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Notes to Accounts of Equitas Holdings Ltd.

Mar 31, 2022

As per the Scheme of Amalgamation explained in note no. 41.1, all the assets held by the Company, including its investments in Equitas Technologies Private Limited ("ETPL") has to be transferred to and vested in the Bank. Since ETPL is not engaged in financial services, the Company is required to fully divest its investment in ETPL as mandated by RBI.

Accordingly, the Board of Directors of the Company in its Meeting held on January 07, 2022, approved sale of its entire shareholding in its Subsidiary, ETPL i.e. 2,50,00,000 equity shares. The Company got an offer from, prospective buyer for purchasing ETPL in total for a consolidated consideration of '' 800.00 lakhs, out of which the Company''s share of consideration amounts to '' 796.94 lakhs

The Board in its Meeting held on May 16, 2022 accepted the offer from the prospective buyer and approved the sale of the entire investment in ETPL to the prospective buyer subject to the completion of due diligence process, finalisation and execution of necessary agreements and documents.

Accordingly, the said Investment has been classified as held for sale. Pursuant to such classification an amount of '' 835.06 lakhs being the difference between the carrying amount and fair value less costs to sell has been accounted as an impairment loss in the statement of profit & loss.

Equitas Development Initiatives Trust (EDIT) is a public charitable trust registered on February 4, 2008. The Company is the author of the trust. EDIT, being the CSR implementing agency of the Group (the Company and its subsidiary, Equitas Small Finance Bank Limited), runs seven schools across Tamilnadu as part of the CSR activities of the Group. The Company acquired land, created infrastructure and permitted the trust to run the schools under an operating lease agreement.

Considering the Scheme of Amalgamation as stated in note no. 41.1, the Board of Directors in their meeting held on July 16, 2021 approved the transfer of immovable properties to EDIT without consideration. Further, the cost of transfer viz., stamp duty, registration charges and such other charges as may be applicable may also be borne by the Company for giving effect to the above mentioned transfer. This has been approved by the shareholders of the Company through postal ballot, results of which were declared on December 31,2021.

Considering the above facts, it is considered appropriate to measure these immovable properties at "Nil" value, being transfer without consideration. Accordingly, the carrying cost of these immovable properties as at 31st December 2021 of '' 5,319.16 lakhs and estimated cost of transfer of '' 800 lakhs is charged to statement of profit & loss as an exceptional item.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10. Each holder is entitled to one vote per equity share. Dividends are paid in Indian Rupees. Dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend. Repayment of capital will be in proportion to the number of equity shares held.

During the year, the company allotted Nil (Previous Year 120) Equity Shares of '' 10 each to eligible employees pursuant to exercise of options under the Employee Stock Options Scheme at applicable premiums.

a. Securities premium reserve

The Securities premium received during the year represents the premium received towards allotment of Nil shares (Previous year 120) shares under ESOP Scheme. This balance in the reserve shall be utilised in accordance with the provisions of Section 52 of the Companies Act towards issuance of fully paid bonus shares, write-off of preliminary expenses, commission / discount expenses on issue of shares / debentures, premium payable on redemption of redeemable preference shares / debentures and buy back of its own shares / securities under Section 68 of the Companies Act.

c. Retained Earnings

The amount that can be distributed by the Company as dividends to its Equity Shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported below are not distributable in entirety and includes non distributable items including unrealised gains, notional gains and any change in carrying amount of an asset or of a liability on measurement of the asset or the liability at fair value, etc.

e. Impairment reserve

The Reserve Bank of India, on March 13, 2020 notified Circular no: RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22.10.106/2019-20 Implementation of Indian Accounting Standards requiring the Company to create an impairment reserve to the extent of shortfall in ECL provision as compared to the provision as required by Income Recognition and Asset Classification and Provisioning norms. The Company has performed this assessment as at March 31, 2022 and as at 31st March 2021, and the provision required as per Income Recognition and Asset Classification and Provisioning norms is found to be '' NIL. Accordingly, no impairment reserve is created. Refer Note 52 for further details.

The Company in accordance with its CSR Policy has implemented CSR activities, through Equitas Development Initiatives Trust and Equitas Healthcare Foundation, public charitable trusts established by the Company.

The Board of Directors have approved a total CSR contribution of ''40 lakhs for the year ended March 31, 2022, of which ''30 lakhs(Previous Year ''18.45 lakhs) to Equitas Development Initiatives Trust and '' 10 lakhs (Previous year : '' 25.76 lakhs) to Equitas Health Care foundation. (Refer Note 39.2)

33 Expenditure and income in foreign currency : NIL34 Lease - as lessee

Lease disclosure under Ind-AS 116 for the year ended 31st March 2022

A. This note explains the impact of the adoption of Ind-AS 116 Leases on the financial statements

B. The company has taken premises on operating leases for office. The lease generally are for a term of 33 months with a renewal option for 22 months.

37 Retirement benefit plan

37.1 Defined contribution plan

The Company makes Provident Fund contributions to State administered fund for qualifying employees. The Company is required to contribute a specified percentage of the payroll costs to the Fund. The Company recognised ''5.76 lakh (For the year ended March 31, 2021: ''4.78 lakh) towards Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to the fund by the Company is at rates specified in the rules of the scheme.

