Can Fin Homes Ltd

Annual Report 2018-19

Capitalising on Opportunities.
Sustaining Growth.
Contents

01
Page
Strategic Overview
02 Corporate Information
Traversing on the
path of success
02
04 Can Fin Homes at a Glance
06 Sustained Momentum
08 Message from the Managing Director requires persistence
10 From strength to strength – A peek
into our dynamics and perseverance.
12 Spanning across India
14 Can Fin Cares The recent period has
16 Expanding Footprint
17 Awards and Accolades been a testing time
for HFCs and financial
18 Operational and Financial Highlights
22 20 Profile of Board of Directors

institutions. However,
02
Page
Statutory Reports
23 Management Discussion and
we at Can Fin remained
23

35
Analysis
Report of Directors
steadfast in our
99 Report of Directors on
Corporate Governance outlook and continued
129 123 General information to Shareholders
to explore new
vistas, opportunities
03 Financial Statements
Page
130 131 Independent Auditor’s Report endeavouring to
140 Balance Sheet
141 Statement of Profit & Loss sustain the momentum.
142 Cash Flow Statement
144 Statement of Changes in Equity
145 Notes forming part of
Financial Statements
217 208 List of Branches, AHLCs & SOs
Can Fin has always been committed
to its cause of increasing home
ownership across the country. From
our modest beginning to earning a
credible name that Can Fin is today,
the journey has been a long and
arduous but rewarding one. The
motto of friendship finance pursued
by the company helps forge bonds
with our esteemed patrons. The
Company believes in connecting
the people of India to their dreams
of building an intimate space.
Powered by a pan India presence and blessed by a diverse,
skilled and zealous workforce, Can Fin has proven its calibre
time and again. With strong financial performances to its
credit, Can Fin’s existence for over three decades has been
worthwhile. While we continue to progress forward in this
journey of providing homes to people, we look forward to
enhancing the smiles of our beneficiaries and increasing their
sense of well-being and security. After all, the very essence of
a business is to capitalize on every opportunity that comes its
way in order to carry forward a legacy of sustained growth.

To know more about us

in digital mode,
scan this QR code in your
QR mobile application.
Can Fin Homes Ltd

Corporate Information
Can Fin Homes Limited Senior Management Personnel*
Registered Office At Registered Office

#29/1, 1st Floor, Sir M N Krishna Rao Road Smt Shamila M, GM (KMP)
Near Lalbagh West Gate, Basavanagudi, Bengaluru 560004 Shri Atanu Bagchi, DGM & CFO (KMP)
Shri B M Sudhakar, DGM
Tel : 080-26564259; Fax : 080-26565746
Smt Veena G Kamath, AGM & CS (KMP)
Email : investor.relationship@canfinhomes.com
Shri Sikhin Tanu Shaw, AGM
Web: www.canfinhomes.com Shri Prashanth Joishy, AGM
Statutory Auditors Shri S Mohana Krishnan, CM
In Operations
M/s Varma & Varma
# 424, 4th C Main Shri Ajay Kumar G Shettar, DGM, BLR–CPC & Cluster head
6th Cross, OMBR Layout Banaswadi, Bangalore 560043 Shri N Babu, DGM, HYD–CPC & Cluster head
Shri Prashanth Shenoy, DGM, NCR-New Delhi & Cluster head
Secretarial Auditors Shri R Murugan, DGM, CHN–Annasalai & Cluster head
Shri Prakash Shanbogue B, DGM, MUM-Borivili & Cluster head
M/s. S Kedarnath & Associates
Shri M Sundar Raman, AGM, BLR-Koramangala
004 Ojus Apartments, 4th Main Road Malleshwaram, Shri Jagadeesha Acharya, AGM, HYD-Taranaka
Bangalore 560003 Shri Sanjay Kumar J, AGM, NCR-Faridabad
Shri Srinivas Malladi, AGM, HYD-Kukatpally
Principal Banker Shri P S Mallya, AGM, BLR-Sarjapur Road
Canara Bank, Prime Corp. Branch, MG Road, Bengaluru Shri A Uthaya Kumar, AGM, CBE, Gandhipuram
Shri K Srinivas, AGM, Vijayawada
Other Bankers Shri Arun Kumar V, AGM, MUM-Panvel
Shri H R Narendra, AGM, BLR-Hesarghatta Road
State Bank of India HDFC Bank Ltd. Federal Bank Lakshmi
Shri D R Prabhu, AGM, Indore
Vilas Bank Corporation Bank Shri Vinayaka Rao M, AGM, BLR-Cunningham Road
Registrar & Transfer Agent Shri R Hariharasubramanian, AGM, NCR-Noida
Shri Santosh Prakash Srivastav, AGM, NCR-Gurgaon
Canbank Computer Services Limited Shri R Madhu Kumar, Chief Manager, Trivandrum
Shri Jayakumar N, Chief Manager, CHN-Ambattur
Unit: Can Fin Homes Ltd., Shri S N Venkatesh, Chief Manager, Hubli
R&T Center, #218, JP ROYALE, 1st Floor, Sampige Road, Shri P Badri Srinivas, Chief Manager, Bhopal
2nd Main, Near 14th Cross, Malleshwaram, Smt Chitra Srinath, Chief Manager, BLR-Bidadi
Bengaluru - 560003 Shri N Sivasankaran, Chief Manager, Salem
Tel : 080-23469661, Email : canbankrta@ccsl.co.in Shri T T Achuthanand, Chief Manager, HYD - Kompally
Website: www.ccsl.co.in Shri M Naveen Prabhu, Chief Manager, Visakhapatnam
CIN : U85110KA1994PLC016174 Smt Mallika K Shetty, Chief Manager, BLR-Uttarahalli
Shri J Meenakshi, Chief Manager, BLR-Kengeri
Debenture Trustee Shri K S Kamath, Chief Manager, Mangalore
Shri G Pramodachandra, Chief Manager, BLR-Sahakarnagar
SBICAP Trustee Company Limited Shri Arunkumar Shastri, Chief Manager, Ahmedabad
Smt Rashmi Kanta Satapathy, Chief Manager, HYD - L B Nagar
6th Floor, Apeejay House, 3, Dinshaw Wachha Road,
Shri R Jabak Kumar, Chief Manager, CHN-OMR Perungudi
Churchgate, Mumbai 400020
Shri M Jagannathan, Chief Manager, Madurai
Tel : 022-43025555, Fax : 022-43025500 Smt Madhu Shetty, Chief Manager, BLR-Electronic City
Email : corporate@sbicaptrustee.com Smt Ravika Datt, Chief Manager, Hosur
Website : www.sbicaptrustee.com Smt Ambika Pai, Chief Manager, HYD-Gachibowli
CIN: U65991MH2005PLC158386 Shri Ratheesh Kumar, Chief Manager, NCR - Greater Noida
Shri Pankaj Kumar, Chief Manager, Karimnagar
Corporate Identity Number Shri P V Mohan Krishna, Chief Manager, HYD- Ramachandrapuram
L85110KA1987PLC008699 Shri B H Umesh Pai, Chief Manager, Pune
Shri V Sarathchandran, Chief Manager, BLR-K R Puram
Legal Entity Identifier(LEI) Number Shri Sudipta Datta, Chief Manager, Bhubaneswar
Shri Dileep Kumar Prabhu V, Chief Manager, CHN-Tambaram
335800EJ9Y3XDP5ZDH81 Shri H N Vasanth Kumar, Chief Manager, BLR-Marathahalli
Shri Manoj Kumar Badal, Chief Manager, Jaipur

* As on April 30, 2019

02
 Strategic Overview | Annual Report 2018-19

Board of Directors Board Committees

Smt. Bharati Rao Audit Committee
(DIN: 01892516)
Shri G Naganathan - Chairperson
Chairperson (Independent Non-Executive)
Smt Bharati Rao – Member
Shri Sarada Kumar Hota
(DIN: 07491088) Dr. Yeluri Vijayanand- Member
Managing Director Shri S Subramanian- Member
Shri Debashish Mukherjee
Stakeholders Relationship Committee
(DIN: 08193978)
Dr. Yeluri Vijayanand - Chairperson
Additional Director (Promoter Non-Executive)
Shri Sarada Kumar Hota - Member
Shri G Naganathan
(DIN: 00423686) Shri G Naganathan – Member
Director (Independent Non-Executive) Smt Bharati Rao- Member
Shri Shreekant M Bhandiwad
Corporate Social Responsibility Committee
(DIN: 08120906)
Dy. Managing Director (Whole-time Director) Smt Bharati Rao - Chairperson

Dr. Yeluri Vijayanand Shri Sarada Kumar Hota - Member

(DIN: 00594503) Shri G Naganathan – Member
Additional Director (Independent Non-Executive) Shri Shreekant M Bhandiwad- Member
Shri S Subramanian
(DIN: 07901414) Nomination Remuneration & HR Committee
Additional Director (Promoter Non-Executive) Dr. Yeluri Vijayanand - Chairperson
Smt Bharati Rao- Member
Listing of Equity Shares
Shri G Naganathan – Member
National Stock Exchange of India Ltd. Shri Debashish Mukherjee- Member
(NSE Symbol: CANFINHOME)
Exchange Plaza, Plot No. C/1, G-Block, Risk Management Committee
Bandra Kurla Complex, Bandra (East), Mumbai 400051 Shri Debashish Mukherjee- Chairperson
Smt Bharati Rao - Member
BSE Limited
(BSE Scrip Code: 511196) Shri Shreekant M Bhandiwad- Member
Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Smt Shamila M (General Manager) – Member
Mumbai 400001
Management Committee
Depository for equity shares
Shri Sarada Kumar Hota - Chairperson
National Securities Depository Limited Smt Bharati Rao - Member
Trade World, ‘A’ Wing, 4th Floor Shri S Subramanian- Member
Kamala Mills Compound Senapati Bapat Marg, Lower Parel, Shri Shreekant M Bhandiwad- Member
Mumbai 400 013
Tel : 91 22 2499 4200 Fax : 91 22 2497 6351 IT Strategy Committee
Central Depository Services (India) Limited Shri G Naganathan - Chairperson
Marathon Futurex , A WIng, 25th floor, N M Joshi Marg Shri Shreekant M Bhandiwad- Member
Lower Parel (East), Mumbai 400013 Smt Shamila M (General Manager) – Member
Tel : 91 22 2302 3333 Fax : 91 22 2300 2335 Shri Sikhin Tanu Shaw (AGM- IT)- Member

32nd Annual General Meeting

Wednesday, July 17, 2019 at 11:00 AM
At ‘NIMHANS’ Convention Centre’ Hosur Road,
Lakkasandra, Bengaluru, Karnataka 560029.

03
Can Fin Homes Ltd

Can Fin Homes at a Glance

Established in the year 1987, Can Fin
Homes Limited, is one of the reputed
housing finance companies in India.
With our presence spread across the
country, we strive to provide housing
finance to customers and build a long-
term sustainable business.

Key differentiators

Risk management Collection Lending rates

Introduced Centralised Introduced Centralised Introduced Annual Resetting
Processing Centres (CPC) Collection Centres (CCC) of Rate of Interest, a
to improve risk management to improvise control over customer centric initiative
for big ticket loans collection

Insurance Branch Expansion Loan book

Gaining steady pace after Network increased in Tier II and Increased to H 18381 Crore
foraying into insurance III cities by (+21 branches) (+17%) as on March 31, 2019
business

04
 Strategic Overview | Annual Report 2018-19

3,70,000
Families assisted by
Can Fin since inception

189
Branches/Satellite office
for customer service

100%
Increase in customer base
over the past 5 years

make CanFin a
customer-centric
organisation

792 Employees 26%

Employee strength as who are leading to Loan Book growth*
on March 31, 2019 highly growth in
skilled, 1 3 profitability 32%
25 years motivated and NII Growth*
Average experience and sustainability
of top management committed 31%
PAT Growth*
24%
Women Employees 4 J 530.45 Crore
Net Interest Income
and contribute
towards well-being
and development
of society

J 6.06 Crore
CSR spent

68
No. of schools benefitted

8
Hospitals

75000
Number of lives benefitted

* 5-Year CAGR

05
Can Fin Homes Ltd

Sustained Momentum
Financial Performance

Loan outstanding Net Interest Income (NII)

(H in Crore) (H in Crore)
FY 2017 13313 FY 2017 422
FY 2018 15743 FY 2018 510
FY 2019 18381 FY 2019 530

Net Profit EPS

(H in Crore) (H)
FY 2017 235.26 FY 2017 17.68
FY 2018 286.62 FY 2018 21.49
FY 2019 296.76 FY 2019 22.29

GNPA Net Interest Margin

(%) (%)
FY 2017 0.21 FY 2017 3.54
FY 2018 0.43 FY 2018 3.53
FY 2019 0.62 FY 2019 3.14

Cost to income ratio Average business per branch

(%) (H in Crore)
FY 2017 17.02 FY 2017 97.88
FY 2018 16.23 FY 2018 106.58
FY 2019 16.30 FY 2019 111.86

06
 Strategic Overview | Annual Report 2018-19

Book value per share Return on Average Equity

(H) (%)
FY 2017 80.86 FY 2017 24.08
FY 2018 111.72 FY 2018 21.30
FY 2019 133.90 FY 2019 18.16

ROA Gearing Ratio

(%)
FY 2017 1.97 FY 2017 11.03
FY 2018 1.98 FY 2018 9.36
FY 2019 1.76 FY 2019 9.37

* FY 18-19 Figures under IND AS (Returns impacted by amortisation of Processing Fee over loan life).

Non-Financial Performance

Branches / Satellite offices CSR Spend

(H in Crore)
FY 2017 170 FY 2017 4.36
FY 2018 173 FY 2018 3.38
FY 2019 189 FY 2019 6.06

Market presence Loan book profile Loan book portfolio

(%) (%) (%)
10
10.5

29 71 89.5

27
63

North South West Salaried and Others Housing Non-Housing

professional finance finance

07
Can Fin Homes Ltd

Message from the Managing Director

India continues in its growth story as one of the fastest growing

major economies of the world. With a sustained growth rate
of ~7% and backed by robust growth in the manufacturing,
infrastructure and consumer goods, the country is headed
for a stronger and sustainable growth rate in the coming
fiscal. However, the financial sector is going through the most
challenging times of recent years. An increasing number of
players in NBFC /HFC market are facing the challenges of
business sustainability.

The thought of India as a country where every citizen has a roof

over their head, till recently, appeared to be a distant dream.
However, the Government of India (GoI) has indomitably been
pushing affordable housing under its flagship initiative ‘Housing
for All by 2022’ and trying to turn this dream into a reality. Since
the announcement of the initiative in 2015, approx. 1.53 Crore
houses have been built in rural as well as urban areas under the
Pradhan Mantri Awas Yojana (PMAY). Through the smart city
mission under the Ministry of Housing and Urban Affairs, the GoI
aims to drive economic growth and improve the quality of life of
people by developing 100 cities across the country making them
citizen friendly and sustainable.

Our focus so far has mainly As developers accepted the new market realities of GST and Real
Estate (Regulation & Development) Act, 2016, the residential
been on Housing Loans to sector regained visibility, transparency and trust. Low and
Mid-income housing clearly became the front-runner of driving

individuals with 90% of the the housing sector growth at the backdrop of government’s
reformatory push, as more private players entered the space.

loan book comprising retail A reduction in GST rates for under-construction properties and
several new project launches have brought correction in real

home loans and over 71%

estate prices, which is advantageous for the home-buyers.
Armed with the Insolvency & Bankruptcy Code, homebuyers now
get the same treatment as financial institutions when it comes to
lending in salaried space. recovering dues from real estate firms that go bankrupt.

Can Fin Homes is the first housing finance company to have

introduced Affordable Housing Loan Centres (AHLCs) to lend
exclusively in the peripheral areas of the Tier 1, Tier 2 and Tier 3
Dear Shareholders, cities. Currently, we have 21 AHLCs. Since the land and building
value are more affordable in these areas, lending under the
The objective of Can Fin Homes, when it was instituted 31 years Affordable Housing Loan Scheme (Urban & Rural) and the Credit
ago, was to promote home ownership and increase housing Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas
stock in the country. We continued to work towards our objective Yojana (PMAY) is feasible.
of ensuring a roof over every Indian’s head, reaching out to as
many people as possible, and the noble cause continues. Our Our focus so far has mainly been on Housing Loans to individuals
performance during the recent years is a validation of how with 90% of the loan book comprising of retail home loans and
we capitalized on business opportunities and expanded our over 71% lending in salaried space. Most of our borrowers are
foothold in the domestic market despite various challenges first time home buyers as evidenced by the average age of our
faced by the sector. incremental borrowers at around 40 years. We will continue to

08
 Strategic Overview | Annual Report 2018-19

abide by our dictum to have a judicious lending mix with very management (AUM) improving at a CAGR of 26% over the last
gradual and calibrated foray into non-housing and non-salaried five years.
category while, our core business principle of staying a purely
retail and affordable home lender for lower income group of In our endeavour to widen our service portfolio and revenue
customers would continue to be sacrosanct for us. streams, CFHL has entered into distribution of general insurance
products of three companies in addition to life, through corporate
With new loan approvals of H5952 Crore and disbursements agency.
of H5479 Crore during the year, our loan book grew by 17% to
H18381 Crore with a clientele base of 1.46 lakh as on 31st March As our country marches ahead on a solid growth trajectory
2019. Notwithstanding the macro-economic challenges and the to complete 75 glorious years of independence, we at CFHL,
liquidity issues surrounding the NBFC/HFC space, CFHL was remain committed to building a better India by reaching out to
consistent in its growth momentum quarter on quarter, the best more home aspirants. We expect 2019-20 to be a year when
quarterly growth of recent times coming in Q4FY19. many more individuals can now hope to own a home rather than
living in rented accommodation.
Presently, our lending norms are stringent in terms of the loan to
value ratio in tune with the regulatory guidelines. Safe margins As a strategic shift in our expansion plan, we have opened
of mandatory investment by the borrowers are insisted upon more branches in Tier-II and Tier-III cities, beyond our home
as a part of our prudent underwriting policy to mitigate the risk turf of Southern India to provide them best-in-class financial
of default. We have always been consciously conservative in assistance. From 110 branches as at March 2016, our network
our lending approach to ensure good asset quality, which is our has grown to 189 branches now, spread across 21 states/UTs;
USP. Despite an industry-wide rise in delinquency rates, CFHL and 53 out of the 65 new branches added during last 3 years
could successfully hold its gross and net NPA levels at 0.62% are in non-metro growth centres. We have plans to add 20 more
and 0.43% respectively. branches in potential Tier II/III cities in the fiscal 2020 as a step
further in this direction.
While CFHL follows a cost conscious approach to borrowing,
any increase in the cost of the funds, as dictated by market Focus of your Company will continue to be on Affordable Housing
conditions, will have to be leveraged by passing on the same to segment while quality of assets will continue to prevail over
customers. This is the practice generally followed by all banks growth. The Nation is on a mission mode to achieve Housing
and peer institutions. Moreover, with the introduction of the for All by 2022. Positive reflections of reforms like RERA and
annual reset clause effective from April 2017, the rate of interest GST on the sector and the Pradhan Mantri Awas Yojna (PMAY)
is automatically reset on an anniversary basis, protecting both the will be the key drivers of growth in affordable housing and as a
customer as well as CFHL. Your Company is the only HFC to have key player in the segment, we have huge opportunities ahead
introduced such a fair and transparent interest rate mechanism. of us. Finding the way forward is always challenging, but I am
confident that, at CFHL, we have the vision, competency and
CFHL successfully migrated to Ind-AS and for FY19, it was financial strength to turn today’s opportunities into tomorrow’s
the first audited full year accounts published under the new success.
Accounting Standard. Accordingly, the annual as well as
quarterly financials for the previous year were also realigned / Our journey has been enriched by the unstinting support and
restated as per Ind-AS. Major impact on P&L was on account guidance of our regulator, National Housing Bank, our parent
of amortization of entire Processing Fee over the loan life. This Institution Canara Bank, our Board of Directors, customers,
apart, current year P&L has the impact of a higher CSR spend of stakeholders, lenders, Advocates, Valuers, Direct selling Agents,
Rs.2.68 Crore compared to previous year and a one-time hit of Auditors and rating Agencies. Also, I would like to sincerely
Rs.8.76 Crore pertaining to previous period tax expenses. appreciate all the employees for their hard and excellent work in
the current fiscal and look forward to another exciting year ahead!
Notwithstanding the above, our PAT improved to H296.76 Crore
in 2018-19 from H286.62 Crore in 2017-18. While Net Interest Regards
Income improved to H530.45 cr in the year under review, Net
interest margin stood at 3.14%. The cost to income ratio was
contained at 16.30%. We were able to maintain a healthy ROE S K Hota
and ROA of 18.16% and 1.76% respectively with asset under Managing Director

09
Can Fin Homes Ltd

From strength to strength – A peek into

our dynamics.

Our Focus Area Leveraging our Strengths

• Promote home ownership across India, with

focus on affordable housing • Potential to grow organically

• Housing loans to Individuals • Strong presence with 154 branches, 21

Affordable Housing Loan Centers & 14
• Strong fundamentals with ethical & Satellite Offices spread across 21 States /
transparent practices and prudent Union Territories
underwriting
• Customer friendly/ Tailor made Housing and
non-housing schemes to serve a diverse
customer profile. As on March 31, 2019
we offer 24 different types of loans to our
customers

Vision 2022 • Over three decades of industry knowledge

and experience
Record a loan book size of H40,000 Crore by
March 2022 (CAGR of 26%) with high asset • We have maintained good asset quality
quality, transparent & best ethical practices and which has a reflection in our superior
prudent risk management practices. profitability ratios

10
 Strategic Overview | Annual Report 2018-19

Capitalising on opportunities Sustaining long-term growth

• 3.95 Crore New houses to be developed • Focus on sustaining our revenues along with
under the scheme of Housing for All by 2022 operational excellence

• Rising per capita income • H 18 lakhs - Average home loan ticket size

• Increasing young working population • 16.30% - Cost to Income ratio in FY 2019

• PMAY - CLSS benefit of subsidy to our target • 71% of loan book from salaried and
segment professional segment

• Tax sops to developers for affordable housing • 7.90% - Average Cost of borrowing

• Exemption of tax on notional rent in respect • Increased penetration in Tier II and III cities
of second house

11
Can Fin Homes Ltd

Spanning across India

Our branch network has steadily extended across India’s largest and fastest-growing
economic growth zones, thereby augmenting the prospects of our growth in the coming
years. Following is the list of branches, AHLCs and satellite offices as on May 31, 2019.

20
3 8
15
1

11

17
2

21
10
7

4
5
14

13

18
6 19

12 16

12
 Strategic Overview | Annual Report 2018-19

1 2 3 4
Delhi Bihar Chandigarh Chhattisgarh
• Nehru Place • Pitampura • Patna • Raipur • Bilaspur • Bhilai
• Durg(SO)

5 6 7 8
Odisha Goa Gujarat Uttarakhand
• Bhubaneswar • Goa • Ahmedabad • Vadodara • Dehradun
• Behrampur • Patia (SO) • Surat

9 10 11 12
Pondicherry Madhya Pradesh Rajasthan Kerala
• Pondicherry • Bhopal • Gwalior • Jaipur • Kota • Udaipur • Calicut • Kochi • Thrissur
• Indore • Mandideep • Ajmer • Jodhpur • Thiruvananthapuram
• Jabalpur • Mansarovar • Jhotwara • Shoranur • Aluva(SO)
• Kazhakuttom(SO)
• Neyyatinkara(SO)

13 14 15 16
Telangana Maharashtra Haryana Tamil Nadu
• Hyderabad (9 branches) • Navi Mumbai • Mumbai • Gurgaon • Sonepat • Hosur
• Warangal • Karimnagar • Nagpur • Panvel • Pune • Faridabad • Dharuhera • Chennai (9 branches) Madurai
• Khammam • A S Rao Nagar • Nashik • Kalyan • Boisar • Rohtak • Karnal • Rewari • Namakkal • Trichy
• Ghatkesar • Sangareddy • Ambala • Manesar • Coimbatore • Salem • Erode
• Vellore • Thiruchengode
• Dindigul • Karur
• Virudhunagar • Tirunelveli
• CBE- P N Palyam • Tirupur
17 18 19 • Kumbakonam • Thoothukudi
Uttar Pradesh Karnataka Andhra Pradesh • Gobichettipalayam
• Lucknow • Meerut • Bengaluru (25 branches, 5 SO) • Nellore • Ongole • Tirupathi • Batlagundu • Cuddalore(SO)
• Noida • Greater Noida • Davanagere • Hubli • Mysore • Guntur • Kakinada • Vizag • Thirumangalam
• Agra • Varanasi • Mangalore • Mandya • Vizag Steel Plant • Kurnool • Kangeyam(SO)
• Allahabad • Kanpur • Belgaum • Shimoga • Tumkur • Vijayawada • Rajahmundry • Oddanchatram(SO)
• Ghaziabad • Udupi • Hassan • Dharwad • Vizianagram • Tenali • Eluru • Peelameedu(SO)
• Mys-Vijaynagar(SO) • Gollapudi • Mangalagiri • Thiruverumbur(SO) • Velur(SO)

20 21
Punjab West Bengal
• Jalandhar • Durgapur

13
Can Fin Homes Ltd

Can Fin Cares

At CanFin, we believe that we are in a business which empowers people to own homes and
live in prosperity. We also contribute towards bringing positive changes in society around us.

During the year, we undertook several CSR measures, which

further strengthened our presence within the communities
we operate. We made several contributions towards the
improvement of society, in various fields of education, health,
nutrition, empowerment of women and the downtrodden,
eradication of hunger and environmental conservation among
others.

EDUCATION HEALTH

At CanFin, we primarily focus on empowering children with

education. We worked towards this noble cause in FY19 by
ENVIRONMENTAL
CONSERVATION NUTRITION awarding scholarships to meritorious, poor students, supply
of books, desks, boards, almirahs, fans, lights, water purifiers
and other necessary materials in about 68 schools across
the country. In addition to this, we also carried out repair
and renovation of various schools.
ERADICATION EMPOWERMENT
OF HUNGER OF WOMEN
Our CSR activities also aim at promoting healthcare. We
have funded a life-saving medical equipment and undertaken
renovation work in about 8 hospitals.

68 90 • As a part of our healthcare initiative, the Company’s

Managing Director, Sri S K Hota handed over a cheque of
Government schools across the CSR projects funded H9,78,500/- to Dr. Rajeshwari Devi H R, District Surgeon
country covered under our CSR and Medical Superintendent, Wenlock Hospital, Mangalore
initiative for providing education on May 08, 2019 in the presence of the other doctors of
the hospital for a laproscopy equipment to be utilized in
performing key hole surgeries

J6.06 Crore
Spent towards CSR initiatives during FY18-19

Through our CSR activities (90

projects), we have made a holistic
difference to the lives of the citizens MD, GM handing over the cheque of H9.78 lakh to Wenlock Hospital,
of our country. Mangalore for a laproscopy machine

14
 Strategic Overview | Annual Report 2018-19

• An amount of H78.22 lakh was given to Jayadeva Institute of

Cardiovascular Vascular Sciences, Bangalore for purchase
of a Heart Lung Machine.

Karnataka Cancer Therapy & Research Institute, Hubli - H30.58 lakh

for medical equipment

Further, as a part of our initiatives to build a greener and cleaner

environment, we provided saplings to our customers across
the country. Additionally, in order to reduce the use of plastics,
Jayadeva Institute of Cardiovascular Vascular Sciences for purchase and promote green environment we procured cotton bags for
of heart lung machine distributing to our borrowers and general public at large.

Our CSR funds have also been utilised for enhancing the quality Moreover, for the 4th year in a row, we sponsored the Eureka
of living in old age homes and rehabilitation centres for the Run for Children at Elliot’s beach, Chennai, in order to support
physically and intellectually challenged. Further, we have also our mission of providing quality education for rural children
contributed to the Akshay Patra Foundation for the purpose of along with AID India, a non-profit organization. AID India has
providing mid-day meal to 6150 children in Mangalagiri for 6 been supporting the education of a good number of children in
months. several villages and schools, especially in Tamil Nadu for the
past 22 years.

CSR contribution to Akshay Patra Foundation, Bengaluru towards

Mid day meal scheme CHFL Eureka Run

H24.81 lakh cheque handed over

to Ramakrishna Math Charitable
Dispensary & Diagnostic Centre,
Mylapore, Chennai by Director,
Sri G Naganathan, for procuring
medical equipment

15
Can Fin Homes Ltd

Expanding Footprint
We believe optimizing our branch network is important for us to propel our growth and
sustainability. Our new branches are strategically located to cover a widening customer
base at emerging growth centres.

August 09, 2018 December 12, 2018 November 15, 2018

Inauguration of Bannerghatta Branch by Inauguration of Whitefield Branch by Inauguration of Jagatpura, Jaipur Branch
Director, CanFin Homes, Smt P V Bharati Director, CanFin Homes, Shri Debashish by MD, Shri S K Hota
(ED, Canara Bank) Mukherjee (ED, Canara Bank)

November 24, 2018 September 20, 2018

Inauguration of Jharsuguda Branch by MD, Shri S K Hota Inauguration of Hinjewadi Branch. DMD
Shri Shreekant M Bhandiwad addressing the gathering

July 20, 2019 April 22, 2019

Inauguration of Alwar Branch in the presence of MD, Inauguration of new premises of Baroda Branch by MD,
Shri S K Hota Shri S K Hota

16
 Strategic Overview | Annual Report 2018-19

Awards and Accolades

The year proved to be a milestone year in terms of recognition. In an industry space that
is increasingly competitive with aspirational customers, at Can Fin our operations and
processes have enabled us to stand out and be recognized as among the best.

FE INDIA’S BEST BANK AWARDS FOR FY17 - Winners in one frame

FE INDIA’S BEST BANKS AWARD IN NBFC CATEGORY FY17 - FE INDIA’S BEST BANKS AWARDS - Moment to Cherish - Sri S K
RUNNERUP Hota, M.D., CFHL receiving the award from Chief Guest, Sri Narayanan
Vaghul, Ex-Chairman, ICICI Bank on January 10, 2019

17
Can Fin Homes Ltd

Operational and Financial Highlights

I – Statistics on Business
Sl Parameters 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
No
1 Loan Approvals (H in cr) 2093 2907 3670 4418 5451 5760 5952
2 Loan disbursements (H in cr) 1814 2548 3346 3923 4792 5207 5479
3 Total Loan outstanding (H in cr) 4016 5844 8231 10643 13313 15743 18381
4 Out of 3 above,
i. Housing Loans (H in cr) 3808.38 5350.27 7325.49 9381.32 11783.59 14,089.08 16,442.98
ii. Non Housing Loans (H in cr) 207.77 493.73 905.8 1261.81 1529.47 1,653.91 1,938.98
5 Borrowings (H in cr) 3538.89 5268.53 7374.51 9,443.96 11,871.95 13,921.02 16,694.44
6 NPA
i. Gross NPA (H in cr) 15.66 12.10 14.35 19.76 27.91 67.49 113.51
ii. Gross NPA % 0.39% 0.21% 0.17% 0.19% 0.21% 0.43% 0.62%
iii. Net NPA % NIL NIL NIL NIL NIL 0.20% 0.43%
7 Average Assets (H in cr)
i. Housing loan 3146.86 4626.88 6261.2 8213.96 10,496.27 12,839.20 15,188.30
ii. Non Housing loan 103.09 320.32 708.62 1063.91 1,387.61 1,554.97 1,662.82
iii. Investments 20.82 20.31 20.18 24.36 32.46 39.79 35.07
iv. Securitised Assets 0 0 0 0 - - -
Total Average Assets (H in cr) 3270.77 4967.51 6990.00 9302.23 11916.34 14433.96 16886.19
8 Average Borrowings(H in cr) 2797.64 4298.98 6388.39 8401.58 10,588.06 12,714.23 14,807.89
9 No. of Branches / Offices
i. Branches 69 83 107 110 134 153 175
ii. Satellite Offices 0 0 10 30 36 20 14
Total No. of Branches / Offices 69 83 117 140 170 173 189
10 No. of Employees 319 387 491 553 626 648 792

II - Statistics on Income & Expenditure

Sl Parameters 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
No
11 Interest Collected (H in cr)
i. Housing Loan 359.35 511.61 690.76 896.10 1,111.31 1,277.03 1,482.70
ii. Non Housing Loan 18.28 44.03 95.76 146.67 192.61 211.40 214.59
iii. Investment 1.08 1.41 1.37 1.64 2.15 2.15 2.26
Total Interest Collected (H in cr) 378.71 557.05 787.89 1,044.41 1,306.08 1,490.58 1,699.55
12 Processing Charges (H in cr) 13.78 20.69 28.41 38.52 45.99 27.07 26.61
13 Other Income (H in cr) 0.21 0.26 0.73 0.61 1.06 4.33 5.19
14 Total Income (H in cr) 392.70 578.00 817.03 1083.54 1353.12 1521.98 1731.35
15 Interest Paid (H in cr) 283.01 422.76 610.29 743.48 884.03 981.02 1,169.10
16 Net Interest Income (NII) (H in cr) 95.69 134.29 177.60 300.93 422.05 509.56 530.45
17 Staff Cost (H in cr) 15.73 17.90 24.75 33.06 39.36 44.82 41.40
18 Other Expenses (H in cr)
i. Establishment 6.05 7.15 8.38 9.77 12.32 12.49 14.29
ii. DSA Commission 4.33 6.33 7.56 7.78 9.91 9.16 10.36
iii. Professional fees – IBS 1.00 1.93 2.39 2.78 2.99 3.29 3.55
iv. Others incl CSR 4.42 5.38 6.13 6.66 11.55 14.93 19.08
19 Depreciation (H in cr) 1.16 2.01 3.73 3.46 3.73 3.09 2.97
20 Bad Debts written off (H in cr) 3.29 3.22 2.10 3.29 0.85 - -
21 Operating Cost (H in cr) 32.69 40.70 52.94 63.50 79.86 87.78 91.65
22 Total Cost (H in cr) 318.99 466.68 665.33 810.27 964.74 1,068.80 1,260.75
23 Operating Profit (H in cr) 73.71 111.32 151.70 273.27 388.38 453.18 470.60

18
 Strategic Overview | Annual Report 2018-19

Sl Parameters 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

No
24 Provisions & Taxes (H in cr)
i. Standard Assets 6.85 8.00 12.00 14.00 10.65 2.10 0.40
ii. Non Performing Assets -8.24 -3.56 2.25 5.41 8.15 20.00 0.69
iii. Income Tax 20.20 30.93 43.23 80.00 115.13 157.41 173.55
iv. Deferred Tax Liability/(Asset) 0.78 0.01 7.98 16.75 19.78 -12.52 -0.79
v. Prior Period Adjustment 0.00 0.23 0.00 0.00 -0.59 0.00 0.00
vi. Other Comprehensive income (H in cr) 0.00 0.00 0.00 0.00 0.00 -0.42 -0.03
25 Net Profit (H in cr) 54.12 75.71 86.24 157.11 235.26 286.62 296.76
26 Share Capital (H in cr) 20.49 20.49 26.62 26.62 26.62 26.63 26.63
27 Reserves (H in cr) 371.68 431.81 744.87 851.42 1,049.68 1,460.35 1,755.55
28 Deferred Tax Liability DTL /(Assets DTA) -4.87 -4.86 21.61 56.87 113.65 -23.24 -24.01
(H in cr)
29 Shareholder’s Funds – Tier I (H in cr) 387.3 447.44 771.49 878.04 1,076.30 1,486.98 1,782.18
30 Number of Shares (in cr) 2.05 2.05 2.66 2.66 2.66 13.31 13.31
Tier II Capital (H in cr)
31 - SA Provision 18.00 26.00 38.00 52.00 62.65 64.75 65.15
- Tier II Bonds 0.00 0.00 100.00 100.00 100.00 100.00 100.00
Total Tier II Capital (H in cr) 18.00 26.00 138.00 152.00 162.65 164.75 165.15
32 Dividend
i. Percentage 40 65 70 100 100 100 100
ii. Amount (H in cr) 8.20 13.32 18.64 26.63 26.63 26.63 26.63
iii. Payout Ratio excl tax % 15.15% 17.59% 21.61% 16.95% 11.32% 9.29% 8.97%
iv. Payout Ratio incl tax % 17.61% 20.58% 25.36% 20.40% 13.62% 11.18% 10.82%
v. Dividend yield % 2.94% 3.41% 1.15% 0.87% 0.47% 0.41% 0.57%
33 Book Value (BV) (FV of share H 2) 191.30 220.63 290.03 329.84 404.32 111.72 133.90
34 Earnings per Share (EPS)(H) 26.42 36.93 32.42 59.02 88.38 21.49 22.29
35 Return on Average Equity (ROE) % 14.84% 18.14% 17.75% 19.05% 24.08% 21.30% 18.16%
36 Return on Average Asset (ROA) % 1.65% 1.52% 1.23% 1.69% 1.97% 1.98% 1.76%
37 Closing Stock Price (CMP/NSE) (H) 135.90 190.70 607.40 1154.35 2121.45 484.50 348.85
38 Market Cap (MC) (H in cr) 278.60 390.94 1615.68 3070.57 5643.06 6451.32 4645.08
39 CMP/ Earnings (P/E Ratio) 5.14 5.16 18.73 19.56 24.00 22.50 15.65
40 CMP/ Book Value (P/B Ratio) 0.71 0.86 2.09 3.50 5.25 4.34 2.61
41 Risk Weighted Assets (H in cr) 2631.41 3421.11 4945.71 4979.64 6521.71 7751.27 9180.41
42 Capital Adequacy Ratio (CAR) 15.40% 13.84% 18.39% 20.69% 18.50% 19.08% 16.44%
43 Net Interest Margin (NIM)
a) Conventional 2.93% 2.71% 2.54% 3.24% 3.54% 3.53% 3.14%
b) Including PC 3.35% 3.12% 2.95% 3.65% 3.93% 3.71% 3.29%
44 Cost to Income Ratio 29.80% 26.22% 25.61% 18.67% 17.02% 16.23% 16.30%
45 Average Business Per Branch (H in cr) 49.38 61.65 67.15 86.71 97.88 106.58 111.86
46 Average Business Per Employee (BPE) 11.43 13.90 15.90 18.52 20.68 23.92 25.99
(H in cr)
47 Average Yield on Assets 11.58% 11.22% 11.27% 11.24% 10.96% 10.33% 10.06%
48 Average Cost of Borrowings 10.11% 9.83% 9.55% 8.75% 8.35% 7.70% 7.90%
49 Interest Spread 1.47% 1.39% 1.72% 2.49% 2.61% 2.63% 2.17%
50 Gearing Ratio 9.14 11.78 9.57 10.76 11.03 9.36 9.37

Notes:
1. Sl No. 32 for FY 2018-19 is subject to approval of Members at the AGM to be held on July 17, 2019.
2. Sl No. 30, 37 and 39 -Equity shares of J10 were subdivided into equity shares of J2 each w.e.f October 13, 2017.
3. Sl No. 27, 29 and 33 is without considering the appropriations for Dividend and Dividend Tax.
4. Sl No. 35 is having an impact of Deferred Tax Liability and tax on special reserve due to IND AS
5. Sl No. 42 for FY 2018-19 - CAR is after considering the Dividend cost in the Net owned funds. Further, CAR for 18-19 has reduced due to Term deposit
amounting to J257.00 Crore(matured on April 10, 2019) held with Canara Bank and the same is reduced in the computation of Net Owned funds. The
CAR without considering the aforesaid term deposit would have been 19.24%.
FY 2017-18 and 2018-19 figures are as per IND AS
19
Can Fin Homes Ltd

Profile of Board of Directors

1 2 3

4 5 6 7

1. SMT BHARATI RAO 2. SHRI SARADA KUMAR HOTA

Chairperson Managing Director

Smt Bharati Rao was appointed by the Board of Directors on Shri Sarada Kumar Hota has been appointed as the Managing
September 05, 2017 as an Additional Director (Independent) Director of Company w.e.f May 19, 2016. The members have
and she has been appointed by the members as an Independent approved his appointment as Managing Director of the Company,
Director at the 31st Annual General Meeting(AGM) held on at the 29th AGM of the Company held on July 20, 2016 for a tenure
of three years subject to further extension of tenure by Canara
July 18, 2018. She is an Independent and Non-Executive
Bank. The bank has extended the tenure of Shri S K Hota upto
Chairperson of the Company.
October 05, 2019 and an agenda relating to his re-appointment
forms part of the Notice of the ensuing AGM.
She is a post graduate degree holder in Economics (M.A.)
and Certified Associate of Indian Institute of Bankers (CAIIB). Shri Hota, a Post-Graduate in Agricultural Science, is a senior
She has more than 42 years of experience in the banking banker and General Manager of Canara Bank, with 29 years of
industry, has held both domestic and international positions commercial banking experience, having served across the Country.
and was in charge of areas such as Project Finance, Credit &
Risk Management, International Banking, Human Resources, Prior to his posting to the Company he was the Circle head of
Nagpur and Jaipur Circles of Canara Bank for 3 years followed by
Mergers and Acquisitions. She had served as the Deputy
a brief stint at the Recovery Wing of the Bank at Head Office.
Managing Director of SBI and she had held concurrent charge
of SBI’s 7 Associate Banks and 7 Non-Banking Subsidiaries. Apart from his expertise in retail operations, he also carries with
him the experience of working in the areas of Human Resources,
Smt Bharati Rao is currently a member on the Boards of five Strategic Business Planning and Profit Planning at the Head Office
listed Companies viz. Cholamandalam Investment and Finance of the Bank.
Company Limited, Carborundrum Universal Limited, Neuland
Laboratories Limited, CanFin Homes Limited and Suprajit
Engineering Limited (w.e.f April 01, 2019) and five unlisted
Companies viz. SBI Capital Markets Limited, SBICap Securities
Limited, SBI Global Factors Ltd, Tata Teleservices Ltd. & Delphi
TVS Diesel Systems Ltd. She is also an Advisor to Brickworks
Ratings India Pvt. Ltd.

20
 Strategic Overview | Annual Report 2018-19

3. SHRI DEBASHISH MUKHERJEE 5. SHRI SHREEKANT M BHANDIWAD

Director Deputy Managing Director

Shri Debashish Mukherjee has been appointed as an Additional Shri Shreekant M Bhandiwad has been appointed as the Deputy
Director (Non-executive Promoter) w.e.f March 12, 2019. Managing Director of Company w.e.f April 28, 2018.

Shri Mukherjee is an MBA (Finance) from the University of Kolkata. He is a Post-Graduate Degree holder in Agricultural Science viz.,
He started his career with Punjab National Bank as a Financial M.Sc.(Agri) and a CAIIB. Shri Shreekant Mohanrao Bhandiwad
Analyst in scale II in 1994. He joined United Bank of India as an started his career as an Officer in Canara Bank in the year 1994.
Asst. General Manager (Credit) in the year 2006. He worked in During his service in the Bank he has headed different branches,
various capacities at Regional Offices, headed Corporate Finance Circle Offices and various departments at the Circle and Corporate
Branch at Kolkata and was Regional Manager of Bihar Region. level. Shri Bhandiwad is a senior banker with 25 years of
He has vast experience in Corporate Credit, Credit Monitoring and commercial banking experience having served across the States of
Recovery. He is an avid reader and has travelled extensively. Haryana, Rajasthan and Karnataka.
Shri Debashish Mukherjee has taken charge as Executive
Before his posting to the Company, he was heading the Rajasthan
Director of Canara Bank on February 19, 2018. He is overseeing
operations of Canara Bank as Head of Jaipur Circle of the Bank.
the functions of Risk Management (including Capital planning),
Prior to this, he had worked in Jaipur Regional Office, Bengaluru
Financial Management and subsidiaries, MSME, Credit
Cantonment and Yediyur Branches. He had also worked in
Administration & Monitoring, stressed Assets Management
Bengaluru Langford Town, Davanagere Regional Office and also in
and Recovery, Inspection, Treasury, International Operations &
Head Office, Bengaluru. Apart from his successful tenure at various
Corporate Customer Relations. He is currently a member on the
places as above, Shri Bhandiwad carries with him the experience
Boards of Canara Bank, Canara Robeco Asset Management
of over eight years at the Managing Director’s Secretariat in the
Company, Canara HSBC OBC Life Insurance Company, Canara
Bank.
Bank Securities Limited, Canbank Venture Capital Ltd. and a non-
profit organization viz., Higher Education Financing Agency. Out of The Agenda relating to his re-appointment as a Director forms part
seven companies, he holds Directorship in two listed companies. of the Notice of ensuing AGM.
The Agenda relating to his appointment as a Director forms part of
the Notice of ensuing AGM.
6. DR. YELURI VIJAYANAND
Director
4. SHRI G NAGANATHAN
Director Dr Yeluri Vijayanand has been appointed as an Additional Director
(Non-executive independent) w.e.f. August 29, 2018.
The Board of Directors have appointed Shri G Naganathan,
Dr Yeluri V Vijayanand is PhD in Economics (2011) from University
FCA, as a director of the Company on September 07, 2016. He
of Mysore, M.A in Economics (1967) from Bangalore University,
is an Independent Non-Executive Director of the Company.
Bachelor of Laws (1969) from Bangalore University and CAIIB
Shri G Naganathan is a rank holder in Chartered Accountancy and (1978) from Indian Institute of Bankers.
Cost Accountancy. He has completed the Diploma in Information
Systems Audit, Courses in Certified Information Systems Auditor Dr Vijayanand retired from State Bank of India as Deputy
and also Valuation Certificate. Presently, he is the Managing Managing Director on August 31, 2007 after serving for more
Partner in M/s. R K Kumar & Co., Chartered Accountants. He has than 37 years. As DMD and Group Executive of Associates and
put in a practice of 35 years in R K Kumar & Co. His areas of practice Subsidiaries, he was the nominee director of SBI in all Associate
and expertise include statutory and related attestation services, Banks, and non-banking subsidiaries, as also in ARCIL, Thomas
consultancy in direct taxes and FEMA and management advisory Cook India, and CIBIL. He was also on the boards of three overseas
services. Shri G Naganathan is involved in the audit of banking and subsidiaries/joint ventures of SBI. The other prominent positions
Insurance companies, representation before various adjudicating held by him were Managing Director of State Bank of Mysore,
authorities for the last three decades. He also has been involved in President and COO of SBICAP, Chief General Manager, Corporate
monitoring of large sick companies on behalf of consortium of banks. Accounts Group, General Manager (Commercial), Chennai and Vice
President, SBI New York. Post retirement from SBI, he worked as a
The Agenda relating to his re-appointment as an Independent Corporate Advisor in Nagarjuna Fertilizers and Chemicals Limited,
Director forms part of the Notice of ensuing AGM. Hyderabad for nine years. He was a non-executive director in

21
Can Fin Homes Ltd

three group companies. He was also an independent director Shri S Subramanian is a graduate in B.Sc., a Diploma holder in
in SBI Global Factors Limited, and Caparo Financial Solutions Company Law and a Certified Associate of Indian Institute of
Limited. He is a visiting faculty at State Bank Staff College and Bankers (CAIIB).
Academy, JNIDB, Institute of Public Enterprise, NALSAR - IIRM,
BITS Pilani - Hyderabad Campus, Osmania University, Bangalore Shri S Subramanian started his career in Canara Bank in the
University and University of Mysore. He was awarded a PhD in year 1981 and has more than 36 years of commercial banking
Economics by the University of Mysore in 2011 for his thesis on experience. During his service in the Bank he has handled
“Impact of Banking Regulations on Indian Commercial Banks: A various duties at various branches. He has worked in the Credit
study of current and emerging issues”. He also contributed articles Administration & Monitoring Wing (Head Office Bengaluru),
to academic and professional journals, and took part in several Chandigarh Circle Office, Prime Corporate Branch, Bengaluru,
conferences and seminars. Coimbatore Circle Office (Core Credit Group), Perundurai SME
Branch, Overseas Business cell (Madurai Circle Office), Kolkata
The Agenda relating to his appointment as an Independent Overseas branch and various other places. Currently he is the
Director forms part of the Notice of ensuing AGM. General Manager of Prime Corporate Credit Wing, Canara Bank,
Head Office, Bengaluru. He is a nominee director in Canbank
Venture Capital Ltd.
7. SHRI S SUBRAMANIAN
Director The Agenda relating to his appointment as a Director forms part of
the Notice of ensuing AGM.
Shri Shankara Narayanan Subramanian (S Subramanian) has been
appointed as an Additional Director (Non-executive Promoter)
w.e.f. October 06, 2018.

22
 Statutory Reports | Annual Report 2018-19

Management Discussion and Analysis

Indian Economic Scenario 6.5 percent. While lowering the policy rate, the policy stance
was also altered to “neutral” from “calibrated-tightening”. The
India, in recent years, has emerged as one of the most vibrant next monetary policy review of April 2019 witnessed another
economies in the world. The economic growth of the country 25 basis points reduction in the repo rate to 6 percent, in order
is currently more than the major economies of the world to lower cost of borrowing for banks and to support India’s
including China, topping the list of fastest growing emerging growth momentum. The successive rate cuts are in consonance
market economies (EMEs) in the world. Indian economy has with achieving the medium-term objective of maintaining
witnessed an accelerated pace of domestic reforms in recent inflation under the 4 percent level while supporting growth
years. These reforms include, inter alia, the flexible inflation-
targeting monetary policy framework, the Insolvency and In addition, bank credit growth rose from 7.0% in FY2018
Bankruptcy Code (IBC), the Goods and Services Tax (GST) to 11.9% in FY2019 chiefly on higher credit to services and
and steps for enhancing foreign investments by liberalising personal loans. Within the service sector, credit to nonbank
the FDI regime and undertaking efforts to provide a conducive financial companies enjoyed the largest increase. Credit
business climate. to infrastructure also picked up over the past few months,
although from a low base.
India is widely believed to remain world’s fastest-growing
major economy in the medium to long term despite registering Outlook
an annual growth of 6.8%. The fall in GDP as compared to
Moving ahead, the GDP growth is projected to be 7.5% in
previous year was largely due to temporary stress in NBFCs
FY20, in accordance with the recent revision to the national
affecting the consumption pattern. The industry growth sharply
account statistics that indicated relatively softer underlying
increased to 7.7% in FY19 on account of strong manufacturing,
momentum. The medium-term challenge for the Indian economy
construction, and utilities. The index of industrial production
is to stimulate demand. Fiscal policy at the moment is unlikely to
(IIP) demonstrated a robust growth, reflecting strong demand
support demand as the government, in order to limit any further
for capital equipment, construction goods, and consumer
slippage in the revised fiscal deficit target, is likely to adjust both
durables. Further, the financial, real estate and professional
revenue and capital expenditures downwards. However, the
services sector increased marginally to 7.3% in 3QFY19 as
recent pickup in investment growth is anticipated to continue
compared to 7.2% in 2QFY19. Gross Value Added (GVA) growth
in the coming fiscals, though at a low pace. A significant
in construction sector also increased to 9.6% in 3QFY19, from
improvement will be observed in the non-performing loans by
8.5% in 2QFY19.
the banks, resulting in easing of credit restrictions on certain
The Reserve Bank of India (RBI), in the February 2019 monetary banks, which in turn, boost lending to industry.
policy review lowered its policy repo rate to 6.25 percent from

Quarterly GDP Growth (%) Growth in credit and deposits

9.5 30
9.2
9.0 25
8.7
8.5
8.1 8.0 20
8.0 7.7
7.4 15 13.3
7.5
6.8 6.8 7.0 10
7.0 6.6
5 10.0
6.5 6.0 5.8
6.0 0
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19

5.5
3QFY17

4QFY17

3QFY18

4QFY18

3QFY19

4QFY19
1QFY17

1QFY18

1QFY19
2QFY17

2QFY18

2QFY19

Aggregate deposits (% ann) Bank credit (% ann)

Source: MoSPI, GoI Source: Database on Indian Economy, RBI

23
Can Fin Homes Ltd

Indian Housing Scenario iv. For every lakh invested in the housing sector, 2.69 new
jobs are created in the economy. With induced effect (i.e.
India’s urban population is estimated to have grown at a resultant increase in demand for output on account of
CAGR of 2.8% over 2001-2011, resulting in an increase in the increased income), the number of jobs created would be
urbanization rate from 27.8% to 31.2%. The surge in urban 4.06 (3.95 informal and 0.11 formal).
population was supported by an increase in million-plus
cities. The number of urban agglomerations with more than 1 v. Every additional rupee invested in the housing sector will
million population increased from 35 in 2001 to 53 in 2011. add H1.54 to the GDP and with household expenditure
The growth of urbanization at such unprecedented level poses considered, this is going to add H2.84.
the challenge of meeting the increasing demand for affordable
vi. For every rupee invested in creation of housing, H0.12 gets
housing in cities.
collected as indirect taxes.
Rapid urbanization, growth in population and increase in
The Working Group on Rural Housing for the 12th Five Year
nuclear families has created demand for housing in India.
Plan estimated a total housing shortage of 43.67 million houses
Despite the constant focus on the housing segment, housing
for the plan period (2012-17). The working group assumes that
in India is far from being adequate. The shortage of housing
90% of the total rural housing shortage i.e. 39.30 million affects
in India has been a constant problem, deterring the economic
BPL families.
growth of the country. The government in its 12th Five Year
Plan gave this issue utmost importance and focused on The demand for affordable housing will remain strong on
increasing the amount of housing units available both in the account of rapid urbanization and increasing income levels.
urban as well as the rural sector. As per the estimates of the The robust demand for affordable housing together with the
12th Five Year Plan, the shortage of housing in urban segment fillip provided by the Government of India under PMAY to the
of society stood at 18.78 million according to the 2011 census. sector offers good opportunity for growth to the developers as
well as the financial institutions.
The Economically Weaker Section (EWS) has three-fourth of
the shortage and the Lower Income Group (LIG) has a quarter On the demand side, the inclusion of two new middle-income
of housing shortage approximately. Housing shortage in urban categories under CLSS is likely to improve affordability for a
areas could be attributed to the reasons of congestion and wider set of borrowers leading to increased growth potential
obsolescent houses. in the affordable housing segment. The various initiatives of
Government viz. granting infrastructure status to affordable
In rural areas, house is a catalyst for a change in socio-
housing, establishment of a dedicated Affordable Housing Fund
cultural pattern and other characteristics of human life,
and incentives offered to home buyers as well as developers in
including economic development. Since it forms a nucleus for
the union budget announcements etc., will facilitate creation of
the operations of many human activities and is an essential
a sustainable market for affordable housing.
contributory factor for improvement in life, it has a significant
bearing on the policies formulated for the housing sector. The challenges in meeting demand for affordable housing
include high cost of land, absence of clear title, delay in project
A Study on Impact of investments in the housing sector on
approval which acts as deterrent for participation by financial
GDP and Employment in the Indian Economy was conducted
institutions and real estate developers. Implementation of
by National Council of Applied Economic Research (NCAER)
RERA not only promises to transform the Real Estate Industry
in 2014 based on the inter-industry linkages of housing
into an organized, transparent and customer friendly sector, but
investment. The key findings of the report were as follows:
also provides the much needed comfort to lending institutions
i. The residential construction i.e. housing sector accounts for investment in creation of housing stock.
for 1% of GDP and 6.86% of the employment.
Another segment which offers growth potential in residential
ii. Housing sector is fourth largest employment generating housing is Rental Housing. Rental Housing despite being the
sector. object of considerable attention and support in developed
economies is yet to gain momentum in the Indian housing
iii. 99.4% of the jobs in housing sector are informal jobs. spectrum. It can act as an alternative solution to ownership

24
 Statutory Reports | Annual Report 2018-19

housing in India where there is a large population, who cannot housing growth in India. The rise of population, shift
afford to buy a home, may not qualify for a mortgage or may towards nuclear families and government’s push on
not want to own a home. Also there are more and more people the affordable housing along with an acute shortage of
who are living in poor, informal housing conditions. The success housing is expected to drive the housing demand.
of rental housing would depend on the enabling environment
viz. laws and regulations and the capacity to raise significant • Affordability: There has been a significant rise in per
financial resources from investors and financiers. The fiscal capita disposable income, while the affordable mortgage
treatment of the sector by the public authorities can also play a rates have come down due to competition as well as
decisive role in expanding an affordable rental sector. government’s ‘credit linked subsidy scheme’, making home
buying easier for common Indians. Further, the effective
Growth Drivers for Housing borrowing rates have also significantly reduced on account
of tax incentives declared by the government while property
The Indian real estate market sector has always been in a state prices have remained largely benign over recent years.
of flux backed by the changing economic environment and
the evolving real estate laws. These dynamics have led both • Social status: Owning a home enhances the sense of
the real estate developers and buyers to embrace the recent self-worth of a person and facilities upgradation of social
changes in this sector. status. Thus, a larger part of housing loans are used for
self-occupied houses rather than investments. This is the
• Rapid increase in population: India’s urban population chief reason behind lower defaults in the loans for self-
is expected to surpass 850 million by 2050, of which occupied houses.
50 percent is expected to be in the age group of 19-58
years, which is the key demographic core to the consumer • Housing has developed as a safe asset class: As per RBI
demand phenomenon. With increasing disposable data, nearly 1.6% NPA for mortgages compare favourably
incomes and nuclear families, this will lead to higher to 19.3% for industrial loans and 5.7% for the services
demand for housing and organized retail consequently. segment. Thus, lower capital consumption in addition to
lower risk weightings has made mortgages more profitable
• Availability of Land and labour: Availability of land for lenders in India vis-à-vis other loans. Furthermore,
and labour at reasonable rates compared to metro cities India has lower household leverage in comparison to its
are leading to affordable prices of real estate in city peers and this makes it less exposed to an adverse credit
peripherals and Tier II/III locations. Land is one of the major cycle, thereby, reducing the risk of default.
components for a typical real estate project. Thus, lower
land costs will lead to affordable rates of residential units • Growth in Tourism: One of the major factor contributing
and rentals in case of retail projects. to the rapid acceleration in the real estate sector is the
unending growth of tourism in India. The growing inflows
• Push towards affordable housing: As a result of from tourists are expected to provide a boost to the
Government’s indomitable push towards affordable hospitality sector. India’s tourism is expected to touch US
housing, the segment is expected to be the next big thing $ 418.9 billion by 2022.
in the Indian investment scenario. Developers have also
started showing interest in low-cost housing opportunities Government Initiatives
as against segment’s initial down-market image. The
The Real Estate Sector in India has been observing a restoration
government’s mission of ‘Housing for All by 2022’, the
with several structural changes initiated by the government.
75th year of country’s independence, is lined up to create
The Government has kept the housing sector on a high growth
a huge demand for affordable housing. The project aims to
trajectory by offering tax and fiscal incentives to builders and
bridge the estimated housing shortage of 10 million urban
consumers, and through new consumer friendly policies.
houses under PMAY(U) and 29.5 million rural houses under
PMAY-G. a. Real Estate (Regulation & Development) Act, 2016
(RERA):
• Per capita home ownership is one of the lowest in India:
India has a very low penetration in the mortgage market The Real Estate Act which came into force in March 2016,
as against peers in the developed and the developing gave the Indian real estate industry its first regulator. The
economies. This provides plenty of opportunities for act ensures an equitable and fair transaction between

25
Can Fin Homes Ltd

sellers and buyers in the primary housing market and Outlook for Real Estate Industry
provides the much needed assurance of quality and timely
delivery to the home buyers. The Indian Real Estate sector is projected to reach $ 180 billion
by FY 2020. In addition, the sector is anticipated to generate
RERA Act has laid down a regulatory framework which nearly 15 million jobs over the next 5 years. The Indian
will change the way the real estate sector operates in the government is planning to make an investment of about US
country. The sector is headed towards a new horizon of $ 1 Trillion under the “Housing for all” initiative by FY 2025.
transparency and accountability under RERA regime. It is projected that affordable housing will drive the demand
factor for the real estate sector for the next 10 years. Among
b. Pradhan Mantri Awas Yojana (PMAY) Urban Scheme the commercial segment, the warehousing space is expected
to reach 247 million sq. ft. in FY 2020. While the Grade A office
The Pradhan Mantri Awas Yojana (PMAY) was launched
space absorption is projected to cross 700 million sq. ft. by FY
in 2015 comprising two components – PMAY (Rural)
2022. Real Estate developers, in order to meet the growing
and PMAY (Urban). The PMAY(Urban) subsumes all the
needs for managing multiple projects across major cities, are
previous urban housing schemes and aims at ‘Housing
investing in centralized processes to source material.
for All’ by the Year 2022. PMAY initially announced the
Credit Linked Subsidy Scheme (CLSS) to finance home Housing Finance Sector Overview
buyers in the Lower Income Category and Economically
Weaker sections (LIG/EWS). In January 2017, it extended The Housing Finance Companies (HFCs) form an integral
the benefit to Middle Income Group (MIG I & II) households. part of the NBFCs, in the Indian financial system. The market
borrowings of this sector have increased significantly over the
It is targeted to cater to the housing shortage of approximately past five years. This sector has introduced products such as
3.95 Crore houses (1 Crore urban & 2.95 Crore rural) and loan against property (LAP), corporate and developer loans
fulfil government vision of ‘Housing for All’ by 2022. Since and lease rent discounting buckets to satisfy the needs of
the launch of the scheme PMAY(U)in 2015, 73 lakh houses big-ticket borrowers. With these developments, the sector
have been approved under the scheme, out of which 15 lakh reported an estimated growth of 13%-15% during the year.
houses have been completed, upto February 2019. As of September 2018, India’s housing loan portfolio has been
registered at H 15 lakh Crore, out of which HFCs comprise over
Post PMAY announcement in 2015, there has been a
H6 lakh Crore.
consistent increase in the proportion of new launches with
smaller unit sizes of carpet area < 60 sqm to total unit The growing affordability for the first time home buyers
launches per year. The benefit available to the buyer as well supported by the PMAY (Pradhan Mantri Awas Yojana), is
as the developer under the above scheme by way of subsidy projected to accelerate housing credit growth between 17% to
/tax sops is bound to enhance the efficacy of the scheme. 19%. HFCs would require to tie-up incremental funding needs
of around 4 lakh Crore for meeting growth plans and replacing
In tune with the government’s mission, the Company’s
the maturing liabilities by FY 19.
novel concept of Affordable Housing Loan centres (AHLCs)
to provide loans under the Credit Linked Subsidy Scheme
New Launch Supply by Budget Segmentation
(CLSS) for the Low Income Group (LIG) and Middle Income
Group (MIG) segment under Pradhan Mantri Awas Yojana
16% 9%
17% 11%

13% 7%
16% 8%

15% 8%
14% 9%

(PMAY) in peripheral areas of Tier I, II and III cities, and the

growth in these centres is encouraging.

c. Smart City Project

37%

39%

35%
36%

36%
39%

As per the Smart City Project, the Indian government has

35%

40%

37%

38%

45%

planned to build 100 smart cities by 2025. In September

40%

2018, the smart cities mission has received an allocation

of H2.04 lakh Crore covering selected 99 cities. The projects
worth H20,852 Crores are in progress for the smart cities FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
extension. The prime agenda for the Smart Cities Mission < H40 Lakh H40 Lakh - H80 Lakh
is to promote core infrastructure and a sustainable life for H80 Lakh - 1.5 Cr > H1.5 Cr
the citizens of India.
26
 Statutory Reports | Annual Report 2018-19

Company Overview Can Fin Homes is the first housing finance company to have
introduced Affordable Housing Loan Centres (AHLCs) to lend
Can Fin Homes Limited (CFHL) is a key player in the housing exclusively in the peripheral areas of the Tier 1, Tier 2 and Tier
finance sector in India and one of the few Institutions permitted 3 cities. Since the land and building value are more affordable in
by the Regulator, National Housing Bank (NHB, to accept these areas, lending under the Affordable Housing Loan, Urban
deposits. It has a pan-India presence with 154 branches, 21 & Rural schemes and the Credit Linked Subsidy Scheme (CLSS)
Affordable Housing Loan Centres & 14 Satellite Offices spread under Pradhan Mantri Awas Yojana (PMAY) is feasible. Currently,
across 21 states and union territories. CFHL has been offering a we have 21 AHLCs and plan to increase the number to 30.
range of loan products including housing loans as well as non-
housing loans, at competitive interest rates which are designed The objective of Can Fin Homes, as envisaged when it was
to cater the needs of its customers especially salaried and instituted 31 years ago, was to promote home ownership and
professional personnel. increase housing stock in the country and the noble cause
continues. As our target segments are LIG and MIG-I borrowers,
Our focus so far has mainly been on Housing Loans to the average ticket size of our housing loans pegged at H18
individuals with 89.5% of the loan book comprising of Housing lakh, is more by default rather than design, considering the fact
and only 10.5% for Non-Housing. Most of our borrowers are that the affordability of the homes acquired and their repaying
first time home buyers as evidenced by the average age of our capacity determines the ticket size.
incremental borrowers at around 40 years.

SWOT Analysis

Strengths Weaknesses Opportunities Threats

• Diversification in loan • A lot of concentration is • Increasing demand for • Increasing price of land
offerings under housing on the southern part of houses in the suburbs of and property.
and non-housing loans to the country, as 70% of India.
cater the requirements of the branches are located • Stiff competition from
middle and lower income in this region. This leaves • Development of Smart public and private banks.
group. a lot of scope to expand Cities along with
increasing population. • Uncertainties in Real
branch network all over
• Increasing geographical Estate Sector.
India.
reach, with 152 branches • “Housing for All” - Push
by Government of India • Rising cost of funds
with 21 Affordable • Provides financial assistance
Housing Loan Centres & only based on evidenced through PMAY-CLSS
14 Satellite Offices spread income. schemes.
across 21 states / union
•
In a disadvantaged • Branch expansion to
territories.
position with regard to ROI Non-South tier II/III
• Faster Turn Around Time compared to banks. growth centres in recent
(TAT) for loan approval. years - full potential is yet
to be tapped.
• Strong parentage with
established track record.

•
Low risk portfolio
dominated by housing
loans to salaried class.

27
Can Fin Homes Ltd

Business Segment Overview 1) Introduction of two new housing loan products, Affordable
Housing Loan Urban (AHL-U) and Affordable Housing
Lending Operations Loan-Rural (AHL-R) is expected to give a fillip to our
lending under the EWS and LIG segments.
Over the years, we have built upon our business to widen
our product offerings to meet the changing customer needs. 2) Loans for purchase/construction/repairs & renovation of
Today our portfolio consists of 24 loan products, under housing Individual Houses/Flats up to H 10 lakh to borrowers who
as well as non-housing, tailor made for the niche customer are getting salary by cash – IHL (Cash Salary) scheme.
segment we cater to.
Lending mix as on March 31, 2019
True to its main objective of improving home ownership in the
country, CFHL continues to remain a purely retail home loan 10.5%

player in LIG and lower MIG space. At the end of the year under
review, Housing loans constituted 89.5% of the total loan book
(89.5% at previous year end) and the segment grew by around
17% to reach H16,443 Crore. Non Housing Loans, at H1,939 89.5%
Crore remained subdued at around 10.5%.
Housing loans
Housing loans and other loans sanctioned (loan approval) Non-housing loans
were to the extent of H5,952 Crore compared to previous
year’s H5,760 Crore. The loan portfolio as at March 31, 2019
amounted to H18,381 Crore as against H15,743 Crore in the
Deposit Schemes
previous year, an increase of 17% YOY.
CFHL accepts two types of deposits viz; Fixed and Cumulative
To capture the growth opportunities, the Company has
Deposits. These schemes are designed by CFHL to cater to the
increased its branch network across its area of operations. The
needs of the common man. Effective 19th July 2018, interest
number of outlets of the company at the end of the financial
rate structure under both deposit schemes has been revised.
year was 189, with an increase of 22 branches during the
An additional rate of 0.50% continues for senior citizens.
year. As a strategic shift in our expansion plan, we have rapidly
CFHL has also revised the minimum deposit amounts for fixed
grown in non-metro Tier II and Tier III growth centres, recording
deposit scheme to H2 Lakh with the option of quarterly, half-
a loan book growth of 30% in non-metro centres and 11% in
yearly and yearly interest payment and H10 lakh for monthly
metros.
interest payment. The minimum deposit amount for Cumulative
The customer profile continues to be dominated by the deposits continues to be H20,000/-.
salaried and professional category. The average ticket size of
Marketing & Distribution
incremental housing loan and non-housing loans are H18.12
lakh and H9.15 lakh respectively. CFHL has been successful in expanding its presence in
different parts of the country. The Affordable Housing Loan
Loan Products
Centres launched by the company have been attracting more
CFHL’s product basket comprises housing loans for business opportunities, as it has reached several potential
construction, purchase of new dwelling units, repairs and areas that were not covered in the past. CFHL has a Pan
renovation, purchase of site, composite loan for purchase India presence with 154 branches, 21 Affordable Housing
of site and construction of house thereon, loans for Urban / Loan Centres (AHLCs) and 14 satellite offices spread across
Rural housing etc and Non-housing loans like mortgage loans, 21 states. During FY 19, additional 22 branches have been
personal loans to existing customers, loans for commercial opened in Chattisgarh, Uttarakhand, Gujarat, Andhra Pradesh,
property, loans for rent receivables etc. The following new loan Telangana, Karnataka, Madhya Pradesh, Uttar Pradesh,
products have been introduced during the year: Rajasthan, Punjab and West Bengal. All branches are linked to
its registered office based at Bangalore through a core banking

28
 Statutory Reports | Annual Report 2018-19

system. During the current fiscal, CFHL envisages opening 20 Risks and Concerns
branches / AHLCs in the first phase.
Risk is an integral part of the Company’s business and effective
The Company continues to source about 50% of its business management of its risk is critical to the functioning of any
through Direct Selling Agents (DSAs) in its branches. DSAs are Housing Finance Company.
permitted to source loan proposals from eligible customers on
behalf of the organization. However, the DSAs only provide At CFHL, we take cognizance of the prevalent risks that could
leads to the Company and the entire loan process is handled be detrimental to our Company and ensure that a constant vigil
by Company Officials. During the year, there were 748 active is maintained and necessary measures are taken to manage
DSAs and the business secured through them amounted to and offset the same. The Company is exposed to risks such
53% of the sanctions and 51% of disbursements for the year as Credit risk, Interest rate & Market risk, liquidity risk and
as against 46% & 48% respectively during the previous year. operational risk.

