Untitled

Index
About Us 01
Our Purpose and Pillars 03
Corporate Social Responsibility Initiatives 05
Product Portfolio 07
Digital Initiatives 09
New Products Introduced 11
Tata Capital Team 13
Snapshot of Numbers 15
Awards 17
Message from the Chairman 19
Message from the Managing Director & CEO 21
Board's Report 25
Management Discussion and Analysis 70
Consolidated
o Financial
F l Statements
e
Independent Auditor's Report 78
Financials
ia for FY
Y 2021 - 2022
2 88
Salient Features of Financial Statements of 244
4
Su ie Associates/
Subsidiaries/ oc o Venture
Joint tu
Standalone
da Financial
n Statements
St nts
Independent
en Auditor's
u Report
Re 248
2
Financials for FY 2021 - 2022 260
L
24
BOARD’S REPORT
To the Members,
The Board has pleasure in presenting the 31st Annual Report and the Audited Financial Statements for
the Financial Year (“FY”) ended March 31, 2022.
1. BACKGROUND
Tata Capital Limited (“Company” or “TCL”), the flagship financial services company of the Tata
Group, primarily holds investments in its subsidiaries which are mainly engaged in lending and
offering a wide array of services/products in the financial services sector. TCL is a subsidiary of Tata
Sons Private Limited and is registered with the Reserve Bank of India (“RBI”) as a Systemically
Important Non-Deposit Accepting Core Investment Company (“CIC”). Besides being a holding
company, TCL carries out only such activities as are permitted under the Directions issued by the
RBI for CICs, as amended from time to time. TCL and its subsidiaries are hereinafter collectively
referred to as “Tata Capital”.
2. FINANCIAL RESULTS
(` in crore)
Consolidated Standalone
Particulars
FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Gross Income 10,252.65 9,987.72 511.89 452.17
Less: Finance Costs 4,889.03 5,212.58 289.70 255.13
Net Interest Margin and Other Revenue 5,363.62 4,775.14 222.19 197.04
Impairment on Financial Instruments / 1,083.28 1,450.31 7.30 18.98
Investments
Employee Benefits Expense 875.25 693.98 87.42 91.84
Depreciation, Amortisation and Impairment 275.88 334.37 7.10 7.27
Other Expenses 891.13 678.79 17.42 15.92
Profit Before Tax 2,238.08 1,617.69 102.95 63.03
Less: Provision for Tax 546.91 370.33 19.85 16.36
Profit After Tax 1,691.17 1,247.36 83.10 46.67
Add: Share of Net Profit of Associates 109.64 (2.72) - -
using the equity method
Less: Non-controlling interest 152.60 118.81 - -
Profit After Tax attributable to owners 1,648.21 1,125.83 83.10 46.67
of the Company
Other comprehensive Income attributable 50.63 (5.03) (0.99) 6.88
to owners of the Company
Total comprehensive Income 1,698.84 1,120.80 82.11 53.55
attributable to owners of the Company
Amount brought forward from previous 1,838.81 1,001.24 177.22 133.00
year
Amount available for appropriation 3,537.65 2,122.04 259.33 186.55
Less Appropriations:
Special Reserve Account 351.13 304.90 16.99 9.33
Others (28.47) (21.67) - -
Surplus carried to Balance Sheet 3,214.99 1,838.81 242.34 177.22
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Annual Report 2021-22
Consolidated Results:
Tata Capital’s consolidated book size increased to ` 94,349 crore as at March 31, 2022 from
` 77,220 crore as at March 31, 2021.
During FY 2021-22, Tata Capital recorded consolidated Total Income of ` 10,253 crore as against
` 9,988 crore in FY 2020-21, an increase of about 3%. The Total Income comprised Income from
financing activities of ` 9,227 crore (FY 2020-21: ` 8,879 crore), Investment Income of ` 630 crore
(FY 2020-21: ` 601 crore) and Other Income of ` 396 crore (FY 2020-21: ` 508 crore).
The consolidated interest expense for the year was ` 4,889 crore (FY 2020-21: ` 5,213 crore), a
decrease of 6% which was primarily on account of lower cost of funds.
The Consolidated Net Interest Margin and Other Income for the year was ` 5,364 crore
(FY 2020-21: ` 4,775 crore), an increase of 12% which was primarily on account of lower cost of funds
and higher other income.
Impairment on Investments and Financial Instruments decreased to ` 1,083 crore in

FY 2021-22 compared to ` 1,450 crore in FY 2020-21. The consolidated Gross Non-Performing
Assets (“GNPA”) showed decrease from 2.5% in FY 2020-21 to 1.9% in FY 2021-22. The
Net Non-Performing Assets (“NNPA”) also decreased from 0.9% in FY 2020-21 to 0.6% in
FY 2021-22. Provision Coverage Ratio (“PCR”) stood at 71% (FY 2020-21: 65%)
The Operating Expenses (including Employee costs, Depreciation and other expenses) increased
by 20% as compared to FY 2020-21.
During the year, Tata Capital’s Profit After Tax attributable to owners of the Company on a
consolidated basis increased by about 46%, to ` 1,648 crore (FY 2020-21: ` 1,126 crore).
The consolidated Return on Assets (“RoA”) for FY 2021-22 was 2.0% (FY 2020-21: 1.5%) while the
Return on Equity (“RoE”) was 15.6% (FY 2020-21: 12.2%).
Standalone Results:
During FY 2021-22, TCL recorded Gross Income of Rs 511.89 crore (FY 2020-21: ` 452.17 crore)
Profit after Tax during the year was ` 83.10 crore (FY 2020-21: ` 46.67 crore).
The Company has transferred an amount of ` 16.99 crore to the Special Reserve Account. The
closing balance of the retained earnings of the Company for FY 2021-22, after all appropriation and
adjustments, was ` 236.96 crore (As on March 31, 2021: ` 170.84 crore).
3. SHARE CAPITAL
The paid-up Equity Share Capital of the Company was ` 35,16,16,77,440 as on March 31, 2022.
During FY2021-22, consequent to the Put Option exercised by the Shareholders, Cumulative
Redeemable Preference Shares (“CRPS”) aggregating ` 49.88 crore were redeemed. Accordingly,
the paid-up Preference Share Capital as on March 31, 2022, was ` 1109.92 crore. The details of
CRPS redeemed are available at Page Nos. 296 and 297 of the Annual Report.
As per Indian Accounting Standards (“Ind AS”), CRPS have been classified and reported under
borrowings (other than debt securities) in the Standalone Financial Statements.
During the year no fresh issue of Equity Shares or CRPS was made.
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4. DIVIDEND
The Board of Directors of the Company declared Interim Dividend on the CRPS for the
following tranches for the period April 1, 2021 to March 31, 2022, on March 25, 2022, as under:
Dividend Rate Dividend Amount

Tranche(s)* No. of CRPS
(%) p.a. including TDS (In `)
T, U, V, W, AF, AG, AH, AI, AJ, AK, 69,26,000 7.50 51,94,50,000
AL, AM and AN
X and Y 14,09,500 7.33 10,33,16,350
Z 6,45,500 7.15 4,61,53,250
AA, AB, AC and AD 17,18,200 7.10 12,19,92,200
AE 4,00,000 7.75 3,10,00,000
Total 82,19,11,800
*CRPS on which Put Option has not been exercised or was not applicable.
Since the Company has paid Dividend to the CRPS holders for the period April 1, 2021 to
March 31, 2022, by way of an Interim Dividend, the Directors do not recommend any final dividend
on the CRPS.
Further, consequent upon the exercise of Put Option by the Shareholders, CRPS of the nominal
value aggregating ` 49.88 crore were redeemed during the year and accordingly, Interim
Dividend aggregating ` 1,96,22,258 (including TDS) was paid on these CRPS for the period from
April 1, 2021 up to the date of redemption. The details of Interim Dividend paid on redemption are,
as under:
Dividend Amount
Dividend Rate
Tranche(s)* No. of CRPS Redemption Date including TDS
(%)
(In `)
U, V and W 7.50 1,40,000 August 23, 2021 41,72,000
Y 7.33 88,000 August 23, 2021 25,62,560
Z 7.15 1,04,500 November 30, 2021 49,95,100
AA 7.10 1,66,300 November 30, 2021 78,92,598
Total 4,98,800 1,96,22,258
*partial redemption consequent upon exercise of Put option by the shareholders.
The Directors of your Company recommend a final dividend of Re. 0.16 per Equity Share of ` 10
each for the FY 2021-22, subject to approval of the Members. This would be the maiden Equity
Dividend to be declared by the Company.
5. OVERVIEW OF THE COMPANY, ITS SUBSIDIARIES AND ASSOCIATES

5.1 Structure of Business Operations at Tata Capital
TCL is primarily a holding company, holding investments in its subsidiaries and other group
companies and carries out only such activities, including advising and/or management of private
equity funds, as are permitted under the Directions / Guidelines issued by the RBI for CICs, from
time to time. All the other operating businesses are carried on by the subsidiaries of TCL.
The financial services sector in India, as also globally, is highly regulated. TCL and its
subsidiaries are subject to regulations by authorities such as the RBI, the Securities and
Exchange Board of India (“SEBI”), the National Housing Bank (“NHB”), the Monetary Authority
of Singapore (“MAS”), the Financial Conduct Authority, UK, the Association of Mutual Funds of
India (“AMFI”) and the Insurance Regulatory and Development Authority of India (“IRDA”).
A detailed discussion on the Private Equity Funds and TCL’s subsidiaries is set out in the
below paras.
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5.2 Private Equity

5.2.1 Domestic Funds
The Company has set up six Private Equity Funds in India, viz. Tata Capital Growth Fund I,
Tata Capital Growth Fund II, Tata Capital Healthcare Fund I, Tata Capital Healthcare Fund II,
Tata Capital Innovations Fund and Tata Capital Special Situations Fund - Trust (collectively
referred to as “Funds”). These Funds have been registered with SEBI as Venture Capital
Funds / Alternative Investment Funds. The Company has sponsored these Funds and acts
as their Investment Manager. The aggregate Assets Under Management of these Funds is
` 3,359 crore, as at March 31, 2022.
The performance of the above Funds is reviewed below:
i) Tata Capital Growth Fund I (“TCGF I”) and Tata Capital Growth Fund II (“TCGF II”)
TCGF I was set up with a mandate to make private equity growth capital investments
in companies that have a significant portion of their operations in India. TCGF I’s
investment focus themes are Urbanisation, Discrete Manufacturing and Strategic
Services. The Fund typically targets stakes in portfolio companies with Board
representation and other significant shareholder rights. TCGF I has provided growth
capital funding to industry leading companies, with an average deal size of approximately
` 40 crore. TCGF I declared its final close in February 2011, with commitments of
` 339 crore, of which, ` 253 crore was invested in six portfolio companies. TCGF I’s
commitment period ended on November 9, 2015. The term of the Fund was extended
to October 10, 2022 with approval of TCGF I’s Investor Advisory Board and requisite
majority of Contributors.
During the year, the Fund exited its remaining investment in Commercial Engineers &
Body Builders Co Ltd (CEBBCO) through a sale on the stock exchanges realizing INR
19.05 crore. The Fund participated in the buyback of equity shares announced by Tata
Technologies Limited and tendered 401,003 equity shares which were bought back at a
price of ` 1,982 per share in April, 2022.
As at March 31, 2022, the TVPI multiple (Total Value, including Distributions, to Paid in
Capital), after providing for estimated manager incentive is 2.68x.
TCGF II is the follow-on fund to TCGF I. TCGF II declared its final close on
January 15, 2021 and has commitments of ` 1,235 crore (includes commitments of USD
118 million). The Company has committed ` 362.9 crore as Sponsor commitment to
TCGF II. TCGF II has drawn down 44% of commitments of which ` 476 crore was
invested in 4 portfolio companies.
ii) Tata Capital Healthcare Fund I (“TCHF I”) and Tata Capital Healthcare Fund II
(“TCHF II”)
TCHF I was set up to target long-term capital appreciation through private equity
growth-capital investments in healthcare companies involved in pharmaceutical,
contract research/manufacturing, hospital services, medical devices, diagnostic and
other healthcare segments. TCHF I’s investment strategy is predicated on high growth
consumption and competency themes within the Indian healthcare sector, driven by
increasing per capita disposable income, rising urbanisation, growing health awareness,
increasing chronic and life-style oriented disease pattern and growth in domestic
healthcare infrastructure. The Fund typically targets stakes in portfolio companies with
Board representation and other significant shareholder rights. TCHF I has provided
growth capital funding to companies with an average deal size of approximately
` 35 crore. TCHF I declared its final close in April 2012, with commitments of
` 319 crore, of which, ` 245 crore was invested in seven portfolio companies. TCHF
I’s commitment period ended on July 13, 2015. The term of the Fund was extended to
June 30, 2023 with approval of TCHF I’s Investor Advisory Board and requisite majority
of Contributors.
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Capital) of TCHF I, after providing for estimated manager incentive was 1.88x.
TCHF II is the follow on fund to TCHF I. TCHF II declared its final close on
March 11, 2022 with investor commitments of ` 955 crore (includes commitments of
USD 53.25 million). The Company has committed ` 140 crore as Sponsor commitment
to TCHF II. TCHF II has drawn down 18% of commitments of which ` 133 crore was
invested in 3 portfolio companies.
iii) Tata Capital Innovations Fund (“TCIF”)

TCIF is a sector agnostic venture capital fund and invests in early stage companies,
offering technology based solutions for Indian as well as global markets. TCIF focuses
on investments which have a potential to create new growth opportunities, increase
efficiency, bring affordability and accessibility to the industry or change the way business
is conducted. The Fund typically targets stakes in portfolio companies with Board
representation and other significant shareholder rights. TCIF declared its final close in
April 2012, with commitments of ` 287 crore, of which, ` 218 crore has been invested in
seven portfolio companies as at March 31, 2022. TCIF’s commitment period ended on
January 29, 2017 and the Fund has approached its Investors seeking an extension of its
term to January 29, 2024.
Capital) of TCIF is 0.57x.
iv) Tata Capital Special Situations Fund (“TCSSF”)

TCSSF focuses on investing in turnaround opportunities. The Fund typically targets
stakes in portfolio companies with Board representation and other significant shareholder
rights. Of the aggregate drawn amount of ` 265 crore, ` 222 crore was invested in four
portfolio companies. TCSSF’s commitment period ended on March 31, 2014 and its term
ends on December 4, 2022.
Capital) of TCSSF is 1.18x.
5.2.2 Overseas Funds

The Overseas Funds, viz. Tata Capital Growth Fund Limited Partnership (“TCGFLP”), Tata
Capital Growth Fund II LP (“TCGFIILP”), Tata Capital HBM Healthcare Fund I Limited
Partnership (“TCHHFLP”), Tata Capital Healthcare Fund II (Feeder) LP (“TCHFIILP”) and Tata
Opportunities Fund Limited Partnership (“TOF”), are based in Singapore.
The Company’s subsidiary in Singapore, Tata Capital Advisors Pte. Ltd is the Investment
Manager for TCGFLP, TCGFIILP, TCHHFLP, TCHFIILP and TOF. Overseas Funds accept
commitments only from overseas investors. The aggregate investor commitments raised by
the Overseas Funds as at March 31, 2022 were US$ 888 million.
TCGFLP declared its final close in November 2011 with commitments of US$ 167 million, of
which, approximately 86% has been drawn down and US$ 125 million has been invested in
portfolio companies. TCGFIILP is a feeder fund to TCGF II. TCGFIILP declared its final close
on January 15, 2021 with commitments of US$ 108 million.
TCHHFLP declared its final close in January 2016 with commitments of US$ 15 million, of
which, approximately 99% has been drawn down and US$ 11 million has been invested in
portfolio companies. TCHFIILP is a feeder fund to TCHF II and has declared its final close on
March 11, 2022 with commitments of US$ 53 million.
TOF declared its final close in March 2013, with commitments of US$ 545 million, of
which, over US $ 483 million (89%) has been drawn down as at March 31, 2022 and over
US$ 386 million has been invested in portfolio companies.
29
The Company has a co-investment arrangement with TOF, whereby the Company has a
commitment to co-invest the Indian Rupee equivalent of an amount of up to US $ 50 million
alongside TOF, subject to regulatory restrictions.
5.3 Review of Subsidiaries and Associates

5.3.1 Subsidiaries:
As on March 31, 2022, the Company had the following subsidiaries, brief details of whose
performance are given below:
i) Tata Capital Financial Services Limited (“TCFSL”)

TCFSL is a wholly-owned subsidiary of the Company, registered with the RBI as a
Systemically Important Non-Deposit Accepting Non-Banking Financial Company (“NBFC-
ND-SI”).
TCFSL’s main areas of business include Retail Finance, SME and Commercial Finance.
In the Retail Finance space, TCFSL offers a wide range of Loans, such as Auto Loans
(Used Car Loans and Two Wheeler Loans), Business Loans, Loans Against Property,
Personal Loans, Consumer Durables Loans and Loans Against Securities.
In the SME and Commercial Finance segment, TCFSL specializes in product
offerings ranging from Term Loans, Working Capital Term Loans, Channel Finance,
Bill Discounting, Construction Equipment and Commercial Vehicle Loans, Equipment
Finance, Leasing Solutions, Lease Rental Discounting, Promoter Finance, Loan Against
Securities and Structured Products.
TCFSL’s portfolio increased by ` 11,068 crore from ` 45,101 crore in
FY 2020-21 to ` 56,169 crore in FY 2021-22. TCFSL’s Profit Before Tax was ` 1,080
crore (FY 2020-21: ` 825 crore) and the Profit After Tax for the year increased by about
21% to ` 817 crore (FY 2020-21: ` 677 crore).
The consolidated Profit After Tax, after accounting for share in Profits of Associates
for FY 2021-22, increased by 21% to ` 818 crore, as compared to ` 675 crore in
FY 2020-21.
In FY 2021-22, the Gross and Net Non-Performing Assets (“NPA”) stood at 2.2% and
0.5% as compared to 3.0% and 0.9% in FY 2020-21, respectively.
ii) Tata Capital Housing Finance Limited (“TCHFL”)
TCHFL is a wholly-owned subsidiary of the Company and is registered as a Housing
Finance Company with the NHB to carry on housing finance activities. TCHFL primarily
offers Home Loans and Affordable Housing Finance Loans, Loans Against Property and
Loans to Developers for constructing Residential and Commercial premises.
TCHFL’s loan portfolio stood at ` 30,150 crore as on March 31, 2022 (` 25,840 crore
as on March 31, 2021). TCHFL’s Profit Before Tax was ` 760 crore (FY 2020-21:
` 478 crore) and the Profit After Tax for the year increased by 60% to ` 569 crore
(FY 2020-21: ` 355 crore).
In FY 2021-22, the Gross and Net NPA stood at 1.6% and 0.7% as compared to 2.1%
and 0.9%, in FY 2020-21, respectively.
iii) Tata Cleantech Capital Limited (“TCCL”)

TCCL is a joint venture between TCL and International Finance Corporation, Washington
D.C., USA, with equity holding in the ratio of 80.50:19.50 respectively.
TCCL is registered with the RBI as an Infrastructure Finance Company and is engaged
in the business of providing cash flow based finance and advisory services for projects
in Renewable Energy, Energy Efficiency, Waste Management, Water Management and
Infrastructure Finance.
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TCCL’s portfolio increased by ` 1,551 crore from ` 6,279 crore in FY 2020-21 to
` 7,830 crore in FY 2021-22. TCCL’s Profit Before Tax was ` 269 crore (FY 2020-21:
` 221 crore) and the Profit After Tax increased by about 22% to ` 204 crore (FY 2020-21:
` 168 crore).
In FY 2021-22, the Gross and Net NPAs stood at 0.8% and 0.5% as compared to 1.0%
and 0.6%, in FY 2020-21, respectively.
iv) Tata Securities Limited (“Tata Securities”)

Tata Securities is a wholly-owned subsidiary of the Company, currently engaged in
the business of distribution of Mutual Fund units in the capacity of an AMFI registered
distributor. Tata Securities has been empaneled with several Asset Management
Companies operating in India. Tata Securities is a member of BSE Limited registered
in the cash segment and of the National Stock Exchange of India Limited (“NSE”)
registered in the capital market, futures and options and currency derivatives segments.
Tata Securities is a Depository Participant of Central Depository Services (India)
Limited and of National Securities Depository Limited and is also registered with SEBI
as a Research Analyst. Tata Securities is registered with Pension Fund Regulatory and
Development Authority (“PFRDA”) to act as a Point of Presence-Sub Equity (“POP-SE”)
under National Pension System (“NPS”) for HDFC Pension Management Co Ltd).
During the year under review, Tata Securities reported a Gross Income of ` 5.78 crore
(FY 2020-21: ` 6.18 crore) and Loss after Tax of ` 11.72 crore (Loss After Tax for
FY 2020-21: ` 1.89 crore).
v) Tata Capital Pte. Ltd., (“TCPL”), Singapore and its subsidiaries, viz. Tata Capital
Advisors Pte. Ltd. (“TCAPL”), Singapore and Tata Capital Plc. (“TCPLC”), UK
TCPL, a wholly-owned subsidiary of TCL, carries out the business of proprietary
investments and fund management, either on its own or through its subsidiaries.
TCAPL, a wholly-owned subsidiary of TCPL, holds a Capital Markets Services (“CMS”)
license under the Securities and Futures Act of Singapore, issued by the MAS for
conducting regulated fund management activities. TCAPL acts as an Investment
Manager to the offshore Private Equity Funds set up by TCPL.
TCPLC, a wholly-owned subsidiary of TCPL and incorporated in the U.K., is authorised
by the Financial Conduct Authority to provide regulated services. TCPLC’s focus has
been to support Tata Asset Management Limited and has been engaged in performing
services in mapping potential investors in the UK and Europe for India specific
investment products available to investors and carry out market research. During the
year, this activity has ceased and TCPLC will soon initiate the process of winding up.
During the year under review, TCPL recorded a consolidated Gross Income of
US$ 16 million i.e. ` 117 crore (FY 2020-21: US$ 17 million i.e. ` 128 crore). For
FY 2021-22, Profit Before Tax was at US$ 11 million i.e. ` 82 crore (FY 2020-21:
US$ 12 million i.e. ` 87 crore) and Profit After Tax was at US$ 9 million i.e. ` 70 crore
(FY 2020-21: US$ 10 million i.e. ` 74 crore) [US$ amount translated at ` 74.3767, the
annual average exchange rate for FY 2021-22].
vi) Other Subsidiaries

In addition to the above subsidiaries, the following entities are also treated as
subsidiaries of the Company, as per the applicable Accounting Standards:
i. Tata Capital General Partners Limited Liability Partnership, a partnership formed in
Singapore to act as a General Partner and manage the Tata Capital Growth Fund
Limited Partnership.
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ii. Tata Capital Healthcare General Partners Limited Liability Partnership, a partnership
formed in Singapore to act as a General Partner and manage the Tata Capital HBM
Healthcare Fund I Limited Partnership.
iii. Tata Opportunities General Partners Limited Liability Partnership, a partnership
formed in Singapore to act as a General Partner and manage the Tata
Opportunities Fund Limited Partnership.
iv. Tata Capital Growth II General Partners Limited Liability Partnership, a partnership
formed in Singapore to act as a General Partner and manage the Tata Capital
Growth Fund II Limited Partnership.
v. Tata Capital Healthcare II General Partners Limited Liability Partnership, a
partnership formed in Singapore to act as a General Partner and manage the Tata
Capital Healthcare II (Feeder) Limited Partnership.
5.3.2 Associates/Subsidiaries:
As at March 31, 2022, the Company had, as per its Consolidated Financial Statements, total
investments of ` 1,066 crore (FY 2020-21: ` 830 crore) in associate companies.
A separate statement, containing the salient features of the Financial Statements of
the subsidiaries and associates of the Company, in accordance with the provisions of the
Companies Act, 2013 (“the Act”) and the applicable Accounting Standards, in the prescribed
Form No. AOC-1, is included in the Annual Report at Page Nos. 244 and 245.
5.3.3 Other Investments:

As at March 31, 2022, the Company had, as per its Consolidated Financial Statements, other
investments of ` 6,780 crore (FY 2020-21: ` 3,823 crore) comprising of equity shares, mutual
funds, debentures, government securities and Treasury bills.
6. CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to the provisions of Section 129(3) of the Act, the Consolidated Financial Statements
of the Company are included in the Annual Report. A separate statement containing the salient
features of the Financial Statements of its subsidiaries and associates in the prescribed Form
No. AOC-1, is also included in the Annual Report at Page Nos. 244 and 245. The said Financial
Statements are also available for inspection on the website of the Company at www.tatacapital.com
under Investor Information tab.
7. FINANCE
During FY 2021-22, the Company met its funding requirements through issue of Commercial
Papers and Unsecured Non-Convertible Debentures (“NCD”). During the year, the Company issued
Unsecured Listed NCDs of ` 1,000 crore (Face Value) on a private placement basis. The aggregate
debt of the Company outstanding as at March 31, 2022 was ` 4,090 crore, including CRPS at
amortised cost of ` 1,110 crore which has been classified as borrowings as per Ind AS. Out of total
borrowings, ` 1063 crore is payable within one year. The Debt Equity ratio of the Company as at
March 31, 2022 was 0.63 times.
The Company has been regular in repayment of its borrowings and payment of interest thereon.
On a consolidated basis, the Company had borrowings aggregating ` 86,220 crore as at
March 31, 2022 (FY 2020-21: ` 69,063 crore), which includes CRPS at amortised cost of ` 1,110
(FY 2020-21: ` 1,159 crore).
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8. CREDIT RATING
During the year under review, rating agencies reaffirmed/issued ratings to the Company, as under:
NATURE OF SECURITIES RATING AGENCY RATING

Commercial Papers CRISIL and ICRA CRISIL A1+ and ICRA A1+
Unsecured NCDs and Bank Facilities CRISIL CRISIL AAA/Stable
Unsecured NCDs INDIA RATINGS and ICRA ICRA AAA/Stable and IND
AAA/Outlook Stable
CRPS CRISIL CRISIL AAA/Stable
9. Risk Management
Tata Capital has built a robust risk management framework with strong risk fundamentals
and continues to monitor the internal and external risks arising out of macro-economic factors,
regulatory changes and geo-political scenario. The Board of Directors has set the tone at the
top by laying down and approving the strategic plans and objectives for Risk Management and
Risk Philosophy. The Risk Management Committee of the Board has the responsibility relating to
monitoring and reviewing risks.
A comprehensive Enterprise Risk Management (“ERM”) Framework has been adopted across
Tata Capital which uses defined Key Risk Indicators based on quantitative and qualitative factors.
A two-dimensional quantitative data management tool - Heat Map – has been implemented, which
enables the management to have a comprehensive view of 9 identified key risk areas based on
their probability and impact. These are Credit Risk, Market Risk, Process, People, Outsourcing,
Technology, Business Continuity, Cyber Security and Reputation Risk. The Key Risk Indicators (KRIs),
as part of the ERM Framework are aligned with the strategic objectives and business developments.
Changes in internal and external operating environment, digitalization, technological advancements
and agile way of working have increased the significance of Fraud, Information & Cyber Security
and Operational Risks. At Tata Capital there is continued focus on increasing operational resilience
and mitigation of these risks.
10. INTERNAL FINANCIAL CONTROL

The Management has laid down set of standards, processes and structure which enables to
implement internal financial controls across the organization with reference to financial statements
and that such controls are adequate and are operating effectively. Internal Finance control
framework has been established in line with the Internal Control - Integrated Framework (2013)
issued by the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”)
and Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (the ‘Guidance Note’).
During FY 2021-22, testing was conducted basis process walkthrough and review of samples as
per documented controls in the Risk & Control matrix. Testing is done for each of the controls
confirming the existence and operating effectiveness of controls over financial reporting. Review
was performed on design, adequacy and operating effectiveness of the controls.
During the year under review, no material or serious observation has been observed for inefficiency
or inadequacy of such controls.
11. INFORMATION TECHNOLOGY SUPPORT

At Tata Capital, Information Technology (IT) is leveraged to enhance and automate business
processes at all stages. New IT interventions are focused around building cutting edge digital
and data capabilities. Tata Capital has invested in solutions to ensure safe and secure Work from
Anywhere environment for all employees. This has been used very effectively during the lockdown
imposed due to COVID-19 pandemic.
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Tata Capital continues to enhance its Digital platform for both the Retail and the Corporate
businesses, across customer acquisition as well as customer servicing area. The use of Robotic
Process Automation, Artificial Intelligence and Machine Learning has been adopted to drive
business growth, improve productivity and enhance customer experience.
Tata Capital has also invested into cutting edge technologies to set up the Data Lake which acts as
a backbone to provide no touch reporting.
The IT Policies and Procedures are reviewed periodically.
12. DIGITAL PLATFORM & ANALYTICS

Tata Capital in the FY 21-22 accelerated its digital transformation to achieve business growth, drive
customer centricity and attain operational excellence.
During the year, the Company deepened its focus on building new digital platforms and improved
direct - to - customer journeys to drive growth across businesses. The share of business from
digital channels grew significantly during the year. Further, digital-only products and services paved
the way for new opportunities to increase customer reach and connect.
For the commercial lending business, Sugam Loans was launched for retailers & distributors in
Tier 2 locations. This digital–only product offering was a new area of business which will provide
opportunities for growth within a new customer segment.
On customer service, the objective remained to enhance self-service and migrate a large proportion
of customer servicing and debt servicing to digital platforms and channels. The newer channels
such as chat bots continued to gain traction and saw significant usage. Efforts were also made to
digitalize the debt servicing function. As part of this, new channels of payment including UPI based
payments were added, existing platforms were strengthened and a series of new features were
introduced. New service requests were introduced for customers of leasing business which could
be availed in a hassle-free manner. New channels for servicing such as WhatsApp based servicing
was also added for commercial loan customers.
On the customer service side for retail lending products, existing digital offerings were enhanced
with industry- leading features. Real time sanctions were made available for personal loans,
business loans and home loan products, for both new and existing customers of Tata Capital.
During the year, Tata Capital also launched Loan against Shares and Mutual funds on the digital
platform which enables seamless on-boarding and servicing journeys for customers. This includes
industry first features such as multi DP pledging. New features were also added for Wealth
management customers to ensure real time servicing and connect with their Relationship Managers.
Synergies with the Tata group eco-system as well as with fintech players continued to play a pivotal
role in the Tata Capital growth journey. Products such as EMI Cards and Personal Loans were
launched on the ‘Tata Neu’ platform. In addition to this, new avenues were created to increase
cross selling opportunities of various Tata Company products including insurance and mutual funds.
On the commercial lending side too, tie-ups with Tata companies for working capital loans played
an important role for disbursement growth. In addition, tie-ups with other leading fintech players
for both business generation as well as process & data augmentation led to growth as well as
operational efficiencies.
Collection from digital channels saw an increase over the year. An end-to-end automated
communication framework was also created for the debt servicing function. This ensured the use
of micro-segmentation to reach customers through their preferred channels and led to enhanced
efficiency in the collection process. The use of robotics process automation for back-office
processes continued over the year. New processes were identified for automation and the use of
robotics helped enhance productivity and reduce costs.
Finally, the use of data analytics was enhanced across the lending value chain starting from
customer acquisition to portfolio monitoring and debt servicing. The use of scorecards for
underwriting increased during the year. Use of data science for risk and portfolio monitoring
34
remained an important element to control credit losses. Analytics was also used effectively to help
in customer retention, to improve NPS scores and in debt servicing.
Tata Capital will continue to make investments in new technologies to seek opportunities for growth.
The Company will nurture innovation to build new capabilities, build products and services through
digital. The endeavour for the future will be to enable us to thrive in a digital environment and
create new benchmarks in the financial services sector.
13. TATA BUSINESS EXCELLENCE MODEL

Tata Capital continues to enhance its capabilities and processes in keeping with market and
regulatory changes, using the framework of the Tata Business Excellence Model (“TBEM”) (based
on Baldridge Criteria, USA), which covers aspects of Leadership and Governance, Strategic
Planning, Customer Focus, Measurement, Analysis and Knowledge Management, Workforce Focus
and Operations Focus. Tata Capital had participated in its seventh TBEM external assessment
conducted by the Tata Business Excellence Group a division of Tata Sons Private Limited, between
July to December 2020 and was placed in the 600-650 score band, which indicates the level of
“Emerging Industry Leader” with an absolute score of 624 (TBEM score in 2018 was 582). This
reflects a significant improvement in the journey of Excellence. This was also the first time, TCL
participated in the TBEM 2020 External Assessment along with all its subsidiaries and businesses.
All subsidiaries and businesses have been recognized as “Emerging Industry Leaders“.
The assessment provided Tata Capital with important granular feedback in terms of its current
strengths and opportunities for improvements to work upon. Key strengths indicated in the
TBEM 2020 Assessment were the (i) Organization’s alignment with its Vision and the building of
capability and structure for achieving the Vision (ii) Focus on building a quality book and (iii) Risk
Management, Internal Audit and Governance mechanisms.
In FY 21-22, Tata Capital chose not to undergo TBEM Assessment and instead work upon the
feedback of TBEM 2020 Assessment. Tata Capital has implemented many improvement initiatives
involving people, process, digitization and technology over the last few years. These include
process simplification, re-engineering and automation for improving Tata Capital’s operational focus
in order to enhance customer satisfaction and improve internal efficiencies with an objective to gain
a competitive advantage. Many practices of Tata Capital have been recognized as Group wide Best
Practices consistently in the last many years.
14. THE TATA CAPITAL BRAND

The Tata Capital brand has been built on the pledge of delivering on promises. The brand has
maintained its position and has seen steady growth on awareness and consideration parameters in
the Financial Services sector, especially amongst the NBFCs.
Continuing the emphasis on Tata Capital’s brand promise “Count On Us”., in the FY 2020-21, Tata
Capital offered those impacted by the pandemic with an exclusive product suite called Shubharambh
Loans, with an extended tenure and an eased eligibility. The brand campaign line was also aptly
coined, “yeh sirf Karz nahi humara Farz bhi hai”. The campaign saw much success as it spoke
directly to the customer’s state of mind.
FY 2021-22 saw continued focus on customer-need driven communication, stemming from the
insight that they seek flexibility more than anything. The new brand campaign #ApneMannKiKaro
promoted the new product suite called “Flexi Plus Loans”, with Longer Tenure, Overdraft Benefits
and Step Up Payments. The campaign performed exceptionally well on all mediums used
in the form of traffic to website, leads and business. The brand building was effective due to a
balanced approach in the media mix of conventional and digital media, along with insight-oriented
communication.
The year also saw four mini campaigns on Social Media to boost an ‘always-on’ strategy. The
brand will continue to focus on social media and digital branding campaigns, with supplementing
conventional media at regular intervals to raise salience and consideration.
35
15. CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (“CSR”) is deeply rooted in the Tata Group’s business philosophy
laid down by its Founder, Mr. Jamsetji N. Tata over a century ago. The Group companies have a
sense of responsibility towards making use of their existing resources and knowledge to not only
make profits but also solve social and environmental issues.
Tata Capital too follows the Group’s belief that our society can truly progress if every individual is
included and empowered in the Journey of development. To guide us in this journey, the Company
has a well defined CSR policy which outlines the thrust areas of development viz. Education
and Skill Development & Entrepreneurship, Health and Climate Action, as adopted by the CSR
Committee and the Board of Directors of the Company.
The CSR policy of the Company is available on the Company’s website,
https://www.tatacapital.com/content/dam/tata-capital/pdf/footer/TCL-CSR%20Policy.pdf.
During FY 2021-22, Tata Capital has spent an aggregate amount of ` 2,611.11 lakh on CSR
activities in projects and programs covered under Schedule VII of the Act.
The CSR budget for the Company (standalone) was ` 0.99 lakh, this being two percent of the
average net profit of the Company in the three immediately preceding financial years, calculated as
per Section 198 of the Act, read with the Companies (CSR Policy) Rules, 2014. The budget was
spent towards projects and programs covered under Schedule VII to the Act, as recommended by
the CSR Committee of the Board and approved by the Board of Directors of the Company. The
Annual Report on CSR activities is annexed herewith as Annexure ‘A’.
To conceptualize and implement the projects, Tata Capital follows a robust process, including
appraising and selecting technically sound NGOs, planning the project based on baseline
assessment, creating a project plan for implementation and monitoring and evaluation mechanisms.
This helps to bring the desired positive and measurable results for the target beneficiaries.
Additionally, the Company adheres to the Tata Group’s Tata Affirmative Action Program based on
the framework defined by Confederation of Indian Industries. The framework focuses on upliftment
of Scheduled Castes and Scheduled Tribes and identifies 4Es as key areas of development i.e.
Education, Employability, Employment and Entrepreneurship. In addition to the 4Es, Tata Capital
also adheres to ‘Essentials’ as another category to provide for basic services like shelter, water and
electricity.
16. COMPLIANCE
The Company is registered with the RBI as a CIC. The Company has complied with and continues
to comply with all applicable laws, rules, circulars and regulations, including the Master Direction –
Core Investment Companies (Reserve Bank) Directions, 2016 (“RBI Directions”), as amended from
time to time, and it does not carry on any activity other than those permitted by the RBI for CICs.
The NCDs issued by the Company on a private placement basis are listed on the National Stock
Exchange of India Limited. Accordingly, the Company has also complied with and continues to
comply with SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”),
as amended from time to time. Further, SEBI vide its notification no. SEBI/LAD-NRO/GN/2021/47,
issued on September 7, 2021, amended the SEBI Listing Regulations and made Regulations 15 to
27 applicable to the Debt Listed Companies having an outstanding value of listed Non-Convertible
debt securities of ` 500 crore and above i.e. High Value Debt Listed Entity (“HVDLE”), on comply or
explain basis till March 31, 2023. Accordingly, Company has been classified as a HVDLE and the
aforementioned Regulations have become applicable to the Company.
17. DEPOSITS
The Company did not hold any public deposits at the beginning of the year nor has it accepted any
public deposits during the year under review.
36
18. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The provisions of Section 186 of the Act pertaining to investment and lending activities are not
applicable to the Company since the Company is a NBFC whose principal business is acquisition of
securities.
Details of guarantees and/or security in connection with loans to other bodies corporate or
persons as covered under the provisions of Section 186 of the Act, are given in Note No. 21 to the
Standalone Financial Statements.
19. DIRECTORS
Based on the recommendation of the Nomination and Remuneration Committee and the Board of
Directors, the Members of the Company:
i. at the Annual General Meeting (“AGM”) held on June 28, 2021, approved the appointment of
Ms. Malvika Sinha (DIN: 08373142) as an Independent Director of the Company, for an initial
term of 3 years commencing from April 1, 2021 up to March 31, 2024; and
ii. at the Extraordinary General Meeting of the Company held on November 23, 2021, approved
the re-appointment of Ms. Varsha Purandare (DIN: 05288076) as an Independent Director
of the Company, for a second term of 3 years commencing from April 1, 2022 up to
March 31, 2025.
The Company was in receipt of notice, in writing, from the member(s) pursuant to section 160 of the
Companies Act, 2013, for the appointment and re-appointment of Ms. Sinha and Ms. Purandare,
respectively for the office of Director.
In accordance with the provisions of the Act and the Articles of Association of the Company,
Mr. Saurabh Agrawal (DIN: 02144558), Non-Executive Director, is liable to retire by rotation at the
ensuing AGM and is eligible for re-appointment. The Members of the Company may refer to the
accompanying Notice of the AGM for the brief Resume of Mr. Agrawal.
Pursuant to the ‘Fit and Proper’ Policy adopted by the Company under the RBI Directions for
CICs, the Company has received the ‘Fit and Proper’ declaration from Mr. Agrawal for his
re-appointment, as a Director of the Company which has been taken on record by the Nomination
and Remuneration Committee.
The Company has received declarations from the Independent Directors, viz. Ms. Varsha Purandare
(DIN: 05288076) and Ms. Malvika Sinha (DIN: 08373142) stating that they meet the criteria of
independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of SEBI Listing
Regulations. In terms of Regulation 25(8) of SEBI Listing Regulations, they have also 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.
The Board is of the opinion that the Independent Directors of the Company possess requisite
qualifications, experience and expertise and that they hold the highest standards of integrity. In terms
of Section 150 of the Act read with the Companies (Appointment & Qualification of Directors) Rules,
2014, the Independent Directors of the Company have registered themselves with the data bank of
Independent Directors created and maintained by the Indian Institute of Corporate Affairs, Manesar.
20. NUMBER OF MEETINGS OF THE BOARD

Eight meetings of the Board were held during the year. For details of meetings of the Board, please
refer to the Corporate Governance Report, which forms part of this Annual Report.
21. EVALUATION OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS

Pursuant to the provisions of the Act and SEBI Listing Regulations, the Board has carried out an
annual evaluation of its own performance and of the individual Directors as well as an evaluation
of the working of all the Committees of the Board. The Board of Directors was assisted by the
Nomination and Remuneration Committee (“NRC”). The performance evaluation was carried out by
seeking inputs from all the Directors/Members of the Committees, as the case may be.
37
The Board of the Company followed the criteria as specified in the Guidance Note on the Board
Evaluation issued by SEBI for evaluating the performance of the Board as a whole, Committees
of the Board, Individual Directors and the Chairman. The criteria for evaluation of the Board as
a whole, inter alia, covered parameters such as Structure of the Board, Meetings of the Board,
Functions of the Board and Board & Management. The criteria for evaluation of Individual Directors
covered parameters such as knowledge and competency, fulfillment of functions, ability to function
as a team, etc. The criteria for evaluation of the Board Committees covered areas related to
mandate and composition, effectiveness of the committee, structure of the committee and meetings,
etc.
The feedback of the Independent Directors on their review of the performance of Non-Independent
Directors and the Board as a whole, the performance of the Chairman of the Company and the
assessment of the quality, quantity and timeliness of flow of information between the Company,
the Management and the Board was taken into consideration by the Board in carrying out the
performance evaluation.
22. POLICY ON APPOINTMENT OF DIRECTORS AND REMUNERATION POLICY OF THE COMPANY

The NRC develops the competency requirements of the Board based on the industry and the
strategy of the Company, conducts a gap analysis and recommends the reconstitution of the Board,
as and when required. It also recommends to the Board, the appointment of Directors having
good personal and professional reputation and conducts reference checks and due diligence of
all Directors before recommending them to the Board. Besides the above, the NRC ensures that
the new Directors are familiarized with the operations of the Company and endeavors to provide
relevant training to the Directors.
In accordance with the provisions of Section 178 of the Act, the Board of Directors have adopted a
Policy on Board Diversity and Director Attributes and a Remuneration Policy.
The Policy on Board Diversity and Director Attributes has been framed to encourage diversity of
thought, experience, knowledge, perspective, age and gender in the Board and to have in place, a
transparent Board nomination process.
The Remuneration Policy for Directors, Key Managerial Personnel (“KMP”) and all other employees
is aligned to the philosophy on the commitment of fostering a culture of leadership with trust.
The Remuneration Policy aims to ensure that the level and composition of the remuneration of the
Directors, KMP and all other employees is reasonable and sufficient to attract, retain and motivate
them to successfully run the Company.
Salient features of the Remuneration Policy, inter alia, includes:
l Remuneration in the form of Sitting Fees and Commission to be paid to Independent Directors
and Non-Independent Non-Executive Directors, in accordance with the provisions of the Act
and as recommended by the NRC;
l Remuneration to Managing Director / Executive Directors / KMPs and all other employees is
reasonable and sufficient to attract, retain and motivate them to run the Company successfully
and retain talented and qualified individuals suitable for their roles, in accordance with the
defined terms of remuneration mix or composition; and
l No remuneration would be payable to Directors for services rendered in any other capacity
unless the services are of a professional nature and the NRC is of the opinion that the
Director possesses requisite qualification for the practice of the profession and approval of the
Central Government has been received, if required, for paying the same.
The Company has also adopted a ‘Fit and Proper’ Policy for ascertaining the ‘fit and proper’ criteria
to be adopted at the time of appointment of directors and on a continuing basis, pursuant to the
RBI Directions for CICs. The Company has received the ‘Fit and Proper’ declarations from all the
Directors of the Company in April 2022, which have been taken on record by the NRC.
38
The Policy on Board Diversity and Director Attributes, Fit and Proper policy as also the
Remuneration Policy of the Company are made available on the Company’s website,
www.tatacapital.com
23. KEY MANAGERIAL PERSONNEL

Mr. Rajiv Sabharwal, Managing Director & CEO, Mr. Rakesh Bhatia, Chief Financial Officer and
Ms. Sarita Kamath, Head – Legal and Compliance & Company Secretary, are the KMPs of the
Company.
24. DIRECTORS’ RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls and compliance systems established and
maintained by the Company, work performed by the Internal, Statutory and Secretarial Auditors,
including audit of internal financial controls over financial reporting by the Statutory Auditors and
the reviews performed by the Management and the relevant Board Committees, including the Audit
Committee, the Board is of the opinion that the Company’s internal financial controls were adequate
and effective during FY 2021-22.
Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their
knowledge and ability, confirm that:
a) in the preparation of the annual accounts for FY2021-22, Indian Accounting Standards as per
the Companies (Indian Accounting Standards) Rules, 2015, as amended by the Companies
(Indian Accounting Standards) Rules, 2016, notified under Section 133 of the Act, other
relevant provisions of the Act, guidelines issued by Regulators as applicable to an NBFC and
other accounting principles generally accepted in India have been followed and that there are
no material departures therefrom;
b) they had selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company at the end of the financial year and of the profits and cash
flows of the Company for the year;
c) they had taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) they had prepared the annual accounts on a going concern basis;
e) they had laid down internal financial controls to be followed by the Company and that such
internal financial controls were adequate and operating effectively; and
f) they had devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.
The Financial Statements of the Company have been prepared in accordance with Ind AS, as
notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of
the Act.
25. VIGIL MECHANISM

The Company has established a Vigil Mechanism for its Directors and employees to report their
concerns or grievances. The said mechanism, inter alia, encompasses the Whistle Blower Policy,
the Fraud Risk Management Process, the mechanism for reporting of ethical concerns under
the TCOC and the ABAC Policy and it provides for adequate safeguards against victimization of
persons who use it.
The Vigil Mechanism provides access to Tata Capital’s Ethics Committee for reporting concerns and
grievances. It also provides access to the Compliance Officer under the Company’s ABAC Policy
and to the Chairperson of the Company’s Audit Committee / the Chief Ethics Counsellor under
39
the Company’s Whistle Blower Policy. Information regarding the mechanism and the channels for
reporting concerns are communicated to the relevant stakeholders. The Whistle Blower Policy, Vigil
Mechanism, TCOC and the ABAC Policy documents are available on the website of the Company,
www.tatacapital.com
26. DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013
The Company is committed to providing and promoting a safe and healthy work environment for
all its employees. A ‘Prevention of Sexual Harassment’ Policy, which is in line with the statutory
requirements, along with a structured reporting and redressal mechanism, including the constitution
of Internal Complaints Committee in accordance with the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“the POSH Act”), is in
place.
During FY 2021-22, no complaints were received under the provisions of the POSH Act.
27. AUDIT COMMITTEE

The details pertaining to the composition of the Audit Committee are included in the Corporate
Governance Report, which forms part of this Annual Report.
28. STATUTORY AUDITORS

M/s. B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/W-
100022) (“BSR”) were appointed as the Statutory Auditors of the Company at the AGM held on
August 29, 2017, for a term of five years, to hold office from the conclusion of the Twenty Sixth
AGM till the conclusion of the Thirty First AGM of the Company to be held in the year 2022.
The Reserve Bank of India (“RBI”) vide its Circular dated April 27, 2021 issued Guidelines for
Appointment of Statutory Central Auditors (“SCAs”)/Statutory Auditors (“SAs”) of Commercial Banks
(excluding Regional Rural Banks), Urban Co-operative Banks (“UCBs”) and Non-Banking Financial
Companies (“NBFCs”) (including Housing Finance Companies) (“RBI Circular/Guidelines”).
In terms of the aforementioned RBI Guidelines, the Statutory Auditors who have completed a tenure
of 3 years cannot continue to hold office as Statutory Auditors, even though they may not have
completed their present tenure as approved by the Members of the said entity. Accordingly, BSR
resigned as Statutory Auditors of the Company with effect from November 12, 2021.
Pursuant to RBI Guidelines and based on the recommendation of the Audit Committee,
the Board of Directors of the Company at its Meeting held on October 25, 2021, approved the
appointment of M/s. Khimji Kunverji & Co LLP, Chartered Accountants (ICAI Firm Registration
No. 105146W/W100621), as the Statutory Auditors of the Company with effect from
November 12, 2021 for a period of three consecutive years viz. FY 2021-22, FY 2022-23 and FY
2023-24, subject to the approval of the Members of the Company. Pursuant to Section 139(8)(i) of
the Companies Act, 2013 and RBI Guidelines, the Members at the Extraordinary General Meeting
of the Company held on November 23, 2021, approved the appointment of M/s. Khimji Kunverji &
Co LLP, as Statutory Auditors of the Company to hold office with effect from November 12, 2021 till
the conclusion of the Thirty-First AGM of the Company.
The Board has recommended for the approval of the Members the appointment of
M/s. Khimji Kunverji & Co LLP as Statutory Auditors of the Company for further period of two years
i.e. for FY 2022-23 and FY 2023-24. The Members of the Company may refer to the accompanying
Notice of the AGM of the Company.
29. ACCOUNTING STANDARDS FOLLOWED BY THE COMPANY

The Financial Statements of the Company have been prepared in accordance with Ind AS
as notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended by
the Companies (Indian Accounting Standards) Rules, 2016, notified under Section 133 of the
Companies Act, 2013. Further, the Company follows the Directions issued by RBI for CICs.
40
The Financial Statements have been prepared on an accrual basis under the historical cost
convention except for certain financial instruments that are measured at fair values at the end of
each reporting period as explained in the Accounting Policies. The Accounting Policies adopted in
the preparation of the Financial Statements have been consistently followed in the previous year.
30. EXPLANATION ON STATUTORY AUDITORS’ REPORT

There are no qualifications, reservations or adverse remarks or disclaimers made by
M/s. Khimji Kunverji & Co. LLP, Chartered Accountants, Statutory Auditors, in their Reports dated
April 26, 2022 on the Financial Statements of the Company for FY 2021-22.
31. SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors had appointed
M/s. Parikh & Associates, a firm of Company Secretaries in Practice, to undertake the Secretarial
Audit of the Company, for FY 2021-22. The Secretarial Audit Report, in the prescribed
Form No. MR-3, is annexed as Annexure ‘B’.
There are no qualifications, reservations or adverse remarks made by M/s. Parikh & Associates in
their Secretarial Audit Report dated April 26, 2022 on the secretarial and other related records of
the Company, for FY 2021-22.
32. INFORMATION ON MATERIAL CHANGES AND COMMITMENTS

There are no material changes or commitments affecting the financial position of the Company
which have occurred between March 31, 2022 and May 13, 2022, being the date of this Report.
33. SIGNIFICANT AND MATERIAL ORDERS

During the period under review, there were no significant or material orders passed by any regulator
or court or tribunal impacting the going concern status and Company’s operations in future.
34. RELATED PARTY TRANSACTIONS

As required under Regulation 23(1) of the SEBI Listing Regulations, the Company has
formulated a ‘Policy on Related Party Transactions’ for proper conduct and documentation
of all related party transactions. The same is available on the website of the Company at
www.tatacapital.com. Further, the Company also has in place a Framework on Related Party
Transactions for the purpose of identification, monitoring and approving of such transactions as per
the provisions of the Companies Act, 2013 and SEBI Listing Regulations.
Details of Related Party Transactions, as required to be disclosed by Indian Accounting Standard –
24 on “Related Party Disclosures” specified under Section 133 of the Act, read with the Companies
(Indian Accounting Standards) Rules, 2015, are given in the Notes to the Financial Statements.
Further, there were no transaction requiring disclosure under section 134(3)(h) of the Act. Hence,
the prescribed Form AOC–2 does not form a part of this report.
During the year, the Company has not entered into any transaction with Related Parties which is
not in its ordinary course of business or not on an arm’s length basis.
35.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
(A) Conservation of energy:
i. Steps taken/impact on conservation of energy:
The operations of the Company, being financial services related, require normal
consumption of electricity. The Company is taking every necessary step to reduce its
consumption of energy.
At Tata Capital regular Electrical audits as part of Energy Conservation activity are
41
conducted and suggested measures are implemented to achieve and improve energy
efficiency.
Several Office premises of Tata Capital have been retrofitted with LED lights to conserve
electricity, as LED lights consume less electricity as compared to the conventional CFL
bulbs. Air Conditioners’ temperature across all Tata Capital Offices are maintained at the
optimum ambient temperature (24-25 degree celsius) resulting into savings of energy and
also at some premises outgoing air conditioner duct design has been modified to provide
better energy efficiencies.
ii. Steps taken by the Company for utilising alternate sources of energy:
Tata Capital has installed a solar panel at its Thane office which produces close to
750 Watts of energy and which self illuminates and provides power to the garden and
security lights on the campus from dusk to dawn. The garden lights at the Thane office
are being retrofitted with LED bulbs that consume less electricity as compared to the
conventional incandescent or CFL bulbs.
iii. Capital investment on energy conservation equipment:
In view of the nature of the activities carried on by the Company, there is no capital
investment on energy conservation equipment.
(B) Technology absorption:

Being a Core Investment Company and not being involved in any industrial or manufacturing
activities, the Company has no particulars to report regarding technology absorption.
(C) Foreign Exchange Earnings and Outgo:

Foreign Exchange earned in terms of actual inflows during the year under review was
` 15.06 crore and the Foreign Exchange Outgo during the year under review in terms of
actual outflows was NIL.
36. ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on
March 31, 2022 is available on the website of the Company at
https://www.tatacapital.com/content/dam/tata-capital/pdf/investors-and-financial-reports/annual-reports/21-22/TCL-Annual-Report-21-22.pdf
37. TATA CAPITAL LIMITED EMPLOYEE STOCK PURCHASE / OPTION SCHEME

In order to develop and implement a long-term incentive program to effectively attract, motivate and
retain the best talent from the industry in a competitive environment, the Company has implemented
the Tata Capital Limited Employee Stock Purchase/Option Scheme (“Scheme”), which has been
amended from time to time. For implementation of the Scheme, the TCL Employee Welfare Trust
(“Trust”) was set up.
The Trust entrusted the NRC of the Board, with powers to effectively administer the Scheme. In
accordance with the Scheme the NRC, inter alia, determines the employees to whom an offer is to
be made based on certain performance criteria, the price at which the options can be exercised, the
quantum of offer to be made and the terms and conditions for vesting and exercise of the offer.
As at March 31, 2022, out of 7,02,34,526 Equity Shares of the Company allotted to the Trust,
1,74,36,528 Equity Shares of the Company aggregating 0.50% of its total paid up Equity Share
Capital were held by the persons to whom ESOPs were granted and were exercised by them under
the ESOP scheme.
42
The following disclosures, pertaining to ESOPs for the FY 2021-22, are being made as required
under Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014:
Sr. Particulars
No.
(i) Options Granted 76,74,172
(ii) Options Vested 44,05,000
(iii) Options Exercised 20,000
(iv) Total number of shares arising out of exercise of Options 20,000
(v) Options Lapsed 9,72,500
(vi) Exercise Price ` 51.00
(vii) Money realized by exercise of Options ` 10,20,000
(viii) Variation of terms of Options -
(ix) Total number of Options in force as at March 31, 2022 2,56,81,672
(Total No. of Options granted so far Less Total No. of Options exercised and
lapsed / forfeited)
Employee-wise details of options granted, during FY 2021-22, to (Options yet to be exercised)

a. Key Managerial Personnel:
Sr. Name of Key No. of Options granted
No. Managerial Personnel
(i) Mr. Rajiv Sabharwal 17,17,297
(ii) Mr. Rakesh Bhatia 3,21,993
(iii) Ms. Sarita Kamath 1,60,997
b. Any other employee who received a grant of Options in any one year of Options
amounting to five percent or more of Options granted during that year:
Name of Eligible Employees Number of Options granted

Mr. Anil Kaul* 6,43,986
Mr. Sarosh Amaria* 6,43,986
Ms. Abonty Banerjee 4,29,324
*Employees of the Subsidiary Companies
c. Identified employees who were granted Options, during any one year, equal to or
exceeding one percent of the issued capital (excluding outstanding warrants and
conversions) of the Company at the time of grant: None.
38. MANAGEMENT DISCUSSION AND ANALYSIS

A detailed analysis of the Company’s performance is discussed in the Management Discussion and
Analysis Report, which forms part of this Annual Report.
39. CORPORATE GOVERNANCE REPORT

The Corporate Governance Report, with the Practicing Company Secretaries’ Certificate thereon,
for the year under review prepared in accordance with the Part C of Schedule V of SEBI Listing
Regulations and as required under Regulation 34 of the Master Direction – Core Investment
Companies (Reserve Bank) Directions, 2016, forms part of this Annual Report.
43
40. SECRETARIAL STANDARDS

The Company is in compliance with SS - 1 i.e. Secretarial Standard on Meetings of the Board
of Directors and SS - 2 i.e. Secretarial Standard on General Meetings issued by the Institute of
Company Secretaries of India.
41. GREEN INITIATIVE

Section 136 of the Act and the Rules framed thereunder allows the Company to send its Financial
Statements by electronic mode to such Members whose shareholding is in dematerialized format
and whose email addresses are registered with the Depositories for communication purposes.
Shareholders who have not registered their email address with the Depositories are requested to
register the same. Further, in accordance with the Circular No. 2/2022 dated May 5, 2022 read with
Circular No. 02/2021 dated January 13, 2021 and Circular No. 20/2020 dated May 5, 2020 issued
by the Ministry of Corporate Affairs, the Notice of the AGM including the Annual Report of the
Company is being sent only through electronic mode to all the Members whose e-mail addresses
are registered with the Depositories.
A copy of this Annual Report along with the Financial Statements for FY 2021-22 of the Company’s
subsidiaries, is also available on the website of the Company, www.tatacapital.com.
42. ACKNOWLEDGEMENTS
The Directors would like to place on record their gratitude for the valuable guidance and support
received from the RBI, the NHB, SEBI, IRDA, Registrar of Companies, MAS, Financial Conduct
Authority, UK and other Government and Regulatory agencies and to convey their appreciation
to Tata Sons Private Limited (the holding company), the members, customers, bankers, lenders,
vendors and all other business associates for the continuous support given by them to Tata Capital.
The Directors also place on record their appreciation for all the employees of Tata Capital for their
commitment, team work, professionalism and the resilience and dedication demonstrated by them.
For and on behalf of the Board of Directors
Mumbai Saurabh Agrawal

May 13, 2022 Chairman
DIN: 02144558
44
Annexure A
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY
(“CSR”) ACTIVITIES
1. Brief outline on CSR Policy of the Company

Vision: To create shared value for the community at large in line with the Tata Group’s core purpose.
Purpose: We endeavour to improve the lives of the community, especially the socially and
economically underprivileged communities, by making a long term, measurable and positive impact
through projects in the areas of:
• Education
• Climate Action
• Health
• Skill Development
Sectors and Issues: In sectors and issues pertaining to the purpose mentioned above.
For details of the CSR Policy along with projects and programs, kindly refer to
https://www.tatacapital.com/content/dam/tata-capital/pdf/footer/TCL-CSR%20Policy.pdf
2. Composition of CSR Committee:

Number of
Number of
meetings
meetings
of CSR
Sr. Designation / Nature of of CSR
Name of Member(s) Committee
No. Directorship Committee
attended
held during
during the
the year
year
1. Mr. Saurabh Agrawal, Non-Executive Director 2 2
Chairman
2. Mr. F. N. Subedar Non-Executive Director 2 1
3. Ms. Malvika Sinha Independent Director 2 2
4. Ms. Aarthi Subramanian Non-Executive Director 2 2
5. Mr. Rajiv Sabharwal Managing Director & CEO 2 2
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects
approved by the board are disclosed on the website of the company.
Composition of CSR Committee:
https://www.tatacapital.com/content/dam/tata-capital/pdf/footer/TCL_Committees%27%20Composition.pdf
CSR Policy and CSR projects approved by the Board:

https://www.tatacapital.com/content/dam/tata-capital/pdf/footer/TCL-CSR%20Policy.pdf
4. Provide the 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.
Nil
45
6. Average net profit of the company as per section 135(5):

Net Profit
Financial Year (net of dividend)
(in ₹)
FY 2018-19 1,23,45,72,036
FY 2019-20 47,23,98,200
FY 2020-21 (22,10,43,610)
Average Net Profit 49,53,08,875
7. (a) Two percent of average net profit of the company as per section 135(5) :
` 99,06,178/- rounded off to ` 99,10,000/-
(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):
` 99,10,000 /-
8. (a) CSR amount spent or unspent for the financial year:
Amount Unspent (in `)
Total Amount Total Amount transferred to Amount transferred to any fund specified
Spent for the Unspent CSR Account as under Schedule VII as per second proviso
Financial Year. per section 135(6). to section 135(5).
(in `) Date of Name of the Date of
Amount Amount.
Transfer. Fund Transfer
99,10,000 Nil NA NA Nil NA
(b) Details of CSR amount spent against ongoing projects for the financial year:
Not Applicable
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Mode of Implementation
Item from Location of the project. - Through Implementing
the list of Local Mode of Agency
Amount spent
Sr. Name of the activities in area Implementation
for the project
No. Project Schedule (Yes/ - Direct CSR
(in `)
VII to the No). State District. (Yes/No) Name Registration
Act. number
1 Skill ii Yes Telangana Hyderabad 50,00,000 No Tata Strive CSR00002739
Development Warangal
Jagtial
Uttar Pradesh Aligarh
Andhra Visakhapatna
Pradesh Srikakulam
Karnataka Bengaluru
Maharashtra Thane
Delhi Delhi
Haryana Yamunanagar
Panchkula
Punjab Ludhiana
2 Healthcare i No Tamil Nadu Vellore 49,10,000 No CBM India CSR00001156
Jawadu Hills Trust
Total 99,10,000
46
(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) : ` 99,10,000/-
(g) Excess amount for set off, if any: Nil
Sr. Amount
Particular
No. (in `)
(i) Two percent of average net profit of the company as per section 135(5) 99,10,000
(ii) Total amount spent for the Financial Year 99,10,000
(iii) Excess amount spent for the financial year [(ii)-(i)] -
(iv) Surplus arising out of the CSR projects or programmes or activities of Nil
the previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Not Applicable
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding
financial year(s):
Not Applicable
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) : Not Applicable
(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
Saurabh Agrawal Farokh N. Subedar

Chairman, CSR Committee
Member, CSR Committee
Non-Executive Director
DIN: 02144558
DIN: 00028428
Malvika Sinha Aarthi Subramanian

Member, CSR Committee Member, CSR Committee
Independent Director Non-Executive Director
DIN: 08373142 DIN: 07121802
Rajiv Sabharwal
Member, CSR Committee
Managing Director & CEO
DIN: 00057333
47
Annexure B
FORM No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
(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,
Tata Capital Limited
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by Tata Capital Limited (hereinafter called the “Company”).
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and
other records maintained by the Company, to the extent the information provided by the Company, its
officers, agents and authorised representatives during the conduct of Secretarial Audit, the explanations
and clarifications given to us and the representations made by the Management and considering the
relaxations granted by the Ministry of Corporate Affairs and Securities and Exchange Board of India
warranted due to the spread of the COVID-19 pandemic, we hereby report that in our opinion, the
Company has, during the audit period covering the financial year ended on March 31, 2022 generally
complied with the statutory provisions listed hereunder and also that the Company has proper Board
processes and compliance mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records made
available to us and maintained by the Company for the financial year ended on March 31, 2022
according to the provisions of:
(i) The Companies Act, 2013 (the “Act”) and the rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (“SCRA”) and the rules made thereunder; (as may
be applicable to the Company)
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (as may be
applicable to the Company)
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to
the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial
Borrowings; (as may be applicable to the Company)
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (“SEBI Act”), as amended from time to time:
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018 (Not applicable to the Company during the audit period);
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,
2014 and The Securities and Exchange Board of India (Share Based Employee Benefits and
Sweat Equity) Regulations, 2021; (Not applicable to the Company during the audit period)
48
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)
Regulations, 2008 and The Securities and Exchange Board of India (Issue and Listing of Non-
Convertible Securities) Regulations, 2021;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the Companies Act, 2013 and dealing with client (Not
applicable to the Company during the audit period);
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
and The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations,
2021 (Not applicable to the Company during the audit period) and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not
applicable to the Company during the audit period).
(vi) Other laws applicable specifically to the Company are:
(a) All the Rules, Regulations, Directions, Guidelines and Circulars including Master Direction -
Core Investment Companies (Reserve Bank) Directions, 2016 (“Directions”), issued by the
Reserve Bank of India, as amended from time to time.
(b) The Securities and Exchange Board of India Act, 1992 and The Securities and Exchange
Board of India (Venture Capital Funds) Regulations, 1996, as amended from time to time.
(c) The Securities and Exchange Board of India (Alternative Investment Funds) Regulations,
2012, as amended from time to time.
We have also examined compliance with the applicable clauses of the following:
Secretarial Standards issued by The Institute of Company Secretaries of India with respect to Board
and General Meetings.
The Listing Agreements entered into by the Company with the National Stock Exchange of India
Limited with respect to Non-Convertible Debentures issued by the Company on a private placement
basis read with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review, the Company has complied with the provisions of the Act, Rules,
Regulations, Guidelines, standards etc.
We further report that:
The Board of Directors of the Company is constituted with balance of Executive Directors,
Non-Executive Directors and Independent Directors as per Companies Act, 2013. The changes
in the composition of the Board of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.
We report that as regards the compliance of Regulations 17(1)(b) of SEBI LODR, 2015 made
applicable to the Company effective September 7, 2021 on a comply or explain basis until
March 31, 2023, the Company has been providing the necessary explanation in the quarterly
compliance report on Corporate Governance submitted to the Stock Exchange under Regulation
27(2)(a) of SEBI LODR, 2015.
Adequate notice was given to all Directors to schedule the Board Meetings, Agenda and detailed
notes on Agenda were sent at least seven days in advance for Meetings other than those held at
shorter notice, and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the meeting.
As per the minutes, the decisions at the Board Meetings were taken unanimously.
We further report that there are adequate systems and processes in the Company commensurate
with the size and operations of the Company to monitor and ensure compliance with applicable
laws, rules, regulations and guidelines.
49
We further report that during the audit period the Company had following events which had bearing
on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines,
standards etc.
i. The Company had issued and allotted 10,000 Unsecured, Redeemable, Non- Convertible
Debentures for an amount not exceeding ` 1,000 crore, on a private placement basis, in one
or more tranches.
ii. The Company has redeemed 3750 Unsecured Redeemable Non-Convertible Debentures for
an aggregate amount of ` 375 crore, issued on a private placement basis.
iii. Consequent to the Put Option exercised by the Company, the Company had redeemed
4,98,800 Cumulative Redeemable Preference Shares of ` 1000 each, aggregating to
` 49.88 crore, issued on Private Placement basis.
iv. The Company has issued 37,000 units of Commercial Papers (“CP”) for an aggregate amount
of ` 1850 crore (Face Value).
v. The Company has redeemed 36,000 units of CP for an aggregate amount of ` 1800 crore
(Face value).
vi. The Company has an Employee Stock Purchase / Option Scheme (“ESOP Scheme”) which
is implemented through the TCL Employee Welfare Trust (“Trust”) to whom the Company had
allotted Equity Shares in the past. During the year, the Trust has transferred 20,000 Equity
Shares to the employees of the Company and its subsidiary companies and has bought back
3,22,469 Equity Shares in terms of the ESOP Scheme.
For Parikh & Associates

Company Secretaries
Jigyasa N. Ved
Mumbai (Partner)
April 26, 2022 FCS No: 6488 CP No: 6018
UDIN: F006488D000207051
PR No.: 1129/2021
This Report is to be read with our letter of even date which is annexed as Annexure I and forms an
integral part of this Report.
50
Annexure I
To,
The Members
Our Report of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the Management of the Company. Our
responsibility is to express an opinion on these Secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable
assurance about the correctness of the contents of the Secretarial records. The verification was
done on test basis to ensure that correct facts are reflected in Secretarial records. We believe that
the process and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of
Accounts of the Company.
4. Wherever required, we have obtained the Management Representation about the compliance of
laws, rules and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations,
standards is the responsibility of Management. Our examination was limited to the verification of
procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of
the efficacy or effectiveness with which the Management has conducted the affairs of the Company.

Company Secretaries
Jigyasa N. Ved
Mumbai (Partner)
April 26, 2022 FCS No: 6488 CP No: 6018
UDIN: F006488D000207051
PR No.: 1129/2021
51
Corporate Governance Report
I. Company’s Philosophy on Corporate Governance

The Company recognises its role as a corporate citizen and endeavours to adopt the best practices
and the highest standards of corporate governance through transparency in business ethics,
accountability to its customers, investors, regulators and other stakeholders. The Company’s
activities are carried out in accordance with good corporate practices and the Company is
constantly striving to better these practices by adopting best practices.
The Company believes that governance practices enable the Management to direct and control the
affairs of the Company in an efficient manner and to achieve the Company’s goal of maximising
value for all its stakeholders. The Company will continue to focus its resources, strengths and
strategies to achieve its vision, while upholding the core values of transparency, integrity, honesty
and accountability, which are fundamental to Tata companies.
As a part of the Tata Group, Tata Capital has a strong legacy of fair, transparent and ethical
governance practices. The Corporate Governance philosophy is further strengthened with the
adherence to the Tata Business Excellence Model (“TBEM”) as a means to drive excellence, the
Key Performance Metrics for tracking progress on long-term strategic objectives and the Tata Code
of Conduct (“TCOC”), which articulates the values, ethics and business principles and serves as a
guide to the Company, its Directors and employees, supplemented with an appropriate mechanism
to report any concern pertaining to non-adherence to the TCOC. In addition, the Company has
adopted a Vigil Mechanism, an Affirmative Action Policy, a Policy against Sexual Harassment at the
Workplace, a Fit and Proper Policy for ascertaining the fit and proper criteria of the directors at the
time of appointment and on a continuing basis, a Policy on Board Diversity and Director Attributes,
a Code of Conduct for Non-Executive Directors, an Occupational Health and Safety Management
System, Anti-Bribery and Anti-Corruption (“ABAC”) Policy and Whistle blower policy.
The Company has signed the Tata Brand Equity and Business Promotion (“BEBP”) Agreement with
Tata Sons Private Limited for subscribing to the TATA BEBP Scheme. The Company abides by the
TCOC and the norms for using the Tata Brand.
II. Board of Directors

a) As on March 31, 2022, the Company has 6 (six) Directors. Out of the 6 (six), 2 (two) are
Independent, Non-Executive Directors; 3 (three) are Non-Independent, Non-Executive and 1
(one) is an Executive Director. The profile of Directors can be found on the Company’s website
www.tatacapital.com.
b) None of the Directors on the Board holds Directorship in more than 7 (seven) equity listed
companies. Further, none of the Independent Directors (IDs) of the Company serves as an
ID in more than 7 (seven) equity listed companies. None of the IDs serve as a whole-time
director / managing director in any listed entity. None of the Directors holds directorship in
more than 20 (twenty) Indian companies, with not more than 10 (ten) public limited companies.
None of the Directors is a member of more than 10 committees or acts as chairperson of
more than 5 committees (being Audit Committee and Stakeholders Relationship Committee, as
per Regulation 26(1) of SEBI (Listing Obligations and Disclosure Requirements), 2015 (“SEBI
Listing Regulations”) across all the public limited companies in which he/she is a Director.
Necessary disclosures regarding Committee positions in other public companies as on March
31, 2022 have been made by the Directors. None of the Directors are related to each other.
c) Independent Directors are non-executive directors as defined under Regulation 16(1)(b) of the
SEBI Listing Regulations read with Section 149(6) of the Companies Act, 2013 (“Act”) along
with rules framed thereunder. In terms of Regulation 25(8) of SEBI Listing Regulations, they
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.
Based on the declarations received from the Independent Directors, the Board of Directors
has confirmed that they meet the criteria of independence as mentioned under Regulation
52
16(1)(b) of the SEBI Listing Regulations and that they are independent of the management.
Further, the Independent Directors have included their names in the data bank of Independent
Directors maintained with the Indian Institute of Corporate Affairs in terms of Section 150 of
the Act read with Rule 6 of the Companies (Appointment & Qualification of Directors) Rules,
2014.
d) 8 (Eight) Board Meetings were held during the year under review and the gap between two
meetings did not exceed one hundred and twenty days. The said meetings were held on:
April 23, 2021, May 7, 2021, May 31, 2021, July 29, 2021, October 25, 2021,
January 31, 2022, March 17, 2022 and March 23, 2022. The necessary quorum was present
for all the meetings.
e) The names and categories of the Directors on the Board, their attendance at Board Meetings
held during the year under review and at the last Annual General Meeting (“AGM”), name of
other listed entities in which the Director is a director and the number of Directorships and
Committee Chairpersonships / Memberships held by them in other public limited companies as
on March 31, 2022 and list of core skills / expertise / competencies identified by the Board of
Directors are given herein below:
Name of the Director Category Skills / Expertise / Number Whether Number of Directorships Number of Committee Directorship in other
(DIN) Competencies of Board attended in other Public positions held in other listed entity (Category of
Meetings last AGM Companies* Public Companies** Directorship)
attended held on
during FY June 28, Chairperson Member Chairperson Member
2021-2022 2021
Mr. Saurabh Agrawal Non-Independent, Leadership, 8 Yes 4 7 - 2 1. Tata Steel Limited@
(Chairman) Non- Executive Strategy, Finance, 2. The Tata Power Company
(02144558) Governance, Limited@
Regulatory Affairs,
3. Voltas Limited@
Capital Markets
and Merger & 4. Tata AIG General
Acquisitions Insurance Company
Limited (Debt Listed)@
Mr. F.N. Subedar Non-Independent, Leadership, 8 No - 4 2 4 1. Tata Investment

(00028428) Non- Executive Strategy, Company Corporation Limited@
Administration, 2. Tata Capital Financial
Finance, Taxation, Services Limited (Debt
Accounts, listed) @
Operation,
3. Tata Realty and
Governance,
Infrastructure Limited (Debt
Regulatory Affairs
Listed) @
Ms. Varsha Purandare Independent Leadership, 8 Yes 1 9 3 9 1. Deepak Fertilisers
(05288076) Strategy, and Petrochemicals
Credit, Forex, Corporation Limited#
Risk, Treasury, 2. Orient Cement Limited#
Capital Markets,
3. The Federal Bank Limited#
Investment
Banking, 4. Tata Capital Financial
Private Equity, Services Limited (Debt
Governance, Listed) #
Regulatory Affairs 5. Tata Cleantech Capital
Limited (Debt Listed) #
6. Tata Motors Finance
Limited (Debt Listed) #
7. Tata Motors Finance
Solutions Limited (Debt
Listed) #
8. TMF Holdings Limited
(Debt Listed) #
9. Shaily Engineering Plastics
Limited#
Ms. Malvika Sinha Independent Leadership, 8 Yes - 3 - 2 1. Mahanagar Gas Limited#
(08373142) Strategy, Finance, 2. Mahindra Logistics
Accounts, Forex, Limited#
Human Resources,
Banking
Operations,
Governance,
Regulatory Affairs
53
Name of the Director Category Skills / Expertise / Number Whether Number of Directorships Number of Committee Directorship in other
(DIN) Competencies of Board attended in other Public positions held in other listed entity (Category of
Meetings last AGM Companies* Public Companies** Directorship)
attended held on
during FY June 28, Chairperson Member Chairperson Member
2021-2022 2021
Ms. Aarthi Subramanian Non-Independent, Leadership, 8 No 2 7 - 3 1 Tata Consultancy Services

(07121802 ) Non- Executive Strategy, Digital, Limited@
Operation,
Governance,
Regulatory Affairs
Mr. Rajiv Sabharwal Non-Independent, Leadership, 8 Yes 3 5 1 2 1. Tata Cleantech Capital

(Managing Director & Executive Strategy, Finance, Limited (Debt Listed) @
CEO) Risk, Treasury, 2. Tata Capital Financial
(00057333) Credit, Private Services Limited (Debt
Equity, Governance, Listed) @
Regulatory Affairs,
3. Tata Capital Housing
Retail Banking,
Finance Limited (Debt
Banking Operations
Listed) @
4. Tata Realty and
Infrastructure Limited (Debt
Listed) @
@ Non-Independent, Non-Executive # Independent, Non-Executive

* Excludes directorship in the Company, private companies, foreign companies and companies under Section 8 of the Act.
** Pertains to memberships/chairpersonships of the Audit Committee and Stakeholders’ Relationship Committee of Indian public companies (excluding
the Company) as per Regulation 26(1)(b) of the SEBI Listing Regulations.
f) The Board believes that the skills / competencies / expertise, as mentioned in the above table
are required for the business of the Company and the Directors of the Company possess
these skills / competencies / expertise for it to function effectively.
g) During FY2021-22, 1 (one) meeting of the Independent Directors was held on March 30, 2022
where in all the Independent Directors attended the meeting. The Independent Directors,
inter-alia, reviewed the performance of the Non-Independent Directors, Board as a whole and
the Chairman of the Company, taking into account the views of Executive Director and Non-
Executive Directors.
h) The Board periodically reviews the compliance reports of all laws applicable to the Company.
During FY 2021-22, information as mentioned in Part A of Schedule II of the SEBI Listing
Regulations, has been placed before the Board for its consideration.
i) None of the Directors are related inter-se.
j) Details of equity shares of the Company held by the Directors as on March 31, 2022 are given
below:
# Name of the Director Category No. of Equity

Shares
1 Mr. Farokh N Subedar Non-Executive Director 2,43,716
The Company has not issued any convertible instruments.
III. Committees of the Board

The Board has constituted Committees with specific terms of reference to focus on specific areas.
These include the Audit Committee, the Nomination and Remuneration Committee, the Risk
Management Committee, the Finance and Asset Liability Supervisory Committee, the Information
Technology Strategy Committee, the Corporate Social Responsibility Committee and the
Stakeholders Relationship Committee.
The Company Secretary is the Secretary of all the aforementioned Committees. The Board of
Directors and the Committees also take decisions by circular resolutions which are noted by the
Board/respective Committees of the Board at their next meetings. The Minutes and the gist of minutes
of meetings of all Committees of the Board are circulated to the Board of Directors for noting.
54
i. Audit Committee
Composition, Meetings and Attendance
During FY 2021-22, 6 (Six) meetings of the Audit Committee were held on the following dates:
April 23, 2021, July 26, 2021, September 17, 2021, October 21, 2021, January 27, 2022 and
March 10, 2022.
The composition of the Audit Committee as on date of this Report and the attendance details
of meetings during FY 2021-22 is, given below:
Name of the Member(s) Category No. of Meetings

Held Attended
Ms. Varsha Purandare Chairperson and 6 6
Independent Director
Ms. Malvika Sinha Independent Director 6 6
Mr. Farokh N. Subedar Non-Executive Director 6 6
The composition of the Audit Committee is in line with the provisions of Section 177 of the
Act and the Regulation 18 of the SEBI Listing Regulations. All the Members have the ability to
read and understand financial statements and have relevant finance and / or audit experience.
The previous AGM of the Company was held on June 28, 2021 and was attended by
Ms. Varsha Purandare, Chairperson of the Audit Committee.
Terms of reference
The Board has adopted an Audit Committee Charter which defines the composition of the
Audit Committee, its authority, role, responsibilities and powers and reporting functions in
accordance with the Act and SEBI Listing Regulations. The Charter is reviewed from time to
time and is available on the website of the Company, www.tatacapital.com
The responsibilities of the Audit Committee, inter alia, include:
– Review of the financial reporting process, the system of internal financial controls,
the audit process, the Company’s process for monitoring compliance with laws and
regulations and the Code of Conduct;
– To recommend the appointment and removal of the Auditors and their remuneration and
discuss with the Auditors the nature and scope of their audit before commencement;
– To examine the financial statements, financial results and the Auditors’ Report thereon;
– To evaluate the financial and risk management systems;
– To review the adequacy and performance of Risk Based Internal Audit function;
– To perform activities and carry out functions as laid down in the Framework for Related
Party Transactions adopted by the Board;
– To review findings of internal investigations, frauds, irregularities, etc.; and
– To review the functioning of and compliance with the Company’s Whistle Blower Policy
The Board has accepted all the recommendations made by the Audit Committee during the
year.
Besides the Members of the Committee, meetings of the Audit Committee are attended by the
Managing Director & CEO, the Chief Financial Officer, the Company Secretary, the Statutory
Auditors and the Chief Internal Auditor. The Internal Audit function is headed by the Chief
Internal Auditor of the Company who reports to the Audit Committee to ensure independence
of operations.
55
ii. Nomination and Remuneration Committee (“NRC”)

During FY 2021-22, 2 (Two) meetings of the NRC were held on the following dates:
April 19, 2021, which was adjourned and continued on April 23, 2021 and May 31, 2021.
The composition of the NRC as on date of this Report and the attendance details of meetings
during FY 2021-22 is, given below:

Held Attended
Ms. Varsha Purandare Chairperson and Independent 2 2
Director
Mr. Saurabh Agrawal Non-Executive Director 2 2
The composition of the NRC is in line with the provisions of Section 178 of the Act and
Regulation 19 of SEBI Listing Regulations.
The previous AGM of the Company was held on June 28, 2021 and was attended by
Ms. Varsha Purandare, Chairperson of the NRC.
Terms of reference
The responsibilities of the NRC, inter alia, include:
– To formulate the criteria for determining qualifications, fit & proper status, positive
attributes and independence of a director and recommend to the Board, a policy relating
to the remuneration for the directors, KMPs, the Executive team and other employees;
– To formulate the criteria for evaluation of performance of Independent Directors and the
Board of Directors;
– To devise a policy on diversity of Board of Directors;
– To identify persons who are qualified to become Directors and who may be appointed
in Senior Management in accordance with the criteria laid down and recommend to the
Board, their appointment and removal;
– To decide whether to extend or continue the term of appointment of the Independent

Director, on the basis of the report of performance evaluation of Independent Directors;
– To recommend to the Board, all remuneration, in whatever form, payable to Senior

Management; and
– To decide commission payable to the Directors, subject to prescribed limits and approval
of shareholders.
Performance Evaluation Criteria for Independent Directors

The performance evaluation criteria for Independent Directors is based on various factors
which includes participation and contribution by a director, commitment, effective deployment
of knowledge and expertise, integrity and maintenance of confidentiality and independence of
behavior and judgment.
iii. Risk Management Committee (“RMC”)

During FY 2021-22, 4 (Four) meetings of the RMC were held on the following dates:
May 27, 2021, August 09, 2021, November 15, 2021 and February 04, 2022.
56
The composition of the RMC as on date of this Report and the attendance details of meetings
during FY 2021-22 is, given below:

Held Attended
Mr. Saurabh Agrawal Chairman and Non-Executive 4 4
Director
Ms. Varsha Purandare Independent Director 4 4
Mr. Rajiv Sabharwal Managing Director & CEO 4 4
The composition of the RMC is in line with the provisions of Regulation 21 of SEBI Listing
Regulations.
Terms of reference
The responsibilities of the RMC, inter alia, include:
– To assist the Board in its oversight of various risks;
– To review and analyse risk exposure related to specific issues and provide oversight of
risk across the Company;
– To review risk profile of the subsidiaries;
– To formulate a detailed Risk Management Policy and oversee the implementation of the
same, including evaluating the adequacy of risk management systems;
– To ensure whether appropriate methodology, processes and systems are in place to

monitor and evaluate risks associated with the business of the Company; and
– To review the appointment, removal and terms of remuneration of the Chief Risk Officer.
iv. Finance and Asset Liability Supervisory Committee (“ALCO”)

During FY 2021-22, 4 (Four) meetings of the ALCO were held on the following dates:
May 27, 2021, August 09, 2021, November 15, 2021 and February 04, 2022.
The composition of the ALCO as on date of this Report and details of attendance at the ALCO
meetings held during FY 2021-22 is, given below

