the Board of Directors
Rashesh Shah Chairman, Managing Director & CEO DIN: 00008322

Himanshu Kaji Executive Director DIN: 00009438
Sarju Simaria Chief Financial Officer

Tarun Khurana SVP & Company Secretary
Mumbai
June 11, 2021
Form AOC-I
Part "B": Associates
Sr Name of the Associate Edelweiss Securities Limited

No
1 Latest Audited Balance sheet date 31-Mar-21
2 Share of Associate held by the Company on the year end
No. 1,35,00,300
Amount of Investment in Associates (` in millions) 124.52
Extend of Holding % 38.53%
3 Reason why the associate is not consolidated No Control
4 Networth attributable to Shareholding as per latest audited BalanceSheet (` in millions) 5,517.91
5 Profit / Loss for the year
i. Considered in Consolidation (6.35)
ii. Not Considered in Consolidation 641.31
For and on behalf of the Board of Directors
Rashesh Shah Chairman, Managing Director & CEO DIN: 00008322

Himanshu Kaji Executive Director DIN: 00009438
Sarju Simaria Chief Financial Officer

Tarun Khurana SVP & Company Secretary
Mumbai
June 11, 2021

Annexure II
Form AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies
Act, 2013 including certain arm’s length transactions under third proviso thereto:
I. Details of contracts or arrangements or transactions not at arm’s length basis: Not Applicable
Sr. Name(s) of the Nature of Duration of Salient terms of Justification for Date of approval Amount paid as Date on which the

No. related party contracts/ the contracts/ the contracts or entering into by the Board advances, if any special resolution
and nature of arrangements/ arrangements/ arrangements such contracts or was passed in general
relationship transactions transactions or transactions arrangements or meeting as required
including the transactions under first proviso to
value, if any section 188
- - - - - - - - -
II. Details of material contracts or arrangement or transactions at arm’s length basis:

Sr. Name(s) of the related party and Nature of contracts/arrangements/ Duration of Salient terms of Date of approval Amount paid
No. nature of relationship transactions the contracts/ the contracts or as advances,
arrangements/ arrangements if any
transactions or transactions
including the value,
if any
1 Edelweiss Securities Limited Sale of securities - 3,837.40 February 14, 2020 -
2 Edel Finance Company Limited Sale of securities - 1,654.97 February 14, 2020 -
3 Edelweiss Global Wealth Management Limited Sale of securities - 15,495.91 February 14, 2020 -
4 ECap Equities Limited Purchase of securities - 4,100.76 February 14, 2020 -
5 Edelweiss Securities Limited Purchase of securities - 714.13 February 14, 2020 -
6 Edel Finance Company Limited Purchase of securities - 6,706.17 February 14, 2020 -
7 Edel Land Limited Purchase of Securities - 922.46 February 14, 2020 -
8 ECL Finance Limited Management and advisory fees paid - 669.15 February 14, 2020 -

Rashesh Shah
DIN: 00008322
Notice
NOTICE OF THE 26TH ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT THE 26th ANNUAL GENERAL MEETING OF THE MEMBERS OF
EDELWEISS FINANCIAL SERVICES LIMITED WILL BE HELD ON FRIDAY, SEPTEMBER 3, 2021 AT
4.00 P.M. (IST) THROUGH VIDEO CONFERENCING OR OTHER AUDIO VISUAL MEANS (OAVM) TO TRANSACT
THE FOLLOWING BUSINESS:
ORDINARY BUSINESS:
1. To consider and adopt:-
a. the audited Financial Statements of the Company for the financial year ended
March 31, 2021, together with the Report of the Board and the Auditors thereon; and
b. the audited Consolidated Financial Statements of the Company for the financial year ended
March 31, 2021, together with the Report of the Auditors thereon.
2. To declare dividend on Equity Shares.
3. To appoint a Director in place of Mr. Venkatchalam Ramaswamy (DIN 00008509), who retires by
rotation and, being eligible, offered himself for re-appointment.
4. To appoint a Director in place of Mr. Himanshu Kaji (DIN 00009438), who retires by rotation and,
being eligible, offered himself for re-appointment.
SPECIAL BUSINESS:
5. Re-appointment of Mr. Rashesh Shah as the Managing Director
To consider and, if thought fit, to pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of Sections 196, 197, 203, Schedule V and other
applicable provisions, if any, of the Companies Act, 2013 (“the Act”) as amended from time
to time, the Rules, Regulations, Guidelines and Circulars issued in this regard and subject
to necessary approvals, if any, approval of the Members be and is hereby accorded for the
re-appointment of Mr. Rashesh Shah (DIN 00008322) as the Managing Director of the Company for
a period of 5 years with effect from April 1, 2022, on the following remuneration:-
i) Basic Salary: Not exceeding ` 3 crores per annum.
ii) Bonus: Not exceeding ` 6 crores per annum.
iii) Perquisites: Not exceeding ` 3 crores per annum.
FURTHER RESOLVED that subject to the applicable provisions of the Act read with Schedule V and other
prevalent laws, where in any financial year during the tenure of appointment of Mr. Rashesh Shah, the
Company has no profits or its profits are inadequate, the Company may pay the aforesaid remuneration
to Mr. Rashesh Shah within the overall limits prescribed under the provisions of the Act.