Funding Sources Credit Risk Assessment:

CFHL raises resources for its lending activities by way of Credit risk is the risk associated with our primary activity of
term loans, credit lines from Banks, refinance from National providing home loans and is an inherent threat to our business.
Housing Bank, money market instruments like Non-convertible
Mitigation:
debentures(NCDs, Commercial Papers (CPs)and deposits from
the retail market. As on 31st March 2019, the borrowings of Sound and strategic credit policies have been framed to aid the
the company stood at H16694 Crore. management of credit risk.

Funding Mix as on March 31, 2019 All new proposals undergo a credit appraisal process which
includes a comprehensive credit risk assessment procedure,
2%
standardized for analysing related qualitative and quantitative
information of each borrower, in order to optimally ascertain
their individual creditworthiness. The services of various credit
assessment agencies like the Credit Information Bureau of
India Limited (CIBIL), Experian etc., and the Central Registry
34% 52% of Securitisation Asset Reconstruction and Security Interest
of India(CERSAI) are utilised by the Company to evaluate the
potential risk of a new borrower.

12% As per our Risk Management Policy, the creditworthiness of

the existing borrowers is periodically assessed at the time of
annual resetting of interest rates and the internal evaluation
Banks NHB Market Borrowings DEP
and monitoring mechanisms set up like Offsite Transaction
Monitoring System(OTMS) provides the required inputs and
Ratings information for remedial action.
a. For Deposits: [MAAA with a stable outlook, highest- Special Mention Accounts (SMAs) are regularly reviewed
credit-quality rating assigned by ICRA] for enabling the prudent handling of default accounts since
b. For Borrowing from Banks: ICRA AA+ (Outlook Stable) there is need for continued vigil on the asset quality as well
c. For Debentures: as resolution of stressed assets. It is an absolute necessity to
ensure that slippages are contained.
• Secured NCD: ICRA AA+ (Outlook Stable) CARE AAA
IND AAA (Outlook Negative) Market Risk & Interest Rate risk:
• Unsecured NCD: ICRA AA+ (Outlook Stable) CARE
AAA IND AAA (Outlook Negative) Market risk can be defined as the risk arising from adverse
movements in market prices. External factors such as inflation,
d. For Commercial paper: ICRA A1 + CARE A1 + IND A1+]
deflation, demand, supply dynamics which are not within the
29
Can Fin Homes Ltd

Company’s control give rise to risks like funding risk, liquidity for making improvements and improving efficiency. Periodic
risk and interest rate risk. branch visits are undertaken by the executives / officials to
ensure that the procedures laid down are systemically followed
Mitigation: to avoid operational risks. Risk based Internal Audits(RBIA) are
conducted across all branches at periodical intervals, apart
Strategic optimization of short term and long term debt is a key
from the quarterly/Half-yearly audit/inspections. Further,
aspect of our borrowing policy along with fixed and floating
inputs from recovery teams, audit reports, customer grievances
rate instruments. Interest rate fluctuations are taken care of by
are periodically collected and analysed to identify failures and
the rate sensitive assets which can be re-priced. Moreover all
detect potential threats in order to undertake timely action to
the loans granted after April 01, 2017 are subject to annual
ward off the recurrence of operational risks.
reset of interest rates.
As preventive vigilance, the company has in place the off-site
Liquidity Risk
transaction Monitoring system(OTMS) to detect early warning
Liquidity risk is the risk of not having sufficient funds to meet the signals on a near to real-time basis apart from the whistle
liabilities. It arises mainly in situations where our borrowings blowing mechanism.
are dependent on the market liquidity conditions and the
Asset Liability Management
company may not get the required funds.
The Company has an Asset Liability Management (ALM)
Mitigation:
policy for increased profitability and effective functioning with
At CFHL, prudential fund mobilization methods are followed prudential limits set for liquidity mismatch and interest rate
by adhering to the asset-liability management tolerance sensitivity, review mechanisms within the set limits by the
level. It is ensured that instead of depending on a single fund National Housing Bank.
provider, borrowings are raised from different lenders like
The ALM Committee of Executives at RO (ALCO)functions as
banks, National Housing Bank and raising of funds from varied
the operational unit for managing the balance sheet and asset
sources like commercial papers, non-convertible debentures
liability mismatches. The ALCO analyzes the cash flows in
etc. This has enabled the Company to get funds at lower rates
different time buckets based on future likely behavior of assets,
and aids liquidity management. The company reviews it fund
liabilities and off-balance sheet items. The ALCO continuously
position on a daily basis and the ALCO meets regularly and
monitors the uses and sources of funds and prevents any
assesses the requirement of funds.
mismatch between the two. All the borrowing decisions and
The company remained largely unaffected by the recent raising funds in the form of NCD’s, CP’s, bank borrowings,
liquidity crisis in NBFC/and HFC sector. refinance and any other mode, is taken at appropriate levels as
per the Board approved policy on borrowings.
Operational Risk
Additionally, the financial risks of the Company are periodically
Operational Risk is the risk of loss arising from failure of reviewed by the Risk Management Committee, Audit
internal process, systems and people or from external events. Committee and the Board of Directors.
The most important type of operational risk involves break
down in internal controls and Corporate Governance. Such Internal Audit
break downs can lead to financial loss through error, fraud or
failure to perform in a timely manner or cause the interest of The Company’s operational efficiency is taken care of by an
the Company to be compromised. effective internal control team.

Mitigation: Various audit reports provided by the Risk Based Internal Audit
(RBIA) inspection officials, NHB and Canara Bank inspectors
The Company has formulated sound principles and guidelines as well as the Internal and external Auditors of branches are
for managing operational risk. It has a well-established placed before the Audit Committee of the Board for review.
internal control system which envisages segregation of duties, The reports of standalone ‘Application audit of IT systems’ by
clear management reporting lines and adequate operating the IT auditors and special audit for evaluating ‘efficiency of
procedures. The efficacy of the same is periodically reviewed existing internal control systems’ are being reviewed by the

30
 Statutory Reports | Annual Report 2018-19

Audit Committee. In addition to that, after every quarter, the 2. Business Budget for 2019-20:
Committee reviews the operation and performance of the audit
department. a. Loan book size of H23,000 Crore vs H18,381 Crore at
Mar’19 (+25%)
The Risk Profile of the Company, KYC/AML compliances, legal
compliance report, ALM at quarterly intervals and compliance 3. Branch Expansion Plan for 2019-20:
of fair practice code, customer complaints at half yearly
a. 20 New Branches in Tier II/III Growth Centres during
intervals as per the regulatory guidelines are scrutinised and
the first phase & Rationalization of existing branches
reviewed by the Board of Directors. The critical analysis of
in Metros
the policies of the Company is done by the Risk Management
Committee prior to review and approval of the Board. b. Total Network (Branch/AHLC & SOs) – crossing 200
mark by Mar’20 (189 as on 31.03.19)
Asset Quality
c. Focus on Affordable Housing Loans and Non-Housing
The Company has a robust recovery mechanism to contain loans
NPAs, supported by legislations such as SARFAESI Act. Special
d. Salaried & Professional class would continue to be our
recovery campaigns and setting up of special recovery hubs
niche segments
at metros, manned by dedicated staff exclusively handling
recovery of SMAs/NPAs has helped the Company in curtailing e. Raising of fresh equity up to H1000 Crore through
default accounts. Action as per the provision of SARFAESI Act Rights Issue/QIP/Preference Share
has been initiated in 639 accounts involving H95.56 Crore, 307
The Company successfully migrated to Ind-AS and it was
accounts (H38.24 Crore) were upgraded through recovery,
the first audited full year accounts published under the new
properties were auctioned in 46 accounts (H9.27 Crore) and the
Accounting Standard. Major impact on P&L was on account
remaining accounts are in various stages of auction process.
of amortization of processing fee over the entire loan life
In order to get credit-worthy clients and borrowers, risk (H28.78 Crore out of current year fee income amortised over
appraisal is compulsorily done in the initial stages itself prior to subsequent years vis-à-vis H25.27 Crore for FY 18). This apart,
pricing and sanction of loans. current year P&L has the impact of a higher CSR spend of H2.68
Crore compared to previous year and a one-time hit of H8.76
As at March 31, 2019 the Gross NPA stood at H113.51 Crore Crore pertaining to previous period tax expenses. Cumulative
(0.62%) as against H67.49 Crore (0.43%) during the previous negative impact of above three components on FY19 P&L
year. aggregates to H15 Crore which is reflected in the subdued PAT
growth for the year.
Outlook

1. Vision 2022: Loan Book size of H40,000 Crore by the end

of FY2022 growing at a CAGR of 26%

31
Can Fin Homes Ltd

Financial Review and Analysis FY 18-19 H in Crore

Particulars 2018-19 % of Capital 2017-18 % of Capital Growth%
Equity Share Capital 26.63 0.14 26.63 0.17 -
Reserves & Surplus 1755.55 9.51 1460.35 9.48 20.21
Net Worth 1782.18 9.65 1486.98 9.65 19.85
Loan Funds 16694.43 90.35 13921.02 90.35 19.92
Deferred Tax Liability - - - - -
Capital Employed 18476.61 100.00 15408.00 100.00 19.92

Capital employed Net worth

The total employed capital of the Company for FY18-19 stood at The Company’s net worth was H1,750.08 Crore (net of Dividend
H18,476.62 Crore, an increase of 19.92% from the previous year. cost) as on March 31, 2019, which increased by nearly 20%
compared to the previous year’s H1,454.93 Crore as on March
The long term borrowings of the Company as on March 31, 31, 2018.
2019 stood at H12,948.85 Crore compared to H10,680.67 Crore
in FY17-18, an increase of 21.24%. . Reserves and surplus: The reserves and surplus increased
from H1,428.30 Crore as on March 31, 2018 to H1,723.45 Crore
The equity capital was similar to last year, whereas the net as on March 31, 2019 (net of Dividend cost).
worth increased by 19.85% on account of the increase in the
reserves and surplus. Loan Funds

The Company’s CAR (Capital Adequacy Ratio) as on March 31, The total long-term borrowings of the Company as on March 31,
2019 stood at 16.44% (Tier 1 capital of 14.64%), as against 2019 stood at H12,948.85 Crore compared H10,680.67 Crore as
statutory minimum of 12%. This has the impact of Term deposit on March 31, 2018. The gearing ratio is 9.37 at the year end,
amounting to H257 Crore(matured on 10th April’2019) held well within the permitted limit of 16 times of the Company’s
with Canara Bank which has been reduced for computation of net owned funds. However, to improve the leverage ratio
Net owned funds. The CAR without considering the aforesaid further and to support an accelerated growth planned during
term deposit would have been 19.24% (Tier 1 capital of FY20 – FY22, we have put in place a Board approved capital
17.44%). raising plan so as to keep the Company prepared ahead of time.

The Company is well capitalized and internal accruals have

been strong enough to sustain and support growth rates.

Key Ratios

Particulars 2018-19 2017-18 Growth%

Debtors Turnover - - -
Inventory Turnover - - -
Current Ratio - - -
Interest Coverage Ratio 1.40 1.47 -0.07
Debt Equity Ratio 9.37 9.36 -0.01
Operating Profit Margin (%) 27.18 29.78 -2.60
Net Profit Margin (%) 17.14 18.83 -1.69

32
 Statutory Reports | Annual Report 2018-19

H in Crore
Particulars 2018-19 2017-18 Growth%
Revenue 1731.35 1521.98 +13.76
PAT 296.76 286.62 +3.54
EBIT 1638.63 1412.53 +16.01
EBIDTA 1641.60 1415.62 +15.96
EPS (H) 22.29 21.49 +3.68

Analysis of Profit & Loss company goes beyond the set boundaries of compensation,
performance reviews and development to help build a long-
• Gross earnings of the Company during FY18-19 increased lasting and fruitful career. As a part of company’s expansion
by 14% over previous year while expenses were contained strategy, employees are hired at regular intervals. As on 31st
at 15% resulting in a 4% rise in Operating Profit from March 2019, the total employee strength of the company is
H453.18 Crore in FY17-18 to H470.60 Crore in FY18-19. 792, representing increase of 22% over previous year.
• PAT for the year, at H296.76 Crore clocked a Y-o-Y growth
of 3.4% and PBT for the same period grew by 8.9% to IT and Security
H469.50 Crore
The operations of all the branches and the Registered Office are
• Despite rising pressure on margins, amortization of linked through a core-banking platform (Integrated Business
processing fee over the entire loan life under Ind-AS and Suite) under the Application Service Provider (ASP) Model.
its impact on PAT, we registered ROAA of 1.76% (1.90%
under IGAAP) and Return on Equity (ROE) of 18.16% The Company will be shortly implementing the MPLS links for a
(21.38% under IGAAP) in FY18-19 as against 21.30% in higher bandwidth and dedicated uptime.
FY 17-18.
The existing website has been fully revamped and made user
• We could sustain our margins above the 3% mark friendly with increased functionality. Online Application Module
consistently (3.14% for FY19) with a prudent borrowing has also been enabled in its new website along with customer
mix and a healthy asset portfolio. portal to access account statements/ certificates and to do online
money transfer. SMS alerts and missed call facility to provide
• The Company’s cost to income ratio was contained at information on loan balances are also provided by the Company.
16.30% (16.23% in FY17-18) which is one of the best
among peers The Company has a good set of IT professionals hired from
reputed institutions / firms to increase the operation efficiency
• For the 4th successive year, the Company declared 100% in the Information Technology area
dividend representing a payout ratio of 8.97% (excluding
taxes).
Segment wise Reporting

Human Capital Segment has been identified in line with the Accounting
Standard on segment reporting, taking into account the
CFHL considers its human capital as most precious. The organization structure as well as the differential risk and returns
organization ensures that adequate thrust is given to training, of these segments. The Company is exclusively engaged in the
upgrading skills and competencies of the employees. Efforts Housing Finance business and revenues are mainly derived
are made to choose the right candidates with right skills from this activity.
and knowledge for the right position in the organization. The
employee mix of CFHL comprises professionals from various
fields including CA, CMA, CS, legal and IT professionals. The

33
Can Fin Homes Ltd

Related Party Transactions During the year under review, a total of H 6.06 Crores has been
spent towards CSR activities undertaken by the company for
CFHL maintains an arm’s length relationship with related improving the lives of children, men and women in our country.
parties. The Company’s detailed policy on related party
transactions is uploaded in the Company’s website for During the year under review, a total of H 6.06 Crores has been
the information of all the stakeholders. The related party spent towards CSR activities undertaken by the company for
transactions with details are furnished in the Note forming part improving the lives of children, men and women in our country.
of the accounts. All related party transactions are approved
by the Audit Committee or Board or members at a general Cautionary Statement
meeting, as applicable.
The statements made in this report describing the company’s
objectives, estimations, expectations or projections, outlooks
Corporate Social Responsibility
constitute forward looking statements within the meaning
Corporate Social Responsibility at CFHL primarily focuses of applicable securities, laws and regulations. Actual results
around education, health and other social welfare measures. may differ may differ from such expectations, projections,
The company came forward to empower the underprivileged among others whether express or implied. The statements are
children of the society through the powerful medium of based on certain assumptions and future events over which
education by providing desks, benches, chairs, tables, lights, the company has no direct control. The company assumes no
fans, notebooks and other required accessories in schools, responsibility to publicly amend, modify and revise any of the
water purifiers for safe and clean drinking water. The company statements on the basis of any subsequent developments,
also provided medical equipment in hospitals and carried out information or events.
repair work in hospitals with the noble objective of augmenting
healthcare for the needy and deserving.

Essential amenities like solar plants, washing machine and For and behalf of the Board of Directors
RO water plants in old age homes and similar centres run for
destitutes. Mid-day meals were funded through the Akshay Sd/-
Patra schemes in Bangalore and Mangalagiri (Andhra Place : Bengaluru Bharati Rao
Pradesh). Date : May 22, 2019 Chairperson

34
 Statutory Reports | Annual Report 2018-19

Report of Directors

1. FINANCIAL RESULTS

The financial performance for the FY18-19 is summarised here below:

(H in Lakh)
Year ended Year ended
Particulars
March 31, 2019 March 31, 2018
Profit before Tax & Provisions 47,059.70 45,318.40
Less: Impairment on financial instruments 109.22 2,210.00
Profit before Tax 46,950.48 43,108.40
Less: Tax expenses:
(a) Provision for Tax - Current Year 17,203.91 16,075.46
- Previous Year 151.54 (334.38)
(b) Deferred Taxation (78.67) (1,251.91)
Profit after Tax 29,673.69 28,619.23
Add: Other Comprehensive Income
A. Items that will not be reclassified to profit or loss
(i) Actuarial (Gain )/ loss (4.21) (64.53)
(ii) Income tax relating to items that will not be reclassified to profit or loss 1.47 22.33
B. Items that will be reclassified to profit or loss
(i) Income tax relating to items that will be reclassified to profit or loss 0.00 0.00
Other Comprehensive Income (2.74) (42.20)
Total Comprehensive Income for the period 29,676.43 28,661.43
Balance brought forward from previous year 81.71 1,025.54
29,758.14 29,686.97
Appropriations:
Transfer to Special Reserve u/s.36(1)(viii) of the Income Tax Act, 1961 8,739.45 8,300.00
Transfer to General Reserve 5,935.29 12,000.00
Additional Reserve (u/s.29C of the NHB Act) 5,935.29 6,100.00
Proposed Dividend # 2,663.08 2,663.08
Tax on Distributed Profits 547.40 542.18
Balance carried forward to balance sheet 5,937.63 81.71
29,758.14 29,686.97

Note: Figures have been regrouped wherever necessary while preparing the statements as per IND-AS requirements.

#The proposed dividend of H2/- per equity share and tax thereon are not recognised as liability in the annual accounts as at
March 31, 2019 (in compliance with IND AS 10 Events occurring after the Balance sheet date). The same will be considered as
liability on approval of shareholders at the 32nd Annual General Meeting.

2. SHAREHOLDERS’ WEALTH

Year ended Year ended

Particulars
March 31, 2019 March 31, 2018
Earnings Per Share (EPS) (H) 22.29 21.49
Dividend Rate 100% 100%
Market Price of shares (H) 348.85 484.50
Market Capitalisation (H in Crore) 4,645.08 6,451.32

35
Can Fin Homes Ltd

3. BUSINESS PERFORMANCE HIGHLIGHTS During the year under review, your Company could make a
cash recovery of H11.44 Crore (previous year H9.10 Crore)
a) Sanctions in respect of accounts which were Non Performing Assets.

During the year, the Company has sanctioned loans e) Profits

amounting to H5952 Crore as compared to H5760 Crore
in the previous year, recording a growth of 3.3%. Inspite Your Directors are happy to inform that during the year
of continued sluggishness in the real estate market post under review, your Company recorded an Operating
demonetization, teething troubles of RERA and GST Profit of H470.60 Crore (previous year H453.18 Crore),
implementation, your Company managed to show a Profit Before Tax (PBT) of H469.50 Crore (previous year
slender margin of positive growth, in approvals, during H431.08 Crore) and Profit After Tax (PAT) of H296.76 Crore
2018-19. (previous year H286.62 Crore) registering a Year-on-Year
increase of 3.84%, 8.91% & 3.42% respectively. During the
During the year, as in the previous year, thrust was given year Company has made provisions for standard assets
to retail (housing and non-housing) loan segment. 88% amounting to H0.40 Crore (previous year H2.10 Crore),
of fresh loan approvals during the year were for housing provisions for Non-performing assets amounting to H0.69
and 12% were for non-housing loans. The cumulative Crore (previous year H20.00 Crore), provisions for Taxation
loan sanctions since inception of your Company stood at and Deferred Tax Asset amounting to H172.77 Crore
H38074 Crore at the end of the FY19. Average ticket size (previous year H144.89 Crore).
of incremental housing loans and non-housing loans are
H18.12 Lakh and H9.15 Lakh, respectively. f) Reserves

b) Disbursements For reserves during the year please refer statement of

changes in equity for the period ended March 31, 2019
During the year, the Company has disbursed loans forming part of Financial Statements, 2019.
amounting to H5,479 Crore as compared to H5,207 Crore
in the previous year, recording a growth of 5.2%. The g) Dividend
cumulative loan disbursements from inception to the end
Your Company has been paying dividends continuously.
of the FY19 was H33,769 Crore.
Your directors, after giving due consideration to Capital
c) Loans outstanding (Loan Book) Adequacy requirements, deferred tax liability and the
dividend policy, are happy to recommend a dividend of
Your Directors are pleased to report that the total loan H2/- per equity share (100%), for the financial year ended
outstanding as at March 31, 2019 was H18381 Crore, March 31, 2019 for the 4th successive year. The amount
recording a growth of around 16.8% over last year of dividend recommended for payment for the year under
(previous year H15,743 Crore). review is H26.63 Crore. The tax on dividends u/s.115-O of
the Income Tax Act, 1961, at about 20.56% (H5.47 Crore)
During the year, non-housing loan portfolio has increased
[Previous year 20.36% amounting to H5.42 Crore] is being
from H1,654 Crore to H1,939 Crore indicating a growth
paid to the Government by your Company. The Dividend
rate of 17.2%, which constitutes 10.5% of total portfolio
Distribution Policy as required under regulation 43A has
approximately.
been provided as Annexure-3 to this report and is also
d) Non-Performing Asset (NPA) available on the weblink http://www.canfinhomes.com/
pdf/Dividend-Distibution-Policy-120419-pdf
The Gross NPA of your Company as on March 31, 2019
was contained at H113.51 Crore (previous year H67.49
4. EXPANSION OF BRANCH NETWORK
Crore). The net NPA as on date was H79.47 Crore, with
the NPA provision Coverage Ratio at 39% during the year. Your Company has been continuously expanding its network
The gross NPA percentage as on March 31, 2019 stood at of branches. Though our presence in Southern states is
0.62% compared to 0.43% as on March 31, 2018. predominant, new branches and satellite offices have been

36
 Statutory Reports | Annual Report 2018-19

opened in various parts of the country after examining the 6. CUSTOMER-FRIENDLY INITIATIVES
potential on the basis of surveys conducted.
The Company continues to follow transparent, fair and impartial
During FY19, 22 new branches were opened and 1 Satellite practices encompassing all the customers across branches.
Office was upgraded to Affordable Housing Loan Centre Information related to our Company, products, schemes and
(AHLC), for exclusively providing smaller ticket size Loans charges are made available in the website of the Company.
under Credit Linked Subsidy Scheme (CLSS)(Pradhan Mantri As per NHB directions, the Fair Practices Code (FPC) and Most
Awas Yojana), Loans under Urban Housing (LUH) and Loans Important Terms and Conditions (MITC) are regularly updated
under Rural Housing (LRH) schemes. As at the end of FY19, and uploaded in the Company’s website for disseminating the
your Company has an expanded network of 189 outlets spread information to our customers, clients and general public.
across 21 states comprising 154 branches, 21 AHLCs and 14
Satellite Offices. The customer portal has been enabled to access account
statements, certificates and online money transfer.
During the FY20, your Company has plans to open 30 more
branches / AHLCs, (20 in the 1st phase) taking the total number As a customer friendly initiative, under CSR activities, our
of outlets to about 200. The Branches of your Company as well branches are providing tree saplings along with tree pots and
as the Registered Office are operating in spacious premises guards to customers. We have also provided cotton cloth bags
situated in good and accessible localities with the objective to our customers across the country through our branches, in
of providing a pleasant environment and amenities to our order to sensitise people and curb the use of plastic.
customers.
7. FINANCIAL RESOURCES
5. TECHNOLOGY INITIATIVES
a) Refinance from National Housing Bank (NHB) and
All the branches and the Registered Office are linked through borrowings from Banks
a core-banking platform (Integrated Business Suite) under the
During the year, your Company had availed fresh
Application Service Provider (ASP) Model. The Company is in
refinance amounting to H1000 Crore (previous year H90
advanced phase for implementation of MPLS links for a higher
Crore) under the NHB refinance scheme. The cumulative
bandwidth and dedicated uptime.
NHB borrowings as on March 31, 2019 were H1,971.22
In order to improve operational efficiency, your Company has Crore (previous year H2,083.09 Crore), with the overall cost
embarked on technology initiatives like implementation of of borrowing (including the loans under Rural Housing and
C-KYC (Central KYC) solution. The CKYC will act as centralized Urban Housing Schemes) of 7.11% p.a.
repository of KYC records of customers in the financial sector
Borrowings from Bank
with uniform KYC norms and inter-usability of the KYC records
across the sector. Your Company has launched new website During the year, borrowings were diversified through
to make it interactive and more user friendly. Online Grievance a combination of short-term and long-term loans
Redressal portal has been deployed in the new website. considering the asset liability management position to
derive the maximum benefit of competitive interest rates.
Your Company has introduced online Application Module in its
The lenders included State Bank of India, Lakshmi Vilas
website and a customer portal to access account statements/
Bank, Federal Bank, HDFC Bank and Corporation Bank
certificates and online money transfer. Your Company also
apart from Canara Bank, the principal bankers to the
provides SMS alerts and missed call facility to provide
Company. The aggregate bank borrowings (term loans
information on loan balances.
plus overdraft) at the end of the financial year stood at
The Company has set up an in-house team of IT professionals H8,855.86 Crore (previous year H4,635.74 Crore); the
drawn from reputed institutions / firms to enhance IT capabilities. overall borrowings are within regulatory ceiling of 16
times of net owned funds.

37
Can Fin Homes Ltd

The overall cost of borrowings from banks was 8.05% Your Company plans to raise Non- Convertible
p.a. as on March 31, 2019. During the year, the long- Debentures up to a maximum of H6,000 Crore subject
term ‘rating’ of the Company for term loans was ‘[ICRA] to cost benefit and asset liability management
AAA’ (pronounced ICRA triple A) with a negative outlook requirements and with the approval of members at
signifying the highest degree of safety with regard to ensuing Annual General Meeting.
the timely servicing of financial obligations. The rating
has been revised by ICRA as [ICRA] AA+ (Pronounced (ii) Unsecured Non-Convertible Debentures
as ICRA Double A Plus) outlook stable, signifying high
During FY14-15, your Company had issued 8.94%
degree of safety regarding timely servicing of financial
Unsecured Non-Convertible Debentures in the nature
obligations. Such instruments carry very low credit risk.
of Tier II Bonds aggregating H100 Crore for a tenure of
The rationale given for downgrade in credit rating is due to
10 years. These debentures are subordinated to present
the downgrade in credit ratings of the Company’s principal
and future senior indebtedness of the Company and
shareholder (Promoter) viz. Canara Bank.
qualify as Tier II Capital under the National Housing
b) Debentures Bank (NHB) guidelines for assessing Capital Adequacy
Requirements. These Tier II Bonds were rated ‘IND
(i) Secured Non-Convertible Debentures AAA’ (Outlook Negative) long-term rating by India
Rating & Research Pvt Limited (FITCH), CARE AAA’
The Company has not issued any Secured Redeemable (Outlook Stable) by CARE Limited and ‘[ICRA] AAA’
Non-Convertible Non-Cumulative Taxable Debentures (Outlook Negative) by ICRA Ltd. The rating has been
(SRNCD) during the year (previous year H1,400 Crore). revised by ICRA as [ICRA] AA+ (pronounced ICRA
The debentures were secured by way of a floating double double A Plus). Outlook stable, signifying high
charge on the assets i.e., loan receivables specifically degree of safety regarding timely servicing of financial
earmarked for the purpose in favour of the Debenture obligations. Such instruments carry very low credit risk.
Trustees. Most of the investors in these debentures Your Company has serviced the interest on the above
comprised major insurance companies, public sector debentures on the due date.
banks, corporates, PF Trusts & Funds and investors
of repute, indicating their safety perception in your The rationale for downgrade in credit rating given
Company’s fundamentals and prospects. by ICRA is due to the downgrade in credit ratings of
the Company’s principal shareholder (Promoter) viz.
The tenure of the outstanding debentures are range Canara Bank.
bound for two to five years. The interest on these
debentures was serviced regularly. The aggregate c) Commercial Paper
borrowings by way of Secured NCDs as on March 31,
Your Company mobilises funds through commercial paper
2019 was H3,450.15 Crore (previous year H4,898.27
(CP) also. The outstanding at the end of the March 2019
Crore) while the overall cost was 7.92% p.a.
was H2,156.11 Crore (previous year H2,075.62 Crore).
The debentures were rated ‘IND AAA’ (Outlook The effective cost of funds raised through CP was 7.76%
Negative) by India Ratings and Research Pvt. Ltd p.a. The CP issued by your Company was rated at the
(FITCH), CARE AAA’ (Outlook Stable) by CARE Limited maximum [ICRA] A1+ rating by ICRA Ltd., and CARE
and ‘[ICRA] AAA’ (Outlook Negative) by ICRA Limited. A1+’ by CARE Limited indicating, ‘Instruments with this
The rating has been revised by ICRA as [ICRA] AA+ rating are considered to have very strong degree of safety
(pronounced ICRA double A Plus). Outlook stable, regarding timely payment of financial obligations’.
signifying high degree of safety regarding timely
d) Deposits
servicing of financial obligations. Such instruments
carry very low credit risk. These debentures were listed During the year your Company accepted deposits
on the Wholesale Debt Market (WDM) segment of the of H142.56 Crore (Previous year H122.71 Crore). The
National Stock Exchange of India Limited. outstanding balance of deposits (including interest
accrued, but not due) as of March 31, 2019 was H261.09

38
 Statutory Reports | Annual Report 2018-19

Crore (previous year H228.30 Crore). The rate of interest (KYC), Anti-Money Laundering (AML) Guidelines, Asset
on public deposits ranged from 7.00% to 8.10%, while the Liability Management, Capital Adequacy Ratio (CAR)
overall cost (average) of deposits was 7.74% p.a. as on norms, Information Technology frameworks, CERSAI and
March 31, 2019. other related instructions, issued by the National Housing
Bank (NHB) were implemented in letter and spirit with an
As on March 31, 2019, a sum of H19.94 Crore relating to explicit notification on the website of your Company, to the
891 accounts of public deposits (H8.81 Crore as on March extent applicable.
31, 2018 relating to 762 accounts) remained unclaimed/
overdue. Of this amount, a sum of H5.75 Crore relating to During the year the NHB has issued new master circulars/
373 accounts (previous year H1.86 Crore relating to 67 circulars for Housing Finance Companies relating to:
accounts) were claimed and renewed/settled upto May
15, 2019. Your Company has not defaulted in repayment (i) Circular No. NHB(ND)/DRS/REG/MC-07/2018 dated
of deposits or interest during the year. The Company has July 2, 2018 captioned “Master Circular- Housing
complied with the requirements under Chapter V of the Finance Companies – Corporate Governance (NHB)
Companies Act, 2013 to the extent applicable. Directions, 2016”.

During the year, the deposit schemes of your Company (ii) Circular No. NHB(ND)/DRS/Policy Circular
have been rated ‘MAAA’ (pronounced as M Triple A) No.88/2017-18 dated April 16, 2018 and Circular
with a outlook revised to stable from negative, by ICRA No. NHB (ND)/DRS/Policy Circular No.89/2017-18
Ltd., indicating ‘highest credit- quality’ and that the rated dated June 14, 2018 on “Implementation of Indian
deposit programme carried the lowest credit risk. Your Accounting Standards (Ind AS)”.
Company, being a housing finance Company registered
(iii) Circular No. NHB (ND)/DRS/Policy Circular
with National Housing Bank (NHB), has complied with
No.92/2018-19 dated February 05, 2019 on
the Directions/Guidelines issued by the NHB with regard
“Guidelines on Reporting and Monitoring of Frauds
to deposit acceptance and renewal. Your Company
in Housing Finance Companies”.
is exempted from the applicability of the Companies
(Acceptance of Deposits) Rules 2014. Your Company has taken steps to comply with the
requirements of all the applicable provisions of the above
e) Mortgage-backed securities
circulars.
Your Company did not opt for securitisation during the In terms of the Housing Finance Companies - Corporate
year under review. There were no securitised assets Governance (NHB) Directions, 2016, the Company has
outstanding as on March 31, 2019. given the Related Party Transactions Policy as Annexure 4 to
this Report.
8. REGULATORY COMPLIANCES
Your Company has complied with requirements as
a) Compliance with Directions/ Guidelines of National per Para 29 of the Housing Finance Companies (NHB)
Housing Bank (NHB) and other statutes Directions 2010 except for one instance detailed below:

Your Company adhered to the prudential guidelines National Housing Bank (NHB) vide its letter NHB(ND)/DRS/
for non- performing assets (NPAs) as per the National APPEAL-1/17/A-744/2019 dated January 17, 2019 has
Housing Bank (NHB) Directions 2010, as amended from imposed a penalty of H5900 ( inclusive of GST @ 18%) for
time to time. Your Company complied with the guidelines alleged contravention of section 32 of the NHB Act, 1987
and directions issued by NHB on withdrawal of pre- and the Fair Practice Code issued by NHB, for which the
closure charges for all loans. The Guidelines/ norms for Company has sent a reply and remitted the amount under
asset classification of credit/ investments, credit rating, protest.
acceptance of deposits, Fair Practices Code (FPC), Most
During the year, the NHB conducted regular inspection
Important Terms and Conditions (MITC), Customer
of your Company during August & September 2018, for
Complaints Redressal Mechanism, Know Your Customer
the position as at March 2018. The compliance on the

39
Can Fin Homes Ltd

observations were submitted within the prescribed time - DBR. No.BP.92/21.04.048/2017-18 dated November
to the NHB, which were reviewed by the Audit Committee 02, 2017 and as advised by NHB. The Registration has
and the Board. been renewed as required on an annual basis.

Your company has complied with other related statutory (ii) As required under Section 215 of the Insolvency and
Guidelines/Directions as applicable to the Company from Bankruptcy Code, 2016, the Company has registered
time to time. Compliance of all Regulatory guidelines of itself with National e-governance Services Limited
NHB/other statutes are periodically reviewed at Audit (NeSL) authorized by IBBI obtained registration
Committee and Board. No.9160743937431514312 and an agreement is
executed with NeSL on February 28, 2019.
Your Company has complied with Indian Accounting
Standards (Ind AS) as notified under the Companies (Indian (iii) As per the ROC letter No. ROCB/Co. No.8699/MSME
Accounting Standards) Rules, 2015 and Companies Notice/2019/3106 dated January 24, 2019 received by
(Indian Accounting Standard). Amendment Rules, 2016 as the Company and MSME Notification No.S.O. 5621(E)
applicable read with Section 133 of the Companies Act, dated November 02, 2018, the Companies registered
2013 and guidelines issued by National Housing Bank. under the Companies Act, with a turnover of more
than H500 Crore shall get themselves registered on
As per NHB letter No.NHB (ND)/DRS/CRCELL/A-3187/2018
the Trade Receivables Discounting System (TReDS)
dated December 11, 2018, the Company was advised to
platform. The Company has got itself registered on
get registered with National Consumer Helpline (NCH)
TReDS Platform through Receivables Exchange of
as convergence partners through INGRAM software. The
India Limited (RXIL) vide registration No.CA0000876.
Company has completed the registration process.
(iv) As per RBI/2015-16/96 Master Circular No.15/2015-
As per National Housing Bank Circular “NHB/ND/DR5/
16 on Foreign Investment in India and as per
Policy Circular No.90/2017-18” dated June 15, 2018, IT
RBI/2017-18/194 A.P (DIR Series) Circular No.30
Strategy Committee has been constituted with Shri G
dated June 07, 2018 on Foreign Investment in India,
Naganathan, Independent Director as the Chairperson Dy.
all types of Companies which have foreign investment
Managing Director, General Manager and Head of IT Dept.
are required to report through FIRMS - Reporting in
(AGM-IT) [as members of the Committee]. An expert from
Single Master Form. For the purpose the Company
outside will be invited, if need be.
has completed the registration process for Entity User
The National Housing Bank (NHB), vide its Policy Circular on January 21, 2019 and was issued login credentials.
NHB(ND)/DRS/Policy Circular No.92/2018-19 dated The registration as Business User is in progress.
February 05, 2019 issued Guidelines on reporting and
monitoring of Frauds in Housing Finance Companies. Your (v) The Company has complied with all the applicable
Company has taken steps to comply with the requirements Regulations of SEBI (LODR) Regulations as amended
of the applicable provisions of the above Guidelines. from time to time and circulars, notifications etc.
issued by SEBI.
b) IRDA Compliance

The Company is registered with IRDAI for carrying on the

9. COMPLIANCE UNDER THE COMPANIES ACT, 2013
Insurance Agency Business for life and has complied with Your Company has complied with the requirements of the
the applicable requirments under Insurance Regulatory applicable provisions of the Companies Act, 2013 and related
and Development Act, 1999 and IRDAI (Registration of Rules during the FY 18-19. In accordance with Sec 134 (3) (a)
Corporate Agent) Regulations 2015, as amended from of the said Act, amended provision, the provisional Annual
time to time. Return in the prescribed format has been made available on
the website of the Company at https://www.canfinhomes.
c) Other Compliances
com/pdf/Events/32-AGM/provisionalMGT-7F/2018-19.pdf
(i) The Company, on April 04, 2018, had obtained the The extract of Annual Return (MGT-9) is placed as Annexure
Legal Entity Identifier No.335800EJ9Y3XDP5ZDH81 8. For more details regarding Compliances, please refer the
as required under the RBI Circular -No.RBI/2017-18/82 Secretarial Audit Report (Annexure 2).

40
 Statutory Reports | Annual Report 2018-19

10. CAPITAL ADEQUACY 15. HUMAN RESOURCES DEVELOPMENT

The Capital Adequacy Ratio (CAR) of your Company as at The total number of employees of the Company was 792 (592
March 31, 2019 was 16.44% (previous year 19.56%). as regular and 200 on contract) as on March 31, 2019 as against
against the Regulatory benchmark of 12% prescribed by the 648 (594 regular and 54 on contract) as at the end of the
National Housing Bank (NHB). [This has the impact of Term previous year.
deposit amounting to H25,700.42 Lakh (matured on April 10,
To upgrade knowledge/skill of the employees, select employees
2019) held with Canara Bank which has been reduced for
were deputed for training programmes/ seminars organised
computation of Net owned funds. The Capital to Risk Assets
by the National Housing Bank and other reputed institutions.
Ratio (CRAR) without considering the aforesaid term deposit
During the year, training in credit, information technology,
would have been 19.24% (Tier I Capital of 17.44%).]
human relations customer service, Grievance redressal, finance,
taxation, marketing, fraud prevention and other topics of
11. DEPRECIATION importance were imparted to employees and executives. Your
Company has put in place a series of HR measures including
Depreciation was calculated on the Written Down Value
promotions and appropriate reward schemes. Industrial relations
Method based on useful life, in the manner prescribed in
in your Company continued to be cordial during the year.
Schedule II to the Companies Act, 2013.
Particulars of Employees:
12. DEFERRED TAX ASSET (DTA) During FY18-19, your Company had not employed anyone
with a remuneration of H102 Lakh or more per annum nor
During the year, Deferred Tax Asset (net) of H0.77 Crore
had employed for a part of the year with a remuneration of
(previous year H12.30 Crore) was considered to the Statement
H8.5 Lakh or more. The ratio of remuneration of each Director
of Profit & Loss, on account of various components of asset &
to the median of employees remuneration and such other
liabilities. The DTA outstanding at the end of the March 2019
details as required under Sec 197(12) of the Companies Act,
was H24.00 Crore (previous year H23.24 Crore).
2013 read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules 2014, and 2016
13. RECOVERY ACTION UNDER SECURITISATION are furnished below:
& RECONSTRUCTION OF FINANCIAL ASSETS
AND ENFORCEMENT OF SECURITY INTEREST (i) The ratio of the remuneration of Managing Director to
ACT, 2002 (SARFAESI ACT) the median remuneration of the employees (regular
employees) of the Company for the FY18-19 was 3.29: 1
During the year, your Company initiated action against (Non-executive directors and Independent Directors are
367 defaulting borrowers under the Securitisation and eligible for sitting fee only).
Reconstruction of Financial Assets and Enforcement of
Security Interest (“SARFAESI“) Act, 2002 and recovered (ii) The percentage increase in remuneration in the financial
H36.69 Crore (previous year H15.50 Crore) from borrowers of year under the head Managing Director was 7.33%, (the
Non-Performing accounts. Of this H9.27 Crore (previous year remuneration of Managing Director is as per the Service
H6.69 Crore) was recovered by way of sale of assets under Regulations of Canara Bank in terms of the resolution
SARFAESI. This apart H2.59 Crore was recovered in Written off passed by the members at the General Meeting for
accounts (Previous year H1.30 Crore). appointment in the Company).

The General Manager, Chief Financial Officer and the

14. LISTING OF SECURITIES Company Secretary are employees of the Company and
the percentage increase in their remuneration was 7.53%,
The equity shares of the Company are continued to be listed
9.62% and 1.58 % respectively.
on the BSE Limited (BSE), Mumbai, and the National Stock
Exchange of India Ltd. (NSE), Mumbai. The listing fee payable (iii) The percentage increase in the median remuneration of
to these Stock Exchanges were paid before the due dates. The employees in the financial year is 9.32%.
non-convertable debentures issued on private placement are
listed on National Stock Exchange of India Ltd.

41
Can Fin Homes Ltd

(iv) Apart from 592 permanent employees on the rolls of the on the website of MCA-IEPF as well as on the Company’s
Company, there were 200 employees on contract as on website. In order to receive prompt payment of dividend, the
March 31, 2019. members/ investors are requested to demat the shares held in
physical mode, register bank account particulars, opt for ECS
(v) Average% increase in remuneration of the employees facility, register nomination and intimate change of address, if
other than managerial personnel as against that of any, to the Company/ Depository Participants promptly.
Managerial remuneration was around 8.36% during the
period under review. a) Unclaimed dividends

The Company affirms that the remuneration is as per the As at March 31, 2019, dividends aggregating to H163.76
remuneration policy of the Company. Lakh (previous year H152.18 Lakh) relating to dividends
declared for the years FY11-12 to FY17-18 (of which
The Company has a Policy on ‘Prevention of Sexual Harassment H30.36 Lakh related to dividend for the year 2018),
of Women at Workplace’ and matters connected therewith or had not been claimed by shareholders. As an investor
incidental thereto covering all the aspects as contained under friendly measure, your Company has sent reminders to
the Sexual Harassment of Women at Workplace (Prohibition, shareholders to lodge their claims and related particulars
Prevention and Redressal) Act, 2013. During FY18-19 no were provided in the annual reports each year as well as
cases of sexual harassment were reported. on the website of your Company. The dividend pertaining
to 2010-11, which remained unclaimed/unpaid amounting
During the year “Equal Opportunity Policy” was drafted as per
to H7.67 Lakh (in respect of 1,966 shareholders), was
Section 21(1) of Rights of the Persons with Disabilities Act,
transferred to IEPF on September 20, 2018, after the
2018 and same was approved by the Board in this meeting
settlement of claims received from members in response
held on January 23, 2019.
to the individual reminder letters sent by your Company.
The Company has laid down a Code of Conduct for Prevention The dividend pertaining to 2011-12 remaining unclaimed
of Insider Trading, in accordance with the requirements under and unpaid, amounting to H10.04 Lakh (in respect of 2,135
the Securities and Exchange Board of India (Prevention of shareholders) as on March 31, 2019, would be transferred
Insider Trading) Regulations, 2015 and Companies Act, 2013, to IEPF during August 2019 after settlement of the claims
with a view to regulate trading in Securities of the Company received up to the date of completion of seven years i.e. on
by its directors, designated persons and employees. The same August 08, 2019.
is made available on the website of the Company. For related
b) Transfer of shares to IEPF Demat account
link, please refer Annexure 9.
Investor Education and Protection Fund Authority
16.
TRANSFER OF UNCLAIMED AND UNPAID (Accounting, Audit, Transfer and refund) Amendment
DIVIDEND/ DEPOSIT AMOUNTS TO THE INVESTOR Rules, 2017 was notified by the Ministry of Corporate
EDUCATION AND PROTECTION FUND (IEPF) Affairs (MCA) on October 13, 2017. As per Rule 6 of
the said Rules, the shares, in respect of which dividend
In terms of section 124 and 125 of the Companies Act, 2013, amounts have not been paid or claimed for 7 consecutive
the amounts (dividend, deposits etc., with interest) that years, are required to be transferred to ‘IEPF demat
remained unclaimed and unpaid for more than 7 years from the Account’ of IEPF Authority. On verification of records of
date they first became due for payment, should be transferred unclaimed dividend amounts from 2005 to 2011, which
to IEPF. As an investor-friendly measure, your Company has have already been transferred to IEPF on lapse of 7 years
been intimating the respective shareholders / depositors / (during 2012 to 2018 respectively), 7 shareholders had not
investors to encash their dividend warrant/renew matured claimed dividend for consecutive 7 years and their shares
deposits or lodge their claim for payment of due, if any, from 4750 Nos. have been transferred to IEPF demat account
time to time and claims made are settled. As per the statutory within the prescribed period and the details are provided
requirements, the details of such amounts are made available on the website of the Company. For more details please

42
 Statutory Reports | Annual Report 2018-19

refer ‘General Information to shareholders’ in this report. (1) Shri Shreekant M Bhandiwad, DGM of Canara Bank was
In terms of the above Rules, three reminder letters were appointed as an additional Director and Whole-time
sent by the Company to all the shareholders who had not Director (designated as Dy. Managing Director) by the
claimed their dividends for a consecutive period of 7 years, Board w.e.f April 28, 2018, and the same was approved at
informing that their shares will be transferred to IEPF the Annual General Meeting held on July 18, 2018.
suspense account on the due date, August 8, 2019, if they
do not place their claim for unclaimed dividend amounts (2) Dr. Yeluri Vijayanand was appointed as an Additional
before the Company. Your Company has provided the Director (Independent) w.e.f. August 29, 2018 for a tenure of
related details on its website (Investors page). 3 years upto the conclusion of the Annual General Meeting
of the Company for the financial year 2020-21.
c) Unclaimed deposits
(3) Shri Shankara Narayanan Subramanian (S Subramanian),
As required under Section 125 of the Companies Act, General Manager of Canara Bank, was appointed as
2013, the unclaimed and unpaid deposits together with an Additional Director (Non-executive Promoter) w.e.f.
interest for the year 2010-11 amounting to H5.19 Lakh October 06, 2018.
(previous year H10.41 Lakh) that remained unclaimed and
unpaid for a period of 7 years were transferred to IEPF (4) Shri Debashish Mukherjee, Executive Director of Canara
during the year under review. Bank was appointed as an Additional Director (Non-
executive Promoter) w.e.f. March 12, 2019.
17. PARTICULARS REGARDING CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN (5) The tenure of Directorship of Shri G Naganathan in the
EXCHANGE EARNINGS AND EXPENDITURE Company will come to an end on the conclusion of the
32nd Annual General meeting of the Company scheduled
Since your Company is a housing finance Company and does to be held on July 17, 2019. Considering the knowledge,
not own any manufacturing facility, the requirement relating to expertise, role and contributions of Shri G Naganathan,
providing the particulars relating to conservation of energy and Independent Director, during the journey of growth of the
technology absorption as per Sec 134 (3) (m) of the Companies Company over the last 3 years, Nomination Remuneration
Act, 2013 read with Rule 8 of the Companies (Accounts) Rules & HR Committee has proposed for his re-appointment for a
2014, are not applicable. further period of three years i.e., upto the conclusion of the
Your Directors are pleased to inform that Solar Power systems Annual General Meeting of the Company for the financial
and power saving lamps have been installed in 16 branches year 2022, in terms of Section 149(10) of the Companies
so far as a measure towards conservation of energy. Your Act, 2013.
Company has installed Solar-UPS in some of its branches.
(6) The members had approved the appointment of Shri S K
As a part of Save Green efforts and leverage of technology, a Hota as Managing Director of the Company at the 29th
lot of paper work at branches and the Registered Office has AGM held on June 29, 2016 with effect from May 05, 2016
been reduced (also refer para 5). for a tenure of 3 years and subject to further extension
in the period of service, if any, by Canara Bank. In this
During the year, your Company did not earn any income or regard, the Bank has permitted extension of the term of
incur any expenditure in foreign currency/exchange other than deputation of Shri S K Hota, General Manager of the Bank,
payment of Dividend 2018 to NRIs on repatriation basis to an for a further period of 6 months i.e., till October 10, 2019,
extent of H26.34 Lakh through authorised dealers. as a special case. Hence, the Board has recommended
for his re-appointment/extension of tenure as Managing
Director for a further period upto October 05, 2019 to the
18. DIRECTORS & KEY MANAGERIAL PERSONNEL
members and for ratification of actions, since May 19,
APPOINTMENTS / RE- APPOINTMENTS
2019.
The Board of Directors made the following appointments/
The directors had filed their consent(s) and declarations
re-appointments based on the recommendations of the
that they are not disqualified to become directors in terms
Nomination, Remuneration & HR Committee:
of the provisions of Companies Act, 2013 and related

43
Can Fin Homes Ltd

Rules. The directors have intimated to the Company that in the Report of Directors on Corporate Governance. Your
they are not holding any shares or taken any loan(s) from Directors recommend the re-appointment of Shri. Shreekant
the Company. The agenda relating to appointments / re- M Bhandiwad, as a Director, without affecting his tenure
appointments of Directors are provided in the Notice of the and terms and conditions of appointment as Whole-time
32nd Annual General Meeting of the Company seeking Director in terms of Article 28 of the Articles of Association of
approval from the members. The particulars relating to the the Company. The agenda relating to re-appointment of Shri
Directors and all other relevant information are provided in Shreekant M Bhandiwad, Dy. Managing Director forms part of
the explanatory statement forming part of the said Notice the notice convening the ensuing Annual General Meeting and
for the information of members. all other relevant information as per SEBI Regulations are also
provided in the explanatory statement.
(7) Smt. Bharati Rao, Director (Non-Executive Independent) was
elected as the chairperson of the Board w.e.f. July 19, 2018.
19. MEETINGS OF THE BOARD
(8) Smt. Shamila M, General Manager of the Company was
designated as Key Managerial Personnel (KMP) of the During the Financial year 2018-19, ten meetings of the Board
Company w.e.f. April 28, 2018. of Directors were held and the related details, including that
of various committees constituted by the Board, are made
Resignation/Vacation of Office available in the Report of Directors on Corporate Governance
forming part of the annual report placed before the members.
1. The tenure of the Office of Shri K N Prithviraj, the Non-
Executive Independent Director and Chairperson of Your Company has complied with all the requirements as applicable
the Board, and that of Shri T V Rao, the Non-Executive under Companies Act, 2013 and related rules, SEBI (Listing
Independent Director of the Company were completed Obligations and Disclosure Requirements) Regulations, 2015
on conclusion of the 31st Annual General Meeting of the and also HFCs Corporate Governance (NHB) Directions, 2016, in
Company held on July 18, 2018. Hence cessed to be the relation to the Board of Directors and the Committees of the Board.
director of the Company.
Committees of the Board:
2. Shri S A Kadur, Director (General Manager, Canara Bank)
has laid down his Office on attainment of superannuation Currently the Board has seven Committees viz. the Audit
w.e.f September 30, 2018. In pursuance of the same, he Committee, the Nomination, Remuneration & HR Committee,
has tendered his resignation as Director (Non-executive the Corporate Social Responsibility Committee, the
Promoter Director) of the Company and hence cessed to Stakeholders Relationship Committee, the Risk Management
be the director of the Company w.e.f October 01, 2018. Committee, the Management Committee and the IT Strategy
Committee. The IT Strategy Committee was constituted during
3. Smt. P V Bharathi, Non-executive Promoter Director FY 19 as per National Housing Bank (NHB) Circular “NHB/ND/
of the Company has resigned from the Board of the DR5/Policy Circular No.90/2017-18” dated June 15, 2018.
Company w.e.f. February 01, 2019, on her elevation and
A detailed note on the composition of the Board and its
appointment as the Managing Director & Chief Executive
Committees and other related particulars are provided in the
Officer of Corporation Bank.
Report of Directors on Corporate Governance forming part of
Retirement by rotation: this Annual Report.

In terms of Section 152 and all other applicable provisions of

20. DIRECTORS’ RESPONSIBILITY STATEMENT
the Companies Act, 2013, and the Articles of Association of
the Company, Shri. Shreekant M Bhandiwad, Dy. Managing In accordance with the provisions of Section 134(3)(c) read
Director (Whole-time Director), retires by rotation at the with Section 134(5) of the Companies Act, 2013, and based
ensuing Annual General Meeting and being eligible, offers on the information provided by the Management, the Board of
himself for re-appointment. The particulars relating to Shri. Directors report that:
Shreekant M Bhandiwad, Dy. Managing Director are provided

44
 Statutory Reports | Annual Report 2018-19

(a) in the preparation of the annual accounts for the year ended 21.
NOMINATION REMUNERATION AND HR
on March 31, 2019, the applicable accounting standards COMMITTEE (NRC) POLICY
had been followed along with proper explanation relating
to material departures, if any; Your Company has constituted a Nomination Remuneration
and HR Committee (NRC) of the Board in terms of Section
(b) the directors had selected such accounting policies and
178 of the Act, Regulation 19 of the SEBI (Listing Obligations
applied them consistently and made judgements and
& Disclosure Requirements) Regulations, 2015 and Para
estimates that are reasonable and prudent so as to give
3(II) of NHB Corporate Governance (National Housing
a true and fair view of the state of affairs of the Company
Bank) Directions, 2016. This Committee identifies persons
for the financial year ended on March 31, 2019 and of the
who are qualified to become Directors of the Company. The
profit and loss of the Company for that period;
appointment, renewal, reappointment, re-categorisation and/
(c) the directors had taken proper and sufficient care for or removal of the Directors so identified, including extension or
the maintenance of adequate accounting records in continuation of the term of appointment, will be recommended
accordance with the provisions of the Companies Act, by the NRC to the Board. This Committee has also laid down
2013 for safeguarding the assets of the Company and for the criteria to identify persons who may be appointed to the
preventing and detecting fraud and other irregularities; senior management of the Company. The NRC has formulated
the criteria for determining qualifications, positive attributes
(d) the directors had prepared the annual accounts on a going and independence of a Director, carrying out evaluation of
concern basis; every Director’s performance, performance of the Board and
that of the Committees. The NRC Policy of the Company
(e) this being a listed Company, the directors had laid down
covering all the above aspects is made available on the official
internal financial controls to be followed by the Company
website of the Company at https://www.canfinhomes.com/
and that such internal financial controls are adequate and
pdf/Nomination-Remuneration-and-HR-Policy-120419.pdf, in
were operating effectively and
terms of Section 134(3) of the Companies Act, 2013. For web
(f) the directors had devised proper systems to ensure link please refer Annexure 9. The Board ensures the annual
compliance with the provisions of all applicable laws and evaluation of the performance of the Board, its Committees and
that such systems were adequate and operating effectively. of its individual directors through the meeting of independent
directors, the NRC and evaluation by each of the directors
Declaration by Independent Directors:
independently.
The Independent Directors have given declarations to the
Company in terms of Section 149(7) and 149(8) of the 22. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Companies Act, 2013 and Regulation 25(8) of SEBI (LODR) POLICY
Regulations, 2015 that they meet the criteria of independence
as provided in Section 149(6) of the Companies Act, 2013 and
Your Company constituted a Corporate Social Responsibility
Regulation 16(1)(b) of SEBI (LODR), 2015.
(CSR) Committee of the Board as prescribed under Section 135
Code of Conduct: of the Companies Act 2013 and has put the CSR policy in place.
The Company has focussed in promoting education including
In terms of Regulation 26(3) of the SEBI (LODR) Regulations, special education and employment in enhancing vocation skills
2015, all the members of the Board and Senior Management especially among children. The other areas of focus are women
Personnel have affirmed compliance with the Code of Conduct empowerment by promoting gender equality, setting up old
of Board of Directors and Senior Management for the FY18-19. age homes, livelihood enhancement projects for the elderly &
As required under Schedule V (D) of the said Regulations, a the differently abled, healthcare sector, Conservation of Solar
declaration signed by the Managing Director & Chief Executive energy and Ecological balance. During the year the Company
Officer of the Company stating that the members of the also worked in the environmental sustainability by planting
Board and the Senior Management Personnel have affirmed trees/saplings.
compliance of their respective Codes of Conduct, is an annexure
to Corporate Goverance Report.

45
Can Fin Homes Ltd

As a well thought out strategy, all CSR projects of the Company are executed through our own branches with a view
to inculcate a sense of social responsibility amongst the staff. The total amount/ budget under CSR for the FY 2018-
19 was H10.51 Crore, (including previous year H3.30 Crore), out of which total amount spent under the CSR activities is
H6.06 Crore. The unspent amount of H4.45 Crore has already been sanctioned during the year, however disbursement
will be based on progress in the respective projects. A summary of CSR details as on March 31, 2019 is given below:

Sl No. Activities undertaken No. of Beneficiaries Amount in Rupees

1 Construction/ repair & renovation of Schools/ Hostels 7 1,67,98,700
2 Desks & benches/ Tables/ Almirah/ Green Board/ Chairs etc. 32 88,55,728
3 Drinking water facility/ supply of other articles of necessity etc. 10 9,55,956
4 Nali kali round tables/ chairs/ desk & benches/ drinking water facility etc. 13 52,60,763
5 Electrical & Electronic Items to schools 1 72,100
6 Toilet Facility in schools 1 1,18,200
7 Scholarship 3 5,80,052
8 Equipment to hospitals 7 1,48,67,032
9 Equipment to old age home 4 11,07,251
10 Equipment to school 1 3,35,000
11 Eradicating Hunger 3 71,53,333
12 School Bags/Stationery items etc. 2 2,25,278
13 Solar Lighting System 3 24,88,580
14 Environmental Sustainability 1 11,92,270
15 Tree planting under Environmental protection/sustainability/saplings 2 6,14,240
with tree guards/pots to the customers.
Total 90 6,06,24,483

The Annual Report on CSR activities including brief contents are provided as Annexure 5 to this report.

23. RISK MANAGEMENT POLICY streamlined standard operating procedures for all areas of
its business/ operations/ functions, strengthened the Offsite
Your Company has constituted a Risk Management Committee Transaction Monitoring System (OTMS) to track transactions/
with three directors and a senior executive of the Company. early-warning signals across all branches by introducing
In terms of Section 134(3)(n) of the Act, your directors wish to innovative monitoring tools.
state that your Company has adhered to the Risk Management
Policy. The above policy was reviewed during the year. For The National Housing Bank conducts inspection of your
weblink please refer Annexure 9. Company on an annual basis. During the year, the NHB
conducted regular inspection of your Company in August/
September 2018 for the position as at March 31, 2018. The
24. AUDIT AND INTERNAL CONTROL
compliance on the observations were submitted within the
Your Company strengthened existing internal control systems prescribed time to the NHB, which were reviewed by the Audit
for loan reviews at periodical intervals and introduced Committee and the Board.
measures for minimising operational risks commensurate
Your Company has also put in place a well- defined policy on
with the nature of its business and size of operations. Further,
Risk Based Internal Audit (RBIA) and as per the said policy, all
your Company has reviewed delegation of authorities and
the 166 branches due for audit, were audited in the FY18-19.

46
 Statutory Reports | Annual Report 2018-19

Apart from the RBIA, considering the volume of business, Loans, Guarantees or Investments:
branches are also subjected to quarterly/ half yearly internal
audit by empanelled audit firms. The Audit Committee There are no particulars of loans, guarantees or investments
reviewed the audit reports/remarks/ observations and replies/ made during the year in terms of Section 186(1) and 186(2)
compliances including the compliance of KYC norms. of the Act requiring disclosure to be made in the report of
Directors as required under Section 134(3)(g) of the Act. In
Management Audit by Canara Bank was conducted during terms of Section 186(11)(a) the requirement relating to the
January, 2019 for the period, January 2017 to December 2018. disclosure is not applicable to a loan made, guarantee given or
security provided by a housing finance Company.
25.
SECRETARIAL AUDITOR & SECRETARIAL Related Party Transactions:
AUDIT REPORT
The particulars of contracts or arrangements with the ‘Related
As required under section 204 of the Companies Act, 2013 Parties’ referred to in sub-section (1) of Section 188 of the Act
and Rules thereof, the Board appointed M/s Kedarnath & are furnished in Note No.42 of the Notes forming part of the
Associates, Practising Company Secretaries, for conducting financial statements for FY18-19, forming a part of the Annual
the ‘Secretarial Audit’ of the Company and for submission of Report. The particulars of Related Party Transactions as
the Annual Compliance Report for the financial year 2018-19. required u/s sec 134(3)(h) in the prescribed format is attached
to this Report as Annexure 7.
The Secretarial Audit for FY18-19 was conducted as required
u/s.204 of the Companies Act 2013, Regulation 24A of
SEBI(LODR) Regulation 2015 and SEBI Circular No. CIR/CFD/ 26. STATUTORY AUDITORS
CMD1/27/2019 dated February 08, 2019, by S. Kedarnath,
FCS, Practising Company Secretary and his team. In terms Pursuant to the provisions of Section 139, 142 and all other
of Section 204(3) of the Act, your Directors inform that there applicable provisions of the Companies Act, 2013 and rules
is a remark in the report i.e. “NHB vide its letter NHB(ND)/ made thereunder, M/s. Varma & Varma, Chartered Accountants
DRS/APPEAL-1/17/A-744/2019 dated January 17, 2019 has (Firm Reg.No.004532S) were appointed by the members as
imposed a penalty of H 5,900 (inclusive of GST@18%) for the Statutory Auditors of the Company to hold office from
alleged contravention of section 32 of the NHB Act, 1987 and the conclusion of this 30th Annual General Meeting until the
the Fair Practice Code issued by NHB, for which the Company conclusion of the 35th Annual General Meeting, subject to
has sent a reply and remitted the amount under protest”. Other ratification by members every year, as applicable, at such
than above the report does not contain any qualification, remuneration and out-of-pocket expenses, as may be decided
reservation or adverse remark. The Secretarial Audit Report by the Board of Directors of the Company. Pursuant to the
issued by the Practising Company Secretaries is enclosed to provisions of Section 143(8) of the Companies Act, 2013 and
the Report of Directors (Annexure 2) in terms of Section 134(3) rules made thereunder, the Members had authorised the Board
(f) read with Section 204(1) of the Act. of Directors to appoint any person(s) qualified for appointment
as auditor(s) of the Company under Section 141 and all other
In addition to the Secretarial Audit Report, Secretarial applicable provisions of the Companies Act, 2013 as Branch
Compliance report has also been issued by the PCS as per Auditors for audit of any of the Branch of the Company, present
the SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February and future, from the conclusion of this Annual General Meeting
02, 2019, and the said report has been submitted to the Stock until the conclusion of the 35th Annual General Meeting,
Exchanges. subject to ratification by members every year, as applicable, on
such terms and conditions, including remuneration and out-of
Secretarial Standards pocket expenses, as may be decided by the Board of Directors
of the Company.
The Company complies with the mandatory Secretarial
Standards i.e. SS-1 and SS-2 issued by the Institute of The requirement of placing the matter relating to such
Company Secretaries of India and has referred to Secretarial appointment for ratification by members at every annual
Standards SS-3 and SS-4 for good governance. general meeting has been dispensed with due to omission

47
Can Fin Homes Ltd

of the first proviso to Section 139(1) by the Companies Board Evaluation:

(Amendment) Act, 2017 effective from May 07, 2018 as per
the Notification issued by Ministry of Corporate Affairs, Govt. of In terms of Regulation 17(10) of the SEBI (LODR) Regulations,
India [File No.1/1/2018-CL.I dated May 07, 2018]. 2015 read with the SEBI Circular No. SEBI/HO/CFD/ CMD/
CIR/P/2017/004 dated January 05, 2017, your Company has
In view of the above, M/s Varma & Varma, Chartered Accountants put in place the ‘Board and Director’s Evaluation Policy’ laying
(Firm Reg.No.004532S) appointed by the members at the 30th down a framework for evaluation of the Board, its Committees
Annual General Meeting for a tenure upto the conclusion of the and of the individual directors with defined attributes for
35th Annual General Meeting will continue as the Statutory evaluation. The Board has evaluated the performance of the
Auditors of the Company, at such remuneration and out-of pocket independent directors including their independence criteria
expenses, as may be decided by the Board of Directors of the as specified in the said regulations and their independence
Company. from the management. The directors who were subject to
evaluation did not participate in their own evaluation. The
The Statutory Auditors’ Report for the FY2018-19 does not results of the evaluation exercise will be shared with the Board
contain any qualification, reservation or adverse remark. in subsequent Board Meeting(s).

27. MANAGEMENT DISCUSSION AND ANALYSIS 29. SAVE GREEN EFFORTS & RESPONSIBILITY
REPORT TOWARDS SOCIETY
In terms of Regulation 34(2) of the SEBI (Listing Obligations & In recognition and support to the green initiative taken by
Disclosure Requirements) Regulations, 2015, the Management the Ministry of Corporate Affairs (MCA), Government of
Discussion and Analysis Report forms part of this Annual India, your Company is sending AGM notices, annual reports,
Report. correspondence with the stakeholders etc. to the respective
e-mail IDs of stakeholders. To facilitate paperless banking,
28. CORPORATE GOVERNANCE initiatives taken by your Company include ECS / NACH
facility for repayment of loans, streamlining the systems and
As required under the Companies Act, 2013, Regulation 34 procedures for reporting by the branches and at the Registered
read with Schedule V of the SEBI (LODR) Regulations, 2015 Office through Integrated Business Suite (IBS), networking of
and Housing Finance Companies – Corporate Governance branches with the Registered Office, harnessing solar energy
(National Housing Bank) Directions, 2016, the ‘Report of for lighting and computer operations in its 16 branches and the
Directors on Corporate Governance’ for the year FY18-19 is like. The usage of paper is minimised.
placed in this Annual Report.
As in the previous years, we continue to publish only the
The said Report covers in detail the Corporate Governance statutory disclosures in the print version of the Annual Report.
Philosophy of the Company, Board Diversity, Directors Electronic copies of the Annual Report, Annual General Meeting
appointment and remuneration, declaration by Independent Notices, and such other notices are being sent to all members
Directors, Board evaluation, familiarisation programme, whose e-mail address are registered with the Company/
vigil mechanism etc. The Auditors Certificate on Corporate Depository participants. For members who have not registered
Governance is provided with this report as Annexure 1. their e-mail address and to those who specifically request for
physical copies, the same are sent in the permitted mode.
Business Responsibility Report:
Through our CSR activities in the field of health care, education and
The SEBI (LODR) Regulations, 2015, mandates inclusion of
empowerment of the downtrodden, we have strived to improve
Business Responsibility Report (BRR) in the prescribed format,
the lives of lakhs of our country men, women and children. We
as a part of the Annual Report for top 500 listed entities based
have sanctioned H10.60 Crore for 103 projects and spent H6.06
on the market capitalisation. In compliance with the said
Crore towards the funding of life saving medical equipment
Regulations, the BRR is provided as a part of this Report as
and renovation work in about 8 hospitals, supply of books,
Annexure 6.

48
 Statutory Reports | Annual Report 2018-19

desks, almirahs, fans, lights water purifiers and other necessary 31. ACKNOWLEDGEMENTS
materials as well as repair work in about 68 schools across the
country. Scholarships have been provided to meritorious, poor Your Directors would like to thank Canara Bank, the promoter,
students. The funds were also utilized for improving the lives of for their continuous support.
inmates in many old age homes, rehabilitation centres for the
Your Directors would like to acknowledge the role of all its
physically and intellectually disabled. CFHL also contributed to
stakeholders viz., shareholders, debenture holders, CP holders,
the Akshay Patra Foundation mid-day meal to 6150 children in
depositors, bankers, lenders, borrowers, merchant bankers,
Mangalagiri for 6 months.
insurance partners, debenture trustees and all others for their
Saplings have been provided to our customers in all parts of the continuous support to your Company and the confidence and
country. Cotton bags have also been procured for distribution faith that they have always reposed in your Company.
to our borrowers and public to discourage the use of plastic.
Your Directors acknowledge and appreciate the guidance and
support extended by all the Regulatory authorities including
30. OUTLOOK FOR 2019-20 National Housing Bank (NHB), Insurance Regulatory and
Development Authority of India (IRDAI), Securities Exchange
The slew of measures announced by the Union Government in
Board of India (SEBI), Ministry of Corporate Affairs (MCA),
the Budget to boost housing, particularly PMAY loans, will be
Registrar of Companies, Karnataka, the Stock Exchanges and
a key factor in revival of the real estate market. Your Company
the NSDL and CDSL.
will intensify its lending under the Affordable Housing Loan
Segment. Your Directors thank the Rating Agencies, viz. ICRA, CARE,
India Ratings & Research Ltd., (FITCH), the Registrars & Share
We will continue our market expansion in potential locations
Transfer Agents, Debenture Trustees and Trustees of public
and have plans to open about 30 new branches during the
deposits of your Company, Government(s), local/ statutory
current fiscal. We have also set the wheels in motion for the
authorities, and all others for their whole-hearted support
distribution of general insurance products through corporate
during the year and look forward to their continued support in
agencies to provide insurance products to secure the health
the years ahead.
and assets of our customers.
Your Directors value the professionalism of all the employees
Your Company is targeting a loan book size of H23,000 Crore by
who have proved themselves in a challenging environment
March 2020. Lending to the salaried class will continue to be
and whose efforts have stood the Company in good stead and
our focus. However, with the rising cost of funds, expectations
taken it to present level.
of borrowers for loans at lesser rates, intense competition in the
market, etc., margins are expected to remain under pressure.
For and on behalf of the Board of Directors
Your Company would continue its endeavour for growth with
quality. Your Company will safeguard and maintain the high Sd/-
standards followed till date, despite the innumerable hurdles Place: Bengaluru Bharati Rao
that are inevitable in the discharge of its functions. Date : May 22, 2019 Chairperson

49
Can Fin Homes Ltd

Annexure 1
INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To
The Members of Can Fin Homes Ltd.,

1. We, Varma and Varma, Chartered Accountants, the 5. We conducted our examination of the relevant records
Statutory Auditors of Can Fin Homes Limited (‘the of the company in accordance with the Guidance Note
Company’), have examined the compliance of the on Certification of Corporate Governance issued by the
conditions of Corporate Governance by M/s Can Fin Homes Institute of Chartered Accountants of India (the ICAI), the
Limited for the year ended March 31, 2019 as stipulated in standards on auditing specified under section 143(10) of
Securities and Exchange Board of India (Listing Obligations the Companies Act, 2013, in so far as applicable for the
and Disclosure Requirements) Regulations, 2015 (‘Listing purpose of this certificate and as per the Guidance Note
Regulations’) as referred in Regulation 15(2) of the Listing on Reports or Certificates for Special Purposes issued by
Regulations. the ICAI which requires that we comply with the ethical
requirements of the Code of Ethics issued by the ICAI.
Management’s Responsibility
6. We have complied with the relevant applicable
2. The compliance of conditions of Corporate Governance is requirements of the Standard on Quality Control (SQC) 1,
the responsibility of the Management. This responsibility Quality Control for Firms that Perform Audits and Reviews
includes the design, implementation and maintenance of of Historical Financial Information, and Other Assurance
internal control and procedures to ensure the compliance and Related Services Engagements.
of the conditions of the corporate governance stipulated in
the Listing Regulations. Opinion

Auditor’s Responsibility 7. Based on our examination of relevant records and according

to the explanations given to us and based on our reliance
3. Our responsibility is limited to examining the procedures upon the representations made by the Directors and the
and implementation thereof, adopted by the company Management, we certify that the Company has complied
for ensuring the compliance with the conditions of in all material respects with the conditions of Corporate
the corporate governance. It is neither an audit nor an Governance as stipulated in the above mentioned Listing
expression of opinion on the financial statements of the Regulations during the year ended March 31, 2019.
company.
8. We further state that such compliance is neither an
4. We have examined the books of account and other relevant assurance as to future viability of the Company nor the
records and documents maintained by the company for efficiency or effectiveness with which the Management
the purpose of providing reasonable assurance on the has conducted the affairs of the Company.
compliance with the corporate governance requirements
by the company.