Held Attended
Director
Terms of reference
The responsibilities of the ALCO, inter alia, include to oversee:
– Asset Liability Management;
– Debt composition and plan of the Company for fund raising; and
– Resource raising policy of the Company.
57
v. Information Technology Strategy Committee (“ITSC”)

During FY 2021-22, 2 (Two) meetings of the ITSC were held on the following dates:
August 18, 2021 and February 09, 2022.
The composition of the ITSC as on date of this Report and details of attendance at the ITSC
meetings held during FY 2021-22 is, given below

Held Attended
Ms. Malvika Sinha Chairperson and Independent 2 2
Director
Ms. Aarthi Subramanian Non-Executive Director 2 2
Mr. Bhavin Purohit Chief Technology Officer 2 2
Terms of reference
The responsibilities of the ITSC, inter alia, include:
– To approve the IT strategy and policy documents;
– To institute an effective governance mechanism and risk management process for
all outsourced IT operations and to do all such acts as may be required under the IT
Directions in respect of the outsourced IT operations; and
– To recommend the appointment of IT / IS Auditor and review the IT / Information
Systems Audit report and provide its observation / recommendations to the Board.
vi. Corporate Social Responsibility (“CSR”) Committee

During FY 2021-22, 2 (Two) meetings of the CSR were held on the following dates:
May 05, 2021 and March 25, 2022.
The composition of the CSR Committee as on date of this Report and details of attendance at
the CSR meetings held during FY 2021-22 is, given below

Held Attended
Director
Ms. Aarthi Subramanian Non-Executive Director 2 2
Terms of reference
The responsibilities of the CSR Committee, inter alia, include:
– To formulate and recommend to the Board, a CSR Policy which shall include the guiding
principles for selection, implementation and monitoring of activities to be undertaken by
the Company as specified in Schedule VII of the Act (“CSR Activities”) as well as for
formulation of the annual action plan by the Company;
58
– To formulate and recommend to the Board an Annual Action Plan in pursuance of the
CSR Policy and in accordance with the applicable Rules. Recommend alteration in
such Plan to the Board of Directors, at any time during the financial year, based on the
reasonable justification to that effect;
– To recommend the amount of expenditure to be incurred on CSR activities;
– To monitor the CSR Policy of the Company and expenditure of the subsidiaries from time
to time and instituting a transparent monitoring mechanism for implementation of the
CSR projects or programs or activities undertaken by the Company;
– To oversee the Company’s conduct with regard to its corporate and societal obligations
and its reputation as a responsible corporate citizen; and
– To oversee activities impacting the quality of life of the beneficiaries of the CSR projects.
vii. Stakeholders Relationship Committee (“SRC”)

During FY 2021-22, 1 (one) meeting of the SRC was held on February 21, 2022.
The composition of the SRC as on date of this Report and details of attendance at the SRC
meeting held during FY 2021-22 is, given below:

Held Attended
Ms. Aarthi Subramanian Chairperson and Non-Executive 1 1
Director
The responsibilities of the SRC, inter alia, is to consider and resolve the grievances/complaints
of security holders of the Company. Ms. Aarthi Subramanian, Chairperson of SRC, could not
attend the previous AGM held on June 28, 2021 and authorised Ms. Malvika Sinha, Member
of SRC, to attend the meeting on her behalf.
a) Name, designation and address of the Compliance Officer:

Ms. Sarita Kamath, Head – Legal and Compliance & Company Secretary.
11th Floor, Tower A, Peninsula Business Park,
Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013
Telephone No.: 022-6606 9000
b) Details of Complaints received from the Debenture holders (only Non-Convertible
Debentures issued on Private Placement basis are listed on NSE) received and
redressed during the FY 2021-2022 are as follows:
Opening Balance Received during Resolved during Closing Balance

the year the year
Nil Nil Nil Nil
c) During FY 2021-22, no complaints were received from the Equity Shareholders of the
Company.
IV. Remuneration of Directors

The Company paid Sitting fees to the Non-Executive Directors (“NEDs”) and Independent
Directors (“IDs”) for attending meetings of the Board and the Committees of the Board and will pay
Commission for the FY 2021-22, within the maximum prescribed limits to the NEDs and IDs who
59
were Directors of the Company during FY 2021-22, as recommended by the NRC and approved
by the Board at their respective meetings held on May 13, 2022. The details of the same are, as
under:
a. Non-Executive Directors:
Name Sitting Fees paid for Commission to be
attending Board and paid for
Committee Meetings FY 2021-22
held during FY 2021-22
*Mr. Saurabh Agrawal, ` 4,00,000 Nil
Chairman and Non-Executive Director
Mr. Farokh N. Subedar, ` 8,20,000 ` 30,00,000
Ms. Varsha Purandare, ` 11,50,000 ` 30,00,000
Independent director
Ms. Malvika Sinha, ` 10,00,000 ` 30,00,000
Independent Director
*Ms. Aarthi Subramanian, ` 5,50,000 Nil
*In line with the internal guidelines of the Company, no payment is made towards commission
to the Non-Executive Directors of the Company, who are in full time employment with any
other Tata company.
None of the NEDs and IDs had any pecuniary relationships or transactions with the Company
during the year under review.
b. Managing Director & CEO

Terms of Appointment and Remuneration of Mr. Rajiv Sabharwal, Managing Director & CEO:
Period of Contract April 1, 2018 to March 31, 2023
Notice Period and The Contract with the Managing Director & CEO may be terminated
Severance Fees earlier by either party giving the other Party six months’ notice of
such termination or the Company paying six months’ remuneration
in lieu thereof. There is no separate provision for payment of
Severance fees.
Employee Stock 61,60,000 ESOPs granted to be vested in 4 tranches over a period of
Options (“ESOP”) 4 years and exercisable over a period of 7 years.
ESOPs cost: ` 3,72,55,864
Note:
● No ESOPs have been issued at a discount
● The compensation cost of Stock Options as mentioned above
represents the amortised cost of the Fair Value of the Stock
Options charged to the Statement of Profit and Loss.
Salary for ` 5,55,95,534
FY2021-22
Incentive ` 5,00,00,000
Remuneration for FY
2021-22 to be paid
in FY 2022-23
Perquisites and ` 20,30,500
allowances
Retirement benefits ` 73,68,520
60
The Members at its meetings held on March 29, 2018 and September 8, 2020 have approved
the terms of remuneration including the Minimum remuneration to be paid to Mr. Sabharwal in
the event of loss or inadequacy of profits in any financial year during his tenure.
Accordingly, the NRC and the Board of Directors at their respective meetings held on
May 13, 2022, recommended and approved an Incentive Remuneration of ` 5,00,00,000/-
subject to approval of the Members of the Company, payable to Mr. Sabharwal for
FY 2021-22. As per the Long Term Incentive plan for FY 2021-22 (LTI 2022) of the Company,
Mr. Sabharwal is entitled to LTI 2022 value of ` 4,00,00,000/-
V. General Body Meetings

i. General Meeting
a. Annual General Meeting
Financial Date Time Venue Special Resolutions passed
Year
2018-19 July 08, 2019 10:00 a.m. 11th Floor, Tower A, Peninsula 1. Issue and Offer of
Business Park, Ganpatrao 14,70,58,823 Equity Shares
Kadam Marg, Lower Parel, of ` 10 each aggregating upto
Mumbai 400 013. ` 750 crore, on a Preferential
Basis: Offer – 1
2. Issue and Offer of
14,70,58,823 Equity Shares
of ` 10 each aggregating upto
` 750 crore, on a Preferential
Basis: Offer – 2
3. Issue and Offer of 9,80,39,215
Equity Shares of ` 10 each
aggregating upto ` 500 crore,
on a Preferential Basis:
Offer – 3
4. Issue and Offer of 9,80,39,215
Equity Shares of ` 10 each
aggregating upto ` 500 crore,
on a Preferential Basis:
Offer - 4
2019-20 September 08, 3:00 p.m. Meeting conducted through VC 1. Payment of Commission
2020 / OAVM pursuant to the MCA to Non-Executive (Non-
Circular Independent and
Independent) Directors of the
Company
2. Terms of Remuneration of
Mr. Rajiv Sabharwal,
Managing Director & CEO of
the Company
2020-21 June 28, 2021 10:00 a.m Meeting conducted through VC Nil
/ OAVM pursuant to the MCA
Circular
b. Extraordinary General Meeting (“EGM”):

EGM was held on November 23, 2021 at 10:00 A.M. through VC / OAVM for appointment of
Statutory Auditors and for re-appointment of Ms. Varsha Purandare (DIN: 05288076) as an
Independent Director of the Company.
c. Whether any special resolution passed last year through postal ballot – details of voting
pattern – None.
d. Person who conducted the postal ballot exercise – Not applicable.
e. Whether any special resolution is proposed to be conducted through postal ballot – None.
f. Procedure for postal ballot – Not applicable.
61
VI. Means of Communication

The ‘Investor Information & Financials’ section on the Company’s website (www.tatacapital.com)
keeps the investors updated on material developments in the Company by providing key and timely
information such as Financial Results, Annual Reports, Contact details of persons responsible for
investor grievances, etc. The debenture holders can also send in their queries/complaints at the
designated email address at compliance.ncd@tatacapital.com and the Cumulative Redeemable
Preference Shares (“CRPS”) holders can send their queries/complaints at crps@tatacapital.com.
Financial Results are normally published in Business Standard Newspaper.
VII. General Information for Members and Debenture holders

The Company is registered with the Registrar of Companies, Maharashtra, Mumbai. The
Corporate Identity Number allotted to the Company by the Ministry of Corporate Affairs is
U65990MH1991PLC060670.
i.
Details of Debenture Trustees and the Registrar and Transfer Agents of the Company
are, given below:
Debenture Trustees
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,17,R. Kamani Marg, Ballard Estate, Mumbai - 400001.
Website: www.idbitrustee.com,Tel: 022-40807000, Fax: +912266311776.
e-mail: itsl@idbitrustee.com
Registrar and Transfer Agents - Equity Shares, Preference Shares and Non-
Convertible Debentures issued on a Private Placement basis
TSR Consultants Private Limited
(Formerly known as TSR Darashaw Consultants Private Limited)
(Subsidiary of Link Intime India Private Limited)
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli West, Mumbai - 400083
Website: www.tcplindia.co.in, Phone No.: 022- 66568484
E-mail: csg-unit@tcplindia.co.in
ii. Annual General Meeting for FY 2021-22

Date: June 28, 2022
Time: 10:00 A.M.
Venue: Through Video Conferencing / Other Audio Visual Means
iii. Financial Year: April 1, 2021 to March 31, 2022

iv. Dividend Payment date: On or after June 28, 2022
v. Listing on Stock Exchange
Only Unsecured, Redeemable, Non-Convertible Debentures issued by the Company on a
private placement basis are listed on the National Stock Exchange of India Limited.
National Stock Exchange of India Limited, Exchange Plaza, C-1, Block G, Bandra Kurla
Complex, Bandra (East), Mumbai 400 051
Listing Fees as applicable have been paid for FY 2021-22 and FY 2022-23.
vi. Stock Codes/Symbol

NSE: TATACAP
vii. Market Price data- high, low during each month in last financial year – Not Applicable
viii.
Performance in comparison to broad-based indices such as BSE sensex, CRISIL Index
etc. – Not Applicable
62
ix. In case of securities are suspended from trading, the directors report shall explain the
reason thereof. – Not Applicable
x. Share Transfer System:
In terms of Regulation 40(1) of SEBI Listing Regulations, as amended from time to time,
securities can be transferred only in dematerialized form with effect from April 1, 2019, except
in case of request received for transmission or transposition of securities. All the equity shares
of the Company are in dematerialized form, hence, transfers of equity shares in electronic
form are effected through the depositories with no involvement of the Company.
xi. Distribution of shareholding as on March 31, 2022:

• Equity Shareholding:
No. of Shares Shareholding % of total No. of % of total
Equity Shares Shareholders Equity
shareholders
1-1000 7,072 0.00 12 1.55
1001-5000 9,78,002 0.03 241 31.22
5001-10000 14,54,605 0.04 163 21.11
10001-20000 23,68,116 0.07 158 20.47
20001-30000 10,63,431 0.03 43 5.57
30001-40000 12,41,740 0.04 36 4.66
40001-50000 8,21,922 0.02 19 2.46
50001-100000 31,03,331 0.09 44 5.70
100001 - Above 3,50,51,29,525 99.69 56 7.25
Grand Total 3,51,61,67,744 100 772 100
• Preference Shareholding:
No. of Shares Shareholding % of total No. of % of total
Preference Shareholders Preference
Shares shareholders
1-1000 7,13,286 6.43 936 48.17
1001-5000 20,52,414 18.49 762 39.22
5001-10000 9,44,300 8.51 106 5.46
10001-20000 9,21,700 8.30 56 2.88
20001-30000 6,27,000 5.65 23 1.18
30001-40000 3,78,500 3.41 10 0.51
40001-50000 12,87,800 11.60 26 1.34
50001-100000 9,61,100 8.66 13 0.67
100001 - Above 32,13,100 28.95 11 0.57
Grand Total 1,10,99,200 100 1,943 100
63
• Category of Equity and Preference Shareholding:

Equity Shares (Face Value: ` 10):
Category No. of Equity % of holding

Shares held
Promoter 3,32,45,83,520 94.55
Bodies Corporate 11,67,21,517 3.32
Trust 5,27,97,998 1.50
Individuals 2,20,64,709 0.63
Total (A) 3,51,61,67,744 100.00
Preference Shares (Face Value: ` 1000):
Category No. of Preference % of holding

Shares held
Bodies Corporate 54,79,420 49.37
Individuals 51,27,525 46.2
Trust 1,52,500 1.37
Others 3,39,755 3.06
Total (B) 1,10,99,200 100
Grand Total of Shares (A + B) 3,52,72,66,944
xii. Dematerialization of shares and liquidity:

All the Equity shares and Preference Shares of the Company are in dematerialized form as
on March 31, 2022. Under the Depository System, the International Securities Identification
Number (ISIN) allotted to the Company’s equity shares is INE976I01016.
xiii. Outstanding global depository receipts or american depository receipts or warrants or

any convertible instruments, conversion date and likely impact on equity: Not Applicable*
xiv. Commodity price risk or foreign exchange risk and hedging activities: Not Applicable*
xv. Plant locations: - Not Applicable *
xvi. Address for correspondence:
11th Floor, Tower A, Peninsula Business Park
Ganpatrao Kadam Marg, Lower Parel,
Mumbai 400013
xvii. List of all credit ratings obtained by the entity along with any revisions thereto during
the relevant financial year, for all debt instruments of such entity or any fixed deposit
programme or any scheme or proposal:
Details pertaining to Credit Ratings obtained by the Company are included in the Directors’
Report.
xviii. Transfer of Unclaimed / Unpaid Amounts to the Investor Education and Protection Fund:
During the year under review, no amount was due for transfer to Investor Education and
Protection Fund.
*The equity shares of the Company are not listed on the stock exchanges and hence certain
details are not applicable to the Company.
64
VIII. Other Disclosure
Particulars Details
Disclosures on materially significant There were no material related party transactions during
related party transactions that may the year that have a conflict with the interest of the
have potential conflict with the interests Company.
of listed entity at large;
Details of non - compliance by the NIL
Company, penalty, strictures imposed
on the Company by the stock
exchange, or Securities and Exchange
Board of India (‘SEBI’) or any statutory
authority on any matter related to
capital markets, during the last three
years;
Details of establishment of vigil The Company has a Whistle Blower Policy and has
mechanism / whistle blower policy, and established necessary Vigil Mechanism for Directors
affirmation that no personnel has been and employees to report concerns about unethical
denied access to the audit committee; behaviour. No person has been denied access to the
Audit Committee.
Details of compliance with mandatory Details of compliance with non-mandatory and
requirements and adoption of the non- mandatory requirements are mentioned in point no. XI
mandatory requirements; and XII of this report respectively.
Web link where policy for determining The Company has a policy for determining ‘material
‘material’ subsidiaries is disclosed; subsidiaries’ which is disclosed on its website at
https://www.tatacapital.com/content/dam/tata-capital/pdf/tcl/TCL__Policyfordeterminingmaterialsubsidiaries.pdf
Web link where policy on dealing with The Company has a policy on dealing with related
related party transactions party transactions which is disclosed on its website at
https://www.tatacapital.com/content/dam/tata-capital/pdf/tcl/TCL_RPTPolicy.pdf
Disclosure of commodity price risks Not Applicable

and commodity hedging activities
Details of utilization of funds raised Not Applicable
through preferential allotment or
qualified institutional placement as
specified under Regulation 32 (7A).
Certificate from a company secretary in The Company has obtained certificate from M/s. Parikh
practice that none of the directors on & Associates, Practising Company Secretaries that none
the board of the company have been of the Directors on the Board of the Company have
debarred or disqualified from being been debarred or disqualified from being appointed
appointed or continuing as directors or continuing as directors of companies by the Board/
of companies by the Board/Ministry of Ministry of Corporate Affairs or any such statutory
Corporate Affairs or any such statutory authority. The same is reproduced at the end of this
authority report and marked as Annexure I.
Where the board had not accepted During FY 2021-22, all the recommendations of the
any recommendation of any committee various Committees of the Board were accepted by the
of the board which is mandatorily Board.
required, in the relevant financial year,
the same to be disclosed along with
reasons thereof:
65
Particulars Details
Total fees for all services paid by the M/s B S R & Co. LLP, Chartered Accountants (“BSR”)
listed entity and its subsidiaries, on a (ICAI Firm Registration Number: 101248W/W-100022)
consolidated basis, to the statutory resigned as the Statutory Auditors with effect from
auditor and all entities in the network November 12, 2021 due to the ineligibility to continue
firm/network entity of which the as statutory auditors in terms of RBI circular dated
statutory auditor is a part. April 27, 2021.
In view of the above, M/s Khimji Kunverji & Co. LLP,
Chartered Accountants (Firm Registration No. 105146W/
W100621) was appointed as the Statutory Auditors of the
Company With effect from November 12, 2021
The particulars of payment of fees to Statutory Auditors’ is
given below:
Particulars Amount
(` In lakh)
(i) Audit fees 417
(ii) Tax audit fees 22
(iii) Other Services 43
(includes out of pocket expenses)
Total 482
Further, no fees were paid to any entity in the network

firm/network entity of which the Statutory Auditor is a
part.
Disclosures in relation to the Sexual Number of Number of Number of
Harassment of Women at Workplace complaints complaints complaints
(Prevention, Prohibition and Redressal) filed during the disposed of pending as
Act, 2013 financial year. during the on end of the
financial year. financial year.
Nil NA NA
Disclosure by listed entity and its Nil

subsidiaries of ‘Loans and advances in
the nature of loans to firms/companies
in which directors are interested by
name and amount’:
Familiarization Program:
Details of familiarisation programmes imparted to Independent Directors is disclosed on its
website at
www.tatacapital.com/content/dam/tata-capital/pdf/investors-and-financial-reports/corporate-governance/Familiarisation%20Programme.pdf
Summary Minutes A summary of the minutes of the meetings of the Board

of the subsidiary companies is placed before the Board
for noting on a quarterly basis.
IX. Unclaimed Amount

As on March 31, 2022, there is no unpaid amount with respect to the Interest / Dividend /
Redemption of NCDs / Preference Shares of the Company.
66
X. Non-compliance of any requirement of corporate governance report of sub-paras above, with
reasons thereof shall be disclosed.
Currently, the composition of the Board is in compliance with the requirements under the
Companies Act, 2013. In view of the provisions under the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirement) Regulations, 2015 (“SEBI Listing Regulations”)
relating to Board composition which have been made applicable to High Value Debt Listed entities,
the Company shall reconstitute its Board within the specified timelines.
XI. The corporate governance report shall also disclose the extent to which the discretionary
requirements as specified in Part E of Schedule II have been adopted.
The Company has adopted the following discretionary requirements as specified in Part E of
Schedule II
i. The Company has adopted regime of financial statement with unmodified audit opinion.
ii. The Company has appointed separate posts of Chairman and the Managing Director & CEO
such that Chairman is a Non-Executive Director and not related to Managing Director & CEO.
iii. The Internal Auditor of the Company directly reports to Audit Committee of the Company.
XII. The disclosures of the compliance with corporate governance requirements specified in regulation
17 to 27 and clauses (a) to (i) of Regulation 62 (1A) of SEBI Listing Regulations shall be made in
the section on corporate governance of the annual report.
The Company is in compliance with all the mandatory requirements specified in Regulation
17 to 27 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 which
have become applicable to the Company as a High Value Debt Listed Entity (“HVDLE”) w.e.f
September 7, 2021 on a ‘comply or explain’ basis until March 31, 2023 except Regulation 17(1)(b)
for which the Company has been providing the necessary explanation in the quarterly compliance
report on Corporate Governance submitted to the Stock Exchange.
XIII. Declaration signed by the chief executive officer stating that the members of board of
directors and senior management personnel have affirmed compliance with the code of
conduct of board of directors and senior management.
The Company has adopted a Code of Conduct for its employees including the Managing
Director & CEO. In addition, the Company has adopted a Code of Conduct for its Non-Executive
Directors and Independent Directors. These Codes are available on the Company’s website
(www.tatacapital.com).
All the Directors of the Board and Senior Management Personnel of the Company have affirmed
compliance with the respective Codes. A declaration signed by the Managing Director & CEO to this
effect is reproduced at the end of this report and marked as Annexure II.
XIV. Compliance certificate from either the auditors or practicing company secretaries regarding
compliance of conditions of corporate governance shall be annexed with the directors’
report.
The Company has obtained compliance certificate from the Practising Company Secretaries on
corporate governance. The same is reproduced at the end of this report and marked as Annexure III.
XV. Disclosures with respect to demat suspense account / unclaimed suspense account: Not
Applicable
67
Annexure I
CERTIFICATE
(pursuant to Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015)
To,
The Members
11th Floor, Tower A,
Peninsula Business Park,
Ganpatrao Kadam Marg,
Lower Parel, Mumbai – 400013
We have examined the relevant registers, records, forms, returns and disclosures received from the
Directors of Tata Capital Limited having CIN U65990MH1991PLC060670 and having registered office at
11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013
(hereinafter referred to as ‘the Company’), produced before me/us by the Company for the purpose
of issuing this Certificate, in accordance with Schedule V Para-C Sub clause 10(i) of the Securities
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors
Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and
explanations furnished to us by the Company & its officers and considering the relaxations granted by the
Ministry of Corporate Affairs and Securities and Exchange Board of India warranted due to the spread of
the COVID-19 pandemic, We hereby certify that none of the Directors on the Board of the Company as
stated below for the Financial Year ending on 31st March, 2022 have been debarred or disqualified from
being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. Name of Director DIN Date of Appointment in

No. Company*
1. Mr. Farokh Nariman Subedar 00028428 11/03/1997
2. Mr. Rajiv Sabharwal 00057333 01/04/2018
3. Mr. Saurabh Agrawal 02144558 28/07/2017
4. Ms. Varsha Purandare 05288076 01/04/2019
5. Ms. Aarthi Subramanian 07121802 30/10/2017
6. Ms. Malvika Sinha 08373142 01/04/2021
*the date of appointment is as per the MCA Portal.
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility
of the management of the Company. Our responsibility is to express an opinion on these based on our
verification. This certificate is neither an assurance as to the future viability of the Company nor of the
efficiency or effectiveness with which the management has conducted the affairs of the Company.
Practising Company Secretaries
Jigyasa N. Ved
Partner
FCS: 6488 CP: 6018
UDIN: F006488D000319526
PR No.: 1129/2021
Mumbai, 13.05.2022
68
Annexure II
DECLARATION BY THE MANAGING DIRECTOR & CEO

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I
hereby confirm that, all the Directors and Senior Management Personnel of the Company have affirmed
compliance to the Code of Conduct for the financial year ended March 31, 2022.
For Tata Capital Limited,

Rajiv Sabharwal
Managing Director & CEO
Mumbai
May 13, 2022
Annexure III
PRACTISING COMPANY SECRETARIES’ CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of
We have examined the compliance of the conditions of Corporate Governance by Tata Capital Limited
(‘the Company’) for the year ended on March 31, 2022, as stipulated under Regulations 17 to 27,
clauses (a) to (i) of sub-regulation (1A) of Regulation 62 and para C, D & E of Schedule V of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (“SEBI Listing Regulations”) and as made applicable to the Company effective September 7, 2021
on a comply or explain basis until March 31, 2023, and the necessary explanation in the quarterly
compliance report on Corporate Governance submitted to the Stock Exchange under Regulation 27(2)(a)
of SEBI Listing Regulations.
The compliance of the conditions of Corporate Governance is the responsibility of the management.
Our examination was limited to the review of procedures and implementation thereof, as adopted by the
Company for ensuring compliance with 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, and
the representations made by the Management and considering the relaxations granted by the Ministry
of Corporate Affairs and Securities and Exchange Board of India warranted due to the spread of the
COVID-19 pandemic, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in the SEBI Listing Regulations for the year ended on March 31, 2022 and
had provided necessary explanation pertaining to compliance of Regulation 17(1)(b) in the quarterly
compliance report on Corporate Governance submitted to the Stock Exchange under Regulation 27(2)(a)
of SEBI Listing Regulations.
We further state that such compliance is neither an assurance as to the future viability of the Company nor
of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Practising Company Secretaries
Jigyasa N. Ved
Partner
FCS: 6488 CP: 6018
UDIN: F006488D000319493
PR No.: 1129/2021
Mumbai, 13.05.2022
69
MANAGEMENT DISCUSSION AND ANALYSIS
1. ABOUT TATA CAPITAL

Tata Capital Limited (“TCL” or “Company”), registered with the Reserve Bank of India (“RBI”) as a
Systemically Important Non-Deposit Accepting Core Investment Company (“CIC”), primarily holds
investments in its subsidiaries, mainly engaged in lending and offering a wide array of services/
products in the financial services sector. TCL is a subsidiary of Tata Sons Private Limited. TCL and
its subsidiaries are hereinafter collectively referred to as “Tata Capital”. TCL has sponsored Private
Equity Funds in India, to which, it acts as an Investment Manager.
TCL has the following 3 subsidiaries engaged in the lending business:
i) Tata Capital Financial Services Limited (“TCFSL”), a wholly-owned subsidiary of TCL,
is registered with the RBI as a Systemically Important Non-Deposit Accepting Non-Banking
Financial Company (“NBFC-ND-SI”). TCFSL is a one stop financial service provider that caters
to the diverse needs of the Retail, SME and Corporate Customers.
ii) Tata Capital Housing Finance Limited (“TCHFL”), a wholly-owned subsidiary of TCL, is
registered as a Housing Finance Company with the National Housing Bank offering home
loans, loan against property and builder loans.
iii) Tata Cleantech Capital Limited (“TCCL”) is registered with the RBI as an Infrastructure
Finance Company. TCCL is a joint venture between TCL and International Finance
Corporation, Washington D.C., USA, with equity holding in the ratio of 80.50:19.50
respectively. TCCL offers finance and advisory services to entities in the clean technology and
infrastructure space.
Apart from lending business, TCL has:
Private Equity Funds: The Company has set up multiple Private Equity Funds in India, viz.
Tata Capital Growth Fund I, Tata Capital Growth Fund II, Tata Capital Healthcare Fund I,
Tata Capital Healthcare Fund II, Tata Opportunities Fund, Tata Capital Innovations Fund and Tata
Capital Special Situations Fund - Trust (collectively referred to as “Funds”). These Funds have been
registered with SEBI as Venture Capital Funds/Alternative Investment Funds. The Company has
sponsored these Funds and acts as their Investment Manager.
Presence in Singapore: Tata Capital Pte. Ltd. (“TCPL”), a wholly-owned subsidiary of TCL, has
been established in Singapore and is responsible for Tata Capital’s international presence and
activities. TCPL’s wholly-owned subsidiary in Singapore, Tata Capital Advisors Pte. Ltd. (“TCAPL”),
acts as an Investment Manager to the Private Equity Funds set up in Singapore, to which, TCL acts
as an Advisor.
Tata Securities Limited (“Tata Securities”) is a wholly-owned subsidiary of the Company.
Tata Securities has been empaneled with several Asset Management Companies operating in India.
Tata Securities is currently engaged in the business of distribution of Mutual Fund units.
2. INDUSTRY AND ECONOMIC SCENARIO

India’s real GDP growth for FY22 was 8.7%, which is amongst the highest in leading economies,
as the Indian economy bounced back during the year exhibiting resilience during the pandemic.
As the year progressed, most of the economic indicators such as GST collection, IIP, Exports and
UPI transactions saw an uptick, indicating a steady recovery from the lows of the first quarter of
FY22. This was also reflected in the credit growth for both Banks and NBFCs where the larger,
well-funded ones witnessed a swifter recovery on the back of ebbing third wave of COVID-19 and
easing of restrictions.
While India's growth outlook for the year ahead remains bright, driven by private consumption and
elevated public spending, but risks remain, the biggest of which is inflation. Higher inflation can
curtail the discretionary consumption and unfavourably affect the recovering domestic demand. The
ongoing geopolitical crisis has caused supply chain disruptions which has led to higher commodity
70
prices; if this gets prolonged, it can further fuel the inflation. The depreciating Rupee can become
another issue as India is one of the biggest importers of crude oil leading to likely rise in trade
deficit in FY23. As Rupee depreciates and import prices go up, taming inflation can become an
uphill task for the central bank. A slower than expected global growth recovery may affect the
demand for exports.
India’s retail inflation soared to an 18-month high of 7.5% in April 2022 driven by inflationary
pressures, post which the RBI announced a 40 bps repo rate hike in May 2022 in an off-cycle
monetary policy to combat the said rise in inflation. While RBI’s stance remains accommodative
in order to support growth, ensuring that inflation remains within the target going forward shall be
key for a sustainable growth environment. However, a downside to this is any further increase in
the rates may force Banks and NBFCs to further increase their lending rates, and thus affecting
consumption and capital expenditure.
Nevertheless, the opportunities for growth remain intact driven by strong economic fundamentals,
favourable economic policies (such as PLI scheme, Aatmanirbhar Bharat Abhiyan and Startup
India initiative), digital push, demographic dividend and growing global preference for India as an
investment destination. Further, as we enter into FY23, the thrust on capital expenditure in Union
Budget 2022 is a welcome move and expected to push demand through multiplier effect on the
economy. Given the proactive efforts by the regulator and the push from the government to support
growth, we expect the inflationary environment to soften and a large vaccinated population is likely
to contain the impact of subsequent COVID-19 waves, which will give way to robust growth going
forward. This in turn shall spur credit demand across retail, SME and corporate segments, and
reflect in the performance of the financial services sector as a whole.
3. FINANCIAL PERFORMANCE ON A CONSOLIDATED BASIS

Tata Capital reported the highest ever profits during FY22 aided by expanding Net Interest Margins,
prudent product mix, efficient liability management, focused management of operating costs and
tightened credit policies/underwriting norms for containing credit costs.
Consolidated performance highlights of FY 2021-22 are as under:
n Recorded highest ever disbursals of ` 52,784 crores during the year, up by 109% Y-o-Y
n The total loan book stood at ` 94,349 crores as at March 31, 2022, up by 22% Y-o-Y
n A well-diversified portfolio comprising of retail portfolio (63%), SME (14%) and corporate
(23%).
n Net interest income including other revenues of ` 5,261 crores, up by 16% Y-o-Y
n Total credit cost stood at 1.3% for the year, down by 40 bps Y-o-Y
n TCL has adopted the RBI circular dated 12th Nov, 2021 pertaining to reclassification of NPA
accounts on a prudent basis. The Company has not opted for deferment as allowed by RBI till
Sep’2022.
n The consolidated Net Non-Performing Assets stood at 0.6% as at March 31, 2022 (0.9% as at
March 31, 2021) with a healthy provision coverage ratio of 71%.
n Net profit after tax increased Y-o-Y by 46% to ` 1,648 crores.
n The Return on Equity increased from 12.2% in FY 2020-21 to 15.6% in FY 2021-22.
n All the lending subsidiaries are well capitalized and the capital adequacy ratio is well above
the minimum stipulated RBI norms.
n Credit rating was reaffirmed to AAA by the leading credit rating agencies.
4. RISK MANAGEMENT
Tata Capital Limited and its subsidiaries aims to operate within an effective risk management
framework to actively manage all the material risks faced by the organization and make it
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resilient to shocks in a rapidly changing environment. It aims to establish consistent approach in

management of risks and strive to reach the efficient frontier of risk and return for the organization
and its shareholders.
Broad categories of risk faced by the company are Credit Risk, Market Risk, Operational Risk,
Cyber Security and Reputation risk. The risk management policies are well defined for various risk
categories supplemented by periodic monitoring through the sub committees of the Board.
Credit Risk: The credit aspects in the company are primarily covered by the Credit policy and
Delegation of Authority approved by the Board of Directors. The company measures, monitors and
manages credit risks at individual borrower and portfolio level. Last year, we have tightened our
underwriting criteria across product lines, re-calibrated digital scorecards and leveraged our risk
analytics to enhance our credit decisioning and monitoring of existing portfolio.
Market Risk: Market risk management is guided by clearly laid down policies, guidelines,
processes and systems for the identification, measurement, monitoring and reporting of exposures
against various risk limits. The Asset Liability Management (ALM) Policy stipulates a broad
framework for liquidity risk management to ensure that the company is in a position to meet
its liquidity obligations. The ALM policy is supplemented by LCR framework, stress testing and
contingency funding plan.
Operational Risk: The company has put in place a comprehensive system of internal controls,
systems and procedures for documenting, assessing, and periodic monitoring of various risks and
controls linked to various processes across all business lines. The governance and framework for
managing operational risks is defined in the Operational Risk Management Policy. Operational Risk
Management Department engages with the First Line of Defence (Business and Operating Units) on
periodic basis to identify and mitigate operational risks to minimize the risk and its impact.
Fraud Risk: TCL has adopted a robust Fraud Risk Management framework. It has an effective &
very strong fraud risk governance mechanism that encompasses controls covering below objectives:
1. Prevent (reduce the risk of fraud from occurring)
2. Detect (discover fraud when it occurs) and
3. Respond (take corrective action and remedy from the harm caused by fraud).
Changing business landscape and digitization has heightened the level of fraud risk in the
environment arising due to new methods, schemes and technology. We continue to increase our
investment in fraud prevention and detection capabilities to protect our stakeholders.
Compliance Risk: Tata Capital has a robust compliance risk management framework in place
guided by a Board approved Compliance Risk Management Charter which lays down the roles and
responsibilities of employees towards ensuring compliance with the applicable laws and regulations
as also the role of the Compliance Department in monitoring compliance. The management of
compliance risk is an integral component of the governance framework along with other internal
control and risk management frameworks.
Cyber Security Risk: The Information Security Policy has been designed to provide an overview
of the information security requirements and describe the controls that may be used to meet
those requirements. Information Security Policy defines the overall framework for information
security risk management. It documents the expected behaviour of system, data and information
users. It contains appropriate approach to combat cyber threats given the level of complexity of
business and acceptable levels of risk and cyber crisis management plan addressing the aspects:
(i) Detection (ii) Response (iii) Recovery and (iv) Containment.
Reputation Risk: Reputational risk has been defined as the risk arising from negative perception
on the part of customers, shareholders, investors, debt-holders, media reports that can adversely
affect an organization’s ability to maintain existing or establish new business relationships and
continued access to sources of funding.
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Our governance culture supported by sound risk management is aimed at ensuring we remain
resilient during challenging periods and forge a sustainable future for the organization.
The Risk Management Practices of the Company and its subsidiaries are compliant with ISO
31000:2018, which is the International Standard for Risk Management that lays down Principles,
Guidelines and Framework for Risk Management in the Organization.
5. EVOLVING REGULATORY LANDSCAPE

Over the past few years, financial services as a sector has come under increased scrutiny and
therefore, greater regulatory supervision. This is especially true for NBFCs, as over the years, the
sector has undergone considerable evolution in terms of size, complexity and interconnectedness
within the financial sector. With a view to bridge the regulatory gaps between the Banks and
NBFCs, NBFCs are now increasingly being subject to regulations and guidelines at par with banks.
Some of the key regulations and guidelines aimed at bringing this regulatory convergence between
the Banks and NBFCs are:
l Scale Based regulations where NBFCs would be classified into layers on the basis of their
size, activity and perceived risk. Effective October 2022, the said regulations would put in
place enhanced regulatory standards pertaining to Capital, Prudential and Governance
requirements. NBFCs which warrant enhanced regulatory requirements based on a set of
parameters and scoring methodology will feature in the upper layer, while the middle layer will
comprise of deposit-taking NBFCs irrespective of asset size, non-deposit-taking NBFCs with
assets worth Rs 1,000 crore or more, as well as Housing Finance Companies.
l Prompt Corrective Action (PCA) framework prescribed for NBFCs as a tool for effective market
discipline, to enable Supervisory intervention at appropriate time which require NBFCs to
initiate and implement remedial measures in a timely manner, so as to restore its financial
health. With the NBFC sector witnessing a high growth trajectory over the past decade and
substantial inter-connectedness within the financial ecosystem, this framework is expected to
further strengthen the supervisory tools available to the regulator to manage NBFCs.
l RBI circular dated 12th November 2021 pertaining to asset classification of NBFCs, whereby
certain aspects such as classification of an account as Special Mention Account (SMA) and
Non-Performing Asset (NPA) were clarified / harmonized. This has again been brought to
ensure uniformity in the implementation of IRACP norms across all lending institutions.
l RBI has tightened the norms around appointment of Auditors with issue of ‘Guidelines
on appointment of Statutory Auditors’ with a view to strengthen governance relating to
appointment of auditors and to improve the overall quality and standards of financial reporting
of RBI regulated entities. It sets out the criteria for audit firms regarding the number of audits
they can take at a time and how they should conduct it, while requiring joint audits for entities
with asset size of more than ` 15,000 crores.
l Extending Risk-Based Internal Audit framework to NBFCs to enhance the quality and
effectiveness of their internal audit systems and processes. It requires internal audit function
to broadly assess and contribute to the overall improvement of the Organization’s governance,
Risk Management and control processes using a systematic and disciplined approach.
l Amendment in Listing Obligations and Disclosure Requirements by SEBI enhancing Disclosure
norms and Compliance requirements for debt listed entities. Multiple provisions which were
hitherto applicable only to equity listed entities were made applicable to High Value Debt
Listed Entities (HVDLs). HVDLs are entities with listed NCDs having outstanding value of
` 500 crores and above. Further, certain provisions which were already applicable to debt
listed entities have also been amended resulting in additional compliances. The amendments
encompassed areas such as board composition incl. independent directors, related party
transactions, corporate governance requirements, disclosure of information, financial results
and submissions to stock exchanges among others.
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l Introduction of guidelines on declaration of dividends by NBFCs with the intent to infuse

greater transparency and uniformity in practice. It requires NBFCs to comply with the minimum
prudential requirements including capital adequacy and net NPA levels to be eligible to declare
dividend within the prescribed Dividend Payout ratio.
While the parity in regulations is expected to improve the overall health and shore up the
governance standards for the NBFCs in the medium to long term, the sector may face some
headwinds in the immediate to short term. However, the impact may not be significant for larger,
well capitalized NBFCs such as Tata Capital which are well placed to navigate the evolving
regulatory landscape.
6. OPPORTUNITIES AND THREATS

Non-Banking Financial Companies (“NBFCs”) remain one of the most important pillars for ushering
financial inclusion in India, reaching out to a hitherto under/unserved populace and in the process
leading to “formalization” of the credit demand. NBFCs cater to the needs of both the retail as well
as commercial sectors and, at times, have been able to develop strong niches with their specialized
credit delivery models that even larger players including banks, have found hard to match. This has
further provided a fillip to employment generation and wealth creation and in the process, bringing
in the benefits of economic progress to the weaker sections of the society.
Last two years were challenging on account of the pandemic during which both business
and collections were severely impacted. However, from Q2 FY22, credit growth has picked up
significantly due to receding impact of COVID shutdowns, the pent-up demand in the economy
and an uptick in multiple economic indicators. This was evidenced as per RBI’s ‘Data on sectoral
deployment of bank credit’ wherein non-food bank credit registered a y-o-y growth of 9.7% in
March 2022.
While the economy is on the path to recovery, there are certain headwinds that may impact the
growth and credit offtake. The NBFC sector may get impacted if elevated levels of retail inflation,
crude oil prices and supply chain disruptions continue over a prolonged period. Borrowing rate
is expected to rise in the wake of rate hikes announced by RBI in May 2022, which may lead to
pressure on margins. Any loan re-pricing may lead to reduced demand as well as deterioration in
credit quality for small borrowers.
However, there’s room for optimism – receding pandemic impact along with large vaccinated
population, rising private investments, higher consumption levels and thrust on capital expenditure
in Union Budget 2022 shall in tandem lead to a higher growth trajectory for the economy. This shall
also translate into a better performance vis-à-vis the year gone by for most of the leading financial
services institutions including NBFCs.
With its strong parentage, brand recognition, liquidity and strong distribution network, Tata Capital
is poised to capitalize on this opportunity and we foresee an increase in market share across all
segments with the introducing new products and tapping deeper markets. Further, we have a robust
risk management framework with a deep understanding of underwriting and credit controls which
shall help us mitigate the risk of deterioration in asset quality.
7. INTERNAL CONTROL SYSTEMS

TCL’s internal control system is designed to ensure operational efficiency, protection and
conservation of resources, accuracy and promptness in financial reporting and compliance with laws
and regulations. The internal control system is supported by an internal audit process for reviewing
the design, adequacy and efficacy of the Company’s internal controls, including its systems and
processes and compliance with regulations and procedures. Internal Audit Reports are discussed
with the Management and are reviewed by the Audit Committee of the Board, which also reviews
the adequacy and effectiveness of the internal controls in the Company. TCL’s internal control
system is commensurate with its size and the nature of its operations.
74
8. INTERNAL FINANCIAL CONTROLS
The Management has laid down set of standards, processes and structure which enables to
implement internal financial controls across the organization with reference to financial statements
and that such controls are adequate and are operating effectively. Internal Finance control
framework has been established in line with the Internal Control - Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”)
and Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (the ‘Guidance Note’).
During FY 2021-22, testing was conducted basis process walkthrough and review of samples as
per documented controls in the Risk & Control matrix. Testing is done for each of the controls with
the help of an independent firm, on behalf of Management confirming the existence and operating
effectiveness of controls over financial reporting. Review was performed on design, adequacy
and operating effectiveness of the controls. During the year under review, no material or serious
observation has been observed for inefficiency or inadequacy of such controls.
9. HUMAN RESOURCES
Tata Capital had 5,454 permanent employees as of March 31, 2022.
Tata Capital firmly believes that Human Capital is its most important asset. During the past two
years of the COVID-19 pandemic, the health, safety & wellbeing of our employees & their families
remained our top priority. A series of engagement interventions across identified key themes were
undertaken to assist employees deal with the sudden and unprecedented changes brought about
during this period.
The Company has embarked on its journey of “Happiness at the workplace” which has enabled to
look at employee engagement in a more holistic way.
Continuing with its journey of “Happiness at the workplace”, Tata Capital conducted the Employee
Engagement & Happiness Survey - 2022. The company had an impressive participation rate of 91%
and the Engagement score was 80% which was higher than the comparative benchmarks identified.
This survey was an important step in the Company’s journey to create a more positive and an
even more joyful workplace by continuously seeking employee feedback. As a critical step post
the survey, action planning is being ensured and several initiatives are being deployed to further
strengthen engagement across Tata Capital.
During the period under review, Tata Capital has experienced unprecedented changes and this
meant that adapting to the new norm was critical. The Company continued to deploy robust learning
programs through Instructor Led Virtual Training (ILVT) sessions complimented by digital learning to
ensure continuous development of the employees. Learn, unlearn and relearn continues to be the
Company’s mantra.
The Advanced Learning Management System & the Learning App at Tata Capital continue to be
a central depository and source to promote anytime, anywhere learning. We have now added
and built the learning library with even more functional and behavioral modules that are byte
sized, relevant and applicable with dedicated digital learning campaigns to enhance the Learner
Engagement and a higher e-learning coverage. In addition, several leadership development
programs were conducted in collaboration with reputed partners.
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76
Consolidated
Financial
Statements
77
Independent Auditor’s Report
To
the Members of
Report on the audit of the Consolidated Financial Statements

Opinion
1. We have audited the accompanying Consolidated Ind AS financial statements of Tata Capital
Limited (“the Holding Company” or “the Parent”) and its subsidiaries (Holding Company and its
subsidiaries together referred to as “the Group”), and its associates, which comprise the
consolidated balance sheet as at 31 March 2022 and the consolidated statement of profit/ loss
(including other comprehensive income), the consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies and other explanatory
information (“the Consolidated Financial Statements”).
2. 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 of such
subsidiaries, as were audited by the other auditors and in case of entities referred to in paragraph
17 below, based on consideration of management certified statements, the aforesaid Consolidated
Financial Statements give the information required by the Companies Act, 2013 (“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 associates
as at 31 March 2022, and its consolidated profit and other comprehensive income, consolidated
changes in equity and its consolidated cash flows for the year then ended.
Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under
section 143(10) of the Act. Our responsibilities under those SAs 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 its associates in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the
ethical requirements that are relevant to our audit of the Consolidated 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 along with the consideration of audit reports of the other auditors
referred to in the “Other Matters” paragraph below is sufficient and appropriate to provide a basis for
our opinion on the Consolidated Financial Statements.
Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the Consolidated Financial Statements of the current year. 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.
78
Key Audit Matter How the matter was addressed in our audit
Impairment of investments in subsidiaries and associates
Charge: ` 852 Lakhs for year ended 31 March 2022
Provision: ` 7069 Lakhs at 31 March 2022
Refer to the accounting policies in “Note 2 (xiii) to the Consolidated Ind AS Financial Statements:
Impairment of Investments at Cost and Financial Instruments”, “Note 8 and 11 to the Consolidated Ind
AS Financial Statements: Investments” “Note 2 (vii) to the Consolidated Ind AS Financial Statements:
Significant Accounting Policies- use of estimates”, “Note 45 to the Consolidated Ind AS Financial
Statements: Risk Management Review”
Subjective estimate Our audit procedures included the following:
Recognition and measurement of investments in Design / controls
subsidiaries and associates involve significant
 Understanding of the process, evaluating
management judgement.
the design and testing the operating
The Holding Company has investment in effectiveness in respect of impairment / fair
subsidiaries totalling to ` 9,27,372 Lakhs and value assessment of investments done by
associate companies totalling to ` 29,248 management.
Lakhs before elimination for consolidation.
 Evaluating management’s controls over
Such investments are individually assessed for
collation of relevant information used for
impairment as per the requirements of Ind AS 36 –
determining estimates for impairment / fair
“Impairment of Assets.”
value of investments.
We have identified impairment testing of
investments in subsidiaries and associates as Substantive tests
a Key Audit Matter due to the high magnitude of  Testing appropriate implementation of policy
the carrying value. Considering that the Holding of impairment by management.
Company is a Core Investment Company (‘CIC’)
 Reconciling the financial information
which is primarily required to hold investments and
mentioned in impairment assessment to
loans in group companies as per Reserve Bank
underlying source details. Also, testing the
of India Master Directions for CICs, impairment
reasonableness of management’s estimates
testing of investments in such group companies
considered in such assessment.
continues to remain an area of focus for the
audit. The key areas where we identified greater  Obtaining and reading latest audited/
levels of management judgement and therefore management certified financial statements of
increased levels of audit focus in the Holding subsidiaries and associates and noting key
Company’s estimation of impairment are: financial attributes / potential indicators of
 As part of such impairment assessment, impairment.
management considers financial information,  Challenge appropriateness and validity
liquidity and solvency position of of management judgements, more so
investments in subsidiaries and associates. amidst challenging times of pandemic by
Management also considers other factors critically evaluating the risks that have been
such as assessment of the investee Holding addressed by management in the valuation
company’s operations, business performance approach.
and modifications, if any, in the auditors’
report of such subsidiaries and associates.  Obtaining independent valuation reports of
For some investee companies which are investments in associates and investments
classified as associates, the management held by the Funds and involving a valuation
sometimes involves an external valuer to specialist to test the appropriateness of the
assess impairment. fair value of these investments, wherever
necessary and applicable, for assessing
 The Holding Company has investments in impairment thereon.
Domestic Venture Capital Funds/ Alternative
Investment Funds (‘the Funds’), which  Assess the completeness, accuracy and
are classified as its subsidiaries, and the relevance of data inputs for the said purpose.
79

impairment assessment for such Funds is  Assessing the factual accuracy and
done by considering the net asset value of appropriateness of the disclosures made
the respective Fund. The net asset value in the Consolidated Ind AS Financial
is determined based on the value of the Statements.
underlying investments held by these Funds.
The management involves an external valuer
to assess impairment or the fair value of
the underlying investments. This process
involves consideration of various valuation
methodologies such as income or market
approach, includes data inputs, assumptions
and market related knowledge that requires
management judgement and expertise.
Hence, we determined that the impairment of
investments in subsidiaries and associates, has a
high degree of estimation, with a potential range of
reasonable outcomes significantly high.
Impairment of loans and advances to customers
Refer note 7 to the Consolidated Financial Statements
As at 31 March 2022, the Group has reported Key aspects of our controls testing for the Group
gross loan assets of ` 93,31,659 lakh against involved the following:
which an impairment loss of ` 2,98,289 lakh
l Evaluating the appropriateness of the
has been recorded. The Group has recognized
impairment principles used by management
impairment provision for loan assets based on
based on the requirements of Ind AS 109
the Expected Credit Loss (“ECL”) approach
and our business understanding.
laid down under ‘Ind AS 109 – Financial
Instruments’. The estimation of ECL on financial l For the Holding Company and its
instruments involves significant management subsidiaries, testing the ‘Governance
judgement and estimates and the use of Framework’ controls over validation,
different modelling techniques and assumptions implementation, and model monitoring in line
which could have a material impact on reported with the RBI guidance.
profits. Significant management judgement
and assumptions involved in measuring ECL is Substantive tests
required with respect to: Key aspects of our testing included the following:
 Completeness and accuracy of the data used l Inquiries with Management regarding the
to create assumption in the model ECL framework, Group policies on ECL and
management overlay and reasonableness
 determining the criteria for a significant of the Group’s considerations of the impact
increase in credit risk of the current economic environment due to
COVID-19 on the ECL determination.
 factoring in future economic indicators
l Performing testing of completeness,
 techniques used to determine probability of accuracy and relevance of data while arriving
default, loss given default and exposure at at the provisions at the consolidated level.
default.
l Inquiring with respective component auditors
These parameters are derived from the Group’s about the above matters and seeking the
internally developed statistical models and other explanations based on their audit procedures.
historical data.
Further, continuous regulatory overview and

changes in the light of economic environment
makes this a significant audit area.
80
On the basis of an estimate made by the
management, an overlay to the tune of ` 17,572 lakh
has been recognized by the Group as at 31 March
2022 on account of increase in default risk due to the
impact of COVID-19 on recoverability of loans of the
Company. The basis of estimates and assumptions
involved in arriving at the overlay are monitored by
the Group periodically and significantly depend
on future developments in the economy including
expected impairment losses.
Disclosure
The disclosures regarding the Group’s application of
Ind AS 109 are key to explaining the key judgements
and material inputs to ECL results. Further,
disclosures to be provided as per RBI circulars with
regards to non-performing assets and provisions is
also an area of focus. Considering the significance of
the above matter to the overall financial statements,
additional complexities involved on account
of ongoing impact of COVID-19 and extent of
management’s estimates and judgements involved, it
required significant auditor attention, hence the key
audit matter.
Information technology system for the financial reporting and Consolidation process
The Group is highly dependent upon its We have assessed the IT systems and controls
information technology (IT) systems for carrying over financial reporting, which includes carrying
out its operations and owing to the significant out the key audit procedures, but were not limited
volume of transactions that are processed, which to the following:
impacts key financial accounting and reporting.

l we obtained an understanding of the
The company has put in place the IT General
Group’s key IT systems, IT General Controls
Controls and application controls to ensure that
which covered access controls, program/
the information produced by the company is
system changes, program development and
reliable. Among other things, the Management
computer operations i.e. job processing,
also uses the information produced by the
data/ system backup and incident
entity’s IT systems for accounting, preparation
management and application controls
and the presentation of the financial statements.
relevant to our audit
Considering numerous entities across different
business lines to be covered by consolidation, our
l We also tested the Hyperion system and
audit strategy included focus on entity’s key IT recalculated the data output with the
systems relevant to our audit due to their potential trial balance of the entities covered by
pervasive impact on the financial statements, consolidation to ensure completeness and
hence a key audit matter accuracy.
Other Information
5. The Holding Company’s Board of Directors are responsible for the other information. The other
information comprises the information included in the Holding Company’s annual report but does
not include the Consolidated Financial Statements and our auditors’ report thereon. The Other
Information is expected to be made available to us after the date of this auditor’s report.
6. Our opinion on the Consolidated Financial Statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
7. In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the Consolidated Financial Statements or our knowledge obtained in the audit or otherwise
81
appears to be materially misstated. If, based on the work we have performed and based on the work
done / audit report of other auditors, 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.
Management’s and Board of Directors’ responsibility for the Consolidated Financial Statements
8. The Holding Company’s Management and Board of Directors are responsible for the preparation
and presentation of these Consolidated Financial Statements, that give a true and fair view of
the consolidated state of affairs, consolidated profit and other comprehensive income, consolidated
changes in equity and consolidated cash flows of the Group including its associates in accordance
with the accounting principles generally accepted in India, including the Indian Accounting
Standards (“Ind AS”) specified under section 133 of the Act. The respective Management and
Board of Directors of the companies included in the Group and of its associates are responsible
for maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Group and of its associates and for preventing and detecting frauds
and other irregularities; the 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
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.
9. In preparing the Consolidated Financial Statements, the respective Management and Board
of Directors of the companies included in the Group and of its associates are responsible for
assessing the ability of each company to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the
management either intends to liquidate the Group or to cease operations or has no realistic
alternative but to do so.
10. The respective Management and Board of Directors of the companies included in the Group and of
its associates are responsible for overseeing the financial reporting process of the Group and of its
associates.
Auditor’s responsibilities for the audit of the Consolidated Financial Statements

11. 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.
12. As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
12.1 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.
12.2 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 and
its subsidiary companies which are companies incorporated in India have adequate internal
financial controls with reference to the Consolidated Financial Statements and the operating
effectiveness of such controls.
12.3 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
82
12.4 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 associates 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 associates
to cease to continue as a going concern.
12.5 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.
12.6 Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group and its associates to express an opinion on
the Consolidated Financial Statements. We are responsible for the direction, supervision
and performance of the audit of financial statements of the Company. 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 conducted by them. We remain solely responsible for our audit opinion.
12.7 Materiality is the magnitude of misstatements in the consolidated financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the consolidated financial statements may be influenced.
12.8 We consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the consolidated financial statements.
13. We communicate with those charged with governance of the Holding Company and such other
entities included in the Consolidated 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.
14. 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.
15. From 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 of the current
year 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 Matters
16. We did not audit the financial statements of 10 subsidiaries whose financial statements reflect
Group’s share of total assets of ` 1,00,49,722 Lakhs as at 31 March 2022, Group’s share of total
revenues of ` 10,08,383 Lakhs, Group’s share of total net profit after tax of ` 1,71,541 Lakhs,
Group’s share of total comprehensive income of ` 1,74,561 Lakhs and net cash inflows amounting
to ` 17,497 Lakhs for the year ended on that date, as considered in the Consolidated Financial
Statements. These financial statements have been audited by other auditors whose reports
have been furnished to us by the management and 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 associates, and our report in terms of section 143(3) of the Act, in so far as it
relates to the aforesaid subsidiaries, is based solely on the reports of the other auditors.
17. We did not audit the financial statements of 2 subsidiaries whose financial statements/ financial
information reflect Group’s share of total assets of ` 70,073 Lakhs as at 31 March 2022, Group’s
83
share of total revenues of ` 16,542 Lakhs, Group’s share of total net profit after tax of ` 11,664
Lakhs, Group’s share of total comprehensive income of ` 12,380 Lakhs and net cash outflows
amounting to ` 9,300 Lakhs for the year ended on that date, as considered in the Consolidated
Financial Statements. The Consolidated Financial Statements also include the total share of net
profit after tax of ` 10,964 Lakhs and share of total comprehensive income of ` 12,302 Lakhs for
the year ended 31 March 2022, as considered in the Consolidated Financial Statements, in respect
of 17 associates, whose financial statements / financial information have not been audited by us.
This financial statements / financial information are unaudited and have been furnished to us by the
management and our opinion on the Consolidated Financial Statements, in so far as it relates to
the amounts and disclosures included in respect of these entities, and our report in terms of section
143(3) of the Act in so far as it relates to the aforesaid entities, is based solely on such unaudited
financial statements / financial information, as certified by the management of the Company. In our
opinion and according to the information and explanations given to us by the Management, these
financial statements /financial information are not material to the Group.
18. Attention is drawn to the fact that the audited consolidated financial Statements of the Company
for the year ended 31 March 2021 were audited by erstwhile auditors whose report dated 23 April
2021, expressed an unmodified opinion on those audited consolidated financial statements. Our
opinion is not modified in respect of this matter.
19. Our opinion 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 information as
certified by the management.
Report on Other Legal and Regulatory Requirements

20. As required by section 143(3) of the Act, based on our audit and on the consideration of audit
reports of the other auditors on separate financial statements of such subsidiaries, as were audited
by other auditors, as noted in the ‘Other Matters’ paragraph, we report, to the extent applicable, that:
20.1 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 of the aforesaid
Consolidated Financial Statements.
20.2 In our opinion, proper books of account as required by law relating to preparation of the
aforesaid Consolidated Financial Statements have been kept so far as it appears from our
examination of those books and the reports of the other auditors.
20.3 The consolidated balance sheet, the consolidated statement of profit and loss (including
other comprehensive income), the consolidated statement of changes in equity and the
consolidated statement of cash flow dealt with by this Report are in agreement with the
relevant books of account maintained for the purpose of preparation of the Consolidated
Financial Statements.
20.4 In our opinion, the aforesaid Consolidated Financial Statements comply with the Ind AS
specified under Section 133 of the Act.
20.5 On the basis of the written representations received from the directors of the Holding
Company as on 31 March 2022, taken on record by the Board of Directors of the Holding
Company and the reports of the statutory auditors of its subsidiary companies, incorporated in
India, none of the directors of the Group companies, incorporated in India are disqualified as
on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.
20.6 With respect to the adequacy of internal financial controls with reference to the Consolidated
Financial Statements of the Holding Company, its subsidiary companies, and its associate
companies incorporated in India and the operating effectiveness of such controls, refer to our
separate report in “Annexure A”.
20.7 In our opinion and according to the information and explanations given to us the remuneration
paid during the current year by the Holding Company, to its directors is in accordance with the
provisions of Section 197 of the Act read with Schedule V to the Act
21. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our
84
information and according to the explanations given to us and based on the consideration of audit
reports of the other auditors on separate financial statements of such subsidiaries, as noted in the
‘Other Matters’ paragraph:
21.1 The Consolidated Financial Statements disclose the impact of pending litigations as at
31 March 2022 on the consolidated financial position of the Group, Refer Note 35 to the
Consolidated Financial Statements.
21.2 Provision has been made in the Consolidated Financial Statements, as required under the
applicable law or Ind AS, for material foreseeable losses, if any, on long-term contracts
including derivative contracts – Refer Note 52 to the Consolidated Financial Statements in
respect of such items as it relates to the Group.
21.3 There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Holding Company and its subsidiary companies, associate companies
incorporated in India.
21.4 The respective Managements of the Company and its subsidiaries which are companies
incorporated in India, have represented to us that to the best of their knowledge and belief
that no funds (which are material either individually or in aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Holding Company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Holding
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries. Based on reasonable audit procedures adopted by us, nothing has
come to our notice that such representation contains any material misstatement.
21.5 The respective Managements of the Company and its subsidiaries which are companies
incorporated in India, have represented to us to the best of their knowledge and belief that
no funds (which are material either individually or in aggregate) have been received by
the Holding Company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding
Company shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries. Based on reasonable audit procedures adopted by us, nothing has come to our
notice that such representation contains any material misstatement.
21.6 In our opinion and according to the information and explanations given to us, the dividend
declared during the year the by the Holding Company Group is in compliance with provisions
of Section 123 of the Act.
22. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s
Report) Order, 2020 (the “CARO”) issued by the Central Government in terms of Section 143(11) of
the Act, to be included in the Auditor’s report, according to the information and explanations given to
us, and based on the CARO reports issued by us for the Company and based on our consideration
of CARO reports issued by the respective auditors of the Company’s incorporated in India, such
subsidiaries as referred to in paragraph 16 above, we report that there are no qualifications or
adverse remarks in these CARO reports.
For Khimji Kunverji & Co LLP

Chartered Accountants
Firm Registration Number: 105146W/W100621
Hasmukh B Dedhia
Partner
Mumbai ICAI Membership No: 033494
26 April 2022 UDIN: 22033494AHUQOP6699
85
Annexure A to the Independent Auditors’ report on the

Consolidated Financial Statements of Tata Capital Limited for
the year ended 31 March 2022
(Referred to in paragraph 20.6 under ‘Report on Other Legal and Regulatory Requirements’ section of
our report of even date)
Report on the Internal Financial Controls with reference to the aforesaid Consolidated Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the
Act”)
Opinion
1. In conjunction with our audit of the Consolidated Financial Statements of Tata Capital Limited as
of and for the year ended 31 March 2022, we have audited the internal financial controls with
reference to the Consolidated Financial Statements of Tata Capital Limited (“the Holding
Company”), its subsidiaries and its associate companies, which are companies incorporated in
India, as of that date.
2. In our opinion, the Holding Company, and its subsidiary companies and its associate companies,
which are companies incorporated in India, have, in all material respects, an adequate internal
financial controls with reference to the Consolidated Financial Statements and such internal
financial controls were operating effectively as at 31 March 2022, based on the internal controls
over financial reporting criteria established by the respective companies considering the essential
components of such internal controls stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“the
Guidance Note”).
Management’s responsibility for Internal Financial Controls

3. The respective management and the Board of Directors of the Holding Company, its subsidiary
companies, and its associate companies, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial controls with reference to consolidated
financial statements based on the internal controls over financial reporting criteria established
by the respective companies considering the essential components of internal control stated in
the Guidance Note. 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 Act.
Auditor’s responsibility
4. Our responsibility is to express an opinion on the Holding Company, its subsidiaries, and its
associates, which are companies incorporated in India, internal financial controls with reference to
the Consolidated Financial Statements based on our audit. We conducted our audit in accordance
with the Guidance Note and the Standards on Auditing (“SA”), prescribed under section 143(10)
of the Act, to the extent applicable to an audit of internal financial controls with reference to the
Consolidated Financial Statements. Those SAs 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 the Consolidated Financial Statements were
established and maintained and if such controls operated effectively in all material respects.
5. Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls with reference to the Consolidated Financial Statements and their
operating effectiveness. Our audit of internal financial controls with reference to the Consolidated
Financial Statements included obtaining an understanding of internal financial controls with
reference to the Consolidated Financial Statements, assessing the risk that a material weakness
86
exists, and testing and evaluating the design and operating effectiveness of the internal controls
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 Consolidated Financial Statements,
whether due to fraud or error.
6. 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 the Consolidated Financial Statements.
Meaning of Internal Financial controls with reference to the Consolidated Financial Statements
7. A company’s internal financial controls with reference to the 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 controls with reference to the 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.
Inherent Limitations of Internal Financial Controls with reference to the consolidated Financial
Statements
8. Because of the inherent limitations of internal financial controls with reference to the 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 the Consolidated
Financial Statements to future periods are subject to the risk that the internal financial controls with
reference to the Consolidated Financial Statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Other Matters
9. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness
of the internal financial controls system with reference to the Consolidated Financial Statements
in so far as it relates to the subsidiary companies and associate companies, which are companies
incorporated in India, is based on the corresponding reports of the auditors of such subsidiaries,
associates incorporated in India.

Hasmukh B Dedhia
Partner
26 April 2022 UDIN: 22033494AHUQOP6699
87
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022

(` in lakh)
Note As at As at
Particulars
No. March 31, 2022 March 31, 2021
ASSETS
(1) Financial assets
(a) Cash and cash equivalents 3 2,08,162 2,02,691
(b) Bank balances other than (a) above 4 5,420 2,372
(c) Derivative financial instruments 5 3,521 1,154
(d) Receivables
(i) Trade receivables 6 (i) 3,233 2,663
(ii) Other receivables 6 (ii) 22 7
(e) Loans 7 90,12,136 73,62,635
(f) Investments 8 6,78,008 3,82,328
(g) Other financial assets 9 25,059 57,470
99,35,561 80,11,320
(2) Non-financial assets
(a) Current tax assets (net) 10 (i) 16,585 14,150
(b) Deferred tax assets (net) 10 (ii) 84,099 73,930
(c) Investments accounted using equity method 11 1,06,608 82,969
(d) Investment property 12 2,016 2,127
(e) Property, plant and equipment 12 56,280 76,575
(f) Capital work-in-progress 12 (i) 377 -
(g) Intangible assets under development 12 (ii) 772 755
(h) Other intangible assets 12 2,514 2,710
(i) Right to use assets 37 11,133 8,732
(j) Other non-financial assets 13 22,683 19,758
3,03,067 2,81,706
Total Assets 1,02,38,628 82,93,026
88
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022 (Contd.)
(` in lakh)
Note As at As at
Particulars
No. March 31, 2022 March 31, 2021
LIABILITIES AND EQUITY
LIABILITIES
(1) Financial liabilities
(a) Derivative financial instruments 5 34,305 21,555
(b) Payables 14
(i) Trade payables
– Total outstanding dues of micro enterprises and 203 111
small enterprises
– Total outstanding dues of creditors other than 1,02,394 80,863
micro enterprises and small enterprises
(ii) Other payables
– Total outstanding dues of micro enterprises and - -
small enterprises
– Total outstanding dues of creditors other than - -
micro enterprises and small enterprises
(c) Debt securities 15 40,69,140 31,93,375
(d) Borrowings (Other than debt securities) 16 38,63,992 31,22,451
(e) Subordinated liabilities 17 6,88,845 5,90,482
(f) Lease liabilities 37 12,345 10,243
(g) Other financial liabilities 18 1,27,750 1,44,972
88,98,974 71,64,052
(2) Non-Financial Liabilities
(a) Current tax liabilities (net) 10 (iii) 34,959 28,695
(b) Provisions 19 7,302 5,849
(c) Other non-financial liabilities 20 13,794 13,751
56,055 48,295
(3) EQUITY
(a) Equity share capital 21 3,46,335 3,46,360
(b) Other equity 22 8,24,971 6,50,940
Equity attributable to owners of the Company 11,71,306 9,97,300
(4) Non-controlling interest 1,12,293 83,379
Total liabilities and equity 1,02,38,628 82,93,026
Significant accounting policies 2
See accompanying notes forming part of the financial statements 3 to 53
In terms of our report attached For and on behalf of the Board of Directors
For Khimji Kunverji & Co LLP Saurabh Agrawal Malvika Sinha Varsha Purandare
Chartered Accountants (Chairman) (Director) (Director) (Pune)
Firm’s Registration No: 105146W/W100621 DIN: 02144558 DIN: 08373142 DIN: 05288076
Hasmukh B. Dedhia F. N. Subedar Aarthi Subramanian Rajiv Sabharwal

Partner (Director) (Director) (Managing Director & CEO)
Membership No: 033494 DIN: 00028428 DIN: 07121802 DIN: 00057333
Sarita Kamath Rakesh Bhatia

Mumbai (Head-Legal and Compliance (Chief Financial Officer)
April 26, 2022 & Company Secretary)
89
CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED MARCH 31, 2022
(` in lakh)
For the year For the year
Note
Particulars ended ended
No.
March 31, 2022 March 31, 2021
Revenue from operations
(i) Interest income 23 9,09,089 8,72,779
(ii) Dividend income 82 63
(iii) Rental income 30,339 37,735
(iv) Fees and commission income 24 19,823 14,976
(v) Net gain on fair value changes 25 39,923 49,887
(vi) Net gain on derecognition of associates 5,715 8,102
(vii) Net gain on derecognition of investment carried at 87 -
amortised cost
I Total revenue from operations 10,05,058 9,83,542
II Other income 26 20,207 15,230
III Total income (I + II) 10,25,265 9,98,772
Expenses
(i) Finance costs 27 4,88,903 5,21,258
(ii) Impairment on investment in associates 267 5,254
(iii) Impairment on financial instruments 28 1,08,061 1,39,777
(iv) Employee benefit expenses 29 87,525 69,398
(v) Depreciation, amortisation and impairment 12 27,588 33,437
(vi) Other expenses 30 89,113 67,879
IV Total expenses 8,01,457 8,37,003
V Profit from continuing operations before exceptional 2,23,808 1,61,769
items, share of net profits of investments accounted
for using equity method and tax
VI Share in profit/(loss) of associates 10,964 (272)
VII Profit from continuing operations before exceptional 2,34,772 1,61,497
items and tax (VII + VIII)
VIII Exceptional items - -
IX Profit before tax from continuing operations (VIII - IX) 2,34,772 1,61,497
Tax expense
(i) Current tax 11 65,700 42,738
(ii) Deferred tax 11 (11,009) (5,705)
X Net tax expenses 54,691 37,033
XI Profit for the year from continuing operations (IX-X) 1,80,081 1,24,464
XII Other comprehensive income
A Items that will not be reclassified to profit or loss
Owners of the Company
(a) Remeasurement of the defined benefit plans (247) 1,584
(b) Current tax relating to Remeasurement of defined 62 (397)
employee benefit plans
Non controlling interest
(a) Remeasurement of the defined benefit plans (net of tax) - 7
90
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
B Items that will be reclassified to profit or loss
Owners of the Company
(a) Debt instruments through Other Comprehensive Income (1,068) 117
(b) Income tax on Debt instruments through Other 182 (20)
Comprehensive Income
(c) Fair value gain/(loss) on financial assets carried at Fair (1,056) 1,029
Value Through Other Comprehensive Income (FVTOCI)
(d) Income tax relating to Fair value gain/(loss) on financial 327 (302)
asset measured through Other Comprehensive Income
(e) The effective portion of loss on hedging instruments 5,283 (2,463)
in a cash flow hedge
(f) Income tax relating to the effective portion of loss on (1,361) 629
hedging instruments in a cash flow hedge
(g) Share of other comprehensive income in associates (net) 1,338 158
(h) Exchange differences in translating financial 1,603 (838)
statements of foreign operations
Non controlling interest
(a) Fair value gain / (loss) on financial asset measured (134) 296
through Other Comprehensive Income
(b) The effective portion of loss on hedging instruments 124 (36)
in a cash flow hedge
Total Other Comprehensive Income 5,053 (236)
XIII Total Comprehensive Income for the year (XI+XII) 1,85,134 1,24,228
(Comprising Profit and Other Comprehensive Income
for the year)
XIV Profit for the year attributable to:
Owners of the company 1,64,821 1,12,583
Non-controlling interest 15,260 11,881
XV Other comprehensive income for the year attributable to:
Owners of the company 5,063 (503)
Non-controlling interest (10) 267
XVI Total comprehensive income for the year attributable
to: (XIV+XV)
Total comprehensive income for the year attributable to:
Owners of the company 1,69,884 1,12,080
XVII Earnings per equity share (Face value : ` 10 per share) 38
(1) Basic (In `) 4.69 3.20
(2) Diluted (In `) 4.69 3.20
See accompanying notes forming part of the financial statements 3 to 53
91
CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED MARCH 31, 2022
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
1 CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 2,34,772 1,61,497
Adjustments for :
Depreciation, amortisation and impairment 27,588 33,437
Net loss/(gain) on derecognition of property, plant (1,014) 46
and equipment and right-to-use assets
Interest expenses 4,88,903 5,21,258
Interest income (9,09,089) (8,72,779)
Dividend income (82) (63)
Provision for leave encashment 89 155
Exchange (gain)/loss (net) (8) 40
Net loss /(gain) on fair value changes
- Realised (8,327) (15,317)
- Unrealised (31,596) (34,570)
Net loss/(gain) on derecognition of investment in (5,715) (8,102)
Associates
Net gain on derecognition of investment carried at (87) -
amortised cost
Share in profit of associates (10,964) 272
Share based payments to employees 1,510 1,068
Interest on income tax refund (54) (2,494)
Impairment on financial instruments 1,08,081 1,39,765
Impairment on investments 264 5,251
Provision against trade receivables (17) 15
Provision against assets held for sale (1) (466)
(1,05,747) (70,987)
Interest paid (4,48,837) (4,80,901)
Interest received 8,62,760 8,68,764
Interest received on income tax refund 54 2,494
Dividend received 113 63
Cash generated from operation before working 3,08,343 3,19,433
capital changes
92
FOR THE YEAR ENDED MARCH 31, 2022 (contd...)
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
Movement in working capital:
(Increase)/decrease in loans (17,09,805) (38,395)
Decrease in trade receivables (566) 1,972
Decrease/(Increase) in other financial/non financial 26,142 (11,974)
assets
Increase/(decrease) in other financial/ non financial (22,539) 49,129
liabilities
Increase/(decrease) in provisions (314) 880
Increase/(decrease) in trade payable 21,801 17,924
(16,85,281) 19,536
Taxes paid (net) (61,746) (25,293)
NET CASH (USED IN)/GENERATED FROM OPERATING (14,38,684) 3,13,676
ACTIVITIES
2 CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (including (3,996) (6,113)
capital advances)
Proceeds from sale of property, plant and equipment 6,357 5,525
Investment in associates (18,914) (8,527)
Purchase of mutual fund units (2,40,59,295) (9,17,58,675)
Purchase of other investments (6,14,931) (1,70,504)
Proceeds from redemption of mutual fund units 2,39,12,414 9,16,18,896
Proceeds from sale of associates 11,429 -
Proceeds from sale of other investments 5,07,395 55,258
Purchase of fixed deposits with banks having maturity (2,169) 1,566
exceeding 3 months
NET CASH (USED IN)/GENERATED FROM INVESTING (2,61,710) (2,62,574)
ACTIVITIES
3 CASH FLOW FROM FINANCING ACTIVITIES
Infusion of capital by minority shareholders 20,080 26,014
Payout of income/gain to contributors (3,571) (2,074)
Repayment of lease obligation (3,670) (3,699)
Redemption of preference shares (4,988) (30,740)
Debenture issue/loan processing expenses (1,735) (2,766)
Dividend paid on preference shares (8,244) (9,075)
Proceeds from debt Securities 65,28,619 34,32,987
Proceeds from borrowings (other than debt securities) 48,09,067 31,49,875
Proceeds from subordinated liabilities 1,07,100 54,908
Repayment of debt Securities (56,63,063) (34,00,387)
93

FOR THE YEAR ENDED MARCH 31, 2022 (contd...)
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
Repayment of borrowings (other than debt securities) (40,67,245) (35,06,130)
Repayment of subordinated liabilities (6,792) 12,419
NET CASH (USED IN)/GENERATED FROM 17,05,558 (2,78,668)
FINANCING ACTIVITIES
NET (DECREASE)/INCREASE IN CASH AND CASH 5,164 (2,27,566)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AS AT THE 2,02,691 4,30,235
BEGINNING OF THE YEAR
Exchange difference on translation of foreign currency 307 22
cash and cash equivalents
CASH AND CASH EQUIVALENTS AS AT THE END 2,08,162 2,02,691
OF THE YEAR
See accompanying notes forming part of the financial 3 to 53
statements


94
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED MARCH 31, 2022
a) Equity share capital
As at March 31, 2022 As at March 31, 2021
Particulars
No. of Shares ` in lakh No. of Shares ` in lakh
Issued, subscribed and fully paid up equity shares 3,46,36,42,214 3,46,360 3,46,44,18,549 3,46,375
outstanding at the beginning of the year
Changes in equity share capital due to prior period error - - - -
Restated balance 3,46,36,42,214 3,46,360 3,46,44,18,549 3,46,375
Add/(less): Shares issued during the year:
- Against employee stock option (2,72,469) (27) (7,76,335) (78)
Less: Loans to Employees 2 63
Issued, subscribed and fully paid up equity shares 3,46,33,69,745 3,46,335 3,46,36,42,214 3,46,360
outstanding at the end of the year
b. Other Equity
(` in lakh)
Particulars Reserve and surplus
Securities Capital Capital Debenture Special Retained General Employee
premium reserve Redemption Redemption Reserve earnings Reserve stock option
Reserve Reserve Account outstanding
account
Balance as at April 01, 2020 2,93,419 43 575 30,000 1,08,732 93,412 1,297 1,531
Changes in accounting policy / prior period errors - - - - - - - -
Restated balance as at April 1, 2020 2,93,419 43 575 30,000 1,08,732 93,412 1,297 1,531
Profit for the year (a) - - - - - 1,12,583 - -
Other comprehensive income, net of tax (b) - - - - - - - -
Total comprehensive income for the year (c)=(a)+(b) - - - - - 1,12,583 - -
Elimination against shares held by the ESOP Trust (243) - - - - - - -
Share issue expenses - - - - - - - -
Employee share options (net) - - - - - - 488 580
Transfer to Special Reserve Account - - - - 30,490 (30,490) - -
Loan given to employees for ESOP's held 147 - - - - - - -
Increase/(decrease) in non-controlling interests due
to dilution/ divestment/acquisition - - - - - 2,167 - -
Payout of income to contributors - - - - - - - -
Balance as at March 31, 2021 2,93,323 43 575 30,000 1,39,222 1,77,672 1,785 2,111
Restated balance as at April 1, 2021 2,93,323 43 575 30,000 1,39,222 1,77,672 1,785 2,111
Profit for the year (a) - - - - - 1,64,821 - -
Other comprehensive income, net of tax (b) - - - - - - - -
Total comprehensive income for the year (c)=(a)+(b) - - - - - 1,64,821 - -
Elimination against shares held by the ESOP Trust (112) - - - - - - -
Share issue expenses (2) - - - - - - -
Employee share options (net) - - - - - - 241 1,168
Transfer to Special Reserve Account - - - - 35,113 (35,113) - -
Elimination against shares held by the ESOP Trust - - - - - - - -
Loan given to employees for ESOP's held 5 - - - - - - -
Increase/(decrease) in non-controlling interests due
to dilution/ divestment/acquisition - - - - - 2,847 - -
Payout of income to contributors - - - - - - - -
Balance as at March 31, 2022 2,93,214 43 575 30,000 1,74,335 3,10,227 2,026 3,279
95
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED MARCH 31, 2022
Particulars Items of other comprehensive income Total Non- Total
Foreign Remeasure- Fair value Debt Cost of Other Controlling
currency ment of changes instru- hedge Equity interest
translation defined of financial ments reserve
reserve benefit instrument through
liability/ measured Other
asset at fair value Compre-
through other hensive
comprehensive Income
income
Balance as at April 01, 2020 8,342 (1,357) 439 (126) (586) 5,35,721 49,456 5,85,177
Restated balance as at April 1, 2020 8,342 (1,357) 439 (126) (586) 5,35,721 49,456 5,85,177
Profit for the year (a) 1,12,583 11,881 1,24,464
Other comprehensive income, net of tax (b) (838) 1,187 885 97 (1,834) (503) 267 (236)
Total comprehensive income for the year (c)=(a)+(b) (838) 1,187 885 97 (1,834) 1,12,080 12,148 1,24,228
Elimination against shares held by the ESOP Trust - - - - - (243) - (243)
Employee share options (net) - - - - - 1,068 - 1,068
Loan given to employees for ESOP's held - - - - - 147 - 147
Increase/(decrease) in non-controlling interests due - - - - - 2,167 23,847 26,014
to dilution/ divestment/acquisition
Payout of income to contributors - - - - - - (2,072) (2,072)
Balance as at March 31, 2021 7,504 (170) 1,324 (29) (2,420) 6,50,940 83,379 7,34,319
Restated balance as at April 1, 2021 7,504 (170) 1,324 (29) (2,420) 6,50,940 83,379 7,34,319
Profit for the year (a) - - - - 1,64,821 15,260 1,80,081
Other comprehensive income, net of tax (b) 1,603 (185) 609 (886) 3,922 5,063 (10) 5,053
Total comprehensive income for the year (c)=(a)+(b) 1,603 (185) 609 (886) 3,922 1,69,884 15,250 1,85,134
Elimination against shares held by the ESOP Trust - - - - - (112) - (112)
Share issue expenses - - - - - (2) - (2)
Employee share options (net) - - - - - 1,409 - 1,409
Loan given to employees for ESOP's held - - - - - 5 - 5
Increase in non-controlling interests due to - - - - - 2,847 17,233 20,080
investments
Payout of income to contributors - - - - - - (3,569) (3,569)
Balance as at March 31, 2022 9,107 (355) 1,933 (915) 1,502 8,24,971 1,12,293 9,37,264
See accompanying notes forming part of
the financial statements 3 to 53


96
Notes forming part of the Consolidated Financial Statements
1 CORPORATE INFORMATION
Tata Capital Limited (“TCL’’ or “Company”) is a subsidiary of Tata Sons Private Limited. In May
2012, the Company was registered with the Reserve Bank of India (“RBI”) as a Systemically
Important Non-Deposit Accepting Core Investment Company (“CIC”). The Company together with
its subsidiaries (collectively, the Group),is primarily engaged in lending and investing activities.
Further one of the subsidiary within the Group is also engaged in providing broking services and
undertaking trading activities. Information on the Group’s subsidiaries and associates is provided in
Note 31 & 32.
As a CIC, TCL is a primary holding Company, holding investments in its subsidiaries and other
group companies and carries out only such activities as are permitted under the guidelines issued
by RBI for CICs. The Company is domiciled in India and incorporated under the Companies Act,
2013 and listed its non-convertible debentures and commercial papers with BSE Limited and
National Stock Exchange Limited.
2 BASIS OF PREPARATION
i. Statement of compliance
These consolidated financial statements have been prepared in accordance with the Indian
Accounting Standards (IND AS) as per the Companies (Indian Accounting Standards) Rules,
2015, as amended by the Companies (Indian Accounting Standards) Rules, 2016, notified under
Section 133 of the Companies Act, 2013 (the “Act”), (as amended), other relevant provisions of
the Act, guidelines issued by the Reserve Bank of India and National Housing Bank as applicable
to an NBFCs and other accounting principles generally accepted in India. Any application
guidance / clarifications / directions issued by RBI/NHB or other regulators are implemented as
and when they are issued / applicable, the guidance notes/announcements issued by the Institute
of Chartered Accountants of India (ICAI) are also applied except where compliance with other
statutory promulgations require a different treatment. Accounting policies have been consistently
applied except where a newly issued Ind AS is initially adopted or a revision to an existing Ind AS
required a change in the accounting policy hitherto in use. The consolidated financial statements
were authorised for issue by the Board of Directors (BOD) on April 26, 2022.
ii. Presentation of consolidated financial statements

The Balance Sheet, Statement of Profit and Loss and Statement of Changes in Equity are
prepared and presented in the format prescribed in the Division III of Schedule III of the
Companies Act, 2013 (the ‘Act’). The Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS.
A summary of the significant accounting policies and other explanatory information is in
accordance with the Companies (Indian Accounting Standards) Rules, 2015 as specified under
Section 133 of the Companies Act, 2013 (the 'Act') including applicable Indian Accounting
Standards (Ind AS) and accounting principles generally accepted in India. 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.
Amounts in the consolidated financial statements are presented in Indian Rupees in Lakh,
which is also the Group’s functional currency, and all amounts have been rounded off to the
nearest lakhs unless otherwise indicated.
iii. Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except
for certain financial instruments that are measured at fair values at the end of each reporting
period as explained in the accounting policies below.
97
Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services at the time of entering into the transaction.
iv. Principles of Consolidation

