Empowering Contents Unparalleled reach

across India’s length

44
FY2023 key highlights

Emerging India About the report 02

and breath Financial
Value created for stakeholders 04
₹ 49,541 crores
Progressing on our 06 Highest ever annual disbursement
transformational journey 80% y-o-y
As a business, we have a strong position Who we are 08
to partner with and empower emerging Product portfolio 10
₹ 82,770 crores
India. We take great pride in serving our Presence 12
Gross Loan Book
27.4% y-o-y
customers, who are our main ambassadors
and promoters. Our prudent provisioning, ₹ 1,984 crores
Being a Governance 46
excellent credit rating, and longstanding
relationships with stakeholders are a
responsible NBFC 14 Board of Directors 52
Profit After Tax
101% y-o-y
Steering Committee and CS 60
testimony to how we have created and 2.3%
protected value over the years. We have Return on Assets (RoA)
In step with
transformed in the past decade from
primarily being a financing entity for
digital India 62 7.6%
Stable Net Interest Margins (NIMs)
vehicle purchases to becoming a leading
multi-product non-banking financial company Non-financial
(NBFC) in India with deep penetration and a Long-term debt rating upgraded to AAA by CRISIL
strong network that focuses on rural and Key performance indicators 16
semi-urban areas pan-country. 9 million+
Chairman’s message 18
cumulative customer contracts
Vice Chairman & MD’s message 20
At the core of our #TogetherWeRise ethos, ‘B’
Digitalisation 22
we are committed to driving positive Investors 64 Carbon Disclosure Project (CDP) rating level improved
change in the lives of our stakeholders, as Customers 68
we believe our success is directly linked to Supporting People 72
2.57 lakhs
customers in all lives impacted through CSR initiatives
creating shared value for all.
their needs 26 Community
Suppliers and vendors
80
86 79%
Environment 88 employees volunteered for CSR activities

Awards 93
Annexures 94
Asset quality
● Sustained improvement in asset quality across
You can view the Statutory Reports Stage 2 and Stage 3
Integrated Report by
accessing the QR Code Board’s Report 104
● Robust coverage @ 59.5% on Gross Stage 3 assets
as under:
Management Discussion 152
● FY2023 collection efficiency at healthy 96%
and Analysis
Strategic priorities 28
Report on Corporate Governance 170
Business model 30
 usiness Responsibility &
B 214 Capital management
Operating context 32 Sustainability Reporting
Stakeholder engagement 34 22.5%
Materiality 36
Financial Statements Capital adequacy ratio
Standalone Financial Statements 254
About the cover:
Iconography supporting
Sustainability strategy 40
Consolidated Financial Statements 404
300%
the business segments of Dividend
Mahindra Finance Form AOC - I 512
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About the report

Report Materiality
This FY2023 Integrated Report provides
Report alignment
This report aligns with the principles and
Sustainability/ESG indices
participated in

profile
a thorough overview of all that is material guidelines applicable to the Company, including
to our business. Considering the essential Recognised by industry-leading rating and ranking
but not restricted to:
aspects of interest of our stakeholders, agencies, our diligent efforts in the course of
it dives into the Company’s performance, ● Global Reporting Initiative (GRI): sustainable development form the backbone of
prospects, and ability to create sustainable in accordance with the core option all our operations.
and shared value. All information included in
● CDP – Improved CDP rating level to B. Placed
Our FY2023 Integrated Annual this report is firmly rooted in the economic, ● International <IR> framework of the
under the management category for taking
social, and environmental context of International Integrated Reporting Council
Report follows the internationally our operations. (IIRC) (now known as Value Reporting steps towards managing its carbon emissions
recognised framework of Foundation) ● UN Global Impact – First NBFC in India to join
Our capitals the United Nations Global Impact Network
Integrated Reporting <IR> to offer ● United Nations Sustainable Development
To be a future-ready organisation that Goals (UNSDGs) ● FTSE4Good – Included in FTSE4Good
a comprehensive insight into the creates long-term value in the field of digital Emerging Markets Index for the 4th
functioning of Mahindra & Mahindra transformation, we are highly dependent ● United Nations Global Compact Principles consecutive time
on different kinds of capital. The various (UNGC)
Financial Services Limited (MMFSL or forms of capital available to us (inputs),
Mahindra Finance). It covers all the their efficient utilisation (value-accretive
● NGRBC- National Guidelines on Responsible Board’s support for value
Business Conduct
key aspects of functioning that lead activities), our impact on them, and the creation
value we deliver (outputs and outcomes) are ● The Companies Act, 2013 (and the rules
to value creation for all stakeholders, all deeply interconnected. made thereunder) To our shareholders and
including our performance, ● Indian Accounting Standards and International
other stakeholders
governance, material risks and Financial Reporting Standards We are pleased to present our FY2023
Integrated Annual Report to our shareholders
opportunities, strategy, and prospects. ● Securities and Exchange Board of India (Listing and other stakeholders. This report provides
Obligations and Disclosure Requirements) relevant information about performance,
Financial Capital Human Capital
Regulations, 2015 operating context, governance, material risks and
opportunities, strategy, and future prospects of
Scope of reporting ● Secretarial Standards issued by the Institute Mahindra Finance.
of Company Secretaries of India
Reporting period As the Board, we acknowledge our responsibility
Compiled, produced, and published at the end of ● Directions and circulars issued by the Reserve to ensure the integrity of this Integrated Annual
every financial year, the report provides material Bank of India Report. We have, accordingly, applied our
information relating to the Company’s strategy collective mind and believe the report addresses
and business model, operating context, material Manufactured Capital Social and all material issues and presents the integrated
risks, stakeholder interests, performance, Relationship Capital performance of the Company and its impact in a
prospects, and governance. This report covers fair and accurate manner.
all information pertaining to the period between
1 st April 2022 to 31 st March 2023.
Assurance
Reporting boundary We ensure the accuracy and reliability of the
information presented in this Report through a
The Report covers the entire operations of
Intellectual Capital Natural Capital rigorous assurance process. This process involves
Mahindra Finance, including an overview of
both our internal experts and an independent
its subsidiary companies. Throughout the
third-party assurance provider, Bureau Veritas.
reporting year, the coverage was extended to Targeted readers You can find our Assurance Statement on page
include all 1,386 offices of MMFSL, ensuring
This report intends to address all the crucial 94 for more details.
100% coverage.
information required by our long-term
investors (our equity shareholders and
Financial and non-financial reporting prospective investors). Our value creation
The report extends beyond financial reporting and strategy for other key stakeholders,
includes non-financial performance, opportunities, including our employees, partners and
risks, and outcomes attributable to or associated suppliers, customers, regulators, and
with our key stakeholders, which have a society, is adequately reflected in this
significant influence on our ability to create value. Integrated Report.

2 Empowering Emerging India INTEGRATED REPORT 2022-23 3

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Value created for stakeholders

Performance
aligned with People Environment Communities

purpose We value our employees by providing a safe,

inclusive, and nurturing workplace. We invest
in their training, education, and well-being,
fostering personal and professional growth.
At Mahindra Finance, all our activities are
backed by a strong sense of responsibility
towards the environment.
We engage with communities through
proactive CSR initiatives focused on
education & livelihood, health, environment
and community development.

16% 3.8 GJ
per employee Energy intensity
2.57
CSR beneficiaries
lakhs
Increase in women representation through
targeted recruitment

10,971
New employees recruited
59.5
E-waste recycled
tonnes ₹ 37.22 crores
CSR expenditure

Every decision we take, and every

3,53,000+ 18,200+ 2,94,000+
Training hours of employees Electric vehicles financed Trees planted
functional model we adopt is geared
towards creating long-term positive Read more on page 72 Read more on page 88 Read more on page 80

impact. We consistently strive to create

collective value for a broad range of
stakeholders sustainably and inclusively.

Investors Suppliers and vendors Customers

We prioritise transparency, strong relationships, and diverse interest protection for investors. Mahindra Finance collaborates to ensure Our approach revolves around putting
compliance with their sustainability customers first, offering tailored services

80% 1,984
standards and encourage the adoption of and products that enhance convenience and

₹ crores
sustainable practices. leverage the latest technologies.

y-o-y growth in disbursement Profit after tax

7.6% 12.1% 6.34% 1 million+

Net Interest Margin (NIMs) ROE Purchase proportion of MSME suppliers Customer app downloads

1.87% 22.5% ₹ 14,844

Purchase from MSME suppliers
lakhs
Net stage 3 ratio Capital adequacy ratio
Read more on page 64 Read more on page 86 Read more on page 68

Note: All figures are for FY2023 unless otherwise stated.

4 Empowering Emerging India INTEGRATED REPORT 2022-23 5

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Progressing on our transformational journey

In pursuit of Our new vision

sustained “To be a leading and responsible Mission 2025 FY2023
performance
Delivering value by
fulfiling our vision
profitable
financial solutions partner of
choice for Emerging India”
Stable asset quality • Increasing returns

growth Factoring in expectations of our

<6% 4.5% • Maintaining strong
balance sheet to
GS-3
stakeholders protect against
Growth downside risk

Customers Employees
2X
AUM
27% • Investing in and
growing our
customer reach and
people sustainably
Diversification

15% ~6%
• Following good
Communities Regulators ESG practices that
To achieve sustainable and profitable New business contribution
ensure a sustainable
growth, we introduced Mission business for the
2025. As part of our plan, we set long-term
Maintain margins
specific goals for Key Performance Suppliers Investors

7.5% 7.6%
• Providing credit in a
Indicators (KPIs), including growth in
responsible manner
Assets Under Management (AUM),
NIMs that enables wealth
asset quality, Net Interest Margin
creation, sustainable
(NIM), cost ratios, and Return on Dealers and OEMs Lenders
Operating leverage development and job
Assets (RoA).

2.5% 3.2%
creation

We have translated these targets into strategic

priorities, with a focus on execution. From Four strategic priorities Cost to assets
expanding our presence in underpenetrated and
untapped geographies, leveraging technology
to drive operational efficiency and customer Stabilise asset quality
engagement, and developing new products and
Financial performance
services to building a strong team, we have Recharge growth

2.5% 2.3%
significant progress and remained on track to
achieve our targets.
Strengthen tech and digital
RoA
Future ready human capital

6 Empowering Emerging India INTEGRATED REPORT 2022-23 7

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Who we are

Partnering We are primarily in the business of financing

the purchase of new and pre-owned auto

with
and utility vehicles, tractors, passenger cars,
commercial vehicles, construction equipment,
and SME financing. We benefit from our close Vision Leading and responsible Brand pillars
relationships with dealers and our longstanding

Emerging
ties with Original Equipment Manufacturers financial solutions partner of Rise for a more equal world
(OEMs), which allow us to provide on-site financing choice for Emerging India ● Climate change
at dealerships.

India
● Inclusion
Our international offerings include wholesale
inventory financing to dealers and retail financing ● Ethics
to customers in the United States (US) for the
purchase of Mahindra Group products through
Mahindra Finance USA LLC, our joint venture with Purpose Drive positive change in the
a subsidiary of the Rabobank Group.
lives of our communities. Only Rise to be future-ready
About Mahindra Group when we enable other to rise ● Customer focused
The Mahindra Group is a federation of Companies will we rise. #Togetherwerise ● Technology
bound by one purpose: to Rise. For over
seven decades, the Group has made many ● Innovation
Throughout our journey, we have transformational changes but remains grounded
consistently expanded our range in its core purpose of challenging conventional
Core • Professionalism
thinking and innovatively using resources to drive
of products and services to the a positive impact in the lives of its stakeholders values Rise to create value
rural and semi-urban (RUSU) and communities globally and enable them • Good Corporate Citizenship
to Rise. ● Entrepreneurship
areas, broadened our reach, and • Customer First
Headquartered in Mumbai, the Group employs ● Scale
strengthened our commitment to 2,60,000 people across 100+ countries. It • Quality Focus ● Impact
the values that initiated our path, operates in key industries that propel economic
driving our growth with unwavering growth, such as tractors, utility vehicles, • Dignity of the Individual
information technology, financial services, and
determination. vacation ownership. The Group has a strong
presence in agribusiness, aerospace, components,
As one of India’s leading NBFCs, Mahindra Finance consulting services, defence, energy, industrial
is offering quality products and services to a equipment, logistics, real estate, retail, steel, Mahindra Finance architecture
wide customer base in India’s semi-urban and commercial vehicles, and two-wheelers.
rural areas.
Mahindra & Mahindra Limited
52.16%
Mahindra & Mahindra Financial Services Limited

Key facts Mahindra Mahindra Mahindra Mahindra Mahindra Mahindra Mahindra

Insurance Rural Finance USA Manulife Manulife Ideal Finance CSR
Brokers Housing LLC (Joint Investment Trustee Finance Foundation
₹ 82,770 crores Limited Finance
Limited
venture with
Rabobank
Management
Private
Private
Limited
Limited
(MIFL),
Gross Loan Book Group Limited (MMTPL) Sri Lanka
Subsidiary) (MMIMPL)

9 million+ 80%1 98.43%2 49% 51%3 51%3 58.2% 100%

Cumulative customer contracts
Note:
1. Balance 20% with Inclusion Resources Pvt. Ltd. (IRPL), subsidiary of AXA XL Group

1,386 2. Balance 1.57% with MRHFL Employee Welfare Trust and employees
3. Manulife Investment Management (Singapore) Pte. Ltd. holds 49% of the shareholding of MMIMPL and MMTPL
Network/Pan-India offices

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Product portfolio

Cluster Areas of strength and differentiation KPIs

Delivering on ● Diverse vehicle financing: Auto, utility, tractors, commercial

8,79,000+
customer aspirations
vehicles, and construction equipment.
New contracts financed
● Broad customer base: Transport operators, farmers,
Vehicle businesses, self-employed, and salaried individuals.
and tractor ● Pre-owned vehicle financing: Meeting demand and potential 24%
financing in the used-vehicle market. Increase in book size

At Mahindra Finance, we prioritise understanding our

customers on a deep level. By carefully analysing their needs ● End-to-end seamless digital journey using automated
100%
and preferences, we continuously evolve our offerings to Business Rule Engine (BRE).
Digital underwriting
● Innovative product suite to facilitate customer's livelihood
provide tailored solutions. Our goal is not only to stimulate and consumption needs.
Consumer and
economic activity and growth in the areas we operate but also personal loans ~1.2 lakh
to empower our customers with renewed opportunities for a Customers onboarded
during the year
better future.

● Diverse loan offerings: Project finance, equipment finance,

working capital finance, and more for SMEs.
₹ 4,400 crores
AUM of MSME
● Targeted sectors: Auto ancillary, engineering, and food/agri-
SME financing processing industries for specialised support.
● Mahindra Group advantage: Credibility, expertise, and
resources as a trusted financial partner.

● Fulfil customer needs: Understand customer’s insurance

requirements, risk profile and provide simple, transparent and
₹ 4,037 crores
affordable Life, Health and Asset protection solutions. Gross premium

Insurance ● Provide End-to-end insurance advisory: Build trusted

broking relationship with customers by providing end-to-end support 2.9 million
across policy purchase, servicing & claims settlement. Insurance contracts

● Extensive housing finance: MRHFL offers a wide range of ₹ 2,005 crores

housing loans for purchase, construction, extension, and
Loan disbursements
renovation.

Housing finance 59,717

● Focus on rural and semi-urban India: MRHFL specialises in
providing loans specifically tailored to the unique needs of
individuals in rural and semi-urban areas. New customer contracts
● Comprehensive property solutions: MRHFL provides
financing options for buying, renovating, extending, and
improving homes in these regions.

● Secured transition: Moving from simple savings instruments ₹ 9,503 crores

to mutual-fund investments. Assets under
● Our belief is in growing together, that’s why we focus on management as on
Asset delivering long-term results through active management 31st March 2023
management with diverse investment options: 20 schemes across Equity,
& mutual fund
distribution
Tax Saver, Liquid, Debt, and Monthly Income Funds.
21%
● End-to-end solutions: Distribution team provides
Increase in distributors
comprehensive investment solutions for rural and
semi-urban India.

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Presence

Expanding We strive to reach every corner of

the nation, bridging the gap and
State/Union Territory
MMFSL
Customers serviced in FY2023
MRHFL MIBL

our footprint
1. Andaman and Nicobar Island 1,497 - 816
empowering rural and semi-urban 2. Andhra Pradesh 59,249 74,181 60,673
India. With an expanding branch 3. Arunachal Pradesh 4,493 - -
network, we bring accessible financial 4. Assam 1,06,316 - 91,033
solutions to diverse communities, 5. Bihar 1,34,320 9,781 1,30,813

leaving no stone unturned. Our 6. Chandigarh 3,181 26 30,124

7. Chhattisgarh 80,614 5,958 58,150
commitment is to make a meaningful
8. Dadra and Nagar Haveli 1,665 - -
18
impact on lives across the lengths and 9. Delhi 25,784 - 71,352
14 breadths of our country. 10. Goa - - 32

13
11. Gujarat 1,39,562 47,375 1,43,937
12. Haryana 75,012 - 77,606
26
13. Himachal Pradesh 32,797 - 17,099
6
33 14. Jammu and Kashmir 26,617 - 21,246
12
15. Jharkhand 50,938 - 49,435
9
3
16. Karnataka 91,133 1,439 1,21,230

32
28 17. Kerala 92,585 20,905 92,391
18. Ladakh 698 - -
27 4
5 19. Madhya Pradesh 1,94,346 36,985 1,62,991
22
20. Maharashtra 2,36,400 1,91,698 9,50,785
21 21. Manipur 2,820 - 2,106
15
34 31 22. Meghalaya 12,893 - 5,459
11 19 23 23. Mizoram 10,596 - 5,213

7 24. Odisha 67,669 533 64,173

24
25. Puducherry 2,107 - 13,879
8 26. Punjab 41,491 29 42,352
20
27. Rajasthan 1,40,281 24,145 1,49,621
28. Sikkim 6,739 - 3,684
30
29. Tamil Nadu 75,148 1,17,906 93,956
30. Telangana 75,363 31,830 53,844
10
2
31. Tripura 15,507 - 5,967
16
32. Uttar Pradesh 2,83,065 7,600 2,74,794
33. Uttarakhand 55,864 192 33,430
34. West Bengal 1,15,423 - 82,763
25 1 Grand Total 22,62,173 5,70,583 29,10,954
29
17
Number indicates the name of state
mentioned in corresponding table
Smart branches Physical assets
By establishing branches across the country and To enhance the service experience for our customers In addition to our branches and physical
employing individuals from local communities, and forge stronger relationships with our dealers, infrastructure, we possess essential IT assets such
1,386 527 we have effectively served customers with
varying financial needs. We achieve this by
we have expanded our network by establishing 527
smart branches located within our dealer partners'
as computers, laptops, and printers that empower
our staff to carry out their tasks efficiently. Moreover,
Branches Smart branches recognising and comprehending the desires and premises. These branches are designed with minimal we have installed diesel generator (DG) sets at
goals of individuals. infrastructure and a smaller staff size compared to specific locations to serve as backup power sources.
our regular branches, specifically catering to the
needs of a particular dealer partner.

Note: Map not to scale

12 Empowering Emerging India INTEGRATED REPORT 2022-23 13

Being a
responsible
NBFC
Ensuring healthy asset quality and surplus liquidity across all
buckets remain among our key priorities.

With our robust risk management framework, we have consistently

maintained improved asset quality during the year. We set up
Collection War Room to build on our strength in on-ground
collections and construct our collection analytics influence.

This proactive approach enables us to swiftly correct potential

GNPAs, thereby mitigating risk and maintaining a healthy
asset-quality portfolio. By utilising cutting-edge collection analytics,
we effectively manage and streamline our collection processes,
allowing us to identify and address potential issues with precision
and timeliness.
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Key performance indicators

Sustaining stable and Return on assets (ROA) Return on net worth (RONW)

profitable growth
(%) (%)

2.6 15.2
2.3
12.1

Driven by unwavering determination and dedicated efforts,

we successfully overcome challenges while maintaining a robust 1.3 1.3
8.1
6.5
capital adequacy ratio. Rural demand and improved cash flows
combined with the removal of supply-side bottlenecks in the
0.4 2.5
industry helped us deliver healthy disbursement growth. With a
strong heritage, a solid parent Company, and an excellent liability
franchise, we are well-positioned to meet our goals and aspirations. FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023

Financial metrics

Total income Profit after tax Net worth Breakdown of asset book
(₹ in crores) (₹ in crores) (₹ in crores) (%)

11,056 1,984 17,089

10,245 10,517 14,712 15,628
9,719
11,364 33% Auto/utility vehicles
8,810 1,557 10,908
14% Tractors

20% Cars
989
906
11% Commercial vehicles

12% Pre-owned vehicles

335 10% SME and others*

FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 (as on 31 st March 2023)
* others include trade advances, personal and consumer loans,
finance lease receivables

Social metrics

Earnings per share (Basic) Total assets Number of lives impacted CSR spend
(₹) (₹ in crores) (₹ in crores)

96,217 37.51* 37.22

25.33
3,61,943
32.54
74,071 77,036 75,289
67,078 26.87
2,56,507
16.09
22.80
1,88,703 *includes
10.09 ₹ 7.86 crores
8.02 1,00,190 transferred to
unspent CSR
account towards
3.03 51,763 Company's
ongoing project,
which was spent
in FY2023

FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023

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Chairman’s message

Dear Stakeholders, we have strengthened our leadership team and

brought in new talent to lead our technology
The year under review witnessed constant and risk divisions. This strategic approach
changes in the global geo-economic environment.
The worldwide economy encountered numerous
allows us to stay at the forefront of addressing Our vision in its new avatar goes
our clients' evolving needs and embracing
challenges, including increasing geopolitical technological advancements.
beyond that, aiming to position
tensions, stagnating growth, and turbulent us as “A leading and responsible
financial markets. Despite the unwinding of We have maintained a steadfast commitment to financial solutions partner of choice
supply chain disruptions, the year continued to asset quality, supported by a robust collection
be impacted by the Ukraine war. The above led performance. We have maintained a steadfast
for Emerging India”. This new vision
to inflation remaining persistent at higher levels commitment to asset quality, supported by a encompasses our commitment
contributing to rising prices of food, commodities robust collection performance. Additionally, to service our customers in
and energy. we made efforts to strengthen our balance emerging India in a responsible
sheet and enhanced our risk management
Against this backdrop, however, India showcased framework and compliance culture, ensuring
manner and simultaneously achieve
remarkable resilience in the face of global a solid foundation for our operations. Looking profitable growth.
uncertainties, setting itself apart from numerous ahead, we will capitalise on the power of digital
advanced economies. The country maintained technology and data intelligence to drive
strong performance in 2022 across all sectors, scalability, and cost efficiency, and improve the
primarily due to robust domestic demand and a Under succession planning and to ensure a
overall customer experience across our various
supportive policy environment. seamless transition, the Board has appointed
business lines.
Mr. Raul Rebello as the Executive Director and
During the year under review, our business was We have made steady progress on our MD & CEO – designate effective 1 st May 2023.
aided by these favourable macro tailwinds. Having Environmental, Social, and Governance (ESG) He is a young leader. Throughout his career, he
said that, the thrust of the leadership on investing journey, establishing a strong foundation that has demonstrated an impressive track record
in newer capabilities and advanced technological prioritises protection and progression for of accelerating growth in large businesses and
solutions accelerated during the year. These are our entire ecosystem. This approach ensures incubating ideas for the future. He understands
bearing fruits for us. We are happy to report long-term benefits for all stakeholders rural and is aligned with the Company’s vision.
another outstanding year, characterised by involved. Our commitment to social initiatives is He would eventually take over from Mr. Ramesh
strong financial performance and the consistent reflected in our strong rural links in unserved Iyer, who has built such a formidable franchise
achievement of important scorecard objectives. and underserved communities as our products over the years, as he superannuates in April 2024.

Empowering
and services help customers attain financial I am confident that Raul will further build and
Over more than 30 years, your Company has strengthen the moats and take your Company to
independence and create sustainable livelihoods.
established a robust ecosystem for financing in greater heights in the coming years.
semi-urban and rural areas. This achievement

Emerging
We believe that the stage is now set for us to
has been made possible by our ability to identify broaden our vision, which appropriately reflects We thank our customers for their faith and
emerging trends ahead of time, gain deep local our evolving goals and aspirations. Our previous confidence in your Company to deliver their
insights, make relevant investments, and steadily emphasis was on being the foremost financial requirements and needs. We owe a debt of

India
expand our presence nationwide. Notably, during services provider in rural and semi-urban areas, gratitude to all the employees for helping build
the year, our long-term rating was upgraded which formed the backbone of our business, as is the Company and its businesses. We thank all
by CRISIL to "CRISIL AAA/Stable," affirming our currently as well. However, our vision in its new other stakeholders including all the Members
continuous efforts to enhance asset quality and avatar goes beyond that, aiming to position us for their continued support. I envision greater
maintain a stable resource profile. as “A leading and responsible financial solutions achievements for the Company in the years
partner of choice for Emerging India”. This new to come and look forward to a successful
Throughout the year, we have remained year ahead.
vision encompasses our commitment to service
committed to fostering a culture of excellence
our customers in emerging India in a responsible
that is centred around our clients, embraces
manner and simultaneously achieve profitable
diversity, and promotes inclusivity. We aim to
growth. It further establishes our commitment Regards,
consistently deliver high performance and
to be a provider of comprehensive financial
exceed expectations. We recognise that our
solutions, beyond lending. The phrase "partner Dr. Anish Shah
workforce is a vital asset that drives our success
of choice" holds significance as it reflects our Chairman
and productivity, and we value the diverse
dedication to prioritising digital initiatives,
backgrounds, perspectives, and networks of our
enhancing customer experience, and expanding
employees, which set us apart. During this period,
our range of products.

18 Empowering Emerging India INTEGRATED REPORT 2022-23 19

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Vice-Chairman & MD’s message

Dear Stakeholders,
Investing in people and
As we finally seemed to emerge from the communities
shadows of COVID-19 last year, we started to
navigate our way through a post-pandemic world
We are implementing Udaan, a The collective capabilities of our talented
marred by the war in Ukraine, hyper-inflation, comprehensive transformation workforce have been instrumental in driving our
supply chain disruptions, tight labour markets, an initiative supported by technology success thus far, and we remain committed to
further investing in their development. Our strong
ever-deepening climate change crisis. Despite the and digital expertise, to revolutionise local presence and connection, facilitated by
challenging environment, we continued to deliver
strong operating and financial performance, and
our current business practices. our dedicated employees, have played a crucial
I am enormously proud of our achievements. role in fostering customer relationships. Our
Our strengths of long-lasting relationships, employee training programmes help cultivate a
mindset that aligns with crucial values such as
deep penetration, pan-India presence and Delivering on our Mission 2025 customer-centricity, professionalism, and a strong
multi-product approach enabled us to maintain
a robust performance despite the headwinds of We demonstrated our strong execution capabilities focus on quality. It acts as a catalyst for both
intensified competition in an increasing interest by consistently delivering focused outcomes across individual and organisational growth, reinforcing
rate environment. all our business verticals. We are well on track to our values and fostering a culture of continuous
achieve our targets outlined in our Mission 2025. improvement and excellence.
To ensure progress towards these targets, we
Our performance have implemented several strategic initiatives and We are implementing Udaan, a comprehensive
We achieved remarkable growth in both the established specific goals. These include the use transformation initiative supported by technology
vehicle segment and our emerging SME business, of data and analytics in the underwriting process, and digital expertise, to revolutionise our current
leading to our highest-ever annual disbursements improved review mechanisms aided by automated business practices. Through Udaan, we aspire
of ₹ 49,451 crores, marking an impressive 80% dashboards, strengthening the collection engine with to enhance the overall experience for both our
increase over the previous year. Our total income the help of decision support data-enabled processes employees and customers by rethinking our
also saw substantial growth of 14%, reaching and legal toolkits, etc. We are progressing well in processes and journey. We are currently in the
₹ 11,056 crores compared to ₹ 9,719 crores in our objective to expand the share of the non-vehicle process of designing and implementing various
the previous year. Notably, our profit after tax portfolio by nurturing the business of SME lending. programmes aimed at improving the lending
reached ₹ 1,984 crores, reflecting a significant Additionally, within the vehicle segment, our products journey, encompassing aspects such as sourcing,
growth of 101% compared to ₹ 989 crores in are now appealing to mass-affluent customers from cross-selling, underwriting, loan processing, and
the previous year. The Board has recommended a rural, semi-urban and urban areas. collections. This transformation will ultimately

A growth
dividend of 300% of face value, i.e. ₹ 6/- per share result in improved stakeholder experience,
faster turnaround times, and increased digital
on equity shares of face value of ₹ 2/- each. Digital and data analytics proficiency through cutting-edge services.

mindset
Additionally, we were able to deliver consistent Digital innovation and technology enhancements
improvement in asset quality, with our Gross play a crucial role in realising our vision of creating Our CSR initiatives are aligned with the mission
Stage-3 reducing to 4.5% in comparison to sustainable value for all stakeholders. We launched of transforming lives and driving positive change
7.7% at the end of the previous year. The a specialised end-to-end digital journey named in the communities around us. We have identified
robust performance scorecard we achieved is ‘Used Car Digi Loans’ through which customers will Health, Education & Livelihood and Environment
a result of our continuous thrust on process get customised loan offers from Mahindra Finance, as key CSR thrust areas. In alignment with
excellence, digitalisation, sharp eye on innovation enabling them to take faster buying decisions. Mahindra Group’s ‘Rise for Good’ philosophy,
to build sustainable competitive advantage We also expanded ML/AI penetration through through our unique business model, we are
and a 360-degree focus on enhancing business intelligence dashboards and insights which making a difference in the lives of many and
customer experience. have aided in rolling out business and strategic thereby addressing the demands of people in the
business initiatives. country. During the year, we could meaningfully
Improved rural cash flows during the year touch the lives of over 2,50,000 individuals by
supported demand sentiments. Our leadership helping them enhance their capabilities.
position further strengthened in the Tractor,
Responsibility towards planet
Mahindra Auto and non-Mahindra financing At Mahindra Finance, we are committed to protecting Before concluding, I would like to extend my
segments with improvement in market shares. the environment and conserving natural resources. heartfelt gratitude to all you stakeholders for
Increasing penetration in used vehicle financing Our approach to environmental sustainability is your continued support of the Company and
continues to be our focus area. The Collection guided by our internal policies and aligns with strong belief in our abilities. It is our constant
War Room set up by the Company continues relevant external standards. Our continued endeavour to create sustainable value for all of
to focus on early bucket resolutions and the commitment to social responsibility is reflected in you consistently.
use of legal toolkits for enhanced outcomes. our signing of the UNGC to promote 10 principles
I am pleased to report that your Company is in the areas of human rights, labour standards,
well-capitalised, with a strong capital adequacy environment, and anti-corruption. We have our focus Regards,
ratio of 22.5% which provides ammunition for on financing of electrical vehicles, which are part of
future growth. our green product portfolio. This has been taken into Ramesh Iyer
consideration while formulating our sustainability Vice-Chairman & Managing Director
roadmap too. During 2022-23, we financed upwards
of 18,000 electric vehicles.

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Digitalisation

Playing to our
Material issues addressed Key risks considered SDGs impacted

technological strengths
 igital innovation
D Information
and disruption technology risk

We have always used the digital-first strategy to leverage

technology for our businesses. In line with that, we continued The customer landscape is undergoing a Our customer base primarily resides in semi-
to invest in digital technologies, security systems and advanced fundamental transformation, and as digital leaders, urban and rural areas. Therefore, maintaining
we recognise the need to swiftly provide business strong physical appraisal processes and fostering
analytics this year. This helped us create immersive customer solutions that cater to their present and future local customer relationships remain crucial to
experiences, improve operational efficiency, and revolutionised needs. We are witnessing a shift where digital is our business. By combining our digital capabilities
no longer just one of the channels for conducting with the local touchpoints that are significant to
our better decision-making processes. business; it is becoming the core of our business our customer base, we are effectively driving our
operations. The pace of this transition may vary business forward and meeting the evolving needs of
for different businesses, but we must embrace this our customers.
new norm.

Seamless and on-the-go service:

WhatsApp for customer
convenience
We have taken significant strides in our
commitment to empowering customers and
enhancing their experiences. Recognising the
growing significance of conversational marketing,
we have integrated WhatsApp, a powerful tool
that enhances customer interactions and boosts
customer satisfaction. This strategy has enabled
us to develop effective brand-building and
customer relations strategies.

Supporting two languages, it empowers

customers to initiate conversations, apply for
vehicle loans, check loan application status,
and access an array of other services, ensuring
seamless and on-the-go customer service. During
the year, we also:

● Revamped WhatsApp UI, thereby making it

convenient for customers by segregating

3.5
the long list of menu options into critical

lakhs
bucket list
● Implemented query, request, and complaint
services which make it more convenient for Registered WhatsApp user base
customers to interact with the brand, thereby 250% y-o-y
enhancing customer satisfaction

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Digitalisation

Used Car Digi Loans ● Instant confirmation of payment through SMS,

email, or paper receipt, ensuring customer
We introduced Used Car Digi Loans, which We have embarked on a collaborative journey
reassurance. Statement of Account (SOA) is
provides customers with a specialised updated in real-time with leading hyperscalers to enhance our
end-to-end digital journey. In collaboration Cloud footprint, with the aim of enhancing
with Car & Bike (by Mahindra First Choice ● Enhanced security and reliability, instilling
trust among customers and streamlining the customer experience
Wheels) and Rupyy (by Car Dekho), renowned
brands in the used-car industry, this integrated management process across both B2C and
journey offers a seamless and customised
loan experience. ₹ 630 crores
B2B channels. Each hyperscaler has a distinct
role to play in the partnership and brings in
multiple features including cloud-connected cars,
Through this innovative digital journey, Digital collection through
customers can receive personalised loan BBPS for March 2023 customer analytics, and enterprise applications.
offers from Mahindra Finance, empowering It is important to note that the collaboration
them to make faster purchasing decisions.
The integrated system streamlines the loan Quiklyz with these hyperscalers is not exclusive to one
platform but rather focuses on the specific
application process, allowing customers to For hassle-free vehicle access
initiate it effortlessly with Mahindra Finance, strengths and expertise of each, resulting in a
ensuring a quick and convenient experience. With our innovative digital platform, Quiklyz,
comprehensive and well-rounded approach.
we aim to revolutionise car usership by offering
The solution can disburse loans within a few customers a convenient and hassle-free way to
hours, thanks to our dedicated underwriting access brand-new vehicles without the burdens
and processing teams equipped with 15 state- of ownership.
of-the-art fintech tools. Partners involved in
the process will have real-time visibility into the Our platform caters to both retail and corporate Process improvements Udaan
application status and sanctioned loan offers, customers. In the corporate segment, we cater
to marquee companies for their employee Digital technology has also helped make continued Udaan is an end-to-end transformation for
enabling them to provide swift vehicle delivery
vehicle lease programmes and fleet operators improvements in Mahindra Finance’s business MMFSL backed by technology and digital
and delight their customers.
for the business use vehicles, while in the retail processes, thereby addressing stakeholder capabilities. With Udaan, we are enhancing
segment, we target a diverse range of customers, expectations. The initiatives can be divided into the overall experience for our employees and
Bharat Bill Payment System with a particular emphasis on individuals with a two categories. customers. As part of the transformation
(BBPS) millennial mindset, including salaried and self- programme, we are strengthening our tech
employed individuals. Strategic architecture to make the organisation
Before the implementation of BBPS (Bharat
These are project improvements which are future-ready for fast-paced growth.
Bill Payment System), customers had limited A key differentiating factor of Quiklyz
options to pay their EMIs. They could either strategic in nature and span across different
is our extensive portfolio of electric
make cash payments at MMFSL branches or verticals, and may involve external stakeholders
vehicles (EVs). We have partnered with
nearby CSC/FINO outlets or use the MMFSL as well.
leading original equipment manufacturers
mobile app or website. As a result, the payment (OEMs) such as Mahindra & Mahindra, Tata Motors,
collection options were limited, providing Mercedes-Benz, MG, Audi, and Jaguar to offer Operational efficiency
restricted reach. Moreover, the transaction customers a wide range of vehicle options. This involves two aspects:
costs associated with these platforms were
relatively high. However, with the introduction Our value proposition to customers includes zero
of BBPS, customers now have the flexibility to down payment schemes, a variety of subscription 1 Root Cause Analysis (RCA)/ Mahindra Yellow
use banking channels and various third-party tenure options, a single fixed monthly fee, Belt (MYB)
applications to make EMI payments. This has led registration of the vehicle in the customer's name, This indicates improvements achieved at the
to an increase in digital collections and higher hassle-free maintenance, and more. Customers department head level and includes RCA/
adoption of digital payment platforms among can easily explore and book their dream vehicles MYB projects and IT-enabled initiatives. They
the masses. through our user-friendly website, Quiklyz.com, involve structured problem-solving such as the
which provides a seamless vehicle booking and Six Sigma DMAIC (Define, Measure, Analyse,
Furthermore, the cost of transactions through delivery experience. Leveraging a robust digital Improve and Control) methodology.
BBPS is comparatively much lower than architecture, customised product offerings and
other payment options. BBPS offers several a strong team, we have developed employee 2 IT-enabled improvements
advantages, including: vehicle lease programmes with onboarded leading In addition to the above, we undertake various
corporates across industries pan-India. initiatives using IT as an enabler to fast-track
● Convenient bill payment facility accessible
anytime and anywhere the digitalisation of our ecosystem.
One of the key goals we have set for ourselves is
● Being accessible even in regions with to achieve a book size of ₹ 10,000 crores within
minimal banking infrastructure the next three to five years. We believe that
leasing, especially in the last-mile mobility space,
● Multiple modes of payment, including debit including EVs, is gaining traction. Our business
cards, net banking, e-wallets, and UPI model will also prioritise this area of growth.

24 Empowering Emerging India INTEGRATED REPORT 2022-23 25

Supporting
customers in
all their needs
We are always there to help our customers when they need
us. Being leaders in the market is an outcome of being quick
on our feet to identify key market trends and tailoring our
offerings accordingly.

For decades Mahindra Finance has supported many first-time

borrowers with little or no credit history; but a passion to realise
their dreams. We have partnered with their ambitions passionately
and diligently. Today, they are confident participants in India’s
inclusive growth story.

Our product portfolio includes a wide range of financing,

investment, and insurance solutions. To counter the deep cyclicality
in the vehicle financing segment, we ventured into complementary
business segments viz. SME, leasing business, and Digi FinCo.
These complementary businesses provide counter-cyclical benefits
and expand the potential for delivering consistent growth.
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Strategic priorities

A purpose-led
strategy for We are constantly building on our existing strengths while

future growth
reimagining our business priorities to reach new horizons of
growth and opportunities.

Stabilise asset quality Strengthen tech and digital

GS3 below 6% Initiatives Outcomes

● Digitising core with cloud-first infrastructure. Through technology and digital

Initiatives Outcomes
expertise, we deliver an excellent
● Adding APIs to the core system to allow partners to
● Identified the right customer segment: Reassess the Effective deployment of capital customer experience by harnessing
connect with its systems.
highly vulnerable and volatile cash flow segment. and efficient portfolio discipline our internal knowledge and
Targeted affluent 'RURBAN' clients. Target the helps manage risk and drives ● Adding AI/ML-based models across the customer experience of partnering with leading
burgeoning and affluent RUSU customer segment. sustainable returns. lifecycle to create a better customer experience. external organisations.

● Product diversification: Increase in non-vehicle share ● Undertaking a tech transformation journey by

through SME, LAP, Leasing, and Digital FinCo. partnering with aggregator/co-lending platforms.

● Digital and Tech: MMFS has significantly upped its

engagement with credit bureaus. Application scorecard
is being used across businesses. Digital lending journeys
mitigate risk (VKC, e-sign, eNACH).
Capitals impacted Capitals impacted
● Collection War Rooms: Curated treatment for customer
segments and disciplined vehicle repossessions.
● Legal efforts: Leveraging legal tech and debt resolution
platforms to resolve bad debts.

Recharge growth Future-ready human capital

2x AUM through Core + Diversification Initiatives Outcomes

● Realigned organisation; localisation will play a major By being future-ready we improve

Initiatives Outcomes role. both customer experiences and
colleague engagement.
● Empowering employees with the latest tech
● Leadership in vehicle lending: Deepened the rural Fulfiling the needs of customers
infrastructure to drive productivity.
network, scale the Pre-owned Vehicle segment, and and support them to achieve their
increase penetration in both the Tractor and Auto various goals in life. ● Fostering a culture of digital- and data-first.
segments of M&M. Target is to gain further market share.
● Improving productivity through process optimisation.
● Scale new growth engines: SME, LAP, Leasing, and Digital
● Conducting BRSR training for employees covering
FinCo.
9 principles of NGRBC to inculcate ESG preparedness.
Capitals impacted Capitals impacted
● Cross-sell and premiumise: Leverage cross-sell as
MMFSL has a life to date customer base of 9m+ (Active
customers: 2m). Target affluent RUSU customers.
● Leveraged partnerships with dealers and OEMs.

Financial Capital Manufactured Capital Intellectual Capital Social and Relationship Capital Human Capital

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Business model

Creating, sustaining,
and sharing value
Inputs Value creation process Strategy Activities to sustain value Outcomes SDGs impacted

Financial Capital Earn and pay segment for Strategic priorities Financial Capital Financial Capital
customers
Equity – ₹ 17,089 crores Strengthened and sustainable business model Total Income – ₹ 11,056 crores
Enabling livelihood creation by
Borrowings – ₹ 74,946 crores (14% growth y-o-y)
evaluating the earning potential Maintaining strong corporate
Stabilise asset
Read more on page 64 of customers rather than past governance structures EPS – ₹ 16.09
quality
financial history
Regular investor communication

Recharge
growth
Manufactured Capital Manufactured Capital Manufactured Capital
Number of offices – 1,386 Low-serviced regions Value to customers Loans disbursed –
Focus on rural and semi-urban parts Strengthen 10.52 lakh contracts
Smart branches – 527
of India that are not covered by technology and Customer QRCs resolved – 99%
Read more on page 12 conventional banking services digital
FDs mobilised – ₹ 2,000+ crores

Future-ready
Intellectual Capital Intellectual Capital Intellectual Capital
human capital
Mobile app users – 8.7 lakhs Quicker turnaround time Best-in-class ecosystem
Local employment Read more on page 28 benefitting customers
Digital collections - ₹ 8,469 crores Improvement in collection efficiency
Hiring local people, generating
Read more on page 22 Use of data-driven methods across
employment opportunities and Disbursement through digital channels
business lifecycle operations
gaining a better understanding of
Strengthened risk and compliance culture
markets and customers

Human Capital Human Capital Human Capital

Number of employees – 26,329 Performance-oriented culture New recruits – 10,971
Local suppliers Sustainability roadmap
Average training hours – 14 Preference to local suppliers, thereby Strong focus on diversity Attrition rate – 19.94%
Read more on page 72 providing business opportunities and Continuous productivity enhancement
Greening ourselves
improving their service level with
constant engagement

Social and Relationship Decarbonising our Social and Relationship Capital Social and
industries Relationship Capital
Capital Engaged actively with regulators, pursuing full
compliance and driving a societal contribution Lives impacted through various
Contribution by employees under initiatives – 2.57 lakhs
Local communities Rejuvenating Continued investment in ensuring strong positive
various CSR programmes –
Imparting financial literacy and nature customer experience Customer CaP score – 56
97,400 man hours
focusing on livelihood, health and
Cumulative customer contracts – education in communities Read more on page 40
9.0 million+
Read more on page 80

Natural Capital Customised products and Natural Capital Natural Capital

Water consumed – 3,34,753 KL customer - centricity Strong focus on energy efficiency GHG emissions avoided – 1,720 TCO2
Offering customised products and
Energy usage – 1,49,134 GJ Operational excellence for resource conservation
a flexible repayment schedule, and
Read more on page 88 partnering with customers in meeting
the needs of rural India

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Operating context

Key trends
transforming
the industry Financial inclusion Product innovation Accelerated digital Sustainability and
with a customer- adoption ESG integration
48.65 crores centric approach With the growing focus on
Beneficiaries of Pradhan Mantri Jan Dhan sustainability, all sectors across the
Yojana scheme
Customers’ needs and behaviours
are changing as a result of new
₹ 11,200 crores world are stepping up their efforts
technologies. The impact of Digital transactions to incorporate ESG and aligning
Financial inclusion plays an important role COVID-19 has accelerated digital in FY2022-23 their business goals accordingly.
in the process of economic progress by trends as well as prompted
developing a culture of savings among a large Corporations are making
different ways of working, shopping, Across the globe, financial services
segment of the population and broadening efforts to educate customers
socialising, and communicating. companies have been racing to
the resource base of financial systems. With to shift their decisions towards
embrace digitalisation, improve their
multiple schemes like Jan Dhan Yojana and Today, the focus is shifting towards sustainable product choices.
ways of working and streamline
Mudra Yojana, among others, the Government providing each customer with Operations are becoming more
processes to provide enhanced
of India has laid greater emphasis on individual, tailor-made offerings and and more sustainable and are now
customer services and greater
furthering the cause of financial inclusion and experiences. Through their regular designed for creating a positive
convenience. Today, the use of
bringing a larger part of the population into customer interactions, virtually ecological impact.
artificial intelligence (AI) and
the ambit of formalised banking. The Finance or otherwise, banks gain a lot of other cognitive technologies is
Minister has proposed the introduction of data and insights into customer helping companies mitigate risks,
75 digital banking systems in 75 districts behaviour and preferences, which
We have identified several fundamental by scheduled commercial banks, which enable them to personalise
understand customer needs,
and predict customer concerns,
industry trends which are transforming the will empower the population digitally in their offerings. thereby addressing expectations
a consumer-friendly manner, supporting
financial services landscape. Our business interoperability and financial inclusion. Supported by advanced technology
and delivering a smooth
customer experience.
needs to keep abreast of these trends and and data analytics, banks can reach
The Pradhan Mantri Jan Dhan Yojana (PMJDY) out directly to customers with According to the RBI, Digital
respond in an agile manner to ensure we scheme has achieved a significant milestone in products that suit their needs and transactions are expected to
remain relevant to our customers and build the financial year ending 31 st March 2023. The convenience. This trend is pushing show a growth of 56% in a single
basic bank accounts under the scheme have banks to move from a product- year, rising from ₹ 7,197 crores in
long-term value for our stakeholders. registered a record surge of ₹ 50,000 crores, centric business model to a more FY2021–22 to ₹ 11,200 crores
with the total balance reaching ₹ 1.99 lakhs customer-centric business model. in FY2022–23. The increase is
crores, an increase from ₹ 1.49 lakhs crores due to payment infrastructure
in the previous financial year. Additionally, improvements, a responsive
there has been an addition of 5 crores of new regulatory framework, and
accounts under the scheme, bringing the total years. a stronger emphasis on
number of beneficiaries to 48.65 crores. customer-centricity.

Our response

Committed to financial inclusion, Mahindra Understanding these trends allows us We invested in advanced technology, At Mahindra Finance, sustainability
Finance offers customers a diverse range to better support our customers in translating into cutting-edge is our strategic priority and key
of financial solutions to help them achieve their needs, be there at every stage products and service offerings, responsibility. With inclusive
their goals. For decades Mahindra Finance of their lives and tailor products that and have been stepping up the stakeholder consultation, robust
has supported many first-time borrowers meet their evolving expectations. digitisation momentum. Quiklyz governance structure, setting up
with little or no credit history but a passion By harnessing new technology, we provides convenient vehicle access, of aspirational targets and strong
for realising their dreams. Today, they are have again enhanced and evolved our and we have incorporated the review mechanism to achieve those
confident participants in India’s inclusive customer experiences in FY2022. We WhatsApp Bot to facilitate seamless targets, we are set to accelerate our
growth story. have also continued our efforts to customer interactions and improve sustainability journey. We prioritise
make our services more accessible overall satisfaction. Additionally, reducing of our environment footprint
for all of our customers through our introduction of Used Car Digi and financing of EVs as a key
improving face-to-face, digital and Loans ensures customers enjoy a component of our environmentally
remote interactions. streamlined digital journey from friendly product portfolio.
start to finish.

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Stakeholder engagement

Enhanced We interact with our stakeholders through robust

engagement processes and listening mechanisms to
Our efforts towards building a strategic and
proactive dialogue with our key stakeholders help

commitment to
learn about and respond to their concerns, to keep us gain deeper insights into our business drivers
them informed of our activities and create mutually and the needs of society. This enables us to improve
supportive opportunities and results. our internal processes, capitalise on business
opportunities, reduce our operational risk and remain

grow together
ahead of the competition while creating greater value
for all stakeholders.

Community/NGOs Employees Customers Regulators Investors Dealers and OEMs Lenders Suppliers

Places where we People who deliver People and business Who we seek to The capital and funding Enabled customer Partners who provide us Where we source our
have an impact our purpose we serve comply with in law that supports our experience by having with funding to grow over goods and services
and spirit business activities seamless digital integration asset book

We strive to operate To lead the way in addressing We want to deliver easy financial We engage with public We aim to deliver robust returns We enable market expansion A positive relationship Through the engagement
as a sustainable the evolving needs of our clients solutions to our customers in authorities to play our and long-term sustainable value through deeper rural enables us to raise growth of suppliers, both locally
How we create value

and responsible and the advances in technology, a simple and cost-effective way part in supporting the for investors penetration along with usage capital in a timely and and globally, we seek to
company, working we are developing a workforce with great customer experience effective functioning of the of technology for improved cost-effective manner support our business with
with local partners to that is future-ready and are financial system and the customer experience the provision of efficient
promote social and co-creating with our employees broader economy and sustainable goods
economic development an inclusive, innovative and services
and client-centric culture
that drives ambition, action
and accountability

● Climate change ● Capability building, ● Differentiated product and ● Strong capital base and ● Strong and sustainable ● Business performance ● Timely repayment of both ● Sustainability and diversity
● Human rights development and service offering liquidity position financial performance ● Health of assets principal and interest ● Open and transparent
● Financial inclusion enhancement of skills ● Digitally enabled and positive ● Robust standards for conduct ● Progress on ESG matters ● Operational and resource ● Adherence to a healthy credit process
Their interests

● Social impact ● Positive and enabling work experience ● Positive sustainable efficiencies discipline ● Accurate and on-time
environment ● Sustainable finance development ● Timely updates on financial payments
● Safety and security ● Digital innovation in financial performance of the Company
● Employee wellbeing services
● Operational resilience
● Customer protection

● CSR initiatives – ● Training calendar – annual ● Gram Sabha – ongoing ● Continued engagement and ● Quarterly investor calls/ ● Dealer portal – formal ● Quarterly and annual results ● Informal engagement –
Mode and frequency of engagement

ongoing ● Talent management and ● Customer meets/Shikhar representation presentations mechanism ● AGM and other disclosures ongoing
● Volunteering activities employee development Sammelan – ongoing ● Quarterly and annual ● Quarterly financial ● Informal engagement – ● Engagement with Treasury ● Dealer engagement meets
● Community need initiatives – ongoing ● Dealer and OEM events such compliance reports statements ongoing and Corporate Affairs team – ● BRSR training for
identification – ongoing ● Performance appraisal – bi- as loan mela and roadshows ● Performance reports shared ● Annual general meeting (AGM) ● Dealer and OEM events ongoing Suppliers
as per CSR project annual and annual – ongoing with the Securities and ● Annual report such as dealer meets and
requirements ● Employee engagement ● Mandi Diwas – weekly Exchange Board of India ● Annual business roadshows – ongoing
● Community activities – ongoing ● Saathiya Diwas – ongoing (SEBI) and the Reserve Bank responsibility report and
engagement initiatives ● Diversity and inclusion ● NOC Activity – monthly of India (RBI), Ministry of sustainability report
● Impact assessment initiatives - annual Corporate Affairs ● Postal ballot
studies ● Letters and emails

● Local employment ● Local employment generation ● Digital disruption ● Credit rating ● Credit rating ● Market share ● Credit rating ● Sustainable supply chain
generation ● Happy and productive ● Customer need identification ● Governance ● Sustainable business model ● Business profitability ● Sustainable/relevant ● Fair procurement practices
Topics of engagement

● Gender equality employees and satisfaction ● Transparency and disclosures ● Governance ● Dealer relations and business model ● Brand
● Carbon emissions/ ● Employee growth and ● Brand ● Investor security ● Return on net worth/ satisfaction ● Governance and risk ● Supplier engagement and
footprint development ● Customer privacy ● Representation earnings per share ● Service and support management development
● Waste management ● Human rights ● Product portfolio with regulators ● Communications with ● Sustainable supply chain ● Lender relationship ● Compliance with
● Financial literacy ● Safety ● Financial product and ● Environmental, Social and investors ● ESG risks and opportunities regulatory/statutory
● Community initiatives ● Diversity and equal services information Governance (ESG) aspects ● Exponential growth requirements
opportunity ● Cost rationalisation ● Community initiatives
● Community initiatives

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Materiality

Materiality process

Identifying mutual Identify Prioritise

concerns to benefit all

Material issues are determined through a wide range Material issues are prioritised in terms of their
of inputs, including regulatory reviews, benchmarking potential impact on business, external operating
and through group management processes environment and key stakeholders

With a strong understanding of our operating environment, we actively

assess the factors that affect our performance and value creation. As a
Disclose Validate
responsible and sustainable business, we diligently evaluate the material The most material topics are mapped to the relevant Validate with the management
issues that shape stakeholder perceptions and decisions. These issues GRI standards indicators and its progress is disclosed.

serve as the foundation for our thought processes, reporting practices,

governance, and strategy development, enabling us to effectively meet
stakeholder expectations.
Material issues

Human Capital

Material GRI/ GRI standard Boundary Impact KPIs

topics Non-GRI indicator used

Employee GRI/Some 404-1, 404-2, Within Employees are our brand ambassadors Increase
training and Non-GRI 404-3 Mahindra who carry forward the Company’s mission in training
education internal Finance of transforming rural lives and driving coverage
KPIs positive change in the communities. We
have accordingly placed great emphasis
on employee learning and development,
mentoring, and knowledge sharing
through various initiatives and structured
programmes.

Diversity GRI 405-1 Within We are an equal-opportunity employer Refer

and equal Mahindra when it comes to attracting, retaining GRI-KPI
opportunity Finance and developing new talent. These all help
drive a respectful and inclusive workplace
for our colleagues, better service to our
customers and engagement with our
communities.

Employee Non-GRI Non-GRI Within Mahindra Finance makes employee Employee

engagement Mahindra engagement a high priority, recognising engagement/
Finance that an engaged workforce performs satisfaction
better, is more committed and delivers a survey
stronger customer focus.

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Materiality

Financial Capital Social and Relationship Capital

Material GRI/ GRI standard Boundary Impact KPIs Material GRI/ GRI standard Boundary Impact KPIs
topics Non-GRI indicator used topics Non-GRI indicator used

Credit ratings Non-GRI Non-GRI Within We believe that our strong credit Credit rating Customer Non-GRI Non-GRI Within and We maintain a high level of customer CaP score survey
Mahindra rating improves access to capital at from two rating relationship outside centricity in our business and
Finance competitive rates. Eventually helping agencies management Mahindra endeavour to meet the changing
us to fund the aspirations of rural Finance needs of customers by offering
India. Thus, credit ratings have an customised financial products
impact on operational and financial and services. Through our vast
decisions along our value chain, from experience and market knowledge
ensuring investor security to meeting we are providing financial resources
our customers’ needs. to the under serviced parts of the
nation. Thus, being instrumental in
Economic GRI 201-1, 201-2, Within We focus on delivering sustainable Refer GRI- KPI financial inclusion.
performance 201-3 Mahindra value to our customers and the wider
Finance fraternity of stakeholders, despite Local GRI/some 413-1 Within and Our Corporate Social Responsibility Increase in
challenges such as industry volatilities communities non-GRI outside (CSR) initiatives attempts to transform number of
or economic hardships. We take a and corporate internal Mahindra the landscape of our businesses beneficiaries
longer view of the business and evolve citizenship KPIs Finance with a focus on creating value for for flagship
an appropriate roadmap to strengthen indigent communities that desire a programme for
the core fundamentals of our business. secure future by creating sustainable drivers
livelihoods for them.

Intellectual Capital Natural Capital

Material GRI/ GRI standard Boundary Impact KPIs Material GRI/ GRI standard Boundary Impact KPIs
topics Non-GRI indicator used topics Non-GRI indicator used

Digital Non-GRI Non-GRI Within We have been at the forefront of Onboarding on Climate GRI/Some 305-1, 305-2, Within and We are committed to minimising our Maintaining
innovation and Mahindra leveraging state-of-the-art technology mobile app for strategy Non-GRI 305-3, 305-4, outside environmental impact and building declining trend in
disruption Finance platforms for deriving business customers internal 302-1, 302-3 Mahindra operational resilience to the effects CO2 emissions per
benefits and differentiation in the KPIs Finance of climate change on our business employee (tonnes
marketplace through automation, Increase digital and the communities we serve. We of CO2eq per
digitalisation and analytics. The full collections have also mapped and identified risks employee)
set of digital payment options and pertaining to sustainability and climate
the integration with partner networks change and shared them for inclusion Increase the
has significantly supplemented the in our risk register. plantation
collection efforts of collections on the with focus on
field and at the branches. survival rate

Financing
M&M EVs

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Sustainability strategy

Making We create lasting impact for

our customers, employees, and
Sustainability roadmap

sustainable investors and aim for the social and

environmental change that makes

choices our stakeholders proud to work with

us. This is only possible by focusing
on delivering sustainable operations.
We align our performance with the three pillars
of the Mahindra Group Sustainability Framework
for long-term value creation. The alignment
with material topics of the Mahindra Group
sustainability framework allows us to remain
consistent with our parent organisation's vision
and strategy.

Mahindra Group Sustainability Mandate

People
Greening ourselves Decarbonising our Rejuvenating nature Enabling stakeholders to rise
industries (addressing Scope 3)
Material Measure of FY2021 FY2022 FY2023 FY2023
Goal statement
topic performance target target target performance

Human Capital

Net Zero on Scope 1+2 Transition to green portfolio Promoting regenerative

emissions (RE usage and (EVs in auto, LMM and agriculture (via improved Employee Create a more Satisfaction MMFSL ≥ 4.45 MMFSL - 4.69
energy efficiency) Logistics; Green Buildings farming techniques) training and engaged work survey
and Resorts; Green Energy- education environment MRHFL – 4.40+ MRHFL – 4.62
solar, hybrid, storage) MIBL – ≥ 4.45 MIBL – 4.25
Build people Increase in MMFSL 0 >60% MMFSL – 90.73%
capabilities training coverage
MRHFL - Maintain training coverage of
MRHFL – 94.4%
85% and above for all employees

Net Zero on water and Supporting transition to Afforestation at scale MIBL – 83% 84% 85% MIBL – 85%
waste (reuse, reduce and net zero supply chain (Hariyali programme)
recycle) (e.g. Logistics) Social and Relationship Capital

Local Uplift communities Increase in number 25,000 27,500 30,250 1,62,400+

communities through need- of beneficiaries
and based interventions for flagship
corporate and increase programme for
Adopting material circularity Industry circularity Biodiversity conservation citizenship beneficiaries drivers
(reduce, recycle and green (e.g. auto recycling) (impact assessment and coverage under
material) restoration) CSR programmes

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Sustainability strategy

Planet Profits
Minimising our environmental impacts Building evergreen businesses

Material Measure of FY2021 FY2022 FY2023 FY2023 Material Measure of FY2021 FY2022 FY2023 FY2023
Goal statement Goal statement
topic performance target target target performance topic performance target target target performance

Natural Capital Intellectual Capital

Climate Ensure continual Maintaining Digital Digital Onboarding on 5 lakh 6 lakh 7 lakh 8.7 lakh registered
Strategy reduction in carbon declining trend in MMFSL – 0.77 MMFSL – 0.69 MMFSL – 0.63 MMFSL – 0.69 innovation innovation and mobile app for registered registered registered users
(managing emissions CO2 emissions per and disruption customers users users users
carbon employee (tonnes MRHFL – 0.24 MRHFL – 0.22 MRHFL – 0.21 MRHFL – 0.35 disruption
Increase digital MMFSL MMFSL MMFSL MMFSL
emissions) of CO2eq per
collections ₹ 3,500 crores ₹ 4,000 crores ₹ 5,000 crores ₹ 8,469 crores
employee) MIBL – 0.65 MIBL – 0.59 MIBL – 0.53 MIBL – 1.20
MRHFL – 20% MRHFL – 25% MRHFL – 30% MRHFL – 32%
Increase plantation Increase the 30,000 34,500 39,675 2,94,000+
of tree across India plantation with Financial Capital
focus on survival
rate
Credit Maintaining Credit rating MMFSL - Maintaining highest level of credit AAA/Stable from all
Increase financing Financing M&M 41% 50% 50% 44% ratings credit rating at from two rating rating applicable for our sector rating agencies
of EVs electric vehicles market share market share market share market share par with M&M agencies CRISIL: AAA/Stable
MRHFL - Maintaining current rating of AA+ India Ratings and
CARE: AA+/ Stable
Customer Improve CaP CaP score MMFSL – MMFSL – MMFSL – MMFSL – 56
relationship score survey Maintain score Maintain score Maintain score
management of 60 and of 60 and of 60 and
above above above
MRHFL – MRHFL – MRHFL – MRHFL – 55
Maintain score Maintain score Maintain score
of 30 and of 30 and of 30 and
above above above
MIBL – NA for CaP score of CaP score of MIBL – not conducted
2021 55 60

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Unparalleled
reach across
India’s length
and breath
We believe in reaching customers, irrespective of the location or
the social stratum; our deep local connection is a cornerstone.

Our network transcends geographic, linguistic, and cultural barriers.

We operate an extensive network of 1,386 offices, spanning
27 states and 7 union territories.

Our nationwide network of branches and locally recruited

employees have facilitated catering to the diverse financial
requirements of our customers by identifying and understanding
their needs and aspirations.

We aspire to be the gateway for the financial needs of all our

countrymen who reside in the remotest corners of rural and
semi-urban areas, and hence, we have been expanding our physical
footprint in terms of the branch network.
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Governance
Our reputation as an ethical and trustworthy Company is our most important asset. Strong governance,
comprehensive risk management and operational excellence are central to our business success and

Strong foundation for

sustainability strategy. We have an active, experienced, and well-informed Board. Through our governance
mechanism, the Board along with its Committees accepts its fiduciary responsibilities to all our
stakeholders – ensuring transparency, fair play, and independent decision-making.

maximising value Sustainability governance structure

M&M Group Sustainability Council (At M&M Group Level)
Strong governance is essential to building a resilient and
A cross-sector committee of senior executives chaired by a member of the Group Executive
successful organisation in which sustainability is entrenched Board. Mr. Ramesh Iyer, Vice Chairman & Managing Director - Financial Services Sector, is a
at all levels. We engage openly and transparently with all member of the Mahindra & Mahindra Group Sustainability Council.
stakeholders through our governance processes to create a
Mahindra Finance Sustainability Council
comprehensive and fair business. Robust policies, standards
To act as a liaison between the Mahindra Finance businesses and the Group Sustainability
and management systems guide our operations to address Council. Consists of a cross-functional team using an integrated network.
risks and opportunities and enable us to measure our Responsibilities are to:
performance and meet our commitments.
● Effectively integrate sustainability into business strategy and practices
● Ensure all relevant sustainability policies and goals are well-informed, aligned and
efficiently executed
● Ensure a high level of organisational understanding, alignment and engagement of the
sustainability vision throughout the Company

Sustainability champions (FSS Level)

Leading sustainability for each business with responsibility for:

● Disseminating information, ensuring monitoring and review of data and information

● Being a single point of contact between the businesses and the sustainability cell
● Ensuring reporting under the GRI framework
● Implementing initiatives and driving sustainability awareness programmes

Region-wise Sustainability Champions (Regional Office level)

Overall responsibility at the regional office for data collection. They are aided by a team of
sustainability enthusiasts to implement various sustainability activities.

Board’s role Key responsibilities

The Board has the primary responsibility for ● Strategising
setting the strategic direction of the Company ● Challenging and supporting the management to
and ensuring that the Company's affairs are drive sustainable value creation for shareholders
appropriately managed. This involves establishing
the corporation's strategic direction, evaluating and ● Entrepreneurial and ethical leadership and
approving strategic initiatives, and assessing the engaging with stakeholders
issues, forces, and risks that drive the Company's ● Promoting our culture, purpose, and values
long-term performance. The Board is tasked with the
crucial responsibility of overseeing and ensuring the ● A framework for effective internal and financial
Company's long-term growth and success. control and prudent risk management
● Compliance with law and recognition

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Governance

Expertise Board expertise Performance evaluation of Board and Directors

(%)
MMFSL’s Board brings together a wealth of The performance evaluation is carried out on a secured online portal whereby the evaluators are able to
knowledge, perspective, professionalism, 97 100 submit their ratings and qualitative feedback, details of which are accessible only to the NRC Chairperson.
95
divergent thinking, and experience. 90 90
Our Board members have a deep
understanding of governance, technical,
financial, and non-financial issues.

Policies and standards

Business Financial Technology Governance Consumer We have developed policies for our businesses considering our Group policies, values, and principles. We
experience experience and and insights and
and risk innovation regulatory marketing empower our employees to learn, understand, and apply improvement techniques to reach the industry's best
oversight oversight exposure standards and beyond. To learn more about our policies, please refer - https://mahindrafinance.com/investor-
zone/corporate-governance#Policies

Board demographics
Board Independence Board age profile Board diversity

Whistle blower Prevention of insider trading

20% Measures of creating awareness:
6 3
Channels of Reporting:

● Set up of an Independent third party Ethics

Helpline Service Portal: Measures pertaining to prevention of Insider
https://ethics.mahindra.com Trading including:
4
● Toll free No: 000 800 100 4175 1. Launch of Audio Visual Training Module with
score-based assessment.
Dissemination of information vide Notice
7 80% Boards, Emailers, on the intranet and website 2. Periodical reminders/ awareness on window
of the Company, Training Modules. closures/ PIT Regulations through Jagrut Insider
Independent Directors 36-55 years Male ppts, including through WhatsApp group, Desktop
Non-independent Directors 56-74 years Female message on closure of window.

3. Physical Induction Sessions with new joiners on a

60 5.30 years 94% periodic basis.

Average Director age Average tenure of Average attendance rate

as on 23rd June 2023 Independent Directors in Board meeting

8 out of 9 2
Committee Chairpersons are IDs Independent Women Directors

Board committees AC Audit Committee

The Committees constituted by the NRC Nomination and Remuneration Committee

Board focus on specific areas and take
informed decisions within the framework SRC Stakeholders Relationship Committee
of delegated authority and make specific
CSRC Corporate Social Responsibility Committee
recommendations to the Board on
matters within their areas or purview. ALC Asset Liability Committee
The decisions and recommendations of
the Committees are placed before the RMC Risk Management Committee
Board for information or for approval,
as required. CSI Committee for Strategic Investments

ITSC IT Strategy Committee

DAIC Digital and AI Committee

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Governance

Best secretarial practices Strengthening the compliance Chief Compliance Officer Internal Ombudsman Chief Risk Officer
● Quarterly Confirmation given to Committees environment with RBI directives Appointed a Chief Compliance Officer Appointed an Internal Ombudsman Chief Risk Officer ensures the
of Board that it’s Terms of Reference have
been complied with. Compliance with Scale Based to oversee and monitor compliances (“IO”). implementation of the Risk
as applicable to the Company. A Report of number of complaints Management Policy and Framework
● The Company endeavours to send Agenda & Regulations (“SBR”) Adoption of Board approved including systematic identification
escalated to IO and status of disposal
Notes to the Directors at least 9 days prior to The SBR was notified by the Reserve Bank of India Compliance Policy which lists down, of such complaints is placed before and mitigation of various risks faced
the Meeting against the statutory timeline of (“RBI”) effective 1 st October 2022. The RBI has inter-alia, the Compliance philosophy the Board for its review. by the Company.
7 days. classified Mahindra Finance as NBFC in Upper Layer and culture, processes for identifying,
● The Minutes of Meetings of Board and (“UL”). We have ensured full compliance with various
assessing, monitoring, managing, and
Committees are strived to be shared within requirements prescribed under SBR for NBFC-UL
reporting on Compliance risk.
10 days of completion of the Meeting, as within the specified timelines including adopting
against the statutory timeline of 15 days. policy for enhanced regulatory framework, Internal
Capital Adequacy Assessment Process Policy
● A Summary of all important proposals is (ICAAP), complying with large exposure norms,
sent separately to the Directors prior to the setting limits for sensitive sector exposure etc.
Meeting as a ready reference. Even summary CSR Grants Manual and Dissemination Workshop
of minutes of such Meetings is shared
with them.
Risk Based Internal Audit (“RBIA”) In pursuit of good governance, the Company designed a “CSR Grants Management Manual” for
framework its CSR Implementation partners. The purpose of the manual is to build the capacities of the CSR
● An Action Taken Report on the key decisions implementation partners to manage the CSR grant and fulfil compliance of CSR provisions in letter
taken/suggestions made at Board and The Audit Committee has approved a Risk Based
and spirit.
Committee Meetings is recorded with details Internal Audit (“RBIA”) framework, along with
of owner and Target date and update thereof appropriate processes and plans for internal audit The manual provides guidance on how to strengthen internal controls at each stage of the
is placed and discussed at the subsequent for FY2023 and FY2024. The audit plan is aimed project management and how to improve their processes, procedures and operations-related
meetings for review. at evaluation of the efficacy and adequacy of MMFSL-supported CSR programmes. The manual was developed in the consultative manner with the
internal control systems and compliance thereof, CSR implementation partners of the Company.
robustness of internal processes, and compliance
Board Portal with laws and regulations.
We migrated to a new secured Board portal
which inter-alia provides a one stop and seamless
solution for access and archive to Board/
ICAAP Our approach to public policy and advocacy
Committee materials to all the Directors. The Board has adopted Internal Capital Adequacy We are a member of several industry associations that share our common goals, and we routinely
Assessment Process (“ICAAP”) Policy and work together to advance public policies of interest to us and the financial services industry.
Framework with the objective of ensuring
Quarterly Secretarial Audit availability of adequate capital to support all
Secretarial Audit of the Company is conducted risks in business as also enable effective risk Name of the Industry Association/Institution Type of Association/Position Held
on a Quarterly basis in addition to the Annual management system in the Company.
Secretarial Audit mandate. Finance Industry Development Council (FIDC) Chairman of FIDC

Setting benchmarks on compliance Federation of Indian Chambers of Commerce and Member of the NBFC Taskforce
Shareholder Satisfaction Survey ● Standardisation of product policies Industry (FICCI)
Portal created for investor feedback on the
services provided by the Company and its ● Daily Liquidity Coverage Ratio implemented Confederation of Indian Industry (CII) Co-Chairman of National Committee on Financial
Registrar and Transfer Agent. ● Compliance policy put in place Inclusion & Digitisation

● FPC (Fair Practice Code) revamped Bombay Chamber of Commerce and Industry Member of Banking & Finance Committee
Annual Secretarial Compliance Report
● AML & KYC training module formulated and
(“ASCR”) pan-India trainings initiated
IITB-Washington University Member of the Board of Advisors
The ASCR for FY2023 was issued with additional
● Implementation of IDEA software for monitoring IMC Chamber of Commerce and Industry Co-Chairman of NBFC Committee
confirmations on compliance by the Company
with respect to maintenance of Structured Digital exceptions
Assocham Chairman of National Council on Non-Banking
Database under Insider Trading Regulations, ● Strengthening of process for repossession Finance Services & Infrastructure Finance
Related Party Transactions, updation of of NPA
Policies, disclosure of material events to Stock
Exchanges etc.

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Governance

Board of Directors
Dr. Anish Shah
Non-executive Chairman

Dr. Anish Shah is the Managing Director and CEO of Mahindra & Mahindra Limited.
He joined Mahindra Group in 2014 as Group President (Strategy) and worked closely
with all businesses on key strategic initiatives, built capabilities such as digitisation
and data sciences and enabled synergies across Group companies. In 2019, he was
appointed Deputy Managing Director and Group CFO, with responsibility for the
Group Corporate Office and full oversight of all businesses other than the Auto and
Farm sectors, as a part of the transition plan to the CEO role.

Dr. Shah was President and CEO of GE Capital India from 2009-14, where he led
the transformation of the business, including a turnaround of its SBI Card joint
venture. His career at GE spanned 14 years, during which he held several leadership
positions at GE Capital’s US and global units. As Director of Global Mortgage,
he worked across 33 countries to drive growth and manage risk. As Senior Vice
President (Marketing and Product Development) at GE Mortgage Insurance, he led
various growth initiatives and played a key role in preparing the business for an IPO
as a spinoff from GE. In his initial years with GE, he also led Strategy, eCommerce,
and Sales Force Effectiveness and had the unique experience of running a dot-com
business within GE. Dr. Shah also received GE’s prestigious Lewis Latimer Award for
outstanding utilisation of Six Sigma in developing a “Digital Cockpit.”

He has diverse experience with global businesses beyond GE. He led Bank of
America's US Debit Products business, where he launched an innovative rewards
programme, led numerous initiatives in payment technology and worked closely with
various teams across the Bank to enhance value for the customer.

As a strategy consultant at Bain & Company in Boston, he worked across multiple

industries, including banking, oil rigs, paper, paint, steam boilers, and medical
equipment. His first role was with Citibank in Mumbai, where he issued bank
guarantees and letters of credit as Assistant Manager, Trade Services.

Mr. Shah holds a PhD from Carnegie Mellon’s Tepper School of Business, where
his doctoral thesis was in the field of Corporate Governance. He also received
a Master's degree from Carnegie Mellon and has a post-graduate diploma in
as on 31 st March 2023 Management from the Indian Institute of Management, Ahmedabad. He has received
various scholarships, including the William Latimer Mellon Scholarship, Industry
Standing – Left to Right Scholarship at IIMA, National Talent Search and Sir Dorabji Tata Trust.

1 Mr. Siddhartha Mohanty* 2 Mr. Dhananjay Mungale 3 Mr. C. B. Bhave

Non-executive Director Independent Director Independent Director

4 Mr. Amit Kumar Sinha# 5 Mr. Milind Sarwate

Non-executive Director Independent Director

Sitting – Left to Right

1 Mr. Diwakar Gupta 2 Ms. Rama Bijapurkar 3 Dr. Anish Shah

CHAIRPERSON MEMBER
Independent Director Independent Director Non-executive Chairman
AC - Audit Committee RMC - Risk Management Committee
4 Dr. Rebecca Nugent 5 Mr. Ramesh Iyer NRC - Nomination and Remuneration Committee CSI - Committee for Strategic Investments
Independent Director Vice-Chairman & Managing Director
SRC - Stakeholders Relationship Committee ITSC - IT Strategy Committee
CSRC - Corporate Social Responsibility Committee DAIC - Digital and AI Committee
*Ceased to be Director with effect from 12th May 2023
#Shall cease to be Director with effect from 28 th July 2023
ALC - Asset Liability Committee

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Mr. Ramesh Iyer Mr. C. B. Bhave

Vice-Chairman and Managing Director Independent Director

Mr. Ramesh Iyer’s key mandate at Mahindra Group is to drive inclusive growth Mr. Chandrashekhar Bhave started his career in the Indian Administrative Service
aligned to the Group’s guiding belief of driving rural prosperity. He has been (IAS) in 1975 after completing his Bachelor's degree in Electrical Engineering.
instrumental in building Mahindra Finance since 1994 into one of India’s leading He worked in different positions in the Central and State Governments and also
rural finance companies. won awards from the Government of Maharashtra for his outstanding work in
the area of family welfare and excellence in administration. He then worked in the
Mr. Iyer manages the Financial Services Sector of the Mahindra Group with total
Securities and Exchange Board of India (SEBI) as a Senior Executive Director from
Assets Under Management (AUM) of the Sector being an upwards of ₹ 1,00,000
1992–1996, helping create the regulatory infrastructure for Indian capital markets.
crores (around $ 13 billion). This Sector includes Mahindra & Mahindra Financial
Services Limited (a listed Entity with over $ 4 billion market capitalisation), Mr. Bhave then took voluntary retirement from the IAS to set up the National
Mahindra Insurance Brokers Limited, Mahindra Rural Housing Finance Limited, Securities Depository Limited (NSDL) in 1996 and was its Chairman and Managing
Mahindra Manulife Investment Management Private Limited, Mahindra Manulife Director from 1996 to 2008. Mr. Bhave was the Chairman of SEBI, India's
Trustee Private Limited and Mahindra Ideal Finance, Sri Lanka. He also oversees the capital markets regulator, from 2008 to 2011. He was also the Chairman of the
operations of Mahindra Finance USA, LLC. a U.S. joint venture with De Lage Landen Asia-Pacific Regional Committee and a member of the Technical and Executive
Financial Services Inc. (DLLFS) a wholly-owned subsidiary of the Rabobank Group. Committees of the International Organisation of Securities Commissions (IOSCO)
over this period.
Mr. Iyer has been closely involved in the development of the country’s dynamic
Financial Services Sector. Mr. Iyer is the Chairman of the Finance Industry Mr. Bhave had several professional affiliations that include:
Development Council (FIDC) and also co-chairs the NBFC Committee of the IMC
● Member of the Board of the Public Interest Oversight Board (PIOB), Madrid
Chamber of Commerce & Industry. He is a member of various Committees like
which supervises the work of the standard-setting bodies of the International
the CII National Committee on Financial Inclusion and Digitisation, the CII National
Federation of Accountants from the perspective of public interest (2011-2017).
Committee on Leadership & HR, the Banking & Finance Committee of the Bombay
Chamber of Commerce and Industry (BCCI) and the Taskforce of NBFCs of the ● Trustee of the IFRS Foundation, London that oversees the International
Federation of Indian Chambers of Commerce and Industry (FICCI). Accounting Standards Board (2012-2017).

Apart from being on the various bodies of the Financial Services Sector, Mr. Iyer is Mr. Bhave is the Non-executive Chairman of the Indian Institute for Human
also on the Advisory Boards of various Educational Institutions like IITB-Washington Settlements, a non-profit organisation established to create and disseminate
University, Vidyalankar Institute of Technology – School of Management, WeSchool's knowledge related to human settlements in the context of urban areas.
PGDM-Rural Management Committee and on the College Development Committee
of Vivek College of Commerce.

Mr. Iyer holds a Bachelor’s degree in Commerce and a Master’s degree in

Business Administration.

Ms. Rama Bijapurkar

Independent Director

Ms. Rama Bijapurkar is a respected thought leader on business-market strategy

Mr. Dhananjay Mungale
and India’s consumer economy and has four decades of experience in market
Independent Director
research and marketing and business strategy consulting.
Mr. Dhananjay Mungale is a seasoned banker and finance professional with
She is a very experienced independent director, having served on the Boards
extensive global experience in investment banking, corporate banking, and private
of several blue-chip corporates, including in the financial services sector and
banking across Europe and India. Over 25 years, he served in leadership positions in
social organisations, and has also served on the governing councils of academic
Europe and India at Bank of America and DSP Merrill Lynch.
institutions and social organisations.
Since 1999, Mr. Mungale serves on the Boards of eminent Companies in India as
She has been Visiting Faculty and Professor of Management Practice at the Indian
an independent director. Over the period these have included Mahindra Finance,
Institute of Management Ahmedabad. She is also an author of acclaimed books on
JP Morgan Asset Management, L&T Infra Finance, LIC Housing Finance, Mahindra
India’s consumer market and consumer-based business strategy.
CIE Automotive, TN Petro Products, DSP Blackrock, Kalpataru Ltd., NOCIL Ltd.,
Chowgule Steamship etc. He also serves on Advisory Boards of select private Ms. Bijapurkar holds a B.Sc. (Hons) degree in physics from the University of
equity organisations and investment committees of family offices in India and Delhi and a Post Graduate Diploma in Management from the Indian Institute
London. He also regularly mentors young talent in the Fintech start up sector of Management, Ahmedabad. Past employment includes McKinsey & Company,
across India and abroad. MARG Marketing and Research Group (now AC Nielsen India) and Mode Services
(now TNS India).
Besides his business and professional achievements, Mr. Mungale also finds time
to work with eminent institutions in educational and not-for-profit domains as a
member of their Governing Councils. These have included Mahindra United World
Colleges and Oxford Centre for Hindu Studies.

Mr. Mungale has completed his Bachelor's in Commerce and Law from the University
of Mumbai and is an Associate Member of the Institute of Chartered Accountants
of India. CHAIRPERSON MEMBER

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Governance

Mr. Milind Sarwate Mr. Diwakar Gupta

Independent Director Independent Director
Mr. Milind Sarwate, Founder & CEO of Increate ( https://increate.in/), is an Advisor, Mr. Diwakar Gupta is a post-graduate in Physics from the University of Delhi and a
Mentor, Independent Director, & ESG Contributor. Increate means “Uncreated” graduate with Honours in Physics from St. Stephen’s College, New Delhi.
or “Undiscovered”. The firm accordingly works towards business and social value
creation, with a focus on capability-building, and the governance & social aspects Mr. Gupta is a seasoned Banker having over 48 years of experience in the banking
of ESG. and financial services sector. He was associated with the State Bank of India
(SBI) for 39 years, where he held several top executive/senior management
His independent directorships include Asian Paints, Mahindra Finance, FSN positions and demitted office as its Managing Director and Chief Financial Officer
E-Commerce (Nykaa), Matrimony.com, and Hexaware. Mr. Sarwate specialises in in 2013. During his tenure with SBI, he had, among various diverse assignments,
audit committee roles. He has been on listed company boards since 2005. His partnered with Unique Identification Authority of India Limited for the rollout
previous board memberships include Mindtree and International Paper. of the biometric-based unique identification programme of the Government of
His 39-year experience includes long stints as CFO and CHRO in Marico & Godrej. India (Aadhaar).

Mr. Sarwate is a Chartered Accountant (1983), Cost Accountant (1983), Company Mr. Gupta was also the Chief Executive Officer of SBI Cards and Chief Operating
Secretary (1984), and a CII-Fulbright Fellow (Carnegie Mellon University, USA, Officer of State Bank of Patiala, a subsidiary of SBI. After his stint in SBI, he worked
1996). He has been awarded ICAI CFO Award (2011), CNBC TV-18 CFO Award as a Senior Advisor (Banking Project) at Aditya Birla Nuvo Ltd. and as an Advisor
(2012) & CFO India Hall of Fame induction (2013). at India Value Fund Advisors, a leading India-focused PE fund (since rebranded as
True North). Mr. Gupta has also worked with the Asian Development Bank, Manila
(ADB), where he oversaw the private sector and PPP operations of the Bank
and participated in the Bank’s broader corporate initiatives like launching and
Dr. Rebecca Nugent operationalising the biometric-based National ID system of the Philippines (akin to
Independent Director Aadhaar), and creating ADB Ventures, a donor-funded hybrid venture trust fund.
He has chaired the Digital Innovation Sandbox and has been a member of the
Dr. Rebecca Nugent is the Stephen E. and Joyce Fienberg Professor of Statistics &
steering committee supervising ADB’s digital agenda.
Data Science Department Head for the Carnegie Mellon Statistics & Data Science
Department and an affiliated faculty member of the Block Centre for Technology Mr. Gupta was a Member of the Expert Committee for Resolution Framework for
and Society. She has over 15 years of experience in university-level academia COVID-19-related Stress, constituted by RBI in 2020. He was Chairman of the
in statistics & data science consulting, research, applications, education, and Task Force created by the Department of Financial Services, Ministry of Finance,
administration. Dr. Nugent is the co-chair of the National Academy of Sciences, Government of India, to review consortium / multiple lending and suggest measures
Engineering, and Medicine study on Improving Defense Acquisition Workforce to make it more efficient. He was also a member of the High-Level Steering
Capability in Data Use and recently served on the NASEM study Envisioning the Committee to review the Supervisory Processes of Banks, chaired by the Deputy
Data Science Discipline, The Undergraduate Perspective. Governor of the Reserve Bank of India.

Dr. Nugent is the Founding Director of the Statistics & Data Science Corporate
Capstone programme, an experiential learning initiative that partners with industry
and government organisations on developing and deploying data science solutions
to current business challenges and regularly consults with global enterprises in
finance, marketing, health care, and educational technology. Dr. Nugent has worked
extensively in clustering and classification methodology with an emphasis on
high-dimensional, big-data problems and record linkage applications and has served
in related leadership positions, including President of the International Federation of
Classification Societies (slated for 2022).

She has won several national and university teaching awards, including the
American Statistical Association Waller Award for Innovation in Statistics Education
and serves as one of the co-editors of the Springer Texts in Statistics.

She received her PhD in Statistics from the University of Washington, her M.S.
in Statistics from Stanford University, and her B.A. in Mathematics, Statistics and
Spanish from Rice University.

CHAIRPERSON MEMBER

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Governance

Mr. Raul Rebello Mr. Amarjyoti Barua

Executive Director & MD and CEO – Designate Non-executive Director
(Appointment effective 1 st May 2023) (Proposed appointment effective 28 th July 2023)

Mr. Raul Rebello is a career banker with extensive experience in the domain of Mr. Amarjyoti Barua holds a Bachelor’s degree in Economics and a Master’s degree
Rural Banking and Financial Inclusion. He joined Mahindra & Mahindra Financial in Business Administration.
Services Limited (MMFSL) on 1 st September 2021 as the Chief Operating Officer
Mr. Barua is the Executive Vice-president of Group Strategy, Mahindra & Mahindra
of the Company. Over the past 21 months, he has capably led the growth and
Ltd. (“M&M”) since May 2023. He is a member of the Group Executive Board. In his
transformation journey in MMFSL, demonstrating strong leadership.
current role, he is leading the Group Strategy Office and works with the Group’s
Before joining Mahindra Finance, he was with Axis Bank as EVP & Head – Rural overall portfolio of businesses for growth over the short and long term.
Lending & Financial Inclusion. In his 21 years stint with Axis Bank, Mr. Rebello
Before joining M&M, Holding Company of the Company, Mr. Barua was the Finance
led key businesses, including Rural Lending, Farmer Funding, Gold Loans, MSME
Leader for the Oilfield Services & Equipment (OFSE) segment of Baker Hughes.
lending, Commodity Loans, Tractor & Farm Equipment Lending, Agri-Value
As the finance leader for OFSE, he was responsible for partnering with operations
chain Deposits, Payments & Insurance. He also led the Business correspondent
to deliver growth & profitability at the $14 billion, 35000+ employee segment
channel, including 15,000+ partner outlets and the Micro-ATM channel of the
of Baker Hughes. Before Baker Hughes, Mr. Barua held multiple roles at General
Bank. He played a pivotal role in increasing the Banks Distribution in rural and
Electric Co. (GE) for over 18 years. He was the Chief Financial Officer (CFO) for
semi–urban areas through light format Banking outlets, Micro-ATMs and Rural
GE’s Power Conversion business. He was also the CFO for GE Mining, Financial
ecosystem partnerships.
Planning & Analysis Leader for GE in India and Executive Audit Manager at GE’s
Mr. Rebello is credited with several transformational interventions, viz. introducing Corporate Audit Staff. In his early years with GE, Mr. Barua completed the Financial
various end-to-end digital initiatives and paperless loan journeys for low-income Management Programme and served as the finance manager for GE Aircraft
households, besides launching suitable phygital tools and customer journeys. Under Engines in India before joining the Corporate Audit Staff.
his leadership, Axis Bank won the prestigious Financial Inclusion Award at the Asian
Banking and Finance Awards in 2019 and 2021.

He represents a strong combination of business leadership and social commitment,

which aligns with the Mahindra Group’s core purpose of Rise. He is personally
passionate about impacting the livelihoods of low-income communities and
agrarian households.

He is a Post Graduate in Management from the Goa Institute of Management.

Mr. Ashwani Ghai

Non-executive Director
(Appointment effective 23rd June 2023)

Mr. Ashwani Ghai has long and diverse work experience, across functions and
geographies, in LIC of India and Board level experience in LIC Housing Finance Ltd
and LICHFL Financial Services Ltd. He is a post-graduate in Economics, PGEP from
IIM Ahmedabad & Fellow of the Insurance Institute of India (FIII).

In his work experience of 35+ years in LIC of India and LIC Housing Finance,
Mr. Ghai has worked across multiple functions viz. Marketing, HR, Investments,
Fund Management, Enterprise Risk Management, Organisational Restructuring,
Compliance, IPO launching of LIC, Business Strategy Formulation and its
implementation etc.

Before joining as Additional Director, Management Development Centre of LIC of

India, Mr. Ghai held a variety of positions, in LIC of India and LIC Housing Finance
Ltd, including Chief Operating Officer & Whole Time Director of LIC Housing
Finance Ltd., Non-executive Director on the Board of LICHFL Financial Services
Ltd, Executive Director (IPO Cell) of LIC where he handled the job of steering the
preparatory work and successful listing of shares of Life Insurance Corporation of
India, Chief (Investment Operations) of LIC Of India and Executive Director (Strategy
Implementation) in LIC Of India.

CHAIRPERSON MEMBER

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Governance

Steering Committee
and CS

Mr. Ramesh Iyer Mr. Raul Rebello Mr. Vivek Karve Mr. Anthony Heredia Mr. Vedanarayanan Seshadri Mr. Shantanu Rege
Vice Chairman & MD Executive Director & Chief Financial Officer MD & CEO, MD and Principal Officer, MD and CEO,
MD and CEO – Designate Mahindra Manulife Investment Mahindra Insurance Brokers Limited Mahindra Rural Housing Finance Limited
Management Private Limited

Ms. Deepa Ranjeet Ms. Farida Balsara Mr. Atul Joshi Mr. Manish Sinha
Senior Vice-President, Chief Legal Officer Chief–Human Resources & Admin CHRO – Mahindra Finance and
Chief–Digital Finance Business (Upto 30 th June 2023) Financial Services Sector
(Effective 1 st July 2023)

Mr. Ruzbeh Irani Mr. Mohit Kapoor Ms. Mallika Mittal Ms. Brijbala Batwal
President–Group Human Resources Group Chief Technology Officer, Chief Risk Officer Dy. Senior Vice–President –
Mahindra Group Mahindra Group Company Secretary

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In step with
digital India
From our perspective, technology serves as a reliable
companion in generating business value. It holds a pivotal
position in enhancing productivity, expanding our customer
base, and ensuring superior customer experiences.

We have always invested in advanced technology, translating into

cutting-edge products and service offerings, and have been stepping
up the digitisation momentum. We have improved our online and
mobile presence to provide a better digital experience for our
customers as well as convenience for employees, customers,
and partners.

We continue to expand ML/AI penetration through business

intelligence dashboards and insights which have aided the Company
in rolling out business and collections strategic initiatives.
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Investors

Material issues addressed Key risks considered SDGs impacted

Focusing on • Credit ratings • Liquidity risk

sustainable returns • Economic

performance
• Business risk

• Market risk

Our long-term financial resilience depends on the continuing

support of the investor community. We aim to communicate
transparently with all investors so they understand and remain Progress on sustainability roadmap – Investors
aligned with our strategy. Goal statement
Measure
FY2021 target FY2022 target FY2023 target FY2023 performance
performance

Maintaining credit Credit rating MMFSL - Maintaining highest level of credit rating AAA/Stable from all rating
rating at par with from two rating applicable for our sector agencies
M&M agencies MRHFL - Maintaining current rating of AA+ CRISIL: AAA/Stable
India Ratings and
CARE: AA+/ Stable

At Mahindra Finance, we focus on delivering sustainable value to our customers and the wider fraternity of
stakeholders, despite challenges such as industry volatilities or economic hardships. We take a longer view of
the business and evolve an appropriate roadmap to strengthen the core fundamentals of our business.

Credit rating
During FY2023, India Ratings & Research Private Limited assigned IND/AAA Stable rating to the Company’s
Fixed Deposits; CRISIL upgraded the Company’s Long Term Rating from “CRISIL AA+/Stable” to “CRISIL AAA/
Stable” and also assigned “CRISIL AAA/Stable” ratings to its Fixed Deposit Programme and Non-Convertible
Debentures. Further, the other ratings were re-affirmed by the Rating Agencies. With the above rating
affirmations, your Company continues to enjoy the highest level of rating from all major rating agencies at the
same time.

Adding economic value to stakeholders

We are committed to doing business the right way by adopting best practices and continuously assessing our
performance on financial as well as non-financial parameters.

Economic Value Added

₹ in crores
FY2023 FY2022
Economic Value Generated and Distributed (EVG&D)
(Ind-AS) (Ind-AS)

Economic Value Generated

a) Revenue 11,056.09 9,718.80
Economic Value Distributed 9,813.09 9,174.84
b) Operating costs 2,183.35 3,272.77
c) Employee wages and benefits 1,584.27 1,171.40
d) Payments to providers of capital 5,286.83 4,333,03
e) Payments to government 713.75 368.16
f) Community investments 44.89 29.48
Economic Value Retained (calculated as economic value generated less economic 1,243.00 543.96
value distributed)

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Investors

FY2023 performance Capital adequacy Efforts to reduce volatility in asset quality

During the year under review, we solidified our As on 31 stMarch 2023, the Capital to Risk We have set up collection war rooms to upgrade collection efforts, developed curated collection processes
leadership position across tractor, Mahindra auto Assets Ratio (CRAR) stood at 22.5%, which is well for different customer segments, and employed stringent arbitration for bad debts and loan pools. We have
and non-Mahindra vehicle segments. Additionally, above the minimum requirement of 15% CRAR also started using analytics to gauge some early warning signals about exposures that could potentially slip
we achieved a leadership position in the pre-owned prescribed by the Reserve Bank of India. Out of into NPA. In turn, this helps to activate the collection machinery in advance to prevent slippages into the
car segment during Q4 FY2023. With strong the above, the Tier-I capital adequacy ratio stood NPA pool.
growth in well-established vehicle segments at 19.9%, and the Tier-II capital adequacy ratio
and steady expansion in the SME business, we stood at 2.6%, respectively.
accomplished our highest annual disbursement Consistent improvement in asset quality
record of ₹ 49,541 crores. The dual strategy of Asset Liability Management
enhancing the mass-affluent category to improve
asset quality and scaling the pre-owned asset (ALM) Gross & net stage – 3 Gross stage – 2
book to enhance margins progressed successfully. We have a stable business model which has (%) (%)
Healthy disbursements during the year have withstood the test of time. It has been steadily
helped grow the book – ₹ 82,770 crores, a growth 8.0 14.3
strengthened by the rich insight gathered by us, 7.7
of 27% y-o-y. through the decades. 6.7 11.7
Over the years, we have continued to stick to our 5.9
During the year, we embarked on 9.7
core business with a strong sense of discipline. 8.4
multiple strategic initiatives which led to We have strategically chosen the semi-urban and 4.5

● Sustainable improvement in asset quality rural geography as our primary areas of focus. A 3.4 3.5 6.0
resulting in lower credit costs strong balance sheet, well-diversified funding mix, 2.9
2.5
comfortable liquidity profile and steady returns 1.9
● Better risk management by leveraging
guided us through turbulent times and retained
analytics/business intelligence
our customers' trust. We always ensure that
● Improvement in business volume by targeting prudent Loan-to-Value (LTV) ratios are strictly
the affluent RUSU customer segment with adhered to while lending.
relevant lifecycle products FY22 FY23-Q1 FY23-Q2 FY23-Q3 FY23-Q4 FY22 FY23-Q1 FY23-Q2 FY23-Q3 FY23-Q4

● Focused productivity improvement initiatives

undertaken resulting in cost optimisation GS-3 reduced from `4,976 crores in FY2022 to GS-2 reduced from `9,257 crores in FY2022 to
` 3,717 crores in FY2023 ₹ 4,928 crores in FY2023

ALM position ₹ in crores

125%
89,750

75,732 100%
71,358

61,799
75%

37,863 50%
27,305
24,107

15,382 15,545 25%

10,349 10,094
6,229
5,587
3,059
0%
Upto 1 Month Upto 2 Month Upto 3 Month Upto 6 Month Upto 1 Year Upto 3 Year Upto 5 Year

Cumulative Inflow Cumulative Outflow Cumulative Mismatch%

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Customers

Material issues addressed Key risks considered SDGs impacted

Fostering Customer relationship Pandemic risk

relationships of trust
management

Being a prominent and esteemed NBFC, we have earned

the trust of numerous customers in rural and semi-urban Progress on sustainability roadmap – Customers
regions of India who rely on us for their financial needs.
FY2023
These customers are the foundation of our business, and Goal statement Measure performance FY2021 target FY2022 target FY2023 target
performance

we prioritise their satisfaction throughout all levels of our Improve CaP Improve CaP score MMFSL – Maintain score of 60 and above 56
operations. Our focus is on developing and providing services score
MRHFL – Maintain score of 30 and above 55
and products that are specifically designed to cater to their
MIBL – NA for CaP score of CaP score of Not
requirements, incorporating the latest technologies to enhance 2021 55 60 Conducted
convenience and improve their overall experience.
CaP score - Customer as Promoter

Customer interaction mediums

Mahindra Finance offers multiple customer interaction mediums to ensure convenient and efficient communication:

Network Customer contact centre Customer app

1,386 7 1 million+
Offices pan-India Days a week, our customer Customer app downloads
contact centre is available in
9 languages, providing support
and handling over 18,000 calls
per month.

Website WhatsApp

5 lakh ~14,000
Monthly visitors on Monthly active users
our website on WhatsApp

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Customers

Shubh Utsav festive campaign Sampark and Mini branches

We implemented the "Shubh Utsav" festive We executed the Sampark branch initiative,
campaign in October-November 2022 to increase extending their services to niche rural markets
awareness and promote our product offerings and surrounding villages. The impact includes
during the festive season. The primary goal of this enhanced customer reach, retaining the
initiative was to generate awareness and promote first-mover advantage, and benefits for all
product offerings to potential customers during stakeholders. Effective communication and
the festive period. visibility were achieved through activities with
OEMs and dealers, emphasising Mahindra
The campaign involved: Finance's customer-centric approach and
strategic resource allocation for rural
● Communication at key touchpoints,
customer outreach.
including branches and dealerships, as well

99
as through diverse mediums for direct
customer engagement
● Below-the-line (BTL) activations at car and
tractor dealerships and marketplaces Sampark branches

● A hyperlocal digital marketing campaign was

89
launched, targeting priority districts
● Multiple CRM campaigns (SMS and e-mailers)
were executed, utilising internal and
Mini branches
external databases

MF-Sutradhar programme Real-time customer pulse

The MF-Sutradhar programme, implemented in through Real-time NPS
April 2017, has been successful in generating
We introduced the Real-time Net Promoter Score
more references for business from existing
(RNPS) initiative to assess customer advocacy
customers. It has helped in retaining customers,
levels. Through a digitally managed system,
building strong relationships, and expanding into
SMS surveys were sent to customers within
untapped villages.
72 hours of onboarding and loan completion.
The surveys, available in vernacular languages,
Benefits collect immediate feedback and present the
● Improved customer retention rate responses on a dashboard. The RNPS score aids
in identifying areas for service improvement, with
● Cost and time savings in reaching untapped
data analysis conducted according to geography,
villages and customer segments
age, and business vertical. Detailed reports
● Expansion into new territories and villages outline action planning, ensuring the ongoing
based on Sutradhar references enhancement of customer satisfaction.
● Positive impact on community goodwill and
perception of MMFSL as a reliable financial
institution
● Integration of digital processes for code
creation, lead generation, and business
conversion

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People

Material issues addressed Key risks considered SDGs impacted

Empowering • Employee training and • Human capital risk

our colleagues
education

• Diversity and equal

opportunity

Our employees are the core of our achievements, serving • Employee engagement
as the crucial engine that keeps our organisation running
smoothly. At Mahindra Finance, we foster a secure and
inclusive work environment that consistently acknowledges
their valuable contributions. Through various initiatives Progress on sustainability roadmap - People
and programmes, we prioritise enhancing their abilities and
FY2023
expertise, supporting their personal and professional growth. Goal statement Measure performance FY2021 target FY2022 target FY2023 target
performance

Create a more Satisfaction survey MMFSL ≥ 4.45 4.69

engaged work
environment MRHFL – 4.40+ 4.62

MIBL – ≥ 4.45 4.25

Build people Increase in MMFSL – > 60% 90.73%

capabilities training coverage
MRHFL-Maintain training coverage of 85% and above 94.4%
for all employees

MIBL – 83% MIBL – 84% MIBL – 85% 85%

Diversity and inclusion Awareness and sensitisation

‘A fine balance’: Inclusion Workshop was held
Diversity and inclusion are fundamental values
for leaders in middle and senior management.
that drive our success and innovation. In our
This initiative emphasises the critical role of
commitment to cultivating a diverse and inclusive
inclusive leadership in driving organisational
workplace, we have implemented several
change and fostering an inclusive culture.
initiatives that promote equity, foster a culture of
This workshop offered tools to help our leaders
belonging, and celebrate the unique perspectives
actively champion diversity and inclusion,
and talents of our workforce. These initiatives and
creating an environment where all employees
achievements are a testament to our unwavering
feel valued, empowered, and motivated to
commitment to diversity and inclusion. They
contribute their best.
have positively impacted our workforce in driving
innovation, enhancing collaboration, and creating The workshop enabled discussion on a range
a vibrant and inclusive workplace culture. of topics, including unconscious bias, inclusive
leadership practices, and strategies for creating
an inclusive environment. We achieved an
impressive milestone by covering 100% of the
total eligible population for this programme,
which included 243 leaders across various
locations in our organisation. The workshop
garnered a highly positive response and received
a remarkable feedback score of 3.90 on a
scale of 4.

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People

Care for Women policies Learning and development MEP – Managerial Excellence
At MMFSL, we engage and support our female We commit to fostering talent by creating an Programme
employees by implementing policies that ensure environment that encourages learning and The Managerial Excellence Programme was
their safety, comfort, and well-being. Our growth and enables us to build a next-generation a two-day workshop for tenured managers,
policies are designed to empower women, both organisation with a focus on promoting focusing on improving team management and
personally and professionally, and demonstrate innovation, delivering business value and motivation skills. The programme received high
our commitment to their success and overall driving thought leadership. Through a variety ratings (3.9/4) for content relevance, instructor
well-being. of programmes, the focus is on improving quality, and overall experience. It exemplified the
productivity and operational efficiency and organisation's investment in mid-level managers
cultivating a culture of ongoing learning. and highlighted the importance of effective team
management for a strong organisational culture.

Policies
● Women wellness
DAKSH: Capability building programme
for business and collection executives
121
Participants
● Maternity transition Daksh is a capability-building programme for
business and collection executives aimed
● Maternity travel reimbursement to enhance their skills and productivity. NEEV – First-time people manager
● Maternity hybrid working The programme focused on assertive
Women affinity group: Mahindra World conversations, field investigation, sales
programme
● Air travel for all women employees of Women processes, relationship building, and being A two-day programme was implemented
future-ready. The key learning from this project for newly promoted managers, focusing on
● Upgraded hotel entitlements to ensure We established a Women's Engagement Group,
has been managing the scale of operations. transitioning them to team management roles.
safe and convenient accommodation Mahindra World of Women – MWOW, which has
The programme covered essential skills such as
made significant strides in fostering a supportive
3,276
● Additional support for maternity trust-building, conducting reviews, and providing
network. This group serves as a platform
feedback. With a high participation rate of 78%,
expense for women to connect, share experiences,
the programme received positive feedback on
and advocate for gender equality within our Total participants
● Creche/nanny expense allowance content (3.88/4), instructor (3.94/4), and overall
organisation. We organise regular virtual sessions
experience (3.94/4). The initiative successfully
● Cab travel for women at odd hours specifically designed for our female colleagues,
aimed at nurturing knowledge and fostering
Samarth equipped managers with crucial people
outside the base location management skills to perform in their elevated
connections among them. This programme is aimed at improving the quality
● Cab reimbursement for female of TAT and operational efficiency across the and new responsibilities.
colleagues' late working hours Women’s Day celebration: We commemorated branches, maintaining the first-time-right work

● Performance appraisal norms for

Women's Day by organising a 10-day celebration
centred around the theme of “Embracing
standards, and providing customer delight at all
the branches where the customers/stakeholders 182
employees on maternity leave Equity.” One of the key initiatives was sharing get to interact with the account’s teams. Participants
different perspectives by the senior leadership A blended learning approach was adopted, and
team on the theme, which would go a long certificates were awarded upon successful
way in driving equity and inclusion at all levels. completion. The programme received positive Employee engagement
Another much-appreciated initiative was the feedback, with high scores for relevance, query
Listening to our people helps us create an
Uthaan – Second Career programme session titled "Rising Strong: Empower Yourself resolution, and training material. The content
environment that supports our employees.
Uthaan is our specialised Second Career - Wheel of Life", conducted by Aparna Devagiri, and trainers were internal, ensuring easy
We continuously communicate and engage
programme that aims to support women who an esteemed author, coach, and researcher. management, and communication within
with our people in designing and evolving the
have taken a career break and want to return In keeping with our Mahindra Rise philosophy, the Company.
way we work to foster greater enterprise-wide
to the workforce. Our objective is to increase “Only when we enable others to rise will we
collaboration, continuous learning and open and
363
the representation of women in our workforce rise”, we organised a visit to the NGO Urja,
transparent dialogue.
by tapping into diverse talent and providing which provides shelter to women marginalised
opportunities for women to resume their careers by society. We implement various employee-engagement
Participants
seamlessly after a break. We recently hosted a programmes to create a positive work
Recognition from India Today- “Happiest
hybrid outreach event, wherein we received more environment and foster employee satisfaction.
Workplace for Women” against best-in-class
than 500 registrations and were attended by These include various activities such as
organisations like Amazon Retail India Pvt. Ltd,
over 150+ women. The event featured a series of celebrations, sports events, talent shows, health
Accenture India Pvt. Ltd, AstraZeneca Pharma
activities designed to empower and equip women and wellness initiatives, communication channels,
India Ltd, Proctor & Gamble Health Ltd, CEAT Ltd,
with the necessary skills and knowledge to employee surveys, wedding benefits, and rewards
Cognizant Technology Solution India Pvt. Ltd,
successfully transition back into the workforce. and recognition programmes. The initiative
Apple India Pvt. Ltd, Tata Consultancy Services
aims to boost productivity, improve teamwork,
Ltd, and VIP Industries Ltd.
promote work-life balance, and enhance
employee happiness.

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People

Sanjeevani Seva (Health and Wellness) Reward and Recognition programme Health and safety
Sanjeevani Seva, an initiative focused on the Under the Reward and Recognition programme, Safety is at the core of facilitating enhanced workforce productivity which culminates in
health and wellness of our employees, aims employees are recognised and rewarded under improved operational efficiencies. Moreover, we are dedicated to building a safety-centric
to enhance their well-being and productivity various categories as mentioned below: mindset in our workforce, as the success of our management systems and capacity-
while promoting work-life balance and providing building programmes hinges on our employees translating this mindset into actions in their
access to healthcare. Employees and their family • Business performance
daily operational activities.
members gain access to a health app that offers
• Portraying Rise behaviours
0 5
various features for free or at discounted rates.
These features include 24/7 doctor consultation, • Long service association
mental wellness counselling, pharmacy orders,
Fatalities work-related injuries
annual health check-ups, discounted gym • S
 pecial club membership recognition
memberships, quarterly awareness webinars, and (ex. MD’s club)
periodic fitness challenges.

Mahindra Finance–Pulse 10,000+ Lost day rate*

Under MF–Pulse, various surveys are launched/ Employees received recognition
participated in with the intent to benchmark our
processes, policies, and programmes with other
organisations and identify strengths and focus on
1.74% 0.14% 32.92%
areas of improvement. MMFSL MRHFL MIBL

Absentee rate*
Employee engagement
programmes: 0.001% 0.35% 0.026%
Celebration Mahindra Finance Got Talent MMFSL MRHFL MIBL
Celebrations at the workplace help create a A quarterly talent show where employees get
sense of unity among employees by celebrating an opportunity to showcase their talent and
accomplishments, special moments, festivals etc. relive their hobbies in a category such as singing, * due to injury
dancing, kids talent contest, and musicians of
Festival celebrations Mahindra Finance etc.
Celebrating festivals at the workplace encourages Defensive driving orientation Installation of heating panel
diversity and inclusivity that allows employees Birthday and Funday celebration
programme Mahindra Finance effectively implemented a
to socialise and bond with one another. Celebrating employees special moments monthly
workplace safety initiative to install the Heating
Employees freely engage in informal games while along with fun Friday activities across pan- The programme was launched for the field
panel in cold regions of the North like Leh,
experiencing joy and delight at the workplace. India branches. team. The training was provided to 4,000 team
Kargil etc. to address cold temperatures below
members, resulting in increased awareness
zero degrees Celsius. After the installation of
Rajbhog of speed and traffic control measures. After
the heating panel, the temperature of offices
the implementation of this programme, the
Rajbhog is a quarterly event that helps employees goes beyond 10 degrees Celsius and office
related awareness has increased for the field
come together and enjoy home-cooked meals. productivity has also increased gradually. The
team, and there has been a gradual decrease
The event brings people together to relish programme's success has opened avenues for
in road incidents. The programme received
regional delicacies and participate in fun activities its replication in other branches facing similar
positive feedback from the operation team and
with a high spirit. temperature conditions, creating a favourable
beneficiaries, and it will be replicated in other
work environment for employees across
FSS entities
Chunauti (Employee Premier League) multiple locations.
Annual sports event conducted at respective
locations provides a platform for sports 4,000 100
enthusiasts to celebrate sportsmanship. The
No. of field team members
event encourages healthy competition among heating panels installed in 8 offices
departments and helps improve team dynamics. who received the training
to increase the temperature above
10 degree Celsius

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People

POSH Human rights Employees joining during the reporting year

Upholding the dignity of all employees, irrespective We consider respect for human rights, ethical and MMFSL Employees Joining in the Reporting Year (Count in Nos.)
of their gender – Gender Neutral. environmentally responsible business practices, Workforce Level FY2023
and fair and safe working conditions as integral Age <30 30-50 >50 Total Total
All employees (permanent, contractual, temporary aspects of our Company's culture and identity. We Gender Male Female Total Male Female Total Male Female Total Male Female Employees
and trainees) are covered under this Policy. emphasise the explicit inclusion of human rights
Senior management 0 0 0 7 3 10 1 0 1 8 3 11
in our policies, procedures, and ethics training
Middle management 10 7 17 175 34 210 2 0 2 187 41 228
Measures: to promote awareness among employees and
prevent any violations moving forward. Junior management 6,054 203 6,279 4,378 96 4,492 1 0 1 10,433 299 10,732
● Awareness programme conducted - mailers and
Grand Total 6,064 210 6,296 4,560 133 4,712 4 0 4 10,628 343 10,971
video on POSH at workplace
● Online e-learning module developed for training
Awards and accolades
Employees leaving in the reporting year
all the employees. Certified Great Place to Work (GPTW)
MMFSL Employees Leaving in the Reporting Year (Count in Nos.)
● 83% of the employees have completed this We have been certified as a Great Place to Work
Workforce Level FY2023
training. (GPTW). This prestigious certification recognises
Age <30 30-50 >50 Total
our organisation's commitment to creating a Total
● ICC training conducted for all Gender Employees
positive and inclusive work culture that prioritises Male Female Total Male Female Total Male Female Total Male Female
ICC members – 1 session.
the well-being and engagement of our employees. Senior management 0 0 0 6 1 7 2 0 2 8 1 9
● POSH sensitisation training conducted for Middle management 5 1 6 134 26 160 9 0 9 148 27 175
HR team – 5 sessions. Best Place to Work in India by Ambition box
Junior management 1,827 76 1,903 2,473 61 2,534 17 2 19 4,317 139 4,456
This recognition further motivates us to uphold Grand Total 1,832 77 1,909 2,613 88 2,701 28 2 30 4,473 167 4,640
83% our core values and create an exceptional work
environment for our employees where they can
Employees completed thrive both personally and professionally. Training hour of employees (Hours)
POSH training Workforce level FY2023
Gender Male Female Total
Senior management 552 72 624
Middle management 35,101 2,568 37,669
Junior management 3,02,233 12,828 3,15,061
Performance table TOTAL 3,37,886 15,468 3,53,354
Workforce distribution
MMFSL Active employee count (Count in nos.) Parental leaves in the reporting year
Workforce Level FY2023 Particulars Male Female
Age <30 30-50 >50 Total Total Employees that availed Parental Leave in reporting period 487 34
Gender Male Female Total Male Female Total Male Female Total Male Female Employees Employees who returned to work after availing Parental Leave in reporting period 485 17
Senior management 0 0 0 22 5 27 15 0 15 37 5 42 Employees who were due for return to work after availing Parental Leave in reporting 2 17
Middle management 18 10 28 1,581 116 1,697 199 6 205 1,798 132 1,930 period
Junior management 8,105 329 8,434 15,267 505 15,772 147 4 151 23,519 838 24,357 Return to work rate 99.59% 100.00%
Grand Total 8,123 339 8,462 16,870 626 17,496 361 10 371 25,354 975 26,329 Total number of employees currently working who completed 12 months in reporting 202 22
period after returning to work following a period of Parental Leave
Total number of employees who were supposed to complete 12 months in current 258 31
reporting period after returning from Parental Leave in the prior reporting period(s)
Retention rate 78.29% 70.96%

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Community

Partnering holistic
Material issues addressed Key risks considered SDGs impacted

Pandemic risk

development
Local communities
and corporate
citizenship

To foster the growth and well-being of the communities surrounding

us, we actively engage in a diverse range of thoughtfully curated
social programmes. These initiatives are specifically tailored to
drive meaningful transformations in the regions where we have a
Progress on sustainability roadmap – Community
presence. Our relentless efforts have resulted in substantial positive
impacts, touching the lives of countless individuals and families over Goal statement Measure performance FY2021 target FY2022 target FY2023 target
FY2023
performance
the fiscal year.
Uplift communities
through need-
Increase in number
based interventions
of beneficiaries for
and increase 25,000 27,500 30,250 2,56,507
flagship programmes
beneficiaries’
for drivers
coverage under
CSR programmes

The CSR endeavours of our organisation aim Lives impacted

to bring positive change to underprivileged
communities, empowering them with financial 3,61,943
stability and improved prospects for a brighter
future. Our primary focus areas include enhancing
opportunities and facilitating sustainable 2,56,507
livelihoods, with a particular emphasis on
healthcare, education, employment, rural
development, and overall community well-being.
1,00,190

51,763

FY2020 FY2021 FY2022 FY2023

Key focus areas

Education Women empowerment Environment

Livelihood Healthcare

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Community

Skill development and Road safety awareness training for drivers Financial and digital literacy project
The objective of this project is to inculcate
livelihood generation safe driving practices among drivers and thus
We launched the ‘Money Gyaan Se Jeevan
Aasaan’ financial literacy campaign under the
contribute towards the reduction of road theme Money Kathayein. It focused on raising
Swabhimaan accidents and loss of lives. awareness about digital financial fraud, promoting
Swabhimaan initiative, a trailblazing programme,
responsible borrowing habits, and educating about
stands out by adopting a unique lifecycle
approach. It addresses the neglected segment
of the four-wheeler, app-based taxi, school van,
7,850+ government schemes for SMEs and MSMEs. The
campaign aimed to empower individuals with
existing drivers knowledge for informed financial decisions and
and small commercial vehicle drivers, providing
ensure their financial well-being.
comprehensive support and empowering their
children to break the cycle of poverty. Scholarship for drivers’ children

In FY2023, we reached out to over 1,62,400+

The objective of this project is to provide financial
aid for the education of drivers’ children studying
85 million
beneficiaries across India for the drivers' Views garnered through financial
in grades 1 to 12 and pursuing graduation and
community through the below-mentioned and digital literacy project
post-graduation.
interventions, which are currently being
implemented under this flagship programme in
Mahindra Pride
multiple states across India in collaboration with
local implementing partners.
7,000+ Mahindra Pride Classroom programme reaches
children of drivers out to marginalised and socially excluded women
Projects
to create job opportunities in various sectors and An auto rickshaw driver
enable women to become financially independent
Driver training for freshers and participate actively in the workforce. Under enhances his financial condition
The objective of this project is to provide driving this programme, we conducted 40 hours of by attending a financial literacy
skills training (LMV and e-auto rickshaw) to men training for 62,900+ final-year female students
and women freshers, help them obtain the Skill in classrooms across government/government- training workshop
India certification, earn a permanent driving aided colleges, polytechnics, industrial training Dilip Gupta, residing in Lucknow, improved his
license, and enhance livelihood opportunities. institutions, employer premises etc., to enhance financial situation after attending a Mahindra
their employability prospects in emerging Finance-supported training workshop on financial
areas like Science, Technology, Engineering
3,100+
literacy. With 20 years of experience, Gupta's
and Math, digital marketing, coding, digital and monthly income of ₹ 12,000/- was insufficient
financial literacy, new educator and regenerative for his family's needs. However, the workshop
freshers
agriculture, which are in high demand in today's enlightened him about various financial schemes,
job market. including insurance, savings, and investment
Auto mechanic training
instruments like FDs, PPFs, SIPs, and mutual

62,900+
The objective of this project is to provide auto funds. Dilip took proactive steps and opened a
mechanic (two-wheeler repair and maintenance) savings account, and recurring deposit account
training to youth and help them obtain livelihood Final-year female students trained through at the post office to secure his and his family's
opportunities. Project Mahindra Pride financial future.

Scholarship programme
2,300+ empowers a Chennai student
Women empowerment
youth We initiated pilot programmes focused on Project Hunnar- Divyang Vikas Kendra
Durgasri SM, a talented student and aspiring women's economic empowerment and skill Divyang Vikas Kendra is a skill development
boxer from Chennai, has overcome financial development, which aimed to equip women with project wherein 250+ youth with disabilities
Financial planning training for drivers challenges with the help of the Saksham the necessary skills to enter the workforce and are provided with a wide range of skills such as
The main purpose of this project is to make Scholarship Programme for drivers' children. achieve economic independence. Through these leadership, social, communication, computers,
drivers financially literate and make them aware Despite her father's modest income, Durgasri projects, over 2,500 women were trained in and basic life skills. The project aims to create
of good financial practices for better money excelled in academics and boxing, winning various areas such as sewing machine operation, demand for a skilled workforce of persons with
management, savings, and investments and accolades in state and national competitions. general duty assistance, data entry operations, disabilities in information technology (IT) and
promote the use of financial literacy mobile apps With a scholarship of ₹ 10,000 provided by and call centre/PO-related skills. information technology-enabled services (ITeS),
to encourage digital inclusion. Mahindra Finance, she is now pursuing her retail, hospitality, banking, financial services,

2,500+
education and boxing dreams while making her and insurance (BFSI) industry, and making the
parents proud.
1,42,000+
candidates competent and skilled enough to
Women trained through various programmes perform at the job.
drivers

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Community

Promotion of education Health Environment Disaster management

Nanhi Kali Health initiatives ESG Project
(relief and rehabilitation)
To help girls complete schooling, Project Nanhi In the area of health, we organised nationwide As part of our commitment to environmental We demonstrated our responsiveness to natural
Kali provides girls (from Class 1-10) with blood donation drives in which 6,240 Blood sustainability, we have implemented several disasters by assisting in the reconstruction
comprehensive support, including two hours of Units were collected, conducted health check-up initiatives to conserve water and recharge and renovation of six government schools in
daily after-school remedial classes at Nanhi Kali camps, Swachh Bharat initiatives and donated groundwater. Maharashtra and Bihar that were affected by
Academic Support Centres. The girls also receive 12 ambulances that have enabled access to floods. 1000+ students will be benefitted from
these interventions. Additionally, we provided
10
an annual school supplies kit comprising a school primary healthcare centres, easy for several tribal
bag, stationery and feminine hygiene material, and rural patients across the nation. humanitarian aid in the form of dry ration and
enabling them to attend school with dignity. personal hygiene kits to 1,200 families affected
Rainwater harvesting by the floods in Assam. Through these efforts,
6,240+
To help improve learning outcomes, the project
structures (bore well recharge) in schools we aim to alleviate the hardships faced by the
provides every girl with access to personalised,
adaptive learning software. Over 14,000 flood-affected communities and contribute to
Blood units collected
underprivileged girl children from socially and
economically marginalised families living in urban, 5 2,450
their well-being.

Sanitation and hygiene project

rural, and tribal parts of India were supported in
FY2023. We, in collaboration with NGO partners, have been
Farm ponds created Individuals to be
benefited 1,200
actively involved in the Swachh Bharat Mission, a Families supported by providing dry ration and

14,000+
nationwide campaign initiated by the Government personal hygiene kits
of India to eliminate open defecation. Our flagship
project, the Sanitation and Hygiene Project,
Mahindra Hariyali
6 1,000+
Girls supported through
aims to address the issue of open defecation As a part of the Mahindra Hariyali project,
Project Nanhi Kali
in rural India, particularly in economically we planted more than 2,94,000+ saplings across
disadvantaged communities with limited access to India to continue our commitment to increasing Schools renovated Students to be benefitted
sanitation facilities. the green cover.

The project was implemented in the Nilgiri

districts of Tamil Nadu, where we constructed
Varied focus areas
115 individual household latrines, benefiting
approximately 550 individuals. The project not
Promoting sustainable CSR calendar initiatives
only improves the health and hygiene of the rehabilitation Mahindra Finance has always encouraged the
community but also contributes to environmental employees to participate in various CSR projects
sustainability by curbing the practice of open to drive positive changes in the community.
defecation and reducing pollution. With our Mahindra Finance successfully renovated During the reporting period, around 18,200
success in Nilgiri, we plan to replicate this and restructured three flood-affected employees (79% of total employees) contributed
initiative in other districts of Maharashtra and schools in Bihar's Rajapur, Sonbarsa, and 97,400 volunteering hours in various virtual
Tamil Nadu. Barsingha villages. The project improved and CSR calendar initiatives undertaken by the
infrastructure, flooring, electricity, and Company, like blood donation, tree plantation,
Swachh Bharat, projects with the municipal
115
furniture, creating a safe and conducive
learning environment. Additional provisions school, orphanages, old age homes, and centres
included clean-drinking water and record- for persons with disabilities to re-affirm its pledge
Household latrines
keeping almirahs. Through community to the society.
constructed in Nilgiri district
collaboration, a holistic approach, and a
focus on sustainability the initiative sets an
example for others. Valuable lessons were 97,400 18,200
learned in terms of collaboration, problem- Volunteering hours Employees
solving, sustainability, meeting urgent needs,
and scalability.
Need-based donations
Need-assessed donations to NGOs across
India with focus areas as the preservation and
promotion of the fine arts and culture, the
welfare of the armed forces, and supporting the
underprivileged community as mentioned under
Schedule VII.

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Suppliers and vendors

Material issues addressed Key risks considered SDGs impacted

Building sustainable Customer relationship Human capital risk

partnerships
management
Pandemic risk

Our supplier base consists of human resource service

providers, utility providers, technology partners, office
Our suppliers/vendors are an important part of As part of our continued engagement with suppliers
stationery suppliers, office infrastructure vendors and our operations. We believe in working with them and focus on quality and delivery time, our suppliers
service providers. to ensure our sustainability expectations are clear have improved their service levels. We also
and that products and services are compliant with encourage them to adopt sustainable practices,
our standards. appreciating and recognising good practices followed
by them.

Purchase from Top 10

MSME suppliers
(₹ in lakhs)

5,601.25
MMFSL

2,294.39
MRHFL

766.69
MIBL

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Environment

Material issues addressed Key risks considered SDGs impacted

Making responsible Climate strategy Climate risk

choices
(managing carbon emissions)

We are committed to sustainable value creation through

eco-friendly practices and optimal resource utilisation.
By reducing our environmental impact and fostering
behavioural change, we address material issues like climate Progress on sustainability roadmap – Environment
strategy and associated risks. Our efforts align with the FY2023
Goal statement Measure performance FY2021 target FY2022 target FY2023 target
SDGs, aiming to protect the environment, conserve resources, performance

combat climate change, and achieve sustainable economic Ensure continual Maintaining declining MMFSL – 0.77 MMFSL – 0.69 MMFSL – 0.63 0.69
reduction in trends in CO2 emissions
development. Together, we shape a better future. carbon emissions per employee MRHFL – 0.24 MRHFL – 0.22 MRHFL – 0.21 0.35
(tonnes of CO2eq per
MIBL – 0.65 MIBL – 0.59 MIBL – 0.53 1.20
employee)

Increase Increase the plantation 30,000 34,500 39,675 2,94,000+

plantation of with focus on survival
trees across India rate

Increase financing Financing M&M electric 41% 50% 50% 44%

of EVs vehicles Market share Market share Market share

Key pillars Key highlights

● Protecting the environment by preventing ● First NBFC in India to join the United
adverse impacts Nations Global Compact Network
● Improving and promoting the environmental ● Included in the FTSE4Good Emerging
sustainability of products and services Markets Index for 4th consecutive time
● Complying with legal obligations and ● Improved CDP rating level to “B”. Placed
voluntary commitments and promoting under the management category for
ambitious environmental management taking steps towards managing its carbon
practices emissions

Energy/emission reduction Energy conservation

● CFL lights were substituted with LED lights
initiatives across 1,137 branches
To effectively control and minimise our environmental
● Upgraded air conditioning systems and blade
impact, we have implemented various initiatives
servers to higher efficiency models; replaced
aimed at reducing emissions and conserving energy.
3-star fixed speed ACs with 5-star inverter split
ACs at 223 branches
24,22,601 kWh ● Efficient BLDC fans were installed at 19 branches
replacing conventional fans (74 in total)
Energy saved

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Environment

Water management Waste reduction

DG stack emission testing to Water is a vital element for the functioning of We make impactful efforts within our operational
our facilities and plays an irreplaceable role in the boundaries to facilitate proper waste segregation
ensure cleaner operations daily lives of our communities. Hence, it is crucial and resource conservation by minimising waste
to exercise careful management of this resource generation and maximising our positive influence.
to benefit our communities, operations, and the
During the year, we undertook DG stack emission testing at ten locations with the highest diesel well-being of future generations.
consumption. This testing aims to assess emissions such as nitrogen oxides, particulate matter, sulfur
Key initiatives:
dioxide, carbon monoxide, and other pollutants, ensuring that the emissions from DG sets comply ● Implementation of watershed management ● Achieved zero waste to landfill through paper
with the guidelines set down by the Central Pollution Control Board. In the upcoming fiscal year and rainwater harvesting projects in various recycling and exchanged paper waste for
2023-24, we plan to progressively expand the testing to include additional locations for managing its locations across India in collaboration wheat-based A4 Copier paper made from agro
carbon emissions with communities to execute the projects waste
effectively. ● Responsibly disposes of waste through
● Installation of aerators in office taps as part of authorised vendors, using paper waste as
the project initiatives. raw material for duplex and Kraft paper
production, thus eliminating landfill disposal

Total energy consumption (GJ) Energy intensity (GJ/employee) Total water consumption (KL) 59.5
E-waste recycled
tonnes
1,49,134 3.8
3,34,753
3.49
1,06,439
2.8 2,58,430
83,997

1,12,642

FY2021 FY2022 FY2023 FY2021 FY2022 FY2023

FY2021 FY2022 FY2023

Achieving zero-waste-to-
Total direct and indirect GHG emissions by weight landfill through paper recycling
Recognising the significant contribution of the
FY2021 FY2022 FY2023
Watershed development service sector to paper waste generation, we
GHG emissions GHG intensity GHG emissions GHG intensity GHG emissions GHG intensity
Scope 1 1,523.33 0.05 2,518.41 0.08 3,224.87 0.08 project undertook a comprehensive analysis of the
issue. In line with our commitment to circular
Scope 2 13,858.73 0.46 14,957.73 0.49 19,550.06 0.5
economy principles, we have initiated a zero-
Scope 3 13,051.28 0.44 1,809.81 0.06 18,813.81 0.48
An initiative by Mahindra Home Finance waste-to-landfill project specifically focused
to improve the livelihood of farmers on paper recycling. Through this project, we
in drought-prone areas by building ensure proper disposal of our paper waste by
and improving watershed structures. collaborating with authorised and registered
Through this project, we constructed new vendors who are in turn in collaboration with
watershed structures and renovated the the paper mill for recycling.
Growing green revenue existing ones to increase the groundwater
level. A total of 459 beneficiaries were Our zero waste-to-landfill loop begins by
We prioritise the financing of EVs as a supplying paper waste to authorised vendors
impacted by the project.
key component of our environmentally who utilise it as raw material for further paper
friendly product portfolio. This commitment production. To complete the loop, we source
is central to the development of our wheat-based A4 Copier paper made from
sustainability roadmap. During the year, agro-waste in exchange for our paper waste.
we successfully financed over 18,200 EVs, During the year, we successfully sent 17.5
contributing significantly to our sustainable tonnes of paper waste for recycling, marking
transportation initiatives. a significant step towards our zero-waste-to-
landfill goal.

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(Rupees in Crores unless indicated otherwise) Report

FY2014

25,400

31,19,034
31,666
4,953
1,370
24
1,346
887
190
113
4,982
5,094
12,816
893
15.75

15.60
Awards
FY2015

24,331

36,34,688
35,074
5,585
1,295
42
1,254
832
200
113
5,557
5,669
14,197
1,108
14.75

14.62
CSR Sustainability
FY2016

26,706

41,56,944
39,462
5,905
1,079
41
1,038
673
200
113
5,975
6,088
15,821
1,167
11.92

11.83
Received a special commendation for CSR Programme Became 1st NBFC in India to join the United Nations Global
‘Swabhimaan’ at the CSR Journal Excellence Awards Compact Network for taking steps towards responsible
business actions to create a better world for our
Recognised for persistent and innovative efforts in promoting future generations
CSR by The Institute of Company Secretaries of India during
FY2017

31,659

47,13,066
45,837
6,238
666
46
620
400
120
113
6,364
6,477
17,856
1,182
7.09

7.04
the 7th ICSI CSR Excellence Awards – 2023 Featured under the Leadership Index for performance
under ESG domain in the 2nd Edition of CRISIL
Awarded CSR Times Awards 2022 – Gold category for CSR Sustainability Yearbook
Initiatives under Swabhimaan in the area of skill development
at the 9 th National CSR Times Award 2022, New Delhi Improved CDP rating level to “B” and placed under
leadership category for taking steps towards managing its
FY2018

37,773

53,39,238
52,793
6,685
1,711
44
1,667
1,076
200
123
9,499
9,622
18,733
1,284
18.52

18.49
carbon emissions

Included in the renowned FTSE4 Good Emerging

Human Resources Markets Index series for ESG performance for the 4th
consecutive time
FY2019

46,210

61,00,619
67,078
8,810
2,443
60
2,382
1,557
325
123
10,785
10,908
21,789
1,321
25.33

25.28

Great Place to Work certified 2023 and Top 25 Great Place to

Work in BFSI 2023

Ranked 2nd in Financial Services Industry (Large Category)

by AmbitionBox Best Places to Work in India – Employee
Marketing
FY2020

42,388

68,58,082
74,071
10,245
1,462
118
1,344
906
0
123
11,241
11,364
21,862
1,322
10.09

10.08

Choice Award
*Figures from FY2018 onwards are as per Ind AS and for earlier financial years as per IGAAP.

Won Silver Award for Aapke Safar Ka Saathi testimonial video

Recognised as Happiest Workplace for Women at India Today – series at the RMAI Flame Awards Asia 2022
RPG Happiness at Workplace Summit & Awards – 2023
FY2021

25,249

73,11,675
77,036
10,517
548
126
422
335
40
246
14,465
14,712
19,952
1,388
3.03

3.02
FY2022

36,217

79,58,897
75,289
9,719
1,484
127
1,357
989
180
247
15,381
15,628
19,998
1,384
8.02

8.01
FY2023

62,526

90,11,096
96,217
11,056
2,885
187
2,698
1,984
300
247
16,842
17,089
26,329
1,386
16.09

16.08
Results: 10 Years at a Glance

16 Earnings Per Share - Diluted (₹)*

Profit before depreciation & tax*

15 Earnings Per Share - Basic (₹)*

13 No. of Employees Engaged
Estimated Value of Assets

(FV - ₹ 2/- per share)

(FV - ₹ 2/- per share)

10 Equity Share Capital*
11 Reserves & Surplus*
Profit before tax*
No. of Contracts

Profit after tax*

Total Income*

Depreciation*

14 No. of Offices
Total Assets*

Dividend %

12 Net Worth*
Particulars

Financed
No.
Sr.

2
3
4
5
6
7
8
9

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INDEPENDENT AA1000
Annexures

Assurance
ASSURANCE STATEMENT
Statement Independent AA 1000 Assurance
Statement

ASSURANCE STATEMENT ON Introduction and Objective of Work

BUREAU VERITAS (INDIA) PRIVATE LIMITED (hereinafter abbreviated as BVIPL) has been engaged by
INTEGRATED REPORT OF the MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED (hereinafter abbreviated “MMFSL”) to
provide an independent and limited assurance of its Integrated Report (hereinafter abbreviated as
“IR”) for the reporting period from 01.04.2022 to 31.03.2023 based on Global Reporting Initiative

Mahindra & Mahindra Financial (hereinafter abbreviated as GRI) Standards for Sustainability Reporting.

The onsite verification of the Sustainability practices adopted by MMFSL, at the respective Branch

Services Limited office, Regional office and Corporate Office and review of documents and disclosures were conducted
in March 2023 and April 2023 as a part of the sustainability assurance. On site assessments were
conducted for this assurance for MMFSL at three locations Maninagar Branch site, Ahmedabad (16th

for March 2023 for 0.5 assessment day), Ahmedabad RO site, Ahmedabad (16th March 2023 for 0.5
assessment day), Corporate office at Worli, Mumbai (19th April 2023 for 1 assessment day) and
Corporate office at Worli, Mumbai (26th April 2023 for 2 assessment days).

Reporting Period: The selection of reporting criteria, reporting period, reporting boundary, monitoring and
measurement of data, preparation, and presentation of information for the report are the sole
responsibility of the management of “MMFSL”. Bureau Veritas (BVIPL) was not involved in the drafting
or preparation of the back-up data of the said IR. The responsibility of BVIPL was to provide
independent assurance as described in the scope of assurance.

1st April 2022 – 31st March 2023 Intended User

The intended users of this assurance statement are the stakeholders of MMFSL. BVIPL disclaim any
liability or responsibility to a third party for decisions, whether investment or otherwise, based on this
Assurance Statement. We planned and performed our work to obtain the evidence we considered
necessary to provide a basis for our assurance opinion. The assurance engagement considers an
uncertainty of ±5% based on materiality threshold for estimation/measurement errors and omissions.
We did not engage with any external stakeholders as part of this assurance engagement.

Scope, Boundary and Limitations of assurance

Independent assurance has been provided for IR. The reporting boundary included data and
Bureau Veritas (India) Private Limited information for the period 01.04.2022 to 31.03.2023 for MMFSL, based on GRI standards.

72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ Gate #2, Andheri The assurance included verification of the sample data and information on selected material topics
(East) Mumbai-400 093 India. reported by MMFSL, at the aforesaid locations.

Page 1 of 6

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Independent AA 1000 Assurance Independent AA 1000 Assurance

Statement Statement
The Scope of Sustainability Assurance includes: and an evalua�on of the Report’s adherence to the “in accordance Core ” criteria of the GRI Standards
and verifica�on of standard disclosures indicated in the GRI Content Index in the Report.
 An assessment of the methods used for data collec�on and repor�ng for the selected
sustainability performance indicators.
Sample data were collected in order to support BVIPL conclusions on the verified informa�on and
 Tes�ng of such systems, including related internal controls. data. However, limited available informa�on and details is reviewed during the assurance of MMFSL.
 Tes�ng, on a sample basis, of evidence suppor�ng the data.
General Disclosures
 Verifica�on of the sample data and informa�on on selected material topics reported at
Regional and corporate Offices of MMFSL for the defined repor�ng period.  Organiza�onal Profile (102-1, 102-2, 102-4, 102-6, 102-8)
 Strategy (102-14)
 Assessment of the consistency between the data for the selected sustainability performance  Ethics and Integrity (102-16)
indicators and the related wri�en comments in the narra�ve of the Report
 Stakeholder Engagement (102-40,102-42)
 The Company's compliance to legal obliga�ons/disclosures  Repor�ng Prac�ce (102-46 to 102-52, 102-54, 102-55)

 The General and topic specific disclosures subject to assurance

Topic Specific Standard Disclosures
 Comple�on of assurance statement for inclusion in the report, which will reflect the Environment
verifica�on findings and conclusion. Gap assessment as per GRI standards, highlights of  Energy (2016) - 302-1, 302-2, 302-3
findings during verifica�on process of data and informa�on, dra� assurance statement,  Water and Effluents (2018) - 303-5
signed assurance statement as per GRI standards compliance
 Emissions (2016) - 305-1, 305-2, 305-31, 305-4
 Waste (2020) - 306-52
Repor�ng Criteria
The company has adopted below criteria for preparing the report: Social
 Global Repor�ng Ini�a�ve (GRI): in accordance with the core op�on  Employment (2016) - 401-1, 401-3
 Occupa�onal Health and Safety (2018) - 403-9
BVIPL scope has not considered the below data as a part of assurance :  Training and Educa�on- 404-1
 Diversity and Equal Opportunity - 405-1)
 Local Communi�es (2016) - 413-1
 Informa�on apart from the defined repor�ng period and boundary
 Compliance to any legal issue related to the authority except environmental and social
Conclusions
aspects.
Integrated report of MMFSL is reviewed based on the scope of the assurance. It is concluded that
 Any of the statement related to company aspect or reputa�on.
informa�on presented in MMFSL Integrated Report, in accordance with GRI standards framework, is
proper, adequate and maintained in line with the material topics considered for the repor�ng. The
Assurance Type and Scope report is found to be with a “Type 2 Moderate” level of assurance.

BVIPL has conducted sustainability assurance in accordance with the requirements of Account Ability’s
Responsibili�es
Assurance Standard (AA1000 AS v3 (Type 2, Moderate Assurance). Under this standard, BVIPL has
The assurance statement is made solely for “MMFSL” as per the governing contractual terms and
reviewed the informa�on presented in the report against the characteris�cs of relevance,
completeness, materiality, reliability, neutrality, and understandability. condi�ons of the assurance engagement contract between “MMFSL” and BVIPL. To the extent that

The scope of the assurance engagement, as agreed with MMFSL, included the review and verifica�on 1
Disclosure of data by MMFSL comprises of Business travel by road and air; purchased goods and services limited to paper
of sustainability policies, prac�ces, ini�a�ves and performance presented in the Report, an consumption; and employee commute
assessment of underlying management and repor�ng processes in accordance with the GRI Standards
2 Data comprises of E-Waste directed to disposal

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Independent AA 1000 Assurance Independent AA 1000 Assurance

Statement Statement
the law permits, BVIPL owe no responsibility and do not accept any liability to any other party other No member of the assurance team has a business relationship with “MMFSL”, its Directors, Managers
than “MMFSL” for the work BVIPL have performed for this assurance report or for BVIPL’s conclusions or officials beyond that required of this assignment. We have conducted this verification
stated. independently and there has been no conflict of interest.
The assurance team has extensive experience in conducting assurance over environmental, social,
BVIPL shall not be held liable or responsible for any type of decision a person or en�ty would make
ethical and health & safety information, systems and processes an excellent understanding of BVIPL
based on this assurance statement. While reading the assurance statement, stakeholders shall
recognize and accept the limita�on and scope as men�oned above. standard methodology for the assurance of Integrated Report.

Exclusions and Limita�ons For

Excluded from the scope of work is any assurance of informa�on rela�ng to: Bureau Veritas (India) Private Limited
 Ac�vi�es outside the defined assurance period stated hereinabove 72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ Gate #2,
 Posi�onal statements, expressions of opinion, belief, aim or future inten�on by “MMFSL” and Andheri (East) Mumbai-400 093 India.
statements of future commitment;
 The assurance does not extend to the ac�vi�es and opera�ons of “MMFSL” outside of the
scope and geographical boundaries men�oned in the Integrated report as well as the
opera�ons undertaken by any other en�ty that may be associated with or have a business
rela�onship with “MMFSL”.
 The assurance of the economic and financial performance data of MMFSL is based only on the
audited annual reports of MMFSL and our conclusions rely en�rely upon that audited report. Aanandkrishna Akilla
Lead Assurer
Limita�ons of the assessment work undertaken:
The limita�ons are provided by BVIPL, as observa�ons with ac�onable points and priority, to MMFSL
in a separate Management Le�er. These however do not affect our conclusion regarding the report.

Uncertainty
Sanjay Patankar
The reliability of assurance is subject to uncertainty (ies) that are inherent in the assurance process.
Technical Reviewer
Uncertain�es stem from limita�ons in quan�fica�on models used, assump�ons or data conversion
factors used or may be present in the es�ma�on of data used to arrive at results. The conclusions in
respect of this assurance are naturally subject to any inherent uncertainty (ies) involved in the
Date: 28/06/2023
assurance process.
Place: Mumbai, India
Statement of independence, impar�ality, and competence
BVIPL is an independent professional services company that specializes in Quality, Health, Safety, Report ID: V3-FB9JN
Social and Environmental management with almost 200 years history in providing independent
assurance services.
BVIPL has implemented a Code of Ethics across the business to maintain high ethical standards among
staff in their day-to-day business ac�vi�es. BVIPL is par�cularly vigilant in the preven�on of conflicts
of interest.

98 Empowering Emerging India INTEGRATED REPORT 2022-23 99

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GRI Content GRI Standard No.

GRI 204:
Disclosure

3-3 Management of material topics

Section
Location

Business Responsibility &

Page No.
240

Index
Procurement Sustainability Reporting
Practices 2016 206-1 Legal actions for anti-competitive behavior, anti-trust, Business Responsibility & 240
and monopoly practices Sustainability Reporting
Environmental Performance
GRI 302: Energy 3-3 Management of material topics Environment 89
Mahindra Finance has reported in accordance with the GRI Standards for the period between 1st April 2016 302-1 Energy consumption within the organisation Environment 90
Statement of Use
2022 to 31st March 2023. 302-2 Energy consumption outside of the organisation Environment 90
GRI 1 used GRI 1: Foundation 2021 302-3 Energy intensity Environment 90
Applicable GRI None 302-4 Reduction of energy consumption Environment 89
Sector Standard(s) GRI 303: Water and 3-3 Management of material topics Environment 91
Effluents 2018 303-5 Water consumption Environment 91
Location GRI 305: Emissions 3-3 Management of material topics Environment 89
GRI Standard No. Disclosure
Section Page No. 2016 305-1 Direct (Scope 1) GHG emissions Environment 90
GRI 2: General Disclosures 2021 305-2 Energy indirect (Scope 2) GHG emissions Environment 90
The organisation 2-1 Organisational details Who we are 8-9 305-3 Other indirect (Scope 3) GHG emissions Environment 90
and its reporting 2-2 Entities included in the organisation’s sustainability About the Report 2 305-4 GHG emissions intensity Environment 90
practices reporting GRI 306: Waste 3-3 Management of material topics Environment 91
2-3 Reporting period, frequency and contact point About the Report 2 2020 306-5 Waste directed to disposal Environment 91
2-4 Restatements of information None - Social Performance
2-5 External assurance About the Report 3 GRI 401: 3-3 Management of material topics People 76
Activities and 2-6 Activities, value chain and other business relationships Product Portfolio, Presence 10-13 Employment 2016 401-1 New employee hires and employee turnover People 79
workers 2-7 Employees People 78 401-3 Parental leave People 79
2-8 Workers who are not employees People 78 GRI 403: 3-3 Management of material topics People 77
Governance 2-9 Governance structure and composition Governance 47-48 Occupational 403-9 Work-related injuries People 77
2-15 Conflicts of interest Business Responsibility & 222 Health and Safety
2018
Sustainability Reporting
GRI 404: Training 3-3 Management of material topics People 75
2-17 Collective knowledge of the highest governance body Governance 48
and Education 404-1 Average hours of training per year per employee People 79
2-18 Evaluation of the performance of the highest Governance 49 2016
governance body
GRI 405: Diversity 3-3 Management of material topics People 73
Strategy, policies 2-22 Statement on sustainable development strategy Chairman's Message, Vice- 18-21 and Equal 405-1 Diversity of governance bodies and employees People 73
and practices chairman & MD's message Opportunity 2016
2-23 Policy commitments Governance 49 GRI 406: Non- 3-3 Management of material topics Business Responsibility & 232-234
2-24 Embedding policy commitments Governance 49 discrimination Sustainability Reporting
2-27 Compliance with laws and regulations Governance 50 2016 406-1 Incidents of discrimination and corrective actions Business Responsibility & 232
2-28 Membership associations Governance 47-48 taken Sustainability Reporting
Stakeholder 2-29 Approach to stakeholder engagement Stakeholder enagagement 34-35 GRI 408: Child 3-3 Management of material topics Business Responsibility & 232-234
engagement 2-30 Collective bargaining agreements As there are no trade - Labor 2016 Sustainability Reporting
unions, there is no collective 408-1 Operations and suppliers at significant risk for Business Responsibility & 232
bargaining agreements' incidents of child labor Sustainability Reporting
Material Topics GRI 409: Forced or 3-3 Management of material topics Business Responsibility & 232-234
GRI 3: Material 3-1 Process to determine material topics Materiality 36-39 Compulsory Labor Sustainability Reporting
Topics 2021 3-2 List of material topics Materiality 36-39 2016 409-1 Operations and suppliers at significant risk for Business Responsibility & 232
Economic incidents of forced or compulsory labor Sustainability Reporting
Performance GRI 413: Local 3-3 Management of material topics Community 81
GRI 201: Economic 3-3 Management of material topics Investor 65 Communities 2016 413-1 Operations with local community engagement, impact Community 82-85
Performance 2016 201-1 Direct economic value generated and distributed Investor 65 assessments, and development programs
GRI 203: Indirect 3-3 Management of material topics Community 81 GRI 417: Marketing 3-3 Management of material topics Customer 68-71
Economic Impacts 203-2 Significant indirect economic impacts Community 81 and Labeling 2016 417-1 Requirements for product and service information Customer 68-71
2016 and labeling
GRI 204: 3-3 Management of material topics Suppliers and Vendors 87 417-2 Incidents of non-compliance concerning product and The Company operates in a -
Procurement 204-1 Proportion of spending on local suppliers Suppliers and Vendors 87 service information and labeling highly regulated sector with
Practices 2016
strong systems, and no such
GRI 205: Anti- 3-3 Management of material topics Business Responsibility & 221-222
incidents were reported.
corruption 2016 Sustainability Reporting
417-3 Incidents of non-compliance concerning marketing The Company operates in a -
205-2 Communication and training about anti-corruption Business Responsibility & 221
communications highly regulated sector with
policies and procedures Sustainability Reporting
strong systems, and no such
205-3 Confirmed incidents of corruption and actions taken Business Responsibility & 221 incidents were reported.
Sustainability Reporting

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Sustainable Development Goals (SDGs) Mapping National Voluntary Guidelines (NVGs) Mapping and
UNGC principles
SDG mapping NVG mapping
Goal No Sustainable Development Goals Page No. NVG Principle Description Page No.
1 End poverty in all its forms everywhere 81 Principle 1 Ethics, Transparency and Accountability 46-61
2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture 81 Principle 2 Goods and Services which contribute to sustainability throughout the lifecycle 88-91
3 Ensure healthy lives and promote well-being for all at all ages 77, 81, 89 Principle 3 Employee wellbeing 77
4 Ensure inclusive and equitable quality education and promote life-long learning opportunities for 73, 81 Principle 4 Responsiveness towards all stakeholders, especially those who are marginalised and 30-31, 34-35
all disadvantaged
5 Achieve gender equality and empower all women and girls 73, 81 Principle 5 Respect and promote human rights 78
6 Ensure availability and sustainable management of water and sanitation for all 81, 91 Principle 6 Protect and restore environment 88-91
7 Ensure access to affordable, reliable, sustainable and modern energy for all 89 Principle 7 Influencing regulation and public policy 51
8 Promote sustained, inclusive and sustainable economic growth, full and productive employment 65, 69, 73 Principle 8 Inclusive growth and equitable development 80-85
and decent work for all Principle 9 Engagement and responsible value for customers and consumers 68-71
9 Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster 23, 69
innovation
10 Reduce inequality within and among countries 81, 87
UNGC principles
11 Make cities and human settlements inclusive, safe, resilient and sustainable 81, 89 No Category Description Page no.
12 Ensure sustainable consumption and production patterns 89
1 Human Rights Businesses should support and respect the protection of internationally proclaimed 78, 231
13 Take urgent action to combat climate change and its impacts 89 human
14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development - rights
15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage 40, 89 2 Human Rights Businesses should make sure that they are not complicit in human rights abuses 78, 231
forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 3 Labour Businesses should uphold the freedom of 231-234
16 Promote peaceful and inclusive societies for sustainable development, provide access to justice 47-61, 69-87 association and the effective recognition of the
for all and build effective, accountable and inclusive institutions at all levels right to collective bargaining
17 Strengthen the means of implementation and revitalise the global partnership for sustainable 81, 87, 89 4 Labour Businesses should uphold the elimination of all forms of forced and compulsory 231-234
development labour
5 Labour Businesses should uphold the effective abolition of child labour 231-234
6 Labour Businesses should uphold the elimination of discrimination in respect of employment 231-234
and
occupation
7 Environment Businesses should support a precautionary 88-91
approach to environmental challenges
8 Environment Businesses should undertake initiatives to 88-91
promote greater environmental responsibility
9 Environment Businesses should encourage the development and diffusion of environmentally 88-91
friendly technologies
10 Anti-corruption Businesses should work against corruption in 221-222
all its forms, including extortion and bribery

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Board’s The Assets Under Management (“AUM”) stood at The Company maintains sufficient liquidity buffer to
₹ 99,565 crores as at 31 st March 2023 as against fulfil its obligations arising out of issue of debentures.

Report
₹ 79,797 crores as at 31 st March 2022. The Company being an NBFC, is exempt from
transferring any amount to debenture redemption
Gross Stage 3 improved due to focused collection
reserve in respect of privately placed or public issue
initiatives and macro tailwinds. The Gross Stage 3 loan
of debentures, as per the provisions of Section 71 of
assets stood at ₹ 3,717 crores, lower than that on
Dear Shareholders, the Companies Act, 2013 read with Rule 18 of the
31 st March 2022 (₹ 4,976 crores). The Gross Stage
Companies (Share Capital and Debentures) Rules,
Your Directors are pleased to present their Thirty-third Report together with the audited financial statements 3% to Business Assets declined from 7.7% as at
2014. The Company in respect of secured listed
of your Company for the Financial Year ended 31 st March 2023 (“FY2023”). 31 st March 2022 to 4.5% as at 31 st March 2023.
non-convertible debt securities maintains 100%
security cover or higher security cover as per the
Financial Summary and Operational Highlights Material changes from the end of the financial year
terms of Information Memorandum and/or Debenture
till the date of this report
₹ in crores Trust Deed, sufficient to discharge the principal amount
No material changes and commitments have occurred and interest thereon.
Consolidated % Change Standalone % Change
Particulars after the closure of the FY2023 till the date of this
FY2023 FY2022 FY2023 FY2022
Report, which would affect the financial position of Dividend
Total Income 12,832.4 11,400.5 12.6 11,056.1 9,718.8 13.8 your Company.
Considering stellar performance and strong cash
Less : Finance Costs 5,094.3 4,417.4 4,576.7 3,920.2
flows, your Directors are pleased to recommend
Expenditure 4,695.6 5,347.3 3,539.6 4,314.9 ECL and other updates
a dividend of ₹ 6 per equity share (300%) on the
Depreciation, Amortisation and Impairment 226.0 152.0 187.2 126.8 The Company has updated the Expected Credit Loss face value of ₹ 2 each, for FY2023 vis- a- vis 180%
Total Expenses 10,015.9 9,916.7 1.0 8,303.5 8,361.9 (0.7) (“ECL”) model with the latest set of data at periodic dividend in FY2022. Dividend is subject to approval of
Profit before exceptional items and taxes 2,816.5 1,483.8 2,752.6 1,356.9 intervals for the year ended 31 st March 2023, to the Members at the ensuing Annual General Meeting
Share of profit of Associates & Joint Ventures 43.0 45.0 - - capture the significant changes in economic and and shall be subject to deduction of tax at source.
Exceptional items (56.1) 20.6 (54.5) -
market drivers, customer behaviours and government The dividend outgo for FY2023 will absorb a sum of
actions to reduce the risk of uncertainty due to ₹ 741.3 crores, which constitutes 37.35% pay out of
Profit Before Tax 2,803.8 1,549.4 81.0 2,698.1 1,356.9 98.8
judgements and estimations considering economic Company’s Standalone Profits for FY2023 and the
Less : Provision For Tax - - - -
outlook data as per government agencies around the same is within the ceilings specified in the Reserve
Current Tax 498.2 411.4 486.3 348.1 growth parameters. The Company also continues to Bank of India (“RBI”) guidelines on Declaration of
Deferred Tax 234.4 (12.3) 227.5 20.0 undertake risk assessment of its credit exposures Dividend by NBFCs dated 24th June 2021.
Profit After Tax for the Year 2,071.2 1,150.3 80.1 1,984.3 988.8 100.7 in addition to the model determined ECL provision,
Less : Profit for the year attributable to (1.2) 13.4 - - to reflect deterioration in the macroeconomic The Company has not paid any Interim Dividend during
Non-controlling interests outlook and uncertainty in credit evaluations. The the financial year under review.
Profit for the Year attributable to owners of 2,072.4 1,136.9 82.3 1,984.3 988.8 100.7 Company held provisions (expected credit loss on The dividend recommended is in accordance with
the Company financial assets) aggregating to ₹ 3,294.7 crores the Company’s Dividend Distribution Policy and in
Balance of profit brought forward from earlier 6,147.0 5,285.0 5,248.0 4,558.4 as on 31 st March 2023 (₹ 4,508.8 crores as on compliance with the framework prescribed in RBI
years 31 st March 2022). guidelines on Declaration of Dividend by NBFCs.
Add: Other Comprehensive income /(Loss) (13.3) (3.2) (12.9) (2.4)
The Company’s net Non-Performing Assets
Balance available for appropriation 8,206.1 6,418.7 7,219.4 5,544.8 Tax on Dividend
(“NPA”), net Stage-3 assets ratio stood at 1.9%
Less: Appropriations - - - - as at 31 st March 2023 as against 3.4% as at In terms of the provisions of the Income-tax Act,
Dividend paid on Equity Shares 443.9 98.6 444.8 98.8 31 st March 2022. 1961, the Company will make payment of dividend
Transfer to Statutory Reserves 398.1 223.6 398.0 198.0 after deduction of tax at source (“TDS”) as per the
Add/Less: Other Adjustments: Transfer to Reserves prescribed rates, to those shareholders whose name
Gross obligation at fair value to acquire 59.4 54.4 - - The Company proposes to transfer an amount appear as beneficial owner/ member in the list of
non-controlling interest of ₹ 398.1 crores to the Statutory Reserves, in beneficial owners to be furnished by National Securities
Changes in Group’s Interest (1.4) (3.9) - - compliance with Section 45-IC of the Reserve Bank of Depository Limited/ Central Depository Services
Balance carried forward to balance sheet 7,422.1 6,147.0 6,376.6 5,248.0 India Act, 1934. Further, the Board of your Company (India) Limited in case of shares held in dematerialised
Net worth 18,560.1 16,896.3 9.8 17,088.9 15,628.1 9.3 has decided not to transfer any amount to the form, or in the Register of Members in case of shares
General Reserve for the year under review. An amount held in physical form, as at the close of business hours
*Due to rounding off, numbers presented in above table may not add up precisely to the totals provided
of ₹ 6,376.6 crores is proposed to be retained in the on 21 st July 2023 (Book Closure).
Consolidated Performance Highlights Standalone Performance Highlights Profit and Loss Account of the Company. The Company has by email dated 17th May 2023,
Total Income for the year was ₹ 12,832.4 crores as During the year under review, the Company has informed the Members about the deduction of tax at
compared to ₹ 11,400.5 crores in FY2022. disbursed ₹ 49,541.4 crores as against ₹ 27,581.5 source on dividend. As it is imperative for the Company
crores during the previous year, an increase of to receive the relevant information and declarations
Revenue from operations for the year was
79.6% over the same period in previous year. from shareholders to determine the details of the
₹ 12,699.5 crores as compared to ₹ 11,317.6
crores in FY2022. Total Income was ₹ 11,056.1 crores for the year Considering stellar performance and TDS rates applicable to different categories of
shareholders, shareholders are requested to submit
Profit Before Tax (“PBT”) for the year was ₹ 2,803.8
ended 31 st March 2023 as compared to ₹ 9,718.8 strong cash flows, your Directors are the necessary documents as mentioned in the
crores as compared to ₹ 1,549.4 crores in FY2022.
crores for the previous year. pleased to recommend a dividend of aforesaid communication, on or before 10 th July 2023.
Profit After Tax (“PAT”) (Net of non-controlling
PBT grew by 98.8% at ₹ 2,698.1 crores as ₹ 6 per equity share (300%) on the The said communication is also uploaded on the website
interest) for the year was ₹ 2,072.4 crores as
compared to ₹ 1,356.9 crores for the previous year. face value of ₹ 2 each, for FY2023 of the Company at https://www.mahindrafinance.com/
compared to ₹ 1,136.9 crores in FY2022. PAT grew by 100.7% at ₹ 1,984.3 crores as vis-a-vis 180% dividend in FY2022. investors/disclosures-reg-46-62/investor-information.
compared to ₹ 988.8 crores in the previous year.