Notice (continued)
FURTHER RESOLVED that the Board of Directors of the Company (hereinafter referred to as ‘the
Board’ which term shall be deemed to include any Committee which the Board may have constituted
or hereinafter constitute to exercise its powers including the powers conferred by this Resolution) be
authorised on behalf of the Members of the Company to do all such acts, deeds, matters and things
as may be necessary to give effect to this Resolution, and as it may, in its absolute discretion, deem
necessary or expedient in the interest of the Company and with power on behalf of the Company to
settle any questions, difficulties or doubts that may arise in this regard including to vary the terms
of re-appointment, without requiring the Board to secure any further consent or approval of the
Members of the Company.”
6. Re-appointment of Mr. Venkatchalam Ramaswamy as an Executive Director
To consider and, if thought fit, to pass, with or without modification(s) the following resolution as
an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of Sections 196, 197, 203, Schedule V and other
applicable provisions, if any, of the Companies Act, 2013 (“the Act”) as amended from time
to time, the Rules, Regulations, Guidelines and Circulars issued in this regard and subject
to necessary approvals, if any, approval of the Members be and is hereby accorded for the
re-appointment of Mr. Venkatchalam Ramaswamy (DIN 00008509) as an Executive Director of the
Company for a period of 5 years with effect from April 1, 2022, on the following remuneration:-
i) Basic Salary Limit: Not exceeding ` 3 crores per annum.
ii) Bonus: Not exceeding ` 6 crores per annum.
iii) Perquisites: Not exceeding ` 3 crores per annum.
FURTHER RESOLVED that subject to the applicable provisions of the Act read with Schedule V
and other prevalent laws, where in any financial year during the tenure of appointment of
Mr. Venkatchalam Ramaswamy, the Company has no profits or its profits are inadequate, the
Company may pay the aforesaid remuneration to Mr. Venkatchalam Ramaswamy within the overall
limits prescribed under the provisions of the Act.
FURTHER RESOLVED that the Board of Directors of the Company (hereinafter referred to as ‘the
Board’ which term shall be deemed to include any Committee which the Board may have constituted
or hereinafter constitute to exercise its powers including the powers conferred by this Resolution) be
authorised on behalf of the Members of the Company to do all such acts, deeds, matters and things
as may be necessary to give effect to this Resolution, and as it may, in its absolute discretion, deem
necessary or expedient in the interest of the Company and with power on behalf of the Company to
settle any questions, difficulties or doubts that may arise in this regard including to vary the terms
of re-appointment, without requiring the Board to secure any further consent or approval of the
Members of the Company.”
390 | Notice
7. Issue of Securities
To consider and, if thought fit, to pass, with or without modification(s) the following resolution as
a Special Resolution:
“RESOLVED that pursuant to the provisions of Sections 42 and 62 of the Companies Act, 2013,
read with the Companies (Prospectus and Allotment of Securities ) Rules, 2014 and the Companies
(Share Capital and Debentures) Rules, 2014 and other applicable provisions, if any including
any statutory modifications(s) or re-enactment thereof, for the time being in force (“the Act”),
the relevant provisions of the Memorandum and Articles of Association of the Company and in
accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”), Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“the Listing
Regulations”), the applicable provisions of the Foreign Exchange Management Act, 1999, (including
any amendments, statutory modification(s) and / or re-enactment thereof for the time being in force)
(‘the FEMA’), to the extent applicable, the Consolidated Foreign Direct Investment Policy issued by
the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government
of India (“GOI”) and the Foreign Exchange Management (Transfer or Issue of Securities by a Person
Resident outside India) Regulations, 2000, (including any amendments, statutory modification(s)
and / or re-enactment thereof for the time being in force) and all other statutes, rules, regulations,
guidelines, notifications, circulars and clarifications as may be applicable, as amended from time to
time, issued by the GOI, the Ministry of Corporate Affairs (‘MCA’), the Reserve Bank of India (‘RBI’),
SEBI, BSE Limited and National Stock Exchange of India Limited (‘the Stock Exchanges’) where the
equity shares of the Company are listed and subject to requisite approvals, consents, permissions
and/ or sanctions of regulatory and other appropriate authorities, as may be required and subject to
such conditions as may be prescribed by any of them while granting any such approvals, consents,
permissions, and/ or sanctions and which may be agreed to, by the Board of Directors of the Company
(“Board”, which term shall be deemed to include any Committee constituted by the Board to exercise
its powers including the powers conferred hereunder or any person authorised by the Board or its
Committee for such purpose), the approval of the Members of the Company be and is hereby accorded
to the Board to create, offer, issue and allot (including with provisions for reservations on firm and/
or competitive basis, or such part of issue and for such categories of persons as may be permitted,
including the employees of the Company), such number of Equity Shares and/or other Eligible
Securities as defined in Chapter VI of SEBI ICDR Regulations and/or American Depository Receipts
(“ADRs”) and / or Global Depository Receipts (“GDRs”) and/or Non-Convertible Debentures with
warrants and / or Foreign Currency Convertible Bonds and /or securities convertible or exchangeable
into equity including but not limited to Convertible Debentures or Convertible Preference Shares
(compulsorily and/or optionally, fully and/or partly) and/or a combination thereof (hereinafter
referred to as “Equity Shares” or other “Securities”, respectively) at a discount or premium to market
price or prices permitted under applicable law, in such manner and on such terms and conditions
including, security, rate of interest etc., as may be deemed appropriate by the Board, in one or more
tranches, for cash, for an aggregate amount upto ` 2,000 crores or equivalent thereof, by way of
Qualified Institutional Placement (“QIP”)/ Further Public Offer (“FPO”) of securities in accordance
with the SEBI ICDR Regulations, or any combination thereof or by way of any other mode, through
issue of placement document and/or prospectus and/or letter of offer and/or any other permissible/
requisite offer document (“Offering Document/Disclosure Document / Information Memorandum”),
on such terms and conditions, including the terms, type of Securities to be issued, etc., as decided

Notice (continued)
by the Board, in consultation with the book running lead managers appointed for the proposed
Issue, to Qualified Institutional Buyers (“QIBs”) as defined under SEBI ICDR Regulations and/or by
way of FPO or through any other permissible mode, whether they are holders of Equity shares or
not, and on such terms and conditions as may be deemed appropriate by the Board at its absolute
discretion including the discretion to determine the categories of investors to whom the offer, issue
and allotment of the Securities shall be made, considering the prevailing market conditions and other
relevant factors and wherever necessary in consultation with book running lead managers and/or
underwriters and/ or other advisors appointed or to be appointed by the Company and as may be
permitted under applicable law from time to time, and without requiring any further approval or
consent from the Members of the Company (the “Issue”).
FURTHER RESOLVED that if the Issue or any part thereof is made by way of a QIP pursuant to Chapter
VI of the ICDR Regulations:
a) the allotment of the Equity Shares or other Eligible Securities, shall be completed within 365
days or such other period as may specified under the applicable guidelines from the date of
the Special Resolution of the Members of the Company;
b) the Equity Shares that may be issued by the Company in the proposed Issue shall rank pari
passu with the then existing Equity Shares of the Company in all respects;
c) no partly paid-up Equity Shares or other Eligible Securities shall be issued/allotted;
d) the Relevant Date shall mean the ‘Relevant Date’ as defined under Regulation 171 of ICDR
Regulations, on the basis of which the price of the Securities shall be determined;
e) it shall be at such price which is not less than the price determined in accordance with
Regulation 176(1) provided under Chapter VI of the SEBI ICDR Regulations (the “QIP Floor
Price”) and that the Board may, however, at its absolute discretion in consultation with the
book running lead managers, issue Equity Shares at a discount of not more than 5 per cent or
such other discount as may be permitted under applicable regulations to the QIP Floor Price;.
FURTHER RESOLVED that the Board be and is hereby authorised to appoint lead manager(s), depositories,
custodians, registrars, bankers, lawyers, advisors, consultants and all such other agencies / intermediaries
as are or may be required to be appointed, involved or concerned and to remunerate them by way of
commission, brokerage, fees or the like and also to reimburse them out of pocket expenses incurred by
them and also to enter into and execute all such arrangements, agreements, memorandums, documents,
etc. with such agencies and also to seek the listing of such Equity Shares other securities on the Stock
Exchanges.
FURTHER RESOLVED that subject to the applicable provisions of the Act, the Board be and is hereby
authorised, on behalf of the Company, to take all actions and do all such acts, deeds, matters and things
and sign such documents as may be required in furtherance of, or in relation to, or ancillary to, the issue,
offer and allotment of Securities including the finalisation and approval of the draft as well as final offer
document(s), determining the form and manner of the Issue, identification of the eligible investors to
whom the Securities are to be offered, utilization of the issue proceeds, authorising any Director or Officer
of the Company to sign offer documents, execute any necessary documents, agreements, forms, deeds,
appointment of intermediaries, open and close the period of subscription of the Issue, determine the issue
price, premium amount on issue as permitted under applicable law and all other terms and conditions of
392 | Notice
the Securities, signing of declarations, filing of necessary forms with regulatory authorities and to amend,
vary or modify any of the above as the Board may consider necessary, desirable or expedient and to take
such steps and to do all such acts, deeds, matters and things as they may deem fit and proper for the
purposes of the Issue and resolve and settle all questions or difficulties that may arise in regard to such
issue, offer or allotment of Equity Shares or other Eligible Securities or any other securities and take all steps
which are incidental and ancillary in this connection, including in relation to utilization of the issue proceeds,
as it may in its absolute discretion deem fit without being required to seek any further consent or approval
of the Members and the Members shall be deemed to have given their approval thereto expressly by the
authority of this Resolution and all actions taken by the Board or any duly authorised Committee constituted
by the Board to exercise its powers, in connection with any matter(s) referred to or contemplated in any of
the Resolution be and are hereby approved, ratified and confirmed in all respects”.