For Varma & Varma

Chartered Accountants
Firm Reg. No. 004532S

Sd/-
R Kesavadas
Partner
Place: Bengaluru Membership No. 23862
Date: May 22, 2019 UDIN: 19023862AAAAAZ7854

50
 Statutory Reports | Annual Report 2018-19

Annexure 2
SECRETARIAL AUDIT REPORT
[Pursuant to section204 (1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
(FOR THE FINANCIAL YEAR ENDED MARCH 31, 2019)

To,
The Members,
CAN FIN HOMES LIMITED,
Bengaluru- 560004

We have conducted the Secretarial Audit of the compliance i. The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to (Substantial Acquisition of Shares and Takeovers)
good corporate practices by CAN FIN HOMES LIMITED (CIN: Regulations, 2015 as amended till date;
L85110KA1987PLC008699) (hereinafter called ‘the Company’)
ii. The Company has complied with the requirements of
having its Registered Office at No 29/1, Sir M N Krishna Rao Road,
The SEBI (Prohibition of Insider Trading) Regulations,
Near Lalbagh West Gate, Basavanagudi, Bengaluru 560004
2015 as to the requirements of providing necessary
Secretarial Audit was conducted in a manner that provided us a
information on the Company’s website and other
reasonable basis for evaluating the corporate conducts/statutory
prescribed disclosures;
compliances and expressing our opinion there on.
iii. There were no occasions needing compliance under
Based on our verification of the Company’s books, papers, minute the provisions of the Securities and Exchange Board of
books, forms and returns filed and other records maintained India (Issue of Capital and Disclosure Requirements)
by the Company and also the information provided by the Regulations, 2015 as amended till date; hence not
Company, its officers, agents and authorized representatives applicable.
during the conduct of Secretarial Audit, we hereby report that in
our opinion, the Company has, during the audit period covering iv. The Company has not issued any securities under
the financial year ended on March 31, 2019 complied with the ESOP/ESPS during the year under the provisions of
statutory provisions listed hereunder and also that the Company the Securities and Exchange Board of India (Shares
has proper Board-processes and compliance-mechanism in Based Employee Benefits) Regulations, 2014;
place and subject to the reporting made hereinafter. v. The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2015 as
We have examined the books, papers, minute books, forms and
amended till date;
returns filed and other records maintained by the Company for
the financial year ended on March 31, 2019, ‘according to the vi. The Securities and Exchange Board of India
provisions of: (Registrars to an Issue and Share Transfer Agents)
Regulations, 2006 as amended till date to the extent
1. The Companies Act, 2013 (the Act) and the rules made applicable.
there under;
vii. The Company has not applied for delisting of Equity
2. The Securities Contract (Regulation) Act, 1956 (SCRA) Shares in any stock exchanges under the provisions of
and the Rules made there under; The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2015 as amended till
3. There were no occasions needing compliance under the date; and hence not applicable.
provisions of the Depositories Act, 1996 and the Regulations
and Bye-laws framed there under; hence not applicable. viii. The Company has not bought back any securities
during the financial year under the provisions of The
4. Foreign Exchange Management Act, 1999 and the rules Securities and Exchange Board of India. (Buyback of
and regulations made there under; Securities) Regulations, 2013 as amended till date;
and hence not applicable
5. The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act, 6. We further report that based on the information received
1992 (‘SEBI Act’) as amended from time to time. and records maintained, in our opinion the Company has,
complied with the provisions of:

51
Can Fin Homes Ltd

1. The National Housing Bank Act, 1987. the composition of the Board of Directors that took
place during the period under review were carried out in
2. The Housing Finance Companies (NHB) Directions,
accordance with the provisions of the Act.
2010 as amended from time to time.

3. Housing Finance Companies issuance of non- Adequate notice is given to all directors to schedule the
convertible Debentures on private placement basis Board Meetings, agenda and detailed notes on agenda
(NHB), Directions 2014. were sent at least seven days in advance, and a system
exists for seeking and obtaining further information and
4. Housing Finance Companies — Auditor’s Report clarifications on the agenda items before the meeting and
(National Housing Bank) Directions, 2016. for meaningful participation at the meeting.
5. Housing Finance Companies — Approval of
Majority decisions are carried through by majority and
Acquisition or Transfer of Control (National Housing
minutes of meetings are self explanatory with respect to
Bank) Directions, 2016.
recording dissenting members’ views, if any.
6. Housing Finance Companies - Corporate Governance
(National Housing Bank), Directions, 2016. Guidelines We further report that the Company has developed
and circulars issued under the National Housing Bank and implemented adequate systems and processes
Act, 1987 from time to time. commensurate with its size and operations to effectively
monitor and ensure compliance with applicable laws,
7. FIMMDA operational Guidelines (RBI) for Commercial rules, regulations and guidelines and also the process and
Papers. procedure in place to assist in minimizing exposure to risk
8. Guidelines on Fair Practices Code for HFCs issued by that threaten the existence of the Company.
NHB.
8. We further report that during financial year under report:
We have also examined compliance with the applicable
a) The NHB vide its letter NHB(ND)/DRS/APPEAL-
clauses of:
1/17/A-744/2019 dated January 17, 2019 imposed a
(i). Secretarial Standards SS-1 and SS-2 issued by The penalty of H 5,900 (inclusive of GST@18%) for alleged
Institute of Companies Secretaries of India. contravention of section 32 of the NHB Act, 1987 and the
Fair Practice Code issued by NHB, for which the Company
(ii) The Listing Agreements entered into by the Company has sent a reply and remitted the amount under protest.
with BSE Limited and National Stock Exchange of
India Limited.
For S Kedarnath & Associates
During the financial year under report, the Company Company Secretaries
has complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above
Sd/-
in the manners stated therein;
S. Kedarnath
7. We further report that: Place: Bengaluru Company Secretary
Date: May 04, 2019 C P No. 4422
The Board of Directors of the Company is constituted with
proper balance of Executive Directors, Non-Executive Note: This report is to be read with our letter of even date which is
Directors and Independent Directors. The changes in annexed as Annexure A and forms an integral part of this report.

52
 Statutory Reports | Annual Report 2018-19

Annexure A

The Members,
CAN FIN HOMES LIMITED,
Bengaluru- 560004

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of Secretarial Records. The verification was done on test basis to ensure that correct facts are reflected in the
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts, and related documents
of the Company including compliances of the laws at the branch offices.

4. Where ever required, the Company has represented about the compliance of laws, rules and regulations and happening of
events etc as applicable from time to time. The compliance under the industry specific laws were examined based on the list
of applicable laws provided by the Company.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
Management Our examination was limited to the verification of procedures on test basis.

6. The secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the Management has conducted the affairs of the Company.

For S Kedarnath & Associates

Company Secretaries

Sd/-
S. Kedarnath
Place: Bengaluru Company Secretary
Date: May 04, 2019 C P No. 4422

53
Can Fin Homes Ltd

Annexure 3
CAN FIN HOMES LTD (CFHL)
DIVIDEND DISTRIBUTION POLICY
[Disclosure as per reg.43A of SEBI(LODR)Regulations, 2015]

1. PREAMBLE AND BACKGROUND

1.1. Dividend is profits earned by the Company and divided 1.7. The Securities and Exchange Board of India (Listing
amongst the shareholders in proportion to the amount of Obligations and Disclosure Requirements) (Second
paid up shares held by them. Simply stated it is a return Amendment) Regulations, 2016 under regulation 43A
on investment made by the shareholders. has specified the formulation of a dividend distribution
policy for the top 500 listed entities based on market
1.2. The term ‘dividend’ has been defined under Section capitalization which shall be disclosed in their Annual
2(35) of the Companies Act, 2013. The term “Dividend” Reports and on their websites. In view of that it is
includes any interim dividend. It is an inclusive and not an recommended on part of Company to formulate the
exhaustive definition. According to the generally accepted Dividend Distribution Policy of the Company hereinafter
definition, “dividend” means the profit of a Company, referred to as “Can Fin Homes Ltd Dividend Distribution
which is not retained in the business and is distributed Policy” (“CFHLDDP”).
among the shareholders in proportion to the amount
paid-up on the shares held by them.
2. OBJECTIVES
1.3. A dividend is not regarded as expenditure; rather, it is
considered a distribution of assets among shareholders. 2.1. To define the policy and procedures of the Company in
A Company can retain its profit for the purpose of relation to the calculation, declaration and settlement of
re- investment in the business operations (known as Dividends and the determination of the form and time
retained earnings), or it can distribute the profit among its periods within which Dividends are paid.
shareholders in the form of dividends.
2.2. To ensure that the Company has sufficient distributable
1.4. Dividends are usually payable for a financial year after the profits and/or general reserves, as determined by a review
final accounts are ready and the amount of distributable of the Company’s audited financial statements, prior to
profits is available. Dividend for a financial year of the any declaration and/or payment of Dividends.
Company (which is called ‘final dividend’) are payable
2.3. To create a transparent and methodological Dividend
only if it is declared by the Company at its Annual General
policy, adherence to which will be required before
Meeting on the recommendation of the Board of directors.
declaring dividends.
Sometimes dividends are also paid by the Board of directors
between two Annual General Meetings without declaring 2.4. The Company will review this Policy annually and make
them at an Annual General Meeting (which is called ‘interim necessary changes if deemed necessary or as and when
dividend’) if so authorized by its Articles of association. there is regulatory changes, new regulations, directions,
guidelines issued by the regulatory/government
1.5. Generally, dividend is paid by a Company to its shareholders
authorities from time to time.
on a particular date (book closure date) either out of profits
or out of reserves / accumulated profits.
3. SCOPE, LAW AND REGULATION OF DIVIDEND
1.6. As Can Fin Homes Limited (hereinafter referred to as
“Company”) is a Company incorporated and registered in 3.1. The declaration and payment of dividend are governed
India under the Companies Act, 1956 and is listed with by various provisions of the Companies Act, 2013 and
BSE Limited (formerly Bombay Stock Exchange Limited) most importantly chapter - VIII from section 123 to 127
and National Stock Exchange Limited, is registered with deals with “Declaration and payment of dividend”; The
National Housing Bank as a Housing Finance Company Companies (Declaration and Payment of Dividend) Rules,
and hence is governed by the rules and regulations 2014 ; Investor Education and Protection Fund (Awareness
related to declaration and payment of dividend. and Protection of Investors) Rules, 2001; SEBI (Listing

54
 Statutory Reports | Annual Report 2018-19

Obligations and Disclosure Requirements) Regulations, d) Cost of raising funds from alternative sources
2015; section 27 of Security Contract Regulation Act,
e) Applicable taxes (including dividend distribution tax)
1956; Income Tax Act, 1961; Secretarial Standards on
Dividend (SS-3); NHB Guidelines/ Circulars/ Notifications, f) Money market conditions
FEMA 1999, SEBI Guidelines/Circulars etc. as amended
g) Macro-economic situations, etc.
from time to time and to the extent applicable.

3.2. The Company will adhere to the provisions of Law as per 4. GENERAL TERMS
Clause 3.1 above, as amended from time to time and to
4.1. Basis of recommending dividend: The dividends are
the extent applicable.
declared at the Annual General Meeting of the Company,
3.3. The policy set out herein relate to Equity Shares only and based on recommendations of the Board of Directors
not applicable to preference shares. However, Board (Board).
reserves the right to modify this policy to accommodate
4.2. Free Reserves: The word ”Free reserves” has been defined
the preference shares or make a separate policy for
by Section 2(43) of Companies Act, 2013 to mean such
preference shares in accordance with applicable
reserves which, as per the latest audited balance sheet
provisions of Law as per 3.1 above as and when it deems
of a Company, are available for distribution as dividend.
fit and necessary.
However the following shall not be treated as free reserves:
3.4. The policy set out herein generally relates to final Dividend, any amount representing unrealized gains, notional gains
certain principles also apply to Interim Dividend declared or revaluation of assets, whether shown as a reserve or
by the Board of Directors, as stated hereinafter. otherwise, or any change in carrying amount of an asset
or of a liability recognized in equity, including surplus in
3.5. Trading Window: In terms of regulation 2(1) (n) of SEBI profit and loss account on measurement of the asset or the
(Prohibition of Insider Trading), 2015, declaration of liability at fair value, shall not be treated as free reserves.
dividends (interim or final) shall be treated as “Unpublished
Price Sensitive Information” hence Company shall comply Clause 2(1)(l) of the NHB Directions 2010 defines “Free
with norms / compliances of trading window read with reserves” to include the balance in the share premium
Company’s insider Trading Policy viz. Code of Conduct account, capital and debenture redemption reserves and
for Regulating, Monitoring and Reporting of Trading by any other reserve shown or published in the balance
Insiders pursuant to regulation 9 of SEBI (Prohibition of sheet of the Company and created through an allocation
Insider Trading), 2015. of profits, not being (1) a reserve created for repayment of
any future liability or for depreciation in assets or for bad
3.6. Secretarial Standards: The Company will comply with debt or (2) a reserve created by revaluation of the assets
Secretarial Standards as and when the secretarial of the Company;
standards are notified enforced by the Ministry of
Corporate Affairs. 4.3. Bonus Shares: The Bonus shares shall not be issued in
lieu of dividend in terms of section 63(3) of the Companies
3.7. Right / Title to dividends: It shall be governed by section Act, 2013.
27 of Security Contract Regulation Act, 1956 and other
applicable laws, rules and regulation as amended and 4.4. Payment of dividend proportionately: In terms of section
enforced from time to time. 51 companies are permitted to pay dividends in proportion to
the amount paid-up on each share when all shares are not
3.8. The management will discuss and recommend to uniformly paid up, i.e. pro rata (in proportion or proportionately,
the Board of Directors on dividend considering the according to a certain rate). The Board of Directors of a
circumstances or factors but not limited to the following: Company may decide to pay dividends on pro-rata basis if
all the equity shares of the Company are not equally paid- up.
a) Future expansion plans The permission given by this section is, however, conditional
b) Profit earned during the current financial year upon the Company’s articles of association expressly
authorizing the Company in this regard.
c) Overall financial conditions

55
Can Fin Homes Ltd

4.5. Interim dividend: The Board of Directors of a Company and the portion of profits that is given to its shareholders. It
may declare interim dividend during any financial year is calculated by dividing the proposed dividend (excluding
out of the surplus in the profit and loss account and taxes on dividend) by the Profit after tax and depreciation.
out of profits of the financial year in which such interim
dividend is sought to be declared. In case the Company
5. PARAMETERS FOR DECLARATION OF
has incurred loss during the current financial year up
DIVIDEND
to the end of the quarter immediately preceding the
date of declaration of interim dividend, such interim 5.1. Depreciation must be provided: No dividend shall be
dividend shall not be declared at a rate higher than the declared or paid by the Company for any financial year
average dividends declared by the Company during the unless it is paid
immediately preceding three financial years in terms of
section 123 (3) of Companies Act, 2013. • Out of profits for that year arrived at after providing
depreciation in accordance with provisions of
4.6. Final Dividend: It is declared by members at an Annual Section123(2) of the Companies Act or
General Meeting as “Ordinary Business” in terms of
section 102(2)(ii) of the Companies Act, 2013 only if • Out of accumulated profits of the Company for any
recommended by the Board of Directors and at a rate previous financial year or years arrived at after
not more than what is recommended by the directors in providing depreciation and remaining undistributed or
accordance with the articles of association of a Company.
• Out of both above or
4.7. Powers to SEBI: As our Company is listed, Section 24
• Out of money provided by the central government
of the Companies Act, 2013 confers on SEBI, the power
or a state government for payment of dividend in
of administration of the provisions pertaining to non-
pursuance of a guarantee given by that government
payment of dividend. In any other case, the powers
remain vested in Central Government. 5.2. Depreciation as per schedule-II: Depreciation, as
required under Section 123(1) of the Companies Act
4.8. No buy back if default in payment of dividend: In
has to be provided in accordance with the provisions of
accordance with Section 70, a Company cannot buy its
Schedule II to the Act.
own shares if apart from other things provided in the
section; it makes default in payment of dividend to any 5.3. Transfer to Reserves: A Company may, before declaration
shareholder. of any dividend transfer such percentage of its profits
for that financial year as it may consider appropriate to
4.9. Debenture Redemption Reserve: Where debentures
reserves in terms of the first proviso of Section 123(1)
are issued by a Company, the Company shall create a
(b). The Board of directors is given freedom to decide
debenture redemption reserve account out of the profits
the percentage of transfer of profits to reserves which
of the Company available for payment of dividend and the
includes Special Reserve, Additional Reserve, General
amount credited to such account shall not be utilized by
Reserve etc. before declaring a dividend.
the Company except for the redemption of debentures in
terms of section 71 (4) of the Companies Act, 2013. Since 5.4. Dividend from Free Reserves: In terms of third proviso of
the Company is a Housing Finance Company registered Section 123(1)(b) of the Companies Act, 2013 no dividend
with National Housing Bank, there is no requirement shall be declared or paid by a Company from its reserves
of creation of DRR for issues under private placement. other than free reserves.
However, the DRR shall be created for public issue of
Debentures. 5.5. Amount of Dividend: The management upon compliance
of the above clause no. 5.1 to 5.4 may recommend to the
4.10. Dividend Payout Ratio: The dividend payout ratio Board of Directors the dividend at a rate (inclusive of the
measures the percentage of Net Profit (PAT) that is dividend distribution tax or any other applicable taxes on
distributed to shareholders in the form of dividends during dividend) of any of the following:
the year. In other words, this ratio shows the portion of
profits, the Company decides to keep to fund operations

56
 Statutory Reports | Annual Report 2018-19

a) Maximum of Dividend payout ratio of 20% (excluding terms of Regulations 29(1) and (2) of SEBI LODR, prior to
taxes). the meeting of the Board at which the recommendation of
final dividend is to be considered. In terms of Regulation
b) Minimum of 20% of the paid up Equity share capital. 30, the outcome of the meeting shall be intimated, online,
immediately to the above Stock Exchanges within 30
While recommending such dividend the management
minutes of the closure of the board meeting.
will also take into account dividends declared during the
preceding 3 years. In terms of Regulation 43(1) of the SEBI LODR, the
Company shall declare and disclose the dividend on per
Not with-standing the above, the Board reserves the right
share basis only.
not to declare dividend or decide any rate of dividend, for
a particular year owing to certain regulatory restrictions In terms of Regulation 42(3) of the SEBI LODR, the
if any, during the year, capital conservation prudence, or Company shall recommend or declare all dividend at
other exigencies which shall be stated by the Board. least five working days (excluding the date of intimation
and the record date) before the record date fixed for the
5.6. Retained Earnings Utilization: The retained earnings i.e.,
purpose.
profit after tax, transfer to the free reserves and dividend
(inclusive of tax), will be utilized by the Company for 6.4. Dividend to be paid to Registered Shareholders: In
future expansion plans, deployment for advances, Capital terms of Section 123(5) of the Companies Act, no dividend
adequacy etc. shall be paid by a Company in respect of any share
therein except to the registered shareholder of such share
5.7. Classes of Shares: the Company has presently only
or to his order or to his banker and shall not be payable
Equity Shares and the Dividend distribution policy is
except in cash. Provided that nothing in this sub-section
specifically formed for this class of shares.
shall be deemed to prohibit the capitalization of profits
or reserves of a Company for the purpose of issuing fully
6. PAYMENT OF DIVIDEND paid-up bonus shares or paying up any amount for the
time being unpaid on any shares held by the members of
6.1. Time limit for deposit of dividend: The amount of the
the Company.
dividend, including interim dividend, must be deposited in a
scheduled bank in a separate account within five (5) days 6.5. Mode of payment of dividend: Any dividend payable in
from the date of declaration of such dividend. Dividend cash shall be paid by using any of the electronic mode of
once declared by the shareholders becomes a debt and payment facility approved by the Reserve Bank of India.
payable unlike in the case of interim dividend. But the Provided that where it is not possible to use electronic
restriction to deposit within five (5) days of declaration even mode of payment, ‘payable-at-par’ warrants or cheques
the interim also ensures that the Board cannot go back on may be issued and the dividend amount exceeds H1500/,
the commitment made by its declaration in terms of section the ‘payable-at-par’ warrants or cheques shall be sent by
123(4). speed post.

6.2. Time limit for payment of dividend: The dividend has For the above purpose, the Company, through its
to be paid within 30 days from the date of declaration or Registrar & Share Transfer Agent (RTA) shall maintain
such other period as is applicable by law. The dividend bank details of their investors [(a) for investors holding
settlement date will be decided by the Managing Director/ securities in dematerialized mode, by seeking the same
whole-time Director. from the depositories. (b) for investors holding securities in
physical mode, by updating bank details of the investors
6.3. Requirement related to declaration and payment of
at their end]. The Company/RTA shall mandatorily
Dividend under SEBI (LODR) Regulations, 2015: As
print the bank account details of the investors on such
our Company’s securities are listed on BSE and NSE, an
payment instruments and in cases where the bank
intimation of at least 2 working days (excluding the date
details of investors are not available, the listed entity shall
of the intimation and date of the meeting of the Board)
mandatorily print the address of the investor on such
is required to be given to aforesaid stock exchange(s) in
payment instructions.

57
Can Fin Homes Ltd

6.6. Payment of Dividend Distribution Tax (DDT): Dividend unpaid after this initial period of validity, it should be
distribution tax will be paid as per the applicable laws. revalidated for not more than three months or a fresh
instrument should be issued which should have a validity
6.7. Prohibition on declaration and payment of dividend: of three months.
A Company which fails to comply with the provisions
of sections 73 (Prohibition on acceptance of deposits 6.13. Revalidation within what period: The Company should
from public) and Section 74 (Repayment of deposits, revalidate the Dividend warrant or issue a fresh Dividend
etc., accepted before commencement of this Act) of the warrant or a demand draft or pay order or electronic
Companies Act, 2013 shall not, so long as such failure/ transfer of funds, in lieu thereof, within 30 days of the
default continues, declare any dividend on its equity receipt of a request for revalidation.
shares in terms of Section 123(6).
6.14. Duplicate Dividend warrant: A duplicate Dividend
6.8. Right of dividend to be held in abeyance pending warrant should be issued only after the expiry of the
registration of transfer shares shall be governed in terms validity of the Dividend warrant and the reconciliation of
of section 126(a) as amended from time to time. the paid amounts thereof. In case the original instrument
is not tendered to the Company, a duplicate warrant
6.9. Determine record date / book closure: The Company shall should be issued only after obtaining requisite indemnity/
determine the date of closure of the register of members declaration from the Shareholder. Where the amount of
and the share transfer register of the Company as per dividend warrant exceeds a sum of H5000/- the indemnity/
requirements of Section 91 of the Companies Act, 2013 declaration shall be obtained from the shareholder on a
read with Regulation 42 of the SEBI LODR. The Company non- judicial stamp paper of H100/.
shall give notice in advance of atleast seven working days
(excluding the date of intimation and the record date) to 6.15. Re-issue of Dividend Warrant: In the case of defaced,
stock exchange(s) of record date specifying the purpose torn or decrepit or error crept-in while printing, if any, on
of the record date. The date of commencement of closure the Dividend warrants, a duplicate warrant may be issued
of the transfer books should not be on a day following a before the expiry of the validity period of the Dividend
holiday. The dates so fixed should also not clash with the warrant on surrender to the Company of such defaced,
clearance programme in the stock exchanges. torn, decrepit warrant or the warrant with printing error.

6.10. Publishing of Book Closure Notice: The Company shall 6.16. Register of Duplicate Dividend Warrants: Particulars
give atleast a 7 days prior notice by advertisement, stating of every Dividend warrant issued as aforesaid should
the dates of closure of its transfer books/record date, at be entered in a Register of Duplicate Dividend Warrants,
least once in a vernacular newspaper in the vernacular indicating the name of the person to whom the Dividend
language having a vide circulation in the district in which warrant is issued, the number and amount of the Dividend
the registered office of the Company is situated and at warrant in lieu of which the duplicate warrant is issued
least once in English language in an English newspaper and the date of issue of such duplicate warrant.
circulating in the district and has wide circulation in the
place where the registered office is located and publish 6.17. Revocation of Dividend: Dividend, once declared,
the Notice on the website of the Company in terms of Rule becomes a debt and should not be revoked.
10 of the Companies (Management and Administration)
Rules, 2014. 7. DECLARATION OF DIVIDEND IN THE EVENT
OF INADEQUACY OR ABSENCE OF PROFITS
6.11. Time gap between two book closures: The time gap
IN ANY YEAR
between two book closure and record date would be at
least 30 days in terms of Regulation 42(4) of SEBI LODR. 7.1. Declaration of dividend out of accumulated profits: In
terms of second proviso of 123 (1) of the Companies Act,
6.12. Initial validity of the Dividend warrant should be for
2013 where, owing to inadequacy or absence of profits
three months: A cheque or warrant for payment of
in any financial year, any Company proposes to declare
Dividend should be valid for three months from the date
dividend out of the accumulated profits earned by it in
thereof and, where such cheque or warrant remains
previous years and transferred by the Company to the

58
 Statutory Reports | Annual Report 2018-19

reserves, such declaration of dividend shall not be made unpaid or unclaimed, to a special account to be opened
except in accordance with the Companies (Declaration by the Company in a scheduled bank to be called “Unpaid
and Payment of Dividend) Rules, 2014. Dividend Account”. Such transfer shall be made within 7
days from the date of expiry of the said period of 30 days
7.2. In terms of Rule 3 of the Companies (Declaration and in terms of section 124 of the Act.
Payment of Dividend) Rules, 2014 as amended from time
to time, in the event of inadequacy or absence of profits 8.2. Failure to transfer attracts interest: If the Company fails
in any year, the Company may declare dividend out of to transfer dividend to special account, it shall be liable to
free reserves subject to the fulfillment of the following pay interest @12% and such interest has to be the amount
conditions, namely:— remaining unpaid in terms of section 124(3) of Act.

(1) The rate of dividend declared shall not exceed the 8.3. Display of details in the web site: In terms of section
average of the rates at which dividend was declared 124(2) of the Act, the Company shall upload the details of
by it in the three years immediately preceding that unpaid and unclaimed dividend in the Company website
year: in PDF format, year wise, with search facility must
be easily accessible free of charge and facilitate easy
Provided that this sub-rule shall not apply to a printing. The process of uploading on the website shall be
Company, which has not declared any dividend in completed within 90 days from the date of transfer of the
each of the three preceding financial year. amount to special account as per Clause 8.1 above.
(2) The total amount to be drawn from such accumulated 8.4. Claimant can apply: In case of any unclaimed/ unpaid
profits shall not exceed one- tenth of the sum of its dividends in respect of the financial years mentioned in
paid-up share capital and free reserves as appearing the website, the claimant may apply for payment in terms
in the latest audited financial statement. of section 124(4) of Act to the Company or its Registrar
and Share Transfer Agent.
(3) The amount so drawn shall first be utilised to set
off the losses incurred in the financial year in which
dividend is declared before any dividend in respect of 9. UNPAID OR UNCLAIMED DIVIDEND TO BE
equity shares is declared. TRANSFERRED TO INVESTOR EDUCATION
PROTECTION FUND (IEPF)
(4) The balance of reserves after such withdrawal shall
not fall below fifteen per cent of its paid up share 9.1. Transfer to IEPF after 7 years: Any money transferred to
capital as appearing in the latest audited financial the unpaid dividend account of a Company in pursuance
statement. of section 124 which remains unpaid or unclaimed for a
period of seven years from the date of such transfer shall
(5) No Company shall declare dividend unless carried be transferred by the Company to the Investor Education
over previous losses and depreciation not provided in and Protection Fund established (IEPF) u/s 125(1) of Act
previous year are set off against profit of the Company and the Company shall file a statement in “Form DIV-5”
of the current year the loss or depreciation, whichever to the Authority constituted under the Act to administer
is less, in previous years is set off against the profit the fund and such authority shall issue a receipt to the
of the Company for the year for which dividend is Company as evidence of such transfer. [Section 124(5)]
declared or paid.
9.2. Shares shall also be transferred to IEPF: In terms of section
124(6) of the Act, all shares in respect of which dividend
8. TRANSFER OF UNPAID OR UNCLAIMED
has not been paid or claimed for seven consecutive years
DIVIDEND TO SPECIAL ACCOUNT
or more shall be transferred in the name of IEPF alongwith
8.1. Transfer of unpaid dividend to Special Account: If a statement containing such details as may be prescribed.
dividend has not been paid or claimed within the 30 days If any person who has a claim on such shares can lodge
from the date of its declaration, the Company is required his claim with Investor Education Protection Fund in such
to transfer the total amount of dividend which remains manner as may be prescribed.

59
Can Fin Homes Ltd

9.3. Manner in which unclaimed dividend to be transferred 10.4. In terms of SEBI LODR (Regulation 33 relating to
to IEPF: The Company shall deposit the unclaimed disclosure in financial results) the Company shall disclose
dividend amount after lapse of 7 years to IEPF within the the following in respect of dividends paid or recommended
prescribed period in the prescribed mode maintain the for the year, including interim dividends:
particulars of unpaid dividend transferred to IEPF for a
period of 8 years from the date of such transfer. (i) amount of dividend distributed or proposed for
distribution per share; the amounts in respect of
In terms of Regulation 43(2) of SEBI LODR, the listed entity different classes of shares shall be distinguished and
shall not forfeit unclaimed dividends before the claim the nominal values of shares shall also be indicated;
becomes barred by law and such forfeiture, if effected,
shall be annulled in appropriate cases. (ii) where dividend is paid or proposed to be paid pro-
rata for shares allotted during the year, the date of
9.4. Display of details in the web site: The Company shall allotment and number of shares allotted, pro-rata
upload the details of unpaid and unclaimed dividend amount of dividend per share and the aggregate
transferred to IEPF in the Company’s website in PDF amount of dividend paid or proposed to be paid on
format, year wise. pro-rata basis.

9.5. ROC filing after 7 years: The Company shall file with the
ROC one copy of the Challan evidencing deposit of the 11. SUMMARY
amount to the Fund in Form -1 in terms of Rule 3 (ii) (b) of
Investor Education and Protection Fund (awareness and 11.1. The management upon compliance to all the rules,
protection of investors) Rules, 2001, as amended from guidelines and regulations as detailed above in this policy
time to time. may recommend to the Board of Directors the dividend
at a rate (exclusive of the dividend distribution tax or any
10. DISCLOSURE other applicable taxes on dividend) of any of the following:

10.1. The Balance Sheet of the Company should disclose under a) Maximum of Dividend payout ratio of 20% (excluding
the head ‘current liabilities and provisions’, the amount taxes).
lying in the Unpaid Dividend Account together with
b) Minimum of 20% of the paid up Equity share capital.
interest accrued thereon, if any.
11.2. While recommending such dividend the management
10.2. The Annual Report of the Company should disclose the
will also take into account dividends declared during the
total amount lying in the Unpaid Dividend Account of the
preceding 3 years.
Company in respect of the last seven years. The amount
of Dividend, if any, transferred by the Company to the 11.3. Not with-standing the above, the Board reserves the right
Investor Education and Protection Fund during the year not to declare dividend or decide any rate of dividend, for
should also be disclosed. a particular year owing to certain regulatory restrictions
if any, during the year, capital conservation prudence, or
10.3. The amounts lying in the Unpaid Dividend Account and
other exigencies which shall be stated by the Board.
the amounts transferred to the Investor Education and
Protection Fund should be disclosed in the Directors’ Report.

60
 Statutory Reports | Annual Report 2018-19

Annexure 4
RELATED PARTY TRANSACTIONS POLICY

[Disclosure as required under Housing Finance Companies – Corporate Governance

(National Housing Bank) Directions, 2016]

1.
BRIEF BACKGROUND

Security Exchange Board of India (SEBI) vide its circular of the transactions were deemed to be ‘Related Party
No.CIR/CFD/POLICY CELL/2/2014 dated April 17, 2014, Transactions’ as per the Accounting Standard on Related
read with circular No.CIR/CFD/POLICY CELL/7/2014 Party Disclosures (AS 18), as notified by the Companies
dated 15 September 2014 has amended clause 35B and (Accounting Standards) Rules, 2006 and Indian
49 of the listing agreement and SEBI (Listing Obligations Accounting Standard on Related Party Disclosures (IND
& Disclosure Requirement) Regulations, 2015. In AS 24), as notified by the Companies (Indian Accounting
terms of the said circular and as per Reg.23 of SEBI Standards) Rules, 2015. Such transactions were duly
(LODR) Regulation, 2015, it is mandatory for the listed disclosed in the Annual Reports of the Company. The
entities to formulate a policy on materiality of related policy shall be applicable to the transactions made with:
party transactions and also on dealing with Related
Party Transactions including clear threshold limits duly a) Board of Directors and their relatives;
approved by the board of directors and such policy shall
b) Key management Personnel (KMP) of the Company
be reviewed by the board of directors at least once every
and their relatives; and
three years and updated accordingly.
c) Related parties, as defined under section 2 (76) of
Can Fin Homes Limited is a public limited Company
the Companies Act 2013 and as amended from time
incorporated on October 29, 1987 under the
to time and the Regulation 2(1)(zb) of SEBI(LODR)
Companies Act, 1956 (Corporate Identity Number
Regulations, 2015.
L85110KA1987PLC008699). The equity shares of the
Company are listed on BSE Limited and the National Stock 3.2. The parties are considered to be related, if, one party
Exchange of India Limited and as such the provisions has ability to control the other party or exercise
of the listing agreements entered into by the Company significant influence over the other party, directly or
with the said stock exchanges (hereinafter collectively indirectly, in making financial and/or operating decisions.
referred to as the ’Listing Agreements’) for equity shares, The description of the related parties is furnished in
are applicable and binding on it. In addition to the above “Appendix-1 – Definitions of various terms used in the
SEBI (Listing Obligations & Disclosure Requirement) policy”.
Regulations, 2015 and amendments thereto is also
applicable to the Company.
4.
TRANSACTIONS ARE CONSIDERED AS
RELATED PARTY TRANSACTIONS
2.
OBJECTIVE OF THE POLICY
4.1. Following types of the transactions considered as related
The policy is framed as per requirements of Regulation 23 party as per section 188 of Companies Act 2013:
of SEBI(LODR) Regulations, 2015 and intended to ensure
proper approval and reporting of transactions between (a) Sale, purchase or supply of any goods or materials;
the Company and its Related Parties. Such transactions (b) selling or otherwise disposing of, or buying, property
shall be appropriate only, if they are in the best interest of of any kind;
the Company and its shareholders.
(c) leasing of property of any kind;

3.
SCOPE OF THE POLICY (d) availing or rendering of any services;

(e) appointment of any agent for purchase or sale of

3.1. During the course of its business, the Company
goods, materials, services or property;
enters into transactions with various entities. Some

61
Can Fin Homes Ltd

(f) such related party’s appointment to any office or place (g) Leasing/HP arrangements availed
of profit in the Company, its subsidiary Company or (h) Leasing/HP arrangements provided
associate Company; and
(i) Purchase of fixed assets
(g) underwriting the subscription of any securities or (j) Sale of f i xed assets
derivatives thereof, of the Company. (k) Interest paid

4.2. Types of the transactions considered as related party (l) Interest received
as per Reg.2(1)(zc) of SEBI(LODR) Regulations, 2015
and IND AS-24, of the Companies (Indian Accounting 5.
IDENTIFICATION OF POTENTIAL RELATED
Standards) Rules, 2015. PARTY TRANSACTIONS
Transfer of resources, services or obligations between a Each Director and Key Managerial Personnel is responsible
Company and a related party, regardless of whether a for providing notice to the Board or the Audit Committee,
price is charged, whether single transaction or group of any potential Related Party Transaction involving him or her
transactions in a contract. or his or her Relative, including any additional information
about the transaction that the Board/ Audit Committee may
4.3. Types of the transactions considered as related party as
reasonably request. The Audit Committee will determine
per AS-18, Accounting Standard- 18 of 2006:
whether the transaction does, in fact, constitute a Related
(a) Purchases or sales of goods (finished or unfinished); Party Transaction requiring compliance with this policy.

(b) Purchases or sales of fixed assets; The notice of any such potential Related Party Transaction
should be given to the Board/Audit Committee well in
(c) Rendering or receiving of services;
advance so that the Audit Committee has adequate time
(d) Agency arrangements; to obtain and review information about the proposed
transaction.
(e) Leasing or hire purchase arrangements;

(f) Transfer of research and development;

6.
PROCESS FOR ASCERTAINING RELATED
(g) License agreements; PARTY
(h) Finance (including loans and equity contributions in The Accounts Dept. shall prepare a list of related party
cash or in kind); on the basis of information collected from the related
(i) Guarantees and Collaterals; and parties as on 31st of March every year and as and when
any person or entity becomes related party, in terms of
(j) Management contracts including for deputation of this policy and declarations received. The related party
employees. list shall be updated whenever necessary and shall be
reviewed at periodical intervals.
4.4. In addition to the above, following transactions between
the related parties shall also be considered as related The internal Auditors/Statutory Auditor are required to
party transactions: verify the process of ascertaining the related parties and
(a) Borrowings their correct recording/ listing in register of Contracts/
(b) Deposit arrangement etc. as well as their classification regarding
whether they are on arm’s length basis.
(c) Placement of deposits
(d) Advances The list of the related parties shall be circulated among the
(e) Investments branches and any transactions with the related parties
shall be carried out as per the Related Party Transaction
(f) Non-funded commitments
policy.

62
 Statutory Reports | Annual Report 2018-19

7.
APPROVAL OF RELATED PARTY TRANSACTION to 10% or more of the turnover of the Company or
H100 Crore, whichever is lower, as mentioned in
7.1. Approval of Related party transactions by Audit clause (a) and clause (e) respectively of sub-section
Committee of the Board: All related Party Transactions (1) of section 188;
proposed to be entered into by the Company shall
require prior approval of Audit Committee except those ii) Selling or otherwise disposing of or buying property
transactions exempted by the committee through of any kind, directly or through appointment of
omnibus specific approval. All “Material” related party agent, amounting to 10% or more of net worth of
transactions shall require approval of the shareholders the Company or H100 Crore, whichever is lower, as
through special resolution and no related party shall vote mentioned in clause (b) and clause (e) respectively of
to approve such resolutions. However, this shall not be sub- section (1) of section 188;
applicable in the following cases. Transactions entered
iii) Leasing of property of any kind amounting to 10% or
into between two government companies;
more of the net worth of the Company or 10% or more
(a) Transactions entered into between a holding Company of turnover of the Company or H100 crore, whichever
and its wholly owned subsidiary whose accounts are is lower, as mentioned in clause (c) of sub-section (1)
consolidated with such holding Company and placed of section 188;
before the shareholders at the general meeting for
iv) Availing or rendering of any services, directly or through
approval.
appointment of agent, amounting to 10% or more of
7.2. Approval of the Board of Directors: All the contracts/ the turnover of the Company or H50 crore, whichever
arrangements prescribed under Section 188(1) of the is lower, as mentioned in clause (d) and clause (e)
Companies Act, 2013 and within the threshold limits, respectively of sub-section (1) of section 188.
which are not in the ordinary course of business of the
7.4. Omnibus approval by the Audit Committee:
Company or on an arm’s length basis shall along with the
approval of the Audit Committee also require approval of 7.4.1. In case of certain frequent/ repetitive/ regular transactions
the Board of Directors of the Company. with Related Parties which are in the ordinary course
of business of the Company (including transactions for
7.3. Approval of Shareholder: All the Material Related Party
support services/sharing of services with Subsidiary/
Transactions (as per Reg.23 of SEBI(LODR) Regulations,
Associate Companies), the Audit Committee may consider
2015) and Related Party Transactions exceeding the
grant of an omnibus approval for such RelatedParty
threshold limits, whether or not in the ordinary course
Transactions proposed to be entered into by the Company,
of business of the Company or on an arm’s length basis,
subject to the following conditions:
shall require prior approval of the Audit Committee, the
Board and the shareholders of the Company by way a. The Audit Committee shall lay down the criteria for
of Special Resolution and no related party shall vote to granting such omnibus approval in line with this Policy
approve such resolution. The shareholders’ approval shall and such approval shall be applicable in respect of
not be required in respect of a resolution plan approved transactions which are repetitive in nature.
under section 31 of the Insolvency Code, subject to the
event being disclosed to the recognized stock exchanges b. The Audit Committee shall satisfy itself that the need
within one day of the resolution plan being approved. for such omnibus approval and that such approval is
in the business interest of the Company.
In the following cases the prior approval of the Company
by a resolution is required whenever a Company is entering c. Such omnibus approval shall specify (i) the name(s)
into a transaction, and such transaction is contracts or of the related party, nature of transaction, period of
arrangements with respect to clauses (a) to (e) of sub- transaction, maximum amount of transaction that can
section (1) of section 188 of the Companies Act, 2013: be entered into, (ii) the indicative base price or current
contracted price and the formula for variation in the
i) sale, purchase or supply of any goods or materials, price, if any and (iii) such other conditions as the Audit
directly or through appointment of agent, amounting Committee may deem fit;

63
Can Fin Homes Ltd

7.4.2. Where the need for Related Party Transaction cannot be The Accounts Department at RO, shall present to the
foreseen and the aforesaid details are not available, the Audit Committee the following information, to the extent
Audit Committee may grant omnibus approval for such relevant, with respect to actual or potential related Party
transactions subject to their value not exceeding H1 crore Transaction.
(Rupees One Crore only) per transaction.
a) A General Description of the transactions
7.4.3. The audit committee shall review, at least on a quarterly
basis, the details of related party transactions entered b) The name of the related party and the basis on which
into by the listed entity pursuant to each of the omnibus such party is a related party.
approvals given.
c) The related party interest in the transaction(s)
7.4.4. Such omnibus approval shall be valid for a period not
d) The approximate rupee value
exceeding 1 (one) year and shall require fresh approval
after the expiry of 1 (one) year from the date of the original e) In case of lease or other transaction providing for
approval granted by the Audit Committee, from time to periodic payments or installments, the aggregate
time. amount of all period payments of installments
expected to be made.
7.4.5. In terms of Schedule II Part C Para B point 2 of
SEBI(LODR) Regulations, 2015, the Audit Committee f) In the case of indebtedness, the aggregate amount of
shall review the statement containing significant Related principal to be outstanding and the rate or amount of
Party Transactions. The threshold limit for determining interest to be payable on such indebtedness.
significant Related Party Transactions will be the same as
applicable for Material Related Party Transactions under g) Any other material information regarding the
Explanation to Reg.23(1) of SEBI(LODR) Regulations, transaction(s) or the related party’s interest in the
2015, as amended from time to time. transactions

8.
PROCEDURE OF SEEKING APPROVAL OF 9.
REVIEW AND APPROVAL OF RELATED PARTY
RELATED PARTY TRANSACTION TRANSACTIONS
As and when any transaction is contemplated with any Related Party Transactions will be referred to the next
Related Party, the concerned office entertaining the regularly scheduled meeting of Audit Committee for
request shall submit to the Accounts Dept. RO, the details review and approval. Any member of the Committee who
of proposed transaction with details/draft contract/ draft has a potential interest in any Related Party Transaction
agreement or other supporting documents justifying will recluse himself or herself and abstain from discussion
that the transactions are on arms’ length basis in an and shall not vote to approve the relevant transaction.
ordinary course of business at prevailing market rate. The
Accounts Department at RO shall appropriately take it up To review a Related Party Transaction, the Committee
for necessary prior approvals from the Audit Committee at will be provided with all, relevant material information of
its next scheduled meeting and convey back the decision the Related Party Transaction, including the terms of the
to the originator. transaction, the business purpose of the transaction, the
benefits to the Company and to the Related Party, and
If the proposed transaction is not in ordinary course of any other relevant matters.
business but at arm’s length basis, then the branch/office
shall give a detailed note with justification to Accounts If the Committee determines that a Related Party
Department RO, for entering such transaction along with Transaction should be brought before the Board, or if
details of proposed transaction with draft agreement/ the Board in any case decides to review any such matter
MoU/other supporting documents. Based on the note the or it is mandatory under any law for Board to approve
Accounts Department at RO, shall escalate the matter the Related Party Transaction, then the considerations
for necessary approvals of the Audit Committee/Board/ set forth above shall apply to the Board’s review and
Share Holders as may be applicable.

64
 Statutory Reports | Annual Report 2018-19

approval of the matter, with such modification as may be 11. DISCLOSURES

necessary or appropriate under the circumstances.
11.1. The Company shall keep a register in the prescribed form
Notwithstanding the foregoing, the following Related giving the full particulars of contracts or arrangements in
Party Transactions shall not require approval of Audit respect of all RPTs approved by the Audit Committee and
Committee or Shareholders: the gist of such contracts/RPTs shall be placed before the
Board periodically.
a. Any transaction that involves providing of
compensation to a director or Key Managerial 11.2. Necessary disclosures shall be made in the Annual
Personnel in connection with his or her duties to the Financial Statements as required under AS 18 and IND
Company or any of its subsidiaries or associates, AS-24 and RBI guidelines. Further, as required under
including the reimbursement of reasonable business Para A of Schedule V of SEBI(LODR) Regulations, 2015
and travel expenses incurred in the ordinary course of necessary details of all materially significant related party
business. transactions which may have potential conflict with the
interests of the Company at large, shall also be also given
b. Any transaction in which the Related Party’s interest
in Report on Corporate Governance section in Annual
arises solely from ownership of securities issued by
Report.
the Company and all holders of such securities receive
the same benefits pro rata as the Related Party. As per Point 2A of Para A of Schedule V of SEBI(LODR)
regulations, 2015 disclosures of transactions of the
10. RELATED PARTY TRANSACTIONS WITHOUT Company with any person or entity belonging to the
THE PRIOR APPROVAL UNDER THIS POLICY promoter/promoter group which hold(s) 10% or more
shareholding in the Company, in the format prescribed in
In the event the Company becomes aware of a Related the relevant accounting standards for annual results.
Party Transaction with a Related Party that has not been
approved under this Policy prior to its consummation, 11.3. Details of all material transactions with related parties
the matter shall be reviewed by the Committee. The shall be disclosed quarterly along with the compliance
Committee shall consider all the relevant facts and report on Corporate Governance.
circumstances regarding the Related Party Transaction
11.4. The Company shall disclose the policy on dealing with
and shall evaluate all options available to the Company,
related party transactions on its website and a web link
including ratification, revision or termination of the Related
thereto shall be provided in the Annual Report.
Party Transaction. The Committee shall also examine
the facts and circumstances pertaining to the failure of 11.5. The Company shall submit within 30 days from the
reporting such Related Party date of publication of its standalone and consolidated
financial results for the half year, disclosures of related
In any case, where the Committee determines not to ratify
party transactions on a consolidated basis, in the format
a Related Party Transaction that has been commenced
specified in the relevant accounting standards for annual
without approval, the Committee, as appropriate, may
results to the stock exchanges and publish the same on
direct additional actions including, but not limited to,
its website.
immediate discontinuation or rescission of the transaction.

In connection with any review of a Related Party 12. RECORDS RELATING TO RELATED PARTY/
Transaction, the Audit Committee has the final authority SUPPORTING DOCUMENTS
to modify or waive any procedural requirements of this
Policy. All disclosures, supporting documents shall be preserved
for a period of eight years from the end of the financial
year to which it relates and shall be kept in the custody of
the Accounts Dept. and any other person authorized by
the Board for the purpose.

65
Can Fin Homes Ltd

Agreement or other supporting documents along with DEFINITIONS

proper justification of the transaction being on arm’s length
basis in the ordinary course of business at a prevailing a. Arm’s Length Transaction
market rate shall also be preserved for a period of 8 years
Explanation Section 188(1)(b) of the Companies Act,
from the end of the financial year to which it relates and
2013 defines an “arm’s length transaction” to mean
shall be kept in the custody of the Board and/or any other
a transaction between two related parties that is
person authorized by the Board for the Purpose.
conducted as if they were unrelated, so that there is
no conflict of interest.
13. INTERPRETATION
b. Associate Company
In any circumstances where the terms of these policies
and procedures differ from any existing or newly enacted A. Companies Act, 2013:
law, rule, regulation or standard governing the Company,
In terms of Section 2(6) of the Companies Act,
the law, rule, regulation or standard will take precedence
2013 “Associate Company” in relation to another
over these policies and procedure until such time as these
Company, means a Company in which that other
policies and procedures are changed to confirm to the
Company has a significant influence, but which
law, rule, regulation or standard.
is not a subsidiary Company of the Company
having such influence and includes a joint venture
14. SECRECY PROVISIONS Company.

In terms of paragraph 5 of Accounting Standard 18, the “significant influence” means control of at least
disclosure requirements do not apply in circumstances twenty per cent of total share capital, or of
when providing such disclosures would conflict with business decisions under an agreement.
the reporting enterprise’s duties of confidentiality as
specifically required in terms of statute, by regulator or “joint venture” means a joint arrangement
similar competent authority. In terms of Paragraph 6 of whereby the parties that have joint control of the
Accounting Standard 18, in case a statute or SEBI prohibits arrangement have rights to the net assets of the
the Company from disclosing certain information which is arrangement.
required to be disclosed, non-disclosure of such information
B. Listing Agreement SEBI(LODR) Regulations, 2015:
would not be deemed as non-compliance with the
requirements of Accounting Standard 18. It is clear from the As per Reg.2(1)(b) of SEBI(LODR) Regulations,
above that on account of the judicially recognized common 2015 “associate” shall mean any entity which is
law duty of the Company to maintain the confidentiality of an associate under sub-section (6) of section 2 of
the customer details, they need not make such disclosures. the Companies Act, 2013 or under the applicable
In view of the above, where the disclosures under the accounting standards.
Accounting Standards are not aggregated disclosures in
respect of any category of related party i.e., where there is c. Audit Committee
only one entity in any category of related party, Company
The term “Audit Committee” means the committee
need not disclose any details pertaining to that related
of Board of Directors the Company constituted
party other than the relationship with that related party.
in accordance with the provisions of Reg. 18 of
SEBI(LODR) Regulations, 2015, Companies Act, 2013
15. REVIEW OF RELATED PARTY TRANSACTION and Rules made thereunder.
POLICY
d. Material Related Party Transaction
The Related Party Transaction Policy is a part of
Corporate Governance Policy. Therefore, the same has to In terms of Explanation to Reg.23(1) of SEBI(LODR)
be reviewed at periodical intervals by the Board as per Regulations, 2015, a transaction with a related party
the Transactions.

66
 Statutory Reports | Annual Report 2018-19

shall be considered material if the transaction(s) to Provided that nothing in sub-clauses (vi) and
be entered into individually or taken together with (vii) shall apply to the advice, directions or
previous transactions during a financial year, exceeds instructions given in a professional capacity;
ten percent of the annual consolidated turnover
of the listed entity as per the last audited financial (viii) any Company which is —
statements of the Company.
(A) a holding, subsidiary or an associate
In terms Reg.23(1A) of SEBI(LODR) Regulations, 2015 Company of such Company; or
notwithstanding the above, a transaction involving
(B) a subsidiary of a holding Company to
payments made to a related party with respect to
which it is also a subsidiary;
brand usage or royalty shall be considered material
if the transaction(s) to be entered into individually (C) an investing Company or the venture of
or taken together with previous transactions during the Company
a financial year, exceed two percent of the annual
consolidated turnover of the listed entity as per the Explanation- For the purpose of this clause,
last audited financial statements of the listed entity. “the investing Company or the venture of a
Company” means a body corporate whose
e. Related Party investment in the Company would result
in the Company becoming an associate
A. Companies Act, 2013:
Company of the body corporate.
The term Related Party has been defined under
(ix) such other person as may be prescribed;
Section 2(76) of the Companies Act, 2013 as
follows- Rule 3 of the Companies (Specification of
definitions details) Rules, 2014, provides
Related Party with reference to a Company
that a Director or Key Managerial Personnel
means –
of the holding Company or his relative
(i) a Director or his relative; with reference to a Company shall also be
deemed to be a related party.
(ii) a Key Managerial Personnel or his relative;
B. SEBI(LODR) Regulations, 2015
(iii) a firm, in which a Director, Manager or his
relative is a partner; The term Related Party has been defined under
Regulation 2(1)(zb) of SEBI(LODR) Regulations,
(iv) a private Company in which a Director or 2015 as follows:
Manager is a member or director;
“related party” means a related party as defined
(v) a public Company in which a Director or under sub-section (76) of section 2 of the
Manager is a Director and holds along with Companies Act, 2013 or under the applicable
his relatives, more than 2% of its paid-up accounting standards:
share capital;
Provided that any person or entity belonging
(vi) any body corporate whose Board of to the promoter or promoter group of the listed
Directors, Managing Director or Manager is entity and holding 20% or more of shareholding
accustomed to act in accordance with the in the listed entity shall be deemed to be a related
advice, directions or instructions of a Director party.
or Manager;
C. Accounting Standard:
(vii) any person on whose advice, directions
or instructions a Director or Manager is As per Standard 10.1 of Accounting Standard 18
accustomed to act: (AS 18) pertaining to Related Party Disclosures

67
Can Fin Homes Ltd

notified by the Companies (Accounting g. Related Party Transaction

Standards) Rules, 2006, a Related Party is
defined as follows - Reg.2(1)(zc) of SEBI(LODR) Regulations, 2015
Clause 49(VII)(A) of the Listing Agreements defines a
Parties are considered to be related if at any “Related Party Transaction” means to be a transfer of
time during the reporting period one party has resources, services or obligations between a Company
the ability to control the other party or exercise and a related party, regardless of whether a price is
significant influence over the other party in charged and a “transaction” with a related party shall
making financial and/or operating decisions. be construed to include a single transaction or a group
of transactions in a contract.
In view of the above definition, AS 18 further
defines the terms ‘control’ and ‘significant h. Relative
influence’ as follows -
In terms of Section 2(77) of the Companies Act, 2013
f. Control – read with the Companies (Specification of definitions
details) Rules, 2014 a person is said to be a relative of
a) ownership, directly or indirectly, of more than one another, if -
half of the voting power of an enterprise, or
a. They are members of a Hindu undivided family;
b) control of the composition of the board of directors
in the case of a Company or of the composition of b. They are husband and wife;
the corresponding governing body in case of any
other enterprise, or c. Father (including step-father);

c) a substantial interest in voting power and d. Mother (including step-mother);

the power to direct, by statute or agreement,
e. Son (including step-son);
the financial and/or operating policies of the
enterprise. f. Son’s wife;

Significant Influence –Participation in the financial g. Daughter;

and/or operating policy decisions of an enterprise, but
not control of those policies. h. Daughter’s husband;

As per Accounting Standard ‘AS-24’ a “related Party” i. Brother (including step-brother); or

is a person or entity that is related to the entity that
j. Sister (including step-sister).
is preparing its financial statements (in this standard
reffered to as the ‘reporting entity’)

68
 Statutory Reports | Annual Report 2018-19

Annexure 5
ANNUAL REPORT ON CSR ACTIVITIES

Our Company’s CSR Policy is broadly based on the Principles of National voluntary guidelines on social, environmental and
economic responsibilities of business released by the Ministry of Corporate Affairs, SEBI guidelines on Business Responsibility
Reporting, the Companies Act, 2013 and ethos of our Sponsor-Canara Bank.

The contents of the CSR Policy of the Company, as approved by the Board, are displayed in the Company’s official website. Our
Company has also chosen ‘Education’, ‘Women Empowerment’, ‘Health care sector’ and ‘Environmental Sustainability’, ”Renewable
energy” as its thrust areas towards implementation of CSR activities.

The CSR Committee comprised of:

Mrs Bharati Rao (Chairperson)

Mr S K Hota – Member
Mr Shreekant M Bhandiwad-Member
Mr G Naganathan – Member

The average net profit of the Company for the last three years is:

Financial Year J in Crore

a Net Profit before Tax for FY 17-18 458.06
b Net Profit before Tax for FY 16-17 370.17
c Net Profit before Tax for FY 15-16 253.86
d Total 1082.09
e Average Net Profit (before Tax) for three years 360.70
f Budgeted CSR amount 2% of (e) above – FY 18-19 7.21
g Unspent amount of FY 15-16 & FY 2016-17 3.30
h Total budget for CSR activities for FY 18-19 (f+g) 10.51

Details of budgeted CSR spent during the financial year:

a) Total amount to be spent for the financial year 18-19: H10.51 Crores.

Out of which an amount of H6.06 Crores has been spent during the year.

b) Unspent amount of FY 18-19 – H4.45 Crore.

The unspent amount has already been sanctioned during the year, however disbursement will be based on progress in the
respective projects.

c) Manner in which the amount spent during the financial year: As per Annexure.

The implementation and monitoring of the CSR Policy is in compliance with CSR objectives and Policy of the Company.

Sd/- Sd/- Sd/- Sd/-

Shreekant M Bhandiwad S K Hota G Naganathan Bharati Rao
Dy. Managing Director Managing Director Director Chairperson

(Members of CSR Committee)

Place: Bengaluru
Date: April 30, 2019

69
Can Fin Homes Ltd

Details of Disbursements/amount spent towards CSR activities as on March 31, 2019

Sl No. CSR Project or activity Identified Sector in District/State Amount Amount Cumulative Amount
which project where projects outlay spent on the expenditure spent :
is covered was undertaken (budget) projects or upto the Direct or
project or programs reporting through
program wise period agency
1 Old Age Home (Sri Matha Charitable Welfare Bengaluru, 82,600 82,600 NIL Direct
Trust) measures Karnataka
2 Govt. Model Primary School, Wilson Promoting Bengaluru, 4,36,370 4,36,370 NIL Direct
Garden, Bengaluru. Education Karnataka
3 Govt. PU Middle School, Promoting Madurai, Tamil 1,96,804 1,96,804 NIL Direct
Parambhupatti, Madurai Dist. Education Nadu
4 Nehru Nodal Uccha Bidyapitha, Promoting Cuttack, Odisha 3,59,564 3,59,564 NIL Direct
Nehru Colony Cuttack. Education
5 Govt. Higher Secondary School, Promoting Thanjavur, Tamil 6,37,200 6,37,200 NIL Direct
Nemmeli. Education Nadu
6 Govt. Primary School, Jani. Promoting Karnal, Haryana 1,78,715 1,78,715 NIL Direct
Education
7 Sri Ramakrishna vidyakendra, Promoting Bengaluru, 8,75,786 8,75,786 NIL Direct
Ramakrishna Mission, Shivanahalli, Education Karnataka
Bengaluru.
8 Sevakshetra hospital and Healthcare Bengaluru, 2,50,276 2,50,276 NIL Direct
Mathruchaya Founding home. Karnataka
(Canara Bank Relief and Welfare
Society)
9 Panchayat Middle School, Ettarai. Promoting Thiruchirapalli, 72,100 72,100 NIL Direct
Education Tamil Nadu
10 1) Purv Madhyamik Vidyalaya, Promoting Lucknow, Uttar 3,51,190 3,51,190 NIL Direct
Rasoolpur, Kaysatha. 2) Primary Education Pradesh
School, Rasoolpur, Kaysatha. 3) Purv
Madhyamik Vidyalaya, Mirjapur,
Chinhat. 4) Madhyamik Vidyalaya,
Mirjapur, Chinhat.
11 Panchayat Union Middle School, Promoting Karur, Tamil Nadu 1,98,339 1,98,339 NIL Direct
Chinna mookanankurichi, Karur. Education
12 Panchayat Union Middle School, Promoting Karur, Tamil Nadu 49,775 49,775 NIL Direct
Ayyampalayam Village, Thanthoni Education
Union.
13 Govt. Primary School, Chinna Promoting Salem, Tamil Nadu 2,04,000 2,04,000 NIL Direct
Ammapalayam. Education
14 Taranga Children School of Deaf and Welfare Shimoga, 4,92,300 4,92,300 NIL Direct
Dumb, Shimoga. measures Karnataka
15 Govt. Higher Primary School, B Promoting Bengaluru, 2,82,492 2,82,492 NIL Direct
Channasandra. Education Karnataka
16 Mandal Parishad Primary School, Promoting Guntur, Andhra 1,18,200 1,18,200 NIL Direct
Sattenapalle. Education Pradesh
17 Govt. Primary School, Bisrakh, Promoting Greater Noida, 4,90,334 4,90,334 NIL Direct
Greater noida. Education Uttar Pradesh
18 Govt. Lower primary school, Promoting Bengaluru Rural, 33,000 33,000 NIL Direct
Anagalapura, Doddaballapura Taluk. Education Karnataka
19 Govt. Higher Secondary School, Promoting Coimbatore, Tamil 2,28,212 2,28,212 NIL Direct
Sundakkamuthur. Education nadu

70
 Statutory Reports | Annual Report 2018-19

Sl No. CSR Project or activity Identified Sector in District/State Amount Amount Cumulative Amount
which project where projects outlay spent on the expenditure spent :
is covered was undertaken (budget) projects or upto the Direct or
project or programs reporting through
program wise period agency
20 Amogh Charitable Trust Welfare Bengaluru, 1,92,753 1,92,753 NIL Direct
-Rehabilitation Centre for differently measures Karnataka
abled children/ persons.
21 Govt. Higher Primary School, Promoting Bengaluru, 6,12,972 6,12,972 NIL Direct
Tavarekere, Magadi Road. Education Karnataka
22 Panchayat Union Primary School, Promoting karur, Tamil Nadu 1,89,744 1,89,744 NIL Direct
Andankoil East village. Education
23 Scholarship for Girl Student. Scholarship Bengaluru, 30,000 30,000 NIL Direct
Karnataka
24 Police headquarters ,Tambaram. Eradicating Chennai, Tamil 6,19,500 6,19,500 NIL Direct
Hunger nadu
25 Govt. Higher Primary School, Promoting Davangere, 52,392 52,392 NIL Direct
Arebassapur, Harapanahalli, Education Karnataka
Davanagere.
26 Govt. Higher Primary School, Promoting Bengaluru, 4,20,100 4,20,100 NIL Direct
Thurahalli, Bengaluru South. Education Karnataka
27 Siva Sakthi Sathya Sai Charitable Welfare Bengaluru, 81,128 81,128 NIL Direct
Trust -Residential Home for measures Karnataka
Intellectually Disabled.
28 Panchayath Union Primary School, Promoting Cuddalore,Tamil 1,65,200 1,65,200 NIL Direct
Cuddalore. Education Nadu
29 Govt. Higher Primary School, Promoting Bengaluru, 6,18,727 6,18,727 NIL Direct
Hosakerehalli, Bengaluru. Education Karnataka
30 1) GVMC Govt. MVD High School, Promoting Visakhapatnam, 2,54,310 2,54,310 NIL Direct
Dandu Bazaar, Vizag and 2) GVMC Education Andhra Pradesh
Govt. Primary School, Kotha salipeta,
Vizag.
31 Akshaya Patra Foundation, Jaipur. Eradicating Jaipur, Rajasthan 8,42,833 8,42,833 NIL Direct
Hunger
32 Tree gaurds to protect plants/ Environmental Siddipet, 5,70,000 5,70,000 NIL Direct
saplings in and around Siddipet . Sustainability Telangana
33 Scholarship for Girl Student,Boisar. Scholarship Mumbai, 12,152 12,152 NIL Direct
Maharashtra
34 1) Govt. Higher Primary School, Promoting Bengaluru, 6,46,910 6,46,910 NIL Direct
Gandhipura, Whitefield. 2) Kuvempu Education Karnataka
Shathamanotsava Govt. Primary
School, Immadihalli.
35 Govt. Higher Primary School, Aduvalli Promoting Bengaluru, 4,23,154 4,23,154 NIL Direct
Village, Hassan. Education Karnataka
36 Govt. High School, Denkada Mandal, Promoting Vizianagaram, 1,36,050 1,36,050 NIL Direct
Vizianagaram. Education Karnataka
37 Ramakrishna Math, Coimbatore. Promoting Coimbatore, 30,00,000 30,00,000 NIL Direct
Education Kerala
38 1) Govt. Lower Primary School, Promoting Udupi, Karnataka 3,40,482 3,40,482 NIL Direct
Belanje, Hebri Taluk, Udupi Dist. 2) Education
Govt. Higher Primary School, Chara,
Karkala Taluk, Udupi Dist.