The Group is able to exercise control over the operating decision of the investee companies,
resulting in variable returns to the Group and accordingly, the same are classified as
investment in subsidiary and line by line consolidation is carried out under the principles of
consolidation. The consolidated financial statements of the Group have been prepared on the
following basis:
a) The financial statements of the subsidiaries and associates used in the consolidation
are drawn up to the same reporting date as that of the Group i.e., March 31, 2022,
except for certain associates for which financial statements as on the reporting date are
not available. These have been consolidated based on their latest available financial
statements. Necessary adjustments have been made for the effects of significant
transactions and other events between the reporting dates of such financial statements
and the consolidated Financial Statements.
b) Subsidiaries are entities controlled by the Group. The Group controls an entity when it
is exposed to, or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity. The financial
statement of the subsidiaries are included in the consolidated financial statements from
the date on which control commences until the date on which control ceases. The
consolidated financial statements of the Group and its subsidiaries have been combined
on a line-by-line basis by grouping together like items of assets, liabilities, income and
expenses, after eliminating intra-group balances, intra-group transactions and resulting
unrealised profits or losses, unless cost cannot be recovered.
c) In case of an overseas subsidiary, being a non-integral operation, revenue items are
consolidated at the average rate prevailing during the year. All assets and liabilities are
converted at the rates prevailing at the end of the year. Any exchange difference arising
on consolidation is recognised in the “Foreign Currency Translation Reserve”.
d) Non-controlling interest (NCI) are measured at their proportionate share of the acquiree’s
net identifiable assets at the date of acquisition. Changes in the Group’s equity interest
in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
e) when the Group loses control over a subsidiary, it derecognises the assets and liabilities
of the subsidiary, and any related NCI and other components of equity. Any interest
retained in the former subsidiary is measured at fair value at the date of control is lost.
Any resulting gain or loss is recognised in profit or loss.
v. Investments in associates:
a) The Consolidated Financial Statements include the share of profit/ (loss) of associates,
which have been accounted for using the equity method as per Ind AS 28- (Accounting
for Investments in Associates in Consolidated Financial Statements). Accordingly,
the share of profit/ (loss) of the associates (the loss being restricted to the cost of the
investment) have been added/deducted to the costs of investments.
b) The difference between the cost of investment in the associate and the share
of net assets at the time of acquisition of shares in the associate is identified in the
Consolidated Financial Statements as Goodwill or Capital Reserve as the case may be
and adjusted against the carrying amount of investment in the associate
c) The carrying amount of investment in associates is reduced to recognise impairment, if
any, when there is objective evidence of impairment.
98
vi. Measurement of fair values:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date.
A number of the Group's accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.
Fair value for measurement and/or disclosure purposes for certain items in these consolidated
financial statements is determined considering the following measurement methods:
Items Measurement basis

Certain financial assets and liabilities Fair value
(including derivatives instruments)
Net defined benefit (asset)/liability Fair value of planned assets less present
value of defined benefit obligations
Property plant and equipment Value in use under Ind AS 36
Fair values are categorized into different levels (Level 1, Level 2 or Level 3) in a fair value
hierarchy based on the inputs used in the valuation techniques. When measuring the fair
value of an asset or a liability, the Group uses observable market data as far as possible. If
the inputs used to measure the fair value of an asset or a liability fall into different levels of
the fair value hierarchy, then the fair value measurement is categorized in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The levels are described as follows:
a. Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the Group can access at the measurement date
b. Level 2: inputs are inputs, other than quoted prices included within level 1, that are
observable for the asset or liability, either directly or indirectly; and
c. Level 3: inputs are unobservable inputs for the valuation of assets or liabilities that the
Group can access at the measurement date.
Refer notes 43(a) & 43(b) for valuation model and framework used for fair value measurement
and disclosure of financial instrument.
The Group recognizes transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.
vii. Use of estimates and judgements

The preparation of consolidated financial statements in conformity with Ind AS requires the
management of the Group to make judgements, assumptions and estimates that affect the
reported balances of assets and liabilities and disclosures relating to the contingent liabilities
as at the date of the consolidated financial statements and reported amounts of income
and expenses for the reporting period. The application of accounting policies that require
critical accounting estimates involving complex and subjective judgments and the use of
assumptions in the consolidated financial statements have been disclosed as applicable in
the respective notes to accounts. Accounting estimates could change from period to period.
99
Future results could differ from these estimates. Appropriate changes in estimates are made
as the Management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates are reflected in the consolidated financial statements in the period
in which changes are made and, if material, their effect are disclosed in the notes to the
consolidated financial statements.
Judgements:
Information about judgements made in applying accounting policies that have most significant
effect on the amount recognised in the consolidated financial statements is included in the
following note:
Note ix - classification of financial assets: assessment of the business model within which the
assets are held and assessment of whether the contractual terms of the financial asset are
solely payments of principal and interest on the principal amount outstanding.
Assumptions and estimation of uncertainties:

Information about assumptions and estimation of uncertainties that have a significant risk of
resulting in a material adjustment in the year ending March 31, 2022 are included in the
following notes:
xiv. Impairment test of non-financial assets: key assumption underlying recoverable amounts.
xiii. The Group’s EIR methodology: rate of return that represents the best estimate of a
constant rate of return over the expected behavioural Life of Loans given/taken
xiv. Useful life of property, plant, equipment and intangibles.
35. Significant judgments are involved in determining the provision for income taxes,
including amount expected to be paid / recovered for uncertain tax positions.
xxiii. Recognition and measurement of provisions and contingencies: key assumptions about
the likelihood and magnitude of outflow of resources.
xvi. Measurement of defined benefit obligations: key actuarial assumptions.
43. Determination of the fair value of financial instruments with significant unobservable
inputs.
45. Impairment of financial instruments: assessment of whether credit risk on the financial
asset has increased significantly since initial recognition, assumptions used in estimating
recoverable cash flows and incorporation of forward-looking information in the
measurement of expected credit loss (ECL). The weights assigned to different scenarios
for measurement of forward looking ECL, i.e. best case, worst case and base case also
requires judgement.
viii. Interest
Interest consists of consideration for the time value of money, for the credit risk associated
with the principal amount outstanding during a particular period of time and for other basic
lending risks and costs, as well as a profit margin.
Interest income is recognised using the effective interest method. The effective interest rate
(EIR) is the rate that exactly discounts estimated future cash flows through the expected life of
the financial instrument to the gross carrying amount of the financial asset.
Calculation of the EIR includes all fees paid or received that are incremental and directly
attributable to the acquisition or issue of a financial asset or liability.
Interest income is calculated by applying the EIR to the gross carrying amount of non-credit
impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for
any expected credit loss allowance). For credit-impaired financial assets the interest income
is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets
100
{i.e. at the amortised cost of the financial asset after adjusting for any expected credit loss
allowance (ECLs)}. The Group assesses the collectability of the interest on credit impaired
assets at each reporting date. Based on the outcome of such assessment, the interest income
accrued on credit impaired financial assets are either accounted for as income or written off as
per the write off policy of the Group.
ix. Income not integral to effective interest rate (EIR) method under Ind AS 109 and Fee
and Commission income from services and distribution of financial products:
The Group recognises the fee and commission income not integral to EIR under Ind AS 109
in accordance with the terms of the relevant customer contracts / agreement and when it is
probable that the Group will collect the consideration for items.
Revenue in the form of income from financial advisory, underwriting commission, income from
private equity asset under management, distribution from private equity funds, income from
distribution from financial products (brokerage) (other than for those items to which Ind AS
109 - Financial Instruments and Ind AS 116 – Leases are applicable) is measured at fair value
of the consideration received or receivable, in accordance with Ind AS 115 - Revenue from
contracts with customers.
The Group recognises revenue from contracts with customers based on a five-step model as
set out in Ind AS 115:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between
two or more parties that creates enforceable rights and obligations and sets out the criteria for
every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise
in a contract with a customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration
to which the Group expects to be entitled in exchange for transferring promised goods or
services to a customer, excluding amounts collected on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a
contract that has more than one performance obligation, the Group allocates the transaction
price to each performance obligation in an amount that depicts the amount of consideration
to which the Group expects to be entitled in exchange for satisfying each performance
obligation.
Step 5: Recognise revenue when (or as) the Group satisfies a performance obligation.
Fees for financial advisory services are accounted as and when the service is rendered,
provided there is reasonable certainty of its ultimate realisation.
Revenue from brokerage is recognised when the service is performed. Trail brokerage is
recognised at the end of the measurement period when the pre-defined thresholds are met.
Revenue is net of applicable indirect taxes and sub-brokerage.
Fees for Investment banking services are accounted based on stage of completion of
assignments and when there is reasonable certainty of its ultimate realization / collection.
Other Income includes branch advertising, represents income earned from the activities
incidental to the business and is recognised when the right to receive the income is
established as per the terms of the contract.
x. Dividend income
Income from dividend on investment in equity shares of corporate bodies and units of mutual
funds is accounted when the Group’s right to receive dividend is established and it is probable
that the economic benefits associated with the dividend will flow to the Group and the amount
of the dividend can be measured reliably.
101
xi. Leases
Asset given on lease:
Leases are classified as operating lease where significant portion of risks and reward of
ownership of assets acquired under lease is retained by the lessor. Leases of assets under
which substantially all of the risks and rewards of ownership are effectively retained by the
lessee are classified as finance lease.
Assets given under finance lease are recognised as a receivable at an amount equal to the
net investment in the lease. Lease rentals are apportioned between principal and interest on
the internal rate of return. The principal amount received reduces the net investment in the
lease and interest is recognised as revenue.
Lease rental - under operating leases (excluding amount for services such as insurance and
maintenance) are recognised on a straight-line basis over the lease term, except for increase
in line with expected inflationary cost increases.
Asset taken on lease:

The Group’s lease asset classes primarily consist of leases for properties.
The Group presents right-of-use assets and lease liabilities separately on the face of the
Balance sheet. Lease payments (including interest) have been classified as financing cashflows.
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The cost of the right-of-use asset measured at inception shall comprise of the amount
of the initial measurement of the lease liability adjusted for any lease payments made at or
before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or site on which it is located. The right-of-use
asset is subsequently measured at cost less any accumulated depreciation and accumulated
impairment loss, if any, and adjusted for certain re-measurements of the lease liability. The right-
of-use assets is depreciated using the straight-line method from the commencement date to
the end of the lease term. Right-of-use assets are tested for impairment whenever there is
any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognized in the statement of profit and loss. When a right-of-use asset meets the definition of
investment property, it is presented in investment property.
The Group measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted
using the interest rate implicit in the lease, if that rate can be readily determined. If that rate
cannot be readily determined, the Group uses incremental borrowing rate. The lease liability
is subsequently increased by the interest cost on the lease liability and decreased by lease
payment made. The carrying amount of lease liability is remeasured to reflect any reassessment
or lease modifications or to reflect revised in-substance fixed lease payments. A change in
the estimate of the amount expected to be payable under a residual value guarantee, or as
appropriate, changes in the assessment of whether a purchase or extension option is reasonably
certain to be exercised or a termination option is reasonably certain not be exercised. The
Group has applied judgement to determine the lease term for some lease contracts in which it
is a lessee that include renewal options. The assessment of whether the Group is reasonably
certain to exercise such options impacts the lease term, which significantly affects the amount
of lease liabilities and right of use assets recognised. The discounted rate is generally based on
incremental borrowing rate specific to the lease being evaluated.
xii. Borrowing Cost
Borrowing costs include interest expense calculated using the EIR on respective financial
instruments measured at amortised cost, finance charges in respect of assets acquired on
finance lease and exchange differences arising from foreign currency borrowings, to the extent
they are regarded as an adjustment to interest costs.
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The effective interest rate (EIR) is the rate that exactly discounts estimated future cash flows
through the expected life of the financial instrument to the gross carrying amount of the
financial liability.
Calculation of the EIR includes all fees paid that are incremental and directly attributable to the
issue of a financial liability.
While computing the capitalisation rate for funds borrowed generally, an entity should exclude
borrowing costs applicable to borrowings made specifically for obtaining a qualifying asset,
only until the asset is ready for its intended use or sale. Borrowing costs (related to specific
borrowings) that remain outstanding after the related qualifying asset is ready for intended use
or for sale would subsequently be considered as part of the general borrowing costs of the
entity.
xiii. Financial Instruments

Financial assets and financial liabilities are recognised in the Group's balance sheet on trade
date, i.e. when the Group becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs and
revenues that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities measured 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 and revenues of financial assets or financial
liabilities carried at fair value through the profit or loss account are recognised immediately in the
Statement of Profit or Loss. Trade Receivables are measured at transaction price.
a) Financial assets
Classification
On initial recognition, depending on the Group's business model for managing the
financial assets and its contractual cash flow characteristics, a financial asset is classified
as measured at;
1) Amortised cost;
2) Fair value through other comprehensive income (FVOCI); or
3) Fair value through profit and loss (FVTPL).
The classification depends on the entity's business model for managing the financial
assets and the contractual terms of the cash flows. Financial assets are not reclassified
subsequent to their initial recognition, except if and in the period the Group changes its
business model for managing financial assets.
A financial asset is measured at amortized cost using Effective Interest Rate (EIR)
method if it meets both of the following conditions and is not recognised as at FVTPL:
The asset is held within a business model whose objective is to hold assets 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.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in OCI
(designated as FVOCI - equity investment). This election is made on investment - by -
investment basis.
All financials assets not classified and measured at amortized cost or FVOCI as
described above are measured at FVTPL. On initial recognition, the Group may
irrevocably designate the financials assets that otherwise meets the requirements to
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be measured at amortized cost or at FVOCI or at FVTPL, if doing so eliminates or

significantly reduces the accounting mismatch that would otherwise arise.
Business model assessment

The Group makes an assessment of the objective of the business model in which a financial
asset is held at a portfolio level because this best reflects the way the business is managed
and information is provided to management. The information considered includes:
the stated policies and objectives for the portfolio and the operation of those policies in
practice.
how the performance of the portfolio is evaluated and reported to the Group's
management;
the risks that affect the performance of the business model (and the financial assets held
within that business model) and how those risks are managed;
the frequency, volume and timing of sales of financial assets in prior periods, the reasons
for such sales and expectation about future sales activity.
How managers of the business are compensated (e.g. whether the compensation
is based on the fair value of the assets managed or on the contractual cash flows
collected).
At initial recognition of a financial asset, the Group determines whether newly recognized
financial assets are part of an existing business model or whether they reflect a new
business model. The Group reassess its business models each reporting period to
determine whether the business models have changed since the preceding period.
Assessment whether contractual cash flows are solely payments of principal and
interest
For the purposes of this assessment, 'principal' is defined as the fair value of the
financial asset on initial recognition. That principal amount may change over the life
of the financial assets (e.g. if there are payments of principal). Amount of 'Interest' is
defined as consideration for the time value of money and for the credit risk associated
with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a
profit margin.
In assessing whether the contractual cash flows are solely payments of principal and
interest, the Group considers the contractual terms of the instrument. This includes
assessing whether the financial asset contains a contractual term that could change the
timing or amount of contractual cash flows such that it would not meet this condition. In
making this assessment, the Group considers:
Contingent events that would change the amount or timing of cash flows;
Terms that may adjust the contractual coupon rate, including variable interest rate
features;
Prepayment and extension features; and
Terms that limit the Group’s claim to cash flows from specified assets.
Contractual cash flows that are SPPI are consistent with a basic lending arrangement.
Contractual terms that introduce exposure to risks or volatility in the contractual cash flows
that are unrelated to a basic lending arrangement, such as exposure to changes in equity
prices or commodity prices, do not give rise to contractual cash flows that are SPPI.
A prepayment feature is consistent with the solely payments of principal and interest
criterion if the prepayment amount substantially represents unpaid amounts of principal
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and interest on the principal amount outstanding, which may include reasonable
additional compensation for early termination of the contract. Additionally, for a financial
asset acquired at a significant discount or premium to its contractual par amount, a
feature that permits or requires prepayment at an amount that substantially represents
the contractual par amount plus accrued (but unpaid) contractual interest (which may
also include reasonable additional compensation for early termination) is treated as
consistent with this criterion if the fair value of the prepayment feature is insignificant at
initial recognition.
Subsequent measurement and gains and losses

Financial assets at FVTPL These assets are subsequently measured at fair value.
Net gains and losses, including any interest or dividend
income, are recognised in the statement of profit or loss.
The transaction costs and fees are also recorded related
to these instruments in the statement of profit and loss.
Financial assets at These assets are subsequently measured at amortised
amortised cost cost using the effective interest method. The amortised
cost is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment are
recognised in the statement of profit or loss. Any gain or
loss on de-recognition is recognised in the statement of
profit or loss.
Financial assets (other Financial assets that are held within a business model
than Equity Investments) whose objective is achieved by both, selling financial
at FVOCI assets and collecting contractual cash flows that are
solely payments of principal and interest, are subsequently
measured at fair value through other comprehensive
income. Fair value movements are recognized in the
other comprehensive income (OCI). Interest income
measured using the EIR method and impairment losses,
if any are recognised in the statement of Profit and Loss.
On derecognition, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to 'other
income' in the statement of Profit and Loss.
Equity investments at These assets are subsequently measured at fair value.
FVOCI Dividends are recognised as income in the Statement
of Profit and Loss unless the dividend clearly represents
a recovery of part of the cost of the investment. Other
net gains and losses are recognised in OCI and are not
reclassified to profit or loss.
Reclassifications within classes of financial assets

Financial assets are not reclassified subsequent to their initial recognition, except in the
period after the Group changes its business model for managing financial assets. The
classification and measurement requirements of the new category apply prospectively
from the first day of the first reporting period following the change in business model that
result in reclassifying the Group’s financial assets.
Impairment of Financial Asset

Impairment approach
Overview of the Expected Credit Losses (ECL) principles
The Group records allowance for expected credit losses for all loans (including those
classified as measured at FVOCI), together with loan commitments, in this section
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all referred to as ‘financial instruments’ other than those measured at FVTPL. Equity
instruments are not subject to impairment under Ind AS 109.
The ECL allowance is based on the credit losses expected to arise over the life of the
asset (the lifetime expected credit loss or LTECL), unless there has been no significant
increase in credit risk since origination, in which case, the allowance is based on the 12
months’ expected credit loss (12m ECL). The Group’s policies for determining if there
has been a significant increase in credit risk are set out in Note 45.
The 12m ECL is the portion of LTECLs that represent the ECLs that result from default
events on a financial instrument that are possible within the 12 months after the reporting
date.
Both LTECLs and 12m ECLs are calculated on an individual/portfolio basis- having
similar risk characteristic, depending on the nature of the underlying portfolio of financial
instruments.
The Group has established a policy to perform an assessment, at the end of each
reporting period, of whether a financial instrument's credit risk has increased significantly
since initial recognition, by considering the change in the risk of default occurring over
the remaining life of the financial instrument.
Based on the above process, the Group categorises its loans into Stage 1, Stage 2 and
Stage 3, as described below:
Stage 1: When loans are first recognised, the Group recognises an allowance based on
12mECLs. This also include facilities where the credit risk has improved and the loan has
been reclassified from Stage 2.
Stage 2: When a loan has shown a significant increase in credit risk since origination, the
Group records an allowance for the LTECLs. Stage 2 loans also include facilities, where
the credit risk has improved and the loan has been reclassified from Stage 3.
Stage 3: Loans considered credit-impaired. A default on a financial asset is when the
counterparty fails to make the contractual payments within 90 days of when they fall
due. Accordingly, the financial assets shall be classified as Stage 3, if on the reporting
date, it has been 90 days past due. Further if the customer has requested forbearance
in repayment terms, such restructured, rescheduled or renegotiated accounts are also
classified as Stage 3. Non-payment on another obligation of the same customer is also
considered as a stage 3. Defaulted accounts include customers reported as fraud in the
FRMC. Once an account defaults as a result of the DPD condition, it will be considered
to be cured only when entire arrears of interest and principal are paid by the borrower.
The Company records an allowance for the LTECLs.
Undrawn loan commitments

Undrawn loan commitments are commitments under which, over the duration of the
commitment, the Group is required to provide a loan with pre-specified terms to the
customer. Undrawn loan commitments are in the scope of the ECL requirements.
Financial guarantee contract:

A financial guarantee contract requires the Group to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to
make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by the Group are initially measured at their fair
values and, if not designated as at FVTPL and not arising from a transfer of a financial
asset, are subsequently measured at the higher of:
● the amount of the loss allowance determined in accordance with Ind AS 109; and
● the amount initially recognised less, where appropriate, cumulative amount of
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income recognised in accordance with the Group’s revenue recognition policies.
The Group has not designated any financial guarantee contracts as FVTPL.
Group’s ECL for financial guarantee is estimated based on the present value of
the expected payments to reimburse the holder for a credit loss that it incurs. The
shortfalls are discounted by the interest rate relevant to the exposure.
The Measurement of ECLs

The Group calculates ECLs based on a probability-weighted scenario to measure the
expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is
the difference between the cash flows that are due to an entity in accordance with the
contract and the cash flows that the entity expects to receive.
The mechanics of the ECL calculations are outlined below and the key elements are, as
follows:
Probability of Default (PD): The Probability of Default is an estimate of the likelihood of default
over a given time horizon. A default may only happen at a certain time over the assessed
period, if the facility has not been previously derecognised and is still in the portfolio.
Exposure at Default (EAD): The Exposure at Default is an estimate of the exposure
at a future default date, taking into account expected changes in the exposure after
the reporting date, including repayments of principal and interest, whether scheduled by
contract or otherwise, expected drawdowns on committed facilities, and accrued interest
from missed payments.
Loss Given Default (LGD): The Loss Given Default is an estimate of the loss arising in
the case where a default occurs at a given time. It is based on the difference between
the contractual cash flows due and those that the lender would expect to receive,
including from the realisation of any collateral. It is usually expressed as a percentage of
the EAD.
Impairment losses and releases are accounted for and disclosed separately from
modification losses or gains that are accounted for as an adjustment of the financial
asset's gross carrying value.
When estimating LTECLs for undrawn loan commitments, the Group estimates the
expected portion of the loan commitment that will be drawn down over its expected life.
The ECL is then based on the present value of the expected shortfalls in cash flows if
the loan is drawn down, based on a probability-weightage. The expected cash shortfalls
are discounted at an approximation to the expected EIR on the loan.
The above calculated PDs, EAD and LGDs are reviewed and changes in the forward
looking estimates are analysed during the year.
The mechanics of the ECL method are summarised below:

Stage 1; The 12 months ECL is calculated as the portion of LTECLs that represent the
ECLs that result from default events on a financial instrument that are possible within the
12 months after the reporting date. These expected 12-months default probabilities are
applied to a forecast EAD and multiplied by the expected LGD.
Stage 2; When a loan has shown a significant increase in credit risk since origination,
the Group records an allowance for the LTECLs. The mechanics are similar to those
explained above, but PDs and LGDs are estimated over the lifetime of the instrument.
The expected cash shortfalls are discounted by a contractual or portfolio EIR as the case
may be
Stage 3; For loans considered credit-impaired, the Group recognises the lifetime
expected credit losses for these loans. The method is similar to that for stage 2 assets,
with the PD set at 100%.
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In ECL model the Group relies on broad range of forward looking information for
economic inputs.
The Group recognises loss allowance for expected credit losses (ECLs) on all financial
assets at amortised cost that are debt instruments, debt financial assets at fair value
through other comprehensive income, loan commitments and financial guarantee
contracts. No impairment loss is recognised on equity investments.
When determining whether credit risk of a financial asset has increased significantly
since initial recognition and when estimating expected credit losses, the Group considers
reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis,
including historical experience and forward-looking information (Refer Note 43).
Impairment of Trade receivable and Operating lease receivable

Impairment allowance on trade receivables is made on the basis of life time credit loss
method, in addition to specific provision considering the uncertainty of recoverability of
certain receivables.
Write-off
Impaired loans and receivables are written off, against the related allowance for loan
impairment on completion of the Group's internal processes and when the Group
concludes that there is no longer any realistic prospect of recovery of part or all of the
loan. For loans that are individually assessed for impairment, the timing of write off is
determined on a case by case basis. A write-off constitutes a de-recognition event. The
Group has a right to apply enforcement activities to recover such written off financial
assets. Subsequent recoveries of amounts previously written off are credited to the
statement of profit and loss.
Collateral valuation and repossession

To mitigate the credit risk on financial assets, the Group seeks to use collateral, where
possible as per the powers conferred on the Non Banking Finance Companies under
the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities
Interest Act, 2002 (“SARFAESI”).
The Group provides fully secured, partially secured and unsecured loans to individuals
and Corporates. In its normal course of business upon account becoming delinquent, the
Group physically repossess properties or other assets in its retail portfolio. Any surplus
funds are returned to the customers/obligors. As a result of this practice, the residential
properties, vehicles, plant and machinery under legal repossession processes are not
recorded on the balance sheet and not treated as non–current assets held for sale
unless the title is also transferred in the name of the Group.
Presentation of ECL allowance for financial asset:
Type of Financial asset Disclosure

Financial asset measured at amortised shown as a deduction from the gross
cost carrying amount of the assets
Loan commitments and financial shown separately under the head
guarantee contracts “provisions”
Modification and De-recognition of financial assets

Modification of financial assets
A modification of a financial asset occurs when the contractual terms governing the
cash flows of a financial asset are renegotiated or otherwise modified between initial
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recognition and maturity of the financial asset. A modification affects the amount and/
or timing of the contractual cash flows either immediately or at a future date. The Group
renegotiates loans to customers in financial difficulty to maximise collection and minimise
the risk of default. A loan forbearance is granted in cases where although the borrower
made all reasonable efforts to pay under the original contractual terms, there is a high
risk of default or default has already happened and the borrower is expected to be able
to meet the revised terms. The revised terms in most of the cases include an extension
of the maturity of the loan, changes to the timing of the cash flows of the loan (principal
and interest repayment), reduction in the amount of cash flows due (principal and
interest forgiveness). Such accounts are classified as stage 3 immediately upon such
modification in the terms of the contract.
Not all changes in terms of loans are considered as renegotiation and changes in terms
of a class of obligors that are not overdue is not considered as renegotiation and is not
subjected to deterioration in staging.
De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognised when:
(a) the rights to receive cash flows from the asset have expired, or
(b) the Group has transferred its rights to receive cash flows from the asset and
substantially all the risks and rewards of ownership of the asset, or the Group has
neither transferred nor retained substantially all the risks and rewards of ownership
of the asset, but has transferred control of the asset.
If the Group retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Group continues to recognise the financial asset and also recognises
a collateralised borrowing for the proceeds received.
On derecognition of a financial asset, the difference between the carrying amount of the
asset (or the carrying amount allocated to the portion of the asset derecognised) and the
sum of (i) the consideration received (including any new asset obtained less any new
liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is
recognised in profit or loss.
Any cumulative gain/loss recognised in OCI in respect of equity investment securities
designated as at FVOCI is not recognised in profit or loss on derecognition of such
securities. Any interest in transferred financial assets that qualify for derecognition that is
created or retained by the Group is recognised as a separate asset or liability.
Financial liability, Equity and Compound Financial Instruments

Debt and equity instruments that are issued are classified as either financial liabilities or
as equity in accordance with the substance of the contractual arrangement.
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 Group are
recognised at the proceeds received, net of direct issue costs.
Financial liabilities are subsequently measured at the amortised cost using the effective
interest method, unless at initial recognition, they are classified as fair value through
profit and loss. Interest expenses are recognised in the Statement of profit and loss. Any
gain or loss on derecognition is also recognised in the statement of profit or loss.
Financial liabilities
A financial liability is a contractual obligation to deliver cash or another financial asset or
to exchange financial assets or financial liabilities with another entity under conditions
that are potentially unfavourable to the Group or a contract that will or may be settled in
109
the Group's own equity instruments and is a non-derivative contract for which the Group
is or may be obliged to deliver a variable number of its own equity instruments, or a
derivative contract over own equity that will or may be settled other than by the exchange
of a fixed amount of cash (or another financial asset) for a fixed number of the Group's
own equity instruments.
Classification
The Group classifies its financial liability as “Financial liability measured at amortised
cost” except for those classified as financial liabilities measured at fair value through
profit and loss (FVTPL).
De-recognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations
are discharged, cancelled or have expired. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is
Equity
an entity after deducting all of its liabilities. Equity instruments issued by the Group are
recognised at the proceeds received, net of direct issue costs. A conversion option that
will be settled by the exchange of a fixed amount of cash or another financial asset for a
fixed number of the Group's own equity instruments is an equity instrument.
No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of
the Group’s own equity instruments.
Compound instruments
The Group has issued financial instruments with equity conversion rights and call
options. When establishing the accounting treatment for these non-derivative instruments,
the Group first establishes whether the instrument is a compound instrument and
classifies such instrument’s components separately as financial liabilities or equity
instruments in accordance with Ind AS 32. Classification of the liability and equity
components of a convertible instrument is not revised as a result of a change in the
likelihood that a conversion option will be exercised, even when exercising the option
may appear to have become economically advantageous to some holders. When
allocating the initial carrying amount of a compound financial instrument to the equity
and liability components, the equity component is assigned as the residual amount after
deducting from the entire fair value of the instrument, the amount separately determined
for the liability component. The value of any derivative features (such as a call options)
embedded in the compound financial instrument, other than the equity component (such
as an equity conversion option), is included in the liability component. Once the Group
has determined the split between equity and liability, it further evaluates whether the
liability component has embedded derivatives that must be separately accounted for.
Subsequently the liability is measured as per requirement of IND AS 109.
A Cumulative Compulsorily Convertible Preference Shares (CCCPS), with an option to
holder to convert the instrument into variable number of equity shares of the entity upon
redemption is classified as a financial liability and dividend including dividend distribution
tax is accrued on such instruments and recorded as finance cost. Where the conversion
option remains unexercised at the maturity date of the convertible note, the balance
recognised in equity will be transferred to retained profits. No gain/loss is recognised in
profit or loss upon conversion or expiration of the conversion option.
b) Derivative Financial Instruments

The Group holds derivative financial instruments to hedge its foreign currency and
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interest rate risk exposures. Embedded derivatives are separated from the host contract
and accounted for separately if certain criteria are met.
Derivatives are initially recognised at fair value at the date a derivative contract is
entered into and are subsequently remeasured to their fair value at each balance sheet
date. The resulting gain/loss is recognised in the statement of profit and loss immediately
unless the derivative is designated and is effective as a hedging instrument, in which
event the timing of the recognition in the statement of profit and loss depends on the
nature of the hedge relationship.
The Group designates certain derivatives as hedging instruments to hedge the variability
in cash flows associated with its floating rate borrowings arising from changes in interest
rates and exchange rates.
At inception of designated hedging relationships, the Group documents the risk
management objective and strategy for undertaking the hedge. The Group also
documents the economic relationship between the hedged item and the hedging
instrument, including whether the changes in cash flows of the hedged item and hedging
instrument are expected to offset each other.
Cash flow hedges

When a derivative is designated as a cash flow hedging instrument, the effective portion
of changes in the fair value of the derivative is recognised in OCI and accumulated
in the other equity under 'effective portion of cash flows hedges’. The effective portion
of changes in the fair value of the derivative that is recognised in OCI is limited to
the cumulative change in fair value of the hedged item, determined on a present value
basis, from inception of the hedge. Any ineffective portion of changes in fair value of the
derivative is recognised immediately in profit or loss.
The Group designates only the change in fair value of the spot element of forward
exchange contracts as the hedging instrument in cash flow hedge relationships. The
change in fair value of the forward element of the forward exchange contracts ('forward
points') is separately accounted for as cost of hedging and recognised separately within
equity.
If a hedge no longer meets the criteria for hedge accounting or the hedging instrument
is sold, expires, is terminated or is exercised, then hedge accounting is discontinued
prospectively. If the hedged future cash flows are no longer expected to occur, then the
amounts that have been accumulated in other equity are immediately reclassified to profit
or loss.
c) Cash, Cash equivalents and bank balances

Cash, Cash equivalents and bank balances include fixed deposits, (with an original
maturity of three months or less from the date of placement), margin money deposits,
and earmarked balances with banks are carried at amortised cost. Short term and liquid
investments being subject to more than insignificant risk of change in value, are included
as part of cash and cash equivalents.
xiv. Property, plant and equipment (PPE)

a) PPE
Property, plant and equipment acquired by the Group are reported at acquisition cost
less accumulated depreciation and accumulated impairment losses and estimated cost
of dismantling and removing the item and restoring the site on which its located if any.
However estimated cost of dismantling and removing the item and restoring the site
on which its located does not arise for leased assets since the same are borne by the
lessee as per the lease agreement. The acquisition cost includes any cost attributable for
bringing an asset to its working condition net of tax/duty credits availed, which comprises
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of purchase consideration and other directly attributable costs of bringing the assets to
their working condition for their intended use. PPE is recognised when it is probable
that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. Subsequent expenditure on PPE after its
purchase is capitalized only if it is probable that the future economic benefits will flow to
the enterprise and the cost of the item can be measured reliably.
b) Capital work-in-progress
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as
“capital work-in-progress” and carried at cost, comprising direct cost, related incidental
expenses and attributable interest.
c) Other Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits
that are attributable to the asset will flow to the Group and the cost of the asset can be
measured reliably. Intangible assets are stated at original cost net of tax/duty credits
availed, if any, less accumulated amortisation and cumulative impairment. Administrative
and other general overhead expenses that are specifically attributable to the acquisition
of intangible assets are allocated and capitalised as a part of the cost of the intangible
assets. Expenses on software support and maintenance are charged to the Statement of
Profit and Loss during the year in which such costs are incurred.
d) Intangible assets under development

Intangible assets not ready for the intended use on the date of Balance Sheet are
disclosed as “Intangible assets under development”.
e) Depreciation and Amortisation

Depreciable amount for tangible property, plant and equipment is the cost of an asset, or
other amount substituted for cost, less its estimated residual value. The residual value of
each asset given on Operating lease is determined at the time of recording of the lease
asset. If the residual value of the Operating lease asset is higher than 5%, the Group has
a justification in place for considering the same.
Depreciation on tangible property, plant and equipment deployed for own use has been
provided on the straight-line method as per the useful life prescribed in Schedule II to
the Companies Act, 2013 except in respect of buildings, computer equipment, electrical
installation and equipment and vehicles, in whose case the life of the assets has
been assessed based on the nature of the asset, the estimated usage of the asset,
the operating conditions of the asset, past history of replacement, etc. Depreciation on
tangible property, plant and equipment deployed on operating lease has been provided
on the straight-line method over the primary lease period of the asset. Depreciation
method is reviewed at each financial year end to reflect expected pattern of consumption
of the future economic benefits embodied in the asset. The estimated useful life and
residual values are also reviewed at each financial year end with the effect of any
change in the estimates of useful life/residual value is accounted on prospective basis.
Depreciation for additions to/deductions from owned assets is calculated pro rata to the
remaining period of use. Depreciation charge for impaired assets is adjusted in future
periods in such a manner that the revised carrying amount of the asset is allocated over
its remaining useful life. All capital assets with individual value less than ` 5,000 are
depreciated fully in the year in which they are purchased.
Purchased software / licenses are amortised over the estimated useful life during which
the benefits are expected to accrue, while Goodwill if any is tested for impairment at
each Balance Sheet date. The method of amortisation, residual value and useful life
are reviewed at the end of each accounting year with the effect of any changes in the
112
estimate being accounted for on a prospective basis. Amortisation on impaired assets is
provided by adjusting the amortisation charge in the remaining periods so as to allocate
the asset's revised carrying amount over its remaining useful life.
Estimated useful life of Owned assets considered by the Group are:

Asset Estimated Useful Life
Leasehold Improvements As per lease period
Construction Equipment 2 to 13.5 years
Furniture and Fixtures 10 years
Computer Equipment 3 to 4 years
Office Equipment 5 years
Vehicles 4 years
Software Licenses 1 to 10 years
Buildings 25 years
Plant & Machinery 10 years
Leased assets: as per the lease period
f) Investment property
Properties held to earn rentals and/or capital appreciation are classified as Investment
properties and measured and reported at cost, including transaction costs. Subsequent
to initial recognition its measured at cost less accumulated depreciation and accumulated
impairment losses, if any. When the use of an existing property changes from owner-
occupied to investment property, the property is reclassified as investment property at its
carrying amount on the date of reclassification.
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 de-recognition of property is recognised in the
Statement of Profit and Loss in the same period.
g) Impairment of assets
Upon an observed trigger or at the end of each accounting reporting period, the Group
reviews the carrying amounts of its PPE, investment property and intangible asset to
determine whether there is any indication that the asset have suffered an impairment
loss. If such indication exists, the PPE, investment property and intangible assets are
tested for impairment so as to determine the impairment loss, if any.
Impairment loss is recognised when the carrying amount of an asset exceeds its
recoverable amount. Recoverable amount is the higher of fair value less cost of
disposal and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
If recoverable amount of an asset is estimated to be less than its carrying amount, such
deficit is recognised immediately in the Statement of Profit and Loss as impairment loss
and the carrying amount of the asset is reduced to its recoverable amount.
When an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in the Statement of Profit and Loss.
113
h) De-recognition of property, plant and equipment and intangible asset

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. Any
gain or loss arising on the disposal or retirement of an item of PPE is determined as
the difference between the sales proceeds and the carrying amount of the asset and is
recognised in the Statement of Profit and Loss. An intangible asset is derecognised on
disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from de-recognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset, are recognised
in the Statement of Profit and Loss.
xv. Non-Current Assets held for sale:

Non-current assets are classified as held for sale if their carrying amount is intended to
be recovered principally through a sale (rather than through continuing use) when the
asset is available for immediate sale in its present condition subject only to terms that
are usual and customary for sale of such asset and the sale is highly probable and is
expected to qualify for recognition as a completed sale within one year from the date of
classification.
Non-current assets classified as held for sale are measured at lower of their carrying amount
and fair value less costs to sell.
The Group has a policy to make impairment provision at one third of the value of the Asset
for each year upon completion of three years up to the end of five years based on the past
observed pattern of recoveries. Losses on initial classification as Held for sale and subsequent
gains & losses on Remeasurement are recognised in Statement of Profit and loss. Once
classified as Held for sale, the assets are no longer amortised or depreciated.
xvi. Employee Benefits

Defined Contribution benefits include superannuation fund.
Defined Employee benefits include gratuity fund, provident fund compensated absences and
long service awards.
Defined contribution plans

The Group's contribution to superannuation fund is considered as defined contribution plan
and is charged as an expense in the Statement of Profit and Loss based on the amount of
contribution required to be made and when services are rendered by the employees.
Defined benefit plans

The Group makes Provident Fund contributions, a defined benefit plan for qualifying
employees. Under the Schemes, both employees and the Company make monthly
contributions at a specified percentage of the covered employees’ salary (currently 12% of
employees’ salary). The contributions, except that the employer’s contribution towards pension
fund is paid to the Regional Provident Fund office, as specified under the law, are made
to the provident fund set up as an irrevocable trust by Tata Capital Limited (“the ultimate
parent Company”). The interest rate payable to the members of the trust shall not be lower
than the statutory rate of interest declared by the Central Government under the Employees
Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall on account of , if any,
shall be made good by the Group. Hence the Group is liable for annual contributions and
any deficiency in interest cost compared to interest computed based on the rate of interest
declared by the Central Government. The total liability in respect of the interest shortfall of
the Fund is determined on the basis of an actuarial valuation. The interest liability arising only
to the extent of the aforesaid differential shortfalls is a defined benefit plan. There is no such
shortfall as at March 31, 2022.
114
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised during the year when the employees
render the service. These benefits include performance incentive and compensated absences
which are expected to occur within twelve months after the end of the reporting period in
which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render the services
that increase their entitlement of future compensated absences; and
(b) in case of non-accumulating compensated absences, when the absences occur.
Other long-term employee benefits

Compensated absences which are not expected to occur within twelve months after
the end of the year in which the employee renders the related service are recognised
as a liability at the present value of the defined benefit obligation as at the balance
sheet date less the fair value of the plan assets out of which the obligations are
expected to be settled. Long term service awards are recognised as a liability at
the present value of the defined benefit obligation as at the balance sheet date.
The obligation is measured on the basis of actuarial valuation using Projected unit credit
method and Remeasurement gains/ losses are recognised in P&L in the period in which they
arise.
Share based payment transaction

The stock options of the Parent Group, granted to employees pursuant to the Group’s Stock
Options Schemes, are measured at the fair value of the options at the grant date as per Black
and Scholes model. The fair value of the options is treated as discount and accounted as
employee compensation cost, with a corresponding increase in other equity, over the vesting
period on a straight line basis. The amount recognised as expense in each year is arrived at
based on the number of grants expected to vest. If a grant lapses after the vesting period, the
cumulative discount recognised as expense, with a corresponding increase in other equity, in
respect of such grant is transferred to the General reserve within other equity
xvii. Foreign currency transactions

Transactions in currencies other than the Group's functional currency are recorded on initial
recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign
currency monetary items are reported at the rates prevailing at the year end. Non-monetary
items that are measured in terms of historical cost in foreign currency are not retranslated.
Functional currency of the Group and foreign operations has been determined based on the
primary economic environment in which the Company and its foreign operations operate
considering the currency in which funds are generated, spent and retained.
Exchange differences that arise on settlement of monetary items or on reporting of monetary
items at each Balance Sheet date at the closing spot rate are recognised in the Statement of
Profit and Loss in the period in which they arise.
xviii. Operating Segments

The Group’s main business is financing by way of loans for retail and corporate borrowers
in India. The Group's operating segments consist of “Financing Activity”, “Investment Activity”
and “Others”. All other activities of the Group revolve around the main businesses. This in
the context of Ind AS 108 - operating segments reporting are considered to constitute
reportable segment. The Chief Operating Decision Maker (CODM) of the Group is the Board
of Directors along with Managing Director. Operating segment disclosures are consistent with
the information reviewed by the CODM.
115
An operating segment is a component of the Group that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the Group’s other components, and for which discrete financial
information is available. Accordingly, all operating segment's operating results of the Group
are reviewed regularly by the Board of Directors to make decisions about resources to be
allocated to the segments and assess their performance.
The “Financing Activity” segment consists of asset financing, term loans (corporate and retail),
channel financing, credit substitutes, investments linked to/arising out of lending business
and bill discounting. The “Investment Activity” segment includes corporate investments and
“Others” segment primarily includes advisory services, wealth management, distribution of
financial products and leasing.
Revenue and expense directly attributable to segments are reported under each operating
segment. Expenses not directly identifiable to each of the segments have been allocated
to each segment on the basis of associated revenue/expense of each segment. All other
expenses which are not attributable or allocable to segments have been disclosed as un-
allocable expenses.
Assets and liabilities that are directly attributable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as un-allocable.
xix. Investments in associates

The Group has elected to measure investment in associate at cost as per Ind AS 27 -
Separate Financial Statements, accordingly measurement at fair value through statement of
profit and loss account and related disclosure under Ind AS 109 does not apply.
xx. Earnings per share

Basic earnings per share has been computed by dividing net income attributable to owners of
the Group by the weighted average number of shares outstanding during the year. Partly paid
up equity share is included as fully paid equivalent according to the fraction paid up.
Diluted earnings per share has been computed using the weighted average number of shares
and dilutive potential shares, except where the result would be anti-dilutive.
xxi. Taxation
Income Tax
Income tax expense comprises current and deferred taxes. Income tax expense is recognized
in the Statement of Profit and Loss, other comprehensive income or directly in equity when
they relate to items that are recognized in the respective line items.
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to the tax payable or receivable in respect of previous years.
The amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to income taxes. It is measured using
tax rates (and tax law) enacted or substantively enacted by the reporting date.
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off
the recognised amounts and it is intended to realise the asset and settle the liability on a net
basis or simultaneously.
Deferred Tax
Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carry-forwards and
tax credits. Deferred tax assets are recognised to the extent that it is probable that future
116
taxable profit will be available against which the deductible temporary differences,
unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.
The carrying amount of deferred tax assets are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to
apply in the period when the asset is realised or the liability is settled, based on tax rates and
tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by
the same taxation authority and the Group intends to settle its current tax assets and liabilities
on a net basis.
xxii. Goods and Services Input Tax Credit

Goods and Services Input tax credit is accounted for in the books in the period in which the
supply of goods or service received is accounted and when there is no uncertainty in availing/
utilising the credits.
xxiii. Provisions, contingent liabilities and contingent assets

Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as
a result of past events, and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. When the effect of the time value of money is material, the Group
determines the level of provision by discounting the expected cash flows at a pre-tax rate
reflecting the current rates specific to the liability. The expense relating to any provision is
presented in the Statement of Profit and Loss net of any reimbursement.
Contingent assets/liabilities
A possible obligation that arises from past events and 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 or; present obligation that arises from past events where it
is not probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; or the amount of the obligation cannot be measured with sufficient
reliability are disclosed as contingent liability and not provided for. Contingent assets are
disclosed where an inflow of economic benefits is probable. Contingent assets are not
recognised in the consolidated financial statements.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet
date.
Where the unavoidable costs of meeting the obligations under the contract exceed the
economic benefits expected to be received under such contract, the present obligation under
the contract is recognised and measured as a provision
xxiv. Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as
follows:
(a) estimated amount of contracts remaining to be executed on capital account and not
provided for;
(b) uncalled liability on shares and other investments partly paid;
(c) funding related commitment to associate; and
117
(d) other non-cancellable commitments, if any, to the extent they are considered material
and relevant in the opinion of management.
(e) other commitments related to sales/procurements made in the normal course of business
are not disclosed to avoid excessive details.
(f) commitments under Loan agreement to disburse Loans.
(g) lease agreements entered but not executed.
xxv. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing
and financing activities. Cash flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:
(a) changes during the period in operating receivables and payables transactions of a non-
cash nature;
(b) non-cash items such as depreciation, Impairment, deferred taxes, unrealised foreign
currency gains and losses, and undistributed profits of associates and joint ventures; and
(c) all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows
exclude items which are not available for general use as on the date of Balance Sheet.
xxvi. Dividend payable

Interim dividend declared to equity shareholders, if any, is recognised as liability in the period
in which the said dividend has been declared by the Board of Directors. Final dividend
declared, if any, is recognised in the period in which the said dividend has been approved by
the Shareholders.
The dividend payable is recognised as a liability with a corresponding amount recognised
directly in equity.
xxvii. Recent amendments

The following standards / amendments to standards have been issued and will be
effective from 1st April 2022. The Group is evaluating the requirements of these standards,
improvements and amendments and has not yet determined the impact on the financial
statements.
(a) Indian Accounting Standard (Ind AS) 103 – Business Combinations – Qualifications
prescribed for recognition of the identifiable assets acquired and liabilities assumed,
as part of applying the acquisition method – should meet the definition of assets and
liabilities in the Conceptual Framework for Financial Reporting under Ind AS (Conceptual
Framework) issued by the ICAI at the acquisition date.
(b) Indian Accounting Standard (Ind AS) 109 – Financial Instruments – Modification in
accounting treatment of certain costs incurred on derecognition of financial liabilities.
(c) Indian Accounting Standard (Ind AS) 16 - Property, Plant and Equipment – Modification
in treatment of excess of net sale proceeds of items produced over the cost of testing as
part of cost of an item of property, plant, and equipment.
(d) Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and
Contingent Assets – Modifications in application of recognition and measurement
principles relating to onerous contracts.
118
Notes forming part of consolidated financial statements
NOTE “3” (` in lakh)

As at As at
CASH AND CASH EQUIVALENTS
March 31, 2022 March 31, 2021
At Amortised cost
Cash on hand 14 15
Balances with banks in current accounts 1,36,161 1,84,463
Cheques, drafts on hand 378 1,884
Balances with banks in deposit accounts (Refer note below) 71,609 16,329
Total 2,08,162 2,02,691
(i) As at March 31, 2022, the Group had undrawn committed borrowing facilities of ` 10,54,267 Lakh
(March 31, 2021 : ` 6,18,158 Lakh).
(ii) Balance with banks in deposit accounts comprises deposits that have an original maturity less than
3 months at balance sheet date.
As at As at
Bank balance other than (Note 3) above
March 31, 2022 March 31, 2021
At Amortised cost
Balances with banks in deposit accounts 5,270 2,288
Balances with Banks In earmarked accounts 150 84
Total 5,420 2,372
(i) Balance with banks in deposit accounts comprises deposits that have an original maturity exceeding
3 months at balance sheet date.
(ii) Deposits includes lien with Banks and Stock Exchanges as margin amounting to ` 63 lakhs (March
31, 2021: ` 63 lakh).
(iii) Deposits amounting to ` 50 lakh (March 31, 2021 : ` 50 lakh) pertain to collateral deposits with
banks for Aadhaar authentication.
NOTE “5”
Derivative financial instruments
As at March 31, 2022 (` in lakh)
Notional Notional Notional Fair value Fair value
Derivatives held for hedging and
value - USD value - JPY value INR assets liabilities
risk management purposes
(in mn) (in mn) (in lakh)
Foreign exchange forward 255 17,677 3,01,666 59 33,580
Interest rate swap - - - 899 427
Cross currency interest rate swap 140 - 1,05,728 2,563 298
Total 395 17,677 4,07,394 3,521 34,305

Notional Notional Notional Fair value fair value
Derivatives held for hedging and
value - USD value - JPY value INR assets liabilities
risk management purposes
(in mn) (in mn) (in lakh)
Foreign exchange forward 192 17,806 2,58,316 33 15,134
Interest rate swap - - - - 3,154
Cross currency interest rate swap 90 - 65,907 1,121 1,304
Interest rate cap - - - - 1,963
Total 282 17,806 3,24,223 1,154 21,555
119
5.1 Disclosure of effects of hedge accounting on financial performance and exposure to foreign
currency
Notional Carrying Carrying Weighted Change in the fair
amount amount of amount of average value in the hedging
hedging hedging contract / instrument used as the
Particulars
instruments instruments strike price of basis for recognising
assets liabilities the hedging hedge ineffectiveness
instrument profit / (loss)
INR USD - Forward 1,89,982 59 4,578 79.96 (4,519)
exchange contracts
INR JPY - Forward 1,09,561 - 20,650 0.82 (20,650)
exchange contracts
INR USD - Currency Swaps 1,05,728 2,563 298 72.76 2,265

Notional Carrying Carrying Weighted Change in the fair
amount amount of amount of average value in the hedging
hedging hedging contract / instrument used as the
Particulars
instruments instruments strike price of basis for recognising
assets liabilities the hedging hedge ineffectiveness
instrument profit / (loss)
INR USD - Forward 1,40,531 33 1,465 79.16 (1,432)
exchange contracts
INR JPY - Forward 1,17,785 - 13,669 0.83 (13,669)
exchange contracts
INR USD - Currency Swaps 65,907 1,121 1,304 72.69 (183)
Hedged item

Change in the Cost of Cost of Foreign
value of hedged hedge hedging Currency
item used as reserve as as at Monetary
Particulars
the basis for at Items
recognising hedge Translation
ineffectiveness Reserve
FCY Term Loans (3,356) (35,303) - -

Change in the Cost of Cost of Foreign
value of hedged hedge hedging Currency
item used as reserve as as at Monetary
Particulars
the basis for at Items
recognising hedge Translation
ineffectiveness Reserve
FCY Term Loans (4,572) (22,267) - -
120
5.2 The impact of the cashflow hedges in the statement of profit and loss and other
comprehensive income
(` in lakh)
Hedging gains or (losses) Hedge ineffectiveness
recognised in other recognised in statement of
comprehensive income profit and (loss)
Particulars
For the year For the year For the year For the year
ended March ended March ended March ended March
31, 2022 31, 2021 31, 2022 31, 2021
Forward exchange contracts and (12,603) (18,203) - -
Currency swaps
5.3 Movements in the cost of hedge reserve are as follows:

(` in lakh)
Particulars ended March ended March
31, 2022 31, 2021
Opening Balance (2,420) (586)
Effective portion of changes in fair value Currency Swap 2,184 (1,967)
Effective portion of changes in fair value Interest rate risk 3,620 1,781
Effective portion of changes in fair value interest rate cap 80 12
Effective portion of changes in fair value foreign currency risk (16,086) (26,093)
Foreign currency translation differences on loan 1,441 10,027
Foreign currency translation differences on interest (435) (174)
Amortisation of forward premium 14,479 13,951
Tax on movements on reserves (1,361) 629
Closing Balance 1,502 (2,420)
All hedges are 100% effective i.e. there is no ineffectiveness.
5.4 Average fixed interest rate:

– Interest rate swap: 0.95% to 3.47%
– Cross currency swap: 6.12% to 7.81%
– Interest rate cap: 0.70%
The Group’s risk management strategy and how it is applied to manage risk is explained in
Note 44.
121

As at As at
RECEIVABLES
March 31, 2022 March 31, 2021
Trade receivables
At Amortised cost
(a) Receivables considered good - Secured 4 15
(b) Receivables considered good - Unsecured 3,115 2,646
(c) Receivables which have significant increase in credit risk 131 45
(d) Receivables - credit impaired 74 67
3,324 2,773
Impairment loss allowance (91) (110)
Total 3,233 2,663
Other receivables
At Amortised cost
(a) Receivables considered good - Secured - -
(b) Receivables considered good - Unsecured 32 17
32 17
Impairment loss allowance (10) (10)
22 7
Total 3,255 2,670
Trade receivables include amounts due from the related parties ` 274 lakh (March 31, 2021: ` 489 lakh)
Ageing of the Receivables: (` in lakh)

Particulars As at March 31, 2022 Total
Unbilled Not due Less 6 months 1-2 years 2-3 years More
Dues than 6 - 1 year than 3
months years
(i) U ndisputed Trade 2 - 3,101 16 - - - 3,119
receivables – considered
good
(ii) Undisputed Trade - - - - 57 11 63 131
Receivables – which have
significant increase in
credit risk
(iii) Undisputed Trade - - 7 - - 1 66 74
Receivables – credit
impaired
(iv) Disputed Trade - - - - - - - -
Receivables–considered
good
(v) Disputed Trade - - - - - - - -
credit risk
(vi) Disputed Trade - - - - - - - -
impaired
Total 2 - 3,108 16 57 12 129 3,324
Note: Ageing of the trade receivables is determined from the date of transaction till the reporting date.
122
(` in lakh)
Unbilled Not due Less 6 months 1-2 years 2-3 years More
Dues than 6 - 1 year than 3
months years
(i) U
ndisputed Trade 3 - 2,390 119 98 51 - 2,661
receivables – considered
good
(ii) U
ndisputed Trade - - - 13 15 17 - 45
credit risk
(iii) U
ndisputed Trade - - 1 - 1 - 65 67
impaired
(iv) D
isputed Trade - - - - - - - -
Receivables–considered
good
(v) D
credit risk
(vi) D
impaired
Total 3 - 2,391 132 114 68 65 2,773
Note: Ageing of the trade receivables is determined from the date of transaction till the reporting date.

As at As at
LOANS
March 31, 2022 March 31, 2021
(A)
(i) At Amortised Cost
- Bills purchased and bills discounted 2,37,005 1,18,666
- Term loans 85,89,925 71,40,384
- Credit substitutes (refer note (i) below) 3,01,972 1,96,522
- Finance lease and hire purchase 1,61,039 92,515
- Retained portion of assigned loans 2,422 3,448
Subtotal (i) 92,92,363 75,51,535
(ii) At Fair Value Through Other Comprehensive Income
- Term loans 36,777 85,514
Subtotal (ii) 36,777 85,514
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As at As at
LOANS
March 31, 2022 March 31, 2021
(iii) At Fair Value Through Profit and Loss
- Credit substitutes 2,519 1,000
Subtotal (iii) 2,519 1,000
Subtotal (i)+(ii)+(iii) 93,31,659 76,38,049
(B)
Less : Impairment loss allowance
- Stage I & II 1,72,055 1,30,352
- Stage III 1,26,234 1,26,558
Subtotal (i) 2,98,289 2,56,910
Loans net of impairment loss allowance 90,33,370 73,81,139
- Revenue received in advance (39,983) (31,826)
- Unamortised loan sourcing costs 18,749 13,322
Subtotal (i) (21,234) (18,504)
Total 90,12,136 73,62,635
(C)
- Secured by tangible assets 73,64,705 57,54,648
- Unsecured 19,66,954 18,83,401
- Revenue received in Advance (39,983) (31,826)
- Unamortised loan sourcing costs 18,749 13,322
Subtotal (i) 93,10,425 76,19,545
(D)
(i) Loans in India
- Public Sector 15,353 7,554
- Others 93,16,306 76,30,495
Subtotal (i) 93,31,659 76,38,049
(ii) Loans outside India
- Public Sector - -
- Others - -
Subtotal (ii) - -
(i) Investments in bonds, debentures and other financial instruments which, in substance, form a part
of the Group’s financing activities (“Credit Substitutes”) have been classified under Loans . In the
past these were classified as a part of Investments. Management believes that the classification
results in a better presentation of the substance of these investments and is in alignment with
regulatory filings.
(ii) Impairment allowance towards loan designated as FVTOCI amounting to ` Nil (as on March 31,
2021 : ` 18 lakh)
(iii) Impairment loss allowance includes impairment loss allowance on loans under fair value through
profit and loss ` 6 lakh (As on March 31, 2021 : ` 4 lakh)
(iv) Loans given to related parties as on March 31, 2021 ` 1,08,448 lakh (as on March 31, 2021 :
` 55,326 lakh).
124
(v) The details of Gross investments and unearned finance income in respect of assets given under
finance lease are as under:
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Gross Investments:
- Within one year 73,682 37,680
- Later than one year and not later than five years 89,795 51,217
- Later than five years 697 717
Total 1,64,174 89,614
Unearned Finance Income:
Total 25,854 15,221
Present Value of Rentals *:
Total 1,38,321 74,393
* Present Value of Rentals represent the Current Future Outstanding Principal.
As at As at
Investments
March 31, 2022 March 31, 2021
(A)
(i) At Amortised Cost
- Debt securities 2,35,056 1,22,273
Subtotal (i) 2,35,056 1,22,273
(ii) At Fair Value
(a) Through Other Comprehensive Income:
- Debt securities 16,152 6,575
Subtotal (i) 16,152 6,575
(b) Through Profit or Loss
- Mutual funds (quoted) 3,06,096 1,52,557
- Fully paid equity shares (quoted) 58,882 46,352
- Fully paid equity shares (unquoted) 28,121 26,279
- Preference shares 1,392 2,111
- Security receipts 17 90
- Venture capital fund 22,443 17,888
- Alternate investment fund 2,806 2,412
- Multi asset fund 4,850 3,581
- Structured product 2,193 2,210
Subtotal (ii) 4,26,800 2,53,480
Total (A) = (i)+(ii) 6,78,008 3,82,328
(B)
(i) Investments in India 6,26,240 3,43,535
(ii) Investments outside India 51,768 38,793
Total (B) (i)+(ii) 6,78,008 3,82,328
125
NOTE “8a” (` in lakh)

Face As at As at
value March 31, 2022 March 31, 2021
Script-wise details of Investments Per Unit No. of No. of
(in `) Units
` in lakh Units
` in lakh
(A) Investment in Debentures

(i) Quoted
(a) Carried at amortised cost
4.63% BPCL - Indian Cash Bond - 20,000 1,553 20,000 1,526
5.95% Tata Steel Bond - 10,000 779 10,000 762
5.75% Tata Motors Limited Bond - 30,000 2,407 50,000 3,865
2.88% ONGC - Indian Cash Bond - - - 3,750 276
4,739 6,429
(ii) Carried at fair value through other comprehensive income
5.95% Tata Steel Bond - 20,000 1,594 20,000 1,599
5.45% Tata Steel Bond - 40,000 3,145 20,000 1,526
5.38% ICICI Bank - 20,000 1,135 10,000 562
4.5% Jaguar Land Rover Bond - 50,000 3,463 30,000 2,138
5.75% Tata Motors Limited Bond - - - 10,000 750
5.5% Jaguar Land Rover Bond - 25,000 1,695 - -
5.88% Jaguar Land Rover Bond - 15,000 1,048 - -
3.7% HDFC Bank - 20,000 1,407 - -
5.25% UPLLIN Bond - 10,000 714 - -
5.95% Periama Holdings - 20,000 1,578 - -
5% Fairfax India Holdings - 5,000 373 - -
16,152 6,575
(B) Investment in Government Securities
(i) Carried at amortised cost
(a) Quoted
6.84% GOI 2022 100 2,00,00,000 20,788 2,00,00,000 21,348
6.18% GOI 2024 100 20,00,000 2,104 - -
8.15% GOI 2026 100 1,12,00,000 12,481 - -
8.35% GOI 2022 100 4,90,00,000 50,814 - -
7.17% GOI 2028 100 1,70,00,000 12,757 - -
8.97% GOI 2030 100 42,00,000 4,992 - -
7.61% GOI 2030 100 30,00,000 3,303 - -
6.79% GOI 2029 100 20,00,000 2,070 - -
8.24% GOI 2033 100 44,00,000 5,103 - -
126

Face As at As at
(in `) Units
` in lakh Units
` in lakh
7.35% GOI 2024 100 2,00,00,000 21,389 - -

8.20% GOI 2025 100 3,00,00,000 32,308 - -
1,68,109 21,348
(C) Investment in Treasury Bill
(i) Carried at amortised cost
(a) Quoted
364 DTB 22072021 100 - - 1,50,00,000 14,849
364 DTB 22072021 100 - - 1,50,00,000 14,849
364 DTB 28102021 100 - - 1,50,00,000 14,714
364 DTB 28102021 100 - - 2,00,00,000 14,715
91 DTB 06052021 100 - - 1,00,00,000 9,967
182 DTB 22042021 100 - - 2,00,00,000 19,962
364 DTB 22072021 100 - - 55,00,000 5,440
182DTB 28072022 100 1,55,00,000 15,295 - -
91 DTB 14042022 100 4,10,00,000 40,949 - -
364 DTB 05052022 100 15,00,000 1,495 - -
364 DTB 09062022 100 45,00,000 4,469 - -
62,208 94,496
(D) Investment in Mutual Funds
(i) At fair value through profit and loss
(a) Quoted
Aditya Birla Sun Life Liquid Fund - Reg - Growth 100 - - 1,36,65,705 45,001
Tata Liquid Fund Regular Plan-Dividend 1,000 3,163 32 9,921 99
Kotak Liquid Regular Plan Growth 1,000 4,67,496 20,004 10,86,813 45,003
Tata Overnight Fund Regular Plan - Growth 1,000 26,83,692 30,001 55,37,326 60,002
Tata Liquid Fund Regular Plan-Growth 1,000 76,298 2,543 76,036 2,452
Tata Ultrashort term Fund - Dir - Growth 10 8,39,87,066 10,000 - -
HSBC Cash Fund - Growth 1,000 2,37,364 5,001 - -
Nippon India Overnight Fund - Growth Plan 100 1,93,42,362 22,002 - -
Aditya Birla Sun Life Overnight - Reg - Growth 1,000 34,93,962 40,002 - -
UTI Overnight Fund - Reg - Growth 1,000 5,54,911 16,001 - -
Axis Overnight Fund - Reg - Growth 1,000 34,76,677 39,002 - -
127

Face As at As at
(in `) Units
` in lakh Units
` in lakh
HSBC Overnight Fund - Reg - Growth 1,000 8,12,830 9,000 - -

Kotak Overnight Fund - Reg - Growth 1,000 19,45,549 22,001 - -
Mirae Asset Overnight Fund - Reg - Growth 1,000 16,56,210 18,000 - -
Invesco India Liquid Fund Growth Plan 1,000 1,72,154 5,001 - -
SBI Overnight Fund - Growth 1,000 5,83,923 20,001 - -
ABSL Money Manager Fund Gr-Direct 100 33,45,316 10,000 - -
Tata Money Market Fund Direct Plan - Growth 1,000 4,70,680 18,005 - -
Nippon India Money Market Fund - Direct Growth 1,000 2,83,520 9,500 - -
Kotak Money Market Fund - Direct Plan - Growth 1,000 2,76,175 10,000 - -
3,06,096 1,52,557
(E) Investment in Equity Shares
(a) Quoted
Star Health & Allied Insurance Company Limited 10 72,15,165 51,260 72,15,165 34,800
The Indian Hotels Company Limited 1 19,600 47 17,640 20
Tata Steel Limited (fully paid) 10 17,561 230 16,740 136
Tata Steel BSL Limited 2 - - 12,315 6
Hindustan Unilever Limited 1 2,000 41 2,000 49
Shriram Properties Limited 10 15,16,413 1,179 - -
Praj Industries Limited 2 7,52,268 2,997 36,84,593 7,179
Commercial Engineers & Body Builders Company Limited 10 21,60,192 943 75,24,328 718
The New India Assurance Company Limited 5 10,83,376 1,210 10,83,376 1,672
Bombay Stock Exchange Limited 2 17,100 161 5,700 33
Future Consumer Limited 10 32,992 2 32,992 2
Diamond Power Infra Limited 10 16,31,881 25 16,31,881 -
3I Infotech Limited 10 15,19,007 778 2,32,80,000 1,734
Consolidated Construction Consortium Limited 2 4,16,472 9 4,16,472 3
IVRCL Limited 2 15,94,857 - 15,94,857 -
Gol Offshore Limited 10 6,44,609 - 6,44,609 -
58,882 46,352
128

Face As at As at
(in `) Units
` in lakh Units
` in lakh
(b) Unquoted
Biocon Biologics India Limited 10 88,30,456 23,660 88,30,456 22,590
International Asset Reconstruction Company Private Limited 10 1,39,46,295 4,461 1,39,46,295 3,689
Aricent Technologies Holdings Limited 10 8 - 8 -
Coastal Projects Limited 10 59,62,855 - 59,62,855 -
Vaultize Technologies Private Limited 1 84,568 - 84,568 -
28,121 26,279
(F) Investment in Preference Shares
(a) Unquoted
Vaultize Technologies Private Limited 10 3,15,21,679 - 3,15,21,679 -
- -
(G) Investment in Preferred Stock
(a) Quoted
Uber Technologies, Inc. - 51,664 1,392 52,880 2,111
1,392 2,111
(b) Unquoted
WaterHealth International, Inc USD 0.0001 30,90,871 - 30,90,871 -
Vanu Inc - 38,074 - 38,074 -
- -
Total Investment in Preference shares 1,392 2,111
(H) Investment in Venture Capital Fund
(a) Unquoted
Pitango Venture Capital Fund VI & VII, L.P. (“Pitnago VI”) - - 22,443 - 17,888
22,443 17,888
(I) Investment in Alternate Investment Funds
(a) Unquoted
Tata Absolute Return Fund 1,000 1,00,000 1,178 1,00,000 1,080
Tata Equity Plus Absolute Return Fund 1,000 1,00,000 1,628 1,00,000 1,332
2,806 2,412
129

Face As at As at
(in `) Units
` in lakh Units
` in lakh
(J) Investment in Multi Asset Fund

(a) Unquoted
Apollon Sustainable Value Fund - - 4,850 - 3,581
4,850 3,581
(K) Investment in structured product
(a) Unquoted
Julius Baer Long Leverage Certificate - 200 2,193 - 2,210
2,193 2,210
(L) Investment in Security Receipts
International Asset Reconstruction Private Limited 1,000 1,04,135 17 1,04,135 90
17 90
Total Investments 6,78,008 3,82,328
(A + B + C + D + E + F + G + H + I + J + K + L)

Other financials assets As at March 31, 2022 As at March 31, 2021
At Amortised Cost
Security deposits 3,013 1,923
Pass Through Certificate application money 10 6,060
(refundable)
Income accrued but not due 7,106 8,126
Advances to employees 2 28
Receivable on sale/redemption of investment 176 162
Provision for receivable on sale/redemption of
(162) 14 (162) -
investment
Receivable under letter of credit/buyers credit facility 12,680 37,255
Provision for letter of credit/buyer's credit facility (99) 12,581 (149) 37,106
Other receivables 2,333 4,227
Total 25,059 57,470
130
NOTE “10” Income Taxes

(i) Current tax assets (` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Advance tax and tax deducted at source (net of provision for tax 16,585 14,150
` 1,25,466 lakh (Previous year: ` 81,398)
Total 16,585 14,150
A. The income tax expense consist of the following: (` in lakh)

As at As at
Particulars
March 31, 2022 March 31, 2021
Current tax:
Current tax expense for the year 66,138 42,736
Current tax expense / (benefit) pertaining to prior years (438) 2
65,700 42,738
Deferred tax benefit
Origination and reversal of temporary differences (11,009) (5,705)
Total income tax expense recognised in the year 54,691 37,033
The reconciliation of estimated income tax expense at statutory income tax rate income tax
expense reported in statement of profit and loss is as follows:
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Profit / (Loss) before tax from continuing operations 2,34,772 1,61,497
Indian statutory income tax rate 25.168% 25.168%
Expected income tax expense 59,087 40,646
Tax effect of adjustments to reconcile expected income tax
expense to reported income tax expense:
Income exempt from tax (618) (348)
Recognition of previously unrecognised tax losses and unabsorbed (111) 263
depreciation
Non deductible expenses 2,156 4,398
Provision for loss disallowed in earlier years, allowed on realization - (3,604)
in the current year
Income not taxable - (2,914)
Tax on income at different rates (4,580) (342)
Tax incentives (368) (363)
Tax pertaining to prior years (213) -
Differences in tax rates in foreign jurisdictions (662) (703)
Total income tax expense 54,691 37,033
131
B. Amounts Recognised in Other Comprehensive Income (` in lakh)

Particulars Tax Tax

Before tax (expense)/ Net of tax Before tax (expense)/ Net of tax
benefit benefit
Items that will not be reclassified to profit or loss
Owners of the company
Remeasurement of the defined benefit plans (247) 62 (185) 1,584 (397) 1,187
Items that are or may be reclassified
subsequently to profit or loss
Debt instruments through Other Comprehensive (1,068) 182 (886) 117 (20) 97
Income
Fair value gain / (loss) on financial asset measured (1,056) 327 (729) 1,029 (302) 727
at FVTOCI
Net changes in fair values of time value of cash flow 5,283 (1,361) 3,922 (2,463) 629 (1,834)
hedges (FVTOCI)
Total Amounts recognised in OCI 2,912 (790) 2,122 267 (90) 177
(ii) Deferred tax assets

The major components of deferred tax assets and liabilities for the year ended March 31, 2022
are as follows:
(` in lakh)
Particulars Opening Recognised/ Recognised/ Recognised/ Closing
Balance reversed reclassified eversed Balance
through profit from other through
and loss comprehen- Reserves
sive income
Deferred Tax Assets :-
(a) Impairment loss allowance - Stage III 29,612 (1,254) - - 28,358
(b) Impairment loss allowance - Stage I & II 33,864 10,653 - - 44,517
(c) Employee benefits 525 16 - - 541
(d) Deferred income 7,805 1,396 - - 9,201
(e) Depreciation on property, plant & equipment 6,535 1,401 - - 7,936
(f) Fair valuation of associates and fund 127 432 - - 559
investments
(g) Right to use asset 542 10 - - 552
(h) Cash flow hedges 834 - (1,361) - (527)
(i) Other deferred tax assets 1,503 (2) 182 12 1,695
Deferred Tax Liabilities :- - -
(a) Debenture issue expenses (1,233) 223 - - (1,010)
(b) Investments measured at fair value (524) (223) - - (747)
(c) Loans measured at FTVOCI (424) (33) 327 - (130)
(d) Deduction u/s 36(1)(viii) (5,236) (1,610) - - (6,846)
Net Deferred Tax Asset 73,930 11,009 (852) 12 84,099
132
The major components of deferred tax assets and liabilities for the year ended March 31, 2021
are as follows:
(` in lakh)
Particulars Opening Recognised/ Recognised/ Recognised/ Closing
Balance reversed reclassified eversed Balance
through profit from other through
and loss comprehen- Reserves
sive income
(a) Impairment loss allowance - Stage III 25,118 4,494 - - 29,612
(b) Impairment loss allowance - Stage I & II 29,153 4,711 - - 33,864
(c) Employee benefits 565 (40) - - 525
(d) Deferred income 9,895 (2,090) - - 7,805
(e) Depreciation on property, plant & equipment 4,812 1,723 - - 6,535
(f) F
air valuation of associates and fund 1,778 (1,651) - - 127
investments
(g) Right to use asset 511 31 - - 542
(h) Cash flow hedges 205 - 629 - 834
(i) Other deferred tax assets 1,711 (188) (20) - 1,503
Deferred Tax Liabilities :- - -
(a) Debenture issue expenses (1,650) 417 - - (1,233)
(b) Investments measured at fair value (82) (442) - - (524)
(c) Loans measured at FTVOCI (122) - (302) - (424)
(d) Deduction u/s 36(1)(viii) (3,975) (1,261) - - (5,236)
Net Deferred Tax Asset 67,919 5,705 307 - 73,930
One of our subsidiary has not recognized net deferred tax assets as at March 31, 2022 on the following
item, since it is not probable that the economic benefits will flow in future years against which such
deferred tax assets can be realized.
(` in lakh)
As at March 31, 2022
Particulars Closing DTA @25.17% Closing DTA @27.82%
balance balance
Deferred Tax Asset (A)
On business losses as per Income Tax 2,518 634 2,444 615
On unabsorbed depreciation as per Income Tax 463 116 406 102
Provision for doubtful debts 71 18 66 17
Employee benefits - Leave encashment 16 4 12 3
On account of depreciation on fixed assets 93 23 83 21
Deferred Tax Liability (B) - - - -
Net Deferred Tax Asset (A-B) 3,161 795 3,011 758
The Subsidiary has business Losses as per Income Tax Act, 1961 of ` 1,117 lakh expiring in FY 2023-
24, ` 117 lakh expiring in FY 2028-29 and ` 1,285 lakh expiring in FY 2029-30 (PY ` 1,210 lakh expiring
in FY 2021-22, ` 1,117 lakh expiring in FY 2023-24 and ` 117 lakh expiring in FY 2028-29.
133
(iii) Current tax liabilities: (` in lakh)

As at As at
Particulars
March 31, 2022 March 31, 2021
Provision for tax (net of advance tax ` 148,956 Lakh (Previous 34,959 28,695
year : ` 159,053 Lakh)
Total 34,959 28,695
(iv) Unrecognised temporary differences: (` in lakh)

As at As at
Particulars
March 31, 2022 March 31, 2021
Temporary difference relating to investment in subsidiaries for
which deferred tax liabilities have not been recognised:
Undistributed reserves 10,65,590 8,53,010
Note:
Subsidiaries of Tata Capital Limited’s undistributed reserves which, if paid out as dividends, would be
subject to tax in the hands of recipient. An assessable temporary difference exists, but no deferred tax
liability has been recognized as Tata Capital Limited is able to control the timing of distribution from these
subsidiaries. These subsidiaries are not expected to distribute the dividend out of these reserves in the
foreseeable future. Also there are no plans to sell any of the subsidiaries in the foreseeable future and
hence no deferred tax liability has been created on the basis of capital gains tax.

