RFL 2022

Financial Statement
2021-22
Reliance Financial Limited
Independent Auditors’ Report
To the Members of Reliance Financial Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Reliance Financial Limited (“the
Company”), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Cash Flows and the Statement of
Changes in Equity for the year then ended and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information (hereinafter referred to
as “the financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid 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 Indian Accounting
Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2022; and its loss and other
Comprehensive Income, Change in Equity and its Cash Flows for the year ended on that date.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the 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 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 ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report.
The Key Audit Matter How the matter was addressed in our audit
Marked Linked Debentures (MLD)
The Company has non-convertible debentures We carried out following procedures in respect to
(Marked Linked Debentures) of Rs. 6,54,108 Marked Linked Debentures :
thousands as at March 31, 2022. The rate of interest - held discussion with management and obtained
on which is linked to performance of specified indices understanding of valuation process including
over the period of the debentures. The terms and management’s determination and approval of
conditions of the Marked Linked Debentures are assumptions and data inputs.
detailed in note 20 of the financial statements. - evaluate the design and tested operating effectiveness
of controls related to the data considered in the
Further, Marked Linked Debentures is a key number valuation, related calculations and Valuation reports
in the balance sheet and will remain an important provided by management’s external expert.
funding mechanism for continued growth. Therefore,
in our view, Marked Linked Debentures is important Based on our audit procedures, we noted no reportable
to the readers understanding of the financial matters regarding MLD classification and its valuation.
statements. As a result of these items we consider
accounting for Marked Linked Debentures to be a key
audit matter at March 31, 2022.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises the Management Discussion & Analysis, Board’s Report including
Annexure to Board’s Report, but does not include the financial statements and our auditor’s report
thereon. The report containing other information is expected to be made available to us after the date
of this auditor's report.
Our opinion on the financial statements does not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated. When we read the report containing other
information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Responsibilities of management for the financial statements

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 financial statements that give a true and fair
view of the financial position, financial performance, change 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 provision of the Act for
safeguarding the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of the appropriate accounting policies; making judgements 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 financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management and Board of Directors are responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are
also responsible for expressing our opinion on whether the company has adequate internal
financial controls with reference to financial statements in place and the operating effectiveness of
such controls.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
● Conclude on the appropriateness of management and Board of Directors’ use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company
so far as appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (Including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Change in Equity dealt with by this
report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards specified under section 133 of the Act read with relevant rules made thereunder’.
e) On the basis of the written representations received from the directors as on March 31, 2022
taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 2022, from being appointed as a director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure B”.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with
the requirements of section 197(16) of the Act, In our opinion and to the best of our
information and according to the explanations given to us, the Company has not
paid/provided for any remuneration to its directors during the year.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with
Rules 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:
i. The Company has disclosed the impact of pending litigations on its financial position in
its financial statements as referred to in Note no. 34 of the financial statements;
ii. The Company have derivative contracts as maintained in note 5 & 17 and gain/losses on
those contracts as on March 31, 2022 has been recognised in the books of account.
Further, there were no long-term contracts for which there were any material foreseeable
losses;
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company for the year ended March 31, 2022.
iv. (a) The management has represented to us that, to the best of it’s knowledge and belief, no
funds 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
persons or entities, including foreign entity (“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”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented to us that, to the best of it’s knowledge and belief,
no funds have been received by the company from any person(s) or entity(ies),
including foreign entity (“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;
(c) Based on our audit procedure conducted that are considered reasonable and
appropriate in the circumstances, nothing has come to our attention that cause us to
believe that the representation given by the management under paragraph (2) (h) (iv)
(a) & (b) contain any material misstatement.
v. The Company has not declared or paid any dividend during the year.
For Pathak H. D. & Associates LLP

Chartered Accountants
Firm Registration no. 107783W/W100593
Jigar T. Shah
Partner
Membership No.: 161851
UDIN: 22161851AKIFCH9966
Place: Mumbai
Date: April 13, 2022
Annexure A to Auditors’ Report
Referred to in paragraph 1 under ‘Report on other legal and regulatory requirements’ section
of our report in the Independent Auditors’ Report of even date to the members of Reliance
Financial Limited on the financial statements as of and for the year ended March 31, 2022
(i) In respect of its Property Plant and Equipment:
(a) (A) The Company is maintaining proper records showing full particulars, including
quantitative details and situation of its property, plant and equipment, on the basis of
available information except for in some assets where company is in the process of tagging
the assets.
(B) Based on the records examined by us and information and explanation given to us the
Company is maintaining proper records showing full particulars of Intangible Assets.
(b) The Company has a regular programme of physical verification of its property, plant and
equipment, by which all property, plant and equipment are verified in a phased manner over a
period of time. In our opinion, the periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. Pursuant to the program, a
portion of the property, plant and equipment has been physically verified by the Management
during the year and no material discrepancies between the book records and the physical
assets were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us, we report that,
the title deeds of all the immovable properties comprising of a building other than self-
constructed properties are held in the name of the Company.
(d) According to information and explanations given to us and books of accounts and records
examined by us, Company during the year has not revalued its Property, Plant and Equipment
(including Right of Use assets) or intangible assets , hence, the requirements of the said clause
i(d) of paragraph 3 of the Order is not applicable to the Company..
(e) According to information, explanations and representation given to us by the management,no

proceedings have been initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) (a) According to the information and explanations given to us, the Company does not hold any
physical inventories. Thus, the reporting requirements under paragraph 3(ii)(a) of the order
is not applicable to the Company.
(b) As per the information and explanations given to us and books of accounts and records
examined by us, no working capital limits in excess of five crore rupees, in aggregate, from
banks or financial institutions on the basis of security of current assets has been taken by the
Company. Therefore, the reporting requirements under paragraph 3(ii)(b) of the Order is not
applicable to the Company.
(iii) (a) According to information and explanations given to us and books of accounts and records
examined by us, the Company’s principle business is to give loans, hence the reporting
requirements under paragraph 3(iii)(a)(A) & (B) of the Order is not applicable.
(b) In our opinion and according to information and explanations given us and on the basis of our
audit procedures, the terms and conditions of all loans made by the Company are not
prejudicial to Company’s interest. Company has not made any investments or provided any
guarantees or given security and has not granted any advances in the nature of loans during
the year.
(c) According to the books of accounts and records examined by us in respect of the loans, where
the schedule of repayment of principal and payment of interest has been stipulated, the
repayments or receipts are generally regular except for loans given to various parties
amounting to Rs. 41.78 crore on prudence basis, the Company has not provided interest from
April 01, 2020 onwards.
(e) According to information and explanations given to us and books of accounts and records
examined by us, the Company principle business is to give loans. Hence, the reporting
requirements under paragraph 3(iii)(e) of the Order is not applicable.
(f) In our opinion and according to information and explanation given and records examined by
us, the Company has granted loans which are repayable on demand. The details are as
follows:
Rs. In Crore
Particulars All Parties Promoters Related Parties
Aggregate amount of loans/
advances in nature of loans
- Repayable on
61.53 - 8.41
demand (A)
- Agreement does not specify any
terms or period of - - -
repayment (B)
Total (A+B) 61.53 - 8.41
Percentage of loans/ advances in
100% - 13.67%
nature of loans to the total loans
(iv) The Company has not granted any loan or provided any guarantee or security in connection
with any loan taken by parties covered under section 185 of the Act. Therefore, the provisions
of section 185 are not applicable to the Company. The Company is registered as Non Banking
Financial Company with RBI. Thus, the provision of section 186 except sub-section (1) of the
Act is not applicable to the Company. In our opinion and information and explanations given to
us, during the year, the Company has not made any investments through more than two layers
of investment companies as mentioned in sub-section (1) of section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has
not accepted any deposits from the public within the meaning the directives issued by the
Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions
of the Act and the relevant rules framed thereunder. Accordingly, paragraph 3(v) of the Order is
not applicable to the Company.
(vi) According to information & explanations given to us, the Central Government has not
prescribed maintenance of cost records under sub-section (1) of section 148 of the Act. Hence,
the reporting requirements under paragraph 3(vi) of the order is not applicable to the Company.
(vii) Based on the records examined by us and according to the information and explanations given
to us, in respect of statutory dues:
(a) According to the information and explanations given to us and the records of the
Company examined by us, in our opinion, the Company is generally regular in
depositing the undisputed statutory dues including goods and service tax, provident
fund, employees’ state insurance, income-tax, sales tax, service tax, customs duty,
excise duty, value added tax, cess and other material statutory dues as applicable, with
the appropriate authorities. There are no undisputed amounts payable in respect to such
applicable statutory dues outstanding as at March 31, 2022 for a period of six months
from the date they became payable.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no dues of goods and service tax, provident fund,
employees’ state insurance, income-tax, sales tax, service tax, customs duty, excise duty,
value added tax, cess and other material statutory dues as at March 31, 2022 which have
not been deposited on account of a dispute.
(viii) According to the information and explanations given to us and representation given by the
management, there were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961.
(ix) a) In our opinion and according to the information and explanations given and books of
accounts and records examined by us, the Company has not defaulted in repayment of
dues to debentures holders of Market linked debentures. The Company does not have any
borrowings from banks, financial institutions and government.
b) In our opinion, and according to the information and explanations given to us, the
Company has not been declared wilful defaulter by any bank or financial institution or
other lender.
c) In our opinion, and according to the information and explanations given and records
examined by us, the Company does not have any borrowings from banks, financial
institutions and government. Hence, the reporting requirements under paragraph 3(ix)(c)
of the Order is not applicable.
d) In our opinion, and according to the information and explanations given to us, funds raised
on the short-term basis have not been utilized for long term purposes.
e) In our opinion, and according to the information and explanations given to us, the
Company does not have any subsidiaries, associates or joint ventures. Hence, the reporting
requirements under paragraph 3(ix)(e) and (f) of the Order is not applicable.
(x) (a) During the year the Company has not raised money by way of initial public offer or
further public offer (including debt instruments) hence the reporting requirements under
paragraph 3(ix) (a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
as per section 42 and 62 of the Act, hence the reporting requirements under paragraph
3(ix)(b) of the Order is not applicable.
(xi) (a) Based on the audit procedures performed for the purpose of reporting the true and fair
view of the financial statements and as per information and explanations given to us, no
fraud by the Company or on the Company 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 us or by any other auditor in Form ADT-
4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government.
(c) According to the information, explanations and representation given to us by the

management, no whistle-blower complaints have been received during the year by the
Company.
(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)(a), (xii)(b) and (xii)(c) of the Order is not
applicable.
(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
section 177 and section 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.
(xiv) (a) In our opinion, and according to the information and explanations given to us, the company
has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the company issued till date, for the
period under audit.
(xv) According to the information and explanations given to us and based on our examination of
the records of the Company, the Company has not entered into non-cash transactions with
directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable.
(xvi) (a) The Company is registered under section 45-IA of the Reserve Bank of India Act, 1934.
(b) In our opinion, and according to the information and explanations provided to us and on
the basis of our audit procedures, the Company is registered as Non-Banking Financial
under section 45-IA of the Reserve bank of India Act, 1934 and holds a valid certificate
of registration.
(c) In our opinion, and according to the information and explanations provided to us, the
company is not a Core Investment Company (CIC) as defined in the regulations made by
the Reserve Bank of India.
(d) As represented by the management, the Group does not have more than one Core
Investment Company as part of the Group as per the definition of Group contained in the
Core Investment Companies (Reserve Bank) Directions, 2016.
(xvii) In our opinion, and according to the information and explanations provided to us, the
Company has not incurred any cash losses in the financial year and in the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
(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, except for the loss incurred during the year by the Company
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 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) With respect to CSR contribution under section 135 of the Act:
(a) According to the information and explanations given to us and on the basis of our audit
procedures, in respect of other than ongoing projects, there were no unspent amount that were
required to be transferred to a Fund specified in Schedule VII in compliance with second
proviso to sub-section 5 of section 135 of the Act.
(b) According to the information and explanations given to us and on the basis of our audit
procedures, in respect of ongoing projects there were no unspent amount that were required to
be transferred to special account in compliance with provision of sub section 6 of section 135
of the Act.

Jigar T. Shah
Partner
Place: Mumbai
Annexure B to the Independent Auditor’s Report on the financial statements of Reliance
Financial Limited for year ended March 31, 2022
Report on the internal financial controls with reference to financial statements under Clause (i)
of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph 2(f) under ‘Report on other legal and regulatory requirements’ section of
our report of even date) to the members of Reliance Financial Limited for the year ended March 31,
2022)
We have audited the Internal Financial Controls with reference to financial statements of Reliance
Financial Limited (hereinafter referred to as “the Company”) as of March 31, 2022 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management and Board of Directors are responsible for establishing and maintaining
internal financial controls based on the internal financial controls with reference to financial
statements 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
(‘Guidance Note’) issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to company’s policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013 (“the Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls with reference
to financial statements based on our audit conducted in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute
of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of
the Act, to the extent applicable to an audit of internal financial controls with reference to standalone
financial statements.,. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls with reference to financial statements was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system with reference to financial statements and their operating effectiveness. Our
audit of internal financial controls with reference to financial statements included obtaining an
understanding of internal financial controls with reference to 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 judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Company’s internal financial controls system with reference to financial
statements.
Meaning of Internal Financial controls with Reference to Financial Statements
A company's internal financial controls with reference to 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 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 financial
statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorization of management
and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
Because of the inherent limitations of internal financial controls with reference to 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 financial statements to future periods are
subject to the risk that the internal financial control with reference to financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us the
Company has, in all material respects, an adequate internal financial controls system with reference to
financial statements and such internal financial controls with reference to financial statements were
operating effectively as at March 31, 2022, based on the internal control with reference to financial
statements 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.

Jigar T. Shah
Partner
Place: Mumbai
Balance Sheet as at March 31, 2022
(
Note
Particulars As at March 31, 2022 As at March 31, 2021
No.
ASSETS
Financial Assets
(a) Cash and cash equivalents 3 3,05,632 18,628
(b) Bank Balance other than (a) above 4 2,00,603 2,60,303
(c) Derivative financial instruments 5 239 13,432
(d) Receivables
(i) Trade receivables 6 - -
(ii) Other receivables
(e) Loans 7 2,86,765 4,50,920
(f) Investments 8 4,06,999 5,23,435
(g) Other Financial assets 9 5,37,033 4,38,619
Non-financial Assets
(a) Inventories 10 41,607 49,814
(b) Current tax assets (net) 11 25,156 27,023
(c) Deferred tax assets (net) 12 1,07,909 1,07,909
(d) Investment property 13 2,138 2,180
(e) Property, plant and equipment 14 1,169 2,311
(f) Goodwill 15 59,327 59,327
(g) Other intangible assets 15 5,045 6,919
(h) Other non-financial assets 16 536 29,319
Total Assets 19,80,158 19,90,139
LIABILITIES AND EQUITY

LIABILITIES
Financial Liabilities
(a) Derivative financial instruments 17 21 14,988
(b) Payables
Trade Payables 18
(i) total outstanding dues of micro enterprises and small
enterprises - -
(ii) total outstanding dues of creditors other than micro
757 283
enterprises and small enterprises
Other payables
(i) total outstanding dues of micro enterprises and small
enterprises - -
(ii) total outstanding dues of creditors other than micro
enterprises and small enterprises - -
(c) Debt securities 19 6,54,109 6,36,254
(d) Subordinated liabilities 20 1,61,182 1,61,182
(e) Other financial libilities 21 1,48,625 96,420
Non-Financial Liabilities
(a) Provisions 22 3,578 5,609
(b) Other non-financial liabilities 23 62,455 23,537
EQUITY
(a) Equity share capital 24 2,41,579 2,41,579
(b) Other equity 25 7,07,852 8,10,287
Total Liabilities and Equity 19,80,158 19,90,139
Significant accounting policies and 1 to 51

notes to the financial statement
The accompanying notes form an integral part of the financial statements.
As per our attached report of even date
For Pathak H. D. & Associates LLP For and on behalf of the Board of Directors
Firm registration No. 107783W/W100593
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Jigar T. Shah Lav Chaturvedi Homai Daruwalla
Partner Director Director
Membership No.: 161851 DIN : 02859336 DIN : 00365880
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Ashish Jagetiya Tanvi Salunkhe
Chief Financial Officer Company Secretary
Place : Mumbai M.no. A57355
Statement of Profit and Loss for the year ended March 31, 2022
Note
Particulars Year ended March 31, 2022 Year ended March 31, 2021
No.
A Revenue from operations