71
Can Fin Homes Ltd

Sl No. CSR Project or activity Identified Sector in District/State Amount Amount Cumulative Amount
which project where projects outlay spent on the expenditure spent :
is covered was undertaken (budget) projects or upto the Direct or
project or programs reporting through
program wise period agency
39 Panchayath Union Middle School, Promoting Madurai, Tamil 99,500 99,500 NIL Direct
SP Natham, Kallikudi Union, Education Nadu
Thirumangalam.
40 Mandal Primary Parisath Govt. Promoting West Godavari, 1,94,620 1,94,620 NIL Direct
School, Kavvagunta, Pedavegi Education Andhra Pradesh
Mandal.
41 Govt. Pre-University College High Promoting Bengaluru, 2,15,704 2,15,704 NIL Direct
School, Kodigehalli. Education Karnataka
42 Govt. High School, Doddakanahalli. Promoting Mandya, 11,69,144 11,69,144 NIL Direct
Education Karnataka
43 Govt. Higher Secondary School, Promoting Thrissur, Kerala 1,40,278 1,40,278 NIL Direct
Kattoor. Education
44 Karnataka Cancer Therapy & Healthcare Hubli, Karnataka 30,58,000 30,58,000 NIL Direct
Research Institute, Hubli.
45 M/s Parivaar Education Society, Promoting Dewas, Madhya 60,00,000 60,00,000 NIL Direct
Sandalpur village. Education Pradesh
46 M/s Ramakrishna Math Charitable Healthcare Chennai, Tamil 24,80,768 24,80,768 NIL Direct
Dispensary & Diagnostic Centre, Nadu
Mylapore,Chennai.
47 Govt. Higher Primary School, Promoting Thiruvalur, Tamil 2,00,357 2,00,357 NIL Direct
Alangudi, Valangaiman,Thiruvalur. Education Nadu
48 Govt. Girls High School, Kabulpur. Promoting Rohtak, Haryana 2,68,600 2,68,600 NIL Direct
Education
49 Scholarship for 8 students of Scholarship Gujarat, Andhra 5,37,900 5,37,900 NIL Direct
Ahmedabad, Gollapudi, Gachibowli, pradesh,
Ongole, Nelamangala. Telangana,
Karnataka
50 1) Govt. Higher Primary School, Promoting Mangalore, 2,53,900 2,53,900 NIL Direct
Kakkepadavu, Bantwal. 2) Education Karnataka
Anganwady Kendra, Guddemata,
Kakkepadavu.
51 Govt. Model Primary School, Promoting Bengaluru, 8,83,820 8,83,820 NIL Direct
Herohalli, Bengaluru. Education Karnataka
52 Govt. High School, Sivarakottai, Promoting Madurai, Tamil 2,85,250 2,85,250 NIL Direct
Madurai Dist. Education Nadu
53 Govt. Primary School, Mahuar Kala- Promoting Chandauli, Uttar 1,76,100 1,76,100 NIL Direct
1, Chahaniya, Chandauli. Education Pradesh
54 1) Govt. Primary School, Yadawad, Promoting Dharwad, 5,75,742 5,75,742 NIL Direct
Dharwad. 2) Govt. High School, Education Karnataka
Yadawad, Dharwad.
55 Govt. Boys Senior Secondary School, Promoting Delhi 81,402 81,402 NIL Direct
J&K Block, Dilshad Garden Delhi. Education
56 The Hubli Hospice, a charitable trust. Healthcare Hubli, Karnataka 2,00,000 2,00,000 NIL Direct
57 The Akshaya Patra Foundation, Eradicating Karnataka, 56,91,000 56,91,000 NIL Direct
Yeshwanthapura, Jigani, Mangalagiri Hunger Andhra Pradesh
58 M/s Swami Vivekananda Youth Promoting Mysore, Karnataka 19,60,000 19,60,000 NIL Direct
Movement, Mysore. Education

72
 Statutory Reports | Annual Report 2018-19

Sl No. CSR Project or activity Identified Sector in District/State Amount Amount Cumulative Amount
which project where projects outlay spent on the expenditure spent :
is covered was undertaken (budget) projects or upto the Direct or
project or programs reporting through
program wise period agency
59 Shree Shridhara Seva mahamandala, Promoting Shimoga, 3,35,000 3,35,000 NIL Direct
Sagar. Education Karnataka
60 Government Higher Primary School, Promoting Kurnool, Andhra 3,67,260 3,67,260 NIL Direct
Ravudukunda. Education Pradesh
61 Govt Higher primary school, S M Promoting Davanagere, 6,16,020 6,16,020 NIL Direct
Badavane, Davanagere. Education Karnataka
62 Govt Middle school, jatkhedi, bhopal. Promoting Bhopal,Madhya 1,08,970 1,08,970 NIL Direct
Education Pradesh
63 Govt. Rajkiya Uccha Prathamik Promoting Kota, Rajasthan 1,98,311 1,98,311 NIL Direct
Sankshruth Vidyala , Vinoba Bhave Education
Nagar, Kota.
64 1. Govt Urdu Higher Primary School, Promoting Bengaluru, 5,32,888 5,32,888 NIL Direct
Attibele 2. Govt Girls higher primary Education Karnataka
school, Attibele.
65 Gandhi Old Age Home-Registered Welfare Bengaluru, 7,50,770 7,50,770 NIL Direct
Voluntary Organisation. measures Karnataka
66 Govt Higher Primary School, Promoting Tumkur, 58,410 58,410 NIL Direct
Mallekavu, Kortagere Taluk, Tumkur. Education Karnataka
67 1. Govt Higher primary School, Promoting Mysore, Karnataka 4,09,283 4,09,283 NIL Direct
Gangada Hosahalli, H D Kote, Education
Mysore. 2. Government Higher
primary School,, Vaderahasahalli,
Hunsur Taluk, Mysore 3. Government
higher primary School, Dadadahalli,
Jayapura Hobli, Mysore.
68 1. Government Higher primaray Promoting Bengaluru, 5,32,038 5,32,038 NIL Direct
school, Devanahalli 2. Government Education Karnataka
High School, Devanahalli.
69 Supply of 20,000 cotton bags to Ecological Bengaluru, 11,92,270 11,92,270 NIL Direct
avoid usage of plastics Balance Karnataka
70 Jayadeva Institutue of Cardiovascular Healthcare Bengaluru, 78,22,080 78,22,080 NIL Direct
sciences and Research, Bengaluru. Karnataka
71 Canara Bank Relief and Welfare Healthcare Bengaluru, 43,66,336 43,66,336 NIL Direct
Society. Karnataka
72 Rotary, Indiranagar. Promoting Bengaluru, 12,50,000 12,50,000 NIL Direct
Education Karnataka
73 Government High School, Promoting Bengaluru, 3,50,460 3,50,460 NIL Direct
doddabanahalli, kr puram. Education Karnataka
74 Govt High School, Bagalakunte. Promoting Bengaluru, 2,59,980 2,59,980 NIL Direct
Education Karnataka
75 Zilla parishad High school, Promoting Hyderabad, 92,000 92,000 NIL Direct
kushaiguda, keesara mandal, RR dist Education Telangana
76 Govt Lower Primary Achool, Promoting Bengaluru, 33,000 33,000 NIL Direct
kugonahalli, Doddaballapur. Education Karnataka
77 Government Higher Secondary Promoting Raisen, Madhya 97,350 97,350 NIL Direct
School, kharbai, Raisen. Education Pradesh

73
Can Fin Homes Ltd

Sl No. CSR Project or activity Identified Sector in District/State Amount Amount Cumulative Amount
which project where projects outlay spent on the expenditure spent :
is covered was undertaken (budget) projects or upto the Direct or
project or programs reporting through
program wise period agency
78 Government General Hospital, Healthcare Guntur, Andhra 77,408 77,408 NIL Direct
Guntur Pradesh
79 Rajeev Gandhi Municipal High Promoting Kakinada, Andhra 1,85,000 1,85,000 NIL Direct
School, Ananda Bharathi, kakinada. Education Pradesh
80 Nodal Upper Primary School, Promoting Berhampur, 49,000 49,000 NIL Direct
Badapur. Education Odisha
81 Government High School, Bachahalli, Promoting Bengaluru, 48,000 48,000 NIL Direct
Devanahalli. Education Karnataka
82 Govt High School, Karimnagar. Promoting Karimnagar, 1,59,800 1,59,800 NIL Direct
Education Telangana
83 Zilla praja parishad high school, Promoting Nellore, Andhra 57,500 57,500 NIL Direct
kodavalur mandal, Nellore. Education Pradesh
84 Wenlock district Hospital, Mangalore. Healthcare Mangalore, 9,78,500 9,78,500 NIL Direct
Karnataka
85 Panchayat Union Primary School, Promoting Dindigul, 48,380 48,380 NIL Direct
Sallipatty, Nilakkottai. Education Tamilnadu
86 Govt Middle School, Basti Peer Dad, Promoting Jalandhar, Punjab 98,920 98,920 NIL Direct
Jalandhar. Education
87 Deenabandhu Childrens Home, Promoting Chamarajanagara, 73,160 73,160 NIL Direct
Chamarajanagara. Education Karnataka
88 Canara Bank Jubilee Education Fund. Promoting Bengaluru, 85,000 85,000 NIL Direct
Education Karnataka
89 Kanya vidyalaya, madhvapurnagar Promoting Prayagraj, Uttar 1,29,400 1,29,400 NIL Direct
kshetra, Allahabad. Education Pradesh
90 Provided saplings with pots/tree Environmental our branches 44,240 44,240 NIL Direct
guards to the customers Sustainability across India
606,24,483 606,24,483

74
 Statutory Reports | Annual Report 2018-19

Details of CSR activities sanctioned during FY 2018-19 and pending for disbursement

Sl No. CSR Project or activity Identified Sector in which District/State Amount outlay Amount Amount spent :
project is covered where projects was (budget) project or Pending for Direct or through
undertaken program wise Disbursement agency
1 Ramakrishna Math, Coimbatore. Promoting Education Coimbatore,Kerala 9,700,000 6,700,000 Direct
2 Parivaar Education Promoting Education Dewas,Madhya 15,000,000 9,000,000 Direct
Society,Sandalpur. Pradesh
3 Shri Sathya Sai Sanjeevini Hospital. Healthcare Naya 4,700,000 4,700,000 Direct
Raipur,Chattisgarh
4 Scholarship of Student. Promoting Education Ongole,Andhra 30,000 15,000 Direct
Pradesh
5 Scholarship of Girl Student. Promoting Education Mumbai,Maharashtra 46,124 33,972 Direct
6 Ramakrishna Mission,Shivanahalli. Promoting Education Bengaluru,Karnataka 11,504,000 11,504,000 Direct
7 Kidwai Memorial Institute of Healthcare Bengaluru,Karnataka 7,530,000 7,530,000 Direct
Oncology, Bengaluru.
8 Rotary ,Indiranagar,Bengaluru. Promoting Education Bengaluru,Karnataka 2,511,900 1,261,900 Direct
9 Ramakrishna Healthcare Ramanthapuram,Tamil 1,817,480 1,817,480 Direct
math,Ramanathapuram. Nadu
10 Rotary Orchards,Bengaluru. Promoting Education Bengaluru,Karnataka 600,000 600,000 Direct
11 Govt Junior School,Madhuban Promoting Education Ghaziabad,Uttar 172,280 172,280 Direct
bapudham. Pradesh
12 Govt middle school ,tiparpur. Promoting Education Dehradun,Uttarakhand 140,885 140,885 Direct
13 Chetana Child Development Promoting Education Mangalore,Karnataka 1,000,000 1,000,000 Direct
centre,Seva Bharathi.
54,752,669 44,475,517

Sd/- Sd/- Sd/- Sd/-

Shreekant M Bhandiwad S K Hota G Naganathan Bharati Rao
Dy. Managing Director Managing Director Director Chairperson

(Members of CSR Committee)

Place: Bengaluru
Date: April 30, 2019

75
Can Fin Homes Ltd

Annexure 6
BUSINESS RESPONSIBILITY REPORT

Business Responsibility Report is a disclosure mandated by the Securities and Exchange Board of India (SEBI) for the top 500 listed
companies [Reg.34(2)(f)]. It covers intiatives taken from an environment, social and governance perspective.

SECTION A- GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identity Number (CIN) of the Company L85110KA1987PLC008699

2. Name of the Company CAN FIN HOMES LIMITED
3. Registered Address No.29/1, 1st Floor,
Sir M N Krishna Rao Road,
Basavanagudi, Bengaluru 560004
Tel: 080 26564259/ 26567655
FAX: 080 26565746
4. Website www.canfinhomes.com
5. Email id compsec@canfinhomes.com
development@canfinhomes.com
6. Financial Year reported 2018-19
7. Sector(s) that the Company is engaged in Housing Finance- 64192
(industrial activity code-wise) Insurance – 65110
(Industrial Group as per National Industrial Classification
Ministry of Statistics and Programme Implementation)
8. List three key products / services that the Company (i) Housing loan to individuals
manufactures / provides (as in balance sheet) (ii) Housing loan to Builders/developers and
(iii) Loan against Property.
9. Total number of locations where business activity is
undertaken by the Company
a. Number of International Locations (Provide details of NA (No overseas presence as of date).
major 5)
b. Number of National Locations As on date CFHL is spread across Country with 154 branches,
21 Affordable Housing Loan Centres and 14 Satellite offices in
21 States/Union Territories.
10. Markets served by the Company - Local / State / National India
/ International

76
 Statutory Reports | Annual Report 2018-19

SECTION B - FINANCIAL DETAILS OF THE COMPANY

1. Paid up capital 2,663.31 (H in Lakh)

2. Total turnover 1,73,134.56 (H in Lakh) (FY2018-19)
3. Total profit after taxes 29,676.43 (H in Lakh) (FY2018-19)
4. Total spending on Corporate Social 2.04
Responsibility (CSR) as percentage of
profit after tax (%)
5. List of activities in which expenditure Providing desks & benches, Tables, Almirahs, Green Board/ Chairs etc., construction/
in four above has been incurred: repair & renovation of Schools/ Hostels, Drinking water facility/ supply of other
articles of necessity, Nali kali round tables/ chairs, providing Electrical & Electronic
Items, Toilet facility, Scholarship, providing School bags & Stationery items, purchase
of Hospital Equipment, necessity items at Old age homes, Solar Lighting system,
Tree planting under environmental protection/ sustainability, saplings with Tree
Guards/ pots to the customers, eradicating hunger, construction of Tuition centre,
construction of hostels for Tribal Children etc.

SECTION C - OTHER DETAILS

1. Does the Company have any Subsidiary Company/Companies?

CFHL does not have any subsidiary.

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? If yes, then indicate the
number of such subsidiary Company(s).
Not applicable.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR
initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, more
than 60%]
Not applicable.

SECTION D - BUSINESS RESPONSIBILITY INFORMATION

1. Details of Director / Directors responsible for BR:

a. Details of the Director / Directors responsible for implementation of the BR policy/ policies:
The Board of the Company is collectively responsible for the implementation of the BR policies of the Company.

b. Details of the BR head:

Sl. No. Particulars Details

1. DIN (if applicable) 07491088
2. Name Shri S K Hota
3. Designation Managing Director and CEO
4. Telephone No. 080-26568687
5. e-mail id hotask@canfinhomes.com

77
Can Fin Homes Ltd

2. Principle-wise (as per NVGs) BR Policy / policies (Reply in Y / N)

Principle 1 Principle 2 Principle 3

Businesses should conduct and Businesses should provide Businesses should promote the
govern themselves with Ethics, goods and services that are safe well being of all employees.
Transparency and Accountability. and contribute to sustainability
throughout their life cycle.

Principle 4 Principle 5 Principle 6

Businesses should respect the Businesses should respect and Businesses should respect, protect
interests of, and be responsive promote human rights. and make efforts to restore the
towards all stakeholders, especially environment.
those who are disadvantaged,
vulnerable and marginalised.

Principle 7 Principle 8 Principle 9

Businesses, when engaged in Businesses should support Businesses should engage
influencing public and regulatory inclusive growth and equitable with and provide value to their
policy, should do so in a responsible development. customers and consumers in a
manner. responsible manner.

78
 Statutory Reports | Annual Report 2018-19

(a) Details of Compliance (Reply in Yes ‘Y’ or No ‘N’)

Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

1. Do you have a policy / policies for: Y Y Y Y Y Y N Y Y
2. Has the policy been formulated in consultation with Y Y Y Y Y Y N Y Y
the relevant stakeholders?
3. Does the policy conform to any national / All the policies have been developed as a result of detailed
international standards? If Yes, specify? consultation, experience and research on the best practices adopted
(50 words) in the Industry.
4. Has the policy being approved by the Board? If Y Y Y Y Y Y N Y Y
yes, has it been signed by MD / Owner / CEO /
appropriate Board Director?
5. Does the Company have a specified Committee Y Y Y Y Y Y N Y Y
of the Board/Director / Official to oversee the
implementation of the policy?
6. Indicate the link for the policy to be viewed www.canfinhomes.com/Policies-Codes.aspx
online?
7. Has the policy been formally communicated to Y Y Y Y Y Y N Y Y
all relevant internal and external stakeholders?
8. Does the Company have in-house structure to Y Y Y Y Y Y N Y Y
implement the policy/ policies?
9. Does the Company have a grievance redressal Y Y Y Y Y Y N Y Y
mechanism related to the policy/ policies to
address stakeholders’ grievances related to the
policy/ policies?
10. Has the Company carried out independent audit / All the policies of the Company are reviewed/ evaluated internally.
evaluation policy by an internal or external agency?

(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)

Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

1. The Company has not understood the
Principles.
2. The Company is not at a stage where
it finds itself in a position to formulate
and implement the policies on specified
principles.
3. The Company does not have financial or Not Applicable * Not Applicable
manpower resources available for the task.
4. It is planned to be done within next 6
months.
5. It is planned to be done within the next
1 year.
6. Any other reason (please specify).
*The Company presently is not a member of any trade and chamber or association.

79
Can Fin Homes Ltd

3. Governance related to BR: 2. How many stakeholder complaints have been received
in the past financial year and what percentage was
(a) Indicate the frequency with which the Board of Directors, satisfactorily resolved by the management?
Committee of the Board or CEO meets to assess the BR
performance of the Company - Within 3 months, 3-6 3301 complaints were received during the financial
months, annually, more than 1 year. year 2018- 19, from various stakeholders (housing loan
3-6 months. applicants, borrowers, depositors, shareholders and
debenture holders). 3286 complaints, working out to 99.55
(b) Does the Company publish a BR or a Sustainability percent were satisfactorily resolved.
Report? What is the hyperlink for viewing this report?
How frequently it is published? During the year, the Company had received 2 complaints
(SEBI SCORES) from investors and both the complaints
The Company publishes the BR Report in the Annual
have been resolved satisfactorily.
Report, on the website of the Company (www.
canfinhomes. com) and files the same online on NSE & BSE Principle 2 - Businesses should provide goods and services
websites. that are safe and contribute to sustainability throughout
their life cycle.
SECTION E - PRINCIPLE-WISE PERFORMANCE The Company believes that a business done with moral values
and principles will only sustain and has integrated its business
Principle 1 - Business should conduct and govern themselves
values and operations to meet the expectations of its customers,
with ethics, transparency and accountability.
employees, investors, stakeholders and community at large. The
1. Does the policy relating to ethics, bribery and corruption Company provides and maintains a clean, healthy and safe
cover only the Company? working environment for employees, customers and stakeholders.
The Company strives to enhance its standards of service delivery.
Yes. The Company believes in ethical and transparent The biggest social responsibility of helping people to have homes
practices. It is committed to maintain the highest standards of their own is the main objective of the Company. To facilitate the
of ethics in all spheres of its business activities. The Board of same, the Company has been providing loans to home buyers at
Directors and senior management have a responsibility to set competitive rates of interest through its various schemes.
exemplary standards of ethical behaviour. The Management
constantly endeavours to inculcate this ethical behaviour at 1. List upto 3 products or services whose design has
all levels in the organization so that it becomes an integral incorporated social or environmental concerns, risks
part of the work culture among all its employees. and/ or opportunities.

The Company believes that transparency means being open a. 21 Affordable Home Loan Centres (AHLCs) have been
in its relationship with its customers and all its stakeholders opened to cater to affordable housing loans under
as well as in the conduct of its business. The Company Credit Linked Subsidy Scheme (PMAY) and loans
believes in empowerment and has delegated decision- eligible for refinance under Affordable Housing Fund
making powers to appropriate levels in the organizational (both rural and urban) at competitive rate of interest
hierarchy. Each executive and employee is similarly to beneficiaries belonging to Economically Weaker
accountable for the functions and responsibilities entrusted Section (EWS), LIG & MIG, Women, Schedule Castes /
to him/her. The Company believes that transparency Schedule Tribes / Other Backward Classes, Minorities,
increases accountability and scrutiny. Every employee of Persons with disabilities and Transgender.
the Company shall conduct himself / herself professionally b. To bring about the empowerment of women, the
and deal on behalf of the Company with honesty and Company offers housing loans to women applicants who
integrity, while conforming to high ethical standards. are the sole owner of the property or the joint owner in a
jointly owned property at concessional rates of interest.
Does it extend to the Group/Joint Ventures/ Suppliers/
Contractors/ NGOs /Others? c. Schemes offering one- time concession of 0.05% in
ROI for initial one year, for individual housing loans
Not applicable. granted to women beneficiaries (for loans upto H25
80
 Statutory Reports | Annual Report 2018-19

lakh in metro / urban areas), Naval / Airforce / Defence of products and waste (separately as <5 percent, 5-10
personnel (both in service and after retirement) and percent, >10 percent). Also, provide details thereof, in
physically challenged persons. about 50 words or so.

2. For each product, provide the following details in respect Since the Company is not involved in any manufacturing
of resource use (energy, water, raw material etc.) per activity, the reporting on recycle mechanism is not applicable.
unit of product (optional)? The Company minimises the consumption of electrical energy
and natural resources and shall strive to prevent pollution of
Since the Company is not involved in any manufacturing air, water and land.
activity, the reporting on use of energy, water, raw material
etc. is not applicable. However, while considering financing Principle 3 - Businesses should promote the wellbeing of all
housing project these factors are given due importance. It employees.
may be mentioned here that the Company minimises the
consumption of electrical energy and natural resources 1. Please indicate the total number of employees.
and under its green initiative, has installed solar power in Total number of employees as on March 31, 2019 was 792.
16 branches and has been ensuring usage of paper to the 2. Please indicate the total number of employees hired on
minimum. temporary/ contractual/casual basis.
3. Does the Company have procedures in place for 200 employees are hired on a contractual basis.
sustainable sourcing (including transportation)? If
yes, what percentage of your inputs was sourced 3. Please indicate the number of permanent women
sustainably? employees.
144 are permanent women employees in the Company as
Since the Company is not involved in any manufacturing on March 31, 2019, which constitute 24.32 percent of the
activity, the reporting on sustainable sourcing is not total permanent employee strength of the Company.
applicable.
4. Please indicate the number of permanent employees
4. Has the Company taken any steps to procure goods
with disabilities.
and services from local & small producers, including
communities surrounding their place of work? If yes, 3 employees.
what steps have been taken to improve their capacity
5. Do you have an employee association that is recognized
and capability of local and small vendors?
by management?
The Company has, to the best possible extent, tried to There is no employees’ association. However, mechanisms
improve the capacity and capability of local and small are in place for employees to represent their issues, if any.
vendors by patronizing them to supply / provide different
6. What percentage of your permanent employees is
services required by the Company for its day to day
members of this recognized employee association?
administration / operation.
Not Applicable.
5. Does the Company have a mechanism to recycle products
and waste? If yes, what is the percentage of recycling

7. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in
the last financial year and pending, as on the end of the financial year.

Sl. No. Category pending as on No. of complaints filed during the financial No. of complaints pending at
year the end of the financial year
1. Child labour/forced labour/ CFHL does not hire child labour, forced labour Not applicable
involuntary labour or involuntary labour- No cases reported.
2. Sexual harassment None Not applicable
3. Discriminatory employment None Not applicable

81
Can Fin Homes Ltd

8. What safety and skill up-gradation training was The Company has also introduced a system of getting
provided in the last year? customer feedback online through Company’s website and
by way of mailers to customers to record his/her feedback.
Internal and external training for upgrading and enhancing
The branches will go through such feedback and resolve
the skills and knowledge level was given to different
the complaints/ take necessary action for resolution of the
categories of employees viz. permanent employees
issues raised by the customer.
(including women and employees with disabilities) and
contract employees. Principle 5 - Businesses should respect and promote human
rights.
Principle 4 - Businesses should respect the interests of, and
be responsive towards all stakeholders, especially those 1. Does the policy of the Company on human rights cover
who are disadvantaged, vulnerable, and marginalised. only the Company or extend to the Group / Joint Ventures
/ Suppliers / Contractors / NGOs / Others?
1. Has the Company mapped its internal and external
stakeholders? The Company abides by the principle of respect and support
for human rights and adheres to the spirit of fundamental
The Company’s key stakeholders include promoters,
rights in its policies and systems. The Company ensures
employees, customers, business associates, recovery
that all individuals impacted by its business shall have
agents, investors, agents, suppliers and regulatory
access to grievance redressal mechanisms. The Company
agencies. Our Investors comprise of shareholders
conducts business in a manner that respects the rights and
(including Institutional Investors, corporate bodies, foreign
dignity of all people, complying with all legal requirements.
institutional investors, foreign bodies etc.).
2. How many stakeholder complaints have been received
The Company and its employees strive to provide value
in the past financial year and what percent was
based services to the stakeholders. The Company is in
satisfactorily resolved by the management?
constant touch with its various stakeholders to understand
their concerns and assess their requirements and respond For stakeholder complaints, kindly refer Principle 1 under
to their needs in an effective manner. Section E of this BR Report.

2. Out of the above, has the Company identified the Principle 6 - Business should respect, protect, and make
disadvantaged, vulnerable & marginalised stakeholders? efforts to restore the environment.

The Company through its schemes for Affordable home 1. Does the policy related to Principle 6 cover only the
loans helps customers with incomes in the lower brackets/ Company or extends to the Group / Joint Ventures /
lower strata of society. Suppliers / Contractors / NGOs / others?

3. Are there any special initiatives taken by the Company The Company is committed to respect, protect and make
to engage with the disadvantaged, vulnerable and efforts towards renewable resources to avoid depletion
marginalised stakeholders? If so, provide details thereof, of natural resources. The Company shall comply with
in about 50 words or so. legal / regulatory requirements related to environment
protection, management and sustainable development.
Formal and informal consultations/ meetings are held
The Company as a part of its CSR has extended financial
with the different stakeholders at different management
support for installation of solar plant at 4 organisations.
levels to obtain their ideas, views and opinions for better
The Company has also taken the CSR initiative to provide
handling of their interests.
tree saplings along with tree pots/ guards to the loan
If the customers have any grievances, they can make a borrowers under environmental sustainability. 20,000
complaint by letter or by email addressed to the concerned cotton bags were supplied to customers with a message
Branch Manager. In case the grievance is not resolved to avoid use of plastic.
within 7 days, it can be escalated to the Complaint
Redressal Officer in the Registered Office.

82
 Statutory Reports | Annual Report 2018-19

2. Does Company have strategies/ initiatives to address 2. Have you advocated/lobbied through above associations
global environmental issues such as climate change, for the advancement or improvement of public good?
global warming, etc.? Not Applicable.
Not applicable since the Company is engaged in providing
finance for construction / purchase of house / flat. Principle 8 - Businesses should support inclusive growth
and equitable development.
The Company has replaced models of computers, printers
and other equipment which were consuming more energy. 1. Does the Company have specified programmes/
The Company has installed solar energy powered lighting initiatives/projects in pursuit of the policy related to
and computer operation in 16 branches. Usage of paper Principle 8? If yes details thereof.
is reduced substantially and the Company is gradually The Company with its objective of promoting home
moving towards paperless environment. ownership and increasing housing stock across the
Country functions on the principles of inclusive growth and
3. Does the Company identify and assess potential equitable development. By opening 189 offices (March
environmental risks? 31, 2019) throughout the Country, which includes 21
Yes. The Company being in the business of granting Affordable Home Loan Centres and 14 Satellite Offices to
housing loans ensures housing projects which are exclusively cater to affordable loans under rural housing,
environmentally safe and secure, by taking opinion from urban housing, PMAY (CLSS) schemes - EWS/LIG/MIG,
the experts, i.e., from panel valuers. the Company is trying in its own way to contribute to the
overall development of the country.
4. Does the Company have any project related to Clean
Development Mechanism? If so, provide details thereof, Further the Company as part of its CSR initiative, with
in about 50 words or so. Also, if yes, whether any an intention to benefit the poor and marginalised people
environmental compliance report is filed? in the society has helped improve infrastructure in 57
Not applicable. Government schools during the year.

5. Has the Company undertaken any other initiatives on – 2. Are the programmes/projects undertaken through in-
clean technology, energy efficiency, renewable energy, house team/own foundation/external NGO/Government
etc. Y/N. If yes, please give hyperlink for web page etc. structures/any other organization?

NIL The Company as a part of its Corporate Social

Responsibility (CSR) initiative has identified and funded 57
6. Are the Emissions/Waste generated by the Company schools for infrastructure and basic amenities that were
within the permissible limits given by CPCB/SPCB for the lacking, through its in- house teams.
financial year being reported?
3. Have you done any impact assessment of your initiative?
Not Applicable.
All CSR activities of CFHL are conducted with the direct
7. Number of show cause/ legal notices received from involvement of Company officials and the impact of
CPCB/ SPCB which are pending (i.e. not resolved to the initiative are measured by follow-up visits. We are
satisfaction) as on end of Financial Year. contacting the beneficiaries of our CSR initiatives to
NIL. ascertain/quantify the impact on the society.

Principle 7 - Businesses when engaged in influencing public 4. What is your Company’s direct contribution to community
and regulatory policy, should do so in a responsible manner. development projects- amount in INR and the details of
the projects undertaken?
1. Is your Company a member of any trade and chamber or Apart from contributions towards CSR activities to the
association? extent of H6.06 Crore, the Company has made small
The Company presently is not a member of any trade and contributions towards other activities viz., Yoga events,
chamber or association. Marathon conducted to support under-privileged
children, etc.

83
Can Fin Homes Ltd

5. Have you taken steps to ensure that this community Principle 9 - Businesses should engage with and
development initiative is successfully adopted by the provide value to their customers and consumers in a
community? Please explain in 50 words or so. responsible manner.
We are contacting the beneficiaries of our CSR initiatives
1. What percentage of customer complaints/consumer
to ascertain/quantify the impact on the society.
cases are pending as on the end of financial year.
We have made contribution of H78.22 lakh to Sri Jayadeva Percentage of customer complaints pending as on March
Institute of Cardiovascular Sciences and Research, 31, 2019 - 1.08 percent (34 pending out of 3142 received).
Bengaluru towards purchase of Heart Lung Machine. The
machine benefits around 10-15 patients per day. 2. Does the Company display product information on the
product label, over and above what is mandated as per
Contribution of H30.58 lakh to Karnataka Cancer Therapy local laws?
& Research Institute, Hubbali, towards purchase of CFHL is a housing finance Company and hence not
Anesthesia machine which is now used round the clock. applicable.
Funds for procuring 156 beds of different types has also
been given. 3. Is there any case filed by any stakeholder against the
Company regarding unfair trade practices, irresponsible
Contribution of H39.36 lakh to Akshaya Patra foundation advertising, and/or anti-competitive behaviour during
towards midday meal to 6150 children at Mangalagiri for the last five years and pending as at end of financial year.
6 months has been made. If so, provide details thereof, in about 50 words or so.

Contribution of H9.78 lakhs to Wenlock hospital for There is no such instance.

purchase of a laparoscopy machine which helps around
4. Did your Company carry out any consumer survey/
10 patients every day, to undergo Keyhole surgeries.
consumer satisfaction trends?
The Company has not carried out any formal consumer
survey/ consumer satisfaction trends. However, the
Company collects customer feedback through mailers and
customer portal hosted on the website of the Company.

Sd/- Sd/-
Place: Bengaluru S K Hota Bharati Rao
Date : May 22, 2019 Managing Director Chairperson

84
 Statutory Reports | Annual Report 2018-19

Annexure 7

FORM AOC 2

Particulars of contracts/arrangements made with related parties

[Pursuant to Clause (h) of Sub-section (3) of Section 134 of the Companies Act, 2013, and Rule 8(2)
of the Companies (Accounts) Rules, 2014-AOC-2]

This Form pertains to the disclosure of particulars of contracts/ arrangements entered into by the Company with related parties
referred to in Sub-section(1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto.

Details of contracts or arrangements or transactions not at arm’s length basis

There were no contracts or arrangements or transactions entered into during the year ended March 31, 2019, which were not in
arm’s length basis.

Details of material contracts or arrangements or transactions at arm’s length basis

The details of material contracts or arrangements or transactions at arm’s length basis for the year ended March 31, 2019 are as
follows:

Nature of Contract Nature of Date of Sanction Tenure Salient Terms * Outstanding Interest
relationship (years) Amount Paid
(in J Crore)
1) Loans from
Canara Bank
Term Loan 143 Sponsor Bank August 21, 2017 10 TL at MCLR 1,500.00 122.95
Term Loan 150 Sponsor Bank February 27, 2018 10 TL at MCLR 200.00 16.38
Term Loan 153 Sponsor Bank February 27, 2018 10 TL at MCLR 200.00 16.39
Term Loan 157 Sponsor Bank February 27, 2018 10 TL at MCLR 100.00 8.18
Term Loan 161 Sponsor Bank November 02, 2018 10 TL at MCLR 450.00 15.33
Term Loan 162 Sponsor Bank November 02, 2018 10 TL at MCLR 50.00 1.55
2) Working Capital Sponsor Bank February 27, 2018 1 Over Draft facility 716.45 15.91
from Canara
Bank
Working Capital Sponsor Bank February 27, 2018 1 Over Draft facility 111.06 3.07
from Canara
Bank
Total 3327.51 199.76

*(other terms & conditions as per respective agreement)

85
Can Fin Homes Ltd

Nature of Contract Nature of Date of Sanction Tenure Salient Terms * Outstanding

relationship (years) Amount
(in J Crore)
1) Deposit with Canara
Bank
0684.302.216/58 Sponsor Bank June 28, 2017 1 Fixed Deposit at 6.90% 0.00
0684.302.216/59 Sponsor Bank July 03, 2017 1 Fixed Deposit at 6.75% 0.00
0684.302.216/60 Sponsor Bank July 03, 2017 1 Fixed Deposit at 6.75% 0.00
0684.302.216/61 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/62 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/63 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/64 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/65 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/66 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/67 Sponsor Bank July 30, 2017 1 Fixed Deposit at 6.65% 0.00
0684.302.216/68 Sponsor Bank August 21, 2017 1 Fixed Deposit at 6.75% 0.00
0684.302.216/69 Sponsor Bank August 21, 2017 1 Fixed Deposit at 6.75% 0.00
0684.302.216/72 Sponsor Bank September 30, 2017 1 Fixed Deposit at 6.50% 0.00
0684.302.216/73 Sponsor Bank September 30, 2017 1 Fixed Deposit at 6.50% 0.00
0684.302.216/74 Sponsor Bank February 25, 2018 1 Fixed Deposit at 6.50% 0.00
0684.302.216/75 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/9 Sponsor Bank February 10, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/10 Sponsor Bank March 28, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/11 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/12 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/13 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.90% 0.00
0684.401.2868/14 Sponsor Bank August 28, 2017 1 Fixed Deposit at 6.75% 0.00
0684.401.2868/15 Sponsor Bank August 28, 2017 1 Fixed Deposit at 6.75% 0.00
0684.401.2868/16 Sponsor Bank February 10, 2018 1 Fixed Deposit at 6.50% 0.00
0684.401.2868/17 Sponsor Bank March 28, 2018 1 Fixed Deposit at 6.50% 0.00
0684.401.2868/18 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.50% 0.00
0684.401.2868/19 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.50% 0.00
0684.401.2868/20 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.50% 0.00
26733.200.149/11 Sponsor Bank January 28, 2018 1 Fixed Deposit at 6.50% 0.00
26733.200.149/10 Sponsor Bank December 31, 2017 1 Fixed Deposit at 6.50% 0.00
26733.200.149/9 Sponsor Bank December 31, 2017 1 Fixed Deposit at 6.50% 0.00
26733.200.149/12 Sponsor Bank December 31, 2018 1 Fixed Deposit at 7.00% 0.50
26733.200.149/13 Sponsor Bank December 31, 2018 1 Fixed Deposit at 7.00% 0.50
26733.200.149/14 Sponsor Bank January 28, 2019 1 Fixed Deposit at 7.00% 0.70
6843.200.216/90 Sponsor Bank February 25, 2019 1 Fixed Deposit at 7.00% 0.55
6843.200.216/75 Sponsor Bank March 31, 2018 1 Fixed Deposit at 6.50% 0.75
6843.200.216/76 Sponsor Bank June 28, 2018 1 Fixed Deposit at 6.50% 0.20

86
 Statutory Reports | Annual Report 2018-19

Nature of Contract Nature of Date of Sanction Tenure Salient Terms * Outstanding

relationship (years) Amount
(in J Crore)
6843.200.216/77 Sponsor Bank July 03, 2018 1 Fixed Deposit at 6.50% 0.50
6843.020.0216/78 Sponsor Bank July 03, 2018 1 Fixed Deposit at 6.50% 0.50
6843.020.0216/79 Sponsor Bank August 21, 2018 1 Fixed Deposit at 6.70% 0.50
6843.020.0216/80 Sponsor Bank August 21, 2018 1 Fixed Deposit at 6.70% 0.50
6843.020.0216/81 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.50
6843.020.0216/82 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.90
6843.020.0216/83 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.90
6843.020.0216/84 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.90
6843.020.0216/85 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.90
6843.020.0216/86 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.90
6843.020.0216/87 Sponsor Bank August 30, 2018 1 Fixed Deposit at 7.00% 0.50
6843.020.0216/88 Sponsor Bank September 30, 2018 1 Fixed Deposit at 6.70% 0.70
6843.020.0216/89 Sponsor Bank September 30, 2018 1 Fixed Deposit at 6.70% 0.75
0684.020.0216/21 Sponsor Bank August 28, 2018 1 Fixed Deposit at 6.70% 0.55
0684.020.0216/22 Sponsor Bank August 28, 2018 1 Fixed Deposit at 7.00% 0.55
0684.010.2868/23 Sponsor Bank February 10, 2019 1 Fixed Deposit at 6.50% 1.12
0684.010.2868/24 Sponsor Bank March 28, 2019 1 Fixed Deposit at 7.00% 0.45
0684.010.2868/25 Sponsor Bank March 31, 2019 1 Fixed Deposit at 7.00% 0.85
0684.010.2868/26 Sponsor Bank March 31, 2019 1 Fixed Deposit at 7.00% 0.85
0684.010.2868/27 Sponsor Bank March 31, 2019 1 Fixed Deposit at 7.00% 0.56
0684.860.0012/1 Sponsor Bank March 30, 2019 10 days Fixed Deposit at 6.00% 400.00
Total 417.08

87
Can Fin Homes Ltd

Nature of Contract Nature of Duration of Salient terms Outstanding

relationship Contract Amount
(in J Crore)
2) Total Interest earned on 1.25
Canara Bank Deposit
Rent paid to Canara Bank Sponsor Bank On going Rent for Premises of Branches at 0.62
Noida, Chennai, New Delhi, NCR-
Pitampura and Mangalore
Bank charges paid to Canara Sponsor Bank On going As per norms 0.22
Bank
Salary of Managing Director/s Sponsor Bank On going As per norms 0.45
paid to Canara Bank
Sitting Fees of Directors paid Sponsor Bank On going As per norms 0.05
to Canara Bank
Commission received Sponsor Bank One time 0.80
Registrar & Transfer Agency Subsidiary of 3 years As per the R&T agreement 0.14
charges paid to Canbank Sponsor Bank
Computer Services Ltd
Secured Redeemable Pension Fund One time As per the terms and conditions of 10.00
Non Convertible Taxable of Sponsor the NCD issue.
Debentures invested by Bank Interest
Canara Bank Employee 1.53
Pension Fund
Secured Redeemable Pension Fund One time As per the terms and conditions of 40.00
Non Convertible Taxable of Sponsor the NCD issue.
Debentures invested by Bank Interest
Canara Bank staff Provident 3.07
Fund
Secured Redeemable Pension Fund One time As per the terms and conditions of 10.00
Non Convertible Taxable of Sponsor the NCD issue.
Debentures invested by Bank
Canara Bank Employee Interest 0.76
Gratuity Fund
Other Payments to Canara Sponsor Bank On going As per norms 0.05
Bank
Remuneration to KMPs KMP’s of the On going As per norms 0.43
Company

Appropriate approvals have been taken for related party transactions u/s 188 of Companies Act, 2013 at the 31st AGM of the
Company held on July 18, 2018 & approvals of Audit committee & Board of Directors as required under listing agreements/SEBI
(LODR) regulations 2015 & Companies Act 2013. Advances paid have been adjusted against billings wherever applicable

Sd/- Sd/- Sd/-

Place: Bengaluru Atanu Bagchi S K Hota Bharati Rao
Date : April 30, 2019 Deputy General Manager & CFO Managing Director Chairperson

88
 Statutory Reports | Annual Report 2018-19

Annexure 8
EXTRACT OF ANNUAL RETURN

(Form No. MGT - 9)

AS ON THE FINANCIAL YEAR ENDED ON MARCH 31, 2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014

I. REGISTRATION AND OTHER DETAILS:

i. CIN L85110KA1987PLC008699
ii. Registration Date October 29, 1987
iii. Name of the Company CAN FIN HOMES LTD
iv. Category/Sub-Category of the Company Financial Institution – Housing Finance
v. Address of the Registered office and contact No.29/1, 1st Floor, Sir M N Krishna Rao Road, Near Lalbagh West
details Gate, Basavanagudi Bengaluru – 560 004, Karnataka
vi. Whether listed Company Yes
vii. Name, Address and Contact details of Canbank Computer Services Ltd.
Registrar and Transfer Agent, if any Unit: Can Fin Homes Ltd., R&T Centre No.218, J P Royale, 1st
Floor, 2nd Main, Sampige Road, (Near 14th Cross), Malleshwaram,
Bengaluru – 560 003.
Contact Person: Shri A.Ravi, Manager
Tel:080-23469661/662/664/665
e-mail: ravi@ccsl.co.in

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the Company shall be stated:-

Sr. No. Name and Description of main NIC Code of the Product/ service % to total turnover of the
products/ services Company
1. Housing Loans 64192 89.50%
2. Non housing --- 10.50%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr. No. Name And Address of the CIN/GLN Holding/ Subsidiary %of shares held Applicable
Company /Associate Section
2. Nil

89
Can Fin Homes Ltd

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Category of Shareholders No. of Shares held at the beginning of the year – No. of Shares held at the end of the year- % Change
March 31, 2018 March 31, 2019 during the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoter
1) Indian -- -- -- -- -- -- -- -- --
a) Individual/ HUF -- -- -- -- -- -- -- -- --
b) Central Govt -- -- -- -- -- -- -- -- --
c) State Govt(s) -- -- -- -- -- -- -- -- --
d) Bodies Corp -- -- -- -- -- -- -- -- --
e) Banks / FI 39930365 -- 39930365 29.99 39930365 -- 39930365 29.99 --
f) Any Other (Promoter -- -- -- -- -- -- -- -- --
Group)
Sub-total(A)(1):- 39930365 -- 39930365 29.99 39930365 -- 39930365 29.99 --
2) Foreign -- -- -- -- -- -- -- -- --
g) NRIs-Individuals -- -- -- -- -- -- -- -- --
h) Other-Individuals -- -- -- -- -- -- -- -- --
i) Bodies Corp. -- -- -- -- -- -- -- -- --
j) Banks / FI -- -- -- -- -- -- -- -- --
k) Any Other…. -- -- -- -- -- -- -- -- --
Sub-total(A)(2):- -- -- -- -- -- -- -- -- --
Total Shareholding of 39930365 -- 39930365 29.99 39930365 -- 39930365 29.99 --
Promoter (A) = (A)(1)+(A)(2)
B. Public Shareholding -- -- -- -- -- -- -- -- --
1. Institutions -- -- -- -- -- -- -- -- --
a) Mutual Funds 3991414 1000 3992414 3.00 3785280 1000 3786280 2.85 (0.15)
b) Banks / FI 110886 -- 110886 0.08 1023579 -- 1023579 0.77 0.69
c) Central Govt -- -- -- -- -- -- -- -- --
d) State Govt(s) -- -- -- -- -- -- -- -- --
e) Venture Capital -- -- -- -- -- -- -- -- --
f) Insurance Companies -- -- -- -- 191278 -- 191278 0.14 0.14
g) FIIs -- -- -- -- -- -- -- -- --
h) Foreign Venture Capital -- -- -- -- -- -- -- -- --
Funds
i) Others (specify) -- -- -- -- -- -- -- -- --
(i) Foreign Financial -- 2000 2000 0.00 -- 2000 2000 0.00 --
Institutions
Sub-total(B)(1) 4102300 3000 4105300 3.08 5000137 3000 5003137 3.76 0.67

90
 Statutory Reports | Annual Report 2018-19

Category of Shareholders No. of Shares held at the beginning of the year – No. of Shares held at the end of the year- % Change
March 31, 2018 March 31, 2019 during the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
2. Non Institutions
a) Bodies Corp. 20816970 45000 20861970 15.67 19408810 44500 19453310 14.61 (1.06)
i) Indian
ii) Overseas
b) Individuals
(i) Individual shareholders 29186877 3030385 32217262 24.19 29648221 2331296 31979517 24.00 (0.19)
holding nominal share
capital upto H2 Lakh
(ii) Individual shareholders 7358952 -- 7358952 5.52 7930323 -- 7930323 5.96 0.44
holding nominal share
capital in excess of H2
Lakh
c) Qualified Foreign Investor -- -- -- -- -- -- -- -- --
d) Others(Specify)
i) Non-Resident Indians 1958307 10000 1968307 1.48 1658806 -- 1658806 1.25 (0.23)
ii) Clearing Members 794138 -- 794138 0.60 882652 -- 882652 0.66 0.06
iii) Hindu Undivided 982140 -- 982140 0.74 728657 -- 728657 0.55 (0.19)
Families
iv) Employee 7300 18385 25685 0.02 13360 8330 21690 0.02 --
Shareholders
v) Director & their -- -- -- -- -- -- -- -- --
relatives
vi) Custodian - -- -- -- -- -- -- --
vii) Trusts 13256 -- -- 0.01 24841 -- 24841 0.02 0.01
viii) Foreign Corporate 24648700 -- 26468700 18.51 25288027 -- 25288027 18.99 0.48
Bodies
iX) Foreign National/ -- -- -- -- -- -- -- -- --
Individual
x) IEPF Authority 248050 -- 248050 0.19 252800 -- 252800 0.19 --
Sub-total(B)(2) 86014690 3103770 89118460 66.93 85836497 2384126 88220623 66.25 (0.68)
Total Public Shareholding 90116990 3106770 93223760 70.01 90836634 2387126 93223760 70.01 --
(B)=(B)(1)+(B) (2)
C. Shares held by Custodian -- -- -- -- -- -- -- -- --
for GDRs&ADRs
Grand Total (A+B+C) 130047355 3106770 133154125 100.00 130766999 2387126 133154125 100.00 --

ii) Shareholding of Promoters

Sr. No Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change in
Name share holding
No. of % of total % of Shares Pledged No. of % of total % of Shares Pledged
during the
Shares Shares of the / encumbered to Shares Shares of the / encumbered to
year
Company total shares Company total shares
1. Canara Bank 39930365 29.99 -- 39930365 29.99 -- --
Total 39930365 29.99 -- 39930365 29.99 -- --

91
Can Fin Homes Ltd

iii. Change in Promoters’ Shareholding (please specify, if there is no change)

Sr. No Shareholder’s Name Shareholding at the beginning of Cumulative Shareholding during

the year the year
No. of Shares % of total No. of Shares % of total
Shares of the Shares of the
Company Company
At the beginning of the year 39930365 29.99
Date wise Increase / Decrease in -- -- 39930365 29.99
Promoters Share holding during the year
specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus/
sweat equity etc): No Change
At the End of the year 39930365 29.99 39930365 29.99

iv. Shareholding pattern of top ten shareholders (other than Directors, Promoters, Holders of GDRs and ADRs)

Sr. No Shareholder’s Name Shareholding at the beginning Cumulative Shareholding during

of the year the year
No. of Shares % of total No. of Shares % of total
Shares of the Shares of the
Company Company
1 CALADIUM INVESTMENT PTE LTD.
At the beginning of the year 17904245 13.45
Date wise Increase / Decrease in -- -- 17904245 13.45
Shareholding during the year: No Change
April 01, 2018 to March 31, 2019
At the End of the year 17904245 13.45
2 CHHATTISGARH INVESTMENTS LIMITED
At the beginning of the year 12873055 9.67
Date wise Increase / Decrease in (893644) (0.67) 11979411 9.00
Shareholding during the year: Sale
From April 01, 2018 to March 31, 2019
At the End of the year 11979411 9.00
3 NITIN RAOJIBHAI DESAI
At the beginning of the year 2156600 1.62
Date wise Increase / Decrease in -- -- 2156600 1.62
Shareholding during the year: No Change
From April 01, 2018 to March 31, 2019
At the End of the year 2156600 1.62
4 APAX GLOBAL ALPHA LIMITED
At the beginning of the year 0 0
Date wise Increase / Decrease in 1532000 1.15 1532000 1.15
Shareholding during the year: Purchase
From April 01, 2018 to March 31, 2019
At the End of the year 1532000 1.15

92
 Statutory Reports | Annual Report 2018-19

Sr. No Shareholder’s Name Shareholding at the beginning Cumulative Shareholding during

of the year the year
No. of Shares % of total No. of Shares % of total
Shares of the Shares of the
Company Company
5 SARDA ENERGY AND MINERALS LIMITED
At the beginning of the year 1500000 1.13
Date wise Increase / Decrease in -- -- 1500000 1.13
Shareholding during the year: No Change
From April 01, 2018 to March 31, 2019
At the End of the year 1500000 1.13
6 AADI FINANCIAL ADVISORS LLP
At the beginning of the year 0 0.00
Date wise Increase / Decrease in 1302195 0.98 1302195 0.98
Shareholding during the year: Purchase
From April 01, 2018 to March 31, 2019
At the End of the year 1302195 0.98
7 AKASH BHANSHALI
At the beginning of the year 0 0.00
Date wise Increase / Decrease in 1193392 0.90 1193392 0.90
Shareholding during the year: Purchase
From April 01, 2018 to March 31, 2019
At the End of the year 1193392 0.90
8 MOTILAL OSWAL FOCUSED EMERGENCE
FUND
At the beginning of the year 800000 0.60
Increase / Decrease in Shareholding during 363600 0.27 1163600 0.87
the year: Purchase
From April 01, 2018 to March 31, 2019
At the End of the year 1163600 0.87
9 GHANSHYAMDAS MUNDRA
At the beginning of the year 9999070 0.75
Date wise Increase / Decrease in 9999070 0.75
Shareholding during the year: No Change
From April 01, 2018 to March 31, 2019
At the End of the year 9999070 0.75
10 STATE BANK OF INDIA
At the beginning of the year 0 0.00
Date wise Increase / Decrease in 752000 0.56 752000 0.56
Shareholding during the year: Purchase
From April 01, 2018 to March 31, 2019
At the End of the year 752000 0.56

P.S: The percentage of shareholding is calculated on the paid-up share capital.

93
Can Fin Homes Ltd

v. Shareholding of Directors and Key Managerial Personnel

Sr. No Shareholder’s Name Shareholding at the beginning Cumulative Shareholding during

of the year the year
No. of Shares % of total No. of Shares % of total
Shares of the Shares of the
Company Company
NIL

VI. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment
(Amount in H)
Secured loans Unsecured loans Deposits Total
excluding deposits excluding deposits
Opening Balance
Principal 101,453,635,817 35,473,572,626 2,282,997,805 139,210,206,248
interest due but not paid - - - -
Interest accrued but not due for 442,622,904 125,440,617 568,063,521
payment
Total 101,896,258,721 35,599,013,243 2,282,997,805 139,778,269,769
Change in indebtedness - -
Addition 47,550,000,000 98,300,000,000 2,602,790,646 145,850,000,000
Reduction 19,939,669,400 98,168,086,079 2,274,840,604 118,107,755,480
Net Change 27,610,330,599 131,913,920 327,950,042 27,742,244,519
Closing Balance -
principal 128,756,482,220 35,576,938,274 2,610,947,847 166,944,368,341
interest due but not paid - - - -
Interest accrued but not due for 1,827,339,342 29,146,586 - 1,856,485,928
payment
Total 130,583,821,562 35,606,084,860 2,610,947,847 168,800,854,269

94
 Statutory Reports | Annual Report 2018-19

VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Director and/or Manager

(Amount in H)
Sr. No Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
S.K.Hota Shreekant M Bhandiwad
Managing Director Dy. Managing Director
1 Gross Salary
(a) Salary as per provisions contained in 17,95,544 15,29,621 33,25,165
Section 17(1) of the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) of the -- -- --
Income Tax Act, 1961
(c) Profits in lieu of salary under section 17(3) -- -- --
of Income Tax Act,1961
2 Stock Option -- -- --
3 Sweat Equity -- -- --
4 Commission
-as% of profit
-others, Incentive 3,60,083 3,06,066 6,66,149
5 Others (Company’s contribution to PF) 1,01,364 86,117 1,87,481
Total (A) 22,56,991 19,21,804 41,78,795
Ceiling as per the Act 2,96,73,690

P.S.: Re-imbursement of salary to Canara Bank for the year ended March 31, 2019.

B. Remuneration to other Directors

(Amount in H)
Sr. No Particulars of Remuneration Name of the Directors Total Amount
T V Rao K N Prithviraj G Naganathan Bharati Rao Yeluri Vijayanand
Independent Directors
Fee for attending board and 1,20,000 40,000 5,90,000 5,55,000 3,95,000 --
committee meetings
Commission -- -- -- -- -- --
Others, please specify -- -- -- -- -- --
Total (1) 1,20,000 40,000 5,90,000 5,55,000 3,95,000 17,00,000
Other Non-Executive Directors S A Kadur P V Bharathi S Subramanian Debashish -- --
Mukherjee
• Fee for attending board and 90,000 2,65,000 1,55,000 30,000 -- --
committee meetings
• Commission -- -- -- -- -- --
• Others, please specify -- -- -- -- -- --
Total (2) 90,000 2,65,000 1,55,000 30,000 -- 5,40,000
Total (B)=(1+2) 22,40,000
Total Managerial Remuneration -- -- -- -- -- 22,40,000
Overall Ceiling as per the Act -- -- -- 3,26,41,059

95
Can Fin Homes Ltd

C. Remuneration to Key Managerial Personnel other than Managing Director, Whole-time Director and/or Manager

(Amount in H)
Sr. No Particulars of Remuneration Key Managerial Personnel Total
Shamila M Atanu Bagchi Veena G Kamath
General Manager DGM and CFO AGM and CS
1 Gross Salary
(a) Salary as per provisions contained 15,07,057 13,55,402 13,10,907 41,73,366
in Section 17(1) of the Income Tax
Act, 1961
(b) Value of perquisites u/s 17(2) of -- 3,208 -- 3,208
the Income Tax Act, 1961
(c ) Profits in lieu of salary under -- -- -- --
section 17(3) of Income Tax Act,
1961
2 Stock Option -- -- -- --
3 Sweat Equity -- -- -- --
4 Commission
- as% of profit
- others, Incentive/LFC 50,000 60,000 60,000 1,70,000
5 Others (Company’s contribution to PF) 1,37,292 1,31,496 1,14,061 3,83,486
Total 16,94,986 15,50,106 14,84,968 47,30,060

VIII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES

There were no penalties/punishments/compounding of offences for the year ending March 31, 2019

Sd/- Sd/- Sd/-

Place: Bengaluru Veena G Kamath S K Hota Bharati Rao
Date : May 22, 2019 Company Secretary Managing Director Chairperson

96
 Statutory Reports | Annual Report 2018-19

Annexure 9
CORPORATE POLICIES

We seek to promote and follow the highest level of ethical standards in all our business transactions guided by our value system.
Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 our Company has formulated certain policies and such policies are available on our website viz., https://www.canfinhomes.
com/ The policies are reviewed periodically by the Committees of the Board and modifications, if any, based on need and change
in applicable laws, are approved by the Board. The list of such policies with their web links is as follows:

Name of the Brief description & Web link

policy

Nomination & This policy formulates for selection and to identify persons who are qualified to become Directors of the
Remuneration Company and also the criteria for determining the remuneration of the directors, key managerial personnel
Policy and other employees.
https://www.canfinhomes.com/pdf/Nomination-Remuneration-and-HR-Policy-120419.pdf

Dividend The policy provides the framework of the Company in relation to the calculation, declaration and settlement
Distribution Policy of the dividends and the determination of the form and time periods within which Dividends are paid.
https://www.canfinhomes.com/pdf/Dividend-Distribution-Policy-120419.pdf

Related Party The policy regulates all the transactions between the Company and its related parties.
Transactions https://www.canfinhomes.com/pdf/Related-Party-Transactions-Policy-of-the-Company-120419.pdf
Policy

Whistle Blower The Company has adopted a whistle-blower mechanism for directors and employees to report concerns
Policy about unethical behaviour, actual or suspected fraud, or violation of the Company’s code of conduct and
ethics.
https://www.canfinhomes.com/pdf/Whistle-Blower-Policy-120419.pdf

CSR Policy The policy outlines the Company’s strategy to bring about a positive impact on society through programs
relating to socio economic development in rural areas, improve education, eradicate extreme hunger
and poverty, promote gender equality and empowering women, reducing child mortality and improving
maternal health, health care and sanitization, ensuring environmental sustainability, employment
enhancing vocational skills, social business projects, promoting and protecting natural heritage and
culture and such other matters of common good.
https://www.canfinhomes.com/pdf/CSR-Policy-120419.pdf

Policy for This policy provides for the material events requiring disclosures, mandatory as well as based on the
determining decision as to the materiality for disclosure to stock exchanges as well as on the website of the Company
Materiality for in terms of Reg.30 of SEBI (LODR) Regulations, 2015.
Disclosures https://www.canfinhomes.com/pdf/Disclosure-of-material-events-or-information-120419.pdf

Familiarisation This policy is aimed at familiarising the Independent Directors with the Company, their roles, rights,
Policy responsibilities, nature of the Industry in which the Company operates, business model of the Company,
apprise them of the change in the applicable laws and regulations from time to time etc. through various
familiarisation programs, presentations and informatory notes.
https://www.canfinhomes.com/pdf/Familiarisation-Policy-120419.pdf

97
Can Fin Homes Ltd

Name of the Brief description & Web link

policy

Archival Policy The provisions of Archival policy defines the time period for which material events / information shall
continue to be hosted on the website of the Company & the status thereafter.
https://www.canfinhomes.com/pdf/Archival-Policy-120419.pdf

Code of Conduct The Company has adopted the Code of Conduct and ethics for Directors, Independent Directors and
for Directors, Senior Management Personnel.
Independent https://www.canfinhomes.com/pdf/Code-Of-Conduct-for-Directors-120419.pdf
Directors
https://www.canfinhomes.com/pdf/Code-Of-Conduct-for-Independent-Directors-120419.pdf
and Senior
Management https://www.canfinhomes.com/pdf/Code-Of-Conduct-for-Senior-Management-Personnel-120419.pdf

Code of Fair The purpose of this Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive
Disclosure Information is to clearly outline the procedures and practical guidelines that would be followed by the
Company for transparent, regular, consistent and timely public disclosure and dissemination of unpublished
price sensitive information.
https://www.canfinhomes.com/pdf/Code-of-PIT-and-Disclosure-120419.pdf

* P. S The Company has revamped its website w.e.f. April 13, 2019

98
 Statutory Reports | Annual Report 2018-19

Report of Directors on
Corporate Governance
Corporate Governance is a set of systems and practices ensuring Your Company has been responsive to its stakeholders and
commitment to values, compliance of statutory regulations, striving to provide equal, timely and cost efficient access to
political and economic environments, ethical conduct of relevant information to all, with whom it has business relations.
business, accountability, transparency, voluntary practices,
disclosures and acceptance by management of the inalienable The Board has a set policy on Corporate Governance to
rights of shareholders as the true owners of the Company. It help fulfil Company’s corporate responsibility towards its
involves relationships between the management, the Board of stakeholders. The Board, at the discretion, may change
directors and all its stakeholders. the policy or guidelines periodically to achieve our stated
objectives. Further, these guidelines allow the Board to make
Good Corporate Governance is ensured by taking fair and decisions that are independent of the management. The
ethical business decisions and also conducting business taking policy is available on the website of the Company at the link
into account the stakeholders’ interests. Corporate Governance https://www.canfinhomes.com/pdf/Corporate-Governance-
is the key to the integrity of corporations, financial institutions Policy-120419.pdf
and markets.
Your Company has built confidence amongst the stakeholders
The corporate governance arrangements are those through all these years by adherence to the standards and principles
which an organisation directs and controls itself and the of corporate governance, compliance with statutory and
people associated with it by establishing standards and codes regulatory directions/guidelines, and by its determination to
of conduct. Good Corporate Governance is a way of life that achieve higher levels of excellence in the areas of meeting
necessitates taking into account the stakeholders interests in stakeholder expectations, customer satisfaction, employee
every business decision. welfare and its obligations towards the society.

Your Company strives to achieve the objectives of the principles

1. Company’s Philosophy on Code of Governance to protect and facilitate the exercise of the rights of its
shareholders like right to be informed of the changes, effective
The Company, the Board, the promoters and the employees
participation & vote in general meetings, adequate mechanism
have embraced statutory and regulatory changes towards
to address the grievances of the shareholders, stakeholders,
strengthening corporate governance. The Company’s corporate
etc., and provide timely and adequate information to
governance philosophy encompasses enhancement of value
shareholders, equitable treatment, etc. Your Company respects
for all stakeholders. The Company’s Board follows ethical
the rights of its stakeholders.
standards of Corporate Governance and adheres to the norms
and disclosure requirements mentioned under SEBI (Listing The directors are pleased to present this report on the Corporate
Obligations and Disclosure Requirements) Regulations, 2015 Governance practices followed in your Company.
and SEBI (Listing Obligations and Disclosure Requirements)
(Amendment) Regulations, 2018 (hereinafter collectively
referred to as “the Listing Regulations”) as applicable and 2. Board of Directors
looks at corporate governance as a part of its business. It also
The Board consists of seven members with an optimum
adheres to the applicable provisions under the Housing Finance
combination of executive, non-executive directors and
Companies – Corporate Governance (National Housing Bank)
independent directors including 1 woman director. The Board
Directions, 2016.
of Directors comprises of 7 Directors, out of which 2 are
The Company has a strong commitment to the principles that Executive and 5 are Non- Executive Directors, which includes 3
underline the effective corporate Governance. The Company’s Independent Directors. The Chairperson of the Board is a Non -
Board oversees how the management serves and protects the Executive Independent Director. The Directors of your Company
long-term interests of the stakeholders. Over more than three are persons of integrity and bring to the Board a wide range
decades, the Company has put in place the best practices of knowledge, experience, diversity of thought and skills. The
for the timely, adequate, explicit and accurate disclosure of Directors are professionals in their niche areas and persons of
information on Company’s financials, performance, governance eminence with vast experience in the fields of banking, housing
and other related matters. finance, audit, management, HR, risk management, resources,

99
Can Fin Homes Ltd

law and other relevant areas. The Board Diversity Policy forms ensure that the Company has clear goals aligned to shareholder
part of the Nomination Remuneration and HR Policy of the value and its growth.
Company, which is available on the website of the Company
at the link https://www.canfinhomes.com/pdf/Nomination- The Board fulfils its other key functions like reviewing the
Remuneration-and-HR-Policy-120419.pdf corporate strategy, major plans of action, risk policy, annual
budgets and business plans, setting performance objectives,
(i) Role of the Board of Directors monitoring implementation and corporate performance and
overseeing major capital expenditures, etc. The Board also
The Board effectively carries out its responsibilities like providing monitors and reviews the effectiveness of the Company’s
strategic guidance to the Company, code of conduct for the governance practices, succession plan, ensuring integrity of
executives, disclosure of information about their concerns and the Company’s accounting and financial reporting systems,
interests, adherence to the Code of Conduct etc. The Board independent audits, systems of risk management, financial
applies high ethical standards and acts with due diligence and and operational control, compliance with the law and relevant
care in the best interest of the Company and its stakeholders. standards and such other responsibilities as expected by the
The primary role of the Board is that of trusteeship to protect regulatory authorities.
and enhance shareholder value through strategic direction to the
Company. As trustees, the Board has fiduciary responsibility to

(ii) Composition of the Board and Category of Directors

Promoter, Executive, No. of shares held by

Sl.
Name of the Director Age DIN Non-Executive, Independent the Directors as at
No.
Non-Executive, Nominee etc. March 31, 2019#
1 Smt Bharati Rao, Chairperson 70 01892516 Independent Non-Executive Nil
2 Shri S K Hota, Managing Director 52 07491088 Promoter & Executive Nil
3 Shri Debashish Mukherjee 53 08193978 Promoter & Non-Executive Nil
4 Shri G Naganathan, FCA 56 00423686 Independent Non-Executive Nil
5 Shri Shreekant M Bhandiwad 49 08120906 Promoter & Executive Nil
6 Dr. Yeluri Vijayanand 71 00594503 Independent Non-Executive Nil
7 Shri S Subramanian 58 07901414 Promoter & Non-Executive Nil
# No. of Shares of Can Fin Homes Ltd.
- The tenure of the Office of Shri K N Prithviraj (DIN:00115317), the Non-Executive Independent Director and Chairperson of the Board and Shri T V Rao
(DIN:05273533), the Non-Executive Independent Director of the Company was completed on conclusion of the 31st Annual General Meeting of the
Company held on July 18, 2018.
- Shri S A Kadur (DIN:06426985), Director (General Manager, Canara Bank) has laid down his Office on attainment of superannuation w.e.f September 30,
2018. In pursuance of the same, he has tendered his resignation as Director (Non-executive Promoter Director) of our Company and the written notice of
the same is received on October 1, 2018.
- Smt P V Bharathi (DIN 06519925), Non-executive Promoter Director of our Company has resigned from the Board of our Company w.e.f. February 01,
2019, on her elevation and appointment as the Managing Director & Chief Executive Officer of Corporation Bank.

The Chairperson of the Board Smt Bharati Rao is an Directors. Shri G Naganathan and Dr. Yeluri Vijayanand are the
Independent Non-Executive Chairperson. Shri S K Hota is Independent Non-Executive Directors on the Board.
the Managing Director (Promoter & Executive Director) of the
Company since May 19, 2016. Shri Shreekant M Bhandiwad is The appointments, re-appointments, resignations etc., of the
the Dy. Managing Director (Promoter & Executive Director) of directors are covered separately in this report.
the Company since April 28, 2018. Shri Debashish Mukherjee
The composition of the Board is as specified in Regulation
and Shri S Subramanian are Non-Executive Promoter
17(1), 17(1A) & 17(1B) of SEBI (Listing Obligation & Disclosure

100
 Statutory Reports | Annual Report 2018-19

Requirements) Regulations, 2015 and also as required under Bank; Shri S Subramanian and Shri S K Hota are General
Chapter XI of the Companies Act, 2013. Managers in Canara Bank; and Shri Shreekant M Bhandiwad
is Dy. General Manager in Canara Bank, the promoter
The Non-Executive Directors are eligible for sitting fees for of the Company.
attending the meetings of the Board and Committees, within
the limits prescribed under the Companies Act, 2013. (iv) Attendance of each Director etc.

(iii) Disclosure of relationships between directors inter-se ; The details of the Board of Directors in terms of their attendance,
number of meetings attended/held during the financial year
None of the Board of Directors are related inter-se. However, ended March 31, 2019, sitting fees paid and their attendance
Shri Debashish Mukherjee is an Executive Director of Canara at the AGM are as under:

Board Meetings
Sitting Fee Attendance at the last Annual
Name of the Director attended/ held during
Paid (J) General Meeting held on July 18, 2018
their tenure in CFHL
Smt Bharati Rao, Chairperson 9/10 2,25,000 Attended
Shri S K Hota, Managing Director 10/10 NA Attended
Shri G Naganathan, FCA 10/10 2,30,000 Attended
Shri Shreekant M Bhandiwad 9/10 NA Attended
Smt P V Bharathi 7/8 1,50,000# Attended$
Dr. Yeluri Vijayanand 7/7 1,70,000 Not Applicable@
Shri S Subramanian 5/5 1,30,000# Not Applicable*
Shri S A Kadur 3/4 60,000# Attended%
Shri K N Prithviraj, Former Chairperson 2/2 40,000 Attended^
Shri T V Rao 2/2 40,000 Attended-
Shri Debashish Mukherjee 1/2 30,000# Not Applicable**
$ Smt P V Bharathi (DIN 06519925), Non-executive Promoter Director of our Company has resigned from the Board of our Company w.e.f. February 01,
2019, on her elevation and appointment as the Managing Director & Chief Executive Officer of Corporation Bank.

@ Appointed as an Additional Director (Independent) on Board w.e.f August 29, 2018.

* Appointed as an Additional Director (Promoter) on Board w.e.f October 06, 2018.

% Shri S A Kadur (DIN:06426985), Director (General Manager, Canara Bank) has laid down his Office on attainment of superannuation w.e.f September 30,
2018. In pursuance of the same, he has tendered his resignation as Director (Non-executive Promoter Director) of our Company and the written notice of
the same is received on October 01, 2018.

^ The tenure of the Office of Shri K N Prithviraj (DIN:00115317), the Non-Executive Independent Director and Chairperson of the Board, was completed on
conclusion of the 31st Annual General Meeting of the Company held on July 18, 2018.

- The tenure of the Office of Shri T V Rao (DIN:05273533), the Non-Executive Independent Director of the Company was completed on conclusion of the
31st Annual General Meeting of the Company held on July 18, 2018.

** Appointed as an Additional Director (Promoter) on Board w.e.f March 12, 2019.

# Sitting fee paid to Canara Bank.

101
Can Fin Homes Ltd

(v) Skills / Expertise / Competencies of the Board of Directors

The Board of our Company comprises of qualified members who bring along a plethora of required skills, competence and expertise
to make effective contributions to the Board and its committees. The Board members are committed to ensure that the Company’s
Board is in compliance with the highest standards of corporate governance.

The table below summarizes the key competencies, skills and attributes which are taken into consideration while nominating
Directors to serve on the Board.

Knowledge of housing Knowledge on Company’s business, policies and All the Directors possess the knowledge of
finance business and culture (including the Vision, Mission and Values), the industry and business.
about the Company strengths & weaknesses, major risks/ threats and
potential opportunities and knowledge of the industry
in which the Company operates.
Financial Skills Management of the finance function of a company, One of the Directors is a Chartered
financial management, capital allocation, financial Accountant and the remaining directors
reporting processes, or experience in supervising are veteran bankers and aware of financial,
finance, accounts, taxation and audit. accounting and audit matters.
Leadership, Behavioural Leadership experience in reputed banks, practical Most of our Directors have decades of
skills & HR Management understanding of organization, processes, strategic experience in the Banking industry and
planning, risk management and change management. exposed to these managerial traits. They
have managed diverse HR issues.
Global business Experience in driving business in markets around All directors have exposure to diverse
the world, understanding of diverse business business and global market environment.
environments, economic conditions, cultures, and
regulatory frameworks, and a broad perspective on
global market opportunities.
Business Strategy & Experience in developing strategies to grow sales and All the directors possess attributes to drive
Sales and marketing acquiring market share, build brand awareness and growth and brand building.
equity, and enhance enterprise reputation.
Knowledge of IT and IT Knowledge of technology, how to anticipate All directors are well aware of the IT and IT
Security technological trends, resolving security issues, adapt security required for the business model of
to technological innovations suiting the business the Company.
model.
Gender, ethnic, national, Representation of gender, ethnic, geographic, cultural, All the Directors understand the need
or other diversity or other perspectives that expand the Board’s and importance of diverse skills for the
understanding of the needs and viewpoints of our betterment of stakeholders.
customers, partners, employees, governments, and
other stakeholders.

102
 Statutory Reports | Annual Report 2018-19

(vi) Number of Directorships and Memberships in Committees etc. as on March 31, 2019.

None of the Directors hold office in more than ten Public Companies in terms of Sec 165 of Companies Act, 2013. All Directors
are also in compliance with the limit of Independent Directorships of listed companies as prescribed under Regulation 17A of
the Listing Regulations. None of the Directors on the Board is a member of more than ten Committees or Chairperson of five
Committees (Committees being Audit Committee and Stakeholders Relationship Committee) across all the listed entities in which
he/she is a Director[Reg.26 of the said regulations]. Necessary disclosures regarding their Committee positions have been made
by all the Directors.

The details of the Board of Directors in terms of their directorships held in listed companies, category of directorship and their
memberships/ Chairmanships in Audit Committee (AC) and Stakeholders Relationship Committee (SRC) are as under:

Total *Membership
Chairperson
Directorships of AC & SRC in
of AC & SRC
in Listed Name of the Listed Category of public limited
Name of the Director Committees
Companies Companies Directorship companies
in public
(including (including
companies
CFHL) CFHL)
Smt Bharati Rao, 4 Can Fin Homes Limited Independent Non-
Chairperson (Independent) Executive
Cholamandam Independent Non-
Investment & Finance Executive
Company Limited 6 1
Carborundum Independent Non-
Universal Limited Executive
Neuland Laboratories Independent Non-
Limited Executive
Shri S K Hota, 1 Can Fin Homes Limited Promoter & Executive 1 Nil
Managing Director
Shri Debashish Mukherjee 2 Can Fin Homes Limited Promoter & Non- 1 Nil
Executive
Canara Bank Executive Director
Shri G Naganathan, FCA 1 Can Fin Homes Limited Independent Non- 2 1
Executive
Shri Shreekant M Bhandiwad 1 Can Fin Homes Limited Promoter & Executive Nil Nil
Dr. Yeluri Vijayanand 1 Can Fin Homes Limited Independent Non- 2 1
Executive
Shri S Subramanian 1 Can Fin Homes Limited Promoter & Non- 1 Nil
Executive
*Total membership includes Chairmanship.
- Smt Bharati Rao (Independent Non-Executive Director), has been elected on the Board of Suprajit Engineering Limited w.e.f April 01, 2019.