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Unclaimed dividend transferred to Investor be a vital financier to its customers in semi-urban and C. Leveraging Technology framework. Your Company regularly assesses
Education and Protection Fund rural areas. Your Company has retained its leadership As digitisation picks up pace, the Company’s digital risk, which involves implementing new technology,
In terms of the provisions of Sections 124 and 125 position in financing the Mahindra range of vehicles ambitions have grown multi-fold in the areas of keeping track of it and having external/internal
of the Companies Act, 2013 (“the Act”) read with the and tractors. Additionally, your Company is expanding improving business performance, better credit specialists audit the same. By implementing
Investor Education and Protection Fund Authority its connect with other leading Car Original Equipment underwriting, enhancing customer experience, manual and automated technologies, the risks
(Accounting, Audit, Transfer and Refund) Rules, Manufacturers (OEMs). developing customised products, rethinking discovered during the assessment are suitably
2016, during the year under review, the Company existing products. managed by mitigating, minimising, or transferring
has transferred an amount of ₹ 7,19,604 being the Building Blocks for Growth, Efficiency, Customer the risks. In accordance with the government’s
Experience The rollout of ‘QuickCheck’, an offer generation planned data privacy initiatives, we are adopting
unclaimed dividend of the Company for FY2015 to
engine for premium target base of customers data privacy practises.
the Investor Education and Protection Fund (“IEPF”). A. Deeper Physical Reach
booking Mahindra vehicles like Scorpio N, XUV
The details of total amount(s) lying in unpaid dividend Your Company has an extensive PAN-India 300/400/700 at dealership helps dealers and D. Data as Competitive Advantage
account of the Company for last seven years and distribution network with 1,386 offices spanning sales team of automotive vertical to pitch right
due to be transferred to IEPF, is mentioned in the across 27 States and 7 Union Territories as on Your Company has advantage when using analytics
offers from your Company to the premium base
Report on Corporate Governance, forming part of this 31 st March 2023. Due to its extensive office and artificial intelligence thanks to its operations
of customers on the fly at showroom itself. Also, it
Annual Report. network, your Company is less dependent on in the rural and semi-urban markets for more than
assists dealers and sales teams in the automotive
any one region in the Country. Additionally, some 25 years and dealing with a variety of profiles.
vertical in quickly and effectively presenting the
Dividend Distribution Policy regional, climatic, and cyclical dangers, such as Your Company has introduced its own algorithms
best offers from the Company to the premium
In compliance with the provisions of Regulation heavy monsoons or droughts, are lessened by to provide low-risk customers with quicker loan
client base in-store.
43A of the SEBI (Listing Obligations and Disclosure geographic diversification. The vast office network approvals at variable interest rates, which will
Requirements) Regulations, 2015, the Company of the Company also gains from a decentralised ‘OneApp’, an application to boost experience of aid in growing market share, enhancing portfolio
has formulated Dividend Distribution Policy, setting authorisation system, which enables each office field employees, has changed the digital posture quality and boosting profitability. The integrated
out criteria and circumstances to be considered to organically build its business and use its client of the way we did business earlier. Simultaneously, activation of Digital, Analytics and Technology
by the Board while recommending dividend to the connections by providing financial products like we continue to put a lot of effort on real-time will significantly improve customer acquisition,
shareholders. The Dividend Distribution Policy was vehicle financing, pre-owned car loans, housing digital utilities for KYC, NPA Stamping, and e-NACH retention, cross-selling and collections.
amended by the Board to inter-alia, incorporate the finance, SME financing, insurance broking, mutual while also strengthening our core through new
provisions pertaining to eligibility criteria, aspects fund distribution, fixed deposits etc. There are a partnerships for payment gateways, generating E. Growth Drivers for Future
to be considered by the Board while recommending few guardrails defined centrally to ensure asset digital leads, managing collections, cloud base The customer and competitive environment is
dividend, ceiling on dividend payout ratio etc. quality standards. Your Company believes that omnichannel customer experience etc. ever changing. A need was felt to recraft your
in accordance with the Reserve Bank of India its efficient office network in rural and semi- As part of our endeavour to communicate with our Company’s vision to help steer its growth over the
guidelines on declaration of dividend dated 24th urban areas has afforded an opportunity to customers across a variety of digital platforms, next few years. Therefore, the management with
June 2021. meet the financial needs of the people of India we have initiated set up of an end-to-end hyper approval of the Board has redefined the Vision
by identifying and comprehending their needs personalised marketing tech platform. for your Company which aims at positioning your
The revised Dividend Distribution Policy is appended
and aspirations. Company as “A leading and responsible financial
as “Annexure I” and forms part of this Annual Report. We have started several digital interventions at solutions partner of choice for emerging India”
The Dividend Distribution Policy can also be accessed B. Enhancing Digital Reach MMFSL, spanning all employee categories (field This new vision encompasses our commitment
on the Company’s website at the web-link: https:// force, support staff, office, remote staff, work from to service our customers in emerging India in a
As mobile technology continues to evolve, your
www.mahindrafinance.com//investors/disclosures- home employees), across all geographic regions, responsible manner and simultaneously achieve
Company has placed emphasis on implementation
reg-46-62/corporate-governance#MMFSL-policies as a part of our ongoing effort to improve our profitable growth. It further establishes our
of mobile app (“MF Customer app”) as a means
employee experience. commitment to be a provider of comprehensive
of providing cu stomer suppor t, fostering
Operations brand loyalty, raising customer retention rates, The Company also continues to expand the financial solutions, beyond lending. The phrase
Your Company’s main line of business is financing of inviting new customers and earning income. penetration of data sciences and artificial “partner of choice” holds significance as it reflects
automobiles and tractors for customers who use The MF Customer app provides customers with intelligence. The implementation of strategic our dedication to prioritising digital initiatives,
them mainly for earning their livelihood and for their a variety of services right at their fingertips, initiatives in business and collections has benefited enhancing customer experience and expanding
personal mobility. It also focusses on other businesses saving time and money as compared to visiting a greatly from the use of business intelligence our range of products.
like pre-owned car loans, housing finance, SME physical branch. The app, which is available in 11 dashboards and insights. In terms of business The Mission is to deliver a sustainable profitable
financing, insurance broking, mutual fund distribution, languages (including 9 Indian regional languages), lines and volumes, the use of Machine Learning growth characterised by continued growth
fixed deposits etc. Additionally, your Company is also enables customers to apply for car loans, access models in lending and retention has increased. including 2X Assets Under Management (“AUM”),
foraging into other areas like leasing, consumer finance and manage their loan accounts and make EMI stable asset quality (Gross Stage-3 assets < 4%),
Additionally, we regularly monitor risk minimisation
and loan against property. By offering a wide range of payments using a variety of payment methods, increased Return on Assets ~ 2.5% and improved
on the technology security front by using
easy and affordable products and services tailored to including debit cards, net banking, UPI, and wallets. operating leverage (Cost to Assets ~2.5%)
continuous risk management procedures that are
fit their cashflow cycles, your Company continues to In FY2023, the app users have increased by 22% by 2025.
compliant with ISO 27001:2013 and the COSO
from the previous year (8.8 lakh users in FY2023
as compared to 7.2 lakh users in FY2022). Your 
Your Company is concentrating on developing
Company has also offered mobile app to its its core products and expanding into new
dealer partners & dealer salesmen on PAN India growth areas. Financing of Pre-owned cars,
Your Company has retained its leadership basis. Your Company also launched specialised used tractors and commercial vehicles have
position in financing the Mahindra range end to end journey named ‘Used Car Digi Loans’ The Board has redefined the Vision for a lot of head room to grow within the vehicle
segments while increasing market share for
of vehicles and tractors. Additionally, in association with Car&Bike (by Mahindra First your Company which aims at positioning its existing range of products.
Choice Wheels) and Rupyy (by CarDekho) to
your Company is expanding its enable customers to get customised loan offers
your Company as “A leading and
Your Company will keep on further refining its
connect with other leading Car Original from your Company enabling them to take faster responsible financial solutions partner risk policy norms and underwriting to ensure that
Equipment Manufacturers (OEMs). buying decisions. of choice for emerging India” asset quality continues to stay top-class.

106 Empowering Emerging India INTEGRATED REPORT 2022-23 107

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Your Company plans to scale its non-vehicle an aggregate consideration of ₹ 206.39 crores, Finance private placement basis, in various tranches, including
lending portfolio which includes SME loans, on 21 st October 2022 subject to approval of During the year under review, Reserve Bank of India ₹ 380 crores (₹ 380 crores being the face value of
loan against property, personal loans, and other Insurance Regulatory and Development Authority (“RBI”) focussed on withdrawal of accommodation total amount raised) through Unsecured Redeemable
segments. These businesses have a promising of India (“IRDAI”). An application seeking approval to ensure that inflation progressively aligns with the Non-Convertible Subordinated Debentures eligible
future and the Company believes that the group has been filed with IRDAI on 25th November 2022. target, while supporting growth. Accordingly, RBI for Tier II Capital and ₹ 2.25 crores through Partly
strength positions us to participate in this Post receipt of approval from IRDAI, transfer of raised the REPO Rate by 250 bps to take the REPO paid-up NCDs. The NCDs are listed on the debt market
growth journey. shares and payment of consideration would be rate from 4% in April 2022 to 6.50% by March 2023. segment of BSE Limited.
effectuated. Once the acquisition is completed, Liquidity conditions remained tight throughout the
The Company’s Leasing and Subscription As specified in the respective offer documents, the
MIBL will become a wholly owned subsidiary of year with the banking sector liquidity falling from an
platform ‘Quiklyz’ which facilitates the customers funds raised from NCDs were utilised for various
your Company. estimated of over ₹ 7.50 lakh crore at the beginning
to access new cars without the hassle of car financing activities, onward lending, repaying the
ownership is helping to scale both the Corporate of the financial year to around ₹ 1 lakh crore at the existing indebtedness, working capital and for
Change in Nature of Business end of the financial year.
and Personal segments. It was launched initially general corporate purposes of the Company. Details
in the metro cities and has now scaled to 15 There has been no change in the nature of business of the end-use of funds were furnished to the Audit
Inflation in India also continued to be on a higher side
other locations. and operations of the Company during the year Committee on a quarterly basis.
throughout the year. After touching a high of 7.79% in
under review.
To summarise, your Company will focus on April 2022, Consumer Price Index (“CPI”) inflation has Your Company is in compliance with the applicable
continuing to strengthen its dominance as an auto moderated to 5.66% in March 2023 which is below guidelines issued by the RBI and Securities and
RBI Compliances
financier in emerging India, while also increasing the RBI’s upper threshold of 6%. Globally, inflation Exchange Board of India in this regard.
The Company has always endeavoured to maintain continued at elevated levels, with inflation in US, UK
the contribution of non-vehicle business to grow
the highest standards of compliance and culture and Euro Zone significantly higher than the target There has been no default in making payments of
its AUM from ₹ 65,000 crores in FY2022 to 2X
within the organisation and shall continue to do range for these economies. The rupee continued to principal and interest on all the NCDs issued by
by FY2025.
so going ahead. The Company continues to comply weaken against the US Dollar throughout the year, in the Company on a private placement basis and
For more information on the performance of with all the applicable laws, regulations, guidelines the wake of high probability of global recession. The through public issue. As on 31 st March 2023, there
the Company, risk management framework etc. prescribed by the Reserve Bank of India (“RBI”), rupee fell from ₹ 75.72/$ to low of over ₹ 83/$ before is no unpaid/unclaimed interest on NCDs issued on
and initiatives please refer to Management from time to time. The Company continues to be closing back at around the ₹ 82/$ mark. a private placement basis. With respect to the three
Discussion and Analysis section forming part of in compliance with the norms pertaining to capital public issuances of NCDs made by the Company,
this Annual Report. adequacy, non- performing assets etc. Your Company In line with the domestic macro indicators i.e. high Principal payment of ₹ 10,93,000/- and Interest of
continues to invest in talent, systems and processes inflation, weakening rupee, higher credit growth vis- ₹ 48,96,963/- is unclaimed by the investors as on
Other Developments to further strengthen the control, compliance, a-vis deposit growth and unfavourable global macro- 31 st March 2023.
risk management and governance standards in indicators i.e. higher interest rates, high inflation
Amendment to Memorandum of Association
the organisation. and a high probability of recession in the developed Commercial Paper
In order to ensure that the Company’s ongoing economies like US, UK and Euro Zone, the interest rates
activities and emerging opportunities in the As at 31 st March 2023, the Company had Commercial
Scale Based Regulations in India also continued to rise throughout the year. The
financial services space for furtherance of the Paper (“CPs”) with an outstanding amount (face value)
1 Year and 2 Year G Sec curve moved from 4.81% and
Company’s main objects and activities connected The Scale Based Regulations (“SBR”) were notified of ₹ 4,075 crores. CPs constituted approximately
5.49% in April 2022, to 7.18% and 7.10% respectively
thereto in context of its present business are by the Reserve Bank of India ("RBI") vide its circular 5.4% of the outstanding borrowings as at 31 st March
in March 2023 along with the movement in REPO Rate.
explicitly mentioned and are within the sphere of dated 22nd October 2021, effective from 1 st October 2023. The CPs of the Company are listed on the debt
During the year Interest cost on borrowed funds for
Memorandum of Association (“MOA”) and to ensure 2022. Pursuant to the Scale Based Regulations, market segment of the National Stock Exchange of
the company increased from 6.68% as of 31st March
cohesiveness and comprehensiveness of the MOA, the RBI has classified your Company as NBFC in India Limited.
2022 to 7.53% as of 31st March 2023.
the Board of Directors have subject to approval of the Upper Layer (“UL”). Your Company has ensured full
shareholders of the Company, approved amendment compliance with various requirements prescribed During the year under review, your Company Borrowings
to a sub-clause in the “Matters which are necessary under SBR for NBFC-UL within the specified continued with its diverse methods of sourcing In order to expand the business of the Company and
for furtherance of the objects specified in Clause III timelines including adopting policy for enhanced funds in addition to regular borrowings through to cater the enhanced budgeted disbursements, the
(A) of MOA”. regulatory framework, Internal Capital Adequacy Secured and Unsecured Debentures, Term Loans, Board of Directors of the Company, have subject to
Assessment Process Policy (ICAAP), complying with External Commercial Borrowings, Securitisation, the approval of the shareholders of the Company
Buy out of stake in Mahindra Insurance Brokers Ltd, large exposure norms, setting limits for sensitive Fixed Deposits, Commercial Papers, Inter to be obtained at the ensuing 33rd Annual General
subsidiary of the Company sector exposure etc. Corporate Deposit etc. and maintained prudential Meeting, increased the overall borrowing limit from
Asset Liability match throughout the year. ₹ 90,000 crores to ₹ 1,10,000 crores.
Your Company currently holds 80% of the paid-
Chief Compliance Officer Your Company sourced long-term debentures
up equity share capital of Mahindra Insurance
In compliance with SBR, the Board has appointed a and loans from banks and other institutions at
Brokers Ltd (“MIBL”) and the remaining 20% is held
Chief Compliance Officer to oversee the compliances attractive rates. Your Company continues to
by Inclusion Resources Private Limited (“IRPL”).
as applicable to the Company. The Board has also expand its borrowing prof ile by tapping new
Pursuant to the approval of the Board and in
adopted Compliance Policy in compliance with SBR lenders and geographies.
accordance with the agreement between the two
shareholders (i.e., Company & IRPL), your Company effective 28th March 2023. Your Company is concentrating on
Securitisation
has entered into agreement to purchase 20% stake developing its core products and
Internal Ombudsman During the year, your Company successfully completed
in MIBL, subsidiary of the Company, from IRPL at
four securitisation transactions aggregating to
expanding into new growth areas.
Your Company has appointed an Internal Ombudsman
(“IO”) in compliance with the RBI Circular dated 15th ₹ 3954.85 crores. Financing of Pre-owned cars, used
November 2021. A Report of number of complaints tractors and commercial vehicles have
escalated to IO and status of disposal of such Non-Convertible Debentures a lot of head room to grow within the
complaints during the period under review is being During the year under review, your Company raised vehicle segments while increasing
Pursuant to the Scale Based placed before the Board for its review in compliance Secured/Unsecured Redeemable Non-Convertible
market share for its existing range
Regulations, the RBI has classified your with the aforesaid RBI circular. Debentures (“NCDs”) of ₹ 7,508.61 crores (₹ 9,804.70
of products.
crores being the face value of total amount raised) on a
Company as NBFC in Upper Layer

108 Empowering Emerging India INTEGRATED REPORT 2022-23 109

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Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

The Company had an aggregate outstanding borrowings of ₹ 74,945.86 crores as on 31 st March 2023 as Management Discussion and Analysis During these meetings/ earnings calls, the interactions
shown hereunder: In accordance with the applicable provisions of the are based on generally available information accessible
Master Direction issued by the Reserve Bank of to the public in a non-discriminatory manner. No
Others (Inter India and the SEBI (Listing Obligations and Disclosure unpublished price-sensitive information is shared
Non Corporate External during such meetings. Your Company believes in
Particulars Deposits Bank Loans Convertible
Subordinate Short Term
Deposit/ Commercial Total Requirements) Regulations, 2015, a detailed analysis
Securities
Debt Borrowing
Commercial Borrowing of the Company’s performance is discussed in the transparent communication and have been voluntarily
Papers etc.) Management Discussion and Analysis Report, which disclosing critical information regarding Company’s
₹ in crores 5524.60 36920.73 20809.06 3442.13 675.00 5023.63 2550.71 74945.86 forms part of this Annual Report. performance through monthly updates.
% to total 7.4% 49.2% 27.8% 4.6% 0.9% 6.7% 3.4% 100%
Borrowing Corporate Governance Silent period
Your Company practices a culture that is built on As a good governance practice, your Company
Credit Rating Economy core values and ethical governance practices. Your voluntarily observes a ‘Silent / Quiet period’ starting
Company is committed to Integrity and transparency from 1 st day of the start of the month after the
CRISIL Limited upgraded your Company’s long term Global Economy
in all its dealings and places high emphasis on business end of the quarter for which the financial results
credit rating to CRISIL AAA/Stable w.e.f. 6th January Global Economy remains resilient and appears to
ethics. The Board of your Company exercises its are to be announced till the time of announcement
2023. With this upgrade, your Company enjoys highest be in a position wherein gradual recovery with the
fiduciary responsibilities in the widest sense of term and of said results. During this period, no interactions
rating for its long term and short term borrowing blow of Russia–Ukraine war is underway. Supply chain
endeavours to enhance long-term shareholder value. with investors/ analysts/funds are held to discuss
programmes from all the credit rating agencies that disruptions which has led to shortage in availability
The Governance framework is anchored by the clearly unpublished financial performance of the Company
it works with. Your Company believes that its credit of products are unwinding. Inflation which has been
defined policies and procedures covering areas such to ensure protection of the Company’s Unpublished
ratings and strong brand equity enables it to borrow a cause of continuous concern seems to now be
anti- bribery and anti-corruption, Prevention of Sexual Price Sensitive Information (“UPSI”).
funds at competitive rates. The Company has been retracing back. Growth looks to rebound in 2024
assigned highest credit rating on all its instruments Harassment at Workplace and Whistle Blower Policy.
after the bottoming out in 2023. However, there Consolidated Financial Statements
by leading rating agencies. The details of ratings are seems to be turbulence beneath the surface with A Report on Corporate Governance along with
given in the Corporate Governance Report, forming The Consolidated Financial Statements of your
inflation continuing to be stickier than anticipated, a Certificate from M/s. Makarand M. Joshi & Co.
part of this Annual Report. Company, its subsidiaries, associate/joint venture for
sharp effect of policy tightening after a long cycle of certifying compliance with the conditions of
FY2023, prepared in accordance with the relevant
benign interest rates resulting in sizable markdowns Corporate Governance as stipulated in Regulations
Capital Adequacy provisions of the Companies Act, 2013 (“the Act”) and
on long term fixed rate investments. Further, turmoil 17 to 27, clauses (b) to (i) and (t) of sub-regulation
applicable Indian Accounting Standards along with all
As on 31 st March 2023, the Capital to Risk Assets in the banking system in some advanced economies (2) of Regulation 46 and Para C, D and E of Schedule
relevant documents and the Auditors’ Report form
Ratio (“CRAR”) of your Company was 22.5% which is have triggered risk aversion, flight to safety and V of the Securities and Exchange Board of India
part of this Annual Report.
well above the minimum requirement of 15% CRAR heightened volatility. The state of financial health (Listing Obligations and Disclosure Requirements)
prescribed by the Reserve Bank of India. of the system shall depend on the ability of policy Regulations, 2015 forms part of this Annual Report. Pursuant to the provisions of Section 136 of the
makers to take swift actions by building greater Act, the Standalone and Consolidated Financial
Out of the above, Tier I capital adequacy ratio stood
oversight. In contrast, the pace of growth in emerging Investor Relations Statements of the Company, along with relevant
at 19.9% and Tier II capital adequacy ratio stood at
markets and developing nations are even stronger During the current year, your Company has met documents and financial statement of each of the
2.6% respectively.
with growth being visible at 4.5% (in the fourth multiple investors and analysts–both domestic subsidiaries of the Company are available on the
quarter of the current year) compared to 2.8% (in and international. These sessions were undertaken website of the Company and can be accessed at the
Share Capital
the fourth quarter of 2022). through a mix of one-on-one or group meetings. web-link: https://www.mahindrafinance.com/investors/
The issued, subscribed and paid-up Equity Share disclosures-reg-46-62/financial-information
Your Company also participated in multiple domestic
Capital as on 31 st March 2023 was ₹ 247.1 crores, Domestic Economy conferences organised by reputed broking houses,
consisting of 123,55,29,920 Equity Shares of the face Subsidiaries, Joint Venture(s) and Associate(s)
Economic activity remained resilient in the last in addition to accessing overseas investors through
value of ₹ 2 each, fully paid-up.
quarter of FY2023. A strong Rabi production, Non-Deal Roadshows ("NDRs"). Having meetings in A report on the performance and financial position
There was no change in the issued, subscribed and expansion in industrial production and growth in virtual format (through conference calls and video- of each of the Company’s subsidiaries, associate/
paid-up share capital during the year under review. core industries all indicates positive growth in the conferencing) enabled accessing a larger investor joint venture is included in the Consolidated Financial
agricultural and industrial activity. The inflation base. Your Company holds quarterly and annual Statements and the salient features of their
As on 31 st March 2023, none of the Directors of
trajectory for FY2024 would be shaped by both earnings calls through structured conference financial statements and their contribution to overall
the Company hold instruments convertible into
domestic and global factors. Global financial market calls and/or weblinks, details of which are made performance of the Company as required under
equity shares of the Company. ESOPs granted to the
volatility has surged, with potential upsides for available to public through the Company’s website Section 129(3) of the Companies Act, 2013 (“the
Vice Chairman and Managing Director of the Company
imported inflation risks. The expectation of a good and stock exchange(s). Act”) read with Rule 8(1) of The Companies (Accounts)
under the Company’s Employee Stock Option Scheme
rabi crop should strengthen rural demand, while the Rules, 2014, is provided in Form AOC-1, annexed as
would vest as per the applicable vesting schedule.
sustained buoyancy in contact-intensive services ‘Annexure A’ to the Consolidated Financial Statements
should support urban demand. Government’s thrust and forms part of this Annual Report.
on capital expenditure continues and continuing
strong capacity utilisation in manufacturing, double Material Subsidiary
digit credit growth and the moderation in commodity
Your Company voluntarily observes
Regulation 16 of the SEBI (Listing Obligations and
prices are expected to bolster manufacturing and a ‘Silent / Quiet period’ starting from
CRISIL Limited upgraded your investment activity. The external demand drag could 1st day of the start of the month after
Disclosure Requirements) Regulations, 2015 (“the
Listing Regulations”) defines a “material subsidiary” to
Company’s long term credit rating to accentuate, given slowing global trade and output. the end of the quarter for which the mean a subsidiary, whose income or net worth exceeds
CRISIL AAA/Stable. With this upgrade, Protracted geopolitical tensions, tight global financial
financial results are to be announced till ten percent of the consolidated income or net worth
your Company enjoys highest rating for conditions and global financial market volatility
the time of announcement of said results. respectively, of the listed entity and its subsidiaries in
pose risks to the outlook. Taking all these factors
its long term and short term borrowing into consideration, real GDP growth for 2023-24 During this period, no interactions are
the immediately preceding accounting year.
programmes from all the credit is projected at 6.5% with Q1:2023-24 being the held with investors/ analysts/funds Accordingly, Mahindra Rural Housing Finance Limited
rating agencies it is associated with. highest at 7.8%.
to protect Company's UPSI.
is a material, debt listed subsidiary, of your Company.

110 Empowering Emerging India INTEGRATED REPORT 2022-23 111

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Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Operational and performance highlights of the of the Mutual Fund. The Average Assets Under The foundation has obtained Registration under Your Company has rolled out several initiatives aimed
Company’s Subsidiary, Joint venture/Associate Management in these 20 schemes were ₹ 9,691 Section 12AA and Section 80G of the Income Tax Act, at offering a superior experience to fixed deposit
Companies for FY2023 are given hereunder: crores as on 31 st March 2023 as compared to ₹ 8,839 1961 and CSR Registration Number. holders. Some key ones include :
crores as on 31 st March 2022, delivering a growth
Mahindra Rural Housing Finance Limited
of 9.6% in assets. Of these assets, ₹ 8,294 crores Joint Venture/Associate • An integrated web portal has been developed to
Mahindra Rural Housing Finance Limited (“MRHFL”), were in equity and hybrid schemes in March 2023, as facilitate online application/ online renewal of Fixed
Mahindra Finance USA LLC [“MFUSA”]
the Company’s subsidiary, engaged in the business compared to ₹ 5,911 crores in March 2022, a growth Deposits, Loan against FDs, profile updates, etc.
of providing loans for purchase, renovation and MFUSA’s retail and dealer disbursement registered
of 40%. MMIMPL has empanelled 23,983 distributors • Online submission of Forms 15G/15H by all eligible
construction of houses to individuals in the rural a decrease of 3.9% to USD 877.2 million for the
and now has 5,77,009 investor accounts in these Depositors through the FD Customer portal is
and semi-urban areas of the country, registered a year ended 31 st March 2023 as compared to
20 schemes. made available on the Company’s website.
total income of ₹ 1,349.8 crores as compared to USD 912.8 million for the previous year.
₹ 1,377.5 crores for the previous year, decline of During the year under review, the total income • TDS cer tif icate(s) are made avail able on the
Total Income increased by 13% to USD 62 million
2% over previous financial year. Profit Before Tax of MMIMPL was ₹ 44.1 crores as compared to Customer portal and Broker portal, in addition to
for the year ended 31 st March 2023 as compared to
was 54.4% lower at ₹ 26.3 crores as compared to ₹ 35.3 crores for the previous year. The operations for the same being sent to the concerned Depositors,
USD 54.9 million for the previous year. Profit before
₹ 57.7 crores for the previous year. Profit After Tax the year under consideration have resulted in a loss of from time to time.
tax was 15% lower at USD 19.8 million as compared
was 54.5% lower at ₹ 21.7 crores as compared to ₹ 30.9 crores as against a loss of ₹ 38.1 crores during • In order to of fer variou s payment options to
to USD 23.2 million for the previous year. Profit after
₹ 47.7 crores in the previous year. the previous year. Depositors, more payment gateways have been
tax declined by 14% to USD 15 million as compared
to USD 17.4 million in the previous year. added across various FD investment portals.
During the year under review, MRHFL disbursed Mahindra Manulife Trustee Private Limited
loans aggregating to ₹ 2,004 crores as against • An advanced version of Customer Relationship
Mahindra Manulife Trustee Private Limited (”MMTPL”) Changes in Subsidiaries, Joint Venture or Associate Management (“CRM”) has been launched to record
₹ 1,602 crores in the previous year.
acts as the Trustee to Mahindra Manulife Mutual Fund Companies during the year the queries, requests and complaints for future
MRHFL continued its focus on serving customers (“Mutual Fund”). data analysis in order to enhance customer service.
During the year under review, there were no changes
in rural India. Majority of the loans disbursed were An integrated service portal (E-Sarathi) has been
During the year, MMTPL earned trusteeship fees in the Company’s Subsidiaries, Joint Venture/
to the customers in villages with an average annual introduced to address the queries of Depositors
of ₹ 73.8 lakhs and other income of ₹ 7.3 lakhs as Associate Companies.
household income of less than ₹ 3 lakhs. During the routed through the Channel Partners on real-time
compared to ₹ 72.6 lakhs and ₹ 3.5 lakhs, respectively,
year under review, MRHFL disbursed home loans to basis during working hours.
for the previous year. MMTPL recorded a profit of Fixed Deposits and Loans/Advances
more than 59,000 households. MRHFL is expanding
₹ 16.1 lakhs for the year under review compared to a Your Company offers a wide range of Fixed Deposit • The process of recording of Central Know Your
its reach to provide affordable housing loans in its
profit of ₹ 22.8 lakhs in the previous year. schemes that cater to the investment needs of various Customer (“CKYC”) details of the Depositors has
chosen geographies.
classes of investors. These Deposits carry attractive been strengthened by introducing various control
Mahindra Ideal Finance Limited (Sri Lanka) interest rates with superior service enabled by robust measures.
Mahindra Insurance Brokers Limited
Your Company holds 58.2% stake in Mahindra Ideal processes and technology. In order to tap rural and • Separate categorisation of VIP cu stomers to
During the year under review, Mahindra Insurance
Finance Ltd (Sri Lanka) {“MIFL”} with a total investment semi-urban savings, your Company continues to address the queries with a dedicated Relationship
Brokers Limited (“MIBL”), subsidiary of the Company
of ₹ 77.97 crores. Leveraging on the Mahindra expand its network and make its presence felt in the Manager is introduced.
engaged in the business of Direct and Re-insurance
Finance’s expertise of over 26 years in the financial most remote areas of the country.
Broking, serviced approximately 2.9 million insurance
services sector and the local management’s expertise As at 31 st March 2023, 4,883 Deposits amounting to
cases, for both Life and Non-Life Retail business. During the year, CRISIL has reaffirmed a rating
of the domestic market MIFL is poised to build a ₹ 4.9 crores had matured for payment and remained
The customised Group Credit Term Life increased of ‘CRISIL AAA/Stable’ for your Company’s Fixed
leading financial services business in Sri Lanka. unclaimed. The unclaimed Deposits have since
from 5,02,508 lives covered with a Sum Assured of Deposits. Additionally, Company’s Fixed Deposit
reduced to 4,678 Deposits amounting to ₹ 4.5 crores.
₹ 19,519 crores in FY2022 to 6,03,542 lives covered During the year under review, Sri Lanka went through program also has AAA rating from India Ratings.
There has been no default in repayment of deposits or
with a Sum Assured of ₹ 25, 577 crores in FY2023. unprecedented political and economic crisis which This rating indicates that the degree of safety
payment of interest during the year.
A substantial portion of Group Credit Term Life triggered an acute shortage of foreign exchange. regarding timely payment of interest and principal
continues to be covered in the rural markets. Despite challenging circumstances, MIFL registered a is very strong. Your Company’s Deposits continue Your Company being a Non-Banking Financial Company
growth in top line as well as has remained profitable. to be a preferred investment avenue amongst the disclosures required as per Rule 8(5)(v) and (vi)
There is growth of 46% in Gross Premium facilitated
During the year under review, MIFL registered a total the investors. of the Companies (Accounts) Rules, 2014 read with
for the Corporate and Retail business lines, increasing
income of LKR 1,924 million as compared to LKR Sections 73 and 74 of the Companies Act, 2013, are
from ₹ 2,768.1 crores in FY2022 to ₹ 4,036.8 crores As on 31 st March 2023, your Company has mobilised
1,322 million for the previous year, registering a not applicable to it.
in FY2023. The Total Income increased by 23% from funds from Fixed Deposits to the tune of ₹ 5,541.8
growth of 46%. Profit Before Tax was 51% lower at
₹ 348 crores in FY2022 to ₹ 426.5 crores in the crores, with an investor base of over 92,880 investors. The information pursuant to Clause 35(1) of Master
LKR 153 million as compared to LKR 310 million for
FY2023. The Profit Before Tax decreased by 35% Direction DNBR.PD.002/03.10.119/2016-17 dated
the previous year. Profit After Tax was 64% lower at Your Company continues to serve the investors by
from ₹ 70.4 crores to ₹ 46.1 crores and the Profit 25th August 2016 issued by the Reserve Bank of
LKR 87 million as compared to LKR 239 million in the introducing several customer centric measures on
After Tax decreased by 34% from ₹ 51.9 crores to India on Non-Banking Financial Companies Acceptance
previous year. an ongoing basis to further strengthen its processes
₹ 34.4 crores during the same period. of Public Deposits (Reserve Bank) Directions, 2016
in sync with the requirements of the Fixed Deposit
With 7 new branches opened during the year, the ("NBFC Regulations"), regarding unpaid/unclaimed public
MIBL has been able to extend the benefit of insurance (“FD”) holders. Your Company periodically sends
Company increased its footprint to 27 locations in the deposits as on 31st March 2023, is furnished below:
to over 4 lakh villages across India. various intimations via SMS, e-mails, post, courier etc.,
island nation.
to its investors as well as sends reminder emails to i. Total number of accounts of Public Deposits of
Mahindra Manulife Investment Management clients whose TDS is likely to be deducted before any the Company which have not been claimed by the
Mahindra Finance CSR Foundation
Private Limited pay-out/accrual. Your Company also provides a digital depositors after the date on which the deposit
Mahindra Finance CSR Foundation was incorporated platform for online application/renewal of deposits, became due for repayment: 4,883
Mahindra Manulife Investment Management Private
on 2nd April 2019 as a wholly-owned subsidiary of online generation of TDS certificates from customer/
Limited (“MMIMPL”) acts as an Investment Manager ii. Total amounts due under such accounts remaining
Mahindra Finance registered under Section 8 of broker portal and seamless investment process for
for the schemes of Mahindra Manulife Mutual Fund unclaimed beyond the dates referred to in clause
the Act, to promote and support CSR projects and its employees.
(“Mutual Fund”). As on 31 st March 2023, MMIMPL was (i) as aforesaid: ₹ 4.9 crores
activities of the Company and its group Companies.
acting as the investment manager to 20 schemes

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Initiatives taken to reduce the unclaimed amounts V of the SEBI (Listing Obligations and Disclosure • Recognised as Happiest Workplace for Women at have subject to the approval of the shareholders,
pertaining to Fixed Deposits : Requirements) Regulations, 2015 is not applicable to India Today – RPG Happiness at Workplace Summit approved a new Restricted Stock Unit Plan namely
1. Penny drop testing one month prior to maturity the Company. & Awards – 2023. ‘Mahindra and Mahindra Financial Services Limited-
and interest pay out process is being conducted Restricted Stock Unit Plan 2023’ (“MMFSL RSU
to reduce rejection cases. Particulars of Loans, Guarantees or Investments Employee Stock Option Scheme and Restricted Plan-2023”), contemplating grant of 59,44,320
in Securities Stock Unit Plan - 2023 Restricted Stock Units (“RSUs”) exercisable into
2. Deposit holders are being reached out via SMS/ equivalent equity shares, constituting 0.48% of the
Your Company, being an NBFC registered with RBI and Employee Stock Options are recognised as an
Calls/ Email/Physical letters, as applicable. paid-up share capital of the Company as on 31 st
engaged in the business of giving loans in ordinary effective instrument to attract and retain talent
3. In case of death of depositors, claim settlement course of its business, is exempt from complying with and align the interest of employees with that of March 2023.
process is advised to joint depositors/nominee/ the provisions of Section 186 of the Companies Act, the Company, thereby providing an opportunity to Necessary resolutions seeking members approval
legal heir, as the case may be; 2013 (“the Act”) with respect to loans. the employees to participate in the growth of the for the MMFSL RSU Plan-2023 and related matters
Company and to create long-term wealth in the are incorporated in the Notice convening 33rd Annual
4. Unclaimed FDs are being validated with the Pursuant to the provisions of Section 186(4) of the
hands of employees. General Meeting of the Company.
depositor’s Loan account with the Company , Act, details with regard to the investments made by
if any. the Company, as applicable, are given in Note no.51(iv) During the year under review, no options were granted
of the Standalone financial statements, forming part to the eligible employees under the Mahindra & Sustainability Initiatives
5. In case the cheque is undelivered, the Company
of this Annual Report. Mahindra Financial Services Limited Employees’ Stock In line with the Mahindra Group’s motto: ‘Rise for
deposits the amount in the bank account of the
Option Scheme–2010 (“2010 Scheme”). The Company Good’, your Company is gearing up to be future ready
customer, after necessary confirmations.
Achievements does not have any scheme to fund its employees to by making “Sustainability” as an integral part of the
Awards/Recognitions received by your Company purchase the shares of the Company. business strategy and risk framework. Sustainability
Transfer of Unpaid Amount(s) to IEPF:
during the year are enumerated hereunder: has been a part of organisation’s philosophy since its
Pursuant to Section 125 of the Companies Act, 2013 The 2010 Scheme of the Company is in compliance
establishment. Your Company’s growth story mirrors
read with the Investor Education and Protection Fund CSR with the Securities and Exchange Board of India
the story of India’s transformation and its vision for
Authority (Accounting, Audit, Transfer and Refund) • R
 eceived a special commendation for CSR Program (Share Based Employee Benefits and Sweat Equity)
financial inclusion. It is with this purpose that the
Rules, 2016 (“the IEPF Rules”) as amended from time ‘Swabhimaan’ at the C SR Journal E xcellence Regulations, 2021 (“SBEBSE Regulations”) and
company works with and extends its services to the
to time, matured Deposits remaining unclaimed for Awards. there were no amendments to the Scheme during
communities in rural areas with the aim to change
a period of seven years from the date they became FY2023. A Certificate from M/s. Makarand M. Joshi &
• R
 ecognised for persistent & innovative efforts their lives. At Mahindra Finance, Sustainability is
due for payment are required to be transferred to Co., Secretarial Auditor of the Company for FY2023,
in promoting CSR by The Institute of Company imbibed in its business philosophy and is seen as part
the Investor Education and Protection Fund ("IEPF") certifying that the Company’s above-mentioned
Secret aries of India during the 7 t h IC SI C SR of its intrinsic DNA. Your Company’s focus on rural
established by the Central Government. Further, Scheme has been implemented in accordance with the
Excellence Awards – 2023. customers and its constant endeavour is enabling
interest accrued on the deposits which remain SBEBSE Regulations and the resolution passed by the
• A
 warded CSR Times Awards 2022 – Gold category them to Rise by empowering people and creating
unclaimed for a period of seven years from the date Members, would be made available for inspection by
for CSR Initiatives under Swabhimaan in the area shared value for all. Your Company’s approach and
of payment are also required to be transferred to the the Members through electronic mode at the Annual
of skill development at the 9 th National CSR Times accomplishments on Sustainability echoes its mission
IEPF under Section 125(2)(k). General Meeting (“AGM”) scheduled to be held on
Award 2022, New Delhi. of transforming rural lives and contributing to people,
28th July 2023.
During the year, the Company has transferred to the planet and profit. Your Company is constantly making
IPEF an amount of ₹ 0.08 crores being the unclaimed Sustainability The applicable disclosures as stipulated under SBEBSE a positive impact on the society in areas of health,
amount of matured fixed deposits and ₹ 0.05 crores Regulations for the year ended 31 st March 2023, education, environment, skill enhancement, rural
• Became 1 st
NBFC in India to join the United Nations
towards unclaimed/unpaid interest accrued on the with regards to the 2010 Scheme and Company’s development and technology incubation.
Global Compact Network for taking steps towards
Deposits. The concerned depositor can claim the stock option trust is uploaded on the Company’s
responsible business actions to create a better Your Company and its subsidiaries have been enabling
Deposit and/or interest from the IEPF by following the website and can be accessed at the web-link: https://
world for our future generation. customers to meet their aspirations through a
procedure laid down in the IEPF Rules. www.mahindraf inance.com/investors/disclosures-
• Featured under the Leadership Index for diversified portfolio of financial product offerings.
reg-46-62/financial-information
performance under ESG domain in the 2nd Edition Mahindra Rural Housing Finance Limited helps people
Loans and Advances Considering limited number of options in the 2010 build their homes through affordable housing finance
of CRISIL Sustainability Yearbook.
During the year under review, the Company has not scheme and with a view to continue the practice solutions. Mahindra Insurance Brokers Limited
• Improved CDP rating level to “B” and placed under
given any loans and advances in the nature of loans of rewarding performance of the employees, secures their life and assets with insurance solutions
leadership categor y for taking steps towards
to its subsidiaries or associate or loans and advances creating ownership culture and to retain, motivate and Mahindra Manulife Investment Management
managing its carbon emissions.
in the nature of loans to firms/companies in which and attract talents in light of growing business Private Limited offers investment options through
Directors are interested. • Included in the renowned FTSE4 Good Emerging and to align interests of shareholders with that of its asset management solutions. Your Company
Markets Index series for ESG Performance for the employees, the Board of Directors of your Company, lays strong emphasis on customer centricity with
Accordingly, the disclosure of particulars of loans/ 4th Consecutive time. a customer base spread across different villages in
advances, etc., as required to be furnished in the Annual
India, with majority of them belonging to the ‘Earn
Accounts of the Company pursuant to Regulation Marketing and Pay’ segment.
34[3] and 53[f] read with paragraph A of Schedule
• Won Silver Award for Aapke Safar K a Saathi
Your Company commenced its journey towards
testimonial video series at the RMAI Flame Awards
Asia 2022. To continue the practice of rewarding reporting Sustainability performance in the year
2008-09 through Mahindra Group’s Sustainability
performance of the employees, Report. In FY2013 the Company released its first
Company became 1st NBFC in India to
Human Resources creating ownership culture and to Independent Sustainability Report with the theme
join the United Nations Global Compact
• Great Place to work certified 2023 & Top 25 Great retain, motivate and attract talents, “Forward focus to transform lives”. In FY2021, the
Place to Work in BFSI 2023.
Network for taking steps towards the Board of Directors of your Company released its first Integrated Report
• Ranked 2 nd in Financial Services Industry (Large with the theme “Care above Everything else”.
responsible business actions to create a Category) by AmbitionBox Best Places to Work in
Company, have subject to the approval The Integrated Report represented facts during
better world for our future generation. India – Employee Choice Award. of the shareholders, approved a new the pandemic, proactive steps taken to support our
Restricted Stock Unit Plan. stakeholders and navigate the challenging period

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together for a resilient society. The Report adheres Your Company was recognised for its Sustainability 1. CSR Committee Your Company launched innovative Financial
to the Global Reporting Initiative’s (“GRI”) Standards, initiatives with the accolades as stated in The Company has duly constituted a CSR Literacy Campaign “Money Gyaan Se Jeevan
UN SDG’s and is based on the Integrated Reporting Achievements section. Committee in accordance with Section 135 of Aasaan” with the objective to create awareness
framework (“IIRC”). the Companies Act, 2013 to assist the Board about EMI Fraud Prevention, Government SME
Your Company made proactive efforts to reduce
and the Company in fulfilling the corporate and MSME schemes and Responsible borrowing
Your Company continued to focus on integrating CO2 emissions (carbon footprint) through Project
social responsibility objectives of the Company. under the theme “Money Kathayein”. This Public
Sustainability into its business practices across valued “Mahindra Hariyali” by planting 2,94,000+ saplings
The Committee presently comprises of the awareness campaign targeted to masses across
stakeholders through key initiatives. throughout the country.
following Directors: rural and urban communities educating on basic
As a service sector, the major waste contributor is financial behaviours. Around 85 million views were
Business Responsibility and Sustainability Report
paper. Promoting a circular economy strategy for Name Category garnered through this digital campaign.
In compliance with Regulation 34(2)(f) of the SEBI its disposal, your Company launched a zero waste
(Listing Obligations and Disclosure Requirements) Mr. Dhananjay Mungale Independent Director
to landfill project thereby ensuring to send paper (Chairperson) Women Empowerment Projects
Regulations, 2015, as applicable, the Company’s 1 st waste to paper mills for recycling purpose only
Ms. Rama Bijapurkar Independent Director Reaffirming its commitment to the cause
Business Responsibility and Sustainability Report for through authorised organisations and in exchange
Mr. Ramesh Iyer Executive Director
of education, your Company continued its
the year ended 31 st March 2023, forms part of this receiving wheat straw based copier paper for further support to the Nanhi Kali Program which has
Annual Report. consumption. This initiative ensures circular economy During the year under review, 3 (three) CSR benefitted over 14,000+ underprivileged
The Board of Directors have adopted a new policy viz. and promotion of sustainable consumption in business. Committee Meetings were held, details of which girl children from socially and economically
‘Business Responsibility and Sustainability Reporting Your Company’s inclusive sustainable business are provided in the Corporate Governance marginalised families living in urban, rural, and
Policy’ (“BRSR Policy”), which inter-alia, incorporates model is future ready and well equipped to enable its Report. The CSR Committee inter-alia, reviews tribal parts of India.
sustainability elements and aligns the Policy with stakeholders progress. and monitors the CSR as well as BRSR activities.
With the aim of helping girls complete schooling,
National Guidelines on Responsible Business Conduct
Through the inclusive business model, your Company Project Nanhi Kali provides girls (from Class 1-10)
(“NGRBC”). 2. CSR Policy
endeavours to cater to the bottom of the pyramid with comprehensive support including two hours
The CSR Policy approved by the Board of daily after-school remedial classes at Nanhi Kali
Business Responsibility and Sustainability Report in the rural and semi-urban areas, enabling them to
encompasses the approach and guidance Academic Support Centres. The girls also receive
-Training and Initiatives earn their livelihood through varied financial products
given by the Board taking into account the an annual school supplies kit comprising a school
and services. Through a wide network of branches, we
Your Company outreached it’s stewardship as a recommendations of the CSR Committee, bag, stationery and feminine hygiene material,
are promoting local employment and building strong
ESG leader and conducted its first ever Business including principles for management of the enabling them to attend school with dignity. To
lasting relationships with our stakeholders.
Responsibility and Sustainability Reporting training CSR Project(s)/Program(s) and formulation of help improve learning outcomes, the project
for value chain partners, by emphasising on the best Your Company has always been conscious of its role the Annual Action Plan. The CSR Policy of the provides every girl with access to personalised,
practices and case studies of its 9 principles based as a responsible corporate citizen and is building Company was amended to align the same with adaptive learning software.
on NGRBC. The integrated and empowering approach an inclusive organisation by empowering all the regulatory provisions pertaining to CSR.
towards the stakeholders provides a visibility of stakeholders and facilitating their contribution Further your Company continued Mahindra
The CSR Policy has been hosted on the website Pride Classroom program to reach out to
ESG practices across the value chain and enables towards growth that is both holistic and long term.
of the Company at: https://www.mahindrafinance. marginalised and socially excluded women to
the Company to form its sustainability strategy. This Through its wide network of branches with locally
com//investors/disclosures-reg-46-62/corporate- create job opportunities in various sectors and
future oriented outlook of aligning the stakeholders recruited employees, strong and lasting relationships
governance#MMFSL-policies enable women to become financially independent
with our ESG goals will play a considerable role in with its stakeholders, large customer base, vast
achieving the companies ESG targets. experience and market knowledge, your Company is and participate actively in the workforce. Under
3. CSR Initiatives this program, we conducted 40 hours training
providing financial resources to underserviced regions
Sensitising the employees to a novel concept such ‘Swabhimaan’- CSR Flagship program: for 62,900+ final year female students in
of the Country.
as Sustainability has been one of the key initiatives classrooms across government/government
The Company had launched CSR flagship program
of the Company during the year. Capacity building aided colleges, polytechnics, industrial training
Integrated Reporting for Drivers Community in FY2021 (Project
on Sustainability has been driven through employee institutions, employer premises etc. to enhance
Your Company is pleased to present its holistic “Swabhimaan” or “Self- Respect”), which is aimed
engagement Initiatives. During the year, your Company their employability prospects in the emerging
performance for FY2023, in the Integrated Report at upliftment of drivers and their family members.
launched a training module on Business Responsibility areas like Science, Technology, Engineering and
and Sustainability Report (“BRSR”). of the Company. This report includes details such as In FY2023, to further solidify our commitment Mathematics ("STEM"), digital marketing, coding,
the organisation’s strategy, governance framework, towards the well-being of the driver communities,
Initiatives like “Green Gifting”, “I Am Responsible” digital & financial literacy, new educator and
performance and prospects of value creation based on your Company successfully implemented its
activities launched to promote ESG culture and regenerative agriculture which are in high demand
the six capitals- Financial, Manufactured, Intellectual, flagship program–‘Swabhimaan’. This multi-year
sustainable consumption practices in employees will in today’s job market.
Human, Social & Relationship and Natural capital. program’s focus has been to address the
enable sustainable behavioral changes & knowledge Your Company launched pilot projects on Women
professional, financial, and familial challenges
development as a core value of the Company. Corporate Social Responsibility (CSR) Economic Empowerment Skill Development with
faced by the drivers and their families and
With a vision to transform rural and semi-urban further contribute to their overall well-being. In an aim to enable women to join the workforce
India into a self-reliant, flourishing landscape, your FY2023, we reached out to over 1,62,400+ and make them economically empowered. Your
Company started its journey in 1991 and has grown beneficiaries across India. Through the Company trained 2,500+ women as Sewing
into a leading NBFC with an employee base of around Swabhimaan program, your Company provided Machine Operator, General Duty Assistant,
26,058 employees all over India. By working with 4 wheeler vehicle driving training to 3,100+ Data Entry Operators, Call centre/PO related
Company outreached it’s stewardship around 50 NGOs and implementing partners in the freshers, road safety training to 7,850+ existing skills training.
as a ESG leader and conducted its areas of Education & Livelihood, Healthcare and drivers, auto mechanic training to 2,300+ youth,
first ever Business Responsibility and Environment, your Company strives to become an conducted financial & digital literacy sessions Environmental Sustainability Projects
Sustainability Reporting training for asset in the communities where it operates. Your for 1,42,000+ drivers and awarded scholarships To continue with its commitment to increase the
Company’s Corporate Social Responsibility (CSR) to 7,000+ children of drivers. Through above green cover, as a part of the Mahindra Hariyali
value chain partners, by emphasising on initiatives are aligned with the Company’s purpose to interventions, your company impacted lives of project, your Company, planted more than
the best practices and case studies of drive positive change in the lives of our communities 12,200+ women beneficiaries. 2,94,000+ saplings across India. As a part of
its 9 principles based on NGRBC. and aligned with national priorities.

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the Environmental Sustainability, your Company and culture, welfare of the armed forces and on the Company’s website and can be accessed at the During the year under review, 6 Audit Committee
constructed 10 rainwater harvesting structures supporting underprivileged community. web-link: https://www.mahindrafinance.com/investors/ Meetings were held. Further, the terms of reference of
(bore well recharge) in the schools to provide disclosures-reg-46-62/financial-information/ the Audit Committee were enhanced during the year
water and created 5 farm ponds to provide water 4. CSR Spend under review, to align it with statutory amendments
to the farmers throughout the year. Through As per the provisions of Section 135 of the Board & its Committees notified under SEBI (Listing Obligations and Disclosure
this intervention, 3.50 lakhs Litres of water Companies Act, 2013 (“the Act”) read with the Board Requirements) (Sixth Amendment) Regulations, 2022.
potential is expected to get created. This project Companies (Corporate Social Responsibility Your Company recognises and embraces the All the recommendations of the Audit Committee
is expected to support 2,450 beneficiaries from Policy) Rules, 2014 (“CSR Rules”), the mandatory importance of a diverse Board in its success. The were duly approved and accepted by the Board during
the rural areas of Maharashtra. CSR spend of the Company for FY2023 was confluence of Directors on the Board with different the year under review.
₹ 37.13 crores, against which the Company knowledge and skills, perspective, regional and
Disaster Management (Relief and Rehabilitation) has spent ₹ 37.22 crores during FY2023. Your industry experience, cultural and geographical Meetings and Postal Ballot
Your Company being responsive to its approach Company is in compliance with the statutory background ensures that your Company retains its The Board of Directors met 7 times during the year
towards natural cal amities, suppor ted requirements in this regard. competitive advantage. The Board Diversity Policy, under review i.e. on 2nd May 2022, 28th July 2022,
reconstruction and renovation of 6 flood affected as a part of Policy on Appointment of Directors
Further, in terms of the CSR Rules, Chief Financial 26th September 2022, 4th October 2022, 2nd November
government schools from Maharashtra and Bihar and Senior Management and succession planning
Officer has certified that the funds disbursed have 2022, 3rd February 2023 and 16th March 2023, as
through which 1,000+ students will be benefited. for orderly succession to the Board and the Senior
been utilised for the purpose and in the manner against the statutory requirement of at least four
Your Company also distributed Dry Ration and Management w.e.f. 25th November 2022 sets out the
approved by the Board for FY2023. meetings. The requisite quorum was present for all
Personal Hygiene Kits to 1,200+ flood affected Board’s approach to diversity. the Board Meetings. The maximum time gap between
families in Assam as humanitarian aid.
5. Annual Report on CSR Activities As on 31 st March 2023, the Board of your any two Meetings was not more than one hundred
The Annual Report on the CSR activities Company consisted of 10 Directors comprising of and twenty days. These Meetings were well attended.
Health
undertaken by your Company during the year a Non-Executive Chairman, 1 Executive Director, The 32nd AGM of the Company was held on 28th July
In the area of healthcare, your Company organised 2022 through Video Conference.
under review, as prescribed in the Companies 2 Non-Executive Non-Independent Directors
nationwide blood donation drives in which 6,240
(Corporate Social Responsibility Policy) Rules, and 6 Independent Directors, of whom 2 are During the year under review, no Extraordinary
Blood Units were collected, health check-up
2014, as amended, is set out in “Annexure II” of Women Directors. General Meeting (“EGM”) of the Members was held.
camps were conducted. Your Company undertook
this Report.
Swachh Bharat initiatives and donated 12 During the year under review, basis recommendation
Committees constituted by the Board of Directors
ambulances that have enabled access to primary of the Nomination and Remuneration Committee
6. Impact Assessment of CSR Projects Your Company has various Committees which
healthcare centers, easy for several tribal and and the Board of Directors, members by way of
rural patients across the nation. The Company has been conducting internal impact have been constituted as a part of good corporate
special resolution passed through postal ballot
assessments to monitor and evaluate its strategic governance practices and the same are in compliance
on 30 th December 2022, appointed Mr. Diwakar
Skill development for Persons with Disabilities CSR programs. In compliance with the provisions with the requirements of the relevant provisions of
Gupta as an Independent Director to hold office for
of Section 135 of the Companies Act 2013 read applicable laws and statutes.
Your Company continued its support to Persons 1 st term of 5 consecutive years commencing from
with sub-rule (3) of rule 8 of the Companies
with Disabilities by training 250+ beneficiaries The details of the Board Committees along with their 1 st January 2023 to 31 st December 2027 (both
(Corporate Social Responsibility Policy) Rules,
under ‘Hunnar’ program in various skills in composition, powers, terms of reference, etc. are days inclusive).
2014, impact assessment was required to be
Banking and Financial Services and Insurance given in the Report on Corporate Governance, which
carried out for the following projects Detailed information on the Meetings of the Board,
("BFSI"), hospitality and Information Technology forms part of this Annual Report.
its Committees, Postal Ballot and the AGM is included
Enabled Services ("ITES") sectors to enhance 1. COVID 19 Relief Project
in the Report on Corporate Governance, which forms
their employability. Audit Committee
2. Swabhimaan part of this Annual Report.
Your Company has always encouraged the As on 31 st March 2023, the Audit Committee
3. Mahindra Pride School comprised of 5 Independent Directors and 1 Non- A calendar of all the meetings is prepared and
employees to participate in various CSR Projects
Executive Non-Independent Director: circulated in advance to the Directors.
to drive positive changes amongst the community. 4. Nanhi Kali
During the reporting period, around 18,200
5. Women Economic Empowerment Name Category Meetings of Independent Directors
employees (79% of total employees) contributed
97,400 volunteering hours in various virtual and CSR The Company has engaged independent agencies Mr. C. B. Bhave Chairman of the Committee The Independent Directors met twice during the
Calendar initiatives undertaken by the Company to carry out the impact assessment for the (Independent Director) year under review, on 8 th September 2022 and
like blood donation, tree plantation, Swachh Bharat, aforesaid projects. Of the abovementioned Mr. Dhananjay Mungale Independent Director 16th March 2023. The Meetings were conducted
visit to municipal school, visit to Orphanages, Old projects, impact assessment has been completed Ms. Rama Bijapurkar Independent Director
in an informal manner without presence of
age Homes & centres for Differently Abled to re- for COVID-19 relief project and Swabhimaan. the Whole-time Director(s), the Non-Executive
Mr. Milind Sarwate Independent Director
affirm its pledge to the society. Non-Independent Directors, Chief Financial Officer
The Executive Summary for Impact Assessment Mr. Amit Kumar Sinha Non-Executive Non- or any other Management Personnel to enable
Apart from the key thrust areas, your Company Reports of COVID-19 relief project and Independent Director
the Independent Directors to discuss matters
contributed funds for other causes such as Swabhimaan, is annexed with ‘Annexure II’ of Mr. Diwakar Gupta Independent Director pertaining to, inter alia, review of performance of
preservation and promotion of the fine arts this Report and the complete Impact Assessment Non-Independent Directors and the Board as a
Reports of the applicable projects can be accessed Changes in Audit Committee Members: whole, review the performance of the Chairman
at the web-link: https://www.mahindrafinance. • Dr. Anish Shah ceased to be a Member of the of the Company (taking into account the views
com/rise-for-good/csr-reports Committee w.e.f. 2nd May 2022. of the Executive and Non-Executive Directors),
• Mr. Amit Kumar Sinha was appointed as the Member assess the quality, quantity and timeliness of flow
The Company spent ₹ 37.22 crores Annual Return of information between the Company Management
of the Committee w.e.f. 2nd May 2022.
on the CSR activities during FY2023, Pursuant to Section 134(3)(a) and Section 92(3) of
• Mr. Diwakar Gupta was appointed as the Member of
and the Board that is necessary for the Board to
the Companies Act, 2013 read with rule 12(1) of the effectively and reasonably perform their duties.
against the mandatory obligation of Companies (Management and Administration) Rules,
the Committee w.e.f. 3rd February 2023.
₹ 37.13 crores. 2014, the Annual Return in Form No. MGT-7, is available

118 Empowering Emerging India INTEGRATED REPORT 2022-23 119

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Directors and Key Managerial Personnel Cessation of Directors Declaration by Independent Directors Directors’ Responsibility Statement
Appointment/Re-appointment of Directors during  r. Amit Raje (DIN: 06809197) Whole-time Director,
M  ll the Independent Directors of the Company have
A Pursuant to the provisions of Section 134(5) of the
FY2023 and upto the date of this report designated as Chief Operating Officer Digital Finance given their declarations and confirmation that they Companies Act, 2013, (“the Act”) your Directors,
- Digital Business Unit was liable to retire at the 32nd fulfil the criteria of Independence as prescribed based on the representations received from the
• Appointment of Mr. Raul Rebello as the Executive AGM of the Company held on 28th July 2022 and under Section 149(6) of the Companies Act, 2013 Operating Management and after due enquiry,
Director was eligible for re-appointment. However, Mr. Raje did ("the Act") and Regulation 16(1)(b) of the Listing confirm that:
Pursuant to succession planning approved not seek re-appointment due to pre-occupation and Regulations and have also confirmed that they are not
i. In the preparation of the annual accounts for
by Nomination and Remuneration consequently ceased to be Whole-time Director and aware of any circumstance or situation, which exist
financial year ended 31 st March 2023, the
Committee("NRC") and as recommended by Key Managerial Personnel of the Company w.e.f. 28th or may be reasonably anticipated, that could impair
applicable accounting standards have been
NRC, Mr. Raul Rebello has been appointed by July 2022. or impact their ability to discharge their duties with
followed and there are no material departures in
the Board of Directors, subject to the approval an objective independent judgment and without any
 uring the year under review, no Independent Director
D adoption of these standards.
of the shareholders, as the Whole-time external influence.
of the Company resigned before the expiry of his/
Director and KMP designated as ‘Executive ii. They have in consultation with the Statutory
her tenure.  urther, the Board after taking these declarations/
F
Director and MD & CEO-designate’ w.e.f. 1 st Auditors selected such accounting policies and
disclosures on record and acknowledging the veracity
May 2023 to 29 th April 2024 (both days applied them consistently and made judgments
Retirement by Rotation of the same, concluded that the Independent Directors
inclusive) and as the Managing Director of the and estimates that are reasonable and prudent
In terms of provisions of Section 152 of the Companies holds highest standards of integrity and possess the
Company designated as ‘Managing Director & so as to give a true and fair view of the state of
Act, 2013, Mr. Amit Kumar Sinha Non-Executive and relevant proficiency, expertise and experience to
CEO’ w.e.f. 30 th April 2024 to 30 th April 2028 affairs of the Company as at 31 st March 2023 and
Non Independent Director, is liable to retire at the 33rd qualify and continue as Independent Directors of the
(both days inclusive). of the profit of the Company for the year ended
AGM of the Company scheduled to be held on 28th Company and are Independent of the Management of
on that date.
Mr. Raul Rebello will assume the office of the July 2023 and is eligible for re-appointment. the Company.
Managing Director effective 30 th April 2024, after iii. They have taken proper and sufficient care for
 owever, he does not seek re-appointment as a
H In terms of Section 150 of the Companies Act, 2013
superannuation of Mr. Ramesh Iyer, Vice-Chairman the maintenance of adequate accounting records
Director due to his transition to a new role in Mahindra read with Rule 6 of the Companies (Appointment
and Managing Director of the Company on 29 th in accordance with the provisions of the Act
Group i.e. he has been appointed as the Managing and Qualification of Directors) Rules, 2014, as
April 2024. for safeguarding the assets of the Company
Director and CEO of Mahindra Lifespace Developers amended, Independent Directors of the Company
and for preventing and detecting fraud and
The approval of the shareholders for appointment Limited w.e.f. 23rd May 2023 and accordingly he would have confirmed that they have registered themselves
other irregularities.
of Mr. Raul Rebello as mentioned above would be cease to hold office as a Director of the Company at with the databank maintained by The Indian Institute
obtained at the ensuing 33rd AGM of the Company. the close of the ensuing AGM, scheduled to be held on of Corporate Affairs, Manesar (‘IICA’) and the said iv. They have prepared the annual accounts for
Necessary resolutions(s) seeking approval of the 28th July 2023. The Board has taken note of the same registration is renewed and active. financial year ended 31 st March 2023 on a going
members are incorporated in the Notice of the and resolved not to fill the vacancy so caused. concern basis.
 e Independent Directors of the Company except
Th
33rd Annual General Meeting of the Company.
Dr. Rebecca Nugent, are exempt from the requirement v. They have laid down adequate internal financial
Re-appointment of Independent Director to undertake the online proficiency self-assessment controls to be followed by the Company and that
• Appointment of Mr. Diwakar Gupta as an Independent
The 1 st term of Mr. Milind Sarwate, Independent test conducted by IICA. Dr. Rebecca Nugent has such internal financial controls were operating
Director of the Company
Director of the Company expires on 31 st March 2024. cleared the online proficiency self- assessment test in effectively during the financial year ended
Pursuant to the recommendation of NRC and the Basis the performance evaluation report, business January 2023. 31 st March 2023.
Board of Directors of the Company, the members knowledge, skills sets, experience and substantial
of the Company have by means of a Special vi. They have devised proper systems to ensure
contribution made by Mr. Sarwate during his 1 st term Key Managerial Personnel
Resolution passed on 30 th December 2022 compliance with provisions of all applicable
and basis recommendation of the Nomination and The following persons were designated as the Key
vide Postal Ballot approved the appointment laws and that such systems were adequate and
Remuneration Committee, the Board of Directors Managerial Personnel ("KMP") of the Company
of Mr. Diwakar Gupta (DIN: 01274552) as an operating effectively during the financial year
of the Company have subject to the approval of pursuant to Sections 2(51) and 203 of the Companies
Independent Director w.e.f. 1 st January 2023 for ended 31 st March 2023.
the members of the Company, approved the re- Act, 2013 read with the Companies (Appointment and
a period of five consecutive years, not liable to appointment of Mr. Milind Sarwate (DIN: 00109854) Remuneration of Managerial Personnel) Rules, 2014, Performance Evaluation of the Board
retire by rotation. In the opinion of the Board, as an Independent Director on the Board of the as on 31 st March 2023:
Mr. Diwakar Gupta holds high standards of Company, for a second term of 5 consecutive years The Companies Act, 2013 (“the Act”) and the SEBI
integrity, expertise and experience. w.e.f. 1 st April 2024. The necessary resolution seeking 1. Mr. Ramesh Iyer, Vice-Chairman & (Listing Obligations and Disclosure Requirements)
approval of the members of the Company has been Managing Director Regulations, 2015 (“the Listing Regulations”)
He is exempted from the requirement to undertake
incorporated in the Notice of 33rd Annual General stipulate the evaluation of the performance of the
the online proficiency self-assessment test. 2. Mr. Vivek Karve, Chief Financial Officer of the
Meeting of the Company. Board, its Committees, Individual Directors and
Company and Group Financial Services Sector
the Chairperson.
• Appointment of Mr. Siddhartha Mohanty as a
 it and Proper and Non-Disqualification Declaration
F 3. Ms. Brijbala Batwal, Company Secretary
Non-Executive Non-Independent Director The Company has formulated a process for
by Directors performance evaluation of the Independent Directors,
Pursuant to the recommendation of NRC and Changes in Key Managerial Personnel during
the Board of Directors of the Company, the  ll the Directors of the Company have confirmed that
A the Board, its Committees and other individual
FY2023
members of the Company have by means of an they satisfy the “fit and proper” criteria as prescribed Directors which includes criteria for performance
under Chapter XI of RBI Master Direction No. DNBR.  r. Amit Raje, ceased to be the Whole-time Director
M evaluation of the Non-Executive Directors and
Ordinary Resolution passed on 15th March 2022
PD. 008/ 03.10.119/2016-17 dated 1 st September and KMP of the Company w.e.f. 28th July 2022. Executive Directors.
vide Postal Ballot, approved the appointment of
Mr. Siddhartha Mohanty (DIN: 08058830) as a 2016, as amended, and that they are not disqualified
Non-Executive Non-Independent Director of the from being appointed/continuing as Director in terms
Company w.e.f. 1 st April 2022, liable to retire of Section 164(1) and (2) of the Companies Act, 2013.
by rotation.

120 Empowering Emerging India INTEGRATED REPORT 2022-23 121

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

An annual performance evaluation exercise was carried in compliance with the applicable provisions of the Strategic Presentations are made to the Board where in the Senior Management team, succession
Act, Listing Regulations, the Company’s Code of Independent Directors and the criteria and methodology of Directors get an opportunity to interact with Senior planning for Directors and Senior Management,
performance evaluation approved by the NRC as under: Management. Directors are also informed of the and the Talent Management framework of the
various developments in the Company through Press Company. Basis the recommendation of the
Evaluating
Evaluatee Broad criteria and parameters of evaluation Process of evaluation
Releases, emails, etc. During the year under review, Nomination and Remuneration Committee,
body the Company migrated to a new secure Board portal the Board of Directors had approved the
The Board, The Board as a Review of fulfilment of Board’s responsibilities Internal assessment through a which inter-alia provides a one stop and seamless revised policy, effective 25th November
the NRC whole including Strategic Direction, financial reporting, risk structured and separate rating solution for access to Board/Committee materials 2022 for strengthening the disclosures on
and the management framework, ESG, Grievance redressal, based questionnaire for each of to all the Directors. The Board portal also contains Corporate Governance, including policies on
Independent succession planning, knowledge of industry trends, the evaluations.
Annual Reports, Code of Conduct for Directors, terms Board membership criteria, Board Diversity
Directors diversity of Board etc. and feedback to improve Board’s The evaluation is carried out
effectiveness of appointment, committee charters and other policies Policy, Policy on criteria for determining
on a secured online portal
for ease of access. This enables greater transparency independence of Directors, updating statutory
The Board The Committees Structure, composition, attendance and participation, whereby the evaluators are
of the Board meetings of Committees, effectiveness of the functions able to submit their ratings and to the Board processes. amendments and updation with regards to
(separately for each handled, Independence of the Committee from the qualitative feedback, details of Succession Planning.
Pursuant to the provisions of the Companies Act, 2013
Committee) Board, contribution to decisions of the Board etc. which are accessible only to the
and Regulation 25(7) of the SEBI (Listing Obligations The said policy is available on the website of the
The Board, Independent Qualifications, experience, skills, independence criteria, NRC Chairperson. and Disclosure Requirements) Regulations, 2015 (“the Company and can be accessed at https://www.
the NRC, Directors including integrity of the Directors, contribution and attendance The NRC also reviews the
implementation and compliance
Listing Regulations”), the Company has during the mahindraf inance.com//investors/disclosures-
and the those seeking at meetings, ability to function as a team and devote
Independent re-appointment, time, fulfilment of functions, ability to challenge views of the evaluation exercise done year conducted familiarisation programmes through re g- 4 6 - 62 /co r p o r ate - gove r na nce#M M F SL-
Directors Non - Independent of others in a constructive manner, knowledge acquired annually. briefings at Board/ Committee meetings for all its policies
Directors, and the with regard to the Company’s business, understanding The results and outcome are Directors including Independent Directors.
ii) Policy on Remuneration of Directors and the
VC & MD (excluding of industry, fairness and transparency demonstrated, evaluated, deliberated upon
the Director being adequacy of resource staffing. Details of familiarisation programs imparted to the Policy on Remuneration of Key Managerial
and noted by the Independent
evaluated) Directors, the NRC and the
Independent Directors during the financial year under Personnel, Senior Management and other
The Board, Chairperson Skills, expertise, effectiveness of leadership, effective Board at their respective review in accordance with the requirements of the Employees of the Company
the NRC engagement with other Board members during and meetings. Listing Regulations are available on the Company’s
Your Company has also adopted the Policy on
and the outside meetings, allocation of time to other Board website and can be accessed at the weblink: https://
Remuneration of Directors and the Policy on
Independent members at the meetings and ability to steer the www.mahindrafinance.com//investors/disclosures-
Directors meetings, commitment, impartiality, ability to keep Remuneration of Key Managerial Personnel,
reg-46-62/corporate-governance#familiarisation-
shareholders’ interests in mind, effective engagement Senior Management and other Employees of the
programme and is also provided in the Corporate
with shareholders during general meetings etc. Company in accordance with the provisions of
Governance Report forming part of this Annual Report.
Sub-section (4) of Section 178 of the Act, Scale
The questionnaires for performance evaluation are Familiarisation Programme for Directors Based Regulations notified by the Reserve Bank
Policies on Appointment of Directors and Senior
comprehensive and in alignment with the guidance of India (“RBI”) and Listing Regulations. During the
The Company has adopted a structured programme for Management and Remuneration of Directors,
note on Board evaluation issued by the SEBI, vide its year, the said Policy was revamped to align with
orientation of all Directors including the Independent Key Managerial Personnel and Employees
circular no. SEBI/HO/CFD/CMD/CIR/P/2017/004 dated RBI Guidelines dated 29 th April 2022 including
Directors so as to familiarise them with the Company– i) Policy on Appointment of Directors and Senior
5th January 2017 and are in line with the criteria and introducing clawback/malus clause in the Policy.
its operations, business, industry, environment in Management and succession planning for
methodology of performance evaluation approved by which it functions, Indian and global macro-economic The said Policy is uploaded on the website of the
orderly succession to the Board and the Senior
the NRC. front and the regulatory regime applicable to it. Company and can be accessed at: https://www.
Management
The Management updates the Board Members on a mahindraf inance.com//investors/disclosures-
Outcome and results of the performance evaluation In accordance with the provisions of Section
continuing basis of any significant changes therein re g- 4 6 - 62 /co r p o r ate - gove r na nce#M M F SL-
134(3)(e) of the Companies Act, 2013 (“the Act”)
All the Directors of the Company as on and provides them an insight to their expected roles policies
read with Section 178 of the Act and Regulation
31 st March 2023 had participated in the evaluation and responsibilities so as to be in a position to take
17 of the SEBI (Listing Obligations and Disclosure
process. The Directors have expressed satisfaction well-informed and timely decisions and contribute Adequacy of Internal Financial Controls with
Requirements) Regulations, 2015 (“the Listing
with the criteria for evaluation of performance of significantly to the Company. Reference to the Financial Statements
Regulations”), your Company has adopted a
Board, its Committees and individual Directors,  our Company has in place adequate internal financial
Y
The Independent Directors of the Company are made Policy on Appointment of Directors and Senior
assessed via online portal through series of controls with reference to the Financial Statements
aware of their roles and responsibilities at the time Management and succession planning for
questions. The results of evaluation were encouraging commensurate with the size, scale and complexity of
of their appointment through a formal letter of orderly succession to the Board and the Senior
showing high level of engagement of Board and its operations.
appointment, which also stipulates various terms and Management, which, inter-alia, includes the
its Committees performing its role with effective
conditions of their engagement. The terms of reference criteria for determining qualifications, positive  our Company uses various industry standard systems
Y
oversight and providing guidance to Management.
of all the Committees with updations, if any, is shared attributes and independence of Directors, to enable, empower and engender businesses and also
The results of the evaluation were shared with the
with all the Board Members on quarterly basis. identification of persons who are qualified to to maintain its Books of Accounts. The transactional
Board, Chairman of respective committees and
become Directors and who may be appointed controls built into these systems ensure appropriate
individual Directors. Managing Director and Senior Management provide
an overview of the operations and familiarise the segregation of duties, the appropriate level of approval
Based on the results of the evaluation, the Board mechanisms and maintenance of supporting records.
Directors on matters related to the Company’s
has agreed on an action plan to further improve The systems, Standard Operating Procedures and
values and commitments. They are also introduced
the effectiveness and functioning of the Board. controls are reviewed by the Management.
to the organisation structure, constitution of various
The suggestions from previous evaluations were
committees, board procedures, risk management
implemented by the Company during FY2023.
strategies etc.
The Company migrated to a new  our Company’s Internal Financial Controls are
Y
deployed through Internal Control-Integrated
secure Board portal which inter-alia Framework (2013) issued by the Committee
provides one stop and seamless access of Sponsoring Organisations of the Treadway
to Board/Committee materials to all Commission (“COSO”), that addresses material risks
the Directors. in your Company’s operations and financial reporting

122 Empowering Emerging India INTEGRATED REPORT 2022-23 123

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

objectives. Such controls have been assessed during Separate meetings between the Chief Internal and monitoring of key risk indicators. The Risk The joint Statutory Auditors have issued unmodified
the year under review taking into consideration the Auditor and the Audit Committee Management Committee (“RMC”) constituted by Audit Reports on the Standalone and Consolidated
essential components of internal controls stated Separate meetings between the Chief Internal Auditor the Board manages the integrated risk and reviews Financial Statements for the financial year ended
in the Guidance Note on Audit of Internal Financial and the Audit Committee, without the presence periodically the Risk Management Policy and 31st March 2023. The Report does not contain any
Controls Over Financial Reporting (“ICFR”) issued by of Management, were enabled to facilitate free strategy followed by the Company. qualification, reservation or adverse remark or
The Institute of Chartered Accountants of India. The and frank discussion amongst them. The meetings disclaimer.
In compliance with Scale Based Regulations, the
risk control matrices are reviewed on a quarterly basis were held on 2nd May 2022, 20 th September 2022, The joint Statutory Auditors have given a confirmation
Board of Directors have basis recommendation of
and control measures are tested and documented 2nd November 2022 and 16th March 2023. to the effect that they have not been disqualified in
RMC adopted ICAAP Policy and Framework with the
on a quarterly basis. The Company has IT systems in any manner from continuing as the Statutory Auditors.
objective of ensuring availability of adequate capital
place making the ICFR process completely digital and Risk Based Internal Audit (“RBIA”) framework to support all risks in business as also enable effective Joint Statutory Auditors of the Company were present
strengthening the review and monitoring mechanism.
In compliance with RBI circular dated 3rd February risk management system in the Company. at the last Annual General Meeting ("AGM") held on
Based on the assessments carried out by the
2021, the Audit Committee has approved a Risk 28th July 2022.
Management during the year, no reportable material The Chief Risk Officer (“CRO”) oversees and
Based Internal Audit (“RBIA”) framework, along with
weakness or significant deficiencies in the design or strengthens the risk management function of the
appropriate processes and plans for internal audit for Adoption of Policy for appointment of Statutory
operation of internal financial controls was observed. Company. The CRO is invited to the Board, Audit
FY2023 and FY2024. The Risk Based Internal Audit Auditors
Committee, Asset Liability Committee and Risk
 our Company recognises that Internal Financial
Y Plan is also being reviewed by the Statutory Auditors
Management Committee Meetings. The CRO along In compliance with the Reserve Bank of India
Controls cannot provide absolute assurance of and Chief Risk Officer before being approved by the
with members of the Senior Management apprises Guidelines dated 27th April 2021, the Company has in
achieving financial, operational and compliance Audit Committee.
the Risk Management Committee and the Board place a Policy for appointment of Statutory Auditors
reporting objectives because of its inherent
The audit plan is aimed at evaluation of the on the risk assessment, process of identifying and of the Company.
limitations. Also, projections of any evaluation of
efficacy and adequacy of internal control systems evaluating risks, major risks as well as the movement
the Internal Financial Controls to future periods
and compliance thereof, robustness of internal within the risk grades, the root cause of risks and Secretarial Auditor and Audit Report
are subject to the risk that the Internal Financial
processes, policies and accounting procedures and their impact, key performance indicators, risk M/s. Makarand M. Joshi & Co., Practicing Company
Control may become inadequate because of
compliance with laws and regulations. Based on the management measures and the steps being taken to Secretaries were appointed as the Secretarial Auditor
changes in conditions or that the degree of
reports of internal audit, function/process owners mitigate these risks. of the Company for conducting the Secretarial Audit of
compliance with the policies or procedures may
undertake corrective action in their respective the Company for FY2023 and FY2024 in accordance
deteriorate. Accordingly, regular audits and review
areas. Significant audit observations are tracked and Auditors and Audit Reports with the provisions of Section 204 of the Act read
processes ensure that such systems are reinforced
presented to the Audit Committee, together with the Statutory Auditors and their Reports with the Rules framed thereunder.
on an ongoing basis.
status of the management actions and the progress
In terms of the provisions of Section 139 of In accordance with the provisions of Sub-section
of the implementation of the recommendations on a
 oint Statutory Auditor’s certification on internal
J the Companies Act, 2013 and RBI guidelines for (1) of Section 204 of the Companies Act, 2013,
regular basis.
financial controls appointment of statutory auditors of NBFCs and the Secretarial Audit Report for FY2023 issued by
 e Joint Statutory Auditors of the Company viz.
Th basis the recommendation of the Audit Committee M/s. Makarand M. Joshi & Co., is appended to this
Risk Management
M/s. Deloitte Haskins & Sells, Chartered Accountants and the Board of Directors of the Company, the Report as “Annexure III”.
Risk management forms an integral part of members have at 32 nd AGM held on 28 th July
and M/s. Mukund M. Chitale & Co., Chartered
the Company’s business. Your Company has a 2022 approved the appointment of M/s. Deloitte The former Secretarial Auditor viz. M/s KSR & Co.,
Accountants have examined the internal financial
comprehensive Risk Management Policy in place Haskins & Sells, Chartered Accountants (ICAI Firm Company Secretaries LLP and the current secretarial
controls of the Company and have submitted an
and has laid down a well-defined risk management Registration No. 117365W) [“DHS”] and M/s. Mukund auditor M/s. Makarand M. Joshi & Co., were present at
unmodified opinion on the adequacy and operating
framework to identify, assess and monitor risks M. Chitale & Co., Chartered Accountants (ICAI the last AGM of the Company held on 28th July 2022.
effectiveness of the internal financial controls over
and strengthen controls to mitigate risks. Your Firm Registration No. 106655W) [“MCC”], as the
financial reporting as at 31 st March 2023.
Company has established procedures to periodically Joint Statutory Auditors of the Company to hold The Secretarial Audit Report does not contain any
place before the Risk Management Committee office for a period of 2 consecutive years from the qualification, reservation or adverse remark or
Internal Audit Framework
and the Board of Directors, the risk assessment conclusion of the Thirty-second Annual General disclaimer.
 e Company has in place an adequate internal
Th and minimisation procedures being followed by Meeting till the conclusion of the Thirty-fourth Secretarial Audit of Material Subsidiary
audit framework to monitor the efficacy of the the Company and steps taken by it to mitigate Annual General Meeting of the Company to be held The Secretarial Audit of Mahindra Rural Housing
internal controls with the objective of providing to these risks. in the year 2024. The Joint Statutory Auditors Finance Limited (“MRHFL”), a material, debt listed
the Audit Committee and the Board of Directors, an
The Risk Management Policy, inter-alia, includes holds a valid peer review certificate as prescribed subsidiary of the Company, for FY2023 was carried
independent, objective and reasonable assurance on
identification of elements of risk, including Cyber under the SEBI (Listing Obligations and Disclosure out pursuant to Section 204 of the Companies
the adequacy and effectiveness of the Company’s
Security and related risks as well as those risks which Requirements) Regulations, 2015 (“the Listing Act, 2013. The Secretarial Audit Report of MRHFL
processes. The internal audit approach verifies
in the opinion of the Board may threaten the existence Regulations”). submitted by M/s. KSR & Co., Company Secretaries
compliance with the operational and system related
procedures and controls. of the Company. LLP, does not contain any qualification, reservation or
adverse remark or disclaimer.
The Risk management process has been established
across the Company and is designed to identify,
Annual Secretarial Compliance Report with
assess and frame a response to threats that
additional confirmations on compliances
affect the achievement of its objectives. Further,
In compliance with RBI circular it is embedded across all the major functions and The joint Statutory Auditors have In compliance with Regulation 24A of SEBI Listing
Regulations, your Company has undertaken an
dated 3rd February 2021, the Audit revolves around the goals and objectives of the issued unmodified Audit Reports on the audit for FY2023 for all the applicable compliances
Company. Your Company has a robust organisational
Committee has approved a Risk Based structure for managing and reporting on risks.
Standalone and Consolidated Financial as per SEBI (Listing Obligations and Disclosure
Internal Audit (“RBIA”) framework, This risk management mechanism works at all the Statements for the financial year ended Requirements) Regulations, 2015 and Circulars/
along with appropriate processes and levels, which acts as the strategic defence cover of 31st March 2023. The Report does not Guidelines issued thereunder.
plans for internal audit for FY2023 and the Company’s risk management and is supported contain any qualification, reservation or The Annual Secretarial Compliance Report (“ASCR”)
by regular review, control, self-assessments
FY2024. adverse remark or disclaimer. issued by M/s. Makarand M. Joshi & Co., Company

124 Empowering Emerging India INTEGRATED REPORT 2022-23 125

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Secretaries, Secretarial Auditor for FY2023 with arrangements or transactions for the year ended www.mahindrafinance.com//investors/disclosures- 97,783 ESOPs of M&M at an exercise price of ₹ 5/-
additional confirmations on compliances by the 31st March 2023. The disclosure as required under reg-46-62/corporate-governance#MMFSL-policies per share. While he was paid remuneration from
Company with respect to Insider Trading Regulations, Section 134(3)(h) of the Companies Act 2013, in form the Company during his stint with the Company
The Audit Committee is apprised of the vigil mechanism
Related party Transactions, updation of Policies, AOC-2, is not applicable to the Company and hence, as WTD, out of 43,458 ESOPs of M&M vested and
on a periodic basis. During the year, no person was
disclosure of material events to Stock Exchanges etc. the prescribed Form AOC–2 does not form a part of exercisable by him, he exercised 34,028 ESOPs
denied access to the Chairperson of the Audit
as per revised ASCR format prescribed by BSE and this report. during FY2023.
Committee. A quarterly report on the whistle blower
NSE, has been filed with the Stock Exchanges.
In accordance with the applicable provisions of the complaints is placed before the Audit Committee for Except as mentioned herein, Mr. Ramesh Iyer and
Master Direction issued by the Reserve Bank of its review. Mr. Amit Raje did not receive any other remuneration
Cost Records and Cost Audit
India and the SEBI (Listing Obligations and Disclosure or commission from Holding/Subsidiaries of the
Maintenance of cost records and requirement of cost Requirements) Regulations, 2015 (“the Listing Particulars of Employees and Related Disclosures Company during FY2023.
audit as prescribed under the provisions of Section Regulations”), the ‘Policy on Materiality of and Dealing Details of employees who were in receipt of
148 of the Companies Act, 2013 are not applicable with Related Party Transactions’, is available on the Disclosure under the Sexual Harassment of
remuneration of not less than ₹ 1,02,00,000
in respect of the business activities carried out by the Company’s website: https://www.mahindrafinance. Women at Workplace (Prevention, Prohibition
during the year ended 31 st March 2023 or not
Company and hence such accounts and records were com//investors/disclosures-reg-46-62/corporate- and Redressal) Act, 2013 (“POSH Act”)
less than ₹ 8,50,000 per month during any part of
not required to be maintained by the Company. governance#MMFSL-policies. the year, as required under provisions of Section Your Company is an equal opportunity employer
The transactions of the Company with the company 197(12) of the Companies Act, 2013 read with and is committed to ensuring that the work
Reporting of Frauds by Auditors
belonging to the promoter/promoter group which Rule 5(2) and 5(3) of Companies (Appointment environment at all its locations is conducive to fair,
During the year under review, the Joint Statutory and Remuneration of Managerial Personnel) Rules, safe and harmonious relations between employees.
holds more than 10% shareholding in the Company
Auditors and the Secretarial Auditor have not reported 2014 will be made available during 21 days before It strongly believes in upholding the dignity of all its
as required pursuant to para A of schedule V of the
any instances of frauds committed in the Company the Annual General Meeting in electronic mode to employees, irrespective of their gender or seniority.
Listing Regulations is disclosed separately in the
by its Officers or Employees, to the Audit Committee any Shareholder upon request sent at the Email Discrimination and harassment of any type are
financial statements of the Company. Further, details
under Section 143(12) of the Companies Act, 2013, ID: investorhelpline_mmfsl@mahindra.com. Such strictly prohibited.
on the transactions with related parties are provided
details of which need to be mentioned in this Report. details are also available on Company’s website
in the accompanying financial statements. Your Company has in place a comprehensive Policy
and can be accessed at the web-link: https://
Particulars of Contracts or Arrangements with in accordance with the provisions of POSH Act and
Whistle Blower Policy/Vigil Mechanism www.mahindraf inance.com/investors/disclosures-
Related Parties Rules made thereunder.
reg-46-62/financial-information
The Company promotes ethical behaviour in all
All contracts/arrangements/transactions entered into All employees (permanent, contractual, temporary
its business activities and has established a vigil Disclosures with respect to the remuneration of
by the Company during the Financial Year with related and trainees) are covered under this Policy. The Policy
mechanism for its Directors, Employees, and Directors, Key Managerial Personnel and Employees
parties were in the ordinary course of business and has been widely communicated internally and is placed
Stakeholders associated with the Company to as required under Section 197(12) of the Companies
on an arm’s length basis. Prior/omnibus approval is on the Company’s intranet portal. The Company
report their genuine concerns. The Vigil Mechanism Act, 2013 and Rule 5(1) of Companies (Appointment
obtained for Related Party Transactions which are ensures that no employee is disadvantaged by way of
as envisaged in the Companies Act, 2013 and the and Remuneration of Managerial Personnel) Rules,
of repetitive nature and/or entered in the Ordinary gender discrimination.
Rules prescribed thereunder and the SEBI (Listing 2014, is given in ‘Annexure IV.”
Course of Business and are at Arm’s Length. All
Obligations and Disclosure Requirements) Regulations, The POSH Policy is available on the website of the
Related Party Transactions and subsequent material
2015 is implemented through the Whistle Blower Disclosure in respect of remuneration/commission Company and can be accessed at the web-link: https://
modifications are placed before the Audit Committee
Policy, to provide for adequate safeguards against drawn by the Managing Director/Whole-time Director www.mahindrafinance.com//investors/disclosures-
for review and approval.
victimisation of persons who use such mechanism and from Holding or Subsidiary Company reg-46-62/corporate-governance#MMFSL-policies.
All Related Party Transactions entered during the make provision for direct access to the Chairperson of During FY2023, Mr. Ramesh Iyer, Vice Chairman Your Company has complied with the provisions
year were in the ordinary course of business and on the Audit Committee. & Managing Director has received an amount of relating to the constitution of the Internal Complaints
arm’s length basis. During the year under review your ₹ 89.23 lakhs towards settlement of fourth vesting
As per the Whistle Blower Policy implemented by the Committee (“ICC”) under the POSH Act to redress
Company had not entered into any material related of Employees’ Phantom Stock Options granted by
Company, the Employees, Directors or any Stakeholders complaints received regarding sexual harassment.
party transactions i.e. transactions exceeding 10% of Mahindra Insurance Brokers Limited, subsidiary of
associated with the Company are free to report illegal
the annual consolidated turnover as per the last audited the Company. To ensure that all the employees are sensitised
or unethical behaviour, actual or suspected fraud,
financial statements or exceeding ₹ 1,000 crores. regarding issues of sexual harassment, the Company
or violation of the Company’s Code(s) of Conduct or Mr. Amit Raje, was appointed as Whole time conducts an online Induction Training through
Corporate Governance Policies or any improper activity, Director (“WTD”) of the Company w.e.f. 1 st April
Disclosure as required in Form AOC-2 the learning platform M-Drona (Internal Training
through the channels provided below. 2021 and ceased to hold the said position w.e.f.
There were no contracts or arrangements or App) covering topics including POSH awareness,
The Whistle Blower Policy provides for protected 28 th July 2022. Mr. Raje was earlier associated reconciliation before filing POSH complaint(s) and
transactions entered into during the year ended
disclosure and protection to the Whistle Blower. Under with the Holding Company viz. Mahindra & consequences of filing false complaint(s).
31st March 2023 which were not at arm’s length
the Whistle Blower Policy, the confidentiality of those Mahindra (“M&M”) as Executive Vice President –
basis. Further, there were no material contracts or The following is a summary of Sexual Harassment
reporting violation(s) is protected and they are not Partnerships & Alliances, wherein he was granted
complaint(s) received and disposed off during the
subject to any discriminatory practices. The Whistle-
FY2023, pursuant to the POSH Act and Rules
blower can make a Protected Disclosure by using any
framed thereunder:
of the following channels for reporting:
a) Number of complaint(s) of Sexual Harassment
As per the Company's Whistle Blower 1. 
Independent third party Ethics Helpline
The Company conducts an online received during the year – 1
Service Portal: https://ethics.mahindra.com
Policy, the Employees, Directors or Induction Training through the learning b) Number of complaint(s) disposed off during the
any Stakeholders associated with the 2. Toll free No: 000 800 100 4175
platform M-Drona (Internal Training year – 1
Company are free to report illegal or 3. Chairperson of the Audit Committee App) covering topics including POSH c) Number of cases pending as at 31 st March
unethical behaviour, actual or suspected The Whistle Blower Policy has been widely disseminated awareness, reconciliation before filing 2023– 0
fraud, or violation of the Company’s within the Company. The Policy is available on the POSH complaint(s) and consequences of
Code(s) of Conduct. website of the Company at the web link: https://
filing false complaint(s).

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Overview & IR Report & Sustainability
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d) Number of workshops/awareness programme Details of significant and material orders passed has been passed by the respective jurisdictional NCLTs was given by the Company (as there is no scheme
on the subject carried out during the year under by the regulators or courts or tribunals impacting for initiating Corporate Insolvency Resolution Process pursuant to which such persons can beneficially
review were as under: the going concern status and the Company’s against the said companies. hold shares as envisaged under Section 67(3)(c)
• Awareness program was conducted in which operations in future of the Companies Act, 2013 ("the ACT");
mailers & video on the Prevention of Sexual There were no significant and material orders passed Disclosure on one time Settlement
• There was no suspension of trading of securities
Harassment at the workplace along with POSH by the regulators or courts or tribunals during the year During the year, the Company has not made any of the Company on account of corporate action
policies was circulated to all employees. POSH impacting the going concern status of the Company one-time settlement for loans taken from the Banks or or otherwise;
training was provided to all new joinees as a part and its future operations. Financial Institutions and hence the details of difference
of induction module. between amount of the valuation done at the time • There was no revision made in Financial Statements
During the year under review and till the date of this or the Board’s Report of the Company;
• An online e-learning module for employees on of one time settlement and the valuation done while
report, Reserve Bank of India ("RBI") has passed the
Prevention of Sexual Harassment covering taking loan from the Banks or Financial Institutions • The Company being an NBFC, the provisions
following orders against the Company:
topics on Sexual Harassment, process of filing along with the reasons thereof is not applicable. relating to Chapter V of the Act, i.e., acceptance
complaints, dealing with sexual harassment, 1. Vide its press release dated 22nd September of deposit, are not applicable. Disclosures as
etc. is developed for training all the employees. 2022, the RBI had directed the Company to General Disclosure per NBFC regulations have been made in this
83% of the employees have completed cease carrying out any recovery or repossession The Directors further state that no disclosure or Annual Report.
this training. activity through outsourcing arrangements. reporting is required in respect of the following items,
The said prohibition was lifted by RBI effective as there were no transactions/events related to these Acknowledgments
• ICC training conducted for all ICC members. –
4th January 2023 based on the submissions items during the financial year under review:
1 session The Board conveys its deep gratitude and
made by the Company and its commitment
• POSH sensitisation training conducted for HR • There was no issue of equity shares with appreciation to all the employees of the Company
to strengthen its recovery practices and
team. – 5 sessions differential rights as to dividend, voting for their tremendous efforts as well as their
outsourcing arrangements, tighten the process
or otherwise; exemplary dedication and contribution to the
of onboarding third party agents and strengthen
Conservation of Energy, Technology Absorption Company’s performance.
accountability framework as per its Board • There was no issue of shares (including sweat
and Foreign Exchange Earnings and Outgo approved action plan. The Directors would also like to thank its Shareholders,
equity shares) to the employees of the Company
The information in respect of conservation of energy, under any scheme; Customers, Vendors, Business Partners, Bankers,
2. Vide its order dated 5thApril 2023, the RBI
technology absorption and foreign exchange earnings Government and all other Business Associates
imposed a monetary penalty of ₹ 6.77 crores • There was no raising of funds/Issue of shares
and outgo, as required under Section 134(3)(m) of for their continued support to the Company and
on the Company for deficiencies in regulatory through Preferential Allotment, Public Issue,
the Companies Act, 2013 read with Rule (8)(3) of the Management.
compliance with the RBI directions on fair Rights Issue or Qualified Institutional Placement;
the Companies (Accounts) Rules, 2014 is attached as
practices relating to disclosure of annualised For and on behalf of the Board
‘Annexure V’ to the Board’s Report. • There was no buy back of the equity shares during
rate of interest charged on loans to certain
borrowers at the time of sanction and failure the year under review;
Policies Dr. Anish Shah
to give notice of change in terms and conditions • There were no voting rights which are not directly
The details of the Key Policies adopted by the of loan to these borrowers. Your Company has Place : Mumbai Chairman
exercised by the employees in respect of equity
Company and changes made therein, if any, during the already implemented remedial actions to modify Date : 28 th April 2023 DIN: 02719429
shares for the subscription/purchase of which loan
year under review are mentioned at “Annexure VI” to its processes and documentation to ensure
the Board’s Report. disclosures, as per regulatory requirements.

Compliance with the Provisions of Secretarial The above-mentioned orders do not impact either the
Standard – 1 and Secretarial Standard – 2 going concern status or the Company’s operations
in future.
The Directors have devised proper systems to ensure
compliance with the provisions of the Secretarial Your Company will continue to invest in talent,
Standards, i.e. SS-1 and SS-2, relating to ‘Meetings systems and processes to further strengthen the
of the Board of Directors’ and ‘General Meetings’, control, compliance, risk management and governance
respectively, issued by the Institute of Company standards in the organisation.
Secretaries of India (“ICSI”) and such systems are
The Members may also refer note no. 53(VII)(b) of the
adequate and operating effectively.
standalone financial statements.
Voluntary adherence of Secretarial Standards by
Disclosure Pertaining to Insolvency & Bankruptcy
all Board Committees
Code
Although, SS-1 compliance is required only for
Your Company has not made any application under the
Board and its Committees mandatorily required
Insolvency and Bankruptcy Code, 2016 (“IBC”) during
to be constituted under the Companies Act, 2013
the year under review. The details of the pending
(“the Act”), the Company adheres and complies
proceedings under IBC is mentioned hereunder:
with the good practices enunciated in the said
Secretarial Standards for all its mandatory and non- Your Company had filed 2 petitions with National
mandatory Committees. Company Law Tribunal (“NCLT”) under IBC in FY2021,
for recovery of outstanding loans from its customers,
Your Company has duly complied with applicable SS-1
being Corporate Debtors. The proceedings with
and SS-2, during the year under review.
respect to said petitions were completed and order

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Annexure I Parameters adopted with regard to various viii. Future cash requirements for organic growth/
classes of shares expansion and/or for inorganic growth,

Dividend Distribution Policy i) Dividend would continue to be declared on per

share basis on the Equity Shares of the Company
ix. Brand acquisitions,

having face value of ₹ 2 each. Presently, the x. Current and future leverage and, under
Authorised Share Capital of the Company is divided exceptional circumstances, the amount of
Preamble rules/guidelines/ notifications/circulars issued by into Equity Shares of ₹ 2 each and preference contingent liabilities,
Regulation 43A of the Securities and Exchange the Reserve Bank of India and any other regulation, shares of ₹ 100 each. At present, the issued and xi. Deployment of funds in short term marketable
Board of India (Listing Obligations and Disclosure rules, acts, guidelines as may be applicable paid-up share capital of the Company comprises investments,
Requirements) Regulations, 2015, as amended [including any amendments or re-enactments of only Equity Shares of ₹ 2 each which rank pari-
by the Securities and Exchange Board of India thereof], to the distribution of dividend. passu with respect to all their rights. Therefore, xii. Long term investments,
(Listing Obligations and Disclosure Requirements) c. “Board” or “Board of Directors” shall mean Board dividend declared will be distributed amongst all xiii. Capital expenditure(s), and
(Second Amendment) Regulations, 2016, [“the of Directors of the Company, as constituted from shareholders, based on their shareholding on the
Listing Regulations”] makes it mandatory for the record date. In the event of the Company issuing xiv. The ratio of debt to equity (at net debt and gross
time to time.
top five hundred listed entities based on their any other class(es) of shares, it shall consider and debt level).
market capitalisation calculated as on March 31 d. “Company” shall mean Mahindra & Mahindra specify the other parameters to be adopted with
of every financial year to formulate a Dividend Financial Services Limited. respect to such class(es) of shares. External Factors:
Distribution Policy. e. “Dividend” includes any interim dividend; which is in i. Business cycles,
ii) The Company shall first declare dividend on
In compliance with the provisions of Regulation 43A of conformity with Section 2(35) of the Companies outstanding preference shares, if any, at the rate ii. Economic environment,
the Listing Regulations the Board of Directors of the Act, 2013 read with Companies (Declaration and of dividend fixed at the time of issue of preference
Payment of Dividend) Rules, 2014. iii. Cost of external financing,
Company at its meeting held on 25th October 2016, shares and thereafter, the dividend would be
has approved and adopted the Dividend Distribution f. “Dividend Payout Ratio” is the ratio between the declared on Equity Shares. iv. Applicable taxes including tax on dividend,
Policy of the Company [“the Policy”]. amount of the dividend payable in a year and the iii) As and when the Company issues other kind v. Industry outlook for the future years,
The Company being a Systematically Important net profit as per the audited financial statements of shares, the Board of Directors may suitably
for the financial year for which the dividend vi. Inflation rate, and
Deposit-Taking Non-Banking Financial Company amend this Policy.
is governed by the Reserve Bank of India (“RBI”). is proposed. vii. Changes in the Government policies, industry
Annexure - 1 to this Policy specifies the provisions In case the net profit for the relevant period Factors for recommendation/ Declaration of specific rulings and regulatory provisions.
listed out by RBI, compliance of which is being/shall includes any exceptional and/or extra-ordinary Dividend
Apart from the above, the Board also considers
be ensured by the Company, in addition to provisions profits/ income or the financial statements are As in the past, subject to the provisions of the past dividend history and sense of shareholders’
under the Companies Act, 2013 and other applicable qualified (including ’emphasis of matter’) by the applicable law, the Company’s dividend payout will be expectations while determining the rate of dividend.
regulatory provisions. statutory auditor that indicates an overstatement determined based on available financial resources, The Board may additionally recommend special
The Policy shall come into force for accounting periods of net profit, the same shall be reduced from investment requirements and taking into account dividend in special circumstances.
beginning from 1 st April 2016. net profits while determining the Dividend optimal shareholder return. Within these parameters,
Payout Ratio. the Company would endeavour to maintain a total Circumstances under which the shareholders of
Objective dividend pay-out ratio in the range of 20% to 30% the Company may or may not expect Dividend
g. “Financial year” shall mean the period starting
of the annual standalone Profits after Tax (PAT) of
The Policy establishes the principles to ascertain from 1 st day of April and ending on the 31 st day of The shareholders of the Company may not expect
the Company.
amounts that can be distributed to equity shareholders March every year. dividend in the below mentioned circumstances:
as dividend by the Company as well as enable the While determining the nature and quantum of the
h. “Free reserves” shall mean the free reserves as i. In the event of a growth opportunity where the
Company strike balance between pay-out and dividend payout, including amending the suggested
defined under Section 2(43) of the Act. Company may be required to allocate a significant
retained earnings, in order to address future needs of payout range as above, the Board would take into
amount of capital.
the Company. i. Capital to Risk Assets Ratio (Capital Adequacy account the following factors:
Ratio) shall mean the Percentage of Capital ii. In the event of higher working capital requirement
This Policy aims to ensure that the Company makes
Funds to Risk Weighted Assets/Exposures of Internal Factors (Financial Parameters): for business operations or otherwise.
rational decision with regard to the amount to be
the Company. i. Profitable growth of the Company and specifically,
distributed to the shareholders as dividend after iii. In the event of inadequacy of cash flow available
retaining sufficient funds for the Company’s growth, profits earned during the financial year as for distribution.
Dividend Distribution Philosophy compared with:
to meet its long-term objective and other purposes.
Dividends will generally be recommended by the iv. In the event of inadequacy or absence of profits.
It lays down various parameters which shall be a. Previous years; and
considered by the Board of Directors of the Company Board once a year, after the announcement of the full The Board may consider not declaring dividend or
before recommendation/declaration of dividend to year results and before the Annual General Meeting b. Internal budgets, may recommend a lower payout for a given financial
its shareholders. ("AGM") of the shareholders, as may be permitted year, after analysing the prospective opportunities and
ii. Cash flow position of the Company,
by the Companies Act, 2013. The Board may also threats or in the event of challenging circumstances
Definitions declare interim dividends as may be permitted by the iii. Accumulated reserves, such as regulatory and financial environment.
Companies Act, 2013.
a. “Act” means the Companies Act, 2013 and Rules iv. Capital to Risk Assets Ratio (Capital Adequacy In such event, the Board will provide rationale in the
made thereunder [including any amendments or The Company has had a consistent dividend policy Ratio), Annual Report.
re-enactments thereof]. that balances the objective of appropriately rewarding
v. Transfer to Statutory Reserves as per the
shareholders through dividends and to support the Manner of Utilisation of Retained Earnings
b. “Applicable laws” shall mean to include Companies Reserve Bank of India Act, 1934,
future growth.
Act, 2013 and Rules made thereunder, Securities The retained earnings of the Company may be used in
vi. Transfer to Debenture Redemption Reserve,
and Exchange Board of India (Listing Obligations Information on dividend for the last 10 years is any of the following ways:
and Disclosure Requirements) Regulations, 2015, furnished in the Annual Report. vii. Earnings stability,
i. Capital expenditure for working capital,

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Analysis Governance Statements Statements
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ii. Organic and/or inorganic growth, In case of any amendment(s), clarification(s), circular(s) Annexure-1 to the Dividend Distribution Policy
etc. issued under any Applicable laws/ Regulations,
iii. Investment in new business(es) and/or additional
which is not consistent with any of the provisions of Reserve Bank of India Guidelines on Declaration of Dividends by NBFCS
investment in existing business(es),
this Policy, then such amendment(s), clarification(s),
(dated 24th June 2021 bearing reference no. RBI/2021-22/59 DOR.ACC.REC.No.23/21.02.067/2021-22)
iv. Declaration of dividend, circular(s), etc. shall prevail upon the provisions
hereunder and this Policy shall be deemed to be
v. Capitalisation of shares, Factors to be considered for Payment of Dividend
amended accordingly from the effective date as
vi. Buy back of shares, laid down under such amendment(s), clarification(s), The Board of Directors shall, while considering the proposals for dividend, take into account the following aspects:
circular(s) etc. (a) Supervisory findings of the Reserve Bank of India on divergence in classification and provisioning for Non-
vii. General corporate purposes, including
contingencies, Disclosures Performing Assets;

viii. Correcting the capital structure, The Company shall make appropriate disclosures (b) Qualifications in the Auditors’ Report to the financial statements; and
in compliance with the provisions of the Listing (c) Long term growth plans of the Company.
ix. Any other permitted usage as per the Companies
Regulations, in particular the disclosures required to
Act, 2013. The Board shall ensure that the total dividend proposed for the financial year does not exceed the ceilings
be made in the Annual Report and on the website of
the Company. specified in the RBI Guidelines.
General
Due regard shall be given to the restrictions/ The policy will be available on the Company’s website and Eligibility Criteria for Payment of Dividend
covenants contained in any agreement entered the link to the policy is: https://www.mahindrafinance.
The Company being a Deposit taking (NBFC-D) and Systemically important NBFC shall comply with the minimum
into with the lenders of the Company or any other com//investors/disclosures-reg-46-62/corporate-
prudential requirements with respect to Capital Adequacy, Net Non-Performing Assets (“NPA”) and other
financial covenant as may be specified under any other governance#MMFSL-policies. The Policy will also be
criteria as applicable to be eligible to declare dividend as applicable and as mentioned below:
arrangement/agreement, if any, before recommending disclosed in the Company’s Annual Report.
or distributing dividend to the shareholders. In case, the Company proposes to declare dividend on
Sr.
the basis of the parameters in addition to those as No.
Parameters Requirement
Review specified in this Policy and/or proposes to change any
The Board of Directors shall have the right to modify, of the parameters, the Company shall disclose such 1. Capital The Company should have met the following regulatory capital requirement for each of the last three
amend or change any or all clauses of this Policy in changes along with the rationale in the Annual Report Adequacy financial years including the financial year for which the dividend is proposed:
accordance with the provisions of the Applicable laws/ and on its website. • Maintain a minimum capital ratio consisting of Tier I and Tier II capital not less than 15 percent
Acts/Regulations or otherwise. of aggregate risk weighted assets on-balance sheet and of risk adjusted value of off-balance
sheet items.
• The Tier I capital at any point of time, shall not be less 10 per cent.
2. Net NPA The net NPA ratio shall be less than 6 per cent in each of the last three financial years, including as at
the close of the financial year for which dividend is proposed to be declared.
3. Other criteria • The Company shall comply with the provisions of Section 45 IC of the Reserve Bank of India
Act, 1934.
• The Company shall be compliant with the prevailing regulations/ guidelines issued by the Reserve
Bank. The Reserve Bank of India shall not have placed any explicit restrictions on declaration
of dividend.

Dividend Payout Ratio

The ceiling on dividend payout ratio for the Company, if compliant with the Eligibility Criteria to declare dividend,
shall be 50%.
If the Company does not meet the Eligibility Criteria prescribed above for each of the last three financial years,
it may be eligible to declare dividend, subject to a cap of 10 percent on the dividend payout ratio, provided it
complies with the following conditions:
(a) meets the applicable capital adequacy requirement in the financial year for which it proposes to pay
dividend; and
(b) has net NPA of less than 4 percent as at the close of the financial year.

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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
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Annexure II 3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR projects
approved by the Board are disclosed on the website of the Company

Corporate Social Responsibility 

CSR Policy & Committee - https://www.mahindrafinance.com/discover-mahindra-finance/policies
CSR Projects - https://www.mahindrafinance.com/rise-for-good/key-csr-projects
Annual Report on Corporate Social Responsibility (“CSR”) Activities for FY2023
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects
1. Brief outline on CSR Policy of the Company • Health - Eradicating hunger, pover t y and carried out in pursuance of sub-rule (3) of rule 8, if applicable
At Mahindra & Mahindra Financial Services malnutrition, promoting health care including
The Company has been conducting internal impact assessments to monitor and evaluate its CSR projects/
Limited (‘MMFSL’ or ‘The Company’ or ‘Mahindra preventive health care and sanitation and
programs. Rule 8(3) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 ("Companies
Finance’) we believe that the organisation and its making available safe drinking water.
CSR Policy Rules, 2014") mandates the companies to undertake Impact Assessment that have CSR
community are highly interdependent. Both on its • E nv i ro n m e n t - E n s u r ing e nv ir o nm e n t a l projects with outlays of minimum ₹ 1 crore and which have been completed not less than 1 year before
own and as part of the Mahindra Group, through sustainability, ecological balance, protection of undertaking impact assessment.
constant and collaborative interactions with our flora and fauna, animal welfare, agro forestry,
stakeholders, MMFSL strives to become an asset Tree Pl ant ation, conser vation of natural Pursuant to sub-rule (3) of Rule 8 of the Companies CSR Policy Rules, 2014, impact assessment was
in the communities where it operates. resources and maintaining quality of soil, air required to be carried out for the following projects:
and water etc.
The endeavor is to empower the communities and Amount
help them unleash their true potential. Keeping in • Others - From time to time, the Company may CSR Projects
Spent (in ₹)
Project Period

mind the core purpose of driving positive change identify newer thrust Areas , in so far as such
COVID 19 Relief Project 1,03,70,000 June 2021 to September 2021
in the lives of our communities, the Company has activities are as defined in Schedule VII of the
Swabhimaan 10,56,98,474 April 2021 to March 2022
been investing in impactful CSR projects. Companies Act, 2013, as amended, from time
to time. Mahindra Pride School 9,00,00,000 April 2021 to March 2022

The objective of our CSR Policy has been to: Nanhi Kali 2,76,00,000 April 2021 to March 2022
We ensure to define and lay down the following in Women Economic Empowerment 4,71,00,000 October 2021 to March 2022
• Define and lay down the guiding principles and
all our CSR projects undertaken:
strategies for implementing Company’s CSR The Company has engaged independent agencies to carry out the impact assessment for the aforesaid
initiatives; • Project objectives projects. Of the abovementioned projects, impact assessment has been completed for COVID-19 relief
• Outline our Board’s vision and approach for • Need Assessment/Base line Survey project and Swabhimaan.
undertaking CSR programs and create impact • Implementation schedules As per MCA General Circular No. 14/2021 dated 25th August 2021 on FAQs on CSR, it is clarified that web-
in the communities.
• Defined fund disbursement schedules link to access the complete impact assessment reports and providing executive summary of the impact
• Encoura ge an increa sed commitment and assessment reports in the annual report on CSR, shall be considered as sufficient compliance of Rule 8(3)
• Responsibilities and authorities
engagement from the employees towards CSR. (b) of the Companies CSR Policy Rules, 2014.
• Ma jor re sult s e x pe c te d a nd mea su r a ble
CSR Thrust Areas outcome Accordingly, the Executive Summary for Impact Assessment Reports of COVID-19 relief project and
Swabhimaan, is annexed to this Annexure and the complete Impact Assessment Reports of the applicable
Your Company has identified the following CSR
As per the CSR Policy of the Company, the CSR projects can be accessed at the Web-link: https://www.mahindrafinance.com/rise-for-good/csr-reports
thrust areas for undertaking CSR projects/
Projects are undertaken based on the annual
programs in India which are aligned with The impact assessment for the remaining projects viz. Mahindra Pride School Classrooms, Nanhi Kali and
action plan formulated and recommended by
national priorities: Women economic empowerment is in process and the complete report including findings for the said
the CSR Committee and approved by the Board.
projects will be published on the website of the Company once the assessment exercise is completed.
• Education & Livelihood - Promoting education, The implementing partners report, on a periodic
including special education, financial literacy basis, the progress of the project activities, the
5. (a) Average net profit of the company as per Sub-section (5) of Section 135
and employment enhancing vocation skills utilisation of funds disbursed and sustainability
especially among children, youth, adults, women, of the project. The CSR Committee reviews the ₹ 1856,68,22,932 (Average of FY2022, FY2021, FY2020)
elderly and the differently- abled, and livelihood progress of CSR initiatives undertaken on a
enhancement projects. regular basis. (b) Two percent of average net profit of the company as per Sub-section (5) of Section 135
₹ 37,13,36,459
2. Composition of the CSR Committee
CSR Committee composition as at 31 st March 2023 and attendance at the CSR meetings held (c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years
during FY2023: Nil

Number of Number of (d) Amount required to be set-off for the financial year, if any
meetings of meetings of
Name of Director Designation / Nature of Directorship CSR Committee CSR Committee % Attendance Nil
held during the attended during
year the year
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]:
Mr. Dhananjay Mungale Chairperson, Independent Director 3 3 100%
Ms. Rama Bijapurkar Member, Independent Director 3 3 100% ₹ 37,13,36,459
Mr. Ramesh Iyer Member, Executive Director 3 3 100%

There was no change in the composition of the Corporate Social Responsibility Committee during the year.

134 Empowering Emerging India INTEGRATED REPORT 2022-23 135

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6. (a) Amount spent on CSR Projects (both Ongoing Projects and other than Ongoing Projects):
Short particulars of the Pincode Amount
₹ 36,45,43,133 property or asset(s) of the
Date of
of CSR
Sl. creation Details of entity/ Authority/beneficiary
[including complete property amount
No. (dd-mm- of the registered owner*
(b) Amount spent in Administrative Overheads: address and location of or spent
yyyy)
the property] asset(s) (in ₹)
₹ 63,58,314
CSR
(c) Amount spent on Impact Assessment, if applicable: Registration Registered
Name
number, if address
applicable
₹ 12,52,831
1. Ambulance- 411046 18-10-2022 9,14,616 CSR00036246 Helping Helping Hand Social
Helping Hand Social Hand Social Foundation, Building
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Foundation, Building No. Foundation No. E-1, Flat No 1103,
E-1, Flat No 1103, 11T, 11T, Nirman Viva
₹ 37,21,54,278 Nirman Viva Society, Society, Ambegaon Bk,
Ambegaon Bk, Pune, MH Pune, MH- 411046
(e) CSR amount spent or unspent for the Financial Year (FY2023): 2. Ambulance- 205001 18-10-2022 9,18,265 CSR00013795 Swami Swami Hariharanand
Swami Bhajnanand Trust, Bhajnanand Saraswati, Shree
Amount Unspent (in ₹) Swami Hariharanand Trust Akraekrasanand
Saraswati, Shree Ashram, Punjabi Colony
Total Amount transferred to Amount transferred to any fund specified Akraekrasanand Mainpuri UP, 205001
Total Amount
Unspent CSR Account as per under Schedule VII as per second provision to
Spent for the Financial Year
Sub-section (6) of Section 135 Sub-section (5) of Section135
Ashram, Punjabi Colony
(in ₹) Mainpuri UP
Date of Name of Date of
Amount Amount 3. Ambulance- 781007 17-10-2022 9,22,652 CSR00006101 Ramakrishna Ramakrishna
transfer the Fund transfer
Ramakrishna Mission Mission Mission Road,
37,21,54,278 Nil Nil Nil Nil Nil Road, Ulubari, Guwahati, Ulubari, Guwahati,
Kamrup (M) Kamrup (M) – 781007

(f) Excess amount for set-off, if any: 4. Ambulance- 190003 20-10-2022 9,26,478 CSR00038015 Kashmir Kashmir Athrout,
Kashmir Athrout, Athrout Nawakadal, Srinagar,
Nawakadal, Srinagar, JK JK - 190003
Sr. Amount
Particulars 5. Ambulance- 415409 22-12-2022 9,14,616 CSR00038117 Prakash Prakash Shikshan
No. (in ₹)
Prakash Shikshan Mandal, Shikshan Mandal, Urun, Islampur,
(i) Two percent of average net profit of the company as per Sub-section(5) of Section135 37,13,36,459 Urun, Islampur, Sangli, Mh Mandal Sangli, Mh 415409
(ii) Total amount spent for the Financial Year (FY2023) 37,21,54,278 6. Ambulance- 480001 26-12-2022 9,25,420 CSR00015655 Riya Kalyan Riya Kalyan Aum
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 8,17,819 Riya Kalyan Aum Shiksha Aum Shiksha Samiti,
Samiti, Pathadhana, Shiksha Samiti Pathadhana,
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Nil Chandangaon, Ward No. Chandangaon, Ward
Years, if any 38, Chhindwara (M.P.) No. 38, Chhindwara
(v) Amount available for setoff in succeeding Financial Years [(iii)-(iv)] 8,17,819 (M.P.) 480001
7. Ambulance - 494226 22-12-2022 9,25,367 CSR00011520 Saathi Samaj Saathi Samaj Sevi
Note: Saathi Samaj Sevi Sevi Sanstha Sanstha, Village-
In addition to CSR Spend of ₹ 37,21,54,278, the Company has spent ₹ 2,09,940 which pertains, to the interest income Sanstha, Village- kumharpara, Post-
earned by the implementation agencies on funds provided to them under CSR for FY2023 towards CSR activities and the
same is not included in point (ii) and (iii) of the above table. kumharpara, Post-Girola, Girola, Kondagaon
Kondagaon 494226
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial 8. Ambulance - 732101 30-12-2022 9,23,483 CSR00044089 Haiderpur Haiderpur Shelter of
Years: Haiderpur Shelter of Shelter of Malda, Maheshmati
Malda, Maheshmati (West), Malda (West), Behind Bikram
Amount Balance Amount transferred to a Behind Bikram Club, P.S. Club, P.S. Englishbazar,
Amount
transferred Amount in
Amount
Fund as specified under
remaining to
Englishbazar, P.O. + Dist. P.O. + Dist. Malda, Pin-
to Unspent Unspent Schedule VII as per second Malda 732101 (W.B)
Preceding Spent in the be spent in
Sl. CSR Account CSR Account proviso to Sub-section (5) Deficiency,
Financial Financial succeeding 9. Ambulance- 273015 26-12-2022 9,18,266 CSR00038975 Guru Sri Guru Sri Gorachcha
No. under Sub- under Sub- of Section 135, if any if any
Year(s) Year Financial Guru Sri Gorachcha Gorachcha Nath Chikatsalya, Shri
section (6) of section (6) of
(in ₹) Amount Date of Years
Section 135 Section 135 Nath Chikatsalya , Shri Nath Gorakhnath Mandir,
(in ₹) Transfer (in ₹)
(in ₹) (in ₹) Gorakhnath Mandir, Chikitsalaya Gorakhnath, Gorakhpur,
1 FY2021-2022 7,85,94,000 195 7,85,93,805 Nil Nil 195 Nil Gorakhnath, Gorakhpur UP - 273015
10. Ambulance- 834003 15-03-2023 9,53,533 CSR00000812 Bharat Ranchi Branch,
Bharat Sevashram Sevashram Tupudana, Devi
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility
Sangha, Ranchi Branch, Sangha Mandap Road, P.O.
amount spent in the Financial Year: Tupudana, Devi Mandap NIFFT-HATIA, RANCHI,
Yes / No Road, P.O. NIFFT-HATIA, PIN : 834003
RANCHI
If Yes, enter the number of Capital assets created/acquired: 12
11. Ambulance 678581 18-10-2022 9,24,941 CSR00002488 Swami Swami Vivekananda
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility Swami Vivekananda Vivekananda Medical Mission
amount spent in the Financial Year: Medical Mission Medical (Attappady), Durga
(Attappady), Durga Sangh Mission Sangh Mandir, Agali
Mandir, Agali P.O. Agali, PO, Agali, Kl10, Kl,
Kl10 678581

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Executive Summary of Impact Assessment Reports

Short particulars of the Pincode Amount
Date of
property or asset(s) of the of CSR
Sl.
[including complete property
creation
amount
Details of entity/ Authority/beneficiary A brief outline of Projects for which Impact Assessment was carried out and the executive summary of
No. (dd-mm- of the registered owner*
address and location of or
yyyy)
spent the Impact Assessment Reports are given below:
the property] asset(s) (in ₹)
1. COVID-19 Relief - Distribution of medical Under this flagship initiative, MMFSL initiated 6
CSR beds and supplies: interventions in several states throughout India in
Registration Registered
number, if
Name
address To fight the COVID 19 pandemic, MMFSL as a partnership with regional implementing partners (IP).
applicable part of their CSR initiative implemented Covid i. Drivers Training for Freshers
12. Ambulance- 517520 18-10-2022 9,20,570 CSR00003911 Abhaya Abhaya Kshethram 19 Relief project, distributed supplies to various
Abhaya Kshethram Kshethram Charitable Trust, government hospitals, medical centres, medical ii. Road Safety Awareness Training for Drivers
Charitable Trust, Charitable Bismilla, Near colleges and covid care centers.
Bismilla, Near Railway Trust Railway Gate, iii. Financial Planning Training for Drivers
Gate, Renigunta, Renigunta, Andhra The project was implemented through a non- iv. Scholarship for Drivers’ Children
Andhra Pradesh Pradesh-517520 profit implementation partner (IP), People to
TOTAL 1,10,88,207 People Health India Foundation (PPHF). v. Insurance for Drivers


Objective of the project: To enable the vi. Auto Mechanic Training for women
* The above acquired capital assets are held either by a company established under Section 8 of the Act, or a Registered Public
Trust or Registered Society, having charitable objects and CSR Registration Number as prescribed under the Companies (Corporate hospitals to be in preparedness for combating
Social Responsibility Policy) Rules, 2014. the COVID 19 Pandemic by providing equipment Objective of the program: To address
and consumables. professional, financial, and familial level challenges
9. Specify the reason(s), if the Company has failed to spend two per cent of the average net faced by the driver community and their families.
profit as per Section 135(5) : Project period: June 2021 to September 2021
Project Period: April 2021 to March 2022
Not Applicable for FY2023 Total outlay: ₹ 1.03 crores.
Total Outlay spent: ₹ 10.57 crores.
Impact Assessment Agency: Think Through
Consultancy (TTC) Impact Assessment agency: Think through
Consultancy
Key Findings:
Dhananjay Mungale Ramesh Iyer Key Findings:
• 150 beds with linen, PPE kits and cleaning and
Chairman- CSR Committee Vice-Chairman & Managing Director hygiene kits were provided to 3 Covid Care i. Driver Training for Freshers:
DIN:00007563 DIN:00220759 Centers viz Christ Hospital in Chandrapur, • 76% of trained candidates studied upto
Ma ha r a sh t r a ; G u w a hat i M e dic a l Co l l e ge Grade XII a ssuring right selec tion of
Place: Mumbai in Guwahati, A ssam and Sadar Hospital in beneficiaries
Date: 28th April 2023
Chaibasa, Jharkhand. • 95% respondents were satisfied with the
• PPE kits and cleaning and hygiene kits helped training session & on road practice
the centers/ hospit al s prepare for covid • All candidates received (NSQF) L4 level
pandemic. certification post-training
• Hospital s could maintain covid protocol s • 98% respondents had been able to gain
effectively without compromising their own jobs and equal% of respondents revealed
health as well as that of patients. that now their family looked up to them
• Beds enabled hospitals to accommodate more with pride and respect.
Covid 19 patients. • 89% respondents have observed a steady
• The other equipment donated by Mahindra increase in income
Finance were vital and helped the hospitals to
render quality health care. ii. Road Safety Training
• Despite travel restrictions between states, • 95% respondents attended a training on
the IP was successfully able to coordinate and road safety for the first time
distribute the resources to the target location • 100% of respondent found the training
within the planned timeline. relevant and useful
• Implementation a genc y implemented the • 79% of respondent s su g gested that
project as per the ToR documented in the MOU the training has reduced the number of
• Medical equipment and beds are currently accidents
being u sed in other wards namely in • 71% agree to have brought changes in
e m e r ge n c y, p e d iat r i c w a r d s a n d p at i e n t their driving after the program
waiting areas.
• 83% respondents acknowledged that they
had learned important life skills
2. Swabhimaan:
• Enhanced knowledge of basic
“SWABHIMAAN-a holistic driver development
vehicular maintenance, first aid, fatigue
programme” is a flagship CSR initiative of Mahindra
mana gement, and the impor t ance of
Finance. This is a multi-year ongoing programme.
taking breaks

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iii. Financial Planning v. Insurance Awareness Campaign: Annexure III

• 87% drivers had studied upto Grade XII • Acco rding to t he qu a n t i t at i ve dat a ,
indicating right selection of beneficiaries 75.61% of the respondents did not own
Form No. MR-3
• 55% of drivers attended a training on any insurance policy prior to the insurance Secretarial Audit Report
financial planning for the first time awareness campaign and only 51.22%
For the Financial Year ended 31st March 2023
of the respondents were aware of the
• 75% respondents felt more conf ident
benefits of the policy before the insurance [Pursuant to Section 204(1) of the Companies Act, 2013 and
in their ability to handle f inances post
awareness campaign. Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
attending the training
• 100% of the respondents were satisfied
• The respondents were able to understand To,
with the insurance campaign.
about digital frauds like risks associated The Members,
with giving out personal information and • 100% of respondents were satisfied with Mahindra & Mahindra Financial Services Limited
how to avoid such situations the trainers’ delivery of knowledge. Gateway Building, Apollo Bunder, Mumbai - 400 001
• 100% respondents reported a habit of We have conducted the Secretarial Audit of the Investment is not applicable to the Company
vi. Auto Mechanic Training for women:
savings post training compliance of applicable statutory provisions and the during the Audit Period);
• T his programme f ocu sed on women,
adherence to good corporate practices by Mahindra
iv. Scholarship for Drivers’ Children empowering them by teaching skill sets (v) The following Regulations and Guidelines
& Mahindra Financial Services Limited (hereinafter
to make them financially independent. The prescribed under the Securities and Exchange
• The scholarship was distributed among called the Company). Secretarial Audit was conducted
main objective was to provide them with Board of India Act, 1992 (‘SEBI Act’): -
3200 students belonging to standard in a manner that provided us a reasonable basis
skills to increase their employability.
1 st till post graduation selected from for evaluating the corporate conducts/ statutory (a) The Securities and Exchange Board of India
4,017 applicants • 60% of the respondents were mostly 12th compliances and expressing our opinion thereon. (Substantial Acquisition of Shares and
pass (60%) and very few (2.5%) were 10 th Takeovers) Regulations, 2011;
• 10 0% respondent s revealed that
pass and (2.5%) were post graduate. Auditor’s Responsibility:
the verif ication process was done in a (b) The Securities and Exchange Board
transparent manner leaving no space • 80% of the women were unemployed. Very Our responsibility is to express an opinion on the of India (Prohibition of Insider Trading)
for mishandling the documents and the few (2%) were working in companies and a compliance of the applicable laws and maintenance of Regulations, 2015;
amount. few (5%) worked in automotive companies. records based on audit. We have conducted the audit
• NSDC curriculum was followed and was in accordance with the applicable Auditing Standards (c) The Securities and Exchange Board of India
• S chol a r ship proje c t ena ble d dr iver s’
completed within the stipulated 200 hours issued by The Institute of Company Secretaries of India. (Issue of Capital and Disclosure Requirements)
children to continue their education in
The Auditing Standards requires that the Auditor shall Regulations, 2018; (Not Applicable to the
spite of hardships faced by the family,
Overall findings of Swabhimaan: comply with statutory and regulatory requirements Company during the Audit Period)
especially during pandemic phase
• Swabhimaan program as a whole is helping and plan and perform the audit to obtain reasonable (d) The Securities and Exchange Board of India
• The scholarship fund was used to pay for
drive self-respect to the largely ignored assurance about compliance with applicable laws and (Share Based Employee Benefits and Sweat
school/ tuition fees/ educational material
driver community maintenance of records. Equity) Regulations, 2021;
• The program has enabled parents to fulfil
their aspirations of sending their children • Enou gh signs that inter ventions a re Based on our verification of the Company’s books, (e) The Securities and Exchange Board of
to private schools. showing positive outcomes as desired. papers, minute books, forms and returns filed and India (Issue and Listing of Non-Convertible
other records maintained by the Company and also Securities) Regulations, 2021;
the information provided by the Company, its officers,
agents and authorised representatives during the (f) The Securities and Exchange Board of India
conduct of secretarial audit, we hereby report that in (Registrars to an Issue and Share Transfer
our opinion, the Company has, during the audit period Agents) Regulations, 1993 regarding the
covering from April 01, 2022 to March 31, 2023 Companies Act and dealing with client;
(hereinafter called the ‘Audit Period’) complied with (g) The Securities and Exchange Board of India
the statutory provisions listed hereunder and also (Delisting of Equity Shares) Regulations,
that the Company has proper Board processes and 2021; (Not Applicable to the Company
compliance mechanism in place to the extent and in during the Audit Period);
the manner reporting made hereinafter:
(h) The Securities and Exchange Board of India
We have examined the books, papers, minute books, (Buy-back of Securities) Regulations, 2018.
forms and returns filed and other records maintained (‘Buy-back Regulations’) (Not Applicable to
by the Company for the financial year ended on the Company during the Audit Period) and
March 31, 2023 according to the provisions of:
(i) The Securities and Exchange Board of
(i) The Companies Act, 2013 (‘the Act’) and the rules India (Depositories and Participants)
made there under; Regulations, 2018.
(ii) The Securities Contracts (Regulation) Act, 1956 We have also examined compliance with the applicable
(‘SCRA’) and the rules made there under; clauses of the following:
(iii) The Depositories Act, 1996 and the Regulations (i) Secretarial Standards issued by The Institute of
and Bye-laws framed there under; Company Secretaries of India.
(iv) Foreign Exchange Management Act, 1999 and (ii) The Securities and Exchange Board of India
the rules and regulations made thereunder to the (Listing Obligations and Disclosure Requirements)
extent of External Commercial Borrowings and Regulations, 2015 and amendments made
Overseas Direct Investments (Foreign Direct thereunder. (‘Listing Regulations’)

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During the period under review the Company has Board of Directors that took place during the audit ‘Annexure A’
complied with the provisions of the Act, Rules, period were carried out in compliance with the
Regulations, Guidelines and Standards etc. made provisions of the Act and Listing Regulations. To,
there under. The Members,
Adequate notice is given to all directors to
We further report that, having regard to the schedule the Board Meetings, agenda and Mahindra & Mahindra Financial Services Limited
compliance system prevailing in the Company and detailed notes on agenda were sent at least Gateway Building, Apollo Bunder, Mumbai -400 001
on the examination of the relevant documents and seven days in advance (except few meetings were Our report of even date is to be read along with this letter.
records in pursuance thereof, on test-check basis, convened at a shorter notice for which necessary
the Company has complied with the following approvals were obtained as per the applicable 1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility
laws applicable specifically to the Company: provisions), and a system exists for seeking and is to express an opinion on these secretarial records based on our audit.
obtaining further information and clarifications 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
Reserve Bank of India Master Direction/Guidelines,
on the agenda items before the meeting and for about the correctness of the contents of the Secretarial records. The verification was done on test basis to
as applicable to Non-Banking Financial Companies,
meaningful participation at the meeting. ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,
including the following:
All decisions at Board Meetings and Committee we followed provide a reasonable basis for our opinion.
(i) The Reserve Bank of India Act, 1934.
Meetings were carried out unanimously as 3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of
(ii) Master Direction-Non-Banking Financial recorded in the minutes of the meetings of the the company.
Companies Acceptance of Public Deposits Board of Directors or Committee of the Board, as
(Reserve Bank) Directions, 2016. the case may be. 4. Wherever required, we have obtained the Management representation about the compliance of laws, rules
(iii) Master Direction-Non-Banking Financial and regulations and happening of events etc.
 e further report that there are adequate
W
Company-Systemically Important Non-deposit 5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards
systems and processes in the Company
taking Company and Deposit taking Company is the responsibility of management. Our examination was limited to the verification of procedures on
commensurate with the size and operations of the
(Reserve Bank) Directions, 2016. test basis.
Company to monitor and ensure compliance with
(iv) Master Direction-Non-Banking Financial applicable laws, rules, regulations, and guidelines. 6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the
Company Returns (Reserve Bank)
We further report that during the audit period efficacy or effectiveness with which the management has conducted the affairs of the company.
Directions, 2016.
the Company has:
(v) Raising Money through Private Placement For Makarand M. Joshi & Co.
of Non-Convertible Debentures (NCDs) by 1) Received order dated 22nd September 2022 Company Secretaries
NBFCs - RBI Guidelines. from Reserve Bank of India (“RBI”) directing the
(vi) Master Circular–Non-Banking Financial Company to immediately cease carrying out of Makarand M. Joshi
Companies – Corporate Governance (Reserve any recovery or repossession activity through
Partner
Bank) Directions, 2015. outsourcing arrangements, till further orders.
The said prohibition was lifted by RBI effective FCS: 5533
(vii) Scale Based Regulation for Non-Banking CP: 3662
4th January 2023, basis the submissions
Financial Companies Place: Mumbai
made by the Company and its commitment to PR: 640/2019
We further report that strengthen its recovery practices/outsourcing Date: 28th April 2023 UDIN: F005533E000218350
arrangements and tighten the process of
The Board of Directors of the Company is duly
onboarding third party agents and strengthen
constituted with proper balance of Executive
accountability framework as per the Board
Directors, Non-Executive Directors, and Independent
approved action plan.
Directors. The changes in the composition of the
2) Issued and allotted Debentures on private placement basis in various tranches, the details of which
are as follows:

Face Value per

Sr.
Particulars Quantity Debenture-
No
(Amount in E)
1 Secured, Rated, Listed, Redeemable Non-convertible Debentures 34,320 10,00,000
2 Secured, Rated, Listed, Redeemable Non-convertible Debentures 2,53,500 1,00,000
3 Secured, Rated, Listed, Redeemable Non-convertible Debentures – Partly Paid up 2,25,000 1,00,000
4 Secured, Rated, Listed, Redeemable Principal Protected Market Linked Non- 4,995 10,00,000
Convertible Debentures.
5 Senior, Secured, Redeemable, Rated, Listed, Principal Protected Non-Convertible 11,650 1,00,000
Market Linked Debentures
6 Unsecured, Rated, Listed, Redeemable Non-convertible Subordinated (Tier II) Debentures. 380 1,00,00,000
7 Zero Coupon, Secured, Rated, Listed, Non-convertible Debentures. 3,917 10,00,000

For Makarand M. Joshi & Co.

Company Secretaries
Makarand M. Joshi
Partner
FCS: 5533
CP: 3662
Place: Mumbai PR: 640/2019
Date: 28th April 2023 UDIN: F005533E000218350
This report is to be read with our letter of even date which is annexed as ‘Annexure A’ and forms an integral
part of this report.

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Annexure IV 10. @@Appointed as Company Secretary of the Company w.e.f. 1 st February 2022. Since Ms. Brijbala Batwal was associated for part
of FY2022 percentage increase in remuneration is not reported.
Details pertaining to the remuneration as required under Ms. Brijbala Batwal was earlier associated with the Mahindra & Mahindra Limited (“M&M”) wherein she was granted 5,295
Section 197(12) read with Rule 5(1) of Companies ESOPs of M&M at an exercise price of ₹ 5/- per share. While she is paid remuneration from the Company, out of 4,236 vested
ESOPs of M&M, she has exercised 1,059 ESOPs in FY2023.
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
I. The ratio of the remuneration of each Director in FY2023 was 27.48% whereas the increase
The remuneration of each Director, Chief Financial Officer and Company Secretary, percentage increase in their to the median remuneration of the employees in the managerial remuneration in FY2023 was
remuneration during FY2023 and ratio of the remuneration of each Director to the median remuneration of of the Company for the Financial Year: 23.13%.
the employees of the Company for FY2023 is as under:
The median remuneration of employees of the
Company during FY2023 was ₹ 0.05 crores and Key parameters for variable component of
Ratio of the remuneration
Remuneration Remuneration % Increase/ % Increase/ remunera- ratio of the remuneration of each Director to the
of Director/ of Director/ (Decrease) (Decrease) tion of each median remuneration of the employees of the The remuneration of the Executive Directors is
KMP for KMP for in Remunerati- in Remunera- Director Company for the financial year is provided in the decided basis the individual performance, Company
financial year financial year on in the tion in the to median
2022-23 2022-23 financial year financial year remuneration
above table. performance, inflation, prevailing industry trends
Name of Director/ KMP Designation (₹ in crores) (₹ in crores) 2022-23 2022-23 (Including and benchmarks. The remuneration of eligible
(Excluding (Including (Excluding (Including perquisite II. The percentage increase in the median Non‑Executive Directors consists of commission
perquisite perquisite perquisite perquisite value of
value of value of value of value of ESOPs
remuneration of employees in the Financial and sitting fees. While deciding the remuneration,
ESOPs ESOPs ESOPs ESOPs exercised) of Year: various factors such as Director’s participation
exercised) exercised) exercised) exercised) employees for
In the financial year there was an increase in Board and Committee Meetings during the
the FY2023
of 43.89% in the median remuneration of year, other responsibilities undertaken, such as
Dr. Anish Shah* Non-Executive Chairman NIL NIL NIL N.A. N.A. employees, taking into consideration employees Membership or Chairmanship/Chairpersonship
Mr. Dhananjay Mungale Independent Director 0.51 0.51 8.51 8.51 10.30 who were in employment for the whole of FY2022 of Committees and such other factors as the
and FY2023. Nomination and Remuneration Committee
Mr. C. B. Bhave Independent Director 0.50 0.50 8.70 8.70 10.10
deemed fit were taken into consideration.
Ms. Rama Bijapurkar Independent Director 0.46 0.46 9.52 9.52 9.29 III. Number of permanent employees on the The increment given to each individual employee
Mr. Milind Sarwate@ Independent Director 0.54 0.54 14.89 14.89 10.91 rolls of the Company: is based on the employees’ potential, experience
Dr. Rebecca Nugent@ Independent Director 0.43 0.43 13.16 13.16 8.69 There were 26,329 permanent employees on the as also their performance and contribution to the
rolls of the Company as on 31 st March 2023. Company’s progress over a period of time.
Mr. Amit Kumar Sinha# Non-Executive Director NIL NIL N.A. N.A. 0.00
Mr. Siddhartha Non-Executive Director 0.34 0.34 N.A. N.A. 6.87 IV. Average percentile increase already made V. Affirmation that the remuneration is as per
Mohanty^ in the salaries of employees other than the the Remuneration Policy of the Company:
Mr. Diwakar Gupta## Independent Director 0.11 0.11 N.A. N.A. 2.22 managerial personnel in the last Financial The remuneration paid/payable is as per the Policy
Mr. Ramesh Iyer** Vice-Chairman & 7.16 7.16 17.76 (4.91) 144.65 Year and its comparison with the percentile on Remuneration of Directors and Remuneration
Managing Director increase in the managerial remuneration Policy for Key Managerial Personnel, Senior
and justification thereof and point out if Management and other Employees of
Mr. Amit Raje^^ Whole-time Director 4.09 8.44 N.A. N.A. 170.51
there are any exceptional circumstances for the Company.
Mr. Vivek Karve Chief Financial Officer 3.22 3.22 37.02 37.02 N.A. increase in the managerial remuneration:
Ms. Brijbala Batwal@@ Company Secretary 0.78 0.91 N.A. N.A. N.A. Average percentage increase made in the salaries
of employees other than the managerial personnel
1. The remuneration of Independent Directors includes sitting fees and commission.
2. The calculations are based on employees who were on the rolls of the Company for the whole of FY2022 and FY2023.
3. *Dr. Anish Shah, Non-Executive Chairman, being in the whole-time employment of Mahindra & Mahindra Limited ("M&M"), the
Holding Company, does not receive any remuneration from the Company.
4. @The percentage increase in the remuneration of Mr. Milind Sarwate and Dr. Rebecca Nugent for FY2023 is higher than
the other Non-Executive Directors on account of sitting fees paid to them towards Committee meetings, of which they are
members and whose frequency has been higher as compared to previous year.
5. #Mr. Amit Kumar Sinha, Non-Executive Director, being in the whole-time employment of Mahindra & Mahindra Limited (M&M),
the Holding Company does not receive any remuneration from the Company. Further, he was appointed as Non-Executive Non-
Independent Director of the Company w.e.f. 23rd April 2021 and will cease as a Director effective close of 33rd Annual General
Meeting scheduled to be held on 28 th July 2023.
6. ^Sitting Fees and Commission is paid to Life Insurance Corporation of India.
7. ##Mr. Diwakar Gupta was appointed as an Independent Director w.e.f. 1 st January 2023, hence percentage increase in
remuneration is not reported.
8. **During FY2023, Mr. Ramesh Iyer has not exercised any ESOPs granted to him. In addition to the above remuneration, Mr.
Ramesh Iyer has received an amount of ₹ 89.23 lakhs during FY2023 upon settlement of 4th vesting of the employee’s
phantom stock options granted by Mahindra Insurance Brokers Limited, subsidiary of the Company. Mr. Iyer is entitled to an
aggregate incentive of ₹ 31.96 Lakhs, to be paid in FY2024 and FY2025.
9. ^^Mr. Amit Raje ceased to be a Whole-time Director (“WTD”) and Key Managerial Personnel w.e.f. 28 th July 2022. Mr. Raje ceased
to be in employment of the Company w.e.f 30 th November 2022. Since he was associated for part of FY2023 percentage
increase in remuneration is not reported.
Mr. Raje was earlier associated with the Holding Company viz. Mahindra & Mahindra (“M&M”) as Executive Vice President –
Partnerships & Alliances, wherein he was granted 97,783 ESOPs of M&M at an exercise price of ₹ 5/- per share. While he was
paid remuneration from the Company during his stint with the Company as WTD, out of 43,458 ESOPs of M&M vested and
exercisable by him, he exercised 34,028 ESOPs during FY2023. The unvested options on the date of his separation from the
Company, have lapsed.

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Annexure V enables customers to initiate conversations, Company would be better prepared to address
apply for a vehicle loan, check their loan any delinquencies that might occur.
Conservation of Energy, Technology Absorption and Foreign application status, along with a host of other
• Customer Mobile Application (Customer
services ensuring that customers can access
Exchange Earnings and Outgo the Company ser vices on-the-go. Ef for t s
App): Customer App for lending and Fixed
Deposit cu stomers ha s seen a signif icant
are underway to make BOT available in more
growth in users from 7.1 lakh registered user
The particulars in respect of conservation of energy, During the year, the Company has sent 17,500 regional languages. Your Company has also
base in FY2022 to 8.7 lakh users in FY2023.
technology absorption and foreign exchange earnings kg. of paper waste generated for responsible revamped its WhatsApp UI, segregating the
Users are adopting digital channels including
and outgo, as required under Section 134(3)(m) of disposal and recycling. In return, the Company menu options into critical bucket list, making it
mobile app for availing various services. The
the Companies Act, 2013 read with Rule (8)(3) of the has received 53,218 Swachh Bharat Points which more user friendly.
app ensures ea sy access to vehicle loan
Companies (Accounts) Rules, 2014 for the FY2023 were redeemed in exchange for environmentally • Used Car Digi Loans : Your Company has details, EMI payments, tracking loan status and
are set out hereunder: friendly product like 875 cloth bags from the l aunched a specialised end-to - end digital more. This year the Customer App has been
vendor partner. The Company has also received jou r ney na me d ‘ Us e d C a r D ig i Lo a ns’ in further enhanced with new features like loan
(A) Conservation of Energy wheat base paper in exchange of paper waste. association with Car&Bike (by Mahindra First restructuring, download sanction letter for loan
Your Company’s operations are not energy With the above initiatives, your Company was able Choice Wheel s) and Rupy y (by CarDekho), restructuring in app, applying for life/health &
intensive. However, adequate measures have been to ensure zero waste to Land fill. the leading brands in the used car industry, two-wheeler insurance etc. The Customer App
initiated across all branches of the Company to which provides customised loan offers to the support process has been automated with call
reduce energy consumption as your Company (ii) The steps taken by the Company for utilising customers enabling them to take faster buying centre leading to faster resolution of customer
is committed to sustainable business practices alternate sources of energy: decisions. The integrated system seamlessly issues and higher customer satisfaction.
by contributing to environment protection and initiates loan application procedure with the
Your Company is evaluating various options
considers energy conservation as one of the Company thereby making the entire process (ii) The benefits derived like product improvement,
available for harnessing solar power as an
strong pillars of preserving natural resources. qu ick a nd convenient f or t he cu s tomer. cost reduction, product development or import
alternate source of energy, to be used at its
Used Car Digi loans ha s the capabilit y of substitution:
various branches and offices.
(i) The steps taken or impact on conservation of successfully disbursing loans within few hours
• The digital collection from customers crossed
energy: with the help of specialised underwriting and
(iii) The capital investment on energy conservation ₹ 8,400 crores which is 40% more than the
The steps taken on conservation of energy covers: processing teams, equipped with 15 state-
equipment’s: previous year. Digital collection has also led
of-the-art fintech tools. Partners will have a
(a) Use of Light Emitting Diode (“LED”) lights in new Your Company has implemented various projects to cost optimisation by migrating the cash
real-time visibility of the application status and
and existing branches: towards Energy Conservation to the tune of cu stomers to digital mode. The payment
sanctioned loan offer allowing them to delight
₹ 1.71 crores. These projects include use of collection through Mahindra Finance (“MF”) App
• L
 ED Light s have been inst alled at 1,1 37 their customers with swift vehicle delivery.
LED Lights, BLDC fans, use of 5 star BEE air contributes to 16% (average) of the overall
branches replacing conventional lighting and • Digital Debt Collection services: To make the digital collection. The App has also made it
conditioners etc.
the same has been monitored in terms of payment convenient, faster and easier for the easy for customers to access loan account
electrical consumption and expenses, leading customers and also to make it available 24 X and Fixed Deposit details and track their new
(B) Technology Absorption:-
to savings of 1,461 Megawatts. Your Company 7, your Company has provided online payment loan application. Various customer servicing
extensively monitors its energy consumption Your Company has been at the forefront with
services to its customers via its own website features available on App have resulted in saving
and Green House Gas (“GHG”) emissions. respect to implementing the latest information
and mobile application viz. Mahindra Finance time and money of the customers incurred in
technology and tools aimed at enhancing
• R
 eplacement of old air-conditioners with 5-star Customer App. The Company also has tie-ups visiting branch offices of the Company.
customer experience.
Bureau of Energy Eff iciency (“BEE”) rated with different collection agencies, banks and • During F Y2023, WhatsApp Bot users have
machines across 223 branches with R-410A Your Company has been taking several measures other payment partners like Bharat Bill Payment increased to 3.5 lakh registered users, an
gas, which helps in reducing Ozone depletion. to promote and encourage digital collections. The System (“BBPS”) for debt collection. With BBPS increase of 250% vis-à-vis FY2022.
The Company has taken the initiative to use Company is saving borrowers time by digitising a customer can make use of any third-party
• Collection through BBPS crossed ₹ 630 crores,
environment friendly gas in Air Conditioners its business processes. Digital channels facilitate application of debit card, net banking, e-wallets,
which is 79% of total digital collection for March
during the year. Replacing old air‑conditioning communication, which leads to increased customer U PI etc . to make EMI payment s thereby
2023, registering a growth of 53% over previous
systems with updated versions has also led to retention and more consistent on-time payment. leading to an increase in digital collections.
year. Under repayment category your Company
savings of 958 Megawatts. Further, your Company has also empowered
stood 1st as a biller in terms of transaction value
i) The efforts made towards technology absorption: its Field Agents to collect EMI digitally from
• R
 epl acemen t o f co nven t io na l f a ns w i t h and stood 7th as a biller in terms of transaction
Initiatives taken by the Company in Information the customers through QR Scan and Pay in
Brushless Direct Current Motor (“BLDC”) fans. count for the month of February 2023.
Technology for improved business efficiency:- B2B App. Customers who prefer self‑service
During the year, 74 conventional fans were can promptly avail digital alternatives without
replaced with BLDC fans across dif ferent (iii) In case of imported technology (imported
• Agent Institution for Bharat Bill Payment any necessity to connect with the collection
branches leading to saving of 2.9 Megawatts of during the last three years reckoned from the
System Ecosystem: By becoming an Agent agent thus enhancing customer satisfaction
electricity every year. beginning of the Financial Year):
Institution for Bharat Bill Payment System and improvement in operational efficiency as
the same number of employees would be able Not Applicable.
(“BBPS”), your Company has empowered its
(b) Recycling of waste generation at various locations: to service more accounts. Your Company’s
Mobile App Customers with a single platform
entire lending process is digitally enabled; (iv) The expenditure incurred on Research and
The Company has recycled more than 59.5 tonnes via which they can access a variety of recharge
by strengthening collection capabilities and Development: Your Company has not incurred
of E-waste through registered recyclers as per and bill payment options.
embracing Digital debt collection services, your any expenditure on Research and Development
the E-waste Management and Handling Rules • WhatsApp Bot : Your Company ha s al so during the year under review.
in FY2023. started integrating its WhatsApp BOT as a
vir tual assistant. Built in 2 languages, Bot

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(C) Foreign Exchange Earnings and Outgo Annexure VI

There was no foreign exchange earning during the year under review. Details of foreign exchange outgo
during the year under review is as follows: Policies
₹ in crores
Your Company is committed to adhere to the highest possible standards of ethical, moral and legal business
For the Financial For the Financial conduct. Considering this, your Company has formulated certain policies, inter-alia, in accordance with the
Total Foreign Exchange Earnings and Outgo Year ended Year ended requirements of the Companies Act, 2013 ("the Act"), SEBI (Listing Obligations and Disclosure Requirements)
31st March 2023 31st March 2022
Regulations, 2015 ("Listing Regulations"), SEBI (Prohibition of Insider Trading) Regulations, 2015, SEBI (Share
Foreign Exchange Earnings NIL NIL Based Employee Benefits and Sweat Equity) Regulations, 2021 and applicable RBI Master Directions, Guidelines
Foreign Exchange Outgo 34.2 65.5* and Circulars issued from time to time. The policies as mentioned below are available on the Company’s website
and can be accessed in the Corporate Governance section at the web-link: https://www.mahindrafinance.
* Includes equity investment of ₹ 34 crores in Mahindra Ideal Finance Limited during FY2022.
com//investors/disclosures-reg-46-62/corporate-governance#MMFSL-policies. These policies are reviewed
periodically and are updated as and when needed. During the year, the Company had revised and adopted some
of its Policies in order to inter-alia, align the same with statutory changes. A brief description about some of the
For and on behalf of the Board Key Policies adopted by the Company is as under:

Dr. Anish Shah

Summary of the key changes made
Place: Mumbai Chairman Sr.
Name of the Policy Brief Description/Objective to the Policies during FY2023 and
No.
Date: 28th April 2023 DIN: 02719429 up to the date of this Report

1 Policy for The Policy was adopted by the Board during FY2022 in No change was made to the Policy
appointment of accordance with the provisions stipulated in RBI Circular during the year.
Statutory Auditors dated 27th April 2021 issued by the Reserve Bank of India.