Interest income 26 66,810 65,923
Fees, Commission & Other Operating Income 27 69,493 13,001
Net gain on fair value changes 28 1,73,593 40,427
Total Revenue from operations 3,09,896 1,19,351
B Other Income 29 3,047 28,971
C Total Income (A + B) 3,12,943 1,48,322
Expenses
Finance cost 30 11,653 (82,959)
Fees and commission expense 31 5,338 284
Employee benefits expenses 32 1,44,884 92,660
Depreciation and amortization 2,812 2,932
Others expenses 33 2,58,423 1,79,655
D Total Expenses 4,23,110 1,92,572
(I) Profit/(Loss) before exceptional items and tax (C-D) (1,10,167) (44,250)
(II ) Exceptional items
(III ) Profit/(Loss) before tax (I -II ) (1,10,167) (44,250)
(IV) Tax Expense:
(1) Current Tax 1,480 1,624
(2) Deferred Tax - (49,328)
(3) Taxes of earlier years (9,212) (2,682)
(V) Profit/(Loss) for the year (III-IV) (1,02,435) 6,136
(VI) Other Comprehensive Income/(loss)
Items that will not be reclassified to profit or loss

Remeasurement of post employment retirement benefit 4 (510)
Tax on above (1) 128
Other Comprehensive Income / (loss) for the year 3 (382)
(VII) Total Comprehensive Income/ ( loss) for the year (1,02,432) 5,754
Earnings per equity share (Amount in ) 38

Basic (Rs.) 38 (4.24) 0.25
Diluted (Rs.) 38 (4.24) 0.25
Significant accounting policies and 1 to 51

notes to the financial statement 0
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Statement of Cash Flow for the year ended March 31, 2022
Particulars Year ended March 31, 2022 Year ended March 31, 2021
A. CASH FLOW FROM OPERATING ACTIVITIES :
Profit/(Loss) before tax: (1,10,167) (44,250)
Adjustments :
Depreciation, amortisation and impairment 2,812 2,932
Provision for Gratuity 812 789
Provision for doubtful debts & other receivable 2,41,281 1,50,242
Excess Provision written back (90) (28,861)
Loss on sale\discardment of property, plant and equipment 245 -
Interest on preference shares 18,486 20,219
Finance Cost (6,833) (1,03,178)
Interest on income tax refund (2,957) (110)
Accrued interest on long term investments - (9)
Profit on sale of mutual funds (18,980) (19,716)
Interest on fixed deposit (18,174) (22,080)
Interest on bond (2,922) (6,723)
Net gain/ (loss) on fair value changes on preference shares (14,630) (13,991)
Operating profit before working capital changes 88,883 (64,736)
Adjustments for (increase)/ decrease in operating assets:
Inventories 11,130 4,871
Trade receivables - -
Loans 22,878 90,561
Other financial assets (1,96,589) (3,68,792)
Other non-financial assets 28,783 4,501
Adjustments for increase / (decrease) in operating liabilities:

Trade payables 474 (45,943)
Provisions (2,848) (1,291)
Other financial Liabilities 33,808 -
Other non-financial liabilities 38,919 (18,124)
Cash generated from / (used in) operations 25,438 (3,98,953)
Less : Income taxes paid (net of refunds) 12,562 (8,257)
Net cash inflow / (outflow) from operating activities 38,000 (4,07,210)
B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchases of Investment (Mutual fund) (2,00,000) (7,22,923)
Sale of investments 3,50,046 9,68,119
(Investment)/ redemption of Fixed deposit 59,700 2,98,984
Interest received on fixed deposits 16,345 22,181
Net cash inflow / (outflow) from investing activities 2,26,091 5,66,361
C. CASH FLOW FROM FINANCING ACTIVITIES :

Repayment of Market link debenture (net) (83,320) (5,30,571)
Proceeds from issue/redemption of non-convertible debentures (net) - 62,000
Interest paid (298) (571)
Settlement on derivative financial instruments 1,06,531 19,684
Net cash inflow / (outflow) from financing activities 22,913 (4,49,458)
NET INCREASE/(DECREASE) IN CASH AND BANK BALANCES 2,87,004 (2,90,307)

Add : Cash and cash equivalents at beginning of the year 18,628 3,08,935
CASH AND CASH EQUIVALENTS AS AT THE END OF THE YEAR 3,05,632 18,628
Cash and cash equivalents comprise

Balance with scheduled banks
-in current accounts 3,05,632 18,628
-in cheque in hand - -
Total cash and cash equivalents 3,05,632 18,628
Statement of Cash Flow for the year ended March 31, 2022
Note :
1. Net debt reconciliation
Cash and cash equivalent 3,05,632 18,628

Borrowings (1,61,182) (1,61,182)
Debt securities (6,54,109) (6,36,254)
Net debt (5,09,659) (7,78,808)
Cash and cash

Borrowings Debt securities Total
Particulars equivalent
Net debt as at March 31, 2020 3,08,935 (1,61,182) (10,14,372) (8,66,619)
Cash flows (2,90,307) 20,219 4,45,900 1,75,812
Interest expense - (20,219) (90,454) (1,10,673)
Interest paid - - 22,672 22,672
Net debt as at March 31, 2021 18,628 (1,61,182) (6,36,254) (7,78,808)
Cash flows 2,87,004 18,486 83,320 3,88,810
Interest expense - (18,486) (1,01,174) (1,19,661)
Interest paid - - - -
Net debt as at March 31, 2022 3,05,632 (1,61,182) (6,54,109) (5,09,659)
2 The above Statement of Cash Flows has been prepared under the Indirect method as set out in IND AS - 7 on Statement of Cash Flows notified
under section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015], as amended.
3 Figures in brackets indicate cash outflow.
4 Figures of previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
The accompanying notes form an integral part of the financial statements
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Statement of changes in equity for the year ended March 31, 2022
A Equity share capital

Particulars Number Amount
As at March 31, 2020 2,41,57,897 2,41,579
Change in equity share capital due to prior period error - -
Restated balance as at March 31,2020 - -
Change in equity share capital during the year - -
As at March 31, 2021 2,41,57,897 2,41,579
Change in equity share capital due to prior period error - -
Restated balance as at March 31,2021 - -
Change in equity share capital during the year - -
As at March 31, 2022 2,41,57,897 2,41,579
B Other equity
Reserves and surplus Other
Particulars Securities Statutory reserve Retained comprehensive Total other equity
premium fund earnings income
As at March 31, 2020 3,68,421 1,17,695 3,19,200 (783) 8,04,533
Change in accounting policy/prior period errors - - - - -
Restated balance as at March 31,2020 - - - - -
Profit for the year - - 6,136 - 6,136
Other comprehensive income /(loss) - - - (382) (382)
Total comprehensive income for the year - - 6,136 (382) 5,754
Dividends paid - - - - -
Dividend distribution tax - - - - -
Transfers to Statutory reserve fund - 1,227 (1,227) - -
As at March 31, 2021 3,68,421 1,18,922 3,24,109 (1,165) 8,10,287
Change in accounting policy/prior period errors
Restated balance as at March 31,2021
Profit/(Loss) for the year - - (1,02,435) - (1,02,435)
Other comprehensive income - - - 3 3
Total comprehensive income for the year - - (1,02,435) 3 (1,02,432)
Dividends paid - - - - -
Dividend distribution tax - - - - -
Transfers to Statutory reserve fund - - - - -
As at March 31, 2022 3,68,421 1,18,922 2,21,674 (1,162) 7,07,854
The accompanying notes form an integral part of the financial statements
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Place : Mumbai Chief Financial Officer Company Secretary
Date: April 13, 2022 M.no. A57355
Financial statements for the year ended March 31, 2022
1 Company information
Reliance Financial Limited was incorporated on August 26, 2005 . The Company is licensed by the Reserve Bank of India to act as a Non-
banking financial company. The Regd. Office of the company is 11th Floor, R - Tech IT Park, Nirlon Compound, Western Express Highway,
Goregaon (East), Mumbai - 400063.
These financial statement of the Company for the year ended March 31, 2022 were authorised for issue by the board of directors on April
13, 2022. Pursuant to the provision of the section of the Companies Act, 2013 (the ‘Act’) the Central Government, Income tax authorities,
Securities and Exchange Board of India, other statutory regulatory body and under section 131 of the Act, the board of directors of the
Company have powers to amend / re-open the standalone financial statements approved by the board / adopted by the members of the
Company.
2 Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
2.01 Basis of preparation

(i) Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting standards (Ind AS) notified under section 133 of
the Companies Act, 2013 (‘the Act’) [Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of
the Act, to the extent notified and applicable as well as applicable guidance note and pronouncements of the Institute of Chartered
Accountants of India (ICAI).
(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:
• Certain financial assets and liabilities (including derivatives instruments) are measured at fair value;
• Assets held for sale – measured at fair value less cost to sell;
• Defined benefit plans – plan assets measured at fair value.
2.02 Financial instruments

Initial recognition and measurement
Financial assets and financial liabilities are recognized when the entity becomes a party to the contractual provisions of the instrument.
Regular way purchases and sales of financial assets are recognized on trade-date, the date on which the Company commits to purchase or
sell the asset.
At initial recognition, the Company measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial
asset or financial liability not at fair value through profit or loss, transaction costs that are incremental and directly attributable to the
acquisition or issue of the financial asset or financial liability, such as fees and commissions. Transaction costs of financial assets and
financial liabilities carried at fair value through profit or loss are expensed in profit or loss.
When the fair value of financial assets and liabilities differs from the transaction price on initial recognition, the entity recognizes the
difference as follows:
(a) When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) or based on a
valuation technique that uses only data from observable markets, the difference is recognized as a gain or loss.
(b) In all other cases, the difference is deferred and the timing of recognition of deferred day one profit or loss is determined individually. It
is either amortized over the life of the instrument, deferred until the instrument’s fair value can be determined using market observable
inputs, or realized through settlement.
When the Company revises the estimates of future cash flows, the carrying amount of the respective financial assets or financial liability is
adjusted to reflect the new estimate discounted using the original effective interest rate. Any changes are recognized in profit or loss.
2.03 Financial assets

(i) Classification and subsequent measurement
The Company has applied Ind AS 109 and classifies its financial assets in the following measurement categories:
• Fair value through profit or loss (FVPL);
• Fair value through other comprehensive income (FVOCI); or
• Amortised cost
The classification requirements for debt and equity instruments are described below:
Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective, such as loans,
government and corporate bonds and trade receivables.
Classification and subsequent measurement of debt instruments depend on:
(i) the Company’s business model for managing the asset; and
(ii) the cash flow characteristics of the asset.
Based on these factors, the Company classifies its debt instruments into one of the following three measurement categories:
Amortised cost: Assets that are held for collection of contractual Cash flows where those Cash flows represent solely payments of principal
and interest (‘SPPI’), and that are not designated at FVPL, are measured at amortized cost. The carrying amount of these Assets is adjusted
by any expected credit loss allowance recognized and measured as described in note 44. Interest income from these financial Assets is
recognized using The effective interest rate method.
Fair value through other comprehensive income: Financial assets that are held for collection of contractual cash flows and for selling the
assets, where the assets’ cash flows represent solely payments of principal and interest, and that are not designated at FVPL, are measured
at fair value through other comprehensive income. Movements in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses on the instrument’s amortized cost which are
recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified
from equity to profit or loss. Interest income from these financial assets is included in ‘Interest income’ using the effective interest rate
method.
Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit
or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging
relationship is recognized in profit or loss in the period in which it arises, unless it arises from debt instruments that were designated at fair
value or which are not held for trading. Interest income from these financial assets is included in ‘Interest income’ using the effective
interest rate method.
Fair value option for financial assets: The Company may also irrevocably designate financial assets at fair value through profit or loss if doing
so significantly reduces or eliminates an accounting mismatch created by assets and liabilities being measured on different bases.
Business model: The business model reflects how the Company manages the assets in order to generate cash flows. That is, whether the
Company’s objective is solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash
flows arising from the sale of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes), then the financial
assets are classified as part of ‘other’ business model and measured at FVPL. Factors considered by the Company in determining the
business model for a Company of assets include past experience on how the cash flows for these assets were collected, how the asset’s
performance is evaluated and reported to key management personnel, how risks are assessed and managed and how managers are
compensated. Securities held for trading are held principally for the purpose of selling in the near term or are part of a portfolio of financial
instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. These
securities are classified in the ‘other’ business model and measured at FVPL.
SPPI: Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the Company
assesses whether the financial instruments’ cash flows represent solely payments of principal and interest (the ‘SPPI test’). In making this
assessment, the Company considers whether the contractual cash flows are consistent with a basic lending arrangement i.e. interest
includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a
basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending
arrangement, the related financial asset is classified and measured at fair value through profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment
of principal and interest.
The Company reclassifies debt investments when and only when its business model for managing those assets changes. The reclassification
takes place from the start of the first reporting period following the change. Such changes are expected to be very infrequent and none
occurred during the period.
Interest income
Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets, except for:
a) Purchased financial assets, for which the original credit-adjusted effective interest rate is applied to the amortized cost of the financial
asset.
b) Financial assets that have subsequently become credit-impaired (or ‘stage 3’), for which interest revenue is calculated by applying the
effective interest rate to their amortized cost (i.e. net of the expected credit loss provision).
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial asset or financial liability to the gross carrying amount of a financial asset (i.e. its amortized cost before any impairment allowance)
or to the amortized cost of a financial liability. The calculation does not consider expected credit losses and includes transaction costs,
premiums or discounts and fees and points paid or received that are integral to the effective interest rate, such as origination fees.
Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer’s perspective; that is, instruments that do not contain
a contractual obligation to pay and that evidence a residual interest in the issuer’s net assets.
The Company subsequently measures all equity investments at fair value.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in net gain/loss on fair value changes in the
statement of profit or loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.
Gains and losses on equity investments at FVPL are included in the statement of profit or loss.
(ii) Impairment
The Company assesses on a forward looking basis the expected credit losses (ECL) associated with its debt instruments carried at amortized
cost and FVOCI. The Company recognizes a loss allowance for such losses at each reporting date. The measurement of ECL reflects:
• An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
• The time value of money; and
• Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions.
The measurement of the ECL allowance is an area that requires the use of complex models and significant assumptions about future
economic conditions and credit behavior (e.g. the likelihood of customers defaulting and the resulting losses).
Explanation of the inputs, assumptions and estimation techniques used in measuring ECL is further detailed in note 44, which also sets out
key sensitivities of the ECL to changes in these elements.
A number of significant judgements are also required in applying the accounting requirements for measuring ECL detailed information
about the judgements and estimates made by the Company in the above areas is set out in note 44.
(iii) Modification of loans

The Company sometimes renegotiates or otherwise modifies the contractual cash flows of loans to customers. When this happens, the
Company assesses whether or not the new terms are substantially different to the original terms. The Company does this by considering,
among others, the following factors:
• If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the borrower is
expected to be able to pay.
• Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affects the risk profile of
the loan.
• Significant extension of the loan term when the borrower is not in financial difficulty.
• Significant change in the interest rate.
• Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.
If the terms are substantially different, the Company de-recognizes the original financial asset and recognizes a ‘new’ asset at fair value and
recalculates a new effective interest rate for the asset. The date of renegotiation is consequently considered to be the date of initial
recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has
occurred. However, the Company also assesses whether the new financial asset recognized is deemed to be credit-impaired at initial
recognition, especially in circumstances where the renegotiation was driven by the debtor being unable to make the originally agreed
payments. Differences in the carrying amount are also recognized in profit or loss as a gain or loss on de-recognition.
If the terms are not substantially different, the renegotiation or modification does not result in de-recognition, and the Company
recalculates the gross carrying amount based on the revised cash flows of the financial asset and recognizes a modification gain or loss in
the statement of profit or loss. The new gross carrying amount is recalculated by discounting the modified cash flows at the original
effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The impact of modifications of financial assets on the expected credit loss calculation is discussed in note 44.
(iv) Derecognition other than on a modification

Financial assets, or a portion thereof, are derecognized when the contractual rights to receive the cash flows from the assets have expired,
or when they have been transferred and either (i) the Company transfers substantially all the risks and rewards of ownership, or (ii) the
Company neither transfers nor retains substantially all the risks and rewards of ownership and the Company has not retained control. The
Company directly reduces the gross carrying amount of a financial asset when there is no reasonable expectation of recovering a financial
asset in its entirety or a portion thereof.
2.04 Financial liabilities

(i) Classification and subsequent measurement
In both the current and prior period, financial liabilities are classified as subsequently measured at amortized cost, except for:
• Financial liabilities at fair value through profit or loss: this classification is applied to derivatives, financial liabilities held for trading and
• Financial liabilities arising from the transfer of financial assets which did not qualify for de-recognition, whereby a financial liability is
recognized for the consideration received for the transfer. In subsequent periods, the Company recognizes any expense incurred on the
financial liability.
Market linked debentures (MLDs)