EDELWEISS FINANCIAL SERVICES LIMITED
Tarun Khurana
Company Secretary
Mumbai, June 11, 2021 (Membership No. A12344)
Registered Office:
Edelweiss House,
Off C.S.T. Road, Kalina,
Mumbai – 400 098.
CIN : L99999MH1995PLC094641

Notice (continued)
NOTES:
1. An Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 (the Act), in respect
of the Special Business to be transacted at the Annual General Meeting (AGM/Meeting) is annexed
hereto. The Board of Directors have considered and decided to include the Item Nos. 5 to 7 given in
the Notice as Special Business in the AGM considering the significance of the same.
2. Considering the current COVID-19 pandemic situation, restricting movement of people at several
places in the country, the Ministry of Corporate Affairs (MCA), vide its General Circular No. 20/2020
dated May 5, 2020 and No. 2/2021 dated January 13, 2021 read with General Circular No. 14/2020
dated April 8, 2020 and No. 17/2020 dated April 13, 2020 (collectively referred to as the MCA
Circulars) and the Circulars issued by the Securities and Exchange Board of India (SEBI) from time to
time (SEBI Circulars), has allowed the Companies to conduct the AGM through VC/OAVM without
the physical presence of the Members at a common venue. Accordingly, as per MCA Circulars and
the applicable provisions of the Act, the 26th AGM of the Company shall be conducted through
VC/OAVM on Friday, September 3, 2021, at 4 P.M. (IST).
3. Pursuant to Regulation 36 of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 as amended from time to time (the Listing Regulations)
and Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries
of India information in respect of the Directors seeking appointment/re-appointment at the AGM is
given as an Annexure to the Notice.
4. As per the provisions of the Act and the Articles of Association of the Company, a Member entitled
to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his / her
behalf and the proxy need not be a Member of the Company. Since this AGM is being conducted
in accordance with the MCA and SEBI Circulars through VC/OAVM, the requirement of physical
attendance of Members has been dispensed with. Accordingly, the facility of appointment of
proxies by Members will not be available for such meetings. Hence, the Proxy Form, Attendance
Slip and Route Map of the venue of the AGM are not annexed to the Notice of the AGM. However,
the Body Corporates, are entitled to appoint authorised representatives to attend the AGM through
VC/OAVM and participate there at and cast their votes through e-voting.
Pursuant to the MCA Circulars, the Members are provided with the facility to join the AGM through
the VC/OAVM mode 15 minutes before the scheduled time of commencement of the AGM and
the same shall be kept open until 15 minutes after the scheduled time of commencement. The
Members are requested to follow the procedure mentioned in the Notice. The facility of participation
at the AGM through VC/OAVM will be made available to at least 1,000 Members on a first come
first serve basis as per the MCA Circulars. The Large Shareholders i.e. Shareholders holding 2% or
more shareholding, Promoters, Institutional Investors, Directors, Key Managerial Personnel, the
Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders
Relationship Committee, Auditors etc. can attend the Meeting without restriction on account of first
come first served principle.
The Institutional Investors, who are Members of the Company, are encouraged to attend the meeting
through VC/OAVM mode and vote electronically. Pursuant to the provisions of the Act, such Members
are required to send a scanned certified true copy (PDF/JPG Format) of the resolution/authorisation
of its Board or governing body., authorising its representative to attend the AGM through VC/OAVM
on its behalf and to vote through remote e-voting. The said certified Resolution/Authorisation shall
be sent to the Scrutinizer at narasimhan.b8@gmail.com with a copy marked to evoting@nsdl.co.in.
394 | Notice
5.
In case of joint holders, the Member whose name appears as the first holder in the order of the
names as per the Register of Members of the Company will be entitled to vote at the AGM.
6. QUORUM
T he attendance of the Shareholders attending the AGM through VC / OAVM will be counted for the
purpose of reckoning the quorum under Section 103 of the Act.
7. BOOK CLOSURE
The Register of Members and the Share Transfer Books of the Company will remain closed from
August 28, 2021 to September 2, 2021 (both days inclusive).
8. DIVIDEND:
The dividend, as recommended by the Board, if approved at the AGM, will be paid subject to
deduction of tax at source, as may be applicable, between September 7, 2021 to September 16,
2021, to those Members:
(a) hose names appear as Beneficial Owners as on August 28, 2021 in the list of Beneficial
w
Owners to be furnished by National Securities Depository Limited and Central Depository
Services (India) Limited in respect of the equity shares held in electronic form; and
(b) whose names appear as Members in the Register of Members of the Company as on August 28,
2021 in respect of the equity shares held in physical form, after giving effect to valid request(s)
received for transmission/ transposition of equity shares.
Pursuant to the Finance Act, 2020, dividend income will be taxable in the hands of Members w.e.f.
April 1, 2020 and the Company is required to deduct tax at source from dividend paid to Members
at the prescribed rates. For detailed information on the same, please refer the Company’s website
at www.edelweissfin.com.
9. UNCLAIMED DIVIDEND
Members are requested to note that dividend which has remained unpaid or unclaimed for
7 consecutive years or more from the date of transfer to the Company’s Unpaid Dividend Account,
will be transferred to the Investor Education and Protection Fund (IEPF) as per Section 124 of the Act.
ccordingly, pursuant to the provisions of the Act and the Investor Education and Protection Fund
A
(Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), the Company has transferred a
sum of ` 5,56,906 to the IEPF during the year 2020-21.
Further, 21,035 equity shares of ` 1 each of the Company, in respect of which dividend has not been
claimed for 7 consecutive years or more, have also been transferred to the beneficiary owner account
of the IEPF Authority.
embers are further requested to note that the unpaid or unclaimed dividends and/or the equity
M
shares transferred to the IEPF can be claimed by them by making an on-line/electronic application
in Form IEPF-5. Upon submitting duly completed form, applicants are requested to take a print of
the same and send the physical copy, duly signed, along with the requisite documents specified in
Form IEPF-5, to the Company/ the RTA of the Company, M/s. Link Intime India Private Limited (Unit:
Edelweiss Financial Services Limited), C 101, 247 Park, LBS Marg, Vikhroli (West), Mumbai-400083,e-
mail: rnt.helpdesk@linkintime.co.in/iepf.shares@linkintime.co.in. The Rules and the application
form (Form IEPF-5), as prescribed by the Ministry of Corporate Affairs(MCA) for claiming the shares/
dividends are available on the website of MCA/IEPF authority – www.iepf.gov.in.