2 Anti-bribery and Anti- The Policy was adopted by the Board during FY2022 No change was made to the Policy
corruption (ABAC) and designed to provide a framework for ensuring during the year.
Policy compliance with various legislations governing bribery
and corruption globally and provides guidance on the
standards of behaviour which the Company’s employees
must adhere to.

3 Policy on Co-Lending Pursuant to RBI notification, Board has adopted the The Board adopted the policy
Model Policy to improve the flow of credit to the unserved and during the year in compliance with
underserved sector of the economy and make available RBI notification.
funds to the ultimate beneficiary at an affordable cost.

4 Whistle Blower Policy The Vigil Mechanism as envisaged in the Act and Listing No change was made to the Policy
Regulations is implemented through the Whistle Blower during the year.
Policy to provide for adequate safeguards against
victimisation of persons who use such mechanism and
make provision for direct access to the Chairperson of the
Audit Committee.

5 Policy for This Policy requires the Company to make disclosure of Consequent to the changes in
determination of events or information which are material to the Company Key Managerial Personnel of the
Materiality of any as per the requirements of Regulation 30 of the Listing Company, the Policy was amended
Event/Information Regulations. to update the members forming
part of the Disclosure Committee.

6 Policy for determining The Policy is used to identify material subsidiaries of the No change was made to the Policy
Material Subsidiaries Company and to provide a governance framework for during the year.
such material subsidiaries.

7 Policy on Materiality The Policy has been framed in order to regulate all the No change was made to the Policy
of and Dealing transactions between the Company and its related parties. during the year.
with Related Party
Transactions

8 Policy on This Policy sets out the approach of the Company towards Policy was revamped to align with
remuneration for Key the Compensation of Key Managerial Personnel, Senior RBI Guidelines dated 29th April
Managerial Personnel, Management Personnel and other Employees of the 2022 including introducing
Senior Management Company. clawback/malus clause in the
Personnel and other Policy.
Employees

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Summary of the key changes made Summary of the key changes made
Sr. Sr.
Name of the Policy Brief Description/Objective to the Policies during FY2023 and Name of the Policy Brief Description/Objective to the Policies during FY2023 and
No. No.
up to the date of this Report up to the date of this Report

9 Policies on Sexual The Policy on Sexual Harassment for Women is for No change was made to the said 19 Business BRSR Policy, inter-alia, incorporates sustainability BRSR was adopted by the Board
Harassment for redressal of complaints received regarding sexual policies during the year. Responsibility and elements and aligns the Policy with National Guidelines in FY2023 to align with NGRBC
Women and Male harassment and compliance of other provisions as per the Sustainability Policy on Responsible Business Conduct (“NGRBC”). replacing the earlier Business
Employees Sexual Harassment of Women at Workplace (Prevention, ("BRSR Policy") Responsibility Report Policy.
Prohibition and Redressal) Act, 2013. The Company from a
good governance perspective, adopted a similar policy for 20 Policy for The Policy was framed with regard to the preservation of No change was made to the Policy
its male employees also. preservation of documents in physical and electronic mode. during the year.
documents
10 Internal Guidelines The Internal Guidelines on Corporate Governance (IGC) IGC was amended to include
on Corporate have been formulated to comply with the Reserve Bank of amendments made by the
Governance India (RBI) Master Directions dated 1st September 2016. Board to the terms of reference In addition to above policies, your Company has inter-alia, adopted Policies in compliance with Reserve Bank of
of Audit Committee pursuant India ("RBI") Scale Based Regulations, Master Directions, Guidelines, notifications /circulars issued by from time
to amendment in SEBI Listing to time . The Policies adopted by your Company during the year, include Policy for Internal Capital Adequacy
Regulations and amendment in Assessment Process (“ICAAP Policy”), Policy on Large Exposure Framework , Policy for adoption of enhanced
terms of reference of Stakeholders' regulatory framework and implementation plan for adhering to new set of regulations under Scale Based
Relationship Committee.
Regulations framework, Compliance Policy, Policy on Grant of Loans to Directors and Senior Officers etc.
11 Fair Practices Code This Code has been devised in accordance with the FPC was amended to inter-alia,
Reserve Bank of India guidelines on Fair Practices Code align with regulatory requirements.
to be adopted by Non-Banking Financial Companies while
doing lending business.

12 Code of Conduct for The Board of your Company has laid down two separate No change was made to the Codes
Directors and Code Codes of Conduct, one for Board Members and another during the year.
of Conduct for Senior for senior management and other employees of the
Management and Company. This Code is the central Policy document,
Employees outlining the requirements that the employees working
for and with the Company must comply with, regardless
of their location.

13 Dividend Distribution The Dividend Distribution Policy is adopted in compliance The Policy was amended to
Policy with Listing Regulations to guide the Company in making align with the Reserve Bank of
payment of dividends. India guidelines on declaration
of dividend as applicable to the
Company.

14 Code of Practices This Code has been formulated to ensure prompt, timely No change was made to the Policy
and Procedures for and adequate disclosure of Unpublished Price Sensitive during the year.
Fair Disclosure of Information (“UPSI”) which inter alia includes Policy for
Unpublished Price Determination of “Legitimate Purposes”.
Sensitive Information

15 Policy on This Policy includes the criteria for determining The said Policy was amended for
Appointment of qualifications, positive attributes and independence of strengthening the disclosures on
Directors and Senior a Director, identification of persons who are qualified to Corporate Governance, including
Management and become Directors and who may be appointed in the Senior policies on Board membership
succession planning Management Team in accordance with the criteria laid criteria, Board Diversity Policy,
for orderly succession down in the said Policy, succession planning for Directors Policy on criteria for determining
to the Board and the and Senior Management and Policy statement for Talent independence of Directors,
Senior Management Management framework of the Company. updating statutory amendments
and updation with regards to
Succession Planning.

16 Policy for This Policy sets out the approach of the Company towards No change was made to the Policy
Remuneration of the Compensation of Directors of the Company. during the year.
Directors

17 Corporate Social The Policy defines and lays down the guiding principles and The Policy was amended to inter-
Responsibility ("CSR") strategies implementing the Company’s CSR initiatives & alia, align the same with the
Policy outlines the Board’s vision and approach for undertaking regulatory provisions.
CSR and creating impact in the communities.

18 Archival Policy As per the Policy, the events or information which has No change was made to the Policy
been disclosed by the Company to the Stock Exchanges during the year.
pursuant to Regulation 30 of the Listing Regulations shall
be hosted on the website of the Company for a period of
5 years from the date of hosting.

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Management Discussion Economic review Outlook

Global economy According to the International Monetary Fund (IMF),

and Analysis The global economy demonstrated growth driven by

the resilience of labour markets, robust household
global growth is predicted to bottom out at 2.8% in
2023, and then grow to 3.0% in 2024. Along with
consumption, business investment, and a better-than- improvement in growth rate, inflation is expected to
expected response to the energy crisis in Europe. moderate from 8.7% in 2022 to 7.0% in 2023, before
Mahindra & Mahindra Financial Services pre-owned automotive vehicles, including tractors and reaching 4.9% in 2024. IMF identifies that inflation,
However, central banks globally were forced to raise
Limited commercial vehicles. The vision of MMFSL is to be a though moderating, has mostly been sticky. The
interest rates abruptly to curb the persistently high
– An overview leading and responsible financial solutions partner reduction reflects severe reversal in energy and food
inflation. The higher interest rate, and other global
of choice for Emerging India. prices, but core inflation (excluding food and energy
Mahindra & Mahindra Financial Services Limited headwinds like the Russia-Ukraine conflict, and the
(Mahindra Finance/MMFSL) is a subsidiary of the Our new businesses include SME lending, consumer resurgence of the COVID-19 situation in China had an prices) may not have peaked yet.
Mahindra Group (market capitalisation: ₹ 1.52 financing and leasing, and our strategic emphasis is impact on economic growth during the year. In summary, global growth continues to be uncertain
trillion as of 27th April 2023), one of India's leading on the rural and semi-urban markets. We have had an due to a multitude of economic and geopolitical
Although many of these factors are still relevant, the
business conglomerates. opportunity to serve over 9 million customers since factors. The sharp policy tightening over the last year
recent re-opening of China brings some respite and
our inception, relying on our extensive network spread has had some impact on the global financial sector
MMFSL is a non-banking financial company (NBFC) that could trigger a rapid rebound in activity.
across 1,386 offices covering 27 states and seven and the ability of authorities to take swift action may
provides a range of financial products and services to
union territories in India. Our 'AAA' credit rating is a be tested again.
individuals, rural customers, and MSMEs (micro, small,
sign of the inherent strength of our financial position
and medium enterprises) in India. Our Company’s
and parentage.
primary focus is on financing the purchase of new and Global growth forecast (%)

Particulars 2022 2023(F) 2024(F)

MMFSL Group structure World 3.4% 2.8% 3.0%
Advanced Economies 2.7% 1.3% 1.4%
- United States 2.1% 1.6% 1.1%
- Euro Area 3.5% 0.8% 1.4%
Emerging Markets and Developing economies 4.0% 3.9% 4.2%
- China 3.0% 5.2% 4.5%
Mahindra & Mahindra Limited
- India 6.8% 5.9% 6.3%

Source: International Monetary Fund (IMF), April 2023

52.16%

Indian economy average reservoir levels. The persistent efforts and

After the COVID-19 pandemic, India was quick to spending by the government towards rural areas are
get back on the pre-pandemic growth trajectory, expected to drive the upliftment of this sector.
Mahindra & Mahindra Financial
Services Limited surpassing the UK to become the fifth-largest economy The Consumer Price Index fell from 6.44% in February
in the world. As per the National Statistical Office, the 2023 to 5.66% in March 2023. Despite the moderation
Indian economy grew at 7.2% in FY2023, compared to in the last month of the fiscal year, Indian consumers
9.1% in FY2022. Although this is still a slowdown from faced an average inflation of 6.6% through FY2023.
the previous year due to the current global scenario, In response to this, the RBI took measures by hiking
the economy remained resilient due to solid domestic the rates cumulatively by 250 basis points to 6.50%
demand and an uptick in private consumption. since the beginning of the rate hike cycle in May 2022.
80%(1) 98.43%(2) 49% 51%(3) 51%(3) 58.2% 100% The economy underwent a gamut of wide-ranging Inflation is poised to decline.
structural and governance reforms, including
Mahindra Mahindra Mahindra Finance Mahindra Mahindra Mahindra Ideal Mahindra Outlook
Insurance Rural Housing USA LLC (Joint Manulife Manulife Finance Ltd. ECLGS extension, PMEGP extension, changes in the
Finance CSR
Brokers Limited Finance Limited venture with Investment Trustee Pvt. Ltd. (“MIFL”), Sri union budget, among others that strengthened its The enduring factors that fuel the long-term growth
("MIBL") ("MRHFL") Rabobank group Management Pvt. ("MMTPL") Foundation
Lanka fundamentals and financial markets. Capex by the of the economy are still intact, with a sizeable and
subsidiary) Ltd. ("MMIMPL")
central government increased by 63.4% in the first rapidly expanding middle-class leading the way in
eight months of FY2023 since the first quarter of consumer spending. India's domestic consumer market
FY2022, providing an impetus to the economy’s growth. is experiencing rapid growth, alongside its significant
Notes: industrial sector, establishing itself as an attractive
The rural economy is steady and improving
investment hub for MNCs operating in manufacturing,
1.  alance 20% with Inclusion Resources Pvt. Ltd. (IRPL), a subsidiary of AXA XL Group. The Company, on 21 st October 2022,
B progressively. The informal sector, disrupted due
has entered definitive documents to acquire a 20% equity stake in MIBL held by IRPL, subject to regulatory approvals. infrastructure, and services. Moreover, India is also
to the pandemic, is now seeing normalisation in the
Subsequent to the acquisition, MIBL will become a wholly-owned subsidiary of the Company. emerging to be a global hub for startups, attracting
labour force. In Q3 FY2023, the agricultural sector
2. Balance 1.57% held by MRHFL Employee Welfare Trust and employees.
substantial foreign investments due to its youthful
displayed resilience and was supported by the pick
population which includes a large GenX demographic,
3. Manulife Investment Management (Singapore) Pte. Ltd. holds 49% of the shareholding of MMIMPL and MMTPL. up in rabi sowing (6.4% higher than a year ago), the
and its technological advancements.
progress of the north-east monsoon and above-

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GDP trends in India (%) Credit disbursed to and by NBFCs

2019 6.1 35 Aggregate Credit by NBFCS Credit to NBFCs (% of GDP, RHS) 6

2020 30
4.2 5

25
2021 (6.6) 4

₹ lakhs crores
20

Per cent
2022 9.1 3
15
2023 7.2 2
10
Source: Ministry of Statistics and Programme Implementation (MOSPI)

Indian financial services industry 1

5

India's diversified financial services sector is undergoing machine learning, allowing entities to handle
0 0
rapid expansion and evolution as new companies massive data and evaluate real-time trends.
enter the market with distinct offerings. The industry 2013 2015 2017 2019 2021 H1:2023
• Financialisation of savings
expansion is supported by rising income, technological
innovations, and reforms by the government. The number of folios under equity, hybrid, index Notes: 
and solution-oriented schemes, wherein the Credit to NBFCs (% of GDP) for FY2023 (H1) is estimated based on NSO’s 1 st AE for FY2023 and credit by NBFCs as of
Growth drivers September 2022.
maximum investment is from the retail segment,
• Financial inclusion stood at about 11.5 crores as of 31 st March GDP refers to GDP at Current Market Prices (Base: 2011-12).
2023. According to CRISIL, the financialisation of
India’s financial inclusion index–an indicator of how Source: Reserve Bank of India (RBI)
savings is likely to accelerate, with the managed
well the financial services have been extended
funds industry anticipated to grow Assets Under
to the unbanked population stood at 56.4 in NBFCs’ credit to SCBs’ credit ratio and their growth rates
Management (AUM) to ₹ 315 lakhs crores by
March 2022, compared to 53.9 in March 2021. In
FY2027 from ₹ 135 lakhs crores in FY2022.
June 2023, RBI also launched financial inclusion
30 32.8
dashboard named as Antardrishti, a platform • Growing penetration of financial products
that will provide insights to assess and monitor
India already has the second-highest number of 18.5 12.5 16.7
the progress of financial inclusion. The national 20 15.7
smartphone users globally and has the second-

(%)
12.7
strategy for financial inclusion focuses on
largest internet user market. With the number
expanding the reach of financial literacy centres 10 14.5 7.3 9.7 13.0
of mobile and internet users on the rise, these
to every block in the country by March 2024. As 9.7
products are now more accessible and convenient
many as 25,000 post offices are set to be rolled 6.9 2.8 7.8 10.6 6.5 4.9 7.6
to customers, propelling industry growth. 0
out with core banking solutions, increasing the
accounts' interoperability. Moreover, the Union • Rising income FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Budget 2023 announced a focus on onboarding
Rising incomes drive demand for financial services
small businesses to digital financial services,
across all income brackets in India, including NBFCs' credit as a ratio to SCBS' Credit NBFCS Credit Growth (Y-o-Y) SCBS' Credit Growth (Y-o-Y)
further driving financial inclusion.
insurance and retail banking services. According Sources:
• Fintech to a forecast of high-net-worth individual (HNI)
1. Report on Trends and Progress of Banking in India, various issues.
growth figures published in the latest Henley
With the highest adoption rate of 87%, India is one
Global Citizens Report, the number of dollar 2. Handbook of Statistics on the Indian Economy, various issues
of the fastest-growing fintech markets globally.
millionaires and billionaires in India will grow by
Massive investments, innovation, growing internet NBFCs’ credit to industry registered a growth rate of 8.7% in January 2023, compared to 5.9% in January
80% over the next 10 years, compared to just
penetration, and the adoption of the Unified 2022, and credit to the services sector rose by 21.5% in January 2023 as against 5.7% a year ago; loans
20% in the US and 10% in France, Germany, Italy
Payments Interface (UPI) have contributed to to retail increased by 21.8% y-o-y in January 2023, up from 6.9% in January 2022, while credit growth to
and the UK.
the sector's growth. According to RBI, Central agriculture and allied activities improved to 14.4% in January 2023 from 10.4% a year ago.
Bank Digital Currencies (CBDCs) offer significant Non-banking financial companies
opportunities for fintech companies to create
Overview
innovative solutions that can be accessible by
those without internet access. NBFCs have solidified their position as an integral part
of the financial services system. They also complement
• Technology/digitalisation
the banking system in achieving the agenda of financial
The digital revolution in the banking, fintech inclusion. There has been a consistent rise in the credit
and payment systems is creating credit demand extended by NBFCs as a proportion of GDP, with the
for banks and NBFCs. Moreover, new business aggregate outstanding amount at ₹ 31.5 lakhs crores
models in this sector are now driven by advanced as of September 2022.
technologies such as artificial intelligence and

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Growth in credit disbursement by NBFCs Classification of NBFCs’ assets

(By end/-March)
40 Sep-21 Mar-22 Sep-22 100 0.4 0.5 0.4
99
2.7 2.7 2.7
30 98

97

96
(%)

20 3.0 2.7 2.7

95

(%)
94

10 93

92 93.8 94.0 94.3

91
0
90
Agriculture Industry Services Personal Others Gross Advances
(1.70%) (37.50%) (14.70%) (29.50%) (16.5%) Mar-20 Mar-21 Mar-22
Source: RBI Standard Assets Sub-Standard Assets Doubtful Assets Loss Assets
Note : Numbers in the bracket correspond to sector shares in outstanding loans in Sep-22
Notes: Data are provisional.
The Micro, Small and Medium Enterprise (MSME) sector Performance in FY2023 Source: Supervisory Returns, RBI
is critical to the Indian economy. However, only 39% After several upheavals caused by COVID-19, NBFCs
of formal sources of credit have reached MSMEs. This have returned to normalcy. Disbursements by An ongoing improvement in overall health, particularly Financial position
enormous credit gap experienced in this sector allows NBFCs (excluding Infra-NBFCs) were higher than pre- regarding asset quality and capital adequacy can In line with the decline in GNPAs, the capital position
NBFCs to expand significantly and provide last-mile pandemic levels for three consecutive quarters of also be seen. The continuous improvement in asset of NBFCs remained robust. The Capital to Risk
credit delivery with the help of technology to achieve FY2023. Moreover, collection efficiency was healthy quality is mirrored in the declining GNPA (Gross Non- (Weighted) Assets Ratio (CRAR) of 27.4% at the end
better operational efficiency and risk management. and is expected to stay robust due to improved Performing Assets) ratio of NBFCs from a peak of of September 2022 fell only 20 basis points (bps)
economic activity and a favourable outlook for most 7.2% reached during the second wave of the pandemic from March 2022 levels, partly due to the increase
Overall, NBFCs will play a key role in supporting the
sectors, assuming there are no material or global in June 2021 to 5.9% in September 2022, which was in risk-weighted assets (RWA) amidst higher lending
socio-economic construct of the Indian economy as
business-related disruptions. close to the pre-pandemic level. activities. This remains well above the regulatory
the opportunity for credit penetration remains high.
requirement of 15%.
GNPA, NNPA and PCR
(By end March)
Profitability and capital adequacy
7 6.5 70
6.4 6.3
6.0 28.0 CRAR RoA (RHS) 3.0
6 5.6 5.8 60

2.5
5 50

27.5 2.0
4 40
Per cent

(%)
4.1
(%)

(%)
1.5
3 3.3 30
2.9 3.2
2.7 27.0 1.0
2 2.3 20

1 10 0.5

0 0 26.5 0.0

2017 2018 2019 2020 2021 2022 Mar-21 Sep-21 Mar-22 Sep-22

GNPA Ratio NNPA Ratio Provision Coverage Ratio (PCR) (RHS) Source: RBI

Notes: Data are provisional.

Source: Supervisory Returns, RBI

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According to ICRA, the profitability of NBFCs improved non-deposit-taking NBFCs, except for changes in AUM growth of NBFCs (including HFCs)
in FY2023 as compared to the previous year, and this governance and prudential guidelines. 40 ~13-~14%
improvement is expected to be an interplay of higher ~12-~13%
NBFCs in the ML will include deposit-taking NBFCs 35
growth in Assets Under Management (AUM), stable ~7%
irrespective of asset size, non-deposit-taking firms ~15%
Net Interest Margins (NIMs) and lower credit costs. The 30 ~2%
with assets worth ₹ 1,000 crores or more, and ~4%
Return on Assets (RoA) for NBFCs has also recovered
Housing Finance Companies (HFCs). These will be 25
over the past half-year period (ended September).
regulated on the lines of systemically important CAGR:~20%
20
non-deposit-taking NBFCs, deposit-taking NBFCs,

Per cent
Key regulatory developments
and HFCs, as the case may be, except for changes 15
The regulations are becoming stringent over time, in capital, prudential and governance guidelines.
resulting in a more robust and relevant business 10
model. A few of the regulations guiding the sector are: NBFCs falling in the UL will include top-10 NBFCs
as per size and NBFCs that warrant enhanced 5

• Prudential norms for Income Recognition, regulatory requirements based on certain 0

Asset Classification and Provisioning (IRACP) parameters. These will be subject to regulations Mar-10 Mar-13 Mar-18 Mar-19 Mar-20 Mar-20 Mar-22 Mar-23 [P] Mar-24 [P]
on advances applicable to NBFCs in the ML, with additions
Source: Company data, CRISIL ratings, November 2022
such as the introduction of common equity
As per the new norms that came into effect in
Tier 1 and leverage requirements, mandatory Automobile and vehicle financing
October 2022, an NBFC may upgrade an NPA to
listing and qualification of Board members. On
a ‘standard’ asset only if the borrower pays the The automobile sector is a key driver of India’s vehicles, commercial vehicles, three-wheelers, two-
30 th September 2022, RBI released the list
entire arrears in the form of interest and principal. economic growth and contributes more than 7% to wheelers, and quadricycles in FY2023, as against the
wherein 16 NBFCs were categorised under UL.
Additionally, there is a change in the recognition India’s GDP. In 2022, India became the third-largest 2,30,40,066 units in FY2022.
of NPAs to a daily due-date basis versus a month- For NBFCs falling in the TL (ideally vacant), while automobile market, surpassing Japan and Germany.
Compared to the previous year, passenger cars also
end basis. These revised norms will bring parity no specific regulation has been provided, they Rising middle-class income and a burgeoning young
saw an increase from 14,67,039 to 17,47,376, utility
in income recognition and asset classification will be subjected to higher capital charges and population are some factors driving strong demand
vehicles from 14,89,219 to 20,03,718, and vans from
practices at banks and NBFCs. enhanced supervisory engagement. in this sector.
1,13,265 to 1,39,020 units.
Even amidst uncertainties regarding the supply chain
• Scale-based regulation for NBFCs • The Prompt Corrective Action Framework Overall commercial vehicle sales stood at 9,62,468
last year, production has been increasing every quarter
Effective from October 2021, the RBI introduced The PCA framework applies to all deposit-taking units. Sale of Medium and Heavy Commercial Vehicles
with improvement in the availability of semiconductor
scale-based regulation for NBFCs. Under the new NBFCs (NBFCs-D) and all non-deposit-taking increased from 2,40,577 to 3,59,003 units, and
chips and related components.
framework, NBFCs – based on their size, activity, NBFCs (NBFCs-ND) in the Middle, Upper, and Light Commercial Vehicles increased from 4,75,989
and perceived risks–were classified under four Top Layers identified under RBI's Scale-Based According to the Society of Indian Automobile to 6,03,465 units, in FY2023, compared to the
layers: Base Layer (BL), Middle Layer (ML), Upper Regulations. This excludes NBFCs not accepting/ Manufacturers (SIAM), the industry produced a previous year.
Layer (UL), and a possible Top Layer (TL). The new not intending to accept public funds, government total of 2,59,31,867 vehicles, including passenger
framework will tighten regulatory oversight of companies, primary dealers, and Housing Finance
the sector, with progressively tighter norms for Companies (HFCs). The framework is structured Domestic sale (in Nos.)
the higher layers. as an early-intervention mechanism for lending
Category 2020-21 2021-22 2022-23
institutions with weak financial records (lower
NBFCs in the BL will be non-deposit-taking NBFCs, Passenger vehicles (PVs) 27,11,457 30,69,523 38,90,114
profitability or poor asset quality). The said
with assets worth up to ₹ 1,000 crores. These will Commercial vehicles (CVs) 5,68,559 7,16,566 9,62,468
framework came into effect on 1 st October 2022.
be broadly subjected to extant regulations for
Three-wheelers (3W) 2,19,446 2,61,385 4,88,768

Outlook Two-wheelers (2W) 1,51,20,783 1,35,70,008 1,58,62,087

Quadricycles (12) 124 725
After three years of single-digit growth, NBFCs are sentiment, strong auto sales and resilient housing
poised to witness an 11-12% growth in AUM by the demand. Further factors such as higher provisioning, Total 1,86,20,233 1,76,17,606 2,12,04,162
end of FY2023, according to a CRISIL report. stronger balance sheets, receding asset quality
Source: Society of Indian Automobiles Manufacturers (SIAM)
concerns and normalising funding situation
Future growth is expected to be supported by the
could enable NBFCs to drive credit demand and With the transition to Electric Vehicles (EVs) gaining economic activity and increased mobility. However,
strong push towards digitisation, better consumer
improved profitability. momentum, 2W/3W/PVs should see a rise in sales while the demand sentiment for PVs, CVs and
contribution from EVs in the next couple of years, tractors has remained healthy, the 2W industry is still
with supply matching the growing demand. Incentives facing several challenges, with overall volumes still
by central and various state governments have also below pre-COVID levels.
MMFSL Response
led to the strong growth of EVs in the 2W segment.
We maintain such provisions in the books which adequately cover requirements under both Ind AS and The domestic automotive industry witnessed a Rural India remains a key market for the auto sector
Income Recognition, Asset Classification and Provisioning (IRACP) norms. healthy revival in FY2023, aided by the recovery in and the Indian tractor industry has remained resilient
and has seen consistent export growth.
As on 31 st March 2023, GNPA (IRACP) was higher by approximately ₹ 1,184 crores in comparison to GS
3 Ind AS. This has remained rangebound during the year and no additional provisioning was required on
account of IRACP.
In comparison to the IRACP requirement, our Company maintains an excess provision of ₹ 1,094 crores
under Ind AS.

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Number of tractors sold (including exports) Lean Manufacturing Competitiveness for MSMEs Performance in FY2023
Under the MSME Competitive (Lean) Scheme, MSMEs The sector managed to sustain credit growth
10,28,625 10,43,911
will be assisted in reducing their manufacturing costs momentum in H1 FY2023, attributed to the
through proper personnel management, better space recovery in domestic demand, continuing government
8,83,461 8,80,048
utilisation, scientific inventory management, improved initiatives, increased working capital requirements
8,04,000
process flows, reduced engineering time and so on. and favourable regulatory changes. Delinquencies
towards MSME sector improved to 7.7% in September
2022 from 9.3% in March 2022.

MSME sector credit growth (%)

25.4
22.4 22.4

16.8
15.3
13.2
10.4
2018 2019 2020 2021 2022 9.3

Notes: Th
 e numbers are from January to December for each year. 5.2 5.6
3
Source: Tractor and Mechanization Association (TMA) 1.7

In the first eight months of FY2023, the industry commercial vehicles. In addition, the ₹ 75,000 crores
exported 89,192 tractors compared to 85,281 units allocation towards improving the first and last-mile PSBs PVBs All SCBs
during the same period in FY2022. This growth is connectivity will benefit the LCV segment. Mar-21 Sep-21 Mar-22 Sep-22
fuelled by a healthy monsoon season, improved farm
cash flows across regions, better crop realisations and Outlook
Notes: D
 ue to the extension of the validity of old documents for MSME classification provided by the Ministry of MSME, the MSME
prices, and the government’s focus on procurement. According to CRISIL, the NBFC vehicle finance AUM credit outstanding figures as per regulatory returns for previous quarters have been revised.
With improving consumer sentiment, the rural market is expected to clock growth of 13-14% in FY2024, Source: RBI supervisory returns and staff calculations.
is expected to remain buoyant and be able to sustain compared to the estimated 12% growth in FY2023.
the solid sectoral tailwinds in auto finance. The market growth is expected to be driven by robust Outlook and constructing infrastructure mega-projects such
pent-up demand and new launches in cars and utility According to CRISIL, the MSME sector will experience as highways, new airports and metros, the industry is
Union Budget FY2024 highlights vehicles. NBFCs will likely leverage their last-mile seeing a stimulation in the quantitative and qualitative
reasonable credit growth of 16-18% during the
The automotive sector is a significant contributor connectivity and deep entrenchment in micro markets current fiscal and FY2024. The government’s growth of real estate and housing finance. In the
to India’s GDP and employment. The Union Budget to focus on used-vehicle financing. emphasis on self-sufficiency through the ‘Atmanirbhar future, the under-penetrated market and digitally
touched upon the following critical areas for the Bharat’ initiative, and the Productivity Linked Incentive enabled services will propel the affordable housing
Overall, India’s vehicle financing sector remains
mobility sector: (PLI) scheme should drive demand for credit in the finance industry.
highly dynamic and is a space where digitisation and
partnerships allow industry players to gain an edge MSME segment.
Push towards EVs Performance in FY2023
over their competition. As economic activity picks up gradually with the
The government has nearly doubled its budgetary According to a CRISIL report, the AUM of housing
support of fintech and other digital lending solutions
allocation for the Faster Adoption and Manufacturing SME financing finance companies (HFCs) is expected to grow 10-
in the sector, MSMEs’ demand for credit will likely
of Electric Vehicles (FAME) scheme to promote green 12% in FY2023, compared to 8% in the previous
India’s MSME sector accounts for almost 33% of the increase as the sector experiences ease of doing
mobility. As per the budget document, the subsidy period, driven by 15% y-o-y growth in home loans,
country’s GDP and 45% of total employment, creating business digitally, the penetration of the internet and
under the FAME scheme for FY2024 is projected at while growth in other segments remains muted.
nearly 120 million jobs across all industries and has affinity towards online marketplaces in India.
₹ 5,172 crores, which is 78% higher than the 2022 Notably, the affordable housing space is expected to
been a key driver of credit offtake. Given the sector's
budget. Also, the EV sector will receive an extra grow at a faster pace of 18-20%. The release of pent-
significance for income and employment generation, Housing Finance
push due to the custom duty reduction from 21% up demand was reflected in the housing market as
RBI and the Central Government have initiated several Under the Pradhan Mantri Awas Yojana scheme for
to 13% on lithium-ion cells and viability gap funding demand for housing loans increased. Consequently,
measures to revive the sector. A few of the initiatives rural areas, 2.1 crores houses were completed by 6th
support for battery storage systems with a capacity housing inventories have declined, as witnessed by
helping MSMEs are: January 2023, as per the Economic Survey 2022-23
of 4,000 MWh. a significant reduction in inventory overhang to 33
Further, with the government developing months in Q3 FY2023 from 42 months last year.
Digitised SME loans
Vehicle scrappage policy
In FY2023, RBI enabled the end-to-end digitisation
Furthering the Vehicle Scrappage Policy of 2021, the
of loans to MSMEs and the complete digitalisation of
central government has proposed additional spending
Kisan Credit Card (KCC)-based loans.
on the scrapping of old government vehicles. States
will also be given the support needed to discard old
Emergency Credit Line Guarantee Scheme (ECLGS)
vehicles and old ambulances.
As of 30 th November 2022, 1.2 crores MSME
Push towards transport infrastructure projects units availed of the ECLGS scheme. Collateral-free
and affordable housing resources, aggregating ₹ 3.6 lakhs crores, were
The significantly higher allocation of ₹ 10 lakhs crores raised. Moreover, in the Union Budget, ₹ 9,000 crores
towards capital investment and ₹ 79,000 crores have been allocated for revamped credit guarantee
towards affordable housing will push the demand for scheme for MSMEs, which will lower the cost of credit
by 1%.

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Outlook We continue to hold the leadership position in the

Growth in HFC AUM India is expected to have 6.11 lakhs HNIs by 2025, Tractor and Mahindra UV (utility vehicles) financing
securing its position as the fourth-largest private segments. Its market share has also seen improvement
27% AUM (₹ lakh crores) Growth (%) wealth market globally by 2028.(2) The future during this period across manufacturers. The company
~16 continues to partner with auto aggregators to
25%
14.3
seems promising for wealth management as it is
23%
13.0 13.3 driven by India’s long-term economic prospects, generate leads in the pre-owned vehicle finance space.
12.6
10.7
favourable demographics, rising income levels and low Quiklyz, a car-leasing solution launched in FY2022, is
penetration levels. actively strengthening its presence in the B2B segment
8.5 18% 10-12%
6.9
and is expected to grow with the rising demand for
Business review EVs expected to boost the rental and leasing market.
The business environment has sharply bounced
3% 8% We are now rated AAA across all credit rating
2% back which was impacted due to the pandemic. At
agencies, and this is expected to gradually reflect
₹ 49,541 crores, the disbursement was the highest
in improvement in the borrowing rates and ability to
ever, recording an increase of 80% over the previous
access more investors.
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 [P] year. The growth has been through a mix of gaining
Source: CRISIL ratings, September 2022 scale in our core area of rural and semi-urban markets During the year, the Company undertook a significant
coupled with building a presence in Emerging India transformation projection (‘Udaan’) to enhance its
Outlook by catering to mass-affluent customer segments. technological and digital capabilities. This coupled with
Under the Union Budget FY2024, the government has insurance penetration stood at 4.2% of the GDP in New business verticals like SME lending (including hiring new talent and motivating existing workforce
proposed to enhance the PM Awas Yojana Fund by 66% FY2022. In FY2023, first-year premium numbers grew Loan against Property), Leasing business, and Digital through an improved incentivisation policy led to
to ₹ 79,000 crores, thereby giving the housing sector by 17.9% vs. the 12.9% growth reported in FY2022. Finco for small ticket personal and consumer durable an increase in operating costs. The benefits were
a boost. Accordingly, FY2024 will likely see robust The FY2023 growth can be attributed primarily to loans are also being scaled up. Business growth was visible through sustained improvement momentum
sector growth due to rising income and favourable group single premiums and a low base. Currently, complemented by a strong improvement in asset in disbursements, improving asset quality and robust
government initiatives. Despite rising interest private insurance companies continue to extend their quality wherein Gross Stage 3 improved from 7.7% collection efficiency. The Company continues to invest
rates and real estate prices, customer interest has lead in the individual non-single premium segment. (as of Mar-22) to 4.5% (as of Mar-23). Similarly, Gross in talent retention and technology initiatives to
remained strong, even as rates remain below earlier The general insurance industry premium grew at a Stage 2 improved from 14.3% as of March 2022 to further upgrade its capabilities to meet customer and
cycles. ICRA expects that the asset quality indicators healthy pace of 16% in the reporting period. The total 6.0% as of March 2023. employee expectations.
of HFCs will not be significantly impacted by the rise premium for the general insurance industry in the
in the interest rates as the nation's housing market financial year stood at ₹ 2,56,920 crores compared Financial Results ₹ in crores
remains in an upcycle. to ₹ 2,20,800 crores a year ago. The standalone
Consolidated Standalone
health insurance sector grew its premium by 26% to Particulars
Mutual funds ₹ 26,242 crores in FY2023. FY2023 FY2022 FY2023 FY2022
Total Income 12,832.40 11,400.51 11,056.09 9,718.80
According to the Association of Mutual Funds in
India (AMFI), the mutual fund industry’s net AUM was Outlook Less: Finance Costs 5,094.30 4,417.37 4,576.72 3,920.18
₹ 39.42 lakhs crores, while the average asset under The Indian insurance industry is likely to be in the top Expenditure 4,695.64 5,347.32 3,539.56 4,314.88
management (AAUM) was ₹ 40.04 lakhs crores in six insurance markets globally by 2032. The growth in Depreciation, Amortisation, and Impairment 225.96 151.99 187.23 126.83
March 2023, indicating investors’ continued faith in the non-life insurance sector is expected to be driven Total Expenses 10,015.90 9,916.68 8,303.51 8,361.89
the markets. Of the total AUM, retail AUM across by demand for health coverage, with people becoming Profit before exceptional items and taxes 2,816.50 1,483.83 2,752.58 1,356.91
equity, hybrid and solution-oriented schemes stood more aware of health post-COVID-19, and the strong Share of profit of Associates & Joint Ventures 43.32 45.02 - -
at ₹ 20.35 lakhs crores. In FY2023, equity-oriented support received from government-sponsored mass Exceptional items (56.06) 20.57 (54.51) -
mutual funds registered a net inflow of ₹ 2 lakhs health programmes such as ‘Ayushman Bharat’.
Profit Before Tax 2,803.76 1,549.42 2,698.07 1,356.91
crores, while SIP inflows continued to soar. Moreover, IRDAI has committed to providing 'Insurance
Less: Provision for Tax
for All' by 2047, which would lead to a massive demand
Current Tax 498.15 411.38 486.28 348.16
Outlook stimulation for the insurance industry in the coming
years. With government initiatives, technological Deferred Tax 234.41 (12.30) 227.47 20.00
AMFI expects the industry to grow by 16-17%
innovations and regulatory frameworks, the industry Profit After Tax for the Year 2,071.20 1,150.34 1,984.32 988.75
in FY2023 as the India growth story holds a lot of
promise. The growth is expected to be driven by prospects appear robust. Less: Profit for the year attributable to non-controlling (1.20) 13.47
interests
differentiated perspectives on investing and retail
participation from young investors. Wealth advisory management Profit for the Year attributable to Owners of the 2,072.40 1,136.87 1,984.32 988.75
Company
The wealth management market in India is on a
Balance of profit brought forward from earlier years 6,146.97 5,285.06 5,247.99 4,558.40
Insurance industry sustained path of growth with the increase in high-
net-worth individuals (HNIs) and ultra-high-net- Add: Other Comprehensive Income /(Loss) (13.35) (3.20) (12.92) (2.32)
According to RBI’s Economic Survey 2022-23, India
worth individuals (UHNIs). India’s wealth is expected Balance available for appropriation 8,206.02 6,418.73 7,219.39 5,544.83
is amongst the fastest-growing insurance markets
globally. Digitisation and an increase in FDI limit are to grow by 10% per year and reach $ 5.5 trillion by Less: Appropriations
likely to drive increased long-term capital flow to the 2025, thereby presenting a massive opportunity. The Dividend paid on Equity Shares (443.87) (98.57) (444.79) (98.84)
insurance sector in India. wealth management industry is rapidly transforming Transfer to Statutory Reserves (402.86) (223.61) (398.00) (198.00)
due to advancements in technology, the increasing Add/Less: Other Adjustments:
According to the Insurance Regulatory and sophistication of investors and the emergence of Gross obligation at fair value to acquire a non- 59.41 54.40 - -
Development Authority of India (IRDAI), India’s innovative financial offerings. controlling interest
Changes in Group's Interest (1.35) (3.98) - -
Balance carried forward to the balance sheet 7,417.35 6,146.97 6,376.60 5,247.99
Net worth 18,560.09 16,896.31 17,088.91 15,628.09

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SCOT Analysis Threats Key Ratios

Strengths • Future waves of the pandemic may negatively
• Vast distribution network, especially in rural areas impact asset quality Particulars
For the year ended For the year ended
31st March 2023 31st March 2022
and small towns • Uncertain global political environment
PBT/Total Income 24.4% 14.0%
• Long track record of operations with a strong • Tightening regulations for NBFCs
position in the financing of tractors and UVs; market PBT/Total Assets 2.8% 1.8%
• Impact on demand in the backdrop of sustained
leader in tractor financing inflation RONW (Avg. Net Worth) 12.1% 6.5%
• Diversified asset mix and well-diversified funding Debt/ Equity 4.39:1 3.57:1
profile Business performance Capital Adequacy 22.5% 27.8%
• Vast knowledge of the needs of the customer Operational review Tier I Capital 19.9% 24.3%
segment we work with The key operational highlights on a standalone Tier II Capital 2.6% 3.5%
• Diversified product range and robust collection basis are: Book Value (in ₹ ) 138.3 126.5
systems NIM (Gross Spread) 7.6% 7.6%
• Total income was ₹ 11,056.09 crores in FY2023
• Simplified and prompt loan request appraisal and compa re d to ₹ 9,71 8 . 8 0 crore s in F Y2022,
disbursements an increase of 14%, primarily led by asset and Analysis of Profit & Loss
• Product innovation and superior delivery disbursement growth. • Revenue from operations during FY2023 increased more proactive risk management and mitigation
• Parentage: Mahindra brand and fund-raising ability • Disbursements for the FY2023 was at ₹ 49,541 by 13% over the previous year. This was primarily framework. The Risk Management Committee
crores, a growth of 80% over the previous year. due to the average loan book in FY2023 being assists the Board in overseeing various risks,
• Strong financial position; comfortable capitalisation
higher than the previous year. Disbursements including reviewing and analysing risk exposures
and liquidity profile • Gross Loan Book rose to ₹ 82,770 crores in FY2023
improved with each passing quarter resulting in related to our Company. The Risk Management
• High credit rating from ₹ 64,961 crores in FY2022, an increase of
the closing loan book being higher by 27% over the Committee regularly reviews risk management
27.4%.
• Long-lasting relationships across multiple OEMs previous year. measures and thereafter by the Board. Periodic
• Strong Capital Adequacy at 22.5%, D: E ratio of diligence is performed and recommendations
• Strong management team • Net interest income grew by 11% over the previous
4.39x and maintained Liquidity buffer equivalent to for corrective actions and process changes are
year. During the current year, your Company’s credit
3 months requirement. thereafter implemented.
Challenges rating had been upgraded resulting in an ‘AAA’ rating
• Maintained a healthy Provision Coverage Ratio across all credit rating agencies.
• Rising competition from banks
(PCR) of 59.5% for Gross Stage 3 in March 2023. Risk management process
• Increasing cost of funding • NIMs for the current year at 7.6% was similar to
• Customer base crossed 9.0 million customers. previous year. The Company has enhanced the The risk management system is integral to all major
• Retention of talent functions within our Company. The process includes
• Employee base stood at 26,329 as on 31 st March lending rate during the second half to price in the
2023. effect of an increase in borrowing cost. these key elements:
Opportunities
• The cost-to-income ratio for the year increased
• Recovery in economic activity • A strategy that is driven by objectives and principles
during the year to 42.1% as compared to 35.8% in
• Revival in rural consumption FY2022. This was owing to increased activity as the • Assignment of responsibilities
• Digitalisation and data-driven decision making volume picked up post-pandemic. In addition, your • ‘AT MA’ (Avoid-Transfer- Mitigate -A ssume) risk
Company has invested in new collection-related management framework approach and reporting
Financial overview processes, upgrading its IT infrastructure, and cycle to identify, assess, mitigate, monitor, and report
The following table presents your Company’s standalone abridged financials for FY2023, including revenues, bringing in new talent. Operating Expenses have the risks that our Company is or may be exposed to
expenses, and profits. increased 32% y-o-y in FY2023 due to continued • A combination of 'top- down' and 'bot tom-up'
investments in future grow th-oriented area s. approaches to the risk assessment and management
Abridged statement of profit and loss ₹ in crores Your Company continues to use digital initiatives process
which shall result in cost optimisation over the
For the year ended For the year ended • A risk-monitoring plan that outlines the review,
Particulars Change (%) medium term.
31st March, 2023 31st March, 2022 challenge, and oversight activities
• The prof it before ta x for F Y2023 was higher
Revenue from operations 10,928.80 9,657.97 13.2 • Outside-In reporting procedures which ensure risk
by around 99% at ₹ 2,698 crores a s against
Other Income 127.29 60.83 109.3 information is actively monitored, managed, and
₹ 1,357 crores in FY2022. Your Company, however,
Total Revenue 11,056.09 9,718.80 13.8 appropriately communicated at all levels within the
continued to maintain a robust provision coverage
Company
Expenses of 59.5% in FY2023 vis-à-vis 58.1% in FY2022.
(a) Employee benefits expenses 1,584.27 1,171.40 35.2 • Developing risk appetite statements with the
• Profit After Tax (PAT) for the year stood at ₹ 1,984
strategic planning process, then monitoring and
(b) Finance costs 4,576.72 3,920.18 16.7 crores, up by around 101% compared to ₹ 989
reporting on these statements
(c) Depreciation, amortisation, and impairment 187.23 126.83 47.6 crores in FY2022.
(d) Impairment on financial instruments 999.23 2,368.30 (57.8) • Return on Equity (RoE) for the year stood at 12.1% The risk management framework is based on
(e) Other expenses 956.06 775.18 23.3 against 6.5% in FY2022. Return on Assets (ROA) assessing risks through analysis and understanding
Total Expenses 8,303.51 8,361.89 (0.7) for the year stood at 2.3% compared to 1.3% for of the underlying risks before undertaking any
the previous year. transactions and changing or implementing processes
Profit before exceptional items and taxes 2,752.58 1,356.91 102.9
Exceptional items (net) - income / (expense) (54.51) - - and systems. This risk management mechanism is
Risk management supported by regular review, control, self-assessment,
Profit before tax 2,698.07 1,356.91 98.8
Considering how volatility in the operating and monitoring of key risk indicators. The key risks are
Tax expense (713.75) (368.16) 93.9 environment can have an unprecedented impact the following:
Profit for the year 1,984.32 988.75 100.7 on global businesses, our Company is adopting a

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Credit risk allows us to optimise returns. Prudential limits on Vide the notification RBI/2021-22/112 DOR.CRE. addition, the pandemic's impact increased political and
Credit risk is defined as the possibility of losses borrowing and investments ensure the company does REC.No.60/03.10.001/2021-22 dated 22nd October, macroeconomic risks.
associated with a diminution in the credit quality of not take any undue risks. All these policies and review 2021, the regulator has brought about a revised
Approach: Our conservative capital structure policies
borrowers or counterparties. In MMFSL’s portfolio, mechanisms assist in making necessary realignments scale-based regulatory framework for NBFCs. The
ensure that our Company always remain adequately
losses stem from outright default due to the inability or to lending and borrowing decisions to mitigate any regulatory framework classifies NBFCs under four
capitalised. The liquidity chest ensures that such
unwillingness of a customer or counterparty to meet interest rate risks. layers (Base, Middle, Upper and Top) based on their
pandemic shocks can be absorbed without impacting
commitments concerning lending, trading, settlement size, activity and perceived riskiness. MMFSL has
our credit rating and debt servicing capability. Our reach
and other financial transactions. Alternatively, losses Operational risk been classified under the Upper Layer. Appropriate
ensures we are always connected with our customers
result from a reduction in portfolio value arising from Operational risk refers to the risk of loss resulting processes and systems have been put in place to
during challenging times. Our Business Continuity Plans
actual or perceived deterioration in credit quality. from inadequate or failed internal processes, people, comply with the requirements prescribed for Upper
and processes ensure the business keeps running with
and systems or external events, including legal and Layer NBFCs. Internal Capital Adequacy Assessment
Approach: The effective management of credit adequate security measures.
reputational risks. Process and Stress Testing have been implemented
risk is a critical component of comprehensive risk as part of scale-based regulation with the adoption of
management and is essential for the long-term Approach: The Operational Risk Management Policy Market risk
appropriate risk assessment methodologies.
success of the organisation. Credit risk management has been designed and implemented to put in place the Market risk is the risk of losses arising from fluctuations
encompasses the identification, measurement, governance structure around the risk. A robust risk Human capital risk in interest rates, credit spreads, foreign currency rates,
monitoring and control of credit risk exposures. management approach defined under the policy helps equity prices, commodity prices and other factors,
This is the risk of undesired attrition of good
in mitigating operational risks. This approach guides such as market implied volatilities, that may lead to a
performers and critically skilled employees in the
• The stringent credit appraisal system and post- the requirement of defining roles and responsibilities, reduction in earnings, economic value, or both.
evolving environment.
disbursement monitoring ensure high-quality loan segregation of duties and delegation of powers. The
Approach: Our Company is safeguarded against
assets with a low probability of default. new product/process approval framework has been Approach: Our Company strives to have
any market risk owing to the prudent approach of
• A borrower credit rating framework is adopted to designed and implemented to identify the risks in new contemporary, employee-friendly policies and people-
continuously maintaining and monitoring market-linked
avoid the limitations associated with a simplistic products/processes and implement the risk mitigants. oriented culture. MMFSL mitigates the risk of attrition
securities, as per internal and regulatory guidelines.
and broad classification of loans/exposures into a by ensuring continuous analysis and action planning in
‘good’ or a ‘bad’ category. For each proposal, the Business risk all areas to improve our people practices constantly.
Climate risk
ratings are assigned and high-risk applications Being an NBFC, we are exposed to various external Each year, the organisation does a comprehensive
study of identifying employee pain areas and The risk from climate change may involve environmental
are recommended to the higher level of credit risks, which directly affect sustainability and
implements solutions around the identified areas. The degradation, rising sea levels, and shift in weather
approvers. profitability. The most prominent risks are industry
compensation our Company paid is comparable with patterns that threaten food production, the impact of
risk and competition risk. Our customers also have
other companies of our class and size, and regular which are global in scope and unprecedented in scale.
Liquidity risk their earning linked to agri-output and its prices.
benchmarking is done to understand the variances. The risk from climate change may also entail irregular
Liquidity risk refers to the inability of a company to Timely and spatial distribution of monsoon and other
Regular connections by business managers and weather conditions, such as sporadic monsoon, which
either meet its financial obligations, including debt climatic factors plays an important role in earning
HR ensures that employee concerns are addressed significantly affects the economic growth in the Indian
servicing, or its inability to raise funds from external and repayment capability of our customers. The
proactively to reduce regrettable attrition. We also context. Climate change may also involve the risk of
sources at optimal pricing. volatile macroeconomic scenario and sector-specific
actively invest in training and upskilling our workforce. economic losses caused by physical damage to property
imbalances can result in loan asset impairment.
Approach: We continue to have a comprehensive The Company continuously invests in training and assets from extreme weather conditions and
Liquidity Risk Management (LRM) framework that is Approach: A dedicated team evaluates the trends in and upskilling its workforce to meet the evolving natural calamities. Our carbon footprint also poses a
governed by the Liquidity Risk Management Policy the economy and various other sectors. In line with expectation of our stakeholders. risk in terms of our decreased rating on the ESG front.
and Procedures approved by the Board. The Asset market trends, our Company has developed tailor-
Approach: Our Company has been working towards
Liability Committee (ALCO) of the Board and Asset made products and is reviewing new growth engines Information technology risk identifying frameworks to assess and keep track of the
Liability Management Committee (ALMCO) oversee like SME, digital finance, and leasing to deepen market
With the rise of technology-dependent services, it is progression of seasons and climate change and how the
the implementation and ensure adherence to the penetration and de-risk the business from over-
critical to keep any technology and cyber risk under adverse impact of such climate change on the business
risk tolerance/limits set as per the LRM framework. dependence on core, that is vehicle finance. Driven by
check and keep them to an acceptable level. can be reduced. This involves identifying and mapping
Further, to minimise any impact of any external shock, a nimble-footed sales force, a wide range of products,
sustainability and climate change risks for inclusion in
our Company maintains a liquidity buffer to the tune of continuous efforts to improve turnaround time and a Approach: We treat IT risks using a multipronged
the risk register. With new-age emission norms being
covering the next three months' obligations, which is customer-friendly culture, we are efficiently staying approach that includes periodic testing of internal
rolled out and the changing preferences of consumers
reviewed by both ALCO and ALMCO at regular intervals. ahead of the curve. controls, conducting periodic simulations and drills
for green vehicles, our Company is focusing on financing
Our Company has a well-diversified lender profile to check readiness, using backups that are enabled
environment-friendly CNG and electric vehicles.
with no undue concentration on funding sources. The Compliance risk with ransomware protection, and continuous threat
concentration of borrowing through various sources is It is the risk arising out of legal or regulatory hunting and monitoring using AI and ML-enabled
Human resources
also monitored to ensure a diversified borrowing mix. actions consequent to failure to comply with technology solutions. The Company also uses multiple
cyber security tools for vigilant monitoring, audit At MMFSL, our employees form the bedrock of all our
applicable statutes, regulations, directions, standards
logging, suspicious activity reporting, and prevention initiatives. Based on this deeply rooted philosophy,
Interest rate risk and guidelines.
of unauthorised access. The Company also uses secure we adapt our HR policies to deliver an employee-
This refers to the fluctuations in interest rates, Approach: Our Company fully complies with all centric approach.
and multi-factor authentication for system resources,
which could adversely affect borrowing cost, interest the periodic guidelines issued by the RBI and other conducts continuous data replication at periodic We believe in providing a positive work environment
income and net interest margins of Companies in the regulators and adheres strictly to Capital Adequacy, intervals with a fall-back DR site and holds cyber risk that fosters growth and learning. Our unwavering
financial sector. Fair Practice Codes, RBI Reporting, Asset Classification insurance to minimise the impact. commitment to creating an inclusive workplace has
Approach: The ALCO and ALMCO regularly review and Provisioning Norms, etc., to ensure zero-tolerance
seen us take significant strides to implement best-
the sensitivity analysis, which projects our Company’s on the non-compliance aspect. Stringent review Pandemic risk in-class practices that promote diversity, equity, and
vulnerability to changes in the interest rates. The systems to ensure compliance with the statutory
The COVID-19 pandemic has had an unprecedented inclusion. We strive to create an environment that
LRM framework has defined a judicious borrowing mix guidelines and norms of the NBFC industry are also
impact on societies and economies worldwide. This respects and appreciates the unique contributions of
that allows the company to manage interest costs. in place.
event has also impacted us at different levels. In each employee. We prioritise building diverse teams and
It also has defined a judicious investment mix, which ensure that every voice is heard, valued, and taken into

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consideration when making decisions that shape our physical appraisal and building customer relationship audits to mitigate risks. We leverage manual and Audit Committee. Reputed audit firms also ensure that
Company's future. at local level. Shifting from conducting business automated technologies to treat identified risks. all transactions are correctly authorised and reported
digitally to becoming digitally-led businesses, has Additionally, we are actively adopting data privacy following the relevant regulatory framework. The
To keep our sales team motivated and engaged,
become an integral part of our organisational strategy. practices in alignment with upcoming government reports are reviewed by the Audit Committee of the
we designed market-driven business rewards that
initiatives on data privacy. Board. Wherever necessary, internal control systems
were immensely appreciated by our employees and
Enhancing digital reach are strengthened, and corrective actions are initiated.
managers and helped boost the overall performance of
With our focus on mobile technology, our mobile app Internal control
the organisation.
has become a pivotal channel for customer service, We have established an adequate internal control Cautionary statement
In our commitment to overall well-being, growth, and brand loyalty, customer retention, new customer mechanism to safeguard all our assets and ensure Certain statements in the Management Discussion
job satisfaction, we go beyond the traditional employee acquisition, and revenue generation. The MF Customer operational excellence. The mechanism also and Analysis describing the Company's objectives,
policies and benefits. The policies are designed to promote app, available in 11 languages, enables customers to meticulously records all transaction details and and predictions may be ‘forward-looking statements’
work-life balance, foster professional development, and manage loan accounts, make EMI payments, apply ensures regulatory compliance. We have multiple within the meaning of applicable laws and regulations.
prioritise employee health and welfare. for vehicle loans, and access additional services. In policy frameworks to ensure adequate controls Actual results may vary significantly from the forward-
Harnessing the power of digitisation and being a future- FY2023, app users increased by 40%, reaching 8.7 on business processes. Further, Risk and Control looking statements contained in this document due
ready organisation are the key priority areas for us. lakh users, while collections from the app doubled. dashboards have been defined and are periodically to various risks and uncertainties. These risks and
In today's rapidly evolving digital landscape, Mahindra We are also developing a dealer app to provide key updated for all important operational processes. uncertainties include the effect of economic and
Finance recognises the tremendous potential of business information to our partners and salespeople At periodic intervals, the management team and political conditions in India, volatility in interest rates,
digitisation in driving innovation, efficiency, and growth. across India. statutory auditors ensure that the defined controls new regulations and Government policies that may
Through our digital learning platforms, we empower our are operative. The Mahindra Group has a dedicated impact the Company’s business as well as its ability
employees to engage in continuous learning, regardless Leveraging technology team of internal auditors to conduct an internal audit. to implement the strategy. The Company does not
of their location or schedule. Our digital ambitions have expanded across various Every year, this team defines the audit agenda for the undertake to update these statements.
lines of segments and products, including auto year, which is implemented after approval from the
Creating a culture of continuous learning and of
loans, pre-owned car loans, leasing, and SMEs. The
nurturing talent to meet the present and future needs
introduction of 'OneApp' empowers our feet-on-street
of the business is at the core of our people development
employees with decision-making capabilities through
philosophy at Mahindra Finance. We are committed to
digital intervention, enhancing their collection
continuously evolving our practices, listening to our
efficiency and transforming our business digitally.
employees, and working collaboratively to foster a
workplace where everyone can flourish and contribute We introduced 'Used Car Digi Loans', a comprehensive
their best. digital journey in collaboration with leading brands
in the used car industry, Car & Bike and Rupyy.
Achievements This integrated journey provides customers with
We have been certified as a Great Place to Work (GPTW) personalised loan offers from Mahindra Finance,
for 2023 by the Great Place to Work Institute. We enabling quicker purchasing decisions. Partners gain
are honoured to receive this certification and remain real-time visibility of application status and sanctioned
committed to continuously improving our workplace loan offers, facilitating prompt vehicle delivery and
practices and experiences. In addition, Mahindra Finance enhancing customer satisfaction.
has been recognised among: We prioritise enhancing our core operations by adopting
cloud-based loan origination and management
• India's Best Companies to Work for 2023: Top 100 systems, leveraging advanced API platforms for
• Best in Industry: NBFC scalable transactions. Digitalisation has accelerated
loan processing while maintaining rigorous checks.
We have also received the ‘Best Place to Work in India’ Additionally, we harness the power of data sciences
title from AmbitionBox and were awarded the ‘Happiest and artificial intelligence, utilising business intelligence
Workplace for Women’ title by India Today. dashboards and machine learning models for strategic
initiatives in areas such as lending, retention, and
Information Technology business expansion.
The way customers engage with businesses is dynamic We lead the way among NBFCs globally with our end-
and is undergoing a significant transformation, to-end digital process for issuing Fixed Deposit (FD)
prompting digital leaders to take swift action and advice to customers, channel partners, and platform
provide effective solutions that cater to present integration. Our innovative solutions include chatbot
and future scenarios. Digital has shifted from being platforms, WhatsApp integration, and enhanced
just a business channel to becoming the core of the availability through DR systems. We prioritise security
business itself. Achieving seamless remote customer compliance, standardised CKYC processes using
service, doorstep product delivery, and digital sales Azure cognitive services, and leverage robotic process
requires overcoming obstacles related to processes automation to optimise FD operations while ensuring
and mindset. regulatory compliance.
We are enabling our employees, customers, and We prioritise risk minimisation by aligning our risk
other stakeholders by offering them robust digital management processes with ISO 27001:2013 and
alternatives through a redesigned unified app for COSO framework. This includes conducting periodic
customer acquisition, underwriting, and collection. risk assessments, employing a defence-in-depth
These tools shall compliment the reliance placed on strategy, and utilising technology, monitoring, and

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Report on COMPOSITION OF THE BOARD

Composition and other details of Board of Directors as on 31 st March 2023

Corporate Governance
CORPORATE GOVERNANCE PHILOSOPHY Your Company is in compliance with the Corporate
Dr. Anish Shah
Your Company adheres to the highest standards of Governance requirements as mandated by the
governance. Your Company is committed to ethical Securities and Exchange Board of India (Listing DIN – 02719429
values, sustainable business practices, driving positive Obligations and Disclosure Requirements) Non-Executive Chairman
change in the areas in which it operates and committed Regulations, 2015 (“the Listing Regulations”)
Nationality USA (OCI Card holder, resident
to transparency in all its dealings and creating shared in letter and in spirit. A Repor t on compliance
of India)
value for all its stakeholders. with the Code of Corporate Governance as
stipulated in the Listing Regulations, for the year Age 53
Your Company places high emphasis on empowerment, ended 31 st March 2023 (year under review) and
integrity and diversity to generate long-term value developments up to the date of this repor t are Date of Appointment 18th March 2016
for its stakeholders and retain investor trust. The given below: Tenure on Board 7 years
governance processes and practices ensure that the
interest of all stakeholders are taken into account BOARD OF DIRECTORS Term Ending Date N.A.
in a balanced and transparent manner and are
The composition of the Board of your Company is Shareholding Nil
firmly embedded into the culture and ethos of the
in conformity with the provisions of the Companies
organisation. It is a firm conviction of the Company Board Memberships - Indian Listed Entities
Act, 2013 (“the Act”) and the Listing Regulations, as
that good Corporate Governance practices are
amended from time to time.
powerful enablers, which infuse trust and confidence, Mahindra & Mahindra Financial Services Limited Non-Executive Non-Independent
that attract and retain financial and human capital. The Board of your Company comprised ten Directors Director & Chairman
as on 31 st March 2023 and as on date of this Report.
Your Company has an active, experienced, diverse Mahindra & Mahindra Limited Managing Director & CEO
As on the date of the report, the Company has a Non-
and a well-informed Board. Through the governance
Executive Non-Independent Chairman, 1 Executive Mahindra Logistics Limited Non-Executive Non-Independent
mechanism in the Company, the Board along with its
Director, 2 Non-Executive Non-Independent Directors Director & Chairman
Committees adopts best environmental, social and
and 6 Independent Directors [including 2 (two) Women
governance practices that support ethical leadership, Mahindra Lifespace Developers Limited
Independent Directors].
sustainability and good corporate citizenship. Non-Executive Non-Independent
Tech Mahindra Limited
Director
Mahindra Holidays & Resorts India Limited
Board Composition as on 31st March 2023 Other Directorships* Nil

Committee details as per Regulation 26 of Chairperson: Nil, Member: Nil

Listing Regulations**

Mr. Ramesh Iyer

DIN – 00220759
Executive Director - Vice Chairman & Managing Director

Nationality Indian
80% Men 60% Independent Director
Age 64
20% Women  30% Non- Executive
Non-Independent Directors Date of Appointment 30th April 2001
 10% Executive Director Tenure on Board 21 years and 11 months

Term Ending Date 29th April 2024

All the Directors have strong academic background and expert advice to the Board and the Management Shareholding 18,13,750 (0.15%)
and possess rich experience in general corporate and enhancing the quality of Board’s decision-
management, banking, finance, economics, marketing, making process. Board Memberships - Indian Listed Entities
digitisation, analytics, strategy formulation and
Detailed profile of the Directors is available on Mahindra & Mahindra Financial Services Limited Executive Director -Vice
other allied fields that allow them to contribute Chairman & Managing Director
the Company’s website at the web-link: https://
effectively by actively participating in the Board and
mahindraf inance.com/discover-mahindra-f inance/
Committee Meetings, providing valuable guidance Other Directorships* 7
management.
Committee details as per Regulation 26 of Chairperson: 1, Member: 5
Listing Regulations**

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Mr. C. B. Bhave Mr. Dhananjay Mungale

DIN – 00059856 DIN – 00007563

Independent Director Independent Director

Nationality Indian Nationality British (OCI Card holder, resident

of India)
Age 72
Age 69
Date of Appointment 3rd February 2015
Date of Appointment 24th July 2014
Tenure on Board 8 years and 2 months
Tenure on Board 8 years and 8 months&
Term Ending Date 2nd February 2025
Term Ending Date 23rd July 2024
Shareholding Nil
Shareholding 12,500 (0.001%)
Board Memberships - Indian Listed Entities
Board Memberships - Indian Listed Entities
Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited
Avenue Supermarts Limited Independent Director
Mahindra Logistics Limited
Tejas Networks Limited
NOCIL Limited Independent Director
Other Directorships* 2
Tamilnadu Petroproducts Limited
Committee details as per Regulation 26 of Chairperson: 4, Member: 5
Listing Regulations** Mahindra CIE Automotive Limited

Other Directorships* 3

Committee details as per Regulation 26 of Chairperson: 4, Member: 9

Listing Regulations**
Mr. Milind Sarwate

DIN – 00109854
Independent Director

Nationality Indian
Dr. Rebecca Nugent
Age 63
DIN – 09033085
Date of Appointment 1st April 2019 Independent Director

Tenure on Board 4 years Nationality USA

Term Ending Date 31st March 2024 Age 46

Shareholding Nil Date of Appointment 5th March 2021

Board Memberships - Indian Listed Entities Tenure on Board 2 years and 1 month

Mahindra & Mahindra Financial Services Limited Term Ending Date 4th March 2026

Asian Paints Limited Shareholding Nil

FSN E-Commerce Ventures Limited Board Memberships - Indian Listed Entities

Independent Director
Matrimony.com Limited Mahindra & Mahindra Financial Services Limited Independent Director

Metropolis Healthcare Limited Other Directorships* 0

Sequent Scientific Limited Committee details as per Regulation 26 of Chairperson: 0, Member: 0

Listing Regulations**
Other Directorships* 4

Committee details as per Regulation 26 of Chairperson: 5, Member: 10

Listing Regulations**

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Ms. Rama Bijapurkar Mr. Amit Kumar Sinha

DIN – 00001835 DIN – 09127387

Independent Director Non-Executive Non-Independent Director

Nationality Indian Nationality Indian

Age 66 Age 49

Date of Appointment 24th July 2014 Date of Appointment 23rd April 2021

Tenure on Board 8 years and 8 months& Tenure on Board 1 year and 11 months

Term Ending Date 23rd July 2024 Term Ending Date N.A.

Shareholding 30,000 (0.002%) Shareholding Nil

Board Memberships - Indian Listed Entities Board Memberships - Indian Listed Entities

Mahindra & Mahindra Financial Services Limited Mahindra & Mahindra Financial Services Limited Non-Executive Non-Independent
Director
Sun Pharmaceutical Industries Limited
Mahindra Lifespace Developers Limited
Cummins India Limited
Independent Director Other Directorships* 2
VST Industries Limited
Committee details as per Regulation 26 of Chairperson: 0
Apollo Hospitals Enterprise Limited Listing Regulations** Member: 1
Gokaldas Exports Limited

Other Directorships* 1

Committee details as per Regulation 26 of Chairperson: 2, Member: 5

Listing Regulations** Mr. Siddhartha Mohanty

DIN – 08058830
Non-Executive Non-Independent Director

Nationality Indian
Mr. Diwakar Gupta
Age 59
DIN – 01274552
Independent Director Date of Appointment 1st April 2022

Nationality Indian Tenure on Board 1 year

Age 69 Term Ending Date N.A.

Date of Appointment 1st January 2023 Shareholding Nil

Tenure on Board 3 months Board Memberships - Indian Listed Entities

Term Ending Date 31st December 2027 Mahindra & Mahindra Financial Services Limited Non-Executive Non-Independent
Director
Shareholding Nil
Life Insurance Corporation of India Managing Director & In-Charge
Board Memberships - Indian Listed Entities
The India Cements Limited Non-Executive
Mahindra & Mahindra Financial Services Limited Independent Director (Nominee Director)
Mahindra Holidays & Resorts India Limited Other Directorships* 2
Other Directorships* 4 Committee details as per Regulation 26 of Chairperson: 0
Listing Regulations** Member: 1#
Committee details as per Regulation 26 of Chairperson: 3
Listing Regulations** Member: 4
Notes:

* Excludes Directorships in private limited companies, foreign companies and companies registered under Section 8 of the Act.
** Committees considered are Audit Committee and Stakeholders Relationship Committee including in MMFSL. In the
Committee details provided, Committee Membership(s) includes Chairmanship(s).
& Tenure has been considered w.e.f. 1 st April 2014, in line with statutory guidelines for Independent Directors.
# Life Insurance Corporation of India has been included, though incorporated under the Life Insurance Corporation Act, 1956.

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CORE SKILLS/ EXPERTISE/COMPETENCIES OF THE BOARD OF DIRECTORS Appointment of Mr. Raul Rebello as Executive Director
A chart/ matrix setting out the core skills/ expertise/ competencies identified by the Board of Directors in the As a part of succession planning and to ensure seamless Mr. Raul Rebello will assume the office of the MD &
context of the Company’s business and sector(s) as required for it to function effectively and those actually transition, Mr. Raul Rebello has been appointed by the CEO effective 30 th April 2024, on superannuation of
available with the Board during FY2023, are given below: Board of Directors, subject to the approval of the Mr. Ramesh Iyer, Vice-Chairman and Managing Director
shareholders, as the Whole-time Director designated of the Company on 29 th April 2024.
as ‘Executive Director and MD & CEO- designate’ w.e.f.

Mr. Siddhartha Mohanty

In compliance with RBI Circular No. RBI/2022-23/26

Mr. Dhananjay Mungale

1 st May 2023 to 29 th April 2024 and as the Managing

Mr. Amit Kumar Sinha

DOR.ACC.REC.No.20/21.04.018/2022-23 dated 19 th

Ms. Rama Bijapurkar

Dr. Rebecca Nugent

Director of the Company designated as ‘Managing

Mr. Milind Sarwate

Mr. Diwakar Gupta

April 2022, the details of change in composition of the
Director & CEO’ w.e.f. 30 th April 2024 to 30 th April

Mr. Ramesh Iyer

Board during the previous financial year i.e. FY2022 is

Mr. C. B. Bhave
Brief description of skill sets required in Board in context of

Dr. Anish Shah

Skills 2028 (both days inclusive).
business of the Company given below:

Board Members Change in FY2022 Effective date / Period

Mr. Dhananjay Mungale Resigned as the Chairman of the Board. Continues as an Independent 1st April 2021
Business • Established leadership skills in strategic planning, Director
Experience succession planning, driving change and long-term growth
and guiding the Company towards its vision, mission and Dr. Anish Shah Director of the Company was appointed as the Non-Executive w.e.f. 2nd April 2021
values. Chairman.
√ √ √ √ √ √ √ √ √ √
• Critically analysing complex and detailed information and Mr. Amit Raje* Appointed as Whole-time Director, designated as Chief Operating 1st April 2021
developing innovative solutions and striking a balance Officer Digital Finance - Digital Business Unit (for a period of five years.)
between agility and consistency.
Mr. Amit Kumar Sinha* Appointed as an Additional, Non-Executive Non-Independent Director. 23rd April 2021
• Expertise in the field of Banking and Financial Services. X
Mr. Ramesh Iyer* Re-appointed as Managing Director, designated as “Vice-Chairman & 30th April 2021
Financial • Understanding of Finance and Financial Reporting
√ Managing Director” of the Company (for a period of three years)
Experience and Processes;
Risk Oversight • Risk oversight comprising ability to understand and * The shareholders of the Company at the AGM held on 26th July 2021, had approved the appointment of Mr. Amit Raje and Mr.
√ √ √ √ √ √ X √ √ √ Amit Kumar Sinha, and had approved the re-appointment of Mr. Ramesh Iyer with requisite majority.
oversee various risks facing the Company and ensure
that appropriate policies and procedures are in place to
effectively manage risk. Directors retiring by rotation at ensuing AGM under the supervision and control of the Board. The
Technology and • An appreciation of emerging trends in Banking and In terms of Section 152 of the Act, Mr. Amit Kumar Board reviews and approves strategy and oversees
Innovation Financial services across the globe. the actions and results of Management to ensure that
Sinha (DIN: 09127387), Non-Executive Non-
• Expertise in digital and robotic innovation in the field of √ √ √ X √ √ √ √ √ √ Independent Director, is liable to retire by rotation at the long-term objectives of enhancing stakeholders’
Finance and Investments. value are met.
the ensuing AGM. Although eligible for re-appointment
• Ability to visualise future trends and devise strategies for as Director, he does not seek re-appointment, due to
adoption. The Senior Management of your Company have made
his transition to a new role in Mahindra Group i.e. he disclosures to the Board confirming that there have
Governance • Devise systems for compliance with a variety of being appointed as the Managing Director & CEO of
and Regulatory regulatory requirements.
been no material financial and commercial transactions
Mahindra Lifespace Developers Limited w.e.f. 23rd May between them and the Company during FY2023
Oversight √ √ √ √ √ √ X √ √ √
• Reviewing compliance and governance practices for 2023. Accordingly, he would cease to hold office as a which could have potential conflict of interest with the
a long term sustainable growth of the Company and Director of the Company at the close of the ensuing Company at large.
protecting stakeholders’ interest. AGM, scheduled to be held on 28th July 2023. The
Consumer Insights • Ability in developing strategies to increase market share Board has resolved not to fill the said vacancy. Changes in Key Managerial Personnel
and Marketing through innovation, build better brand experience for
Exposure customers, improve prospective customer engagement √ √ √ √ √ √ √ √ √ √ There was no change in Key Managerial Personnel
Pecuniary relationship with Directors
levels and help establish active customers become loyal (“KMPs”) of the Company during the financial year
(mainly rural Apart from reimbursement of expenses incurred in
and semi-urban brand followers. under review except Mr. Amit Raje who had ceased to
the discharge of their duties and the remuneration be Whole-time Director w.e.f. 28th July 2022.
markets)
that the eligible Non-Executive Directors would be
entitled to under the Act, none of the Directors have Board Meetings and attendance thereat
CHANGES IN BOARD MEMBERS DURING FY2023 AND THEREAFTER
any other pecuniary relationships or transactions with
The Board, as a part of its succession planning, periodically reviews its composition to ensure that the same The Board of Directors met seven times during the
the Company, its Subsidiaries or Associates, or their
is closely aligned with the strategy and long-term needs of the Company. The following changes in the Board year under review i.e. on 2nd May 2022, 28th July
Promoters or its Directors, during the two immediately
composition were recommended by the Nomination and remuneration Committee (“NRC”) and approved by the 2022, 26th September 2022, 4th October 2022, 2nd
preceding financial years or during the current financial
Board of Directors of the Company during the year under review: November 2022, 3rd February 2023 and 16th March
year. None of the Directors of your Company are inter-
2023 which was adjourned and continued on 17th
se related to each other.
Board Member Change Effective date and Period March 2023 as against the statutory requirement
of at least four meetings. The requisite quorum was
Mr. Siddhartha Mohanty* Appointed as a Non-Executive Non-Independent Director, w.e.f. 1st April 2022 Management Team
liable to retire by rotation present for all the Meetings.
The Management of the Company comprises Senior
Mr. Amit Raje, Whole time Retired by rotation at Annual General Meeting held on 28th July Ceased to be Director w.e.f. 28th Executives from different functions headed by the The maximum time gap between any two Board
Director 2022, and while being eligible, did not seek re-appointment. July 2022 meetings was not more than one hundred and twenty
Vice-Chairman & Managing Director who operates
Mr. Diwakar Gupta* Appointed as an Independent Director w.e.f. 1st January 2023 (for a days. These Meetings were well attended.
period of five years

* The shareholders of the Company by way of postal ballot through remote e-voting mode, had approved the appointment
of Mr. Siddhartha Mohanty and Mr. Diwakar Gupta, with requisite majority on 15th March 2022 and 30 th December 2022,
respectively.

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The details of attendance of Directors at the Board Meetings held during the financial year under review and CERTIFICATE REGARDING NON-DEBARMENT Committees that is necessary for the Board to
the 32nd Annual General Meeting held on 28th July 2022 is as under: AND NON-DISQUALIFICATION OF DIRECTORS effectively and reasonably perform and discharge its
A certificate issued by M/s. Makarand M. Joshi & Co., duties. Both these Meetings were well attended by
Board Meetings in FY2023# Company Secretaries, pursuant to Regulation 34(3) the Independent Directors.
AGM, 1 2 3 4 5 6 7 % of read with Clause 10 (i) of Paragraph C of Schedule
28th attendance V of the Listing Regulations, certifying that none of FAMILIARISATION PROGRAMME FOR DIRECTORS
Name of July Board Board of a
Directors 2022 16th the Directors on the Board of the Company as on The Company has adopted a structured programme
26th 4th 2nd 3rd Meetings Meetings Director
(VC/ 2nd May 28th July & 17th 31 st March 2023, have been debarred or disqualified for orientation for Independent Directors at the
September October November February held* Attended across
OAVM) 2022 2022 March
2022 2022 2022 2023
2023 all Board from being appointed or continuing as Directors of time of their joining so as to familiarise them with
meetings the companies by the Securities and Exchange Board the Company – its operations, business, industry and
Dr. Anish Shah of India, Ministry of Corporate Affairs, Reserve Bank environment in which it functions and the regulatory
√ √ √ 7 7 100%
of India, or any such Statutory Authority is attached environment applicable to it.
Mr. Ramesh Iyer at the end of the Corporate Governance Report as
√ 7 7 100% Pursuant to the provisions of the Act and Regulation
“Annexure A”.
25(7) of the Listing Regulations, the Company has
Mr. Amit Raje √ NA NA NA NA NA 2 2 100% during the year conducted familiarisation programmes
B O A R D C O N F I R M AT I O N R E G A R D I N G
through briefings at Board/ Committee meetings for
Mr. C. B. Bhave √ √ √ √ √ 7 7 100%
INDEPENDENCE OF THE INDEPENDENT
all its Directors including Independent Directors, which
DIRECTORS
inter alia, included the following:
Mr. Dhananjay ** The Company has received declarations from all the
√ √ √ √ 7 7 100%
Mungale Independent Directors confirming that they meet the • Organising an annual Strategy Board Meeting which
Mr. Milind criteria of independence as prescribed under Section was attended by the Management and Functional
√ √ √ √ 7 7 100% Heads to deliberate on various topics related to the
Sarwate 149(6) of the Act read with Rules framed thereunder,
and Regulation 16(1)(b) of the Listing Regulations. In long-term Vision and Strategy of the Company;
Ms. Rama
√ √ √ 7 7 100% terms of Regulation 25(8) of the Listing Regulations,
Bijapurkar • Quarterly reviews including Business performance
the Independent Directors have confirmed that they update and Financial review;
Dr. Rebecca are not aware of any circumstance or situation which
√ √ √ √ √ √ √ 7 7 100%
Nugent • Presentations made by Internal Auditors and
exists or may be reasonably anticipated that could
Mr. Amit Kumar impair or impact their ability to discharge their duties Statutory Auditors;
√ 7 7 100%
Sinha with an objective independent judgement and without • Updates on Risk Management, mitigation and
Mr. Siddhartha Not **
any external influence. Enterprise Risk Management;
X X X X 7 3 43%
Mohanty Present Based on the disclosures received from all the • Review of Strategic Investments and Business
Mr. Diwakar Independent Directors, the Board after taking these Opportunities of the Company;
NA NA NA NA NA NA 2 2 100%
Gupta declarations/disclosures on record and acknowledging
the veracity of the same, concluded that the • Industry Outlook, Competition update, update on
% of 90% 100% 90% 88.89% 88.89% 100% 90% 100% Indian and Global macro-economic front;
attendance Independent Directors are persons of integrity and
of Board as a possess the relevant expertise, proficiency, and • Information Technolog y Framework including
whole at each experience to qualify and continue as Independent Digitalisation initiatives;
meeting Directors of the Company and are Independent of
the Management. • Strategy/Performance and investments made by
√- Attended through video conference I - Attended in-person I X - Leave of Absence
None of the Independent Directors of the Company
subsidiary companies;

have resigned during the financial year. • Implementation of Liquidity Risk Management
# All the meetings of the Board held during FY2023 were conducted in person/ physical form with option/ facility to the
Directors to participate via VC. (“LRM”) framework and Review of LRM & Asset
MEETINGS OF INDEPENDENT DIRECTORS Liability Management (“ALM”) returns;
* Attendance and percentage are calculated for meetings attended during the Director’s tenure
** Mr. Dhananjay Mungale attended part of the meeting, and Mr. Siddhartha Mohanty did not attend the adjourned meeting held Meetings of Independent Directors were held on 8 th • Briefing on Corporate Social Responsibility (“CSR”)
on 17th March 2023. September 2022 and 16th March 2023, vis-a-vis the activities, Business Responsibility and Sustainability
Statutory mandate of holding minimum one meeting Report (“BRSR”) performance and Environmental,
COMPLIANCE WITH DIRECTORSHIP LIMITS For the purpose of determination of committee in a year. These Meetings were conducted without Social and Governance (“ESG”) initiatives;
On the basis of disclosures received from the Directors, position limits, chairpersonship and membership the presence of the Non-Independent Directors and
positions of the Audit Committee (“AC”) and the • Update on Company ’s remuneration pol icies
it is confirmed that as on 31 st March 2023, none of members of the Management wherein they put forth
Stakeholders Relationship Committee (“SRC”) have and Succession Planning for KMPs and Senior
the Directors of the Company: their views and also discussed the matters relating to
been considered in terms of Regulation 26 of the Management;
Company’s affairs.
i. Hold Directorship positions in more than twenty Listing Regulations. • Prevention of Insider Trading Regulations, Listing
companies (including ten public limited companies At these Meetings, the Independent Directors reviewed
Mr. Ramesh Iyer, Vice-Chairman & Managing Director Regulations;
and seven listed companies); the performance of Non-Independent Directors and
and Mr. Raul Rebello, Executive Director and MD & the Board as a whole, reviewed the performance of • Discu ssion on Internal Control over Financial
ii. Is a member of more than ten committees and/or CEO- Designate, do not serve as Independent Director the Chairman of the Company, assessed the quality, Reporting, Internal Control Processes, Framework
Chairperson of more than five committees, across in any company. quantity, and timeliness of the flow of information for Related Party Transactions, etc.
all the Indian public limited companies in which
The above compliances were met throughout the year. between the Management and the Board and its
they are Directors;

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Pursuant to Regulation 46 of the Listing Regulations, the details of familiarisation programmes are available The matters generally placed before the Board, inter-alia, includes:
on the website of the Company at the web-link: https://www.mahindrafinance.com/investors/disclosures-
reg-46-62/corporate-governance and also given below: Strategic matters Statutory and Governance matters
• Reviewing and guiding the corporate strategy; • Materially important show cause, demand, prosecution
No. of Programmes/ Meetings • Details of any acquisition or collaboration agreement; notices and penalty notices, if any;
Time Invested
attended • Any issue which involves possible public or product liability
• Sale of investment, subsidiaries or assets which are
From 1st April material in nature. claims of substantial nature;
Independent Directors 2015 till From 1st April 2015
During During • Corporate Social Responsibility related matters;
31st March till 31st March 2023
FY2023 FY2023 Operational matters • Appointment and remuneration to Directors, KMP and SMP;
2023 (Cumulative)
(Cumulative) • Business performance along with performance of • Quarterly compliance certificate with exceptions, if any, of
Mr. C. B. Bhave 26 127 30 h 46 m 163 h 36 m subsidiaries; regulatory or statutory compliances;
Mr. Dhananjay Mungale 30 132 32 h 33 m 155 h 33 m • Annual operating plans and capital budgets; • Overseeing risk management framework of the Company;
Mr. Milind Sarwate 35 88 37 h 24 m 103 h 04 m • Regular business/function updates; • Appointment of Joint Statutory Auditors;
Ms. Rama Bijapurkar 18 102 25 h 22 m 139 h 47 m • Appointment and remuneration of directors, key managerial • Minutes of meetings of the Board and its committees
Dr. Rebecca Nugent 15 24 21 h 53 m 41 h 53 m personnel, senior management and succession planning; along with the minutes of its subsidiaries and resolutions
Mr. Diwakar Gupta* 4 4 11 h 37 m 11 h 37 m • Noting of RBI Inspection Report under Section 45N of the passed by circulation;
h-Hours, m-Minutes RBI Act 1934; • Approval of policies as statutorily required and
• Change in signatories for various operational matters; recommended by the Board Committees;
*Appointed w.e.f. 1 st January 2023.
• Noting of quarterly report on customer grievance • Approval for re-constitution of Committees of Board and
BOARD PROCEDURES its subsidiaries, and JVs. Functional and other updates redressal. amendment to the terms of reference;
are also presented to the Board on periodical basis. Finance matters • Significant transactions or arrangements by subsidiary
The Board and its Committees meet at regular
companies;
intervals to discuss and decide on the Company’s • Quarterly/Annual consolidated and standalone results and
Review of subsidiary matters financial statements of the Company; • Statutory disclosures received from the directors and
business policies and strategies apart from statutory
Senior Management;
and other routine matters. The Board is briefed on the operating and financial • Recommendation of Dividend;
• Performance evaluation of the Board, its committees and
performance of the subsidiaries. The minutes of • Quarterly details of foreign exchange exposures and each director;
Overall strategic direction and periodical review of the Board meetings of your Company’s subsidiary hedging;
• Quarterly review of related party transactions and other
matters by the Board and its Committees companies, business performance along with a • Quarterly details on Loans/ Inter-Corporate Deposits given, related matters;
The Board provides the overall strategic direction and statement of all significant transactions, arrangements Investments made, guarantees given or securities provided.
• Quarterly review of Complaints, if any, under the Sexual
conducts structured reviews by itself or through its entered into, and investments made by the unlisted
Harassment of Women at Workplace (Prevention,
Committees, which comprehensively encompasses all subsidiary companies are placed before the Board. Prohibition and Redressal) Act, 2013 [ “POSH ACT”];
the facets of Company matters including periodical Further, observations/ supervisory concerns arising • Quarterly returns on frauds monitoring system;
review of strategy and business plans, annual from inspection reports, if any, from regulators • Noting of various returns/reports filed with the regulatory
operating and capital expenditure budgets, loan governing respective subsidiaries of the Company, authorities/Stock Exchanges;
disbursements, fund raising proposals, default in penalties levied, if any, and impact of key regulatory • Annual review of the Internal Audit Report/ Action taken
financial obligations, if any, NPA Position, LRM and ALM changes are also placed before the Board for its review. report provided by the Registrar and Transfer Agent.
position, credit ratings, ESG initiatives including BRSR
and CSR initiatives, investments and exposure limits, Notice of meetings and agenda Frequency and Calendar of Meetings
RBI Inspection reports, approval and adoption of
The Company sends the notice of the meetings The Board and Committee meetings are pre-scheduled, and an annual calendar of the meetings is circulated
quarterly/half-yearly/annual results, risk assessment
accompanied by detailed agenda and agenda notes to the Directors well in advance.
and minimisation procedures, stakeholder relationship
setting out the business to be transacted at the
matters, Policies, compliance report(s) of all laws The frequency of meetings scheduled and held are higher than the statutory requirement to enable review
Meeting(s) to each Director at least seven days before
applicable to the Company, as well as steps taken to of all Company matters at periodical intervals. The statutory frequency and number of meetings held during
the date of the Board and Committee Meetings except
rectify instances of non-compliances, if any, review FY2023 are given below:
in case of shorter notice to transact urgent business.
of major legal issues, minutes of the Committees of
All the agenda items are supported by detailed notes,
the Board, major accounting provisions and write-offs, Annual
rationale for proposal, documents, and presentations, frequency of
corporate restructuring, details of any joint venture or No. of Meetings
if any, to enable the Board to take informed decisions. Nature of Meeting meeting as
collaboration agreement(s) etc. prescribed
held in FY2023
The Company has a well-established framework statutorily
Information and presentations at Meetings for the meetings of the Board and its Committees Board 4 7
To enable the Board to discharge its responsibilities which seeks to systematise the decision-making
Audit Committee 4 6
effectively and take informed decisions, the Vice- process at the Board and Committee meetings in an
Nomination and Remuneration Committee 1 5
Chairman & Managing Director (“VC and MD”) apprises informed and efficient manner. A summary of all the
proposals forming part of the agenda is circulated to Stakeholders Relationship Committee 1 2
the Board at every quarterly Board Meeting on the
the Board for ease of reference. Further, a summary Risk Management Committee 2 5
overall performance of the Company, as well as the
current market conditions including the Company’s of the minutes is also circulated post conclusion of Corporate Social Responsibility Committee Not specified 3
business and the regulatory scenario, followed by the meeting.
presentations by the Chief Financial Officer (“CFO”) of Process for preparation of Agendas for Board and to seek their inputs before dispatch of Agenda.
During FY2023, no Board meeting was held at a
the Company on Financial performance of Company, its Committees Members of the Board/Committees are encouraged
shorter notice, except the meeting held on 26th
The agenda of the Board and the Committee Meeting to freely express their views on the agenda items
September 2022 and 4th October 2022.
are prepared in consultation with the Chairman, VC and are assisted with necessary clarifications and
& MD, and the CFO. The Agenda proposals are also information that they might need with respect to
shared with Chairpersons of respective Committees the Agenda even prior to the meeting to enable

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meaningful participation at the meeting. Summary of subsequent meetings of the Board and the Committee POLICY ON REMUNERATION OF DIRECTORS The eligible Non-Executive Directors are paid a sitting
Board/ Committee proposals is also shared prior to for its review. AND THE POLICY ON REMUNERATION OF fee for attending each Meeting of the Board and
the meeting for easy reference. KEY MANAGERIAL PERSONNEL, SENIOR Committees thereof as under. Further the Board,
PERFORMANCE EVALUATION OF BOARD, ITS MANAGEMENT AND OTHER EMPLOYEES OF considering the enhanced regulatory provisions,
Secured Electronic Board Portal COMMITTEES AND DIRECTORS THE COMPANY increased responsibilities of the directors and to
During the year under review, the Company migrated The Act and the Listing Regulations stipulate Your Company has also adopted the Policy on recognise and reward the contribution made by
to a new secured Board portal which inter -alia the evaluation of the performance of the Remuneration of Directors and the Policy on the Independent Directors and the Non-Executive
provides a one stop and seamless solution for access Board, its Committees, Individual Directors, and Remuneration of Key Managerial Personnel, Senior Directors, at its meeting held on 28 th April 2023
and archive to Board / Committee materials to all the Chairperson. Management, and other Employees of the Company revised the sitting fees payable to Independent
the Directors. in accordance with the provisions of Sub-section (4) of Directors and Non-Executive Directors (not receiving
The Company has formulated a process for remuneration from Holding Company) for attending
Section 178 of the Act. The Policy was amended twice
performance evaluation of the Independent the Committee Meetings. Details of the sitting fees
Post meetings follow up procedure during the year under review, details whereof are as
Directors, the Board, its Committees and other as applicable for Board and Committee meetings is
An Action Taken Report on the key decisions taken/ mentioned hereunder:
individual Directors which includes criteria for as under:
suggestions made at Board and Committee Meetings performance evaluation of the Non-Executive Basis the recommendation of the Nomination and
is recorded with details of owner and Target date Directors and Executive Directors. Remuneration Committee (“NRC”), the Board of Revised
and update thereof is placed and discussed at the Directors at its meeting held on 2nd May 2022 had Sitting Fees
Sitting
per meeting
approved the revised policy to inter-alia include the Meetings fees w.e.f.
per Director th
An annual performance evaluation exercise was carried in compliance with the applicable provisions of the clawback/ malus clause in the terms and conditions of (FY2023) (₹)
28 April
2023 (₹)
Act, Listing Regulations, the Company’s Code of Independent Directors and the criteria and methodology of appointment of Key Managerial Personnel (including
performance evaluation approved by the NRC as under: Board of Directors 1,00,000 No change
Executive Directors) and Senior Management, in
- Audit Committee, 50,000 60,000
certain circumstances.
Evaluating body Evaluatee Broad criteria and parameters of evaluation Process of evaluation - Risk Management
Further, basis recommendation of the NRC, the Board Committee
The Board, the The Board as a whole Review of fulfilment of Board’s responsibilities Internal assessment through
NRC and the including Strategic Direction, financial reporting, a structured and separate of Directors have approved the revision to the existing - Nomination and
Independent risk management framework, ESG, Grievance rating-based questionnaire Policy, effective 25th November 2022, to make it Remuneration Committee
Directors redressal, succession planning etc., knowledge for each of the evaluations. consistent with the statutory requirements specified - Asset Liability Committee
of industry trends, diversity of Board etc. and The evaluation is carried out in the RBI guidelines dated 29 th April 2022. - IT Strategy Committee
feedback to improve Board’s effectiveness on a secured online portal
The said Policy is uploaded on the website of - Committee for Strategic
The Board The Committees of the Structure, composition, attendance and whereby the evaluators are
the Company and can be accessed at https:// Investments
Board (separately for each participation, meetings of Committees, able to submit their ratings
Committee) effectiveness of the functions handled, and qualitative feedback, www.mahindraf inance.com/investors/disclosures- - Stakeholders Relationship 30,000 60,000
Independence of the Committee from the Board, details of which are reg-46-62/corporate-governance#MMFSL-policies Committee
contribution to decisions of the Board, etc. accessible only to the NRC - Corporate Social
The Board, the Independent Directors Qualifications, experience, skills, independence Chairperson. REMUNERATION TO DIRECTORS Responsibility Committee
NRC, and the including those seeking criteria, integrity of the Directors; contribution The NRC also reviews The eligible Non-Executive Directors are paid - Digital and AI Committee
Independent re-appointment, Non - and attendance at meetings; ability to function the implementation and
remuneration in the form of sitting fees and The Company has not granted Stock Options to
Directors Independent Directors, and as a team and devote time, fulfilment of compliance of the evaluation
the VC & MD (excluding the functions, ability to challenge views of others in exercise done annually. commission within the limits prescribed under the Act. any of its Non-Executive Directors during the year
Director being evaluated) a constructive manner, knowledge acquired with The results and outcome The remuneration payable to eligible Non-Executive under review.
regard to the Company’s business, understanding are evaluated, deliberated Directors is recommended by the NRC to the Board
of industry, fairness and transparency of Directors subject to approval of Members of None of the Non-Executive Directors received
upon and noted by the
demonstrated, adequacy resource staffing etc. Independent Directors, the the Company. remuneration in excess of 50% of the total
The Board, the Chairperson Skills, expertise, effectiveness of leadership, NRC, and the Board at their remuneration paid to all the Non-Executive Directors
NRC and the effective engagement with other Board respective meetings. The NRC while deciding the basis for determining during the year ended 31 st March 2023.
Independent members during and outside meetings, the remuneration to the eligible Non-Executive
Directors allocation of time provided to other Board Directors, takes into consideration various relevant Remuneration of Executive Directors includes
members at the meetings and ability to steer factors, including the overall compensation guidelines salary, perquisites, allowances, benefits, amenities,
the meetings, commitment, impartiality, ability of the Mahindra Group pertaining to commission, retirals, viz. superannuation including gratuity and
to keep Shareholders’ interests in mind, effective current trends and practices in relevant industries, provident fund and stock options. The remuneration
engagement with shareholders during general of Directors is recommended by the NRC to the Board,
the market trends in terms of compensation levels,
meetings etc. which is subject to approval of the Shareholders of
responsibilities undertaken by the Directors such as
The questionnaires for performance evaluation are Committees and individual Directors, assessed via Chairpersonship of Committees, their contribution the Company.
comprehensive and in alignment with the guidance online Portal through series of questions. The results in enhancing stakeholders’ value resulting in overall The NRC while deciding the basis for determining the
note on Board evaluation issued by the Securities of evaluation were encouraging showing high level of growth of the Company and such other factors as the remuneration of the Executive Directors takes into
and Exchange Board of India (“SEBI”), vide its circular engagement of Board and its Committees performing NRC may deem fit. consideration the individual performance and the
no. SEBI/HO/CFD/CMD/CIR/P/2017/004 dated 5th its role with effective oversight and providing guidance business performance. The business performance is
Pursuant to the approval granted by the Members
January 2017 and are in line with the criteria and to Management. The results of the evaluation were evaluated using a Balanced Score Card (“BSC”) while
of the Company at the Twenty-fifth Annual General
methodology of performance evaluation approved by shared with the Board, Chairman of respective individual performance is evaluated on Key Result
Meeting held on 24th July 2015, the eligible Non-
the NRC. committees and individual Directors. Areas (“KRAs”). Both the BSC and KRAs are evaluated
Executive Directors are paid aggregate commission
Based on the results of the evaluation, the Board up to a maximum of 1% of the net profits of the at the end of the financial year to arrive at the BSC
Outcome and results of the performance evaluation rating of the business and performance rating of the
has agreed on an action plan to further improve Company for each financial year, as computed in the
All the Directors of the Company as on 31 st March the effectiveness and functioning of the Board. manner laid down in Section 198 of the Act or any individual. The performance pay is paid annually basis
2023 had participated in the evaluation process. The suggestions from previous evaluations were statutory modification(s) or re-enactment(s) thereof. the Company and individual performance.
The Directors have expressed satisfaction with the implemented by the Company during FY2023.
criteria for evaluation of performance of Board, its

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Directors’ remuneration for FY2023: Considering the performance of the Company and opinion of the Board, may threaten the existence of
Executive Directors (“ED”) significant contribution made by the Independent the Company. Risk management process has been
Directors, the commission amount has been increased established across the Company and is designed
(₹ in Crore) from ₹ 30 lakhs per annum for FY2022 to ₹ 33 lakhs to identify, assess and frame a response to threats.
Perquisites per annum for FY2023. Further, it is embedded across all the major functions
including Performance ESOPS and revolves around the goals and objectives of
Name of the Directors Basic Salary Retirals Total
allowances Pay exercised During 2022-23, the Company did not advance loans
and benefits the Company. Through the Board approved Risk
to any of its Directors, their relatives or any firms in
Management Policy, a risk conscious culture is led
Mr. Ramesh Iyer, VC & MD* 1.26 3.45 2.07 - 0.38 7.16 which they are interested.
across the Company.
Mr. Amit Raje, WTD** 0.63 1.87 1.52 4.35 0.07 8.44
CODES OF CONDUCT The Board of Directors monitor and manage the risks
*Mr. Iyer is entitled to an aggregate incentive of ₹ 31.96 Lakhs, to be paid in FY2024 and FY2025.
In compliance with Regulations 17(5) and 26(3) of faced by the Company through its committees – the
**Mr. Raje was earlier associated with the Holding Company viz. Mahindra & Mahindra (“M&M”) as Executive Vice President – the Listing Regulations, the Board has laid down Risk Management Committee, the Asset Liability
Partnerships & Alliances, wherein he was granted 97,783 ESOPs of M&M at an exercise price of ₹ 5/- per share. While he was paid Codes of Conduct for Board Members and for Committee and the Audit Committee.
remuneration from the Company during his stint with the Company as WTD, out of 43,458 ESOPs of M&M vested and exercisable by
him, he exercised 34,028 ESOPs during FY2023. The unvested options on the date of his separation from the Company, have lapsed. Senior Management and Employees of the Company The Risk Management framework adopted by the
(“Codes”). Company is discussed in detail in the Management
Details of ESOPs granted, vested, and exercised by Mr. Ramesh Iyer, VC and MD are given as under:
These Codes have been posted on the Company’s Discussion and Analysis Report, forming part of this
Date of grant 24th October 2018 website at the web-link: https://www.mahindrafinance. Annual report.
No. of ESOPs granted under ESOS 2010 Scheme 2,32,468 com//investors/disclosures-reg-46-62/corporate-
governance#MMFSL-policies. Web based Portal for ensuring compliances
Exercise Price 129,149 ESOPs at exercise price of ₹ 2 per share
The Company has a web-based portal for ensuring
103,319 ESOPs at exercise price of ₹ 50 per share* The Board has also laid down a Code of Conduct for
compliances with all applicable laws and statutory
Vesting period Over 5 equal instalments, vesting annually Independent Directors pursuant to Section 149(8)
obligations. The said portal provides for timely alerts
Vesting Conditions Time based read with Schedule IV of the Act, which is a guide to
and advisory to ensure compliances within stipulated
No. of ESOPs vested up to 31st March 2023 1,80,810
professional conduct for Independent Directors of
timelines. The Compliance certificate every quarter is
the Company.
No. of ESOPs exercised up to 31st March 2022 1,29,150 being generated from the said Portal.
No. of ESOPs vested during FY2023 51,660 All the Board Members and Senior Management
No. of vested ESOPs exercised during FY2023 Nil Personnel have affirmed compliance with these COMMITTEES CONSTITUTED BY THE BOARD
Codes. A declaration signed by the Vice-Chairman & The Committees constituted by the Board focus on
No. of ESOPs outstanding (unvested) as on 31st March 2023 51658
Managing Director to this effect is enclosed at the end specific areas and take informed decisions within the
*ESOPs augmented by equal no. of Rights Options on account of Right Issue in the ratio 1:1 made in August 2020. of this Report. framework of delegated authority and make specific
Notes: recommendations to the Board on matters within their
1. In addition to ESOPs granted on 24th October 2018, as shown in the above table, 3,75,289 ESOPs which were granted CEO & CFO CERTIFICATION areas or purview. The decisions and recommendations
earlier, have been fully vested and exercised by 31 st March 2022. As on 31 st March 2023, he holds 18,13,750 equity shares As required under Regulation 17(8) read with Part of the Committees are placed before the Board for
(0.15%) in the Company.
B of Schedule II of the Listing Regulations, the information or for approval, as required.
2. Mr. Ramesh Iyer has also received an amount of Rs. 89.23 lakhs during FY2023 upon settlement of fourth vesting of the Vice-Chairman & Managing Director (“MD”) and the
employee’s phantom stock options granted by Mahindra Insurance Brokers Limited, subsidiary of the Company. Pursuant to RBI Master Direction - Non-Banking
Chief Financial Officer of the Company (“CFO”) have
Financial Company - Systemically Important Non-
3. The notice period for the VC and MD is three months. Performance Pay is performance linked. Other components are fixed. jointly certified to the Board regarding the Financial
There is no provision for the payment of severance fees. Deposit taking Company and Deposit taking Company
Statements and internal controls relating to financial
(Reserve Bank) Directions, 2016, as amended, the CEO/
Non-Executive Directors reporting for the year ended 31 st March 2023.
MD or the Executive Director (ED) should head the
The MD and the CFO also jointly give quarterly Asset Liability Committee. Hence all the Committees
₹ in crores
certification on financial results while placing the of the Board except Asset Liability Committee are
Commission for Commission for the year ended
the year ended 31st March 2023 provided as financial results before the Board in terms of chaired and led by an Independent Director.
Sitting Fees for
Name of the Directors 31st March payable in the accounts of the Regulation 33(2) of the Listing Regulations.
FY2023 (Gross)
2022 paid in Company for the year under The composition, role and functioning of these
FY2023 review Committees is in compliance with the applicable
RISK MANAGEMENT FRAMEWORK
Non-Executive Non-Independent Directors (“NED”) provisions of the Act, Listing Regulations and applicable
Risk management forms an integral part of the RBI Directions. Further, the constitution and role of
Dr. Anish Shah Nil Nil Nil Company’s business. As a lending institution, the the Audit Committee, Nomination and Remuneration
Mr. Amit Kumar Sinha Nil Nil Nil Company is exposed to various risks that are related Committee, Risk Management Committee, Asset
Mr. Siddhartha Mohanty 0.03* N.A. 0.31* to its lending business and operating environment. Liability Committee and IT Strategy Committee is also
Independent Directors (“ID”) Your Company has a well-defined risk management in consonance with the Corporate Governance Master
Mr. C.B. Bhave 0.17 0.30 0.33 framework in place. The risk management framework Directions issued by the Reserve Bank of India and
Mr. Dhananjay Mungale 0.18 0.30 0.33
works at various levels across the Company. The risk Internal Guidelines on Corporate Governance.
management framework is based on assessment of
Mr. Milind Sarwate 0.21 0.30 0.33 During the year under review, all the recommendations
all risks through proper analysis and understanding
Ms. Rama Bijapurkar 0.13 0.30 0.33 of the underlying risks before undertaking any received from all its Committees were accepted by
Dr. Rebecca Nugent 0.10 0.30 0.33 transactions and changing or implementing processes the Board.
Mr. Diwakar Gupta 0.03 N.A. 0.08** and systems. This risk management mechanism is
supported by regular review, control, self-assessments Internal Guidelines on Corporate Governance.
* The Sitting fees has been paid to Life Insurance Corporation of India (LIC) and Commission would be paid to LIC. and monitoring of key risk indicators. In accordance with the provisions of the Listing
** Appointed w.e.f. 1 st January 2023 and hence commission would be paid on a proportionate basis. Regulations and Master Direction – Non-Banking
The Risk Management structure includes identification
Financial Company – Systemically Important Non-
of elements of risk, including those which in the

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Management Report on Standalone  onsolidated
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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, as amended the Audit Committee Meetings of Audit Committee
Company has in place the Internal Guidelines on Corporate Governance and the same is also published on the The Audit Committee of the Board is constituted in During FY2023, the Audit Committee met six times i.e.
website of the Company, for the information of the stakeholders. compliance with the provisions of Section 177 of the on 2nd May 2022, 28th July 2022, 20th September 2022,
Summary of the 9 Committees and their constitution as on 31 st March 2023 in nutshell is as under: Act and Regulation 18 of the Listing Regulations. 2nd November 2022, 3rd February 2023 and 16th March
All the Members of the Committee are financially 2023. Quorum was present at all Meetings and the gap
literate and possess strong accounting and related between two Meetings did not exceed 120 days.
financial management expertise. The Chairman of the
The Audit Committee also periodically meets the
Audit Committee is an Independent Director and was
Statutory Auditors and Internal Auditors of the
Board present at the 32nd AGM of the Company to address
Company without presence of the Management of
the Shareholders’ queries pertaining to Annual
the Company to assess the effectiveness of the audit
Accounts of the Company.
processes and address any concerns.

Audit Committee Constitution:

Audit Committee Nomination and Stakeholders’ Corporate Social
Remuneration Relationship Responsibility No. of members as on
© Mr. C. B. Bhave Composition Statutory Requirement
Committee Committee Committee 31st March 2023
Mr. Dhananjay Mungale
© Mr. Dhananjay © Ms. Rama Bijapurkar © Mr. Dhananjay Total Members Minimum 3 Directors 6
Mr. Milind Sarwate
Mungale Mr. Ramesh Iyer Mungale Independent Directors Minimum 2/3 Members 5 (more than 2/3rd)
Ms. Rama Bijapurkar
Dr. Anish Shah Mr. C. B. Bhave Mr. Ramesh Iyer Non- Executive Non- Independent Director - 1
Mr. Amit Kumar Sinha
Mr. C. B. Bhave Ms. Rama Bijapurkar
Mr. Diwakar Gupta
Mr. Milind Sarwate Audit Committee composition as at 31st March 2023 and attendance at the meetings held during FY2023
Mr. Diwakar Gupta
Membership (dd.mm.yyyy)
Attendance and
Audit Committee Members Category Date of Date of % Attendance
Meetings
appointment cessation
Mr. C. B. Bhave ID 10.02.2015 - 6 out of 6 100%
(Chairperson)
Risk Management IT Strategy Asset and Liability Mr. Dhananjay Mungale ID 17.02.2000 - 6 out of 6 100%
Committee Committee* Committee* Mr. Milind Sarwate ID 09.04.2019 - 6 out of 6 100%
© Mr. C. B. Bhave © Mr. Milind Sarwate © Mr. Ramesh Iyer Ms. Rama Bijapurkar ID 27.10.2008 - 3 out of 6 50%
Mr. Ramesh Iyer Mr. Ramesh Iyer Mr. Dhananjay Mungale Dr. Anish Shah NED 18.03.2016 02.05.2022 0 out of 1 0%
Mr. Dhananjay Mungale Mr. C. B. Bhave Mr. Milind Sarwate
Mr. Amit Kumar Sinha NED 02.05.2022 - 4 out of 5 80%
Ms. Rama Bijapurkar Dr. Rebecca Nugent Mr. Diwakar Gupta
Mr. Diwakar Gupta ID 03.02.2023 - 1 out of 1 100%
Mr. Milind Sarwate Mr. Amit Kumar Sinha
Basis their requests, Ms. Rama Bijapurkar was granted Leave of Absence (“LOA”) from attending Audit Committee meeting held
Mr. Diwakar Gupta on 28 th July 2022, 20 th September 2022, 3rd February 2023 and Dr. Anish Shah was granted LOA from attending the Audit
Committee meeting held on 2nd May 2022.

Terms of reference of Audit Committee Statutory and the Internal Auditors and meet with
The terms of reference of this Committee are very them to discuss their findings, approve transactions of
wide and are in line with the regulatory requirements the Company with related parties including subsequent
mandated by the Act and Part C of Schedule II of the modifications thereof and grant omnibus approvals
Digital and AI Committee for for related party transactions subject to fulfilment of
Committee Strategic Investments Listing Regulations. The Board at its meeting held on
3rd February 2023, enhanced the terms of reference certain conditions, recommendation for appointment/
(Voluntary Initiative)*
© Mr. Dhananjay of the Committee to align with the amendment in the re-appointment and remuneration of Auditors,
© Dr. Rebecca Nugent Mungale review and monitor the Auditor’s independence and
Listing Regulations.
Mr. Ramesh Iyer Dr. Anish Shah performance, effectiveness of the audit process,
Mr. Milind Sarwate Mr. Ramesh Iyer Besides having access to all the required information suggestions and other related matters, scrutinise
Mr. Amit Kumar Sinha Mr. Milind Sarwate
from the Company, the Committee can obtain external intercorporate loans and investments, reviewing with
professional advice whenever required. The Committee the Management the statement of uses/ application
acts as a link between the Statutory and the Internal of funds raised through an issue as well as the funds
Auditors and the Board of Directors of the Company. utilised for the purpose other than those stated in the
The terms of reference include, inter alia, oversight offer document/ prospectus/ notice etc.
of the Company’s financial reporting process and the
disclosure of its financial information, reviewing with The Audit Committee has been granted powers as
the Management the quarterly and annual financial prescribed under Regulation 18 (2)(c) and reviews all
statements and the Auditors’ Report thereon before the information as prescribed in Regulation 18(3) read
© Chairperson submission to the Board for approval, select and with the Paragraph B of Part C of Schedule II of the
establish accounting policies, review reports of the Listing Regulations.
*In addition to the Board members, the said Committee includes employees who are part of the
Senior Management and external consultant, as Members of the Committee, details of which are
mentioned in this report.

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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
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Separate meetings between the Chief Internal (“CRAs”) at a separate Audit Committee Meeting on NRC Constitution:
Auditor and the Audit Committee annual basis. Separate meeting with CRAs was held
on 16th March 2023 to inter alia discuss matters No. of members as on
Separate meetings between the Chief Internal Auditor Composition Statutory Requirement
31st March 2023
and the Audit Committee, without the presence of including related party transactions, internal financial
controls and other material disclosures made by Total Members Minimum 3 Directors 5
Management, were enabled to facilitate free and frank
the Company. Independent Directors Minimum 2/3 Members 4 (more than 2/3rd)
discussion amongst them. Four meetings were held on
2nd May 2022, 20 th September 2022, 2nd November Non- Executive Non- Independent Director - 1
2022 and 16th March 2023. Invitees to Audit Committee Meetings
The VC & MD, Whole-time Director, Internal NRC composition as at 31st March 2023 and attendance at the meetings held during FY2023
Separate meetings between the Joint Statutory Auditor, Statutory Auditors, CFO, Head- Accounts,
Member since Attendance and
Auditors and the Audit Committee Treasury and Corporate Affairs, Chief Operating NRC Members Category
(dd.mm.yyyy) Meetings
% Attendance

Separate meetings between the Joint Statutory Officer (“COO”) and Chief Risk Officer (“CRO”) are
Mr. Dhananjay Mungale (Chairperson) ID 19.03.2014
Auditors and the Audit Committee, without the invited to attend the Audit Committee Meetings.
Mr. C. B. Bhave ID 18.03.2016
presence of Management, were enabled to facilitate The Company Secretary acts as a secretary to 5 out of 5 100%
the Committee. Mr. Milind Sarwate ID 23.09.2019
free and frank discussion amongst them. Three
meetings were held on 2nd May 2022, 20 th September Dr. Anish Shah NED 15.05.2020
2022 and 2nd November 2022 The key activities of the Audit Committee during Mr. Diwakar Gupta ID 03.02.2023* - -
FY2023
There was no change in the composition of NRC during performance evaluation of Board and its committees,
Separate Meeting with Credit Rating Agencies The details of key matters reviewed/ recommended/
the year except for appointment of Mr. Diwakar Gupta recommend remuneration of senior management to
In compliance with the provisions of SEBI Circular approved by the Audit Committee during FY2023 as
as Member of the Committee. the Board, determine overall compensation policies
No. SEBI/HO/ MIRSD/CRADT/CIR/P/2019/121 dated per the terms of reference, prescribed statutorily and
of the Company, and administer the “Mahindra &
4th November 2019, the Members of the Audit by the Board were as under:
Terms of reference of NRC Mahindra Financial Services Limited Employees’ Stock
Committee interact with the Credit Rating Agencies Option Scheme – 2010” and such further ESOP/ RSU
The terms of reference of this Committee are in line
with the regulatory requirements mandated in the Act Schemes as may be formulated from time to time and
Key Activities of the Audit Committee take appropriate decisions in terms of the concerned
and Part D of Schedule II of the Listing Regulations
and applicable RBI guidelines. Scheme(s).
Key Matters reviewed/ recommended to Board / approved by the Committee during FY2023 Frequency
The NRC has been vested with the authority to, inter The Committee is also empowered to opine, in respect
Recommended Quarterly, Half yearly and Annual Standalone and Consolidated financial statements/ results Q/A
alia, establish criteria for selection to the Board of the services rendered by a Director in professional
of the Company and other related matters
with respect to the competencies, qualifications, capacity, whether such Director possesses requisite
Recommended the appointment of the Joint Statutory Auditors and the fees payable to them along with E/A
experience, track record and integrity, and recommend qualification for the practice of the profession.
the fees payable for other permitted services to be rendered by the Statutory Auditors.
Reviewed the performance of the joint Statutory Auditors and Internal Auditors A candidates for Board Membership, develop and
recommend policies with respect to remuneration The key activities of the Nomination and
Reviewed the Management’s discussion and analysis of the financial condition and results of operations of A Remuneration Committee during FY2023
the Company of Board, KMPs, senior management and employees
of the Company commensurate with the size, nature The Committee reviewed/ recommended and approved
Reviewed the Directors’ Responsibility Statement A
of the business and operations of the Company, the matters during FY2023 as per the terms of
Reviewed the internal audit findings, the action taken status and other matters concerning the internal H establish Director retirement policies and appropriate reference, prescribed statutorily and by the Board.
audit functioning of the Company and its subsidiaries
succession plans, devise policy on Board Diversity, The key activities of the NRC are briefed as under:
Reviewed and granted prior omnibus/ specific approvals for transactions with related parties and review of A/Q
the same.
Key Activities of the Nomination and Remuneration Committee
Reviewed the Audited financial statements, in particular the investments made by all subsidiary companies Q
and all significant transactions and arrangements entered into by the subsidiary companies Key Matters reviewed/ recommended to Board / approved by the Committee during FY2023 Frequency
Reviewed the report and complaints, if any, under Whistle blower Policy and Report under the Sexual Q Recommended the appointment of Mr. Diwakar Gupta as Independent Director for the first term of five years E
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Noted the cessation of Directorship of Mr. Amit Raje and recommended that the said vacancy be not filled-up. E
Reviewed compliance of Insider Trading Regulations and Systems for Internal Controls for prevention of Q/A
Insider Trading Recommended the remuneration payable to Directors, KMPs and Senior Management. A

Evaluated internal financial controls and risk management systems P Noted the Fit and Proper declaration of Directors A

Reviewed with the management, the statement of uses/ application of funds raised through Private Q Noted the annual performance evaluation of Board and Committees for FY2022 A
Placement of Non-convertible Debentures Recommended the appointment of the Chief Compliance Officer of the Company, for a period of three years. E
Reviewed fraud monitoring report Q Recommended the appointment of Mr. Raul Rebello as the Managing Director – Designate, w.e.f. 3rd February E
Recommended to the Board the amendment to the Policy on Insider Trading, Expected Credit Loss Policy, E 2023
etc. Recommended the re-constitution of Audit Committee, NRC, RMC and ALCO E
Q-Quarterly; A-Annually; H–Half yearly; E-Event based, P-Periodically Recommended the amendment to the Policy on appointment of Directors, Senior Management and Succession E
Planning for orderly succession to the Board and Senior Management and Policy for Key Managerial Personnel,
Nomination and Remuneration Committee (“NRC”) Meetings of NRC Senior Management and other Employees.
The NRC of the Board is constituted in compliance During FY2023, the NRC met five times i.e. on 2nd Succession planning P
with the requirements of Section 178 of the Act and May 2022, 28th July 2022, 30 th September 2022, A-Annually; E-Event based; P-Periodically
Regulation 19 of the Listing Regulations. The NRC 1 st November 2022 and 2nd February 2023. All the
comprises all Non-Executive Directors. NRC is headed Meetings were well attended.
by an Independent Director.

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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Compliance with Fit & Proper Criteria for Directors Stakeholders Relationship Committee (“SRC”) Key Activities of the Stakeholders Relationship Committee
The Committee, in accordance with the Policy on The composition of the SRC of the Board satisfies
Key Matters reviewed/ recommended/ approved by the Committee during FY2023 Frequency
‘Fit and Proper’ Criteria for Directors, ensures the the requirements of Section 178 of the Act and
“Fit and Proper” status of Directors at the time of Regulation 20 read with Part D of Schedule II of the Reviewed compliances related to KFin Technologies Limited (“RTA/ KFin”) activities and Investor Related P
appointment and on a continuing basis, as prescribed Listing Regulations. SRC is headed by an Independent Compliances
by the Reserve Bank of India. Director. The Board at its meeting held on 3rd Reviewed the complaints received from fixed deposit holders and action taken thereon P
February 2023, enhanced the terms of reference of Noted the amount pertaining to Fixed Deposits, Dividend and shares transferred to IEPF P
All Directors of the Company have confirmed that
the Committee to include “the review of customer Reviewed various initiatives undertaken by the Company to enable the holders to claim their unclaimed P
they satisfy the “Fit and Proper” criteria as prescribed
grievances” as per the Fair Practice Code prescribed matured fixed deposits/ matured Debentures and interest accrued thereon/ unclaimed dividend, due for transfer
under the Master Direction - Non-Banking Financial
by the Reserve Bank of India. to IEPF.
Company - Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve Noted the report on Customer Grievance Redressal and Investor Complaints P
Meetings of the SRC
Bank) Directions, 2016 dated 1 st September 2016, Noted the release of equity shares from "Mahindra & Mahindra Financial Services Limited - Right Allotment P
as amended. During FY2023, the SRC met two times i.e. on 1 st Suspense Demat Account" to the demat accounts of eligible investors.
November 2022 and 2nd February 2023. All the Reviewed the Action Taken Report provided by RTA on the basis of the report from their Internal Auditor A
Meetings were well attended. Noted the status of transmission/ dematerialisation and issue of duplicate Share/ Debenture certificates P
Noted the service standards of RTA along with controls/ service timelines/ processes followed by RTA, via a P
SRC Constitution: presentation made by RTA at the meeting
No. of members as on A-Annually; P-Periodically
Composition Statutory Requirement
31st March 2023
Details of complaints/grievances received from
Total Members Minimum 3 Directors 3 Status of Complaints from Equity and Debenture
Investors and resolved by the Company during last 2 holders
FY2023
Independent Directors Minimum 1 2
years are given below.
Executive Directors - 1 Number of complaints at the beginning of the year 1
Status of Investor Complaints Number of complaints received during the year 5
SRC composition as at 31st March 2023 and attendance at the meetings held during FY2023
11 Number of complaints not solved to the 0
Membership (dd.mm.yyyy) satisfaction of security holder
Attendance and 3
SRC Members Category Date of Date of % Attendance Number of complaints pending at the end of the 0
Meetings
appointment cessation year
Ms. Rama Bijapurkar (Chairperson) ID 23.04.2015 - 5
Mr. C. B. Bhave ID 09.04.2019 - 2 out of 2 100% The investor complaints pertained to:
8 2
Mr. Ramesh Iyer ED 27.10.2005 - i. Shares: Non-receipt of Right issue Shares, non-
Mr. Amit Raje * ED 28.01.2021 28.07.2022 0 out of 0 0% 3 receipt of Dividend etc.

Ms. Brijbala Batwal, Company Secretary is the by the Company in respect of services being rendered ii. Public NCDs: Non-receipt of Interest and
2021-22 2022-23
Compliance Officer of the Company under Regulation by the Registrar & Transfer Agent (RTA), review of redemption warrant.
Equity Shareholders Debenture holders
6 of the Listing Regulations and the Nodal Officer to Annual Audit Report submitted by the independent
ensure compliance with the IEPF Rules. auditors on the annual internal audit conducted on
the RTA operations as mandated by SEBI, review of Corporate Social Responsibility (“CSR”) Committee
Terms of reference of SRC various measures and initiatives taken by the Company
The CSR Committee of the Board is constituted in compliance with the requirements of Section 135 of the
The role and terms of reference of the Committee for reducing the quantum of unclaimed dividends,
Act, led by an Independent Director.
covers the areas as contemplated under Regulation ensuring timely receipt of dividend warrants/annual
20 read with Part D of Schedule II of the Listing reports/statutory notices by the Shareholders of
Meetings of CSR Committee
Regulations and Section 178 of the Act, as applicable, the Company.
During FY2023, the CSR Committee met three times i.e. on 27th April 2022, 8 th September 2022 and 2nd
besides the other terms as referred by the Board Further, a report on Customer Grievance Redressal February 2023. All Meetings were well attended.
of Directors. pertaining to grievances/ complaints received from
The Committee meets, as and when required, to inter- the Company’s customers is also placed before the CSR Constitution:
alia, deal with matters relating to transfer/transmission Committee for its review.
of shares and debentures, approve requests for issue No. of members as on
Composition Statutory Requirement
The key activities of the Stakeholders Relationship 31st March 2023
of duplicate share/ debenture certificates, issue of
new Share Certificate(s) (including for transfer to the Committee during FY2023 Total Members Minimum 3 Directors 3
Investor Education and Protection Fund, as per the The Committee reviewed/ recommended and approved Independent Directors 1 2
provisions of the Act and Rules framed thereunder), the matters during FY2023 as per the Terms of Executive Director - 1
monitor redressal of grievances of security holders reference, prescribed statutorily and by the Board.
including customers, review of measures taken for The key activities of the Stakeholders Relationship CSR Committee composition as at 31st March 2023 and attendance at the meetings held during FY2023:
effective exercise of voting rights by Shareholders, Committee are briefed as under:
review of adherence to the service standards adopted Member since Attendance and
CSR Committee Members Category % Attendance
(dd.mm.yyyy) Meetings
Mr. Dhananjay Mungale ID 09.04.2019
(Chairperson)
3 out of 3 100%
Ms. Rama Bijapurkar ID 09.04.2019
Mr. Ramesh Iyer ED 15.03.2013

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Analysis Governance Statements Statements
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There was no change in the composition of the undertaken and also to monitor the CSR Policy There was no change in the composition of the Risk review periodically the Risk Management Policy and
Corporate Social Responsibility Committee during periodically, etc. Management Committee during the year except for strategy followed by the Company.
the year. appointment of Mr. Diwakar Gupta as Member of
The scope of the Committee also includes, inter alia, Ms. Mallika Mittal acts as the Chief Risk Officer (“CRO”)
the Committee.
the formulation and recommendation to the Board of the Company, to oversee and strengthen the Risk
Terms of reference of CSR
for its approval and implementation, the Business management function.
The CSR Committee has been constituted by the Board Terms of reference of RMC
Responsibility (“BR”) Policy (ies) of the Company,
of Directors with powers, inter alia, to make donations/ Regulation 21 of the Listing Regulations mandates The CRO along with members of the Senior
undertake periodical assessment of the Company’s
contributions to any Charitable and/or CSR projects constitution of the Risk Management Committee. Your Ma na gement a ppr ise s the R isk Ma na gement
BR performance, review the draft BR Report and
or programs to be implemented directly or through Company has in place a Risk Management Committee Committee and the Board on the risk assessment,
recommend the same to the Board for its approval
eligible executing agency(ies), of at least two percent even before Clause 49 of the erstwhile Listing process of identifying and evaluating risks, major risks
and inclusion in the Annual Report of the Company.
of the Company’s average net profits during the three Agreement came into effect. The Risk Management as well as the movement within the risk grades, the
immediately preceding Financial Years in pursuance of The CSR Policy is hosted on the Company’s Committee was constituted by the Board at its root causes of risks and their impact, key performance
its CSR Policy for the Company’s CSR initiatives. website and can be accessed at web-link: https:// Meeting held on 28th January 2008 to manage the indicators, risk management measures and the steps
www.mahindrafinance.com//investors/disclosures- integrated risk, inform the Board about the progress being taken to mitigate these risks.
The role of CSR Committee includes formulating reg-46-62/corporate-governance#MMFSL-policies. made in implementing a risk management system and
and recommending to the Board an annual action
plan consisting of: (i) list of approved projects or The key activities of the Corporate Social The key activities of the Risk Management Committee during FY2023
programs to be undertaken within the purview of Responsibility Committee during FY2023
Schedule VII of the Act; (ii) manner of execution of The Committee reviewed/ recommended and approved the matters during FY2023 as per the Terms of
The Committee reviewed/ recommended and approved reference, prescribed statutorily and by the Board. The key activities of the Risk Management Committee are
such projects; (iii) modalities of utilisation of fund;
the matters during FY2023 as per the Terms of as under:
(iv) implementation schedules; (v) monitoring and
reference, prescribed statutorily and by the Board. The
reporting mechanism for the projects; (vi) details of
key activities of the Corporate Social Responsibility Key Activities of the Risk Management Committee
need and impact assessment, if any, for the projects
Committee are as under:
Key Matters reviewed/ recommended/ approved by the Committee during FY2023 Frequency
Key Activities of the Corporate Social Responsibility Committee Reviewed the risks, Risk Management Report, Risk Mitigation measures as prescribed under the Risk Q
Management Policy along with extreme risks their impact, likelihood and exposure
Key Matters reviewed/ recommended to Board / approved by the Committee during FY2023 Frequency
Noted the Risk Assessment and minimisation procedures P
Reviewed the CSR funds spent towards CSR Projects/ activities for FY2022 P
Recommended various Product Policies, Policy on Internal Capital Adequacy Assessment Process (ICAAP Policy), etc. E
Recommended BRR and CSR reports for approval and inclusion in the Annual Report A
Recommended the Internal Capital Adequacy Assessment Process (ICAAP) framework and Risk Appetite E
Recommended Annual Action Plan of the Company for FY2023 A Statement (RAS).
Reviewed the Company’s Business Responsibility Performance P Q-Quarterly; E-Event based; P- Periodically
Recommended the Business Responsibility and Sustainability Report Policy and amendments to the Corporate E
Social Responsibility Policy Committee for Strategic Investments (“CSI”) and reviewing performance of the subsidiaries and
A-Annually; E-Event based; P-Periodically Terms of reference of CSI make necessary recommendations to the Board from
time to time, including disinvestments.
The Committee for Strategic Investments of the
Risk Management Committee (“RMC”)
Board is constituted with powers to evaluate and
The RMC of the Board is constituted in compliance with Regulation 21 of the Listing Regulations and comprises Meetings of CSI
scrutinise significant investments/funding including
of all Board Members, led by an Independent Director. but not limited to business acquisitions, reviewing and During FY2023, CSI met once i.e. on 20 th October
monitoring existing investments in Subsidiaries, Joint 2022 to approve the proposal regarding acquisition of
Meetings of RMC Venture(s), and other group companies, overseeing remaining 20% stake in Mahindra Insurance Brokers
During FY2023, the RMC met five times on 27th April 2022, 27th July 2022, 1 st November 2022, 2nd February Limited, subsidiary of the Company.
2023 and 15th March 2023. All meetings were well attended.
CSI Committee composition as at 31st March 2023 and attendance at the meeting held during FY2023
RMC Constitution:
Member since Attendance and
Members of the Committee for Strategic Investments Category % Attendance
(dd.mm.yyyy) Meetings
No. of members as on
Composition Statutory Requirement
31st March 2023 Mr. Dhananjay Mungale (Chairperson) ID 20.03.2015
Total Members Minimum 3 Directors 6 Mr. Milind Sarwate ID 09.04.2019 1 out of 1 100%
Independent Directors Minimum 1 5 Mr. Ramesh Iyer ED 09.04.2019
Executive Director - 1 Dr. Anish Shah NED 23.03.2017 0 out of 1 0%
Basis his request, Dr. Anish Shah was granted leave of absence from attending CSI Committee meeting held on 20 th October 2022.
RMC composition as at 31st March 2023 and attendance at the meetings held during FY2023
There was no change in the composition of the CSI during the year.
Member since Attendance and
RMC Members Category % Attendance
(dd.mm.yyyy) Meetings Asset Liability Committee (“ALCO”)
Mr. C. B. Bhave (Chairperson) ID 10.02.2015 The Asset Liability Committee of the Board is constituted in compliance with the RBI requirements.
Mr. Dhananjay Mungale ID 28.01.2008
Ms. Rama Bijapurkar ID 23.01.2009 5 out of 5 100% Meetings of ALCO
Mr. Milind Sarwate ID 09.04.2019 During FY2023, the Committee met four times i.e. on 27th April 2022, 27th July 2022, 1 st November 2022 and
Mr. Ramesh Iyer ED 02.02.2022 2nd February 2023. All Meetings were well attended.
Mr. Diwakar Gupta ID 03.02.2023 1 out of 1 100%

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ALCO composition as at 31st March 2023 and attendance at the meetings held during FY2023 Mr. C.B. Bhave was granted Leave of Absence (“LOA”) attended by the CTO and other senior persons from
from attending IT Strategy Committee meeting held IT team.
Membership (dd.mm.yyyy) on 29 th August 2022.
Attendance and
ALCO Members Category Date of Date of % Attendance Terms of Reference of ITSC
Meetings
appointment cessation There was no change in the composition of the IT
Strategy Committee during the year. The scope of the Committee inter alia, includes
Mr. Ramesh Iyer (Chairperson) ED 25.04.2011 - 4 out of 4 100% review and approval of IT strategy and policy
Mr. Milind Sarwate ID 09.04.2019 - 4 out of 4 100% Mr. Rajesh Doshi, Former Director-IT, NSDL, Special documents, cyber security arrangements, IT
Mr. Dhananjay Mungale ID 12.09.2001 - 4 out of 4 100% Invitee and Mr. Mohit Kapoor, EVP-Group CTO outsourcing policies, data privacy and controls,
Mr. Amit Raje ED 28.01.2021 30.11.2022 3 out of 3 100% (Mahindra Group) and head of technology of MMFSL, disaster recovery and any other matter related to
are permanent Invitees to the Committee. The IT governance.
Mr. Diwakar Gupta ID 03.02.2023 - - -
meetings of the IT Strategy Committee are also
Mr. Raul Rebello Chief Operating Officer, 02.02.2022 - 4 out of 4 100%
MD & CEO -Designate
The key activities of the IT Strategy Committee during FY2023
Mr. Vivek Karve Chief Financial Officer 02.02.2022 - 4 out of 4 100%
The Committee reviewed/ recommended and approved the matters during FY2023 as per the Terms of
Mr. Dinesh Prajapati Head - Accounts, 02.02.2022 - 4 out of 4 100%
reference, prescribed statutorily and by the Board. The key activities of the IT Strategy Committee are briefed
Treasury and
Corporate Affairs as under:
Note – Mr. Raul Rebello and Mr. Dinesh Prajapati hold 355 (0.00%) and 1,86,554 (0.02%) shares respectively, in the Company as
on 31 st March 2023. Key Activities of the IT Strategy Committee

Terms of reference of ALCO management requirements. It also reviews the liquidity Key Matters reviewed by the Committee during FY2023 Frequency

The Asset Liability Committee was constituted by position based on future cash flows. Information technology strategy, projects and initiatives P
the Board in 2001. It reviews the working of the Cyber security posture P
Asset Liability Management Committee, its findings The key activities of the Asset Liability Committee Data privacy roadmap and controls P
and reports in accordance with the guidelines of during FY2023 Cyber security and major information technology incidents P
the Reserve Bank of India ("RBI"). The Asset Liability The Committee reviewed/ recommended and approved Update on information system audit report P
Committee reviews risk management policies related the matters during FY2023 as per the Terms of
IT Strategy P
to liquidity, interest rates and investment policies. reference, prescribed statutorily and by the Board.
Risk and Compliances pertaining to IT P
The Committee inter alia, oversees the Company’s The key activities of the Asset Liability Committee are
short, medium and long-term funding and liquidity briefed as under: Review of IT outsourcing activities P
Recommended to the Board the amendment to the Cyber Crisis Management Plan, etc. E
Key Activities of the Asset Liability Committee
P-Periodically; E-Event based
Key Matters reviewed/ recommended/ approved by the Committee during FY2023 Frequency
Digital and AI Committee (“DAIC”), a voluntary good governance initiative
Reviewed the report of the Asset Liability Management Committee (comprising cash management, liquidity Q
planning, treasury chest policy, stress testing, contingency plan, forex exposure, interest rate risk etc.) The Board at its meeting held on 28th October 2021 had constituted the Digital and AI Committee consisting
of the following members. The Committee was constituted voluntarily, as a good governance initiative.
Reviewed the fund raising plan for FY2024 P
Reviewed the Liquidity Risk Management Policy, Procedure and Framework Q
Meetings of DAIC
Noted the report with regards to review of Liquidity Risk Management Framework by an external independent E
management consulting firm During FY2023, the Committee met four times i.e. on 9 th June 2022, 29 th August 2022, 16th November 2022
and 23rd February 2023. All the Meetings were well attended.
Recommended the amendment to the Liquidity Risk Management Policy and Procedures, Treasury Chest Policy, E
Liquidity and Investment Policy, etc.
DAIC composition as at 31st March 2023 and attendance at the meetings held during FY2023
Q- Quarterly; E- Event based; P- Periodically; A - Annually
Attendance and
IT Strategy Committee (“ITSC”) specifying the IT framework to be adopted for the Digital and AI Committee Members Category
meetings
% Attendance

The Board of Directors at its Meeting held on 24th NBFC sector.

Dr. Rebecca Nugent ID 4 out of 4 100%
July 2017, had constituted the IT Strategy Committee Mr. Milind Sarwate ID 4 out of 4 100%
in compliance with the provisions of Clause 1.1 of Meetings of ITSC
Mr. Ramesh Iyer ED 4 out of 4 100%
Section-A on IT Governance of the Master Direction During the FY2023, the Committee met four times i.e.
No. DNBS.PPD. No.04/ 66.15.001/2016-17 dated on 9 th June 2022, 29 th August 2022, 16th November Mr. Amit Raje* ED upto 28th July 2022 2 out of 3 66.67%
8th June 2017, issued by the Reserve Bank of India, 2022 and 23rd February 2023. All the Meetings were Mr. Amit Kumar Sinha NED 4 out of 4 100%
well attended. Mr. Dinesh Gangwani Chief Information Officer 4 out of 4 100%
Mr. Mohit Kapoor EVP & Group CTO 4 out of 4 100%
ITSC composition as at 31st March 2023 and attendance at the meetings held during FY2023 Mr. Raul Rebello Chief Operating Officer, 4 out of 4 100%
MD & CEO -Designate
Member since Attendance and
IT Strategy Committee Members Category % Attendance Mr. Vineet Shukla VP – Data Sciences 4 out of 4 100%
(dd.mm.yyyy) Meetings
Mr. Milind Sarwate (Chairperson) ID 23.09.2019 4 out of 4 100% Mr. Mohit Kapoor and Mr. Vineet Shukla does not hold any shares in the Company as on 31 st March 2023.
Mr. C. B. Bhave ID 24.07.2017 3 out of 4 75%
Mr. Ramesh Iyer ED 24.07.2017 4 out of 4 100% Mr. Amit Raje was granted Leave of Absence (“LOA”) Terms of Reference of DAIC
from attending Digital and AI Committee meeting The Committee was constituted to advise the
Dr. Rebecca Nugent ID 28.10.2021 4 out of 4 100%
held on 9 th June 2022. Further, he ceased to be the management on Digital and AI strategy and roadmap,
Mr. Amit Kumar Sinha NED 28.10.2021 4 out of 4 100%
member of the Committee w.e.f. 30 th November 2022. horizon scanning on AI trends, helping develop
Mr. Dinesh Gangwani Chief Information Officer 28.10.2021 4 out of 4 100%
Note – Mr. Dinesh Gangwani holds 500 (0.00%) shares in the Company as on 31 st March 2023.

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start-up and innovation ecosystem, guiding the The key activities of the DAIC during FY2023 Directors are interested nor made any loans and strengthened its systems and control processes to
management on ethical use of AI, preventing misuse The Committee reviewed/ recommended and approved advances in the nature of loans to its subsidiaries and ensure regulatory compliances.
of AI and ensuring data privacy for the customers and the matters during FY2023 as per the Terms of associates during FY2023. Disclosure on the same is
The Company has during the year, in compliance with
employees, helping develop roadmap for data assets reference, prescribed by the Board. The key activities given in note no. 51(IV) of the Standalone Financial
the RBI Circular dated 11th April 2022, put in place the
which can be monetised later, defining high standards of the DAIC are briefed as under: Statements of the Company for the year ended
Compliance Policy duly approved by Board. Further, the
for customer centricity CX, defining data and AI 31 st March 2023. The Company has not availed any
Company has strengthened its Compliance team and
governance framework. loans from M&M, its Holding Company and Promoter,
processes to ensure effective tracking and monitoring
during FY2023.
of regulatory compliances.
Key Activities of the Digital and AI Committee
Disclosure on transactions with M&M as applicable,
Key Matters reviewed by the Committee during FY2023 Frequency are given in note no. 51(ii) of the Standalone Financial Compliance with the provisions of the Act and
Statements of the Company for the year ended 31 st Secretarial Standards
Data and AI capabilities and roadmap P
March 2023. During the financial year ended 31 st March 2023, the
Data capabilities for growth P
Company has complied with the requirements of the
Data Analytics P Disclosure of Accounting Treatment in Preparation Act, including Secretarial Standards i.e. SS-1 and SS-2,
P- Periodically of Financial Statements relating to ‘Meetings of the Board of Directors’ and
The Financial Statements of the Company have been ‘General Meetings’, respectively, issued by Institute of
SUBSIDIARY COMPANIES Regulations for the purpose of appointment of
prepared in accordance with the Indian Accounting Company Secretaries of India.
Mahindra Rural Housing Finance Limited (“MRHFL”), a Independent Director of the Holding Company on
Standards (‘Ind AS’) as per the Companies (Indian
Debt listed subsidiary, is a material subsidiary of the its Board.
Accounting Standards) Rules, 2015 as amended Internal Ombudsman
Company as per the criteria specified in Regulation 16 The Company has complied with the provisions and notified under Section 133 of the Act, and in In compliance with the RBI Circular dated 15th
of the Listing Regulations. of Regulation 24 of the Listing Regulations with conformity with the accounting principles generally November 2021, the Company had appointed an
However, MRHFL is not considered as a material regards to Corporate Governance requirements for accepted in India and other relevant provisions of Internal Ombudsman (“IO”). A Report of number of
subsidiary under Regulation 24 of the Listing subsidiary companies. the Act. Further, the Company has complied with all complaints escalated to IO and status of disposal of
the directions related to Implementation of Indian such complaints during the period under review was
Disclosure requirements pertaining to material unlisted subsidiary companies prescribed under Schedule V of Accounting Standards prescribed for Non-Banking placed before the Board for its review in compliance
the Listing Regulations, are as follows: Financial Companies (NBFCs) in accordance with the with the aforesaid RBI circular.
RBI notification no. RBI/2019- 20/170 DOR (NBFC).
Date of CC.PD.No.109/22.10.106/2019-20 dated 13th
Name of material Date of Place of appointment Code for Prevention of Insider Trading Practices
subsidiary incorporation incorporation
Name of statutory auditor
of statutory March 2020. Any application guidance/ clarifications/
The Company has, in compliance with the Securities
auditor directions/ expectations issued by RBI or other
and Exchange Board of India (Prohibition of Insider
Mahindra Rural Housing Finance 9th April 2007 Mumbai M/s. Gokhale & Sathe, Chartered 1st November regulators are implemented as and when they are
Trading) Regulations, 2015 (“the PIT Regulations”)
Limited Accountants 2021 issued/applicable.
formulated and adopted:
Accounting policies have been consistently applied,
DISCLOSURES In addition to the above, as per the Listing Regulations, The ‘Code of Practices and Procedures for
for the preparation of Financial Statements, except
your Company has also submitted disclosures of Fair Disclosure of Unpublished Price Sensitive
Policy for determining Material Subsidiaries where a newly issued accounting standard is initially
Related Party Transactions to the Stock Exchanges Information’ to ensure prompt, timely and adequate
Your Company has formulated a Policy for determining adopted or a revision to an existing accounting
in the prescribed format and also published it on the disclosure of Unpublished Price Sensitive Information
‘Material’ Subsidiaries as defined in Regulation 16 of standard requires a change in the accounting policy
website of the Company. (“UPSI”). The Fair Disclosure Code inter alia, includes
the Listing Regulations. The Policy has been hosted hitherto in use.
the Policy for Determination of “Legitimate Purpose”.
on the website of the Company and can be accessed With respect to the annual audited financial statements
Policy on Materiality of and Dealing with Related The ‘Code of Conduct for Prevention of Insider
through the web-link: https://www.mahindrafinance. for the year ended 31 st March 2023, the Company is
Party Transactions Trading in Securities of Mahindra & Mahindra
com//investors/disclosures-reg-46- 62/corporate- in compliance with the requirements of the applicable
governance#MMFSL-policies. The Company has formulated a policy on materiality Financial Services Limited’ (“Code”) was formulated
Accounting Standards.
of and dealing with Related Party Transactions to regulate, monitor and ensure reporting of Trading
Disclosure of Transactions with Related Parties (“RPTs”) pursuant to the provisions of the Act and by Designated Persons and their immediate relatives
Non-compliances, Penalties and Strictures
Regulation 23 of the Listing Regulations, which guides designated on the basis of their functional role in
All transactions entered into with Related Parties No penalties/strictures have been imposed on the
on RPTs including the approval matrix to be followed, the Company towards achieving compliance with
as defined under the Act and Listing Regulations Company by the Stock Exchanges or Securities and
materiality threshold, and the manner of entering into the Regulations and is designed to maintain the
during the financial year were in the ordinary course Exchange Board of India or any other statutory
Related Party Transactions. highest ethical standards of trading in Securities of
of business and at an arm’s length basis. The details authority on any matter relating to capital markets, the Company by persons to whom it is applicable.
of the transactions entered with related parties are The said Policy has been hosted on the website of during the last three years. The provisions of the Code are designed to prohibit
placed before the Audit Committee for their review on the Company in accordance with the provisions of
BSE had levied a fine of ₹ 1,65,200 (including GST) identified Designated Persons from trading in the
quarterly basis. the Listing Regulations and RBI Master Direction
under Regulation 60(2) of the Listing Regulations, Company’s Securities when in possession of UPSI.
- Non-Banking Financial Company - Systemically
During FY2023, there were no materially significant with respect to delay in submission by 1 (one day) of The Code lays down guidelines for procedures to be
Important Non-Deposit taking Company and Deposit
transactions or arrangements entered into between the intimation of record date for few ISINs during the followed and disclosures to be made while dealing
taking Company (Reserve Bank) Directions, 2016, as
the Company and its Promoters, Directors or their month of March 2022. The Company had made an with Securities of the Company and cautions them of
amended and can be accessed at the web-link: https://
Relatives or the Management, Subsidiaries, etc., application for condonation of delay and waiver of fine. the consequences of violations.
www.mahindrafinance.com//investors/disclosures-
that may have potential conflict with the interests The Company has paid the fine on 13th January 2023.
reg-46-62/corporate-governance#MMFSL-policies. Policy and procedure for inquiry in case of leak
of the Company at large. Further, details of related
The Reserve Bank of India had imposed penalty/ / suspected leak of Unpublished Price Sensitive
party transactions are presented in note no. 51 to
Particulars of loans/ advances etc. pursuant to para strictures as stated in note no. 53 (VII)(b) of the Information: The Company has formulated the ‘Policy
Standalone Financial Statements of the Company for
A of Schedule V of Listing Regulations Standalone Financial Statements of the Company for and Procedure for inquiry in case of leak/suspected
the year ended 31 st March 2023 forming part of the
The Company has not made any loans and advances the year ended 31 st March 2023. The Company has leak of Unpublished Price Sensitive Information’. The
Annual Report.
in the nature of loans to Firms/ Companies in which objective of this Policy is to inter alia, strengthen the

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internal control systems to prevent leak of UPSI, restrict/ (“ASCR”), submitted to the Stock Exchanges. The WHISTLE BLOWER POLICY/ VIGIL MECHANISM • Other subject specific communication sent to the
prohibit communication of UPSI with unauthorised Secretarial Auditor has confirmed the compliance by The Company promotes ethical behaviour in all Shareholders during the year:
person(s) and curb the unethical practices of sharing the Company with the SDD in their ASCR. its business activities and has established a vigil
sensitive information by persons having access to UPSI. mechanism for its Directors, Employees and − Mandatory KYC: The Company has sent requisite
The Policy also provides an investigation procedure in Awareness initiatives on Prevention of Insider Stakeholders associated with the Company to correspondence/reminders to the shareholders,
case of leak/suspected leak of UPSI. Trading report their genuine concerns. The Vigil Mechanism holding shares in physical form, to provide the
The Company has an internal awareness programme as envisaged in the Act and the Rules prescribed KYC documents/ details as required under SEBI
Compliance Officer under SEBI Insider Trading branded as– JAGRUT (enlightened) INSIDERS for thereunder and the Listing Regulations is implemented Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/
Regulations creating awareness amongst the designated persons through the Whistle Blower Policy, to provide for CIR/2021/655 dated 3rd November 2021 read
Mr. Vivek Karve, CFO of the Company, acts as the on the applicability, reporting and other compliances adequate safeguards against victimisation of persons with SEBI Circular No. SEBI/HO/MIRSD/MIRSD_
Compliance Officer under the ‘Code of Conduct for to be adhered to, closure of Trading window, who use such mechanism and make provision for direct RTAMB/P/CIR/ 2021/ 687 dated 14th December
Prevention of Insider Trading in Securities of Mahindra protection of UPSI, maintenance of Structured Digital access to the Chairperson of the Audit Committee. 2021.
& Mahindra Financial Services Limited’. Database, do’s and don’ts, etc. under the Company’s − Registration of email addresses for the
As per the Whistle Blower Policy implemented by
Insider Trading Code, UPSI Leakage Policy and the purpose of receiving Annual Report and e-voting
the Company, any Stakeholders associated with
Insider Trading e-Compliance Module PIT Regulations. at the AGM:
the Company are free to report illegal or unethical
With a view to automate and facilitate the compliances The Company also has a dedicated e-mail ID that behaviour, actual or suspected fraud or violation
under the PIT Regulations and the Company’s can be reached by the Designated Persons for FAQs, of the Company’s Codes of Conduct or Corporate • The Company made special arrangements with the
Code, the Company has in place an ‘Insider Trading queries and clarifications on the said Code, Policies and Governance Policies or any improper activity, through assistance of its Registrar & Transfer Agent during
e-Compliance Module, a digital platform (“Portal”) for Regulations. There exists a process to include/ exclude the channels provided below. AGM of 2022 for registration of e-mail addresses of
ensuring compliances including provision for reporting Designated Persons under the Code. Guidance is given those Members whose email ids were not registered
of trades, seeking pre-clearances and entering data The Whistle Blower Policy provides for protected to enable them to receive the Notice of AGM
to designated persons on requisite compliances.
on sharing of UPSI. Frequent reminders are sent disclosure and protection to the Whistle Blower. Under along with the Annual Report including e-voting
informing about window closures through the Portal. the Whistle Blower Policy, the confidentiality of those credentials electronically.
Online Training Module, with audio feature, rolled
reporting violation(s) is protected and they are not
All designated persons of the Company have out in FY2023 • The Company publishes its quarterly, half-
subject to any discriminatory practices. The Whistle-
submitted their annual disclosures as on 31 st March The Company, in order to create awareness amongst yearly and annual results in Business Standard
blower can make a Protected Disclosure by using any
2023 and affirmed compliance with the Company’s the Designated Persons, has developed an online (all India editions) and Sakal (Mumbai edition) which
of the following channels for reporting:
Insider Trading Code and the PIT Regulations in the module, covering various aspects of PIT Regulations, are national and local dailies, respectively. These are
above Portal. Further, initial disclosures in Form A to which is made compulsory for the Designated Persons Independent third party Ethics Helpline Service not sent individually to the Shareholders.
be submitted on becoming a designated person of the to undergo, followed by assessment, to test the level Portal: https://ethics.mahindra.com • The Annual Report of the Company, the quarterly,
Company are also received through the online portal. of knowledge. Toll free No: 000 800 100 4175 half-yearly and the annual financial results and
of f icial news relea ses are displayed on the
Silent period Physical/ in person awareness / induction sessions Chairperson of the Audit Committee Company ’s website at Mahindra Finance -
As a good governance practice, the Company in FY2023 The Whistle Blower Policy has been widely disseminated Investor Zone
voluntarily observes a ‘Silent / Quiet period’ starting Further, the Company had during the year conducted within the Company. The Policy is available on the • The Company discloses to the Stock Exchanges,
from 1 st day of the start of the month, after the six physical awareness sessions with separate groups website of your Company at the web-link https:// all information required to be disclosed under
end of the quarter, till the time of announcement of of designated persons, briefing them on the regulatory www.mahindrafinance.com//investors/disclosures- Regulation 30 read with Part ‘A’ and Part ‘B’ of
financial results. During this period, no interactions provisions pertaining to Insider Trading and Company’s reg-46-62/corporate-governance#MMFSL-policies. Schedule III of the Listing Regulations including
with investors/ analysts/ funds are held to discuss Code of conduct on the same. Such sessions are material information having a bearing on the
The Audit Committee is apprised on the vigil
unpublished financial performance to ensure also conducted for new employees appointed and performance/operations of the Company and other
mechanism on a periodic basis. During the year, no
protection of Company’s UPSI. considered as Designated Persons, on a periodic basis. price sensitive information. The Company also files
personnel was denied access to the Chairperson of
The Company has also created a WhatsApp group various compliances and other disclosures required
the Audit Committee.
Structured Digital Database for UPSI providing snippets on the PIT Regulations. to be filed electronically on the online portal of
The Company has in place a structured digital database BSE Limited and National Stock Exchange of
These initiatives help reduce the violations under the MEANS OF COMMUNICATION
(“SDD”) wherein details of persons with whom UPSI India Limited respectively, viz. BSE Corporate
said regulations. • The Company, from time to time and as may be
is shared on need-to-know basis and for legitimate Compliance and Listing Centre (Listing Centre)
required, interacts with its shareholders, debenture and NSE Electronic Application Processing System
business purposes is maintained with time stamping and Review of the Insider Trading compliances h o l d e r s a n d f i xe d d e p o s i t h o l d e r s t hr o u g h (NEAPS)/NSE Digital Exchange Portal.
audit trails to ensure non-tampering of the database.
A detailed report comprising details of trading plans multiple channels of communication such as
• The Company conduc t s annual and quar terly
The SDD is maintained internally by the Company and submitted, if any, pre-clearances given by compliance announcement of financial results, postal ballot
Earnings Call to engage with investors and analysts.
is not outsourced in accordance with the provisions of officer, trades carried out and reported to the stock results, annual report, media releases, dissemination
Presentation to Investors and other disclosures
the PIT Regulations. exchanges, trading window closure period, details of information on the website of the Company and
which are required to be disseminated on the
of violations, if any observed, confirmation on Stock Exchanges, newspaper notices, reminders for
The Company, in compliance with various Circulars Company’s website under the Listing Regulations
maintenance of Structured Digital Database, etc. as unclaimed shares, unpaid dividend/unpaid interest
issued by the Stock Exchanges, had during the year have been uploaded on the website of the Company
recommended in guidance note issued by The Institute or redemption amount on debentures, unclaimed
submitted SDD Compliance Certificate on a quarterly and as per the Archival Policy of the Company would
of Company Secretaries of India on the PIT Regulations Fixed Deposits and/or interest due thereon and
basis, in the format as prescribed, confirming be hosted on the website for a minimum period of
is submitted to the Audit Committee and the Board of subject specific communications. The details of
compliance with the provisions pertaining to the SDD. five years from the date of respective disclosures.
the Company for its review on a quarterly basis. unpaid/unclaimed Dividend/Fixed Deposits and
Further, pursuant to Circular dated 25th January • The Company has designated investorhelpline_
interest thereon are also uploaded on the website
2023 of the Stock Exchanges, the said certificate Violations, if any, are reported to the Audit Committee. mmfsl@mahindra.com as an e-mail ID for the
at the web-link: https://w w w.mahindraf inance.
is no longer required to be submitted to the Stock The Audit Committee on an annual basis also reviews pu r pose of regis ter ing compl a int s/ quer ie s/
com//investors/disclosures-reg-46-62/corporate-
Exchanges from quarter ended 31 st March 2023, and confirms that the systems for internal control requests by investors and displayed the same on
governance#MMFSL.
since the same has to be confirmed by the Secretarial for Insider Trading are adequate and are operating the Company’s website. The Company has also
Auditor in their Annual Secretarial Compliance Report effectively in compliance with the PIT Regulations.