41.1 The Board of Directors of the Company and the Equitas Small Finance Bank (Bank) at their respective Meetings held on July 26, 2021 approved a Scheme of Amalgamation between the Company, the Bank and their respective shareholders, contemplating amalgamation of the Company with the Bank under applicable provisions of the Companies Act 2013. The Scheme was designed to achieve the RBI licensing requirement of dilution of promoter (the Company) shareholding in the Bank and minimum public shareholding (MPS) requirement prescribed by SEBI Regulations in a manner that is in the best interests of and without being prejudicial to the Company, the Bank, their respective shareholders or any other stakeholders.

Subsequently, the Bank achieved the MPS through a Qualified Institutions Placement (QIP) of its shares, in February 2022, after obtaining the necessary approvals. QIP comprised of issue of 10,26,31,087 equity shares of '' 10/ each at premium of ''43.59 per share, aggregating to a fund raise of ''55,000 lakhs. As a result of this QIP, the public shareholding in ESFBL increased from 18.70% to 25.37%, thereby complying with the Minimum Public Shareholding (MPS) requirements prescribed by SEBI Regulations.

Consequently, the aforesaid Scheme was revised to include the change in capital structure arising from QIP as well as the necessary change in objects of the Scheme. The Scheme, so revised was approved by the Boards of the Company and the Bank in their respective Meetings held on March 21, 2022. The Scheme has been filed with the Stock Exchanges and RBI for necessary approvals/ sanctions.

Upon coming into effect of this Scheme and in consideration of the amalgamation of Company with the Bank, the Bank, without any further application, act or deed, shall issue and allot to each of the equity shareholders of the Company as on the Record Date defined in the Scheme, 231 equity Shares of ''10/- each credited as fully paid up of the Bank, in respect of every 100 Equity Shares of ''10/- each fully paid up held by them in the Company.

42 Legal claims

The Company operates in a regulatory and legal environment by nature, there are various litigation, arbitration and regulatory proceedings in the ordinary course of its business. The Company has formal controls and policies for managing legal claims.

i. Matters wherein management has concluded the Company''s liability to be probable have accordingly been provided for in the books (included under Note 20).

ii. Matters wherein management has concluded the Company''s liability to be possible have accordingly been disclosed in Note 41.

iii. Matters wherein management is confident of succeeding in these litigations and have concluded the Company''s liability to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process.

43 Capital

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of the local banking supervisor, Reserve Bank of India (RBI) of India. The adequacy of the Company''s capital is monitored using, among other measures, the regulations issued by RBI.

Company has complied in full with all its externally imposed capital requirements over the reported period.

43.1 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 core investment activity and to maximize shareholder value.

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 reviewed by the Board.

44.4 Valuation methodologies of financial instruments not measured at fair value

44 Fair value measurement

44.1 Valuation principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.

44.2 Valuation governance

The Company''s fair value methodology and the governance over its models includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only.

44.4.1 Loans and advances to customers

The fair values of loans and receivables are estimated by discounted cash flow models that incorporate assumptions for credit risks, probability of default and loss given default estimates. Credit risk is derived from market observable data. Where such information is not available, the Company uses historical experience and other information used in its collective impairment models.

44.4.2 Off balance sheet items

Estimated fair values of off-balance sheet positions are based on market prices for similar instruments or on discounted cash flow models, as explained above, which incorporate the credit risk element through the discount factor.

44.4.3 Investment in subsidiary

The company being a core investment company has no separate business operations on a standalone basis. The equity shares of the Company are listed in stock exchanges in India and it is estimated that the value of the shares of the Company are derived from the operations in its investments in subsidiary. Accordingly, the management has considered the value of its shares in active market as the value of investment in its subsidiary having operations.

45 Risk Management Framework

The Company is a Core Investment Company (CIC) and its operations are limited to being a CIC. The risks therefore relate to investments made in its Subsidiaries and other investments. The operations of each of the subsidiaries, the risks faced by them and the risk mitigation tools followed by them to manage these risks are reviewed periodically by the Audit Committees and the Boards of the respective Subsidiaries and other investments.

The Company always regard that managing the risks that affect its business as a fundamental activity, as they influence performance, reputation and future success. Effective risk management involves taking an integrated and balanced approach to risk and reward, and assists in achieving objectives of mitigating potential loss or damage and optimizing financial growth opportunities. Risk management framework of the Company is aimed at aligning capital to investment strategy, to protect Company''s financial strength, reputation and to ensure support to various investment activities while enhancing shareholder value.

The company has a well-established risk reporting and monitoring framework. This provides the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified Key Risk Indicators and are aligned to the overall company''s risk appetite framework approved by the board. The company also developed such risk reporting and monitoring mechanism. The company identifies and monitors risks periodically. This process enables the company to reassess the top critical risks in a changing environment that need to be focused on.

45.1 Risk Management Governance

Risk management is the responsibility of the Board of Directors, which approves risk policies and the delegation matrix. The Board is supported by various management committees as part of the Risk Governance framework. The Company operates within overall limits set by the Board and Committees to whom powers are delegated by the Board.

The Audit Committee of the Board assists the Board in carrying out its oversight responsibilities as they relate to the company''s financial and other reporting practices, internal control, and compliance with laws, regulations, and ethics. From risk management perspective, it review the adequacy of Company''s risk management policies, processes and report the matter to the Board of Directors.

45.2 Liquidity and Fund Management

Liquidity risk is defined as the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the company on acceptable terms. The company has developed internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and the availability of unencumbered receivables which could be used to secure funding by way of assignment if required. Refer Note 46 for the summary of maturity profile of undiscounted cashflows of the Company''s financial assets and financial liabilities as at reporting period.