Notice (continued)
In view of the above, Members who have not claimed / encashed the Dividend Warrants for Final
Dividend 2013-14 and/ or any subsequent years are requested to claim their unpaid dividends within
stipulated timeline by writing to the Company / RTA giving the necessary details.
10. GENERAL GUIDANCE TO SHAREHOLDERS
• NOMINATION FACILITY
As per the provisions of Section 72 of the Act, the facility for making nomination is available
for the Members in respect of the shares held by them. Members who have not yet registered
their nomination are requested to register the same by submitting Form No. SH-13. The
Members are requested to submit the said form to their Depository Participant (DP) in case
the shares are held in electronic form and to Link Intime India Private Limited the Registrar &
Transfer Agent (RTA) of the Company in case the shares are held in physical form.
• BANK MANDATES
Members holding shares in physical form are requested to intimate the Registrar & Transfer
Agent under the signature of the Sole/First holder, the following information:
I. Name of the Sole/First holder and the folio number
II. Particulars of Bank Account viz.,
a) Name of the Bank
b) Name of the Branch
c) Complete address of the Branch with Pin code
d) Bank Account Number allotted by the Bank.
In respect of the matters pertaining to Bank details, NECS mandates, nomination, power of
attorney, change in name/address, etc., the Members are requested to approach:
• the Company’s Registrar & Transfer Agent, in case of shares held in physical form; and
• the respective Depository Participants, in case of shares held in electronic form.
In any correspondence with the Company/Registrar & Transfer Agent, the Members are
requested to quote their account/ Folio numbers or DP ID and Client ID in respect of physical
or electronic holdings, respectively.
• MODE OF HOLDING SHARES
As per Regulation 40 of the Listing Regulations, as amended, securities of listed companies can
be transferred only in dematerialized form except in case of request received for transmission
or transposition of securities. In view of this and to eliminate all risks associated with holding
physical shares, the Members holding shares in physical form are requested to consider
converting their holdings to dematerialized form. Members can contact the Company or
Company’s Registrars and Transfer Agents of the Company for any support in this regard.
396 | Notice
• UPDATION OF PERSONAL DETAILS
 Pursuant to SEBI circular dated April 20, 2018, shareholders whose ledger folios having
incomplete details with regard to PAN and Bank particulars are required to compulsorily
furnish the same to the Registrar and Transfer Agent (RTA)/ to the Company for
registration in the folio.
 Members are requested to intimate changes, if any, pertaining to their name, postal
address, email address, telephone/ mobile numbers, Permanent Account Number
(PAN), mandates, nominations, power of attorney, bank details such as, name of the
bank and branch details, bank account number, MICR code, IFSC code, etc., to their DPs
in case the shares are held in electronic form and to Link Intime India Private Limited in
case the shares are held in physical form.
 Members holding shares in physical form, in identical order of names, in more than one
folio are requested to send to the Company or RTA of the Company the details of such
folios together with the share certificates for consolidating their holdings in one folio. A
consolidated share certificate will be issued to such Members after making requisite changes.
11. DISPATCH OF ANNUAL REPORT IN ELECTRONIC FORM AND PROCESS FOR REGISTRATION OF EMAIL
ID FOR OBTAINING COPY OF ANNUAL REPORT BY E-MAIL:
a. In accordance with the MCA and the SEBI Circulars and owing to the difficulties involved in
dispatching of physical copies of the Annual Report for the financial year 2020-21 ( including
the Financial Statements, Board’s Report, Auditor’s report or other documents required to be
attached thereto) (the Annual Report 2020-21), and the Notice of the AGM, are being sent in
electronic mode to Members and other persons entitled to receive the Notice, whose e-mail
address is registered with the Company or the Depository Participant(s).
b. The Members holding Equity Shares of the Company in Demat Form or Physical Form and who
have not yet registered their e-mail address are requested to follow the procedure stated in
point no. 12 given below for the purpose of registration.
c. A copy of the Annual Report 2020-21 along with the Notice of the AGM and Explanatory
Statement is available on the website of the Company at www.edelweissfin.com, BSE
Limited (BSE) and National Stock Exchange of India Limited (NSE) at www.bseindia.com &
www.nseindia.com respectively and National Securities Depository Limited (NSDL) at
www.evoting.nsdl.com
12. PROCEDURE FOR REGISTRATION OF EMAIL IDS WITH THE DEPOSITORIES FOR PROCURING USER
ID AND PASSWORD AND FOR E-VOTING ON THE RESOLUTIONS SET OUT IN THIS NOTICE :
a. In case the shares are held in physical mode, shareholders are requested to provide
Folio No., Name of shareholder, scanned copy of the share certificate (front and back),
self-attested scanned copy of PAN and Aadhar Card by e-mail to the Company at
Efsl.Shareholders@edelweissfin.com.
b. In case the shares are held in demat mode, please provide DPID & CLID (16 digit DPID +
CLID or 16 digit beneficiary ID), Name, self-attested scanned copy of client master or copy of
Consolidated Account statement, PAN Aadhar to the respective Depository Participants.
c. If you are an Individual shareholders holding securities in demat mode, you are requested to
refer to the login method explained at step 15(g) i.e. Login method for e-Voting and joining
virtual meeting for Individual shareholders holding securities in demat mode.

Notice (continued)
d. Alternatively shareholder/members may send a request to evoting@nsdl.co.in for procuring