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designated mfinfd@mahindra.com as an exclusive • Members can also provide their feedback on the Voting Results:
email ID for Fixed Deposit Investors for the purpose services provided by the Company and its Registrar
of registering queries/complaints/requests in respect & Transfer Agents by filling the ‘Shareholders Particulars Percentage of Total Votes Polled (in %)
Result
of Fixed Deposits of the Company and the same has Satisfaction Survey’ form available on the website (Appointment of Mr. Diwakar Gupta)
also been displayed on the Company’s website. of the Company at https://www.mahindrafinance. Votes in favour of the resolution 99.998 Passed with requisite majority on
• The Company ’s website is a comprehensive com/survey-form/survey-form. Votes against the resolution
th
0.002 30 December 2022.
reference on the organisation’s management, vision, • KPRISM – Mobile service application by KFin: Total 100
mission, policies, Corporate Governance, corporate • Members are requested to note that KFin has
social responsibilit y, su stainabilit y, investors, launched a mobile application – KPRISM and a Procedure adopted for Postal Ballot: (“KFin”) and were also displayed at the Registered
corporate benefits, products and services, updates website https://kprism.kf intech.com for online Office and the Corporate Office of the Company.
Pursuant to the applicable MCA Circulars, the Postal
and news. ser vice to Members. Members can download The Postal ballot was conducted in due compliance
Ballot Notice dated 25th November 2022 was sent to
• The Investor Zone section of the Company’s t he mobile a ppl ic at ion, re g is ter t hems elve s the Members whose name(s) appeared in the Register with all the statutory provisions under the Act and
website provides various downloadable forms (one time) f or ava il ing hos t of s er vice s viz ., of Members / List of Beneficial Owners as on cut-off Listing Regulations.
such as Nomination Form, Form for updation/ v i e w o f co n s o l i d at e d p o r t f o l i o s e r v i ce d by date i.e. Friday, 25th November 2022 and who had As at the date of this report, there are no resolutions
registering of KYC, Declaration for opting out of KFin, Dividend statu s, request s for change of registered their e-mail addresses with the Company or proposed to be passed through postal ballot.
nomination and Deletion of Name, etc., required to address, change/update Bank Mandate. Through KFin or the Depository Participant(s).
be executed by the shareholders have also been the Mobile application, Members can download
The newspaper advertisement to this effect were MANAGEMENT
provided on the website of the Company. The said Annual Reports, standard forms and keep track
forms can be accessed on the Company’s website of u pcoming Gener al Meeting s a nd dividend published, both in Business Standard newspaper Management Discussion and Analysis
at the web-link: https://w w w.mahindraf inance. disbursements. The mobile application is available (English) having nation-wide circulation and Sakal The Annual Report has a detailed section on
com/investors/disclosures-reg-46- 62/investor- for download from Android Play Store. newspaper (Marathi) having circulation in Mumbai Management Discussion and Analysis.
information edition on 30 th November 2022 in accordance with
the provisions of the Act and Secretarial Standard -2 COMPLIANCE
GENERAL BODY MEETINGS on General Meetings.
The Company has complied with the requirements
Details of last three Annual General Meetings and Special Resolutions passed: The remote e-voting facility was provided by KFin. The of Corporate Governance Report of Paragraphs
remote e-voting period commenced from 9.00 a.m. (2) to (10) mentioned in Schedule V of the Listing
For the
Date of AGM (IST) on Thursday, 1 st December 2022 and concluded Regulations and disclosed necessary information as
(held through Time Special Resolutions passed at 5:00 p.m. (IST) on Friday, 30 th December 2022. specified in Regulations 17 to 27 and clauses (b) to
Financial Year
VC/ OAVM)
(i) of Regulation 46(2) and paragraphs C, D and E of
2019-2020 10th August 3.00 p.m. (IST) Increase in borrowing limits from ₹ 80,000 crores to ₹ 90,000 crores under The Scrutiniser submitted his report on postal ballot
Schedule V of the Listing Regulations, in this Report.
2020 Section 180(1)(c) of the Companies Act, 2013 ("the Act") and creation of by remote e-voting process addressed to the Chairman
charge on the assets of the Company under Section 180(1)(a) of the Act. of the Company on 30 th December 2022.
Compliance with Mandatory Requirements
2020-2021 26th July 3.30 p.m. (IST) 1. Re-appointment of Mr. Ramesh Iyer (DIN: 00220759) as Managing
The voting results were submitted to the Stock The Company has complied with all the mandatory
2021 Director of the Company designated as “Vice Chairman & Managing
Director” for a period of 3 years w.e.f. 30th April 2021 to 29th April 2024.
Exchanges where shares of the Company were listed, requirements of the Listing Regulations relating to
on 31 st December 2022, and uploaded on the website Corporate Governance. The status of the same is
2. Appointment of Mr. Amit Raje (DIN: 06809197) as Whole-time
Director of the Company designated as “Chief Operating Officer Digital
of the Company (www.mahindrafinance.com) and as follows:
Finance – Digital Business Unit” for a period of 5 years w.e.f. 1st April 2021
to 31st March 2026.
Compliance status of mandatory Corporate Governance requirements as on 31 st March 2023 with weblink for
policies is given hereunder:
2021-2022 28th July 3.30 p.m. (IST) No special resolutions were passed
2022
Compliance
Regulation No. Corporate Governance requirement
All the Resolutions moved at the last 3 AGMs were passed by the requisite majority of Members. Status
16(1)(b) & Criteria of Independence Yes
Extraordinary General Meetings 25(6)
No Extraordinary General Meeting was held during the Financial Year under review. 17 Board of Directors Yes
17A Maximum number of Directorships Yes
POSTAL BALLOT 18 Audit Committee Yes
During FY2023, the Company had passed the following Resolution through Postal Ballot: 19 Nomination and Remuneration committee Yes
20 Stakeholders’ Relationship Committee Yes
Ordinary/ 21 Risk Management Committee Yes
Sr.
Description Special
No. 22 Vigil Mechanism Yes
Resolution
1. Appointment of Mr. Diwakar Gupta (DIN: 01274552) as an Independent Director of the Company, Special 23 Related Party Transactions Yes, as applicable
for first term of five consecutive years commencing from 1st January 2023 to 31st December 2027 Resolution 24 Corporate Governance requirements with respect to subsidiary of the listed entity Yes, as applicable
(both days inclusive). 25 Obligations with respect to Independent Directors Yes, as applicable
26 Obligations of employees, senior management, KMP, Directors and Promoters Yes
Scrutiniser details
27 Other Corporate Governance requirements Yes
Dr. C. V. Madhusudhanan (ICSI Membership No. FCS 5367) or failing him, Mr. V. R. Sankaranarayan (ICSI
Membership No. FCS 11684), Partners, M/s. KSR & Co. Company Secretaries LLP, were appointed as Scrutiniser
to conduct and scrutinise the postal ballot process and votes cast (through remote e-voting only) in a fair and
transparent manner.

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Compliance Compliance with Non-Mandatory Requirements OTHER DISCLOSURES

Regulation No. Details on Company’s Website Weblink of Company’s Website
status
The Company has adopted the following non- Disclosure in relation to recommendations made by
46(2)(a) Details of Business Yes https://www.mahindrafinance.com/discover- mandatory requirements: the Committees of the Board
mahindra-finance/about-us
During the year under review, there were no
46(2)(b) Terms and conditions of appointment Yes https://www.mahindrafinance.com/ Unmodified Audit Opinion recommendations made by any Committee of the
of Independent Directors investors/disclosures-reg-46-62/corporate-
governance#MMFSL-policies There was no audit qualification in Company’s Board that were mandatorily required and not
standalone or consolidated financial statements for accepted by the Board.
46(2)(c) Composition of various Committees of Yes https://www.mahindrafinance.com/discover-
Board of Directors mahindra-finance/management FY2023. Your Company continues to adopt best
practices to ensure a regime of financial statements Details of utilisation of funds raised through
46(2)(d) Code of conduct of Board of Directors Yes https://www.mahindrafinance.com/
and senior management personnel investors/disclosures-reg-46-62/corporate-
with unmodified audit opinion. Preferential Allotment or Qualified Institutions
governance#MMFSL-policies Placement
46(2)(e) Details of establishment of Vigil Yes https://www.mahindrafinance.com/
Separate Posts of Chairman and Managing Director During the year under review, your Company
Mechanism/ Whistle Blower Policy investors/disclosures-reg-46-62/corporate- and CEO has not raised funds through any Preferential
governance#MMFSL-policies As on the date of this report, the Chairman of the Allotment or Qualified Institutions Placement
46(2)(f) Criteria of making payments to Non- Yes https://www.mahindrafinance.com/ Board is a Non-Executive Director and his position is as specified under Regulation 32 (7A) of the
Executive Directors investors/disclosures-reg-46-62/corporate- separate from that of the Vice-Chairman & Managing Listing Regulations.
governance#MMFSL-policies Director. They are not related to each other.
46(2)(g) Policy on dealing with Related Party Yes https://www.mahindrafinance.com/
Transactions investors/disclosures-reg-46-62/corporate- Fees paid to the Statutory Auditors and all entities in the network firm/ entities
governance#MMFSL-policies
The details of fees for all the services paid by the Company and its Subsidiaries on a consolidated basis to
46(2)(h) Policy for determining ‘material’ Yes https://www.mahindrafinance.com/
Statutory Auditors of the Company, and all entities in the network firm/network entity of which the Statutory
subsidiaries investors/disclosures-reg-46-62/corporate-
governance#MMFSL-policies Auditors are a part, are given below:
46(2)(i) Details of familiarisation programmes Yes https://www.mahindrafinance.com/
₹ in crores#
imparted to Independent Directors investors/disclosures-reg-46-62/corporate-
governance#familiarisation-programme Mukund M. Deloitte
Total fees for
Particulars Chitale & Haskins &
46(2)(j) Email address for grievance redressal Yes https://www.mahindrafinance.com/investors/ FY2023
Co.(“MMC”) Sells(“DHS”)
and other relevant details disclosures-reg-46-62/investor-information
Statutory Audit 0.58* 0.85 1.43
46(2)(k) Contact information of the designated Yes https://www.mahindrafinance.com/investors/
Other permissible Services 0.17** 0.15 0.32
officials of the listed entity who are disclosures-reg-46-62/investor-information
responsible for assisting and handling Reimbursement of expenses 0.01 0.03 0.04
investor grievances Total 0.76 1.03 1.79
46(2)(l) Financial Results Yes https://www.mahindrafinance.com/ # The above amounts are inclusive of GST.
investors/disclosures-reg-46-62/financial-
information#quarterly-filings * Includes ₹ 0.08 crores paid by Mahindra Insurance Brokers Limited (“MIBL”), subsidiary of the Company to MMC, towards Statutory
Audit fees for FY2023.
46(2)(m) Shareholding Pattern Yes https://www.mahindrafinance.com/
investors/disclosures-reg-46-62/financial- ** Includes ₹ 0.05 crores paid by MIBL to MMC towards other services during FY2023.
information#quarterly-filings
Disclosure in relation to the Sexual Harassment of The Company has complied with the provisions
46(2)(n) Details of agreements entered into NA -
with the media companies and/or their Women at Workplace (Prevention, Prohibition and relating to the constitution of the Internal Complaints
associates Redressal) Act, 2013 (“POSH Act”) Committee (“ICC”) under the POSH Act to redress
46(2)(o) Schedule of analyst or institutional Yes https://www.mahindrafinance.com/ The Company is an equal opportunity employer and complaints received regarding sexual harassment.
investor meet and presentation made investors/disclosures-reg-46-62/financial- is committed to ensuring that the work environment
by the listed entity to analyst or information#institutional-investors-analyst-meet at all its locations is conducive to fair, safe and To ensure that all the employees are sensitised
institutional investor harmonious relations between employees. It strongly regarding issues of sexual harassment, the Company
46(2)(p) New name and the old name of the NA - believes in upholding the dignity of all its employees, conducts an online Induction Training through the
listed entity irrespective of their gender or seniority. Discrimination learning platform M-Drona (Internal Training App).
46(2)(q) Items in sub-regulation (1) of Yes https://www.mahindrafinance.com/ and harassment of any type are strictly prohibited. The following is a summary of Sexual Harassment
Regulation 47 (Newspaper investors/disclosures-reg-46-62/corporate- complaint(s) received and disposed off during
Publications) governance#newspaper-publication The Company has in place a comprehensive Policy
FY2023, pursuant to the POSH Act and Rules
46(2)(r) Credit Ratings Yes https://www.mahindrafinance.com/investors/ in accordance with the provisions of POSH Act and
framed thereunder:
disclosures-reg-46-62/investor-information#credit- Rules made thereunder.
rating a) 
Number of complaint(s) of Sexual Harassment
All employees (permanent, contractual, temporary
46(2)(s) Separate audited financial statements Yes https://www.mahindrafinance.com/investors received during the year – 1
and trainees) are covered under this Policy. The Policy
of each subsidiary of the listed entity in
respect of a relevant financial year
has been widely communicated internally and is placed b) Number of complaint(s) disposed off during the
on the Company’s intranet portal. The Company year – 1
30 Materiality Policy as per Regulation 30 Yes https://www.mahindrafinance.com/
ensures that no employee is disadvantaged by way of
investors/disclosures-reg-46-62/corporate- Number of cases pending as at 31 st March
c) 
governance#MMFSL-policies gender discrimination.
2023– 0
43A Dividend Distribution policy as per Yes https://www.mahindrafinance.com/ The POSH Policy is available on the website of the
Regulation 43A investors/disclosures-reg-46-62/corporate- d) 
Number of workshops/awareness programme
Company and can be accessed at the web-link: https://
governance#MMFSL-policies on the subject carried out during the year under
www.mahindrafinance.com//investors/disclosures-
review were as under:
reg-46-62/corporate-governance#MMFSL-policies.

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Management Report on Standalone  onsolidated
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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

• Awareness program was conducted in which Dividend Payment Monthly High and Low of Company’s Shares for the FY2023 at BSE and NSE
mailers & video on the Prevention of Sexual A dividend of ₹ 6.00 per Equity Share (300%) on the
Harassment at the workplace along with POSH National Stock Exchange of India
face value of ₹ 2 each, would be paid after 28th July BSE Limited
Limited
policies was circulated to all employees. POSH 2023, subject to approval by Shareholders at the Month
training was provided to all new joinees as a High Low High Low
ensuing AGM. (₹) (₹) (₹) (₹)
part of induction module.
April 2022 191.00 158.25 191.10 158.55
• An online e-learning module for employees on Registered Office
May 2022 190.50 160.60 190.55 160.60
Prevention of Sexual Harassment covering the Gateway Building, Apollo Bunder, Mumbai - 400 001.
topics on Sexual Harassment, process of filing June 2022 189.95 164.10 190.00 164.00
complaints, dealing with sexual harassment, July 2022 212.70 171.05 212.50 171.05
Listing Details
etc. is developed for training all the employees. August 2022 207.65 185.00 207.30 185.00
Equity Shares
83% of the employees have completed this September 2022 235.00 176.30 235.10 176.10
training. The Company’s Shares are listed on:
October 2022 218.85 178.90 218.90 178.65
• ICC training conducted for all ICC members – 1 November 2022 225.15 191.20 225.25 191.20
The National Stock
session. Name BSE Limited (BSE) Exchange of India Limited December 2022 243.60 215.00 243.40 215.40
• POSH sensitisation training conducted for HR (NSE)
January 2023 247.05 222.00 247.00 222.90
team – 5 sessions. Address Phiroze Jeejeebhoy Exchange Plaza,
February 2023 272.00 225.85 272.00 226.00
Towers, Dalal Street, Plot No. C/1, ‘G’
Mumbai - 400 001. Block, Bandra-Kurla March 2023 260.05 215.70 260.25 215.65
GENERAL SHAREHOLDERS INFORMATION
Complex, Bandra (East),
The Company is registered with the Registrar of Mumbai - 400 051.
Companies, Mumbai, Maharashtra. The Corporate Stock 532720 M&MFIN
Identity Number (CIN) allotted to the Company by the Exchange MMFSL's share performance vs S&P BSE Sensex
MCA is L65921MH1991PLC059642. Codes

price on last trading day of the

MMFSL's share on BSE Closing
300 80000

SENSEX PRICE INDEX

The requisite listing fees for FY2024 have been paid in 75000
33rd ANNUAL GENERAL MEETING 240
full to both the Stock Exchanges. 70000
Day and Date : Friday, 28th July 2023 180 65000

month
Demat ISIN in NSDL and CDSL for : INE774D01024 60000
Time : 3.30 P.M (IST) Equity Shares 120 55000
Mode of AGM : Through Video Conferencing 50000
60
(“VC”)/Other Audio Visual Means Non-Convertible Debentures and Commercial 45000
(“OAVM”) Papers: 0 40000
Deemed Venue of the : Gateway Building, Apollo

Apr 22

May 22

Jun 22

Jul 22

Aug 22

Sep 22

Oct 22

Nov 22

Dec 22

Jan 23

Feb 23

Mar 23
The Non-Convertible Debentures (“NCDs”) of
Meeting Bunder, Mumbai - 400 001
the Company comprise secured, unsecured and
Link to participate through : https://emeetings.kfintech.com subordinated NCDs issued through private placement
video-conferencing MMFSL SENSEX
and public issuances. The NCDs are listed on the Debt
Remote e-voting starts : Sunday, 23rd July 2023 Market Segment of BSE Limited, Phiroze Jeejeebhoy
(9.00 am IST) Towers, Dalal Street, Mumbai - 400 001.
Remote E-voting ends : Thursday, 27th July 2023
The Commercial Papers are listed on the Debt
(5.00 pm IST) MMFSL's share performance vs Nifty 50
Market Segment of NSE, Exchange Plaza, Plot No.

Closing price on last trading day

E-voting at AGM : Friday, 28th July 2023 C/1, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), 300
Mumbai - 400 051.

MMFSL's share on NSE

25000

NIFTY PRICE INDEX

Financial Year of the Company 240
22000
The Company has paid the requisite listing fees for

of the month
The financial year covers the period from 1 st April to FY2024 in full. 180 19000
31 st March. 16000
The Rupee Denominated Medium Term Note 120
programme is listed on the Singapore Exchange 13000
Board Meetings schedule for Financial Reporting 60
Securities Trading Limited. The Company does 10000
• Quarter ending 30 th June 2023 - End of July 2023
not have any outstanding listed securities under 0 7000
• Half-year ending 30 th September 2023 – End of this programme.

Apr 22

May 22

Jun 22

Jul 22

Aug 22

Sep 22

Oct 22

Nov 22

Dec 22

Jan 23

Feb 23

Mar 23
October 2023
• Quar ter ending 31 st December 2023 – End of Debenture Trustee:
January 2024 MMFSL NIFTY
Pursuant to Regulation 53 of the Listing Regulations,
• Year ending 31 st March 2024 - End of April 2024 the name and contact details of the Debenture
Note: The above dates are indicative. Trustee for the privately placed NCDs and public NCDs
are given in the table at the end of this report.
Dates of Book Closure
These details are also available on the website of the
Book Closure for Dividend will be from Saturday, Company at the web-link: https://www.mahindrafinance.
22nd July 2023 to Friday, 28th July 2023, both com/ inve s tor s/disclosu re s- reg- 4 6 - 62/ inve s tor-
days inclusive. information.

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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Distribution of Shareholding Dematerialisation of Shares and Liquidity

Distribution of the shareholding of the Equity Shares of the Company by size and by ownership class as on 31 st As on 31 st March 2023, 99.99 percent of the total equity capital was held in dematerialised form with National
March 2023. Securities Depository Limited and Central Depository Services (India) Limited. The Company’s shares are
frequently traded on BSE and NSE.
Shareholding pattern by ownership as on 31st March 2023
Year As on 31st March 2023 As on 31st March 2022
No. of No. of No. of No. of
% %
Shareholders shares held Shareholders shares held
Dematerialised 1,86,243 1,23,54,11,985 99.99 2,50,648 1,23,52,96,795 99.98
Physical 22 1,17,935 0.01 30 2,33,125 0.02
Promoter - Mahindra & Mahindra Limited 52.16%
Total 1,86,265 1,23,55,29,920 100 2,50,678 1,23,55,29,920 100
Foreign Portfolio Investors 14.85%
Mutual Funds 12.58% The Company had during the year taken initiative to reduce the number of physical shareholders, by sending
Indian Public/HUFs/DIR 6.67% communications through post as well as contacting the shareholders in person, for conversion of their physical
Indian Financial Institutions/Banks 7.33% holding in dematerialised form.
Bodies Corporate 0.66%
Disclosures with respect to Demat Suspense Account/Unclaimed Suspense Account
MMFSL ESOP Trust 0.16%
Others 5.59% In accordance with the provisions of Regulation 39 (4) read with Regulation 34 (3) and Part F of Schedule V of
the Listing Regulations, the details in respect of the unclaimed Equity Shares emanating from the Company’s
IPO and lying in the suspense account are as under:

Number of
Equity Shares
Number of
Particulars in Demat
Shareholders
Suspense
Shareholding pattern by size as on 31st March 2023 Account
No. of outstanding shares as on 1st April 2022 12 2,175
Number of Total No. of
No. of Shares held % of Shareholding Less: Number of Shareholders who approached the Company for transfer of shares from NIL NIL
Shareholders Shares held
suspense account and shares transferred to them
1-500 1,70,897 1,39,81,998 1.13
No. of outstanding shares in the suspense account lying as on 31st March 2023 12 2175
501-1000 8,189 61,40,715 0.50
1001-5000 5,755 1,17,29,125 0.95 The voting rights on the unclaimed shares shall remain frozen till the rightful owner of such shares claims
the shares.
5001-10000 619 43,78,389 0.35
10001-20000 263 37,24,826 0.30
Unclaimed Equity Shares in Rights Allotment Demat Fund (Accounting, Audit, Transfer and Refund) Rules,
20001 and above 542 1,19,55,74,867 96.77 Suspense Account 2016 (“IEPF Rules”) dividends which remain unpaid or
Total 1,86,265 1,23,55,29,920 100.00 unclaimed for a period of seven years from the date
The details of Unclaimed Equity Shares emanating
from Company’s Right Issue and lying in the Rights of transfer to the Unpaid Dividend Account shall be
Shareholding (other than promoter and promoter group) holding, PAN clubbed, more than 1% as on Allotment Demat Suspense Account of the Company transferred by the company to the Investor Education
31st March 2023: is given below: and Protection Fund (“IEPF”).
The IEPF Rules mandate companies to transfer all
Life insurance Corporation of India, LIC-P & GS Fund 7.33% No. of No. of shares in respect of which dividend has not been paid
Year
shareholders Equity Shares
2.64% or claimed for seven consecutive years or more in the
HDFC Life insurance Company Limited, Solvency A/c No. of outstanding shares 5 157 name of IEPF. The Members whose dividend/shares are
2.18% as on 31st March 2023*
HDFC Mutual Fund transferred to the IEPF can claim their shares/dividend
Axis Mutual Fund 1.78% *During the year, there was no shareholder who approached the from the IEPF Authority following the procedure
Company for transfer of shares from the suspense account. prescribed in the Rules.
SBI Mutual Fund 1.72%
Unclaimed Dividend and Shares transferred to In accordance with the said IEPF Rules and its
Kotak Mutual Fund 1.46% amendments, the Company had sent notices/reminders
Investor Education and Protection Fund Authority
Nippon Life India Trustee Fund 1.42% (“IEPF”) to all the Shareholders whose shares were due for
transfer to the IEPF Authority and simultaneously
Ashish Dhawan 1.18% In accordance with the provisions of Sections 124 and
published newspaper advertisement and, thereafter,
125 of the Act and Investor Education and Protection
TATA AIA Life Insurance Company Limited 1.09% transferred the shares to the IEPF during FY2023.

ICICI Prudential Mutual Fund 1.07% Details of Dividend remitted to IEPF during the year:

Financial Year Date of dividend declaration Amount transferred to IEPF (₹) Date of transfer to IEPF
Pledge of Equity Shares 2014-15 24th July 2015 7,19,604 13th September 2022
No pledge has been created over the equity shares held by the Promoter of the Company as on 31 st March
2023. Pursuant to Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition
of Shares and Takeovers) Regulations, 2011, M&M, Promoter of the Company has submitted a declaration
to the Audit Committee of the Company that they have not made any encumbrance, directly or indirectly,
during FY2023 in respect of the shares held by them in the Company. The said declaration was noted by the
Audit Committee.

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Management Report on Standalone  onsolidated
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Analysis Governance Statements Statements
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Details of Shares transferred/ credited to IEPF Members are requested to claim the unclaimed amounts on matured debentures and interest accrued
During FY2023, the Company transferred 13,578 Equity Shares to IEPF Authority corresponding to unclaimed on such debentures, to be transferred to IEPF
dividend for the year 2014-15. The IEPF Authority holds 84,165 Equity Shares in the Company as on 31 st The Company had sent notices/reminders to the Debenture holders/ applicants of Debentures whose principle
March 2023. amount towards debentures/ interest accrued on debentures/ application amount, are due for transfer to the
IEPF Authority.
Pursuant to IEPF Rules, the details of Equity Shares transferred to and released from IEPF Authority are given
as follows: Pursuant to amendment of the Finance Act, 2023, TDS is applicable under Section 193 of the Income-tax
Act, 1961 w.e.f. 1 st April 2023 on Interest paid on Securities which are listed and in dematerialised form.
Number Hence, Debenture holders are required to provide to the Company the relevant information and declarations, to
of shares determine TDS rates applicable to different categories of debenture holders. Debenture holders are requested
Particulars
transferred to
IEPF to submit the necessary documents 15 days prior to the payment becoming due.
Total number of shares held by IEPF as on 31st March 2018 65,442
Outstanding GDRs/ADRs/ Warrants or any Convertible Instruments, Conversion Date and likely impact
Transferred to IEPF during the FY2019 3,310 on equity
Less : Claimed by the Shareholder(s) during FY2019 175
As on 31 st March 2023, the Company did not have any outstanding GDRs/ ADRs/ Warrants or any
Total number of shares held by IEPF as on 31st March 2019 68,577 Convertible Instruments.
Transferred to IEPF during FY2020 1,480
Less : Claimed by the Shareholder(s) during FY2020 2,500 Commodity Price Risk or Foreign Exchange Risk and Hedging activities
Total number of shares held by IEPF as on 31st March 2020 67,557 Your Company does not deal in any commodity and hence is not directly exposed to any commodity price risk.
Transferred to IEPF during FY2021 1,212
Accordingly, the disclosure pursuant to SEBI Circular No. SEBI/HO/CFD/ CMD1/CIR/P/2018/0000000141
Less : Claimed by the Shareholder(s) during FY2021 0 dated 15th November 2018 is not required to be furnished by the Company.
Total number of shares held by IEPF as on 31st March 2021 68,769
As per the Company’s Derivative Risk Management Policy, your Company enters into derivative transactions to
Transferred to IEPF during FY2022 8,613
hedge its exposure to foreign exchange risk and interest rate risk on account of foreign currency loans. These
Less : Claimed by the Shareholder(s) during FY2022 0
transactions are structured in such a way that the Company’s foreign currency liability is crystallised at a pre-
Total number of shares held by IEPF as on 31st March 2022 77,382 determined rate of exchange on the date of taking the derivative transaction. Your Company has hedged all its
Transferred to IEPF during FY2023 13,578 foreign currency borrowings for its full tenure and is in compliance with applicable RBI guidelines in this regard.
Less : Claimed by the Shareholder(s) during FY2023 6,795
Your Company follows the Accounting Policy and Disclosure Norms for derivative transactions as prescribed
Total number of shares held by IEPF as on 31st March 2023 84,165 by the relevant Regulatory Authorities and Accounting Standards from time to time. The accounting policy and
The voting rights on these shares shall remain frozen until the rightful owner claims the shares. required details of foreign exchange exposures as on 31 st March 2023 are disclosed in Note Number 49 to the
Standalone Financial Statements in the Annual Report.
The Company has appointed the Company Secretary as the Nodal Officer under the provisions of IEPF, the
details of which are available on the website of the Company at the web-link: https://www.mahindrafinance. Credit Rating
com//investors/disclosures-reg-46-62/corporate-governance#MMFSL .
The Credit Rating details of the Company as on 31 st March 2023 are provided below:
Further, the Company has also appointed Deputy Nodal Officer to assist the Nodal Officer to inter alia verify
the claim(s) and co-ordinate with the IEPF Authority, the details of which are available on the website of Rating Agency Type of Instrument Rating* Remarks
the Company at the web-link: https://www.mahindrafinance.com//investors/disclosures-reg-46-62/corporate- CRISIL Ratings Fixed Deposit Programme CRISIL AAA/Stable The ‘AAA’ ratings denote the highest degree of safety
governance#MMFSL Limited regarding timely servicing of financial obligations. Such
instruments carry lowest credit risk
The Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on
Commercial Paper CRISIL A1+ The 'A1+' rating indicates a very strong degree of safety
31 st March 2023 on the Company’s website at the web-link: https://www.mahindrafinance.com//investors/
Programme and Short- regarding timely payment of financial obligations. Such
disclosures-reg-46-62/corporate-governance#MMFSL and on the website of the Ministry of Corporate Affairs Term Bank Facilities instruments carry lowest credit risk.
at www.iepf.gov.in.
Long-term Debt CRISIL AAA/Stable The ‘AAA’ ratings denote the highest degree of safety
instruments, Subordinate regarding timely servicing of financial obligations. Such
Details of unclaimed dividend on equity shares to be transferred to IEPF Debt Programme and instruments carry lowest credit risk
The following table provides dates on which unclaimed dividend and their corresponding shares would become Long Term Bank Facilities
liable to be transferred to the IEPF: India Ratings & Commercial Paper IND A1+ The 'A1+' rating is the highest level of rating. Instruments
Research Private Programme and Short- with this rating are considered to have very strong degree
Amount of Limited Term Bank Facilities of safety regarding timely payment of financial obligations.
Date of Such instruments carry lowest credit risk.
unclaimed
Year declaration of Proposed period for transfer of unclaimed dividend to IEPF
dividend (₹) (As on Long Term Debt IND AAA/Stable The ‘AAA’ ratings denote the highest degree of safety
dividend
31st March 2023) instruments, Subordinated regarding timely servicing of financial obligations. Such
2015-16 22nd July 2016 22nd August 2023 to 20th September 2023 8,01,220.00 Debt Programme and instruments carry lowest credit risk.
2016-17 24th July 2017 24th August 2024 to 22nd September 2024 6,81,499.20 Long-Term Bank Facilities
2017-18 27th July 2018 27th August 2025 to 25th September2025 15,19,736.00 PP-MLD IND PP-MLD AAA / “PP-MLD” refers to Principal Protected Market Linked
Stable Debentures. The rating of MLDs is an ordinal assessment
2018-19 23rd July 2019 23rd August 2026 to 21st September 2026 15,13,843.50 of the underlying credit risk of the instrument and does
2019-20 No Dividend was declared. not factor in the market risk that investors in such
2020-21 26th July 2021 26th August 2028 to 24th September 2028 5,21,777.20 instruments will assume.
2021-22 28th July 2022 28th August 2029 to 26th September 2029 9,35,304.60 The ‘AAA’ ratings denote the highest degree of safety
regarding timely servicing of financial obligations. Such
instruments carry lowest credit risk.
Fixed Deposits IND AAA /Stable The ‘AAA’ ratings denote the highest degree of safety
regarding timely servicing of financial obligations. Such
instruments carry lowest credit risk.

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Rating Agency Type of Instrument Rating* Remarks Further, as required by the Circular dated 10 th April transmission, dematerialisation of shares, payment
CARE Ratings Long Term Debt CARE AAA/Stable The ‘AAA’ ratings denote the highest degree of safety 2023 issued by the Stock Exchanges, the Secretarial of dividend, change of address, change in bank details
Limited instruments and regarding timely servicing of financial obligations. Such Auditor has additionally confirmed that Company is and any other query relating to the Equity Shares of
Subordinate Debt instruments carry lowest credit risk. compliant with the following statutory provisions the Company.
Programme for FY2023 as applicable.
Shareholders would have to correspond with the
Brickwork Long Term Subordinated BWR AAA/Stable The ‘AAA’ ratings denote the highest degree of safety
1. Compliance with the Secretarial Standards respective Depository Participants for shares held in
Ratings India Debt Programme regarding timely servicing of financial obligations. Such
Private Limited instruments carry lowest credit risk dematerialised mode.
2. Adoption and timely updation of Policies
* During FY2023, India Ratings & Research Private Limited assigned IND/AAA Stable rating to the Company’s Fixed Deposits; CRISIL 3. Maintenance and disclosures on Website Non-Convertible Debentures
upgraded the Company’s Long Term Rating from “CRISIL AA+/Stable” to “CRISIL AAA/Stable” and also assigned “CRISIL AAA/Stable”
ratings to its Fixed Deposit Programme and Non-Convertible Debentures. Further, the other ratings were re-affirmed by the Rating 4. 
None of the Director of the Company are KFin Technologies Limited also acts as Registrar and
Agencies. With the above rating affirmations, your Company continues to enjoy the highest level of rating from all major rating disqualified under Section 164 of Companies Transfer Agents for the Non-Convertible Debentures
agencies at the same time. of the Company. Complaints or queries/ requests
Act, 2013
relating to Public Issuances of Debentures as well as
The details of Credit Rating are available on the Secretarial Audit Report and Reconciliation of Share 5. Examination of details related to Subsidiaries of the Company’s Privately Placed Debentures can be
website at Capital Audit listed entities forwarded to KFin.
h t t p s : // w w w. m a h i n d r a f i n a n c e . c o m / i n v e s t o r s / As a voluntary good governance practice,
6. Preservation of Documents Debenture holders would have to correspond with the
disclosures-reg-46-62/investor-information#credit- M/s. Makarand M. Joshi & Co., Company Secretaries,
rating had conducted Secretarial Audit on the compliances 7. Performance Evaluation respective Depository Participants for Debentures
by the Company, on a quarterly basis and the report held in dematerialised mode.
8. Related Party Transactions
Locations/Offices has been placed before the Board every quarter.
9. Disclosure of events or information Investor Services Web-based Query Redressal
The Company has vast reach through 1386 offices Further, M/s. Makarand M. Joshi & Co., Company System
covering 27 states and 7 union territories in India. Secretaries have provided the Secretarial Audit 10. 
Compliance with Regulation 3(5) & 3(6) SEBI
Investors can provide their feedback on the services
In view of the nature of business activities carried Report of the Company for FY2023. The Audit (Prohibition of Insider Trading) Regulations, 2015
provided by the Company and its Registrar and
on by the Company, the Company operates from Report confirms that your Company has complied
Transfer Agent by filling the Shareholder Satisfaction
various offices in India and does not have any with the applicable provisions of the Act and the Address for Correspondence
Survey form available in the Investor Relations Tab on
manufacturing plants. Rules made there under, the Listing Regulations, Equity Shares the website of the Company at the web link: https://
applicable RBI Regulations, Listing Agreements
List of branches with addresses is available on Shareholders may correspond with the Registrar and www.mahindrafinance.com/survey-form/survey-form
with the Stock Exchanges, applicable SEBI
the Company’s website at the web-link: https:// Transfer Agents on all matters relating to transfer,
Regulations and other laws applicable to the
mahindrafinance.com/branch-locator Company. The Secretarial Audit Report forms part
of the Board’s Report.
Share Transfer System Contact details at a glance
Trading in Equity Shares of the Company through The Secretarial Audit Report does not contain any Company's Address for Correspondence KFin Technologies Limited (Registrar and Share
recognised Stock Exchanges is permitted only in qualification, reservation or adverse remark. Mahindra Towers, ‘A Wing’, 4th Floor, Transfer Agents) - Equity Shares/ Debentures
dematerialised form. P. K. Kurne Chowk, Worli, Unit: Mahindra & Mahindra Financial Services Ltd.
Pursuant to Regulation 40(9) of the Listing Mumbai - 400 018. Selenium Building, Tower B, Plot Nos. 31-32, Financial
Pursuant to Regulation 40 of the Listing Regulations Regulations certificates have been issued on a half- Tel.: +91 22 6652 6000 District, Nanakramguda, Gachibowli, Serilingampally Mandal,
with respect to, requests for effecting transmission yearly basis, by a qualified Company Secretary in Fax: +91 22 2497 2741 Hyderabad – 500 032, Telangana, India.
and transposition of securities held in physical form, Practice, certifying due compliance of share transfer Email Id: investorhelpline_mmfsl@mahindra.com Tel.: +91 40 6716 2222/1800 309 4001
the Company will issue a Letter of Confirmation formalities by the Company. Fax: +91 40 2300 1153
Queries/complaints/requests in respect of Fixed Email: einward.ris@kfintech.com
for the said transactions and will give effect to the A qualified Practicing Company Secretary carries out
Deposits Website: www.kfintech.com
transaction once the securities are dematerialised. a quarterly reconciliation of Share Capital Audit, to
Mahindra & Mahindra Financial Services Limited, Also have office at:
Members holding shares in physical form are requested reconcile the total admitted Equity Share capital with
37 & 38 4th Floor ASV Ramana Towers, 24-B, Raja Bahadur Mansion, 6 Ambalal Doshi Marg, Behind
to get their shares dematerialised at the earliest. National Securities Depository Limited (NSDL) and Venkat Narayana Road, BSE, Fort, Mumbai - 400 001.
Members are accordingly requested to get in touch Central Depository Services (India) Limited (CDSL) T Nagar, Chennai-600 017, Tamil Nadu. Tel.: + 91 22 66 23 5454
with any Depository Participant having registration and the total issued and listed Equity Share capital. Contact: Debenture Trustee
with SEBI to open a Demat account and get their The quarterly audit for FY2023 confirms that the Chennai: +91 44 4227 6006
Axis Trustee Services Limited
total issued/paid-up capital is in agreement with the Mumbai: +91 22 6652 3500/ 1800 266 9266
shares dematerialised or alternatively, contact the Corporate Office: The Ruby, 2nd Floor, SW, 29 Senapati Bapat
aggregate of the total number of shares in physical Email Id: mfinfd@mahindra.com
nearest office of KFin to seek guidance about the Marg, Dadar (West), Mumbai - 400 028.
dematerialisation procedure. The Members may also form and the total number of shares in dematerialised Phone : 022 – 6230 0451
form held with NSDL and CDSL. Fax : 022 – 4325 3000
visit the website of the Depositories viz. (i) National
Email : debenturetrustee@axistrustee.co.in
Securities Depository Limited at the web-link: https://
nsdl.co.in/faqs/faq.php or (ii) Central Depository Annual Secretarial Compliance Report Date: 28th April 2023
Services (India) Limited at the web-link: https:// Pursuant to SEBI Circular dated 8th
February 2019,
www.cdslindia.com/Investors/FAQs.html for further as amended, read with regulation 24A of the Listing
understanding about the dematerialisation process. Regulations and Circulars issued by Stock Exchanges
in this regard, the Annual Secretarial Compliance
The Stakeholders Relationship Committee meets
Report for FY2023 issued by M/s. Makarand M. Joshi
as and when required to inter alia, consider other
& Co., Company Secretaries, confirming compliance
requests for transmission of shares/debentures,
with all applicable SEBI Regulations and Circulars/
issue of duplicate share/debenture certificates, and
Guidelines issued thereunder has been filed with the
attend to grievances of the security holders of the
Stock Exchanges.
Company, etc.

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Declaration by the Managing Director under Regulation 34(3) read with schedule V of the Annexure A
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Certificate of Non-Disqualification of Directors
Regulations, 2015
(Pursuant to Regulation 34 (3) and Schedule V Para C clause (10) (i) of SEBI (Listing Obligations and Disclosure
To, Requirements) Regulations, 2015)
The Members of
Mahindra & Mahindra Financial Services Limited To,
The Members
I, Ramesh Iyer, Vice-Chairman & Managing Director of Mahindra & Mahindra Financial Services Limited declare Mahindra and Mahindra Financial Services Limited
that all the Members of the Board of Directors and Senior Management Personnel have affirmed compliance Gateway building, Apollo Bunder,
with the Code of Conduct for the year ended 31 st March 2023. Mumbai - 400001

For Mahindra & Mahindra Financial Services Limited We have examined the relevant disclosures provided by the Directors (as enlisted in Table A) to Mahindra
and Mahindra Financial Services Limited having CIN L65921MH1991PLC059642 and having registered
office at Gateway building, Apollo Bunder, Mumbai - 400001 (hereinafter referred to as ‘the Company’)
Place : Mumbai Ramesh Iyer for the purpose of issuing this Certificate, in accordance with Regulation 34 (3) read with Schedule V Para C
Date : 28th April 2023 Vice-Chairman & Managing Director clause 10 (i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
DIN: 00220759 Regulations, 2015.

In our opinion and to the best of our information, based on (i) Documents available on the website of the Ministry
of Corporate Affairs (MCA) (ii) Verification of Directors Identification Number (DIN) status on the website of
the MCA, and (iii) disclosures provided by the Directors to the Company, we hereby certify that none of the
Practicing Company Secretaries’ Certificate on Compliance with the Corporate Governance Directors on the Board of the Company (as enlisted in Table A) have been debarred or disqualified from being
requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 appointed or continuing as Directors of the Companies by the Securities and Exchange Board of India, Ministry
of Corporate Affairs, Reserve Bank of India or any such other statutory authority as on 31 st March 2023.
To,
The Members,
Table A
Mahindra & Mahindra Financial Services Limited
Gateway Building, Apollo Bunder, Mumbai 400001 Director Date of appointment in Company/
Sr.
Name of the Directors Identification Date of re-appointment
We have examined the compliance of conditions of Corporate Governance by Mahindra & Mahindra Financial No.
Number (dd/mm/yyyy)
Services Limited (“the Company”) for the year ended on March 31, 2023, as stipulated in Regulations 17 to 27
1. Dr. Anish Shah 02719429 18th March 2016
and clauses (b) to (i) and (t) of sub-regulation (2) of Regulation 46 and Para C, D and E of Schedule V of the
2. Mr. Dhananjay Mungale 00007563 24th July 2019
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“SEBI Listing Regulations”). 3. Ms. Rama Bijapurkar 00001835 24th July 2019
4. Mr. Chandrashekhar Bhave 00059856 3rd February 2020
In our opinion and to the best of our information and according to the explanations given to us, we certify that
5. Mr. Amit Kumar Sinha 09127387 23rd April 2021
the Company, to the extent applicable, has complied with the conditions of Corporate Governance as stipulated
in Regulations 17 to 27, clauses (b) to (i) and (t) of sub-regulation (2) of Regulation 46 and Para C, D and E of 6. Mr. Milind Sarwate 00109854 1st April 2019
Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 7. Dr. Rebecca Nugent 09033085 5th March 2021
8. Mr. Ramesh Iyer 00220759 30th April 2001
The compliance of conditions of Corporate Governance is the responsibility of the management. Our
examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring 9. Mr. Diwakar Gupta2 01274552 1st January 2023
the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of 10. Mr. Siddhartha Mohanty3 08058830 1st April 2022
opinion on the financial statements of the Company.
Notes:
We further state that such compliance is neither an assurance as to the future viability of the Company nor of 1. Mr. Amit Raje ceased to be Whole-time Director and Key Managerial Personnel of the Company w.e.f. 28 th July 2022.
the efficiency or effectiveness with which the management has conducted the affairs of the Company.
2. Mr. Diwakar Gupta was appointed as Independent Director w.e.f. 1 st January 2023.
3. Mr. Siddhartha Mohanty was appointed as Non- Executive and Non- Independent Director w.e.f. 1 st April 2022, liable to retire by
For Makarand M. Joshi & Co. rotation.
Company Secretaries
For Makarand M. Joshi & Co.

Makarand M. Joshi
Company Secretaries

Partner
Makarand M. Joshi
FCS: 5533; CP: 3662
Partner
Date: 28th April 2023 PR: 640/2019
FCS: 5533; CP: 3662
Place: Mumbai UDIN: F005533E000218482
Date: 28th April 2023 PR: 640/2019
Place: Mumbai UDIN: F005533E000222222

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Business Responsibility & 17. Markets served by the entity:

a. Number of locations

Sustainability Report Locations Number

National (No. of States) 27
Union Territories 7
SECTION A: GENERAL DISCLOSURES
International (No. of Countries) 2
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity- L65921MH1991PLC059642 b. What is the contribution of exports as a percentage of the total turnover of the entity?
2. Name of the Listed Entity- MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED (MMFSL) Not Applicable
3. Year of incorporation- 1991
c.  brief on types of customers- The Company provides wide range of financing, investment and
A
4. Registered office address- Gateway Building, Apollo Bunder, Mumbai, 400001 India
insurance solutions to Rural and semi urban customers. The company serves customers from
5. Corporate address- Mahindra Towers, 4th Floor, Dr. G. M. Bhosale Marg, Worli, Mumbai 400018 India different sectors intending to purchase vehicles.
6. E-mail- investorhelpline_mmfsl@mahindra.com / FERNANDES.LESTER@mahindra.com
7. Telephone- +91 22 66526000 IV. Employees
8. Website- www.mahindrafinance.com 18. Details as at the end of Financial Year:
9. Financial year for which reporting is being done- FY2023 a. Employees and workers (including differently-abled):
10. Name of the Stock Exchange(s) where shares are listed- BSE Limited, National Stock Exchange of Male Female
S.
India Limited No.
Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
11. Paid-up Capital- 247.10 crore Employees
1. Permanent (D) 26,329 25,354 96% 975 4%
12. Name and contact details (telephone, email address) of the person who may be contacted in case
of any queries on the BRSR report 2. Other than Permanent (E) 1,328 1,266 95% 62 5%
3. Total employees (D+E) 27,657 26,611 96% 1037 4%
Particulars Details Workers
Name Atul Joshi 4. Permanent (F) Not Applicable
Designation Chief HR & Administration 5. Other than Permanent (G)
Contact No. 022 66526029 6. Total workers (F+G)
Email joshi.atul@mahindra.com
In case of any FERNANDES.LESTER@mahindra.com b. Differently-abled Employees and workers:
BRSR query
S. Particulars Male Female
Total (A)
13. Reporting boundary – This reporting boundary covers all the 1386 branches of Mahindra & Mahindra No No. (B) % (B / A) No. (C) % (C / A)
Financial Services Ltd Pan India. Differently abled employees
1. Permanent (D) 106 52 49% 54 51%
II. Products/services
2. Other than Permanent (E) Nil
14. Details of business activities (accounting for 90% of the turnover): 3. Total differently abled 106 52 49% 54 51%
employees (D+E)
S. % of Turnover
Description of Main Activity Description of Business Activity Differently abled workers
No. of the entity
1 Financial and insurance Service Financial and Credit leasing activities 98.8 4. Permanent (F)
2 Financial and insurance Service Other financial activities 1.2 5. Other than Permanent (G) Not Applicable
6. Total workers (F+G)
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
19. Participation/Inclusion/Representation of women
% of total
S.
Product/Service NIC Code Turnover Total (A) No. and percentage of Females
No.
contributed
No. (B) % (B/A)
1 Asset Financing 64990 78.53
Board of Directors 10 2 20%
III. Operations Key Management Personnel 3 1 33%

16. Number of locations where plants and/or operations/offices of the entity are situated:
20. Turnover rate for permanent employees and workers
Location Number of plants Number of offices
FY2023 FY2022 FY2021
National Not Applicable 1,386 offices as on 31st March 2023
Male Female Total Male Female Total Male Female Total
International Not Applicable The Company operates through its Joint Venture (JV) company
Mahindra Finance USA LLC, in United States and through its Permanent 20.08% 18.81% 19.94% 18.85% 16.98% 18.77% 12.26% 11.17% 12.22%
subsidiary company Mahindra Ideal Finance Limited, in Sri Lanka. Employees
Permanent Not Applicable
Workers

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Holding, Subsidiary and Associate Companies (including joint ventures) Grievance Redressal
FY2023 FY2022
Mechanism in Place
21. (a) Names of holding / subsidiary / associate companies / joint ventures Current Financial Year Previous Financial Year
(Yes/No)
Stakeholder
Indicate whether Does the entity indicated group from whom Number of Number of
holding/ % of shares at column A, participate in complaint is Number of complaints complaints
S. Name of the holding/ (If Yes, then provide Number of
Subsidiary/ held by listed the Business Responsibility received complaints pending pending
No. subsidiary/ associate companies/ joint ventures (A) web-link for grievance complaints
Associate/Joint entity initiatives of the listed entity? filed during resolution Remarks resolution Remarks
redress policy) filed during
Venture (Yes/No) the year at close of at close of
the year
the year the year
1 Mahindra and Mahindra limited Holding 52.16 No
Employees and Yes 0 0 - 0 0 -
2 Mahindra Insurance Brokers Limited Subsidiary 80.00 No workers https://www.
3 Mahindra Rural Housing Finance Limited Subsidiary 98.43 No mahindrafinance.com/
4 Mahindra Manulife Investment Management Private Subsidiary 51.00 No media/392520/9-whistle-
Limited blower-policy.pdf
5 Mahindra Manulife Trustee Private Limited Subsidiary 51.00 No human-rights-policy.pdf
6 Mahindra Finance CSR Foundation Subsidiary 100 No (mahindrafinance.com)
7 Mahindra Ideal Finance Limited Subsidiary 58.20 No https://www.
mahindrafinance.com/
8 Mahindra Finance USA LLC Subsidiary 49.00 No media/125150/10-
code-of-conduct-for-
V. CSR Details senior-management-and-
employees.pdf
22. (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013: (Yes/No)- Yes
Customers Yes 16,549 158 - 19,050 179 -
(i) Turnover (in ₹): 11,056.09 crores https://www.
(ii) Net worth (in ₹): 17,088.91 crores mahindrafinance.com/
media/392520/9-whistle-
blower-policy.pdf
V. Transparency and Disclosures Compliances
Mahindra Finance Fair
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines Practice Code
on Responsible Business Conduct: Value Chain Yes 0 0 - 0 0 -
Partners https://www.
Grievance Redressal
FY2023 FY2022 mahindrafinance.com/
Mechanism in Place
Current Financial Year Previous Financial Year media/392520/9-whistle-
(Yes/No)
Stakeholder blower-policy.pdf
group from whom Number of Number of
complaint is Number of complaints complaints https://www.
(If Yes, then provide Number of
received complaints pending pending mahindrafinance.com/
web-link for grievance complaints
filed during resolution Remarks resolution Remarks media/124187/mmfsl-
redress policy) filed during
the year at close of at close of
the year suppliers-coc.pdf
the year the year
Mahindra Finance Fair
Communities Yes 0 0 - 0 0 -
Practice Code
https://www.
Other (please - - - - - - -
mahindrafinance.com/
specify)
media/392520/9-whistle-
blower-policy.pdf
Investors (other Yes 2 0 - 3 0 - 24. Overview of the entity’s material responsible business conduct issues
than shareholders) https://www. Please indicate material responsible business conduct and sustainability issues pertaining to environmental
mahindrafinance.com/ and social matters that present a risk or an opportunity to your business, rationale for identifying the same,
media/392520/9-whistle- approach to adapt or mitigate the risk along-with its financial implications, as per the following format
blower-policy.pdf
Mahindra Finance Fair Indicate Financial implications of the
Practice Code S. Material issue whether risk Rationale for identifying the In case of risk, approach to risk or opportunity (Indicate
No. identified or opportunity risk / opportunity adapt or mitigate positive or negative
Shareholders Yes 3 0 - 8 1 Complaint on (R/O) implications)
https://www. non-receipt
of Dividend 1 Digitisation Opportunity The demand for and The Company has Positive: Cost efficiency
mahindrafinance.com/
was received acceptance of digital consistently invested in Better customer reach
media/392520/9-whistle-
on 30th transactions is increasing technology and built a & service through digital
blower-policy.pdf
March 2022 due to low-cost internet robust digital environment operations Increased
Mahindra Finance Fair data, high Smartphone in the organisation to penetration, reduced
which was
Practice Code penetration and India’s ensure minimum use of health hazard, reduction
satisfactorily
resolved Biometric identity card. paper-based transactions in collection cost and
on 4th April and communications. emissions.
2022

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Indicate Financial implications of the 5. Specific commitments, goals and targets set by the entity with defined timelines, if any.
S. Material issue whether risk Rationale for identifying the In case of risk, approach to risk or opportunity (Indicate
MMFSL has developed a Sustainability Roadmap for FY2023 across ESG parameters. We in the current
No. identified or opportunity risk / opportunity adapt or mitigate positive or negative
(R/O) implications) financial year have also committed and signed up for the UNGC principles. We have committed and in the
2 Credit ratings Risk & We believe that our The company’s conservative Positive-
current financial year submitted our targets to SBTi for validation.
Opportunity strong credit rating capital structures policies Credit ratings have an
improves access to capital ensure that it always impact on operational and
6.  erformance of the entity against the specific commitments, goals and targets along-with reasons
P
at competitive rates, remain adequately financial decisions along in case the same are not met.
eventually helping us to capitalised. This approach our value chain, from MMFSL has developed Sustainability Roadmap for FY2023 across ESG parameters and we ensure
fund the aspirations of rural ensures significant liquidity ensuring investor security
India. chest that can lead to that these are implemented, monitored, and achieved in the planned time frames. Please refer our ESG
to meeting our customers’
absorbing potential risks performance in our Integrated Report.
needs.
without impacting the
credit rating and debt Governance, leadership and oversight
servicing capability.
7. Statement by director responsible for the business responsibility report, highlighting ESG related
3 Employee Opportunity Employees are our brand The company has Positive: We have challenges, targets and achievements
training and ambassadors who carry accordingly placed great implemented several
education forward the Company’s emphasis on employee initiatives and programme Mahindra & Mahindra Financial Services Ltd. endeavors to enable rural prosperity and enhance semi-urban
mission of transforming learning and development, to enhance their skills and living, with a goal to drive positive change in the lives of communities and stakeholders to enable them
rural lives and driving mentoring and knowledge competencies to help them to Rise.
positive change in the sharing through various in their journey of personal
communities. initiatives and structured and professional progress. ESG is the need of the hour for all businesses and we, at Mahindra Finance, are constantly working towards
programmes. safeguarding a better tomorrow for all our stakeholders. We align our performance by evaluating outcomes
4 Climate change Risk & Minimising our The company has taken Positive: Drives better risk from the ESG roadmap developed with the three pillars of Environment, Social and Governance for long-
& Governance Opportunity environmental impact targets on: management and value term value creation.
and building operational Maintaining declining trend creation.
resilience to the effects
We also depend on the engagement and motivation of our workforce to create sustainable and long-term
in CO2 emissions per Negative:
of climate change on growth of the organisation. We strive for inclusive growth with an ambition to create a more equal world.
employee (tons of CO2eq) Impact on Company’s
our business and the per employee
Despite headwinds, we uphold the interests of our investors and shareholders ensuring consistent and
ESG rating and Investors
communities we serve sustainable returns.
Increase the tree plantation Confidence.
with focus on survival rate Having a pan-India presence through remote areas spanning 1300+ branches, we are continuously making
Financing M&M Electric efforts to minimise our environmental impact. Reducing dependency on natural resources, addressing
vehicles climate change and achieving sustainable economic development are all strategically factored in our
business model with a vision to be carbon neutral in the near future. We strive to build operational resilience
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES to the effects of climate change on our business and the communities we serve.
Policy and management processes
8. Details of the highest authority responsible for implementation and oversight of the Business
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the
Responsibility policy (ies).
NGRBCs. (Yes/No)
Mr. Ramesh Iyer (Vice Chairman & Managing Director Mahindra Finance, President Financial Service Sector,
Yes, MMFSL has a Policy covering each principle and its core elements of the NGRBCs
Member of Group Executive Board)
b. Has the policy been approved by the Board? (Yes/No)
9.  oes the entity have a specified Committee of the Board/ Director responsible for decision making
D
Yes on Sustainability related issues? (Yes / No). If yes, provide details.
The Board CSR Committee is responsible for implementation of the Policies. The Committee comprises of
c. Web Link of the Policies, if available
three Directors, out of which two are Independent Directors and one is the Managing Director. The board

BRSR Policy- https://www.mahindrafinance.com/media/393197/brsr-policy-1.pdf reviews the progress of initiatives under the purview of business responsibility and periodically assesses
the ESG performance of the Company.
2. Whether the entity has translated the policy into procedures. (Yes / No)
Yes 10. Details of Review of NGRBCs by the Company:

3. Do the enlisted policies extend to your value chain partners? (Yes/No) Indicate whether review was undertaken by Frequency
Director / Committee of the Board/ (Annually/ Half yearly/ Quarterly/ Any other
Yes Subject for Review Any other Committee – please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
4.  ame of the national and international codes/certifications/labels/ standards (e.g. Forest
N
Performance against Above policies Relevant policies of the Company are reviewed half yearly. The necessary changes to
Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, and follow up action policies and procedures are implemented accordingly.
ISO, BIS) adopted by your entity and mapped to each principle.
Compliance with statutory The Company is in compliance with the applicable statutory requirements. We have
During the formulation of MMFSL policies and processes, the company reviews and includes references of requirements of relevance to the constituted various Board level committees that meets periodically to review and
Acts, Regulations & Guidelines. Our recently released Business Responsibility & Sustainability Reporting principles and rectification of any monitor objectives.
Policy has been formed in adherence to the National Guidelines on Responsible Business Conduct non-compliances
(NGRBC), based on the UN Guiding Principles for Business and Human Rights (UNGPs), UN Sustainable
Development Goals (SDGs), Paris Agreement on Climate Change, Core Conventions of the International
Labour Organisation (ILO) and the Indian Companies’ Act 2013. We are also a signatory to the UNGC
Principles signed by our VC & MD. We also follow the GRI Standards and IIRC framework while reporting on
our ESG performance across parameters included in the Integrated Report.
ISO Certifications: ISO 27001: Information Security.

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11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an 2.  etails of fines /penalties /punishment/ award/ compounding fees/ settlement amount paid in
D
external agency? (Yes/No). If yes, provide name of the agency. proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/
judicial institutions, in the financial year, in the following format (Note: the entity shall make
P1 P2 P3 P4 P5 P6 P7 P8 P9 disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations
Yes. and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website
Our Integrated Annual Report is assured by third party according to AA1000AS standards and based on GRI Reporting
Standards framework and also mapped in accordance to UN SDG’s and National Voluntary Guideline Principles. It is also Monetary
aligned to IIRC framework. Bureau Veritas evaluated the working of policies and procedures according to the GRI standards. Name of the
The policies are reviewed on a periodical basis by the respective departments, and updated accordingly. The updated policies regulatory/ Has an appeal
NGRBC
enforcement Amount (In ₹) Brief of the Case been preferred?
with changes are placed for approval, as applicable. Principle
agencies/ judicial (Yes/No)
institutions
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be Penalty/ Fine NIL
stated: Settlement NIL

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 Compounding fee NIL

The entity does not consider the Principles material to its business (Yes/No) Non-Monetary
Name of the
The entity is not at a stage where it is in a position to formulate and implement
regulatory/ Has an appeal
the policies on specified principles (Yes/No) NGRBC
enforcement Brief of the Case been preferred?
Principle
The entity does not have the financial or/human and technical resources Not Applicable agencies/ judicial (Yes/No)
available for the task (Yes/No) institutions

It is planned to be done in the next financial year (Yes/No) Imprisonment NIL

Any other reason (please specify) Punishment NIL
Note: During FY2023, there were no material actions taken against the Company.
PRINCIPLE 1 For details of orders passed against the Company, please refer Note No. 53. VII (b) of Standalone Financial Statements.
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable. 3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases
Essential Indicators where monetary or non-monetary action has been appealed.
1. Percentage coverage by training and awareness programmes on any of the Principles during the Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
financial year:
N.A N.A
% age of persons in respective
Total number of training and Topics/principles covered under the
Segment category covered by the 4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if
awareness programmes held training and its impact
awareness programmes available, provide a web-link to the policy.
Board of Directors 1 All the BRSR principles are covered 100% Yes- MMFSL practices zero-tolerance approach towards bribery and corruption and is committed to act
through the training programs.
professionally and fairly in all its business dealings, Relationships, Implementation and enforcing effective
- Ethics systems to counter bribery and corruption in any form.
- Employee wellbeing
ABAC Policy- https://www.mahindrafinance.com/media/394859/abac-policy.pdf
- Human Rights
- Environment
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by
- Inclusive growth & Equitable any law enforcement agency for the charges of bribery/ corruption:
Development
- Value for consumers FY2023 FY2022
- Stakeholder Engagement (Current (Previous
Financial Year) Financial Year)
Key Managerial 4 100%
Directors Nil Nil
Personnel
KMPs
Employees other 40 90.56%
than BoD and Employees
KMPs Workers
Workers Not Applicable

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6. Details of complaints with regard to conflict of interest: PRINCIPLE 2

Businesses should provide goods and services in a manner that is sustainable and safe
FY2023 FY2022
(Current Financial Year) (Previous Financial Year) Essential Indicators
Number Remarks Number Remarks 1.  ercentage of R&D and capital expenditure (capex) investments in specific technologies to
P
Number of complaints received in relation to issues of improve the environmental and social impacts of product and processes to total R&D and capex
Conflict of Interest of the Directors investments made by the entity, respectively.
Nil Nil
Number of complaints received in relation to issues of
Conflict of Interest of the KMPs Current Previous
Details of improvements in environmental and social impacts
Financial Year Financial Year
R&D - - -
7.  rovide details of any corrective action taken or underway on issues related to fines / penalties /
P
Capex 40% 61% Procurement of 5 star inverter split AC’s, super efficient BLDC fans for
action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption
reducing energy consumption, replacement of lights with LEDs across all
and conflicts of interest. branch offices and procurement of energy efficient IT assets.
N.A
Given the nature of MMFSL’s business, Capex Investment is largely focused on procurement of Energy
efficient appliances like 5 star Inverter Ac’s, LED’s & BLDC fans and also capex was incurred towards
Leadership Indicators
IT hardware and software to facilitate the enhanced digital initiatives of the company. Greater adoption
1. Awareness programmes conducted for value chain partners on any of the Principles during the of digital platforms not only brings in increased efficiencies of operations but also ensures significant
financial year: reduction in consumption of paper.
% age of persons in respective
Segment
Total number of training and Topics/principles covered under the
category covered by the 2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
awareness programmes held training and its impact
awareness programmes MMFSL provides financial services across India in different verticals. We do not consume any raw
Workers 1 All 9 principles of BRSR were 87% material in our operations. Business activities are limited to providing financial solutions to serve the
covered: needs of the people with a focus on rural and semi urban areas of India. However, MMFSL nurtures a
- Ethics culture of conservation of resources and encourages innovation. The company focuses on operational
- Employee wellbeing excellence by reducing the dependence on natural resource and reducing environmental footprint.
- Human Rights
- Environment b. If yes, what percentage of inputs was sourced sustainably?
- Inclusive growth & Equitable 40% in FY2023
Development
- Value for consumers 3. Describe the processes in place to safely reclaim your products for reusing, recycling and
- Stakeholder disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste
and (d) other waste.
- Regulatory reporting
MMFSL is a service sector organisation providing Loans & Investments options and not a product
2.  oes the entity have processes in place to avoid/ manage conflict of interests involving members
D manufacturing company. Being a responsible organisation, during the year we have recycled 17+ tones of
of the Board? (Yes/No) If yes, provide details of the same. paper and 59+ tones of e-waste through Government registered recyclers.
MMFSL has zero tolerance towards unethical business practices and ensures adherence to relevant
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes /
principles including in relation to conflict of interest. The Company has a separate Code of Conduct (‘CoC’)
No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility
for Board, Senior Management and Employees which provides that ‘Directors and Senior Management shall
(EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same
observe the highest standards of ethical conduct and integrity and shall work to the best of their ability.
The said CoC requires them to not engage in any material business relationship or activity, which conflicts Not Applicable
with their duties towards the Company.
Leadership Indicators
Code of Conduct for Board- COC_Directors.pdf (mahindrafinance.com)
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for
Code of Conduct for Senior Management & Employees- 10-code-of-conduct-for-senior-management-and- manufacturing industry) or for its services (for service industry)? If yes, provide details in the
employees.pdf (mahindrafinance.com) following format?
Mahindra& Mahindra Financial Services Limited is engaged in the business of providing various types of
loans e.g. Vehicles, SMEs and Personal Loans. The lifecycle of loan begins with Loan origination, applicant’s
acceptance credential investigation, loan processing, approval, disbursement, and repayment and customer
assistance services. The detailed process is highlighted below.
Loan Origination: Loans are sourced through various online and offline methods and through various
affiliated channel partners. Majority of the loans especially for Vehicles are sourced through various Vehicle
dealer showrooms, for other loans through a network of partners which includes firms, individuals and
online initiatives.
Loan Approval Process: Eligibility check- For loans sourced directly through MMFSL, this may include a
set of KYC documents, income proof, income statements, residential proof, 7/12 land papers and Credit
Bureau Scores.
Field investigation: Verification of documents is conducted through online verification and if required
supplemented by field investigation at nearest branch. Digital Process and Video KYC is adopted on need
basis. Addressing channel partner enquiries by adopting mix of both the processes to provide confidence
in credit underwriting.

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Appraisal: Based on Bureau Score, field investigation process and overall assessment credit underwriting 5. Reclaimed products and their packaging materials (as percentage of products sold) for each
process is complete and a Loan to Value ratio and loan tenure is finalised. Special cases are referred to product category.
higher offices for approval and decision based on appraisal document. Use of digital technologies and
digital information transmission throughout the journey has helped speed up the appraisal process, reduce Reclaimed products and their packaging materials as % of total
Indicate product category
products sold in respective category
paper consumption, visits to customer location and reduce communication time within the organisation
and to our customers. NIL NIL

Disbursement: Sanction letter in the vernacular language to be issued to all borrowers whose loan have PRINCIPLE 3
been sanctioned after due diligence. Disbursement process is initiated after approval of the loan and
Businesses should respect and promote the well-being of all employees, including those in their value
verification of requisite documents.
chains
Repayment and Closure: This can be broadly classified as normal repayment, closure and early closure. Essential Indicators
After a loan is fully repaid, pre-paid, all documents collected at the time of appraisal including mortgage
1. a. Details of measures for the well-being of employees:
release letter is handed over to the customer indicating that all dues are fully repaid.
Deposits: Mahindra Finance is also a Deposit taking NBFC. The deposit lifecycle begins with sourcing from % of employees covered by
the customer or through channel partners. All KYC checks and customer information are collected and Category
Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
reviewed to ensure compliance and regulations. Deposit Certificates are issued to customers on timely Total (A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
basis. Regular communication regarding their deposit i.e. maturity, renewal, withdrawal is sent to customers. (B) (C) (D) (E) (F)
The customers have access to online platform to access all information related to their deposits. Permanent
employees
Customer Grievance redressal: As a good governance practice, a Report on Customer Grievance
Male 25,354 25,354 100 25,354 100 N.A 25,354 100 0 0%
Redressal pertaining to grievances/ complaints received from the Company’s customers is maintained.
Company’s Email address/Call center/toll-free support for grievance redressal and other relevant details Female 975 975 100 975 100 975 100 N.A
is provided. Employees engaged in customer complaint and resolution ensure that all such complaints are Total 26,329 26,329 26,329 975 25,354
handled and responded satisfactorily & in Confidentiality manner within a prescribed TAT. Dissatisfaction Other than
with solutions provided can be escalated to nominated persons as provided on the website and details are Permanent
also provided over call center support. Post resolution of the complaint, the customer will get a mail/sms employees
confirming the resolution of the complaint. Male 1,266
Female 62 Off role employees at Mahindra Finance are covered under ESIC scheme.
2. If there are any significant social or environmental concerns and/or risks arising from production Total 1,328
or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments
(LCA) or through any other means, briefly describe the same along-with action taken to mitigate b. Details of measures for the well-being of workers:
the same.
% of workers covered by
Name of Product / Service Description of the risk / concern Action Taken
Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
Not Applicable Total (A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
3. Percentage of recycled or reused input material to total material (by value) used in production Permanent
(for manufacturing industry) or providing services (for service industry). workers
Male
Recycled or re-used input material
Indicate input material
to total material Female Not Applicable
FY2023 FY2022 Total
Current Previous Other than
Financial Year Financial Year
Permanent
Not Applicable workers
Male
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) Female Not Applicable
reused, recycled, and safely disposed, as per the following format:
Total
FY2023 FY2022
Current Financial Year Previous Financial Year 2. Details of retirement benefits, for Current FY and Previous Financial Year.
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
FY2023 Current Financial Year FY2022 Previous Financial Year
Plastics (including - 0.0149 - - 0.124 -
No. of No. of
packaging) Deducted and No. of Deducted and
Benefits employees No. of workers employees
deposited with workers deposited with
E-waste - 59.51 - - 39 - covered as covered as a % covered as
the authority covered as a % the authority
a % of total of total workers a % of total
Hazardous waste - - - - - - (Y/N/N.A.) of total workers (Y/N/N.A.)
employees employees
Other waste (paper & - 17.5 - - 5 -
PF 100 Y 100 Y
metal waste)
Gratuity 100 N.A Y 100 N.A Y
ESI 53.39 Y 50.58 Y

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3. Accessibility of workplaces 8. Details of training given to employees and workers:

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
FY2023 FY2022
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being
taken by the entity in this regard. On Health and On Skill On Health and On Skill
Category Total (A) Total (A)
safety measures up gradation safety measures up gradation
Yes, to the best of our ability and wherever possible, our offices are accessible to differently-abled employees. No. (B) % (B/A) No. (C) % (C/A) No.(E) % (E/D) No.(F) % (F/D)
Being future ready we consider the following opening/shifting of branches. Employees
1. Preference for ground floor. Male 25,354 11,600 45.75 22,940 90 19,199 3,428 17.14 16,524 86.06
Female 975 200 20.51 904 93 799 765 95.74
2. Feasibility of creating ramps & railings in ground floor branches.
Total 26,329 11,800 44.82 23,844 91 19,998 17,289 86.45
3. PWD friendly washrooms. Workers
4. Branch layouts are being designed considering the easy access/ passage for PWDs (Wherever feasible). Male
Female Not Applicable
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Total
Act, 2016? If so, provide a web-link to the policy.
MMFSL is an Equal Opportunity Employer and strongly endorses the right of equal opportunity for 9. Details of performance and career development reviews of employees and worker:
associates who are differently-abled. We commit to carrying out the provisions of the Rights of Persons
with Disabilities Act, 2016 (Act) in letter and spirit including providing specific opportunities in identified FY2023 FY2022
positions where they could be employed. Category Current Financial Year Previous Financial Year

https://www.mahindrafinance.com/media/393196/human-rights-policy.pdf Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
5. Return to work and Retention rates of permanent employees and workers that took parental leave. Male 25,354 22,542 89 17,112 16,481 96
Female 975 847 87 724 651 90
Permanent employees Permanent workers
Gender Total 26,329 23,389 89 17,835 17,132 96
Return to work Retention Return to work
Retention rate
rate (%) rate (%) rate (%) Workers
Male 99.59 74.20 NIL NIL Male
Not Applicable
Female 50.00 63.08 Female
Total 96.35 72.13 Total

6. Is there a mechanism available to receive and redress grievances for the following categories of 10. Health and safety management system:
employees and worker? If yes, give details of the mechanism in brief. a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/
No). If yes, the coverage such system?
Yes/No
(If Yes, then give details of the At MMFSL, Occupational Health and Safety Management system (OHSMS) has been developed to improve
mechanism in brief) performance & reduce work-related accidents.
Permanent Workers NA
Coverage:
Other than Permanent Workers Yes
1) Emergency Response planning for branches
Permanent Employees
Other than Permanent Employees NA 2) Incident Reporting and Investigation system at branches

The company has Insaaf Policy on its internal portal with an objective to provide standardised policy 3) Hazard Identification and risk assessment for fire, electrical safety and other aspects at branches
for free, fair & time bound closure of disciplinary issues. All stakeholders can raise grievances with the 4) Safety Training at MMFSL branches
Corporate Ombudsman, by either sending an e-mail to grievanceredressal_mmfsl@mahindra.com or
reporting verbally on telephone no. 022 6652 6006. 5) Implementation of control measures at branches
6) Safety review meeting
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
b. What are the processes used to identify work-related hazards and assess risks on routine and non-routine
FY2023 FY2022
basis by the entity?
No. of No. of
employees in employees At MMFSL, we have developed Risk Assessment template as per Central Safety council guidelines to
Total Total
employees
respective
employees
in respective identify work related hazards and assess risks for routine and non routine activities.
Category category, who category, who
in respective % (B/A) in respective % (D/C)
are part of are part of
category
association(s)or
category
association(s) c. Whether you have processes for workers to report the work related hazards and to remove themselves
(A) (C)
Union or Union from such risks. (Y/N)
(B) (D)
Yes, we have Incident reporting and investigation process to report work related hazards.
Total Permanent The Company does not have any employee associations. The Company promotes equal opportunity
Employees to all the employees to raise their queries directly to the senior management through webcast’s
d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
and the same is being answered/addressed by them.
(Yes/ No)
Male
Yes
Female

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11. Details of safety related incidents, in the following format: Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of:
FY2023 FY2022
Safety Incident/Number Category Current Previous (A) Employees (Y/N)
Financial Year Financial Year
(B) Workers (Y/N).
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours Employees 0.001 2.26
worked) A. 
Yes, the company provides its employees with the Group Term Life Insurance, Personal Accident
Workers NA NA
cover, Employee Death Life Insurance, Provident Fund Benefit and Gratuity Benefit.
Total Recordable work-related injuries Employees 1 7
B. Not Applicable
Workers NA NA
No. of fatalities Employees Nil 2
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted
Workers NA NA and deposited by the value chain partners.
High consequence work-related injury or ill-health (excluding fatalities) Employees Nil Nil
MMFSL works towards greater integration of environmental & social considerations in its procurement
Workers NA NA practices by setting clear expectations with vendors and suppliers to abide by labour laws, human rights
and regulations in their regions of business. The organisation strives to influence its partners in the value
12. Describe the measures taken by the entity to ensure a safe and healthy work place. chain to participate in the responsible and sustainable business conduct depending upon their means
We have taken following measures to ensure safe and healthy work place:- and resources through contractual commitments, seeking confirmations of compliance depending on the
nature of product / services rendered.
1) Risk assessment of branches.
2) Strengthening of Safety equipment at branches. 3.  rovide the number of employees / workers having suffered high consequence work- related
P
injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been are
3) Safety committee meeting for addressing H&S risk at branches. rehabilitated and placed in suitable employment or whose family members have been placed in
4) Conduct fire safety training and mock drill periodically. suitable employment:

5) Safety Advisories on workplace safety through MMFSL world for awareness to employees. No. of employees/workers that
are rehabilitated and placed in
Total no. of affected employees/
6) Safety inspection at offices during branch visit to address risk and implementation of suggested suitable employment or whose
workers
control measures. family members have been placed
in suitable employment

13. Number of Complaints on the following made by employees and workers: FY2023 FY2022 FY2023 FY2022
Employees
FY2023 FY2022 Nil Nil Nil Nil
Workers
(Current Financial Year) (Previous Financial Year)
Pending Pending
Filed during
resolution at Remarks
Filed during the
resolution at Remarks 4. Does the entity provide transition assistance programs to facilitate continued employability and
the year year
the end of year the end of year the management of career endings resulting from retirement or termination of employment? (Yes/
Working Conditions No)
Nil Nil
Health & Safety The Company extends the benefit of Mediclaim policy to the employee (Manager Grade and above) and
his/her spouse after retirement till the age of 75 years. However the company has not undertaken any
14. Assessments for the year: retrenchment of employees till now. In case in the future, when such step is required to be taken due to any
unavoidable circumstances, the Company will actively undertake such activities for the outgoing employees.
% of your plants and offices that were assessed (by entity or
statutory authorities or third parties) 5. Details on assessment of value chain partners:
Health and safety practices
58 % of value chain partners (by value of business done with such partners) that were
Working Conditions
assessed

Health and safety practices We have started pre safety evaluation for 2 vendors on safety aspect to assess the
15. Provide details of any corrective action taken or underway to address safety-related incidents (if safety maturity of vendors.
any) and on significant risks / concerns arising from assessments of health & safety practices and Working Conditions
working conditions.
In order to make our branches safer for our employees we have initiated: 6.  rovide details of any corrective actions taken or underway to address significant risks / concerns
P
arising from assessments of health and safety practices and working conditions of value chain
• Fire alarm panel partners
• Fire rated doors Nil
• Fire retardant Interior finishing
• Electrical insulating rubber mat
• Fire extinguishers, directional signage
• Electric leakage circuit breakers (ELCB)
• Conducting Safety training & mock drills
• Installing CCTV in all the branches.
• Ziman Safety app for branch accountant, cashiers and women employees.
• Health & safety advisory to prevent incidents.

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PRINCIPLE 4 Leadership Indicators

Businesses should respect the interests of and be responsive to all its stakeholders 1. Provide the processes for consultation between stakeholders and the Board on economic,
Essential Indicators environmental, and social topics or if consultation is delegated, how is feedback from such
consultations provided to the Board.
1. Describe the processes for identifying key stakeholder groups of the entity.

Periodic discussion of the Board and its committees with the management and the concerned
Our stakeholders are a valuable part of our journey to success and growth story. Our actions are in
departments help us identify critical stakeholder concerns and align our priorities with their expectations.
many ways connected to their progress and well-being. Overcoming various hurdles and hardships during
The Stakeholder Relationship Committee of the Board provides guidance and oversees the mechanism
crisis situations, we have managed to strengthen our mutual trust and remained aligned to our collective
for addressing grievances and complaints from stakeholders and aligning Stakeholder priorities with the
aspirations to our business growth as well as the society at large. Through robust engagement process,
business strategy. The committee also reviews the Environmental, Social and Governance obligations of
we address stakeholders’ concerns; maintain transparency of our current and future plans while creating
the company towards the stakeholders.
shared value. Mahindra Finance engages with the stakeholders round the year, to maintain healthy, trust-
based relationships with them. The team connects with a diverse range of stakeholders through formal
2.  hether stakeholder consultation is used to support the identification and management of
W
and informal mechanisms for their inputs in the materiality assessment process.
environmental, and social topics (Yes / No). If so, provide details of instances as to how the inputs
received from stakeholders on these topics were incorporated into policies and activities of the entity.
2.  ist stakeholder groups identified as key for your entity and the frequency of engagement with
L
each stakeholder group. Yes, we incorporate the feedback received through continued engagement with stakeholders into our
policies & practices. We have prioritised our Identified key material issues accordingly and incorporated
Whether
Frequency of in our ESG roadmap development. Their inputs help us in making strategic and operational decisions for
Channels of communication engagement Purpose and scope of engagement promoting climate resilience.
identified as
Stakeholder (Email, SMS, Newspaper, Pamphlets, (Annually/ including key
Vulnerable &
Group Advertisement, Community Meetings, Half yearly/ Topics and concerns raised
Marginalised 3. Provide details of instances of engagement with, and actions taken to address the concerns of
Notice Board, Website) Other Quarterly / During such engagement
Group (Yes/No)
others) vulnerable/ marginalised stakeholder groups.
Community Yes Website, Emails, SMS, Community Ongoing & Need A harmonious relationship with the Feedback received from the local communities by way of direct engagement and third-party impact
engagement initiatives Social Media. based communities where we operate assessments helps align the orientation of our CSR interventions with the future needs and expectations
is key to our social license to
continue operations.
of the local communities and society at large.
Employees No Employee engagement activities, Ongoing & Need Our employees are at the centre
Trainings, Email notifications, Website, based of all our operations; their
PRINCIPLE 5
Employee portals, Talent Mgt and collaborative skill and expertise are Businesses should respect and promote human rights
growth opportunities platforms. essential for our growth. Essential Indicators
Customers No Customer meets, Dealer/OEM events Ongoing, weekly, Customer feedback, or as we call
1. Employees and workers who have been provided training on human rights issues and policy(ies) of
monthly it, the Voice of Customer, is key
to process improvements, quality the entity, in the following format:
enhancement, service performance
FY2023 FY2022
and cost optimisation.
Current Financial Year Previous Financial Year
Category No. of No. of
employees employees
Total (A) % (B/A) Total (C) % (D / C)
workers workers
covered (B) covered (D)
Employees
Permanent 26329 23517 89.32% 19998 4153 20.8%
Regulators No Qtr/Annual compliance reports, Need based Key for ensuring compliance,
continued engagement and interpretation of regulations and Other than 1328 24 1.8% NA NA NA
representation uninterrupted operations. permanent
Total Employees 27657 23547 85.11% 19998 4153 20.8%
Shareholders/ No Newspaper, notices, press Qtr & need As providers of capital, they are key
Investors releases, website, Stock exchange based to our growth and expansion plans. Workers
announcements, AGM, Integrated Permanent
Report, BRR Other than Not Applicable
Dealers/OEMs No Dealer portal formal mechanism, Ongoing Key for providing enhanced permanent
events purchase experience along with Total Workers
best after sales service.
2. Details of minimum wages paid to employees and workers, in the following format

FY2023 FY2022
Current Financial Year Previous Financial Year
Lenders No AGM, Qtr and Annual Results Qtr & Annual A positive relationship enables us to Category Equal to Minimum More than Minimum Equal to Minimum More than Minimum
raise growth capital in a timely and Total (A) Wage Wage Total (D) Wage Wage
cost-effective manner. No. (B) % (B/A) No(C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Vendors/ No Dealer engagement meets Ongoing Our operations are closely linked Permanent 26,329 - - 26,329 100 19,998 - - 19,998 100
Suppliers with the timely availability and Employees
services that we source, which in Male 25,354 - - 25,354 100 19,199 - - 19,199 100
turn, have a material impact on the
Female 975 - - 975 100 799 - - 799 100
efficiency of our service delivery.
Other Than 1,328 1,328 100 - - 1,101 841 100 - -
Permanent
Employees
Male 1,266 1,266 100 - - 1,058 828 100 - -
Female 62 62 100 - - 43 13 100 - -

230 Empowering Emerging India INTEGRATED REPORT 2022-23 231

 Business
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3. Details of remuneration/salary/wages, in the following format: 8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, The company has designed Code of Conduct and exclusion list for all the value chain partners stating
Male Female
Mahindra Finance will not engage in any financing activities where there are activities causing human
Median Median rights violation. Also the suppliers code of conduct requires all the suppliers to mandatorily provide self
remuneration/ remuneration/
Number salary/ wages Number salary/ wages declaration stating that their businesses will not engage in any sought of activities leading to Human
of respective of respective Rights & Environmental violations.
category (in Cr) category https://www.mahindrafinance.com/media/124187/mmfsl-suppliers-coc.pdf
Board of Directors (BOD) 5 0.47 2 0.41 exclusion_list_17_06_2019.pdf (mahindrafinance.com)
Key Managerial Personnel 2 4.82 1 1.03
Employees other than BOD and KMP 25,352 0.037 974 0.045 9. Assessments for the year:
Workers Not Applicable
% of your plants and offices that were assessed (by entity or
statutory authorities or third parties)
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights Child labour
impacts or issues caused or contributed to by the business? (Yes/No) Forced/involuntary labour
Yes, The Corporate Ombudsman is the focal point responsible for addressing human rights which can be Sexual harassment
reached at grievanceredressal_mmfsl@mahindra.com 100%
Discrimination at workplace
Wages
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Others – please specify
Respect for human rights is considered as one of the fundamental and core values of the Company. The
Company strives to support, protect, and promote human rights to ensure fair and ethical business and 1. Child labour: Mahindra Finance do not employee child labour. All the employees employed by Mahindra
employment practices are followed. There are committees and policies formed to handle grievances and Finance are no less than 18 years of age as per the employee database.
complaints related to human rights issues and the details are placed on the intranet of the Company. The
2. Forced/involuntary labour: Mahindra Finance do not employee forced / involuntary labour.
Company has zero tolerance towards and prohibits all forms of child labour, slavery, forced labour, physical,
sexual, psychological, or verbal abuse. 3. Sexual harassment: Mahindra Finance has a gender neutral Policy on Prevention of Sexual
Harassment applicable to all persons associated with or visiting the company at any of its locations.
Stakeholders can raise concerns that relate to actual or suspected violations of the Code of Ethical
Internal Committees are constituted at the Head office and 5 circles, covering PAN India locations,
Business Conduct, including human rights issues and address the complaints / concerns to the corporate
representing members from different functions, for timely reporting and providing speedy resolution
ombudsman either by sending an e-mail to grievanceredressal_mmfsl@mahindra.com or verbally on
of sexual harassment cases in an unbiased and time bound manner.
telephone no. 022 6652 6006. The detailed process is explained in the publicly available policy.
https://www.mahindrafinance.com/media/393196/human-rights-policy.pdf 4. Discrimination at workplace: Mahindra finance never discriminate or treat employees or job applicants
https://www.mahindrafinance.com/media/124475/whistle-blower-policy.pdf unfairly and are committed to provide equal opportunity in employment. No decisions to be made on
the basis of gender, race, colour, nationality, ancestry, religion, physical or mental disability, medical
6. Number of Complaints on the following made by employees and workers: condition, sexual orientation, or marital status. The same is mentioned in the Code of conduct and all
the employee and senior management abide by the Code of Conduct.
FY2023 FY2022
Current Financial Year Previous Financial Year 5. Wages: All the employees of Mahindra Finance are paid salary as per the applicable statutes.
Pending Pending
Filed during the Filed during the
year
resolution at Remarks
year
resolution at Remarks 10. P
 rovide details of any corrective actions taken or underway to address significant risks / concerns
the end of year the end of year arising from the assessments at Question 9 above.
Sexual Harassment 01 0 The allegation NIL NIL NIL Nil
was not
substantiated.
No action taken Leadership Indicators
Discrimination at NIL NIL NIL NIL NIL NIL 1.  etails of a business process being modified / introduced as a result of addressing human rights
D
workplace grievances/complaints.
Child Labour NIL NIL NIL NIL NIL NIL We have not received any human rights complaint in this year. We have a method of continuously Monitoring
Forced Labour/ NIL NIL NIL NIL NIL NIL and ensuring human rights are upheld in the organisation. We work on various Compliance policies like
Involuntary Labour code of conduct, Prevention of sexual harassment, Fair Practices Code etc as part of our learning and
Wages NIL NIL NIL NIL NIL NIL development endeavours. We continuously ensure that employees are undergoing this training, for building
Other human rights NIL NIL NIL NIL NIL NIL awareness, sensitisation through an annual certification methodology.
related issues
2. Details of the scope and coverage of any Human rights due-diligence conducted.
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and We are creating a Due diligence process in FY2024, which will consist of cross functional team members
harassment cases who would be trained on a particular template. This will help us in Checking and ensuring Compliances on
A formal grievance mechanism is available to all employees to report or raise their concerns confidentially aspects of human rights and regulations. We conduct regular internal assessments to track if there is any
and anonymously without fear of retaliation, along with mechanism to consult on issues through the explicit adverse human rights impact on our stakeholders.
means provided by Human Rights Statement, Disciplinary Action Committee reviews, Whistle Blower and
Vigil Mechanism policies. Mahindra Finance aims to provide a safe working environment and prohibits any
form of discrimination/ harassment or related retaliation against or by any associate. We have policies
which intend to prohibit such occurrences and ensure that there are no adverse consequences when an
employee reports a complaint on discrimination or harassment.

232 Empowering Emerging India INTEGRATED REPORT 2022-23 233

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3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements 3. Provide details of the following disclosures related to water, in the following format:
of the Rights of Persons with Disabilities Act, 2016?
FY2023 FY2022
Yes and we are also making necessary changes while opening new/shifting of existing branches like: Parameter (Current (Previous
Financial Year) Financial Year)
1. Preference for ground floor.
Water withdrawal by source (in kilolitres)
2. Feasibility of creating ramps & railings. (i) Surface water 2,33,559 1,70,024
3. PWD friendly washrooms. (ii) Groundwater NA NA

4. Branch layouts are being designed considering the easy access/ passage for PWDs. (iii) Third party water NA NA
(iv) Seawater / desalinated water NA NA
4. Details on assessment of value chain partners: (v) Others NA NA
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 2,33,559 1,70,024
% of value chain partners (by value of business done with such partners) that were assessed
Total volume of water consumption (in kilolitres) 2,33,559 1,70,024
Sexual Harassment We are in process of developing a Due diligence process in for our value chain partners
Water intensity per rupee of turnover (Water consumed / turnover) 0.00000211 0.00000175
Discrimination at workplace starting from FY2024, which will consist of different department team members who
KL/ per INR KL/ per INR
would be trained on conducting value chain partners human rights assessments. This will
Child Labour turnover turnover
help us in Checking and ensuring Compliances on aspects of human rights and regulations
Forced Labour/Involuntary for Value chain partners. Apart from that we have mandated all our suppliers to sing the Water intensity (optional) – the relevant metric may be selected by the entity 8.87 KL per 8.50 KL per
Labour suppliers code of conduct stating that their business is in compliance of all human rights employee employee
Wages and other laws mandated by legal body.
Note: Indicate if any independent assessment/ evaluation/assurance have been carried out by an external agency? (Y/N) If yes,
Others – please specify name of the external agency- Bureau Veritas

4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its
5.  rovide details of any corrective actions taken or underway to address significant risks / concerns
P
coverage and implementation
arising from the assessments at Question 4 above.
Our water usage is primarily for employee consumption and we take measures to judiciously control
Nil
the same.
PRINCIPLE 6:
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following
Businesses should respect and make efforts to protect and restore the environment format:
Essential Indicators
FY2023 FY2022
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following Parameter
Please specify
(Current (Previous
unit
format: Financial Year) Financial Year)
NOx g/kW-hr 0.275 -
FY2023 FY2022
Parameter (Current (Previous SOx - -
Financial Year) Financial Year) Particulate matter (PM) g/kW-hr 0.113 -
Total electricity consumption (A) 81,323.42GJ 57,854.49GJ Persistent organic pollutants (POP) - - -
Total fuel consumption (B) 31,138.90GJ 20,689.97GJ Volatile organic compounds (VOC) - - -
Energy consumption through other sources (C) NA NA Hazardous air pollutants (HAP) - - -
Total energy consumption (A+B+C) 112462.32 GJ 78544.49 GJ SO2 g/kW-hr 0.048 -
Energy intensity per rupee of turnover 0 .00000102 0 .000000808 Non Methane Hydrocarbon g/kW-hr 0.121 -
(Total energy consumption/ turnover in rupees) GJ/ per INR GJ/ per INR
Carbon Monoxide g/kW-hr 0.1422 -
turnover turnover
Energy intensity (optional) – the relevant metric may be selected by the entity 4.3 GJ per 3.9 GJ per We have initiated DG Stack Emission Testing for 10 Location with highest Diesel consumption in FY2023.
employee employee We shall gradually increase the number of location in FY2024.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency- Bureau Veritas name of the external agency.

2.  oes the entity have any sites / facilities identified as designated consumers (DCs) under the
D Yes- Equinox Labs.
Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose
whether targets set under the PAT scheme have been achieved. In case targets have not been
achieved, provide the remedial action taken, if any.
Not Applicable.
However current legislations related to energy efficiency are followed across all branches for potential
energy saving through measures like installation/replacement of energy efficient electrical fittings like
LED’s, 5 star rated AC’s and BLDC motor fans.

234 Empowering Emerging India INTEGRATED REPORT 2022-23 235

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6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the 9.  riefly describe the waste management practices adopted in your establishments. Describe the
B
following format: strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your
products and processes and the practices adopted to manage such wastes.
FY2023 FY2022
Parameter Unit (Current (Previous Being into financial service sector, the company does not generate any hazardous and toxic chemicals
Financial Year) Financial Year) waste. As a part of our waste management practice, the company recycles its E-waste and paper based
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, Metric tones of 2,008.10Tones 1,306.90Tones waste every year through government registered vendors and the same is validated by external agency.
PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, Metric tones of 16,038 .78 12,695 .84 10. If the entity has operations/offices in/around ecologically sensitive areas (such as national
PFCs, SF6, NF3, if available) CO2 equivalent Tones Tones parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal
Total Scope 1 and Scope 2 emissions per rupee of turnover Metric tones/ 0.000000163 0.000000144 regulation zones etc.) where environmental approvals / clearances are required, please specify
turnover Tones/per INR Tones/per INR details in the following format:
turnover turnover
Location of
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant Tones Co2e/ 0.69 0.70 S.
operations/
Type of Whether the conditions of environmental approval / clearance are being complied with?
metric may be selected by the entity Employee No. operations (Y/N) If no, the reasons thereof and corrective action taken, if any.
offices

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, Not Applicable
name of the external agency.
11. Details of environmental impact assessments of projects undertaken by the entity based on
Yes- Bureau Veritas applicable laws, in the current financial year:

7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then Whether
Results
provide details. conducted by
EIA communicated in Relevant Web
Name and brief details of project Date independent
Notification No. public domain link
Yes, there are ongoing projects like installation of energy efficient electric fitting in new and existing external agency
(Yes / No)
branches to reduce the environmental footprint. (Yes / No)
Not Applicable
• LED lights replaced in 1137 branches in place of CFL lights
• Installation of higher efficiency air conditioners i.e- old 3-star fixed speed ACs were replaced with 5-star *Mahindra & Mahindra Financial Services Ltd is a service provider. The company provides Lending & Fixed Deposit services with
inverter split ACs at 223 branches, resulting in a total of 9,58,638 kWh electricity being saved focus on Semi Rural & Rural regions of India and so Environmental Impact Assessment is not applicable.

• Replaced conventional fans with efficient BLDC fans at 19 branches. 12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India;
such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of
8. Provide details related to waste management by the entity, in the following format: Pollution) Act, Environment protection act and rules there under (Y/N). If not, provide details of
all such non-compliances, in the following format:
FY2023 FY2022
Parameter (Current (Previous
Financial Year) Financial Year) Any fines/
penalties/
Total Waste generated (in metric tonnes) action taken
Provide Corrective
Plastic waste (A) 0.0149 0.124 S. by regulatory
Specify the law/ regulation/ guidelines which was not complied with details of the action taken, if
No. agencies such as
E-waste (B) 59.51 39 non- compliance any
pollution control
Bio-medical waste (C) Not Applicable Not Applicable boards or by
Construction and demolition waste (D) Not Applicable Not Applicable courts

Battery waste (E) Not Applicable Not Applicable Not Applicable

Radioactive waste (F) Not Applicable Not Applicable However, MMFSL is compliant with all applicable environmental law/ regulations/ guidelines in India.
Other Hazardous waste. Please specify, if any. (G) Not Applicable Not Applicable
Other Non-hazardous waste generated (H). Please specify, if any. Paper (Break-up by 17.5 5.6 Leadership Indicators
composition i.e. by materials relevant to the sector) 1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-
Total (A+B+C+D+E+F+G + H) 77.01 44.9 renewable sources, in the following format:
For each category of waste generated, total waste recovered through recycling,
re-using or other recovery operations (in metric tonnes) FY2023 FY2022
Category of waste Parameter (Current (Previous
Financial Year) Financial Year)
(i) Recycled 76.51 44.9
From renewable sources
(ii) Re-used - -
(iii) Other recovery operations - - Total electricity consumption (A) - -
Total 76.51 44.9 Total fuel consumption (B) - -
For each category of waste generated, total waste disposed by nature of disposal Energy consumption through other sources (C) - -
method (in metric tonnes) Total energy consumed from renewable sources (A+B+C) - -
Category of waste From non-renewable sources
(i) Incineration Total electricity consumption (D) 81,323.42GJ 57,854.49GJ
(ii) Landfilling Not Applicable Not Applicable
Total fuel consumption (E) 31,138.90GJ 20,689.97GJ
(iii) Other disposal operations
Energy consumption through other sources (F) - -
Total
Total energy consumed from non-renewable sources (D+E+F) 1,12,462.32 GJ 78544.49 GJ
 ote: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
N
name of the external agency.
 ote: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
N
Yes- Bureau Veritas name of the external agency.
Yes- Bureau Veritas

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2. Provide the following details related to water discharged: FY2023 FY2022

Parameter (Current (Previous
FY2023 FY2022 Financial Year) Financial Year)
Parameter (Current (Previous
(v) Others
Financial Year) Financial Year)
- No treatment
Water discharge by destination and level of treatment (in kilolitres) Not Applicable Not Applicable
- With treatment – please specify level of treatment
(i) To Surface water Taking the nature of business
into consideration, the Company’s Total water discharged (in kilolitres)
- No treatment
usage of water is restricted to
- With treatment – please specify level of treatment human consumption purposes Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
(ii) To Groundwater name of the external agency.
only. Efforts have been made that
- No treatment water is consumed judiciously in
the office premises by measures
Yes- Bureau Veritas
- With treatment – please specify level of treatment
like installing aerator taps in the
(iii) To Seawater offices. 4. Please provide details of total Scope 3 emissions & its intensity, in the following format:
- No treatment
Parameter Unit FY2023 FY2022
- With treatment – please specify level of treatment
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, Metric tonnes 15,625 .54 821 .54 Tonnes
(iv) Sent to third-parties PFCs, SF6, NF3, if available) of CO2 Tonnes
- No treatment equivalent
- With treatment – please specify level of treatment Total Scope 3 emissions per rupee of turnover 0.000000141 0.00000000845
(v) Others Tco2e per INR Tco2e per INR
turnover turnover
- No treatment
Total Scope 3 emission intensity (optional) – the relevant metric may be Tones Emission 0.59 tonnes/ 0.041 tonnes/
- With treatment – please specify level of treatment
selected by the entity per employee per employee per employee
Total water discharged (in kilolitres)
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
name of the external agency Yes- Bureau Veritas
Yes- Bureau Veritas
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For e
 ach facility / plant located in areas of water stress, provide the following information: 5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators
above, provide details of significant direct & indirect impact of the entity on biodiversity in such
(i) Name of the area
areas along-with prevention and remediation activities.
(ii) Nature of operations Not Applicable
(iii) Water withdrawal, consumption and discharge in the following format:
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions
FY2023 FY2022 to improve resource efficiency, or reduce impact due to emissions/ effluent discharge/waste
Parameter (Current (Previous generated, please provide details of the same as well as outcome of such initiatives, as per the
Financial Year) Financial Year) following format:
Water withdrawal by source (in kilolitres) In FY2023 the company invested in replacing old electrical fittings like Normal lights to LED’s across 1137
(i) Surface water branches, 3 star Rated Ac’s to 5 star rated inverter Ac’s across and Normal fans to energy efficient BLDC
(ii) Groundwater fans across 75 branches which resulted in savings of electricity consumption from grid.
(iii) Third party water Not Applicable Not Applicable
(iv) Seawater / desalinated water 7. Does the entity have a business continuity and disaster management plan? Give details in 100
words/ web link.
(v) Others
Total volume of water withdrawal (in kilolitres) The entity has an Emergency Response control plan which also covers disaster management plan. We are
in the process of developing Business continuity plan.
Total volume of water consumption (in kilolitres)
Water intensity per rupee of turnover (Water consumed / turnover)
8.  isclose any significant adverse impact to the environment, arising from the value chain of the
D
Water intensity (optional) – the relevant metric may be selected by the entity entity. What mitigation or adaptation measures have been taken by the entity in this regards.
Water discharge by destination and level of treatment (in kilolitres) We constantly engage with our value chain partners. We have in the reporting year conducted BRSR capacity
(i) Into Surface water building workshop for our value chain partners through best practices and concerns on environmental
- No treatment aspects. We have not experienced any significant adverse impact to the environment arising from our
- With treatment – please specify level of treatment value chain.
(ii) Into Groundwater
9. Percentage of value chain partners (by value of business done with such partners) that were
- No treatment
assessed for environmental impacts.
- With treatment – please specify level of treatment
Not Applicable Not Applicable In FY2023 we have revised our supplier’s code of conduct which also requires all the suppliers to mandatorily
(iii) Into Seawater
provide self declaration stating that their businesses will not engage in any sought of activities leading
- No treatment
to Human Rights & Environmental violations however we have initiated capacity building of value chain
- With treatment – please specify level of treatment partners on environmental impacts.
(iv) Sent to third-parties
- No treatment
- With treatment – please specify level of treatment

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PRINCIPLE 7 PRINCIPLE 8
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is Businesses should promote inclusive growth and equitable development
responsible and transparent Essential Indicators
Essential Indicators 1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on
1. a . Number of affiliations with trade and industry chambers/ associations. applicable laws, in the current financial year.
MMFSL is affiliated with many trade and industry chambers/ associations to ensure a collaborative
Whether
environment that helps us to access knowledge, build a network, improve our reputation, advertise, conducted by
Results
Name and brief details SIA Notification Date of communicated in
educate, market, and lobby the government for policy changes that helps business and the society. independent Relevant Web link
of project No. notification public domain
external agency
(Yes / No)
(Yes / No)
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of
such body) the entity is a member of/ affiliated to. Swabhimaan Not applicable Not applicable Yes YES https://www.mahindrafinance.
Impact com/media/392625/impact-
Covid 19 Relief Project Not applicable Not applicable Yes evaluation-of-covid-19-
Reach of trade Assessments
and industry Nanhi Kali Not applicable Not applicable Yes completed resposne.pdf
S.
Name of the trade and industry chambers/ associations chambers/
No. in FY2023 The Impact Assessment for
associations Mahindra Pride School Not applicable Not applicable Yes
(State/National) have been eligible projects as per CSR
Women Economic Not applicable Not applicable Yes communicated rules have been commissioned.
1 Finance Industry Development Council (FIDC) National in Public The reports are expected by
Empowerment
2 Federation of Indian Chambers of Commerce and Industry (FICCI) National Domain via June 2023
3 Confederation of Indian Industry (CII) National website
and award
4 Bombay Chamber of Commerce and Industry National applications.
5 IITB-Washington University International
6 IMC Chamber of Commerce & Industry National 2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is
7 Assocham National being undertaken by your entity, in the following format:
8 United Nations Global Compact Network International
No. of Project Amounts paid
S. Name of Project for which R&R is % of PAFs
State District Affected to PAFs in the
No. ongoing covered by R&R
2. Provide details of corrective action taken or underway on any issues related to anti- competitive Families (PAFs) FY (In ₹)
conduct by the entity, based on adverse orders from regulatory authorities. Not applicable
Brief of the Corrective
Name of authority
case action taken 3. Describe the mechanisms to receive and redress grievances of the community.
No material instances reported All the complaints/grievances can be raised with the Corporate Ombudsman, by either sending an e-mail
to grievanceredressal.mmfsl@mahindra.com or reporting verbally on telephone no. 022 6652 6006. The
Leadership Indicators complete process of raising such concerns is detailed in these policies.
1. Details of public policy positions advocated by the entity:
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Through our value creation process we strive to achieve common goals and routinely work along with our
stakeholders to advance public policies of interest to us and the financial services industry. Our stakeholder FY2023 FY2022
groups form the cornerstones of our growth story, and our existence is connected to their progress and Directly sourced from MSMEs/ small producers 5.77 8.2
well-being in various ways. Despite hardships during crisis situations, we managed to strengthen our mutual
trust and remained aligned to our collective aspirations through meaningful advocacy and deliberations at Sourced directly from within the district and neighboring districts 100 100
forums. Through robust engagement processes and mechanisms, we Endeavour to create shared value for
the long-term. Our efforts towards building a strategic and proactive dialogue by advocating our thoughts Leadership Indicators
on established platforms of association enables us to gain deeper insights into our business drivers as 1.  rovide details of actions taken to mitigate any negative social impacts identified in the Social
P
well as the needs of society. This has helped us improve our internal processes, capitalise on business Impact Assessments (Reference: Question 1 of Essential Indicators above):
opportunities, reduce our operational risk and remain ahead of competition while creating greater value for
all stakeholders. Details of negative social impact identified Corrective action taken

Nil- No negative social impacts identified

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2. Provide the following information on CSR projects undertaken by your entity in designated S. Amount spent
State Aspirational District
aspirational districts as identified by government bodies: No. (In ₹)

42 Maharashtra Nandurbar 41,514

S. Amount spent
State Aspirational District
No. (In ₹) 43 Maharashtra Osmanabad 29,47,494
1 Andhra Pradesh Visakhapatnam 7,40,370 44 Maharashtra Washim 3,146
2 Andhra Pradesh Vizianagaram 3,74,440 45 Odisha Dhenkanal 1,852
3 Andhra Pradesh YSR (Kadapa) 1,10,630 46 Odisha Balangir 34,539
4 Andhra Pradesh Visakhapatnam 19,68,750 47 Odisha Dhenkanal 77,415
5 Andhra Pradesh Vizianagaram 31,250 48 Punjab Moga 44,54,340
6 Andhra Pradesh Kadapa 5,44,287 49 Punjab Moga 98,01,225
7 Andhra Pradesh Visakhapatnam 35,02,731 50 Tamil Nadu Ramanathapuram 13,354
8 Andhra Pradesh Vizianagaram 1,42,920 51 Tamil Nadu Ramanathapuram 25,530
9 Assam Darrang 1,852 52 Tamil Nadu Virudhunagar 25,530
10 Bihar Banka 12,778 53 Uttar Pradesh Fatehpur 12,778
11 Bihar Jamui 12,778 54 Uttar Pradesh Fatehpur 1,108
12 Bihar Muzaffarpur 20,95,592 55 Uttar Pradesh Shravasti 53,09,478
13 Bihar Sheikhpura 25,556 56 Uttar Pradesh Sonbhadra 34,539
14 Bihar Muzaffarpur 12,42,561 57 Uttar Pradesh Shravasti 1,34,87,400
15 Bihar Banka 1,852 58 Uttar Pradesh Balrampur 8,621
16 Bihar Begusarai 84,561 59 Uttar Pradesh Chandauli 17,242
17 Bihar Katihar 98,853 60 Uttar Pradesh Chitrakoot 8,621
18 Bihar Muzaffarpur 2,00,088 61 Uttar Pradesh Siddharthnagar 25,863
19 Bihar Sitamarhi 1,05,999 62 Uttarakhand Haridwar 10,33,764
20 Jharkhand Bokaro 12,778 63 Uttarakhand Haridwar 9,75,000
21 Jharkhand Dumka 20,95,592 64 Uttarakhand Udham Singh nagar 6,500
22 Jharkhand Godda 25,556 65 Uttarakhand Haridwar 20,247
23 Jharkhand Gumla 2,93,894 66 Uttarakhand Haridwar 94,831
24 Jharkhand Khunti 63,890
25 Jharkhand Latehar 1,02,224 3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalised /vulnerable groups? (Yes/No)
26 Jharkhand Lohardaga 89,446
(b) From which marginalised /vulnerable groups do you procure?
27 Jharkhand Pakur 1,78,892
(c) What percentage of total procurement (by value) does it constitute?
28 Jharkhand Ramgarh 12,778
29 Jharkhand Ranchi 15,46,138 MMFSL being a financial service provider, the entity does not have any major procurement for its services.
30 Jharkhand Simdega 63,890
However, it is the endeavor of Mahindra Finance to procure locally, sustainably and from marginalised /
vulnerable suppliers, MSME’s for requirements in areas like branch assets. We give preference to local
31 Jharkhand West Singhbhum 15,20,582 suppliers of goods and services to help create economic opportunities locally.
32 Jharkhand East Singhbhum 1,03,617
4.  etails of the benefits derived and shared from the intellectual properties owned or acquired by
D
33 Jharkhand Giridih 48,831 your entity (in the current financial year), based on traditional knowledge:
34 Jharkhand Ramgarh 1,25,055
Owned/ Basis of
S. Benefit shared
35 Jharkhand Ranchi 7,97,970 Intellectual Property based on traditional knowledge Acquired (Yes/ calculating
No. (Yes/ No)
No) benefit share
36 Jharkhand Simdega 34,539
Not Applicable
37 Karnataka Raichur 1,38,156
38 Karnataka Yadgir 1,34,583
39 Kerala Wayanad 51,060
40 Kerala Wayanad 1,02,426
41 Maharashtra Washim 1,852

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5. Details of corrective actions taken or underway, based on any adverse order in intellectual 3. Number of consumer complaints in respect of the following:
property related disputes wherein usage of traditional knowledge is involved.
FY2023 Remarks FY2022 Remarks
Name of authority Brief of the Case Corrective action taken Pending Pending
Received during Received during
resolution at resolution at
Not Applicable the year the year
end of year end of year
Data privacy 0 0 - 0 0 -
6. Details of beneficiaries of CSR Projects: Advertising 0 0 - 0 0 -
Cyber-security 0 0 - 0 0 -
% of
beneficiaries Delivery of essential 0 0 - 0 0 -
No. of persons
S. from services
CSR Project benefitted from
No. vulnerable and Restrictive Trade 43 37 - - - -
CSR Projects
marginalised
groups
Practices
Unfair Trade Practices 299 262 - 217 187 -
1 Swabhimaan- Financial & Digital Awareness 1,42,091 100
Other 337 309 - 198 25 -
2 Swabhimaan-Scholarship for Driver’s Children 7,066 100
3 Swabhimaan-Road Safety Training for Drivers 7,857 100
4. Details of instances of product recalls on account of safety issues:
4 Swabhimaan-Drivers Training for Freshers 3,122 100
Reasons for
5 Swabhimaan-Auto Mechanic Training 2,330 100 Number
recall
6 Nanhi Kali 14,033 100 Voluntary recalls
7 Mahindra Pride Classroom 62,971 100 Not Applicable
Forced recalls
8 Women Empowerment Projects 2,591 100
9 Disaster Management 2,228 100
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy?
10 Skill Development for People with Disability (PwDs) 256 100
(Yes/No) If available, provide a web-link of the policy.
11 Swachh Bharat Initiatives 3,622 100
Yes
12 Samantar- Visit to Orphanage/Old Age 516 100 http://bitswebpublic.mahindrafs.com/email/23/June/6/MMFSL-&-its-Subsidiary-ISMS-Information-Security-
13 Gyandeep- Visit to Municipal Schools 3,000 100 Management-Syste-Framework-v1.2.pdf
14 Sehat- Health Camps 1,920 100
15 ESG- Water conservation 2,450 100 6. Provide details of any corrective actions taken or underway on issues relating to advertising, and
16 Mahindra Hariyali- Tree Plantation 454 100 delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances
of product recalls; penalty / action taken by regulatory authorities on safety of products / services.
PRINCIPLE 9 There were no issues identifies and thus no corrective actions taken.
Businesses should engage with and provide value to their consumers in a responsible manner
Leadership Indicator
Essential Indicators
1. Channels / platforms where information on products and services of the entity can be accessed
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
(provide web link, if available).
Customers can call us on a dedicated toll-free number, they can write to us on an dedicated email id
The information on various products & services of the Company is available on:
or reach out to us on our social handles. There is a Complaint Register maintained at each branch for
Website: https://www.mahindrafinance.com/
recording customer Complaint. All complaints received on the above channels are registered on Service
Company’s Mobile applications – Mahindra Finance App on Play store and Apple store
Portal and assigned to respective teams/ SPOCs for resolution. Once the complaint gets closed, feedback
Call centre @ 1800 233 1234
is taken in the form of an SMS.
Mahindra Finance Branches
2. Turnover of products and/services as a percentage of turnover from all products/service that
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/
carry information about:
or services.
As a percentage to total turnover Various steps taken to Educate customers on responsible usage of services are through multi language
Environmental and social parameters relevant to the product Not Applicable SMSs, IVRs, videos, in app notifications. The Company also complies with all disclosure requirements relating
Safe and responsible usage to its services, as per SEBI guidelines on product/ services labeling within risk and disclosure categories.
Recycling and/or safe disposal
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential
MMFSL is not a product company but a provider of financial services. We ensure safe and responsible usage services.
of our materials and the recycling and/or safe disposal of our waste- both electronic and otherwise.
We have robust mechanism in place for sending out communication to consumers regarding any risk of
disruption or discontinuation of essential services. Depending on the magnitude of the issue various modes
of communication are explored and utilised. Both, digital and offline mediums of communication are used
for consumer information. Primary modes include letters to consumers, information through our branch
network, information dissemination via sms, e-mails, websites, mobile applications and social media handles.
In case the magnitude of risk is high, online and offline advertising mediums are also explored and used for
reaching out to masses.

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4. Does the entity display product information on the product over and above what is mandated as
per local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out INDEPENDENT BUSINESS
any survey with regard to consumer satisfaction relating to the major products / services of the
entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)
Yes- The Company displays its services information on the over and above what is mandated as per local
RESPONSIBILITY AND
laws information through brochures, leaflets and website. Information related to our products is displayed/
available at all our branches. Product information is also available on our Website. SUSTAINABILITY REPORTING
Customers can also access information related to their loans on our Mobile App.
We conduct Market Research from time to time to understand the pulse of our customers, their satisfaction
with our products & services as well as grievances. Few of the Research Projects that we undertake are:
(BRSR) ASSURANCE STATEMENT
• Monthly Net Promoter Score (NPS) for our customers
• UI/UX Research for our Website & Apps
• Customised Research for our Products & Services

5. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact
No data privacy and Cyber security breaches from info-sec perspective.
“Business Responsibility and
b. Percentage of data breaches involving personally identifiable information of customers:
No data privacy breaches involving personally identifiable information from info-sec perspective.
Sustainability Reporting (BRSR)
Assurance Statement for
Mahindra & Mahindra Financial
Services Limited”
for
Reporting Period:

1st April 2022 – 31st March 2023

Bureau Veritas (India) Private Limited

72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ
Gate #2, Andheri (East) Mumbai-400 093 India.

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INDEPENDENT BUSINESS
RESPONSIBILITY AND
Independent Business
SUSTAINABILITY REPORTING Responsibility and Sustainability
Reporting (BRSR) Assurance
(BRSR) ASSURANCE STATEMENT Statement
Introduction and Objective of Work
BUREAU VERITAS (INDIA) PRIVATE LIMITED (hereinafter abbreviated as BVIPL) has been engaged
by the MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED (hereinafter abbreviated
“MMFSL”)for the reporting period from 01.04.2022 to 31.03.2023 based on Business responsibility and
Sustainability Reporting (hereinafter abbreviated as “BRSR”) which is a part of its annual report as per
“Business Responsibility and SEBI circular (SEBI/HO/CFD/CMD-2/P/CIR/2021/562) dated 10th May 2021).

Sustainability Reporting (BRSR) On site assessments were conducted for this assurance for MMFSL at three locations Maninagar
Branch site, Ahmedabad (16th March 2023 for 0.5 assessment day), Ahmedabad RO site, Ahmedabad

Assurance Statement for 16th March 2023 for 0.5 assessment day, Corporate office at Worli, Mumbai (19th April 2023 for 1
assessment day) and Corporate office at Worli, Mumbai on 26th April 2023 for 2 assessment days.

Mahindra & Mahindra Financial Intended User

The intended user of this assurance statement is the MMFSL. We disclaim any liability or responsibility

Services Limited” to a third party for decisions, whether investment or otherwise, based on this Assurance Statement. We
planned and performed our work to obtain the evidence we considered necessary to provide a basis
for our assurance opinion. The assurance engagement considers an uncertainty of ±5% based on
for materiality threshold for estimation/measurement errors and omissions. We did not engage with any
external stakeholders as part of this assurance engagement.
Reporting Period:
Scope, Boundary and Limitations of assurance
Independent assurance has been provided for selected BRSR performance disclosures as presented
in the BRSR Report. The reporting boundary included data and information for the period 01.04.2022
1st April 2022 – 31st March 2023 to 31.03.2023 for MMFSL, based on BRSR framework.

The assurance included verification of the sample data and information on selected material topics
reported by MMFSL.

The Scope of BRSR Assurance includes:

➢ An assessment of the methods used for data collection and reporting for the selected BRSR
performance indicators.
➢ Testing of such systems, including related internal controls.
➢ Testing, on a sample basis, of evidence supporting the data.
➢ Verification of the sample data and information on selected material topics reported by MMFSL
Bureau Veritas (India) Private Limited for the defined reporting period.
➢ Assessment of the consistency between the data for the selected BRSR Principle’s
72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ performance indicators and the related written comments in the narrative of the Report
Gate #2, Andheri (East) Mumbai-400 093 India. ➢ The Company's compliance to legal obligations/disclosures
➢ The General and topic specific disclosures subject to assurance
➢ Completion of assurance statement for inclusion in the report, which will reflect the verification
findings and conclusion.
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Independent Business Independent Business

Responsibility and Sustainability Responsibility and Sustainability
Reporting (BRSR) Assurance Reporting (BRSR) Assurance
Statement Statement
Methodology adopted for Assurance of Quantitative data Published in BRSR report
BVIPL scope has not considered the below data as a part of BRSR assurance: BVIPL BRSR assurance process involve specified procedures to obtain evidence about the reliability
of the data provided from the identity. The nature, timing and extent of procedures selected depend on
➢ Information apart from the defined reporting period and boundary the data and evidence provided, including the verification of the associated risks with the material topics
➢ Compliance to any legal issue related to the authority except environmental and social aspects. of the selected BRSR principles disclosures and their relevance. While assessing the associated risks,
➢ Any of the statement related to company aspect or reputation. internal strategy is being considered during preparation of the report to design the assurance procedure
and validating their appropriateness to the possible extent.
The reported information on General Disclosures, Management and Process Disclosures and
Principle Wise Performance Disclosure: As per the scope of the assurance, sample evidence, information and explanations that were
considered necessary in relation to the assurance scope were considered and accordingly conclusions
have been made as mentioned below:
Section A: General Disclosures ➢ Understanding the appropriateness of various assumptions used for estimation of data by
➢ Details of listed company MMFSL.
➢ Products/Services ➢ Reviewing the Report to ensure that there is no misrepresentation of disclosures in accordance
➢ Operations with BRSR 9 Principles as per scope of assurance and findings.
➢ Employees ➢ Reviewing the materiality matrix and stakeholder engagement framework deployed at MMFSL.
➢ Holding, Subsidiary and Associate Companies (including joint ventures) ➢ Assessing the systems used for data compilation and reporting on the basis of Universal
➢ CSR Details Disclosures and Topic Specific Disclosures of material topics as listed in the assurance scope
➢ Transparency and Disclosures Compliances above.
➢ Verifying systems and procedures used for quantification, collation and analysis of BRSR
Principles performance disclosures included in the Report.
➢ Assessing the month wise data considering the similarity, reliability and accuracy
Section B: Management and Process Disclosures ➢ Verifying select key performance data through the data provided by MMFSL:
➢ Policy and management processes, Governance, leadership and oversight • Testing reliability and accuracy of data on a sample basis
• Assessing stakeholder engagement process and approach to stakeholder engagement
regarding the key topics and concerns raised as defined in the report.
• Limited review of the materiality assessment process based on the information provided.
Section C: Principle Wise Performance Disclosure • Reviewing the processes deployed for collection, compilation and reporting of BRSR
➢ Principle 1: Businesses should conduct and govern themselves with integrity, and in a manner Principles performance disclosures.
that is Ethical, Transparent and Accountable
➢ Principle 2: Businesses should provide goods and services in a manner that is sustainable and Sample data were collected in order to support BVIPL conclusions on the verified information and data.
safe However, limited available information and details is reviewed during the assurance of MMFSL.
➢ Principle 3: Businesses should respect and promote the well-being of all employees, including
those in their value chains Conclusions
➢ Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders BRSR report of MMFSL is reviewed based on the scope of the assurance. It is concluded that
➢ Principle 5: Businesses should respect and promote human rights information presented in MMFSL BRSR Report in accordance with BRSR standards is proper, adequate
➢ Principle 6: Businesses should respect and make efforts to protect and restore the environment and maintained in line with the material topics considered for the reporting. The report is found to be
➢ Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do with a “Reasonable” level of assurance.
so in a manner that is responsible and transparent
➢ Principle 8: Businesses should promote inclusive growth and equitable development Responsibilities
➢ Principle 9: Businesses should engage with and provide value to their consumers in a The assurance statement is made solely for “MMFSL” as per the governing contractual terms and
responsible manner. conditions of the assurance engagement contract between “MMFSL” and BVIPL. To the extent that the
law permits, BVIPL owe no responsibility and do not accept any liability to any other party other than

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Independent Business Independent Business

Responsibility and Sustainability Responsibility and Sustainability
Reporting (BRSR) Assurance Reporting (BRSR) Assurance
Statement Statement
“MMFSL” for the work BVIPL have performed for this assurance report or for our conclusions stated in No member of the assurance team has a business relationship with “MMFSL”, its Directors, Managers
the paragraph below. or officials beyond that required of this assignment. We have conducted this verification independently
and there has been no conflict of interest.
BVIPL shall not be held liable or responsible for any type of decision a person or entity would make
The assurance team has extensive experience in conducting assurance over environmental, social,
based on this assurance statement. While reading the assurance statement, stakeholders shall
recognize and accept the limitation and scope as mentioned above. ethical and health & safety information, systems and processes an excellent understanding of BVIPL
standard methodology for the assurance of BRSR Report.

Exclusions and Limitations

Excluded from the scope of work is any assurance of information relating to: Bureau Veritas (India) Private Limited
➢ Activities outside the defined assurance period stated hereinabove . 72 Business Park, 9th Floor, MIDC Cross Road ‘C’, Opp. SEEPZ Gate #2,
➢ Positional statements, expressions of opinion, belief, aim or future intention by “MMFSL” and Andheri (East) Mumbai-400 093 India.
statements of future commitment;
➢ The assurance does not extend to the activities and operations of “MMFSL” outside of the
scope and geographical boundaries mentioned in the BRSR report as well as the operations
undertaken by any other entity that may be associated with or have a business relationship with
“MMFSL”.
➢ The assurance of the economic and financial performance data of MMFSL is based only on the
audited annual reports of MMFSL and our conclusions rely entirely upon that audited report.
Aanandkrishna Akilla
Lead Assurer
Limitations of the assessment work undertaken:
The limitations are provided by BVIPL, as observations- with actionable points and priority, to MMFSL
in a separate Management Letter. These however do not affect our conclusion regarding the report

Uncertainty
The reliability of assurance is subject to uncertainty (ies) that are inherent in the assurance process.
Uncertainties stem from limitations in quantification models used, assumptions or data conversion
Sanjay Patankar
factors used or may be present in the estimation of data used to arrive at results. The conclusions in
Technical Reviewer
respect of this assurance are naturally subject to any inherent uncertainty (ies) involved in the
assurance process.

Statement of independence, impartiality, and competence Date: 17/06/2023

BVIPL is an independent professional services company that specialises in Quality, Health, Safety, Place: Mumbai, India
Social and Environmental management with almost 190 years history in providing independent
assurance services.
BVIPL has implemented a Code of Ethics across the business to maintain high ethical standards among
staff in their day-to-day business activities. We are particularly vigilant in the prevention of conflicts of
interest.

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Independent Auditors’ Report Sr.

No.
Key audit matter Auditor’s Response

• 
Judgements used in projecting economic scenarios • 
completeness, accuracy and appropriateness of
and probability weights applied to reflect future information used in the estimation of the PD and LGD
economic conditions; and for the different stages depending on the nature of the
To the Members of Basis for Opinion • Adjustments to model driven ECL results to address
portfolio; and
Mahindra & Mahindra Financial Services Limited We conducted our audit of the standalone financial emerging trends. • 
accuracy of the computation of the ECL estimate
statements in accordance with the Standards on including reasonableness of the methodology used to
(Refer Note 2.5 (ii), 2.11 (h), 7 and 49.2 to the Standalone
Report on the Audit of the Standalone Auditing specified under section 143(10) of the Act determine macro-economic overlays and adjustments
Financial Statements)
to the output of the ECL Model.
Financial Statements Opinion (SAs). Our responsibilities under those Standards
We have audited the accompanying standalone are further described in the Auditor’s Responsibility Test of details on a sample in respect of the following:
financial statements of Mahindra & Mahindra for the Audit of the Standalone Financial Statements • accuracy and completeness of the input data such as
Financial Services Limited (the “Company”), which section of our report. We are independent of the period of default and other related information used in
comprise the Balance Sheet as at 31 st March 2023, Company in accordance with the Code of Ethics issued estimating the PD;
and the Statement of Profit and Loss (including by the Institute of Chartered Accountants of India
• the mathematical accuracy of the ECL computation by
Other Comprehensive Income), the Statement (ICAI) together with the ethical requirements that using the same input data as used by the Company;
of Cash Flows and the Statement of Changes in are relevant to our audit of the standalone financial
statements under the provisions of the Act and the • 
completeness and accuracy of the staging of the
Equity for the year then ended, and a summary loans and the underlying data based on which the ECL
of significant accounting policies and other Rules made thereunder, and we have fulfilled our
estimates have been computed;
explanatory information. other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe • 
evaluating the adequacy of the adjustment made to
that the audit evidence obtained by us is sufficient and the output as per the ECL Model to ensure that the
In our opinion and to the best of our information adjustment was in conformity with the policy approved
and according to the explanations given to us, the appropriate to provide a basis for our audit opinion on
by the Audit Committee of the Company.
aforesaid standalone financial statements give the the standalone financial statements.
information required by the Companies Act, 2013
Key Audit Matters 2 Information Technology and General Controls: With the assistance of our IT specialists, we obtained an
(“the Act”) in the manner so required and give a understanding of the Company’s IT applications, databases
true and fair view in conformity with the Indian Key audit matters are those matters that, in our The Company is dependent on its Information Technology
and operating systems relevant to financial reporting
Accounting Standards prescribed under section professional judgment, were of most significance in (“IT”) systems due to the significant number of transactions
and the control environment. For these elements of the
133 of the Act read with the Companies (Indian our audit of the standalone financial statements of that are processed daily across such multiple and discrete
IT infrastructure the areas of our focus included access
IT systems. Also, IT application controls are critical to
Accounting Standards) Rules, 2015, as amended, the current year. These matters were addressed in security (including controls over privileged access), program
ensure that changes to applications and underlying data
(“Ind AS”) and other accounting principles generally the context of our audit of the standalone financial change controls, database management and network
are made in an appropriate manner and under controlled
operations. In particular:
accepted in India, of the state of affairs of the statements as a whole, and in forming our opinion environments. Appropriate controls contribute to
Company as at 31 st March 2023, and its profit , thereon, and we do not provide a separate opinion mitigating the risk of potential fraud or errors as a result • 
We tested the design, implementation, and operating
total comprehensive income, its cash flows and the on these matters. We have determined the matters of changes to applications and data. On account of the effectiveness of the Company’s general IT controls
changes in equity for the year ended on that date. described below to be the key audit matters to be pervasive use of its IT systems, the testing of the general over the IT systems relevant to financial reporting.
computer controls of the IT systems used in financial This included evaluation of Company’s controls
communicated in our report.
reporting was considered to be a Key Audit Matter. over segregation of duties and access rights being
provisioned / modified based on duly approved requests,
access for exit cases being revoked in a timely manner
Sr.
Key audit matter Auditor’s Response and access of all users being recertified during the
No.
period of audit.
1 Allowances for Expected Credit Losses (“ECL”): We have examined the policies approved by the Board of • We also tested key automated business cycle controls
Directors of the Company that articulate the objectives and logic for the reports generated through the IT
As at 31st March 2023, the carrying value of loan assets
of managing each portfolio and their business models. infrastructure that were relevant for financial reporting
measured at amortised cost, aggregated ₹ 79,454.73
We have also verified the methodology adopted for or were used in the exercise of internal financial
crore (net of allowance of expected credit loss ₹ 3,287.83 controls with reference to financial statements. Our
computation of ECL (“ECL Model”) that addresses policies
crore) constituting approximately 83% of the Company’s tests included testing of the compensating controls or
approved by the Board of Directors, procedures and
total assets. Significant judgement is used in classifying alternate procedures to assess whether there were any
controls for assessing and measuring credit risk on all
these loan assets and applying appropriate measurement unaddressed IT risks that would materiality impact the
lending exposures measured at amortised cost. Additionally, Financial Statements.
principles. ECL on such loan assets measured at amortised we have confirmed that adjustments to the output of the
cost is a critical estimate involving greater level of ECL Model is consistent with the documented rationale
management judgement. As part of our risk assessment, and basis for such adjustments and that the amount of
we determined that the ECL on such loan assets has a high adjustment has been approved by the Audit Committee of
degree of estimation uncertainty, with a potential range the Board of Directors. Our audit procedures related to the
of reasonable outcomes for the Standalone Financial allowance for ECL included the following, among others:
Statements. The elements of estimating ECL which involved
increased level of audit focus are the following: Testing the design and operating effectiveness of the
following:
• Qualitative and quantitative factors used in staging
the loan assets measured at amortised cost; • 
completeness and accuracy of the EAD and the
classification thereof into stages consistent with
• 
Basis used for estimating Probabilities of Default the definitions applied in accordance with the policy
(“PD”), Loss Given Default (“LGD”) and Exposure at approved by the Board of Directors including the
Default (“EAD”) at product level with past trends; appropriateness of the qualitative factors to be applied;

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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Information Other than the Financial financial statement that give a true and fair view and • Evalu ate the a ppropr iatene s s of accou nting From the matters communicated with those charged
Statements and Auditor’s Report Thereon are free from material misstatement, whether due policies u sed and the rea sonableness of with governance, we determine those matters
The Company’s Board of Directors is responsible for to fraud or error. accounting estimates and related disclosures in that were of most significance in the audit of the
the other information. The other information comprises the standalone financial statements made by the standalone financial statements of the current year
the information included in the Board’s Report In preparing the standalone financial statements, management. and are therefore the key audit matters. We describe
(including annexures thereto), Business Responsibility management is responsible for assessing the these matters in our auditor’s report unless law or
and sustainability report and Management Discussion Company’s ability to continue as a going concern, • Conclude on the appropriateness of regulation precludes public disclosure about the
and Analysis (“MD&A”) (collectively referred to as disclosing, as applicable, matters related to going management’s use of the going concern basis matter or when, in extremely rare circumstances, we
“other information”), but does not include the financial concern and using the going concern basis of of accounting and, based on the audit evidence determine that a matter should not be communicated
statements and our auditor’s report thereon. The accounting unless management either intends to obtained, whether a material uncertainty exists in our report because the adverse consequences of
Other Information is expected to be made available to liquidate The Company’s or to cease operations, or related to events or conditions that may ca st doing so would reasonably be expected to outweigh
us after the date of our auditor’s report. has no realistic alternative but to do so. signif icant doubt on the Company ’s abilit y to the public interest benefits of such communication.
continue as a going concern. If we conclude that
• Our opinion on the standalone financial statements Those Board of Directors are also responsible for a material uncer tainty exists, we are required Report on Other Legal and Regulatory
does not cover the other information and we do not overseeing the Company’s financial reporting process. to draw attention in our Auditor’s report to the Requirements
express any form of assurance conclusion thereon. related disclosures in the standalone f inancial
Auditor’s Responsibility for the Audit of the 1. As required by Section 143(3) of the Act, based
statements or, if such disclosures are inadequate,
Standalone Financial Statements on our audit we report that:
• In connection with our audit of the standalone to modify our opinion. Our conclusions are based
financial statements, our responsibility is to read Our objectives are to obtain reasonable assurance on the audit evidence obtained up to the date of
the other information and, in doing so, consider about whether the standalone financial statements a. 
We have sought and obtained all the
our Auditor’s report. However, future events or
w he t her t he ot her inf or mat ion is mater ial ly as a whole are free from material misstatement, information and explanations which to the
conditions may cause the Company to cease to
inconsistent with the standalone f inancial whether due to fraud or error, and to issue an best of our knowledge and belief were
continue as a going concern.
statements or our knowledge obtained during auditor’s report that includes our opinion. Reasonable necessary for the purposes of our audit.
the course of our audit or otherwise appears to assurance is a high level of assurance, but is not a • Evaluate the overall presentation, structure and
be materially misstated. guarantee that an audit conducted in accordance b. 
In our opinion, proper books of account
content of the standalone financial statements,
with SAs will always detect a material misstatement as required by law have been kept by the
i n cl u d i ng t h e d i s cl o s u re s , a n d w h e t h e r t h e
When we read the other information included in when it exists. Misstatements can arise from fraud standalone f inancial statements represent the Company so far as it appears from our
the above reports, if we conclude that there is or error and are considered material if, individually or underlying transactions and events in a manner examination of those books.
material misstatement therein, we are required to in the aggregate, they could reasonably be expected that achieves fair presentation.
communicate the matter to those charged with to influence the economic decisions of users taken on c. The standalone Balance Sheet, the
governance and determine the actions under the the basis of these standalone financial statements. • Materiality is the magnitude of misstatements Statement of Profit and Loss including
applicable laws and regulations. in the s t andalone f inancial s t atement s that , Other Comprehensive Income, the
As part of an audit in accordance with SAs, we exercise individually or in aggregate, makes it probable Statement of Cash Flows and Statement of
Responsibilities of Management and professional judgment and maintain professional that the economic decisions of a rea sonably Changes in Equity dealt with by this Report
Those Charged with Governance for the skepticism throughout the audit. We also: knowledgeable user of the standalone financial are in agreement with the relevant books
Standalone Financial Statements s t atement s may be inf luence d. We consider of account.
The Company’s Board of Directors is responsible • Identify and assess the risks of material
quantitative materiality and qualitative factors
for the matters stated in section 134(5) of the Act misstatement of the standalone financial d. 
In our opinion, the aforesaid standalone
in ( i ) p l a nning t he s co p e o f o u r a u di t wo r k
with respect to the preparation of these standalone statements, whether due to fraud or error, design financial statements comply with the Ind AS
and in evaluating the results of our work; and
financial statements that give a true and fair view and perform audit procedures responsive to those specified under Section 133 of the Act.
( ii ) to ev a l u ate t he e f f e c t o f a ny ident if ie d
of the financial position, financial performance risks, and obtain audit evidence that is sufficient
misstatement s in the standalone f inancial
including other comprehensive income, cash flows and appropriate to provide a basis for our opinion. e. On the basis of the written representations
statements.
and changes in equity of the Company in accordance The risk of not detecting a material misstatement received from the directors as on 31 March
with the Ind AS and other accounting principles resulting from fraud is higher than for one resulting 2023 taken on record by the Board
We communicate with those charged with
generally accepted in India. This responsibility also from error, as fraud may involve collusion, forgery, of Directors, none of the directors are
governance regarding, among other matters, the
includes maintenance of adequate accounting intentional omissions, misrepresentations, or the
planned scope and timing of the audit and significant disqualified as on 31 st March 2023 from
records in accordance with the provisions of the override of internal control.
audit findings, including any significant deficiencies being appointed as a director in terms of
Act for safeguarding the assets of the Company in internal control that we identify during our audit. Section 164(2) of the Act.
and for preventing and detecting frauds and • Obtain an understanding of internal f inancial
other irregularities; selection and application of control relevant to the audit in order to design
We also provide those charged with governance with f. With respect to the adequacy of the internal
appropriate accounting policies; making judgments audit procedures that are appropriate in the
a statement that we have complied with relevant financial controls over standalone financial
and estimates that are reasonable and prudent; circumstances. Under section 143(3) (i) of the
Act, we are also responsible for expressing our ethical requirements regarding independence, and statements reporting of the Company and
and design, implementation and maintenance of the operating effectiveness of such controls,
opinion on whether the Company has adequate to communicate with them all relationships and
adequate internal financial controls, that were
internal f inancial controls system in respect of other matters that may reasonably be thought to refer to our separate Report in “Annexure
operating effectively for ensuring the accuracy and
Standalone financial statements in place and the bear on our independence, and where applicable, A”. Our report expresses an unmodified
completeness of the accounting records, relevant to
operating effectiveness of such controls. related safeguards. opinion on the adequacy and operating
the preparation and presentation of the standalone

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Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
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Report

effectiveness of the Company’s internal with the understanding, whether ensuing Annual General Meeting. The reporting under rule 11(g) of Companies
financial controls over financial reporting. recorded in writing or otherwise, amount of the dividend proposed is in (Audit and Auditors) Rules, 2014 is not
that the Intermediary shall, accordance with the section 123 of the applicable for the financial year ended
g. 
W ith respect to the other matters to whether, directly or indirectly Act, as applicable. 31 st March 2023.
be included in the Auditor’s Report in lend or invest in other persons or
accordance with the requirements of entities identified in any manner vi. Proviso of Rule 3(1) of the Companies 2. As required by the Companies (Auditor’s Report)
section 197(16) of the Act, as amended, whatsoever by or on behalf of the (Accounts) Rules, 2014 for maintaining Order, 2020 (the “Order”) issued by the Central
Company (“Ultimate Beneficiaries”) books of accounts using accounting Government in terms of section 143(11) of the
• In our opinion and to the best of or provide any guarantee, security software which has a feature of Act, we give in “Annexure B” a statement on
our information and according to or the like on behalf of the recording audit trail (edit log) facility is the matters specified in paragraphs 3 and 4 of
the expl anations given to u s, the Ultimate Beneficiaries; applicable to the Company with effect the Order.
remuneration paid by the Company to its from April 1, 2023, and accordingly,
directors during the year is in accordance (b) The Management has represented
with the provisions of section 197 of the that, to the best of it’s knowledge
Act. and belief, no funds (which are For Mukund M. Chitale & Co. For Deloitte Haskins & Sells
material either individually or in the Chartered Accountants Chartered Accountants
h. 
With respect to the other matters to aggregate) have been received by (Firm’s Registration No. 106655W) (Firm’s Registration No. 117365W)
be included in the Auditor’s Report in the Company from any person(s)
accordance with Rule 11 of the Companies or entity(ies), including foreign M. M. Chitale Rupen K. Bhatt
(Audit and Auditors) Rules, 2014, as entities (“Funding Parties”), with the Partner Partner
amended in our opinion and to the best understanding, whether recorded (Membership No. 14054) (Membership No. 046930)
of our information and according to the in writing or otherwise, that the (UDIN: 23014054BGSXGQ6278) (UDIN: 23046930BGXRJP9315)
explanations given to us: company shall, whether, directly or
indirectly, lend or invest in other Place: Mumbai Place: Mumbai
i. The Company has disclosed the persons or entities identified in Date: 28th April 2023 Date: 28th April 2023
impact of pending litigations on its any manner whatsoever by or
financial position in its standalone on behalf of the Funding Party
financial statements. (“Ultimate Beneficiaries”) or
provide any guarantee, security or
ii. The Company has made provision, the like on behalf of the Ultimate
as required under the applicable Beneficiaries; and
law or accounting standards, for
material foreseeable losses, if any, (c) Based on the audit procedures that
on long-term contracts including has been considered reasonable and
derivative contracts. appropriate in the circumstances,
nothing has come to our notice that
iii. There has been no delay in transferring has caused us to believe that the
amounts, required to be transferred, to representations under sub-clause
the Investor Education and Protection (i) and (ii) of Rule 11(e), as provided
Fund by the Company. under (a) and (b) above, contain any
material misstatement.
iv. (a) The Management has represented
that, to the best of it’s knowledge v. The final dividend proposed with
and belief, no funds (which are respect to previous year, declared and
material either individually or in the paid by the Company during the year is
aggregate) have been advanced or in compliance with section 123 of the
loaned or invested (either from Act, as applicable. As stated in Note
borrowed funds or share premium or no. 23(ii) to the standalone financial
any other sources or kind of funds) statements, the Board of Directors
by the Company to or in any other of the Company have proposed final
person(s) or entity(ies), including dividend for the year which is subject
foreign entities (“Intermediaries”), to the approval of the members in the

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Annexure “A”
or fraud may occur and not be detected. Also, Internal Financial Controls system with reference to
projections of any evaluation of the Internal Financial Standalone Financial Statements and such Internal
Controls with reference to Standalone Financial
TO THE INDEPENDENT AUDITOR’S REPORT Financial Controls with reference to Standalone
Statements to future periods are subject to the risk
that the Internal Financial Controls with reference Financial Statements were operating effectively as at
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of
our report of even date) to Standalone Financial Statements may become 31 st March 2023, based on the criteria for Internal
inadequate because of changes in conditions, or Financial Controls with reference to Standalone
that the degree of compliance with the policies or Financial Statements established by the respective
Report on the Internal Financial Controls with Standalone Financial Statements and their operating procedures may deteriorate.
reference to Standalone Financial Statements effectiveness. Our audit of Internal Financial Controls Company considering the essential components
under Clause (i) of Sub-section 3 of Section 143 with reference to Standalone Financial Statements Opinion of internal control stated in the Guidance Note on
of the Companies Act, 2013 (the “Act”) included obtaining an understanding of Internal Audit of Internal Financial Controls Over Financial
In our opinion, to the best of our information and
Financial Controls with reference to Standalone
according to the explanations given to us, the Reporting issued by the Institute of Chartered
We have audited the Internal Financial Controls with Financial Statements, assessing the risk that a
Company has, in all material respects, an adequate Accountants of India.
reference to Standalone financial statements of material weakness exists, and testing and evaluating
Mahindra & Mahindra Financial Services Limited (the the design and operating effectiveness of internal
“Company”) as of 31 st March 2023, in conjunction control based on the assessed risk. The procedures
with our audit of the Standalone Financial Statements selected depend on the auditor’s judgement, including
of the Company for the year ended on that date. the assessment of the risks of material misstatement
For Mukund M. Chitale & Co. For Deloitte Haskins & Sells
of the Standalone Financial Statements, whether due
Chartered Accountants Chartered Accountants
Management’s Responsibility for Internal to fraud or error.
(Firm’s Registration No. 106655W) (Firm’s Registration No. 117365W)
Financial Controls
The Company’s management is responsible for We believe that the audit evidence we have obtained,
M. M. Chitale Rupen K. Bhatt
establishing and maintaining Internal Financial is sufficient and appropriate to provide a basis
Partner Partner
Controls based on the internal control with for our audit opinion on the Company’s internal
(Membership No. 14054) (Membership No. 046930)
reference to Standalone Financial Statements financial controls with reference to standalone
(UDIN: 23014054BGSXGQ6278) (UDIN: 23046930BGXRJP9315)
criteria established by the Company considering financial statements.
the essential components of internal control stated Place: Mumbai Place: Mumbai
in the Guidance Note on Audit of Internal Financial Meaning of Internal Financial Controls
Date: 28th April 2023 Date: 28th April 2023
Controls Over Financial Reporting issued by the with reference to Standalone Financial
Institute of Chartered Accountants of India (the Statements
“Guidance Note”). These responsibilities include A Company’s Internal Financial Controls with
the design, implementation and maintenance of reference to Standalone Financial Statements is a
adequate internal financial controls that were process designed to provide reasonable assurance
operating effectively for ensuring the orderly and regarding the reliability of financial reporting and
efficient conduct of its business, including adherence the preparation of Standalone Financial Statements
to respective Company’s policies, the safeguarding for external purposes in accordance with generally
of its assets, the prevention and detection of frauds accepted accounting principles. A Company’s Internal
and errors, the accuracy and completeness of the Financial Controls with reference to Standalone
accounting records, and the timely preparation of Financial Statements includes those policies and
reliable financial information, as required under the procedures that (1) pertain to the maintenance of
Companies Act, 2013. records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets
Auditors’ Responsibility of the Company; (2) provide reasonable assurance
Our responsibility is to express an opinion on that transactions are recorded as necessary to permit
the Company’s Internal Financial Controls with preparation of Financial Statements in accordance
reference to Standalone Financial Statements of with generally accepted accounting principles, and
the Company based on our audit. We conducted that receipts and expenditures of the Company are
our audit in accordance with the Guidance Note and being made only in accordance with authorisations
the Standards on Auditing prescribed under Section of management and directors of the Company; and
143(10) of the Companies Act, 2013, to the extent (3) provide reasonable assurance regarding prevention
applicable to an audit of internal financial controls. or timely detection of unauthorised acquisition, use, or
Those Standards and the Guidance Note require that disposition of the Company’s assets that could have a
we comply with ethical requirements and plan and material effect on the Financial Statements.
perform the audit to obtain reasonable assurance
about whether adequate Internal Financial Controls Inherent Limitations of Internal Financial
with reference to Standalone Financial Statements Controls with reference to Standalone
was established and maintained and if such controls Financial Statements
operated effectively in all material respects. Because of the inherent limitations of Internal
Financial Controls with reference to Standalone
Our audit involves performing procedures to Financial Statements, including the possibility of
obtain audit evidence about the adequacy of the collusion or improper management override of
Internal Financial Controls system with reference to controls, material misstatements due to error

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Annexure “B”
2023, aggregating ₹ 3,717.10 crore were (vi) The maintenance of cost records has not been
categorised as credit impaired (“Stage 3”) specified by the Central Government under
and ₹ 4,928.18 crore were categorised as Section 148(1) of the Companies Act, 2013 for
TO THE INDEPENDENT AUDITOR’S REPORT
those where the credit risk has increased the business activities carried out by the Company.
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of significantly since initial recognition (“Stage Hence reporting under clause 3 (vi) of the Order
our report of even date to the members of Mahindra & Mahindra Financial Services Limited on the 2”). Disclosures in respect of such loans have is not applicable.
financial statements as at and for the year ended 31st March 2023) been provided in Note 62 to the standalone
financial statements. Additionally, out of loans (vii) In respect of statutory dues:
In terms of the information and explanations sought (b) According to the information and explanations and advances in the nature of loans with
by us and given by the Company and the books of given to us, the Company has been balances as at 31 st March 2023 aggregating (a) The Company has been regular in depositing
account and records examined by us in the normal sanctioned working capital limits in excess ₹ 74,124.59 crore, where credit risk has not undisputed statutory dues, including Goods
course of audit and to the best of our knowledge and of ₹ 5 crore, in aggregate, at points of time significantly increased since initial recognition and Service Tax, Provident Fund, Employees’
belief, we state that: during the year, from banks on the basis of (categorised as “Stage 1”), delinquencies State Insurance, Income-tax, Cess and other
security of loans (assets). We have observed in the repayment of principal and payment material statutory dues applicable to it, to
(i) (a) (A) The Company has maintained proper reconciliation items in the quarterly returns of interest aggregating ₹ 7,391.24 crore the appropriate authorities. As explained to
records showing full particulars, including or statements filed by the Company with such were also identified, albeit of less than us, the Company does not have any dues
quantitative details and situation of banks or financial institutions as compared 31 days. In all other cases, the repayment on account of sales tax, service tax, duty of
Property, Plant and Equipment and to the books of account maintained by the of principal and interest is regular as at customs, duty of excise and value added tax.
relevant details of right-of-use assets. Company. However, we have not carried out a 31 March 2023. Having regard to the nature
specific audit of such statements. The details of the Company’s business and the volume of There were no undisputed amounts payable in
(B) The Company has maintained proper of such differences / reconciliation items information involved, it is not practicable to respect of Goods and Service Tax, Provident
records showing full particulars of are given in note no. 17 of the standalone provide an itemised list of loan assets where Fund, Employees’ State Insurance, Income-
intangible assets. financial statements of the Company. delinquencies in the repayment of principal tax, Cess and other material statutory dues
and interest have been identified. in arrears as at 31st March 2023, for a period
(b) The Property, Plant and Equipment, were (iii) 
A s explained in note 1 to the standalone of more than six months from the date they
physically verified during the year by the financial statements, the Company is a deposit- (d) The total amount overdue for more than became payable.
management, in accordance with a regular taking non-banking financial company (“NBFC”) ninety days, in respect of loans and advances
programme of verification, which in our opinion, registered with the Reserve Bank of India (“RBI”) in the nature of loans, as at 31 st March 2023 (b) Details of dues of Income-tax, Value Added
provides for physical verification of all the and as a part of its business activities is engaged is ₹ 1,721 crore. Reasonable steps are been Tax and Service Tax Act which have not been
Property, Plant and Equipment at reasonable in the business of lending across various types of taken by the Company for recovery of the deposited as on 31 st March 2023, on account
intervals. No material discrepancies were customers which include retail and SMEs. principal and interest. of disputes are given below:
noticed on such verification.
(e) The principal business of the Company is to ₹ in crores
During the year, in the ordinary course of its
(c) Based on the examination of the documents business, the Company has made investments in, give loans and hence reporting under clause Period to
Forum where
provided to us, we report that, the title deeds provided guarantee/ security to and granted loans (iii)(e) of the Order is not applicable. Name of the Nature Amount Amount which the
dispute is
statute of dues Involved Unpaid amount
pending
of all the immovable properties (other than and advances in the nature of loans, secured and relates
immovable properties where the Company unsecured, to companies, firms, limited liability (f) The Company has not granted any loans or Income Tax Income 71.26 71.26 For FY Commissioner
is the lessee and the lease agreements are partnerships and other parties. With respect to advances in the nature of loans that were Act, 1961 Tax 2002-03; of Income Tax
2013-14; (Appeals)
duly executed in favour of the Company), such investments, guarantees / security and either repayable on demand or without 2014-15;
disclosed in the financial statements included loans and advances: specifying any terms or period of repayment. 2015-16;
2016-17;
in Property, Plant and Equipment are held in 2017-18;
the name of the Company as at the balance (a) The principal business of the Company is to (iv) The Company has not advanced loans or made 2018-19
sheet date. give loans and hence reporting under clause investments in or provided guaranty or security Andhra Value 1.24 1.24 April Andhra
(iii)(a) of the Order is not applicable; to parties covered by section 185 of the Act Pradesh VAT Added 2008- Pradesh High
and the provisions of Section 186 of the Act are Tax October Court
(d) The Company has not revalued its Property, 2013
Plant and Equipment (including Right of Use (b) 
In our opinion, having regard to the nature not applicable to the Company. Hence reporting
Madhya Value 0.09 0.06 FY Appellate
assets) and intangible assets. Accordingly, of the Company’s business, the investments under clause 3 (iv) of the Order is not applicable. Pradesh VAT Added 2013-14; Authority of
Tax 2014-15; Commercial
paragraph 3(i)(d), of the Order is not made, guarantees provided, security given 2015-16; Taxes, Bhopal
applicable to the Company. and the terms and conditions of the grant of (v) In our opinion, the Company had complied with the 2016-17
all loans and advances in the nature of loans directives issued by the Reserve Bank of India with Maharashtra Value 5.24 0.87 2010-11 Maharashtra
(e) No proceedings have been initiated during the and guarantees provided are not prejudicial regards to the deposits accepted and amounts VAT Added Sales Tax
year or are pending against the Company as to the Company’s interest; deemed to be deposits during the year. According Tax Tribunal

at 31st March 2023 for holding any benami to the information and explanations given to us, Maharashtra Value 38.26 7.08 FY Dy Comm.
VAT Added 2011-12; of Sales Tax
property under the Benami Transactions (c) 
In respect of loans and advances in the the Company being Non-banking finance company Tax 2012-13; (Appeal)
(Prohibition) Act, 1988 (as amended in 2016) nature of loans (together referred to as registered with RBI, provisions of section 73 to 76 2013-14;
2014-15;
and rules made thereunder. “loan assets”), the schedule of repayment of or any other relevant provisions of the Companies 2015-16
principal and payment of interest has been Act, 2013 & the Companies (Acceptance of
Rajasthan Value 1.16 – FY Supreme
(ii) (a) The Company is engaged primarily in lending stipulated. Note 2.5(ii) and 2.11(h) to the deposits) Rules, 2014, as amended, are not VAT Added 2007- Court
activities and consequently does not hold any standalone financial statements explains applicable. We are informed by the management Tax 2013;
2013-14;
physical inventories. Accordingly, paragraph the Company’s accounting policy relating to that no order has been passed by the Company 2014-15
3(ii)(a) of the Order is not applicable to impairment of financial assets which include Law Board, National Company Law Tribunal or Maharashtra- Service 86.92 85.24 FY CESTAT,
the Company. loans assets. In accordance with that policy, Reserve Bank of India or any Court or any other Service Tax Tax 2008- Mumbai
Tribunal against the Company in this regard. 2015
loan assets with balances as at 31st March

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Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

(viii) There were no transactions relating to previously (c) We have taken into consideration, the whistle (xvii) The Company has not incurred cash losses during as and when they fall due within a period of one
unrecorded income that were surrendered or blower complaints received by the Company the financial year covered by our audit and in the year from the balance sheet date. We, however,
disclosed as income in the tax assessments under during the year and provided to us while immediately preceding financial year. state that this is not an assurance as to the
the Income Tax Act, 1961 (43 of 1961) during determining the nature, timing and extent of future viability of the Company. We further state
the year. audit procedures. (xviii) There has been no resignation of the statutory that our reporting is based on the facts up to the
auditors of the Company during the year. Hence, date of the audit report and we neither give any
(ix) (a) The Company has not defaulted in the (xii) The Company is not a Nidhi Company and hence the provisions of clause 3(xviii) of the Order are guarantee nor any assurance that all liabilities
repayment of loans or other borrowings or reporting under clause 3(xii) of the Order is not applicable.
falling due within a period of one year from the
in the payment of interest thereon to any not applicable.
lender during the year. balance sheet date, will get discharged by the
(xix) On the basis of the financial ratios, ageing
(xiii) In our opinion, the Company is in compliance with Company as and when they fall due.
and expected dates of realisation of financial
(b) The Company has not been declared wilful Section 188 and 177 of the Companies Act, assets and payment of financial liabilities,
defaulter by any bank or financial institution 2013, where applicable, for all transactions with (xx) The Company has fully spent the required amount
other information accompanying the financial
or government or any government authority. the related parties and the details of related statements, our knowledge of the Board of towards Corporate Social Responsibility (CSR)
party transactions have been disclosed in the Directors and management plans and based on and there is no unspent CSR amount for the year
(c) 
In our opinion, term loans availed by the standalone financial statements, etc., as required our examination of the evidence supporting the requiring a transfer to a Fund specified in Schedule
Company during the year, were applied by by the applicable accounting standards. assumptions, nothing has come to our attention, VII to the Companies Act or special account in
the Company for the purposes for which the which causes us to believe that any material compliance with the provision of sub-section
loans were obtained. (xiv) (a) In our opinion and based on our examination, (6) of section 135 of the said Act. Accordingly,
uncertainty exists as on the date of the audit
the Company has an internal audit system reporting under clause 3(xx) of the Order is not
report that Company is not capable of meeting
(d) On an overall examination of the standalone commensurate with the size and nature of
its liabilities existing at the date of balance sheet applicable for the year.
financial statements of the Company, funds its business. The Company needs to enhance
raised on short-term basis have, prima facie, the coverage / scope of the internal audit in
not been used during the year for long-term certain areas.
purposes by the Company.
(b) We have taken into consideration, the reports For Mukund M. Chitale & Co. For Deloitte Haskins & Sells
(e) On an overall examination of the standalone of the Internal Auditors received by the Chartered Accountants Chartered Accountants
financial statements of the Company, the Company during the year and provided to (Firm’s Registration No. 106655W) (Firm’s Registration No. 117365W)
Company has not taken any funds from any us while determining the nature, timing and
entity or person on account of or to meet the extent of audit procedures. M. M. Chitale Rupen K. Bhatt
obligations of its subsidiaries, associates or Partner Partner
joint ventures. (xv) In our opinion, during the year the Company has (Membership No. 14054) (Membership No. 046930)
not entered into any non-cash transactions with (UDIN: 23014054BGSXGQ6278) (UDIN: 23046930BGXRJP9315)
(f) The Company has not raised any loans during its directors or persons connected with them and
the year on the pledge of securities held in hence provisions of section 192 of the Companies Place: Mumbai Place: Mumbai
its subsidiaries or joint ventures or associate Act, 2013 are not applicable to the Company. Date: 28th April 2023 Date: 28th April 2023
companies. Accordingly, paragraph 3 (ix)(f) of
the Order is not applicable. (xvi) (a) The Company is required to be registered
under section 45-IA of the Reserve Bank
(x) (a) The Company has not raised moneys by way of India Act, 1934 and it has obtained
of initial public offer or further public offer the registration.
(including debt instruments) during the year
and hence reporting under clause (x)(a) of the (b) The Company has conducted the Non-Banking
Order is not applicable. Financial activities with a valid Certificate of
Registration (CoR) from the Reserve Bank of
(b) The Company has not made preferential India (RBI) as per the Reserve Bank of India
allotment or private placement of shares Act, 1934. The Company has not conducted
or convertible debentures (fully or partly or any Housing Finance activities and is not
optionally) during the year under review and required to obtain CoR for such activities
hence reporting under clause 3(x)(b) of the from the RBI.
Order is not applicable to the Company.
(c) The Company is not a Core Investment
(xi) (a) 
To the best of our knowledge, no material Company (CIC) and hence reporting under
fraud on the Company and no fraud by the clause 3(xvi)(c) of the Order is not applicable
Company has been noticed or reported to the Company.
during the year.
(d) The Group (as defined under Master
(b) No report under sub-section (12) of section Direction DNBR. PD.008/03.10.119/2016-
143 of the Companies Act has been filed in 17 - Non-Banking Financial Company -
Form ADT-4 as prescribed under rule 13 of Systemically Important Non-Deposit taking
Companies (Audit and Auditors) Rules, 2014 Company and Deposit taking Company
with the Central Government, during the year (Reserve Bank) Directions, 2016) has more
by the Statutory Auditors and upto the date than one CIC as part of the group. There are
of this report. 4 CIC forming part of the group.