The Company has issued certain non-convertible debentures, the rate of interest on which is linked to performance of specified indices over
the period of the debentures. The Company has opted to designate the entire hybrid contract at FVTPL as the embedded derivative
significantly modifies the cash flows that otherwise would be required by the contract. Further, the embedded derivative is not closely
related to the financial liability host contract. The Company hedges its interest rate risk on MLD by taking positions in future & options
based on specified indices. Any gain / loss on these hedge positions is recognized in Statement of Profit and Loss.
(ii) Derecognition
Financial liabilities are derecognized when they are extinguished i.e. when the obligation specified in the contract is discharged, cancelled or
expires.
The exchange between the Company and its original lenders of debt instruments with substantially different terms, as well as substantial
modifications of the terms of existing financial liabilities, are accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability. The terms are substantially different if the discounted present value of the cash flows under the new
terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different
from the discounted present value of the remaining cash flows of the original financial liability. In addition, other qualitative factors, such as
the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the
instrument and change in covenants are also taken into consideration. If an exchange of debt instruments or modification of terms is
accounted for as an extinguishment, any costs or fees incurred are recognized as part of the gain or loss on the extinguishment. If the
exchange or modification is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability
and are amortized over the remaining term of the modified liability.
2.05 Derivatives and hedging activities

Derivatives are initially recognized at fair value on the date on which the derivative contract is entered into and are subsequently re-
measured at fair value. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
The method of recognizing the resulting fair value gain or loss depends on whether the derivative is designated and qualifies as a hedging
instrument, and if so, the nature of the item being hedged.
(i) Derivatives that are not designated as hedges :

The Company enters into certain derivative contracts to hedge risks which are not designated as hedges. Such contracts are accounted for
at fair value through profit or loss.
2.06 Revenue Recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as) the Company satisfies a
performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the
customer obtains control of that asset.
When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding
estimates of variable consideration) that is allocated to that performance obligation.
The Company applies the five-step approach for recognition of revenue:
• Identification of contract(s) with customers;
• Identification of the separate performance obligations in the contract;
• Determination of transaction price;
• Allocation of transaction price to the separate performance obligations; and
• Recognition of revenue when (or as) each performance obligation is satisfied.
(i) Interest income

Interest income is recognized using the effective interest rate (refer note 2.03)
(ii) Dividend income

Dividend income is recognized in the statement of profit or loss on the date that the Company's right to receive payment is established, it is
probable that the economic benefits associated with the dividend will flow to the entity and the amount of dividend can be reliably
measured. This is generally when the shareholders approve the dividend.
For all equity instruments (in the nature of equity) measured at amortized cost, interest income (refer note 26) is recorded using the
effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial
instrument. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument. Interest income is included in net gain on fair value changes in the statement of profit and loss.
(iii) Processing fees

Processing fees on loan disbursement is amortized over the life of loan using the "effective interest rate" method.
(iv) Delay payment interest

Delay payment interest is recognised on an accrual basis.
(v) Income from trading in derivatives

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into, and are subsequently re-measured to
their fair value at the end of each reporting period. The resulting gain or loss is recognized in the statement of profit and loss immediately.
Other payments made in connection with the acquisition of derivatives are recognized in the statement of profit and loss.
2.07 Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income
tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused
tax losses.
Current tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period
in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate
on the basis of amounts expected to be paid to the tax authorities.
Deferred tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the
initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax
loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is
settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
2.08 Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a
straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to
compensate for the lessor’s expected inflationary cost increases.
2.09 Impairment of assets

Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.
2.10 Cash and cash equivalents

Cash and cash equivalents includes cash at banks and on hand, cheques on hand, short-term deposits with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
2.11 Property, plant and equipments

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only 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. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged
to statement of profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives & residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives
or, in the case of certain leased furniture, fittings and equipment, the shorter lease term as follows:
The estimated useful lives for the different types of assets are:
Asset Useful life
Office Equipments 5 years
Furniture and Fixtures 10 years
Data Processing Equipments
(i) Servers and networks 6 years
(ii) End user devices ( desktops, laptops, etc. ) 3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized in the statement of profit or
loss.
Asset costing less than 5,000 are fully depreciated at the time of acquisition.
2.12 Intangible assets

Intangible assets are recognized where it is probable that the future economic benefit attributable to the assets will flow to the Company
and its cost can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortization and impairment, if
any.
Goodwill on acquisition of the subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually
or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed
under intangible assets under development. The Company amortizes intangible assets on a straight-line basis over the useful lives of the
assets commencing from the month in which the asset is first put to use. The Company provides pro-rata depreciation from the day the
asset is put to use.
The estimated useful lives for the different types of assets are:
Asset Useful life
Software 6 years
2.13 Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as
investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable
borrowing costs. Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic
benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part
is de-recognized.
Investment properties are depreciated using the straight-line method over their estimated useful lives. The useful life has been considered
as 60 years as prescribed in Part C of Schedule II of the Company Act, 2013.
2.14 Off-setting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to
offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the
event of default, insolvency or bankruptcy of the Company or the counterparty.
2.15 Inventories
Financial instruments held as inventory are measured at fair value through profit or loss.
2.16 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in which they are incurred.
2.17 Provisions, Contingent Liabilities and Contingent Asset

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at
the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is
recognized as interest expense.
Contingent liability is a possible obligation that arises from past events and whose existence 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 a present obligation that arises
from past events. Contingent liability is not recognised as 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 reliablity. Contingent Liabilities are not
recognised but are disclosed in the financial statements.
A contingent asset is a possible asset that arises from past events and whose existence 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. A contingent asset is not recognised
however disclosed in the financial statements, if any.
2.18 Employee benefits
(i) Short-term obligations
Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period
and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Post-employment obligations

The Company operates the following post-employment schemes:
(a) Gratuity; and
(b) Provident fund.
Defined Benefits plans

Gratuity Obligations
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the
related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of
plan assets. This cost is included in employee benefit expense in the statement of profit or loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in
which they occur, directly in other comprehensive income. They are included in other equity in the statement of changes in equity and in
the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately
in profit or loss as past service cost.
Defined contribution plans

Provident fund
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no
further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and
the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the
extent that a cash refund or a reduction in the future payments is available.
(iii) Other long-term employee benefit obligations

Leave encashment
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees
render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services
provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the
appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-
measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in the statement of profit or loss.
2.19 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on
or before the end of the reporting period but not distributed at the end of the reporting period.
For all equity instruments (in the nature of equity) measured at amortized cost, interest expenses (refer note 30) is recorded using the
effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments over the expected life of the financial
instrument. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument. Interest expense is included in finance cost in the statement of profit and loss.
2.20 Earnings per share
(a) Basic earnings per share
Earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity
shares outstanding during the financial Year, adjusted for bonus element in equity shares issued during the Year (Note 38).
(b) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income
tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of
additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
2.21 Foreign currency translations

Initial recognition
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the spot exchange rate
between the functional currency and the foreign currency at the date of the transaction.
Subsequent recognition
As at the reporting date, foreign currency monetary items are translated using the closing rate and non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction.
Exchange gains and losses arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were translated on initial recognition during the year or in previous financial statements are recognised in statement of profit or
loss in the year in which they arise.
2.22 Functional and presentation currency

The financial statements are presented in Indian Rupees and all amounts disclosed in the financial statements and notes have been rounded
off upto the nearest thousand and zero decimals (as per the requirement of Schedule III) unless otherwise stated.
2.23 Critical accounting estimates and judgements
The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might
have an effect on their recognition and measurement in the balance sheet and statement of profit or loss. The actual amounts realised may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Information about significant areas of estimation/uncertainty and judgements in applying accounting policies that have the most significant
effect on the consolidated financial statements are as follows:
(a) Estimation of deferred tax -Note 36.3
(b) Estimation of defined benefit obligation-Note 37
(c) Measurement of fair values and Expected Credit Loss (ECL)-Note 44
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting
2.24 Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards)
Amendment Rules, 2022, applicable from April 1, 2022, in “Ind AS 103, IndAs 16, Ind AS 37, Ind AS 109 & Ind AS 116.
Note 3 - Cash and cash equivalents

Cash and cash equivalents

Balance with banks in current accounts 3,05,632 18,628
Total 3,05,632 18,628
Note 4 - Bank balance other than cash and cash equivalents
Fixed deposit accounts
- Under lien (note a) 603 603

- Under margin (note b) 1,50,000 2,09,700
- Under lien for OD (note c) 50,000 50,000
Total 2,00,603 2,60,303
In respect of balances with banks in fixed deposit accounts above includes:

(a) Rs. 603 thousands (March 31, 2021 - Rs. 603 thousands) kept as deposit with Sales Tax Authority of which Rs. 350 thousands
(March 31, 2021 - Rs. 350 thousands) are utilised for issuing Bank guarantees.
(b) Rs. 15,00,00 thousands (March 31, 2021 - Rs. 20,97,00 thousands) placed as margin favouring National Securities Clearing
Corporation Limited.
(c) Rs. 50,000 thousands (March 31, 2021 - Rs. 50,000 thousands) are liened against bank overdraft facility.
Note 5 - Derivative financial instruments
The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges
that either meet the hedge accounting requirements or hedges that are economic hedges, but the Company has elected not to apply
hedge accounting requirements.
The table below shows the fair values of derivative financial instruments recorded as assets 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.
Particulars Notional value Fair value of assets

As at March 31,2022
Equity derivatives 2,63,955 239
2,63,955 239
Particulars Notional value Fair value of assets
As at March 31, 2021

Equity derivatives 6,07,215 13,432
6,07,215 13,432
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are Market linked debentures.
Note 6 - Trade receivables

(a) Secured, considered good; - -

Less : Impairment loss allowance - -
(b) Unsecured considered good; and - -

(c) Other receivables - credit impaired 575 575

Less : Impairment loss allowance (575) (575)
Total - -
Note 7 - Loans
Particulars % As at March 31, 2022 % As at March 31, 2021
At amortised cost
Loans against securities 10% 70,675 10% 72,803
Loans repayable on demand 77% 5,31,150 69% 4,90,500
Loans to related parties 12% 84,100 21% 1,45,500
Total (Gross) 6,85,925 7,08,803
Less : Impairment loss allowance (3,99,160) (2,57,883)
Total (Net) 2,86,765 4,50,920
Of above
Secured by shares 70,675 72,803
Unsecured 6,15,250 6,36,000
Total (Gross) 6,85,925 7,08,803
Total (Net) 2,86,765 4,50,920
Related parties 84,100 1,45,500

Individual 70,627 72,755
Company 5,31,197 4,90,547
Total (Gross) 6,85,925 7,08,803
Total (Net) (C) 2,86,765 4,50,920
(I) Loan In india

(i) Public Sector - -
(ii) Others 6,85,925 7,08,803
Total (Gross) (D) (I) 6,85,925 7,08,803
Total (Net) (D) (I) 2,86,765 4,50,920
(II) Loan outside India - -

Total (Net) (D) (II) - -
Total (D) (I) and (D) (II) 2,86,765 4,50,920
Note : During the year the Company has accounted for expected credit loss on ICD's aggregating to Rs. 1,41,277 thousand (as on
March 31, 2021 - Rs. 1,50,242 thousand).
Financial statements for the year ended March 31, 2022 in thousands)
Note 7 - Loans
7.1 Credit quality of assets
The table below shows the credit quality and the maximum exposure to credit risk based on the Company’s internal credit rating system and year-end stage classification. The
amounts presented are gross of impairment allowances. Details of the Company’s internal grading system and policies on whether ECL allowances are calculated on an individual or
collective basis are disclosed in note 44.
As at March 31, 2022 As at March 31, 2021

Internal rating grade Total Total
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Performing
High grade - - - - - - - -
Standard grade 2,81,550 2,81,550 4,50,920 - - 4,50,920
Sub-standard grade - - - - - - - -
Past due but not impaired - - - - - - - -
Non- performing
Individually impaired - - 4,04,375 4,04,375 - - 2,57,883 2,57,883
Total 2,81,550 - 4,04,375 6,85,925 4,50,920 - 2,57,883 7,08,803
Analysis of changes in the gross carrying amount of loans

Particulars Total Total
Opening balance 4,50,920 - 2,57,883 7,08,803 6,97,747 - 72,755 7,70,503
New assets originated or purchased - - - - - 1,85,128 1,85,128
Assets derecognised or repaid (net) - - (22,878) (22,878) (2,46,827) - - (2,46,827)
Transfers to Stage 1 - - - - - - - -
Transfers to Stage 3 (1,69,370) - 1,69,370 - - - - -
Closing balance 2,81,550 - 4,04,375 6,85,925 4,50,920 - 2,57,883 7,08,803
Reconciliation of ECL balance

Opening balance 25,230 - 2,32,653 2,57,883 34,885 - - 34,885
New assets originated or purchased 2,925 - 1,38,352 1,41,277 - - 2,32,653 2,32,653
Assets derecognised or repaid - - - - (9,655) - - (9,655)
Closing balance 28,155 - 3,71,005 3,99,160 25,230 - 2,32,653 2,57,883
The increase in the ECL balance is due to the increase in the gross size of the portfolio as a result of new loan assets originated during the year.
Note 8 - Investments
Particulars At Fair value
Amortised cost Total
Through OCI Through P/L Subtotal
Mutual funds (quoted) - - 73,474 73,474 73,474

National savings certificate (quoted) 20 - - - 20
Preference Shares (unquoted) - - 3,33,505 3,33,505 3,33,505
Total – Gross (A) 20 - 4,06,979 4,06,979 4,06,999
(i) Overseas Investments - - - - -

(ii) Investments in India 20 - 4,06,979 4,06,979 4,06,999
Total (B) 20 - 4,06,979 4,06,979 4,06,999
Less: Allowance for Impairment loss (C) - - - - -

Total – Net D= (A)- ( C) 20 - 4,06,979 4,06,979 4,06,999

Particulars At Fair value
Amortised cost Total
Through OCI Through P/L Subtotal
Mutual funds (quoted) - - 2,04,540 2,04,540 2,04,540

National savings certificate (quoted) 20 - - - 20
Preference Shares (unquoted) - - 3,18,875 3,18,875 3,18,875
Total – Gross (A) 20 - 5,23,415 5,23,415 5,23,435
(i) Overseas Investments - - - - -

(ii) Investments in India 20 - 5,23,415 5,23,415 5,23,435
Total (B) 20 - 5,23,415 5,23,415 5,23,435
Less: Allowance for Impairment loss (C) - - - - -

Total – Net D= (A)- ( C) 20 - 5,23,415 5,23,415 5,23,435
Financial statements for the year ended March 31, 2022 ( in thousands)
Note 8 : Investment (Continued)

(i) Mutual Funds :
Market value of investments in quoted mutual funds represents the repurchase price of the units issued by the mutual funds. These units of mutual
funds are invested in growth scheme of various funds.
As at As at
Mutual funds Units Units
March 31, 2022 March 31, 2021
Franklin India Income Opportunities Fund - Direct - Growth - - 33,04,989 80,516

Franklin India Credit Risk Fund - Direct - Growth 3,00,109 7,209 28,87,132 63,653
Kotak Medium Term Fund - Direct Growth 0 0 0 0
Aditya Birla Sun Life Medium Term Plan - Growth - Direct Plan 21,01,270 58,978 21,01,270 53,533
Aditya Birla Sun Life Credit Risk Fund- Segregated Portfolio 1- Direct Plan- 12,81,805 218 12,81,805 533
Aditya Birla Sun Life Medium Term Plan- Segregated Portfolio 1-Growth - 42,03,340 2,394 42,03,340 5,856
Nippon India Credit Risk Fund - Segregated Portfolio 1 - Direct Plan - - - 29,51,762 364
Aditya Birla Sun Life Credit Risk Fund - Direct Plan - Growth 0 0 0 0
Nippon India Liquid Fund - Direct Plan Growth Plan - Growth Option 0 2 0 1
Franklin India SHORT TERM INCOME PLAN - Direct - GROWTH 2 8 18 77
Axis Liquid Fund - Direct Plan - Growth Option 0 0 0 0
ICICI Prudential Liquid Fund - Growth 0 0 0 0
Nippon India Credit Risk Fund - Segregated Portfolio 2 - Direct Plan - - - 1 -
Nippon India Money Market Fund - Direct Plan Growth Plan - Growth 1 3 1 3
Nippon India Liquid Fund - Direct Plan Growth Plan - Growth Option - - 0 2
Nippon India Low Duration Fund - Direct Plan Growth Plan - Growth 0 0 0 1
ICICI Prudential Medium Term Bond Fund - Direct Plan - Growth 1 0 1 0
Axis Strategic Bond Fund - Direct Plan - Growth Option 1 0 1 0
Nippon India Credit Risk Fund - Direct Plan - Growth Plan 1 - 1 -
Kotak Credit Risk Fund - Growth - Direct 0 - 0 0
Aditya Birla Sun Life Savings Fund - Growth - Direct Plan - 0 0
Franklin MF-Franklin India Credit Risk Fund SEG Port2- 32,40,532 1,758 35,52,047 -
Franklin MF-Franklin India Income Opportunities Fund
30,42,903 -
Seg Port2-10.90%VODA2SEP23 Direct Growth 27,76,041 1,414
Franklin MF-Franklin India Short Term Income PL-RTLSEG PORT2- 16,060 1,490 17,606 -
Frank STISP3 R-DGRW 19,122 - 19,122 -
Frank CRFSP3 D-GROW 38,57,985 - 38,57,985 -
ICICI Prudential Savings Fund - Direct Plan - Growth - - 1 1
Total 73,474 2,04,540
(ii) Investments in Preference shares :
The Company has been invested in 0 % Compulsorily Covertible Preference Shares Qty 2,50,00,000 ( Previous Year Qty. 2,50,00,000 ) of ` 10 each of
Reliance Securities Limited as per below terms :-
Particulars Terms
Instrument 0% Compulsorily Convertible Optionally Redeemable preference shares (‘CCPS’) (with
Guaranteed yield - 6%).
Conversion terms A. 2 fully paid equity shares for 5 preference shares held.
B. During the tenor of the shares, the issuer thereof shall have the option to convert
the CCPS (along with guaranteed yield accrued thereon till date) at any time during
the tenor of the instrument into fully paid equity shares in the conversion ratio
mentioned above.
C. To the extent the issuer has not exercised its option to convert into equity shares
during the tenor of the shares, and further if the issuer has not exercised its
redemption option as stated below, then it shall be compulsorily converted into fully
paid equity shares (along with guaranteed yield accrued thereon till date) at the end
of the tenor of the CCPS.
D. To determine the number of shares to be issued against guaranteed yield accrued

till the date of conversion, amount of yield accrued will be divided by Rs.25 (i.e. value
per share).
E. The issue price of equity shares on conversion would be Rs. 25/- per share
comprising of face Value of Rs. 10/- each and a premium of Rs. 15 per share.
Redemption Option The issuer shall have an option to redeem (along with guaranteed yield accrued till
date) which can be exercised before the expiry of tenor of CCPS (i.e. 10 years from
issue date).
Yield payments The issuer has a discretion to pay the yield on CCPS in cash.
Note 8 - Investments
8.1 Investments measured at fair value through profit and loss
The table below shows the credit quality and the maximum exposure to credit risk per based on the Company’s internal credit rating system and year-end stage
classification. The amounts presented are gross of impairment allowances. Details of the Company’s internal grading system and policies on whether ECL allowances
are calculated on an individual or collective basis are set out in Note 44.