user id and password for e-voting by providing above mentioned documents.
13. PROCEDURE TO RAISE QUESTIONS / SEEK CLARIFICATIONS WITH RESPECT TO ANNUAL REPORT:
a. As the AGM is being conducted through VC / OAVM the Members are encouraged to express
their views / send their queries in advance mentioning their name, demat account number (DP
Id & Client Id) / folio number, email id, mobile number at Efsl.Shareholders@edelweissfin.com
b. Members desirous of getting any information in respect of the contents of the Annual Report
are requested to forward the same to the Company Secretary at least 10 days prior to the
AGM so that the required information can be made available. The same will be replied by/on
behalf of the Company suitably.
c. In order to enable smooth conduct of AGM, the Members who would like to express
their views during the AGM may register themselves as a Speaker by sending an email to
Efsl.Shareholders@edelweissfin.com, alongwith your name and DP ID/CLIENT ID on Monday,
August 30, 2021 between 9 A.M. to 6 P.M.
The Company reserves the right to restrict the number of questions and number of speakers, as
appropriate for smooth conduct of the AGM.
14. PROCEDURE FOR JOINING THE AGM THROUGH VC/ OAVM:
• The Member will be provided with a facility to attend the AGM through VC/OAVM through
the e-Voting system by following the instructions given in point 15(g).
• The link for VC/OAVM will be available in shareholder/members login where the Electronic
Voting Event Number (‘EVEN’) of Edelweiss Financial Services Limited (the Company) will be
displayed.
• On clicking this link, the Members will be able to attend and participate in the proceedings of
the AGM of the Company.
• Please note that the Members who do not have the User ID and Password for e-Voting or have
forgotten the User ID and Password may retrieve the same by following the remote e-Voting
instructions mentioned below in point no. 15(g) of the Notice. Further, the members can also
use the OTP based login for logging into the e-Voting system.
• The Members are encouraged to join the AGM through Laptops for better experience. The
Members will need the latest version of any of the following browsers viz. Chrome, Safari,
Internet Explorer 11, MS Edge or Firefox. Further, the Speaker Members are recommended to
use an Internet with a good speed and choose ‘allow camera’ option in the browser for better
communication.
• Please note that the Members/participants connecting through Mobile devices, Tablets
or Laptop via mobile hotspot may experience Audio/Video loss due to fluctuation in their
respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to
mitigate any kind of aforesaid glitches.
398 | Notice
15. PROCEDURE FOR REMOTE E-VOTING AND E-VOTING DURING THE AGM:
a. In compliance with the provisions of Section 108 of the Act read with Rule 20 of the Companies
(Management and Administration) Rules, 2014 (as amended from time to time) [the Rules],
Regulation 44 of the Listing Regulations and the MCA Circulars, the Company has provided the
facility to its Members to exercise their right to vote on resolutions proposed to be considered
at the AGM by electronic means. The facility of casting votes by a Member using remote
e-voting system as well as remote e-voting during the AGM will be provided by NSDL having
its office at Trade World, ‘A’Wing, 4th Floor, Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013.
b. The members are requested to carefully read the instructions on e-voting given in point no.
15(g) before casting their vote electronically.
c. The e-voting period begins on Tuesday, August 31, 2021 at 9 A.M. and ends on Thursday,
September 2, 2021 at 5 P.M. (remote e-voting period). During the remote e-voting period,
the Members of the Company, holding shares either in physical form or in dematerialized
form, as on Friday, August 27, 2021, the cut-off date, may cast their vote electronically. This
remote e-voting module shall be disabled by NSDL for voting thereafter. The voting rights of
the members shall be in proportion to their equity shares held in the total paid up equity share
capital of the Company as on the cut-off date.
d. The Members who have not cast their votes during the aforementioned period, can cast their
votes during the AGM by following the same process as applicable for remote e-voting. The
remote e-voting module on the day of the AGM shall be disabled by NSDL for voting 15 minutes
after the conclusion of the Meeting.
e. Once the vote on a resolution is cast, the member shall not be allowed to change it subsequently
or cast the vote again.
f. The Members who had cast their votes by remote e-voting prior to the AGM may attend the
AGM. However, they shall not be entitled to cast their vote again. Members holding shares in
physical form are requested to access the remote e-voting facility provided by the Company
through NSDL e-voting system at www.evoting.nsdl.com.
g. Procedure for e-voting as prescribed by NSDL
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are
mentioned below:
Step 1: Access to NSDL e-Voting system
A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities
in demat mode
In terms of SEBI circular dated December 9, 2020 on e-voting facility provided by Listed Companies,
Individual shareholders holding securities in demat mode are allowed to vote through their demat
account maintained with Depositories and Depository Participants. Shareholders are advised to
update their mobile number and email Id in their demat accounts in order to access e-voting facility.

Notice (continued)
Login method for Individual shareholders holding securities in demat mode is given below:
Type of shareholders Login Method

Individual 1. Existing IDeAS user can visit the e-Services website of NSDL Viz.
Shareholders holding https://eservices.nsdl.com either on a Personal Computer or on
securities in demat a mobile. On the e-Services home page click on the “Beneficial
mode with NSDL. Owner” icon under “Login” which is available under ‘IDeAS’ section
, this will prompt you to enter your existing User ID and Password.
After successful authentication, you will be able to see e-Voting
services under Value added services. Click on “Access to e-Voting”
under e-Voting services and you will be able to see e-Voting page.
Click on company name or e-Voting service provider i.e. NSDL and
you will be re-directed to e-Voting website of NSDL for casting your
vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
2. If you are not registered for IDeAS e-Services, option to register is

available at https://eservices.nsdl.com. Select “Register Online for
IDeAS Portal” or click at https://eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
3. Visit the e-Voting website of NSDL. Open web browser by typing the
following URL: https://www.evoting.nsdl.com/ either on a Personal
Computer or on a mobile. Once the home page of e-Voting system
is launched, click on the icon “Login” which is available under
‘Shareholder/Member’ section. A new screen will open. You will
have to enter your User ID (i.e. your sixteen digit demat account
number hold with NSDL), Password/OTP and a Verification Code as
shown on the screen. After successful authentication, you will be
redirected to NSDL Depository site wherein you can see e-Voting
page. Click on company name or e-Voting service provider i.e. NSDL
and you will be redirected to e-Voting website of NSDL for casting
your vote during the remote e-Voting period or joining virtual
meeting & voting during the meeting.
4. Shareholders/Members can also download NSDL Mobile App “NSDL

Speede” facility by scanning the QR code mentioned below for
seamless voting experience.
400 | Notice
Type of shareholders Login Method
1. Existing users who have opted for Easi / Easiest, they can login through
their user id and password. Option will be made available to reach
e-Voting page without any further authentication. The URL for users to
login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/
login or www.cdslindia.com and click on New System Myeasi.
2. After successful login of Easi/Easiest the user will be also able to

see the E Voting Menu. The Menu will have links of e-Voting service
Individual provider i.e. NSDL. Click on NSDL to cast your vote.
Shareholders holding
securities in demat 3. If the user is not registered for Easi/Easiest, option to register is
mode with CDSL available at https://web.cdslindia.com/myeasi/Registration/
EasiRegistration
4. Alternatively, the user can directly access e-Voting page by providing

demat Account Number and PAN No. from a link in www.cdslindia.
com home page. The system will authenticate the user by sending
OTP on registered Mobile & Email as recorded in the demat Account.
After successful authentication, user will be provided links for the
respective ESP i.e. NSDL where the e-Voting is in progress.
Individual You can also login using the login credentials of your demat account
Shareholders through your Depository Participant registered with NSDL/CDSL for
(holding securities e-voting facility. Upon logging in, you will be able to see e-voting option.
in demat mode) Click on e-voting option, you will be redirected to NSDL/CDSL Depository
login through site after successful authentication, wherein you can see e-voting feature.
their depository Click on company name or e-voting service provider i.e. NSDL and you will
participants be redirected to e-voting website of NSDL for casting your vote during
the remote e-voting period or joining virtual meeting & voting during the
meeting.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget
User ID and Forget Password option available at abovementioned website.
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues
related to login through Depository i.e. NSDL and CDSL.
Login type Helpdesk details

Individual Shareholders Members facing any technical issue in login can contact NSDL
holding securities in helpdesk by sending a request at evoting@nsdl.co.in or call at toll free
demat mode with NSDL no.: 1800 1020 990 and 1800 22 44 30
Individual Shareholders Members facing any technical issue in login can contact CDSL
holding securities in helpdesk by sending a request at helpdesk.evoting@cdslindia.com or
demat mode with CDSL contact at 022- 23058738 or 022-23058542/43
B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual
shareholders holding securities in demat mode and shareholders holding securities in physical
mode.
How to Log-in to NSDL e-Voting website?
(i) Visit the e-Voting website of NSDL. Open web browser by typing the following
URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.