As at As at
Investments accounted using equity method
March 31, 2022 March 31, 2021
At Cost
(A)
Associate companies
Fully paid equity shares (unquoted) 93,850 80,890
Preference shares (unquoted) 24,406 14,996
Less: Diminution in value of investments (11,648) (12,917)
1,06,608 82,969
(B)
(i) Investments in India 1,02,268 82,969
(ii) Investments outside India 4,340 -
Total (B) (i)+(ii) 1,06,608 82,969
134

Face As at As at
Script-wise details of Investments value March 31, 2022 March 31, 2021
accounted using equity method Per Unit No. of No. of
(in) Units
` in lakh Units
` in lakh
Unquoted
(a) Equity Shares
1 Tata Autocomp Systems Limited 10 4,83,07,333 45,874 4,83,07,333 34,879
2 Tata Play Limited (formerly Tata Sky Limited) 10 1,00,72,871 5,717 1,00,72,871 5,634
3 Tata Technologies Limited 10 18,73,253 10,682 18,73,253 8,769
4 Tata Projects Limited 10 36,71,821 6,247 44,810 3,997
5 Roots Corporation Limited 10 - - 22,91,454 2,062
6 Fincare Business Services Limited 1 25,47,910 848 25,47,910 849
7 Fincare Small Finance Bank 10 2,38,980 150 9,660 30
8 Shriram Properties Limited 10 - - 22,23,569 3,935
9 TVS Supply Chain Solutions Limited 1 14,54,880 808 1,45,488 756
10 Novalead Pharma Private Limited 100 11,477 2,282 11,477 2,281
11 Tema India Limited 10 19,85,524 4,204 19,85,524 4,253
12 Kapsons Industries Private Limited 10 2,857 1 2,857 1
13 Pluss Advanced Technologies Limited 10 - - 1,31,167 1,532
14 Vortex Engineering Private Limited 10 1,39,415 2,900 1,39,415 2,900
15 Sea6 Energy Private Limited 10 23,130 2,552 25,410 2,967
16 Alef Mobitech Solutions Private Limited 10 4,96,276 1,093 4,96,276 1,093
17 Indusface Private Limited 10 4,51,721 3,274 4,51,721 3,440
18 Linux Laboratories Private Limited 10 3,600 1,508 3,600 1,512
19 Cnergyis Infotech India Pvt Ltd 10 87,415 5,709 - -
20 Atulaya Healthcare Private Limited 10 100 1 - -
93,850 80,890
(b) Preference Shares
1 Lokmanaya Hospital Private Limited 100 24,63,600 2,464 24,63,600 2,464
2 Tema India Limited 10 30,00,000 300 30,00,000 300
3 Kapsons Industries Private Limited 10 1,71,42,857 6,000 1,71,42,857 6,000
4 Linux Laboratories Private Limited 1,000 8,400 3,500 8,400 3,500
5 Alef Mobitech Soluations Private Limited 10 5,34,840 1,712 5,34,840 1,712
6 Pluss Advanced Technologies Limited 10 - - 1,02,00,000 1,020
7 Cnergyis Infotech India Pvt Ltd 10 43,434 2,091 - -
8 Atulaya Healthcare Private Limited 10 3,67,044 3,999 - -
9 Deeptek Inc. USD 0.01 53,108 4,340 - -
24,406 14,996
Sub-total 1,18,256 95,886
Provision for diminution in value of investments (11,648) (12,917)
Total 1,06,608 82,969
135
NOTE “12”
Property, plant, equipment, Investment property and Intangible Assets (` in lakh)
Net
Gross Block Accumulated depreciation and amortisation Carrying
Value
Opening Closing Opening Closing
Particulars balance balance balance
Depreciation/
balance As at
Additions/ Written Amortisation Deletions/ Written
as at Deletions as at as at as at March 31,
Adjustments off for the Adjustments off
April 1, March April 1, March 2022
year*
2021 31, 2022 2021 31, 2022
TANGIBLE ASSETS
Buildings 12,828 - - - 12,828 2,575 652 - - 3,227 9,601
12,828 - - - 12,828 1,931 644 - - 2,575 10,253
Leasehold Improvements 3,150 579 40 - 3,689 1,837 380 24 - 2,193 1,496
3,291 112 176 77 3,150 1,587 423 173 - 1,837 1,313
Furniture & Fixtures 1,488 251 27 17 1,695 892 273 25 - 1,140 555
1,694 18 57 167 1,488 822 196 126 - 892 596
Computer Equipment 6,196 2,151 2 - 8,345 4,345 1,275 1 - 5,619 2,726
5,781 494 70 9 6,196 3,084 1,318 57 - 4,345 1,851
Office Equipment 1,496 366 22 - 1,840 1,064 244 15 - 1,293 547
1,703 62 100 169 1,496 963 298 197 - 1,064 432
Plant & Machinery 504 93 2 - 595 267 68 1 - 334 261
554 4 26 28 504 226 74 33 - 267 237
Vehicles 1,087 822 280 10 1,619 461 317 176 - 602 1,017
1,027 376 316 - 1,087 444 260 243 - 461 626
ASSETS GIVEN UNDER
OPERATING LEASE/RENTAL
Construction Equipment 10,096 - 1,477 51 8,568 7,164 970 1,264 - 6,870 1,698
15,683 - 5,587 - 10,096 10,314 1,594 4,744 - 7,164 941
Vehicles 3,990 - 114 - 3,876 2,526 320 87 - 2,759 1,117
3,937 1,339 1,271 15 3,990 2,852 396 722 - 2,526 1,464
Plant & Machinery 78,873 1,311 10,193 - 69,991 40,103 10,356 9,039 - 41,420 28,571
76,489 8,462 6,078 - 78,873 29,229 13,770 2,896 - 40,103 40,761
Computer Equipment 28,296 242 5,701 96 22,741 16,043 5,129 4,951 - 16,221 6,520
26,507 5,715 3,926 - 28,296 13,191 6,224 3,372 - 16,043 12,253
Furniture & Fixtures 931 - 542 - 389 713 98 495 - 316 73
1,310 - 379 - 931 767 254 308 - 713 218
Office Equipment's 2,754 - 147 121 2,486 1,953 529 244 - 2,238 248
2,856 - 102 - 2,754 1,322 697 66 - 1,953 801
Railway Wagons 15,010 - - - 15,010 10,832 2,572 - - 13,404 1,606
15,010 - - - 15,010 8,081 2,751 - - 10,832 4,178
Electrical Installation & 2,077 - 1,091 - 986 1,426 185 869 - 742 244
Equipment's 2,051 37 11 - 2,077 970 462 6 - 1,426 651
TANGIBLE ASSETS - TOTAL 1,68,776 5,815 19,638 295 1,54,658 92,201 23,368 17,191 - 98,378 56,280
1,70,721 16,619 18,099 465 1,68,776 75,783 29,361 12,943 - 92,201 76,575
INTANGIBLE ASSETS
(other than internally
generated)
Software 5,373 750 - - 6,123 2,663 946 - - 3,609 2,514
4,504 869 - - 5,373 1,733 927 - - 2,663 2,710
INTANGIBLE ASSETS - 5,373 750 - - 6,123 2,663 946 - - 3,609 2,514
TOTAL 4,504 869 - - 5,373 1,733 927 - - 2,663 2,710
Investment Property 2,605 - - - 2,605 477 112 - - 589 2,016
2,604 - - - 2,605 358 120 - - 477 2,127
Total 1,76,754 6,565 19,638 295 1,63,386 95,341 24,426 17,191 - 1,02,576 60,810
1,77,829 17,488 18,099 465 1,76,754 77,874 30,408 12,943 - 95,341 81,412
Note : 1. Figures in italics relate to March 31, 2021.
2. Fair value of investment property as on March 31, 2022 : ` 8,529 lakh, The fair value of the investment properties
has been determined by an external independent property valuer, having appropriate professional qualification and
experience in the location and category of property being valued.
3. *Total depreciation charged for the year in the Statement of Profit and Loss includes depreciation on Right to use
assets amounting to ` 3,161 lakh (Previous year : ` 3,030 lakh).
136
NOTE “12(i)”
Capital Work in Progress
Amount in CWIP for a period of
Particulars Less than 1-2 years 2-3 years More than Total
1 year 3 years
(i) Projects in progress 377 - - - 377
(ii) Projects temporarily suspended - - - - -
Total 377 - - - 377
CWIP Completion Schedule

To be completed in
1 year 3 years
Total 377 - - - 377

1 year 3 years
(i) Projects in progress - - - - -
Total - - - - -

To be completed in
1 year 3 years
(i) Projects in progress - - - - -
Total - - - - -
NOTE “12(ii)”
Intangible Assets Under Development
1 year 3 years
(i) Projects in progress 505 260 7 - 772
Total 505 260 7 - 772
137

To be completed in
1 year 3 years
Total 772 - - - 772

1 year 3 years
(i) Projects in progress 744 11 - - 755
Total 744 11 - - 755

To be completed in
1 year 3 years
(i) Projects in progress 507 248 - - 755
Total 507 248 - - 755
NOTE “12(iii)”
The Group has given assets under non-cancellable operating leases. The total of future
minimum lease payments that the group is committed to receive is:
(` in lakh)
As at As at
Lease Payments
March 31, 2022 March 31, 2021
Within one year 19,466 28,842
Later than one year and not later than five years 22,720 39,900
Later than five years 2,194 1,659
Total 44,380 70,401
Accumulated Depreciation on lease assets is ` 83,970 lakh (Year ended March, 31, 2021 : ` 80,760 lakh).
Accumulated Impairment losses on the leased assets ` Nil (Year ended March, 31, 2021 ` Nil)
As at As at
Other Non-Financial Assets
March 31, 2022 March 31, 2021
At Amortised cost
Capital advances 100 3,047
Prepaid expenses 1,951 1,876
Gratuity asset (net) 933 1,298
Balances with government authorities 18,384 11,937
Assets held-for-sale 3,055 3,056
Less : Provision for receivable on sale/redemption of investment (3,055) (3,056)
Rental income accrued 196 197
Other advances 1,119 1,403
Total 22,683 19,758
138
NOTE “14”
Trade Payables
(i) Total outstanding dues of creditors other than micro enterprises and small enterprises
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
At Amortised cost
Trade payables
Accrued expenses 53,260 39,333
Payable to dealers/vendors 48,045 31,797
Payable to related parties 50 8,977
Due to others 1,039 756
Total 1,02,394 80,863
Note - The information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent such parties have been identified on
the basis of information available with the Group. The amount of principal and interest outstanding
during the year is given below :
(ii) Total outstanding dues of micro enterprises and small enterprises

(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
The principal amount and the interest due thereon remaining 198 111
unpaid to any supplier as at the end of each accounting year
The amount of interest paid by the buyer in terms of section - -
16, of the Micro Small and Medium Enterprise Development
Act, 2006 along with the amounts of the payment made
to the supplier beyond the appointed day during each
accounting year
The amount of interest due and payable for the period of - -
delay in making payment (which have been paid but beyond
the appointed day during the year) but without adding the
interest specified under Micro Small and Medium Enterprise
Development Act, 2006.
The amount of interest accrued and remaining unpaid at the 5 -
end of each accounting year;
The amount of further interest remaining due and payable - -
even in the succeeding years, until such date when the
interest dues as above are actually paid to the small
enterprise for the purpose of disallowance as a deductible
expenditure under section 23 of the Micro Small and Medium
Enterprise Development Act, 2006
Total 203 111
139

Particulars Unbilled Not Less 1-2 2-3 More Total
Dues Due than 1 years years than 3
year years
(i) MSME - - 203 - - - 203
(ii) Others 47,999 35,217 17,563 846 179 590 1,02,394
(iii) Disputed dues – MSME - - - - - - -
(iv) Disputed dues - Others - - - - - - -
Total 47,999 35,217 17,766 846 179 590 1,02,597
Note: Ageing of the trade payables is determined from the date of transaction till the reporting date.
Particulars Unbilled Not Less 1-2 2-3 More Total
Dues Due than 1 years years than 3
year years
(i) MSME - - 111 - - - 111
(ii) Others 43,023 22,271 15,037 3 102 427 80,863
(iii) Disputed dues – MSME - - - - - - -
(iv) Disputed dues - Others - - - - - - -
Total 43,023 22,271 15,148 3 102 427 80,974

As at As at
Debt securities
March 31, 2022 March 31, 2021
(A)
At Amortised Cost
Secured
- Privately Placed Non-Convertible Debentures (Refer 24,78,603 18,17,705
note 15.1 and 15.6 below)
- Public issue of Non-Convertible Debentures (Refer note 5,61,177 7,13,156
15.2 and 15.7 below)
Unsecured
- Privately Placed Non-Convertible Debentures (Refer 3,70,636 2,84,591
note 15.8 below)
- Commercial paper [Net of unamortised discount of 6,58,724 3,77,923
` 12,819 lakh (March 31, 2021 : ` 6,572 lakh)]
Total 40,69,140 31,93,375
(B)
(i) Debt securities in India 40,69,140 31,93,375
(ii) Debt securities outside India - -
Total 40,69,140 31,93,375
Note:
15.1 Privately Placed Non-Convertible Debentures are secured by pari passu charge on the specific
immovable property, specified receivables arising out of loan, lease, hire purchase transactions and
to the extent of shortfall in asset cover by a pari passu charge on the current assets of the Group.
140
Trade advances & bill discounting facility extended to borrower and sundry debtors and other
current assets of the Group.
15.2 Public issue of Non-Convertible Debentures are secured by a pari passu charge on the specific
immovable property, receivables against unsecured loans, bills discounted and trade advances and
other current assets of the Group.
15.3 Discount on commercial paper varies between 4.05% to 5.25% (March 31, 2021 : 3.55 % to 5.90%)
and are repayable at maturity ranging between 7 days and 12 months from the date of respective
commercial paper.
15.4 Debt securities held by related parties as on March 31, 2022 is ` 58,080 lakh
15.5 No default has been made in repayment of debt securities for the year ended March 31, 2022 and
March 31, 2021
15.6 Particulars of Privately Placed Secured Non-Convertible Debentures (“NCDs”) outstanding as on
March 31, 2022
As at March 31, 2022* As at March 31, 2021*

Redemption
Description of NCDs Issue Date Number of Number of
Date ` in lakh ` in lakh
NCDs NCDs
TCHFL NCD “A” FY 2016-17 12-Apr-16 12-Apr-21 - - 1,200 12,000
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 27-Feb-19 14-Apr-21 - - 1,175 11,750
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 12-Mar-19 14-Apr-21 - - 385 3,850
Reissuance 1
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 29-Mar-19 14-Apr-21 - - 260 2,600
Reissuance 2
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 26-Apr-19 14-Apr-21 - - 60 600
Reissuance 3
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 07-Jun-19 14-Apr-21 - - 425 4,250
Reissuance 4
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 28-Jun-19 14-Apr-21 - - 100 1,000
Reissuance 5
TCFSL Market Linked ‘A’ 2018-19 Tranche-II 13-Sep-19 14-Apr-21 - - 465 4,650
Reissuance 6
TCFSL NCD ‘G’ FY 2016-17 30-May-16 28-May-21 - - 500 5,000
TCFSL NCD “E” FY 2019-20 Option - II 04-Jun-19 04-Jun-21 - - 1,080 10,800
TCHFL NCD “B” FY 2019-20 27-May-19 02-Jul-21 - - 500 5,000
TCHFL NCD “K” FY 2016-17 05-Jul-16 05-Jul-21 - - 200 2,000
TCFSL Market Link NCD “A” FY 2019-20 02-Aug-19 02-Aug-21 - - 344 3,440
TCFSL NCD ‘C’ FY 2020-21 28-May-20 27-Aug-21 - - 3,750 37,500
TCFSL NCD ‘C’ FY 2020-21 Reissuance 1 on Par 17-Jun-20 27-Aug-21 - - 2,250 22,655
Premium
TCFSL NCD ‘G’ FY 2019-20 27-Sep-19 13-Sep-21 - - 500 5,000
TCHFL NCD “T’ FY 2016-17 15-Sep-16 15-Sep-21 - - 100 1,000
TCHFL Market Link NCD B 2019-20 30-Sep-19 30-Sep-21 - - 614 614
TCCL NCD ‘B’ FY 2016-17 17-Oct-16 15-Oct-21 - - 150 1,500
TCFSL NCD ‘E’ FY 2018-19 26-Oct-18 26-Oct-21 - - 3,262 32,620
TCFSL NCD “AG” FY 2016-17 28-Dec-16 28-Dec-21 - - 2,720 27,200
TCFSL NCD ‘E’ FY 2020-21 25-Jun-20 28-Dec-21 - - 1,850 18,500
TCHFL NCD “W” FY 2016-17 28-Dec-16 28-Dec-21 - - 4,080 40,800
TCFSL NCD “K” FY 2017-18 16-Aug-17 14-Jan-22 - - 750 7,500
141

Redemption
NCDs NCDs
TCFSL NCD “M” FY 2018-19 21-Feb-19 21-Feb-22 - - 500 5,000
TCFSL NCD “I” FY 2017-18 20-Jul-17 28-Feb-22 - - 750 7,500
TCHFL NCD “D” FY 2019-20 19-Aug-19 11-Mar-22 - - 1,000 10,000
TCFSL NCD “N” FY 2018-19 - Option II 27-Mar-19 25-Mar-22 - - 2,825 28,250
TCFSL NCD “AL” FY 2016-17 31-Mar-17 31-Mar-22 - - 400 4,000
TCFSL NCD ‘D’ FY 2018-19 22-Oct-18 08-Apr-22 1,120 11,200 1,120 11,200
TCFSL NCD ‘D’ FY 2018-19 Further issue Annual 23-Jan-19 08-Apr-22 485 4,850 485 4,850
Compounding Premium
TCHFL NCD “C” FY 2018-19 07-Dec-18 13-Apr-22 993 9,930 993 9,930
TCHFL C Series FY 18-19 Reissue 09-Jan-19 13-Apr-22 700 7,000 700 7,000
TCHFL NCD “C” FY 2018-19 reissuance 2 25-Apr-19 13-Apr-22 1,250 12,500 1,250 12,500
TCFSL Market Linked ‘A’ 2018-19 Tranche-III 27-Feb-19 14-Apr-22 137 1,370 137 1,370
TCFSL Market Linked ‘A’ 2018-19 Tranche-III 12-Mar-19 14-Apr-22 159 1,590 159 1,590
Reissuance 1
TCFSL Market Linked ‘A’ 2018-19 Tranche-III 26-Apr-19 14-Apr-22 100 1,000 100 1,000
Reissuance 2
TCFSL Market Linked ‘A’ 2018-19 Tranche-III 07-Jun-19 14-Apr-22 175 1,750 175 1,750
Reissuance 3
TCFSL Market Linked ‘A’ 2018-19 Tranche-III 05-Feb-20 14-Apr-22 200 2,000 200 2,000
Reissuance 4
TCFSL Market Linked NCD “A” Series 2018-19 19-Aug-20 14-Apr-22 330 3,300 330 3,300
Tranche III Reissuance 5
TCFSL NCD “A” FY 2019-20 25-Apr-19 25-Apr-22 500 5,000 500 5,000
TCFSL NCD ‘J’ FY 2019-20 30-Jan-20 29-Apr-22 2,000 20,000 2,000 20,000
TCHFL NCD G FY 2012-13 18-May-12 18-May-22 100 1,000 100 1,000
TCFSL NCD “I” FY 2018-19 03-Jan-19 10-Jun-22 400 4,000 400 4,000
TCFSL NCD ‘I’ FY 2018-19 Reissuance no 1 27-Sep-19 10-Jun-22 100 1,000 100 1,000
TCFSL NCD ‘I’ FY 2019-20 10-Dec-19 10-Jun-22 250 2,500 250 2,500
TCCL NCD ‘B’ FY 2020-21 23-Jun-20 23-Jun-22 650 6,500 650 6,500
TCHFL NCD “C” FY 2019-20 04-Jul-19 04-Jul-22 250 2,500 250 2,500
TCFSL NCD ‘B’ FY 2019-20 14-May-19 06-Jul-22 210 2,100 210 2,100
TCFSL NCD ‘B’ FY 2019-20 Reissuance 1 on Par 23-Feb-21 06-Jul-22 2,000 24,174 2,000 24,174
Premium
TCHFL NCD “X” FY 2015-16 29-Jul-15 29-Jul-22 750 7,500 750 7,500
TCHFL Market Link NCD “A” 2019-20 22-Aug-19 22-Aug-22 990 990 990 990
TCFSL NCD ‘AH’ FY 2012-13 05-Sep-12 05-Sep-22 500 5,000 500 5,000
TCFSL NCD ‘D’ FY 2020-21 17-Jun-20 23-Sep-22 1,500 15,000 1,500 15,000
TCFSL NCD ‘D’ FY 2020-21 Premium Reissuance 1 27-Aug-20 23-Sep-22 4,000 40,000 4,000 40,000
TCHFL NCD “G” FY 2019-20 Reissurance 04-Sep-20 25-Oct-22 3,000 30,000 3,000 30,000
TCHFL NCD “G” FY 2019-20 11-Dec-19 25-Oct-22 150 1,500 150 1,500
TCFSL NCD ‘H’ FY 2020-21 01-Dec-20 01-Dec-22 4,000 40,000 4,000 40,000
TCHFL NCD “E” FY 2020-21 - Option I 03-Dec-20 02-Dec-22 1,000 10,000 1,000 10,000
TCFSL Market Link NCD Tranche “B” FY 2018-19 20-Mar-19 05-Dec-22 2,500 25,000 2,500 25,000
TCFSL Market Linked Tranche ‘B’ 2018-19 20-Sep-19 05-Dec-22 50 500 50 500
Reissuance 1
142

Redemption
NCDs NCDs
TCHFL NCD Q FY 2012-13 28-Dec-12 29-Dec-22 100 1,000 100 1,000
TCHFL NCD “AP” FY 2015-16 - Option I 12-Jan-16 12-Jan-23 150 1,500 150 1,500
TCHFL NCD R FY 2012-13 18-Jan-13 18-Jan-23 150 1,500 150 1,500
TCFSL NCD “P” FY 2017-18 22-Jan-18 20-Jan-23 480 4,800 480 4,800
TCFSL NCD “P” FY 2017-18 Reissuance no 1 12-Feb-20 20-Jan-23 1,250 12,500 1,250 12,500
TCCL MLD “A” FY 2019-20 31-May-19 30-Jan-23 729 729 729 729
TCCL MLD “A” 2019-20 Reissuance 1 10-Jun-19 30-Jan-23 278 278 278 278
TCCL MLD “A” 2019-20 Reissuance 2 19-Jun-19 30-Jan-23 321 321 321 321
TCCL MLD “A” 2019-20 Reissuance 3 20-Sep-19 30-Jan-23 1,502 1,502 1,502 1,502
TCCL MLD “A” 2019-20 Reissuance 4 03-Oct-19 30-Jan-23 1,054 1,054 1,054 1,054
TCCL MLD “A” 2019-20 Reissuance 5 10-Dec-19 30-Jan-23 1,000 1,000 1,000 1,000
TCCL MLD “A” 2019-20 Reissuance 6 23-Dec-19 30-Jan-23 1,300 1,300 1,300 1,300
TCCL NCD ‘D’ FY 2019-20 17-Feb-20 17-Feb-23 2,000 20,000 2,000 20,000
TCFSL NCD ‘F’ FY 2021-22 06-Sep-21 28-Feb-23 7,000 70,000 - -
TCHFL NCD U FY 2012-13 12-Mar-13 10-Mar-23 100 1,000 100 1,000
TCFSL NCD ‘J’ FY 2020-21 17-Mar-21 17-Mar-23 3,000 30,000 3,000 30,000
TCFSL NCD ‘J’ FY 2020-21 Premium Reissuance 1 24-Aug-21 17-Mar-23 3,000 30,000 - -
TCHFL NCD “F” FY 2021-22 20-Oct-21 29-Mar-23 3,000 30,000 - -
TCFSL NCD ‘A’ FY 2021-22 15-Apr-21 14-Apr-23 3,600 36,000 - -
TCFSL NCD “B” FY 2020-21 - Option I 29-Apr-20 28-Apr-23 750 7,500 750 7,500
TCHFL NCD “E” FY 2016-17 04-May-16 04-May-23 200 2,000 200 2,000
TCFSL NCD ‘A’ FY 2020-21 21-Apr-20 19-May-23 9,250 92,500 9,250 92,500
TCCL NCD “C” FY 2021-22 19-May-21 19-May-23 3,000 30,000 - -
TCHFL NCD “B” FY 2020-21 26-May-20 26-May-23 4,500 45,000 4,500 45,000
TCFSL NCD ‘F’ FY 2020-21 14-Jul-20 14-Jul-23 500 5,000 500 5,000
TCFSL NCD ‘F’ FY 2020-21 Discount Reissuance 1 20-Jul-20 14-Jul-23 3,500 35,000 3,500 35,000
TCFSL NCD ‘C’ FY 2021-22 15-Jul-21 14-Jul-23 2,100 21,000 - -
TCFSL NCD ‘C’ FY 2021-22 Reissuance 1 on ZCB 02-Aug-21 14-Jul-23 2,000 20,000 - -
Discounting
TCCL MLD “A” 2020-20 20-Jul-20 20-Jul-23 7,500 7,500 7,500 7,500
TCHFL NCD “C” FY 2020-21 27-Jul-20 27-Jul-23 2,500 25,000 2,500 25,000
TCFSL NCD ‘G’ FY 2020-21 28-Jul-20 28-Jul-23 1,250 12,500 1,250 12,500
TCHFL NCD “A” FY 2020-21 12-May-20 11-Aug-23 5,000 50,000 5,000 50,000
TCHFL NCD “F” FY 2020-21 31-Dec-20 23-Nov-23 3,000 30,000 3,000 30,000
TCHFL NCD “H” FY 2021-22 23-Nov-21 23-Nov-23 1,750 17,500 - -
TCFSL NCD ‘I’ FY 2020-21 31-Dec-20 30-Nov-23 10,000 1,00,000 10,000 1,00,000
TCCL NCD ‘C’ FY 2020-21 31-Dec-20 30-Nov-23 2,000 20,000 2,000 20,000
TCHFL NCD “E” FY 2020-21 - Option II 03-Dec-20 01-Dec-23 3,000 30,000 3,000 30,000
TCCL NCD ‘B’ FY 2018-19 18-Dec-18 18-Dec-23 1,200 12,000 1,800 18,000
TCFSL NCD “H” FY 2018-19 - Option I 19-Dec-18 19-Dec-23 1,940 19,400 1,940 19,400
TCFSL NCD “H” FY 2018-19 - Option I - 1 03-Jan-19 19-Dec-23 975 9,750 975 9,750
Reissuance on Premium
TCFSL NCD “H” FY 2018-19 - Option I - 2 15-Feb-19 19-Dec-23 300 3,000 300 3,000
143

Redemption
NCDs NCDs
TCFSL NCD “H” FY 2018-19 - Option II - 2 15-Feb-19 19-Dec-23 550 5,500 550 5,500
TCFSL NCD ‘G’ FY 2021-22 06-Sep-21 29-Dec-23 1,000 10,000 - -
TCHFL NCD “AP” FY 2015-16 - Option II 12-Jan-16 12-Jan-24 150 1,500 150 1,500
TCHFL NCD “D” FY 2020-21 27-Oct-20 24-Jan-24 2,000 20,000 2,000 20,000
TCHFL NCD “J” FY 2021-22 01-Feb-22 31-Jan-24 2,000 20,000 - -
TCHFL NCD “L” FY 2021-22 23-Feb-22 23-Feb-24 5,500 55,000 -
TCHFL NCD “H” FY 2020-21 25-Mar-21 25-Mar-24 2,500 25,000 2,500 25,000
TCFSL NCD ‘K’ FY 2020-21 30-Mar-21 29-Mar-24 4,250 42,500 4,250 42,500
TCFSL NCD ‘B’ FY 2021-22 10-May-21 10-May-24 5,000 50,000 - -
TCHFL NCD “A” FY 2021-22 18-May-21 17-May-24 2,600 26,000 - -
TCFSL NCD “D” FY 2019-20 27-May-19 27-May-24 2,180 21,800 2,180 21,800
TCCL NCD ‘C’ FY 2017-18 02-Jun-17 03-Jun-24 100 1,000 100 1,000
TCFSL NCD “F” FY 2019-20 Option - II 20-Jun-19 20-Jun-24 885 8,850 885 8,850
TCFSL NCD ‘F’ FY 2019-20 Op-II Reissuance 1 10-Jul-19 20-Jun-24 1,000 10,000 1,000 10,000
TCHFL NCD “D” FY 2021-22 20-Jul-21 19-Jul-24 1,850 18,500 - -
TCCL NCD “B” FY 2021-22 28-Jul-21 26-Jul-24 3,600 36,000 - -
TCFSL NCD ‘D’ FY 2021-22 02-Aug-21 02-Aug-24 2,000 20,000 - -
TCHFL NCD “E” FY 2021-22 15-Sep-21 13-Sep-24 5,000 50,000 - -
TCHFL NCD “C” FY 2021-22 23-Jun-21 23-Sep-24 1,350 13,500 - -
TCHFL NCD “C” FY 2021-22 - Reissue No. 1 08-Sep-21 23-Sep-24 2,000 20,000 - -
TCFSL NCD ‘E’ FY 2021-22 06-Aug-21 04-Oct-24 7,000 70,000 - -
TCFSL NCD ‘E’ FY 2021-22 Premium Reissuance 1 24-Aug-21 04-Oct-24 4,000 40,000 - -
at PAR
TCCL NCD “A” FY 2021-22 17-Nov-21 15-Nov-24 2,000 20,000 - -
TCFSL NCD AA FY 2014-15 20-Nov-14 20-Nov-24 950 9,500 950 9,500
TCCL NCD ‘C’ FY 2019-20 05-Dec-19 05-Dec-24 250 2,500 250 2,500
TCFSL NCD AF FY 2014-15-Option-I 08-Dec-14 08-Dec-24 600 6,000 600 6,000
TCFSL NCD AF FY 2014-15-Option-I 08-Dec-14 08-Dec-24 150 1,500 150 1,500
TCHFL NCD R FY 2014-15 09-Dec-14 09-Dec-24 2,000 20,000 2,000 20,000
TCHFL NCD “I” FY 2021-22 17-Dec-21 17-Dec-24 1,500 15,000 - -
TCFSL NCD “E” FY 2019-20 Option - I 04-Jun-19 15-Jan-25 300 3,000 300 3,000
TCFSL NCD “E” FY 2019-20 Option - I Reissuance 1 26-Feb-20 15-Jan-25 350 3,500 350 3,500
TCHFL NCD V FY 2014-15 23-Jan-15 23-Jan-25 1,500 15,000 1,500 15,000
TCFSL NCD “B” FY 2020-21 - Option II 29-Apr-20 29-Apr-25 400 4,000 400 4,000
TCHFL NCD “O” FY 2015-16 16-Jun-15 16-Jun-25 200 2,000 200 2,000
TCHFL NCD “AE” FY 2015-16 31-Aug-15 29-Aug-25 200 2,000 200 2,000
TCHFL NCD “AG” FY 2015-16 08-Oct-15 08-Oct-25 75 750 75 750
TCHFL NCD “AM” FY 2015-16 - Option I 06-Nov-15 06-Nov-25 350 3,500 350 3,500
TCHFL NCD “G” FY 2020-21 19-Jan-21 19-Jan-26 850 8,500 850 8,500
TCHFL NCD “AU” FY 2015-16 Option I 30-Mar-16 30-Mar-26 150 1,500 150 1,500
TCHFL NCD “B” FY 2021-22 15-Jun-21 15-Jun-26 1,700 17,000 - -
TCHFL NCD “J” FY 2016-17 30-Jun-16 30-Jun-26 100 1,000 100 1,000
144

Redemption
NCDs NCDs
TCCL NCD ‘A’ FY 2020-21 10-Jun-20 10-Sep-27 1,750 17,500 1,750 17,500
TCFSL NCD “H” FY 2018-19 - Option II 19-Dec-18 19-Dec-28 1,120 11,200 1,120 11,200
TCFSL NCD “H” FY 2018-19 - Option II - 1 03-Jan-19 19-Dec-28 230 2,300 230 2,300
TCFSL NCD “F” FY 2019-20 Option - I 20-Jun-19 20-Jun-29 2,730 27,300 2,730 27,300
TCFSL NCD ‘F’ FY 2019-20 Op-I Reissuance 1 19-Jul-19 20-Jun-29 1,000 10,000 1,000 10,000
TCCL NCD ‘A’ FY 2019-20 15-Jul-19 13-Jul-29 1,400 14,000 1,400 14,000
TCCL NCD ‘B’ FY 2019-20 16-Oct-19 16-Oct-29 600 6,000 600 6,000
TCFSL NCD ‘H’ FY 2019-20 06-Nov-19 06-Nov-29 1,000 10,000 1,000 10,000
TCHFL NCD “F” 2019-2020 18-Nov-19 16-Nov-29 10,000 1,00,000 10,000 1,00,000
TCFSL NCD ‘L’ FY 2019-20 06-Mar-20 06-Mar-30 10,000 1,00,000 10,000 1,00,000
TCFSL NCD ‘H’ FY 2021-22 29-Sep-21 29-Sep-31 950 9,500 - -
TCFSL NCD ‘H’ FY 2021-22 Discount Reissuance 1 03-Dec-21 29-Sep-31 2,190 21,900 - -
TCFSL NCD ‘H’ FY 2021-22 Discount Reissuance 2 16-Dec-21 29-Sep-31 500 5,000 - -
TCFSL NCD ‘H’ FY 2021-22 Discount Reissuance 3 29-Dec-21 29-Sep-31 850 8,500 - -
TCHFL NCD “G” FY 2021-22 09-Nov-21 07-Nov-31 3,030 30,300 - -
TCFSL NCD ‘I’ FY 2021-22 20-Jan-22 20-Jan-32 12,500 1,25,000 - -
TCHFL NCD “K” FY 2021-22 16-Feb-22 16-Feb-32 5,000 50,000 - -
Total 23,89,788 17,26,667
Add : Interest accrued on borrowing 1,01,006 87,471
Add : Unamortised premium 3,552 4,623
Total 1,04,558 92,094
Less : Unamortised discount (15,063) (5)
Less : Unamortised borrowing cost (680) (1,051)
Privately Placed Non-Convertible Debentures 24,78,603 18,17,705
*Coupon rate of “NCDs” outstanding as on March 31, 2022 varies from 4.67% to 9.85% (March 31, 2021 : 5.00% to 9.85%)
15.7 Particulars of Public issue of Secured Non-Convertible Debentures outstanding as on March 31,
2022:

Redemption
NCDs NCDs
TCFSL NCD Series I (2019) 27-Sep-18 27-Sep-21 - - 5,02,863 5,029
TCFSL NCD Series I (2019) 27-Sep-18 27-Sep-21 - - 1,41,77,673 1,41,777
SERIES I TRANCHE II – CATEGORY I & II. 26-Aug-19 26-Aug-22 9,66,134 9,661 9,66,134 9,661
SERIES I TRANCHE II – CATEGORY III & IV. 26-Aug-19 26-Aug-22 75,22,582 75,226 75,22,582 75,226
TCHFL NCD “Series I” FY 2019-20 14-Jan-20 14-Jan-23 2,99,345 2,993 2,99,345 2,993
TCHFL NCD “Series I” FY 2019-20 14-Jan-20 14-Jan-23 1,42,24,535 1,42,245 1,42,24,535 1,42,245
TCFSL NCD Series II (2019) 27-Sep-18 27-Sep-23 7,68,789 7,688 7,68,789 7,688
TCFSL NCD Series II (2019) 27-Sep-18 27-Sep-23 1,45,70,710 1,45,707 1,45,70,710 1,45,707
SERIES II TRANCHE II – CATEGORY I & II. 26-Aug-19 26-Aug-24 9,77,140 9,771 9,77,140 9,771
SERIES II TRANCHE II – CATEGORY III & IV. 26-Aug-19 26-Aug-24 34,09,175 34,092 34,09,175 34,092
TCHFL NCD “Series II” FY 2019-20 14-Jan-20 14-Jan-25 51,892 519 51,892 519
145

Redemption
NCDs NCDs
TCHFL NCD “Series II” FY 2019-20 14-Jan-20 14-Jan-25 5,41,471 5,415 5,41,471 5,415
TCHFL NCD “Series III” FY 2019-20 14-Jan-20 14-Jan-25 3,35,925 3,359 3,35,925 3,359
TCHFL NCD “Series III” FY 2019-20 14-Jan-20 14-Jan-25 23,48,032 23,480 23,48,032 23,480
SERIES III TRANCHE II – CATEGORY I & II. 26-Aug-19 26-Aug-27 9,24,814 9,248 9,24,814 9,248
SERIES III TRANCHE II – CATEGORY III & IV. 26-Aug-19 26-Aug-27 60,03,935 60,039 60,03,935 60,039
TCHFL NCD “Series IV” FY 2019-20 14-Jan-20 14-Jan-28 12,025 120 12,025 120
TCHFL NCD “Series IV” FY 2019-20 14-Jan-20 14-Jan-28 3,82,776 3,828 3,82,776 3,828
TCHFL NCD “Series V” FY 2019-20 14-Jan-20 14-Jan-28 1,17,900 1,179 1,17,900 1,179
TCHFL NCD “Series V” FY 2019-20 14-Jan-20 14-Jan-28 9,05,697 9,057 9,05,697 9,057
Total (A) 5,43,627 6,90,433
Add: Interest accrued on borrowing 20,199 26,779
Less: Unamortised borrowing cost (2,649) (4,056)
5,61,177 7,13,156
Note: Coupon rate of above outstanding as on March 31, 2022 varies from 7.92% to 8.90% (March 31, 2021 : 7.92% to 8.90%)
15.8 Particulars of Privately Placed unsecured non-convertible debentures (“NCDs”) outstanding as on

March 31, 2022:
Redemption
NCDs NCDs
TCL Unsecured NCD A FY 2019-20 29-Aug-19 27-Aug-21 750 - 750 7,500
TCL Unsecured NCD B FY 2019-20 Option I 03-Dec-19 03-Dec-21 3,000 - 3,000 30,000
TCL Unsecured NCD B FY 2019-20 Option II 20-Feb-20 03-Jun-22 250 2,500 250 2,500
Reissuance
TCL Unsecured NCD B FY 2019-20 Option II 03-Dec-19 03-Jun-22 3,750 37,500 3,750 37,500
TCL Unsecured NCD D FY 2019-20 20-Feb-20 21-Dec-22 3,000 30,000 3,000 30,000
TCL Unsecured NCD C FY 2019-20 Option II 07-Feb-20 13-Mar-23 1,250 12,500 1,250 12,500
TCL Unsecured NCD C FY 2019-20 Option I 07-Feb-20 28-Jun-23 1,250 12,500 1,250 12,500
TCL Unsecured NCD A FY 2020-21 Option II 04-Aug-20 04-Aug-23 3,000 30,000 3,000 30,000
TCL Unsecured NCD B FY 2020-21 Option I 25-Feb-21 28-Dec-23 3,000 30,000 3,000 30,000
TCL Unsecured NCD A FY 2021-22 18-Jan-22 16-Feb-24 4,000 40,000 4,000 -
TCL Unsecured NCD B FY 2020-21 Option II 25-Feb-21 30-Apr-24 1,000 10,000 1,000 10,000
TCL Unsecured NCD B FY 2020-21 Option II 22-Feb-22 30-Apr-24 3,000 30,000 3,000 -
Reissuance
TCL Unsecured NCD B FY 2021-22 Option I 22-Feb-22 28-Mar-25 3,000 30,000 3,000 -
TCL Unsecured NCD A FY 2020-21 Option I 04-Aug-20 04-Aug-25 2,050 20,500 2,050 20,500
TCFSL Unsecured NCD Partly paid “A” FY 19-Mar-19 17-Mar-34 4,720 47,200 3,540 35,400
2019-20
TCFSL Unsecured NCD Partly paid “A” FY 23-Mar-20 23-Mar-35 3,000 30,000 2,000 20,000
2018-19
Total (A) 3,62,700 2,78,400
Add : Unamortised Premium 156 33
Less: Unamortised borrowing cost (143) (204)
3,70,636 2,84,591
Note: Coupon rate of above outstanding as on March 31, 2022 varies from 6.49% to 9.22% (As on March 31,2021 : 6.70% to
9.22%)
146

As at As at
Borrowings (other than debt securities)
March 31, 2022 March 31, 2021
(A)
At Amortised Cost
(a) Term Loans
Secured
(i) From banks (Refer note 16.1 and 16.2 below) 23,85,844 17,85,777
(ii) From National Housing Bank (Refer note 16.3) 3,71,863 4,42,664
(iii) From others (Refer note 16.1) 2,47,219 64,588
(iv) From external commercial borrowing (Refer note 16.4) 4,34,796 3,41,099
(b) Loan repayable on demand
Secured
(i) From Banks
(a) Working capital demand loan (Refer note 16.5 3,44,223 4,38,252
below)
(b) Bank Overdraft (Refer note 16.5 below) 2 29
(c) Cash Credit (Refer note 16.5 below) 45 42
Unsecured
(i) From Banks
(a) Working capital demand loan (Refer note 16.5 80,000 50,000
below)
Total 38,63,992 31,22,451
(B)
(i) Borrowings (other than debt securities) in India 34,29,196 27,81,352
(ii) Borrowings (other than debt securities) outside India 4,34,796 3,41,099
Total 38,63,992 31,22,451
16.1 Loans and advances from banks are secured by pari passu charge through Security Trustee by way
of mortgage over Group’s specific immovable property, specified receivables of the Group arising
out of its business, other book debts and trade advances of the Group, Receivables from senior
and junior pass through certificates in which the company has invested, such other current assets
as may be identified by the Group from time to time accepted by the security trustee and other long
term and current investments.
16.2 Rate of interest payable on term loans varies between 4.85% to 7.84% (March 31, 2021 : 4.65% to
7.80%)
16.3 Loan from National Housing Bank is secured by way of hypothecation of book debt and guarantee /
Letter of comfort from Tata Capital Limited and is repayable in 28-60 (as at March 31, 2021: 28-60)
quarterly installments. Rate of Interest payable on Term loan varies between 2.94% to 8.50% (as at
March 31, 2021 4.61% to 8.50%).
16.4 Rate of Interest payable on external commercial borrowing varies between 6.90% to 8.62% (as at
March 31, 2021 6.97% to 8.26%).
16.5 Rate of Interest payable on Cash Credit / Over Draft & Working Capital Demand Loan varies
between 4.10% to 7.85% (as at March 31, 2021 4.20% to 8.55%).
16.6 No default has been made in repayment of any borrowings and/or interest for the year ended March
31, 2022 and March 31, 2021
147

As at As at
Subordinated liabilities
March 31, 2022 March 31, 2021
(A)
At Amortised cost
Unsecured
Non-Convertible Subordinated Debentures (Refer note 17.4 below) 4,68,729 3,75,047
Non-Convertible Perpetual Debentures (Refer note 17.5 below) 1,09,108 99,540
Cumulative Redeemable Preference Shares (Refer note 17.6 below) 1,11,008 1,15,895
[Face Value ` 1,10,992 lakh (As at March 31, 2021 ` 1,15,980 lakh)]
Total 6,88,845 5,90,482
(B)
(i) Subordinated liabilities in India 6,88,845 5,90,482
(ii) Subordinated liabilities outside India – –
Total 6,88,845 5,90,482
17.1 Of the above Subordinated Liabilities, Preference shares amounting to face value of ` 5,150 lakh (March
31, 2021 : ` 5,233 lakh lakh) are held by related parties.
17.2 Of the above Non-convertible perpetual debentures and Non-convertible subordinated amounting to face
value of ` 18,730 lakh are subscribed by related parties.
17.3 No default has been made in repayment of subordinated liabilities for the year ended March 31, 2022 and
March 31, 2021.
17.4 Particulars of Subordinated unsecured non-convertible debentures (“NCDs”) outstanding as on March 31,
2022
Redemption
NCDs NCDs
TCHFL Tier II Bond B FY-2011-12 29-Sep-11 29-Sep-21 - - 253 2,530
TCHFL Tier II Bond C FY-2011-12 28-Oct-11 28-Oct-21 - - 11 110
TCHFL Tier II Bond D FY-2011-12 04-Nov-11 04-Nov-21 - - 101 1,010
TCHFL Tier II Bond E FY-2011-12 25-Jan-12 25-Jan-22 - - 135 1,350
TCHFL Tier II Bond F FY-2011-12 12-Mar-12 12-Mar-22 - - 102 1,020
TCHFL Tier II Bond A FY-2012-13 10-May-12 10-May-22 10 100 10 100
TCHFL Tier II Bond C FY-2012-13 30-May-12 30-May-22 300 3,000 300 3,000
TCHFL Tier II Bond B FY-2012-13 30-May-12 30-May-22 3 30 3 30
TCHFL Tier II Bond D FY-2012-13 22-Aug-12 22-Aug-22 330 3,300 330 3,300
TCHFL Tier II Bond E FY-2012-13 28-Mar-13 28-Mar-23 150 1,500 150 1,500
TCHFL Tier II Bond A FY-2013-14 15-Apr-13 15-Apr-23 250 2,500 250 2,500
TCHFL Tier II Bond B FY-2013-14 23-Apr-13 23-Apr-23 21 210 21 210
TCHFL Tier II Bond C FY 2013-14 20-May-13 19-May-23 10 100 10 100
TCHFL Tier II Bond D FY 2013-14 10-Jan-14 10-Jan-24 77 770 77 770
TCHFL Tier II Bond E FY 2013-14 18-Mar-14 18-Mar-24 4 40 4 40
TCFSL Tier II Bond ‘A’ FY 2014-15 26-Sep-14 25-Sep-24 1,000 10,000 1,000 10,000
TCHFL Tier II Bond A FY 2014-15 26-Sep-14 26-Sep-24 480 4,800 480 4,800
TCFSL Tier II Bond ‘B’ FY 2014-15 07-Jan-15 07-Jan-25 350 3,500 350 3,500
148

Redemption
NCDs NCDs
TCFSL Tier II Bond ‘C’ FY 2014-15 30-Jan-15 30-Jan-25 750 7,500 750 7,500
TCFSL Tier II Bond ‘D’ FY 2014-15 31-Mar-15 31-Mar-25 2,000 20,000 2,000 20,000
TCHFL Tier-II Bond A FY 2015-16 28-Apr-15 28-Apr-25 400 4,000 400 4,000
TCFSL Tier II Bond ‘A’ FY 2015-16 22-Jul-15 22-Jul-25 900 9,000 900 9,000
TCHFL Tier II Bond B FY 2015-16 22-Jul-15 22-Jul-25 350 3,500 350 3,500
TCHFL Tier II Bond C FY 2015-16 16-Sep-15 16-Sep-25 100 1,000 100 1,000
TCHFL Tier II Bond D FY 2015-16 21-Sep-15 19-Sep-25 150 1,500 150 1,500
TCHFL Tier II Bond E FY 2015-16 04-Nov-15 04-Nov-25 300 3,000 300 3,000
TCHFL Tier II Bond F FY 2015-16 15-Dec-15 15-Dec-25 250 2,500 250 2,500
TCHFL Tier II Bond G FY 2015-16 17-Dec-15 17-Dec-25 250 2,500 250 2,500
TCHFL Tier II Bond H FY 2015-16 15-Mar-16 13-Mar-26 200 2,000 200 2,000
TCFSL Tier II Bond ‘B’ FY 2015-16 30-Mar-16 30-Mar-26 2,000 20,000 2,000 20,000
TCHFL Tier II Bond A FY 2016-17 04-Aug-16 04-Aug-26 2,000 20,000 2,000 20,000
TCFSL Tier-II Bond ‘A’ FY 2016-17 11-Aug-16 11-Aug-26 2,000 20,000 2,000 20,000
TCFSL Tier-II Bond ‘B’ FY 2016-17 26-Oct-16 26-Oct-26 150 1,500 150 1,500
TCFSL NCD Series III (2018) 27-Sep-18 27-Sep-28 2,95,490 2,955 2,95,490 2,955
TCFSL NCD Series III (2018) 27-Sep-18 27-Sep-28 34,18,488 34,185 34,18,488 34,185
TCFSL Tier-II Bond ‘A’ FY 2018-19 28-Dec-18 28-Dec-28 2,000 20,000 2,000 20,000
TCFSL Tier-II Bond “A” FY 2019-20 16-Apr-19 16-Apr-29 200 2,000 200 2,000
TCFSL Tier II NCD “A” FY 2019-20 Discount 13-Jun-19 16-Apr-29 650 6,500 650 6,500
Reissuance 1
TCFSL Tier II NCD “A” FY 2019-20 Premium 26-Jun-19 16-Apr-29 1,000 10,000 1,000 10,000
Reissuance 2
TCFSL Tier II NCD “A” FY 2019-20 Premium 29-Jul-19 16-Apr-29 295 2,950 295 2,950
Reissuance 3
TCCL Tier II Bond “A” FY 2019-20 10-May-19 10-May-29 500 5,000 500 5,000
TCCL Tier II Bond “A” FY 2019-20 Reissuance no 1 29-May-19 10-May-29 500 5,000 500 5,000
TCCL Tier II Bond “A” FY 2019-20 Reissuance no2 27-Jun-19 10-May-29 500 5,000 500 5,000
SERIES IV TRANCHE II – CATEGORY I & II. 26-Aug-19 26-Aug-29 46,500 465 46,500 465
SERIES IV TRANCHE II – CATEGORY III & IV. 26-Aug-19 26-Aug-29 17,26,973 17,270 17,26,973 17,270
TCFSL Tier-II Bond “B” FY 2019-20 13-Nov-19 13-Nov-29 1,000 10,000 1,000 10,000
TCFSL Tier-II Bond “B” FY 2019-20 Premium 03-Jan-20 13-Nov-29 700 7,000 700 7,000
Reissuance 1
TCCL Tier II Bond “B” FY 2019-20 13-Nov-19 13-Nov-29 500 5,000 500 5,000
TCCL Tier II Bond “B” FY 2019-20 Reissuance no 2 24-Feb-20 13-Nov-29 500 5,000 500 5,000
TCCL Tier II Bond “B” FY 2019-20 Reissuance no 1 03-Feb-20 13-Nov-29 1,000 10,000 1,000 10,000
TCHFL Tier II Bond Series VI FY-2019-20 14-Jan-20 14-Jan-30 7,80,402 7,804 7,80,402 7,804
TCCL Tier II Bond “A” FY 2020-21 28-Jul-20 26-Jul-30 500 5,000 500 5,000
TCCL Tier II Bond “A” FY 2020-21 Reissunace no 1 14-Oct-20 26-Jul-30 500 5,000 500 5,000
TCCL Tier II Bond “A” FY 2020-21 Reissunace no 2 17-Dec-20 26-Jul-30 500 5,000 500 5,000
TCFSL Tier-II Bond “A” FY 2020-21 17-Sep-20 17-Sep-30 750 7,500 750 7,500
TCFSL Tier-II Bond “A” FY 2020-21 Premium 13-Oct-20 17-Sep-30 1,250 12,500 1,250 12,500
Reissuance 1
149

Redemption
NCDs NCDs
TCFSL Tier-II Bond “A” FY 2020-21 Discount 23-Mar-21 17-Sep-30 1,000 10,000 1,000 10,000
Reissuance 2
TCHFL Tier II Bond A FY 2020-21 11-Jan-21 10-Jan-31 500 5,000 500 5,000
TCHFL Tier II Bond A FY-2021-22 19-Apr-21 18-Apr-31 1,500 15,000 - -
TCFSL Tier-II Bond “A” FY 2021-22 28-Jun-21 27-Jun-31 1,500 15,000 - -
TCFSL Tier-II Bond “B” FY 2021-22 24-Nov-21 24-Nov-31 500 50,000 - -
TCHFL Tier II Bond B FY-2021-22 14-Mar-22 12-Mar-32 250 2,500 - -
TCHFL Tier II Bond B FY-2021-22 - Reissue 1 28-Mar-22 12-Mar-32 1,460 14,600 - -
Total 4,51,079 3,59,999
Add: Interest accrued but not due 18,496 15,466
Add : Unamortised premium 426 481
Less : Unamortised borrowing cost (1,149) (762)
Less : Unamortised discount (123) (137)
Total 4,68,729 3,75,047
Note: Coupon rate of above outstanding as on March 31, 2022 varies from 7.33% to 11.25% (as on March 31, 2021 7.75% to
11.25%).
17.5 Particulars of Perpetual unsecured non-convertible debentures (“NCDs”) outstanding as on March
31, 2022
Redemption
NCDs NCDs
TCL Perpetual 'A' FY 2011-12 05-May-11 05-May-21 - - 20 100
TCL Perpetual 'B' FY 2011-12 08-Aug-11 27-Aug-21 - - 61 305
TCL Perpetual 'C' FY 2011-12 28-Sep-11 28-Sep-21 - - 10 50
TCL Perpetual 'D' FY 2011-12 07-Nov-11 07-Nov-21 - - 5 25
TCFSL Perpetual 'A' FY 2013-14 27-Mar-14 27-Mar-24 1,871 9,355 1,871 9,355
TCFSL Perpetual 'A' FY 2015-16 16-Jul-15 16-Jul-25 1,000 10,000 1,000 10,000
TCFSL Perpetual 'B' FY 2015-16 06-Jan-16 06-Jan-26 500 5,000 500 5,000
TCFSL Perpetual 'C' FY 2015-16 02-Feb-16 02-Feb-26 500 5,000 500 5,000
TCFSL Perpetual 'D' FY 2015-16 09-Feb-16 09-Feb-26 1,000 10,000 1,000 10,000
TCFSL Perpetual 'E' FY 2015-16 23-Mar-16 23-Mar-26 1,000 10,000 1,000 10,000
TCFSL Perpetual 'A' FY 2016-17 30-Jun-16 30-Jun-26 500 5,000 500 5,000
TCFSL Perpetual 'B' FY 2016-17 13-Jan-17 13-Jan-27 100 1,000 100 1,000
TCFSL Perpetual 'C' FY 2016-17 08-Mar-17 08-Mar-27 400 4,000 400 4,000
TCFSL Perpetual 'A' FY 2017-18 21-Jun-17 21-Jun-27 500 5,000 500 5,000
TCFSL Perpetual 'B' FY 2017-18 14-Jul-17 14-Jul-27 500 5,000 500 5,000
TCFSL Perpetual 'C' FY 2017-18 11-Sep-17 11-Sep-27 930 9,300 930 9,300
TCFSL Perpetual 'A' FY 2020-21 30-Sep-20 30-Sep-30 1,000 10,000 1,000 10,000
TCFSL Perpetual 'B' FY 2020-21 19-Oct-20 19-Oct-30 750 7,500 750 7,500
TCFSL Perpetual 'A' FY 2021-22 28-Feb-22 28-Feb-32 100 10,000 - -
Total (A) 1,06,155 96,635
Less: Unamortised borrowing cost (391) (399)
1,09,108 99,540
*Note : Coupon rate of above outstanding as on March 31, 2022 varies from 8.10% to 11.25% (March 31, 2021: 8.10% to 11.25%)
(` in lakh)
Year ended Year ended
Description of NCDs
March 31, 2022 March 31, 2021
Funds Raised through Perpetual Debt Instruments 10,000 17,500
Amount outstanding at the end of year 1,06,155 96,635
150
17.6 Particulars of Cumulative Redeemable Preference Shares outstanding as on March 31, 2022
(` in lakh)
Redemption Date/ Early Redemption
No of March 31, March 31,
Particulars Tranche Allotment Date Actual Redemption Date/ Actual
shares 2022 2021
Date Redemption Date
T 12,76,000 March 10, 2017 March 9, 2024 May 31, 2021 12,760 12,763
U 6,04,500 July 7, 2017 July 6, 2024 July 6, 2024 6,045 6,047
U 45,500 July 7, 2017 August 23, 2021 August 23, 2021 - 454
7.50% Cumulative Redeemable
V 7,36,000 July 12, 2017 July 11, 2024 July 11, 2024 7,360 7,361
Preference Shares of ` 1,000 each
V 14,000 July 12, 2017 August 23, 2021 August 23, 2021 - 140
W 6,69,500 July 26, 2017 July 25, 2024 July 25, 2024 6,695 6,697
W 80,500 July 26, 2017 August 23, 2021 August 23, 2021 - 804
X 7,50,000 July 28, 2017 July 27, 2024 October 30, 2021 7,500 7,501
Y 6,59,500 August 4, 2017 August 3, 2024 August 3, 2024 6,666 6,597
Y 88,000 August 4, 2017 August 23, 2021 August 23, 2021 - 879
7.15% Cumulative Redeemable Z 6,45,500 September 15, 2017 September 14, 2024 September 14, 2024 6,455 6,455
Preference Shares of ` 1,000 each Z 1,04,500 September 15, 2017 November 30, 2021 November 30, 2021 - 1,042
AA 5,83,700 September 29, 2017 September 28, 2024 September 28, 2024 5,837 5,838
AA 1,66,300 September 29, 2017 November 30, 2021 November 30, 2021 - 1,659
AB 4,00,000 April 20, 2018 April 19, 2025 September 30, 2022 4,001 3,998
AC 4,00,000 May 10, 2018 May 9, 2025 September 30, 2022 4,001 3,997
AD 3,34,500 June 15, 2018 June 14, 2025 September 30, 2022 3,346 3,342
AE 4,00,000 March 13, 2019 March 12, 2026 June 30, 2023 3,996 3,994
AF 4,00,000 June 12, 2019 June 11, 2026 September 30, 2023 3,992 3,993
AG 4,00,000 June 28, 2019 June 27, 2026 October 31, 2023 3,991 3,992
AH 3,90,000 August 7, 2019 August 6, 2026 November 30, 2023 3,896 3,893
AI 4,00,000 August 28, 2019 August 27, 2026 November 30, 2023 3,998 3,996
AJ 4,00,000 August 30, 2019 August 29, 2026 December 31, 2023 3,998 3,996
AK 4,00,000 September 4, 2019 September 3, 2026 January 31, 2024 3,992 3,988
AL 4,00,000 September 9, 2019 September 8, 2026 February 29, 2024 3,992 3,988
AM 4,50,000 September 18, 2019 September 17, 2026 March 31, 2024 4,496 4,494
AN 4,00,000 September 24, 2019 September 23, 2026 March 31, 2024 3,991 3,987
Total 1,11,008 1,15,895
Note:
Early Date of Redemption refers to the date on or before which the CRPS shall be redeemed, as per the terms of offer, in the
event of exercise of Call / Put Option by Option Exercise Date by the Group or CRPS holder(s), as the case may be, to seek early
redemption.
151

As at As at
Other Financial Liabilities
March 31, 2022 March 31, 2021
At Amortised cost
Security deposits 47,864 41,294
Payable for capital expenditure 5,075 2,188
Advances from customers 5,214 3,188
Dividend payable on preference shares 13 16
Accrued employee benefit expense 18,164 13,264
Unclaimed matured debentures and accrued interest thereon 137 69
Payable under letter of credit/buyers credit facility 12,680 37,255
Amounts payable - assigned loans 736 1,418
Book overdraft 37,706 46,118
Other financial liabilities 161 162
Total 1,27,750 1,44,972

As at As at
Provisions
March 31, 2022 March 31, 2021
At Amortised cost
(a) Provision for employee benefits
Compensated absences 2,418 2,329
Long-term service award 161 148
Share based payments to employees 86 86
(b) Others
Provision for off Balance Sheet exposure 4,637 3,286
Total 7,302 5,849

As at As at
Other Non-Financial Liabilities
March 31, 2022 March 31, 2021
At Amortised cost
Statutory dues 10,394 8,574
Revenue received in advance 645 1,060
Margin money received under Letter of credit/Buyer's credit 1,499 2,790
Other payables 1,256 1,327
Total 13,794 13,751
152
NOTE “21”
Equity Share Capital
(I) Share capital authorised, issued, subscribed and paid up

Particulars
No. of Shares (` in lakh) No. of Shares (` in lakh)
Authorised:
Equity Shares of ` 10 each 4,75,00,00,000 4,75,000 4,75,00,00,000 4,75,000
Preference shares of ` 1000 each 3,25,00,000 3,25,000 3,25,00,000 3,25,000
4,78,25,00,000 8,00,000 4,78,25,00,000 8,00,000
Issued, Subscribed & Paid up:
Equity shares of ` 10 each fully paid 3,51,61,67,744 3,51,617 3,51,61,67,744 3,51,617
Less: Net shares issued to employees by (5,27,97,999) (5,280) (5,25,25,530) (5,253)
ESOP trust
3,46,33,69,745 3,46,337 3,46,36,42,214 3,46,364
Add/(Less): Loans to Employees (net) (2) (4)
Total 3,46,33,69,745 3,46,335 3,46,36,42,214 3,46,360
(II) Reconciliation of the shares outstanding at the beginning and at the end of the year
Particulars
At the beginning of the year 3,46,36,42,214 3,46,360 3,46,44,18,549 3,46,375
Issued during the year - - - -
Add/(less): Net shares issued to employees (2,72,469) (27) (7,76,335) (78)
by ESOP trust
Add/(Less): Loans to Employees (net) - 2 - 63
Total 3,46,33,69,745 3,46,335 3,46,36,42,214 3,46,360
(III) Equity shares in the Company held by the holding company

Particulars
Tata Sons Private Limited 3,32,45,83,520 3,32,458 3,32,45,83,520 3,32,458
3,32,45,83,520 3,32,458 3,32,45,83,520 3,32,458
(IV) Details of shareholders holding more than 5% shares in the company

Equity Shares
No. of Shares % holding No. of Shares % holding
Tata Sons Private Limited 3,32,45,83,520 94.55% 3,32,45,83,520 94.55%
153
Rights, preferences and restrictions attached to shares

The Holding Company has one class of equity shares having a par value of ` 10 per share.
Each shareholder is eligible for one vote per share held. The dividend proposed by the Board
of Directors, if any, is subject to the approval of the shareholders at the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.
(V) Details of shares held by promoters

Name of Promoters
No. of Shares % holding No. of Shares % holding
Tata Sons Private Limited 3,32,45,83,520 94.55% 3,32,45,83,520 94.55%
(VI) Capital Management

The objective of the Group’s Capital Management is to maximise shareholder value, safeguard
business continuity and support the growth of its subsidiaries. The Group determines the capital
requirement based on annual operating plans and long-term and other strategic investment plans.
The funding requirements are met through loans and operating cash flows generated.
(VII) Employee stock option scheme

The Company is required to present disclosures as required by Para 44, 45, 46, 47, 50, 51 and 52
of Ind AS 102. It is required to present scheme wise terms and conditions of the ESOP schemes,
present for the employees of the Company.
A. Description of share based payments:
ESOP 2018 ESOP 2019 ESOP 2020 ESOP 2021 ESOP 2021
Particulars
RSU
i. Vesting requirements 20% at the 20% at the 20% at the 20% at the 100% at the
end of each end of each end of each end of each end of 36
12 and 24 12 and 24 12 and 20 12 and 24 months from
months and months and months and months and the date of
30% at the 30% at the 30% at the 30% at the grant
end of each end of each end of each end of each
36 and 48 36 and 48 32 and 44 36 and 48
months from months from months from months from
the date of the date of the date of the date of
grant grant grant grant
ii. Maximum term of option 7 years 7 years 7 years 7 years 3 years
iii. Method of settlement Equity settled Equity settled Equity settled Equity settled Equity settled
iv. Modifications to share based N.A. N.A. N.A. N.A. N.A.
payment plans
v. Any other details as N.A. N.A. N.A. N.A. N.A.
disclosed in the audited Ind
AS financial statements
154
B. Summary of share based payments

March 31, 2022
Particulars ESOP 2018 ESOP 2019 ESOP 2020
Outstanding balance at the beginning of the period 58,50,000 60,00,000 71,50,000
Options granted - - -
Options forfeited 2,10,000 2,75,000 4,87,500
Options exercised - 20,000 -
Options expired - - -
Options lapsed - - -
Options outstanding at the end of the period 56,40,000 57,05,000 66,62,500
Options exercisable at the end of the period 39,48,000 22,82,000 13,32,500
For share options exercised:
Weighted average exercise price at date of exercise
Money realized by exercise of options (In actual rupees)
For share options outstanding
Range of exercise prices 50.60 51.00 40.30
Average remaining contractual life of options 4.50 5.34 6.34
Modification of plans N.A. N.A. N.A.
Incremental fair value on modification N.A. N.A. N.A.
ESOP 2021 ESOP 2021 Total

Particulars
RSU
Outstanding balance at the beginning of the period - - 1,90,00,000
Options granted 53,62,500 23,11,672 76,74,172
Options forfeited - - 9,72,500
Options exercised - - 20,000
Options expired - - -
Options lapsed - - -
Options outstanding at the end of the period 53,62,500 23,11,672 2,56,81,672
Options exercisable at the end of the period - - 75,62,500
Weighted average exercise price at date of exercise 51
Money realized by exercise of options (In actual rupees) 10,20,000
Range of exercise prices 51.80 51.80
Average remaining contractual life of options 6.34 2.50 5.37
Modification of plans N.A. N.A.
Incremental fair value on modification N.A. N.A.
155
March 31, 2021

Particulars ESOP 2018 ESOP 2019 ESOP 2020 Total
Outstanding balance at the beginning of the 71,50,000 72,00,000 - 1,43,50,000
period
Options granted - - 71,50,000 71,50,000
Options forfeited 12,85,000 12,00,000 - 24,85,000
Options exercised 15,000 - - 15,000
Options expired - - - -
Options lapsed - - - -
Options outstanding at the end of the period 58,50,000 60,00,000 71,50,000 1,90,00,000
Options exercisable at the end of the period 23,40,000 12,00,000 - 35,40,000
Weighted average exercise price at date of 50.60
exercise
Money realized by exercise of options (In actual 7,59,000
rupees)
Range of exercise prices 50.60 51.00 40.30 -
Average remaining contractual life of options 4.50 5.34 6.34 5.46
Modification of plans N.A. N.A. N.A. N.A.
Incremental fair value on modification N.A. N.A. N.A. N.A.
C. Valuation of stock options

The fair value of services received in return for share options granted is based on the fair value of
share options granted, measured using the Black & Scholes formula. The inputs used in measuring
the fair values at grant date of the equity-settled share based payment plans were as follows :
Particulars ESOP 2018 ESOP 2019 ESOP 2020 ESOP 2021
Share price: 50.60 51.00 40.30 51.80
Exercise Price: 50.60 51.00 40.30 51.80
Fair value of option: 23.34 23.02 17.07 22.33
Valuation model used: Black Scholes Black Scholes Black Scholes Black Scholes
valuation valuation valuation valuation
Expected Volatility: 0.38 0.41 0.42 0.41
Basis of determination of expected Average Average Historical Historical
volatility: historical historical volatility of volatility of
volatility over volatility over equity shares equity shares
4.85 years of 4.85 years of of comparable of comparable
comparable comparable companies companies
companies companies over the over the period
period ended ended October
December 01,2021 based
15,2020 based on the life of
on the life of options
options
Contractual Option Life (years): 7 7 7 7
Expected dividends: - - - -
Risk free interest rate: 8.04% 6.28% 5.22% 5.87%
156

Vesting Dates 20% vesting 20% vesting 20% vesting 20% vesting
on September on August 01, on December on September
30, 2019 2020 14, 2021 30, 2022
40% vesting 40% vesting 40% vesting 40% vesting
on September on August 01, on July 31, on July 31,
30, 2020 2021 2022 2023
30, 2021 2022 2023 2024
30, 2022 2023 2024 2025
Valuation of incremental fair value on N.A. N.A. N.A. N.A.
modification
D) Options granted and inputs used for measurement of fair value of options, for the key
managerial employees and other senior employees
Mr. Rajiv Sabharwal Mr. Rakesh Bhatia
Name of Scheme
Granted Exercised Granted Exercised
ESPS 2009 - - 50,151 50,151
ESPS 2011 - - - -
ESOP 2011 - - - -
PS 2013 - - - -
ESPS 2013 - - - -
ESOP 2013 - - - -
ESOP 2016 - - - -
ESOP 2017 - - - -
ESOP 2018 16,00,000 - - -
ESOP 2019 16,00,000 - - -
ESOP 2020 17,60,000 - 2,00,000 -
ESOP 2021 12,00,000 - 2,25,000
ESOP 2021 RSU 5,17,297 - 96,993
Total 66,77,297 - 5,72,144 50,151
Ms. Sarita Kamath*

Name of Scheme
Granted Exercised
ESPS 2009 - -
ESPS 2011 3,000 3,000
ESOP 2011 - -
PS 2013 323 323
ESPS 2013 - -
ESOP 2013 30,000 30,000
ESOP 2016 10,000 10,000
ESOP 2017 10,000 10,000
ESOP 2018 1,00,000 -
ESOP 2019 1,00,000 -
ESOP 2020 1,10,000 -
ESOP 2021 1,12,500 -
ESOP 2021 RSU 48,497 -
Total 5,24,320 53,323
157

Mr. Rajiv Sabharwal Mr. Rakesh Bhatia
Name of Scheme
ESPS 2009 - - 50,151 50,151
ESPS 2011 - - - -
ESOP 2011 - - - -
PS 2013 - - - -
ESPS 2013 - - - -
ESOP 2013 - - - -
ESOP 2016 - - - -
ESOP 2017 - - - -
ESOP 2018 16,00,000 - - -
ESOP 2019 16,00,000 - - -
ESOP 2020 17,60,000 - 2,00,000 -
Total 49,60,000 - 2,50,151 50,151
Ms. Avan Doomasia* Ms. Sarita Kamath*

Name of Scheme
ESPS 2009 80,615 80,615 - -
ESPS 2011 - - 3,000 3,000
ESOP 2011 60,000 60,000 - -
PS 2013 8,690 8,690 323 323
ESPS 2013 - - - -
ESOP 2013 - - 30,000 30,000
ESOP 2016 10,000 10,000 10,000 10,000
ESOP 2017 10,000 10,000 10,000 10,000
ESOP 2018 1,25,000 - 1,00,000 -
ESOP 2019 1,00,000 - 1,00,000 -
ESOP 2020 - - 1,10,000 -
Total 3,94,305 1,69,305 3,63,323 53,323
* Ms. Avan Doomasia ceased to be a KMP w.e.f. November 30, 2020 and Ms. Sarita Kamath
was appointed as KMP w.e.f. December 01, 2020.
158

As at As at
Other Equity
March 31, 2022 March 31, 2021
Securities premium 2,93,214 2,93,323
Capital reserve 43 43
Capital redemption reserve 575 575
Debenture redemption reserve 30,000 30,000
Special reserve account 1,74,335 1,39,222
Retained earnings 3,10,227 1,77,672
General reserve 2,026 1,785
Employee stock option outstanding account 3,279 2,111
Foreign currency translation reserve 9,107 7,504
Other comprehensive income
Remeasurement of defined benefit liability/asset (355) (170)
Fair value changes of financial instrument measured at fair 1,933 1,324
value through other comprehensive income
The effective portion of gains and loss on hedging instruments 1,502 (2,420)
in a cost of hedge
Debt instruments through other comprehensive income (915) (29)
Total 8,24,971 6,50,940
1. Securities premium: The amount received in excess of face value of the equity shares is
recognised in Securities Premium Account.
2. Capital Reserve: Reserve created on accounting of merger of subsidiaries.
3. Capital Redemption Reserve: This reserve has been created and held in books as per
requirement of the Companies Act.
4. Debenture redemption reserve: As per section 71(4) of the Companies Act 2013, created out of
the profits of the Group available for payment of dividend and credited to such account, shall not be
utilised except for redemption of debentures
5. Special reserve Account/ Statutory Reserve: As prescribed by section 45-IC of the Reserve Bank
of India Act, 1934, Section 29C of National Housing Bank Act 1987,and Section 36 (1) (viii) of the
Income Tax Act,1961. No appropriation of any sum from the reserve fund shall be made by the
Group except for the purpose as may be specified by RBI/NHB from time to time.
6. General reserve: Created upon employees stock options that expired unexercised or upon
forfeiture of options granted.
7. Employee stock option outstanding account: Created upon grant of options to employees.
8. Foreign Currency Translation Reserve: The reserve is created on account of translation of assets
and liabilities of foreign subsidiaries.
159

Interest income ended ended
March 31, 2022 March 31, 2021
On financial assets measured at:
(i) Amortised cost
Interest on loans and credit substitutes 8,94,695 8,61,147
Interest income from investments 9,138 1,548
Interest on deposits with bank 562 2,436
Other interest income 118 104
(ii) Fair value through other comprehensive income
Interest on loans and credit substitutes 3,767 7,214
Interest on debentures 498 136
(iii) Fair value through profit and loss
Interest on debentures 311 194
Total 9,09,089 8,72,779

Fees and commission Income ended ended
March 31, 2022 March 31, 2021
Foreclosure charges 7,987 6,831
Fees on value added services and products 855 640
Advisory Fees 1,048 894
Distribution fee 5 419
Others (valuation charges, PDD charges etc) 9,928 6,192
Total 19,823 14,976

Net gain/(loss) on fair value changes ended ended
March 31, 2022 March 31, 2021
(A) Net gain/(loss) on financial instruments classified at fair
value through profit or loss
(i) On trading portfolio
- Investments 17,530 19,608
(ii) On financial instruments designated at fair value
through profit or loss
(B) Others 22,393 30,279
Total 39,923 49,887
(C) Fair value changes:
– Realised 8,327 15,317
– Unrealised 31,596 34,570
Total 39,923 49,887
160

Other income ended ended
March 31, 2022 March 31, 2021
Branch advertisement income 5,990 2,220
Income from distribution of financial products 7,343 4,700
Net gain/(loss) on derecognition of property, plant and equipment 1,014 (46)
Interest on income tax refund 54 2,494
Income from advisory services 5,218 5,480
Other miscellaneous Income 588 382
Total 20,207 15,230

Finance costs ended ended
March 31, 2022 March 31, 2021
At Amortised Cost
Interest on borrowings other than debt securities 1,58,634 2,12,285
Interest on debt securities 2,19,132 2,05,215
Interest on subordinated liabilities 52,803 47,839
Interest on external commercial borrowings (ECB) 22,697 20,905
Interest cost of lease liabilities 935 969
Other interest expenses 357 484
Discounting Charges
(i) On commercial paper 30,454 33,561
(ii) On debentures 3,891 -
Total 4,88,903 5,21,258

Impairment on financial instruments ended ended
March 31, 2022 March 31, 2021
Loans and credit substitutes
Impairment loss allowance on loans (Stage I & II)
- At amortised cost 43,005 18,205
- At FVTOCI (580) 631
42,425 18,836
Impairment loss allowance on loans (Stage III) - at amortised cost (324) 19,149
Less : Delinquency Support (81) (301)
(405) 18,848
Write off - Loans and credit substitutes - at amortised cost 66,061 1,02,081
Impairment on Investments (3) (3)
Trade receivables (17) 15
Total 1,08,061 1,39,777
161

Employee benefits expenses ended ended
March 31, 2022 March 31, 2021
Salaries, wages and bonus 81,128 64,352
Contribution to provident, superannuation and pension fund 2,878 2,547
Share based payments to employees 1,510 1,068
Staff welfare expenses 1,124 454
Expenses related to post-employment defined benefit plans 885 977
Total 87,525 69,398

Other expenses ended ended
March 31, 2022 March 31, 2021
Advertisements and publicity 6,153 4,278
Brand Equity and Business Promotion 2,653 2,731
Corporate social responsibility expenses 2,612 2,153
Equipment hire charges - 84
Information Technology expenses 20,184 15,748
Insurance charges 2,119 1,888
Incentive / commission/ brokerage 413 356
Legal and professional fees 8,334 7,644
Loan processing fees 3,996 2,264
Printing and stationery 589 384
Reversal of provision against assets held for sale (1) (466)
Power and fuel 1,015 763
Repairs and maintenance 228 342
Rent, rates and taxes 803 490
Stamp charges 1,618 830
Service providers’ charges 32,922 24,583
Training and recruitment 793 393
Telephone, telex and leased line 532 475
Travelling and conveyance 3,291 1,738
Directors remuneration 480 541
Other miscellaneous expenses [Refer note 30(a) below] 379 660
Total 89,113 67,879
(a) Auditors’ remuneration (excl. Taxes)
(` in lakh)
March 31, 2022 March 31, 2021
(i) Audit fees 417 246
(ii) Tax audit fees 22 11
(iii) Other Services (includes out of pocket expenses)* 43 78
482 335
(Auditors’ remuneration is part of Other expenses)
*Includes certification expenses
162
(b) Corporate social responsibility expenses

(i) Gross amount required to be spent by the Group during the year was ` 2,612 lakh (PY:
` 2,153 lakh)
(ii) Amount spent during the year on:
(` in lakh)
Particulars Paid Yet to be paid
Construction/acquisition of any asset 1,527 -
On purposes other than above 1,085 -
We endeavour to improve the lives of the community, especially the socially and economically
underprivileged communities, by making a long term, measurable and positive impact through
projects in the areas of education, climate action, health and skill development.
NOTE “31”
The financial statements of the following subsidiaries have been consolidated as per Ind AS 110
on Consolidated Financial Statements as on March 31, 2022:-
% Holding % Holding
Sr Country of
Name of the Subsidiary as at as at
No. Incorporation
March 31, 2022 March 31, 2021
1 Tata Securities Limited India 100.00 100.00
2 Tata Capital Housing Finance Limited India 100.00 100.00
3 Tata Capital Financial Services Limited India 100.00 100.00
4 Tata Capital Growth Fund India 73.75 73.75
5 Tata Cleantech Capital Limited India 80.50 80.50
6 Tata Capital Pte. Limited Singapore 100.00 100.00
7 Tata Capital Advisors Pte. Limited Singapore 100.00 100.00
(Subsidiary of Tata Capital Pte. Limited)
8 Tata Capital Plc United 100.00 100.00
(Subsidiary of Tata Capital Pte. Limited) Kingdom
9 Tata Capital General Partners LLP Singapore 80.00 80.00
10 Tata Capital Healthcare General Partners LLP Singapore 100.00 100.00
11 Tata Capital Healthcare II General Partners LLP Singapore 100.00 100.00
12 Tata Opportunities General Partners LLP Singapore 90.00 90.00
13 Tata Capital Growth II General Partners LLP Singapore 80.00 80.00
14 Tata Capital Special Situation Fund India 28.20 28.20
15 Tata Capital Innovation Fund India 27.79 27.69
16 Tata Capital Growth Fund II* India 34.02 29.89
17 Tata Capital Healthcare Fund I India 32.17 32.17
18 Tata Capital Healthcare Fund II* India 19.86 24.66
19 TCL Employee Welfare Trust India - -
*Note: Consolidated based on beneficial interest held.
All the entities that are required to be consolidated as per IndAS 110 and IndAS 28 have been
consolidated for the purpose of preparation of these financial statements.
163
NOTE “32”
The Group has investments in the following associates, which are accounted under the
Equity Method in accordance with the Ind AS 28 on Accounting for Investment in Associate in
Consolidated Financial Statements as on March 31, 2022:-
(` In lakh)
Share
Country
Ownership Original of post Carrying
Sr of
Name of Associates As on Interest Cost of acquisition Impairment Amount of
No Incorpo-
(%) Investment Reserves & Investments
rataion
Surplus
Equity Shares
March 31, 2022 India 24.00% 18,528 27,346 - 45,874
1 Tata AutoComp Systems Limited
March 31, 2021 India 24.00% 18,528 16,350 - 34,878
March 31, 2022 India 4.48% 4,707 5,975 - 10,682
2 Tata Technologies Limited
March 31, 2021 India 4.48% 4,707 4,062 - 8,769
March 31, 2022 India 19.75% 2,335 (54) (792) 1,489
3 Novalead Pharma Private Limited
March 31, 2021 India 19.75% 2,335 (54) - 2,281
March 31, 2022 India 18.49% 2,900 - (2,050) 850
4 Vortex Engineering Private Limited
March 31, 2021 India 18.49% 2,900 - (1,950) 950
March 31, 2022 - - - - - -
5 Pluss Advanced Technologies Limited*
March 31, 2021 India 36.61% 1,500 32 - 1,532
March 31, 2022 India 21.00% 3,186 (634) - 2,552
6 Sea6 Energy Private Limited
March 31, 2021 India 28.84% 3,500 (533) - 2,967
March 31, 2022 India 25.70% 1,588 (495) (1,093) -
7 Alef Mobitech Soluations Private Limited
March 31, 2021 India 25.70% 1,588 (495) (1,093) -
March 31, 2022 India 35.01% 4,201 3 - 4,204
8 Tema India Limited
March 31, 2021 India 35.01% 4,201 52 - 4,253
March 31, 2022 India 0.01% 1 - (1) -
9 Kapsons Industries Private Limited
March 31, 2021 India 0.01% 1 - (1) -
March 31, 2022 India 2.21% 5,478 769 - 6,247
10 Tata Projects Limited
March 31, 2021 India 2.21% 2,823 1,174 - 3,997
March 31, 2022 India 0.72% 5,242 475 - 5,717
11 Tata Play Limited (formerly Tata Sky Limited)
March 31, 2021 India 0.72% 5,242 392 - 5,634
March 31, 2022 India 0.38% 982 (174) - 808
12 TVS Supply Chain Solutions Limited
March 31, 2021 India 0.42% 982 (226) - 756
March 31, 2022 - - - - - -
13 Shriram Properties Limited**
March 31, 2021 India 1.50% 3,935 - (1,535) 2,400
March 31, 2022 India 0.76% 734 114 - 848
14 Fincare Business Services Limited
March 31, 2021 India 0.78% 734 115 - 849
March 31, 2022 - - - - - -
15 Roots Corporation Limited^
March 31, 2021 India 2.43% 2,062 - (625) 1,437
March 31, 2022 India 0.11% 145 5 - 150
16 Fincare Small Finance Bank Limited
March 31, 2021 India 0.02% 27 3 - 30
March 31, 2022 India 35.70% 3,500 (226) - 3,274
17 Indusface Private Limited
March 31, 2021 India 35.35% 3,500 (60) - 3,440
March 31, 2022 India 3.90% 1,500 8 - 1,508
18 Linux Laboratories Private Limited
March 31, 2021 India 3.90% 1,500 12 - 1,512
March 31, 2022 India 33.07% 5,709 - - 5,709
19 Cnergyis Infotech India Pvt Ltd
March 31, 2021 - - - - - -
March 31, 2022 India 0.01% 1 - - 1
20 Atulaya Healthcare Private Limited
March 31, 2021 - - - - - -
March 31, 2022 60,737 33,112 (3,936) 89,913
Subtotal
March 31, 2021 60,065 20,824 (5,204) 75,685
164
(` In lakh)
Share
Country
Ownership Original of post Carrying
Sr of
Name of Associates As on Interest Cost of acquisition Impairment Amount of
No Incorpo-
(%) Investment Reserves & Investments
rataion
Surplus
Preference Shares
March 31, 2022 India - 2,464 - - 2,464
1 Lokmanaya Hospital Private Limited
March 31, 2021 India - 2,464 - - 2,464
March 31, 2022 India - 300 - - 300
2 Tema India Limited
March 31, 2021 India - 300 - - 300
March 31, 2022 India - 6,000 - (6,000) -
3 Kapsons Industries Private Limited
March 31, 2021 India - 6,000 - (6,000) -
March 31, 2022 - - - - - -
4 Pluss Advanced Technologies Limited*
March 31, 2021 India - 1,020 - - 1,020
March 31, 2022 India - 1,712 - (1,712) -
5 Alef Mobitech Soluations Private Limited
March 31, 2021 India - 1,712 - (1,712) -
March 31, 2022 India - 3,500 - - 3,500
6 Linux Laboratories Private Limited
March 31, 2021 India - 3,500 - - 3,500
March 31, 2022 India - 3,999 - - 3,999
7 Atulaya Healthcare Private Limited
March 31, 2021 - - - - - -
March 31, 2022 India - 2,091 - - 2,091
8 Cnergyis Infotech India Pvt Ltd
March 31, 2021 - - - - - -
March 31, 2022 USA - 4,340 - - 4,340
9 DeepTek, Inc
March 31, 2021 - - - - - -
March 31, 2022 24,406 - (7,712) 16,694
Subtotal
March 31, 2021 14,996 - (7,712) 7,284
Total March 31, 2022 85,143 33,112 (11,648) 1,06,608
March 31, 2021 75,061 20,824 (12,916) 82,969
Notes:
1) Consolidated based on unaudited financial statements as at the year/relevant period during the
year.
*Pluss Advanced Technologies Limited ceased to be Associate Company on October 6, 2021
**Shriram Properties Limited ceased to be Associate Company on December 22, 2021
^Roots Corporation Limited ceased to be Associate Company on March 25, 2022
165
NOTE “33”
166
Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial
Statements to Schedule III to the Companies Act, 2013
(` In lakh)
For the year For the year For the year For the year For the year For the year
As at 31 March As at 31 March
ended ended ended ended ended ended
2022 2021
31 March 2022 31 March 2021 31 March 2022 31 March 2021 31 March 2022 31 March 2021
Net assets, i.e., total assets minus Share in other comprehensive Share in total comprehensive
Share in profit and loss
total liabilities income income
Name of the entity
As % of As % of As % of As % of As % of As % of As % of As % of
consol- consol- consol- consol- consol- consol- consol- consol-
idated Amount idated Amount idated Amount idated Amount idated Amount idated Amount idated Amount idated Amount
net net net profit or net profit or net profit or
assets assets assets loss assets loss assets loss
Parent:
Tata Capital Limited 59.92 7,01,798 69.48 6,92,878 5.04 8,311 4.15 4,668 (1.98) (100) (136.78) 688 4.83 8,211 4.78 5,356
Subsidiaries
Indian
Tata Capital Financial Services Limited 66.27 7,76,269 67.54 6,73,530 49.58 81,720 60.15 67,705 53.78 2,724 160.64 (808) 49.71 84,444 59.69 66,897
Tata Capital Housing Finance Limited 30.45 3,56,680 30.87 3,07,902 34.49 56,853 31.56 35,524 6.91 350 (12.13) 61 33.67 57,203 31.75 35,585
Tata Cleantech Capital Limited 14.32 1,67,685 11.66 1,16,247 12.37 20,381 14.90 16,775 (1.20) (61) (124.85) 628 11.96 20,320 15.53 17,403
Tata Securities Limited 0.10 1,227 0.24 2,398 (0.71) (1,172) (0.17) (189) 0.02 1 (0.80) 4 (0.69) (1,171) (0.17) (185)
Tata Capital Growth Fund 0.91 10,703 0.92 9,177 2.08 3,424 0.87 976 0.12 6 (109.15) 549 2.02 3,430 1.36 1,525
Tata Capital Healthcare Fund I 0.34 3,932 0.48 4,749 (0.50) (817) 6.69 7,535 - - - - (0.48) (817) 6.72 7,535
Tata Capital Healthcare Fund II 1.07 12,519 0.52 5,182 (1.72) (2,832) (1.08) (1,215) - - - - (1.67) (2,832) (1.08) (1,215)
Tata Capital Special Situation Fund 0.40 4,627 0.47 4,670 (0.03) (44) (1.80) (2,028) - - - - (0.03) (44) (1.81) (2,028)
Tata Capital Innovation Fund 0.28 3,248 0.64 6,340 2.73 4,499 (2.72) (3,058) - - - - 2.65 4,499 (2.73) (3,058)
Tata Capital Growth Fund II 7.34 86,022 6.10 60,848 9.54 15,732 15.37 17,303 - - - - 9.26 15,732 15.44 17,303
Tata Capital Employee Welfare Trust 0.15 1,729 0.17 1,714 0.01 14 0.01 9 - - - - 0.01 14 0.01 9
Foreign
Tata Capital Pte. Limited 4.14 48,546 4.33 43,210 2.92 4,809 4.73 5,327 14.13 716 147.51 (742) 3.25 5,525 4.09 4,585
Tata Capital Advisors Pte. Limited 1.08 12,594 1.01 10,095 1.30 2,150 1.89 2,123 - - - - 1.27 2,150 1.89 2,123
Tata Capital General Partners LLP 0.45 5,274 0.51 5,092 0.01 23 0.02 28 - - - - 0.01 23 0.02 28
Tata Capital Growth II General Partners LLP 0.00 32 0.00 18 0.01 14 - 2 - - - - 0.01 14 - 2
Tata Capital Healthcare General Partners LLP 0.00 27 0.00 27 - - - - - - - - - - - -
Tata Capital Healthcare II General Partners
0.00 18 0.00 11 0.00 6 - 4 - - - - 0.00 6 - 4

LLP
NOTE “33”
(` In lakh)
2022 2021
Name of the entity
Tata Opportunities General Partners LLP 0.00 14 0.00 14 - - - (1) - - - - - - - (1)
Tata Capital PLC 0.10 1,132 0.11 1,134 0.01 19 (0.06) (64) - - - - 0.01 19 (0.06) (64)
Minority Interests in all subsidiaries
Indian
Tata Cleantech Capital Limited 2.79 32,699 2.27 22,668 (2.41) (3,974) (2.91) (3,272) 0.24 12 24.25 (122) (2.33) (3,962) (3.03) (3,394)
Tata Capital Growth Fund 0.19 2,249 0.27 2,650 (0.55) (899) (0.23) (256) (0.02) (1) 28.63 (144) (0.53) (900) (0.36) (400)
Tata Capital Healthcare Fund I 0.18 2,131 0.32 3,221 0.34 554 (1.52) (1,709) - - - - 0.33 554 (1.52) (1,709)
Tata Capital Healthcare Fund II 0.86 10,033 0.39 3,887 1.73 2,853 1.07 1,201 - - - - 1.68 2,853 1.07 1,201
Tata Capital Special Situation Fund 0.28 3,322 0.34 3,353 0.02 31 1.29 1,456 - - - - 0.02 31 1.30 1,456
Tata Capital Innovation Fund 0.20 2,345 0.46 4,585 (1.97) (3,249) 1.96 2,211 - - - - (1.91) (3,249) 1.97 2,211
Tata Capital Growth Fund II 4.85 56,754 4.04 40,277 (6.40) (10,554) (10.21) (11,497) - - - - (6.21) (10,554) (10.26) (11,497)
TCL Employee Welfare Trust 0.15 1,729 0.17 1,716 (0.01) (14) (0.01) (9) - - - - (0.01) (14) (0.01) (9)
Foreign
Tata Capital Pte. Limited 0.09 1,029 0.10 1,022 0.00 (7) (0.01) (6) - - - - 0.00 (7) (0.01) (6)
Associates (Investment as per the equity
method)
Indian
Equity shares
Tata Autocomp Systems Limited 3.92 45,874 3.50 34,879 5.85 9,641 (0.53) (598) 26.72 1,353 42.54 (214) 6.47 10,994 (0.72) (812)
Tata Play Limited (formerly Tata Sky Limited) 0.49 5,717 0.56 5,634 0.05 83 (0.44) (492) - - 0.20 (1) 0.05 83 (0.44) (493)
Roots Corporation Limited - - 0.14 1,437 - - - - - - - - - - - -
Tata Projects Limited 0.53 6,247 0.40 3,997 (0.23) (382) 0.01 14 (0.45) (23) 6.56 (33) (0.24) (405) (0.02) (19)
Fincare Business Services Limited 0.07 848 0.09 849 - - (0.02) (17) - - (1.39) 7 - - (0.01) (10)
Fincare Small Finance Bank Limited 0.01 150 0.00 30 0.00 2 0.00 3 - - - - 0.00 2 0.00 3
Shriram Properties Limited - - 0.24 2,400 - - - - - - - - - - - -
167
NOTE “33”
168
(` In lakh)
2022 2021
Name of the entity
TVS Supply Chain Solutions Limited 0.07 808 0.08 756 0.03 50 (0.20) (224) 0.04 2 0.99 (5) 0.03 52 (0.20) (229)
Tata Technologies Limited 0.91 10,682 0.88 8,769 1.16 1,907 0.81 914 0.12 6 (80.52) 405 1.13 1,913 1.18 1,319
Novalead Pharma Private Limited 0.13 1,490 0.23 2,281 - - (0.01) (11) - - - - - - (0.01) (11)
Tema India Limited 0.36 4,204 0.43 4,253 (0.01) (18) 0.05 52 - - - - (0.01) (18) 0.05 52
Kapsons Industries Private Limited - - - (1) - - - - - - - - - - - -
Pluss Advanced Technologies Limited - - 0.15 1,532 - - 0.15 166 - - - - - - 0.15 166
Vortex Engineering Private Limited 0.07 850 0.10 950 - - - - - - - - - - - -
Sea6 Energy Private Limited 0.22 2,552 0.30 2,967 (0.09) (149) (0.04) (43) - - - - (0.09) (149) (0.04) (43)
Alef Mobitech Solutions Private Limited - - - - - - 0.01 12 - - - - - - 0.01 12
Indusface Private Limited 0.28 3,274 0.34 3,440 (0.10) (166) (0.05) (60) - - - - (0.10) (166) (0.05) (60)
Linux Laboratories Pvt Ltd 0.13 1,508 0.15 1,512 0.00 (4) 0.01 13 - - - - 0.00 (4) 0.01 13
Cnergyis Infotech India Pvt Ltd 0.49 5,709 - - - - - - - - - - - - - -
Atulaya Healthcare Private Limited 0.00 1 - - - - - - - - - - - - - -
Preference Shares
Lokmanaya Hospital Private Limited 0.21 2,464 0.25 2,464 - - - - - - - - - - - -
Tema India Limited 0.03 300 0.03 300 - - - - - - - - - - - -
Kapsons Industries Private Limited - - - - - - - - - - - - - - - -
Pluss Advanced Technologies Limited - - 0.10 1,020 - - - - - - - - - - - -
Alef Mobitech Soluations Private Limited - - - - - - - - - - - - - - - -
Linux Laboratories Pvt Ltd 0.30 3,500 0.35 3,500 - - - - - - - - - - - -
Cnergyis Infotech India Pvt Ltd 0.18 2,091 - - - - - - - - - - - - - -
Atulaya Healthcare Private Limited 0.34 3,999 - - - - - - - - - - - - - -
Deeptek Inc. 0.37 4,340 - - - - - - - - - - - - - -
Eliminations (106.02) (12,41,669) (111.73) (11,14,284) (14.54) (23,974) (23.69) (26,689) 1.57 78 154.30 (776) (14.07) (23,896) (24.49) (27,465)
Total 100.00 11,71,306 100.00 9,97,300 100.00 1,64,821 100.00 1,12,583 100.00 5,063 100.00 (503) 100.00 1,69,884 100.00 1,12,080
NOTE “34”
Disclosure pursuant to Ind AS 112 “Disclosure of Interest in other entities”: Material Associates
i. Summarised Statement of Profit and Loss (` in lakh)
Tata AutoComp Systems Limited
Particulars FY 2021-22 FY 2020-21
(Unaudited) (Unaudited)
Revenue 7,15,944 4,22,400
Profit/(loss) for the year 46,487 (4,500)
Other comprehensive income for the year 3,208 (1,626)
Total comprehensive income 49,695 (6,126)
Dividend received from associate - -
ii. Summarised Balance Sheet (` in lakh)
Tata AutoComp Systems Limited
(Unaudited) (Unaudited)
Non-current asset 3,32,864 2,73,356
Current asset 2,51,676 1,70,436
Non-current liabilities 1,68,564 1,40,960
Current liabilities 2,45,992 1,79,773
Equity attributable to equity shareholders 1,40,539 94,724
Group's share in % 24% 24%
Group's share 33,729 22,734
Add: Goodwill 12,145 12,145
Carrying amount 45,874 34,878
iii. Financial Information in respect of individually non-material associate (` in lakh)
Aggregate carrying amount of investment in individually non- 44,040 40,808
material associate
Aggregate amounts of the Group’s share of:
Profit/(loss) for the year 1,323 326
Other comprehensive income for the year (15) 372
Total comprehensive income for the year 1,308 698
iv. Share in profit /(loss) of associates (net) (` in lakh)
Non-material associate 1,323 326
Material associate 9,641 (598)
Total 10,964 (272)
v. Share in other comprehensive income of associates (net) (` in lakh)
Non-material associate (15) 372
Material associate 1,353 (214)
Total 1,338 158
169
NOTE “35”
Provisions and Contingent Liabilities :
(i) Movement in impairment provision during the year is as under:
(` in lakh)
For the Year ended
Particulars
March 31, 2022 March 31, 2021
Opening Balance 2,60,345 2,22,875
Net additions during the year 42,680 37,470
Closing Balance 3,03,025 2,60,345
(Includes Provision for off Balance Sheet exposure and Provision for letter of credit/buyer’s credit
facility ` 4,736 lakh (As at March 31, 2021: ` 3,584 lakh)
(ii) Movement in other provisions during the year is as under: (` in lakh)