103
Can Fin Homes Ltd

(vii) Number of meetings of Board of Directors of Board evaluation and facilitating Independent Directors
to perform their role effectively; evaluation of management’s
The Board meets at least once in a quarter to review the quarterly performance and feedback, independence of management
performance and financial results of the Company. Apart from from the Board, access of Board and management to each
the scheduled Board Meetings, additional Board Meetings are other, succession plan and professional development;
also convened to ensure smooth operations of the Company. degree of fulfilment of key responsibilities, establishment and
delineation of responsibilities to Committees, effectiveness of
The agenda, Board notes, including explanatory notes are
Board processes, information and functioning and quality of
circulated to all the directors well in advance. Depending upon
relationship between the Board and Management.
the need, executives of the Company and senior management
are invited to the meetings of the Board to provide Criteria for evaluation of individual Directors include aspects
additional inputs/ clarifications on the subject being discussed such as professional qualifications, prior experience, especially
by the Board. experience relevant to the Company, sufficient knowledge,
skills and competency, fulfilment of functions, ability to function
The decisions taken on the agenda are promptly communicated
as a team, initiative, availability and attendance, commitment,
to the concerned departments. The Action Taken Report (ATR)
contribution, integrity (including conflict of interest disclosures,
on the decisions of the previous meetings is placed at the
maintenance of confidentiality, etc.), independence, guidance
succeeding meeting of the Board for review/noting. A similar
and support to management. In addition, the Chairperson
procedure is followed for each meeting of the Board committees.
is also evaluated on key aspects of his/her role, including
The Board of Directors of your Company met 10 times during effectiveness of leadership, professionalism and ability to steer
the FY18-19: April 28, 2018, June 2, 2018, July 30, 2018, August meetings, impartiality, ability to keep shareholders’ interests in
29, 2018, October 6, 2018, October 22, 2018, November mind and effectiveness as Chairperson.
13, 2018, January 23, 2019, March 12, 2019 and March 29,
Criteria for evaluation of the Committees of the Board include
2019. The Board met on April 30, 2019 to approve the annual
mandate of the Committee, structure and composition;
audited financial results of the Company for the year ended
effectiveness of the Committee; regularity and frequency
March 31, 2019.
of meetings, agenda, discussion and dissent, recording of
The maximum interval between two meetings did not exceed minutes and dissemination of information; independence of
the prescribed period of 120 days. the Committee from the Board; contribution to decisions of the
Board; effectiveness of meetings and quality of relationship of
(viii) Board and Directors Evaluation and Criteria for the Committee with the Board and KMP’s.
Evaluation
(ix) Independent Directors
During the year, the Board carried out an annual evaluation
of its own performance and the performance of individual Independent Directors play a key role in the decision-making
Directors as well as evaluation of Committees of the Board. process of the Board. They are committed to act in what
Your Company has framed the evaluation formats considering they believe are in the best interests of the Company and
the ‘Guidance Note on Board Evaluation’ prescribed by SEBI. oversee the performance of the management periodically.
The Company and its Board benefits immensely from the in-
The Nomination, Remuneration and HR Committee (NRC) has depth knowledge, experience and expertise of its Independent
defined the evaluation criteria, procedure and time schedule Directors in achieving its desired level of business performance
for the Performance Evaluation process for the Board, its and good corporate governance.
Committees and Directors. The criteria for Board Evaluation
include inter-alia, structure of the Board, qualifications, The terms & conditions of their appointment are disclosed on
experience and competence of Directors, diversity in Board the Company’s website.
and process of appointment; meetings of the Board, including
The Independent Directors have given a declaration to the
regularity and frequency, agenda, discussion and dissent,
Company as on March 31, 2019 confirming adherence to the
recording of minutes and dissemination of information; functions
code of conduct/ criteria of independence, directorships, etc. The
of the Board, including strategy and performance evaluation,
Company has in place the evaluation criteria for performance
corporate culture and values, governance and compliance,
evaluation of Independent Directors wherein their preparation,
evaluation of risks, grievance redressal for investors,
deliberations, effective participation, skills and knowledge to
stakeholder value and responsibility, conflict of interest, review

104
 Statutory Reports | Annual Report 2018-19

discharge their duties as Independent Directors, etc. are rated During the financial year, the Board of Directors has also appointed
by all the Directors (excluding the Director being evaluated). Shri Debashish Mukherjee (DIN: 08193978), Executive Director of
Canara Bank, as an Additional Director (Non-executive Promoter)
Based on the disclosures received from all independent directors on the Board of the Company w.e.f. March 12, 2019 pursuant to
and also in the opinion of the Board, the independent directors Sections 152, 160, 161, and all other applicable provisions of the
fulfill the conditions specified in the Companies Act, 2013, the Companies Act, 2013 and related rules.
Listing Regulations and HFC’s Corporate Governance (NHB)
Directions, 2016 and are independent of the Management. Pursuant to the provisions of the Companies Act, 2013, Shri
Shreekant M Bhandiwad, Director of the Company is retiring
As per Regulations 25(10) of SEBI (LODR) Amendments by rotation at the ensuing Annual General Meeting and being
Regulations, 2018, the Company has undertaken Directors and eligible, offers himself for re-appointment. Shri Shreekant
Officers Insurance (D&O insurance) for all Directors including M Bhandiwad, is the whole time Director of the Company
independent directors of such quantum and for such risks as designated as Deputy Managing Director since April 28, 2018.
may be determined by its board of directors.
The tenure of Shri G Naganathan is due to be completed on
Meeting of Independent Directors: the conclusion of the ensuing Annual General Meeting of the
Company. The Board has approved his re-appointment for a
Separate meeting of Independent Directors of the Company,
further tenure of three years until the conclusion of AGM of the
without the presence of the Executive Directors & the
Financial Year 2021-22.
management representatives, was held on March 11, 2019, as
required under Schedule IV to the Act (Code for Independent The tenure of Shri S K Hota, Managing Director is extended by
Directors) and Regulation 25(3) of the listing regulations. Canara Bank upto October 5, 2019. The Board has approved
Independent Directors meeting was also held on March 15, for re-appointment of Shri S K Hota, Managing Director for the
2019 and March 16, 2019. said further tenure.

The Independent Directors at their meeting have reviewed, Brief profiles of all the Directors are provided in page 20 to 22
inter-alia, the performance of the Board as a whole, the of this Annual Report.
Committees, the Managing Director, the non-independent
directors and the Chairperson. They also assess the quality, Agenda relating to the appointment of Dr. Yeluri Vijayanand as
quantity and timeliness of the flow of information from the Independent Director, appointment of Shri Debashish Mukherjee
Management to the Board. The evaluation formats of the and Shri S Subramanian as Directors liable to retire by rotation
Board, Committees and directors are prepared considering the and re-appointment of Shri G Naganthan as an Independent
guidance note on Board Evaluation vide SEBI Circular No.SEBI/ Director, Shri S M Bhandiwad as a Director (Whole-time
HO/CFD/ CMD/P/2017/004 dated January 05, 2017. Director)and extension of tenure of Shri S K Hota, Managing
Director are forming part of the Notice of the ensuing Annual
(x) Appointment/ re-appointment/ resignation of Directors General Meeting. The further particulars of their Directorships
are provided in the explanatory statement forming part of the
Appointment/ re-appointment
Notice of the ensuing AGM. All the above appointments and re-
The Board of Directors, has appointed Dr. Yeluri Vijayanand appointments are recommended by Nomination Remuneration
(DIN: 00594503) as an Additional Director w.e.f. August 29, & HR Committee and by the Board of Directors.
2018 for a tenure of 3 years upto the conclusion of the Annual
All the Directors have filed their consents and declarations as
General Meeting of the Company for the financial year 2020-
required under the provisions of Companies Act, 2013, SEBI
21 pursuant to Section 149, 161 and all other applicable
(LODR) Regulations, 2015 and HFCs Corporate Governance
provisions of Companies Act, 2013 and Regulation 17 of SEBI
(NHB) Directions, 2016.
(LODR) Regulations, 2015.
Resignation/ retirement/ completion of tenure
The Board of Directors has appointed Shri Shankara Narayanan
Subramanian (S Subramanian) (DIN: 07901414), General The tenure of the Office of Shri K N Prithviraj, the Non-
Manager of Canara Bank, as an Additional Director (Non-executive Executive Independent Director and Chairperson of the Board,
Promoter) on the Board of the Company w.e.f. October 06, 2018 and Shri T V Rao, the Non-Executive Independent Director of
pursuant to Sections 152, 160, 161, and all other applicable the Company was completed on conclusion of the 31st Annual
provisions of the Companies Act, 2013 and related rules.

105
Can Fin Homes Ltd

General Meeting of the Company held on July 18, 2018. Hence, The Board has empowered the senior management to
ceased to be the director of the Company. implement its broad policies and guidelines including the
succession plan for senior management and has set up
Shri S A Kadur, Director (General Manager, Canara Bank) adequate review mechanisms and processes.
has laid down his Office on attainment of superannuation
w.e.f September 30, 2018. In pursuance of the same, he has The Nomination Remuneration and HR Policy, Related Party
tendered his resignation as Director of the Company and hence Transaction Policy, Code of Fair Disclosure, Familiarisation
ceased to be the director of the Company w.e.f October 01, Policy, Corporate Governance Policy, Whistle blower Policy,
2018. Code of conduct for Directors/ Independent Directors, Policy on
Disclosure of material events, Policy on prohibition of Insider
Smt P V Bharathi, Director of the Company has resigned from the Trading, Archival Policy, Dividend Distribution Policy, etc. are
Board of the Company w.e.f. February 01, 2019, on her elevation displayed on the Company’s official website.
and appointment as the Managing Director & Chief Executive
Officer of Corporation Bank. (xii) Familiarisation Programme

(xi) Responsibilities of the Board The Company has in place a system of conducting the
familiarisation programme for Independent Directors, as
The Board discharges its duties and responsibilities as per which the Independent Directors were familiarised with
required under various statutes applicable to the Company their roles, rights, responsibilities, nature and the business
viz., the Companies Act, 2013, Guidelines/ Regulations/ model of the Company, etc. The said policy and the details of
Directions issued by the Securities Exchange Board of India the familiarisation programmes conducted during FY18-19
(SEBI), National Housing Bank (NHB), Insurance Regulatory are placed on the website of the Company at https://www.
& Development Authority of India (IRDAI) and such other canfinhomes.com/pdf/Familiarisation-Policy-120419.pdf.
Statutory and Regulatory Authorities, including reporting and
disclosures to be made to the shareholders. All Directors, including Independent Directors, on induction
will be apprised of the nature of industry and business model
The Board reviews the legal compliance reports on a quarterly of the Company and the roles, rights, responsibilities in terms
basis to ensure statutory/ regulatory compliances and also the of Companies Act and related rules, SEBI LODR Regulations
steps taken for rectifying the instances of delayed compliances etc. Presentations on risk profile and risk management of the
or non-compliances, if any. Company, internal and external audit plans, business and
financial performance, updates on compliances, regulatory
The Board mainly oversees the Company’s strategic direction,
scenario and regulatory/ statutory changes which affect/
annual operating plans and budgets, capital budgets,
concern the Company, Company policies, internal controls,
financial results, minutes of the meetings of the committees,
investor relations etc. were made at the various Committee/
materially important notices, if any, compliance of regulatory
Board Meetings of the Company.
and statutory requirements, performance review, assessment
of the adequacy of risk- management and possible steps for Further, the Company also makes periodic presentations at
mitigation of risks, assets and liabilities management, liquidity the Board and Committee meetings on various aspects of the
monitoring strategic investments and safeguarding the Company’s operations, performance updates of the Company,
interests of all stakeholders. Industry scenario, business strategy, internal control and risks
involved and mitigation plan.
The Board performs all its key functions and discharges
its duties and responsibilities, as required under the SEBI (xiii) Code of Conduct
regulations, Companies Act, NHB Directions and such other
laws as applicable. For the year under review, all the Directors and Senior
Management Personnel have affirmed compliance with
The Board has laid down the code of conduct for all its members, the provisions of their Code of Conduct. A declaration from
including independent directors and Senior Management the Managing Director/ CEO of the Company is placed as
personnel of the Company. It also evaluates the Independent Annexure-1 to this Report.
Directors including the performance and fulfillment of criteria
of independence.

106
 Statutory Reports | Annual Report 2018-19

In terms of the Code of Conduct of Independent Directors as per control before submission to the Board for approval, reviews
Schedule IV of the Companies Act, 2013, the Board has adopted and monitors the auditor’s independence and performance
the said Code and all the Independent Directors have affirmed and effectiveness of audit process.
that they shall abide by the said Code. The Code of Conduct of
Board of Directors, Independent Directors and Management The Audit Committee also reviews the matters required to
Personnel are made available in the Company’s official website. be included in the Directors’ Responsibility Statement, to be
included in the Board’s report in terms of section 134(3)(c) of the
In terms of the HFCs Corporate Governance (NHB) Directions, Companies Act, 2013; Changes, if any, in accounting policies
2016, all the Directors have executed the Declarations-cum- and practices and reasons for the same; Major accounting
undertakings as well as the Deed of Covenants with the Company. entries involving estimates based on the exercise of judgement
by management; Adjustments, if any, made in the financial
statements arising out of audit findings; Statement of uses /
3. Committees of the Board
application of funds raised to ensure that the funds are utilized
The Board has constituted seven Committees as of date viz. for purposes stated in the offer document; It also reviews
Audit Committee, Nomination Remuneration & HR Committee, the compliances with listing and other legal requirements
Stakeholders’ Relationship Committee, Corporate Social relating to financial statements; Disclosure of any related
Responsibility Committee, Risk Management Committee, party transactions; Opinion(s) in the draft audit report, if any;
Management Committee and IT Strategy Committee. In order Scrutiny of inter-corporate loans and investments; Valuation
to have a more focussed attention, the Board has delegated of undertakings or assets of the Company wherever it is
certain matters to the committees constituted by the Board with necessary; Evaluation of Internal Financial Controls and Risk
an outlined role, responsibility and with appropriate authority. Management systems; Reviewing, with the management,
The minutes of the meetings of all the committees are placed performance of Statutory and Internal auditors, adequacy
before the subsequent meeting of the Board for information. of the Internal Control Systems; Reviewing the adequacy of
Internal Audit function; Discussion with the Internal Auditors
(i) Audit Committee (AC) of any significant findings and follow up thereon; Review the
functioning of the Whistle Blower Mechanism; Review the
The Audit Committee has been constituted by the Board
annual statement of funds utilized for purposes other than
in compliance with the requirements of Section 177 of the
those stated in the offer document/prospectus/notice, certified
Act and Regulation 18 of the SEBI (LODR) Regulations. The
by the statutory auditors of the Company, till such time the full
qualified and independent Audit Committee of the Board has
money raised through the issue has been fully utilized; Carrying
been exercising its powers and responsibilities judiciously.
out any other function as is mentioned in the terms of reference
The Committee has four experienced and learned members
of the Audit Committee.
of which three members including the Chairperson of the
Committee, are Independent Directors. (b) Internal Audit

(a) Brief description of terms of reference The Company has adequate internal control and Internal Audit
System commensurate with the size and nature of its business.
The terms of reference of the Audit Committee inter-alia
The internal audit plan is approved by the Audit Committee and
include:
the Internal Audit Report is presented to the Audit Committee
Oversight of the Company’s financial reporting process for their consideration.
and the disclosure of its financial information to ensure that
(c) Composition of the Audit Committee and other details:
the financial statements are correct, sufficient and credible;
recommendation for appointment, remuneration and terms of During the year the Audit Committee met 5 times - on April 27,
appointment of auditors of the Company; recommendations 2018, July 30, 2018, October 22, 2018, January 23, 2019 and
for fixation of fee to statutory auditors for their services; March 11, 2019. The maximum interval between two meetings
reviews, with the management, the quarterly and annual did not exceed 120 days as prescribed under Companies Act,
financial statements and limited review/ auditor’s report 2013 and Regulation 18 of SEBI (LODR) Regulations, 2015.
thereon including report on adequacy of internal financial During the year, all recommendations of the Audit Committee
have been accepted by the Board of Directors.

107
Can Fin Homes Ltd

The particulars of members of the Committee, number of meetings attended/held during the tenure of a particular director,
attendance and the sitting fee paid are mentioned hereunder:

Composition of the Audit Committee and other details:

Number of meetings attended/ Sitting Fees

Members
held during the year Paid (J)
Shri G Naganathan, FCA, Chairperson (Independent Non-Executive) 5/5 70,000
Smt Bharati Rao, Member (Independent Non-Executive) 5/5 60,000
Dr. Yeluri Vijayanand, Member (Independent Non-Executive)* 3/3 40,000
Shri S Subramanian, Member (Promoter Non-Executive)@ 2/3 25,000#
Shri S A Kadur ^ 1/2 10,000#
Shri T V Rao$ 1/1 10,000
* Appointed w.e.f August 29, 2018.
@ Apppointed w.e.f October 06, 2018.
# Sitting fee paid to Canara Bank.
^ Shri S A Kadur (DIN:06426985), Director (General Manager, Canara Bank) has laid down his Office on attainment of superannuation w.e.f September 30,
2018.
$ Shri T V Rao (DIN:05273533) was the member of the Audit Committee till July 18, 2018 as his tenure of the Office was completed on conclusion of the
31st Annual General Meeting of the Company held on July 18, 2018.

Shri G Naganathan, FCA, the Chairperson of the Committee The NRC also reviews the HR matters. The NRC reviews
was present at the 31st Annual General Meeting of the the information, declarations and undertakings given by the
Company and answered shareholder’s queries. existing and proposed Director(s) giving additional information
in the prescribed format in terms of `Housing Finance
The Company Secretary is the Secretary to the Audit Committee. Companies – Corporate Governance (National Housing Bank)
Directions, 2016’. The NRC also ensures that the deeds of
(ii) Nomination Remuneration and HR Committee (NRC)
covenants are signed by the Directors in the format prescribed.
(a) Brief description of terms of reference:
The Nomination Remuneration and HR Policy of the Company
The Nomination, Remuneration & HR Committee constituted by is available on the website of the Company https://www.
the Board in compliance with the requirements of Section 178 canfinhomes.com/pdf/Nomination-Remuneration-and-HR-
of the Companies Act and Regulation 19 of the SEBI (LODR) Policy-120419.pdf.
Regulations, comprise four Non-Executive Directors, of which
Nomination policy, among other things, includes:
three including the Chairperson are Independent Directors.
The Board has authorised the Committee with clear roles and i) Laying down the criteria which shall form the basis
responsibilities in terms of the provisions of the Companies for enabling the Nomination Remuneration and HR
Act and rules made thereunder and also with those set out Committee to identify persons who are qualified to
in the SEBI (LODR) Regulations, 2015 and HFCs Corporate become Directors of the Company, including Board
Governance (NHB) Directions, 2016, as amended from time to Diversity. As per the Policy, the formulation of such criteria
time. The Nomination and Remuneration policy of the Company, shall be aimed at determining qualifications, expertise,
duly approved by the Board, covers the criteria for determining track record, integrity, positive attributes, independence of
qualifications, positive attributes and independence of a a Director and other `fit and proper’ criteria at the time of
Director, evaluation of Independent Directors and the Board, appointment and on a continuing basis.
authorisation to identify persons who are qualified to become
Directors, and who may be appointed in senior management, ii) Laying down the criteria which shall form the basis for
recommending to the Board their appointment/removal, all enabling the Nomination Remuneration and HR committee
remuneration, in whatever form, payable to senior management to identify persons who may be appointed in the Senior
and also the remuneration policy. Management of the Company.
108
 Statutory Reports | Annual Report 2018-19

iii) Evaluation of every Director’s performance by NRC.

The Remuneration policy, among other things, covers:

I. Remuneration for the Directors, Key Managerial Personnel and other employees of the Company.

II. The Remuneration to the employees of CFHL including the Senior Management Personnel in the form of incentives, performance-
based incentives, viz. cash incentive, employee stock option scheme, ex-gratia, etc. either fixed or variable in nature, subject to
statutory guidelines and Staff Service Regulations/ HR policies approved by the Board.

(b) Composition of the NRC Committee and other details :

During the year the NRC Committee met 10 times on April 28, 2018, June 13, 2018, August 18, 2018, September 17, 2018, October 06,
2018, November 13, 2018, January 23, 2019, February 09, 2019, February 15, 2019 and March 29, 2019. The particulars of members of
the Committee, number of meetings attended/ held during the tenure of a particular director attendance of the members at the meetings
and the sitting fee paid are mentioned here under;

Number of meetings attended/held Sitting Fees

Members
during the tenure of the member Paid (J)
Dr. Yeluri Vijayanand, Chairperson (Independent Non-Executive)* 7/7 1,10,000
Smt Bharati Rao, Member (Independent Non-Executive) 9/10 1,10,000
Shri G Naganathan, Member (Independent Non-Executive) 10/10 1,20,000
Shri Debashish Mukherjee, Member(Promoter Non-Executive)** -/1 Nil
Smt P V Bharathi 7/7 75,000#
Shri T V Rao 2/2 20,000
* Appointed w.e.f August 29, 2018.
** Appointed w.e.f March 12, 2019.
# Sitting fee paid to Canara Bank.
- Smt Bharati Rao was the Chairperson of Nomination Remuneration & HR Committee till the conclusion of the 31st Annual General Meeting of the
Company held on July 18, 2018.
- Smt P V Bharathi (DIN: 06519925), has resigned from the Board of our Company w.e.f. February 01, 2019, on her elevation and appointment as the
Managing Director & Chief Executive Officer of Corporation Bank.
- Shri T V Rao (DIN:05273533) was the member of the NRC Committee till July 18, 2018 as his tenure of the Office was completed on conclusion of the
31st Annual General Meeting of the Company held on July 18, 2018.

(c) Performance evaluation criteria for independent directors: (d) Remuneration of Directors

The criteria for performance evaluation cover the areas For the financial year ended March 31, 2019, except for the
relevant to the functioning as Independent Directors such as Managing Director and Dy. Managing Director, there were
preparation, participation, conduct and effectiveness. The no other Executive Directors on the Board of the Company.
performance evaluation of Independent Directors was done by The remuneration paid to the Managing Director and Dy.
the entire Board and in the evaluation process, the Directors Managing Director was as approved by the members at the
who are subject to evaluation had not participated. Annual General Meeting of the Company held in 2017 and
2018 respectively and the same were as per the Staff Service
The Company Secretary is the Secretary to the Nomination
Regulations of Canara Bank as amended from time to time,
Remuneration and HR Committee.
within the limits prescribed under Schedule V of Companies
Act, 2013.

109
Can Fin Homes Ltd

The non-executive directors are eligible to receive sitting fee Chairperson of the Board or Committee. No other remuneration
for attending the meetings and reimbursement of any out-of is being paid to them.
pocket expenses towards Boarding and lodging and transport/
conveyance etc. incurred, if any, for attending the meeting(s). The Non-Executive Independent Directors of the Company
None of the Non-Executive Directors has any other material have declared that they meet the criteria of independence as
pecuniary relationship or transactions with the Company, its provided under section 149(6) of the Companies Act, 2013 and
Promoters or its Directors or its Senior Management. that they will abide by the provisions specified in Schedule IV
of the said Act.
Disclosures with respect to remuneration of executive Directors
[In terms of Schedule V of SEBI (LODR) Regulations, 2015]: (iii) Stakeholders’ Relationship Committee (SRC)

(i) All elements of remuneration package of individual (a) Brief description of terms of reference:
directors are summarised under major groups, such as
The terms of reference of the committee inter alia include
salary, benefits, bonus, pension etc.
review mechanism adopted by the Company for redressing
Managing Director - Shri S K Hota: The remuneration the shareholder’s complaints and review of the status of
package for FY19 includes; Salary H17,95,544/-; complaints of the stakeholders, if any.
Incentive – H3,60,083/-; Provident Fund – H1,01,364/-.
The Stakeholders Relationship Committee has been
Dy. Managing Director - Shri Shreekant M Bhandiwad: constituted by the Board in compliance with the requirements
The remuneration package for FY19 includes; Salary – of section 178 (5) of the Act and Regulation 20 of the SEBI
H15,29,621/-; Incentive – H3,06,066/-; Provident Fund – (LODR) Regulations.
H86,117/-
This Committee reviews/approves processes, standard
(ii) Details of fixed component and performance linked operating procedures and initiatives undertaken by the
incentives, alongwith the performance criteria: The Company relating to investor service, compliances with
performance linked incentive given to the executive requirements related to SEBI (LODR) Regulations, 2015 and
directors for FY19 was H6,66,149/-. The criteria includes Corporate Governance, shareholding pattern, periodical
Qualitative and Quantitative parameters. transfers/transmissions of shares, de-materialisation and
re-materialisation of shares, issue of duplicate certificates of
Quantitative: Fresh approvals, Disbursements, growth in
the securities issued by the Company, review of the status of
loan book, NHL and Deposits, Gross NPAs, PAT, NIM, ROA
redressal of complaints, if any, lodged with authorities including
& ROE.
SEBI, Registrar of Companies, etc. by the stakeholders, for
Qualitative: Leadership & brand building, HR, IT initiatives, reasons including non-receipt of dividends, Annual Reports
Customer Centricity, Adherence to KYC/AML guidelines, etc., steps taken by the Company for settlement of unclaimed
Prevention/ Detection of frauds, Quality of compliance of dividends, Compliance with the applicable provisions of the
Inspection and Audit Reports. Companies Act, 2013 and various other statutes.

(iii) Service contracts, notice period, severance fee: Not It has been noted that the shareholding in dematerialized
applicable. mode as on March 31, 2019 was 98.21% (97.67% as of March
31, 2018).
(iv) Stock option details, if any, and whether issued at a
discount as well as the period over which accrued and (b) Composition of the Stakeholders’ Relationship
over which exercisable: Not applicable Committee and other details:

(e) Remuneration of Non- Executive Directors During the year, the Stakeholders’ Relationship Committee
The Non-Executive Directors of the Company were paid only met 4 times, viz. April 27, 2018, July 30, 2018, October 22,
the sitting fee of H10,000/- for Committees and H20,000/- for 2018 and January 23, 2019. The particulars of members of
Board. Sitting fee has been revised with effect from January the Committee, number of meetings attended/held during the
23, 2019 i.e., H15,000 for meetings of Committees and H30,000 tenure of a particular director, attendance of the members at
for meetings of Board and Chairing fee of H5,000 to the the meetings and the sitting fee paid are mentioned hereunder:

110
 Statutory Reports | Annual Report 2018-19

Number of meetings
Sitting Fees
Members attended/held during the
Paid (J)
tenure of the member
Dr. Yeluri Vijayanand, Chairperson (Independent Non-Executive)* 2/2 30,000
Shri S K Hota, Member (Managing Director) 4/4 NA
Shri G Naganathan, FCA, Member (Independent Non-Executive) 4/4 45,000
Smt Bharati Rao, Member (Independent Non-Executive) 4/4 45,000
Shri T V Rao^ 1/1 10,000
* Appointed w.e.f August 29, 2018.
^ Shri T V Rao (DIN:05273533) was the Chairperson of the SRC Committee till July 18, 2018 as his tenure of the Office was completed on conclusion of the
31st Annual General Meeting of the Company held on July 18, 2018.

The Company Secretary is the Secretary to the Committee.

There were no complaints pending at SEBI SCORES as at the beginning of the financial year and during the year 2 complaints were
received and both the complaints stand resolved as at the end of the financial year ended March 31, 2019.

Shareholders Grievances/ Representations Statistics

Complaints/ Representations received related to non-receipt of Annual Reports/ dividend/ Split share 158
certificate etc
Complaints not solved to the satisfaction of shareholders Nil
Pending Complaints Nil
Pending Representations 1*
* Representation relates to issue of split-share certificate.

(iv) Corporate Social Responsibility Committee

The Corporate Social Responsibility (CSR) Committee has been constituted by the Board in compliance with the requirements of
Section 135 of the Companies Act.

During the year, the Corporate Social Responsibility (CSR) Committee met 3 times on August 29, 2018, September 17, 2018 and
November 13, 2018. The particulars of members of the Committee, number of meetings attended/held during the tenure of a
particular Director, attendance of the members at the meetings and the sitting fee paid are mentioned hereunder:

Number of meetings attended/held Sitting Fees

Members
during the tenure of the member Paid (J)
Smt Bharati Rao, Chairperson (Independent Non-Executive) 2/3 20,000
Shri S K Hota, Member (Managing Director) 3/3 NA
Shri G Naganathan, FCA, Member (Independent Non-Executive) 3/3 30,000
Shri Shreekant M Bhandiwad, Member (Dy. Managing Director) 3/3 NA

The Company Secretary is the Secretary to the Committee. skills especially among children. The other areas of focus are
healthcare sector, conservation of Solar energy and ecological
The Company has focussed in promoting education including
balance providing food and nutrition to children etc. During
special education and employment in enhancing vocation
the year the Company also worked in the environmental

111
Can Fin Homes Ltd

sustainability by planting trees/ saplings and distribution of management of credit risk, market risk, operational risk, asset
20,000 cotton bags. liability management, compliance risk, etc. The Committee will
also review all the policies of the Company and risk profile of
Other information relating to the particulars on spending in the Company at periodical intervals. Thereafter, the same will
terms of the Corporate Social Responsibility Policy and reasons be recommended to the Board for review/ approval.
for not spending/ carrying forward the balance amount,
if any, during the current year are disclosed in a separate The Committee meets at periodical intervals and reviews the
key risks associated with the business of the Company, causes
report annexed to the Report of Directors, forming part of this
and efficacy of the measures taken to mitigate the same and
Annual Report.
apprises the Board of Directors.
(v) Risk Management Committee (RMC) Further, the Audit Committee and the Board of Directors review
the key risks associated with the business of the Company,
The Risk Management Committee (RMC) of the Company is
the procedures are in place to assess the risks and the
constituted in line with the provisions of Regulation 21 of the
mitigation mechanisms.
SEBI (LODR) Regulations. The Risk Management Committee
comprise four members – three Directors and a senior During the year the Risk Management Committee met 3 times
management executive. The Risk Management Policy defines - on June 01, 2018, August 18, 2018 and January 23, 2019.
the role and responsibilities of the Committee and delegation
of appropriate authority. The particulars of members of the Committee, number of
meetings attended/held during the tenure of a particular
The terms of reference to the Committee include overall director, attendance of the members at the meetings and the
responsibility to monitor and manage enterprise-wide risk sitting fee paid are mentioned hereunder:
i.e., overall risk in the Company. The Committee reviews
and monitors the overall risk management framework for

Number of meetings attended/held Sitting Fees

Members
during the tenure of the member Paid (J)
Shri Debashish Mukherjee, Chairperson (Promoter, Non-Executive) - NIL
Smt Bharati Rao, Member (Independent Non-Executive) 3/3 35,000
Shri Shreekant M Bhandiwad, Member (Dy. Managing Director) 3/3 NA
Smt Shamila M, Member (General Manager) 3/3 NA
Smt P V Bharathi^ 3/3 40,000#
Shri T V Rao* 1/1 10,000
^ Smt P V Bharathi (DIN 06519925), Non-executive Promoter Director of our Company was the Chairperson of RMC Committee, has resigned from the
Board of our Company w.e.f. February 01, 2019, on her elevation and appointment as the Managing Director & Chief Executive Officer of Corporation
Bank.
* The tenure of the Office of Shri T V Rao (DIN:05273533), the Non-Executive Independent Director of the Company was completed on conclusion of the
31st Annual General Meeting of the Company held on July 18, 2018.
# Sitting fee paid to Canara Bank.

The Company Secretary is the Secretary to the Committee.

(vi) Management Committee (MC)

The Management Committee of the Board considers the proposals for sanction of loans to individuals/ builders, rates of interest
on such loans, terms and conditions for sanction and certain other financial sanctions, related assignments in terms of the powers
delegated to the Committee by the Board.

During the year the Management Committee met on April 04, 2018 and May 28, 2018. The particulars of members of the Committee,
number of meetings attended by them/held during their tenure of membership and the sitting fee paid are mentioned hereunder:

112
 Statutory Reports | Annual Report 2018-19

Number of meetings attended/held Sitting Fees

Members
during the tenure of the member Paid (H)
Shri S K Hota, Chairperson (Managing Director) 2/2 NA
Shri T V Rao^ 2/2 20,000
Shri S A Kadur$ 2/2 20,000#
Shri Shreekant M Bhandiwad, Member (Dy. Managing Director) 1/1 NA
Smt Bharati Rao, Member (Independent) - NIL
Shri S Subramanian, Member (Promoter)* - NIL
# Sitting fee paid to Canara Bank.
^ The tenure of the Office of Shri T V Rao (DIN:05273533), the Non-Executive Independent Director of the Company was also completed on conclusion of
the 31st Annual General Meeting of the Company held on July 18, 2018.
$ Shri S A Kadur (DIN:06426985), Director (General Manager, Canara Bank) has laid down his Office on attainment of superannuation w.e.f September 30,
2018. In pursuance of the same, he has tendered his resignation as Director (Non-executive Promoter Director) of our Company, which was received on
October 01, 2018.
* Apppointed w.e.f October 06, 2018.

The Company Secretary is the Secretary to the Management Committee.

(vii) IT Strategy Committee

The Board has constituted IT Strategy Committee as per NHB guidelines NHB(ND)/DRS/Policy Circular No.90/ 2017-18. The
Committee conducts gap analysis between their current IT framework and stipulations as laid out in the specified circular and to
review and amend/ frame IT strategies as and when required. During the year the IT Strategy Committee met on October 21, 2018,
January 07, 2019 and March 11, 2019.

The particulars of members of the Committee, number of meetings attended by them/held during their tenure of membership and
the sitting fee paid are mentioned hereunder:
Number of meetings attended/held Sitting Fees
Members
during the tenure of the member Paid (J)
Shri G Naganathan, FCA, Chairperson (Independent Non-Executive) 3/3 40,000
Shri Shreekant M Bhandiwad, Member (Dy. Managing Director) 3/3 NA
Smt Shamila M, General Manager 3/3 NA
Shri Sikhin Tanu Shaw, AGM IT 3/3 NA

The Audit Committee, the Nomination & Remuneration Auditors and such other professionals with relevant expertise,
Committee, the Stakeholders’ Relationship Committee, to attend the meetings and provide clarifications on certain
Corporate Social Responsibility Committee and IT Strategy specific issues, if any.
Committee are chaired by Independent Directors.
The dates of meetings of the above Committees are decided in
The Independent Directors are not paid any fee/remuneration consultation with the Chairperson of the respective Committees
apart from the sitting fee for attending the meetings. and intimated to its members in advance. The agenda papers
are prepared in advance and circulated among the members
Depending upon the need, the Committees invite the Senior of the Committees.
Management Personnel/ Functional Heads, Statutory Auditors/
Branch Auditors of the Company, Tax Consultant, Internal

113
Can Fin Homes Ltd

4. General body meetings/ postal ballots

The details of annual general meetings held during the last three years are as follows:

Year ended Date and Time Venue

March 31, 2018 Wednesday, July 18, 2018 at 11:00 AM NIMHANS Convention Centre, Opp.
Lakkasandra Bus Stop, Hosur Road,
Bengaluru, Karnataka, 560029
March 31, 2017 Wednesday, June 28, 2017 at 11:00 AM J.S.S. Shivarathreeswara Centre
Auditorium
1st Main, 8th Block, Jayanagar,
Bengaluru, Karnataka, 560082
March 31, 2016 Wednesday, July 20, 2016 at 11:00 AM Same as above

Special Resolutions passed at the previous three Annual General Meetings:

2018 1. To borrow amounts not exceeding H20,000 Crore.

2. Offer or invitation for subscription for Non-Convertible Debentures (NCD) or bonds, secured or unsecured,
of any nature upto an amount of H6000 Crore on private placement.
3. Further issue of shares/ specified securities.
2017 1. Re-appointment of Shri Thallapaka Venkateswara Rao (T V Rao), Independent Director
2. Re-appointment of Shri Kokkarne Natarajan Prithviraj (K N Prithviraj), Independent Director
3. Increasing the borrowing powers of the Board of Directors of the Company from H16,000 Crore to H20,000
Crore.
4. Offer or invitation for subscription for Non-Convertible Debentures (NCD) aggregating to H6,000 Crore on
private placement.
2016 1. Increasing the borrowing powers of the Board of Directors of the Company from H14,000 Crore to H16,000
Crore.
2. Offer or invitation for subscription for Non-Convertible Debentures (NCD) aggregating to H3,000 Crore on
private placement.

Postal ballot

1. Details of Special Resolutions passed through Postal Ballot in the last year: NA

2. Person who conducted the postal ballot exercise: NA

3. Whether any Special Resolution is proposed to be conducted through postal ballot: No resolution is proposed to be conducted
through Postal Ballot as on the date of AGM.

4. Procedure for Postal Ballot: Your Company follows the provisions of the Companies Act, 2013 and Listing Regulations 2015 for
Postal Ballot, if any.

114
 Statutory Reports | Annual Report 2018-19

5. Means of Communication to the shareholders (e) Presentations made to Institutional Investors or to the
Analysts - The Managing Director, Deputy Managing
The Company has about 88,692 shareholders all over India as Director and the Chief Financial Officer generally interact
on March 31, 2019 as against 77,033 as on March 31, 2018. with the analysts/investors and provide clarifications on
the issues covered in the presentation, which is made
The means of communication to the shareholders includes;
available on the Company’s official website within the
(a) Quarterly Results - The Company, immediately after permissible disclosure norms. The Managing Director,
conclusion of the meetings of the Board of Directors, within Dy. Managing Director and the Chief Financial Officer
the prescribed time, uploads the quarterly/annual financial participate in the Conference calls arranged by reputed
results on the website “NEAPS” of National Stock Exchange Institutional Investors. Investors’ page on the website of the
of India Limited and “Listing Centre” of BSE Limited and Company - The ‘Investor Page’ (https://www.canfinhomes.
simultaneously uploads the same on the Company’s com/investor-presentation.aspx) provides quarterly results
website https://www.canfinhomes.com/ and presentation made by the Company covering pictorial
representation of the statistical data, annual performance
The Company also publishes the abridged version of compared, key ratios etc. The page also discloses the un-
audited/ unaudited financial results on a quarterly/annual audited results on a quarterly basis together with the limited
basis, in the prescribed format, in leading newspapers in review reports and the audited annual financial results,
English and in the regional language viz., Kannada, within annual reports, the shareholding pattern, unclaimed/unpaid
the prescribed period. dividend/deposits, Fair Practice Code, KYC guidelines,
nomination by members, ECS mandate, dematerialisation
(b) Newspapers where in results normally published - The of shares, SEBI circulars insisting for payments to
Company normally publishes the abridged version of members through electronic mode etc., complete details
audited/ unaudited financial results in leading newspapers about the Registrar and Transfer agents, details of the
in English viz., Business Line and/or Business Standard Compliance Officer etc. with select download facilities,
and/or Financial Express and in the Regional Language for the information and utility of the shareholders of the
i.e., Kannada in the newspapers viz., Kannada Prabha Company. The intimations relating to Institutional Investors
and/or Samyuktha Karnataka. or Analysts meet are informed to the stock exchange in
terms of regulation 30 of the SEBI regulations and similar
(c) Any website, where displayed - The Company displays
information is made available on the Company’s website
all the reports/ statements/ notices and such other
within the prescribed time as and when applicable.
documents as required/ applicable under the statutory
and regulatory requirements on the official website (f) Annual Report – The Annual Report encompasses the
of the Company https://www.canfinhomes.com/. The operational and financial highlights for the current year
Company has revamped its website w.e.f April 13, 2019. in comparison with previous years, Report of Directors,
The Company also uploads all such documents online on Report of the Directors on Corporate Governance,
http://www. connect2nse.com/listing/ and on http://www. Management Discussion and Analysis report and Audited
listing.bseindia.com/ for dissemination by National Stock Financial Statements together with the Auditors Report.
Exchange of India Limited and BSE Limited. The annual report also contains a section on `General
Information to Shareholders’ which inter-alia provides
(d) Official News releases - Dissemination of information
information relating to the date, time and venue of the
through television/press: The Managing Director provides
annual general meeting, shareholding pattern, distribution
brief information on quarterly/annual results, corporate
of shareholding, voting rights and the monthly high and
actions like rights issue etc. on TV channels and in print
low market price of equity shares during the year and other
media, within the permissible disclosure norms. The
information as required under the listing agreement(s) and
intimations of such press releases/television interviews
other related matters.
are informed to the stock exchange in terms of regulation
30 of the SEBI regulations and similar information is made
available on the Company’s website.

115
Can Fin Homes Ltd

(g) Stock Exchanges – The Company uploads/discloses 6. Other disclosures

all material information about the Company, including
shareholding pattern, report on corporate governance, (a) Materially significant related party transactions
reconciliation of share capital audit, status of investor’s
The Company has a policy in place on the Related Party
complaints, certificates from RTA, disclosure on related
Transactions. The policy defines clearly the transactions which
party transactions, annual secretarial compliance report,
require approval from Audit Committee, the Board of Directors
Debentures Trustees and intimations/disclosure of material
and members at the Annual General Meeting, provision
events etc. periodically to the National Stock Exchange of
for prior approval, periodical review, omnibus approval,
India Ltd. and BSE Limited.
transactions in the ordinary course of business or otherwise,
(h) Investor grievance redressal mechanism: The Company transactions within arm’s length basis or otherwise, materiality
has provided a separate e-mail ID for shareholders of the transactions as defined under Regulation 23 of the SEBI
services viz., investor.relationship@canfinhomes.com and (Listing Obligations & Disclosure Requirements) Regulations,
the Investor grievance redressal mechanism is in place. A 2015, as applicable, and threshold limits as defined and in
Grievance Redressal Portal has been enabled in the new conformity with the provisions of the Companies Act, 2013, the
website of the Company. related rules and the requirements under said regulations, as
amended from time to time. The Company has been entering
(i) Meetings: The principal forum for interaction/discussion into contracts and arrangements with the promoter and
with shareholders, be it individuals, corporates or foreign sponsor bank viz., Canara Bank since incorporation, in the
investors is the annual general meeting of the Company. ordinary course of business.

(j) Other information: The details relating to the director(s) The Company has been maintaining current accounts for
proposed to be appointed/re-appointed at the ensuing business transactions, availing Term Loans, Overdraft facilities,
Annual General Meeting are provided as an annexure to making payment of interest, placing short term/long term
the notice convening the said meeting. deposits to meet the statutory liquidity limits (SLR purpose)
and collecting/ recovering interest thereon, leasing out
In recognition of the initiative taken by the Ministry of
business or residential premises, if any, of the Company to the
Corporate Affairs (MCA), Government of India and as a
Bank on rent or occupy any business or residential premises
contribution towards a greener environment the Company
of the Bank on rent, paying bank charges to the Bank, borrow
has been sending all documents like General Meeting
by way of Commercial Papers, Non-convertible Debentures,
Notices (including AGM), Audited Financial Statements,
term loans, etc. The Company has also been availing the
Report of Directors, Auditors Report, etc. to a significant
services of Canbank Computer Services Ltd., a subsidiary of
number of shareholders to their registered e-mail address
the Sponsor Bank, as the Registrar & Share Transfer Agents of
made available to the Company by the Depositories or by
the Company (RTA). Further, the Company has registered itself
the members themselves. The above documents would
with the Insurance Regulatory & Development Board of India
also be available on the website of the Company https://
w.e.f. December 01, 2017 and has entered into Distribution
www.canfinhomes.com/invester-presentation.aspx by the
Agreement and Service Level Agreement with Canara HSBC
shareholders.
OBC Insurance Company Ltd., (CHOICe), a joint venture
The Annual Report of the Company for the financial year Company of Canara Bank, for carrying out Insurance agency
2018-19 will be e-mailed to the members as stated above. If business and has been earning commission income for the
any member wishes to get a hard copy of the Annual Report, same from CHOICe.
the Company will send the same, free of cost, upon receipt
The Company has obtained prior approval/ratification of the
of request from the member. The annual reports to all other
shareholders for the material related party transactions which
members, who have not registered their email addresses, will
would be entered into or already entered into by the Company
be sent to their registered address.

116
 Statutory Reports | Annual Report 2018-19

with Canara Bank and/or its subsidiaries for an amount not National Housing Bank (NHB) in its regulatory Audit
exceeding H5,000 Crore (Rupees Five Thousand Crore) only, by conducted during the financial year FY 2016-17, for FY
way of special resolution at the 31st Annual General Meeting of 2014-15 and FY 2015-16, had raised an issue on the
the Company held on July 18, 2018. As on March 31, 2019 the procedure followed by the Company since inception, on
overall related party transactions of the Company outstanding valuation of Government Securities under HTM category
with Canara Bank and/or its subsidiaries was H4031.80 Crore. invested for SLR purpose. NHB vide its letter NHB(ND)/
DRS/SUP/9349/2017 dated September 19, 2017 has
The Company has been disclosing all the transactions with imposed an aggregate penalty of H28,62,708/- under the
related parties on a quarterly basis to the stock exchanges Provisions of Section 29 of the National Housing Bank Act,
along with the compliance report on corporate governance in 1987 and the same is paid.
terms of Regulation 27 of SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015. (ii) During 2018-19, NHB vide its letter NHB(ND)/DRS/
APPEAL-1/17/A-744/2019 dated January 17, 2019 has
The disclosure in compliance with the Accounting Standard imposed a penalty of H5,900 (inclusive of GST@18%) for
on ‘Related Party Disclosures’ as required under Regulations alleged contravention of section 32 of the NHB Act, 1987
34(3) and 53(f) read with Part A Schedule V of SEBI (Listing and the Fair Practice Code issued by NHB, for which
Obligations & Disclosure Requirements), Regulations, 2015, the Company has sent a reply and remitted the amount
are disclosed by the Company in the Notes forming part of the under protest.
financial statements (Note No. 32 at page No. 146 of the Annual
Report) and the particulars of such contracts/ arrangements Other than the fine amounts mentioned above, no penalties or
are provided as an annexure to this Report of Directors. This is strictures have been imposed on the Company by any stock
also in compliance of the HFCs Corporate Governance (NHB) exchange, SEBI or any other statutory authority on any matter
Directions, 2016. relating to the capital markets.

In compliance with the Regulation 23(9) of the SEBI (Listing (c) Details of establishment of vigil mechanism / whistle
Obligations and Disclosure Requirements) Regulations, 2015, blower policy
the Company has submitted to the stock exchanges a note on
Related Party Transactions, to the extent applicable, drawn in The Company has adopted a Whistle Blower Policy/ vigil
accordance with applicable accounting standards for the half mechanism for the Directors, employees and other stakeholders
year ended March 31, 2019. to enable them to report concerns about unethical behaviour,
actual or suspected fraud or violation of the Company’s Code
The Company’s Related Party Transactions Policy mainly of Conduct. Under this mechanism, the improper practice,
covers the objectives, scope, transactions that are considered if any, in the Company, can be directly reported to the Audit
as related party transactions, identification of potential related Committee. A communication in this regard has been sent to
party transactions, approval of related party transactions, all the employees of the Company and reiterated during the
procedure for seeking approval, review, disclosures etc. The Branch Managers’ Conference, training programmes and in
Company’s Related Party Transactions Policy is on the website Circulars. The Company affirms that the mechanism provides
of the Company placed at https://www.canfinhomes.com/pdf/ adequate safeguards against victimisation of Director(s)/
Related-Party-Transactions-Policy-of-the-Company-120419. employee(s) who use the mechanism, provides for direct
pdf and also placed as Annexure to Report of Directors. access to the Chairperson of the Audit Committee and also
affirms that no personnel have been denied access to the Audit
(b) Details of non-compliance by listed entity, penalties, Committee.
strictures imposed on the listed entity by stock exchange(s)
or the Board or any statutory authority, on any matter The details of establishment of the mechanism has been placed
related to capital markets, during the last three years; by the Company on its website at https://www.canfinhomes.
com/pdf/Whistle-Blower-Policy-120419.pdf
(i) During 2017-18, the Company has complied with
requirements as per Para 29 of the Housing Finance
Companies (NHB) Directions 2010 except for one instance
detailed below;

117
Can Fin Homes Ltd

(d) Policy on Prevention, Prohibition and Redressal of Sexual (i) Certification from Company Secretary in Practice:
Harassment at Work place:
Shri S Kedarnath, M/s. S. Kedarnath & Associates, Practicing
The Company has zero tolerance for sexual harassment at Company Secretaries, has conducted Secreterial Audit and his
workplace and has adopted a Policy on Prevention, Prohibition Audit Report is annexed to the Report of the Directors and will be
and Redressal of Sexual Harassment at workplace in line submitted to the stock exchanges and the Ministry of Corporate
with the provisions of the Sexual Harassment of Women at Affairs along with the Annual Report. He has also issued a
Workplace (Prevention, Prohibition and Redressal) Act, 2013 certificate as required under the Listing Regulations, confirming
and the rules made thereunder. The Policy aims to provide that none of the directors on the Board of the Company has been
protection to employees at workplace and prevent and redress debarred or disqualified from being appointed or continuing as
complaints of sexual harassment and for matters connected director of companies by the SEBI / Ministry of Corporate Affairs
or incidental thereto, with the objective of providing a safe or any such statutory authority. The certificate is enclosed with
working environment, where employees feel secure. The this report as Annexure-2.
Company has revisited the Internal Complaints Committee
members and emphasized on the roles and responsibilities (j) There have been no instances during the year where
expected from the members. recommendations of the any Committee of the Board were not
accepted by the Board.
Disclosures under the Sexual Harassment of Women at Work
place (Prevention, Prohibition and Redressal) Act, 2013: (k) Total fees for all services paid by the Company and its
subsidiaries, on a consolidated basis, to the statutory auditor
Number of Complaints filed during the financial Nil is given below:
year 2018-19
Auditors Remuneration J in Lakhs
Number of Complaints disposed off during the Nil
financial year 2018-19 Audit Fees (Including Branch Statutory 48.16
Auditors fees and Tax audit)
Number of Complaints pending as on end of the Nil
Tax Matters 0.30
financial year 2018-19
Other Services (Certification etc.) 2.50
(e) Details of compliance with mandatory requirements: Out of Pocket Expenses 6.90
Total 57.86
The Company has complied with all the mandatory requirements
specified in Regulations 17 to 27 and all the applicable clauses
of Regulation 46(2) (b) to (i) of the Listing Regulations. (l) Compliance with Accounting Standards

This Corporate Governance Report of the Company for the The financial statements of the Company have been prepared
FY18-19 and as on March 31, 2019 are in compliance with in accordance with Indian Accounting Standards (Ind AS) as
the requirements of Corporate Governance under SEBI (Listing notified under the Companies (Indian Accounting Standards)
Obligations and Disclosure Requirements) Regulations, 2015. Rules, 2015 and Companies (Indian Accounting Standard)
Amendment Rules, 2016 as applicable read with Section 133
(f) Subsidiaries of the Companies Act, 2013 and guidelines issued by National
Housing Bank.
The Company has no subsidiaries and as such the requirement
of certain compliances relating to subsidiaries, as prescribed, (m) Shareholding of Non- Executive Directors
are not applicable.
None of the Non-Executive Directors of the Company hold any
(g) Commodity risks faced by the Company during the year equity shares of the Company.
and commodity hedging activities : Not applicable.
(n) Management Discussion and Analysis Report
(h) Details of utilization of funds raised through preferential
allotment or qualified institutions placement as specified under The Management Discussion and Analysis Report forms
Regulation 32(7A): Not applicable for the year. part of the Report of the Directors, which includes discussion
on industry structure, opportunities and threats, segment/

118
 Statutory Reports | Annual Report 2018-19

product-wise performance, outlook, risks and concerns, internal (iv) Reporting of Internal Auditor: The Internal Auditor(s) of
control systems and their adequacy, financial performance the Company may report directly to the Audit Committee
with respect to operational performance, developments, if without restrictions. The Internal Auditors, as stakeholders,
any, in Human Resources/Industrial Relations front, including have direct access to the Chairperson of the Audit
number of people employed, details of significant changes in Committee under the Whistle Blower Policy of the Company,
key financial ratios etc. which is made available on the website at https://www.
canfinhomes.com/pdf/Whistle-Blower-Policy-120419.pdf
The Senior Management personnel have made disclosures to
the Board relating to all material transactions, where they have
personal interest, which has a potential conflict of interest, if 8. Compliance with the Code of Conduct
any, with the Company at large. The Company has disclosed
The Company has adopted the “Code of Conduct for Directors
the Code of Conduct for the Board and senior management, on
& Independent Directors” and “Code of Conduct for Senior
the website of the Company.
Management of Can Fin Homes Ltd”. The updated Code
(o) Insider Trading Regulations incorporates the duties of Independent Directors. The Codes
are available on the website of the Company at https://www.
The Company has adopted the Code of Conduct for Prevention canfinhomes.com/policies-codes.aspx.
of Insider Trading and Fair Disclosure of Unpublished Price
Sensitive Information. This Code of Conduct is applicable The Managing Director and CEO of the Company has given a
to all the Directors and such designated persons who are declaration that the members of the Board of Directors and Senior
expected to have access to unpublished price sensitive Management Personnel have affirmed compliance with the Code
information relating to the Company. The amended policy is of conduct of Board of Directors and Senior Management during
available on our website at https://www.canfinhomes.com/ the FY19. The said declaration has been placed as an Annexure
pdf/Code-of-Conduct-Prevention-of-Insider-Trading-Fair- 1 to this Report.
Disclosure-120419.pdf
9. CEO and CFO Certification
7. Compliance with discretionary requirements
In terms of Regulation 17(8) and Part B of Schedule II of SEBI
The status of adoption of the non- mandatory requirements as (Listing Obligations and Disclosure requirements) Regulation,
specified in Regulation 27(1) of the SEBI (LODR) Regulations, 2015, a certificate from the Chief Executive Officer (CEO) and
2015, are as follows: the Chief Financial Officer (CFO) of the Company confirming,
amongst other aspects, the correctness of the financial
(i) The Board: The Chairperson of the Company is Non- statements, adequacy of internal control measures and
Executive Chairperson; matters to be reported to the Audit Committee, were taken on
record at the Board meeting held on April 30, 2019 convened
(ii) Shareholder Rights: Half-yearly and other quarterly for approval of the audited financial results of the Company for
financial statements are published in newspapers, the year under review. The said certification has been placed
uploaded on Company’s website www.canfinhomes.com, as an annexure 3 to this report.
submitted to Stock exchanges on which Equity shares/
Non-convertible debentures of the Company are listed 10. Disclosures with respect to demat suspense
viz., the National Stock Exchange of India Ltd., and the BSE account/ unclaimed suspense account;
Limited; The Company protects and facilitates the exercise
of the rights of the shareholders. The details of shares in the demat suspense account or
unclaimed suspense account, as applicable are given below:
(iii) Modified opinion(s) in audit report: The Company has a
regime of un-qualified financial statements. There were no (a) Aggregate number of shareholders and the outstanding
qualifications on financial statements by the Auditors. shares in the suspense account lying at the beginning of
the year: 2275 shares of shares of H 2/- each pertaining to
7 number of shareholders;

119
Can Fin Homes Ltd

(b) Number of shareholders who approached listed entity for 11. Report on Corporate Governance
transfer of shares from suspense account during the year;
Nil; The Company has complied with the mandatory requirements
as stipulated under Regulation 27 and Part C(11) of
(c) Number of shareholders to whom shares were transferred Schedule V of SEBI (Listing Obligations and Disclosure
from suspense account during the year: Nil; requirements) Regulation, 2015. The quarterly compliance
reports on corporate governance together with a statement
(d) Aggregate number of shareholders and the outstanding
on related party transactions are submitted by the Company
shares in the suspense account lying at the end of the
to the stock exchanges within the prescribed time limit,
year: 2275 shares of shares of H 2/- each pertaining to 7
duly signed by the Compliance Officer of the Company. The
number of shareholders.
Corporate Governance reports are uploaded in the Company’s
That the voting rights on these shares shall remain frozen till website for the information of all stakeholders.
the rightful owner of such shares claims the shares.

For and on behalf of the Board of Directors

Sd/-
Place: Bengaluru Bharati Rao
Date : May 22, 2019 Chairperson

120
 Statutory Reports | Annual Report 2018-19

Annexure 1
DECLARATION BY THE CEO - CODE OF CONDUCT

[Schedule V (D) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Board of Directors,

Can Fin Homes Ltd.
Bengaluru

Dear members of the Board,

Sub: Compliance with Code of conduct by the Board of Directors and Senior Management.

I, S K Hota, Managing Director & Chief Executive Officer of Can Fin Homes Ltd., hereby declare that all the members of the Board
and Senior Management Personnel of the Company have affirmed compliance with the Code of Conduct of Board of Directors and
Senior Management for the financial year ended March 31, 2019.

Sd/-
Place: Bengaluru S K Hota
Date: April 10, 2019 Managing Director & CEO

Annexure 2
CERTIFICATE FROM COMPANY SECRETARY IN PRACTICE

[Pursuant to Clause 10 of Part C of Schedule V of SEBI (LODR) Regulations, 2015]

To the Members of Can Fin Homes Limited,

In pursuance of sub clause (i) of clause 10 of Part C of Schedule V of the Securities and Exchange Board of India (SEBI) (Listing
Obligations and Disclosure Requirements) Regulations, 2015; in respect of Can Fin Homes Limited (CIN: L85110KA1987PLC008699),
it is hereby certified that:

On the basis of the written representations/declarations received from the directors and taken on record by the Board of Directors,
as on March 31, 2019, none of the directors on the board of the company has been debarred or disqualified from being appointed
or continuing as directors of companies by the SEBI/ Ministry of Corporate Affairs or any such statutory authority.

Sd/-
S. Kedarnath
M/s S. Kedarnath & Associates
Place: Bengaluru Company Secretaries
Date: May 04, 2019 FCS: 3031/ CP No.: 4422

121
Can Fin Homes Ltd

Annexure 3
CEO/CFO CERTIFICATION FOR THE YEAR ENDED MARCH 31, 2019

With reference to the certification as per Regulation 17(8) Part B of the SEBI (Listing obligations & Disclosure Requirements)
Regulations 2015, we certify that:

a) We have reviewed financial statements and the Cash Flow statement for the year ended March 31st 2019 and that to the best
of our knowledge and belief:
i. These statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
ii. These statements together present a true and fair view of the company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year, which are
fraudulent, illegal or violative of the company’s code of conduct.

c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated
the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps taken or propose to take to rectify these deficiencies.

d) We have indicated to the auditors and the Audit Committee

i. Significant changes in Internal control over financial reporting during the year;
ii. Significant changes in accounting policies during the year and the same have been disclosed in the notes to the financial
statements; and
iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or
an employee having a significant role in the company’s internal control system over financial reporting.

Sd/-  Sd/-
Place: Bengaluru Atanu Bagchi S K Hota
Date: April 30, 2019 Dy. General Manager & CFO Managing Director & CEO

122
 Statutory Reports | Annual Report 2018-19

General Information to Shareholder

This section of the Annual Report offers information to the shareholders pertaining to the Company, its shareholding pattern and
means of dissemination of information, service standards, share price movements and such other information as required under
regulation 34(3) read with Schedule V of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, hereinafter
referred to as `SEBI regulations’.

32ND ANNUAL GENERAL MEETING (AGM)

Date: July 17, 2019 - Wednesday

Time: 11:00 A.M.

Venue: NIMHANS Convention Centre, Opp. Lakkasandra Bus Stop, Hosur Road, Bengaluru, Karnataka- 560029

Bus Route Nos. from Kempegowda station/Majestic to NIMHANS: Frequent buses - 171, 340A, 342F, 356, 356M, 360B, 365, 365D,
365J, 369D, KBS3A, KBS3C, KBS3E, V356C, V356N, V360B & V365 (Route MAP is made available in the Notice of the AGM).

Financial year is from April 01, 2019 to March 31, 2020

Calendar 2019-20: The probable schedule for holding meetings of the Audit Committee/Board of Directors is as under:

Table-3 Purpose Probable date

Nature of Meeting
Audit Committee/ To review, approve and take on record the financial results for the During Second/Third week
Board Meeting quarter ending June 30, 2019 of July, 2019
Audit Committee/ To review, approve and take on record the financial results for the During Second/Third week
Board Meeting quarter ending September 30, 2019. of October, 2019
Audit Committee/ To review, approve and take on record the financial results for the During Second/Third week
Board Meeting quarter ending December 31, 2019. of January, 2020
Audit Committee/ To review, approve and take on record the financial results (Audited) During Second/Third week
Board Meeting for the quarter and the financial year ending March 31, 2020. of April, 2020

DATE OF BOOK CLOSURE:

July 11, 2019 Thursday to July 17, 2019 Wednesday (both days inclusive).

DIVIDEND PAYMENT:

The Board of Directors of the Company have recommended a dividend of H2/- per equity share of face value of H2/- each (100%)
for the financial year ended March 31, 2019, subject to approval of the shareholders at the ensuing annual general meeting and if
declared, will be paid within 7 days i.e. on or before July 24, 2019.

Entitlement for Dividend:

i. For the shares held in physical form: To the shareholders whose names appear on the register of members as at the close of
business hours on July 10, 2019.

ii. For shares held in electronic form: To the Beneficial owners whose name appear in the statements of beneficial position
furnished by the National Securities Depository Ltd.(NSDL) and Central Depository Services (India) Ltd. (CDSL) as at the close
of business hours on July 10, 2019.

123
Can Fin Homes Ltd

LISTING OF EQUITY SHARES

BSE Limited National Stock Exchange of India Ltd.
P J Towers, Dalal Street, Mumbai 400001. Exchange Plaza”, Bandra-Kurla complex, Bandra(E), Mumbai 400051.

LISTING OF DEBT SECURITIES

The Non Convertible Debentures (NCDs) issued by the companies on private placement are listed on WDM segment of National
Stock Exchange of India Limited.

Debenture Trustees  BICAP Trustees Company Limited

S
6th Floor, Apeejay House, 3, Dinshaw Wachha Road, Churchgate, Mumbai, 400020
Tel : 022-43025555, Fax : 022-43025500

LISTING FEE

The listing fees for the year 2018-19 and 2019-20 have been paid to the above Stock Exchanges where the securities of the
Company are listed within the prescribed time.

The Annual Custodial Fees for 2019-20 has been paid within the due date to CDSL and that of NSDL will be settled on receipt of
invoice.

STOCK CODE

The Scrip Name and Scrip Code at the stock exchanges viz., BSE Limited, Mumbai and National Stock Exchange of India Ltd,
Mumbai, are as under:
NSE Symbol: CANFINHOME
BSE Scrip Code: 511196

The ISIN allotted to the Equity Shares of the Company is: INE477A01020. National Stock Exchange has added the shares of our
Company to the Futures and Options segment w.e.f April 28, 2017.

MARKET PRICE DATA – HIGH/LOW DURING EACH MONTH IN THE LAST FINANCIAL YEAR

Month and Year National Stock Exchange of India Ltd. Bombay Stock Exchange Ltd.(BSE),
(NSE), Mumbai (J) Mumbai (J)
High Low High Low
April, 2018 464.00 414.65 466.05 415.05
May, 2018 428.90 345.55 428.75 345.75
June, 2018 387.00 333.10 386.45 334.10
July, 2018 377.00 320.00 377.70 320.50
August, 2018 345.00 308.40 344.60 306.15
September, 2018 246.65 223.00 336.50 220.05
October, 2018 279.80 216.50 279.35 217.00
November, 2018 288.75 247.45 288.90 247.65
December, 2018 297.40 226.40 296.00 228.60
January, 2019 290.35 240.70 290.05 240.20
February, 2019 279.25 235.55 279.50 234.65
March, 2019 356.80 267.20 356.15 268.70
* The securities were not suspended from trading, any time during FY19.

124
 Statutory Reports | Annual Report 2018-19

PERFORMANCE IN COMPARISON TO BROAD-BASED INDICES SUCH AS NSE NIFTY & CRISIL INDEX :-
2014-2019

Graphical representation

+2000%

+1500%

+1000%

+500%

Mar’14 Mar’15 Mar’16 Mar’17 Mar’18 Mar’19

Can Fin Homes NSE Nifty CRISIL INDEX

STOCK PRICE AND BOOK VALUE – YEAR TO YEAR – 2014-2019

Book Value per share as on March 31, 2019 = H133.90/- per equity share of face value of H2/- per share.

Market Value per share as on March 29, 2019 (High) =H356.80 (NSE), H356.15 (BSE).

Graphical representation

484.5

424.29

348.85

230.88

133.9
121.2 101
81
58 66
44
38

Mar’14 Mar’15 Mar’16 Mar’17 Mar’18 Mar’19

BVPS Share Price

P.S.: Face value of share is H2/- per share, since Oct’17. Hence for the sake of better presentation the face value has been converted
to H2/- for Mar’14 to Mar’17.

125
Can Fin Homes Ltd

REGISTRAR AND SHARE TRANSFER AGENTS DEMATERIALISATION OF SHARES AND LIQUIDITY

(RTA)
The equity share of the Company are in the list of scripts specified
Canbank Computer Services Ltd., by SEBI to the compulsorily traded in the electronic form. About
Unit: Can Fin Homes Ltd., 98.21% of paid up capital is held in dematerialised form and
R&T Centre, No.218, J P Royale, I Floor, the remaining 1.79% are held in physical form. The securities
2nd Main, Sampige Road, (Near 14th Cross), of the Company are admitted as the ‘Eligible Securities’ into
Malleshwaram, Bengaluru 560003 the Depository system by NSDL and CDSL. The shares of the
Tel: 080-23469661/62, 23469664/65 Company are listed and traded actively on the stock exchanges
Fax: 080-23469667; and hence the liquidity for the shares of the Company is high.
e-mail: ravi@ccsl.co.in and naidu@ccsl.co.in
ADDRESS FOR CORRESPONDENCE
SHARE TRANSFER SYSTEM
Shareholder’s correspondence may please be addressed to
The powers to consider and approve share transfers/ the Registrar & Share Transfer Agents at the above mentioned
transmissions / consolidation / sub-division, etc. have been address. They may also contact investor relationship Dept.,
delegated by the Board to the Company Secretary and one Can Fin Homes Ltd., Registered Office, 29/1, Sir M N Krishna
of the Asst. General Managers at the Registered Office of the Rao Road, Basavanagudi, Bengaluru – 560004. (Tel: 080
Company and such requests are processed once in ten days. 26564259; Fax: 080 26565746);
However, in cases of disputes over title to shares pending E-mail: investor.relationship@canfinhomes.com
before Courts or otherwise stop transfer instructions are
registered by owners, the transfers take place on resolution of
disputes between the parties and/or in terms of the applicable
provisions of law.

DISTRIBUTION OF SHAREHOLDING AS OF MARCH 31, 2019

Amount (J) Members Shares

Number % Amount (J) %
Upto - 5000 75,983 85.67 2,03,00,452 7.62
5001 - 10000 6,325 7.13 96,95,364 3.64
10001 - 20000 3,620 4.08 1,05,81,938 3.97
20001 - 30000 1061 1.20 54,01,874 2.03
30001 - 40000 484 0.55 34,30,500 1.29
40001 - 50000 295 0.33 27,46,596 1.03
50001 - 100000 504 0.57 70,26,690 2.64
100001 and above 420 0.47 20,71,24,836 77.78
Total 88,692 100.00 26,63,08,250 100.00

126
 Statutory Reports | Annual Report 2018-19

SHAREHOLDING PATTERN OF THE COMPANY AS OF MARCH 31, 2019

Sl. No Particulars/ No. of Total Total shareholding as No. of equity Total demat shareholding
Category of Shareholder Shareholders number of % of total No. of equity shares in as % of total No. of equity
shares share holdings (%) de-mat form share holdings (%)
1 Promoter and Promoter 1 39930365 29.99 39930365 29.99
Group
2 Mutual Funds/UTI 24 3786280 2.84 3785280 2.84
3 Financial Institutions/ 5 1023579 0.77 1023579 0.77
Banks
4 Insurance companies 1 191278 0.14 191278 0.14
5 Foreign Institutional 0 0 0 0 0
Investors
6 Bodies Corporate 1216 19453310 14.61 19408810 14.58
7 Individuals 82757 39909840 29.97 37578544 28.22
8 Trust 7 24841 0.02 24841 0.02
9 Director & their relatives 0 0 0.00 0 0.00
10 Non Resident Indians 2659 1658806 1.25 1658806 1.25
11 Clearing members 243 882652 0.66 882652 0.66
12 Hindu Undivided Families 1689 728657 0.55 728657 0.55
13 Employee shareholders 14 21690 0.02 13360 0.01
14 Limited Liability 0 0 0.00 00 0.00
Partnership/ Qualified
Foreign Investor
15 Foreign Financial 1 2000 0.00 0 0.00
Institution
16 Foreign Corporate Bodies 74 25288027 18.99 25288027 18.99
17 Foreign Nationals 0 0 0.00 0 0.00
18 IEPF Authority 1 252800 0.19 252800 0.19
GRAND TOTAL 88692 133154125 100.00 130766999 98.21

SHAREHOLDERS HOLDING MORE THAN 1% OF THE SHARES

Sl. No Name of the shareholder No. of shares %

1 Canara Bank 39930365 29.99
2 Caladium Investment Pte Ltd 17904245 13.45
3 Chhattisgarh Investments Limited 11979411 9.00
4 Nitin Raojibhai Desai 2156600 1.62
5 Apax Global Alpha Limited 1532000 1.15
6 Sarda Energy And Minerals Limited 1500000 1.13

127
Can Fin Homes Ltd

CREDIT RATINGS
Credit Rating Agency Instrument Ratings Revisions, if any Revision Rational
India Ratings and Debentures IND AAA (Negative) None NA
Research Pvt. Ltd. Tier II Bonds IND AAA (Negative) None NA
(FITCH)
CARE Limited Debentures CARE AAA (Stable) None NA
Tier II Bonds CARE AAA (Stable) None NA
Commercial Papers CARE A1+ None NA
ICRA Limited Debentures [ICRA] AAA [ICRA]AA+ The reason for revision in ratings is due
(Negative) (Stable) to the downgrade in credit ratings of
the Company’s principal shareholder
(Promoter) viz. Canara Bank
Tier II Bonds [ICRA] AAA [ICRA]AA+ The reason for revision in ratings is due
(Negative) (Stable) to the downgrade in credit ratings of
the Company’s principal shareholder
(Promoter) viz. Canara Bank
Commercial Papers [ICRA]A1+ None NA
Deposits MAAA(Negative) MAAA(Stable) Upgradation in outlook from negative
to stable.

OTHER INFORMATION
ADR/GDRs:

The Company has not issued any Global Depository Receipts (GDRs) or American Depository Receipts (ADRs).

Plant Location:

Details of all the branches of the Company are provided at the end of the report.

UNCLAIMED DIVIDEND
Pursuant to the provisions of Sections 124 and 125 of the Companies Act, 2013, any money transferred to the unpaid Dividend
Account of the Company, which remains unpaid for a period of 7 years, shall be transferred to IEPF.

In terms of the said provisions, the due date for transfer of unclaimed dividend amount to IEPF is as under:
Dividend- Dividend Per Share Balance in unpaid Unclaimed dividend as Declared at the Due date for transfer
relevant (Face value of J 10 upto dividend account as on a % of total amount of AGM held on to Protection Fund
years FY16-17 & J 2 for FY17-18) March 31, 2019 (J) dividend declared (IEPF)*
2011-12 3.00 10,03,791.00 1.63 08.08.2012 08.08.2019
2012-13 4.00 14,87,304.00 1.81 07.08.2013 07.08.2020
2013-14 6.50 21,87,042.50 1.64 31.07.2014 31.07.2021
2014-15 7.00 22,92,234.00 1.23 08.07.2015 08.07.2022
2015-16 10.00 30,93,540.00 1.16 20.07.2016 20.07.2023
2016-17 10.00 32,77,080.00 1.23 28.06.2017 28.06.2024
2017-18 2.00 30,35,504.00 1.14 18.07.2018 18.07.2025
P.S.: Members of the Company can claim the unpaid dividend, if any, from the Company before the respective due dates of transfer to IEPF as mentioned above.
As per Section 124(4) of the Companies Act, 2013 any person claiming to be entitled to any money transferred to IEPF may apply to the IEPF Authority for the
payment of money claimed.