Notice (continued)
(ii) Once the home page of e-Voting system is launched, click on the icon “Login” which is available
under ‘Shareholder/Member’ section.
(iii) A new screen will open. You will have to enter your User ID, your Password/OTP and a
Verification Code as shown on the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at
https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices
after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast
your vote electronically.
(iv) Your User ID details are given below :
Manner of holding shares i.e. Your User ID

Demat (NSDL or CDSL) or Physical
a) For Members who hold shares 8 Character DP ID followed by 8 Digit Client ID
in demat account with NSDL. For example if your DP ID is IN300*** and Client ID
is 12****** then your user ID is IN300***12******.
b) For Members who hold shares 16 Digit Beneficiary ID
in demat account with CDSL. For example if your Beneficiary ID is 12**************
then your user ID is 12**************
c) For Members holding shares EVEN Number followed by Folio Number registered
in Physical Form. with the company
For example if folio number is 001*** and EVEN is
101456 then user ID is 101456001***
(v) Password details for shareholders other than Individual shareholders are given below:
a) If you are already registered for e-voting, then you can user your existing password to
login and cast your vote.
b) If you are using NSDL e-voting system for the first time, you will need to retrieve the
‘initial password’ which was communicated to you. Once you retrieve your ‘initial
password’, you need to enter the ‘initial password’ and the system will force you to
change your password.
c) Procedure to retrieve your ‘initial password’?
a) If your email ID is registered in your demat account or with the company, your
‘initial password’ is communicated to you on your email ID. Trace the email sent
to you from NSDL from your mailbox. Open the email and open the attachment
i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8
digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio
number for shares held in physical form. The .pdf file contains your ‘User ID’ and
your ‘initial password’.
b) If your email ID is not registered, please follow steps mentioned below in process
for those shareholders whose email ids are not registered.
(vi) If you are unable to retrieve or have not received the “Initial password” or have forgotten your
password:
402 | Notice
a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat
account with NSDL or CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password?” (If you are holding shares in physical mode) option
available on www.evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a
request at evoting@nsdl.co.in mentioning your demat account number/folio number,
your PAN, your name and your registered address etc.
d) Members can also use the OTP (One Time Password) based login for casting the votes
on the e-Voting system of NSDL.
(vii) After entering your password, tick on Agree to “Terms and Conditions” by selecting on
the check box.
(viii) Now, you will have to click on “Login” button.
(ix) After you click on the “Login” button, Home page of e-Voting will open.
Step 2: Procedure to cast your vote electronically and join AGM on e-Voting system NSDL.
1. After successful login at Step 1, you will be able to see all the companies’ “EVEN” in which you
are holding shares and whose voting cycle and AGM is in active status.
2. Select “EVEN” of the company – “116560” to cast your vote during the remote e-Voting period
and casting your vote during the AGM. For joining virtual meeting, you need to click on “VC/
OAVM” link placed under “Join General Meeting”.
3. Now you are ready for e-Voting as the Voting page opens.
4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number
of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when
prompted.
5. Upon confirmation, the message “Vote cast successfully” will be displayed.
6. You can also take the printout of the votes cast by you by clicking on the print option on the
confirmation page.
7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
16. THE INSTRUCTIONS FOR MEMBERS FOR E-VOTING ON THE DAY OF THE AGM ARE AS UNDER:-
a. The procedure for e-voting on the day of the AGM is same as the instructions mentioned above
for remote e-voting.
b. Only those Members, who will be present in the AGM through VC/OAVM facility and have
not cast their votes on the Resolutions through remote e-voting and are otherwise not barred
from doing so, shall be eligible to vote through e-voting system in the AGM.
c. Members who have voted through remote e-voting will be eligible to attend the AGM. However,
they will not be eligible to vote at the AGM.

Notice (continued)
d. Members may also send their queries relating to e-voting to Mr. Amit Vishal, Assistant Vice
President/Ms. Pallavi Mhatre, Manager, NSDL, at email id: evoting@nsdl.co.in or call Toll Free
No. 1800 1020 990 /1800 224 430
17. GENERAL INFORMATION FOR SHAREHOLDERS
i. It is strongly recommended not to share your password with any other person and take utmost
care to keep your password confidential. Login to the e-voting website will be disabled upon
five unsuccessful attempts to key in the correct password. In such a event, you will need to
go through the “Forget User Details/Password?” or “Physical User Rest Password?” option
available on www.evoting.nsdl.com to reset the password.
ii. The Statutory Registers under the Act and documents, if any, referred to in the Notice and
Explanatory Statement pursuant to Section 102 of the Act will be available electronically for
inspection by the Members during the AGM. Documents, if any, referred to in the Notice will
also be available for electronic inspection by the Members from the date of circulation of this
Notice up to the date of AGM. Members seeking to inspect such documents can send an email
to Efsl.Shareholders@edelweissfin.com.
iii. The Board of Directors of the Company has appointed Mr. B. Narasimhan, Proprietor -
M/s. B. N. & Associates, Company Secretaries, failing him, Mr. Avinash Bagul, Partner -
M/s. BNP & Associates, Company Secretaries, failing him, Mr. K. Venkataraman, Practicing
Company Secretary as the Scrutinizer(s) to scrutinize the voting and remote e-voting process
in a fair and transparent manner. The Scrutinizer’s decision on the e-voting shall be final.
iv. The Scrutinizer shall, after the conclusion of voting at the AGM, count the votes cast at the
meeting, and the votes cast through remote e-voting and make, within two working days from
the of the conclusion of the AGM, a consolidated Scrutinizer’s Report of the total votes cast in
favour or against, if any, to the Chairman or a person authorized by him in writing, who shall
countersign the same and declare the result of the voting forthwith.
v. The results declared along with the report of the Scrutinizer shall be placed on the
website of the Company www.edelweissfin.com and on the website of NSDL e-voting viz.
www.evoting.nsdl.com after the declaration of result by the Chairman or a person authorized
by him in writing. The results shall also be forwarded to BSE and NSE.
404 | Notice
ANNEXURE TO THE NOTICE DATED JUNE 11, 2021
STATEMENT PURSUANT TO THE PROVISIONS OF SECTION 102 OF THE COMPANIES ACT, 2013 (‘the Act’)
ITEM NO. 5 & 6:
The Members at the 22nd Annual General Meeting of the Company held on August 2, 2017 had appointed
Mr. Rashesh Shah as Managing Director and Mr. Venkatchalam Ramaswamy as an Executive Director of
the Company for a term of 5 years with effect from April 1, 2017. The tenure of appointment of Mr. Shah
and Mr. Venkatchalam Ramaswamy expires on March 31, 2022. The Board of Directors at their meeting
held on June 11, 2021 had, subject to the approval of the Members re-appointed Mr. Rashesh Shah as the
Managing Director and Mr. Venkatchalam Ramaswamy as an Executive Director for a period of five years
w.e.f. April 1, 2022. The brief profile of the proposed appointees are as under:
a) Mr. Rashesh Shah
Mr. Rashesh Shah, co-founder of the Edelweiss group, is the Chairman & Managing Director of the
Company. He has diverse experience in the financial markets and has been instrumental in building
Edelweiss into one of India’s leading diversified financial services organisations. He holds a post-
graduate diploma in management from the Indian Institute of Management, Ahmedabad, and a
post-graduate diploma in international trade from the Indian Institute of Foreign Trade. He has
served as President of Federation of Indian Chambers of Commerce and Industry (FICCI), which is
India’s apex industry association in 2017-18. He has been a member of the High Level Task Force on
Public Credit Registry for India, the Advisory Committee on Corporate Insolvency and Liquidation,
Executive Committee of the National Stock Exchange and the High Level Committee to review the
Insider Trading Regulations set up by SEBI.
b) Mr. Venkatchalam Ramaswamy
Mr. Venkatchalam Ramaswamy, co-founder of the Edelweiss group, is the Vice Chairman & Executive
Director on the Board. He has diverse experience in the financial markets. He co-heads Edelweiss
Group’s advisory businesses and has been instrumental in building a client-need based solutions
approach in the Distressed Asset Resolution and Asset Reconstruction business. He holds a master’s
degree in business administration from the University of Pittsburgh, and a bachelor’s degree in
engineering (electronics and communication branch) from Karnatak University, Dharwad.
Except for the proposed remuneration payable to Mr. Rashesh Shah and Mr. Venkatchalam Ramaswamy and
to the extent of shares held in the Company by them and their relatives, they do not have any pecuniary
relationship directly or indirectly with the Company or with any Director/Key Managerial Personnel except
that Mr. Rashesh Shah is related to Ms. Vidya Shah, a Non-executive Director of the Company.
The Board recommends passing the Resolutions set out in Item No. 5 and Item No. 6 of the Notice as
Ordinary Resolutions.
Except Mr. Rashesh Shah and Ms. Vidya Shah, none of the Directors and the Key Managerial Personnel and
their relatives are interested or concerned, in any manner in Item No. 5 of the Notice.
Except Mr. Venkatchalam Ramaswamy, none of the Directors and the Key Managerial Personnel and their
relatives are interested or concerned, in any manner in Item No. 6 of the Notice.