Performing
High grade
Mutual Fund 73,474 - - 73,474 2,04,540 - - 2,04,540
Preference shares 3,33,505 - - 3,33,505 3,18,875 - - 3,18,875
Standard grade - - - - - - - -
Non- performing
Individually impaired - - - - - - - -
Total 4,06,979 - - 4,06,979 5,23,415 - - 5,23,415
An analysis of changes in the gross carrying amount and the corresponding ECLs is, as follows
Opening balance 5,23,415 - - 5,23,415 6,34,788 - - 6,34,788
New assets originated or purchased - - - - 7,71,371 - - 7,71,371
Assets derecognised or repaid (1,16,436) - - (1,16,436) (8,82,745) - - (8,82,745)
Closing balance 4,06,979 - - 4,06,979 5,23,415 - - 5,23,415

Opening balance - - - - - - - -
New assets originated or purchased - - - - - - - -
Assets derecognised or repaid - - - - - - - -
Closing balance - - - - - - - -
8.2 Investments measured at amortised cost

The table below shows the credit quality and the maximum exposure to credit risk per based on the Company’s internal credit rating system and year-end stage
classification. The amounts presented are gross of impairment allowances. Details of the Company’s internal grading system and policies on whether ECL allowances
are calculated on an individual or collective basis are set out in Note 44.

Performing
High grade 1 to 51
National savings certificate 20 - - 20 20 - - 20
Bonds - - - - - - - -
Preference shares - - - - - - - -
Standard grade - - - - - - - -
Non- performing
Individually impaired - - - - - - - -
Total 20 - - 20 20 - - 20
An analysis of changes in the gross carrying amount and the corresponding ECLs is, as follows
Opening balance 20 - - 20 1,00,140 - - 1,00,140
Assets derecognised or repaid - - - - (1,00,120) - - (1,00,120)
Closing balance 20 - - 20 20 - - 20

Opening balance - - - - - - - -
Assets derecognised or repaid - - - - - - - -
Closing balance - - - - - - - -
The increase in the ECL balance is due to the increase in the gross size of the portfolio as a result of new loan assets originated during the year.
Note 9 - Other Financial assets
Margin money placed with broker 4,85,050 3,36,821

Accrued Interest
On loans and advances 10,592 1,457
On fixed deposits 1,829 48
Other deposits 27 27
Other receivables 1,39,539 1,00,266
Provision on other receivable (1,00,004) -
Total 5,37,033 4,38,619
Note : During the previous year Company had sold Monsoon Studio Bond ( ISIN INE955X07016) of Rs. 1,00,004
thousand to Quant Capital Private Limited and said amount has been fully provided for during the year.
Note 10 - Inventories
Shares & Securities* 41,607 49,814
Total 41,607 49,814

(i) Overseas Investments - -
(ii) Investments in India 41,607 49,814
Total 41,607 49,814
Less: Allowance for Impairment loss -
Total 41,607 49,814
* Financial instruments held as inventory are measured at fair value through profit or loss.
Note 11 - Current tax assets (net)
Advance payment of tax and tax deducted at source (Net of

Provision) 25,156 27,023
Total 25,156 27,023
Note 12 - Deferred tax assets (net)
Deferred tax assets / (liabilities) (Net) 1,07,909 1,07,909
Total 1,07,909 1,07,909

Note 13 - Investment property
Gross block
Opening gross carrying amount 2,347 2,347
Additions - -
Disposals - -
Closing gross carrying amount 2,347 2,347
Accumulated depreciation
Opening accumulated depreciation 168 126
Depreciation charge 42 42
Disposals - -
Closing accumulated depreciation 210 168
Net carrying amount 2,138 2,180
Fair market value of the property is Rs. 2,837 thousands as on March 31, 2022 (Rs. 2,733 thousands as on March
31, 2021).
Financial statements for the year ended March 31, 2022 ( in thousands)
Note 10 - Inventories (Continue)

Debt Securities Face Value Quantity Amount Quantity Amount
ECL Finance Limited SEC RED NCD SR. II 1,000 315 426 315 389
ECL Finance Limited SEC RED NCD SR. IV 1,000 610 803 610 720
ECL Finance Limited SEC RED NCD SR. V 1,000 2,965 4,109 2,965 3,499
8.00% L&T Finance Limited 100 30,000 3,150
8.52% IDFC BANK LTD 10,00,000 1 1,000 1 979
Reliance Capital Limited NIFTY-9-3-20-PVT 1,00,000 75 1,875 75 1,875
Reliance Capital Limited B-/353A 1,00,000 50 1,250 50 1,250
Reliance Capital Limited B-/359-III 1,00,000 195 4,875 195 4,875
Reliance Capital Limited B-/433A 1,00,000 1,000 25,000
Reliance Home Finance Limited-NIFTY-16-8-22-PVT 5,00,000 25 3,125 25 3,125
Reliance Assets Reconstruction Company Limited A03 1,00,000 - - 15 1,818
Reliance Assets Reconstruction Company Limited NIFTY-30-3-21 1,00,000 - - 15 1,813
Reliance Securities Limited 180731 1,00,000 25 3,376 5 659
Reliance Securities Limited NIFTY-20-6-23-PV 1,00,000 5 982 5 662
Torus Financial Market 1,00,000 4 4,000 - -
Anheuser Busch Inbev 10 5,000 1,945 - -
Sterlite Power 2 2,500 3,751 - -
Hdb Fin Ser Ltd 10 10,000 9,001 - -
Market Simplife 10 13,597 1,088 - -
41,606 49,814
Note 14 - Property, plant and equipment
Leasehold Office Furniture Data processing

Particulars Total
Improvements equipments and fixtures machineries
Net carrying amount as at March 31, 2022
Opening gross carrying amount 975 746 184 1,592 3,496
Additions - - - - -
Additions (At cost) - - - - -
Disposals and transfers - - - (580) (580)
Closing gross carrying amount 975 746 184 1,012 2,916
Opening accumulated depreciation 329 157 18 680 1,185
Depreciation charge 323 147 18 474 963
Disposals and transfers - - - (400) (400)
Closing accumulated depreciation 652 304 36 754 1,748
Net carrying amount as at March 31, 2022 323 441 147 258 1,169
Leasehold Office Furniture Data processing

Particulars Total
Improvements equipments and fixtures machineries
Net carrying amount as at March 31, 2021
Opening gross carrying amount 975 746 184 1,592 3,496
Additions - - - - -
Additions (At cost) - - - - -
Disposals and transfers - - - - -
Closing gross carrying amount 975 746 184 1,592 3,496
Opening accumulated depreciation - - - 126 125
Depreciation charge 330 157 18 554 1,060
Disposals and transfers - - - - -
Closing accumulated depreciation 330 157 18 680 1,185
Net carrying amount as at March 31, 2021 645 588 166 912 2,311
Note 15 - Other intangible assets

A. Goodwill
Goodwill on
Particulars business Total
acquisition
Year ended Mar 31, 2022
Gross carrying amount
Additions - -
Disposals and transfers - -
Accumulated amortisation - -
Amortisation during the year - -
Closing accumulated depreciation - -
Net carrying amount as at March 31, 2022 59,327 59,327
Goodwill on
Particulars business Total
acquisition
Year ended March 31, 2021
Additions - -
Accumulated amortisation - -
Amortisation during the year - -
Closing accumulated depreciation - -
Note:-
1) The recoverable amount is based on its value in use. The value in use is estimated using discounted cash flows over a period of 5 years. Cash flows
beyond 5 years is estimated by capitalising the future maintainable cash flows by an appropriate capitalization rate and then discounted using pre-tax
discount rate. Operating margins and growth rates for the five year cash flow projections have been estimated based on past experience and after
considering the financial budgets/forecasts provided by the management. The values assigned to the key assumptions represent management’s
assessment of future trends in the relevant industry and have been based on historical data from both external and internal sources. The management
believes that any reasonably possible change in the key assumptions would not cause the carrying amount to exceed the recoverable amount.
B. Other intangible assets

Computer
Particulars softwares/ Total
Licensing cost
Additions - -
Disposals and transfers -99 (99)
Accumulated amortisation 3,266 3,266

Amortisation during the year 1,808 1,808
Disposals and transfers -33 (33)
Closing accumulated depreciation 5,041 5,041
Computer
Particulars softwares/ Total
Licensing cost
Additions - -
Accumulated amortisation 1,436 1,436

Amortisation during the year 1,830 1,830
Closing accumulated depreciation 3,266 3,266
Note:-
i) In respect of Intangible assets it is other than internally generated.
Note 16 - Other non-financial assets

Prepaid expenses 46 669

Service tax / GST input credit - 28,197
Advance given to vendors 490 453
Total 536 29,319
Note 17 - Derivative financial instruments
The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that
either meet the hedge accounting requirements or hedges that are economic hedges, but the Company has elected not to apply hedge
accounting requirements.
The table below shows the fair values of derivative financial instruments recorded as 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.
Particulars Notional amounts Fair value of liabilities
March 31, 2022
Equity derivatives 13,073 21
Total 13,073 21
Particulars Notional amounts Fair value of liabilities

March 31, 2021
Equity derivatives 1,66,778 14,988
Total 1,66,778 14,988
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are Market linked debentures.
The Company's risk management strategy and how it is applied to manage risk are explained in Note 44.
Note 18 - Trade Payables
(i) total outstanding dues of micro enterprises and small - -

enterprises
(ii) total outstanding dues of creditors other than micro enterprises and small
enterprises 757 283
Total 757 283
The information as required under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) has been determined
to the extent such parties have been identified on the basis of information received from suppliers regarding their status under the said
act as available with the Group and relied upon by the auditors, is as follows:
According to the information available with the Company there are no dues (Previous year Rs Nil) payable to Micro and Small Enterprises
as defined under Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2022.
Note 19 - Debt securities

At fair value through profit and loss

Market linked debentures (Secured) 6,54,109 6,36,254
Total (A) 6,54,109 6,36,254
Debt securities in India 6,54,109 6,36,254

Debt securities outside India
Total (B) 6,54,109 6,36,254
Related party - 1,054

others 6,54,109 6,35,200
Total (C) 6,54,109 6,36,254
Security clause in respect to debentures

Market linked non convertible debentures (MLD) are secured by way of first ranking mortgage and charge over the Company’s
Immovable property situated at 4th Floor, Tower C, Siddhi Vinayak Towers, Makarba, Ahmedabad, Gujarat and on all present and future
book debts/ business receivable of the Company as specifically mentioned in the Trust deed.
In addition to the above, for each category of debentures the following respective additional security shall be available :
Category A Debentures :
A first pari passu charge on the present and future investments (investments includes non-current investments, current investments and
stock in trade and excludes investments in equity and preference shares) of the Company; within a minimum asset cover of 100% at all
time during the tenor of debentures.
Note 20 - Subordinated liabilities
Preference Shares other than those that qualify as Equity 1,61,182 1,61,182
Total (A) 1,61,182 1,61,182
Subordinated Liabilities in India 1,61,182 1,61,182

Subordinated Liabilities outside India
Total (B) 1,61,182 1,61,182
Terms of preference shares :
March 2022
12% Non-convertible Cumulative Redeemable Preference Shares of 10/-each
The 12% Non-Convertible Cumulative Redeemable Preference Share (NCCRPS) holders shall be entitled to such rights and privileges as
are available to them under the Companies Act, 2013.
They shall carry a preferential rights vis-a-vis equity shares of Company in respect of payment of capital and dividend in case of a winding
up and shall be non participating in surplus of the Company.
'NCCRPS' were redeemable at issue price along with accumulated unpaid dividend on March 25, 2022. further, in relation to extension
request of the same was discussed during the Committee of Creditors (“CoC”) meeting of Reliance Capital Limited dated March 22, 2022
and the agenda was approved by CoC saying that "the extension request for a period of 1 year or plan getting approved from final
authority whichever is earlier is hereby approved”
12% Non- Convertible Cumulative Redeemable Preference Shares (Qty 13000 Face Value Rs. 10) were issued on March 26, 2020
pursuant to the scheme of arrangement of Reliance Money Solutions Private Limited with the Company.
'NCCRPS' are redeemable at issue price along with accumulated unpaid dividend after the expiry of 10 years from the date of allotment
i.e. March 26, 2020.
March 2021
12% Non-convertible Cumulative Redeemable Preference Shares of 10/-each
The 12% Non-Convertible Cumulative Redeemable Preference Share (NCCRPS) holders shall be entitled to such rights and privileges as
are available to them under the Companies Act, 2013.
They shall carry a preferential rights vis-a-vis equity shares of Company in respect of payment of capital and dividend in case of a winding
up and shall be non participating in surplus of the Company.
i.e. March 26, 2018.
12% Non- Convertible Cumulative Redeemable Preference Shares (Qty 13000 Face Value Rs. 10) were issued on March 26, 2020
pursuant to the scheme of arrangement of Reliance Money Solutions Private Limited with the Company.
i.e. March 26, 2020.
Note 21 - Other financial libilities
Divided payable on preference shares 73,898 55,411

Provision for expenses 74,727 41,009
Total 1,48,625 96,420
Note 22 - Provisions
Provision for gratuity 1,075 3,059

Contingent provision against standard assets 2,503 2,550
Total 3,578 5,609

Movement of provisions other than employee benefit and loan commitment :

Particulars
As at March 31, 2020 3,840

Add: Additions during the year -
Less: Utilised during the year (1,290)
Any other movement, specify -
As at March 31, 2021 2,550
Add: Additions during the year -
Less: Utilised during the year (46)
Any other movement, specify -
As at March 31, 2022 2,503
Note 23 - Other non-financial liabilities
Statutory liabilities 61,830 22,154

Advance from clients 230 1,152
Payable to or on behalf of employees 395 231
Total 62,455 23,537

Note 19-Debt Securities (continue)
Maturity Pattern of non-convertible market linked debentures are set out below:
Face Value
Description Issue Date 2022-23 2023-24 2024-25 Total
(In Thousand)
B/190116 17-01-2019 10,000 17,566 - - 17,566
B/190116/II 25-01-2019 13,000 22,836 - - 22,836
B/190116/III 25-01-2019 20,000 35,132 - - 35,132
B/190116/IV 01-02-2019 10,000 17,566 - - 17,566
B/190116/V 07-02-2019 49,500 86,952 - - 86,952
B/190116/VI 11-02-2019 30,000 52,698 - - 52,698
B/190314 15-03-2019 10,000 - 16,562 - 16,562
B/190314/II 20-03-2019 30,000 - 49,686 - 49,686
B/190314/III 29-03-2019 40,000 - 66,248 - 66,248
B/190314 - 4 11-04-2019 50,000 - 82,810 - 82,810
B/190314 - 5 10-05-2019 20,000 - 33,124 - 33,124
B/190314 - 6 28-05-2019 20,000 - 33,124 - 33,124
B/190314 - 7 12-06-2019 20,000 - 33,124 - 33,124
B/190314 - 8 17-07-2019 10,000 - 16,562 - 16,562
B/190314 - 9 29-08-2019 10,500 - 17,390 - 17,390
B/200907 /I 08-09-2020 5,000 - - 6,404 6,404
B/200907/II 08-09-2020 5,000 - - 5,979 5,979
B/200907/I - 2 17-12-2020 2,000 - - 2,562 2,562
B/201214 15-12-2020 10,000 - - 11,557 11,557
B201214/2 12-01-2021 10,000 - - 11,557 11,557
B201214/3 19-01-2021 10,000 - - 11,557 11,557
B201214/4 02-02-2021 10,000 - - 11,557 11,557
B201214/5 10,000 - - 11,557 11,557
Total 2,32,750 3,48,630 72,729 6,54,109
Note 18.1 - Trade Payables ageing
As at 31 March 2022
Outstanding for following periods from due date of payment

Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
(i) MSME - - - - -
(ii) Others 757 - - - 757
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -
757 - - - 757
As at 31 March 2021
Outstanding for following periods from due date of payment

Particulars
Less than 1 year 1-2 years 2-3 years More than 3 years Total
(i) MSME - - - - -
(ii) Others 282 - - 1 283
(iii) Disputed dues – MSME - - - -
(iv) Disputed dues - Others - - - -
282 - - 1 283
Note 24 - Equity share capital

Particulars
No. Amount No. Amount
Authorised Capital
Equity Shares of 10 each 2,50,00,000 2,50,000 2,50,00,000 2,50,000
Preference Shares of 10 each 3,50,00,000 3,50,000 3,50,00,000 3,50,000
6,00,00,000 6,00,000 6,00,00,000 6,00,000

Particulars
Issued, subscribed and paidup Capital
Equity Shares of 10 each fully paid up 2,41,57,897 2,41,579 2,41,57,897 2,41,579
2,41,57,897 2,41,579 2,41,57,897 2,41,579
(a) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year.