128
 Statutory Reports | Annual Report 2018-19

TRANSFER OF SHARES TO IEPF DEMAT ACCOUNT physical holders. Only in cases where either bank details such
as MICR (Magnetic Ink Character Recognition), IFSC (Indian
In terms of Rule 6 of the Investor Education and Protection Fund Financial System Code) etc. are not available or electronic
Authority (Accounting, Audit, Transfer and refund) Rules, 2016 payment instructions have failed or have been rejected by the
(notified on September 05, 2016) and the related Amended bank, the Company has sent letters to shareholders requesting
rules, 2017 (notified on October 16, 2017) our Company is for modification of Bank account particulars with our RTA/
required to transfer all the shares, in respect of which dividend Depository Participant Accounts. Where the details are not
amounts have not been paid or claimed for 7 consecutive provided, then dividend payments are made to the investors
years, to ‘IEPF Demat Account’ opened with the Depository for using physical instruments.
the purpose by the Company.

In terms of the above Rules, reminders dated September NOMINATION

24, 2016, December 02, 2016 and April 13, 2017 were sent
Pursuant to Section 72 of the Companies Act, 2013 and Rule 19
by the Company to about 400 shareholders who have not
of the Companies (Share Capital and Debentures) Rules, 2014,
claimed their dividends for a consecutive period of 7 years,
individual/joint members of the Company may at any time,
informing that their shares will be transferred to IEPF suspense
nominate in Form No.SH-13, any person as his/ her nominee in
account on the prescribed due dates, if they do not place their
whom the security shall vest in the event of his/her death. Only
claim for unclaimed dividend amounts before the Company.
individual shareholder(s) applying for/holding shares on his/
Finally, during the FY2017-18, within the prescribed due
her behalf can make a nomination. If the shares are held jointly,
date the Company had transferred 248050 Nos. of equity
all the holders shall together nominate an individual person as
shares pertaining to 364 shareholders to IEPF. During the
their nominee. Nomination stands automatically rescinded on
FY2018-19 your Company has transferred 4750 Nos. of
transfer/ dematerialisation of shares.
equity shares pertaining to 7 shareholders were transferred
to IEPF. Your Company has provided the IEPF Rules, the paper The said form is made available on the website of the
notifications issued and a list of the shareholders, whose shares Company in ‘Investor page’. Shareholders holding shares in
have been transferred to IEPF in the Investor Page of the website dematerialised form are requested to contact their respective
of the Company. Any shareholder can claim back his shares by depository participants. Shareholders holding shares in
filing the claim in the prescribed form (E-form IEPF-5). physical form are requested to submit the Form to the RTA.

ISSUE OF DUPLICATE DIVIDEND WARRANTS FOLIO CONSOLIDATION

A duplicate dividend warrant can be issued after the expiry of Shareholders holding shares under more than one folio may
the validity period of the original warrant after complying with write to the Company or its RTA to consolidate their folios. In
the simple prescribed procedural formalities. Shareholders case of joint holdings, even if the order of names is different,
who have lost their warrants/where the warrants are stale shareholders can have them transposed without payment
(older than 3 months) may write to RTA for revalidation. of stamp duty by sending a letter duly signed by all the
shareholders. This will facilitate safekeeping and save cost at
the time of dematerialisation. The above would be subject to
BANK ACCOUNT PARTICULARS verification of the signature(s) of the concerned shareholders.
SEBI has issued a Circular CIR/MRD/ DP/10/2013 dated March
21, 2013 [in the light of developments in the field of electronic COMPLIANCE OFFICER
payment system by various modes viz., National Electronic
Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) etc.,] Smt. Veena G Kamath
whereby it has been made mandatory for the Companies to AGM & Company Secretary
maintain requisite bank details of their investors. Can Fin Homes Ltd.,
Sir M N Krishna Rao Road,
In terms of the said circular, the Company has been making Basavanagudi, Bengaluru 560004.
remittances, if any, to members through bank account details Phone:080-26564259, Fax:080-26565746
as sought from NSDL/ CDSL (demat accounts) and to the Email: investor.relationship@canfinhomes.com,
account particulars furnished to the Company/RTA by the compsec@canfinhomes.com

129
Financial
Statements
 Financial Statements | Annual Report 2018-19

Independent Auditors’ Report

To,
The Members,
Can Fin Homes Limited

Report on the Audit of Ind AS Financial Statements Basis for Opinion:

Opinion We conducted our audit of the financial statements in

accordance with the Standards on Auditing (SAs) specified
We have audited the accompanying Ind AS financial statements under section 143(10) of the Act. Our responsibilities under
of Can Fin Homes Limited (“the Company”), which comprise those Standards are further described in the Auditor’s
the Balance Sheet as at March 31st, 2019, the Statement of Responsibilities for the Audit of the Financial Statements
Profit and Loss (including Other Comprehensive Income), the section of our report. We are independent of the Company
Statement of Changes in Equity and the Statement of Cash in accordance with the Code of Ethics issued by the Institute
Flows for the year ended on that date including summary of Chartered Accountants of India (ICAI) together with the
of the significant accounting policies and other explanatory ethical requirements that are relevant to our audit of the
information in which are included the Returns for the year financial statements under the provisions of the Act and the
ended on that date audited by the branch auditors of the Rules made thereunder, and we have fulfilled our other ethical
Company’s 155 branches located at various locations across responsibilities in accordance with these requirements and the
India (hereinafter referred to as “the financial statements”). ICAI’s Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis
In our opinion and to the best of our information and according
for our audit opinion on the financial statements.
to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Key Audit Matters:
Act, 2013 (“the Act”) in the manner so required and give a
true and fair view in conformity with the Indian Accounting Key audit matters are those matters that, in our professional
Standards prescribed under section 133 of the Act read with judgment, were of most significance in our audit of the
the Companies (Indian Accounting Standards) Rules, 2015, as financial statements of the current period. These matters
amended, (“Ind AS”) and other accounting principles generally were addressed in the context of our audit of the financial
accepted in India, of the state of affairs of the Company as at statements as a whole, and in forming our opinion thereon, and
March 31st, 2019, the profit and total comprehensive income, we do not provide a separate opinion on these matters. We
changes in equity and its cash flows for the year ended on have determined the matters described below to be the key
that date. audit matters to be communicated in our report.

Sr. Key Audit Matter Auditor’s response

No.
1. Expected credit loss allowances: We evaluated management’s process and tested key controls
around the determination of expected credit loss allowances,
Ind-AS accounting framework was implemented including controls relating to:
on April 1st, 2018. Accordingly Ind-AS 109 is a new
and complex standard that requires the Company • The identification of events leading to a significant increase in
to recognise Expected Credit Loss (ECL) on financial risk and credit impairment events; and
instruments. This is a significant departure from
the earlier rule based provisioning. Expected credit • The review, challenge and approval of the expected credit loss
loss allowances relating to loans and advances allowances, including the impairment model outputs and key
are determined on a portfolio basis, with the use of management judgements applied.
impairment models. These models are based on
We found that these key controls were designed, implemented and
historical loss experience and use a number of key
operated effectively, and therefore determined that we could place
assumptions including probability of default, loss
reliance on these key controls for the purposes of our audit.

131
Can Fin Homes Ltd

Sr. Key Audit Matter Auditor’s response

No.
given default (including propensity for possession and We understood and assessed the appropriateness of the impairment
forced sale discounts for mortgages) and valuation models developed and used by the management at the entity level.
of recoveries. Our work therefore focused on the This included assessing and challenging the appropriateness of key
appropriateness of modelling methodologies adopted modelling judgements (e.g. the transfer criteria used to determine
and the significant judgements required. significant increase in credit risk). We tested the formulae applied
within the calculation files, the completeness and accuracy of key
Refer to Note 2(h) to the financial statements data inputs, sourced from underlying systems that are applied in the
accounting policy on accounting for the impairment calculation. We also tested the reconciliation of loans and advances
of financial assets and Note 40(i) to the financial between underlying source systems and the expected credit loss
statements for credit risk disclosures and for Credit models
impairment charges and other provisions.
2. Amortisation of Processing Fee: We evaluated management’s process and tested key controls
around the determination of amortization of processing fees,
In accordance with Ind-AS 109, interest income on including controls relating to:
loans is recognised in the statement of profit or loss
using the effective interest method. The calculation • Identification of agent sourced loans
includes all fees paid or received between parties to
the contract that are an integral part of the effective • Estimating the transaction cost relating to sourcing of loans
interest rate, transaction costs, and all other premiums
We found these key controls were designed, implemented and
or discounts, accordingly processing fees collected is
operated effectively, and therefore determined that we could place
an integral part of the effective interest rate calculation.
reliance on these key controls for the purposes of our audit.
The effective interest method is a method of calculating
the amortised cost of a financial asset or a financial We have verified the workings which contain the processing fees
liability and of allocating the interest income or interest collected against each loan sanctioned during the current year as
expense over the relevant period. The effective interest well as previous year. We tested the formulae applied within the
rate is the rate that exactly discounts estimated future calculation files. We tested the completeness and accuracy of key
cash payments or receipts through the expected life data inputs, sourced from underlying systems that are applied in
of the financial asset or, when appropriate, a shorter the calculation. We matched the processing fees in the workings
period to the net carrying amount of the financial asset with the underlying source systems including General Ledger. We
or financial liability. Hence the processing fees income have also tested whether loans which have been pre-closed, the
now is being recognized over the life of the loan. related balance processing fees received have been recognized
fully as income.
Refer to Note 2(k)(ii) to the financial statements for
the accounting policy on recognition of revenue from
Processing Fee.

Information Other than the Financial Statements Information to Shareholders which is expected to be made
and Auditor’s Report Thereon available to us after that date.

The Company’s Board of Directors is responsible for the Our opinion on the financial statements does not cover the
preparation of the other information. The other information other information and we do not express any form of assurance
comprises the information included in the Management conclusion thereon. In connection with our audit of the financial
Discussion and Analysis and Annual report on CSR Activities statements, our responsibility is to read the other information
but does not include the financial statements and our and, in doing so, consider whether the other information is
auditor’s report thereon, which we obtained prior to the date materially inconsistent with the financial statements or our
of this auditor’s report and the Report of Directors including knowledge obtained during the course of our audit or otherwise
Annexures to Directors Report, Corporate Governance and appears to be materially misstated.

132
 Financial Statements | Annual Report 2018-19

If, based on the work we have performed on the other Auditor’s Responsibilities for the Audit of the
information that we obtained prior to the date of this auditor’s Financial Statements
report, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We Our objectives are to obtain reasonable assurance about
have nothing to report in this regard. whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
When we read the reports, which are expected to be made issue an auditor’s report that includes our opinion. Reasonable
available to us after the date of this auditor’s report, if we assurance is a high level of assurance, but is not a guarantee
conclude that there is a material misstatement therein, we are that an audit conducted in accordance with SAs will always
required to communicate the matter to those charged with detect a material misstatement when it exists. Misstatements
governance. In case of uncorrected material misstatement, can arise from fraud or error and are considered material if,
we are required to communicate to other stakeholders as individually or in the aggregate, they could reasonably be
appropriate as well as to take action, applicable under the expected to influence the economic decisions of users taken on
applicable laws and regulations, if any. the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise

Management’s Responsibility for the Financial
professional judgment and maintain professional skepticism
Statements
throughout the audit. We also:
The Company’s Board of Directors is responsible for the
• Identify and assess the risks of material misstatement
matters stated in section 134(5) of the Act with respect to
of the financial statements, whether due to fraud or
the preparation of these Ind AS financial statements that
error, design and perform audit procedures responsive
give a true and fair view of the financial position, financial
to those risks, and obtain audit evidence that is sufficient
performance, total comprehensive income, changes in equity
and appropriate to provide a basis for our opinion. The
and cash flows of the Company in accordance with the
risk of not detecting a material misstatement resulting
accounting principles generally accepted in India, including the
from fraud is higher than for one resulting from error, as
Indian Accounting Standards specified under section 133 of the
fraud may involve collusion, forgery, intentional omissions,
Act. This responsibility also includes maintenance of adequate
misrepresentations, or the override of internal control.
accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing • Obtain an understanding of internal financial controls
and detecting frauds and other irregularities; selection and relevant to the audit in order to design audit procedures
application of appropriate accounting policies; making that are appropriate in the circumstances. Under section
judgments and estimates that are reasonable and prudent; 143(3)(i) of the Act, we are also responsible for expressing
and design, implementation and maintenance of adequate our opinion on whether the Company has adequate
internal financial controls, that were operating effectively for internal financial controls system in place and the
ensuring the accuracy and completeness of the accounting operating effectiveness of such controls.
records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free • Evaluate the appropriateness of accounting policies used
from material misstatement, whether due to fraud or error. and the reasonableness of accounting estimates and
related disclosures made by management
In preparing the financial statements, management is
responsible for assessing the Company’s ability to continue as • Conclude on the appropriateness of management’s use of
a going concern, disclosing, as applicable, matters related to the going concern basis of accounting and, based on the
going concern and using the going concern basis of accounting audit evidence obtained, whether a material uncertainty
unless management either intends to liquidate the Company or exists related to events or conditions that may cast
to cease operations, or has no realistic alternative but to do so. significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty
The Board of Directors are also responsible for overseeing the exists, we are required to draw attention in our auditor’s
Company’s financial reporting process. report to the related disclosures in the financial statements

133
Can Fin Homes Ltd

or, if such disclosures are inadequate, to modify our reports have been furnished to us, and our opinion in so far as
opinion. Our conclusions are based on the audit evidence it relates to the amounts and disclosures included in respect of
obtained up to the date of our auditor’s report. However, these branches, in based solely on the report of such branch
future events or conditions may cause the Company to auditors.
cease to continue as a going concern.
Our opinion is not modified in respect of this matter.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, and
Report on Other Legal and Regulatory
whether the financial statements represent the underlying
Requirements
transactions and events in a manner that achieves fair
presentation 1. As required by the Companies (Auditor’s Report) Order,
2016 (“The order”) issued by the Central Government of
We communicate with those charged with governance
India in terms of sub-section 11 of section 143 of the Act,
regarding, among other matters, the planned scope and
we give in the Annexure (Annexure A) a statement on the
timing of the audit and significant audit findings, including
matters specified in Paragraphs 3 and 4 of the Order, to
any significant deficiencies in internal control that we identify
the extent applicable.
during our audit.
2. As required by section 143(3) of the Act, we report that:
We also provide those charged with governance with a
statement that we have complied with relevant ethical a) We have sought and obtained all the information and
requirements regarding independence, and to communicate explanations which to the best of our knowledge and
with them all relationships and other matters that may belief were necessary for the purposes of our audit;
reasonably be thought to bear on our independence, and
where applicable, related safeguards. b) In our opinion, proper books of account as required
by law have been kept by the Company so far as
From the matters communicated with those charged with appears from our examination of those books and
governance, we determine those matters that were of most proper returns adequate for the purposes of our audit
significance in the audit of the financial statements of the have been received from branches not visited by us.
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or c) The report on the accounts of 155 branch offices
regulation precludes public disclosure about the matter or audited under section 143 by a person other than the
when, in extremely rare circumstances, we determine that a company’s principal auditor has been forwarded to
matter should not be communicated in our report because us as required by sub-section (8) of section 143 and
the adverse consequences of doing so would reasonably have been properly dealt with in preparing our report
be expected to outweigh the public interest benefits of such in the manner considered necessary by us.
communication.
d) The Balance Sheet, the Statement of Profit and
Loss including Other Comprehensive Income, the
Other Matter Statement of Changes in Equity and the Statement of
Cash Flow dealt with by this Report are in agreement
We did not audit the financial statements of 155 branches
with the relevant books of account;
included in the financial statements of the Company whose
financial statements reflect total assets of H12,66,950.47 Lakhs e) In our opinion, the aforesaid financial statements
as at 31st March 2019 and total revenues of H1,14,713.79 comply with the Ind AS specified under Section 133 of
Lakhs for the year ended on that date, as considered in the the Act, read with Rule 7 of the Companies (Accounts)
financial statements. The financial statements of these Rules, 2014;
branches have been audited by the branch auditors whose

134
 Financial Statements | Annual Report 2018-19

f) On the basis of written representations received from i. The Company has disclosed pending litigations
the directors as on 31 March 2019, and taken on as contingent liabilities in Note 35 to the financial
record by the Board of Directors, none of the directors statements, the impact if any on the final
is disqualified as on 31 March 2019, from being settlement of the litigations is not ascertainable
appointed as a director in terms of Section 164(2) of at this stage.
the Act.
ii. The Company has not entered into any long-term
g) With respect to the adequacy of the internal financial contracts including derivative contracts which
control over financial reporting of the company and require provision for foreseeable losses as per
the operating effectiveness of such control, refer to law or applicable accounting standards and
our separate report in “Annexure B”,
iii. There has been no delay in transferring amounts,
h) With respect to the other matters to be included in the required to be transferred, to the Investor
Auditor’s Report in accordance with the requirements Education and Protection Fund by the Company.
of section 197(16) of the Act, as amended: Refer Note 15.2 to the Financial Statements.

In our opinion and to the best of our information

and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is within the limit laid down under the
provisions of section 197 of the Act. For VARMA & VARMA
Chartered Accountants
i) With respect to the other matters to be included in FRN 004532S
the Auditor’s report in accordance with rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in R Kesavadas
our opinion and to the best of our information and Place: Bangalore Partner
according to the explanations given to us: Date : April 30, 2019 M.No.23862

135
Can Fin Homes Ltd

Annexure - A to the Auditors’ Report

Annexure referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our Independent
Auditors Report of even date on the Financial Statement of M/s Can Fin Homes Limited for the year ended 31st March 2019.

i. In respect of Fixed Assets: or securities which fall under the purview of Sections 185
& 186 of the Companies Act, 2013.
a. The company is maintaining proper records showing
full particulars, including quantitative details and v. The Company has not accepted any deposits within
situation of fixed assets. In our opinion, the records the meaning of Sections 73 to 76 of the Act and the
require further improvement with respect to situation Companies (Acceptance of Deposits) Rules, 2014 (as
of fixed assets. amended). Accordingly, the provisions of clause 3(v) of the
Order are not applicable.
b. We are informed that the fixed assets of the company
located at the 175 branches including the Centralised vi. As per the information and explanation given to us, the
Processing Centre and the Head Office have been Central Government has not prescribed the maintenance
physically verified by the persons in-charge as at of cost records under sub-section (1) of section 148 of the
the year-end except in the case of eight branches Companies Act, 2013 for any of the services rendered by
as reported by the branch statutory auditors and the Company.
no major discrepancies were noticed. In our opinion
the frequency of verification of fixed assets of the vii. In respect of statutory dues:
company is adequate.
a. According to the information and explanation given
c. The title deeds of the immovable property of the to us and as per our verification of the records of the
company are held in its name. company, the Company has been generally regular
in depositing undisputed statutory dues including
ii. The Company is a service company, primarily rendering provident fund, employees‘ state insurance, income-tax,
housing finance services. Accordingly, it does not hold goods and services tax, cess and any other statutory
any inventory of goods. Thus, Para 3(ii) of the Order is not dues with the appropriate authorities and no material
applicable. statutory dues have been outstanding for more than six
months from the due date as at the year end.
iii. As informed, the Company has not granted any loans,
secured or unsecured to companies, firms or other parties b. According to the information and explanation given
covered in the register maintained under section 189 of to us and as per our verification of the records of the
the Companies Act. Company, the following are the disputed amounts of
tax/ duty along with the details of amounts that have
iv. According to the information and explanations given to us been deposited with appropriate authorities as at
and based on the audit procedures conducted by us, the 31st March 2019
Company has not given Loans, guarantees, investments

Statute Nature of dues Amount Amount paid Period to which Forum to which amount
(In Lakhs) (in Lakhs) the amount relates is pending
Income Tax Act, 1961 Income Tax 3.55 3.55* AY 2003-2004 Commissioner of Income
Tax -Appeals
Income Tax Act, 1961 Income Tax 15.61 Nil AY 2004-2005 Deputy Commissioner
Income Tax
Income Tax Act, 1961 Income Tax 568.55 568.55* AY 2006-2007 High Court of Karnataka
Income Tax Act, 1961 Income Tax 446.27 446.27* AY 2007-2008 High Court of Karnataka
Income Tax Act, 1961 Dividend Distribution 16.44 Nil AY 2011-2012 Commissioner of Income
Tax-u/s 115-O Tax -Appeals
*Includes amount paid under protest and amounts adjusted against refunds due to the company.

136
 Financial Statements | Annual Report 2018-19

viii. According to information and explanation given to us and xiii. According to the information and explanations given to
as per our verification of the records of the company, the us and based on our examination of the records of the
Company has not defaulted in repayment of its dues to Company, transactions with the related parties are in
bank/financial institution/government/debenture holders compliance with sections 177 and 188 of the Act where
during the year. applicable and details of such transactions have been
disclosed in the financial statements as required by the
ix. The Company has not raised moneys by way of Initial applicable accounting standards.
Public offer or further public offer. The term loans raised
have been applied for the purposes for which they were xiv. According to the information and explanations given to
raised. The Company has also raised working capital us and based on our examination of the records of the
loans with no repayment schedule and being working Company, the Company has not made any preferential
capital loans the reporting requirements of utilization is allotment or private placement of shares or fully or partly
not commented upon. convertible debentures during the year. Accordingly,
paragraph 3(xiv) of the Order is not applicable.
x. According to the information and explanations given to us
and as per our verification of the records of the company, xv. According to the information and explanations given to
no fraud either on or by the company has been noticed us and based on our examination of the records of the
or reported by its officers or employees during the year Company, the Company has not entered into non-cash
except in the following case. transactions with directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
Nature of Fraud Amount involved
(in Lakhs) xvi. The Company is not required to be registered under section
Fraudulently obtained loan by Loan sanctioned: 755.50 45-IA of the Reserve Bank of India Act, 1934.
borrowers in collusion with Loan outstanding at the
the employee of the Company year-end: 755.64*
*The entire amount has been fully provided for in the books of account.

xi. According to the information and explanations given to us,

the managerial remuneration has been paid or provided
in accordance with the requisite approvals mandated by
For VARMA & VARMA
the provisions of section 197 read with Schedule V to the
Chartered Accountants
Companies Act, 2013.
FRN 004532S
xii. In our opinion and according to the information and
R Kesavadas
explanations given to us, the Company is not a Nidhi
Place: Bangalore Partner
company. Accordingly, paragraph 3(xii) of the Order is
Date : April 30, 2019 M.No.23862
not applicable.

137
Can Fin Homes Ltd

Annexure - B to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial effectiveness. Our audit of internal financial controls over
reporting of M/s Can Fin Homes Limited (“the Company”) as of financial reporting included obtaining an understanding of
31st March 2019 in conjunction with our audit of the financial internal financial controls over financial reporting, assessing
statements of the Company for the year ended on that date. 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
Management’s Responsibility for Internal
depend on the auditor’s judgment, including the assessment of
Financial Controls
the risks of material misstatement of the financial statements,
The Company’s management is responsible for establishing whether due to fraud or error.
and maintaining internal financial controls based on the
We believe that the audit evidence we have obtained is
internal control over financial reporting criteria established by
sufficient and appropriate to provide a basis for our audit
the Company considering the essential components of internal
opinion on the Company’s internal financial controls system
control stated in the Guidance Note on Audit of Internal Financial
over financial reporting.
Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (‘ICAI’). These responsibilities
include the design, implementation and maintenance of adequate Meaning of Internal Financial Controls Over
internal financial controls that were operating effectively for Financial Reporting
ensuring the orderly and efficient conduct of its business,
including adherence to company’s policies, the safeguarding of A company’s internal financial control over financial reporting is
its assets, the prevention and detection of frauds and errors, the a process designed to provide reasonable assurance regarding
accuracy and completeness of the accounting records, and the the reliability of financial reporting and the preparation of
timely preparation of reliable financial information, as required financial statements for external purposes in accordance with
under the Companies Act, 2013. generally accepted accounting principles. A company’s internal
financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records
Auditors’ Responsibility that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2)
Our responsibility is to express an opinion on the Company’s
provide reasonable assurance that transactions are recorded
internal financial controls over financial reporting based on
as necessary to permit preparation of financial statements in
our audit. We conducted our audit in accordance with the
accordance with generally accepted accounting principles, and
Guidance Note on Audit of Internal Financial Controls Over
that receipts and expenditures of the company are being made
Financial Reporting (the “Guidance Note”) and the Standards
only in accordance with authorizations of management and
on Auditing, issued by ICAI and deemed to be prescribed
directors of the company; and (3) provide reasonable assurance
under section 143(10) of the Companies Act, 2013, to the
regarding prevention or timely detection of unauthorized
extent applicable to an audit of internal financial controls, both
acquisition, use, or disposition of the company’s assets that
applicable to an audit of Internal Financial Controls and, both
could have a material effect on the financial statements.
issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to Inherent Limitations of Internal Financial Controls
obtain reasonable assurance about whether adequate internal Over Financial Reporting
financial controls over financial reporting was established
and maintained and if such controls operated effectively in all Because of the inherent limitations of internal financial
material respects. controls over financial reporting, including the possibility
of collusion or improper management override of controls,
Our audit involves performing procedures to obtain audit material misstatements due to error or fraud may occur and
evidence about the adequacy of the internal financial not be detected. Also, projections of any evaluation of the
controls system over financial reporting and their operating internal financial controls over financial reporting to future

138
 Financial Statements | Annual Report 2018-19

periods are subject to the risk that the internal financial control Other Matters
over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with Our aforesaid report under Section 143(3)(i) of the Act on the
the policies or procedures may deteriorate. adequacy and operating effectiveness of the internal financial
controls over financial reporting insofar as it relates to 155
branches is based on the corresponding auditors’ reports of
Opinion
the auditors of such branches.
In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial
reporting and such internal financial controls over financial For VARMA & VARMA
reporting were operating effectively as at 31st March 2019, Chartered Accountants
based on the internal control over financial reporting criteria FRN 004532S
established by the Company considering the essential
components of internal control stated in the Guidance Note on R Kesavadas
Audit of Internal Financial Controls Over Financial Reporting Place: Bangalore Partner
issued by the Institute of Chartered Accountants of India. Date : April 30, 2019 M.No.23862

139
Can Fin Homes Ltd

Balance Sheet as at March 31

(H in Lakh)
Sl. Note As at As at As at
Particulars
No. No. March 31, 2019 March 31, 2018 April 1, 2017
ASSETS
I Financial Assets
a) Cash and Cash equivalents 3(a) 40,153.45 73.42 169.49
b) Bank Balances other than (a) 3(b) 1,871.94 1,828.19 1,825.80
c) Derivative Financial Instruments - - -
d) Receivables 4
(i) Trade Receivables 13.91 21.05 -
(ii) Other Receivables - - -
e) Loans 5 1,828,452.29 1,564,400.49 1,322,413.82
f) Investments 6 1,606.50 1,599.75 1,599.13
g) Other Financial Assets 7 289.73 231.40 213.96
II Non-Financial Assets
a) Inventories - - -
b) Current Tax Assets (Net) 8.1 2,062.39 1,380.86 289.20
c) Deferred Tax Assets (Net) 8.2 2,400.76 2,323.56 1,093.98
d) Property, Plant and Equipment 9 985.16 957.00 1,016.97
e) Other non-financial assets 10 147.84 137.27 177.20
TOTAL 1,877,983.96 1,572,952.98 1,328,799.55

LIABILITIES AND EQUITY

LIABILITIES
I Financial Liabilities
a) Derivative Financial Instruments - - -
b) Payables 11
Trade Payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 215.89 869.61 232.67
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 12 345,015.05 489,827.41 369,756.84
d) Borrowings (Other than debt securities) 13 1,298,319.16 879,444.67 794,330.15
e) Deposits 14 26,109.48 22,829.98 22,664.88
f) Subordinated Liabilities - - -
g) Other Financial Liabilities 15 20,796.92 23,905.21 17,228.23
II Non-Financial Liabilities
a) Current tax liabilities (Net) - - -
b) Provisions 16 2,663.65 3,362.84 2,713.04
c) Deferred tax liabilities (Net) - - -
d) Other non-financial liabilities 17 6,645.21 4,014.51 1,503.64
III EQUITY
a) Equity Share capital 18 2,663.31 2,663.31 2,662.25
b) Other Equity 19 175,555.29 146,035.43 117,707.85
TOTAL 1,877,983.96 1,572,952.98 1,328,799.55
Significant accounting policies 1&2

See accompanying notes forming part of the financial statements For and on behalf of the Board
As per our report of even date attached

For Varma & Varma, Bharati Rao S K Hota S M Bhandiwad

Chartered Accountants Chairperson Managing Director Wholetime Director
FRN:- 004532S DIN: 01892516 DIN: 07491088 DIN: 08193978

R. Kesavadas G Naganathan Dr Y Vijayanand S Subramanian

Partner Director Director Director
Membership No: 23862 DIN: 00423686 DIN: 00594503 DIN: 07901414

Debashish Mukherjee Atanu Bagchi Veena G Kamath

Place: Bangalore Director Chief Financial Officer Company Secretary
Date: April 30, 2019 DIN: 08193978

140
 Financial Statements | Annual Report 2018-19

Statement of Profit and Loss for the year ended March 31

(H in Lakh)
Sl. Note Year ended Year ended
Particulars
No. No. March 31, 2019 March 31, 2018
Revenue from Operations
i) Interest Income 20 169,954.89 149,058.44
ii) Fees and Commission Income 21 2,740.22 2,726.14
I Total Revenue from Operations 172,695.11 151,784.58
II Other Income 22 439.45 413.52
III Total Income (I+II) 173,134.56 152,198.10
Expenses
i) Finance Costs 23 116,909.92 98,102.45
ii) Fees and Commission Expense 24 1,085.10 956.57
iii) Impairment on financial instruments 109.22 2,210.00
iv) Employee Benefit Expenses 25 4,139.92 4,481.55
v) Depreciation, Amortisation and Impairment 26 296.88 308.66
vi) Other expenses 27 3,643.04 3,030.47
IV Total Expenses 126,184.08 109,089.70
V Profit(loss) before exceptional items and tax 46,950.48 43,108.40
VI Exceptional items - -
VII Profit(loss) before tax 46,950.48 43,108.40
VIII Tax Expense
a Current Tax 17,203.91 16,075.46
b Tax expense of earlier years 151.54 (334.38)
c Deferred Tax (78.67) (1,251.91)
IX Profit(Loss) for the period from continuing operations 29,673.69 28,619.23
X Profit(Loss) from discontinued operations - -
XI Tax expense of discontinued operations - -
XII Profit(Loss) from discontinued operations (after tax) - -
XIII Profit(Loss) for the period 29,673.69 28,619.23
XIV Other Comprehensive income 38
A. Items that will not be reclassified to profit or loss
(i) Actuarial (Gain)/ loss (4.21) (64.53)
(ii) Income tax relating to items that will not be reclassified to profit or loss 1.47 22.33
B. Items that will be reclassified to profit or loss
(i) Income tax relating to items that will be reclassified to profit or loss - -
Other Comprehensive income (2.74) (42.20)
XV Total Comprehensive Income for the period 29,676.43 28,661.43
XVI Earnings per equity share (for continuing and discontinued operations) 37
Basic (H) 22.29 21.49
Diluted (H) 22.29 21.49
Significant Accounting Policies 1&2

See accompanying notes forming part of the financial statements For and on behalf of the Board
As per our report of even date attached

For Varma & Varma, Bharati Rao S K Hota S M Bhandiwad

Chartered Accountants Chairperson Managing Director Wholetime Director
FRN:- 004532S DIN: 01892516 DIN: 07491088 DIN: 08193978

R. Kesavadas G Naganathan Dr Y Vijayanand S Subramanian

Partner Director Director Director
Membership No: 23862 DIN: 00423686 DIN: 00594503 DIN: 07901414

Debashish Mukherjee Atanu Bagchi Veena G Kamath

Place: Bangalore Director Chief Financial Officer Company Secretary
Date: April 30, 2019 DIN: 08193978

141
Can Fin Homes Ltd

Cash Flow Statement for the year ended March 31

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
A) Cash Flow from Operating Activities
Net Profit Before Tax and Exceptional Items 46,950.48 43,108.40
Add:
i) Adjustment For:
Depreciation and Amortization 296.88 308.66
Loss/(Profit) on Sale of Assets [net] (4.58) (11.77)
Dividend income on mutual funds - (31.27)
Provision no longer required written back (2.15) (274.78)
Interest expense accrued but not paid 18,564.86 22,798.83
Interest income accrued but not received (35.88) (20.81)
Provision/Write offs 109.22 2,210.00
Fair Value adjustments on Debentures 187.63 210.62
Fair Value adjustments on Investments (0.25) (0.63)
Operating Profit before Working Capital Changes 66,066.20 68,297.26
ii) Adjustment For Working Capital:
(Increase)/Decrease in Trade Receivables 7.13 (21.05)
Increase/(Decrease) in Trade Payables (653.72) 636.94
(Increase)/Decrease in Other Financial Assets (22.45) 3.38
(Increase)/Decrease in Loans (264,156.80) (244,196.68)
Increase/(Decrease) in Provisions (697.03) 989.11
(Increase)/Decrease in Other non-financial assets (10.57) 39.93
Increase/(Decrease) in Other financial liabilities (21,673.15) (16,121.86)
Increase/(Decrease) in Other non-financial liabilities 2,630.70 2,510.87
(284,575.89) (256,159.35)
Cash Generated from Operations (218,509.68) (187,862.09)
Less: Taxes Paid 14,983.07 13,960.28
Net Cash Flow from Operating Activities (233,492.75) (201,822.37)
B) Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment (332.72) (257.03)
Sale of Property, Plant and Equipment 12.25 20.11
Investment in Government Securities (6.50) 0.00
(Increase)/Decrease in Other Bank balances (43.75) (2.39)
Dividend income on mutual funds - 31.27
Net Cash Flow from Investing Activities (370.72) (208.04)
C) Cash Flow from Financing Activities
Short term borrowings including commercial papers 50,522.04 (272,893.78)
Long Term Borrowings taken 500,500.00 683,812.77
Long Term Borrowings repaid (132,147.55) (325,804.47)
Proceeds from deposits accepted (net) 3,279.50 165.10
Debt Securities (net) (145,000.00) 119,859.96
Dividend and dividend distribution tax paid (3,210.48) (3,205.26)
Net Cash Flow from Financing Activities 273,943.51 201,934.32

142
 Financial Statements | Annual Report 2018-19

Cash Flow Statement for the year ended March 31

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
Increase/ (Decrease) in Cash & Cash Equivalents 40,080.03 (96.08)
Cash & Cash Equivalents at the Beginning of the Year 73.42 169.49
Cash & Cash Equivalents at the end of the Year [refer note 3(a)] 40,153.45 73.42
Other Notes:
Cash and Cash equivalents include:
Cash on hand 65.07 27.25
Cheques on hand 68.41 43.92
Balance with Banks
- Current Accounts 19.97 2.25
- Fixed Deposits 40,000.00 -
Total 40,153.45 73.42

See accompanying notes forming part of the financial statements For and on behalf of the Board

Bharati Rao S K Hota S M Bhandiwad

Chairperson Managing Director Wholetime Director
DIN: 01892516 DIN: 07491088 DIN: 08193978

G Naganathan Dr Y Vijayanand S Subramanian

Director Director Director
DIN: 00423686 DIN: 00594503 DIN: 07901414

Debashish Mukherjee Atanu Bagchi Veena G Kamath

Director Chief Financial Officer Company Secretary
DIN: 08193978

We have examined the above Cash Flow Statement of Can Fin Homes Limited for the period ended March 31, 2019. The statement
has been prepared by the Company in accordance with the requirements of the listing agreements with the respective stock
exchange and is based on and in agreement with the corresponding Profit and Loss account and Balance sheet of the Company

As per our report of even date attached

For Varma & Varma,

Chartered Accountants
FRN:- 004532S

R. Kesavadas
Partner
Membership No: 23862

Place: Bangalore
Date: April 30, 2019

143
Can Fin Homes Ltd

Statement of Changes in Equity

for the year ended March 31, 2019

(H in Lakh)
Particulars Equity Share Reserves and Surplus Other items Total
Share application of Other
Statutory General Securities Retained Other
Capital money pending Comprehensive
Reserves Reserve Premium Earnings Reserve
allotment Income
Balance as at April 01, 2018 2,663.08 - 18,600.00 49,547.80 27,297.54 37.75 50,508.38 43.95 146,035.42
Equity shares issued during the year - - - - - - - - -
Equity Shares forfeited 0.23 - - - - - - - -
Profit for the year - - - - - 29,673.69 - - 29,673.69
Changes in accounting policy/prior - - - - - - - - -
period errors
Total Comprehensive Income for - - - - - - - 2.74 2.74
the year
Dividends - - - - - - - - -
Transfer to /from retained earnings - - 5,935.29 5,935.29 - (20,610.02) 11,793.37 - 3,053.91
Dividends (including tax thereon) - - - - - (3,210.48) - - (3,210.48)
Others - - - - - - - - -
Balance as at March 31, 2019 2,663.31 - 24,535.29 55,483.09 27,297.54 5,890.94 62,301.74 46.69 175,555.29

(H in Lakh)
Particulars Equity Share Reserves and Surplus Other items Total
Share application of Other
Statutory General Securities Retained Other
Capital money pending Comprehensive
Reserves Reserve Premium Earnings Reserve
allotment Income
Balance as at April 01, 2017 2,662.02 47.62 12,500.00 37,547.80 27,250.97 1,023.78 39,335.91 1.76 117,707.85
Equity shares issued during the year 1.06 - - - - - - - -
Equity Shares forfeited 0.23 - - - - - - - -
Profit for the year - - - - - 28,619.23 - - 28,619.23
Changes in accounting policy/prior - - - - - - - - -
period errors
Total Comprehensive Income for - - - - - - - 42.20 42.20
the year
Transfer to /from retained earnings - (47.62) 6,100.00 12,000.00 46.57 (26,400.00) 11,172.46 - 2,871.41
Dividends (including tax thereon) - - - - - (3,205.26) - - (3,205.26)
Others - - - - - - - - -
Balance as at March 31, 2018 2,663.31 - 18,600.00 49,547.80 27,297.54 37.75 50,508.38 43.95 146,035.43

See accompanying notes forming part of the financial statements For and on behalf of the Board
As per our report of even date attached

For Varma & Varma, Bharati Rao S K Hota S M Bhandiwad

Chartered Accountants Chairperson Managing Director Wholetime Director
FRN:- 004532S DIN: 01892516 DIN: 07491088 DIN: 08193978

R. Kesavadas G Naganathan Dr Y Vijayanand S Subramanian

Partner Director Director Director
Membership No: 23862 DIN: 00423686 DIN: 00594503 DIN: 07901414

Debashish Mukherjee Atanu Bagchi Veena G Kamath

Place: Bangalore Director Chief Financial Officer Company Secretary
Date: April 30, 2019 DIN: 08193978

144
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

1. Company Overview c) Use of estimates and judgment

Can Fin Homes Ltd (The Company)., set up under the The preparation of financial statements in conformity
sponsorship of Canara Bank, was incorporated in the with Ind AS requires management to make judgments,
year 1987, The Company is a housing finance institution estimates and assumptions, that affect the application of
approved by National Housing Bank (NHB), the apex accounting policies and the reported amounts of assets,
authority of housing in the country. It is a listed company liabilities, and disclosure of Contingent liabilities at the date
and its shares are traded in all the major stock exchanges in of these financial statements and the reported amounts
the country. The company has its head office in Bengaluru, of revenues and expenses for the years presented. Actual
Karnataka. results may differ from these estimates.

2. Summary of Significant Accounting Policies: Estimates and underlying assumptions are reviewed
at each balance sheet date. Revisions to accounting
a) Statement of compliance estimates are recognised in the period in which the
estimate is revised and future periods affected.
These financial statements have been prepared in
accordance with Indian Accounting Standards (“Ind AS”) The application of accounting policies that require critical
as notified under the Companies (Indian Accounting accounting estimates involving complex and subjective
Standards) Rules, 2015 and Companies (Indian Accounting judgments and the use of assumptions in these financial
Standards) Amendment Rules, 2016 as applicable read statements are as below:
with Section 133 of the Companies act, 2013 (the “Act”)
and guidelines issued by National Housing Bank. 1. Measurement of Expected Credit Loss
2. Measurement of useful life of Property, Plant &
The Company has adopted all the Ind AS standards and
Equipment
the adoption was carried out in accordance with Ind AS
3. Estimation of Taxes on Income
101 ‘First time adoption of Indian Accounting Standards’.
The transition was carried out from Indian Accounting 4. Estimation of Employee Benefit Expense
Principles generally accepted in India as prescribed under
d) Financial instruments
Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014 (IGAAP), which was the previous Initial recognition and measurement:
GAAP and accordingly previous period has been restated
to Ind-AS. Reconciliations and descriptions of the effect of All financial instruments are recognised initially at fair
the transition has been summarized in Note 43. value. Transaction costs that are directly attributable to
the acquisition of the financial asset are recognised in
Accounting policies have been consistently applied except determining the carrying amount, if it is not classified as at
where a newly-issued accounting standard is initially fair value through profit or loss.
adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use. Purchase or sale of financial assets that require delivery
of assets within a time frame established by regulation
b) Basis of measurement or convention in the market place (regular way trade) are
recognised on trade date. Loans, borrowings and payables
The financial statements have been prepared on a
are recognised net of directly attributable transaction
historical cost convention and on an accrual basis, except
costs. Subsequently, financial instruments are measured
for the following material items that have been measured
according to the category in which they are classified.
at fair value as required by relevant Ind AS:
Subsequent measurement:
i. Certain financial assets and liabilities measured at fair
value (refer accounting policy on financial instruments); For the purpose of subsequent measurement, financial
instruments of the Company are classified in the following
ii. Defined benefit and other long-term employee benefits.
categories: non- derivative financial assets comprising

145
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

amortised cost, debt instruments at fair value through other (ii) Debt instruments at FVTOCI
comprehensive income (FVTOCI), equity instruments at
FVTOCI or fair value through profit and loss account (FVTPL), A debt instrument shall be measured at fair value
non-derivative financial liabilities at amortised cost or FVTPL through other comprehensive income if both of
and derivative financial instruments (under the category of the following conditions are met:
financial assets or financial liabilities) at FVTPL.
(a) the objective of the business model is
The classification of financial instruments depends on achieved by both collecting contractual cash
the objective of the business model for which it is held. flows and selling financial assets and
Management determines the classification of its financial
(b) the asset’s contractual cash flow represents
instruments at initial recognition.
SPPI
a) Non-derivative financial assets
Debt instruments included within FVTOCI
(i) Financial assets at amortised cost category are measured initially as well as
at each reporting period at fair value plus
A financial asset shall be measured at amortised transaction costs. Fair value movements are
cost if both of the following conditions are met: recognised in other comprehensive income
(OCI). However, the Company recognises
(a) the financial asset is held within a business interest income, impairment losses & reversals
model whose objective is to hold financial and foreign exchange gain/(loss) in statement
assets in order to collect contractual cash of profit and loss. On de-recognition of the
flows and asset, cumulative gain or loss previously
recognised in OCI is reclassified from equity to
(b) the contractual terms of the financial asset
profit and loss. Interest earned is recognised
give rise on specified dates to cash flows that
under the effective interest rate (EIR) model.
are solely payments of principal and interest
(SPPI) on the principal amount outstanding. (iii) Debt Instruments at FVTPL
They are presented as current assets, except A financial asset shall be measured at fair value
for those maturing later than 12 months after through profit or loss unless it is measured at
the reporting date which are presented as non- amortised cost or at fair value through other
current assets. Financial assets are measured comprehensive income.
initially at fair value plus transaction costs and
subsequently carried at amortized cost using b) Non-derivative financial liabilities
the effective interest rate method, less any
impairment loss. (i) Financial liabilities at amortised cost

Financial assets at amortised cost are represented Financial liabilities at amortised cost represented
by trade receivables, security deposits, cash and by borrowings, trade and other payables are
cash equivalents, employee and other advances initially recognized at fair value, and subsequently
and eligible current and non-current assets. Cash carried at amortized cost using the effective
and cash equivalents are highly liquid instruments interest rate method.
that are readily convertible into cash and which
e) Statement of Cash Flows
are subject to an insignificant risk of changes in
value and comprise cash on hand and in banks For the purposes of the cash flow statement, cash and cash
and demand deposits with banks which can be equivalents include cash on hand, in banks and demand
withdrawn at any time without prior notice or deposits with banks, net of outstanding bank overdrafts that
penalty on the principal. are repayable on demand, book overdraft and are considered
part of the Company’s cash management system.

146
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

f) Property, plant and equipment g) Leases

i) Recognition and measurement: At the inception of a lease, the lease arrangement is

classified as either a finance lease or an operating lease,
Property, plant and equipment are measured at cost less based on the substance of the lease agreement.
accumulated depreciation and impairment losses, if any.
Costs include directly attributable expenditure incurred Assets taken on finance lease
up to the date the asset is ready for its intended use.
A finance lease is recognised as an asset and a liability at
Amounts paid towards the acquisition of property, the commencement of the lease, at the lower of the fair
plant and equipment outstanding as of each reporting value of the asset and the present value of the minimum
date and the cost of property, plant and equipment not lease payments. Initial direct costs, if any, are also
ready for intended use before such date are disclosed capitalised and, subsequent to initial recognition, the asset
under capital advances and capital work- in-progress is accounted for in accordance with the accounting policy
respectively. Depreciation is not recorded on capital applicable to that asset. Minimum lease payments made
work-in-progress until installation is complete and the under finance leases are apportioned between the finance
asset is ready for its intended use. expense and the reduction of the outstanding liability. The
finance expense is allocated to each period during the
Subsequent expenditure relating to property, plant and lease term so as to produce a constant periodic rate of
equipment is capitalized only when it is probable that interest on the remaining balance of the liability.
future economic benefits associated with these will
flow to the Company and the cost of the item can be Assets taken on operating leases
measured reliably. Repairs and maintenance costs are
recognized in the statement of profit and loss when Leases other than finance leases are operating leases, and
incurred. The cost and related accumulated depreciation the leased assets are not recognised on the Company’s
are eliminated from the financial statements upon sale balance sheet. Payments made under operating leases
or disposition of the asset and the resultant gains or are recognised in the statement of profit and loss on a
losses are recognized in the statement of profit and loss. straight-line basis over the term of the lease.

ii) Depreciation: h) Impairment

Depreciation on tangible assets is provided on the i) Financial assets

Written Down Value method over the estimated
Ind AS 109 establishes a credit risk impairment model
useful life of the assets as prescribed in Schedule II of
based on expected losses. This model will apply to
the Companies Act, 2013, except in case of servers,
loans and debt instruments measured at amortised
where the useful life is estimated to be 3 years
cost or at fair value through shareholders’ equity (on
considering its nature, estimated usage, operating
a separate line), to loan commitments and financial
conditions, anticipated technological changes,
guarantees not recognised at fair value, as well as to
manufacturers warranties and maintenance support.
lease receivables. The impairment model under Ind
Depreciation methods, useful life and residual values are AS 109 requires accounting for 12-month expected
reviewed atleast at each year end. Changes in expected credit losses (that result from the risk of default in the
useful life are treated as change in accounting estimate. next 12 months) on the financial instruments issued
or acquired, as of the date of initial recognition on
When parts of an item of property, plant and the balance sheet. Expected credit losses at maturity
equipment have different useful life, they are (that result from the risk of default over the life of the
accounted for as separate items (major components) financial instrument) will be recognised if the credit
of property, plant and equipment. risk has increased significantly since initial recognition
(Stage 2) or have become credit impaired (Stage 3).

147
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Under the standard, there is also a rebuttable Being a housing finance company, the company has
presumption that the credit risk on a financial asset to follow the guidelines given by the National Housing
has increased significantly since initial recognition Bank (NHB) on Prudential Norms on Asset Classification
when contractual payments are more than 30 days and provisioning requirement. The Prudential norms
past due. Based on past experience, the company has prescribed by NHB do not consider the value of security
developed the ECL model rebutting this presumption for standard and sub-standard assets. The company
and uses 30 days past due as the trigger for confirming provides for impairment of financial assets on the basis
a significant increase in credit risk. The structure of the of the Expected Credit Loss Model or the Prudential
ECL model developed by the company is : norms of NHB whichever is higher.

Stage Assets ii) Non-financial assets

1 Standard Assets/SMA 0* assets The Company assesses at each Balance sheet date
2 SMA 1 and SMA 2 Assets whether there is any objective evidence that a non-
3 Sub-standard, Doubtful and Loss financial asset or a group of non-financial assets
Assets (all NPAs) maybe impaired. If any such indication exists, the
*SMA- Special Mention Accounts.
Company estimates the amount of impairment loss.

The Company assesses periodically and at each An impairment loss is calculated as the difference
balance sheet date whether there is objective between an asset’s carrying amount and recoverable
evidence that a financial asset or group of financial amount. Losses are recognised in the statement
assets is impaired. Impairment allowances represent of profit and loss and reflected in an allowance
management’s best estimate of the losses incurred account. When the Company considers that there
within the loan portfolios at the balance sheet date. are no realistic prospects of recovery of the asset,
They are calculated on a collective basis for portfolios the relevant amounts are written off. If the amount
of loans of a similar nature and on an individual basis of impairment loss subsequently decreases and
for significant loans. The calculation of both collective the decrease can be related objectively to an event
and specific impairment allowances is inherently occurring after the impairment was recognised, then
judgmental. Collective impairment allowances are the previously recognised impairment loss is reversed
calculated using models which approximate the through the statement of profit and loss.
impact of current economic and credit conditions on
i) Employee Benefits
large portfolios of loans. The inputs to these models
are based on historical loss experience with judgement The Company participates in various employee benefit
applied to determine the assumptions (for example the plans. Post-employment benefits are classified as either
value of collateral) used to calculate impairment. The defined contribution plans or defined benefit plans. Under
amount of provision for loan losses is calculated by a defined contribution plan, the Company’s only obligation
multiplying the exposure at default (EAD), Probability is to pay a fixed amount with no obligation to pay further
of Default (PD) and Loss Given Default (LGD). contributions if the fund does not hold sufficient assets
to pay all employee benefits. The related actuarial and
EAD is the amount of outstanding in the account and
investment risks fall on the employee. The expenditure for
the interest accrued. PD has been arrived at on the basis
defined contribution plans is recognized as expense during
of the average of defaults over the past three years in
the period when the employee provides service. Under
the category to which the asset belongs. LGD is the
a defined benefit plan, it is the Company’s obligation to
amount of default expected to occur after considering
provide agreed benefits to the employees. The related
the value of the security offered as collateral.
actuarial and investment risks fall on the Company.
The present value of the defined benefit obligations is
calculated using the projected unit credit method.

148
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

The Company has the following employee defined periods or receive cash at retirement or termination
contribution plans: of employment. The Company records an obligation
for compensated absences in the period in which the
a) Employee State Insurance employee renders the services that increases this
entitlement. The Company measures the expected
The Company’s contribution to state plans namely
cost of compensated absences as the additional
Employee’s State Insurance Scheme is a defined
amount that the Company expects to pay as a result
contribution plan and contribution paid or payable is
of the unused entitlement that has accumulated at the
recognised as an expense in the period in which the
end of the reporting period. The Company recognizes
employee renders services.
accumulated compensated absences based on
b) Employee Pension Scheme actuarial valuation. Non-accumulating compensated
absences are recognized in the period in which the
The Company’s contribution to state plans namely absences occur. The Company recognizes actuarial
Employee’s Pension Scheme is a defined contribution gains and losses immediately in the statement of
plan and contribution paid or payable is recognised profit and loss.
as an expense in the period in which the employee
renders services. Actuarial gains or losses are recognized in other
comprehensive income. Further, the statement of profit
The Company has the following employee defined benefit and loss does not include an expected return on plan
plans: assets. Instead net interest recognized in statement of
profit and loss is calculated by applying the discount
a) Employee Provident Fund.
rate used to measure the defined benefit obligation to
Liability in respect of contribution to Employee the net defined benefit liability or asset. The actual return
Provident fund is estimated on the basis of actuarial on the plan assets above or below the discount rate is
valuation in a manner similar to gratuity liability and is recognized as part of re-measurement of net defined
recognised in the balance sheet net of the fair value of liability or asset through other comprehensive income.
the plan assets.
Re-measurements comprising actuarial gains or
b) Gratuity losses and return on plan assets (excluding amounts
included in net interest on the net defined benefit
The Company has an obligation towards gratuity, liability) are not reclassified to statement of profit and
a defined benefit retirement plan covering eligible loss in subsequent periods.
employees. The plan provides for a lump-sum
payment to employees at retirement, death while d) Leave Travel Concessions:
in employment or on termination of employment
All confirmed employees are entitled to leave
of an amount equivalent to 15 days of last drawn
travel concession once in two years, the liability in
salary for every completed year of service. Vesting
this respect is estimated on the basis of actuarial
occurs upon completion of five years of service. The
valuation in a manner similar to gratuity liability and is
Company make annual contributions to gratuity funds
recognised in the balance sheet.
established as trusts and accounts for the liability
for Gratuity benefits payable in the future based on j) Provisions and Contingencies
actuarial valuation.
Provisions are recognized when the Company has a
c) Compensated absences present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of economic
The employees of the Company are entitled to
benefits will be required to settle the obligation, and
compensated absences. The employees can carry
a reliable estimate can be made of the amount of the
forward a portion of the unutilised accumulating
obligation.
compensated absences and utilise it in future

149
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

The amount recognized as a provision is the best estimate or, when appropriate, a shorter period to the net
of the consideration required to settle the present obligation carrying amount of the financial asset or financial
at the end of the reporting period, taking into account the liability. When calculating the effective interest rate,
risks and uncertainties surrounding the obligation. the Company estimates cash flows considering all
contractual terms of the financial instrument but does
When some or all of the economic benefits required to not consider future credit losses.
settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset, if it is ii) Fees and Commission
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably. Fees income are generated by 2 ways i.e., by direct
proposal and by way of proposals sourced through
Provisions for onerous contracts are recognized when the DSAs.
expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting In case of fees collected on directly sourced proposals,
the future obligations under the contract. Provisions for the entire fees will be amortised over the tenor of the
onerous contracts are measured at the present value of loan and will be recognised as income on the basis of
lower of the expected net cost of fulfilling the contract and Effective Interest Rate calculation.
the expected cost of terminating the contract.
In case of fees collected on DSA sourced proposals,
A contingent liability is a possible obligation that arises fees will be amortised over the tenor of the loan after
from past events whose existence will be confirmed by the reducing the DSA commission portion calculated by
occurrence or non-occurrence of one or more uncertain using weighted average on portfolio basis and the
future events beyond the control of the Company or a amount so derived will be recognised as income on
present obligation that is not recognized because it is not the basis of Effective Interest Rate calculation.
probable that an outflow of resources will be required to
The DSA commission portion thus segregated from
settle the obligation. A contingent liability also arises in
processing fees will be kept in liability account till the
extremely rare cases where there is a liability that cannot
stage of Disbursement. Upon disbursement amount
be recognized because it cannot be measured reliably.
will be accounted under fees income in proportion to
The Company does not recognize a contingent liability but
disbursement. Further, as the same is considered as
discloses its existence in the financial statements.
transaction cost incurred for origination of proposal,
k) Revenue recognition the said income will be recognised as income for the
year and will not be considered for Effective Interest
Revenue is measured at fair value of consideration received Rate calculation.
or receivable. Revenues are recognised when collectability
of the resulting receivables is reasonably assured. iii) Insurance Commission

i) Interest Commission on sale of insurance policies are

recognised on an accrual basis in accordance with the
Interest income and expense are recognised in the agreed rates with the Insurer.
statement of profit or loss using the effective interest
method. The effective interest method is a method iv) Income from Investments
of calculating the amortised cost of a financial asset
Interest Income on Investments in government securities
or a financial liability and of allocating the interest
is recognized as it accrues in the statement of profit and
income or interest expense over the relevant period.
loss, using the effective interest method and interest on
The effective interest rate is the rate that exactly
other investments is recognised on accrual basis.
discounts estimated future cash payments or receipts
through the expected life of the financial instrument

150
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

v) Dividend Income a) Current income tax

Dividend income is recognized in the statement of Current income tax for the current and prior periods
profit and loss on the date that the Company’s right to are measured at the amount expected to be recovered
receive payment is established. from or paid to the taxation authorities based on the
taxable income for the period. The tax rates and tax
vi) Finance expense laws used to compute the current tax amount are
those that are enacted or substantively enacted by
Finance expenses consist of interest expense on loans
the reporting date and applicable for the period. The
and borrowings. Borrowing costs are recognized in
Company offsets current tax assets and current tax
the statement of profit and loss using the effective
liabilities, where it has a legally enforceable right to
interest method.
set off the recognized amounts and where it intends
l) Foreign Currency either to settle on a net basis or to realize the asset
and liability simultaneously.
i) Functional and presentation currency
b) Deferred taxes
Items included in the financial statements of the
Company are measured using the currency of the Deferred tax is recognized using the balance sheet
primary economic environment in which the Company approach. Deferred tax assets and liabilities are
operates (i.e. the “functional currency”). The financial recognised for the future tax consequences of
statements are presented in Indian Rupee, the temporary differences between the carrying values of
national currency of India, which is the functional assets and liabilities and their respective tax bases,
currency of the Company. and unutilised business loss and depreciation carry
forwards and tax credits.
ii) Transactions and Translations
Deferred tax asset is recognized to the extent that it is
Transactions in foreign currencies are recorded at the probable that future taxable income will be available
exchange rate prevailing on the date of transaction. against which the deductible temporary differences,
Foreign currency denominated monetary assets and unused tax losses, depreciation carry-forwards and
liabilities are re-measured into the functional currency unused tax credits could be utilized.
at the exchange rate prevailing on the balance sheet
date. Exchange differences arising on settlement of The carrying amount of deferred tax assets is
transactions are recognised in the statement of profit reviewed at each reporting date and reduced to the
and loss. extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
Foreign currency gains and losses are reported on a the deferred income tax asset to be utilized.
net basis. This includes changes in the fair value of
foreign exchange derivative instruments, which are Deferred tax assets and liabilities are measured at the
accounted at fair value through profit or loss. tax rates that are expected to apply in the period when
the asset is realized or the liability is settled, based on
m) Income tax tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Income tax expense comprises current and deferred taxes.
Income tax expense is recognized in the statement of profit n) Earnings per share (EPS)
and loss except to the extent it relates to items directly
recognized in equity or in other comprehensive income in Basic earnings per share is computed by dividing net profit
which case is also recognised outside the statement of after tax by the weighted average number of equity shares
profit and loss. outstanding during the period.

151
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Diluted EPS is computed by dividing the net profit after tax by Ind AS 12 – Income taxes (amendments relating to
the weighted average number of equity shares considered income tax consequences of dividend and uncertainty
for deriving basic EPS and also weighted average number of over income tax treatments)
equity shares that could have been issued upon conversion
of all dilutive potential equity shares. The amendment relating to income tax consequences of
dividend clarify that an entity shall recognise the income
o) Segments tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the
The Company is engaged mainly in the business of entity originally recognised those past transactions or
Housing finance. This in the context of Ind AS 108 – events. The Company does not expect any impact from
operating segments reporting are considered to constitute this pronouncement.
one reportable segment.
The amendment to Appendix C of Ind AS 12 specifies
p) Recent Accounting Pronouncements that the amendment is to be applied to the determination
of taxable profit (tax loss), tax bases, unused tax
New and amended accounting standards and
losses, unused tax credits and tax rates, when there is
interpretations
uncertainty over income tax treatments under Ind AS 12. It
Issued but not yet effective outlines the following: (1) the entity has to use judgement,
to determine whether each tax treatment should be
The following new accounting standards and considered separately or whether some can be considered
interpretations will become effective for future reporting together. The decision should be based on the approach
periods and may have a significant impact on the income which provides better predictions of the resolution of
statement or net assets of the Group. the uncertainty (2) the entity is to assume that the
taxation authority will have full knowledge of all relevant
Applicable from April 01, 2019
information while examining any amount (3) entity has to
New Accounting Standards consider the probability of the relevant taxation authority
accepting the tax treatment and the determination of
On March 30, 2019, the Ministry of Corporate Affairs taxable profit (tax loss), tax bases, unused tax losses,
(MCA) notified Ind AS 116-Leases which is applicable unused tax credits and tax rates would depend upon the
from April 01, 2019. Ind AS 116 changes the method of probability. The Company does not expect any significant
accounting for leases. Excluding short-term and small impact of the amendment on its financial statements.
ticket leases, the lessee would have to account for all other
leases as a right-to-use asset in their financial statements Ind AS 109 – Prepayment Features with Negative
and recognise a corresponding liability to pay the lessor. Compensation
The Company would be implementing Ind AS 116 with
The amendments relate to the existing requirements in
effect from Q1 2020. In accordance with the transition
Ind AS 109 regarding termination rights in order to allow
provisions of Ind AS 116, differences on adoption would
measurement at amortised cost (or, depending on the
be adjusted to retained earnings as on April 01, 2019.
business model, at fair value through other comprehensive
However, having regard to the significant complexities
income) even in the case of negative compensation
involved and pending adoption of the revised accounting
payments. The Company does not expect this amendment
policies by the Board of Directors, the company is unable
to have any impact on its financial statements.
to make any reasonable estimates regarding the impact of
such initial application of the standard at this stage. Ind AS 19 – Employee Benefits Plan Amendment,
Curtailment or Settlement
Amendments to Accounting Standards
The amendments clarify that if a plan amendment,
On March 30, 2019, the MCA made the following
curtailment or settlement occurs, it is mandatory that the
amendments to accounting standards:
current service cost and the net interest for the period

152
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

after the re-measurement are determined using the an associate or joint venture that form part of the net
assumptions used for the re-measurement. In addition, investment in the associate or joint venture but to which
amendments have been included to clarify the effect the equity method is not applied. The Company does not
of a plan amendment, curtailment or settlement on the currently have any long-term interests in associates and
requirements regarding the asset ceiling. The Company joint ventures.
does not expect this amendment to have any significant
impact on its financial statements. Ind AS 103 – Business Combinations

Ind AS 23 – Borrowing Costs The amendments to Ind AS 103 relating to re-measurement

clarify that when an entity obtains control of a business
The amendments clarify that if any specific borrowing that is a joint operation, it re-measures previously held
remains outstanding after the related asset is ready for its interests in that business. The Company does not expect
intended use or sale, that borrowing becomes part of the any impact from this amendment.
funds that an entity borrows generally when calculating the
capitalisation rate on general borrowings. The Company Ind AS 111 - Joint Arrangements
does not expect any impact from this amendment.
The amendments to Ind AS 111 clarify that when an entity
Ind AS 28 – Long-term Interests in Associates and Joint obtains joint control of a business that is a joint operation,
Ventures the entity does not re-measure previously held interests in
that business. The company will apply the pronouncement
The amendments clarify that an entity applies Ind AS if and when it obtains control / joint control of a business
109 Financial Instruments, to long-term interests in that is a joint operation.

153
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 3 (a) Cash and Cash Equivalents

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Cash on hand 65.07 27.25 43.70
(ii) Balances with Banks 18.49 0.72 8.40
(iii) Fixed deposits with less than 3 months maturity 40,000.00 - -
(iv) Cheques, drafts on hand 68.41 43.92 116.00
(v) Others 1.48 1.53 1.39
Total 40,153.45 73.42 169.49

(b) Balances with Banks other than in (a) above

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Unpaid Dividend (earmarked) 163.76 147.97 124.18
(ii) Share Application Money Pending Allotment (earmarked) 0.11 0.11 47.62
(iii) Balances with Bank held for SLR [refer Note 3.1 below] 1,708.06 1,680.11 1,654.00
Total 1,871.94 1,828.19 1,825.80

3.1 The above deposits are held to comply with the Statutory Liquidity Assets required to be maintained under NHB Act. These carry a floating charge
created in favour of trustees of depositors.

Note 4 Trade Receivables

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Unsecured (considered good)
Insurance commission receivable 13.91 21.05 -
(ii) Receivables Secured (considered good) - - -
(iii) Receivables which have significant increase in Credit Risk - - -
(iv) Receivables - credit impaired - - -
Total 13.91 21.05 -
Less: Allowance for impairment loss - -
Net Total 13.91 21.05 -

154
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 5 Loans
(H in Lakh)
Sl. Particulars As at March 31, 2019
No. Amortised At Fair Value Sub total Total
Cost Through At FVTPL Designated
OCI at FVTPL
A Loans
(i) Loans repayable on Demand - - - - - -
(ii) Term Loans 1,838,371.91 - - - - 1,838,371.91
(iii) Others - - - - - -
Total 1,838,371.91 - - - - 1,838,371.91
Less: Impairment Loss Allowance 9,919.62 - - - - 9,919.62
Total 1,828,452.29 - - - - 1,828,452.29
B.
(i) Secured by tangible assets (refer note 1,838,302.33 - - - - 1,838,302.33
5.1 below)
(ii) Secured by intangible assets - - - - - -
(iii) Covered by Bank/Government - - - - - -
Guarantees
(iv) Unsecured 69.58 - - - - 69.58
Total 1,838,371.91 - - - - 1,838,371.91
Less: Impairment Loss Allowance 9,919.62 - - - - 9,919.62
Total 1,828,452.29 - - - - 1,828,452.29
C.
Loans in India - - - - -
(i) Public Sector - - - - - -
(ii) Others 1,838,371.91 - - - - 1,838,371.91
Total 1,838,371.91 - - - - 1,838,371.91
Less: Impairment Loss Allowance 9,919.62 - - - - 9,919.62
Total 1,828,452.29 - - - - 1,828,452.29
D. Loans outside India
Less: Impairment Loss Allowance - - - - - -
Total - - - - - -

155
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 5 Loans (Contd..)

(H in Lakh)
Sl. Particulars As at March 31, 2018
No. Amortised At Fair Value Sub total Total
Cost Through At FVTPL Designated
OCI at FVTPL
A Loans
(i) Loans repayable on Demand - - - - - -
(ii) Term Loans 1,574,462.32 - - - - 1,574,462.32
(iii) Others - - - - - -
Total 1,574,462.32 - - - - 1,574,462.32
Less: Impairment Loss Allowance 10,061.83 - - - - 10,061.83
Total 1,564,400.49 - - - - 1,564,400.49
B.
(i) Secured by tangible assets (refer note 1,574,383.52 - - - - 1,574,383.52
5.1 below)
(ii) Secured by intangible assets - - - - - -
(iii) Covered by Bank/Government - - - - - -
Guarantees
(iv) Unsecured 78.80 - - - - 78.80
Total 1,574,462.32 - - - - 1,574,462.32
Less: Impairment Loss Allowance 10,061.83 - - - - 10,061.83
Total 1,564,400.49 - - - - 1,564,400.49
C.
Loans in India - - - - -
(i) Public Sector - - - - -
(ii) Others 1,574,462.32 - - - - 1,574,462.32
Total 1,574,462.32 - - - - 1,574,462.32
Less: Impairment Loss Allowance 10,061.83 - - - - 10,061.83
Total 1,564,400.49 - - - - 1,564,400.49
D. Loans outside India
Less: Impairment Loss Allowance - - - - -
Total - - - - - -

156
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 5 Loans (Contd..)

(H in Lakh)
Sl. Particulars As at April 1, 2017
No. Amortised At Fair Value Sub total Total
Cost Through At FVTPL Designated
OCI at FVTPL
A Loans
(i) Loans repayable on Demand - - - - -
(ii) Term Loans 1,331,469.92 - - - - 1,331,469.92
(ii) Others - - - - - -
Total 1,331,469.92 - - - - 1,331,469.92
Less: Impairment Loss Allowance 9,056.11 - - - - 9,056.11
Total 1,322,413.82 - - - - 1,322,413.82
B
(i) Secured by tangible assets (refer 1,331,469.92 - - - - 1,331,469.92
note 5.1 below)
(ii) Secured by intangible assets - - - - - -
(iii) Covered by Bank/Government - - - - - -
Guarantees
(iv) Unsecured 103.17 - - - - 103.17
Total 1,331,573.10 - - - - 1,331,573.10
Less: Impairment Loss Allowance 9,056.11 - - - - 9,056.11
Total 1,322,516.99 - - - - 1,322,516.99
C Loans in India
(i) Public Sector - - - - - -
(ii) Others 1,331,469.92 - - - - 1,331,469.92
Total 1,331,469.92 - - - - 1,331,469.92
Less: Impairment Loss Allowance 9,056.11 - - - - 9,056.11
Total 1,322,413.82 - - - - 1,322,413.82
D Loans outside India - -
Less: Impairment Loss Allowance - - - - - -
Total - - - - - -

Note 5.1 Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or
(c) Bank guarantees, company guarantees or personal Guarantees and/or
(d) Negative lien and/or
(e) Undertaking to create a security.

157
158
Notes forming part of Financial Statements for the year ended March 31, 2019

Note 5.2
Can Fin Homes Ltd

The Company has acquired certain assets under SARFAESI Act which are retained for the purpose of sale under the rules and regulations of SARFAESI Act involving market
value of H1,123.88 (PY 2017-18: H667.62 lakhs), which are part of NPA portfolio aggregating to H810.94(PY 2017-18: H559.68 lakhs) for which necessary provisions have
already been made. These assets are accounted as and when they are realised.