45.3 Concentration of Risk/Exposure

Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such counterparties are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet contractual obligations jess uniformly affected by changes in economic, political or other conditions. The Company''s investments consist of investment in equity shares of subsidiaries and the management believes that it will not be affected by changes in regulatory, economic, political or other conditions.

45.4 Market Risk Management

Market Risk may be defined as the possibility of loss to a Company caused by changes in the market variables such as interest rates, credit spreads, equity prices, etc. The market risk for the Company is governed by ''Market Risk Policy'' and ''Treasury & Investment Policy'', which are approved by the Board. These policies ensure that transactions in debt and capital markets are conducted in accordance with acceptable business practices and are as per the extant regulatory guidelines. Also refer note 47.

45.5 Credit risk and impairment assessment

Impairment risk of investment refers to the deterioration in value of investments in subsidiaries / group companies through operational and credit risks. The Company being a CIC company is exposure to credit risk and impairment risk of investments and loans to counter parties. Counter party exposures are reviewed periodically by the management for credit risk / impairment risk and are approved by the management.

As per Indian Accounting standard Ind AS 109 Non-banking financial institutions are required to move from a standardized and regulatory approach to Expected Credit Loss model for recognizing an impairment allowance on their financials assets. The Company records allowance for expected credit losses for all loans, other debt financial assets not held at FVTPL, together with loan commitments and financial guarantee contracts. Equity instruments are not subject to impairment under Ind AS 109. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months'' expected credit loss (12mECL)). The 12mECL is the portion of LTECLs that represent the ECLs that result from

default events on a financial instrument that are possible within the 12 months after the reporting date. Both LTECLs and 12mECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

The Company performs an assessment, at the end of each reporting period, of whether a financial instrument''s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument.

Based on the above process, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3, as described below:

Stage 1: When loans are first recognised, the Company recognises an allowance based on 12mECLs. Stage 1 loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.

Stage 2: When a loan has shown a significant increase in credit risk since origination, the Company records an allowance for the LTECLs. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3.

Stage 3: Loans considered credit-impaired. The Company records an allowance for the LTECLs.

45.6 Computation of ECL

The Company calculates ECLs to measure the expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due in accordance with the contract and the cash flows that expected to be received.

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

a) Probability to Default

Probability of default (PD) is defined as the probability of whether the borrower will default on their obligations in the future. It is an unbiased estimate on the likelihood of the loan not being repaid by the borrower within a particular time. The Probability of Default is computed based on Company''s assessment of the credit history of the borrower/ investment. The accounts / investments which are more than 90 DPD or have a significant rating downgrade are considered as default.

Probability of Default (both 12m and LTECL) is computed based on rating migration and is assessed considering the Company''s past experience and also inputs / benchmarks from external credit rating agencies.

b) Exposure at Default

The Exposure at Default is an estimate of the exposure at a future default date (in case of Stage 1 and Stage 2), taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdown on committed facilities, and accrued interest from missed payments. In case of Stage 3 loans EAD represents exposure when the default occurred.

c) Loss Given Default

The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the Exposure at Default (EAD). The Company computes Loss Given Default based on the historical recovery experience.

45.7 Forward Looking Information

In its ECL models, the Company relies on a broad range of forward looking information as economic inputs, such as Gross Domestic Product (GDP) and Index of Industrial Production.

The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such differences are significantly material.

48 Share based payments

During the year ended March 31, 2014, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2014 (ESOP Scheme 2014) effective from July 18, 2014. Under the plan, the Company was authorized to issue upto 10,500,000 Equity Shares of ''10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2012 has been transferred and made available for grant under the new scheme.

During the year ended March 31, 2015, pursuant to the issue of bonus shares for the existing shareholders, the Company granted 2 additional options for every 1 option outstanding to be exercised as on the date of bonus issue. Further, the exercise price for each option was been reduced to one-third of the original exercise price determined at the grant date.

During the year ended March 31, 2016, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2015 (ESOP Scheme 2015) effective from September 7, 2015. Under the plan, the Company was authorized to issue up to 22,200,000 Equity Shares of ''10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2014 has been transferred and made available for grant under the new scheme.

During the year ended 31st March 2020, 4,70,060 stock options were granted to its eligible employees under Equitas Employees Stock Option Scheme, 2015 (ESOP Scheme 2015) at an exercise price of ''115 per option. The aforesaid grant was approved by Nomination Remuneration & Governance committee at its Meeting held on August 02, 2019.

During the year ended March 31, 2020, 98,86,251 number of options issued under the ESOP Scheme 2015 were replaced with 3,34,87,873 options issued, under the ESFB ESOP 2019 issued by its subsidiary (Equitas Small Finance Bank Limited), to employees of Equitas Small Finance Bank and also Equitas Holdings Limited.

49 The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

50 Additional disclosures/ Regulatory information as required by Notification No. GSR 207(E) dated 24.03.2021 (To the extent applicable):

50.1 Compliance with number of layers of companies:

No layers of companies has been established beyond the limits prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

50.2 Relationship with Struck off Companies:

The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2022 and 31 March 2021.

50.3 Undisclosed income:

Details of transactions not recorded in the books of account that has been surrendered/ disclosed as income during the year in the tax assessments '' Nil (Previous year '' Nil)

50.4 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2022 and 31 March 2021.