For the Year ended
Particulars
March 31, 2022 March 31, 2021
Opening Balance 2,712 3,122
Net additions/(deletion) during the year 52 (410)
Closing Balance 2,764 2,712
(iii) Claims not acknowledged by the Group relating to cases contested by the Group and which
are not likely to be devolved on the Group relating to the following areas :
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Income Tax (Pending before Appellate Authorities) 11,017 15,078
VAT (Pending before Sales Tax Appellate Authorities) 6,542 951
Suits filed against the Group 1,224 1,036
Letter of credit 30,448 -
Bank Guarantees 1,654 830
Total 50,885 17,895
As at March 31, 2022, claims against the Group not acknowledged as debts in respect of income
tax matters amounted to ` 11,017 lakhs (Previous year: ` 15,078 lakhs). These claims against the
Group are arising on account of multiple issues of disallowances on completion of assessment
proceedings under the Income-tax Act, 1961, such as, disallowance u/s 14A of the Income-tax Act,
1961 for expenditure incurred in relation to exempt income and other disallowances. These matters
are pending before various appellate authorities and the Group expects that its position will likely
be upheld on ultimate resolution, in view of favourable Appellate Tribunal Orders for earlier years
and decision of jurisdictional High Court in respect of 14A disallowance. Accordingly, there will not
be a material adverse effect on the Group’s financial position and therefore, the Group has not
recognized these as uncertain tax positions in its books.
(iv) Commitments :
(a) Commitment to co-invest with Omega TC Holdings Pte. Ltd USD 15.06 Million (` 11,373 lakh)
(as at March 31, 2021 : USD 15.06 Million (` 11,026 lakh)
(b) Guarantees issued to National Housing Bank on behalf of Tata Capital Housing Finance
Limited ` 120,000 lakh (As at March 31, 2021 : ` 120,000 lakh) against which the amount
170
liable by Tata Capital Housing Finance Limited is ` 18,156 lakh as at March 31, 2022 (As at
March 31, 2021 ` 26,237 lakh). Pursuant to the terms of the Guarantee, the Group’s liability
on invocation is capped at the outstanding amount.
(c) Commitment in respect of uncalled capital investment in Partners’ Capital in Pitango Venture
Capital Fund amounting to ` 841 lakhs (as at March 31, 2021 : ` 1,310 lakhs).
(d) Undrawn Commitment given to Borrowers:
- As on March 31, 2022 ` 1,190,948 lakh (March 31, 2021: ` 766,463 lakhs)
- Less than 1 Year: ` 504,688 lakh (March 31, 2021: ` 428,893 lakhs)
- More than 1 Year: ` 686,260 lakh (March 31, 2021: ` 337,570 lakhs)
(e) Leases entered but not executed ` 155,561 lakh (March 31, 2021: ` 84,421 lakhs)
(f) Estimated amount of contracts remaining to be executed on capital account and not provided
for ` 2,167 lakh (March 31, 2021: ` 1,551 lakhs).
- Tangible: ` 675 lakh (March 31, 2021 : ` 136 lakhs)
- Intangible: ` 1,492 lakh (March 31, 2021 : ` 1,415 lakhs)
(g) Letter of Comfort ` 43,276 lakh (March 31, 2021: ` 10,083 lakhs)
NOTE “36”
Employee benefit expenses

A. Defined contribution plans
1) Superannuation Fund
The Group makes contribution towards superannuation fund, a defined contribution retirement plan
for qualifying employees. The Superannuation fund is administered by superannuation fund set up
as Trust by the Group. The Group is liable to pay to the superannuation fund to the extent of
the amount contributed. The Group recognizes such contribution as an expense in the year of
contribution. The Group has recognised ` 167 Lakhs (Year ended 31 March 2021 ` 142 Lakhs) for
Superannuation Fund contributions in the Statement of Profit and Loss.
B. Defined benefit plans

1) Provident Fund
The Group makes Provident Fund contributions, a defined contribution plan for qualifying
employees. Under the Schemes, both employees and the Group make monthly contributions at a
specified percentage of the covered employees’ salary (currently 12% of employees’ salary). The
contributions are made to the provident fund set up as an irrevocable trust by the Group, except
for two of its subsidiaries where contributions as specified under the law are paid to provident fund
administered by the Regional Provident Fund Commisisoner.
The employer’s contribution towards pension fund is paid by the Group to Regional Provident Fund
office, as specified under the law.
The interest rate payable to the members of the trust shall not be lower than the statutory rate
of interest declared by the Central Government under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Group. Hence
the Group is liable for annual contributions and any deficiency in interest cost compared to interest
computed based on the rate of interest declared by the Central Government. The total liability in
respect of the interest shortfall of the Fund is determined on the basis of an actuarial valuation. The
interest liability arising only to the extent of the aforesaid differential shortfalls is a defined benefit
plan. There is no such shortfall as at March 31, 2022.
171
The Provident Fund contributions along with the interest shortfall if any are recognized as an
expense in the year in which it is determined. The Group has recognised ₹ 2,652 Lakhs (Year
ended 31 March 2021 ₹ 2,343 Lakhs) for Provident Fund contributions and ₹ Nil (Year ended 31
March 2021 ₹ Nil) for interest shortfalls in the Statement of Profit and Loss.
2) Gratuity
The Company offers its employees defined benefit plans in the form of a gratuity scheme (a lump-
sum amount). Benefits under the defined benefit plans are typically based on years of service
and the employee’s compensation (generally immediately before retirement). The gratuity scheme
covers substantially all regular employees. Commitments are actuarially determined at year-
end. These commitments are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a discount rate corresponding to the
interest rate estimated by the actuary having regard to the interest rate on Government bonds with
a remaining term that is almost equivalent to the average balance working period of employees.
Actuarial valuation is done based on “Projected Unit Credit” method. Gains and losses of changed
actuarial assumptions are recorded in the Other Comprehensive Income. The Company provides
gratuity for employees in India as per payment of Gratuity Act, 1972. The gratuity scheme for
employees is as under:
Eligibility Continuous service for 5 years (not applicable in case of death or
disability while in service)
Benefit payable upon Retirement, Withdrawal, Death/Diability
Benefit payable For service less than 10 years: 15/26 X Salary X Service
For service greater than 10 years: Salary X Service
Salary definition Last drawn monthly basic salary + Dearness Allowance
Service definition Number of years of service rounded to the nearest integer
Normal retirement age 60 years
There are no statutory minimum funding requirements for gratuity plans mandated in India. However,
a Company can fund the benefits by way of a separate irrevocable Trust to take advantage of tax
exemptions and also to ensure security of benefits.
The Tata Capital Limited Gratuity Scheme is funded by way of a separate irrevocable Trust and the
Group is expected to make regular contributions to the Trust. The fund is managed internally by the
Group and the assets are invested as per the pattern prescribed under Rule 67 of Income Tax Rules,
1962. The asset allocation of the Trust is set by Trustees from time to time, taking into account the
membership profile, the liquidity requirements of the plan and risk appetite of the plan sponsor as per
the investment norms. Each year asset-liability matching study is performed in which the consequences
of the strategic investment policies are analysed in terms of risk and return profiles. Investment and
Contribution policies are integrated within this study.
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of
which are detailed below:
1. Interest rate risk: The defined benefit obligation calculated uses a discount rate based on
government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
2. Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit
obligation.
3. Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements
that include mortality, withdrawal, disability and retirement. The effect of these decrements on
the defined benefit obligation is not straight forward and depends upon the combination of salary
increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in
172
the financial analysis the retirement benefit of a short career employee typically costs less per year
as compared to a long service employee.
4. Investment risk : For funded plans that rely on insurers for managing the assets, the value of assets
certified by the insurer may not be the fair value of instruments backing the liability. In such cases,
the present value of the assets is independent of the future discount rate. This can result in wide
fluctuations in the net liability or the funded status if there are significant changes in the discount
rate during the inter-valuation period.
5. Legislative risk : Legislative risk is the risk of increase in the plan liabilities or reduction in the plan
assets due to change in the legislation/regulation. The government may amend the Payment of
Gratuity Act, 1972, thus requiring the companies to pay higher benefits to the employees. This
will directly affect the present value of the defined benefit obligation and the same will have to be
recognized immediately in the year when any such amendment is effective.
Movement in net defined benefit (asset) liability

a) Reconciliation of balances of Defined Benefit Obligations. (` in lakh)
Particulars Total Total Total Total
Funded Unfunded Funded Unfunded
Defined Obligations at the beginning 7,482 - 7,112 -
of the year
Current service cost 996 - 958 -
Interest cost 457 - 432 -
a. Due to change in financial assumptions (59) - (54) -
b. Due to change in experience adjustments 480 - (454) -
Benefits paid directly by the Group (675) - (512) -
Defined Obligations at the end of the year 8,681 - 7,482 -
b) Reconciliation of balances of Fair Value of Plan Assets (` in lakh)

Fair Value at the beginning of the year 8,780 - 6,814 -
Expected return on plan assets 174 - 1,083 -
Employer contributions 95 - 440 -
Interest Income on Plan Assets 565 - 443 -
Fair Value of Plan Assets at the end of the year 9,614 - 8,780 -
c) Funded status (` in lakh)

Deficit of plan assets over obligations - - - -
Surplus of plan assets over obligations 933 - 1,298 -
Total 933 - 1,298 -
173
d) Categories of plan assets (` in lakh)

Corporate bonds 1,802 - 1,736 -
Equity shares 690 - 542 -
Government securities 2,135 - 2,093 -
Insurer managed funds - ULIP Product 4,568 - 4,202 -
Cash 419 - 207 -
Total 9,614 - 8,780 -
e) Amount recognised in Balance sheet (` in lakh)

Present value of the defined benefit obligation 8,681 - 7,482 -
(Liability)
Fair value of plan assets 9,614 - 8,780 -
Net asset / (liability) recognised in the 933 - 1,298 -
Balance Sheet
f) Amount recognised in Statement of Profit and Loss (` in lakh)

Current Service Cost 996 - 958 -
Interest Cost (net) (108) - (11) -
Total 888 - 947 -
g) Amount recognised in OCI (` in lakh)

c. (Return) on plan assets (excl. interest income) (174) - (1,083) -
Total 247 - (1,591) -
Total defined benefit cost recognized in P&L and OCI 1,135 - (644) -
h) Expected cash flows for the following year (` in lakh)

As at As at
Particulars
March 31, 2022 March 31, 2021
Expected total benefit payments 13,328 11,201
Year 1 833 726
Year 2 999 738
Year 3 1,095 929
Year 4 1,158 1,015
Year 5 1,587 1,085
Next 5 years 7,657 6,707
174
i) Major Actuarial Assumptions

Particulars As at March 31, 2022 As at March 31, 2021
Discount Rate (%) 6.50% 6.40%
Salary Escalation/ Inflation (%) Non CRE:8.25%, CRE&J Non CRE: 8.25%, CRE&J
Grade:6% Grade:6%
Expected Return on Plan assets (%) 6.50% 6.40%
Mortality Table Indian assured lives Indian assured lives
Mortality (2006-08) Mortality (2006-08)
(modified) Ult. (modified) Ult.
Withdrawal (rate of employee turnover) CRE and J CRE and J
Grade : 40%; Grade : 40%;
Non CRE :Less than 5 Non CRE :Less than 5
years 25% and more years 25% and more than
than 5 years 10% 5 years 10%
Retirement Age 60 years 60 years
Estimate of amount of contribution in the 833 726
immediate next year (` in Lakhs)
The estimates for future salary increases, considered in actuarial valuation, take into account
inflation, seniority, promotion and other relevant factors.
The expected return on plan assets is based on market expectation, at the beginning of the period,
for returns over the entire life of the related obligation.
The following table shows a reconciliation from the opening balances to the closing balances for net
defined benefit (asset) liability and its components.
j) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions,
holding other assumptions constant, would have affected the defined benefit obligation by the
amounts shown below.
(` in lakh)
Particulars
Increase Decrease Increase Decrease
Discount rate (1% movement) (556) 627 (501) 567
Future salary growth (1% movement) 612 (554) 552 (498)
Others (Withdrawal rate 5% movement) (484) 704 (452) 670
k) Provision for leave encashment
(` in lakh)
Particulars Non Current Non Current
current current
Liability for compensated absences 1,677 456 1,636 402
l) Experience adjustments
(` in lakh)
Defined Plan assets Surplus/ Experience Experience
Particulars benefit (deficit) adjustments on adjustments on
obligation plan liabilities plan assets
Funded
2021-22 8,681 9,614 933 (480) 174
2020-21 7,482 8,780 1,298 454 1,083
Note: The actuarial valuation as at March 31, 2022 has been carried out on the basis of the membership data
provided as at February 28, 2022.
175
NOTE “37”
Disclosure under Ind AS 116: Leases

As a lessee the Group classified property leases as operating leases under Ind AS 116. These include
office premises taken on lease. The leases typically run for a period of one to thirteen years. Leases
include conditions such as non-cancellable period, notice period before terminating the lease or
escalation of rent upon completion of part tenure of the lease in line with inflation in prices.
Information about leases for which the Group is a lessee is presented below.
(I) Right-of-use assets

(` in lakh)
Opening balance 8,732 9,884
Additions during the year 6,740 2,572
Deletion during the year (1,179) (702)
Foreign currency translation 1 7
Depreciation charge for the year (3,161) (3,029)
Closing balance 11,133 8,732
(II) Movement of lease liabilities

(` in lakh)
Opening balance 10,243 11,374
Additions during the year 6,277 2,328
Deletion during the year (1,441) (731)
Finance cost 933 969
Foreign currency translation 3 3
Payment of lease liabilities (3,670) (3,700)
Closing balance 12,345 10,243
(III) Future minimum lease payments under non-cancellable operating leases were payable as
follows:
(` in lakh)
Less than one month 297 289
Between one and three months 594 653
Between three months and one year 2,633 2,407
Between one and five years 7,672 7,696
More than five years 2,846 1,228
Total undiscounted lease liabilities 14,042 12,273
(IV) Amounts recognized in the Statement of Profit and Loss

(` in lakh)
Interest on lease liabilities (933) (969)
Depreciation of ROU lease asset (3,161) (3,029)
Gain/(loss) on termination of leases 268 109
Rent concession related to COVID-19 56 222
176
(V) Amounts recognised In statement of cash flows

(` in lakh)
Total cash outflow for leases 3,670 3,699
Note:
1. The Group has considered entire lease term for the purpose of determination of Right of use assets
and Lease liabilities.
2. On 24 July 2020, the Ministry of Corporate Affairs (‘MCA’) issued a notification for the Companies (Indian
Accounting Standards) Amendment Rules, 2020 (‘Rules’), amendments related to IndAS 116 provide
relief for lessees in accounting for rent concessions granted as a direct consequence of Covid-19.
The amendments introduce an optional practical expedient that exempts lessees from having to
consider individual lease contracts to determine whether rent concessions occurring as a direct
consequence of the COVID-19 pandemic are lease modifications and allows lessees to account for
such rent concessions as if they were not lease modifications.
Pursuant to amendment, the Group has elected to apply for practical expedient and not to account
for COVID-19 related rent concession as lease modification.
NOTE “38”
Earnings per Share (EPS):
Profit for the year attributable to Owners of the company ` in lakh 1,64,821 1,12,583
Weighted average number of equity shares used in Nos 3,51,61,67,744 3,51,61,67,744
computing EPS
Face value of equity shares Rupees 10 10
Basic EPS/Diluted EPS Rupees 4.69 3.20
NOTE “39”
Operating segments -Basis for segmentation
See accounting policy in 2(xviii)
A. Basis for segmentation
In accordance with Ind AS 108 on Segment Reporting, the Group has identified three business
segments i.e. Financing Activity, Investment Activity and Others, and one Geographical Segment
viz. India, as secondary segment. These divisions offer different products and services, and are
managed separately based on the Group’s management.
Reportable segments Operations
Financing activity Loans for retail and corporate borrowers. Products offered include asset
financing, term loans (corporate and retail), channel financing, credit
substitutes, investments linked to/arising out of lending business, bill and
invoice discounting, Power project finance.
Investment activity Corporate investments
Others Advisory services, wealth management, distribution of financial products,
private equity fund management and leasing
a. Operating segment disclosures are consistent with the information reviewed by the chief
operating decision maker (CODM). The basis of measurement of segment information is
consistent with the basis of preparation of financial statements. The reconciling items are
limited to items that are not allocated to reportable segments, as opposed to a difference in
the basis of preparation of the information.
177
b. When two or more operating segments are aggregated into a single operating segment,
the judgements made in applying the aggregation criteria are disclosed by the Group. This
includes a brief description of the operating segments that have been aggregated in this way
and the economic indicators that have been assessed in determining that the aggregated
operating segments share similar economic characteristics.
NOTE “39”
Operating segments - Information about reportable segments

In accordance with Ind AS 108, the Group has identified three business segments i.e. Financing Activity,
Investment Activity, and Others and one Geographical Segment viz. India, as secondary segment.
(` in lakh)
For the For the
Particulars year ended year ended
March 31, 2022 March 31, 2021
Segment Revenue
a) Financing Activity 9,23,378 8,88,274
b) Investment Activity 1,01,407 90,633
c) Others 50,652 63,348
Total 10,75,437 10,42,255
Less : Inter Segment Revenue 50,226 45,977
Add : Interest on Income Tax Refund 54 2,494
Total Income 10,25,265 9,98,772
Segment Results
b) Investment Activity 30,892 30,665
c) Others 4,574 499
Total 2,45,199 1,81,132
Less : Unallocated Corporate Expenses 21,391 19,363
Add: Share of profit of associates 10,964 (272)
Profit before taxation 2,34,772 1,61,497
Less : Provision for taxation 54,691 37,033
Profit after taxation 1,80,081 1,24,464
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Segment Assets
b) Investment Activity 8,21,653 4,66,192
c) Others 47,067 95,693
d) Unallocated 1,38,145 1,19,299
Total 1,02,38,628 82,93,026
Segment Liabilities
b) Investment Activity 3,91,023 3,21,966
c) Others 77,700 1,05,563
d) Unallocated 64,417 52,885
Total 89,55,029 72,12,347
178
(` in lakh)
For the For the
March 31, 2022 March 31, 2021
Capital Expenditure (Including Capital Work-In-Progress)
a) Financing Activity 501 6,113
b) Investment Activity 2 -
c) Others 3,493 -
d) Unallocated - -
Total 3,996 6,113
Depreciation and Amortisation
a) Financing Activity 4,352 4,090
b) Investment Activity 70 -
c) Others 20,525 26,756
d) Unallocated 2,641 2,591
Total 27,588 33,437
Geographical information:
(` in lakh)
Revenue by location of
customers
Particulars For the For the
year ended year ended
March 31, 2022 March 31, 2021
a) India 10,13,520 9,85,969
b) Singapore 11,660 12,639
c) United Kingdom 85 164
Total 10,25,265 9,98,772
(` in lakh)
Non current assets by location
of customers
Particulars
As at As at
March 31, 2022 March 31, 2021
a) India 2,16,113 1,92,329
b) Singapore 218 44
Total 2,16,331 1,92,373
179
NOTE “40”
Disclosure persuant to Ind AS 7 “Statement of Cash Flows”
Changes in Liabilities arising from financing activities
MMarch 31, 2022 (` in lakh)
April 1, Cash Exchange Others* March 31,

Particulars
2021 Flows Difference 2022
Debt Securities 31,93,375 8,65,556 - 10,209 40,69,140
Borrowings (Other than debt securities) 31,22,451 7,41,822 (1,441) 1,160 38,63,992
Subordinated liabilities 5,90,482 95,320 - 3,043 6,88,845
Total 69,06,308 17,02,698 (1,441) 14,412 86,21,977
Note: *Includes the effect of amortisation of borrowing cost, amortisation of premium/discount on CPs/
NCDs and interest accrued.
March 31, 2021 (` in lakh)
April 1, Cash Exchange Others* March 31,

Particulars
2020 Flows Difference 2021
Debt Securities 31,42,245 32,600 - 18,530 31,93,375
Borrowings (Other than debt securities) 35,09,133 (3,56,255) (10,027) (20,400) 31,22,451
Subordinated liabilities 5,51,624 36,587 - 2,271 5,90,482
Total 72,03,002 (2,87,068) (10,027) 401 69,06,308
Note: *Includes the effect of amortisation of borrowing cost, amortisation of premium/discount on CPs/
NCDs and interest accrued.
NOTE “41”
Revenue from contracts with customers

a. Below table provides disaggregation of the Group’s revenue from contracts with customers
(` in lakh)
Particulars
March 31, 2022 March 31, 2021
i Type of revenue
- Fee and commission income 20,141 14,976
- Branch advertisement income 5,990 2,220
- Income from advisory services - -
- Income from managerial services 15,787 10,179
Total 41,918 27,375
ii. Primary geographical market:
- Outside India 5,218 5,696
- India 36,700 21,404
Total revenue from contracts with customer 41,918 27,100
180
(` in lakh)
Particulars
March 31, 2022 March 31, 2021
iii. Timing of revenue recognition
- at a point in time upon rendering services 32,177 20,974
- over period of time upon rendering services 9,741 6,126
Total 41,918 27,100
iv. Trade receivables towards contracts with customers
- Opening Balance 2,046 2,197
- Closing Balance 2,891 2,046
v. Impairment on trade receivables towards contracts with (17) 1
customers
The unbilled revenue of ` 1,482 lakh as at March 31, 2022 (as at March 31, 2021 : ` 669 lakh) has been
considered as Contract assets, which are billable on completion of milestones specified in the contracts.
As on March 2022/2021, the Group doesn’t have any unsatisified/partially satisified performance obligation.
b. Reconciliation between revenue as per IndAS 108 Segment Reporting and revenue as per
IndAS 115 Revenue from contract with customers
(` in lakh)
March 31, 2022 March 31, 2021
Revenue reported as per IndAS 108 Segment Reporting 10,25,265 9,98,772
Less:
(a) Revenue reported as per IndAS 109-Financial Instruments 9,46,325 9,23,170
(b) Revenue reported as per IndAS 116-Leases 30,339 37,678
(c) Revenue reported as per IndAS 28-Investments in Associates 5,714 8,101
and Joint Ventures
(d) Revenue reported as per IndAS 16-Property, Plant and 914 (46)
Equipment
(e) Revenue reported as per IndAS 12-Income Taxes 55 2,494
Revenue reported as per IndAS 115 Revenue from contract with 41,918 27,375
customers
NOTE “42”
Disclosure as required by Indian Accounting Standard (Ind AS) – 24 on “Related Party

Disclosures” notified under the Companies (Indian Accounting Standard) Rules, 2015:
a) List of related parties and relationship:
Relation with related party Name of related party

Ultimate Holding Company Tata Sons Private Limited
Associates and Fellow Tata Autocomp Systems Limited
Associates Roots Corporation Limited (ceased to be related party w.e.f.
(with which the company had 25.03.2022)
transactions) Tata Projects Limited
Tata Play Limited (formerly Tata Sky Limited)
181
Relation with related party

Name of related party
TVS Supply Chain Solutions Limited
Shriram Properties Limited (ceased to be related party w.e.f. 22.12.2021)
Fincare Business Services Limited
Kapsons Industries Limited
Vortex Engineering Private Limited
Pluss Advances Technologies Private Limited (ceased to be related
party w.e.f. 06.10.2021)
Sea6 Energy Private Limited
Alef Mobitech Solutions Private Limited
Novalead Pharma Private Limited
Shriji Polymers (India) Limited (ceased to be related party w.e.f.
28.08.2020)
Lokmanaya Hospital Private Limited
Tata Technologies Limited
TEMA India Limited
Indusface Private Limited (w.e.f. 21.04.2020)
Linux Laboratories Private Limited (w.e.f. 25.01.2021)
Fincare Small Finance Bank Limited (w.e.f. 21.01.2021)
Atulaya Healthcare Private Limited (w.e.f. 20.07.2021)
Cnergyis Infotech India Private Limited (w.e.f. 10.01.2022)
Deeptek Inc, a Delaware Corporation (w.e.f. 28.02.2022)
Post Employment Benefit Tata Capital Limited Gratuity Scheme
Plan Tata Capital Limited Employees Provident Fund Trust
Tata Capital Limited Superannuation Scheme
Key Management Personnel Mr. Saurabh Agrawal - Chairman and Non-Executive Director
Mr. F. N. Subedar - Non-Executive Director
Ms. Aarthi Subramanian - Non-Executive Director
Ms. Varsha Purandare- Independent Director
Mr. Rajiv Sabharwal - Managing Director & CEO
Mr. Rakesh Bhatia- Chief Financial Officer
Ms. Sarita Kamath - Company Secretary (appointed w.e.f 01.12.2020)
Ms. Malvika Sinha - Independent Director (appointed w.e.f 01.04.2021)
Mr. Nalin M. Shah - Independent Director (retired w.e.f 31.03.2021)
Ms. Avan Doomasia - Company Secretary (resigned w.e.f 30.11.2020)
Mr. Mehernosh B. Kapadia - Independent Director (retired w.e.f
23.10.2020)
Key Management Personnel Mrs Sangeeta Sabharwal
- relatives
Subsidiaries, Associates AirAsia (India) Limited
and Joint Venture of Niskalp Infrastructure Services Limited (formerly Niskalp Energy
ultimate holding company Limited)
(with which the company
had transactions)
182
NOTE “42”

Panatone Finvest Limited
Tata Advanced Systems Limited
Tata AIG General Insurance Company Limited
Tata Asset Management Private Limited (formerly Tata Asset
Management Limited)
Tata Business Hub Limited
Tata Communications Limited
Tata Consultancy Services Limited
Tata Consulting Engineers Limited
Tata Electronics Private Limited (formerly TRIL Bengaluru Real Estate
Four Private Limited)
Tata Elxsi Limited
Tata International Limited
Tata Medical and Diagnostics Limited
Tata Teleservices Limited
Tata Trustee Company Private Limited (formerly Tata Trustee
Company Limited)
Conneqt Business Solutions Limited (formerly Tata Business Support
Services Limited) (ceased to be related party w.e.f. 16.04.2021)
Tata Consumer Products Limited (formerly Tata Global Beverages Limited)
Tata Motors Limited
Tata Steel Limited
The Indian Hotels Company Limited
The Tata Power Company Limited
Titan Company Limited
Trent Limited
Voltas Limited
Tata AIA Life Insurance Company Limited
Tata Industries Limited
Automotive Stampings and Assemblies Limited
Coastal Gujarat Power Limited
Fiora Hypermarket Limited
Ideal Ice & Cold Storage Company Limited
Indian Steel & Wire Products Ltd.
Infiniti Retail Limited
Innovative Retail Concepts Private Limited
Jaguar Land Rover Automotive plc
Maithon Power Limited
Nelco Limited
Piem Hotels Limited
Savis Retail Private Limited
Supermarket Grocery Supplies Private Limited
Tata Communications Collaboration Services Private Limited
183
NOTE “42”

a) List of related parties and relationship:
Tata Communications Payment Solutions Limited
Tata Communications Transformation Services Limited
Tata Digital Private Limited (formerly Tata Digital Limited)
Tata International DLT Private Limited
Tata Marcopolo Motors Limited
Tata Metaliks Ltd.
Tata Motors Finance Limited (formerly Sheba Properties Limited)
Tata Motors Passenger Vehicles Limited (formerly TML Business
Analytics Services Limited)
Tata Passenger Electric Mobility Limited
Tata Power Solar Systems Limited
Tata Power Trading Company Limited
Tata Steel BSL Limited (formerly Bhushan Steel Limited)
Tata Steel Utilities and Infrastructure Services Limited (formerly
Jamshedpur Utilities & Services Company Limited)
Tata Teleservices (Maharashtra) Limited
Tata Toyo Radiator Limited
TML Business Services Limited (formerly Concorde Motors (India) Limited)
TP Ajmer Distribution Limited
TP Central Odisha Distribution Limited
TP Luminaire Private Limited
TP Northern Odisha Distribution Limited
TP Southern Odisha Distribution Limited
TP Western Odisha Distribution Limited
United Hotels Limited
The Associated Building Company Limited
Air International TTR Thermal Systems Private Limited (formerly Air
International TTR Thermal Systems Limited)
Land kart Builders Private Limited
Mikado Realtors Private Limited
Tata AutoComp GY Batteries Private Limited (formerly Tata AutoComp
GY Batteries Limited)
Tata Boeing Aerospace Limited (formerly Tata Aerospace Limited)
Tata Ficosa Automotive Systems Private Limited (Tata Ficosa
Automotive Systems Limited)
Tata Lockheed Martin Aerostructures Limited
Tata Precision Industries (India) Limited
Tata Sikorsky Aerospace Limited (formerly Tara Aerospace Systems
Limited)
Sir Dorabji Tata Trust
Emerald Haven Realty Limited
Tata Chemicals Limited
Tata Investment Corporation Limited
Af-Taab Investment Company Limited (Merged with The Tata Power
Company Limited w.e.f. 15.03.2022)
184
NOTE “42”

b) Transactions with related parties
(` in lakh)
Sr Name of Company Nature of Transactions FY 21-22 FY 20-21
No
1 Tata Sons Private Income
Limited Interest Income on Finance Lease 16 42
Operating Lease rental 742 811
Expenses
BEBP Expenses 2,653 2,735
Legal and Professional fees 7 52
Staff Welfare Expenses* - -
Training Expenses* - 4
Other transactions
Sale of Fixed Asset 9 -
Finance Lease Facility repayment received 205 190
during year
Assets
Balance Receivable 3 -
Finance lease accrued income & other - (36)
receivables / (Payable)*
Finance Lease Facility Principal receivable 71 276
Liabilities
Equity shares held 3,32,458 3,32,458
Balance payable 2,658 2,735
2 Roots Corporation Expenses
Limited Staff Welfare Expenses* - -
(ceased to be related
party w.e.f. 25.03.2022) Assets
Investment in Equity - 2,062
Provision for Diminution in value of Investment - (625)
3 Tata Autocomp Systems Income
Limited Operating Lease rental 718 643
Other transactions
Security deposit received during year 21 8
Security deposit repaid / adjusted during year - 132
Assets
Investment in Equity 45,874 34,879
Liabilities
Security deposit payable 473 450
Commitments
Off balance sheet exposure 6,552 6,752
4 Tata Projects Limited Income
Interest Income on Finance Lease 852 412
Interest Income on Loan 1,137 -
Management Fees 702 6
185
NOTE “42”

(` in lakh)
No
Operating Lease rental 6,185 7,209
Other transactions
Investment in Equity during year 2,655 -
Loan given during year 50,000 -
Sale of Fixed Asset 336 61
Loan repayment received during year 8,800 -
Finance Lease Facility repayment received 1,568 769
during year
Finance Lease Facility provided during year 4,270 1,831
Assets
Finance lease accrued income & other 2,449 621
receivables
Finance Lease Facility Principal receivable 6,480 3,761
Loan accrued interest receivable 939 -
Loan Principal receivable 41,200 -
Liabilities
Commitments
5 Tata Play Limited Assets
(formerly Tata Sky Investment in Equity 5,717 5,634
Limited)
6 Fincare Business Income
Services Limited
Interest Income on Loan 316 89
Other transactions
Loan given during year - 3,732
Assets
Investment in Equity 848 849
Loan accrued interest receivable* - 1
Loan Principal receivable 2,023 3,732
7 Fincare Small Finance Income
Bank Limited
Other transactions
Investment in Equity during year 119 3,616
Assets
186
NOTE “42”

(` in lakh)
No
Loan accrued interest receivable 13 13
8 Shriram Properties Assets
Limited
party w.e.f 22.12.2021)
Investment in Equity - 3,935
Provision for Diminution in value of Investment - (1,535)
9 TVS Supply Chain Income
Solutions Limited Interest Income on Loan - 204
Invoice Discounting 47 37
Other transactions
Loan repayment received during year - 12,725
Proceeds from Divestment of Equity during - 484
year
Invoice discounted during year 4,551 4,862
Invoice discounted repayment received during 4,635 4,500
year
Assets
Invoice Discounted receivable 508 592
Invoice Discounting other receivables 2 3
Commitments
Off balance sheet exposure 492 398
10 Alef Mobitech Solutions Assets
Private Limited Investment in Equity 1,093 1,093
Investment in Preference Shares 1,712 1,712
Provision for Diminution in value of Investment (2,804) (2,804)
11 Atulaya Healthcare Assets
Private Limited Investment in Equity 1 -
Investment in Preference Shares 3,999 -
12 Cnergyis Infotech India Other transactions
Private Limited Reimbursement of Legal expenses received 33 -
Assets
Investment in Equity 5,709 -
Investment in Preference Shares 2,091 -
13 Deeptek Inc, a Delaware Assets
Corporation Investment in Preference Shares 4,340 -
14 Indusface Private Limited Expenses
Information technology expenses 13 -
187
NOTE “42”

(` in lakh)
No
Other transactions
Reimbursement of Legal expenses received - 51
Assets
Liabilities
Balance payable 4 -
15 Kapsons Industries Assets
Private Limited Investment in Equity 1 1
16 Linux Laboratories Other transactions
Private Limited Reimbursement of Legal expenses received - 11
Assets
17 Lokmanaya Hospital Assets
Private Limited Investment in Preference Shares 2,464 2,464
18 Novalead Pharma Assets
Provision for Diminution in value of Investment (792) -
19 Pluss Advanced Assets
Technologies Limited
(formerly Pluss Polymer
Private Limited) Investment in Equity - 1,532
(ceased to be related Investment in Preference Shares - 1,020
party w.e.f. 06.10.2021)
20 Sea6 Energy Private Assets
Limited Investment in Equity 2,552 2,967
21 Shriji Polymers (India) Income
Limited
(ceased w.e.f.
28.08.2020) Dividend Income - 1
22 Tata Technologies Income
Expenses
Information technology expenses 526 263
Other transactions
during year
Assets
Finance lease accrued income & other - 1
Finance Lease Facility Principal receivable* - 28
188
NOTE “42”

(` in lakh)
No
Liabilities
Balance payable 109 85
23 Tema India Limited Income
Dividend Income - 45
Other transactions
Loan repayment received during year 16 14
Assets
Loan accrued interest receivable* - 1
Loan Principal receivable 56 72
Investment in Preference Shares 300 300
24 Vortex Engineering Assets
25 Tata Capital Limited Expenses
Employees Provident Contribution to Provident Fund 1,882 1,637
Fund
Other transactions
Employees Contribution to Provident Fund 2,993 2,642
Liabilities
Statutory Liabilities 157 164
Provision for Trust’s exposure to investment in 285 285
IL & FS
Gratuity Scheme Contribution to Gratuity fund 95 356
Liabilities
Provision for Trust’s exposure to investment in 140 140
IL & FS
Superannuation Contribution to Superannuation 167 142
Scheme
Assets
Balance Receivable - 12
Liabilities
Statutory Liabilities 4 -
28 AirAsia (India) Limited Income
Interest Income on Loan 1,824 1,109
Processing Fees 100 -
Other transactions
Loan given during year 73,000 31,551
Loan repayment received during year 46,994 21,557
Assets
Loan accrued interest receivable 199 95
189
NOTE “42”

(` in lakh)
No
Revenue received in advance (99) -
Commitments
29 Niskalp Infrastructure Income
Services Limited Recovery Rent and other expenses - 1
30 Panatone Finvest Other transactions
Limited Sale of Investment during year* - -
31 Tata Advanced Systems Income
Syndication Fees - 100
Other transactions
during year
Finance Lease Facility provided during year 199 47
Assets
Finance lease accrued income & other 94 119
receivables
Commitments
32 Tata AIG General Income
Insurance Company Commission Income 591 488
Limited
Expenses
Insurance Expenses 114 71
Interest expenses on Secured NCDs 242 243
Interest expenses on Public NCDs 397 397
Assets
Balance Receivable 190 157
33 Tata Asset Management Income
Private Limited Fee Income 85 216
Portfolio Management Service 31 42
Assets
34 Tata Business Hub Income
Limited Interest Income on Finance Lease 12 -
Other transactions
Finance Lease Facility repayment received 24 -
during year
Finance Lease Facility provided during year 217 -
Assets
Finance lease accrued income & other (2) -
receivables / (Payable)
Finance Lease Facility Principal receivable 193 -
190
NOTE “42”

(` in lakh)
No
Commitments
Off balance sheet exposure 244 -
35 Tata Communications Income
Limited Interest Income on Finance Lease * - -
Expenses
Information technology expenses 527 270
Other transactions
during year
Assets
Finance lease accrued income & other (1) (1)
Liabilities
Balance payable 264 49
36 Tata Consultancy Income
Services Limited Interest Income on Finance Lease 52 35
Expenses
Information technology expenses 11,874 10,100
Other transactions
Purchase of Fixed Assets 36 35
during year
Security deposit repaid / adjusted during year 21 (48)
Assets
Balance Receivable / (Payable) (66) -
receivables
Liabilities
Balance payable 4,319 2,420
Commitments
Off balance sheet exposure 766 1,192
37 Tata Consulting Income
Engineers Ltd. Advisory Fees - 2
Expenses
Legal and Professional fees* - 5
Liabilities
Balance payable* - -
191
NOTE “42”

(` in lakh)
No
38 Tata Electronics Private Income
Limited Interest Income on Finance Lease 41 -
Other transactions
during year
Security deposit received during year 15 -
Assets
Finance lease accrued income & other 1,989 -
receivables
Liabilities
Security deposit payable 15 -
Commitments
Off balance sheet exposure 1,322 -
39 Tata Elxsi Limited Income
Interest Income on Finance Lease 12 -
Other transactions
during year
Assets
Finance lease accrued income & other 31 -
receivables
Commitments
40 Tata International Income
Other transactions
during year
Finance Lease Facility provided during year - 14
Assets
receivables
Liabilities
Equity shares held 79 79
Commitments
41 Tata Medical and Income
Diagnostics Limited Interest Income on Finance Lease * - -
192
NOTE “42”

(` in lakh)
No
Expenses
Staff Welfare Expenses* - -
Assets
receivables
Commitments
42 Tata Teleservices Income
Expenses
Communication Expenses 31 37
Electricity Expenses - 9
Rent expenses - 25
Other transactions
during year
Assets
Balance Receivable* - -
Finance lease accrued income & other (25) (4)
43 Tata Trustee Company Expenses
Limited Legal and Professional fees 32 32
44 Conneqt Business Income
Solutions Limited Interest Income on Finance Lease - 111
Management Fees* - -
party w.e.f. 16.04.2021)
Operating Lease rental - 33
Recovery Electricity expenses - 51
Recovery Rent and Guest house expenses - 165
Rental Income - 462
Expenses
Service provider charges - 10,044
Provision for bad & doubtful debts - 10
Other transactions
Sale of Fixed Asset - 44
Finance Lease Facility repayment received - 294
during year
Assets
Other Receivables - 14
193
NOTE “42”

(` in lakh)
No
receivables
Finance Lease Facility Principal receivable - 778
Liabilities
Balance payable - 3,646
Security deposit payable - 21
Commitments
Off balance sheet exposure - 692
45 Tata Consumer Income
Products Limited Interest Income on Finance Lease 8 12
Other transactions
during year
Assets
receivables
Liabilities
Commitments
46 Tata Motors Limited Income
Foreclosure Charges 18 -
Interest Income on Bonds 107 227
Other transactions
Receipts from maturity of Bonds 2,266 3,222
Finance Lease Facility repayment received 2,838 68
during year
Finance Lease Facility provided during year 8,419 424
Assets
Finance lease accrued income & other 2,531 3,829
receivables
Finance Lease Facility Principal receivable 6,009 591
Investment in Debentures 2,407 4,615
Liabilities
Commitments
194
NOTE “42”

(` in lakh)
No
47 Tata Steel Limited Income
Interest Income on Bonds 184 61
Dividend Income 4 2
Other transactions
Investment in Debentures during year 1,685 3,193
Investment in Equity during year - 5
Assets
48 The Indian Hotels Income
Company Limited Interest Income on Finance Lease 5 10
Dividend Income* - -
Profit on sale of shares of Roots Corporation 923 -
Limited
Expenses
Staff Welfare Expenses 42 13
Membership expenses 2 2
Other transactions
Investment in Equity during year 3 -
during year
Proceeds from sale of shares of Roots 2,062 -
Corporation Limited (Cost)
Reimbursement of Stamp duty on transfer of - -
shares*
Assets
Finance lease accrued income & other 2 (1)
Liabilities
Commitments
49 The Tata Power Income
Company Limited Interest Income on Finance Lease 260 153
Management Fees - 14
Other transactions
during year
Assets
195
NOTE “42”

(` in lakh)
No
receivables
Commitments
50 Titan Company Limited Income
Expenses
Interest expenses on Inter Corporate Deposit 35 -
Other transactions
Inter-Corporate Deposit received 40,000 -
Inter-Corporate Deposit repaid 40,000 -
Assets
receivables
Liabilities
Security deposit payable 13 -
Commitments
51 Trent Limited Expenses
Staff Welfare Expenses - 2
Other transactions
NSR Payment 246 178
52 Voltas Limited Expenses
Commission Expenses 34 57
Repairs and Maintenance 34 52
Dividend paid on Cumulative Redeemable 366 366
Preference shares
Other transactions
Purchase of Fixed Assets 36 2
Liabilities
Cumulative Redeemable Preference Shares 5,000 5,000
53 Tata AIA Life Insurance Income
Company Limited Commission Income 346 245
Expenses
Insurance Expenses 261 128
Other transactions
during year
196
NOTE “42”

(` in lakh)
No
Assets
receivables
Commitments
54 Tata Industries Limited Income
Syndication Fees 158 80
Other transactions
during year
Assets
Finance lease accrued income & other (12) 253
Liabilities
Commitments
55 Automotive Stampings Income
and Assemblies Limited Interest Income on Loan 207 521
Other transactions
Assets
Loan accrued interest receivable - 35
Loan Principal receivable - 4,167
Commitments
Off balance sheet exposure - 2,408
56 Coastal Gujarat Power Income
Management Fees - 2
Other transactions
during year
Assets
197
NOTE “42”

(` in lakh)
No
Commitments
Off balance sheet exposure 1,650 185
57 Fiora Hypermarket Expenses
Limited Commission Expenses 3 2
Other transactions
NSR Payment 287 269
Liabilities
Balance payable 1 -
58 Ideal Ice & Cold Income
Storage Company Interest Income on Finance Lease 3 -
Limited
Assets
receivables
Commitments
59 Indian Steel & Wire Income
Products Ltd. Interest Income on Finance Lease 9 10
Other transactions
during year
Assets
receivables
Commitments
60 Infiniti Retail Limited Income
Interest Income on Loan - 69
Expenses
Commission Expenses 39 64
Staff Welfare Expenses - 36
Other transactions
NSR Payment 1,497 1,597
Purchase of Fixed Assets - 1
during year
198
NOTE “42”

(` in lakh)
No
Security deposit repaid / adjusted during year 36 51
Assets
Balance Receivable* - -
Balance Receivable / (Payable)* - -
Liabilities
Commitments
Off balance sheet exposure 694 5,339
61 Innovative Retail Expenses
Concepts Private Staff Welfare Expenses 1 -
Limited
Liabilities
62 Jaguar Land Rover Income
Automotive plc Interest Income on Bonds 231 109
Other transactions
Investment in Debentures during year 4,754 2,097
Receipts from maturity of Bonds - 1,391
Assets
63 Maithon Power Limited Income
Other transactions
during year
Assets
Commitments
64 Nelco Limited Income
Other transactions
during year
Assets
receivables
199
NOTE “42”

(` in lakh)
No
65 Piem Hotels Limited Income
Interest Income on Loan 17 -
Management Fees 5 -
Expenses
Other transactions
Loan given during year 495 -
Loan repayment received during year 495 -
Commitments
66 Savis Retail Private Expenses
Limited Staff Welfare Expenses 1 -
67 Supermarket Grocery Income
Supplies Private Interest Income on Loan 27 -
Limited
Management Fees 30 -
Other transactions
Loan given during year 5,968 -
68 Tata Communications Expenses
Collaboration Services Communication Expenses - 2
Private Limited
69 Tata Communications Expenses
Payment Solutions Staff Welfare Expenses - 10
Limited
70 Tata Communications Income
Transformation Interest Income on Finance Lease * - 1
Services Limited
Other transactions
during year
Assets
Finance lease accrued income & other - -
Finance Lease Facility Principal receivable* - 2
71 Tata Digital Private Income
Limited Interest Income on Loan 4,307 -
Expenses
Business Promotion Expenses* - -
Other transactions
Loan given during year 1,30,000 -
Loan repayment received during year 1,30,000 -
Liabilities
200
NOTE “42”

(` in lakh)
No
72 Tata International DLTIncome
Private Limited Interest Income on Loan - 15
Other transactions
Loan repayment received during year - 225
73 Tata Marcopolo Motors Commitments
Limited Off balance sheet exposure 750 -
74 Tata Metaliks Ltd. Income
Other transactions
during year
Assets
Liabilities
Commitments
75 Tata Motors Finance Expenses
Limited Rent expenses 42 7
Other transactions
Liabilities
Balance payable 20 -
76 Tata Motors Passenger Income
Vehicles Limited Interest Income on Finance Lease 215 -
Other transactions
during year
Finance Lease Facility provided during year 2,094 -
Assets
receivables
Finance Lease Facility Principal receivable 1,953 -
Commitments
201
NOTE “42”

(` in lakh)
No
77 Tata Passenger Electric Income
Mobility Limited Interest Income on Finance Lease 16 -
Other transactions
during year
Assets
receivables
Commitments
78 Tata Power Solar Income
Systems Limited Interest Income on Finance Lease 37 26
Other transactions
during year
Assets
Commitments
79 Tata Power Trading Income
Company Limited Interest Income on Finance Lease * - 1
Other transactions
Finance Lease Facility repayment received - 1
during year
Assets
receivables*
Finance Lease Facility Principal receivable - 4
80 Tata Steel BSL Limited Income
Interest Income on Loan 2 -
Assets
Investment in Equity - 6
81 Tata Steel Utilities and Income
Infrastructure Services Interest Income on Finance Lease 19 5
Limited
Other transactions
during year
202
NOTE “42”

(` in lakh)
No
Assets
receivables*
Liabilities
Commitments
82 Tata Teleservices Expenses
(Maharashtra) Limited Communication Expenses 117 142
Liabilities
Balance payable* 2 -
83 Tata Toyo Radiator Income
Limited Interest Income on Loan 68 158
Operating Lease rental 2,086 1,922
Other transactions
Assets
Balance Receivable 2,053 -
Liabilities
Security deposit payable 1,188 1,154
Commitments
84 TML Business Services Income
Limited (formerly Foreclosure Charges 42 -
Concorde Motors
(India) Limited)
Other transactions
Sale of Fixed Asset 13 -
Commitments
85 TP Ajmer Distribution Income
Other transactions
during year
203
NOTE “42”

(` in lakh)
No
Assets
receivables*
Commitments
86 TP Central Odisha Income
Distribution Limited Interest Income on Finance Lease 30 -
Other transactions
during year
Assets
Commitments
87 TP Luminaire Private Income
Limited Interest Income on Loan 642 521
Processing Fees - 56
Other transactions
Assets
Commitments
Off balance sheet exposure - 2,105
88 TP Northern Odisha Income
Other transactions
during year
Assets
receivables
Commitments
204
NOTE “42”

(` in lakh)
No
89 TP Southern Odisha Income
Distribution Limited Operating Lease rental* - -
Commitments
90 TP Western Odisha Income
Other transactions
during year
Assets
receivables
Commitments
91 United Hotels Limited Income
Expenses
Staff Welfare Expenses 1 -
Other transactions
during year
Assets
receivables
Commitments
92 The Associated Income
Building Company Interest Income on Loan 16 1
Limited
Other transactions
Loan given during year - 300
Assets
Loan Principal receivable - 256
Commitments
93 Air International TTR Income
Thermal Systems Operating Lease rental 29 29
Private Limited
Assets
205
NOTE “42”

(` in lakh)
No
Liabilities
Commitments
94 Land kart Builders Income
Private Limited Referral Fees 2 -
Assets
95 Mikado Realtors Private Income
Limited Interest Income on Loan* - 283
Management Fees - 2
Other transactions
Commitments
96 Tata AutoComp GY Income
Batteries Private Interest Income on Loan 6 36
Limited
Management Fees - 4
Other transactions
97 Tata Boeing Aerospace Income
Other transactions
during year
Assets
Commitments
98 Tata Ficosa Automotive Income
Systems Private Interest Income on Loan 25 4
Limited
Invoice Discounting - 65
Management Fees - 3
Other transactions
Loan repayment received during year 2,400 3
Assets
206
NOTE “42”

(` in lakh)
No
99 Tata Lockheed Martin Income
Aerostructures Limited Interest Income on Finance Lease 2 5
Other transactions
during year
Assets
100 Tata Precision Income
Industries (India) Interest Income on Loan 3 5
Limited
Management Fees 1 -
Other transactions
Loan given during year 96 -
Assets
Loan accrued interest receivable* 1 -
Loan Principal receivable 96 23
101 Tata Sikorsky Income
Aerospace Limited Interest Income on Finance Lease 9 2
Other transactions
during year
Assets
receivables
Commitments
102 Sir Dorabji Tata Trust Expenses
CSR Expenditure - 50
103 Emerald Haven Realty Income
Limited Interest Income on Loan 603 -
Other transactions
Assets
Loan accrued interest receivable 59 -
Loan Principal receivable 4,183 -
104 Tata Chemicals Limited Liabilities
207
NOTE “42”

(` in lakh)
No
105 Tata Investment Liabilities
Corporation Limited Equity shares held 7,720 7,720
106 Af-Taab Investment Liabilities
Company Limited Equity shares held 233 233
(Merged with The
Tata Power Company
Limited w.e.f.
15.03.2022)
107 Mrs Sangeeta Expenses
Sabharwal (Relative of Dividend paid on Cumulative Redeemable 4 4
KMP) Preference shares
Liabilities
Cumulative Redeemable Preference Shares 50 50
108 Key Management Expenses
Personnel (KMP) Remuneration to KMP
Short Term Employee Benefits 1,364 1,025
Post Employment Benefits 42 55
Other Long Term benefits -
Termination benefits - 40
Director Sitting Fees & Commission
Director Sitting Fees & Commission (on 129 126
payment basis)
Preference shares
Other Transactions
Issue of Cumulative Redeemable Preference - -
Shares
Interest paid on application money - -
Redemption of Cumulative Redeemable - 30
Preference shares
Premium paid on redemption of Cumulative - -
Redeemable Preference shares
Liabilities
Equity Shares held 35 35
Cumulative Redeemable Preference shares 100 183
held
Share based payments (No. of Shares)
Options granted 22,00,287 20,70,000
Options exercised - -
Total Options granted till date 86,55,498 64,55,211
Total Options exercised till date 7,60,211 7,60,211
* Amount less than ` 50,000/-
208
Note 43: Fair values of financial instruments

See accounting policy in Note 2(xiii)
A. Valuation models
The Group measures fair values using the following fair value hierarchy, which reflects the
significance of the inputs used in making the measurements:
a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that
the Group can access at measurement date
b) Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for
the asset or liability, either directly or indirectly; (i.e. derived from prices). This category includes
instruments valued using: quoted market prices in active markets for similar instruments; quoted
prices for identical or similar instruments in markets that are considered less than active; or other
valuation techniques in which all significant inputs are directly or indirectly observable from market
data.
c) Level 3 inputs are unobservable inputs for the valuation of assets or liabilities that the Group
can access at measurement date. This category includes all instruments for which the valuation
technique includes inputs that are not observable and the unobservable inputs have a significant
effect on the instrument’s valuation. This category includes instruments that are valued based on
quoted prices for similar instruments for which significant unobservable adjustments or assumptions
are required to reflect differences between the instruments. Valuation techniques include net present
value and discounted cash flow models, income approach, comparison with similar instruments
for which observable market prices exist, option pricing models and other valuation models.
Assumptions and inputs used in valuation techniques include risk-free returns, benchmark interest
rates and credit spreads used in estimating discount rates, bond and equity prices, foreign currency
exchange rates, equity and equity index prices and expected price volatilities and correlations.
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price
that would be received to sell the asset or paid to transfer the liability in an orderly transaction
between market participants at the measurement date.
The Group uses widely recognised valuation models to determine the fair value of financial
instruments, such as forward rate agreement, that use only observable market data and require little
management judgement and estimation. Observable prices or model inputs are usually available in
the market for listed equity securities. The availability of observable market prices and model inputs
reduces the need for management judgement and estimation and also reduces the uncertainty
associated with determining fair values.
For more complex instruments, the Group uses proprietary valuation models, which are usually
developed from recognised valuation models. Some or all of the significant inputs into these
models may not be observable in the market, and may be derived from market prices or rates
or estimated based on assumptions. Valuation models that employ significant unobservable
inputs require a higher degree of management judgement and estimation in the determination of
fair value. Management judgement and estimation are usually required for the selection of the
appropriate valuation model to be used, determination of expected future cash flows on the financial
instrument being valued, determination of the probability of counterparty default and prepayments,
determination of expected volatilities and correlations and selection of appropriate discount rates.
Fair value estimates obtained from models are adjusted for any other factors, such as liquidity
risk or model uncertainties, to the extent that the Group believes that a third party market
participant would take them into account in pricing a transaction. Fair values reflect the credit
risk of the instrument and include adjustments to take account of the credit risk of the Group
and the counterparty where appropriate. Model inputs and values are calibrated against historical
209
data, where possible, against current or recent observed transactions in different instruments. This
calibration process is inherently subjective and it yields ranges of possible inputs and estimates of
fair value, and management uses judgement to select the most appropriate point in the range.
Discounting of the cash flows of financial asset/ financial liability for computing the fair value of such
instrument: the future contractual cash flows of instrument over the remaining contractual life of the
instrument are discounted using comparable rate of lending/borrowing as applicable to financial
asset/ financial liability in the month of reporting for a similar class of instruments. For shorter
tenure financial assets such as channel finance, the remaining tenure is assumed to be six months.
Derivatives held for risk management :

The Group enters into structured derivatives to mitigate the currency exchange risk. Some of these
instruments are valued using models with significant unobservable inputs, principally expected long-
term volatilities and expected correlations between different underlyings.
B. Valuation framework
The Group has a established a policy for the measurement of fair values addressing the
requirement to independently verify the results of all significant fair value measurements. Specific
controls include:
1) verification of observable pricing basis actual market transactions;
2) re-performance of model valuations;
3) a review and approval process for new models and changes to model;
4) annual calibration and back-testing of models against observed market transactions;
5) analysis and investigation of significant annual valuation movements; and
6) review of significant unobservable inputs, valuation adjustments and significant changes to the fair
value measurement of Level 3 instruments compared with the previous year.
When third party information, such as valuation agency report is used to measure fair value, the
Group assesses the documents and evidence used to support the conclusion that the valuations
meet the requirements of Ind AS. This includes:
1) understanding how the fair value has been arrived at, the extent to which it represents actual
market transactions and whether it represents a quoted price in an active market for an identical
instrument;
2) when prices for similar instruments are used to measure fair value, how these prices have been
adjusted to reflect the characteristics of the instrument subject to measurement; and
3) if a number of quotes for the same financial instrument have been obtained, then how fair value has
been determined using those quotes.
210
C. Financial assets and liabilities

The carrying value of financial instruments by categories as at March 31, 2022 is as follows:
(` in lakh)
Fair value Fair Value Amortised Total Carrying
through Profit through Other cost Value
Particulars
or Loss Comprehensive
Income
Financial Assets:
Cash and cash equivalents - - 2,08,162 2,08,162
Bank balances other than Cash and - - 5,420 5,420
cash equivalents above
Derivative assets - 3,521 - 3,521
Trade receivables - - 3,233 3,233
Other receivables - - 22 22
Loans including credit substitutes 2,519 36,777 89,72,840 90,12,136
Investments (Other than associates) 4,26,800 16,152 2,35,056 6,78,008
Other financial assets - - 25,059 25,059
Total 4,29,319 56,450 94,49,792 99,35,561
Financial Liabilities:
Derivative liabilities - 34,305 - 34,305
Payables - - 1,02,597 1,02,597
Debt securities - - 40,69,140 40,69,140
Borrowings - - 38,63,992 38,63,992
Subordinated liabilitites - - 6,88,845 6,88,845
Lease liabilities - - 12,345 12,345
Other financial liabilities - 1,27,750 1,27,750
Total - 34,305 88,64,669 88,98,974
(` in lakh)
Particulars
Income
Financial Assets:
Cash and cash equivalents - - 2,02,691 2,02,691
Bank balances other than Cash and - - 2,372 2,372
cash equivalents above
Derivative assets - 1,154 - 1,154
Trade receivables - - 2,663 2,663
Other receivables - - 7 7
211
(` in lakh)
Particulars
Income
Loans including credit substitutes 1,000 85,514 72,76,121 73,62,635
Investments (Other than associates) 2,53,480 6,575 1,22,273 3,82,328
Other financial assets - - 57,470 57,470
Total 2,54,480 93,243 76,63,597 80,11,320
Payables - - 80,974 80,974
Debt securities - - 31,93,375 31,93,375
Borrowings - - 31,22,451 31,22,451
Subordinated liabilitites - - 5,90,482 5,90,482
Lease liabilities - - 10,243 10,243
Other financial liabilities - - 1,44,972 1,44,972
Total - 21,555 71,42,497 71,64,052
Investment in associates:
The Group has elected to measure Investment in associates at cost and accordingly the
requirement of disclosure of fair value of the instrument under Ind AS 107 does not apply.
The following table summarises financial assets and liabilities measured at fair value on a recurring
basis:
Particulars Level 1 Level 2 Level 3 Total
Financial Assets:
Investments
Mutual fund units - 3,06,096 - 3,06,096
Equity Shares 58,882 - 28,121 87,003
Structured product - 2,193 - 2,193
Multi Asset Fund - - 4,850 4,850
Alternate Investment Funds - - 2,806 2,806
Venture Capital Fund - - 22,443 22,443
Preference shares 1,392 - - 1,392
Security Receipts - 17 - 17
Debt securities 16,152 - - 16,152
Loans including credit substitutes * - - 39,296 39,296
Derivative asset - 3,521 - 3,521
Total 76,426 3,11,827 97,516 4,85,769
212

Total - 34,305 - 34,305

Financial Assets:
Investments
Mutual fund units - 1,52,557 - 1,52,557
Equity Shares 11,552 - 61,079 72,631
Structured product - 2,210 - 2,210
Multi Asset Fund - - 3,581 3,581
Alternate Investment Funds - - 2,412 2,412
Venture Capital Fund - - 17,888 17,888
Preference shares 2,111 - - 2,111
Security Receipts - 90 - 90
Debt securities 6,575 - - 6,575
Loans including credit substitutes - - 86,514 86,514
Derivative asset - 1,154 - 1,154
Total 20,238 1,56,011 1,71,474 3,47,723

Total - 21,555 - 21,555
The following table summarises disclosure of fair value of financial assets and liabilities measured
at amortised cost:
(` in lakh)
Particulars
Carrying Value Fair value Carrying Value Fair value
Financial Assets at amortised cost:
Loans including credit substitutes 89,72,840 91,45,796 72,76,121 75,19,504
Investments (Other than in Associates) 2,35,056 2,31,873 1,22,273 1,22,666
Total 92,07,896 93,77,669 73,98,394 76,42,170
Financial Liabilities at amortised cost:
Borrowings (includes debt securities and 86,21,977 86,46,262 69,06,308 69,08,797
subordinated liabilities)
Total 86,21,977 86,46,262 69,06,308 69,08,797
Carrying amounts of cash and cash equivalents, trade receivables, loans and trade and other
payables as on March 31, 2022 and March 31, 2021 approximate the fair value because of their
short-term nature. Difference between carrying amounts and fair values of bank deposits, other
213
financials assets, other financial liabilities and borrowings subsequently measured at amortised cost
is not significant in each of the years presented.
Fair value of the Financial intruments measured at amortised cost

The fair value of loans given is based on observable market transactions, to the extent available.
Wherever the observable market transactions are not available, fair value is estimated using
valuation models, such as discounted cash flow techniques. Input into the valuation techniques
includes interest rates, prepayment rates, primary origination or secondary market spreads. Input
into the models may include information obtained from other market participants, which includes
observed primary and secondary transactions.
To improve the accuracy of the valuation estimate for retail and smaller commercial loans,
homogeneous loans are grouped into portfolios with similar characteristics such as product.
The fair value of borrowings from banks is estimated using discounted cash flow techniques,
applying the rates that are offered for loans of similar maturities and terms.
T bills and Governemnt securities are valued based on market quotes.
D The following table summarises valuation techniques used to determine fair value, fair value
measurements using significant unobservable inputs (Level 3) and valuation inputs and
relationship to fair value:
(` in lakh)
Financial Fair value Fair value Valuation technique(s) Significant Relationship of
instruments hierarchy and key input(s) unobservable unobservable inputs
As at As at input(s) to fair value
March 31, March 31,
2022 2021
Equity Shares - 28,121 61,079 Level 3 1. Valuation is based on 1. Annual revenue 1. The estimated
unquoted Net asset value is based on the fair value
method which is earnings for the would increase
based on the asset latest financial (decrease) if the
and liabilities values year annual revenue
as per the Latest growth were higher
financial statements of 2. LTM EV to (lower)
the investee company Revenue 2. If the LTM EV/
Multiple : 10.5x Gross Premium
2. Valuation is based on (Previous year: multiples/P/BV
market approach” LTM EV to Multiples/Revenue
Gross Premium multiple is higher/
Multiple : 3.25x lower while all of
, LTM Price the other variables
to BV Multiple were held constant,
: 5.50x, LTM the carrying
EV to Revenue amount of the
Multiple : 12.0x) investment would
increase/decrease.
Compulsorily 2,519 1,000 Level 3 Valuation is based on Transaction price at Higher/(lower) the
Convertible the transaction price inception transaction price
Debenture at inception (including higher/(lower) the fair
interest accrued) due value of loans
to illiquid nature of
Investment and the
immaterial option value.
Loans 36,777 85,514 Level 3 Discounted cash flows. Discounting rate : Higher the discounting
9% (previous year rate lower the fair
: 10%) and future value of loans
cash flows.
214
(` in lakh)
Financial Fair value Fair value Valuation technique(s) Significant Relationship of
instruments hierarchy and key input(s) unobservable unobservable inputs
As at As at input(s) to fair value
March 31, March 31,
2022 2021
Alternative 2,806 2,412 Level 3 Net asset value Net Asset Value Higher the Net Asset Value
Investment Fund higher the fair value of
unquoted units
Multi Asset Fund 4,850 3,581 Level 3 Net asset value Net Asset Value Higher the Net Asset Value
higher the fair value of
unquoted units
Venture capital fund 22,443 17,888 Level 3 Net asset value Net Asset Value Higher the Net Asset Value
higher the fair value of
unquoted units
Financial Assets at 94,997 1,70,474
FVTPL/FVTOCI
Certain listed equity investments are carried at Nil value on account of low trading. Fair value of the
unquoted equity investment received upon settlement of loan has been considered at Nil value as the
company is under liquidation process.
E Sensitivity disclosure for level 3 fair value measurements:
Particulars Unobservable Sensitivity Impact of change in rates on Total Comprehensive

input Income
Favourable Unfavourable Favourable Unfavourable
Equity Shares Net Asset 1% 315 (305) 362 (462)
Value and other
valuation input
Compulsorily Transaction price 1% 25 (25) 10 (10)
Convertible Debenture
Loans Discounting rate 1% 374 (367) 869 (852)
Alternative Investment Net Asset Value 1% 8 (8) 4 (4)
Fund
Multi Asset Fund Net Asset Value 1% 49 (49) 36 (36)
Venture capital fund Net Asset Value 1% 224 (224) 179 (179)
215
E Level 3 fair value measurements

The following table shows a reconciliation from the beginning balances to the ending balances for
fair value measurements in Level 3 of the fair value hierarchy:
(` in lakh)
FVTOCI FVTPL FVTPL Total
Particulars
Loans Loans Investments
As at April 1, 2021 85,514 1,000 84,960 1,71,474
Total gains or losses:
recognised in profit or loss - - 8,999 8,999
in OCI (156) - - (156)
Purchases 5,433 1,519 510 7,462
Settlements (54,014) - (2,225) (56,239)
Foreign currency transalations 776 776
Transfers into Level 3 - - - -
Transfers out of Level 3 - - (34,800) (34,800)
As at March 31, 2022 36,777 2,519 58,220 97,516
(` in lakh)
FVTOCI FVTPL FVTPL Total
Particulars
Loans Loans Investments
As at April 1, 2020 67,696 - 33,074 1,00,770
Total gains or losses: - - - -
in profit or loss - - 24,051 24,051
in OCI 483 - - 483
Purchases 31,285 - 28,227 59,512
Settlements (13,950) - - (13,950)
Foreign currency transalations (392) (392)
Transfers into Level 3 - 1,000 - 1,000
Transfers out of Level 3 - - - -
As at March 31, 2021 85,514 1,000 84,960 1,71,474
216
NOTE “44”
Risk Management Framework

A Introduction;
As a financial institution, Group is exposed to various types of risks namely credit risk, liquidity
risk, market risks, operational risk, strategic risk (including emerging & external risks) and
compliance & reputation risk. We have adopted a holistic and data driven enterprise level risk
management approach which includes monitoring both internal and external indicators.
We as an organization periodically adjust our strategy in cognizance with industry risk dynamics
and emergence of new challenges and opportunities.
The purpose of risk management is the creation and protection of value. Group’s risk
management framework has been laid down with long term sustainability and value creation
keeping in mind:
l Build profitable and sustainable business with conservative risk management approach.
l Have risk management as an integral part of the organization’s business strategy.
l Undertake businesses that are well understood and within acceptable risk appetite.
l Manage the risks proactively across the organization.
l Adopt best risk management practices with resultant shareholder value creation and
increased stakeholder confidence.
l Develop a strong risk culture across the organization.
The risk management practices of Tata Capital and its subsidiaries are compliant with ISO 31000:
2018 which is the international standard for risk management that lays down principles, guidelines
and framework for risk management in an organisation.
B Group’s Risk Management framework for measuring and managing risk:

Risk management framework:
Group’s Risk Management is an integral part of all organizational activities. The structured
approach contributes to consistent and comparable results along with customization of external
and internal objectives. Important pillars of the risk management approach are developing a
strong risk management culture within Tata Capital and subsidiaries through alignment of risk by
creating, preserving and realizing value.
A comprehensive Enterprise Risk Management (“ERM”) Framework has been adopted across
Group which uses defined Key Risk Indicators based on quantitative and qualitative factors.
We have implemented two-dimensional quantitative data management tool - Heat Map which
enables management to have a comprehensive view of 9 identified key risk areas based on their
probability and impact.
The 9 categories of risks identified and monitored by the Group are Credit Risk, Market Risk,
Process, People, Outsourcing, Technology, Business Continuity, Cyber Security and Reputation
risk.
217
Nature of Risk Framework Governing Committees

Credit Risk Enterprise Risk Management Risk Management Committee of the
Board
Various Credit Policies, Portfolio
review and trigger monitoring Investment Credit Committee of the
Board
Credit Committees
Market Risk Enterprise Risk Management Risk Management Committee of the
Board
Asset Linked Market Policy
Asset Liability Management
Committee of the Board
Process Risk Operational Risk Policy Operational Risk Management
Committee
People Risk Operational Risk Policy Risk Management Committee of the
Board
HR Policies
Operational Risk Management
Committee
Outsourcing Operational Risk Policy Risk Management Committee of the
Board
Outsourcing Policy
Operational Risk Management
Committee
Technology Operational Risk Policy Risk Management Committee of the
Board
Information Technology Policy
IT Strategy Committee of the Board
Business Continuity Operational Risk Policy Operational Risk Management
Committee
Business Continuity Management
Policy
Cyber Security Information & Cyber Security Policy Risk Management Committee of the
Board
IT Strategy Management Committee
of the Board
Reputational Risk Enterprise Risk Management Risk Management Committee of the
Framework Board
Ethics Policy
POSH Policy
Tata Code of Conduct
The Board is assisted by Risk Management Committee of the Board (‘RMC’) and is supported by
various Board and Senior management committees as part of the Risk Governance framework to
ensure that the Group has sound system of risk management and internal controls.
Board level committees

Risk Management Committee of the Board (RMC): The purpose of the Committee is to assist the
Board in its oversight of various risks (i) Credit Risk (ii) Market and Liquidity Risk (iii) Operational
Risk (Process, People, Outsourcing, Technology, Business Continuity and Fraud) (iv) Strategic
Risks (including emerging and external risks) (v) Reputation Risk (vi) Information Security & Cyber
Security Risk.
218
Investment Credit Committee of the Board (ICC): Provides guidance on nature of investments
that shall be undertaken, and approve credit limits for various counterparties, where exposures in
aggregate exceed a certain level.
Asset Liability Management Committee of the Board (ALCO): ALCO reviews the Liquidity Risk
and Interest Rate Risk on a regular basis and suggests necessary actions based on its view and
expectations on the liquidity and interest rate profile.
IT Strategy Committee: Reviews and approves IT strategy and policies. Monitors IT resources
required to achieve strategic goals and ensure that maximum value is delivered to business.
The Group’s risk management policies are established to identify and analyse the risks faced
by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to
limits. The risk management policies and systems are reviewed regularly to reflect changes in the
market conditions and the activities of the Group. The Group, through its training and management
standards and procedures, aims to develop a disciplined and constructive control environment in
which all employees understand their roles and obligations. The Risk Management Committee
reviews risk management policies of the Group pertaining to credit, market, liquidity and operational
risks. It oversees the monitoring of compliances with the risk management policies and procedures
and reviews the adequacy of the risk management framework in relation to the risks faced by the
Group.
The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes
both regular and ad-hoc reviews of risk management controls and procedures, the results of which
are reported to the Audit Committee.
Senior Management Committees

a) Management Credit Committee (MCC): The members of committee are senior management
of the Group as defined in the prevailing delegation of authority. It recommends proposal
including review to ICC / Board for loan facilities falling beyond assigned Delegation of Power
and Authority. The committee is governed as per the delegation of authority applicable to the
Group.
b) Operational Risk Management Committee (ORMC): ORMC is the oversight committee for
ensuring effective management of operational risks. The committee reviews and approves the
following:
l Operational risk management policy and including amendments if any.
l Insurance management framework.
l Corrective actions on operational risk incidents, based on analysis of the Key Risk
Indicators (KRIs), operational risk process reviews, etc.
l Operational risk profile based on the KRIs which are beyond the tolerance limit
c) Fraud Risk Management Committee (FRMC): An independent Fraud Risk Management
Committee (FRMC) comprising of top management representatives has been constituted that
reviews the matters related to fraud risk and approves/recommends actions against frauds.
Business Unit Level Committees

There are various committees that exist at the business level for credit sanctions, monitoring and
reviews such as Credit Committee (CC), Credit Monitoring Committee (CMC), Credit & Collection
review, Retail Risk Review (RRR) for retail business.
219
C Group’s Risk Management Approach for handling various type of risks

a) Credit risk;
The Credit Risk management framework is based on the philosophy of First and Second line
of Defence with underwriting being responsibility of Credit department and controls around
policies and processes are driven by Risk department. Each process and business verticals
have Credit underwriting, Risk analytics, Policy and Operational Risk unit. Delegation of
Authority is defined based on value at risk and deviation matrix as approved by the Board.
The Group has reviewed Credit policies from time to time based on macroeconomic scenarios,
pandemic and government scheme/grants, we have robust early warning signals process to
ensure resilience in the policy framework for adopting changing business scenario and to
mitigate various business risks.
Group’s approach to rigorous portfolio review driven by analytics helps us to take corrective
action proactively and to have a resilient underwriting policy and processes for Retail, SME
and Corporate portfolio.
Group has a strong fraud risk and vigilance framework to weed out fraudulent customers from
system at the time of origination with support of analytical tools. Identified fraud cases in the
portfolio are reviewed basis detailed root cause analysis and reported to regulator. Process
improvements based on root cause analysis are implemented to control such foreseen losses
in future.
Introduction of new products are based on market potential, Operational risk, Credit risk and
Compliance risks. All new product launches are signed off by Risk department to mitigate key
risks arising while developing strategy around launching of new product. All innovative process
changes/digitization goes through rigour of risk review and highlighting risk associated with
change of the process and mitigants around the same. All introduction of new products goes
through a complete governance process and are approved by Board/respective committees.
Measures taken to recover from COVID pandemic:

The Group is taking following measures to recover from COVID pandemic for sustainable
growth and maintaining a diversified and resilient portfolio.
i. Increased engagement with the customers through dedicated relationship manager and
collection team
ii. Policy intervention by way of sector and geography analysis based on pandemic impact
iii. Strengthened credit assessment process
iv. Realigning the product suite by way of differentiated product mix offering to different
segments of borrowers
v. Increased geographical diversification of portfolio
vi. Enhanced portfolio and account level monitoring measures
vii. Digitization of key processes enabling better and real time portfolio monitoring.
viii. Strengthening of the collection infrastructure
ix. Review of one-time restructured loans and CGTMSE government guarantee portfolio
b) Market risk;
Market risk is risk due to change in market prices – e.g. interest rates, equity prices, foreign
exchange rates and credit spreads, but not relating to changes in the obligor’s/issuer’s credit
standing and will affect the Group’s income or the value of its holdings of financial instruments.
220
The objective of the Group’s market risk management is to manage and control market risk
exposures within acceptable risk tolerances levels to ensure the solvency and minimum
volatility while optimising the balance between profitability and managing associated risks.
Under Liquidity Risk Management (LRM) framework for the Group, ALCO sets up limits for
each significant type of risk/aggregated risk with liquidity being a primary factor in determining
the level of limits. The monitoring of risk limits defined as per ALM policy is done by ALCO
on regular basis. The Group has Asset Liability Management (ALM) support group prescribed
by RBI which meets on regular basis to ensure internal controls and reviews the liquidity risk
management of the group.
Interest rate risk:

Interest rate risk is measured through Interest rate sensitivity report where gaps are being
monitored classifying all rate sensitive assets and rate sensitive liabilities into various time
period categories according to earliest of contracted/behavioural maturities or anticipated re-
pricing date. The Group monitors interest rate risk through traditional gap and duration gap
approaches on a monthly basis. The interest rate risk limits are approved by the ALCO.
Refer Note No 45 .C.i for summary on sensitivity to a change in interest rates as on 31st
March 2022.
Currency Risk
The Group is exposed to currency risk arising due to external commercial borrowings. The
foreign currency loan in form of external commercial borrowing (ECB) raised by the Group are
fully hedged basis.
The hedging policy as approved by the Asset Liability Committee (ALCO) prescribes the
hedging of the risk associated with change in the interest rates and fluctuation of foreign
exchange rates. Counter party risk is reviewed periodically in terms of exposure to various
counter parties.
The Group’s hedging policy guides effective hedging relationships to be considered as hedges
as per the relevant Ind AS. Hedge effectiveness is determined at the inception of the hedge
relationship and through periodic prospective effectiveness assessments to ensure that an
economic relationship exists between the hedged item and hedging instrument. The Group
enters into hedge relationships where the critical terms of the hedging instrument match
with the terms of the hedged item, and so a qualitative and quantitative assessment of
effectiveness is performed. All hedges entered by the Group are cash flow hedges.
Refer Note No 45.C.ii & iii for gist of foreign currency risk exposure as on 31st March 2022.
Equity price risk

The Group investments in equity carry a risk of adverse price movement. To mitigate pricing
risk emerging from investments in equity, the Group intermittently observes the performance of
sectors and measures MTM gains/losses as per applicable accounting policy of the group.
Liquidity risk;
Liquidity Risk is the risk that a Group will encounter difficulties in meeting its short-term
financial obligations due to an asset– liability mismatch or interest rate fluctuations. The
liquidity risk is being managed as per ALM policy which has following key elements:
i) ALCO sets the strategy for managing liquidity risk commensurate with the business
objectives;
ii) ALCO has set various gap limits for tracking liquidity risk.
221
iii) The ALM policy is being reviewed on annual basis, including the risk tolerance, process
and control. ALCO monitors the liquidity and interest rate gaps on regular basis.
iv) Group manages the liquidity position on a day-to-day basis and reviews daily reports
covering the liquidity position. The regulatory compliance to the liquidity risk related limits
are being ensured.
v) The group is fully complied to the Liquidity Coverage Ratio (LCR) framework as
mandated by RBI.
Group’s liquidity risk management strategy are as follows:
a. Maintaining a diversified funding through market and bank borrowings resources such
as debentures, commercial papers, subordinated debt, perpetual debt, Inter-corporate
deposits (ICD’s), overdraft and bank term loans. Unused bank lines as well as High
Quality Liquid Assets (HQLA) maintained under LCR framework constitute the main
liquidity back up to meet the contingency funding plan. Additionally, based on Market
scenario, the Group also maintains a portfolio of highly liquid mutual fund units.
b. The Group complies with the ALM guidelines and submits various returns and
disclosures in accordance with the regulatory guidelines.
c. The Group carries out liquidity stress testing based on the cash flows and results are
reported to ALCO on periodic basis. The Group has contingency funding plan in place
which monitors the early warning signals arising out of company specific and market
wide liquidity stress scenarios.
The Group has honoured all its debt obligations on time. Based on liquidity risk assessment,
cash-flows mismatches are within the stipulated regulatory limits. The Group has been
successful in maintaining the adequate liquidity by raising fresh/renewal of bank lines, regular
access to capital market and financial institution under the various schemes promulgated by
RBI to raise medium to long term funds. Owing to the above measures, the Group has not
seen a rise in its liquidity risk.
Refer Note No 45.B for the summary of Maturity analysis for Group’s financial liabilities and
financial assets as on 31st March 2022.
c) Operational Risk;
Operational Risk has been defined as “The risk of loss resulting from inadequate or failed
internal processes, people and systems or from external events “The risk of direct or
indirect potential loss arising from a wide variety of causes associated with the Group’s
processes, personnel, systems, or from external factors other than strategic and reputation
risk Management of operational risk forms an integral part of Group’s enterprise wide risk
management systems. The organisation thrives towards incremental improvements to
its operational risk management framework to address the dynamic industry landscape.
Clear strategies and oversight by the Board of Directors and senior management, a strong
operational risk management culture, effective internal control and reporting and contingency
planning are crucial elements of Group’s operational risk management framework.
The operational risk team monitors and reports key risk indicators (“KRI”) and KRI exceptions.
Suitable risk mitigation actions are taken wherever required to curtail the potential risk at the
acceptable levels.
ORMC meets periodically to review the operational risk profile of the organization and oversee
the implementation of the risk management framework and policies.
FRMC meets periodically to review matters relating to fraud risk, including corrective and
remedial actions as regards people and processes.
222
Group has a Business Continuity Planning “BCP” framework in place, to ensure uninterrupted
business operations in case any disruptive event occurs. The Group immediately activated its
Business Continuity Plan (BCP) during this time of COVID 19 pandemic. Group continues to
seamlessly carry out normal operations hence addressing the risk associated with occurrence
of the pandemic.
Group has an IT Disaster Recovery Planning “IT-DRP” which provides the technology
framework to continue day-to-day operations using secondary/back-up systems when primary
system fails. It also protects the organisation against loss of computer-based data and
information.
Cyber Security Risk

Various measures are adopted to effectively protect the Group against phishing, social media
threats and rogue mobile. During COVID pandemic Group ensured seamless accessibility of
critical systems through virtual private network (VPN), thereby minimizing the risk of security/
data breaches and cyber-attacks.
Group has adopted “Framework for Improving Critical Infrastructure Cyber Security” published
by the National Institute of Standards & Technology (NIST) and complies with regulatory
guidelines.
d) Regulatory and Compliance Risk