Particulars
Outstanding at the beginning of the year 2,41,57,897 2,41,579 2,41,57,897 2,41,579
Shares issued during the year/period - - - -
Outstanding at the end of the year/period 2,41,57,897 2,41,579 2,41,57,897 2,41,579
(b) Terms and Rights attached to equity shares

The Company has only one class of equity share having a par value of 10/- per share. Each holder of equity share is entitle to one vote per
share.
In the event of liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining asset of the Company
after distribution of all preferential amount.
(c) Shares of the Company held by the holding Company

Particulars
No. % holding No. % holding
Reliance Capital Limited 2,41,57,897 100% 2,41,57,897 100%
(the holding Company) and its nominees
(d) Details of shareholders holding more than 5% of the shares in the Company

Particulars
(e) Shares held by promoters at the end of the year

Particulars
Note 25 - Other equity
Securities premium
Opening balance 3,68,421 3,68,421
Ass: Issued during the year - -
Add/(Less) : Changes during the year - -
Closing balance 3,68,421 3,68,421
Statutory reserve fund

Add: Amount transferred from Statement of Profit and loss - 1,227
Retained earnings
Add: Amount transferred from Statement of Profit and loss (1,02,435) 6,136
Less: Transfer to statutory reserve fund - (1,227)
Other comprehensive income

Opening balance (1,165) (783)
Other comprehensive income for the year 3 (382)
Closing balance (1,162) (1,165)
Total 7,07,852 8,10,287
Nature and purpose of reserve

(a) Securities premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
(b) Statutory reserve fund

Statutory reserve fund is created by tranferring 20% of the profit for the year pursuant to section 45-IC of the
Reserve Bank of India Act, 1934 for NBFC Companies.
(c) Retained earnings

Retained earnings represents accumulated surplus of profit and loss.
(d) Other comprehensive income

Other comprehensive income represents actuarial gains / (losses) arising on recognition of defined benefit plans.
)
Note 26 - Interest income
Year ended Year ended
Particulars
March 31, 2022 March 31, 2021
On financial assets measured at amortised costs:

Interest on loans 48,551 43,416
Interest income from investments - 9
Interest on deposits with banks 18,174 22,080
Interest income from current investments 85 418
Total 66,810 65,923
Note 27 - Fees, Commission & Other Operating Income

Particulars
March 31, 2022 March 31, 2021
Commission and fees 69,492 13,001
Total 69,492 13,001
Note 28 - Net gain on fair value changes

Particulars
March 31, 2022 March 31, 2021
(A) Net gain/ (loss) on financial instruments at fair value through profit or
loss
On trading portfolio
(i) Mutual Fund 18,980 19,716
(ii) Net gain/(loss) on derivatives 1,37,061 -
(iii) Bonds 1,236 6,723
(iv) Unlisted Shares 1,686 -
(B) Net gain/ (loss) on fair value changes on preference shares 14,630 13,988
Total Net gain/(loss) on fair value changes 1,73,593 40,427
Fair Value changes:

Realised 1,70,635 18,259
Unrealised 2,958 22,168
Total Net gain/(loss) on fair value changes 1,73,593 40,427
Note 29 - Other Income

Particulars
March 31, 2022 March 31, 2021
Interest on income tax refund 2,957 110

Provision written back / Miscellaneous income 90 28,861
Total 3,047 28,971
)
Note 30 - Finance cost
Particulars
March 31, 2022 March 31, 2021
On financial liabilities measured at amortised cost:

Interest on preference shares 18,486 20,219
Interest on borrowings 298 571
On financial liabilities measured at FVTPL:

Interest on debentures 1,01,174 90,454
Hedging gain on derivatives (1,08,305) (1,94,203)
Total 11,653 (82,959)
Note 31 - Fees and commission expense

Particulars
March 31, 2022 March 31, 2021
Fees and commission expense 5,338 284
Total 5,338 284
Note 32 - Employee benefits expenses

Particulars
March 31, 2022 March 31, 2021
Salaries and wages 1,41,708 89,440

Contribution to provident and other funds 2,930 3,154
Staff welfare expenses 246 66
Total 1,44,884 92,660
Note 33 - Others expenses

Particulars
March 31, 2022 March 31, 2021
Rent and electricity 2,119 2,616

Rates and taxes 191 412
Professional charges 6,134 3,876
Insurance 1,020 667
Membership and subscription 1,358 249
Miscellaneous expenses 4 0
Bank Charges 44 3
Communication Expenses 15 13
Printing and Stationery - 3
Travelling, conveyance 211 354
Reversal of interest income earlier year 1,457 17,655
Software expenses 851 1,071
Provision for doubtful assets 1,00,004 -
- non performing assets 1,41,277 1,50,242
Bad Debts 1,778 -
Auditors' remuneration - -
- Audit fees 450 450
- Limited review & Other Fees 190 245
Corporate social responsibility expenditure 746 1,742
Office administration expenses 329 57
Loss on sale\discardment of property, plant and equipment 245 -
Total 2,58,423 1,79,655
Notes to financial statements for the year ended March 31, 2022 ( in thousands)
34 Contingent Liabilities and commitments

As at March 31, As at March 31,
Particulars
2022 2021
Guarantees given by scheduled banks on behalf of the Company towards

Security deposit in favour of VAT Authorities of four States. 350 350
35 Segment Information for the year ended March 31, 2022

The Company has reported segment wise information as per IND AS 108 "Operating Segment", notified under the Companies (Indian Accounting
Standards) Rules, 2015. The operations of the Company are conducted within India, there is no separate reportable geographical segment and
the Company reported the following business segments:
(i) Financing and Investing activity : This comprise of investments & lending against shares/securities/commodities.
(ii) Commission and Fees: Commission and Fees activities includes distribution of financial product distribution, etc.
Year ended March Year ended March

Particulars
31, 2022 31, 2021
1. Segment Revenue
a. Financing and investing activity 2,40,404 1,15,841
b. Commission and Fees 69,492 13,001
c. Unallocable 3,047 19,480
Total Segment Revenue 3,12,943 1,48,322
2. Segment Results
a. Financing and investing activity (1,21,824) (43,305)

b. Commission and Fees 28,483 2,230
c. Unallocable (16,826) (3,175)
Total Segment Profit before tax (1,10,167) (44,250)
3. Segment Assets
b. Commission and Fees 1,641 915
c. Unallocable 1,33,092 1,34,959
Total Segment Assets 19,80,158 19,90,139
Segment Liabilities
b. Commission and Fees - -
c. Unallocable 2,35,080 2,16,593
Total Segment Liability 10,30,727 9,38,273
36 Income tax
36.1 The components of income tax expense for the year ended March 31, 2022 and March 31, 2021 are:
Year ended Year ended March

Particulars
March 31, 2022 31, 2021
Current tax 1,480 1,624
Adjustment in respect of current income tax of prior years (9,212) (2,682)
Deferred tax - (49,200)
Total (7,732) (50,258)
Notes to financial statements for the year ended March 31, 2022 ( in thousands)
36.2 Reconciliation of the total tax charge
The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been charged at India
corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the years ended
March 31, 2022 and March 31, 2021 is, as follows:
Year ended Year ended March
Particulars
March 31, 2022 31, 2021
Accounting profit before tax (1,10,167) (44,250)
Tax at India’s statutory income tax rate of 25.17% (previous year 25.17%) (27,727) (11,137)
Tax effect of the amount which are not taxable in calculating taxable income :
Non deductible expense as per Income tax 188 411
Tax expenses at special rate (691) -
Deferred tax assets not created on temprory difference 29,710 (36,849)
Earlier year taxes (9,212) (2,682)
Income tax expense at effective tax rate (7,732) (50,258)
Effective tax rate 7.02% 113.58%
36.3 Deferred tax assets/liabilities

The balance comprises temporary differences attributable to the below items and corresponding movement in deferred tax assets / liabilities:
Charged/
As at March 31, Charged/ As at March 31,
Particulars (credited) to profit
2020 (credited) to OCI 2021
and loss
Deferred tax liability :
Depreciation (3,322) 2,268 - (1,054)
Unrealised gain on units of Mutual funds (2,979) (2,483) - (5,462)
Unrealised gain on Futures - - - -
(6,301) (215) - (6,516)
Deferred tax asset :
Provision for gratuity 458 312 - 770
Provision for expense 5,793 (4,848) - 945
Provision for standard assets 998 (998) - -
Provision for doubtful debts 28,136 36,913 - 65,049
Provision on GST / service tax input credit 3,120 (3,120) - -
MTM Loss on open future & option position 4,479 14,497 - 18,976
MAT credit entitlement 16,912 (16,912) - -
BFL 4,986 23,699 - 28,685
64,882 49,543 - 1,14,425
Net deferred tax asset/(liability) 58,581 49,328 - 1,07,909
As at March 31, Charged/ Charged/ As at March 31,

Particulars
2021 (credited) to profit (credited) to OCI 2022
Deferred tax liability :
Depreciation (1,054) 8,014 - 6,960
Unrealised gain on options - 10,724 - 10,724
Unrealised gain on units of Mutual funds (5,462) (1,742) - (7,205)
(6,516) 16,995 - 10,480
Deferred tax asset :
Provision for gratuity 770 (500) - 270
Provision for expense 945 163 - 1,108
Provision for standard assets - 1,00,605 - 1,00,605
Provision for doubtful debts 65,049 (39,880) - 25,169
MTM Loss on open future & option position 18,976 (8,252) - 10,724
Unrealised loss on units of Mutual funds - (7,205) - (7,205)
Unamortised processing fees revenue 28,685 3,891 - 32,576
1,14,425 48,823 - 1,63,248
Net deferred tax asset/(liability) 1,07,909 65,819 - 1,73,728
Note The Company's deferred tax constitute mainly temporary differences in tax assets and liabilities, the company has decided to restrict
deferred tax assets recognistion upto Rs. 1,07,909 on conservative basis.
Notes to financial statements for the year ended March 31, 2022 in thousands)
37 Employee Benefits
The Company has classified the various benefits provided to employees as under:
(A) Defined contribution plans
The Company has a defined contribution plan in respect of provident fund. Contributions are made to provident fund in India for employees at the rate of 12% of basic
salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the company is limited to the
amount contributed and it has no further contractual nor any constructive obligation.
Year ended March 31, Year ended March 31,

Particulars 2022 2021
Employer’s Contribution to Provident Fund (includes administration charges) Refer Note No. 32 2,930 3,154
(B) Defined Benefit Plans:

Gratuity and Leave Encashment:
The employees’ gratuity fund scheme managed by a Trust (Reliance Financial Limited Employees Gratuity Assurance Scheme) is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as
gratuity.
Employee Benefit Obligation (Gratuity and Leave Encashment)

Gratuity Benefits Leave Encashment Benefits
(Funded) (Un-Funded)
I. Change in present value of obligation: FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Present value of obligations at the beginning of the year 9,110 1,807 - -
Interest Cost 619 124 - -
Current Service Cost 870 1,101 - -
Liability for Transferred In / (out) 1 5,519 - -
Benefit Paid (262) (121) - -
Acturial loss / (gain) arising from change in financial assumptions (488) 42 - -
Acturial loss / (gain) arising from change in demographic assumptions (32) 20 - -
Acturial loss / (gain) arising on account of experience changes 444 619 - -
Present value of obligations at the end of the year 10,262 9,110 - -
II. Change in the fair value of Plan Assets : FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Fair Value of Plan Assets at the beginning of the year 6,051 451 - -
Interest income 411 31 - -
Assets for Transferred In / (out) 1 5,519
Contributions 3,059 - - -
Benefit Paid (262) (121) - -
Actuarial gain/(loss) on Plan Assets (73) 171 - -
Fair Value of Plan Assets at the end of the year 9,188 6,051 - -
III. Reconciliation of present value of obligation and fair value of assets : FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Liability at the end of the year 10,262 9,110 - -
Fair value of plan assets at the end of the year 9,188 6,051 - -
(Asset)/Liability Recognised in the Balance Sheet* 1,074 3,059 - -
* Included under ‘provisions' (Refer Note 22)
IV. Expenses recognised during the year : FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Current Service Cost 870 1,101 - -
Interest Cost 619 124 - -
Expected Return on Plan Assets (411) (31) - -
Net Actuarial (Gain)/Loss recognised (4) 510 - -
1,074 1,703 - -
Disclosed under OCI 4 (510) - -
Expense Recognised in Statement of profit and loss 1,078 1,193 - -
V. Amount recorded in Other comprehensive Income (OCI) FY 2021-22 FY 2020-21

Actuarial (Gains)/Losses on Obligation For the Period (77) 680
Return on Plan Assets, Excluding Interest Income 73 (170)
Net (Income)/Expense For the Period Recognized in OCI (4) 510
V. Investment details :
Total value of investments for employees gratuity fund scheme is managed by insurance Company.
VI. Assumptions : FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21

Discount Rate (per annum) 7.23% 6.80% - -
Expected Return on Plan Assets 7.23% 6.80% - -
Salary Escalation 6.00% 6.00% - -
For 0 yrs to 4 yrs 26.00% p.a. & 2% For 0 yrs to 4 yrs 20.00% p.a. &
Rate of Employee Turnover
thereafter 2% thereafter - -
Indian Assured Lives Mortality Indian Assured Lives Mortality
Mortality Rate During Employment
(2012-14) (2006-08) - -
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply
and demand in the employment market. The above information is certified by the actuary.
VII. Particulars of amounts of gratuity for the year FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18
Present value of obligations at the beginning of the year 10,262 9,110 1,807 807 525
Fair value of plan assets at the end of the year 9,188 6,051 451 563 66
Excess of Obligation Over Plan Asset 1,074 3,059 1,356 244 459
Experience and Financial Assumption
Adjustment on Plan Liability (Gain)/Loss (45) 661 842 (100) 298
Actuarial Gain /(Loss) due to Plan Asset (73) 171 12 33 (60)
(C) Sensitivity analysis:

The sensitivity of the defined benefit obligation to changes in the weighted principal assumption is:
Impact on defined benefit obligation

Change in assumption Increase in assumption Decrease in assumption
Particulars
As at March As at March 31, As at March 31, As at March 31,
31, 2022 2021 2022 2021 As at March 31, 2022 As at March 31, 2021
Discount Rate 1% 1% (1,030) (969) 1,183 1,121
Salary growth rate 1% 1% 1,185 1,119 (1,051) (985)
Employee Turnover 1% 1% 95 59 (105) (65)
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in
some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined obligation calculated with the projected unit credit method at the end of reporting period) has been applied as when calculating the defined
benefit liability recognised in the balance sheet.
The methods and types of assumptions used un preparing the sensitivity analysis did not change compared to the prior year.
(D) Major Category of Plan Asset as a % of total Plan Assets