Notice (continued)
ITEM NO. 7:-
The Company together with its subsidiaries has been continuously diversifying in the financial services
space. The Company in this pursuit has been consistently exploring various avenues for raising funds
for various purposes including but not limited to augmenting its long-term resources, general corporate
purposes, etc. The requirement of funds is proposed to be met through issue of securities, subject to
approval of the Members of the Company, if required and other appropriate approvals, for an aggregate
amount of upto ` 2,000 crores, to the eligible investors.
The consent of the Members is therefore being sought by way of a Special Resolution as set out in Item No. 7
of the Notice, pursuant to applicable provisions of the Companies Act, 2013, the SEBI ICDR Regulations
and any other law for the time being in force and applicable for the issue/allotment of Equity Shares or
Eligible Securities or any other securities which may be consummated in one or more tranches at such time
and at such price, whether at a discount or premium to market price and on such terms and conditions
as the Board (hereinafter referred to as the Board which term shall deemed to include any Committee(s)
constituted/to be constituted by the Board) may in its absolute discretion decide, taking into consideration
prevailing market conditions and other relevant factors and wherever necessary in consultation with
advisors, book running lead managers and such other authority or authorities as may be necessary and
subject to, the SEBI ICDR Regulations, and other applicable guidelines, notifications, rules and regulations,
as amended. The proposed issue of Equity shares/other securities by way of QIP/FPO or through any
other mode may be offered to investors who may not be Members of the Company and hence approval
of shareholders is sought in terms of the Companies Act, 2013.
The pricing of the Equity Shares and/or any other securities shall be determined in accordance with the
relevant provisions of the SEBI ICDR Regulations, the Companies Act, and any other applicable law. In case
of QIP, the Board in accordance with applicable law and in consultation with book running lead managers,
may offer a discount of not more than 5 per cent or such percentage as permitted under applicable law
on the floor price determined pursuant to the SEBI ICDR Regulations (i.e. not less than the average of the
weekly high and low of the closing prices of the equity shares quoted on a stock exchange during the two
weeks preceding the ‘Relevant Date’). The ‘Relevant Date’ for the purpose of pricing the Securities shall,
subject to applicable laws, be the date of the meeting in which the Board / Committee decides to open
the proposed issue or such other date as may be permitted under the ICDR Regulations. The pricing of the
Securities where the Securities are issued as ADRs/GDRs or FCCBs shall be determined in accordance with
the provisions of the applicable laws, rules and regulations issued by relevant authorities.
The allotment of Equity Shares or other Securities shall be completed within timeline prescribed, if any,
under applicable laws. The Equity Shares shall rank pari passu in all respects, including in respect of
entitlement to dividend with the then existing equity shares and in accordance with the provisions of the
placement document(s). The Eligible Securities or Equity Shares offered through QIP, shall not be eligible
to be sold for a period of one year from the date of allotment, except on a recognised stock exchange, or
except as may be permitted under the SEBI ICDR Regulations from time to time.
The Equity Shares allotted would be listed on BSE Limited and National Stock Exchange of India Limited and
in case of ADR/GDR, on overseas Stock Exchange(s). The offer/ issue / allotment would be subject to the
availability of the regulatory approvals, if any. The conversion of Securities held by foreign investors into
Equity Shares would be subject to the applicable foreign investment cap and relevant foreign exchange
regulations.
Accordingly, the Board of Directors recommends passing of the Special Resolution set out in Item No. 7 of
the Notice. None of the Promoters or Directors and Key Managerial Personnel will be eligible to participate
in the QIP and there will not be change in control.
406 | Notice
None of the Directors or Key Managerial Personnel and/or their relatives, are in any way, financially or
otherwise, interested or concerned in this Resolution, except to the extent of their shareholding in the
Company.
Details of Directors seeking appointment/re-appointment at the Annual General Meeting pursuant

to Regulation 36 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and Secretarial Standard on General Meetings (SS-2).
Particulars Mr. Rashesh Shah Mr. Venkatchalam Mr. Himanshu Kaji

Ramaswamy
Age 57 years 54 years 55 years
Date of first November 21, 1995 February 20, 1996 November 1, 2011
Appointment
Experience in Has diverse experience Has diverse experience Has diverse experience
functional Area of over three decades in of over three decades in of over three decades in
financial services sector. financial services sector. financial services sector.
Qualification • B. Sc., MBA from IIM, • B.E. (Electronics & • Chartered Accountant
Ahmedabad Communication) • Post Graduate Diploma in
• Diploma in • MBA from the University Securities Law
International Trade of Pittsburgh
from the Indian
Institute of Foreign
Trade, New Delhi
Terms and Appointed as a Managing Appointed as an Executive Appointed as an
Conditions of Director w.e.f. April 1, Director Executive Director w.e.f.
Appointment/ 2017 for a period of 5 w.e.f. April 1, 2017 for a November 1, 2019 for
Reappointment years term of 5 years a term of 5 years
Remuneration Entitled for payment of Entitled for payment of Entitled for payment of
to be paid Salary, Perquisites and Salary, Perquisites and Salary, Perquisites and
Bonus as approved by Bonus as approved by the Bonus as approved by the
the Members of the Members of the Company Members of the Company
Company at the Annual at the Annual General at the Annual General
General Meeting held on Meeting held on August 2, Meeting held on July 25,
August 2, 2017. 2017. 2019.
Remuneration Refer Corporate Refer Corporate Refer Corporate
last drawn Governance Report Governance Report Governance Report forming
forming a part of the forming a part of the a part of the Annual Report
Annual Report Annual Report
No. of Board 6 6 6
Meetings
attended during
the year

Notice (continued)
Particulars Mr. Rashesh Shah Mr. Venkatchalam Mr. Himanshu Kaji