51 Additional Information as required by Reserve Bank of India, Master Direction - Core Investment Companies (Reserve Bank) Directions, RBI/DNBR/2016-17/39, Master Direction DNBR. PD. 003/03.10.119/2016-17, August 25, 2016

As mentioned in the basis of preparation detailed in Note 2 to these standalone financial statements, the Company has adopted Indian Accounting Standards (''Ind AS'') notified under Section 133 of the Companies Act 2013 (''the Act'') read with Companies (Indian Accounting Standards) Rules, 2015 as amended, from April 1, 2018 and consequently these standalone financial statements for the year ended March 31, 2022 has been prepared under Ind AS.

The regulatory disclosures contained in Note 43.2 and Note 51 are required to be disclosed in the financial statements by the Company in accordance with the requirements of the Master Directions for Non-Banking Financial Company - Systemically Important Non-Deposit taking Company Directions, 2016 dated September 1, 2016 read with the applicable guidance / regulations issued by the RBI in this regard.

55 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements. The financial statements have been approved for issue on May 28, 2022 by the Board of Directors of the Company.

56 Prior period figures have been regrouped/ reclassified wherever necessary.


Mar 31, 2021

During the year ended March 31, 2021, the Company had offered for sale, a part of its investment in its subsidiary, the Equitas Small Finance Bank. These investment having gross carrying value of '' 6,595.09 lakhs were sold for a consideration of '' 23,760 lakhs (7,20,00,000 equity shares at '' 33 per share). The resulting profit net of expenses of '' 15,681.57 lakhs has been disclosed as "Profit from sale of Investment" under the head "Revenue from Operations" in the statement of profit and loss . (Also refer note 8.c)

Impairment loss allowance of '' 868 lakhs (March 31, 2020 - '' 568 lakhs) represents impairment on investments made in Equitas Technologies Private Limited.

As part of Small Finance Bank licensing guidelines, Reserve Bank of India (RBI) has mandated listing of shares of the Bank within 3 years from the date of commencement of operations (i.e., from 5th September 2016). In the absence of Securities Exchange Board of India''s ("SEBI") approval to a scheme of arrangement, which would have resulted in the listing of the Bank''s shares, and the consequent non-compliance with the relevant listing condition, RBI vide its letter dated September 06, 2019 had imposed regulatory action on the Bank, by way of restriction on opening of new branches and on the remuneration of the MD & CEO of the Bank, till further advice. (However, in December 2019, the Bank obtained specific approval of the RBI for opening 240 banking outlets).

During year ended March 31, 2021, the Bank successfully completed Initial Public Offer (IPO) of its shares comprising issue of 8,48,48,484 equity shares of '' 10/ each at premium of '' 23 per share, thereby raising '' 280 crore and an offer for sale of 7,20,00,000 equity shares @ '' 33 per share, by the Company. The equity shares of the Bank got listed on November 2, 2020 on National stock exchange (NSE) and BSE Ltd, thereby complying with the licensing condition of listing the shares of the Bank. Subsequently, RBI lifted the previously mentioned restrictions vide its letter dated November 9, 2020. Consequent to the primary issue and sale of shares under IPO, the shareholding percentage of the Company in the Bank has come down from 95.49% to 81.98%.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10. Each holder is entitled to one vote per equity share. Dividends are paid in Indian Rupees. Dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend. Repayment of capital will be in proportion to the number of equity shares held.

The Board of Directors approved and paid an interim dividend of Re.1/- per equity share of '' 10/- each fully paid up of the Company to those equity shareholders whose names appeared in the register of members as on August 19, 2020 being the record date fixed for the purpose and second interim dividend of '' 2/- per equity share of '' 10/-each fully paid up of the Company to those equity shareholders whose names appeared in the register of members as on February 13, 2021 being the record date fixed for the purpose. The Board has recommended the adoption of the aforesaid interim dividend of '' 3 per equity share as final dividend for FY 2020-21.

During the year, the company allotted 120 (Previous Year 3,28,497) Equity Shares of Rs 10 each to eligible employees pursuant to exercise of options under the Employee Stock Options Scheme at applicable premiums.

Impairment reserve

The Reserve Bank of India, on March 13, 2020 notified Circular no: RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22.10.106/2019-20 Implementation of Indian Accounting Standards requiring the Company to create an impairment reserve to the extent of shortfall in ECL provision as compared to the provision as required by Income Recognition and Asset Classification and Provisioning norms. The Company has performed this assessment as at March 31, 2021 and as at 31st March 2020, and the provision required as per Income Recognition and Asset Classification and Provisioning norms is found to be '' NIL. Accordingly, no impairment reserve is created. Refer Note 45 for further details.

Adjustment on account of modification of ESOP Scheme 2015

During the previous year ended March 31, 2020, 98,86,251 number of options issued under the ESOP Scheme 2015 were replaced with 3,34,87,873 options issued, under the Equitas ESOP Scheme 2019 issued by its subsidiary (Equitas Small Finance Bank Limited), to employees of Equitas Small Finance Bank and also Equitas Holdings Limited. Accordingly, there has been a reversal of retained earnings and securities premium reserve of '' 3,484.72 lakhs and '' 4,124.83 lakhs respectively, and a cumulative reversal of investment in subsidiary (Equitas Small Finance Bank Limited) of '' 7,609.55 lakhs.