Regulatory compliances are handled by Finance team, Treasury and Business teams in
consultation with Group Compliance team. Statutory compliances are handled by Group
Secretarial team, Administrative and people process related compliances are handled by
Administration & HR departments.
Additionally, Risk team coordinates for Special Mention Accounts (SMA) and Fraud reporting in
line with regulatory guidelines.
As per regulatory requirements, required policies are adopted, modified and rolled from time to
time. Compliance to the defined policies is strictly adhered to.
note “45”:
risk management review
This note presents information about the Group’s exposure to following risks and its management of capital.
For information on the financial risk management framework, see Note 44
A. Credit risk
i. Credit quality analysis
ii. Collateral held and other credit enhancements
iii. Amounts arising from ECL
iv. Concentration of Credit Risk
B. Liquidity risk
i. Maturity analysis for financial liabilities and financial assets
ii. Financial assets position pledged/ not pledged
C. Market risk
i. Exposure to interest rate risk – Non-trading portfolios
ii. Exposure to currency risks – Non-trading portfolios
iii. Foreign currency risk exposure- Subsidiaries
223
A. Credit risk
For the definition of credit risk and information on how credit risk is mitigated by the Group, see
Note 44.
i. Credit quality analysis
The following table sets out information about the credit quality of financial assets measured at
amortised cost. The amounts in the table represent gross carrying amounts for financial assets. For loan
commitments, the amounts in the table represent the amounts committed.
Explanation of the terms: 12-month ECL, lifetime ECL and credit-impaired are included in Note 2(xiii).
i) Loans by Division
1) Days past due based method implemented by Group for credit quality analysis of Loans
a) The table below shows the credit quality and the maximum exposure to credit risk based on the
days past due and year-end stage classification of Loans. The amounts presented are gross of
impairment allowances:
(` in lakh)
Outstanding Gross As at March 31, 2022 As at March 31, 2021
Loans Count Stage 1 Stage 2 Stage 3 Total Count Stage 1 Stage 2 Stage 3 Total
Days past due
Zero overdue 8,05,940 85,78,607 3,42,939 13,082 89,34,628 6,49,655 69,67,090 1,25,961 11,412 71,04,463
1-29 days 30,313 96,032 30,058 4,416 1,30,506 35,333 1,59,091 3,710 2,013 1,64,814
30-59 days 15,882 - 73,911 7,774 81,685 19,876 - 1,13,862 1,329 1,15,191
60-89 days 8,959 - 32,334 11,518 43,852 16,760 - 74,951 3,717 78,668
90 or more days 48,669 - - 1,40,988 1,40,988 46,400 - - 1,74,913 1,74,913
Total 9,09,763 86,74,639 4,79,242 1,77,778 93,31,659 7,68,024 71,26,181 3,18,484 1,93,384 76,38,049
Note: Gross carrying amount does not include loan commitments ` 10,00,024 lakh (As on March 31,
2021: ` 590,749 lakh)
b)
(` in lakh)
Impairment As at March 31, 2022 As at March 31, 2021
allowance on Loans Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Days past due
Zero overdue 53,490 74,348 8,852 1,36,690 46,068 21,855 4,378 72,301
1-29 days 4,272 8,707 2,482 15,461 7,516 1,624 775 9,915
30-59 days - 15,984 3,927 19,911 - 24,790 709 25,499
60-89 days - 19,987 5,212 25,199 - 31,953 2,114 34,067
90 or more days - - 1,05,764 1,05,764 - - 1,18,584 1,18,584
Total 57,762 1,19,026 1,26,237 3,03,025 53,584 80,222 1,26,560 2,60,366
Note:
1. Includes impairment allowance on loan commitments ` 4,736 lakh (as on March 31, 2021 : ` 3,438
lakh)
2. Includes impairment allowance towards loan designated as FVTOCI ` Nil (as on March 31, 2021 :
` 18 lakh)
3. Includes impairment loss allowance towards loans designated as FVTPL ` 6 lakh (as on March 31,
2021 : ` 4 Lakh)
224
2) Internal ratings based method implemented by the Group for credit quality analysis of Loans
for Infrastructure finance division
The table below shows the credit quality and the maximum exposure to credit risk based on the
internal credit rating system and year-end stage classification of Loans. The amounts presented are
gross of impairment allowances. Details of the division’s internal grading system are explained in
Note below.
(` in lakh)
Outstanding Gross As at March 31, 2022 As at March 31, 2021
a)
Loans Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Internal rating grade
Grade 1 3,16,018 - - 3,16,018 3,10,708 - - 3,10,708
Grade 2 4,30,175 - - 4,30,175 2,89,884 - - 2,89,884
Grade 3 - 31,858 - 31,858 - 21,470 - 21,470
Grade 4 - - 5,922 5,922 - - 6,030 6,030
Total 7,46,193 31,858 5,922 7,83,973 6,00,592 21,470 6,030 6,28,092
Note : Gross Carrying amount does not include Loan commitments ` 1,61,550 lakh ( As on March
31, 2021: ` 60,206 lakh)
(` in lakh)
Impairment As at March 31, 2022 As at March 31, 2021
b)
allowance on Loans Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Internal rating grade
Grade 1 959 - - 959 951 - - 951
Grade 2 3,730 - - 3,730 3,113 - - 3,113
Grade 3 - 4,704 - 4,704 - 2,415 - 2,415
Grade 4 - - 2,154 2,154 - - 2,193 2,193
Total 4,689 4,704 2,154 11,547 4,064 2,415 2,193 8,672
Note: Include impairment allowance on Loan commitments ` 524 lakh ( As on March 31, 2021: ` 131
lakh)
c) Internal Ratings as per Definition

rating grades internal rating method
Grade 1 AAA to A highest level of security is available. Account has
satisfactory performance
Grade 2 BBB | BBB- | BBB+ adequate level of security. Account has satisfactory
performance
Grade 3 BB | BB+ | BB- Account has shown significant deterioration in
performance
Grade 4 D Account has defaulted
Note: Tata Cleantech Capital, a subsidiary has a internal rating model mapped to external Crisil
rating grades.
225
3) Loans
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
LOANS
- At Amortised Cost 92,92,363 75,51,535
- At Fair Value through Other Comprehensive Income 36,777 85,514
- At Fair Value Through Profit and Loss 2,519 1,000
Total - Gross Carrying value of Loans 93,31,659 76,38,049
Less: Revenue received in Advance (39,983) (31,826)
Add: Unamortised loan sourcing costs 18,749 13,322
Total - Carrying Value of Loans 93,10,425 76,19,545
Less : Impairment Allowance (2,98,289) (2,56,910)
Total - Net Carrying value of Loans 90,12,136 73,62,635
4) Trade receivables
(` in lakh)
PARTICULARS As at March 31, 2022 As at March 31, 2021
Gross Impairment Net Gross Impairment Net
Category of Trade receivables
allowance allowance
Stage 1: Considered good 3,119 - 3,119 2,661 - 2,661
Stage 2:Significant increase in 131 (17) 114 45 (43) 2
credit risk
Stage 3: Credit impaired 74 (74) - 67 (67) -
Total 3,324 (91) 3,233 2,773 (110) 2,663
5) Derivative Financial Instruments
The Group enters into derivatives contract for risk management purposes and has elected to
apply hedge accounting requirements. The table below shows the fair values of derivative financial
instruments recorded as assets or liabilities together with their notional amounts.The notional
amounts indicate the value of transactions outstanding at the year end and are not indicative of
either the market risk or credit risk.
(` in lakh)
Derivatives held for Risk Notional Fair Value Fair Notional Fair Value Fair
management purposes Amounts - Assets Value - Amounts - Assets Value -
Liabilities Liabilities
Foreign Exchange Forward 3,01,666 59 33,580 2,58,316 33 15,134
contracts
Interest Rate Swap - 899 427 - - 3,154
Cross currency Interest Rate Swap 1,05,728 2,563 298 65,907 1,121 1,304
Interest rate cap - - - - - 1,963
Total 4,07,394 3,521 34,305 3,24,223 1,154 21,555
226
Derivatives held for risk management purposes, not designated as hedging instruments:
The Group is exposed to foreign currency risk related to external commercial borrowings and the primary risk of
change in the floating interest rate and payment in foreign currency towards principal and interest at future date is
managed by entering into a interest rate swap and foreign exchange forward rate purchase agreement respectively.
The Group’s risk management strategy and how it is applied to manage risk is explained in Note 44.”
The Cross currency swap, Interest rate swap and foreign exchange forward currency agreements are entered to fully
hedge the risk on account of change in interest rate and foreign exchange fluctuations on account of the external
commercial borrowings.
ii) Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the
counterparty.
(1) The main types of collateral obtained across respective business division are as follows:
a Corporate and SME Finance division:
First charge over real estate properties, plant and machineries, inventory and trade
receivables, equity and debt securities, floating charge over the corporate assets are obtained.
For Construction equipment finance, the asset is hypothecated to the Company.
b Consumer, Housing finance and advisory business:
For housing loans, mortgage against residential property is obtained. For loan against property,
mortgage against residential and commercial property is obtained. For Construction finance,
additionally mortgage over residential and commercial project is obtained.”
c Infrastructure finance:
The term loans are secured by charge on assets and cash flows of the underlying solar and
road projects.
227
(2) The table represents categories of collaterals available against the loan exposures:
(` in lakh)
As at As at
Particulars Category of collateral available
March 31, 2022 March 31, 2021
Bills purchased and Charge on trade receivables and 2,37,005 1,18,666
bills discounted inventories
1) Commercial and SME Finance Division
A) charge over:
i) real estate properties (including
residential and commercial),
ii) Property and equipment,
iii) inventory and trade receivables,
Term loans iv) marketable securities (equity and debt 86,26,702 72,25,898
securities)
B) hypothecation of underlying asset
financed such as construction and
earth moving equipment, vehicles and
tractors
C) floating charge on corporate assets as
mentioned in point a above
2) Consumer, Housing finance and
advisory business
A) real estate properties (including
residential and commercial),
Credit substitutes B) land 3,04,491 1,97,522
C) Under construction flat
3) Infrastructure finance division
Secured by charge on assets and
cash flows of the underlying solar and
road projects.
Finance lease and Hypothecation of the underlying asset 1,61,039 92,515
hire purchase financed, primarily includes plant and
equipment
Retained portion of Mortgages over residential properties 2,422 3,448
assigned loans
Total 93,31,659 76,38,049
(3) Assets obtained by taking possession of collateral:
The Group’s collection policy is to pursue timely realisation of the collateral in an orderly
manner. The Group upon a customer account becoming delinquent, undertakes the
process to physically repossess properties or other assets with the help of external
agents to recover funds, to settle outstanding debt. Any surplus funds if any received are
returned to the customers/obligors. As a result of this practice, the residential properties,
vehicles, construction equipments and tractors under legal repossession processes are
not recorded on the balance sheet and not treated as non–current assets held for sale. Asset
in the form of real estate property, plant and machinery, equity shares and debt securities
received upon final settlement of the loan is recorded as non-current assets held for sale
Management monitors the market value of collateral as per the Credit monitoring process and will
request additional collateral in accordance with the underlying agreement as applicable.
228
The table represents categories of collaterals available against the Stage 3 assets, basis
valuation available with the Group:
(` in lakh)
As at As at
Particulars Category of collateral available
March 31, 2022 March 31, 2021
Financial asset measured at Amortised Cost and FVTOCI
Loans
Bills purchased and Charge on Trade receivables and - -
bills discounted inventories
“A) Charges over:
i) real estate properties (including
Term loans residential and commercial), 1,11,161 1,89,942
ii) Property and equipment,
iii) inventory and trade receivables,
iv) marketable securities (equity and
- -
debt securities)
B) hypothecation of underlying asset
financed such as construction and
Credit substitutes earth moving equipment, vehicles
and tractors
C) floating charge on corporate assets
as mentioned in point A”
Total 1,11,161 1,89,942
Note: Fresh valuation is obtained for stage 3 assets upon becoming overdue for more than 15
months.
iii Amounts arising from ECL

Impairment allowance on financial asset is covered in note 2(xiii)
Inputs, assumptions and estimation techniques used for estimating ECL

1) Inputs:
When determining whether the risk of default on a financial instrument has increased
significantly since initial recognition, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis based on the Group’s historical
experience, expert credit assessment and including forward looking information.
The Group allocates each exposure to a credit risk grade based on a days past due, which
is a quantitative factor that indicates the risk of default. Additional factors such as customer
fraud, reschedulement of loans and directions by the risk management committee to exit
certain risky portfolios are also considered as qualitative factor. These factors are applied
uniformly for each lending. The determination of the credit risk is for each product, considering
the unique risk and rewards associated with it. The Group has observed varied level of risk
across these stage and buckets and a significant increase in risk in stage 2 and stage 3.
The objective of the ECL assessment is to identify whether a significant increase in credit risk
has occurred for an exposure by comparing the remaining lifetime probability of default (PD)
as at the reporting date; with the remaining lifetime PD for this point in time that was estimated
at the time of initial recognition of the exposure and adjusted for changes on account of
prepayments.
229
In assessing the impairment of loan assets under expected credit loss (ECL) Model, the loans
have been segmented into three stages based on the risk profiles. The three stages reflect the
general pattern of credit deterioration of a financial instrument.
Refer note 2(xiii) in Significant accounting policies for definition of Stages of Asset
2) Assumptions:
The Group has applied following assumptions for determination of ECL.
1) Loss given default” (LGD) is an estimate of loss from a transaction given that a default occurs.
2) Probability of default” (PD) is defined as the probability of whether the borrowers will
default on their obligations in the future. For assets which are in Stage 1, a 12-month
PD is required. For Stage 2 assets a lifetime PD is required while Stage 3 assets are
considered to have a 100% PD.
3) “Exposure at default” (EAD) represents the expected exposure in the event of a default
and is the gross carrying amount in case of the financial assets held by the Group
including loan commitments.
4) Definition of default: A default on a financial asset is when the counterparty fails to make
the contractual payments within 90 days of when they fall due. Accordingly, the financial
assets shall be classified as Stage 3, if on the reporting date, it has been 90 days
past due. Further if the customer has requested forbearance in repayment terms, such
restructured, rescheduled or renegotiated accounts are also classified as Stage 3. Non-
payment on another obligation of the same customer is also considered as a stage 3.
5) Forward looking information
The Group incorporates forward looking information into both assessments of whether
the credit risk of an instrument has increased significantly since its initial recognition
and its measurement of ECL. Based on the consideration of a variety of external actual
and forecast information, the Group forms a ‘base case’ view of the future direction of
relevant economic variables such as real GDP, domestic credit growth, money market
interest rate etc. as well as a representative range of other possible forecast scenarios.
This process involves developing two or more additional economic scenarios and
considering the relative probabilities of each outcome. The base case represents a most
likely outcome in a normal distribution curve while the other scenarios represent more
optimistic and more pessimistic outcomes. More weight is applied to pessimistic outcome
consistently as a matter of prudence than optimistic outcome.
6) Assessment of significant increase in credit risk
The credit risk on a financial asset of the Group are assumed to have increased
significantly since initial recognition when contractual payments are more than 30 days
past due. Additionally, accounts identified and reviewed by the Executive committee for
labelling as breaching pre-defined critical credit risk parameters will also be classified
as stage 2. Accordingly, the financial assets shall be classified as Stage 2, based on the
quantitative as well as qualitative factors.
3) Estimation techniques:
The Group has applied the following estimation technique for ECL model:
1) The Group has used historic default rates for calculating the 12-month PD and Lifetime PDs
2) Loss given default is calculated after considering outstanding at the time of default and
adjusting for actual recoveries basis time value of money, absent availability of internal
data we have used information to the extent available from Basel norms.
230
Credit risk monitoring techniques

Exposures are subject to ongoing monitoring, which may indicate that a significant
increase in credit risk has occurred on an exposure. The monitoring typically involves use
of the following data for Corporate and Retail exposures:
i) Overdue status
ii) Restructuring, reschedulement of loans and requests for granting of forbearance
iii) Fraudulent customer
iv) Exit directed by the Risk management committee
v) Accounts classified by SICR committee indicating significant increase in credit risk
vi) Information published in the Basel IRB (Basel internal rating based approach refers to set
of credit measurement techniques proposed by the Basel Committee on Bank Supervision
(BCBS) for determining capital adequacy of the bank) norms is also used Days past due
are a primary input for the determination of the PD for exposures. The Group collects
performance and default information about its credit risk exposures analysed by product.
For some portfolios, information published in Basel IRB norms is also used.
The Group employs statistical models to analyse the data collected and generate estimates
of the remaining lifetime PD of exposures and how these are expected to change as a
result of the passage of time. Such statistical models are selected considering the
availability of information related to the probability of default for each product.
This analysis includes the identification and calibration of relationships between changes in
default rates and changes in key macro-economic factors. Key macro-economic indicators
includes but is not limited to;
a) Private consumption;
b) Real GDP;
c) Housing Price Index;
d) Lending interest rate;
e) Consumer prices;
f) Real agriculture;
g) Long-term bond yield;
h) GDP deflator
For the purpose of determination of impact of forward looking information, the Group
applies various macro economic (ME) variables as stated above to each product and
assess the trend of the historical probability of defaults as compared to the forecasted
probability of default. Based on the directional trend of output, management applies an
overlay if required. Overtime, new ME variable may emerge to have a better correlation
and may replace ME being used now.
Based on advice from the external risk management experts, the Group considered
variety of external actual and forecast information to formulate a ‘base case’ view of the
future direction of relevant economic variables as well as a representative range of other
possible forecast scenarios. Such forecasts are adjusted to estimate the PDs.
Predicted relationships between the key indicators and default and loss rates on various
portfolios of financial assets have been developed based on analysing historical data
over the past 5 years.
231
A maximum of a 12-month PD or actual contractual tenure is considered for financial

assets for which credit risk has not significantly increased. The Group measures ECL for
stage 2 and stage 3 assets considering the risk of default over the maximum contractual
period over which it is exposed to credit risk.
The loans are segmented into homogenous product categories to determine the historical
PD/LGD as per similar risk profiles, this segmentation is subject to regular review
For portfolios in respect of which the Group has limited historical data, external
benchmark information is used to supplement the internally available data or internal
benchmark with similar credit risk profile.
vii) Techniques for determining LGD:
LGD is the magnitude of the likely loss if there is a default. The Group estimates LGD
parameters based on the history of recovery rates against defaulted counterparties.
The LGD models consider the cash flow received, assets received in lieu of settlement
of loan and collateral available for subsequent recovery that is integral to the financial
asset. LGD estimates are calculated on a discounted cash flow basis using the internal
rate of return as the discounting factor. Group has observed challenges in the resolution
of defaulted accounts with ageing more than two years and accordingly a higher LGD
estimate is applied assuming nil recoveries towards such accounts. The Group has
prospectively adopted collection curve method for computation of loss given defaults to
determine expected credit losses, in the Absence of observed history of default, LGD
applied is based on Basel IRB norms for certain products.
viii) Techniques for computation of EAD
a) EAD represents the expected exposure in the event of a default. The Group derives
the EAD from the current exposure to the counterparty and potential changes to
the current amount allowed under the contract including amortisation. The EAD
of a financial asset is its gross carrying amount. For lending commitments, the
EAD includes the amount drawn, as well as potential future amounts that may be
drawn under the contract, which are estimated based on credit conversion factor
prescribed by RBI for various loan commitments. For financial assets in stage
2, EAD is determined by estimating the possible exposure in future using linear
amortisation techniques.
b) For undrawn loan commitments, the ECL is the difference between the present
value of the difference between the contractual cash flows that are due to the
Group if the holder of the commitment draws down the loan and the cash flows that
the Group expects to receive if the loan is drawn down. Outstanding exposure for
utilised limit as well as un-utilised limit post applying the credit conversion factor as
prescribed under RBI guidelines, absent availability of information of past history
of conversion of un-utilised limits into utilised limits is considered as exposure at
default for non-fund based facilities.
ix) Modified financial assets
The Group renegotiates loans to customers in financial difficulties (referred to as forbearance
activities, restructuring or rescheduling) to maximise collection opportunities and minimise the
risk of default. Under the Companies forbearance policy, loan forbearance is granted on a
selective basis if the debtor is currently in default on its debt or if there is a high risk of
default, there is evidence that the debtor made all reasonable efforts to pay under the original
contractual terms and the debtor is expected to be able to meet the revised terms.
The revised terms usually include extending the maturity, changing the timing of interest
payments and amending the terms of loan covenants. Both retail and corporate loans are
subject to the forbearance policy. The Risk Management Committee regularly reviews reports
on forbearance activities.
232
Upon renegotiation, such accounts are classified as stage 3. Such accounts are upgraded
to stage 1 only upon observation of satisfactory repayments of one year from the date of such
downgradation and accordingly loss allowance is measured using 12 month PD.
Pursuant to RBI Covid restructuring policy, accounts for which Covid restructuring facility were given
have been reclassified from Stage I to Stage II if DPD at invocation was between 0-29 and If
the DPD was 30+ then the accounts were further downgraded within Stage II and corresponding
staging wise ECL provision was done.
iii Amounts arising from ECL

An analysis of changes in the gross carrying amount and the corresponding ECL allowances
in relation to lending is, as follows:
(` in lakh)
a) Gross carrying amount
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Opening balance 71,26,181 3,18,484 1,93,384 76,38,049 73,61,598 1,95,844 1,49,535 77,06,977
New assets originated or 48,97,710 9,666 1,011 49,08,387 25,29,866 1,018 304 25,31,188
purchased/further increase in
existing assets
Assets derecognised or (30,24,716) (77,737) (31,253) (31,33,706) (24,36,981) (41,492) (16,095) (24,94,568)
repaid (excluding write offs)
Transfers to Stage 1 36,115 (25,717) (10,398) - 50,403 (47,154) (3,249) -
Transfers to Stage 2 (2,97,818) 3,01,033 (3,215) - (2,61,690) 2,63,517 (1,827) -
Transfers to Stage 3 (56,555) (40,868) 97,423 - (1,07,699) (45,914) 1,53,613 -
Amounts written off (6,278) (5,619) (69,174) (81,071) (9,316) (7,335) (88,897) (1,05,549)
Closing balance 86,74,639 4,79,242 1,77,778 93,31,659 71,26,181 3,18,484 1,93,384 76,38,049
Note: Gross carrying amount does not include loan commitments ` 10,00,024 lakh (As on March 31,
2021: ` 590,749 lakh)
(` in lakh)
b) Impairment allowance on As at March 31, 2022 As at March 31, 2021
Opening balance 53,584 80,222 1,26,560 2,60,366 67,951 47,652 1,07,425 2,23,028
Remeasurement due to changes in 1,12,176 26,366 13,448 1,51,990 1,42,108 23,345 6,811 1,72,264
EAD/estimates
Assets derecognised or repaid (6,862) (16,796) (21,592) (45,250) (31,998) (14,013) (14,111) (60,122)
(excluding write offs)
Transfers to Stage 1 395 (282) (113) - 1,339 (1,250) (89) -
Transfers to Stage 2 (63,249) 63,665 (416) - (55,927) 56,209 (282) -
Transfers to Stage 3 (37,914) (30,230) 68,144 - (69,345) (28,412) 97,757 -
Amounts written off (368) (3,919) (59,794) (64,081) (544) (3,309) (70,951) (74,804)
Closing balance 57,762 1,19,026 1,26,237 3,03,025 53,584 80,222 1,26,560 2,60,366
Includes impairment allowance on loan commitments ` 4,736 lakh (As on March 31, 2021 : ` 3,438 lakh
Bank balances of the Group are with highly rated banks. Hence, the Group doesn’t expect any ECL on
cash and cash equivalents and other bank balances.
233
Modified financial assets

The Group renegotiates loans given to customers in financial difficulties (referred to as forbearance
activities, restructuring or rescheduling) to maximise collection opportunities and minimise the risk
of default. Under the Group’s forbearance policy, loan forbearance is granted on a selective basis if
the customer is currently in default on its debt or if there is a high risk of default, there is evidence
that the customer made all reasonable efforts to pay under the original contractual terms and the
customer is expected to be able to meet the revised terms.
The revised terms usually include extending the maturity, changing the timing of interest payments
and amending the terms of loan covenants. Both retail and corporate loans are subject to the
forbearance policy. The Risk Management Committee regularly reviews reports on forbearance
activities.
Upon renegotiation, such accounts are classified as stage 3. Such accounts are upgraded to
stage 1 only upon observation of satisfactory repayments of one year from the date of such down-
gradation and accordingly loss allowance is measured using 12 month PD.
Exposure to modified financial assets

(` in lakh)
As at As at
PARTICULARS
March 31, 2022 March 31, 2021
Loan exposure to modified financial assets
Gross carrying amount 3,95,811 1,27,568
Impairment allowance 1,11,120 27,190
Net carrying amount 2,84,691 1,00,378
iv) Concentration of Credit Risk

The table below shows the credit quality based on credit concentration and the maximum exposure
to credit risk based on the days past due and year-end stage classification of Loans. The amounts
presented are gross of impairment allowances.
(` in lakh)
Gross carrying value
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Divisions
Consumer, Housing finance 45,39,721 3,96,455 1,29,295 50,65,471 39,44,807 2,58,576 1,47,807 43,51,190
and advisory business
Commercial and SME finance 33,68,712 50,929 42,561 34,62,202 25,80,782 38,438 39,547 26,58,767
Infrastructure finance 7,46,193 31,858 5,922 7,83,973 6,00,592 21,470 6,030 6,28,092
Others 20,013 - - 20,013 - - - -
Total 86,74,639 4,79,242 1,77,778 93,31,659 71,26,181 3,18,484 1,93,384 76,38,049
Note: Gross carrying amount does not include loan commitments ` 10,00,024 lakh (As on March
31, 2021: ` 590,749 lakh)
234
(` in lakh)
Impairment allowance on As at March 31, 2022 As at March 31, 2021
Divisions
Consumer, Housing finance 41,439 1,04,538 86,390 2,32,367 37,154 71,816 90,179 1,99,149
and advisory business
Commercial and SME finance 11,554 9,784 37,693 59,031 12,366 5,991 34,188 52,545
Infrastructure finance 4,689 4,704 2,154 11,547 4,064 2,415 2,193 8,672
Others 80 - - 80 - - - -
Total 57,762 1,19,026 1,26,237 3,03,025 53,584 80,222 1,26,560 2,60,366
Includes impairment allowance on loan commitments ` 4,736 lakh (As on March 31, 2021 : ` 3,438
lakh)
B. Liquidity risk
i. Maturity analysis for financial liabilities and financial assets
The following tables set out the remaining contractual maturities of the Group’s financial liabilities
and financial assets:
(` in lakh)
Carrying Gross Less 1–3 3 1-5 More Upto 1 More
amount nominal than months months years than Year than 1
inflow/ 1 month –1 year 5 years Year
outflow
Financial asset by type
Cash and cash equivalents 2,08,162 2,08,162 1,95,001 1,756 11,405 - - 2,08,162 -
Bank balances 5,420 5,420 26 311 4,279 770 34 4,616 804
Derivative assets 3,521 3,521 912 1,563 9 1,036 - 2,485 1,036
Receivables 3,255 3,255 - 564 2,691 - - 3,255 -
Loans 90,12,136 90,12,136 5,08,881 10,02,629 17,91,126 33,41,285 23,68,215 33,02,636 57,09,500
Investments 6,78,008 6,78,008 4,86,997 - - 68,779 1,22,232 4,86,997 1,91,011
Other Financial Assets 25,059 25,059 14 58 22,921 1,727 339 22,993 2,066
Total 99,35,561 99,35,561 11,91,831 10,06,881 18,32,431 34,13,597 24,90,820 40,31,144 59,04,417
Financial liabilities by type
Derivative liabilities 34,305 34,305 35 1,178 28,192 4,899 - 29,406 4,899
Trade and other payables 1,02,597 1,02,597 115 6,121 96,361 - - 1,02,597 -
Debt securities 40,69,140 40,69,140 1,74,256 2,33,598 11,86,950 17,84,665 6,89,671 15,94,804 24,74,336
Borrowings 38,63,992 38,63,992 2,03,176 5,58,022 7,85,190 22,37,111 80,493 15,46,388 23,17,604
Subordinated liabilities 6,88,845 6,88,845 - 3,130 33,948 2,98,925 3,52,842 37,078 6,51,767
Lease liabilities 12,345 12,345 316 638 2,030 6,694 2,667 2,984 9,361
Other financial liabilities 1,27,750 1,27,750 21,114 887 57,885 47,864 - 79,886 47,864
Total 88,98,974 88,98,974 3,99,012 8,03,574 21,90,556 43,80,158 11,25,673 33,93,143 55,05,831
Market Borrowings 49,33,471 49,33,471 2,00,004 3,40,713 11,60,195 23,42,098 8,90,461 17,00,912 32,32,559
Bank borrowings 36,88,506 36,88,506 1,77,428 4,54,037 8,45,893 19,78,603 2,32,545 14,77,358 22,11,148
Total 86,21,977 86,21,977 3,77,432 7,94,750 20,06,088 43,20,701 11,23,006 31,78,270 54,43,707
235
(` in lakh)
Carrying Gross Less 1–3 3 1–5 More upto 1 more
amount nominal than 1 months months years than 5 Year than 1
inflow/ month –1 year years Year
(outflow)
Financial asset by type
Cash and cash equivalents 2,02,691 2,02,691 1,92,581 78 10,032 - - 2,02,691 -
Bank balances 2,372 2,372 236 274 1,780 82 - 2,290 82
Derivative assets 1,154 1,154 (160) (271) (1,289) 2,874 - (1,720) 2,874
Receivables 2,670 2,670 - 106 2,564 - - 2,670 -
Loans 73,62,635 73,62,635 3,04,559 7,01,327 14,14,643 27,74,740 21,67,366 24,20,529 49,42,106
Investments 3,82,328 3,82,328 2,66,469 - - 41,719 74,140 2,66,469 1,15,859
Other Financial Assets 57,470 57,470 - 218 55,955 1,037 260 56,173 1,297
Total 80,11,320 80,11,320 7,63,685 7,01,732 14,83,685 28,20,452 22,41,766 29,49,102 50,62,218
Financial liabilities by
type
Derivative liabilities 21,555 23,607 622 464 3,281 19,240 - 4,367 19,240
Trade and other payables 80,974 80,974 392 4,006 76,576 - - 80,974 -
Debt securities 31,93,375 31,93,375 50,765 1,56,424 8,03,254 17,39,261 4,43,671 10,10,443 21,82,932
Borrowings 31,22,451 31,22,451 84,152 5,22,311 10,28,963 14,63,610 23,415 16,35,426 14,87,025
Subordinated liabilities 5,90,482 5,90,482 - 12,857 75,922 2,07,148 2,94,555 88,779 5,01,703
Lease liabilities 10,243 10,243 220 493 1,881 6,521 1,128 2,594 7,649
Other financial liabilities 1,44,972 1,44,972 50,403 - 42,543 49,562 2,463 92,947 52,025
Total 71,64,052 71,66,104 1,86,554 6,96,555 20,32,420 34,85,342 7,65,232 29,15,530 42,50,574
Market Borrowings 43,60,583 43,60,583 92,391 3,29,680 12,42,335 21,02,205 5,93,972 16,64,406 26,96,177
Bank borrowings 25,45,725 25,45,725 42,526 3,61,912 6,65,804 13,07,814 1,67,669 10,70,242 14,75,483
Total 69,06,308 69,06,308 1,34,917 6,91,592 19,08,139 34,10,019 7,61,641 27,34,648 41,71,660
236
ii. Financial assets position pledged/ not pledged

The total financial assets demonstrating position of pledged and not pledged assets are shown
in the below table:
(` in lakh)
Particulars Pledged Not Total Pledged Not Total
Pledged Pledged
ASSETS
Financial assets 89,06,282 10,29,279 99,35,561 73,47,109 6,64,211 80,11,320
Cash and cash equivalents - 2,08,162 2,08,162 - 2,02,691 2,02,691
Bank Balance other than Cash and cash 63 5,357 5,420 63 2,309 2,372
equivalents above
Derivatives financial instruments - 3,521 3,521 - 1,154 1,154
Trade Receivables - 3,233 3,233 - 2,663 2,663
Other Receivables - 22 22 - 7 7
Loans 89,06,219 1,05,917 90,12,136 73,47,046 15,589 73,62,635
Investments - 6,78,008 6,78,008 - 3,82,328 3,82,328
Other financial assets - 25,059 25,059 - 57,470 57,470
Non-financial Assets 246 3,02,821 3,03,067 261 2,81,445 2,81,706
Current tax asset - 16,585 16,585 - 14,150 14,150
Deferred tax Assets (Net) - 84,099 84,099 - 73,930 73,930
Investments accounted using equity - 1,06,608 1,06,608 - 82,969 82,969
method
Investment property 227 1,789 2,016 240 1,887 2,127
Property, Plant and Equipment 19 56,261 56,280 21 76,554 76,575
Capital work-in-progress - 377 377 - - -
Intangible assets under development - 772 772 - 755 755
Other Intangible assets - 2,514 2,514 - 2,710 2,710
Right to use assets - 11,133 11,133 - 8,732 8,732
Other non-financial assets - 22,683 22,683 - 19,758 19,758
Total Assets 89,06,528 13,32,100 1,02,38,628 73,47,370 9,45,656 82,93,026
237
C. Market risk
i The following table sets out the allocation of assets and liabilities to non-trading portfolios. The
Group does not allocate the assets and liabilities to trading portfolios.
(` in lakh)
Market risk measure
Particulars As at As at
March 31, 2022 March 31, 2021
Financial assets
Cash and cash equivalents 2,08,162 2,02,691
Bank balances 5,420 2,372
Derivative financial instruments 3,521 1,154
Trade receivables 3,233 2,663
Other receivables 22 7
Loans 90,12,136 73,62,635
Investments 6,78,008 3,82,328
Other financial assets 25,059 57,470
Total 99,35,561 80,11,320
Derivatives financial instruments 34,305 21,555
Total outstanding dues of micro enterprises and small 203 111
enterprises
Total outstanding dues of creditors other than micro 1,02,394 80,863
enterprises and small enterprises
Debt securities 40,69,140 31,93,375
Borrowings (Other than debt securities) 38,63,992 31,22,451
Subordinated liabilities 6,88,845 5,90,482
Lease liabilities 12,345 10,243
Other financial liabilities 1,27,750 1,44,972
Total 88,98,974 71,64,052
Exposure to interest rate risk – Non-trading portfolios
Group carries out interest rate sensitivity analysis to assess the impact on earnings, of interest
rate movement considering the rate sensitive assets and rate sensitive liabilities upto one year
period. The fixed rate assets and liabilities which are falling due on residual basis within one
year have been considered as floating rate assets and liabilities basis the minimum of ‘interest
rate reset date or maturity of the contract’. The basis risk between various benchmark linked
to assets and liabilities are considered to be insignificant.
Below table illustrates impact on earnings on account of 100 bps change on in interest rate on
the assets and liabilities due for repayment / rate reset in next one year.
238
As on March 31, 2022 (` in lakh)

Less than 1 Year @ 100bps @ 100bps
Particulars
change increase change decrease
Rate sensative assets 78,46,642 65,734 (65,734)
Rate sensative liabilities 53,98,613 37,976 (38,083)
Net 24,48,029 27,758 (27,651)
As on March 31, 2021 (` in lakh)

Less than 1 Year @ 100bps @ 100bps
Particulars
change increase change decrease
Rate sensative assets 66,98,062 51,942 (51,942)
Rate sensative liabilities 39,72,307 22,750 (22,751)
Net 27,25,755 29,192 (29,191)
The following table sets forth, for the periods indicated, the break-up of borrowings into
variable rate and fixed rate.
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Variable rate borrowings 41% 37%
Fixed rate borrowings 59% 63%
Total borrowings 100% 100%
ii Exposure to currency risks – Non-trading portfolios

The Group has entered into derivative contract to fully hedge the risk.
The Group’s exposure to foreign currency risk at on March 31, 2022 expressed in INR, are as
follows
(` in lakh)
March 31, 2022 March 31, 2021
Particulars
USD EURO JPY SGD USD EURO JPY SGD
Letter of Credit/Buyers Credit 428 196 - - 619 675 1,132 125
(` in lakh)
Impact on profit after tax Impact on profit after tax
Particulars March 31, 2022 March 31, 2021
USD EURO JPY SGD USD EURO JPY SGD
Sensitivity - Increase by 1% (4) (2) - - (6) (7) (11) (1)
Sensitivity - Decrease by 1% 4 2 - - 6 7 11 1
239
iii. Foreign currency risk exposure- subsidiaries

The foreign currency risk from monetary asset and liabilities as at March 31, 2022 is as
follows:
(` in lakh)
As at As at
US Dollar US Dollar
Net exposure to foreign currency risk in respect of 60,101 52,204
recognised financial assets/(financial liabilities)
Sensativity analysis between Indian Rupee and US Dollar:
(` in lakh)
As at March As at March
Particulars
31, 2022 31, 2021
1% Depreciation in INR
Impact on P&L 70 74
1% Appreciation in INR
Impact on P&L (70) (74)
NOTE “46”
Liquidity risk
i. Exposure to liquidity risk
The Group has set tolerance limits in the light of the Group’s business objectives, strategic direction
and overall risk appetite. The tolerance limits reflects balance between profitability and managing
liquidity risk and considers Group’s current financial condition and funding capacity. The Group
maintains liquidity buffer of unencumbered highly liquid assets (if required) to insure against liquidity
stress events.
ii. Maturity analysis of assets and liabilities

The table below set out carrying amount of assets and liabilities 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.
240
(` in lakh)
Particulars Within 12 After 12 Total Within 12 After 12 Total
months months months months
ASSETS
Financial assets 40,31,144 59,04,417 99,35,561 29,49,102 50,62,218 80,11,320
Cash and cash equivalents 2,08,162 - 2,08,162 2,02,691 - 2,02,691
Bank Balance other than (a) above 4,616 804 5,420 2,290 82 2,372
Derivatives financial assets 2,485 1,036 3,521 (1,720) 2,874 1,154
Receivables 3,255 - 3,255 2,670 - 2,670
Loans 33,02,636 57,09,500 90,12,136 24,20,529 49,42,106 73,62,635
Investments 4,86,997 1,91,011 6,78,008 2,66,469 1,15,859 3,82,328
Other financial assets 22,993 2,066 25,059 56,173 1,297 57,470
Non-financial Assets 2,637 3,00,430 3,03,067 15,403 2,66,303 2,81,706
Current tax asset - 16,585 16,585 - 14,150 14,150
Deferred tax Assets (net) - 84,099 84,099 - 73,930 73,930
Investments accounted using equity - 1,06,608 1,06,608 - 82,969 82,969
method
Investment property - 2,016 2,016 - 2,127 2,127
Property, Plant and Equipment - 56,280 56,280 11,427 65,148 76,575
Capital work-in-progress - 377 377 - - -
Intangible assets under development 147 625 772 - 755 755
Other Intangible assets - 2,514 2,514 - 2,710 2,710
Right of use assets - 11,133 11,133 - 8,732 8,732
Other non-financial assets 2,490 20,193 22,683 3,976 15,782 19,758
Total Assets 40,33,781 62,04,847 1,02,38,628 29,64,505 53,28,521 82,93,026
LIABILITIES
Financial Liabilities 33,93,143 55,05,831 88,98,974 29,15,530 42,48,522 71,64,052
Derivative financial liabilities 29,406 4,899 34,305 4,367 17,188 21,555
Trade and other payables 1,02,597 - 1,02,597 80,974 - 80,974
Debt Securities 15,94,804 24,74,336 40,69,140 10,10,443 21,82,932 31,93,375
Borrowings (Other than debt securities) 15,46,388 23,17,604 38,63,992 16,35,426 14,87,025 31,22,451
Subordinated liabilities 37,078 6,51,767 6,88,845 88,779 5,01,703 5,90,482
Lease liabilities 2,984 9,361 12,345 2,594 7,649 10,243
Other financial liabilities 79,886 47,864 1,27,750 92,947 52,025 1,44,972
Non-Financial Liabilities 46,216 9,839 56,055 37,602 10,693 48,295
Current tax liability 34,959 - 34,959 28,695 - 28,695
Provisions 6,465 837 7,302 4,908 941 5,849
Other non financial liabilities 4,792 9,002 13,794 3,999 9,752 13,751
Total liabilities 34,39,359 55,15,670 89,55,029 29,53,132 42,59,215 72,12,347
Net 5,94,422 6,89,177 12,83,599 11,373 10,69,306 10,80,679
241
NOTE “47”
The impact of COVID-19 on the Group’s performance will depend on the ongoing as well as future
developments, including, among other things, any new information concerning the COVID-19 pandemic
and any measure to contain its spread or mitigate its impact, whether mandated by the Government or
adopted by us.
NOTE “48”
On cessation of equity broking activities in 2003 in Tata Securities Limited (Erstwhile known as
Tata TD Waterhouse Securities Limited), one of the subsidiary, had reconciled the stocks held
in its beneficiary account on behalf of clients. The stocks after reconciliation was transferred to DP
opened in IL&FS Securities Limited (DP a/c no-10920737). In March 20, 2020 DP account was
opened in Tata Securities Limited (DP a/c no-257091) and all the stocks from IL&FS Securities
Limited (DP a/c no-10920737) DP accounts were transferred to Tata Securities DP accounts
except stock of Cyberspace. The Cyberspace stock could not be transfer due to inactive
ISIN, so the Cyberspace shares are still lying with IL&FS Securities Limited DP accounts.
There is no client outstanding as on March 31, 2022. The value of the stocks as on March 31, 2022 is
` 12 lakhs.
NOTE “49”
The disclosure on the following matters required under Schedule III as amended not being relevant or
applicable in case of the Group, same are not covered:
a) The Group has not traded or invested in crypto currency or virtual currency during the financial year.
b) No proceedings have been initiated or are pending against the Group for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
c) The Group has not been declared willful defaulter by any bank or financial institution or government
or any government authority.
d) The Group has not entered into any scheme of arrangement.
e) No satisfaction of charges are pending to be filed with ROC.
f) There are no transactions which are not recorded in the books of account which have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.
NOTE “50”
Details of transactions with companies struck off under section 248 of the Companies Act, 2013:
As at As at
Name of Struck off Nature of March 31, March 31, Relation ship with the
Company transactions 2022 2021 struck off company
(` in lakhs) (` in lakhs)
Safna Consultancy Private Interest on 16 2 Debenture holder
Limited Debentures
G R Foundations Private Loan 2 3 Borrower
Limited
Armam Agro Udyog Private Loan 7 8 Borrower
Limited
242
NOTE “51”
The Group has not advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or other kind of funds) to or in any other person or entity, including foreign entity
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
The Group has not received any funds (which are material either individually or in the aggregate) from any
person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in
writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
NOTE “52”
The Group has assessed its obligations arising in the normal course of business, proceedings pending with tax
authorities and other contracts including derivative and long term contracts. In accordance with the provisions
of Indian Accounting Standard (Ind AS) - 37 on ‘Provisions, Contingent Liabilities and Contingent Assets’, the
Group recognises a provision for material foreseeable losses when it has a present obligation as a result of a
past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. In cases where the available information indicates that the loss on the
contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure to this
effect is made as contingent liabilities in the financial statements. The Group does not expect the outcome of
these proceedings to have a materially adverse effect on its financial results.
NOTE “53”
The Board of Directors have recommended a final dividend of ` 0.16 per equity share for the financial year
2021-22 (resulting in total dividend of ` 5,626 lakhs), subject to approval of the shareholders in the forthcoming
Annual General Meeting of the Holding Company.


243
Form AOC - 1
244
(Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of the Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statements of subsidiaries/associates/joint ventures
Part “A”: Subsidiaries
(` in lakh)
Share
Reporting currency
Capital /
and exchange rate as Profit / Profit /
The date since when Partner’s Provision % of
Sr. on the last date of the Reserves Total Total (Loss) (Loss) Proposed
Name of Subsidiary subsidiary was Capital / Investments Turnover for Share-
No. relevant Financial Year & Surplus Assets Liabilitites before after Dividend
acquired Unithold- Taxation holding
in the case of foreign Taxation Taxation
er’s
subsidiaries
Capital
1 Tata Capital Financial Services Limited November 19, 2010 INR 1,65,987 6,10,287 59,46,384 51,70,110 2,67,416 6,28,720 1,08,021 26,302 81,719 - 100.00
2 Tata Capital Housing Finance Limited October 15, 2008 INR 54,756 3,01,925 31,24,668 27,67,987 1,78,616 2,85,690 76,034 19,181 56,853 - 100.00
3 Tata Cleantech Capital Limited September 27, 2011 INR 45,929 1,21,753 8,48,688 6,81,006 56,057 70,418 26,865 6,484 20,381 - 80.50
4 Tata Capital Pte. Limited (2) April 25, 2008 1 USD = 75.5199 INR 16,376 32,170 66,536 17,990 61,741 6,504 5,825 1,017 4,809 - 100.00
5 Tata Capital Advisors Pte. Limited (2) April 25, 2008 1 USD = 75.5199 INR 5,717 6,877 17,955 5,361 22 4,944 2,270 120 2,150 - 100.00
6 Tata Capital General Partners LLP (2) January 28, 2010 1 USD = 75.5199 INR 3,776 1,498 7,404 2,129 - 32 23 - 23 - 80.00
7 Tata Capital Growth II General Partners LLP (2) September 28, 2018 1 USD = 75.5199 INR 15 17 64 32 - 289 14 - 14 - 80.00
8 Tata Capital Healthcare General Partners LLP (2) June 17, 2010 1 USD = 75.5199 INR 38 (11) 34 6 - 70 - - - - 100.00
9 Tata Capital Healthcare II General Partners LLP(2) September 12, 2019 1 USD = 75.5199 INR 8 10 414 396 - 488 6 - 6 - 100.00
10 Tata Opportunities General Partners LLP (2) November 1, 2010 1 USD = 75.5199 INR 8 6 110 97 - 4,286 - - - - 90.00
11 Tata Capital PLC (2) November 10, 2009 1 GBP = 99.1765 INR 992 140 1,164 32 - 151 24 (4) 19 - 100.00
12 Tata Securities Limited July 27, 2007 INR 618 609 1,572 345 193 578 (1,172) - (1,172) - 100.00
13 Tata Capital Growth Fund I -Trust (3) July 26, 2010 INR 16,127 (5,424) 10,778 75 10,682 5,294 1,520 3 1,517 - 73.75
14 Tata Capital Special Situation Fund - Trust (3) March 15, 2010 INR 14,826 (10,200) 4,642 16 4,504 3 (24) 1 (25) - 28.20
15 Tata Capital Healthcare Fund I - Trust (3) May 5, 2010 INR 10,434 (6,502) 4,016 84 3,954 2 (816) 1 (817) - 32.17
16 Tata Capital Healthcare Fund II- Trust (3&5) September 12, 2019 INR 17,277 (4,758) 13,531 1,012 13,348 125 (2,828) - (2,828) - 19.86
17 Tata Capital Innovations Fund - Trust (3) August 31, 2010 INR 25,083 (21,835) 3,458 210 3,402 4,797 4,649 2 4,647 - 27.79
18 Tata Capital Growth Fund II - Trust (3&5) September 28, 2018 INR 53,878 32,144 86,071 49 85,995 17,535 15,732 - 15,732 - 34.02
19 TCL Employee Welfare - Trust (4) March 2, 2010 INR - 1,729 9,373 7,644 8,375 17 17 2 15 - -
Notes - Part “A”
1) Reporting period for all subsidiaries is the same as holding company.

2) Share Capital/Partner’s Capital/Unitholder’s Capital, Reserves & Surplus, Total Assets, Total Liabilities and Investments are translated at exchange rate as on March 31, 2022 as: 1 USD = ` 75.5199 INR and 1 GBP = ` 99.1765 INR whereas
Turnover, Profit/(Loss) before Taxation, Provision for Taxation and Profit/(Loss) after Taxation are translated at annual average rate of 1 USD = ` 74.3767 INR and 1 GBP = ` 101.6134 INR.
3) Though Trusts would not be considered as body corporates under the Companies Act 2013, these have been disclosed as a measure of good governance.
4) “The Employee Welfare Trust (“”Trust””) has been constituted to administer the Tata Capital Limited Employee Stock Purchase/ Option Scheme (“”Scheme””), introduced by the Company, The Trust has been settled by way of a deed
executed between the Trustee(s) and the settler. The Trust has been constituted, inter area, for the benefit of the employees of the company, its subsdiaries and the holding company (i.e Eligible Employees), in accourdance with scheme.
The beneficiaries of the Trust are the Eligible Employees as defined in the Scheme and decided by the Nomination and Remuneration Committee of the Company. Thus, the Reserves & Surplus and Profit After Taxation belong entirely to the
Non-Controlling Interest holder i.e. the Eligible Employees. It may be noted that the Trust is a Subsidiary in accordance with Indian Accounting Standards (“”Ind As””), for FY 2021-22.”
5) Consolidated based on beneficial interest held.
Part “B”: Associates
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies
(` in lakh)
3. Shares of Associate held by the company 6. Networth
5. Reason why 7. Profit/Loss for the year
2. Date on which on the year end 4. Description attributable to
the Associate
1. Latest audited the Associate of how there shareholding
Sr. No Name of Associate/Joint Venture Amount of / Joint Venture
Balance Sheet date was associated or Extent of is significant as per latest i. Considered in ii. Not Considered in
No. of Shares investment has not been
acquired Holding % influence audited Balance Consolidation Consolidation
in Associate consolidated
Sheet
1 Tata Autocomp Systems Limited March 31, 2021 June 28, 2008 4,83,07,333 18,528 24.00% N.A. 33,728 9,641 40,171
2 Sea6 Energy Private Limited March 31, 2021 August 7, 2015 23,130 3,186 21.00% N.A. 454 (149) (550)
3 Indusface Private Limited March 31, 2021 April 21, 2020 4,51,721 3,500 35.70% N.A. 1,079 (166) (301)
4 Cnergyis Infotech India Pvt Ltd March 31, 2021 January 10, 87,415 5,709 33.07% Based on N.A. 463 0 1
2022 shareholding
5 Tema India Limited March 31, 2021 October 31, 19,85,524 4,201 35.01% N.A. 5,729 (18) (521)
2013
6 Alef Mobitech Solutions Private March 31, 2021 November 30, 4,96,276 1,588 25.70% N.A. 171 0 0
Limited 2015
7 Novalead Pharma Private Limited March 31, 2021 August 31, 2010 11,477 2,335 19.75% N.A. 406 0 0
8 Vortex Engineering Private March 31, 2021 December 13, 1,39,415 2,900 18.49% N.A. 565 - -
Limited 2011
9 Kapsons Industries Private March 31, 2021 December 24, 2,857 1 0.01% N.A. (1) - -
Limited 2014
10 Tata Technologies Limited March 31, 2021 May 4, 2011 18,73,253 4,707 4.48% N.A. 9,597 1,907 40,661
11 TVS Supply Chain Solutions March 31, 2021 September 3, 14,54,880 982 0.38% N.A. 202 50 11,705
Limited 2015 Based on
12 Fincare Business Services Limited March 31, 2021 March 21, 2017 25,47,910 734 0.76% rights under N.A. 542 0 (38)
13 Tata Projects Limited March 31, 2021 June 24, 2015 36,71,821 5,478 2.21% definitive N.A. 3,116 (382) (16,918)
14 Tata Play Limited (formerly Tata March 31, 2021 September 13, 1,00,72,871 5,242 0.72% documents N.A. (332) 83 11,528
Sky Limited) 2013
15 Fincare Small Finance Bank March 31, 2021 January 21, 2,38,980 145 0.11% N.A. 112 2 5,002
Limited 2021
16 Linux Laboratories Pvt Ltd March 31, 2021 February 22, 3,600 1,500 3.90% N.A. 315 (4) (97)
2021
17 Atulaya Healthacare Private March 31, 2021 July 20, 2021 100 1 0.01% N.A. - 0 170
Limited
1) Pluss Advanced Technologies Limited ceased to be Associate Company w.e.f. October 06, 2021.
2) Shriram Properties Limited ceased to be Associate Company w.e.f. December 22, 2021.
3) Roots Corporation Limited ceased to be Associate Company w.e.f. March 25, 2022.
For and on behalf of the Board of Directors

Saurabh Agrawal Malvika Sinha
(Chairman) (Director)
DIN: 02144558 DIN: 08373142
Varsha Purandare F. N. Subedar Aarthi Subramanian
(Director), Pune (Director) (Director)
DIN : 05288076 DIN: 00028428 DIN: 07121802
Rajiv Sabharwal Sarita Kamath Rakesh Bhatia
Place : Mumbai (Managing Director & CEO) (Head-Legal and Compliance & (Chief Financial Officer)
245
Date : April 26, 2022 DIN: 00057333 Company Secretary)
246
Standalone
Financial
Statements
247
Independent Auditor’s Report

To the Members of
Report on the audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Ind AS financial statements of Tata Capital
Limited (“the Company”), which comprise the standalone balance sheet as at 31 March
2022, and the standalone statement of profit and loss (including other comprehensive income),
standalone statement of changes in equity and standalone statement of cash flows for the year
then ended, and notes to the Standalone Ind AS Financial Statements, including a summary of
significant accounting policies and other explanatory information (“the Standalone Ind AS Financial
Statements”).
2. In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Standalone Ind AS Financial Statements give the information required by the Companies
Act, 2013 (“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 31
March 2022, and its profit and other comprehensive income, changes in equity and its cash flows
for the year then ended.
Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under
section 143(10) of the Act. Our responsibilities under those SAs are further described in the
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are
relevant to our audit of the Standalone Ind AS 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 opinion on the Standalone Ind AS Financial
Statements.
Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the Standalone Ind AS Financial Statements of the current year. These matters were
addressed in the context of our audit of the Standalone Ind AS Financial Statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
248
Impairment of investments in subsidiaries and associates
Charge: ` 852 Lakhs for year ended 31 March 2022
Provision: ` 7,069 Lakhs at 31 March 2022
Refer to the accounting policies in “Note 28 to the Standalone Ind AS Financial Statements: Impairment
of Investments at Cost and Financial Instruments”, “Note 7 to the Standalone Ind AS Financial
Statements: Investments” “Note 2(v) to the Standalone Ind AS Financial Statements: Significant
Accounting Policies- use of estimates”, “Note 39 to the Standalone Ind AS Financial Statements:
Financial Risk Review”
Recognition and measurement of investments in Design / controls
subsidiaries and associates involve significant  Understanding of the process,
management judgement. evaluating the design and testing the
As detailed in Note 7, the Company has investment operating effectiveness in respect of
in subsidiaries amounting to Rs. 9,27,372 Lakhs impairment / fair value assessment of
and associate companies amounting to Rs. 29,248 investments done by management.
Lakhs. Such investments are individually assessed for  Evaluating management’s controls
impairment as per the requirements of Ind AS 36 – over collation of relevant information
“Impairment of Assets.” used for determining estimates for
We have identified impairment testing of investments in impairment / fair value of investments.
subsidiaries and associates as a Key Audit Matter due
to the magnitude of the carrying value of investments in Substantive tests
subsidiaries and associates of the Company, which were  Testing appropriate implementation of
more than 84% of the total assets of the Company as on policy of impairment by management.
31 March 2022. Considering that the Company is a Core  Reconciling the financial information
Investment Company (‘CIC’) which is primarily required mentioned in impairment assessment
to hold investments and loans in group companies to underlying source details. Also,
as per Reserve Bank of India Master Directions for testing the reasonableness of
CICs, impairment testing of investments in such group management’s estimates considered in
companies continues to remain an area of focus for the such assessment.
audit. The key areas where we identified greater levels
of management judgement and therefore increased  Obtaining and reading latest audited/
levels of audit focus in the Company’s estimation of management certified financial
impairment are: statements of subsidiaries and
associates and noting key financial
 As part of such impairment assessment, attributes / potential indicators of
management considers financial information, impairment.
liquidity and solvency position of investments in
subsidiaries and associates. Management also  Challenge appropriateness and validity
considers other factors such as assessment of of management judgements, more so
the investee company’s operations, business amidst challenging times of pandemic
performance and modifications, if any, in by critically evaluating the risks that
the auditors’ report of such subsidiaries and have been addressed by management
associates. For some investee companies which in the valuation approach.
are classified as associates, the management  Obtaining independent valuation
sometimes involves an external valuer to assess reports of investments in associates
impairment. and investments held by the Funds and
 The Company has investments in Domestic involving a valuation specialist to test
Venture Capital Funds/ Alternative Investment the appropriateness of the fair value of
Funds (‘the Funds’), which are classified these investments, wherever necessary
as its subsidiaries, and the impairment and applicable, for assessing
assessment for such Funds is done by impairment thereon.
249
considering the net asset value of the respective  Assess the completeness, accuracy
Fund. The net asset value is determined based and relevance of data inputs for the
on the value of the underlying investments held said purpose.
by these Funds. The management involves
an external valuer to assess impairment or  Assessing the factual accuracy and
the fair value of the underlying investments. appropriateness of the disclosures
This process involves consideration of various made in the Standalone Ind AS
valuation methodologies such as income or market Financial Statements.
approach, includes data inputs, assumptions
and market related knowledge that requires
management judgement and expertise.
Hence, we determined that the impairment of
investments in subsidiaries and associates, has a high
degree of estimation uncertainty, with a potential range
of reasonable outcomes greater than our materiality for
the Standalone Ind AS Financial Statements as a whole.
Other Information
5. The Company’s Board of Directors are responsible for the other information. The other information
comprises the information included in the Company’s annual report but does not include the
Standalone Ind AS Financial Statements and our auditors’ report thereon. The Other Information is
expected to be made available to us after the date of this auditor’s report.
6. Our opinion on the Standalone Ind AS Financial Statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
7. In connection with our audit of the Standalone Ind AS Financial Statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Ind AS 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.
Management’s responsibility for the Standalone Ind AS Financial Statements

8. The Company’s Management and Board of Directors is responsible for the matters stated in section
134(5) of the Act, with respect to the preparation of these Standalone Ind AS Financial Statements
that give a true and fair view of the state of affairs, profit and other comprehensive income, changes
in equity and cash flows 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. 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 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 Ind AS Financial Statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
9. In preparing the Standalone Ind AS Financial Statements, the 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 the management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.
10. The Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
250
Auditor’s responsibilities for the audit of the Standalone Ind AS Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS Financial
Statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these Standalone Ind AS Financial
Statements.
12. As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
12.1. Identify and assess the risks of material misstatement of the Standalone Ind AS Financial
Statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
12.2. 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) the Act, we are
also responsible for expressing our opinion on whether the Company has adequate internal
financial controls with reference to Standalone Ind AS Financial Statements in place and the
operating effectiveness of such controls.
12.3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
12.4. Conclude on the appropriateness of the 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 Standalone Ind AS 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.
12.5. Evaluate the overall presentation, structure and content of the Standalone Ind AS Financial
Statements, including the disclosures, and whether the Standalone Ind AS Financial
Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
13. 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.
14. 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.
15. From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the Standalone Ind AS Financial Statements of the
current year 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.
251
Other Matters
16. Attention is drawn to the fact that the audited standalone financial Statements of the Company
for the year ended 31 March 2021 were audited by erstwhile auditors whose report dated 23 April
2021, expressed an unmodified opinion on those audited standalone financial statements. Our
opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements

17. As required by the Companies (Auditor’s Report) Order, 2020 (“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 A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
18. As required by Section 143(3) of the Act, we report that:
18.1. 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.
18.2. 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.
18.3. The standalone balance sheet, the standalone statement of profit and loss including other
comprehensive income, the statement of changes in equity and the standalone cash flow
statement dealt with by this Report are in agreement with the books of account.
18.4. In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Ind AS
specified under Section 133 of the Act.
18.5. On the basis of the written representations received from the directors as on 31 March 2022
taken on record by the Board of Directors, none of the directors is disqualified as on 31 March
2022 from being appointed as a director in terms of Section 164(2) of the Act.
18.6. With respect to the adequacy of the internal financial controls with reference to Standalone
Ind AS Financial Statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in “Annexure B”.
18.7. In our opinion and according to the information and explanations given to us, the remuneration
paid by the Company to its directors during the year is in accordance with the provisions of
Section 197 of the Act read with Schedule V to the Act.
19. 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, in our opinion and to the best of our information
and according to the explanations given to us:
19.1. The Company has disclosed the impact of pending litigations as at 31 March 2022 on its
financial position in its Standalone Ind AS Financial Statements – Refer Note 20 (ii) to the
Standalone Ind AS Financial Statements.
19.2. The Company has made provision, as required under the applicable law or Ind AS, for
material foreseeable losses, if any, on long-term contracts including derivative contracts –
Refer Note 48 to the Standalone Ind AS Financial Statements.
19.3. There were no amounts required to be transferred to the Investor Education and Protection
Fund by the Company.
19.4. The management has represented to us that to the best of their knowledge and belief that no
funds (which are material either individually or in aggregate) have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”)
252
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Based
on reasonable audit procedures adopted by us, nothing has come to our notice that such
representation contains any material misstatement.
19.5. The management has represented to us that to the best of their knowledge and belief that
no funds (which are material either individually or in aggregate) have been received by the
Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries. Based on reasonable
audit procedures adopted by us, nothing has come to our notice that such representation
contains any material misstatement.
19.6. In our opinion and according to the information and explanations given to us, the dividend
declared during the year is in compliance with Section 123 of the Act. Refer note no. 52 to the
Standalone Ind AS Financial Statements.

Hasmukh B Dedhia
Partner
April 26, 2022 UDIN: 22033494AHUQIJ1334
253
Annexure A to the Independent Auditor’s Report on the

Standalone Financial Statements of Tata Capital Limited for
(Referred to in paragraph 17 under ‘Report on Other Legal and Regulatory Requirements’ section
of our report of even date)
i. (a) The Company has maintained proper records showing full particulars including quantitative
details and situation of Property, Plant and Equipment (“PPE”).
The Company is maintaining proper records showing full particulars of intangible assets.
(b) The Company has a regular programme of physical verification of its PPE by which all PPE
are verified in a phased manner over a period of 3 years. In our opinion, this periodicity
of physical verification is reasonable having regard to the size of the Company and the
nature of its assets. Pursuant to the programme, certain PPE were physically verified by the
management during the previous year. In our opinion, and according to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us and on the
basis of our examination of the records of the Company, the title deeds of all the immovable
properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the lessee) disclosed in the financial statements are held in the
name of the Company.
(d) In our opinion and according to the information and explanations given to us, the Company
has not revalued its PPE (including Right of Use assets) or intangible assets or both during
the year.
(e) According to the information and explanations given to us and on the basis of our examination
of the records of the Company, no proceedings have been initiated or are pending against
the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and rules made thereunder. - Refer note 51 to the Standalone Ind AS
ii. (a) The Company is in the business of providing loans and does not have any physical
inventories. Accordingly, the provision of clause 3(ii)(a) of the Order is not applicable to it.
(b) In our opinion and according to the information and explanations given to us, the Company
does not have sanctioned working capital limits from banks or financial institutions which are
secured on the basis of any security. Accordingly, the provision of clause 3(ii)(b) of the Order
is not applicable to it.
iii. (a) Since the Company’s principal business is to give loans, the provisions of clause 3(iii)(a) of
the Order are not applicable it.
(b) In our opinion and according to the information and explanations given to us, the investments
made, guarantees provided, security given and the terms and conditions of the grant of all
loans and advances in the nature of loans and guarantees provided are not prejudicial to the
Company’s interest.
(c) In our opinion and according to the information and explanations given to us, in respect
of loans and advances in the nature of loans, the schedule of repayment of principal and
payment of interest has been stipulated and the repayments or receipts are regular during the
year.
(d) In our opinion and according to the information and explanations given to us, no amount is
overdue in respect of loans and advances in the nature of loans.
(e) Since the Company’s principal business is to give loans, the provisions of clause 3(iii)(e) of
the Order are not applicable to it.
(f) In our opinion and according to the information and explanations given to us, the Company
has granted loans or advances in the nature of loans to Promoters/Related Parties (as defined
254
in section 2(76) of the Act) which are either repayable on demand or without specifying any
terms or period of repayment.
(` In crores)
All Parties Promoters Related
Parties
Aggregate amount of loans/ advances in
nature of loans
- Repayable on demand (A) 779.88 - 779.88
- Agreement does not specify any terms or - - -
period of repayment (B)
Total (C) = (A+B) 779.88 - 779.88
Total Loans (D) 980.01 - 980.01
Percentage of loans/ advances in nature of 80%
loans to the total loans
iv. In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of sections 185 and 186 of the Act with respect to the loans given,
investments made, guarantees given and security provided.
v. In our opinion and according to the information and explanations given to us, the Company has not
accepted any deposits or amounts which are deemed to be deposits from the public during the year
in terms of directives issued by the Reserve Bank of India or the provisions of Sections 73 to 76 or
any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph
3(v) of the Order is not applicable to the Company.
vi. The Central Government has not prescribed the maintenance of cost records under sub-section (1)
section 148 of the Act for any of the services rendered by the Company. Accordingly, the provision
of clause 3(vi) of the Order is not applicable to the Company.
vii. (a) In our opinion and according to the information and explanations given to us, amounts
deducted/accrued in the books of account in respect of undisputed statutory dues including
Goods and Services Tax, provident fund, employees’ state insurance, income-tax, sales-tax,
service tax, duty of customs, duty of excise, value added tax, cess and any other statutory
dues have generally been regularly deposited by the Company with the appropriate authorities
in all cases during the year.
According to the information and explanations given to us, no undisputed amounts payable in
respect of provident fund, employees’ state insurance, income-tax, Goods and Services Tax,
duty of customs, cess and other material statutory dues were in arrears as at 31 March 2022
for a period of more than six months from the date they became payable.
(b) In our opinion and according to the information and explanations given to us, we report that
the following statutory dues have not been deposited with the appropriate authority on account
of any dispute.
Name of the Statute Nature of the Amount Period to Forum where dispute is
Dues which the pending
amount
relates
Income Tax Act, 1961 Income Tax 6.97 2016-17 Commissioner of Income
Tax (Appeals)
Income Tax Act, 1961 Income Tax 10.65 2017-18 Commissioner of Income
Tax (Appeals)
Income Tax Act, 1961 Income Tax 3.43 2019-20 Assessing Officer
Maharashtra Value Value Added Tax 0.02 2009-10 Tribunal (Commercial Tax)
Added Tax
Maharashtra Value Value Added Tax 1.74 2010-11 Joint Commissioner of
Added Tax Sales Tax – Appeal
255
Name of the Statute Nature of the Amount Period to Forum where dispute is
Dues which the pending
amount
relates
Maharashtra Value Value Added Tax 0.18 2011-12 Joint Commissioner of
Added Tax sales tax
Maharashtra Value Value Added Tax 0.33 2011-12 Deputy Commissioner
Added Tax
Maharashtra Value Value Added Tax 0.11 2011-12 Joint Commissioner (Trade
Added Tax and Taxes)
viii. In our opinion and according to the information and explanations given to us and on the basis of
our examination of the records of the Company, we confirm that we have not come across any
transactions not recorded in the books of account which have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) In our opinion, the Company has not defaulted in repayment of loans or other borrowings to
financial institutions, banks, government and dues to debenture holders or in the payment of
interest thereon to any lender.
(b) According to the information and explanations given to us and on the basis of our audit
procedures, we report that the Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority or any other lender.
(c) In our opinion and according to the information and explanations given to us, the Company
has not raised any money by way of term loans, during the year.
(d) According to the information and explanations given to us, and the procedures performed by
us, and on an overall examination of the financial statements of the Company, we report that
no funds raised on short-term basis have been used for long-term purposes by the Company.
(e) According to the information and explanations given to us and on an overall examination
of the financial statements of the Company, we report that the Company has not taken any
funds from any entity or person on account of or to meet the obligations of its subsidiaries,
associates or joint ventures.
(f) According to the information and explanations given to us and procedures performed by us,
we report that the Company has not raised loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
x. (a) The Company did not raise money by way of initial public offer or further public offer (including
debt instruments) during the year.
(b) In our opinion and according to the information and explanations given to us, the Company
has not made any preferential allotment / private placement of shares / fully / partly / optionally
convertible debentures during the year.
xi. (a) In our opinion and according to the information and explanations given to us, there has been
no fraud by the Company or any fraud on the Company that has been noticed or reported
during the year.
(b) According to the information and explanations given to us, no report under sub-section (12) of
section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under rule
13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) A
s represented to us by the management, there are no whistle blower complaints received by
the Company during the year.
xii. In our opinion and according to the information and explanations given to us, the Company is not a
Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and based on our examination of the
records of the Company, transactions with the related parties are in compliance with Sections 177
and 188 of the Act where applicable and details of such transactions have been disclosed in the
financial statements as required by the applicable accounting standards.
256
xiv. (a) In our opinion and based on our examination, the Company has an internal audit system
commensurate with the size and nature of its business.
(b) We have considered, during the course of our audit, the reports of the Internal Auditor(s) for
the period under audit in accordance with the guidance provided in SA 610 “Using the work of
Internal Auditors”.
xv. According to the information and explanations given to us, in our opinion during the year the
Company has not entered into any non-cash transactions with its directors or persons connected
with its directors. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company and
hence provisions of section 192 of the Act, 2013 are not applicable to the Company.
xvi. (a) The Company is required to be registered under Section 45-IA of the Reserve Bank of India
Act, 1934 and the Company has obtained the required registration.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities without
obtaining a valid CoR from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.]
(c) The Company is a Core Investment Company (“CIC”) as defined in the regulations made by
Reserve Bank of India. The Company has obtained the required registration with Reserve
Bank of India and continues to fulfil the criteria of a CIC.
(d) According to the information and explanation given to us by the management, the Group has
five CICs which are registered with the Reserve Bank of India and 1 CIC which is not required
to be registered with the Reserve Bank of India.
xvii. The Company has not incurred cash losses in the financial year and in the immediately preceding
financial year
xviii. During the year, M/s BSR & Co LLP, the Statutory auditors of the Company have resigned with
effect from 25 October, 2021 consequent to amended rules/regulations applicable to the Company.
(i.e. vide RBI circular dated 27 April 2021). As informed, there have been no issues, objections or
concerns raised by the said outgoing auditors.
xix. According to the information and explanations given to us and on the basis of the financial ratios,
ageing and expected dates of realization of financial assets and payment of financial liabilities,
other information accompanying the financial statements, our knowledge of the Board of Directors
and management plans and based on our examination of the evidence supporting the assumptions,
nothing has come to our attention, which causes us to believe that any material uncertainty exists as
on the date of the audit report that the Company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the Company. We
further state that our reporting is based on the facts up to the date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of one year from
the balance sheet date, will get discharged by the Company as and when they fall due.
xx. (a) According to the information and explanations given to us and based on our examination of
the records of the Company, it is not required to transfer any unspent amount pertaining to the
year under report to a Fund specified in Schedule VII to the Companies Act in compliance with
second proviso to sub section 5 of section 135 of the said Act.
(b) According to the information and explanations given to us and based on our examination of
the records of the Company, there is no amount which is remaining unspent under sub section
5 of section 135 of the Act pursuant to any ongoing CSR project.
xxi. Reporting under clause xxi of the Order is not applicable at the standalone level.
Hasmukh B Dedhia
Partner
257
Annexure B to the Independent Auditors’ report on the

Standalone Financial Statements of Tata Capital Limited for
(Referred to in paragraph 18.6 under ‘Report on Other Legal and Regulatory Requirements’
section of our report of even date)
Report on the Internal Financial Controls with reference to the aforesaid Standalone Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013.
Opinion
1. We have audited the internal financial controls with reference to the Standalone Financial
Statements of Tata Capital Limited (“the Company”) as at 31 March 2022 in conjunction with our
audit of the Standalone Financial Statements of the Company for the year ended on that date.
2. In our opinion, the Company has, in all material respects, an adequate internal financial controls
with reference to the Standalone Financial Statements and such internal financial controls were
operating effectively as at 31 March 2022, based on the internal controls 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 (“the Guidance Note”).
Management’s responsibility for Internal Financial Controls

3. The Company’s management is responsible for establishing and maintaining internal financial
controls based on the internal controls over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note. These
responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Act.
Auditor’s responsibility
4. Our responsibility is to express an opinion on the Company’s internal financial controls with
reference to the Standalone Financial Statements based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Auditing (“SA”), prescribed under section
143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference
to the Standalone Financial Statements. Those SAs and the Guidance Note require that we comply
with the ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference to the Standalone Financial Statements
were established and maintained and whether such controls operated effectively in all material
respects.
5. Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls system with reference to the Standalone Financial Statements and their
operating effectiveness. Our audit of internal financial controls with reference to the Standalone
Financial Statements included obtaining an understanding of internal financial controls with
reference to the 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 Standalone Financial Statements, whether
due to fraud or error.
6. 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 the Standalone
258
Meaning of Internal Financial Controls with reference to the Standalone Financial Statements
7. A Company’s internal financial controls with reference to the Standalone Financial Statements is
a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of Standalone Financial Statements for external purposes in accordance with
generally accepted accounting principles. A Company’s internal financial controls with reference to
the Standalone Financial Statements include 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 Standalone 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
Standalone Financial Statements.
Inherent Limitations of Internal Financial Controls with reference to the Standalone Financial
Statements
8. Because of the inherent limitations of internal financial controls with reference to the 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 the Standalone
Financial Statements to future periods are subject to the risk that the internal financial controls with
reference to the Standalone Financial Statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Hasmukh B Dedhia
Partner
259
STANDALONE BALANCE SHEET as at March 31, 2022

(` in lakh)
Note As at As at
Particulars
No. March 31, 2022 March 31, 2021
ASSETS
(I) Financial Assets
(a) Cash and cash equivalents 3 195 2,511
(b) Bank balance other than (a) above 4 13 16
(c) Receivables
(i) Trade receivables 5(i) 1,265 1,289
(ii) Other receivables 5(ii) 24 7
(d) Loans 6 97,510 1,27,948
(e) Investments 7 10,13,997 9,08,263
(f) Other financial assets 8 774 74
Total Financial Assets 11,13,778 10,40,108
(II) Non-Financial Assets
(a) Current tax assets (net) 2,222 826
(b) Deferred tax assets (net) 9 - 42
(c) Investment property 10 4,935 5,247
(d) Property, plant and equipment 10 3,504 3,745
(e) Other intangible assets 10 2 4
(f) Right of use assets 10 37 9
(g) Other non-financial assets 11 1,773 1,405
Total Non-Financial Assets 12,473 11,278
Total Assets 11,26,251 10,51,386
LIABILITIES AND EQUITY
LIABILITIES
(I) Financial Liabilities
(a) Payables
(i) Trade payables
- Total outstanding dues of micro enterprises and 12(i) 9 2
small enterprises
- Total outstanding dues other than micro enterprises 12 2,297 2,034
and small enterprises
(b) Debt securities 13 2,98,046 2,29,107
(c) Subordinated liabilities 14 1,10,983 1,15,740
(d) Lease liability 36 9
(e) Other financial liabilities 15 10,963 9,253
Total Financial Liabilities 4,22,334 3,56,145
(II) Non-Financial Liabilities
(a) Provisions 16 436 435
(b) Deferred tax liabilities (Net) 9 80 -
(c) Other non-financial liabilities 17 1,603 1,929
Total Non-Financial Liabilities 2,119 2,364
EQUITY
(a) Equity share capital 18 3,51,617 3,51,617
(b) Other equity 19 3,50,181 3,41,260
Total Equity 7,01,798 6,92,877
Total Liabilities and Equity 11,26,251 10,51,386
Summary of significant accounting policies 2
See accompanying notes forming part of the Standalone Financial Statements 3-53
For Khimji Kunverji & Co LLP Saurabh Agrawal F. N. Subedar Varsha Purandare
Hasmukh B. Dedhia Malvika Sinha Aarthi Subramanian Rajiv Sabharwal
(Head - Legal and (Chief Financial Officer)
Mumbai Compliance &
April 26, 2022 Company Secretary)
260
STANDALONE Statement of Profit and Loss for the year ended March 31, 2022
(` in lakh)
Note
No. March 31, 2022 March 31, 2021
I Revenue from operations
(i) Interest income 22 14,213 10,098
(ii) Dividend income 20,717 20,035
(iii) Rental income 1,901 1,901
(iv) Fee and commission income 23 5,214 4,458
(v) Net gain on fair value changes 24 518 477
(vi) Net gain on de-recognition of associate 923 -
I Total revenue from operations 43,486 36,969
II Other income 25 4,732 2,200
III Profit on sale of investment 2,971 6,048
IV Total income (I+II+III) 51,189 45,217
V Expenses
(i) Finance costs 27 28,970 25,513
(ii) Impairment on investments at cost and financial 28 730 1,898
instruments
(iii) Employee benefits expense 29 8,742 9,184
(iv) Depreciation, amortisation and impairment 10 710 727
(v) Other expenses 30 1,742 1,592
V Total expenses 40,894 38,914
VI Profit before exceptional items and tax (IV-V) 10,295 6,303
VII Exceptional Items - -
VIII Profit before tax (VI-VII) 10,295 6,303
IX Tax expenses :
(1) Current tax 1,826 1,538
(2) Deferred tax charge 159 98
IX Total Net tax expense 31 1,985 1,636
X Profit for the period (VIII-IX) 8,310 4,667
XI Other Comprehensive Income
(A) (i) Items that will not be reclassified to profit or loss
(a) Remeasurement of defined employee benefit plans 9 451
(ii) Income tax relating to items that will not be (2) (114)
reclassified to profit or loss
Subtotal A ((i) + (ii)) 7 337
(B) (i) Items that will be reclassified to profit or loss
(a) Debt instruments at fair value through Other (144) 458
Comprehensive Income - net change in fair value
(ii) Income tax relating to items that will be 38 (107)
reclassified to profit or loss
Subtotal B ((i) + (ii)) (106) 351
XI Total Other Comprehensive Income (A+B) (99) 688
261
STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in lakh)
Note
No. March 31, 2022 March 31, 2021
XII Total Comprehensive Income for the year (X+XI) 8,211 5,355
XIII Earnings per equity share: 32
Equity Share of par value ` 10/- each
(1) Basic (`) 0.24 0.13
(2) Diluted (`) 0.24 0.13
See accompanying notes forming part of the Standalone Financial 3-53
Statements
Mumbai Compliance &
262
STANDALONE STATEMENT of Changes In Equity
for the year ended March 31, 2022
a Equity share capital
(` in lakh)
Particulars
Balance as at April 1, 2020 3,51,617
Changes in equity share capital due to prior period errors -
Restated balance as at April 1, 2020 3,51,617
Changes in equity share capital during the period -
Balance as at March 31 2021 3,51,617
Balance as at April 1, 2021 3,51,617
Changes in equity share capital due to prior period errors -
Restated balance as at April 1, 2021 3,51,617
Changes in equity share capital during the period -
Balance as at March 31, 2022 3,51,617
b Other equity
(` in lakh)
Particulars Reserves and surplus ESOP General Debt instruments Remeasurement Total
Capital Capital Securities Special Retained Reserve reserve at fair value of defined benefit other
reserve Redemption premium Reserve earnings through Other (liability) / asset equity
Reserve Account Account Comprehensive
Income
Balance as at April 1, 2020 93 575 2,95,866 24,737 13,350 708 128 212 (263) 3,35,406
Changes in accounting policy / prior
period errors - - - - - - - - - -
Restated balance as at April 1, 2020 93 575 2,95,866 24,737 13,350 708 128 212 (263) 3,35,406
Profit for the year - - - - 4,667 - - - - 4,667
Other comprehensive income for the
year , net of income tax - - - - - - - 351 337 688
Total comprehensive income for the
year - - - - 4,667 - - 351 337 5,355
Transfer to special reserve account - - - 933 (933) - - - - -
ESOP option cost - - - - - 499 - - - 499
ESOP option cost transferred to general
reserve - - - - - (160) 160 - - -
Balance as at March 31, 2021 93 575 2,95,866 25,670 17,084 1,047 288 563 74 3,41,260
Balance as at April 1, 2021 93 575 2,95,866 25,670 17,084 1,047 288 563 74 3,41,260
Changes in accounting policy / prior
period errors - - - - - - - - - -
Restated balance as at April 1, 2021 93 575 2,95,866 25,670 17,084 1,047 288 563 74 3,41,260
Profit for the year - - - - 8,310 - - - - 8,310
Other comprehensive income for the
year, net of income tax - - - - - - - (106) 7 (99)
Total comprehensive income for the
year - - - - 8,310 - - (106) 7 8,211
Transfer to special reserve account - - - 1,699 (1,699) - - - - -
ESOP option cost - - - - - 709 - - - 709
Balance as at March 31, 2022 93 575 2,95,866 27,369 23,696 1,756 288 457 81 3,50,181
Mumbai Compliance &
263
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
1. CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 10,295 6,303
Adjustments for :
Dividend income (20,717) (20,035)
Interest income (14,213) (10,098)
Net gain/(loss) on fair value changes (518) (477)
Finance cost 28,970 25,513
Provision for employee benefits (106) (111)
Impairment loss allowance against stage I and stage (122) 79
II assets
Impairment loss / Write off for diminution in value of 227 1,809
investments
Impairment provision on trade receivables - 10
Distribution of interest income by private equity funds (2) (5)
Equity settled share based payments cost 709 499
Depreciation, amortisation and impairment 710 727
Profit on sale of investments (2,971) (6,048)
Net gain on de-recognition of associate (923) -
Net Impact on fair valuation of security deposit (406) (406)
received/ given
Net gain on derecognition of property, plant and (1) -
equipment
932 (2,240)
Interest paid (18,342) (12,584)
Interest received 14,316 10,017
Dividend received 20,717 20,035
Operating Profit before working capital changes 17,623 15,228
Adjustments for :
Decrease in trade receivables 7 197
Increase in other financial / non-financial assets (957) (44)
Decrease / (Increase) in loans 30,455 (19,598)
Increase / (Decrease) in trade payables 270 (99)
Increase in other financial / non-financial liabilities 1,205 1,017
and provisions
Cash generated from / (used in) operations 48,603 (3,299)
Taxes paid (3,224) (2,925)
NET CASH GENERATED FROM / (USED IN) 45,379 (6,224)
OPERATING ACTIVITIES
264
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022 (contd...)
(` in lakh)
Note
No.
March 31, 2022 March 31, 2021
2. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipments (134) (5)
(including capital advances)
Proceeds from derecognition of property, plant and 7 3
equipments
Distribution of interest income by private equity funds 2 5
Investment in subsidiary and associate companies (57,612) -
Proceeds from sale of investments in subsidiary and 2,986 -
associate companies
Investment in private equity funds (3,654) (10,582)
Proceeds from divestments by private equity funds 3,938 7,559
Investment in other entities (3) (5)
Investment in mutual funds (99,495) -
Proceeds from redemption of mutual funds 52,148 -
NET CASH USED IN INVESTING ACTIVITIES (1,01,817) (3,025)
3. CASH FLOW FROM FINANCING ACTIVITIES
Redemption of Cumulative Redeemable Preference (4,988) (30,740)
Shares
Dividend paid on Cumulative Redeemable (8,244) (9,074)
Preference Shares (including dividend distribution
tax)
Expenses on issue of Non Convertible Debentures (33) (179)
Proceeds from Debt securities 2,82,375 1,29,964
Repayment of Debt securities (2,15,124) (78,351)
Premium on issue of Debt securities 159 -
Proceeds from Security Deposit 9 -
Repayment of lease liability (32) (33)
NET CASH GENERATED FROM FINANCING 54,122 11,587
ACTIVITIES
Net increase / (decrease) in cash and (2,316) 2,338
cash equivalents
CASH AND CASH EQUIVALENTS AS AT THE 2,511 173
BEGINNING OF THE YEAR
CASH AND CASH EQUIVALENTS AS AT THE END OF 3&4 195 2,511
THE YEAR
Reconciliation of cash and cash equivalents as
above with cash and bank balances
Cash and bank balances as at the end of the year 195 2,511
Add: Restricted Cash (Refer note 4) 13 16
Cash and bank balances as at the end of the year 208 2,527
265
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022 (contd...)
(` in lakh)
Changes in Liabilities arising from financing activities
Particulars Debt Borrowing Subordinated

securities (Other than liabilities
debt securities)
Balance as at April 1, 2020 1,75,216 - 1,46,146
Net change due to proceeds/ (repayment) 51,613 - (30,740)
Others * 2,278 - 335
Balance as at March 31, 2021 2,29,107 - 1,15,740
Net change due to proceeds/ (repayment) 67,409 - (4,988)
Others * 1,530 - 231
Balance as at March 31, 2022 2,98,046 - 1,10,983
See accompanying notes forming part of the Standalone 3-53
Financial Statements
* Others includes the effect of interest accrued but not due, amortisation of borrowing cost, amortisation
of premium/discount on CPs/NCDs.
Mumbai Compliance &
266
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
1. Corporate Information
Tata Capital Limited (the "Company" or “TCL”) is a subsidiary of Tata Sons Private Limited. In May
2012, TCL was registered with the Reserve Bank of India (“RBI”) as a Systemically Important Non-
Deposit Accepting Core Investment Company (“CIC”).
As a CIC, TCL is a primary holding company, holding investments in its subsidiaries and other
group companies and carries out only such activities as are permitted under the guidelines issued
by RBI for CICs. The Company’s subsidiaries are engaged in a wide array of businesses in the
financial services sector.
The Company is domiciled in India and incorporated under the Companies Act, 2013 and listed its
non-convertible debentures with National Stock Exchange Limited.
2. Basis of preparation
i. Statement of compliance
These financial statements have been prepared in accordance with the Indian Accounting
Standards (IND AS) as per the Companies (Indian Accounting Standards) Rules, 2015,
as amended by the Companies (Indian Accounting Standards) Rules, 2016, notified under
Section 133 of the Companies Act, 2013 (the "Act"), other relevant provisions of the Act,
guidelines issued by the Reserve Bank of India as applicable to a CICs and other accounting
principles generally accepted in India. Any application guidance / clarifications / directions
issued by RBI or other regulators are implemented as and when they are issued / applicable,
the guidance notes/announcements issued by the Institute of Chartered Accountants of India
(ICAI) are also applied except where compliance with other statutory promulgations require a
different treatment.
Accounting policies have been consistently applied except where a newly issued Ind AS is
initially adopted or a revision to an existing Ind AS required a change in the accounting policy
hitherto in use. The standalone financial statements were authorised for issue by the Board of
Directors (BOD) on April 26, 2022.
ii. Presentation of standalone financial statements