Note 5.3 Classification of loans and provisions made Standard and Non-performing assets is given hereunder.
(H in Lakh)
Particulars Housing loans (including Non Total Loans Provisions required as per Additional Provisions Total
instalments due from Housing NHB Norms Provisions
borrowers) Loans (also refer
Individuals Corporate HL Corporate Non housing HL- Corporate Non Note 40)
bodies Individuals bodies loans Individuals Bodies housing
As on Standard 1,517,601.35 1,135.24 308,108.60 1,826,845.19 3,792.13 8.51 2,707.97 6.38 - - 6,515.00
March 31, Sub-standard 5,067.00 271.80 858.18 6,196.98 760.05 40.77 128.73 32.59 - - 962.14
2019 Doubtful 1 2,393.27 312.18 508.90 3,214.34 598.32 78.05 127.22 26.83 - 8.73 839.14
Doubtful 2 463.32 - 101.60 564.92 185.33 - 40.64 2.38 - - 228.35
Doubtful 3 14.01 - 0.00 14.01 14.01 - 0.00 - - - 14.01
Loss 1,271.80 39.76 49.44 1,360.99 1,271.80 39.76 49.44 - - - 1,360.99
Total 1,526,810.74 1,758.98 309,626.71 1,838,196.43 6,621.63 167.09 3,054.00 68.18 - 8.73 9,919.62

As on Standard 1,403,299.15 17.20 164,252.21 1,567,550.68 3,508.25 0.17 2,032.38 934.20 - - 6,475.00
March 31, Sub-standard 4,422.81 20.93 868.34 5,312.08 663.42 3.14 130.25 597.71 17.79 738.09 2,150.40
2018 Doubtful 1 390.38 - 97.75 488.13 97.59 - 24.44 292.79 - 73.31 488.13
Doubtful 2 142.54 - 14.35 156.89 57.02 - 5.74 85.52 - 8.61 156.89
Doubtful 3 17.88 - - 17.88 17.88 - - - - - 17.88
Loss 614.81 - 158.72 773.53 614.81 - 158.72 - - - 773.53
Total 1,408,869.69 38.13 165,391.37 1,574,299.19 4,958.97 3.31 2,351.53 1,910.22 17.79 820.01 10,061.83
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 5.4

(i) The above classification of loans and provisions to be held are as per the guidelines on prudential norms issued by NHB as on
March 31, 2019.

(ii) Provision of Non-performing assets is required to be maintained as per NHB guidelines on prudential norms to the extent
of H3,334.10 lakhs (Previous year H1,773.01 lakhs) against which the company, by way of prudence and abundant caution
has maintained cumulative provision of H3,404.62 lakhs (Previous year H3586.83 lakhs). The Management has provided an
additional provision of H69.22 Lakhs (PY 2017-18 H2,000.00 Lakhs) during the current year based on their estimate.

The Company holds 29.99 % provision against the Non-Performing Assets.

5.5 As per the National Housing Bank Circulars NHB.HFC.DIR.4/CMD/2012 dated January 19, 2012 & NHB.HFC.DIR.9 /CMD/2013
dated September 06, 2013, and vide notification no. NHB.HFC.DIR.18/MD&CEO/2017 dated August 02, 2017, all housing
finance companies are required to carry a general provision (i) at the rate of 1% of Standard Assets in respect of Commercial
Real Estates other than Residential Housing, (ii) at the rate of 0.75% of Standard Assets in respect of Commercial Real Estate
– Residential Housing and (iii) at the rate of 0.25% of the total outstanding amount of loans which are Standard Assets other
than (i) and (ii) above. Loans to individuals for 3rd dwelling units onwards shall be treated as Commercial Real Estate (CRE)
exposure. National Housing Bank (NHB) vide notification no. NHB.HFC.DIR.18/MD&CEO/2017 dated August 02, 2017 reduced
the provisioning requirement on Standard Individual Housing Loans from 0.40% to 0.25%. In terms of the said notification,
as of March 31, 2019, the Company carries a cumulative provision of H6508.62 lakhs (PY 2017-18 : 5,540.80 lakhs) which is
higher than the revised regulatory requirement of minimum of H6,508.62 Lakhs (PY 2017-18 H5,540.80 Lakhs). Accordingly
the Company has made provision for Standard assets as detailed below.
(H in Lakh)
2018-19 2017-18
Particulars
Outstanding Provisions Outstanding Provisions
(i) Standard Assets – Commercial Real Estate 245,423.36 2,454.23 118,416.08 1,184.16
(ii) Standard Assets – Commercial Real Estate 1,135.24 8.51 97,840.15 978.40
Residential Housing
(iii) Standard Assets – Other than (i) & (ii) above 1,580,286.59 4,045.87 1,351,294.45 3,378.24
Total Standard Assets & Provisions required 1,826,845.19 6,508.62 1,567,550.68 5,540.80
Total Provision held for Standard Assets 6,515.00 6,475.00

159
160
Notes forming part of Financial Statements for the year ended March 31, 2019

Note 5.6 Asset Liability Management (Maturity Pattern of Certain items of Assets & Liabilities) as on March 31, 2019
Can Fin Homes Ltd

Particulars In Days In Months In Years Total

1-14 days 15 – 30 30-60 >2M >3M >6M >1Y >3Y >5y >7Y >10Y
= 3M =6M =12M =3Y =5Y =7Y =10Y
Liabilities
Borrowings from Banks 123,949.01 40,694.44 3,015.87 7,590.87 28,801.19 35,102.38 165,409.52 165,409.52 142,914.19 170,199.17 2,499.58 885,585.75
Borrowings from NHB 7,564.37 - - - 7,443.00 14,576.16 50,532.95 42,055.26 37,710.93 18,440.03 18,800.00 197,122.70
Market Borrowings-
Deposits 560.50 497.24 1,571.14 1,208.00 3,667.40 7,816.75 9,970.34 776.28 41.82 - - 26,109.48
NCD/CP 12,500.00 30,000.00 44,000.00 30,000.00 10,000.00 211,500.00 122,200.00 100,000.00 10,000.00 - - 570,200.00
Foreign Currency Liabilities - - - - - - - - - - - -
Assets
Advances 9,198.69 - 9,236.46 9,823.97 28,657.79 60,081.06 246,295.84 248,326.94 259,569.32 342,689.08 624,317.28 1,838,196.43
Investments 40,000.00 - - 520.00 1,005.06 683.01 - - 100.00 1,000.00 - 43,308.06
Foreign Currency Assets - - - - - - - - - - - -
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 6 Investments
(H in Lakh)
Sl. Particulars As at March 31, 2019
No. Amortised At Fair Value Sub total Others Total
Cost Through At FVTPL Designated
OCI at FVTPL
(i) Mutual Funds - - - - - - -
(ii) Government Securities 1,006.50 - - - - - 1,006.50
(iii) Other Approved Securities 600.00 - - - - - 600.00
(iv) Others - - - - - - -
(A) Total 1,606.50 - - - - - 1,606.50
(i) Investments outside India - - - - - - -
(ii) Investments in India 1,606.50 - - - - - 1,606.50
(B) Total 1,606.50 - - - - - 1,606.50
(A) - (B) - - - - - - -
Less: Impairment Loss Allowance - - - - - - -
Total 1,606.50 - - - - - 1,606.50

(H in Lakh)
Sl. Particulars As at March 31, 2018
No. Amortised At Fair Value Sub total Others Total
Cost Through At FVTPL Designated
OCI at FVTPL
(i) Mutual Funds - - - - - - -
(ii) Government Securities 1,499.75 - - - - - 1,499.75
(iii) Other Approved Securities 100.00 - - - - - 100.00
(ix) Others - - - - - - -
(A) Total 1,599.75 - - - - - 1,599.75
(i) Investments outside India - - - - - - -
(ii) Investments in India 1,599.75 - - - - - 1,599.75
(B) Total 1,599.75 - - - - - 1,599.75
(A) - (B) - - - - - - -
Less: Impairment Loss Allowance - - - - - - -
Total 1,599.75 - - - - - 1,599.75

161
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

(H in Lakh)
Sl. Particulars As at April 1, 2017
No. Amortised At Fair Value Sub total Others Total
Cost Through At FVTPL Designated
OCI at FVTPL
(i) Mutual Funds - - - - - - -
(ii) Government Securities 1,499.13 - - - - - 1,499.13
(iii) Other Approved Securities 100.00 - - - - - 100.00
(ix) Others - - - - - - -
(A) Total 1,599.13 - - - - - 1,599.13
(i) Investments outside India - - - - - - -
(ii) Investments in India 1,599.13 - - - - - 1,599.13
(B) Total 1,599.13 - - - - - 1,599.13
(A) - (B) - - - - - - -
Less: Impairment Loss Allowance - - - - - - -
Total 1,599.13 - - - - - 1,599.13

Note 6.1

The above investments are made to comply with the Statutory Liquidity Assets to be maintained under NHB Act. These carry a
floating charge created in favour of trustees of depositors. The total investments under Statutory Liquidity Assets include H1,606.50
lakhs (PY 2017-18 H1,599.75 lakhs) [valued at amortised cost] in Government securities and other approved securities and
H1,708.06.11 lakhs (PY 2017-18 H1,680.11 lakhs) in deposits with Nationalised Bank.

Note 6.2

Presentation of Investments as per Notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 09, 2017 issued by the
National Housing Bank.
(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Value of Investments
i) Gross Value of investments (valued at amortised cost)
a) In India 1,606.50 1,599.75
b) Outside India - -
ii) Provisions for Depreciation
a) In India - -
b) Outside India - -
iii) Net value of Investments (valued at amortised cost)
a) In India 1,606.50 1,599.75
b) Outside India - -
Movement of provisions held towards depreciation on investments
i) Opening Balance - -
ii) Add Provisions made during the year - -
iii) Less Write-off / Write-back of excess provisions during the year - -
iv) Closing Balance - -

162
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 7 Trade Receivables

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Security deposits 216.03 182.76 162.62
(ii) Interest income accrued on investment 35.88 20.81 21.58
(iii) Staff advance 37.81 27.82 29.76
Total 289.73 231.40 213.96

Note 8
8.1 Current Tax Assets (Net)
(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Advance Income tax (net of provision)* 2,062.39 1,380.86 289.20
Total 2,062.39 1,380.86 289.20
*Includes amounts paid/adjusted under dispute.

8.2 Deferred Tax Assets (Net)

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
Deferred Tax Assets on:
(i) Property, plant and equipment - 88.62 57.72
(ii) Expected Credit Loss Provision 407.26 496.93 385.91
(iii) Provision for employee benefits 298.54 952.54 731.32
(iv) Financial assets/liabilities carried at amortised cost 1,753.66 785.46 -
Total (A) 2,459.45 2,323.56 1,174.95
Deferred Tax Liabilities on:
(i) Property, plant and equipment 58.70 - -
(ii) Financial assets/liabilities carried at amortised cost - - 80.97
Total (B) 58.70 - 80.97
Total (A) - (B) 2,400.75 2,323.56 1,093.98

163
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 9 Property, Plant and Equipment

(H in Lakh)
Particulars Tangible Assets
Land - Buildings Furniture Computers Office Electrical Vehicles Vehicles Total
Free Hold and equipment equipment - cars - Two
Fixtures wheelers
Gross Carrying Value or Deemed Cost :
As at April 01, 2018 98.69 207.45 998.28 629.89 69.04 649.02 81.47 102.41 2,836.25
Additions - - 125.61 59.69 4.70 111.42 15.05 16.25 332.72
Disposals/Adjustments - - 7.88 12.76 0.82 20.71 4.15 3.27 49.59
As at March 31, 2019 98.69 207.45 1,116.01 676.82 72.92 739.73 92.37 115.39 3,119.37
Accumulated Depreciation
As at April 01, 2018 - 124.58 615.63 580.73 53.45 385.42 57.63 61.82 1,879.25
Charge for the period - 4.98 120.38 52.89 8.37 86.37 10.72 13.18 296.88
Disposals/Adjustments - - 5.23 12.71 0.78 16.46 3.78 2.96 41.92
As at March 31, 2019 - 129.57 730.78 620.91 61.04 455.32 64.56 72.04 2,134.22
Net Carrying Value as at March 31, 98.69 77.88 385.23 55.91 11.88 284.41 27.81 43.36 985.16
2019
Gross Carrying Value or Deemed Cost :
As at April 01, 2017 100.27 207.45 879.98 589.81 66.67 591.59 74.99 99.84 2,610.62
Additions - - 123.04 40.34 2.75 71.50 10.96 8.45 257.03
Disposals/Adjustments 1.59 - 4.75 0.26 0.38 14.07 4.49 5.87 31.40
As at March 31, 2018 98.69 207.45 998.28 629.89 69.04 649.02 81.47 102.41 2,836.25
Accumulated Depreciation
As at April 01, 2017 - 119.27 500.62 517.97 41.48 310.85 50.62 52.84 1,593.65
Charge for the period - 5.31 118.84 63.02 12.32 84.88 10.73 13.56 308.66
Disposals/Adjustments - - 3.83 0.26 0.34 10.32 3.73 4.58 23.06
As at March 31, 2018 - 124.58 615.63 580.73 53.45 385.42 57.63 61.82 1,879.25
Net Carrying Value as at March 31, 98.69 82.87 382.64 49.17 15.59 263.61 23.84 40.60 957.00
2018

1. Freehold land includes value of undivided share in the land in case of certain properties.

Note 10 Other Non-financial Assets

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Advance to employees 2.98 1.62 1.06
(ii) Advance to capital vendors 6.00 - -
(iii) GST Input Credit 35.29 17.27 -
(iv) Others 103.56 118.38 176.14
Total 147.84 137.27 177.20

164
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 11 Payables
(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
Trade Payables:
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 215.89 869.61 232.67
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
Total 215.89 869.61 232.67

11.1 Trade payables include HNil (Previous Year HNil) payable to “Suppliers” registered under The Micro, Small & Medium Enterprises
Development Act 2006. No interest has been paid by the company during the year to the “suppliers” covered under The Micro,
Small & Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have
responded to enquiries made by the company for this purpose.

165
166
Notes forming part of Financial Statements for the year ended March 31, 2019

Note 12 Debt Securities

(H in Lakh)
Can Fin Homes Ltd

Sl. Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
No. At Amortised At Designated Total At Amortised At Designated Total At Amortised At Designated Total
Cost FVTPL at FVTPL Cost FVTPL at FVTPL Cost FVTPL at FVTPL
(i) Liability component - - - - - - - - - - - -
of compound
financial instruments
(ii) Others:
Secured Redeemable 335,015 - - 479,827 - - 479,827 359,757 - - 359,757
Non Convertible 335,015
Non-Cumulative
Debentures (refer
Note 12.1 below)
Unsecured 10,000 - - 10,000 10,000 - - 10,000 10,000 - - 10,000
Redeemable
Non Convertible
Debenture (refer
Note 12.2 below)
(A) Total 345,015 - - 345,015 489,827 - - 489,827 369,757 - - 369,757
Debt securities in 345,015 345,015 489,827 489,827 369,757 369,757
India
Debt securities - - - - - - - - - - - -
outside India
(B) Total 345,015 - - 345,015 489,827 - - 489,827 369,757 - - 369,757
(A) - (B) - - - - - - - - - - - -

12.1 During the year the Company has not issued any Secured Redeemable Non-Convertible Non-Cumulative Taxable Debentures (previous year H1,40,000 lakhs). These
debentures are secured by way of floating charge on the assets i.e., loan receivables specifically earmarked for the purpose.
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

The details of the Secured Redeemable Non Convertible Taxable Debentures as on March 31, 2019 are as follows:

Debentures Date of Issue Date of Rate of Rupees In

Redemption Interest lakhs
8.60% SRNCD 2015 Series 7 7-Jan-16 6-Apr-19 8.60% 12,500.00
8.85% SRNCD 2015 Series 8 17-Feb-16 17-May-19 8.85% 16,500.00
8.55% SRNCD 2015 Series 10 27-May-16 27-Aug-19 8.55% 10,000.00
7.85% SRNCD 2016 Series 1 16-Sep-16 16-Dec-19 7.85% 30,000.00
7.73% SRNCD 2016 Series 2 24-Oct-16 24-Jan-20 7.73% 44,000.00
7.57% SRNCD 2016 Series 4 12-Jan-17 12-Apr-20 7.57% 40,000.00
7.68% SRNCD 2016 Series 5 27-Feb-17 27-May-20 7.68% 20,000.00
8.69% SRNCD 2015 Series 2 10-Sep-15 10-Sep-20 8.69% 10,000.00
7.32% SRNCD 2017- Series 1 26-Jul-17 26-Oct-20 7.32% 40,000.00
7.44% SRNCD 2017 Series 2 17-Oct-17 17-Jan-21 7.44% 20,000.00
7.64% SRNCD 2017 Series 3 29-Nov-17 26-Feb-21 7.64% 20,000.00
7.77% SRNCD 2016- Series 3 15-Nov-16 15-Nov-21 7.77% 12,200.00
7.89% SRNCD 2016 Series 6 18-May-17 18-May-22 7.89% 60,000.00
Total 335,200.00

12.2 Further, the Company has issued Unsecured Debentures in the nature of Tier II capital worth H10,000 lakhs in the financial
year 2014-15 for a term of 10 years through private placement. These Debentures are subordinated to present and future
senior indebtedness of the Company and qualify as Tier II Capital under the National Housing Bank (NHB) guidelines for
assessing capital adequacy. Based on the balance term to maturity as at March 31, 2019, 100% of the book value of the
subordinated debt is considered as Tier II Capital for the purpose of Capital Adequacy computation.

The details of the Unsecured Non Convertible Debentures in the nature Tier II capital as on March 31, 2019 are as follows:

Particulars Date of Issue Date of Rate of Amount

Redemption Interest in lakhs
8.94% CFHL UNCD 2014 3-Dec-14 3-Dec-24 8.94% 10,000.00

167
168
Notes forming part of Financial Statements for the year ended March 31, 2019

Note 13 Borrowings (other than debt Securities)

(H in Lakh)
Can Fin Homes Ltd

Sl. Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
No. At Amortised At Designated Total At Amortised At Designated Total At Amortised At Designated Total
Cost FVTPL at FVTPL Cost FVTPL at FVTPL Cost FVTPL at FVTPL
(a) Term Loans - -
Secured
(i) from Banks [1] & [2] 630,904.75 - - 630,904.75 305,409.54 - - 305,409.54 386,312.83 - - 386,312.83
(ii) from other parties - - - - - - - - - -
Unsecured -
(i) from Banks 42,855.85 - - 42,855.85 49,999.99 - - 49,999.99 - - - -
(ii) from others - - - - - - - - - -
(b) Deferred Payment
Liabilities:
Commercial Paper (refer 215,610.71 - - 215,610.71 207,561.56 - - 207,561.56 232,061.75 - - 232,061.75
note 13.4 below)
(c) Loans from related parties
- From Canara Bank
- Term Loans (Secured) 250,000.00 - - 250,000.00 199,999.97 - - 199,999.97 119,902.31 - - 119,902.31
- Loans repayable on 11,106.31 - - 11,106.31 27,505.30 - - 27,505.30 25,109.54 - - 25,109.54
demand (Unsecured)
- Loans repayable on 71,645.03 - - 71,645.03 29,299.43 - - 29,299.43 24,170.32 - - 24,170.32
demand (Secured)
(d) Finance lease obligations - - - - - - - - - - - -
(e) Liability component of - - - - - - - - - - - -
compound financial
instruments
(f) Loans repayable on -
demand
 Notes forming part of Financial Statements for the year ended March 31, 2019

Note 13 Borrowings (other than debt Securities) (Contd..)

(H in Lakh)
Sl. Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
No. At Amortised At Designated Total At Amortised At Designated Total At Amortised At Designated Total
Cost FVTPL at FVTPL Cost FVTPL at FVTPL Cost FVTPL at FVTPL
Secured:
(i) from Banks [1] - - - - - - - - - - - -
(ii) from other parties - - - - - - - - - -
Unsecured -
(i) from Banks [1] 76,196.50 - - 76,196.50 59,668.87 - - 59,668.87 6,773.40 - - 6,773.40
(g) Other loans - - - - - - - - - - - -
(A) Total 1,298,319.16 - - 1,298,319.16 879,444.67 - - 879,444.67 794,330.15 - - 794,330.15
Borrowings in India 1,298,319.16 1,298,319.16 879,444.67 879,444.67 794,330.15 794,330.15
Borrowings outside India - - - - - - - - - - - -
(B) Total 1,298,319.16 - - 1,298,319.16 879,444.67 - - 879,444.67 794,330.15 - - 794,330.15
(A) - (B) - - - - - - - - - - - -

[1] Borrowings from Banks which are also related parties are shown separately under Loan from related parties in Sl No. (c) above
[2] Includes borrowings outstanding aggregating to H1,97,122.70 lakhs from National Housing Bank.

13.1 Secured loans include borrowings from National Housing Bank, Canara Bank, HDFC Bank, and State Bank of India are secured by way of specific charge on book
debts, outstanding, receivables, etc.,/ promissory notes and / or a negative lien on assets of the Company. The tenure of the Long term borrowings are more than one
year and upto 15 years and that of short term borrowings is less than 1 year.

13.2 There is no amount of continuing default as on the Balance Sheet date in terms of repayment of loans & interest on Borrowings of the Company.

169
Financial Statements | Annual Report 2018-19
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

13.3 Details of Rate of Interest and Terms of Repayment in case of term loans:

Sl. Name of the Bank Facility Sanctioned Amt Date of Sanction Interest Terms of Repayment
No (J in lakhs) Rate
1 Canara Bank Term loan 50,000 November 02, 2018 8.35% Each Tranche Repayable in 10 equal
yearly installments after a moratorium/
repayment holiday period of 12 months
from the date of first disbursement
2 Canara Bank Term loan 50,000 February 27, 2018 8.35% Each Tranche Repayable in 10 equal
yearly installments after a moratorium/
repayment holiday period of 12 months
from the date of first disbursement
3 Canara Bank Term loan 150,000 August 21, 2017 8.35% Each Tranche Repayable in 10 equal
yearly installments after a moratorium/
repayment holiday period of 12 months
from the date of first disbursement
4 State Bank of India Term loan 50,000 April 12, 2016 8.25% Repayable in 40 quarterly instalments
of H12.50 crores
5 State Bank of India Term loan 100,000 April 23, 2018 8.25% Repayable in 40 quarterly instalments
of H25.00 crores
6 State Bank of India Term loan 50,000 January 29, 2018 8.25% Repayable in 40 quarterly instalments
of H12.50 crores
7 State Bank of India Term loan 18,000 January 29, 2018 8.25% Repayable in 40 quarterly instalments
of H4.50 crores
8 State Bank of India Term loan 100,000 December 31, 2018 8.35% Repayable in 40 quarterly instalments
of H25.00 crores
9 HDFC Bank Term loan 30,000 January 20, 2018 6.95% 28 Equal Quarterly Installments
10 HDFC Bank Term loan 25,500 May 16, 2018 7.80% 28 Equal Quarterly Installments
11 HDFC Bank Term loan 50,000 March 07, 2019 8.40% Equal Monthly Principal Installments
12 Corporation Bank Term loan 25,000 March 27, 2019 8.50% 10 Equal Annual installment of H25
crores
13 Federal Bank Term loan 25,000 February 08, 2018 7.90% 28 Equal Quarterly Installments
14 Federal Bank Term loan 25,000 February 08, 2018 7.90% 28 Equal Quarterly Installments

13.4 Commercial Paper of the Company have a maturity value of J2,25,000.00 lakhs (previous year H2,15,000.00 lakhs),
the details of the are as follows:

Sl. Value Date Due Date Period in days Discount Rate Face value
No in lakhs
1 November 05, 2018 October 31, 2019 360 9.10% 37,500.00
2 November 15, 2018 May 14, 2019 180 8.75% 27,500.00
3 January 02, 2019 June 28, 2019 177 8.28% 30,000.00
4 January 03, 2019 December 26, 2019 357 8.62% 30,000.00
5 January 30, 2019 April 30, 2019 90 7.42% 30,000.00
6 February 08, 2019 February 07, 2020 364 8.37% 20,000.00
7 February 14, 2019 February 14, 2020 365 8.25% 20,000.00
8 March 08, 2019 February 25, 2020 354 8.25% 30,000.00
Total 225,000.00

170
 Notes forming part of Financial Statements for the year ended March 31, 2019

Note 14 Deposits
(H in Lakh)
Sl. Particulars As at March 31, 2019 As at March 31, 2018 As at April 1, 2017
No. At At Designated Total At At Designated Total At At Designated Total
Amortised FVTPL at FVTPL Amortised FVTPL at FVTPL Amortised FVTPL at FVTPL
Cost Cost Cost
Deposits
(i) Public Deposits [refer note 14.1 22,108.14 - - 22,108.14 20,441.11 - - 20,441.11 18,698.10 - - 18,698.10
below]
(ii) From Banks - - - - - - - - - - - -
(iii) From Others:
Exempted Deposits 4,001.34 - - 4,001.34 2,388.87 - - 2,388.87 3,966.78 - - 3,966.78
Total 26,109.48 - - 26,109.48 22,829.98 - - 22,829.98 22,664.88 - - 22,664.88

14.1 As per the directions of the National Housing Bank, the Company has created floating charge on Statutory Liquid Assets (Investments in Govt. Securities (including
other approved securities) and Deposits in Commercial Banks) in favour of the Trustees of the depositors in a manner prescribed by the National Housing Bank in terms
of sub-sections (1) & (2) of section 29B of the NHB Act, 1987 [ Refer Note 3.1 and 6.1].

171
Financial Statements | Annual Report 2018-19
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 15 Other Financial Liabilities

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Interest accrued on borrowings 18,564.86 22,798.83 15,050.65
(ii) Unpaid matured deposits and interest accrued thereon [refer 1,981.94 881.23 2,009.45
Note 15.1 below]
(iii) Unpaid Dividend (refer 15.2 below) 163.76 147.97 125.98
(iv) Due to customers/borrowers 86.35 77.17 42.15
Total 20,796.92 23,905.21 17,228.23

15.1 As required under Section 125 of the Companies Act, 2013, the Company has transferred H5.19 lakhs (Previous Year H10.41
lakhs) to Investor Education and Protection Fund (IEPF) during the year as of March 31, 2019, except to the extent of H59.34
lakhs (previous year H56.37 lakhs) in respect of claims that are disputed. As of March 31, 2019, no amount was due for transfer
to the IEPF.

15.2 There are no dividends which are pending to be transferred to Investor Education and Protection Fund as per Sec 125 of the
Companies Act, 2013 as at year end.

Note 16 Provisions
(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Provision for Income Tax (net of advance tax) 154.24 344.42 -
(ii) Provision for Employees Benefit (Refer Note 36) 1,608.45 2,117.45 2,113.04
(iii) Provision for contingencies 900.97 900.97 600.00
Total 2,663.65 3,362.84 2,713.04

Note 17 Other Non Financial Liabilities

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Revenue received in advance 5,518.83 2,765.05 309.45
(ii) Statutory Dues 195.63 270.95 125.12
(iii) Other Payables:
(i) Cheques pending presentation 68.41 45.38 116.00
(ii) Cheques pending realisation 38.00 54.99 259.27
(iii) Time barred cheques 115.44 80.80 110.46
(iv) Other monies received in advance 119.17 309.34 89.95
(v) Others 589.71 488.01 493.39
Total 6,645.21 4,014.51 1,503.64

172
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 18 Equity Share Capital

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Authorised:
35,00,00,000 Equity Shares of H2 each (PY 2017-18: 7,000.00 7,000.00 7,000.00
35,00,00,000 Equity Shares of H2 each and PY 2016-17:
7,00,00,000 Equity Shares of H10 each)
(ii) Issued and Subscribed:
13,32,27,875 Equity Shares of H2 each (PY 2017-18: 2,664.56 2,664.56 2,664.56
13,32,27,875 Equity Shares of H2 each and PY 2016-17:
2,66,45,575 Equity Shares of H2 each)
(iii) Paid up:
13,31,54,125 Equity shares of H2 each (PY 2017-18: 2,663.08 2,663.08 2,662.02
13,31,54,125 Equity shares of H2 each and PY 2016-17:
2,66,20,242 Equity shares of H10 each)
Add : Forfeited Shares 0.23 0.23 0.23
Total 2,663.31 2,663.31 2,662.25

As at March 31, 2019 As at March 31, 2018 As at April 01, 2017

Particulars No. No. No.
J in lakhs J in lakhs J in lakhs
(of J2 each) (of J2 each) (of J2 each)
Equity Shares outstanding as at the 13,31,54,125 2,663.31 13,31,01,210 2,662 2,66,20,242 2,662
beginning of the year
Add: Equity shares issued during the - - 52,915 1.06 - -
year (Refer Note 18.2)
Equity Shares outstanding as at the 13,31,54,125 2,663.31 13,31,54,125 2,663.31 2,66,20,242 2,662.25
end of the year

As at March 31, 2019 As at March 31, 2018 As at April 01, 2017

% of shares % of shares % of shares
Particulars No. No. No.
held to held to total held to
(of J2 each) (of J2 each) (of J2 each)
total shares shares total shares
Canara Bank 3,99,30,365 29.99 3,99,30,365 29.99 79,86,358 30.00
Chhattisgarh Investments Ltd 1,19,79,411 9.00 1,30,13,105 9.78 26,70,000 10.03
Caladium Investment Pte Ltd 1,79,04,245 13.45 1,79,04,245 13.45 35,80,849 13.45

173
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

18.1 During the Financial Year 2017-18 the Company has subdivided the face value of its equity shares from H10 each to H2
each w.e.f October 13, 2017 (Record date). In view of the same, the number of equity shares under Authorised Capital has
increased to 35,00,00,000 shares of H2 each, the number of equity shares under Issued & Subscribed Capital has increased to
13,32,27,875 shares of H2 each and the number of equity shares under Paid up Capital has increased to 13,31,01,210 shares
of H2 each. Consequent to sub-division and for the reasons stated in Note no. 18.2 the aggregate number of Paid up Equity
shares of the Company as at March 31, 2018 stands at 13,31,54,125 shares of H2 each.

18.2 During the financial year 2017-18, 52,915 equity shares of H2 each (in lieu of 10,583 equity shares of H10 each, which were
kept in abeyance during the Rights Issue made by the Company in March 2015) were allotted as per the judgement of Hon’ble
High Court of Kerala.

18.3 Terms and rights attached to Equity Shares: The Company has one class of Equity shares having a face value of H2/- per share
and each shareholder is eligible for one vote per share held. In the event of liquidation the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholdings.

18.4 For the period of five years immediately preceding the FY 2018-19

(A) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received
in cash is NIL
(B) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares is NIL
(C) Aggregate number and class of shares bought back is NIL

Note 19 Other Equity

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Special Reserve (created as per requirement of Income
Tax Act - Section 36(1)(viii)):
Balance at the beginning of the year 45,421.00 37,121.00 30,721.00
Transferred from Profit and Loss Account (refer Note 19.1 8,739.45 8,300.00 6,400.00
below)
Balance at the end of the year (A) 54,160.45 45,421.00 37,121.00
Cumulative Tax effect on special reserve at the beginning of 5,087.38 2,214.91 -
the year
Tax effect for the year 3,053.91 2,872.46 2,214.91
Cumulative Tax effect at the end of the year (B) 8,141.29 5,087.38 2,214.91
Total (A)+(B) 62,301.74 50,508.38 39,335.91
(ii) General Reserve
Balance at the beginning of the year 49,547.80 37,547.80 15,655.21
Add/ (Less):- Adjustment to retained earnings due to - - 12,692.59
adoption of Ind AS
Add: Transferred from Profit and Loss Account 5,935.29 12,000.00 9,200.00
Balance at the end of the year 55,483.09 49,547.80 37,547.80

174
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 19 Other Equity (Contd..)

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(iii) Statutory Reserve (created as per the requirement of
Section 29C of the NHB Act, 1987)
Balance at the beginning of the year 18,600.00 12,500.00 7,700.00
Add: Transferred from Profit and Loss Account (refer Note 5,935.29 6,100.00 4,800.00
19.1 below)
Balance at the end of the year 24,535.29 18,600.00 12,500.00
(iv) Securities Premium Reserve
Balance at the beginning of the year 27,297.54 27,250.97 27,250.97
Add: Received during the year - 46.57 -
Balance at the end of the year 27,297.54 27,297.54 27,250.97
(v) Profit and Loss Account
Balance at the beginning of the year 81.71 1,025.54 114.57
Add: Profit for the year 29,676.43 28,661.43 21,310.97
Add/ (Less):- Transferred to Special Reserve (refer Note 19.1 (8,739.45) (8,300.00) (6,400.00)
below)
Add/ (Less):- Transferred to Statutory Reserve (refer Note (5,935.29) (6,100.00) (4,800.00)
19.1 below)
Add/ (Less):- Transferred to General Reserve (5,935.29) (12,000.00) (9,200.00)
Add/ (Less):- Dividend (refer Note 19.2 & 19.3 below) (2,663.08) (2,663.08) -
Add/ (Less):- Corporate Dividend Tax thereon (547.40) (542.18) -
Balance at the end of the year 5,937.63 81.71 1,025.54
(vii) Share application money pending allotment
Balance at the beginning of the year - 47.62 47.62
Less: Allotted during the year - (47.62) -
Balance at the end of the year - - 47.62
Total 175,555.29 146,035.42 117,707.85

19.1: As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profits
every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under
Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible transfer u/s 29C of the NHB Act, 1987 also.
The Company has transferred a sum of H8,739.45 lakhs (previous year H8,300 lakhs) to Special Reserve which is in terms of
Section 36(1)(viii) of the Income Tax Act, 1961 and H5,935.29 lakhs (previous year H6,100 lakhs) to Additional Reserve u/s 29C
of the NHB Act, 1987 during the FY 2018-19.

19.2: The Company has paid dividend of H2/- per share on the equity shares of face value of H2/- each pertaining to FY 2017-18,
post approval by the members in the 31st AGM held on 18th July, 2018.

19.3: The Board of Directors, have recommended final dividend of H2/- per equity share, this dividend will be paid after the approval
of the members at the ensuing AGM. According to the requirements of Ind AS 10- Events occurring after Balance sheet date,
the dividend declared and tax thereon shall only be recognised as a liability in the books of account in the year in which the
dividends are declared on approval by members. The total estimated dividend on equity shares and dividend tax to be paid is
H2,663.08 lakhs and H547.40 lakhs respectively.
175
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

19.4 Presentation of Reserve Fund as per NHB’s policy circular reference NHB(ND)/ DRS/ Pol.Circular.61/ 2013-14 dated April 07,
2014 and Notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 09, 2017 issued by National Housing Bank.
(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Statutory Reserve (As per section 29C of the National Housing Bank Act, 1987)
Opening Balance 18,600.00 12,500.00
Additions during the year 5,935.29 6,100.00
Appropriations during the year - -
Closing Balance 24,535.29 18,600.00

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Balance at the beginning of the year
a) Statutory Reserve u/s 29C of the National Housing Bank Act, 1987 18,600.00 12,500.00
b) Amount of Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 taken into 45,421.00 37,121.00
account for the purposes of Statutory Reserve u/s 29C of the NHB Act, 1987
(excluding tax effect)
Total
Addition/ Appropriation / Withdrawal during the year
Add:
a) Amount transferred u/s 29C of the NHB Act, 1987 5,935.29 4,800.00
b) Amount of special reserve u/s 36(1)(viii) of Income Tax Act, 1961 taken into 8,739.45 8,300.00
account for the purpose of Statutory Reserve u/s 29C of the NHB Act, 1987.
Less:
a) Amount appropriated from the Statutory Reserve u/s 29C of the NHB Act, - -
1987
b) Amount withdrawn from the Special Reserve u/s 36(1)(viii) of Income Tax Act, - -
1961 which has been taken into account for the purpose of provision u/s 29C
of the NHB Act, 1987.
Balance at the end of the year
a) Statutory Reserve u/s 29c of the National Housing Bank Act, 1987 24,535.29 17,300.00
b) Amount of Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 taken into 54,160.45 45,421.00
Account for the purpose of Statutory Reserve u/s 29C of the NHB Act, 1987.

176
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 20 Interest Income

(H in Lakh)
Year ended March 31, 2019 Year ended March 31, 2018
Sl. On Financial assets measured On Financial assets measured
Particulars
No. At At Amortised At At At Amortised At
FVTOCI Cost FVTPL FVTOCI Cost FVTPL
(i) Interest on Loans - 169,728.39 - - 148,845.28 -
(ii) Interest income from investments - 100.90 - - 97.96 -
(iii) Interest on deposits with Banks - 125.60 - - 115.20 -
Total - 169,954.89 - - 149,058.44 -

Note 21 Fee and Commission Income

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(i) Processing and other fee 2,660.54 2,706.65
(ii) Insurance commission income 79.68 19.49
Total 2,740.22 2,726.14

Note 22 Other Income

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(i) Profit on sale of fixed assets 4.58 11.77
(ii) Provision no longer required written back 2.15 274.78
(iii) Dividend Income from Investment in Mutual funds - 31.27
(iv) Bad debts recovered 432.71 95.70
Total 439.45 413.52

Note 23 Finance Costs

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
Financial Instruments recognised at Amortised cost:
(i) Interest on deposits 1,813.65 1,870.25
(ii) Interest on borrowings 80,569.69 57,718.04
(iii) Interest on debt securities 34,200.67 37,731.61
(iv) Other charges 325.90 782.55
Total 116,909.92 98,102.45

177
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 24 Fees and Commission Expense

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(i) Direct Selling Agents' Commission 1,035.87 916.05
(ii) CIBIL and other Fee 49.23 40.51
Total 1,085.10 956.57

Note 25 Employee Benefits Expenses

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(i) Salaries and wages 3,613.88 3,516.97
(ii) Contribution to provident and other funds 486.01 912.02
(iii) Staff welfare expenses 27.60 41.22
(iv) Others 12.43 11.34
Total 4,139.92 4,481.55

Note 26 Depreciation Expense

(H in Lakh)
Year ended Year ended
Particulars
March 31, 2019 March 31, 2018
Depreciation on plant, property and equipment (refer Note 9) 296.88 308.66
Total 296.88 308.66

Note 27 Other Expenses

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(i) Rent, taxes and energy costs 1,330.72 1,158.67
(ii) Repairs and maintenance 97.88 90.16
(iii) Communication costs 121.01 125.23
(iv) Printing and stationery 55.90 42.91
(v) Advertisement and publicity 117.42 130.76
(vi) Director’s sitting fees 22.70 15.60
(vii) Auditor’s fees and expenses (refer Note 27.1 below) 57.86 43.56
(viii) Legal and professional charges 217.37 172.96
(ix) Corporate Social Responsibility Expenses (refer Note 45) 606.24 337.85

178
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 27 Other Expenses (Contd..)

(H in Lakh)
Sl. Year ended Year ended
Particulars
No. March 31, 2019 March 31, 2018
(x) Insurance charges 53.18 56.38
(xi) Travelling and conveyance 240.83 185.63
(xii) Bank charges 22.14 22.96
(xiii) General expenses 38.92 35.02
(xiv) Rates and tax 157.71 160.75
(xv) Professional fee- IBS (refer Note 27.2 below) 354.60 329.23
(xvi) Miscellaneous expenses 148.56 122.82
Total 3,643.04 3,030.47

27.1 Auditor’s remuneration (net of GST)

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Audit Fees (Including Branch Statutory Auditors fees and Tax audit) 48.16 37.36
Tax Matters 0.3 -
Other Services (Certification etc.,) 2.5 1.46
Out of Pocket Expenses 6.90 4.75
Total 57.86 43.56

27.2 The Company has entered into lease cum licence agreement with M/s Encore Theme Technologies Pvt. Ltd., for implementation
of Integrated Business Suit (IBS) software. The expenditure incurred in this regard amounting to H354.60 lakhs (Previous Year
H329.23 lakhs) is charged off to the P & L account under Professional fees – IBS.

Note 28 Operating Lease

Future minimum lease payments under non- cancelable operating leases

The Company has various operating leases, mainly for office buildings. Lease rental expense under non-cancellable operating
lease during the year ended March 31, 2019 amounted to H1,144.24 lakhs (for the year ended March 31, 2018 : H991.21 lakhs,
for the year ended March 31, 2017 : H796.80 lakhs). The company does not have any operating lease which has minimum lock-
in period clause during the tenor of the rental agreements and hence there are no future minimum lease payments under non-
cancellable operating lease at the end of the year.

179
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 29 Financial Assets

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Cash and Cash Equivalents 42,025.39 1,901.61 1,995.29
(ii) Trade Receivables 13.91 21.05 -
(iii) Loans
Term Loans 1,838,371.91 1,574,462.32 1,331,469.92
Less: Impairment Loss Allowance [refer Note 40(i)] 9,919.62 10,061.83 9,056.11
Sub Total 1,828,452.29 1,564,400.49 1,322,413.82
(iv) Investments 1,606.50 1,599.75 1,599.13
(v) Other Financial Assets 289.73 231.40 213.96
Total 1,872,387.83 1,568,154.30 1,326,222.20

Note 30 Financial Liabilities

(H in Lakh)
Sl. As at As at As at
Particulars
No. March 31, 2019 March 31, 2018 April 1, 2017
(i) Trade Payables 215.89 869.61 232.67
(ii) Debt Securities 345,015.05 489,827.41 369,756.84
(iii) Borrowings 1,298,319.16 879,444.67 794,330.15
(iv) Deposits 26,109.48 22,829.98 22,664.88
(v) Other Financial Liabilities 20,796.92 23,905.21 17,228.23
Total 1,690,456.49 1,416,876.88 1,204,212.76

Note 31 Provisions
(H in Lakh)
As at As at As at
Particulars
March 31, 2019 March 31, 2018 April 1, 2017
Provision for Expected Credit Loss (refer Note 5 & 31.1) 9,919.62 10,061.83 9,056.11
Provision for Employee Benefits (refer Note 31.2 below) 1,608.45 2,117.45 2,113.04
Provision for contingencies (refer Note 31.3 below) 900.97 900.97 600.00
Total Provision 12,429.04 13,080.25 11,769.15

The disclosure of provisons movement as required under IND AS 37- Provision, Contingent Liabilities and Contingent
Assets is as follows.

180
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

31.1 Provision for Expected Credit Loss

(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Balance at the beginning of the year 10,061.83 9,056.11
Provisions made during the year 109.22 2,590.07
Utilisations during the year - -
Released during the year 251.43 1,584.35
Provision at the end of the year 9,919.61 10,061.83

31.2 Provision for Employee Benefits

(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Balance at the beginning of the year 2,117.45 2,113.04
Provisions made during the year 10,990.91 11,307.58
Utilisations during the year (679.32) (340.38)
Released during the year - -
Provision at the end of the year 12,429.04 13,080.25

31.3 Provision for Contingencies

(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Balance at the beginning of the year 900.97 600.00
Provisions made during the year - 300.97
Utilisations during the year - -
Released during the year - -
Provision at the end of the year 900.97 900.97

181
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 32 Income Tax

32.1 Income Tax Expense in statement of profit and loss
(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Current income tax:
In respect of the current year 17,203.91 16,075.46
In respect of earlier years 151.54 (334.38)
Deferred tax:
In respect of the current year (78.67) (1,251.91)
Income tax expense recognised in the statement of profit or loss 17,276.79 14,489.17
Income tax recognised in other comprehensive income
(i) Current tax arising on income and expense recognised in other - -
comprehensive income
Net loss / (gain) on remeasurement of defined benefit plan - -
(ii) Deferred tax arising on income and expense recognised in other 1.47 22.33
comprehensive income
Total 1.47 22.33

32.2 Reconciliation between provision of Income Tax of the company and amounts computed by applying the Indian
Statutory Income tax rate to profit before taxes :
(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Profit Before Tax 46,950.48 43,108.40
Enacted Income Tax Rate in India (%) 34.94 34.61
Computed Tax Expense 16,406.38 14,918.87
Effect of :
Income tax pertaining to earlier years 151.54 (334.38)
Ind AS adjustments (Net) 1,085.78 (888.77)
Allowances/exemptions under income tax (528.98) (179.06)
Non-deductible expenses for tax purposes 322.32 309.45
Others (160.26) 663.06
Income tax expense recognised in the statement of profit and loss 17,276.79 14,489.17

The tax rates under Indian Income Tax Act, for the year ended March 31, 2019 and March 31, 2018 is 34.94% and 34.61%
respectively.

182
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 33
Deferred Tax assets/(liabilities) as at March 31, 2019 in relation to :
(H in Lakh)
As at Recognised in Recognised in As at
Particulars
April 1, 2018 profit and loss OCI March 31, 2019
Property,plant and Equipment 88.62 (147.32) - (58.70)
Expected Credit Loss 496.93 (89.68) - 407.26
Provision for employee benefits 952.54 (652.53) (1.47) 298.54
Financial assets carried at amortised cost 785.46 968.20 - 1,753.66
Total 2,323.56 78.67 (1.47) 2,400.75

Deferred Tax assets/(liabilities) as at March 31, 2018 in relation to :

(H in Lakh)
As at Recognised in Recognised in As at
Particulars
April 1, 2017 profit and loss OCI March 31, 2018
Deferred Tax Assets
Property,plant and Equipment 57.72 30.90 - 88.62
Provision for Doubtful Debts 385.91 111.02 - 496.93
Provision for compensated absence 731.32 221.22 - 952.54
Deferred tax relating to Ind AS Adjustment (80.98) 888.77 (22.33) 785.46
Total 1,093.98 1,251.91 (22.33) 2,323.56

Note 34 Deferred Tax Liability on Special Reserves

The Company was creating a Special Reserve in accordance with Section 36(1)(viii) of the Income tax Act, 1961 which was eligible
as a tax deduction for income tax purposes. Accordingly, as per the erstwhile accounting GAAP(AS 22 on “”Taxes on Income””)
and as per instructions from National Housing Board a deferred tax liability was being created on such special reserve. As per the
Ind AS accounting framework there is no requirement to create such a deferred tax liability, as the tax base and carrying amount
of the Special reserve are the same.

Accordingly, the value of deferred tax liability on special reserve as at the transition date amounting to H12,539.59 lakhs would be
reversed directly into the retained earnings and the amount recognised in the previous year amounting to H3,122.66 lakhs has been
reversed through the profit and loss statement.

The company has not created deferred tax assets on the following :
(H in Lakh)
As at As at As at
Particulars
March 31, 2019 March 31, 2018 April 1, 2017
NIL

183
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 35: Contingent Liabilities and commitments (to the extent not provided for)
(i) Contingent Liabilities (to the extent not provided for)
(H in Lakh)
Nature of claims Risk involved As of As of
March 31, 2019 March 31, 2018
1. The Income Tax Appeals filed by the Department for the Asst. Years
1996-97 to 1999-2000 have been dismissed by the Hon’ble High Court
of Karnataka and allowed in favour of the Company. The Department
has filed two separate appeals before the Hon’ble Supreme Court
of India for the Asst. Year 1996-97 which has since been dismissed.
Hence no longer considered as disputed tax/contingent liability. Further,
provision created for the said purpose for an amount of H300.96 lakhs
as on March 31, 2018 has been utilised for AY 2006-07 and AY 2007-
08 disputed tax.
2. The appeals filed by the Company for the Asst. Year 2006-07 and 2007- 149.46 149.46
08 were dismissed by the 2nd appellate authority and the Company has
preferred appeals before the Hon’ble High Court of Karnataka which are
admitted and yet to be heard. The alleged demand for the Asst. Year
2006-07 (under appeal) has been recovered by the Department to the
extent of H535 lakhs out of the refunds determined to the Company. The
alleged demand for the Asst. Year 2007-08 (under appeal) amounting
to H448.13 lakhs towards the alleged Income Tax and interest, is also
Disputed Income adjusted by the department. Further, H375.80 lakhs has been paid by the
Tax matters under company under protest. Provision created in the books of account for the
appeal: said purpose and balance as on March 31, 2018 is H600.00 lakhs and the
excess provision as per point 1 above to the extent of H300.96 lakhs has
been utilised for provision against disputed tax of AY 2006-07 & 2007-
08. The short provision to the extent of , H113.85 continued to be shown
as such under disputed Tax.
3. An amount of H3.55 lakhs demanded for the Asst. Year 2003-04.
However as per Company there is no tax due for the said Asst.Year.
Company is yet to receive rectification order. Hence shown under
disputed tax.
4. An amount of H15.61 lakhs demanded for the Asst. Year 2004-05.
However as per Company there is no tax due for the said Asst.Year.
Company is yet to receive rectification order. Hence shown under
disputed tax.
5. An amount of H16.44 lakhs demanded for the Asst. Year 2011-12
continues to be shown under disputed tax, pending receipt of
rectification orders against which the Company has determined a
liability of H1.97 lakhs to be adjusted against the refund due to the
Company.
Claims made by There are ten cases in Consumer Forums, out of which one case is 98.97 45.94
borrowers of the pending before State Consumer redressal Forum and one case is
company before pending before High Court where compensation is sought against
various Consumer the Company.
Forums.
Based on the professional advice no material liability are expected, and hence no provision is made in the financial
statement for the same.

184
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 35: Contingent Liabilities and commitments (to the extent not provided for) (Contd..)
(ii) Commitments (not provided for)
(H in Lakh)
Nature of claim As of As of
March 31, 2019 March 31, 2018
Value of contracts remaining to be executed on capital account 2.57 -

Note 36 Employee Benefit Expenses

Defined Benefit Plans:

1. Gratuity is an Employee Benefit payable on retirement / superannuation / resignation on completion of 5 years of service.

2. Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can
be accumulated upto a maximum of 240 days.

3. Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed
proportion.

4. Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated upto a maximum
of 270 days.

5. Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

I. Reconciliation of present value of Projected Benefit Obligation:

(H in Lakh)
Gratuity Exempt PF
For the year ended For the year ended
Particulars
March 31, March 31, March 31, March 31, March 31, March 31,
2019 2018 2017 2019 2018 2017
Present value of Projected Benefit obligation 1,460.91 945.31 857.28 3,398.57 2,839.92 2,496.86
Current Service Cost 106.22 61.73 52.05 627.24 549.12 496.75
Past Service Cost - 485.48 - - - -
Net interest on net defined liability/ (asset) 106.13 67.75 66.33 312.81 258.58 226.51
Benefits paid and charges deducted (172.24) (34.34) (35.28) (436.98) (184.65) 162.26
Re-measurement - actuarial (gain)/ loss (35.15) (65.02) 4.93 302.49 (64.39) (217.94)
recognised in OCI
Net Present value of Projected Benefit 1,465.87 1,460.91 945.31 4,204.13 3,398.58 3,164.44
obligation

185
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

(H in Lakh)
Long Term Compensated Absence Sick Leave
For the year ended For the year ended
Particulars
March 31, March 31, March 31, March 31, March 31, March 31,
2019 2018 2017 2019 2018 2017
Present value of Projected Benefit obligation 873.82 918.17 695.47 83.11 88.52 71.05
Current Service Cost 53.63 49.28 39.53 11.65 10.71 8.73
Past Service Cost - - - - - -
Net interest on net defined liability/ (asset) 64.75 62.60 51.76 6.42 6.46 5.61
Benefits paid and charges deducted (70.10) (121.39) (80.43) - - -
Re-measurement - actuarial (gain)/ loss 45.88 (34.84) 211.84 (8.22) (22.58) 3.13
recognised in OCI
Net Present value of Projected Benefit 967.99 873.82 918.17 92.96 83.11 88.52
obligation

II. Expenses recognised in the statement of Profit and Loss account under the head “Employee Benefits Expenses” for the
year ended March 31, 2019
(H in Lakh)
Gratuity Exempt PF
As at As at As at As at As at As at
Particulars
March 31, March 31, April 1, March 31, March 31, April 1,
2019 2018 2017 2019 2018 2017
Current Service Cost 106.22 61.73 52.05 627.24 549.12 496.75
Past Service Cost - 485.48 - - - -
Interest Cost 51.54 58.56 66.33 312.81 258.58 226.51
Benefits Settled - - - - - -
Obligations at end of the year 157.77 605.77 118.38 940.05 3,398.57 723.26

(H in Lakh)
Sick Leave Long Term Compensated Absence
As at As at As at As at As at As at
Particulars
March 31, March 31, April 1, March 31, March 31, April 1,
2019 2018 2017 2019 2018 2017
Current Service Cost 11.65 10.71 8.73 53.63 49.28 39.53
Past Service Cost - - - - - -
Interest Cost 6.42 6.46 5.61 64.75 62.60 51.76
Benefits Settled - - - - - -
Obligations at end of the year 18.07 17.17 14.34 118.38 111.87 91.30

186
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

III. Reconciliation of Opening balances and Closing balances of Plan Assets

(H in Lakh)
Gratuity Exempt PF
As at As at As at As at As at As at
Particulars
March 31, March 31, April 1, March 31, March 31, April 1,
2019 2018 2017 2019 2018 2017
Plan assets at the beginning of the year, at fair 117.50 143.13 154.58 3,581.46 2,973.78 2,428.92
value
Re-measurement - actuarial gain/ (loss) (30.94) (0.49) 2.24 3.93 (40.30) (23.30)
Expected return on plan assets 54.59 9.20 11.23 332.58 283.51 233.67
Contributions from Employees 1,351.56 - 10.36 627.24 549.12 496.75
Benefits Settled (172.24) (34.34) (35.28) (436.98) (184.65) (162.26)
Plan assets at the end of the year 1,320.47 117.50 143.13 4,108.23 3,581.46 2,973.78
at fair value

(H in Lakh)
Sick Leave Long Term Compensated Absence
As at As at As at As at As at As at
Particulars
March 31, March 31, April 1, March 31, March 31, April 1,
2019 2018 2017 2019 2018 2017
Plan assets at the beginning of the year, at fair - - - - - -
value
Interest income on plan assets
Re-measurement - actuarial gain/ (loss) - - - - - -
Return on plan assets greater/ (lesser) than - - - - - -
discount rate
Contributions from Employees - - - 70.10 121.39 80.43
Benefits Settled - - - (70.10) (121.39) (80.43)
Plan assets at the end of the year - - - - - -
at fair value

Acturial Assumptions
(H in Lakh)
As on As on As on
Description
March 31, 2019 March 31, 2018 March 31, 2017
Discount rate per annum 7.62% 7.72% 7.30%
Expected rate of return on Plan Assets Gratuity-7.62% Gratuity-7.72% Gratuity-8.00%
Exempted PF- Exempted PF- Exempted PF-
8.65% 8.65% 8.65%
The estimates of future salary increases considered in 7.00% 8.00% 8.50%
actuarial valuation, take into account escalation, inflation,
seniority, Promotion and other relevant factors

187
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Investment pattern (in %)

As at As at As at
Particulars
March 31, 2019 March 31, 2018 March 31, 2017
Gratuity - Funded
Funds managed by Insurer 100% 100% 100%
Total 100% 100% 100%
Exempt PF- Funded
Government of India Securities 7.76% 12.21% 17.86%
State Government Securities 40.64% 36.07% 31.46%
High Quality Corporate Bonds 38.96% 40.25% 40.13%
Special Deposits Scheme 2.39% 2.72% 3.29%
Mutual Funds 6.91% 5.65% 4.73%
Bank Deposits 3.35% 3.09% 2.53%
Total 100% 100% 100%

Historical information
Gratuity
(H in Lakh)
As at As at As at As at
Particulars
March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Present value of defined benefit obligation (1,465.87) (1,460.91) (945.31) (857.28)
Fair value of plan assets 1,320.47 117.50 143.13 154.58
Asset/ (liability) recognized (145.40) (1,343.41) (802.17) (702.70)

Exempt PF
(H in Lakh)
As at As at As at As at
Particulars
March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Present value of defined benefit obligation (4,204.13) (3,398.58) (2,839.92) (2,496.86)
Fair value of plan assets 4,108.23 3,581.46 2,973.78 2,428.93
Asset/ (liability) recognized (95.90) 182.88 133.86 (67.93)

Sick Leave
(H in Lakh)
As at As at As at As at
Particulars
March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Present value of defined benefit obligation (92.96) 83.11 88.52 71.05
Fair value of plan assets - - - -
Asset/ (liability) recognized (92.96) 83.11 88.52 71.05

188
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Long Term Compensated Absence

(H in Lakh)
As at As at As at As at
Particulars
March 31, 2019 March 31, 2018 March 31, 2017 March 31, 2016
Present value of defined benefit obligation (967.99) (873.82) (918.17) (695.47)
Fair value of plan assets - - - -
Asset/ (liability) recognized (967.99) (873.82) (918.17) (695.47)

Maturity profile of defined benefit obligation

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Average duration of the define benefit obligation (in years):
- Gratuity 8.8 9.3
- Long Term Compensated Absence 9.9 10.3

Sensitivity Analysis

The sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of reporting year, which is same as that applied in
calculating the defined benefit obligation liability recognized in the balance sheet

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:

Gratuity
(H in Lakh)
As at March 31, 2019 As at March 31, 2018
Particulars
Increase Decrease Increase Decrease
Basis points 50 bps 50 bps 50 bps 50 bps
- Discount rate
Impact on Defined benefit obligation 56.49 (60.55) 59.31 (63.62)
Impact on Current Service cost 7.53 (6.71) (37.03) (52.85)
- Salary Growth
Impact on Defined benefit obligation (39.91) 39.12 (36.95) 37.13
Impact on Current Service cost (3.61) 6.02 (49.64) (39.33)

189
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Long Term Compensated Absence

(H in Lakh)
As at March 31, 2019 As at March 31, 2018
Particulars
Increase Decrease Increase Decrease
Basis points 50 bps 50 bps 50 bps 50 bps
-Discount rate
Impact on Defined benefit obligation 41.63 (45.09) (139.31) (52.12)
Impact on Current Service cost 4.77 (0.96) (5.31) 0.44
-Salary Growth
Impact on Defined benefit obligation 133.19 51.89 (41.96) 39.10
Impact on Current Service cost 3.12 (3.45) (7.77) (1.22)

Sick Leave
(H in Lakh)
As at March 31, 2019 As at March 31, 2018
Particulars
Increase Decrease Increase Decrease
Basis points 50 bps 50 bps 50 bps 50 bps
- Discount rate
Impact on Defined benefit obligation 2.43 (2.58) 2.26 (2.40)
Impact on Current Service cost (0.17) (1.09) (0.49) (1.44)
- Salary Growth
Impact on Defined benefit obligation (2.58) 2.45 (2.38) 2.26
Impact on Current Service cost (1.09) (0.17) (1.43) (0.49)

Maturity profile of defined benefit obligation:

(H in Lakh)
Gratuity Long Term Compensated Absence
As at As at As at As at As at As at
Particulars
March 31, March 31, April 1, March 31, March 31, April 1,
2019 2018 2017 2019 2018 2017
Year 1 70.92 93.13 54.97 33.84 37.62 27.53
Year 2 136.33 65.55 62.02 57.60 27.16 30.37
Year 3 111.90 114.60 59.62 46.44 44.37 34.52
Year 4 152.87 137.55 76.51 62.61 50.19 44.76
Year 5 186.65 144.58 93.20 75.81 52.34 53.65
Next 5 years 945.14 1031.52 571.65 407.46 413.05 396.46

Note: Maturity profile of defined benefit obligation is not applicable to Sick Leave and Exempted PF.

190
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 37 Reconciliation of number of equity shares used in the computation of basic and diluted
earnings per share
(H in Lakh)
For the year ended
Particulars March 31, 2019 March 31, 2018
Basic EPS Diluted EPS Basic EPS Diluted EPS
Weighted average number of equity shares outstanding 1,331.54 1,331.54 1,331.01 1,331.01
during the year
Equity shares issued during the year   - - 0.53 0.53
Weighted average number of equity shares for 1,331.54 1,331.54 1,331.54 1,331.54
calculation of earnings per share
Profit for the year, as per Profit & Loss Statement 29,673.69 29,673.69 28,619.23 28,619.23
(excluding Other Comprehensive income)
Earning per share [Basic EPS/Dilutive EPS] 22.29 22.29 21.49 21.49

Note 38 Components of Other Comprehensive Income

The disaggregation of changes to OCI by each type of reserve in equity is shown below:
(H in Lakh)
Year ended Year ended
Particulars
March 31, 2019 March 31, 2018
(a) Items that will not be reclassified to profit and loss
(i) Actuarial (Gain)/ loss (4.21) (64.53)
(b) Income Tax relating to items that will not be reclassified to profit and loss 1.47 22.33
Total (2.74) (42.20)

Note 39 Financial Instruments

(H in Lakh)
Carrying value as at
Particulars As at As at As at
March 31, 2019 March 31, 2018 April 1, 2017
Financial asset
at Amortised cost
Loans 18,28,452.29 15,64,400.49 13,22,413.82
Trade Receivables 13.91 21.05 -
Cash and Cash Equivalents 42,025.39 1,901.61 1,995.29
Investments 1,606.50 1,599.75 1,599.13
Other Financial Assets 289.73 231.40 213.96
Total Financial Assets 18,72,387.83 15,68,154.30 13,26,222.20

191
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 39 Financial Instruments (Contd..)

(H in Lakh)
Carrying value as at
Particulars As at As at As at
March 31, 2019 March 31, 2018 April 1, 2017
Financial Liabilities
at Amortised cost
Debt Securities 3,45,015.05 4,89,827.41 3,69,756.84
Borrowings 12,98,319.16 8,79,444.67 7,94,330.15
Deposits 26,109.48 22,829.98 22,664.88
Other Financial Liabilities 20,796.92 23,905.21 17,228.23
Trade Payables 215.89 869.61 232.67
Total Financial Liabilities 16,90,456.49 14,16,876.88 12,04,212.76

Note 40 Financial Risk Management

i) Credit Risk

It is defined as the inability or unwillingness of the counterparty to meet the commitment in relation to lending, trading,
hedging, settlement and other financial transactions. Also it is defined as the possibility of losses associated with diminution
in the credit quality of borrowers or counter parties. The Credit policy articulates credit risk strategy to effectively communicate
it throughout the company and all relevant personnel to understand company’s approach to grant of credit. The Policy covers
products/borrower category, frame work for appraisal process, guidelines for takeover of accounts, entry level matrix (credit
scoring system) and flexibility in pricing, dispensation of credit, monitoring and review mechanism, limit structure/prudential
exposure levels, reporting frame work. The Company has put in place a proper Loan Review Mechanism with responsibilities
assigned in various areas such as, evaluating the effectiveness of loan administration, maintaining the integrity of credit
grading process, assessing the loan loss provision, portfolio quality, etc. Credit grading involves assessment of credit quality,
identification of problem loans, and assignment of risk ratings. Monitoring is being done through guidelines to branches; follow
up by overseeing executives and other regular follow up.

Analysis of stages of loans and provision of expected credit loss is as follows [Refer Note 2 (h) for “Significant
Accounting Policies”].
(H in Lakh)
Particulars March 31, 2019 March 31, 2018
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross carrying amount of loans 17,37,877.13 88,968.05 11,351.24 18,38,196.42 14,98,093.61 69,457.07 6,748.51 15,74,299.19
(A)
Provision as per ECL Model (B) 1,047.84 430.58 3,123.02 4,601.44 903.27 336.15 3,781.27 5,020.69
Provision for Standard and NPA 6,124.92 390.08 3,404.62 9,919.62 6,154.20 320.80 3,586.83 10,061.83
Assets* (C) [Refer Note 5.3]
% of Provision held =(D)= (E)/(A) 0.35% 0.44% 29.99% 0.54% 0.41% 0.46% 53.15% 0.64%
Net Carrying Amount of Loans 17,36,829.29 88,537.47 8,228.22 18,33,594.98 14,97,190.34 69,120.92 2,967.24 15,69,278.50
(E) = (A)-(C)
*As per IRAC norms of NHB.

192
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

1. The provision estimated as per ECL model on an aggregate basis is lower than the overall provision required under IRAC
norms of the NHB. The Management on a conservative approach has decided to maintain the higher provision.

2. The company has availed the exception offered in Paragraph B8G of Ind AS 101- First time Adoption of Ind AS. Based on
their assessment, the company has concluded that the financial instruments held had low credit risk and hence additional
provisions over and above those already held was not considered necessary.

3. As at balance sheet date, the Company does not have significant concentration of credit risk (Refer Note 44.9(ii)).

ii) Financial Risk

The market risk is the possibility of loss to the Company prices of security due to changes in the market factors, mainly the
changes in interest rates, and competition. It is the risk to the Company’s earnings and capital due to the changes in the market
interest rates. Market Risk also includes company’s ability to meet its obligations as and when due. The limited avenues at
the disposal of the Company for raising low cost/cost effective resources and our operating on thin spreads make market risk
management all the more significant. The Company has an Investment Policy/ Borrowing Policy in place which addresses
the Market Risk which defines safety and liquidity will have preference over returns. Our majority of investment is by way of
Bank Deposits and Govt. securities for the purpose of maintenance of SLR as prescribed by NHB. All these deposits are held
to maturity. There is an ALM Committee of Executives at RO (ALCO), which functions as the operational unit for managing
the balance sheet and asset liability mismatches. All the borrowing decisions and raising short term funds in the form of Non
Convertible Debentures, Commercial Papers, Securitization and such other modes, are taken at appropriate level as per the
Board approved policy on borrowings. Refer Note 5.6 for Asset Liability Management.

The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2019,
March 31, 2018 and April 01, 2017.
(H in Lakh)
As at March 31, 2019
Particulars Total
< 1 year 1-3 years > 3 Years
Borrowings from Banks 2,39,154 1,65,410 4,81,022 8,85,585.75
Borrowings from NHB 29,584 50,533 1,17,006 1,97,122.70
Deposits 15,321 9,970 818 26,109.48
Debentures and Commercial Papers 3,38,000 1,22,200 1,10,000 5,70,200.00

(H in Lakh)
As at March 31, 2018
Particulars Total
< 1 year 1-3 years > 3 Years
Borrowings from Banks 1,30,952 76,457 2,56,164 4,63,573.61
Borrowings from NHB 25,944 64,382 117,984 2,08,309.54
Deposits 10,773 11,307 750 22,830.41
Debentures and Commercial Papers 3,52,562 2,23,000 1,22,200 6,97,762.00

193
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

(H in Lakh)
As at April 1, 2017
Particulars Total
< 1 year 1-3 years > 3 Years
Borrowings from Banks 4,910 70,042 73,649.00 148,601
Borrowings from NHB 38,822 100,392 198,289.00 337,503
Deposits 13,324 6,755 2,585.00 22,664
Debentures and Commercial Papers 257,000 258,000 92,200.00 607,200

iii) Liquidity Risk

Probability of loss arising from a situation where (1) there will not be enough cash and/or cash equivalents to meet the needs
of depositors and borrowers, (2) sale of illiquid assets will yield less than their fair value, or (3) illiquid assets will not be sold at
the desired time due to lack of buyers. ALM Policy is in place which has set prudential limits for structural liquidity and interest
rate risk. The ALCO committee of the Company analyzes the ALM position of the Company as at the end of each quarter and
appraises the Board the ALM position of the respective quarters along with the proposed measure to improve the ALM position.

iv) Interest rate risk

Earnings risk is the danger that income may fluctuate due to changes in economic conditions or other factors. It is also the
potential negative impact on the net interest income. The risk refers to vulnerability to movement in interest rates. Changes in
interest rates effects earning, value of asset and cash flow. Asset Liability Management Committee (ALCO) meets at periodical
intervals and assesses the earning risk and gives proper directions to the management to improve the NIM. Company shall
monitor the income earned by way of interest and other income at quarterly intervals and place suitable notes to Board while
placing notes on quarterly/half yearly/annual financial results of the Company. The limited avenues at the disposal of the
Company for raising low cost/cost effective resources and our operating on thin spreads make market risk management all
the more significant. The credit rating of our borrowings also have a significant impact on our net interest margin. Refer Note
44.4 for credit rating details.
(H in Lakh)
Sensitivity Analysis on Net Interest: As at March 31, 2019 As at March 31, 2018
Increase by Decrease by Increase by Decrease by
Particulars
25bps 25bps 25bps 25bps
Impact on profit before tax- Gain/ (Loss) 4,241.07 (4,241.07) 3,608.52 (3,608.52)

Note 41 The Capital Structure is as follows:-

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity
shares. The Company’s objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.

194
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt
portfolio of the Company.
(H in Lakh)
As at As at As at
Particulars
March 31, 2019 March 31, 2018 April 1, 2017
Total Capital 18,47,662.28 15,40,800.81 13,07,121.96
Total Equity attributable to the Equity Shareholders of the 1,78,218.60 1,48,698.75 1,20,370.10
Company
As percentage of Total Capital 10% 9.65% 9.21%
Total Borrowings (including deposits and debt securities) 16,69,443.68 13,92,102.06 11,86,751.86
As a percentage of Total Capital 90% 90% 91%
Total Capital (Equity and Borrowings) 18,47,662.28 15,40,800.81 13,07,121.96

Note 42
A. Related Party

Name of Related Party Nature of Relationship

Canara Bank Sponsor Bank
1. Canbank Factors Ltd.
2. Canbank Computer Services Ltd
3. Canbank Financial Services Ltd. Subsidiaries of Canara Bank
4. Canbank Venture Capital Fund
5. Canara Bank Securities Ltd
1. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.
Joint Venture with Canara Bank
2. Canara Robeco Asset Management Company Ltd.
Key Managerial Personnel:
1. Shri S K Hota Managing Director
2. Shri Shrikant M Bhandiwad Whole Time Director (w.e.f April 28, 2018)
3. Shri Atanu Bagchi Chief Financial Officer
4. Smt Veena G Kamath Company Secretary
5. Smt Shamila Mangalore Manager (w.e.f April 28, 2018)

B. Transactions with the above Related Party during the year

(H in Lakh)
Name of Related Party Nature of Transaction For the period
2018-19 2017-18
Veena G Kamath Remuneration 13.71 15.84
Atanu Bagchi Remuneration 14.19 16.11
Shamila Mangalore Remuneration 15.57 -

195
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

B. Transactions with the above Related Party during the year (Contd..)
(H in Lakh)
Name of Related Party Nature of Transaction For the period
2018-19 2017-18
Term Loans & other credit facilities outstanding at the year 3,32,751.97 2,56,804.71
end
Interest paid for the year 19,976.11 10,831.32
Deposits matured during the year 1,680.10 1,654.00
Deposits made with Bank (including renewals) 41,708.06 1,680.11
Interest earned for the year 125.35 114.58
Rent paid for the year 61.95 41.94
Canara Bank
Bank charges for the year 21.98 22.71
Sitting Fees to Directors 5.40 3.80
Salary & other benefits of Managing Director and Whole 45.19 29.41
Time Director
Other Payments for the year 5.38 4.80
Rent Received from Bank - 0.24
Current A/c Balances 168.90 150.06
Canbank Computer Services Registrar & Transfer Agency charges for the year 13.88 16.32
Ltd
Canara Bank Employee Borrowings by way of SRNCD 6,000.00 7,000.00
Pension Fund,Provident
Fund & Gratuity Fund
Interest paid on SRNCD 535.70 467.92
Canara Robeco Asset Dividend earned during the year - 19.05
Management Company Ltd.
Canara HSBC OBC Commission earned for the year 79.68 19.49
Insurance Co. Ltd
Total 4,03,223.12 2,78,892.41

C. Balances Payable to Related Parties are as follows

(H in Lakh)
Nature of As at As at As at
Particulars
Balances March 31, 2019 March 31, 2018 April 1, 2017
Canara Bank Term Loan 332,751.97 256,804.71 169,182.16
Canara Bank Employee Pension Fund,Provident Debentures 535.70 467.92 5,500.00
Fund & Gratuity Fund

196
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

D. Balances Receivable from Related Parties are as follows

(H in Lakh)
Nature of As at As at As at
Particulars
Balances March 31, 2019 March 31, 2018 April 1, 2017
Canara Bank Fixed Deposits 1,680.10 1,654.00 1,654.00
Atanu Bagchi Employee Loan 2.67 1.69 2.34
Shamila Mangalore Employee 2.02 1.80 1.92
Loans &
Advances

E. Compensation to Key Managerial Personnel

(H in Lakh)
For the year ended
Particulars
March 31, 2019 March 31, 2018
Short term employee benefit 88.66 61.36
Post-employment benefits* - -
Total Compensation paid to Key Managerial Personnel 88.66 61.36
*The post employment benefits namely provision for gratuity and compensated absences cannot be determined employee wise since the provision is
based on the actuarial valuation of the company as a whole.