As at March As at March 31, As at March 31, As at March 31,
Category of Assets (% Allocation) 31, 2022 2021 2022 2021
% Amount
Insurer managed funds 100% 100% 9,188 6,051

Total 100% 100% 9,188 6,051
(F) Risk exposure

Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. The gratuity fund is
administered through Reliance Nippoin Life Insurance Ltd. (insurer) under its group gratuity scheme. Accordingly almost the entire plan asset investments is maintained by
the insurer. These are subject to interest rate risk which is managed by the insurer.
Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ assets maintained by the insurer.
The gratuity fund is administered through insurer under its Group Gratuity Scheme. Unique advantage of this scheme is that contribution made by the Company and
interest credited by insurer are irreversible. This ensures higher level of safety for the total corpus and consistency in future contribution. The total corpus comprising of
money contributed by the Company and the interest credited by insurer is available for claim settlements to 100% subject to availability of funds. On the exit of the
employees due to retirement/ death /resignation the gratuity trust makes a claim on insurer which is then paid to the employees after receipt of such claim. The
investment risk in this case is not borne by the Company.
(G) Defined benefit liability and employer contribution
The Company generally eliminates the deficit in the defined benefit gratuity plan with in next one year.
Expected contribution to the post employment benefit plan (Gratuity) for the year ending March 31, 2023 are Rs. 1938.45 thousands
The expected maturity analysis of undiscounted post employment benefit plan (gratuity) is as follows :
Less than a Between 2-5

Particulars Between 1-2 years Over 5 years Total
year years
Defined benefit obligation (gratuity) 249 581 886 22,604 24,319
Defined benefit obligation (gratuity) 219 230 1,031 20,056 21,536
38 Earnings per share

Particulars March 31, 2022 March 31, 2021
Net profit/(loss) after tax as per statement of profit and loss (1,02,435) 6,136
Profit/(Loss) attributable to equity shareholders (1,02,435) 6,136
Weighted average number of equity shares outstanding during the year 2,41,57,897 2,41,57,897
Nominal value per equity share 10 10
Basic and diluted earnings per share (4.24) 0.25
39 Key ratios:
The following table set forth, the year indicated, the key financial ratios:
Gross NPA as a percentage of total loans and advance 58.06% 57.44%
Net NPA as a percentage of total loans and advance 4.79% 24.68%
Book value per share - Note (a) 39.30 43.54
Debt to equity ratio (Refer note 45) 0.94 0.81
(a) Book value per share = Networth/Equity shares. Networth =Equity Share capital + Reserves and surplus
40 Foreign currency transactions

Details of foreign currency transactions are as follows:
Expenditure incurred in foreign currency* NIL NIL

Income earned in foreign currency* NIL NIL
*During the year the Company had no unhedge foreign currency exposures.
41 Capital management
The primary objectives of the Company’s capital management policy are to ensure that the company complies with externally imposed capital requirements and maintains
strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholder value. No changes have been made to the objectives, policies
and processes from the previous years. However, they are under constant review by the Board.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk characteristics of its activities. In order to
maintain or adjust the capital structure, the company may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue capital
securities.
No changes have been made to the objectives, policies and processes from the previous years. However, they are under constant review by the Board.
Regulatory Capital
The following additional information is disclosed in terms of the RBI circular (Ref No. DNBR.PD.008 / 03.10.119 / 2016-17 dated September 01, 2016) and RBI circular
DNBR(PD) CC No. 053 / 03.10.119 / 2015-16 :
( in Thousand)
Capital to risk assets ratio (CRAR): As at March 31, 2022 As at March 31, 2021
Tier I capital 3,51,148 4,31,489
Tier II capital 1,63,686 1,63,732
Total capital 5,14,834 5,95,221
CRAR (%) 45.36% 48.18%
CRAR - Tier I capital (%) 30.94% 34.93%
CRAR - Tier II capital (%) 14.42% 13.25%
Amount of subordinated debt considered as Tier II capital 1,61,182 1,61,182
Regulatory capital Tier I capital, which comprises share capital, share premium, special reserves, share option outstanding account, retained earnings including current year
profit less accrued dividends. Certain adjustments are made to Ind AS based results and reserves, as prescribed by the Reserve Bank of India.
Notes to financial statements for the year ended March 31, 2022
in thousands)
42 Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled.

Particulars Within 12
Within 12 months After 12 months Total After 12 months Total
months
Financial assets
Cash and cash equivalents 3,05,632 - 3,05,632 18,628 - 18,628
Bank Balance other than (a) above 2,00,350 253 2,00,603 1,10,303 1,50,000 2,60,303
Derivative financial instruments 239 - 239 7,808 5,624 13,432
Receivables
(i) Trade receivables - - - - - -
(ii) Other receivables - - - - - -
Loans 2,86,765 - 2,86,765 4,50,920 - 4,50,920
Investments 73,474 3,33,525 4,06,999 2,04,540 3,18,895 5,23,435
Other Financial assets 5,37,006 27 5,37,033 4,38,564 55 4,38,619
Non-financial Assets
Inventories 41,607 - 41,607 49,814 - 49,814
Current tax assets (net) - 25,156 25,156 - 27,023 27,023
Deferred tax assets (net) - 1,07,909 1,07,909 - 1,07,909 1,07,909
Investment property - 2,138 2,138 - 2,180 2,180
Property, plant and equipment - 1,169 1,169 - 2,311 2,311
Goodwill - 59,327 59,327 59,327 59,327
Other intangible assets - 5,045 5,045 - 6,919 6,919
Other non-financial assets 536 - 536 1,122 28,197 29,319
Total assets 14,45,609 5,34,549 19,80,159 12,81,699 7,08,439 19,90,138
in thousands)

Particulars Within 12
Within 12 months After 12 months Total months After 12 months Total
Financial liabilities
Derivative financial instruments 21 - 21 14,682 306 14,988
Payables
Trade Payables
(i) total outstanding dues of micro enterprises

- - - -
and small enterprises
- -
(ii) total outstanding dues of creditors other

757 - 283 -
than micro enterprises and small enterprises
757 283
Other payables
(i) total outstanding dues of micro enterprises

- - - -
and small enterprises
- -
(ii) total outstanding dues of creditors other

- - - -
than micro enterprises and small enterprises
- -
Debt securities 2,32,750 4,21,359 6,54,109 80,555 5,55,699 6,36,254
Borrowings - - - - - -
Subordinated liabilities 1,61,052 130 1,61,182 - 1,61,182 1,61,182
Other financial libilities 1,48,603 22 1,48,625 96,420 - 96,420
1 to 51
Non-financial Liabilities
Current tax liabilities (net) - - - - - -
Provisions 3,578 - 3,578 5,609 - 5,609
Deferred tax liabilities (net) - - - - - -
Other non-financial liabilities 62,455 - 62,455 23,537 - 23,537
Total liabilities 6,09,216 4,21,512 10,30,727 2,21,086 7,17,187 9,38,273
Net 8,36,393 1,13,037 9,49,431 10,60,613 (8,748) 10,51,865
43 Fair value measurements

(a) Financial instruments by category
March 31, 2022 March 31, 2021

Particulars Fair value through profit or Fair value through
Amortised cost Amortised cost
loss profit or loss
Financial Assets
Loans - 2,86,765 - 4,50,920
Investments
- Mutual Funds 73,474 - 2,04,540 -
- National Savings certificate 20 20
- Debentures - - - -
- Preference shares 3,33,505 - 3,18,875 -
Derivative financial instruments 239 - 13,432 -
Trade and other receivables - - - -
Cash and cash Equivalents - 3,05,632 - 18,628
Other bank balances - 2,00,603 - 2,60,303
Other financials assets - 5,37,033 - 4,38,619
Total Financial Assets 4,07,218 13,30,053 5,36,847 11,68,490
Derivative financial instruments 21 - 14,988 -
Trade payables 757 283
Debt Securities 6,54,109 - 6,36,254 -
Borrowings (including interest) - - - -
Subordinated Liabilities
- Preference shares - 1,61,182 - 1,61,182
Other financial liabilities - 1,48,625 - 96,420
Total Financial Liabilities 6,54,129 3,10,564 6,51,241 2,57,886
Fair value hierarchy
The following section explains the judgements and estimates made in determining the fair values of the financial instruments that are
recognised and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.
b) Fair value hierarchy for assets
Assets and liabilities measured at fair value - recurring fair value measurements as at 31 March 2022
Particulars Note Level 1 Level 2 Level 3 Total
Financial Assets
Loans - - - - -
Investments - - - - -
- Mutual Funds 73,474 73,474 - - 73,474
- National Savings certificate - - - - -
- Debentures - - - - -
- Preference shares 3,33,505 - - 3,33,505 3,33,505
Derivative financial instruments 1 to 51 239 - - 239
Trade and other receivables - - - - -
Cash and cash Equivalents - - - - -
Other bank balances - - - - -
Other financials assets - - - - -
Total Financial Assets 4,06,979 73,713 - 3,33,505 4,07,218
Derivative financial instruments 21 21 - - 21
Trade payables - - - - -
Debt Securities 6,54,109 - - 6,54,109 6,54,109
Subordinated Liabilities - - - - -
- Preference shares - - - - -
Other financial liabilities - - - - -
Total Financial Liabilities 6,54,129 21 - 6,54,109 6,54,129
Assets and liabilities measured at fair value - recurring fair value measurements as at 31 March 2021
Particulars Note Level 1 Level 2 Level 3 Total
Financial Assets
Loans - - - - -
Investments - - - - -
- Mutual Funds 2,04,540 2,04,540 - - 2,04,540
- National Savings certificate - - - - -
- Debentures - - - - -
- Preference shares 3,18,875 - - 3,18,875 3,18,875
Derivative financial instruments 13,432 13,432 - - 13,432
Trade and other receivables - - - - -
Cash and cash Equivalents - - - - -
Other bank balances - - - - -
Other financials assets - - - - -
Total Financial Assets 5,36,847 2,17,972 - 3,18,875 5,36,847
Derivative financial instruments 14,988 14,988 - - 14,988
Trade payables - - - - -
Debt Securities 6,36,254 - - 6,36,254 6,36,254
Subordinated Liabilities - - - - -
- Preference shares - - - - -
Other financial liabilities - - - - -
Total Financial Liabilities 6,51,241 14,988 - 6,36,254 6,51,241
Notes:
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on
quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the
current bid price. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case
for unlisted equity securities.
There are no transfers between levels 1, 2 and 3 during the year. For transfers in and out of level 3 measurements see (d) below.
(c) Valuation techniques used to determine fair value
Specific valuation techniques used to value financial instruments include:
· Listed equity investments (other than subsidiaries and associates) - Quoted bid price on stock exchange
· Mutual fund - Net asset value of the scheme quoted on last trading day of the reporting year.
· Debentures or bonds - based on market yield for instruments with similar risk / maturity, etc.
· Other financial instruments – discounted cash flow analysis.
(d) Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 items for the periods ended 31 March 2022 and 31 March 2021:
Particulars Preference Share Bonds Total

As at March 31, 2020 3,04,887 1,00,120 4,05,007
Additions - -
Disposals (1,00,120) (1,00,120)
Gains/(losses) recognised in statement of profit and loss 13,988 13,988
As at March 31, 2021 3,18,875 - 3,18,875
Additions - -
Disposals - -
Gains/(losses) recognised in statement of profit and loss 14,630 - 14,630
As at March 31, 2022 3,33,505 - 3,33,505
(e) Valuation processes

The finance department of the Company includes a team that performs the valuations of non-property items required for financial reporting
purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO). Discussions of valuation processes and
results are held between the CFO and the valuation team at least once every six months, in line with the company’s half-yearly reporting
periods.
The main level 3 inputs used by the group are derived and evaluated as follows:
· Discount rates for financial assets and financial liabilities are determined using a capital asset pricing model to calculate a pre-tax rate that
reflects current market assessments of the time value of money and the risk specific to the asset.
· Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk gradings
determined by company's internal credit risk management group.
· Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.
· Contingent consideration – expected cash inflows are estimated based on the terms of the sale contract and the entity’s knowledge of the
business and how the current economic environment is likely to impact it.
Changes in level 2 and 3 fair values are analysed at the end of each reporting period during the half-yearly valuation discussion between the
CFO, AC and the valuation team. As part of this discussion the team presents a report that explains the reason for the fair value movements.
(f) Fair value of financial assets and liabilities measured at amortised cost
March 31, 2022 March 31, 2021
Particulars
Carrying Value Fair value Carrying Value Fair value
Financial Assets
Loans 2,86,765 2,86,765 4,50,920 4,50,920
Investments
- National Savings certificate 20 20 20 20
- Debentures - - - -
Trade and other receivables - - - -
Cash and cash Equivalents 3,05,632 3,05,632 18,628 18,628
Other bank balances 2,00,603 2,00,603 2,60,303 2,60,303
Other financials assets 5,37,033 5,37,033 4,38,619 4,38,619
Total Financial Assets 13,30,053 13,30,053 11,68,490 11,68,490
Trade payables 757 757 283 283
Subordinated Liabilities
- Preference shares 1,61,182 1,61,182 1,61,182 1,61,182
Other financial liabilities 1,48,625 1,48,625 96,420 96,420
Total Financial Liabilities 3,10,564 3,10,564 2,57,886 2,57,886
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of
impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, Trade receivables, cash and
cash equivalents, bank deposits and trade payables. Such amounts have been classified as Level 3 on the basis that no adjustments have
been made to the balances in the balance sheet.
The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a
current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including
counterparty credit risk.
The fair values of debt securities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values
in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
in thousands)
44 Financial risk management
Financial risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board has
established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Committee
holds regular meetings and report to board on its activities.
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. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the Company’s 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 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.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
Risk Exposure arising from Measurement Management of risk

Cash and cash equivalents, trade Online Monitoring of the LTV for Loans
Credit risk receivables, financial assets measured Ageing analysis Credit ratings Given Against Shares/Funding of
at amortised cost. Shares
Availability of surplus cash, committed

Liquidity risk Borrowings and other liabilities Rolling cash flow forecasts
credit lines and borrowing facilities
Regular monitoring to keep the net

Recognised financial assets and exposure at an acceptable level, with
Cash flow forecasting Sensitivity
Market risk – foreign exchange liabilities not denominated in Indian option of taking Forward foreign
analysis
rupee (INR) exchange contracts if deemed
necessary.
Portfolio diversification and regular

Price Risk Investments in mutual funds Credit ratings
monitoring
44.1 Credit risk
Credit risk is the risk of suffering financial loss, should any of the Company’s customers, clients or market counterparties fail to fulfil their contractual obligations
to the Company. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities.
The Company is also exposed to other credit risks arising from investments in debt securities.
Credit risk is the single largest risk for the Company’s business, management therefore carefully manages its exposure to credit risk. The credit risk management
and control are centralised in a credit risk management team which reports regularly to the Board of Directors.
44.1(a) Loans and advances

The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market
conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of
defaults occurring, of the associated loss ratios and of default correlations between counterparties. The Company measures credit risk using Probability of
Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring Expected Credit Loss
(ECL) under Ind AS 109.
in thousands)
44.1(b) Credit risk grading
The Company uses internal credit risk gradings that reflect its assessment of the probability of default of individual counterparties. The Company use internal
rating models tailored to the various categories of counterparty. Borrower and loan specific information collected at the time of application (such as client's
income, source of income) is fed into this rating model. This is supplemented with external data such as credit bureau scoring information on individual
borrowers. A separate evaluation of Collateral is done based on the financials, trading pattern of the collateral/Stock to be funded. In addition, the models
enable expert judgement from the Credit Risk Officer to be fed into the final internal credit rating for each exposure. This allows for considerations which may
not be captured as part of the other data inputs into the model.
The Company has its own internal credit rating framework that is uses for rating of investment proposals at the time of sanction and during the annual re-rating
exercise. The framework is robust and comparable to credit models used by premier rating agencies. Based on the analysis done by company, the parameters in
the rating model (promoter strength, business risk, market risk, financial risk, financial ratios etc.) are given a score between 1 (highest) to 4 (lowest). The
internal rating is based on the final score derived from the credit rating model as mentioned below.
Scale Credit Quality Mapping