The Balance Sheet, Statement of Profit and Loss and Statement of Changes in Equity are
prepared and presented in the format prescribed in the Division III of Schedule III of the
Companies Act, 2013 (the ‘Act’). The Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS.
A summary of the significant accounting policies and other explanatory information is in
accordance with the Companies (Indian Accounting Standards) Rules, 2015 as specified under
Section 133 of the Companies Act, 2013 (the ‘Act’) including applicable Indian Accounting
Standards (Ind AS) and accounting principles generally accepted in India.
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.
Amounts in the standalone financial statements are presented in Indian Rupees in Lakh, which
is also the Company’s functional currency and all amounts have been rounded off to the
nearest lakhs unless otherwise indicated.
iii. Basis of measurement

The standalone financial statements have been prepared on the historical cost basis except
for certain financial instruments that are measured at fair values at the end of each reporting
period as explained in the accounting policies below.
267
Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services at the time of entering into the transaction.
iv. Measurement of fair values:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date.
A number of the Company’s accounting policies and disclosures require the measurement of
fair values, for both financial and non-financial assets and liabilities.
Fair value for measurement and/or disclosure purposes for certain items in these standalone
financial statements is determined considering the following measurement methods:
Items Measurement basis

Certain financial assets and liabilities Fair value
Net defined benefit (asset)/liability Fair value of planned assets less present
value of defined benefit obligations
Property plant and equipment Value in use under Ind AS 36
Fair values are categorized into different levels (Level 1, Level 2 or Level 3) in a fair value
hierarchy based on the inputs used in the valuation techniques. When measuring the fair
value of an asset or a liability, the Company uses observable market data as far as possible.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of
the fair value hierarchy, then the fair value measurement is categorized in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The levels are described as follows:
a) Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the Company can access at the measurement date
b) Level 2: inputs are inputs, other than quoted prices included within level 1, that are
observable for the asset or liability, either directly or indirectly; and
c) Level 3: inputs are unobservable inputs for the valuation of assets or liabilities that the
Company can access at the measurement date.
The Company recognizes transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.
For details relating to Valuation model and framework used for fair value measurement and
disclosure of financial instruments refer note 38.
v. Use of estimates and judgements

The preparation of standalone financial statements in conformity with Ind AS requires the
management of the Company to make judgements, assumptions and estimates that affect
the reported balances of assets and liabilities and disclosures relating to the contingent
liabilities as at the date of the standalone financial statements and reported amounts of
income and expenses for the reporting period. The application of accounting policies that
require critical accounting estimates involving complex and subjective judgments and the use
of assumptions in the standalone financial statements have been disclosed as applicable in
the respective notes to accounts. Accounting estimates could change from period to period.
Future results could differ from these estimates. Appropriate changes in estimates are made
268
as the Management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates are reflected in the standalone financial statements in the period
in which changes are made and, if material, their effect are disclosed in the notes to the
standalone financial statements.
Judgements:
Information about judgements made in applying accounting policies that have most significant
effect on the amount recognised in the standalone financial statements is included in the
following notes:
– Note x - classification of financial assets: assessment of the business model within which
the assets are held and assessment of whether the contractual terms of the financial
asset are solely payments of principal and interest on the principal amount outstanding.
Assumptions and estimation of uncertainties:

Information about assumptions and estimation of uncertainties that have a significant risk of
resulting in a material adjustment in the year ending March 31, 2022 are included in the
following notes:
– Note x - impairment test of non-financial assets: key assumption underlying recoverable
amounts.
– Note xii - useful life of property, plant, equipment and intangibles.
– Note xix - Significant judgments are involved in determining the provision for income
taxes, including amount expected to be paid / recovered for uncertain tax positions
– Note xxi - recognition and measurement of provisions and contingencies: key
assumptions about the likelihood and magnitude of an outflow of resources.
– Note 34 - measurement of defined benefit obligations: key actuarial assumptions.
– Note 38 - determination of the fair value of financial instruments with significant
unobservable inputs.
vi. Interest
Interest consists of consideration for the time value of money, for the credit risk associated
with the principal amount outstanding during a particular period and for other basic lending
risks and costs, as well as a profit margin.
Interest income and expense are recognised using the effective interest method. The effective
interest rate (EIR) is the rate that exactly discounts estimated future cash flows through the
expected life of the financial instrument to the gross carrying amount of the financial asset or
amortised cost of the financial liability.
Calculation of the EIR includes all fees paid or received that are incremental and directly
attributable to the acquisition or issue of a financial asset or liability.
Interest income is calculated by applying the EIR to the gross carrying amount of non-credit
impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for
any expected credit loss allowance). For credit-impaired financial assets the interest income
is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets
{i.e. at the amortised cost of the financial asset after adjusting for any expected credit loss
allowance (ECLs)}. The Company assesses the collectability of the interest on credit impaired
assets at each reporting date. Based on the outcome of such assessment, the interest income
accrued on credit impaired financial assets are either accounted for as income or written off as
per the write off policy of the Company.
The interest cost is calculated by applying the EIR to the amortised cost of the financial
liability.
269
The ‘amortised cost’ of a financial asset or financial liability is the amount at which the financial
asset or financial liability is measured on initial recognition minus the principal repayments,
plus or minus the cumulative amortisation using the effective interest method of any difference
between that initial amount and the maturity amount and, for financial assets, adjusted for any
expected credit loss allowance.
The ‘gross carrying amount of a financial asset’ is the amortised cost of a financial asset
before adjusting for any expected credit loss allowance.
vii. Income not integral to effective interest rate (EIR) method under Ind AS 109 and Fee
and commission income from services and distribution of financial products:
Revenue in the form of income from financial advisory, income from private equity assets
under management, distribution from private equity funds, income from managerial and
marketing services (other than for those items to which Ind AS 109 - Financial Instruments and
Ind AS 17 – Leases are applicable) is measured at fair value of the consideration received or
receivable, in accordance with Ind AS 115 - Revenue from contracts with customers.
The Company recognises revenue from contracts with customers based on a five-step model
as set out in Ind AS 115:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between
two or more parties that creates enforceable rights and obligations and sets out the criteria for
every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise
in a contract with a customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration
to which the Company expects to be entitled in exchange for transferring promised goods or
services to a customer, excluding amounts collected on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a
contract that has more than one performance obligation, the Company allocates the
transaction price to each performance obligation in an amount that depicts the amount of
consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.
Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.
Advisory Fees are charged to offshore investment manager for providing non-exclusive
non-binding support services for transactions by private equity funds. Income from advisory
services are accounted using cost plus mark-up as and when the service is rendered,
provided there is reasonable certainty of its ultimate realisation.
Management Fees are charged for providing managerial and marketing services and
are accounted using cost plus mark-up as and when the underlying costs are incurred.
Reimbursement of expenses incurred for rendering services are reduced from such expense
heads, provided there is reasonable certainty of its ultimate realisation.
Income from property management is recognised on a straight-line basis to the extent the
rental income is deemed collectible.
Private Equity Asset Management fees are charged for assets under management and are
recognised as contracted under investment management agreement with each Private Equity
Fund.
Distributions from Private Equity Funds are accounted when received.
viii. Dividend income

Income from dividend on investment in equity and preference shares of corporate bodies
and units of mutual funds is accounted when the Company’s right to receive dividend is
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established. Dividend income on financial assets measured at fair value through profit and
loss is presented under Dividend income and not as a part of Net gains/(losses) on fair value
changes
ix. Leases
Leases are classified as operating lease where significant portion of risks and reward of
ownership of assets acquired under lease is retained by the lessor.
Leases of assets under which substantially all the risks and rewards of ownership are
effectively retained by the lessee are classified as finance lease.
Asset given on lease:

Assets given under finance lease are recognised as a receivable at an amount equal to the
net investment in the lease. Lease rentals are apportioned between principal and interest on
the internal rate of return. The principal amount received reduces the net investment in the
lease and interest is recognised as revenue.
Under operating leases (excluding amount for services such as insurance and maintenance),
lease rentals are recognised on a straight-line basis over the lease term, except for increase in
line with expected inflationary cost increases.
Asset taken on lease:

The Company’s assets taken on lease primarily consist of leases for properties.
As a lessee, the Company previously classified leases as operating or finance leases based
on its assessment of whether the lease transferred substantially all the risks and rewards of
ownership. Under Ind AS 116, the Company recognises right-of-use assets and lease liabilities
for certain type of its leases.
The Company presents right-of-use assets and lease liabilities separately on the face of the
Balance sheet. Lease payments (including interest) have been classified as financing cashflows.
The Company recognises a right-of-use asset and a lease liability at the lease commencement
date. The cost of the right-of-use asset measured at inception shall comprise of the amount
of the initial measurement of the lease liability adjusted for any lease payments made at or
before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or site on which it is located.
The right-of-use asset is subsequently measured at cost less any accumulated depreciation
and accumulated impairment loss, if any, and adjusted for certain re-measurements of the
lease liability.
The right-of-use assets is depreciated using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset. The estimated useful
lives of right-of-use assets are determined on the same basis as those of property, plant and
equipment. Right-of-use assets are tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in the
When a right-of-use asset meets the definition of investment property, it is presented in
investment property.
The Company measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot
be readily determined, the Company uses incremental borrowing rate.
The lease liability is subsequently increased by the interest cost on the lease liability and
decreased by lease payment made. The carrying amount of lease liability is remeasured to
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reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease
payments. A change in the estimate of the amount expected to be payable under a residual
value guarantee, or as appropriate, changes in the assessment of whether a purchase or
extension option is reasonably certain to be exercised or a termination option is reasonably
certain not be exercised.
The Company has applied judgement to determine the lease term for some lease contracts in
which it is a lessee that include renewal options. The assessment of whether the Company is
reasonably certain to exercise such options impacts the lease term, which significantly affects
the amount of lease liabilities and right of use assets recognised. The discounted rate is
generally based on incremental borrowing rate specific to the lease being evaluated.
x. Financial Instruments
Financial assets and financial liabilities are recognised in the Company’s balance sheet on
trade date, i.e. when the Company becomes a party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs
and revenues that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities measured 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 and revenues of
financial assets or financial liabilities carried at fair value through the profit or loss account are
recognised immediately in the Statement of Profit or Loss. Trade Receivables are measured at
transaction price.
a) Financial assets
Classification
On initial recognition, depending on the Company’s business model for managing the
financial assets and its contractual cash flow characteristics, a financial asset is classified
as measured at;
1) amortised cost;
2) fair value through other comprehensive income (FVTOCI); or
3) fair value through profit and loss (FVTPL).
The classification depends on the entity’s business model for managing the financial
assets and the contractual terms of the cash flows. Financial assets are not reclassified
subsequent to their initial recognition, except if and in the period the Company changes
its business model for managing financial assets.
A financial asset is measured at amortized cost using Effective Interest Rate (EIR)
method if it meets both of the following conditions and is not recognised as at FVTPL:
- The asset is held within a business model whose objective is to hold assets 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 (SPPI) on the principal
amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company
may irrevocably elect to present subsequent changes in the investment’s fair value in
OCI (designated as FVTOCI – equity investment). This election is made on investment –
by – investment basis.
All financials assets not classified and measured at amortized cost or FVTOCI as
described above are measured at FVTPL. On initial recognition, the Company may
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irrevocably designate the financials assets that otherwise meets the requirements to
be measured at amortized cost or at FVTOCI or at FVTPL, if doing so eliminates or
significantly reduces the accounting mismatch that would otherwise arise.
Investment in associates are recognised at cost.
Business model assessment

The Company makes an assessment of the objective of the business model in which a
financial asset is held at a portfolio level because this best reflects the way the business
is managed, and information is provided to management. The information considered
includes:
– the stated policies and objectives for the portfolio and the operation of those
policies in practice.
– how the performance of the portfolio is evaluated and reported to the Company’s
management;
– the risks that affect the performance of the business model (and the financial assets
held within that business model) and how those risks are managed;
– the frequency, volume and timing of sales of financial assets in prior periods, the
reasons for such sales and expectation about future sales activity.
– How managers of the business are compensated (e.g. whether the compensation
is based on the fair value of the assets managed or on the contractual cash flows
collected).
At initial recognition of a financial asset, the Company determines whether newly
recognized financial assets are part of an existing business model or whether they reflect
a new business model. The Company reassess its business models each reporting
period to determine whether the business models have changed since the preceding
period.
Assessment whether contractual cash flows are solely payments of principal and
interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the
financial asset on initial recognition. That principal amount may change over the life
of the financial assets (e.g. if there are payments of principal). Amount of ‘Interest’ is
defined as consideration for the time value of money and for the credit risk associated
with the principal amount outstanding during a particular period and for other basic
lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit
margin.
In assessing whether the contractual cash flows are solely payments of principal and
interest, the Company considers the contractual terms of the instrument. This includes
assessing whether the financial asset contains a contractual term that could change the
timing or amount of contractual cash flows such that it would not meet this condition. In
making this assessment, the Company considers:
– Contingent events that would change the amount or timing of cash flows;
– Terms that may adjust the contractual coupon rate, including variable interest rate
features;
– Prepayment and extension features; and
– Terms that limit the Company’s claim to cash flows from specified assets.
Contractual cash flows that are SPPI are consistent with a basic lending arrangement.
Contractual terms that introduce exposure to risks or volatility in the contractual cash flows
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that are unrelated to a basic lending arrangement, such as exposure to changes in equity
prices or commodity prices, do not give rise to contractual cash flows that are SPPI.
A prepayment feature is consistent with the solely payments of principal and interest
criterion if the prepayment amount substantially represents unpaid amounts of principal
and interest on the principal amount outstanding, which may include reasonable
additional compensation for early termination of the contract. Additionally, for a financial
asset acquired at a significant discount or premium to its contractual par amount, a
feature that permits or requires prepayment at an amount that substantially represents
the contractual par amount plus accrued (but unpaid) contractual interest (which may
also include reasonable additional compensation for early termination) is treated as
consistent with this criterion if the fair value of the prepayment feature is insignificant at
initial recognition.
Subsequent measurement and gains and losses

Financial assets These assets are subsequently measured at fair value. Net gains and
at FVTPL losses, including any interest or dividend income, are recognised in
the statement of profit or loss. The transaction costs and fees are also
recorded related to these instruments in the statement of profit and loss.
Financial assets These assets are subsequently measured at amortised cost using
at amortised cost the effective interest method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange gains and
losses and impairment are recognised in the statement of profit
or loss. Any gain or loss on de-recognition is recognised in the
statement of profit or loss.
Financial Financial assets that are held within a business model whose
assets (other objective is achieved by both, selling financial assets and collecting
than Equity contractual cash flows that are solely payments of principal and
Investments) at interest, are subsequently measured at fair value through other
FVTOCI comprehensive income. Fair value movements are recognized in the
other comprehensive income (OCI). Interest income measured using
the EIR method and impairment losses, if any are recognised in the
statement of Profit and Loss. On derecognition, cumulative gain or
loss previously recognised in OCI is reclassified from the equity to
other income’ in the statement of Profit and Loss.
Equity These assets are subsequently measured at fair value. Dividends
investments at are recognised as income in the Statement of Profit and Loss unless
FVTOCI the dividend clearly represents a recovery of part of the cost of the
investment. Other net gains and losses are recognised in OCI and
are not reclassified to profit or loss.
Reclassifications within classes of financial assets

Financial assets are not reclassified subsequent to their initial recognition, except in the
period after the Company changes its business model for managing financial assets.
The classification and measurement requirements of the new category apply
prospectively from the first day of the first reporting period following the change in
business model that result in reclassifying the Company’s financial assets.
Impairment of Financial Assets:

Impairment approach
Overview of the Expected Credit Losses (ECL) principles:
The Company records allowance for expected credit losses for all loans (including those
classified as measured at FVTOCI), together with loan commitments, in this section
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all referred to as ‘financial instruments’ other than those measured at FVTPL. Equity
instruments are not subject to impairment under Ind AS 109.
The ECL allowance is based on the credit losses expected to arise over the life of the
asset (the lifetime expected credit loss or LTECL), unless there has been no significant
increase in credit risk since origination, in which case, the allowance is based on the 12
months’ expected credit loss (12m ECL). The Company’s policies for determining if there
has been a significant increase in credit risk are set out in Note 39.
The 12m ECL is the portion of LTECLs that represent the ECLs that result from default
events on a financial instrument that are possible within the 12 months after the reporting
date.
Both LTECLs and 12m ECLs are calculated on an individual/portfolio basis having similar
risk characteristics, depending on the nature of the underlying portfolio of financial
instruments.
The Company has established a policy to perform an assessment, at the end of each
reporting period, of whether a financial instrument’s credit risk has increased significantly
since initial recognition, by considering the change in the risk of default occurring over
the remaining life of the financial instrument.
Based on the above process, the Company categorises its loans into Stage 1, Stage 2
and Stage 3, as described below:
Stage 1: When loans are first recognised, the Company recognises an allowance based
on 12mECLs. This also include facilities where the credit risk has improved, and the loan
has been reclassified from Stage 2.
Stage 2: When a loan has shown a significant increase in credit risk since origination,
the Company records an allowance for the LTECLs. Stage 2 loans also include facilities,
where the credit risk has improved, and the loan has been reclassified from Stage 3.
Stage 3: Loans considered credit-impaired. A default on a financial asset is when the
counterparty fails to make the contractual payments within 90 days of when they fall
due. Accordingly, the financial assets shall be classified as Stage 3, if on the reporting
date, it has been 90 days past due. Further if the customer has requested forbearance
in repayment terms, such restructured, rescheduled or renegotiated accounts are also
classified as Stage 3. Non-payment on another obligation of the same customer is also
considered as a Stage 3. The Company records an allowance for the LTECLs.
Undrawn loan commitments

Undrawn loan commitments are commitments under which, over the duration of the
commitment, the Company is required to provide a loan with pre-specified terms to the
customer. Undrawn loan commitments are in the scope of the ECL requirements.
Financial guarantee contract:

A financial guarantee contract requires the Company to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make
payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by the Company are initially measured at their fair
values and, if not designated as at FVTPL and not arising from a transfer of a financial
asset, are subsequently measured at the higher of:
● the amount of the loss allowance determined in accordance with Ind AS 109; and
● the amount initially recognised less, where appropriate, cumulative amount of
income recognised in accordance with the Company’s revenue recognition policies.
The Company has not designated any financial guarantee contracts as FVTPL.
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Company’s ECL for financial guarantee is estimated based on the present value of the
expected payments to reimburse the holder for a credit loss that it incurs. The shortfalls
are discounted by the interest rate relevant to the exposure.
The Measurement of ECLs

The Company calculates ECLs based on a probability-weighted scenario to measure the
expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is
the difference between the cash flows that are due to an entity in accordance with the
contract and the cash flows that the entity expects to receive.
The mechanics of the ECL calculations are outlined below and the key elements are, as
follows:
Probability of Default (PD): The Probability of Default is an estimate of the likelihood of default
over a given time horizon. A default may only happen at a certain time over the assessed
period, if the facility has not been previously derecognised and is still in the portfolio.
Exposure at Default (EAD): The Exposure at Default is an estimate of the exposure
at a future default date, taking into account expected changes in the exposure after
the reporting date, including repayments of principal and interest, whether scheduled by
contract or otherwise, expected drawdowns on committed facilities, and accrued interest
from missed payments.
Loss Given Default (LGD): The Loss Given Default is an estimate of the loss arising in
the case where a default occurs at a given time. It is based on the difference between
the contractual cash flows due and those that the lender would expect to receive,
including from the realisation of any collateral. It is usually expressed as a percentage of
the EAD.
Impairment losses and releases are accounted for and disclosed separately from
modification losses or gains that are accounted for as an adjustment of the financial
asset’s gross carrying value
When estimating LTECLs for undrawn loan commitments, the Company estimates the
expected portion of the loan commitment that will be drawn down over its expected life.
The ECL is then based on the present value of the expected shortfalls in cash flows if
the loan is drawn down, based on a probability-weightage. The expected cash shortfalls
are discounted at an approximation to the expected EIR on the loan.
The above calculated PDs, EAD and LGDs are reviewed and changes in the forward
looking estimates are analysed during the year.
The mechanics of the ECL method are summarised below:
Stage 1 The 12 months ECL is calculated as the portion of LTECLs that represent the
ECLs that result from default events on a financial instrument that are possible within the
12 months after the reporting date. These expected 12-months default probabilities are
applied to a forecast EAD and multiplied by the expected LGD.
Stage 2 When a loan has shown a significant increase in credit risk since origination,
the Company records an allowance for the LTECLs. The mechanics are similar to those
explained above, but PDs and LGDs are estimated over the lifetime of the instrument.
The expected cash shortfalls are discounted by the contractual or portfolio EIR as the
case may be.
Stage 3 For loans considered credit-impaired, the Company recognises the lifetime
expected credit losses for these loans. The method is similar to that for stage 2 assets,
with the PD set at 100%.
In ECL model the Company relies on broad range of forward looking information for
economic inputs.
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The Company recognises loss allowance for expected credit losses (ECLs) on all
financial assets at amortised cost that are debt instruments, debt financial assets at fair
value through other comprehensive income, loan commitments and financial guarantee
contracts. No impairment loss is recognised on equity investments.
When determining whether credit risk of a financial asset has increased significantly
since initial recognition and when estimating expected credit losses, the Company
considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and
analysis, including on historical experience and forward-looking information .
Impairment of Trade receivables

Impairment allowance on trade receivables is made on the basis of life time credit loss
method, in addition to specific provision considering the uncertainty of recoverability of
certain receivables.
Write-off
Impaired loans and receivables are written off, against the related allowance for loan
impairment on completion of the Company’s internal processes and when the Company
concludes that there is no longer any realistic prospect of recovery of part or all the
loan. For loans that are individually assessed for impairment, the timing of write off is
determined on a case by case basis. A write-off constitutes a de-recognition event. The
Company has a right to apply enforcement activities to recover such written off financial
assets. Subsequent recoveries of amounts previously written off are credited to the
Presentation of ECL allowance for financial asset:

Type of Financial asset Disclosure
Financial asset measured at amortised Shown as a deduction from the gross
cost carrying amount of the assets
Financial assets measured at FVTOCI Shown separately under the head
“provisions”
Loan commitments and financial guarantee Shown separately under the head
contracts “provisions”
Modification and De-recognition of financial assets

Modification of financial assets
A modification of a financial asset occurs when the contractual terms governing the
cash flows of a financial asset are renegotiated or otherwise modified between initial
recognition and maturity of the financial asset. A modification affects the amount and/or
timing of the contractual cash flows either immediately or at a future date. The Company
renegotiates loans to customers in financial difficulty to maximise collection and minimise
the risk of default. A loan forbearance is granted in cases where although the borrower
made all reasonable efforts to pay under the original contractual terms, there is a high
risk of default or default has already happened and the borrower is expected to be able
to meet the revised terms. The revised terms in most of the cases include an extension
of the maturity of the loan, changes to the timing of the cash flows of the loan (principal
and interest repayment), reduction in the amount of cash flows due (principal and
interest forgiveness). Such accounts are classified as Stage 3 immediately upon such
modification in the terms of the contract.
Not all changes in terms of loans are considered as renegotiation and changes in terms
of a class of obligors that are not overdue is not considered as renegotiation and is not
subjected to deterioration in staging.
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De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognised when:
1) the rights to receive cash flows from the asset have expired, or
2) the Company has transferred its rights to receive cash flows from the asset and
substantially all the risks and rewards of ownership of the asset, or the Company
has neither transferred nor retained substantially all the risks and rewards of
ownership of the asset, but has transferred control of the asset.
If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognise the financial asset and
also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset, the difference between the carrying amount of the
asset (or the carrying amount allocated to the portion of the asset derecognised) and the
sum of (i) the consideration received (including any new asset obtained less any new
liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is
Any cumulative gain/loss recognised in OCI in respect of equity investment securities
designated as at FVTOCI is not recognised in profit or loss on derecognition of such
securities. Any interest in transferred financial assets that qualify for derecognition that is
created or retained by the Group is recognised as a separate asset or liability.
b) Financial liability and Equity

Debt and equity instruments that are issued are classified as either financial liabilities or
as equity in accordance with the substance of the contractual arrangement.
an entity after deducting all its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs.
Financial liabilities are subsequently measured at the amortised cost using the effective
interest method, unless at initial recognition, they are classified as fair value through
profit and loss. Interest expense are recognised in the Statement of Profit and Loss. Any
gain or loss on derecognition is also recognised in the Statement of Profit or Loss.
A financial liability is a contractual obligation to deliver cash or another financial asset or
to exchange financial assets or financial liabilities with another entity under conditions
that are potentially unfavourable to the Company or a contract that will or may be settled
in the Company’s own equity instruments and is a non-derivative contract for which the
Company is or may be obliged to deliver a variable number of its own equity instruments,
or a derivative contract over own equity that will or may be settled other than by the
exchange of a fixed amount of cash (or another financial asset) for a fixed number of the
Company’s own equity instruments.
Classification
The Company classifies its financial liability as "Financial liability measured at amortised
cost" except for those classified as financial liabilities measured at fair value through
profit and loss (FVTPL).
De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss.
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Equity
an entity after deducting all its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs. A conversion option that
will be settled by the exchange of a fixed amount of cash or another financial asset for a
fixed number of the Company’s own equity instruments is an equity instrument.
No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of
the Company’s own equity instruments.
xi. Cash, Cash equivalents and bank balances
Cash, Cash equivalents and bank balances include fixed deposits (with an original maturity
of three months or less from the date of placement), margin money deposits, and earmarked
balances with banks which are carried at amortised cost. Short term and liquid investments
which are not subject to more than insignificant risk of change in value, are included as part of
cash and cash equivalents.
xii. Property, plant and equipment (PPE)
a) PPE
PPE acquired by the Company are reported at acquisition cost less accumulated
depreciation and accumulated impairment losses, if any. Estimated cost of dismantling
and removing the item and restoring the site on which its located does not arise for
owned assets. The acquisition cost includes any cost attributable for bringing an asset
to its working condition net of tax/duty credits availed, which comprises of purchase
consideration and other directly attributable costs of bringing the assets to their working
condition for their intended use. PPE is recognised when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. Subsequent expenditure on PPE after its purchase
is capitalized only if it is probable that the future economic benefits will flow to the
enterprise and the cost of the item can be measured reliably.
b) Capital work-in-progress
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as
“capital work-in-progress” and carried at cost, comprising direct cost, related incidental
expenses and attributable interest.
c) Other Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits
that are attributable to the asset will flow to the Company and the cost of the asset can
be measured reliably. Intangible assets are stated at original cost net of tax/duty credits
availed, if any, less accumulated amortisation and cumulative impairment. Administrative
and other general overhead expenses that are specifically attributable to the acquisition
of intangible assets are allocated and capitalised as a part of the cost of the intangible
assets. Expenses on software support and maintenance are charged to the Statement of
Profit and Loss during the year in which such costs are incurred.
d) Intangible assets under development
Intangible assets not ready for the intended use on the date of Balance Sheet are
disclosed as “Intangible assets under development”.
e) Depreciation and Amortisation

Depreciable amount for tangible property, plant and equipment is the cost of an asset, or
other amount substituted for cost, less its estimated residual value. The residual value of
each asset given on Operating lease is determined at the time of recording of the lease
asset. If the residual value of the Operating lease asset is higher than 5%, the Company
has a justification in place for considering the same.
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Depreciation on tangible property, plant and equipment deployed for own use has been
provided on the straight-line method as per the useful life prescribed in Schedule II to
the Companies Act, 2013 except in respect of buildings, computer equipment, electrical
installation and equipment and vehicles, in whose case the life of the assets has been
assessed based on the nature of the asset, the estimated usage of the asset, the
operating conditions of the asset, past history of replacement, etc.
Depreciation for additions to/deductions from owned assets is calculated pro rata to the
remaining period of use. Depreciation charge for impaired assets is adjusted in future
periods in such a manner that the revised carrying amount of the asset is allocated over
its remaining useful life. All capital assets with individual value less than ` 5,000 are
depreciated fully in the year in which they are purchased.
Purchased software / licenses are amortised over the estimated useful life during which
the benefits are expected to accrue, while Goodwill if any is tested for impairment at
each Balance Sheet date. The method of amortisation and useful life are reviewed at
the end of each accounting year with the effect of any changes in the estimate being
accounted for on a prospective basis. Amortisation on impaired assets is provided by
adjusting the amortisation charge in the remaining periods so as to allocate the asset’s
revised carrying amount over its remaining useful life.
Estimated useful life considered by the Company are:
Asset Estimated Useful Life

Furniture and Fixtures 10 years
Computer Equipment 3 to 4 years
Office Equipment 5 years
Vehicles 4 years
Software Licenses 1 to 10 years
Buildings 25 years
Plant & Machinery 10 years
f) Investment property
Properties held to earn rentals and/or capital appreciation are classified as Investment
properties and are reported at cost, including transaction costs. Subsequent to initial
recognition its measured at cost less accumulated depreciation and accumulated
impairment losses, if any. When the use of an existing property changes from owner-
occupied to investment property, the property is reclassified as investment property at its
carrying amount on the date of reclassification.
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 de-recognition of property is recognised in the
Statement of Profit and Loss in the same period.
g) Impairment of assets
Upon an observed trigger or at the end of each accounting reporting period, the
Company reviews the carrying amounts of its PPE, investment property and intangible
asset to determine whether there is any indication that the asset have suffered an
impairment loss. If such indication exists, the PPE, investment property and intangible
assets are tested for impairment so as to determine the impairment loss, if any.
Impairment loss is recognised when the carrying amount of an asset exceeds its
recoverable amount. Recoverable amount is the higher of fair value less cost of
disposal and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current
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market assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
If recoverable amount of an asset is estimated to be less than its carrying amount, such
deficit is recognised immediately in the Statement of Profit and Loss as impairment loss
and the carrying amount of the asset is reduced to its recoverable amount.
When an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss is recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in the Statement of Profit and Loss.
h) De-recognition of property, plant and equipment and intangible asset
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. Any
gain or loss arising on the disposal or retirement of an item of PPE is determined as
the difference between the sales proceeds and the carrying amount of the asset and is
recognised in the Statement of Profit and Loss. An intangible asset is derecognised on
disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from de-recognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset, are recognised
in the Statement of Profit and Loss.
i) Right of Use Asset

Under Ind AS 116, the Company recognises right-of-use assets and lease liabilities for
certain type of leases.
The Company presents right-of-use and lease liability separately on the face of
Balance Sheet. The Company recognises a right-of-use asset and a lease liability at
the lease commencement date. The right-of-use asset is initially measured at cost and
subsequently at cost less any accumulated depreciation and accumulated impairment
loss, if any, and adjusted for certain re-measurements of the lease liability. When a right-
of-use asset meets the definition of investment property, it is presented in investment
property. The right-of-use asset is initially measured at cost and subsequently measured
at fair value, in accordance with the Company’s accounting policies.
xiii. Non-Current Assets held for sale:
Non-current assets are classified as held for sale if their carrying amount is intended to be
recovered principally through a sale (rather than through continuing use) when the asset is
available for immediate sale in its present condition subject only to terms that are usual and
customary for sale of such asset and the sale is highly probable and is expected to qualify for
recognition as a completed sale within one year from the date of classification.
Non-current assets classified as held for sale are measured at lower of their carrying amount
and fair value less costs to sell.
The Company has a policy to make impairment provision at one third of the value of the Asset
for each year upon completion of three years up to the end of five years based on the past
observed pattern of recoveries. Losses on initial classification as Held for sale and subsequent
gains & losses on remeasurement are recognised in Statement of Profit and loss. Once
classified as Held for sale, the assets are no longer amortised or depreciated.
xiv. Employee Benefits

Defined Contribution benefits include superannuation fund.
Defined Employee benefits include gratuity fund, provident fund compensated absences and
long service awards.
281
Defined contribution plans

The Company's contribution to superannuation fund is considered as defined contribution plan
and is charged as an expense in the Statement of Profit and Loss based on the amount of
contribution required to be made and when services are rendered by the employees.
Defined benefit plans

The Company makes Provident Fund contributions, a defined benefit plan for qualifying
employees. Under the Schemes, both employees and the Company make monthly
contributions at a specified percentage of the covered employees’ salary (currently 12% of
employees’ salary). The contributions, except that the employer’s contribution towards pension
fund is paid to the Regional Provident Fund office, as specified under the law, are made to
the provident fund set up as an irrevocable trust by the Company. The interest rate payable
to the members of the trust shall not be lower than the statutory rate of interest declared by
the Central Government under the Employees Provident Funds and Miscellaneous Provisions
Act, 1952 and shortfall on account of , if any, shall be made good by the Company. Hence
the Company is liable for annual contributions and any deficiency in interest cost compared to
interest computed based on the rate of interest declared by the Central Government. The total
liability in respect of the interest shortfall of the Fund is determined on the basis of an actuarial
valuation. The interest liability arising only to the extent of the aforesaid differential shortfalls is
a defined benefit plan. There is no such shortfall as at March 31, 2022.
For defined benefit plans in the form of gratuity, the cost of providing benefits is determined
using the Projected Unit Credit method, with actuarial valuations being carried out at each
Balance Sheet date. As per Ind AS 19, the service cost and the net interest cost are charged
to the Statement of Profit and Loss. Remeasurement of the net defined benefit liability, which
comprise actuarial gains and losses, the return on plan assets (excluding interest) and the
effect of the asset ceiling (if any, excluding interest), are recognised in Other Comprehensive
Income. Past service cost is recognised immediately to the extent that the benefits are already
vested. The retirement benefit obligation recognised in the Balance Sheet represents the
present value of the defined benefit obligation as adjusted for unrecognised past service cost,
as reduced by the fair value of scheme assets. Any asset resulting from this calculation is
limited to past service cost, plus the present value of available refunds and reductions in future
contributions to the schemes.
Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised during the year when the employees
render the service. These benefits include performance incentive and compensated absences
which are expected to occur within twelve months after the end of the reporting period in
which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render the services
that increase their entitlement of future compensated absences; and
(b) in case of non-accumulating compensated absences, when the absences occur.
Other long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of
the year in which the employee renders the related service are recognised as a liability at the
present value of the defined benefit obligation as at the balance sheet date less the fair value
of the plan assets out of which the obligations are expected to be settled. Long term service
awards are recognised as a liability at the present value of the defined benefit obligation as at
the balance sheet date.
The obligation is measured on the basis of actuarial valuation using Projected Unit Credit
282
method and remeasurements gains/ losses are recognised in the statement of profit and loss
in the period in which they arise.
Share based payment transaction

The stock options granted to employees pursuant to the Company’s Stock Options Schemes,
are measured at the fair value of the options at the grant date as per Black and Scholes
model. The fair value of the options is treated as discount and accounted as employee
compensation cost, with a corresponding increase in other equity, over the vesting period on a
straight-line basis. The amount recognised as expense in each year is arrived at based on the
number of grants expected to vest. If a grant lapses after the vesting period, the cumulative
discount recognised as expense, with a corresponding increase in other equity, in respect of
such grant is transferred to the General reserve within other equity.
xv. Foreign currency transactions

Transactions in currencies other than the Company’s functional currency are recorded on initial
recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign
currency monetary items are reported at the rates prevailing at the year end. Non-monetary
items that are measured in terms of historical cost in foreign currency are not retranslated.
Functional currency of the Company has been determined based on the primary economic
environment in which the Company operates considering the currency in which funds are
generated, spent and retained.
Exchange differences that arise on settlement of monetary items or on reporting of monetary
items at each Balance Sheet date at the closing spot rate are recognised in the Statement of
Profit and Loss in the period in which they arise.
xvi. Operating Segments
The Company’s operating segments consist of “Investment Activity”, “Private Equity Investment
Activity” and “Others”. These in the context of Ind AS 108 – Operating Segments reporting are
considered to constitute reportable segment. The Chief Operating Decision Maker (CODM) of
the Company is the Board of Directors. Operating segment disclosures are consistent with the
information reviewed by the CODM.
An operating segment is a component of the company that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the company’s other components, and for which discrete financial
information is available. Accordingly, the operating results of all operating segments of the
Company are reviewed regularly by the Board of Directors to make decisions about resources
to be allocated to the segments and assess their performance.
The “Investment Activity” segment includes corporate investments and treasury activities.
“Private Equity Investment Activity” includes management of Private Equity investments and
related support services activities.
“Others” segment primarily includes property management services and managerial and
marketing services.
Revenue and expense directly attributable to segments are reported under each operating
segment. Expenses not directly identifiable to each of the segments have been allocated to
each segment on the basis of associated revenues of each segment. All other expenses which
are not attributable or allocable to segments have been disclosed as un-allocable expenses.
Assets and liabilities that are directly attributable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as un-allocable.
xvii. Investments in Subsidiaries and Associates

The Company has elected to measure equity investments in Subsidiaries and Associate at
cost as per Ind AS 27 – Separate financial statements, accordingly measurement at fair value
283
through statement of profit and loss account and related disclosure under Ind AS 109 does not
apply.
xviii. Earnings per share

Basic earnings per share has been computed by dividing net income attributable to ordinary
equity holders by the weighted average number of shares outstanding during the year. Partly
paid up equity share is included as fully paid equivalent according to the fraction paid up.
Diluted earnings per share has been computed using the weighted average number of shares
and dilutive potential shares, except where the result would be anti-dilutive.
xix. Taxation
Income Tax
Income tax expense comprises current and deferred taxes. Income tax expense is recognized
in the Statement of Profit and Loss, other comprehensive income or directly in equity when
they relate to items that are recognized in the respective line items.
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to the tax payable or receivable in respect of previous years.
The amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to income taxes. It is measured using
tax rates (and tax law) enacted or substantively enacted by the reporting date.
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off
the recognised amounts and it is intended to realise the asset and settle the liability on a net
basis or simultaneously.
Deferred Tax
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary
differences between the carrying values of assets and liabilities and their respective tax bases,
and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax
assets are recognised to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences, unused tax losses, depreciation carry-
forwards and unused tax credits could be utilized.
The carrying amount of deferred tax assets are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to
apply in the period when the asset is realised or the liability is settled, based on tax rates and
tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.
xx. Goods and Services Input Tax Credit
Goods and Services Input tax credit is accounted for in the books in the period in which the
supply of goods or service received is accounted and when there is no uncertainty in availing/
utilising the credits.
xxi. Provisions, contingent liabilities and contingent assets

Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of past events, and it is probable that an outflow of resources embodying economic
284
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. When the effect of the time value of money is material, the Company
determines the level of provision by discounting the expected cash flows at a pre-tax rate
reflecting the current rates specific to the liability. The expense relating to any provision is
presented in the Statement of Profit and Loss net of any reimbursement.
Contingent assets/liabilities
A possible obligation that arises from past events and 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 Company or; present obligation that arises from past events
where it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; or the amount of the obligation cannot be measured with
sufficient reliability are disclosed as contingent liability and not provided for. Contingent assets
are disclosed where an inflow of economic benefits is probable. Contingent assets are not
recognised in the standalone financial statements.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet
date.
Where the unavoidable costs of meeting the obligations under the contract exceed the
economic benefits expected to be received under such contract, the present obligation under
the contract is recognised and measured as a provision.
xxii. Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as
follows:
a) estimated amount of contracts remaining to be executed on capital account and not
provided for;
b) uncalled liability on shares and other investments partly paid;
c) funding related commitment to subsidiaries / associate;
d) other non-cancellable commitments, if any, to the extent they are considered material
and relevant in the opinion of management.
e) other commitments related to sales/procurements made in the normal course of business
are not disclosed to avoid excessive details.
xxiii. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing
and financing activities. Cash flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non-
cash nature;
ii. non-cash items such as depreciation, impairment, deferred taxes, unrealised foreign
currency gains and losses, and undistributed profits of associates and joint ventures; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows
exclude items which are not available for general use as on the date of Balance Sheet.
xxiv. Dividend payable
Interim dividend declared to equity shareholders, if any, is recognised as liability in the period
in which the said dividend has been declared by the Board of Directors. Final dividend
declared, if any, is recognised in the period in which the said dividend has been approved by
the Shareholders.
Cumulative Redeemable Preference Shares (CRPS) is classified as a financial liability and
dividend accrued on such instrument is recorded as finance cost.
285
Notes forming part of Standalone financial statements

As at As at
CASH AND CASH EQUIVALENTS
March 31, 2022 March 31, 2021
(a) Balances with banks (in the nature of cash and cash 195 2,511
equivalents)
Total 195 2,511

As at As at
OTHER BALANCES WITH BANKS
March 31, 2022 March 31, 2021
(a) Earmarked balances with banks (unpaid dividend) 13 16
Total 13 16
NOTE “5(i)” (` in lakh)

As at As at
Trade Receivables
March 31, 2022 March 31, 2021
(a) Dues from related parties
(i) Receivables considered good - Unsecured 1,113 1,203
(ii) Receivables - credit impaired 192 192
1,305 1,395
Less: Impairment loss allowance
(i) Impairment loss allowance (4) (5)
(ii) Credit impaired (192) (192)
1,109 1,198
(b) Dues from others
(i) Receivables considered good - Unsecured 157 91
(ii) Receivables - credit impaired - -
157 91
(i) Impairment loss allowance (1) (0)*
(ii) Credit impaired - -
156 91
Total 1,265 1,289
* Amount less than ` 50,000
All Trade receivables are non-interest bearing.and are generally on terms of 6 months to 1 year
286
Trade Receivables ageing schedule (` in lakh)

Unbilled Not due Less 6 1-2 years 2-3 years More
Dues than 6 months- than 3
months 1 year years
Undisputed Trade Receivables - - 1,267 - - - 3 1,270
- considered good
Undisputed Trade Receivables - - - - - - - -
- which have significant
increase in cresit risk
Undisputed Trade Receivables - - - - - 82 110 192
- credit impaired
Disputed Trade Receivables - - - - - - - - -
considered good
which have significant increase
in cresit risk
credit impaired
Trade Receivables ageing schedule (` in lakh)

Unbilled Not due Less 6 1-2 years 2-3 years More
Dues than 6 months- than 3
months 1 year years
Undisputed Trade Receivables 1,291 3 1,294
- considered good
Undisputed Trade Receivables - - - - - - -
- which have significant
increase in cresit risk
Undisputed Trade Receivables - - - - 82 33 77 192
- credit impaired
Disputed Trade Receivables - - - - - - - -
considered good
which have significant increase
in cresit risk
credit impaired
Note : Ageing of the trade receivables is determined from the date of transaction till the reporting date.
287
NOTE “5(ii)” (` in lakh)

As at As at
Other Receivables
March 31, 2022 March 31, 2021
(a) Dues from related parties
(ii) Receivables - credit impaired - -
5 3
(i) Impairment loss allowance (0)* (0)*
(ii) Credit impaired - -
5 3
(b) Dues from others
(ii) Receivables - credit impaired 10 10
29 14
(i) Impairment loss allowance (0)* (0)*
(ii) Credit impaired (10) (10)
19 4
Total 24 7
As at As at
LOANS
March 31, 2022 March 31, 2021
LOANS AT AMORTIZED COST
(A)
(a) Bills purchased and bills discounted - -
(b) Loans repayable on demand (Refer footnote 1) 77,988 1,28,462
(c) Term loans 20,013 -
(d) Leasing and hire purchase - -
(e) Factoring - -
Total (A) - Gross 98,001 1,28,462
Less : Impairment loss allowance (392) (514)
Less : Revenue received in advance (99) -
Total (A) - Net 97,510 1,27,948
(B)
(a) Secured by tangible assets 20,013 -
(b) Secured by intangible assets - -
(c) Covered by Bank / Government Guarantees - -
(d) Unsecured 77,988 1,28,462
Total (B) - Gross 98,001 1,28,462
Total (B) - Net 97,510 1,27,948
(C)
(I) Loans in India
(a) Public Sector - -
(b) Others 98,001 1,28,462
(II) Loans outside India - -
Total (C) - Gross 98,001 1,28,462
Total (C) - Net 97,510 1,27,948
Total 97,510 1,27,948
Footnote 1: All Unsecured loans repayable on demand are given to subsidiary companies.
288
Following Loans have been granted that are repayable on demand:

Type of Borrower Amount of loan or Percentage to the
advance in the nature total Loans and
of loan outstanding Advances in the
nature of loans
Promoters - -
Directors - -
KMPs - -
Related parties 77,988 80%

Type of Borrower Amount of loan or Percentage to the
advance in the nature total Loans and
of loan outstanding Advances in the
nature of loans
Promoters - -
Directors - -
KMPs - -
Related parties 1,28,462 100%
NOTE “7”
Scrip-wise details of investments (` in lakh)
Face As at As at
INVESTMENTS value Per March 31, 2022 March 31, 2021
Unit ` No. of Units ` in lakh No. of Units ` in lakh
INVESTMENTS AT COST
Investment in Subsidiaries
Unquoted:
Investment in Equity Shares 8,95,013 8,40,056
Tata Capital Financial Services Limited 10 1,65,98,72,100 5,68,755 1,62,99,31,981 5,38,755
Tata Capital Housing Finance Limited 10 54,75,55,612 2,40,600 54,75,55,612 2,40,600
Tata Securities Limited 10 61,83,837 789 61,83,837 789
Tata Capital Pte Limited SGD 1 3,22,82,000 10,807 3,22,82,000 10,807
Tata Cleantech Capital Limited 10 36,97,24,940 74,062 31,23,52,590 49,105
Investment in Venture Capital Units 32,359 29,823
Tata Capital Growth Fund- Class A Units 1 2,50,00,00,000 5,433 2,50,00,00,000 5,791
Tata Capital Special Situations Fund- Class A 1,00,000 4,181 2,260 4,181 2,260
Units
Tata Capital Special Situations Fund - Class B 100 50 0* 50 0*
Units
Tata Capital Healthcare Fund I- Class A Units 1 1,00,00,00,000 2,377 1,00,00,00,000 2,377
Tata Capital Innovations Fund- Class A Units 1,000 7,50,000 5,058 7,50,000 5,818
Tata Capital Innovations Fund - Class B Units 1 10,000 0* 10,000 0*
Tata Capital Growth Fund II - Class A1 Units 1 3,60,67,70,000 14,619 3,60,67,70,000 12,184
Tata Capital Growth Fund II - Class B1 Units 1 1,25,00,000 51 1,25,00,000 42
Tata Capital Growth Fund II - Class B2 Units 1 1,00,00,000 41 1,00,00,000 34
Tata Capital Healthcare Fund II 1,000 14,00,000 2,520 14,00,000 1,317
289
NOTE “7”
Scrip-wise details of investments (Continued) (` in lakh)
Face As at As at
INVESTMENTS value Per March 31, 2022 March 31, 2021
Unit ` No. of Units ` in lakh No. of Units ` in lakh
Investment in Associates
Unquoted :
Investment in Equity shares 29,248 28,655
Tata Autocomp Systems Limited 10 4,83,07,333 18,528 4,83,07,333 18,528
Tata Play Limited (formerly Tata Sky Limited) 10 1,00,72,871 5,242 1,00,72,871 5,242
Roots Corporation Limited 10 - - 22,91,454 2,062
Tata Projects Limited 5 | 10 36,71,821 5,478 44,810 2,823
Total Cost of Investments (A) 9,56,620 8,98,534
Provision for diminution in value of (7,069) (6,842)
investments (B)
Carrying value of Investments in Subsidiaries 9,49,551 8,91,692
and Associates measured at cost (C) = (A + B)
INVESTMENTS AT FAIR VALUE THROUGH
PROFIT & LOSS
Investment in Others
Quoted:
Investment in Equity shares 266 156
Tata Steel Limited (Fully paid) 10 16,740 219 16,740 136
The Indian Hotels Company Limited 1 19,600 47 17,640 20
Investments in Mutual Funds 47,815 301
Tata Liquid Fund Regular Plan - Growth 1,000 9,342 311 9,342 301
ABSL Money Manager Fund Gr-Direct 1,000 33,45,316 9,999 - -
Tata Money Market Fund Direct Plan - Growth 1,000 4,70,680 18,005 - -
Nippon India Money Market Fund - Direct 1,000 2,83,520 9,500 - -
Growth
Kotak Money Market Fund - Direct Plan - Growth 1,000 2,76,175 10,000 - -
Investments in Category III Alternative 2,806 2,411
Investment Fund (“AIF”)
Tata Absolute Return Fund 1,000 1,00,000 1,178 1,00,000 1,079
Tata Equity Plus Absolute Return Fund 1,000 1,00,000 1,628 1,00,000 1,332
Total Investments at Fair Value through 50,886 2,868
Profit & Loss (D)
INVESTMENTS AT FAIR VALUE THROUGH
OTHER COMPREHENSIVE INCOME
Investment in Subsidiaries
Unquoted:
Investment in Non-Convertible Debentures 13,560 13,703
8.90% Perpetual Debentures of Tata Capital 10,00,000 1,250 13,560 1,250 13,703
Financial Services Limited
Total Investments at Fair Value through 13,560 13,703
Other Comprehensive Income (E)
Total Investments (C + D + E) 10,13,997 9,08,263
Particulars ` In lakhs ` In lakhs
(i) Investments in India 10,03,190 8,97,456
(ii) Investments outside in India (Refer Footnote 1) 10,807 10,807
Total Investments 10,13,997 9,08,263
Footnote 1 : Investment outside India is in Equity shares of wholly owned subsidiary of Tata Capital Limited
290

As at As at
OTHER FINANCIAL ASSETS
March 31, 2022 March 31, 2021
(a) Security deposit 59 74
(b) Accrued Income - others 715 0*
Total 774 74
NOTE “9”
The major components of deferred tax assets and liabilities as at March 31, 2022 are as follows: (` in lakh)
DEFERRED TAX (LIABILITY) / ASSET (NET) Opening Recognised Recognised Closing
Balance / reversed / reclassified Balance
through from other
profit and comprehensive
loss income
(a) Impairment loss allowance - stage I & II 145 (31) - 114
(b) Employee benefits 61 (2) - 59
(c) Timing difference on debenture issue expenses (7) (21) - (28)
(d) Provisions for non-performing assets 99 - - 99
(e) Fair value of investments (391) (106) 38 (460)
(f) Depreciation on property, plant and equipment 134 1 - 135
(g) Others 1 0* - 1
Deferred Tax Asset (Net) 42 (159) 38 (80)
The major components of deferred tax assets and liabilities as at March 31, 2021 are as follows: (` in lakh)
DEFERRED TAX (LIABILITY) / ASSET (NET) Opening Recognised Recognised Closing
Balance / reversed / reclassified Balance
through from other
profit and comprehensive
loss income
(a) Impairment loss allowance - stage I & II 125 20 - 145
(b) Employee benefits 66 (5) - 61
(c) Timing difference on debenture issue expenses 19 (26) - (7)
(d) Provisions for non-performing assets 97 2 - 99
(e) Fair value of investments (186) (99) (107) (391)
(f) Depreciation on property, plant and equipment 124 10 - 134
(g) Others 1 (0)* - 1
Deferred Tax Asset (Net) 246 (98) (107) 42
291
Net deferred tax assets and liabilities are as follows: (` in lakh)

As at As at
March 31, 2022 March 31, 2021
(a) Impairment loss allowance - stage I & II 114 145
(b) Employee benefits 59 61
(c) Timing difference on debenture issue expenses (28) (7)
(d) Provisions for non-performing assets 99 99
(e) Fair value of investments (460) (391)
(f) Depreciation on property, plant and equipment 135 134
(g) Others 1 1
Deferred Tax (Liability) / Asset (Net) (80) 42

PROPERTY, PLANT AND Gross Block Accumulated depreciation and amortisation Net
EQUIPMENT Carrying
Value
Opening Additions/ Deletions/ Closing Opening Depreciation/ Deletions/ Closing As at
balance Adjustments Adjustments balance balance Amortisation Adjustments balance March
as at April as at as at for the as at 31, 2022
1, 2021 March 31, April 1, year March 31,
2022 2021 2022
TANGIBLE ASSETS
Buildings 4,323 - - 4,323 844 211 - 1,055 3,268
4,323 - - 4,323 633 211 - 844 3,479
Plant and Equipment 90 - - 90 63 16 - 79 11
90 - - 90 47 16 - 63 27
Furniture and Fixtures 470 - (1) 469 317 79 (1) 395 74
470 - (0)* 470 238 79 (0)* 317 153
Vehicles 225 121 (128) 218 152 50 (121) 81 137
231 20 (26) 225 119 58 (25) 152 72
Office Equipment 34 1 - 35 33 1 - 34 1
37 - (3) 34 34 1 (2) 33 1
Computer Equipment 49 10 - 59 36 10 - 46 13
50 0* (1) 49 26 11 (1) 36 13
TANGIBLE ASSETS - TOTAL 5,191 132 (129) 5,194 1,446 367 (122) 1,690 3,504
5,201 20 (30) 5,191 1,097 376 (28) 1,446 3,745
INVESTMENT PROPERTY
Buildings given on operating 6,495 - - 6,495 1,248 312 - 1,560 4,935
lease
6,495 - - 6,495 936 312 - 1,248 5,247
INTANGIBLE ASSETS
(other than internally generated)
Software 98 0* - 98 94 2 - 96 2
93 5 - 98 85 9 - 94 4
INTANGIBLE ASSETS - TOTAL 98 0* - 98 94 2 - 96 2
93 5 - 98 85 9 - 94 4
RIGHT OF USE ASSETS
Right of Use Asset 67 96 (123) 40 58 30 (85) 3 37
67 - - 67 29 29 - 58 9
TOTAL 11,851 228 (252) 11,827 2,846 711 (207) 3,349 8,478
11,856 25 (30) 11,851 2,147 727 (28) 2,846 9,005
Figures in Italics relate to previous year
292
Footnotes:
1. Amount recognised in Statement of Profit and Loss for Investment Property:
Notes: (` in lakh)
March 31, 2022 March 31, 2021
Rental income from Investment Property 1,901 1,901
Direct Operating expenses arising from Investment Property 514 545
that generated rental income
Direct Operating expenses arising from Investment Property - -
that did not generate rental income
2. Fair value of investment property as on March 31, 2022 : ` 14,335 lakh (Carrying value ` 4,935
lakh). Pursuant to the Ind AS transition, the Company has carried out valuation of Investment
property as at March 31, 2022. The fair value of the property is assessed based on the market rate
for a similar property in the locality.
3. The Company confirms that, the title deeds of immovable properties are held in the name of the
company.
4. None of the class of fixed asssets are revalued during the year
As at As at
OTHER NON-FINANCIAL ASSETS
March 31, 2022 March 31, 2021
(a) Capital advances 2 0*
(b) Advances other than capital advances 84 63
(c) Prepaid expenses 340 397
(d) Rental income accrued 131 262
(e) Balances with government authorities 436 17
(f) Gratuity asset (net) 780 666
Total 1,773 1,405

As at As at
TRADE PAYABLES
March 31, 2022 March 31, 2021
Micro enterprises and small enterprises
(a) Payable to dealers/vendors/customer 9 2
9 2
Other than micro enterprises and small enterprises
(a) Accrued expenses 2,242 2,005
(b) Payable to subsidiary 0* 9
(c) Payable to dealers/vendors/customer 55 20
2,297 2,034
Total 2,306 2,036
Note- The information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent such parties have been identified on the basis
of information available with the Company. The amount of principal and interest outstanding during the
year is given below :
293
NOTE “12(i)”
TOTAL OUTSTANDING DUES OF MICRO ENTERPRISES AND SMALL ENTERPRISES
(` in lakh)
As at As at
Particular
March 31, 2022 March 31, 2021
(a) the principal amount and the interest due thereon (to be 9 2
shown separately) remaining unpaid to any supplier as at the
end of accounting period; **
(b) the amount of interest paid by the buyer under MSMED Act, - -
2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting
period;
(c) the amount of interest due and payable for the period (where - -
the principal has been paid but interest under the MSMED
Act, 2006 not paid);
(d) The amount of interest accrued and remaining unpaid at the - -
end of the accounting period; and
(e) The amount of further interest due and payable even in the - -
succeeding period, until such date when the interest dues as
above are actually paid to the small enterprise, for the purpose
of disallowance as a deductible expenditure under section 23.
Total 9 2
** Amount of Interest due is Nil as at March 31, 2022 and March 31, 2021
Trade payables ageing schedule (` in lakh)
Unbilled Not Due Less 1-2 2-3 More
Dues than 1 years years than 3
year years
(i) MSME - - 9 - - - 9
(ii) Others 2,243 - 54 - - - 2,297
(iii) Disputed dues-MSME - - - - - - -
(iv) Disputed dues-Others - - - - - - -
Total 2,306
(` in lakh)
Unbilled Not Due Less 1-2 2-3 More
Dues than 1 years years than 3
year years
(i) MSME - - 2 - - - 2
(ii) Others 2,014 - 20 - - - 2,034
(iii) Disputed dues-MSME - - - - - - -
(iv) Disputed dues-Others - - - - - - -
Total 2,036
294

As at As at
DEBT SECURITIES
March 31, 2022 March 31, 2021
At Amortised cost
UNSECURED
(i) Non-Convertible Debentures
(i) Privately placed 2,93,289 2,29,107
(ii) Public issue - -
(ii) Commercial Paper [Net of unamortised discount of ` 242 4,757 -
lakh as at March 31, 2022}
Total (A) 2,98,046 2,29,107
Debt Securities in India 2,98,046 2,29,107
Debt Securities outside India – –
Total (B) 2,98,046 2,29,107
Discount on above outstanding Commercial papers as at March 31, 2022 is 5.25% and maturity is less
than 12 months from the end of financial year.
No borrowings in the form of Debt securities have been made from related parties.
Terms of repayment, nature of security and rate of interest in case of Unsecured Privately Placed
Non-Convertible Debentures :
Name of Security Issue Date Maturity date No of March March
NCDs 31, 2022 31, 2021
TCL Unsecured NCD A FY 2019-20 August 29, 2019 August 27, 2021 750 - 7,500
TCL Unsecured NCD B FY 2019-20 Option I December 3, 2019 December 3, 2021 3,000 - 30,000
TCL Unsecured NCD B FY 2019-20 Option II February 20, 2020 June 3, 2022 250 2,500 2,500
Reissuance
TCL Unsecured NCD B FY 2019-20 Option II December 3, 2019 June 3, 2022 3,750 37,500 37,500
TCL Unsecured NCD D FY 2019-20 February 20, 2020 December 21, 2022 3,000 30,000 30,000
TCL Unsecured NCD C FY 2019-20 Option II February 7, 2020 March 13, 2023 1,250 12,500 12,500
TCL Unsecured NCD C FY 2019-20 Option I February 7, 2020 June 28, 2023 1,250 12,500 12,500
TCL Unsecured NCD A FY 2020-21 Option II August 4, 2020 August 4, 2023 3,000 30,000 30,000
TCL Unsecured NCD B FY 2020-21 Option I February 25, 2021 December 28, 2023 3,000 30,000 30,000
TCL Unsecured NCD A FY 2021-22 January 18, 2022 February 16, 2024 4,000 40,000 -
TCL Unsecured NCD B FY 2020-21 Option II February 25, 2021 April 30, 2024 1,000 10,000 10,000
TCL Unsecured NCD B FY 2020-21 Option II February 22, 2022 April 30, 2024 3,000 30,000 -
Reissuance
TCL Unsecured NCD B FY 2021-22 Option I February 22, 2022 March 28, 2025 3,000 30,000 -
TCL Unsecured NCD A FY 2020-21 Option I August 4, 2020 August 4, 2025 2,050 20,500 20,500
Less: Unamortised Borrowing Cost (88) (137)
Add: Unamortised Premium 156 33
Add: Interest Accrued but not due on borrowings 7,721 6,211
Total 2,93,289 2,29,107
Coupon rate of above outstanding unsecured NCD’s as at March 31, 2022 varies from 6.49% to 9.22%
(as at March 31, 2021 : 6.70% to 9.22%)
295

As at As at
SUBORDINATED LIABILITIES
March 31, 2022 March 31, 2021
At Amortised cost
UNSECURED
(a) Preference Shares other than those that qualify as equity
(i) umulative Redeemable Preference Shares
C 1,10,983 1,15,740
(Refer Footnote 1) [Face Value ` 1,10,992 lakh (As at
March 31, 2021 ` 1,15,980 lakh)]
Total (A) 1,10,983 1,15,740
Subordinated Liabilities in India 1,10,983 1,15,740
Subordinated Liabilities outside India – –
Total (B) 1,10,983 1,15,740
Footnote 1: Of the above Subordinated Liabilities, Preference shares amounting to face value of ` 5,150
lakh (March 31, 2021 : ` 5,233 lakh) are held by related parties.
No default has been made in repayment of any Debt securities, Subordinated liabilities and interest
thereon for the year ended March 31, 2022 and March 31, 2021.
Particulars of Cumulative Redeemable Preference Shares : (` in lakh)

Particulars Tranche No of Allotment Date Redemption Redemption Date / March March
shares Date/ Actual Early Redemption 31, 2022 31, 2021
Redemption Date Date
7.50% Cumulative T 12,76,000 March 10, 2017 March 9, 2024 March 9, 2024 12,760 12,757
Redeemable Preference U 6,04,500 July 7, 2017 July 6, 2024 July 6, 2024 6,045 6,036
Shares of ` 1,000 each
U 45,500 July 7, 2017 August 23, 2021 August 23, 2021 - 454
V 7,36,000 July 12, 2017 July 11, 2024 July 11, 2024 7,360 7,350
V 14,000 July 12, 2017 August 23, 2021 August 23, 2021 - 140
W 6,69,500 July 26, 2017 July 25, 2024 July 25, 2024 6,695 6,685
W 80,500 July 26, 2017 August 23, 2021 August 23, 2021 - 804
7.33% Cumulative X 7,50,000 July 28, 2017 July 27, 2024 July 27, 2024 7,500 7,489
Redeemable Preference Y 6,59,500 August 4, 2017 August 3, 2024 August 3, 2024 6,666 6,585
Y 88,000 August 4, 2017 August 23, 2021 August 23, 2021 - 879
7.15% Cumulative Z 6,45,500 September 15, 2017 September 14, 2024 September 14, 2024 6,455 6,439
Redeemable Preference Z 1,04,500 September 15, 2017 November 30, 2021 November 30, 2021 - 1,042
7.10% Cumulative AA 5,83,700 September 29, 2017 September 28, 2024 September 28, 2024 5,837 5,822
Redeemable Preference AA 1,66,300 September 29, 2017 November 30, 2021 November 30, 2021 - 1,659
AB 4,00,000 April 20, 2018 April 19, 2025 September 30, 2022 3,996 3,983
AC 4,00,000 May 10, 2018 May 9, 2025 September 30, 2022 3,996 3,983
AD 3,34,500 June 15, 2018 June 14, 2025 September 30, 2022 3,341 3,330
7.75% Cumulative AE 4,00,000 March 13, 2019 March 12, 2026 June 30, 2023 3,985 3,977
Redeemable Preference
Shares of Rs. 1,000 each
296
Particulars of Cumulative Redeemable Preference Shares : (` in lakh)

Particulars Tranche No of Allotment Date Redemption Redemption Date / March March
shares Date/ Actual Early Redemption 31, 2022 31, 2021
Redemption Date Date
7.50% Cumulative AF 4,00,000 June 12, 2019 June 11, 2026 September 30, 2023 3,992 3,993
Redeemable Preference AG 4,00,000 June 28, 2019 June 27, 2026 October 31, 2023 3,991 3,992
AH 3,90,000 August 7, 2019 August 6, 2026 November 30, 2023 3,896 3,893
AI 4,00,000 August 28, 2019 August 27, 2026 November 30, 2023 3,998 3,996
AJ 4,00,000 August 30, 2019 August 29, 2026 December 31, 2023 3,998 3,996
AK 4,00,000 September 4, 2019 September 3, 2026 January 31, 2024 3,992 3,988
AL 4,00,000 September 9, 2019 September 8, 2026 February 29, 2024 3,992 3,988
AM 4,50,000 September 18, 2019 September 17, 2026 March 31, 2024 4,496 4,494
AN 4,00,000 September 24, 2019 September 23, 2026 March 31, 2024 3,991 3,987
Total 1,10,983 1,15,740
Notes: Early Date of Redemption refers to the date on or before which the CRPS shall be redeemed,
as per the terms of offer, in the event of exercise of Call / Put Option by Option Exercise Date by the
Company or CRPS holder(s), as the case may be, to seek early redemption.
As at As at
OTHER FINANCIAL LIABILITIES
March 31, 2022 March 31, 2021
(a) Unpaid dividends 13 16
(b) Security deposit 5,933 5,478
(c) Accrued employee benefit expenses 5,017 3,758
Total 10,963 9,253
As required under Section 125 of the Companies Act 2013, the Company has transferred ` Nil (Previous
Year ` Nil) to the Investor Education and Protection Fund (IEPF) during the year.

As at As at
PROVISIONS
March 31, 2022 March 31, 2021
(a) Provision for Retirement benefits and compensated absences 382 381
(b) Impairment provision against stage I and Stage II assets 54 55
Total 436 435

As at As at
OTHER NON-FINANCIAL LIABILITIES
March 31, 2022 March 31, 2021
(a) Revenue received in advance 203 609
(b) Statutory dues 1,397 1,317
(c) Others 3 3
Total 1,603 1,929
297

Face As at As at
Value March 31, 2022 March 31, 2021
EQUITY SHARE CAPITAL
Per Unit
No. of shares ` in lakh No. of shares ` in lakh
`
AUTHORISED
a) Equity shares 10 4,75,00,00,000 4,75,000 4,75,00,00,000 4,75,000
b) Preference shares (Refer 1000 3,25,00,000 3,25,000 3,25,00,000 3,25,000
Footnote 1)
8,00,000 8,00,000
ISSUED, SUBSCRIBED AND PAID UP
a) Equity shares 10 3,51,61,67,744 3,51,617 3,51,61,67,744 3,51,617
Total 3,51,617 3,51,617
Footnote 1 : The details of Preference Shares Issued, Subscribed and Paid-up are as below:
Particulars Face As at As at
Value March 31, 2022 March 31, 2021
Per Unit
No. of shares ` in lakh No. of shares ` in lakh
`
ISSUED
Cumulative Redeemable Preference 1,000 1,10,99,200 1,10,992 1,15,98,000 1,15,980
Shares
SUBSCRIBED AND PAID UP
Cumulative Redeemable Preference 1,000 1,10,99,200 1,10,992 1,15,98,000 1,15,980
Shares
As per Ind AS, Cumulative Redeemable Preference Shares are classified as financial liabilities held at
amortized cost and form part of “Subordinated Liabilities” (Refer note 14)
NOTE “18 (a)”

Details of shareholdering of Promoters are given below:

No. of % % change No. of % % change
shares holding during the year shares holding during the year
Tata Sons Private Limited 3,32,45,83,520 94.6% 0.0% 3,32,45,83,520 94.6% 0.0%
NOTE “18 (b)”

Details of shareholders holding more than 5 percent shares in the Company are given below:
No. of ` in lakh % holding No. of ` in lakh % holding
shares shares
Tata Sons Private Limited 3,32,45,83,520 3,32,458 94.6% 3,32,45,83,520 3,32,458 94.6%
298
NOTE “18 (c)”

Reconciliation of number of equity shares outstanding
Particulars No. of shares ` in lakhs
Equity Shares
Opening balance as on April 01, 2020 3,51,61,67,744 3,51,617
Issued during the year - -
Closing Balance as on March 31, 2021 3,51,61,67,744 3,51,617
Issued during the year - -
NOTE “18 (d)”

There are no shares in the preceding 5 years allotted as fully paid up without payment being received in
cash / bonus shares / bought back.
NOTE “18 (e)”
There are no shares reserved for issue under options and contracts/commitments for the sale of shares
or disinvestment.
NOTE “18 (f)”
The Company has one class of equity shares having a par value of ` 10 per share. Each shareholder is
eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to
the approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
The Company has issued Cumulative Redeemable Preference Shares (“CRPS”) having a par value of
Rs.1000 per share. The claims of CRPS holders shall be subordinated to the claims of all secured
and unsecured creditors but senior to the claims of the equity shareholders and shall rank pari-passu
amongst all preference shareholders of the Company.
In pursuance of Section 43 of the Act, the CRPS shall carry a preferential right with respect to (a)
payment of dividend calculated at a fixed rate, which may either be free of or subject to income tax; and
(b) repayment, in the case of a winding up or repayment of capital, of the amount of the share capital
paid-up or deemed to have been paid-up, whether or not, there is a preferential right to the payment of
any fixed premium.
Company has a Call option to redeem its CRPS by early redemption date. CRPS holder has a Put option
to seek redemption of CRPS by early redemption date.
299
NOTE “18 (g)”

Investment by Tata Sons Private Limited (the Holding Company) and its Subsidiaries/Associates/JVs
Name of company Particulars of issue No. of equity ` in Lakh
shares
Opening Balance as on April 01, 2020 3,32,45,83,520 3,32,458
Tata Sons Private Add: Issued - -
Limited Closing Balance as on March 31, 2021 3,32,45,83,520 3,32,458
(Holding Company) Add: Issued - -
Opening Balance as on April 01, 2020 7,71,96,591 7,720
Tata Investment Add: Issued - -
Corporation Limited
Closing Balance as on March 31, 2021 7,71,96,591 7,720
(Subsidiary of Tata
Sons Private Limited) Add: Issued - -
Closing Balance as on March 31, 2022 7,71,96,591 7,720
Opening Balance as on April 01, 2020 22,72,346 227
Tata Industries Limited Add: Issued - -
(Joint Venture of Tata Closing Balance as on March 31, 2021 22,72,346 227
Closing Balance as on March 31, 2022 22,72,346 227
Tata International Add: Issued - -
Limited
(Subsidiary of Tata
Tata Motors Limited Add: Issued - -
(Associate of Tata Sons Closing Balance as on March 31, 2021 43,26,651 433
Private Limited) Add: Issued - -
Tata Chemicals Limited Add: Issued - -
(Associate of Tata Sons Closing Balance as on March 31, 2021 32,30,859 323
Private Limited) Add: Issued - -
Tata Consumer Opening Balance as on April 01, 2020 6,13,598 61
Products Limited Add: Issued - -
(formerly Tata Global
Beverages Limited)
(Associate of Tata Sons Add: Issued - -
Private Limited) Closing Balance as on March 31, 2022 6,13,598 61
Opening Balance as on April 01, 2020 3,41,30,14,157 3,41,301
Add: Issued - -
Total Closing Balance as on March 31, 2021 3,41,30,14,157 3,41,301
Add: Issued - -
300

As at As at
OTHER EQUITY
March 31, 2022 March 31, 2021
(a)Capital Redemption Reserve 575 575
(b)Securities Premium 2,95,866 2,95,866
(c)Special Reserve /Statutory Reserve 27,369 25,670
(d)ESOP Reserve 1,756 1,047
(e)General Reserve 288 288
(f)Other Comprehensive Income
(i) Debt instruments at fair value through Other 457 563
Comprehensive Income
(ii) Remeasurement of defined benefit (liability)/asset 81 74
(g) Capital Reserve 93 93
(h) Surplus in Statement of Profit and Loss 23,696 17,084
Total 3,50,181 3,41,260
NOTE “19 (a)”
Transfer to Special Reserve

As prescribed by section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to
transfer 20% of its net profit every year, as disclosed in the Statement of Profit & Loss before any
dividend is declared, to Special Reserve. Consequently, the Company has transferred ` 1,699 lakh to
Special Reserve for the year ended March 31, 2022 (For the year ended March 31, 2021 ` 933 lakh).
NOTE “19 (b)”
Nature & Purpose of Reserves

As part of a qualitative disclosure, Company is required to present disclosures as required by Para 79 of
Ind AS-1 i.e. nature & purpose of each reserve:
Sr No. Particulars Nature & Purpose of Reserves

(a) Capital Redemption Reserve This reserve has been created and held in
books as per requirement of the Companies Act.
(b) Securities Premium Account Premium received upon issuance of equity
shares.
(c) Special Reserve Account/Statutory Reserve As prescribed by Section 45 IC of Reserve
Bank of India Act, 1934. No appropriation of
any sum from the reserve fund shall be made
by the Company except for the purpose as
may be specified by RBI from time to time.
(d) ESOP Reserve Created upon grant of options to employees.
(e) General reserve Created upon employees stock options that
expired unexercised or upon forfeiture of
options granted.
(f) Other Comprehensive income Created on account of items measured through
other comprehensive income.
(g) Capital Reserve Reserve created on accounting of merger of
subsidiaries
(h) Surplus in Statement of Profit and Loss Created out of accretion of profits.
301
NOTE “20”
PROVISIONS AND CONTINGENT LIABILITIES
i. Movement in Provision against Stage I and Stage II assets during the period is as under:
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Opening Balance 574 494
Additions during the period - 79
Utilised during the period (122) -
Closing Balance 451 574
ii. Claims not acknowledged by the Company relating to cases contested by the Company and
which are not likely to be devolved on the Company relating to the following areas:
(` in lakh)
As at As at
Particulars
March 31, 2022 March 31, 2021
Income Tax (Matters decided in the Company's favour by 1,526 1,526
Appellate authorities and for which the Department is in
further appeal)
Income Tax (Matters for which liability is disputed by the 4,564 9,587
Company)
Value Added Tax (Pending before Appellate Authorities) 276 276
Total 6,366 11,389
As at March 31, 2022, claims against the Company not acknowledged as debts in respect of
income tax matters amounted to Rs. 6,090 lakhs. These claims against the Company are arising
on account of multiple issues of disallowances on completion of assessment proceedings under the
Income-tax Act, 1961, such as, disallowance u/s 14A of the Income-tax Act, 1961 for expenditure
incurred in relation to exempt income and other disallowances. These matters are pending before
various appellate authorities and the Company expects that its position will likely be upheld on
ultimate resolution, in view of favourable Appellate Tribunal Orders for earlier years, recent decision
of the Supreme Court and jurisdictional High Court in respect of 14A disallowance. Accordingly,
there will not be a material adverse effect on the Company’s financial position and therefore, the
Company has not recognized these as uncertain tax positions in its books.
NOTE “21”
COMMITMENTS :
i. The Company has sponsored Private Equity Funds in India, viz. Tata Capital Growth Fund I, Tata
Capital Growth Fund II, Tata Capital Healthcare Fund I, Tata Capital Healthcare Fund II, Tata
Capital Innovations Fund and Tata Capital Special Situations Fund and also acts as an Investment
Manager to these Funds. As on March 31, 2022, the Company has aggregate commitments of
` 36,671 lakh (as at March 31, 2021: ` 40,324 lakh) towards investments in these Funds.
ii. Commitment to co-invest with Omega TC Holdings Pte. Ltd USD 14.90 Million (` 11,250 lakh) (as
at March 31, 2021 : USD 15.06 Million (` 11,026 lakh)
iii. Guarantees issued to National Housing Bank on behalf of Tata Capital Housing Finance Limited
` 120,000 lakh (As at March 31, 2021 : ` 120,000 lakh) against which the amount liable by Tata
Capital Housing Finance Limited is ` 18,156 lakh as at March 31, 2022 (As at March 31, 2021
` 26,237 lakh). Pursuant to the terms of the Guarantee, the Company’s liability on invocation is
capped at the outstanding amount.
302

For the For the
INTEREST INCOME year ended year ended
March 31, 2022 March 31, 2021
(a) On Financial Assets measured at fair value through OCI
(i) Interest on Perpetual Debt 1,113 1,113
(b) On Financial Assets measured at amortized cost
(i) Interest on Inter Corporate Deposits 10,056 8,984
(ii) Interest on loans 3,043 -
(iii) Other Interest income 1 2
Total 14,213 10,098

For the For the
FEES AND COMMISION INCOME year ended year ended
March 31, 2022 March 31, 2021
(a) Income from advisory and management services 5,214 4,458
Total 5,214 4,458

For the For the
NET GAIN ON FAIR VALUE CHANGES year ended year ended
March 31, 2022 March 31, 2021
(a) Net gain on investments at fair value through profit or
loss
(i) On trading Portfolio
Investment - -
Derivatives - -
Others - -
(ii) Others
- On equity securities 107 95
- On other financial securities 411 382
- On derivative contracts - -
(iii) Total net gain/(loss) on fair value changes 518 477
(b) Fair Value Changes :
Realised loss - -
Unrealised gain 518 477
Total Net gain/(loss) on fair value changes 518 477
Total 518 477

For the For the
OTHER INCOME year ended year ended
March 31, 2022 March 31, 2021
(a) Income from managerial services 3,649 2,145
(b) Net gain on derecognition of property, plant and equipment 1 -
(c) Miscellaneous Income 1,082 55
Total 4,732 2,200
303
NOTE “26”
Disclosure as per Ind AS 115
(a) Contracts with customers
(` in lakh)
For the For the
March 31, 2022 March 31, 2021
i. Type of service
- Income from Advisory Services (Refer Footnote 1) 1,524 1,712
- Income from Managerial Services (Refer Footnote 2) 7,339 4,891
ii. Primary geographical market:
- Outside India 1,524 1,712
- India 7,339 4,891
iii. Timing of revenue recognition
- at a point in time of rendering service 5,173 3,857
- over the period of time upon rendering service 3,690 2,746
(b) The following table provides information about receivables and contract liabilities from
contracts with customers.
(` in lakh)
For the For the
March 31, 2022 March 31, 2021
Receivables 899 1,072
Contract Liabilities which are included in other liabilities - -
(Refer Footnote 3)
899 1,072
(c) Reconciliation between revenue as per IndAS 108 Segment Reporting and revenue as per
IndAS 115 Revenue from contract with customers
(` in lakh)
For the For the
March 31, 2022 March 31, 2021
Revenue reported as per IndAS 108 Segment Reporting 51,189 45,217
Less:
Revenue reported as per IndAS 109 financial Instruments:
Interest income 14,213 10,098
Net gain on fair value changes 518 477
Revenue reported as per IndAS 27 Separate Financial
Statements:
Dividend income 20,717 20,035
Profit on sale of investment 2,971 6,048
Revenue reported as per IndAS 40 Investment Property:
Rental income 1,901 1,901
Revenue reported as per IndAS 28-Investments in Associates
and Joint Ventures
Net gain on de-recognition of associate 923 -
Other income 1,083 55
Revenue reported as per IndAS 115 Revenue from 8,863 6,603
contract with customers
304
Footnotes:
1. Income from Advisory fees are charged to offshore investment manager for providing non-exclusive
non-binding support services for transactions by private equity funds.
2. Income from Managerial Services include :
- Management fees charged to subsidiaries for providing managerial and marketing services at
cost plus mark-up as and when the underlying costs are incurred.
- Private Equity Asset Management fees charged for assets under management and recognised
as contracted under investment management agreement with each Private Equity Fund.
3. The contract liabilities include management fees received in advance from the private equity funds.
As per the management fee agreement between the Company (in capacity as Investment Manager)
and private equity funds, the Company is liable to receive management fee bi-annually in advance.
Income from managerial services is recognised on a time proportion basis over the period for which
it is received.
5. As on March 31, 2022 and March 31, 2021, the Company doesn’t have any unsatisfied/partially
satisfied performance obligation in respect of revenue recognised for the year.

For the For the
FINANCE COST year ended year ended
March 31, 2022 March 31, 2021
(a) On Financial liabilities measured at Amortised Cost
(i) Interest expense on security deposit 455 420
(ii) Interest on debt securities 17,483 14,159
(iii) Interest on subordinated liabilities 8,646 10,050
(iv) Interest on right to use liabilities 3 2
(v) Other interest expenses (discounting charges on Commercial 2,383 882
Papers)
Total 28,970 25,513
Footnote :
During the year ended March 31, 2022, the Company has declared and paid, an interim dividend for the
year ending March 31, 2022 on Cumulative Redeemable Preference Shares aggregating to ` 196 lakh
(For the year ending March 31, 2021 ` 1,134 lakh) and final dividend for the year ending March 31,
2022 aggregating to ` 8,219 lakh (For the year ending March 31, 2021 ` 8,581 lakh).

IMPAIRMENT OF INVESTMENTS AT COST AND FINANCIAL For the year For the year
INSTRUMENTS ended ended
March 31, 2022 March 31, 2021
On Financial Instruments measured at amortized cost
(i) Investments 852 1,809
(ii) Impairment provision against Stage I and Stage II assets (122) 79
(iii) Impairment provision on trade receivables - 10
Total 730 1,898
305

For the For the
EMPLOYEE BENEFIT EXPENSES year ended year ended
March 31, 2022 March 31, 2021
(a) Salaries and wages 7,708 8,325
(b) Contribution to provident and other funds 244 226
(c) Share based payments to employees 709 499
(d) Staff welfare expenses 13 35
(e) Post employment defined benefit plans 68 100
Total 8,742 9,184

For the For the
OTHER EXPENSES year ended year ended
March 31, 2022 March 31, 2021
(a) Advertising and publicity 116 62
(b) Director's fees, allowances and expenses 151 137
(c) Insurance 76 45
(d) IT costs 347 299
(e) Legal and professional charges 481 651
(f) Rent, taxes and energy costs 258 161
(g) Repairs and maintenance 2 4
(h) Printing and Stationery 4 1
(i) Travelling and conveyance 71 26
(j) Expenditure towards CSR (Refer Note 30 (c)) 99 106
(k) Other expenditure 137 100
Total 1,742 1,592
Included in Other Expenses are the below:

NOTE “30(a)” (` in lakh)
For the For the
Payments to auditors included in Other
expenditure (excluding GST)
March 31, 2022 March 31, 2021
(a) For statutory and interim audit 37 20
(b) For tax audit 6 2
(c) For company law matters - -
(d) For other services ** 6 6
(e) For reimbursement of expenses - 1
Total 49* 29
* Includes Rs 7 lakh paid to the erstwhile auditors
** Other Services include fees for certifications
306
NOTE “30(b)” (` in lakh)

For the For the
Expenditure in Foreign Currencies year ended year ended
March 31, 2022 March 31, 2021
(a) Legal and professional fees - 1
Total - 1
NOTE “30(c)”
Expenditure incurred for corporate social responsibility

(i) Gross amount required to be spent by the Company during the year is ` 99 lakh (FY 2020-21 :
` 106 lakh)
(ii) Amount spent during the year on:
Particulars Paid Yet to be paid Total

Construction / acquisition of any asset - - -
On purposes other than above 99 - -
Total 99 - -
(iii) Nature of CSR activities
We endeavour to improve the lives of the community, especially the socially and economically
underprivileged communities, by making a long term, measurable and positive impact through
projects in the areas of education, climate action, health and skill development.
NOTE “31”
INCOME TAX DISCLOSURES

A The income tax expense consist of the following: (` in lakh)
For the For the
March 31, 2022 March 31, 2021
Current tax:
Current tax expense for the year 1,826 1,538
Current tax expense / (benefit) pertaining to prior years - -
1,826 1,538
Deferred tax benefit
Origination and reversal of temporary differences 159 98
Change in tax rates - -
159 98
Total income tax expense recognised in the year 1,985 1,636
307
B Amounts recognised in OCI (` in lakh)

For the year ended For the year ended
March 31, 2022 March 31, 2021
Particulars Before Tax Net of Before Tax Net of
tax (expense) tax tax (expense) tax
/ benefit / benefit
Items that will not be reclassified to
profit or loss
Remeasurements of defined benefit 9 (2) 7 451 (114) 337
liability (asset)
Items that are or may be reclassified
subsequently to profit or loss
Net change in fair value (144) 38 (106) 458 (107) 351
(135) 36 (99) 909 (220) 688
C The reconciliation of estimated income tax expense at statutory income tax rate and income
tax expenses reported in statement of profit and loss is as follows:
(` in lakh)
For the For the
March 31, 2022 March 31, 2021
Profit before tax 10,295 6,303
Indian statutory income tax rate 25.17% 25.17%
Tax using the Company's domestic tax rate 2,591 1,586
Tax effect of adjustments to reconcile expected income
tax expense to reported income tax expense:
Tax-exempt income - -
Non-deductible expenses 360 684
Tax on income at different rates (966) (634)
Change in tax rates - -
Total income tax expense 1,985 1,636
Note:
The Company’s reconciliation of the effective tax rate is based on its domestic tax rate applicable to
respective financial years.