The Board of Directors have approved a total CSR contribution of '' 44.21 lakhs for the year ended March 31, 2021, of which '' 18.45 lakh (Previous Year '' 33.41 lakh) to Equitas Development Initiatives Trust and '' 25.76 lakhs (Previous year : Nil) to Equitas Health Care foundation. (Refer Note 34.2)

Disclosure in accordance with Section 182 of the Companies Act, 2013

The Company incurred Rs. Nil (March 31, 2020: Rs. Nil) as contribution to political parties, etc.

Disclosure in accordance with Section 183 of the Companies Act, 2013

The Company incurred Rs. Nil (March 31, 2020: Rs. Nil) as contribution to nation defence fund or any other Fund approved by the Central Government for the purpose of national defence.

Pursuant to The Taxation Laws (Amendment) Ordinance, 2019 ( the "Ordinance") issued on September 20, 2019, the Income tax rates have been changed with effect from April 1, 2019. The Company has elected to exercise the option permitted by the Ordinance and has accordingly recognised provision for income taxes for the year ended March 31, 2020, and remeasured the balance of net deferred tax assets, at the rates prescribed by the Ordinance; and the tax expenses include '' 84.67 lakhs of write off of MAT credit available and are net off '' 5.72 lakhs, resulting from write back of deferred tax liability pertaining to earlier years

37 Legal claims

The Company operates in a regulatory and legal environment by nature, there are various litigation, arbitration and regulatory proceedings in the ordinary course of its business. The Company has formal controls and policies for managing legal claims.

i. Matters wherein management has concluded the Company''s liability to be probable have accordingly been provided for in the books (included under Note 14).

ii. Matters wherein management has concluded the Company''s liability to be possible have accordingly been disclosed in Note 36.

iii. Matters wherein management is confident of succeeding in these litigations and have concluded the Company''s liability to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process.

38 Capital

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of the local banking supervisor, Reserve Bank of India (RBI) of India. The adequacy of the Company''s capital is monitored using, among other measures, the regulations issued by RBI.

Company has complied in full with all its externally imposed capital requirements over the reported period.

38.1 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 core investment activity and to maximize shareholder value.

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 reviewed by the Board.

39.1 Valuation principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.

39.2 Valuation governance

The Company''s fair value methodology and the governance over its models includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. The independent price verification process for financial reporting is ultimately the responsibility of the independent price verification team within Finance which reports to the Chief Financial officer.

39.4 Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only.

39.4.1Loans and advances to customers

The fair values of loans and receivables are estimated by discounted cash flow models that incorporate assumptions for credit risks, probability of default and loss given default estimates. Credit risk is derived from market observable data. Where such information is not available, the Company uses historical experience and other information used in its collective impairment models.

39.4.2Off balance sheet items

Estimated fair values of off-balance sheet positions are based on market prices for similar instruments or on discounted cash flow models, as explained above, which incorporate the credit risk element through the discount factor.

39.4.3Investment in subsidiary

The company being a core investment company has no separate business operations on a standalone basis. The equity shares of the Company are listed in stock exchanges in India and it is estimated that the value of the shares of the Company are derived from the operations in its investments in subsidiary. Accordingly, the management has considered the value of its shares in active market as the value of investment in its subsidiary having operations.

40 Risk Management Framework

The Company is a Core Investment Company (CIC) and its operations are limited to being a CIC. The risks therefore relate to investments made in its Subsidiaries and other investments. The operations of each of the subsidiaries, the risks faced by them and the risk mitigation tools followed by them to manage these risks are reviewed periodically by the Audit Committees and the Boards of the respective Subsidiaries and other investments.

The Company always regard that managing the risks that affect its business as a fundamental activity, as they influence performance, reputation and future success. Effective risk management involves taking an integrated and balanced approach to risk and reward, and assists in achieving objectives of mitigating potential loss or damage and optimizing financial growth opportunities. Risk management framework of the Company is aimed at aligning capital to investment strategy, to protect Company''s financial strength, reputation and to ensure support to various investment activities while enhancing shareholder value.

The company has a well-established risk reporting and monitoring framework. This provides the level and direction of the risks, which are arrived at based on the two level risk thresholds for the identified Key Risk Indicators and are aligned to the overall company''s risk appetite framework approved by the board. The company also developed such risk reporting and monitoring mechanism. The company identifies and monitors risks periodically. This process enables the company to reassess the top critical risks in a changing environment that need to be focused on.

are approved by the Board. These policies ensure that transactions in debt and capital markets are conducted in accordance with acceptable business practices and are as per the extant regulatory guidelines. Also refer note 42.

40.5 Credit risk and impairment assessment

Impairment risk of investment refers to the deterioration in value of investments in subsidiaries / group companies through operational and credit risks. The Company being a CIC company is exposure to credit risk and impairment risk of investments and loans to counter parties. Counter party exposures are reviewed periodically by the management for credit risk / impairment risk and are approved by the management.

As per Indian Accounting standard Ind AS 109 Nonbanking financial institutions are required to move from a standardized and regulatory approach to Expected Credit Loss model for recognizing an impairment allowance on their financials assets. The Company records allowance for expected credit losses for all loans, other debt financial assets not held at FVTPL, together with loan commitments and financial guarantee contracts. Equity instruments are not subject to impairment under Ind AS 109. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months'' expected credit loss (12mECL)). The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date. Both LTECLs and 12mECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

The Company performs an assessment, at the end of each reporting period, of whether a financial instrument''s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument.