A+ Highest Credit Quality <1.5
A High Credit Quality 1.51-2
A- Adequate Credit Quality 2.01-2.3
B+ Moderate Credit Quality 2.31-2.6
B Below Moderate Credit Quality 2.61-2.9
B- Risk Prone Credit Quality 2.91-3.2
C+ Poor Credit Quality 3.21-3.4
C Lowest Credit Quality 3.4-3.5
C- Borderline 3.5-3.6
D Default 1 to 51 >3.6
IR Not enough information
The grades above B are considered investment grade and the grades below B are speculative grade. Grade B shall be considered as risk prone grade and will be
subjectively evaluated by the credit committee. The client maximum exposure and the client LTV (Loan to value) is decided based on this internal credit rating.
The applications with speculative grades are rejected.
The Company has an internal policy of categorizing all the equity shares in three categories. The categorization is based on various parameters such as Value At
Risk, Market Cap, Average Daily Volumes, Impact Cost, Financial Ratios etc. Single Scrip exposure is provided only in Category A and B stocks, for Category C
scrips, there have to be multiple scrips to get loan.
44.1(c) Expected credit loss measurement

Ind AS 109 outlines a ‘three-stage’ model for impairment based on changes in credit quality since initial recognition as summarised below:
(a) A financial instrument that is not credit-impaired on initial recognition is classified in ‘Stage 1’ and has its credit risk continuously monitored by the Company.
(b) If a significant increase in credit risk (‘SICR’) since initial recognition is identified, the financial instrument is moved to ‘Stage 2’ but is not yet deemed to be
credit-impaired. Please refer to note 44.1(c)(1) for a description of how the Company determines when a significant increase in credit risk has occurred.
(c) If the financial instrument is credit-impaired, the financial instrument is then moved to ‘Stage 3’. Please refer to note 44.1(c)(2) for a description of how the
Company defines credit-impaired and default.
For the Company, ECL is calculated on lifetime basis only, whatever stage the Financial Instrument is in, since the loans are provided for 12 months only.
The key judgements and assumptions adopted by the Company in addressing the requirements of the standard are discussed below:
in thousands)
The following diagram summarises the impairment requirements under Ind AS 109 (other than purchased or originated credit-impaired financial assets):
44.1(c)(1) Significant increase in credit risk (SICR)

The Company considers a financial instrument to have experienced a significant increase in credit risk when one or more of the following have been met:
-The LTV of the Loan is more than APPROVED LTV
-The interest on loan is not cleared for more than 60 days.
44.1(c)(2) Definition of default and credit-impaired assets

The Company defines a financial instrument as in default, which is fully aligned with the definition of credit impaired, when it meets one or more of the following
criteria:
(i) The borrower is more than 90 days past due on its contractual payments.
(ii) The collateral value of the borrower has fallen below the Loans advanced to him.
The criteria above have been applied to all borrowers of the Company and are consistent with the definition of default used for internal credit risk management
purposes. The default definition has been applied consistently to model the Probability of Default (PD), Exposure at Default (EAD) and Loss given Default (LGD)
throughout the Company’s expected loss calculations.
The borrower is considered to be no longer be in default (i.e. to have cured) when he no longer meets any of the default criteria for a consecutive period of six
months. This period of six months has been determined based on an analysis which considers the likelihood of a borrowing returning to default status after cure
using different possible cure definitions.
44.1(c)(3) Measuring ECL - Explanation of inputs, assumptions and estimation techniques

The Expected Credit Loss (ECL) is measured on Lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition or
whether an asset is considered to be credit-impaired. Expected credit losses are the discounted product of the Probability of Default (PD), Exposure at Default
(EAD), and Loss Given Default (LGD), defined as follows:
• The PD represents the likelihood of a borrower defaulting on its financial obligation (as per “Definition of default and credit-impaired” above),over the
remaining lifetime (Lifetime PD) of the obligation.
• EAD is based on the amounts the Company expects to be owed at the time of default, over the remaining lifetime (Lifetime EAD).
• Loss Given Default (LGD) represents the Company’s expectation of the extent of loss on a defaulted exposure. LGD varies by type of counterparty, type and
seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at the time of default (EAD).
LGD is calculated on a lifetime basis, where Lifetime LGD is the percentage of loss expected to be made if the default occurs over the remaining expected
lifetime of the loan.
The ECL is determined by projecting the PD, LGD and EAD. These three components are multiplied together. This effectively calculates an ECL for each future
period.
The assumptions underlying the ECL calculation such as how the maturity profile of the PDs and how collateral values change etc. are monitored and reviewed on
a periodic basis.
There have been no significant changes in estimation techniques or significant assumptions made during the reporting period.
in thousands)
44.1(d) Credit risk exposure
44.1(d)(1) Maximum exposure to credit risk – Financial instruments subject to impairment

The following table contains an analysis of the credit risk exposure of financial instruments for which an ECL allowance is recognised. The gross carrying amount
of financial assets below also represents the Company’s maximum exposure to credit risk on these assets.
As at March 31,
2021
Particulars
Stage 1 Stage 2 Stage 3 Total Total
12-month ECL Lifetime ECL Lifetime ECL
Credit grade
Investment grade 4,06,999 - - 4,06,999 5,23,435
Standard monitoring 2,81,550 - - 2,81,550 4,50,920
Special monitoring - - - - -
Default - - 4,04,375 4,04,375 2,57,883
Gross carrying amount 6,88,549 - 4,04,375 10,92,924 12,32,238
Loss allowance 28,155 - 3,71,005 3,99,160 2,57,883
Carrying amount 6,60,394 - 33,370 6,93,764 9,74,355
Information on how the Expected Credit Loss (ECL) is measured and how the three stages above are determined is included in note 44.1(c)(3)
in thousands)
44.1(d)(2) Collateral and other credit enhancements
The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for funds advanced. The
Company has internal policies on the acceptability of specific classes of collateral or credit risk mitigation.
The Company prepares a valuation of the collateral obtained as part of the loan origination process. This assessment is reviewed periodically. The principal
collateral types for loans and advances are:
-The Collateral are either taken in company's Pool account or they are put in clients demat account with POA to company.
The Company’s policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the
overall quality of the collateral held by the Company since the prior period.
Financial assets and related collateral held in order to mitigate potential losses are shown below:
Impairment Fair value of
Particulars Gross exposure Carrying amount
allowance collateral held
Loan against securities
Company 48 48 - -
HUF - - - -
Individual 4,02,247 4,02,247 - -
LLP - - - -
Unsecured Loans
Company 5,31,150 -11,545 5,42,695 -
Individual - - - -
LLP - - - -
Related parties 84,100 8,410 75,690 -
Total 10,17,545 3,99,160 6,18,385 -
44.1(d)(3) Loss allowance
The loss allowance recognised in the period is impacted by a variety of factors, as described below:
-Transfers between Stage 1 or 2 and Stage 3 due to financial instruments becoming credit-impaired in the period.
-Additional allowances for new financial instruments recognised during the period, as well as releases for financial instruments de-recognised in the period;
-Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of inputs to models;
The following tables explain the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
Particulars Stage 1 Stage 2 Stage 3 Total
Loss allowance as at 1 April 2021 25,230 - 2,32,653 2,57,883
Movements with P&L impact 2,925 - 1,38,352 1,41,277
Transfers:
Transfers from Stage 1 to Stage 3 - - -
Transfers from Stage 3 to Stage 1 - - - -
l Impact on the measurement of ECL - - - -
due to changes
Additional Loansinduring
PDs, EADs and LGDsyear
the financial - - - -
Total net P&L charge during the year 28,155 - 3,71,005 3,99,160
Other movements with no P&L impact
Transfers:
Financial assets derecognised during the period - - - -
Loss allowance as at 31 March 2022 28,155 - 3,71,005 3,99,160
in thousands)
44.1(d)(4) Write-off policy
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable
expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Company’s
recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.
The Company may write-off financial assets that are still subject to enforcement activity. The Company still seeks to recover amounts it is legally owed in full, but
which have been partially written off due to no reasonable expectation of full recovery.
44.2 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of
committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the
Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents
on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set by the company. These limits vary by
location to take into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting
cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and
external regulatory requirements and maintaining debt financing plans.
(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period :
(₹ in thousand)
Particulars
2022 2021
Bank overdraft 45,000 45,000
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit
ratings, the bank loan facilities may be drawn at any time and have an maturity of 1 year.
(ii) Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the company’s financial assets and liabilities as at March 31. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is
not significant.
in thousands)
Contractual maturities of assets and Less than 3 3 to 12

On demand 1 to 5 years Over 5 years Total
liabilities months months
Financial assets
Cash and cash equivalents 3,05,632 - - - - 3,05,632
Bank balance other than cash and cash - 50,000 1,50,350 253 - 2,00,603
equivalentsfinancial
Derivative above instruments
- 239 - - 239
Receivables
(I) Trade receivables - - - - - -
(II) Other receivables - - - - - -
Loans - - 2,86,765 - - 2,86,765
Investments - 73,474 - - 3,33,525 4,06,999
Other financial assets - 5,26,414 10,592 27 - 5,37,033
Total financial assets 3,05,632 6,49,888 4,47,946 280 3,33,525 17,37,271
Derivative financial instruments 21 - 21
Payables
(I) Trade payables
(i) total outstanding dues of micro - - - - - -
enterprises and smalldues
(ii) total outstanding enterprises
of - 757 - - - 757
(II)creditors other than micro
Other payables - -
enterprises and smalldues
(ii) total outstanding enterprises
of - - - - - -
creditors
Debt other than micro
securities - - 2,32,750 4,21,359 - 6,54,109
Subordinated liabilities - - 1,61,052 - 130 1,61,182
Other financial liabilities - 74,727 73,875 - 22 1,48,625
Total financial liabilities - 75,484 4,67,698 4,21,359 152 9,64,694
Net 3,05,632 5,74,404 (19,752) (4,21,079) 3,33,373 7,72,578
in thousands)
Contractual maturities of assets and Less than 3 3 to 12

On demand 1 to 5 years Over 5 years Total
liabilities months months
Financial assets
Cash and cash equivalents 18,628 - - - - 18,628
Bank balance other than cash and cash - 50,253 60,050 1,50,000 - 2,60,303
equivalents above instruments
Derivative financial 7,544 263 5,624 - 13,432
-
Receivables
(I) Trade receivables - - - - - -
(II) Other receivables - - - - - -
Loans - - 4,50,920 - - 4,50,920
Investments - - 2,04,540 - 3,18,895 5,23,435
Other financial assets - 4,38,553 11 55 - 4,38,619
Total financial assets 18,628 4,96,350 7,15,784 1,55,679 3,18,895 17,05,337
Derivative financial instruments - 14,039 643 305 - 14,988
Payables
(I) Trade payables
enterprises
(ii) and smalldues
total outstanding enterprises
of 283 - - - 283
-
(II)creditors other than micro
Other payables
enterprises
(ii) and smalldues
total outstanding enterprises
of - - - - -
-
creditors
Debt other than micro
securities 11,921 5,55,699 - 6,36,254
- 68,634
Borrowings (Other than debt securities) - - - - - -
Deposits - - - - - -
Subordinated liabilities - - - 1,61,052 130 1,61,182
Other financial liabilities - - - 96,409 11 96,420
Total financial liabilities - 26,244 69,277 8,13,465 141 9,09,127
Net 18,628 4,70,106 6,46,507 (6,57,786) 3,18,754 7,96,210
in thousands)
45 Key ratios :
I. Debt Equity Ratio : As at March 31, 2022 As at March 31, 2021

Shareholder's Fund
Paid up equity share capital 2,41,579 2,41,579
Add: Reserves and surplus 7,07,852 8,10,287
Total Equity (A) 9,49,431 10,51,866
Debt
Borrowings 6,54,109 6,36,254
Subordinated liabilities 2,35,080 2,16,593
Other financial liabilities - -
Total Debt (B) 8,89,189 8,52,847
Debt equity ratio (B/A) 0.94 0.81
II. Asset cover ratio As at March 31, 2022 As at March 31, 2021
Assets available
Loans and advances 2,86,765 4,50,920
Investments 4,06,999 5,23,435
Stock in trade 41,607 49,814
Investment in property 2,138 2,180
Property, plant and equipment 1,169 2,311
Other financial assets 5,37,033 4,38,619
Derivative financial instruments (net) 219 (1,556)
Trade Receivable - -
Fixed deposit - liened against overdraft/BG facility - -
Total Assets (A) 12,75,929 14,65,723
Debt
Borrowing 6,54,109 6,36,254
Subordinated liabilities (alongwith interest) 2,35,080 2,16,593
Total Debt (B) 8,89,189 8,52,847
Assets cover ratio (A/B) 1.43 1.72

in thousands)
46 Related party transactions
A. List of Related Parties and their relationship
(i) Holding Company

Reliance Capital Limited
(ii) Subsidiaries of Holding Company

Reliance Capital Pension Fund Limited
Reliance General Insurance Company Limited
Reliance Nippon Life Insurance Company Limited
Reliance Health Insurance Limited
Reliance Commercial Finance Limited
Reliance Securities Limited
Reliance Commodities Limited
Reliance Wealth Management Limited
Reliance Money Services Private Limited
Reliance Money Precious Metals Private Limited
Reliance Exchangenext Limited
Reliance Corporate Advisory Services Limited
Quant Capital Private Limited
Quant Broking Private Limited
Quant Securities Private Limited
Quant Investment Services Private Limited
Gullfoss Enterprises Private Limited
Reliance Underwater Systems Private Limited
(iii)Associate Companies of Holding Company

Ammolite Holdings Limited
Reliance Asset Reconstruction Company Limited
Global Wind Power Limited
Reinplast Advanced Composites Private Limited
Reliance Home Finance Limited
(iii) Key management personnel

Mr. Lav Chaturvedi* Director
Ms. Homai Daruwalla Director
Ms. D Vijayalakshmi Director
Mr. Chetan Desai Director
Mr. Bhanu Prakash (w.e.f. 24-Jul-2020)* Manager
Mr. Aman Gudral (w.e.f. 21-Jan-2021)* Director
Mr. Ashish Jagetiya (w.e.f. 24-Jul-2020) Chief Financial Officer
Ms. Tanvi Salunkhe (w.e.f 12-Mar-2021)* Company Secretary
* No transaction taken place during the year

in thousands)
B. Transactions with related parties during the year:
Holding Company Fellow Subsidiaries

Nature of Transaction
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Investment oustanding as on date
Purchase and Redemption of Bonds Purchased

Redemption of MLDs Purchased
(Face Value of Rs. 1,00,000 by 30 quantity) - - 3,788 5,702
Purchase of RARC MLDs

(Face Value of Rs. 1,00,000 by 10 quantity) - - - 1,110

Bonds Redeemed
(Face Value of Rs. 1,00,000 by 145 quantity) - - 22,265 -
Redemption of Reliance Securities Ltd MLD
(Face Value of Rs. 1,00,000 by 2615 quantity) - - 3,39,391 -
(Face Value of Rs. 1,00,000 by 980 quantity) - - - 99,448
(Face Value of Rs. 1,00,000 by 4 quantity) - - - 489
Purchase of Bonds
Purchase of bond (Union Bank)
(Face Value of Rs. 1,00,000 by 1 quantity) - - 1,090
Investment in MLD as on Mar 31, 2022 (Cost - Rs 9,97,754) - - 4,358 -
Purchase of Investments (Mutual Funds) 2101670.41 quantity - - 2,928

Sale of Bonds
Sale of Bonds(Face Value of Rs. 1,00,000 by 450 quan ty) - - 10,125 -
Quant Capital Private Limited
Sale of Monsoon Bonds (Face Value Rs. 1,00,000 By Qty. 1000) - - - 1,00,004
Inter Corporate Deposits Given

Opening balance - - -
Given during the year - - 57,72,000 32,25,000
Recovered during the year - - (57,72,000) (32,25,000)
Closing balance - - - -
Maximum Balance outstanding during the year - - 4,72,000 2,75,000
in thousands)

Inter Corporate Deposits Given

Opening balance - - - -
Given during the year - - 81,79,700 1,45,500
Recovered during the year - - (81,79,700) (1,45,500)
Maximum Balance outstanding during the year - - 1,91,500 60,000
Reliance Wealth Management Limited

Opening balance - - 95,500 1,07,600
Given during the year - - 8,200 11,700
Recovered during the year - - (19,600) (23,800)
Closing balance - - 84,100 95,500
Maximum Balance outstanding during the year - - 95,500 1,07,600
Reliance Money Precious Metals Pvt Ltd

Opening balance - - -
Given during the year - - - 100
Recovered during the year - - - (100)
Maximum Balance outstanding during the year - - - 100
Reliance Money Services Private Limited
(Formerly known as Reliance Money Solutions Private Limited)

Opening balance - - - -
Given during the year - - - 200
Recovered during the year - - - (200)
Maximum Balance outstanding during the year - - - 200

Opening balance - - 50,000 -
Given during the year - - 1,50,000 50,000
Recovered during the year - - (2,00,000) -
Closing balance - - - 50,000
Maximum Balance outstanding during the year - - 1,05,000 50,000
in thousands)
Receipts / Income
Interest on Inter Corporate Deposits
Reliance Securities Limited - - 12,285 8,665