EARNINGS PER SHARE (EPS): For the year For the year
ended ended
March 31, 2022 March 31, 2021
Profit after tax ` in lakh 8,310 4,667
Profit after tax available for equity shareholders ` in lakh 8,310 4,667
Weighted average number of Equity shares used in Nos 3,51,61,67,744 3,51,61,67,744
computing Basic EPS
Face value of equity shares ` 10 10
Basic EPS ` 0.24 0.13
308

EARNINGS PER SHARE (EPS): For the year For the year
ended ended
March 31, 2022 March 31, 2021
Profit after tax available for equity shareholders ` in lakh 8,310 4,667
Weighted average number of Equity Shares used in Nos 3,51,61,67,744 3,51,61,67,744
computing Basic EPS
Add: Potential weighted average number of Equity Nos - -
shares
Weighted average number of shares in computing Nos 3,51,61,67,744 3,51,61,67,744
Diluted EPS
Face value of equity shares ` 10 10
Diluted EPS ` 0.24 0.13
NOTE “33”
SHARE BASED PAYMENT
A. Description of share based payments:
Particulars ESOP 2018 ESOP 2019 ESOP 2020 ESOP 2021 ESOP 2021 RSU
i. Vesting 20% at the 20% at the 20% at the 20% at the 100% at the end
requirements end of each end of each end of each end of each of 36 months
12 and 24 12 and 24 12 and 20 12 and 24 from the date of
months and months and months and months and grant
30% at the 30% at the 30% at the 30% at the
end of each end of each end of each end of each
36 and 48 36 and 48 32 and 44 36 and 48
months months months months from
from the from the from the the date of
date of date of date of grant
grant grant grant
ii. Maximum term of 7 years 7 years 7 years 7 years 3 years
option
iii. Method of Equity Equity Equity Equity Equity settled
settlement settled settled settled settled
iv. Modifications N.A. N.A. N.A. N.A. N.A.
to share based
payment plans
v. Any other details N.A. N.A. N.A. N.A. N.A.
as disclosed in
the audited Ind AS
financial statements
309
B. Summary of share based payments

March 31, 2022
Particulars ESOP ESOP ESOP ESOP ESOP Total

2018 2019 2020 2021 2021 RSU
Outstanding balance at the 28,00,000 27,50,000 32,25,000 - - 87,75,000
beginning of the year
Options granted - - - 26,25,000 11,31,588 37,56,588
Options forfeited - - - - - -
Options exercised - - - - - -
Options expired - - - - - -
Options lapsed - - - - - -
Options outstanding at the 28,00,000 27,50,000 32,25,000 26,25,000 11,31,588 1,25,31,588
end of the year
Options exercisable at the 19,60,000 11,00,000 6,45,000 - - 37,05,000
end of the year
For share options
exercised:
Weighted average exercise -
price at date of exercise
Money realized by exercise of -
options
For share options
outstanding
Range of exercise prices 50.60 51.00 40.30 51.80 51.80
Average remaining contractual 4.50 5.34 6.34 6.34 2.50 5.36
life of options (years)
Modification of plans N.A. N.A. N.A. N.A. N.A. -
Incremental fair value on N.A. N.A. N.A. N.A. N.A. -
modification
March 31, 2021
Particulars ESOP ESOP ESOP Total

2018 2019 2020
Outstanding balance at the beginning of the year 33,25,000 32,00,000 - 65,25,000
Options granted - - 32,25,000 32,25,000
Options forfeited 5,25,000 4,50,000 - 9,75,000
Options exercised - - - -
Options expired - - - -
Options lapsed - - - -
Options outstanding at the end of the year 28,00,000 27,50,000 32,25,000 87,75,000
Options exercisable at the end of the year 11,20,000 5,50,000 - 16,70,000
Weighted average exercise price at date of exercise -
Money realized by exercise of options -
Range of exercise prices 50.60 51.00 40.30
Average remaining contractual life of options (years) 4.50 5.34 6.34 5.44
Modification of plans N.A. N.A. N.A. -
Incremental fair value on modification N.A. N.A. N.A. -
310
C. Valuation of stock options

The fair value of services received in return for share options granted is based on the fair value of
share options granted, measured using the Black-Scholes formula. The inputs used in measuring
the fair values at grant date of the equity-settled share based payment plans were as follows :

Share price: 50.60 51.00 40.30 51.80
Exercise Price: 50.60 51.00 40.30 51.80
Fair value of option: 23.34 23.02 17.07 22.33
Valuation model used: Black Black Black Scholes Black Scholes
Scholes Scholes valuation valuation
valuation valuation
Expected Volatility: 0.38 0.41 0.42 0.41
Basis of determination of Average Average Historical Historical
expected volatility: historical historical volatility of volatility of
volatility over volatility equity shares equity shares
4.85 years of over 4.85 of comparable of comparable
comparable years of companies companies
companies comparable over the over the
companies period ended period ended
December October
15,2020 based 01,2021 based
on the life of on the life of
options options
Contractual Option Life (years): 7.00 7.00 7.00 7.00
Expected dividends: 0.00 0.00 0.00 0.00
Risk free interest rate: 8.04% 6.28% 5.22% 5.87%
Vesting Dates 20% 20% vesting 20% vesting 20% vesting
vesting on on August on December on September
September 01, 2020 14, 2021 30, 2022
30, 2019
40% 40% vesting 40% vesting 40% vesting
vesting on on August on July 31, on July 31,
September 01, 2021 2022 2023
30, 2020
70% 70% vesting 70% vesting 70% vesting
vesting on on August on July 31, on July 31,
September 01, 2022 2023 2024
30, 2021
100% 100% 100% vesting 100% vesting
vesting on vesting on on July 31, on July 31,
September August 01, 2024 2025
30, 2022 2023
Valuation of incremental fair value N.A. N.A. N.A. N.A.
on modification
311
D) Options granted and inputs used for measurement of fair value of options, for the key
managerial employees and other senior employees
Name of Scheme Mr. Rajiv Sabharwal Mr. Rakesh Bhatia Ms. Sarita Kamath
Granted Exercised Granted Exercised Granted Exercised
ESPS 2009 - - 50,151 50,151 - -
ESPS 2011 - - - - 3,000 3,000
ESOP 2011 - - - - - -
PS 2013 - - - - 323 323
ESPS 2013 - - - - - -
ESOP 2013 - - - - 30,000 30,000
ESOP 2016 - - - - 10,000 10,000
ESOP 2017 - - - - 10,000 10,000
ESOP 2018 16,00,000 - - - 1,00,000 -
ESOP 2019 16,00,000 - - - 1,00,000 -
ESOP 2020 17,60,000 - 2,00,000 - 1,10,000 -
ESOP 2021 12,00,000 - 2,25,000 - 1,12,500 -
ESOP 2021 RSU 5,17,297 - 96,993 - 48,497 -
Total 66,77,297 - 5,72,144 50,151 5,24,320 53,323

Name of Mr. Rajiv Sabharwal Mr. Rakesh Bhatia Ms. Avan Doomasia* Ms. Sarita Kamath*
Scheme
Granted Exercised Granted Exercised Granted Exercised Granted Exercised
ESPS 2009 - - 50,151 50,151 80,615 80,615 - -
ESPS 2011 - - - - - - 3,000 3,000
ESOP 2011 - - - - 60,000 60,000 - -
PS 2013 - - - - 8,690 8,690 323 323
ESPS 2013 - - - - - - - -
ESOP 2013 - - - - - - 30,000 30,000
ESOP 2016 - - - - 10,000 10,000 10,000 10,000
ESOP 2017 - - - - 10,000 10,000 10,000 10,000
ESOP 2018 16,00,000 - - - 1,25,000 - 1,00,000 -
ESOP 2019 16,00,000 - - - 1,00,000 - 1,00,000 -
ESOP 2020 17,60,000 - 2,00,000 - - - 1,10,000 -
Total 49,60,000 - 2,50,151 50,151 3,94,305 1,69,305 3,63,323 53,323
* Ms. Avan Doomasia ceased to be a KMP w.e.f. November 30, 2020 and Ms. Sarita Kamath was
appointed as KMP w.e.f. December 01, 2020.
312
NOTE “34”
EMPLOYEE BENEFIT EXPENSES

A. Defined contribution plans
1 Superannuation Fund
The Company makes contribution towards superannuation fund, a defined contribution retirement
plan for qualifying employees. The Superannuation fund is administered by superannuation fund
set up as Trust by the Company. The Company is liable to pay to the superannuation fund to the
extent of the amount contributed. The Company recognizes such contribution as an expense in the
year of contribution. The Company has recognised ` 48 Lakhs (Year ended 31 March 2021 ` 37
Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss.
B. Defined benefit plans

1 Provident Fund
The Company makes Provident Fund contributions, a defined benefit plan for qualifying employees.
Under the Schemes, both employees and the Company make monthly contributions at a
specified percentage of the covered employees’ salary (currently 12% of employees’ salary). The
contributions, except that the employer’s contribution towards pension fund is paid to the Regional
Provident Fund office, as specified under the law, are made to the provident fund set up as an
irrevocable trust by the Company. The interest rate payable to the members of the trust shall not be
lower than the statutory rate of interest declared by the Central Government under the Employees
Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good
by the Company. Hence the Company is liable for annual contributions and any deficiency in
interest cost compared to interest computed based on the rate of interest declared by the Central
Government. The total liability in respect of the interest shortfall of the Fund is determined on
the basis of an actuarial valuation. The interest liability arising only to the extent of the aforesaid
differential shortfalls is a defined benefit plan. There is no such shortfall as at March 31, 2021.
The Provident Fund contributions along with the interest shortfall if any are recognized as an
expense in the year in which it is determined. The Company has recognised ` 197 Lakhs (Year
ended 31 March 2021 ` 189 Lakhs) for Provident Fund contributions and ` Nil (Year ended 31
March 2021 ₹ Nil) for interest shortfalls in the Statement of Profit and Loss.
2 Gratuity
The Company offers its employees defined benefit plans in the form of a gratuity scheme (a lump-
sum amount). Benefits under the defined benefit plans are typically based on years of service
and the employee’s compensation (generally immediately before retirement). The gratuity scheme
covers substantially all regular employees. Commitments are actuarially determined at year-
end. These commitments are valued at the present value of the expected future payments, with
consideration for calculated future salary increases, using a discount rate corresponding to the
interest rate estimated by the actuary having regard to the interest rate on Government bonds with
a remaining term that is almost equivalent to the average balance working period of employees.
Actuarial valuation is done based on “Projected Unit Credit” method. Gains and losses of changed
actuarial assumptions are recorded in the Other Comprehensive Income.
The Company provides gratuity for employees in India as per payment of Gratuity Act, 1972. The
gratuity scheme for employees is as under:
Eligibility Continuous service for 5 years (not applicable in case of death or

disability while in service)
Benefit payable upon Retirement, Withdrawal, Death/Disability
313
Benefit payable For service less than 10 years: 15/26 X Salary X Service
For service greater than 10 years: Salary X Service
Salary definition Last drawn monthly basic salary + Dearness Allowance
Service definition Number of years of service rounded to the nearest integer
Normal retirement age 60 years
There are no statutory minimum funding requirements for gratuity plans mandated in India.
However, a Company can fund the benefits by way of a separate irrevocable Trust to take
advantage of tax exemptions and also to ensure security of benefits.
The Tata Capital Limited Gratuity Scheme is funded by way of a separate irrevocable Trust and the
Company is expected to make regular contributions to the Trust. The fund is managed internally by
the Company and the assets are invested as per the pattern prescribed under Rule 67 of Income
Tax Rules, 1962. The asset allocation of the Trust is set by Trustees from time to time, taking into
account the membership profile, the liquidity requirements of the plan and risk appetite of the plan
sponsor as per the investment norms. Each year asset-liability matching study is performed in
which the consequences of the strategic investment policies are analysed in terms of risk and return
profiles. Investment and Contribution policies are integrated within this study.
Through its defined benefit plans, the Company is exposed to a number of risks, the most
significant of which are detailed below:
1. Market risk: Market risk is a collective term for risks that are related to the changes and
fluctuations of the financial markets. One actuarial assumption that has a material effect is
the discount rate. The discount rate reflects the time value of money. An increase in discount
rate leads to decrease in defined benefit obligation of the plan benefits and vice versa. This
assumption depends on the yields on the government bonds and hence the valuation of
liability is exposed to fluctuations in the yields as at the valuation date.
2. Salary Inflation risk: Higher than expected increases in salary will increase the defined
benefit obligation.
3. Demographic risk: This is the risk of variability of results due to unsystematic nature of
decrements that include mortality, withdrawal, disability and retirement. The effect of these
decrements on the defined benefit obligation is not straight forward and depends upon the
combination of salary increase, discount rate and vesting criteria.
4. Investment risk: For funded plans that rely on insurers for managing the assets, the value
of assets certified by the insurer may not be the fair value of instruments backing the liability.
In such cases, the present value of the assets is independent of the future discount rate. This
can result in wide fluctuations in the net liability or the funded status if there are significant
changes in the discount rate during the inter-valuation period.
5. Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in
the plan assets due to change in the legislation/regulation. The government may amend the
Payment of Gratuity Act, 1972, thus requiring the companies to pay higher benefits to the
employees. This will directly affect the present value of the defined benefit obligation and
the same will have to be recognized immediately in the year when any such amendment is
effective.
314
Movement in net defined benefit (asset) liability

a) Reconciliation of balances of Defined Benefit Obligations.
(` in lakh)
March 31, 2022 March 31, 2021
Total Total Total Total
Defined Obligations at the beginning 1,412 - 1,451 -
of the year
Current service cost 116 - 114 -
Interest Cost on Defined Benefit Obligations 85 - 86 -
Liabilities / (Assets) assumed on transfer of 10 - 51 -
employees
Actuarial (Gains)/ Losses on obligations arising
from:
c. Due to experience adjustments - - - -
Benefits paid directly by the Company (173) - (178) -
Defined Obligations at the end of the year 1,505 - 1,412 -
b) Reconciliation of balances of Fair Value of Plan Assets

(` in lakh)
March 31, 2022 March 31, 2021
Fair Value at the beginning of the year 2,079 - 1,588 -
Expected return on plan assets 63 - 340 -
Assets transferred on transfer of employees 10 - 51 -
Interest Income on Plan Assets 133 - 100 -
Fair Value of Plan Assets at the end of the 2,285 - 2,079 -
year
c) Funded status
(` in lakh)
March 31, 2022 March 31, 2021
Surplus of plan assets over obligations 780 - 666 -
Total 780 - 666 -
315
d) Categories of plan assets

(` in lakh)
March 31, 2022 March 31, 2021
Corporate bonds 431 - 414 -
Equity shares 165 - 129 -
Government securities 511 - 499 -
Insurer managed funds - ULIP Product 1,078 - 987 -
Cash 100 - 49 -
Total 2,285 - 2,079 -
e) Amount recognised in Balance sheet

(` in lakh)
March 31, 2022 March 31, 2021
Present value of the defined benefit obligation (1,505) - (1,412) -
Fair value of plan assets 2,285 - 2,079 -
Net asset recognised in the Balance Sheet 780 - 666 -
f) Amount recognised in Statement of Profit and Loss

(` in lakh)
March 31, 2022 March 31, 2021
Current Service Cost 116 - 114 -
Interest Cost (net) (48) - (14) -
Expenses for the year 68 - 100 -
g) Amount recognised in OCI

(` in lakh)
March 31, 2022 March 31, 2021
c. Due to experience adjustments - - - -
d. Return on plan assets (excl. interest income) (63) - (340) -
Total remeasurements in OCI (9) - (451) -
Total defined benefit cost recognized in P&L 59 - (351) -
and OCI
316
h) Expected cash flows for the following year

March 31, 2022 March 31, 2021
Expected total benefit payments 2,499 2,201
Year 1 151 137
Year 2 196 143
Year 3 213 187
Year 4 229 202
Year 5 506 208
Next 5 years 1,204 1,323
i) Major Actuarial Assumptions

Discount Rate (%) 6.50% 6.40%
Salary Escalation/ Inflation (%) Non CRE: 8.25%, CRE Non CRE: 8.25%, CRE
& J Grade:6% & J Grade:6%
Expected Return on Plan assets (%) 6.50% 6.40%
Attrition
Mortality Table Indian assured lives Indian assured lives
Mortality (2006-08) Ult. Mortality (2006-08) Ult.
Medical cost inflation
Disability
Withdrawal (rate of employee turnover) CRE and J Grade : 40%; CRE and J Grade : 40%;
Non CRE :Less than Non CRE :Less than
5years 25% and more 5years 25% and more
than 5 years 10% than 5 years 10%
Retirement Age 60 years 60 years
Weighted Average Duration
Guaranteed rate of return
Estimate of amount of contribution 151 137
in the immediate next year
The estimates for future salary increases, considered in actuarial valuation, take into account
inflation, seniority, promotion and other relevant factors.
The expected return on plan assets is based on market expectation, at the beginning of the
period, for returns over the entire life of the related obligation.
The following table shows a reconciliation from the opening balances to the closing balances
for net defined benefit (asset) liability and its components.
317
j) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the defined benefit
obligation by the amounts shown below.
March 31, 2022 March 31, 2021
Increase Decrease Increase Decrease
Discount rate (1% movement) (68) 74 (74) 81
Future salary growth (1% movement) 72 (68) 79 (73)
Others (Withdrawal rate 5% movement) (34) 45 (39) 55
k) Provision for leave encashment

Non current Current Non current Current
Liability for compensated absences 201 27 198 34
Experience Defined Plan assets Surplus/ Experience Experience

adjustments benefit (deficit) adjustments on adjustments
obligation plan liabilities on plan assets
Funded
2021-22 1,505 2,285 780 (62) 63
2020-21 1,412 2,079 666 104 340
Unfunded
2021-22 - - - - -
2020-21 - - - - -
NOTE “35”
List of related parties and relationship:
Holding Company Tata Sons Private Limited
Subsidiaries Tata Capital Financial Services Limited
Tata Capital Housing Finance Limited
Tata Cleantech Capital Limited
Tata Securities Limited
Tata Capital Pte. Limited
Tata Capital Markets Pte. Ltd.(ceased to exist w.e.f. 23.09.2020)
Tata Capital Advisors Pte. Ltd.
Tata Capital Plc
Tata Capital General Partners LLP
Tata Capital Healthcare General Partners LLP
Tata Opportunities General Partners LLP
Tata Capital Growth II General Partners LLP
Tata Capital Healthcare II General Partners LLP
Tata Opportunities II General Partners LLP (ceased to exist w.e.f.
23.09.2020)
318
Tata Capital Growth Fund I

Tata Capital Healthcare Fund I
Tata Capital Innovations Fund
Tata Capital Special Situation Fund
Tata Capital Growth Fund II
Tata Capital Healthcare Fund II
Tata Opportunities II Alternative Investment Fund (ceased to exist w.e.f.
31.03.2021)
Associates Tata Autocomp Systems Limited
Roots Corporation Limited (ceased to be Associate w.e.f. 25.03.2022)
Tata Projects Limited
Tata Play Limited (formerly Tata Sky Limited)
Associates of Tata Capital Financial Services Limited
Shriram Properties Limited (ceased to be Associate w.e.f 22.12.2021)
TVS Supply Chain Solutions Limited
Fincare Business Services Limited
Fincare Small Finance Bank Limited (w.e.f. 21.01.2021)
Associates of Domestic Venture Capital Funds (Portfolio Investments)
Lokmanaya Hospital Private Limited
Novalead Pharma Private Limited
Shriji Polymers (India) Limited (ceased to be Associate w.e.f.
28.08.2020)
Vortex Engineering Private Limited
Pluss Advances Technologies Private Limited (ceased to be
Associate w.e.f. 06.10.2021)
Sea6 Energy Private Limited
Alef Mobitech Solutions Private Limited
TEMA India Private Limited
Kapsons Industries Limited
Tata Technologies Limited
Indusface Private Limited (w.e.f. 21.04.2020)
Linux Laboratories Private Limited (w.e.f. 22.02.2021)
Atulaya Healthcare Private Limited (w.e.f. 20.07.2021)
Cnergyis Infotech India Private Limited (w.e.f. 10.01.2022)
Deeptek Inc, a Delaware Corporation (w.e.f. 28.02.2022)
Post Employment Benefit Tata Capital Limited Gratuity Scheme
Plan Tata Capital Limited Employees Provident Fund
Tata Capital Limited Superannuation Scheme
TCL Employee Welfare Trust
Fellow-subsidiaries Tata Consultancy Services Limited
(with which the Company had Tata Teleservices (Maharashtra) Limited
transactions) Tata AIG General Insurance Company Limited
Tata Digital Private Limited (formerly Tata Digital Limited)
AirAsia (India) Limited
Tata International Limited
Tata Investment Corporation Limited
319
Associate of Holding The Indian Hotels Company Limited

Company Tata Steel Limited
(with which the Company had Tata Consumer Products Limited (formerly Tata Global Beverages
transactions) Limited)
Tata Chemicals Limited
Tata Motors Limited
Voltas Limited
Conneqt Business Solutions Limited (ceased to be related party w.e.f.
16.04.2021)
Joint Venture of Holding Tata AIA Life Insurance Company Limited
Company Tata Industries Limited
(with which the Company had
transactions)
Subsidiary of Associate of Piem Hotels Limited
Holding Company Af-Taab Investment Company Limited (Merged with The Tata Power
(with which the Company had Company Limited w.e.f. 15.03.2022)
transactions)
Other related parties Mrs Sangeeta Sabharwal (Relative of KMP)
Key Management Personnel Mr. Saurabh Agrawal - Chairman and Non-Executive Director
Mr. F. N. Subedar - Non-Executive Director
Ms. Aarthi Subramanian - Non-Executive Director
Ms. Malvika Sinha - Independent Director (appointed w.e.f 01.04.2021)
Ms. Varsha Purandare- Independent Director
Mr. Rajiv Sabharwal - Managing Director & CEO
Ms. Sarita Kamath - Company Secretary (appointed w.e.f 01.12.2020)
Mr. Rakesh Bhatia- Chief Financial Officer
Mr. Nalin M. Shah - Independent Director (retired w.e.f 31.03.2021)
Mr. Mehernosh B. Kapadia - Independent Director (retired w.e.f
23.10.2020)
Ms. Avan Doomasia - Company Secretary (resigned w.e.f 30.11.2020)
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES :

Sr. Party Name Nature of Transactions March March
No. 31, 2022 31, 2021
I Transactions with Holding Company :
1 Tata Sons Private Limited Expense
Provisions for Brand Equity Contribution 83 65
Legal and professional charges - 10
Liabilities
Equity shares held 3,32,458 3,32,458
Provision for Brand Equity Contribution 83 65
320

No. 31, 2022 31, 2021
II Transactions with Subsidiaries :
1 Tata Capital Financial Services Income
Limited Dividend received on Equity shares 12,061 14,995
Interest Income on ICD 9,462 6,672
Interest Income on Investments in Perpetual 1,113 1,113
debt
Rental Income 1,076 973
Marketing & Managerial Service Fees Income 2,155 1,213
Expense
Rent expense 4 3
Reimbursement of Insurance Expenses received (7) (6)
Reimbursement of Electricity expense received (42) (30)
Reimbursement of other expenses received - (88)
Reimbursement of Marketing & Managerial (109) (86)
Service received
Placement fees - 16
Other
Transactions
Investment in Equity shares 30,000 -
ICDs placed during the period 4,89,579 2,48,099
ICDs repaid during the period 5,27,144 1,91,391
Transfer of fixed assets 1 -
Pass through of insurance refund received - 0*
Assets
Investment in Perpetual Debentures 13,560 13,703
ICDs Outstanding - Receivable 77,493 1,15,058
Accrued Interest on ICD Outstanding 495 480
Accrued Interest on Perpetual Debentures 18 18
Trade Receivables 622 549
Other Receivables 4 3
Liabilities
Security Deposit taken 5,622 5,191
Payables
- Towards Rent 0* 0*
- Towards Placement fee - 9
2 Tata Capital Housing Finance Income
Limited Dividend received on Equity shares 8,651 5,038
Interest Income on ICD 581 784
Marketing & Managerial Service Fees Income 1,066 697
Expense
Reimbursement of Insurance Expenses received (2) (2)
Service received
Other
Transactions
ICDs placed during the period 2,92,696 1,23,840
ICDs repaid during the period 2,95,586 1,20,950
Pass through of insurance refund received - 0*
321

No. 31, 2022 31, 2021
Assets
ICDs Outstanding - Receivable - 2,890
Accrued Interest on ICD Outstanding - 20
Commitments
Guarantees issued to National Housing Bank on 18,156 26,237
behalf of TCHFL
3 Tata Cleantech Capital Limited Income
Interest Income on ICD 13 1,528
Rental Income 60 54
Marketing & Managerial Service Fees Income 428 235
Expense
Reimbursement of Insurance Expenses received (0)* (0)*
Reimbursement of Electricity expense (2) (2)
Service received
Other
Transactions
Investments in Equity shares 24,957 -
ICDs placed during the period 18,500 38,500
ICDs repaid back during the period 28,500 78,500
Assets
Investment in Equity Shares 74,062 49,105
ICDs Outstanding - Receivable - 10,000
Accrued Interest on ICD Outstanding - 14
Other Receivables 0* 0*
Liabilities
Security Deposit taken 311 287
4 Tata Securities Limited Expense
Reimbursement of Insurance expenses received (0)* (0)*
Assets
Investment in Equity Shares 789 789
5 Tata Capital Pte. Limited Expense
Reimbursement of Insurance expenses received - (0)*
Assets
6 Tata Capital Advisors Pte. Income
Limited
Income from advisory fees 1,506 1,712
Assets
Trade receivables 13 282
7 Tata Capital Growth Fund I Income
Distribution of Carry income 1,905 112
Distribution of Interest - 4
322

No. 31, 2022 31, 2021
Other
Transactions
Reimbursement of expenses - 11
Assets
Investment in Class A units of fund 5,433 5,791
Trade receivables towards reimbursement - 11
Commitments
Commitments 2,983 2,983
8 Tata Capital Healthcare Fund I Income
Asset Management Fees - 53
Profit on sale of investment - 970
Distribution of Carry income - 5,016
Expense
Provision for Diminution in value of Investment 580 193
Other
Transactions
Proceeds from Divestment - cost - 1,461
Reimbursement of Legal expenses 6 12
Assets
Provision for Diminution in value of Investment (857) (277)
Trade receivables towards reimbursement - 2
Commitments
Commitments 559 559
9 Tata Capital Innovation Fund Income
Profit on sale of investment 1,274 -
Distribution of Interest - 1
Expense
Provision for Diminution in value of Investment 239 1,533
Other
Transactions
Proceeds from Divestment - cost 759 -
Assets
Investment in Class B units of fund 0* 0*
Trade Receivables
- Towards Management Fees 195 195
- Towards Reimbursement of Expenses - 6
Provision for bad & doubtful debts (192) (192)
Commitments
Commitments 45 45
10 Tata Capital Healthcare Fund II Income
Asset Management Fees 2,261 880
Setup fee 113 95
Distribution of Interest 1 0*
Distribution of compensating contribution 41 0*
Expenses
Provision for Diminution in value of Investment (1) 3
323

No. 31, 2022 31, 2021
Other
Transactions
Investment in Units of Fund 1,850 1,282
Return of Capital (646) -
Assets
Investment in units of fund 2,520 1,317
Accrued income 715 0*
Trade Receivables
- Towards Management Fees - 45
- Towards Reimbursement of Expenses 56 -
Commitments
11 Tata Capital Growth Fund II Income
Asset Management Fees 1,316 1,658
Setup fees - 61
Distribution of Interest 1 -
Distribution of compensating contribution - 48
Expense
Provision for Diminution in value of Investment 33 79
Other
Transactions
Investment in Class A1 units of Fund 2,435 9,242
Investment in Class B1 units of Fund 8 32
Reimbursement of expenses 7 96
Assets
Investment in Class A1 units of Fund 14,619 12,184
Accrued income 0* -
Trade Receivables
-Towards Reimbursement of Expenses 7 0*
Commitments
12 Tata Capital Special Situations Assets
Fund
Investment in Class B units of fund 0* 0*
Commitments
Commitments 22 22
III Transactions with Associates :
1 Tata Autocomp Systems Limited Assets
324

No. 31, 2022 31, 2021
2 Roots Corporation Limited Assets
(ceased to be Associate Investment in Equity Shares - 2,062
w.e.f. 25.03.2022)
Provision for Diminution in value of Investment - (625)
3 Tata Projects Limited Other
transactions
Investment in Equity Shares 2,655 -
Assets
4 Tata Play Limited (formerly Assets
Tata Sky Limited)
5 Indusface Private Limited Other
Transactions
6 Linux Laboratories Private Other
Limited Transactions
7 Cnergyis Infotech India Private Other
Limited Transactions
Reimbursement of Legal expenses received 33 -
Assets
Trade Receivables 33 -
IV Transactions with Post Employment Benefit Plans
1 Tata Capital Limited Gratuity Scheme Liabilities
Provision for Trust's exposure to investment in 140 140
IL & FS
2 Tata Capital Limited Expense
Employees Provident Fund Employer Contribution to Provident Fund 182 175
Other
Transactions
Employee Contribution to Provident Fund and 364 529
Voluntary Provident Fund
Liabilities
Provision for Trust's exposure to investment in 285 285
IL & FS
Statutory Liabilities 43 74
3 Tata Capital Limited Expense
Superannuation Scheme Contribution to Superannuation Scheme 48 37
Liabilities
Statutory Liabilities 4 -
4 TCL Employee Welfare Trust Liabilities
Equity shares held 5,280 5,250
V Transactions with Fellow-subsidiaries :
1 Tata Consultancy Services Expense
Limited IT costs 318 240
Liabilities
Provision for IT costs 199 128
2 Tata Teleservices Expense
(Maharashtra) Limited Telephone Services Expenses 2 1
325

No. 31, 2022 31, 2021
3 Tata AIG General Insurance Expense
Company Limited
Insurance premium 14 3
Assets
Advance given 12 8
4 Tata Digital Private Limited Income
(formerly Tata Digital Limited) Interest income on Loan 3,029 -
Other
Transactions
Short Term Loan given 90,000 -
Repayment of Short Term Loan given (90,000) -
5 AirAsia (India) Limited Income
Interest income on Loan 13 -
Other
Transactions
Short Term Loan given 20,000 -
Processing fees received 100 -
Assets
Short term loan given 20,000 -
Accrued interest on loan 13 -
Unamortised processing fees (99) -
6 Tata International Limited Liabilities
7 Tata Investment Corporation Liabilities
Limited
Equity shares held 7,720 7,720
VI Transactions with Associate of Holding Company :
1 The Indian Hotels Company Income
Limited Dividend income 0* 0*
Profit on sale of shares of Roots Corporation 923 -
Limited
Expense
Expenditure - Staff Welfare 9 10
Membership expenses 2 2
Other
Transactions
Investment in Equity Shares 3 -
Proceeds on sale of shares of Roots Corporation 2,062 -
Limited - cost
Reimbursement of Stamp duty on transfer of 0* -
shares
Assets
2 Tata Steel Limited Income
Dividend income 4 2
Other
Transactions
Investment in Equity Shares - 5
Assets
326

No. 31, 2022 31, 2021
3 Tata Consumer Products Liabilities
Limited (formerly Tata Global Equity shares held 61 61
Beverages Limited)
4 Tata Chemicals Limited Liabilities
5 Tata Motors Limited Liabilities
6 Voltas Limited Expense
Dividend on Cumulative Redeemable Preference 366 366
Shares paid
Liabilities
Cumulative Redeemable Preference shares 5,000 5,000
held
7 Conneqt Business Solutions Income
Limited (ceased to be related Rental Income - 462
party w.e.f. 16.04.2021)
Expense
Service providers’ charges - 4
Reimbursement of Electricity expense - (29)
Assets
Trade Receivables - 91
Provision for bad & doubtful debts - (10)
Other Receivables - 14
VII Transactions with Joint Venture of Holding Company :
1 Tata AIA Life Insurance Expense
Company Limited Insurance premium 22 10
Assets
Advance given 27 20
2 Tata Industries Limited Liabilities
VIII Transactions with Subsidiary of Associate of Holding Company :
1 Piem Hotels Limited Expense
Other expenditure 0* 0*
2 Af-Taab Investment Company Liabilities
Limited (Merged with The Tata Equity shares held 233 233
Power Company Limited w.e.f.
15.03.2022)
IX Other related parties
1 Mrs Sangeeta Sabharwal Expense
(Relative of KMP)
Dividend on Cumulative Redeemable Preference 4 4
Shares paid
Liabilities
Cumulative Redeemable Preference shares 50 50
held
X Transactions with KMP :
1 Key Management Personnel Expense
(KMP) Remuneration to KMP
- Short Term Employee Benefits 1,364 1,025
- Post Employment Benefits 42 55
- Termination benefits - 40
327

No. 31, 2022 31, 2021
Other expenditure
- Director Sitting Fees & Commission (on 129 126
payment basis)
Preference shares
ESOP
- Share based payments (No. of Shares)
a) Options granted 22,00,287 20,70,000
b) Options exercised - -
Other
Transactions
Redemption of Cumulative Redeemable - 30
Preference shares
Liabilities
Equity Shares held 35 35
Cumulative Redeemable Preference shares held 100 183
ESOP
- Share based payments (No. of Shares)
a) Total Options granted till date 86,55,498 64,55,211
b) Total Options exercised till date 7,60,211 7,60,211
* Amount less than 50,000
NOTE “36”
LEASES
As a lessee the Company classified property leases as operating leases under Ind AS 116. These
include residential premises taken on lease for employee residence. The leases typically run for a period
of one to three years. Leases include conditions such as non-cancellable period i.e. lock in period, notice
period before terminating the lease or escalation of rent upon completion of part tenure of the lease in
line with inflation in prices.
Information about leases for which the Company is a lessee is presented below.
(i) Right-of-use assets

Right-of-use assets relate to building that are presented seperately within property and
equipment (see note 10)
(` in lakh)
Prepaid rent reclassed - -
Additions during the year 96 -
Deletion during the year (38) -
Depreciation charge for the year (30) (29)
328
(ii) Movement of Lease liabilities

(` in lakh)
Additions during the year 95 -
Deletion during the year (39) -
Finance cost 3 2
Payment of lease liabilities (32) (33)
(iii) Amounts recognised in statement of cash flows

(` in lakh)
Total cash outflow for leases during the year 32 33
(iv) Amounts recognized in the Statement of Profit and Loss

(` in lakh)
Short-term lease rent expense - -
Interest on lease liabilities 3 5
Depreciation of ROU lease asset 30 29
Write off/(Write back) of ROU lease asset - -
(v) Future lease payments required are as follows:

(` in lakh)
Less than one month 2 3
Between one and three months 5 2
Between three months and one year 23 4
Between one and five years 8 -
More than five years - -
Total undiscounted lease liabilities 38 9
Company has considered entire lease term for the purpose of determination of Right-of-use assets
and Lease liabilities.
329
NOTE “37”
OPERATING SEGMENTS
In accordance with Ind AS 108 on Operating Segments, the Company has identified three business
segments i.e. Investment Activity, Private Equity Investments and Others (includes property management
services and managerial & marketing services).The Chief Operating Decision Maker (CODM) of the
Company is the Board of Directors. Operating segment disclosures are consistent with the information
reviewed by the CODM.
(` in lakh)
March 31, 2022 March 31, 2021
I Segment Revenue
(a) Investment activity 37,145 30,609
(b) Private equity investments 8,082 10,561
(c) Others 5,550 4,046
(d) Unallocated 412 2
Total 51,189 45,217
Less : Inter-segment revenue - -
Total Income 51,189 45,217
II Segment Expenses
(c) Others 4,015 2,760
(d) Unallocated 2,822 3,345
Total Expenses 40,894 38,914
III Segment Results
(b) Private equity investments 296 848
(c) Others 1,535 1,286
(d) Unallocated (2,410) (3,343)
Profit before taxation 10,295 6,303
Less : Provision for taxation 1,985 1,636
Profit after taxation 8,310 4,667
Footnote:
Out of the Total Segment Revenue, ` 1,524 lakhs pertains to revenue earned from outside India (For the
year ended March 31, 2021 ` 1,712 lakhs).
330
(` in lakh)
March 31, 2022 March 31, 2021
IV Segment Assets
(a) Investment activity 10,86,218 10,12,605
(c) Others 6,289 6,507
Total 11,26,251 10,51,386
V Segment Liabilities
(c) Others 6,222 6,089
Total 4,24,453 3,58,509
VI Capital Employed
(b) Private equity investments (10,454) (9,416)
(c) Others 67 418
Total 7,01,798 6,92,877

March 31, 2022 March 31, 2021
VII Capital Expenditure (including Capital Work-in-Progress)
(a) Investment activity - -
(b) Private equity investments - -
(c) Others - -
(d) Unallocated (134) (5)
Total (134) (5)
VIII Depreciation, amortisation and impairment
(a) Investment activity - -
(b) Private equity investments 12 15
(c) Others 346 358
(d) Unallocated 352 354
Total 710 727
IX Significant Non-Cash Expenses Other than Depreciation,
amortisation and impairment
(a) Investment activity (122) 79
(b) Private equity investments 852 1,809
(c) Others - 10
(d) Unallocated - -
Total 730 1,898
331
NOTE “38”
FINANCIAL INSTRUMENTS
The significant accounting policies, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 2(iv) to the financial statements.
Financial assets and liabilities

(` in lakh)
Particulars Fair Fair Value Derivative Derivative Amortised Investment Total
value through Other instruments instruments cost in Carrying
through Comprehensive in hedging not in Subsidiary/ Value
Profit or Income relationship hedging Associate/
Loss relationship JV at Cost
Financial Assets:
Cash and cash equivalents - - - - 195 - 195
Other balances with banks - - - - 13 - 13
Trade and other receivables - - - - 1,289 - 1,289
Investments 50,886 13,560 - - - 9,49,551 10,13,997
Loans - - - - 97,510 - 97,510
Other financial assets - - - - 774 - 774
Total 50,886 13,560 - - 99,780 9,49,551 11,13,778
Trade and other payables - - - - 2,306 - 2,306
Debt securities - - - - 2,98,046 - 2,98,046
Subordinated liabilities - - - - 1,10,983 - 1,10,983
Lease liability - - - - 36 - 36
Other financial liabilities - - - - 10,963 - 10,963
Total - - - - 4,22,334 - 4,22,334
(` in lakh)
Particulars Fair Fair Value Derivative Derivative Amortised Investment Total
value through Other instruments instruments cost in Carrying
through Comprehensive in hedging not in Subsidiary/ Value
Profit or Income relationship hedging Associate/
Loss relationship JV at Cost
Financial Assets:
Cash and cash equivalents - - - - 2,511 - 2,511
Other balances with banks - - - - 16 - 16
Trade and other receivables - - - - 1,295 - 1,295
Investments 2,868 13,703 - - - 8,91,692 9,08,263
Loans - - - - 1,27,948 - 1,27,948
Other financial assets - - - - 74 - 74
Total 2,868 13,703 - - 1,31,845 8,91,692 10,40,108
Trade and other payables - - - - 2,036 - 2,036
Debt Securities - - - - 2,29,107 - 2,29,107
Subordinated liabilities - - - - 1,15,740 - 1,15,740
Lease liability - - - - 9 - 9
Other financial liabilities - - - - 9,253 - 9,253
Total - - - - 3,56,145 - 3,56,145
332
Fair value hierarchy:

The Company measures fair values using the following fair value hierarchy, which reflects the
significance of the inputs used in making the measurements:
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at measurement date.
Level 2 - Inputs are inputs, other than quoted prices included within level 1, that are observable for the
asset or liability, either directly or indirectly; (i.e. derived from prices). This category includes instruments
valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or
similar instruments in markets that are considered less than active; or other valuation techniques in which
all significant inputs are directly or indirectly observable from market data.
Level 3 - Inputs are unobservable inputs for the valuation of assets or liabilities that the Company can
access at measurement date. This category includes all instruments for which the valuation technique
includes inputs that are not observable and the unobservable inputs have a significant effect on the
instrument’s valuation. This category includes instruments that are valued based on quoted prices for
similar instruments for which significant unobservable adjustments or assumptions are required to reflect
differences between the instruments. Valuation techniques include net present value and discounted
cash flow models, income approach, comparison with similar instruments for which observable market
prices exist, option pricing models and other valuation models. Assumptions and inputs used in valuation
techniques include risk-free returns, benchmark interest rates and credit spreads used in estimating
discount rates, bond and equity prices, foreign currency exchange rates, equity and equity index prices
and expected price volatilities and correlations.
Valuation models:
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price
that would be received to sell the asset or paid to transfer the liability in an orderly transaction between
market participants at the measurement date.
The Company uses widely recognised valuation models to determine the fair value of financial
instruments, such as interest rate swap and forward rate agreement, that use only observable market
data and require little management judgement and estimation. Observable prices or model inputs are
usually available in the market for listed equity securities and derivatives such as interest rate swaps.
The availability of observable market prices and model inputs reduces the need for management
judgement and estimation and also reduces the uncertainty associated with determining fair values.
For more complex instruments, the Company uses proprietary valuation models, which are usually
developed from recognised valuation models. Some or all of the significant inputs into these models may
not be observable in the market, and may be derived from market prices or rates or estimated based
on assumptions. Valuation models that employ significant unobservable inputs require a higher degree
of management judgement and estimation in the determination of fair value. Management judgement
and estimation are usually required for the selection of the appropriate valuation model to be used,
determination of expected future cash flows on the financial instrument being valued, determination
of the probability of counterparty default and prepayments, determination of expected volatilities and
correlations and selection of appropriate discount rates.
Fair value estimates obtained from models are adjusted for any other factors, such as liquidity risk
or model uncertainties, to the extent that the Company believes that a third party market participant
would take them into account in pricing a transaction. Fair values reflect the credit risk of the instrument
and include adjustments to take account of the credit risk of the Company and the counterparty where
appropriate. Model inputs and values are calibrated against historical data, where possible, against
current or recent observed transactions in different instruments. This calibration process is inherently
subjective and it yields ranges of possible inputs and estimates of fair value, and management uses
judgement to select the most appropriate point in the range.
333
Discounting of the cash flows of financial asset/ financial liability for computing the fair value of such
instrument: the future contractual cash flows of instrument over the remaining contractual life of the
instrument are discounted using comparable rate of lending/borrowing as applicable to financial asset/
financial liability in the month of reporting for a similar class of instruments.
Valuation framework:
The Company has an established policy for the measurement of fair values addressing the requirement
to independently verify the results of all significant fair value measurements. Specific controls include:
1) verification of observable pricing basis actual market transactions;
2) re-performance of model valuations;
3) a review and approval process for new models and changes to models
4) annual calibration and back-testing of models against observed market transactions;
5) analysis and investigation of significant annual valuation movements; and
6) review of significant unobservable inputs, valuation adjustments and significant changes to the fair
value measurement of Level 3 instruments compared with the previous period.
When third party information, such as valuation agency report is used to measure fair value, the
Company assesses the documents and evidence used to support the conclusion that the valuations meet
the requirements of Ind AS. This includes:
1) understanding how the fair value has been arrived at, the extent to which it represents actual
market transactions and whether it represents a quoted price in an active market for an identical
instrument;
2) when prices for similar instruments are used to measure fair value, how these prices have been
adjusted to reflect the characteristics of the instrument subject to measurement; and
3) if a number of quotes for the same financial instrument have been obtained, then how fair value has
been determined using those quotes.
Significant valuation issues are reported to the Audit Committee.
The following table summarises financial assets and liabilities measured at fair value on a recurring basis:
(` in lakh)
As at March 31, 2022 Level 1 Level 2 Level 3 Total
Financial Assets:
Equity Shares 266 - - 266
Mutual fund units - 47,815 - 47,815
Investments in Category III Alternative Investment Fund - - 2,806 2,806
Investment in Perpetual Debt - 13,560 - 13,560
Total 266 61,375 2,806 64,446
(` in lakh)
As at March 31, 2021 Level 1 Level 2 Level 3 Total
Financial Assets:
Equity Shares 156 - - 156
Mutual fund units - 301 - 301
Investments in Category III Alternative Investment Fund - - 2,411 2,411
Investment in Perpetual Debt - 13,703 - 13,703
Total 156 14,004 2,411 16,571
334
Reconciliation of Level 3 fair value measurement

(` in lakh)
March 31, 2022 March 31, 2021
Opening Balance 2,411 2,040
in profit or loss 395 371
Closing Balance 2,806 2,411
Total gains or losses for the period in the above table are presented in the statement of profit or
loss and OCI as follows.
(` in lakh)
March 31, 2022 March 31, 2021
- Recognised in profit or loss
Net Gains / (Losses) on Fair Value Changes
Fair Value Changes:
- Realised - -
- Unrealised 395 371
- Recognised in OCI - -
Total Net gain on fair value changes 395 371
The following table summarises disclosure of fair value of financial assets and liabilities measured at
amortised cost :
(` in lakh)
Measured at Level 3 March 31, 2022 March 31, 2021 Fair
Value
Carrying Fair Carrying Fair
level
Value value Value value
Financial Liabilities at amortised cost:
Debt Securities 2,98,046 2,99,017 2,29,107 2,38,519 Level 3
Subordinated liabilities 1,10,983 1,10,833 1,15,740 1,15,907 Level 3
Total 4,09,029 4,09,850 3,44,848 3,54,426
The Company has not disclosed fair values for cash and cash equivalents, other balances with bank,
trade and other receivables, loans, other financial assets, trade and other payables and other short term
financial liabilities because their carrying amounts are a reasonable approximation of fair value.
335
The following table summarises valuation techniques used to determine fair value, fair value
measurements using significant unobservable inputs (level 3) and valuation inputs and relationship to fair
value
(` in lakh)
Financial instruments Fair value as at Fair value Valuation Significant Relationship of
hierarchy technique(s) unobservable unobservable inputs
March 31, 2022 March 31, 2021 and key input(s) input(s) to fair value
Equity Shares 266 156 Level 1 Published Market N.A. N.A.
Price
Mutual fund units 47,815 301 Level 2 Net Asset Net Asset Higher the Net Asset
Value Value Value higher the fair
value of unquoted units
Investments in Category III 2,806 2,411 Level 3 Net Asset Net Asset Higher the Net Asset
Alternative Investment Fund Value Value Value higher the fair
value of unquoted units
Investment in Perpetual 13,560 13,703 Level 2 Gsec yields as Gsec yields Lower the risk adjusted
Debt increased by risk as increased Gsec yield higher the
based spreads by risk based fair value of debt
(Published by spreads
FIMMDA)
Financial Assets at 64,446 16,571
FVTPL/FVTOCI
There were no significant transfers between Level 1 and Level 2 and Level 3 of the fair value hierarchy
in the period.
Sensitivity disclosure for level 3 fair value measurements:
(` in lakh)
Particulars Unobservable Sensitivity Impact of change in rates on Total Comprehensive
Input Income
Favourable Unfavourable Favourable Unfavourable
Investments in Net Asset 1% 8 (8) 4 (4)
Category III Value (NAV)
Alternative
Investment Fund
336
NOTE “39”
FINANCIAL RISK REVIEW

Financial instruments of the Company have exposure to the following risks:
1 Credit Risk
2 Liquidity Risk
3 Market Risk
4 Operational Risk
5 Capital management Risk
Company’s Risk Management framework for measuring and managing risk:
The Company’s Board of Directors have the overall responsibility for the establishment and oversight
of the risk management framework. The Board of Directors have constituted following committees and
defined their role for monitoring the risk management policies of the Company.
Finance & Asset Liability Supervisory Committee (ALCO): Review of the Asset and Liability position,
liquidity risk and market risk of the Company.
Risk Management Committee: Review of the credit risk, operational risk and fraud risk management
of the Company. Operational risk Management committee (ORMC) reviews operational risk as per the
operational risk management framework. Fraud risk management committee (FRMC) reviews matters of
frauds committed by employee, customer and vendor.
The Company’s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The
risk management policies and systems are reviewed regularly to reflect changes in the market conditions
and the activities of the Company. The Company, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees
understand their roles and obligations. The Risk Management Committee oversees how the Management
monitors compliance with the risk management policies and procedures and reviews the adequacy of
the risk management framework in relation to the risks faced by the Company. The Audit Committee is
assisted in its oversight role by the Internal Audit Department. The Internal Audit Department undertakes
both regular and adhoc reviews of risk management controls and procedures, the results of which are
reported to the Audit Committee.
Tata Capital Limited is a Core Investment Company (CIC-ND-SI) and only has investments in and loans
to group companies. Though there is an uncertainty in the environment, given the nature of its business,
it is expected that the impact of the pandemic on the company and its operations will be minimal.
1 Credit Risk
Tata Capital Limited and all of its subsidiaries have been rated CRISIL AAA/stable. The loans given
to group companies are repayable by the companies on demand. Thus, TCL can call back a loan
from the group companies as and when its liabilities fall due. The group companies rely on unused
bank lines as the main liquidity back up to meet the contingency funding plan. Additionally, they also
maintain a portfolio of highly liquid mutual fund units. Thus, the Company is not exposed to any
Credit Risk on account of loans given.
The Company has computed ECL on loans and trade receivables using the Simplified Method.
This approach uses historical credit loss experience, for each revenue stream, of the Company to
estimate Lifetime Expected Credit Loss and compute a provision matrix. The data shows that we
have not suffered any losses from trade receivables in past.
For 2022, historical data of trade receivable is averaged for 5 years i.e. from 2021 till 2017. Based
on reasonable and supportable information that is available without undue cost or effort, for 2021
similar data is averaged for 5 years which is from 2020 till 2016.
337
However, as per CIC master circular DNBR. PD. 003/03.10.119/2016-17, Company carries
impairment allowance provisions at 0.4% on loans and advances.
(i) Breakup of ECL

(` in lakh)
As at March 31, 2022 Amount ECL % of ECL
outstanding
Loans 98,001 392 0.4%
Investment in Perpetual Debt Instruments 13,560 54 0.4%
Trade and Other Receivables 1,294 5 0.4%
Total 1,12,855 451
As at March 31, 2021 Amount ECL % of ECL
outstanding
Loans 1,28,462 514 0.4%
Investment in Perpetual Debt Instruments 13,703 55 0.4%
Trade and Other Receivables 1,301 5 0.4%
Total 1,43,466 574
Bank balances of the company are with highly rated banks. Hence, the Company doesn’t
expect any ECL on cash and cash equivalents and other bank balances.
(ii) Movement in loss allowance

(` in lakh)
March 31, 2022 March 31, 2021
Opening balance 574 494
Addition during the year (122) 79
Reversed during the year - -
Closing balance 451 574
2 Liquidity Risk
‘Liquidity risk’ is the risk that the Company will encounter difficulty in meeting its day to day financial
obligations.
Tata Capital Limited is registered with RBI as a CIC. The Company is an investment holding
company and consequently holds assets in the form of investments in equity shares, preference
shares, bonds, debentures, debt or loans to group companies.
Management of liquidity risk

(i) Company’s Board of Directors sets the strategy for managing liquidity risk commensurate with
the business objectives.
(ii) The Board has delegated the responsibility of managing overall liquidity risk and interest rate
risk management to a committee of the Board of Directors, in form of Finance & Asset Liability
Supervisory Committee (ALCO).
(iii) Treasury department manages the liquidity position on a day-to-day basis and reviews daily
reports covering the liquidity position of the Company.
(iv) The Company’s approach to managing liquidity is to ensure sufficient liquidity to meet its
liabilities when they are due without incurring unacceptable losses or risking damage to the
Company’s reputation.
338
The key elements of the Company’s liquidity risk management strategy are as follows:
(i) Maintaining a diversified funding resources base such as debentures, commercial papers and
preference shares.
(ii) The loans given to group companies are repayable by the companies on demand. Thus, TCL
can call back a loan from the group companies as and when its liabilities fall due. The group
companies rely on unused bank lines as the main liquidity back up to meet the contingency
funding plan. Additionally, they also maintain a portfolio of highly liquid mutual fund units.
(iii) Under the ALM guidelines, the dynamic liquidity statement and structural liquidity statement
are being prepared on monthly basis to monitor the maturity gaps in the Assets and Liabilities
cash flows. Treasury monitors the behavioural characteristics of the Company’s financial
assets and financial liabilities while preparing the structural liquidity statement.
The maturity analysis of financial liabilities and financial assets has been disclosed in note 39 A to
the financial statements.
3 Market Risk
‘Market risk’ is the risk that changes in market prices – e.g. interest rates, equity prices, foreign
exchange rates and credit spreads (not relating to changes in the obligor’s/issuer’s credit
standing) – will affect the Company’s income or the value of its holdings of financial instruments.
The objective of the Company’s market risk management is to manage and control market risk
exposures within acceptable parameters to ensure the solvency while optimising the return on risk.
Exposure to Market Risk : Interest rate risk
The core business of the Company is borrowing and investment in equity shares, preference
shares, bonds, debentures, debt or loans to group companies as permitted by the Core Investment
Companies (Reserve Bank) Directions, 2016. These activities expose us to interest rate risk.
Company carries out interest rate sensitivity analysis to assess the impact of interest rate movement
on earnings, the floating rate assets and liabilities based on exposure as on end of reporting period are
considered as an outstanding for whole year. The fixed rate assets and liabilities which are falling due
on residual basis within one year have been considered as floating rate assets and liabilities respectively
basis the minimum of ‘interest rate reset date or maturity of the contract’. The basis risk between various
benchmark linked to assets and liabilities are considered to be insignificant.
On asset side, the company has loans (Inter corporate deposits) given at floating rate of interest,
investment in Perpetual Debentures at fixed rate of interest.
On liabilities side, the company has borrowings in the form of Commercial Papers and Non-
Convertible Debentures and Subordinate Liabilities issued at fixed rate of interests.
Below table illustrates impact on earnings on account of 100 bps change in interest rate on the
floating rate loans & borrowings due for repayment / rate reset in next one year.
As at March 2022 (` in lakh)
Particulars Less than @ 100bps @ 100bps
1 Year change increase change decrease
Rate sensitive assets 97,510 910 (910)
Rate sensitive liabilities 1,06,387 (597) 597
Net Gap (Asset - liability) (8,877) 313 (313)
As at March 2021 (` in lakh)

Particulars Less than 1 @ 100bps @ 100bps
Year change increase change decrease
Rate sensitive assets 1,27,948 1,226 (1,226)
Rate sensitive liabilities 95,122 (289) 289
Net Gap ( Asset - liability) 32,826 937 (937)
339
4 Operational Risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated
with the Company’s processes, personnel, systems and from external factors other than credit,
compliance, reputation, market and liquidity risks.
The Company has a Board approved Operational Risk Management framework. Ongoing
monitoring of Key Risk Indicators (“KRI”) is done and corrective actions are implemented on KRI
exceptions. An oversight committee of Senior Management representatives viz. the Operational Risk
Management Committee, meets periodically to review the operational risk profile of the Company.
Risks associated with frauds are mitigated through a Fraud Risk Management framework. A Fraud
Risk Management Committee comprising representatives of the Senior Management, reviews
matters relating to fraud risk, including corrective and remedial actions as regards people and
processes.
The Company has also adopted “Framework for Improving Critical Infrastructure Cyber Security”
published by the National Institute of Standards & Technology (NIST) and complies with regulatory
guidelines. Various Measures are adopted to effectively protect against phishing, social media
threats and rogue mobile.
5 Capital Management Risk

The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company
from time to time. The Core Investment Companies (Reserve Bank) Directions, 2016, stipulate that
the Adjusted Net Worth of a CIC-ND-SI shall at no point in time be less than 30% its risk weighted
assets on balance sheet and risk adjusted value of off-balance sheet items as on date of the last
audited balance sheet as at the end of the financial year.
The Core Investment Companies (Reserve Bank) Directions, 2016, further stipulate that the outside
liabilities of a CIC-ND-SI shall at no point of time exceed 2.5 times its Adjusted Net Worth as on
date of the last audited balance sheet as at the end of the financial year.
The Company’s policy is to maintain a strong capital base to maintain investor, creditor and
shareholder confidence and to sustain the future development of the business. The impact of the
level of capital on shareholders’ returns is also recognised and the Company recognises the need
to maintain a balance between the higher returns that might be possible with greater gearing and
the advantages and security afforded by a stronger capital position.
Although maximisation of the return on risk-adjusted capital is the principal basis used in
determining how capital is allocated within the Company to particular operations or activities,
it is not the sole basis used for decision making. Account is also taken of synergies with other
operations and activities, the availability of management and other resources, and the fit of the
activity with the Company’s longer-term strategic objectives. The Company’s policies in respect of
capital management and allocation are reviewed regularly by the Board of Directors.
The Company has complied with minimum stipulated capital requirement which has been disclosed
in note 41 in the financial statements.
340
A. Liquidity risk
Maturity analysis for financial liabilities and financial assets
The following tables set out the remaining contractual maturities of the Group’s financial liabilities
and financial assets:
As at March 31, 2022 Carrying Gross 1 to 7 8 to 14 15 days Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5
amount nominal days days to 30/31 month to month month months year years years
inflow/ days 2 months to 3 to 6 to 1 year to 3 to 5
(outflow) (One months months years years
month)
Financial Liability
Trade payables 2,306 2,306 - - - - - - 2,306 - - -
Debt securities issued 2,98,046 2,98,046 - - 2,766 - 40,798 2,295 49,103 1,82,595 20,489 -
Subordinated liabilities 1,10,983 1,10,983 - - - - - 11,332 - 99,651 - -
Lease liability 36 36 - - 2 2 3 8 15 6 - -
Other financial liabilities 10,963 10,963 13 - - - - 5,933 5,017 - - -
Total 4,22,334 4,22,334 13 - 2,768 2 40,801 19,568 56,441 2,82,252 20,489 -
Market Borrowings 4,09,029 - - 2,766 - 40,798 13,627 49,103 2,82,245 20,489 -
Bank borrowings - - - - - - - - - - -
Total Borrowings 4,09,029 - - 2,766 - 40,798 13,627 49,103 2,82,245 20,489 -
Financial Asset
Cash and cash equivalents 195 195 195 - - - - - - - - -
Other balances with banks 13 13 13 - - - - - - - - -
Receivables 1,289 1,289 - - - - - - 1,289 - - -
Loans 97,510 97,510 77,988 - - - - - 19,522 - - -
Investments 10,13,997 10,13,997 - - - - - - - - - 10,13,997
Other Financial Assets 774 774 - - - - - - 715 7 - 52
Total 11,13,778 11,13,778 78,196 - - - - - 21,526 7 - 10,14,049
As at March 31, 2021 Carrying Gross 1 to 7 8 to 14 15 days Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5
amount nominal days days to 30/31 month to month month months year years years
inflow/ days 2 months to 3 to 6 to 1 year to 3 to 5
(outflow) (One months months years years
month)
Financial Liability
Trade payables 2,036 2,036 - - - - - - 2,036 - - -
Debt securities issued 2,29,107 2,29,107 - - 65 - 795 10,156 32,680 1,54,932 30,478 -
Subordinated liabilities 1,15,740 1,15,740 - - - 12,757 - - 51,384 51,599 - -
Lease liability 9 9 - - 3 1 1 3 2 - - -
Other financial liabilities 9,253 9,253 16 - - - - - 3,758 5,478 - -
Total 3,56,145 3,56,145 16 - 68 12,758 796 10,159 89,860 2,12,009 30,478 -
Market Borrowings 3,44,847 - - 65 12,757 795 10,156 84,065 2,06,531 30,478 -
Bank borrowings - - - - - - - - - - -
Total Borrowings - 3,44,847 - - 65 12,757 795 10,156 84,065 2,06,531 30,478 -
Financial Asset
Cash and cash equivalents 2,511 2,511 2,511 - - - - - - - - -
Other balances with banks 16 16 16 - - - - - - - - -
Receivables 1,296 1,296 - - - - - - 1,296 - - -
Loans 1,27,948 1,27,948 - - 1,000 2,000 7,000 15,000 1,02,948 - - -
Investments 9,08,263 9,08,263 - - - - - - - - - 9,08,263
Other Financial Assets 74 74 - - - 16 - - 6 - - 52
Total 10,40,108 10,40,108 2,527 - 1,000 2,016 7,000 15,000 1,04,249 - - 9,08,315
341
B. Liquidity risk
Maturity analysis of financial assets and financial liabilities
The table below shows an analysis of assets and liabilities analysed according to when they are
expected to be recovered or settled.
(` in lakh)
ASSETS Within 12 After 12 Total Within 12 After 12 Total
months months months months
Cash and cash equivalents 195 - 195 2,511 - 2,511
Other balances with banks 13 - 13 16 - 16
Trade receivables 1,289 - 1,289 1,296 - 1,296
Loans 97,510 - 97,510 1,27,948 - 1,27,948
Investments - 10,13,997 10,13,997 - 9,08,263 9,08,263
Other financial assets 715 59 774 22 52 74
Financial Assets 99,722 10,14,056 11,13,778 1,31,793 9,08,315 10,40,108
Current tax asset - 2,222 2,222 - 826 826
Deferred tax Assets (Net) - - - - 42 42
Investment property - 4,935 4,935 - 5,247 5,247
Property, Plant and Equipment - 3,504 3,504 - 3,745 3,745
Other Intangible assets - 2 2 - 4 4
Right of use assets - 37 37 - 9 9
Other non-financial assets 699 1,074 1,773 295 1,110 1,405
Non-financial Assets 699 11,774 12,473 295 10,983 11,278
Total Assets 1,00,421 10,25,830 11,26,251 1,32,088 9,19,298 10,51,386
LIABILITIES
Trade Payables
(i) total outstanding dues of
micro enterprises and small
enterprises 9 - 9 2 - 2
(ii) total outstanding dues of
creditors other than micro
enterprises and small
enterprises 2,297 - 2,297 2,034 - 2,034
Debt securities 94,963 2,03,083 2,98,046 43,697 1,85,410 2,29,107
Subordinated liabilities 11,332 99,651 1,10,983 64,142 51,598 1,15,740
Lease liability 30 6 36 9 - 9
Other financial liabilities 10,963 - 10,963 3,774 5,479 9,253
Financial Liabilities 1,19,594 3,02,740 4,22,334 1,13,658 2,42,487 3,56,145
Provisions 27 409 436 33 402 435
Deferred tax liabilities (Net) - 80 80 - - -
Other non financial liabilities 1,603 - 1,603 1,317 612 1,929
Non-Financial Liabilities 1,630 489 2,119 1,350 1,014 2,364
Total liabilities 1,21,224 3,03,229 4,24,453 1,15,008 2,43,501 3,58,509
342
NOTE “40”
ASSET LIABILITY MANAGEMENT
Maturity pattern of Financial assets and Financial liabilities (Based on RBI Guidelines):
The following table sets out remaining contractual maturities of company’s financial assets & financial
liabilities

Particulars Financial Liabilities Financial Assets
Borrowings Market Other Advances Investments Other
from Banks Borrowings Financial Financial
Liabilities Assets
1 to 7 days - - 13 77,988 - 208
8 to 14 days - - - - - -
15 days to 30/31 days - 2,766 2 - - -
(One month)
Over 1 month to 2 months - - 2 - - -
Over 2 months to 3 months - 40,798 3 - - -
Over 3 months to 6 months - 13,627 5,941 - - -
Over 6 months to 1 year - 49,103 7,337 19,522 - 2,004
Over 1 year to 3 years - 2,82,245 6 - - 7
Over 3 years to 5 years - 20,489 - - - -
Over 5 years - - - - 10,13,997 52
Total - 4,09,029 13,305 97,510 10,13,997 2,270
Note :Advances of ` 77,988 lakhs represents Inter corporate deposits (including interest accrued) given to
subsidiaries which are callable on demand to meet maturities of borrowings.

Particulars Financial Liabilities Financial Assets
Borrowings Market Other Advances Investments Other
from Banks Borrowings Financial Financial
Liabilities Assets
1 to 7 days - - 16 - - 2,527
8 to 14 days - - - - - -
15 days to 30/31 days - 65 3 1,000 - -
(One month)
Over 1 month to 2 months - 12,757 1 2,000 - 16
Over 2 months to 3 months - 795 1 7,000 - -
Over 3 months to 6 months - 10,156 3 15,000 - -
Over 6 months to 1 year - 84,065 5,795 1,02,948 - 1,301
Over 1 year to 3 years - 2,06,531 5,478 - - -
Over 3 years to 5 years - 30,478 - - - -
Over 5 years - - - - 9,08,263 52
Total - 3,44,847 11,297 1,27,948 9,08,263 3,897
Note: Advances of ` 1,27,948 lakh represents Inter corporate deposits (including interest accrued) given to
subsidiaries which are callable on demand to meet maturities of borrowings.
343
NOTE “41”
CORE INVESTMENT COMPANY (“CIC”) COMPLIANCE RATIOS :

(` in lakh)
Sr. Particulars As at As at
No. March 31, 2022 March 31, 2021
(a) Investments & loans to group companies as a proportion of 96% 96%
Net Assets (%)
(b) Investments in equity shares and compulsorily convertible 86% 83%
instruments of group companies as a proportion of Net
Assets (%)
(c) Capital Adequacy Ratio (%) 61% 64%
[Adjusted Net worth / Risk Weighted Assets]
(d) Leverage Ratio (Times) 0.63 0.56
[Outside liabilities / Adjusted Networth]
As per RBI circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 and DOR
(NBFC).CC.PD.No.116/22.10.106/2020-21 dated July 24, 2020, unrealised gains arising out of fair
valuation of financial instruments (net of tax), are ignored for calculation of “owned funds”; consequently,
the net unrealised gains are also excluded from Risk Weighted Assets (RWA).
NOTE “42”
EXPOSURE TO REAL ESTATE SECTOR
(` in lakh)
Sr. Particulars As at As at
No. March 31, 2022 March 31, 2021
i) Direct Exposure
Residential Mortgages - NIL NIL
Lending fully secured by mortgages on residential property that
is or will be occupied by the borrower or that is rented:
– Individual housing loans up to ` 15 lakh NIL NIL
– Individual housing loans above ` 15 lakh NIL NIL
Commercial Real Estate - NIL NIL
Lending secured by mortgages on commercial real estates
(office buildings, retail space, multipurpose commercial
premises, multi-family residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, hotels,
land acquisition, development and construction, etc). Exposure
includes non-fund based (NFB) limits.
Investments in Mortgage Backed Securities (MBS) and other
securitised exposures -
1. Residential NIL NIL
2. Commercial Real Estate NIL NIL
ii) Indirect Exposure
Fund based exposure on Housing Finance Companies (Refer footnote 1) 2,40,600 2,43,510
Non-fund based exposure on National Housing Bank (Refer footnote 2) 18,156 26,237
Footnotes
1 Represents investments in Equity and Inter Corporate Deposits (including accrued interest) of Tata
Capital Housing Finance Limited.
344
2 Guarantees issued to National Housing Bank on behalf of Tata Capital Housing Finance Limited
` 120,000 lakh (As at March 31, 2021 : ` 120,000 lakh) against which the amount liable by Tata
Capital Housing Finance Limited is ` 18,156 lakh as at March 31, 2022 (As at March 31, 2021
` 26,237 lakh). Pursuant to the terms of the Guarantee, the Company’s liability on invocation is
capped at the outstanding amount.
NOTE “43”
Disclosure of details as required by RBI/DoR(NBFC)/2016-17/39 i.e. Master

Direction - Core Investment Companies (Reserve Bank) Directions, 2016 dated
August 25, 2016 (Updated as on October 5, 2021)
Liabilities Side: (` in lakh)
Particulars Amount Outstanding as at Amount Overdue as at
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
1) Loans and advances availed by the CIC
inclusive of interest accrued thereon
but not paid
a) Debentures: (other than those falling
within the meaning of Public deposits)
(i) Secured - - - -
(ii) Unsecured (Refer footnote 1) 2,93,289 2,29,107 - -
b) Deferred Credits - - - -
c) Term Loans - - - -
d) Inter-corporate loans and borrowing - - - -
e) Commercial Paper (Refer footnote 2) 4,757 - - -
f) Other loans (Bank overdraft) - - - -
g) Other loans (Subordinated liabilities) 1,10,983 1,15,740
Footnotes :
1 Outstanding amount of Unsecured Debentures is net off deferred revenue expenditure to the extent
not written off and TDS on interest accrued but not paid.
2 Outstanding amount of Commercial Paper is net off deferred revenue expenditure to the extent not
written off.
Assets Side: (` in lakh)
Particulars Amount Outstanding
March 31, March 31,
2022 2021
2) Break up of Loans and Advances including bills receivables
(other than those included in (4) below)
a) Secured 19,834 -
b) Unsecured 80,600 1,29,795
3) Break up of Leased Assets and stock on hire and other assets
counting towards AFC activities
i) Lease assets including lease rentals under sundry debtors:
(a) Financial Lease - -
(b) Operating Lease - -
345
Assets Side: (` in lakh)

Particulars Amount Outstanding
March 31, March 31,
2022 2021
ii)Stock on hire including hire charges under sundry debtors
(a) Assets on hire - -
(b) Repossessed assets - -
iii) Other loans counting towards Asset Financing Company activities
(a) Loans where assets have been repossessed - -
(b) Loans other than (a) above - -
4) Break up of Investments
Current Investments:
1 Quoted:
(i) Shares:
(a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of Mutual Funds - -
(iv) Government Securities - -
(v) Others - -
2 Unquoted:
(i) Shares:
(a) Equity - -
(b) Preference - -
(v) Others - -
Long Term Investments :
1 Quoted:
(i) Shares:
(a) Equity 266 156
(b) Preference - -
(v) Others - -
2 Unquoted:
(i) Shares:
(a) Equity (Refer Footnote 1) 9,24,261 8,68,086
(b) Preference - -
(ii) Debentures and Bonds 13,560 13,703
(iii) Units of Mutual Funds 47,815 301
(v) Others (Refer Footnote 1 & 2) 28,096 26,017
Footnote
1 Investments in equity shares as at March 31, 2022 are net of impairment provision of Nil (as
at March 31, 2021 ` 625 lakh) and Investments in others as at March 31, 2022 are net of
impairment provision of ` 7,069 lakh (as at March 31, 2021 ` 6,217 lakh).
2 Others include investment in Venture capital units and investments in units of category III AIFs.
346
5) Borrower group-wise classification of assets financed as in (2) and (3) above :

For 2021-22 (` in lakh)
Category Amount net of provisions
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - 79,464 79,464
(b) Companies in the same group 19,834 12 19,846
(c) Other related parties - 69 69
(d) Other than related parties - 1,055 1,055
Total 19,834 80,600 1,00,434
For 2020-21 (` in lakh)

Category Amount net of provisions
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - 1,29,149 1,29,149
(b) Companies in the same group - 17 17
(c) Other related parties - 115 115
(d) Other than related parties - 514 514
Total - 1,29,795 1,29,795
6) Investor group-wise classification of all investments (current and long-term) in shares and
securities (both quoted and unquoted)
(` in lakh)
Market Value / Market Value /
Category Book Value Book Value
Breakup Value Breakup Value
(Net of (Net of
or Fair Value or Fair Value
Provisions) Provisions)
or NAV or NAV
1. Related Parties
(a) Subsidiaries 13,89,976 9,33,863 11,79,082 8,77,365
(b) Companies in the same group - - - -
(c) Other related parties 57,312 29,514 48,130 28,186
(d) Other than related parties 50,621 50,621 2,712 2,712
Total 14,97,909 10,13,997 12,29,924 9,08,263
347
7) Other Information
(` in lakh)
March 31, 2022 March 31, 2021
Amount Amount
(i) Gross Non-Performing Assets
(a) Related Parties - -
(b) Other than Related Parties - -
(ii) Net Non-Performing Assets
(a) Related Parties - -
(b) Other than Related Parties - -
(iii) Assets acquired in satisfaction of debt - -
NOTE “44”
Disclosure of details as required by RBI/2020-21/24/DoR (NBFC) (PD) CC. No.

117/03.10.001/2020-21 dated August 13, 2020
Components of ANW and other related requirement
(` in lakh)
March 31, 2022 March 31, 2021
i) ANW as a % of Risk Weighted Assets 61% 64%
ii) Unrealized appreciation in the book value of quoted - -
investments
iii) Diminution in the aggregate book value of quoted - -
investments
iv) Leverage Ratio 0.63 0.56
Investment in other CICs

(` in lakh)
March 31, 2022 March 31, 2021
a) Total amount representing any direct or indirect capital - -
contribution made by one CIC in another CIC (including
name of CICs)
b) Number of CICs with their names wherein the direct - -
or indirect capital contribution exceeds 10% of Owned
Funds
c) Number of CICs with their names wherein the direct or - -
indirect capital contribution is less than 10% of Owned
Funds
348
Off Balance Sheet Exposure

(` in lakh)
March 31, 2022 March 31, 2021
a) Off balance sheet exposure 18,156 26,237
b) Financial Guarantee as a % of total off balance sheet 100% 100%
exposure
c) Non-Financial Guarantee as a% of total off balance - -
sheet exposure
d) Off balance sheet exposure to overseas - -
subsidiaries
e) Letter of Comfort issued to any subsidiary 3,46,207 3,75,842
Investments
(` in lakh)
March 31, 2022 March 31, 2021
1) Value of Investments
(i) Gross Value of Investments
(a) In India 10,10,259 9,04,298
(b) Outside India 10,807 10,807
(ii) Provision for Depreciation
(a) In India 7,069 6,842
(b) Outside India - -
(iii) Net Value of Investments
(a) In India 10,03,190 8,97,456
(b) Outside India 10,807 10,807
2) Movement of Provisions held towards depreciation on
Investments
(i) Opening Balance 6,842 5,033
(ii) Add: Provisions made during the year 852 1,809
(iii) L
ess: Write Off/ Write back of excess provisions (625) -
during the year
(iv) Closing Balance 7,069 6,842
Business Ratios
(` in lakh)
March 31, 2022 March 31, 2021
a) Return on Equity (RoE) 1.2% 0.7%
b) Return on Assets (RoA) 0.8% 0.5%
c) Net Profit per employee * 208 109
* Calculated on Profit after Tax
349
Provisions and Contingencies

(` in lakh)
Break up of ‘Provisions and Contingencies’ shown As at As at
under the Profit and Loss Account March 31, 2022 March 31, 2021
a) Provisions for depreciation on Investment 852 1,809
b) Provision towards NPA - -
c) Provision made towards Income tax 1,985 1,636
d) Other Provision and Contingencies (Provision on Trade - 10
Receivables)
e) Provision for Standard Assets (122) 79
Concentration of NPAs
(` in lakh)
Amount Exposure as
a % of Total
Assets
Total exposure to top five NPA accounts - -
Overseas Assets
Name of Subsidiary Country Total Assets
Tata Capital Pte. Limited Singapore $ 88.1 million
Miscellaneous
a) The Company has not obtained any Registrations/ licenses/ authorisations from other financial
sector regulators.
b) RBI has not levied any penalties on the Company during the year.
NOTE “45”
Disclosure of details as required by RBI/2019-20/88/DOR.NBFC (PD) CC.
No.102/03.10.001/2019-20 dated November 04, 2019 regarding Liquidity Risk
Management Framework for Non-Banking Financial Companies and Core
Investment Companies
(i) Funding Concentration based on significant counterparty (both deposits and borrowings)
(` in lakh)
Sr. Number of Significant Counterparties Amount % of Total % of Total
No deposits Liabilities
1 13 2,97,490 NA 70%
(ii) Top 20 Large Deposits

(` in lakh)
Sr. Counterparty Amount % of total
No deposits
Nil
350
(iii) Top 10 Borrowing (amounts to ` 2,81,490 lakhs and 70% of total borrowings)
(iv) Funding Concentration based on significant instrument/product
(` in lakh)
Sr. Name of the instrument / product Amount % of total
No liabilities
1 CP 5,000 1%
2 NCD 2,85,500 67%
3 CRPS 1,10,992 26%
Total 4,01,492
(v) Stock Ratios

Particulars %
(a)(i) Commercial papers as a % of total public funds 1.25%
(a)(ii) Commercial papers as a % of total liabilities 1.18%
(a)(iii) Commercial papers as a % of total assets 0.44%
(b)(i) Non-convertible debentures (original maturity less than 1 year) as a % of total public funds 0.00%
(b)(ii) Non-convertible debentures (original maturity less than 1 year) as a % of total liabilities 0.00%
(b)(iii) Non-convertible debentures (original maturity less than 1 year) as a % of total assets 0.00%
(c)(i) Other Short-term liabilities as a % of total public funds 29.01%
(c)(ii) Other Short-term liabilities as a % of total Liabilities 27.44%
(c)(i) Other Short-term liabilities as a % of total Assets 10.34%
(vi) The Company’s Board of Directors has the overall responsibility for the establishment and oversight
of the risk management framework. The Board of Directors has established the Finance & Asset
Liability Supervisory Committee (ALCO), which is responsible for developing and monitoring risk
management policies. The Company’s risk management policies are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits. The risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company’s activities.
Footnotes :
1 For the purpose of above disclosure, “Public Funds” i.e. Commercial papers, NCD’s and CRPS
are shown at Face value whereas total assets and total liabilities are shown at Carrying values.
2 Total Liabilities refer to Total outside liabilities i.e. Balance sheet total excluding Share Capital
and Reserves.
3. Other Short term liabilities include Financial Liabilities and non financial liabilities payable
within an year (Excluding CP and NCD Maturity of original tenor less than 1 year).
351
NOTE “46”
Disclosure pursuant to Reserve Bank of India notification DOR (NBFC).CC.PD.

No.109 /22.10.106/2019-20 dated March 13, 2020 pertaining to Asset Classification
as per RBI Norms

(` in lakh)
Asset Asset Gross Loss Allowances Net Provisions Difference
Classification as classification Carrying (Provisions) as Carrying required as between Ind As
per RBI Norms as per Ind Amount as required under Amount per IRACP 109 Provisions
AS 109 per Ind AS Ind AS 109 norms and IRACP norms
A B C=A-B D E=B-D
Performing Assets
Standard Stage 1 and 1,13,057 653 1,12,403 451 202
Stage 2
NOTE “47”
Tata Capital Limited is a Core Investment Company (CIC-ND-SI) and only has investments in and loans
to group companies. Though there is an uncertainty in the environment, given the nature of its business,
it is expected that the impact of the pandemic on the company and its operations will be minimal.
NOTE “48”
The Company has assessed its obligations arising in the normal course of business, proceedings
pending with tax authorities and other contracts including derivative and long term contracts. In
accordance with the provisions of Indian Accounting Standard (Ind AS) - 37 on ‘Provisions, Contingent
Liabilities and Contingent Assets’, the Company recognises a provision for material foreseeable
losses when it has a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. In
cases where the available information indicates that the loss on the contingency is reasonably possible
but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made as contingent
liabilities in the financial statements. The Company does not expect the outcome of these proceedings to
have a materially adverse effect on its financial results.
NOTE “49”
Analytical Ratios as per Ministry of Corporate Affairs (“MCA”) notification dated 24th March 2021:
Ratio Numerator Denominator Current Previous % Reason

Period Period Variance for
variance
(if above
25%)
Capital to risk-weighted Adjusted Risk 61% 64% -5% Not
assets ratio (CRAR) Net worth Weighted Applicable
Assets
Tier I CRAR Not Not Not Not Not Not
Applicable Applicable Applicable Applicable Applicable Applicable
Tier II CRAR Not Not Not Not Not Not
Applicable Applicable Applicable Applicable Applicable Applicable
Liquidity Coverage Not Not Not Not Not Not
Ratio. Applicable Applicable Applicable Applicable Applicable Applicable
352
NOTE “50”
The Company has not advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or other kind of funds) to or in any other person or entity, including foreign entity
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;
The Company has not received any funds (which are material either individually or in the aggregate)
from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
NOTE “51”
The disclosure on the following matters required under Schedule III as amended not being relevant or
applicable in case of the Company, same are not covered:
a) The Company has not traded or invested in crypto currency or virtual currency during the financial
year.
b) No proceedings have been initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
c) The Company has not been declared willful defaulter by any bank or financial institution or
government or any government authority.
d) The Company has not entered into any scheme of arrangement.
e) No registration and/or satisfaction of charges are pending to be filed with ROC.
f) There are no transactions which are not recorded in the books of account which have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.
g) The Company does not have any relationship with struck off companies.
NOTE “52”
The Board of Directors have recommended a final dividend of Re. 0.16 per equity share for the financial
year 2021-22 (resulting in total dividend of Rs.5,626 lakhs), subject to approval of the shareholders in the
forthcoming Annual General Meeting of the Company.
NOTE “53”
Previous year figures have been regrouped/rearranged, where necessary.
Mumbai Compliance &
353
354
TATA CAPITAL LIMITED
Registered Office: 11th Floor, Tower A, Peninsula Business Park,
Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013.
Tel No. +91 22 6606 9000 • www.tatacapital.com

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Index

Impairment on Investments and Financial Instruments decreased to ` 1,083 crore in

Dividend Rate Dividend Amount

5. OVERVIEW OF THE COMPANY, ITS SUBSIDIARIES AND ASSOCIATES

5.2 Private Equity

iii) Tata Capital Innovations Fund (“TCIF”)

iv) Tata Capital Special Situations Fund (“TCSSF”)

5.2.2 Overseas Funds

5.3 Review of Subsidiaries and Associates

i) Tata Capital Financial Services Limited (“TCFSL”)

iii) Tata Cleantech Capital Limited (“TCCL”)

iv) Tata Securities Limited (“Tata Securities”)

vi) Other Subsidiaries

5.3.3 Other Investments:

6. CONSOLIDATED FINANCIAL STATEMENTS

NATURE OF SECURITIES RATING AGENCY RATING

10. INTERNAL FINANCIAL CONTROL

11. INFORMATION TECHNOLOGY SUPPORT

12. DIGITAL PLATFORM & ANALYTICS

13. TATA BUSINESS EXCELLENCE MODEL

14. THE TATA CAPITAL BRAND

15. CORPORATE SOCIAL RESPONSIBILITY

20. NUMBER OF MEETINGS OF THE BOARD

21. EVALUATION OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS

22. POLICY ON APPOINTMENT OF DIRECTORS AND REMUNERATION POLICY OF THE COMPANY

Salient features of the Remuneration Policy, inter alia, includes:

23. KEY MANAGERIAL PERSONNEL

24. DIRECTORS’ RESPONSIBILITY STATEMENT

d) they had prepared the annual accounts on a going concern basis;

25. VIGIL MECHANISM

26. DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

27. AUDIT COMMITTEE

28. STATUTORY AUDITORS

29. ACCOUNTING STANDARDS FOLLOWED BY THE COMPANY

30. EXPLANATION ON STATUTORY AUDITORS’ REPORT

31. SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT

32. INFORMATION ON MATERIAL CHANGES AND COMMITMENTS

33. SIGNIFICANT AND MATERIAL ORDERS

34. RELATED PARTY TRANSACTIONS

(B) Technology absorption:

(C) Foreign Exchange Earnings and Outgo:

36. ANNUAL RETURN

37. TATA CAPITAL LIMITED EMPLOYEE STOCK PURCHASE / OPTION SCHEME

Employee-wise details of options granted, during FY 2021-22, to (Options yet to be exercised)

Name of Eligible Employees Number of Options granted

38. MANAGEMENT DISCUSSION AND ANALYSIS

39. CORPORATE GOVERNANCE REPORT

40. SECRETARIAL STANDARDS

41. GREEN INITIATIVE

For and on behalf of the Board of Directors

Mumbai Saurabh Agrawal

1. Brief outline on CSR Policy of the Company

2. Composition of CSR Committee:

CSR Policy and CSR projects approved by the Board:

6. Average net profit of the company as per section 135(5):

Uttar Pradesh Aligarh

Saurabh Agrawal Farokh N. Subedar

Malvika Sinha Aarthi Subramanian

We further report that:

26. DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

xiii. Outstanding global depository receipts or american depository receipts or warrants or