Based on the above process, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3, as described below:

Stage 1: When loans are first recognised, the Company recognises an allowance based on 12mECLs. Stage 1 loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.

Stage 2: When a loan has shown a significant increase in credit risk since origination, the Company records an allowance for the LTECLs. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3.

Stage 3: Loans considered credit-impaired. The Company records an allowance for the LTECLs.

40.1 Risk Management Governance

Risk management is the responsibility of the Board of Directors, which approves risk policies and the delegation matrix. The Board is supported by various management committees as part of the Risk Governance framework. The Company operates within overall limits set by the Board and Committees to whom powers are delegated by the Board.

The Audit Committee of the Board assists the Board in carrying out its oversight responsibilities as they relate to the company''s financial and other reporting practices, internal control, and compliance with laws, regulations, and ethics. From risk management perspective, it review the adequacy of Company''s risk management policies, processes and report the matter to the Board of Directors.

40.2 Liquidity and Fund Management

Liquidity risk is defined as the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the company on acceptable terms. The company has developed internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and the availability of unencumbered receivables which could be used to secure funding by way of assignment if required. Refer Note 41 for the summary of maturity profile of undiscounted cashflows of the Company''s financial assets and financial liabilities as at reporting period.

40.3 Concentration of Risk/Exposure

Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such counterparties are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet contractual obligations less uniformly affected by changes in economic, political or other conditions. The Company''s investments consist of investment in equity shares of subsidiaries and the management believes that it will not be affected by changes in regulatory, economic, political or other conditions.

40.4 Market Risk Management

Market Risk may be defined as the possibility of loss to a Company caused by changes in the market variables such as interest rates, credit spreads, equity prices, etc. The market risk for the Company is governed by ''Market Risk Policy'' and ''Treasury & Investment Policy'', which

40.6 Computation of ECL

The Company calculates ECLs to measure the expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is the difference between the cash flows that are due in accordance with the contract and the cash flows that expected to be received.

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

a) Probability to Default

Probability of default (PD) is defined as the probability of whether the borrower will default on their obligations in the future. It is an unbiased estimate on the likelihood of the loan not being repaid by the borrower within a particular time. The Probability of Default is computed based on Company''s assessment of the credit history of the borrower/ investment. The accounts / investments which are more than 90 DPD or have a significant rating downgrade are considered as default.

Probability of Default (both 12m and LTECL) is computed based on rating migration and is assessed considering the Company''s past experience and also inputs / benchmarks from external credit rating agencies.

b) Exposure at Default

The Exposure at Default is an estimate of the exposure at a future default date (in case of Stage 1 and Stage 2),

taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdown on committed facilities, and accrued interest from missed payments. In case of Stage 3 loans EAD represents exposure when the default occurred.

c) Loss Given Default

The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the Exposure at Default (EAD). The Company computes Loss Given Default based on the historical recovery experience.

40.7 Forward Looking Information

I n its ECL models, the Company relies on a broad range of forward looking information as economic inputs, such as Gross Domestic Product (GDP) and Index of Industrial Production.

The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such differences are significantly material.

43 Share based payments

On December 17, 2007, the Company established an Employees Stock Option Scheme 2007 (ESOP Scheme 2007). Under the plan, the Company is authorized to issue upto 5,620,000 Equity Shares of '' 10 each to eligible employees of the Company and its Subsidiaries. Employees covered by the plan are granted an option to purchase shares of the Company subject to the requirements of vesting. A Remuneration and Nomination Committee constituted by the Board of Directors of the Company administers the plan.

During the year ended March 31, 2013, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2012 (ESOP Scheme 2012) effective from November 10, 2012. Under the plan, the Company was authorized to issue upto 1,000,000 Equity Shares of '' 10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2007 has been transferred and made available for grant under the new scheme.

During the year ended March 31, 2014, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2014 (ESOP Scheme 2014) effective from July 18, 2014. Under the plan, the Company was authorized to issue upto 10,500,000 Equity Shares of '' 10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2012 has been transferred and made available for grant under the new scheme.

During the year ended March 31, 2015, pursuant to the issue of bonus shares for the existing shareholders, the Company granted 2 additional options for every 1 option outstanding to be exercised as on the date of bonus issue. Further, the exercise price for each option was been reduced to one-third of the original exercise price determined at the grant date.

During the year ended March 31, 2016, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2015 (ESOP Scheme 2015) effective from September 7, 2015. Under the plan, the Company was authorized to issue up to 22,200,000 Equity Shares of '' 10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2014 has been transferred and made available for grant under the new scheme.

During the year the Company has not granted any stock option, during the previous year ended 31st March 2020, 4,70,060 stock options were granted to its eligible employees under Equitas Employees Stock Option Scheme, 2015 (ESOP Scheme 2015) at an exercise price of '' 115 per option. The aforesaid grant was approved by Nomination Remuneration & Governance committee at its Meeting held on August 02, 2019.