Reliance Commodities Limited - - 3,311 1,113
Reliance Money Precious Metals Pvt Ltd - - - 1
Reliance Money Solutions Private Limited - - - 1
Reliance Wealth Management Limited - - 10,023 11,489
Reliance Asset Reconstruction Company Limited - - 1,073 99
Dividend Income accrual on Preference Share Capital

Management Fess Income

Reliance Securities Limited 1,44,075 90,000
Payments / expenditures
Dividend Exp on Preference Shares

Reliance Capital Limited 18,486 20,219 - -
IT Expenses
Reliance Capital Limited - 227 - -
Rent & electricity expense

Other Expenses
Reliance Securities Limited - - 161 -
Brokerage Expenses

Staff & KMP medical / life insurance premium

Reliance General Insurance Company Ltd - - 491 872
Reliance Nippon Life Insurance Company Ltd - - 515 -
Receivable / (Payable)
Reliance Securities Limited - - 4,15,170 3,38,848
Reliance Nippon Life Insurance Company Limited - - 482 408
Reliance General Insurance Company Limited - - 8 29
Quant Capital Private Limited - - 1,00,005 1,00,005
in thousands)
Closing Balances of Bonds, Debetures,Prefernce Share & Receivables
Assets
Reliance Capital Limited - Investment in MLD 8,000 33,000 - -
Reliance Home Finance Limited Investment in MLD as on Mar 31,
2022
(Cost - Rs 81,25,000 Less : Provision Rs 50,00,000) - - 3,125 3,125
Reliance Asset Reconstruc on Company Limited - - - 3,574
Reliance Securities Limited (Investment in Preference Shares
including Dividend Receivable) - - 3,33,505 3,18,875
Liability
Reliance Capital Limited
(Preference Share Capital including Dividend Payable) 2,35,080 2,16,593 - -
C. Transactions with Key management personnel during the year:
Nature of Transaction March 31, 2022 March 31, 2021
Directors sitting fees

Homai Daruwalla - Independent Director 501 480
Mr. Chetan Desai- Independent Director 501 436
Ms. D Vijayalakshmi - Independent Director 501 480
Reimbursement of Expenses
Mr. Ashish Jagetiya (Chief Financial Officer) 42 95
Mr. Viral Sarvaiya (Company Secretary) - 2
Ms. Komal Shah - 1
Ms. Ratnaprabha Chaudhari - 30
Ms. Tanvi Salunkhe (Company Secretary) 3 0
47 Information in accordance with the requirements of Paragraph 19 of Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Direction, 2016
Liabilities side :
Amount Outstanding Amount overdue
Particulars As at March 31, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021
(1) Loans and advances availed by the non- banking financial Company
inclusive of interest accrued thereon but not paid:
(a) Debenture
(other than falling within the meaning of public deposits):
Secured 6,54,109 6,36,254 - -
Un-Secured - - - -
(b) Deferred Credits - - - -
(c) Term Loans - - - -
(d) Inter-corporate loans and borrowing - - - -
(e) Commercial Paper - - - -
(f) Other Loans 2,35,080 2,16,593 - -
Assets Side :
Amount Outstanding
Particulars As at March 31, As at March 31,
2022 2021
(2) Break-up of Loans and Advances including bills receivables [other than those included in (4)
below]:
(a) Secured - -
(b) Unsecured 2,86,765 4,50,920
(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 - -
(ii) Stock on hire including hire charges under sundry debtors:

(a) Assets on hire - -
(b) Repossessed Assets - -
(iii) Other loans counting towards AFC activities

(a) Loans where assets have been repossessed - -
(b) Loans other than (a) above - -
(4) Break-up of Investments :

(i) Quoted
(i) Shares
(a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds 73,474 2,04,540
(iv) Government Securities - -
(v) Others - -
(ii) Unquoted
(i) Shares
(a) Equity - -
(a) Preference 3,33,505 3,18,875
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Others 20 20
(5) Borrower group-wise classification of assets financed as in (2) and (3) above :
Secured Unsecured Total
Category As at March 31, As at March As at March 31, As at March 31, As at March 31, As at March 31,
2022 31, 2021 2022 2021 2022 2021
1 Related Parties
(a) Subsidiaries - - - - - -
(b) Companies in the same group - - 75,690 1,45,500 75,690 1,45,500
(c) Other related parties - - - - - -
2 Other than related Parties - - 2,11,075 3,05,420 2,11,075 3,05,420
Total - - 2,86,765 4,50,920 2,86,765 4,50,920
(6) Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted excluding stock in
trade)
Market value/Fair value or NAV Book Value (Net of provisions)

Category
As at March 31, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021
1 Related Parties
(a) Subsidiaries - - - -
(b) Companies in the same group 3,33,505 3,18,875 3,33,505 3,18,875
(c) Other related parties - - - -
2 Other than related Parties 73,494 2,04,560 73,494 2,04,560
Total 4,06,999 5,23,435 4,06,999 5,23,435
(7) Other Information

Particulars
2022 2021
(i) Gross Non-Performing Assets
(a) Related parties - -
(b) Other than related parties 4,04,375 4,06,503
(ii) Net Non-Performing Assets
(a) Related parties - -
(b) Other than related parties 33,370 1,75,307
(iii) Assets acquired in satisfaction of debt - -
48 Disclosure of loans / advances and investments pursuant to Regulation 53 of the Securities and Exchange Board of India (Listing Obligation And Disclosure
Requirements) Regulations, 2015.
Outstanding balance Maximum balance outstanding

Particulars
As at March 31, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021
i) Loans and advances in the nature of loans to subsidiaries - - - -
ii) Loans and advances in the nature of loans to associates

(a) Reliance Wealth Management Limited 84,100 95,500 95,500 1,07,600
(b) Reliance Asset Reconstruction Company Limited - 50,000 50,000 50,000
iii) Loans and advances in the nature of loans to firms / companies in which
directors are interested - - - -
iv) Investments by lonee in the shares of parent company and subsidary

Company when the company has made a loan or advance in the nature of
loan. - - - -
* Loans and advances doesnot include Bonds and debentures
49 Disclosure of details as required by the para 9.6 of Reserve Bank of India circular no. RBI/2014-15/299 DNBR (PD) CC.No.002/03.10.001/2014-15, dated
November 10, 2014 to the extent applicable to the Company.
a Registra on/ licence/ authorisa on obtained from other ﬁnancial sectorregulators

Regulators Type Number Reference
(i) Reserve Bank of India Registration No. N-13.01821
(ii) Ministry of Corporate Affairs Registration No. U65990MH2005PLC155675
b Ra ngs assigned by credit ra ng agencies and migra on of ra ngsduring the year

Rating Agency Borrowing Type Rating
(i) CARE Market Linked Debentures of 93.60 crore CARE PP-MLD B+
(Credit watch with developing implications)
c No Penalties levied by the regulators upon the Company.
d Information viz., area, country of operation and joint venture partners with regard to Joint Ventures and Overseas Subsidiaries
Items As at March 31, 2022 As at March 31, 2021
(i) Area, country of operation India India
(ii) Joint Venture partners with regard to joint ventures and overseas subsidiaries None None
e Capital
1 CRAR 45.36% 48.18%
2 CRAR - Tier I Capital (%) 30.94% 34.93%
3 CRAR - Tier II Capital (%) 14.42% 13.25%
f Exposure to Capital Market

Category As at March 31, 2022 As at March 31, 2021
(i) direct investment in equity shares, convertible bonds, convertible debentures and units of
equity-oriented mutual funds the corpus of which is not exclusively invested in corporate
debt; - -
(ii) advances against shares / bonds / debentures or other securities or on clean basis to 70,627 72,755
individuals for investment in shares (including IPOs / ESOPs), convertible bonds, convertible
debentures, and units of equity-oriented mutual funds;
(iii) advances for any other purposes where shares or convertible bonds or convertible debentures 47 47
or units of equity oriented mutual funds are taken as primary security;
(iv) advances for any other purposes to the extent secured by the collateral security of shares or
convertible bonds or convertible debentures or units of equity oriented mutual funds i.e.
where the primary security other than shares / convertible bonds / convertible debentures /
units of equity oriented mutual funds does not fully cover the advances;
- -
(v) secured and unsecured advances to stockbrokers and guarantees issued on behalf of
stockbrokers and market makers; - -
(vi) loans sanctioned to corporates against the security of shares / bonds / debentures or other
securities or on clean basis for meeting promoter's contribution to the equity of new
companies in anticipation of raising resources; - -
(vii) bridge loans to companies against expected equity flows / issues - -
(viii) all exposures to Venture Capital Funds (both registered and unregistered) - -
Total Exposure to Capital Market 70,675 72,802
g Exposure to Real Estate

Category As at March 31, 2022 As at March 31, 2021
A. Direct Exposure
(i) Residential Mortgages - -
(ii) Commercial Real Estate - -
(iii) Investments in Mortgage Backed Securities - -
B. Indirect Exposure - -
Total exposure to Real Estate sector - -
h Remuneration of Directors
Director sitting fees 1,504 1,395
i Movement of NPA
Opening Closing
Particulars Additions Deletions
April 01, 2020 March 31, 2021
Movement of Gross NPA 72,755 1,85,128 - 2,57,883
Movement of provisions - (2,32,653) - (2,32,653)
Movement of Net NPA 72,755.16 (47,525.16) - 25,230
Opening Closing
Particulars Additions Deletions
April 01, 2021 March 31, 2022
Movement of Gross NPA 2,57,883 1,69,370 (22,878) 4,04,375
Movement of provisions (2,32,653) (1,38,352) - (3,71,005)
Movement of Net NPA 25,230 31,018 (22,878) 33,370
j Concentration of advances
Total Advances to top four NPA accounts 2,76,200 1,58,522
k Concentration of advances
Total Advances to twenty largest borrowers 2,86,765 4,50,920
Percentage of advances to twenty largest borrowers to total advances of the Company 100% 100%
l Concentration of Exposures
Total Exposure to twenty largest borrowers 2,86,765 4,50,920
Percentage of exposure to twenty largest borrowers to Total Advances of the Company 100% 100%
m Break up of Provision and contingencies shown under the head Expenditure in Statement of Profit & Loss
(a) Provision for depreciation/ (appreciation) on investments/ written-off - -
(b) Provision / (reversal) towards NPA & doubtful debts 1,41,277 1,50,242
(c) Provision made towards Income tax - -
(d) Contingent provision / (reversal) against standard assets (46) (1,291)
(e) Provision for repossessed stock - -
n Customer Complaints (as certified by Management)

(i) No. of complaints pending at the beginning of the year - -
(ii) No. of complaints pending received during the year - -
(iii) No. of complaints redressed during the year - -
(iv) No. of complaints pending at the end of the year - -
Reliance Financial Limited ( in thousands)
50 Additional notes as per revised schedule III amended effective from April 01, 2021
I Details of Immovable Properties whose title deeds are not held in name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee).
Whether title deed holder is a promoter, Reason for not being held
Property
Title deeds held in the director or relative# of in the name of the
Relevant line item in the Balance sheet Description of item of property Gross carrying value held since
name of promoter*/director or employee of Company (also indicate if
which date
promoter/director in dispute)
NIL
II Revaluation of Intangible assets and/or PPE (including Right-of-Use Assset) and Fair Value of Investment Property
The Company has not revalued its Intangible assets and PPE (including Right-of-Use Assset) during the year. The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017.
III Loans or Advances granted to promoters, directors, KMPs and the related parties
No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person except as disclosed in Note No. 7.
IV Capital Work-in-progress: i) CWIP Ageing Schedule ii) CWIP copmletion schedule
CWIP aging schedule

CWIP Less than 1 year 1-2 years 2-3 years More than 3 years Total*
Projects in progress
Projects temporarily suspended NIL
*Total shall tally with CWIP amount in the balance sheet
CWIP completion schedule

CWIP Less than 1 year 1-2 years 2-3 years More than 3 years
NIL
V Intangible assets under development:

(i) Intangible assets under development aging schedule
Intangible assets under development Less than 1 year 1-2 years 2-3 years More than 3 years Total*
Projects in progress
Projects temporarily suspended NIL
* Total shall tally with the amount of Intangible assets under development in the balance sheet.
(ii) Intangible assets under development completion schedule **
Intangible assets under development Less than 1 year 1-2 years 2-3 years More than 3 years
NIL
**Details of projects where activity has been suspended

1 to 51 shall be given separately.
VI The Company does not have any benami property under the Benami Transactions (Prohibition) Act, 1988)
VII The Company does not have any borrowings from banks or financial institution on security of current assets and accordingly, no quaestion of willfull defaulter applicable to the company during the year.
VIII Information in respect of transactions with companies struck off under section 248 of companies Act, 2013.
Relationship with the

Nature of transactions with struck-off Struck off Company, if
Name of struck off Company Company Balance outstanding any, to be disclosed
NIL
IX No cases of charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
X The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
XI Ratios
March 31, 2022 March 31, 2021

a Current Ratio NA NA
b Debt-Equity Ratio, 0.94 0.81
c Debt Service Coverage Ratio, NA NA
d Return on Equity Ratio* -0.11 0.01
e Inventory turnover ratio, NA NA
f Trade Receivables turnover ratio NA NA
g Trade payables turnover ratio, NA NA
h Net capital turnover ratio NA NA
j Net profit ratio* -32.73 4.14
* The ratio has been down compare to previous year on account of lossess incurred in curren year.
XII The Company doesn't not have any arrangement in terms of section 230 to 237 of companies act 2013
XIII The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign
entities/Intermediaries during the year.
XIV The Company has not recorded in the books of accounts, that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
XV Details in respect of CSR Activities
(a) amount required to be spent during the
746 1,742
year,
(b) amount of expenditure incurred, 746 1,742
(c) shortfall at the end of the year, - -
(d) total of previous years shortfall, - -
(e) reason for shortfall, NA NA
Promoting education, including special Promoting education, including
education and employment enhancing special education and employment
vocation skills, specially among enhancing vocation skills, specially
children, women, elderly and the among children, women, elderly and
(f) nature of CSR activities, differently abled and livelihood the differently abled and livelihood
enhancement projects. enhancement projects
Yoga Workshop and other social

welfare activities.
(g) details of related party transactions, NA NA
(h) If provision is made with respect to a
liability incurred by entering into a contractual
obligation, the movements in the provision
during the year shall be shown separately. NA NA
XVI Details pertaining to Crypto Currency or Virtual Currency

Particulars Amount
(a) profit or loss on transactions involving
Crypto currency or Virtual Currency,
(b) amount of currency held
Nil
(c) deposits or advances from any person for
the purpose of trading or investing in Crypto
Currency or virtual currency
51 Previous year figures
Figures of previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
Sd/- Sd/- Sd/-

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Financial Statement

To the Members of Reliance Financial Limited

Report on the Audit of the Financial Statements

Basis for opinion

Key Audit Matters

Responsibilities of management for the financial statements

Report on Other Legal and Regulatory Requirements

2. As required by Section 143(3) of the Act, we report that:

For Pathak H. D. & Associates LLP

(i) In respect of its Property Plant and Equipment:

(e) According to information, explanations and representation given to us by the management,no

(c) According to the information, explanations and representation given to us by the

For Pathak H. D. & Associates LLP

Management’s Responsibility for Internal Financial Controls

Inherent Limitations of Internal Financial Controls with reference to financial statements

For Pathak H. D. & Associates LLP

Total Assets 19,80,158 19,90,139

LIABILITIES AND EQUITY

Total Liabilities and Equity 19,80,158 19,90,139

Significant accounting policies and 1 to 51

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A Revenue from operations

Total Revenue from operations 3,09,896 1,19,351

B Other Income 29 3,047 28,971

C Total Income (A + B) 3,12,943 1,48,322

(VI) Other Comprehensive Income/(loss)

Items that will not be reclassified to profit or loss

Earnings per equity share (Amount in ) 38

Significant accounting policies and 1 to 51

As per our attached report of even date

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Adjustments for increase / (decrease) in operating liabilities:

B. CASH FLOW FROM INVESTING ACTIVITIES :

C. CASH FLOW FROM FINANCING ACTIVITIES :

NET INCREASE/(DECREASE) IN CASH AND BANK BALANCES 2,87,004 (2,90,307)

Cash and cash equivalents comprise

Particulars As at March 31, 2022 As at March 31, 2021

Cash and cash equivalent 3,05,632 18,628

Cash and cash

3 Figures in brackets indicate cash outflow.

The accompanying notes form an integral part of the financial statements

As per our attached report of even date

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A Equity share capital

The accompanying notes form an integral part of the financial statements

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2.01 Basis of preparation

(ii) Historical cost convention

2.02 Financial instruments

2.03 Financial assets

(iii) Modification of loans

(iv) Derecognition other than on a modification

2.04 Financial liabilities

Market linked debentures (MLDs)

2.05 Derivatives and hedging activities

(i) Derivatives that are not designated as hedges :

2.06 Revenue Recognition

(i) Interest income

(ii) Dividend income