Ramaswamy
Directorship 1. ECL Finance Limited 1. ECL Finance Limited Edelweiss Trusteeship
in other 2. Edelweiss Asset 2. Edelweiss Asset Company Limited
Companies Reconstruction Reconstruction
Company Limited Company Limited
3. Edelweiss Tokio Life 3. Edelweiss Capital
Insurance (Singapore) Pte. Ltd.
Company Limited 4. Edelweiss Alternative
4. Mabella Trustee Asset Advisors Pte. Ltd.
Services Private 5. Edelweiss Investment
Limited Advisors Pte. Ltd.
5. Rashesh & Vidya Shah 6. Edelwesiss Global
Family Foundation Wealth Management
6. Edelweiss Securities Limited
Limited 7. Edelweiss Securities
Limited
8. Edelweiss Finance &
Investments Limited
Membership/ - Audit Committee- Audit & Risk Committee-
Chairmanship 1. Edelweiss Asset Edelweiss Trusteeship
of Committees Reconstruction Company Company Limited
of other Limited
public limited
companies* 2. Edelweiss Securities
Limited
Stakeholders Relationship
Committee-
Edelweiss Finance &
Investments Limited
Relationship Ms. Vidya Shah, None None
with other a Non-Executive Non-
Directors inter- Independent Director of
se and with the Company is spouse of
Key Managerial Mr. Rashesh Shah
Personnel of the
Company
No. of shares 14,56,01,730 Equity 5,81,26,560 Equity Shares 38,51,500 Equity Shares of
held in the Shares of ` 1 each of ` 1 each ` 1 each
Company
*Only Audit Committee and Stakeholders’ Relationship Committee, in other public limited companies, have been considered for the
Committee position.

EDELWEISS FINANCIAL SERVICES LIMITED
Tarun Khurana
Company Secretary
Mumbai, June 11, 2021 (Membership No. A12344)
Registered Office:
Edelweiss House,
Off C.S.T. Road, Kalina,
Mumbai – 400 098.
CIN : L99999MH1995PLC094641
408 | Notice
Raising the Bar
Best Private Bank, India 2021 Most Innovative Technology Initiative of the Year & Best
Global Finance World’s Best Private Banks Awards for 2021 Use of Technology to Enhance Customer Experience
(Edelweiss General Insurance – SWITCH)
Best Private Bank for Family Offices, India 2020 Customer Fest Awards 2021
Asiamoney Best Private Banking Awards 2020
Great Place to Work
Best Broker, India (Edelweiss Tokio Life Insurance) Great Place to Work®
FinanceAsia Country Awards 2020 Institute, India
Best Private Bank, India Domestic 2020 Asia's Best insurance Company Award
Asian Private Banker Annual Private Banking Awards for (ETLI - Digital Sales Channel)
Distinction 2020 Insurance Alerts 2020
Iconic Brands of India 2020 - Edelweiss Mutual Fund Best Product Innovation & Best Innovation and Emerging
The Economic Times Technologies
Utility M&A Deal of the Year Asia Feather Awards 2021
(Edelweiss Investment Banking)
The Asset Triple A Infrastructure Awards 2020 Best Launch (Edelweiss MF Bharat Bond ETF)
for the sale of 57% of Sterlite Power to KKR and GIC India PR and Corporate Communication Awards –
IPRCCA 2020
Best Innovation - Mobility Services

8th World Auto Forum Awards 2021
Best Innovation in Customer Service (ETLI)

25th BFSI Tech Innovation Forum
(organised by Alden Global & NASSCOM)
Best Podcast Content of the Year

(Edelweiss MF Money Konnect Podcast & Webinar)
BuzzInContent Awards 2020
& Team Edelweiss

Concept:
EDELWEISS GROUP
Registered Office:
Edelweiss House, Off CST Road
Kalina, Mumbai 400 098
Maharashtra, India
CIN L99999MH1995PLC094641
Tel: 0224009 4400 Fax: 0224086 3759
Email: efsl.shareholders@edelweissfin.com
www.edelweissfin.com
edelweissgroup All numbers and data are as of 31 March 2021 and includes EWM

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EW/Sec/2021/147

August 11, 2021

BSE Limited National Stock Exchange of India

Scrip Code:- 532922 Symbol:– EDELWEISS

Dear Sir/ Madam,

Sub: Annual Report for the financial year 2020-21

Kindly take the same on record.

Edelweiss Financial Services Limited

ANNUAL REPORT 2020 ­ 21

At Edelweiss as well, the last year was a journey of resilience,

In a year when the world became more conscious of the interconnected

As we culminate the first 25 years of our journey, we take the inherent

Edelweiss Annual Report 2020­21 l 01

STRONG BALANCE SHEET & LIQUIDITY

Strong Net Worth Debt Equity Ratio

Declined from 4.4x in FY19

Strong Liquidity Reduced Borrowings

declined by 41% over FY19

WELL CAPITALISED BUSINESSES

CAPAD of 25%+ in Credit Solvency ratio of more than

ROBUST CUSTOMER FRANCHISEE

Growing Customer Assets Increasing Customer Base

35% YoY growth demonstrating the 42% YoY growth

Edelweiss Annual Report 2020-21 | 03

India’s Leading Alternative Assets Platform

Among the fastest growing Asset Management companies

ASSET RECONSTRUCTION: Leading ARC in the country

Steady Fee Income Robust Recoveries

`8 billion Total recoveries over last

Life Insurance – among the fastest General Insurance – digitally enabled

CREDIT: Moving to Asset Light business

WEALTH MANAGEMENT: 2nd Largest non-bank Wealth Manager in India

Assets under Advice(AuA) – 5.3x Strong Customer Franchise

Edelweiss Annual Report 2020-21 | 5

06 | Our Response to COVID-19

AS A RESPONSIBLE CORPORATE CITIZEN

Edelweiss Annual Report 2020-21 | 07

OUR RESPONSIBILITY TOWARDS OUR PEOPLE

Our Preparation Focus areas during the transition

08 | Our Response to COVID-19

Edelweiss Annual Report 2020-21 | 09

OUR RESPONSIBILITY TOWARDS OUR CUSTOMERS AND PARTNERS

10 | Our Response to COVID-19

Edelweiss General Insurance leveraged on Edelweiss Institutional Equities enabled virtual

Edelweiss Annual Report 2020-21 | 11

12 | Our Guiding Principles

Edelweiss Annual Report 2020-21 | 13

14 | Our Diversified Business Model

ASSET ASSET WEALTH

Caisse de dépôt Tokio Marine Holdings Caisse de dépôt et Pacific Alliance

Net Worth Gross Revenue Profit After Tax

Expanding Customer Assets Earned Investor Trust Business Leadership

16 | Our Diversified Business Model

Net Worth Gross Revenue Profit After Tax

Demonstrating trust of our investors Strong Global Partnerships Leveraging Opportunities

* Net of finance cost and impairments Edelweiss Annual Report 2020-21 | 17

Customers Agents Branches FY21 Number of Policies

* Unique active customers as on date

Long-term Value creation High Quality Franchise Innovative Products

18 | Our Diversified Business Model

ANNUAL REPORT 2020 21

Edelweiss Annual Report 202021 l 01

Launched The GROW Fund (Grassroots