During the previous year ended March 31, 2020, 98,86,251 number of options issued under the ESOP Scheme 2015 were replaced with 3,34,87,873 options issued, under the ESFB ESOP 2019 issued by its subsidiary (Equitas Small Finance Bank Limited), to employees of Equitas Small Finance Bank and also Equitas Holdings Limited. (also refer note 16g)

44 Additional Information as required by Reserve Bank of India, Master Direction - Core Investment Companies (Reserve Bank) Directions, RBI/DNBR/2016-17/39, Master Direction DNBR. PD. 003/03.10.119/2016-17, August 25, 2016

As mentioned in the basis of preparation detailed in Note 2 to these standalone financial statements, the Company has adopted Indian Accounting Standards (''Ind AS'') notified under Section 133 of the Companies Act 2013 (''the Act'') read with Companies (Indian Accounting Standards) Rules, 2015 as amended, from April 1, 2018 and consequently these standalone financial statements for the year ended March 31, 2021 has been prepared under Ind AS.

The regulatory disclosures contained in Note 38.2 and Note 44 are required to be disclosed in the financial statements by the Company in accordance with the requirements of the Master Directions for Non-Banking Financial Company - Systemically Important Non-Deposit taking Company Directions, 2016 dated September 1, 2016 read with the applicable guidance / regulations issued by the RBI in this regard.

As at March 13, 2020, pursuant to the clarifications issued by the RBI vide Circular no: RBI/2019-20/170 DOR (NBFC). CC.PD.No.109/22.10.106/2019-20 Implementation of Indian Accounting Standards, the disclosures in note 38.2 and 44 have been prepared in accordance with Ind AS.

48 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements. The financial statements have been approved for issue on May 13, 2021 by the Board of Directors of the Company.

49 Prior period figures have been regrouped/ reclassified wherever necessary.


Mar 31, 2018

1. Corporate Information

Equitas Holdings Limited (“the Company”) was incorporated on June 22, 2007. The Company is a public limited company incorporated under the provisions of Companies Act 1956.

The Company is a non-deposit taking Systemically Important Core Investment Company (CIC-ND-SI) registered with Reserve Bank of India vide certificate no. N-07.00822. The Company is the holding company of its subsidiaries, Equitas Small Finance Bank Limited [ESFBL] and Equitas Technologies Private Limited [ETPL].

Notes:

(a) During the year, the Company allotted 2,616,230 (Previous Year 2,438,834) Equity Shares of Rs.10 each to eligible employees pursuant to exercise of options under the Employee Stock Options Scheme at applicable premiums (Refer note 4.1)

(b) During the previous year, the Company had allotted 65,454,545 Equity Shares of Rs.10 each issued through IPO at a premium of Rs.100 per share. Accordingly, an amount of Rs.65,454.55 lakh was credited to Securities Premium Account.

2.1 Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash

During the year ended March 31, 2015, the Company had issued 14,74,63,018 bonus equity shares of Rs.10 each to all the then existing shareholders in the ratio of two equity shares for every one share held. Pursuant to such bonus issue of equity shares, the Company had utilised the amount from the reserves.

2.2 Disclosure of rights

“The Company has only one class of equity shares having a par value of Rs.10. Each holder is entitled to one vote per equity share. Dividends are paid in Indian Rupees. Dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend. Repayment of capital will be in proportion to the number of equity shares held.

2.3 Shares reserved for issuance

Refer note 25 with respect to Employee Stock Option Scheme.

4 Share application money pending allotment

The Company has received Rs.66.67 lakh as at March 31, 2018 (As at March 31, 2017: Rs.26.90 lakh) from employees towards exercise of options under the employees stock option scheme. Pending allotment of shares, the amount received has been shown as “Share application money pending allotment”.

Based on the information available with the company, there are no amounts payable to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 as at the Balance Sheet date. This has been determined to the extent such parties have been identified on the basis of information collected by the Management.

5.1 Capital work in progress

The Capital Work in Progress as at March 31, 2018 amounting to Rs.106.77 lakh (As at March 31, 2017: Rs.10.05 lakh) represents the cost of construction of additional floors at the existing school buildings and new building works, which are in progress as at March 31, 2018.

5.2 Buildings given on operating lease

The Company has constructed buildings in Kumbakonam, Trichy, Dindigul, Salem, Coimbatore, Karur and Cuddalore in Tamil Nadu. These have been leased out for a period of 30 years’ to Equitas Development Initiatives Trust (EDIT) for running schools at the places mentioned above.

6.1 Investment in Equitas Technologies Private Limited

Equitas Technologies Private Limited, subsidiary of the Company, is in the business of providing a common market place for facilitating goods transportation. Due to accumulated losses of Rs.1,580.65 lakh as at March 31, 2018, ETPL’s net worth is eroded by 78.65% (Previous year - 63.68%). Considering the long term strategic nature of these investments, the Board of Directors of the Company considers this diminution as temporary and accordingly, no provision is considered necessary as at March 31, 2018.

7 Deferred tax assets

The Deferred tax asset of Rs.26.83 lakh as at March 31, 2018 has arisen on account of the following:

8 Employee benefits

8.1 Defined contribution plan

The Company makes Provident Fund contributions to State administered fund for qualifying employees. The Company is required to contribute a specified percentage of the payroll costs to the Fund. The Company recognised Rs.6.01 lakh (for the year ended March 31, 2017: Rs.6.33 lakh) towards Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to the fund by the Company is at rates specified in the rules of the scheme.