264 Empowering Emerging India INTEGRATED REPORT 2022-23 265

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Standalonest
Balance Sheet Standalone Statement of Profit and Loss
st
as at 31 March 2023 for the year ended 31 March 2023

₹ in crores ₹ in crores
As at As at Year ended Year ended
Particulars Note Particulars Note
31st March 2023 31st March 2022 31st March 2023 31st March 2022
ASSETS Revenue from operations
Financial Assets i) Interest income 24 10,682.57 9,475.61
a) Cash and cash equivalents 3 249.75 327.87 ii) Dividend income - -
b) Bank balance other than (a) above 4 2,582.31 3,822.82
iii) Rental income 72.68 26.31
c) Derivative financial instruments 5 - 26.63
d) Receivables iv) Fees and commission income 25 167.96 105.29
- Trade receivables 6 21.84 9.09 v) Net gain on fair value changes 26 5.59 50.76
e) Loans 7 79,454.73 60,444.64 I Total revenue from operations 10,928.80 9,657.97
f) Investments 8 9,988.62 8,440.27 II Other income 27 127.29 60.83
g) Other financial assets 9 1,589.28 223.13 III Total income (I+II) 11,056.09 9,718.80
93,886.53 73,294.45 Expenses
Non-financial Assets
i) Finance costs 28 4,576.72 3,920.18
a) Current tax assets (Net) 504.36 462.40
b) Deferred tax assets (Net) 10 (i) 637.24 836.42 ii) Fees and commission expense 80.24 44.91
c) Property, plant and equipment 11 681.20 383.10 iii) Impairment on financial instruments 29 999.23 2,368.30
d) Other Intangible assets 12 14.35 9.77 iv) Employee benefits expenses 30 1,584.27 1,171.40
e) Other non-financial assets 13 492.87 302.59 v) Depreciation, amortisation and impairment 31 187.23 126.83
2,330.02 1,994.28 vi) Others expenses 32 875.82 730.27
Total Assets 96,216.55 75,288.73 IV Total expenses 8,303.51 8,361.89
LIABILITIES AND EQUITY
V Profit before exceptional items and tax (III-IV) 2,752.58 1,356.91
LIABILITIES
Financial Liabilities VI Exceptional items 33 (54.51) -
a) Derivative financial instruments 14 180.70 182.22 VII Profit before tax (V+VI) 2,698.07 1,356.91
b) Payables 15 VIII Tax expense: 10 (ii)
I) Trade payables (i) Current tax 486.28 348.16
i) total outstanding dues of micro enterprises and small enterprises - - (ii) Deferred tax 227.47 20.00
ii) total outstanding dues of creditors other than micro enterprises and small 1,126.57 954.88
713.75 368.16
enterprises
II) Other payables IX Profit for the year (VII-VIII) 1,984.32 988.75
i) total outstanding dues of micro enterprises and small enterprises 2.62 3.53 X Other Comprehensive Income (OCI)
ii) total outstanding dues of creditors other than micro enterprises and small 37.12 46.87 (A) (i) Items that will not be reclassified to profit or loss
enterprises - Remeasurement gain / (loss) on defined benefit plans (17.27) (3.10)
c) Debt securities 16 24,745.07 18,252.71
d) Borrowings (Other than debt securities) 17 41,234.06 26,005.17 - Net gain / (loss) on equity instruments through OCI - 26.01
e) Deposits 18 5,524.60 8,426.19 (ii) Income tax relating to items that will not be reclassified to profit or loss 10 (iii) 4.35 (5.77)
f) Subordinated liabilities 19 3,442.13 3,129.85 Subtotal (A) (12.92) 17.14
g) Other financial liabilities 20 2,384.28 2,316.17 (B) (i) Items that will be reclassified to profit or loss
78,677.15 59,317.59 - Net gain / (loss) on debt instruments through OCI (88.82) 0.70
Non-Financial Liabilities -E ffective portion of gains and loss on designated portion of hedging (6.34) -
a) Current tax liabilities (net) 65.67 13.92
instruments in a cash flow hedge
b) Provisions 21 260.74 221.35
c) Other non-financial liabilities 22 124.08 107.78 (ii) Income tax relating to items that will be reclassified to profit or loss 10 (iii) 23.95 (0.18)
450.49 343.05 Subtotal (B) (71.20) 0.52
EQUITY 23 Other Comprehensive Income (A+B) (84.12) 17.67
a) Equity share capital 246.72 246.60 XI Total Comprehensive Income for the year (IX+X) 1,900.20 1,006.42
b) Other equity 16,842.19 15,381.49 XII Earnings per equity share (face value ₹ 2/- per equity share) 34
17,088.91 15,628.09
Basic (Rupees) 16.09 8.02
Total Liabilities and Equity 96,216.55 75,288.73
Diluted (Rupees) 16.08 8.01
The accompanying notes form an integral part of the Standalone financial statements. 1 to 65
The accompanying notes form an integral part of the Standalone financial statements. 1 to 65
In terms of our report attached.
In terms of our report attached.
For Deloitte Haskins & Sells For and on behalf of the Board of Directors
For Deloitte Haskins & Sells For and on behalf of the Board of Directors
Chartered Accountants Mahindra & Mahindra Financial Services Limited
Chartered Accountants Mahindra & Mahindra Financial Services Limited
Firm’s Registration No: 117365W
Firm’s Registration No: 117365W
Rupen K. Bhatt Dr. Anish Shah Ramesh Iyer
Rupen K. Bhatt Dr. Anish Shah Ramesh Iyer
Partner Chairman Vice-Chairman & Managing Director
Partner Chairman Vice-Chairman & Managing Director
Membership No: 046930 [DIN: 02719429] [DIN: 00220759]
Membership No: 046930 [DIN: 02719429] [DIN: 00220759]
For Mukund M. Chitale & Co. Vivek Karve Brijbala Batwal
For Mukund M. Chitale & Co. Vivek Karve Brijbala Batwal
Chartered Accountants Chief Financial Officer Company Secretary
Chartered Accountants Chief Financial Officer Company Secretary
Firm’s Registration No: 106655W Membership No: F5220
Firm’s Registration No: 106655W Membership No: F5220
M. M. Chitale
M. M. Chitale
Partner
Partner
Membership No: 14054
Membership No: 14054
Place: Mumbai Place: Mumbai
Place: Mumbai Place: Mumbai
Date: 28th April 2023 Date: 28th April 2023
Date: 28th April 2023 Date: 28th April 2023

266 Empowering Emerging India INTEGRATED REPORT 2022-23 267

 A. Equity share capital

268
₹ in crores
Particulars Amount
Issued, Subscribed and fully paid up:
Balance as at 1st April 2021 246.40
Changes due to prior period errors -
Restated balance as at 1st April 2021 246.40
Changes during the year:
st

Add: Allotment of shares by ESOS Trust to employees on exercise of options (refer note 36) 0.20

Empowering Emerging India

Standalone
Balance as at 31st March 2022 246.60
Balance as at 1st April 2022 246.60
Changes due to prior period errors -
for the year ended 31 March 2023

Restated balance as at 1st April 2022 246.60

Changes during the year:
Add: Allotment of shares by ESOS Trust to employees on exercise of options (refer note 36) 0.12
Balance as at 31st March 2023 246.72

B. Other Equity
₹ in crores
Reserves and Surplus
Statutory
reserve
as per Debt Equity
Section Capital Employee instruments instruments Effective
45-IC of redemption stock through OCI through OCI portion of
the RBI reserve Securities General options Retained (Refer note (Refer note cash flow
Particulars Act, 1934 premium reserve outstanding earnings 35) 35) hedges Total
Balance as at 1,935.35 50.00 7,137.14 797.29 42.76 4,558.40 (57.82) 1.99 – 14,465.11
1st April 2021
Changes in accounting policy/prior period errors - - - - - - - - - -
Financial Statements

Restated balance as at 1st April 2021 1,935.35 50.00 7,137.14 797.29 42.76 4,558.40 (57.82) 1.99 - 14,465.11
Profit/(loss) for the year - - - - - 988.75 - - - 988.75
Other Comprehensive Income / (loss) - - - - - (2.32) 0.52 19.47 - 17.67
Statement of Changes in Equity for

Total Comprehensive Income for the year - - - - - 986.43 0.52 19.47 - 1,006.42
Dividend paid on equity shares (including tax thereon) - - - - - (98.84) - - - (98.84)
Transfers to Securities premium on exercise of employee stock - - 17.85 - (17.85) - - - - -
options
Securities premium on shares allotted to ESOP Trust through - - 2.30 - - - - - - 2.30
Rights Issue
Employee stock options expired - - - 0.12 (0.12) - - - - -
Share based payment expense - - - - 6.50 - - - - 6.50
Transfers to Statutory reserves 198.00 - - - - (198.00) - - - -
Balance as at 31st March 2022 2,133.35 50.00 7,157.29 797.41 31.29 5,247.99 (57.30) 21.46 - 15,381.49

₹ in crores
Reserves and Surplus
Statutory
reserve
as per Debt Equity
Section Capital Employee instruments instruments Effective
45-IC of redemption stock through OCI through OCI portion of
the RBI reserve Securities General options Retained (Refer note (Refer note cash flow
Particulars Act, 1934 premium reserve outstanding earnings 35) 35) hedges Total
Balance as at 1st April 2022 2,133.35 50.00 7,157.29 797.41 31.29 5,247.99 (57.30) 21.46 - 15,381.49
Corporate

Changes in accounting policy/prior period errors - - - - - - - - - -

st

Restated balance as at 1 st April 2022 2,133.35 50.00 7,157.29 797.41 31.29 5,247.99 (57.30) 21.46 - 15,381.49
Overview & IR

Profit/(loss) for the year - - - - - 1,984.32 - - - 1,984.32

Standalone

Other Comprehensive Income / (loss) - - - - - (12.92) (66.46) - (4.74) (84.12)

Total Comprehensive Income for the year - - - - - 1,971.40 (66.46) - (4.74) 1,900.20
Report
Board’s

Dividend paid on equity shares (including tax thereon) - - - - - (444.79) - - - (444.79)

Transfers to Securities premium on exercise of employee stock - - 11.18 - (11.18) - - - - -
for the year ended 31 March 2023

options
Securities premium on transfer of ESOP Shares to employees - - 1.57 - - - - - - 1.57
Employee stock options expired - - - 0.54 (0.54) - - - - -
Share based payment expense - - - - 3.72 - - - - 3.72
Transfers to Statutory reserves 398.00 - - - - (398.00) - - - -
Analysis

Balance as at 31st March 2023 2,531.35 50.00 7,170.04 797.94 23.30 6,376.60 (123.76) 21.46 (4.74) 16,842.19
Management
Discussion and

The accompanying notes 1 to 65 form an integral part of the Standalone financial statements.
In terms of our report attached.
For Deloitte Haskins & Sells For and on behalf of the Board of Directors
Chartered Accountants Mahindra & Mahindra Financial Services Limited
Report on
Corporate
Governance

Firm’s Registration No: 117365W

Rupen K. Bhatt Dr. Anish Shah Ramesh Iyer

Partner Chairman Vice-Chairman & Managing Director
Membership No: 046930 [DIN: 02719429] [DIN: 00220759]
Report
Business

For Mukund M. Chitale & Co. Vivek Karve Brijbala Batwal

Chartered Accountants Chief Financial Officer Company Secretary
Responsibility

Firm’s Registration No: 106655W Membership No: F5220

Financial Statements
& Sustainability

M. M. Chitale
Partner
Statement of Changes in Equity for

Membership No: 14054

Financial

Place: Mumbai Place: Mumbai

Standalone

Statements

Date: 28th April 2023 Date: 28th April 2023

C

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

269
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Statement of Standalone Cash Flows

st
Statement of Standalone Cash Flows
st
for the year ended 31 March 2023 for the year ended 31 March 2023

₹ in crores ₹ in crores
Year ended Year ended Year ended Year ended
Particulars Particulars
31st March 2023 31st March 2022 31st March 2023 31st March 2022
A) CASH FLOW FROM OPERATING ACTIVITIES C) CASH FLOW FROM FINANCING ACTIVITIES
Profit before exceptional items and taxes 2,752.58 1,356.91 Proceeds from borrowings through Debt Securities 16,501.95 6,425.50
Adjustments for: Repayment of borrowings through Debt Securities (10,005.95) (5,019.80)
Depreciation, amortisation and impairment 187.23 126.83 Proceeds from Borrowings (Other than Debt Securities) 33,521.08 39,444.31
Impairment on financial instruments (excluding bad debts and write offs) (1,214.13) (144.77) Repayment of Borrowings (Other than Debt Securities) (18,362.66) (42,505.96)
Bad debts and write offs 2,213.36 2,513.07 Proceeds from borrowings through Subordinated Liabilities 380.00 132.91
Interest expense 4,535.85 3,866.50 Repayment of borrowings through Subordinated Liabilities (70.01) (155.16)
Interest income from loans (9,949.25) (8,909.59) (Decrease) / Increase in loans repayable on demand and cash credit/overdraft facilities 169.97 –
Interest income from other deposits with banks (210.08) (181.36) with banks (net)
Net (Gain) / loss on fair value of derivative financial instruments (10.77) 7.99 Increase / (decrease) in Public deposits (net) (2,905.23) (1,034.09)
Unrealised foreign exchange gain/loss (96.85) (90.38) Payments for principal portion of lease liability (56.80) (44.14)
Share based payments to employees 4.55 9.20 Dividend paid (444.79) (98.84)
Net gain on fair value changes 26.74 (11.70) NET CASH GENERATED FROM / (USED IN) FINANCING ACTIVITIES (C) 18,727.56 (2,855.27)
Interest income on investments (523.24) (384.66) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (78.12) (242.71)
Dividend income (4.12) (2.47) CASH AND CASH EQUIVALENTS AT THE BEGINING OF THE YEAR 327.87 570.58
Net gain on derecognition of property, plant and equipment (2.89) (1.27) CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 249.75 327.87
Net (gain) / loss on sale of investments (5.59) 64.80 Components of Cash and Cash Equivalents
Operating profit / (loss) before working capital changes (2,296.61) (1,780.90) Cash and cash equivalents at the end of the year
Adjustments for changes in working capital - - Cash on hand 32.91 40.58
Loans (21,125.42) (4,610.88) - Cheques and drafts on hand 17.65 36.30
Trade receivables (11.71) (0.43) - Balances with banks in current accounts 199.19 250.99
Other financial assets (129.52) (8.92) Total 249.75 327.87
Other financial liabilities 31.78 125.09
Other non-financial assets (107.16) (11.08) Notes:
Trade Payables 161.03 362.19 1) The above Statement of Standalone Cash Flow has been prepared under the 'Indirect method' as set out in Ind AS 7 on
Other non-financial liabilities 16.30 8.88 'Statement of Cash Flows'.
Derivative financial instruments 35.88 0.14 2) Purchase of Property, plant and equipment and intangible assets represents additions to Property, plant and equipment
Provisions 21.87 4.35 and intangible assets adjusted for movement of capital-work-in-progress during the year.

Cash generated from / (used in) operations before adjustments for interest
(23,403.57) (5,911.56)
received and interest paid
Interest paid (4,668.87) (4,234.25)
Interest received from loans 11,063.93 10,654.89
Cash generated from / (used in) operations (17,008.51) 509.08 In terms of our report attached.
Income taxes paid (net of refunds) (476.49) (509.40)
For Deloitte Haskins & Sells
NET CASH GENERATED FROM / (USED IN) OPERATING ACTIVITIES (A) (17,485.00) (0.32)
Chartered Accountants For and on behalf of the Board of Directors
B) CASH FLOW FROM INVESTING ACTIVITIES Firm’s Registration No: 117365W Mahindra & Mahindra Financial Services Limited
Purchase of Property, plant and equipment and intangible assets (362.55) (275.45)
Proceeds from sale of Property, plant and equipment 13.55 5.26 Rupen K. Bhatt Dr. Anish Shah Ramesh Iyer
Purchase of investments measured at amortised cost (400.42) (223.76) Partner Chairman Vice-Chairman & Managing Director
Proceeds from sale of investments measured at amortised cost 496.35 77.44 Membership No: 046930 [DIN: 02719429] [DIN: 00220759]
(Increase) / decrease in Investment in Triparty Repo Dealing System (TREPS) (net) – 2,404.00 For Mukund M. Chitale & Co. Vivek Karve Brijbala Batwal
Purchase of investments measured at FVOCI (915.95) (17.75) Chartered Accountants Chief Financial Officer Company Secretary
Proceeds from sale of investments measured at FVOCI 345.34 39.06 Firm’s Registration No: 106655W Membership No: F5220
Purchase of investments measured at FVTPL (4,404.44) (9,939.03)
M. M. Chitale
Proceeds from sale of investments measured at FVTPL 3,177.54 10,941.90
Partner
Purchase of investments measured at cost (0.00) (33.99)
Membership No: 14054
Proceeds from / (Investments in) term deposits with banks (net) (8.44) (871.82)
Place: Mumbai Place: Mumbai
Dividend income received 4.12 2.47 Date: 28th April 2023 Date: 28th April 2023
Interest received from other deposits with banks 221.59 128.74
 Interest income received on investments measured at amortised cost, FVOCI, FVTPL
512.64 375.78
and at cost
Change in Earmarked balances with banks (0.02) 0.02
NET CASH GENERATED FROM / (USED IN) IN INVESTING ACTIVITIES (B) (1,320.68) 2,612.88

270 Empowering Emerging India INTEGRATED REPORT 2022-23 271

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

1 COMPANY INFORMATION Any application guidance / clarifications / application of the Company’s accounting interdependencies. Elements of the ECL
Mahindra & Mahindra Financial Services directions / expectations issued by RBI or policies and the reported amounts of model that are considered accounting
Limited (‘the Company’) with Corporate ID No.: other regulators are implemented as and assets, liabilities, income, expenses and the judgements and estimates include:
L65921MH1991PLC059642, incorporated on when they are issued/ applicable. disclosures of contingent liabilities. Actual
results may differ from these estimates. • The Company’s criteria for assessing if
1 January 1991 and domiciled in India, is a public there has been a significant increase
Accounting policies have been consistently Estimates and underlying assumptions are
limited company, headquartered in Mumbai. The applied except where a newly-issued accounting in credit risk
reviewed on an ongoing basis. Revisions of
Company is a Non-Banking Financial Company standard is initially adopted or a revision to an estimates are recognised prospectively. • The segmentation of financial assets
(‘NBFC’), primarily engaged in financing new existing accounting standard requires a change when their ECL is a ssessed on a
and pre-owned auto, utility vehicles, tractors, in the accounting policy hitherto in use. The key assumptions concerning the collective basis
passenger cars and commercial vehicles through future and other key sources of estimation
its pan India branch network. The Company These standalone or separate financial • Development of ECL model, including
uncertainty at the reporting date, that
has a diversified lending portfolio across retail, statements have been approved by the the various formulae and the choice
have a significant risk of causing a material
small and medium enterprises and commercial Company's Board of Directors and authorised of inputs
adjustment to the carrying amounts of assets
customers with a significant presence in rural and for issue on 28 April 2023. and liabilities within the next financial year, • Selection of for ward-looking
semi-urban India. are described below. The Company based its macroeconomic scenarios and their
2.2 Functional and presentation currency assumptions and estimates on parameters probabilit y weight s, to derive the
The Company is registered as a Systemically These financial statements are presented in available when the financial statements economic inputs into the ECL model
Important Deposit Accepting NBFC as defined Indian Rupees ('INR' or '₹') which is also the were issued. Existing circumstances and • Management overlay, if any, used in
under Section 45-IA of the Reserve Bank Company's functional currency. All amounts assumptions about future developments, circumstances where management
of India (‘RBI’) Act, 1934 with effect from are rounded-off to the nearest crore, unless however, may change due to market changes ju dge s t hat t h e e x i s t ing inp u t s ,
4 September 1998, with registration no. indicated otherwise. or circumstances arising that are beyond the assumptions and model techniques
13.00996 and classified as NBFC-Investment and control of the Company. Such changes are do not capture all the risk factors
Credit Company (NBFC-ICC) pursuant to circular 2.3 Basis of measurement reflected in the assumptions when they occur. relevant to the Company's lending
DNBR (PD) CC.No.097/03.10.001/2018-19 The financial statements have been prepared portfolios.
dated 22 February 2019. The equity shares of Following are areas that involved a higher
on a historical cost convention and on an
the Company are listed on the National Stock degree of estimate and judgement or It has been the Company’s policy to
accrual basis, except for certain financial
Exchange of India Limited ("NSE") and the complexity in determining the carrying regularly review its model in the context
instruments which are measured at fair
BSE Limited ("BSE") in India. The Company is a amount of some assets and liabilities. of actual loss experience and adjust
values as required by relevant Ind AS.
subsidiary of Mahindra & Mahindra Limited. when necessary (refer note 49).
i) Effective Interest Rate (EIR) Method:
2.4 Measurement of fair values
The Company's registered office is at Gateway The Company recognises interest iii) Provisions and contingent liabilities:
Building, Apollo Bunder, Mumbai 400001, India. The Company's certain accounting policies income / expense using a rate of return
and disclosures require the measurement The Company does not recognise a
that represents the best estimate of
of fair values, for both financial and non- contingent liability but discloses its
2 SUMMARY OF SIGNIFICANT ACCOUNTING a constant rate of return over the
financial assets and liabilities. The Company existence in the financial statements.
POLICIES expected life of the loans given / taken.
has established policies and procedures with This estimation, by nature, requires an
2.1 Statement of compliance and basis for Contingent assets are neither recognised
respect to the measurement of fair values. element of judgement regarding the
preparation and presentation of financial nor disclosed in the financial statements.
Fair values are categorised into different levels expected behaviour and life-cycle of
statements However, contingent assets are assessed
in a fair value hierarchy based on the inputs the instruments, as well as expected continually and if it is virtually certain
'These standalone or separate financial used in the valuation techniques as follows: changes to other fee income/expense that an inflow of economic benefits will
statements of the Company have been that are integral parts of the instrument.
• Level 1: Quoted prices (unadjusted) in arise, the asset and related income are
prepared in accordance with the Indian
active markets for identical assets and recognised in the period in which the
Accounting Standards ("Ind AS") as per the ii) Impairment of Financial Assets:
liabilities. change occurs. Contingent Liabilities
Companies (Indian Accounting Standards) The measurement of impairment losses in respect of show cause notices
Rules, 2015 as amended and notified under • Level 2: Inputs other than quoted prices on loan assets and commitments,
included in Level 1 that are observable are considered only when converted
section 133 of the Companies Act, 2013 requires judgement, in estimating the into demands.
(“the Act”), and is in conformity with the for the asset or liability, either directly amount and timing of future cash flows
accounting principles generally accepted in or indirectly. and recoverability of collateral values The reliable measure of the estimates
India and other relevant provisions of the • Level 3: Inputs for the asset or liability that while determining the impairment losses and judgments pertaining to litigations
Act. Further, the Company has complied with are not based on observable market data and assessing a significant increase in and the regulatory proceedings
all the directions related to Implementation (unobservable inputs). credit risk. in the ordinary course of the
of Indian Accounting Standards prescribed Company’s business are disclosed as
for Non-Banking Financial Companies 2.5 Use of estimates and judgements and The Company’s Expected Credit Loss contingent liabilities.
Estimation uncertainty (ECL) calculation is the output of
(NBFCs) in accordance with the RBI
a complex model with a number of 
Estimates and judgements are
notification no. RBI/2019-20/170 DOR In preparing these financial statements,
underlying assumptions regarding the continually evaluated and are based on
NBFC).CC.PD.No.109/22.10.106/2019-20 management has made judgements,
choice of variable inputs and their historical experience and other factors,
dated 13 March 2020. estimates and assumptions that affect the

272 Empowering Emerging India INTEGRATED REPORT 2022-23 273

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

including expectations of future events Economic forecasts are still subject to a • t h e i d e n t i f i c at i o n o f cu s t o m e r s underlying assumptions are also subject
that may have a financial impact on the varied degree of uncertainty in the current experiencing signif icant increases to uncertainties which are often outside
Company and that are believed to be environment which directly / indirectly in credit risk and credit impairment, the control of the Company. Accordingly,
reasonable under the circumstances. linked to long lasting disruptions caused particularly where those customers actual economic conditions are likely
by outbreak of COVID-19. Limitations of have accepted payment deferral s to be different from those forecast
iv) Provision for income tax and forecasts and economic models require and other reliefs designed to address since anticipated events frequently do
deferred tax assets: a greater reliance on management shor t-ter m l iqu idit y is sue s given not occur as expected, and the effect
The Company uses estimates and judgement in addressing both the error muted default experience to date. of those differences may significantly
judgements based on the relevant rulings inherent in economic forecasts and in impact accounting estimates included in
in the areas of allocation of revenue, assessing associated ECL outcomes. Judgements (including overlays, if any) these financial statements.
costs, allowances and disallowances in relation to credit impairments and the
which is exercised while determining the The calculation of ECL under Ind AS impact of macro-economic risks on the The significant accounting estimates
provision for income tax, including the 109 involves significant judgements, credit environment, including those long impacted by these forecasts and associated
amount expected to be paid / recovered assumptions and estimates. The level of lasting adverse impact arising from the uncertainties are predominantly related
for uncertain tax positions. A deferred estimation uncertainty and judgement is COVID-19 pandemic, are continuously to expected credit losses, fair value
tax asset is recognised to the extent moderately low during financial year due subjected to review throughout the measurement, and recoverable amount
that it is probable that future taxable to the curtailed impact of the pandemic year. The management focused on the assessments of non-financial assets.
profit will be available against which spread, including significant judgements key assumption, methodologies and
relating to: in-model and post model adjustments vii) Going Concern:
the deductible temporary differences
and tax losses, if any, can be utilised. applied to provisions under Ind AS Although COVID 19 has had an adverse
• t h e s e l e c t i o n a n d we ig h t a ge o f 109. The economic uncertainty impact on the functioning of the financial
Accordingly, the Company exercises
economic scenarios, given rapidly and unprecedented conditions not sector companies until the year ended
its judgement to reassess the carrying
changing economic conditions in an experienced since the implementation 31 st March 2022, the financial statements
amount of deferred tax assets at the
unprecedented manner, uncertainty of Ind AS 109 challenged the usefulness of the Company are prepared on a
end of each reporting period.
as to the effect of government and of model outputs. While the use of going concern basis for the year ended
v) Defined Benefit Plans: RBI support measures designed to judgemental overlays and post-model 31 st March 2023.
alleviate adverse economic impacts, adjustments should ideally be limited,
The cost of the defined benefit gratuity
and a wider distribution of economic their use was considered necessary, Management is of the view that it is
plan and the present value of the gratuity
forecasts than before the pandemic. where applicable, during the financial considered appropriate to prepare
obligation are determined using actuarial
The key judgements are the length year, and might likely to continue to be these financial statements on a going
valuations. An actuarial valuation involves
of time over which the economic required in future reporting periods. concern basis as the Company expects
making various assumptions that may
effects of the pandemic would occur, to generate sufficient cash flows from
differ from actual developments in the
the speed and shape of spread and As a result of government and bank operating activities and unused lines
future. These include the determination
recovery. The main factors include support / relief measures implemented of credit to meet its obligations in the
of the discount rate, future salary
the ef fec tiveness of pandemic during previous years, significant credit foreseeable future (refer note 49 and
increases and mortality rates. Due to the
containment measures, effectiveness deterioration has not yet occurred. note 49.3).
complexities involved in the valuation
of vaccines, and the emergence of This delay increases uncertainty on the
and its long-term nature, a defined 2.6 Revenue recognition:
new variants of the virus, plus a range timing of the stress and the realisation
benefit obligation is sensitive to changes
of geopolitical uncertainties, which of defaults. Management has applied a) Recognition of interest income on
in these assumptions. All assumptions
together may represent a high degree certain parameter driven adjustments loans:
are reviewed at each reporting date.
of estimation uncertainty, particularly to modelled outputs to reflect the 
Interest income is recognised in
vi) Estimation uncertainty relating to in assessing worst case scenario; uncertainty in relation to the timing Statement of profit and loss using the
the global health pandemic from • estimating the economic effects on of stress and the degree to which effective interest method for all financial
COVID-19 and current Macro- the scenarios on ECL, though the economic consensus has yet captured instruments measured at amortised
economic scenario: historical trends now include a little the range of economic uncertainty. cost, debt instruments measured at
histor y post the outbreak of the As a result, ECL is higher than would be FVOCI and debt instruments designated
The COVID-19 outbreak and its effect
pandemic that can be reflected in the the case if it were based on the forecast at FVTPL. The ‘effective interest rate’
on the economy has impacted our
models to represent the effects of the economic scenarios alone. is the rate that exactly discounts
customers and our performance during
the prior years until the year ended economic changes of the severity and estimated future cash payments or
The Company has developed various
31 st March 2022, though the pandemic's speed brought about by the COVID-19 receipts through the expected life of the
accounting estimates in these Financial
spread remains curtailed by the roll out outbreak. Modelled assumptions and financial instrument.
Statements based on forecasts of
of vaccines throughout the world and linkages between economic factors
economic conditions which reflect The calculation of the effective interest
as a result the economies around the and credit losses may underestimate
expectations and assumptions as at rate includes transaction costs and fees
world have returned to normalcy which or overestimate ECL in these
31 st March 2023 about future events that are an integral part of the contract.
had a favourable impact on business and conditions, and there is signif icant
that the management believe are Transaction costs include incremental
financial performance of the Company uncer t aint y in the e s timation of
reasonable in the circumstances. There costs that are directly attributable to
during the current financial year ended parameters such as collateral values
is a considerable degree of judgement the acquisition of financial asset.
31 st March 2023. and loss severity; and
involved in preparing forecasts. The

274 Empowering Emerging India INTEGRATED REPORT 2022-23 275

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023


If expectations regarding the cash that will be incurred on the transferred e) Fees, charges and commission income: specified in Schedule II to the Companies
flows on the financial asset are revised loan receivables to the extent of the 
Fee based income are recognised Act, 2013 on a pro-rata basis subject to
for reasons other than credit risk, the credit enhancement provided. when they become measurable and exceptions listed here below. Depreciation
adjustment is recorded as a positive or when it is probable to expect their methods, useful lives and residual values are
negative adjustment to the carrying In view of the above, the Company has reviewed in each financial year, and changes,
ultimate collection.
amount of the asset in the balance sheet retained substantially all the risks and if any, are accounted for prospectively.
with an increase or reduction in interest rewards of ownership of the financial 
Commission and brokerage income
income. The adjustment is subsequently asset and thereby does not meet the earned for the services rendered are In accordance with Ind AS 116 - Leases, the
amortised through interest income in the de-recognition criteria as set out in Ind recognised as and when they are due. Right-Of-Use assets (Leasehold premises)
Statement of profit and loss. AS 109. Consideration received in this are initially recognised at cost which
transaction is presented as "Associated f) Dividend and interest income on comprises of initial amount of lease liability
The Company calculates interest income liability related to Securitisation investments: adjusted for any lease payments made at or
by applying the EIR to the gross carrying transactions" and the loan receivables • Dividends
 are recognised in Statement prior to the commencement date of the lease
amount of financial assets other than securitised are continued to be reflected of profit and loss only when the right plus any initial direct costs less any lease
credit-impaired assets. as loan assets. These loan assets are to receive payment is established, it is incentives. These are subsequently measured
carried at amortised cost and the interest probable that the economic benefits at cost less accumulated depreciation and
When a financial asset becomes credit- income is recognised by applying the EIR impairment losses, if any. Right-Of-Use
associated with the dividend will flow
impaired, the Company calculates to the gross carrying amount of financial assets (Leasehold premises) are depreciated
to the Company and the amount of
interest income by applying the effective assets other than credit-impaired assets. from the commencement date on a straight-
the dividend can be measured reliably.
interest rate to the net amortised cost of line basis over the shorter of the lease term
the financial asset. If the financial asset When a financial asset becomes credit- • Interest
 income from investments
and useful life of the underlying asset.
cures and is no longer credit-impaired, the impaired, the Company calculates is recognised when it is certain that
Company reverts to calculating interest interest income by applying the effective the economic benefits will flow to the The estimated useful lives used for
income on a gross basis. interest rate to the net amortised cost of Company and the amount of income computation of depreciation are as follows:
the financial asset. If the financial asset can be measured reliably. Interest

Additional interest and interest on cures and is no longer credit-impaired, income is accrued on a time basis, by
Buildings 60 years
trade advances, are recognised when the Company reverts to calculating reference to the principal outstanding
they become measurable and when and at the effective interest rate Computers and Data 3 to 6 years
interest income on a gross basis. processing units
it is not unreasonable to expect their applicable.
ultimate collection. c) Subvention income: Furniture and fixtures 10 years
2.7 Property, Plant and Equipments (PPE): Office equipments 5 years

Subvention income received from
Income from bill discounting is recognised Vehicles 8 years and 10 years
manufacturer / dealers at the inception PPE are stated at cost of acquisition (including
over the tenure of the instrument so as to
of the loan contracts which is directly incidental expenses), less accumulated Vehicles under lease Over the lease term
provide a constant periodic rate of return. of the respective
attributable to individual loan contracts depreciation and accumulated impairment
in respect of vehicles financed is loss, if any. agreements
b) Recognition of interest income on
recognised in the Statement of profit and Right-Of-Use assets Over the lease term
securitised loans:
loss using the effective interest method Cost of acquisition consists of purchase price (Leasehold premises) of the respective
The Company securitises certain pools or construction cost which is the amount paid agreements
over the tenor of such loan contracts
of loan receivables in accordance and the fair value of any other consideration
measured at amortised cost.
with applicable RBI guidelines. The issued, if any, to acquire the asset. Exceptions to useful lives specified in
Company, being Originator of these loan In case of subvention income which Schedule II to the Companies Act, 2013 -
receivables, also acts as Servicer with a is subject to confirmation from 
Advances paid towards the acquisition of
responsibility of collection of receivables manufacturer and received later than PPE outstanding at each balance sheet date - A
 ssets costing less than ₹ 5000/- are fully
from its borrowers and depositing the inception date is recognised in the are disclosed separately under other non- depreciated in the period of purchase.
same in Collection and Pay-out Account Statement of profit and loss using financial assets. Capital work in progress
maintained by the SPV Trust for making comprises the cost of PPE that are not ready - Vehicles provided to employees as part of
straight line method over the tenor of
scheduled pay-outs to the investors in for its intended use at the reporting date. Cost-To-Company (CTC) scheme are
such loan contracts.
Pass Though Certificates (PTCs) issued Capital work-in-progress is stated at cost, depreciated using estimated useful life of
by the SPV Trust. These securitisation d) Rental Income: net of impairment loss, if any. 4 years.
transactions also requires the 
Income from operating leases is
Subsequent expenditure is recognised as an PPE is derecognised on disposal or when no
Company to provide for first loss credit recognised in the Statement of profit
increase in the carrying amount of the asset future economic benefits are expected from
enhancement in various forms, such as and loss on a straight-line basis
when it is probable that future economic its use. Assets retired from active use and
corporate guarantee, cash collateral, over the lease term. In certain lease
benefits deriving from the cost incurred will held for disposal are generally stated at the
subscription to subordinated PTCs as arrangements, variable rental charges
flow to the enterprise and the cost of the lower of their carrying amount & fair value
credit support in the event of shortfall are also recognised over and above
item can be measured. less costs to sell. Any gain or loss arising on
in collections from underlying loan minimum commitment charges based derecognition of the asset (calculated as the
contracts. By virtue of existence of credit on usage pattern and make/model of Depreciation on PPE is provided on straight- difference between the net disposal proceeds
enhancement, the Company is exposed the asset. line basis in accordance with the useful lives and the net carrying amount of the asset) is
to credit risk, being the expected losses

276 Empowering Emerging India INTEGRATED REPORT 2022-23 277

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial st
Statements
for the year ended 31 March 2023 for the year ended 31 March 2023

recognised in other income / netted off from exchange rates between the reporting assets and financial liabilities (other than some of its equity instruments at
any loss on disposal in the Statement of profit currency and a foreign currency on the financial assets and financial liabilities at FVOCI, when such instruments meet
and loss in the year the asset is derecognised. transaction date. FVTPL) are added to or deducted from the definition of Equity under Ind AS
the fair value of the financial assets or 32 Financial Instruments and are
2.8 Intangible assets: b) Translation: financial liabilities, as appropriate, on initial not held for trading.
Intangible assets are stated at cost less Transactions in foreign currencies are recognition. Transaction costs directly
accumulated amortisation and accumulated translated into the functional currency attributable to the acquisition of financial If the Company elects to classify
impairment loss, if any. using the exchange rates at the dates assets or financial liabilities at FVTPL are an equity instrument as at FVTOCI,
of the transactions. Foreign exchange recognised immediately in Statement of then all fair value changes on the
Subsequent expenditure is capitalised only gains and losses resulting from the profit and loss. instrument, excluding dividends, are
when it increases the future economic settlement of such transactions and recognised in other comprehensive
benefits embodied in the specific asset to from the translation of monetary assets b) Classification and Subsequent income. This cumulative gain or
which it relates. All other expenditure is and liabilities denominated in foreign measurement of financial assets: loss is not reclassified to statement
recognised in profit or loss as incurred. currencies at year end exchange rates On initial recognition, a financial of profit and loss on disposal of
are recognised in Statement of profit asset is classified as measured at such instruments. Investments
Intangible assets comprises of computer representing equity interest
and loss.
software. The amortisation period is lower • Amortised cost; in subsidiary, joint venture and
of license period or 36 months which is Foreign exchange differences regarded • FVOCI - debt instruments; associate are carried at cost less
based on management’s estimates of useful as an adjustment to borrowing costs any provision for impairment.
• FVOCI - equity instruments;
life. Amortisation is calculated using the are presented in the statement of profit
straight line method to write down the cost • FVTPL Financial assets are not reclassified
and loss, within finance costs. All other
of intangible assets over their amortisation foreign exchange gains and losses are subsequent to their initial
period. Amortisation methods, useful Amortised cost - recognition, except if and in the
presented in the Statement of profit and
lives and residual values are reviewed in loss on a net basis. The Company’s business model is period the Company changes its
each financial year, and changes, if any, are not assessed on an instrument-by- business model for managing
accounted for prospectively. Non-monetary items that are measured instrument basis, but at a higher financial assets.
at fair value in a foreign currency are level of aggregated portfolios

An intangible asset is derecognised on translated using the exchange rates being the level at which they are All financial assets not classified
disposal, or when no future economic benefits at the date when the fair value was managed. The financial asset is held as measured at amortised cost or
are expected from use or disposal. Gains determined. Translation differences on within a business model of collecting FVOCI are measured at FVTPL. This
or losses arising from derecognition of an assets and liabilities carried at fair value contractual cash flows as per the includes all derivative financial assets
intangible asset, measured as the difference are reported as part of the fair value contractual terms that give rise on unless designated as effective hedge
between the net disposal proceeds and the gain or loss. Thus, translation differences specified dates to cash flows that instrument which are accounted as
carrying amount of the asset are recognised on non- monetary assets and liabilities are solely payment of principal and per hedge accounting requirements
in the Statement of Profit and Loss when the such as equity instruments held at interest (‘SPPI’) on the principal discussed below.
asset is derecognised. fair value through profit or loss are amount outstanding. Accordingly, the

Subsequent measurement of
recognised in profit or loss as part of Company measures Bank balances,
2.9 Investments in subsidiaries, associate and financial assets -
the fair value gain or loss and translation Loans, Trade receivables and other
joint ventures: 
Financial assets at amortised
differences on non-monetary assets financial instruments that meet the

Investments in subsidiaries, associate and such as equity investments classified SPPI criterion at amortised cost. cost are subsequently measured
joint ventures are measured at cost less as FVOCI are recognised in other at amortised cost using effective
accumulated impairment, if any. comprehensive income. FVOCI - debt instruments - interest method. The amortised cost
The Company measures its debt is reduced by impairment losses.
The Company reviews the carrying amounts Non-monetary items that are measured Interest income, and impairment
instruments at FVOCI when the
of its investments in subsidiaries, associate at historical cost in foreign currency are provisions are recognised in
instrument is held within a business
and joint ventures at the end of each not retranslated at reporting date. Statement of profit and loss. Any
model, the objective of which
reporting period, to determine whether there gain and loss on derecognition is
is achieved by both collecting
is any indication that those investments have 2.11 Financial instruments: recognised in Statement of profit
contractual cash flows and selling
impaired. If any such indication exists, the a) Initial Recognition: and loss.
financial assets; and the contractual
recoverable amount of the investment is
Financial assets and financial liabilities terms of the financial asset meet
estimated in order to determine the extent 
Debt investment at FVOCI are
are recognised when the Company the SPPI test.
of the impairment loss (if any). subsequently measured at fair value.
becomes a party to the contractual
FVOCI - equity instruments - Interest income at coupon rate and
2.10 Foreign exchange transactions and provisions of the instruments.
impairment provision, if any, are
translations: The Company subsequently
Financial assets and financial liabilities are recognised in Statement of profit
measures all equity investments
a) Initial recognition: initially recognised at fair value. Transaction and loss. Net gains or losses on
at fair value through profit or loss,

Transactions in foreign currencies costs that are directly attributable fair valuation are recognised in OCI.
unless the Company’s management
are recognised at the prevailing to the acquisition or issue of financial On derecognition, gains and losses
has elected to classify irrevocably

278 Empowering Emerging India INTEGRATED REPORT 2022-23 279

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

accumulated in OCI are reclassified equity transaction are recognised as a transaction in which substantially all interest rate swaps, to manage
to Statement of profit and loss. a deduction from equity. of the risks and rewards of ownership its borrowing exposure to foreign
of the financial asset are transferred exchange and interest rate risks.

For equity investments, the Financial liabilities - or in which the Company neither
Company makes an election on an 
Derivatives embedded in non-
Financial liabilities are classified transfers nor retains substantially all
instrument-by-instrument basis to derivative host contracts are treated
and measured at amortised cost of the risks and rewards of ownership
designate equity investments as as separate derivatives when their
or FVTPL. A financial liability and does not retain control of the
measured at FVOCI. These elected risks and characteristics are not
is classified as at FVTPL if it is financial asset.
investments are measured at closely related to those of the host
classified as held-for-trading or it
fair value with gains and losses 
If the Company enters into contracts and the host contracts
is a derivative (that does not meet
arising from changes in fair value transactions whereby it transfers are not measured at FVTPL.
hedge accounting requirements)
recognised in other comprehensive or it is designated as such on initial assets recognised on its balance sheet, 
Derivatives are initially recognised
income and accumulated in the recognition. Other financial liabilities but retains either all or substantially at fair value at the date the
reserves. The cumulative gain or are subsequently measured at all of the risks and rewards of the contracts are entered into and
loss is not reclassified to Statement amortised cost using the effective transferred assets, the transferred are subsequently remeasured to
of profit and loss on disposal of the interest method. Interest expense assets are not derecognised. their fair value at the end of each
investments. These investments and foreign exchange gains and reporting period. The resulting gain/
in equity are not held for trading. Financial liabilities:
losses are recognised in Statement loss is recognised in Statement of
Instead, they are held for strategic of profit and loss. Any gain or loss A financial liability is derecognised when profit and loss immediately unless
purpose. Dividend income received on derecognition is also recognised the obligation in respect of the liability the derivative is designated and
on such equity investments are in Statement of profit and loss. is discharged, cancelled or expires. effective as a hedging instrument,
recognised in Statement of profit The difference between the carrying in which event the timing of the
and loss. d) Financial guarantee contracts: value of the financial liability and the recognition in profit or loss depends
A financial guarantee contract is consideration paid is recognised in on the nature of the hedging
Equity investments that are not Statement of profit and loss.
a contract that requires the issuer relationship and the nature of the
designated as measured at FVOCI
to make specified payments to hedged item.
are designated as measured at The Company also derecognises a
reimburse the holder for a loss it
FVTPL and subsequent changes financial liability when its terms are The Company designates certain
incurs because a specified debtor
in fair value are recognised in modified and the cash flows under hedging instruments, which include
fails to make payments when due
Statement of profit and loss. the modified terms are substantially derivatives in respect of foreign
in accordance with the terms of a
different. In this case, a new financial currency risk, as either fair value

Financial assets at FVTPL are debt instrument.
liability based on the modified terms hedges or cash flow hedges. Hedges
subsequently measured at fair is recognised at fair value. of foreign exchange risk on firm

Financial guarantee contracts
value. Net gains and losses, including commitments are accounted for as
issued by a Company are initially
any interest or dividend income, are f) Offsetting: cash flow hedges.
measured at their fair values and,
recognised in Statement of profit Financial assets and financial
if not designated as at FVTPL, are 
At the inception of the hedge
and loss. liabilities are offset and the net
subsequently measured at the relationship, the Company
higher of: amount presented in the balance
c) Financial liabilities and equity documents the relationship
sheet when, and only when, the
instruments: between the hedging instrument
• the amount of loss allowance Company currently has a legally
Classification as debt or equity - and the hedged item, along with its
determined in accordance with enforceable right to set off the
risk management objectives and its
Debt and equity instruments issued impairment requirements of Ind AS amounts and it intends either to
strategy for undertaking various
by the Company are classified as 109 - Financial Instruments; and settle them on a net basis or to
hedge transactions. Furthermore,
either financial liabilities or as equity • the amount initially recognised realise the asset and settle the
at the inception of the hedge and
in accordance with the substance of less, when appropriate, the liability simultaneously.
on an ongoing basis, the Company
the contractual arrangements and cu mul at ive a mou nt of income The legally enforceable right must not documents whether the hedging
the definitions of a financial liability recognised in accordance with the be contingent on future events and instrument is highly effective in
and an equity instrument. principles of Ind AS 115 Revenue must be enforceable in the normal offsetting changes in fair values
from Contracts with Customers. course of business and in the event or cash flows of the hedged item
Equity instruments -
of default, insolvency or bankruptcy attributable to the hedged risk.
An equity instrument is any contract e) Derecognition: of the group or the counterparty.
that evidences a residual interest 
Changes in fair value of the
Financial assets:
in the assets of an entity after g) Derivative financial instruments designated portion of derivatives
deducting all of its liabilities. Equity The Company derecognises a financial
and hedge accounting: that qualify as fair value hedges
instruments issued by Company asset when the contractual rights to
The Company enters into derivative are recognised in profit or loss
are recognised at the proceeds the cash flows from the financial asset
financial instruments, primarily immediately, together with any
received. Transaction costs of an expire, or it transfers the rights to
foreign exchange forward contracts, changes in the fair value of the
receive the contractual cash flows in
currency swaps and principal &

280 Empowering Emerging India INTEGRATED REPORT 2022-23 281

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial st
Statements
for the year ended 31 March 2023 for the year ended 31 March 2023

hedged asset or liability that are initial recognition. 12 month ECL Loss allowances for financial modified contractual terms) and the
attributable to the hedged risk. represents the portion of lifetime assets measured at amortised risk of a default occurring at initial
ECL that is expected to result cost are deducted from the gross recognition (based on the original,
The effective portion of changes from default events on a financial carrying amount of the assets. unmodified contractual terms). Any
in the fair value of derivatives instrument that are possible within For debt securities at FVOCI, the amount written off as a result of the
that are designated and qualify as 12 months after the reporting date. loss allowance is recognised in modification of contractual terms
cash flow hedges is recognised in OCI and carrying amount of the would not be reversed.
other comprehensive income and 
When determining whether credit financial asset is not reduced in the
accumulated under hedging reserve. risk of a financial asset has increased balance sheet. Loan modifications that are not
The gain or loss relating to the significantly since initial recognition identified as renegotiated are
ineffective portion is recognised and when estimating expected 
Loan contract renegotiation and considered to be commercial
immediately in the profit or loss. credit losses, the Company considers modifications: restructuring. Where a commercial
reasonable and supportable Loans are identified as renegotiated restructuring results in a modification

Amounts previously recognised in information that is relevant and (whether legalised through an
and classified as credit impaired
other comprehensive income and available without undue cost or effort. amendment to the existing terms or
when the Company modifies
accumulated in equity (relating This includes both quantitative and the issuance of a new loan contract)
contractual payment terms due
to effective portion as described qualitative information and analysis, such that the Company’s rights to
to significant credit distress of
above) are reclassified to profit or including on historical experience the cash flows under the original
the borrower. Renegotiated loans
loss in the periods when the hedged and forward-looking information. contract have expired, the old loan
remain classified as credit impaired
item affects profit or loss. (refer note 49). is derecognised and the new loan is
until there is sufficient evidence to
demonstrate a significant reduction recognised at fair value. The rights to

Hedge accounting is discontinued 
Management overlay is used
in the risk of non-payment of cash flows are generally considered
when the hedging instrument expires to adjust the ECL allowance in
future cash flows and retain the to have expired if the commercial
or is sold, terminated, or exercised, circumstances where management
designation of renegotiated until restructure is at market rates and
or when it no longer qualifies for judges that the existing inputs,
maturity or derecognition. no payment-related concession
hedge accounting. Any gain or loss assumptions and model techniques has been provided. Mandatory and
recognised in other comprehensive do not capture all the risk factors 
A loan that is renegotiated is general offer loan modifications
income and accumulated in equity relevant to the Company’s lending derecognised if the existing that are not borrower-specific, for
at that time remains in equity and portfolios. Emerging local or global agreement is cancelled and a new example market-wide customer
is recognised when the forecast macroeconomic, micro economic agreement is made on substantially relief programmes announced by
transaction is ultimately recognised or political events, and natural different terms, or if the terms of the Regulator or other statutory
in profit or loss. When a forecast disasters that are not incorporated an existing agreement are modified body, have not been classified as
transaction is no longer expected to into the current parameters, such that the renegotiated loan is renegotiated loans and so have
occur, the gain or loss accumulated risk ratings, or forward looking a substantially different financial not resulted in derecognition, but
in equity is recognised immediately information are examples of instrument. Any new loans that arise their stage allocation is determined
in profit or loss. such circumstances. The use of following derecognition events in considering all available and
management overlay may impact these circumstances are considered supportable information under the
h) Impairment of financial the amount of ECL recognised. to be originated credit impaired Company’s ECL policy.
instruments:
financial asset and continue to be
Equity instruments are not subject The Company recognises lifetime i) Collateral repossessed:
disclosed as renegotiated loans.
to impairment under Ind AS 109. ECL for trade advances, lease and

Based on operational requirements,
other receivables. The expected 
Other than originated credit-impaired the Company’s policy is to determine
The Company recognises lifetime credit losses on these financial loans, all other modified loans could whether a repossessed asset
expected credit losses (ECL) when assets are estimated using a be transferred out of stage 3 if can be best used for its internal
there has been a significant increase provision matrix based on the they no longer exhibit any evidence operations or should be sold. Assets
in credit risk since initial recognition Company’s historical credit loss of being credit impaired and, in the determined to be useful for the
and when the financial instrument experience, adjusted for factors case of renegotiated loans, there is internal operations are transferred
is credit impaired. If the credit risk that are specific to the debtors, sufficient evidence to demonstrate to their relevant asset category
on the financial instrument has not general economic conditions and a significant reduction in the risk of for capitalisation at their fair
increased significantly since initial an assessment of both the current non-payment of future cash flows market value.
recognition, the Company measures as well as the forecast direction over the minimum observation
the loss allowance for that financial of conditions at the reporting date, period, and there are no other In the normal course of business,
instrument at an amount equal to including time value of money where indicators of impairment. These the Company does not physically
12 month ECL. The assessment appropriate. Lifetime ECL represents loans could be transferred to stage repossess assets/properties in its
of whether lifetime ECL should be the expected credit losses that 1 or 2 based on the risk assessment loan portfolio, but engages external
recognised is based on significant will result from all possible default mechanism by comparing the agents to repossess and recover
increases in the likelihood or events over the expected life of a risk of a default occurring at the funds, generally by selling at auction,
risk of a default occurring since financial instrument. reporting date (based on the to settle outstanding debt. Any

282 Empowering Emerging India INTEGRATED REPORT 2022-23 283

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

surplus funds are returned to the and employee state insurance recognised in the Statement of Profit e) Employee stock options:
customers/ obligors. As a result of corporation and National Pension and Loss. 
Equity-settled share-based payments
this practice, the assets/ properties Scheme are post-employment to employees are recognised as an
When the calculation results in a
under legal repossession processes benefit plans under which a Company expense at the fair value of equity
potential asset for the Company, the
are not separately recorded on the pays fixed contributions and will stock options at the grant date.
recognised asset is limited to the
balance sheet. have no legal and constructive The fair value determined at the
present value of economic benefits
obligation to pay further amounts grant date of the equity-settled
j) Write offs: available in the form of any future
beyond its contributions. The share-based payments is expensed
refunds from the plan or reductions
The gross carrying amount of a Superannuation scheme, a defined on a straight-line basis over the
in future contribution to the plan.
financial asset is written off when contribution scheme, administered graded vesting period, based on
To calculate the present value of
there is no realistic prospect of by Life Insurance Corporation of the Company’s estimate of equity
economic benefits, consideration
further recovery. This is generally the India and the Company has no instruments that will eventually
is given to any applicable minimum
case when the Company determines obligation to the scheme beyond vest, with a corresponding increase
funding requirements.
that the debtor/borrower does not its contributions. in equity.
have assets or sources of income Remeasurement gains/losses:

Prepaid contributions are recognised 2.13 Finance costs:
that could generate sufficient cash
as an asset to the extent that a Remeasurement of defined benefit
flows to repay the amounts subject Finance costs include interest expense
cash refund or a reduction in future plans, comprising of actuarial gains /
to the write- off as per the Company’s computed by applying the effective
payments is available. losses, return on plan assets excluding
policy. However, financial assets that interest rate on respective financial
interest income are recognised
are written off could still be subject 
Company’s contribution paid/ instruments measured at Amortised
immediately in the balance sheet
to enforcement activities under the payable during the year to provident cost. Financial instruments include
with corresponding debit or credit
Company’s recovery procedures, fund, Superannuation scheme, ESIC bank term loans, associated liabilities in
to Other Comprehensive Income
taking into account legal advice where and National Pension Scheme is respect of securitisation transactions,
(OCI). Remeasurements are not
appropriate. Any recoveries made recognised in the Statement of non-convertible debentures, fixed
reclassified to Statement of profit
from written off assets are netted off profit and loss. deposits mobilised, commercial papers,
and loss in the subsequent period.
against the amount of financial assets subordinated debts and exchange
c) Gratuity:
written off during the year under “Bad When the benefits of a plan are differences arising from foreign currency
debts and write offs” forming part of The Company’s liability towards changed or when a plan is curtailed, borrowings to the extent they are
“Impairment on financial instruments” gratuity scheme is determined by the resulting change in benefit that regarded as an adjustment to the
in the Statement of profit and loss. independent actuaries, using the relates to past service (‘past service interest cost. Finance costs are charged
projected unit credit method. The cost’ or ‘past service gain’) or the gain to the Statement of profit and loss.
2.12 Employee benefits: present value of the defined benefit or loss on curtailment is recognised
a) Short-term employee benefits: obligation is determined by discounting 
Interest expense on lease liabilities
immediately in Statement of profit
the estimated future cash outflows computed by applying the Company’s
All employee benefits payable wholly and Loss. The Company recognises
by reference to market yields at weighted average incremental
within twelve months of receiving gains and losses on the settlement
the end of the reporting period on borrowing rate has been included under
employee services are classified of a defined benefit plan when the
government bonds that have terms finance costs.
as short-term employee benefits. settlement occurs.
These benefits include salaries and approximating to the terms of the 2.14 Taxation - Current and deferred tax:
related obligation. Past services Remeasurement gains or losses on
wages, bonus and ex-gratia. Short- Income tax expense comprises of current
are recognised at the earlier of the long-term compensated absences
term employee benefit obligations tax and deferred tax. It is recognised in
plan amendment / curtailment and that are classified as other long-
are measured on an undiscounted Statement of profit and loss except to
recognition of related restructuring term benefits are recognised in
basis and these are expensed as the extent that it relates to an item
costs/termination benefits. Statement of profit and loss.
the related service is provided. A recognised directly in equity or in other
liability is recognised for the amount The Company determines the net d) Leave encashment / comprehensive income.
expected to be paid if the Company interest expense (income) on the net compensated absences / sick
has a present legal or constructive leave: a) Current tax:
defined benefit liability (asset) for
obligation to pay this amount as a the period by applying the discount The Company provides for the 
Current tax comprises amount
result of past service provided by rate used to measure the defined encashment / availment of leave of tax payable in respect of the
the employee and the obligation can benefit obligation at the beginning with pay subject to certain rules. taxable income or loss for the year
be estimated reliably. of the annual period to the then-net The employees are entitled to determined in accordance with
b) Contribution to provident fund, defined benefit liability (asset), taking accumulate leave subject to certain Income Tax Act, 1961 and any
Superannuation fund, ESIC and into account any changes in the net limits for future encashment/ adjustment to the tax payable or
National Pension Scheme: defined benefit liability (asset) during availment. The liability is provided receivable in respect of previous
the period as a result of contributions based on the number of days of years. The Company’s current tax
The defined contribution plans
and benefit payments. Net interest unutilised leave at each balance is calculated using tax rates that
i.e. provident fund (administered
expense and other expenses sheet date on the basis of an have been enacted or substantively
through Regional Provident Fund
related to defined benefit plans are independent actuarial valuation. enacted by the end of the reporting
Office), superannuation scheme

284 Empowering Emerging India INTEGRATED REPORT 2022-23 285

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

period. Significant judgments are Deferred tax assets are recognised extent of the impairment loss (if any). at the end of the reporting period, taking
involved in determining the provision to the extent that it is probable Recoverable amount is determined for into account the risks and uncertainties
for income taxes including judgment that future taxable income will be an individual asset, unless the asset does surrounding the obligation. Provisions are
on whether tax positions are available against which the deductible not generate cash flows that are largely determined by discounting the expected
probable of being sustained in tax temporary difference could be independent of those from other assets future cash flows at a pre-tax rate that
assessments. A tax assessment utilised. Such deferred tax assets or group of assets. reflects current market assessments of
can involve complex issues, which and liabilities are not recognised the time value of money and the risks
can only be resolved over extended if the temporary difference arises Recoverable amount is the higher of fair specific to the liability.
time periods. from the initial recognition of assets value less costs to sell and value in use.
and liabilities in a transaction that In assessing value in use, the estimated When there is a possible obligation or a
Current tax assets and liabilities future cash flows are discounted to their present obligation in respect of which
affects neither the taxable profit
are offset only if there is a legally present value using a pre-tax discount the likelihood of outflow of resources
nor the accounting profit. The
enforceable right to set off the rate that reflects current market is remote, no provision is made. The
carrying amount of deferred tax
recognised amounts, and it is assessments of the time value of money disclosure of contingent liability is made
assets is reviewed at the end of each
intended to realise the asset and and the risks specific to the asset for when there is a possible obligation or
reporting period and reduced to the
settle the liability on a net basis which the estimates of future cash flows present obligation that may, but probably
extent that it is no longer probable
or simultaneously. have not been adjusted. will not, require an outflow of resources.
that sufficient taxable profits will be

Current tax is recognised in available to allow all or part of the The Company also discloses present
If the recoverable amount of an asset (or obligation for which a reliable estimate
statement of profit or loss, asset to be recovered. Deferred tax
cash-generating unit) is estimated to be cannot be made as a contingent liability.
except when they relate to items is recognised in statement of profit
less than its carrying amount, the carrying
that are recognised in other or loss, except when they relate to
amount of the asset (or cash-generating 2.18 Leases:
comprehensive income or directly items that are recognised in other
unit) is reduced to its recoverable amount The Company as a lessee:
in equity, in which case, the current comprehensive income or directly in
and the impairment loss is recognised in
tax is also recognised in other equity, in which case, the deferred As a lessee, the Company’s lease asset
the Statement of profit and loss.
comprehensive income or directly in tax is also recognised in other class primarily consist of buildings or
equity respectively. comprehensive income or directly in When an impairment loss subsequently part thereof taken on lease for office
equity respectively. reverses, the carrying amount of the asset premises, certain IT equipments and
The management periodically
(or a cash-generating unit) is increased to general purpose office equipments used
evaluates positions taken in the tax Deferred tax assets and liabilities
the revised estimate of its recoverable for operating activities. The Company
returns with respect to situations are offset only if there is a legally
amount such that the increased carrying assesses whether a contract contains
in which applicable tax regulations enforceable right to set off current
amount does not exceed the carrying a lease, at inception of a contract. A
are subject to interpretation tax assets against current tax
amount that would have been determined contract is, or contains, a lease if the
and establishes provisions liabilities and the deferred tax assets
if no impairment loss had been recognised contract conveys the right to control the
where appropriate. and the deferred tax liabilities relate
for the asset (or cash-generating unit) in use of an identified asset for a period of
b) Deferred tax: to income taxes levied by the same time in exchange for consideration. To
prior years. The reversal of an impairment
taxation authority on either the assess whether a contract conveys the
Deferred tax assets and liabilities loss is recognised in Statement of profit
same taxable entity or different right to control the use of an identified
are recognised for the future and loss.
taxable entities which intend either asset, the Company assesses whether:
tax consequences of temporary
to settle current tax liabilities on a 2.17 Provisions and contingent liabilities: (i) the contract involves the use of an
differences between the carrying
net basis or simultaneously. identified asset (ii) the Company has
values of assets and liabilities Provisions are recognised when there is
and their respective tax bases. a present obligation as a result of a past substantially all of the economic benefits
2.15 Securities issue expenses:
Deferred tax liabilities and assets event, and it is probable that an outflow of from use of the asset through the period
Expenses incurred in connection with of the lease and (iii) the Company has the
are measured at the tax rates that resources embodying economic benefits
fresh issue of Share capital are adjusted right to direct the use of the asset.
are expected to apply in the period will be required to settle the obligation and
against Securities premium.
in which the liability is settled or there is a reliable estimate of the amount At the date of commencement of the
the asset realised, based on tax of the obligation. Provisions are reviewed lease, the Company recognises a right-of-
2.16 Impairment of assets other than
rates (and tax laws) that have been at each balance sheet date and adjusted use asset (“ROU”) and a corresponding
financial assets:
enacted or substantively enacted to reflect the current best estimate. If it lease liability for all lease arrangements
by the end of the reporting period. The Company reviews the carrying is no longer probable that the outflow in which it is a lessee, except for leases
The measurement of deferred amounts of its tangible (including assets of resources would be required to settle with a term of twelve months or less
tax liabilities and assets reflects given on operating lease) and intangible the obligation, the provision is reversed. (short-term leases) and low value leases.
the tax consequence that would assets at the end of each reporting Provisions are not recognised for future For these short-term and low value
follow from the manner in which period, to determine whether there is operating losses. leases, the Company recognises the
the Company expects, at the end any indication that those assets have
lease payments as an operating expense
of the reporting period, to recover impaired. If any such indication exists, The amount recognised as a provision is
on a straight-line basis over the term of
or settle the carrying amount of its the recoverable amount of the asset the best estimate of the consideration
the lease.
assets and liabilities. is estimated in order to determine the required to settle the present obligation

286 Empowering Emerging India INTEGRATED REPORT 2022-23 287

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

The carrying amount of lease liabilities rewards of ownership to the lessee, 2.19 Cash and cash equivalents: (Indian Accounting Standards) Rules,
is remeasured if there is a modification, a the contract is classified as a finance Cash and cash equivalents in the balance 2015 by issuing the Companies (Indian
change in the lease term, a change in the lease. All other leases are classified as sheet comprise cash on hand, cheques Accounting Standards) Amendment
lease payments (e.g., changes to future operating leases. and drafts on hand, balance with banks Rules, 2023, applicable from April 1,
payments resulting from a change in an in current accounts and short-term 2023, as below:
index or rate used to determine such lease The Company has given certain vehicles
deposits with an original maturity of Ind AS 1 – Presentation of Financial
payments) or a change in the assessment of on lease where it has substantially
three months or less, which are subject Statements:
an option to purchase the underlying asset. retained the risks and rewards of
to an insignificant risk of change in value. The amendments require companies to
ownership and hence these are classified
Certain lease arrangements includes the as operating leases. These assets 2.20 Earnings Per Share: disclose their material accounting policies
options to extend or terminate the lease given on operating lease are included Basic earnings per share is calculated by rather than their significant accounting
before the end of the lease term. ROU in PPE. Lease income is recognised in dividing the net profit or loss for the period policies. Accounting policy information,
assets and lease liabilities includes these the Statement of profit and loss as attributable to equity shareholders by the together with other information, is
options when it is reasonably certain that per contractual rental unless another weighted average number of equity shares material when it can reasonably be
option to extend will be exercised and systematic basis is more representative outstanding during the period. Earnings expected to influence decisions of
option to terminate will not be exercised. of the time pattern in which the benefit considered in ascertaining the Company’s primary users of general purpose
derived from the leased asset is earnings per share is the net profit for financial statements. The Company
The right-of-use assets are initially
diminished. Costs including depreciation the period after deducting preference does not expect this amendment
recognised at cost which comprises of
are recognised as an expense in the dividends, if any, for the period. The to have any significant impact in its
initial amount of lease liability adjusted
Statement of profit and loss. Initial direct weighted average number of equity shares financial statements.
for any lease payments made at or prior
to the commencement date of the lease costs are recognised immediately in outstanding during the period and for all Ind AS 12 – Income Taxes:
plus any initial direct costs less any Statement of profit and loss. periods presented is adjusted for events, The amendments clarify how companies
lease incentives. These are subsequently such as bonus shares, sub-division of account for deferred tax on transactions
In accordance with Ind AS 116, Leases, shares etc. that have changed the number
measured at cost less accumulated such as leases and decommissioning
the financial information has been of equity shares outstanding, without a
depreciation and impairment losses, if any. obligations. The amendments narrowed
presented in the following manner. corresponding change in resources. For the
Right-of-use assets are depreciated from the scope of the recognition exemption
the commencement date on a straight-line purpose of calculating diluted earnings per in paragraphs 15 and 24 of Ind AS
a) ROU assets and lease liabilities have
basis over the shorter of the lease term share, the net profit or loss for the period 12 (recognition exemption) so that
been included within the line items
and useful life of the underlying asset. attributable to equity shareholders and the it no longer applies to transactions
“Property, Plant and Equipment”
weighted average number of equity shares that, on initial recognition, give rise
The lease liability is initially measured and “Other financial liabilities”
outstanding during the period are adjusted to equal taxable and deductible
at amortised cost at the present value respectively in the Balance sheet;
for the effects of all dilutive potential temporary differences. The Company
of the future lease payments that b) 
Interest expenses on the lease equity shares. Diluted earnings per share is evaluating the impact, if any, in its
are not paid at the commencement liability and depreciation charge reflects the potential dilution that could financial statements.
date, discounted using the Company’s for the right-to-use asset have occur if securities or other contracts to
incremental average borrowing rate. been included within the line items issue equity shares were exercised or Ind AS 8 – Accounting Policies,
Lease liabilities are remeasured with a “Finance costs” and “Depreciation, converted during the year. Changes in Accounting Estimates and
corresponding adjustment to the related amortisation and impairment” Errors:
right of use asset if the Company changes 2.21 Dividend: The amendments will help entities
respectively in the statement of
its assessment of whether it will exercise The Company recognises a liability to to distinguish between accounting
profit or loss;
an extension or a termination option. make cash distributions to equity holders policies and accounting estimates. The
c) 
Short-term lease payments and when the distribution is authorised definition of a change in accounting
In the Balance Sheet, ROU assets have payments for leases of low- and the distribution is no longer at the estimates has been replaced with a
been included in Property, Plant and value assets, where exemption as discretion of the Company. As per the definition of accounting estimates.
Equipment and Lease liabilities have been permitted under this standard is corporate laws in India, a distribution is Under the new definition, accounting
included in Other financial liabilities and availed, have been recognised as authorised when it is approved by the estimates are “monetary amounts in
the principal portion of lease payments expense on a straight line basis over shareholders. A corresponding amount is financial statements that are subject
have been classified as financing cash the lease term in the statement of recognised directly in equity. to measurement uncertainty”. Entities
flows. The Company has used a single profit or loss.
2.22 New standards or amendments to develop accounting estimates if
discount rate to a portfolio of leases
d) 
Cash payments for the principal the existing standards and other accounting policies require items in
with similar characteristics.
of the lease liability have been pronouncements: financial statements to be measured
presented within “financing activities” Recent pronouncements: in a way that involves measurement
Where the Company is the lessor:
in the statement of cash flows; Ministry of Corporate Affairs (“MCA”) uncertainty. The Company does

At the inception of the lease, the not expect this amendment to
notifies new standard or amendments to
Company classifies each of its leases as The disclosures as required in have any significant impact in its
the existing standards under Companies
either a finance lease or an operating accordance with Ind AS 116, Leases, financial statements.
(Indian Accounting Standards) Rules as
lease. Whenever the terms of the lease are set out under note no. 41.
issued from time to time. On March 31,
transfer substantially all the risks and
2023, MCA amended the Companies

288 Empowering Emerging India INTEGRATED REPORT 2022-23 289

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 3 Note : 6
Cash and cash equivalents Receivables
₹ in crores ₹ in crores
31st March 2023 31st March 2022 Particulars 31st March 2023 31st March 2022
Cash on hand 32.91 40.58 Trade receivables
Cheques and drafts on hand 17.65 36.30 i) Secured, considered good
Balances with banks in current accounts 199.19 250.99 - Lease rental receivable on operating lease transactions 6.85 3.36
249.75 327.87 Less: Impairment loss allowance (4.67) (2.14)
2.18 1.22
ii) Unsecured, considered good:
Note : 4 - Subvention and other income receivables 19.66 7.87
Bank balances other than cash and cash equivalents iii) Credit impaired:
₹ in crores - Subvention and other income receivables 0.80 4.37
Particulars 31st March 2023 31st March 2022
0.80 4.37
Less: Impairment loss allowance (0.80) (4.37)
Earmarked balances with banks -
- -
- Unclaimed dividend accounts 0.60 0.58
21.84 9.09
Term deposits with maturity less than 12 months -
- Free 2,232.45 3,241.13 There is no due by directors or other officers of the company or any firm or private company in which any
- Under lien # 243.01 471.19 director is a partner, a director or a member.
Interest accrued on Term deposits 106.25 109.92
Trade Receivables aging schedule
2,582.31 3,822.82
#Details of Term deposits - Under lien As at 31st March 2023
₹ in crores
₹ in crores Outstanding for following periods from due date of payment
As at 31st March 2023 As at 31st March 2022 Particulars Less than 6 months - More than
1 - 2 years 2 - 3 years Total
Bank Bank 6 months 1 year 3 years
balances balances i) Undisputed Trade receivables –
Other Other
Particulars other other
than cash
financial
Total than cash
financial
Total – considered good 20.48 - - - - 20.48
assets assets
and cash and cash – which have significant increase in 1.68 - - - - 1.68
(Note 9) (Note 9)
equivalents equivalents credit risk
(Note 4) (Note 4)
– credit impaired 1.63 0.55 0.51 0.15 - 2.84
For Statutory Liquidity Ratio 100.00 - 100.00 135.00 100.00 235.00 ii) Disputed Trade Receivables –
For securitisation transactions 120.28 2.47 122.75 305.42 - 305.42 – considered good - - - - - -
Legal deposits 0.21 - 0.21 0.21 - 0.21 –w hich have significant increase in 0.93 0.93 0.45 - - 2.31
For Constituent Subsidiary General Ledger 20.90 10.00 30.90 30.00 - 30.00 credit risk
(CSGL) account – credit impaired - - - - - -
Collateral deposits with banks for Aadhaar 1.62 - 1.62 0.56 1.00 1.56 Total 24.72 1.48 0.96 0.15 - 27.31
authentication and others & Rights Issue
Total 243.01 12.47 255.48 471.19 101.00 572.19 There is neither an instance where due date is not specified nor unbilled due.

Note : 5
Derivative financial instruments
₹ in crores
31st March 2023 31st March 2022
Notional Fair value of Notional Fair value of
amounts Assets amounts Assets
Currency derivatives:
Options - - 645.01 26.63
Total derivative financial instruments - - 645.01 26.63

290 Empowering Emerging India INTEGRATED REPORT 2022-23 291

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

As at 31st March 2022

-
-

-
834.47
5,708.03

177.52

286.55
1.59

35.24

0.02
0.24

0.45

799.30

77.97

210.55
₹ in crores

Total
₹ in crores
Outstanding for following periods from due date of payment
Particulars Less than 6 months - More than
1 - 2 years 2 - 3 years Total
6 months 1 year 3 years

(at cost)

-
-

-
0.02

0.45

799.30

77.97

210.55
Others
i) Undisputed Trade receivables –
– considered good 8.87 - - - - 8.87
– which have significant increase in 0.27 - - - - 0.27

-
-

-
834.47
4,402.39

-
260.45
1.59

35.24

0.24
31st March 2022
credit risk

total
Sub-
– credit impaired 1.24 4.63 0.45 - 0.14 6.46
ii) Disputed Trade Receivables –

At Fair Value

-
-

-
834.47

-
0.24
Through
– considered good - - - - - -

or loss
profit
– which have significant increase in - - - - - -
credit risk
– credit impaired - - - - - -

-
1,305.64 4,402.39

-
260.45
1.59

35.24
Through
Total 10.38 4.63 0.45 - 0.14 15.60

OCI
There is neither an instance where due date is not specified nor unbilled due.

-
177.52

-
26.10
Amortised
Note : 7

cost
Loans
₹ in crores

-
6,030.40

123.42

94.12
1,973.02
377.40
1.59

35.24

0.02
0.06

0.45

799.30

77.97

210.55
Total
Particulars 31st March 2023 31st March 2022
A) Loans (at amortised cost):
Term loans:

-
0.02

0.45

799.30

77.97

210.55
(at cost)
Others
- Retail loans 75,524.51 60,970.46
- Small and Medium Enterprise (SME) financing 3,481.07 1,196.15
Bills of exchange 975.61 944.33
Trade advances 2,540.42 1,807.42

-
4,766.46

-
94.12
1,973.02
351.43
1.59

35.24

0.06
31st March 2023

total
Sub-
Finance lease 220.95 26.82
Total (Gross) 82,742.56 64,945.18

At Fair Value
Less: Impairment loss allowance (3,287.83) (4,500.54)

-
94.12
1,973.02

0.06
profit or
Through
Total (Net) 79,454.73 60,444.64

loss
B) i) Secured by tangible assets 77,784.42 61,088.34
ii) Secured by intangible assets - -

-
4,766.46

-
351.43
1.59

35.24
iii) Covered by bank / Government guarantees 319.16 493.49

Through
OCI
iv) Unsecured 4,638.98 3,363.35
Total (Gross) 82,742.56 64,945.18
Less: Impairment loss allowance (3,287.83) (4,500.54)

-
-

-
1,263.94

123.42

-
25.97
Amortised
Total (Net) 79,454.73 60,444.64

cost
C) i) Loans in India
a) Public Sector - -
b) Others 82,742.56 64,945.18

Sri Lanka (58.20% of equity share

Logistics Solutions Private Limited

USA, LLC (Joint venture entity with De

iii) Mahindra Finance CSR Foundation
(1,000 equity shares of face value

Lage Landen Financial Services INC. in

iii) Certificate of deposits with banks

Limited (82,47,424 equity shares

iii) Equity shares of Jyoti Structures

49% Ownership in Mahindra Finance

Total (Gross) 82,742.56 64,945.18

ii) Mahindra Rural Housing Finance

Jyoti Structures Limited (Assets

ii) New Democratic Electoral Trust

Certificates under securitisation

i) Equity investment in Smartshift

acquired in satisfaction of debt)
v) Non-Convertible Debentures of

iv) Mahindra Ideal Finance Limited,

shares of face value of ₹ 10/–
Limited (12,09,52,678 equity
Less: Impairment loss allowance (3,287.83) (4,500.54)

i) Investments in Pass Through

i) Mahindra Insurance Brokers

Limited (Assets acquired in
Total (Net) - C (i) 79,454.73 60,444.64

iv) Investment in Bonds #

ii) Loans outside India - -

United States of America)

Government securities #

satisfaction of debt)
Units of mutual funds

Commercial Papers
Less: Impairment loss allowance - -

Equity instruments -

of face value of
Total (Net) - C (ii) - -

of ₹ 10/– each)
Investments

Debt securities –

₹ 10/– each)
transactions

Joint Venture -
Total (Net) - C (i+ii) 79,454.73 60,444.64

Subsidiaries -
Investments

Associates -
Note : 8

capital)
Notes:

each)
- There is no loan asset measured at FVOCI or FVTPL or designated at FVTPL.
- Refer note no. 49 for information related to stage-wise classification of loan assets and ECL movement.

292 Empowering Emerging India ii) INTEGRATED REPORT 2022-23 293

 Investments

294
₹ in crores
31st March 2023 31st March 2022
Amortised Others
At Fair Value At Fair Value Total
cost (at cost)
Investments Amortised Others
Through Total Through
cost Through Sub- (at cost) Through Sub-
profit or profit
OCI total OCI total
loss or loss
Financial
st
i) Mahindra Manulife Investment - - - - 195.30 195.30 - - - - 195.30 195.30
Management Private Ltd. (51:49
Joint Venture with Manulife Asset

Empowering Emerging India

Management (Singapore) Pte. Ltd.
(Manulife)) (19,53,00,000 equity
shares of face value of ₹ 10/-
each)
for the year ended 31 March 2023

iii) Mahindra Manulife Trustee Private - - - - 0.50 0.50 - - - - 0.50 0.50

Ltd (51:49 Joint Venture with
Manulife Asset Management
(Singapore) Pte. Ltd. (Manulife))
(5,00,000 equity shares of face
value of ₹ 10/– each)
Others -
i) Compulsorily Convertible - 7.15 - 7.15 - 7.15 7.15 7.15 7.15
Statements

Cumulative Participating
Preference Shares (CCCPS) in
Smartshift Logistics Solutions
Private Limited
ii) Interest accrued on Government 22.33 85.98 - 85.98 108.31 22.42 77.64 - 77.64 - 100.06
securities
iii) Interest accrued on Bonds 0.06 8.86 - 8.86 8.92 0.06 6.80 - 6.80 - 6.86
iv) Interest accrued on Pass Through 0.39 - - - 0.39 0.08 - - - - 0.08
Certificates under securitisation
transactions
Total - Gross (A) 1,436.11 5,256.71 2,067.20 7,323.91 1,284.09 10,044.11 1,531.82 4,791.26 834.71 5,625.97 1,284.09 8,441.88
i) Investments outside India - - - - 288.52 288.52 - - - - 288.52 288.52
ii) Investments in India 1,436.11 5,256.71 2,067.20 7,323.91 995.57 9,755.59 1,531.82 4,791.26 834.71 5,625.97 995.57 8,153.36
Total - Gross (B) 1,436.11 5,256.71 2,067.20 7,323.91 1,284.09 10,044.11 1,531.82 4,791.26 834.71 5,625.97 1,284.09 8,441.88
Less: Allowance for Impairment loss (C) 0.98 - - - 54.51 55.49 1.61 - - - - 1.61
Total - Net D (A-C) 1,435.13 5,256.71 2,067.20 7,323.91 1,229.58 9,988.62 1,530.21 4,791.26 834.71 5,625.97 1,284.09 8,440.27

# The investments in Government securities for ₹ 1,263.94 crore (31 st March 2022: ₹ 1,305.64 crore) and investments in Bonds for ₹ 25.97
Notes forming part of the Standalone

crore (31 st March 2022: ₹ 26.10 crore) as shown under Amortised cost category are Statutory Liquid Assets as required under section 45
- IB of the Reserve Bank of India Act, 1934, with a floating charge created in favour of public deposit holders through a “Trust Deed” with an
independent Trust.

Note : 9
Other financial assets
₹ in crores
31st March 2023 31st March 2022
Security Deposits 61.52 32.33
Term deposits with banks (remaining maturity more than 12 months):
- Free 1,349.75 15.92
Financial
Corporate

- Under lien (refer note 4) 12.47 101.00

st
Overview & IR

Interest accrued on Term deposits 9.74 17.58

Others # 155.80 56.30
1,589.28 223.13
Report
Board’s

for the year ended 31 March 2023

# includes receivables related to insurance claims and online payment aggregators.

Note : 10
Deferred tax assets (net) and Tax expense
₹ in crores
Analysis

Balance Charge/ Balance Charge/ Balance

Charge/ Charge/ Charge/
as at (credit) to as at (credit) to as at
Statements
Management

(credit) to (credit) to (credit) to

Discussion and

1 April profit and 31st March profit and 31st March

equity OCI OCI
2021 loss 2022 loss 2023
(i) Deferred tax assets (net)
Tax effect of items constituting deferred tax liabilities:
Report on
Corporate

- Application of EIR on financial assets (76.27) (8.70) - - (84.97) 4.87 - (80.10)

Governance

- Application of EIR on financial liabilities (19.17) 6.75 - - (12.42) 3.74 - (8.68)

- Share based payments (0.39) - - - (0.39) (4.35) - (4.74)
- FVTPL financial asset (10.71) (2.97) - - (13.68) 13.98 - 0.30
Report

- Others # (110.34) (21.25) - - (131.59) - - (131.59)

Business

(216.88) (26.17) - - (243.05) 18.24 - (224.82)

Responsibility

Tax effect of items constituting deferred tax assets:

& Sustainability

- Provision for employee benefits 18.93 (0.04) - 0.78 19.67 2.19 4.35 26.21
- Derivatives 32.79 19.45 - - 52.24 (0.28) - 51.96
- Allowance for ECL 944.44 (102.84) - - 841.60 (277.16) 22.35 586.79
Financial
Standalone

- Provision on standard assets 62.91 90.01 - - 152.92 - - 152.92

Statements

Notes forming part of the Standalone

- Other provisions 20.18 (0.41) - (6.72) 13.05 29.54 1.60 44.18

1,079.25 6.17 - (5.94) 1,079.48 (245.71) 28.30 862.06
C

Net deferred tax assets 862.36 (20.00) - (5.94) 836.42 (227.47) 28.30 637.24
INTEGRATED REPORT 2022-23
Financial

# includes deferred tax on account of securitisation transactions, fair valuation of Govt. securities / bonds and timing differences arising
Statements
 onsolidated

on PPE.
295
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

There is no immovable property where title deed of such immovable property is not held in name of the Company or jointly held with others.
715.79

424.94
197.52

808.04
808.04

424.94

505.91

383.10
681.20
105.27

489.72

458.68 1,187.11

404.30
110.65

114.98
94.34

174.76
93.80
Total
₹ in crores
₹ in crores
31st March 2023 31st March 2022
(ii) Income tax recognised in Statement of profit and loss
(a) Current tax:

272.51
46.24

265.99
265.99

100.56
100.56
52.76

227.34

98.92

70.11

142.21

165.43
316.47
34.65

47.47
45.83

28.46
Right-Of-
Use Assets
(Leasehold
premises)
In respect of current year 480.00 321.90
In respect of prior years 6.28 26.26
486.28 348.16
(b) Deferred tax:

Plant &
Machineries
under lease

-
-

-
-

-
0.19

0.19
0.19

0.19

0.02

0.13
0.13
0.11

0.00

0.13

0.06
0.06
In respect of current year origination and reversal of temporary differences 227.47 28.99
In respect of prior years - (8.99)
227.47 20.00
Total Income tax recognised in Statement of profit and loss 713.75 368.16

74.15

38.93
76.14

147.15
147.15

323.83

13.95

38.92

86.76

108.23
237.07
3.14

187.06
10.38

25.57
0.59

50.20
2.36
Vehicles
under
lease
₹ in crores
31st March 2023 31st March 2022

84.01
22.68

92.44
92.44

109.13

60.07

60.35
60.35

61.26

32.09
47.88
14.25

35.05
18.36

13.47
13.19

17.12
16.22
Vehicles

# Secured Non–convertible debentures (NCDs) have an exclusive pari-passu charges on Buildings.

The Company has not revalued its Property, Plant and Equipment (including Right–of–Use Assets)
(iii) Income tax recognised in Other Comprehensive Income

Deferred tax related to items recognised in Other Comprehensive Income during
the year:
Remeasurement of defined employee benefits 4.35 0.79

Office
equipments

87.18
8.86

80.36
80.36

78.02

72.64

65.04
65.04

60.75

15.32
17.27
15.68

10.33
12.67

7.89
15.49

8.20
12.49
Net gain / (loss) on equity instruments through OCI - (6.55)
Net gain / (loss) on debt instruments through OCI 22.35 (0.18)

Effective portion of gains and loss on designated portion of hedging instruments in 1.60 -
a cash flow hedge

92.99
2.63

91.65
91.65

89.73

70.78

72.41
3.97

3.20
5.12

5.46

72.41

5.25

72.83
3.83

4.83

19.24
16.90
Furniture
and
fixtures
Total Income tax recognised in Other Comprehensive Income 28.30 (5.94)

102.86
40.97

128.36
128.36
15.47

26.74

125.63

87.62

87.20
29.47

14.99

87.20
15.41

23.86

81.62

41.16
44.01
29.44
Computers
and Data
processing
units
₹ in crores
As at As at
31st March 2023 31st March 2022
(iv) Reconciliation of estimated Income tax expense at tax rate to income tax
expense reported in the Statement of profit and loss:

-
-

-
-

-
1.09

1.09
1.09

1.09

0.31
0.02

0.33
0.33
0.02

0.35

0.76
0.74
Buildings #
Profit before tax 2,698.07 1,356.91
Applicable income tax rate 25.168% 25.168%
Expected income tax expense 679.05 341.51

-
-

-
-

-
-

-
-
0.81

0.81
0.81

0.81

0.81
0.81
Land
(Freehold)
Tax effect of adjustments to reconcile expected Income tax expense at tax
rate to reported income tax expense:
Effect of income exempt from tax (1.04) (0.65)

Property, plant and equipments

Effect of expenses / provisions not deductible in determining taxable profit 26.93 8.57

ACCUMULATED DEPRECIATION AND

Effect of changes in estimates related to prior years - 1.39

Disposals/deductions during the year

Disposals/deductions during the year

Disposals/deductions during the year

Disposals/deductions during the year

Adjustment related to tax of prior years 6.28 17.27

Balance as at 31st March 2023

Balance as at 31st March 2022
Others 2.53 0.07

Balance as at 31st March 2022

Balance as at 31st March 2023

Balance as at 1st April 2022
GROSS CARRYING AMOUNT
Balance as at 1st April 2021

Balance as at 1st April 2021

Reported income tax expense 713.75 368.16

Balance as at 1 st April 2022

Additions during the year

Additions during the year

Effective tax rate 26.45% 27.13%

NET CARRYING AMOUNT

Additions during the year

Additions during the year

March 2023
As at 31st March 2022
IMPAIRMENT LOSSES
Note : 11

31st
Particulars

As at
296 Empowering Emerging India INTEGRATED REPORT 2022-23 297
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Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 12 Note : 14
Other Intangible assets Derivative financial instruments
₹ in crores ₹ in crores
Computer 31 st March 2023 31st March 2022
Particulars
Software
Notional Fair value of Notional Fair value of
GROSS CARRYING AMOUNT amounts Liabilities amounts Liabilities
Balance as at 1st April 2021 99.73 Currency / interest rate derivatives unhedged:
Additions during the year 2.99 (refer note 53 (III))
Deductions during the year - Forward contracts - - 549.99 36.03
Balance as at 31st March 2022 102.72 Currency swaps/Options 1,063.50 144.83 1,600.19 146.19
Balance as at 1st April 2022 102.72 Total (A) 1,063.50 144.83 2,150.18 182.22
Additions during the year 17.05
Deductions during the year - Currency / interest rate derivatives hedged: (refer
Balance as at 31st March 2023 119.77 note 53 (III))

ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES Forward contracts 839.91 16.92 - -

Balance as at 1st April 2021 81.10 Currency swaps/Options 827.70 18.95 - -

Additions during the year 11.85 Total (B) 1,667.61 35.87 - -

Deductions during the year - Total derivative financial instruments (A+B) 2,731.11 180.70 2,150.18 182.22

Balance as at 31st March 2022 92.95

Balance as at 1st April 2022 92.95
Additions during the year 12.47 ₹ in crores
Movement in Cash Flow Hedge Reserve 31st March 2023 31st March 2022
Deductions during the year -
Balance as at 31st March 2023 105.42 Balance at the beginning of the year - -

NET CARRYING AMOUNT Recognised on Cash Flow Hedge Reserve (6.34) -

As at 31st March 2022 9.77 Reclassified to profit or loss - -

As at 31st March 2023 14.35 Income Tax relating to gain/ loss on the OCI 1.60 -
(4.74) -
The Company has not revalued its Intangible Assets.

Note : 15
Note : 13
Payables
Other non-financial assets
₹ in crores
₹ in crores
31st March 2023 31st March 2022
31st March 2023 31st March 2022
I) Trade Payables
Capital advances 216.01 132.89
i) total outstanding dues of micro enterprises and small enterprises - -
Prepaid expenses 52.71 51.45
ii) total outstanding dues of creditors other than micro enterprises and small 1,126.57 954.88
Balances with Government Authorities 208.41 100.49 enterprises
Unamortised placement and arrangement fees paid on borrowing instruments - 1.00 II) Other Payables
Insurance advances 5.94 2.01 i) total outstanding dues of micro enterprises and small enterprises 2.62 3.53
Other advances 9.80 14.75 ii) total outstanding dues of creditors other than micro enterprises and small 37.12 46.87
492.87 302.59 enterprises
1,166.31 1,005.28

Micro, Small and Medium Enterprises:

Based on and to the extent of the information received by the Company from the suppliers during the year
regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act), the total outstanding dues of Micro and Small enterprises, which are outstanding for more than the
stipulated period and other disclosures as per the Micro, Small and Medium Enterprises Development Act,
2006 (hereinafter referred to as “the MSMED Act”) are given below:

298 Empowering Emerging India INTEGRATED REPORT 2022-23 299

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

₹ in crores Note : 16
31st March 2023 31st March 2022
Debt Securities
a) Dues remaining unpaid to any supplier at the year end ₹ in crores
– Principal 2.62 3.53 31st March 2023 31st March 2022
– Interest on the above At Amortised cost
b) Interest paid in terms of Section 16 of the MSMED Act along with the amount of - - Non–convertible debentures (Secured) 19,464.32 16,610.55
payment made to the supplier beyond the appointed day during the year
Non–convertible debentures (Unsecured) 994.95 795.82
– Principal paid beyond the appointed date - -
Commercial Papers (Unsecured) 3,936.00 496.56
– Interest paid in terms of Section 16 of the MSMED Act
Rupee Denominated Secured Bonds overseas (Masala Bonds) 349.80 349.78
c) Amount of interest due and payable for the period of delay on payments made - -
Total 24,745.07 18,252.71
beyond the appointed day during the year
Debt securities in India 24,395.27 17,902.93
d) Amount of interest accrued and remaining unpaid
Debt securities outside India 349.80 349.78
e) Further interest due and payable even in the succeeding years, until such date when - -
the interest due as above are actually paid to the small enterprises Total 24,745.07 18,252.71
2.62 3.53
Note: There is no debt securities measured at FVTPL or designated at FVTPL.

Trade Payables aging schedule The Secured Non-convertible debentures are secured by pari-passu charges on Buildings (forming part of PPE)
and exclusive charges on receivables under loan contracts having carrying value of ₹ 22,363.93 crore (March
As at 31st March 2023
2022: ₹ 21,093.21 crore).
₹ in crores
Outstanding for following periods from due date of payment
There are no redeemed bonds/debentures which the Company has power to reissue.
Particulars Less than More than 3
1 - 2 years 2 - 3 years Total
1 year years
i) MSME 2.62 - - - 2.62 Details of Non-convertible debentures (Secured):
ii) Others 1,094.44 17.64 7.11 44.50 1,163.69 As at 31st March 2023 As at 31st March 2022

Total 1,097.06 17.64 7.11 44.50 1,166.31 Interest Interest

From the Balance Sheet date Amount Amount
rate range rate range
Disputed dues –
A) Issued on private placement basis (wholesale) –
– MSME - - - - -
Repayable on maturity:
– Others - - - 0.59 0.59
Maturing within 1 years 5.25%-8.75% 3,969.70 4.80%-8.95% 3,677.90
Maturing between 1 years to 3 years 6.25%-9.00% 8,203.00 4.93%-8.95% 6,383.00
There is neither an instance where due date is not specified nor there is any unbilled due. Maturing between 3 years to 5 years 7.90%-8.25% 752.25 6.25%-9.00% 1,565.00
As at 31st March 2022 Maturing beyond 5 years 7.45%-8.48% 4,978.00 7.75%-8.48% 2,978.00
₹ in crores Sub–total at face value 17,902.95 14,603.90
Outstanding for following periods from due date of payment Repayable in Half yearly instalments:
Particulars Less than More than 3
1 - 2 years 2 - 3 years Total Maturing between 1 year to 3 years 6.35% 168.75 6.35% 56.25
1 year years
Maturing between 3 years to 5 years 6.35% 56.25 6.35% 168.75
i) MSME 3.53 - - - 3.53
Sub-total at face value 225.00 225.00
ii) Others 890.49 22.34 28.43 60.49 1,001.75
Total at face value (A) 18,127.95 14,828.90
Total 894.02 22.34 28.43 60.49 1,005.28
B) Issued on retail public issue –
Disputed dues –
Repayable on maturity:
– MSME - - - - -
Maturing within 1 year 9.10%-9.15% 535.56 9.00%-9.05% 405.41
– Others - - - 0.59 0.59
Maturing between 1 year to 3 years - - 9.10%-9.15% 535.56

There is neither an instance where due date is not specified nor there is any unbilled due. Maturing between 3 years to 5 years 9.20%-9.30% 869.15 9.20%-9.30% 869.15
Sub-total at face value (B) 1,404.71 1,810.12
Total at face value (A+B) 19,532.66 16,639.02
Less: Unamortised discounting charges 68.34 28.47
Total amortised cost 19,464.32 16,610.55

300 Empowering Emerging India INTEGRATED REPORT 2022-23 301

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Details of Non-convertible debentures (Unsecured) –: ₹ in crores

₹ in crores
31st March 2023 31st March 2022
As at 31st March 2023 As at 31st March 2022
b) Loans from related parties
Interest Interest
From the Balance Sheet date
rate range
Amount
rate range
Amount Unsecured -
Repayable on maturity: - Inter-corporate deposits (ICDs) 437.00 348.26

Maturing beyond 5 years 8.53% 1,000.00 8.53% 800.00 c) Loans repayable on demand

Total at face value 1,000.00 800.00 Secured –

Less: Unamortised discounting charges 5.05 4.18 - Cash credit facilities with banks 169.97 -
Total amortised cost 994.95 795.82 d) Other loans and advances
Unsecured -
- Inter-corporate deposits (ICDs) other than related parties 500.62 -
Details of Commercial Papers (Unsecured): Total 41,234.06 26,005.17
₹ in crores
As at 31st March 2023 As at 31st March 2022 Borrowings in India 38,683.35 23,827.65
Interest Interest Borrowings outside India 2,550.71 2,177.52
From the Balance Sheet date Amount Amount
rate range rate range Total 41,234.06 26,005.17
Repayable on maturity:
Maturing within 1 year 5.50%-8.26% 4,075.00 4.70% 500.00 Note: There is no borrowings measured at FVTPL or designated at FVTPL.
Total at face value 4,075.00 500.00
Less: Unamortised discounting charges 139.00 3.44 The secured term loans from banks and External Commercial Borrowings are secured by exclusive charges on
receivables under loan contracts having carrying amount of ₹ 30,645.34 crore (March 2022: ₹ 21,830.92 crore).
Total amortised cost 3,936.00 496.56

The borrowings have not been guaranteed by directors or others. Also the Company has not defaulted in
repayment of principal and interest.
Rupee Denominated Secured Bonds overseas (Masala Bonds)
₹ in crores
As at 31st March 2023 As at 31st March 2022 Details of term loans from banks (Secured):
Interest Interest ₹ in crores
From the Balance Sheet date Amount Amount
rate range rate range As at 31st March 2023 As at 31st March 2022
Repayable on maturity: Interest Interest
From the Balance Sheet date Amount Amount
Maturing between 1 year to 3 years 7.40% 350.00 7.40% 350.00 rate range rate range
Total at face value 350.00 350.00 1) Repayable on maturity:
Less: Unamortised discounting charges 0.20 0.22 Maturing within 1 year 5.98%-8.85% 3,020.00 4.40%-6.95% 821.00
Total amortised cost 349.80 349.78 Maturing between 1 year to 3 years - - 5.25%-6.10% 1,100.00
Total for repayable on maturity 3,020.00 1,921.00

Note : 17 2) Repayable in installments:

i) Quarterly -
Borrowings (Other than Debt Securities) Maturing within 1 year 5.15%-8.89% 4,820.25 4.50%-7.35% 3,502.99
₹ in crores Maturing between 1 year to 3 years 5.15%-8.62% 6,767.00 4.50%-6.95% 3,768.70
31st March 2023 31st March 2022
Maturing between 3 years to 5 years 5.75%-8.62% 1,833.35 4.50%-5.80% 451.00
At Amortised cost Sub-Total 13,420.60 7,722.69
a) Term loans ii) Half yearly -
i) Secured - Maturing within 1 year 6.25%-10.50% 3,267.11 4.47%-10.50% 1,431.99
- from banks 30,622.15 15,305.19 Maturing between 1 year to 3 years 6.25%-8.40% 5,238.56 4.47%-10.50% 3,063.58
- External Commercial Borrowings 2,550.71 2,177.52 Maturing beyond 3 years to 5 years 7.45%-8.40% 2,689.03 4.47%-4.90% 249.13
- Associated liabilities in respect of securitisation transactions 6,718.60 8,089.20 Sub-Total 11,194.70 4,744.70
ii) Unsecured - iii) Yearly -
- from banks 85.00 85.00 Maturing within 1 year 7.49%-8.72% 460.00 5.40%-6.85% 380.00
- from other parties 150.01 - Maturing between 1 year to 3 years 7.49%-8.72% 1,649.17 4.46%-6.00% 395.00
Maturing between 3 years to 5 years 8.35%-8.72% 877.50 4.46%-6.00% 141.67
Sub-Total 2,986.67 916.67
Total for repayable in instalments 27,601.97 13,384.06
Total (1+2) (As per contractual terms) 30,621.97 15,305.06

302 Empowering Emerging India INTEGRATED REPORT 2022-23 303

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Details of term loans from banks (Secured): Details of External Commercial Borrowings (USD, Euro & JPY)
₹ in crores ₹ in crores
As at 31st March 2023 As at 31st March 2022
As at 31st March 2023 As at 31st March 2022
Interest Interest
Interest Interest From the Balance Sheet date Amount Amount
From the Balance Sheet date Amount Amount rate range rate range
rate range rate range
Add / Less Unamortised Finance Cost 0.18 (0.13) Maturing within 1 year 6.91% 309.00 8.15%-8.36% 1,250.82

Total Amortised Cost 30,622.15 15,305.19 Maturing between 1 year to 3 years 6.61%-8.11% 2,251.17 6.61%-6.91% 721.87
Maturing beyond 3 years to 5 years - - 6.61% 211.58
The rates mentioned above are the applicable rates as at the year end date linked to MCLR (Marginal Cost of 2,560.17 2,184.27
funds based Lending Rate) and Treasury bills plus spread. Less Unamortised Finance Cost 9.46 6.75
2,550.71 2,177.52
Disclosure of information related to borrowings from banks or financial institutions on the basis of
security of current assets
The quarterly returns or statements comprising (book debt statements and other stipulated financial Details of associated liabilities related to Securitisation transactions
₹ in crores
information) filed by the Company with such banks are in agreement with the books of account of the Company
As at 31st March 2023 As at 31st March 2022
except for certain differences which has been duly reconciled and presented here below.
Interest Interest
From the Balance Sheet date Amount Amount
rate range rate range
Summary of reconciliation Maturing within 1 year 3.70%-7.55% 3,467.94 3.70%-8.10% 4,051.07
₹ in crores
Maturing between 1 year to 3 years 3.76%-7.55% 2,921.26 3.70%-8.10% 3,681.57
Quarter ended
Maturing between 3 years to 5 years 3.70%-7.55% 329.40 3.70%-4.76% 356.45
Year ended 31st March 2023 June 2022 September 2022 December 2022 March 2023
Maturing beyond 5 years - - 4.76% 0.11
Value as per quarterly returns / statements filed with 3,289.51 3,289.57 2,464.49 2,352.97
Banks 6,718.60 8,089.20
Difference due to future interest considered in Book - - - - Less Unamortised Finance Cost - -
debt statements 6,718.60 8,089.20
Difference in Overdue balance due to credits not 36.43 32.61 22.51 9.55
considered in returns
Details of Unsecured term loans from banks
Ind AS adjustments related to Effective Interest Rate 13.81 13.75 8.60 6.58 ₹ in crores
(EIR) / Amortised cost
As at 31st March 2023 As at 31st March 2022
Value as per Ind AS books of account 3,339.75 3,335.93 2,495.60 2,369.10
Interest Interest
From the Balance Sheet date Amount Amount
rate range rate range
Repayable on maturity:
₹ in crores
Maturing within 1 year 8.05% 85.00 4.98% 85.00
Quarter ended
Total 85.00 85.00
Year ended 31st March 2022 June 2021 September 2021 December 2021 March2022
Less Unamortised Finance Cost - -
Value as per quarterly returns / statements filed with 2,739.54 2,739.48 2,739.57 2,739.50
Banks Total Amortised Cost 85.00 85.00
Difference due to future interest considered in Book (100.13) (97.18) (95.66) (83.58)
debt statements
Details of Unsecured term loans from others
Difference in Overdue balance due to credits not 70.59 58.28 44.75 29.38
As at 31st March 2023 As at 31st March 2022
considered in returns
Ind AS adjustments related to Effective Interest Rate 4.07 4.53 5.03 5.29 Interest Interest
From the Balance Sheet date Amount Amount
rate range rate range
(EIR) / Amortised cost
Value as per Ind AS books of account 2,714.07 2,705.11 2,693.69 2,690.59 Repayable on maturity:
Maturing between 1 year to 3 years 8.10% 150.00 -
Total 150.00 -
Add Unamortised Finance Cost 0.01 -
Total Amortised Cost 150.01 -

304 Empowering Emerging India INTEGRATED REPORT 2022-23 305

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Details of Loans from related parties (Unsecured) – Inter–corporate deposits (ICDs) Note : 19
₹ in crores
As at 31st March 2023 As at 31st March 2022 Subordinated liabilities
Interest Interest ₹ in crores
From the Balance Sheet date Amount Amount
rate range rate range 31st March 2023 31st March 2022
Repayable on maturity: At Amortised cost (Unsecured)
Maturing within 1 year 5.40%-7.85% 915.12 - - Subordinated redeemable non–convertible debentures – private placement 1,028.73 719.08
Maturing between 1 year to 3 years 6.25% 22.50 5.40%-6.25% 348.26 Subordinated redeemable non–convertible debentures – retail public issue 2,413.40 2,410.77
Total 937.62 348.26 Total 3,442.13 3,129.85
Less Unamortised Finance Cost - - Subordinated liabilities in India 3,442.13 3,129.85
Total Amortised Cost 937.62 348.26 Subordinated liabilities outside India - -
Total 3,442.13 3,129.85

Details of Loans repayable on demand (Secured) - Cash credit facilities with banks Note: There is no Subordinated liabilities measured at FVTPL or designated at FVTPL.
₹ in crores
As at 31st March 2023 As at 31st March 2022
Details of Subordinated liabilities (at Amortised cost) – Unsecured subordinated redeemable non–
Interest Interest
From the Balance Sheet date
rate range
Amount
rate range
Amount convertible debentures
Repayable on maturity:
₹ in crores
Maturing within 1 year 8.45% 169.97 - -
As at 31st March 2023 As at 31st March 2022
Total 169.97 -
Interest Interest
From the Balance Sheet date Amount Amount
rate range rate range
A) Issued on private placement basis -
Note : 18
Repayable on maturity:
Deposits Maturing within 1 year 9.50%-9.70% 127.80 9.80%-10.15% 70.00
₹ in crores Maturing between 1 year to 3 years 8.90%-9.60% 390.00 9.18%-9.70% 342.80
31st March 2023 31st March 2022 Maturing between 3 years to 5 years - 8.90%-9.10% 175.00
At amortised cost Maturing beyond 5 years 7.35%-8.20% 512.90 7.35% 132.90
Deposits (Unsecured) Sub-total at face value (A) 1,030.70 720.70
- Public deposits * 5,524.60 8,426.19 B) Issued on retail public issue -
Total 5,524.60 8,426.19 Repayable on maturity:
Maturing within 1 year 8.44%-8.80% 12.34 - -
Note: There is no deposits measured at FVTPL or designated at FVTPL. Maturing between 1 year to 3 years 7.75%-7.85% 59.32 7.75%-8.80% 71.66
*as defined in chapter II, para 3 (xiii) of Master directions - Non-Banking Financial Companies Acceptance of Maturing between 3 years to 5 years 7.90%-9.00% 1,380.25 8.53%-9.00% 933.01
Public Deposits (Reserve Bank) Directions, 2016 as issued by RBI. Maturing beyond 5 years 7.95%-9.50% 980.84 7.90%-9.50% 1,428.08
Sub-total at face value (B) 2,432.75 2,432.75
There are no amounts that are due and remain unpaid to Investor Education and Protection Fund as at the Total at face value (A+B) 3,463.45 3,153.45
close of the year.
Less: Unamortised discounting charges 21.32 23.60

Details of Deposits (Unsecured) – Public deposits Total amortised cost 3,442.13 3,129.85
₹ in crores
As at 31st March 2023 As at 31st March 2022 The Company has used the borrowings from banks and financial institutions as per note numbers 16 to 19 for
Interest Interest the specific purpose for which these were availed.
From the Balance Sheet date Amount Amount
rate range rate range
Repayable on maturity: In respect of all the borrowings, there is no default in payment of either principal or interest.
Maturing within 1 year 4.95% - 9.15% 1,836.02 4.95% - 9.15% 4,769.74
The Company has not been declared as wilful defaulter by any bank or financial Institution or consortium
Maturing between 1 year to 3 years 5.65% - 9.15% 3,269.40 5.30% - 9.15% 3,141.74
thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
Maturing beyond 3 years 5.90% - 9.15% 436.41 5.90% - 8.45% 535.58
Total at face value 5,541.83 8,447.06
Less: Unamortised discounting charges 17.23 20.87
Total amortised cost 5,524.60 8,426.19

306 Empowering Emerging India INTEGRATED REPORT 2022-23 307

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 20 Note : 23
Other financial liabilities Equity Share capital
₹ in crores ₹ in crores
31st March 2023 31st March 2022 31st March 2023 31st March 2022
Interest accrued but not due on borrowings 1,730.03 1,863.05 Authorised:
Unclaimed dividends # 0.60 0.58 250,00,00,000 (31st March 2022: 250,00,00,000) Equity shares of ₹ 2/- each 500.00 500.00
Unclaimed matured deposits and interest accrued thereon # 4.88 11.23 50,00,000 (31st March 2022: 50,00,000) Redeemable preference shares of ₹ 100/- 50.00 50.00
Deposits / advances received against loan agreements 88.79 89.54 each
Insurance premium payable 3.78 3.21 Issued, Subscribed and paid–up:
Salary, Bonus and performance payable 7.35 8.14 123,55,29,920 (31st March 2022: 123,55,29,920) Equity shares of ₹ 2/- each fully paid 247.11 247.11
up
Provision for expenses 175.79 128.73
Less : 19,31,449 (31st March 2022: 25,74,163) Equity shares of ₹ 2/- each fully paid up 0.39 0.51
Lease liabilities (refer note 41) 349.61 185.26 issued to ESOS Trust but not yet allotted to employees, including fresh equity shares
Others 23.45 26.43 allotted to ESOS Trust under rights issue during the year
Total 2,384.28 2,316.17 Adjusted Issued, Subscribed and paid–up Share capital 246.72 246.60

# There are no amounts due for transfer to the Investor Education and Protection Fund under Section 125 of
Companies Act, 2013 as at the year end.
As at 31st March 2023 As at 31st March 2022
No. of shares ₹ in crores No. of shares ₹ in crores
Note : 21
a) Reconciliation of number of equity shares and
Provisions amount outstanding:
₹ in crores Issued, Subscribed and paid-up:
31st March 2023 31st March 2022 Balance at the beginning of the year 1,23,55,29,920 247.11 1,23,55,29,920 247.10
Provision for employee benefits Add: Fresh allotment of shares: - - - -
- Gratuity (refer note 37) 22.15 39.21 Balance at the end of the year 1,23,55,29,920 247.11 1,23,55,29,920 247.10
- Leave encashment 84.00 75.32 
Less: Shares issued to ESOS Trust but not yet 19,31,449 0.39 25,74,163 0.50
- Bonus, incentives and performance pay 154.16 106.65 allotted to employees
Provision for loan commitment 0.43 0.17 Adjusted Issued, Subscribed and paid–up 1,23,35,98,471 246.72 1,23,29,55,757 246.60
Total 260.74 221.35 Share capital
b) Number of equity shares held by holding
company or ultimate holding company including
Note : 22 shares held by its subsidiaries / associates:
Holding company: Mahindra & Mahindra Limited 64,43,99,987 128.88 64,43,99,987 128.88
Other non-financial liabilities
Percentage of holding (%) 52.16% 52.16%
₹ in crores
31st March 2023 31st March 2022 c) Shareholders holding more than 5 percent of
the aggregate shares:
Deferred subvention income 22.49 12.81
Mahindra & Mahindra Limited 64,43,99,987 128.88 64,43,99,987 128.88
Statutory dues and taxes payable 89.88 84.50
Percentage of holding (%) 52.16% 52.16%
Others * 11.71 10.47
Total 124.08 107.78
d) Terms / rights attached to equity shares :
* Others include monies adjusted from share capital and other equity on account of shares held by MMFSL ESOP Trust
The Company has only one class of equity shares having a par value of ₹ 2/- per share. Each holder of equity
pending transfer to the eligible employees and lease rental advances.
shares is entitled to one vote per share. The dividend proposed by the board of directors and approved
by the shareholders in the annual general meeting is paid in Indian rupees. In the event of liquidation of
the Company, the holders of equity shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

308 Empowering Emerging India INTEGRATED REPORT 2022-23 309

 Business
Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

e) Shareholding of Promoters Dividend distributions made and proposed

i) Dividend on equity shares declared and paid during the year
Shares held by promoters as at 31st March Shares held by promoters as at 31st March
2023 2022
Name of the Promoter % Change % Change ₹ in crores
% of total % of total
No. of Shares during the No. of Shares during the
shares shares 31st March 2023 31st March 2022
year year
Dividend paid 444.79 98.84
Mahindra & Mahindra Limited 64,43,99,987 52.16% - 64,43,99,987 52.16% -
Profit for the relevant year 988.75 335.15
Other Equity Dividend as a percentage of profit for the relevant year 45.0% 29.5%

Description of the nature and purpose of Other Equity (refer Statement of Changes in Equity) :
ii) Dividends proposed for approval at the annual general meeting (not recognised as a liability as at respective
Statutory reserve as per Section 45–IC of the RBI Act, 1934 reporting date)
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through
transfer of specified percentage of net profit every year before any dividend is declared. The reserve fund can ₹ in crores
be utilised only for limited purposes as specified by RBI from time to time and every such utilisation shall be 31st March 2023 31st March 2022
reported to the RBI within specified period of time from the date of such utilisation.
Face value per share (Rupees) 2.00 2.00
Dividend percentage 300% 180%
Capital redemption reserve (CRR)
Dividend per share (Rupees) 6.00 3.60
Capital redemption reserve represents reserve created pursuant to Section 55 (2) (c) of the Companies Act,
Total Dividend on Equity shares (a) 741.32 444.79
2013 by transfer of an amount equivalent to nominal value of the Preference shares redeemed. The CRR may
be utilised by the Company, in paying up unissued shares of the Company to be issued to the members of the Profit after tax for the relevant year (b) 1,984.32 988.75
Company as fully paid bonus shares in accordance with the provisions of the Companies Act, 2013. Dividend proposed as a percentage of profit after tax (a/b) 37.4% 45.0%

Securities premium The dividend declared or paid during the year by the company is in compliance with section 123 of the Companies
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited Act, 2013, as applicable.
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
Note : 24
General reserve
Interest income
General reserve is created through annual transfer of profits at a specified percentage in accordance with ₹ in crores
applicable regulations under the erstwhile Companies Act, 1956. Consequent to introduction of the Companies 31st March 2023 31st March 2022
Act, 2013, the requirement to mandatorily transfer specified percentage of net profits to General reserve has
On financial instruments measured at Amortised cost (refer note 2.6)
been withdrawn. However, the amount previously transferred to the General reserve can be utilised only in
accordance with the specific requirements of the Companies Act, 2013. Interest on loans 9,847.25 8,831.98
Income from bill discounting 102.00 77.61
Employee stock options outstanding Interest income from investments 231.64 142.49
The Employee Stock Options outstanding represents amount of reserve created by recognition of compensation Interest on term deposits with banks 210.08 181.36
cost at grant date fair value on stock options vested but not exercised by employees and unvested stock On financial instruments measured at fair value through OCI (refer note 2.11
options in the Statement of profit and loss in respect of equity-settled share options granted to the eligible (b))
employees of the Company and its subsidiaries in pursuance of the Employee Stock Option Plan. Interest income from investments in debt instrument 291.60 242.17
Total 10,682.57 9,475.61
Retained earnings
Retained earnings or accumulated surplus represents total of all profits retained since Company’s inception. Note: There is no loan asset measured at FVTPL.
Retained earnings are credited with current year profits, reduced by losses, if any, dividend pay-outs, transfers
to General reserve or any such other appropriations to specific reserve. Note : 25
Fees, charges and commission income
₹ in crores
31st March 2023 31st March 2022
Service charges and other fees income 139.22 72.74
Fees, commission / brokerage received from mutual fund distribution/other products 10.90 13.46
Collection fees related to transferred assets under securitisation transactions 17.84 19.09
Total 167.96 105.29

310 Empowering Emerging India INTEGRATED REPORT 2022-23 311

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 26 Note : 29
Net gain / (loss) on fair value changes Impairment on financial instruments
₹ in crores ₹ in crores
31st March 2023 31st March 2022 31st March 2023 31st March 2022
Net gain / (loss) on financial instruments at FVTPL On financial instruments measured at Amortised cost
On trading portfolio Bad debts and write offs 2,213.36 2,513.07
- Investments (1.37) 0.09 Loans (1,212.71) (144.71)
Others – Mutual fund units 6.96 50.67 Investments (0.64) 1.21
Total Net gain / (loss) on financial instruments at FVTPL 5.59 50.76 Loan commitment 0.26 (1.01)
Fair value changes : Trade receivables and other contracts (1.04) (0.26)
- Realised 5.59 39.06 Total 999.23 2,368.30
- Unrealised - 11.70
Total Net gain / (loss) on financial instruments at FVTPL 5.59 50.76 Note: There are no financial instruments measured at FVOCI.

Note: Fair value changes in this schedule are other than those arising on account of accrued interest income/ Note : 30
expense.
Employee benefits expenses
Note : 27 ₹ in crores
31st March 2023 31st March 2022
Other income
Salaries and wages 1,457.60 1,057.11
₹ in crores
Contribution to provident funds and other funds 94.43 83.26
31st March 2023 31st March 2022
Share based payments to employees 4.55 9.20
Net gain on derecognition of property, plant and equipment 2.89 1.27
Staff welfare expenses 27.69 21.83
Net gain on sale investments measured at amortised cost 0.73 -
Total 1,584.27 1,171.40
Dividend income from Equity investments in subsidiaries 4.12 2.47
Income from shared services 119.29 56.90
Others 0.26 0.19 Note : 31
Total 127.29 60.83
Depreciation, amortisation and impairment
₹ in crores
Note : 28
31st March 2023 31st March 2022
Finance costs Depreciation on Property, Plant and Equipment # (refer note 11) 104.65 67.51
₹ in crores Amortisation and impairment of intangible assets (refer note 12) 12.47 11.85
31st March 2023 31st March 2022 Depreciation on Right of Use Asset (refer note 11 and 41) 70.11 47.47
On financial liabilities measured at Amortised cost Total 187.23 126.83
Interest on deposits 524.74 766.91
Interest on borrowings 2,135.60 1,421.33 # During the year ended 31 st March 2022, the Company has revised the estimate of useful life considered for
Interest on debt securities 1,584.36 1,394.91 depreciating the vehicles under operating lease from useful life as specified in Schedule II of the Companies Act,
Interest on subordinated liabilities 291.15 283.35
2013, as amended, to useful life representing the lease period of respective lease agreements. The resultant
change had an additional depreciation charge of ₹ 12.20 crore which was included above under the head
Net loss / (gain) in fair value of derivative financial instruments (10.77) 7.99
“Depreciation on Property, Plant and Equipment” for the year ended 31 st March 2022.
Interest expense on lease liabilities (refer note 41) 21.79 14.36
Others 29.85 31.33
Total 4,576.72 3,920.18

Note: There are no financial liabilities measured at FVTPL.

312 Empowering Emerging India INTEGRATED REPORT 2022-23 313

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 32 Note : 35
Other expenses Accumulated Other Comprehensive Income
₹ in crores ₹ in crores
31st March 2023 31st March 2022 31 March 2023 31 March 2022
Rent 14.32 17.13 A) Items that will not be reclassified to profit or loss
Rates and taxes, excluding taxes on income 6.67 4.82 Balance at the beginning of the year 21.46 1.99
Electricity charges 16.14 13.46 – Net gain / (loss) on equity instruments through OCI – 26.01
Repairs and maintenance 9.83 5.05 – Income tax relating to items that will not be reclassified to profit or loss – (6.54)
Communication costs 33.92 29.37 Balance at the end of the year: Subtotal (A) 21.46 21.46
Printing and stationery 12.58 9.25 B) Items that will be reclassified to profit or loss
Advertisement and publicity 26.78 15.36 Balance at the beginning of the year (57.30) (57.82)
Directors' fees, allowances and expenses 2.97 2.29 – Net gain / (loss) on debt instruments through OCI (88.82) 0.70
Auditor's fees and expenses - – The effective portion of gains and loss on hedging instruments in a cash flow (6.34) –
- Audit fees 1.41 1.33 hedge;
- Other services 0.36 0.41 – Income tax relating to items that will be reclassified to profit or loss 23.95 (0.18)
- Reimbursement of expenses 0.04 0.05 Balance at the end of the year: Subtotal (B) (128.50) (57.30)
Legal and professional charges 112.18 119.78 Accumulated Other Comprehensive Income (A + B) (107.04) (35.84)
Insurance 51.03 37.79
Manpower outsourcing cost 182.07 159.81
Note : 36
Donations 0.39 - Employee Stock Option Plan
Corporate Social Responsibility (CSR) expenses (refer note 45) 44.50 29.48 The Company had allotted 48,45,025 Equity shares (face value of ₹ 2/- each) under Employee Stock Option
Conveyance and travel expenses 123.51 82.39 Scheme 2010 at par on 3 February 2011 to Mahindra and Mahindra Financial Services Limited Employees’ Stock
Other expenses 237.12 202.50 Option Trust (“the Trust”) set up by the Company. The Trust holds these shares for the benefit of the employees
Total 875.82 730.27 and issues them to the eligible employees as per the recommendation of the Compensation Committee.

Pursuant to the Rights issue of one equity share for every equity share held as on record date, at an issue price
Note : 33 of ₹ 50 per Equity Share (including a premium of ₹ 48 per Equity Share), made by the Company, 20,63,662
equity shares have been allotted to the Trust in respect of its rights entitlement on 17 August 2020. All the
Exceptional items
option holders (beneficiaries) under existing grants have automatically became entitled to additional options at
₹ in crores
₹ 50/- per option as rights adjustment and accordingly, the number of outstanding options stand augmented
31st March 2023 31st March 2022
in the same ratio as the rights issue. All the terms and conditions applicable to these additional options issued
Impairment loss provision on equity investment in Mahindra Ideal Finance Limited (MIFL), (54.51) - under rights issue shall remain same as original grant.
a subsidiary in Sri Lanka (refer note 61 )
Total (54.51) - Upon exercise of stock options, including additional options issued as per Rights issue, under the scheme
by eligible employees, the Trust had issued 57,62,513 equity shares to employees up to 31 st March 2023
(31 st March 2022: 51,19,799 equity shares), of which 6,42,714 equity shares (31 st March 2022: 9,90,139
Note : 34
equity shares) were issued during the current year. This has resulted in an increase in equity share capital by
Earning Per Share (EPS) ₹ 0.13 crore for the year ended 31 st March 2023 (31 st March 2022: ₹ 0.20 crore).

31st March 2023 31st March 2022 a) The terms and conditions of the Employees Stock Option Scheme 2010 are as under:
Profit for the year (₹ in crore) 1,984.32 988.75 Particulars Terms and conditions
Weighted average number of Equity Shares used in computing basic EPS 1,23,31,47,111 1,23,22,87,519 Type of arrangement Employees share based payment plan administered through ESOS Trust
Effect of potential dilutive Equity Shares 12,09,941 14,58,085 Contractual life 3 years from the date of each vesting
Weighted average number of Equity Shares used in computing diluted EPS 1,23,43,57,052 1,23,37,45,604 Number of vested options exercisable Minimum of 50 or number of options vested whichever is lower
Basic Earnings per share (₹) (Face value of ₹ 2/– per share) 16.09 8.02 Method of settlement By issue of shares at exercise price
Diluted Earnings per share (₹) 16.08 8.01 Vesting conditions 20% on expiry of 12 months from the date of grant
20% on expiry of 24 months from the date of grant
20% on expiry of 36 months from the date of grant
20% on expiry of 48 months from the date of grant
20% on expiry of 60 months from the date of grant

314 Empowering Emerging India INTEGRATED REPORT 2022-23 315

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

b) Options granted during the year: Accordingly, since each vest has been considered as a separate grant, the model considers the volatility for
During the year ended 31 st March 2023, the Company has not granted any stock options (31 st March periods, corresponding to the expected lives of different vests, prior to the grant date. Volatility has been
2022: nil) to the employees under the Employees’ Stock Option Scheme 2010. calculated based on the daily closing market price of the Company’s stock price on NSE over these years.
Similar approach was followed in determination of expected volatility based on historical volatility for all
the grants under the scheme.
c) Summary of stock options:
₹ in crores In respect of stock options granted under Employee Stock Option Scheme 2010, the accounting is
As at 31st March 2023 As at 31st March 2022 done as per the requirements of Ind AS 102 - Share-based payment. Consequently, ₹ 4.55 crore (31 st
Weighted Weighted March 2022: ₹ 9.20 crore) has been included under ‘Employee Benefits Expense’ as ‘Share-based
No. of stock average No. of stock average payment to employees’ based on respective grant date fair value, after adjusting for reversals on
Particulars
options exercise price options exercise price
(₹) # (₹) # account of options forfeited. The amount includes cost reimbursements to the holding company of ₹
1.05 crore (31 st March 2022: ₹ 2.70 crore) in respect of options granted to employees of the Company
Options outstanding at the beginning of the year 2,167,340 26.91 3,354,484 2.00 and excludes net recovery of ₹ 0.22 crore (31 st March 2022: ₹ 0.30 crore) from its subsidiaries for
Options granted during the year - - - - options granted to their employees.

Adjustment pertaining to Rights Issue - - - - Note : 37

Options forfeited / lapsed during the year 47,783 26.46 189,050 26.00 Employee benefits
Options expired during the year 41,860 31.62 7,955 28.37 General description of defined benefit plans
Options exercised during the year 642,714 26.63 990,139 25.20 Gratuity
The Company provides for the gratuity, a defined benefit retirement plan covering qualifying employees. The
Options outstanding at the end of the year 1,434,983 26.91 2,167,340 26.91
plan provides for lump sum payments to employees upon death while in employment or on separation from
Options vested but not exercised at the end of the year 696,553 27.87 611,688 29.21 employment after serving for the stipulated period mentioned under The Payment of Gratuity Act, 1972. The
Company makes annual contribution to the Gratuity scheme administered by the Life Insurance Corporation
# Adjusted for additional options issued in the ratio of one equity share for every one equity share held under
of India through its Gratuity fund.
Rights issue made by the Company during August 2020. The options issued under ESOP scheme 2010 are
exercisable at ₹ 2/- per option and adjustment options issued under Rights issue are exercisable at ₹ 50/- each,
Post retirement medical cover
including premium of ₹ 48/- per option (being the issue price under Rights allotment).
The Company provides for post retirement medical cover to select grade of employees to cover the retiring
employee and their spouse up to a specified age through Mediclaim policy on which the premiums are paid by
d) Information in respect of options outstanding: the Company. The eligibility of the employee for the benefit as well as the amount of medical cover purchased
₹ in crores is determined by the grade of the employee at the time of retirement.
As at 31st March 2023 As at 31st March 2022

No. of stock
Weighted
No. of stock
Weighted Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which
Exercise price average average are detailed below:
options options
remaining life remaining life
i) At ₹ 2.00 per option 690,412 35 months 1,042,783 43 months Asset volatility -
ii) At ₹ 50.00 per option 744,571 34 months 1,124,557 42 months
The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan
1,434,983 2,167,340 assets underperform compared to this yield, this will create or increase a deficit. The defined benefit plans may
hold equity type assets, which may carry volatility and associated risk.
e) Average share price at recognised stock exchange on the date of exercise of the option is as under:
Change in bond yields -
Year ended 31st March 2023 Year ended 31st March 2022
A decrease in government bond yields will increase plan liabilities, although this is expected to be partially
Date of exercise Weighted average Date of exercise Weighted average offset by an increase in the value of the plan’s investment in debt instruments.
share price (₹)# share price (₹)
01 April 2022 to 215.21 01 April 2021 to 158.78 Variability in withdrawal rates -
31st March 2023 31st March 2022
If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits
will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the
f) Determination of expected volatility
resignation date.
The measure of volatility used in the Black-Scholes option pricing model is the annualised standard
deviation of the continuously compounded rates of return on the stock over a period of time. Regulatory Risk -
Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended
The determination of expected volatility is based on historical volatility of the stock over the most recent
up-to-date). There is a risk of change in the regulations requiring higher gratuity payments (e.g. raising the
period that is generally commensurate with the expected life of the option being valued. The period
present ceiling of ₹ 20,00,000, raising accrual rate from 15/26 etc.).
considered for volatility is adequate to represent a consistent trend in the price movements and the
movements due to abnormal events are evened out.

316 Empowering Emerging India INTEGRATED REPORT 2022-23 317

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Inflation risk - Details of defined benefit plans as per actuarial valuation are as
The present value of some of the defined benefit plan obligations are calculated with reference to the future follows:
Funded Plan
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s
liability. The post retirement medical benefit obligation is sensitive to medical inflation and accordingly, an Gratuity
Particulars
increase in medical inflation rate would increase the plan’s liability. Year ended 31 March
2023 2022
Life expectancy - Contributions by employer 44.50 4.81
The present value of defined benefit plan obligation is calculated by reference to the best estimate of the Adjustment due to change in opening balance of Plan assets 5.51 5.04
mortality of plan participants, both during and after the employment. An increase in the life expectancy of the Actual Benefits paid (11.48) (7.41)
plan participants will increase the plan’s liability.
Closing Fair value of plan assets 103.59 65.06
V. Net defined benefit obligation
If actual mortality rates are higher than assumed mortality rate assumption than the gratuity benefits will
be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of Defined benefit obligation 125.73 104.26
cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth Fair value of plan assets 103.58 65.05
and discount rate. Surplus/(Deficit) (22.15) (39.21)
Current portion of the above - -
Details of defined benefit plans as per actuarial valuation are as Non current portion of the above (22.15) (39.21)
follows: VI. Expected contribution for the next reporting year 16.31 19.85
Funded Plan
Gratuity
Particulars
Year ended 31 March
Actuarial assumptions and Sensitivity
2023 2022 Funded Plan
I. Amounts recognised in the Statement of Profit & Loss Gratuity
Particulars
Year ended 31 March
Current service cost 13.21 11.21
2023 2022
Net Interest cost 2.47 1.92
I. Actuarial assumptions
Past service cost - -
Discount Rate (p.a.) 7.50% 7.32%
Adjustment due to change in opening balance of Plan assets (5.51) (5.04)
Attrition rate 22.00 for age up 25.52 for age up
Total expenses included in employee benefits expense 10.17 8.09 to 30, 16.00for to 30, 16.17 for
II. Amount recognised in Other Comprehensive income age 31-44, 8.00 age 31-44, 5.98
Remeasurement (gains)/losses: for 45 and above for 45 and above
Expected rate of return on plan assets (p.a.) 7.32% 6.91%
a) Actuarial (gains)/losses arising from changes in -
Rate of Salary increase (p.a.) 7.00% 7.00%
- financial assumptions (17.27) (3.10)
In-service Mortality Indian Assured Indian Assured
- experience adjustments - - Lives Mortality Lives Mortality
b) Return on plan assets, excluding amount included in net interest expense/ - - (2012-14) (2012-14)
(income) Ultimate Ultimate
Total amount recognised in other comprehensive income (17.27) (3.10) II. Quantitative sensitivity analysis for impact of significant assumptions on
III. Changes in the defined benefit obligation defined benefit obligation are as follows:
Opening defined benefit obligation 104.26 95.44 One percentage point increase in discount rate (7.04) (8.47)
Add/(less) on account of business combination/transfers One percentage point decrease in discount rate 7.16 5.65
Current service cost 13.21 11.21 One percentage point increase in Salary growth rate 7.16 5.60
Past service cost - - One percentage point decrease in Salary growth rate (7.14) (8.55)
Interest expense 7.63 6.59 III. Maturity profile of defined benefit obligation
Remeasurement (gains)/losses arising from changes in - Within 1 year 24.23 19.24
- demographic assumptions 0.19 0.56 Between 1 and 5 years 120.21 95.92
- financial assumptions (1.52) (5.36)
- experience adjustments 13.44 3.23 The estimate of future salary increases, considered in actuarial valuation, considers inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
Benefits paid (11.48) (7.41)
Closing defined benefit obligation 125.73 104.26 The plan assets have been primarily invested in government securities and corporate bonds.
IV. Change in the fair value of plan assets during the year
Opening Fair value of plan assets 65.06 62.62 The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations.
Interest income 5.16 4.67 Actuarial valuations involve making various assumptions that may differ from actual developments in the future.
Expected return on plan assets (5.16) (4.67) These includes the determination of the discount rate, future salary increases and mortality rate. Due to these

318 Empowering Emerging India INTEGRATED REPORT 2022-23 319

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions As at 31st March 2023
are reviewed at each reporting date. The present value of the defined benefit obligation and the related current ₹ in crores
service cost and planned service cost were measured using the projected unit cost method. Balance Relationship
Nature of
outstanding as with the Struck
transactions
The Company’s contribution to provident fund, superannuation fund and national pension scheme aggregating Name of Struck off Company at 31st March off company,
with struck–off
2023 if any, to be
to ₹ 70.23 crore (31 st March 2022: ₹ 59.17 crore) has been recognised in the Statement of profit and loss Company
(₹ in crore) disclosed
under the head Employee benefits expense.
25 SPXPRESS LOGISTICS PRIVATE LIMITED Receivables 0.07 External
26 SLTT INDIA PRIVATE LIMITED Receivables 0.03 External
Note : 38
27 DHARAA MOBILITY PVT LTD Receivables - External
Additional disclosures 28 AUTO WORLD PRIVATE LIMITED Receivables 0.83 External
i) During the financial years ended 31 st March 2023 and 31 st March 2022, the Company has not granted any 29 RA GLOBALCITY HOUSING PRIVATE LIMITED Receivables - External
loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined 30 ARSH BUILDWELL PRIVATE LIMITED Receivables - External
under the Companies Act, 2013), either severally or jointly with any other person (a) repayable on demand 31 ASHI INFRAPROJECTS AND ASSOCIATES PRIVATE LIMITED Receivables - External
or (b) without specifying any terms or period of repayment.
32 VENHAN TECHNOLOGIES PRIVATE LIMITED Receivables 0.18 External
33 SAMBODHI TECH SOLUTIONS PRIVATE LIMITED Receivables 0.13 External
ii) There is no Benami Property held by the Company and there is no proceedings have been initiated or
pending against the Company for holding any benami property under the Benami Transactions (Prohibition) 34 CZONE ENGINEERS PRIVATE LIMITED Receivables 0.05 External
Act, 1988 (45 of 1988) and rules made thereunder. 35 M/S. ASHWA ARTS PRIVATE LIMITED Receivables 0.01 External
36 CONSOLE CARGO LOGISTICS SERVICES (I) PRIVATE LIMITED Receivables 0.07 External
iii) Disclosure of transactions with the companies struck off under section 248 of Companies Act, 2013 or 37 ZAFCON ENGINEERING PRIVATE LIMITED Receivables 0.04 External
section 560 of Companies Act, 1956. 38 XPERTO MARKETING SOLUTION PVT LTD Receivables - External
39 RAMA TENT HOUSE PRIVATE LIMITED Receivables 0.09 External
As at 31st March 2023 40 MILLPOND HUMAN RESOURCE PRIVATE LIMITED Receivables 0.06 External
₹ in crores
41 4 SQUARE FITNESS PRIVATE LIMITED Receivables 0.02 External
Balance Relationship
Nature of
outstanding as with the Struck 42 PARVATHI LIFE SCIENCES (OPC) PRIVATE LIMITED Receivables 0.01 External
transactions
Name of Struck off Company
with struck–off
at 31st March off company, 43 SHIRIDI SRISAI SOLUTIONS PVT LTD Receivables 0.06 External
2023 if any, to be
Company
(₹ in crore) disclosed 44 DEVBHUMI AVIATION PVT LTD Receivables - External

1 ASHWANI ENTERPRISES PRIVATE LIMITED Receivables 0.04 External 45 VH SQUARE HEALTHCARE PVT LTD Receivables 0.08 External

2 COCOWINGS ENTERPRISES PRIVATE LIMITED Receivables 0.03 External 46 SHREE BIO CROP INDIA PRIVATE LIMITED Receivables - External

3 MANSAROVAR INDIA AQUA BEVERAGES PRIVATE LIMITED Receivables 0.01 External 47 LIANCE CONSULTANT&ENGINEERS PRIVATE LIMITED Payables 0.00 External

4 SATHESRI AGRO PRODUCTS PRIVATE LIMITED Receivables 0.06 External 48 DREAMS BROKING PRIVATE LIMITED Shares held 476* External
by stuck off
5 BRILLIANT RISIE PRIVATE LIMITED Receivables 0.07 External Company
6 ALCROOKS AND COOK PRIVATE LIMITED Receivables - External 49 UNICKON FINCAP PRIVATE LIMITED Shares held 689* External
7 OM DHAR ENGINEERING PRIVATE LIMITED Receivables - External by stuck off
8 KIRAN ENVIRO-TECH ENERGY PRIVATE LIMITED Receivables 0.02 External Company

9 M_S GARHWAL AIRCON SERVICES PRIVATE LIMITED Receivables 0.07 External * Number of Equity Shares
10 IGI CORPORATION PVT LTD Receivables - External
11 MRA REFINO PRIVATE LIMITED Receivables 0.02 External As at 31st March 2022
₹ in crores
12 GR AUDITYA RENEWABLE ENERGIES PRIVATE LIMITED Receivables 0.06 External
Balance Relationship
13 JCR INFRABUILT PRIVATE LIMITED Receivables 0.04 External Nature of
outstanding as with the Struck
transactions
14 NOVOCON SOLUTION PVT LTD Receivables 0.00 External Name of Struck off Company at 31st March off company,
with struck–off
2022 if any, to be
15 DEVINE DEVBUILD PRIVATE LIMITED Receivables - External Company
(₹ in crores) disclosed
16 ENGINEERS REALTY PRIVATE LIMITED Receivables - External 1 CONSOLE CARGO LOGISTICS SERVICES (I) PRIVATE LIMITED Receivables 0.09 External
17 PUNEETH TECHNO PROJECTS PRIVATE LIMITED Receivables 0.03 External 2 ANUSHREE CONSTROTECH PRIVATE LIMITED Receivables - External
18 PROBUS INFRATECH PRIVATE LIMITED Receivables 0.07 External 3 SHAN STRATEGIC SOLUTIONS PRIVATE LIMITED Receivables - External
19 ATCOM INFRATECH PRIVATE LIMITED Receivables 0.04 External 4 HIMHYDRO CONSTRUCTION PRIVATE LIMITED Receivables - External
20 GOLUDEV INFRASTRUCTURE PRIVATE LIMITED Receivables 0.02 External 5 G. V. FOODS PRIVATE LIMITED Receivables - External
6 SINGHAL BRICKS PRIVATE LIMITED Receivables - External
21 SSNG BUSINESS PRIVATE LIMITED Receivables - External
7 MODESTY INDUSTRIES PRIVATE LIMITED Receivables 0.01 External
22 NAVADHARA SUPER MARKET PRIVATE LIMITED Receivables - External
8 RA GLOBALCITY HOUSING PRIVATE LIMITED Receivables (0.00) External
23 NIRBAN LOGISTICS PRIVATE LIMITED Receivables - External
9 GRACIOUS BOTTLES PRIVATE LIMITED Receivables 0.01 External
24 ASVRJ LOGISTIC PVT LTD Receivables 0.01 External 10 SARASWATIPUR TEA AND INDUSTRIES PVT.LTD. Receivables 0.00 External

320 Empowering Emerging India INTEGRATED REPORT 2022-23 321

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

As at 31st March 2022 exclusive charge on present and/or future receivables under Loan contracts/Hire Purchase/Lease, owned
₹ in crores Assets and book debts. Further, the Company in respect of secured listed non-convertible debt securities
Balance Relationship maintains 100% security cover or higher security cover as per the terms of Term Sheet/ Offer document/
Nature of
transactions
outstanding as with the Struck Information Memorandum and/or Debenture Trust Deed, sufficient to discharge the principal amount and
Name of Struck off Company at 31st March off company, the interest thereon.
with struck–off
2022 if any, to be
Company
(₹ in crores) disclosed The asset cover available as on 31 st March 2023 in respect of listed secured debt securities is 1.09
11 FAST BUSINESS CENTRE LIMITED Receivables 0.02 External (March 2022: 1.09).
12 KIRAN ENVIRO-TECH ENERGY PRIVATE LIMITED Receivables 0.03 External
13 ASHI INFRAPROJECTS AND ASSOCIATES PRIVATE LIMITED Receivables 0.01 External Note : 39
14 SATKAR SECURITY PROVIDER PRIVATE LIMITED Receivables 0.01 External
Transactions in the nature of change in ownership in other entities
15 ATCOM INFRATECH PRIVATE LIMITED Receivables 0.08 External
16 GOLUDEV INFRASTRUCTURE PRIVATE LIMITED Receivables 0.07 External Transactions pertaining to previous year ended 31st March 2022:
17 M.Y. TRANSPORT COMPANY PRIVATE LIMITED Receivables 0.32 External Pursuant to the Share Subscription, Share Purchase and Shareholders’ Agreement dated 20 August, 2019
18 GOMATESHWAR INVESTMENTS PVT LTD Shares held 50* External with Ideal Finance Limited, Sri Lanka (“Ideal Finance”) and its existing shareholders for investment of the third
by stuck off and final tranche for acquisition of shares of Ideal Finance from its existing shareholders, the Company had
Company
completed the acquisition of the balance 20% of the Equity Share Capital aggregating 2,91,29,032 Equity
19 DREAMS BROKING PRIVATE LIMITED Shares held 476* External
Shares of Ideal Finance from its existing shareholders for ₹ 33.97 crore on 8 July 2021, resulting in an increase
by stuck off
Company in the Company’s stake in Ideal Finance from 38.20% to 58.20% with a cumulative investment of ₹ 77.97
20 UNICKON FINCAP PRIVATE LIMITED Shares held 689* External
Crore. Consequent to this investment, Ideal Finance has become a Subsidiary of the Company effective 8 July,
by stuck off 2021 and the name was changed to Mahindra Ideal Finance Limited.
Company
Note : 40
* Number of Equity Shares Capital management
iv) There is no charges or satisfaction in relation to any debt / borrowings yet to be registered with ROC The Reserve Bank of India vide its circular reference RBI/2019-20/170 DOR (NBFC).CC.PD No.109/22.10.106/
beyond the statutory period. 2019-20 dated 13 March 2020 outlined the regulatory guidance in relation to Ind AS financial statements from
financial year 2019-20 onwards. This included guidance for computation of ‘owned funds’, ‘net owned funds’ and
v) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act ‘regulatory capital’. Accordingly, effective from the financial year ended 31 March 2020, the ‘regulatory capital’
read with Companies (Restriction on number of Layers) Rules, 2017. has been computed in accordance with these requirements read with the requirements of the Master Direction
DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016 (as amended).
vi) Utilisation of Borrowed funds and share premium:
The Company’s capital management strategy is to effectively determine, raise and deploy capital so as to
A) The Company has not advanced or loaned or invested funds (either borrowed funds or share create value for its shareholders. The same is done through a mix of either equity and/or convertible and/or
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign combination of short term /long term debt as may be appropriate.
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the
The Company determines the amount of capital required on the basis of operations, capital expenditure and
Intermediary shall-
strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever profile of overall debt portfolio.
by or on behalf of the company (Ultimate Beneficiaries) or The Company is subject to the capital adequacy requirements of the Reserve Bank of India (RBI). Under RBI’s
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; capital adequacy guidelines, the Company is required to maintain a capital adequacy ratio consisting of Tier I
and Tier II Capital. The total of Tier II Capital at any point of time, shall not exceed 100 percent of Tier I Capital.
B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding The minimum capital ratio as prescribed by RBI guidelines and applicable to the Company, consisting of Tier I
Party) with the understanding (whether recorded in writing or otherwise) that the company shall - and Tier II capital, shall not be less than 15 percent of its aggregate risk weighted assets on-balance sheet and
of risk adjusted value of off-balance sheet.
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or Regulatory capital
₹ in crores
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
As at As at
31st March 2023 31st March 2022
vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Tier – I capital 15,307.93 13,694.10
viii) There are no transactions which have not been recorded in the books of accounts and has been surrendered Tier – II capital 2,045.12 1,982.55
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Also, there Total Capital 17,353.05 15,676.65
are no previously unrecorded income and related assets. Aggregate of Risk Weighted Assets 77,061.91 56,482.56

ix) All the secured non-convertible debentures of the Company including those issued during the year ended Tier – I capital ratio 19.87% 24.24%
31 st March 2023 are fully secured by pari-passu charge on Aurangabad office (wherever applicable) and / or Tier - II capital ratio 2.65% 3.51%
Total Capital ratio 22.52% 27.75%

322 Empowering Emerging India INTEGRATED REPORT 2022-23 323

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

“Tier I Capital” means owned fund as reduced by investment in shares of other non-banking financial companies a) Maturity Analysis – Contractual Undiscounted Cash Flow:
and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance ₹ in crores
made to and deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent As at As at
of the owned fund. 31st March 2023 31st March 2022
Less than 1 year 86.22 54.53
“owned fund” means paid up equity capital, preference shares which are compulsorily convertible into equity, 1 – 3 years 126.98 84.02
free reserves, balance in share premium account and capital reserves representing surplus arising out of sale
3 – 5 years 105.37 51.87
proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance,
book value of intangible assets and deferred revenue expenditure, if any. More than 5 years 129.18 34.17
Total undiscounted lease liabilities 447.75 224.59
“Tier II capital” includes the following –
(a) preference shares other than those which are compulsorily convertible into equity; b) Other disclosures:
Following table summarises other disclosures including the note references for the expense, asset
(b) revaluation reserves at discounted rate of fifty five percent; and liability heads under which certain expenses, assets and liability items are grouped in the
financial statements.
(c) General provisions (including that for Standard Assets) and loss reserves to the extent these are not
attributable to actual diminution in value or identifiable potential loss in any specific asset and are available ₹ in crores
to meet unexpected losses, to the extent of one and one fourth percent of risk weighted assets. 12 month Amount for the year ended / As at
expected credit loss (ECL) allowances for financial instruments i.e. where the credit risk has not increased
31st March 2023 31st March 2022
significantly since initial recognition, shall be included under general provisions and loss reserves in Tier II
i) Depreciation charge for Right-Of-Use assets for Leasehold premises (presented 70.11 47.47
capital within the limits specified by extant regulations. Lifetime ECL shall not be reckoned for regulatory
under note - 31 “Depreciation, amortisation and impairment”)
capital (numerator) while it shall be reduced from the risk weighted assets.
ii) Interest expense on lease liabilities (presented under note - 28 “Finance costs”) 21.79 14.36
(d) hybrid debt capital instruments; and iii) Expense relating to short-term leases (included in Rent expenses under note 5.74 10.83
32 “Other expenses”)
(e) subordinated debt to the extent the aggregate does not exceed Tier I capital. iv) Expense relating to leases of low-value assets (included in Rent expenses 8.73 8.99
under note 32 “Other expenses”)
Aggregate Risk Weighted Assets – v) Payments for principal portion of lease liability 55.57 40.45
Under RBI Guidelines, degrees of credit risk expressed as percentage weightages have been assigned to each vi) Additions to right-of-use assets during the year (refer note 11) 227.34 46.24
of the on–balance sheet assets and off- balance sheet assets. Hence, the value of each of the on-balance sheet vii) Carrying amount of right-of-use assets at the end of the reporting period by
assets and off- balance sheet assets requires to be multiplied by the relevant risk weights to arrive at risk class of underlying asset -
adjusted value of assets. The aggregate shall be taken into account for reckoning the minimum capital ratio. -P
 roperty taken on lease for office premises (presented under note - 11 316.47 165.43
“Property, plant and equipments”)
Note : 41 viii) Lease liabilities (presented under note - 20 “Other financial liabilities”) 349.61 185.26

Leases
Pursuant to amendments brought in by the Ministry of Corporate Affairs through the Companies (Indian
I) In the cases where assets are taken on operating lease (as lessee) – Accounting Standards) Amendment Rules, 2021 vide notification dated 18 June 2021, Ind AS 116 - Leases
As a lessee, the Company’s lease asset class primarily consist of buildings or part thereof taken on lease for paragraph 46B was amended to extend the application of practical expedient related to Covid-19-Related
office premises, certain IT equipments and general purpose office equipments used for operating activities. Rent Concessions to lease payments originally due on or before 30th June 2022. The Company had applied
this practical expedient to all such rent concessions received during the year ended 31st March 2023 (up to
In accordance with the requirements under Ind AS 116, Leases, the Company has recognised the lease 30 June 2022) from certain Lessors that meet the conditions specified in paragraph 46B. The amount of rent
liability at the present value of the future lease payments discounted at the incremental borrowing rate concessions recognised in the statement of profit or loss for the year ended 31st March 2023 is ₹ 0.15 crore.
at the date of initial application as at 1 April 2019, and thereafter, at the inception of respective lease
II) In the cases where assets are given on operating lease (as lessor) –
contracts, ROU asset equal to lease liability is recognised at the incremental borrowing rate prevailed
during that relevant period subject to certain practical expedients as allowed by the standard. Key terms of the lease are as below:
i) Both New and Used vehicles are offered on Lease for a tenure ranging from 24 to 60 months.
The weighted average incremental borrowing rate of 7.85% has been applied to lease liabilities recognised
in the balance sheet at the date of initial application. ii) Customised leasing solutions are offered with value–added services like Fleet Management with
regards to vehicle maintenance, Insurance management including claim settlement, pick–up and drop,
replacement vehicle etc
iii) The consideration payable is the monthly lease rental which varies based on the make / model of the
vehicle and tenure leased.
Rental income arising from these operating leases is accounted for on a straight–line basis over the
lease terms and is included in rental income in the Statement of profit and loss. Costs, including
depreciation, incurred in earning the lease income are recognised as an expense.

324 Empowering Emerging India INTEGRATED REPORT 2022-23 325

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Other details are as follows: Note : 42

₹ in crores
Year ended Year ended
(i) Operating segments
Particulars
31st March 2023 31st March 2022
There is no separate reportable segment as per Ind AS 108 on ‘Operating Segments’ in respect of the Company.
i) New vehicles to retail customers on operating lease –
Gross carrying amount 321.13 144.44 The Company operates in single segment only. There are no operations outside India and hence there is no
Depreciation for the year 49.25 23.42 external revenue or assets which require disclosure.
Accumulated Depreciation 73.91 36.60
No revenue from transactions with a single external customer amounted to 10% or more of the Company’s
ii) Used and refurbished vehicles to travel operators/taxi aggregators –
total revenue in year ended 31 st March 2023 or 31 st March 2022.
Gross carrying amount 2.71 2.71
Depreciation for the year 0.24 1.56 (ii) Frauds reported during the year
Accumulated Depreciation 1.38 2.32
There were 91 cases (31 st March 2022: 178 cases) of frauds amounting to ₹ 2.68 crore (31st March 2022: ₹
5.13 crore) reported during the year. The Company has recovered an amount of ₹ 0.65 crore (31 st March 2022:
The total future minimum lease rentals receivable for the non–cancellable lease period as at the Balance
₹ 2.24 crore) and has initiated appropriate legal actions against the individuals involved. The claims for the un-
sheet date is as under:
recovered losses have been lodged with the insurance companies on merit basis.