Note 43

Ind AS 101- First time Adoption of Ind AS :

The financial statements of the Company for the year ended March 31, 2019 have been prepared in accordance with Ind ASs
notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance
with Ind AS 101, using April 1, 2017 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that
are effective for the Ind AS Consolidated Financial Statements for the year ended March 31, 2019, be applied consistently and
retrospectively for all fiscal years presented.

All applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the
carrying amounts of the assets and liabilities in the consolidated financial statements under both Ind AS and Indian GAAP as of
the Transition Date have been recognized directly in equity at the Transition Date.

In preparing these consolidated financial statements, the entity has availed itself of certain exemptions and exceptions in
accordance with Ind AS 101 as explained below:

(a) Exceptions from full retrospective application:

1) Classification and measurement of financial assets:

The Company has availed the exception provided in Paragraph B8C of Ind AS 101 since the company has found it
impracticable to apply the effective interest rate prior to the date of transition to Ind As considering the fact that the loans/
debentures have been given/received for long tenors. The exception has been availed for housing loans given and non-
convertible debentures issued.

197
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

2) Impairment of financial assets:

The company has availed the exception offered in Paragraph B8G of Ind AS 101- First time Adoption of Ind AS. Based
on their assessment, the company has concluded that the financial instruments held had low credit risk and hence the
provision for loans those already held in the books of account as on April 01, 2017 was considered more than the expected
credit loss and hence the additional provision was not considered necessary.

(b) Certain exemptions from the application from other Ind AS:

1) Deemed cost of Property, Plant and Equipment:

The Company has availed the exception provided in Paragraph D7AA of Ind AS 101 and taken the carrying value of
Property, Plant and Equipment as on 31st March 2017 as Deemed Cost on 1st April 2017.

2) Fair value measurement of Employee loans at initial recognition prospectively:

The Company has availed the exemption provided in Paragraph D 20 of Ind AS 101 and have fair valued Employee Loans
prospectively from the date of transition

(c) Reconciliations:

As required by Paragraph 24 of Ind AS 101, the following reconciliations provide a quantification of the effect of significant
differences arising from the transition from Indian GAAP to Ind AS in accordance with Ind AS 101:

1. Reconciliation of Equity as at
a) 1st April 2017
b) 31st March 2018

2. Reconciliation of total comprehensive Income for the period ended

a) 31st March 2018

3. There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared
under Ind AS

Reconciliation of Profit from previous GAAP to Ind AS for the period 2017-18
(H in Lakh)
Particulars Explanatory Note Amount
Net Profit as per previous GAAP 30,177.43
Adjustments due to adoption of Ind AS
Amortisation of processing fees on loan 1 (2,527.73)
Deemed Interest Income on Security Deposits 2 17.33
Amortisation of Prepaid Rent 2 (19.01)
Straight lining of Lease Rentals as per Ind AS 17 3 (34.17)
Actuarial gains and losses to be recognised under OCI 4 (64.53)
Amortisation of transaction costs on non-covertible debentures 5 (70.58)
Adjustment on account of Investment carried at amortised cost 6 0.63
Employee Loans to be carried at fair value 7 0.90

198
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Reconciliation of Profit from previous GAAP to Ind AS for the period 2017-18 (Contd..)
(H in Lakh)
Particulars Explanatory Note Amount
Reversal of Deferred Tax Liability on Special Reserve 8 3,122.66
Deferred Tax expense/(gain) due to above adjustments 9 888.77
Current Tax adjustment on Special Reserve 8 (2,872.46)
Net Profit as per Ind AS 28,619.23
Other Comprehensive Income
Reclassification of actuarial gains and losses to OCI 4 64.53
Deferred Tax Asset on OCI 9 (22.33)
Total Comprehensive Income as per Ind AS 28,661.43

Equity Reconcililiation from previous GAAP to Ind AS as at March 31, 2018

(H in Lakh)
Particulars Explanatory Note Amount
Equity as per previous GAAP 134,649.69
Adjustments due to adoption of Ind AS
Amortisation of processing fees on loan 1 (2,527.73)
Deemed Interest Income on Security Deposits 2 17.33
Amortisation of Prepaid Rent 2 (19.01)
Straight lining of Lease Rentals as per Ind AS 17 3 (34.17)
Amortisation of transaction costs on non-covertible debentures 5 (70.58)
Adjustment on account of Investment carried at amortised cost 6 0.63
Employee Loans to be carried at fair value 7 0.90
Reversal of Deferred Tax Liability on Special Reserve 8 15,815.25
Deferred Tax expense/(gain) due to above adjustments 9 866.44
Equity as per Ind AS 148,698.75

Equity Reconcililiation from previous GAAP to Ind AS as at April 1, 2017

(H in Lakh)
Particulars Explanatory Note Amount
Equity as per previous GAAP 107,677.51
Adjustments due to adoption of Ind AS
Deemed Interest Income on Security Deposits 2 (102.35)
Amortisation of Prepaid Rent 2 90.85
Straight lining of Lease Rentals as per Ind AS 17 3 (203.31)
Amortisation of transaction costs on non-covertible debentures 5 443.16
Adjustment on account of Investment carried at amortised cost 6 5.63
Reversal of Deferred Tax Liability on Special Reserve 8 12,539.59
Deferred Tax expense/(gain) due to above adjustments 9 (80.98)
Equity as per Ind AS 120,370.10

199
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

1. Amortisation of Processing Fees:

The processing fees has been amortized over the tenure of the loan as per Ind AS 109. In case of fees collected on DSA
sourced proposals, fees will be amortised over the tenor of the loan after reducing the DSA commission portion calculated by
using weighted average on portfolio basis. Upon disbursement amount will be accounted under fees income in proportion to
disbursement [Refer Note 2(k)(ii)].

2. Fair Valuation of Security Deposits:

As per previous GAAP, the security deposits were shown at their transaction value. As per Ind AS 109, refundable and non-statutory
security deposits have been discounted to their present value on the date of contract. The difference between the carrying value and
fair value is treated as ‘Prepaid Rent’ and the same has been amortised over the remaining tenure of such deposit.

3. Straight lining of Lease Rentals as per Ind AS 17:

As per previous GAAP, Lease Rentals were accounted as expense in Profit and Loss Statement for based on the terms and conditions
of the lease agreement. As per Ind AS 17- Leases, lease rentals have been straight-lined over the non-cancellable lease period.

4. Employee benefits

Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the
actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other
comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income
under Ind AS instead of the statement of profit and loss. As per Ind AS 1 and Ind AS 19, actuarial gains and losses have to be
presented in Other Comprehensive Income

5. Transaction cost on issue of debentures:

As per previous GAAP, the transaction cost incurred for issue of debentures were recognised as expense as and when incurred.
Under Ind AS 109, the transaction cost incurred on issue of debentures are forming part of the computation of Effective
interest rate (EIR). [Refer Note 2 (d)(b)].

6. Adjustment on account of Investment carried at amortised cost:

As per previous GAAP, investments are carried at cost . As per Ind AS 109, SLR Investments acquired at a discount have been
amortised over the period of the investment effective rate of interest.

7. Adjustment on account of employee loans carried at amortised cost:

As per previous GAAP, loans to employees were being carried at their transaction value . As per Ind AS 109, these loans are
discounted to their present value on transition date. The difference between the carrying value and fair value is treated as
deferred employee loans and the same has been amortised over the remaining tenure of such loans.

8. Reversal of Deferred Tax Liability on Special Reserve [Refer Note 34]:

As per previous GAAP, DTL was created on the special reserve created under section 36(1)(viii) of the Income Tax Act, 1961 as
per the requirement of circular no NHB(ND)/DRS/Policy Circular 65/2014-15 dated August 22, 2014. Under Ind AS 12-Taxes on
Income, there is no difference beween carrying amount of special reserve as per books of account and its tax base. Accordingly
DTL is not required to be created on the special reserve. As per Ind AS-12, current tax on items which are recognised outside
Profit & Loss Statement shall also be recognised outside the Profit & Loss Statement. Since the special reserve is appropriated
from profit and accounted in Other Equity, the current tax on the same also has been accounted in Other Equity.

9. Deferred tax impact due to Ind AS Adjustments:

The deferred tax has been recognised on temporary differences arising on transition to Ind AS.
200
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 44

Disclosures required as per Housing Finance Companies – Corporate Governance (NHB) Directions, 2016 issued by National
Housing Bank (NHB)

44.1 Capital to Risk Assets Ratio (CRAR)

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
i) CRAR (%) [1] 16.44% 19.08%
ii) CRAR – Tier I Capital (%)[1] 14.64% 16.96%
iii) CRAR – Tier II Capital (%) [2] 1.80% 2.12%
iv) Amount of subordinated debt raised as Tier – II Capital (H in lakhs) 10,000 10,000
v) Amount raised by issue of Perpetual Debt Instruments (H in lakhs) - -

Note 1: Term deposit amounting to H25,700.42 Lakhs (matured on 10th April’2019) held with Canara Bank is reduced in the
computation of Net owned funds. The CRAR without considering the aforesaid term deposit would have been 19.24% (Tier I
Capital of 17.44%).

Note 2: Tier II capital includes Provision for Standard Assets.

Note 44.2
A. Exposure to Real Estate Sector
(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Direct Exposure
(i) Residential Mortgages
Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented
- Individual Loans of & up to H15 lakhs. 6,34,665.86 4,72,405.72
- Individual loans above H15 lakhs. 10,54,512.09 9,42,925.10
ii) Commercial Real Estate -
Lending secured by mortgages on commercial real estate (Office buildings, retail 1,48,542.85 1,59,051.79
space, multipurpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.,) Exposure would also include non-
fund based (NFB) limits:
iii) Investments in Mortgage Backed Securities (MBS) and other Securitised exposures
-
a) Residential Nil Nil
b) Commercial Real Estate Nil Nil
Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) and Nil Nil
Housing Finance companies (HFCs)

201
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

B. Exposure to Capital Market : NIL

C. Details of financing of parent company products : NIL
D. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the HFC : NIL
E. Unsecured Advances : NIL

Note 44.3 Registration obtained from other financial sector regulators during the year:

(i) Renewal of registration of the Company as LEI (Legal Entity Identifier) as required by RBI.

(ii) Registration of Company on TReDS (Trade Receivables Discounting System) platform trough RXIL (Receivables Exchange of
India Limited) as required by MCA (Ministry of Corporate Affairs).

(iii) Registration of the Company as Business user for filing of returns in FIRMS (Foreign Investment Reporting and Management
System).

(iv) Registration of Company as convergence partner with NCH (National Consumer Helpline) through software “INGRAM” as
directed by NHB

Note 44.4 Rating assigned by Credit Rating Agencies and migration of rating during the year:

Credit Rating Type Credit Rating

agency FY 2018-19 FY 2017-18
ICRA Public Deposits ICRA MAAA (Negative) ICRA MAAA (Negative)
ICRA Commercial Papers A1+ A1+
ICRA Long Term Bank Loans ICRA AAA ICRA AAA
ICRA Short Term Bank Loans A1+ A1+
ICRA Non Convertible Debentures ICRA AAA (Outlook Negative) ICRA AAA (Outlook Negative)
Non Convertible Debentures CARE AAA (Outlook Stable) CARE AAA (Under credit watch
CARE
with developing implications)
Commercial Papers A1+ A1+ (Under credit watch with
CARE
developing implications)
FITCH Non Convertible Debentures IND AAA (Outlook Negative) IND AAA (Outlook Negative)
FITCH Commercial Papers IND A1+ IND A1+

Note 44.5

Revenue Recognition: No revenue recognition has been postponed pending the resolution of significant uncertainties.

Note 44.6 Indian Accounting Standard 110 – Consolidated Financial Statements

The subject Standard is not applicable for the Company.

202
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 44.7 Provisions and Contingencies

(H in Lakh)
As at As at
Break up of Provisions and Contingencies
March 31, 2019 March 31, 2018
Provision for depreciation on Investment - -
Provision made towards Income Tax (net) 154 344
Provision towards NPA 3,404.62 3,586.83
Provisions for Standard Assets (for details like teaser loan, CRE. CRE-RH etc Refer 6,515.00 6,475.00
Note 14.5)
Other Provisions & Contingencies 900.97 900.97

Note 44.8 Draw Down from Reserves

There was no draw down from reserves during the year.

Note 44.9 Concentration of Public Deposits, Advances, Exposures and NPAs

i) Concentration of Public Deposits (for Public Deposit taking/holding HFCs)

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Total Deposits of twenty largest depositors 8,774.44 6,158.83
Percentage of Deposits of twenty largest depositors to Total Deposits of the HFC 33.61% 26.98%

ii) Concentration of Loans & Advances

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Total Loans & Advances to twenty largest borrowers 4,694.00 3,686.00
Percentage of Loans & Advances to twenty largest borrowers to Total Advances 0.26% 0.23%
of the HFC

iii) Concentration of all Exposure (including off-balance sheet exposure)

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Total Exposure to Twenty largest borrowers / customers 4,694.00 3,686.00
Percentage of exposure to twenty largest borrowers / customers to Total 0.26% 0.23%
Exposure of the HFC on borrowers / customers

203
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

iv) Concentration of NPAs

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
Total Exposure to Top ten NPA accounts 675.11 703.14

v) Sector-wise NPAs

Percentage of NPAs to Total

Sector
Advances in that sector
A Housing Loan -
1 Individuals 0.59
2 Builders / Project Loans -
3 Corporates -
4 Others (specify) -
B Non – Housing Loans -
1 Individuals 0.83
2 Builders / Project Loans -
3 Corporates -
4 Others (specify) -

vi) Movement of NPAs

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
1 Net NPAs to Net Advances (%) 0.43% 0.20 %
2 Movement of NPAs (Gross)
a Opening balance 6,748.51 2,791.11
b Additions during the year 6751.97 5,568.63
c Reductions during the year 2149.23 1,611.23
d Closing balance 11,351.25 6,748.51
3 Movement of Net NPAs
a Opening balance 3,161.68 -
b Additions during the year 5,009.16 3,161.68
c Reductions during the year 224.22 -
d Closing balance 7,946.62 3,161.68
4 Movement of provisions for NPAs (excluding provisions on standard assets)
a Opening balance 3,586.83 2,791.11
b Provisions made during the year 69.22 3,488.28
c Write-off / Write-back of excess provisions 251.42 2,692.55
d Closing balance 3,404.63 3,586.83

204
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

vii) Overseas Assets

(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
NIL

viii) Off-Balance Sheet SPVs sponsored (which are required to be consolidated as per accounting Norms)
Name of the SPV sponsored

Domestic Overseas
NIL NIL

ix) Disclosure of Complaints

Customer Complaints
(H in Lakh)
As at As at
Particulars
March 31, 2019 March 31, 2018
1) No. of Complaints pending at the beginning of the year 20 9
2) No. of Complaints received during the year 3,142 306
3) No. of Complaints redressed during the year 3,128 295
4) No. of Complaints pending at the end of the year 34 20

Note 44.10 Disclosure under paragraph 29 of the Housing Finance Companies (NHB) Directions, 2010.

The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2010 except
for one instance detailed below.

“NHB vide its letter NHB(ND)/DRS/APPEAL-1/17/A-744/2019 dated January 17, 2019 has imposed a penalty of H5,900 (inclusive
of GST@18%) on account of contravention of section 32 of the NHB Act, 1987 and the Fair Practice Code issued by NHB which
is paid under protest by the Company.

Note 44.11 Derivatives

The following additional disclosures have been given in terms of the Notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated
February 09, 2017 issued by the National Housing bank.

a) Forward Rate Agreement (FRA) / Interest Rate Swap (IRS): No exposure

b) Exchange Traded Interest Rate (IR) Derivative: No exposure

c) Disclosures on Risk Exposure in Derivatives : Not applicable

Note 44.12 Securitisation

The following additional disclosures have been given in terms of the Notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated
February 09, 2017 issued by the National Housing bank.

The Company has no exposure under Securitisation.

205
Can Fin Homes Ltd

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 44.13 Gold Loan

The Company has not provided any loans on collateral of Gold and Gold jewelleries.

Note 44.14

The Company is a large Corporate as per the applicability criteria given under the SEBI Circular SEBI/HO/DDHS/CIR/P/ 2018/144
dated November 26, 2018.

Particulars Details
Name of the Company Can Fin Homes Limited
CIN L85110KA1987PLC008699
Outstanding Borrowings of the Company as on March 31, 2019, as applicable (H in Crore) 12,896.51
Highest Credit Rating during the Previous Year along with name of the Credit Rating Agency ICRA AAA (Outlook Negative)
Name of Stock Exchange in which the fine shall be paid, in case of shortfall in the required NSE
borrowings under the framework
*Outstanding borrowings of the company having original maturity of more than one year and excluding external commercial borrowings but including public
deposits with maturity more than 1 year.

Note 45 Corporate Social Responsibility (CSR)

Your Company constituted a Corporate Social Responsibility (CSR) Committee of the Board as prescribed under Section 135
of the Companies Act 2013 and has put the CSR policy in place. The Company has focussed in promoting education including
special education and employment in enhancing vocation skills especially among children. The Company also focuses on women
empowerment by Promoting gender equality, setting up homes and hostels for women and orphans; setting up old age homes,
day care centres, livelihood enhancement projects for the elderly & the differently abled. Reducing inequalities faced by socially
and economically backward group and contribution to Prime Minister’s National Relief Fund also forms part of its CSR activities.

The activities undertaken by the Company under CSR is Pan India basis and the projects are executed by our branches in those
areas. The total amount/ budget under CSR for the FY 2018-19 was H1,051 lakhs, (previous year H668 lakhs), out of which total
amount spent under the CSR activities is H606.24 lakhs (previous year H338 lakhs). The unspent amount of H445 lakhs is carried
forward as per provisions of Companies Act with the aim to go in for granular details/ appropriate projects before spending in
FY 19-20. A summary of CSR details as on March 31, 2019 is given below:
(H in Lakh)
March 31, 2019 March 31, 2018
Activities undertaken No. of No. of
Amount Amount
Beneficiaries Beneficiaries
Construction/ repair & renovation of Schools/ Hostels 7 167.99 7 71.57
Desks & benches/ Tables/ Almirah/ Green Board/ Chairs 32 88.56 57 143.09
etc.
Drinking water facility/ supply of other articles of 10 9.56 12 17.62
necessity etc.
Nali kali round tables/ chairs/ desk & benches/ drinking 13 52.61 25 67.56
water facility
Electrical & Electronic Items 1 0.72 3 2.71
Toilet Facility in Schools 1 1.18 1 3.36

206
 Financial Statements | Annual Report 2018-19

Notes forming part of Financial Statements

for the year ended March 31, 2019

Note 45 Corporate Social Responsibility (CSR) (Contd..)

(H in Lakh)
March 31, 2019 March 31, 2018
Activities undertaken No. of No. of
Amount Amount
Beneficiaries Beneficiaries
Scholarship to students 3 5.80 1 0.35
Equipment to School 3 5.61 4 14.54
Equipment to Hospital 7 148.67 1 7.50
Equipment to old age homes 4 11.07 1 1.69
Eradicating Hunger 3 71.53 - -
Solar lighting system 3 24.88 1 0.34
Environmental Sustainability 1 11.92 - -
Tree planting under environmental protection/ 2 6.14 3 7.52
sustainability/ saplings with tree guards/ pots to the
customers.
Total 90 606.24 116 337.85

Note 46 Previous years figures have been re-arranged/ regrouped wherever necessary to correspond with the current year’s
classification/disclosure

As per our report of even date attached For and on behalf of the Board

For Varma & Varma, Bharati Rao S K Hota S M Bhandiwad

Chartered Accountants Chairperson Managing Director Wholetime Director
FRN:- 004532S DIN: 01892516 DIN: 07491088 DIN: 08193978

R. Kesavadas G Naganathan Dr Y Vijayanand S Subramanian

Partner Director Director Director
Membership No: 23862 DIN: 00423686 DIN: 00594503 DIN: 07901414

Debashish Mukherjee Atanu Bagchi Veena G Kamath

Place: Bangalore Director Chief Financial Officer Company Secretary
Date: April 30, 2019 DIN: 08193978

207
Can Fin Homes Ltd

List of Branches, AHLCs & SOs as on May 23, 2019

Registered Office Bangalore – Electronic City Bangalore-Koramangala

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
No.29/1, Sir M N Krishna Rao Road, “VIJAY ICON” Sr.No.61/11, No.586, 2nd Floor, 80 ft. Road,
Bangalore – 560 004 Hoskur Gate, Anantha nagar road Near Police Station, Opp. Bethany School,
Tel: 080 26567655, 26563646 Electronic City, 8th Block, Koramangala,
E-mail Id: development@canfinhomes.com Bangalore – 560 100 Bangalore-560 095
Tel: 080-27833633 Tel: 080-41115689/41112897
Branches E-mail Id: electroniccity@canfinhomes.com E-mail Id: koramangala@canfinhomes.com
BLR - Basavanagudi
Bangalore-Hesaraghatta road Bangalore – K R Puram
CAN FIN HOMES LTD.
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
No.93/04 1st Floor,
No 765, 1st Floor, MEI Layout, No- 414, Pooja Complex, 2nd Floor
”Shanti Parvath”, South End circle,
60 feet Road, Bagalagunte, Old Madras Road, K R Puram,
Basavanagudi,
Hesaraghatta Road, Bangalore – 560 036
Bengaluru-04
Bangalore-560 073 Tel: 080 - 25619333
Tel: 080 – 2656 0277, 41216633
Tel: 080-28390315 E-mail Id: krpuram@canfinhomes.com
E-mail Id: basavanagudi@canfinhomes.com
E-mail Id: hesaraghatta@canfinhomes.com
Bangalore-Marathahalli
Bengaluru – Begur
Bangalore – HRBR Layout CAN FIN HOMES LTD.
CAN FIN HOMES LTD.
CAN FIN HOMES LTD. No 14,Ground Floor “Krishna Towers”
No-2&4, Shanti Priya Layout,
No. 2C-707, Ground Floor, 7th Main, Outer Ring Road Cross (service road),
Devarachikkanahali rd,
2nd Cross, 1st Block, HRBR Layout, Marathahalli,
Behind Govt. High School,
Bangalore – 560 043 Bangalore-560 037
Begur, Bengaluru – 560 068
Tel: 080-2545 0092 Tel: 080-25401332
Tel: 080 – 25740123
E-mail Id: hrbr@canfinhomes.com E-mail Id: marathahalli@canfinhomes.com
E-mail Id: begur@canfinhomes.com
Bangalore-Jayanagar Bangalore - Nelamangala
Bangalore- Bidadi
CAN FIN HOMES LTD. CAN FIN HOMES LTD..
CAN FIN HOMES LTD.
“Sajini”, #69, Old no.35, Ist Floor, Nandi Complex, K.No.2151,
Sri Annapoorneshwari Complex,
Ground & 1st Floor,12th Main, Opp. Taluka ,
1st Floor (above Canara Bank),
Jayanagar 3rd Block, Panchayath Office,Subhash Nagar,
BGS Road, Bidadi,
Bangalore-560 011 Nelamangala,
Bangalore-562 109
Tel: 080-26630776/26630501 Bangalore-562 123
Tel: 080 – 27282580
E-mail Id: jayanagar@canfinhomes.com Tel: 080-27722664
E-mail Id: bidadi@canfinhomes.com
E-mail Id: nelamangala@canfinhomes.com
Bangalore – Kanakapura Road
Bangalore-Cunningham Road
CAN FIN HOMES LTD. Bangalore-Sahakarnagar
CAN FIN HOMES LTD.
No.58, 1st Floor, CAN FIN HOMES LTD.
No - 19/5, ‘Kareem Towers’, 1st Floor,
Sri Channakeshava Swamy Nilaya 116/3, 1st Floor, G Block
Cunningham Road,
6th Cross, Raghuvanahalli, Opp. IT 60 Feet Road,Sahakarnagar
Bangalore - 560 052
Kanakapura Main Road Bangalore-560 092
Tel: 080-22266430/22257906
Bangalore – 560 062 Tel: 080-23636425/23635730
E-mail Id: cunninghamroad@canfinhomes.com
Tel: 080-29751565 E-mail Id: sahakarnagar@canfinhomes.com
Bangalore -Devanahalli E-mail Id: kanakapura@canfinhomes.com
Bangalore - Sarjapur Road
CAN FIN HOMES LTD.
Bangalore-Kengeri CAN FIN HOMES LTD.
No.19/18/2598/2431/2105
CAN FIN HOMES LTD. No.1569, 2nd Floor, Outer Ring Road
1st Floor, Raja Rao Complex,
#445,Gnd Flr,4th Main 5th crs, Sec-1, HSR Layout
Opp. SBI, Tippu Sultan Road
Near Shreya Hospital Bangalore-560 102
Devanahalli, Bangalore – 562 110
Kengeri Satellite Town, Tel: 080 - 22583623/22583643
Tel: 080-27682007
Bangalore-560 060 E-mail Id: sarjapur@canfinhomes.com
E-mail Id: devanahalli@canfinhomes.com
Tel: 080-28486098/99
E-mail Id: kengeri@canfinhomes.com

208
 List of Branches | Annual Report 2018-19

Bangalore-Uttarahalli Hubli Hassan

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
#39,Ground Floor, Ground Floor, Eureka Junction, EWS-321, 1st Flr, SLR Complex,
Subramanyapura Main Road Giriraj Annexe 9th cross, Opp. Mini Vidhanasoudha,
Chikkalasandra, Near Prarthana School Circuit House Road, 1st Stage, Kuvempunagar Extension,
Bangalore-560 061 Hubli-580 029 Hassan-573201, Karnataka
Tel: 080-26394003/26394009 Tel: 0836-2256390,2256464 Tel: 08172 - 263326
E-mail Id: uttarahalli@canfinhomes.com E-mail Id: hubli@canfinhomes.com E-mail Id: hassan@canfinhomes.com

Bangalore-Vijayanagar Mangalore Guntur

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
No 148/E, 1st Floor, Ground Floor, Canara Bank Building 4-1-1, 1st Floor, Gayatri Plaza,
Siddalingeswara Towers Balmatta Road, Main Road, Koritipadu,
17th MAIN, Mangalore-575 001 Guntur-522 007
East of Chord Road Tel: 0824-2440193/2442593 Tel: 0863-2333064
Vijayanagar, E-mail Id: mangalore@canfinhomes.com E-mail Id: guntur@canfinhomes.com
Bangalore-560 040
Shimoga Kakinada
Tel: 080-23404965/23359162
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
E-mail Id: vijayanagar@canfinhomes.com
No. 599, Ist Floor, “MARUTHI”, D.No.11-14-1, 1st Floor, M U Towers,
Yelahanka 60 Feet Main Road, Police Chowki Circle, Near Balatripura,
CAN FIN HOMES LTD. Vinobanagar, Sundari Temple, Ramaraopeta,
No.1099, 1st Floor, Shimoga-577 204 Kakinada-533 001
1st B Main Road, 16th B Cross, Tel: 08182-254110 Tel: 0884-2377898
Yelahanka, E-mail Id: shimoga@canhomes.com E-mail Id: Kakinada@canfinhomes.com
Bangalore-560064
Mandya Visakhapatnam Steel Plant
Tel: 080-28564502
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
E-mail Id: yelahanka@canfinhomes.com
No.1689, 1st Floor, D.No.31- 27 -56/7,
Banneraghatta 100 Feet Road (Double Road), 1st Floor, Opp. Annapurna theatre,
CAN FIN HOMES LTD. Vidyanagar, Kurmannapalem,
No. 1 & 2, 2nd Floor, 1th Cross, Mandya – 571 401 Visakhapatnam – 530046.
Ramakrishnappa Layout, Bannerghatta Road Tel: 0823 – 2222454 Tel: 0891 -2747599
Gottigere Village, E-mail Id: mandya@canfinhomes.com E-mail Id : vizagsteelplant@canfinhomes.com
Bangalore – 560083
Tumkur Vijayawada
Tel: 080-25780611
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
E-mail Id: bannerghatta@canfinhomes.com
1st Floor, Sri Seetharama Temple Bldg. 1st Floor, No.40-5-19/17,
Belgaum Someshwarapura Main Road Near Siddhartha College
CAN FIN HOMES LTD. Tumkur-572 102 Bus Stop, Mogalrajpuram
Shop No. 5, Ground Floor, Tel: 0816-2251514 Vijayawada-520 010
Classic Manor, Somwar Peth E-mail Id: tumkur@canfinhomes.com Tel: 0866-2474781/2481731
Tilakwadi, E-mail Id: canfinvja@sify.com
Mysore
Belgaum – 590 006
CAN FIN HOMES LTD. Visakhapatnam
Tel: 0831 - 2464577
No. 16, 1st Floor, Sita Vilas Road, CANFIN HOMES LTD.
E-mail Id: belgaum@canfinhomes.com
Near Marimallappa School, Ground Floor, Dn: 48-8-4
Davangere Chamaraja Mohalla, Behind Titan Showroom
CAN FIN HOMES LTD. Mysore-570 024 Chaitanya College Lane
D.No.633, 1st Floor, K B Extension, Tel: 0821-2429699/2422377 Dwarakanagar
Opp. to Bellary Siddamma Park, E-mail Id:mysore@canfinhomes.com Visakhapatnam-530016
Trishul Talkies Road, Tel: 0891-2746736, 2591167
Udupi
Davanagere - 577 002 E-mail: visakhapatnam@canfinhomes.com
CAN FIN HOMES LTD.
Tel: 0819-2270345/2235006
“Shri Malshi” 1st Floor ,
E-mail Id: davangere@canfinhomes.com
Court Back Road
Udupi – 576 101
Tel: 0820 – 2520644
E-mail Id: udupi@canfinhomes.com

209
Can Fin Homes Ltd

Tirupati Hyderabad-Gachibowli Hyderabad-Tarnaka

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
D./No.19-8-169, SBI Colony, D.No.2-52/88, 2nd Floor, # 12-13-416/1, 2nd Floor,
Near Vijaya Bharathi TVS Show Room Sai Teja Enclave, Indira Nagar, Street No- 1,
Tirupati – 517 501 Gachibowli, Tarnaka, Secunderabad-500 017
Tel: 0877-2242692 Hyderabad – 500 032 Tel:040-27005553
E-mail Id: tirupati@canfinhomes.com Tel: 040-23000030 E-mail Id:taranaka@canfinhomes.com
E-mail Id: gachi.bowli@canfinhomes.com
Nellore Khammam
CAN FIN HOMES LTD. Hyderabad - Kompally CAN FIN HOMES LTD.
D No. 15-276, 1st Floor, CAN FIN HOMES LTD. D. No. 11 – 5 – 12/6, 1st Floor, Wyra Road,
Above Syndicate Bank, 1st Floor, Bindu Elegance, Plot No.01, Z.P. Centre
Brundavanam, Sy. No.12,24, Beside D-Mart, Above TVS Near KVM High School,
Nellore – 524 001 Showroom Petbasheerbad Kompally Khammam - Telengana
Tel: 0861 – 2334781 Hyderabad - 500067 Tel: 08742 238161
E-mail Id: nellore@canfinhomes.com Tel: 040-27164210 E-mail Id: khammam@canfinhomes.com
E-mail Id: Kompally@canfinhomes.com
Ongole Kurnool
CAN FIN HOMES LTD. Hyderabad-Nampally CAN FIN HOMES LTD.
D No. 7-331(4), Ist Floor, CAN FIN HOMES LTD. Shop No. 18 & 19, 1st Floor,
Above State Bank of Mysore, Doyen Trade House, 5-9-100 T. J. Shopping Mall, SBI Circle
Mangamooru Donka, Public Garden Road, R. S. Road, Kurnool - 518004
Ongole – 523 002 Hyderabad-500 001 Andhra Pradesh
Tel: 08592-282023 Tel: 040-23233385/23231626 Tel: 08518 - 222335
E-mail Id: ongole@canfinhomes.com E-mail Id: hyderabad@canfinhomes.com E-mail Id: kurnool@canfinhomes.com

Rajahmundry Hyderabad – RC Puram Vizianagaram

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
D.No.75-6-38,1st Flr,North East Corner, Plot No. 28 Brahmarambika Colony, Plot No. 8 D.No.8-12-5, Ground Floor,
B V R Complex Beeramguda, Opp. CTO Office
Prakash Nagar Main Road, Ramachandrapuram, Siddharthanagar, Vizianagaram - 535002
Rajahmundry – 533103, Andhra Pradesh Hyderabad – 502 032 Andhra Pradesh
Tel: 0883-2474781 Tel: 08455 – 280777 Tel: 08922 237599
E-mail Id: rajahmundry@canfinhomes.com E-mail Id: ramachandrapuram@canfinhomes.com E-mail Id: vizianagaram@canfinhomes.com

Gollapudi Hyderabad-Kukatpally Eluru

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
D No.76-14-95/11, 1st Floor APSRTC Unit No-201, D No 25-13-4/1, N R Plaza,
Workshop Road Vijaya Sai Towers, Narasimharaopet, More Super Market Road,
Bhavanipuram, Gollapudi, Opp: BJP Office, Eluru-534006, W.G.Dist Andhra Pradesh
Vijayawada – 520012 Kukatpally Main Road, Tel: 08812-245245
Tel: 0866 - 6888668 Hyderabad - 500 072 E-mail Id: eluru@canfinhomes.com
E-mail Id: gollapudi@canfinhomes.com Tel: 040 – 23053459/23055459
Mangalagiri
E-mail Id: kukatpally@canfinhomes.com
Warangal CAN FIN HOMES LTD.
CAN FIN HOMES LTD. Hyderabad – LB Nagar 427-428, Ankamma’s Plaza, 1st Floor,
Kandakatla’s Gateway, H.No.15-11-503 & 504, CAN FIN HOMES LTD. Middle Centre, Tenali Road
KU Road, Naimnagar, Hanamkonda, #3-11-413/2, Mangalagiri, Guntur - 522 503
Warangal-506001 Shiva Ganga Colony, Andhra Pradesh
Tel: 0870-2442166 LB Nagar, Tel: 08645 234589
E-mail Id: warangal@canfinhomes.com Hyderabad – 500 074 E-mail Id: mangalagiri@canfinhomes.com
Tel: 040 - 49501072
Karimnagar CHN - Chengalpattu
E-mail Id: lbnagar@canfinhomes.com
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
D.No.2-3-31, Lahoti House, 1st Floor, Plot No.28, Ground Floor,
Bhoiwada, Lawyer Krishnaswamy Street,
Karimnagar-505001 Vedachalam Nagar
Tel: 0878-2243299 Chengalpattu – 603 001
E-mail Id: karimnagar@canfinhomes.com Tel: 044 - 27426466
E-mail Id: Chengalpattu@canfinhomes.com

210
 List of Branches | Annual Report 2018-19

Chennai-Ambattur Sriperumbudur Salem

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Old No 29A, New No 7A, Grnd Floor, No.122 -123, 1st Floor, #1,Johnson pet Road,
High School Road XVB Building, Gandhi Road, Hastampatty,
Secretriat Colony, Ambattur Sriperumbudur – 602 105 Salem-636 007
Chennai-600 053 Tel: 044 - 27162188 Tel: 0427-2420017
Tel: 044-26572050 E-mail Id: sriperumbudur@canfinhomes.com E-mail Id: salem@canfinhomes.com
E-mail Id: ambattur@canfinhomes.com
Hosur Trichy
Chennai-Anna Salai CAN FIN HOMES LTD. CAN FIN HOMES LTD.
CAN FIN HOMES LTD. Door No 74,1st Floor, 3rd Cross, Kamarajar B-11,2nd Floor,Star Towers
NO.770/A, Spencer Tower Annexe Colony, Thillai Nagar
Anna Salai, Near Balaji Theatre, Trichy-620 018
Chennai-600 002 Hosur-635 109 Tel: 0431-2744100/2744200
Tel: 044-28497026/28496318 Tel: 04344-220001/220040 E-mail Id: trichy@canfinhomes.com
Fax: 28497027 E-mail Id: hosur@canfinhomes.com
Namakkal
E-mail Id: chennai@canfinhomes.com
Vellore CAN FIN HOMES LTD.
Chennai-Perungudi CAN FIN HOMES LTD. No.387/1, Aarthi Complex, 1st Floor,
CAN FIN HOMES LTD. #99D, Vellore Road, Katpadi, Salem Road,
No:14, 1st Floor, Old Mahabalipuram Road, Vellore – 632 007 Namakkal – 637001
Kandanchavadi, Perungudi, Tel: 0416-2242013 Tel: 04286-274252
Chennai-600 096 E-mail Id: vellore@canfinhomes.com E-mail Id: namakkal@canfinhomes.com
Landmark: Above Kotak Mahindra Bank/
Dindigul Tirunelveli
Opp. to Andrew Yule Company.
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Tel: 044-24965656
#91, Sona Towers, Shop no. 21-23, Thiripura Arcade,
E-mail Id: omr@canfinhomes.com
Palani Road, IIIrd Floor, No. 75–A,
Chennai-Porur Dindigul – 624 001 Trivandrum High Road,
CAN FIN HOMES LTD. Tel: 0451 – 2433272 , Palayamkottai,
44/2,Somasundaram avenue E-mail Id: dindigul@canfinhomes.com Tirunelveli – 627 002
Sakthi Nagar Main Road, Tel: 0462-2578567
Erode
Porur E-mail Id: tirunelveli@canfinhomes.com
CAN FIN HOMES LTD.
Chennai-600 116
#64/5, GRDI Complex, 2nd Floor, Tiruchengode
Tel: 044-22520032
Perundurai Road, Erode CAN FIN HOMES LTD.
E-mail Id: porur@canfinhomes.com
Erode –638011 No.86/17, Royal Towers, Sankari Main Road,
Chennai-Red Hills Tel: 0424 – 2255563 Seetarampalayam (post), Opp. Pullikara Mill,
CAN FIN HOMES LTD. E-mail Id: erode@canfinhomes.com Tiruchengode - 637 209
No.7, Madhavaram High Road, Tel: 04288 - 255057
Karur
(Off GNT Road), Red Hills, E-mail Id: tiruchengode@canfinhomes.com
CAN FIN HOMES LTD.
Chennai–600 052.
MM Complex, 1st Floor, Virudhunagar
Tel No: 044-26322077
9/1, Mohan Store Layout CAN FIN HOMES LTD.
E-mail : redhills@canfinhomes.com
Near Kannan Departmental Store, Door No.7/3B(1st Floor),APV Complex,
Chennai-Tambaram Sengunthapuram, Pullukaoorani Road,
CAN FIN HOMES LTD. Karur-639 002 Virudhunagar - 626 001
No.52,1st Floor, Raj kamal complex, Tel: 04324-230970 Tel: 04562-246566
Gandhi Road,Tambaram West E-mail Id: karur@canfinhomes.com E-mail Id: virudhunagar@canfinhomes.com
Chennai-600045
Madurai Coimbatore
Tel: 044-22260600/22260640
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
E-mail Id: tambaram@canfinhomes.com
564/1,Ground Floor, Sakthi Towers 439, Lawrance Complex,
Chennai-Thiruvallur 12th East Cross Street, Cross Cut Road, Gandhipuram,
CAN FIN HOMES LTD. Behind Naveen Bakery Coimbatore-641 012
#52, 1st Floor, TNHB, Anna Nagar, Tel: 0422-2235977/2230163
Kakalur Main Road, Madurai-625 020 E-mail Id: coimbatore@canfinhomes.com
Thiruvallur – 602 001 Tel: 0452-2524400/2539799
Tel: 044 – 27666161 E-mail Id: madurai@canfinhomes.com
E-mail: tiruvallur@canfinhomes.com

211
Can Fin Homes Ltd

Coimbatore-P N Palyam Trivandrum NCR-Faridabad

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
City Palace, 1st Floor, No.28/2452, Ground Floor, M G Road #59-60,1st Floor, Neelam Bata Road,
Railway Feeder Road, Trivandrum-695 001 NIT Opp. RG Stone Hospital,
Near LMW, Tel: 0471-2477446/2461446 Faridabad-121001
P N Palyam E-mail Id: trivandrum@canfinhomes.com Tel: 0129-2436596/2436527
Coimbatore-641 020 E-mail Id: faridabad@canfinhomes.com
Mumbai-Borivali
Tel: 0422-2693235
CAN FIN HOMES LTD. NCR - Greater Noida
E-mail Id: pn.palyam@canfinhomes.com
No.101, 1st Floor, CAN FIN HOMES LTD.
Tirupur ”Ganjawalla Elegance” Shop. No – 4, 4th Floor,
CAN FIN HOMES LTD. Opp. State Bank of Patiala, Plot No – 3, S L Towers,
No.302/3, 1st Floor, Above Canara Bank, Ganjanwalla Lane, Borivali West, Alpha – I, Opp. Golf Course,
Palladam Road, Tirupur 641604, Mumbai -400 092 Greater Noida – 201 308
Tamil Nadu Tel: 022-28924369 / 28925385 / 28918218 Tel: 0120 - 2396221
Tel: 0421 - 2215977 Fax: 28908545 E-mail Id: greaternoida@canfinhomes.com
E-mail Id: tirupur@canfinhomes.com E-mail Id: mumbai@canfinhomes.com
NCR-Gurgaon
Thoothukudi Mumbai- Boisar CAN FIN HOMES LTD.
CAN FIN HOMES LTD. CAN FIN HOMES LTD. SCO No. 34 & 35, 1st Floor,
No. 69D/4, Diya Corner, 1st Floor 1st Flr, Yash Siddi Residency, Palghar Road, Sector 10-A, (Above Canara Bank)
Second Street, Thoothukudi - 628003 Navapur Naka, Boisor-401501, Maharastra Gurgaon-122 002
Tamil Nadu Tel: 02525 654654 Tel: 0124-2370760
Tel: 0461 2333636 E-mail Id: boisar@canfinhomes.com E-mail Id: gurgaon@canfinhomes.com
E-mail Id: thoothukudi@canfinhomes.com
Surat NCR-New Delhi
Kumbakonam CAN FIN HOMES LTD. CAN FIN HOMES LTD.
CAN FIN HOMES LTD. U-16, 1st Floor, Atlanta Shopping Mall, 1st Floor, DDA Building,
No. 137, 1st Floor Near VIP Road, Bhimrad Canal Road Near Paras Cinema, Nehru Place,
Gandhi Adigal Salai, Kumbakonam - 612001 Althan, Surat - 395017,Gujarat New Delhi-110 019
Tamil Nadu Tel: 8000976250 Tel: 011-26487529/26435815/26430236
Tel: 0435 2400021 E-mail Id: surat@canfinhomes.com Fax: 26473318
E-mail Id: kumbakonam@canfinhomes.com E-mail Id: cfhldelhi@canfinhomes.com
Mumbai-Vashi
Calicut CAN FIN HOMES LTD. NCR-Noida
CAN FIN HOMES LTD. “GIRIRAJ”, 1st Floor, SS-4/210 & 212 CAN FIN HOMES LTD.
18/1145 D, Ist Floor (Opp. Meghraj Multiplex), Plot No. C-3, 1st Floor
K T Commercial Complex, Sector-2, Vashi (Above Canara Bank)
Jail Road,Calicut-673 004 Navi Mumbai-400 703 Sector – 1
Tel: 0495-2704883/2704884 Tel: 022-27820168/27820169 Noida – 201 301
E-mail Id: calicut@canfinhomes.com E-mail Id: navimumbai@canfinhomes.com Tel: 0120-2970164 / 65 / 67
E-mail Id: noida@canfinhomes.com
Cochin Panvel
CAN FIN HOMES LTD. CAN FIN HOMES LTD. NCR-Pitampura
39/3728, Vishnupriya, Manikkiri, No.101, 1st Floor , Junction 406/1B, K Mall CAN FIN HOMES LTD.
M G Road,Pallimukku, Takka Road, DP-11, 1st Flr, Local Shopping Complex,
Ernakulam, New Panvel-410206 Above CBE-Lounge
Cochin-682 016 Tel: 022-27459355 Pitampura,
Tel: 0484-2356855/2356826 E-mail Id: panvel@canfinhomes.com New Delhi-110 034
E-mail Id: cochin@canfinhomes.com Tel: 011-27315619
Sonepat
E-mail Id: pitampura@canfinhomes.com
Trichur CAN FIN HOMES LTD.
CAN FIN HOMES LTD. SCO-3, 1st Floor,
1st Floor, MARVA ARCADE, Main Market,Sector – 14,
Machingal Lane, M G ROAD, Sonepat – 131 001
Trichur-680 001 Tel: 0130-2235101
Tel: 0487-2332421/2331952 E-mail Id: sonepat@canfinhomes.com
E-mail Id: trichur@canfinhomes.com

212
 List of Branches | Annual Report 2018-19

Nagpur Bhopal Dehradun

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Plot No M-3, 1st Floor, Plot No 1, 1st Floor, Zone 2, Shanthi Plaza,1st Floor, GMS Road,
West Side WHC Main road, M P Nagar Near Wadia Institute
Near Aath Raasta Square, Scientific Layout, Bhopal-462 011 Dehradun-248001
Laxminagar, Tel: 0755-2577939/2577935 Tel: 0135 -2520242
Nagpur - 440022 E-mail Id: bhopal@canfinhomes.com E-mail Id: dehradun@canfinhomes.com
Tel: 0712-2233898
Gwalior AGRA
E-mail Id: nagpur@canfinhomes.com
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Nashik 1st Floor, Business Centre, #7/9,1st Floor, Sector-9,
CAN FIN HOMES LTD. Plot.No.31, Near Income Tax City centre Awas Vikas Colony, Near Kargil Petrol Pump,
No.F-12, 1st Floor, Suyojit Sankul Gwalior – 474 009 Sikandara-Bodla Road,
Above Bafna Jewellers, Sharanpur, Tel: 0751-2233865 Agra- 282007
Nashik – 422002 E-mail Id: gwalior@canfinhomes.com Tel: 0562-4008500
Tel: 0253 2318305 E-mail Id: agra@canfinhomes.com
Indore
E-mail Id: nashik@canfinhomes.com
CAN FIN HOMES LTD. Varanasi
Goa Kuber House’,162, 1st Floor, CAN FIN HOMES LTD.
CAN FIN HOMES LTD. Kanchan bagh Main Road, D-58/12 A-2, 2nd Floor,
307&308, 3rd Floor, Indore – 452 001 “Jasmaa Complex”, Above Ksheer Sagar,
KAMAT TOWERS Tel: 0731 -2521194/95 Gandhi Nagar, Sigra,
Patto, Panjim, E-mail Id: indore@canfinhomes.com Varanasi-221010
Goa-403 001 Tel: 0542-2220221
Chandigarh
Tel: 0832-2438517,2438518 E-mail Id: Varanasi@canfinhomes.com
CAN FIN HOMES LTD.
E-mail Id: goa@canfinhomes.com
SCO-87, 1st Floor Raipur
Pune Sector 47-D CAN FIN HOMES LTD.
CAN FIN HOMES LTD. Chandigarh-160 047 Sai Towers Building, 1st Floor
101, UMA Apartment,CTS-2027, Tilak Road, Tel: 0172-2632925, 2632097 Besides Azad Chowk Police Station,
Near S.P. College,1st Floor, Sadashiva Pet E-mail Id: chandigarh@canfinhomes.com Amapara, G E Road ,
Pune - 411030. Raipur-492 001
Jodhpur
Tel: 020-24321030/24321031 Tel: 0771-2531100/4097077
CAN FIN HOMES LTD.
E-mail Id: pune@canfinhomes.com E-mail Id: raipur@canfinhomes.com
No 301, 3rd Floor, Front side,
Dharuhera Sabu Tower, 2nd Chopasani Road, Patna
CAN FIN HOMES LTD. Jodhpur, Rajasthan. CAN FIN HOMES LTD.
1st Floor, Near Hanuman Mandir, Tel: 0291-2640128 “Deep House”, 2nd Floor
Sohna Road, E-mail-Id: jodhpur@canfinhomes.com Nala Road (Near Shiva Mandir)
Dharuhera - 123 106 Patna – 800 004
Lucknow
Haryana, Tel: 0612-2721046, 2721047
CAN FIN HOMES LTD.
Tel: 01274 - 242381 E-mail Id: patna@canfinhomes.com
#3, Shahnajaf Road, Ist Floor,
E-mail Id: dharuhera@canfinhomes.com
SPEED BUILDING, Heazrat Ganj Baroda
Rohtak Lucknow-226 001 CAN FIN HOMES LTD.
CAN FIN HOMES LTD. Tel: 0522-4065123/2230331 No.235, 2nd Floor, Kanha Capital,
1st Floor, Anand Plaza, Shop No 104 E-mail Id: lucknow@canfinhomes.com Opp. Express Hotel,
Near Chottu Ram Chowk, R.C. Dutt Road, Alkapuri,
Meerut
Rohtak – 124 001 Vadodara - 390 007
CAN FIN HOMES LTD.
Tel: 01262-257852 Tel: 0265-2388326/2388327
#5, Pinnacle Tower 1st , Floor
E-mail Id: rohtak@canfinhomes.com E-mail Id: baroda@canfinhomes.com
Vaishali Corner, Ghar Road
Karnal Meerut-250 002
CAN FIN HOMES LTD. Tel: 0121-2779985
1st Floor,SCO-2,Sec-9, E-mail Id: meerut@canfinhomes.com
HUDA Market, Karnal-132001,Haryana
Tel: 0184-2231555
E-mail Id: karnal@canfinhomes.com

213
Can Fin Homes Ltd

Ahmedabad Mansarovar Berhampur

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
No.203, Samedh Building, 23/49, 1st Floor, Near KL Saini Stadium, Plot No.1168/2422, Ground Floor,
2nd Floor, C G Road, Madhyam Marg, Mansarovar, Hilipatna, Near Nehru Park
Near Associated Petrol Pump Jaipur- 302020 Station Road, Berhampur - 760 005
Ahmedabad-380 006 Tel: 0141-2974555 Odisha
Tel: 079-26405312/26560759 E-mail Id: mansarovar@canfinhomes.com Tel: 0680 2221888
E-mail Id: ahmedabad@canfinhomes.com E-mail Id: berhampur@canfinhomes.com
Ajmer
Bhubaneswar CAN FIN HOMES LTD. Bilaspur
CAN FIN HOMES LTD. Shop No.10, 1st Floor, CAN FIN HOMES LTD.
Plot No. SCR - 44, 1st Floor, Bhandana Complex, Nasirabad Road, 1st Floor, B C Plaza, Khata No.1538/3,
Kharavela Nagar, Unit 3 Opp. Balupura Road, Adarsh nagar Vikas Nagar, Mungeli Road
Bhubaneswar – 751 001 Ajmer-305001 Mangala Chowk, Bilaspur - 495001
Tel: 0674-2393345 / 0674-2393061 Tel: 0145-2680249 Chhattisgarh
E-mail Id: bhubaneswar@canfinhomes.com E-mail Id: ajmer@canfinhomes.com Tel: 07752 404571
E-mail Id: bilaspur@canfinhomes.com
Jaipur Ambala
CAN FIN HOMES LTD. CAN FIN HOMES LTD. Aurangabad
Office No.S-14 to S-21, 2nd Floor, Showroom No.4, 1st Floor, Prem Nagar, CAN FIN HOMES LTD.
GeejgarhTowers, Hawa Sadak, Old Delhi Road, Ambala, Office No. 101, 1st Floor,
Jaipur-302006 Harayana-134003 Anand Business Center
Tel: 0141-2211644/2211645 Tel: 0171 - 2550560 C.T.S No. 17303,
E-mail: jaipur@canfinhomes.com E-mail Id: Ambala@canfinhomes.com Opp. Sant Eknath Rang Mandir
New Usmanpura,
Kota Allahabad
Aurangabad - 431005
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Tel: 9944453331
1-C-18, SFS, Front Side, 1st Floor, 43/10, 1st Floor, Sardar Patel Marg Civil Lines
E-mail Id: aurangabad@canfinhomes.com
Sheela Choudhary Road, Talwandi, Allahabad,
Kota-324 005. Allahabad - Uttar Pradesh Bhavnagar
Tel: 0744-2426600 Tel: 0532 2260680 CAN FIN HOMES LTD.
E-mail Id: kota@canfinhomes.com E-mail Id: allahabad@canfinhomes.com Flat No. 202, 2nd Floor, Corporate House
Opp. HDFC Bank Waghawadi Road
Udaipur Kanpur
Bhavnagar - 364002
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Tel: 0278-2562056
No-101, 1st Floor, Block No.63/3, Mall Road,
E-mail Id: bhavnagar@canfinhomes.com
Plot No-643, Subhash Villa Harbans Mohal, Kanpur - 208001
Hiranmagri Sec 13, Uttar Pradesh Chakan
Udaipur- 313001. Tel: 0512-2302067 CAN FIN HOMES LTD.
Tel: 0294-2485770 E-mail Id: kanpur@canfinhomes.com Office No - 171, Dnyanda City, Dnyanda
E-mail Id: Udaipur@canfinhomes.com Builders, Dnyanda / Jadhav Commercial Center
Kalyan
Near Chakan ST Stand,
Pondicherry CAN FIN HOMES LTD.
Chakan Shikrapur Road
CAN FIN HOMES LTD. Unit No 1, 1st Floor,Om Supreme Building,
Chakan - 410501
D No.115, 1st Floor, Vysial Street, Rambhau, Patwardhan Road,
Tel: 02135-249230
Pondicherry-605 001 Nr.D-Mart, Ball Bazar
E-mail Id: chakan@canfinhomes.com
Tel: 0413-2338447 Kalyan,
E-mail Id: pondicherry@canfinhomes.com Thane-421301 Jamnagar
Tel: 0251-2304040 CAN FIN HOMES LTD.
Ghaziabad
E-mail Id: kalyan@canfinhomes.com Office No. 239-240, 2nd Floor,
CAN FIN HOMES LTD.
Madhav Plaza
C-18 1st Floor, RDC Rajnagar, Jabalpur
Near Lal Bunglow, Opp. SBI
NCR-Ghaziabad 201002 CAN FIN HOMES LTD.
Jamnagar - 361001
Tel: 0120 – 2825555 No.78, 1st Floor, J R Sama Complex,
Tel: 0288 2554151
E-mail Id: ghaziabad@canfinhomes.com Naramada Road
E-mail Id: jamnagar@canfinhomes.com
Gorakpur, Jabalpur - 482 001
Madhya Pradesh
Tel: 0761 2411886
E-mail Id: jabalpur@canfinhomes.com

214
 List of Branches | Annual Report 2018-19

Kolhapur Rewa Nizamabad

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
No. 560, E, 1st Floor, Mahavir Bhavan Hall No. 5A 2/4 Block A, H No 5-6-370, 1st Floor, Road No 3
Shahapuri Vyapari Peth, 2nd Floor, Shilpi Plaza Hyderabad Road,
Kolhapur - 416001 Rewa - 486001 Land Mark - Opp. Lane to More Super Market,
Tel: 0231 2666478 Tel: 7625013270 Andhra Bank
E-mail Id: Kolhapur@canfinhomes.com E-mail Id: rewa@canfinhomes.com Saraswathi Nagar,
Nizamabad - 503001
Rajkot Sagar
Tel: 08462 223244
CAN FIN HOMES LTD. CAN FIN HOMES LTD.
E-mail Id: nizamabad@canfinhomes.com
No.202, Corporate Levels, 2nd Floor, 1st Floor, Central Bank Building
150 feet Ring Road Gopal Ganj, Siddipet
Near Ayodhya Chowk Sagar - 470001 CAN FIN HOMES LTD.
Rajkot - 360005 Tel: 07582-220456 Office No. 101, D No. 18-54, 1st Floor,
Tel: 9886907291 E-mail Id: sagar@canfinhomes.com Prajay Srinilayam
E-mail Id: rajkot@canfinhomes.com Beside New Bus Stand
Durgapur
Siddipet - 502103
Hinjewadi CAN FIN HOMES LTD.
Tel: 08457 230122
CAN FIN HOMES LTD. UCP-001, Ground Floor
E-mail Id: siddipet@canfinhomes.com
1st Floor, Phadatare Heights, Bengal-Ambuja City Centre
Above ICICI Bank Ltd Durgapur - 713 216 Jharsuguda
Near D’Mart Tel: 0343-2546404/625013273 CAN FIN HOMES LTD.
Hinjewadi, Pune - 411012 E-mail Id: durgapur@canfinhomes.com B K Building, 2nd Floor,
Tel: 7798985647 Opposite Canara Bank SME Branch
Jagatpura
E-mail Id: hinjewadi@canfinhomes.com Sarbahal Road, Jharsuguda
CAN FIN HOMES LTD.
Tel: 8074089466
Alwar 1st Floor, Rajawat Tower, Plot No. 200,
E-mail Id: jharsuguda@canfinhomes.com
CAN FIN HOMES LTD. Lajpat Nagar
Plot No. 6, 2nd Floor Near 7 No. Choraha, Maha Road Affordable Housing Loan
Lajpat Nagar Jagatpura, Jaipur Centres (AHLCs)
Alwar - 301001 Tel: 7625013274 Attibele AHLC
Tel: 0144-2704055 E-mail Id: jagatpura@canfinhomes.com CAN FIN HOMES LTD.
E-mail Id: alwar@canfinhomes.com Site no.1, D-1014, 1st Floor,
Bhilai
Haridwar CAN FIN HOMES LTD. Opp. Syndicate Bank,
CAN FIN HOMES LTD. Shop No.255-258, 1st Floor, Attibele Circle, Sarjapur Road, Attibele,
1st Floor, Above Ujjivan Bank, Arya Nagar Above HDFC Bank Bangalore – 562107
Opp. Subharambh Wedding Point Chouhan Estate. G.E.Road, Tel: 080-27844440
Jwalapur Main Road, Supela Bhilai, Bhilai - 490023 E-mail Id: attibele@canfinhomes.com
Haridwar - 249407 Tel: 0788-4902391 Thanisandra AHLC
Tel: 01334 250030 E-mail Id: bhilai@canfinhomes.com CAN FIN HOMES LTD.
E-mail Id: haridwar@canfinhomes.com No. 48,Ground Floor, 5th Main Road
Bhimavaram
Jalandhar CAN FIN HOMES LTD. Central Excise Layout,
CAN FIN HOMES LTD. Flat No. 04, Ground Floor, Door No. 2-1-50, Shivaram Karanth Nagar
SCO-13, 1st Floor, Puda Complex, SVR Towers Thanisandra
(Opp. Tehsil Complex) Ladowali Road J P Road, Bhimavaram - 534202 (attached to HRBR Layout branch),
Jalandhar - 144001 Tel: 08816-297744 Bangalore - 560 077
Tel: 0181-2242900 E-mail Id: bhimavaram@canfinhomes.com Tel: 080-28443415
E-mail Id: jalandhar@canfinhomes.com E-mail Id: thanisandra@canfinhomes.com
Kadapa
Jhansi CAN FIN HOMES LTD. White Field AHLC
CAN FIN HOMES LTD. Sri Vasavee Towers, D No. 42/1454-1, CAN FIN HOMES LTD.
1st Floor, SBI Main Branch Building, 1st Floor No. 3 & 4, 1st Floor, Immadihalli Main Road
Opp. Dhyanchand Stadium Sankarapuram Kadapa - 516002 Vinayaka Layout, Whitefield,
Chitra-BKD Road, Civil Lines Tel: 08562 247589 Bangalore - 560 066
Jhansi - 28400 E-mail Id: kadapa@canfinhomes.com Tel: 080 28454501
Tel: 0510-2332676 E-mail Id: whitefield@canfinhomes.com
E-mail Id: jhansi@canfinhomes.com

215
Can Fin Homes Ltd

Doddaballapura AHLC Tenali AHLC Palwal

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
Shop No. 1, Ground Floor, H.No.9-94/1, Railway Station Road, 1st Floor, Ashirwad Plaza,
Ganeshappa Complex, (Near Canara Bank), Angalakuduru Opp. Nishant Public School Rasolpur Road,
Gowribidanur Road, Tenali, Tenali - 522 211 Palwal-121102
Mallathhalli Post Palanajogihalli, Andhra Pradesh Tel: 01275 240033
Doddaballapur - 561203, Karnataka Tel: 08644 225838 E-mail Id: palwal@canfinhomes.com
Tel: 080 27622134 E-mail Id: tenali@canfinhomes.com
Shoranur AHLC
E-mail Id: doddaballapur@canfinhomes.com
Thirumangalam AHLC CAN FIN HOMES LTD.
Ramnagaram AHLC CAN FIN HOMES LTD. Malutty Shopping Corner, Post Office Road,
CAN FIN HOMES LTD. D.No.46/1, HDFC Bank Building, Shoranur-679121
Sadvi Complex, # 3 1106/624/1, 1st Floor, Opp. MEPCO Schlenk Primary Palakkad
Vivekananda Nagar School,Madurai Main Road, Thirumangalam Tel: 0466 2224440
B. M. Road (Attached to BLR- Bidadi), – 625706 Madurai District E-mail Id: shoranur@canfinhomes.com
Ramanagara - 562159 0097, Karnataka Tel: 04549-282499
Manesar AHLC
Tel: 9739316557 E-mail Id: thirumangalam@canfinhomes.com
CAN FIN HOMES LTD.
E-mail Id: ramanagaram@canfinhomes.com
Gobichettypalayam AHLC 1st Floor, Shop No. F - 14
Dharwad AHLC CAN FIN HOMES LTD. Raheja Square,
CAN FIN HOMES LTD. Block-C Room No 23A/3, 1st Floor, Manesar - 122051, Haryana
1, 1st Floor, Diamond Corner Complex, Santhan Kanthan Tel: 0124-2290152
Near Maruti Temple, Complex, Opp TNSTC Depot, Erode Road, E-mail Id: manesar@canfinhomes.com
Dharwad, Dharwad - 580001 Gobichettypalayam-638476
Rewari AHLC
Line Bazar, Hubballi Tel: 04285-222446
CAN FIN HOMES LTD.
Tel: 0836 - 2443507 E-mail Id: Gobichettypalayam@canfinhomes.com
SCO – 119, 1st Floor, Brass Market
E-mail Id: dharwad@canfinhomes.com
Batlagundu AHLC Rewari , Rewari - 123401
A S Rao Nagar AHLC CAN FIN HOMES LTD. Haryana
CAN FIN HOMES LTD. (Dindigul Main Branch) Tel: 01274 - 223015
1st Floor, D.No.1-8-4/2, North Kamalanagar # 5 - 1, Anu Towers, 1st Floor, E-mail Id: rewari@canfinhomes.com
Hyderabad – 500 062 Madurai Main Road, Opp. SBI
Pithampur AHLC
Tel: 040-27148161 Near Kaliamman Temple,
CAN FIN HOMES LTD.
E-mail Id: asraonagar@canfinhomes.com Batlagundu - 624202,Tamil Nadu
G-1, 1st Floor, Jeevan Complex,
Tel: 04543 245057
Sangareddy AHLC Mhow-Neemuch Road
E-mail Id: batlagundu@canfinhomes.com
CAN FIN HOMES LTD. Pithampur, Madhya Pradesh - 454774
Shop No. 6, House No. MIG – 31, Phase II, Mandideep AHLC Tel: 01292-298273
Gram panchayat No. 2 – 66, CAN FIN HOMES LTD. E-mail Id: pithampur@canfinhomes.com
Pothireddypally Village, B-202, 1st Floor, Indra Nagar, Mandideep,
Neyyatinkara AHLC
Sangareddy Mandal, Medak - 502001, Bhopal – 462046
CAN FIN HOMES LTD.
Andhra Pradesh Tel: 07480-233922
# XII / 504 - E, 1st Floor, Asif Centre,
Tel: 08455 277550 E-mail Id: mandideep@canfinhomes.com
Alummoodu
E-mail Id: sangareddy@canfinhomes.com
Mandideep AHLC Neyyattinkara
Ghatkesar AHLC CAN FIN HOMES LTD. Trivandrum - 695121
CAN FIN HOMES LTD. B-202, 1st Floor, Indra Nagar, Mandideep, Tel: 0471 220117
Shop No 1 and 2 H No 5 122, 1st Floor, Bhopal – 462046
Canara Nagar Tel: 07480-233922
Satelllite Offices (SOs)
Yeshwanthpur SO
Peerzadiguda, Opp: Anutex, Medipalli, E-mail Id: mandideep@canfinhomes.com
CAN FIN HOMES LTD.
Mandal,
Jhothwara AHLC (Cunningham Road Main Branch)
Medchal-Malkajgiri Dist,
CAN FIN HOMES LTD. S No.7, No.580, Grnd Floor,
Telangana-500039.
(Mansarovar Main Branch) Ramachandra Complex,
Tel: 040-29709230
S-61 & 62, Laxman Rekha Scheme No-17, 9th Cross, 1st Main, Yeshwanthpur,
E-mail Id: ghatkesar@canfinhomes.com
Nangal Jaisa Bohra, Jhotwara, Jaipur-302012 Bangalore -560022
Tel: 0141 2345578 Tel: 080-23370023
E-mail Id: jhotwara@canfinhomes.com E-mail Id: yeshwanthpur@canfinhomes.com

216
 List of Branches | Annual Report 2018-19

Cox Town SO Thiruverambur SO Patia SO

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
(Cunningham Main Branch) (Trichy Main Branch) (Bhubanswar Main Branch)
# 47, Ground Floor, Wheeler Road No.9 & 10, Riyaz Complex, 1st Floor, Plot No.HIG-191, L-1153/97,
Cox Town, Bangalore - 560005 Erumbeeswarar Nagar, P S Chandrashekarpur, Kanan Vihar
Karnataka Trichy - 620013 Patia, Bhubaneswar - 751 024 Odisha
Tel: 080 25466622 Tel: 0431 2511100 Tel: 8143166539
E-mail Id: coxtown@canfinhomes.com E-mail Id: thiruvembur@canfinhomes.com E-mail Id: patia@canfinhomes.com

Vidyaranyapura SO Velur SO Kazhakuttom SO

CAN FIN HOMES LTD. CAN FIN HOMES LTD. CAN FIN HOMES LTD.
(Sahakarnagar Main Branch) (Karur Main Branch) (Trivandrum Main branch)
101, Ground Floor, II Main, III Cross, No.13(1), 1st Floor, No.2, Ground Floor, SS Complex,
AMS Layout Old Byepass Road, Paramithi, Near Police Station
Vidyaranyapura Velur – 638182 Kazhakuttom,
(Attached to BLR-Sahakarnagar), Tel: 04268-222068 Trivandrum – 695001
Bangalore - 560097, Karnataka E-mail Id: velur@canfinhomes.com Tel: 0471 – 2415446
Tel: 080-23649967 E-mail Id: kazhakuttom@canfinhomes.com
Cuddalore SO
E-mail Id: vidyaranyapura@canfinhomes.com
CAN FIN HOMES LTD. Aluva SO
Vijayanagar SO-Mysore (Pondicherry Main Branch) CAN FIN HOMES LTD.
CAN FIN HOMES LTD. # 106, 1st Floor, Nethaji Road (Cochin Main Branch)
(Mysore Main Branch) Manjakuppam, D.No.352/2, 1st Floor,
#4999, 1st Floor, Vijayanagara 2nd Phase, Cuddalore - 607001,Tamil Nadu Alookaran Complex,
4th Stage Devaraja Mohalla, Tel: 04142 232323 Market Road, Aluva – 683101,
Mysuru-570017 E-mail Id: cuddalore@canfinhomes.com Tel: 0484 2632826
Tel: 8884341284 E-mail Id: aluva@canfinhomes.com
Kangeyam SO
E-mail Id: Vijayanagar_mysuru@canfinhomes.com
CAN FIN HOMES LTD.
Rajarajeshwari Nagar SO (Tirupur Main Branch)
CAN FIN HOMES LTD. # 5G, 1st Floor, Rajaji Street,
(Vijayanagar Main Branch) Above Indian Bank
Shop No 9, Site No 20, CMC Khata No 26, Kangeyam, Tirupur, Tamil Nadu
Ideal Homes Township, R R Nagar, Tel: 04257-221414
Bengaluru-560098 E-mail Id: kangeyam@canfinhomes.com
Tel: 080 28606080
Oddanchatram SO
E-mail Id: rajarajeswarinagar@canfinhomes.com
CAN FIN HOMES LTD.
Peelamedu SO (Dindigul Main Branch)
CAN FIN HOMES LTD. # 276/1 - 9, Sri Sri Sakthi Complex,
(Coimbatore-Gandhipuram Main Branch) 1st Floor, Opp: Bus Stand
No.88, ‘D’, 1st Floor, E S Corner, Oddanchatram - 624619
Avinashi Road, Tamil Nadu
Hope College, Coimbatore 641004 Tel: 04553 244196
Tel: 0422 – 2591563 E-mail Id: oddanchatram@canfinhomes.com
E-mail Id: peelameedu@canfinhomes.com

217
Notes
Notes
Notes
Disclaimer
In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take investment decisions. This report
and other statements - written and oral – that we periodically make, contain forward-looking statements that set out anticipated results based on the management’s
plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’,
‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be
realised, although we believe we have been prudent in assumptions. The achievements of results are subject to risks, uncertainties and even inaccurate assumptions.
Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those
anticipated, estimated, or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
 a K&A creation | www.kalolwala.co.in

Registered Office
No. 29/1, 1st Floor, M N Krishna Rao Road,
Near Lalbagh West Gate, Basavanagudi,
Bengaluru 560004