9.1 Defined benefit plans

Gratuity provision has been made based on the actuarial valuation done as at the year end. The details of actuarial valuation as provided by the Independent Actuary is as follows:

Notes:

a) Discount rate is based on the prevailing market yields of Indian Government Bonds as at the balance sheet date for the estimated term of the obligation.

b) The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors. Further, the Management revisits the assumptions such as attrition rate, salary escalation etc., taking into account, the business conditions, various external/internal factors affecting the Company.

c) Experience Adjustments:

9.2 Compensated Absences

The key assumptions used in the computation of provision for compensated absences as per the Actuarial Valuation done by an Independent Actuary are as given below:

10 Employee Stock Option Scheme

On December 17, 2007, the Company established an Employees Stock Option Scheme 2007 (ESOP Scheme 2007). Under the plan, the Company is authorized to issue upto 5,620,000 Equity Shares of Rs.10 each to eligible employees of the Company and its Subsidiaries. Employees covered by the plan are granted an option to purchase shares of the Company subject to the requirements of vesting. A Nomination, Remuneration & Governance Committee constituted by the Board of Directors of the Company administers the plan.

During the year ended March 31, 2013, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2012 (ESOP Scheme 2012) effective from November 10, 2012. Under the plan, the Company was authorized to issue upto 1,000,000 Equity Shares of Rs.10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2007 has been transferred and made available for grant under the new scheme.

During the year ended March 31, 2014, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2014 (ESOP Scheme 2014) effective from July 18, 2014. Under the plan, the Company was authorized to issue upto 10,500,000 Equity Shares of Rs.10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2012 has been transferred and made available for grant under the new scheme.

During the year ended March 31, 2015, pursuant to the issue of bonus shares for the existing shareholders, the Company granted 2 additional options for every 1 option outstanding to be exercised as on the date of bonus issue. Further, the exercise price for each option was been reduced to one-third of the original exercise price determined at the grant date.

During the year ended March 31, 2016, the Company established a new employee stock option scheme titled Equitas Employees Stock Option Scheme, 2015 (ESOP Scheme 2015) effective from September 7, 2015. Under the plan, the Company was authorized to issue upto 22,200,000 Equity Shares of Rs.10 each to eligible employees of the Company and its Subsidiaries. Further, the outstanding options under the ESOP Scheme 2014 has been transferred and made available for grant under the new scheme.

11 Segment information

The Company is primarily engaged in the business of Core Investment Operations only in India. Accordingly there are no separate reportable segments as per AS-17 “Segment Reporting”.

12 Statutory Reserve

As per Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at the rate of 20% of the Profit after Tax. Accordingly, the Company has transferred to Statutory Reserve an amount of Rs.108.70 lakh (Previous Year: Rs.93.70 lakh), out of the Profit after tax for the Year ended March 31, 2018.

12.1 Additional Information as required by Reserve Bank of India, Master Direction - Core Investment Companies (Reserve Bank) Directions, RBI/DNBR/2016-17/39, Master Direction DNBR. PD. 003/03.10.119/2016-17, August 25, 2016

The Company in accordance with its CSR Policy has implemented CSR activities, through the Equitas Development Initiatives Trust, a public charitable trust established by the Company.

The Board of Directors have approved a donation of Rs.20.00 lakh (Previous Year Rs.17.95 lakh) to Equitas Development Initiatives Trust for the year ended March 31, 2018 (Refer notes 22 & 24.2).

13 The Board of Directors have reviewed the realisable value of all the assets of the Company (other than Fixed Assets and NonCurrent Investments) and have confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements.

14 Previous Year

The figures of the previous year have been audited by a firm of chartered accountants other than S.R.Batliboi & Associates LLP. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year grouping / classification.


Mar 31, 2017

1. statutory Reserve

As per Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at the rate of 20% of the Profit after Tax. Accordingly, the Company has transferred an amount of Rs, 93.70 Lakh (Previous Year: Rs, 42.40 Lakh), out of the Profit after tax for the Year ended 31 March 2017 to Statutory Reserve.

2. csR Activities

The Company in accordance with its CSR Policy has implemented CSR activities, through the Equitas Development Initiatives Trust, a public charitable trust established by the Company

The Board of Directors have approved a donation of Rs, 17.95 Lakh (Previous Year Rs, 7.00 Lakh) to Equitas Development Initiatives Trust for the Year Ended 31 March 2017 (Refer Note 20 & 23.2).

3. The Board of Directors have reviewed the realizable value of all the assets of the Group (other than Fixed

Assets and Non-Current Investments) and have confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognized in the financial statements.

4. initial Public Offering

The Initial Public Offering (IPO) of the Company opened for subscription from 5 April 2016 to 7 April 2016. The IPO of 197,880,429 equity shares of the Company at the issue price of Rs, 110/- per share (consisting of 65,454,545 fresh issue of equity shares and 132,425,884 equity shares under offer for sale) was fully subscribed by the Public. Consequently, the paid up share capital of the Company stands increased to 335,374,912 equity shares of Rs, 10/each. The equity shares were listed in National Stock Exchange of India Limited and BSE Limited on 21 April 2016.

As per clause 32 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), 2015, the details of the proceeds from the Initial Public Offer is given below:

*The issue expenses have been adjusted against the Securities Premium as provided under Section 52 of the Companies Act, 2013.

The above Net Proceeds of the Issue has been deployed as per the Objects of the Issue. The monitoring agent of the IPO, Axis Bank Limited has provided their Monitoring Report dated 17 October 2016 confirming the utilization of the aforesaid Net Proceeds.

** Erstwhile Subsidiaries of EHL, which were merged into EFL to form the SFB.

5. Previous Year

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year classification / presentation.

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