₹ in crores Note : 43
Particulars
As at As at Contingent liabilities and commitments (to the extent not provided for)
31st March 2023 31st March 2022
i) New vehicles to retail customers on operating lease – ₹ in crores

Not later than one year 87.95 43.20 31st March 2023 31st March 2022

Later than one year but not later than five years 169.72 89.15 i) Contingent liabilities
257.67 132.35 Claims against the Company not acknowledged as debts 179.31 170.99
ii) Used and refurbished vehicles to travel operators/taxi aggregators – Guarantees 1,983.72 1,720.34
Not later than one year 0.20 0.20 2,163.03 1,891.33
Later than one year but not later than five years 0.12 0.12 ii) Commitments
0.32 0.32 Estimated amount of contracts remaining to be executed on capital account and 201.00 58.17
not provided for
Since there is no contingent rent applicable in respect of these lease arrangements, the Company has not Commitment towards Share Purchase Agreement with Inclusion Resources 206.39 –
recognised any income as contingent income during the year. Private Limited (IRPL) to acquire balance 20% equity stake in its subsidiary
Mahindra Insurance Brokers Ltd (MIBL)
III) In the cases where assets are given on finance lease (as lessor) – Other commitments - loan sanctioned but not disbursed 154.30 44.77
Rentals receivable on finance lease: 561.69 102.94
Total 2,724.72 1,994.27
₹ in crores
As at As at The Company’s pending litigations comprise of claims against the Company primarily by the customers and
Particulars
31st March 2023 31st March 2022 proceedings pending with Income Tax, Sales Tax / VAT and other authorities. The Company has reviewed all
Gross Rental Receivable 297.95 33.88 its pending litigations and proceedings and has adequately provided for where provisions are required and
Less: Unearned Income 77.00 7.18 disclosed the contingent liabilities where applicable, in its financial statements. The amount of provisions /
Net Receivable before charging allowance for Impairment loss 220.95 26.70 contingent liabilities is based on management’s estimate, and no significant liability is expected to arise out of
the same.
Less: Allowance for Impairment losses 6.48 0.25
Total Net Receivables 214.47 26.45
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required. The Company does not expect the outcome of these proceedings to have a materially
adverse effect on its financial performance and financial position regarding the amounts disclosed above, it is
Particulars Within 1 year 1 to 5 years Over 5 years Total not practicable to disclose information on the possibility of any reimbursements as it is determinable only on
Gross Rental Receivables 98.62 199.33 – 297.95 the occurrence of uncertain future events.
Less: Unearned Income 23.23 53.77 – 77.00
Net Receivable before charging allowance for 75.39 145.56 – 220.95
Impairment loss

326 Empowering Emerging India INTEGRATED REPORT 2022-23 327

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 44 Any unspent amount at the end of the financial year will be treated as per the provisions of the existing CSR
Law. Any surplus arising out of the CSR Projects or Programs or activities shall not form part of the business
Transfer of financial assets
profit of the Company.
Transferred financial assets that are not derecognised in their entirety
The Company has transferred certain pools of fixed rate loan receivables backed by underlying assets in the The Company has set up the Mahindra Finance CSR Foundation (incorporated on 2nd April, 2019) as a
form of tractors, vehicles, equipments etc. by entering in to securitisation transactions with the Special Purpose wholly-owned subsidiary company registered under Section 8 of the Companies Act, 2013 to promote and
Vehicle Trusts (“SPV Trust”) sponsored by Commercial banks for consideration received in cash at the inception support CSR projects and activities of the Company and its subsidiary companies. The Company implements its
of the transaction. CSR programs through the Mahindra Finance CSR Foundation.

The Company, being Originator of these loan receivables, also acts as Servicer with a responsibility of collection The Company has identified CSR Thrust Areas for undertaking CSR Projects/ programs/activities in India. The
of receivables from its borrowers and depositing the same in Collection and Payout Account maintained by the actual distribution of the expenditure among these thrust areas will depend upon the local needs as may be
SPV Trust for making scheduled payouts to the investors in Pass Though Certificates (PTCs) issued by the SPV determined by the need identification studies or discussions with local government/ Gram panchayat/ NGOs.
Trust. These securitisation transactions also requires the Company to provide for first loss credit enhancement The Company shall give preference to the local area and areas around which the Company operates for CSR
in various forms, such as corporate guarantee, cash collateral, subscription to subordinated PTCs. as credit spending. Thrust areas include health, education, environment and other activities.
support in the event of shortfall in collections from underlying loan contracts. By virtue of existence of credit
enhancement, the Company is exposed to credit risk, being the expected losses that will be incurred on the The amount spent or contribution / donations made towards CSR activities is charged to Corporate Social
transferred loan receivables to the extent of the credit enhancement provided. Responsibility (CSR) expenses, in the statement of Profit and Loss.

In view of the above, the Company has retained substantially all the risks and rewards of ownership of the The CSR activities of the Company shall include, but not limited to any or all of the sectors/activities as may
financial asset and thereby does not meet the recognition criteria as set out in Ind AS 109. Consideration be prescribed by Schedule VII of the Companies Act, 2013 amended from time to time. Further, the Company
received in this transaction is presented as “Associated liability related to Securitisation transactions” under reviews the sectors/activities from time to time and make additions/ deletions/ clarifications to the above
Note no. 17. sectors/activities.

The following table provide a summary of financial assets that have been transferred in such a way that part or During the year ended 31 st March 2023, the Company has incurred an expenditure of ₹ 41 crore (31 st March
all of the transferred financial assets do not qualify for derecognition, together with the associated liabilities: 2022: ₹ 28.69 crore) towards CSR activities which includes contribution / donations made to the trusts which
are engaged in activities prescribed under section 135 of the Companies Act, 2013 read with Schedule VII to
the said Act and expense of ₹ 3.50 crore (31 st March 2022: ₹ 0.79 crore) towards the CSR activities undertaken
₹ in crores by the Company. The amount includes ₹ 7.79 crore towards unspent amount of the previous financial year.
As at As at
Particulars
31st March 2023 31st March 2022 The CSR activities of the Company shall include, but not limited to any or all of the sectors/activities as may
Securitisations – be prescribed by Schedule VII of the Companies Act, 2013 amended from time to time. Further, the Company
Carrying amount of transferred assets measured at amortised cost 6,726.19 8,319.61 will review the sectors/activities from time to time and make additions/ deletions/ clarifications to the above
Carrying amount of associated liabilities 6,718.60 8,089.20 sectors/activities.
Fair value of transferred assets (A) 6,511.34 8,120.33
Detail of amount spent towards CSR activities:
Fair value of associated liabilities (B) 6,781.18 8,209.70
a) Gross amount required to be spent by the Company during the year is ₹ 37.13 crore (31 st March 2022:
Net position (A–B) (269.84) (89.37)
₹ 37.51 crore).
Note : 45
b) Amount spent by the Company during the year:
Corporate Social Responsibility (CSR)
The Corporate Social Responsibility Committee (‘CSR Committee’ Board level) is responsible to formulate and ₹ in crores
recommend to the Board the CSR Policy indicating the activities falling within the purview of Schedule VII to For the year ended 31st March 2023 For the year ended 31st March 2022
the Companies Act, 2013, to be undertaken by the Company, to recommend the amount to be spent on CSR Particulars Yet to be Yet to be paid in In
activities presented by the Financial Services Sector CSR Council (‘FSS CSR Council’) and to monitor the CSR In cash Total Total
paid in cash cash
Policy periodically. i) Construction/acquisition of any – – – – –
asset
Funding and Allocation: ii) On purpose other than (i) above* 45.07 – 45.07 29.72 29.72
For achieving the CSR objectives through implementation of meaningful and sustainable CSR Projects, the
CSR Committee will allocate for its Annual CSR Budget, 2% of the average net profits of the Company made * The above expenditure includes ₹ 7.79 crore of unspent amount for previous financial year.
during the three immediately preceding financial years, calculated in accordance with the relevant Sections of
the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The current year expenditure includes ₹ 0.57 crore (31 st March 2022: ₹ 0.24 crore) as salary cost in
respect of certain employees who have been exclusively engaged in CSR administrative activities which
The Company may spend up to 5% of the total CSR expenditure in one financial year on building CSR capabilities. qualifies as CSR expenditure under section 135 of the Companies Act, 2013.
The Company may also make contributions to its Corporate Foundations/Trusts i.e. K. C. Mahindra Education
Trust and Mahindra Foundation, towards its corpus for projects approved by the Board. The CSR Committee will c) Amount of shortfall at the end of the year: Nil
approve the CSR budget annually on receiving the recommendations from FSS CSR Council.

328 Empowering Emerging India INTEGRATED REPORT 2022-23 329

 Business
Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
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Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

d) Nature of CSR activities: Contributions / donations made to the trusts which are engaged in activities Note : 49
prescribed under section 135 of the Companies Act, 2013 read with Schedule VII to the said Act and CSR
Financial Risk Management Framework
activities undertaken by the Company.
In the course of its business, the Company is exposed to certain financial risks namely credit risk, interest
e) 
Provision made with respect to a liability already incurred by entering into a contractual obligation: risk, currency risk & liquidity risk. The Company’s primary focus is to achieve better predictability of financial
Nil markets and seek to minimise potential adverse effects on its financial performance.

Note : 46 The financial risks are managed in accordance with the Company’s risk management policy which has been
approved by its Board of Directors.
There was no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013 during the year.
Board of Directors of the Company have established Asset and Liability Management Committee (ALCO), which
is responsible for developing and monitoring risk management policies for its business. The Company’s financial
Note : 47
services business is exposed to high credit risk given the unbanked rural customer base and diminishing value
The Company has a process whereby periodically all long term contracts (including derivative contracts) of collateral. The credit risk is managed through credit norms established based on historical experience.
are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that
adequate provision as required under any law / accounting standards for material foreseeable losses on such 49.1 Market Risk
long term contracts (including derivative contracts) has been made in the books of accounts. Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to
changes in market variables such as interest rates, foreign exchange rates, etc. The objective of market
Note : 48 risk management is to manage and control market risk exposures within acceptable parameters, while
Reconciliation of movement of liabilities to cash flows arising from financing activities maximising the return.
Year ended 31st March 2023 ₹ in crores
a) Pricing Risk
Amortisation
1 April Cash flows Exchange of loan 31 March, The Company’s Investments in Commercial Papers, Certificate of Deposits with Banks and Mutual
Particulars New leases
2022 (net) difference origination 2023 Funds are exposed to pricing risk. A 5 percent increase in market price would increase profit before
costs
tax by approximately ₹ 103.36 crore (31 st March 2022: ₹ 41.72 crore). A similar percentage decrease
Debt securities 18,252.71 6,496.00 – (3.64) – 24,745.07 would have resulted equivalent opposite impact.
Borrowings (Other than debt securities) 26,005.17 15,328.39 (96.85) (2.65) – 41,234.06
Deposits 8,426.19 (2,905.23) – 3.64 – 5,524.60 b) Currency Risk
Subordinated liabilities 3,129.85 309.99 – 2.29 – 3,442.13 Currency Risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
Lease liabilities 185.26 (56.80) – – 221.15 349.61 exchange rates. Foreign currency risk arise majorly on account of foreign currency borrowings. The
Total 55,999.18 19,172.35 (96.85) (0.36) 221.15 75,295.47 Company’s foreign currency exposures are managed in accordance with its derivative Risk Management
Policy which has been approved by its Board of Directors. The Company manages its foreign currency
risk by entering into forward contract, cross currency swaps, principal and interest rate swaps. Other
derivative Instruments may be used if deemed appropriate.
Year ended 31st March 2022 ₹ in crores

Amortisation
The carrying amounts of the Company’s foreign currency exposure at the end of the reporting period
1 April Cash flows Exchange 31st March are as follows:
Particulars of loan New leases
2021 (net) difference 2022
origination
costs
Debt securities 16,834.57 1,405.70 – 12.44 – 18,252.71 ₹ in crores
Borrowings (Other than debt securities) 29,142.08 (3,061.65) (90.38) 15.11 – 26,005.17 JPY US Dollar Total
Deposits 9,450.66 (1,034.09) – 9.62 – 8,426.19 As at 31st March 2023
Subordinated liabilities 3,149.37 (22.25) – 2.73 – 3,129.85 Financial Assets – – –
Lease liabilities 190.10 (44.14) – – 39.30 185.26 Financial Liabilities 1,732.32 818.39 2,550.71
Total 58,766.77 (2,756.43) (90.38) 39.90 39.30 55,999.18 As at 31st March 2022
Financial Assets – – –
Financial Liabilities 928.75 1,248.77 2,177.52

330 Empowering Emerging India INTEGRATED REPORT 2022-23 331

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Foreign Currency Sensitivity Financial liabilities subject to offsetting

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates,
₹ in crores
with all other variables held constant.
Offsetting recognised on the balance sheet

Particulars Liabilities
Gross liabilities Financial assets
₹ in crores recognised in
before offset netted
Effect on Profit balance sheet
Currency Change in rate
Before Tax Other financial liabilities
Year ended 31st March 2023 INR/JPY (+/-) 1.00% (+/-) 17.38 At 31st March 2023 2,486.87 102.59 2,384.28
INR/USD (+/-) 1.00% (+/-) 8.22 At 31st March 2022 2,413.90 97.73 2,316.17
Year ended 31st March 2022 INR/JPY (+/-) 1.00% (+/-) 9.29
INR/USD (+/-) 1.00% (+/-) 12.49 49.2 Credit Risk Management
Credit risk is the risk that the Company will incur a loss because its customers fail to discharge their
c) Interest Rate Risk contractual obligations. The Company has a comprehensive framework for monitoring credit quality of its
The Company uses a mix of cash and borrowings to manage the liquidity & fund requirements of its retail and other loans primarily based on Days past due monitoring at period end. Repayment by individual
day-to-day operations. Further, certain interest bearing liabilities carry variable interest rates. customers and portfolio is tracked regularly and required steps for recovery are taken through follow ups
and legal recourse.
Interest Rate risk on variable rate borrowings is managed by way of interest rate swaps,
wherever necessary. Credit Quality of Financial Loans and Investments
The following table sets out information about credit quality of loans and investments measured at
Interest Rate sensitivity amortised cost primarily based on days past due information. The amount represents gross carrying amount.
The sensitivity analysis below have been determined based on exposure to interest rate for both
derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities, ₹ in crores
analysis is prepared assuming the amount of liability outstanding at the end of the reporting period
Particulars 31st March 2023 31st March 2022
was outstanding for the whole year.
Gross carrying value of Retail loans including Finance Lease
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on Neither Past due nor impaired 62,401.65 42,798.40
that portion of loans and borrowings affected. With all other variables held constant, the Company’s Past Due but not impaired:
profit before tax is affected through the impact on floating rate borrowings, as follows: - 1-30 days past due 4,835.98 4,222.47
- 31-90 days past due 4,852.73 9,112.22
₹ in crores Impaired (more than 90 days) 3,655.10 4,864.19
Increase / Total Gross carrying value as at reporting date 75,745.46 60,997.28
Effect on profit
Currency decrease in
before tax
basis points
Year ended 31st March 2023 INR 100 228.78 ₹ in crores
Year ended 31st March 2022 INR 100 123.29 Particulars 31st March 2023 31st March 2022
Gross carrying value of SME loans including Bills of exchange
d) Off-setting of balances Neither Past due nor impaired 4,331.40 1,912.31
The table below summarises the financial liabilities offsetted against financial assets and shown on a Past Due but not impaired:
net basis in the balance sheet: - 1-30 days past due 55.05 102.78
- 31-90 days past due 20.54 80.42
Financial assets subject to offsetting
Impaired (more than 90 days) 49.69 44.97
₹ in crores Total Gross carrying value as at reporting date 4,456.68 2,140.48
Offsetting recognised on the balance sheet

Particulars Financial Assets

Gross assets ₹ in crores
liabilities recognised in
before offset
netted balance sheet Particulars 31st March 2023 31st March 2022
Loan assets Gross carrying value of Trade Advances
At 31st March 2023 79,557.32 102.59 79,454.73 Less than 60 days past due 2,480.06 1,682.21
At 31st March 2022 60,542.37 97.73 60,444.64 61-90 days past due 53.43 64.55
Impaired (more than 90 days) 6.93 60.66
Total Gross carrying value as at reporting date 2,540.42 1,807.42

332 Empowering Emerging India INTEGRATED REPORT 2022-23 333

 Business
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Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
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Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

₹ in crores (ii) Impact of COVID-19 related uncertainties

Particulars 31st March 2023 31st March 2022
The outbreak of COVID-19 led to nationwide lockdown from March 2020, which gradually phased out
Gross carrying value of Financial Investments measured at amortised cost over the next few months basis the local level spread of the pandemic. The nation was impacted by
Neither Past due nor impaired 1,436.11 1,531.82 the second wave of the pandemic in the first half of the fiscal year 2022 which again slowed down the
Past Due but not impaired: economic activities to a limited extent. Despite the successful roll out of vaccines around the world, a
- 1-30 days past due - - varying degree of uncertainty remained throughout the year ended 31 st March 2022. This was caused
- 31-90 days past due - - by new variants of COVID -19, varying vaccine effectiveness and the need for reimposing of government
- imposed restrictions. This uncertainty is reflected in the Company’s assessment of impairment loss
Impaired (more than 90 days) - -
allowance on its loans which are subject to a number of management judgements and estimates. In
Total Gross carrying value as at reporting date 1,436.11 1,531.82 relation to COVID-19, judgements and assumptions include the extent and duration of the pandemic,
the changes in the macro-economic outlook and its associated impact on the impairment calculations.
The Company reviews the credit quality of its loans based on the ageing of the loan at the period end.
Since the company is primarily into retail lending business, there is no significant credit risk of any individual The methodologies and assumptions applied in the impairment loss allowance calculations have primarily
customer that may impact company adversely, and hence the Company has calculated its ECL allowances remained unchanged from those applied while preparing the financial results for the year ended 31 March
on a collective basis. 2022. The Company has been updating the ECL model with the latest set of data on reasonable periodic
intervals and continued the same for the year ended 31st March 2023, to capture the significant
Inputs considered in the ECL model changes in macro-economic growth prospects and shifts in market drivers and changes in risk profile of
In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have customer credit exposures. Output of ECL model refresh is also factored in computation of provisions.
been segmented into three stages. The three stages reflect the general pattern of credit deterioration of The Company holds provision towards expected credit loss on financial assets as at 31st March 2023
a financial instrument. The differences in accounting between stages, relate to the recognition of expected aggregating to ₹ 3,294.71 crore (as at 31st March 2022: ₹ 4,508.83 crore).
credit losses and the measurement of interest income.
(iii) Definition of default
The Company categorises loan assets (except Trade advances) into stages primarily based on the Days
The Company considers a financial asset to be in “default” and therefore Stage 3 (credit impaired)
Past Due status.
for ECL calculations when the borrower account becomes more than 90 days past due on its
Stage 1: 0-30 days past due contractual payments.

Stage 2: 31- 90 days past due (iv) Exposure at default

“Exposure at Default” (EAD) represents the gross exposure balance when default had occurred. EAD is
Stage 3: More than 90 days
subject to impairment calculation for Stage 3 assets. Future Expected Cash flows (Principal and Interest)
The Company categorises Trade advances into stages primarily based on the Days Past Due status. for future years has been used as exposure for Stage 2.

Stage 1: 0-60 days past due (v) Estimations and assumptions considered in the ECL model
The Company has made the following assumptions in the ECL Model:
Stage 2: 61- 90 days past due

Stage 3: More than 90 days a) Loss Given Default (LGD):

– LGD represents expected losses on the EAD given the event of default, taking into account,
The Company applies the simplified approach to providing for expected credit losses prescribed by Ind among other attributes, the mitigating effect of collateral value at the time it is expected to
AS 109, which permits the use of the lifetime expected loss provision for trade advances, lease and other be realised and the time value of money determined based on appropriate discount rate. It is
receivables. The Company has computed expected credit losses based on a provision matrix which uses an estimate of the loss from a transaction given that a default occurred.
historical credit loss experience of the Company.
Generally, common LGD is applied on the exposures in all the three stages.
(i) RBI measures to relieve COVID-19 related stress - Resolution Frameworks Assessment of loan
modifications on credit risk: While, the general approach / methodology remains the same, the measurement of ECL on retail
vehicle loans is done on a slightly differentiated approach as mentioned here below.
During the previous years ended 31 March 2021 and year ended 31st March 2022, the Company
had implemented resolution plans in order to provide relief to borrowers adversely impacted due to – For Stage 3 assets with an ageing more than 18 months (540 DPD) (stressed portfolio),
onslaught of multiple waves / variants of COVID-19 Pandemic under the resolution framework 1.0 provision is calculated by applying LGD at higher rate. Higher LGD rate is determined based
vide circular no. RBI/2020-21/16 DOR. No.BP.BC/3/21.04.048/2020-21 dated 6th August 2020 on the historical loss that has occurred during the tenor of individual assets forming part
for personal loan customers and resolution framework 2.0 vide circular No. RBI/2021-22/32 of specific portfolio of contracts with an ageing of more than 18 months (540 DPD) at
DOR.STR.REC.12/21.04.048/2021-22 dated 5th May 2021. The loan modifications executed under both the historical period end date (i.e. 42 months from the reset /reporting date) based on the
these schemes have not been classified as renegotiated as they are as a result of market-wide customer average life of the portfolio and is considered as model provision for ECL calculation;
relief programme and not borrower-specific. The Company continues to monitor the recoverability of
loans granted in accordance with these circulars and is continue to carry higher provisioning over and – For Stage 3 assets with an ageing up to 18 months (540 DPD), provision is calculated by
above the model provisioning based on the repayment behaviour on these loan accounts. (refer Note 57 applying the Composite LGD rate#;
for detailed disclosure as per formats provided by the RBI).
– For Stage 1 and Stage 2 assets, continue to derive and apply Composite LGD rate in calculation
of loss allowances.

334 Empowering Emerging India INTEGRATED REPORT 2022-23 335

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Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

# Composite LGD rate: It is an estimate of the loss from a transaction given that a default Required Carrying value-B ={EAD less ECL allowance at Higher LGD rate less PV of actual cashflows
occurs. It is based on the historical loss on the portfolio that has occurred during the tenor till reporting date plus interest compounded @ loan EIR}
of the individual assets forming part of the portfolio.
− Undrawn loan commitments:
For calculating LGD, the Company takes into consideration the Stage 2 assets that have
reached 90+ DPD in the past and Stage 3 cases of historical period end date (i.e. 42 months ECL on undrawn loan commitments is calculated basis the Stage in which that particular customer
from the reset /reporting date) based on the average life of the portfolio. Actual cash flows already exists.
pertaining to this portfolio from the first default date to current reset/reporting date are
then discounted at Loan EIR rate for arriving at this loss rate. (vii) Forward Looking Information
Historical PDs has been converted into forward looking PD which incorporates the forward looking
b) Probability of Default (PD):
economic outlook. Considering that major chunk of borrowers in the retail portfolio is from rural area,
– It is an estimate of likelihood or risk of default occurring over a particular time horizon. Agriculture (real change % p.a.) is used as a macroeconomic variable. Agriculture (real change % p.a.)
– The measurement of risk of defaults is computed on homogenous portfolios, generally by nature stands for Percentage change in real agricultural value-added, including livestock, forestry and fishing,
of loans, tenors, underlying collateral, geographies and borrower profiles. The default risk is over previous year. In case of SME and Bills Discounting portfolio, Real GDP (% change p.a.) is used as
assessed using PD (probability of default) derived from past behavioural trends of default across the macroeconomic variable.
the identified homogenous portfolios. These past trends factor in the past customer behavioural
The macroeconomic variables considered by the Company are robust reflections of the state of
trends, credit transition probabilities and macroeconomic conditions. The assessed PDs are then
economy which result into systematic risk for the respective portfolio segments.
aligned considering future economic conditions that are determined to have a bearing on ECL.
– For Stage 1 assets, 12 months PD is considered which represents default events that are Additionally, three different scenarios have been considered for ECL calculation. Along with the actual
possible within 12 months after the reporting date. numbers (considered for Base case scenario), other scenarios take care of the worsening as well as
improving forward looking economic outlook.
– For Stage 2 assets , life time PD is considered which represents default events that are
possible over the expected life / tenor of the financial instrument. (viii) Assessment of significant increase in credit risk
– PD is applied on Stage 1 and Stage 2 assets on a portfolio basis; When determining whether the credit risk has increased significantly since initial recognition, the
Company considers both quantitative and qualitative information and analysis based on the Company’s
– For Stage 3 assets, PD is always at 100% as these are impaired assets. historical experience, including forward-looking information. The Company considers reasonable and
supportable information that is relevant and available without undue cost and effort. The Company’s
(vi) Measurement of ECL
accounting policy is not to use the practical expedient that the financial assets with ‘low’ credit risk
ECL is measured as follows: at the reporting date are deemed not to have had a significant increase in credit risk. As a result,
• Financial assets that are not credit impaired at the reporting date: the Company monitors all financial assets and loan commitments that are subject to impairment for
significant increase in credit risk.

ECL for Stage 1: Gross exposure is multiplied by PD and Composite LGD percentage to arrive at the
ECL allowance; Based on the assessment by the Company, the RBI resolution framework for loan restructuring and
moratorium relaxation announced in previous years to the borrowers recognising the detrimental
• Financial assets that have had a significant increase in credit risk (SICR) since initial recognition
impact of COVID-19 has not been deemed to be automatically triggering significant increase in credit
(unless they have low credit risk at the reporting date) but that do not have objective evidence of
risk. The Company continued to recognise interest income during the current and previous year on
impairment:
such cases and in the absence of other credit risk indicators, the granting of a stress resolution
ECL for Stage 2: Future Expected Cash flows (Principal and Interest) for respective future years is framework and moratorium period did not result in accounts becoming past due and automatically
multiplied by respective years Marginal PDs and Composite LGD percentage and thus arrived ECL triggering Stage 2 or Stage 3 classification criteria.
allowance is then discounted with the respective loan EIR to calculate the present value of ECL allowance.
In addition, in case of Bills discounting and Channel finance, as the average lifetime is of 90 days, a time As a part of the qualitative assessment of whether a customer is in default, the Company also
to maturity factor of 0.25 is used in the ECL computation. considers a variety of instances that may indicate unlikeliness to pay. In such instances, the Company
treats the customer at default and therefore assesses such loans as Stage 3 for ECL calculations.
• Financial assets that are credit impaired at the reporting date: Such qualitative factors include:
ECL for Stage 3: Difference between the gross exposure at reporting date and computed carrying • A Stage 3 customer having other loans which are in Stage 1 or 2.
amount considering EAD net of LGD and PV of actual cash flows till reporting date including compounded
• Not to consider Uncleared cheques as on reporting date for outstanding DPD calculation for retail
interest at loan EIR on net carrying value.
vehicle loans
For Stage 3 assets in retail portfolio, ECL allowance is calculated separately as follows: • Retail vehicle loans, where asset has been repossessed.
• Cases where Company suspects fraud and legal proceedings are initiated.
−  tage 3 assets with ageing up to 18 months (< =540 DPD) ECL allowance = (Gross exposure on
S
reporting date less Required Carrying value-A) • SME loans where the Company has resorted to its rights under the SARFAESI Act.

Required Carrying value-A ={EAD less ECL allowance at Composite LGD rate less PV of actual Further, the Company classifies certain category of exposures in to Stage 3 and makes accelerated
cashflows till reporting date plus interest compounded @ loan EIR} provision up to 100% based on qualitative assessment implying the significant deterioration in asset
quality or increase in credit risk on selective basis. The Company regularly reviews it’s ECL model based
− Stage 3 assets with ageing more than 18 months (>540 DPD) on actual loss experience and update the parameters used for ECL calculations.
ECL allowance = (Gross exposure on reporting date less Required Carrying value-B)

336 Empowering Emerging India INTEGRATED REPORT 2022-23 337

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

(ix) Policy for write off of Loan Assets The expected credit loss allowance provision for SME Loans including Bills of exchange is determined
The gross carrying amount of a financial asset is written off when there is no realistic prospect of as follows:
further recovery. This is generally the case when the Company determines that the debtor does not
have assets or sources of income that could generate sufficient cash flows to repay the amounts ₹ in crores
subject to the write- off. However, financial assets that are written off could still be subject to Performing
Underperforming
Impaired loans -
enforcement activities under the Company’s recovery procedures, taking into account legal advice loans - ‘lifetime
Loans - 12 ‘lifetime ECL Total
ECL not credit
where appropriate. Any recoveries made from written off assets are netted off against the amount of month ECL
impaired’
credit impaired’
financial assets written off during the year under “Bad debts and write offs” forming part of “Impairment
Gross Balance as at 31st March 2023 4,386.46 20.53 49.69 4,456.68
on financial instruments” in Statement of profit and loss.
Expected credit loss rate 0.36% 9.58% 57.10%
(x) Analysis of inputs to the ECL model with respect to macro-economic variable Carrying amount as at 31st March 2023 4,370.63 18.56 21.32 4,410.51
(net of impairment provision)
The below table shows the values of the forward looking macro-economic variable used in each of
Gross Balance as at 31st March 2022 2,015.09 80.42 44.97 2,140.48
the scenarios for the ECL calculations. For this purpose, the Company has used the data source of
Economist Intelligence Unit. The upside and downside % change has been derived using historical Expected credit loss rate 0.37% 13.70% 51.93%
standard deviation from the base scenario based on previous 8 years change in the variable. Carrying amount as at 31st March 2022 2,007.67 69.40 21.62 2,098.69
(net of impairment provision)

Upside Base Downside The expected credit loss allowance provision for Trade Advances is determined as follows:
ECL scenario for Macro Economic Variable Year
% % %
Probability Assigned 0 85 15 ₹ in crores

Agriculture (% real change p.a) 2023 6.9 4.7 1.6 Credit impaired
Less than 60 61-90 days
(more than 90 Total
2024 7.7 5.3 2.4 days past due past due
days)
2025 7.1 4.8 1.8 Gross Balance as at 31st March 2023 2,480.06 53.43 6.93 2,540.42
2026 7.6 5.2 2.3 Expected credit loss rate 0.40% 5.96% 100.00%
2027 6.7 4.5 1.4 Carrying amount as at 31st March 2023 2,470.14 50.25 - 2,520.39
Real GDP (% change p.a) 2023 10.9 6.0 1.1 (net of impairment provision)
2024 11.1 6.2 1.3 Gross Balance as at 31st March 2022 1,682.21 64.55 60.66 1,807.42
2025 11.4 6.5 1.6 Expected credit loss rate 0.40% 6.73% 100.00%
2026 11.5 6.6 1.7 Carrying amount as at 31st March 2022 1,675.48 60.21 - 1,735.68
(net of impairment provision)
2027 11.0 6.1 1.2

The contractual amount outstanding for trade advance that has been written off by the Company
Impairment loss
during the year ended 31 st March 2023 and that were still subject to enforcement activity was
The expected credit loss allowance provision for Retail Loans including Finance lease is determined ₹ 56.64 crore (31 st March 2022: Nil).
as follows:
The expected credit loss allowance provision for Financial Investments measured at amortised
cost is determined as follows:
₹ in crores
Underperforming
Performing Impaired loans - ₹ in crores
loans - ‘lifetime
Loans - 12 ‘lifetime ECL Total
ECL not credit Underperforming
month ECL credit impaired’ Performing Impaired loans -
impaired’ loans - ‘lifetime
Loans - 12 ‘lifetime ECL Total
ECL not credit
Gross Balance as at 31st March 2023 67,237.63 4,852.73 3,655.10 75,745.46 month ECL
impaired’
credit impaired’
Expected credit loss rate 0.79% 10.69% 59.12%
Gross Balance as at 31st March 2023 1,436.11 - - 1,436.11
Carrying amount as at 31st
March 2023 66,704.76 4,334.15 1,494.32 72,533.23
Expected credit loss rate 0.07%
(net of impairment provision)
Carrying amount as at 31st March 2023 1,435.13 - - 1,435.13
Gross Balance as at 31st March 2022 47,020.87 9,112.22 4,864.19 60,997.28
(net of impairment provision)
Expected credit loss rate 0.91% 12.72% 57.56%
Gross Balance as at 31st March 2022 1,531.82 - - 1,531.82
Carrying amount as at 31st March 2022 46,592.65 7,953.28 2,064.33 56,610.26
Expected credit loss rate 0.11%
(net of impairment provision)
Carrying amount as at 31st March 2022 1,530.21 - - 1,530.21
(net of impairment provision)

338 Empowering Emerging India INTEGRATED REPORT 2022-23 339

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Level of Assessment - Aggregation Criteria Reconciliation of ECL balance

The Company recognises the expected credit losses (ECL) on a collective basis that takes into account
comprehensive credit risk information. As at 31st March 2022 ₹ in crores
Particulars Stage 1 Stage 2 Stage 3 Total
Considering the economic and risk characteristics, pricing range, sector concentration (e.g. vehicle ECL allowance balance as at 1 April 2021 410.72 864.91 3,268.98 4,544.61
loans in unorganised sectors) the Company calculates ECL on a collective basis for all stages - Stage
Changes due to loans recognised in the
1, Stage 2 and Stage 3 assets. opening balance that have:
- Transfers to Stage 1 386.93 (148.75) (238.18) -
An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
- Transfers to Stage 2 (41.49) 168.10 (126.61) -
Retail Loans including Finance Lease is, as follows:
- Transfers to Stage 3 (10.09) (122.48) 132.57 -
Gross exposure reconciliation - Loans that have been derecognised during (65.35) (335.99) (788.36) (1,189.70)
the period

As at 31st March 2022 ₹ in crores New loans originated during the year 216.84 491.58 291.00 999.42
Particulars Stage 1 Stage 2 Stage 3 Total Write-offs (0.04) (5.76) (860.46) (866.26)

Gross carrying amount balance as at 1 48,010.22 7,947.59 5,681.06 61,638.86 Impact of changes on items within the same (469.30) 247.33 1,120.92 898.95
stage
April 2021
ECL allowance balance as at 31st March 428.22 1,158.94 2,799.86 4,387.02
Changes due to loans recognised in the 0.40% 5.96% 100.00%
2022
opening balance that have:
- Transfers to Stage 1 1,780.81 (1,366.89) (413.92) -
- Transfers to Stage 2 (4,850.04) 5,070.06 (220.02) 0.00
As at 31st March 2023 ₹ in crores
- Transfers to Stage 3 (1,178.97) (1,125.45) 2,304.42 - Particulars Stage 1 Stage 2 Stage 3 Total
- Loans that have been derecognised during (7,638.99) (3,087.39) (1,370.07) (12,096.45)
ECL allowance balance as at 1 April 2022 428.22 1,158.94 2,799.86 4,387.02
the period
Changes due to loans recognised in the
New loans originated during the year 23,809.27 3,865.09 505.56 28,179.92
opening balance that have:
Write-offs (4.61) (52.89) (1,495.37) (1,552.87)
- Transfers to Stage 1 423.51 (295.80) (127.71) -
Impact of changes on items within the same (12,906.81) (2,137.90) (127.47) (15,172.18)
- Transfers to Stage 2 (22.51) 84.24 (61.73) -
stage
- Transfers to Stage 3 (7.26) (153.27) 160.53 -
Gross carrying amount balance as at 47,020.88 9,112.22 4,864.19 60,997.28
31st March 2022 - Loans that have been derecognised during (62.42) (277.73) (909.65) (1,249.80)
the period
New loans originated during the year 322.20 71.09 135.69 528.98
As at 31st March 2023 ₹ in crores Write-offs (0.08) (3.78) (780.88) (784.74)
Particulars Stage 1 Stage 2 Stage 3 Total Impact of changes on items within the same (547.84) (65.27) 953.23 340.12
stage
Gross carrying amount balance as at 1 47,020.88 9,112.22 4,864.19 60,997.28
April 2022 ECL allowance balance as at 31st March 533.82 518.42 2,169.34 3,221.58
2023
Changes due to loans recognised in the
opening balance that have: The contractual amount outstanding on financial assets that has been written off by the Company
- Transfers to Stage 1 2,547.61 (2,325.74) (221.86) - during the year ended 31 st March 2023 and that were still subject to enforcement activity was
- Transfers to Stage 2 (2,472.22) 2,579.47 (107.24) - ₹ 1,395.13 crore (31 st March 2022: ₹ 1,638.80 crore).
- Transfers to Stage 3 (797.21) (1,205.08) 2,002.29 -
- Loans that have been derecognised during (6,854.18) (2,183.64) (1,580.34) (10,618.16) The overall decrease in ECL allowance on the portfolio was driven by movements between stages and
the period higher amount of write offs.
New loans originated during the year 40,659.66 665.40 216.59 41,541.65
Write-offs (8.49) (29.73) (1,356.62) (1,394.84)
Impact of changes on items within the same (12,858.42) (1,760.15) (161.90) (14,780.47)
stage
Gross carrying amount balance as at 31st 67,237.62 4,852.75 3,655.11 75,745.46
March 2023

340 Empowering Emerging India INTEGRATED REPORT 2022-23 341

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
As at 31st March 2023 ₹ in crores
SME Loans including Bills of exchange is, as follows:
Particulars Stage 1 Stage 2 Stage 3 Total
Gross exposure reconciliation ECL allowance balance as at 1 April 2022 7.43 11.03 23.34 41.80
Changes due to loans recognised in the opening
As at 31st March 2022 ₹ in crores
balance that have:
Particulars Stage 1 Stage 2 Stage 3 Total - Transfers to Stage 1 7.33 (6.93) (0.40) -
Gross carrying amount balance as at 1 April 2021 1,580.83 138.98 38.02 1,757.84 - Transfers to Stage 2 (0.11) 0.46 (0.35) -
Changes due to loans recognised in the opening - Transfers to Stage 3 (0.06) (1.39) 1.45 -
balance that have: - Loans that have been derecognised during the period (2.08) (1.62) (2.43) (6.13)
- Transfers to Stage 1 30.73 (30.03) (0.70) - New loans originated during the year 13.78 0.35 1.37 15.50
- Transfers to Stage 2 (38.10) 38.67 (0.57) - Write-offs - (0.23) (3.28) (3.51)
- Transfers to Stage 3 (13.23) (11.68) 24.91 - Impact of changes on items within the same stage (10.44) 0.32 8.67 (1.45)
ECL allowance balance as at 31st March 2023 15.85 1.99 28.37 46.21
- Loans that have been derecognised during the period (1,041.81) (38.27) (1.33) (1,081.41)
New loans originated during the year 1,705.78 8.84 0.22 1,714.84 The contractual amount outstanding on financial assets that has been written off by the Company
Write-offs (0.03) - (13.28) (13.31) during the year ended 31 st March 2023 and that were still subject to enforcement activity was
Impact of changes on items within the same stage (209.09) (26.09) (2.30) (237.48) ₹ 7.46 crore (31 March 2022: ₹ 14.72 crore).
Gross carrying amount balance as at 31st March 2,015.08 80.42 44.97 2,140.48
The increase in ECL provisions was driven by increase in the gross size of the portfolio.
2022
An analysis of changes in the outstanding exposure and the corresponding ECLs in relation to
other undrawn commitments is as follows:
As at 31st March 2023 ₹ in crores
Particulars Stage 1 Stage 2 Stage 3 Total
Gross exposure reconciliation
Gross carrying amount balance as at 1st April 2,015.08 80.42 44.97 2,140.48 As at 31st March 2022 ₹ in crores
2022 Particulars Stage 1 Stage 2 Stage 3 Total
Changes due to loans recognised in the opening Opening balance of outstanding exposure as at 61.62 - - 61.62
balance that have: 1 April 2021
- Transfers to Stage 1 53.12 (52.62) (0.50) - New Exposures 44.77 - - 44.77
- Transfers to Stage 2 (14.93) 15.36 (0.43) - Exposure derecognised or matured/ lapsed ( excluding (61.62) - - (61.62)
write-offs)
- Transfers to Stage 3 (8.22) (6.08) 14.30 -
- Transfers to Stage 1 - - - -
- Loans that have been derecognised during the period (1,237.62) (14.15) (3.34) (1,255.11)
- Transfers to Stage 2 - - - -
New loans originated during the year 3,871.70 4.70 2.17 3,878.56 - Transfers to Stage 3 - - - -
Write-offs - (1.69) (5.16) (6.85) Write-offs - - - -
Impact of changes on items within the same stage (292.67) (5.41) (2.32) (300.40) Impact of changes on items within the same stage - - - -
Gross carrying amount balance as at 31st March 4,386.46 20.53 49.69 4,456.68 Closing balance of outstanding exposure as at 44.77 - - 44.77
2023 31st March 2022

Reconciliation of ECL balance As at 31st March 2023 ₹ in crores

Particulars Stage 1 Stage 2 Stage 3 Total
As at 31st March 2022 ₹ in crores
Opening balance of outstanding exposure as at 44.77 - - 44.77
Particulars Stage 1 Stage 2 Stage 3 Total
1 April 2022
ECL allowance balance as at 1st April 2021 5.76 12.60 16.24 34.60
New Exposures 154.30 - - 154.30
Changes due to loans recognised in the opening Exposure derecognised or matured/ lapsed ( excluding (44.77) - - (44.77)
balance that have: write-offs)
- Transfers to Stage 1 2.98 (2.57) (0.41) - - Transfers to Stage 1 - - - -
- Transfers to Stage 2 (0.20) 0.53 (0.33) - - Transfers to Stage 2 - - - -
- Transfers to Stage 3 (0.10) (1.12) 1.22 - - Transfers to Stage 3 - - - -
- Loans that have been derecognised during the period (2.12) (3.51) (0.95) (6.58) Write-offs - - - -
New loans originated during the year 5.49 0.61 0.15 6.25 Impact of changes on items within the same stage - - - -
Closing balance of outstanding exposure as at 31st 154.30 - - 154.30
Write-offs - - (5.89) (5.89)
March 2023
Impact of changes on items within the same stage (4.38) 4.49 13.31 13.42
ECL allowance balance as at 31st March 2022 7.43 11.03 23.34 41.80

342 Empowering Emerging India INTEGRATED REPORT 2022-23 343

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial st
Statements
for the year ended 31 March 2023 for the year ended 31 March 2023

Reconciliation of ECL balance

As at 31st March 2023 ₹ in crores

As at 31st March 2022 ₹ in crores Particulars Stage 1 Stage 2 Stage 3 Total

Particulars Stage 1 Stage 2 Stage 3 Total Gross carrying amount balance as at 1 1,531.81 - - 1,531.81
ECL allowance balance as at 1 April 2021 1.18 - - 1.18 April 2022
New Exposures 0.17 - - 0.17 Changes due to loans recognised in the
opening balance that have:
Exposure derecognised or matured/ lapsed (excluding (1.18) - - (1.18)
write-offs) - Transfers to Stage 1 - - - -
- Transfers to Stage 1 - - - - - Transfers to Stage 2 - - - -
- Transfers to Stage 2 - - - - - Transfers to Stage 3 - - - -
- Transfers to Stage 3 - - - - - Investments that have been derecognised (496.66) - - (496.66)
during the period
- Loans that have been derecognised during the period - - - -
New Investments originated during the year 408.29 - - 408.29
Impact of changes on items within the same stage - - - -
Write-offs - - - -
ECL allowance balance as at 31st March 2022 0.17 - - 0.17
Impact of changes on items within the same (7.33) - - (7.33)
stage
Gross carrying amount balance as at 31st 1,436.11 - - 1,436.11
As at 31st March 2023 ₹ in crores
March 2023
Particulars Stage 1 Stage 2 Stage 3 Total
ECL allowance balance as at 1st April 2022 0.17 - - 0.17
Reconciliation of ECL balance
New Exposures 0.43 - - 0.43
Exposure derecognised or matured/ lapsed (excluding (0.17) - - (0.17) As at 31st March 2022 ₹ in crores
write-offs)
Particulars Stage 1 Stage 2 Stage 3 Total
- Transfers to Stage 1 - - - -
ECL allowance balance as at 1 April 2021 0.41 - - 0.41
- Transfers to Stage 2 - - - -
Changes due to loans recognised in the opening
- Transfers to Stage 3 - - - - balance that have:
- Loans that have been derecognised during the period - - - - - Transfers to Stage 1 - - - -
Impact of changes on items within the same stage - - - - - Transfers to Stage 2 - - - -
ECL allowance balance as at 31st March 2023 0.43 - - 0.43 - Transfers to Stage 3 - - - -
- Investments that have been derecognised during the (0.41) - - (0.41)
An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to period
Financial Investments measured at amortised cost is as follows: New Investments originated during the year 1.61 - - 1.61
Write-offs - - - -
Gross exposure reconciliation
Impact of changes on items within the same stage - - - -
As at 31st March 2022 ₹ in crores
ECL allowance balance as at 31st March 2022 1.61 - - 1.61
Particulars Stage 1 Stage 2 Stage 3 Total
Gross carrying amount balance as at 1st April 3,787.25 - - 3,787.25
2021 As at 31st March 2023 ₹ in crores
Changes due to loans recognised in the opening Particulars Stage 1 Stage 2 Stage 3 Total
balance that have:
ECL allowance balance as at 1st April 1.61 - - 1.61
- Transfers to Stage 1 - - - -
2022
- Transfers to Stage 2 - - - -
Changes due to loans recognised in the
- Transfers to Stage 3 - - - -
opening balance that have:
- Investments that have been derecognised during the (2,481.44) - - (2,481.44)
- Transfers to Stage 1 - - - -
period
- Transfers to Stage 2 - - - -
New Investments originated during the year 230.86 - - 230.86
Write-offs - - - - - Transfers to Stage 3 - - - -
Impact of changes on items within the same stage (4.85) - - (4.85) - Investments that have been derecognised (1.61) - - (1.61)
during the period
Gross carrying amount balance as at 31st March 1,531.81 - - 1,531.81
2022 New Investments originated during the year 55.49 - - 55.49
Write-offs - - - -
Impact of changes on items within the same - - - -
stage
ECL allowance balance as at 31st March 55.49 - - 55.49
2023

344 Empowering Emerging India INTEGRATED REPORT 2022-23 345

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

The contractual amount outstanding on financial investments that has been written off by the Company Gross value of credit impaired loans to value of collateral:
during the year ended 31 st March 2023 and that were still subject to enforcement activity was nil
(31st March 2022: nil). ₹ in crores
Gross Value of Retail loans in Stage 3 Gross Value of SME loans in Stage 3
Loan To Value
Significant changes in the gross carrying value that contributed to change in loss allowance 31st March 2023 31st March 2022 31st March 2023 31st March 2022
The Company mostly provide loans to retail individual customers in Rural and Semi urban area which is Upto 50% 53.62 185.68 14.92 13.60
of small ticket size. Change in any single customer repayment will not impact significantly to Company’s 51 - 70% 67.32 176.51 0.89 22.23
provisioning. All customers are being monitored based on past due and corrective actions are taken 71 - 100% 263.31 504.33 21.71 0.26
accordingly to limit the Company’s risk.
Above 100% 3,270.85 3,997.67 12.17 8.88
Concentration of Credit Risk 3,655.10 4,864.19 49.69 44.97

The Company’s loan portfolio is predominantly to finance retail automobile loans. The Company
The below tables provide an analysis of the current fair values of collateral held for Stage 3 assets. The
manages concentration of risk primarily by geographical region in India. The following tables show the
value of collateral has not been considered while recognising the loss allowances.
geographical concentrations of loans and trade advances:
Fair value of collateral held against Credit Impaired assets
₹ in crores
₹ in crores
Particulars 31st March 2023 31st March 2022
Book
Concentration by Geographical region in India: Debts,
Maximum
North 25,317.81 19,268.21 31st March exposure Plant and Land and
Inventory
Surplus Total Net Associated
Vehicles and other
East 17,970.43 16,293.45 2023 to Credit Machinery Building
Working
Collateral Collateral Exposure ECL
Risk
West 23,496.90 16,784.94 Capital
items
South 15,957.42 12,598.58
Retail 3,655.10 2,162.13 - - - (220.15) 1,941.98 1,713.12 2,169.34
Total Gross Carrying Value 82,742.56 64,945.18
Loans
SME Loans 49.69 1.00 37.45 109.41 0.76 (109.10) 39.52 10.17 28.37
Maximum Exposure to credit Risk
The maximum exposure to credit risk of loans and investment securities is their carrying amount. The
maximum exposure is before considering the effect of mitigation through collateral. ₹ in crores
Book
Narrative Description of Collateral Debts,
Maximum
Collateral primarily include vehicles purchased by retail loan customers and machinery & property in 31st March exposure Plant and Land and
Inventory
Surplus Total Net
Vehicles and other Associated
case of SME customers. The financial investments are secured by way of a first ranking pari-passu and 2022 to Credit Machinery Building Collateral Collateral Exposure
Working ECL
charge created by way of hypothecation on the receivables of the other company. Risk
Capital
items
Quantitative Information of Collateral Retail 4,864.19 3,818.05 – – – (694.56) 3,123.49 1,740.70 2,799.86
The Company monitors its exposure to loan portfolio using the Loan To Value (LTV) ratio, which is calculated Loans
as the ratio of the gross amount of the loan to the value of the collateral. The value of the collateral for SME Loans 44.97 1.80 40.90 76.47 1.85 (83.07) 37.94 7.03 23.34
Retail loans is derived by writing down the asset cost at origination by 20% p.a on reducing balance basis.
And the value of the collateral of Stage 3 Retail loans is based on the Indian Blue Book value for the 49.3Liquidity Risk Management
particular asset. The value of collateral of SME loans is based on fair market value of the collaterals held.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established
Gross value of total secured loans to value of collateral: Asset and Liability Management Committee (ALCO) for the management of the Company’s short, medium
and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
₹ in crores forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Gross Value of Secured Retail loans Gross Value of Secured SME loans
Loan To Value
31st March 2023 31st March 2022 31st March 2023 31st March 2022 a) Maturity profile of non-derivative financial liabilities
Upton 50% 5,552.29 5,209.78 1,088.20 606.87 The following tables detail the Company’s remaining contractual maturity for its non-derivative
51 - 70% 11,237.76 9,540.86 724.50 229.98 financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn
71 - 100% 43,909.81 32,258.89 1,014.19 51.12
up based on the undiscounted contractual cash flows of financial liabilities based on the earliest date
on which the Company can be required to pay. The tables include both interest and principal cash flows.
Above 100% 14,176.26 13,161.38 81.41 29.46
To the extent that interest flows are floating rate, the undiscounted amount is derived from interest
74,876.12 60,170.91 2,908.30 917.43 rate curves at the end of the reporting period. The contractual maturity is based on the earliest date
on which the Company may be required to pay.

346 Empowering Emerging India INTEGRATED REPORT 2022-23 347

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statementsst
for the year ended 31 March 2023 for the year ended 31 March 2023

Non-derivative financial liabilities ₹ in crores

₹ in crores
Less than 1 5 years and
Less than 1 5 Years and Particulars 1 - 3 Years 3 - 5 Years
Particulars 1-3 Years 3-5 Years Year above
Year above
Derivative financial instruments
As at 31st March 2023
As at 31st March 2023
Trade Payable: 1,166.31 - - -
Gross settled:
Debt Securities:
Foreign exchange forward contracts
- Principal 8,930.26 8,371.75 1,677.65 5,978.00
- Payable 0.13 20.65 - -
- Interest 1,918.22 2,229.15 1,253.08 1,931.27
- Receivable - - - -
Borrowings (Other than Debt Securities):
Interest Rate swaps
- Principal 16,514.38 18,999.66 5,728.83 0.45
- Payable - 23.61 - -
- Interest 2,344.83 2,198.32 349.08 -
- Receivable - - - -
Deposit:
Currency swaps
- Principal 1,836.02 3,269.40 436.41 -
- Payable 50.09 101.83 - -
- Interest 395.60 675.37 140.48 -
- Receivable - - - -
Subordinated liabilities:
Total Payable 50.22 146.09 - -
- Principal 140.14 449.32 1,380.25 1,493.73
Total Receivable - - - -
- Interest 294.46 541.38 449.18 527.86
As at 31st March 2022
Other financial liabilities: 1,867.54 288.90 112.95 114.89
Gross settled:
Total 35,407.76 37,023.25 11,527.91 10,046.20
Foreign exchange forward contracts
As at 31st March 2022
- Payable 37.17 - - -
Trade Payable: 1,005.28 - - -
- Receivable - - - -
Debt Securities:
Interest Rate swaps
- Principal 4,583.31 7,324.81 2,602.90 3,778.00
- Payable 2.67 - - -
- Interest 1,334.02 1,879.26 935.55 1,403.35
- Receivable - - - -
Borrowings (Other than Debt Securities):
Currency swaps
- Principal 11,522.87 13,078.99 1,409.82 0.11
- Payable - 48.93 102.62 -
- Interest 861.31 845.99 40.86 0.00
- Receivable 27.43 - - -
Deposit:
Total Payable 39.84 48.93 102.62 -
- Principal 4,769.74 3,141.74 535.58 -
Total Receivable 27.43 - - -
- Interest 733.25 597.90 101.26 -
Subordinated liabilities: 49.4 a) Financial Instruments regularly measured using Fair Value - recurring items
- Principal 70.00 414.46 1,108.01 1,560.98
- Interest 271.42 517.52 533.55 480.56 ₹ in crores

Other financial liabilities: 1,816.73 388.94 78.97 31.51 Fair Value Relationship
Significant
of
unobservable
Total 26,967.93 28,189.61 7,346.50 7,254.51 Type of Financial
As at 31st As at 31st Fair value Valuation unobservable
assets / Key inputs input(s)
instrument Category March March hierarchy technique(s) inputs to fair
financial for level 3
2023 2022 value and
hierarchy
b) Maturity profile of derivative financial liabilities liabilities sensitivity

The following table details the Company’s liquidity analysis for its derivative financial instruments. The 1) Foreign Financial Financial (35.87) (38.70) Level 2 Discounted Future cash flows
currency Assets / Instruments Cash Flow are estimated
table has been drawn up based on the undiscounted gross inflows and outflows on those derivatives forwards, (Liabilities) measured at based on forward
that require gross settlement. There is no derivative instruments that is settled on a net basis. When Interest rate FVTPL exchange rates
the amount payable or receivable is not fixed, the amount disclosed has been determined by reference swaps & (from observable
commodity forward exchange
to the projected interest rates as illustrated by the yield curves at the end of the reporting period.
derivatives rates at the end
of the reporting
period) and
contract forward
rates, discounted
at a rate that
reflects the credit
risk of various
counter parties.

348 Empowering Emerging India INTEGRATED REPORT 2022-23 349

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

₹ in crores b) Reconciliation of Level 3 fair value measurements of financial instruments measured at fair
Fair Value Relationship
value
Significant
of
Financial unobservable
Type of 31st
As at 31st
As at Fair value Valuation unobservable ₹ in crores
assets / Key inputs input(s)
instrument Category March March hierarchy technique(s) inputs to fair
financial for level 3 Unquoted
2023 2022 value and Convertible
liabilities hierarchy Particulars Equity Total
sensitivity debentures
investment
2) Currency Financial Financial (144.83) (116.90) Level 2 Black Strike rate, spot
options Assets / Instruments Scholes rate, time to Year ended 31st March 2023
(Liabilities) measured at valuation maturity, volatility Opening balance 42.38 - 42.38
FVTPL model and risk free
interest rate Total gains or losses recognised:
3) Investment Financial Financial – 834.47 Level 1 Quoted In Profit or loss
in Mutual Assets instrument market price
a) in profit or loss - - -
Funds measured at
FVTPL b) in other comprehensive income - - -
4) Investment Financial Financial 94.12 - Level 1 Quoted Fair value of -
in Commercial Assets instrument market price
Paper measured at Purchases made during the year - - -
FVTPL Disposals made during the year - - -
5) Investment Financial Financial 1,973.02 - Level 1 Quoted Transfers into Level 3 - - -
in Certificate Assets instrument market price
of deposits measured at Transfers out of Level 3 - - -
with banks FVTPL Closing balance 42.38 - 42.38
6) Investment Financial Financial 0.06 0.24 Level 1 Quoted Year ended 31st March 2022
in equity Assets instrument market price
instruments- measured at Opening balance 16.37 - 16.37
Quoted FVTPL Total gains or losses recognised:
7) Investment Financial Financial 42.39 42.39 Level 3 Discounted The discounted Terminal Increase or In Profit or loss
in equity Assets instrument Cash Flow cash flow method growth rate, decrease
instruments- designated at used the future Weighted in multiple a) in profit or loss - - -
Unquoted FVOCI free cash flows average cost will result in b) in other comprehensive income 26.01 - 26.01
of the Company of capital. increase or
discounted by decrease in Fair value of -
firm's WACC plus valuation. Purchases made during the year - - -
a risk factor
measured by beta, Issues made during the year - - -
to arrive at the Disposals made during the year - - -
present value.
The key inputs Transfers into Level 3 - - -
includes projection Transfers out of Level 3 - - -
of financial
statements (key Closing balance 42.38 - 42.38
value driving
factors), the
cost of capital
c) Equity Investments designated at Fair value through Other Comprehensive Income
to discount the The Company has made the below equity investments neither for the purpose of trading nor for the
projected cash
purpose of acquiring controlling stake, and accordingly, the investment has been classified in other
flows.
comprehensive income as per Ind AS 109.5.7.5.
8) Investment Financial Financial 5,117.89 4,662.84 Level 1 Quoted
in Bonds Assets instrument market price
and Govt measured at
securities. FVOCI ₹ in crores
Particulars 31st March 2023 31st March 2022
The Company doesn’t carry any financial asset or liability which it fair values on a non recurring basis. Equity investment in Smartshift Logistic Solutions Private Limited
(formerly Known as Orizonte Business Solutions Limited)
Fair Value of Investments 42.38 42.38

There are no disposal of investment during the year ended 31 st March 2023 and 2022 respectively.

350 Empowering Emerging India INTEGRATED REPORT 2022-23 351

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

d) Financial Instruments measured at amortised cost Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve months),
₹ in crores
the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value.
Carrying Such instruments include: cash and balances, trade receivables, balances other than cash and cash
Fair value Fair value
Particulars Value
equivalents, trade payables and investment & borrowings in commercial papers. Such amounts have
Level 1 Level 2 Level 3
been classified as Level 2 on the basis that no adjustments have been made to the balances in the
As at 31st March 2023 balance sheet.
Financial assets
a) Cash and cash equivalent 249.75 249.75 249.75 - - Loans and advances to customers
b) Bank balances other than cash and cash 2,582.31 2,582.31 2,582.31 - - The fair values of loans and receivables are calculated using a portfolio-based approach, grouping
equivalent loans as far as possible into homogenous groups based on similar characteristics. The fair value is
c) Trade Receivables 21.84 21.02 - 21.02 - then extrapolated to the portfolio using discounted cash flow models that incorporate interest rate
d) Loans and advances to customers 79,454.73 78,968.47 - - 78,968.47 estimates considering all significant characteristics of the loans. This fair value is then reduced by
e) Financial investments - at amortised cost 1,435.13 1,444.62 1,299.40 145.22 - impairment allowance which is already calculated incorporating probability of defaults and loss given
defaults to arrive at fair value net of risk.
f) Other financial assets 1,589.28 1,645.04 - 1,645.04 -
Total 85,333.04 84,911.21 4,131.46 1,811.28 78,968.47 Financial Investments
Financial liabilities
For Government Securities, the market value of the respective Government Stock as on date of
a) Trade Payables 1,166.31 1,166.31 - 1,166.31 - reporting has been considered for fair value computations. Since market quotes are not available in
b) Debt securities 24,745.07 25,365.56 25,365.56 - - the absence of any trades, the carrying amount of Secured redeemable non-convertible debentures is
c) Borrowings other than debt securities 41,234.06 41,412.52 - 41,412.52 - considered as the fair value.
d) Deposits 5,524.60 5,943.63 - 5,943.63 -
e) Subordinated Liabilities 3,442.13 3,764.28 3,764.28 - - Issued debt
f) Other financial liability 2,384.28 2,376.74 - 2,376.74 - The fair value of issued debt is estimated by a discounted cash flow model incorporating interest rate
Total 78,496.45 80,029.04 29,129.84 50,899.20 - estimates from market-observable data such as secondary prices for its traded debt itself.
As at 31st March 2022
Deposits from public
Financial assets
The fair value of deposits received from public is estimated by discounting the future cash flows
a) Cash and cash equivalent 327.87 327.87 327.87 - -
considering the interest rate applicable on the reporting date for that class of deposits segregated by
b) Bank balances other than cash and cash 3,822.82 3,822.82 3,822.82 - - their tenure and cumulative/ non-cumulative scheme.
equivalent
c) Trade Receivables 9.09 9.09 - 9.09 - Except for the above, carrying value of other financial assets/liabilities represent reasonable estimate
d) Loans and advances to customers 60,444.64 60,767.89 - - 60,767.89 of fair value.
e) Financial investments - at amortised cost 1,530.21 1,583.85 1,358.47 225.38 -
f) Other financial assets 223.13 226.63 - 226.63 -
Total 66,357.76 66,738.15 5,509.16 461.10 60,767.89
Financial liabilities
a) Trade Payables 1,005.28 1,005.28 - 1,005.28 -
b) Debt securities 18,252.71 19,771.64 19,771.64 - -
c) Borrowings other than debt securities 26,005.17 26,054.92 - 26,054.92 -
d) Deposits 8,426.19 9,318.36 - 9,318.36 -
e) Subordinated Liabilities 3,129.85 3,570.69 3,570.69 - -
f) Other financial liability 2,316.17 2,318.77 - 2,318.77 -
Total 59,135.37 62,039.66 23,342.33 38,697.33 -

There were no transfers between Level 1 and Level 2.

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

352 Empowering Emerging India INTEGRATED REPORT 2022-23 353

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 50 Note : 51
Maturity analysis of assets and liabilities Related party disclosures:

The table below shows the maturity analysis of assets and liabilities according to when they are expected to i) As per Ind AS 24 on ‘Related party disclosures’, the related parties of the Company are as follows:
be recovered or settled.
a) Holding Company Mahindra & Mahindra Limited
b) Subsidiary Companies: Mahindra Insurance Brokers Limited
₹ in crores (entities on whom control is exercised) Mahindra Rural Housing Finance Limited
As at 31st March 2023 As at 31st March 2022 Mahindra Ideal Finance Limited
Within After Within After Mahindra & Mahindra Financial Services Ltd Employees' Stock Option
Total Total
12 months 12 months 12 months 12 months Trust
Assets MRHFL Employees Welfare Trust
Cash and cash equivalents 249.75 - 249.75 327.87 - 327.87 Mahindra Finance CSR Foundation
Bank balance 2,582.31 - 2,582.31 3,822.82 - 3,822.82 c) Fellow Subsidiaries: Mahindra USA, Inc
Derivative financial instruments - - - 26.63 - 26.63 
(entities with whom the Company has NBS International Limited
Trade receivables 21.84 - 21.84 9.09 - 9.09 transactions)
Loans 32,000.40 47,454.33 79,454.73 26,878.84 33,565.80 60,444.64 Mahindra First Choice Wheels Limited
Investments 2,784.59 7,204.03 9,988.62 1,472.42 6,967.85 8,440.27 Mahindra Defence Systems Limited
Other financial assets 170.95 1,418.33 1,589.28 63.90 159.23 223.13 Mahindra Integrated Business Solutions Limited
Current tax assets (Net) - 504.36 504.36 - 462.40 462.40 Meru Mobility Tech Private Limited
Deferred tax Assets (Net) - 637.24 637.24 - 836.42 836.42 Mahindra Construction Co. Limited
Property, plant and equipment - 681.20 681.20 - 383.10 383.10 Bristlecone India Limited
Other Intangible assets - 14.35 14.35 - 9.77 9.77 Mahindra Water Utilities Limited
Other non-financial assets 271.18 221.69 492.87 152.24 150.35 302.59 Gromax Agri Equipment Limited
Total Assets 38,081.02 58,135.53 96,216.55 32,753.81 42,534.92 75,288.73 Mahindra Electric Mobility Limited
Liabilities Mahindra Holidays & Resorts India Limited
Financial Liabilities New Democratic Electoral Trust
Derivative financial instruments 49.36 131.34 180.70 38.70 143.52 182.22 Mahindra Susten Pvt Limited
Trade Payables Mahindra & Mahindra Contech Pvt Limited
i) total outstanding dues of micro enterprises - - - - - - Mahindra Two wheeler Limited
and small enterprises Mahindra Sumit Agriscience Limited
ii) total outstanding dues of creditors 1,166.31 - 1,166.31 1,005.28 - 1,005.28 Swaraj Engines Limited
other than micro enterprises and small
enterprises Martial Soleren Pvt. Limited

Debt Securities 8,775.60 15,969.47 24,745.07 4,575.71 13,677.00 18,252.71 Mahindra Heavy Engines Limited

Borrowings (Other than Debt Securities) 16,514.37 24,719.69 41,234.06 11,520.88 14,484.29 26,005.17 Mahindra Teqo Pvt Limited

Deposits 1,834.08 3,690.52 5,524.60 4,764.54 3,661.65 8,426.19 d) Joint Ventures / Associates: Mahindra Finance USA, Inc

Subordinated Liabilities 140.12 3,302.01 3,442.13 69.94 3,059.91 3,129.85 (entities on whom control is exercised) Mahindra Manulife Investment Management Pvt. Ltd.

Other financial liabilities 1,867.54 516.74 2,384.28 1,826.51 489.66 2,316.17 Mahindra Manulife Trustee Pvt. Ltd.

Non-Financial Liabilities
Current tax liabilities (Net) 51.75 13.92 65.67 - 13.92 13.92
Provisions 167.25 93.49 260.74 118.27 103.08 221.35
Other non-financial liabilities 114.30 9.78 124.08 105.35 2.43 107.78
Total Liabilities 30,680.68 48,446.96 79,127.64 24,025.18 35,635.46 59,660.64
Net 7,400.34 9,688.57 17,088.91 8,728.63 6,899.46 15,628.09
Other undrawn commitments 154.30 - 154.30 44.77 - 44.77
Total commitments 154.30 - 154.30 44.77 - 44.77

354 Empowering Emerging India INTEGRATED REPORT 2022-23 355

356

Company:

transactions)
Financial
st

Empowering Emerging India

f) Key Management Personnel:

(where there are transactions)

for the year ended 31 March 2023

(entities with whom the Company has

e) Joint Ventures / Associates of Holding

g) Relatives of Key Management Personnel

Statements

Dr. Anish Shah

Mr. C. B. Bhave

Ms. Janaki Iyer

Mr. Dinesh Iyer
Mr. Ramesh Iyer

Mr. Milind Sarwate

Dr. Rebecca Nugent

Ms. Rama Bijapurkar

Mr. Amit Kumar Sinha

Tech Mahindra Limited

Mr. Dhananjay Mungale

PSL Media & Communications Ltd
Smartshift Logistics Solutions Pvt Ltd.

Mr. Diwakar Gupta (w.e.f. 01 January 2023)

Mr. Siddhartha Mohanty (w.e.f. 01 April 2022)
Notes forming part of the Standalone

Mr. Amit Raje (Ceased to be a director w.e.f. 28 July 2022)

ii) The nature and volume of transactions of the Company during the year with above related parties were as follows:
RELATED PARTY TRANSACTIONS

₹ in crores
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
Financial
Corporate

31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
st

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Overview & IR

Subvention / Incentive income

- Mahindra & Mahindra Limited 72.97 16.34 - - - - - - - - - -
- Mahindra Electric Mobility Limited - - - - 2.35 0.30 - - - - - -
Report
Board’s

Lease rental income

for the year ended 31 March 2023

- Mahindra & Mahindra Limited 59.08 20.38 - - - - - - - - - -

- Mahindra Electric Mobility Limited - - - - 0.30 0.20 - - - - - -
-M
 ahindra & Mahindra Contech Private - - - - 0.04 0.01 - - - - - -
Limited
Analysis

- Swaraj Engines Limited - - - - 0.13 - - - - - - -

Statements
Management

- Mahindra Susten Private Limited - - - - 0.29 - - - - - - -

Discussion and

- Mahindra Heavy Engines Limited - - - - 0.21 - - - - - - -

- Mahindra First Choice Wheels Limited - - - - 0.19 - - - - - - -
- Mahindra Solarize Private Limited - - - - 0.17 - - - - - - -
- Mahindra Integrated Business solution - - - - 0.08 - - - - - - -
Report on
Corporate
Governance

- Mahindra Teqo - - - - 0.08 - - - - - - -

- Mahindra Summit Agriscience Limited - - - - 0.09 - - - - - - -
- Mahindra Two Wheelers Limited - - - - 0.10 - - - - - - -
Interest income
Report
Business

- Mahindra & Mahindra Limited 1.47 3.61 - - - - - - - - - -

Income from sharing services
Responsibility
& Sustainability

- Mahindra & Mahindra Limited 0.18 0.57 - - - - - - - - - -

-M
 ahindra Rural Housing Finance - - 5.29 6.48 - - - - - - - -
Limited
Financial

- Mahindra Insurance Brokers Limited - - 3.30 2.18 - - - - - - - -

Standalone

Statements

-M
 ahindra Manulife Investment - - - - - - 0.62 0.62 - - - -
Notes forming part of the Standalone

Management Pvt Ltd

C

-M
 ahindra Manulife Trustee Company - - - - - - 0.01 0.01 - - - -
Pvt Ltd
INTEGRATED REPORT 2022-23

Dividend Income
Financial

-M
 ahindra Rural Housing Finance - - - - - - - - - - - -
Statements
 onsolidated

Limited
357
 ₹ in crores

358
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
- Mahindra Insurance Brokers Limited - - 4.12 2.47 - - - - - - - -
Financial
st
Interest expense
- Mahindra & Mahindra Limited 0.47 3.20 - - - - - - - - - -

Empowering Emerging India

- Mahindra Insurance Brokers Limited - - 14.78 7.66 - - - - - - - -
- Tech Mahindra Limited - - - - 10.80 15.84 - - - - - -
- Swaraj Engines Limited - - - - - - - - - - - -
for the year ended 31 March 2023

-M
 ahindra Vehicle Manufacturers - - - - - - - - - - - -
Limited
- Mahindra Intertrade Limited - - - - - - - - - - - -
- Mahindra Water Utilities Limited - - - - 0.15 0.28 - - - - - -
-M
 ahindra Engineering & Chemical - - - - - - - - - - - -
Products Ltd
Statements

- PSL Media & Communications Ltd - - - - 0.04 0.06 - - - - - -

- Mahindra Holidays & Resorts India Ltd - - - - 8.02 9.45 - - - - - -
- Mr. Ramesh Iyer - - - - - - - - 0.05 0.05 - -
- Others - - - - - - - - - - 0.28 0.31
Other expenses
- Mahindra & Mahindra Limited 53.44 40.32 - - - - - - - - - -
- Mahindra Insurance Brokers Limited - - 3.67 49.49 - - - - - - - -
-M
 ahindra Rural Housing Finance - - - 0.02 - - - - - - - -
Limited
- Mahindra First Choice Wheels Limited - - - - 22.83 17.86 - - - - - -
- Mahindra Defence Systems Ltd - - - - 2.28 3.68 - - - - - -
- Bristlecone India Limited - - - - 0.02 0.35 - - - - - -
-M
 ahindra Vehicle Manufacturers - - - - - - - - - - - -
Limited
- Mahindra Integrated Business Solutions - - - - 45.42 24.47 - - - - - -
Limited
Notes forming part of the Standalone

-M
 ahindra Engineering & Chemical - - - - - - - - - - - -
Products Ltd
- Mahindra Finance CSR Foundation - - 0.20 0.01 - - - - - - - -
- NBS International Limited - - - - 0.30 0.20 - - - - - -
- Meru Mobility Tech Private Limited - - - - 0.02 - - - - - - -
- Mahindra Solarize Private Limited - - - - 0.05 - - - - - - -

₹ in crores
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
- Mahindra Holidays & Resorts India Ltd - - - - 0.03 - - - - - - -
Financial
Corporate

st

- Others - - - - 0.66 0.06 - - - - - -

Overview & IR

Remuneration
- Mr. Ramesh Iyer - - - - - - - - 7.09 7.46 - -
- Mr. Amit Raje - - - - - - - - 8.37 3.51 - -
Report
Board’s

Sitting fees and commission

for the year ended 31 March 2023

- Mr. C. B. Bhave - - - - - - - - 0.52 0.46 - -

- Mr. Dhananjay Mungale - - - - - - - - 0.53 0.47 - -
- Ms. Rama Bijapurkar - - - - - - - - 0.48 0.42 - -
- Mr. Milind Sarwate - - - - - - - - 0.56 0.47 - -
Analysis

- Dr. Rebecca Nugent - - - - - - - - 0.42 0.38 - -

- Mr. Diwakar Gupta - - - - - - - - 0.12 - - -
Statements
Management
Discussion and

Reimbursement from parties

- Mahindra & Mahindra Limited 16.20 35.20 - - - - - - - - - -
- Gromax Agri Equipment Limited - - - - 4.09 4.65 - - - - - -
-M
 ahindra Manulife Investment - - - - - - - 0.06 - - - -
Report on
Corporate
Governance

Management Pvt Ltd

-M
 ahindra Rural Housing Finance - - - - - - - - - - - -
Limited
- Mahindra Insurance Brokers Limited - - - - - - - - - - - -
Report

Reimbursement to parties
Business

- Mahindra Insurance Brokers Limited - - - - - - - - - - - -

Responsibility

-M
 ahindra Rural Housing Finance - - 0.32 1.76 - - - - - - - -
& Sustainability

Limited
- Mahindra USA, Inc - - - - 2.56 2.33 - - - - - -
- Mahindra Electric Mobility Limited - - - - - 0.02 - - - - - -
Financial

- NBS International Limited - - - - - - - - - - - -

Standalone

Statements

Notes forming part of the Standalone

Purchase of fixed assets (incl

Capital advances)
C

- Mahindra & Mahindra Limited 130.34 114.27 - - - - - - - - - -

- Mahindra First Choice Wheels Limited - - - - - - - - - - - -
INTEGRATED REPORT 2022-23
Financial

- NBS International Limited - - - - 9.77 5.51 - - - - - -

Statements
 onsolidated

359
 ₹ in crores

360
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Sale of fixed assets
Financial
st
-M
 ahindra Rural Housing Finance - - 0.02 0.21 - - - - - - - -
Limited

Empowering Emerging India

Investments made
-M
 ahindra Manulife Investment - - - - - - - - - - - -
Management Pvt Ltd
for the year ended 31 March 2023

- Mahindra Ideal Finance Ltd - - - 33.97 - - - - - - - -

- Mahindra Finance CSR Foundation - - - - - - - - - - - -
- New Democratic Electoral Trust - - - - - - - - - - - -
- Smartshift Logistics Solutions Pvt Ltd. - - - - - - - - - - - -
Fixed deposits taken
- Mahindra Insurance Brokers Limited - - 47.50 184.65 - - - - - - - -
Statements

- Mahindra & Mahindra Limited 2.10 11.99 - - - - - - - - - -

- PSL Media & Communications Ltd - - - - 0.86 0.90 - - - - - -
- Mahindra Holidays & Resorts India Ltd - - - - - 5.00 - - - - - -
- Mr. Ramesh Iyer - - - - - - - - 0.80 0.91 - -
- Others - - - - - - - - - - 2.18 1.82
Fixed deposits matured
- Mahindra Insurance Brokers Limited - - 93.65 73.50 - - - - - - - -
- PSL Media & Communications Ltd - - - - 1.55 0.90 - - - - - -
- Mahindra & Mahindra Limited 13.01 2.32 - - - - - - - - - -
- Mahindra Holidays & Resorts India Ltd - - - - - 15.00 - - - - - -
- Mr. Ramesh Iyer - - - - - - - - 0.91 0.79 - -
- Others - - - - - - - - - - 1.83 2.03
Dividend paid
- Mahindra & Mahindra Limited 231.98 51.55 - - - - - - - - - -
-M
 ahindra & Mahindra Financial - - 0.92 0.27 - - - - - - - -
Notes forming part of the Standalone

Services Ltd Employees' Stock Option

Trust
- Mr. Ramesh Iyer - - - - - - - - 0.59 0.14 - -
- Ms. Rama Bijapurkar - - - - - - - - 0.01 0.00 - -
- Mr. Dhananjay Mungale - - - - - - - - 0.00 0.00 - -
- Others - - - - - - - - 0.00 - 0.00 -

₹ in crores
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Inter corporate deposits taken
Financial
Corporate

st

- Mahindra & Mahindra Limited - - - - - - - - - - - -

Overview & IR

- Mahindra Insurance Brokers Limited - - 93.00 4.00 - - - - - - - -

- Tech Mahindra Limited - - - - - 200.00 - - - - - -
-M
 ahindra Vehicle Manufacturers - - - - - - - - - - - -
Report
Board’s

Limited
for the year ended 31 March 2023

- Swaraj Engines Limited - - - - - - - - - - - -

- Mahindra Water Utilities Limited - - - - - 4.26 - - - - - -
- Mahindra Intertrade Limited - - - - - - - - - - - -
- Mahindra Holidays & Resorts India Ltd - - - - - 140.00 - - - - - -
Analysis

Inter corporate deposits repaid /

matured
Statements
Management
Discussion and

- Mahindra & Mahindra Limited - - - - - - - - - - - -

- Mahindra Insurance Brokers Limited - - - 4.00 - - - - - - - -
- Tech Mahindra Limited - - - - - 500.00 - - - - - -
-M
 ahindra Vehicle Manufacturers - - - - - - - - - - - -
Report on
Corporate

Limited
Governance

- Swaraj Engines Limited - - - - - - - - - - - -

- Mahindra Water Utilities Limited - - - - 4.26 3.75 - - - - - -
- Mahindra Holidays & Resorts India Ltd - - - - - 180.00 - - - - - -
Report

- Mahindra Intertrade Limited - - - - - - - - - - - -

Business

Debentures issued
Responsibility

- Mahindra & Mahindra Limited - - - - - - - - - - - -

& Sustainability

Debentures matured
- Mahindra & Mahindra Limited - 95.00 - - - - - - - - - -
Balances as at the end of the year
Financial
Standalone

Receivables
Statements

Notes forming part of the Standalone

- Mahindra & Mahindra Limited 22.56 6.81 - - - - - - - - - -

- Mahindra Insurance Brokers Limited - - 0.21 - - - - - - - - -
C

-M
 ahindra Rural Housing Finance - - 0.01 1.06 - - - - - - - -
Limited
INTEGRATED REPORT 2022-23
Financial

-M
 ahindra Manulife Investment - - - - - - - 0.05 - - - -
Statements
 onsolidated

Management Pvt Ltd

361
 ₹ in crores

362
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
-M
 ahindra Manulife Trustee Company - - - - - - 0.01 0.01 - - - -
Financial
Pvt Ltd
st

- NBS International Limited - - - - 0.92 1.41 - - - - - -

Empowering Emerging India

- Mahindra Electric Mobility Limited - - - - - 0.10 - - - - - -
- Mahindra First Choice Wheels Limited - - - - 0.06 - - - - - - -
- Swaraj Engines Limited - - - - 0.04 - - - - - - -
for the year ended 31 March 2023

- Mahindra Two Wheelers Limited - - - - - - - - - - - -

- Mahindra Summit Agriscience Limited - - - - 0.03 - - - - - - -
- Mahindra Teqo - - - - 0.01 - - - - - - -
Loan given (including interest - - - - - - - - - - - -
accrued but not due)
- 2 x 2 Logistics Private Limited - - - - - - - - - - - -
Statements

- Mahindra Construction Co. Ltd. - - - - - - - - - - - -

- Smartshift Logistics Solutions Pvt Ltd. - - - - - - - - - - - -
Investments
-M
 ahindra Rural Housing Finance - - 799.30 799.30 - - - - - - - -
Limited
- Mahindra Insurance Brokers Limited - - 0.45 0.45 - - - - - - - -
-M
 ahindra Manulife Investment - - - - - - 195.30 195.30 - - - -
Management Pvt Ltd
-M
 ahindra Manulife Trustee Company - - - - - - 0.50 0.50 - - - -
Pvt Ltd
- Mahindra Finance CSR Foundation - - 0.00 0.00 - - - - - - - -
- Mahindra Finance USA, Inc - - - - - - 210.55 210.55 - - - -
- Mahindra Ideal Finance Ltd - - 77.97 77.97 - - - - - - - -
- New Democratic Electoral Trust - - - - 0.02 0.02 - - - - - -
- Smartshift Logistics Solutions Pvt Ltd. - - - - 9.50 9.50 - - - - - -
Notes forming part of the Standalone

Payables
- Mahindra & Mahindra Limited 1.56 - - - - - - - - - - -
- Mahindra Insurance Brokers Limited - - - 10.72 - - - - - - -
- Mahindra First Choice Wheels Limited - - - - 5.76 6.71 - - - - - -
- Tech Mahindra Limited - - - - - - - - - - - -
- Mahindra USA, Inc - - - - 0.37 0.16 - - - - - -

₹ in crores
Fellow Subsidiaries/ Relatives of Key
Subsidiary Key Management
Holding Company Associate of Associate companies Management
Companies Personnel
Holding Company Personnel
Particulars Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
-M
 ahindra Integrated Business - - - - 0.59 0.40 - - - - - -
Financial
Corporate

Solutions Limited
st
Overview & IR

- NBS International Limited - - - - - - - - - - - -

- Mahindra Defence Systems Ltd - - - - 0.59 - - - - - - -
- Others - - - - - 0.01 - - - - - -
Report
Board’s

Inter corporate deposits taken

for the year ended 31 March 2023

(including interest accrued but not

due)
- Mahindra & Mahindra Limited - - - - - - - - - - - -
- Mahindra Insurance Brokers Limited - - 100.64 4.02 - - - - - - - -
- Tech Mahindra Limited - - - - 217.26 207.54 - - - - - -
Analysis

- Mahindra Water Utilities Limited - - - - - 4.28 - - - - - -

Statements
Management

- Mahindra Intertrade Limited - - - - - 0.01 - - - - - -

Discussion and

- Mahindra Holidays & Resorts India Ltd - - - - 152.28 145.35 - - - - - -

Fixed deposits (including interest
accrued but not due)
Report on
Corporate

- Mahindra & Mahindra Limited 4.48 15.69 - - - - - - - - - -

Governance

- Mahindra Insurance Brokers Limited - - 157.48 199.88 - - - - - - - -

- PSL Media & Communications Ltd - - - - 0.21 0.93 - - - - - -
- Mahindra Holidays & Resorts India Ltd - - - - 5.29 5.01 - - - - - -
Report

- Mr. Ramesh Iyer - - - - - - - - 0.01 0.92 - -

Business

- Others - - - - - - - - - - 0.06 4.39

Responsibility
& Sustainability

Key Management Personnel as defined in Ind AS 24 - Related Party Disclosures

Financial
Standalone

Statements

Notes forming part of the Standalone

C

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

363
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

iii) Details of related party transactions with Key Management Personnel (KMP) are as under : iv) Disclosure required under Section 186 (4) of the Companies Act, 2013
Key management personnel are those individuals who have the authority and responsibility for planning and
As at 31st March 2023
exercising power to directly or indirectly control the activities of the Company or its employees. Accordingly,
₹ in crores
the Company considers any Director, including independent and non-executive directors, to be key management
Balance as on
personnel for the purposes of IND AS 24 - Related Party Disclosures. Particulars Relationship
Balance as on Advances / Repayments/
31st March
1 April 2022 investments sale
2023

₹ in crores
(A) Loans and advances - - - -
Name of the KMP Nature of transactions 31st March 2023 31st March 2022 - - - -

- Mr. Ramesh Iyer (Vice-Chairman & Managing

Director) (B) Unsecured redeemable - - - -
Gross Salary including 6.77 4.47 non-convertible subordinate
perquisites debentures
Commission - 1.28 - - - -
Stock Option - 1.45 (C) Investments:
Others - Contribution to Funds 0.39 0.33 Mahindra Insurance Brokers Subsidiary 0.45 - - 0.45
7.16 7.53 Limited
Mr. Amit Raje (Whole-time Director & Chief Operating Mahindra Rural Housing Subsidiary 799.30 - - 799.30
Officer Finance Limited
- Digital Finance - Digital Business Unit) Mahindra Manulife Investment Joint Venture 195.30 - - 195.30
(Ceased to be a director w.e.f 28 July 2022) Gross Salary including 4.02 2.79 Management Private Limited
perquisites Mahindra Manulife Trustee Joint Venture 0.50 - - 0.50
Commission - - Private Limited
Stock Option 4.35 0.70 Mahindra Finance CSR Wholly owned 0.00 - - 0.00
Others - Contribution to Funds 0.07 0.09 Foundation Subsidiary
8.44 3.58 Mahindra Finance USA, LLC Joint Venture 210.55 - - 210.55
Mr. Dhananjay Mungale (Independent Director) Mahindra Ideal Finance Limited, Subsidiary 77.97 - - 77.97
Commission 0.30 0.32 Sri Lanka (considered as
Sitting fees 0.18 0.17 Subsidiary w.e.f. 8 July 2021)
(Formerly known as Ideal
0.48 0.49
Finance Limited)
Ms. Rama Bijapurkar (Independent Director)
Smartshift Logistics Solutions Fellow Associate 9.50 - - 9.50
Commission 0.30 0.25
Private Limited (refer note
Sitting fees 0.13 0.12 no. (iii))
0.43 0.37 New Democratic Electoral Fellow 0.02 - - 0.02
Mr. C.B. Bhave (Independent Director) Trust subsidiary
Commission 0.30 0.25 1,293.59 - - 1,293.59
Sitting fees 0.17 0.16 Total 1,293.59 - - 1,293.59
0.47 0.41
Mr. Milind Sarwate (Independent Director)
Commission 0.30 0.21
Sitting fees 0.21 0.13
0.51 0.34
Dr. Rebecca Nugent
Commission 0.30 0.02
Sitting fees 0.07 0.07
0.37 0.09
Diwakar Gupta
(Appointed w.e.f. 1 January 2023) Commission - -
Sitting fees 0.03 -
0.03 -

364 Empowering Emerging India INTEGRATED REPORT 2022-23 365

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

As at 31st March 2022 Note : 52

₹ in crores
Schedule to the Balance Sheet of a Non-Banking Financial Company as required under Master
Balance as
Particulars Relation
Balance as on Advances / Repayments/
on 31st March
Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking
1 April 2021 investments sale
2022 Company and Deposit taking Company (Reserve Bank) Directions, 2016, as amended.
(A) Loans and advances - - - -
- - - - ₹ in crores
(B) Unsecured redeemable non- As at 31st March 2023 As at 31st March 2022
convertible subordinate Sr.
Particulars Amount Amount Amount Amount
No.
debentures Outstanding Overdue Outstanding Overdue
- - - - Liabilities
(C) Investments 1) Loans and advances availed by the NBFC

Mahindra Insurance Brokers Subsidiary 0.45 - - 0.45 inclusive of interest accrued thereon but
Limited not paid :

Mahindra Rural Housing Finance Subsidiary 799.30 - - 799.30 (a) Debentures :
Limited - Secured 20,716.06 - 17,843.39 -

Mahindra Manulife Investment Joint Venture 195.30 - - 195.30 - Unsecured 1,076.04 - 860.69 -
Management Private Limited (b) Deferred Credits - - - -

Mahindra Manulife Trustee Private Joint Venture 0.50 - - 0.50 (c) Term Loans 30,820.00 - 15,335.00 -
Limited
(d) Inter-corporate loans and Other Borrowings 984.66 - 361.18 -

Mahindra Finance CSR Foundation Wholly owned 0.00 - - 0.00
(e) Commercial Paper 3,936.00 - 496.56 -
Subsidiary
(f) Public Deposits 5,309.42 - 7,352.38 -

Mahindra Finance USA, LLC Joint Venture 210.55 - - 210.55
(g) Fixed Deposits accepted from Corporates 564.80 - 1,658.15 -

Mahindra Ideal Finance Limited, Subsidiary 44.00 33.97 - 77.97
Sri Lanka (h) External Commercial Borrowings 2,583.92 - 2,216.79 -

Smartshift Logistics Solutions Fellow Associate 9.50 - - 9.50 (i) Associated liabilities in respect of 6,723.77 - 8,094.52 -
securitisation transactions
Private Limited (refer note no. (iii))
(j) Subordinate debt (including NCDs issued 3,705.34 - 3,373.29 -

New Democratic Electoral Trust Fellow 0.02 0.01 - 0.02
through Public issue)
subsidiary
(k) Other Short Term Loans and credit facilities 255.87 - 85.00 -
1,259.62 33.98 - 1,293.59
from banks
Total 1,259.62 33.98 - 1,293.59
2) Break-up of (1) (f) above (Outstanding
public deposits inclusive of interest accrued
Notes:
thereon but not paid) :
(a) In the form of Unsecured debentures - - - -
i) Above loans & advances and investments have been given for general business purposes of the recipient
and figures are at historical cost. (b) In the form of partly secured debentures i.e. - - - -
Debentures where there is a shortfall in the
value of security
ii) There were no guarantees given / securities provided during the year.
(c) Other public deposits 5,309.42 - 7,352.38 -

Amount Outstanding
As at As at
31st March 2023 31st March 2022
Asset side:
3) Break-up of Loans and Advances including bills receivables [other than
those included in (4) below] :
(a) Secured - -
(b) Unsecured 4,607.48 3,265.62
4) Break up of Leased Assets and stock on hire and hypothecation loans
counting towards AFC activities :
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease - -
(b) Operating lease 2.18 1.22

366 Empowering Emerging India INTEGRATED REPORT 2022-23 367

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

Amount Outstanding
6) Borrower group-wise classification assets financed as in (3) and (4) above :
As at As at
As at 31st March 2023 As at 31st March 2022
31st March 2023 31st March 2022
Amount net of provisions Amount net of provisions
(ii) Stock on hire including hire charges under sundry debtors : Category
(a) Assets on hire - - Secured Unsecured Total Secured Unsecured Total

(b) Repossessed Assets - - 1. Related Parties

(iii) Other loans counting towards AFC activities : (a) Subsidiaries - - - - - -
(a) Loans where assets have been repossessed 70.23 167.27 (b) Companies in the same group - - - - - -
(b) Loans other than (a) above 74,796.68 57,019.62 (c) Other related parties - - - - - -
5) Break-up of Investments : 2. Other than related parties 74,866.91 4,609.66 79,476.57 57,186.89 3,266.84 60,453.73
Current Investments : Total 74,866.91 4,609.66 79,476.57 57,186.89 3,266.84 60,453.73
1. Quoted :
7) Investor group-wise classification of all investments (current and long term) in shares and
(i) Shares :
securities (both quoted and unquoted) :
(a) Equity - -
(b) Preference - - As at 31st March 2023 As at 31st March 2022
(ii) Debentures and Bonds 8.92 6.86 Market Value/ Market Value/
Book Value Book Value
(iii) Units of mutual funds - 834.47 Break up or Break up or
Category (net of (net of
fair value or fair value or
(iv) Government Securities 588.58 467.15 provisions) provisions)
NAV NAV
(v) Investments in Certificate of Deposits with Banks 1,973.02 - 1. Related Parties
(vi) Investments in Commercial Papers 94.12 - (a) Subsidiaries 877.72 877.72 877.72 877.72
2. Unquoted : (b) Companies in the same group 448.76 448.76 448.76 448.76
(i) Shares : (c) Other related parties - - - -
(a) Equity - - 2. Other than related parties 8,717.63 8,662.14 7,115.40 7,113.79
(b) Preference - - Total 10,044.11 9,988.62 8,441.88 8,440.27
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - - 8) Other information:
(iv) Government Securities - -
As at As at
(v) Certificate of Deposits with Banks - -
Particulars 31st March 2023 31st March 2022
(vi) Commercial Papers - -
Amount Amount
(vii) Investments in Pass Through Certificates under securitisation transactions 119.95 163.93
i) Gross Non-Performing Assets :
(viii)Investment in Triparty Repo Dealing System (TREPS) - -
(a) Related parties - -
Long Term Investments :
(b) Other than related parties 3,717.10 4,976.30
1. Quoted :
ii) Net Non-Performing Assets :
(i) Shares :
(a) Related parties - -
(a) Equity 0.06 0.24
(b) Other than related parties 1,507.08 2,085.95
(b) Preference - -
iii) Assets acquired in satisfaction of debt : 1.65 1.83
(ii) Debentures and Bonds (Bonds of FCI NCDs of NABARD) 377.40 286.55
(iii) Units of mutual funds - -
(iv) Government Securities 5,550.13 5,340.94
2. Unquoted :
(i) Shares :
(a) Equity 1,271.97 1,326.48
(b) Preference - -
(ii) Debentures and Bonds 1.59 1.59
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Investments in Pass Through Certificates under securitisation transactions 2.88 12.06

368 Empowering Emerging India INTEGRATED REPORT 2022-23 369

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 53 III) Derivatives

Balance sheet disclosures as required under Master Direction - Non-Banking Financial a) Forward Rate Agreement (FRA) / Interest Rate Swap (IRS)
Company - Systemically Important Non-Deposit taking Company and Deposit taking Company
(Reserve Bank) Directions, 2016, as amended ₹ in crores

The Reserve Bank of India, vide its circular reference RBI/2019-20/170 DOR (NBFC).CC.PD. As at As at
31st March 2023 31st March 2022
No. 109/22.10.106/2019-20 dated 13 March 2020 outlined the regulatory guidance in relation to Ind AS
financial statements from financial year 2019-20 onwards. This included guidance for computation of ‘owned (i) The notional principal of swap agreements 2,731.11 2,258.50
funds, ‘net owned funds’ and ‘regulatory capital’. (ii) Losses which would be incurred if counterparties failed to fulfil their obligations - -
under the agreements
I) Capital (iii) Collateral required by the Company upon entering into swaps - -
(iv) Concentration of credit risk arising from the swaps - -
As at As at (v) The fair value of the swap book (Asset / (Liability (net)) (180.70) (155.60)
Particulars
31st March 2023 31st March 2022

CRAR (%) 22.52% 27.75% Exchange Traded Interest Rate (IR) Derivative
CRAR-Tier I Capital (%) 19.87% 24.24%
CRAR-Tier II Capital (%) 2.65% 3.51% The Company has not entered into any exchange traded derivative.
Amount of subordinated debt raised as Tier-II capital (₹ in crores) 380.00 132.90
b) Exchange Traded Interest Rate (IR) Derivatives
Amount raised by issue of Perpetual Debt Instruments - -
The Company is not carrying out any activity of providing Derivative cover to third parties.
II) Investments
c) Disclosures on Risk Exposure in Derivatives
₹ in crores

As at As at Qualitative Disclosures –
Particulars
31st March 2023 31st March 2022
i) The Company undertakes the derivatives transaction to prudently hedge the risk in context of a particular
Value of Investments borrowing or to diversify sources of borrowing and to maintain fixed and floating borrowing mix. The
(i) Gross Value of Investments Company does not indulge into any derivative trading transactions. The Company reviews, the proposed
transaction and outline any considerations associated with the transaction, including identification of the
(a) In India 9,755.59 8,153.36
benefits and potential risks (worst case scenarios); an independent analysis of potential savings from the
(b) Outside India 288.52 288.52 proposed transaction. The Company evaluates all the risks inherent in the transaction viz., counter party
(ii) Provisions for Depreciation risk, Market Risk, Operational Risk, Basis Risk etc.
(a) In India 0.98 1.61
(b) Outside India 54.51 - ii) Credit risk is controlled by restricting the counterparties that the Company deals with, to those who
(iii) Net Value of Investments either have banking relationship with the Company or are internationally renowned or can provide sufficient
(a) In India 9,754.61 8,151.75
information. Market/Price risk arising from the fluctuations of interest rates and foreign exchange rates or
from other factors shall be closely monitored and controlled. Normally transaction entered for hedging,
(b) Outside India 234.01 288.52
will run till its life, irrespective of profit or loss.
Movement of provisions held towards depreciation on investments.
(i) Opening balance 1.61 0.41 However in case of exceptions it has to be un-winded only with prior approval of M.D / CFO / Treasurer.
(ii) Add : Provisions made during the year 54.51 1.61 Liquidity risk is controlled by restricting counterparties to those who have adequate facility, sufficient
(iii) Less : Write-off / write-back of excess provisions during the year (0.63) (0.41) information, and sizeable trading capacity and capability to enter into transactions in any markets around
(iv) Closing balance 55.49 1.61 the world.

iii) The respective functions of trading, confirmation and settlement should be performed by different
personnel. The front office and back-office role is well defined and segregated. All the derivatives transactions
is quarterly monitored and reviewed by CFO and Treasurer. All the derivative transactions have to be
reported to the Board of Directors on every quarterly board meetings including their financial positions.

370 Empowering Emerging India INTEGRATED REPORT 2022-23 371

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Quantitative Disclosures – ₹ in crores

d) Foreign currency non-repatriate loans availed:
Sr. As at As at
Particulars
No. 31st March 2023 31st March 2022

₹ in crores Others - -
As at 31 st March 2023 As at 31st March 2022 - Cash collateral term deposits with banks - -
Interest Interest (ii) Exposure to third party securitisations
Currency Currency
Rate Rate
Derivatives Derivatives First loss - -
Derivatives Derivatives
(i) Derivatives (Notional Principal Amount) Others - -
- For hedging 2,731.11 2,258.50 5) Sale consideration received for the securitised assets (for transactions executed 3,954.85 3,569.13
during the year)
(ii) Marked to Market Positions [1]
Gain/loss on sale on account of securitisation Nil Nil
(a) Asset (+) Estimated gain - 26.63
6) Form and quantum (outstanding value) of services provided by way of, liquidity 18.96 21.08
(b) Liability (-) Estimated loss (162.83) (17.87) (179.56) (2.67)
support, post-securitisation asset servicing, etc.
(iii) Credit Exposure [2] - - - - The Company has assumed Role of Servicer for all outstanding securitisation
(iv) Unhedged Exposures - - - - transactions. Servicing fee received during the financial year is disclosed.
7) Performance of facility provided. Please provide separately for each facility viz.
IV) Disclosures relating to Securitisation Credit enhancement, liquidity support, servicing agent etc. Mention percent in
bracket as of total value of facility provided.
a) 
Disclosures in the notes to the accounts in respect of securitisation transactions as required under
Master Direction – Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021 vide Credit Enhancement :
circular no. RBI/DOR/2021-22/85 DOR.STR.REC.53/21.04.177/2021-22 dated 24 September 2021. a) Opening Balance Outstanding 2,023.10 2,032.59
b) Additions during the year (Fresh Transactions) 427.31 395.19
c) Top Up during the year 538.82 47.44
₹ in crores
d) Reductions during the year (Matured Transactions) 346.95 404.68
Sr. As at As at e) Withdrawal during the year 538.82 47.44
Particulars
No. 31st March 2023 31st March 2022
f) Closing Balance Outstanding 2,103.46 2,023.10
1) No. of Special Purpose Entities (SPEs) holding assets for securitisation 21 21 Excess Interest Spread (EIS) (Amount Held In Trust):
transactions originated by the NBFC (only the Special Purpose Vehicles (SPVs)
relating to outstanding securitisation exposures to be reported here) a) Opening Balance Outstanding 679.46 438.12

2) Total amount of securitised assets as per books of the SPEs 6,718.60 8,089.20 b) Additions during the year (Fresh Transactions) 15.04 46.90

3) Total amount of exposures retained by the NBFC to comply with MRR as on the c) Top Up during the year 465.94 421.41
date of balance sheet - d) Reductions during the year (Matured Transactions) 194.88 116.48
a) Off-balance sheet exposures e) Withdrawal during the year - 110.49
First loss f) Closing Balance Outstanding 965.56 679.46
- Credit enhancement in form of corporate undertaking 1,981.38 1,718.05 8) Average default rate of portfolios observed in the past. Please provide breakup
Others - - separately for each asset class i.e. RMBS, Vehicle Loans etc#
#(may mention average default rate of previous 5 years)
b) On-balance sheet exposures
a) Agriculture & allied activities* 9.46% 10.82%
First loss
b) Auto Loans* 6.84% 7.48%
- Cash collateral term deposits with banks 122.08 305.05
* % of NPA to total advances to that asset class
Others
9) Amount and number of additional/top up loan given on same underlying asset. Nil Nil
- Retained interest in pass through certificates (excluding accrued interest) - - Please provide breakup separately for each asset class i.e. RMBS, Vehicle Loans etc
4) Amount of exposures to securitisation transactions other than MRR 10) Investor complaints -
a) Off-balance sheet exposures a) Directly/Indirectly received Nil Nil
(i) Exposure to own securitisations b) Complaints outstanding Nil Nil
First loss - -
b) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
Others - -
During the current year and the previous year, the Company has not sold any financial assets to
- Excess Interest Spread 678.83 1,083.90
Securitisation/Reconstruction Company for asset reconstruction.
(ii) Exposure to third party securitisations
First loss - - V) Disclosures relating to loans transferred / acquired through assignment / novation and loan
Others - - participation
b) On-balance sheet exposures During the current year and the previous year, the Company has not transferred or acquired any loan
(i) Exposure to own securitisations exposures through assignment / novation and loan participation.
First loss - - During the current year and the previous year, the Company has not transferred or acquired any
stressed loans.

372 Empowering Emerging India INTEGRATED REPORT 2022-23 373

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

VI) Exposures During the year under review, India Ratings & Research Private Limited (IND), which is part of Fitch
a) Exposure to Real Estate Sector (refer note no. 55 (A) (1)) Group, reaffirmed the rating of Company’s Long-term instrument and Subordinated Debt programme to
‘IND AAA/Stable’ and Principal protected market linked debenture: IND PP-MLD AAA/Stable. The Company’s
b) Exposure to Capital Market (refer note no. 55 (A) (2))
Short Term Commercial Paper has been rated at IND A1+ and as assigned IND-AAA/STABLE ratio to the
c) Details of financing of parent company products Company’s Fixed Deposit Programme.
Of the total financing activity undertaken by the Company during the financial year 2022-23, 50%
(31 st March 2022: 47%) of the financing was towards parent company products. During the year under review, CARE Ratings, also reaffirmed the ‘CARE AAA/Stable’ rating to Company’s
Long-term debt instrument and Subordinated Debt programme.
d) Details of Single Borrower Limit (SGL) /Group Borrower Limit (GBL) exceeded by the NBFC
During the current year and the previous year, the Company has not exceeded the prudential exposure During the year under review, Brickwork Ratings India Private Limited (BWR) has, reaffirmed the ‘BWR AAA/
limits for Single Borrower Limit (SGL) /Group Borrower Limit (GBL). Stable’ rating of the Company’s Long-term Subordinated Debt Issue.

e) Unsecured Advances The ‘AAA’ ratings denote the highest degree of safety regarding timely servicing of financial obligations.
Such instruments carry lowest credit risk.
As at 31 st
March 2023, the amount of unsecured advances stood at ₹ 4,638.98 crore (31 st March 2022:
₹3,363.35 crore). There are no advances secured against intangible assets.
VIII) Net Profit of Loss for the period ,prior period items and change in accounting policies
VII) Miscellaneous There are no such material items which require disclosures in the notes to Accounts in terms of the
relevant Accounting Standard.
a) Registration obtained from other financial sector regulators
During the current year and the previous year, the Company has not obtained any registration from other IX) Revenue recognition
financial sector regulators.
Refer note no. 2.6 under Summary of Significant Accounting Policies.
b) Disclosure of Penalties and strictures imposed by RBI and other regulators
X) Indian Accounting Standard 27 (Ind AS 27) - Consolidated and Separate Financial
i) The Reserve Bank of India (“RBI”) vide its press release dated 22 September 2022 had directed Statements (CFS)
the Company to cease carrying out any recovery or repossession activity through outsourcing
All the subsidiaries of the Company have been consolidated as per Ind AS 27. Refer consolidated financial
arrangements. The said prohibition was lifted by RBI effective 4 January 2023 based on the submissions
statements (CFS).
made by the Company and its commitment to strengthen its recovery practices and outsourcing
arrangements, tighten the process of onboarding third party agents and strengthen accountability
XI) Provisions and Contingencies
framework as per its Board approved action plan.
₹ in crores
ii) The RBI had by an order dated 5 April 2023 imposed a monetary penalty of ₹ 6.77 crore on the
As at As at
Company for deficiencies in regulatory compliance with the RBI directions on fair practices relating to Particulars
31st March 2023 31st March 2022
disclosure of annualised rate of interest charged on loans to certain borrowers at the time of sanction
Break up of 'Provisions and Contingencies' shown under the head Expenditure
and failure to give notice of change in terms and conditions of loan to these borrowers. The Company
in Profit and Loss Account
has paid the said penalty amount.
Provisions for depreciation on Investment (0.64) 1.21
iii) BSE Limited had imposed a fine of ₹ 1.4 Lakh + GST under Regulation 60(2) of SEBI (Listing Obligations Provision towards non-performing assets (Stage 3 assets) (680.32) (461.71)
and Disclosure Requirements) Regulations,2015 for inadvertent delay of 1 day in intimation of record Provision made towards Income tax 486.28 348.16
date to the stock exchange in the month of March 2022 for payment of interest on non-convertible Other Provision and Contingencies 0.26 (1.01)
debentures. The Company has paid the said penalty amount. Provision for diminution in the fair value of restructured advances - -
Provision for Standard Assets (Stage 1 and Stage 2 assets) (533.81) 316.94
c) Related Party Transactions
(refer note 51) Draw Down from Reserves

d) Rating assigned by credit rating agencies and migration of ratings during the year
Year ended March 31, 2023: Nil
Credit Rating -
During the year under review, CRISIL Ratings Limited (CRISIL), has upgraded the rating of the Company’s Year ended March 31, 2022: Nil
Long-term Debt Instruments, Subordinated Debt programme and Bank Facilities as ‘CRISIL AAA/ Stable’
and the Company’s Fixed Deposit Programme as ‘CRISIL AAA/Stable’, respectively. The ‘AAA/Stable’ rating
indicates a highest degree of safety with regard to timely servicing of financial obligations. The rating on
the Company’s Short-term Bank Loans and Commercial Paper has been reaffirmed at ‘CRISIL A1+’ which
indicates very strong degree of safety regarding timely payment of financial obligations.

374 Empowering Emerging India INTEGRATED REPORT 2022-23 375

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

XII) Concentration of Deposits, Advances, Exposures and NPAs f) Movement of NPAs*

a) Concentration of Deposits (for deposit taking NBFCs)
₹ in crores
₹ in crores As at As at
Particulars
31st March 2023 31st March 2022
As at As at
Particulars
31st March 2023 31st March 2022 i) Net NPAs to Net Advances (%) 1.87% 3.36%
Total Deposits of twenty largest depositors 389.59 1,164.66 ii) Movement of NPAs (Gross)
Percentage of Deposits of twenty largest depositors to Total Deposits of the NBFC 7.1% 13.8% (a) Opening balance 4,976.30 5,785.94
(b) Additions during the year 2,071.15 2,706.62
b) Concentration of Advances (c) Reductions during the year (3,330.35) (3,516.26)
(d) Closing balance 3,717.10 4,976.30
₹ in crores
iii) Movement of Net NPAs
As at As at
Particulars (a) Opening balance 2,085.95 2,433.88
31st March 2023 31st March 2022
Total Advances to twenty largest borrowers 1,587.51 873.40 (b) Additions during the year 811.31 1,147.16

Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 1.9% 1.3% (c) Reductions during the year (1,390.19) (1,495.09)
(d) Closing balance 1,507.08 2,085.95
c) Concentration of Exposures iv) Movement of provisions for NPAs
(a) Opening balance 2,890.35 3,352.06
₹ in crores (b) Provisions made during the year 1,259.84 1,559.46
As at As at (c) Write-off / write-back of excess provisions (1,940.16) (2,021.17)
Particulars
31st March 2023 31st March 2022
(d) Closing balance 2,210.03 2,890.35
Total Exposure to twenty largest borrowers / customers 1,587.51 873.40
Percentage of Exposures to twenty largest borrowers / customers to Total Exposure of 1.9% 1.3% * NPA represent stage 3 assets
the NBFC on borrowers / customers
XIII) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
d) Concentration of NPAs
₹ in crores
₹ in crores Other Partner Total Assets
As at As at Name of the Joint Venture/ Subsidiary in the JV / Country As at As at
Particulars Subsidiary 31st March 2023 31st March 2022
31st March 2023 31st March 2022
Total Exposure to top four NPA accounts 34.90 52.60 Mahindra Finance USA, LLC De Lage Landen USA 4,608.95 4,076.51
Financial
Services
e) Sector-wise NPAs*
Mahindra Ideal Finance Limited Ideal Finance Sri Lanka 127.67 127.95
As at As at
Limited,
Particulars Sri Lanka
31st March 2023 31st March 2022
Percentage of Percentage of XIV) Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting
NPAs to Total NPAs to Total norms)
Advances in that Advances in that
sector sector Name of the SPV sponsored -
i) Agriculture & allied activities 5.3% 9.9% Domestic Overseas
ii) Auto loans 4.7% 7.5% N/A N/A
iii) MSME 1.1% 2.1%
iv) Corporate borrowers 1.6% 4.2%
v) Unsecured personal loans 1.6% 3.9%
vi) Other personal loans - -
vii) Services - -
* NPA represent stage 3 assets

376 Empowering Emerging India INTEGRATED REPORT 2022-23 377

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 54

-
2,550.71

2,177.52
7,449.65 66,870.55

5,315.68 45,210.21
9,988.62

8,440.27
897.39 79,454.73

223.30 60,444.64
5,524.60

8,426.19
₹ in crores

Total

₹ in crores

Total
Disclosures as required under Master Direction - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve
- Bank) Directions, 2016, as amended

-
-

-
-

-
3,104.49

3,382.84
Over
5 years

Over
5 years
(A) Public disclosure on liquidity risk :
i) Funding Concentration based on significant counterparty (both deposits and borrowings)
As at 31st March 2023
-
-

-
210.52
8,939.53

4,892.90
1,749.79

2,578.41
7,494.47 12,532.13 34,642.52 11,914.42

6,739.79
434.56

532.78
Over
3 years &
up to
5 years

Over
3 years &
up to
5 years
Number of
Sr. Amount % of Total % of Total
Type of instrument Significant
no. (₹ in crores) deposits Liabilities
Counterparties
1 Deposits Nil Nil Nil Nil
2 Borrowings 17 48,569.35 879.1% 61.38%
-

-
2,241.71

718.23
5,133.65 11,851.74 25,360.28

7,422.12 20,083.87
2,349.75

1,006.60
5,748.74 10,103.87 26,602.71
3,255.96

3,128.86
Over
1 year &
up to
3 years

Over
1 year &
up to
3 years

As at 31st March 2022

Number of
-
-

-
566.91
1,097.15

394.87
815.09

2,061.71
Over
6 months
& up to
1 year

Over
6 months
& up to
1 year

Sr. Amount % of Total % of Total

XV) Asset Liability Management Maturity pattern of certain items of Assets and Liabilities

Type of instrument Significant

no. (₹ in crores) deposits Liabilities
Counterparties
1 Deposits Nil Nil Nil Nil
2 Borrowings 21 34,251.07 406.5% 57.41%
-
-

-
681.86
3,094.66
637.13

112.73
576.05

1,504.95
Over
3 months
& up to
6 months

Over
3 months
& up to
6 months

ii) Top 20 large deposits (amount in ₹ in crores and % of total deposits)

As at 31st March 2023
-
-

-
309.00
3,529.14

2,392.83
332.00

43.34
3,031.59

2,650.45
198.78

443.20
Over
2 months
up to
3 months

Over
2 months
up to
3 months

Amount % of Total
Description
(₹ in crores) deposits
Total for Top 20 large deposits 389.59 7.1%

As at 31st March 2022

-

-
-

-
2,192.55

1,032.14
230.42

54.37
3,036.57

2,738.61
111.78

383.69
Over
1 month
up to
2 months

Over
1 month
up to
2 months

Amount % of Total
Description
(₹ in crores) deposits
Total for Top 20 large deposits 1,164.66 13.82%
-

-
-

-
1,467.94

976.01
173.48

21.16
4,277.12

3,502.25
15 days to
31 days

85.01

15 days to
31 days

226.38

iii) Top 10 borrowings (amount in ₹ in crores and % of total borrowings)

As at 31st March 2023
-

-
-

-
-
-
55.10
314.41
767.79

1,031.26
8 to
14 days

26.92

8 to
14 days

86.96

Amount % of Total
Description
(₹ in crores) borrowings
Total for Top 10 borrowings 41,451.18 55.31%

As at 31st March 2022

-

-
-

-
-
-
890.97

845.95
860.73

1,103.66
1 to
7 days

20.45

1 to
7 days

57.66

Amount % of Total
Description
(₹ in crores) borrowings
Total for Top 10 borrowings 25,577.93 45.83%
Foreign Currency liabilities

Foreign Currency liabilities

As at March 31 2023

As at March 31 2022
Foreign Currency Assets

Foreign Currency Assets

Investments

Investments
Borrowings

Borrowings
Particulars

Particulars
Advances

Advances
Deposits

Deposits

378 Empowering Emerging India INTEGRATED REPORT 2022-23 379

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

iv) Funding Concentration based on significant instrument/product vi) Institutional set-up for liquidity risk management
The Liquidity Risk Management framework of the Company is governed by its Liquidity Risk Management
As at 31st March 2023 As at 31st March 2022 Policy and Procedures approved by the Board. The Asset Liability Committee of the Board (ALCO) and
Sr.
Name of the instrument/product Amount % of Total Amount % of Total Asset Liability Management Committee (ALMCO) oversee the implementation of liquidity risk management
no.
(₹ in crores) liabilities (₹ in crores) liabilities
strategy of the Company and ensure adherence to the risk tolerance/limits set by the Board.
1 Non-convertible debentures (Secured) 20,459.27 25.86% 17,406.37 29.18%
2 Term loans from banks (including FCNR loans) 30,707.15 38.81% 15,390.19 25.80% The Company maintains a robust funding profile with no undue concentration of funding sources. In order
3 External Commercial Borrowings 2,550.71 3.22% 2,177.52 3.65% to ensure a diversified borrowing mix, concentration of borrowing through various sources is monitored.
4 Associated liabilities in respect of securitisation 6,718.60 8.49% 8,089.20 13.56% The Company maintains a positive cumulative mismatch in all buckets. As on March 31, 2023, the Company
transactions maintained a liquidity buffer of approximately ₹10,450 crore.
5 Public deposits 5,524.60 6.98% 8,426.19 14.12%
Definition of terms as used in the table above:
6 Subordinated redeemable non-convertible 3,442.13 4.35% 3,129.85 5.25%
debentures a) Significant counterparty:
7 Commercial Papers (Unsecured) 3,936.00 4.97% - -
8 Inter-corporate deposits (ICDs) 937.62 1.18% - -
A “Significant counterparty” is defined as a single counterparty or group of connected or affiliated
counterparties accounting in aggregate for more than 1% of the NBFC’s total liabilities.
74,276.08 93.87% 54,619.32 91.55%
Funding Concentration pertaining to insignificant 669.78 0.85% 1,194.60 2.00% b) Significant instrument/product:
instruments/products
Total borrowings under all instruments/ 74,945.86 94.72% 55,813.92 93.55% A “Significant instrument/product” is defined as a single instrument/product of group of similar
products
instruments/products which in aggregate amount to more than 1% of the NBFC’s total liabilities.

v) Stock Ratios c) Total liabilities:

As at 31st March 2023
Total liabilities include all external liabilities (other than equity).
Sr. Amount % of total % of total % of total
Name of the instrument/product
no. (₹ in crores) public funds liabilities assets d) Public funds:
a) Commercial papers (CPs) 3,936.00 5.25% 4.97% 4.09%
b) Non-convertible debentures (NCDs) with original Nil Nil Nil Nil “Public funds” includes funds raised either directly or indirectly through public deposits, inter-corporate
maturity of less than 1 year deposits, bank finance and all funds received from outside sources such as funds raised by issue of
c) Other short-term liabilities 3,292.49 4.39% 4.16% 3.42% Commercial Papers, Debentures etc. but excludes funds raised by issue of instruments compulsorily
convertible into equity shares within a period not exceeding 5 years from the date of issue. It includes
As at 31st March 2022 total borrowings outstanding under all types of instruments/products.

Sr. Amount % of total % of total % of total e) Other short-term liabilities:

Name of the instrument/product
no. (₹ in crores) public funds liabilities assets
a) Commercial papers (CPs) 496.56 0.89% 0.83% 0.66% All short-term borrowings other than CPs and NCDs with original maturity less than 12 months.
b) Non-convertible debentures (NCDs) with original Nil Nil Nil Nil
maturity of less than 1 year
c) Other short-term liabilities 1,924.20 3.45% 3.23% 2.56%

380 Empowering Emerging India INTEGRATED REPORT 2022-23 381

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 55 2) Exposure to Capital Market

Disclosure requirements under Scale Based Regulation (SBR) - A Revised
₹ in crores
Regulatory Framework for NBFCs as per circular RBI/2022-23/26 DOR.ACC. REC.
As at As at
No.20/21.04.018/2022-23 dated 19 April 2022 Category
31st March 2023 31st March 2022
The Reserve Bank of India, vide its circular RBI/2021-22/112 DOR.CRE.REC.No.60/03.10.001/2021-22 dated (i) Direct investment in equity shares, convertible bonds, convertible debentures - -
22 October 2021 outlined the Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs and and units of equity-oriented mutual funds the corpus of which is not exclusively
thereafter issued another circular RBI/2022-23/26 DOR.ACC.REC.No.20/21.04.018/2022-23 dated 19 April invested in corporate debt
2022, requiring NBFCs to make certain additional disclosures in their financial statements in accordance with (ii) Advances against shares / bonds / debentures or other securities or on clean basis - -
the SBR framework. to individuals for investment in shares (including IPOs / ESOPs), convertible bonds,
convertible debentures, and units of equity-oriented mutual funds
Section - I (iii) Advances for any other purposes where shares or convertible bonds or convertible - -
A) Exposure debentures or units of equity oriented mutual funds are taken as primary security

1) Exposure to Real Estate Sector (iv) Advances for any other purposes to the extent secured by the collateral security of - -
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares / convertible bonds /
₹ in crores convertible debentures / units of equity oriented mutual funds does not fully cover
As at As at the advances
Category
31st March 2023 31st March 2022
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf - -
i) Direct exposure of stockbrokers and market makers
a) Residential Mortgages - (vi) Loans sanctioned to corporates against the security of shares / bonds / debentures - -
Lending fully secured by mortgages on residential property that is or will be - - or other securities or on clean basis for meeting promoter's contribution to the
occupied by the borrower or that is rented. Exposure would also include non- equity of new companies in anticipation of raising resources
fund based (NFB) limits (vii) Bridge loans to companies against expected equity flows / issues - -
b) Commercial Real Estate - (viii)Underwriting commitments taken up by the NBFCs in respect of primary issue of - -
Lending secured by mortgages on commercial real estates (office buildings, retail - - shares or convertible bonds or convertible debentures or units of equity oriented
space, multi-purpose commercial premises, multi-family residential buildings, mutual funds
multi-tenanted commercial premises, industrial or warehouse space, hotels, land (ix) Financing to stockbrokers for margin trading - -
acquisition, development and construction, etc.). Exposure would also include (x) All exposures to Alternative Investment Funds:
non-fund based (NFB) limits.
i) Category I - -
c) Investments in Mortgage Backed Securities (MBS) and other securitised
exposures- ii) Category II - -
a. Residential - - iii) Category III - -
b. Commercial Real Estate - - Total Exposure to Capital Market - -
ii) Indirect exposure
Fund based and non-fund-based exposures on National Housing Bank and Housing - -
Finance Companies.
Total Exposure to Real Estate Sector - –

382 Empowering Emerging India INTEGRATED REPORT 2022-23 383

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

3) Sectoral exposure 5) Unhedged foreign currency exposure

Details of its unhedged foreign currency exposures:
₹ in crores
As at 31st March 2023 As at 31st March 2022 As at 31st March 2023: Nil
Total Exposure
Percentage of
Total Exposure
Percentage of As at 31 st March 2022: Nil
Sectors (includes on (includes on
Gross NPAs to Gross NPAs to
balance sheet Gross NPAs balance sheet Gross NPAs
total exposure total exposure Policies to manage currency induced risk:
and off-balance and off-balance
in that sector in that sector
sheet exposure) sheet exposure)
Currency Risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
1) Agriculture & allied 14,218.54 795.36 5.6% 12,461.16 1,272.56 10.2% exchange rates. Foreign currency risk arise majorly on account of foreign currency borrowings. The
activities Company’s foreign currency exposures are managed in accordance with its Foreign Exchange Risk
2) Industry Management Policy which has been approved by its Board of Directors. The Company manages its foreign
i) Micro and Small 2,051.24 26.81 1.3% 745.82 17.34 2.3% currency risk by entering into forward contract and cross currency swaps.
ii) Medium 585.07 3.34 0.6% 357.92 11.81 3.3%
iii) Large 1,915.44 19.54 1.0% 1,077.71 15.82 1.5% B) Related Party Disclosure (refer Annexure - 1)
iv) Others - Trade 2,599.15 6.93 0.3% 1,807.42 60.66 3.4% C) Disclosure of complaints
advances to Dealers 1) Summary information on complaints received by the NBFCs from customers and from the Offices
Total of Industry 7,150.90 56.62 0.8% 3,988.87 105.63 2.6% of Ombudsman
3) Services
i) Transport Operators 26,471.29 1,402.71 5.3% 22,128.72 1,833.91 8.3% ₹ in crores
ii) Others - - - - - - Sr As at As at
Particulars
Total of Services 26,471.29 1,402.71 5.3% 22,128.72 1,833.91 8.3% no 31st March 2023 31st March 2022

4) Retail / Personal loans Complaints received by the NBFC from its customers
i) Consumer Durables 170.45 5.08 3.0% 62.64 2.74 4.4% 1 Number of complaints pending at beginning of the year 179 763
ii) Vehicle/Auto Loans 33,553.44 1,390.74 4.1% 25,398.58 1,650.83 6.5% 2 Number of complaints received during the year 16,549 19,050
iii) Personal loans 388.72 3.66 0.9% 286.84 10.50 3.7% 3 Number of complaints disposed during the year 16,570 19,634
iv) Others 970.82 62.93 6.5% 678.74 100.13 14.8% 3.1 Of which, number of complaints rejected by the NBFC - -
Total of Retail / 35,083.43 1,462.41 4.2% 26,426.80 1,764.20 6.7% 4 Number of complaints pending at the end of the year 158 179
Personal loans Maintainable complaints received by the NBFC from Office of Ombudsman
5) Others (if any; to - - - - - - 5* Number of maintainable complaints received by the NBFC from Office of 407 -
specify) Ombudsman
82,924.16 3,717.10 4.5% 65,005.55 4,976.30 7.7% 5.1 
Of 5, number of complaints resolved in favour of the NBFC by Office of 385 -
Ombudsman
i) The disclosures as above shall be based on the sector-wise and industry-wise bank credit (SIBC) return 5.2 O
 f 5, number of complaints resolved through conciliation/mediation/ 16 -
submitted by scheduled commercial banks to the Reserve Bank and published by Reserve Bank as ‘Sectoral advisories issued by Office of Ombudsman
Deployment of Bank Credit’. 6 -
5.3 O
 f 5, number of complaints resolved after passing of Awards by Office of
Ombudsman against the NBFC
ii) In the disclosures as above, if within a sector, exposure to a specific sub-sector/industry is more than
6 Number of Awards unimplemented within the stipulated time (other than those - -
10 per cent of Tier I Capital of a NBFC, the same shall be disclosed separately within that sector. Further, appealed)
within a sector, if exposure to specific sub-sector/industry is less than 10 per cent of Tier I Capital, such
exposures shall be clubbed and disclosed as “Others” within that sector.
Note:
4) Intra-group exposures Maintainable complaints refer to complaints on the grounds specifically mentioned in Integrated Ombudsman Scheme, 2021
(Previously The Ombudsman Scheme for Non-Banking Financial Companies, 2018) and covered within the ambit of the Scheme.
₹ in crores
* It shall only be applicable to NBFCS which are included under The Reserve Bank - Integrated Ombudsman Scheme, 2021
Year ended Year ended
Particulars
31st March 2023 31st March 2022
i) Total amount of intra-group exposures 1,532.87 1,326.48
ii) Total amount of top 20 intra-group exposures 1,532.87 1,326.48
iii) Percentage of intra-group exposures to total exposure of the NBFC on borrowers/ 1.65% 1.81%
customers

384 Empowering Emerging India INTEGRATED REPORT 2022-23 385

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

2) Top five grounds of complaints received by the NBFCs from customers

-
-
₹ in crores

Outstan- Maximum
ding O/s during
the year

-
406.35

-
-

-
-

406.35
₹ in crores
% increase/
Number of decrease in

4. Associate
Number of Number of Of 5, number

-
year end

-
-

-
406.35

-
-

-
-

0.01

406.36
complaints the number
Grounds of complaints, complaints complaints of complaints
pending at the of complaints
(i.e. complaints relating to) received during pending at the pending beyond
beginning of received over
the year end of the year 30 days
the year the previous
year

-
Transac-
tion
value

-
-

-
-
-

-
-

-
-

0.62

0.62
Year ended 31st March 2023
Loan and advances 82 11,176 -14% 88 4
Staff behaviour 49 2,269 12% 46 -
Levy of charges without prior notice/ 6 1,225 -14% 1 1

the year
Outstan- Maximum
ding O/s during

377.21

-
6.27

-
9.52

-
-

-
-

392.99
excessive charges/ foreclosure charges
Fixed deposit related - 49 -93% - -

3. Fellow Subsidiaries
Mandatory listed within three years of identification as NBFC-UL - Not Applicable for the Company.
Difficulty in operation of accounts - 19 -17% - -
Others 42 1,811 -2% 23 -

year end
369.54

-
5.50

-
9.52

-
-

-
-

8.37

392.93
Total 179 16,549 -13% 158 5

Year ended 31st March 2022

(4.26)
(0.69)
Transac-
tion
value

-
-

-
9.77

-
19.00

-
1.68

2.35

78.28

106.13
Loan and advances 366 13,056 82 17
Staff behaviour 236 2,029 49 7
Levy of charges without prior notice/ 38 1,422 6 -
excessive charges/ foreclosure charges

Outstan- Maximum
ding O/s during
the year
101.02

-
200.62

-
877.72

-
-

-
-

79.47 1,136.05 1,179.36

Fixed deposit related - 674 - -
Difficulty in operation of accounts - 23 - -
Others 123 1,846 42 4

2. Subsidiaries
Total 763 19,050 0 179 28

year end
100.64

-
157.48

-
877.72

-
-

-
-

0.21
Related Party Disclosure for the year ended 31st March 2023
Section - II
A) Breach of covenant

(46.15)
Transac-
tion
value
93.00

-
-
-

0.02

-
14.78

-
0.92

16.90
During the current year and previous year there is no instances of breach of covenant of loan availed or
debt securities issued.

B) Divergence in Asset Classification and Provisioning

-
Outstan- Maximum
ding O/s during
the year

-
15.85

-
-
-

-
-

-
-

15.85
Disclosure of details of divergence, if either or both of the following conditions are satisfied:

1. Parent (as per ownership or

a) the additional provisioning requirements assessed by RBI (or National Housing Bank(NHB) in the case
of Housing Finance Companies) exceeds 5 percent of the reported profits before tax and impairment

-
year end

-
4.48

-
-
-

-
-

-
-

24.12

28.60
loss on financial instruments for the reference period, or

control)
b) the additional Gross NPAs identified by RBI/NHB exceeds 5 per cent of the reported Gross NPAs for
the reference period.
Disclosure for NBFCs-UL

(10.91)
-
Transac-
tion
value

-
2.39

-
130.34

0.47
1.47

231.98
59.08

72.97

67.44

555.23
Annexure - 1
As per the RBI inspection report for the reference period 31 st March 2022, the assessment of Divergence
in Asset Classification and Provisioning is below the threshold as defined under a) and b) above and hence
the details as required in tabular form is not presented here.

Sale of fixed/other
Purchase of fixed/

- Dividend paid
Interest received

Transactions
- Lease rental

- Subvention/
Placement of
Sr Item/Related

other assets

Incentive
Interest paid
Investments
Borrowings
Section - III

income
Advances

- Other
Deposits

deposits

10 Others
assets

Total
No. Party
A)

1
2
3

4
5
6

8
9
386 Empowering Emerging India INTEGRATED REPORT 2022-23 387
 ₹ in crores

388
8. Relatives of Key Management
5. Directors 6. Relatives of Directors 7. Key Management Personnel
Personnel
Sr Maximum Maximum Maximum Maximum
Item/Related Party Transac- Outstan- Transac- Outstan- Transac- Outstan- Transac- Outstan-
No. O/s O/s O/s O/s
tion ding tion ding tion ding tion ding
during during during during
value year end value year end value year end value year end
the year the year the year the year
1 Borrowings - - - - - - - - - - - -
2 Deposits (0.12) 0.01 0.01 0.35 0.06 0.06 - - - - - -
Financial
st
3 Placement of deposits - - - - - - - - - - - -
4 Advances - - - - - - - - - - - -

Empowering Emerging India

5 Investments - - - - - - - - - - - -
6 Purchase of fixed/other assets - - - - - - - - - - - -
7 Sale of fixed/other assets - - - - - - - - - - - -
for the year ended 31 March 2023

8 Interest paid 0.05 - - 0.28 - - - - - - - -

9 Interest received - - - - - - - - - - - -
10 Others
- Dividend paid 0.61 - - 0.00 - - - - - - - -
- Lease rental income - - - - - - - - - - - -
- Subvention/Incentive - - - - - - - - - - - -
Statements

- Other Transactions 18.08 - - - - - - - - - - -

Total 18.62 0.01 0.01 0.63 0.06 0.06 - - - - - -

₹ in crores
9. Others Total
Sr Maximum Maximum
Item/Related Party Transaction Outstanding Transaction Outstanding
No. O/s during O/s during
value year end value year end
the year the year
1 Borrowings - - - 88.74 470.18 478.23
2 Deposits - - - (57.52) 167.53 222.81
3 Placement of deposits - - - - - -
4 Advances - - - 2.39 - -
5 Investments - - - - 1,293.58 1,293.58
6 Purchase of fixed/other assets - - - 140.11 - -
7 Sale of fixed/other assets - - - 0.02 - -
8 Interest paid - - - 34.58 - -
Notes forming part of the Standalone

9 Interest received - - - 1.47 - -

10 Others
- Dividend paid - - - 233.51 - -
- Lease rental income - - - 60.76 - -
- Subvention/Incentive - - - 75.32 - -
- Other Transactions - - - 181.33 32.71 -
Total - - - 760.70 1,964.00 1,994.62

Related Party Disclosure for the year ended 31st March 2022

₹ in crores
1. Parent (as per ownership or
2. Subsidiaries 3. Fellow Subsidiaries 4. Associate
control)
Sr Item/Related
No. Party Transac- Outstan- Maximum Transac- Outstan- Maximum Transac- Outstan- Maximum Transac- Outstan- Maximum
tion ding O/s during tion ding O/s during tion ding O/s during tion ding O/s during
value year end the year value year end the year value year end the year value year end the year
1 Borrowings - - - - 4.02 4.28 (339.49) 357.18 694.34 - - -
Financial
Corporate

st

2 Deposits 9.67 15.69 16.18 111.15 199.88 212.15 (10.00) 5.93 16.45 - - -
Overview & IR

3 Placement of - - - - - - - - - - - -
deposits
4 Advances 2.05 - - - - - - - - - - -
Report
Board’s

5 Investments - - - - 877.72 877.72 - 9.52 9.52 - 406.35 406.35

for the year ended 31 March 2023

6 Purchase of fixed/ 114.27 - - - - - 5.51 - - - - -

other assets
7 Sale of fixed/other - - - 0.21 - - - - - - - -
assets
8 Interest paid 3.20 - - 7.66 - - 25.63 - - - - -
Analysis

9 Interest received 3.61 - - - - - - - - - - -

Statements
Management

10 Others
Discussion and

- Dividend paid 51.55 - - 0.27 - - - - - - - -

- Lease rental 20.38 - - - - - 0.21 - - - - -
income
- Reimbursement 35.20 - - - - - 4.65 - - 0.06 - -
Report on
Corporate
Governance

from parties
- Investments - - - 33.97 - - - - - - - -
made
- Subvention/ 16.34 - - - - - 0.30 - - - - -
Report

Incentive
Business

- Other 133.85 6.81 - 62.41 11.79 - 48.97 8.79 - 0.63 0.06 -

Transactions
Responsibility
& Sustainability

Total 390.11 22.50 16.18 215.67 1,093.40 1,094.14 (264.23) 381.42 720.31 0.69 406.40 406.35
Financial
Standalone

Statements

Notes forming part of the Standalone

C

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

389
 ₹ in crores

390
8. Relatives of Key Management
5. Directors 6. Relatives of Directors 7. Key Management Personnel
Personnel
Sr Item/Related
No. Party Transac- Outstan- Maximum Transac- Outstan- Maximum Transac- Outstan- Maximum Transac- Outstan- Maximum
tion ding O/s during tion ding O/s during tion ding O/s during tion ding O/s during
value year end the year value year end the year value year end the year value year end the year
1 Borrowings - - - - - - - - - - - -
2 Deposits 0.11 0.92 0.92 (0.21) 4.39 4.39 - - - - - -
Financial
st
3 Placement of - - - - - - - - - - - -
deposits

Empowering Emerging India

4 Advances - - - - - - - - - - - -
5 Investments - - - - - - - - - - - -
6 Purchase of fixed/ - - - - - - - - - - - -
other assets
for the year ended 31 March 2023

7 Sale of fixed/other - - - - - - - - - - - -
assets
8 Interest paid 0.05 - - 0.31 - - - - - - - -
9 Interest received - - - - - - - - - - - -
10 Others
Statements

- Dividend paid 0.15 - - - - - - - - - - -

- Lease rental - - - - - - - - - - - -
income
- Reimbursement - - - - - - - - - - - -
from parties
- Investments - - - - - - - - - - - -
made
- Subvention/ - - - - - - - - - - - -
Incentive
- Other 13.17 - - - - - - - - - - -
Transactions
Total 13.47 0.92 0.92 0.10 4.39 4.39 - - - - - -
Notes forming part of the Standalone

₹ in crores
9. Others Total
Sr Maximum Maximum
Item/Related Party Transaction Outstanding Transaction Outstanding
No. O/s during O/s during
value year end value year end
the year the year
1 Borrowings - - - (339.49) 361.20 698.62
2 Deposits - - - 110.72 226.81 250.09
Financial

3 Placement of deposits - - - - - -
Corporate

st

4 Advances - - - 2.05 - -
Overview & IR

5 Investments - - - - 1,293.58 1,293.58

6 Purchase of fixed/other assets - - - 119.78 - -
7 Sale of fixed/other assets - - - 0.21 - -
Report
Board’s

8 Interest paid - - - 36.85 - -

for the year ended 31 March 2023

9 Interest received - - - 3.61 - -

10 Others
- Dividend paid - - - 51.97 - -
- Lease rental income - - - 20.59 - -
Analysis

- Reimbursement from parties - - - 39.91 - -

Statements
Management

- Investments made - - - 33.97 - -

Discussion and

- Subvention/Incentive - - - 16.64 - -
- Other Transactions - - - 259.02 27.44 -
Total - - - 355.82 1,909.03 2,242.29
Report on
Corporate
Governance
Report
Business
Responsibility
& Sustainability
Financial
Standalone

Statements

Notes forming part of the Standalone

C

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

391
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 56 Computation of Net cash outflows

Disclosures as required under Guidelines on Liquidity Risk Management Framework
₹ in crores
for NBFCs issued by RBI vide notification no. RBI/2019-20/88 DOR. NBFC (PD) CC.
No.102/03.10.001/2019-20 dated 4 November 2019 Quarter ended
31st March 2023
Quarter ended
31 December 2022
Quarter ended
30 September 2022
Quarter ended
30 June 2022
Net Cash outflows over the Total Total Total Total Total Total Total Total
As per the Guidelines on Liquidity Risk Management Framework for NBFCs issued by RBI vide notification no. 30 days period Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20, all deposit taking NBFCs are required to Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
maintain Liquidity Coverage Ratio (LCR) from 1 December 2020, with the minimum LCR to be 50%, progressively
increasing, till it reaches the required level of 100%, by 1 December 2024. A Stressed Cash Outflows @ 115% of 6,420.51 5,337.59 6,046.13 5,738.31 6,226.10 6,065.10 5,970.63 5,970.63
Outflows

B Stressed Cash Inflows @ 75% of 6,643.08 6,643.08 7,019.40 7,019.40 6,399.36 6,399.36 5,348.48 5,348.48
(B) Liquidity Coverage Ratio (LCR) for the year ended 31st March 2023 Inflows

C Net Stressed Cash Flows (Stressed (222.57) (1,305.49) (973.27) (1,281.09) (173.25) (334.26) 622.15 622.15
₹ in crores
Cash Out Flow - Stressed Cash Inflow)
Quarter ended Quarter ended Quarter ended Quarter ended D 25% of Stressed Cash Outflows 1,605.13 1,334.40 1,511.53 1,434.58 1,556.53 1,516.28 1,492.66 1,492.66
31st March 2023 31 December 2022 30 September 2022 30 June 2022
E Greater Value of C or D 1,605.13 1,334.40 1,511.53 1,434.58 1,556.53 1,516.28 1,492.66 1,492.66
Particulars Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted F Liquidity Coverage Ratio (%) After 311% 335% 377% 357% 326% 301% 391% 351%
Value Value Value Value Value Value Value Value Applying Stress Factor - (1/E)
(average) (average) (average) (average) (average) (average) (average) (average)

High Quality Liquid Assets

Notes:
1 Total High Quality Liquid Assets 4,988.13 4,471.23 5,696.33 5,116.13 5,080.11 4,568.31 5,838.19 5,241.28
(HQLA) (refer note 1 below) 1) The average weighted and unweighted amounts are calculated taking simple average based on monthly observation for the
Cash Outflows respective quarter. The weightage factor applied to compute weighted average value is constant for all the quarters.
2 Deposits (for deposit taking 193.49 193.49 391.76 391.76 480.84 480.84 449.92 449.92 2) Prior to introduction of LCR framework, the Company used to maintain a substantial share of its liquidity in form of fixed
companies) deposits with banks and investment in debt mutual funds. Post the introduction of LCR framework, the Company has
consciously worked towards increasing its investment in High Quality Liquid Assets (HQLA) as per the RBI guidelines in order
3 Unsecured wholesale funding 981.27 981.27 645.06 645.06 234.54 234.54 369.13 369.13
to meet the LCR requirement.
4 Secured wholesale funding 2,359.63 1,417.96 2,254.70 1,987.03 2,981.62 2,841.62 2,802.90 2,802.90
3) Weighted values have been calculated after the application of respective haircuts (for HQLA) and stress factors on inflow
5 Additional requirements, of which and outflow.
i) Outflows related to derivative - - - - - - - - 4) Components of High Quality Liquid Assets (HQLA)
exposures and other collateral
requirements

ii) Outflows related to loss of - - - - - - - - ₹ in crores

funding on debt products
Quarter ended Quarter ended Quarter ended Quarter ended
iii) Credit and liquidity facilities - - - - - - - - 31st March 2023 31 December 2022 30 September 2022 30 June 2022

6 Other contractual funding 1,967.74 1,967.74 1,921.76 1,921.76 1,672.77 1,672.77 1,525.67 1,525.67 Particulars Total Total Total Total Total Total Total Total
obligations Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
7 Other contingent funding 80.92 80.92 44.23 44.23 44.23 44.23 44.23 44.23 (average) (average) (average) (average) (average) (average) (average) (average)
obligations
I Assets to be included as HQLA
8 TOTAL CASH OUTFLOWS 5,583.05 4,641.38 5,257.51 4,989.84 5,414.00 5,274.00 5,191.85 5,191.85 without any haircut:
Cash Inflows - Government securities 4,626.27 4,163.65 5,484.95 4,936.46 5,004.31 4,503.87 5,576.33 5,018.70
9 Secured lending - - - - - - - - II Assets to be considered for HQLA
with a minimum haircut of 15%:
10 Inflows from fully performing 5,059.11 5,059.11 5,882.42 5,882.42 6,201.42 6,201.42 4,714.34 4,714.34
exposures
– Corporate Bonds 361.86 307.58 178.44 151.67 75.81 64.43 261.86 222.58
11 Other cash inflows 3,798.33 3,798.33 3,476.79 3,476.79 2,331.06 2,331.06 2,416.97 2,416.97
– Commercial Papers – – 32.94 28.00 – – – –
12 TOTAL CASH INFLOWS 8,857.44 8,857.44 9,359.21 9,359.21 8,532.48 8,532.48 7,131.31 7,131.31
III Assets to be considered for HQLA
TOTAL ADJUSTED VALUES with a minimum haircut of 50%:

13 TOTAL HQLA 4,988.13 4,471.23 5,696.33 5,116.13 5,080.11 4,568.31 5,838.19 5,241.28 – Commercial Papers – – – – – – – –

14 TOTAL NET CASH OUTFLOWS (3,274.39) (4,216.06) (4,101.70) (4,369.37) (3,118.47) (3,258.48) (1,939.46) (1,939.46) TOTAL 4,988.13 4,471.23 5,696.33 5,116.13 5,080.12 4,568.30 5,838.19 5,241.28
25% of Total Cash Out Flow 1,395.76 1,160.35 1,314.38 1,247.46 1,353.50 1,318.50 1,297.96 1,297.96

15 LIQUIDITY COVERAGE RATIO (%) 357% 385% 433% 410% 375% 346% 450% 404%

392 Empowering Emerging India INTEGRATED REPORT 2022-23 393

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements st
Financial Statements st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 57 Computation of Net cash outflows

Disclosures as required under Guidelines on Liquidity Risk Management Framework
₹ in crores
for NBFCs issued by RBI vide notification no. RBI/2019-20/88 DOR. NBFC (PD) CC.
No.102/03.10.001/2019-20 dated 4 November 2019 Quarter ended
31st March 2022
Quarter ended
31 December 2021
Quarter ended
30 September 2021
Quarter ended
30 June 2021
Net Cash outflows over the Total Total Total Total Total Total Total Total
As per the Guidelines on Liquidity Risk Management Framework for NBFCs issued by RBI vide notification no. 30 days period Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/2019-20, all deposit taking NBFCs are required to Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
maintain Liquidity Coverage Ratio (LCR) from 1 December 2020, with the minimum LCR to be 50%, progressively
increasing, till it reaches the required level of 100%, by 1 December 2024. A Stressed Cash Outflows @ 115% of 4,822.18 4,822.18 3,407.41 3,168.60 2,639.65 2,639.65 3,836.93 3,392.34
Outflows

B Stressed Cash Inflows @ 75% of 4,704.22 4,704.22 5,279.38 5,279.38 4,425.20 4,425.20 4,691.13 4,025.63
(B) Liquidity Coverage Ratio (LCR) for the year ended 31st March 2022 Inflows

C Net Stressed Cash Flows (Stressed 117.96 117.96 (1,871.97) (2,110.78) (1,785.55) (1,785.55) (854.20) (633.29)
₹ in crores
Cash Out Flow - Stressed Cash Inflow)
Quarter ended Quarter ended Quarter ended Quarter ended D 25% of Stressed Cash Outflows 1,205.55 1,205.55 851.85 792.15 659.91 659.91 959.23 848.08
31st March 2022 31 December 2021 30 September 2021 30 June 2021
E Greater Value of C or D 1,205.55 1,205.55 851.85 792.15 659.91 659.91 959.23 848.08
Particulars Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted F Liquidity Coverage Ratio (%) After 484% 435% 491% 473% 725% 651% 458% 465%
Value Value Value Value Value Value Value Value Applying Stress Factor - (1/E)
(average) (average) (average) (average) (average) (average) (average) (average)

High Quality Liquid Assets

Notes:
1 Total High Quality Liquid Assets 5,839.72 5,242.66 4,178.88 3,747.90 4,787.14 4,295.33 4,396.15 3,943.44
(HQLA) (refer note 1 below) 1) The average weighted and unweighted amounts are calculated taking simple average based on monthly observation for the
Cash Outflows respective quarter. The weightage factor applied to compute weighted average value is constant for all the quarters.
2 Deposits (for deposit taking 415.83 415.83 349.67 349.67 345.16 345.16 267.31 267.31 2) Prior to introduction of LCR framework, the Company used to maintain a substantial share of its liquidity in form of fixed
companies) deposits with banks and investment in debt mutual funds. Post the introduction of LCR framework, the Company has
consciously worked towards increasing its investment in High Quality Liquid Assets (HQLA) as per the RBI guidelines in order
3 Unsecured wholesale funding 235.48 235.48 331.23 331.23 30.13 30.13 393.37 393.37
to meet the LCR requirement.
4 Secured wholesale funding 1,849.38 1,849.38 875.49 667.83 698.33 698.33 1,383.34 996.74
3) Weighted values have been calculated after the application of respective haircuts (for HQLA) and stress factors on inflow
5 Additional requirements, of which and outflow.
i) Outflows related to derivative - - - - - - - - 4) Components of High Quality Liquid Assets (HQLA)
exposures and other collateral
requirements

ii) Outflows related to loss of - - - - - - - - ₹ in crores

funding on debt products
Quarter ended Quarter ended Quarter ended Quarter ended
iii) Credit and liquidity facilities - - - - - - - - 31st March 2022 31 December 2021 30 September 2021 30 June 2021

6 Other contractual funding 1,648.28 1,648.28 1,364.08 1,364.08 1,193.70 1,193.70 1,244.28 1,244.28 Particulars Total Total Total Total Total Total Total Total
obligations Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
7 Other contingent funding 44.23 44.23 42.50 42.50 28.03 28.03 48.16 48.16 (average) (average) (average) (average) (average) (average) (average) (average)
obligations
I Assets to be included as HQLA
8 TOTAL CASH OUTFLOWS 4,193.20 4,193.20 2,962.97 2,755.31 2,295.35 2,295.35 3,336.46 2,949.86 without any haircut:
Cash Inflows
– Government securities 5,577.87 5,020.08 3,917.02 3,525.32 4,525.28 4,072.75 4,134.29 3,720.86
9 Secured lending - - - - - - - - ii Assets to be considered for HQLA
10 Inflows from fully performing 4,086.58 4,086.58 4,108.14 4,108.14 3,836.70 3,836.70 3,726.89 3,726.89 with a minimum haircut of 15%:
exposures
– Corporate Bonds 261.86 222.58 261.86 222.58 261.86 222.58 261.86 222.58
11 Other cash inflows 2,185.72 2,185.72 2,931.03 2,931.03 2,063.57 2,063.57 2,527.95 1,640.61
iii Assets to be considered for HQLA
12 TOTAL CASH INFLOWS 6,272.30 6,272.30 7,039.17 7,039.17 5,900.27 5,900.27 6,254.84 5,367.50 with a minimum haircut of 50%:

TOTAL ADJUSTED VALUES – Commercial Papers - - - - - - - -

13 TOTAL HQLA 5,839.72 5,242.66 4,178.88 3,747.90 4,787.14 4,295.33 4,396.15 3,943.44 TOTAL 5,839.73 5,242.66 4,178.88 3,747.90 4,787.14 4,295.33 4,396.15 3,943.44
14 TOTAL NET CASH OUTFLOWS (2,079.10) (2,079.10) (4,076.20) (4,283.86) (3,604.92) (3,604.92) (2,918.38) (2,417.64)

25% of Total Cash Out Flow 1,048.30 1,048.30 740.74 688.83 573.84 573.84 834.11 737.47

15 LIQUIDITY COVERAGE RATIO (%) 557% 500% 564% 544% 834% 749% 527% 535%

394 Empowering Emerging India INTEGRATED REPORT 2022-23 395

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Qualitative information: i) Disclosures pursuant to RBI Notification - RBl/2020-21/16 DOR.No.BP.BC/3/21.04.048/

The Company has implemented the guidelines on Liquidity Risk Management Framework prescribed by the 2020-21 dated 6 August 2020 and RBl/2021-22/31/DOR.STR. REC.11 /21.04.048/
Reserve Bank of India requiring maintenance of Liquidity Coverage Ratio (LCR), which aim to ensure that an 2021-22 dated 5 May 2021
NBFC maintains an adequate level of unencumbered HQLAs that can be converted into cash to meet its
liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario. Format - B: For the year ended 31st March 2023

LCR = Stock of High-Quality Liquid Assets (HQLAs)/Total Net Cash Outflows over the next 30 calendar days HQLAs ₹ in crores

comprise of Cash*, Investment in Central and State Government Securities, and highly-rated Corporate Bonds Exposure to Of (A), aggregate Of (A) amount Of (A) amount Exposure to
accounts debt that written off paid by accounts
and Commercial papers, including those of Public Sector Enterprises, as adjusted after assigning the haircuts as classified as slipped into NPA during the half- the borrowers classified as
prescribed by RBI. Standard during year during the Standard
consequent to the half-year (C) half-year consequent to
implementation of (D) implementation of
* Cash would mean cash on hand and demand deposits with Scheduled Commercial Banks. Type of borrower
resolution plan – (B) resolution plan –
Position Position
as at the end of as at the end of
Total net cash outflows are arrived after taking into consideration total expected cash outflows minus total the this
expected cash inflows for the subsequent 30 calendar days. As prescribed by RBI, total net cash outflows previous half-year half-year *
over the next 30 days = Stressed Outflows - [Min (stressed inflows; 75% of stressed outflows)]. Total expected (A) (E)

cash outflows (stressed outflows) are calculated by multiplying the outstanding balances of various categories Personal Loans 779.18 57.82 35.94 167.95 517.47
or types of liabilities and off-balance sheet commitments by 115% (15% being the rate at which they are
Corporate persons^ 34.80 - - 5.57 29.23
expected to run off further or be drawn down). Total expected cash inflows (stressed inflows) are calculated by
multiplying the outstanding balances of various categories of contractual receivables by 75% (25% being the Of which, MSMEs - - - - -
rate at which they are expected to under-flow) Others -
- Vehicle loans for commercial 1,176.13 89.45 167.67 157.59 761.42
The Liquidity Risk Management framework of the Company is governed by its Liquidity Risk Management Policy purpose
and Procedures approved by the Board. The Asset Liability Committee of the Board (ALCO) and Asset Liability
TOTAL 1,990.11 147.27 203.61 331.11 1,308.12
Management Committee (ALMCO) oversee the implementation of liquidity risk management strategy of the
Company and ensure adherence to the risk tolerance/limits set by the Board. ^ As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
* In respect of OTR 2.0, above includes restructuring implemented till 30 September 2021
The Company maintains a robust funding profile with no undue concentration of funding sources. In order to
ensure a diversified borrowing mix, concentration of borrowing through various sources is monitored. Further, ii) Disclosure on Resolution Framework 2.0 implemented in terms of RBI circular no.
the Company has prudential limits on investments in different instruments to maintain a healthy investment RBI/2021-22/32 DOR.STR.REC.11/21.04.048/2021-22 dated 5 May 2021 (Resolution
profile. Risks relating to foreign currency and interest rate is mitigated by entering in corresponding hedge of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)
transactions. Any potential collateral calls from the same forms a miniscule part of cash outflows. There is no
currency mismatch in the LCR. The above is periodically monitored by ALMCO and reviewed by ALCO.
No. of accounts restructured* Amount (₹ in Crores)**
Note : 57
1391 118.57
Disclosure as required under Guidelines on Resolution Framework for COVID-19-related
* accounts restructured are retail loans used for commercial purpose.
Stress issued by RBI
** represents the closing balance of loan accounts as on 31 st March 2023
During the year, to relieve COVID-19 pandemic related stress, the Company has invoked resolution plans for
Relevant disclosure for the previous year ended 31st March 2022
eligible borrowers based on the parameters laid down in accordance with the resolution policy approved by
the Board of Directors of the Company and in accordance with the guidelines issued by the RBI on Resolution During the year ended 31 st March 2022, to relieve COVID-19 pandemic related stress, the Company has invoked
Framework 2.0 dated 5 May 2021. resolution plans for eligible borrowers based on the parameters laid down in accordance with the resolution
policy approved by the Board of Directors of the Company and in accordance with the guidelines issued by the
RBI on Resolution Framework 2.0 dated 5 May 2021.

396 Empowering Emerging India INTEGRATED REPORT 2022-23 397

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
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Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

i) Disclosure on Resolution Framework 2.0 implemented in terms of RBI circular no. Note : 59
RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated 5 May 2021 (Resolution of
The Reserve Bank of India, under Scale Based Regulations (SBR), has categorised the Company in Upper Layer
Covid-19 related stress of Individuals and Small Businesses).
(NBFC-UL) vide its press release dated 30 September 2022. The Company has put in place a Board approved
policy for adoption of enhanced regulatory framework and implementation plan for adhering to new set of
Format - B: For the year ended 31st March 2022
regulations under SBR framework as per the prescribed timelines.
₹ in crores
Note : 60
Exposure to Of (A), aggregate Of (A) amount Of (A) amount Exposure to
accounts debt that written off paid by accounts On 21 October 2022, the Company entered into a Share Purchase Agreement with Inclusion Resources Private
classified as slipped into NPA during the half- the borrowers classified as
Standard during year during the Standard
Limited (IRPL) to acquire balance 20% equity stake in its subsidiary Mahindra Insurance Brokers Ltd (MIBL) at a
consequent to the half-year (C) half-year consequent to consideration of ₹ 206.39 crore. This proposed transaction is subject to the approval of Insurance Regulatory
Type of borrower
implementation of (D) implementation of and Development Authority of India (IRDAI). Subsequent to the acquisition, MIBL will become a wholly owned
resolution plan – (B) resolution plan –
Position Position subsidiary of the Company.
as at the end of as at the end of
the
previous half-year
this
half-year *
Note : 61
(A) (E)
During the year ended 31 st March 2023, in relation to serious economic crisis evolved over a period of time
Personal Loans 1,439.63 45.43 6.60 90.03 1,297.57 resulting in currency devaluation and worsening business situation in Sri Lanka, the Company had reviewed
Corporate persons* 41.64 - - 2.44 39.20 future cash flow estimates of its Sri Lankan subsidiary, Mahindra Ideal Finance Limited (MIFL). Based on these
projections, the Company had obtained a valuation report from an independent valuer for valuation of its
Of which, MSMEs - - - - -
equity stake in MIFL. As per the valuation report, which is prepared using discounted cash flow method, and
Others based on the management assessment, the recoverable amount of the investment in MIFL is lower than the
- Vehicle loans for commercial 2,366.04 152.79 48.95 162.73 2,001.57 carrying amount of investment and accordingly an impairment loss provision of ₹ 54.51 crore was recognised
purpose as an exceptional item in the Statement of profit and loss for the year ended 31 st March 2023.
TOTAL 3,847.31 198.22 55.55 255.20 3,338.34
Note : 62
^ As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
Disclosure as required under RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.
* In respect of OTR 2.0, above includes restructuring implemented till 30 September 2021 PD.No.109/22.10.106/2019-20 dated 13 March 2020 on Implementation of Indian
Accounting Standards
ii) Disclosure on Resolution Framework 2.0 implemented in terms of RBI circular no.
RBI/2021-22/32 DOR.STR.REC.11/21.04.048/2021-22 dated 5 May 2021 (Resolution of
i) A comparison between provisions required under extant prudential norms on Income Recognition,
Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)
Asset Classification and Provisioning (IRACP) and impairment allowances made under Ind AS 109
Year ended 31st March 2023
No. of accounts restructured* Amount (₹ in Crores)**
₹ in crores
2062 232.47
Loss Difference
* accounts restructured are retail loans used for commercial purpose. Asset Gross Allowances Gross
Provisions
between Ind
classification Carrying (Provisions) Net Carrying Carrying AS
required as
** represents the closing balance of loan accounts as on 31 st March 2022 Asset Classification as per RBI Norms as Amount as as Amount Amount as 109
per
per Ind AS per required per provisions
IRACP norms
Note : 58 109 Ind AS under IRACP and IRACP
Ind AS 109 norms
On 12 November 2021, the Reserve Bank of India (RBI) had issued circular no. RBI/2021-2022/125 DOR.STR. (1) (2) (3) (4) (5) = (3) - (4) (6) (7) = (4) - (6)
REC.68/21.04.048/2021-22, requiring changes to and clarifying certain aspects of Income Recognition, Asset
Performing Assets
Classification and Provisioning norms (IRACP norms) pertaining to Advances. On 15 February 2022, the RBI
Standard
had issued another circular no. RBI/2021-2022/158 DOR.STR.REC.85/21.04.048/2021-22 providing time till
30 September 2022 for implementation of provisions of above mentioned circular. Accordingly, the Company Stage 1 74,124.59 614.10 73,510.49 73,995.70 350.49 263.61
has implemented the updated norms under IRACP w.e.f. 1 October 2022. Stage 2 4,928.18 523.68 4,404.50 3,873.31 139.11 384.57
Subtotal for standard 79,052.77 1,137.78 77,914.99 77,869.01 489.60 648.18
The RBI has also clarified that this circular does not, in any way, interfere with the extant guidelines on
implementation of Ind-AS by NBFCs. Accordingly, the financial results for the year ended 31 st March 2023 Non-Performing Assets (NPA)

and previous year ended 31st March 2022 have been prepared in accordance with Indian Accounting Standards Substandard Stage 3 1,569.72 583.87 985.85 2,687.04 293.35 290.52
(‘Ind AS’) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended, as the Company Doubtful - up to 1 year Stage 3 1,135.92 624.43 511.49 1,144.18 590.46 33.97
continues to follow the extant model provisioning norms, as per the Board approved Expected Credit Loss
1 to 3 years Stage 3 979.74 970.00 9.74 981.13 793.34 176.66
(ECL) policy.
More than 3 years Stage 3 6.70 6.70 - 6.86 6.56 0.14
Subtotal for doubtful 2,122.36 1,601.13 521.23 2,132.17 1,390.36 210.77
Loss Stage 3 25.03 25.03 - 81.65 81.65 (56.62)

398 Empowering Emerging India INTEGRATED REPORT 2022-23 399

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

i) A comparison between provisions required These transactions are carried out after complying
₹ in crores
under extant prudential norms on Income with RBI guidelines on securitisation of standard
Loss Difference
Asset Gross Allowances Gross between Ind
Recognition, Asset Classification and assets. The consideration received through such
classification Carrying (Provisions) Net Carrying Carrying
Provisions
AS Provisioning (IRACP) and impairment allowances securitisation transactions is utilised for funding
required as
Asset Classification as per RBI Norms as Amount as as Amount Amount as
per
109
made under Ind AS 109 (Continued) regular vehicle loan disbursements to customers
per Ind AS per required per provisions
IRACP norms who service their loans through fixed installments
109 Ind AS under IRACP and IRACP
Ind AS 109 norms 
Since the total impairment allowances under over a specified period of loan tenor. Besides
(1) (2) (3) (4) (5) = (3) - (4) (6) (7) = (4) - (6) Ind AS 109 is higher than the total provisioning using securitisation as alternate financing tool,
required under IRACP (including standard asset it is also being used as a effective Balance sheet
Subtotal for NPA 3,717.10 2,210.03 1,507.07 4,900.86 1,765.36 444.67
provisioning) as at 31st March 2023 and 31st March management through better liquidity and risk
Other items such as guarantees, loan Stage 1 - 1.41 (1.41) - - 1.41 management by transfer of assets from risk averse
commitments, etc. which are 2022, no amount is required to be transferred to
‘Impairment Reserve’ for both the financial years. The to risk takers.
in the scope of Ind AS 109 but not covered Stage 2 - - - - - -
under current Income gross carrying amount of asset as per Ind AS 109
Recognition, Asset Classification and Stage 3 - - - - - - and Loss allowances (Provisions) thereon includes When the assets in the form of loan receivables
Provisioning (IRACP) norms
interest accrual on net carrying value of stage - 3 are sold / transferred to an SPV/Bank through
Subtotal - 1.41 (1.41) - - 1.41 assets as permitted under Ind AS 109. While, the securitisation transaction, then on a consolidated
Total Stage 1 74,124.59 615.51 73,509.08 73,995.70 350.49 265.02 provisions required as per IRACP norms does not portfolio level, such sale/transfer does not change
Stage 2 4,928.18 523.68 4,404.50 3,873.31 139.11 384.57 include any such interest as interest accrual on the Company’s business objective of holding
Stage 3 3,717.10 2,210.03 1,507.07 4,900.86 1,765.36 444.67 NPAs is not permitted under IRACP norms. financial assets to collect contractual cash flows.
Total 82,769.87 3,349.22 79,420.65 82,769.87 2,254.96 1,094.26
The balance in the ‘Impairment Reserve’ (as and The Company remains exposed to credit risk, being
when created) shall not be reckoned for regulatory the expected losses that will be incurred on the
Year ended 31st March 2022 securitised loan portfolio to the extent of the credit
capital. Further, no withdrawals shall be permitted
from this reserve without prior permission from the enhancement provided. Any increase in losses as
₹ in crores compared to the expected loss shall require the
Department of Supervision, RBI.
Loss Difference Company to present its credit enhancement / cash
Asset Gross Allowances Gross between Ind
classification Carrying (Provisions) Net Carrying Carrying
Provisions
AS As at 31st March 2023 and 31st March 2022,
ii)  collateral to help compensate the investors. This is
Asset Classification as per RBI Norms as Amount as as Amount Amount as
required as
109 there were no loan accounts that are past due as per the requirement of the Reserve Bank of India.
per
per Ind AS per required per
IRACP norms
provisions
beyond 90 days but not treated as impaired, i.e. all Thus, the Company as per Ind AS 109 has retained
109 Ind AS under IRACP and IRACP
90+ DPD ageing loan accounts have been classified substantially all the risks and rewards of ownership
Ind AS 109 norms
as Stage-3 and no dispensation is considered in of the financial asset.
(1) (2) (3) (4) (5) = (3) - (4) (6) (7) = (4) - (6)
Performing Assets
stage-3 classification.
The Company derecognises a financial asset when
Standard
iii) Policy for sales / transfers out of amortised the contractual rights to the cash flows from the
Stage 1 50,727.01 442.37 50,284.64 50,727.01 202.91 239.46 cost business model portfolios Sale/transfer financial asset expire, or it transfers the rights to
Stage 2 9,257.46 1,174.33 8,083.13 9,257.46 385.10 789.23 of portfolios out of amortised cost business receive the contractual cash flows in a transaction
Subtotal for standard 59,984.47 1,616.70 58,367.77 59,984.47 588.01 1,028.69 model: in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
Non-Performing Assets (NPA) As a short-term financing arrangement, the Company
or in which the Company neither transfers nor
Substandard Stage 3 2,221.13 943.67 1,277.45 2,221.13 240.33 703.35 has been transferring or selling certain pools of
retains substantially all of the risks and rewards
Stage 3 1,870.78 1,062.28 808.50 1,870.78 1,158.52 (96.24) fixed rate loan receivables backed by underlying
Doubtful - up to 1 year
of ownership and does not retain control of the
assets in the form of tractors, vehicles, equipments
1 to 3 years Stage 3 801.54 801.54 - 801.54 644.77 156.77 financial asset.
etc. by entering in to securitisation transactions with
More than 3 years Stage 3 4.37 4.37 - 4.37 4.34 0.03
the Special Purpose Vehicle Trusts (“SPV Trust”)
Subtotal for doubtful 2,676.69 1,868.19 808.50 2,676.69 1,807.63 60.56 If the Company enters into transactions whereby it
sponsored by Commercial banks for consideration
transfers assets recognised on its balance sheet,
Loss Stage 3 78.49 78.49 - 78.49 78.49 - received in cash at the inception of the transaction.
but retains either all or substantially all of the
Subtotal for NPA 4,976.30 2,890.35 2,085.95 4,976.30 2,126.44 763.91 As a part of annual budgetary planning and with the
risks and rewards of the transferred assets, the
Other items such as guarantees, loan Stage 1 - 1.78 (1.78) - - 1.78 objective of better liquidity and risk management,
transferred assets are not derecognised.
commitments, etc. which are the Company, at the beginning of the year, obtains
in the scope of Ind AS 109 but not covered Stage 2 - - - - - - approval of Asset Liability Committee and Risk
under current Income Accordingly, these financial assets are not de-
Management Committee of the Board of Directors
Recognition, Asset Classification and Stage 3 - - - - - - recognised by the Company from the financial
for undertaking securitisation transactions of
Provisioning (IRACP) norms statements prepared under Ind AS. Since the
certain value of standard assets comprising the
Subtotal - 1.78 (1.78) - - 1.78 contractual terms of these financial assets give rise
collateral based loan receivables at appropriate
Total Stage 1 50,727.01 444.15 50,282.86 50,727.01 202.91 241.24 to cash flows, that are solely payments of principal
times during the year.
Stage 2 9,257.46 1,174.33 8,083.13 9,257.46 385.10 789.23 and interest, on specified dates, these assets meet
the SPPI criterion and are thus continued to be
Stage 3 4,976.30 2,890.35 2,085.95 4,976.30 2,126.44 763.91
recognised in the books at amortised cost.
Total 64,960.77 4,508.83 60,451.94 64,960.77 2,714.45 1,794.38

400 Empowering Emerging India INTEGRATED REPORT 2022-23 401

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Standalone Notes forming part of the Standalone
Financial Statements
st
Financial Statements
st
for the year ended 31 March 2023 for the year ended 31 March 2023

Note : 63
Sr. no. Particulars Details
Disclosures pertaining to Fund raising by issuance of Debt Securities by Large Corporates as
vii) Shortfall, if any, in the mandatory borrowing through NIL
per SEBI notification no. SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018
debt securities for FY 2022-23 {after adjusting for
any shortfall in borrowing for FY 2020-21 which
As per the definition given in above referred notification, the Company is a Large Corporate and hence is
was carried forward to FY 2022-23}
required to disclose the following information about its borrowings.
(f)= (b)-[(c)-(e)]
i) Initial Disclosure as per Annexure - ‘A’ filed within 30 days from the beginning of the financial year (5) Details of penalty to be paid, if any, in respect to previous
for the FY: 2023-24 block (₹ in crores):
i) 3-year Block period (Specify financial years) FY 2020-21
Sr. no. Particulars Details FY 2021-22
(1) Name of the company: Mahindra & Mahindra Financial Services Limited FY 2022-23
(2) CIN: L65921MH1991PLC059642 ii) Amount of fine to be paid for the block, if applicable N.A.
(3) Outstanding borrowing of the Company as on 31 st March ₹58,147.46 Crore Fine = 0.2% of {(d)-(e)}
2023 #
# Notes:
(4) Highest Credit Rating During the previous FY along Long Term/Subordinated Debt:
with name of the Credit Rating Agency (i) Figures pertain to long-term borrowing basis original maturity of more than one year (excludes External Commercial
• CRISIL AAA/ Stable by CRISIL Ratings Ltd Borrowings, Inter-corporate borrowings between a parent & subsidiaries and securitisation portfolio outstanding); and

• IND AAA / Stable by India Ratings & Research (ii) Figures are taken on the basis of cash flows/principal maturity value, excluding accrued interest, if any.
Private Limited
• CARE AAA / Stable by CARE Ratings Limited
Note : 64
• BWR AAA / Stable by Brickwork Ratings India
Private Limited Events after the reporting date
Short Term: There have been no other events after the reporting date that require disclosure in these financial statements.
• CRISIL A1+ by CRISIL Ratings Ltd
Note : 65
• 
IND A1+ by India Ratings & Research
Private Limited Previous year figures have been regrouped /reclassified wherever necessary to conform to
current year presentation.
(5) Name of Stock Exchange in which the fine shall be paid, BSE Limited
in case of shortfall in the required borrowing under Signatures to Notes 1 to 65
the framework

ii) Annual disclosure as per Annexure - B2 for the year ended 31st March 2023

Sr. no. Particulars Details

(1) Name of the company Mahindra & Mahindra Financial Services Limited
(2) CIN L65921MH1991PLC059642
(3) Report filed for FY: 2022-23
In terms of our report attached.
(4) Details of the Current block (₹ in crores)
For Deloitte Haskins & Sells For and on behalf of the Board of Directors
i) 3-year block period FY 2022-23 Chartered Accountants Mahindra & Mahindra Financial Services Limited
FY 2023-24 Firm’s Registration No: 117365W

FY 2024-25 Rupen K. Bhatt Dr. Anish Shah Ramesh Iyer

Partner Chairman Vice-Chairman & Managing Director
ii) Incremental borrowing done in FY 2022-23 (a) # 26,559.82
Membership No: 046930 [DIN: 02719429] [DIN: 00220759]
iii) 
Mandatory borrowing to be done through debt 6,639.95
For Mukund M. Chitale & Co. Vivek Karve Brijbala Batwal
securities in FY 2022-23 (b) = (25% of a)
Chartered Accountants Chief Financial Officer Company Secretary
iv) 
Actual borrowing done through debt securities in 7,518.19 Firm’s Registration No: 106655W Membership No: F5220
FY 2022-23 (c)
M. M. Chitale
v) 
Shortfall in the borrowing through debt securities, NIL Partner
if any, for FY 2021-22 carried forward to 2022-23 (d) Membership No: 14054
vi) Quantum of (d), which has been met from (c) (e) N.A Place: Mumbai Place: Mumbai
Date: 28th April 2023 Date: 28th April 2023

402 Empowering Emerging India INTEGRATED REPORT 2022-23 403

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Independent Auditors’ Report

Sr. No. Key Audit Matter Auditors’ Response
• 
Qualitative and quantitative factors used in Testing the design and operating effectiveness of the following:
staging the loan assets measured at amortised
cost; • Completeness and accuracy of the Exposure at Default
(“EAD”) and the classification thereof into stages consistent
• 
Basis used for estimating Probabilities of with the definitions applied in accordance with the policy
Default (“PD”), Loss Given Default (“LGD”) and approved by the respective company’s Board of Directors
To the Members of comprehensive income, their consolidated cash flows Exposure at Default (“EAD”) at product level including the appropriateness of the qualitative factors to
Mahindra & Mahindra Financial Services Limited and their consolidated changes in equity for the year with past trends; be applied;

Report on the Audit of the Consolidated ended on that date. • 

Judgements used in projecting economic • Completeness, accuracy and appropriateness of information
Financial Statements scenarios and probability weights applied to used in the estimation of the PD and LGD for the different
Basis for Opinion reflect future economic conditions; and stages depending on the nature of the portfolio; and
Opinion We conducted our audit of the Consolidated Financial • 
Adjustments to model driven ECL results to • Accuracy of the computation of the ECL estimate including
We have audited the accompanying consolidated Statements in accordance with the Standards on address emerging trends. reasonableness of the methodology used to determine
Auditing specified under Section 143(10) of the Act macro-economic overlays and adjustments to the output
financial statements of Mahindra & Mahindra (Refer Note 2.6, 2.11(h), 7 and 51.2 to the of the ECL Model.
Financial Services Limited (the “Parent” / the “Holding (“SA”s). Our responsibilities under those Standards are Consolidated Financial Statements).
Company”) and its subsidiaries, (the Parent / Holding further described in the Auditors’ Responsibility for Test of details on a sample in respect of the following:
Company and its subsidiaries together referred to as the Audit of the Consolidated Financial Statements
• 
Accuracy and completeness of the input data such as
the “Group”) and its share of the net profit after tax and section of our report. We are independent of the period of default and other related information used in
total comprehensive income of its associate and joint Group in accordance with the Code of Ethics issued estimating the PD;
ventures, which comprise the Consolidated Balance by the Institute of Chartered Accountants of India
• The mathematical accuracy of the ECL computation by
Sheet as at 31 st March 2023, and the Consolidated (“ICAI”) together with the ethical requirements that
using the same input data as used by the Group.
Statement of Profit and Loss (including Other are relevant to our audit of the Consolidated Financial
Statements under the provisions of the Act and the • Completeness and accuracy of the staging of the loans and
Comprehensive Income), the Consolidated Statement
Rules made thereunder, and we have fulfilled our the underlying data based on which the ECL estimates have
of Cash Flows and the Consolidated Statement of been computed.
Changes in Equity for the year then ended, and a other ethical responsibilities in accordance with these
summary of significant accounting policies and other requirements and the ICAI’s Code of Ethics. We believe • Evaluating the adequacy of the adjustments made to the
that the audit evidence obtained by us and the audit output as per the ECL Model to ensure that the adjustment
explanatory information.
evidence obtained by the other auditors in terms of was in conformity with the policy approved by the Audit
Committee of the Companies included in the Group.
In our opinion and to the best of our information and their reports referred to in the sub-paragraphs (a) (b)
and (c) of the Other Matters section below, is sufficient 2. Information Technology and General Controls: With the assistance of IT specialists, the auditors of a subsidiary
according to the explanations given to us, and based The Group is dependent on its Information company and we obtained an understanding of the Group’s
on the consideration of reports of the other auditors and appropriate to provide a basis for our audit opinion
Technology (“IT”) systems due to the significant IT applications, databases and operating systems relevant to
on separate financial statements of the subsidiaries, on the Consolidated Financial Statements. number of transactions that are processed daily financial reporting and the control environment. For these
associates and joint ventures, referred to in the Other across such multiple and discrete IT systems. Also, elements of the IT infrastructure the areas of our focus
Matters section below, the aforesaid Consolidated Key Audit Matters IT application controls are critical to ensure that included access security (including controls over privileged
Financial Statements give the information required by Key audit matters are those matters that, in our changes to applications and underlying data are access), program change controls, database management and
made in an appropriate manner and under controlled network operations. In particular:
the Companies Act, 2013 (the “Act”) in the manner so professional judgment, were of most significance in
environments. Appropriate controls contribute to
required and give a true and fair view in conformity our audit of the Consolidated Financial Statements mitigating the risk of potential fraud or errors as • 
Auditors of one subsidiary and we tested the design,
with the Indian Accounting Standards prescribed of the current year. These matters were addressed in a result of changes to applications and data. On implementation, and operating effectiveness of the Group’s
under Section 133 of the Act read with the Companies the context of our audit of the Consolidated Financial account of the pervasive use of its IT systems, the general IT controls over the IT systems relevant to financial
reporting. This included evaluation of Group’s controls over
(Indian Accounting Standards) Rules, 2015, as Statements as a whole, and in forming our opinion testing of the general computer controls of the IT
systems used in financial reporting was considered segregation of duties and access rights being provisioned /
amended (”Ind AS”) and other accounting principles thereon, and we do not provide a separate opinion modified based on duly approved requests, access for exit
generally accepted in India, of the consolidated state on these matters. We have determined the matters to be a Key Audit Matter.
cases being revoked in a timely manner and access of all
of affairs of the Group as at 31 st March 2023, and described below to be the key audit matters to be users being recertified during the period of audit.
their consolidated profit, their consolidated total communicated in our report.
• Auditors of a subsidiary and we also tested key automated
business cycle controls and logic for the reports generated
Sr. No. Key Audit Matter Auditors’ Response through the IT infrastructure that were relevant for
financial reporting or were used in the exercise of internal
1. Allowances for Expected Credit Losses (“ECL”): Auditors of one subsidiary and we have examined the policies
financial controls with reference to financial statements.
approved by the respective Board of Directors of the Company
As at 31st March 2023, the carrying value of loan Our tests included testing of the compensating controls
that articulate the objectives of managing each portfolio and
assets measured at amortised cost, aggregated or alternate procedures to assess whether there were
their business models. Auditors of the subsidiary and we have
₹86,456.07 crore (net of allowance of expected any unaddressed IT risks that would materially impact the
also verified the methodology adopted for computation of ECL
credit loss ₹3,649.29 crore) constituting Financial Statements.
(“ECL Model”) that addresses policies approved by the respective
approximately 82% of the Group’s total assets. Board of Directors, procedures and controls for assessing and
Significant judgement is used in classifying these measuring credit risk on all lending exposures measured at
loan assets and applying appropriate measurement amortised cost. Additionally, Auditors of the subsidiary and we
principles. ECL on such loan assets measured have confirmed that adjustments to the output of the ECL Information Other than the Financial and Management Discussion and Analysis (“MD&A”)
at amortised cost is a critical estimate involving Model are consistent with the documented rationale and basis Statements and Auditor’s Report Thereon (collectively referred to as “other information”),
greater level of management judgement. As part of for such adjustments and that the amount of adjustment has
our risk assessment, we determined that the ECL The Parent’s / Holding Company’s Board of Directors but does not include the Consolidated Financial
been approved by the respective Audit Committee of the Board Statements and our auditor’s report thereon.
on such loan assets has a high degree of estimation of Directors. Our audit procedures related to the allowance for is responsible for the other information. The other
uncertainty, with a potential range of reasonable ECL included the following, among others: information comprises the information included in
outcomes for the Standalone Financial Statements. the Board’s Report (including annexures thereto), The other information is expected to be made available
The elements of estimating ECL which involved to us after the date of our auditor’s report.
Business Responsibility and sustainability report
increased level of audit focus are the following:

404 Empowering Emerging India INTEGRATED REPORT 2022-23 405

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Our opinion on the Consolidated Financial Statements to cease operations, or has no realistic alternative but Statements or, if such disclosures are inadequate, 2023, total revenues of ₹1,395.96 crore and
does not cover the other information and we do not to do so. to modify our opinion. Our conclusions are based net cash outflows amounting to ₹107.78 crore
express any form of assurance conclusion thereon. on the audit evidence obtained up to the date of for the year ended on that date, as considered
The respective Boards of Directors of the companies our auditor’s report. However, future events or in the Consolidated Financial Statements. These
In connection with our audit of the consolidated included in the Group are also responsible for conditions may cause the Group and its associates financial statements have been audited by other
financial statements, our responsibility is to read the overseeing the financial reporting process of the Group. and joint ventures to cease to continue as a going auditors whose reports have been furnished to
other information identified above when it becomes concern. us by the Management and our opinion on the
available, compare with the financial statements of Auditors’ Responsibility for the Audit of the • Evaluate the overall presentation, structure and Consolidated Financial Statements, in so far as it
the subsidiaries, associates and joint ventures audited Consolidated Financial Statements content of the Consolidated Financial Statements, relates to the amounts and disclosures included
by the other auditors, to the extent it relates to Our objectives are to obtain reasonable assurance incl u ding t he di s cl o su re s , a n d w he t he r t he in respect of these subsidiaries, and our report
these entities and, in doing so, place reliance on the about whether the Consolidated Financial Statements Consolidated Financial Statements represent the in terms of Section 143(3) of the Act, in so far
work of the other auditors and consider whether the as a whole are free from material misstatement, underlying transactions and events in a manner as it relates to the aforesaid subsidiaries is based
other information is materially inconsistent with the whether due to fraud or error, and to issue an auditor’s that achieves fair presentation. solely on the reports of the other auditors.
consolidated financial statements or our knowledge report that includes our opinion. Reasonable assurance • Obt ain suf f icient appropriate audit evidence
obtained during the course of our audit or otherwise is a high level of assurance, but is not a guarantee (b) Further the financial statements of a subsidiary
regarding the financial information of the business
appears to be materially misstated. that an audit conducted in accordance with SAs will included in the Consolidated Financial Statements,
activities within the Group to express an opinion
always detect a material misstatement when it exists. whose financial statements reflect total assets
on the Consolidated Financial Statements. We
When we read the other information included in the Misstatements can arise from fraud or error and are of ₹682.25 crore as at 31 st March 2023, total
are responsible for the direction, super vision
above reports, if we conclude that there is material considered material if, individually or in the aggregate, revenues of ₹426.51 crore and net cash inflows
and performance of the audit of the f inancial
misstatement therein, we are required to communicate they could reasonably be expected to influence the amounting to ₹7.18 crore for the year ended 31 st
statements of business activities included in the
the matter to those charged with governance and economic decisions of users taken on the basis of March 2023 as considered in the Consolidated
Consolidated Financial Statements of which we are
determine the actions under the applicable laws these Consolidated Financial Statements. Financial Statements. These financial statements
the independent auditors. For the business activities
and regulations. have been audited by Mukund M. Chitale & Co.,
included in the Consolidated Financial Statements,
As part of an audit in accordance with SAs, we exercise one of the joint auditors of the Group whose
which have been audited by the other auditors, such
Management’s Responsibility for the professional judgment and maintain professional reports have been furnished to us by the
other auditors remain responsible for the direction,
Consolidated Financial Statements skepticism throughout the audit. We also: Management and our opinion on the Consolidated
supervision and performance of the audits carried
The Parent’s / Holding Company’s Board of Directors Financial Statement, in so far as it relates to the
out by them. We remain solely responsible for our
is responsible for the matters stated in Section • Identif y and a ssess the risk s of material amounts and disclosures included in respect of
audit opinion.
134(5) of the Act with respect to the preparation mis s t atement of the Cons ol idated F ina ncial this subsidiary, is based solely on the report of
of these Consolidated Financial Statements that Statements, whether due to fraud or error, design the other auditor and the procedures performed
We communicate with those charged with governance
give a true and fair view of the consolidated financial and perform audit procedures responsive to those by us as stated under Auditor’s Responsibilities
of the Parent / Holding Company and such other
position, consolidated financial performance including risks, and obtain audit evidence that is sufficient section above.
entities included in the Consolidated Financial
other comprehensive income, consolidated cash flows and appropriate to provide a basis for our opinion. Statements of which we are the independent auditors
and consolidated changes in equity of the Group in The risk of not detecting a material misstatement (c) The Statement also includes the Group’s share
regarding, among other matters, the planned scope
accordance with the Ind AS and other accounting resulting from fraud is higher than for one resulting of loss after tax of ₹ 15.67 crore and total
and timing of the audit and significant audit findings,
principles generally accepted in India. The respective from error, as fraud may involve collusion, forgery, comprehensive loss of ₹ 15.63 crore for the
including any significant deficiencies in internal control
Boards of Directors of the companies included in the intentional omissions, misrepresentations, or the year ended 31 st March 2023, as considered in
that we identify during our audit.
Group are responsible for maintenance of adequate override of internal control. the Statement, in respect of 2 joint ventures.
accounting records in accordance with the provisions These financial statements have been audited by
• Obtain an understanding of internal f inancial We also provide those charged with governance with
of the Act for safeguarding the assets of the Group other auditors whose report has been furnished
control relevant to the audit in order to design a statement that we have complied with relevant
and for preventing and detecting frauds and other to us by the Management and our opinion on the
audit procedures that are appropriate in the ethical requirements regarding independence, and
irregularities; selection and application of appropriate Statement, in so far as it relates to the amounts
circumstances. Under Section 143(3)(i) of the to communicate with them all relationships and
accounting policies; making judgments and estimates and disclosures included in respect of these joint
Act, we are also responsible for expressing our other matters that may reasonably be thought to
that are reasonable and prudent; and design, ventures, is based solely on the report of the
opinion on whether the Parent / Holding Company bear on our independence, and where applicable,
implementation and maintenance of adequate internal other auditors and the procedures performed
has adequate internal financial controls system related safeguards.
financial controls, that were operating effectively by us as stated under Auditor’s Responsibilities
in respect of Consolidated Financial Statements
for ensuring the accuracy and completeness of the section above.
in place and the operating effectiveness of such From the matters communicated with those charged
accounting records, relevant to the preparation and controls. with governance, we determine those matters
presentation of the respective Financial Statements (d) The Statement also includes the Group’s share
• Evalu ate the appropriatene ss of accounting that were of most significance in the audit of the
that give a true and fair view and are free from material of profit after tax of ₹ 58.99 crore and Total
policies used and the reasonableness of accounting Consolidated Financial Statements of the current
misstatement, whether due to fraud or error, which comprehensive income of ₹ 58.99 crore for the
estimates and related disclosures made by the period and are therefore the key audit matters. We
have been used for the purpose of preparation of the year ended 31 st March 2023, in respect of an
management. describe these matters in our auditor’s report unless
Consolidated Financial Statements by the Directors of associate, based on their financial statements
law or regulation precludes public disclosure about the
the Parent / Holding Company, as aforesaid. • Conclude on the appropriateness of management’s which have not been audited by their auditors.
matter or when, in extremely rare circumstances, we
use of the going concern basis of accounting and, According to the information and explanations
determine that a matter should not be communicated
In preparing the Consolidated Financial Statements, based on the audit evidence obtained, whether a given to us by the Management, these financial
in our report because the adverse consequences of
the respective Boards of Directors of the companies material uncertainty exists related to events or statements are not material to the Group.
doing so would reasonably be expected to outweigh
included in the Group are responsible for assessing the conditions that may cast significant doubt on the
the public interest benefits of such communication.
ability of the respective entities to continue as a going ability of the Group and its associates and joint Our opinion on the Consolidated Financial
concern, disclosing, as applicable, matters related to ventures to continue as a going concern. If we Statements above and our report on “Other
Other Matters
going concern and using the going concern basis of conclude that a material uncertainty exists, we are Legal and Regulatory Requirements” below, is
required to draw attention in our auditor’s report to (a) We did not audit the financial statements of 5 not modified in respect of the above matters with
accounting unless the respective Boards of Directors
the related disclosures in the Consolidated Financial subsidiaries, whose financial statements reflect respect to our reliance on the work done and the
either intends to liquidate their respective entities or
total assets of ₹8,991.60 crore as at 31 st March

406 Empowering Emerging India INTEGRATED REPORT 2022-23 407

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

reports of the other auditors and the financial g) 

With respect to the other matters to be any manner whatsoever by or on under (a) and (b) above, contain any
information certified by the Management. included in the Auditor’s Report in accordance behalf of the Company or any of material misstatement.
with the requirements of Section 197(16) of such subsidiaries and joint ventures
Report on Other Legal and Regulatory the Act, as amended, in our opinion and to the (“Ultimate Beneficiaries”) or provide v) The final dividend proposed with respect
Requirements best of our information and according to the any guarantee, security or the like on to the previous year, declared and paid
1. As required by Section 143(3) of the Act, based on explanations given to us, the remuneration behalf of the Ultimate Beneficiaries. by the Parent Company during the year
our audit and on the consideration of the reports paid by the Parent / Holding Company to its is in accordance with Section 123 of the
of the other auditors on the separate financial directors during the year is in accordance (b) The respective Managements of Act, as applicable.
statements of the subsidiaries and joint ventures with the provisions of Section 197 of the Act. the Company and its subsidiaries
referred to in the Other Matters section above we and joint ventures which are As stated in note 23(ii) to the financial
report, to the extent applicable that: h) 
With respect to the other matters to be companies incorporated in India, statements, the Board of Directors of
included in the Auditor’s Report in accordance whose Financial Statements have the Parent Company have proposed final
a) 
We have sought and obtained all the with Rule 11 of the Companies (Audit and been audited under the Act, have dividend for the year which is subject
information and explanations which to the Auditors) Rules, 2014, as amended in our represented to us and to the other to the approval of the members at
best of our knowledge and belief were opinion and to the best of our information auditors of such subsidiaries and the ensuing Annual General Meeting.
necessary for the purposes of our audit of the and according to the explanations given to us: joint ventures respectively that, to The amount of proposed dividend is in
aforesaid consolidated financial statements. the best of their knowledge and accordance with Section 123 of the Act,
i) The Consolidated Financial Statements belief, other than as disclosed in the as applicable.
b) 
In our opinion, proper books of account as disclose the impact of pending litigations notes to accounts, no funds (which
required by law relating to preparation of the on the consolidated financial position of are material either individually or in vi) 
Proviso of Rule 3(1) of the Companies
aforesaid Consolidated Financial Statements the Group. the aggregate) have been received (Accounts) Rules, 2014 for maintaining
have been kept so far as it appears from our by the Company or any of such books of accounts using accounting
examination of those books, returns and the ii) 
Provision has been made in the subsidiaries and joint ventures from software which has a feature of recording
reports of the other auditors. Consolidated Financial Statements, any person(s) or entity(ies), including audit trail (edit log) facility is applicable
as required under the applicable law foreign entities (“Funding Parties”), with effect from 1 st April 2023, to the
c) The Consolidated Balance Sheet, the or accounting standards, for material with the understanding, whether Company and its subsidiaries, joint
Consolidated Statement of Profit and Loss foreseeable losses, if any, on long-term recorded in writing or otherwise, venture and associates, which are
including Other Comprehensive Income, the contracts including derivative contracts. that the Company or any of such companies incorporated in India, and
Consolidated Statement of Cash Flows and subsidiaries and joint ventures accordingly, reporting under Rule 11(g)
the Consolidated Statement of Changes iii) There has been no delay in transferring shall, directly or indirectly, lend or of Companies (Audit and Auditors) Rules,
in Equity dealt with by this Report are in amounts, required to be transferred, to invest in other persons or entities 2014 is not applicable for the Financial
agreement with the relevant books of account the Investor Education and Protection identified in any manner whatsoever year ended 31 st March 2023.
maintained for the purpose of preparation of Fund by the Parent / Holding Company by or on behalf of the Funding Party
the Consolidated Financial Statements. and its subsidiary companies and (“Ultimate Beneficiaries”) or provide 2. With respect to the matters specified in
joint ventures. any guarantee, security or the like on paragraphs 3(xxi) and 4 of the Companies
d) 
In our opinion, the aforesaid Consolidated behalf of the Ultimate Beneficiaries. (Auditor’s Report) Order, 2020 (the “Order”)
Financial Statements comply with the Ind AS iv) (a) The respective Managements of the issued by the Central Government in terms of
specified under Section 133 of the Act. Company and its subsidiaries and (c) Based on the audit procedures that Section 143(11) of the Act, to be included in the
joint ventures which are companies has been considered reasonable and Auditor’s report, according to the information and
e) On the basis of the written representations incorporated in India, whose financial appropriate in the circumstances explanations given to us, and based on the CARO
received from the directors of the Parent statements have been audited performed by us and those reports issued by the auditors of the subsidiaries
/ Holding Company as on 31st March 2023 under the Act, have represented performed by the auditors of the and joint ventures incorporated in India included
taken on record by the Board of Directors to us and to the other auditors of subsidiaries and joint ventures which in the Consolidated Financial Statements of the
of the Company and the reports of the such subsidiaries and joint ventures, are companies incorporated in India Company, to which reporting under CARO is
statutory auditors of its subsidiary companies respectively, that, to the best of whose financial statements have applicable, provided to us by the Management of
and joint ventures incorporated in India, none their knowledge and belief, other been audited under the Act, nothing the Company and based on the identification of
of the directors of the Group companies is than as disclosed in the notes to has come to our or other auditor’s matters of qualifications or adverse remarks in
disqualified as on 31 st March 2023 from the accounts, no funds (which are notice that has caused us or the their CARO reports by the respective component
being appointed as a director in terms of material either individually or in the other auditors to believe that the auditors and provided to us, we report that the
Section 164 (2) of the Act. aggregate) have been advanced representations under sub-clause auditors of such companies have not reported
or loaned or invested (either (i) and (ii) of Rule 11(e), as provided any qualifications or adverse remarks in their
f) With respect to the adequacy of the Internal from borrowed funds or share CARO report.
Financial Controls with reference to Financial premium or any other sources or
Statements and the operating effectiveness kind of funds) by the Company
or any of such subsidiaries and For Mukund M. Chitale & Co. For Deloitte Haskins & Sells
of such controls, refer to our separate Chartered Accountants Chartered Accountants
Report in “Annexure A” which is based on joint ventures to or in any other
person(s) or entity(ies), including (Firm’s Registration No. 106655W) (Firm’s Registration No. 117365W)
the auditors’ reports of the Parent / Holding
company, subsidiary companies and joint foreign entities (“Intermediaries”), M. M. Chitale Rupen K. Bhatt
ventures incorporated in India. Our report with the understanding, whether Partner Partner
expresses an unmodified opinion on the recorded in writing or otherwise, (Membership No. 14054) (Membership No. 046930)
adequacy and operating effectiveness of that the Intermediary shall, directly (UDIN: 23014054BGSXGR1320) (UDIN: 23046930BGXRJQ2974)
internal financial controls with reference to or indirectly lend or invest in other Place: Mumbai Place: Mumbai
Financial Statements of those companies. persons or entities identified in Date: 28th April 2023 Date: 28th April 2023

408 Empowering Emerging India INTEGRATED REPORT 2022-23 409

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

ANNEXURE “A” Inherent Limitations of Internal Financial

Controls with reference to Consolidated
31 st March 2023, based on the criteria for Internal
Financial Controls with reference to Consolidated
TO THE INDEPENDENT AUDITORS’ REPORT Financial Statements Financial Statements established by the respective
Because of the inherent limitations of internal financial companies considering the essential components of
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of internal control stated in the Guidance Note.
controls with reference to consolidated financial
our report of even date)
statements, including the possibility of collusion or
improper management override of controls, material Other Matters
Report on the Internal Financial Controls with Our audit involves performing procedures to misstatements due to error or fraud may occur and Our aforesaid report under Section 143(3)(i) of the
reference to Consolidated Financial Statements obtain audit evidence about the adequacy of the not be detected. Also, projections of any evaluation Act on the adequacy and operating effectiveness
under Clause (i) of Sub-section 3 of Section 143 internal financial controls system with reference to of the internal financial controls with reference to of the internal financial controls with reference to
of the Companies Act, 2013 (the “Act”) consolidated financial statements and their operating consolidated financial statements to future periods consolidated financial statements in so far as it relates
In conjunction with our audit of the Consolidated effectiveness. Our audit of internal financial controls are subject to the risk that the internal financial control to a subsidiary companies and joint ventures, which are
Financial Statements of the Company as of and for with reference to consolidated financial statements over financial reporting may become inadequate company incorporated in India, is based solely on the
the year ended 31 st March 2023, we have audited the included obtaining an understanding of internal because of changes in conditions, or that the degree corresponding report of the auditors of this company
internal financial controls with reference to financial financial controls with reference to consolidated of compliance with the policies or procedures incorporated in India.
statements of Mahindra & Mahindra Financial Services financial statements, assessing the risk that a material may deteriorate.
Limited (hereinafter referred to as the “Parent”) and weakness exists, and testing and evaluating the Further with respect to a subsidiary company included
its subsidiary companies and joint ventures. design and operating effectiveness of internal control Opinion in the Consolidated Financial Statements, which is a
based on the assessed risk. The procedures selected company incorporated in India, have been audited by
In our opinion to the best of our information and
Management’s Responsibility for Internal depend on the auditor’s judgement, including the Mukund M. Chitale & Co., one of the joint auditors of
according to the explanations given to us and based
Financial Controls assessment of the risks of material misstatement of the Group and our opinion on the internal financial
on the consideration of the reports of the other
the consolidated financial statements, whether due to controls with reference to financial statements, in so
The respective Boards of Directors of the Parent and auditors referred to in the Other Matters paragraph
fraud or error. far as it relates to the internal financial controls with
its subsidiary companies and joint ventures, which are below, the Parent and its subsidiary companies and
companies incorporated in India, are responsible for joint ventures, which are companies incorporated reference to Financial Statements in respect of this
We believe that the audit evidence we have obtained subsidiary, is based solely on the corresponding report
establishing and maintaining internal financial controls in India, have, in all material respects, an adequate
and the audit evidence obtained by the other auditors of the auditors of this company incorporated in India.
based on the internal control with reference to internal financial controls system with reference to
of the subsidiary companies and joint ventures, which
Consolidated Financial Statements criteria established consolidated financial statements and such internal
are companies incorporated in India, in terms of their Our opinion is not modified in respect of the
by the respective Companies considering the essential financial controls with reference to consolidated
reports referred to in the Other Matters paragraph above matters.
components of internal control stated in the Guidance financial statements were operating effectively as at
below, is sufficient and appropriate to provide a basis
Note on Audit of Internal Financial Controls Over
for our audit opinion on the internal financial controls
Financial Reporting issued by the Institute of Chartered
system with reference to Consolidated Financial
Accountants of India (“ICAI”). These responsibilities
Statements of the Parent and its subsidiary companies
include the design, implementation and maintenance
and joint ventures, which are companies incorporated
of adequate internal financial controls that were
in India.
operating effectively for ensuring the orderly and For Mukund M. Chitale & Co. For Deloitte Haskins & Sells
efficient conduct of its business, including adherence Chartered Accountants Chartered Accountants
Meaning of Internal Financial Controls
to the respective company’s policies, the safeguarding (Firm’s Registration No. 106655W) (Firm’s Registration No. 117365W)
with reference to Consolidated Financial
of its assets, the prevention and detection of frauds
Statement M. M. Chitale Rupen K. Bhatt
and errors, the accuracy and completeness of the
A company's internal financial control with reference Partner Partner
accounting records, and the timely preparation of
to Consolidated financial statements is a process (Membership No. 14054) (Membership No. 046930)
reliable financial information, as required under the
designed to provide reasonable assurance regarding (UDIN: 23014054BGSXGR1320) (UDIN: 23046930BGXRJQ2974)
Companies Act, 2013.
the reliability of financial reporting and the preparation Place: Mumbai Place: Mumbai
of consolidated financial statements for external Date: 28th April 2023 Date: 28th April 2023
Auditor’s Responsibility
purposes in accordance with generally accepted
Our responsibility is to express an opinion on the
accounting principles. A company's Internal Financial
internal financial controls with reference to financial
Controls with reference to Consolidated Financial
statements of the Parent and its subsidiary companies
Statements includes those policies and procedures
and joint ventures, which are companies incorporated
that (1) pertain to the maintenance of records that,
in India, based on our audit. We conducted our audit
in reasonable detail, accurately and fairly reflect
in accordance with the Guidance Note on Audit of
the transactions and dispositions of the assets of
Internal Financial Controls Over Financial Reporting
the company; (2) provide reasonable assurance that
(the “Guidance Note”) issued by the Institute of
transactions are recorded as necessary to permit
Chartered Accountants of India and the Standards
preparation of Financial Statements in accordance
on Auditing, prescribed under Section 143(10) of the
with generally accepted accounting principles, and
Companies Act, 2013, to the extent applicable to an
that receipts and expenditures of the company are
audit of internal financial controls. Those Standards
being made only in accordance with authorisations of
and the Guidance Note require that we comply with
management and directors of the company; and (3)
ethical requirements and plan and perform the
provide reasonable assurance regarding prevention or
audit to obtain reasonable assurance about whether
timely detection of unauthorised acquisition, use, or
adequate internal financial controls with reference to
disposition of the company's assets that could have a
Consolidated Financial Statements was established
material effect on the Financial Statements.
and maintained and if such controls operated
effectively in all material respects.

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Management Report on Standalone  onsolidated
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Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Consolidated
st
Balance Sheet Consolidated st
Statement of Profit and Loss
as at 31 March 2023 for the year ended 31 March 2023

₹ in crores ₹ in crores
As at As at Year ended Year ended
Particulars Note Particulars Note
31st March 2023 31st March 2022 31st March 2023 31st March 2022
ASSETS Revenue from operations
Financial Assets i) Interest income 24 12,029.51 10,858.08
a) Cash and cash equivalents 3 586.53 765.32 ii) Dividend income 0.01 0.02
b) Bank balance other than (a) above 4 3,480.38 4,062.29 iii) Rental income 72.68 26.31
c) Derivative financial instruments 5 - 26.63 iv) Fees, charges and commission income 25 180.58 109.88
v) Net gain on fair value changes 26 25.37 51.34
d) Receivables vi) Sale of services 27 391.38 271.94
i) Trade receivables 6 98.35 64.83 I Total Revenue from operations 12,699.53 11,317.57
ii) Other receivables - - II Other income 28 132.87 82.94
e) Loans 7 86,456.07 67,659.69 III Total income (I+II) 12,832.40 11,400.51
f) Investments Expenses
i) Investments accounted using Equity Method 8 (i) 952.54 855.40 i) Finance costs 29 5,094.30 4,417.37
ii) Fees and commission expense 285.26 156.11
ii) Other investments 8 (ii) 9,110.59 7,798.73 iii) Impairment on financial instruments 30 1,182.59 2,690.38
g) Other financial assets 9 1,663.92 270.93 iv) Employee benefits expenses 31 2,115.33 1,613.12
1,02,348.38 81,503.82 v) Depreciation, amortisation and impairment 32 225.96 151.99
Non-financial Assets vi) Others expenses 33 1,112.46 887.71
a) Current tax assets (Net) 568.50 486.25 IV Total expenses 10,015.90 9,916.68
b) Deferred tax Assets (Net) 10 (i) 745.80 951.27 V Profit before exceptional items, share of profit of associate and joint 2,816.50 1,483.83
c) Property, plant and equipment 11 855.10 461.07 venture and tax (III-IV)
d) Intangible assets under development 2.64 2.10 VI Exceptional items 34 (56.06) 20.57
VII Share of Profit of Associate and Joint Venture 43.32 45.02
e) Goodwill - 43.40 VIII Profit before tax (V +VI + VII ) 2,803.76 1,549.42
f) Other intangible assets 12 15.50 10.81 IX Tax expense : 10 (ii)
g) Other non-financial assets 13 548.85 349.93 i) Current tax 498.15 411.38
2,736.39 2,304.83 ii) Deferred tax 234.41 (12.30)
Total Assets 1,05,084.77 83,808.65 732.56 399.08
LIABILITIES AND EQUITY X Profit for the year (VIII-IX) 2,071.20 1,150.34
Other Comprehensive Income (OCI)
LIABILITIES (A) (i) Items that will not be reclassified to profit or loss
Financial Liabilities -Remeasurement gain / (loss) on defined benefit plans (17.94) (4.13)
a) Derivative financial instruments 14 180.70 182.22 -Net gain / (loss) on equity instruments through OCI - 26.01
b) Payables 15 - Share of other comprehensive income / (loss) of equity accounted 0.04 (0.07)
I) Trade Payables investees
i) total outstanding dues of micro enterprises and small enterprises 0.04 0.28 (ii) Income tax impact thereon 10 (iii) 4.51 (5.50)
ii) total outstanding dues of creditors other than micro enterprises and small 1,246.00 1,112.92 Subtotal (A) (13.39) 16.31
enterprises (B) (i) Items that will be reclassified to profit or loss
- Exchange differences in translating the financial statements of foreign (2.44) (27.39)
II) Other Payables
operations
i) total outstanding dues of micro enterprises and small enterprises 2.62 3.53 - Net gain / (loss) on debt instruments through OCI (90.76) (0.16)
ii) total outstanding dues of creditors other than micro enterprises and small 37.35 47.10 - Effective portion of gains and loss on designated portion of hedging (6.34) -
enterprises instruments in a cash flow hedge
c) Debt Securities 16 27,912.79 21,597.15 - Share of other comprehensive income / (loss) of equity accounted investees 53.79 16.57
d) Borrowings (Other than Debt Securities) 17 44,154.40 28,652.09 (ii) Income tax impact thereon 10 (iii) 24.44 0.04
e) Deposits 18 5,458.74 8,286.26 Subtotal (B) (21.32) (10.94)
f) Subordinated Liabilities 19 3,902.63 3,590.13 Other Comprehensive Income (A + B) (34.71) 5.37
g) Other financial liabilities 20 2,965.53 2,874.83 XII Total Comprehensive Income for the year (X + XI) 2,036.49 1,155.71
Profit for the year attributable to:
85,860.80 66,346.51 Owners of the Company 2,072.40 1,136.87
Non-Financial Liabilities Non-controlling interests (1.20) 13.47
a) Current tax liabilities (Net) 74.15 27.60 2,071.20 1,150.34
b) Provisions 21 309.34 275.96 Other Comprehensive Income for the year attributable to:
c) Other non-financial liabilities 22 139.04 120.81 Owners of the Company (33.63) 18.23
522.53 424.37 Non-controlling interests (1.08) (12.86)
(34.71) 5.37
EQUITY 23 Total Comprehensive Income for the year attributable to:
a) Equity Share Capital 246.72 246.60 Owners of the Company 2,038.77 1,155.10
b) Other Equity 18,313.37 16,649.71 Non-controlling interests (2.28) 0.61
Equity attributable to owners of the Company 18,560.09 16,896.31 2,036.49 1,155.71
Non-controlling interests 141.35 141.46 XIII Earnings per equity share (Face value ₹ 2/- per equity share) 35
18,701.44 17,037.77 Basic (Rupees) 16.81 9.23
Diluted (Rupees) 16.79 9.21
Total Liabilities and Equity 1,05,084.77 83,808.65
The accompanying notes form an integral part of the consolidated financial statements. 1 to 57
The accompanying notes form an integral part of the consolidated financial statements. 1 to 57
In terms of our report attached.
In terms of our report attached. For and on behalf of the Board of Directors
For and on behalf of the Board of Directors For Deloitte Haskins & Sells Mahindra & Mahindra Financial Services Limited
For Deloitte Haskins & Sells Mahindra & Mahindra Financial Services Limited Chartered Accountants
Chartered Accountants Firm's Registration No: 117365W Dr. Anish Shah Ramesh Iyer
Firm's Registration No: 117365W Dr. Anish Shah Ramesh Iyer Chairman Vice-Chairman & Managing Director
Chairman Vice-Chairman & Managing Director Rupen K. Bhatt [DIN: 02719429] [DIN: 00220759]
Rupen K. Bhatt [DIN: 02719429] [DIN: 00220759] Partner
Partner Membership No: 046930 Vivek Karve Brijbala Batwal
Membership No: 046930 Vivek Karve Brijbala Batwal Chief Financial Officer Company Secretary
Chief Financial Officer Company Secretary For Mukund M. Chitale & Co. Membership No: F5220
For Mukund M. Chitale & Co. Membership No: F5220 Chartered Accountants
Chartered Accountants Firm's Registration No: 106655W
Firm's Registration No: 106655W
M. M. Chitale
M. M. Chitale Partner
Partner Membership No: 14054
Membership No: 14054 Place: Mumbai Place: Mumbai
Place: Mumbai Place: Mumbai Date: 28th April 2023 Date: 28th April 2023
Date: 28th April 2023 Date: 28th April 2023

412 Empowering Emerging India INTEGRATED REPORT 2022-23 413

 A. Equity Share Capital

414
₹ in crores
Particulars Amount

st
Issued, Subscribed and fully paid up:
Balance as at 1st April 2021 246.40
Changes due to prior period errors -
Restated balance as at 1st April 2021 246.40 Financial
as at 31 March 2023
Changes during the year:
Add: Allotment of shares by ESOS Trust to employees on exercise of options (refer note 37) 0.20

Empowering Emerging India

Balance as at 31st March 2022 246.60
Balance as at 1st April 2022 246.60
Changes due to prior period errors -
Restated balance as at 1st April 2022 246.60
Changes during the year:
Add : Allotment of shares by ESOS Trust to employees on exercise of options (refer note 37) 0.12
Balance as at 31st March 2023 246.72
Statements

B. Other Equity
₹ in crores
Reserves and Surplus Item of Other Comprehensive Income
Retained Debt Equity Non-
Employee Effective Foreign Total Other
Capital earnings instruments instruments controlling Total
Statutory Securities General stock portion of Currency Equity
redemption or profit through OCI through OCI Interests
reserve premium reserve options cash flow Translation
reserve & loss (Refer note (Refer note
outstanding hedges Reserve
account 36) 36)
Balance as at 1st April 2021 2,202.00 50.00 7,137.14 813.17 50.20 5,285.06 (57.82) 2.00 - 48.23 15,529.97 99.15 15,629.12
Changes in accounting policy / prior - -
period errors
Restated balance as at 1st April 2021 - -
Profit for the year 1,136.87 - - - - 1,136.87 13.47 1,150.34
Other Comprehensive Income (3.20) (0.12) 19.47 - 2.08 18.23 (12.86) 5.37
Total Comprehensive Income - - - - - 1,133.67 (0.12) 19.47 - 2.08 1,155.10 0.61 1,155.71
Dividend paid on equity shares (including (98.57) (98.57) (0.62) (99.19)
tax thereon)
Transfers to Securities premium on 17.85 (17.85) - -
exercise of employee stock options
Securities premium on shares allotted to 2.30 2.30 2.30
ESOP Trust through Rights Issue
Employee stock options expired 0.12 (0.12) - -
Notes forming part of the Consolidated

Share based payment expense 10.81 10.81 10.81

Transfers to Statutory reserves 223.29 (223.61) (0.32) 0.32 -
Changes in Group's Interest (3.98) (3.98) 42.00 38.02
Gross obligation at fair value to acquire 54.40 54.40 54.40
non-controlling interest
Balance as at 31st March 2022 2,425.29 50.00 7,157.29 813.29 43.04 6,146.97 (57.94) 21.47 - 50.31 16,649.71 141.46 16,791.17

B. Other Equity
₹ in crores
Reserves and Surplus Item of Other Comprehensive Income
st

Debt Equity Total Non-

Employee Effective Foreign
Particulars Capital instruments instruments Other controlling Total
Statutory Securities General stock Retained portion of Currency
redemption through OCI through OCI Equity Interests
reserve premium reserve options earnings cash flow Translation
reserve (Refer note (Refer note
outstanding hedges Reserve
36) 36)
Balance as at 1st April 2022 2,425.29 50.00 7,157.29 813.29 43.04 6,146.97 (57.94) 21.47 - 50.31 16,649.71 141.46 16,791.17
Financial

Changes in accounting policy / prior - -

Corporate

as at 31 March 2023

period errors
Overview & IR

Restated balance as at 1st April 2022 - -

Profit for the year 2,072.40 - - - - 2,072.40 (1.20) 2,071.20
Other Comprehensive Income (13.35) (67.90) - (4.74) 52.36 (33.63) (1.08) (34.71)
Total Comprehensive Income - - - - - 2,059.05 (67.90) - (4.74) 52.36 2,038.77 (2.28) 2,036.49
Report
Board’s

Dividend paid on equity shares (including (443.87) (443.87) (1.03) (444.90)

tax thereon)
Transfers to Securities premium on 11.48 (11.48) - -
exercise of employee stock options
Securities premium on shares allotted to 1.58 1.58 1.58
ESOP Trust through Rights Issue
Employee stock options expired 0.54 (0.54) - -
Analysis

Share based payment expense 9.17 9.17 9.17

Transfers to Statutory reserves 402.81 (402.86) (0.05) 0.05 (0.00)
Statements
Management
Discussion and

Changes in Group's Interest (1.35) (1.35) 3.15 1.80

Gross obligation at fair value to acquire 59.41 59.41 59.41
non-controlling interest
Balance as at 31 st March 2023 2,828.10 50.00 7,170.35 813.83 40.19 7,417.35 (125.84) 21.47 (4.74) 102.67 18,313.37 141.35 18,454.72
Report on
Corporate
Governance

The accompanying notes 1 to 57 form an integral part of the consolidated financial statements.
In terms of our report attached.
For and on behalf of the Board of Directors
For Deloitte Haskins & Sells Mahindra & Mahindra Financial Services Limited
Report

Chartered Accountants
Business

Firm's Registration No: 117365W Dr. Anish Shah Ramesh Iyer

Chairman Vice-Chairman & Managing Director
Responsibility

Rupen K. Bhatt [DIN: 02719429] [DIN: 00220759]

& Sustainability

Partner
Membership No: 046930 Vivek Karve Brijbala Batwal
Chief Financial Officer Company Secretary
For Mukund M. Chitale & Co. Membership No: F5220
Chartered Accountants
Financial

Firm's Registration No: 106655W

Standalone

Statements

M. M. Chitale
Partner
Notes forming part of the Consolidated
C

Membership No: 14054

Place: Mumbai Place: Mumbai
Date: 28th April 2023 Date: 28th April 2023
INTEGRATED REPORT 2022-23
Financial
Statements
 onsolidated

415
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Consolidated
st
Statement of Cash Flows Consolidated
st
Statement of Cash Flows
as at 31 March 2023 as at 31 March 2023

Cash and cash equivalents Cash and cash equivalents

₹ in crores ₹ in crores
Year ended Year ended Year ended Year ended
Particulars Particulars
31st March 2023 31st March 2022 31st March 2023 31st March 2022
A) CASH FLOW FROM OPERATING ACTIVITIES C) CASH FLOW FROM FINANCING ACTIVITIES
Profit before exceptional items and taxes 2,816.50 1,483.83 Proceeds from borrowings through Debt Securities 17,076.95 7,785.50
Adjustments for: Repayment of borrowings through Debt Securities (10,760.95) (5,867.80)
Depreciation, amortisation and impairment 225.96 151.99 Proceeds from Borrowings (Other than Debt Securities) 35,257.97 40,858.62
Impairment on financial instruments (excluding bad debts and write offs) (979.77) (89.75) Repayment of Borrowings (Other than Debt Securities) (19,830.17) (44,631.84)
Bad debts and write offs 2,213.36 2,806.54 Proceeds from borrowings through Subordinated Liabilities 380.00 132.91
Interest expense 5,082.95 4,353.53 Repayment of borrowings through Subordinated Liabilities (70.01) (155.17)
Interest income from loans (11,252.97) (10,235.58) (Decrease) / Increase in loans repayable on demand and cash credit / overdraft 169.97 -
Interest income from other deposits with banks (210.08) (200.06) facilities with banks (net)
Net (Gain) / loss on fair value of derivative financial instruments (2.68) 7.32 Increase / (decrease) in Public deposits (net) (2,859.08) (1,141.25)
Unrealised foreign exchange gain / loss (96.85) (90.38) Payments for principal portion of lease liability (68.72) (54.66)
Share based payments to employees 10.00 13.51 Dividend paid (443.99) (99.19)
Net gain on fair value changes 26.74 (11.70) NET CASH GENERATED FROM / (USED IN) FINANCING ACTIVITIES (C) 18,851.96 (3,172.88)
Interest income on investments (617.60) (387.32) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (178.72) (44.23)
Dividend income - - Cash and Cash Equivalents at the beginning of the year 765.18 808.53
Net gain on derecognition of property, plant and equipment (3.30) (1.65) Cash and Cash Equivalents balance on the date of acquisition of subsidiary 0.07 1.73
Net (gain) / loss on sale of investments (4.89) 35.97 company
Operating profit / (loss) before working capital changes (2,792.62) (2,163.77) Unrealised gain / (loss) on foreign currency cash and cash equivalents - (0.71)
Adjustments for changes in working capital - CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (refer note 3) 586.53 765.32
Loans (21,090.47) (4,956.23) Components of Cash and Cash Equivalents
Trade receivables (22.15) (20.31) Cash and cash equivalents at the end of the year
Other financial assets (147.82) (13.75) - Cash on hand 45.51 54.87
Other financial liabilities 31.73 215.11 - Cheques and drafts on hand 17.65 36.30
Other non-financial assets (113.33) (2.74) - Balances with banks in current accounts 243.87 283.65
Trade Payables 131.94 361.01 -Term deposits with original maturity up to 3 months 279.50 390.50
Other non-financial liabilities (1.05) 14.21 Total 586.53 765.32
Derivative financial instruments 35.88 0.14
Provisions 24.31 0.22 Note :
Cash generated from / (used in) operations before adjustments for (23,943.58) (6,566.10) 1) The above Cash Flow Statement has been prepared under the 'Indirect method' as set out in Ind AS 7 on 'Statement of Cash
interest received and interest paid Flows'.
Interest paid (5,201.64) (4,826.59) 2) Purchase of Property, plant and equipment and intangible assets represents additions to Property, plant and equipment and
Interest received from loans 12,283.67 11,983.97 intangible assets adjusted for movement of capital-work-in-progress during the year.
Cash generated from / (used in) operations (16,861.55) 591.27
Income taxes paid (net of refunds) (533.76) (573.22)
NET CASH GENERATED FROM / (USED IN) OPERATING ACTIVITIES (A) (17,395.31) 18.06 In terms of our report attached.
B) CASH FLOW FROM INVESTING ACTIVITIES For and on behalf of the Board of Directors
Purchase of property, plant and equipment and intangible assets (413.29) (300.68) For Deloitte Haskins & Sells Mahindra & Mahindra Financial Services Limited
Proceeds from sale of Property, plant and equipment 14.75 6.58 Chartered Accountants
Purchase of investments measured at amortised cost (2,165.66) (223.76) Firm's Registration No: 117365W Dr. Anish Shah Ramesh Iyer
Proceeds from sale of investments measured at amortised cost 2,591.30 84.18 Chairman Vice-Chairman & Managing Director
Increase / (decrease) in investment in Triparty Repo Dealing System (TREPS) (net) - 2,404.00 Rupen K. Bhatt [DIN: 02719429] [DIN: 00220759]
Purchase of investments measured at FVOCI (915.95) (102.62) Partner
Proceeds from sale of investments measured at FVOCI 345.34 39.06 Membership No: 046930 Vivek Karve Brijbala Batwal
Purchase of investments measured at FVTPL (4,458.69) (11,759.03) Chief Financial Officer Company Secretary
For Mukund M. Chitale & Co. Membership No: F5220
Proceeds from sale of investments measured at FVTPL 3,248.45 13,072.66
Chartered Accountants
Purchase of investments measured at cost - (33.99)
Firm's Registration No: 106655W
Proceeds from / (Investments in) term deposits with banks (net) (671.02) (633.93)
Dividend income received - -
M. M. Chitale
Interest received from other deposits with banks 223.93 143.68 Partner
Interest income received on investments measured at amortised cost, FVOCI, 565.49 414.41 Membership No: 14054
FVTPL and at cost Place: Mumbai Place: Mumbai
Change in Earmarked balances with banks (0.02) 0.02 Date: 28th April 2023 Date: 28th April 2023
NET CASH GENERATED FROM / (USED IN) INVESTING ACTIVITIES (B) (1,635.37) 3,110.59

416 Empowering Emerging India INTEGRATED REPORT 2022-23 417

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

1 COMPANY INFORMATION requires a change in the accounting policy Associates The key assumptions concerning the
Mahindra & Mahindra Financial Services hitherto in use. Associates are the entities over which the future and other key sources of estimation
Limited (‘the Company’) with Corporate ID No.: Group has significant influence. Investment in uncertainty at the reporting date, that
L65921MH1991PLC059642, incorporated on These consolidated financial statements have associates are accounted for using the equity have a significant risk of causing a material
1 st January 1991 and domiciled in India, is a public been approved by the Company's Board of method of accounting, after initially being adjustment to the carrying amounts of
limited company, headquartered in Mumbai. The Directors and authorised for issue on 28th recognised at cost. assets and liabilities within the next financial
Company is a Non-Banking Financial Company April 2023. year, are described below. The Group based its
(‘NBFC’), primarily engaged in financing new and pre- Joint venture assumptions and estimates on parameters
owned auto, utility vehicles, tractors, passenger 2.2 Functional and presentation currency available when the financial statements

A joint venture is a joint arrangement
cars and commercial vehicles through its PAN India These financial statements are presented in were issued. Existing circumstances and
whereby the parties that have joint control
branch network. The Company has a diversified Indian Rupees ('INR' or '₹') which is also the assumptions about future developments,
of the arrangement have the rights to the
lending portfolio across retail, small and medium Group's functional currency. All amounts however, may change due to market changes
net assets of the arrangement. Investment
enterprises and commercial customers with a are rounded-off to the nearest crore, unless or circumstances arising that are beyond
in joint ventures are accounted for using the
significant presence in rural and semi-urban India. indicated otherwise. the control of the Group. Such changes
equity method of accounting, after initially
The Company is registered as a Systemically are reflected in the assumptions when
being recognised at cost.
Important Deposit Accepting NBFC as defined 2.3 Basis of measurement they occur.
under Section 45-IA of the Reserve Bank of The consolidated financial statements have 2.5 Measurement of fair values
India (‘RBI’) Act, 1934 with effect from 4th Following are areas that involved a higher
been prepared on the historical cost basis The Group's certain accounting policies and
September 1998, with registration no. 13.00996 degree of estimate and judgment or
except for certain financial instruments disclosures require the measurement of fair
and classified as NBFC-Investment and Credit complexity in determining the carrying
which are measured at fair values as required values, for both financial and non-financial
Company (NBFC-ICC) pursuant to circular amount of some assets and liabilities.
by relevant Ind AS. assets and liabilities.
DNBR (PD) CC.No.097/03.10.001/2018-19
dated 22nd February, 2019. The equity shares Effective Interest Rate (EIR) Method
2.4 Basis of consolidation The Group has established policies and
of the Company are listed on the National The Group recognises interest income
The consolidated financial statements procedures with respect to the measurement
Stock Exchange of India Limited ("NSE") and / expense using a rate of return that
incorporate the financial statements of the of fair values.
the BSE Limited ("BSE") in India. The Company represents the best estimate of a constant
Company and its subsidiaries, associates and
is a subsidiary of Mahindra & Mahindra Limited. rate of return over the expected life of the
joint ventures. Fair values are categorised into different
The Company's registered office is at Gateway loans given / taken. This estimation, by nature,
levels in a fair value hierarchy based on
Building, Apollo Bunder, Mumbai 400001, India. requires an element of judgment regarding
Subsidiaries the inputs used in the valuation techniques
the expected behaviour and life-cycle of the
Subsidiaries are entities over which the Group as follows:
2 SUMMARY OF SIGNIFICANT ACCOUNTING instruments, as well as expected changes to
POLICIES has control. Subsidiaries are consolidated other fee income / expense that are integral
on a line-by-line basis from the date the -L
 evel 1: Quoted prices (unadjusted) in active
2.1 Statement of compliance and basis for parts of the instrument.
control is transferred to the Group. They are markets for identical assets and liabilities.
preparation and presentation of financial
deconsolidated from the date that control Impairment of Financial Assets
statements -L
 evel 2: Inputs other than quoted prices
ceases. Changes in the Group's interest in
The consolidated financial statements of included in Level 1 that are obser vable The measurement of impairment losses
subsidiaries that do not result in a loss of
Mahindra & Mahindra Financial Services for the asset or liability, either directly on loan assets and commitments, requires
control are accounted as equity transactions.
Limited ('the Parent') and its subsidiaries or indirectly. judgment, in estimating the amount and
The carrying amount of the Company's
('the Group') and its associates and joint timing of future cash flows and recoverability
interests and the non-controlling interests
ventures have been prepared in accordance -L
 evel 3: Inputs for the asset or liability that of collateral values while determining the
("NCI") are adjusted to reflect the changes
with the Indian Accounting Standards as per are not based on observable market data impairment losses and assessing a significant
in their relative interests in the subsidiaries.
the Companies (Indian Accounting Standards) (unobservable inputs). increase in credit risk.
Any difference between the amount by which
Rules 2015 as amended and notified under the non-controlling interests are adjusted
Section 133 of the Companies Act, 2013 2.6 Use of estimates and judgments and The Group’s Expected Credit Loss (ECL)
and the fair value of the consideration paid
(“the Act”), in conformity with the accounting Estimation uncertainty calculation is the output of a complex model
or received is recognised directly in equity
principles generally accepted in India and with a number of underlying assumptions
and attributed to owners of the Company. In preparing these financial statements,
other relevant provisions of the Act. regarding the choice of variable inputs and
Inter-company transactions, balances management has made judgments, estimates
their interdependencies. Elements of the
and unrealised gains on transactions and assumptions that affect the application
Any application guidance / clarifications / ECL model that are considered accounting
between group companies are eliminated. of the Group’s accounting policies and the
directions / expectations issued by RBI or judgments and estimates include:
Unrealised losses are also eliminated reported amounts of assets, liabilities,
other regulators are implemented as and unless the transaction provides evidence income, expenses and the disclosures of
when they are issued / applicable. - The Group’s criteria for assessing if
of an impairment of the asset transferred. contingent liabilities. Actual results may
there has been a significant increase in
These financial statements are prepared by differ from these estimates. Estimates and
Accounting policies have been consistently credit risk
applying uniform accounting policies in use at underlying assumptions are reviewed on an
applied except where a newly-issued the Group. ongoing basis. Revisions to estimates are
accounting standard is initially adopted or a recognised prospectively.
revision to an existing accounting standard

418 Empowering Emerging India INTEGRATED REPORT 2022-23 419

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

- The segmentation of financial assets Provision for income tax and deferred tax The calculation of ECL under Ind AS 109 environment, including those long lasting
when their ECL is assessed on a assets: involves significant judgements, assumptions adverse impact arising from the COVID-19
collective basis The Group uses estimates and judgments and estimates. The level of estimation pandemic, are continuously subjected to
based on the relevant rulings in the areas uncertainty and judgement has increased review throughout the year. The management
- Development of ECL model, including the of allocation of revenue, costs, allowances during financial year as a result of the focused on the key assumptions,
various formulae and the choice of inputs and disallowances which is exercised while economic effects of the COVID-19 outbreak, methodologies and in-model and post-model
determining the provision for income tax, including significant judgements relating to: adjustments applied to provisions under
- 
Selection of forward-looking including the amount expected to be paid / Ind AS 109. The economic uncertainty and
macroeconomic scenarios and their recovered for uncertain tax positions. A - the selection and weightage of economic unprecedented conditions not experienced
probability weightings, to derive the deferred tax asset is recognised to the scenarios, given rapidly changing since the implementation of Ind AS 109
economic inputs into the ECL model extent that it is probable that future taxable economic conditions in an unprecedented challenged the usefulness of model outputs.
profit will be available against which the manner, uncertainty as to the effect of While the use of judgemental overlays and
- 
Management overlay, if any, used in deductible temporary differences and tax government and RBI support measures post-model adjustments should ideally be
circumstances where management losses, if any, can be utilised. Accordingly, the designed to alleviate adverse economic limited, their use was considered necessary,
judges that the existing inputs, Group exercises its judgment to reassess the impacts, and a wider distribution of where applicable, during the financial year,
assumptions and model techniques do carrying amount of deferred tax assets at economic forecasts than before the and might likely to continue to be required in
not capture all the risk factors relevant the end of each reporting period. pandemic. The key judgements are the future reporting periods.
to the Group's lending portfolios. length of time over which the economic
Defined Benefit Plans: effects of the pandemic will occur, As a result of government and bank support
It has been the Group’s policy to regularly the speed and shape of recovery. The relief measures implemented during previous
The cost of the defined benefit gratuity
review its model in the context of actual loss main factors include the effectiveness years, significant credit deterioration has not
plan and the present value of the gratuity
experience and adjust when necessary (refer of pandemic containment measures, yet occurred. This delay increases uncertainty
obligation are determined using actuarial
note 51). the pace of roll-out and effectiveness on the timing of the stress and the realisation
valuations. An actuarial valuation involves
of vaccines, and the emergence of of defaults. Management has applied certain
making various assumptions that may differ
Provisions and contingent liabilities new variants of the virus, plus a range parameter driven adjustments to modelled
from actual developments in the future. These
The Group does not recognise a contingent of geopolitical uncertainties, which outputs to reflect the uncertainty in relation
include the determination of the discount
liability but discloses its existence in the together represent a very high degree to the timing of stress and the degree to
rate, future salary increases and mortality
financial statements. of estimation uncertainty, particularly in which economic consensus has yet captured
rates. Due to the complexities involved in the
assessing worst case scenario; the range of economic uncertainty. As a
valuation and its long-term nature, a defined
Contingent assets are neither recognised result, ECL is higher than would be the case
benefit obligation is sensitive to changes
nor disclosed in the financial statements. - estimating the economic effects of if it were based on the forecast economic
in these assumptions. All assumptions are
However, contingent assets are assessed those scenarios on ECL, where there scenarios alone.
reviewed at each reporting date.
continually and if it is virtually certain that is no observable historical trend that
an inflow of economic benefits will arise, the can be reflected in the models that will The Group has developed various accounting
Estimation uncertainty relating to the
asset and related income are recognised in accurately represent the effects of the estimates in these Financial Statements
global health pandemic from COVID-19
the period in which the change occurs. economic changes of the severity and based on forecasts of economic conditions
and current Macro-economic scenario:
speed brought about by the COVID-19 which reflect expectations and assumptions
The COVID-19 outbreak and its effect on the outbreak. Modelled assumptions and as at 31st March 2023 about future events
Contingent liabilities in respect of show cause
economy has impacted our customers and linkages between economic factors that the management believe are reasonable
notices are considered only when converted
our performance during the prior years until and credit losses may underestimate or in the circumstances. There is a considerable
into demands.
the year ended 31 st March 2022, though the overestimate ECL in these conditions, degree of judgement involved in preparing
pandemic's spread remains curtailed by the and there is significant uncertainty in forecasts. The underlying assumptions are
The reliable measure of the amounts
roll out of vaccines through out the world the estimation of parameters such as also subject to uncertainties which are often
pertaining to litigations and the regulatory
and as a result the economies around the collateral values and loss severity; and outside the control of the Group. Accordingly,
proceedings in the ordinary course of
world have returned to normalcy which had actual economic conditions are likely to
the Group’s business are disclosed as
a favourable impact on business and financial - the identification of customers be different from those forecast since
contingent liabilities.
performance of the Group during the current experiencing significant increases anticipated events frequently do not occur as
financial year ended 31 st March 2023. in credit risk and credit impairment, expected, and the effect of those differences
Estimates and judgments are continually
evaluated and are based on historical particularly where those customers may significantly impact accounting estimates
Economic forecasts are still subject to a have accepted payment deferrals and included in these financial statements.
experience and other factors, including
varied degree of uncertainty in the current other reliefs designed to address short-
expectations of future events that may
environment which directly / indirectly linked term liquidity issues given muted default The significant accounting estimates
have a financial impact on the Group and
to long lasting disruptions caused by outbreak experience to date. impacted by these forecasts and associated
that are believed to be reasonable under
of COVID-19. Limitations of forecasts and uncertainties are predominantly related
the circumstances.
economic models require a greater reliance 
Judgements (including overlays, if any) to expected credit losses, fair value
on management judgement in addressing in relation to credit impairments and the measurement, and recoverable amount
both the error inherent in economic forecasts impact of macro-economic risks on the credit assessments of non-financial assets.
and in assessing associated ECL outcomes.

420 Empowering Emerging India INTEGRATED REPORT 2022-23 421

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Going Concern Additional interest and interest on trade c) Subvention income to the Group and the amount of the
Although COVID-19 has had an adverse advances, are recognised when they become 
Subvention income received from dividend can be measured reliably.
impact on the functioning of the financial measurable and when it is not unreasonable manufacturer / dealers at the inception of the
sector companies, until the year ended 31 st to expect their ultimate collection. loan contracts which is directly attributable - 
Interest income from on investments
March 2022, the financial statements of the to individual loan contracts in respect is recognised when it is certain that
Group are prepared on a going concern basis Income from bill discounting is recognised of vehicles financed is recognised in the the economic benefits will flow to the
for the year ended 31 st March 2023. over the tenure of the instrument so as to Statement of profit and loss using the effective Group and the amount of income can
provide a constant periodic rate of return. interest method over the tenor of such loan be measured reliably. Interest income

Management is of the view that it is contracts measured at amortised cost. is accrued on a time basis, by reference
considered appropriate to prepare these b) Recognition of interest income on In case of subvention income which is to the principal outstanding and at the
financial statements on a going concern basis securitised loans subject to confirmation from manufacturer effective interest rate applicable.
as the Group expects to generate sufficient The Parent company securitises certain and received later than inception date is
cash flows from operating activities and pools of loan receivables in accordance recognised in the Statement of profit and loss 2.8 Property, Plant and Equipments (PPE)
unused lines of credit to meet its obligations with applicable RBI guidelines. The Parent using straight line method over the tenor of PPE are stated at cost of acquisition (including
in the foreseeable future (refer note 51). Company, being Originator of these loan such loan contracts. incidental expenses), less accumulated
receivables, also acts as Servicer with a depreciation and accumulated impairment loss, if
2.7 Revenue recognition : responsibility of collection of receivables d) Rental Income any. The purchase price or construction cost is the
a) Recognition of interest income on loans from its borrowers and depositing the same in Income from operating leases is recognised aggregate amount paid and the fair value of any
Collection and Payout Account maintained by in the Statement of profit and loss on a other consideration given to acquire the asset.
Interest income is recognised in Statement
the SPV Trust for making scheduled payouts straight-line basis over the lease term. In
of profit and loss using the effective interest
to the investors in Pass Through Certificates certain lease arrangements, variable rental Advances paid towards the acquisition of PPE
method for all financial instruments measured
(PTCs) issued by the SPV Trust. These charges are also recognised over and above outstanding at each balance sheet date are
at amortised cost, debt instruments measured
securitisation transactions also requires the minimum commitment charges based on disclosed separately under Other non-financial
at FVOCI and debt instruments designated at
Parent Company to provide for first loss usage pattern and make / model of the asset. assets. Capital work in progress comprises the
FVTPL. The ‘effective interest rate’ is the rate
credit enhancement in various forms, such cost of PPE that are not ready for its intended use
that exactly discounts estimated future cash
as corporate guarantee, cash collateral, e) Fees, charges and commission income: at the reporting date. Capital work-in-progress is
payments or receipts through the expected
subscription to subordinated PTCs as credit stated at cost, net of impairment loss, if any.
life of the financial instrument. 
Fee based income are recognised when
support in the event of shortfall in collections
they become measurable and when it is
from underlying loan contracts. By virtue of Subsequent expenditure is recognised as an
The calculation of the effective interest rate probable to expect their ultimate collection.
existence of credit enhancement, the Parent increase in the carrying amount of the asset
includes transaction costs and fees that are Commission and brokerage income earned
Company is exposed to credit risk, being the when it is probable that future economic
an integral part of the contract. Transaction for the services rendered are recognised as
expected losses that will be incurred on the benefits deriving from the cost incurred will flow
costs include incremental costs that are and when they are due.
transferred loan receivables to the extent of to the enterprise and the cost of the item can
directly attributable to the acquisition of
the credit enhancement provided. be measured.
financial asset. f) Sale of services:
In view of the above, the Parent Company Income from sale of services are recognised Depreciation on PPE is provided on straight-line
If expectations regarding the cash flows on on rendering of such services.
has retained substantially all the risks basis in accordance with the useful lives specified
the financial asset are revised for reasons
and rewards of ownership of the financial in Schedule II to the Companies Act, 2013 on a pro-
other than credit risk, the adjustment is Brokerage Income, Handling Charges &
asset and thereby does not meet the de- rata basis subject to exceptions listed here below.
recorded as a positive or negative adjustment Broker Retainer Fees is recognised for net
recognition criteria as set out in Ind AS 109. Depreciation methods, useful lives and residual
to the carrying amount of the asset in the of Goods and Service Tax (GST) amount on
Consideration received in this transaction values are reviewed in each financial year, and
balance sheet with an increase or reduction rendering of services. Brokerage income
is presented as "Associated liability related changes, if any, are accounted for prospectively.
in interest income. The adjustment is is recognised on receiving details of the
to Securitisation transactions" and the loan
subsequently amortised through Interest policy issued by the insurance company or
receivables securitised are continued to be In accordance with Ind AS 116 - Leases, the Right-
income in the Statement of profit and loss. receipt of brokerage whichever is earlier.
reflected as loan assets. These loan assets Of-Use assets (Leasehold premises) are initially
are carried at amortised cost and the interest The revenue from rendering of consultancy recognised at cost which comprises of initial
The Group calculates interest income related services is recognised in proportion to the
income is recognised by applying the EIR to amount of lease liability adjusted for any lease
to financing business by applying the EIR to stage of completion of the transaction at the
the gross carrying amount of financial assets payments made at or prior to the commencement
the gross carrying amount of financial assets reporting date.
other than credit-impaired assets. date of the lease plus any initial direct costs less
other than credit-impaired assets.
any lease incentives. These are subsequently
When a financial asset becomes credit- g) Dividend and interest income on measured at cost less accumulated depreciation
When a financial asset becomes credit- investments:
impaired, the Parent Company calculates and impairment losses, if any. Right-Of-Use assets
impaired, the Group calculates interest
interest income by applying the effective - 
Dividends are recognised in Statement (Leasehold premises) are depreciated from the
income by applying the effective interest rate
interest rate to the net amortised cost of of profit and loss only when the right commencement date on a straight-line basis over
to the net amortised cost of the financial
the financial asset. If the financial asset cures to receive payment is established, it is the shorter of the lease term and useful life of
asset. If the financial assets cures and is no
and is no longer credit-impaired, the Parent probable that the economic benefits the underlying asset.
longer credit-impaired, the Group reverts to
Company reverts to calculating interest associated with the dividend will flow
calculating interest income on a gross basis.
income on a gross basis.

422 Empowering Emerging India INTEGRATED REPORT 2022-23 423

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

The estimated useful lives used for computation year, and changes, if any, are accounted on assets and liabilities carried at fair The financial asset is held within a business
of depreciation are as follows: for prospectively. value are reported as part of the fair model of collecting contractual cash flows
value gain or loss. Thus, translation as per the contractual terms that give rise
Buildings 60 years An intangible asset is derecognised on disposal, or differences on non-monetary assets and on specified dates to cash flows that are
Computers and Data 3 to 6 years when no future economic benefits are expected liabilities such as equity instruments solely payment of principal and interest
processing units from use or disposal. Gains or losses arising from held at fair value through profit or (‘SPPI’) on the principal amount outstanding.
Furniture and fixtures 10 years derecognition of an intangible asset, measured as loss are recognised in profit or loss as Accordingly, the Group measures Bank
Office equipments 5 years the difference between the net disposal proceeds part of the fair value gain or loss and balances, Loans, Trade receivables and other
and the carrying amount of the asset are translation differences on non-monetary financial instruments at amortised cost.
Vehicles 8 years to 10 years
recognised in the Statement of Profit and Loss assets such as equity investments
Vehicles under lease Over the lease term of the when the asset is derecognised. classified as FVOCI are recognised FVOCI - debt instruments -
respective agreements
in other comprehensive income. The Group measures its debt instruments
Right-Of-Use assets Over the lease term of the b) Intangible assets under development : Non-monetary items that are measured
(Leasehold premises) . respective agreements at FVOCI when the instrument is held within
The Group, initially recognises intangible at historical cost in foreign currency are a business model, the objective of which is
asset under development at cost during not retranslated at reporting date. achieved by both collecting contractual cash
Exceptions to useful lives specified in
the development phase based on the flows and selling financial assets; and the
Schedule II to the Companies Act, 2013 - 2.11 Financial instruments :
management's judgement that technological contractual terms of the financial asset meet
Assets costing less than ₹5000/- are fully and economic feasibility is confirmed. Upon a) Initial Recognition - the SPPI test.
depreciated in the period of purchase. completion of the development phase, the Financial assets and financial liabilities
amount is capitalised as intangible asset. are recognised when the Group becomes FVOCI - equity instruments -
Vehicles provided to employees as part of Cost-
a party to the contractual provisions of The Group subsequently measures all equity
To-Company (CTC) scheme are depreciated using 2.10 Foreign exchange transactions and the instruments. investments at fair value through profit or
estimated useful life of 4 years. translations : loss, unless the management has elected
a) Initial recognition Financial assets and financial liabilities are to classify irrevocably some of its equity
PPE is derecognised on disposal or when no

Transactions in foreign currencies initially recognised at fair value. Transaction investments as equity instruments at FVOCI,
future economic benefits are expected from
are recognised at the prevailing costs that are directly attributable to the when such instruments meet the definition of
its use. Assets retired from active use and held
exchange rates between the reporting acquisition or issue of financial assets and Equity under Ind AS 32 Financial Instruments
for disposal are generally stated at the lower of
currency and a foreign currency on the financial liabilities (other than financial assets and are not held for trading.
their net book value and net realisable value. Any
transaction date. and financial liabilities at FVTPL) are added to
gain or loss arising on derecognition of the asset
or deducted from the fair value of the financial If the Group elects to classify an equity
(calculated as the difference between the net
b) Translation assets or financial liabilities, as appropriate, on instrument as at FVOCI, then all fair value
disposal proceeds and the net carrying amount
initial recognition. However, trade receivables changes on the instrument, excluding
of the asset) is recognised in other income Transactions in foreign currencies are
that do not contain a significant financing dividends, are recognised in other
/ netted off from any loss on disposal in the translated into the functional currency
component are measured at transaction comprehensive income. This cumulative
Statement of profit and loss in the year the asset using the exchange rates at the dates
price. Transaction costs directly attributable gain or loss is not reclassified to statement
is derecognised. of the transactions. Foreign exchange
to the acquisition of financial assets or of profit and loss on disposal of such
gains and losses resulting from the
financial liabilities at FVTPL are recognised instruments. Investments representing
2.9 a) Intangible assets : settlement of such transactions and
immediately in Statement of profit and loss. equity interest in subsidiary, joint venture

Intangible assets are stated at cost less from the translation of monetary assets
and associate are carried at cost less any
accumulated amortisation and accumulated and liabilities denominated in foreign
b) Classification and subsequent provision for impairment.
impairment loss, if any. currencies at year end exchange rates
measurement -
are recognised in Statement of profit
- Financial assets Financial assets are not reclassified
Subsequent expenditure is capitalised only and loss.
subsequent to their initial recognition, except
when it increases the future economic benefits  On initial recognition, a financial asset is if and in the period the Group changes its
embodied in the specific asset to which it relates. Foreign exchange differences regarded classified as measured at business model for managing financial assets.
All other expenditure is recognised in profit or as an adjustment to borrowing costs
- Amortised cost; All financial asset not classified as measured
loss as incurred. are presented in the Statement of profit
at amortised cost or FVOCI are measured at
and loss, within finance costs. All other - FVOCI - debt instruments; FVTPL. This includes all derivative financial
Intangible assets comprises of computer software foreign exchange gains and losses are
- FVOCI - equity instruments; assets unless designated as effective hedge
which is amortised over the estimated useful life. presented in the Statement of profit and
instrument which are accounted as per hedge
The amortisation period is lower of license period loss on a net basis. - FVTPL accounting requirements discussed below.
or 36 months which is based on management’s
estimates of useful life. Amortisation is calculated Non-monetary items that are measured
Amortised cost - Subsequent measurement of financial
using the straight line method to write down the at fair value in a foreign currency are
The Group's business model is not assessed assets
cost of intangible assets over their amortisation translated using the exchange rates
at the date when the fair value was on an instrument-by-instrument basis, but 
Financial assets at amortised cost are
period. Amortisation methods, useful lives and
determined. Translation differences at a higher level of aggregated portfolios subsequently measured at amortised cost
residual values are reviewed in each financial
being the level at which they are managed. using effective interest method. The amortised

424 Empowering Emerging India INTEGRATED REPORT 2022-23 425

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

cost is reduced by impairment losses. Financial liabilities - of the transferred assets, the transferred profit or loss depends on the nature of the
Interest income and impairment provisions Financial liabilities are classified and measured assets are not derecognised. hedging relationship and the nature of the
are recognised in Statement of profit and at amortised cost or FVTPL. A financial liability hedged item.
loss. Any gain and loss on derecognition is is classified as at FVTPL if it is classified as Financial liabilities
recognised in Statement of profit and loss. held-for-trading or it is a derivative (that does A financial liability is derecognised when The Group designates certain hedging
Debt investment at FVOCI are subsequently not meet hedge accounting requirements) or the obligation in respect of the liability instruments, which include derivatives in
measured at fair value. Interest income at it is designated as such on initial recognition. is discharged, cancelled or expires. The respect of foreign currency risk, as either fair
coupon rate and impairment provision, if any, Other financial liabilities are subsequently difference between the carrying value of the value hedges or cash flow hedges. Hedges of
are recognised in Statement of profit and measured at amortised cost using the financial liability and the consideration paid is foreign exchange risk on firm commitments
loss. Net gains or losses on fair valuation effective interest method. Interest expense recognised in Statement of profit and loss. are accounted for as cash flow hedges.
are recognised in OCI. On derecognition, and foreign exchange gains and losses are
gains and losses accumulated in OCI are recognised in Statement of profit and loss. The Group also derecognises a financial At the inception of the hedge relationship, the
reclassified to Statement of profit and loss. Any gain or loss on derecognition is also liability when its terms are modified and the Group documents the relationship between
For equity investments, the Group makes recognised in Statement of profit and loss. cash flows under the modified terms are the hedging instrument and the hedged item,
an election on an instrument-by-instrument substantially different. In this case, a new along with its risk management objectives and
basis to designate equity investments d) Financial guarantee contracts: financial liability based on the modified terms its strategy for undertaking various hedge
as measured at FVOCI. These elected is recognised at fair value. transactions. Furthermore, at the inception of
A financial guarantee contract is a contract
investments are measured at fair value with the hedge and on an ongoing basis, the Group
that requires the issuer to make specified
gains and losses arising from changes in fair f) Offsetting documents whether the hedging instrument
payments to reimburse the holder for a loss
value recognised in other comprehensive is highly effective in offsetting changes in
it incurs because a specified debtor fails to Financial assets and financial liabilities are
income and accumulated in the reserves. The fair values or cash flows of the hedged item
make payments when due in accordance with offset and the net amount presented in the
cumulative gain or loss is not reclassified to attributable to the hedged risk.
the terms of a debt instrument. balance sheet when, and only when, the Group
Statement of profit and loss on disposal of
currently has a legally enforceable right to
the investments. These investments in equity Changes in fair value of the designated
Financial guarantee contracts issued by the set off the amounts and it intends either to
are not held for trading. Instead, they are portion of derivatives that qualify as fair
Group are initially measured at their fair settle them on a net basis or to realise the
held for strategic purpose. Dividend income value hedges are recognised in profit or loss
values and, if not designated as at FVTPL, are asset and settle the liability simultaneously.
received on such equity investments are immediately, together with any changes in
subsequently measured at the higher of: The legally enforceable right must not be
recognised in Statement of profit and loss. the fair value of the hedged asset or liability
contingent on future events and must be
Equity investments that are not that are attributable to the hedged risk.
- the amount of loss allowance determined in enforceable in the normal course of business
designated as measured at FVOCI are
accordance with impairment requirements of and in the event of default, insolvency or
designated as measured at FVTPL and The effective portion of changes in the fair
Ind AS 109 - Financial Instruments; and bankruptcy of the group or the counterparty.
subsequent changes in fair value are value of derivatives that are designated and
recognised in Statement of profit and loss. qualify as cash flow hedges is recognised
- the amount initially recognised less, when g) Derivative financial instruments and
Financial assets at FVTPL are subsequently in other comprehensive income and
appropriate, the cumulative amount of hedge accounting
measured at fair value. Net gains and losses, accumulated under hedging reserve. The gain
income recognised in accordance with the The Group enters into derivative financial
including any interest or dividend income, are or loss relating to the ineffective portion is
principles of Ind AS 115-Revenue from instruments, primarily foreign exchange
recognised in Statement of profit and loss. recognised immediately in the profit or loss.
Contracts with Customers. forward contracts, currency swaps and
c) Financial liabilities and equity interest rate swaps, to manage its borrowing 
Amounts previously recognised in other
e) Derecognition exposure to foreign exchange and interest
instruments: comprehensive income and accumulated
Financial assets rate risks. in equity (relating to effective portion as
Classification as debt or equity -
The Group derecognises a financial asset described above) are reclassified to profit

Debt and equity instruments issued by Derivatives embedded in non-derivative host
when the contractual rights to the cash flows or loss in the periods when the hedged item
the Group are classified as either financial contracts are treated as separate derivatives
from the financial asset expire, or it transfers affects profit or loss.
liabilities or as equity in accordance with the when their risks and characteristics are not
the rights to receive the contractual cash
substance of the contractual arrangements closely related to those of the host contracts
flows in a transaction in which substantially 
Hedge accounting is discontinued when
and the definitions of a financial liability and and the host contracts are not measured
all of the risks and rewards of ownership the hedging instrument expires or is sold,
an equity instrument. at FVTPL.
of the financial asset are transferred or in terminated, or exercised, or when it no longer
which the Group neither transfers nor retains qualifies for hedge accounting. Any gain
Equity instruments - Derivatives are initially recognised at fair
substantially all of the risks and rewards of or loss recognised in other comprehensive
An equity instrument is any contract that ownership and does not retain control of the value at the date the contracts are entered income and accumulated in equity at that
evidences a residual interest in the assets of financial asset. into and are subsequently remeasured to time remains in equity and is recognised
an entity after deducting all of its liabilities. their fair value at the end of each reporting when the forecast transaction is ultimately
Equity instruments issued by Group are 
If the Group enters into transactions period. The resulting gain / loss is recognised recognised in profit or loss. When a forecast
recognised at the proceeds received. whereby it transfers assets recognised on in Statement of profit and loss immediately transaction is no longer expected to occur,
Transaction costs of an equity transaction its balance sheet, but retains either all or unless the derivative is designated and the gain or loss accumulated in equity is
are recognised as a deduction from equity. substantially all of the risks and rewards effective as a hedging instrument, in which recognised immediately in profit or loss.
event the timing of the recognition in

426 Empowering Emerging India INTEGRATED REPORT 2022-23 427

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

h) Impairment of financial instruments reporting date, including time value of money the modification of contractual terms would as per the Group's policy. However, financial

Equity instruments are not subject to where appropriate. Lifetime ECL represents not be reversed. assets that are written off could still be
impairment under Ind AS 109. the expected credit losses that will result subject to enforcement activities under the
from all possible default events over the Loan modifications that are not identified as Group’s recovery procedures, taking into
The Group recognises lifetime expected expected life of a financial instrument. renegotiated are considered to be commercial account legal advice where appropriate. Any
credit losses (ECL) when there has been restructuring. Where a commercial recoveries made from written off assets are
a significant increase in credit risk since Loss allowances for financial assets measured restructuring results in a modification netted off against the amount of financial
initial recognition and when the financial at amortised cost are deducted from the (whether legalised through an amendment to assets written off during the year under
instrument is credit impaired. If the credit risk gross carrying amount of the assets. For the existing terms or the issuance of a new "Bad debts and write offs" forming part of
on the financial instrument has not increased debt securities at FVOCI, the loss allowance loan contract) such that the Group’s rights "Impairment on financial instruments" in
significantly since initial recognition, the is recognised in OCI and carrying amount to the cash flows under the original contract Statement of profit and loss.
Group measures the loss allowance for that of the financial asset is not reduced in the have expired, the old loan is derecognised and
financial instrument at an amount equal to balance sheet. the new loan is recognised at fair value. The 2.12 Employee benefits:
12 month ECL. The assessment of whether rights to cash flows are generally considered a) Short-term employee benefits
lifetime ECL should be recognised is based on Loan contract renegotiation and to have expired if the commercial restructure
All employee benefits payable wholly within
significant increases in the likelihood or risk modifications: is at market rates and no payment-related
twelve months of receiving employee services
of a default occurring since initial recognition. Loans are identified as renegotiated and concession has been provided. Mandatory and
are classified as short-term employee benefits.
12 month ECL represents the portion of classified as credit impaired when we modify general offer loan modifications that are not
These benefits include salaries and wages,
lifetime ECL that is expected to result from the contractual payment terms due to borrower-specific, for example market-wide
bonus and ex-gratia. Short-term employee
default events on a financial instrument significant credit distress of the borrower. customer relief programmes announced by
benefits are expensed as the related service
that are possible within 12 months after the Renegotiated loans remain classified as credit the Regulator or other statutory body, have
is provided. A liability is recognised for the
reporting date. impaired until there is sufficient evidence to not been classified as renegotiated loans and
amount expected to be paid if the Group has
demonstrate a significant reduction in the so have not resulted in derecognition, but their
a present legal or constructive obligation to
When determining whether credit risk of a risk of non-payment of future cash flows and stage allocation is determined considering all
pay this amount as a result of past service
financial asset has increased significantly retain the designation of renegotiated until available and supportable information under
provided by the employee and the obligation
since initial recognition and when estimating maturity or derecognition. our ECL impairment policy.
can be estimated reliably.
expected credit losses, the Group considers
reasonable and supportable information that A loan that is renegotiated is derecognised i) Collateral repossessed -
b) Contribution to provident fund and ESIC
is relevant and available without undue cost if the existing agreement is cancelled and 
Based on operational requirements, the and National Pension Scheme -
or effort. This includes both quantitative and a new agreement is made on substantially Group’s policy is to determine whether a
The defined contribution plans i.e. provident
qualitative information and analysis, including different terms, or if the terms of an repossessed asset can be best used for its
fund (administered through Regional
on historical experience and forward-looking existing agreement are modified such that internal operations or should be sold. Assets
Provident Fund Office), superannuation
information (refer note 51). the renegotiated loan is a substantially determined to be useful for the internal
scheme and employee state insurance
different financial instrument. Any new loans operations are transferred to their relevant
corporation and National Pension Scheme
Management overlay is used to adjust the that arise following derecognition events asset category for capitalisation at their fair
are post-employment benefit plans under
ECL allowance in circumstances where in these circumstances are considered market value.
which an entity pays fixed contributions
management judges that the existing inputs, to be originated credit impaired financial
and will have no legal and constructive
assumptions and model techniques do not asset and will continue to be disclosed as In the normal course of business, the Group
obligation to pay further amounts beyond its
capture all the risk factors relevant to the renegotiated loans. does not physically repossess assets /
contributions. The Superannuation scheme,
Group's lending portfolios. Emerging local properties or other assets in its retail
a defined contribution scheme, administered
or global macroeconomic, microeconomic or Other than originated credit-impaired loans, portfolio, but engages external agents to
by Life Insurance Corporation of India.
political events, and natural disasters that are all other modified loans could be transferred recover funds, generally by selling at auction,
Prepaid contributions are recognised as an
not incorporated into the current parameters, out of stage 3 if they no longer exhibit any to settle outstanding debt. Any surplus funds
asset to the extent that a cash refund or
risk ratings, or forward looking information evidence of being credit impaired and, in the are returned to the customers / obligors. As a
a reduction in future payments is available.
are examples of such circumstances. case of renegotiated loans, there is sufficient result of this practice, the assets / properties
Group's contribution paid / payable during
The use of management overlay may evidence to demonstrate a significant under legal repossession processes are not
the year to provident fund, Superannuation
impact the amount of ECL recognised. reduction in the risk of non-payment of future recorded on the balance sheet.
scheme, ESIC and National Pension Scheme
The Group recognises lifetime ECL for trade cash flows over the minimum observation
is recognised in the Statement of profit
advances, lease and other receivables. The period, and there are no other indicators of j) Write offs -
and loss.
expected credit losses on these financial impairment. These loans could be transferred The gross carrying amount of a financial
assets are estimated using a provision matrix to stage 1 or 2 based on the risk assessment asset is written off when there is no c) Gratuity -
based on the respective businesses of the mechanism by comparing the risk of a default realistic prospect of further recovery.
Group’s historical credit loss experience, occurring at the reporting date (based on the The Group's liability towards gratuity schemes
This is generally the case when the Group
adjusted for factors that are specific to the modified contractual terms) and the risk of a is determined by independent actuaries,
determines that the debtor / borrower
debtors, general economic conditions and default occurring at initial recognition (based using the projected unit credit method.
does not have assets or sources of income
an assessment of both the current as well on the original, unmodified contractual The present value of the defined benefit
that could generate sufficient cash flows to
as the forecast direction of conditions at the terms). Any amount written off as a result of obligation is determined by discounting the
repay the amounts subject to the write off

428 Empowering Emerging India INTEGRATED REPORT 2022-23 429

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

estimated future cash outflows by reference sheet date on the basis of an independent tax assessment can involve complex reviewed at the end of each reporting
to market yields at the end of the reporting actuarial valuation. issues, which can only be resolved over period and reduced to the extant that
period on government bonds that have terms extended time periods. it is no longer probable that sufficient
approximating to the terms of the related e) Employee stock options : taxable profits will be available to allow
obligation. Past services are recognised  Equity-settled share-based payments to Current tax assets and liabilities all or part of the asset to be recovered.
at the earlier of the plan amendment / employees are recognised as an expense at are offset only if there is a legally Deferred tax is recognised in statement
curtailment and recognition of related the fair value of equity stock option at the enforceable right to set off the of profit or loss, except when they relate
restructuring costs / termination benefits. grant date. The fair value determined at the recognised amounts, and it is intended to items that are recognised in other
The Group determines the net interest grant date of the Equity-settled share-based to realise the asset and settle the comprehensive income or directly in
expense (income) on the net defined benefit payments is expensed on a straight-line basis liability on a net basis or simultaneously. equity, in which case, the deferred tax is
liability (asset) for the period by applying over the vesting period, based on the Group's Current tax is recognised in statement also recognised in other comprehensive
the discount rate used to measure the estimate of equity instruments that will of profit or loss, except when they relate income or directly in equity respectively.
defined benefit obligation at the beginning eventually vest, with a corresponding increase to items that are recognised in other Deferred tax assets and liabilities
of the annual period to the then-net defined in equity. comprehensive income or directly in are offset only if there is a legally
benefit liability (asset), taking into account 2.13 Finance costs : equity, in which case, the current tax is enforceable right to set off current tax
any changes in the net defined benefit also recognised in other comprehensive assets against current tax liabilities and
Finance costs include interest expense
liability (asset) during the period as a result income or directly in equity respectively. the deferred tax assets and the deferred
computed by applying the effective interest
of contributions and benefit payments. Net The management periodically evaluates tax liabilities relate to income taxes
rate on respective financial instruments
interest expense and other expenses related positions taken in the tax returns levied by the same taxation authority
measured at Amortised cost - bank term
to defined benefit plans are recognised in the with respect to situations in which on either the same taxable entity or
loans, associated liabilities in respect of
Statement of profit and loss. applicable tax regulations are subject to different taxable entities which intend
securitisation transactions, non-convertible
interpretation and establishes provisions either to settle current tax liabilities on
debentures, fixed deposits mobilised,
When the calculation results in a potential where appropriate. a net basis or simultaneously.
commercial papers, subordinated debts and
asset for the Group, the recognised asset
exchange differences arising from foreign
is limited to the present value of economic b) Deferred tax : 2.15 Securities issue expenses :
currency borrowings to the extent they are
benefits available in the form of any future Deferred tax assets and liabilities Expenses incurred in connection with fresh
regarded as an adjustment to the interest
refunds from the plan or reductions are recognised for the future tax issue of Share capital are adjusted against
cost. Finance costs are charged to the
in future contribution to the plan. To consequences of temporary differences Securities premium.
Statement of profit and loss.
calculate the present value of economic between the carrying values of assets
benefits, consideration is given to any and liabilities and their respective tax 2.16 Impairment of assets other than
Interest expense on lease liabilities computed
applicable minimum funding requirements. bases. Deferred tax liabilities and assets financial assets :
by applying the Group's weighted average
incremental borrowing rate has been included are measured at the tax rates that The Group reviews the carrying amounts of
under finance costs. are expected to apply in the period in its tangible (PPE, including assets given on
Remeasurement gains / losses - which the liability is settled or the asset operating lease) and intangible assets at the
Remeasurement of defined benefit plans, 2.14 Taxation - Current and deferred tax: realised, based on tax rates (and tax laws) end of each reporting period, to determine
comprising of actuarial gains / losses, that have been enacted or substantively whether there is any indication that those
Income tax expense comprises of current tax
return on plan assets excluding interest enacted by the end of the reporting assets have impaired. If any such indication
and deferred tax. It is recognised in Statement
income are recognised immediately in period. The measurement of deferred exists, the recoverable amount of the asset
of profit and loss except to the extent that
the balance sheet with corresponding tax liabilities and assets reflects the tax is estimated in order to determine the extent
it relates to an item recognised directly in
debit or credit to Other Comprehensive consequence that would follow from of the impairment loss (if any). Recoverable
equity or in other comprehensive income.
Income (OCI). Remeasurements are the manner in which the Group expects, amount is determined for an individual
not reclassified to Statement of profit at the end of the reporting period, to asset, unless the asset does not generate
a) Current tax :
and loss in the subsequent period. recover or settle the carrying amount of cash flows that are largely independent of
Remeasurement gains or losses on long-term Current tax comprises amount of tax its assets and liabilities. those from other assets or group of assets.
compensated absences that are classified as payable in respect of the taxable income
Recoverable amount is the higher of fair
other long-term benefits are recognised in or loss for the year determined in Deferred tax assets are recognised value less costs to sell and value in use. In
Statement of profit and loss. accordance with Income Tax Act, 1961 to the extant that it is probable that assessing value in use, the estimated future
and any adjustment to the tax payable or future taxable income will be available cash flows are discounted to their present
d) Leave encashment / compensated receivable in respect of previous years. against which the deductible temporary value using a pre-tax discount rate that
absences / sick leave - The Group’s current tax is calculated difference could be utilised. Such reflects current market assessments of the
using tax rates that have been enacted or deferred tax assets and liabilities are not
The Group provides for the encashment/ time value of money and the risks specific
substantively enacted by the end of the recognised if the temporary difference
availment of leave with pay subject to to the asset for which the estimates of
reporting period. Significant judgments arises from the initial recognition of
certain rules. The employees are entitled to future cash flows have not been adjusted.
are involved in determining the provision assets and liabilities in a transaction
accumulate leave subject to certain limits If the recoverable amount of an asset (or
for income taxes including judgment on that affects neither the taxable profit
for future encashment / availment. The cash-generating unit) is estimated to be
whether tax positions are probable of nor the accounting profit. The carrying
liability is provided based on the number less than its carrying amount, the carrying
being sustained in tax assessments. A amount of deferred tax assets is
of days of unutilised leave at each balance amount of the asset (or cash-generating

430 Empowering Emerging India INTEGRATED REPORT 2022-23 431

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

unit) is reduced to its recoverable amount 2.18 Gross obligation value of written put Certain lease arrangements includes the in the Statement of profit and loss as per
and the impairment loss is recognised options to Non-controlling Interest options to extend or terminate the lease contractual rental unless another systematic
in the Statement of profit and loss. (NCI) : before the end of the lease term. ROU assets basis is more representative of the time
When an impairment loss subsequently For the written put options held by the and lease liabilities includes these options pattern in which the benefit derived from the
reverses, the carrying amount of the asset Group for acquiring remaining interest in when it is reasonably certain that option leased asset is diminished. Costs including
(or a cash-generating unit) is increased to the its subsidiary, gross obligation is recognised to extend will be exercised and option to depreciation are recognised as an expense
revised estimate of its recoverable amount by debit to Other Equity for the expected terminate will not be exercised. in the Statement of profit and loss. Initial
such that the increased carrying amount amount payable in case of exercise of the put direct costs are recognised immediately in
does not exceed the carrying amount that by the NCI. The right-of-use assets are initially recognised Statement of profit and loss.
would have been determined if no impairment at cost which comprises of initial amount of
loss had been recognised for the asset (or 2.19 Leases : lease liability adjusted for any lease payments In accordance with Ind AS 116, Leases, the
cash-generating unit) in prior years. The made at or prior to the commencement date financial information has been presented in
Where the Group is the lessee -
reversal of an impairment loss is recognised of the lease plus any initial direct costs less the following manner.
in Statement of profit and loss. As a lessee, the Group’s lease asset class any lease incentives. These are subsequently
primarily consist of buildings or part thereof measured at cost less accumulated a) ROU assets and lease liabilities have
2.17 Provisions and contingent liabilities: taken on lease for office premises, certain depreciation and impairment losses, if any. been included within the line items
IT equipments and general purpose office Right-of-use assets are depreciated from the "Property, plant and equipment" and
Provisions are recognised when there is
equipments used for operating activities. The commencement date on a straight-line basis "Other financial liabilities" respectively in
a present obligation as a result of a past
Group assesses whether a contract contains over the shorter of the lease term and useful the Balance sheet;
event, and it is probable that an outflow of
a lease, at inception of a contract. A contract life of the underlying asset.
resources embodying economic benefits will
is, or contains, a lease if the contract conveys b) Interest expenses on the lease liability
be required to settle the obligation and there
the right to control the use of an identified The lease liability is initially measured at and depreciation charge for the right-
is a reliable estimate of the amount of the
asset for a period of time in exchange for amortised cost at the present value of the to-use asset have been included
obligation. Provisions are reviewed at each
consideration. To assess whether a contract future lease payments that are not paid at within the line items "Finance costs"
balance sheet date and adjusted to reflect
conveys the right to control the use of an the commencement date, discounted using and "Depreciation, amortisation
the current best estimate. If it is no longer
identified asset, the Group assesses whether: the Group's incremental average borrowing and impairment" respectively in the
probable that the outflow of resources
(i) the contract involves the use of an rate. Lease liabilities are remeasured with statement of profit or loss;
would be required to settle the obligation,
identified asset (ii) the Group has substantially a corresponding adjustment to the related
the provision is reversed. Provisions are not
all of the economic benefits from use of the right of use asset if the Group changes its c) 
Short-term lease payments and
recognised for future operating losses.
asset through the period of the lease and (iii) assessment if whether it will exercise an payments for leases of low-value assets,
the Group has the right to direct the use of extension or a termination option. where exemption as permitted under this
The amount recognised as a provision is the
the asset. standard is availed, have been recognised
best estimate of the consideration required
to settle the present obligation at the end In the Balance Sheet, ROU assets have been as expense on a straight line basis over
At the date of commencement of the lease, included in property, plant and equipment and the lease term in the statement of profit
of the reporting period, taking into account
the Group recognises a right-of-use asset Lease liabilities have been included in Other or loss.
the risks and uncertainties surrounding the
(“ROU”) and a corresponding lease liability for financial liabilities and the principal portion
obligation. Provisions are determined by
all lease arrangements in which it is a lessee, of lease payments have been classified as d) 
Cash payments for the principal
discounting the expected future cash flows
except for leases with a term of twelve financing cash flows. The Group has used a of the lease liability have been
at a pre-tax rate that reflects current market
months or less (short-term leases) and low single discount rate to a portfolio of leases presented within "financing activities"
assessments of the time value of money and
value leases. For these short-term and low with similar characteristics. in the statement of cash flows;
the risks specific to the liability.
value leases, the Group recognises the lease The disclosures as required in accordance
payments as an operating expense on a Where the Group is the lessor - with Ind AS 116, Leases, are set out
When there is a possible obligation or a present
straight-line basis over the term of the lease. under note no.43.
obligation in respect of which the likelihood of At the inception of the lease, the Group
outflow of resources is remote, no provision classifies each of its leases as either a finance
The carrying amount of lease liabilities is 2.20 Cash and cash equivalents:
is made. The disclosure of contingent liability lease or an operating lease. Whenever the
remeasured if there is a modification, a change
is made when there is a possible obligation terms of the lease transfer substantially all Cash and cash equivalents in the balance
in the lease term, a change in the lease
or present obligation that may, but probably the risks and rewards of ownership to the sheet comprise cash on hand, cheques and
payments (e.g., changes to future payments
will not, require an outflow of resources. The lessee, the contract is classified as a finance drafts on hand, balance with banks in current
resulting from a change in an index or rate
Group also discloses present obligation for lease. All other leases are classified as accounts and short-term deposits with an
used to determine such lease payments) or
which a reliable estimate cannot be made as operating leases. original maturity of three months or less,
a change in the assessment of an option to
a contingent liability. which are subject to an insignificant risk of
purchase the underlying asset.
The Group has given certain vehicles on change in value.
lease where it has substantially retained the
risks and rewards of ownership and hence 2.21 Earnings Per Share :
these are classified as operating leases. Basic earnings per share is calculated by
These assets given on operating lease are dividing the net profit or loss for the period
included in PPE. Lease income is recognised attributable to equity shareholders by the

432 Empowering Emerging India INTEGRATED REPORT 2022-23 433

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

weighted average number of equity shares Amendment Rules, 2023, applicable from 1 st Note : 3
outstanding during the period. Earnings April 2023, as below:
considered in ascertaining the Group’s Cash and cash equivalents
earnings per share is the net profit for the Ind AS 1 – Presentation of Financial Statements ₹ in crores
period after deducting preference dividends, The amendments require companies to 31st March 2023 31st March 2022
if any, and any attributable tax thereto for disclose their material accounting policies Cash on hand 45.51 54.87
the period. The weighted average number of rather than their significant accounting Cheques and drafts on hand 17.65 36.30
equity shares outstanding during the period policies. Accounting policy information, Balances with banks in current accounts 234.87 283.66
and for all periods presented is adjusted for together with other information, is material
Term deposits with original maturity up to 3 months 288.50 390.49
events, such as bonus shares, sub-division of when it can reasonably be expected to
586.53 765.32
shares etc. that have changed the number influence decisions of primary users of general
of equity shares outstanding, without a purpose financial statements. The Group
corresponding change in resources. For the does not expect this amendment to have any Note : 4
purpose of calculating diluted earnings per significant impact in its financial statements.
share, the net profit or loss for the period Bank balances other than cash and cash equivalents
attributable to equity shareholders and the Ind AS 12 – Income Taxes ₹ in crores
weighted average number of equity shares Particulars 31st March 2023 31st March 2022
outstanding during the period are adjusted The amendments clarify how companies Earmarked balances with banks -
for the effects of all dilutive potential equity account for deferred tax on transactions such
- Unclaimed dividend accounts 0.60 0.58
shares. Diluted earnings per share reflects as leases and decommissioning obligations.
Term deposits with maturity less than 12 months - 11.04 7.37
the potential dilution that could occur if The amendments narrowed the scope of the
securities or other contracts to issue equity recognition exemption in paragraphs 15 and - Free 3,119.47 3,472.58
- Under lien # 243.01 471.19
shares were exercised or converted during 24 of Ind AS 12 (recognition exemption) so
the year. that it no longer applies to transactions that, Interest accrued on Term deposits 106.26 110.57
on initial recognition, give rise to equal taxable 3,480.38 4,062.29
2.22 Dividend : and deductible temporary differences. The # Details of Term deposits - Under lien
The Group recognises a liability to make cash Group is evaluating the impact, if any, in its
distributions to equity holders when the financial statements.
₹ in crores
distribution is authorised and the distribution As at 31st March 2023 As at 31st March 2022
is no longer at the discretion of the respective Ind AS 8 – Accounting Policies, Changes in
companies. As per the corporate laws in India, Accounting Estimates and Errors Bank Bank
balances balances
a distribution is authorised when it is approved Other Other
Particulars other other
The amendments will help entities to financial financial
by the shareholders. A corresponding amount than cash
assets
Total than cash
assets
Total
is recognised directly in equity. distinguish between accounting policies and cash
(Note 9)
and cash
(Note 9)
equivalents equivalents
and accounting estimates. The definition of
(Note 4) (Note 4)
2.23 New standards or amendments to a change in accounting estimates has been
For Statutory Liquidity Ratio 100.00 100.00 135.00 100.00 235.00
the existing standards and other replaced with a definition of accounting
estimates. Under the new definition, For securitisation transactions 120.28 2.47 122.75 305.42 - 305.42
pronouncements :
accounting estimates are “monetary amounts Legal deposits 0.21 0.60 0.81 0.21 0.60 0.81
Recent pronouncements
in financial statements that are subject to For towards Constituent Subsidiary General 20.90 10.00 30.90 30.00 - 30.00
Ministry of Corporate Affairs (“MCA”) notifies measurement uncertainty”. Entities develop Ledger (CSGL) account
new standard or amendments to the accounting estimates if accounting policies Collateral deposits with banks for Aadhaar 1.62 1.62 0.56 1.00 1.56
existing standards under Companies (Indian require items in financial statements to be authentication and others & Rights Issue
Accounting Standards) Rules as issued from measured in a way that involves measurement Total 243.01 13.07 256.08 471.19 101.60 572.79
time to time. On 31 st March 2023, MCA uncertainty. The Group does not expect this
amended the Companies (Indian Accounting amendment to have any significant impact in
Standards) Rules, 2015 by issuing the its financial statements. Note : 5
Companies (Indian Accounting Standards)
Derivative financial instruments
₹ in crores
31st March 2023 31st March 2022
Notional Fair value of Notional Fair value of
amounts Assets amounts Assets
i) Currency derivatives :
Options - 645.01 26.63
Total derivative financial instruments - - 645.01 26.63

434 Empowering Emerging India INTEGRATED REPORT 2022-23 435

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Note : 6 Note : 7
Receivables Loans
₹ in crores ₹ in crores
Particulars 31st March 2023 31st March 2022 Particulars 31st March 2023 31st March 2022
Trade receivables A) Loans (at amortised cost) :
i) Secured, considered good: Retail loans 75,687.27 61,066.67
- Lease rental receivable on operating lease transactions 11.37 7.46 Small and Medium Enterprise (SME) financing 3,481.07 1,196.15
Less : Impairment loss allowance (9.19) (6.24)
Loans under housing finance business 7,199.93 7,603.45
2.18 1.22
Bills of exchange 975.61 944.33
ii) Unsecured, considered good :
- Subvention and other income receivables 96.17 63.61 Trade Advances 2,540.42 1,807.42
iii) Credit impaired : Finance lease 220.95 122.88
Trade receivable outstanding for less than six months Other loans and advances 0.11 0.17
- Subvention and other income receivables 0.80 4.37 Total (Gross) 90,105.36 72,741.07
0.80 4.37 Less : Impairment loss allowance (3,649.29) (5,081.38)
Less : Impairment loss allowance (0.80) (4.37) Total (Net) 86,456.07 67,659.69
98.35 64.83
B) i) Secured by tangible assets 85,147.11 68,884.06
There is no due by directors or other officers of the company or any firm or private company in which any director is a partner, a ii) Secured by intangible assets - -
director or a member.
iii) Covered by bank / Government guarantees 319.16 493.49
Trade Receivables aging schedule iv) Unsecured 4,639.09 3,363.52
Total (Gross) 90,105.36 72,741.07
As at 31st March 2023 Less : Impairment loss allowance (3,649.29) (5,081.38)
₹ in crores Total (Net) 86,456.07 67,659.69
Outstanding for following periods from due date of payment
C) i) Loans in India
Particulars Less than 6 months 1-2 2 - 3 More than
Total a) Public Sector - -
6 months - 1 year years years 3 years
b) Others 89,920.85 72,548.80
i) Undisputed Trade Receivables –
– considered good 91.97 3.50 0.15 1.36 - 96.98 Total (Gross) 89,920.85 72,548.80
– which have significant increase in credit risk 1.68 - - - - 1.68 Less : Impairment loss allowance (3,642.52) (5,075.15)
– credit impaired 2.57 0.67 0.60 0.25 3.28 7.37 Total (Net) - C (i) 86,278.34 67,473.65
ii) Disputed Trade Receivables – ii) Loans outside India 184.51 192.27
– considered good - - - - - - Less : Impairment loss allowance (6.77) (6.23)
– which have significant increase in credit risk 0.93 0.93 0.45 - - 2.31 Total (Net) - C (ii) 177.73 186.04
– credit impaired - - - - - -
Total (Net) - C (i+ii) 86,456.07 67,659.69
Total 97.14 5.09 1.20 1.62 3.28 108.34
Notes:
There is neither an instance where due date is not specified nor unbilled due. - There is no loan asset measured at FVOCI or FVTPL or designated at FVTPL.
Trade Receivables aging schedule - Refer note no. 51 for information related to stage-wise classification of loan assets and ECL movement.

As at 31st March 2022

₹ in crores
Outstanding for following periods from due date of payment
Particulars Less than 6 months 1-2 2 - 3 More than
Total
6 months - 1 year years years 3 years
i) Undisputed Trade Receivables –
– considered good 50.61 10.59 2.48 0.42 0.51 64.62
– which have significant increase in credit risk 0.27 - - - - 0.27
– credit impaired 1.53 4.63 0.45 0.59 3.36 10.55
ii) Disputed Trade Receivables –
– considered good - - - - - -
– which have significant increase in credit risk - - - - - -
– credit impaired - - - - - -
Total 52.41 15.22 2.93 1.01 3.87 75.44

436 Empowering Emerging India INTEGRATED REPORT 2022-23 437

 Note : 8

438
Investments

st
i) Investments accounted using Equity Method
₹ in crores
31st Mar 2023 31st Mar 2022
Particulars
At cost At cost
Equity instruments of associate - Financial
49% Ownership in Mahindra Finance USA, LLC 725.20 612.43 as at 31 March 2023
(Joint venture entity with De Lage Landen Financial Services INC. in United States of America)
Equity instruments of joint venture -

Empowering Emerging India

Mahindra Manulife Investment Management Private Ltd. 226.37 242.07
Mahindra Manulife Trustee Private Ltd. 0.97 0.90
Total - Gross (A) 952.54 855.40
i) Investments outside India 725.20 612.43
ii) Investments in India 227.34 242.97
Total - Gross 952.54 855.40
Less : Allowance for Impairment loss (B) - -
Total - Net C (A - B ) 952.54 855.40
Statements

ii) Other investments

₹ in crores
31st March 2023 31st March 2022

At Fair Value At Fair Value

Particulars Amortised Others Amortised Others
Through Total Through Total
cost Through (at cost) cost Through (at cost)
profit or Sub-total profit or Sub-total
OCI OCI
loss loss
Units of mutual funds - 220.87 220.87 - 220.87 - - 1,387.01 1,387.01 - 1,387.01
Government securities 1,274.51 4,886.53 - 4,886.53 6,161.04 1,312.06 4,485.96 4,485.96 5,798.02
Debt securities -
i) Investment in Bonds 25.97 - - - - 25.97 26.10 - - - - 26.10
ii) Investments in Pass Through Certificates 123.42 - - - - 123.42 177.52 - - - - 177.52
under securitisation transactions
iii) Commercial Papers - 94.12 94.12 - 94.12 - - - - - -
iv) Certificate of deposits with banks - - 1,973.02 1,973.02 - 1,973.02 - - - - -
v) Investment in Bonds of Food Corporation - 351.43 - 351.43 - 351.43 260.45 - 260.45 - 260.45
of India and NCDs of NABARD
vi) Non-Convertible Debentures of Jyoti 1.59 1.59 1.59 1.59 1.59 1.59
Structures Limited (Assets acquired in
Notes forming part of the Consolidated

satisfaction of debt)
Equity instruments of other entities -
i) Equity investment in Smartshift Logistics - 35.25 - 35.25 - 35.25 - 35.25 - 35.25 - 35.25
Solutions Private Limited (formerly known as
Orizonte Business Solutions Limited which
was later acquired by Resfeber Labs Private
Limited)

ii) Other investments

₹ in crores
st

31st March 2023 31st March 2022

At Fair Value At Fair Value

Particulars Amortised Others Amortised Others
Through Total Through Total
cost Through (at cost) cost Through (at cost)
profit or Sub-total profit or Sub-total
OCI OCI
loss loss
Financial
Corporate

as at 31 March 2023

ii) New Democratic Electoral Trust - - - - 0.02 0.02 - - 0.02 0.02

iii) Equity shares of Jyoti Structures Limited - 0.06 0.06 0.06 0.24 0.24 0.24
Overview & IR

(Assets acquired in satisfaction of debt)

Others -
i) Compulsorily Convertible Cumulative 7.15 - 7.15 - 7.15 - 7.15 - 7.15 - 7.15
Participating Preference Shares (CCCPS) in
Report
Board’s

Smartshift Logistics Solutions Private Limited

ii) Interest accrued on Government securities 22.33 85.99 85.99 108.32 22.42 77.64 - 77.64 - 100.06
iii) Interest accrued on Bonds 0.06 8.86 8.86 8.92 0.06 6.79 - 6.79 - 6.85
iv) Interest accrued on Pass Through 0.39 - 0.39 0.08 - - - - 0.08
Certificates under securitisation transactions

Total - Gross (A) 1,446.68 5,376.80 2,288.07 7,664.87 0.02 9,111.57 1,538.24 4,874.83 1,387.25 6,262.08 0.02 7,800.34
Analysis

i) Investments outside India - - - - - - - - - - - -

Statements
Management

ii) Investments in India 1,446.68 5,376.80 2,288.07 7,664.87 0.02 9,111.57 1,538.24 4,874.83 1,387.25 6,262.08 0.02 7,800.34
Discussion and

Total - Gross 1,446.68 5,376.80 2,288.07 7,664.87 0.02 9,111.57 1,538.24 4,874.83 1,387.25 6,262.08 0.02 7,800.34
Less : Allowance for Impairment loss ( B ) 0.98 - - - - 0.98 1.61 - - - - 1.61
Total - Net C (A - B ) 1,445.70 5,376.80 2,288.07 7,664.87 0.02 9,110.59 1,536.63 4,874.83 1,387.25 6,262.08 0.02 7,798.73
Report on
Corporate
Governance
Report
Business
Responsibility
& Sustainability
Financial
Standalone

Statements

Notes forming part of the Consolidated

C

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

439
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Note : 9 (ii) Income tax recognised in Statement of profit and loss

₹ in crores
Other financial assets
Particulars 31st March 2023 31st March 2022
₹ in crores
Particulars 31st March 2023 31st March 2022 In respect of current year origination and reversal of temporary differences 234.51 (3.33)

Security Deposits 73.04 38.16 In respect of rate change (Re-measurement of opening deferred tax assets due to (0.10) (8.97)
income tax rate change)
Term deposits with banks (remaining maturity more than 12 months)
234.41 (12.30)
- Free 1,385.53 48.29
Total Income tax recognised in Statement of profit and loss 732.56 399.08
- Under lien (refer note 4) 13.07 101.60
Interest accrued on Term deposits 9.81 25.01
Others# 182.47 57.87
(iii) Income tax recognised in Other Comprehensive Income
1,663.92 270.93
₹ in crores
# includes receivables related to insurance claims, lease re-imbursements and online payments Particulars 31st March 2023 31st March 2022
Income tax related to items recognised in Other Comprehensive Income during
Note : 10 the year :
Remeasurement of defined employee benefits 4.51 1.04
Deferred tax assets (net) and Tax expense
Net gain / (loss) on equity instruments through OCI - (6.54)
(i) Deferred tax assets (net) Net gain / (loss) on debt instruments through OCI 22.84 0.04
₹ in crores Effective portion of gains and loss on designated portion of hedging instruments in a 1.60 -
Balance (Charge)
Acquired Balance
(Charge)
Acquired Balance cash flow hedge
in business Charge as at in business Charge as at
as at / credit to / credit to
Particulars
1st April profit and
combination / (credit) 31st
profit and
combination / (credit) 31st Total Income tax recognised in Other Comprehensive Income 28.95 (5.46)
& Translation to OCI March & Translation to OCI March
2021 loss loss
differences 2022 differences 2023
Tax effect of items constituting
deferred tax liabilities :
- Share based payments (0.40) - - - (0.40) (4.35) - - (4.75)
(iv) Reconciliation of estimated Income tax expense at tax rate to income tax
expense reported in the Statement of profit and loss is as follows:
- Application of EIR on financial (72.07) (4.73) - - (76.80) 6.59 - - (70.21)
assets & liabilities ₹ in crores
- FVTPL financial asset (13.10) (3.14) - (16.24) 13.97 (0.49) (2.76) As at As at
Particulars
31st March 2023 31st March 2022
- Others # (105.54) (20.24) (1.09) 0.21 (126.66) (0.05) - - (126.71)
Profit before tax 2,760.44 1,504.40
(191.11) (28.11) (1.09) 0.21 (220.10) 16.16 - (0.49) (204.43)
Tax effect of items constituting
Applicable income tax rate 25.168% 25.168%
deferred tax assets : Expected income tax expense 694.75 378.63
- Provision for employee benefits 25.52 0.61 0.16 1.04 27.33 1.59 - 4.53 33.45 Tax effect of adjustments to reconcile expected Income tax expense at tax rate
- Derivatives 32.79 19.45 - - 52.24 (0.28) - - 51.96 to reported income tax expense:
- Allowance for ECL 1,001.17 (69.42) 0.49 - 932.24 (320.21) - 22.35 634.38 Effect of income exempt from tax (1.04) -
- Provision on standard assets 62.91 90.01 - - 152.92 0.61 - - 153.53 Effect of expenses / provisions not deductible in determining taxable profit 32.19 12.92
- Other provisions 13.60 (0.24) - (6.72) 6.64 67.72 (0.01) 2.56 76.91 Effect of tax incentives and concessions (2.83) (2.21)
1,135.99 40.41 0.65 (5.68) 1,171.37 (250.57) (0.01) 29.44 950.23 Effect of differential tax rate 0.88 0.20
Net deferred tax assets 944.88 12.30 (0.44) (5.47) 951.27 (234.41) (0.01) 28.95 745.80
Adjustment related to tax of prior years 2.46 14.19
# includes deferred tax on account of securitisation transactions, fair valuation of Govt. securities / bonds and timing differences Tax not recognised 3.38 (2.29)
arising on PPE. Others 2.77 (2.36)
Reported income tax expense 732.56 399.08
(ii) Income tax recognised in Statement of profit and loss
₹ in crores
Particulars 31st March 2023 31st March 2022
Current tax:
In respect of current year 495.68 388.23
In respect of prior years 2.47 23.15
498.15 411.38
Deferred tax:

440 Empowering Emerging India INTEGRATED REPORT 2022-23 441

 Note : 11

442
Property, plant and equipments
₹ in crores

st
Computers Right-Of-
Furniture Vehicles Plant &
Land Building - and Data Office Use Assets
Particulars Buildings# and Vehicles under Machineries Total
(Freehold) Leasehold processing equipments (Leasehold
fixtures lease under lease
units premises)
GROSS CARRYING AMOUNT
Balance as at 1st April 2021 0.81 1.32 2.15 127.97 104.03 106.15 104.91 74.14 0.19 340.21 861.88
Financial
as at 31 March 2023
Additions during the year - - - 46.99 4.43 11.02 28.36 76.14 - 60.38 227.32
Additions through business - - - 0.24 0.95 0.64 0.82 0.18 - 2.06 4.89

Empowering Emerging India

combinations
Disposals / deductions during the year - - - 17.10 4.17 19.95 17.51 3.32 - 52.82 114.87
Balance as at 31st March 2022 0.81 1.32 2.15 158.10 105.24 97.86 116.58 147.14 0.19 349.83 979.22
Balance as at 1st April 2022 0.81 1.32 2.15 158.10 105.24 97.86 116.58 147.14 0.19 349.83 979.22
Additions during the year - - - 43.49 13.16 15.67 48.12 187.06 - 317.81 625.31
Foreign exchange translation differences - - - (0.01) (0.08) (0.04) (0.03) - - (0.23) (0.39)
Additions through business - - - - - - - - - - -
combinations
Disposals / deductions during the year - - - 34.42 5.54 14.57 22.84 10.38 - 34.65 122.40
Balance as at 31st March 2023 0.81 1.32 2.15 167.16 112.78 98.92 141.83 323.82 0.19 632.76 1,481.74
Statements

ACCUMULATED DEPRECIATION AND

IMPAIRMENT LOSSES
Balance as at 1st April 2021 - 0.32 0.60 109.44 77.54 87.02 72.14 13.95 0.02 121.61 482.64
Additions during the year - 0.02 0.25 17.86 6.82 10.53 17.19 25.58 0.11 60.29 138.65
Foreign exchange translation differences - - - 0.03 0.14 0.08 0.02 - - 0.39 0.66
Disposals / deductions during the year - - - 17.09 4.14 19.79 15.94 0.59 - 46.25 103.80
Balance as at 31st March 2022 - 0.34 0.85 110.24 80.36 77.84 73.41 38.94 0.13 136.04 518.15
Balance as at 1st April 2022 - 0.34 0.85 110.24 80.36 77.84 73.41 38.94 0.13 136.04 518.15
Additions during the year - 0.02 0.50 30.83 8.70 10.94 22.17 50.20 - 89.58 212.94
Foreign exchange translation differences - - - (0.01) - (0.03) - - (0.06) (0.06) (0.16)
Disposals / deductions during the year - - - 34.35 5.10 14.30 19.85 2.35 - 28.34 104.29
Balance as at 31st March 2023 - 0.36 1.35 106.71 83.96 74.45 75.73 86.79 0.07 197.22 626.64
NET CARRYING AMOUNT
As at 31st March 2022 0.81 0.98 1.30 47.86 24.88 20.02 43.18 108.20 0.06 213.79 461.07
As at 31st March 2023 0.81 0.96 0.80 60.45 28.82 24.47 66.11 237.03 0.12 435.54 855.10
# Secured Non-convertible debentures (NCDs) have an exclusive pari-passu charges on Buildings.
There is no immovable property where title deed of such immovable property is not held in name of the Group or jointly held with others.
Notes forming part of the Consolidated

The Group has not revalued its Property, Plant and Equipment (including Right-of-Use Assets).

As at

Total
Total

Ageing
Ageing
st

31st
Particulars
Note : 12
Financial

As at 31st March 2022

March 2023
Corporate

Additions during the year

Additions during the year
Additions during the year
Additions during the year
as at 31 March 2023

Deductions during the year

Deductions during the year
Deductions during the year
Deductions during the year

NET CARRYING AMOUNT

As at 31st March 2022:

As at 31st March 2023:
Overview & IR

Balance as at 1st April 2021

Balance as at 1st April 2021
GROSS CARRYING AMOUNT

Balance as at 1st April 2022

Balance as at 1st April 2022
Other Intangible assets

Balance as at 31st March 2022

Balance as at 31st March 2022

Balance as at 31st March 2023

Balance as at 31st March 2023

Intangible Assets Under Development

Intangible Assets Under Development
Report
Board’s

Foreign exchange translation differences

Foreign exchange translation differences
Foreign exchange translation differences
Additions through business combinations
Additions through business combinations
Analysis

Statements
Management
Discussion and

Less than 1 year

Less than 1 year

0.85
0.85
0.79
0.79
ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES

Intangible Assets Under Development Aging schedule

Report on
Corporate
Governance

1-2 years
1-2 years

0.83
0.83
1.43
1.43
The Group has not revalued its Intangible Assets.
Report
Business

Amount for a period of

Amount for a period of
Responsibility
& Sustainability

-
-
-
-
Financial
Standalone

Statements

Notes forming part of the Consolidated

C

2-3 years More than 3 years

2-3 years More than 3 years

0.42
0.42
0.42
0.42

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

Total
₹ in crores
Total
₹ in crores
15.50
10.81
111.28
13.02
98.26
98.26
0.08
0.05
12.63
85.66
126.78
17.73
109.07
109.07
0.07
0.52
3.16
105.46
Software
Computer
₹ in crores

-
-
-
-

2.10
2.10
2.64
2.64
(0.02)

443
 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Note : 13 Note : 15
Other non-financial assets Payables
₹ in crores ₹ in crores
31st March 31st March 31st March 31st March
Particulars Particulars
2023 2022 2023 2022
Capital advances 224.45 138.42 I) Trade Payables
Prepaid expenses 73.92 68.00 i) total outstanding dues of micro enterprises and small enterprises 0.04 0.28
Balances with Government Authorities 228.02 120.62 ii) total outstanding dues of creditors other than micro enterprises and small 1,246.00 1,112.92
enterprises
Unamortised placement and arrangement fees paid on borrowing instruments 0.01 1.01
II) Other Payables
Insurance advances 11.19 6.45 i) total outstanding dues of micro enterprises and small enterprises 2.62 3.53
Other advances 11.26 15.43 ii) total outstanding dues of creditors other than micro enterprises and small 37.35 47.10
548.85 349.93 enterprises
1,286.01 1,163.83

Note : 14 Micro, Small and Medium Enterprises:

Based on and to the extent of the information received by the Company from the suppliers during the year
Derivative financial instruments ₹ in crores regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
As at 31 st March 2023 As at 31st March 2022 Act), the total outstanding dues of Micro and Small enterprises, which are outstanding for more than the
Particulars Notional Fair value of Notional Fair value of stipulated period and other disclosures as per the Micro, Small and Medium Enterprises Development Act,
amounts Liabilities amounts Liabilities 2006 (hereinafter referred to as “the MSMED Act”) are given below :
Currency / interest rate derivatives Unhedged:
Forward contracts - - 549.99 36.03 Payables
Options 1,063.50 144.83 1,600.19 146.19 ₹ in crores
Total (A) 1,063.50 144.83 2,150.18 182.22 Particulars
31st March 31st March
2023 2022
Currency / interest rate derivatives Hedged:
a) Dues remaining unpaid to any supplier at the year end
Forward contracts 839.91 16.92 - -
- Principal 2.65 3.81
Options 827.70 18.95 - - - Interest on the above - -
Total (B) 1,667.61 35.87 - - b) Interest paid in terms of Section 16 of the MSMED Act along with the amount of
Total derivative financial instruments (A+B) 2,731.11 180.70 2,150.18 182.22 payment made to the supplier beyond the appointed day during the year
- Principal paid beyond the appointed date 12.03 1.69
- Interest paid in terms of Section 16 of the MSMED Act 0.21 0.02
c) Amount of interest due and payable for the period of delay on payments made - -
Movement in Cash Flow Hedge Reserve
beyond the appointed day during the year
₹ in crores
d) Amount of interest accrued and remaining unpaid - -
Particulars 31st March 2023 31st March 2022
e) Further interest due and payable even in the succeeding years, until such date - -
Balance at the beginning of the year - - when the interest due as above are actually paid to the small enterprises
Recognised on Cash Flow Hedge Reserve (6.34) -
Reclassified to profit or loss - -
Trade Payables aging schedule
Income Tax relating to gain / loss on the OCI 1.60 -
As at 31st March 2023:
(4.74) -
₹ in crores
Outstanding for following periods from due date of payment
Ageing Total
Less than 1 year 1 - 2 years 2 - 3 years More than 3 years

i) MSME 2.66 - - - 2.66

ii) Others 1,212.05 18.03 8.20 45.07 1,283.35
Total 1,214.70 18.03 8.20 45.07 1,286.01
Disputed dues –
– MSME - - - - -
– Others - - - 0.59 0.59

There is neither an instance where due date is not specified nor there is any unbilled due.

444 Empowering Emerging India INTEGRATED REPORT 2022-23 445

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

As at 31st March 2022: Details of Non-convertible debentures (Secured) : ₹ in crores

₹ in crores As at 31st March 2023 As at 31st March 2022
Outstanding for following periods from due date of payment From the Balance Sheet date Interest Rate Interest Rate
Ageing Total Amount Amount
Range Range
Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Maturing between 3 years to 5 years 6.35% 56.25 6.35% 168.75
i) MSME 3.81 - - - 3.81
Sub-total at face value 225.00 225.00
ii) Others 1,042.83 23.73 31.50 61.96 1,160.02
Total 1,046.64 23.73 31.50 61.96 1,163.83 Sub-total at face value (A) 19,653.05 16,149.00
Disputed dues – B) Issued on retail public issue -
– MSME - - - - - Repayable on maturity :
– Others - - - 0.59 0.59 Maturing within 1 year 9.10%-9.15% 535.56 9.00%-9.05% 405.41

There is neither an instance where due date is not specified nor there is any unbilled due. Maturing between 1 year to 3 years - 9.10%-9.15% 535.56
Maturing between 3 years to 5 years 9.20%-9.30% 869.15 9.20%-9.30% 869.15
Sub-total at face value (B) 1,404.71 1,810.12
Note : 16 21,057.76 17,959.12
Total at face value (A+B)
Debt Securities Less: Unamortised discounting charges 72.13 31.03
₹ in crores Total amortised cost 20,985.63 17,928.09
31st March 2023 31st March 2022
At Amortised cost
Non-convertible debentures (Secured) 20,985.63 17,928.09
Non-convertible debentures (Unsecured) 2,641.36 2,822.72 Details of Non-convertible debentures (Unsecured) - : ₹ in crores
As at 31st March 2023 As at 31st March 2022
Commercial Papers (Unsecured) 3,936.00 496.56
From the Balance Sheet date Interest Rate Interest Rate
Rupee Denominated Secured Bonds overseas (Masala Bonds) 349.80 349.78 Range
Amount
Range
Amount
Total 27,912.79 21,597.15
Repayable on maturity :
Debt securities in India 27,562.99 21,247.37
Maturing within 1 year 7.55%-8.51% 850.00 6.85%-7.35% 385
Debt securities outside India 349.80 349.78
Maturing between 1 year to 3 years 6.70%-8.14% 800.00 5.61%-7.55% 1,650.00
Total 27,912.79 21,597.15
Maturing beyond 5 years 8.53% 1,000.00 8.53% 800.00
Note: There is no debt security measured at FVTPL or designated at FVTPL.
Total at face value 2,650.00 2,835.00
The Secured Non-convertible debentures are secured by paripassu charges on office premises, PPE, book Less: Unamortised discounting charges 8.64 12.28
debts and exclusive charges on receivables under loan contracts to the extent of 100% of outstanding
Total amortised cost 2,641.36 2,822.72
secured debentures.

Details of Non-convertible debentures (Secured) : ₹ in crores

Details of Commercial Papers (Unsecured): ₹ in crores
As at 31st March 2023 As at 31st March 2022
As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Interest Rate Interest Rate
Amount Amount From the Balance Sheet date Interest Rate Interest Rate
Range Range Amount Amount
Range Range
A) Issued on private placement basis (wholesale) -
Repayable on maturity :
Repayable on maturity :
Maturing within 1 year 5.50%-8.26% 4,075.00 4.70% 500.00
Maturing within 1 year 5.25%-9.25% 4,664.70 4.80%-8.95% 4,047.90
Total at face value 4,075.00 500.00
Maturing between 1 year to 3 years 6.25%-9.00% 8,778.00 4.93%-9.25% 7,078.00
Less: Unamortised discounting charges 139.00 3.44
Maturing between 3 years to 5 years 7.90%-8.25% 762.25 6.25%-9.00% 1,675.00
Total amortised cost 3,936.00 496.56
Maturing beyond 5 years 7.45%-9.18% 5,223.10 7.75%-9.18% 3,123.10
Sub-total at face value 19,428.05 15,924.00
Repayable in Half yearly instalments : Rupee Denominated Secured Bonds overseas (Masala Bonds) ₹ in crores
Maturing within 1 year
As at 31st March 2023 As at 31st March 2022
Maturing between 1 year to 3 years 6.35% 168.75 6.35% 56.25 From the Balance Sheet date Interest Rate Interest Rate
Amount Amount
Range Range
Repayable on maturity :

446 Empowering Emerging India INTEGRATED REPORT 2022-23 447

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Rupee Denominated Secured Bonds overseas (Masala Bonds) ₹ in crores Details of term loans from banks (Secured) ₹ in crores
As at 31st March 2023 As at 31st March 2022 As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Interest Rate Interest Rate From the Balance Sheet date Interest Rate Interest Rate
Amount Amount Amount Amount
Range Range Range Range
Maturing between 1 year to 3 years 7.40% 350.00 7.40% 350.00 1) Repayable on maturity :
Total at face value 350.00 350.00 Maturing within 1 year 5.98%-9.24% 3,333.50 4.00%-7.00% 1,131.00
Less: Unamortised discounting charges 0.20 0.22 Maturing between 1 year to 3 years - 5.25%-7.55% 1,300.00
Total amortised cost 349.80 349.78 Maturing between 3 years to 5 years 8.77%-9.00% 150.00 7.00% 150.00
Total for repayable on maturity 3,483.50 2,581.00
2) Repayable in instalments :
Note : 17 i) Quarterly -
Maturing within 1 year 5.15%-9.94% 4,993.31 4.50%- 8.10% 3,684.19
Borrowings (Other than Debt Securities)
₹ in crores Maturing between 1 year to 3 years 5.15%-9.94% 7,006.52 4.50%-6.95% 3,977.63
31st March 31st March Maturing between 3 years to 5 years 5.75%-9.94% 2,008.09 4.50%-6.30% 547.43
Particulars
2023 2022
Maturing beyond 5 years 8.80%-9.94% 17.86 6.30%-6.86% 53.57
At Amortised cost
Sub-Total 14,025.78 8,262.82
a) Term loans
i) Secured - ii) Half yearly -

- from banks 33,390.78 17,617.70 Maturing within 1 year 6.25%-10.50% 3,301.55 4.47%-10.50% 1,481.99
- from banks in foreign currency 31.02 42.29 Maturing between 1 year to 3 years 6.25%-8.40% 5,504.12 4.47%-10.50% 3,063.58
- External Commercial Borrowings 2,550.71 2,177.52 Maturing beyond 3 years to 5 years 7.45%-8.40% 2,949.03 4.47%-4.90% 549.13
- Associated liabilities in respect of securitisation transactions 6,733.26 8,111.81 Sub-Total 11,754.70 5,094.70
- from other parties (National Housing Bank) 111.25 175.25 iii) Yearly -
ii) Unsecured -
Maturing within 1 year 7.35%-9.05% 822.50 5.40%-9.05% 552.50
- from banks 85.00 85.00
Maturing between 1 year to 3 years 7.49%-8.72% 2,170.42 4.46%-9.05% 821.25
- from other parties 150.01 -
Maturing between 3 years to 5 years 8.25%-8.72% 1,133.75 4.46%-7.35% 305.42
b) Loans from related parties
Unsecured - Sub-Total 4,126.67 1,679.17

- Inter-corporate deposits (ICDs) 430.00 434.26 Total for repayable in instalments 29,907.14 15,036.68
c) Loans repayable on demand Total (1+2) (As per contractual terms) 33,390.64 17,617.68
Secured - Less: Unamortised Finance Cost (0.14) (0.02)
- Cash credit facilities with banks 169.97 - Total Amortised Cost 33,390.78 17,617.70
d) Other loans and advances
Unsecured -
- Inter-corporate deposits (ICDs) other than related parties 500.62 -
Details of Secured term loans from banks in foreign currency (LKR) ₹ in crores
- Loans (other than ICD) 1.78 8.26 As at 31st March 2023 As at 31st March 2022
Total 44,154.40 28,652.09 From the Balance Sheet date Interest Rate Interest Rate
Amount Amount
Range Range
Borrowings in India 41,570.89 26,424.02
Repayable on maturity :
Borrowings outside India 2,583.51 2,228.07
Maturing within 1 year 21.00%-26.71% 26.11 1.30%-3.50% 36.55
Total 44,154.40 28,652.09
Note: There is no Borrowing designated at FVTPL. Maturing between 1 year to 3 years 26.21%-26.71% 4.91 2.71%-2.83% 4.36
Maturing beyond 3 years to 5 years - 2.58%-2.81% 1.38
The secured term loans are secured by exclusive charges on receivables under loan contracts and book debts
Total 31.02 42.29
to the extent of 100% of outstanding secured loans.
Less: Unamortised Finance Cost - -
The borrowings have not been guaranteed by directors or others. Also the Group has not defaulted in repayment 31.02 42.29
Total Amortised Cost
of principal and interest.

448 Empowering Emerging India INTEGRATED REPORT 2022-23 449

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Details of External Commercial Borrowings (USD & Euro) ₹ in crores Details of Unsecured term loans from others ₹ in crores
As at 31st March 2023 As at 31st March 2022 As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Interest Rate Interest Rate From the Balance Sheet date Interest Rate Interest Rate
Amount Amount Amount Amount
Range Range Range Range
Maturing within 1 year 6.91% 309.00 8.15%-8.36% 1,250.82 Repayable on maturity :
Maturing between 1 year to 3 years 6.61%-8.11% 2,251.17 6.61%-6.91% 721.87 Maturing between 1 year to 3 years 8.10% 150.00 -
Maturing beyond 3 years to 5 years - 6.61% 211.58 Total 150.00 -
2,560.17 2,184.27 Less: Unamortised Finance Cost (0.01) -
Less: Unamortised Finance Cost 9.46 6.75 Total Amortised Cost 150.01 -
Total 2,550.71 2,177.52

Details of Loans from related parties & Other Parties (Unsecured) - Inter- ₹ in crores
Details of associated liabilities related to Securitisation transactions ₹ in crores
corporate deposits (ICDs)
As at 31st March 2023 As at 31st March 2022
As at 31st March 2023 As at 31st March 2022 From the Balance Sheet date
Inter-corporate deposits (ICDs) (Related Parties) Interest Rate Interest Rate
From the Balance Sheet date Interest Rate Interest Rate Amount Amount
Amount Amount Range Range
Range Range
Repayable on maturity :
Maturing within 1 year 3.70%-10.77% 3,480.33 3.70%-10.77% 4,058.69
Maturing within 1 year 5.40%-7.85% 407.50 5.40%-7.00% 434.26
Maturing between 1 year to 3 years 3.70%-10.84% 2,923.76 3.70%-10.84% 3,696.85 Maturing between 1 year to 3 years 6.25% 22.50 -
Maturing between 3 years to 5 years 3.70%-4.76% 329.41 3.70%-4.76% 356.45 Total 430.00 434.26
Maturing beyond 5 years 4.76% - 4.76% 0.11 Less: Unamortised Finance Cost - -
6,733.49 8,112.10 Total Amortised Cost 430.00 434.26

0.23 0.29 Inter-corporate deposits (ICDs) (Other Than

Less: Unamortised Finance Cost
Related Parties)
Total 6,733.26 8,111.81
Repayable on maturity :
Secured by exclusive charge on receivables under loan contracts and book debts to the extent of 100% of Maturing within 1 year 6.40%-7.80% 500.62 -
outstanding secured loans. 500.62 -

Details of Secured term loans from Other parties (National Housing Bank) ₹ in crores
Details of Loans repayable on demand (Secured) - Cash credit facilities with banks ₹ in crores
As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Interest Rate Interest Rate As at 31st March 2023 As at 31st March 2022
Amount Amount From the Balance Sheet date
Range Range Interest Rate Interest Rate
Amount Amount
Repayable in instalments: Range Range

Quarterly - Repayable on maturity :

Maturing within 1 year 8.65% 48.00 7.40% 48.00 Maturing within 1 year 8.45% 169.97 -
Maturing between 1 year to 3 years 8.65% 63.25 7.40% 127.25
Total 169.97 -
Total 111.25 175.25
Less: Unamortised Finance Cost - -
Less: Unamortised Finance Cost - -
Total Amortised Cost 111.25 175.25 Total Amortised Cost 169.97 -

Details of Unsecured term loans from banks ₹ in crores Details of Unsecured Loans other than Inter-corporate deposits (ICDs) : ₹ in crores
As at 31st March 2023 As at 31st March 2022
As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Interest Rate Interest Rate
Amount Amount From the Balance Sheet date Interest Rate
Range Range Interest Rate Range Amount Amount
Range
Repayable on maturity :
Repayable on maturity :
Maturing within 1 year 8.05% 85.00 4.98% 85.00
Maturing within 1 year 21.00%-27.21% 1.78 5.50%-11.97% 8.26
Total 85.00 85.00
Total 1.78 8.26
Less: Unamortised Finance Cost - -
Less: Unamortised Finance Cost - -
Total Amortised Cost 85.00 85.00
1.78 8.26

450 Empowering Emerging India INTEGRATED REPORT 2022-23 451

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Note : 18
Details of Subordinated liabilities (at Amortised cost) - Unsecured subordinated ₹ in crores
Deposits redeemable non-convertible debentures
₹ in crores As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date 31st March 2023 31st March 2022 From the Balance Sheet date Interest Rate Interest Rate
Amount Amount
Range Range
At amortised cost
Deposits (Unsecured) Maturing beyond 5 years 7.35%-9.40% 697.90 7.90%-9.40% 402.90

- Public deposits 5,458.74 8,286.26 Sub-total at face value (A) 1,492.70 1,182.70
Total 5,458.74 8,286.26 B) Issued on retail public issue -
Note: There is no other deposit measured at FVTPL or designated at FVTPL. Repayable on maturity :
Maturing within 1 year 8.44%-8.80% 12.34 - -
Maturing between 1 year to 3 years 7.75%-7.85% 59.32 7.75%-8.80% 71.66
Details of Deposits (Unsecured) - Public deposits : ₹ in crores
Maturing between 3 years to 5 years 7.90%-9.00% 1,380.25 8.53%-9.00% 933.01
As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date Maturing beyond 5 years 7.95%-9.50% 980.84 7.90%-9.50% 1,428.08
Interest Rate Interest Rate
Amount Amount
Range Range Sub-total at face value (B) 2,432.75 2,432.75
Repayable on maturity : Total at face value (A+B) 3,925.45 3,615.45
Maturing within 1 year 4.95%-27.50% 1,890.92 4.95%-12.84% 4,727.12 Less: Unamortised discounting charges 22.82 25.32
Maturing between 1 year to 3 years 5.65%-25.50% 3,145.28 5.30%-13.03% 3,146.05 Total amortised cost 3,902.63 3,590.13
Maturing beyond 3 years 5.90%-25.00% 439.77 5.90%-11.65% 433.96
The respective businesses in the group has used the borrowings from banks and financial institutions for the
Total at face value 5,475.97 8,307.13
specific purpose for which it was taken.
Less: Unamortised discounting charges 17.23 20.87
Total amortised cost 5,458.74 8,286.26 The Group has not been declared as wilful defaulter by any bank or financial Institution or consortium thereof,
in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

Note : 19 Note : 20
Subordinated liabilities Other financial liabilities
₹ in crores ₹ in crores
From the Balance Sheet date 31st March 2023 31st March 2022 From the Balance Sheet date 31st March 2023 31st March 2022
At Amortised cost Interest accrued but not due on borrowings 1,902.39 2,035.92
Subordinated redeemable non-convertible debentures - private placement 1,489.23 1,179.36 Unclaimed dividends# 0.60 0.58
Subordinated redeemable non-convertible debentures - retail public issue 2,413.40 2,410.77 Unclaimed matured deposits and interest accrued thereon# 4.88 11.23
Total 3,902.63 3,590.13 Deposits / advances received against loan agreements 88.79 89.54
Subordinated liabilities in India 3,902.63 3,590.13 Insurance premium payable 16.90 18.45
Subordinated liabilities outside India - - Salary, Bonus and performance payable 47.49 48.15
Total 3,902.63 3,590.13 Provision for expenses 189.54 136.50
Note: There is no Subordinated liability measured at FVTPL or designated at FVTPL. Gross obligation at fair value to acquire non-controlling interest 206.39 265.80
Lease liabilities (refer note 43) 481.64 239.70
Others 26.91 28.96
Details of Subordinated liabilities (at Amortised cost) - Unsecured subordinated ₹ in crores Total 2,965.53 2,874.83
redeemable non-convertible debentures
# There are no amounts due for transfer to the Investor Education and Protection Fund under Section 125 of Companies Act, 2013
As at 31st March 2023 As at 31st March 2022 as at the year end.
From the Balance Sheet date Interest Rate Interest Rate
Amount Amount
Range Range
A) Issued on private placement basis -
Repayable on maturity :
Maturing within 1 year 9.50%-9.70% 127.80 9.80%-10.15% 70.00
Maturing between 1 year to 3 years 8.40%-9.60% 460.00 8.40%-9.70% 352.80
Maturing between 3 years to 5 years 8.40%-9.10% 207.00 8.40%-9.50% 357.00

452 Empowering Emerging India INTEGRATED REPORT 2022-23 453

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Note : 21
₹ in crores
Provisions As at 31st March 2023 As at 31st March 2022
From the Balance Sheet date
₹ in crores No. of shares ₹ in crore No. of shares ₹ in crore
From the Balance Sheet date 31st March 2023 31st March 2022
Less: Shares issued to ESOS Trust but not yet 19,31,449 0.39 25,74,163 0.51
Provision for employee benefits allotted to employees
- Gratuity (refer note 38) 32.45 47.50 Adjusted Issued, Subscribed and paid-up Share 1,23,35,98,471 246.72 1,23,29,55,757 246.60
- Leave encashment 98.76 93.81 capital
- Bonus, incentives and performance pay 174.33 130.99 b) Number of equity shares held by holding
Provision for loan commitment 3.80 3.66 company or ultimate holding company
Total 309.34 275.96 including shares held by its subsidiaries /
associates:
Holding company : Mahindra & Mahindra Limited 64,43,99,987 128.88 64,43,99,987 128.88
Note : 22
Percentage of holding (%) 52.16% 52.16%
Other non-financial liabilities c) Shareholders holding more than 5 percent of
₹ in crores the aggregate shares:
From the Balance Sheet date 31st March 2023 31st March 2022
Mahindra & Mahindra Limited 64,43,99,987 128.88 64,43,99,987 128.88
Deferred subvention income 22.49 12.81
Percentage of holding (%) 52.16% 52.16%
Statutory dues and taxes payable 109.98 104.42
Others 6.57 3.58 d) Terms / rights attached to equity shares :
Total 139.04 120.81 The Company has only one class of equity shares having a par value of ₹2/- per share. Each holder of equity
shares is entitled to one vote per share. The dividend proposed by the board of directors and approved
by the shareholders in the annual general meeting is paid in Indian rupees. In the event of liquidation of
Note : 23 the Company, the holders of equity shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
Equity Share Capital shares held by the shareholders.
₹ in crores
From the Balance Sheet date 31st March 2023 31st March 2022 e) Shareholding of Promoters
Authorised:
250,00,00,000 (31st March 2022: 250,00,00,000) Equity shares of ₹2/- each 500.00 140.00 ₹ in crores
50,00,000 (31st March 2022: 50,00,000) Redeemable preference shares of ₹100/- 50.00 50.00 Shares held by promoters as at Shares held by promoters as at
each 31st March 2023 31st March 2022
From the Balance Sheet date % Change % Change
Issued, Subscribed and paid-up: % of total % of total
No. of Shares during the No. of Shares during the
123,55,29,920 (31st March 2022: 123,55,29,920) Equity shares of ₹2/- each fully paid 247.11 247.11 shares shares
year year
up
Mahindra & Mahindra Limited 64,43,99,987 52.16% - 64,43,99,987 52.16% -
Less : 19,31,449 (31st March 2022: 25,74,163) Equity shares of ₹2/- each fully paid up 0.39 0.51
issued to ESOS Trust but not yet allotted to employees, including fresh equity shares
allotted to ESOS Trust under rights issue during the year Other Equity
Adjusted Issued, Subscribed and paid-up Share capital 246.72 246.60 Description of the nature and purpose of Other Equity (refer Statement of Changes in Equity):

Statutory reserve
₹ in crores Statutory reserve has been created pursuant to Section 45-IC of the RBI Act, 1934 and Section 29C of the
As at 31st March 2023 As at 31st March 2022
National Housing Act, 1987. The reserve fund can be utilised only for limited purposes as specified by RBI
From the Balance Sheet date and NHB respectively, from time to time and every such utilisation shall be reported to the RBI and NHB
No. of shares ₹ in crore No. of shares ₹ in crore
respectively, within specified period of time from the date of such utilisation.
a) Reconciliation of number of equity shares and
amount outstanding: Capital redemption reserve (CRR)
Issued, Subscribed and paid-up: Capital redemption reserve represents reserve created pursuant to Section 55 (2) (c) of the Companies Act,
Balance at the beginning of the year 1,23,55,29,920 247.11 1,23,55,29,920 247.11 2013 by transfer of an amount equivalent to nominal value of the Preference shares redeemed. The CRR may
Add : Fresh allotment of shares - - - - be utilised by the Company, in paying up unissued shares of the Company to be issued to the members of the
Company as fully paid bonus shares in accordance with the provisions of the Companies Act, 2013.
Balance at the end of the year 1,23,55,29,920 247.11 1,23,55,29,920 247.11

454 Empowering Emerging India INTEGRATED REPORT 2022-23 455

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Securities premium reserve Note : 24

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only
Interest income
for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies
₹ in crores
Act, 2013.
Particulars 31st March 2023 31st March 2022

General reserve I) On financial instruments measured at Amortised cost (refer note 2.7)
General reserve is created through annual transfer of profits at a specified percentage in accordance with Interest on loans 11,139.30 10,191.02
applicable regulations under the erstwhile Companies Act, 1956. The purpose of these transfers was to ensure Income from bill discounting 102.00 77.61
that if a dividend distribution in a given year is more than 10% of the paid up capital of the Company for that Interest income from investments 281.21 163.43
year, then the total dividend distribution is less than the total distributable profits for that year. Consequent Interest on term deposits with banks 210.08 181.45
to introduction of the Companies Act, 2013, the requirement to mandatorily transfer specified percentage of II) On financial instruments measured at fair value through OCI (refer note 2.11 b)
net profits to General reserve has been withdrawn. However, the amount previously transferred to the General
Interest income from investments in debt instruments 296.92 244.57
reserve can be utilised only in accordance with the specific requirements of the Companies Act, 2013.

Employee stock options outstanding Total 12,029.51 10,858.08

The Employee Stock Options outstanding represents amount of reserve created by recognition of compensation Note: There is no loan asset measured at FVTPL.
cost at grant date fair value on stock options vested but not exercised by employees and unvested stock
options in the Statement of profit and loss in respect of equity-settled share options granted to the eligible
Note : 25
employees of the Company and its subsidiaries in pursuance of the Employee Stock Option Plan.
Fees, charges and commission income
Retained earnings ₹ in crores
Retained earnings or accumulated surplus represents total of all profits retained since Company's inception. Particulars 31st March 2023 31st March 2022
Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers Fees / charges on loan transactions 151.54 76.98
to General reserve or any such other appropriations to specific reserves.
Commission / brokerage received from mutual fund distribution / other debt products 10.90 13.46
Collection fees related to transferred assets under securitisation transactions 18.14 19.44
Total 180.58 109.88
Dividend distributions made and proposed
i) Dividend on equity shares declared and paid during the year
Note : 26
₹ in crores
Particulars 31st March 2023 31st March 2022
Net gain / (loss) on fair value changes
₹ in crores
Dividend paid 444.79 98.84
Particulars 31st March 2023 31st March 2022
Profit for the relevant year 988.75 335.15
A) Net gain / (loss) on financial instruments at FVTPL
Dividend as a percentage of profit for the relevant year 45.0% 29.5%
i) On trading portfolio
- Investments (1.37) 0.09
ii) Dividends proposed for approval at the annual general meeting (not recognised as a liability as at respective
reporting date) ii) On financial instruments designated at FVTPL (8.13) 0.57
B) Others - Mutual fund units 34.87 50.68
₹ in crores
C) Total Net gain / (loss) on financial instruments at FVTPL 25.37 51.34
Particulars 31st March 2023 31st March 2022
Fair value changes :
Face value per share (Rupees) 2.00 2.00
- Unrealised 25.37 51.34
Dividend percentage 300% 180%
D) Total Net gain / (loss) on financial instruments at FVTPL 25.37 51.34
Dividend per share (Rupees) 6.00 3.60
Note: Fair value changes in this schedule are other than those arising on account of accrued interest income / expense.
Total Dividend on Equity shares (a) 741.32 444.79
Profit after tax for the year ended 31st March 2023 (b) 1,984.32 988.75
Dividend proposed as a percentage of profit after tax (a / b) 37.4% 45.0% Note : 27
The dividend declared or paid during the year by the company is in compliance with Section 123 of the Companies Sale of services
Act, 2013, as applicable. ₹ in crores
Particulars 31st March 2023 31st March 2022
Income from insurance broking business services 391.38 271.94
Total 391.38 271.94

456 Empowering Emerging India INTEGRATED REPORT 2022-23 457

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Note : 28 Note : 32
Other income Depreciation, amortisation and impairment
₹ in crores ₹ in crores
31st March 2023 31st March 2022 31st March 2023 31st March 2022
Net gain on derecognition of property, plant and equipment 3.30 1.60 Depreciation on Property, Plant and Equipment# (refer note 11) 123.36 78.63
Net gain on sale of investments measured at amortised cost 0.04 28.83 Amortisation and impairment of intangible assets (refer note 12) 13.02 12.68
Income from shared services 128.33 52.23 Depreciation on Right of Use Asset (refer note 11 and 43) 89.58 60.68
Others 1.20 0.28
Total 225.96 151.99
Total 132.87 82.94
# During the year ended 31 st March 2022, the Group has revised the estimate of useful life considered for depreciating the vehicles
under operating lease from useful life as specified in Schedule II of the Companies Act, 2013, as amended, to useful life representing
the lease period of respective lease agreements. The resultant change had an additional depreciation charge of ₹ 12.20 crore which
Note : 29 was included above under the head "Depreciation on Property, Plant and Equipment" for the year ended 31 st March 2022.

Finance costs
₹ in crores Note : 33
31st March 2023 31st March 2022
On financial liabilities measured at Amortised cost Other expenses
Interest on deposits 535.02 763.29 ₹ in crores
Interest on borrowings 2,354.89 1,629.86 31st March 2023 31st March 2022
Interest on debt securities 1,833.93 1,636.81 Rent 16.77 18.44
Interest on subordinated liabilities 332.17 324.35 Rates and taxes, excluding taxes on income 10.64 8.03
Net gain / (loss) in fair value of derivative financial instruments (10.77) 7.99 Electricity charges 19.45 15.81
Interest expense on lease liabilities (refer note 43 ) 30.21 19.28
Repairs and maintenance 18.06 7.13
Other borrowing costs 18.85 35.79
Communication Costs 42.01 35.70
Total 5,094.30 4,417.37
Printing and Stationery 18.68 12.89
Note: There is no financial liability measured at FVTPL.
Advertisement and publicity 28.86 15.61
Directors' fees, allowances and expenses 5.03 4.19
Note : 30 Auditor's fees and expenses -
- Audit fees 1.71 1.73
Impairment on financial instruments
- Taxation matters - (0.02)
₹ in crores
- Other services 0.60 0.63
31st March 2023 31st March 2022
On financial instruments measured at Amortised cost - Reimbursement of expenses 0.06 0.07
Bad debts and write offs 2,606.74 2,777.30 Legal and professional charges 154.97 78.79
Loans (1,423.04) (85.77) Insurance 70.66 53.29
Investments (0.64) 1.21 Manpower outsourcing cost 219.21 245.17
Loan commitment 0.14 (2.39) Donations 0.39 -
Trade receivables and other contracts (0.61) 0.03 Corporate Social Responsibility (CSR) expenses 50.64 46.10
Total 1,182.59 2,690.38
Conveyance and travel expenses 184.22 117.39
Note: There is no financial instrument measured at FVOCI.
Other expenses 270.50 226.76
Total 1,112.46 887.71
Note : 31
Employee benefits expenses Note : 34
₹ in crores
Exceptional items
31st March 2023 31st March 2022
₹ in crores
Salaries and wages 1,927.75 1,453.14
31st March 2023 31st March 2022
Contribution to provident funds and other funds 134.40 116.25
Profit on sale of investments in shares (refer note 41(i)) - 20.57
Share based payments to employees 14.53 12.97
Impairment loss provision on equity investment in Sri Lankan subsidiary, Mahindra Ideal (56.06) -
Staff welfare expenses 38.65 30.76 Finance Limited (MIFL) (refer note 40)
Total 2,115.33 1,613.12 Total (56.06) 20.57

458 Empowering Emerging India INTEGRATED REPORT 2022-23 459

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Note : 35 a) The terms and conditions of the Employees Stock Option Scheme 2010 are as under :
₹ in crores
Earning Per Share (EPS)
Particulars Terms and conditions
₹ in crores
Type of arrangement Employees share based payment plan administered through ESOS Trust
31st March 2023 31st March 2022
Contractual life 3 years from the date of each vesting
Profit for the year (₹ in crore) 2,072.40 1,136.87
Number of vested options exercisable Minimum of 50 or number of options vested whichever is lower
Weighted average number of Equity Shares used in computing basic EPS 1,23,31,47,111 1,23,22,87,519
Method of settlement By issue of shares at exercise price
Effect of potential dilutive Equity Shares on account of unexercised employee stock 12,09,941 14,58,085
options Vesting conditions 20% on expiry of 12 months from the date of grant
Weighted average number of Equity Shares used in computing diluted EPS 1,23,43,57,052 1,23,37,45,604 20% on expiry of 24 months from the date of grant
Basic Earnings per share (₹) (Face value of ₹ 2/- per share) 16.81 9.23 20% on expiry of 36 months from the date of grant
Diluted Earnings per share (₹) 16.79 9.21 20% on expiry of 48 months from the date of grant
20% on expiry of 60 months from the date of grant

Note : 36 b) Options granted during the year:

 uring the year ended 31 st March 2023, the Company has not granted any stock options (31 st March 2022: nil
D
Accumulated Other Comprehensive Income
) to the employees under the Employees’ Stock Option Scheme 2010.
₹ in crores
31st March 2023 31st March 2022
A) Items that will not be reclassified to profit or loss c) Summary of stock options: ₹ in crores
Balance at the beginning of the year 21.47 2.01
As at 31 st March 2023 As at 31st March 2022
- Net gain / (loss) on equity instruments through OCI - 26.01
Particulars Weighted Weighted
Income tax impact thereon - (6.55) No. of stock No. of stock
average exercise average exercise
Balance at the end of the year : Subtotal (A) 21.47 21.47 options options
price (₹)# price (₹)#
B) Items that will be reclassified to profit or loss Options outstanding at the beginning of the year 21,67,340 26.91 33,54,484 2.00
Balance at the beginning of the year (7.64) (9.60) Options granted during the year - - - -
- Exchange differences in translating the financial statements of a foreign associate (1.40) (14.49) Adjustment pertaining to Rights Issue - - - -
- The effective portion of gains and loss on hedging instruments in a cash flow (6.34) - Options forfeited / lapsed during the year 47,783 26.46 1,89,050 26.00
hedge
Options expired during the year 41,860 31.62 7,955 28.37
- Share of other comprehensive income / (loss) of equity accounted investees 53.79 16.57
Options exercised during the year 6,42,714 26.63 9,90,139 25.20
- Net gain / (loss) on debt instruments through OCI (90.76) (0.16)
Options outstanding at the end of the year 14,34,983 26.91 21,67,340 26.91
Income tax impact thereon 24.44 0.04
Options vested but not exercised at the end of the year 6,96,553 27.87 6,11,688 29.21
Balance at the end of the year : Subtotal (B) (27.92) (7.64)
Accumulated Other Comprehensive Income (A + B) (6.45) 13.83 #Adjusted for additional options issued in the ratio of one equity share for every one equity share held under Rights issue made by
the Company during August 2020. The options issued under ESOP scheme 2010 are exercisable at ₹2/- per option and adjustment
options issued under Rights issue are exercisable at ₹50/- each, including premium of ₹ 48/- per option (being the issue price under
Rights allotment).
Note : 37
Employee Stock Option Plan
d) Information in respect of options outstanding : ₹ in crores
The Company had allotted 48,45,025 Equity shares (face value of ₹2/- each) under Employee Stock Option
Scheme 2010 at par on 3rd February, 2011 to Mahindra and Mahindra Financial Services Limited Employees’ Stock As at 31 st March 2023 As at 31st March 2022
Option Trust ("the Trust") set up by the Company. The Trust holds these shares for the benefit of the employees Exercise price Weighted Weighted
No. of stock No. of stock
and issues them to the eligible employees as per the recommendation of the Compensation Committee. options
average
options
average
remaining life remaining life

Pursuant to the Rights issue of one equity share for every equity share held as on record date, at an issue i) At ₹2.00 per option 6,90,412 35months 10,42,783 43 months
price of ₹50 per Equity Share (including a premium of H48 per Equity Share), made by the Company, 20,63,662 ii) At ₹50.00 per option 7,44,571 34months 11,24,557 42 months
equity shares have been allotted to the Trust in respect of its rights entitlement on 17th August 2020. All the 14,34,983 21,67,340
option holders (beneficiaries) under existing grants have automatically became entitled to additional options at
₹50/- per option as rights adjustment and accordingly, the number of outstanding options stand augmented
in the same ratio as the rights issue. All the terms and conditions applicable to these additional options issued ₹ in crores
under rights issue shall remain same as original grant.
Year ended 31 st March 2023 Year ended 31st March 2022
Upon exercise of stock options, including additional options issued as per Rights issue, under the scheme by Date of exercise
Weighted average
Date of exercise
Weighted average
share price (₹) share price (₹)
eligible employees, the Trust had issued 57,62,513 equity shares to employees up to 31 st March 2023 (31 st
March 2022: 51,19,799 equity shares), of which 6,42,714 equity shares (31 st March 2022: 9,90,139 equity 1st April 2022 to 215.21 1st April 2021 to 158.78
shares) were issued during the current year. This has resulted in an increase in equity share capital by ₹0.13 31st March 2023 31st March 2022
crore for the year ended 31 st March 2023 (31 st March 2022 : ₹ 0.20 crore).

460 Empowering Emerging India INTEGRATED REPORT 2022-23 461

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

f) Determination of expected volatility Variability in withdrawal rates -

The measure of volatility used in the Black-Scholes option pricing model is the annualised standard deviation If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits
of the continuously compounded rates of return on the stock over a period of time. will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the
resignation date.
The determination of expected volatility is based on historical volatility of the stock over the most recent
period that is generally commensurate with the expected life of the option being valued. The period considered Regulatory Risk -
for volatility is adequate to represent a consistent trend in the price movements and the movements due to Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended up-
abnormal events are evened out. to-date). There is a risk of change in the regulations requiring higher gratuity payments (e.g. raising the present
ceiling of ₹ 20,00,000, raising accrual rate from 15/26 etc.).
Accordingly, since each vest has been considered as a separate grant, the model considers the volatility for
periods, corresponding to the expected lives of different vests, prior to the grant date. Volatility has been Inflation risk -
calculated based on the daily closing market price of the Company's stock price on NSE over these years.
The present value of some of the defined benefit plan obligations are calculated with reference to the future
Similar approach was followed in determination of expected volatility based on historical volatility for all the
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's
grants under the scheme.
liability. The post retirement medical benefit obligation is sensitive to medical inflation and accordingly, an
increase in medical inflation rate would increase the plan's liability.
In respect of stock options granted under Employee Stock Option Scheme 2010, the accounting is done as
per the requirements of Ind AS 102 - Share-based payment. Consequently, ₹4.55 crore (31 st March 2022:
Life expectancy -
₹9.20 crore) has been included under 'Employee Benefits Expense' as 'Share-based payment to employees'
based on respective grant date fair value, after adjusting for reversals on account of options forfeited. The The present value of defined benefit plan obligation is calculated by reference to the best estimate of the
amount includes cost reimbursements to the holding company of ₹1.05 crore (31 st March 2022: ₹ 2.70 crore) mortality of plan participants, both during and after the employment. An increase in the life expectancy of the
in respect of options granted to employees of the Company and excludes net recovery of ₹0.22 crore (31 st plan participants will increase the plan's liability.
March 2022: ₹0.30 crore) from its subsidiaries for options granted to their employees.
If actual mortality rates are higher than assumed mortality rate assumption than the gratuity benefits will
be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of
cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth
Note : 38 and discount rate.
Employee benefits
General description of defined benefit plans Details of defined benefit plans as per actuarial valuation are as follows:
Gratuity ₹ in crores
Most of the entities operates a gratuity plan covering qualifying employees. The benefit payable is the greater Funded Plan Gratuity
Year ended 31st March,
of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the Particulars
employee. The benefit vests upon completion of five years of continuous service and once vested it is payable 2023 2022
to employees on retirement or on termination of employment. In case of death while in service, the gratuity I. Amounts recognised in the Statement of Profit & Loss
is payable irrespective of vesting. Most of the entities makes annual contribution to the gratuity scheme Current service cost 16.14 13.89
administered by the Life Insurance Corporation of India through its Gratuity Trust Fund. Net Interest cost 3.11 2.31
Past service cost - -
Post retirement medical Payment on account of employee transferred 0.22 -
The Parent Company provides for post retirement medical cover to select grade of employees to cover the Actuarial (gain) / loss - -
retiring employee and their spouse upto a specified age through mediclaim policy on which the premiums are Adjustment due to change in opening balance of Plan assets (5.65) (5.06)
paid by the Company. The eligibility of the employee for the benefit as well as the amount of medical cover Total expenses included in employee benefits expense 13.82 11.14
purchased is determined by the grade of the employee at the time of retirement. II. Amount recognised in Other Comprehensive income*
Remeasurement (gains) / losses:
Through its defined benefit plans the company is exposed to a number of risks, the most significant of which a) Actuarial (gains) / losses arising from changes in -
are detailed below: - demographic assumptions 0.54 (0.27)
- financial assumptions (17.34) (3.32)
Asset volatility - - experience adjustments 0.25 1.57
The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan b) Return on plan assets, excluding amount included in net interest expense / - -
assets underperform compared to this yield, this will create or increase a deficit. The defined benefit plans may (income)
hold equity type assets, which may carry volatility and associated risk. Total amount recognised in other comprehensive income (16.55) (2.02)
*The above data is including the inter company adjustment of associate(s) / joint venture(s) which are accounted for using equity
method in these consolidated financial statements for current year. (refer note 41(i))
Change in bond yields -
III. Changes in the defined benefit obligation
A decrease in government bond yields will increase plan liabilities, although this is expected to be partially
Opening defined benefit obligation 126.72 115.63
offset by an increase in the value of the plan's investment in debt instruments.
Add / (less) on account of business combination / transfers - 0.67
Current service cost 16.15 13.89
Past service cost - -

462 Empowering Emerging India INTEGRATED REPORT 2022-23 463

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

Details of defined benefit plans as per actuarial valuation are as follows: The estimate of future salary increases, considered in actuarial valuation, considers inflation, seniority, promotion
₹ in crores and other relevant factors, such as supply and demand in the employment market.
Funded Plan Gratuity
Particulars Year ended 31st March, The plan assets have been primarily invested in government securities and corporate bonds.
2023 2022
The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations.
Interest expense 9.33 7.98
Actuarial valuations involve making various assumptions that may differ from actual developments in the future.
Remeasurement (gains) / losses arising from changes in - - -
These includes the determination of the discount rate, future salary increases and mortality rate. Due to these
- demographic assumptions 0.77 0.27
complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions
- financial assumptions (1.78) (5.95)
are reviewed at each reporting date. The present value of the defined benefit obligation and the related current
- experience adjustments 13.37 4.79
service cost and planned service cost were measured using the projected unit cost method.
Benefits paid (14.30) (10.55)
Closing defined benefit obligation 150.27 126.73 The contribution to provident fund, superannuation fund and national pension scheme at Group level aggregating
IV. Change in the fair value of plan assets during the year to ₹94.90 crore (31 st March 2022: ₹ 82.47 crore) has been recognised in the Statement of profit and loss
Opening Fair value of plan assets 79.24 77.04 under the head " Employee benefits expense".
Interest income 5.16 4.67
Expected return on plan assets (4.11) (3.69)
Contributions by employer 46.53 7.10
Adjustment due to change in opening balance of plan assets 5.65 5.06 Note: 39
Actual Return on plan assets in excess of the expected return (0.43) (0.40) Additional disclosures
Actual Benefits paid (14.22) (10.55)
i) During the financial years ended 31 st March 2023 and 31 st March 2022, the Group has not granted any
Closing Fair value of plan assets 117.82 79.23 loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined
V. Net defined benefit obligation under the Companies Act, 2013), either severally or jointly with any other person (a) repayable on demand
Defined benefit obligation 150.26 126.73 or (b) without specifying any terms or period of repayment.
Fair value of plan assets 117.81 79.23
Surplus / (Deficit) (32.45) (47.50) ii) There is no Benami Property held by the Company and there is no proceedings have been initiated or
Current portion of the above (4.71) (3.05) pending against the company for holding any benami property under the Benami Transactions (Prohibition)
Non current portion of the above (27.74) (44.45) Act, 1988 (45 of 1988) and rules made thereunder.
VI. Expected contribution for the next reporting year 16.31 24.79
iii) Disclosure of transactions with the companies struck off under section 248 of Companies Act, 2013 or
section 560 of Companies Act, 1956
Actuarial assumptions and Sensitivity
₹ in crores
Funded Plan Gratuity
As at 31st March 2023
Particulars Year ended 31st March, ₹ in crores
2023 2022 Nature of Balance Relationship with
transactions outstanding as at the Struck off
I. Actuarial assumptions Name of Struck off company
with struck-off 31st March 2023 company, if any,
Discount Rate (p.a.) 7.50% 7.32% Company (₹ in crore) to be disclosed
Attrition rate 22.00 for age 25.52 for age 1 ASHWANI ENTERPRISES PRIVATE LIMITED Receivables 0.04 External
upto 30, 16.00for upto 30, 16.17 2 COCOWINGS ENTERPRISES PRIVATE LIMITED Receivables 0.03 External
age 31-44, 8.00 for age 31-44, 3 MANSAROVAR INDIA AQUA BEVERAGES PRIVATE LIMITED Receivables 0.01 External
for 44 and above 5.98 for 44 and 4 SATHESRI AGRO PRODUCTS PRIVATE LIMITED Receivables 0.06 External
above 5 BRILLIANT RISIE PRIVATE LIMITED Receivables 0.07 External
Expected rate of return on plan assets (p.a.) 7.32% 6.91% 6 ALCROOKS AND COOK PRIVATE LIMITED Receivables - External
Rate of Salary increase (p.a.) 7.00% 7.00% 7 OM DHAR ENGINEERING PRIVATE LIMITED Receivables - External
In-service Mortality Indian Assured Indian Assured 8 KIRAN ENVIRO-TECH ENERGY PRIVATE LIMITED Receivables 0.02 External
Lives Mortality Lives Mortality 9 GARHWAL AIRCON SERVICES PRIVATE LIMITED Receivables 0.07 External
(2012-14) (2012-14) 10 IGI CORPORATION PVT LTD Receivables - External
Ultimate Ultimate 11 MRA REFINO PRIVATE LIMITED Receivables 0.02 External
II. Quantitative sensitivity analysis for impact of significant assumptions on 12 GR AUDITYA RENEWABLE ENERGIES PRIVATE LIMITED Receivables 0.06 External
defined benefit obligation are as follows: 13 JCR INFRABUILT PRIVATE LIMITED Receivables 0.04 External
One percentage point increase in discount rate (7.90) (9.37) 14 NOVOCON SOLUTION PVT LTD Receivables 0.00 External
One percentage point decrease in discount rate 7.82 6.53 15 DEVINE DEVBUILD PRIVATE LIMITED Receivables - External
16 ENGINEERS REALTY PRIVATE LIMITED Receivables - External
One percentage point increase in Salary growth rate 7.82 6.47
17 PUNEETH TECHNO PROJECTS PRIVATE LIMITED Receivables 0.03 External
One percentage point decrease in Salary growth rate (8.04) (9.46)
18 PROBUS INFRATECH PRIVATE LIMITED Receivables 0.07 External
III. Maturity profile of defined benefit obligation 19 ATCOM INFRATECH PRIVATE LIMITED Receivables 0.04 External
Within 1 year 37.34 29.02 20 GOLUDEV INFRASTRUCTURE PRIVATE LIMITED Receivables 0.02 External
Between 1 and 5 years 203.42 153.87

464 Empowering Emerging India INTEGRATED REPORT 2022-23 465

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

As at 31st March 2023 As at 31st March 2022

₹ in crores ₹ in crores
Nature of Balance Relationship with Nature of Balance Relationship with
transactions outstanding as at the Struck off transactions outstanding as at the Struck off
Name of Struck off company Name of Struck off company
with struck-off 31st March 2023 company, if any, with struck-off 31st March 2022 company, if any,
Company (₹ in crore) to be disclosed Company (₹ in crore) to be disclosed
21 SSNG BUSINESS PRIVATE LIMITED Receivables - External 10 SARASWATIPUR TEA AND INDUSTRIES PVT.LTD. Receivables 0.00 External
22 NAVADHARA SUPER MARKET PRIVATE LIMITED Receivables - External 11 FAST BUSINESS CENTRE LIMITED Receivables 0.02 External
23 NIRBAN LOGISTICS PRIVATE LIMITED Receivables - External 12 KIRAN ENVIRO-TECH ENERGY PRIVATE LIMITED Receivables 0.03 External
24 ASVRJ LOGISTIC PVT LTD Receivables 0.01 External 13 ASHI INFRAPROJECTS AND ASSOCIATES PRIVATE LIMITED Receivables 0.01 External
25 SPXPRESS LOGISTICS PRIVATE LIMITED Receivables 0.07 External
14 SATKAR SECURITY PROVIDER PRIVATE LIMITED Receivables 0.01 External
26 SLTT INDIA PRIVATE LIMITED Receivables 0.03 External
27 DHARAA MOBILITY PVT LTD Receivables - External 15 ATCOM INFRATECH PRIVATE LIMITED Receivables 0.08 External
28 AUTO WORLD PRIVATE LIMITED Receivables 0.83 External 16 GOLUDEV INFRASTRUCTURE PRIVATE LIMITED Receivables 0.07 External
29 RA GLOBALCITY HOUSING PRIVATE LIMITED Receivables - External 17 M.Y. TRANSPORT COMPANY PRIVATE LIMITED Receivables 0.32 External
30 ARSH BUILDWELL PRIVATE LIMITED Receivables - External 18 GOMATESHWAR INVESTMENTS PVT LTD Shares held 50* External
31 ASHI INFRAPROJECTS AND ASSOCIATES PRIVATE LIMITED Receivables - External by struck off
32 VENHAN TECHNOLOGIES PRIVATE LIMITED Receivables 0.18 External Company
33 SAMBODHI TECH SOLUTIONS PRIVATE LIMITED Receivables 0.13 External 19 DREAMS BROKING PRIVATE LIMITED Shares held 476* External
34 CZONE ENGINEERS PRIVATE LIMITED Receivables 0.05 External by struck off
35 M/S. ASHWA ARTS PRIVATE LIMITED Receivables 0.01 External Company
36 CONSOLE CARGO LOGISTICS SERVICES (I) PRIVATE LIMITED Receivables 0.07 External 20 UNICKON FINCAP PRIVATE LIMITED Shares held 689* External
37 ZAFCON ENGINEERING PRIVATE LIMITED Receivables 0.04 External by struck off
38 XPERTO MARKETING SOLUTION PVT LTD Receivables - External Company
39 RAMA TENT HOUSE PRIVATE LIMITED Receivables 0.09 External * Number of Equity Shares
40 MILLPOND HUMAN RESOURCE PRIVATE LIMITED Receivables 0.06 External
41 4 SQUARE FITNESS PRIVATE LIMITED Receivables 0.02 External iv) There is no charges or satisfaction in relation to any debt / borrowings yet to be registered with ROC
42 PARVATHI LIFE SCIENCES (OPC) PRIVATE LIMITED Receivables 0.01 External beyond the statutory period.
43 SHIRIDI SRISAI SOLUTIONS PVT LTD Receivables 0.06 External
44 DEVBHUMI AVIATION PVT LTD Receivables - External v) The Group has complied with the number of layers prescribed under clause (87) of section 2 of the Act
45 VH SQUARE HEALTHCARE PVT LTD Receivables 0.08 External read with Companies (Restriction on number of Layers) Rules, 2017.
46 SHREE BIO CROP INDIA PRIVATE LIMITED Receivables - External
47 LIANCE CONSULTANT&ENGINEERS PRIVATE LIMITED Payables 0.00 External vi) Utilisation of Borrowed funds and share premium:
48 DREAMS BROKING PRIVATE LIMITED Shares held 476* External
by stuck off A) The Group has not advanced or loaned or invested funds (either borrowed funds or share premium
Company or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
49 UNICKON FINCAP PRIVATE LIMITED Shares held 689* External (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
by stuck off shall -
Company
50 EFCEE SAROVAR PORTICO DIV LEELA TRADELINK PVT LTD Payables - External (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
51 XTECHONE INTERNET SOLUTIONS PVT LTD Payables - External by or on behalf of the group (Ultimate Beneficiaries) or
* Number of Equity Shares
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
iii) Discloser of transactions with the companies struck off under section 248 of Companies Act, 2013 or
B) The Group has not received any fund from any person(s) or entity(ies), including foreign entities
section 560 of Companies Act,1956 (continued)
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the group
shall -
As at 31st March 2022
₹ in crores (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
Nature of Balance Relationship with by or on behalf of the Funding Party (Ultimate Beneficiaries) or
transactions outstanding as at the Struck off
Name of Struck off company st
with struck-off 31 March 2022 company, if any,
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Company (₹ in crore) to be disclosed
1 CONSOLE CARGO LOGISTICS SERVICES (I) PRIVATE LIMITED Receivables 0.09 External vii) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
2 ANUSHREE CONSTROTECH PRIVATE LIMITED Receivables - External
3 SHAN STRATEGIC SOLUTIONS PRIVATE LIMITED Receivables - External viii) There are no transactions which have not been recorded in the books of accounts and has been surrendered
4 HIMHYDRO CONSTRUCTION PRIVATE LIMITED Receivables - External or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Also, there
5 G. V. FOODS PRIVATE LIMITED Receivables - External are no previously unrecorded income and related assets.
6 SINGHAL BRICKS PRIVATE LIMITED Receivables - External
7 MODESTY INDUSTRIES PRIVATE LIMITED Receivables 0.01 External
8 RA GLOBALCITY HOUSING PRIVATE LIMITED Receivables (0.00) External
9 GRACIOUS BOTTLES PRIVATE LIMITED Receivables 0.01 External

466 Empowering Emerging India INTEGRATED REPORT 2022-23 467

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Note: 40 Regulatory capital

During the current financial year, in relation to serious economic crisis evolved over a period of time in the ₹ in crores
recent past resulting in currency devaluation and worsening business situation in Sri Lanka, the Group reviewed As at As at
31st March 2023 31st March 2022
future cash flow estimates of its Sri Lankan subsidiary, Mahindra Ideal Finance Limited (MIFL). Based on these
projections, the Company obtained a valuation report from an independent valuer for valuation of its equity Tier - I capital 15,307.93 13,694.10
stake in MIFL. As per the valuation report, which was prepared using discounted cash flow method, and based on Tier - II capital 2,045.12 1,982.55
the management assessment, the recoverable amount of the investment in MIFL was lower than the carrying Total Capital 17,353.05 15,676.65
amount of underlying assets of MIFL in the consolidated books and accordingly, an impairment loss provision of Aggregate of Risk Weighted Assets 77,061.91 56,482.56
₹ 56.06 crore was recognised in the Consolidated Statement of profit and loss as an exceptional item with ₹ Tier - I capital ratio 19.87% 24.24%
43.40 crore being charged off to Goodwill and the balance of ₹12.66 crore adjusted against identified assets. Tier - II capital ratio 2.65% 3.51%
Total Capital ratio 22.52% 27.75%
Note: 41
The housing finance business of the Group is subject to the capital adequacy requirements of the National
Transactions in the nature of change in ownership in other entities
Housing Bank (NHB) and has complied with all regulatory requirements related to regulatory capital and
Transactions pertaining to current year ended 31st March 2022: capital adequacy ratios as prescribed by NHB.
Pursuant to the Share Subscription, Share Purchase and Shareholders' Agreement dated 20 th August
2019 with Ideal Finance Limited, Sri Lanka (“Ideal Finance”) and its existing shareholders for investment Note: 43
of the third and final tranche for acquisition of shares of Ideal Finance from its existing shareholders,
Leases
the Company had completed the acquisition of the balance 20% of the Equity Share Capital aggregating
2,91,29,032 Equity Shares of Ideal Finance from its existing shareholders for ₹ 33.97 crore on 8th July I) In the cases where assets are taken on operating lease (as lessee) -
2021, resulting in an increase in the Company’s stake in Ideal Finance from 38.20% to 58.20% with a As a lessee, the Group’s lease asset class primarily consist of buildings or part thereof taken on lease for
cumulative investment of ₹77.97 Crore. Consequent to this investment, Ideal Finance has become a Subsidiary office premises, certain IT equipments and general purpose office equipments used for operating activities.
of the Company effective 8th July 2021 and the name was changed to Mahindra Ideal Finance Limited.
Based on the fair valuation of Ideal Finance and in accordance with applicable Accounting Standard, a capital In accordance with the requirements under Ind AS 116, Leases, the Group has recognised the lease liability
gain of ₹20.57 crore has been recognised as an exceptional item in the Consolidated Statement of profit at the present value of the future lease payments discounted at the incremental borrowing rate at the
and loss for the year ended 31 st March 2022 along with recognition of Goodwill of ₹43.40 crore and Non- date of initial application as at 1 st April 2019, and thereafter, at the inception of respective lease contracts
controlling interest of ₹39.88 crore in the Consolidated Balance sheet. and ROU asset is equal to lease liability subject to certain practical expedients as allowed by the standard.

a) Maturity Analysis - Contractual Undiscounted Cash Flow:

Note: 42
₹ in crores
Capital management As at As at
31st March 2023 31st March 2022
The Group's capital management strategy is to effectively determine, raise and deploy capital so as to create
value for its shareholders. The same is done through a mix of either equity and / or convertible and / or Less than 1 year 106.09 63.73
combination of short term / long term debt as may be appropriate. 1 - 3 years 164.48 100.96
3 - 5 years 136.10 65.45
The Group determines the amount of capital required on the basis of operations, capital expenditure and More than 5 years 170.67 44.52
strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity Total undiscounted lease liabilities 577.34 274.66
profile of overall debt portfolio of the Group.
Other disclosures:
The Parent Company is subject to the capital adequacy requirements of the Reserve Bank of India (RBI). Under Following table summarises other disclosures including the note references for the expense, asset and
RBI’s capital adequacy guidelines, as applicable, the Parent Company is required to maintain a capital adequacy liability heads under which certain expenses, assets and liability items are grouped in the financial statements.
ratio consisting of Tier I and Tier II Capital. The total of Tier II Capital at any point of time, shall not exceed 100
percent of Tier I Capital. The minimum capital ratio as prescribed by RBI guidelines and applicable to the Parent ₹ in crores
Company, consisting of Tier I and Tier II capital, shall not be less than 15 percent of its aggregate risk weighted Amount for the Amount for the
assets on-balance sheet and of risk adjusted value of off-balance sheet. year ended year ended
31st March 2023 31st March 2022

The Parent Company has complied with all regulatory requirements related to capital and capital adequacy i) Depreciation charge for Right-Of-Use assets for Leasehold premises 89.58 60.68
(presented under note - 32 "Depreciation, amortisation and impairment")
ratios as prescribed by RBI, details of which are given below :-
ii) Interest expense on lease liabilities (presented under note - 29 "Finance costs") 30.21 19.28
iii) Expense relating to short-term leases (included in Rent expenses under note 16.77 8.24
33 " Other expenses")
iv) Expense relating to leases of low-value assets (included in Rent expenses 10.74 10.20
under note 33 " Other expenses")
v) Payments for principal portion of lease liability 69.72 46.62

468 Empowering Emerging India INTEGRATED REPORT 2022-23 469

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

₹ in crores ₹ in crores
Amount for the Amount for the As at As at
Particulars
year ended year ended 31st March 2023 31st March 2022
31st March 2023 31st March 2022 i) New vehicles to retail customers on operating lease -
vi) Additions to right-of-use assets during the year (refer note 11) 317.81 60.38 Not later than one year 87.95 43.20
vii) Carrying amount of right-of-use assets at the end of the reporting period by
Later than one year but not later than five years 169.72 89.15
class of underlying asset -
- Property taken on lease for office premises (presented under note - 11 435.54 213.79 257.67 132.35
"Property, plant and equipments") ii) Used and refurbished vehicles to travel operators / taxi aggregators -
viii) Lease liabilities (presented under note - 20 "Other financial liabilities") 481.64 239.70 Not later than one year 0.20 0.21
Later than one year but not later than five years 0.12 0.12
Pursuant to amendments brought in by the Ministry of Corporate Affairs through the Companies (Indian 0.32 0.33
Accounting Standards) Amendment Rules, 2021 vide notification dated 18th June 2021, Ind AS 116 -
Leases paragraph 46B was amended to extend the application of practical expedient related to Covid-19- III) In the cases where assets are given on finance lease (as lessor) -
Related Rent Concessions to lease payments originally due on or before 30 th June 2022. The Company
Rentals receivable on finance lease :
had applied this practical expedient to all such rent concessions received during the year ended 31 st March
2023 (up to 30 th June 2022) from certain Lessors that meet the conditions specified in paragraph 46B. ₹ in crores
The amount of rent concessions recognised in the statement of profit or loss for the year under review is
As at As at
not material. Particulars
31st March 2023 31st March 2022
Gross Rental Receivable 378.04 162.15
II) In the cases where assets are given on operating lease (as lessor) -
Less : Unearned Income 93.38 39.39
Key terms of the lease are as below :
Net Receivable before charging allowance for Impairment loss 284.66 122.76
Less : Allowance for Impairment losses 10.96 4.68
i) Both New and Used vehicles are offered on Lease for a tenure ranging from 24 to 60 months.
Total Net Receivables 273.70 118.08
ii) Customised leasing solutions are offered with value-added services like Fleet Management with
regards to vehicle maintenance, Insurance management including claim settlement, pick-up and drop,
replacement vehicle etc ₹ in crores
Particulars Within 1 year 1 to 5 years Over 5 years Total
iii) The consideration payable is the monthly lease rental which varies based on the make / model of the Gross Rental Receivables 134.05 243.99 0.00 378.04
vehicle and tenure leased. Less : Unearned Income 31.75 61.63 0.00 93.38
Net Receivable before charging allowance for 102.30 182.36 0.00 284.66
Rental income arising from these operating leases is accounted for on a straight-line basis over the lease Impairment loss
terms and is included in rental income in the Statement of profit and loss. Costs, including depreciation,
incurred in earning the lease income are recognised as an expense.
Note: 44
Other details are as follows: Frauds reported during the year
₹ in crores
There were 185 cases (31 st March 2022: 274 cases) of frauds amounting to ₹4.57 crore (31 st March 2022:
Year ended Year ended
Particulars
31st March 2023 31st March 2022
₹6.22 crore) reported by the Group during the year. The Group has recovered an amount of ₹4.10 crore (31 st
March 2022: ₹2.92 crore) and has initiated appropriate legal actions against the individuals involved. The claims
i) New vehicles to retail customers on operating lease -
for the un-recovered losses have been lodged with the insurance companies.
Gross carrying amount 321.13 144.44
Depreciation for the year 48.23 23.42
Note: 45
Accumulated Depreciation 73.91 36.60
ii) Used and refurbished vehicles to travel operators / taxi aggregators - Contingent liabilities and commitments (to the extent not provided for)
Gross carrying amount 2.71 2.71 ₹ in crores
Depreciation for the year 0.24 1.56 Particulars 31st March 2023 31st March 2022
Accumulated Depreciation 1.38 2.32 i) Contingent liabilities
Claims against the Company not acknowledged as debts 181.66 173.87
The total future minimum lease rentals receivable for the non-cancellable lease period as at the Balance Guarantees 1,983.72 1,720.34
sheet date is as under:
Other money for which the Company is contingently liable 1.22 0.03
2,166.60 1,894.24
ii) Commitments
Estimated amount of contracts remaining to be executed on capital account 214.70 66.69

470 Empowering Emerging India INTEGRATED REPORT 2022-23 471

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Contingent liabilities and commitments (to the extent not provided for) Note: 47
₹ in crores There was no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237
Particulars 31st March 2023 31st March 2022 of the Companies Act, 2013 during the year.
Commitment towards Share Purchase Agreement with Inclusion Resources Private 206.39 -
Limited (IRPL) to acquire balance 20% equity stake in its subsidiary Mahindra
Insurance Brokers Ltd (MIBL)
Note: 48
Other commitments 633.26 478.42 The Group has a process whereby periodically all long term contracts (including derivative contracts) are
1,054.35 545.11 assessed for material foreseeable losses. At the year end, the Group has reviewed and ensured that adequate
Total 3,220.95 2,439.35
provision as required under any law / accounting standards for material foreseeable losses on such long term
contracts (including derivative contracts) has been made in the books of accounts.
The Group’s pending litigations comprise of claims against the Group primarily by the customers and proceedings
pending with Income Tax, sales tax / VAT and other authorities. The Group has reviewed all its pending litigations Note: 49
and proceedings and has adequately provided for where provisions are required and disclosed the contingent
liabilities where applicable, in its financial statements. The amount of provisions / contingent liabilities is based Reconciliation of movement of liabilities to cash flows arising from financing activities
on management’s estimate, and no significant liability is expected to arise out of the same.
Year ended 31st March 2023
The Group does not expect the outcome of these proceedings to have a materially adverse effect on its ₹ in crores
financial performance and financial position regarding the amounts disclosed above, it is not practicable to 31st March, Business Cash flows Exchange
Amortisation of
New 31st March,
Particulars loan origination
disclose information on the possibility of any reimbursements as it is determinable only on the occurrence of 2022 Combination (net) difference leases 2023
costs
uncertain future events.
Debt securities 21,597.15 - 6,316.00 - (0.36) - 27,912.79
Note: 46 Borrowings 28,652.09 - 15,597.76 (96.85) 1.40 - 44,154.40
(Other than debt securities)
Transfer of financial assets Deposits 8,286.26 - (2,859.08) - 31.56 - 5,458.74
Transferred financial assets that are not derecognised in their entirety Subordinated liabilities 3,590.13 - 309.99 - 2.51 - 3,902.63
The Group has transferred certain pools of fixed rate loan receivables backed by underlying assets in the form Lease liabilities 239.70 - (68.72) - - 310.66 481.64
of tractors, vehicles, equipments etc. by entering in to securitisation transactions with the Special Purpose Total liabilities from 62,365.33 - 19,295.95 (96.85) 35.11 310.66 81,910.20
Vehicle Trusts ("SPV Trust") sponsored by Commercial banks for consideration received in cash at the inception financing activities
of the transaction.

The Group, being Originator of these loan receivables, also acts as Servicer with a responsibility of collection Year ended 31st March 2023
of receivables from its borrowers and depositing the same in Collection and Payout Account maintained by the ₹ in crores
SPV Trust for making scheduled payouts to the investors in Pass Though Certificates (PTCs) issued by the SPV Amortisation of
31st March, Business Cash flows Exchange New 31st March,
Trust. These securitisation transactions also requires the Group to provide for first loss credit enhancement in Particulars
2021 Combination (net)* difference
loan origination
leases 2022
various forms, such as corporate guarantee, cash collateral, subscription to subordinated PTCs etc. as credit costs
support in the event of shortfall in collections from underlying loan contracts. By virtue of existence of credit Debt securities 19,671.04 - 1,917.70 - 8.41 - 21,597.15
enhancement, the Group is exposed to credit risk, being the expected losses that will be incurred on the Borrowings (Other than debt 32,454.28 46.17 (3,773.24) (90.38) 15.26 - 28,652.09
transferred loan receivables to the extent of the credit enhancement provided. securities)
Deposits 9,366.16 51.72 (1,141.24) - 9.62 - 8,286.26
In view of the above, the Group has retained substantially all the risks and rewards of ownership of the financial Subordinated liabilities 3,609.47 - (22.25) - 2.91 - 3,590.13
asset and thereby does not meet the derecognition criteria as set out in Ind AS 109. Consideration received in
Lease liabilities 239.76 5.32 (54.66) - - 49.28 239.70
this transaction is presented as "Associated liability related to Securitisation transactions" under Note no.17.
Total liabilities from 65,340.71 103.21 (3,073.69) (90.38) 36.20 49.28 62,365.33
financing activities
The following table provide a summary of financial assets that have been transferred in such a way that part or
all of the transferred financial assets do not qualify for derecognition, together with the associated liabilities: *Including the inter company adjustment of associate(s) / joint venture(s) which are accounted for using equity method in these
consolidated financial statements for current year. (refer note 41).

₹ in crores
Particulars 31st March 2023 31st March 2022 Note: 50
Securitisations - Segment information
Carrying amount of transferred assets measured at amortised cost 6,752.92 8,347.94 Primary segment (Business Segment)
Carrying amount of associated liabilities (Term Loan) 6,733.26 8,111.81 The Group's business is organised in to following segments and the management reviews the performance
Fair value of assets (A) 6,533.48 8,154.47 based on the business segments as mentioned below:
Fair value of associated liabilities (B) 6,796.88 8,231.42
Net position at FV (A-B) (263.40) (76.95)

472 Empowering Emerging India INTEGRATED REPORT 2022-23 473

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

51.1 Market Risk

₹ in crores
Segment Activities covered  arket the risk that the fair value or future cash flows of financial instruments will fluctuate due to
M
Financing activities Financing and leasing of automobiles, tractors, commercial
changes in market variables such as interest rates, foreign exchange rates, etc. The objective of market
vehicles, SMEs and housing finance. risk management is to manage and control market risk exposures within acceptable parameters, while
maximising the return.
Other reconciling items Insurance broking, asset management services and
trusteeship services
a) Pricing Risk
Income for each segment has been specifically identified. Expenditure, assets and liabilities are either specifically The Group's Investment in Commercial Papers, Certificate of Deposits with Banks and Mutual Funds
identifiable with individual segments or have been allocated to segments on a systematic basis. Based on such are exposed to pricing risk. A 5 percent increase in Net Assets Value (NAV) would increase profit
allocation, segment disclosures relating to revenue, results, assets and liabilities have been prepared. before tax by approximately Rs 108.72 crore (31 st March 2022 : Rs 47.08 crore ). A similar percentage
decrease would have resulted equivalent opposite impact.
Secondary segment (Geographical Segment)
b) Currency Risk
Since the business operations of the Company are primarily concentrated in India, the Company is considered
to operate only in the domestic segment and therefore there is no reportable geographic segment. Currency Risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign
exchange rates. Foreign currency risk arise majorly on account of foreign currency borrowings. The
The following table gives information as required under the Ind AS -108 on Operating Segments: Group's foreign currency exposures are managed within approved parameters. The Group manages
its foreign currency risk by entering into forward contract and cross currency swaps, principal and
interest rate swaps. Other derivative Instruments may be used if deemed appropriate.
₹ in crores
Year ended 31 st March 2023 Year ended 31st March 2022 The carrying amounts of the Group’s foreign currency exposure at the end of the reporting period are
Other Other as follows:
Particulars Financing Financing
reconciling Total reconciling Total
Activities Activities
items items ₹ in crores
External Revenue 12,451.85 426.58 12,878.43 11,134.38 349.90 11,484.28 JPY US Dollar Total

Inter Segment Revenue - - 46.03 - - 83.77 As at 31st March 2023

Net Revenue 12,451.85 426.58 12,832.40 11,134.38 349.90 11,400.51 Financial Assets - - -
Financial Liabilities 1,732.32 818.39 2,550.71
Segment Results 2,757.72 46.04 2,803.76 1,505.17 44.25 1,549.42
(Profit / (Loss) before tax) : As at 31st March 2022
Add : Other unallocable income - - - - - - Financial Assets - - -
net of unallocable expenditure Financial Liabilities 928.75 1,248.77 2,177.52
Net Profit before tax 2,757.72 46.04 2,803.76 1,505.17 44.25 1,549.42
 Foreign Currency Sensitivity
Segment Assets 1,03,109.20 661.27 1,03,770.47 81,602.30 694.55 82,296.85
The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates,
Unallocated corporate assets - - 1,314.30 - - 1,511.80
with all other variables held constant.
Total Assets 1,05,084.77 83,808.65
Segment Liabilities 86,161.14 148.04 86,309.18 66,618.14 125.15 66,743.29 ₹ in crores
Effect on Profit
Other unallocable liabilities - - 74.15 - - 27.59 Currency Change in rate
Before Tax
Total Liabilities 86,383.33 66,770.88 Year ended 31st March 2023 INR / JPY (+/-) 1.00% (+/-) 17.38
INR / USD (+/-) 1.00% (+/-) 8.22
Note: 51 Year ended 31st March 2022 INR / JPY (+/-) 1.00% (+/-) 9.29
INR / USD (+/-) 1.00% (+/-) 12.49
Financial Risk Management Framework
In the course of its business, the Group is exposed to certain financial risks namely credit risk, interest risk,
The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure
currency risk & liquidity risk. The Group's primary focus is to achieve better predictability of financial markets
at the end of the reporting period does not reflect the exposure during the year.
and seek to minimise potential adverse effects on its financial performance.
c) Interest Rate Risk
The financial risks are managed in accordance with the risk management policy which has been approved by the
Board of Directors of the respective Group companies. The Group uses a mix of cash and borrowings to manage the liquidity & fund requirements of its day-
to-day operations. Further, certain interest bearing liabilities carry variable interest rates.
Board of Directors of the Parent and its subsidiary in the housing finance business have established Asset and
Liability Management Committee (ALCO), which is responsible for developing and monitoring risk management Interest Rate risk on variable rate borrowings is managed by way of interest rate swaps,
policies for its business. The financial services business is exposed to high credit risk given the unbanked rural wherever necessary.
customer base and diminishing value of collateral. The credit risk is managed through credit norms established
based on historical experience.

474 Empowering Emerging India INTEGRATED REPORT 2022-23 475

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

Interest Rate sensitivity ₹ in crores

The sensitivity analysis below have been determined based on exposure to financial instruments at Particulars 31st March 2023 31st March 2022
the end of the reporting year. For floating rate liabilities, analysis is prepared assuming the amount of Gross carrying value of Retail loans including Finance Lease
liability outstanding at the end of the reporting year was outstanding for the whole year. Neither Past due nor impaired 62,434.58 42,915.01
Past Due but not impaired :
The following table demonstrates the sensitivity to a reasonably possible change in interest rates 1-30 days past due 4,874.41 4,252.53
on that portion of loans and borrowings affected. With all other variables held constant, the Group’s 31-90 days past due 4,906.91 9,139.39
profit before tax is affected through the impact on floating rate borrowings, as follows: Impaired (more than 90 days) 3,692.32 4,882.62
Total Gross carrying value as at reporting date 75,908.22 61,189.55
₹ in crores

Increase /
Currency decrease in basis
Effect on profit ₹ in crores
before tax
points (Range) Particulars 31st March 2023 31st March 2022
Gross carrying value of Residential loan assets
Year ended 31st March 2023 INR 100 240.27
Neither Past due nor impaired 4,980.01 4,347.18
Year ended 31st March 2022 INR 100 132.75
Past Due but not impaired :
1-30 days past due 386.68 371.54
d) Off-setting of balances 31-90 days past due 1,080.17 2,023.70
The table below summarises the financial liabilities offsetted against financial assets and shown on a Impaired (more than 90 days) 753.07 861.03
net basis in the balance sheet: Total Gross carrying value as at reporting date 7,199.93 7,603.45

Financial assets subject to offsetting

₹ in crores
₹ in crores Particulars 31st March 2023 31st March 2022
Offsetting recognised on the balance sheet Gross carrying value of SME loans including Bills of exchange
Particulars Assets Neither Past due nor impaired 4,331.40 1,912.31
Gross assets Financial liabilities
before offset netted
recognised in Past Due but not impaired :
balance sheet
1-30 days past due 55.05 102.78
Loan assets 31-90 days past due 20.54 80.42
At 31st March,' 2023 79,557.32 102.59 79,454.73 Impaired (more than 90 days) 49.69 44.97
At 31st March,' 2022 60,542.37 97.73 60,444.64 Total Gross carrying value as at reporting date 4,456.68 2,140.48

Financial liabilities subject to offsetting ₹ in crores

Particulars 31st March 2023 31st March 2022
₹ in crores
Gross carrying value of Trade Advances
Offsetting recognised on the balance sheet
Less than 60 days past due 2,480.06 1,682.21
Particulars Gross Liabilities
liabilities
Financial assets
recognised in 61-90 days past due 53.43 64.55
netted
before offset balance sheet Impaired (more than 90 days) 6.93 60.66
Other financial liabilities Total Gross carrying value as at reporting date 2,540.42 1,807.42
At 31st March,' 2023 2,486.87 102.59 2,384.28
At 31st March,' 2022 2,413.90 97.73 2,316.17
₹ in crores
Note : The residential loan businesses has not offset financial assets and financial liabilities.
Particulars 31st March 2023 31st March 2022

51.2 Credit Risk Management Gross carrying value of Financial Investments measured at amortised cost
 redit risk is the risk that the Group will incur a loss because its customers fail to discharge their
C Neither Past due nor impaired 1,446.68 1,538.24
contractual obligations. The Group has a comprehensive framework for monitoring credit quality of Past Due but not impaired :
its retail and other loans based on Days past due monitoring at period end. Repayment by individual 1-30 days past due - -
customers and portfolio is tracked regularly and required steps for recovery are taken through follow 31-90 days past due - -
ups and legal recourse. Impaired (more than 90 days) - -
Total Gross carrying value as at reporting date 1,446.68 1,538.24
Credit quality of financial loans and investments
The following table sets out information about credit quality of loan assets and investments measured The Group reviews the credit quality of its loans based on the ageing of the loan at the period end. Since the
at amortised cost based on days past due information. The amount represents gross carrying amount. group is primarily into retail lending business, there is no significant credit risk of any individual customer
that may impact adversely, and hence the Group has calculated its ECL allowances on a collective basis.

476 Empowering Emerging India INTEGRATED REPORT 2022-23 477

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Inputs considered in the ECL model year ended 31 st March 2022. The Parent and its subsidiary in the housing finance business has been
In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have updating the ECL model with the latest set of data on reasonable periodic intervals and continued the
been segmented into three stages. The three stages reflect the general pattern of credit deterioration of same for the year ended 31 st March 2023, to capture the significant changes in economic and market
a financial instrument. The differences in accounting between stages, relate to the recognition of expected drivers and changes in risk profile of customer credit exposures. Output of ECL model refresh is also
credit losses and the measurement of interest income. factored in computation of provisions. The Parent and its subsidiary in the housing finance business
holds a provision towards expected credit loss on financial assets as at 31 st March 2023 aggregating
The Group categorises loan assets (except trade advances) into stages primarily based on the Days Past to ₹3,652.76 crore (as at 31 st March 2022: ₹ 5,086.93 crore).
Due status.
(iii) Definition of default
Stage 1 : 0-30 days past due The Group considers a financial asset to be in "default" and therefore Stage 3 (credit impaired) for ECL
calculations when the borrower becomes more than 90 past due on its contractual payments.
Stage 2 : 31-90 days past due
(iv) Exposure at default
Stage 3 : More than 90 days "Exposure at Default" (EAD) represents the gross exposure balance when default had occurred. EAD
is subject to impairment calculation for Stage 3 assets. Future Expected Cash flows (Principal and
The Group categorises trade advances into stages primarily based on the Days Past Due status. Interest) for future years has been used as exposure for Stage 2.

Stage 1 : 0-60 days past due (v) Estimations and assumptions considered in ECL model
The Parent Company has made the following assumptions in the ECL Model:
Stage 2 : 61-90 days past due
a) Loss Given Default (LGD):
Stage 3 : More than 90 days
- LGD represents expected losses on the EAD given the event of default, taking into account,
The Group applies the simplified approach to providing for expected credit losses prescribed by Ind AS among other attributes, the mitigating effect of collateral value at the time it is expected to be
109, which permits the use of the lifetime expected loss provision for trade advances, lease and other realised and the time value of money determined based on appropriate discount rate. It is an
receivables. The Group has computed expected credit losses based on a provision matrix which uses estimate of the loss from a transaction given that a default occurred.
historical credit loss experience of the respective businesses.
Generally, common LGD is applied on the exposures in all the three stages.
(i) RBI COVID-19 Resolution Framework
Assessment of loan modifications on credit risk: While, the general approach / methodology remains the same, the measurement of ECL on retail
vehicle loans is done on a slightly differentiated approach as mentioned here below.
During the previous years ended 31 st March 2021 and year ended 31 st March 2022, the Parent and its
subsidiary in the housing finance business had implemented resolution plans in order to provide relief to - For Stage 3 assets with an ageing more than 18 months (540 DPD) (stressed portfolio), provision
borrowers adversely impacted due to onslaught of multiple waves / variants of COVID-19 Pandemic under is calculated by applying LGD at higher rate. Higher LGD rate is determined based on the historical
the resolution framework 1.0 vide circular no. RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 loss that has occurred during the tenor of individual assets forming part of specific portfolio of
dated 6th August 2020 for personal loan customers and resolution framework 2.0 vide circular No. contracts with an ageing of more than 18 months (540 DPD) at the historical period end date
RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-22 dated 5th May 2021. The loan modifications (i.e. 42 months from the reset / reporting date) based on the average life of the portfolio and is
executed under both these schemes have not been classified as renegotiated as they are as a result considered as model provision for ECL calculation;
of market-wide customer relief programme and not borrower-specific. The Parent and its subsidiary in
the housing finance business continues to monitor the recoverability of loans granted in accordance - For Stage 3 assets with an ageing up to 18 months (540 DPD), provision is calculated by applying
with these circulars and is continue to carry adequate provisioning based on the repayment behaviour the Composite LGD rate#;
on these loan accounts.
- For Stage 1 and Stage 2 assets, continue to derive and apply Composite LGD rate in calculation
(ii) Impact of COVID-19 of loss allowances.
The outbreak of COVID-19 led to nationwide lockdown from March 2020, which gradually phased out
over the next few months basis the local level spread of the pandemic. The nation was impacted by #Composite LGD rate : It is an estimate of the loss from a transaction given that a default occurs. It is based on the
historical loss on the portfolio that has occurred during the tenor of the individual assets forming part of the portfolio.
the second wave of the pandemic in the first half of the fiscal year 2022 which again slowed down the For calculating LGD, the Company takes into consideration the Stage 2 assets that have reached 90+ DPD in the past and
economic activities to a limited extent. Despite the successful roll out of vaccines around the world, a Stage 3 cases of historical period end date (i.e. 42 months from the reset / reporting date) based on the average life of
varying degree of uncertainty remained through out the year ended 31 st March 2022. This was caused the portfolio. Actual cash flows pertaining to this portfolio from the first default date to current reset / reporting date
are then discounted at Loan EIR rate for arriving at this loss rate.
by new variants of COVID -19, varying vaccine effectiveness and the need for reimposing of government
- imposed restrictions. This uncertainty is reflected in the Group's assessment of impairment loss
allowance on its loans which are subject to a number of management judgements and estimates. In
relation to COVID-19, judgements and assumptions include the extent and duration of the pandemic,
the changes in the macro economic outlook and its associated impact on the impairment calculations.

The methodologies and assumptions applied in the impairment loss allowance calculations have
primarily remained unchanged from those applied while preparing the financial statements for the

478 Empowering Emerging India INTEGRATED REPORT 2022-23 479

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

b) Probability of Default (PD): ECL allowance = (Gross exposure on reporting date less Required Carrying value-B)
Required Carrying value-B ={EAD less ECL allowance at Higher LGD rate less PV of actual cashflows
- It is an estimate of likelihood or risk of default occurring over a particular time horizon. till reporting date plus interest compounded @ loan EIR}

- The measurement of risk of defaults is computed on homogenous portfolios, generally by nature (vii) Forward Looking Information
of loans, tenors, underlying collateral, geographies and borrower profiles. The default risk is Historical PDs has been converted into forward looking PD which incorporates the forward looking
assessed using PD (probability of default) derived from past behavioural trends of default across economic outlook. Considering that major chunk of borrowers in the retail portfolio is from rural area,
the identified homogenous portfolios. These past trends factor in the past customer behavioural Agriculture (real change % p.a.) is used as a macroeconomic variable. Agriculture (real change % p.a.)
trends, credit transition probabilities and macroeconomic conditions. The assessed PDs are then stands for Percentage change in real agricultural value-added, including livestock, forestry and fishing,
aligned considering future economic conditions that are determined to have a bearing on ECL. over previous year). In case of SME and Bills Discounting portfolio, Real GDP (% change p.a.) is used as
the macroeconomic variable.
- For Stage 1 assets, 12 months PD is considered which represents default events that are possible
within 12 months after the reporting date. The macroeconomic variables considered by the Group are robust reflections of the state of economy
which result into systematic risk for the respective portfolio segments.
- For Stage 2 assets, life time PD is considered which represents default events that are possible
over the expected life / tenor of the financial instrument. Additionally, three different scenarios have been considered for ECL calculation. Along with the actual
numbers (considered for Base case scenario), other scenarios take care of the worsening as well as
- PD is applied on Stage 1 and Stage 2 assets on a portfolio basis; improving forward looking economic outlook.

- For Stage 3 assets, PD is always at 100% as these are impaired assets. (viii) Assessment of significant increase in credit risk
When determining whether the credit risk has increased significantly since initial recognition, the Group
(vi) Measurement of ECL
considers both quantitative and qualitative information and analysis based on the Group’s historical
ECL of the parent company is measured as follows: experience, including forward-looking information. The Group considers reasonable and supportable
information that is relevant and available without undue cost and effort. The Group's accounting policy
- Financial assets that are not credit impaired at the reporting date: is not to use the practical expedient that the financial assets with 'low' credit risk at the reporting
date are deemed not to have had a significant increase in credit risk. As a result the Group monitors
 ECL for Stage 1 : Gross exposure is multiplied by PD and Composite LGD percentage to arrive at all financial assets and loan commitments that are subject to impairment for significant increase in
the ECL allowance; credit risk.

-  inancial assets that have had a significant increase in credit risk (SICR) since initial
F Based on the assessment by the Group, the RBI resolution framework for loan restructuring and
recognition (unless they have low credit risk at the reporting date) but that do not have moratorium relaxation announced in previous years to the borrowers recognising the detrimental
objective evidence of impairment: impact of COVID-19 has not been deemed to be automatically triggering significant increase in credit
risk. The Group continued to recognise interest income during the current and previous year on such
ECL for Stage 2 : Future Expected Cash flows (Principal and Interest) for respective future years cases and in the absence of other credit risk indicators, the granting of a stress resolution framework
is multiplied by respective years Marginal PDs and Composite LGD percentage and thus arrived and moratorium period did not result in accounts becoming past due and automatically triggering
ECL allowance is then discounted with the respective loan EIR to calculate the present value of Stage 2 or Stage 3 classification criteria.
ECL allowance. In addition, in case of Bills discounting and Channel finance, as the average lifetime
is of 90 days, a time to maturity factor of 0.25 is used in the ECL computation. As a part of the qualitative assessment of whether a customer is in default, the Parent company
also considers a variety of instances that may indicate unlikeliness to pay. In such instances, the
- Financial assets that are credit impaired at the reporting date: Parent company treats the customer at default and therefore assesses such loans as Stage 3 for ECL
calculations. Such qualitative factors include: -
ECL for Stage 3: Difference between the gross exposure at reporting date and computed carrying
amount considering EAD net of LGD and PV of actual cash flows till reporting date including A Stage 3 customer having other loans which are in Stage 1 or 2.
compounded interest at loan EIR on net carrying value.
- Not to consider Uncleared cheques as on reporting date for outstanding DPD calculation for
For Stage 3 assets in retail portfolio, ECL allowance is calculated separately as follows: retail vehicle loans

- Stage 3 assets with ageing up to 18 months (< =540 DPD) - Retail vehicle loans, where asset has been repossessed.

ECL allowance = (Gross exposure on reporting date less Required Carrying value-A) - Cases where Group suspects fraud and legal proceedings are initiated.

Required Carrying value-A ={EAD less ECL allowance at Composite LGD rate less PV of actual - SME loans where the Group has resorted to its rights under the SARFAESI Act.
cashflows till reporting date plus interest compounded @ loan EIR}
Further, the Group classifies certain category of exposures in to Stage 3 and makes accelerated
- Stage 3 assets with ageing more than 18 months (>540 DPD) provision upto 100% based on qualitative assessment implying the significant deterioration in asset
quality or increase in credit risk on selective basis.

480 Empowering Emerging India INTEGRATED REPORT 2022-23 481

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

The Company regularly reviews it's ECL model based on actual loss experience and update the Impairment loss
parameters used for ECL calculations. The expected credit loss allowance provision for Retail Loans including Finance lease is determined
as follows:
(ix) Policy for write off of Loan Assets
The gross carrying amount of a financial asset is written off when there is no realistic prospect of ₹ in crores
further recovery. This is generally the case when the Group determines that the debtor does not have Performing Underperforming Impaired loans
Loans - 12 loans - 'lifetime ECL - 'lifetime ECL Total
assets or sources of income that could generate sufficient cash flows to repay the amounts subject month ECL not credit impaired' credit impaired'
to the write- off. However, financial assets that are written off could still be subject to enforcement
Gross Balance as at 31st March 2023 67,308.99 4,906.91 3,692.32 75,908.22
activities under the Group’s recovery procedures, taking into account legal advice where appropriate.
Any recoveries made from written off assets are netted off against the amount of financial assets Expected credit loss rate 0.76% 10.60% 58.63%
written off during the year under "Bad debts and write offs" forming part of "Impairment on financial Carrying amount as at 31st March 2023 66,796.72 4,386.82 1,527.43 72,710.97
instruments" in Statement of profit and loss. (net of impairment provision)
Gross Balance as at 31st March 2022 47,167.54 9,139.39 4,882.62 61,189.55
(x) Analysis of inputs to the ECL model of Retail Loan with respect to macro economic variable Expected credit loss rate 0.91% 12.68% 57.34%
The below table shows the values of the forward looking macro economic variable used in each of Carrying amount as at 31st March 2022 46,739.32 7,980.45 2,082.76 56,802.53
the scenarios for the ECL calculations. For this purpose, the Group has used the data source of (net of impairment provision)
Economist Intelligence Unit. The upside and downside % change has been derived using historical
standard deviation from the base scenario based on previous 8 years change in the variable. Analysis of inputs to the ECL model of Residential Loan with respect to macro economic variable
(Continued)
ECL scenario for Macro Economic Variable The expected credit loss allowance provision for Residential Loans is determined as follows:
₹ in crores
Upside Base Downside
₹ in crores
Year
% % % Performing Underperforming Impaired loans
Loans - 12 loans - 'lifetime ECL - 'lifetime ECL Total
Probability Assigned 0 85 15 month ECL not credit impaired' credit impaired'
Agriculture ( % real change p.a.) 2023 6.9 4.7 1.6 Gross Balance as at 31st March 2023 5,366.69 1,080.17 753.07 7,199.93
2024 7.7 5.3 2.4 Expected credit loss rate 0.97% 8.75% 27.60%
2025 7.1 4.8 1.8 Carrying amount as at 31st March 2022 (net 5,314.40 985.62 545.22 6,845.24
2026 7.6 5.2 2.3 of impairment provision)
2027 6.7 4.5 1.4
Real GDP ( % change p.a.) 2023 10.9 6.0 1.1 Gross Balance as at 31st March 2023 4,718.72 2,023.70 861.03 7,603.45
2024 11.1 6.2 1.3 Expected credit loss rate 2.01% 11.99% 27.54%
2025 11.4 6.5 1.6 Carrying amount as at 31st March 2022 (net 4,623.90 1,781.06 623.88 7,028.84
2026 11.5 6.6 1.7 of impairment provision)
2027 11.0 6.1 1.2
The expected credit loss allowance provision for SME Loans including Bills of exchange is determined
as follows:
(xi) Analysis of inputs to the ECL model of Residential Loan with respect to macro economic variable
₹ in crores
ECL scenario for Macro Economic Variable Performing Underperforming Impaired loans
Loans - 12 loans - 'lifetime ECL - 'lifetime ECL Total
₹ in crores month ECL not credit impaired' credit impaired'
Upside Base Downside
Year
% % %
Gross Balance as at 31st March 2023 4,386.46 20.53 49.69 4,456.68

Probability Assigned 10% 65% 25% Expected credit loss rate 0.36% 9.55% 57.10%

Agriculture ( % real change p.a.) 2022 5.9 3.4 0.9 Carrying amount as at 31st March 2023 (net 4,370.63 18.57 21.32 4,410.51
of impairment provision)
2023 6.9 4.4 1.9
Gross Balance as at 31st March 2022 2,015.09 80.42 44.97 2,140.48
2024 5.9 3.4 0.9
Expected credit loss rate 0.37% 13.70% 51.93%
2025 6.9 4.4 1.9
Carrying amount as at 31st March 2022 (net 2,007.67 69.40 21.62 2,098.69
2026 6.6 4.1 1.6 of impairment provision)
2027 7.5 4.9 2.4
2028 5.6 3.0 0.5
Subsequent 6.7 4.1 1.6
Years

482 Empowering Emerging India INTEGRATED REPORT 2022-23 483

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

The expected credit loss allowance provision for Trade Advances is determined as follows: Gross exposure reconciliation
₹ in crores ₹ in crores
Credit impaired Particulars Stage 1 Stage 2 Stage 3 Total
Less than 60
61-90 days past due (more than 90 Total - Loans that have been derecognised during the (7,686.92) (3,097.37) (1,371.14) (12,155.43)
days past due
days) period
Gross Balance as at 31st March 2023 2,480.06 53.43 6.93 2,540.42 New loans originated during the year 23,937.10 3,879.31 509.95 28,326.36
Expected credit loss rate 0.40% 5.96% 100.00% Write-offs (4.61) (52.89) (1,495.37) (1,552.87)
Carrying amount as at 31st March 2023 2,470.14 50.25 - 2,520.39 Impact of changes on items within the same stage (12,916.75) (2,145.54) (126.50) (15,188.79)
(net of impairment provision) Gross carrying amount balance as at 47,167.53 9,139.39 4,882.62 61,189.54
Gross Balance as at 31st March 2022 1,682.21 64.55 60.66 1,807.42 31st March 2022
Expected credit loss rate 0.40% 6.73% 100.00% Changes in opening balance due to currency (5.43) (1.01) (0.68) (7.12)
fluctuation
Carrying amount as at 31st
March 2022 1,675.48 60.21 - 1,735.69
Addition due to business combination - - - -
(net of impairment provision)
Changes due to loans recognised in the opening
balance that have:
The contractual amount outstanding for trade advance that has been written off by the Group during - Transfers to Stage 1 2,556.95 (2,332.49) (224.46) -
the year ended 31 st March 2023 and that were still subject to enforcement activity was Rs 56.64 - Transfers to Stage 2 (2,492.18) 2,602.10 (109.92) -
crore (31 st March 2022: Nil ). - Transfers to Stage 3 (809.78) (1,211.26) 2,021.04 -
The expected credit loss allowance provision for Financial Investments measured at amortised cost is - Loans that have been derecognised during the (6,906.22) (2,200.86) (1,593.71) (10,700.79)
determined as follows: period
New loans originated during the year 40,720.61 695.36 231.84 41,647.81
₹ in crores Write-offs (8.49) (29.73) (1,354.93) (1,393.15)
Performing Underperforming Impaired loans Impact of changes on items within the same stage (12,892.24) (1,754.59) (159.49) (14,806.32)
Loans - 12 loans - 'lifetime ECL - 'lifetime ECL Total
month ECL not credit impaired' credit impaired' Write down of identified assets as a result of (21.75) - - (21.75)
impairment loss provision against equity investment
Gross Balance as at 31st March 2023 1,446.68 - - 1,446.68
in a subsidiary
Expected credit loss rate 0.07%
Gross carrying amount balance as at 67,309.00 4,906.91 3,692.31 75,908.22
Carrying amount as at 31st March 2023 (net 1,445.69 1,445.69
31st March 2023
of impairment provision)
Gross Balance as at 31st March 2022 1,538.24 - - 1,538.24
Expected credit loss rate 0.52%
Reconciliation of ECL balance
Carrying amount as at 31st March 2022 (net 1,530.21 1,530.21
of impairment provision) ₹ in crores
Particulars Stage 1 Stage 2 Stage 3 Total
Level of Assessment - Aggregation Criteria ECL allowance balance as at 31st March 2021 410.72 864.91 3,268.98 4,544.61
The Group recognises the expected credit losses (ECL) on a collective basis that takes into account Changes due to loans recognised in the opening
comprehensive credit risk information. balance that have:
- Transfers to Stage 1 386.93 (148.75) (238.18) -
Considering the economic and risk characteristics, pricing range, sector concentration, the Group - Transfers to Stage 2 (41.49) 168.09 (126.60) -
calculates ECL on a collective basis for all stages - Stage 1, Stage 2 and Stage 3 assets. - Transfers to Stage 3 (10.09) (122.48) 132.57 -
- Loans that have been derecognised during the (65.35) (335.99) (788.36) (1,189.70)
An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to period
Retail Loans including Finance Lease is, as follows: New loans originated during the year 216.59 491.58 291.46 999.63
Write-offs (0.04) (5.76) (860.46) (866.26)
Impact of changes on items within the same stage (469.30) 247.33 1,124.83 902.86
Gross exposure reconciliation
ECL allowance balance as at 31st March 2022 427.97 1,158.93 2,804.24 4,391.14
₹ in crores Changes in opening balance due to currency (0.08) (0.04) (0.11) (0.23)
Particulars Stage 1 Stage 2 Stage 3 Total fluctuation
Gross carrying amount balance as at 31st March 48,010.22 7,947.58 5,681.06 61,638.86 Change due to business combination - - - -
2021 Changes due to loans recognised in the opening
Addition due to business combination 75.43 28.54 17.44 121.41 balance that have:
Changes due to loans recognised in the opening - Transfers to Stage 1 424.22 (296.09) (128.13) -
balance that have: - Transfers to Stage 2 (22.95) 85.11 (62.16) -
- Transfers to Stage 1 1,773.97 (1,361.45) (412.52) - - Transfers to Stage 3 (7.55) (153.54) 161.08 -
- Transfers to Stage 2 (4,844.77) 5,062.72 (217.95) - - Loans that have been derecognised during the (62.89) (277.99) (910.83) (1,251.70)
- Transfers to Stage 3 (1,176.14) (1,121.51) 2,297.65 - period
New loans originated during the year 322.46 71.36 135.90 529.72
Write-offs (0.08) (3.78) (780.61) (784.47)

484 Empowering Emerging India INTEGRATED REPORT 2022-23 485

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

Reconciliation of ECL balance Reconciliation of ECL balance on Residential Loans

₹ in crores ₹ in crores
Particulars Stage 1 Stage 2 Stage 3 Total Particulars Stage 1 Stage 2 Stage 3 Total
Impact of changes on items within the same stage (546.14) (64.02) 954.06 343.90 New loans originated during the year 14.25 3.81 0.06 18.12
ECL allowance balance as at 31st March 2023 534.97 519.94 2,173.45 3,228.36 Write-offs - - (75.67) (75.67)
Impact of changes on items within the same stage (20.40) 120.16 100.24 200.00
The contractual amount outstanding on financial assets that has been written off by the Company ECL allowance balance as at 31st March 2022 94.82 242.65 237.14 574.61
during the year ended 31 st March 2023 and that were still subject to enforcement activity was Rs Changes due to loans recognised in the opening
1395.13 crore (31 st March 2022: Rs 1638.80 crore ). balance that have:
- Transfers to Stage 1 (27.81) 23.41 4.40 -
The overall decrease in ECL allowance on the portfolio was driven by movements between stages and - Transfers to Stage 2 60.50 (103.89) 43.39 -
higher amount of write offs. - Transfers to Stage 3 8.61 7.23 (15.84) -
- Loans that have been derecognised during the period (9.89) (25.18) (70.66) (105.73)
  n analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
A New loans originated during the year 16.40 0.64 0.13 17.17
Residential Loans is, as follows: Write-offs (0.01) - (69.43) (69.44)
Impact of changes on items within the same stage (90.33) (50.31) 78.70 (61.94)
Gross exposure reconciliation ECL allowance balance as at 31st March 2023 52.29 94.55 207.83 354.68
₹ in crores
The decrease in ECL of the portfolio was on account of better recoveries during the year and
Particulars Stage 1 Stage 2 Stage 3 Total
appropriation of ECL provision of written off assets.
Gross carrying amount balance as at 4,552.00 2,088.78 1,005.93 7,646.71
31st March 2021 The contractual amount outstanding on financial assets that have been written off during the year
Changes due to loans recognised in the opening ended 31 st March 2023 and are under enforcement activity was ₹ 168.26 crores (31 st March 2022 :
balance that have: ₹ 102.75 crores)
- Transfers to Stage 1 (875.80) 804.34 71.46 -
- Transfers to Stage 2 610.26 (764.50) 154.24 - An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
- Transfers to Stage 3 23.88 9.99 (33.87) - SME Loans including Bills of exchange is, as follows:
- Loans that have been derecognised during the period (373.97) (108.62) (208.66) (691.25)
New loans originated during the year 1,315.48 40.33 0.25 1,356.06 Gross exposure reconciliation
Write-offs - - (205.54) (205.54) ₹ in crores
Impact of changes on items within the same stage (533.14) (46.60) 77.21 (502.53) Particulars Stage 1 Stage 2 Stage 3 Total
Gross carrying amount balance as at 4,718.71 2,023.72 861.02 7,603.45 Gross carrying amount balance as at 31st March 1,580.84 138.98 38.02 1,757.84
31st March 2022 2021
Changes due to loans recognised in the opening Changes due to loans recognised in the opening
balance that have: balance that have:
- Transfers to Stage 1 (406.19) 314.15 92.04 - - Transfers to Stage 1 30.73 (30.03) (0.70) -
- Transfers to Stage 2 516.22 (850.62) 334.40 - - Transfers to Stage 2 (38.10) 38.67 (0.57) -
- Transfers to Stage 3 30.71 28.73 (59.44) - - Transfers to Stage 3 (13.23) (11.68) 24.91 -
- Loans that have been derecognised during the period (498.32) (210.11) (202.75) (911.18) - Loans that have been derecognised during the (1,041.81) (38.27) (1.33) (1,081.41)
New loans originated during the year 1,668.39 7.35 0.52 1,676.26 period
Write-offs (0.42) - (299.83) (300.25) New loans originated during the year 1,705.78 8.84 0.22 1,714.83
Impact of changes on items within the same stage (662.41) (233.02) 27.08 (868.35) Write-offs (0.03) - (13.28) (13.31)
Gross carrying amount balance as at 5,366.69 1,080.20 753.04 7,199.93 Impact of changes on items within the same stage (209.09) (26.09) (2.30) (237.48)
31st March 2023 Gross carrying amount balance as at 31st March 2,015.08 80.42 44.97 2,140.48
2022
Changes due to loans recognised in the opening
Reconciliation of ECL balance on Residential Loans balance that have:
₹ in crores - Transfers to Stage 1 53.12 (52.62) (0.50) -
Particulars Stage 1 Stage 2 Stage 3 Total - Transfers to Stage 2 (14.93) 15.36 (0.43) -
ECL allowance balance as at 31st March 2021 61.06 178.60 278.94 518.60 - Transfers to Stage 3 (8.22) (6.08) 14.30 -
Changes due to loans recognised in the opening - Loans that have been derecognised during the (1,237.62) (14.16) (3.34) (1,255.12)
period
balance that have:
New loans originated during the year 3,871.68 4.71 2.18 3,878.57
- Transfers to Stage 1 (13.65) 12.51 1.14 -
Write-offs - (1.69) (5.16) (6.85)
- Transfers to Stage 2 52.15 (65.35) 13.20 -
Impact of changes on items within the same stage (292.67) (5.41) (2.32) (300.40)
- Transfers to Stage 3 6.14 2.24 (8.38) -
Gross carrying amount balance as at 31st March 4,386.44 20.53 49.70 4,456.68
- Loans that have been derecognised during the period (4.73) (9.32) (72.40) (86.45)
2023

486 Empowering Emerging India INTEGRATED REPORT 2022-23 487

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

Reconciliation of ECL balance Gross exposure reconciliation

₹ in crores ₹ in crores
Particulars Stage 1 Stage 2 Stage 3 Total Particulars Stage 1 Stage 2 Stage 3 Total
ECL allowance balance as at 31st March 2021 5.76 12.60 16.24 34.60 Exposure derecognised or matured / lapsed (470.21) (4.63) (0.07) (474.91)
Changes due to loans recognised in the opening (excluding write-offs)
balance that have: - Transfers to Stage 1 (0.04) 0.03 0.00 -
- Transfers to Stage 1 2.98 (2.57) (0.41) - - Transfers to Stage 2 0.14 (0.14) - -
- Transfers to Stage 2 (0.20) 0.53 (0.33) - - Transfers to Stage 3 - - - -
- Transfers to Stage 3 (0.10) (1.12) 1.22 - Write-offs - - - -
- Loans that have been derecognised during the (2.12) (3.51) (0.95) (6.58) Impact of changes on items within the same stage (13.21) (0.01) (0.00) (13.22)
period Gross carrying amount balance as at 31st March 504.99 0.06 (0.00) 505.05
New loans originated during the year 5.49 0.61 0.15 6.25 2023
Write-offs - - (5.89) (5.89)
Impact of changes on items within the same stage (4.38) 4.49 13.31 13.42
ECL allowance balance as at 31st March 2022 7.43 11.03 23.34 41.80 Reconciliation of ECL balance on loan commitments
Changes due to loans recognised in the opening ₹ in crores
balance that have: Particulars Stage 1 Stage 2 Stage 3 Total
- Transfers to Stage 1 7.33 (6.93) (0.40) -
ECL allowance balance as at 31st March 2021 5.26 0.78 0.01 6.05
- Transfers to Stage 2 (0.11) 0.46 (0.35) -
Changes due to loans recognised in the opening
- Transfers to Stage 3 (0.06) (1.39) 1.45 -
balance that have:
- Loans that have been derecognised during the (2.08) (1.62) (2.43) (6.14)
period New Exposures 3.22 0.36 0.00 3.58
New loans originated during the year 13.78 0.35 1.37 15.50 Exposure derecognised or matured / lapsed (1.18) - - (1.18)
Write-offs - (0.23) (3.28) (3.51) (excluding write-offs)
Impact of changes on items within the same stage (10.44) 0.32 8.67 (1.46) - Transfers to Stage 1 (0.01) 0.01 - -
ECL allowance balance as at 31st March 2023 15.85 1.98 28.36 46.19 - Transfers to Stage 2 0.01 (0.01) - -
- Transfers to Stage 3 - - - -
The contractual amount outstanding on financial assets that has been written off by the Group during - Loans that have been derecognised during the (3.99) (0.76) (0.01) (4.76)
the year ended 31 st March 2023 and that were still subject to enforcement activity was ₹ 7.46 crore period
(31 st March 2022: ₹14.72 crore). Impact of changes on items within the same stage (0.07) 0.02 0.01 (0.03)
ECL allowance balance as at 31st March 2022 3.24 0.40 0.02 3.66
The increase in ECL of the portfolio was driven by increase in the gross size of the portfolio.
Changes due to loans recognised in the opening
balance that have:
An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
New Exposures 3.77 0.00 - 3.77
other undrawn commitments of Retail and Residential loans is, as follows:
Exposure derecognised or matured / lapsed - - - -
Gross exposure reconciliation (excluding write-offs)
₹ in crores - Transfers to Stage 1 (0.00) 0.00 - -
Particulars Stage 1 Stage 2 Stage 3 Total - Transfers to Stage 2 0.01 (0.01) - -
Gross carrying amount balance as at 31st March 425.16 10.76 0.04 435.96 - Transfers to Stage 3 - - - -
2021 - Loans that have been derecognised during the (3.17) (0.39) (0.02) (3.58)
Changes due to loans recognised in the opening period
balance that have: Impact of changes on items within the same stage (0.06) 0.00 0.00 (0.05)
New Exposures 467.63 4.29 0.01 471.94 ECL allowance balance as at 31st March 2023 3.79 0.01 0.00 3.80
Exposure derecognised or matured / lapsed (407.21) (10.53) (0.05) (417.78)
(excluding write-offs) The increase in ECL of the portfolio was driven by an increase in the size of the portfolio, movements
- Transfers to Stage 1 (1.01) 0.90 0.11 - between stages as a result of increases in credit risk and due to deterioration in economic conditions.
- Transfers to Stage 2 0.09 (0.10) 0.01 -
- Transfers to Stage 3 - - - - 
An analysis of changes in the gross carrying amount and the corresponding ECLs in relation to
Write-offs - - - - Financial Investments measured at amortised cost is, as follows:
Impact of changes on items within the same stage (11.73) (0.57) (0.06) (12.36)
Gross carrying amount balance as at 31st March 472.93 4.76 0.06 477.75
2022
Changes due to loans recognised in the opening
balance that have:
New Exposures 515.39 0.05 - 515.43

488 Empowering Emerging India INTEGRATED REPORT 2022-23 489

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

Gross exposure reconciliation Significant changes in the gross carrying value that contributed to change in loss allowance
₹ in crores The Group mostly provide loans to retail individual customers in Rural and Semi urban area which is of
Particulars Stage 1 Stage 2 Stage 3 Total small ticket size. Change in any single customer repayment will not impact significantly to companies
Gross carrying amount balance as at 31st March 3,787.25 - - 3,787.25 provisioning. All customers are being monitored based on past due and corrective actions are taken
2021 accordingly to limit the companies risk.
Changes due to loans recognised in the opening
balance that have: Concentration of Credit Risk
- Transfers to Stage 1 - - - - Group's loan portfolio is predominantly to finance retail automobile and home loans. The Group
- Transfers to Stage 2 - - - - manages concentration of risk primarily by geographical region in India. The following tables show the
- Transfers to Stage 3 - - - - geographical concentrations of loans and trade advances:
- Investments that have been derecognised during (2,481.44) - - (2,481.44)
the period
New Investments originated during the year 237.29 - - 237.29 ₹ in crores
Write-offs - - - - As at As at
Particulars
31st March 2023 31st March 2022
Impact of changes on items within the same stage (4.85) - - (4.85)
Gross carrying amount balance as at 31st March 1,538.24 - - 1,538.24 Concentration by Geographical region in India:
2022 North 26,095.42 19,872.13
Changes due to loans recognised in the opening East 18,071.95 16,387.78
balance that have: West 26,392.00 20,065.25
- Transfers to Stage 1 - - - -
South 19,361.37 16,223.47
- Transfers to Stage 2 - - - -
89,920.74 72,548.63
- Transfers to Stage 3 - - - -
Concentration by Geographical region outside India:
- Investments that have been derecognised during (496.66) - - (496.66)
the period Sri Lanka 184.51 192.27
New Investments originated during the year 412.43 - - 412.43 184.51 192.27
Write-offs - - - - Total Gross Carrying Value 90,105.25 72,740.90
Impact of changes on items within the same stage (7.33) - - (7.33)
Gross carrying amount balance as at 1,446.68 - - 1,446.68 Maximum Exposure to credit Risk
31st March 2023
The maximum exposure to credit risk of loans and investment securities is their carrying amount. The
maximum exposure is before considering the effect of mitigation through collateral.
Reconciliation of ECL balance
₹ in crores Narrative Description of Collateral
Particulars Stage 1 Stage 2 Stage 3 Total Collateral primarily include vehicles purchased by retail loan customers, residential property in case
ECL allowance balance as at 31st March 2021 0.41 - - 0.41 of housing loan and machinery & property in case of SME customers. The financial investments are
Changes due to loans recognised in the opening secured by way of a first ranking pari-passu and charge created by way of hypothecation on the
balance that have: receivables of the other company.
- Transfers to Stage 1 - - - -
- Transfers to Stage 2 - - - - Quantitative Information of Collateral
- Transfers to Stage 3 - - - - The Group monitors its exposure to retail loan portfolio using the Loan To Value (LTV) ratio, which is
- Investments that have been derecognised during (0.41) - - (0.41) calculated as the ratio of the gross amount of the loan to the value of the collateral. The value of the
the period collateral for Retail loans is derived by writing down the asset cost at origination by 20% p.a. on reducing
New Investments originated during the year 1.61 - - 1.61 balance basis and the value of the collateral of Stage 3 Retail loans is based on the Blue Book value for
Write-offs - - - - the particular asset. The value of collateral of SME loans is based on fair market value of the collaterals
Impact of changes on items within the same stage - - - - held. The value of the collateral for residential housing loans is typically based on the collateral value
ECL allowance balance as at 31st March 2022 1.61 - - 1.61 at origination.
Changes due to loans recognised in the opening
balance that have:
- Transfers to Stage 1 - - - - Gross value of total secured loans to value of collateral
- Transfers to Stage 2 - - - - ₹ in crores
- Transfers to Stage 3 - - - - Gross Value of Secured Gross Value of total Gross Value of Secured
- Investments that have been derecognised during (1.61) - - (1.61) Retail loans Residential loans SME loans
Loan To Value
the period 31st March 31st March 31st March 31st March 31st March 31st March
New Investments originated during the year 0.98 - - 0.98 2023 2022 2023 2022 2023 2022
Write-offs - - - - Upto 50% 5,565.97 5,226.36 2,698.13 2,971.56 1,088.20 606.87
Impact of changes on items within the same stage - - - - 51 - 70% 11,265.45 9,615.55 2,684.80 3,076.49 724.50 229.98
ECL allowance balance as at 31st March 2023 0.98 - - 0.98

490 Empowering Emerging India INTEGRATED REPORT 2022-23 491

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial
st
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

Gross value of total secured loans to value of collateral 51.3 Liquidity Risk Management
₹ in crores Ultimate responsibility for liquidity risk management rests with the board of directors, which has established
Asset and Liability Management Committee (ALCO) for the management of the Company’s short, medium
Gross Value of Secured Gross Value of total Gross Value of Secured
Retail loans Residential loans SME loans and long-term funding and liquidity management requirements. The Company manages liquidity risk
Loan To Value by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
31st March 31st March 31st March 31st March 31st March 31st March
2023 2022 2023 2022 2023 2022 monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
71 - 100% 44,018.02 32,330.64 1,816.01 1,554.07 1,014.19 51.12 liabilities. The holding company also provides credit lines to its subsidiaries as and when necessary.
Above 100% 14,211.19 13,190.63 - - 81.41 29.46
a) Maturity profile of non-derivative financial liabilities
75,060.63 60,363.18 7,198.94 7,602.12 2,908.30 917.43
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up
based on the undiscounted contractual cash flows of financial liabilities based on the earliest date on
Gross value of credit impaired loans to value of collateral which the Group can be required to pay. The tables include both interest and principal cash flows.
₹ in crores
Gross Value of Retail loans in Gross Value of Residential Gross Value of SME loans in To the extent that interest flows are floating rate, the undiscounted amount is derived from interest
stage 3 loans in stage 3 stage 3 rate curves at the end of the reporting period. The contractual maturity is based on the earliest date
Loan To Value
31st March 31st March 31st March 31st March 31st March 31st March on which the Group may be required to pay.
2023 2022 2023 2022 2023 2022
Upto 50% 54.48 186.38 323.39 298.54 14.92 13.60
₹ in crores
51 - 70% 82.86 177.19 329.64 424.91 0.89 22.23
Less than 1 3 Years to 5 5 years and
Particulars 1-3 Years
71 - 100% 265.64 506.24 100.04 137.58 21.71 0.26 Year Years above

Above 100% 3,289.33 4,012.82 - 0.00 12.17 8.88 Non-derivative financial liabilities
31-Mar-23
3,692.31 4,882.63 753.07 861.03 49.69 44.97
Trade Payable : 1,286.01 - - -
Debt Securities :
Quantitative Information of Collateral
- Principal 10,475.26 9,746.75 1,687.65 6,223.10
The below tables provide an analysis of the current fair values of collateral held for stage 3 assets. The - Interest 2,554.59 2,437.14 1,294.43 2,010.91
value of collateral has not been considered while recognising the loss allowances. Borrowings (Other than Debt Securities) :
- Principal 17,629.18 19,946.64 6,570.28 17.86
- Interest 2,561.61 2,444.77 419.22 0.57
Fair value of collateral held against Credit Impaired assets
Deposit :
₹ in crores
- Principal 1,890.92 3,145.28 439.77 -
Fair value of collateral held against Credit Impaired assets
- Interest 406.76 676.69 141.39 -
Book Debts,
Maximum
Inventory
Subordinated liabilities :
31-Mar-23 exposure Plant and Land and Surplus Total Net Associated
to Credit
Vehicles
Machinery Building
and other
Collateral Collateral Exposure ECL - Principal 140.14 519.32 1,587.25 1,678.73
Working
Risk
Capital items - Interest 335.31 622.12 505.64 561.00
Retail Loans 3,692.31 2,184.15 - - - (220.15) 1,964.00 1,728.31 2,173.45 Other financial liabilities : 2,376.27 319.39 136.60 149.92
Total 39,656.03 39,858.10 12,782.22 10,642.08
Residential Loans 753.07 - - 1,661.32 - (918.23) 743.10 9.97 207.83
31-Mar-22
SME Loans 49.69 1.00 37.45 109.41 0.76 (109.10) 39.52 10.17 28.36
Trade Payable : 1,163.83 - - -
Debt Securities :
- Principal 5,338.31 9,669.81 2,712.90 3,923.10
Fair value of collateral held against Credit Impaired assets - Interest 1,574.04 2,133.08 968.79 1,453.20
₹ in crores Borrowings (Other than Debt Securities) :
Fair value of collateral held against Credit Impaired assets - Principal 12,337.00 14,151.05 2,117.38 53.68
Maximum
Book Debts, - Interest 1,014.57 1,032.21 109.15 3.50
31-Mar-22 Inventory
exposure Plant and Land and Surplus Total Net Associated Deposit :
Vehicles and other
to Credit Machinery Building Collateral Collateral Exposure ECL
Working - Principal 4,727.12 3,146.05 433.96 -
Risk
Capital items
- Interest 730.46 598.62 80.95 -
Retail Loans 4,882.63 3,832.52 - - - (694.56) 3,137.97 1,744.67 2,804.24
Subordinated liabilities :
Residential Loans 861.03 - - 1,726.54 - (885.37) 841.18 19.85 237.14
- Principal 70.00 424.46 1,290.01 1,830.98
SME Loans 44.97 1.80 40.90 76.47 1.85 (83.07) 37.94 7.03 23.34 - Interest 312.24 599.14 606.52 537.15
Other financial liabilities : 2,331.65 413.55 91.27 38.36
Total 29,599.21 32,167.97 8,410.91 7,839.98

492 Empowering Emerging India INTEGRATED REPORT 2022-23 493

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

b) Maturity profile of derivative financial liabilities 51.4 a) Financial Instruments regularly measured using Fair Value - recurring items
The following table details the Company’s liquidity analysis for its derivative financial instruments. The
table has been drawn up based on the undiscounted gross inflows and outflows on those derivatives ₹ in crores
that require gross settlement. There is no derivative instruments that is settled on a net basis. When Fair Value
Significant
Relationship
of
the amount payable or receivable is not fixed, the amount disclosed has been determined by reference Type of Financial
As at As at Fair value Valuation
unobservable
unobservable
assets / Key inputs input(s)
to the projected interest rates as illustrated by the yield curves at the end of the reporting period. Instrument
financial
Category 31st March 31st March hierarchy technique(s)
for level 3
inputs to fair
2023 2022 value and
liabilities hierarchy
sensitivity
1) Foreign Financial Financial (35.87) (38.70) Level 2 Discounted Future cash flows are
₹ in crores currency Assets / Instruments Cash Flow estimated based on
Less than 1 3 Years to 5 5 years and forwards, (Liabilities) measured forward exchange rates
Particulars 1-3 Years Interest rate at FVTPL / (from observable forward
Year Years above FVOCI exchange rates at the end
swaps &
Derivative financial instruments commodity of the reporting period)
derivatives and contract forward
31-Mar-23 rates, discounted at a rate
that reflects the credit
Gross settled: risk of various counter
parties.
Foreign exchange forward contracts
2) Currency Financial Financial (144.83) (116.90) Level 2 Black Scholes Strike rate, spot rate, time
- Payable 0.13 20.65 - - options Assets / Instruments valuation to maturity, volatility and
(Liabilities) measured model risk free interest rate
- Receivable - - - - at FVTPL
Interest Rate swaps 3) Investment Financial Financial 220.88 1,387.02 Level 1 Quoted
in Mutual Assets instrument market price
- Payable - 23.61 - - measured
Funds
- Receivable - - - - at FVTPL

Currency swaps 4) Investment Financial Financial 94.12 - Level 1 Quoted

in Commercial Assets instrument market price
- Payable 50.09 101.83 - - Paper measured
at FVTPL
- Receivable - - - -
5) Investment Financial Financial 1,973.02 - Level 1 Quoted
Total Payable 50.22 146.09 - - in Certificate Assets instrument market price
of deposits measured
Total Receivable - - - - with banks at FVTPL
31-Mar-22 6) Investment Financial Financial 0.06 0.24 Level 3 Cost
in equity Assets instrument
Gross settled: instruments- designated
Foreign exchange forward contracts Unquoted at FVOCI

- Payable 37.17 - - - 7) Investment Financial Financial 42.39 42.39 Level 3 Discounted The discounted cash flow Terminal growth Increase or
in equity Assets instrument Cash Flow method used the future rate, Weighted decrease
- Receivable - - - - instruments- designated free cash flows of the average cost of in multiple
Unquoted at FVOCI Company, discounted by capital. will result in
Interest Rate swaps firm's WACC plus a risk increase or
factor measured by beta, decrease in
- Payable 2.67 - - - to arrive at the present valuation.
- Receivable - - - - value. The key inputs
includes projection of
Currency swaps financial statements (key
value driving factors), the
- Payable - 48.93 102.62 - cost of capital to discount
the projected cash flows.
- Receivable 27.43 - - -
8) Investment Financial Financial 5,237.96 4,746.41 Level 1 Quoted
Total Payable 39.84 48.93 102.62 - in Bonds and Assets instrument market price
Govt securities. measured
Total Receivable 27.43 - - - at FVOCI

The company doesn’t carry any financial asset or liability which it fair values on a non recurring basis.

b) Reconciliation of Level 3 fair value measurements of financial instruments measured at fair

value

₹ in crores
Unquoted
Convertible
Particulars Equity Total
debentures
investment
31st March 2023
Opening balance 42.38 - 42.38
Total gains or losses recognised:
In Profit or loss
a) in profit or loss - - -

494 Empowering Emerging India INTEGRATED REPORT 2022-23 495

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

₹ in crores ₹ in crores
Unquoted Carrying Fair value
Convertible Particulars Fair value
Particulars Equity Total Value
debentures Level 1 Level 2 Level 3
investment
f) Other financial assets 1,663.92 1,719.68 - 1,719.68 -
b) in other comprehensive income - - -
Total 93,730.95 93,326.41 5,382.06 1,962.43 85,981.92
Fair value of -
Financial liabilities
Purchases made during the year - - -
a) Trade Payables 1,286.01 1,286.01 - 1,286.01 -
Disposals made during the year b) Debt securities 27,912.79 28,512.10 28,512.10 - -
Transfers into Level 3 c) Borrowings other than debt securities 44,154.40 44,430.39 - 44,430.39 -
Transfers out of Level 3 d) Deposits 5,458.74 5,871.17 - 5,871.17 -
Closing balance 42.38 - 42.38 e) Subordinated Liabilities 3,902.63 3,937.59 3,937.59 - -
31st March 2022 f) Other financial liability 2,965.53 2,768.25 - 2,768.25 -
Opening balance 16.37 - 16.37 Total 85,680.10 86,805.52 32,449.69 54,355.83 -
As at 31st March 2022
Total gains or losses recognised:
Financial assets
In Profit or loss
a) Cash and cash equivalent 765.32 765.32 765.32 - -
a) in profit or loss b) Bank balances other than cash and cash 4,062.29 4,062.29 4,062.29 - -
b) in other comprehensive income 26.01 - 26.01 equivalent
Fair value of - c) Trade Receivables 64.83 64.83 - 64.83 -
Purchases made during the year - - - d) Loans and advances to customers 67,659.69 67,997.55 - - 67,997.55
Issues made during the year e) Financial investments - at amortised cost 1,536.63 1,590.27 1,364.89 225.38 -
f) Other financial assets 270.93 270.93 - 270.93 -
Disposals made during the year - - -
Total 74,359.69 74,751.19 6,192.50 561.14 67,997.55
Sale made during the year
Financial liabilities
Transfers into Level 3 a) Trade Payables 1,163.83 1,163.83 - 1,163.83 -
Transfers out of Level 3 b) Debt securities 21,597.15 23,150.85 23,150.85 - -
Closing balance 42.38 - 42.38 c) Borrowings other than debt securities 28,652.09 28,706.22 - 28,706.22 -
d) Deposits 8,286.26 9,178.43 - 9,178.43 -
c) Equity Investments designated at Fair value through Other Comprehensive Income e) Subordinated Liabilities 3,590.13 4,042.84 4,042.84 - -
f) Other financial liability 2,874.83 2,643.85 - 2,643.85 -
The Group has made the below equity investments neither for the purpose of trading nor for the
Total 66,164.29 68,886.02 27,193.69 41,692.33 -
purpose of acquiring controlling stake, and accordingly, the investment has been classified in other
comprehensive income as per Ind AS 109.5.7.5.
There were no transfers between Level 1 and Level 2.

₹ in crores
Valuation methodologies of financial instruments not measured at fair value
Particulars 31st March 2023 31st March 2022 Below are the methodologies and assumptions used to determine fair values for the above financial
Equity investment in Smartshift Logistic Solutions Private Limited
instruments which are not recorded and measured at fair value in the company's financial statements.
(formerly Known as Orizonte Business Solutions Limited)
These fair values were calculated for disclosure purposes only.
Fair Value of Investments 42.38 42.38
Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve months),
There are no disposal of investment during the year ended 31 st March 2023 and 2022 respectively.
the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value.
Such instruments include: cash and balances, trade receivables, balances other than cash and cash
d) Financial Instruments measured at amortised cost
equivalents, trade payables and investment & borrowings in commercial papers. Such amounts have
₹ in crores
been classified as Level 2 on the basis that no adjustments have been made to the balances in the
balance sheet.
Carrying Fair value
Particulars Fair value
Value Level 1 Level 2 Level 3
Loans and advances to customers
As at 31st March 2023
The fair values of loans and receivables are calculated using a portfolio-based approach, grouping
Financial assets
loans as far as possible into homogenous groups based on similar characteristics. The fair value is
a) Cash and cash equivalent 586.53 586.53 586.53 - -
then extrapolated to the portfolio using discounted cash flow models that incorporate interest rate
b) Bank balances other than cash and cash 3,480.38 3,480.38 3,480.38 - -
estimates considering all significant characteristics of the loans. This fair value is then reduced by
equivalent
impairment allowance which is already calculated incorporating probability of defaults and loss given
c) Trade Receivables 98.35 97.52 - 97.52 -
defaults to arrive at fair value net of risk.
d) Loans and advances to customers 86,456.07 85,981.92 - - 85,981.92
e) Financial investments - at amortised cost 1,445.70 1,460.38 1,315.15 145.23 -

496 Empowering Emerging India INTEGRATED REPORT 2022-23 497

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Financial Investments ₹ in crores

For Government Securities, the market value of the respective Government Stock as on date of 31 st March 2023 31st March 2022
reporting has been considered for fair value computations. Since market quotes are not available in Assets Within 12 After 12 Within 12 After 12
the absence of any trades, the carrying amount of Secured redeemable non-convertible debentures is Total Total
months months months months
considered as the fair value. 1,246.00 - 1,246.00 1,112.92 - 1,112.92
ii) total outstanding dues of
creditors other than micro

Issued debt enterprises and small enterprises
The fair value of issued debt is estimated by a discounted cash flow model incorporating interest rate Other Payables
estimates from market-observable data such as secondary prices for its traded debt itself.
i) total outstanding dues of micro 2.62 - 2.62 3.53 - 3.53
enterprises and small enterprises
Deposits from public
ii) total outstanding dues of 37.35 - 37.35 47.10 - 47.10
The fair value of deposits received from public is estimated by discounting the future cash flows creditors other than micro
considering the interest rate applicable on the reporting date for that class of deposits segregated by enterprises and small enterprises
their tenure and cumulative / non-cumulative scheme. 10,316.26 17,596.53 27,912.79 5,324.79 16,272.36 21,597.15
Debt Securities

Except for the above, carrying value of other financial assets / liabilities represent reasonable estimate Borrowings (Other than Debt 17,411.40 26,743.00 44,154.40 12,332.43 16,319.66 28,652.09
Securities)
of fair value.
Deposits 1,888.98 3,569.76 5,458.74 4,815.48 3,470.79 8,286.26
Note: 52 Subordinated Liabilities 140.12 3,762.51 3,902.63 69.94 3,520.19 3,590.13
Maturity analysis of assets and liabilities Other financial liabilities 2,322.22 643.31 2,965.53 2,072.53 802.31 2,874.84
The table below shows the maturity analysis of assets and liabilities according to when they are expected to be Non-Financial Liabilities
recovered or settled. Current tax liabilities (Net) 60.23 13.92 74.15 15.22 12.38 27.60
Provisions 3.61 305.73 309.34 153.99 121.97 275.96
₹ in crores
Other non-financial liabilities 129.26 9.78 139.04 118.38 2.43 120.81
31 st March 2023 31st March 2022
Assets Total Liabilities 33,607.45 52,775.88 86,383.33 26,105.29 40,665.61 66,770.89
Within 12 After 12 Within 12 After 12
Total Total
months months months months Net 8,092.49 10,608.95 18,701.44 10,142.68 6,895.09 17,037.77
Cash and cash equivalents 586.53 - 586.53 765.32 - 765.32 Other undrawn commitments 1,054.35 - 1,054.35 545.11 - 545.11
Bank balance 3,480.38 - 3,480.38 4,062.29 - 4,062.29 Total commitments 1,054.35 - 1,054.35 545.11 - 545.11
Derivative financial instruments - - - 26.63 - 26.63
Trade receivables 98.35 - 98.35 64.83 - 64.83 Note: 53
Loans 33,881.79 52,574.28 86,456.07 29,028.11 38,631.57 67,659.69 Related party disclosures:
Investments 3,136.10 6,927.03 10,063.13 2,116.45 6,537.69 8,654.14 i) As per Ind AS 24 on 'Related party disclosures', the related parties of the Company are as follows:
Other financial assets 198.69 1,465.23 1,663.92 91.17 179.77 270.94 a)
Holding Company Mahindra & Mahindra Limited
Current tax assets (Net) - 568.50 568.50 - 486.25 486.25 b)
Fellow Subsidiaries :
(entities with whom the Company has transactions) Mahindra USA, Inc
Deferred tax Assets (Net) - 745.80 745.80 - 951.27 951.27
NBS International Limited
Property, plant and equipment - 855.10 855.10 - 461.07 461.07 Mahindra First Choice Wheels Limited
Capital work-in-progress - - - - - - Mahindra Defence Systems Limited
Intangible assets under - 2.64 2.64 - 2.10 2.10 Mahindra Integrated Business Solutions Limited
development Meru Mobility Tech Private Limited
Mahindra Construction Co. Limited
Goodwill - - - - 43.40 43.40
Bristlecone India Limited
Other Intangible assets - 15.50 15.50 - 10.81 10.81 Mahindra Water Utilities Limited
Other non-financial assets 318.10 230.75 548.85 93.16 256.77 349.93 Gromax Agri Equipment Limited
Total Assets 41,699.94 63,384.83 1,05,084.77 36,247.96 47,560.69 83,808.66 Mahindra Electric Mobility Limited
Mahindra Holidays & Resorts India Limited
Liabilities New Democratic Electoral Trust
Financial Liabilities - - Mahindra Susten Pvt Limited
Derivative financial instruments 49.36 131.34 180.70 38.70 143.53 182.22 Mahindra & Mahindra Contech Pvt Limited
Mahindra Two Wheeler Limited
Trade Payables - -
Mahindra Sumit Agriscience Limited
i) total outstanding dues of micro 0.04 - 0.04 0.28 - 0.28 Swaraj Engines Limited
enterprises and small enterprises Martial Soleren Pvt. Limited

498 Empowering Emerging India INTEGRATED REPORT 2022-23 499

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

Mahindra Heavy Engines Limited ₹ in crores

Mahindra Teqo Pvt Limited Fellow Subsidiaries
Relatives of Key
/ Joint Ventures / Joint Venture(s) / Key Management
Holding Company Management
Associates of Holding Associate(s) Personnel
c)
Joint Venture(s) / Associate(s): Mahindra Finance USA, Inc Company
Personnel
(entities on whom control is exercised) Mahindra Ideal Finance Ltd ^ (till 8th July 2021) Particulars Year Year Year Year Year Year Year Year
 Mahindra Manulife Investment Management Year
ended
ended
Year
ended
ended ended ended ended ended ended ended
Private Limited 31st March
31st
March
31st March
31st
March
31st
March
31st
March
31st
March
31st
March
31st
March
31st
March
2023 2023
Mahindra Manulife Trustee Private Limited 2022 2022 2023 2022 2023 2022 2023 2022

-M
 ahindra & Mahindra Contech Private - - 0.04 0.01 - - - - - -
d)
Joint Venture(s) / Associate(s) of Holding Company: Tech Mahindra Limited Limited
(entities with whom the Company has transactions) Smartshift Logistics Solutions Pvt Ltd. (earlier - Swaraj Engines Limited - - 0.13 - - - - - - -
known as Resfeber Labs Private Limited) - - 0.29 - - - - - - -
- Mahindra Susten Private Limited
PSL Media & Communications Ltd
- Mahindra Heavy Engines Limited - - 0.21 - - - - - - -

e)
Key Management Personnel: Dr. Anish Shah - Mahindra First Choice Wheels Limited - - 0.19 - - - - - - -
(where there are transactions) Mr. Ramesh Iyer - Mahindra Solarize Private Limited - - 0.17 - - - - - - -
Mr. Dhananjay Mungale -M
 ahindra Integrated Business - - 0.08 - - - - - - -
Mr. C. B. Bhave solution
Ms. Rama Bijapurkar - Mahindra Teqo - - 0.08 - - - - - - -
Mr. Milind Sarwate
-M
 ahindra Summit Agriscience - - 0.09 - - - - - - -
Mr. Amit Kumar Sinha Limited
Mr. Amit Raje
- Mahindra Two Wheelers Limited - - 0.10 - - - - - - -
(Ceased to be a director w.e.f 28.7.22)
Dr. Rebecca Nugent Interest income
Mr. Siddhartha Mohanty - Mahindra & Mahindra Limited 1.47 3.61 - - - - - - - -
Mr. Diwakar Gupta Income from sharing services
- Mahindra & Mahindra Limited 0.18 0.57 - - - - - - - -
f) Relatives of Key Management Personnel Ms. Janaki Iyer
(where there are transactions) Mr. Dinesh Iyer -M
 ahindra Manulife Investment - - - - 0.62 0.62 - - - -
Management Private Limited
^Pursuant to the Share Subscription, Share Purchase and Shareholders' Agreement dated 20 th August 2019 with Ideal Finance - - - - 0.01 0.01 - - - -
-M
 ahindra Manulife Trustee Private
Limited, Sri Lanka (“Ideal Finance”) and its existing shareholders for investment of the third and final tranche for acquisition of shares Limited
of Ideal Finance from its existing shareholders, the Company has completed the acquisition of the balance 20% of the Equity Share
Capital aggregating 2,91,29,032 Equity Shares of Ideal Finance from its existing shareholders for ₹ 33.97 crore on 8 th July 2021, Sale of Services
resulting in an increase in the Company’s stake in Ideal Finance from 38.20% to 58.20% with a cumulative investment of ₹77.97 - Tech Mahindra Limited - - - - - 0.04 - - - -
Crore. Consequent to this investment, Ideal Finance has become a Subsidiary of the Company effective 8 th July 2021 and the name
has been changed to Mahindra Ideal Finance Limited. Interest expense
- Mahindra & Mahindra Limited 0.47 4.51 - - - - - - - -
ii) The nature and volume of transactions of the Company during the year with above related parties
-M
 ahindra Manulife Investment - - - - 4.10 4.10 - - - -
were as follows:
Management Private Limited

₹ in crores - Swaraj Engines Ltd. - - - 0.41 - - - - - -

Fellow Subsidiaries - Tech Mahindra Limited - - 10.80 19.17 - - - - - -

Relatives of Key
/ Joint Ventures / Joint Venture(s) / Key Management
Holding Company Management - Mahindra Water Utilities Limited - - 0.15 0.82 - - - - - -
Associates of Holding Associate(s) Personnel
Personnel
Company
-M
 ahindra Holidays & Resorts India - - 8.02 21.06 - - - - - -
Particulars Year Year Year Year Year Year Year Year
Year Year Limited
ended ended ended ended ended ended ended ended
ended ended
31st 31st 31st 31st 31st 31st 31st 31st - Mahindra First Choice Wheels Ltd. - - - 0.78 - - - - - -
31st March st
31 March
March March March March March March March March
2023 2023 - PSL Media & Communications Ltd - - 0.04 0.06 - - - - - -
2022 2022 2023 2022 2023 2022 2023 2022

Loan income - Mr. Ramesh Iyer - - - - - - 0.05 0.05 - -

- Smartshift Logistics Solutions Pvt Ltd. - - - - - - - - - - - Others - - - - - - - - 0.28 0.31

Subvention / Incentive income Other expenses

- Mahindra & Mahindra Limited 72.97 16.34 - - - - - - - - - Mahindra & Mahindra Limited 56.61 42.15 - - - - - - - -

- Mahindra Electric Mobility Limited - - 2.35 0.30 - - - - - - - Mahindra First Choice Wheels Limited - - 23.13 18.39 - - - - - -

Lease rental income - Mahindra Defence Systems Ltd - - 2.28 3.74 - - - - - -

- Mahindra & Mahindra Limited 59.08 20.38 - - - - - - - - - Bristlecone India Limited - - 0.02 0.35 - - - - - -

- Mahindra Electric Mobility Limited - - 0.30 0.20 - - - - - - - NBS International Limited - - 1.53 0.92 - - - - - -

500 Empowering Emerging India INTEGRATED REPORT 2022-23 501

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

₹ in crores ₹ in crores
Fellow Subsidiaries Fellow Subsidiaries
Relatives of Key Relatives of Key
/ Joint Ventures / Joint Venture(s) / Key Management / Joint Ventures / Joint Venture(s) / Key Management
Holding Company Management Holding Company Management
Associates of Holding Associate(s) Personnel Associates of Holding Associate(s) Personnel
Personnel Personnel
Company Company
Particulars Year Year Year Year Year Year Year Year Particulars Year Year Year Year Year Year Year Year
Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended
ended ended ended ended
31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st
31st March 31st March 31st March 31st March
March March March March March March March March March March March March March March March March
2023 2023 2023 2023
2022 2022 2023 2022 2023 2022 2023 2022 2022 2022 2023 2022 2023 2022 2023 2022

- Mahindra Integrated Business - - 58.10 37.34 - - - - - - Fixed deposits matured

Solutions Ltd.
- Mahindra & Mahindra Limited 13.01 2.32 - - - - - - - -
- Mahindra Holidays & Resorts India - - 0.03 - - - - - - -
- PSL Media & Communications Ltd - - 1.55 0.90 - - - - - -
Limited
- - 0.02 - - - - - - - - Mahindra Holidays & Resorts India Ltd - - - 15.00 - - - - - -
- Meru Mobility Tech Private Limited
- - 0.05 - - - - - - - - Mr. Ramesh Iyer - - - - - - 0.91 0.79 - -
- Mahindra Solarize Private Limited
- - 0.66 0.06 - - - - - - - Mr. C. B. Bhave - - - - - - - 0.30 - -
- Others
- Others - - - - - - - - 1.83 1.73
Remuneration
- Mr. Ramesh Iyer - - - - - - 7.09 7.46 - - Dividend paid

- - - - - - 8.37 3.51 - - - Mahindra & Mahindra Limited 231.98 51.55 - - - - - - - -

- Mr. Amit Raje
- Mr. Ramesh Iyer - - - - - - 0.59 0.14 - -
Sitting fees and commission
- - - - - - 0.52 0.46 - - - Ms. Rama Bijapurkar - - - - - - 0.01 0.00 - -
- Mr. C. B. Bhave
- - - - - - 0.53 0.47 - - - Mr. Dhananjay Mungale - - - - - - 0.00 0.00 - -
- Mr. Dhananjay Mungale
- - - - - - 0.48 0.42 - - - Others - - - - - - - - 0.00 -
- Ms Rama Bijapurkar
- Mr. Milind Sarwate - - - - - - 0.56 0.47 - - Inter corporate deposits taken

- - - - - - 0.42 0.38 - - - Tech Mahindra Limited - - - 200.00 - - - - - -

- Dr. Rebecca Nugent
- - - - - - 0.12 - - - - Mahindra Water Utilities Limited - - - 4.26 - - - - - -
- Mr. Diwakar Gupta
-M
 ahindra Holidays & Resorts India - - - 230.00 - - - - - -
Reimbursement from parties
Limited
- Mahindra & Mahindra Limited 16.22 35.20 - - - - - - - -
Inter corporate deposits repaid /
- Mahindra Manulife Investment - - - - - 0.06 - - - - matured
Management Private Limited
- Mahindra & Mahindra Limited - 50.00 - - - - - - - -
- Gromax Agri Equipment Limited - - 4.09 4.65 - - - - - -
- Tech Mahindra Limited - - - 500.00 - - - - - -
Reimbursement to parties
-M
 ahindra Holidays & Resorts India - - - 385.00 - - - - - -
- Mahindra Electric Mobility Limited - - - 0.02 - - - - - - Limited
- Mahindra USA, Inc - - 2.56 2.33 - - - - - - - Mahindra Water Utilities Limited - - 4.26 11.75 - - - - - -
Purchase of fixed assets (incl - Mahindra First Choice Wheels Ltd. - - - 25.00 - - - - - -
Capital advances)
- Swaraj Engines Ltd. - - - 10.00 - - - - - -
- Mahindra & Mahindra Limited 134.95 116.13 - - - - - - - -
Debentures issued
- NBS International Limited - - 10.19 6.04 - - - - - -
- Mahindra & Mahindra Limited - - - - - - - - - -
Investments made
Debentures matured
- Mahindra Ideal Finance Ltd - - - 33.97 - - - - - -
- Mahindra & Mahindra Limited - 95.00 - - - - - - - -
Fixed deposits taken
- Tech Mahindra Limited - - - 150.00 - - - - - -
- Mahindra & Mahindra Limited 2.10 11.99 - - - - - - - -
Issue of Share Capital (incl
- PSL Media & Communications Ltd - - 0.86 0.90 - - - - - - Securities premium)
- Mahindra Holidays & Resorts India - - - 5.00 - - - - - - - Mahindra & Mahindra Limited - - - - - - - - - -
Limited
- Mr. Ramesh Iyer - - - - - - 0.80 0.91 - - Key Management Personnel as defined in Ind AS 24
- Others - - - - - - - - 2.18 1.82

502 Empowering Emerging India INTEGRATED REPORT 2022-23 503

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

iii) Balances as at the end of the year: ₹ in crores

Fellow Subsidiaries
₹ in crores / Joint Ventures / Joint Venture(s) / Key Management
Relatives of Key
Holding Company Management
Associates of Holding Associate(s) Personnel
Fellow Subsidiaries Personnel
Relatives of Key Company
/ Joint Ventures / Joint Venture(s) / Key Management
Holding Company Management Particulars
Associates of Holding Associate(s) Personnel Year Year Year Year Year Year Year Year
Personnel Year Year
Company ended ended ended ended ended ended ended ended
ended ended
Particulars 31st 31st 31st 31st 31st 31st 31st 31st
Year Year Year Year Year Year Year Year 31st March 31st March
Year Year March March March March March March March March
ended ended ended ended ended ended ended ended 2023 2023
ended ended 2022 2022 2023 2022 2023 2022 2023 2022
31st 31st 31st 31st 31st 31st 31st 31st
31st March st
31 March
March March March March March March March March - - 0.00 0.02 - - - - - -
2023
2022
2023
2022 2023 2022 2023 2022 2023 2022
- NBS International Limited

Balances as at the end of the period - Others - - - 0.01 - - - - - -

Receivables Inter corporate deposits taken

22.65 6.81 - - - - - - - - (including interest accrued but
- Mahindra & Mahindra Limited
not due)
- NBS International Limited - - 0.92 1.41 - - - - - -
- Mahindra & Mahindra Limited - - - - - - - - - -
- Mahindra Electric Mobility Limited - - - 0.10 - - - - - -
- Tech Mahindra Limited - - 217.26 207.54 - - - - - -
- Mahindra Manulife Investment - - - - 0.01 0.05 - - - -
Management Pvt. Ltd. - Mahindra Water Utilities Limited - - - 4.28 - - - - - -
- Mahindra Manulife Trustee Private - - - - - 0.01 - - - - - Mahindra Holidays and Resorts - - 246.25 239.31 - - - - - -
Limited India Limited
- Mahindra First Choice Services - - 0.06 - - - - - - -
Fixed deposits (including
Limited
interest accrued but not due)
- Swaraj Engines Limited - - 0.04 - - - - - - -
- Mahindra & Mahindra Limited 4.48 15.69 - - - - - - - -
- Mahindra Summit Agriscience - - 0.03 - - - - - - -
Limited -P
 SL Media & Communications - - 0.21 0.93 - - - - - -
Ltd
- Mahindra Teqo - - 0.01 - - - - - - -
-M
 ahindra Holidays & Resorts - - 5.29 5.01 - - - - - -
Investments
India Limited
- Mahindra Finance USA, Inc. - - - - 210.55 210.55 - - - -
- Mr. Ramesh Iyer - - - - - - 0.01 0.92 - -
- Mahindra Ideal Finance Ltd - - - - - 77.97 - - - -
- Others - - - - - - - - 0.06 4.39
- Mahindra Manulife Investment - - - - 195.30 195.30 - - - -
Management Pvt. Ltd.
- Mahindra Manulife Trustee Private - - - - 0.50 0.50 - - - - iv) Disclosure required under Section 186 (4) of the Companies Act, 2013
Limited
- New Democratic Electoral Trust - - 0.02 0.02 - - - - - - As at 31st March 2023
- Smartshift Logistics Solutions Pvt - - 9.50 9.50 - - - - - - ₹ in crores
Ltd. Balance as Balance as on
Advances / Repayments/
Subordinate debt held (including Particulars Relation on 1st April 31st March
investments sale
2022 2023
interest accrued but not due)
(A) Loans and advances
- Mahindra Manulife Investment - - - - 48.56 48.57 - - - -
Management Pvt. Ltd. - - - -
Debentures (including interest (B) Investments
accrued but not due) Mahindra Finance USA, LLC Associate 210.55 - - 210.55
- Mahindra & Mahindra Limited - - - - - - - - - - Smartshift Logistics Solutions Pvt. Ltd. Fellow 9.50 - - 9.50
Associate
- Tech Mahindra Limited - - - - - - - - - -
Mahindra Manulife Investment Management Joint Venture 195.30 - - 195.30
Payables Private Limited
- Mahindra & Mahindra Limited 1.76 1.13 - - - - - - - - Mahindra Manulife Trustee Private Limited Joint Venture 0.50 - - 0.50
-M
 ahindra First Choice Wheels - - 5.77 6.77 - - - - - - New Democratic Electoral Trust Fellow 0.02 0.01 - 0.02
Limited subsidiary
- Mahindra USA, Inc. - - 0.37 0.16 - - - - - - 415.87 0.01 - 415.87
-M
 ahindra Integrated Business - - 1.25 1.27 - - - - - - Total 415.87 0.01 - 415.87
Solutions Limited
Notes :
- Mahindra Defence Systems Ltd - - 0.59 - - - - - - - i) Above loans & advances and investments have been given for general business purposes.
ii) There were no guarantees given / securities provided during the year.

504 Empowering Emerging India INTEGRATED REPORT 2022-23 505

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial
st
Statements
as at 31 March 2023 as at 31 March 2023

As at 31st March 2022 ₹ in crores

₹ in crores Name of the KMP Nature of transactions 31st March 2023 31st March 2022
Balance as Balance as on Mr. Dhananjay Mungale (Independent Director)
Advances / Repayments /
Particulars Relation on 1st April 31st March
2021
investments sale
2022
Commission 0.30 0.32
Sitting fees 0.18 0.17
(A) Loans and advances
0.48 0.49
- - - -
Ms. Rama Bijapurkar (Independent Director)
(B) Investments
Commission 0.30 0.25
Mahindra Finance USA, LLC Associate 210.55 - - 210.55
Sitting fees 0.13 0.12
Mahindra Ideal Finance Limited (Refer Subsidiary 44.00 33.97 77.97 -
note 41) 0.43 0.37
Smartshift Logistics Solutions Pvt. Ltd. Fellow 9.50 - - 9.50 Mr. C.B. Bhave (Independent Director)
Associate Commission 0.30 0.25
Mahindra Manulife Investment Joint Venture 195.30 - - 195.30 Sitting fees 0.17 0.16
Management Private Limited
0.47 0.41
Mahindra Manulife Trustee Private Joint Venture 0.50 - - 0.50
Mr. Milind Sarwate (Independent Director)
Limited
Commission 0.30 0.25
New Democratic Electoral Trust Fellow 0.02 - - 0.02
subsidiary Sitting fees 0.21 0.17
459.87 33.97 77.97 415.87 0.51 0.42
Total 459.87 33.97 77.97 415.87 Dr. Rebecca Nugent
Notes : (Appointed w.e.f. 5th March 2021 ) Commission 0.30 0.02
i) Above loans & advances and investments have been given for general business purposes. Sitting fees 0.07 0.07
ii) There were no guarantees given / securities provided during the year. 0.37 0.09
Mr. Diwakar Gupta
v) Details of related party transactions with Key Management Personnel (KMP) are as under : (Appointed w.e.f. 1st January 2023 ) Commission - 0.02
Key management personnel are those individuals who have the authority and responsibility for planning Sitting fees 0.03 0.07
and exercising power to directly or indirectly control the activities of the Company or its employees. 0.03 0.09
Accordingly, the Company considers any Director, including independent and non-executive directors,
to be key management personnel for the purposes of IND AS 24 - Related Party Disclosures.
Note: 54
₹ in crores Disclosure of interest in Subsidiaries and interest of Non Controlling Interest :
Name of the KMP Nature of transactions 31st March 2023 31st March 2022 a) Details of Group's subsidiaries at the end of the reporting period are as follows:
Mr. Ramesh Iyer (Vice-Chairman & Managing
Director) ₹ in crores
Gross Salary including 6.77 4.47 Place of Proportion of Ownership Interest /
perquisites Name of the Subsidiary Incorporation and Voting power
Commission - 1.28 Place of Operation 31st March 2023 31st March 2022
Stock Option - 1.45 Mahindra Insurance Brokers Limited (MIBL) India 80.00% 80.00%
Others - Contribution to 0.39 0.33 Mahindra Rural Housing Finance Limited (MRHFL) India 99.04% 99.25%
Funds Mahindra & Mahindra Financial Services Limited Employees India 100.00% 100.00%
7.16 7.53 Stock Option Trust
Mr. Amit Raje (Whole-time Director & Chief Mahindra Rural Housing Finance Limited Employee Welfare India 100.00% 100.00%
Operating Officer - Digital Finance - Digital Trust
Business Unit) Mahindra Finance CSR Foundation India 100.00% 100.00%
(Ceased to be a director w.e.f 28.7.22) Gross Salary including 4.02 2.79 Mahindra Ideal Finance Ltd Sri Lanka 58.20% 58.20%
perquisites
Commission - -
Stock Option 4.35 0.70
Others - Contribution to 0.08 0.09
Funds
8.44 3.58

506 Empowering Emerging India INTEGRATED REPORT 2022-23 507

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financialst
Statements Financialst
Statements
as at 31 March 2023 as at 31 March 2023

b) Details of Group's associate / joint venture at the end of the reporting period are as follows: ₹ in crores
Mahindra Ideal Finance
₹ in crores Mahindra Insurance Mahindra Rural Housing
Limited (Refer note 40
Brokers Limited Finance Limited
Place of Proportion of Ownership Interest / Particulars and 41)
Name of the Associate / Joint Venture Incorporation and Voting power
31st March 31st March 31st March 31st March 31st March 31st March
Place of Operation 31st March 2023 31st March 2022 2023 2022 2023 2022 2023 2022
Mahindra Manulife Investment Management Private. Limited India 51.00% 51.00% Dividends paid to Non-controlling interest 1.03 0.62 - - - -
(Joint Venture) Opening Cash & Cash Equivalents 10.14 11.80 423.69 218.14 3.51 1.73
Mahindra Manulife Trustee Company Private Limited (Joint India 51.00% 51.00% Closing Cash & Cash Equivalents 17.32 10.14 314.94 423.69 4.13 3.51
Venture)
Net Cash inflow / (outflow) - includes Foreign 7.18 (1.66) (108.75) 205.55 0.62 1.79
Mahindra Finance USA, LLC (Associate) USA 49.00% 49.00% currency translation
*The Equity interest attributable to the owners and Non-controlling interest for MIFL is excluding the impairment loss
c) Details of Non-Wholly Owned Subsidiaries that have material Non Controlling Interest: provision adjusted against identified assets.

₹ in crores e) Summarised financial information in respect of each of the Group's associate and joint venture that
Proportion of has material non-controlling interests is set out below. The summarised financial information below
Ownership Interest Profit / (Loss) (including
Place of and voting rights held OCI) allocated to Non-
Accumulated Non- represents amounts before intragroup eliminations and are based on their standalone financial
controlling interest
Name of the Subsidiary
Incorporation by Non-controlling controlling interest statements:
and Place of interests
Operation
31st March 31st March 31st March 31st March 31st March 31st March ₹ in crores
2023 2022 2023 2022 2023 2022 Mahindra Ideal
Mahindra Manulife
Mahindra Insurance Brokers India 20.00% 20.00% 6.86 10.42 106.64 100.81 Finance Ltd
Investment Mahindra Manulife Mahindra Finance USA,
Limited (till 30 th June
Particulars Management Private Trustee Private Limited LLC
2021)
Mahindra Rural Housing Finance India 0.96% 0.75% 0.19 0.36 14.24 10.91 Limited
(Refer note 41)
Limited
2023 2022 2023 2022 2023 2022 2022
Mahindra Ideal Finance Limited Sri Lanka 41.80% 41.80% 0.84 2.75 20.47 29.74
Financial Assets 225.88 263.41 1.32 1.14 9,374.75 8,295.31 76.05
(Refer note 41)
Non Financial Assets 23.06 12.11 0.07 0.09 31.26 24.09 4.13
TOTAL 7.89 13.53 141.35 141.46
Financial Liabilities 23.4 15.59 0.02 0.02 7,926.01 7,069.55 41.86
The Company has written put option for acquiring ownership interest held by Non Controlling Interest in Non Financial Liabilities 9.52 13.11 0.05 0.03 - - 1.87
the above mentioned subsidiaries.
Equity interest attributable to the 110.17 125.87 0.67 0.60 725.20 612.43 13.92
owners
d) Summarised financial information in respect of each of the Group's subsidiaries that has material
Non-controlling interest 105.85 120.94 0.65 0.58 754.80 637.43 58.97
non-controlling interests is set out below. The summarised financial information below represents
amounts before intragroup eliminations and considered in consolidated financial statements: Total Interest Income 10.94 8.96 0.00 - 497.36 407.95 9.51
Other income 33.18 26.31 0.81 0.76 22.61 18.69 0.33
₹ in crores Finance Costs 0.53 0.39 - - 201.55 144.00 2.26
Mahindra Ideal Finance Depreciation and amortisation 2.58 1.93 0.00 0.00 - - 0.28
Mahindra Insurance Mahindra Rural Housing
Limited (Refer note 40
Brokers Limited Finance Limited Other expenses 71.87 71.01 0.65 0.53 159.64 109.97 4.12
Particulars and 41)
31st March 31st March 31st March 31st March 31st March 31st March Income tax expense - - 0.02 - 38.39 43.13 1.00
2023 2022 2023 2022 2023 2022 Profit / (Loss) for the year (30.86) (38.06) 0.14 0.23 120.39 129.54 2.18
Financial Assets 582.70 564.49 8,421.50 8,315.53 205.02 205.17 Total Comprehensive Income for (30.78) (37.97) 0.14 0.23 120.39 129.54 2.18
Non Financial Assets 99.55 65.10 296.27 198.07 14.34 14.68 the year
Financial Liabilities 101.73 74.24 7,214.82 7,024.17 146.95 146.46 Total Comprehensive Income (15.70) (19.36) 0.07 0.12 58.99 63.47 0.83
attributable to the owners of the
Non Financial Liabilities 47.32 51.30 21.32 34.92 1.69 2.23
company
Equity interest attributable to the owners* 426.56 403.24 1,467.39 1,443.60 41.16 41.41
Total Comprehensive Income (15.08) (18.61) 0.07 0.11 61.40 66.07 1.35
Non-controlling interest* 106.64 100.81 14.24 10.91 29.56 29.74 attributable to the Non-
Total Income 426.51 348.01 1,349.80 1,377.49 43.70 38.09 controlling interest
Expenses (including tax expenses) 392.07 296.12 1,328.05 1,329.76 41.72 31.56 Opening Cash & Cash Equivalents 0.12 0.06 0.02 0.01 98.35 59.94 0.88
Profit / (Loss) for the year 34.44 51.89 21.75 47.73 1.98 6.53 Closing Cash & Cash Equivalents 0.10 0.12 0.01 0.02 50.86 98.35 0.95
Total Comprehensive Income for the year 34.31 52.10 19.88 46.07 2.01 6.59 Net Cash inflow / (outflow) (0.02) 0.06 (0.01) 0.00 (47.49) 38.41 0.07
Total Comprehensive Income attributable to the 27.45 41.68 19.69 46.05 1.17 3.83
owners of the company Reconciliation of the above summarised financial information to the carrying amount of the interest in the
Total Comprehensive Income attributable to the 6.86 10.42 0.19 0.02 0.84 2.75 associate and joint venture recognised in the consolidated financial statements :
Non-controlling interest

508 Empowering Emerging India INTEGRATED REPORT 2022-23 509

 Business
Management Report on Standalone  onsolidated
C
Corporate Board’s Responsibility
Discussion and Corporate Financial Financial
Overview & IR Report & Sustainability
Analysis Governance Statements Statements
Report

Notes forming part of the Consolidated Notes forming part of the Consolidated
Financial st
Statements Financial st
Statements
as at 31 March 2023 as at 31 March 2023

₹ in crores ₹ in crores
Mahindra Ideal Net assets, i.e. total assets
Share in profit or loss
Share in other comprehensive Share in total
Mahindra Manulife minus total liabilities income comprehensive income
Finance Ltd
Investment Mahindra Manulife Mahindra Finance USA,
(till 30 th June As % of As % of
Particulars Management Private Trustee Private Limited LLC Name of the entity in the Group
2021) As % of As % of consolidated consolidated
Limited consolidated Amount consolidated Amount other Amount total Amount
(Refer note 41)
net assets profit or loss comprehensive comprehensive
2023 2022 2023 2022 2023 2022 2022 income income

Closing Net Assets 216.02 246.81 1.32 1.18 1,480.01 1,249.85 72.89 1. Mahindra Manulife 0.17% 31.07 -0.76% (15.74) -0.12% 0.04 -0.77% (15.70)
Investment Management
Group share in % 51.00% 51.00% 51.00% 51.00% 49.00% 49.00% 58.20%
Private Limited
Group share 110.17 125.87 0.67 0.60 725.20 612.43 42.42 2. Mahindra Manulife Trustee 0.00% 0.47 0.00% 0.07 0.00% - 0.00% 0.07
Carrying amount 110.17 125.87 0.67 0.60 725.20 612.43 44.39 Private Limited
Total 100.00% 18,701.44 100.00% 2,072.40 100.00% (33.63) 100.00% 2,038.77

Note: 55
Note: 56
Additional information as required under Schedule III to the Companies Act, 2013:
Events after the reporting date
Statement of Net assets, Profit and loss and Other comprehensive income attributable to Owners and
There have been no other events after the reporting date that require disclosure in these financial statements.
Non-controlling interest

₹ in crores
Note: 57
Net assets, i.e. total assets Share in other comprehensive Share in total
Share in profit or loss
minus total liabilities income comprehensive income Previous year figures have been regrouped / reclassified wherever necessary to conform to current
Name of the entity in the Group
As % of As % of year presentation.
As % of As % of consolidated consolidated
consolidated Amount consolidated Amount other Amount total Amount
net assets profit or loss comprehensive comprehensive
income income
Parent
Mahindra & Mahindra 88.54% 16,557.80 95.88% 1,986.93 250.20% (84.14) 93.33% 1,902.79
Financial Services Limited
Subsidiaries
Indian -
Signatures to Notes 1 to 57
1. Mahindra Insurance 2.51% 470.14 1.00% 20.66 0.18% (0.06) 1.01% 20.60
Brokers Limited
2. Mahindra Rural Housing 4.78% 894.31 1.03% 21.40 5.41% (1.82) 0.96% 19.58 In terms of our report attached.
For and on behalf of the Board of Directors
Finance Limited
3. Mahindra & Mahindra 0.20% 37.83 0.04% 0.87 0.00% - 0.04% 0.87 For Deloitte Haskins & Sells Mahindra & Mahindra Financial Services Limited
Financial Services Limited Chartered Accountants
Employees Stock Option Firm's Registration No: 117365W Dr. Anish Shah Ramesh Iyer
Trust
Chairman Vice-Chairman & Managing Director
4. Mahindra Rural Housing 0.02% 3.54 -0.03% (0.71) 0.00% - -0.03% (0.71)
Finance Limited Employee Rupen K. Bhatt [DIN: 02719429] [DIN: 00220759]
Welfare Trust Partner
5. Mahindra Finance CSR 0.00% 0.02 0.00% (0.01) 0.00% - 0.00% (0.01) Membership No: 046930 Vivek Karve Brijbala Batwal
Foundation
Chief Financial Officer Company Secretary
6. Mahindra Ideal Finance 0.27% 50.25 0.06% 1.14 1.07% (0.36) 0.04% 0.78
Limited For Mukund M. Chitale & Co. Membership No: F5220

Foreign - - - - - - - - - Chartered Accountants

Non-controlling Interests 0.76% 141.35 -0.06% (1.20) 3.21% (1.08) -0.11% (2.28) Firm's Registration No: 106655W
in all Subsidiaries
Associates (Investment as M. M. Chitale
per the equity method) Partner
Indian - - - - - - - - - Membership No: 14054
Foreign - Place: Mumbai Place: Mumbai
Mahindra Finance USA, LLC 2.75% 514.66 2.85% 58.99 -159.95% 53.79 5.53% 112.78 Date: 28th April 2023 Date: 28th April 2023
Joint Ventures
(Investment as per the
equity method)
Indian - - - - - - - - -

510 Empowering Emerging India INTEGRATED REPORT 2022-23 511

 Annexure A

512
Form AOC - I
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries /associate companies / joint ventures in the Consolidated
Financial Statements
Part "A" : Subsidiaries [as per section 2(87) of the Companies Act, 2013]

₹ in crores
1 Sl No. 1 2 3 4 5 6

Empowering Emerging India

Mahindra Manulife Mahindra Manulife
Mahindra Insurance Mahindra Rural Mahindra CSR Mahindra Ideal
2 Name of the subsidiary Investment Trustee Company
Brokers Ltd. Housing Finance Ltd. Foundation Finance Limited
Management Pvt. Ltd. Pvt. Ltd.

3 The date since when subsidiary was acquired 7th April, 2004 9th April, 2007 2nd April, 2019 20th June, 2013 25th April, 2013 8th July, 2021
4 Reporting period for the subsidiary concerned 1st April, 2022 to 1st April, 2022 to 1st April, 2022 to 1st April, 2022 to 1st April, 2022 to 1st April, 2022 to
31st March, 2023 31st March, 2023 31st March, 2023 31st March, 2023 31st March, 2023 31st March, 2023
5 Reporting currency as on the last date of the INR INR INR INR INR LKR
relevant Financial year
6 Exchange rate 1.00 1.00 1.00 1.00 1.00 0.2495
7 Share Capital 10.31 122.14 0.00 382.94 0.98 47.61
8 Reserves and Surplus 522.90 1,359.49 0.02 -166.92 0.34 23.11
9 Total Assets 682.25 8,717.77 0.03 248.94 1.40 219.36
10 Total Liabilities (excluding Equity Share Capital and 149.05 7,236.13 0.01 32.92 0.08 148.64
Reserves)
11 Investments (excluding subsidiaries) 149.50 340.95 - 97.21 1.27 10.57
12 Turnover 426.51 1,349.80 0.20 44.12 0.81 43.70
13 Profit / (Loss) before tax 46.05 26.29 -0.01 -30.86 0.16 3.48
14 Provision for tax 11.61 4.54 - - 0.02 1.50
15 Profit after tax 34.44 21.75 -0.01 -30.86 0.14 1.98
16 Other Comprehensive Income -0.13 -1.87 - 0.08 - 0.03
17 Total Comprehensive Income 34.31 19.88 -0.01 -30.78 0.14 2.01
18 Proposed dividend & tax thereon 3.61 - - - -
19 Proportion of ownership interest 80.00% 99.04% 100.00% 51.00% 51.00% 58.20%
20 Proportion of voting power where different NA NA NA NA NA NA

For Mahindra & Mahindra Financial Services Limited

Dr. Anish Shah Ramesh Iyer Vivek Karve Brijbala Batwal

Chairman Vice-Chairman & Managing Director Chief Financial Officer Company Secretary
[DIN: 02719429] [DIN: 00220759] Membership No: F5220
Place: Mumbai
Date : 28th April 2023
Chairman

Vivek Karve
Act, 2013]

Place: Mumbai
Dr. Anish Shah

[DIN: 02719429]

Date: 28th April 2023

Chief Financial Officer
Corporate

Number of shares held

Overview & IR

Name of Associate / Joint Venture

7. Profit/(Loss) for the year

Report
Board’s

Proportion of ownership interest %

1. Latest audited Balance Sheet Date

i. Considered in Consolidation (Rs in crores)

ii. Not Considered in Consolidation (Rs in crores)
Analysis

4. Description of how there is significant influence

For Mahindra & Mahindra Financial Services Limited

Management
Discussion and

Cost of Investment in Associates/Joint Venture (Rs in crores)

5. Reason why the associate/joint venture is not consolidated

Report on
Corporate
Governance

2. Date on which the Associate/Joint Venture was associated or acquired

3. Shares of Associate/Joint Ventures held by the company on the year end
Report
Business

Ramesh Iyer

Brijbala Batwal
[DIN: 00220759]
Responsibility

Company Secretary
& Sustainability

Membership No: F5220

6. Networth attributable to Shareholding as per latest audited Balance Sheet (Rs in crores)
Financial
Standalone

Statements

Vice-Chairman & Managing Director

C

Part "B" : Details of Associates / Joint Ventures [as per section 2(6) of the Companies

LLC

INTEGRATED REPORT 2022-23

Financial
Statements
 onsolidated

₹ in crores
Mahindra Finance USA,

513
Not Applicable
decisions
Power to influence
49.00
210.55
3,55,83,920
10th January 2011
31st March 2023

61.40
58.99
725.20
 Corporate Information
Board of Directors Debenture Trustee
Notes Dr. Anish Shah
Stakeholders Relationship
Committee Axis Trustee Services Limited
Chairman & Non-Executive Director Ms. Rama Bijapurkar, Chairperson The Ruby, 2nd Floor, SW, 29
Mr. Ramesh Iyer Senapati Bapat Marg, Dadar (West),
Mr. Ramesh Iyer
Mr. C. B. Bhave Mumbai - 400 028.
Vice-Chairman & MD
Tel.: +91 22 6230 0451;
Mr. Raul Rebello Risk Management Committee Fax: +91 22 4325 3000
Executive Director w.e.f 1st May 2023 Website: www.axistrustee.in
Mr. C. B. Bhave, Chairman
and MD & CEO - Designate E-mail: debenturetrustee@axistrustee.in
Mr. Ramesh Iyer
Mr. Amit Kumar Sinha Mr. Dhananjay Mungale Registrar and Share Transfer
Non-Executive Director Ms. Rama Bijapurkar Agents
Mr. Ashwani Ghai Mr. Milind Sarwate KFin Technologies Limited
Non-Executive Director Mr. Diwakar Gupta Selenium Building, Tower
w.e.f 23rd June 2023 B, Plot Number 31-32,
Corporate Social Responsibility
Committee Gachibowli, Financial District,
Independent Directors
Mr. Dhananjay Mungale, Chairman Nanakramguda, Serilingampally,
Mr. C. B. Bhave Hyderabad - 500 032.
Mr. Ramesh Iyer
Mr. Dhananjay Mungale Ms. Rama Bijapurkar Toll Free No.: -1800-309-4001;
Mr. Milind Sarwate Website: www.kfintech.com;
Committee for Strategic E-mail: einward.ris@kfintech.com
Ms. Rama Bijapurkar Investments
Dr. Rebecca Nugent Mr. Dhananjay Mungale, Chairman Bankers
Mr. Diwakar Gupta Dr. Anish Shah Axis Bank Ltd.
w.e.f 1 st January, 2023 Mr. Ramesh Iyer Bank of Baroda
Mr. Milind Sarwate BNP Paribas S.A.
Chief Financial Officer Central Bank of India
Mr. Vivek Karve IT Strategy Committee Citibank N.A.
Mr. Milind Sarwate, Chairman Development Bank of Singapore Ltd.
Company Secretary Mr. Ramesh Iyer Deutsche Bank AG
Ms. Brijbala Batwal Mr. C. B. Bhave Dhanlaxmi Bank Ltd.
Dr. Rebecca Nugent Federal Bank Ltd.
Registered Office
Mr. Amit Kumar Sinha HDFC Bank Ltd.
Gateway Building, Apollo Bunder,
ICICI Bank Ltd.
Mumbai - 400 001. Digital & AI Committee Indian Bank
CIN: L65921MH1991PLC059642
Dr. Rebecca Nugent, Chairperson Karnataka Bank
Website: www.mahindrafinance.com
Mr. Ramesh Iyer Kotak Mahindra Bank Limited
E-mail: investorhelpline_mmfsl@
Mr. Milind Sarwate PT Bank Maybank Indonesia Tbk
mahindra.com
Mr. Amit Kumar Sinha Mizuho Bank Limited
Corporate Office Mr. Raul Rebello MUFG Bank Limited
Mahindra Towers, ‘A’ Wing, 4th Floor, Punjab National Bank
Committee Constituted by Board,
Dr. G. M. Bhosale Marg, Led By VC & MD RBL Bank Limited
P. K. Kurne Chowk, Asset Liability Committee Société Générale
Worli, Mumbai - 400 018. Standard Chartered Bank
Mr. Ramesh Iyer, Chairman
Tel.: +91 22 6652 6000 State Bank of India
Mr. Dhananjay Mungale
Fax: +91 22 2497 2741 Sumitomo Mitsui Banking Corporation
Mr. Milind Sarwate
The Hongkong and Shanghai Banking
Committees Constituted by the Mr. Diwakar Gupta
Corporation Limited
Board, led by Independent Directors Mr. Raul Rebello
Union Bank of India
Audit Committee
Joint Statutory Auditors
Mr. C. B. Bhave , Chairman List of Institutions
Deloitte Haskins & Sells
Mr. Dhananjay Mungale National Bank for Agriculture and
And
Mr. Milind Sarwate Rural Development (NABARD)
Mukund M. Chitale & Co.
Ms. Rama Bijapurkar Small Industries Development Bank of
Mr. Amit Kumar Sinha Secretarial Auditors India (SIDBI)
Mr. Diwakar Gupta Makarand M. Joshi & Co. Micro Units Development & Refinance
Agency Limited (MUDRA Ltd)
Nomination and Remuneration
Committee Solicitors
Khaitan & Co.
Mr. Dhananjay Mungale, Chairman
Dr. Anish Shah
Mr. C. B. Bhave
Mr. Milind Sarwate
Mr. Diwakar Gupta
Stock Exchange Codes
NSE: M&MFIN
BSE: 532720
Bloomberg: MMFS:IN

Mahindra & Mahindra Financial Services Limited

Mahindra Towers, ‘A’ Wing, 4th Floor, Dr. G.M. Bhosale Marg,
P. K. Kurne Chowk, Worli, Mumbai - 400 018
CIN: L65921MH1991PLC059642
www.mahindrafinance.com

General Disclosures: GRI 102-3